Gold Mines in Mexico – Is It Worthy Investment Option?

Gold Mines in Mexico

Gold mines in Mexico are still great investment options even though several mines are under producing and more are closing. For example, the Peñoles’ La Ciénega project in Durango has had low production, but now production is increasing yearly and currently enjoys a high grade of gold reserves. Gold mining companies from Canada originally purchased and invested in this mine and are upgrading and predicting that the mine will go back on line fulltime within five years and begin producing high grade ore once more.

Gold mining in the State of Guanajuato and its Torres mine has a declining reserve portfolio and was down by 41 percent in 2003 and 2004. However in early 2004 El Cubo Mine in Guanajuato became one of the many gold mines for sale in Mexico and a bid for US$13.5 million in cash and assumption of debt are low asking prices and a high investment option that has several bidders.

Although gold mines in Mexico have declining revenues and there are labor problems gold mining investments in Mexico are still high value. In 2003 Glamis Gold Ltd. began construction on El Sauzal in Chihuahua State. There is a high gold reserve in this mine and it is now prodding 170,000 ounces of gold on an annual basis with higher production estimates.

Gold reports indicate that Queenstake Resources Ltd began production at the Magistral project in Sinaloa in 2003 and the mine was sold to Nevada Pacific Gold Ltd that same year. Nevada Pacific owns gold mines in the USA, and areound the world and is expected to add the Magistral project to its folder of gold investments. Magistral will contribute over 23,000 ounces of gold to Nevada Pacific’s gold shares annually.

Other worldwide gold investment firms include Bolnisi Gold NL that drills in gold mines in Mexico near Chihuahua. Geologists working for Bolnisi gold report that there are high gold reserves in the rocks of this mine and the gold produced will be of good quality. Gold investors internationally definitely feel that gold mines in Mexico have the potential of adding to worldwide stores of gold.

Advertisements of gold mines in Mexico for sale include mining in old river beds that may yield up to 45,000 ounces of gold in the next five years. With gold at high selling rates and if the financing is liberal, this will make gold mines in Mexico highly profitable investments.