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

On the fourth week of April several companies announced advances on their properties, with Silver Crest, Gainey Capital, Agnico Eagle and Golden Minerals releasing news from their properties in Sonora, Chihuahua, Durango and Nayarit. Five companies, namely Capstone Mining, New Gold, Coeur Mining, Goldcorp and Agnico Eagle, released production results for the first quarter of 2016, disclosing data from their Mexican operations, whereas Mexus Gold announced some developments in Sonora. Seven companies released financing related news, which include private placements, at-the –market offerings, share subscriptions and loan facilities, with proceeds that go from $150K in the low end, to $30 million in the upper end. These companies are San Marcos Resources, Endeavour Silver, Kootenay Silver, Telson Resources, Arian Silver, Argonaut Gold and Cyprium Mining.

On Exploration

  • SilverCrest Metals Inc. released that a drilling campaign that begun in March has already six holes completed and awaiting results on its Las Chispas low sulfidation epithermal project in Sonora. Furthermore, tight sampling across the William Tell vein averaged 1.1 m @ 2.4 g/t Au and 174.9 g/t Ag, with individual assays reaching up to 24.5 g/t Au and 560 g/t Ag. For the next three months the company will focus in accessing historical underground workings to assess further high grade mineralization.
  • Gainey Capital Corp. plans to begin drilling in May at its El Colomo property in Nayarit.
  • Agnico Eagle Mines has begun exploration of the Madrono property, adjacent to its Pinos Altos and Creston Mascota operations in Chihuahua. At El Barqueno in Jalisco, 156 holes were drilled during the 1st quarter, for a total of 27.5 K meters. Results are as high as 9.2 m @ 4.0 g/t Au, 5.6 m @ 22.3 g/t Au, 7.9 m @ 4.4 g/t Au, 7.2 m @ 6.9 g/t Au and 12.0 m @ 7.3 g/t Au (all intervals estimated true width). Approximately 25 K meters of additional drilling is expected to be completed by the end of 2016.
  • Golden Minerals Co. has completed 3,500 m of drilling in 15 holes at San Luis del Cordero (Durango), counting with results for the first 12. Work to date has delineated three ore-shoots of potential economic interest, and additional 1,000 to 2,000 meters of further drilling are planned before an updated resource can be produced. At Santa Maria, Chihuahua, a 3,000 tonnes bulk sample of mineralized material grading 250 g/t Ag and 0.6 g/t Au was processed.
  • Azure Minerals Ltd. released assays for three more holes in its Alacran property in Sonora. The drillholes located on the northern part of the Loma Bonita ridge (NE from the Loma de Plata silver discovery) present intervals returning up to 7.5 m @ 1 g/t Au, 130 g/t Ag, and 200.2 m @ 0.09 g/t Au, 34 g/t Ag. A maiden resource estimate for the Mesa de Plata discovery is due for release in May.

On Mining

  • Mexus Gold US. has begun the leach pad construction at its Julio/Santa Elena mine in Sonora, where orogenic gold style mineralization is to be mined from a shear zone and a quartz vein.
  • Capstone Mining Corp. released 2016 first quarter results for its operations, including production of 3,660 tonnes of copper, 34 tonnes of lead, 812 tonnes of zinc, and 266.5 K ounces of silver at its Cozamin mine in Zacatecas. 243.9 K tonnes of ore were processed at a rate of 2,680 tonnes/day at 1.59 % Cu, 0.07 % Pb, 0.62 Zn and 48 g/t Ag; with recoveries of 94 %, 19 %, 53 % and 71 % respectively.
  • New Gold Inc. announced 2016 first quarter results, delivering 18.8 K Oz Au and 272.9 K Oz Ag at its San Pedro Mine in San Luis Potosi. The production was achieved at cash cost of $934 per Oz Au, or AISC $952 per Oz Au.
  • Coeur Mining Inc. released 2016 first quarter results for its operations, including production of 933 K Oz Ag and 14.7 K Oz Au at its Palmarejo mine in Chihuahua. Recoveries were 89% for silver and 92% for gold, from 246.5 K tons of ore milled. Underground grades were 4.21 Oz Ag per ton (126.7 g/t Ag) and 0.07 Oz Au per ton (2.1 g/t Au).
  • Goldcorp Inc. released 2016 first quarter results for its operations, including production from its Peñasquito mine in Zacatecas. At the site 10.87 million tonnes of ore and 35.1 million tonnes of waste were moved, with average grades for ore of 0.68 g/t Au, 22.5 g/t Ag, 0.22 % Pb and 0.53 % Zn, for a total production of 125 K Oz Au, 4.7 M Oz Ag, 29 M Lb Pb and 71.1 M Lb Zn. All-in sustaining cost was $1,004 per gold ounce.
  • Agnico Eagle Mines Ltd. reported first quarter 2016 results, including averaged $364 cash cost per ounce of gold on a by-product basis. The Pinos Altos mill (in Chihuahua)processed 4,932 tpd, and 74.3 K tonnes placed on the leach pad for a total production of 48.1 K Oz Au at a cash cost of $343 on a by-product basis. At Creston Mascota (satellite operation to Pinos Altos) 516 K tonnes of ore were placed on the leach pad, producing 11.5 K Oz Au at a total cash cost per ounce on a by-product basis of $460. At La India mine in Sonora, 1.4 million tonnes of ore were stacked on the leach pad, for a production of 28.2 K Oz Au at a total cash cost per ounce on a by-product basis of $360.

On Financing

  • San Marcos Resources Inc. closed its private placement announced on March 15th. The issuance was considerably over-subscribed, raising gross proceeds of $439 K (initial target: $150 K).
  • Endeavour Silver Corp. completed at-the-market (ATM) offering for net proceeds of US$16.0 million. The funds will be used to advance exploration and development of the Terronera project, expedite brownfields exploration and development programs at existing mines, and add to working capital.
  • Pan American Silver Corp. Pan American has exercised its second tranche option to subscribe for additional common shares of Kootenay Silver Inc. in order to maintain a ten percent (10%) ownership interest in Kootenay’s issued and outstanding shares, to be bought for CAD$1.553 M.
  • Telson Resources Inc. closed the non-brokered private placement originally announced on March 1st, for gross proceeds of $1.48 M.
  • Arian silver Corp. raised 700 K pounds before expenses, to be used on exploration of its properties in Zacatecas.
  • Argonaut Gold Inc. has completed arrangements for a $30 million revolving credit facility.
  • Cyprium Mining Corp. announced the closing of a private placement, for gross proceeds of $149.5 K, to be used on the continued development of the Potosi mining project in Chihuahua.

On Resources

  • Argonaut Gold Inc. presented an updated PEA using $1,200/ounce gold and $15/ounce silver and 536 K indicated AuEq Oz to be recovered at cash cost $648 per AuEq Oz. Envisaging the processing of 72.4 million tonnes of ore containing 745,000 ounces of gold with an average grade of 0.32 g/t and 24.5 M Oz Ag with an average grade of 10.6 g/t.

On Deals

  • Guerrero Ventures Inc. has informed Minaurum Gold Inc. that the required exploration expenditures and obligations of the underlying Biricu option agreement between Alamos Gold Inc. and Guerrero have been fulfilled. Guerrero Ventures Inc. has submitted all required documentation to Alamos Gold Inc. to exercise its option to acquire a 100-per-cent interest in the Biricu project in Guerrero State.

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

On the picture below, Dioritic dike cutting through Paleozoic sedimentary rocks in a small open pit at the Buenavista property, in central Sonora. The geologist in the picture is Guillermo Contreras.

Buenavista Dioritic dike, upper zone

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