Bloomberg – Tahoe Resources Inc., the company developing the Escobal silver mine in Guatemala, said two security guards were killed in an ambush at the mine on Jan. 12.

Other Escobal security workers repelled the attackers, the Reno, Nevada-based company said in a statement today. The assault was one of three against mining entities in Guatemala this week, Tahoe said.

“In the last year, numerous businesses have been subjected to intimidation and violence from criminal elements intent on stopping development,” Tahoe said in the statement. “The Company thoroughly rejects the notion that these unprovoked violent acts are justified.”

Goldcorp Inc., the world’s second-largest gold company, is Tahoe’s largest shareholder with a 40 percent stake, according to a Dec. 23, 2010 filing.

Tahoe plans to produce 20 million ounces of silver a year from the mine, which is 70 kilometers (43.5 miles) southeast of Guatemala City, the company said. Tahoe remains on schedule to commission Escobal’s mill in the second half of this year and begin commercial production in early 2014.

Tahoe didn’t receive the final permit required for exploitation of the Escobal project as expected in 2012, the company said. “The Guatemalan President and the Minister of Energy and Mines have reassured us that the license is forthcoming,” Ron Clayton, Tahoe’s chief operating officer, said in the statement.

Barrick Gold Corp. is the world’s largest gold producer by market value.

—Editors: Jessica Resnick-Ault, Jasmina Kelemen

To contact the reporter on this story: Sonja Elmquist in New York at selmquist1 [at] bloomberg [dot] net
To contact the editor responsible for this story: Simon Casey at scasey4 [at] bloomberg [dot] net

———————————————————-

Tahoe Reports Incident and Updates Escobal Project

Marketwire – http://seekingalpha.com/news-article/5283541-tahoe-reports-incident-and-...

14 January 2013

VANCOUVER, BRITISH COLUMBIA — (Marketwire) — 01/14/13 — Tahoe Resources Inc. (TSX: THO)(NYSE: TAHO) regrets to report that a security patrol at the Escobal project in Guatemala was ambushed by armed criminals shortly after midnight on January 12, resulting in the deaths of two contract security guards.

The Escobal security team repelled the attackers who left behind numerous automatic weapons and incendiary devices. According toGuatemala news reports a high-ranking government official close to the investigation stated that this was not a local protest but an organized, nighttime incursion by a well-armed group from outside the area. This was one of three attacks against mining entities in Guatemala during the week.

“One of Tahoe’s top priorities is the health and safety of its employees, contractors and communities,” said Tahoe President and CEO Kevin McArthur. “Our workforce and entire management team are devastated by the deaths and injuries that occurred on January 12. We would like to express our deepest sympathies to the victims and their families,” he added.

In the last year, numerous businesses have been subjected to intimidation and violence from criminal elements intent on stopping development. The Company thoroughly rejects the notion that these unprovoked violent acts are justified and urges the Guatemalan government to thoroughly investigate these crimes and protect human rights and property interests in our local communities.

Permitting & Project Update

The final permit required for exploitation of the Escobal project was not received in 2012 as anticipated. “The Company was notified by the Guatemalan government in the first quarter of 2012 that all legal requirements for approval of the exploitation license have been met. The Guatemalan President and the Minister of Energy and Mines have reassured us that the license is forthcoming,” said Ron Clayton, Tahoe’s Chief Operating Officer. He added that the Company continues to work closely with the government to complete this process and that no delays to the project schedule are expected.

As of December 31, 2012, the Engineering, Procurement and Construction Management (EPCM) was 69% complete and underground development was 70% complete. Mine activities are focused on completion of the 1290 and 1265 level footwall laterals, primary decline development to deeper mine levels, preparation of the initial production stopes, development of ventilation, backfill and other supporting infrastructure, and production miner training.

Activities in the mill are focused on completing installation of structural steel, mechanical equipment, electrical, piping and other services. The Company expects to begin hiring and training process plant employees by the end of the first quarter.

Despite the events in the early morning hours of January 12, construction and development work at Escobal continues. The project remains on schedule for mill commissioning in the second half of 2013 and for commercial production in early 2014.

About Tahoe Resources Inc.

Tahoe’s strategy is to develop the Escobal project into a profitable mining operation and to position itself as a leading silver producer with high quality, low cost assets in the Americas. Tahoe is a member of the S&P/TSX Composite and TSX Global Mining indices and the Russell 3000 on the NYSE (NYX). The Company is listed on the TSX as THO and on the NYSE as TAHO.

Contacts:
Tahoe Resources Inc.
Ira M. Gostin
Vice President Investor Relations
775-448-5807
investors [at] tahoeresourcesinc [dot] com
www.tahoeresourcesinc.com