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The Mining and Exploration News in Mexico: Highlights on the Fifth Week of March 2023

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By Jorge Cirett                                             

During the 13th week of the year (March 27th to April 2nd, 2023), 18 companies working in Mexico released news on their properties. Two companies informed on exploration on their properties, three companies informed on Q4 and year 2022 financial and operational results. Two companies closed partial or complete share placements. Two companies filed technical reports on their properties, two more released drilling results on their advanced properties and two more updated mineral resource estimates for their properties. Two companies announced the completion of the acquisition process on mining projects. ON MEXICO ISSUES, the Mexican president sent an initiative to change the Mining Law that is likely to strongly impact the mineral exploration industry. ON EXPLORATION, In Sonora, Tocvan Ventures provided an update on bulk sampling at its Pilar property; Reyna Gold is to drill its La Gloria project. ON MINING, Mag Silver, Sierra Metals and Avino Silver released Q4 2022 financial reports. ON FINANCING, Silver Spruce closed a private placement for $1.13 M, Golden Tag closed the first tranche of a non-brokered private placement. ON RESOURCES AND DEVELOPMENT, Alamos Gold and Sonoro Gold filed NI-43-101 technical reports on the Mulatos and Cerro Caliche properties respectively, both in Sonora. GoGold Resources released drilling results from Los Ricos South project in Jalisco. Oroco Resource informed on drilling at the Santo Tomás project in Sinaloa. Argonaut Gold updated on mineral resources at five of its properties in Mexico. Aura Minerals reported on mineral reserves and resources at Aranzazu, in Zacatecas. ON DEALS AND CORPORATE ISSUES, Argonaut Gold completed the sale of the Ana Paula project in Guerrero to Heliostar Metals. Sierra Metals completed the acquisition of La Guitarra project, in Estado de Mexico, from First Majestic Silver. ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUES

  • The president of México, Andrés M. López Obrador sent to Congress an initiative to reform the Mining Law, National Water Law, Ecological Equilibrium Law and Environmental Protection and the General Law for Prevention and Integral Management of Residues relating to Mining and Water Concessions. The initiative displays a heavy ideological charge on the exposition of motifs, full of propaganda epithets against the “neoliberal” current state of affairs on these matters. Any good specific proposal within the initiative is overwhelmed by the sheer amount of new rules designed for the State to have a firm grip on the industry, many of which involve granting the government power to decide when to take away a concession on flimsy grounds, raising the uncertainty level for mining investment in Mexico. Some takeaway points that drastically change how the mining industry is operating in Mexico include: The government is to perform auctions for mining concessions (no more staking). Mining activities are no longer considered to have priority over other land uses. No land expropriation on mining grounds. Social impact studies to be conducted before any exploration takes place. Public consultations with “towns”, indigenous (which by the way are auto ascribed) and afro-Mexican communities. Reduction of mining concessions rights from 50 to 15 years, that could be renewed only once (more than a few operations in Mexico have been continuous for far longer periods). Mining concessions are conditioned to water “availability” (yes, the government decides, unconstrained, when there is available water, anytime). No private transmission of mining concessions without government consent (again, absolute power to the government). Added cancellation causes include lack of report in possible harm or risks to ecological equilibrium, lack of permits, concessions or authorizations from other authorities and lack of closing programs or management of residues. The only way to obtain a concession is to be by government auction (Concurso). Limits mining concessions coverage to only one element (you have to wonder on the genius that came with this proposal). The list continues, but in a first pass reading those above come as the most likely to cause an exodus of investment in mining exploration in Mexico. Mines are to continue operating, and advanced properties are likely to continue to development, but the Mexican exploration industry is about to halt when this initiative is approved, as the government has the required number of votes secured in Congress. Dialogue between industry entities and the government should take place before this initiative is voted, because better alternatives should be sought in order to achieve a better operating mining industry. Alternative options agreed upon should both improve the effect of mining operations in communities and the environment while promoting investment, thus helping Mexico’s development as a whole.         

ON EXPLORATION

  • Tocvan Ventures Corp. provided a progress update on the first bulk sample at the Pilar project in Sonora. Over 1,200 tonnes of material have been stockpiled with the first shipments completed. Four head-grade samples averaged 6.2, 7.6, 1.3 and 7.6 gpt Au. “Diagnostic leach tests are ongoing and were collected from four trench areas and one select drill core coarse reject sample. Preliminary results from the study suggest free gold is present in the samples and has been confirmed visually by testing sieved…. Up to 1,000 tonnes of oxide-gold material will be extracted from select areas….. The information provided from the sample will be used for planning in coordination for permitting of full-scale mine and process facilities on-site at Pilar”.
  • Reyna Gold Corp. announced the mobilization to recommence a minimum of 5,500 m of diamond drilling at its 24,215 ha La Gloria property in Sonora. The program is focused on four targets: La Republicana, Western, Las Carmelitas and Main Zone. At La Republicana drilling “will test extensions to the La Republicana Main Vein, which produced 59.00m of 1.45 g/t Gold in Phase 1 drilling”, on the 1 km long vein with significant anomalies delineated by an induced polarization survey. At Western, abundant quartz veining with Au-Te high-grades are to be tested. At Las Carmelitas high Cu, Ag, Sb assays have been obtained in a large conglomerate/agglomerate system. At the Main Zone, follow-up is to test on phase-1 drilling that returned 5.5 m @ 935 gpt Ag; 7.85 m @ 3.94 gpt Au; 30.60 m @ 0.51 gpt Au.

ON MINING

  • Mag Silver Corp. announced consolidated financial results for 2022. Commissioning of the Juanicipio plant in Zacatecas commenced in early January 2023, after the entire system was connected to the national power grid in late December 2022. During the year 646.1 K tonnes were processed thorough the Fresnillo and Saucito plants, producing 8.7 M Oz Ag, 20,268 Oz Au, 4,487 tonnes Pb, 6,758 tonnes Zn, netting $132.8 M in gross profit by Juanicipio (56% Fresnillo PLC, 44% Mag Silver).  At the end of 2022 Mag Silver had 29.2 M of working capital, with no long-term debt. The company closed a $42.6 M bought deal public offering on February 2023.
  • Sierra Metals Inc. presented Q4 and year-end 2022 consolidated financial results. The company has operations in Chihuahua and Peru, but no production details by unit were presented. Sierra Metals obtained $46.2 M in revenue during the year, with an adjusted EBITDA of $13 M, a net loss of $88.3 M. The company had cash and cash equivalents of $5.1 M and negative working capital of $84.4 M. For 2023 the production guidance at Bolivar, in Chihuahua, envisions a production of 34.5 – 39.5 M Lb CuEq at cash cost $2.99 per Lb CuEq and an AISC of $5.07 per Lb CuEq. At Cusi, in Chihuahua, an undisclosed amount of silver ounces was produced at cash cost $16.77 per Oz AgEq and an AISC of $23.17 per Oz AgEq.
  • Avino Silver & Gold Mines Ltd. released consolidated financial results for Q4 and year-end 2022. During the year, the Avino mine in Durango milled 541.8 K tonnes to produce 985 K Oz Ag, 5,778 Oz Au, 6.5 M Lb Cu (or 2.65 M Oz AgEq), at cash cost $10.34 per Oz AgEq and an AISC of $17.91 per Oz AgEq. In the year the company had revenue of $44.2 M, ending the period with a $11.2 M cash balance and $8.8 M in working capital.

ON FINANCING

  • Silver Spruce Resources Inc. closed a private placement for $1.13 M in proceeds (Diamante, Sonora).
  • Golden Tag Resources Ltd. closed the first tranche of the previously announced non-brokered private placement, aiming to raise $5.7 M in aggregate gross proceeds (Don Diego and La Parrilla, Durango).

ON RESOURCES AND DEVELOPMENT

  • Alamos Gold Inc. announced the filing of a NI43-101 compliant technical report for its Mulatos property in Sonora.
  • Sonoro Gold Corp. reported the filing of a NI-43-101 compliant technical report on the mineral resource estimate at its Cerro Caliche project in Sonora. The report includes indicated resources of 19.9 M tonnes @ 0.44 gpt Au, 3.5 gpt Ag, containing 280 K Oz Au, 2.2 M Oz Ag, and inferred resources of 10.5 M tonnes @ 0.42 gpt Au, 4 gpt Ag, containing 140 K Oz Au, 1.3 M Oz Ag. The resources are amenable to a combination of open pit and heap leach extraction.
  • GoGold Resources Inc. announced drilling results from the Eagle and Main deposits at its Los Ricos South project in Jalisco. Highlighted core length intervals comprise 23.3 m @ 7.07 gpt Au, 86 gpt Ag (including 2.7 m @ 45.01 gpt Au, 106 gpt Ag); 39.9 m @ 1.28 gpt Au, 87 gpt Ag; 16.3 m @ 1.09 gpt Au, 28 gpt Ag; 18.2 m @ 1.72 gpt Au, 118 gpt Ag; 13.9 m @ 3.63 gpt Au, 144 gpt Ag. “The purpose of the program is to better define the very high-grade portions of the current deposit that may be amenable to bulk underground mining. The Company is carrying out a trade-off study to better define what portion of the deposit could be mined in a lower strip ratio pit and what portion would best be mined in more selective bulk underground mining”.
  • Oroco Resource Corp. released results from drilling at the South Zone of the Santo Tomás project in Sinaloa. Highlighted core length intervals estimated to be within 10% of true width comprise 221.7 m @ 0.023 gpt Au, 2 gpt Ag, 0.37% Cu; 145.0 m @ 0.008 gpt Au, 2 gpt Ag, 0.25% Cu; 89.0 m @ 0.011 gpt Au, 2 gpt Ag, 0.31% Cu (including 25.0 m @ 0.020 gpt Au, 4 gpt Ag, 0.74% Cu); 81.0 m @ 0.011 gpt Au, 1 gpt Ag, 0.20% Cu. “Historical drilling, surface geological mapping, and the Dias Geo 3D Induced Polarization survey have defined near-surface mineralization projected to 400 m below the surface along 2,000 m of strike length in the South Zone”.
  • Argonaut Gold Inc. updated its mineral resources to the end of 2022, including figures from its Mexican properties. The following table shows the resources on its Mexican properties, which at the end of 2022 comprised proven and probable reserves of 2.3 M Oz Au, 51.7 M Oz Ag, 86 K tonnes Cu, 5.6 M Oz Au, 94.9 Oz Ag, 187 K tonnes Cu in measures and indicated resources and 603 K Oz Au, 17.1 M Oz Ag, 5 K tonnes Cu in inferred resources.
  • Aura Minerals Inc. reported updated mineral reserves and resources for its operating mines, including from its Aranzazu mine in Zacatecas, to the end of 2022. Proven and probable mineral reserves stand at 9.6 M tonnes @ 0.81 gpt Au, 17.61 gpt Ag, 1.23% Cu, containing 249 K Oz Au, 5 M Oz Ag, 259 M Lb Cu. Measured and indicated resources comprise 15.1 M tonnes @ 0.97 gpt Au, 21.15 gpt Ag, 1.44% Cu, containing 471 K Oz Au, 10.4 M Oz Ag, 477.3 M Lb Cu. Inferred resources stood at 4.3 M tonnes @ 0.55 gpt Au, 16.37 gpt Ag, 1.04% Cu, containing 76 K Oz Au, 2.3 M Oz Ag, 99 M Lb Cu.

ON DEALS AND CORPORATE ISSUES             

  • Argonaut Gold Inc. announced the completion of the sale of the Ana Paula project in Guerrero to Heliostar Metals Ltd. The deal involved US$10 M in cash upon closing and US$20 M in deferred cash and share considerations. The project has 1 M Oz Au @ 2.36 gpt Au in proven and probable mineral reserves, is permitted for an open pit and potential for underground mining, with 142,000 m of drilling in 333 holes.
  • Sierra Madre Gold and Silver Ltd. announced the completion of the acquisition of the La Guitarra property in Estado de Mexico. Sierra Madre issued to First Majestic Silver Corp. 69 M shares for it to maintain a 19.9% interest on Sierra Madre, shares that are to be released by an escrow on four equal installments between September 2023 and March 2025. The company opened a brokered private placement on September 2022, intending to raise up to $10 M. The common shares are halted from trading, and are expected to resume trading following the closing of the common share offering.  

ON SOCIAL RESPONSIBILITY

  • Avino Silver & Gold Mines received for the first time in 2022 the ESR (Empresa socialmente responsible) award “granted by the Mexican Center for Philanthropy (El Centro Mexicano para la Filantropia or Cemefi, and the Alliance for Corporate Social Responsibility (Alianza por la Responsabilidad Social Empresarial or (AliaRSE))”.

On the image below: Porphyritic felsic dike on a project in the Sonoran Desert. Picture by Jorge Cirett.

The Mining and Exploration News in Mexico: Highlights on the Second Week of December 2022

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By Jorge Cirett

During the 49th week of the year (December 5th to December 11th, 2022), 15 companies working in Mexico released news on their properties. Two companies posted exploration updates on their properties, two more companies informed on private placements, while one signed a concentrate pre-payment facility and two companies updated on work at its advanced properties. On a busy week for deals, four companies announced agreements on the purchase of five properties.  ON MEXICO ISSUES, a tit for tat of declarations between the Secretaría de Economía and Camimex reflected the state of affairs between the government and the mining industry for the last four years. ON EXPLORATION, in Sonora, Colibri Resource recommenced drilling at Evelyn. In Jalisco, Almadex Minerals released drilling results at San Pedro. ON MINING, no relevant news. ON FINANCING, Prismo Metals and Silver Viper informed on their private placements for $3 M and $335 K respectively. Guanajuato Silver Company informed on a new $5 M concentrate pre-payment facility. ON RESOURCES AND DEVELOPMENT, Torex Gold released drilling results from El Limón Sur Deep drilling, including the highest grade-m interval for Mexico so far in the year. Endeavour Silver released a new resource estimate for its La Pitarrilla project in Durango. ON DEALS AND CORPORATE ISSUES, Argonaut Gold and Heliostar Metals signed agreements for the purchase of the Ana Paula and San Antonio projects, in Guerrero and Baja California Sur respectively. Prime Meridian Resources optioned the Chuin project in Sonora from private vendors. Capitan Mining optioned from Fresnillo PLC a mining concession adjacent and in projection of mineralization at its Cruz de Piedra project in Durango. Golden Tag Resources is to acquire First Majestic Silver’s La Parrilla project in Durango. ON SOCIAL RESPONSIBILITY, one company informed on the receipt of an award in environmental and sustainability compliance.

ON MEXICO ISSUES

  • According to IMSS (Instituto Mexicano del Seguro Social) there are 421,833 mining industry direct employees in Mexico, same that in 2021 generated 2.5% of the GDP, or 34,782 million pesos (US$16.5 billion dollars). The country is within the ten top producers of fluorite, sodium sulfate, wollastonite, celestite, lead, molybdenum, barite, diatomite, magnesium sulfate, zinc, salt, gypsum, cadmium, gold, feldspar and copper, and the top silver producer during the last 13 years. Workers in the industry earn an average of 23,366 pesos per month.     
  • Camimex (Cámara Minera de México) expects Mexico’s investment in mining to surpass US$5 billion (5,000 million pesos). Jaime Gutiérrez, president, pointed that it occurs under the contrast of high metal prices and national policy regulatory hurdles. Karen Flores, director, expressed that the risk in mining is major in exploration, diminishing as the project advances to the mining stage. Another obstacle is the discretionary granting of permits, highlighting the need of a clear and objective decision-making process. Stressed also was the need to have public policies that favor the investments in clean energies, as these are crucial for the competitiveness of the country.
  • Raquel Buenrostro, head of the Economy Secretariat (Secretaría de Economía or SE) indulged herself in a barrage of accusations to the mining industry, pointing that it pays nearly zero taxes in proportion to its earnings, and is one of the industries with more corruption related to the Secretaría de Economía. She indicated that this is one of the reasons why the government has not granted mining concessions for the last four years, further adding that mining companies are no innocent entities, having problems the World around. “After hydrocarbons, the strongest smuggling is that of mining” she stressed, “more than textiles, shoes and clothing”. According to her numbers, mining companies pay 0.002% of its total earnings, compared to 2.4% of major contributors or between 30 and 35% for employees. She also commented on the case of a foreign company that using a twisted argument decided not pay taxes for ten years, while the case if reviewed by the Supreme Court. “Concessions, concessions and concessions were granted, some without complying with the law, some granted more than once, and those who have concessions do not comply with the obligations that should be covered…. the problem of corruption is strong, and I believe that this is one of the areas with biggest corruption problems in the Secretaría de Economía (Note of editor. The points of view of Raquel Buenrostro mimic those of the president, Andrés Manuel López Obrador, which is strongly critical of all private industries, including mining. More than a decade ago, while bidding for the presidency, he had expressed that no mining concessions were to be issued under his term. He’s true to his word, at least in this respect).
  • Camimex (Cámara Minera de México) replied to Raquel Buenrostro, Secretary of Economy (See above) that the companies affiliated to the entity comply in time with its fiscal obligations, including special taxes that only miners pay. The mining industry conveys more resources for the federal coffers than other productive sectors, according to information from the Secretaría de Hacienda y Credito Público. Camimex argues that its enterprises generate more than 400 K direct jobs, and 2.6 M indirect jobs, with an average salary that is 37% higher than the national one. Also, studies by UNAM (Universidad Autónoma de México) show that the municipalities and localities with mining activity have greater levels of economic and human development than the national average. The letter ended “We miners are proud of our activities, the responsible and committed companies in Camimex will continue contributing to the economic development and social wellbeing in the country. We reiterate our commitment and absolute will and interest to establish the dialogue and collaboration with the authorities that are conducive to the strengthening of the sector and the country”.

ON EXPLORATION

  • Colibri Resource Corp. re-commenced phase-2 reverse circulation drilling at the Evelyn property in Sonora. Five holes are planned with 2,000 m of drilling to test induced polarization targets from the 2021 geophysical survey, a second objective is to explore under extensive alluvial cover drilling a number of short holes and sample the top of the bedrock. A soil sampling program has been recently completed, and samples sent for “Gas Soil Hydrocarbon” testing.
  • Almadex Minerals Ltd. released drilling results from its first hole at the San Pedro project in Jalisco. The highlighted core length interval is 4.51 m @ 657 gpt Ag, 0.03 gpt Au (including 2.0 m @ 1,090 gpt Ag, 0.07 gpt Au). Almadex describes a breccia with silicified fragments in sericitic alteration, with galena and sphalerite occurring in the matrix and in fragments. These characteristics point to an intermediate sulfidation epithermal system, although other options have not been ruled out at this stage. “The San Pedro project covers a large area of acid sulphate alteration, including zones previous described as vuggy silica. Recent Terraspec analysis indicates sericitisation superposed on propylitic alteration in the mineralised zones with acid sulphate alteration occurring at the north”.

ON MINING

  • No Relevant News.

ON FINANCING

  • Prismo Metals Inc. announced that the private placement for up to $3 M has been fully allocated.  (Palos Verdes, Sinaloa).
  • Guanajuato Silver Company Ltd. signed a new concentrate and pre-payment facility with Ocean Partners Ltd., to provide a US$5 M revolving credit facility for operating and working capital purposes. GSilver also completed its previously announced shares-for-debt transaction to settle C$1.13 M (El Cubo, Guanajuato).
  • Silver Viper Minerals Corp. closed the first tranche of its $2 M private placement announced in November, for aggregate gross proceeds of $334.6 K (La Virginia, Sonora).

ON RESOURCES AND DEVELOPMENT

  • Torex Gold Resources Inc. reported assays results from step-out and infill drilling at El Limón Sur, targeting underground mineralization as well as open pit mill feed at its El Limón Guajes mine complex in Guerrero. Highlighted core length results comprise 15.96 m @ 87.60 gpt Au, 15 gpt Ag; 0.15% Cu (including 4.46 m @ 163.51 gpt Au, 21 gpt Ag and 3.82 m @ 166.94 gpt Au, 23 gpt Ag, 0.20% Cu); 22.81 m @ 25.31 gpt Au, 122 gpt Ag, 3.45% Cu (including 3.00 m @107.63 gpt Au, 259 gpt Ag, 6.18% Cu); 20.52 m @ 9.49 gpt Au, 63 gpt Ag, 0.21% Cu; 18.72 m @8.10 gpt Au, 24 gpt Ag, 0.95% Cu; 9.90 m @ 15.19 gpt Au, 43 gpt Ag, 0.56% Cu; 17.85 m @ 13.39 gpt Au (including 2.25 m @ 90.05 gpt Au); 7.70 m @ 22.99 gpt Au, 8 gpt Ag, 0.18% Cu; 3.99 m @ 43.24 gpt Au, 25 gpt Ag. These strong results add the El Limón Sur Deep to the previously identified potential mining front at Sub-Sill South. “The style of mineralization at El Limón Sur Deep is like Sub-Sill and ELD, and is characterized by gold, with locally high silver and copper grades. Gold occurs in variably sulfidized, pyrrhotite-rich skarn, while silver and copper mineralization is controlled primarily by the degree of sulfidation of the host skarn. Mineralization is mainly associated with retrograde alteration characterized by the occurrence of phlogopite, amphibole, chlorite, calcite and lesser amounts of quartz and epidote, and local magnetite”.
  • Endeavour Silver Corp. filed a NI-43-101 technical report with a resource estimate for the recently acquired (July 2022) La Pitarrilla project in Durango. Total indicated resources, open pit and underground, oxide and sulfide, stand at 158.6 M tonnes @ 96.4 gpt Ag, 0.31% Pb, 0.74% Zn, containing 491.6 M Oz Ag, 1.1 billion Lb Pb, 2.6 billion Lb Zn or 693.9 M Oz AgEq. Inferred resources, open pit and underground, oxide and sulfide, comprise 35.4 M tonnes @ 87.2 gpt Ag, 0.36% Pb, 0.85% Zn, containing 99.4 M Oz Ag, 281 M Lb Pb, 662 M Lb Zn or 151.2 M Oz AgEq.

