By 2017, Mexico's gold output is expected to top 100 t/y on account of a few explorers' major new discoveries.

Thomson Reuters GFMS mining analyst Matthew Piggot recently told Mining Weekly Online the next five years would be full of new projects “ramping up to full production” in what will surely be a few of the biggest years yet for the gold market...

Mexico is so attractive to gold miners because it is one of the lowest-cost mining jurisdictions in the world: to extract one ounce of gold (on average) in Mexico costs approximately $325 per ounce compared to the international average of a hefty $649/ounce.

Low labor costs combined with an array of skilled workers eager to stay on the job help keep production costs so low.

Newstrike CEO Richard Whittal has also publicly announced his optimism in regard to Mexico's golden future, saying the Ana Paula project Newstrike bought from Goldcorp two years ago (in the Guerrero gold belt) is set to yield more than three million ounces of the yellow metal.

The Guerrero gold belt is a relatively new gold district gaining attention from gold companies.

The district houses Goldcorp's Low Filos complex, the largest gold mine in Mexico to date, as well as Torex Gold Resources' Morelos project.

Los Filos alone has been proven to hold 7.7 million ounces of precious metal resources.

Whittal said the resource comprises quite an “unusual” discovery for Mexico, due to the high-grade core boring deep into the earth, covered by a large lower-grade orebody.

Grades in the orebody core have already proven to be significant and the lower grade on the outer level “held significant tonnage.”

The Ana Paula project, funded by Newstrike, intends to spend at least $15 million on related exploration endeavors in the area after investing $10 million last year.

Yamana Gold also began production at its Mercedes mine in Mexico in 2011...

As of February 1, 2012, the Mercedes mine in Sonora, Mexico, is Yamana's newest center of commercial production.

Amidst economic depression in the United States, Mexico is booming — bursting at the seams with enough gold to secure a place on the world's top ten list of the most producing gold countries.

It's no wonder Mexicans are remaining in their home country instead of fleeing to the States in search of better opportunity...

Earlier this week, we told Wealth Daily readers:

On Monday, the Mexican Chamber of Mining said the country hit a new record in gold production in 2011, reaching 88.6 tons of the precious metal — nearly 22% more than 2010.

This means Mexico has the highest growth rate in the world in terms of bullion production.

Mexico's gold-growth story has great potential for gold bulls looking for new ways to invest.

With discoveries like this pumping millions — possibly trillions — of dollars into the global economy, you'll want to be in the right companies before production really takes off...

Best wishes for a prosperous future,

Brittany Stepniak

cheers

W.C. Guy