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

During the fourth week of August, at least 17 press releases from companies working in Mexico were published, with one company producing second quarter financial reports, and one other reporting its first quarter. ON MEXICO NUMBERS, funds from the 2014 introduced mining tax commence to flow in Michoacan, Mexico continues as the top silver producer of the world, and gold production is decreasing during the first six months of 2016. ON EXPLORATION, Two companies presented exploration updates: Gold Resource reported more high-grade results of its brownfield exploration in Oaxaca, while Azure Minerals significantly extended by drilling the gold mineralized zone at its property in Sonora. ON MINING, Starcore presented second quarter 2016 production results for its first quarter, and Impact Silver presented its financial results for the second quarter. Cyprium released high-grade channel sample results from an oxide ore body. Timmins Gold presented a new mining plan for its Sonora property that would see operations until 2023. Defiance Silver assured land access in Zacatecas and Telson Resources started a bulk sampling program in Durango. ON FINANCING, One company completed a private placement for gross proceeds of $1.2 M and an additional non-brokered subscription for $300 K.  ON RESOURCES, Timmins Gold advanced numbers on a technical report still to be presented on its mine in Sonora. ON DEALS AND CORPORATE ISSUES, First Mining sold three properties to BRS Ventures. DYNA issued some statements regarding its legal battle with Goldgroup over ownership participation levels in a property in Sinaloa. Oremex changed name and Arian Silver extended a LOI on a tailings project in Zacatecas.

MEXICO NUMBERS

  •  Michoacan. Seven municipalities with mining activities will soon receive the approximately US$3.55 M dollars on mining taxes collected by the federal government during 2014 from the State: Lazaro Cardenas, Churumuco, Aquila, La Huacana, Arteaga, Chinicuila and Morelia. The resources are set to be applied mainly on infrastructure projects in the communities.
  • CAMIMEX (Camara Minera de Mexico). Mexico is the world leader in silver production for sixth year in a row, producing 191.5 M Oz of silver, 3.3% more than in 2014. The investment expected in the next few years in new mines and processing capacity expansion amounts to $854 M dollars.
  • Gold production by the main mining companies in Mexico decreased 15% in the first half of 2016. Goldcorp’s Peñasquito in Zacatecas presented a 65% production reduction, mainly due to an expected ore grade decline. Frisco produced 9% less gold, due to recovery issues at its El Coronel mine in Zacatecas. Other enterprises with decreased production include Primero Mining (36.7%), New Gold (28.8%), Argonaut Gold (22.6%) and Alamos Gold (4.3%). Companies that presented increased gold production during the first half of 2016 include Peñoles (22%), Grupo Mexico (36%), Pan American Silver (18%) and Agnico Eagle (0.1%).

ON EXPLORATION

  • Gold Resource Corp. reported more high-grade results from infill drilling of the Altagracia vein at the El Aguila project in Oaxaca. The drillholes intercepted multiple parallel veins, with results up to 8.2 m @ 9.1 g/t Au, 75 g/t Ag, 1.8% Cu, 3.4% Pb, 8.8% Zn; 4.9 m @ 3.65 g/t Au, 42 g/t Ag, 0.59% Cu, 1.2% Pb, 9.3% Zn; 7.9 m @ 6.9 g/t Au, 618 g/t Ag, 0.8% Cu, 1.7% Pb and 3.4% Zn; and 5 m @ 1.47 g/t Au, 105 g/t Ag, 1% Cu, 1% Pb and 6.4% Zn. The Switchback system contains multiple parallel high-grade polymetallic veins with more than 630 K tonnes of mineralized material, and is still open in all directions.
  • Azure Minerals Ltd. significantly extends the gold mineralized zone at the Loma Bonita target at its Alacran property in Sonora. Gold mineralization commences at or near surface, and is hosted in the oxide zone, over a length of 400 m and up to 150 m in width, with mineralization remaining open in all directions. Best drill intercepts include (core) 49.5 m @ 1.59 g/t Au, 29 g/t Ag; 111 m @ 0.81 g/t Au, 18 g/t Ag; (RC) 7.1 m @ 0.99 g/t Au, 50 g/t Ag; 33.9 m @ 0.41 g/t Au, 12 g/t Ag; and 14 m @ 1.59 g/t Au, 36 g/t Ag. Drilling at Mesa de Plata Norte has not produced encouraging mineralization and alteration intervals, and drilling has shifted to the Cerro San Simon and Cerro de Enmedio targets.

ON MINING

  • Starcore International Mines Ltd. reported production results for its first quarter 2016 (ended on July 13th), milling 66 K tonnes of ore @ 2.17 g/t Au and 16 g/t Ag, for the production of 4,207 Au Eq ounces at a recovery rate of 86.4% for gold and 45.7% for silver.
  • Cyprium Mining Corp. released results from 36 channel samples collected from an oxidized part of the Santo Domingo orebody (underground). The samples average 3 m @ 30.2% zinc, mainly as hemimorfite.
  • Timmins Gold Corp. presented an updated technical report in which mining is to proceed at its gold San Francisco mine in Sonora until 2023, with decreasing production from 90-100 K Oz/year to 45-50 K Oz gold per year by 2022.
  • Defiance Silver Corp. has signed a land access agreement for its San Acacio project in Zacatecas.
  • Telson Resources Inc. has initiated the collecting of a 2 K tonnes bulk sample from the El Creston area on its Tahuehueto property in Durango.
  • Impact Silver Inc. announced its financial results for the second quarter of 2016. Total tonnes milled were 45.1 K tonnes at an average mill feed of 180 g/t Ag, producing 236 K Oz silver. The company focus is in developing high grade ore shoots in a number of targets.

ON FINANCING

  • Marlin Gold Ltd. Completed its previously announced bought deal brokered private placement, for gross proceeds of $1.2 M. and an additional non-brokered subscription for $300 K.

ON RESOURCES

  • Timmins Gold Corp. advanced numbers on a new technical report (still to be filed) which includes updated mineral reserves and resources to the end of July for its San Francisco mine in Sonora. Reserves stand at 32.1 M tonnes @ 0.59 g/t Au, containing 635 K Oz Au, (or 76 M tonnes @ 0.65 g/t Au as resources, including reserves, for 1.1 M Oz Au), using a gold price of $1,250 per ounce. If a $1,350 price per ounce is utilized, the resources increase by almost 70%.

ON DEALS AND CORPORATE ISSUES

  • First Mining Finance Corp. signed an agreement with BRS Ventures Ltd. under which First Mining will sell all the issued and outstanding shares of Minera Terra Plata SA de CV. a subsidiary of First Mining, which owns the Peñasco Quemado (Sonora), La Frazada (Nayarit) and Pluton (Durango) properties.
  • Oremex Silver Inc. changed its name to Monarca Minerals (Tejamen, Durango).
  • Dyna Resource de Mexico SA de CV. Issued some statements regarding its San Jose de Gracia property in Sinaloa, and the legal dispute with Goldgroup on ownership participation levels. According to the release, DynaResource Inc. owns 80% of the outstanding share capital of Dyna Mexico, while Goldgroup is entitled to 20%.
  • Arian Silver Corp. Announced it has secured an extension on its exclusive right to evaluate the gold and silver tailings Noche Buena project in Zacatecas, held by Tierra Nueva Mining Ltd., to October 26th, 2016. A 2012 technical report on the tailings outlined an indicated mineral resource of 1 M tonnes @ 3 g/t Au and 55 g/t Ag, or about 100 K Oz Au and 1.7 M Oz Ag.

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 looking at rocks on a pillar of the quartz veinlet swarm mined at the Cerro Hueco workings in Durango.

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