Bear Creek’s Mercedes Mine Produced 9,304oz of Gold in 2Q24

Bear Creek Mining announced its production results from the Mercedes mine in Sonora for 2Q24, reporting the production of 9,304oz of gold and 40,893oz of silver. The company views these results as part of a positive trend, noting improvements in gold grades and consistent development progress.

Eric Caba, President and CEO, Bear Creek, said that recent improvements in key metrics such as gold grade and development meters continued during 2Q24. Bear Creek reported production from the Marianas deposit decreased due to the development of a new lateral ramp. However, the ramp’s impact was less significant than expected as the company was able to increase grade and tonnage in other areas. The new lateral ramp is expected to enhance delineation drilling and production from the Marianas deposit later this year and into 2025. 

“(The ramp) is part of a larger strategy to improve the long-term potential of the Mercedes operation. Feeding into that strategy is our recently initiated near-mine and district-wide exploration program that combines traditional exploration techniques with Machine Learning tools to identify new exploration targets. This work has already generated several new near-mine targets undercover that we are actively investigating,” Caba added. 

Additionally, Bear Creek has engaged expert consultants for an intensive exploration initiative to identify new exploration targets within the approximately 70,000ha Mercedes project. Bear Creek is collaborating with a structural geology expert to better understand the controls on mineralization and develop strategies for discovering new ore bodies. 

The company has also started a program to delineate new prospects and potentially new mineral resources near the current operations, followed by work aimed at expanding the understanding of the rest of the Mercedes concessions. This program integrates Machine Learning tools, aeromagnetic survey data, ground-based geochemistry, and geological observations.

The average gold grade of ore processed during 2Q24 was 3.23g/t, continuing the improvement compared to the 2023 average of 2.7g/t. Development totaled 2,569m during 2Q24, consistent with the previous two quarters. A decrease in the tonnage of ore mined and processed led to lower gold and silver production compared to 1Q24. This decrease was due to delays in preparing certain mining faces and equipment availability, as well as rock instability remediations.

The San Martin deposit continued to contribute the majority of Mercedes' 2Q24 mined and processed tonnage, with additional contributions from the Marianas, Diluvio, and Lupita deposits. The San Martin ventilation raise became fully operational during the quarter, supporting production optimization.

Bear Creek decided to discontinue the central ramp development at the Marianas deposit and instead drive a new lateral ramp in more stable rock during 1Q24. This decision was made to address the poor ground conditions, cost overruns, and development delays experienced at Marianas in 2023. Although this change led to a reduction in gold production in mid-2024, it is expected to improve production in the latter half of the year. The new ramp will also enhance infill drilling and development into other Marianas’ orebodies, contributing to 2025 production.