Breakwater suspends mining at El Mochito

Mechanical problems at the El Mochito polymetallic mine in Honduras have forced operator Breakwater Resources (TSE) to temporarily suspend operations until repairs can be completed. The company expects production to resume by early November after mechanical problems affecting the mine’s hoisting equipment are repaired. J.S. Redpath and Nordberg Machinery have already been mobilized to the site.

Breakwater acquired El Mochito when it merged with American Pacific Mining earlier this year. The acquisition is one of several recent initiatives that have taken Breakwater from a holding company with one main asset (a 49% interest in the Cannon gold mine in Washington State), to an operating company with mines in Canada, the U.S. and Latin America. At the same time, the company has dramatically increased its exposure to base metals.

Zinc is the primary metal produced at El Mochito, although the underground operation also produces silver, gold, lead and copper. Within the next 6-9 months, Breakwater hopes to increase throughput to 2,000 tonnes per day through operating refinements which will not require additional capital expenditures.

Corona (TSE) currently owns about 27% of Breakwater (as at Sept. 30), and the company has publicly stated its intention to increase this position.

In recent weeks, shares of Breakwater have been actively traded on The Toronto Stock Exchange. The company was among the more active issues in the week ended Oct. 19, gaining 11 cents to 90 cents. At press time the issue reached 97 cents in its 52-week range of 70 cents to $3.60.