Foyson Resources says it has been forced to suspend drilling at its Atui project in Papua New Guinea "due to unsatisfactory performance of the contractor".
According to Michael Palmer, Foyson's CEO, "this is a disappointing position for the company".
The miner declined to name either the name of the drilling contractor or the reasons behind the suspension of work at the site.
However it will review the situation in a fortnight before making a decision on whether to terminate the contract.
"Additionally the company will reserve its right to claim for damages against the contractor," Palmer added.