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

During the second week of October, at least 29 press releases were published by companies working in Mexico, including eight third quarter production releases. ON MEXICO NUMBERS AND NEWS, In Mexico the mining industry provides 4% of the GDP, and employs a large workforce. The ministers of Foreign Affairs of Canada and Mexico met and agreed on a work plan to address issues on the mining industry.  ON EXPLORATION, eight companies reported exploration updates on their properties, which include a large drilling program with high grade results in Chihuahua. In Sonora the discovery of lithium rich clays, and the intention to use RC rigs for its exploration in one project; copper soil and magnetic anomalies defined in another project, and gold in soils and rock chip sampling in a property in the Sonoran desert. In Puebla, drilling continues to intersect high grade values outside of a PEA pit limit, while in Sinaloa a several kilometers long trend hosts three target areas of which at least one has provided exciting drill intercepts. In Nayarit a drill program is to target a long and wide zone that portrays high grade rockchip sample results on surface. ON MINING, eight companies reported third quarter production results, providing a useful insight on output numbers. On other matters, a company resumed operations in Zacatecas, while other reported a fatality on a mine in the same State. In Sonora, a company stated it’s near term production target, while in Oaxaca a company was granted the final permit to start mining in a new area. A mine in Chihuahua announced the delay of starting the second phase of operations and in Baja California Sur another mine is trying to overcome low underground throughput and low metallurgical recoveries. ON RESOURCES, a company filed on SEDAR a previously released resource estimation from its property in Durango.  ON FINANCING, two companies entered on a subscription agreement worth $2.53 M, another one closed the first tranche of a private placement for $0.2 M and a third one completed a non-brokered private placement of $4.53 M.  ON DEALS AND CORPORATE ISSUES, one company gained the right to appoint officials in the other’s board, one more completed requirements with the SEC to resume trading and a third one announced that share consolidation and name change will be effective on the third week of October.


  • In Mexico the mining industry provides 4% of the GDP, being the fourth largest source of foreign currency, after the automotive, electronics and oil industries. In 2015 the mining industry sustained more than 350 thousand direct employees, and more than 1.6 M indirect jobs.
  • On Canada investment in Mexico. The Ministers of Foreign Affairs of Canada and Mexico, Stephane Dion and Claudia Ruiz met on October 12th, and agreed on a work plan to address the problems that affect the mining companies, of which organized crime and illegal blockades receive the most publicity. Canadian firms provide 70% of the direct foreign investment in mining in Mexico, according to S. Dion.


  • Coeur Mining Inc. expects to invest $30-$34 M in exploration (in Mexico, Alaska and Nevada) during 2016, which is an 82% increase on the 2015 exploration budget. The focus of exploration is on upgrading resources to reserves, and the discovery of new high-grade resources near existing infrastructure. At Palmarejo 141 holes have been drilled (29,564 m) from underground and surface at the Independencia, Guadalupe and Los Bancos veins. Recent true width intercepts include 4.39 m @ 2,883 g/t Ag, 39.1 g/t Au and 2.1 m @ 811 g/t Ag, 10.3 g/t Au on the same hole at Independencia, and 5.0 m @ 520 g/t Ag, 46.3 g/t Au at Guadalupe. The average grades at Palmarejo at year end 2015 were 169 g/t Ag and 2.61 g/t Au.
  • Alix Resources Corp. and Lithium Australia NL. reported a new lithium-rich clay discovery near its Elektra concession in Sonora. The mineralization has been traced for approximately one kilometer, and staked by a mining concession application named Agua Fria. Reconnaissance sampling returned 347,  353,  880,  950 and 1,000 ppm lithium, with thicknesses of the mineralized clays of 20 to 30 meters.
  • Evrim Resources Corp. defined an area  1,000 meter x 600 meter of propylitic to potassic altered volcanic rocks with a 600 meter x 500 meter copper soil anomaly (>100 ppm Cu). Chlorite-K-feldspar-pyrite-chalcopyrite veinlets and magnetite-chalcopyrite are present. Ground magnetics identified a 400 x 400 meter donut-shaped anomaly coincident with the anomalous soil geochemistry.
  • Colibri Resource Corp. identified a NE trending structure within its Evelyn project in Sonora. Thirteen samples collected along 110 m of the structure returned an average of 9.2 g/t Au. A previously reported 703 samples strong soil survey had results of up to 2.2 g/t Au, with 10% of the assays being greater than 50 ppb Au. A detailed mapping and sampling campaign is to follow.
  • Almaden Minerals Ltd. released results from drilling at its Ixtaca development project in Puebla. Intercepts outside and inside the amended PEA pit include 14.4 m @ 3.6 g/t Au, 147 g/t Ag; 24.2 m @ 2.3 g/t Au, 98 g/t Ag; 18.5 m @ 2 g/t Au, 50 g/t Ag and 75 m @ 0.67 g/t Au, 19 g/t Ag. This mineralization confirms the presence of additional zones of veining adjacent to the Ixtaca zone.
  • Mc Ewen Mining Inc. continues exploration drilling in the El Gallo district, concentrating on three prospective areas, Encuentro South, Las Milpas and Twin Domes, which are within a 7 km long prospective corridor. 8,980 m in 51 RC holes have been drilled, of which 42 have been at Encuentro South. This target has produced the following intercepts: 9.1 m @ 9.6 g/t Au, 38.2 m @ 2.9 g/t Au, 5.4 m @ 7.8 g/t Au, 19.5 m @ 1.3 g/t Au, 15.2 m @ 1.8 g/t Au and 12.7 m @ 1.6 g/t Au. Single sample intervals are as high as 0.5 m @ 126.5 g/t Au. The mineralisation is of low sulfidation epithermal character, with structurally controlled, multi-event quartz breccias and stockwork zones, hosted in propylitically altered meta-andesites.
  • Gainey Capital Corp. continues drilling at its El Colomo property in Nayarit, now targeting the La Higuerita zone, which is 1,000 meters in length and 80 meters in width. Select samples on this zone run: 0.4 m @ 33.3 g/t Au, 1,550 g/t Ag; 1 m @ 20 g/t Au, 895 g/t Ag; 2 m @ 3.2 g/t Au, 147 g/t Ag; 0.5 m @ 1.5 g/t Au, 491 g/t Ag.
  • Alix Resources Corp. is planning to drill test two target areas on its Elektra project in Sonora. The RC drill program envisages 25 holes on the Tecolote concession, and has filed for the environmental permit after obtaining the approval of the local ejido.


