Mercado Minerals Signs Multiple LOI's to Acquire District Scale Land Holdings in the Prolific San Dimas Mining District of Durango, Mexico
Rhea-AI Summary
Mercado Minerals (OTCQB: MRMNF) signed two LOIs to acquire the San Rafael and La California silver-gold projects in the San Dimas district, Durango, Mexico. The adjacent properties total 4,617 ha with over 6.5 km of cumulative structural/vein strike.
According to Mercado, both projects can be acquired via five-year options for about $5.6 million CAD in cash, with no royalties or NSR. Reported historical underground and channel samples show high-grade silver-gold intervals, but the company’s Qualified Person classifies these results as historical and not yet independently verified.
Positive
- LOIs for two adjacent projects totaling 4,617 ha in San Dimas district
- District-scale structural corridor exceeding 6.5 km of cumulative strike potential
- Option terms total about $5.6M CAD cash over five years
- Option agreements reportedly have no royalties or NSR attached
- San Rafael hosts 4.5 km identified fault structures with historical underground workings
- La California vein traced along 2 km with widths up to 10 m
Negative
- All San Rafael and La California sample and drill results are classified as historical and not to be relied on
- Project interest depends on five-year option payments totaling about $5.6M CAD
News Market Reaction – MRMNF
In the Jun 2 session, MRMNF declined 6.20%, reflecting a notable negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
Vancouver, British Columbia--(Newsfile Corp. - June 2, 2026) - Mercado Minerals Ltd. (CSE: MERC) (OTCQB: MRMNF) ("Mercado" or the "Company") is pleased to announce it has signed two Letters of Intent ("LOI") to acquire two adjacent silver - gold epithermal projects (the "Projects") (see Figure 1), creating a 4,617 ha district scale opportunity with over 6.5 km of cumulative strike potential in the Sierra Madre Occidental. The Projects are all located in the San Dimas mining district of Durango, Mexico.
Highlights
Two projects totalling 4,617 ha located in the prolific San Dimas mining district, one of Mexico's highest-grade silver - gold epithermal districts, with past production through December 2024 estimated at more than 766 Moz of silver and more than 11.1 Moz of gold¹.
District-scale land packages spanning a NW-trending structural corridor exceeding 6.5 km along the Sierra Madre Occidental Silver - Gold Belt, the same trend hosting First Majestic Silver's Tayoltita mine.
San Rafael Project:1,004 ha property with 4.5 km of identified fault structures hosting intermittent vein mineralization and underground mine workings. Historical underground chip samples returned a highlight result of 1.4 m of 316 g/t silver and 22.08 g/t gold (La Esperanza level).
La California Project: 3,613 ha property with over 2 km of cumulative vein strike length, and an average width of 4 m (up to 10 m). Historic channel sampling returned a highlight result of 2.5 m of 380 g/t silver and 1.28 g/t gold.
Both projects can be acquired under five-year long option agreements to earn
100% interest for cash payments totalling approximately$5.6 million CAD with larger payments weighted in the later years.There are no royalties or Net Smelter Return Royalty payments associated with the LOI's.
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CEO Comments
Daniel Rodriguez, CEO and Director, comments, "This is exactly the type of opportunity Mercado is looking for. Our ability to access new projects because of our team in Mexico helped uncover this potential. We are now working towards building a truly district scale presence with kilometres of cumulative vein strike length and numerous highly compelling targets. Putting together land packages of this size in the San Dimas mining district - where hundreds of millions of ounces of silver have been discovered and mined - across two strategically positioned properties is the right kind of transaction to create value for our shareholders. We are excited to advance both La California and San Rafael, and I look forward to closing out our due diligence period and moving forward on all fronts."
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San Rafael Project
The San Rafael project comprises five concessions totaling 1,004 hectares, situated approximately 154 km west-northwest of the city of Durango. The property is accessible via a combination of paved and unpaved roads and has an existing airstrip and camp infrastructure.
The San Rafael Vein is a structurally controlled, low-sulfidation epithermal gold-silver system hosted in andesitic flows and tuffs of the Lower Volcanic Group - the same host package found at First Majestic Silver's Tayoltita Mine and throughout the San Dimas mining district. The vein strikes nearly north-south for over 2.8 km, dips 70-80 degrees east and has a 450 m elevation difference between highest and lowest exposures. Width varies from a few centimetres to 15 metres in width. The San Rafael fault structure has been identified along 4.5 km of strike within the concession boundaries.
The San Rafael project consists of a historical mine with four underground levels totaling some 400 m of development, plus other adits in other parts of the property. Work, which dates back to 1910, has concentrated on approximately 2.5 km of the strike length of the structure. The most recent activity began in 1990 with road construction, camp and airstrip followed in 1999-2000 and surface work in 2005 and 2008 where a total of 161 samples were taken. Highlight results from this work includes a channel sample from the Palo de Judas level that returned 2.15 metres of 241 g/t silver and 10.1 g/t gold (Table 1). In 2014, a 700 m diamond drill program operated by the Servicio Geologico Mexicano (SGM, a government run geological agency) successfully tested the San Rafael structure with two holes below and along strike to the northwest of the historic mine workings. Drill hole SR-03-13 completed by SGM intersected 0.46 m of 180 g/t silver from 356.76 m to 357.22 m.
