Mining Co. Uncovers Massive 50Moz Silver Potential in Sonora, Mexico

1. Steve Sobek wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
2. This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company. 

For additional disclosures, please click here.

1. Ownership and Share Structure Information

The information listed above was updated on the date this article was published and was compiled from information from the company and various other data providers.

Minaurum Gold Inc. (MGG:TSX.V) announced it has successfully wrapped up its Phase I 10,000-meter infill maiden resource drill program and is now launching a Phase II resource expansion drill program of approximately 25,000 meters at the Alamos silver project in Sonora, Mexico, according to a release on November 27.

"With Phase I of our resource definition drilling now complete, we're excited to move toward a key milestone — the delivery of our inaugural resource estimate," stated Darrell Rader, president and chief executive officer. "Once we receive assays from the Phase I program, we will complete the resource estimate. We're confident that the initial estimate will represent only a fraction of the project's full potential, as numerous high-priority discoveries remain outside the resource. The 25,000-meter Phase II drill program is specifically designed to test and expand both existing targets and additional zones toward a major resource update in 2026."

Minaurum has identified 26 vein zones within an 11-kilometer-by-6-kilometer area, covering just one-fifth of the Alamos project, the release noted. Thirteen of the 19 vein zones drilled returned high-grade silver intercepts, demonstrating the abundant mineralization present throughout the vein zones. Only three of these discoveries will be included in the initial resource estimate.

Phase I drilling focused on three high-grade vein zones — Promontorio, Europa, and Travesia — which will form the basis of the inaugural resource. Initial results have been released and continue to demonstrate continuity of high-grade silver mineralization, the company said. Once received, the remaining assays will be incorporated into the resource model in advance of the announcement of the resource estimate.

Phase II drilling will build on the results of Phase I with a planned 25,000 meters of drilling, Minaurum said. The program will include step-out holes at the Europa and Travesia silver shoots, as well as additional drilling at the historic Quintera and Minas Nuevas mines, and the more recent discoveries at Promontorio Sur, Cotera, Pulpito, and San Jose vein zones.

Minaurum said it is well-positioned to advance this next phase, with 263 drill pads already permitted across the project.

Focusing on Strike Length, Open to Depth Drilling

The cumulative strike length of the Europa vein zone totals 2.8 kilometers and is open more than 1 kilometer along strike to the south and 0.5 kilometers in the northern extension of the vein zone, the company said. The average vein thickness is 3 meters with a grade of 454 grams per tonne silver equivalent (g/t Ag Eq), including 358 g/t silver (Ag), 0.5% copper (Cu), 0.6% lead (Pb), and 1.2% zinc (Zn). Drill targeting will focus on the total strike length and open to depth drilling through multiple hanging wall veins and splays.

The cumulative strike length of the Travesia, Promontorio Sur, and Quintera vein zones totals 3.2 kilometers and is open more than 1 kilometer along strike, including more than five subparallel veins. The average vein thickness is 5.40 meters with a grade of 338 g/t Ag Eq (170 g/t Ag, 0.4% Cu, 1.0% Pb, 2.0% Zn), the company said.

Drilling at Travesia, located on the hanging wall of the Quintera vein system, will target a high prospectivity zone on a stacked vein system as well as the parallel striking historic Quintera mine. Promontorio Sur is the structurally offset section of the trend with a strike length of 1 kilometer.

The cumulative strike length of the Minas Nuevas, San Jose, Pulpito, and Cotera vein zones totals 5 kilometers, all open along strike and at depth. Drill targeting will focus on the 1.2-kilometer strike length at Minas Nuevas at the Zambona and Purisima veins, targeting secondary veins that have reported grades through historical drilling. Testing at San Jose will focus on a 1.5-kilometer-long section where previous drilling intercepted a wide vein system with secondary veins and splays. Drilling will also test the stacked veins at the Pulpito/Cotera vein zone.

Marketing Agreements

Minaurum also announced that it has entered into agreements with Capital Analytica and the National Inflation Association (NIA) to extend its marketing and communications services.

The company has signed a marketing services agreement with Capital Analytica, effective November 10, 2025, for a 12-month term, with the possibility of renewal. Under this agreement, the company will pay Capital CA$120,000 in four equal quarterly installments of CA$30,000. The services provided will include social media consultation, social sentiment reporting, social engagement reporting, corporate video dissemination, news release dissemination, and marketing communications services.

Additionally, the company has entered into a marketing services agreement with NIA, also effective November 10, 2025, for a 12-month term, subject to renewal. The company will pay NIA US$100,000 in quarterly installments of US$30,000, US$30,000, US$20,000, and US$20,000. NIA's services will include promoting the company's activities through its email distribution lists, website, and blog posts.

Analyst: Co. Has 'Competitive Advantage' With Permit

Red Cloud Analyst Taylor Combaluzier called the latest drill results "positive" for the company in an updated research note on October 30.

The drilling is focused on three high-grade CRD vein systems: Promontorio, Europa-Guadalupe, and Travesia, Combaluzier noted. The results continue to confirm the continuity of high-grade mineralization both down dip and along strike, with promising grade intervals of up to 396 g/t Ag Eq over 4.53 meters (AL25-142).

"We believe continued drilling success, a maiden resource, and PEA (preliminary economic assessment) at Alamos should help drive the stock price higher," Red Cloud Analyst Taylor Combaluzier noted.

