Mexico has been a well-known silver producer for quite some time now. However, it is slowly becoming a key player in the market for gold as well, especially after an exploration boom at gold mining district located in the south of the country the Guerrero Gold Belt.
Price hikes have led many companies to mine aggressively in this challenging area of Mexico’s terrain. In fact, nearly 86 metric ton of gold is being mined, which is three times the output from ten years ago.
The History of Gold and Mexico
Mexico’s mining industry dates back to more than a thousand years ago. Civilizations like the Aztecs and the Mayans used this metal generously in their architecture and integrated its use in their culture as well. This is visible from the artifacts found in the area.
Gold in the country again gained fame during the 16th century when a gold and silver vein in Veta Madre at Guanajuato was discovered and unearthed almost instantly. This explains why that was the thriving era of the Mexican economy. However, automating the mining process took time, which is why Mexico was not able to make the most of its resources until the early 2000s.
Why Mining Mexico?
First off, Mexico seems to have more potential as a source of gold. Analysts believe that the bedrock beneath Mexico is loaded with huge and valuable deposits of minerals and precious metals. In addition, the mining laws in Mexico are quite flexible, allowing foreign firms to enjoy far greater profits from the investments being made. However, to start their mining operations, firms need to apply for licenses and a mineral-rights concession under federal law.
How Much Gold is Actually There?
It has been reported that over 19 million ounces of gold have been discovered in Guerrero alone. Considering that Mexico has a long history in terms of mining, a historical trend has produced nearly 40 million ounces of gold over the past 500 years. Due to new reserves discovered regularly, a marginal increase in output that goes all the way to 500,000 ounces is expected.
Gold Mining Regions
There are many sources of the gold available in Mexico. There have even been claims that very large deposits of more gold will be found in the next 5 to 10 years, especially in the following areas:
- Baja California Sur
- San Luis Potosi
Despite these numbers, there is no reliable way to estimate the value of gold reserves present in Mexico. Geographical surveys are being conducted on a regular basis since President Pena Nieto rose to power to provide some idea on the mineral deposits that Mexico owns.
As of now, the mining industry for gold is expected to grow, especially with mining endeavors increasing by the month. This is good news for companies that deal with gold and want to profit in the process.