Minaurum Gold Continues to Build High Potential Property Portfolio
The precious metals market has skyrocketed in 2016. Gold and silver have risen 23.5% and 36% respectively year-to-date. Consequently, the stock price of most mining companies have posted substantial gains since the beginning of the year.
The 3-year bear market in precious metals seems to be in the past, and stocks have returned to more normal valuations. Also the M&A activities and financing opportunities in the sector have returned.
All of this makes it an ideal time to search for mining companies with solid fundamentals and strong upside potential. One such Company is Minaurum Gold Inc (MGG – $0.11).
Minaurum Gold Inc. has developed a portfolio of exploration projects focused on three regions in Mexico: The Guerrero Gold Belt, Oaxaca-Chiapas Region and Southern Sonora State, in cooperation with one of the strongest technical teams in the industry. To date, the Company’s management has been involved with three takeovers including: the $424 million West Timmins merger with Lake Shore Gold; the $140 million Kinross Gold acquisition of Underworld Resources; and the $205 million Agnico Eagle acquisition of Cayden Resources.
Moreover, the Company’s technical team is second to none. David M. Jones, for example, is responsible for discovering Goldcorp’s well-known gold deposit Los Filos. And Dr. Peter Megaw is responsible for the discovery of over 200 million ounces of silver in Mexico.
La Quintera Silver Project
The Company’s most recent property addition, which it just announced this past week, is located in the Southern Sonora State Region. Minaurum has an option to acquire 100% of the La Quintera Silver Project in the historic Alamos District in Sonora, Mexico. The project has excellent infrastructure and is fully permitted from exploration through to production.
The Quintera Silver district, which includes the Promontorio, La Quintera, La Aduana, and Minas Nuevas mines, is estimated to have historically produced more than 120 Moz of silver from about 1680 to the early 1900s. Vein widths average 4m but locally range up to 20m. The primary target vein has a strike length of 3.5km and the entire vein system measures more than 7 km long. Historical records of selective mining indicate grades of over 2,000 g/t Ag were recovered using a cut-off grade of 1,000 g/t Ag.
The property covers 4,698 hectares and is located 8km west of Alamos, 45km northwest of Pan American’s Alamo Dorado silver mine, and 15km south of Cobre Del Mayo’s Piedras Verdes copper mine.
Exploration work done since 2010 includes the identification of 44 historic mine workings and the collection of 334 rock samples of which 97 assayed 100-1,380 g/t Ag and 106 returned values 30 – 100 g/t Ag. Thirteen samples assayed more than 1 g/t gold, the highest gold grade returned was 4.1 g/t Au. Given the historic production of the area, there are existing waste dumps with mineralized material including the Promontorio Waste Dump which hosts 157,728 tonnes grading 169g/t Ag, 0.69g/t Au, 1.61% Pb, 0.77% Cu and 3.12% Zn. It is also estimated that the Quintera dump hosts 66,712 tonnes grading 173g/t Ag, 0.57% Pb and 0.84% Zn (Conducted by Servicio Geológico Mexicano in 2012. Neither of these estimates is NI43-101 compliant).
We understand that more results will be released shortly.
Minaurum Gold is one of those companies that sometimes stay under the radar of resource investors. That’s unfortunate, because it’s building a portfolio of highly attractive properties in Mexico, which continues to be one of the best countries in the world for mining.
Owning high potential properties is one thing, having sufficient money to explore is another. On April 30, 2016, Minaurum had a little over $3.2 million in cash, however, with the potential for another ~$8 million if all the warrants are exercised. The Company has also proven that it can raise substantial funds even in the toughest of times. Between 2014 and 2015, when numerous resource-related companies were having problems raising enough money just to keep their heads above water, Minaurum raised almost $6.5 million. An impressive achievement!
The sample results for the La Quintera silver project is a near-term catalyst for Minaurum. In addition, more work on the other properties will be conducted to unveil their true potential.
Minaurum Gold’s common stock is listed on the TSX Venture Exchange. It has almost 195 million shares outstanding, and the stock’s 52-week range is $0.035 to $0.14.
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