Mexico Will Continue to be a Primary Destination for ExplorationBy Paloma Duran | Tue, 07/06/2021 - 17:05
Q: How have ProDeMin’s strategies shifted over the past six years regarding project development?
A: To become a project developer, we participate in publicly traded companies, including a relatively new publicly traded company called Prismo Metals, which is listed on the Canadian Stock Exchange. We have also expanded our work in the US over the past years. Additionally, we have become more versatile by implementing more technology, such as portable instrumentation like XRF for mineral identification. We are focusing on providing geological and exploration instruments for each project according to our clients’ needs.
Q: How can ProDeMin best assist clients in their ESG practices?
A: We have a different approach to ESG. We focus on field operations and not the more visible variables. Regarding the environment, we contract environmental studies with industry and governmental agencies that are aware of all the regulations and know how to effectively carry out environmental permits. We do everything according to the book and even go beyond the necessary requirements. In addition, we use and promote portable drilling equipment to disturb the surface as little as possible, which facilitates its rehabilitation.
In regard to social matters, we are implementing sustainability programs. In Guerrero, we worked on educational and promotional programs as well as promoting local products. We focus on responsibly maximizing local resources and hope to leave a positive legacy for the locals when the project is completed.
In governance matters, we try to stay above local culture and politics, which sometimes hinder the promotion and implementation of best practices. We provide aid to locals communities while eliminating the risk of corruption and bribery, so instead of giving money to a group of people we provide materials and labor to make sure the funds go to where they are intended.
Q: How is ProDeMin participating in Minera RMG’s operation in Chihuahua?
A: RMG’s project is located in Chihuahua, near the Dolores mine. I was involved in the discovery of Dolores several years ago and was able to identify potential problems for the Sirio project. The project is located in an area with a very small population. We had to build a camp and gather all the staff, as well as introduce rules that would guarantee safety and security. We were looking to have a true relationship with the people, so we incorporated variables that would help them work better. We brought in a kitchen and dining room and hired a nutritionist to incorporate healthy foods. Our main contribution was to efficiently implement and improve the ESG criteria in the project.
Q: What are the company’s next operational steps in that project?
A: We discovered a small copper deposit. It also has potential for a gold operation and some molybdenum mineralization. We are focusing on drilling in the main area of interest to try to find an economic porphyry copper deposit based on geophysics and subsurface geology that is hidden from surface volcanic cover.
Q: In a previous interview, you said Guerrero was arguably Mexico’s most promising state. Does that still stand?
A: The Guerrero gold belt is a phenomenal area for the exploration of important gold deposits. It has some social problems that have affected the development of the region; nevertheless, it remains a key reference for gold exploration. Since our last interview, the gold belt in Sonora has developed further and it is considered a more important area for gold in Mexico.
The recent surge in metal prices is reviving exploration, especially in the north. All the mining districts have been further developed, and in some parts, they remain unexplored in terms of modern exploration. Additionally, exploration is expanding into new areas for battery metals, such as lithium in Sonora and Zacatecas. These factors are benefiting the north of Mexico more than the south, so the main opportunities are there.
Q: What makes Mexico an attractive investment destination for foreign miners and what role does ProDeMin play in helping attract that investment?
A: There are many factors that make Mexico an attractive destination for investments. The geology of the country is very favorable for exploration and many areas still have opportunities to be explored with modern technology. In addition, there are many areas yet to be discovered in Mexico. Some policies have affected the image of the sector; however, the main laws remain unchanged. Mining is a sector that benefits remote areas where there is not much economic activity. Therefore, we must continue to attract investment to help communities. We need to ensure that Mexico is a prime location for foreign investment and new discoveries. In the past, we waited for people to come and hire us. Now, we are more proactive in working as participants in major investments in publicly traded companies. We take a project and bring foreign investors to explore them. We also carry out 43-101 technical reports that allow Canadian companies to come to Mexico and invest more in projects.
Q: How might the exploration landscape evolve after the recent elections?
A: I believe that the change in political power will not lead to a change in the Mining Law in the near future and the outlook is positive for exploration, as there have been significant changes in recent years. There has been less exploration in recent years but without registering a drastic drop and I do not think this will happen anytime soon.
Q: What projects is ProDeMin looking to participate in?
A: We recently became part of a publicly traded company called Prismo Metals, which is a collaboration between ProDeMin, Canadian investors and Minera Cascabel, another of the main services companies in Mexico. We established this company and brought in properties in Sinaloa and Sonora. We are now exploring them to bring these projects to the development stage or perhaps sell them to a third mining company. We will also continue our work in Mexico with Canadian mineral experts while expanding to the US, in Nevada, Arizona, California and New Mexico.
ProDeMin focuses on exploration, discovery and development projects. The company also specializes in project generation and project management.