High-Grade Silver Veins in Mexico, But Are the Widths Mineable? | Mercado Minerals CEO Interview

**Antonio** (0:00)
This video is sponsored by Terrahutton, who makes the invisible, investible. Today on the CEO BBQ, early stage silver and gold exploration in Sinaloa, Mexico together with Mercado Minerals.
But if you're short on time, subscribe to our free newsletter, and once a week, we'll send you a five-minute summary of all interviews we put out, resourcetalks.com for a free weekly newsletter. Now, although this company has not paid us for the production of this video, you should still understand that we are not financial advisors, and this is not intended as financial advice. It is a broad, general, and in-personal piece of information intended only for those who know and understand the risks of junior mining, of which there are many. Before moving on, read the company's official filings on Sitterplus.ca and do your own due diligence. Pause the screen and read all the disclaimers I've shown you because your capital is at risk. If this isn't clear, go to the last section of this video for a longer explanation of risks and biases and do not consume this content if you don't agree with everything said therein. Moving on, Ricardo is an early stage silver and gold explorer whose main asset is the Copalito project in Sinaloa, Mexico. Again, it's about 120 kilometers north east of Culeacan and 35 kilometers east of Mcewin mining's El Gallo complex.
Copalito is a low sulfidation epithermal vein system carrying, again, as I mentioned, silver and gold, but it's also have lead and zinc across a network that Mercado now maps at roughly 11 kilometers of cumulative vein strike. The project already has seen some historic drilling. There was 81 diamond holes done on it before Mercado arrived. And then the company itself has completed its own 25 hole drill program just now in August last month across seven structures. And that work extended the known mineralized zones and produced some new high-grade intersections. There's also some surface mapping and soil sampling, LIDAR and drone magnetics and stuff like that, that identified additional vein extensions. And also the previously undrilled Renato vein, all of which we'll touch upon and I'll try to figure out which of those veins they prioritize or will prioritize for phase two and stuff like that. Mercado is still trying to establish the geometry though in the continuity and the scale of the mineralized shoots here again, it is early stage exploration. So hopefully, I can ask some more questions about that later on as well.
This is not the only asset that they have though. There is a secondary asset here is called Zamora. It's roughly 110 kilometers north of Mazatlan where Mercado is actively mapping and sampling as well as building up the field infrastructure and working through community access and drill permitting and all the fun stuff so that eventually, hopefully, they can go and drill it. And of course, I'll ask for a quick update on that later today as well.
That's not it though. There's another thing. They recently signed LOIs in June this year over the San Rafael and La California projects in the San Dimas district. That's Durango, again, in Mexico, a different state. But as far as I can tell, there has been no, no announced definitive closing, but maybe an update on that later on as well.
Now for some of the numbers and a bit of the details here, Mercado is listed as Merc. So that's M-E-R-C on the CSE Exchange in Canada, where the average daily volume of the last three months has been about 150,000 units. 52 week high is 49 cents and a 52 week low is 7 cents. With 76 million shares outstanding and an $11 million market cap today, this is a 14 and a half cent stock. There are 7 million options and 21 and a half million warrants, which collectively represent about 27% of the 104 million shares on a fully diluted basis. The last time they raised capital was actually done in two pieces. So technically, the very last one they closed was just a million dollars, done at 20 cents, but right before that, they closed a $5.6 million financing on December 1 last year. Both finances again done at the same price. There's just a full warrant in there for three years at 35 cents. How much money have they got left after all that drilling? Is that going to be enough for phase two drilling or are they going to have to come back to the market? And what else are they spending money on? Those are all questions that I'll be asking later on in the conversation. But for this to actually become a conversation though, I will have to shut up already. And Daniel, I'll give you the word here. But first of all, thank you for sitting down today.