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Durango State, Mexico

Land Area
1,866 hectares

Property Description
Gold-silver open pit mine located 80km (115km by road) from Velardeña

Gold and silver

100% owned; 2 claims

Project Stage

Current Activities & Work

Complete and current


Rodeo is a 1,866-hectare gold project located in Durango State, Mexico approximately 80 kilometers (115 km via road) west of the Company's Velardeña Properties and processing mills. We began gold & silver production at Rodeo in January 2021. We are transporting the material via truck to our oxide mill at Velardeña for processing, where in April 2021 we installed a second regrind mill used in the production process given the harder characteristics of Rodeo's mined material. Processing began at a rate of approximately 200 tonnes per day in January, then reached the 450 tonnes per day production throughput goal in late April 2021 when we commissioned a second ball mill. The company announced a first pour of gold-silver doré bars on schedule at the end of January 2021.

Rodeo is a small but profitable mining operation that generated over $25M in revenue and $12M in net operating margin in 2021. We completed a drilling program in late 2021 at Rodeo that has expanded the resource to the southeast of the current pit and also to a lesser extent at the north end of the pit. The drill program added around six months of mine life to the project, and we currently anticipate operating profitably at Rodeo through the third quarter 2023.

Production Highlights

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2022 Production Forecast

For full year 2022, as of November 10, 2022 we estimate processing 175,000 to 185,000 tonnes of material through our oxide plant at an average rate of around 520 tonnes per day. Payable extraction is estimated at approximately 12,000 to 14,000 oz of gold and 47,000 to 50,000 oz of silver.  Rodeo’s average grades in 2022 are expected be around 2.8 g/t for gold and 10.8 g/t for silver. These grades are lower than what was mined in 2021, as we work into lower-grade parts of the resource, but they are in line with the mine plan. Mill recoveries are expected to remain around current levels of 75%-80% for gold and 80% to 85% for silver. Higher anticipated total throughput in the plant in 2022 compared to 2021 will offset the lower gold grades anticipated for 2022, resulting in similar payable gold extraction in 2022 as we had in 2021, but at a higher unit cost. Cash costs per payable gold ounce, net of silver byproduct credits, are expected to be approximately $1,300 during 2022, higher than the $1,100-$1,200 range estimated in early 2022.


Tonnes Processed 175,000 – 185,000
Average plant throughput 520 tpd
Mill recoveries Approx. 75%-80% for Au and 80% to 85% for Ag
Payable extraction 12,000 -14,000 oz Au and 47,000 - 50,000 oz Ag
Net Operating Margin $6.0 - $8.0 million
Average grades (g/t) 2.8 g/t Au; 10.8 g/t Ag
Cash costs per payable Au oz, net around $1,300/oz

2022 Technical Report Summary 

In March 2022, the independent firm of Tetra Tech completed a Technical Report Summary ("TRS") for the Rodeo project. The purpose of the report is to summarize the results of an Initial Assessment for the property as defined under the U.S. Securities and Exchange Commission’s Regulation S-K 1300. This is the first TRS prepared for the Project under S-K 1300 guidelines.

The Rodeo mine is currently in operation and the Rodeo TRS assumes a life of mine (“LOM”) starting point of November 1, 2021. The TRS assumes prices of $1,800/ounce (“oz”) gold (“Au”) and $25.00/oz silver (“Ag”). Mineral resources were calculated having an effective date of October 31, 2021 with a cutoff grade of 1.6 grams per tonne (“g/t”) for processing and 1.0 g/t for stockpiling.

Operating and Capital Costs

Required capital costs for the Rodeo mine consist of an estimated $0.4 million for closure and reclamation. No additional capital is required at the mine. No capital costs are estimated for Plant 2 for the life of the Project. Estimated operating costs are shown below.

Description LOM Cost ($000s) Unit Cost
Mining $3,790 $10.79
Processing $18,278 $52.04
G&A $1,352 $3.85
Total $23,421 $66.68

Economic Analysis

The LOM (life of mine) consists of 24 months of operation and assumes 12 months to perform closure and reclamation. The starting point for the LOM is November 1, 2021. The pre-tax net present value (“NPV”) of the project is $22.9 million using a discount rate of 8%. Royalties are calculated at 2% for La Cuesta and 0.5% for the Mexico precious metals royalty.

Description   Unit Cost
Total Value
NSR1   $141.70 $49,767
  Net Revenue $141.70 $49,767
Operating Costs    
  Mining $10.79 ($3,790)
  Processing $52.04 ($18,278)
  G&A $3.85 ($1,352)
  Operating Costs $66.68 ($23,421)
  Operating Margin $75.01 $26,346
Capital Costs    
  Mining - $0
  Process Plant   $0
  Infrastructure - $0
  Closure - ($447)
  Capital Costs - ($447)
  La Cuesta Royalty - ($995)
  Mexico Precious Metals Royalty - ($249)
  Pre-Tax Cash Flow - $24,655
  Pre-Tax NPV 8% - $22,928

Location, Access and Facilities

Rodeo is located two kilometers east of the town of Rodeo in Durango State, Mexico and is accessed by a short stretch of unpaved road from the Nazas-Rodeo highway. Basic amenities are available in the town of Rodeo. The property is located approximately 80 kilometers west of our Velardeña Properties -- within trucking distance of the oxide mill at Velardeña.

