Vancouver-headquartered Almaden Minerals on Monday clarified that the mineral claims subject to a court ruling about the constitutionality of the Mexican title system did not form part of the current claims covering its Ixtaca deposit.
A lower court in Puebla state had reportedly ruled that Mexico’s mineral title system was unconstitutional because consultation was not required before granting mineral titles. The court suggests that the government should conduct consultation before the granting of mineral titles.
The court ruled that the mineral claims subject to the lawsuit – 14 000 ha – should be held exclusively for Almaden until such time as consultation can be completed. The company noted, however, that these claims had already been voluntarily cancelled.
The current claims covering the Ixtaca deposit are spread across 7 200 ha and Almaden noted that no communities in the area were party to the lawsuit.
Almaden submitted its environmental permit for Ixtaca earlier this year.
The Ixtaca deposit has the potential to produce 203 000 oz/y of gold-equivalent in the first six years of operation, according to a 2018 feasibility study. The production is comprised of 108 500 oz/y of gold and 7.06-million ounces a year of silver.
Over its 11-year mine life, the Ixtaca project will produce an average of 90 800 oz/y of gold and 6.14-million ounces a year of silver, at an operating cost of $716/oz of gold equivalent and an all-in sustaining cost of $850/oz of gold equivalent.
Initial production will ramp up to a mill feed rate of 7 650 t/d, followed by an expansion to 15 300 t/d from year five onwards.
The feasibility study is based on an openpit with a proven and probable reserve of 1.39-million ounces of gold and 85.2-million ounces of silver.