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Another earthquake rocks Westwood

An earthquake on Friday afternoon measuring 3.6 on the Richter scale has prompted Iamgold to suspend mining and milling operations a second time this year at the Westwood mine, in Quebec.
Another earthquake rocks Westwood Another earthquake rocks Westwood Another earthquake rocks Westwood Another earthquake rocks Westwood Another earthquake rocks Westwood

Iamgold has suspended mining and milling operations at Westwood, Quebec, following an earthquake last week

Staff Reporter

The US Geological Survey detected the earthquake, about 35km west-southwest of the mining town of Amos at a depth of 3.5km.

Iamgold said employees were brought to the surface safely and authorities had been notified while the cause of the quake was being studied.

The company is assessing a recovery plan and expects to provide an update when it discloses September-quarter results later this week.

Westwood production was suspended in late March due to COVID-19, and the operation restarted mid-April. For this reason, Iamgold has lowered the mine's full-year production guidance to 85,000-100,000oz from 90,000-110,000oz previously.

In August the company cut Westwood reserves by 48% and outlined a "cautious" approach to a long-term plan for the seismically-compromised operation. The company has been reviewing Westwood and last year recognised a US$395 million impairment owing to the mine operating at reduced capacity after an earthquake late in 2018

Iamgold shares (TSX:IMG) are down 2.2% over the past 12 months at C$4.90, after achieving a 12-month high of $7.07 late in July. The company has a market capitalisation of $2.32 billion (US$1.75 billion).