ON DEALS AND CORPORATE ISSUES

  • Argonaut Gold Inc. entered into a binding purchase agreement with Heliostar Metals Ltd. for the sale of the Ana Paula project in Guerrero. The deal involves a cash payment of US$10 M at closing, US$5 M in Heliostar shares when either an extension to the current mining permit or a new underground mining permit is granted, US$2 M on the completion of a feasibility study (FS), US$3 M in cash and US$2 M in shares on construction announcement and US$5 M in cash and US$3 M in Heliostar shares on announcement of commercial production.
  • Argonaut Gold Inc. entered into an option agreement with Heliostar Metals Ltd. for the sale of the San Antonio project in Baja California Sur. Heliostar is to pay Argonaut US$80 M if the gold price is below $1,800 per ounce for the six months preceding the exercise of the option, US$120 M if the price is in the US$1,800 to US$2,000 per ounce range in the same period, or US$150 M if the gold price is above US$2,000 per ounce in the said period. A 2.0% NSR is to be paid to Argonaut if the option is exercised. The term of the option is for three years, that can be extended for 18 months if Heliostar is able to acquire an environmental permit from SEMARNAT, the environmental regulator (Note of editor. – which is unlikely to occur on this presidential term, ending in 2024).
  • Prime Meridian Resources Corp. executed two letters of intent for the option to purchase up to 100% interest in the 3,792-hectare El Chuin copper project in Sonora. The project encompasses an interpreted porphyry copper target, with small scale mine workings developed in veins, disseminations and replacement style mineralization. The main target areas are Samaniego, La Gloria and Nogales. The option envisages the payment of US$30 K on year one, US$50 K and 250 K shares on year two, US$50 K and 500 K shares on year three, US$50 K and 1 M shares on year four and US$50 K and 1.5 M shares on year five, for a total of US230 K and 3.25 M shares, plus US$2.22 M of investment on the property. The current property owner retains a 1% NSR that can be bought for US$1.5 M. A second purchase option requires the payment prior to the 5th year anniversary of US$250 K for the La Gloria concession, US$250 K for La Gloria II concession and US$1 M for the Nino Luis concessions. “The El Chuin concessions are currently not in good standing and PMR will be obliged to bring the concessions to good standing. No payments to the vendors will be made prior to obtaining good standing for the concessions”.
  • Capitan Mining Inc. executed an option agreement with Fresnillo PLC to acquire 100% interest in mineral rights to a key property at the Cruz de Plata project in Durango. The high-grade silver trend owned by Capitan is now 2.5 km in length, including extensions and targets on the Jesus Maria, San Rafael, El Tubo, El Refugio and Teresa veins. The optioned land holds 2,000 m of historic drilling in five holes with highlighted core length intervals of 1.0 m @ 233 gpt Ag, 0.1%Pb; 5.2 m @ 185 gpt Ag, 0.29 gpt Au, 0.90% Pb, 1.7% Zn; 29.0 m @ 55 gpt Ag, 0.14 gpt Au, 0.2% Pb, 0.6% Zn (including 1.3 m @ 284 gpt Ag, 0.43 gpt Au, 1.6% Pb, 5.5% Zn); 6.3 m @ 94 gpt Ag, 0.2% Pb, 0.4% Zn; 4.7 m @ 54 gpt Ag, 0.7% Pb, 1.2% Zn; 1.2 m @ 157 gpt Ag, 0.12 gpt Au, 1.1% Pb, 3.3% Zn. The deal involves a 3-year exploration agreement for the “Casco U” mining concessions, for a total of US$1.0 M over the period and 1% NSR which can be bought for US$1 M.
  • Golden Tag Resources Ltd. entered into a definitive agreement with First Majestic Silver Corp. to acquire 100% interest on La Parrilla project in Durango. The property covers 69,478 hectares, with five underground mines, an open pit and a processing plant comprising parallel 1,000 tpd flotation and 1,000 tpd cyanidation leach circuits where oxide and sulfide ores can be processed. There are 9.5 M Oz AgEq in measured and indicated historical resources and 12.5 M Oz AgEq in inferred resources. In consideration for the purchase Golden Tag will issue First Majestic US$20 M in Golden Tag shares, and US$2.7 M in the first 18 months, US$5.75 M (cash or shares) when either 5 M Oz AgEq of reserves or 22 M Oz AgEq of measured and indicated resources are declared. And US$5.05 M (cash or shares) when a new zone with a NI-43-101 report holding more than 12.5 M Oz AgEq is announced. After closing First Majestic will have the right to maintain its pro-rata interest in Golden Tag, up to 19.9% of shares.

ON SOCIAL RESPONSIBILITY

  • Hecla Mining Co. received the 2022 Environmental and Sustainability Excellence Award for its San Sebatian mine in Durango. The award by the American Exploration & Mining Association (AEMA) is in recognition by the company’s strong commitment to the highest environmental and sustainability standards.

On the image below puzzling boudin like siliceous bands in limestone on a project in the Sonoran Desert. Picture by Jorge Cirett.

The Mining and Exploration News in Mexico: Highlights on the Third Week of July, 2022

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By Jorge Cirett

During the 29th week of the year (July 18th to July 24th, 2022), at least 28 press releases were announced by companies working in Mexico. To note, three companies posted exploration advances on their properties and six presented production results for the second quarter. Remarkably six companies reported on the opening or closing of financing rounds for a total of US$24.4 M, and C$0.4 M, one on the opening of a distribution agreement for up to $100 M, one that began trading at the OTCQB and one other provided a by-weekly default status report. Three companies posted on work at its advanced properties and one reported on a possible closure if a labor strike continues.  ON MEXICO ISSUES, no relevant news. ON EXPLORATION, in Sonora, Aloro Mining reported on the resumed drilling at Los Venados. In Chihuahua, Radius Gold updated on work by Pan American Silver at its Amalia project. In Sinaloa, Prismo Metals selected a drill contractor for Palos Verdes. ON MINING, Americas Gold and Silver, Avino silver, Santacruz Silver Mining, First Majestic Silver, Excellon Resources and Great Panther Mining presented production results for the second quarter 2022; Empress Royalty received the first silver ounces from the Tahuehueto stream agreement. ON FINANCING, eight companies posted on financing rounds: Minera Alamos ($4.4 M), Starcore International ($1.2 M), Infinitum Copper ($1 M), Guanajuato Silver Company ($10.7 M), First Majestic Silver ($100 M), Fabled Silver (C$0.4 M), Ranchero Gold (5 M) and Prime Meridian Resources ($1.5 M). Benjamin Hill Mining is now trading on the OTCQB. Gatos Silver presented its by-weekly default report.  ON RESOURCES AND DEVELOPMENT, Prime Mining released drilling results form Los Reyes in Sinaloa. Pan American Silver released spectacular drill results from La Colorada Skarn project in Zacatecas. Tocvan Ventures presented metallurgical test results from Pilar, in Sonora. ON DEALS AND CORPORATE ISSUES, Korea Resources, through its Minera El Boleo subsidiary, is considering the closing of its El Boleo mine in Baja California Sur, as a labor strike continues. ON SOCIAL RESPONSIBILITY, Discovery Silver released its 2021 Environmental, Social and Governance report.

ON MEXICO ISSUES

  • No Relevant News.

ON EXPLORATION

  • Radius Gold Inc. updated on work by Pan American Silver at its Amalia project in Chihuahua. Three main targets have been drill-tested, for a total of 23,058 m in 67 drill holes. Highlighted results include 44 m @ 309 gpt Ag, 12.39 gpt Au at Amalia; 26.9 m @ 353 gpt Ag, 2.59 gpt Au at California; 61.2 m @ 232 gpt Ag, 0.65 gpt Au at El Cuervo. A new core length intercept at El Cuervo returned 4.35 m @ 401 gpt Ag, 0.79 gpt Au. Pan American has completed US$1.5 M option payments, enabling the company to earn an initial 65 % interest. “Pan American may earn an additional 10% by advancing the property to preliminary feasibility”.
  • Aloro Mining Corp. reported that Alamos Gold Inc. has resumed drilling exploration at the Los Venados project in Sonora. “Alamos’ current drill program is focusing on the high sulfidation gold mineralized area in the south, where gold mineralization was identified in Aloro’s initial drill program”. Alamos has the option to acquire a 70% interest on the property by incurring in US$5 M in exploration expenses, and certain cash payments over the course of three years.
  • Prismo Metals Inc. selected a drill contractor for the upcoming drilling campaign on its Palos Verdes property in Sinaloa.

ON MINING

  • Americas Gold and Silver Corp. reported production for the second quarter 2022, including figures from its Mexican operations. At Cosalá, in Sinaloa, 128 K Oz Ag, 3.9 M Lb Pb, 9.9 M Lb Zn were produced. The cash and cash equivalents balance at the end of the period was $8.8 M.
  • Avino Silver & Gold Mines Ltd. reported its second quarter 2022 production results. A t the Avino mine, in Durango, 118.2 K tonnes were milled @ 65 gpt Ag, 0.46 gpt Au, 0.69% Cu, recovering 91% Ag, 78% Au, 92% Cu, to produce 225.5 K Oz Ag, 1,350 Oz Au, 1.64 M Lb Cu.
  • Empress Royalty Corp. announced it has received the first silver ounces from the silver stream agreement on the Tahuehueto mine, in Durango, owned by Alta Ley Mining.
  • Santacruz Silver Mining Ltd. reported second quarter 2022 production results. At Zimapan, in Hidalgo, 200 K tonnes were milled @ 72 gpt Ag, 0.61% Pb, 2.05% Zn, 0.39% Cu, recovering 69% Ag, to produce 317.1 K Oz Ag, 1,043 tonnes Pb, 3,055 tonnes Zn, 568 tonnes Cu (914.5 K tonnes Oz AgEq).
  • First Majestic Silver Corp. announced production results for the second quarter 2022, including figures from its Mexican operations. Consolidated production on its three mines in Mexico, San Dimas in Durango, Santa Elena in Sonora and La Encantada in Coahuila, was 6.16 M Oz AgEq consisting of 2.75 M Oz Ag, 40,759 Oz Au. Silver recovery averaged 81% and gold recovery 93%. During the quarter 11 rigs were operating at San Dimas, six at Santa Elena and two at La Encantada.
  • Excellon Resources Inc. presented Q2 2022 production results from the Platosa mine in Durango. During the period 21.5 tonnes were mined, 23,550 tonnes milled, grading 449 gpt Ag, 4.19% Pb, 4.70% Zn, recovering 90.4% Ag, 75.5% Pb, 86.0% Zn, to produce 307.5 K Oz Ag, 1.64 M Lb Pb, 2.1 M Lb Zn. “As previously disclosed, the Company expects to wind down operations at Platosa during Q3 2022”.
  • Great Panther Mining Ltd. reported production results for the second quarter of 2022, including figures from its Mexican operations. At Topia, in Durango, 17.0 K tonnes were mined, 17.2 K tonnes milled, averaging 315 gpt Ag, 0.74 gpt Au, recovering 92% Ag, 64% Au, to produce 159.5 K Oz Ag, 260 Oz Au, 336 tonnes Pb, 480 tonnes Zn, or 266.9 K Oz AgEq. The Guanajuato Mine Complex is currently on care and maintenance. The company is in the process of divesting its Mexican properties.

ON FINANCING

  • Minera Alamos Inc. closed its non-brokered private placement for aggregate gross proceeds of $4.37 M. Minera Alamos intends to use the proceedings to advance the Cerro de Oro project in Zacatecas (Santana, Sonora).
  • Starcore International Mines Ltd. closed its non-brokered private placement, raising $1.2 M in gross proceeds (San Martin mine, Queretaro).
  • Benjamin Hill Mining Corp. has began trading on the OTCQB (Sonora Gold, Sonora).
  • Infinitum Copper Corp. closed the previously announced non-brokered private placement financing, with oversubscribed gross proceeds of $1.04 M (La Adelita, Sonora).
  • Guanajuato Silver Company Ltd. closed its equity financing of subscription receipts totaling US$ 10.72 M. The funds are on escrow management until the announced acquisition of Great Panther mining assets (Topia, Guanajuato Complex) in Mexico. GSilver has also signed a concentrate pre-payment facility term sheet with Ocean Partners, to provide US$5 M on financing towards the purchase price (El Cubo, Guanajuato).
  • First Majestic Silver Corp. entered into an equity distribution agreement with BMO Capital Markets and TD Securities, pursuant to which the company may sell through these agents common shares of the company as would result in aggregate gross proceeds of US$100 M, until June 18, 2023 (San Dimas, Durango).
  • Fabled Silver Gold Corp. closed the first tranche of a non-brokered private placement for gross proceeds of C$415 K (Santa Maria, Chihuahua).
  • Ranchero Gold Corp. filed a preliminary short form prospectus in connection with a proposed marketed public offering of up to $5 M (Santa Daniela, Sonora).
  • Prime Meridian Resources Corp. announced a non-brokered private placement for gross proceeds of up to $1.5 M. (La Verde, Sonora).
  • Gatos Silver Inc. provided its by-weekly default status report as ordered. “The Company believes that it will be able to file its annual report on Form 10-K for the year ended December 31, 2021, and its quarterly report on Form 10-Q for the quarter ended March 31, 2022 in the second half of 2022” (Cerro Los Gatos , Chihuahua).

ON RESOURCES AND DEVELOPMENT

  • Prime Mining Corp. released results from step-out and infill drilling its Los Reyes project in Sinaloa. Highlighted true width (tw) core results at San Miguel East comprise 16.9 m @ 2.72 gpt Au, 130 gpt Ag; 2.6 m @ 1.24 gpt Au, 14 gpt Ag; 2.3 m @ 1.12 gpt Au; 6.1 m @ 4.86 gpt Au, 151 gpt Ag; 1.2 m @ 1.51 gpt Au; 2.6 m @ 1.88 gpt Au, 284 gpt Ag; 5.4 m @ 1.25 gpt Au, 67 gpt Ag. To date, Prime has drilled 83,235 m in 323 holes at Los Reyes. “Mineralization at San Miguel East consists primarily of white to grey crystalline to chalcedonic quartz, quartz breccia and stockwork exploiting 45-degree southwest dipping fault structures within or along the margins of rhyolite dykes that intrude both andesitic tuffs and rhyolite. Quartz is massive-to-crustiform, locally displaying colliform to bladed replacement textures”.
  • Pan American Silver Corp. released results from 22 new infill and exploration drill holes totaling 18,071 m at its La Colorada Skarn project in Zacatecas. Highlighted (spectacular) core length results comprise 292.5 m @ 234 gpt Ag, 0.09% Cu, 6.4% Pb, 5.7% Zn (including 97 m @ 654 gpt Ag, 0.16% Cu, 15.3% Pb, 11.4% Zn); 188.5 m @ 59 gpt Ag, 3.1% Pb, 4.8% Zn; 40 m @ 99 gpt Ag, 3.6% Pb, 4.5% Zn; 117.65 m @ 35 gpt Ag, 2.7% Pb, 3.9% Zn; 69.10 m @ 48 gpt Ag, 3.8% Pb, 4.8% Zn; 188.7 m @ 68 gpt Ag, 0.11% Cu, 4.7% Pb, 6.2 % Zn; 160.9 m @ 82 gpt Ag, 0.16% Cu, 3.7% Pb, 6.3% Zn. These intercepts define a silver rich zone, mineralization widths of up to 90 m and maintain several directions open for growth.
  • Tocvan Ventures Corp. completed the latest drilling stage with 1,382 m in seven holes at its Pilar project in Sonora. Metallurgical column leach tests by a non-certified assayer returned gold recoveries above 85%; previous bottle roll studies by SGS had returned between 90.6% and 91.6% Au recoveries.

ON DEALS AND CORPORATE ISSUES

  • Korea Resources through its subsidiary Minera Boleo announced the commencement of proceedings for a closing of its El Boleo mine, in Baja California Sur. This a as a result of the strike by the local miner’s union.

ON SOCIAL RESPONSIBILITY

  • Discovery Silver Corp. released its 2021 Environmental, Social and Governance report. The report highlights $10.3 M in goods and services purchased to Mexican businesses, $4.9 M in salaries and benefits to local employees, and a total workforce of 154 that includes 67 employees and 87 contractors.

On the image below: All rocky outcrops in this picture are part of copper-gold bearing silicified structures on a project in the Sonoran Desert. Picture by Jorge Cirett.

The Mining and Exploration News in Mexico: Highlights on the Third Week of September, 2020

/ Gambusino Prospector / Leave a comment

By Jorge Cirett

During the 38th week of the year (September 14th to September 20th, 2020), at least 38 press releases were announced by companies working in Mexico. To note, six companies posted exploration advances on their projects, fourteen companies posted news related to financing or share structure, and six on their projects development. Companies that raised funds include Southern Silver, Oroco Resource, Comet Resources, Consolidated Zinc, First Majestic, Defiance Silver, Argonaut Gold, GoGold Resources and Silver Dollar Resources. ON MEXICO ISSUES, Fortuna Silver tries to avoid an illegal blockade from occurring at its San José mine in Oaxaca. Mexico loses positions in the 2019 Fraser Institute ranking on mining regions. Cancham points out the Mexican mining environment is facing multiple challenges. Guanajuato intends to form a Mining Cluster. Fernando Alanís, Camimmex president clearly explained how mining concessions function in Mexico. ON EXPLORATION, in Sonora, Minaurum started the second phase drilling program at its Alamos Silver project. In Sinaloa, Brigadier Gold released surface sampling results from its Picachos property. In Zacatecas, Minera Alamos released results from historical drill holes at Cerro de Oro; Alien Metals released underground and surface sampling results from San Celso and Los Campos; Advance Gold informed on the drilling (providing no results) at Tabasqueña. In Guanajuato, VanGold Mining updated on exploration/development at El Pinguico.  ON MINING, Mexus Gold is nearing the completion of a ball mill gravity gold recovery system at its Santa Elena mine in Sonora. Starcore International reported results for the last quarter. Excellon Resources provided production results for August 2020 from its Platosa mine in Durango. ON FINANCING, nine companies made announcements regarding the opening or closing of financing rounds: Southern Silver ($456 K), Oroco Resource ($7.26 M), Comet Resources (a streaming facility, up to $20 M), Consolidated Zinc (A$2 M), First Majestic (C$78 M), Defiance Silver (C$10 M), Argonaut Gold (C$10 M), GoGold Resources (C$30 M) and Silver Dollar Resources ($10.5 M). Silver Bull is going for a reverse stock split of 8 to 1. Canuc Resources and Solaris Resources are now trading at the OTCQB Venture Market. ON RESOURCES AND DEVELOPMENT, Discovery Metals released results from drilling at its Cordero project in Chihuahua. Almaden Minerals resumes exploration at its Ixtaca project in Puebla. GR Silver Mining released drilling results from its Plomosas project in Sinaloa. Magna Gold completed a pre-feasibility report on its San Francisco project in Sonora.  Excellon recommenced underground and surface drilling at its Platosa mine, Durango. SSR Mining is extending a decline to drill, from the underground, high-grade portions of the mineral resource at Pitarrilla, Durango. ON DEALS AND CORPORATE ISSUES, Sonora Metals is changing name to Sonoro Gold. Barksdale Resources informed on title issues that have promoted some changes on how the deal is structured with Tusk Resources on the San Javier project in Sonora. Southern Silver informed it has closed the transaction to acquire Electrum’s 60% interest on Cerro Las Mintas project, Durango. Odyssey Marine Exploration filed the First Memorial on a case against Mexico, related to the lack of issuance of an environmental permit to mine a large off-shore phosphate resource. Excellon Resources informed on the results of litigation relating to a land surface purchase near its Platosa mine in Durango. ON SOCIAL RESPONSIBILITY. Fresnillo PLC, Fortuna Silver and Frisco informed on sustainability, health, safety, environment, social and governance programs.

ON MEXICO ISSUES

  • Compañía Minera Cuzcatlán (Fortuna Mines), called for the civil organizations promoting an illegal blockage of the San José mine in Oaxaca to reconsider its program. The blockage is being called to pressure the authorities on the delivery of resources, an issue completely unrelated to the mining company.
  • In 2019 Mexico fell nine positions, according to the Fraser’s Institute. Mexico’s shine to attract mining investment is getting dull with the lack of confidence and certitude derived of the president’s declarations on the review of mining concessions and the recent disappearance of the Mining Sub Secretary. The federal government has been clear, under his tenure no mining concessions are to be issued. The president has stated that up to 40% of the country ground has been under mining concessions, and that amount should suffice (for mining companies) for thousands of years.
  • Armando Ortega, president of the Mining Task Force of the Cámara de Comercio de Canadá en México (Cancham) stated that the mining environment in Mexico is not propitious because political signals of ideological nature are not favorable to investment, and some measures announced by the government are worrisome. Among the factors supporting its points are: initiatives to forbid open pit mining; initiatives to enlarge natural protected areas, encroaching to areas of active mining; the initiative to change the law on water use, changing its regime from concession to license; the stated fact by the president to not to grant a single mining concession during his tenure; the disappearance of the Mining Sub Secretary; the extortion by unions to companies, exemplified by the tricky wining by Napoleón Gómez Urrutia of the collective contract at is Cosalá mine complex in Sinaloa.  
  • According to a Camimex post, projects that are coming into production include an expansion at Los Filos, Guerrero (Equinox Gold); Ixtaca, Puebla (Almaden Minerals); Camino Rojo, Zacatecas (Orla Mining); Las Chispas, Sonora (SilverCrest Metals); Santana in Sonora, La Fortuna in Durango and Cerro de Oro in Zacatecas (Minera Alamos).  
  • Guanajuato announced its intention to conform a Mining Cluster.
  • Fernando Alanís, Camimex (Cámara Minera de México) president, explained some facts on how mining concessions function in Mexico. According to the constitution everything under the surface is property of the Nation, hence the permit needed to extract gas, oil, water or minerals by individuals or companies, permit that is precisely a concession. In mining the concession is a permit to explore and mine an ore deposit if found, it provides no rights for surface rights, reason for which an agreement has to be negotiated with the surface owner to access the land. He stressed that having a mining concession is no guarantee of finding an ore deposit. To keep a mining concession, the concessionaire has to pay every six months a due per hectare, due that increases with the age of the concession, to avoid speculative land grabs; and also the concessionaire has to comply with a minimum yearly investment that also increases with the age of the concession, again to avoid speculation. According to the DGM (Dirección General de Minas) 20.7 M hectares are concessioned in México, out of almost 200 M hectares in the country, meaning about 10.35% of the country is concessioned, of which only 1 M hectares include a project in exploitation. The government granting of mining concessions is the more efficient way to exploit the natural resources, letting others run the risks and expensive investments of exploration. The government receives the due payments, and in case of an ore body being found and a mine built, receive taxes for its operation. Mining is the economic activity that has the steepest rate of taxes and dues, which add up to 55% on the income of mining firms.

