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Supreme Court orders Mexico officials to declare Almaden’s titles ineffective

21st February 2022

By: Creamer Media Reporter

     

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The Mexican Supreme Court has ordered the Economy Ministry to declare Vancouver-headquartered explorer and developer Almaden’s mineral titles ineffective and to re-issue them once it has complied with an obligation to carry out consultations with indigenous communities.

Almaden’s mineral claims are the basis of a lawsuit against the Mexican government asserting that the country’s mining law is unconstitutional.

In 2019, a lower court in Puebla state, where Almaden’s Ixtaca gold/silver project is located, determined that Mexico’s mining law is unconstitutional because it fails to include provisions requiring consultation with indigenous communities before the granting of a mineral title.

The Supreme Court last week issued a draft decision, which determines that the mineral title law of the country is constitutional, but that before issuing Almaden’s mineral titles, the Ministry should have provided for a consultation procedure with indigenous communities.

Almaden says that it will review the final decision, when it is available, and will interact with government officials and local community officials to understand the impact of the decision on its mineral claims.

The Ixtaca deposit, which Almaden discovered in 2010, hosts a proven and probable reserve containing 1.38-million ounces of gold and 85.1-million ounces of silver (73.1-million tonnes grading 0.59 g/t gold and 36.3 g/t silver).

According to a 2018 feasiblity study, the Ixtaca openpit mine will produce 108 500 oz/y of gold and 7.06-million ounces a year of silver over the first six years. The study had an aftertax net present value of $310-million, at a 5% discount, an aftertax internal rate of return of 42% and a payback period of 1.9 years.

Edited by Creamer Media Reporter

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