Trevali suspends guidance, operations at Caribou zinc mine
Trevali Mining (TSX: TV) announced that its Caribou zinc mine in New Brunswick’s full-year production and cost guidance has been suspended and the operation is under review.
In its Q2 report, the Canadian miner said the halt followed continued operational performance issues due to low productivity rates and equipment and operator availability from the mining contractor.
The company said zinc payable production of 34.5 million pounds for the quarter was due to the suspension of operations at the Perkoa mine and production challenges at the Caribou mine and was partially offset by positive performance from its Rosh Pinah zinc-lead-silver mine in Nambia.
Operations were suspended at the Perkoa mine in Burkina Faso in April, after heavy rains outside the usual rainy season poured about 125 mm of rain in less than an hour, triggering flash floods that breached the open pit at Perkoa, located about 120 km west of the capital of Ouagadougou.
Eight workers were trapped in the mine after the deadly flood and searches were ongoing— the bodies were all recovered in June.
Related: Two Trevali execs arrested in Burkina Faso due to Perkoa mine flood: reports
Trevali said a strategic review process was initiated in Q2, in parallel to the financing initiative, to solicit proposals for a broad range of transaction alternatives including a potential investment in Trevali and the potential sale of all or part of its business and assets. Trevali also said the company was not in a position to make a C$7.5 million payment on its credit facility this week.
Trevali had restarted operations at its Caribou mine near Bathurst in January 2021, after the mine had been on care and maintenance since March 2020.