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

During the third week of July, at least 20 press releases from companies working in Mexico were published, down from 34 the prior week, although more national news were available in the press. ON EXPLORATION, SilverCrest continues with the underground rehabilitation activities at its  property in Sonora. Cyprium Mining announced more channel assays from its mine in Chihuahua and Kootenay Silver announced a drill program is about to start in its property in Chihuahua.  ON MINING, Three companies presented second quarter results for 2016 and Fresnillo increased gold and silver production on the same lapse and FRSICO obtained environmental permits for one of its mining units. ON FINANCING, six companies announced cash calls and the opening, tranche completion or the closing of financing rounds and warrants exercise, for total gross proceeds of $34.9 million and CDN$12.25 million. Southern Silver is to trade on the OTCQB. ON DEALS. Timmins Gold and Candelaria completed the transaction on a property in Veracruz. ON MEXICO NEWS.  2015 was a year of mergers and acquisitions in Mexico, and production records were set for eight metals and minerals. Several silver projects are in the pipeline to production and growth records are analyzed for three Mexican majors. Fresnillo PLC has half of sizeable development projects in Mexico

ON EXPLORATION

  • SilverCrest Metals Inc. Announced an update on the underground rehabilitation program with additional assay results at its Las Chispas project in Sonora. SilverCrest’s initial focus is on the three veins with known production: the Las Chispas, William Tell and Babicanora. Channel sample results include multiple samples grading 1-11 g/t Au and 600-2,230 g/t Ag over 0.6 to 2.2 m widths. Composited samples average up to 2.4 g/t Au and 331 g/t Ag on 1.55 m width over continuous 35 m strike length and 1.1 m wide @ 1.5 g/t Au and 335 g/t Ag over a semi-continuous 90 meters strike length. Of 43 samples of backfill material being removed, the average is 2.45 g/t Au and 239 g/t Ag. Historic underground workings now stand at 11.5 km. To date 19 core holes have been drilled, to total approximately 5,600 meters, drilling results are planned to start coming during next August.
  • Cyprium Mining Corp. announced results of 71 more underground samples from the Tunel body. 26 samples of a 1.2 m wide flat lying manto averaged 238 g/t Ag, 5.3% Pb and 8% Zn. Samples from backfill material (muck, or rezaga) average 173 g/t Ag, 4.8% Pb and 3.9% Zn.
  •   Kootenay Silver Inc. announced drilling is to begin on early August on its La Cigarra Property in Chihuahua.

ON MINING

  • Sierra Metals Inc. reported production on the second quarter of 2016, which includes data from Bolivar and Cusi mines in Chihuahua. At Bolivar 236 K tonnes were processed at a rate of 2,700 tpd, running 1% Cu, 18.5 g/t Ag and 0.2 g/t Au, recoveries were 82.5% for Cu, 75.7% for Ag and 48% for Au, producing 4.28 M Lb copper, 106 K Oz silver and 743 Oz gold. At Cusi 52 K tonnes were processed, at a daily rate of 597 tonnes with grades of 181 g/t Ag, 0.23 g/t Ag, 1.2% Pb and 1.1% Zn, with recoveries of 69%, 57%, 81% and 38.5% for Ag, Au, Pb and Zn respectively, producing 211 K Oz silver, 217 Oz gold, 1.1 M Lb lead and 510 K Lb Zn.
  • Avino Silver & Gold Mines Ltd. reports 2016 second quarter results from its Avino and San Gonzalo mines in Durango. At Avino 1,242 meters of mine were developed, 97.7 K tonnes processed @ 64 g/t Ag, 0.26 g/t Au and 0.55% Cu, with recoveries of 85%, 60% and 90% respectively for silver, gold and copper. Producing 168.8 K Oz Ag, 492 Oz Au and 1 M Lb Cu. At San Gonzalo 24.8 K tonnes were mined, 33.9 K tonnes processed @ 237 g/t Ag and 1.3 g/t Au with recoveries of 82% and 71% respectively for silver and gold, producing 221.8 K Oz Ag and 1,017 Oz Au.
  • Santacruz Silver Mining Ltd. reported the second quarter 2016 operation results from the Rosario mine in San Luis Potosi, processing 26.4 K tonnes @ 0.18 g/t Au, 194 g/t Ag, 1% Pb and 3.5% Zn with recoveries of 66.7%, 89%, 92.1% and 89.2% Zn respectively. At Veta Grande, Zacatecas, development work is advancing at several veins, reaching a production of up to 400 tpd by the end of the quarter.
  • Fesnillo PLC. Produced 14.5% more silver and 19.6% more gold on the second quarter, and raised its gold production guidance form 775-790 K to 850-870 K Oz Au for 2016.
  • Minera Real de Angeles, part of FRISCO Group Obtained the environmental permits for placing tailing dams on its Porvenir mine in Aguascalientes.

