Fresnillo not suspending operations at Saucito mine

Fresnillo said operations at its Saucito mine in Mexico will not be suspended after a pipeline burst over the weekend.

The silver and gold miner said the incident occurred due to the rupture of a pipeline while non-toxic solution was being pumped from the beneficiation plant to the tailings dam.

Fresnillo does not expect any material financial impact or loss of production as a result of the incident and said an investigation into the cause is underway.

“Following the incident, Fresnillo immediately informed the authorities, who have concluded in their initial review that the situation is of limited scale, and as a result operations have not been and will not be suspended,” the company said.

It added that 85% of the affected area has already been remediated and said it expects to conclude all the remediation activities by Friday.

At 1542 GMT, shares were flat at 668.50p following heavy losses earlier in the session.