TICKERS: MERC; MRMNF; M2R

6.5 Kilometers of Strike, Two Historic Projects, One Growing Silver-Gold District

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Source: Streetwise Reports (6/8/26)

Mercado Minerals Ltd. (MERC:CSE; MRMNF:OTCQB; M2R:FSE) moved to acquire the adjacent San Rafael and La California projects in Durango, Mexico through five-year option agreements.

Mercado Minerals Ltd. (MERC:CSE; MRMNF:OTCQB; M2R:FSE) announced that it has signed two letters of intent (LOIs) to acquire the adjacent San Rafael and La California silver-gold projects in the San Dimas mining district of Durango, Mexico. According to the company, the acquisitions would create a district-scale land package covering 4,617 hectares with more than 6.5 kilometers of cumulative strike potential in the Sierra Madre Occidental.

The company said the two projects are located in the San Dimas mining district, where past production through December 2024 was estimated at more than 766 million ounces of silver and more than 11.1 million ounces of gold. Mercado stated that the properties span a northwestern-trending structural corridor along the Sierra Madre Occidental silver-gold belt.

Under the terms of the LOIs, Mercado may acquire a 100% interest in both projects through five-year option agreements requiring total cash payments of approximately US$5.6 million. The company stated that larger payments are weighted toward the later years of the agreements and that no royalties or net smelter return royalty payments are associated with the transactions.

"This is exactly the type of opportunity Mercado is looking for," Chief Executive Officer Daniel Rodriguez said in the company news release. "We are now working towards building a truly district-scale presence with kilometers of cumulative vein strike length and numerous highly compelling targets."

The San Rafael project comprises five concessions totaling 1,004 hectares located approximately 154 kilometers west-northwest of Durango. Mercado said the property contains a structurally controlled low-sulphidation epithermal gold-silver system, with the San Rafael fault structure identified along 4.5 kilometers of strike within the concession boundaries. The company reported that historical underground workings include four levels totaling about 400 meters of development. Historical surface work conducted in 2005 and 2008 included 161 samples, with a highlighted channel sample returning 2.15 meters grading 241 grams per tonne silver and 10.1 grams per tonne gold. Mercado also noted that a 2014 drill program completed by Servicio Geologico Mexicano intersected 0.46 meter grading 180 grams per tonne silver.

The company stated that its qualified person has not independently verified the historical sampling or drill results from San Rafael and that the information is being treated as historical in nature until verification work is completed.

The La California project comprises five concessions totaling 3,613 hectares and is located adjacent to San Rafael. Mercado said the property hosts a low-sulphidation epithermal gold-silver system traced along more than two kilometers of outcrop, with vein widths ranging from two meters to 10 meters. The company reported that the historical underground mine operated from 1912 to 1922 and included an on-site mill that reportedly processed between 20 and 40 tons of material per day.

According to Mercado, the most recent exploration work at La California was conducted in 2000 and included 15 grab samples. A highlighted channel sample returned 2.50 meters grading 380 grams per tonne silver and 1.28 grams per tonne gold. The company stated that La California has not received systematic modern exploration.

Mercado noted that its qualified person has not independently verified the historical sampling results from La California and is treating the information as historical pending future verification work.

Precious Metals Strength Supported by Industrial Demand and Long-Term Price Gains

Additional analysis published by GoldFix on June 5 highlighted continued strength in official-sector gold demand, citing a report by UBS strategist Joni Teves. According to World Gold Council data referenced in the report, central banks and other official institutions purchased a net 244 tonnes of gold during the first quarter of 2026, up 3% from the same period a year earlier and above market expectations.

UBS noted that concerns some central banks might reduce gold holdings due to geopolitical uncertainty, elevated real interest rates, and a stronger U.S. dollar had largely failed to materialize. Teves wrote that while central banks may not be driving gold prices higher, their continued purchases have helped limit downside pressure in the market.

The report also addressed reserve changes reported by Türkiye, which had raised questions among investors about official-sector demand. UBS stated that fluctuations in reported gold reserves do not necessarily indicate long-term selling, as reserve figures can be influenced by gold swaps, domestic liquidity operations, and commercial banking activity.

According to UBS, central bank purchases are often misunderstood because official institutions are not typically the primary drivers of short-term price movements. Instead, investor positioning, real interest rates, and currency markets continue to have a greater impact on near-term pricing. However, the report noted that sustained official-sector buying provides an important structural foundation by absorbing physical supply and supporting long-term demand.

UBS also reported that official-sector demand appears to be broadening beyond the traditional group of major central-bank buyers. While some institutions have moderated the pace of accumulation, the report indicated that other sovereign entities, reserve managers, and previously inactive buyers have continued entering the market. GoldFix summarized the trend by noting that while investors had focused on which institutions might sell gold, the data suggest more buyers continue to emerge.

At the same time, market participants remained focused on technical and macroeconomic factors affecting gold prices. CNBC reported on June 5 that gold was trading near its 200-day moving average while testing the 50% Fibonacci retracement level of its previous advance. Analyst Michael Khouw wrote that several momentum and trend indicators had weakened, while inflation concerns linked to the conflict in Iran had increased expectations for a more hawkish Federal Reserve.

Khouw noted that a "higher-for-longer" interest-rate environment has historically been a headwind for gold because the metal does not generate yield and competes with interest-bearing assets. He also said a stronger-than-expected employment report had added to market uncertainty. According to CNBC, activity in the options market reflected continued investor focus on both key technical levels and broader macroeconomic developments affecting the gold sector.