"Management has an initial target of 50 Moz (million ounces) Ag Eq for the maiden MRE (mineral resource estimate) expected in Q4/25," the analyst wrote. "We note that this drilling is past the cut-off date for that maiden MRE, so we would expect these positive results to help support a planned MRE update in 2026. The company is targeting ~100M oz Ag Eq at Alamos ahead of a PEA. There are numerous identified vein zones that could be incorporated into a future MRE following systematic infill and expansion drilling."

Combaluzier continued, "In our view, Minaurum has a competitive advantage compared to other silver explorers in Mexico because it already has a production permit in hand. This could allow the project to be fast-tracked toward production following the delineation of resources and a PEA, particularly given the current robust precious metals price environment."

Currently, Red Cloud does not give a traditional rating or target for the stock.

"We believe continued drilling success, a maiden resource, and PEA (preliminary economic assessment) at Alamos should help drive the stock price higher," he noted.

MRE Could Be Catalyst for 'Substantial Re-Rating'

Ted Butler, senior analyst for TheGoldAdvisor.com, noted on December 2 that he had recently visited the Alamos project.

Nestled in the rugged landscape of Southern Sonora, Mexico, Alamos stands out because it is already fully permitted for production — a significant advantage in a country where securing permits has become increasingly challenging.

"Armed with this competitive advantage over its Mexican peers, Minaurum is advancing Alamos towards a Maiden Resource Estimate — a catalyst that could result in a substantial re-rating if it lands as we expect," Butler said.

With this competitive edge over its Mexican counterparts, Minaurum is progressing towards a Maiden Resource Estimate at Alamos — a development that could lead to a substantial revaluation if it meets expectations. The purpose of my due diligence visit was to assess whether Minaurum has the geological potential and the skilled technical team necessary to deliver a market-impacting maiden resource.

Butler called the Europa vein zone "the true high-grade silver engine of Minaurum's Alamos project — the type that kicks up geologists' adrenaline faster than a shot of tequila at midnight."

"All things considered, Minaurum may not be the biggest silver project you've ever seen," Butler wrote. "But the end of the day, it doesn't need to have gigantic scale when it's already got all its necessary permits in the bag."

As a result, Minaurum is well-positioned to achieve a 100 Moz Ag Eq resource by maintaining its current approach: systematically drilling, expanding known high-grade areas, and consistently increasing the ounces at Alamos, Butler said. Meanwhile, the successful CA$9.2 million raised in July provides the necessary support to sustain the aggressive drilling campaign for now.

Despite the permitting challenges, Mexico improved its Investment Attractiveness Index score by nearly 18 points, moving up to the 49th position out of 82 in the 2024 Fraser Institute Annual Survey of Mining Companies, compared to 74th out of 86 last year. In terms of policy, Mexico's score rose by 4.76 points, advancing to the 61st spot out of 82, up from 68th out of 86 the previous year.

The Catalyst: Gold Inching Higher

Gold prices inched higher on Wednesday, supported by a weaker dollar as investors looked ahead to next week's Federal Reserve meeting, where an interest rate cut is widely anticipated, Peter Nurse wrote for Investing.com on December 3.

At 08:40 ET, spot gold was up 0.4% at US$4,221.17 per ounce, while U.S. Gold Futures rose 0.8% to US$4,252.90 per ounce. Earlier this week, the yellow metal reached a six-week high of US$4,264.29 per ounce.

Markets are currently pricing in about a 90% chance of a rate cut at the Fed's December 9–10 meeting, according to CME's FedWatch tool, Nurse reported. A dovish outlook has pushed the U.S. dollar lower, with the US Dollar Index nearing its weakest levels since mid-November, making gold more appealing for foreign buyers.

Additionally, softening U.S. economic data has fueled speculation about rate cuts. Market participants are also awaiting the release of the delayed September Personal Consumption Expenditures Price Index (PCE) on Friday, the Fed's preferred inflation measure.

Nurse also reported that there was speculation about a potential leadership change at the Federal Reserve. Reports indicate that Kevin Hassett, a White House economic adviser known for advocating lower interest rates, is a leading candidate to succeed current Chair Jerome Powell. This possibility has heightened expectations of a more accommodative monetary policy under new leadership, enhancing gold's appeal as a safe-haven asset.

Gold has attracted new buyers around the US$4,200 level as concerns about the health of the United States economy continue to support the case for an interest rate cut, wrote Dhwani Mehta for FXStreet on December 2.

Data released on Monday indicated that U.S. manufacturing contracted for the ninth consecutive month in November, with the Institute for Supply Management's (ISM) PMI falling to 48.2 from 48.7 in the previous month, Mehta noted. The market had anticipated a reading of 48.6. Additionally, the downside for gold remains limited by increasing market anxiety.

Ownership and Share Structure¹

About 60% of the company is owned by high-net-worth investors, about 15% by precious metal funds, about 5% by management, and about 20% is retail.

Top shareholders include Sprott Asset Management LP with 0.91%, CapSolutions GmbH with 0.91%, Darrell Rader with 0.57%, U.S. Global Investors Inc. with 0.29%, and Stephen Maynard with 0.25%.

Its market cap is CA$175.34 million with 438.34 million shares outstanding. It trades in a 52-week range of CA$0.13 and CA$0.48.