2016 Shines for Silver Explorers and Miners in Mexico

Special News Feature from Resource Review
Vancouver B.C. July 12, 2016 – After dropping below $14 USD per ounce in January following a five-year decline, silver prices have been going from strength to strength in 2016, nudging $20.40 USD per ounce as of July 11. Whether you call it tenacity or just plain stubborn, the silver explorers and miners who have stuck it out in Mexico, the number one silver-producing country in the world, are emerging from the dark days of the downturn with renewed enthusiasm.
This market turnaround means that Mexico is buzzing with new exploration activity, resource definition, mine development and expansion, along with a number of funding announcements, mergers and acquisitions and company changes. Good news has been pouring out of Mexico in the second quarter of 2016.
“Those of us who have been sitting on quality assets are more than ready to dive in and define and develop those assets, now that the price of silver is on the rise,” says James McDonald, President and CEO of Kootenay Silver Inc. (TSX: KTN). As a seasoned geologist with over 15 years of experience in Mexico, McDonald says maintaining a strong balance sheet in challenging markets is a key factor for survival. Says McDonald “Through consolidation, we have continued to grow our silver asset base and maintain a healthy treasury, which has really allowed us to operate from a position of strength.”
Last month, Kootenay Silver announced a 3000 meter drilling program on their La Cigarra silver project in Chihauhau, Mexico. La Cigarra, scooped up by Kootenay during a merger with Northair Silver Corp. earlier in 2016, currently contains a 51 million ounce measured and indicated NI 43-101 silver resource. The project has another 11.5 million ounces of silver in the inferred category. Combined with Kootenay’s 92 million ounce silver equivalent Promontorio resource in Sonora, Mexico, the company now boasts a NI 43-101 silver asset base upwards of 140 million ounces of contained silver.
Kootenay also received a boost from silver giant Pan American Silver Corp. (NASDAQ: PAAS; TSX: PAA) in April 2016 when a major option deal was announced to advance its Promontorio – La Negra silver discovery. The agreement includes $16 million in cash commitments and a carried interest to silver production. On July 7, 2016 Kootenay announced Pan American has begun a 3400 meter diamond drill program on La Negra to begin defining the scope and size of the silver resource. Not surprisingly, recent moves by Kootenay has resulted in strong gains in the market, with its stock up over 100% on the year, hitting a new high for the year of $0.48 on July 11, 2016.
In other news, Pan American reports that they are on track to increase production at their La Colorada underground silver mine in the Sierra Madre mountain range in Zacatecas, and will be bringing their Dolores open pit silver-gold mine, located in the Sierra Madre mountain range in Chihuahua, up to full capacity by the end of 2017.
Also, Mexican silver miner, First Majestic Silver Corp. (NYSE: AG; TSX: FR) recently announced that it closed a deal with financiers to upgrade the mill at their La Guitarra mine, advance roasting analysis and testing at the La Encantada mine in northern Mexico and increase development and exploration across the company’s six operating mines. Trading at $19.25, First Majestic is Mexico’s star performer, rising sharply along with silver prices, up over 325% in value since January 2016.
In addition, junior Mexican explorer Aura Silver Resources Inc (TSX-V: AUU) announced that they have consolidated 100% ownership of the Taviche Project in Oaxaca State, Mexico, extinguishing the joint venture agreement with Intrepid Mines Limited.
Whether the price of silver is on a steady journey to $25 USD per ounce by the end of the year, or taking staccato steps over the next 18 months, specialists predict that metal prices are recovering. The news out of Mexico from silver explorers and miners in the first half of 2016 point to a silver renaissance, but the true pulse of the industry tends to be measured in meters.
“Since the beginning of the year, drilling activity has really heated up in all regions of Mexico and with the rise in metal prices, all signs point to that trend continuing into the third quarter and beyond” says Roger Girard, President of B.D. Drilling of Guadalajara, Mexico.