The global health crisis may have contributed to a decline in the demand for silver, but 2021 has reignited optimism with experts predicting that the demand for the white metal will rise to 1.025 billion ounces, the highest level in eight years. Silver will continue being valuable and in demand thanks to the current economic conditions in developed countries, its role as a safe haven investment and its function in the development of manufactured products. With silver prices continuing to stay elevated, countries like Mexico have experienced a boom in the exploration of silver and the development of mining projects. Some of the active mining stocks include Minaurum Gold Inc. (TSXV:MGG) (OTCQX:MMRGF), Hecla Mining (NYSE:HL), Fortuna Silver Mines (NYSE:FSM), First Majestic Silver (TSX:FRI) (NYSE:AG), and Blackrock Silver (TSXV:BRC) (OTC:BKRRF).
Leading Mexican silver and gold exploration company Minaurum Gold Inc. (TSXV:MGG) (OTCQX:MMRGF) is focused on building an exploration portfolio with the potential for district-scale gold, silver and copper discoveries in three key regions: Southern Sonora State (SSS), Oaxaca Region (OXR) and the Guerrero Gold Belt (GGB). On May 18, Minaurum Gold released a corporate update on its exploration activities. Among the projects currently underway since the beginning of 2021 is the Alamos Silver project and the Santa Marta copper-gold volcanogenic massive sulfide project.
Minaurum’s Alamos silver project is located in the silver-mining region of Alamos Mining District in southern Senora state. Minaurum has completed 30,000 m of drilling in Alamos’ high-grade epithermal vein system and has discovered 26 separate vein zones in Phase I of the project. Phase II of the Alamos silver project will focus on systematically expanding the silver veins discovered in the first phase and progress with exploratory drilling to discover new silver shoots.
The 6,410 hectare Santa Marta project hosts a major copper-gold VMS exploration target traced over a 900 metres with historical and Minaurum sampling returning copper values ranging from 1.0 to 11% copper. As one of the foremost VMS experts with over 40 years in the study of VMS deposits, Dr. Jim Franklin’s opinion is that “Santa Marta appears to have all of the classic features of highly productive VMS systems, such as the semi-continuous deposit set at Flin Flon comprised of the Main Mine, Calinan, and Triple 7.” Minaurum has designed an initial drill program and submitted a drill permit for environmental approval.
Minaurum has also entered into joint ventures with other silver miners in projects such as the Taviche silver-gold project in collaboration with Fortuna Silver. In the project, Fortuna can obtain an 80% interest by completing cash payments totaling $1,450,000 and incurring USD 4M in work expenditures over three years. Drilling at the Taviche project is expected to commence in late 2021. Taviche is located next door to Fortuna’s largest silver mine, the San Jose mine.
Other mining projects the company is working on include:
- The Aurena project
- The Biricu and Vuelcos del Destino projects
- The Adelita copper-gold project being advanced by Infinitum Copper Corp
Minaurum intends to commercialize its district-scale projects due to the growing demand for precious metals. The company has already signed two Option agreements and is in negotiations to complete more agreements. Minaurum announced this year’s first Option agreement with Fortuna Silver Mines for the Taviche mining project on January 7. The company announced the second option agreement with Infinitum Copper Corp for a joint venture on the Adelita Copper-gold project on March 9.
Exploration Activity on the Rise
Hecla Mining (NYSE:HL) also released its exploration report for the first quarter. According to the report, the company’s exploration efforts at Green Racer Sinter resulted in the discovery of high-grade gold and silver mineralization in the Sinter Vein making it “one of the best exploration drill holes in North America in the past year”. The increased activity in exploration led to expenditures of $6.0 million in the first quarter and the company plans to increase its 2021 exploration expenditure following an increase in drilling activities at the Hecla mines. In addition to the company’s exploration efforts at Midas, Hecla also focused its exploration efforts on two core rigs at San Sebastian through its Short Vertical Reverse Circulation drilling program.
Fortuna Silver Mines (NYSE:FSM) and Roxgold Inc. have begun filing and mailing the management circulars and meeting materials for their shareholder meetings to approve the proposed business combination between the two companies. Fortuna and Roxgold announced the proposed business combination to create a low-cost intermediate global producer of precious metals. The meetings will be held on June 28, 2021, through a virtual-only format to mitigate the risks of COVID-19 to the stakeholders. All shareholders will have an equal opportunity to participate in their respective shareholder meetings. Anticipating the completion of the transaction, Fortuna has announced that Kate Harcourt, the current director of Roxgold will be appointed as a member of the Board of directors.
First Majestic Silver (NYSE:AG) (TSX:FRI) has announced a C$ 1.3 million investment in Blackrock Silver, an exploration company with a portfolio of gold and silver properties in Nevada. First Majestic currently has three silver mines in Mexico and a recently acquired goldmine in Nevada. The investment agreement involves the private placement of 2,666,666 units. The offering is scheduled for closing on June 8, 2021, subject to conditions such as receipt of the necessary approvals including the approval of the TSX venture exchange. The offering will be subject to a hold of four months and a day from the date of closing.
Blackrock Silver (TSXV:BRC) (OTC:BKRRF) announced more high-grade gold and silver intercepts from its core and RC drilling program on its Tonopah West project in Nevada. The company has completed 53,000 meters of drilling in less than a year and identified ten high-grade veins of between 400 meters and up to 1.5 kilometers in the strike. On the Merton vein, the company has discovered two distinct high-grade zones. This vein is part of the company’s DPB target that forms the basis of the company’s maiden resource estimate planned for delivery by the end of the year. The company’s impressive exploration results give investors “a lot to look forward to in the near term.”
As the demand for silver and other precious metals increases, companies like Minaurum Gold Inc. (TSXV:MGG) (OTCQX:MMRGF) are taking steps towards exploring mineral veins and forming key partnerships to facilitate their exploration and mining activities.
To learn more about Minaurum Gold Inc, click here.
Featured Image: Depositphotos ©kelpfish
