Marcio Fonseca, CEO of GR Silver, has had a plan for the Rosario Mining District, Sinaloa, Mexico.
On February 1, as Fonseca puts it, he iced the cake!! GRSL announced that it had purchased from Mako Mining Corp. a private company, Marlin Gold Mining which owns Mexican company, Oro Gold, which has a 100% interest in nine concessions totaling 104,094.5 ha located adjacent to GR Silver’s existing portfolio of properties.
It is a relatively inexpensive deal: $50,000 and a 1% net smelter return royalty on all concessions owned indirectly by Mako. GR Silver will also negotiate an outstanding mining concession tax liability with the Mexican government.
“We can do this deal because we have been working in Mexico for fifteen years,” said Fonseca. “It is not a deal which would make sense without that experience.”
The core of the Oro Gold properties have had 18 million dollars worth of work done on them. There are 18 silver – gold showings, old workings and significant drilling. There is every indication that the veins GR Silver has identified on its current properties extend into the properties which it is acquiring.
There is another element to GRSL’s acquisition strategy: Mexico has ceased to issue new mining concessions and is not likely to resume for several years, which means that companies who want to explore & mine new projects in Mexico can only make deals on existing concessions. For GRSL, there are core concessions in the land package it is acquiring, and there are also other concessions which will be non core. “We will take what we want and then we’ll see who wants to play,” said Fonseca. “Our upside is that we’ll control the whole strike length in the Rosario District, some 25 to 30 kilometers with parallel structures.”
“Now we have enough for what we want to achieve,” said Fonseca. “We will continue drilling at Plomosas. We will continue to review and release the nearly 300 unreported drill holes on our property. We are executing what we told our investors we were going to do.”