Table 1. San Rafael - Significant Results
| San Rafael Location/Level | Sample # | Sample Type | Width (m) | Au g/t | Ag g/t |
| La Esperanza | 101012 | Channel | 1.40 | 22.08 | 316 |
| La Esperanza Dump | 101018 | Grab | - | 21.33 | 6752 |
| La Esperanza | 27411-27412 | Channel | 4.40 | 11.18 | 96 |
| Palo de Judas | PJ-6 | Grab | - | 5.00 | 1341 |
| Palo de Judas | 154-156 | Channel | 2.15 | 10.1 | 241 |
| Palo de Judas | 159-161 | Channel | 1.80 | 13.89 | 552 |
| El Cedro | 2149-2150 | Channel | 3.00 | 5.63 | 211 |
| El Cedro | 2151 | Channel | 1.20 | 9.35 | 110 |
| El Cedro | 2160 | Channel | 0.80 | 3.70 | 451 |
| La Palma | 2099-2100 | Channel | 1.38 | 2.34 | 319 |
| La Palma | 2101-2102 | Channel | 1.38 | 1.10 | 308 |
| La Palma | 2103 | Channel | 0.90 | 1.05 | 42 |
| La Palma | 2104 | Channel | 1.35 | 1.80 | 101 |
| La Palma | 2107-2108 | Channel | 1.00 | 16.70 | 243 |
Mercado's Qualified Person (QP) has not conducted sufficient work to independently validate the underground sampling or drill core results. Therefore, the Company is treating technical information and data for the San Rafael results as historical in nature and should not to be relied on. The QP will independently verify results of the historic work during a site visit later this year.
La California
The La California project comprises five concessions totaling 3,613 hectares. It lies directly adjacent to the San Rafeal project and is situated approximately 145 km west-northwest of the city of Durango in the northern part of the San Dimas mining district. The project is accessible via a combination of paved and unpaved roads.
The La California vein is a structurally controlled, low-sulfidation epithermal gold-silver system hosted in andesitic flows and tuffs of the Lower Volcanic Group - the same host package as First Majestic Silver's Tayoltita Mine and throughout the San Dimas mining district. The main vein strikes North-South, dips 45-60 degrees Northeast, and has been traced along more than 2 km of persistent outcrop. Width of the vein varies from 2 m to 10 m.
The La California project consists of a historical underground mine that was in operation from 1912 to 1922 with an on-site mill which reportedly processed 20-40 tons of material per day. The historical mine has three levels and only a short portion of the 2 km mineralized structure has been worked. The most recent exploration occurred in 2000, where 15 grab samples were taken including a channel sample that returned 2.50 m of 380 g/t silver and 1.28 g/t gold (Table 2). La California has not received any systematic modern exploration.
Table 2. La California - Significant Results
| La California Location/Level | Sample # | Sample Type | Width (m) | Au g/t | Ag g/t |
| Main Vein | Tajo-1 | Grab | - | 2.51 | 125 |
| San Jorge Block | CA-9462 | Grab | - | 1.02 | 305 |
| San Jorge Block | CA-9463 | Channel | 2.50 | 1.28 | 380 |
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Mercado's Qualified Person (QP) has not conducted sufficient work to independently validate the underground sampling results. Therefore, the Company is treating technical information and data for the La California results as historical in nature and should not to be relied on. The QP will independently verify results of the historic work during a site visit later this year.
Qualified Person
The technical information in this news release has been prepared in accordance with the Canadian regulatory requirements set out in National Instrument 43-101 (Standards of Disclosure for Mineral Projects) and was reviewed and approved by Kelson Willms, P.Geo., of Archer, Cathro & Associates (1981) Limited. Mr. Willms is a Qualified Person for the purposes of National Instrument 43-101
About Mercado Minerals Ltd.
Mercado Minerals Ltd. (CSE: MERC) (OTCQB: MRMNF) is a silver-focused exploration company targeting the next world-class discovery in Mexico's emerging Western Silver Belt, part of the prolific Sierra Madre Occidental mining district. With a proven team boasting extensive experience in Mexican exploration, Mercado is actively advancing multiple projects across more than 3,000 hectares. The Company is committed to creating shareholder value through disciplined exploration, strategic growth, and discovery-driven results.
For further information, contact:
Daniel Rodriguez
CEO & Director
Phone: (604) 353-4080
Email: drodriguez@mercadominerals.com
John Fraser
VP Business Development & Director
Phone: (604) 838-7677
Email: jfraser@mercadominerals.com
Forward-Looking Statement (Safe Harbor Statement):
This press release contains forward-looking statements within the meaning of applicable securities laws. The use of any of the words "anticipate," "plan," "continue," "expect," "estimate," "objective," "may," "will," "project," "should," "predict," "potential" and similar expressions are intended to identify forward-looking statements. In particular, this press release contains forward-looking statements concerning the Company's exploration plans and the intended use of proceeds from the Offering. Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on these statements because the Company cannot provide assurance that they will prove correct. Forward-looking statements involve inherent risks and uncertainties, and actual results may differ materially from those anticipated. These forward-looking statements are made as of the date of this press release, and, except as required by law, the Company disclaims any intent or obligation to update publicly any forward-looking statements.
Neither the Canadian Securities Exchange nor its Regulation Services Provider (as defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.
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