LATAM Weekly News

28th April 2021

 

Good afternoon everyone!  Jane Lockwood here with another look at the Latin American mining world from Spotlight Mining.  Let’s go…

Market Overview

Last week I wrote about the moves in the copper market and its effects on Latin America (read that overview here), and the commodity has had another stellar week, currently approaching its 2011 record price.  One junior looking to capitalise will be Chakana Copper (TSXV:PERU, OTCQB:CHKKF, FRA:1ZX).  They have some good results from their Soledad project in Peru, showing 125.0m of 0.63 g/t Au, 0.54% Cu, and 55.7 g/t Ag from the Huancarama area, with a 15m interval of even higher grades.  The company reports that the district and local communities are supportive of mining activities in the region, and hopes to develop the project.  New investment in existing copper jurisdictions, as well as developing new areas (looking at you, Ecuador), will likely be more appealing if the copper price stays high.  You can also see below for legislative copper news from Chile, the world’s largest producer.

Another metal causing a buzz is silver, which is again good news for Latin American countries like Mexico.  Look for my article on the Sierra Madre gold-silver zone in the next issue of Coring Magazine, I’ll send out a link when it’s out!  There are plenty of silver producing mines in Latin America, and the online forum reddit, as well other investors, are currently encouraging a squeeze on the silver market similar to the one that caused chaos with Gamestop (NYSE:GME) stocks earlier in the year.  Short supply was one factor that caused the renegade investors to target the silver market, and although the market is probably big and liquid enough to absorb it, the lack of silver supply has now permeated the general market consciousness and that means investment in silver projects might be more appealing in the near to medium term.

Around the Traps

A wealth of information this month from Riverside Resources (TSXV:RRI, Featured Image above) about their Cecilia project in Mexico, with the company following up its April 15 release with another yesterday, reporting high-grade gold intersections at 3.37 g/t over 3.3 metres. The company seems to have hit the top of an old hydrothermal system, which is good news for its future exploration efforts.

You’ll likely read my thoughts about the iron ore price in Friday’s Spotlight newsletter, because it has hit a record high.  This will be significant for Latin American producers like Brazil, especially since Brazil produces high-grade ore that allows Chinese processors to meet emission demands more easily.  Mining.com reports that there are calls for government intervention in China to smooth out supply.

Chile’s future as a copper giant is not exactly in question, but a congressional committee might have put the brakes on investment to some extent by proposing a new tax structure that would charge companies more at times of higher copper prices. Read Bloomberg on the topic here.

Still in Chile, the spat between the government and Albemarle Corp (FRA:AMC) over data about the company’s license to mine in the “Lithium Triangle” has been resolved when new data was supplied to the regulatory body.  However, Albemarle still has two ongoing disputes with the government, one over royalty payments and another over an environmental report on the Atacama salt flat.

That’s all for this week, ladies and gentlemen.  If you like the LatAm news but don’t subscribe to Spotlight’s general newsletter, you can do that at the bottom of our page on our website, or reach out on the social media linked below!

Spotlight Mining are sponsored by Goldplay MiningRiverside ResourcesMountain Boy MineralsSolgoldVangold MiningOrigin Exploration and Mammoth Resources. This sponsorship means we may show preferential bias in the order in which we publish news and updates.