Mexico's Mining Concessions Halt Creates Valuable Opportunity for Gold Miners With a Stake in the Land

Nachrichtenquelle: PR Newswire (engl.)
12.11.2020, 14:50  |  873   |   |   

FN Media Group Presents Microsmallcap.com Market Commentary

NEW YORK, Nov. 12, 2020 /PRNewswire/ -- After years of being the world's top silver producer and the second-largest gold producer in Latin America, production rates in Mexico have been dwindling due to crackdowns from the Mexican Government. Despite only roughly 25% of the mineral-rich landscape being explored in detail, a decision by Mexican President Andres Manuel Lopez Obrador has made it near-impossible for new mining companies to gain a stake in the prolific region. Last year, the president said that although his administration will not cancel any current mining concessions, no new mining concessions will be handed out either. The news may not bode well for miners looking to enter the lucrative market, but it creates a sense of exclusivity for miners already in the region like Newmont (NYSE: NEM) (TSX: NGT), Equinox Gold (NYSE: EQX) (TSX: EQX), Argonaut Gold Inc. (TSX:AR), Torex Gold Resources (TSX:TXG) (OTC:TORXF) and particularly for gold exploration company Tarachi Gold Corp. (OTC:TRGGF). (CSE:TRG)

Tarachi Gold Corp. (CSE:TRG) (OTC:TRGGF) was one of the last companies to gain mining concessions in Mexico when it acquired the 2,560-hectare Tarachi project in the Sierra Madre Gold Belt of Eastern Sonora in March 2020. The company could soon increase its land package in Mexico after signing an arm's length agreement with Exploradora Cobre De Bacanoras to acquire a 100% interest in the group of mining concessions known as the Juliana, Juliana No.1, Juliana No.2, and Las Moritas Mining Concessions, which cover a surface area of 1,148.42 hectares.

Tarachi Gold Corp. could also be moving to production sooner than expected after entering into a letter of internet (LOI) with Manto Resources S.A. de C.V. to acquire certain assets related to the Magistral del Oro tailing processing plant. This transformative acquisition would allow Tarachi to potentially enter near term production and generate free cash flow.

Hunting for High-Grade Gold in the Shadow of Headframes

Tarachi Gold's project lies in an established gold producing region that has discovered, defined or produced over 80 million ounces gold and 1.5 billion ounces silver. The property also borders Alamos Gold's Mulatos mine, which has produced over two million ounces of gold and generated more than $400 million in free cash flow since 2005, and Agnico Eagle's La India mine, which contains proven and probable reserves of 500,000 ounces of gold and 1.7 million ounces of silver.

Seite 1 von 5


Torex Gold Resources Aktie jetzt über den Testsieger (Finanztest 11/2020) handeln, ab 0 € auf Smartbroker.de

Diesen Artikel teilen

Schreibe Deinen Kommentar

Bitte melden Sie sich an, um zu kommentieren. Anmelden | Registrieren

 

Disclaimer

Mexico's Mining Concessions Halt Creates Valuable Opportunity for Gold Miners With a Stake in the Land FN Media Group Presents Microsmallcap.com Market Commentary NEW YORK, Nov. 12, 2020 /PRNewswire/ - After years of being the world's top silver producer and the second-largest gold producer in Latin America, production rates in Mexico have been …

Nachrichten des Autors

Titel
Titel
Titel
Titel