Canadian miners optimistic about progress at Mexican projects

Canadian miners GoGold Resources and Sonoro Gold are optimistic about the progress of their projects in Mexico, despite the unfavorable mining industry policies that have prevailed since former president Andrés Manuel López Obrador took office in 2018.

The policy of freezing concession awarding, combined with a slowdown in permitting processes, has continued to hinder the mining industry's performance.

The May 2023 reforms, which gave Mexico’s geological service (SGM) exclusive exploration rights, have further complicated private sector participation and affected the search for minerals.

Brad Langille, CEO of Halifax-based GoGold, said in a statement that “our expectation is that we will receive a positive outcome on our permit application for our underground mine at Los Ricos South by the end of March 2025.”

The company operates the Parral tailings mine in Chihuahua state and has the US$148mn Los Ricos South and US$221mn Los Ricos North exploration projects in Jalisco.

“We believe Parral will prove to be a significant source of additional capital as we embark on anticipated construction of Los Ricos South,” said Langille.

The CEO detailed several key milestones that the miner expects to reach in 2025.

They are:

– Parral’s contribution to GoGold’s cash balance leading up to and during construction of Los Ricos South;

– imminent release of Los Ricos South’s definitive feasibility study (DFS);

– entering into a definitive agreement on project financing for the balance of funds required for construction of Los Ricos South, as talks with prospective lenders are positive and in advanced stages;

– a positive construction decision of Los Ricos South after the DFS, permits and financing are in place;

– continue Los Ricos South near mine exploration, targeting growth in resources during the anticipated construction phase of the mine. 

Additionally, the company expects to upgrade Los Ricos North with more drilling, advancing engineering and technical reports, aimed at reaching the mine permitting stage.

Sonoro Gold

Vancouver-based Sonoro Gold said in a LinkedIn post that “Mexico's mining sector enters 2025 with renewed optimism as the new administration shows openness to dialogue on key industry matters. This evolving landscape strengthens Sonoro Gold's prospects and ongoing projects in the country.”

President Claudia Sheinbaum took office on October 1. 

Located in one of Mexico’s top mining hubs, US$15.5mn Cerro Caliche in Sonora state “is on track to advance with the support of Sonora’s pro-mining climate,” the miner said. “Our open-pit, heap leach mining plan aims to finance expansion, with new drilling set to enhance gold reserves and project value for long-term growth.”

The Cerro Caliche gold project is in the final permitting stage to develop an initial 12,000t/d heap leach mining operation, near other gold-silver operations. 

With only 30% of the property’s identified mineralized zones drilled and assayed, the company filed an updated mineral resource estimate in March 2023.

In October 2023, Sonoro Gold filed a new preliminary economic assessment, demonstrating the potential viability for a nine-year open pit, heap leach mining operation.