ON EXPLORATION

  • Brigadier Gold Ltd. released sampling results from two vein systems at its Picachos property in Sinaloa. Highlighted results comprise 7 m @ 160 gpt Ag, 0.6 gpt Au; 3 m @ 205 gpt Ag, 0.2 gpt Au; 0.5 m @ 356 gpt Ag, 6.6 gpt Au at the Garabato vein system, and 1.6 m @ 1.9 gpt Au, 98 gpt Ag, 0.6% Cu, 3.7% Pb, 1.5% Zn; 1.0 m @ 21.3 gpt Au, 5 gpt Ag, 3.2% Pb, 0.8% Zn; 0.2 m @ 56.7 gpt Au, 288 gpt Ag, 1.9% Cu, 5.9% Pb, 1.3% Zn at El Pino. The Garabato veins are coincident with a 20 ha soil anomaly that returned up to 36 ppm Ag, 366 ppm Cu, 1,049 ppm Pb, 1,184 ppm Zn. Three basins draining the El Pino vein system show stream sediment anomalies of up to 1.72 ppm Au, 0.9 ppm Ag, 597 ppm Pb and 329 ppm Zn.
  • Minaurum Gold Inc. announced the start of a 20,000 metre Phase II drilling program at its Alamos Silver project in Sonora. The program will commence with one rig offsetting an intercept of 8.25 m @ 1,760 gpt Ag on the Europa-Guadalupe veins, while a second rig will test targets at Promontorio, where recently acquired historical data revealed intercepts of up to 12.2 m @ 710 gpt Ag (Note.- Take a look to the press release, it is worth it).
  • Minera Alamos Inc. released additional historic drill data on the Cerro de Oro project in Zacatecas. The reverse circulation holes were drilled by a private operator in 2017-2018, to refine the previous drilling by Noranda in the 1990’s. Some of the highlighted results comprise 48 m 0.70 gpt Au; 112 m @ 0.42 gpt Au, 40 m @ 0.51 gpt Au; 64 m @ 0.38 gpt Au; 42 m @ 0.42 gpt Au; 100 m @ 0.42 gpt Au; 54 m @ 0.76 gpt Au; 102 m @ 0.38 gpt Au; 72 m @ 0.47 gpt Au; 56 m @ 0.47 gpt Au; 66 m @ 0.33 gpt Au;  96 m @ 1.10 gpt Au; 42 m @ 0.50 gpt Au.
  • Alien Metals Inc. informed on underground and surface sampling results from its San Celso and Los Campos projects in Zacatecas. At San Celso, underground sampling confirmed 2006 sample results, like 0.9 m @ 477 gpt Ag (0.5 m @ 422 gpt Ag on previous sample) and 1.4 m @ 225 gpt Ag (1.6 m @ 335 gpt Ag on previous sample). At Los Campos, dump sampling returned up to 0.3 gpt Au, 254 gpt Ag, 0.12% Pb, 0.07% Zn. The Nueva Andromeda claim, adjacent to San Celso, has been optioned.
  • VanGold Mining Corp. updated on exploration at its El Pinguico project in Guanajuato. Approximately 40 m have been sampled on a recently cleared section of the shaft, a 3D model is being generated, sampling for XRF sampling are being collected on #4 adit, and trenching of additional surface exposures and clearing of the #7 adit are being performed.
  • Advance Gold Corp. reported on the drilling done at its Tabasqueña project in Zacatecas. “Of the four holes drilled to date into the 3500-metre continuous IP chargeability anomaly, drill hole AGT-16 has encountered the best mineralization, including a 10.7 metre sulphide zone. Mineralization in this hole has zones of semi-massive pyrite, containing 15 to 30% pyrite, together with up to 3% sphalerite and some galena (core photos shown below and on company website). The first three holes intersected stacked lenses of disseminated sulphides and are around 3000 metres to the south of AGT-16”.

ON MINING

  • Mexus Gold US. is nearing the completion and test running of its high grade ball mill gravity gold recovery system at its Santa Elena mine in Sonora (not to mistake with First Majestic’s Santa Elena mine, also in Sonora). The company will mill material from a quartz vein with a 10 gpt Au cutoff, and recover the gold through the gravity system, while lower grade ore continues to be placed on the heap leach.
  • Starcore International Mines Ltd. Reported results of the first quarter ended July 31, 2020. Production during the period at its San Martin mine in Queretaro included the milling of 59.1 K tonnes @ 1.70 gpt Au, 29.2 gpt Ag, recovering 88.8% Au, 56.5% Ag, to produce 2.9 K Oz Au, 32.5 K Oz Ag.
  • Excellon Resources Inc. provided August 2020 production results from its Platosa mine in Durango. During the month 7.6 K tonnes were mined, 8.5 K tonnes processed @ 451 gpt Ag, 4.95% Pb, 6.76% Zn, recovering 86.8% Ag, 78.8% Pb, 78.9% Zn, to produce 106.7 K Oz Ag, 729.1 K Lb Pb, 997.2 K Lb Zn.

ON FINANCING

  • Silver Bull Resources. management approved a 1-for-8 reverse stock split of the of the company’s issued and outstanding common stock (Sierra Mojada, Coahuila).
  • Southern Silver Exploration Corp. closed the recently announced non-brokered private placement for gross proceeds of $456 K (Cerro Las Minitas, Durango).
  • Oroco Resource Corp. closed a non-brokered private placement for gross proceeds of $7.26 M (Santo Tomás, Sinaloa).
  • Canuc Resources Corp. announced it is now trading its shares on the OTCQB Venture Market (San Javier, Sonora).
  • Comet Resources Ltd. executed a binding agreement with Raptor Capital International Ltd. “for the provision of a streaming facility to provide a minimum of US$6m and up to US$20m in funding for development of the Santa Teresa High Grade Gold Project in Baja California”.
  • Southern Silver Exploration Corp. informed on private placements recently closed. A brokered offering for gross proceeds of C$10 M followed by a non-brokered offering for gross proceeds of C$4 M and a non-brokered private placement for gross proceeds of $456 K (Cerro Las Minitas, Durango).
  • Consolidated Zinc Ltd. Intends to undertake “a fully underwritten non-renounceable pro rata entitlement offer on the basis of three (3) new fully paid ordinary shares (“New Shares”) for every eleven (11) Shares held on 24 September 2020”. The intention is to raise approximately A$2 M (Plomosas, Chihuahua).
  • First Majestic Silver Corp. closed its previously announced bought deal with Eric Sprott for gross proceeds of CDN$78 M (Santa Elena, Sonora; San Dimas, Durango).
  • Solaris Resources Inc. announced its common shares have been approved to trade on the OTCQB Venture Market, effective September 17, 2020 (La Verde, Michoacan).
  • Defiance Silver Corp. closed the previously announced brokered private placement for gross proceeds totaling C$10 M (Veta Grande, Zacatecas).
  • Argonaut Gold Inc. entered into an agreement with a syndicate of underwriters with a bought deal private placement financing for aggregate gross proceeds of C$10 M (La Colorada, Sonora).
  • GoGold Resources Inc. closed its previously announced bought deal offering for gross proceeds of C$30 M (Los Ricos South, Los Ricos North, Jalisco).
  • Silver Dollar Resources Inc. completed its previously announced non-brokered private placement to raise $10.5 M in gross proceeds (La Joya, Durango).
  • Silver Viper Minerals Corp. announced that it has elected to accelerate the expiry date of the common share purchase warrants issued on September 24, 2019, to the new date of October 8, 2020 (La Virginia, Sonora).

ON RESOURCES AND DEVELOPMENT

  • Discovery Metals Corp. released results from four diamond drill holes targeting bulk-tonnage mineralization in the South Corridor at its Cordero project in Chihuahua. Highlighted intercepts comprise 401.7 m @ 49 gpt Ag, 0.07 gpt Au, 1.0% Pb, 1.1% Zn ( including 30.3 m @ 57 gpt Ag, 0.10 gpt Au, 0.8% Pb, 2.2% Zn; 112.3 m @ 96 gpt Ag, 0.08 gpt Au, 2.0% Pb, 1.8% Zn; 44.2 m @ 84 gpt Ag, 0.10 gpt Au, 1.8% Pb, 2.0% Zn); 5.1 m @ 231 gpt Ag, 0.21 gpt Au, 2.0% Pb, 2.6% Zn; 15.7 m @ 111 gpt Ag, 0.06 gpt Au, 1.7% Pb, 0.2% Zn.
  • Almaden Minerals Ltd. announced its intention to resume exploration in the area of the Ixtaca project in Puebla. “This program is starting with a desktop review of exploration data previously gathered, which is expected to lead to further field work in the near-term which may include mapping, surface sampling, geochemical stream silt and soil sampling, and geophysics. These data will be used to design a future drill program”.
  • GR Silver Mining Ltd. Released results from its surface core drilling program at Plomosas, Sinaloa. The drilling completed to date has delineated a 700 m mineralized zone with multiple veins including a low angle Pb-Zn-Ag rich hydrothermal breccia and high angle low sulfidation vein and stockwork systems. Highlighted true width intercepts comprise 6.0 m @ 85 gpt Ag, 0.4 gpt Ag, 1.1% Pb, 0.6% Zn (including 2.5 m @ 172 gpt Ag, 0.9 gpt Au, 2.7% Pb, 1.4% Zn); 22.3 m @ 48 gpt Ag, 0.1 gpt Au, 0.3% Pb, 0.6% Zn.
  • Magna Gold Corp. released the results of its recently completed pre-feasibility report on its San Francisco mine in Sonora. The report presents a base case at $1,450 per Oz Au with an NPV (Net present Value) of $80 M at 5% discount rate, producing 69 K Oz Au per year from 2021 to 2027 at an average all-in sustaining cost cash cost of $1,204 per Au Oz and no major capital required for resuming mining. Mineral reserves stand at 47.6 M tonnes @ 0.495 gpt Au, containing 758 K Oz Au and mineral resources (including mineral reserves) comprise 99.7 M tonnes @ 0.446 gpt Au, containing 1.43 M Oz Au. The inferred resources category includes 11.4 M tonnes @ 0.467 gpt Au, containing 171 K Oz Au.
  • Excellon Resources Inc. “has recommenced underground and surface drilling at the Platosa Mine and broader Platosa Property, respectively. Underground exploration is focused on expanding and further defining known mineralization. Surface exploration is focused on near mine targets around the Platosa deposit and the Jaboncillo and PDN targets north of the mine. Jaboncillo, 11 kilometres northwest of the Platosa Mine, is a Platosa-style target with a 4 x 4 kilometre alteration footprint, multiple times the size of the Platosa footprint, where the Company intersected near-surface gossans in 2019 drilling. PDN, two kilometres north of the Platosa Mine, is a skarn-style geophysical target that may be associated with the skarn discovery made in 2012 at Rincón del Caído”.
  • SSR Mining Inc. informed it is planning to spend $5 M in 2020 at Pitarrilla, Durango. The investment is part of a “program to extend an existing decline to provide drill access to the underground Mineral Resources. An improved geological model from work completed in 2019 indicates strong potential to better define known, high-grade mineralized veining associated with steeply dipping rhyolite dyke contacts. Extending the underground ramp provides access for tighter spaced drilling at better orientations to test the rhyolite dykes and veins for continuity. If infill drilling confirms the continuity of high-grade mineralized structures, there would be potential to enhance the grades of existing Mineral Resources“.

ON DEALS AND CORPORATE ISSUES

  • Sonoro Metals Corp. changes name to Sonoro Gold Corp. on September 9, 2020 (Cerro Caliche, Sonora).   
  • Barksdale Resources Corp. informed that “Following a detailed due diligence campaign, the Company identified certain title issues with respect to three of the twelve mining concessions comprising approximately 307.46 hectares of the total lands covered under the option. Tusk Exploration Ltd (“Tusk”) is in the process of rectifying these title issues and expects the process to be completed in 2021. Until the title issues have been rectified, Barksdale and Tusk have agreed to defer 35% of the Year 1 and Year 2 option cash and share payments” (San Javier, Sonora).
  • Southern Silver Exploration Corp. closed the transaction with Electrum Global Holdings L.P. to acquire Electrum’s 60% indirect working interest in the Cerro Las Minitas project in Durango. Southern Silver must pay Electrum US$15 M in a combination of cash and common shares, of which US$5 M and 2.34 M shares and a credit of C$1.35 M deposit have been paid. Remaining are US$2 M and shares equal to US$2 M to be paid on March of 2021 and US$2 M and shares equal to US$2 M to be paid on September of 2021.
  • Odyssey Marine Exploration Inc. filed “the First Memorial in the case brought against Mexico under the North American Free Trade Agreement (NAFTA) on its behalf and on behalf of subsidiary Exploraciones Oceánicas (ExO), alleging that Mexico wrongfully denied environmental approval of the ExO Phosphate project in breach of NAFTA ….. Odyssey seeks damages of more than $2.3 billion including interest from April 2016 to the date of the First Memorial’s submission”.
  • Excellon Resources Inc. informed an appeal on the acquisition of 295 hectares north of the Platosa mine (in Durango) was denied by an appeals court in Mexico. “The Company does not consider the land material to its mining operation or exploration activities. The decision does not impact Excellon’s mineral rights and the Company does not expect it to have any impact on its operations”.

ON SOCIAL RESPONSIBILITY

  • Fortuna Silver Mines (San José mine in Oaxaca) has added a new sustainability section on its website, where the company´s sustainability approach is expressed, as well as its environmental, social, and governance (ESG) management and performance.
  • Great Panther Mining Ltd. announced the publication of its first sustainability report highlighting the progress, initiatives and commitments in the areas of health, safety, environmental, social, and governance management.
  • Fresnillo PLC, Minera San Xavier and Frisco informed on health and community programs on the areas of their respective projects.

Content like what you have just read can be seen at https://gambusinoprospector.com/ and at LinkedIn’s Mexico Mineral Exploration Group. On the image below: Opaline silica layer in the vadose zone of a low sulfidation system in Queretaro. Picture by Jorge Cirett.

The Mining and Exploration News in Mexico: Highlights on the First Week of September, 2020

/ Gambusino Prospector / Leave a comment

By Jorge Cirett

During the 36th week of the year (August 31st to September 6th, 2020), at least 22 press releases were announced by companies working in Mexico. The dominant news on the country relating to the mining industry during the week, was the cancellation of the Sub Secretary of Mining (created during the last presidential term), headed by Francisco Quiroga, who had gained the trust of the enterprises and organizations of the industry by his relentless and hands-on daily effort to help better the mining industry in Mexico. He will be missed, unlike his predecessor. ON MEXICO ISSUES, the Sub Secretary of Mining was cancelled, its role absorbed within the Economy Secretary; loud complaints from the mining industry organizations followed, to fall on deaf ears. Pending investments in mining for the near future of US$1991 M. The Sonora Mining Fund Committee approved the investment of US$3.5 M on an aqueduct. FIFOMI has US$164 M in current credits to the mining industry. The Mining Fund is gone, for the purposes it was created for. (This is a measure taken by the actual federal government against the opinion of all mining enterprises and organizations. In my personal point of view, it opens the way to the use of the funds in a very centralized manner, same that can be exploited for political gains by those in power. There was just no need for this change). The very Mexican “illegal mine blockade roulette” now struck Equinox’s Los Filos mine in Guerrero. ON EXPLORATION, in Baja, Comet Resources updated on its Santa Teresa property. In Sonora, Redstar Gold updated on its Cumaro project. In Sinaloa, Viszla Resources released drilling results at Panuco. In Veracruz, Azucar Minerals released drilling results from El Cobre.  ON MINING, Santacruz Silver reported second quarter 2020 results. Equinox Gold’s Los Filos mine in Guerrero is affected by an illegal blockade. ON FINANCING, seven companies made announcements regarding the opening or closing of financing rounds: Southern Silver Exploration ($456 K), Barksdale Resources ($6.3 M), GoGold Resources (C$30 M), Silver Dollar Resources ($10.5 M), Inomin Mines ($400 K), Americas Gold and Silver (C$39.4 M), Alien Metals (£1.25 M). Gold79 Mines, Golden Tag Resources and Redstar Gold granted stock options to officers, directors and consultants. ON RESOURCES AND DEVELOPMENT, Silver Bull Resources updated on the legal battle and an illegal blockade at its Sierra Mojada project in Coahuila. ON DEALS AND CORPORATE ISSUES, Odyssey Marine Exploration received funds for the legal battle to obtain the government permit to mine its Exploraciones Oceánicas phosphate project offshore Baja California Sur. Tarachi Gold acquired the Juliana group of properties, increasing the size of its Tarachi property to 3,708 hectares. Inomin Mines executed the agreement on the acquisition of the La Gitana and Peña Blanca properties in Oaxaca. ON SOCIAL RESPONSIBILITY. Peñasquito, First Majestic, Minera San Javier, Alamos Gold and SilverCrest informed on donations, community involvement and safety measures on the areas near their operations.

ON MEXICO ISSUES

  • Francisco Quiroga, in his last day as Sub-Secretary of Mining, called for the AIMMGM (Asociación de Ingenieros Mineros, Metalurgistas y Geólogos de México) to play a leading role in the transformation of the industry and its relationship with the public sector.
  • The AIMMGM installed the newly elected board for the 2020-2022 period.
  • The Secretaría de Economía announced the cancellation of the Mining Sub-Secretary, onward from September 1st, 2020.
  • The cancellation of the Mining Sub-Secretary by the federal government brought loud complaints from companies and organisms within the industry (not that these complaints are to be attended to). The Cámara Minera de México (CAMIMEX), the Asociación de Ingenieros Mineros, Metalurgistas y Geólogos de México (AIMMGM), the Mining Task Force of the Cámara de Comercio del Canadá en México, the Sonora, Chihuahua, Guerrero, Sinaloa and Zacatecas Mining clusters, the Colegio de Ingenieros de Minas, Metalurgistas y Geólogos de México (CIMMGM) and the organization Mujeres en la Minería (WIM Mexico) extended its congratulations to Francisco Quiroga, departing Mining Sub-Secretary and expressed the profound disagreement for the disappearance of the Sub Secretary of Mining.   
  • Camimex (Cámara Minera de México) informed Mexico has a list of projects that add up to $1,991 M dollars in programmed investment. Amongst these are the Campo Morado mine in Guerrero, La Yaqui Grande in Sonora, as well as the Orysivo project in Chihuahua, the Centauro Profundo project in Sonora and the Media Luna project in Guerrero. Mexico had a production peak of 123,364 kg of gold in 2015, same that has declined to 73,451 kg in 2019.
  • The Mining Fund Sonora Committee approved the investment of MX$75 M pesos (US$3.5 M) for the construction of the Macoyahui-Alamos aqueduct. The project includes 24.5 Km of PVC tubing and five pumping stations.
  • INEGI informed the mining activity is resuming after the COVID lockdown. Sulphur, iron,, lead, gold, copper, silver, fluorite are among the commodities that have seen their production significantly increased. In January 2020 the industry generated 381,456 direct jobs and more than 2 M indirect jobs, according to the IMSS.
  • Request for the Mining Sub Secretary to stay in Chihuahua by Omar Bazán, deputy, and the Chihuahua Mining Cluster.
  • The Fideicomiso de Fomento Minero (FIFOMI) has $3,530 M pesos (US$164 M) on current credits to the mining sector.
  • The Mining Fund is gone, for the purposes it was created for. Graciela Márquez, Economy Secretary confirmed the resources no longer are going to be distributed among mining municipalities, but through different agreements with government organisms and federal programs to help mining communities.
  • Graciela Márquez, Economy Secretary, stated the disappearance of the Mining Sub-Secretary is not to affect the mining industry as all relevant structures stay in place (We beg to disagree).

ON EXPLORATION

  • Radius Gold Inc. informed on exploration at its Amalia and Plata Verde projects in Chihuahua. At Amalia, “phase 4 drilling funded by JV partner Pan American Silver remains on stand-by due to COVID-19. Semarnat, the permitting agency in Chihuahua, has returned to work on a limited scale and Pan American has recently provided updated information requested by Semarnat”. At Plata Verde, there is advance in the signing of agreements to expand the property package. “The next phase of field work will consist of geophysical programs to identify feeder systems and expansions of the known mineralization under the thin (>100m) cover volcanics”.
  • Redstar Gold Corp. announced its Cumaro project in Sonora is adjacent to SilverCrest’s Picacho property. “Previous drilling on SilverCrest Metals’ Picacho vein, two kilometres north of the Cumaro property, returned intersections including 13.9 metres at 16.22 grams per tonne (g/t) gold and 33.9 g/t silver in hole PDD07-013, and 4.1 metres at 3.86 g/t gold and 35.0 g/t silver…” in other hole on the Dos Amigos vein. The company believes there is a down-thrown block on the eastern side of the property, where the extensions of the veins exposed on the western side could be present on a much shallower level.
  • Comet Resources Ltd. Informed in a corporate presentation on its Santa Teresa property in Baja California. Santa Teresa is a high-grade mesothermal lode gold deposit (ie.- orogenic gold) with an existing NI 43-101 inferred resource of 64 K Oz Au capped at 20 gpt Au, with a cutoff grade of 4 gpt Au and average grade of 8 gpt Au. Historical drilling has intersected quartz veins grading up to 958 gpt Au over 1 m, and multiple other drill results above 30 gpt Au. The deposit is open along strike and at depth.
  • Vizsla Resources Corp. announced a fourth new discovery at its Panuco project in Sinaloa. The first four drill holes at the Tajitos vein have been completed on the Cinco Señores vein corridor. Highlighted intercepts from the three first drill holes comprise 4.5 m @ 1,200 gpt Ag, 7.29 gpt Au (including 1.15 m @ 2,210 gpt Ag, 16.13 gpt Au); 1.15 m @ 812 gpt Ag, 4.59 gpt Au. ”The Tajitos vein zone is composed of a quartz breccia vein with an early white locally banded quartz supporting andesite lithic clasts, followed by a later white to greyish quartz supporting brecciated clasts of earlier white quartz veins. This zone was then cut by a later white to clear quartz vein with local dark bands or patches of fine-grained sulphides that is cutting a zone of quartz psuedomorphs after bladed calcite and pink rhodochrosite. The better grades are in the earlier breccias associated with dark bands or dark patches of very fine-grained disseminated sulphides. This vein zone is hosted in a package of andesite flows and tuffs”.
  • Azucar Minerals Ltd. released drilling results from its El Cobre project in Veracruz. The holes in the Primo target returned 23.75 m  @ 0.22 gpt Au, 0.08% Cu; 8.50 m @ 0.71 gpt Au, 0.24% Cu; 123.50 m @ 0.14 gpt Au, 0.14% Cu. Azucar is currently preparing its facilities  and implementing the health protocols required to enable a safe return to work.

