October 28, 2008 / 2:19 PM / 10 years ago

UPDATE 1-Genco Resources' employees walkout at La Guitarra mine

(Recasts, adds details, share movement)

Oct 28 (Reuters) - Mining company Genco Resources Ltd GGC.TO said production at its La Guitarra mine was temporarily suspended following a walkout by employees of its mining contractor, SIMSA.

The company said it does not anticipate a significant negative impact, but warned metal production may be below projected levels depending on the length of the work stoppage.

The stoppage, which occurred while the mine was operating under a mine plan developed when metal prices were significantly higher, may benefit the company due to the current low silver and gold prices, Genco said.

The company said it will explore all necessary options, including replacing SIMSA, if the contractor is unable to reach a settlement with its workers.

The producing La Guitarra silver/gold mine, located in the Temascaltepec mining district of Mexico, is the company’s core asset.

Shares of the company were up 2 cents at C$0.43 Tuesday morning on the Toronto Stock Exchange. (Reporting by Adveith Nair in Bangalore; Editing by Anil D’Silva)

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