Roundup: Mexico arbitration ruling, La Guitarra milestone, Starcore's reserves
ICSID ruling
The International Centre for Settlement of Investment Disputes (ICSID), part of the World Bank, ordered Mexico to pay compensation of US$37.1 million to US company Odyssey Marine Exploration.
ICSID sided with the company and found that Mexico did not comply with chapter 11 obligations of the North American Free Trade Agreement (NAFTA).
NAFTA was replaced by the USMCA trade agreement in July 2020, but disputes that arose before that date remain subject to the old rules.
“The ruling validates our position that Mexico’s environmental agency Semarnat wrongfully denied our environmental permit, which received extensive input from external advisors and industry experts to determine an economically feasible and environmentally responsible development plan,” CEO and chairman Mark Gordon said in a recent statement.
He added that the project remains strategically significant and commercially viable.
In a joint statement, the economy ministry and Semarnat said they will seek to annul the ruling before the competent courts.
Both entities said that Semarnat did not approve the environmental impact statement between 2016 and 2018 related to the project “Dredging of black phosphatic sands in the Don Diego deposit” in Baja California Sur, which is why Odyssey initiated international arbitration under NAFTA rules.
In the arbitration process, Mexico argued that the project affected an ecologically sensitive area that is home to a variety of species.
According to the statement, the government also provided evidence of the company's lack of mining experience in the sector, as its main activity is the search for marine treasures, and stated that the dredging techniques Odyssey wanted to implement had not been put into practice anywhere in the world.
La Guitarra
Sierra Madre Gold and Silver reported that it has generated revenues of US$2.4mn since the start of the mining and milling test phase on June 25 at the La Guitarra mining complex in Mexico state.
Daily throughput rates of economically interesting silver and gold mineralization have averaged 350t/d over the past 30 days.
CFO Ken Scott said in a statement that “our next test mining and processing goal is 400t/d, followed by commercial production of 500t/d before year-end,” adding that the revenue marks an important financial milestone for Sierra Madre.
Test mining and processing has been in continuous operation since June, and a total of 27,990t of material containing economically interesting silver-gold mineralization has been processed through September 20.
Additionally, the miner said eight shipments totaling 466 dry tonnes of silver-gold concentrate have been delivered to MRI Trading.
Starcore
Canada's Starcore International Mines increased its mineral reserve and resource estimates for the San Martín mine in Querétaro state.
The company estimates proven and probable reserves contain 96,298oz of gold and 710,435oz of silver, for a total of 104,962oz gold equivalent.
It also estimates that measured and indicated mineral resources total 97,396oz gold and 720,623oz silver, for a total of 106,185oz gold equivalent.
Finally, inferred mineral resources are estimated to total 47,972oz gold and 355,856oz silver, giving a total of 52,312oz gold equivalent.
The updated estimates are net of production from the San Martín property.
COO Salvador Garcia said in a press release that “with this updated estimate, Starcore has increased San Martín’s mineral reserves since operations began in 2008, adding approximately (to date) 286,112oz before mining depletion.”
“Our 2023 conversion drilling program has enabled us to grow our reserves and measured and indicated resources. Based on planned conversion and exploration programs for 2024, I am very excited for the potential to add more ounces over the coming year,” he said.
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News in: Mining & Metals (Mexico)
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