ON MINING

  • Santacruz Silver Mining Ltd. Reported operating and financial results for the second quarter 2020. At Veta Grande in Zacatecas, 37.1 K tonnes were milled to produce 204.6 K Oz AgEq at cash cost $17.68 per Oz AgEq and an AISC of $19.70 per Oz AgEq. At Rosario in San Luis Potosi, 20.8 K tonnes were milled to produce 141.4 K Oz AgEq at cash cost $14.23 per Oz AgEq and an AISC of $15.59 per Oz AgEq.
  • Equinox Gold Corp. reports that “mining activities at its Los Filos mine in Mexico have been suspended since September 3, 2020 as the result of an illegal road blockade by members of the nearby Carrizalillo community. The individuals allege non-compliance with the community social collaboration agreement signed in 2019. The mine remains staffed with a reduced workforce to maintain appropriate safety, security and environmental systems. Equinox Gold is in active discussions with the Carrizalillo community leaders to resolve the issues”.

ON FINANCING

  • Gold79 Mines Ltd. Approved the granting of 6 M stock options to officers, directors and consultants of the company (Taviche, Oaxaca).
  • Southern Silver Exploration Corp. plans to conduct a non-brokered private placement to raise $456 K (Cerro Las Minitas, Durango).
  • Golden Tag Resources Ltd. Granted 9.9 M incentive stock options to management and directors (San Diego, Durango).
  • Barksdale Resources Corp. increased the size of its non-brokered private placement financing for gross proceeds of up to $6.3 M (San Javier, Sonora).
  • GoGold Resources Inc. entered into an agreement on a bought deal basis with a syndicate of underwriters for the acquisition of shares for gross proceeds of C$30 M (Los Ricos, Jalisco).
  • Silver Dollar Resources Inc. has arranged a non-brokered private placement to raise up to $10.5 M (La Joya, Durango).
  • Redstar Gold Corp. announced the granting of 20.73 M stock options to directors, officers and consultants of the company (Cumaro, Oso Negro and La Lola, Sonora).
  • Inomin Mines Inc. announced a non-brokered private placement to raise up to $400 K in gross profits (La Gitana, Oaxaca).
  • Americas Gold and Silver Corp. closed its previously announced and up-sized bought deal financing for aggregate gross proceeds of C$39.4 M (Cosalá, Sinaloa).
  • Alien Metals Ltd. announced that it has conditionally raised £1.25 M (Los Campos and Los Celsos, Zacatecas).

ON RESOURCES AND DEVELOPMENT

  • Silver Bull Resources Inc. updated on its Sierra Mojada project in Coahuila. Sociedad Cooperativa de Exploración Minera Mineros Norteños, S.C.L. (Mineros Norteños), the group which is illegally blocking the Sierra Mojada project, has filed an appeal in the recently reopened Mexican courts to try and overturn a favorable ruling for Silver Bull on their lawsuit against the Company filed in 2014. The company sees the whole lawsuit as frivolous (looking for payment of an NSR on production that has not taken place), and explains Mineros Norteños has lost already three rulings, and Silver Bull expects a final ruling on the case, which cannot be appealed by Mineros Norteños, to be handed down from the courts within the next 6 months. Mineros Norteños has illegally blocked access to the project since September 2019.

ON DEALS AND CORPORATE ISSUES

  • Odyssey Marine Exploration Inc. had a financing transaction that provides the company with $11.3 M, a portion of which will be used to fund operating expenses of the “Exploraciones Oceánicas” phosphate project offshore Baja California Sur. “The investor group was anchored by Odyssey’s existing NAFTA funding partner, Poplar Grove LLC. Poplar Grove is managed by Drumcliffe LLC, a private investment management firm that oversees high-value litigation funding portfolios of over $14 billion in claims”.   
  • Telson Mining Corp. announced the resignation from its board of directors by Remigio Martínez Muller.
  • Tarachi Gold Corp. entered into an arm’s length option agreement with Exploradora Cobre de Bacanoras S. de R.L. de C.V. to acquire 100% interest in the group of mining concessions known as the Juliana, Juliana No.1, Juliana No.2 and Las Morita mining concessions covering 1,140 hectares in Sonora. “Tarachi’s projects now consist of the San Javier, Pretoria, Chivitas, Jabali, Juliana, Texana and Tarachi concessions for a total of 3,708 ha in the Mulatos District. The deal involves the payment of $40 K on the execution date, $30 K on six months, $30 K on 12 months, $30 K on 18 months, $60 K on 24 months, $60 K on 30 months, $150 K on 36 months, $150 K on 42 months, $150 K on 48 months, $700 K on 54 months and $700 K on 60 months, and the issue of 4 M common shares, 400 K of those on the execution date, 1 M shares on 12 months, 1 M shares on 24 months and 1.5 M shares on 26 months. The transfer of the concessions is subject to a 3% NSR from production, with the company having the right to buy at any time 1/3 of the NSR for $1 M.
  • Inomin Mines Inc. announced the execution of the agreement to acquire the La Gitana and Peña Blanca projects in Oaxaca. Inomin is acquiring 100% interest on both properties for 1 M common shares of Inomin, $25 K cash and the grant of 1.5 % NSR on the Peña Blanca property, of which 0.5% can be bought at any time for $1 M.

ON SOCIAL RESPONSIBILITY

  • Peñasquito continues to apply bio-security protocols. Up to date 27,359 fast test have been applied in the facilities and neighboring communities, resulting in six confirmed cases.
  • First Majestic Silver Corp. invested during 2019 US$3.8 M in local community, health youth programs, infrastructure and access to clean water. Over 25,600 medical consultations were provided in local communities. Planted 105,730 native plant species through reforestation initiatives .
  • Minera San Javier (NewGold) donated personal medical equipment to hospitals in San Luis Potosí, and personal medical equipment and sanitization supplies to the Cerro San Pedro municipality health clinics. The company continues to deliver food pantries to persons in need in Planta del Carmen, La Zapatilla, Monte Caldera, Cuesta de Campa, Calderón, Portezuelo and Cerro San Pedro.
  • Alamos Gold donated medical equipment and a mobile unit to the Sahuaripa DIF (Desarrollo Integral de la Familia) in Sonora.
  • SilverCrest’s Las Chispas project has accumulated 600 days without accidents in Sonora.

Content like what you have just read can be seen at https://gambusinoprospector.com/ and at LinkedIn’s Mexico Mineral Exploration Group.

On the image below: The whitish ledge from left to center is a silicified paleo water table in the Mexican Altiplano. Picture by Jorge Cirett.

The Mining and Exploration News in Mexico: Highlights on the Third Week of August, 2020

/ Gambusino Prospector / Leave a comment

By Jorge Cirett

During the 34th week of the year (August 17th to August 23rd, 2020), at least 36 press releases were announced by companies working in Mexico. To note, twelve of those were either opening or closing rounds of financing, several presenting oversubscriptions. Even with the difficulties to assign the total amount to any given week, the announcements on this period add up to $38.3 M and C$90.5 M, standing out Chesapeake’s $20 M and Americas Silver C$35 M. ON MEXICO ISSUES, the Guanajuato Mining Cluster is being consolidated; The MIA on Camino Rojo in Zacatecas has been approved; A new Mining Museum opens in Zimapan, Hidalgo; Francisco Quiroga, Mining Undersecretary stressed community acceptance is vital for mining companies; Minera Peñasquito and the Cedros Ejido have signed a new agreement; Foreign investment decreased during the first half of 2020; Neida Patricia Madrid, is the first large shovel female operator in Mexico; The Mexican mining industry lost 4 billion dollars in two months. ON EXPLORATION, in Sonora, Tarachi Gold released assay results from trenching at its Tarachi project. In Zacatecas, VanGold Mining accessed the #6 level on the Pinguico mine. Advance Gold is extending the IP survey at Tabasqueña. ON MINING, Odyssey Exploration continues to seek a favorable resolution on the litigation to obtain the development permit for its offshore Exploraciones Oceanica project in Baja California Sur. Americas Silver informed the illegal blockade at its Cosalá complex in Sinaloa was lifted, and the process for new union elections is coming. Mexus Gold is acquiring more heavy equipment for its Santa Elena mine in Sonora. Premier Gold informed of positive cash flow under its new reduced production plan at Mercedes, in Sonora. ON FINANCING, twelve companies made announcements regarding the opening or closing of financing rounds: Golden Tag ($7 M), VanGold Mining ($3.97 M), Southern Silver Exploration (C$14 M), Sable Resources (C$9 M), Tarachi Gold (C$9.49 M), Minera Alamos (C$13 M), Defiance Silver (C$7 M), Americas Silver (C$35 M), Chesapeake Gold ($20 M), Orex Minerals ($5.5 M), Monarca Minerals (C$3 M), Silver Spruce ($1.8 M). ON RESOURCES AND DEVELOPMENT, Azure Minerals has sent samples for metallurgical studies from the Mesa de Plata deposit at its El Alacrán project in Sonora. Prime Mining released trench results from Los Reyes, in Sinaloa. Discovery Metals released drilling results from high-grade veins from its Cordero deposit in Chihuahua. Aura Minerals updated on exploration efforts at its Aranzazu project in Zacatecas. GoGold Resources released results from six more holes at Los Ricos North, in Jalisco. ON DEALS AND CORPORATE ISSUES, Southern Silver entered into a definitive agreement with Electrum Global Holdings to acquire Electrum’s interest in the Cerro Las Minitas project in Durango. Evrim Resources and Renaissance Gold completed its merger and name change to Orogen Royalties. Sun River Gold has increased its ownership in an additional 5% NPI of the mine tailings project at El Oro, Estado de Mexico. VanGold Mining signed an agreement to re-purchase the underlying royalties on its El Pinguico project in Guanajuato. Zanzibar Gold appointed Sergio Trelles as special advisor to the board. Megastar Development amended the option agreement to extend the dates for expenditures at the Rama de Oro, Yautepec and Magdalena projects in Oaxaca. ON SOCIAL RESPONSIBILITY. Grupo Mexico, Fresnillo PLC, Peñoles, Minera Media Luna and Minera Fresnillo informed on donations and community involvement measures on the areas near their operations.

ON MEXICO ISSUES

  • The Guanajuato Mining Cluster is being consolidated. The move seeks to develop local industries as service providers for the mining industry.
  • SEMARNAT (the Mexican environmental agency) approved the Environmental Impact Report (MIA) of Orla Mining to develop the Camino Rojo Oxide project in Zacatecas.
  • The Mining Museum has been inaugurated in Zimapan, Hidalgo.
  • Francisco Quiroga, sub secretary of Mining, in the Camimex organized “Mining in the New Normality” forum, stressed that the main challenge for mining companies is to work on its acceptance by communities.
  • Minera Newmont announced the signing of the agreement between the company and the Cedros Ejido in Peñasquito, Zacatecas. To work free of illegal blockades, the company is to solve the damage to the El Socavon spring, build infrastructure to promote physical activities, develop a social area, build a civic plaza and revise the temporal occupation agreements of the mining unit at Cedros. To reach this accord 60 workshops were held with the mediation of the governor Alejandro Tello, Francisco Quiroga (Mining sub secretary) and the Secretary of the Interior Olga Sanchez.
  • The foreign direct investment in Mexico decreased during the first half of 2020 in sectors like mining, electricity and tourism. The economic crisis has coupled with changes in the regulation of the electricity generation market and the cancellation of already permitted developments like the investment by Constellation Brands and its Brewery in Baja California, to reduce the attraction to invest in the country.
  • First woman to be operator of a mechanical shovel in Mexico, Neida Patricia Madrid, Minera Buenavista del Cobre employee is the first woman to operate this 22 m high, 12 m wide machine used to load ore into off-road dump trucks. Born in Cananea, Sonora, Neida Patricia was selected for training after working for several years as dump truck operator.
  • The Mexican mining industry lost 4 billion dollars in two months, according to Francisco Quiroga, Mining Sub-secretary. Even so, he pointed that the industry has benefited of a 17% depreciation of the Mexican peso, and the rise on the price of metals, like silver in 58%, gold in 28%, and copper in 41%. Silver production was expected to reach 324 M Oz, but after the Coronavirus emergency lockdown, the outlook has been reduced to 270 million ounces, although with a much better price.  

ON EXPLORATION

  • VanGold Mining Corp. informed the continuation of its summer program at El Pinguico project in Zacatecas. Rehabilitation work has now safely accessed the #6 level, which is believed to have been inaccessible since 1913. Work is underway to access also the #5 and #7 levels. Sampling of the bottom of the backfill on the #7 level is expected to be possible.
  • Advance Gold Corp. informed four additional lines of induced polarization are being surveyed to increase detail on an anomaly at its Tabasqueña project in Zacatecas. Drilling continues, with samples to be sent to the lab once the current hole being drilled is completed.
  • Tarachi Gold Corp. released high-grade results from channel sampling at La Dura historic underground mine on the Jabalí concession pf the Tarachi project in Sonora. Rock-saw samples returned 62.55 m @ 6.34 gpt Au (including 2.0 m @ 42.65 gpt Au); 9.4 m @ 0.63 gpt Au; 4.35 m @ 4.42 gpt Au; 6.25 m @ 1.13 gpt Au.   

ON MINING

  • Odyssey Marine Exploration Inc. reported results for the second quarter 2020. During the period, the focus has been seeking the advance of its offshore “Exploraciones Oceanicas” phosphate project in Baja California Sur. “Odyssey’s legal teams are working two separate, but concurrent processes, while Odyssey continues to work through diplomatic channels in attempts to reach a mutually beneficial agreement with Mexico .…… While we are hopeful an agreement will be reached, we must continue to pursue our North American Free Trade Agreement (NAFTA) claim against Mexico to protect our shareholders’ rights”.
  • Americas Gold and Silver Corp. reported consolidated financial and operational results for the second quarter of 2020. The illegal blockade that had been in place at the Cosalá operations in Sinaloa since the end of January 2020 “has been resolved favourably without negotiation or compromise with those responsible for the illegal action…. The Company has worked with government authorities to secure a democratic election to ratify a legitimate union to represent its workers which is now set for September 9, 2020”. The company finished the earn-in agreement for the San Felipe project (Sonora) with Hochschild, by providing notice and agreeing to pay the remaining $3.75 M plus VAT in common shares.
  • Mexus Gold US. Informs on the acquisition of more mining equipment for its Santa Elena mine in Sonora, The company aims to increase its mine output to 500 tonnes per day to the leach pad.
  • Premier Gold Mines Ltd. Informed the Mercedes mine in Sonora is generating positive cash flow under its revised production plan. “Following a two-month suspension of operations due to the COVID-19 pandemic, mine operations resumed under a new simplified production plan developed by the Mercedes team….. Ongoing exploration at Mercedes has returned positive results and is prioritized on extending mine life through the growth of reserves in proximity to existing mine workings and the delineation of future resources at the San Martin and Marianas zones. Results to-date have been positive”.

ON FINANCING

  • Golden Tag Resources Ltd. closed its non-brokered private placement for total gross proceeds of $7.0 M. Eric Sprott participated with the acquisition of 10.7 M shares. A commission fee of C$345.7 K was paid to Red Cloud Securities Inc., PI Financial Corp., PowerOne Capital Markets Limited, Canaccord Genuity Corp. y Haywood Securities Inc. (San Diego-Velardeña, Durango).
  • VanGold Mining Ltd. closed the final second tranche of its non-brokered private placement for gross proceeds of $278.6 K, adding up to total gross proceeds of $3.97 M (El Pinguico, Zacatecas).
  • Southern Silver Exploration Corp. has closed a brokered placement for C$10 M and a non-brokered placement for gross proceeds of C$4 M. The company paid fees to agents of $312 K, 1.56 M compensation options, a corporate finance fee of $237.9 K and 1.19 M corporate finance options.
  • Sable Resources Ltd. increased the size of its private placement to up to C$9 M (Margarita and Vinata, Chihuahua).
  • Tarachi Gold Corp. closed its non-brokered private placement, which was oversubscribed, for gross proceeds of CAD$9.49 M (Tarachi Gold, Sonora).
  • Minera Alamos Inc. entered into an agreement with National Bank Financial Inc. on a bought deal private placement for gross proceeds of approximately C$10 M. Later on the week Minera Alamos produced another press release where the private placement was increased to C$13 M (Santana, Sonora).
  • Defiance Silver Corp. entered into an agreement with Red Cloud Securities Inc. for a private placement to raise up to C$7 M (San Acacio, Zacatecas).  
  • Americas Silver and Gold Corp. announced it is increasing the size of its previously announced offering from C$25 M to C$35 M in gross proceeds (Cosalá, Sinaloa).
  • Chesapeake Gold Corp. closed its previously announced non-brokered private placement for gross proceeds of $20 M. Eric Sprott acquired $12.5 M in shares, same that coupled with prior shares in his possession amount to 15.5% of the issued and outstanding shares of Chesapeake.  “The net proceeds from the Private Placement will be used to undertake Metates metallurgical test work and ongoing regional exploration and for general working capital” (Metates, Durango).
  • Orex Minerals Inc. closed its previously announced non-brokered private placement to Eric Sprott, for gross proceeds of $5.5 M. The investment by Eric Sprott represents 19.6% ownership in non-diluted basis, and 26.8% on partially diluted basis (Sandra, Durango).
  • Monarca Minerals Inc. announced the closing of the previously announced non-brokered private placement, for gross proceeds of C$3 M. Aggregate fees of C$212 K were paid, and 4.24 M of finders warrants issued (Tejamen, Durango).
  •  Silver Spruce Resources Inc. increased and closed its previously announced private placement, for gross proceeds of $1.8 M. Finders fees of $138.3 K and 165 K broker warrants were paid (Mezquite, Sonora).

ON RESOURCES AND DEVELOPMENT

  • Azure Minerals Ltd. has sent samples from its Mesa de Plata deposit at its Alacrán project (Sonora) for advanced metallurgic testwork. Previous metallurgic studies highlighted the presence of romeite, a silver-rich mineral that neither floats nor leaches, and subsequent studies point to that mineral being amenable to recovery by gravity separation methods. Three reverse circulation holes were drilled specifically to collect high-grade samples containing silver-rich romeite, which intercepted 10.5 m @ 805 gpt Ag (including 6 m @ 1,284 gpt Ag); 15.0 m @ 677 gpt Ag (including 3.0 m @ 1,832 gpt Ag); 10.5 m @ 774 gpt Ag. “If processing by a combination of gravity separation, flotation and leaching is successful, the Company is aiming for total silver recoveries of ~90%”.
  • Prime Mining Corp. reported results of ongoing surface sampling on the Los Reyes project, Sinaloa. One trench returned 42.0 m  (18.0 m estimated true width, or TW) @ 1.93 gpt Au, 26 gpt Ag, including 4.0 m TW @ 7.46 gpt Au, 98 gpt Ag; Other trenches returned: 16.5 m @ 1.28 gpt Au, 103 gpt Ag; 16.5 m @ 0.89 gpt Au, 14 gpt Ag; 42.0 m @ 0.85 gpt Au, 20 gpt Ag; 52.5 m @ 0.9 gpt Au, 13 gpt Ag; 33.0 m @ 1.0 gpt Au, 20 gpt Ag; 10.5 m @ 2.01 gpt Au, 7 gpt Ag.
  • Discovery Metals Corp. released results from four diamond drill holes targeting “extensive” veins at its Cordero project in Chihuahua. These holes are part of a 55,000 m program that commenced on September 2019, of which 22,600 m have been completed in 62 holes. Highlighted intercepts comprise: 4.7 m @ 635 gpt Ag, 0.15 gpt Au, 12.3% Pb, 5.3% Zn (including 1.9 m @ 1,035 gpt Ag, 0.06 gpt Au, 20.0% Pb, 6.4% Zn); 5.6 m @ 135 gpt Ag, 0.18 gpt Au, 2.7% Pb, 1.6% Zn); 1.3 m @ 587 gpt Ag, 0.67 gpt Au, 9.4% Pb, 2.4% Zn; 2.0 m @ 846 gpt Ag, 0.33 gpt Au, 2.6% Pb, 0.1% Zn; 0.7 m @ 433 gpt Ag, 0.12 gpt Au, 1.4% Pb, 7.1% Zn. Four rigs are currently operating at the site.
  • Aura Minerals Inc. provided an update of exploration at its Aranzazu mine in Zacatecas. “The deposit at Aranzazu consists of a tertiary age Gold-Copper-Silver skarn type mineralization subdivided in three main zones, Mexicana, Glory Hole and Cabrestante, striking 1.2 kilometers along a structure….”. During 2020 the company intends to perform infill drilling in the Glory Hole zone, an extension drill program at the Glory hole and Cabestrante zones and important exploration effort mainly in El Cobre skarn target 3 km NW form the Aranzazu mine. Highlighted TW drill intercept results comprise: 11.37 m @ 0.90 gpt Au, 0.88% Cu, 14 gpt Ag; 43.02 m @ 3.68 gpt Au, 6.46% Cu, 95 gpt Ag; 24.01 m @ 4.88 gpt Au, 8.6% Cu, 127 gpt Ag; 26.79 m @ 1.20 gpt Au, 2.09% Cu, 22 gpt Ag; 10.72 m @ 1.78 gpt Au, 1.12% Cu, 16 gpt Ag, 6.0 m @ 0.93 gpt Au, 1.70% Cu, 17 gpt Ag; 2.0 m @ 2.21 gpt Au, 2.94% Cu, 36 gpt Ag.
  • GoGold Resources Inc. released assay results from six more drill holes at La Trini deposit on its Los Ricos North project in Jalisco. Highlighted core-length intercepts comprise: 29.4 m @ 1.77 gpt Au, 122 gpt Ag (including 8.8 m @ 5.11 gpt Au, 286 gpt Ag); 28.4 m @ 1.07 gpt Au, 103 gpt Ag; 20.7 m @ 0.16 gpt Au, 58 gpt Ag; 25.2 m @ 0.25 gpt Au, 94 gpt Ag; 19.0 m @ 0.1 gpt Au, 31 gpt Ag; 32.2 m @ 0.62 gpt Au, 79 gpt Ag; 15.7 m @ 0.38 gpt Au, 85 gpt Ag.

