Volcanic Gold Mines Inc. postponed drilling activities at its Mandiana gold project in Guinea amid a contract row with the general administrator of its Guiord SA unit and is unable to access the project.
According to a Feb. 5 statement, the drill program was supposed to start in January and the necessary arrangements for the campaign were ready for implementation but were delayed after the administrator attempted to force a "totally unacceptable" service contract on Volcanic Gold.
Volcanic Gold said it is taking steps to resolve the matter, including a corporate restructuring of its Guinean unit, to allow its management to directly conduct Guiord's business and start the planned drill program.
Guiord is 75%-owned by Volcanic Gold, and the remaining stake is held by state-owned Société Guinéenne du Patrimoine Minier.
