Glencairn stock tumbles on cyanide fears

Shares in Glencairn Gold Corp. (TSX: GGG) fell more than 18 per cent this morning after environmental groups warned there could be cyanide seepage and landslides at its Bellavista mine in Costa Rica.

A coalition of environmental and human rights organizations said yesterday it wants Glencairn "to disclose information about suspected cyanide and metals pollution" from the mine, which the company has previously shut down over concerns about the potential impact of ground movements in the area attributed to high levels of rainfall.

Glencairn stock declined 3.5 cents or 18.4 per cent to 15.5 cents with 2.6 million shares changing hands this morning on the Toronto Stock Exchange.

The groups, including the Interamerican Association for Environmental Defense, CEUS del Golfo, Earthworks, Friends of the Earth and MiningWatch Canada, said they are concerned about leakage following a shutdown of the mine in late July.

They say nothing has been done since to stop the mountain from giving way or to prevent ruptures in a liner known as geomembrane used to block cyanide from seeping into the ground.

The groups did not present evidence of leakage, but called on Glencairn for "cleanup and remediation of any current or future contamination," citing fears from "experts familiar with the mine" that cyanide used to extract gold could enter the environment.

Glencairn has promised to monitor earth movements and said in July that some areas of the mine were sliding one centimetre daily.

Gaston Araya, the mine's manager, said the company has been submitting monthly reports on the experts' findings. He declined to describe the findings.

Jose Castro, director of Geology and Mines for Costa Rica's Environment Department, said his office has been monitoring the mine, located in Miramar, about 100 kilometres north of San Jose.

He said there are "little problems in some parts of the mine, but not in the whole mine."

Glencairn estimates there are 365,500 ounces of mineable gold in Bellavista, according to the company's website.