Sonoro Gold Corp Updates Shareholders on Mexican Mining Policy and Cerro Caliche Project Prospects
Vancouver, Canada
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July 10, 2024 12:13 PM Eastern Daylight Time
Sonoro Gold Corp Chairman John Darch joined Steve Darling from Proactive to discuss a recent letter to shareholders in which he provides several key company updates. A primary focus of the letter is the new regime in Mexico, which appears to be taking a different approach to mining compared to previous administrations. While Mexico’s mining sector has been unsettled by the former president’s proposed constitutional amendment to ban open-pit mining, the incoming Sheinbaum administration is expected to adopt a more favorable stance towards the extractive industry.
Darch referenced a recent article by industry analyst Fernando Mares of Mexico Business, which highlighted the positive reception of moderates Marcelo Ebrard and Alicia Bárcena being appointed to lead the Ministry of Economy and SEMARNAT, respectively. This shift is anticipated to bring more clarity to the mining sector over the next few months, offering insights into how Mexico’s new political landscape will impact mining development. Sonoro Gold Corp’s Cerro Caliche concessions are owned by the company, and any proposed ban on new open-pit concessions is unlikely to affect the future expansion of the project’s resource.
Darch also shared updates from the company’s 2023 Preliminary Economic Assessment (PEA), which estimated that the Cerro Caliche project’s current resources could potentially support an initial nine-year open-pit heap leach mining operation. The PEA used a base gold price of $1,800 per ounce, but with gold prices reaching an all-time high of $2,450 per ounce in May 2024, the project’s potential economics have significantly improved. The project has a Pre-Tax Net Present Value (NPV5) of $116.8 million with an Internal Rate of Return (IRR) of 85%. Using a gold price of $2,400 per ounce, an internal review estimates that the project’s Pre-Tax NPV5 increases to $203.7 million with an IRR of 129%.
These updates underscore Sonoro Gold Corp’s strategic positioning and the robust potential of the Cerro Caliche project amid evolving regulatory and market conditions.
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