Gold Gets Ready for yet Another Wonder YearBy Alejandro Ehrenberg | Thu, 12/10/2020 - 17:21
The Week in Mining highlights developments in Mexico’s industry, where juniors and major mining companies alike are pushing the project pipeline forward. Also, leading voices in the industry shared their expertise with MBN about Mexico’s up-and-coming lithium companies and what to expect for gold in 2021.
This and more in your weekly mining roundup!
Magna Gold Corp reported drilling results at its La Pima property located in Sonora. The company completed Phase I of its diamond drilling program, which included 1,719m in nine core holes. The program successfully targeted high-grade silver, lead and zinc mineralization.
Reyna Silver announced that it has received drill permits from the Mexican government for the Guigui project in Chihuahua. “We are excited to have received drill permits for Guigui. Our technical team is eager to start drilling, having spent the last six months preparing for the initial 10,000m drill program,” Jorge Monroy, CEO of Reyna Silver, said.
Industrias Peñoles will reactivate its Naica mine in Chihuahua. The company and representatives of the Naica ejido reached an agreement to extract water from the mine and use it for agricultural purposes, which will benefit the municipality and boost the local economy. After major flooding at Naica in January 2015, operations were suspended.
Local authorities have asked the federal government to approve a 2014 decree to protect wildlife at Mazapil, Zacatecas. If approved, the decree would create a nature reserve in Zacatecas, the state with the highest silver production in Mexico. Representatives of the mining industry and some politicians have warned that a nature reserve could negatively affect the economy and mining operations of the state.
President López Obrador said companies in the mining industry owe taxes to the Mexican government. However, according to CAMIMEX, the mining sector pays more than 50 percent of its profits in taxes, which is a determent for investment in the sector.
The Expert Perspective
Armando Alatorre, President of the College of Mining Engineers, Metallurgists and Geologists of Mexico (CIMMGM), writes about how Mexico’s nascent lithium industry is wrapped in a series of misconceptions and sets out to set fact apart from myth. “Today, not a single mine or company is producing any lithium in the country, not a single ton,” he says in his column for MBN.
Terry Heymann, CFO of the World Gold Council, had a conversation about the role of the gold industry in achieving a more sustainable future and what that means for investors. “As investors increasingly factor in ESG risks, the case for holding gold in a diversified portfolio will be even stronger,” Heymann said.
Gold reached unprecedented heights in 2020. Some of the circumstantial factors that pushed the price up are set to fade out in 2021, while most of the fundamental factors will remain. What can investors expect from gold in 2021 and what will that mean for miners?