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.
Canadian Gold Corp. (TSXV: CGC) (formerly Satori Resources) announced the initial results from phase 2 drilling at the former Tartan mine with a hole that assayed 12.7 g/t gold over 3.2 metres within a 25-metre section that averaged 2.7 g/t gold.
By drilling to about 1,000 metres below surface, the company was also able to identify high-grade gold mineralization to at least 415 metres below the current resource estimate. That extends the vertical extent of the high-grade portion by 72%.
“Our latest drill results continue to successfully show that the high-grade gold mineralization at the Main zone extends significantly deeper than the resource estimate and remains open for further expansion,” said Ed Huebert, CEO and president.
A new resource estimate is expected later this year, and the company will use it to begin permitting and engineering activities. The Tartan mine benefits from good road access, renewable electric power, and significant underground and surface infrastructure.
The property is located near Flin Flon, Manitoba. It operated from 1987 through 1989, producing 36,000 oz. of gold. Production ceased due to the prolonged period of low gold prices.
The current indicated resource is 1.2 million tonnes grading 6.32 g/t gold and containing 240,000 oz. The indicated portion is 240,000 tonnes at 4.89 g/t gold (37,000 oz.) A cut-off of 3.0 g/t gold was used.
Canadian Gold continues to drill to expand the resources and perhaps make new discoveries at the Main zone, South zone, and volcanogenic massive sulphide (VMS) target 850 metres northeast of the mine.
