The Week in Mining: Coronavirus Jolts Market

The Week in Mining underscores developments in Mexico’s mining industry, where juniors are merging to create new projects and expanding existing ones. Also, global stability received yet another shock as the Coronavirus outbreak rattles commodity markets.  

Mexico

Grupo México presented Plan San Luis, that will turn 470ha of old mining lands into an urban infrastructure project. The initial investment will be of US$50 million.

Mexico-focused junior Minaurum Gold has expanded its position in Sonora by acquiring the 1,229ha Aurifero gold project, which has seen shallow drilling and small-scale mining.

Fortuna Silver Mines has said it is subject to a royalty dispute on its San Jose mine in Oaxaca that could cost US$30 million or even the loss of its concession.

Canadian explorer Mexican Gold Corp has agreed to buy unlisted New Found Gold in an all-scrip transaction that will create a new Canadian explorer and developer called Bonanza King Mining.

Mexus continues progress at Santa Elena mine. Mexus Gold US announced that additional material from the Julio vein has been crushed and placed on the heap leach pad. 

International

China's deepening health crisis is weighing on iron ore and base metal prices. Investors have retreated from wagers on commodities and emerging markets dependent on Chinese consumption. Industrial metal copper slid more than 10 percent.

The Coronavirus outbreak hits mining shares after iron ore falls. Some of the world’s biggest mining companies are battling a plunge in the price of iron ore.

Gold prices edged higher but were buoyed as riskier assets sold off following news of the virus hitting China.