Site visit: Minaurum eyes first resource at Alamos in Mexico within weeks

On a plateau high up in the Alamos mountain ranges of Mexico’s Sonora state, Stephen Maynard casts a sweeping gesture across the valley, indicating where the two main shoots of the Promontorio vein zone intersect at the Alamos silver project. 

Maynard, the vice-president of exploration at Minaurum Gold (TSXV: MGG; US-OTC: MMRGF), sees the potential as the company targets an initial resource by year’s end that might hold 50 million oz. silver-equivalent oz. grading over 300 grams per ton. Four rigs were turning during a November site visit. 

“The dual zone runs right down through the valley – the vein zones are all in the footwall side of that structure,” the executive said, noting Minaurum has identified 26 separate vein zones. “We’ve drilled 19 of them, and have hit significant mineralization in 12 or more.” 

Vancouver-based Minaurum Gold’s Alamos project, initially a small historic district with three known veins, has significantly expanded. After eight years of exploration, the entire project now covers 370 sq. km, and the core 5,000-metre area currently undergoing resource drilling is permitted for underground mining. 

Watch a video of the site visit:

The drill program has already returned high?grade intercepts.

“That maiden resource is going to be developed on just two of the 26 vein zones, so we have considerable potential to expand that resource in the future,” Maynard said.

Last month, Minaurum reported 5.85 metres grading 380 grams silver per tonne (476 grams silver?equivalent) from 373.75 metres depth and 21.45 metres of 54 grams silver and 0.37 gram gold (for 220 grams silver-equivalent) from 156 metres depth.

“Drilling at both Europa and Promontorio continues to confirm the continuation of strong, wide zones of high-grade silver mineralization at depth and along strike,” Minaurum CEO Darrell Rader said in an Oct. 16 release.

Coeur, Agnico

The consolidation potential in the district is high, with tier-one companies working towards production in what amounts to a modern southern Sonora exploration boom.

Coeur Mining (NYSE: CDE) obtained rights to the nearby Las Chispas operation in 2015 and began production in 2022. Agnico Eagle Mines’ (TSX, NYSE: AEM) Pinos Altos mine, just over the Chihuahua state border, produced 88,433 oz. gold last year, with another 80,000 oz. in the current forecast.

The Minaurum team is the same it brought on board from Silvercrest after Coeur acquired it in a $1.7-billion (C$2.4-billion) deal last year. Most recently, the team defined high-grade veins in the historical Las Chispas district.

Maynard has spent more than 30 years on precious-metal exploration, mainly in Latin America. He was instrumental in the discovery of the Cerro de San Pedro gold deposit with Metallica Resources, now part of New Gold (TSX: NGD), and Eldorado Gold’s (TSX: ELD; NYSE: EGO) Efemçukuru gold deposit in Turkey.

The 1-km-long Promontorio zone consists of many veins, where drilling has confirmed significant skarn/carbonate replacement mineralization. This zone, along with Europa, is one of the highest-priority targets. Minaurum has, to date this year, completed 35 holes on the Europa, Promontorio and Travesia vein zones as part of a $9-million, 10,000-metre infill drilling program.

The team is also examining historical workings – outcropping markings above ground and handwritten notes left at key junctures throughout the old mine’s underground workings. 

Silver-rich history

A significant silver boom occurred in the region after Jesuit missionaries discovered rich silver and gold deposits in 1683, and a vein discovered in the 17th century in nearby La Aduana gave rise to the nearby town of Álamos itself. 

The Alamos system produced about 200 million oz. silver from then to the 1910-1920 Mexican Revolution from three separate mines. Historical reports indicate mine widths of up to 20 metres grading more than 2,000 grams silver per tonne and 3-4% copper.

“Álamos exists today because of the bountiful silver mines in the area,” the Alamos History Association reports. Álamos grew into a major mining and religious hub in colonial Mexico, according to historical records. 

During this time, the old Promontorio mine was a continuous producer for over 150 years, with a historic mint record of 46 million oz. of refined silver. 

“When we looked at these articles from a hundred years ago, and we were asking the same questions – I imagine it just evolved that way,” Maynard said. 

Underground, Maynard led the tour group through the old tunnels, pointing to historical exploration evidence along the way – documents pinned to the walls, contained in plastic binders, with sketches of grade findings – signalling where to focus drilling and which areas to pass over. 

Along the path, an altar is carved into the stope wall, with several catholic prayer candles – perhaps a monument to the Jesuit priests who made this discovery centuries ago. 

‘Chuqui’

Resource-definition drilling continues to cut high grades.

A second batch of results last month brought the tally of completed holes to 35 and included 4.8 metres of 154 grams silver (287 grams silver-equivalent) from 334.9 metres depth, including 0.5 metre of 771 grams silver and 0.5 gram gold (for 1,029 grams silver-equivalent) at Promontorio and 3.08 metres of 369 grams silver (for 523 grams silver-equivalent) from 494.45 metres depth at Europa.

In the core shack, Rader and Maynard point out differences between the zones and identify minerals in the laid out drill core. They also proudly display a high-grade specimen embedded in the Promontorio vein – what the locals call a “Chuqui” meaning “the good stuff.”

ESG pitch

Minaurum has strong community relations and ESG credentials.

In addition to being the only permitted “new” silver discovery in Mexico, the company has signed 29-year agreements with local communities, covering exploration through exploitation.

The company is also tying up water resources by considering strategic acquisitions of reservoirs.

The drills turn around the clock, manned by Indigenous staff. Donkeys bring diesel fuel to the rigs high up in the mountains – an homage to the historical mining transport methods.

These docile and well-cared-for creatures each trek up the narrow mountain path with two jerrycans strapped to their backs, leaving the lowest possible environmental impact.

Minaurum plans to raise more funds early next year to support the resource update and fund progress towards outlining 100 million ounces.

The share structure shows more than 400 million shares outstanding, with large holdings by European investors, family offices and private equity groups.

When it comes to resource expansion drilling, as Ryder notes, “We’re not afraid to step out.”