June 3, 2010 / 9:06 PM / 7 years ago

UPDATE 1-Gammon union workers halt operations at El Cubo

* Says dispute centers around profit sharing agreement

* Says reviewing all avenues of potential legal recourse

TORONTO, June 3 (Reuters) - Gammon Gold GAM.TO, a Canadian precious metals miner, said on Thursday unionized workers at its El Cubo mine in Mexico have disrupted operations following a dispute over a profit-sharing agreement.

The unionized workers are barring contract workers and other union members from entering the mine site, the company said in a statement.

However, the company said the action has not affected operations at the Peregrina mine, located within the El Cubo mine complex.

Gammon, which labeled the union’s actions as illegal, said it is reviewing all avenues of potential legal recourse.

The Halifax, Nova Scotia-based gold producer operates mines that are located all across Mexico.

This year the company expects to produce between 150,000 and 180,000 ounces of gold, along with 6.10 to 6.85 million ounces of silver. (Reporting by Euan Rocha; Editing by Frank McGurty)

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