Mining in Guatemala

Guatemala has an enormous potential in gold, nickel, tin and other light materials. In 2007 one mine alone processed 1.7 million tons of mineral with an average gold content of 4.55 grams per ton and 84.31 grams of silver per ton.

Guatemala possesses an enormous potential of gold, silver, nickel and tin and has become a “go to” mining destination.

El Pato is situated in the emerging precious metals region of eastern Guatemala. Several major and junior resource companies are active there, including Tahoe Resource’s Escobal property with its silver-equivalent indicated resource of 310 million ounces and Goldcorp’s Cerro Blanco property with its indicated resource of 1.3 million ounces gold.

Working in Guatemala

The importance of this region is the economic mineralization of gold and silver in veins of quartz and silicified zones found in fractures. This is located in the mining district of Chiquimula, which also has deposits of Cu in Xororagua Hacienda El Santo, Pb-Zn-Ag in Terceron and zones with iron oxide in San Jose La Arada, close to the city of Chiquimula. Other important fields are a series of bodies of iron oxides in the mining district of Jocotan-Camotan, North East of Chiquimula, which have been exploited to supply the cement industry in Guatemala and in El Salvador.

While an abundance of natural wealth makes Guatemala an exciting investment destination, the nation’s under-development presents mining companies with a particular set of challenges.

Goldex is proactively addressing these challenges in various ways:

In 2007, Goldex organized a community relations team to visit the villages of El Pato and El Sauce on a regular basis, at first bi-weekly and then, once a solid rapport had been established, on an ad hoc basis.   These visits communicate Goldex’s intentions to local residents and, in turn, educate the Goldex’s management about local concerns. Goldex participated in the construction of a maternity clinic to serve the Chiquimula area in 2008. Together with other local miners, Goldex provided water supplies to local residents during the 2009 drought. And Goldex is currently re-grading a road to service local vehicular traffic during rainy seasons.

Goldex is committed to communicating with local residents and is confident that doing so it will also secure its own interests.