Minaurum Silver expands Alamos drilling as Mexico project points to larger resource

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Minaurum expands Alamos drilling

Highlights

Minaurum Silver expands a 50,000-meter drilling campaign at Alamos Silver Project, targeting significant resource growth beyond the initial 55.2-million-ounce inferred resource.
Recent intercepts include 5.95 meters at 1,117 g/t silver equivalent at Quintera and the discovery of the concealed Africa vein, indicating district-scale resource potential.
With $11 million cash, production permits, and new high-grade zones identified, Minaurum prepares for economic studies but faces inferred resource, capital, and project execution risks.

Alamos drilling adds scale to silver story

As reported by Weiss Ratings, Minaurum Silver is stepping up exploration at its wholly owned Alamos Silver Project in southern Sonora, Mexico, where the company already reports an initial inferred resource of 55.2 million silver-equivalent ounces grading 320 grams per tonne silver equivalent. That resource includes 34.8 million ounces of silver as well as gold, copper, lead and zinc, but it covers portions of only three of the 26 known vein zones on the property, Promontorio, Travesia and Europa.

The company is now in the middle of a 50,000-meter resource-expansion drilling campaign aimed at materially increasing the size of the deposit. Recent drilling results continue to highlight high-grade mineralization, including 5.95 meters grading 1,117 g/t silver equivalent at Quintera, with 2.40 meters grading 2,557 g/t, and 3.65 meters grading 888 g/t silver equivalent at Europa Sur, including 2.65 meters at 1,053 g/t.

Minaurum also reports a 26.3-meter intercept grading 369 g/t silver equivalent at Quintera in August, while a 250-meter step-out hole at Europa returns 12.35 meters grading 408 g/t silver equivalent, including 3.2 meters grading 1,277 g/t. On Oct. 22, the company announces the discovery of the Africa vein, a blind structure with no surface expression, where drilling hits 2.05 meters grading 669 g/t silver equivalent, suggesting additional concealed mineralized zones may remain to be found across the district-scale property.

Permitting position supports longer-term development case

Beyond drilling, Minaurum has rehabilitated more than 600 meters of underground haulage at the old Promontorio mine and gained access to a 55-meter-deep internal shaft. Channel sampling there returns grades of up to 4,142 g/t silver equivalent, and Promontorio currently accounts for about 28.6 million silver-equivalent ounces of the project resource.

The current program is also generating high-grade results from multiple areas, including Quintera, Europa Sur, San Jose and Promontorio Sur, giving the company several potential avenues for adding ounces rather than relying on one vein system. Alamos is already production-permitted, a factor that could help as Minaurum adds personnel with Mexican underground mining and operational experience and moves toward economic studies and reviews of future production centers and mining methods.

Still, the project remains at the exploration stage, and the entire 55.2-million-ounce resource sits in the inferred category, the lowest-confidence classification. Minaurum holds $11 million in cash and also has other gold, silver and copper projects in Mexico, but advancing Alamos through further drilling, engineering, studies and possible construction is likely to require additional capital, while permitting, metallurgy, financing, construction and commodity-price risks remain part of the outlook.

We previously reported on how geopolitical tensions and elevated public spending are straining sovereign credit resilience in a higher interest-rate environment. That piece noted that persistent shocks can lift inflation via energy and food prices, widen refinancing risk as debt rolls over at higher costs, and leave emerging and frontier markets particularly exposed because their debt-service burdens are high relative to government revenues.

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