Canada’s Farallon Mining is planning to build a second mine at Mexico’s Campo Morado due to rapid rises in gold price.

Farallon is initiating feasibility studies to assess four deposits on the Morado property and expects to start the mine by 1 July 2013.

The deposits are expected to have total resources of 960,000oz of gold and 60 million ounces of contained silver.

Farallon said the value of the deposits has increased significantly in combination with the mine and mill infrastructure that is already in place.

The company already operates the G-9 zinc mine on its Campo Morado property in Mexico’s Guerrero State with a production rate of 1,500t a day.