Morgain applies for Mexican incentive

Toronto-based Morgain Minerals (VSE) is one of the first Canadian juniors to apply for Mexico’s new exploration and exploitation incentive program.

Under the program, the Mexican government will finance juniors for up to 70% of their exploration expenditures to a maximum of US$500,000, providing the project has an established reserve.

For mine development, companies may claim up to US$5 million per project. Morgain plans to use the program (to be introduced in the province of Sonora sometime this summer) to finance drilling on its Cuatro Hermanos copper property, 90 miles southwest of Hermisillo.

Morgain is earning a 100% interest in the property, where preliminary reserves stand at 200 million tons grading 0.43% copper and 0.022% molybdenum sulphide, in exchange for cash payments and a 15% net profits interest. The property also has copper oxide potential.

Although it is focusing mostly on Mexico, Morgain also has extensive holdings along the Molanosa Arch diamond area in central Saskatchewan, a diamond property in the Central African Republic and a base metal prospect in New Hampshire under option to Aur Resources.

The company plans to complete an airborne geophysical survey over at least six different portions of its Molonosa Arch claims by mid-June.