The Mexican state of Guanajuato has many claims to fame. It is the birthplace of the well-known muralist Diego Rivera, the center of Mexico’s revolution and the Mexican Struggle of Independence. It is usually the place the nation’s mining sector started, which quickly grew to become a world powerhouse, making Mexico the high silver-producing nation on this planet for twelve consecutive years.
With a wealthy mining historical past that spans almost 5 centuries, Mexico is dwelling to over 20 mines, 13 of which produce silver. These embrace MAG Silver’s (TSX:MAG) Juanicipio mine, McEwen Mining’s (TSX:MUX) El Gallo mine, America Gold and Silver’s (TSX:USA) San Rafael mine and Kootenay Silver’s (TSXV:KTN) Copalito silver-gold challenge.
The nation’s mining business continues to show sturdy progress, with plans to speculate US$5.5 billion by the tip of the yr, representing a 15.2 p.c enhance from 2021. That is regardless of a world recession, rising safety issues and a latest resolution by the federal government to boost taxes and cease granting concessions.
Though the Mexican mining sector is just not with out its challenges, it however stays an extremely engaging goal for mining funding, owing to its established infrastructure, giant expertise pool and free commerce agreements with economies like Canada and america. The event of mining districts similar to Panuco solely add additional promise.
A promising discovery
Though the state of Guanajuato stays one in all Mexico’s principal silver-producing states, it’s removed from the one area that exhibits promise. Lately, close by Sinaloa has turn out to be a hotbed of mining exercise. The historic Panuco mining district particularly has caught the eye of each buyers and mining firms, courtesy of junior mining firm Vizsla Silver (TSXV:VZLA).
In September 2019, Vizsla signed a US$43 million choice settlement within the Panuco district. Located close to the town of Mazatlán in southern Sinaloa, the 6,754 hectare district homes greater than 86 kilometers of complete vein extent, a 500 metric ton per day mill and 35 kilometers of pre-existing underground mines, tailings, amenities, roads, energy and permits. Vizsla has itself famous that the challenge is comparable in measurement and geology to First Majestic Silver’s (TSX:FR) San Dimas mine, thought of by many to be one in all Mexico’s most vital treasured metallic deposits.
When Vizsla started its first drill program on the positioning in early 2020, the outcomes have been middling at finest. For a time, it appeared as if there is perhaps little of word within the area. When COVID-19 pressured a two month shutdown of exploration efforts, the corporate’s geologists took it as a chance to re-evaluate their efforts.
The corporate resumed drilling months later and ultimately found the Napoleon ore physique, which hosted one of many highest-grade silver intercepts in Mexico’s latest historical past.
At present, Vizsla is engaged in a 120,000 meter, 9 drill rig exploration and useful resource enlargement program on the Napoleon vein and the close by Tajitos vein. Unsurprisingly, the challenge has attracted a number of buyers to Panuco, as it’s now clear there may be the potential for district-scale mineralization. Of those, GR Silver Mining (TSXV:GRSL) and Prismo Metals (CSE:PRIZ) are two of probably the most promising.
Main exploration potential
GR Silver already had a powerful presence in Sinaloa earlier than Vizsla’s exploration of Panuco, with a number of gold and silver tasks all through the Rosario mining district — many in shut proximity to Mazatlán. These embrace the 1,250 hectare San Marcial silver challenge, the 8,515 hectare Plomosas gold and silver challenge and the La Trinidad gold mine, acquired in 2021 with GR Silver’s buy of Marlin Gold Mining.
Together with La Trinidad, GR Silver additionally gained possession of 12 extremely potential mining concessions that collectively comprise greater than 107,000 hectares. Different tasks owned and operated by GR Silver embrace El Habal, Yauco, Villa Union and El Placer II, all located inside the Rosario mining district. Notably, Villa Union additionally borders Panuco’s western edge.
Prismo Metals at present maintains two separate mining tasks — Palos Verdes within the Panuco district and Los Pavitos within the Alamos area of southern Sonora.
One of many distinctive features of the Palos Verdes property is that it’s surrounded by Vizsla Silver. Prismo Metals’ CEO acquired the Palos Verdes previous to Vizsla Silver assembling the remainder of the district. Prismo Metals is at present assessing the area with a drilling program set to complete in early November with a deliberate minimal of two,000 meters. The drilling program is designed to check the Palos Verdes vein at depths the place it’s believed that potential for a big ore shoot is current, just like the drilling achieved by Vizsla Silver on its adjoining land bundle.
This program just lately intercepted a large vein construction with vast structural zones intersected at depth the place the vein branches into a number of strands starting from 0.5 meters to 9 meters vast, with slim veins and veinlets separated by andesite wall rock.
Craig Gibson, the president and CEO of Prismo Metals, just lately commented: “Though not but assayed, the broader zones with a number of levels of mineralization gives extra alternatives to come across important high-grade mineralization that the district is understood for. The veins are multistage with a number of crosscutting and brecciation occasions, and exemplary epithermal vein textures are seen within the core. One other new characteristic of those deeper intercepts is the presence of darker grey quartz with sulfides and a few fracture fillings of sulfide minerals with comparatively minor grey quartz fill within the andesitic rocks adjoining to discrete quartz veins.”
Los Pavitos is the bigger of Prismo Metals’ two tasks. Masking 5,829 hectares over a single concession within the Alamos space of Sonora state, the challenge accommodates a number of areas of sturdy oxidation with mineralization that implies both an orogenic gold deposit or an epithermal vein. The corporate notes that it has signed a proper entry settlement with Francisco Villa Ejido, the floor house owners, over the Los Pavitos challenge in Sonora state, Mexico, to permit for exploration work, together with drilling.
Takeaway
The latest discoveries by Vizsla Silver and Prismo Metals’ drill campaigns have generated renewed curiosity on this promising jurisdiction. The Sinaloa area nonetheless represents an extremely engaging goal, with a number of high-potential discovery and exploration tasks. Though these tasks do carry a component of threat, they’re probably outstripped by the potential returns.
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