Durango Mining Outlook - First Look at MMF 2024 PDAC

This is a preview of what’s being discussed at Mexico Mining Forum 2024 PDAC. Don’t miss our upcoming interviews with panelists and guests to get more industry insights.

The Durango government is actively seeking to promote investment in the mining sector to boost its contribution to the local GDP. This development not only stands to benefit the state's economy but also supports the production of essential minerals for the ongoing energy transition.

Durango is a key player in Mexico's mining sector, ranking as the third-largest hub of mining projects in the country. With over 128 mining projects within its territory, Durango closely follows Sonora, which boasts 282 projects, and Chihuahua, with 160 projects.

The state ranks as the second-largest gold producer in the country, contributing 13.5% of the national production. It is also the second-largest silver producer after Zacatecas, accounting for 21.1% of Mexico's silver production. In addition, Durango is the second-largest zinc producer, with a 17% share, just after Zacatecas. Furthermore, the state ranks third in lead production, after Chihuahua and Zacatecas, contributing 9.4% to the national output.

The state stands out in non-metallic minerals, as it ranks first in bentonite, second in perlite, and third in marble and fluorite production. Durango also has deposits of gypsum, clays, limestone, sand, and gravel, which contribute significantly to the state and the country's GDP. 

Furthermore, the state has a consolidated mining cluster composed of several mining companies like Minera Mexicana de Avino (Avino Silver & Gold Mines), Minera Real del Oro (Argonaut Gold), Minerales La Concha, Minera Inde de Durango, Minera Plata del Sur (Southern Silver), Minera Mexicana La Cienega (Fresnillo), Minera El Roble (Industrias Peñoles), Minera Real de la Bufa (Luca Mining), Minera MCL (Unidad El Realito), Minerales del Prado (Chesapeake Gold), Primero Empresa Minera (First Majestic Silver), Industrial Minera Raya (IMIRSA), Minerales de Inguarán, Beneficio de Minerales Herimovi, Beneficios La Luz, Minera La Española, and Minera IGMAR.

Mining Projects Need Investment 
The state has identified promising mining projects requiring investment due to their untapped potential. One such project is the La Mesa project in Pueblo Nuevo, Durango, which includes a mining concession (title number 231790) covering 400ha. Geological studies, along with extension estimates and sampling, suggest the project could yield 2 to 4Mt at 2-5g/t Au and 100-150g/t Ag, aligning with grades seen in similar mineralizations in the Sierra Madre Occidental. Infrastructure plans include a 250t/d beneficiation plant, a 750m airstrip, rest areas, offices, and improved access. The project is also working on connecting to the electricity grid. It has a positive relationship with the local ejido community, actively rehabilitating access roads and preparing new routes for the airstrip and transformation plan.

Another project is Grupo Minermex's La Lechuguilla project, which comprises 10 mining concessions covering 2,000ha. It includes two mines and a flotation-gravity metallurgical plant with a capacity of 90t/d. The mining camp can accommodate 50 people and features a heliport and an airstrip. The project focuses on open-pit mining areas and currently operates a 50t/d beneficiation plant, with plans to increase capacity to 200t/d. Investment objectives for 2024 include doubling production at the metallurgical plant, increasing reserves through exploration, and commissioning a tailings dam with a capacity of 500,000t. The project also considers roads, expanding the mining camp, and purchasing additional mining equipment, with an anticipated investment of US$17.5 million.