Mexico an alternative to permit-plagued US

Vivian Danielson, in her comprehensive article about U.S. mine-permitting problems (T.N.M., June 12/00), did an excellent job of documenting why grassroots exploration in the western U.S. is no longer attractive.

Companies with operating mines will still be able to permit expansions to their existing operations, should their exploration programs result in the discovery of deposits within sight of those mines. However, new greenfields mine developments are now no more than a fond memory in the U.S. (except, perhaps, Nevada and Alaska).

The two overriding concerns in determining the attractiveness of a region for mining exploration are geological potential and security of title. Like many regions throughout the world, the western U.S. has much of the former, but alas, as Danielson clearly points out, no longer any of the latter. Even if the Clinton-Gore government is defeated in November, the problem will not go away. Exploration managers who do not have an operating mine to explore around need to be responsible with their investors’ funds and explore elsewhere.

So come on down to Mexico (or Peru, Chile, etc.), where there is excellent geological potential and where security of title is as good as you will find it anywhere in the world. Mining investment is sought both at the national and local levels, and although Mexico is slow in cleaning out expired concessions, the government is working to resolve this problem.

If you find a deposit in Mexico and it is minable, you will be able to put it into production; if you find one in the U.S., you won’t even be able to do an ore reserve calculation because one of the requirements would be that you have the legal right to mine it, which is no longer the case.

David Griffith

Recursos Cruz del Sur

Cuernavaca, Mexico