Mining Americas Inc. (TSX: MAI) has cleared the last major regulatory hurdle at its Cerro de Oro gold project, receiving approval from Mexico’s federal environmental department for the two permits that development has been waiting on.
SEMARNAT granted the change of land use permit, known as the ETJ-CUS, alongside approval of the environmental impact assessment, or MIA. Together they authorize the company to disturb the ground and build the open pit and heap leach operation contemplated at the property in northern Zacatecas State. Mining Americas still has to make the payments required to ratify the ETJ-CUS.
These are the approvals that typically govern how long a Mexican project sits in the queue, and permitting timelines in the country have been unpredictable enough in recent years that clearing them changes the conversation around an asset.
Sponsored · Selkirk Copper Mines
“Receiving these key permit approvals for our Cerro de Oro project is a momentous occasion and the culmination of years’ worth of diligent work by the Mexican permitting authorities, our team, and our permitting advisors,” said chief executive Darren Blasutti. “This provides a clear path for a significant increase in our gold production over the medium term.”
The company, formerly Minera Alamos, now holds key permits across its entire development pipeline, including the Copperstone underground gold mine in Arizona, which is already in construction, and the Gold Rock heap leach project in Nevada.
Cerro de Oro is a wholly owned, 6,500-hectare property in the Concepcion del Oro district, where gold occurs as disseminations and quartz stockwork associated with a granodiorite stock. The mineralization is low grade and near surface, which is the combination that makes a heap leach worth running.
A 2023 preliminary economic assessment laid out a 20,000 tonne per day open pit feeding heap leach pads, producing 477,000 ounces of gold over 8.2 years at an average of roughly 58,400 ounces annually. Head grade was modelled at 0.37 g/t with 68% recovery, and the strip ratio at 0.3 to 1. Pre-production capital came in at US$28 million including a 30% contingency, with sustaining capital of US$14.7 million and all-in sustaining costs of US$873 per ounce.
That study used a base case gold price of US$1,600 per ounce, far below where the metal trades today. Management intends to advance ancillary permits, drilling and metallurgical work with a view to a construction decision as early as 2027.
Mining Americas last traded at $5.65 on the TSX Venture.
Information for this briefing was found via the sources and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