ON DEALS AND CORPORATE ISSUES

  • Southern Silver Exploration Corp. has entered into a definitive agreement with Electrum Global Holdings L.P. to acquire Electrum’s 60% interest in the Cerro Las Minitas project in Durango for current and future payments totaling US$15 M. On the closing of the date of the transaction the company has to pay US$5 M and issue US$2 M in shares.  
  • Evrim Resources Corp. and Renaissance Gold Inc. announced the completion of its merger, and the concurrent name change to Orogen Royalties Inc. “Underpinning Orogen’s strategic royalty focus are two organically created cornerstone assets: (i) a 2% net smelter return royalty (“NSR”) on the Ermitaño West gold-silver deposit in Sonora, Mexico, where production by First Majestic Silver Corp. is slated to begin in 2021(1); and (ii) a 1% NSR on the Silicon gold project in Nevada, U.S.A., which is being advanced by AngloGold Ashanti S.A.”.
  • Candente Gold Corp. announced that Sun River Gold has made the final payment of US$111 K to increase their ownership in an additional 5% NPI (Net Profit Interest) of the Mine Tailings at El Oro, Estado de México. “Sun River has the option to acquire 100% of the Tailings Project by making staged payments totalling US$300,000 (paid), bring the tailings into commercial production by October 31, 2021, and grant to the Company a 10% NPI, Life of Mine royalty (the “Candente Royalty”) as well as the Municipality’s 8% NPI on production from the properties. Sun River had the right to reduce the NPI payable to the Company to 5% by paying an additional US$200,000 in payments (now paid)”.
  • VanGold Mining Corp. signed an option agreement to re-purchase three underlying royalties on its El Pinguico project in Guanajuato. The company will pay C$1.68 M (C$5 K paid) and issue 3.75 M units of VanGold to Exploraciones Mineras del Bajio, S.A. de C.V.. The royalties to be scraped are: 1) a 4% NSR on all broken material, 2) a 3% NSR on all in-situ newly discovered material and 3) a 5% NPI on all in-situ newly discovered material. “Upon exercise of the Option, VanGold’s Mexican subsidiary, Obras Mineras El Pinguico, S.A de C.V., will own its undivided 100% interest in the El Pinguico silver and gold project free from royalties, save for a 15% net profits royalty in favour of EMBSA solely on the existing above ground and underground stockpiles of mineralized material. There will be no other royalties, net smelter returns or otherwise, on the El Pinguico project including the existing stockpiled material”.
  • Zanzibar Gold Inc. announced the appointment of geologist Sergio A. Trelles Monge as a special advisor to the board of the company. “Mr. Trelles was the Director General of Mining Promotion of the State of Sonora, Assistant Director of Mining Resources of Mexico’s Geological Survey. He was also President of the Association of Mining Engineers, Metallurgists and Geologists of Mexico, Civil Association [Asociación de Ingenieros de Minas, Metalurgistas, y Geólogos de México A.C]. and Chairman of the College of Mining Engineers, Metallurgists and Geologists of Mexico, Civil Association [Colegio de Ingenieros de Minas, Metalurgistas y Geólogos de México A.C].”.
  • Megastar Development Corp. has amended the option agreements to acquire 100% interest in the Rama de Oro, Magdalena and Yautepec projects in Oaxaca, by extending the due dates for the exploration expenditures on each project. “The Rama de Oro expenditure commitment of US $350,000 was extended from May 9, 2020 to May 9, 2022 and the Magdalena and Yautepec expenditure commitments, in the aggregate amount of US $310,000, were extended from June 1, 2021 to December 1, 2021. In consideration of the extension, the Company has agreed to pay an aggregate US $12,500 to the vendor, who is a director of the Company”.  

ON SOCIAL RESPONSIBILITY

  • Grupo Mexico donated eight thousand tree seedlings to the Salamanca Municipality in Guanajuato.
  • Fresnillo PLC, through Minera Penmont and Innovec, has been sponsoring online workshops for kids in 22 communities of Caborca, Sonora.
  • Minera Penmont distributed 4,000 washable face masks in 22 communities of the Caborca municipality, and expects to deliver another 6,000 before the end of the week.
  • Peñoles has more than 1,500 local service providers in the La Laguna region (Torreón-Gómez Palacio-Lerdo). The company has 3,500 workers and generates another 2,000 full time jobs. No one was fired during the pandemic emergency, while 450 vulnerable employees were been sent home with full pay and are now in the process of returning to work following government directives.
  • Minera Media Luna built an artificial swamp for treatment of residual waters in Cocula, Guerrero.
  • Minera Fresnillo and Concretos Lanzados de Los Mochis donate meals for community dinner rooms in Zacatecas.  

Content like what you have just read can be seen at https://gambusinoprospector.com/ and at LinkedIn’s Mexico Mineral Exploration Group.

On the image below: Artisanal kaolin mine above a low sulfidation epithermal system in Guanajuato. Picture by Jorge Cirett.

The Mining and Exploration News in Mexico: Highlights on the First Week of April, 2020

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By Jorge Cirett

Amidst the Coronavirus widespread suspension of activities, including mining and exploration, decreed by the Mexican government, a record number of press releases was issued. During the 14th week of the year (March 30th to April 5th, 2020), at least 57 press releases were announced by companies working in Mexico, of which 20 were on how companies were dealing with the situation. ON MEXICO ISSUES, a national decree by the federal government suspended all non-essential activities, which include mining and exploration, until the end of April. The DGM (Mining Regulator) is to manage everything through electronic channels during the Coronavirus contingency (in practical terms, do not expect anything done during this period of time). Previous to the federal government decree, the Sonoran government ordered the stoppage of all work on the mines on the State. Mexico is well poised for a substantial growth in lead and zinc production in 2020 (although the work suspension on mines might prevent it).  ON EXPLORATION, in Sonora, Silver Viper released more drilling results on El Rubi zone of its La Virgina project. Tocvan Ventures commenced geophysical and soil survey programs at its Pilar project. In Chihuahua, Discovery Metals and Kootenay Silver announced the suspension of activities at its Cordero and Columba projects respectively. In Sinaloa, Kootenay Silver announced the suspension of activities at El Copalito. Advance Gold released drilling information on its Tabaqueña project.  ON MINING, Mag Silver, Excellon Resources and Odyssey Marine Exploration presented 2019 results. First Majestic plans to invest $46 M in capital expenditures at its Santa Elena project. GoGold completed the commissioning of a SART palnt at its Parral tailings facilities. Equinox plans to produce 170 K – 190 K Oz Au during 2020 at Los Filos, Guerrero, and invest a total of $75 M. ON FINANCING, Orla Mining closed a bought deal for C$75 M. Mithrill is to conduct a rights issue for share holders in Australia and New Zealand to raise $2.45 M. Southern Silver announced the exercise of 2015 and 2016 warrants and options, raising $1.25 M. ON RESOURCES AND DEVELOPMENT, First Majestic updated the mineral resource estimate on seven of its Mexican properties. Sierra Metals updated the mineral resource estimate on Bolivar, Chihuahua. Prime Mining produced a new resource estimate for its Los Reyes project in Sinaloa. Mag Silver has to obtain funding, or see its 44% JV participation in the Juanicipio project (Zacatecas) dwindle. Great Panther filed two technical reports on the Guanajuato mine complex. Bacanora Lithium granted a contract to GRES on the Sonora Lithium project. Golden Minerals presented a new PEA for its Velardeña properties. GR Silver Mining released underground channel results from the Plomosas project in in Sinaloa. ON DEALS AND CORPORATE ISSUES, GR Silver completed the acquisition of the Plomosas project in Sinaloa. Argonaut Gold and Alio Gold are merging. Orex Minerals and Pan American Silver are forming a JV on the Sandra project in Durango. Riverside is going ahead with the Peñoles project (Durango) spin-off. Mithrill Resources informed on the acquisition of Sun Minerals. Southern Silver entered into an agreement with Monarch Minerals to purchase a mineral concession adjacent to Cerro Las Minas project in Durango. Oroco Resources amended disclosures on the Santo Tomas project technical report. Odyssey Marine Exploration continues with the arbitration process for its offshore phosphate project in Baja California Sur. ON SOCIAL RESPONSIBILITY. Newmont GoldCorp Peñasquito donated 500 COVID-19 tests and delivered thousands of cleansing packages in the communities near the Peñasquito mine in Zacatecas..

ON MEXICO ISSUES

  • Mining halted in Mexico. A national decree by the Mexican federal government suspended all non-essential activities for 30 days on the wake of the fight on the propagation of the coronavirus. Mining is not considered essential thus all operations are due to shut down.
  • Mexico is well positioned for increased lead and zinc production, BNamericas. Supported by expected continued work at Newmont’s Peñasquito mine, Southern Copper’s San Martin mine and Peñoles operations, the lead and zinc Mexican production is poised to grow in 2020. Lead production could increase 27.8% to 194.9 K tonnes, with the expected production of 90.7 K tonnes at Peñasquito. Zinc production could increase 27% to 633.2 K tonnes, with its expected production of 192.8 K tonnes. Both zinc and lead face extremely low prices, with zinc at US$0.85/Lb and lead close to US$0.75/Lb.
  • To reduce coronavirus contagion risks, the Dirección General de Minas (DGM) initiated a protocol to process requests and information only through electronic media, for the time that the contingency lasts (in practical terms, the already slow pace of proceedings at the DGM is coming to halt for the time being).
  • The Mining Fund served its purpose at Jiapaz, Zacatecas, where solar panels were installed to power the water system on La Martinica de Guadalupe neighborhood.
  • The Sonora government issued orders to stop all non-essential activities, including mining, as a mean to reduce the propagation speed of the COVID-19 pandemic in the state.
  • Mining companies that presented press releases on Coronavirus related suspension of activities: Argonaut Gold, Sierra Metals, Pan American Silver, Premier Gold Mines, Equinox Gold, GoGold Resources, Gold Resource, Excellon Resources, Endeavour Silver, Azucar Minerals, Avino Silver & Gold Mines, Agnico Eagle Mines, Almaden Minerals, Alamos Gold, Fortuna Silver, Mithrill Resources, Vizsla Resources, Torex Gold, Great Panther, and Golden Minerals.

ON EXPLORATION

  • Silver Viper Minerals Corp. released drilling results at its La Virginia project in Sonora. The Rubi zone strike length increased by 100 m, to a total of 400 m, where a total of 6,103 m in 20 holes have been collared; a further 852 m in four holes were drilled at the Macho Libre target. The results for the last nine holes are still pending. Highlighted true width intervals comprise: 1.42 m @ 156 gpt Ag, 1.79 gpt Au; 2.84 m @ 249 gpt Ag, 1.55 gpt Au (including 0.36 m @ 1,584 gpt Ag, 5.56 gpt Au); 17.04 m @ 28 gpt Ag, 0.69 gpt Au; 1.07 m @ 52 gpt Ag, 1.27 gpt Au; 1.07 m @ 124 gpt Ag, 3.32 gpt Au; 4.26 m @ 38 gpt Ag, 0.64 gpt Au; 6.04 m @ 74 gpt Ag, 0.99 gpt Au (including 1.78 m @ 187 gpt Ag, 2.48 gpt Au. The company recently completed a 4,800-hectare; 718 line-km helicopter borne magnetic-radiometric geophysical survey centered on El Rubi zone.
  • Discovery Metals Corp. announced the temporarily suspension of all exploration activities at its Mexican operations due to the COVID-19 risks. “Discovery has already completed 48 holes totaling 17,500 metres of its planned 30,000 – 35,000 metre Phase 1 drill program. The Company will provide ongoing exploration updates for the 34 drill holes not previously press released once results have been received and validated”. Discovery had a cash balance of CAD$24 M by the end of 2019 (Cordero, Chihuahua).
  • Tocvan Ventures Corp. announced the commencement of the 2020 field program at the Pilar project in Sonora. The focus is to expand the known areas of mineralization, gain a better understanding of structural controls, identify mineralization targets and define drill targets. A multiple-task (?) geophysical survey is underway concurrently with a close-spaced soil sampling program. These surveys will be followed up with structural refining, XRF survey across the property and reviewing historical drill holes.
  • Kootenay Silver Inc. temporarily suspended the current drill programs at its Columba (Chihuahua) and Copalito (Sinaloa) projects, to reduce the propagation risks of the Coronavirus.
  • Advance Gold Corp. released information on drilling at its Tabasqueña project in Zacatecas. One hole was abandoned because of challenging drilling conditions; a second hole intercepted a black slate with small sulphide lenses 0.3 cm to 1 cm in thickness, this unit explains the chargeability anomaly detected by the geophysical survey. The best intercept was 1.25 m @ 2.79% Pb; the third hole also intersected the sulphide bearing black slate unit, assays pending. Teck’ San Nicolas VMS project is 11 kilometers East of Tabasqueña.

ON MINING

  • First Majestic Silver Corp. plans to invest US$46.3 M in capital expenditures at its Santa Elena mine in Sonora. Exploration, the installation of an autogenous mill, exploration and development of the Ermitaño West, mine access preparation and prefeasibility studies are among the use of the funds involved.
  • GoGold Resources Inc. reported the completion of commissioning of the SART plant at its Parral Tailings facility in Chihuahua. “The main economic drivers are the recovery of a high-grade saleable copper sulfide product, the re-generation of cyanide, which is the largest single operating cost at Parral, and improve the leaching efficiency of the heap”. GoGold reduced the need to purchase cyanide by $200 K in March.
  • Excellon Resources Inc. reports 2019 annual and Q4 financial results. At Platosa, in Durango, 19.8 K tonnes @ 435 gpt Ag, 4.84% Pb, 6.39% Zn were processed, recovering 91.7% Ag, 80.2% Pb, 76.5% Zn to produce 259.2 K Oz Ag, 1.69 M Lb Pb, 2.06 M Lb Zn during the quarter. For the full year 75.2 K tonnes @ 409 gpt Ag, 4.75% Pb, 6.82% Zn were processed , recovering 89.9% Ag, 79.2% Pb. 77.7% Zn to produce 1.05 M Oz Ag, 6.1 M Lb Pb, 8.4 M Lb Zn, or 1.93 M Oz AgEq.
  • Odyssey Marine Exploration Inc. reported results for the full year 2019.
  • Equinox Gold Corp. provided production guidance for 2020, including figures from its operations in Mexico. At the Los Filos mine in Guerrero, production is set to range between 170 K to 190 K Oz Au, at an AISC of $1,000 to $1,050 per Oz Au, sustaining capital of $24 M and Non-sustaining capital of $51 M. “The Company is advancing an expansion of the Los Filos mine complex including enlarging the Los Filos open pit, developing a second underground mine (Bermejal), adding a new open pit (Guadalupe) and constructing a new carbon in leach (“CIL”) plant to process higher-grade ore…….. Equinox Gold has budgeted a total capital spend of $75 million at Los Filos during 2020. Non-sustaining capital of $51 million relates primarily to the expansion project and includes $20 million for pre-stripping of the Guadalupe open pit and $23 million allocated to Bermejal underground development”.

ON FINANCING

  • Newmont Corp. has announced expiration and final results of the tender offers for its 3.5% senior notes due 2022 and Goldcorp’s 3.7% notes due 2023. (Peñasquito, Zacatecas).
  • Mithrill Resources Ltd. will be conducting a pro-rata non-renounceable rights issue to allow shareholders, of ordinary shares with a registered address in Australia or New Zealand, to apply for one share for every ordinary share held, to raise $2.45 M (Copalquin, Durango).
  • Southern Silver Exploration Corp. informed recent warrant and option exercised during the current fiscal period. Warrants and options issued in 2015 and 2016 were exercised for $1.25 M in gross profits (Cerro La Mina, Durango).
  • Orla Mining Ltd. closed its previously announced bought deal financing with a syndicate of underwriters led by Stifel GMP and including Desjardins Capital Markets, Paradigm Capital and Cormark Securities Inc. for aggregate gross proceeds of C$75 M.

ON RESOURCES AND DEVELOPMENT

  • First Majestic Silver Corp. updated mineral reserve and mineral resource estimates for the San Dimas (Durango), Santa Elena (Sonora) and La Encantada (Coahuila) producing mines, as well as from its San Martín (Jalisco), La Parrilla (Durango), Del Toro (Zacatecas) and La Guitarra (Estado de Mexico) properties.

First Majestic Reserves and Resources 2019

  • Sierra Metals Inc. updated mineral reserve and mineral resource estimates for its Bolivar mine in Chihuahua. Mineral reserves decreased by 2.5 M tonnes on mining depletion from 2017, but measured, indicated and inferred resources have significantly grown.

Bolívar Reserves and Resources to 201911

  • Mag Silver Reported 2019 annual results. Development of the Juanicipio mine (Zacatecas) and processing plant continue, with the plant expected to commence commissioning in mid-2021. Underground development is ongoing, exceeding now 26 Km. Remaining pre-operative initial capital is estimated at $305 M, although this figure can be reduced by cash in hand of the operator of the JV (Fresnillo 56%, Mag 44%) and expected cash flow from mineralized material extracted and processed at the Fresnillo’s mine facilities commencing in mid-2020. “The Company needs to raise additional capital in the future in order to meet its full share of initial capital required to develop the Juanicipio Project. Mag does not generate operating cash flow at this time to fund such obligations, and accordingly, future liquidity will depend upon its ability to arrange debt or additional equity financings. The Company is currently evaluating several proposals. The inability of MAG to fund its 44% share of cash calls would result in dilution of its ownership interest in Minera Juanicipio in accordance with the shareholders’ agreement”. At the end of the year Mag had $71.86 M including cash and cash equivalents of $72.36 M AuEq.
  • Great Panther Mining Ltd. filed two technical reports regarding the Guanajuato mine complex. “The reports are titled “NI 43- 101 Mineral Resource Update Technical Report on the Guanajuato Mine Complex, San Ignacio Mine, Guanajuato State, Mexico”, dated March 17, 2020, and “NI 43-101 Mineral Resource Update Technical Report on the Guanajuato Mine Complex, Guanajuato Mine, Guanajuato State, Mexico”, dated March 27, 2020”.
  • SilverCrest Metals Inc. released protocols to minimize exposure to coronavirus, in order to decrease the risk to employees, contractors, families and communities near Las Chispas project in Sonora.
  • Evrim Resources Corp. updated the resource on the Ermitaño project in Sonora, of which it holds a 2% NSR. Property owner First Majestic Silver Corp. announced a 15% increase in grade and a 345% increase in contained AgEq ounces in the indicated resources compared to the previous estimate. The indicated resources are 2.1 M tonnes @ 4.59 gpt Au, 70 gpt Ag, containing 311 K Oz Au and 4.73 M Oz Ag; the inferred resources stand at 3.73 M tonnes @ 3.08 gpt Au, 58 gpt Ag, containing 370 K Oz Au, 6.98 M Oz Ag.
  • Bacanora Lithium. Announced the granting of a contract to GR Engineering Services for engineering, acquisition and construction services on the Sonora lithium project.
  • Prime Mining Corp. released a new resource estimate for its Los Reyes project (formerly Guadalupe de Los Reyes) in Sinaloa. The pit constrained resources range from 19.75 M tonnes @ 1.31 gpt AuEq measured and indicated resources (M&I) containing 833.1 K Oz AuEq and 7.1 M tonnes @ 1.14 gpt AuEq in inferred resources containing 261.1 K Oz AuEq at a 0.22 gpt AuEq cutoff; to 5.91 M tonnes @ 2.72 gpt AuEq M&I resources and 1.68 M tonnes @ 2.59 gpt AuEq containing 516.2 K Oz AuEq and 140.5 K Oz AuEq respectively, at a cutoff grade of 1.0 gpt AuEq. The pit strip ratio is calculated as 4.6 to 1 waste to ore in six separate pits.
  • Golden Minerals Co. announced positive results from the updated mineral resource estimate and preliminary economic assessment (PEA) for its Velardeña properties in Durango. The PEA states a pre-tax net present value of $85.9 M at an 8% discount rate, an internal rate of return of 138.6%, pre-production capital cost of $10.27 M, post production and working capital $15.93 M and a life of mine of 10 years to produce 10.2 M Oz Ag, 119 K Oz Au. The resource estimate including sulfide and oxide ore comprises 1.35 M tonnes @ 307 gpt Ag, 4.92 gpt Au, 1.54% Pb, 1.78% Zn in measured and indicated resources, containing, 13.34 M Oz Ag, 214 K Oz Au, 45.8 M Lb Pb, 53 M Lb Zn; and 1.76 M tonnes @ 354 gpt Ag, 4.73 gpt Au, 1.72% Pb, 1.86% Zn, containing 20.1 M Oz Ag, 268 K Oz Au, 67.1 M Lb Pb, 72.3 M Lb Zn.
  • GR Silver Mining Ltd. released assay results from initial underground channel sampling from the San Juan workings at the Plomosas Silver project. San Juan is one of six priority areas with underground development not yet exploited by previous owners. Some of the highlighted composites comprise 2.1 m @ 0.30 gpt Au, 552 gpt Ag, 0.7% Pb, 1.0% Zn (including 0.40 m @ 1.2 gpt Au, 3,003 gpt Ag, 2.9% Pb, 3.1% Zn); 5.0 m @ 0.28 gpt Au, 816 gpt Ag, 0.9% Pb, 0.5 % Zn; 2.0 m @ 0.51 gpt Au, 1,145 gpt Ag, 0.9% Pb, 0.4% Zn; 2.8 m @ 0.42 gpt Au, 482 gpt Ag, 0.4% Pb, 0.4% Zn; 9.3 m @ 0.13 gpt Au, 346 gpt Ag, 0.7% Pb, 1.0% Zn; 3.0 m @ 0.11 gpt Au, 485 gpt Ag, 0.2% Pb, 0.3% Zn.

