Gold and copper production company Aura Minerals has temporarily suspended all mining activities at the Aranzazu mine located in the north-eastern region of the State of Zacatecas, Mexico.
The Canadian company also deferred all capital projects, including underground development work, and noted that processing of copper concentrate will continue until stockpiles are depleted.
Aura could not internally generate or externally raise the financing required in the current mining and commodity price environment to maintain or expand the current operations, as the majority of site costs at Aranzazu are fixed.
In the first half of this year, the company plans to review mine and develop plans, site costs and capital expenditures for the Aranzazu mine.
Further, Aura Minerals will release a revised bankable NI 43-101 report on the project that may include a smaller scale expansion plan compared with the one included in the preliminary economic assessment in 2012.
Aura Minerals president and CEO Jim Bannantine said: "Although this decision is a difficult and concerning one, in particular for Aranzazu's affected employees and the local community, it will preserve our cash position during these uncertain economic times.
"We will be providing severance benefits in accordance with Mexican law, as well as training and outplacement services for all the employees affected by the suspension."
In order to ensure maintenance of safety, environmental, regulatory and social standards during the suspension, the company will keep its systems and certain personnel in place.
The results of the updated bankable NI 43-101 will be used to secure an additional financing for the re-opening and expansion of the mine.