MINING IN MEXICO — Noranda drilling four prospects

The exploration activity of Noranda Exploration in Mexico continues to pick up as its budget for the region increases.

The company, a unit of Noranda (TSE), and known as Norex, has about 20 projects on the go at various stages of exploration. “We’re drilling four projects now,” William Mercer, Norex’s Latin America manager, told The Northern Miner in Toronto.

Norex has been contracted by its parent, Noranda Minerals, and Hemlo Gold (TSE) to perform the exploration work. (Noranda Minerals is wholly owned, and Hemlo Gold is 45.6% owned, by Noranda Inc.)

The total 1993 Latin America budget of Norex is about $7 million, half of which is directed to Mexico and the other half to Chile.

The company has an office at Hermosillo, capital of Sonora state. The office, run by Robert Page, has a staff of about 20, including nine geologists (five Mexican and four Canadian and American).

“Our prime targets are still copper and gold,” Mercer said, explaining that the overall Mexican split is 50-50.

The current drilling, involving 3,000-4,000 metres in total, is being carried out on three gold properties and one base metal property. One drill rig is being moved from project to project.

No longer in the company’s portfolio is a gold-silver prospect in Sonora which was being explored under a now-defunct joint-venture agreement involving Hemlo Gold, Jonpol Explorations and T&H Resources. All Mexican properties in which Norex is involved are being optioned from private individuals. “Usually, it’s from local guys who have a small property,” Mercer said.

The Norex manager said changes in regulations governing mining are making it more expensive to hold ground in Mexico. Taxes have risen, he said, and the government is more demanding in how claims are being staked; for example, an on-site surveyor is now required.

What will likely happen, Mercer continued, is that there will be a greater turnover of ground as claims are dropped, thereby opening up new staking opportunities.