Canadian miner Vizsla Silver Corp (TSE: VZLA) (NYSE: VZLA) said on Monday that workers abducted from its project site in Concordia, Mexico, have been found dead, following weeks of uncertainty surrounding their disappearance.
Last month, the Vancouver-based company reported that 10 employees had been taken from its Panuco silver project in Mexico’s Sinaloa state. Additionally, Vizsla said it is awaiting formal confirmation from Mexican authorities and will provide further updates as information becomes available.
Shares of the company fell 7.1 per cent in morning trading. Meanwhile, the Panuco mine has remained closed since the kidnapping.
Mexican authorities said on Friday that investigators located at least one body matching the characteristics of a missing mine worker in a clandestine grave near Concordia. Further, officials said the site contained the remains of several other individuals.
Mexico’s Attorney General’s Office said authorities are working to confirm identities and collect forensic evidence from the grave. Additionally, police have not yet formally identified any of the bodies recovered from the area. The grave lies roughly 45 kilometres east of Mazatlan, a Pacific coast city in Sinaloa. Consequently, the discovery intensified fears among families awaiting word about their relatives.
Family members told Reuters that some of the missing workers had received threats from organized crime groups operating in the region. Furthermore, relatives identified the Chapitos faction of the Sinaloa cartel as an active presence near the mine. Mexico’s Security Minister Omar Garcia confirmed last month that the area where the workers vanished falls under Chapitos control. Additionally, the group is led by sons of former drug lord Joaquin “El Chapo” Guzman.
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Family lacked resources to pay ransom
Authorities have not established a motive for the January 23 abduction. However, officials continue to investigate possible links to organized crime activity near the mining site.
Jaime Lopez, the uncle of missing engineer Pablo Osorio, said the family lacked resources to pay any ransom demands. Additionally, he said his nephew accepted the job despite safety concerns because few employers responded to his applications.
Osorio, 26, completed his engineering degree three years ago. Subsequently, the position at the Vizsla mine offered his first stable opportunity. Lopez said he warned his nephew that Concordia was dangerous. However, he said economic necessity ultimately drove the decision.
After learning about the mass grave, Lopez said the family felt overwhelmed and fearful. Meanwhile, relatives continue to wait for confirmation from authorities regarding the identities of the remains.
Mexico’s government deployed more than 1,000 troops, including soldiers and elite marines, to the region over the weekend. Additionally, security forces intensified search operations around Concordia. On Thursday, authorities arrested four suspects in connection with the case. Further, officials said the investigation remains ongoing as forensic teams process evidence from the site.
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