Highlights on the second week of August 2016, Mineral Exploration in Mexico

During the second week of August, at least 30 press releases from companies working in Mexico were published, with several companies producing second quarter operational and financial reports, which provide a good glimpse on the improving conditions of the industry. ON EXPLORATION, Kootenay started a drilling campaign on its property in Chihuahua, while Alamadex, Southern Silver and Golden Minerals released results of its drilling in Veracruz, Durango and Chihuahua. Alamos Gold continues to show impressive results from its brownfield exploration in Sonora. ON MINING, Excellon, First Majestic, Alamos Gold, GoGold, Aura Minerals, Torex Gold, Golden Minerals, Americas Silver, Argonaut Gold and Pan American Silver presented second quarter 2016 operational and financial results. Mexus gold started blasting at its JV operation in Sonora and Avino Silver began the construction of a new tailings facility in Durango. ON FINANCING, five companies announced the closing, opening or oversubscription of financing rounds, for total gross proceeds of $47.9 million ON DEALS. Canuc and Santa Rosa Silver agreed to a reverse take-over, Electrum Holdings entered an earn-in agreement with Golden Minerals on a property in Guanajuato. Golden Tag Resources bought the remaining 50% of a project in Durango from Golden Minerals. ON PROJECT DEVELOPMENT. Almaden continues with PFS work in its property in Puebla, Peñoles is to invest a sizable amount in the development of a new mine in Guerrero and Timmins Gold has initiated preconstruction activities on its Guerrero property.

ON EXPLORATION

  • Almadex Minerals Ltd. reported partial results on the first hole drilled at the North Zone since 2008, at its El Cobre property in Veracruz. The intercepts include intense quartz stockwork veining, potassic alteration and copper-gold mineralization: 163.5 m @ 0.68 g/t Au, 0.29% Cu, including 67.5 m @ 1.12 g/t Au, 0.4% Cu.
  • Southern Silver Exploration Corp. reported results from the 2016 drilling campaign at its Cerro Las Minitas property in Durango. The drilling identified a new mineralized extension and continuity of the contact skarn. True width (TW) Intercepts include up to 9.4 m @ 30 g/t Ag, 0.7% Cu, 0.1% Pb, 0.2% Zn and 1.3m @ 41 g/t Ag, 1.18 g/t Au, 1.1% Cu, 7.7% Zn.
  • Kootenay Silver Inc. announced drilling is underway at its La Cigarra property in Chihuahua, aiming to test the RAM target and determining continuity of high-grade trends within the resource.
  • Alamos Gold Inc. continues brownfield exploration at Mulatos, Sonora, with a budget that was increased by 60% back in May. At La Yaqui over 17,500 meters have been drilled on 89 holes during the second quarter, with good intercepts expanding the known ore zones, still open for expansion. Good results include (~90% true width) 30.9 m @ 2.2 g/t Au and 35.6 m @ 2.63 g/t Au in the same hole, 65.5m @ 3.23 g/t Au, 67.5 m @ 2.83 g/t Au, 50.3 m @ 2.22 g/t Au, 47.3 m @ 3.79 g/t Au and more. An increase in mineral resources is expected. At Cerro Pelon 39 holes for 6,700 m of drilling were completed during the second quarter, results from these holes include 47.3 m @ 7.79 g/t Au and 41.2 m @ 0.92 g/t Au. Several other areas of alteration are being targeted with geophysics and drilling.
  • Golden Minerals Co. presented drilling results on its Santa Maria property in Chihuahua, with true width intervals including 4.2 m @ 0.96 g/t Au, 326 g/t Ag, 2.4 m @ 0.81 g/t Au, 456 g/t Ag, 1 m @ 5.79 g/t Au, 991 g/t Ag and 1.3 m @ 1.45 g/t Au, 1,221 g/t Ag. The program included 2,200 m of drilling in 24 holes. The company also started drilling during June its Rodeo property in Durango. At San Luis del Cordero, a 20 hole 4,600 m drilling program failed to expand the resource estimate, and the property is likely to be returned to the vendor.

