Another setback for Xtract Resources at Chile facility

Xtract Resources was looking at another setback at its Chipeca Gold Mine in Chile on Wednesday, a month after two fatal accidents saw its processing plant operations there temporarily suspended by authorities.

The AIM-traded resources firm had previously indicated that it expected approval by the Chilean Inspector of Mines to restart the processing plant to be completed by 20 January.

Xtract said all work required by the Inspector of Mines and the Inspector of Work had been agreed and completed, however the company was subsequently informed that the Inspector of Mines was needed to visit the mine to provide final sign off on the changes implemented.

The company said it had now been advised that the inspector had to reschedule his visit to Chepica, which was now confirmed for 1 February. It remained fully expected that the mine would be granted approval to restart the plant on this date.

"Although we have lost a full month of production in terms of the sale of concentrate, and therefore revenue, we continue to stockpile ore", said Xtract Resources CEO Jan Nelson.

"Whilst the situation is frustrating to management and shareholders, our immediate focus is to get approval to restart the processing plant", Nelson added.

Work was stopped at the Chepica Gold Mine on Christmas Eve last year, after two fatal accidents on the same day.

The accidents occurred when a trainee entered a restricted area without the necessary safety equipment for what the company described as an "unexplained reason" at the time. The shift supervisor attempted to rescue the trainee, but was also fatally injured.