Precious metals producer Starcore International Mines (TSX:SAM) has achieved a significant milestone in commissioning the new processing circuit, including the ADR plant for carbonaceous ore treatment at its San Martin Mine in Queretaro, Mexico.
In reporting its production results for the fourth fiscal quarter ending 30 April 2025, the company says to date the plant has milled 5,000 tonnes of stockpiled ore grading 2.1 grams per tonne of gold and 26g/t of silver in the start-up phase.
Recoveries were 80% for gold and 76% for silver, “as expected based on metallurgical investigations”, with a doré production of 180 gold equivalent ounces.
Starcore notes that the mine has ramped up development and mining activity as planned, producing 140 tonnes per day of carbonaceous ore, and it has engaged a contractor for the necessary additional works.
COO Salvador García says other operations continue as normal, exploring and developing a new area in the southern part of the mine, where the San Martín mine began 30 years ago as an open-pit operation and are now focused on the depths of that area called the San José mine.
“We are very excited about the success of the new carbonaceous ore process, as it represents an extension of the mine life,” García says.
“This paves the way for continuing to explore the great potential we have at San Martín, in oxides and carbonaceous ore.”
Mexico accounts for roughly 4% of global gold production, with the largest producers being China, Russia, Australia, and Canada. A December 2024 report by Suisse Gold reports that gold production in Mexico was 120 tonnes in 2023.
Overall global gold supply increased by 1% year-on-year to reach 4,974 tonnes in 2024, as high prices pushed up gold recycling and primary production, according to the Department of Industry, Science and Resources (DISR) March 2025 Resources and Energy Quarterly.
DISR forecasts Canada, Australia, Papua New Guinea, as well as Central and South America to lift their gold mine production in 2025, with expansions in existing projects and higher output offsetting output falls in Indonesia.
From 2026, gold supply is projected to remain relatively stable at about 5,000 tonnes per year. The rise in mine output to 2026 is expected to come from higher output from existing mines as miners use high-grade gold veins to capitalise on high gold prices as well as new supply, especially in Canada.
According to DISR, high grades are depleted over the outlook period, output from currently operating mines will fall. Expected output from mines under construction and in the feasibility study stage are forecast to offset falling output from existing mines to 2030.
Starcore is engaged in precious metals production with focus and experience in Mexico. While this base of producing assets is complemented by exploration and development projects throughout North America, Starcore has expanded its reach globally with the project in Côte d’Ivoire.
The San Martin project is located 50km east of the City of Querétaro in Querétaro State, and about 250km northwest of Mexico City. The city of Queretaro has a population of over 1 million people and is touted as one of the safest states in Mexico.
In 1982, the area of San Martin was declared a National Reserve, however by 1986 Luismin (previous owner) had reached an agreement to conduct exploration in the area. Mining began in 1993 at 300 tonnes per day and the production increased on a yearly basis to the present rate of 600tpd with the capacity of 900tpd.
The San Martin mine properties are comprised of mining concessions covering 13,077 hectares. In addition to the ongoing mine exploration and development that is currently being performed in the development of the mine, Starcore is continually assessing the potential for further exploration and development of the San Martin properties and continually modifying the exploration budget accordingly.
The mine operates two underground and one surface drill rigs to provide information to assist with mine planning in addition to exploration, with the intent of increasing the reserves and resources on the property, and the company is budgeting targets of some 10,000m of underground development and exploration drilling annually.
Write to Adam Orlando at Mining.com.au
Images: Starcore
