Canada's Mining Americas Secures Key Permits for Gold Project in Mexico

en.Wedoany.com Reported - On September 3, Canadian mining company Mining Americas confirmed that Mexico's Ministry of Environment and Natural Resources (SEMARNAT) has approved two key permits for its wholly-owned Cerro de Oro open-pit gold project: the Land Use Change Permit (ETJ-CUS) and the Environmental Impact Assessment (MIA). The project is located in the northern part of Zacatecas State and is planned to utilize open-pit mining and heap leaching processes.

Mining Americas stated that after completing the payment of ETJ-CUS-related fees and making the permit officially effective in the near term, it will initiate detailed planning to advance the project toward the construction decision stage, while continuing to process other ancillary permits, licenses, and approvals required for construction and operation. The company will also reassess the detailed engineering design and mine plan in light of current gold prices, and prepare for a new round of drilling to supplement metallurgical testing and test mineralization extensions below the depth of existing resources. The currently confirmed mineralization remains open below the approximately 130-meter resource depth.

The Cerro de Oro project covers an area of approximately 6,500 hectares. The company's previously published resource estimate indicates that the project hosts approximately 67 million tonnes of inferred mineral resources at an average gold grade of 0.37 grams per tonne, containing approximately 790,000 ounces of gold. The 2023 preliminary economic assessment was based on a gold price of $1,600 per ounce, planning a mine life of 8.2 years with an average mining and processing capacity of approximately 20,000 tonnes per day. It is expected to produce approximately 477,000 ounces of gold over the full mine life, with an average annual production of approximately 58,400 ounces, including an average annual production of approximately 65,000 ounces during the first four years of production.

The preliminary economic assessment estimates initial capital expenditures of approximately $28 million, sustaining capital expenditures of approximately $14.7 million, and an average strip ratio of 0.3:1. Mining Americas completed the acquisition agreement for the Cerro de Oro project in September 2020, completed the updated resource estimate and preliminary economic assessment work in 2022, and completed the documentation required to formally enter the project permitting process in April 2023. Following the approval of the MIA and ETJ-CUS, the company plans to evaluate whether to make a formal construction decision in 2027, upon completion of engineering optimization and remaining permitting work.