iner VenRus will not be mining in the Guariche zone of Venezuela's Bolivar state, company president Laura Paredes told BNamericas.

"In the short-term, we don't have any plans at all in Guariche. In fact, the national guard is getting rid of the informal miners there because environmental regulations are very strict," Paredes said.

VenRus is a JV between the Venezuelan state and a Russian state-owned corporation that has the Block B deposit, comprising the La Laguna, Santa Rita, Panama and Isidora gold mines.

"Hecla handed over these areas to the new company and the Guariche concessions came under the control of VenRus," a spokesperson for Venezuela's basic industry and mining ministry (Mibam) told BNamericas.

Block B was previously operated by Hecla Venezolana, a subsidiary of US company Hecla Mining (NYSE: HL).

ENVIRONMENTAL RESTRICTONS

VenRus' decision not to mine at Guariche is due to the restrictions Mibam placed on Bolivar's gold and diamond areas to get control of the deposits and regulate mining in the region.

"Many people from Guariche have asked if mining there is going to become legal or not. For now it is impossible to mine in that area because the EISs cost a lot of money. We are offering to mine the other areas as an alternative," Paredes said.

The area is also not being considered as environment ministry MinAmb's new demarcation protects it as a national reserve.

The Guariche project is located close to the Canaima national park.