One would wonder why miners hunt for a base metal such as gold. It takes extreme effort and months of aggravation just get the stuff out of the earth. Consistent value would be one possible answer, and then only part of the time. Fortunately, once the gold has been found and infrastructure put in place, there it remains waiting for those with the time and money to take it out and profit by it.
U.S. Precious Metals Inc., a gold and base metals exploration and development company, works to develop and exploit mineral deposits primarily in Southern Mexico. The company currently holds concession rights to the La Michoacan Mexico mineral region and exploration drilling rights to 6 other properties nearby.
The company has been concentrating its exploration and development activities at its Michoacan site. Test holes have indicated reserves at the site to be approximately 300,000 oz. of gold, with high levels of associated base metals such as silver and copper. Although the company has based many of its future activities on commodity prices that are higher than today’s, it is confident that it will succeed in completing development activities and mining commencement with available funds.
Perhaps the largest stumbling block to the commencement of mining activities was recently overcome with the environmental permitting of the site by the Mexican government. In a general sense, this permit was crucial to the company moving forward, as there is a great need for road improvement and general mine-site infrastructure creation.
In this regard, the company is making great strides. Its assay equipment has been ordered and its building/venting equipment systems are nearly complete. It does appear that the company’s timing is about right to take advantage of some sort of gold price rebound in the future. Although this is pure speculation at best, gold prices have moved to a new level and should remain in a range that makes mining relatively cost effective. How effective commodity gold prices will make it, however, remains to be seen.
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