Writing on June 8, commodities analyst Patrick MontesDeOca reported that silver futures continued to follow "the structure of a major 360-day cycle" that began in September 2025. He stated that silver advanced from US$43.47 to US$121.78 between September 2025 and January 2026, describing the move as "an extraordinary rally of approximately 180% in only four months." MontesDeOca wrote that silver remained "one of the strongest-performing asset classes in the commodity sector" and said the metal's price structure continued to exhibit characteristics of a secular bull market driven by "monetary demand, industrial consumption, and tightening physical supply conditions."

According to silver pricing data published June 8, spot silver was quoted at US$67.86 per ounce. Historical performance figures showed silver had gained 16.35% over the previous six months and 88.56% over the prior 11 months despite recent volatility. The pricing report stated that the silver spot price serves as the benchmark for the metal's value and is influenced by global supply, demand, and economic developments. The report also noted that silver investments remained tied to the spot price through physical products such as bullion, bars, rounds, and coins, while exchange-traded funds and futures provided additional exposure to the metal.

District-Scale Expansion Adds to Ongoing Exploration Activity

According to a June 4 report from Jeff Clark and Daniel Flynn of Paydirt, Mercado signed letters of intent to acquire the San Rafael and La California projects, which together total 4,617 hectares in the San Dimas mining district. The authors wrote that the projects "have also seen minimal modern exploration" and that "historic work gives the company a promising foundation for a contemporary re-evaluation."

Clark and Flynn stated that the transaction did not alter their existing investment thesis on the company and wrote that drilling at Copalito was underway, with "encouraging assays" having already been reported. They also noted that the new projects "show the value of Mercado's on-the-ground experience in this part of Mexico" and stated that they "add another bite at the cherry in terms of diversification."

The Paydirt report disclosed a formal rating of "RECOMMENDATION: BUY." Clark and Flynn wrote, "The company still has two strong core projects. It has started drilling, just as promised. Early results are encouraging, and more assays should be coming soon."

Richard Mills wrote on June 7 that Mercado Minerals was "expanding its silver-gold footprint in Mexico by acquiring two adjacent projects totaling 4,617 hectares." He reported that the company had signed letters of intent to acquire the San Rafael and La California projects in the San Dimas mining district of Durango, Mexico. Citing the company's June 2 news release, Mills quoted Chief Executive Officer Daniel Rodriguez as saying, "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 kilometers of cumulative vein strike length and numerous highly compelling targets."

In the same June 7 article, Mills discussed the company's ongoing work at Copalito, noting that Mercado had received assays from the first three holes of its 3,000-meter drill program. He quoted Rodriguez's April 29 statement: "With these first three results, we are proving the continuation of 5 Señores and growing the potential of that structure. We are happy with what we are seeing and looking forward to interpreting and analyzing the next batch of results. We have moved on to testing El Agua Vein and then El Pilar with a similar approach to what we did at 5 Señores."

Mills also referenced an April 21 update on the drill program and quoted Rodriguez as stating, "The goal has been to expand on the known and go test some of the unknown." Rodriguez added, "We see potential to expand on known areas and new areas of interest as the team continues to uncover more through prospecting and sampling."

Advancing Multiple Exploration Programs Across Mexico

In addition to the proposed acquisitions, Mercado stated in its April 2026 corporate presentation that it is fully funded for its current drill program and upcoming exploration activities in 2026.

At the Copalito project in Sinaloa, the company reported that an inaugural 3,000-meter diamond drill program is underway. Mercado said the program is designed to test extensions of known veins, conduct infill drilling, evaluate targets at depth, and drill newly identified targets. The company noted that previous operators completed 81 diamond drill holes between 2020 and 2021 and that drilling has tested approximately 60% of the known strike length of the veins to an average depth of 100 meters.

Mercado stated that the 2026 drill campaign is planned to test four high-priority targets at 5 Señores, El Agua, and La Chivas. The company also reported that ongoing structural interpretation is being used to refine drill targeting with the objective of testing thicker and higher-grade vein segments. In addition, Mercado identified potential exploration targets along northwesterly vein extensions supported by completed drone magnetic and LiDAR surveys.

Streetwise Ownership Overview*

Mercado Minerals Ltd. (MERC:CSE;MRMNF:OTCQB;M2R:FSE)

Restructures

No Restructures for This Company

^*Share Structure as of 6/8/2026

At the Zamora project, Mercado said it holds four concessions covering 378 hectares and retains the rights to potentially bring an additional 2,999 hectares of concessions back into good standing. The company reported that the property hosts more than eight kilometers of cumulative strike associated with 14 historic silver-gold mines that have not been drill tested.

Mercado stated that 2026 activities at Zamora include land consolidation efforts related to the approximately 3,000 hectares of concessions being brought back into good standing. The company also plans systematic surface and underground sampling programs designed to define initial drill targets across 14 high-grade silver-gold vein occurrences.

The company said these exploration activities form part of its 2026 catalyst program alongside the ongoing drilling at Copalito and evaluation of its broader silver-gold project portfolio in Mexico.

Ownership & Share Structure¹

Mercado Minerals Ltd. has a market cap of CA$16.09 million, with 75 million shares outstanding. The company's 52-week range is CA$0.10-CA$0.49.

Management and Insiders own 6.5% of shares, while Strategic Investors own 27.9%. The remaining 65.6% of shares are held by Retail.

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Important Disclosures:

James Guttman wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.

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1. Ownership and Share Structure Information

The information listed above was updated on the date this article was published and was compiled from information from the company and various other data providers.

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