  • Goldcorp Inc. announced on October 7th that activities have resumed at its Peñasquito mine in Zacatecas, after an illegal blockade was removed by the authorities.
  • Endeavour Silver Corp. reported production results from its operations in Mexico during the third quarter 2016. Total production from the three mines was 1.28 M Oz Ag and 14.3 K Oz Au during the period. At Guanaceví, in Durango, 82 K tonnes were processed at an 892 tpd (tonnes per day) rate and a grade of 235 g/t Ag and 0.51 g/t Au, for a production of 542 K Oz Ag and 1,163 Oz Au. At the Bolañitos mine in Guanajuato,  8 K tonnes were processed (1,442 tpd)  @ 76 g/t Ag and 2.3 g/t Au, for  a production of 255 K Oz Ag and 7,875 Oz Au. At the El Cubo mine in Guanajuato, 140.8 K tonnes were processed @ 128 g/t Ag, 1.46 g/t Au. Silver and gold recoveries stand at 78.8% – 87.5% and 80.3% – 86.4% respectively.
  • Mexus Gold US and MarMar Holdings. stated that once the leach pad holds 10 K tonnes, the leaching process will start at its Santa Elena mine in Sonora (not to mistake for First Majestic’s Santa Elena mine, also in Sonora). MarMar’s plan is to ramp-up production to 10 K tonnes per day in an 8 month period.
  • Great Panther Silver Ltd. announced production results for the third quarter 2016. At the Guanajuato mine complex 8.6 K tonnes were processed @ 2.36 g/t Au and 163 g/t Ag, to produce 383.6 K Oz Ag and 5,306 Oz Au, with silver and gold recoveries at 88.9% and 85.8% respectively. At its Topia mine in Durango 13.7 K tonnes were processed @ 322 g/t Ag and 0.49 g/t Au, to produce 126.9 K Oz Ag, 117 Oz Au, 248 tonnes Lead and 324 tonnes zinc, with recoveries at 89.7% and 54.3% respectively for silver and gold.
  • Gold Resource Corp. received the blasting permit (the last permit needed) to start development at its Altagracia project, located 15 km NW from its Arista mine and El Aguila mill complex. Production is deemed to start before the end of the year, or the first quarter of 2017. Oxide mineralization will be processed at the El Aguila idle agitated leach circuit, with a starting 150 tonnes per day processing rate. The last estimate was of 185 K tonnes in the mineralized material category (?) @ 321 g/t Ag and 0.55 g/t Au.
  • Capstone Mining Corp. reported a fatal accident at its Cozamin mine in Zacatecas, where a miner was struck by a piece of mobile equipment.
  • Fresnillo PLC reported third quarter 2016 results, which include 11.8 M Oz Ag and 220 K Oz Au for the period. That means a 6.7% rise in silver production, due mainly to the start-up of the first phase of the San Julian plant in Chihuahua and increased ore processed at Saucito, in Zacatecas. Gold production rose 21%, due to higher volumes and grades from La Herradura and Noche Buena mines in Sonora.
  • Fortuna Silver Mines Inc. announced third quarter 2016 production, which includes numbers from its Mexico operations. At its San Jose mine in Oaxaca, 268.2 K tonnes of ore were processed at an average 3,056 tpd rate, grading 224 g/t Ag and 1.76 g/t Au, with recoveries of 82.9% and 92.1% for silver and gold respectively, to obtain a production of 1.78 M Oz of silver and 13,951 Oz of gold.
  • Timmins Gold Corp. released preliminary production results for the third quarter 2016. At its San Francisco mine in Sonora, 1.79 M tonnes of ore were processed (19,472 tpd), and 3.72 M tonnes of waste moved at a 2.13 strip ratio. The ore treated averaged 0.61 g/t Au, to produce 24,052 Oz Au and 13,868 Oz Ag.
  • Capstone Mining Corp. announced production results from the 2016 third quarter, including from its operations at the Cozamin mine in Zacatecas, where 254.8 K tonnes were processed (2,770 tpd) @ 1.39% Cu, 0.75% Zn, 0.06% Pb and 40 g/t Ag. Recoveries stood at 94.7%, 70%, 14.2% and 71.2%, on the same order, to reach the production of 3,358 tonnes of copper, 1,352 tonnes of zinc, 24 tonnes of lead and 235.3 K Oz of silver.
  • McEwen Mining Inc. presented production results for the third quarter of 2016, including information from its El Gallo mine in Sinaloa, where it produced 11,849 Oz Au.

