Xtract Resources to restart operations at Chepica gold and copper mine in Chile

14 January 2016 (Last Updated January 14th, 2016 18:30)

Xtract Resources is set to restart operations at its Chepica gold and copper mine in Chile after being cleared by the country's inspector of mines.

Xtract Resources is set to restart operations at its Chepica gold and copper mine in Chile after being cleared by the country's inspector of mines.

The company closed the processing plant at the mine on 29 December 2015 due to two fatal incidents that occurred on the surface within gold processing plant at the mine.

The incidents occurred when a worker undertaking training entered the mine's restricted area without necessary safety equipment. The shift superviser was also fatally injured when he attempted to rescue the worker.

Xtract Resources said that the recommended work has been completed on schedule and the plant is ready to restart operations.

"The company intends to report drilling results from its surface drilling programme before the month-end."

Following the incident, the inspector of works visited the mine and proposed certain additional recommendations.

At present, the company is holding discussions with the inspector of mines and the inspector of works to establish further proposals that need to be implemented.

The final approval for the restarting the processing plant is expected to be in place by no later than 20 January.

Underground mining already restarted at the mine and blasting is continuing without interruption.

Xtract Resources CEO Jan Nelson said: "Management, officials from the Chilean Government and our employees have been working very closely in the last few weeks following the tragic accidents at the mine.

"We are on reef in three ends at much higher grades than anticipated at the Colin prospect and considerable strike-length for mining is available.

"The company also intends to report drilling results from our surface drilling programme before month-end."