Reactivation at Sinaloa’s Most Significant Gold ProjectMon, 10/21/2013 - 09:29
The Sierra Madre Occidental, a mountain range that covers the main mining regions of Sonora, Chihuahua and Durango, is a famous destination for mining exploration investment. However, many mining companies fail to include the northeastern region of Sinaloa in their plans, even though it is part of the resource-rich mountainous region. DynaResource, a US-based junior exploration company, currently runs operations in one of Sinaloa’s most important mines. The property is called San José de Gracia, which has a historic production of 1 million ounces of gold. Pedro Terán Cruz, the Mexico-based consultant for the company, explains that the business environment in Mexico favored the acquisition of this property. “The support towards the mining industry from one state to another varies significantly. Sinaloa provides a very fast response when companies try to obtain permits and does not impose any kind of restrictions, which is reflected in almost every aspect of the relationship between our company and the government,” he mentions.
DynaResource owns San José de Gracia through its Mexican subsidiary, DynaResource de Mexico. The projects resources amount to 1.2 million ounces of gold, of which 40% are indicated resources and 60% are inferred resources, located on 69,000 hectares of land. “Our plan is to go into production at San José de Gracia by the end of 2013 or the beginning of 2014. Our plan is to start production at San José de Gracia by the end of 2013 or the beginning of 2014. Our annual production goal is 50,000oz for the first two years, and afterwards we are planning to produce 100,000oz per year,” states Terán Cruz. Before beginning operating the company has already established good relationships with the people from the surrounding municipalities. “We have put together a great exploration team consisting of our personnel and of local people, which has turned out to be a great source of knowledge on the terrain and on where to find the best opportunities,” he explains.
“The promising outlook on San José de Gracia has allowed DynaResource to go public on the TSX. We have been lucky to find ourselves in a very promising scenario, and we have the best project in Sinaloa at the moment. We have been doing great with government relations and, in terms of mining, we are at an advanced stage of the process and are very close to starting production,” Terán Cruz says. The mine is expected to have an initial productive life of 10 years, which will likely increase as the company completes more exploration works at the site and its surrounding areas. DynaResource will also continue generating value through its San Juan project, also located in Sinaloa, and through another asset located in San Luis Potosi, close to the famous Peñasquito mine. “We are a team that delivers results and together we have many years of experience in the mining industry. We have a sound project and the right market opportunities exist for us to succeed and become a very profitable company. As soon as we start producing we are expecting a four-or-fivefold increase in our stock market share price,” he adds.