It's been many years since director John Huston sent Humphrey Bogart and Walter Huston into the Mexican desert in search of gold. The movie "The Treasure of Sierra Madre" was made in 1948, and (other than at the box office) riches were far from certain despite finding the mother lode.
Today's seeker of Mexican riches is likely to be a Canadian junior reworking old gold and silver producers or exploring new base metal possibilities. The Northern Miner website lists approximately 500 Mexican projects in the hands of Canadian companies and about 40 producing mines. Mining companies from the United States no longer dominate the scene. There are only three mining companies listed on the Mexican bolsa (stock exchange), and one of them is preparing to spin off a division on the London Stock Exchange.
I think Canadians may be onto something good. They are able to raise funds on the Toronto Stock Exchange, and they have access to the technology to exploit the deposits they find in a responsible manner. And competition from other North American companies is waning.
Like any foreign exploration or mining operation, Mexican projects have their challenges. Bureaucracy rules, but the people are generally said to be helpful and the mining laws are structured well.
The country is certainly worth a closer look. It is a land rich with silver, copper, gold, lead and zinc. Savvy Canadians may be making their fortunes there.
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