ON DEALS AND CORPORATE ISSUES

  • GR Silver Mining Ltd. Has completed the acquisition of the Plomosas silver project in Sinaloa, from First Majestic Silver Corp. .GR Silver paid CDN$100 K, granted First Majestic a 2% NSR, of which half could be bought for US$1 M, and issued First Majestic 17.1 M shares of GR Silver. The project comes with six areas at the drilling/resource stage, with 563 drill holes totalling over 100,000 m of core drilling and the mining infrastructure of the Plomosas mine, that produced over 2.5 M tonnes of Pb-Zn-Ag ore.
  • Argonaut Gold Inc. and Alio Gold Inc. have entered into a definitive agreement for an at-market merger whereby Argonaut will acquire all of Alio shares. The transaction creates an intermediate producer with four operations rendering 235 K Oz AuEq per year from four mines and presence in Mexico, Canada and USA, and a pipeline that includes Ana Paula (Guerrero), Cerro del Gallo (Guanajuato) and Magino (Canada).
  • Orex Minerals Inc. entered into an agreement to form a JV with Pan American Silver Corp. to explore and develop the Sandra (formerly Sandra Escobar) project in Durango. Orex and Pan American will own a 40% and 60% interest in the JV.
  • Riverside Resources Inc. has received requisite shareholder approval for the spin-out of the Peñoles Project (Durango) to its shareholders. “Once the Arrangement becomes effective, Riverside shareholders will own shares in two public companies: Capitan, which will focus on the development of the Peñoles Project, and Riverside, which will continue to generate prospective mineral properties”.
  • Mithhrill Resources Ltd. Informed on the proposed acquisition of Sun Minerals Pty Ltd., which holds an option to earn up to 100% interest on the Copalquin project in Durango. Due diligence was completed, a formal share agreement for the acquisition of all issued share capital of Sun Minerals was executed and shareholder approval received. On view of recent market developments, Mithrill and Sun Minerals agreed that Mithrill is to raise a minimum of A$1.5 M.
  • Southern Silver Exploration Corp. entered into an agreement with Monarch Minerals Inc. to purchase the El Sol mineral concession in Durango, near the Sothern Silver and Electrum Global Holdings L.P. Cerro Las Minas JV project. The purchase will not form a part of the Cerro Las Minitas JV. Acquisition cost is $US300 K payable in three equal installments on signature, 12 and 18 months, with the vendor retaining a 2% NSR that can be bought by Southern Silver at any time for US$1 M.
  • Oroco Resource Corp. wishes to clarify and amend its disclosures with respect to its Santo Tomas project in Sinaloa. “The BCSC reviewed the Company’s October, 2019 and March, 2020 corporate presentations (the “Presentations”) and its current technical report dated August 22, 2019 and titled “Technical Report Geology, Mineralization, and Exploration of the Santo Tomas Cu-(Mo-Au-Ag) Porphyry Deposit Sinaloa, Mexico” authored by D. A. Bridge, P. Geol.” (the “Report”). Both the current Presentation and the Report have been removed from the Company’s website pending revision. The disclosure issues in the Presentations and the Report with respect to National Instrument 43-101 (the “Instrument”) and Form 43-101F1 are summarized in the following discussion”.
  • Odyssey Marine Exploration Inc. has launched a NAFTA arbitration process on its “Exploraciones Oceánicas” phosphate project off the Pacific coast of Baja California Sur. “The Arbitral Tribunal, consisting of three international arbitrators well-versed in international investment treaties, has been constituted and the parties are now in the process of finalizing the arbitration schedule and procedures with the Tribunal……..“We intend to continue to work diligently and in good faith with Mexico’s current administration to achieve an equitable resolution of this dispute and to help Mexico provide fertilizer to its farmers, but we are prepared to proceed with the full NAFTA arbitration process if necessary, and have recently received increased litigation funding specifically to support this case”. The Exploraciones Oceánicas project contains an estimated 588 M tonnes of phosphate, at a depth of 70-90 m, lying 25 to 40 km from the coast, with almost no overburden.

ON SOCIAL RESPONSIBILITY

  • Newmont Goldcorp donates 500 COVID-19 tests in Zacatecas. The donation amounts to more than $2 M pesos.
  • Newmont Peñasquito delivered 3,000 cleansing packages, in the communities near the Peñasquito mine in Zacatecas, amidst the fight against the spread of the Coronavirus. The packages are to be delivered in and by local health institutions.

Content like what you have just read can be seen at https://gambusinoprospector.com/ and at LinkedIn’s Mexico Mineral Exploration Group.

On the image below: Hematite-goethite stained quartz vein in an orogenic gold system, Oaxaca. Picture by Jorge Cirett.

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The Mining and Exploration News in Mexico: Highlights on the Fourth Week of January, 2020

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204

By Jorge Cirett

During the 4th week of the year (January 20th to January 26th, 2020), at least 22 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, Highlights on some advanced projects were shared, including Ermitaño, Santana, Media Luna and La Colorada skarn. A good week for Mexican mining companies on the Bolsa Mexicana de Valores (BMV), with share price increments for Grupo Mexico, Industrias Peñoles, Orbia (Mexichem) and Cemex. The president of Mexico stated no mining concessions for lithium have been granted under his term.  ON EXPLORATION, in Sonora, Riverside reported good surface sampling results from its El Cuarenta project; Minaurum completed the phase I drilling program at its Alamos Silver project, testing 19 of 25 identified vein systems; Mexus Gold is looking to JV its Mabel and Ures properties. In Zacatecas, Advance Gold released results from the first hole at a chargeability anomaly in its Tabasqueña project. In Hidalgo, Santacruz Mining staked the Lechuga property.  ON MINING, Argonaut Gold, Coeur Mining, Gold Resource, Premier Gold, Sierra Metals, and First Majestic released production results for Q4 and full year 2019.  ON FINANCING, Silver Spruce filed an amendment at the TSX regarding the Cocula project in Jalisco. ON RESOURCES AND DEVELOPMENT, Minera Alamos announced construction is ongoing at its Santana project in Sonora. Argonaut Gold informed it is reviewing its option on the San Antonio project in Baja California Sur, whereas at Cerro del Gallo in Guanajuato the company is to produce a corrected bundle of documents to re-submit to the authorities for authorization. Silver Crest released high grade results from the Babi Sur vein at its Las Chispas property in Sonora. Impact Silver released good surface sampling results on two veins at an open pit at its Zacualpan property in Estado de Mexico. Mexus Gold started mining a new zone at its Santa Elena mine in Sonora. GoGold released results from nine more holes at its Los Ricos project in Jalisco. Mexican Gold released drilling results from its Las Minas project in Veracruz. Prime Mining announced surface results from road cuts and trenches from its Los Reyes project in Sinaloa. GR Silver Mining updated on its exploration results at its San Marcial project in Sinaloa.   ON DEALS AND CORPORATE ISSUES, Leagold was advised to vote favorably on a proposed merge with Equinox. ON SOCIAL RESPONSIBILITY. The Mining Fund allocated the resources for rehabilitation of a sports field in Santa Barbara, Chihuahua. Esperanza Silver is to apply a new model of mining on the development of the Esperanza mine, in Morelos. Minera San Xavier formalized the transference of its silver’s jewelry shop to one of its employees in Cerro San Pedro, San Luis Potosi. The Guerrero government, the Municipality of Cocula and Torex Gold are to pave a road in Cocula.

ON MEXICO ISSUES

  • Some new projects highlights: First Majestic initiated a 3,000 m development program designed to get the Ermitaño project in Sonora into production by early 2021. Ermitaño is 4 km from First Majestic’s Santa Elena mine. Minera Alamos has started construction of its Santana mine in Sonora, where it expects to start producing gold later in the year from heap leach operations. Torex Gold released a new resource estimation for its Media Luna project in Guerrero, with 12.6 M tonnes @ 5.55 gpt Au Eq containing 2.24 M Oz AuEq as indicated resources, and 33.5 M tonnes @ 4.23 gpt Au Eq containing 4.56 Oz AuEq as inferred resources. The capital needed to take this project into production is estimated at US496 M, to reach a yearly production of 170 K Oz Au, 1.7 M Oz Ag and 21 K tonnes Cu. The giant La Colorada skarn discovery by Pan American Silver in Zacatecas has an initial inferred resource base of 73.5 M tonnes containing 102 M Oz Ag, 3.2 M tonnes Zn, 1.5 M tonnes Pb and 121 K tonnes Cu. The project is to see 44,000 m of drilling during 2020, with a cost of US$7.5 M.
  • Listed mining companies in the Mexican Stock Exchange (Bolsa Mexicana de Valores, or BMV) had a good week. Grupo Mexico was up 5.9%, Industrias Peñoles 1.9%, Orbia (Mexichem) 5.75% and Cemex 8.91%.
  • The president of Mexico, Andrés Manuel López Obrador (also known as AMLO) assured this week that no concession has been delivered on his term for lithium exploitation. (In fact, the delivery of all mining concessions has been halted indefinitely by the actual government).

ON EXPLORATION

  • Riverside Resources Inc. reported on surface sampling and field work at its El Cuarenta project in Sonora. Three prospective targets were identified: Santa Rosalía, Santa Rosalía Sur and El Sombrero, with sampling returning five samples of sixteen above 5 gpt Au, and a best result of 25.7 gpt Au. The Santa Rosalía target consists of multiple sub-parallel low sulfide quartz veins on a fault zone 1 Km long in volcanic rocks. At Santa Rosalía Sur there is an 800 m long structural zone in volcanic rocks with shallow dipping sheeted quartz veins showing banded quartz and lattice textures. El Sombrero displays extensive alteration and high temperature alteration minerals like dickite, pyrophyllite and kaolinite, as well as a highly silicified cap.
  • Minaurum Gold Inc. completed its phase I drill program at the Alamos Silver project in Sonora, testing 19 of the 25 identified vein systems with 18,810 m in 40 holes.. Fourteen of the nineteen vein systems returned high-grade silver intercepts, on a 10 km long by 6 km wide corridor. Highlighted intervals from the last round of drilling comprise: 7.60 m @ 155 gpt Ag, including 2.15 m @ 470 gpt Ag; 0.20 m @ 367 gpt Ag, 6.75 gpt Au, 1.35% Cu, 0.59% Pb, 0.56% Zn at the Púlpito and Cotera veins. 6.60 m @ 1.94% Cu, 0.5% Pb, 1.5% Zn at the Alessandra vein. 1.1 m @ 729 gpt Ag, 1.73 gpt Au, 0.13% Cu, 3.0% Pb, 5.7% Zn at the Promontorio vein. 0.50 m @ 160 gpt Ag at La Dura vein. 1.05 m @ 245 gpt Ag, 0.74% Cu, 0.4% Pb, 0.7% Zn at Las Animas vein. And 7.35 m @ 47 gpt Ag on the Rosario vein. “Phase II is expected to commence in late-March and will include a minimum of 20,000 m of drilling”.
  • Mexus Gold US. is to look for a JV on its Mabel and Ures properties in Sonora. The Mabel property has 611 holes in 6 drilling campaigns since 2002. In the Ures property the targets are a porphyry copper system and high grade silver.
  • Advance Gold Corp. released drill results from one drill hole at its Tabasqueña project in Zacatecas. The first hole into a 1000 x 500 m chargeability anomaly returned 78 m of continuous zinc mineralization, including 1.10 m @ 1.88% Zn, 1.40% Pb, 77 gpt Ag, 0.20 gpt Au and 34 m @ 23 gpt Au, and 1.10 m @ 101 gpt Ag, 0.59% Pb, 0.74% Zn.

ON MINING

  • Argonaut Gold Inc. released production results for 2019 and the fourth quarter 2019. During 2019 the company produced 186,615 Oz AuEq, with 47,521 Oz AuEq produced during the Q4. During the same quarter production at El Castillo complex in Durango was 34,899 Oz AuEq (13,896 Oz AuEq from El Castillo and 21,003 Oz AuEq from San Agustin), and 12,622 Oz AuEq at La Colorada, in Sonora. For 2019, total production was 131,727 Oz AuEq at El Castillo Complex and 55,338 Oz AuEq at La Colorada.
  • Coeur Mining Inc. announced production results for full year 2019 and fourth quarter 2019, including figures from Mexico. At Palmarejo, in Chihuahua, 1.76 M tonnes were milled @ 2.49 gpt Au, 151 gpt Ag, recovering 84.3% Au, 79.3% Ag, to produce 111,932 Oz Au, 6.84 M Oz Ag during the year. During the last quarter 486.8 K tonnes were milled @ 2.18 gpt Au, 159 gpt Ag, recovering 84.9% Au, 81.7% Ag, to produce 28,702 Oz Au, 1.98 M Oz Ag.
  • Gold Resource Corp. provided full-year 2019 and fourth quarter 2019 production results, including figures from its Mexican operations. Production for 2019 in its Oaxaca Mining Unit was 29,435 Oz Au, 1.7 M Oz Ag, 1,859 tonnes Cu, 9,202 tonnes Pb, 23,683 tonnes Zn; during the first quarter 7,554 Oz Au, 417.9 K Oz Ag were produced.
  • Premier Gold Mines Ltd. released production results for the fourth quarter and full year 2019, including figures from its Mexican operations. At Mercedes, 12,274 Oz Au, 44.8 K Oz Ag were produced during the fourth quarter, adding up to 59,901 Oz Au, 191.3 K Oz Ag for the year. The production Guidance for 2020 is 65-75 K Oz Au at cash cost $850-$875 per Oz and all-in sustaining costs of $1,125-$1,275 per Oz.
  • Sierra Metals Inc. reported fourth quarter and full year 2019 production results, including figures from its Mexican operations. At Bolivar, in Chihuahua, 348.4 K tonnes were processed at a 3,982 tpd rate and a grade of 0.87% Cu, 21 gpt Ag, 0.32 gpt Au, recovering 84.8% Cu, 78.7% Ag, 62.3% Au to produce 5.66 M Lb Cu, 185 K Oz Ag, 2,216 Oz Au during the fourth quarter; and 1.27 M tonnes were processed at a rate of 3,628 tpd @ 0.85% Cu, 20 gpt Ag, 0.27 gpt Au, recovering 83% Cu, 79.2% Pb, 63.5% Zn to produce 19.83 M Lb Cu, 640 K Oz Ag, 6,794 Oz Au during the year. At Cusi, in Chihuahua, 61.4 K tonnes were processed at a rate of 702 tpd, at a grade of 210 gpt Ag, 0.14 gpt Au, 0.23% Pb, 0.23% Zn, recovering 79.8% Ag, 28.4% Au, 74% Pb, 0% Zn to produce 190 K Oz Ag, 78 Oz Au, 232 K Lb Pb during the quarter; and 285.2 K tonnes processed at a daily rate of 815 tpd at a grade of 129 gpt Ag, 0.15 gpt Au, 0.2% Pb, 0.2% Zn, recovering 79.1% Ag, 36.1% Au, 75.4% Pb, 0% Zn, to produce 936 K Oz Ag, 493 Oz Au, 904 K Lb Pb for the year.
  • First Majestic Silver Corp. announced 2020 production and cost guidance. San Dimas (Durango), La Encantada (Coahuila) and Santa Elena (Sonora) are the mines to continue in operation, while production has been halted at San Martin (Jalisco) and Del Toro (Zacatecas). The projected AISC is to be in the $13.37-$15.46 range per Oz Ag. At San Martin the mine is closed since mid-2019 due to security concerns, while at Del Toro, 22,450 m of exploration drilling are planned to develop new resources.First Majestic 2020 Guidance1

ON FINANCING

  • Silver Spruce Resources Inc. filed an amendment on the TSX Venture Exchange about the letter of agreement signed with ProDeMin, under which Silver Spruce is required to issue 1.7 M shares. Of those, 1.5 M shares are to be issued to ProDeMin and 200 K shares to the land owners of the Cocula project, in Jalisco (Pino de Plata, Chihuahua).

ON RESOURCES AND DEVELOPMENT

  • Minera Alamos Inc. informed that construction is ongoing at its Santana project in Sonora. The estimated construction time is six to eight months. During January and February is to start preparing the surfaces for leach pads and tailings dam, as well as roads on the mining area.
  • Argonaut Gold Inc. provided an update on its development projects. At San Antonio in Baja California Sur, Argonaut is looking at a probable non-monetary, book value decrement due to the uncertainty of obtaining the needed permits for development. The company is reviewing its options, like looking for zoning regulations changes, a revised environmental application and legal action options. At Cerro El Gallo, in Guanajuato, a “Documento Técnico Unificado” (several studies bundled together, needed to start development of the project) during the second quarter 2019. SEMARNAT asked for several minor changes and re-submittal, which is to be done during 2020 first quarter. SEMARNAT is to have 60 days to present its decision afterwards. Argonaut is also evaluating the possibility of producing fewer ounces in 2020, while improving the cash flow.
  • SilverCrest Metals Inc.released additional in-fill and expansion drill results from 71 holes on the Babi Sur vein at its Las Chispas project in Sonora. The current drilling has augmented the vein averages from 0.95 m (true width) @ 4.10 gpt Au, 268 gpt Ag (575 gpt AgEq) to 1.7 m tw @ 9.82 gpt Au, 382 gpt Ag (1,119 gpt AgEq). These results suggest a wider and higher grade vein than estimated in the previous resources, still open on strike and at depth. Currently there are 17 drill rigs working from the surface, and two from underground. The best drill holes returned true widths of 2.5 m @ 90.98 gpt Au, 108 gpt Ag (6,931 gpt AgEq); 7.8 m @ 10.53 gpt Au, 79 gpt Ag ((877 gpt Ag); 2.8 m @ 12.91 gpt Au, 1,141 gpt Ag (2,109 gpt AgEq).
  • Impact Silver Corp. announced results of a sampling program in the Veta Negra area on its Zacualpan property in Estado de Mexico. At Veta Negra two parallel veins averaging 14 m in width at an historic open pit, with a 650 m strike length. At the open pit about 50 m of vein strike were sampled, averaging 22.70 m @ 206 gpt Ag, 0.02 gpt Au, 0.14% Pb, 0.31% Zn on the El Socorro vein, and 16.02 m @ 208 gpt Ag, 0.13 gpt Au, 0.41% Pb, 0.56% Zn on the Veta Negra vein. A sub parallel vein 120 m from the Veta Negra returned up to 1.20 m @ 59 gpt Ag, 2.11 gpt Au, 0.19% Pb, 0.11% Zn; 1.30 m @ 286 gpt Ag, 1.07 gpt Au, 0.27% Pb, 0.05% Zn; 0.80 m @ 1,595 gpt Ag, 0.64 gpt Au, 0.19% Pb, 0.06% Zn; 0.80 m @ 309 gpt Ag, 1.53 gpt Au, 0.31% Pb, 0.06% Zn; 0.80 m @ 70 gpt Ag, 13.85 gpt Au, 0.21% Pb, 0.09% Zn; 1.90 m @ 215 gpt Ag, 1.04 gpt Au, 0.22% Pb, 0.08% Zn.
  • Mexus Gold US. began mining on the Julio vein/shear zone  via a 300 x 20 m open pit at its Santa Elena mine in Sonora (not to mistake with First Majestic’s Santa Elena mine, also in Sonora). Mined material was crushed and added to the heap leach facilities, with ore assaying 4 gpt Au, and as high as 16 gpt.
  • GoGold Resources Inc. released results from nine more drill holes at Los Ricos project in Jalisco. Highlighted hole length intervals comprise 16.8 m @ 0.36 gpt Au, 86 gpt Ag (1.51 gpt AuEq); 17.1 m @ 0.21 gpt Au, 60 gpt Ag (1.01 gpt AuEq), including 4.5 m @ 0.60 gpt Au, 104 gpt Ag (1.99 gpt AuEq); 18.9 m @ 2.01 gpt Au, 496.4 gpt Ag (8.63 gpt Au), including 5.0 m @ 7.30 gpt Au, 1,833 gpt Ag); 22.7 m @ 0.63 gpt Au, 65 gpt Ag (1.49 gpt AuEq), including 6.7 m @ 1.76 gpt Au, 114 gpt Ag (3.28 gpt AuEq); 12.9 m @ 0.57 gpt Au, 96 gpt Ag (1.86 gpt AuEq), including 6.5 m @ 1.08 gpt Au, 175 gpt Ag (3.41 gpt AuEq); 13.9 m @ 0.62 gpt Au, 80 gpt Ag (1.69 gpt AuEq), including 5.8 m @ 1.34 gpt Au, 141 gpt Ag (3.23 gpt AuEq).
  • Mexican Gold Corp. released drilling results on its Las Minas project, Veracruz. The 13 holes targeted a TEM anomaly, infill at El Dorado, Cinco Señores and Pueblo Nuevo zones. One hole at the TEM anomaly intersected endo skarn and is a good guide to further drilling; Two holes on El Dorado infill intersected higher grade mineralization than expected, a third one did not reach the sought contact zone; The two holes at Cinco Señores did not intersect the contact; At Pueblo Nuevo, drilling intersected several gold bearing veins, without the high gold and base metal values sampled at surface. Highlighted results comprise: 19.5 m tw @ 0.95 gpt Au,4 gpt Ag, 1.30% Cu; 6.0 m tw @ 1.36 gpt Au, 5 gpt Ag, 1.08% Cu; 5.2 m @ 8.94 gpt Au (including 2.0 m @ 21.37 gpt Au); 0.7 m @ 3.23 gpt Au; 0.9 m @ 2.69 gpt Au; 0.95 m @ 2.71 gpt Au.
  • Prime Mining Corp. announced surface results from trenches and road cuts from its Los Reyes project in Sinaloa. These samples show gold grades over significant widths in an area outside the historical resource at El Zapote North and South. Road cut sampling returned 24.5 m @ 7.94 gpt Au, 59 gpt Ag; 13.5 m @ 12.17 gpt Au, 71 gpt Ag; 27.0 m @ 1.53 gpt Au, 25 gpt Ag; 37.5 m @ 0.76 gpt Au, 18 gpt Ag. Surface trenching at Zapote Central returned 30.0 m @ 3.93 gpt Au, 40 gpt Ag; 7.5 m @ 8.71 gpt Au, 60 gpt Ag; 10.5 m @ 0.88 gpt Au, 62 gpt Ag; 25.5 m @ 0.33 gpt Au, 15 gpt Ag.
  • GR Silver Mining Ltd. (Goldplay Exploration Ltd.) updated on its exploration results for 2019 at its San Marcial project in Sinaloa. Late 2019 drill holes returned up to 28.7 m @ 92 gpt Ag, including 13.75 m @ 154 gpt Ag and 0.6 m @ 138 gpt Ag, 0.56 gpt Au. High-grade depth extensions are to be sought by underground drilling below the current resource. XRF litho-geochemistry for target generation has re-commenced and due diligence work started on the potential acquisition of the Plomosas and La Trinidad projects.

