IKN

Tis rigor and not law

Torex Gold (TXG.to) in Guerrero State: Don’t say IKN didn’t try to warn you

Here’s a little list with just some of the times your humble scribe has tried to warn the world about the political risk for mining companies in Guerrero State, Mexico. Perhaps with today’s news about Torex (TXG.to) a few more might come round to reality.
From IKN200: “Guerrero
State in Mexico is a politically risky place to go mining and it’s the main
reason I’ve never warmed to Newstrike (in
particular, great rocks there
), Torex or any other company working the
region. Added to this, I’ve heard more than one on-ground opinion that backs up
my call on this region including one from a South American born geologist who
was working for one of the explorecos until two years ago but quit and found a
job with a different company in a different LatAm country. No names no
packdrill, but this is a seasoned professional who knows his way around LatAm,
plenty of street smarts and experience who was genuinely scared of working in
Guerrero after a minor brush with a local gang member and a subsequent phone
call from some anonymous who’d by then found out everything about him including
background, place of birth, names addresses and current location of family
members, the whole nine yards.”
From IKN220: “…some places are better than others
in Mexico when it comes to political risk of the narco-violence variety and
that the two places that one should avoid this specific problem are Chihuahua
and Guerrero States. Perhaps that’s a little too blanket a statement, but if
those addresses come up in your junior DD you must at least be able to ask
plenty of questions in order to find out whether your target company is in any
of the hot zones of these hot states. For example (and to repeat on this one)
I’ve looked at and rejected companies such as Sierra Metals (SMT.to) Newstrike
Capital (NES.v) and Torex Gold (TXG.to) for this specific reason.”
From IKN247: “…Torex (TXG.to), which has done decent work
on its community acceptance but is still located in one of the highest pol risk
ares of Mexico, Guerrero, and is simply not for me.”
From IKN256: “On many occasions, these pages have been used
to call “danger” on the political and community risk levels for Guerrero State,
Mexico.”
And they’re just a few examples scraped quickly from back copies of The Weekly. Google “IKN” and “Guerrero” for open blog examples (there are many).

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