Gold Resource Corporation (NYSEAMERICAN:GORO) announced Wednesday that it has begun to restart its Oaxaca Mining Unit (OMU) operations in Mexico after receiving government approval.
After nearly eight weeks of a government-mandated shutdown due to the coronavirus (COVID-19) pandemic, the miner said it is now gradually ramping up production while focusing on workforce, contractor and community safety.
GORO originally suspended OMU operations on April 1 after the Mexican Ministry of Health proclaimed a national health emergency closing all “non-essential” public and private sector businesses to mitigate the spread and transmission of COVID-19.
In mid-May, the Mexican government designated mining as an essential activity and offered the potential for mining companies to restart operations prior to June 1 if companies submitted an acceptable restart safety protocol.
After reviewing Gold Resource’s safety protocol documentation, the Instituto Mexicano del Seguro Social approved in writing the restart of the OMU operations on May 25.
The company said it is not aware of any COVID-19 cases at its operations and will continue to train, promote, and utilize protective measures for workers and neighboring communities, including screening, physical distancing, deep cleaning, and avoiding exposure for at-risk individuals.
“The company is pleased to be back at work providing a strong economic impact and benefit to the local communities, the state of Oaxaca and the country of Mexico,” Gold Resource said in a statement.
"The ability to be back at work will help counter the economic devastation caused by the pandemic and associated wide-spread business suspensions imposed by the Mexican Government.”
Gold Resource, a gold and silver producer, developer and explorer, also has operations in Nevada and targets low capital expenditure projects with potential for generating high returns on capital. It has returned $114 million to its shareholders in consecutive monthly dividends since July 2010 and offers its shareholders the option to convert their cash dividends into physical gold and silver and take delivery.
The company’s stock recently traded up 1% to $3.88 a share in pre-market trading.
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