Newmont ramping down Peñasquito mine due to Mexico's COVID-19 rules

(Kitco News) - Newmont Corp. (NYSE: NEM, TSX: NGT) is moving to ramp down operations at its Peñasquito mine in the Mexican state of Zacatecas, the company announced late Wednesday. Newmont said it’s too soon to determine how much the ramp-down will impact Peñasquito’s production and costs for 2020.

Last month, Newmont put four other mines on “care and maintenance” and withdrew 2020 production guidance as a result of the COVID-19 outbreak. The deal calls for Evolution to pay Newmont $20 million for each 1 million ounces of new gold resources added to the existing Red Lake resource base over a 15-year period, up to the first 5 million ounces of new resources.

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