During the second week of March several companies released news regarding drilling campaigns, mobilization, partial completion of drilling campaigns or new results from previous ones, for four projects in Sonora. Palamina announced some results from field work in its property in Hidalgo. Gold Resources released a new resource base, while Southern Silver and Avino Silver announced new financing rounds. US Antimony disclosed the mill testing being conducted in Central Mexico, while Gold Resource and Southern Silver released their 2015 numbers. Chesapeake released a new PFS on its Metates project in Durango, and Candente signed an option agreement regarding the tailings of its property in Mexico State.
On Exploration. Riverside Resources Inc has begun a double drill program on its Tajitos property In Sonora. A diamond rig is being used on the main outcropping targets, while an RC unit is testing for bedrock under gravels and testing magnetic and IP anomalies in El Tejo claim to the East. Palamina Corp reports the completion of a ground magnetic survey and a rockchip sampling campaign at its Santuario property in Hidalgo. They report several mag highs of interest, as well as gold up to 4.4 g/t gold in the Clemente area. Oceanus Resources Corp announced results of core intervals not previously sampled on its El Tigre property in Sonora. These results, merged with the previous ones, show longer and higher grade intervals than the reported before. The mineralized zone reaches up to 85 m in width and the best holes show up to 127 m @ 1.8 g/t Au and 27.5 g/t Ag, 139 m @ 0.94 g/t Au and 6.6 g/t Ag and 67.4 m @ 1.07 g/t Au and 44.7 g/t Ag. Azure Minerals LTD reported that four holes have been completed on its current drill program at its Alacran project in northern Sonora. The four holes are situated along the Loma Bonita ridge and are following-up geophysical and geochemical anomalies, both for shallow and deep mineralization targets. Assays are pending. Garibaldi Resources Corp announced the commencement of diamond drilling of the Rambo target in its 50 square km Rodadero project in central Sonora. San Marco Resources Inc and GlobeTrotters Resource Inc signed an agreement to jointly explore in Sonora, using the local knowledge and man power of the former and the ASTER processing capabilities of the latter.
On Resources. Gold Resources Corp released its resource base for the end of 2015, which include reserves of 1.6 M tons @ 2.1 g/t Au, 162 g/t Ag, 0.3 % Cu, 1.3 % Pb and 3.5 % Zn, as well as inferred resources of 0.8 M tons @ 1.4 g/t Au, 154 g/t Ag, 0.3 % Cu, 1.1 % Pb and 3.6 % Zn, for a total resource of 163 K Oz gold, 12.5 M Oz silver 10.9 M Lb Copper, 47.1 M Lb lead and 126.9 M Lb zinc.
On Financing. Southern Silver Exploration Corp closed the first tranche of its non-brokered financing, gathering $381 K dollars. Avino Silver and Gold Mines LTD announced a brokered public offering of shares, by means of which expects to net proceeds of US$ 744,000.
On Mining. US Antimony Corp reported on mill testing on its Los Juarez property in Queretaro. A shallow reconnaissance drilling program indicates a global average grade of 1.432 grams g/t gold, 75.2 g/t silver and 0.34% antimony. Gold Resource Corp released its 2015 results, which include the production of 29.6 K Oz Au, 2.5 M Oz Ag, 1.3 K tons Cu, 4.1 K tons Pb and 13.9 K tons Zn. The company milled 413 K tons during the year, for a 1,220 tons/ day average, from the Arista vein. McEwen Mining LTD reported the 2015 production for its El Gallo Mine in northern Sinaloa, with 63K Oz gold and 29.9 K Oz silver. Total cash costs and all-in sustaining cash costs were $440 and $581 per gold equivalent ounce, respectively. Their guidance for 2016 is to reach 51.5 K Oz Au and 37.5 K Oz Ag production.
On Development. Chesapeake Gold Corp reported an updated Pre-Feseability Study (PFS) on its Metates project in the sierra Madre of Durango. The plan is to start with a 30 K tons/day process to be escalated to 90 K tons/day by the fifth year, with a 27 year mine life plus 10 years of low grade stockpile ore process. The ore reserves hold 18.3 M Oz Au, 502 M Oz Ag and 4 B pounds Zn, and maximum production rate of 700K Oz Au/year, at a cash cost of US $628 Oz/Au.
In the image below, coarse grained milky quartz veinlets cutting through a shear zone. Tajitos, Sonora.
