In its fight against the coronavirus pandemic, the Mexico federal government has mandated all nonessential businesses, including mining, to suspend operations until April 30.

The declaration was made after Mexico’s confirmed cases surpassed 1 000, with deaths now at 37.

It is understood that mining operations deemed to be essential would continue during the health crisis. Toronto-listed Argonaut Gold has confirmed that it is suspending mining, crushing and stacking activities, but given that it operated heap leach mines, metal production and metal sales will continue during the suspension.

Argonaut has to continue to process pregnant solution coming from the heap leach pads for the safety of the environment, president and CEO Pete Dougherty explained in a statement on Wednesday.

The suspension is allowed for in the plan of arrangement between Argonaut and Alio Gold, which earlier this week announced a friendly merger. However, should the suspension be extended to 45 days, Alio would have to the option to withdraw from the transaction.

The same goes for Argonaut – should Alio’s operations be suspended for 45 days, it would have the option to withdraw from the deal.

Argonaut’s portfolio of gold operations include the El Castillo and San Agustin mines, which together form the El Castillo Complex in Durango, Mexico and the La Colorada mine in Sonora, Mexico. Its advanced development stage projects include the Cerro del Gallo project in Guanajuato, Mexico and the Magino project in Ontario, Canada.

Alio owns the Florida Canyon mine, in Nevada, US, and is advancing the Ana Paula project, in Guerrero, Mexico.

"It is important to recognise the seriousness of the Covid-19 pandemic and while we have not experienced a known or suspected case in the company to date, we have been and will continue to take precautionary measures,” said Dougherty.

Like many other mining companies, Argonaut withdrew its full-year guidance across all operations until further notice, citing the uncertainty with respect to future developments of the Covid-19 outbreak, including the duration, severity and scope of the outbreak, the actions taken to contain or treat the outbreak and potential impacts on mining operations.

Meanwhile, Premier Gold Mines confirmed that it was placing the Mercedes mine on care-and-maintenance and noted that limited to work required to prevent irreversible damage to the mine or the surrounding environment would continue.

Pan American also said that it had already moved to reduce the number of people on site to increase physical distancing, but that it would now expand this programme in order to bring its La Colorada and Dolores operations into compliance with the executive order.

The company previously announced the suspension of normal operations at its mines in Peru, Argentina and Bolivia in order to comply with mandatory national quarantines. The governments in those countries have declared that the quarantine periods are extended to April 12, in Peru, April 13, in Argentina and April 15, in Bolivia.

Pan American is continuing to conduct care-and-maintenance at the suspended operations to sustain safety and environmental systems, and to ensure operational readiness when the government restrictions are lifted.

"While Pan American's underground mines affected by the suspensions have ceased to produce metals during this period, limited production continues at the openpit mines from circulation of process solutions on the heap leach pad, which is necessary for care-and-maintenance of the operation."

There are currently no confirmed cases of Covid-19 at any of Pan American's operations.

Several other companies focusing on exploration and developing, including Almaden Minerals and Azucar Minerals, have said that they had already suspended activities to protect their work force.

Almaden, which is pursuing permitting of the Ixtaca project, said that since the courts had been formally suspended until April 20, it was unclear who the legal actions and administrative procedures that it was involved in would unfold.