RE:RE:RE:way more buyers than sellersCopper coming out of Mexico pretty much come out of the state of Sonora, which lays right up on the US border, South of Arizona. Sonora is responsible for 75% of the copper found in Mexico, which is the third biggest producer in the world. The geology is shared with the U.S. in that Arizona then up thru Nevada are the biggest copper states in the U.S. Think of the old Phelps-Dodge mines in that area. Anyway, copper being volitile in price can get caught in a squeeze. Smaller properties that are economic when discovered, can quickly turn South years later when built. Mexico, has a few of them. The Frontera, Cobre Del Mayo mine is an example. A group called Invecture came in and stole it for like $40 million, put new management in, discovered more ore, and will keep on mining for another 15 years. A company called Mercator Minerals, discovered a property called El Pilar, one of the largest in Mexico, couldn't finance it in the downturn, and went belly up. The deep pockets of Southern Copper scooped it up for $100 million, peanuts in the big picture, and will put it into production this year, and for the next 20-25 more.
So what does that mean to us? Well, I suspect we're taking a page out of their playbook.....buy in for pennies on the dollar, install new management with a little capital, and bingo, you'll have a producing operation in no time at all, while the market for your product is rising. Copper and Gold, like bread and butter. I think I know where they're (management) are going with this Mexican thing, but I'm not so sure that if I float it out there, it will do anybody any good. Might even much things up, so for now, my lips are sealed. What I will say, from my view of the big picture, it will be good. I'm not pumping, I've been here for years, and I think for those on board, you'll be happy you're in. As always, do your own DD, and risk only dollars you can afford to lose.