PDAC-Gammon Gold unsure when El Cubo mine will resume

Mon Mar 7, 2011 5:48pm EST

* Eight-month strike ended last month

* Company evaluating damage, vandalism to mine

* Toronto-based Gammon operates two mines in Mexico

TORONTO, March 7 (Reuters) - Gammon Gold GAM.TO is inspecting the damage done to its El Cubo mine during an 8-month strike but it will be a while before the mine returns to operation, the company's head of exploration said on Monday.

Speaking to Reuters on the sidelines of the Prospectors and Developers Conference (PDAC) in Toronto, Peter Drobeck said workers were now on site following the conclusion of the strike two weeks ago.

"It was mostly petty vandalism. ... They stole wiring and stuff like that," he said. "It's going to take a while." <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

For more stories on PDAC convention: [ID:nN02153893] ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

Workers at the site went on strike in last June after claiming the company had failed to honor a profit-sharing agreement.

El Cubo produced about 28,000 ounces of gold and 1.2 million ounces of silver in 2009, its last full year of operation.

El Cubo is the smaller of the two mines Toronto-based Gammon runs in Mexico. Ocampo is the company's flagship operation.

(Reporting by Cameron French; Editing by Frank McGurty)

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