Gold Resource attracts $5.18M

Gold Resources Corp. of Denver...
said it still hoped to make a production decision in early 2007 about its El Aguila high-grade gold and silver project in Oaxaca, Mexico.

see Intrepid and Aura Silver to Partner on Mexican Silver-Gold Property in Oaxaca News

...and they thought that Wal-Mart would destroy the Oaxacan landscape.....
WHERE exactly in Oaxaca is the Aguila project? I can't wait to see what cause the teachers and APPO/PRD will proclaim to be their reason behind trying to get a piece of THAT action....capitalists........i ndeed.........weren't the teachers originally striking fo' mo' money?...yeah, that's right....I believe that they were. How does that fit into commie ideals?...and what about the thousands of poor farmers and shepherds that don't have a salary equal to the teachers?...I say: UNFAIR!!!......FARMERS UNITE AND STRIKE FOR FREEDOM!!!!!...

The other article says San Jose. The site is 53 square miles. Also referred to as Taviche property. There is no mention of the type of mining (underground or open pit). The last paragraph will give you a sense of the money involved. How much of this will circulate through Oaxaca, I don't know.
"The underlying agreement calls for Intrepid to commit to spending a total of US$4.0 million over five years and making option payments totalling US$790,000 over the same period to earn a 70% interest in the Concessions. Plata holds the right to back-in at the end of the fifth anniversary if a NI 43-101 compliant report has identified a measured and indicated resource estimate of at least 50 million ounces of contained silver. Should Plata exercise their right, they can recover 40% of the property interest, for an aggregate 70% by funding 100% of subsequent expenditures over a four year period. These expenditures will equal three times Intrepid's aggregate investment to that date."

53 square miles is pretty freakin BIG. You know there is still plenty of Gold in the US, although it costs too much to go after it. This is gonna have to be some rich vein to do it through traditional tunneling.

The constraints on mining in the US are more environmental than free market, altough there is a
huge open pit gold and silver mining operation in the Clear Lake region of California which occupies three counties! Their environmental impact reports occupy all the shelves on an entire wall of their office.

I suspect the operation in Oaxaca will be a big open pit mining operation as well. This will provide high wages for a few people and could leave a big mess. I can't find out where it is so I don't know if it is worth wasting.

There is currently a lawsuit by a Canadian company against the state of California over the refusal to allow a big open pit mining proposal in the mountains to the east of the Salton Sea in soutnern
California under the provisions of NAFTA.

A Canadian company is also behind the proposal for Oaxaca. A lawsuit also exists by a Canadian company under NAFTA against California for outlawing MTBE, a toxic gasoline additive manufactured in Canada.

I have worked in a big open pit near the Salton Sea proposal and I am skeptical about the environmental impact, but the property is on Indian land and I don't know their opinion. It might involve digging up a graveyard. I have noticed that the Oaxaca project is high grade ore, which means that it probably won't be open pit.

localokie wrote:

A Canadian company is also behind the proposal for Oaxaca. A lawsuit also exists by a Canadian company under NAFTA against California for outlawing MTBE, a toxic gasoline additive manufactured in Canada.

That's some fascinating stuff....so now the wacko treehugger state is being sued for disallowing free enterprise through Nafta. I don't know if that's tragic or funny. I'm having a hard time with that, I guess it's both. It's tragic, because the wacks in CA have alienated themselves from common sense to the point that they are stifling their own economy, and somebody finally has found a way to go over their heads, even though their product has a negative impact, yet funny, because they can't control everything, including even a foreign company, doing business from a socialist country...a liberals' wetdream. How ironic, as well.

localokie wrote:

.... but the property is on Indian land and I don't know their opinion. It might involve digging up a graveyard. I have noticed that the Oaxaca project is high grade ore, which means that it probably won't be open pit.

Wocka-wocka. That's a kind of double whammy there. The NA indians, obviously believe/d in the sanctity of their graveyards and ancestry....so does the rest of the world, but add to that the whole DOD issue, and the idea that their ancestry comes back to visit, spiritually, every year. The more traditional among them still believe that, putting out specific floral decor and burning specific incense to 'guide' their relatives 'back home' from the realm of the dead. Bear with me for a moment....logically thinking, if the dead have a difficult time finding their way back now, how would the Indianas feel about relocating those graves?...it may be a moot point, however, since they also put up alters in their homes to draw the spirits of their ancestors home.
I am thinking that that is somewhat of a dichotomy of thought, however, if the living are basically taking the responsibility upon themselves by randomly choosing locations for their relatives to return to. Again, logically thinking, that would seem to be confusing for the spirits of the dead. If I were one of the dead ( and God knows, there are some here who would like that ), I wouldn't know where to go....and don't even bring up the issue of relatives moving to a new house, or upping and leaving the country altogether for the US..........

I dont think the graveyard concern is an issue in Oaxaca. This is an old cherrypicked property, and I am sure that the indigenes have made their peace with it; they are probably all hoping for jobs. The graveyard concern is very real in California however, often leading to high passion and lawsuits. I guess that is part of what makes us whacky. In local usage that is considered a compliment. Remember that California is not one of those nations where one able body in ten is fleeing the country.