Highlights on the Second Week of September 2016, Mineral Exploration in Mexico

During the second week of September, at least 22 press releases were published by companies working in Mexico. ON EXPLORATION, Exploration seems to be picking up, reflecting the financing rounds of the earlier part of the year. Nine companies reported exploration work, including five reporting drilling results in Durango, Sonora and Puebla properties. Riverside Resources is doing soil sampling and ground magnetics in Sonora; Radius staked and then optioned lithium properties in Chihuahua and Coahuila; Minaurum optioned a property in Sonora and San Marco Resources probed there is still interesting open ground by staking three different properties in Sonora. ON MINING, GoGold is to build a processing plant at its Santa Gertrudis property in Sonora, Americas Silver is to begin development at its San Rafael mine in Sinaloa and Starcore International reported first quarter 2017 results.  ON FINANCING, Three companies announced closed non-brokered private placements for gross proceeds of $6.1 M. ON RESOURCES; Alamos Gold released an updated mineral resource estimate for La Yaqui project, in Sonora. ON DEALS AND CORPORATE ISSUES, Endeavour Silver entered into an agreement with Silver Standard to obtain 100% interest on several properties in Chihuahua.

ON EXPLORATION

  • Orex Minerals Inc. released results from the III phase drilling campaign at its Sandra Escobar property in Durango. True width intercepts from two holes in the Main Zone include 46 m @ 113 g/t Ag and 56 m @ 114 g/t Ag, while intercepts from the Burro Zone, 300 m to the SW include 24 m @ 144 g/t Ag, 4.5 m @ 51 g/t Ag and 8.2 m @ 32 g/t Ag, in three different holes. A second low-grade deeper horizon of permeable horizon tuffs similar to the Main Zone in texture has been identified stratigraphically below the Main Zone.
  • Alamos Gold Inc. continues exploration at its La Yaqui and Cerro Pelón projects in Sonora. At La Yaqui a new resource base was announced (see below), whilst only 25% of the 1 km by 0.9 km alteration anomaly has been explored. Currently 8 rigs are drilling, with an additional 10 K meters planned by year end. Given the good results obtained at Cerro Pelon, with a number of new targets identified, the submission of the Environmental Impact Assessment (Manifiesto de Impacto Ambiental) has been postponed while the size of the system is better constrained by exploration and drilling.
  • Riverside Resources Inc. announced work has begun by partner Centerra Gold Inc. at its Glor gold project in Sonora. Activities to follow include soil sampling and a 136 line-km of ground magnetics program. Next on line are 20 line-kms of induced polarization surveying and 1,800 m of channel sampling. Drill targeting will be done with the information gathered. The average for 155 samples collected at this orogenic style mineralization is 0.51 g/t Au, with a peak of 18.9 g/t Au.
  • Radius Gold Inc. staked four brine projects in Chihuahua and Coahuila, covering 37 K hectares (370 Square kilometers).
  • Minaurum Gold Inc. optioned the La Quintera silver project in the Alamos district in Sonora. The property covers 4,698 has, includes the La Quintera, La Aduana and Minas Nuevas old mines. The district “…is estimated to have produced more than 120 Moz of silver from about 1680 to the early 1900s. Vein widths average 4m but locally range up to 20m. The primary target vein has a strike length of 3.5km and the entire vein system measures more than 7 km long.”. The six-year deal involves a total of $2.6 M (mostly on production start), 6 M shares and a 2% NSR.
  • Almaden Minerals Ltd. released assay results from three holes that intercepted mineralization outside the PEA defined pit at its Ixtaca property in Puebla. The drillholes present multiple mineralized intervals, like 22.5 m @ 1.1 g/t Au, 19 g/t Ag and 15 m @ 0.5 g/t Au and 72 g/t Ag in one hole and 5.1 m @ 2.4 g/t Au, 274 g/t Ag; 20.7 m @ 0.2 g/t Au, 88.6 g/t Ag; 33.7 m @ 0.8 g/t Au, 77 g/t Ag and 13 m @ 1.9 g/t Au, 43 g/t Ag in the second hole. Work continues to advance the pre-feasibility (PFS) study and an environmental permit application.
  • San Marco Resources Inc. announced the staking of three properties in Sonora, on targets generated with GlobeTrotters Resource Corp. Three areas are in north and northeastern Sonora, covering 25,967 has under the projects name of La Caridad Este, Agua Zarca, and La Pitahaya. The three properties show large alteration zones, some with high gold stream sediment or rock chip results. The company is also participating on the staking of four other properties under the “lottery” system in Mexico, same that still have to be awarded.
  • Oceanus Resources Corp. reported results from seven core holes completed during July and August in its El Tigre property in Sonora. Most of the holes were on the central part of the 1.6 km long deposit, with true width intervals estimated to be 75–90% of core length. Significant intersections reported:121.1 m @ 1 g/t Au, 27 g/t Ag (including 19.7 m @ 2.6 g/t Au, 40 g/t Ag); 89.7 m @ 0.6 g/t Au, 30 g/t Ag; 6.2 m @ 1.2 g/t Au, 37 g/t Ag and 63.8 m @ 0.67 g/t Au, 11.2 g/t Ag; 79.2 m @ 0.8 g/t Au, 16 g/t Ag; 61.6 m @ 0.49 g/t Au, 12 g/t Ag.
  • SilverCrest Metals Inc. released results from 5 more holes from its Las Chispas property in Sonora. Significant true width intervals in Las Chispas vein include 1 m @ 2.3 g/t Au, 306 g/t Ag; 1 m 5 g/t Au, 706 g/t Ag; 1 m @ 1 g/t Au, 143 g/t Ag. Adjacent Footwall vein results include 1.0 m @ 0.9 g/t Au, 113 g/t Ag and 3 m @ 0.3 g/t Au, 91 g/t Ag. A non-resource 43-101 reported is expected to be finished on Q4 2016, and the first resource estimation by the first half of 2017.

