The underground Mercedes gold-silver mine is located in the state of Sonora in northern Mexico, approximately 250 kilometres northeast of Hermosillo, Mexico and 300 kilometres south of Tucson, Arizona. The Mercedes district has been the focus of mining activities since at least the late 1880s.
The Mercedes property consists of approximately 693 sq km of mineral concessions under lease from the government of Mexico. Commercial production commenced at the Mercedes mine in 2011, and the mine has produced over 800,000 ounces of gold. The Mercedes mill has capacity for approximately 2,000 tonnes per day.
Proven and Probable Reserves as of December 2020 totaled 2.6 Mt grading 3.9 g/t gold and 29.2 g/t silver, containing 325,000 ounces of gold and 2.45 million ounces of silver (2.1 g/t gold cut-off, except Diluvio at 2.0 g/t gold cut-off).
More recently, exploration activities on the property have focused on multiple ore bodies and mineral targets that have the potential to extend the mine life beyond 2026. In 2021, Bear Creek Mining purchased a 100% interest in the Mercedes mine from Equinox Gold. Since 2017, average exploration expenses have been approximately US$1 million per annum, with Bear Creek budgeting $4 million for 2022.