The following is an excerpt from a Q1-2019 article entitled "The Darch Factor - Building Towards a Pediment-like buy-out":


The Pediment–Colorada connection
But that is not Sonoro’s only connection to La Colorada. In 2005 Sonoro’s current VP of Exploration, Geologist Mel Herdrick, held the same position at a company called Pediment Gold. On his advice Pediment acquired La Colorada which at the time consisted principally of a former high grade gold mine. It was a well-known though defunct mine that had produced, since it was staked by Jesuit missionaries in 1740, right up until the start of the Mexican Revolution in 1914. Mel's plan was to develop a low-grade gold resource which he knew surrounded the mine. Mel ultimately outlined a 1.2 million ounce gold resource there. It was the La Colorada resource which prompted Argonaut Gold to acquire Pediment in a C$137 million plan of arrangement. Argonaut now owns and produces gold at the La Colorada, while Mel now hopes to develop million-ounce gold deposits at Sonoro’s Cerro Caliche and San Marcial.

Capital calculations
Pediment is a relevant model for Sonoro. Knowing this dollars for dollars comparison is a worthwhile exercise if we are to calculate just how much shareholder value Sonoro can grow. Using its recent $0.18 share price, Sonoro has a fully diluted market value of CAD $6 million. With its million ounce deposit in hand, Pediment’s value grew to $137 million – 22 times larger – so Sonoro’s potential is considerable. But how likely is a mid-tier willing to bid for the company?

There is a growing need by the area’s mid-tier miners for deposits of the size that we expect Sonoro to develop. Argonaut is one example. Cash-rich Agnico Eagle is another. Baring another discovery, Agnico Eagle will run out of ore at two of its Sonora State Mines within the next 5 years: La India by 2023 and Pinos Altus in 2024. Thus it is a risk, and a happy one, that Sonoro’s long-term plans might be cut short by a takeover bid by one of the area’s mid-tier gold miners as they move to replace their depleting gold reserves. here for full PDF copy from source


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