I keep thinking about the deal SRGL is evaluating in Mexico, and the more I look at mining in this region, the better I like it.
While Mexico is known for its silver, I believe that some very large gold deposits will also be discovered in Mexico over the next few years. Just consider Newmont Mining’s La Herradura mine.
La Herradura — Newmont's lowest cost gold producer — started out as a three million ounce gold deposit. It has now grown to a six million ounce deposit — and the size of this deposit continues to grow.
I think we are going to see other major discoveries of this type in Mexico as rising gold prices prompt miners to expand their exploration budgets.
Due to its stable political climate and a government that encourages development of the resource industry, more and more junior exploration companies are finding Mexico a highly desirable place to do business.
Drilling can be performed year round, and there is an ample supply of experienced mining people in most areas.
Meanwhile, permitting times can be a fraction of what it takes in most other countries.
Also, most Mexican mines that have gone into production in the past few years have done so at significantly lower cost than you see anywhere else in the world, and that makes Mexico a great place to do business from a cost standpoint.
Administratively, working in Mexico is much easier for mining executives that headquarter out of Canada and or the United States.
Most mining sites have access to good roads, the electrical grid, and experienced personnel.
I am certain I could come up with more reasons to look at this area, but the above paints a pretty good picture already. IMO
AI
