Gatos Silver mine operations halted after Mexican regulator pulls permit

Apr. 28, 2022 7:00 AM ETGatos Silver, Inc. (GATO), GATO:CABy: Carl Surran, SA News Editor

Mine work underground

sezer66/iStock via Getty Images

Gatos Silver (NYSE:GATO) -5.5% pre-market Thursday after saying it temporarily suspended operations at the Cerro Los Gatos mine due to the suspension of the explosive and blasting permit by Mexico's Ministry of Defense.

The Mexican regulator temporarily suspended the permit on April 21 after a blasting incident during underground development activities where two blasts were detonated prematurely.

The company expects the permit will be reinstated soon and does not expect any material impact to current production plans or annual production guidance.

Gatos Silver (GATO) said recently warned of a potential reduction of the metal content of the mineral reserve at Cerro Los Gatos in the 30%-50% range, Gold Panda writes in an analysis posted recently on Seeking Alpha.

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