ON DEALS AND CORPORATE ISSUES

  • Santacruz Mining Ltd. acquired by staking the La Pechuga property in Hidalgo. The mining concession (application??) covers 3,025 ha 25 km SE from the Zimapan mine. Several historic mines are developed in 3-8 m wide carbonate replacement or skarn mineralization hosted on El Doctor Formation limestone. Previous sampling by the SGM (Servicio Geológico Mexicano) reported up to 770 gpt Ag, 0.50 gpt Au, 21.9% Pb, 13.4% Zn, 0.47% Cu.
  • Leagold Mining Corp. announced a recommendation by advisory firms for a favorable vote on a proposed merger with Equinox Gold Corp., on the special meeting to be held on January 28, 2019 (Leagold: Los Filos, Guerrero. Equinox: Mesquite, California, USA).

ON SOCIAL RESPONSIBILITY

  • The Mining Fund allocated the resources needed for the rehabilitation of the sports field in Santa Barbara, Chihuahua. The facilities were inaugurated by Antonio Bilbao, president of the Municipality, where 336 square meters were rehabilitated, with lighting and other improvements performed, counting on a total investment of $796,381 pesos. Approximately 500 inhabitants benefit with the resources provided by the Mining Fund..
  • Esperanza Silver (Alamos Gold) is to start operations at its Esperanza project in Tetlama, Morelos, by the end of 2020 or early 2021. The company has initiated to inform the communities on the permits obtained and the remaining, in the high margination zone. The project is proposed as “Nuevo Modelo de Minería Social y Ambientalmente Responsable” (A New Model on Socially and Environmentally Responsible Mining), promoting community development, with the respect to human rights and social and environmental issues standing prominently in the company model. By this approach the project would stick by the rules set by the UNO 2030 schedule, with plans for Social Management, Cultural Management and Economic Management. To eradicate poverty, mining can pay taxes and royalties, develop local supply lines, strengthen local value chains, promote inclusive employment, preserve land access, conservation and recycling of water, water management, improve energy efficiency, incorporate renewable energy and keep the public aware of opportunities and limitations.
  • Minera San Xavier formalized the delivery of the company’s silver jewelry shop, “La Victoria”. The shop is located on the historic down town of Cerro San Pedro, in San Luis Potosí, with the sale were included the machinery, tools and silver inventory. The shop was offered to employees and workers of Minera San Xavier through an open bid, of which Mónica Daniela Fierros obtaining the shop by presenting a plan with continuing local team, sustainability, innovation, creativity, quality and leadership.
  • Guerrero’s Governor, Héctor Astudillo, signed an agreement with Minera Media Luna and the Cocula Municipalty, to pave 5 km of road between Real del Limón-La Fundición, benefiting more than 1,200 inhabitants. Each of the agreement signers is to deliver $5 M pesos for the construction work.

Content like what you have just read can be seen at https://gambusinoprospector.com/ and at LinkedIn’s Mexico Mineral Exploration Group.

On the image below: Underground picture of a quartz vein in an orogenic gold system of Oaxaca, by Jorge Cirett.

204

The Mining and Exploration News in Mexico: Highlights on the Second Week of December, 2019

/ Gambusino Prospector / Leave a comment

IMG_0833

By Jorge Cirett

During the 50th week of the year (December 9th to December 15th, 2019), at least 18 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, Bacanora Minerals lithium deposit in Sonora is considered the biggest resource of the metal in the world, according to Francisco Quiroga, Mining sub-secretary. Camimex calls to maintain the competitivity of the mining sector, as it is being threatened by a environmental tax proposal. Newmonts Goldcorp´s Peñasquito mine in Zacatecas is to lift Mexican gold production in 2020, according to BNamericas. Camimex invited the secretary of the environmental agency (SEMARNAT), Victor Manuel Toledo to visit one of the mining units, for him to review what sustainable mining is. He will also be visiting Hermosillo and Ures, meeting with authorities of the municipalities affected by a toxic leak on 2014. ON EXPLORATION, in Chihuahua, Mammoth Resources updated on exploration efforts by partner Centerra at its Tenoriba project; Kootenay Silver released good drilling results on its Columba property. ON MINING, Alamos Gold and Golden Minerals released results for the third quarter 2019. GoGold released results on the year ending in September 2019. ON FINANCING, Advance Gold closed the second tranche of its private placement for gross proceeds of $42 K. Azure Minerals announced the receipt of A$467 K of VAT back taxes (dating to 2016) from the government. Tamino Minerals is planning to become “Pink Current” very soon on the OTC. Odyssey Marine Exploration obtained commitments for up to $4.2 M.   ON RESOURCES AND DEVELOPMENT, Candelaria Mining released results on 15 new holes from the Mirador mine at the Altagracia project in Oaxaca. Pan American Silver announced an initial resource estimate, on the polymetallic  skarn deposit at La Colorada, of 72.5 M tonnes @ 44 gpt Ag, 0.17% Cu, 2.02% Pb, 4.40% Zn, remaining open in most directions, and containing over 100 M Oz Ag. Defiance Silver updated on exploration efforts at its San Acacio project in Zacatecas and at its Tepal project in Michoacán. Prime Mining released surface road cut and trench assays from its Guadalupe de los Reyes project in Sinaloa. ON DEALS AND CORPORATE ISSUES, Tamino Minerals has signed a LOI on the Ofelia property, in Sonora. Discovery Metals informed Eric Sprott now owns 21% interest in the company. Newmont Goldcorp announced a deal with the Cedros community on water resources. ON SOCIAL RESPONSIBILITY. A mining gathering was held in Banamichi, Sonora. The Asociación de Mineros de Sonora celebrated its 40th anniversary. The first “Comité de Desarrollo Regional para las Zonas Mineras” was created in Sonora, to recommend the use of the Mining Fund in certain infrastructure projects in mining areas. Dr. Vagón, Grupo Mexico’s health itinerant clinic was at La Junta, and soon to be moved to the nearby Ciudad Cuauhtémoc, both in Chihuahua. The Consorcio Minero Benito Juárez and the Fundación Bécalos Televisa delivered 120 scholarships to excellency students. A fair was held in Tayoltita, Durango, to bring awareness of the mining work and environment to inhabitants and family members of mine workers. Minera Media Luna is showing a strong support for education in Guerrero, with shcolarships, internships and support to local schools. The Sonora miners association (AMSAC) signed an agreement with the Consejo Regulador del Bacanora, to source agave saplings on its greenhouses to the agave growers. The Mexican gray wolf has left the list of extinct species in the wild, moving to the category of species on extinction risk.

ON MEXICO ISSUES

  • The lithium deposit in Sonora is the major project of its type in the World, according to Francisco Quiroga, Sub-Secretary of Mining, on an interview by a journalist known country wide. He cautioned on not hurrying up to celebrate, as the lithium still has to be extracted, and be metallurgically separated of the other minerals present in the ore (In this project, unlike other, lithium is contained in a clay). This project is assumed to have 243 M tonnes of lithium, surpassing the Thacker Pass deposit in Nevada, the second lithium deposit, with reserves of 179 M tonnes of lithium. The deposit is co-owned by the English company (not Canadian, as stated in the note) Bacanora Lithium and the Chinese Ganfeng Lithium, and located in the Bacadehuachi municipality (tens of kilometers from the Campo Verde Protected Natural Area and the Chihuahua border).
  • Camimex calls for maintaining the competitivity of the Mining Sector in Sonora. The call was made by Karen Flores, Camimex head, on the first Universitary Mining Gathering held in Banamichi, Sonora. She called for a proposal to tax mining operations on environmental grounds to be repelled. Such tax would transform Sonora in one of the more expensive places to mine, in an industry that is already heavily regulated and taxed. According to the authorities, mining in 2018 provided more than 46 billion pesos (US$2.36 billion) in taxes, 9,000 billion pesos (US$461 M) in rights and more than 4,500 billion pesos (US$230 M) in resources for the Mining Fund.
  • Newmont Goldcorp’s Peñasquito mine in Zacatecas is to lift Mexican gold production in 2020, when production by other big players is to decline. The combined production by the three biggest producers in Mexico, Fresnillo, Newmont Goldcorp, and Alamos Gold should reach 1.59 M Oz Au, above the 1.22 M Oz Au mines in 2019. This is a 30% increment year on year, achievable if the companies reach their mid-point guidelines. According to BNamericas this figure is more than half the 3.15 M Oz Au to be produced by more than 20 companies in Mexico. Fresnillo’s production reached 923 K Oz Au in 2018, expects to produce 885 K Oz in 2019, 785 K Oz in 2021 and 665 K Oz in 2022; the decline motivated by the end of production at the Noche Buena mine and less production at Herradura. Meanwhile, Peñasquito expects to produce 575 K Oz Au in 2020 , and a little bit more in 2021, before production starts to decline due to lower grades. Alamos Gold expects to produce 150 – 160 K Oz Au during 2019 in Mulatos, while the Chanate mine is to produce only 5 K Oz. Minera Frisco and Agnico Eagle have seen their gold production dwindle in 2019, while Torex Gold reached 138 K Oz Au produced during the third quarter, and the company expects to sell 430 K Oz Au this year. Leagold also is to increase production at Los Filos, expecting to double on the 200 K Oz Au forecasted for this year.
  • Camimex invited Victor Manuel Toledo, secretary of the environment and natural resources (SEMARNAT) to visit one of the mining units, for him to review what sustainable mining is. Earlier in the day, in the morning presidential conference, Toledo stated that Semarnat is not against mining: “For Semarnat there is not good or bad mining, revisions have to be on a case by case basis, and confirm through inspection its adherence to norms”.
  • Victor Manuel Toledo, secretary of the environment and natural resources (SEMARNAT) is to be in Hermosillo in December 18th for the presentation of a book on the toxic leakage of 2014, and in Ures to meet with affected parties and authorities of municipalities within the Rio Sonora basin.
  • Alberto Orozco, president of the Sonora Mining Cluster, praised the visit that Victor Manuel Toledo (Environmental Secretary) is to make next week to a mining unit in Sonora. Orozco stressed the presence in Sonora of companies highly involved in the social and economic development of the producing regions in a sustainable manner. He also pointed that the Sonoran mining production is 36% of the national production, contributing with 18% of the State gross domestic product.

ON EXPLORATION

  • Mammoth Resources Corp. updated on exploration efforts at its Tenoriba project, funded by partner Centerrea Gold Inc.. Field logistics have been set, all historical geologic data compiled for Centerra’s review and interpretation and a 3D model is under preparation; all un-assayed core was sent for analysis, and the previous drill program permit is being closed, and a new one is to be prepared. Strong argillic, argillic and minor vuggy silica is present on volcanic rocks on a 4 to 6 Km long belt, with geophysics re-processing pointing to a larger target than previously envisaged, and a new 30 line-Km survey is being planned. A large soil anomaly highlights the eastern part of the corridor. Mammoth is working on community consultation processes with the two ejidos (communal lands) involved.
  • Kootenay Silver Inc. released results from six holes drilled at its Columba project in Chihuahua. Highlighted intervals comprise: 25.85 m @ 200 gpt Ag (including 11.5 m @ 415 gpt Ag, which includes 4.0 m @ 721 gpt Ag, which includes 1.9 m @ 982 gpt Ag) in silicified breccias in proximity to a lithological contact; 6.25 m @ 67 gpt Ag (including 2.09 m @ 172 gpt Ag); 3.0 m @ 314 gpt Ag (including 0.63 m @ 776 gpt Ag); 59.8 m @ 48 gpt Ag (including 9.57 m @ 146 gpt Ag); 6.63 m @ 103 gpt Ag and 1.0 m @ 124 gpt Ag. Several of the intercepts are in quartz veins in rhyolite, as quartz stockworks and as quartz-barite veins.

ON MINING

  • Alamos Gold Inc. released some production figures for 2019, including data on its Mexican production. At Mulatos, in Sonora, during the first nine months of this year 20 K tonnes per day were stacked @ 0.92 gpt Au, with a recovery of 67%, to produce 108 K Oz Au at cash cost $772 and a mine-site AISC of $861. Production from the Mulatos district is expected to total 150-160 K Oz Au in 2020, with ore mined from the Mulatos, El Victor and San Carlos open pits, as well as new production from Cerro Pelon. “A total of $7 million has been budgeted at Mulatos for exploration in 2020 which includes 14,000 m of drilling focused in the Mulatos near-mine, Carricito and La Yaqui Grande areas. A number of regional exploration targets have been identified in 2019 from the property-wide VTEM geophysical survey that was completed in late-2018. A focus of the 2020 regional exploration program will be to further evaluate these targets through systematic mapping, sampling, and ground geophysics”.
  • Golden Minerals Co. released results for the third quarter 2019. During the period Golden reported revenue of $1.9 M related to the lease of Velardeña’s oxide mill and costs of $0.6 M related to the services provided under the terms of the lease, for a net operating margin of $1.3 M. Exploration expenses were $0.9 M, Velardeña care and maintenance $0.4 M, administrative expenses $0.7 M for a total loss of $1.8 M for the quarter. Last October Golden entered into an agreement with Magellan Gold Corp. to sell the company’s option to earn a 100% interest in the Santa Maria and Las Marias exploration properties in Chihuahua. Cash and cash equivalents of $2.9 M by the end of the period.
  • GoGold Resources Inc. announced financial results for the year ending 2019. During the last quarter period the company acquired the Los Ricos project in Jalisco, for share consideration of $5.4 M and cash $4.5 M, of which $3.9 M is payable over three years. During the period the company sold 1 M Oz Ag and 8,752 Oz Ag, produced 1.78 M Oz AgEq, had income of $8.1 M at an AISC of $14.82 per Oz AgEq and cash cost $11.80 per OZ AgEq, a gain of $11.8 M on the sale of the Santa Gertrudis project royalty and has a net working capital of $13.1 M.

ON FINANCING

  • Advance Gold Corp. closed the second and final tranche of the private placement previously announced, for gross proceeds of $42 K (Tabasqueña, Zacatecas).
  • Azure Minerals Ltd. announced that the Mexican tax office has paid this week the amount of MX$6.19 M, approximately A$467 K. This is the interest component from a previous payment, bringing the total received by Azure to A$1.23 M. The payments are the result of the successful resolution of the company’s legal action for the recovery of IVA (the equivalent to GST, or VAT) dating to the 2016 financial year. A fee of 15% is payable to the legal and tax advisors involved (Alacrán, Sonora).
  • Tamino Minerals Inc. is planning to become Pink Current very soon on OTC markets, abiding to OTC disclosure lines. As of the end of September 2019, the company has 370.6 M shares, of which Pedro Villagran holds 138.8 M and Joseph Berry 33 M.
  • Odyssey Marine Exploration, Inc. obtained commitments for up to $4.2 M in funding in two separate arrangements. A group of existing shareholders is to provide up to $2 M in funding ($539 K already submitted) as advance against a portion of multi-million dollar payment Odyssey expects to receive within the next six months, related to a previously completed ship-wreck project. In addition, “a term sheet has been executed and definitive agreements are being drafted with the group that has already committed up to $6.5 million in non-recourse legal funding for the NAFTA action for up to an additional $2.2 million” (Bay of Ulloa, Baja California Sur).

ON RESOURCES AND DEVELOPMENT

  • Gold Resource Corp. released drill results from 15 holes from the Mirador mine area in the Altagracia project in Oaxaca. The Mirador mine is 16 Km NW from the Company’s Aguila project and processing facilities. Highlighted results comprise: 9.21 m @ 0.24 gpt Au, 260 gpt Ag (including 0.73 m @ 0.58 gpt Au, 1,085 gpt Au); 1.38 m @ 4.39 gpt Au, 1,455 gpt Ag; 1.08 m @ 1.81 gpt Au, 2,190 gpt Ag; 5.99 m @ 1.04 gpt Au, 206 gpt Ag (including 1.54 m @ 2.02 gpt Au, 590 gpt Ag); 3.72 m @ 1.44 gpt Au, 910 gpt Ag (including 1.0 m @ 2.84 gpt Au, 2,610 gpt Ag); 2.67 m @ 1.10 gpt Au, 354 gpt Ag.
  • Pan American Silver Corp. announced an initial mineral resource estimate for the large polymetallic deposit discovered in 2018 at La Colorada mine in Zacatecas. The inferred mineral resource is 72.5 M tonnes @ 44 gpt Ag, 0.17% Cu, 2.02% Pb, 4.40% Zn, remaining open in most directions and containing 102 M Oz Ag, 3.2 M tonnes of Zn, 1.5 M tonnes of Pb, and 121 K tonnes of Cu. Most of this mineralization is contained within a larger mineralized skarn 500 m x 600 m, between 600 and 1,700 m of depth. To make the geologic interpretation and resource estimation, 65 drill holes totalling 54,000 m of drilling were utilized.
  • Defiance Silver Corp. updated on exploration efforts to be made at its San Acacio project in Zacatecas. Targeted core re-logging and selective re-assay is on-going and will continue through 2020, while field exploration involves surface geochemistry outside the resource area, systematic underground mapping and sampling and regional targeting are carried out.
  • Defiance Silver Corp. announced OreQuest has been planning an exploration program at Tepal, in Michoacan. The aim is to follow up on high-grade drill results as the 1.42 m @ 25 gpt Au, 565 gpt Ag of last year campaign, which is coincidental with highly anomalous surface geochemistry and an untested chargeability anomaly.
  • Prime Mining Corp. released results from surface exploration at it Los Reyes property in Sinaloa. The trenching program has an advance of 25% with highlighted results of 5 m @ 1.0 gpt Au, 11 gpt Ag; 10.5 m @ 2.0 gpt Au, 18 gpt Ag; 16.5 m @ 2.5 gpt Au, 40 gpt Ag; 36.0 m @ 1.84 gpt Au, 13 gpt Ag; 34.5 m @ 4.2 gpt Au, 21 gpt Ag; 13.5 m @ 1.54 gpt Au, 37 gpt Ag in rod cuts, and 9 m @ 0.92 gpt Au, 22 gpt Ag; 4.5 m @ 2.66 gpt Au, 30 gpt Ag; 13.5 m @ 1.42 gpt Au, 49 gpt Ag; 13.5 m @ 1.59 gpt Au, 28 gpt Ag; 7.5 m @ 1.84 gpt Au, 37 gpt Ag; 16.5 m @ 1.04 gpt Au, 23 gpt Ag; 15.0 m @ 5.58 gpt Au, 23 gpt Ag in trenches. The company is working with the database of 493 historic drill holes to establish a new 43-101 compliant resource (currently holding 380 K and 155 K Oz Au in the indicated and inferred categories respectively).

ON DEALS AND CORPORATE ISSUES

  • Tamino Minerals Inc. informed it has singed a letter of intent (LOI) on the Ofelia property in Sonora. The LOI terms state four years of staged payments totalling US$1 M plus a 2% NSR, and provides a 90-day term for due-diligence work.
  • Discovery Metals Corp. announced that with the conversion of 3.3 M subscription receipts to shares, Mr. Eric Sprott owns now approximately 21% interest in the company (Cordero, Chihuahua).
  • Newmont Goldcorp. announced that the Peñasquito mine and the nearby San Juan Cedros community (one of 25 neighbouring communities) in Zacatecas, agreed to an infrastructure solution for sustainable water availability for the community. The 30-year water agreement includes additional water wells to supplement the 600 K liters per-day reverse osmosis drinking water plant the company built in 2018.

ON SOCIAL RESPONSIBILITY

  • A Mining Gathering was held in Banamichi, Sonora, with more than 600 attendees, mostly students, with the purpose of letting them know the opportunities for internships and employment in mining units. Among the attendees were also governors of mining states, the ambassadors of mining countries, Congress representatives, Union leaders, 14 majors and representatives for mining companies, mining associations and mining communities.
  • The Asociación de Mineros de Sonora (Sonora’s Miners Association, or AMSAC) celebrated its 40th The celebration included a series of presentations and a formal dinner. Among the speakers were Francisco Quiroga (Mining Sub-secretary), Karen Flores (Camimex), Ernesto [Ríos (Americas Mining) and Lourdes McPherson (Argonaut Gold).
  • The first “Comité de Desarrollo Regional para las Zona Mineras (Mining Zones Development  Committee) was created in Hermosillo, Sonora. The finality of such committees is to assess and approve investment projects derived from the Mining Fund, incorporating all interest groups. The committee is integrated by:Comite Fondo Minero11The fist session is to be held in February 28, 2020, and the second on August 28, 2020.
  • Dr. Vagón is to be at La Junta, Chihuahua. From the 12 to the 16 of December, 2019. Among the services to be provided are: general consult, dermatology, pediatric care, geriatric care, odontology, chiropractic, physic rehabilitation, optometry, audiometry, mastography, colposcopy, family planning, lab test, diabetics clinic, psychology and nutrition. This itinerant train-mounted clinic has the capacity to Attend 550 persons daily.
  • The Safety, Environment and Social Responsibility Fair San Dimas 2019, was held on December 6 in Tayoltita, Durango. The different departments of the First Majestic mine displayed details on their work on the mining process, in a didactic and entertaining way, to workers, suppliers, municipality and State authorities, as well as their families and local inhabitants. Radio Plata (Silver Radio) was commissioned, the first radio station to be located in the vicinity, is part of the company’s Centro Cultural, where educative, social and cultural activities are to take place.
  • Minera Media Luna is showing a strong support for education in Guerrero. With support from local authorities in Cocula, the Instituto Tecnológico de Iguala, the Universidad Tecnológica Autónoma del Norte de Iguala, the State government, the Instituto Estatal para la Educación de Jóvenes y Adultos de Guerrero and the general population in Cocula, the company has: installed programs for diminishing the educative lag in primary and secondary education; taken 36 students in internships from local universities; supported 86 students through scholarships; invested $500 K pesos along with the Cocula municipality for the hiring of primary education personnel; participated in the Fourth Week of Mining on the Universidad Autónoma de Guerrero…. And several other programs in education not posted here for lack of space.
  • AMSAC, the Sonora Miners Association, signed an agreement with the Consejo Regulador del Bacanora (Regulatory Council for Bacanora, a spirits drink). Under this agreement , several mining companies are to grow the needed agave saplings for the production of Bacanora in their green houses, to be transplanted in the field by the agave growers.
  • Minera Peña Colorada presented the “Ilustred Guide to Wildlife in the Minatitlan Microbasin”, at the Feria Internacional del Libro 2019, in Guadalajara, Jalisco. This work was accomplished with the support of the Universidad Nacional Autónoma de México, and the Benemérita Universidad de Puebla.
  • The Mexican gray wolf has left the list of extinct species on the wild, moving to the category of species on extinction risk. This is the result of an international effort among the USA and Mexican governments, with the participation of Grupo Mexico. The declaration comes after 12 liberations and the documentation of 9 successful litters with some 30 puppies on the wild. Grupo Mexico, as well as other mining companies, has an UMA (Environmental Management Unit) that take care and reproduce threatened species.
  • Dr Vagón, Grupo Mexico’s health train, is to be on Ciudad Cuahutémoc, Chihuahua, from December 18 to December 22. The 17 train carriages itinerant clinic has the capacity to attend 600 persons per day, providing for a wide array of services, like diagnostics, ailment prevention, dermatology, odontology, physical rehabilitation, optometry, audiometry, psychology, nutrition, diabetes and chiropractic treatments.

