Mexican mining companies increase budget in 2021

As metal prices rise and some companies increase their budgets, investment in mineral exploration in Mexico will increase in 2021.

Statistics from the website show that of the six large-scale copper, gold and silver projects that have announced exploration plans, four will increase their budgets this year, and the 1x5 project will increase drilling workload but reduce investment.

Exploration is the key to the long-term and healthy development of the mining industry, but in recent years, due to the lack of investor confidence, investment has decreased.

The Mexican Mining Chamber of Commerce estimates that investment in mineral exploration in the country will be about $400 million in 2020, down 4 percent from last year and the lowest since 2006.

The final actual investment figures have not yet been released and may be much lower than this figure, as the Covid-19 epidemic seriously affected investment, and many mines and projects were suspended in April for up to two months, although production resumed in June, but operations were affected by the implementation of new epidemic prevention measures.

Major mining companies in Mexico, including Fresnio (Fresnillo), Southern Copper and Newmont, have not yet released exploration budgets for 2021.

The following is the investment budget of several companies:

1. Shouma Banking (First Majestic Silver): 27.6 million US dollars

Trend: decline

In 2021, the company plans to invest $27.6 million in projects in Mexico, down from a budget of $28.2 million in 2020.

In 2020, the company drilled 38504 meters, slightly less than the planned 38650 meters. The company plans to increase drilling work to 47000 meters this year.

two。 Pan American Bank (Pan American Silver), has a global exploration budget of $42 million

Trend: growth

The company raised its 2021 exploration budget to $42 million from an initial estimate of $3750-$39.5 million in 2020.

Although there is no itemized expenditure plan for mines or the country, it will mainly be invested in the Colorada (La Colorada) skarn project in Mexico in 2021.

The project has a budget of US $7.5 million in 2020 and US $5000-55 million in 2021, of which 22 million is included in the company's 2021 budget.

The company also has mining projects in Peru, Argentina and Bolivia.

3. Fortuna Banking (Fortuna Silver): $10.9 million

Trend: growth

The company plans to invest $10 million in its (San Jose) brown field exploration project in San Jose, Mexico, up from $4.9 million in 2020.

In addition, the company will invest $900000 in encryption drilling.

4. Alamos Gold (Alamos Gold): $9 million

Trend: growth

In 2021, the company plans to invest $9 million in the Muratos (Mulatos) project in Mexico, up from $7 million the previous year.

In this year's budget, a sum of money will be spent on drilling around the Muratos mine and in the area, with a total footage of 19400 meters.

5. Indevo Banking Co., Ltd. (Endeavour Silver): $8.4 million

Trend: growth

The company plans to significantly increase Mexico's exploration budget this year, with an estimated investment of $8.4 million, up from $3.6 million last year.

Of this total, US $2.5 million was invested in the Tronera (Terronera) project, US $2 million was invested in the Guanassewei (Guanacevi) and Parar (Parral) projects, and US $1.9 million was invested in the Boranitos (Bolanitos) project.

The drilling workload is planned to be US $47000 (of which US $16000 is for Tronera, US $11500 for Boranitos and Guanasevi, and 8000 m for Parar).

6. Capston Mining Co., Ltd. (Capstone Mining): $5 million

Trend: decline

In 2021, the company plans to invest $5 million in brownfield exploration at the Kosamin (Cozamin) mine in Mexico, down from $6 million in 2020.

In addition, the company plans to invest $4 million in green space exploration in Mexico and Brazil.

The main green space projects in Mexico are the Donovan 2 (Donovan 2), Lamine (La Mina) and Granadilla (Granadilla) breccia projects.