Highlights for the third week of February 2016, Mineral Exploration in Mexico

On the third week of February, HECLA Mining Co, Panamerican Silver and Yamana released resource figures to the end of 2015, while Goldgroup Mining, Southern Silver Mining, Minera Alamos and Canarc Resource Corp announce financing rounds. Panamerican Silver Corp, Yamana Gold, Capstone Mining Corp and New Gold Corp presented their financial results for 2015, where cash cost per ounce is not so bad for the Mexican operations. Panamerican Silver entered into an agreement to option two projects; while Aura silver is increasing ownership in a project and Alianza Minerals sold its Mexican properties.

On Exploration. Orex Minerals announced the completion of its 17 holes two thousand meter diamond program at its Sandra Escobar property in Durango, and the follow-up program to continue drilling three thousand more meters in March.

On Resources. Hecla Mining Co released their mineral reserves for the end of 2015, same that include those at its San Sebastian mine in Durango. Consolidated reserves and resources amount to 4’527,000 tons @ 1.74 g/t Au and 219 g/t Ag, for a total of 253 K Oz Au and 32.1 M Oz Ag, with a few tens of thousands of tons of copper, lead and zinc. Panamerican Silver reported updated mineral reserves and resources, including its properties in Mexico: Dolores (Chihuahua), La Colorada (Zacatecas), Alamo Dorado (Sonora) and La Bolsa (Alamo Dorado). Of the 280 million ounces of silver classified as reserves, 149 are in Mexico. See the table below for the details. Yamana Gold Corp also released figures for its Mercedes mine that add up to 9.5 M tons @ 3.6 g/t Au and 38 g/t Ag, for a total of 1.1 M Oz Au and 11.5 M Oz Ag.

Panamerican Silver Resources, Table 1

 

 

On Financing. Goldgroup Mining Inc. is issuing $200,000 in shares to cover a debt to Oroco Resource Corp. Southern Silver Mining is planning to raise 600 K dollars by issuing 12 M shares. Minera Alamos Inc. announced the brokered private placement of up to 3 Million dollars, to advance the La Fortuna gold deposit in Durango and Los Verdes copper deposit in Sonora. Canarc Resource Corp arranged a non-brokered private placement to raise up to 2 million Canadian dollars. ON MINING. Panamerican Silver Corp presented its financial results for 2015, same that includes the production of 26.1 M Oz silver and 183.7 K Oz gold, at a cash cost of $9.70 per silver ounce or an AISCSOS (All-In Sustaining Costs per Silver Ounce Sold) of $14.92. Yamana Gold announced its results for 2015, including the production of 84,137 ounces of gold and 382,943 ounces of silver from its Mercedes mine in Sonora, at cash cost of $887 per ounce of gold and $7.91 per ounce of silver.  Capstone Mining Corp announced the financial results for 2015 with a net loss of 16 million. Producing 6,466 tons of copper concentrate at its Cozamin mine in Zacatecas, at cash cost of $1.75 per pound. New Gold Corp announced end of year 2015 results, with its Cerro San Pedro Mine in San Luis Potosi producing 105.5 K ounces of gold and 1’465,300 ounces of silver. Total cash cost per ounce was $865 and $879 all-in-sustaining-cost. Cerro San Pedro is reaching its end of mine stage, with only 13 K ounces of gold and 419 K ounces of silver as reserves.

On Properties. Panamerican Silver Corp entered in an option with Kootenay Silver Inc, to acquire 75% of a land position that includes the Promontorio and La Negra deposits. The option is a four year commitment valued at 8 milion dollars in cash/shares and 8 million in exploration activities, if Panamerican decides to do so. Aura Silver Resources entered in an agreement with Intrepid Mines Limited to increase its interest to a 100 percent in the Taviche project in Oaxaca. Alianza Minerals LTD sold its three Mexican properties to Alamdex Minerals LTD. The properties include Yago and Mezquites in Nayarit, and San Pedro in Jalisco.

In the image below, a fragment of core from the Cozamin mine in Zacatecas, showing nice epidote crystals lining a quartz veinlet.

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