First Majestic Silver Corp. presented production results for the third quarter of 2016 from its six mines in Mexico, for a total production of 4.52 M Oz Ag, 14,452 Oz Au, 8 M Lb Pb and 1.51 M Lb Zn. During the quarter the company drilled 3,520 metres at Santa Elena in Sonora; 3,681 metres at La Encantada mine in Coahuila; 5,115 metres at La Parilla mine in Durango; 6,643 metres at Del Toro mine in Zacatecas; 7,817 metres at the San Martin mine in Jalisco, 9,515 metres at La Guitarra, in Mexico State.






  • Fresnillo PLC. announced that the second phase of operations at its San Julian mine in Chihuahua will start on the second quarter of 2017, instead of the fourth quarter of 2016.
  • Baja Mining Corp. (from now on Camrova Resources Inc.) released an update on the Boleo mine status in Baja California Sur, on which owns a 10% interest. High mine operating costs (lower underground mining rates and grades than planned), low metallurgical recoveries and low copper prices are a significant challenge. New underground equipment is being delivered to try different underground mining methods and changes are being made to increase metal recoveries.


  • Corex Gold Corp. entered into a subscription agreement to issue 25.3 M common shares at $0.10 per share (or $2.53 M) to Alamos Gold Inc. Upon completion of the issuance, and if H Morgan and Company (HMC) elects not to purchase entitled participation shares, Alamos Gold will own ~19.99% of the shares of the company, HMC 14% and management 9% (Santana, Sonora).
  • Alset Energy Corp. has closed the first tranche of it previously announced re-priced private placement, for gross proceeds of $207.9 K. The financing is still open, and aims to raise up to $1 M (Lithium salars, San Luis Potosi, Zacatecas).
  • Premier Gold Mines Ltd. completed a previously announced non-brokered private placement for aggregate share profits of $4.53 M (Mercedes, Sonora).


  • Avino Silver & Gold Mines Ltd. filed on the SEDAR system the previously announced resource estimate on 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.


  • Corex Gold Corp. granted Alamos Gold Inc. (in connection with the issuance of Corex shares to Alamos) the right to nominate up to two directors of Corex. Alamos has elected not to exercise such right at this time but retains the right to do so in the future (Santana in Sonora).
  • Starcore International Mines Ltd. registered on October 11, 2016 on the United States Securities Exchange Commission (SEC). Transactions on the company’s shares can now be resumed (San Martin mine, Queretaro).
  • Baja Mining Corp. announced the 20:1 consolidation of shares and name change to Camrova Resources Inc. will be effective on October 17th(Boleo, Baja California Sur).

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, a strongly silicified volcanic rock crosscut by an intense quartz veinlet stockwork, in an orogenic gold prospect of the Sonora desert.


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