Revett Minerals (RVM.TO, NYSEMKT:RVM) has updated the market about the operations at their 100% owned Troy Mine in Montana, after announcing a suspension of production last month.
Revett has worked together with NIOSH (National Institute for Occupational Safety and Health) to install seismic monitoring devices. The investigation has been concluded and the ground instability was caused by seismic activity in Montana, which is highly unusual.
The Company will present an inspection and monitoring plan to MSHA this week for approval, as mining operations won’t resume until MSHA has given its nod to go ahead with underground mining activities.
Revett will announce its guidance for 2013 once the operations will have resumed.
We consider this news release to be quite positive. At least now we know what caused the ground instability, and as things seem to have quitened down again, we are hopeful MSHA will quickly approve Revett’s plan, so the silver production can resume within a reasonable timeframe.
Disclosure: Revett Minerals Inc. is a sponsoring company. The author holds a long position and owns naked puts. Please see our disclaimer for current positions.