As we pointed out over the weekend, Mexico is the world’s largest silver producer.
In 2019, the country produced 6,300 tons, which was an increase from the previous year.
La Valenciana Mine, Guanajuato
Mexico’s mining history traces back 500 years and continues to be the premier location for producing and discovering high-grade silver deposits.
As many of my readers know, VanGold Mining is an exciting emerging silver name in Mexico.
Throughout 2020, the company has put in real groundwork regarding restoring the company’s flagship asset, El Pinguico.
For new subscribers and followers of the Gold Telegraph, the company’s 100% owned project is located seven kilometers southeast of Guanajuato City.
Guanajuato has a long-rooted history of being the primary silver district in Mexico, as this is where the famous La Valenciana mine resides. This mine began operation in 1774. From then until the early 19th century, it was one of the most productive silver mines globally, accounting for 2/3 of the world’s production at its peak.
Adit of La Valenciana mine
It produced 80% of all silver mined in the state of Guanajuato and one-sixth of all Mexico. For over 250 years, it produced about 30% of the world’s silver.
The El Pinguico project is a former silver producer previously owned by NYSE: “Pinguico Mines Company” until operations ceased in 1913 due to the Mexican Revolution.
If you are new to the story, I highly encourage readers to read the article I wrote on VanGold a few weeks ago, herefor an in-depth look at the company’s value proposition and upcoming catalysts. (https://www.goldtelegraph.com/vangold-mining-continues-to-advance-and-restore-the-pinguico-project/)
Throughout 2020 the company has successfully:
- Completed a successful bulk sample of surface stockpiles (read)
- Completed at $3.6 million financing (read)
- Optioned back royalties to streamline El Pinguico ownership structure (read)
- Reported assays of 536.8 gpt AgEq or 6.71 gpt AuEq over 55m of Vertical Extent (read)
- Purchased an underground drill rig (read)
- Reported continuous channel sample assays up to 1136 gpt AgEq (read)
- Successfully cleared the Pinguico shaft to Adit Level 7 (read)
The company has been incredibly active this year and has knocked off some serious milestones to get the asset to where it is today.
It seems the serious logistical roadblocks are clear, and as we head into the new year, 2021 should be a year of great growth for VanGold.
I recently caught up with the company’s Chairman and CEO, James Anderson, for another update on the company:
Thank you, James, for taking the time to update the Gold Telegraph audience on the exciting VanGold story as the company looks to continue its path of restoring the El Pinguico project.
Can you provide our readers with a general update and touch on the recent news release that continues to showcase the project’s high-grade component? (1136 grams per ton silver in channel sample assays)
We currently have easy access along the number 4 Adit Level for 800m. The stopes above this adit were generally mined out in the 1903-1913 time period. The miners of the time then focused on material further north and deeper – as it was returning higher and higher grades. What they left was all of the material below the #4 Adit Level. The assay data in the last release was from samples generally every 5-10m along the #4 Adit Level.
We can now easily drill this material from 2 cross cuts running at 90 degrees east from the adit. We gave created two drilling stations there, and one more on a short drift parallel to Level 4. We will be able to target both the San Jose vein as well as deeper portions of the El Pinguico vein – with relatively short drill holes. This is a low risk/high reward strategy. (You don’t get those very often!).
The company recently announced that the Pinguico Shaft to Adit Level 7 has been cleared. When does the company plan to begin sampling the bottom of the underground stockpiles?
We first have to remove some rock falls and stabilize several areas along Level 7. I want to emphasize to your readers that is a 110-year-old mine and we need to ensure that all of our work is done in a professional and safe manner. If that takes a few extra days or even a few extra weeks, so be it.
But when I was at Level 7 a week ago, I could see the open stopes and pillars that were left behind by the miners 110 years ago. These areas we feel will have very good grades by today’s standards and we are eager to sample them.
The company strategically acquired a drill rig in September that should be arriving on-site shortly, is that still on track?
The delivery date for our underground drill rig, which we purchased a few months ago, continues to be pushed back. Our new date is the first week in January.
In addition to the underground drilling, does the company plan to conduct a surface drill program in early 2021?
If so, how many meters are planned for this program?
The Veta Madre (Mother Vein) is a regional fault structure that hosts a world-famous silver and gold bearing epithermal system. Well over a billion ounces of silver has been taken from Veta Madre over the centuries and perhaps 6-8 million ounces of gold.
This structure likely crosses our El Pinguico claims at depth; and where it comes in contact with our high angle, high grade vein system is an area that may create the circumstances for a valuable precious metals deposit. This set of conditions was understood by the geologists and engineers c. 1910, however they did not have the drilling technology to test the theory – but we do. We are just now evaluating drilling proposals from contractors (The drill we purchased will not have the depth capacity to test the target), and plan to drill test for the Veta Madre near the end of Q1.
This will be in a surface program of 10-12 holes and about 3600m of drilling.
Thank you for your time, James. I am looking forward to catching up with you in a month’s time.
Legal Notice / Disclaimer
The Gold Telegraph, goldtelegraph.com, hereafter known as Gold Telegraph.
Please read the entire Disclaimer carefully before you use this website or read the newsletter. If you do not agree to all the Gold Telegraph Disclaimer, do not access/read this website/newsletter/article, or any of its pages. By reading/using this Gold Telegraph website/newsletter/article, and whether or not you actually read this Disclaimer, you are deemed to have accepted it.
Any Gold Telegraph document is not, and should not be, construed as an offer to sell or the solicitation of an offer to purchase or subscribe for any investment.
Gold Telegraph has based this document on information obtained from sources he believes to be reliable but which has not been independently verified. Gold Telegraph makes no guarantee, representation or warranty and accepts no responsibility or liability as to its accuracy or completeness. Expressions of opinion are those of Gold Telegraph/Author only and are subject to change without notice.
The Gold Telegraph/Author assumes no warranty, liability or guarantee for the current relevance, correctness or completeness of any information provided within this Report and will not be held liable for the consequence of reliance upon any opinion or statement contained herein or any omission. Furthermore, The Gold Telegraph/Author assumes no liability for any direct or indirect loss or damage or, in particular, for lost profit, which you may incur as a result of the use and existence of the information provided within this The Gold Telegraph/Author report.
The Gold Telegraph/Author is not a registered broker/financial advisor and does not hold any licenses. These are solely personal thoughts and opinions about finance and/or investments – no information posted on this site is to be considered investment advice or a recommendation to do anything involving finance or money aside from performing your own due diligence and consulting with your personal registered broker/financial advisor. You agree that by reading The Gold Telegraph/Author articles, you are acting at your OWN RISK. In no event should The Gold Telegraph/Author be liable for any direct or indirect trading losses caused by any information contained in The Gold Telegraph articles. Information in Gold Telegraph/Author articles is not an offer to sell or a solicitation of an offer to buy any security. The Gold Telegraph/Author is not suggesting the transacting of any financial instruments but does suggest consulting your own registered broker/financial advisor with regards to any such transactions
The author does own shares of VanGold Mining (TSX-V:VGLD). VanGold is a paid advertiser on the Gold Telegraph.