(Tenoriba Property, Chihuahua State, Mexico via Mammoth Resources. Click to enlarge.)
Mexico is among one of the world’s top mining jurisdictions for silver and gold, and although output in the country decreased in 2020 following COVID-19 lockdown measures, production has completely recovered, consistently reporting year-over-year growth.
Investors eyeing opportunities in the hot gold and silver market may have a lot of options, but few check as many boxes as this precious metal exploration company active in the Americas, specifically Mexico, when it comes to a quality project, solid results, and a stable share structure.
Focused on the acquisition, exploration, and development of precious metal deposits within Mexico and across the Americas,
Mammoth Resources’ (TSX-V: MTH, OTC: MMMRF, Forum) flagship 53 sq km (5,333-hectare) asset is its 100% owned gold-silver with copper,
Tenoriba Project located in the prolific metal producing Sierra Madre Precious Metal Belt (SMPMB) in Chihuahua State, Mexico. The SMPMB is home to numerous deposits that combined have yielded 96 million oz gold equivalent of combined gold and silver.
Project history and highlights:
(Tenoriba Property map via Mammoth Resources illustrating gold equivalent (gold and silver converted to gold at ratio of 75 silver to 1 gold) rock chip and channel sample results/locations. Click to enlarge.)
The Tenoriba property is comprised of 4 concessions, upon which Mammoth has earned a 100% interest, subject to a 2% Net Smelter Return royalty of US$1.5 million payable two years into commercial production.
Prior to the 2022 exploration program, $5.5 million has been spent on Tenoriba, including:
2,600 soil geochemical samples identified a large 15 sq km area (5 km by 3 km) with highly anomalous gold in soil (where anomalous soil sample results are often measured in 10’s or up to 100’s of parts per billion (ppb) Mammoth sampled up to 6,300 ppb gold in soil). In addition, 600 rock chip samples collected with gold-silver concentrated in 3 principle areas along a 5 km east-west trend, open to the east and west. 14 channels were cut for a total of 151 metres along 5 km of strike. 72-line km of IP-Mag surface geophysics performed over 40% of total mineralized surface area. This gold-silver mineralized area remains open to the east and west. 26 diamond drills holes testing areas along a 4 kilometre (km) trend to 150 metre (m) depth, 18 of which are potentially economical, a couple of highlights with respect to grade and interval, include:
- Drill hole TDH - 07 grading 4.0 grams/tonne (g/t) gold over 24.7 metres, and 2.2 kms northeast of this drill hole
- Drill hole TEN 17 - 06 grading 0.52 g/t gold over 126.8 metres
2,600 soil geochemical samples identified a large 15 sq km area (5 km by 3 km) with highly anomalous gold in soil (where anomalous soil sample results are often measured in 10’s or up to 100’s of parts per billion (ppb) Mammoth sampled up to 6,300 ppb gold in soil). In addition, 600 rock chip samples collected with gold-silver concentrated in 3 principle areas along a 5 km east-west trend, open to the east and west. 14 channels were cut for a total of 151 metres along 5 km of strike. 72-line km of IP-Mag surface geophysics performed over 40% of total mineralized surface area. This gold-silver mineralized area remains open to the east and west.
The company’s current $1.5 million drill program is testing mineralized areas along a corridor of surface mineralization and coincident geophysical anomalies. Exploration focused on three areas of gold-silver mineralization over a 6 km strike length. Over the coming weeks and months, more results from this work is expected to be released.
The project had been optioned by
Centerra Gold Inc. (TSX: CG), a public mining company with a $3.7 billion market cap, which was to spend $10 million (USD) to earn 70% interest in Tenoriba over a 7-year option period commencing early 2019.
In
September 2020, after 21 months under the option agreement and having spent $1.2 million and permits submitted for 139 drill holes / two contractors bidding on drill program, Centerra announced they were leaving Mexico, returning 100% of Tenoriba to Mammoth.
Drilling at the project is testing up to 5 large targets that measure from hundreds of metres to 1.2 kilometres in size over a large 18 sq km gold-silver footprint - highest gold-silver sample graded 74 g/t gold - 62 g/t silver. What makes these historic results even more significant, is that they show the potential for a low cost, large scale, open pit mine (abundant surface mineralization) and low-cost heap leaching processing (free gold).
Preliminary results from the Mammoth Resources team efforts to consolidate the historical data generated at Tenoriba noted the presence of a large irregular shaped roughly 5 km by 3 km, generally east -- west striking soil gold anomaly with numerous surface rock samples assaying greater than 5 grams per tonne (g/t) gold up to as high as 23.50 g/t gold (see map above).
