en.Wedoany.com Reported - Mercado Minerals Ltd. (MERC:CSE; MRMNF:OTCQB; M2R:FSE) has signed two letters of intent to acquire the adjacent San Rafael and La California silver-gold projects in the San Dimas mining district of Durango, Mexico, expanding its footprint in a prolific mining region. The two projects are located on a highly mineralized structural corridor, and their consolidation will create a land package spanning thousands of hectares in the area.
Mercado focuses on silver-gold projects in Mexico, a region with a long mining history and well-established infrastructure. The company's strategy emphasizes scaling up through targeted acquisitions while advancing its existing assets. The San Dimas district has historically produced significant output, with cumulative production exceeding 766 million ounces of silver and 11.1 million ounces of gold as of December 2024.
The proposed acquisition targets assets located within a northwest-trending structural corridor in the Sierra Madre Occidental belt, an area known for low-sulfidation epithermal systems. The San Rafael project comprises five mining claims covering 1,004 hectares. Historical work has identified a structurally controlled, low-sulfidation epithermal gold-silver system with a strike length of up to 4.5 kilometers, including underground development across four levels totaling approximately 400 meters in length. Early surface sampling at the project returned grades of 241 g/t silver and 10.1 g/t gold over 2.15 meters; a 2014 drill hole intersected 180 g/t silver over 0.46 meters. The adjacent La California project spans five mining claims covering 3,613 hectares and hosts a low-sulfidation epithermal system with vein widths ranging from 2 to 10 meters, traced along outcrops for over two kilometers. A historical underground mine operated between 1912 and 1922, equipped with an on-site processing plant. Recent sampling prior to 2000 included a 2.50-meter channel sample grading 380 g/t silver and 1.28 g/t gold. The company notes that these historical results have not been verified by a qualified person and are considered historical data requiring further work.
Under the terms of the letters of intent, Mercado can acquire a 100% interest in both projects through a five-year option agreement, with total cash payments of approximately US$5.6 million, featuring back-loaded payments and no royalties. CEO Daniel Rodriguez stated in a company press release that this is exactly the opportunity the company has been seeking, and it is committed to building a truly district-scale operation with kilometers of cumulative vein strike length and numerous highly attractive targets.
At the broader market level, sustained central bank gold purchases provide structural support for precious metals. According to a report by UBS strategist Joni Teves cited by GoldFix on June 5, based on World Gold Council data, central banks and other official institutions net purchased 244 tonnes of gold in the first quarter of 2026, up 3% year-over-year and exceeding market expectations. The report suggests that while central banks may not be the primary driver of higher gold prices, their continued purchases help limit downside pressure in the market. The report also discussed reserve changes reported by Turkey, noting that fluctuations in reserve figures may be influenced by gold swaps, domestic liquidity operations, and commercial bank activities, and do not necessarily indicate long-term selling. UBS also pointed out that official sector demand is expanding beyond traditional major central bank buyers, with other sovereign entities and previously inactive buyers still entering the market.
According to a CNBC report on June 5, gold is trading near its 200-day moving average while testing the 50% Fibonacci retracement level of its prior rally. Analyst Michael Khouw noted that multiple momentum and trend indicators have weakened, while inflation concerns related to the conflict with Iran have increased expectations of a more hawkish Federal Reserve. On silver, commodity analyst Patrick MontesDeOca wrote in a June 8 report that silver futures are continuing the primary cycle structure that began in September 2025. He stated that silver rose from US$43.47 to US$121.78 between September 2025 and January 2026, a gain of approximately 180%. MontesDeOca described silver as remaining one of the strongest-performing asset classes in the commodity sector, with its price structure driven by monetary demand, industrial consumption, and tightening physical supply. According to silver pricing data released on June 8, spot silver was quoted at US$67.86 per ounce. Historical performance data shows silver has risen 16.35% over the past six months and 88.56% over the past 11 months.
In analyst commentary, Paydirt's Jeff Clark and Daniel Flynn issued a report on June 4 stating that Mercado's proposed acquisition of the San Rafael and La California projects, totaling 4,617 hectares, "has seen little modern exploration," and that historical work provides a promising foundation for re-evaluation. They maintained their previous investment thesis, giving a formal rating of "Recommendation: Buy." Analyst Richard Mills wrote on June 7 that Mercado is expanding its silver-gold footprint in Mexico through the acquisition of two adjacent projects, citing CEO Rodriguez's remarks about building a district-scale operation.
At the Copalito project, Mercado's 3,000-meter diamond drilling program is underway. The company stated that the program aims to test known vein extensions, conduct infill drilling, evaluate deep targets, and drill newly identified targets. The company has received assay results for the first three holes, and Rodriguez noted that the initial results are demonstrating the continuity of the 5 Señores vein and the potential to grow the structure. Mills also cited Rodriguez's statement on April 29, saying the team is pleased with the results seen and has moved on to testing the El Agua vein. Mercado indicated that the 2026 drilling campaign plans to test four high-priority targets at 5 Señores, El Agua, and La Chivas. Additionally, the company is identifying potential exploration targets along the northwest-trending vein extension, supported by drone magnetic and LiDAR surveys.
At the Zamora project, Mercado holds four mining claims covering 378 hectares and has the right to bring an additional 2,999 hectares of claims into good standing. The company reports that the property has over 8 kilometers of cumulative strike length associated with 14 historical silver-gold veins that have not yet been drill-tested. Mercado stated that 2026 activities at Zamora include land consolidation work related to bringing approximately 3,000 hectares of claims into good standing, as well as a systematic sampling program aimed at defining initial drill targets for the 14 high-grade silver-gold veins.
Mercado Minerals Ltd. has a market capitalization of C$16.1 million, with 75 million shares outstanding. The company's 52-week price range is C$0.10 to C$0.49. Management and insiders hold 6.5% of shares, strategic investors hold 27.9%, and retail investors hold the remaining 65.6%.
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