Mexico’s proposed higher mining royalties could block nearly $7bn in investments
The Mexican government proposed raising mining royalties under the argument that metal prices have risen in recent years.
We will start with a quick look at the chart where we can see that Endeavour Silver Corporation (EXK) has put in a good rally gaining around 22% recently and as we see it once silver prices get going this stock will be one of the winners in this sector.
However, the technical indicators are slightly overbought so there may be a breather, but don’t count on it as silver appears to be powering up for decent fall rally.
Commenting on their latest discovery Bradford Cooke, Chairman and CEO, had this to say:
“These multiple new high grade silver vein targets and property acquisitions expand our land base in the San Pedro area of Guanacevi and offer excellent potential for us to find and develop new high grade silver mineralized zones like our recent discoveries and mine developments at Porvenir Dos and Porvenir Cuatro. Our near-term goal at Guanacevi is to continue boosting our reserves and resources so that we can consider the next expansion program at the mines and plant.”
Endeavour currently owns and operates two high-grade, underground, silver-gold mines in Mexico, the Guanacevi Mines in Durango State and the Guanajuato Mines in Guanajuato State. The Guanacevi Mines produced 622,385 oz silver and 1,602 oz gold (726,515 oz silver equivalents, based on a 65:1 silver:gold ratio) in the 2nd Quarter, 2010, up 40% from Q2, 2009.
The newly identified, north-northeast trending La Blanca and Mi Nina veins are located in the south-western part of the San Pedro area about 2 kilometres northwest of the Porvenir Cuatro mine that Endeavour is now developing at Guanacevi. These veins appear are parallel to and 1 kilometre south of the old El Soto, Desengano and Epsilon mines which produced high grade silver-gold ores historically.
The La Blanca and Mi Nina veins occur parallel to, and in the hanging wall of, the Veronica vein, which Endeavour drilled in 2008. Although the Veronica drill results were spotty, three drill holes also intersected the La Blanca vein and each hole returned economically interesting results, to read their release in full please click here.
Endeavour Silver Corporation is appearing on a screen near you as the company trades on three stock exchanges as follows:
(TSX: EDR)
(NYSE-AMEX: EXK)
(DB-Frankfurt: EJD)
Stay on your toes and have a good one.
Got a comment then please add it to this article, all opinions are welcome and very much appreciated by both our readership and the team here.
We also thought that you might like to know that on Friday, 27th August 2010, we closed another successful trade banking a profit of 79.46% on Call Options on Silver Wheaton.
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