ON MINING

  • Excellon Resources Inc. reported financial results for the second quarter 2016, with 13,929 tonnes mined, 14,453 tonnes milled @ 536 g/t Ag, 5.1% Pb and 6.3 % Zn. Recoveries stood at 90%, 81.2% and 78.7% for silver, lead and zinc respectively, producing 209 K Oz Ag, 1.26 M Lb lead and 1.32 M Lb zinc, at cash cost $9.81/ Oz Ag and adjusted all-in sustaining cost of $15.27, excluding capital expending on the mine optimization plan (Platosa, Durango). Cash, account receivables and marketable securities totaled $7.5 M, not including July’s bought deal financing CAD$15.2 M.
  • First Majestic Silver Corp. reported 2016 second quarter financial results, which include the processing of 798 K tonnes of ore (six mines in Mexico) to produce 2.84 M Oz Ag, or  68 M Oz AgEq at cash cost per ounce of $6.41 and all-in sustaining cost of $10.97 per silver ounce. Cash and cash equivalents totaled $108.2 million at the end of the quarter. Increased 2016 capital budget by $20.9 million to expand the underground development and exploration program, including over 46,000 meters of additional diamond drilling.
  • Mexus Gold US and Mar Mar Holdings started blasting at its JV project Santa Elena in Sonora.
  • Alamos Gold Inc. reports second quarter 2016 results, which include the production of 33 K Oz Au at Mulatos and 16.8 K Oz Au at El Chanate, both mines in Sonora. Cash cost per Au Oz was $757 and $907 and all-in sustaining cost $883 and $931 per gold ounce respectively for Mulatos and El Chanate. Reported cash and cash equivalents, and available-for-sale securities of $284.9 million.
  • Avino Silver & Gold Mines Ltd. has commenced the construction of a new tailings storage facility at its Avino mine in Durango.
  • GoGold Resources Inc. released financial results for the second quarter which includes the stacking of 631 K tonnes of tailings and production of 191.6 K Oz Ag and 2,218 Oz Au at all-in sustaining cost $10.14 per silver equivalent ounce (Parral tailings project, Chihuahua).
  • DynaResource Inc. processed 4.6 K tonnes @ 12.75 g/t Au at its San Jose de Gracia property in Sinaloa during July. The pilot mill is running at 164 tpd.
  • Aura Minerals Inc. announced second quarter results 2016, which include budgeting $1.4 M for care and maintenance of its Aranzazu mine in Zacatecas on the second half of 2016.
  • Torex Gold Resources Inc. released operational and financial results for the second quarter 2016. The Guajes-Limon plant in Guerrero operated at 10,168 tpd, gold recovery standing at 82%, with 8% more tonnes and 17% higher grade than the modelling provided. At an average grade of 3.15 g/t gold, 83.2 K Oz Au were produced at cash cost of $571 and all-in sustaining cost of $754 per gold ounce. Cash balance totaled $102 M.
  • Golden Minerals Co. reported second quarter results for 2016, with $3.9 million in cash. Budgeted for the second half of the year is the spending of $1.1 in exploration at Santa Maria and Rodeo projects, in Chihuahua and Durango respectively, and $0.7 M for care and maintenance on its Velardeña unit in Durango.
  • Great Panther Silver Ltd. resumed operations at its Topia mine in Durango, after last week’s untimely death of its mine manager.
  • Americas Silver Corp. reported second quarter 2016 financial and operational results. The company has operations in Cosalá, Sinaloa. Silver production was 16% lower than the same quarter of 2015, due to a ground movement at its Nuestra Señora mine, solved before the end of the quarter. The company raised C$31.6 M during June, having at the quarter’s end adjusted cash balance of $25.2 million and net working capital of $26.5 M.
  • Argonaut Gold Inc. announced operational and financial results for the second quarter 2016, which include 77 K tpd moved, with 2.77 M tonnes of ore @ 0.41 g/t Au to produce 15,195 Oz Au at El Castillo, Durango, and 52.3 K tpd moved, with 1.19 M tonnes of ore @ 0.52 g/t Au to produce 12,282 Oz Au and 38.8 K Oz Ag produced at La Colorada mine, Sonora. Cash balance at the end of the quarter was $54.1 M.
  • Pan American Silver Corp. reported results for the second quarter 2016, having produced 1.37 M Oz Ag and 670 K Oz Au at La Colorada, Zacatecas, 0.97 M Oz Ag and 25.26 K Oz Au at Dolores, Chihuahua and 0.53 M Oz Ag and 230 Oz Au at Alamo Dorado, Sonora. Cash costs stood at $7.66, ($0.64) and $13.54 per silver ounce at La Colorada, Dolores and Alamo Dorado respectively. At the end of June, cash and cash equivalents and short-term investment balances were $204.2 million.
  • SilverCrest Metals Inc. announced that CEO Eric Fier has taken a partial leave of absence due to a medical procedure which he is undergoing this week. Dunham L. Craig has been appointed interim CEO. We wish Eric Fier a fast recovery.

