Orinoco Gold Ltd. has suspended all milling and processing activities in Brazil, where it operates the Cascavel gold mine.
The company said May 28 it took the decision in light of a nationwide truck strike in the country, started May 21, which has left the state of Goias, as well as other states, without a supply of diesel oil.
"We had hoped to resume operations this week but the strike appears to have worsened over the weekend," the company wrote, adding that mining activities will also be suspended if the fuel shortage is not resolved by the end of the week.
Countrywide road blockages have also prevented operating supplies reaching the mine.
Meanwhile, the company's drilling contractors said they have enough fuel to complete the ongoing program at Antena.
"It must be noted that it is not only Cascavel that is suffering from these strikes as the country is coming to a standstill and that most junior, mid-tier and major mining companies, as well other industries are all suffering in the wake of this transport strike."
In the prior week, Avanco Resources Ltd. said it may have to scale back some operations in Brazil to preserve fuel stocks due to the strike.
