Jaguar Mining Inc. is significantly scaling back underground mining activities at the Pilar and Turmalina gold mines due to the ongoing nationwide truck drivers' strike in Brazil.
The move results from delays in delivery of fuel and other critical mining consumables needed to sustain normal mining activities, the company said May 31.
Gold processing facilities will remain operational, while equipment maintenance and administrative oversight activities at both sites will continue, Jaguar added.
The company said that it continues to maintain a sufficient level of working capital to meet its financial obligations, and will assess the impact on its production guidance once operations restart.
In March, Jaguar projected that annual production at Pilar would range between 39,000 and 47,000 ounces this year, while the company's total gold production guidance for 2018 was pegged at between 90,000 and 105,000 ounces.