 

ON FINANCING

  • Southern silver Exploration Corp. has been accepted for trading at the OTCQB.
  • Almaden Minerals Ltd. reports raising a total of $6.9 million by the exercise of warrants (Ixtaca, Puebla).
  • Mammoth Resources Corp. Reminds stake holders it still is under a Management Cease Trade Order (MCTO), for failing to file in time its year-end audited financial statements and accompanying Management Discussion and Analysis (Tenoriba, Chihuahua).
  • Cyprium Mining Corp. completed a private placement for gross proceeds of up to $195 K and the extension of the maturity date of various loans totaling US $813,750 (Potosi mine, Chihuahua).
  • Americas Silver Corp. announced the approbation for the conversion of “subscription receipts”. The Subscription Receipts were issued as part of a private placement for total gross proceeds of approximately C$11.6 million (San Rafael-Cosala, Sinaloa).
  • First Mining Finance Corp. increased its non-brokered private placement to raise gross proceeds of up to $27 million (six mines in Mexico).
  • Silver Bull Resources Inc. completed the previously announced private placement for aggregate gross proceeds of CDN$651 K (Sierra Mojada, Coahuila).
  • Minera Alamos Inc. approved the issuance of 4.35 million options at a price of $0.19 (Mulatos, Sonora).
  • Highvista Gold Inc. Entered an unsecured loan facility in an amount of up to $150 K. Highvista is involved in a reverse takeover and the change of business activities, exiting the mining business (Canasta Dorada, Sonora).

ON DEALS

  • Timmins Gold Corp. and Candelaria Mining Inc. announce the completion of the sale of the Caballo Blanco gold project in Veracruz. Candelaria has made a final payment of US$3.154 million and deferred a US$2.5 million payment to be made at the earlier occurrence of the Company receiving permits or June 24, 2017. Candelaria has also assumed US$5 million in liabilities in exchange for the project and all related rights and assets.

 

ON MEXICO NEWS

  • CAMIMEX (Camara Minera de Mexico). Reported several mergers and acquisitions that took place during 2015. Alamos Gold took Aurico Gold, Coeur Mining bought Paramount Gold & Silver, First Majestic Silver acquired SilverCrest Mines, Timmins took Newstrike and Capital and Southern Copper Corp. bought El Pilar project in Sonora. CAMIMEX (Camara Minera de Mexico). Reported that 7 out of 14 projects to initiate or expand gold production in Mexico are to be funded by Fresnillo PLC, in the period 2016 to 2021 (Source: Opportimes.com).
  • CAMIMEX (Camara Minera de Mexico). Silver production in Mexico grew 3.7% in 2015, but 84% if measured against 2008 production. In 2015 5,955 tonnes of silver (191.45 million Oz Ag) were produced, against 3,236 tonnes (104 million Oz Ag) in 2008. Three of the biggest developments in the pipline of silver production are San Julian in Chihuahua, Juanicipio in Zacatecas and Rey de Plata, Guerrero. Projects awaiting better commodity prices are La Preciosa and Pitarrila in Durango, El Gallo II in Sinaloa and Cordero in Chihuahua (Source: El Economista).
  • On the Mexican Stock Exchange (Bolsa Mexicana de Valores). During the second quarter of 2016 Peñoles, obtained an annual growth of 28.8% in income, 29.4% in EBITDA and 23% net profit; while FRISCO growth was 0.5% in revenue, 23% in EBITDA and 10.5% in profits; Grupo Mexico obtained a 28.8% growth in revenue, 2.5% in EBITDA, and (18.4%) in profits, while Minera Autlan registered a (10.3%), and (33.6%) fall in revenue and EBITDA, and a net loss of 28 million pesos (about US$1.5 million). A good part of these results for the companies can be attributed to recent changes in commodity prices (Source: Expansión).
  • Commodities production record. Mexico registered record production for eight metals and minerals in 2015, including gold, silver, copper, lead, zinc, wollastonite, magnesium sulfate and sodium sulfate. Although the production was greater in volume, the value fell 9.1% in dollar terms, reaching US$13,469 million, of which 34.1% was accrued by gold, 19.7% by copper and 18.5% by silver. (Source: El Economista).

 

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

On the table below, taken from on-line publication at Opportimes ( http://www.opportimes.com/inversiones/fresnillo-plc-posee-50-de-los-proyectos-de-mineria-de-oro-en-mexico/ ), the new gold operations or mine expansions to come in Mexico.

Fresnillo plc posee 50 de los proyectos de minería de oro en Mé3 - copia

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