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

During the fourth week of September, at least 19 press releases were published by companies working in Mexico. This is an almost 100% increment from last week count. ON MEXICO NUMBERS, Met-Mex Peñoles operates one of the biggest non-ferrous metallurgical complexes in the world. ON EXPLORATION, five companies reported exploration updates on their properties, which include ore grade open pit mineable drilling results from properties in Durango and Nayarit, initial exploration results in Sonora, continued exploration in a property with soil and rockchip sampling in Durango and the look for mineralization feeders in Coahuila. ON MINING, a fatality was reported in a mine in Durango, a property continues on development track to start production in October and a significant investment in a metallurgic complex continues.  ON FINANCING, one company announced a non-brokered private placement to raise gross proceeds of $1.5 M. ON DEALS AND CORPORATE ISSUES, Two companies closed the transfer of three properties in Nayarit, Sonora and Durango. Another company announced the acquisition of a new property in Sonora. One other company is to fund a drilling program in Durango, and increase its share in the property from 30% to 60% by doing so. One more company with a property in Sonora declined a proposed merger.

ON MEXICO NUMBERS

  • Met-Mex Peñoles operates one of the non-ferrous metallurgic complexes on the world, with a lead smelter, a lead-silver refinery, an electrolytic zinc refinery and a zinc alloys plant. Additionally, the company operates other plants to produce sulfuric acid, bismuth, antimony trioxide and liquid sulfur dioxide.

ON EXPLORATION

  • Minaurum Gold Inc. released assays from its initial rock chip sampling at the Quintera property in Sonora, with results like 2 m @ 90 g/t Ag; 2 m @ 139 g/t Ag, 0.14% Cu, 0.2% Pb, 0.5% Zn; 2 m @ 427 g/t Ag, 0.3% Cu, 0.3% Pb, 0.4% Zn; 2.5 m @ 232 g/t Ag, 0.6 % Cu, 1.2% Pb, 0.4% Zn and 1 m @ 1,020 g/t Ag, 1.1% Cu, 0.2% Pb, 0.5% Zn.
  • Orex Minerals Inc. and Canasil Resources Inc. released results from five more holes on the phase III diamond drill program on its Sandra Escobar project in Durango. The drill holes extend the Main Zone to the north 50 to 100 m with true width intervals like 35 m @ 106 g/t Ag; 46 m @ 118 g/t Ag; 31 m @ 88 g/t Ag; 29 m @ 40 g/t Ag and 32 m @ 40 g/t Ag. A mineralized zone below the Main Zone includes intercepts like 21 m @ 63 g/t Ag and 18 m @ 48 g/t Ag.
  • Southern Silver Exploration Corp. reported the advance in exploration at its Cerro Las Minitas project, Durango. To date 91 drill holes have been completed for 35,955 meters, with US$8.35 M spent on the property since 2011, defining over 20 M Oz Ag and significant amounts of lead and zinc. In June 2016 was reported the drill intercept of 30.4 m @ 107 g/t Ag, 0.4% Cu, 1.1% Pb and 2.3% Zn in a previously unrecognized deep extension to the Blind and El Sol deposits. The company continues with soil and rock sampling and re-evaluation of geophysical and geochemical surveys, to guide the next phase of drilling which will comprise up to 10,000 m.
  • Silver Bull Resources Inc. provided an exploration update at its Sierra Mojada project in Coahuila. During August and September, 590 line kilometer of airborne magnetic geophysics were completed over the main deposit, targeting structures at depth. The company is looking for source structures for the main deposit, hinted from underground workings and previous drill holes. Major drilling will conduct an initial 3,000 m, six to nine drill holes program to test the idea.
  • Gainey Capital Corp. announced assay results for its first hole on the La Nueva Victoria mineralized zone of its El Colomo property in Nayarit. The mineralized intercept starts at 5 m depth, with 70.85 m @ 0.65 g/t Au, 35 g/t Ag (1.14 g/t AuEq). This hole targeted the center of the silicified vein breccia zone, consisting of grey quartz veining and permeable lithic tuff, of the La Victoria structure at a dip of -60 degrees.

ON MINING

  • Argonaut Gold Inc. reported a fatality on its El Castillo mine, in Durango.
  • Mexus Gold US. announced that its Santa Elena mine is on track to start production on late October.
  • Peñoles informed that continues with its plans to invest US$ 327 M to expand the Zn plant in Torreon, Coahuila, in 120 K tonnes per year. This project involves the direct leaching of concentrates. The electrolysis plant is expected to start operations on the second half of 2017, and the leaching plant in the second quarter of 2018.

ON FINANCING

  • Source Exploration Corp. announced a non-brokered private placement which intends to raise up $1.5 M (Las Minas, Veracruz).

ON RESOURCES

  • Avino Silver & Gold Mines Ltd. completed a new 43-101 compliant resource estimate comprising the San Gonzalo mine, the Avino mine system and the oxide tailings. Total measured and indicated resources include 3.27 Mt @ 109 g/t Ag, 0.54 g/t Au, and 0.29% Cu, and inferred resources in 8.14 Mt @ 98 g/t Ag, 0.61 g/t Au and 0.41% Cu, for a total metallic content of 37.1 M Oz Ag, 215.9 K Oz Au and 42,850 tonnes of copper.

ON DEALS AND CORPORATE ISSUES

  • Silver One Resources Inc. closed the acquisition of a subsidiary of First Mining Finance Corp., which owns three Mexican properties: La Frazada, in Nayarit; Peñasco Quemado, in Sonora; and Pluton in Durango. La Frazada and Peñasco Quemado have historical resource estimates. Silver One issued to First Mining 6 M common shares of Silver One, representing 7.4% of the issued and outstanding shares of Silver One. A 2.5% NSR will apply, with Silver One being able to buy 1.5% of NSR for USD $ 1 M.
  • Mexus Gold US. announced they have a new property with their partner Mar Mar, the San Marco mine in Sonora. The property is located near Puerto Libertad, encompasses 970 acres and is said to have a non-compliant 43-101 resource of 100 K Oz Au.
  • Southern Silver Exploration Corp. owns 70% indirect interest in the Cerro Las Minitas property in Durango, and Electrum Global Holdings L.P. has earned a 30% indirect interest by spending US$3.05 M since May 2015. Electrum has informed that it will fund the required US$1.95 M to increase its indirect interest to 60%.
  • Bacanora Minerals LTD. announced the rebuttal of a proposed merger with Rare Earth Minerals PLC, which owns 19.8% of Bacanora. The proposal offered a 13.1% premium on the Sept. 29 closing price, which was regarded as a low bid.

Content like what you have just read can be seen at  LinkedIn’s Mexico Mineral Exploration Group.

On the picture below, low angle fault zone in strongly silicified rocks at the Puerta del Sol prospect in Sonora. The shear is 2 to 10 meters in width at this location, putting in contact the Aconchi batholith graniodioritic  lower plate with cretaceous volcanic rocks and Mid-Late Tertiary conglomerates in the upper plate.  Spotty gold and silver values (up to 1.7 g/t Au, 192 g/t Ag) on this silica pit.

img_3105-copia

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