Altaley Mining Corp has engaged MGA Contratista Minera SA de CV as the underground mining contractor for the soon-to-be-operating Tahuehueto gold mine, in north-western Durango state, Mexico.

MGA is, Altaley says, a prominent mining contractor located in Durango city with over 20 years of underground mining  and civil engineering experience. Its clients have included Newmont (Goldcorp), Pan American Silver, Endeavour Silver, Grupo Mexico, Fresnillo, First Majestic Silver, Omega and others.

MGA is now mobilising its mining equipment (including a Caterpillar R1300G LHD and a Komatsu Joy DR-1SB hydrualic jumbo drill) to Tahuehueto to continue underground drift and stope development to advance the mine into production. Previous underground development during 2018 and 2019 completed between 70-80% of required development for the initial one to two years of mine production.

MGA will complete the development work required to initiate mine production and continue as the project’s primary underground mining contractor in the initial years of Tahuehueto’s production.

First production through the mill, which is at an advanced stage of construction, is anticipated near the end of 2021 when the first ball mill is to be commissioned. In the March quarter of 2022, the second ball mill will be installed and brought online to, thereafter, ramp up production to the mine’s anticipated 1,000 t/d capacity.

Altaley said construction at the Tahuehueto mine site is on time and budget, and management is not expecting any cost overruns at this point in time.

Ralph Shearing, CEO and President, stated: “MGA is a highly qualified professional underground mining contractor which ensures that mill feed tonnages will be available to sustain continuous milling operations on an ongoing basis. Altaley is pleased to have secured MGA as Tahuehueto’s underground mining contractor and is counting down the weeks remaining to reach production near the end of this year.”