ON MINING

  • GoGold Resources Inc. is going ahead with the construction of a cyanide vat leaching plant at its Santa Gertrudis property in Sonora, instead of the heap leach process envisaged on the 2014 PEA. The company expects a 4 to 6 months development schedule budgeted at $10 M, starting on October 2016, to initiate with a 2 K tpd production.
  • GoGold Resources Inc. work at its Parral (Chihuahua) tailings operations has been negatively affected by higher than average rains. GoGold has been mining high grade ore at its Santa Gertrudis mine in Sonora to make up for the loss in production.
  • Americas Silver Corp. has approved construction at its San Rafael Zn-Pb-Ag project in the Cosalá district in Sinaloa. The project will utilize the company’s existing infrastructure at its Cosalá operations, with a $20 M budget, and expecting to see commercial production by Q3 2017.
  • DynaResource Inc. reported 4,460 tons processed during August, at an average grade of 11.75 g/t Au. The pilot mill is operating at 173.5 tonnes per day. The company also stated its production cost has been $592 per gold ounce for the first six months of the year.
  • Starcore International Inc. reported its first quarter 2017, which include the production of 4.2 K Oz Au and 27.7 K Oz Ag, milling 66.1 K tonnes @ 2.17 g/t Au, 16.2 g/t Ag, with 86% and 46% recoveries for gold and silver respectively, and an operating cost of $853 per AuEq ounce. Cash and short-term investment is $8 M.

ON FINANCING

  • Oceanus Resources Corp. closed a non-brokered private placement to raise gross proceeds of $1.75 M (El Tigre, Sonora).
  • Wealth Minerals Ltd. closed a non-brokered private placement for gross proceeds of $2.56 M (Coronado, Chihuahua).
  • Prospero Silver Corp. closed the non-brokered private placement previously announced, for gross proceeds of $1.85 M (Baborigame, Chihuahua, other projects in Chihuahua, Durango, Hidalgo).

ON RESOURCES

  • Alamos Gold Inc. reported a an updated 43-101 compliant mineral resource estimate for its La Yaqui project in Sonora, where reserves and resources combined now stand at 536 K Oz Au, a 93% increase since December of last year. The feat was accomplished by drilling 27,201 m in 132 holes. Mineral reserves and resources at La Yaqui are oxide and amenable to heap leaching based on preliminary metallurgical testing. Initial production is expected by mid-2017.

ON DEALS AND CORPORATE ISSUES

  • Endeavour Silver Corp. entered into a definitive agreement with Silver Standard Resources Inc. to acquire 100% interest in the “Parral properties”, Veta Colorada, La Palmilla and San Patricio. Endeavour will pay $6.0 M of shares, $200 K of shares by every million silver ounces on a 43-101 report to be prepared and 1% NSR. Endeavour is to invest a minimum of $2 M on a two year period, and produce the resource estimate within one more year. The properties include veins traceable for over 8 km, with Veta Colorada being up to 40 m thick. Historic resources for Veta Colorada are 32 M Oz Ag in 4 Mt @ 248 g/t Ag, and 15 M Oz Ag in 1.5 Mt @ 300 g/t Ag in the Remedio-Argentina vein. IMSSA worked the properties until 1990.
  • Radius Gold Inc. optioned three recently staked lithium properties in Chihuahua and Coahuila to Advantage Lithium Corp.

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, argillitized and silicified felsic tuffs with epithermal quartz veining in Villa de Reyes, San Luis Potosi. A post-mineralization ignimbrite unit can be seen on the background.

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