Content like what you have just read can be seen at https://gambusinoprospector.com/ and at LinkedIn’s Mexico Mineral Exploration Group.

On the image below: Sheeted quartz veinlets from an orogenic gold project in Oaxaca. Picture by Jorge Cirett

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The Mining and Exploration News in Mexico: Highlights on the Second Week of August, 2019

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By Jorge Cirett

During the 32nd week of the year (August 5th to August 11th, 2019), at least 36 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, The president of Mexico announced in a political rally that no more mining concessions are to be granted during his term in office. ON EXPLORATION, In Chihuahua, Kootenay has mobilized a drill rig to its Columba property. In Coahuila, Discovery Metals released high-grade results from underground sampling at Minerva. In Zacatecas, Alien Metals carried out surface sampling at Los Campos, Donovan and San Celso projects; Advance Gold started an IP survey at Tabasqueña. ON MINING, Gold Resource, Premier Gold, Hecla Mining, Golden Minerals, First Majestic, Coeur Mining, Argonaut Gold, Pan American Silver, Avino Silver, Endeavour Silver, Alio Gold, Torex Gold, Fortuna Silver and GoGold reported second quarter production and/or financial results for the second quarter. Mexus Gold poured first gold at its Santa Elena mine in Sonora. ON FINANCING, Excellon Resources entered into an agreement with a sole bookrunner for gross proceeds of $10 M. Santacruz Silver granted options to its directors, officers, employees, consultants and advisors. Oroco closed a first tranche for $900 K. Impact Silver completed the first series of a round of financing for $2.4 M in gross proceeds.   ON RESOURCES AND DEVELOPMENT, US Antimony continues mining at Los Juarez, Queretaro. Hecla presented drill results from San Sebastian, Durango. Orla Mining filed the FS on Camino Rojo Oxide project. VVC Exploration approved the construction of a pilot plant on its Northern Mexico Copper project. Minera Alamos received the needed environmental approval for mine construction at Santana, Sonora. Goldplay Exploration compiled all the exploration information on a 6 km trend outside the known resource in San Marcial, Sinaloa ON DEALS AND CORPORATE ISSUES, Discovery Metals filed an early warning report in respect to its holdings in Levon Resources. Tamino Minerals is working to remove the stop sign to become current on the OTC. Minera Alamos reported the retirement from the Board of Directors of Mr. Chester Millar, (a long time player in the Mexican Mining scene). Mako Mining informed the near completion of production from La Trinidad mine in Sinaloa. Chesapeake Gold re-purchased a 1% NSR from Wheaton Precious Metals. ON SOCIAL RESPONSIBILITY. Argonaut Gold engaged in multiple community projects during the second quarter on its operations at San Agustin (Durango), El Castillo (Durango), La Colorada (Sonora) and La Paz (Baja California Sur).

ON MEXICO ISSUES

  • No more mining concessions in my term: AMLO. The president of Mexico, Andres Manuel Lopez Obrador, announced this Sunday (August 11th, 2019) in a political rally in Concepcion del Oro, Zacatecas, that under his term no more mining concessions are to be granted. “To give concessions of the mining regions to national and foreign companies was a policy forwarded since the time of (Carlos) Salinas de Gortari, and up to 80 million hectares were delivered for mining exploitation. To grasp it: let’s think in our territory. Mexico has 200 million hectares, and 80 million hectares, about 40 percent of the national territory. Never in History so much of our sovereign soil had been transferred”, he said. He also reiterated that current concessions are to continue, but no new ones are to be delivered. “We are not to cancel (the concessions), but we are not to continue delivering new concessions for mining exploitation. Because it was too much what was delivered. If we analyze it, we are going to conclude that it wasn’t delivered to produce, but to speculate financially ………. With what has been delivered they have to produce. That’s the main purpose and not speculation. What we ask the mining companies is, first, take care of the environment, that no territory is destroyed, not to act as it is done in other countries”. He asked for Mexican miners to be paid as in the United States, or Canada, and that the same environmental rules be applied, also making a call for the salaries of workers to be raised, with the same benefits. (Editor’s note.- All the president arguments can be easily refuted to show that granting mining concessions is, and has been, very helpful for the country and countless of Mexicans. But there is no valid argument to present to the president that on the one hand is calling for more investment, while in the other hand is closing the door to it.)

ON EXPLORATION

  • Kootenay Silver Inc. has mobilized a drill rig to commence a 3,000 m core drill program at its Columba project in Chihuahua. “The first 12 holes of the drill program will be designed to test the F vein where underground development work extended to 200 meter depth and the historic mining occurred”.
  • Alien Metals Ltd. carried out some surface rock sampling at its Donovan, Los Campos and San Celso projects in Zacatecas, results pending.
  • Advance Gold Corp. started a 800 x 500 m 3D induced polarization (IP) geophysical survey on its Tabaqueña project, Zacatecas. The goal of the survey is to assess the depth potential below the near surface mineralized zone that was encountered in the andesites, with the graphitic phyllites below still open at depth.
  • Discovery Metals Corp. released assay results for 112 underground samples from its drill permitted Minerva Ag-Zn-Pb project in Coahuila. Highlighted results from the Minerva mine include 0.4 m @ 8,880 gpt Ag, 8.7% Zn, 43.2% Zn, 2.30% Cu, 0.3 m @ 1,200 gpt Ag, 24.8% Zn, 18.2% Pb, 0.15% Cu; 0.2 m @ 1,340 gpt Ag, 20.8% Zn, 19.6% Pb, 0.11% Cu; 0.9 m @ 517 gpt Ag, 5.7% Zn, 3.3% Pb, 0.07% Cu in veins, 0.3 m @ 1,485 gpt Ag, 8.6% Zn, 32.1% Pb, 0.10% Cu; 0.3 m @ 1,145 gpt Ag, 10.8% Zn, 34.8% Pb, 0.10% Cu; 0.5 m @ 220 gpt Ag, 34.6% Zn, 13.2% Pb, 0.05% Cu; 0.4 m @ 1,050 gpt Ag, 5.8% Zn, 26.4% Pb; 1.4 m @ 131 gpt Ag, 22.2% Zn, 2.7% Pb, 0.04% Cu in mantos. Underground samples from the Concordia area returned 0.7 m @ 848 gpt Ag, 2.7% Zn, 12.5% Pb, 0.24% Cu; 0.8 m @ 320 gpt Ag, nil Zn, 13% Pb, 0.06% Cu; 1.1 m @ 267 gpt Ag, 0.4% Zn, 6.3% Pb, 0.06% Cu in vein and limestone. At Tercia area, samples from a small working in diorite returned 0.5 m @ 226 gpt Ag, 0.2% Zn, 15.5% Pb; 0.5 m @ 181 gpt Ag, 0.2% Zn, 10.0% Pb; 1.3 m @ 124 gpt Ag, 3.2% Zn, 6.1% Pb in breccias (fault zones?).

ON MINING

  • Mexus Gold US. has poured gold at its Santa Elena mine in Sonora (not to mistake for First Majestic’s Santa Elena mine, also in Sonora). The company recovered gold from its first heap leach pad using its Merrill Crowe gold recovery system. Mexus continues to mine and crush ore for the 2nd lift on heap leach pad #1.
  • Gold Resource Corp. presented production results for the second quarter 2019. At the Oaxaca’s Mining Unit 7,881 Oz Au, 466.5 K Oz Ag, 482 tonnes Cu, 2,304 tonnes Pb, 6,054 tonnes Zn were produced. At the Arista mine 115.8 K tonnes were milled @ 1.87 gpt Au, 92 gpt Ag, 0.40% Cu, 1.96% Pb, 4.77% Zn. At the Aguila open pit mine 8,872 tonnes were milled @ 1.39 gpt Au, 43 gpt Ag. At the Mirador mine 6,737 tonnes were milled @ 1.10 gpt Au, 201 gpt Ag. The company had $7.93 M of cash and cash equivalents by the end of the period.
  • Premier Gold Mines Ltd. reported operating results for the second quarter 2019, including figures from its Mexican operations. At Mercedes, in Sonora, 167.6 K tonnes were milled @ 3.0 gpt Au, 27.2 gpt Ag, recovering 95.9% Au, 35.0% Ag to produce 15,532 Oz Au, 51,354 Oz Ag. Co-product cash cost was $1,053 per Oz Au, and the co-product all-in-sustaining cost was $1,254 per Oz Au. On by-product basis, cash cost was 1,044 per Oz Au and AISC $1,252 per OZ Au. A total of 11,281 m of drilling targeted the Diluvio, Marianas and Barrancas veins “to replace reserves support mine production, test extensions of the main mine trends and to test new geological targets.”
  • Hecla Mining Co. presented second quarter 2019 results, including figure from its operations in Mexico. At San Sebastian, Durango, 463.7 K Oz Ag, 3,547 Oz Au were produced at by-product cash cost $9.22 per Oz Ag and by-product AISC$15.50.
  • Golden Minerals Co. released financial results for the second quarter 2019. An important point on the report is the still to be completed $22 M sale of the Velardeña, Santa Maria and Rodeo properties, as well as the Velardeña mill, to Grupo Autlan. Golden had a net loss of $2.5 M , ending the period with $1.8 M in cash and cash equivalents.
  • First Majestic Silver Corp. announced financial results for the second quarter 2019. During the period 3.2 M Oz Ag, 6.4 M OZ AgEq were produced at cash cost $6.84 per Oz Ag, and AISC $ 14.76 per Oz Ag on a consolidated basis from its San Dimas (Durango), Santa Elena (Sonora), La Encantada (Coahuila), San Martin (Jalisco), La Parrilla (Durango), Del Toro (Zacatecas). At the end of the period the company had $94.5 M in cash and cash equivalents.First Majestic production table1
  • Coeur Mining Inc. reported second quarter 2019 financial results, including figures from its Mexican operations. At Palmarejo, in Chihuahua, 447.7 K tonnes were milled @ 2.18 gpt Au, 147 gpt Ag, recovering 87.7% Au, 81.8% Ag, to produce 28,246 Oz Au, 1.73 M Oz Ag at adjusted CAS $741 per Oz Au and adjusted CAS $9.17 per Oz Ag. Production started and is to be ramped up 400 tonnes per day (tpd) at La Nacion deposit.
  • Argonaut Gold Inc. announced its operating and financial results for the second qurter of 2019. At Cerro del Gallo in Guanajuato, Argonaut is advancing on the pre-feasibility study, whereas at San Antonio in Baja California participated in a public information meeting regarding the environmental impact assessment process, while advancing in environmental permitting. At El Castillo, Durango, 2.3 M tonnes of ore @ 0.39 gpt Au, 3.49 M tonnes of waste were moved at a rate of 64 K tonnes per day (tpd) to produce 14,361 Oz Au, 29,791 Oz Ag at cash cost $976 per gold equivalent ounce. At San Agustin (Durango), 1.96 M tonnes of ore @ 0.39 gpt Au, 1.41 M tonnes waste were moved at 37 K tpd to produce 12,684 Oz Au, 43,097 Oz Ag at cash cost $910 per gold equivalent ounce. At La Colorada (Sonora) 1.19 M tonnes of ore @ 0.46 gpt Au, 5.9 M tonnes of waste were moved at 78 K tpd to produce 11,723 Oz Au, 35,485 Oz Ag at cash cost $894 per gold equivalent ounce.
  • Pan American Silver Corp. reported unaudited results for the second quarter 2019, including figures from its Mexican operations. At La Colorada, in Zacatecas, 2.04 M Oz Ag, 1.1 K Oz Au were produced at cash cost $2.82 per Oz Ag and AISC $5.07 per Oz Ag. At Dolores, in Chihuahua, 1.23 M Oz Ag, 28.5 K Oz Au were produced at cash cost $6.87 per Oz Ag and AISC $22.30 per Oz Ag. “Drilling at the La Colorada mine has further defined the skarn mineralization, indicating a high concentration of base metal and silver mineralization over large widths”. By the end of the period the company had cash and shorth-term investments for $138.8 M, and working capital of $793.1 M.
  • Avino Silver & Gold Mines Ltd. released consolidated financial results for the second quarter 2019. During the period 200.9 K tonnes were milled to produce 426.1 K Oz Ag, 1,609 Oz Au, 1.14 M Lb Cu, or 599.5 K Oz AgEq, with consolidated cash cost per AgEq ounce of $10.89, and AISC $13.10 per AgEq ounce. At the end of the quarter Avino held $3.4 M of cash, and a working capital of $8.7 M.
  • Endeavour Silver Corp. released its financial results for the second quarter 2019. Consolidated production from its Guanacevi (Durango), Bolañitos (Guanajuato), El Cubo (Guanajuato) and El Compas (Zacatecas) mines was 1.06 M Oz Ag, 9,558 Oz Au, or 1.8 M Oz AgEq at an all-in-sustaining cost of $20.90 per Oz Ag net of gold credits. During the period received the final tailings permit for its Terronera project in Jalisco, and reported positive drill results from Bolañitos and Guanacevi.
  • Alio Gold Inc. reported second quarter 2019 results, including figures from its operations in Mexico. At San Francisco, in Sonora, produced 10,230 Oz Au, 5,112 Oz Ag, with a by-product cost of $1,077 per Oz Au and an AISC of $1,079 per Oz Au. In January 2019 Alio stopped active mining in the San Francisco pit and focused on processing the low grade stockpile, which is to continue until the end of the year, after which only residual leaching is to go on.
  • Torex Gold Resources Inc. announced financial and operating results for the second quarter 2019. At El Limon-Guajes in Guerrero, 145.7 K tonnes per day (tpd) were moved, including 19,890 tpd of ore @ 2.91 gpt Au, with a recovery of 88% Au to produce 113,645 Oz Au at cash cost $605 and AISC $760. The Muckahi mining system is said to be on the way to demonstrate its efficacy by year end. Torex released a maiden underground mineral resource estimate for El Limon Deep of 797 K tonnes @ 5.52 gpt Au, containing 171 K Oz Au as an indicated mineral resource. The company had a cash balance of $131 M by the end of June.
  • Fortuna Silver Mines Inc. presented consolidated financial results for the second quarter 2019, including figures from its Mexican operations. At San Jose, Oaxaca, 271 K tonnes were milled at a rate of 3,045 tpd, grading 273 gpt Ag, 1.78 gpt Au, with a recovery of 91% Ag, 90% Au to produce 2.16 M Oz Ag, 13,204 Oz Au at cash cost $6.20 per Oz Ag and an AISC of $9.3 per Ag Oz. By the end of the period Fortuna held $77.2 M in cash and cash equivalents.
  • GoGold Resources Inc. reported second quarter results 2019. During the period GoGold produced 451 K Oz Ag from the Parral tailings. By the end of June the company had $9.0 M in cash and marketable securities and no debt.

ON FINANCING

  • Excellon Resources Inc. entered into an agreement with Cormark Securities Inc. as sole bookrunner and lead underwriter to buy units of the company for gross proceeds of approximately $10 M (Platosa, Durango).
  • Santacruz Silver Mining Ltd. granted 8.5 M stock options options to its directors, officers, employees, consultants and advisors (Veta Grande, Zacatecas; Rosario, San Luis Potosi).
  • Oroco Resource Corp. closed the first tranche of the previously announced non-brokered private placement for gross proceeds of $900 K (Santo Tomas, Sinaloa).
  • Impact Silver Corp. completed the first series of the third tranche of the non-brokered private placement previously announced and updated, receiving aggregate gross proceeds of $2.44 M. The company intends to complete a second series of the third tranche for gross proceeds of $554.2 K. Impact has paid $56 K to Infor Financial Inc. and $50 K to Canaccord Genuity Corp. as finders fee (Zacualpan, Estado de Mexico).

ON RESOURCES AND DEVELOPMENT

  • United States Antimony Corp. continues mining in two open pits at Los Juarez mine in Queretaro. At the Puerto Blanco mill in Guanajuato maintenance and improvements are being made to support increased production. At the Puerto Blanco leach circuit the plastic liner and fire assay equipment have been purchased. At the Madero smelter in Coahuila, The caustic leach plant has been tested and is operational to produce gold, silver, and antimony.
  • Hecla Mining Co. added new mineralization by drilling on the Middle and El Toro veins, potentially adding oxide mine life to San Sebastian, in Durango. Near-surface mineralisation has been defined by drilling for over 1,200 m along strike and 160 m of depth. Recent intercepts include 2.40 m @ 874 gpt Ag, 11.5 gpt Au; 1.50 m @ 398 gpt Ag, 1.86 gpt Au; 3.41 m @ 236 gpt Ag, 3.42 gpt Au. “Preliminary engineering studies have begun to evaluate the potential of both open pit and underground mining options at El Toro and drilling in this area is planned to continue through the third quarter.”
  • Orla Mining Ltd. filed a technical report on its Camino Rojo project, Zacatecas. The company previously released the results of the feasibility study (FS) for the oxide part of the mineralized body, which envisages the movement of 44 M tonnes @ 0.73 gpt Au, 14.2 gpt Ag to leach pads, and a recovery of 64% Au, 17% Ag.
  • VVC Exploration Corp. board of directors approved the start of a pilot mine on the Gloria Zones of its Northern Mexico Copper Project (Samalayuca) in Chihuahua. The plan envisions open pit mining and heap leach extraction by electrowinning (SX-EW) starting at 2 K tonnes per day (tpd) of mineralized material, scalable to 4 K tpd.
  • Minera Alamos Inc. received the approval of the environmental impact statement (Manifestación de Impacto Ambiental, or MIA) by SEMARNAT, the regulatory federal environmental agency, rendering the company with the key approvals for the construction of  commercial scale mining facilities at its Santana project in Sonora.
  • Goldplay Exploration Ltd. compiled all the exploration information supporting that its San Marcial project in Sinaloa has a strong precious metal potential, beyond the already defined resource. Five known areas over a 6 km trend include: Nava, with trench sampling of up to 24 m @ 2.1 gpt Au; Chachalaca Micuines, where several rock chip samples returned 1m @ 1.0 – 5.0 gpt Au, and up to 0.9 m @ 13.3 gpt Au; Guacamayo, with a trench interval returning 24 m @ 219 gpt Ag, 0.25 gpt Au; Resource area, on which recent assays of drill holes identified new gold mineralisation outside the resource, with true width intervals (tw) of 1.0 m @ 2.5 gpt Au, 8.4 m @ 0.7 gpt Au, 12 m @ 0.2 gpt Au; Faisanes, where recently a drill hole interval of tw 0.9 m @ 204.6 gpt Au.

ON DEALS AND CORPORATE ISSUES

  • Discovery Metals Corp. filed an early warning report in respect of its holdings in Levon Resources Ltd., now beneficially owns or controls 117.1 M Levon Shares, representing all of the issued and outstanding Levon Shares. Discovery did not own or control, directly or indirectly, any shares in Levon prior to the Arrangement. (Puerto Rico, Coahuila; Cordero, Chihuahua).
  • Tamino Minerals Inc. informed that “The company is not planning to complete a REVERSE SPLIT at this moment and is not in the company’s plans to do this.” Furthermore stating that “no dilution is guaranted” as its latest DTCC Share Position Report shows that the company has 149.8 M common shares in the float. The company is also working on preparing financial statements in order to remove the stop sign to become current on the OTC Markets (El Volcan, Sonora).
  • Minera Alamos Inc. reported the retirement from the Board of Directors of Mr. Chester Millar. Mr Millar (born 1927) was involved in multiple heap leach mining projects in Mexico for several decades, and is included in the Canadian Mining Hall of Fame since 2008 (Note by editor.- our sincere thanks and respect to Chester Millar for his contributions to the mining industry in Mexico).
  • Mako Mining Corp. informed gold production from the Trinidad mine in Sinaloa is nearing completion. Mining operations ceased at the end of March, and most of the crushing plant has been moved to another project in Nicaragua. The company has been unsuccessful in receiving any proceeds from the claim due to the damages sustained at La Trinidad from Hurricane Willa in October 2018, and legal actions have commenced against the insurer provider and their reinsurers. “Discussions are underway with the mining contractor for La Trinidad and the Mexican government regarding significant payables still outstanding at our Mexican subsidiary that holds La Trinidad”. Mako believes that the company has properly structured its Mexican subsidiary in a way that these liabilities do not extend outside of Mexico, whereby any proceeds from the sale of the equipment, or success in the insurance litigation, will be for the benefit of Mako. Discussions are proceeding with the mining contractor with the goal of reaching a mutually acceptable settlement. Finally, all other assets held in Mexico are to be sold or liquidated on due course (Note of editor.- From the outside, and with no further information other than what’s on the press release, the remarks on the isolation of the parent company from any litigation while leaving the country with debts outstanding are the kind of practices that make foreign companies easy targets for interest groups on any country. In short, please do not do that).
  • Chesapeake Gold Corp. has exercised an option to re-purchase a one percent (1.0%) net smelter returns royalty (NSR) on its Metates Au-Ag-Zn project, Durango. The NSR was purchased from Wheaton Precious Metals Co., a subsidiary of Wheaton Precious Metals Corp. for US$9.0 M.

ON SOCIAL RESPONSIBILITY

  • Argonaut Gold Inc. engaged in multiple community projects during the second quarter of 2019. Received the nationally awarded Environmental Socially Responsible Company recognition at the El Castillo Complex for the seventh consecutive year, and held an opening ceremony of a new plant nursery at San Agustin (also in Durango). At La Colorada (Sonora), San Juan del Rio (Durango) and San Antonio (Baja California Sur) hosted a Children’s Day celebration. At La Colorada (Sonora) assisted, in collaboration with the State of Sonora Secretariat of Education and Culture, with the rehabilitation of educational facilities and donated computers, as well as hosted a women’s community workshop in La Colorada. Finally, hosted a health and wellness community workshop in La Paz, Baja California Sur.

Content like what you have just read can be seen at https://gambusinoprospector.com/ and at LinkedIn’s Mexico Mineral Exploration Group.

On the image below: quartz veinlets and quartz filed breccia in metamorphic rocks of a project in Oaxaca. Picture by Jorge Cirett

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