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

The third week of April was deal time for companies, with Alix Resources and Lithium Australia; Pan American Silver, MacMillan Minerals and Maverix Metals; and Kootenay Silver and Northair Silver formalizing agreements, Mc Ewen Mining buying a NSR and Defiance Silver renegotiating a property payments schedule. Several companies presented results for the first quarter of 2016; these include Primero Mining, Excellon Resources, Gold Resources, Mc Ewen Mining and Sierra Metals. On financing, five companies raised funds during the past week: Minera Alamos, Silver Spruce, Great Panther Silver, Wealth Minerals and First Majestic Silver. First Mexican Gold announced that a 2014 technical report from one of its properties is not to be relied upon.

On Mining

  • Primero Mining Corp. reported first quarter results for its San Dimas operation in Durango, processing 149 Kt of ore at a grade of 4.1 g/t Au and 198 g/t Ag (1,639 t/day), for a total production of 19.5 K Oz Au and 920 K Oz Ag. Recovery rates were 99% for gold and 97 % for silver, at cash cost of $998 Oz/AuEq or AISC of $1,362 Oz Au. Production levels took a hit by the implementation of tougher safety procedures.
  • Excellon Resources Inc. reported first quarter results for its Platosa mine in Durango, with 14.7 Kt of ore milled at a grade of 483 g/t Ag, 4.8 % Pb and 6.1 % Zn, for a total production of 211.5 K Oz Ag, 1.3 M Lb Pb and 1.5 M Lb Zn. Recovery rates were 91.1 % for silver, 86.4 % lead and 79 % zinc. Mining operations are being facilitated by the long-term de-watering efforts by the company.
  • Gold Resources Corp. reports preliminary first quarter production of 6.4 K Oz Au, 434 K Oz Ag, 244 t Cu, 838 t Pb and 3,261 t Zn.
  • Mc Ewen Mining Inc. announced production highlights for the first quarter, which include 20.1 K Oz AuEq.
  • Sierra Metals Inc. announced results for the first quarter of 2016, which include production from El Cusi and Bolivar mines in Chihuahua. Bolívar processed 219 K tonnes of ore at a rate of 2,500 tonnes/day, at a grade of 1 % Cu, 18 g/t Ag and 0.27 g/t Au, with recoveries of 77%, 75% and 45% respectively, for a total production of 3.97 M Lb Cu, 97.4 K Oz Ag and 859 Oz Au. At the Cusi mine, 49.7 K tonnes of ore were processed, at a rate of 569 tonnes/day, running 174 g/t Ag, 0.29 g/t Au, 1.4% Pb and 1.4% Zn, and recoveries of 74% Ag, 66% Au, 85% Pb and 42% Zn. The total production was 206.8 K Oz Ag, 314 Oz Au, 1.3 M Lb of lead and 638 K Lb of zinc. This quarter was the first in which a zinc concentrate was produced at Cusi.

On Financing

  • Minera Alamos Inc. has closed the first tranche of its previously announced private placement for aggregate proceeds of $1.5 M, for use in the completion of the acquisition of the La Fortuna project in Durango.
  • Silver Spruce Resources Inc. announced the closing of a non-brokered private placement, raising total proceedings of $410 K.
  • Great Panther Silver Ltd. announced the at-the-market offering of up to US$10 Million.
  • Wealth Minerals Ltd. closed a non-brokered private placement for total proceeds of $1 M.
  • First Majestic Silver Corp. announced a C$50 Million bought deal financing.

On Resources

  • First Mexican Gold Corp. is giving notice that the technical report and the resource estimate on its Guadalupe property in Sinaloa, dated October 28, 2014, is not compliant with NI-43-101 guidelines, and should not be relied upon.

On Deals

  • Alix Resources Corp. and Lithium Australia announce the definitive agreement to jointly explore and develop the Elektra lithium project in Sonora.
  • Pan American Silver Corp., MacMillan Minerals Inc and Maverix Metals Inc. have made an arrangement to form a new company focused on metal royalties and streaming. The 13 property portfolio includes the gold production from the La Colorada mine in Zacatecas, 1.5 % NSR from the San José mine in Oaxaca, 5 % of gold production from La Bolsa and 2 % NSR from La Jojoba project, both in Sonora, and 1.5 % NSR from the Taviche project in Oaxaca.
  • Mc Ewen Mining Inc. announced the acquisition of the 3.5 % royalty on the El Gallo mine for a total of $ 6.25 million.
  • Kootenay Silver Inc. and Northair Silver Corp. completed their business combination.
  • Defiance Silver Corp. has renegotiated its San Acacio silver project purchase agreement, postponing payments that were due in 2016, to September 2017, for a total of US$300 K.

Content like what you have just read can be seen at LinkedIn’s Mexico Mineral Exploration Group.

On the picture below, texture in a quartz vein, interpreted as evidence for seismic pumping at this orogenic gold style property, Tajitos, Sonora.

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