Guerrero Gold Belt Updates Gold EstimatesBy Antonio Trujillo | Thu, 09/30/2021 - 12:15
The Guerrero Gold Belt, one of the country’s most prominent gold deposits, is getting a positive update on its reserve figures.
For approximately three decades of exploration and drilling, the Guerrero Gold Belt has become one of the most mining-exploited areas in Mexico, specifically referring to its extraction of gold. According to David Jones, geologist and a renowned expert in geological formation, the area is probable to hold over 10 million ounces of gold yet to be discovered. This geological formation is approximately 80km in width, and would positions Guerrero as one of the top four gold-producing states in the country, only behind Sonora, and competing with Zacatecas and Chihuahua which, as BNAmericas points out, have had a more productive mining history.
According to Jones, very few or no assets in Mexico can come close to the combined operations of the two most prominent extraction projects in the belt. Torex estimates the El Limón-Guajes mine to yield 430 to 470 thousand ounces of gold this year, positioning itself as the third largest producer in the country, while Equinox adjusted its estimates for the Los Filos mine to anywhere between 50 and 140 thousand ounces this year. The latter mine is planned to be expanded through a current plan carried out by Equinox, while Torex is planning to transfer El Limón to Media Luna by 2024 through a US$496 million investment.
The Guerrero Gold Belt began its development back when Jones started working on it in 1994, when a mere million ounces of gold were discovered. At the time, notes Jones, the region was not all-too interesting or attractive, and the high content of copper got it ignored, but not for long once gold was spotted. “It didn’t take long,” said Jones, “It didn’t take time to find those ounces.” Nowadays, a myriad of companies are working in the region, like Canadian Minaurum Gold, co-founded by Jones.
Jones is confident that findings to date are not the last for the belt and given its 30-year history of exploration and extraction, Jones says he is sure more gold will be found in Los Filos. In addition, Torex’s concessions could contain up to 5 million undiscovered gold ounces.