Field work to date has confirmed previous geological observations, including the presence of a large area extending over numerous square kilometres of altered Tertiary felsic volcanics intruded by diorite, quartz monzonitic and quartz feldspar intrusives, all characteristics typical of multi-million ounce gold mines in production in the Sierra Madre similar to Tenoriba, these mines owned by some of the largest mining companies in the world the likes of Agnico Eagle, Alamos Gold and Pan American Silver.
Drill results:
In early March 2022, Mammoth Resources reported that it had drilled up to
6.46 g/t gold and 6.4 g/t silver at its Tenoriba Property in Mexico. Then in early April the company announced additional drill results which included gold-silver and copper values over 10’s of metres.
(Location Map via Mammoth Resources, Tenoriba Property Drilling to date, 2022 (drill holes TEN 21-01 to 21-14. Click to enlarge.)
Mammoth Resources’ President and CEO, Thomas Atkins said in a media release on this news that the company continues to intersect potentially economical gold-silver grades over lengthy, tens-of-metre intervals at generally shallow depths in significant step-out distances from prior drilling.
“It’s important to keep in mind that Tenoriba is a very large, at least 4 to 6 km long mineralized system with gold-silver sampled in thousands of surface samples, and as such an excellent candidate for large-scale open-pit mining.”
Initial results from
November 2021 saw 4 diamond drill holes completed totalling 426 metres testing the TA-2 target in the eastern portion (Carneritos area) of the trend.
The Carneritos area remains very prospective and field assessment is underway analyzing drill sections, surface geology, sampling, and geophysics data to assist in defining follow-up drill locations on these targets with additional drilling aimed at assisting in more clearly understanding the size, orientation, and controls to gold-silver mineralization at Carneritos.
Meet the team:
(Image via Mammoth Resources.)
Guided by an experienced technical and business management team with more than 100 years of combined industry, mine finding, and development experience, as well as advancing exploration activities, among a tight group. CEO Atkins is an accomplished mining executive who, over the past 35 years, successfully lead and financed exploration and development programs throughout the Americas.
He has a degree in geology and five years field experience in mineral exploration and mine development , an MBA and has worked as a senior executive in corporate and investment banking, investor relations, corporate development. As a director of investment banking for
CIBC World Markets, he participated in raising more than $1.7 billion in equity and debt for numerous small to large cap companies. Over the past 17 years he has been the CEO of successful early stage development and production stage companies, including former CEO of Rockex Ltd. (now trading as
Rockex Mining Corp. (CSE: RXM), Castle Gold Corp., a gold producer, acquired by
Argonaut Gold (TSX: AR), and
Crowflight Minerals Inc. a nickel exploration and mine development company
(TSX: CML).
Chief Financial Officer Sandra Evans is a financial professional with 30 years experience in the energy, mining, and manufacturing industries. A CPA, CGA trained accountant and has previously served as the CFO for several Venture listed companies, she has more than 15 years of experience in the oil and gas and mining sectors with responsibility for business plans, budgetary control, audits, project management and International Financial Reporting Standards. Her skills incorporate all levels of controllership, treasury, and internal control governance.
Mammoth Resources’ VP Exploration, Richard Simpson, BSC. GEO is a professional geologist with more than 25 years of exploration experience throughout Latin America. A graduate from the Universite de Montreal, he has worked for several companies, both majors, such as
Iamgold Corp. (TSX: IME) and juniors including
Normabec Mining Resources Ltd. (TSX-V: NMB). Early in his career, he has also worked in Northern Quebec (Abitibi), Manitoba and Nunavut on numerous VMS and precious metal projects for Noranda and Aur Resources.
Financials:
(Imagevia Mammoth Resources corporate presentation. Click to enlarge.)
With only 67 million shares outstanding, Mammoth Resources boasts an attractive capital structure. Moreover, the market valuation for the company is impressive, especially considering what the team had spent at Tenoriba defining gold-silver with copper mineralization.
Investment summary:
(Image via Mammoth Resources.)
In an area where projects totalling 40 million oz Au Eq (25 M oz Au / 1.0 B oz Ag) had been discovered over two decades, this represents a compelling investment opportunity with high leverage to exploration success for investors.
Comprised of a highly experienced management team, the company’s focus on gold mineralization with silver and copper in a large gold enriched zone has seen extensive surface mapping, sampling, and geophysics segue to drilling.
As the company continues to develop its valuable Tenoriba Project with an eye on other potential high-quality targets in the Americas, the team leading Mammoth Resources is excited about what the future has in store for their company and its shareholders. Investors new to this story would be wise to deepen their due diligence into what is offered here. This company is set up to excel in the future market and serves as a compelling investment opportunity for both the seasoned investor, and newcomers to the industry.
For more information, visit
mammothresources.ca.
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FULL DISCLOSURE: This is a paid article produced by Stockhouse Publishing.