ON FINANCING

  • Vista Gold Corp. closed its previously announced public offering for gross proceeds of US$17.3 million (non-core Mexico assets. Guadalupe de Los Reyes, Sinaloa).
  • First Mining Finance Corp. completed the previously announced non-brokered private placement, raising proceeds of $27 M (several properties, Sonora, Durango, Nayarit, Oaxaca).
  • Palamina Corp. has closed a non-brokered private placement, for gross proceeds of $1.2 million (Santuario, Hidalgo).
  • Prospero Silver Corp. announced the undertaking of a non-brokered private placement for gross proceeds of up to $1.65 M. Later in the week the financing was increased to $1.85 M (Baborigame, Chihuahua).
  • Silver Spruce Resources Inc. announces the closing of a non-brokered private placement, which raised $549.7 K (Pino de Plata, Chihuahua).

ON DEALS

  • Canuc Resources Corp. and Santa Rosa Silver Mining Corp. have entered a definitive business combination agreement, that if completed would constitute a reverse take-over transaction (Santa Rosa, Sonora).
  • Golden Minerals Co. entered in an agreement with Electrum Global Holdings LP., by which Electrum can earn-in participation on Golden’s Celaya property in Guanajuato. The deal involves a $200 K payment and $500 K investment during the first year.
  • Golden Minerals Co. sold on August 2nd its 50% interest on the San Diego property, Durango, to Golden Tag Resources Ltd., the party holding the other 50% interest in the property. Golden received $380 K in cash and 2.5 M shares of Golden Tag, and a 2% NSR.

ON PROJECT DEVELOPMENT

  • Almaden Minerals Ltd. continues to find mineralization outside the PEA limits on its Tuligtic project in Puebla. Drilling results include 70.43 m @ 0.44 g/t gold and 53 g/t Ag, including 1 m @ 6.2 g/t Au and 1,250 g/t Ag; 13 m @ 0.75 g/t Au, 68 g/t Ag and 4.3 m @ 0.64 g/t Au, 93 g/t Ag.
  • Industrias Peñoles SAB de CV. is to invest US$296 M in the development of its Rey de Plata mine in Guerrero, aiming to start production on the second half of 2018.
  • Timmins Gold Corp. announced work is in line to produce a pre-feasibility study (PFS) on its Ana Paula property in Guerrero. Pre-construction activities will commence immediately, and will include feasibility work, infill drilling, metallurgical test‐work, and environmental baseline and permitting activities. With a $9.2 million budget, the Company expects the PFS to be complete by Q3 2017 and have all permits required to start construction by Q1 2018.

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, geologist Guillermo Contreras sampling the low angle mineralized fault at La Casita Colorada prospect in Sonora.

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