Highlights on the first week of April 2016, Mineral Exploration in Mexico

On the first week of April, noteworthy news releases included only five announcements of results for the first quarter of the year. US Antimony, Capstone Mining, Endeavour Silver, Coeur Mining and GoGold Resources reported production from their mines in Queretaro, Zacatecas, Durango, Guanajuato and Chihuahua. To note and support is decision by Torex Gold of not falling for the covert extortion implicit in the illegal blockade of its Limon-Guajes mine in Guerrero, and temporarily shutting operations until the matter is resolved. As an industry we should now expect the state and federal governments to enforce the law. If there is any room for disagreement, it should be addressed by legal means, as in any civilized country. Cyprium Mining closed a round of financing, to be used for work in its Chihuahua properties.

On Financing

  • Cyprium Mining Corp. announced the closing of the first tranche of a private placement for gross proceeds of C$382 K dollars, to be used at its El Potosi property in Chihuahua.
  • Southern Silver Exploration Corp. announced the closing of a non-brokered private placement for gross proceeds of $600 K dollars, to be used at its properties El Oro in New Mexico, USA and Cerro Las Minitas in Durango Sate, Mexico.

On Mining

  • Torex Gold Resources Inc. informed a temporary suspension of activities at its El Limon-Guajes mine, until further notice, due to an illegal blockade. The unsubstantiated claims can be easily refuted with environment monitoring data and the company decided to suspend operations until the authorities re-establish law and order.
  • US Antimony Corp. announced it has begun mill testing with material dug from the Reynaldo pit at its Los Juarez property in Queretaro.
  • Capstone Mining Corp. announced production results for the first quarter, including data from its Cozamin mine in Zacatecas, where it produced 3,660 tonnes of copper, 812 tonnes of zinc, 34 tonnes of lead and over 266 K Oz of silver. The production was achieved by processing 243,900 tonnes of ore at a rate of 2,680 t/day with grades of 1.59% Cu, 0.62% Zn, 0.07% Pb and 48 g/t Ag. Recoveries are 94.4% for copper, 53.3% for zinc, 18.8% for lead and 70.9% for silver. Their guideline for 2016 aims to cash cost of $1.50 per Cu pound and Fully-loaded All-In cost fo $2.10 per Cu pound, including by-product credits.
  • Endeavour Silver Corp. reported production results for its three silver mines in Mexico, Guanacevi in Durango, and Bolañitos and El Cubo in Guanajuato. The total production of 1.5 M Oz Ag and 15,960 Oz Au in the third quarter was obtained by processing over 400K tonnes of ore, according to the following table:Endeavour Silver Q1 2016 table1
  • Coeur Mining Inc. announced first quarter production of 933 K ounces of silver and 14,668 ounces of gold at its Palmarejo mine in Chihuahua. 215.6K tonnes were mined underground and 35.2K on the surface, with the former averaging 130.9 g/t Ag and 2.17 g/t Au, while the latter averages 130.0 g/t Ag and 1.24 g/t Au. Total production at Palmarejo for the quarter was 933K ounces of silver and 14.6K ounces of gold, with recoveries of over 89% and 92% for silver and gold respectively. Production guidance for 2016 is 3.8 – 4.3 million silver ounces and 67,000 – 72,000 gold ounces.
  • GoGold Resources Inc. produced 335K AgEq ounces during the first quarter of2016, with cash cost averaging $6.78 per AgEq ounce.

In the image below, mudslides at Cerro La Cotorra, Tenochtitlan, Chiapas, as seen after the 2003 hurricane season.

Mudslide, Cerro La Cotorra SE2

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