Title and Ownership

We own the Rodeo and Rodeo 2 claims covering 1,866 hectares of land located 80 kilometers west of our Velardeña Properties in Durango State, Mexico. Golden acquired the Rodeo property subject to a royalty interest (due to La Cuesta International) in 2015.

Mineral Resources Estimate - Estimated Rodeo Resources for stockpile and processing
as of December 31, 2021
Classification Cutoff Au (g/t) Tonnes Au (g/t) Au (oz) Ag (g/t) Ag (oz)
Low-Grade (Stockpile)
Measured 1 201,100 1.24 8,000 10.18 65,800
Indicated 1 55,500 1.18 2,100 5.21 9,300
Measured + Indicated 1 256,500 1.23 10,100 9.11 75,100
Inferred 1 1,500 1.21 100 4.10 200
Measured 1.6 286,100 3.00 27,600 13.37 123,000
Indicated 1.6 43,500 3.17 4,400 10.66 14,900
Measured + Indicated 1.6 329,600 3.02 32,000 13.02 137,900


1. Source:  Tetra Tech, March 2022. “Rodeo Project Technical Report Summary.” Initial Assessment for the property as defined under U.S. SEC Regulation S-K 1300. The Rodeo mine is currently in operation and the Rodeo TRS assumes a life of mine (“LOM”) starting point of November 1, 2021.
2. The TRS assumes prices of $1,800/oz Au and $25.00/oz Ag. Mineral resources were calculated in the TRS having an effective date of October 31, 2021 with a cutoff grade of 1.6 grams per tonne for processing and 1.0 g/t for stockpiling. After adjusting for mineral extraction at Rodeo for November and December 2021, the estimate of mineral resources at the Rodeo Property at December 31, 2021 is shown in the table above. Aaron Amoroso, an employee of the Company and “qualified person” pursuant to S-K 1300, prepared the estimate.  

Geology & Mineralization

The Rodeo concessions lie on the eastern boundary of the Sierra Madre Occidental, a dissected volcanic plateau elongated in a NNW direction.  It is approximately 1,200 km long with an average altitude of approximately 2,000 m above sea level.  The geology of the Sierra Madre Occidental is divided into two principal volcanic groups:

  • Upper Volcanic Supergroup (27-34 mya):  Rhyolitic and rhyodacitic ignimbrites, caldera complex with associated high level intrusives, minor andesites, and mafic lavas
  • Lower Volcanic Complex (45-100 mya):  Andesitic to rhyolitic extrusives, intruded by batholithic complexes

The formation of these volcanic complexes can be related to late Mesozoic and Tertiary subduction processes along the Middle America Trench.  The dominant structural event affecting these rocks, particularly the Upper Volcanic Supergroup, is a tensional one, possibly coeval with the spreading episode which was opening the Gulf of California to the Northwest.  This event led to the formation of a complex of normal faults within and on the margins of the volcanics.  Displacements on these faults is never very great, particularly on the eastern margin of the Sierra Madre Occidental but tilting of structural blocks was extensive.  Wedges of coarse clastic rocks now fill the associated half grabens.  A number of these faults have been the loci of possible late-stage volcanic alteration/silicification/mineralization events which are the targets for exploration efforts.

The immediate Rodeo deposit area is approximately 300 m along strike and 200 m wide and extends to a depth of 200 m below surface.  The deposit strikes at 330° and dips to the ENE with various vein phases dipping from sub-vertical to 30°.  The deposit is entirely hosted within Tertiary Rodeo volcanics, which are strongly silicified and brecciated.  The deposit is bound to the east by the Rodeo Fault, however drilling to date has not demonstrated that the deposit reaches or is truncated by the fault.  Along strike to the north and south, the mineralization is offset slightly by near vertical faulting; mineralization does not terminate at these faults, but the intensity of the trend is either diminished or has yet to be located.

Mineralization at the deposit is epithermal low-sulfidation (quartz-adularia) type.  Although very little mineralization is hosted in or centered on the Rodeo Fault itself, it is likely the fault played a role as a pathway at depth for the Rodeo deposit.  Quartz veins 15 m or greater in width have been located throughout the property.  The high-grade Au mineralization appears limited to a distinctive veining event.  Evidence of ancillary veining events pre- and post-dating the high-grade event carry low-grade to anomalous level of Au mineralization.

Rodeo 2021 Expansion Drill Program

Final Drill Results, reported November 10, 2021

Earlier Drill Programs

Rodeo 2020 Drill Program: Final Drill Results, reported October 1, 2020

Rodeo 2016 Drilling Results, reported September 1, 2016