Gold is making new all-time highs in every global currency and there is an accelerating interest in investing in junior precious metals explorers with the potential to make the next big discovery. While the current climate in the precious metals exploration sector is busy to say the least, it is still easy for me to spot quality when I see it. 

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Remember, we want companies with strong management teams with track records of success, tight share structures with strong insider ownership, and projects that offer strong potential for a new discovery. Recently, I came across a Mexican precious metals explorer that fit my criteria and the best part is this company’s projects are surrounded by very large operating gold mines owned by some of the largest gold producers in the world. 

Mexico is one of the most prolific producers of precious metals in the world and the Eastern Sonora Mining District is one of the safest and most mining-friendly regions of Mexico. Tarachi Gold (CSE: TRG) is poised to move quickly at its Tarachi Gold Project in the Eastern Sonora Mining District of Mexico. 

The best place to find a new mine is near an existing mine. Even better if your neighbors are two very large gold producers whose mines border your property package. 

Tarachi is led by a team that not only has extensive mining experience, but international experience. Having worked throughout the Americas, Africa, Asia and Australia, President and CEO Lorne Warner has over 30 years of experience in mineral exploration and underground and open-pit mining as a registered professional geologist (with Noranda Exploration and Placer Dome Inc.). Serving as vice-president of several junior mining companies, impressive discoveries by his team include the western extension of the Detour Lake gold deposit, now in production in Ontario, as well as the Falea North zone (uranium, silver and copper deposit) and the Fatou Main gold deposit in Mali.

I also want to introduce Tarachi’s advisor, CEO of Vizsla Resources Michael Konnert. Mr. Konnert is also co-founder and Partner of Inventa Capital Corp., and was previously co-founder and CEO of Cobalt One Energy Corp. (which was acquired by Blackstone Minerals Ltd. (ASX-BSX) in 2017). Not to mention, Mr. Konnert started his career with Pretium Resources Inc. (TSX: PVG) shortly after their $265M IPO. 

The Vancouver-based company, Tarachi Gold Corp., has the right to acquire 100% of the high potential mineral concessions in Sierra Madre occidental gold belt in Northwestern Mexico. The project lies in the shadows of two producing mines, La India (Agnico Eagle) and Mulattos (Alamos Gold Corp).

The locations of Tarachi’s exploration should yield great benefits due to the following:

  • Claims area dominated by outcrops of Miocene to Eocene andesitic to felsic volcanic tuffs from different explosive volcanic events 
  •  The events were controlled by large-scale north-northwest-striking faults and intruded by granodiorite and diorite stocks.  
  • Regionally, mineralization occurs in areas of intrusion-related high-sulphidation epithermal-hydrothermal gold, silver and porphyry-related gold deposits. Such deposits may be present as veins and/or disseminated deposits and/or breccias.  
  • Tarachi properties host similar style mineralization in north trending structures. Higher gold grades at intersecting structures.  
  • Mineralization consists of high-grade bonanza mineralization in veins and shear zones, disseminated mineralization in breccias, and widespread argillic alteration. 

Tarachi’s Sonoran project consists of Tarachi North (Javier, Pretoria and Chivitas Concessions) and Tarachi South (Jabali concession). Chivias’ strengths lie in the fact there are contiguous drill intercepts and multiple mineralized structures. Pretoria’s promise is in the unexplored, undrilled underground workings and widespread alteration. San Javier shows potential with open mineralization, in addition, mineralization is hosted in sheared, brecciated and altered volcanics. Pictured below are the three concessions making up Tarachi north: 

Potential at Tarachi’s South Jabali project lies in the fact it has extensive underground workings in an intensely silicified and brecciated rhyolite, in addition to a 2019 underground sampling showing that the crossing N-S and E-W Structures have not been properly drill tested and remain open on strike and depth. See location below:

The proposed 2020 exploration program primarily entails two phases of drilling. Phase one, June through August, consists of data compilation, geological fieldwork, drill permit applications, and the start of a 2,000 meter Diamond Drilling Program. Phase two, September through October, consists of reverse circulation/diamond drilling 5000 meters. Sampling results are anticipated to be finalized and compiled for Tarachi’s southern area over the next 1-2 weeks. Crews are still working on the northern claims and drilling is expected to begin in late-August. 

Top notch management team with considerable Mexico experience, tight share structure (~37 million shares outstanding), strong insider/management ownership, and projects that could deliver home runs to shareholders. Tarachi Gold’s stock chart shows evidence of heavy accumulation in recent weeks and I have little doubt the share price will quickly move above the C$1.00 level:

Disclosure: Author owns Tarachi Gold shares at the time of publishing and may choose to buy or sell at any time without notice. The author of this article has been compensated for marketing services by Tarachi Gold Corp.


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