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

During the third week of October, at least 23 press releases were published by companies working in Mexico, including five third quarter production releases. ON MEXICO NUMBERS AND NEWS, a member of the Special Commission on Mining is to be present in forums to be held in all mining States to generate a favorable investment climate. A mine started operation in Sinaloa. ON EXPLORATION, eight companies reported exploration updates on their properties, which include drilling results from a property in Sonora and another in Durango, as well as the announcement of incoming drilling programs at properties in Sinaloa, Chihuahua and Sonora. A company commenced a PIMA study program to integrate into its drill targeting in Chihuahua, another announced  the high grade gold results from trenching in Sonora, and one more is to produce an environmental report prior to drilling in Chihuahua. One more company disclosed the assay results of lithium rich clays in Sonora.  ON MINING, five companies reported third quarter production results for its operations in Sonora, Durango, Oaxaca and Chihuahua. A company has completed development work to start mining a new ore body in Oaxaca, another company reached the high grade part of the resource on its property in Sinaloa , a third one commenced bulk sample processing in Durango and a fifth reported production from mine and processing facilities in Sinaloa for September. ON FINANCING, one company issued 34.4 M shares @ C$0.10.  ON DEALS AND CORPORATE ISSUES, one company gained the right to appoint officials in another’s company board.

ON MEXICO NUMBERS AND NEWS

  • The Special Commission on Mining has Deputy Ms. Guadalupe Chavez Acosta as General Secretary. She is to visit all the state with mining activities, where forums are to be held to learn the needs of the industry and base the legislative agenda. She assured that the Environmental laws, the fiscal situation and the mining concessions regime will be reviewed, in order to generate a favorable business climate for national and international investments in the industry.
  • The Sinaloa Economic Development Bureau (Secretaría de Desarrollo Económico) announced the inauguration of the San Rafael mine in Cosala municipality, by Americas Silver Corp. The estimated annual production is to be 1 M Oz Ag, 50 M Lb Zn and 20 M Lb Pb.

ON EXPLORATION

  • Oceanus Resources Corp. released results from nine new diamond drill holes at its El Tigre property in Sonora. The purpose of the drill campaign is to determine the extent and continuity of mineralization test the oxide zone to 200 m depth and collect core for metallurgical work. Significant intervals include 95.6 m @ 1.17 g/t Au, 13 g/t Ag (including 42.1 m @ 2.4 g/t Au); 74.2 m @ 0.8 g/t Au, 11 g/t; 95.5 m @ 0.42 g/t Au, 26 g/t Ag. Oceanus has now completed 3,127 m on 19 holes.
  • Santana Minerals Ltd. will commence a 22 hole, 2,800 m RC drill program at its Cuitaboca project in Sinaloa. The objectives include to extend drilled high grade zones on the Mojardina structure and to test other targets on the same structure,the Jesus Maria breccia and the Carajuca splay. Significant intercepts from the first drill campaign include near-surface intercepts like 10 m @ 64 g/t Ag; 14 m @ 76 g/t Ag; 83 m @ 97 g/t Ag; 67 m @ 66 g/t Ag and 51 m @ 42 g/t Ag.
  • Orex Minerals Inc. and partner Canasil Resources Inc. announced assay results for seven out of eleven holes of the third phase of drilling at its Sandra Escobar project in Durango. True width (TW) intervals include 12.26 m @ 36 g/t Ag (and a lower interval of 6.9 m @ 46 g/t Ag); 7.6 m @ 32 g/t Ag on the Cerro Chato Zone and 33.6 m @ 108 g/t Ag; 11.5 m @ 28 g/t Ag; 32.7 m @ 55 g/t Ag on the southern part of the Main Zone. An aeromagnetic and radiometric survey is being flown over the property, and an initial resource estimate is under preparation and due for completion by the end of October.
  • Mammoth Resources Corp. has commenced a PIMA x-ray diffraction ground survey at its Tenoriba property in Chihuahua. The company is collecting samples every 100 m along lines spaced 500 m apart, same that will be analyzed for the presence of clays associated to high sulfidation epithermal systems. The results of this survey are to be integrated with the previous studies, which include geological mapping, rock chip and channel sampling and surface geophysics to aid in the selection of targets for a planned drilling campaign early next year.
  • GoGold Resources Inc. has uncovered additional zones of high grade gold on surface at the Greta project in its Santa Gertrudis mine in Sonora. Trenching results over three sub-parallel zones of mineralization, dipping 20 degrees and extending for 660 meters and 370 m down dip have been released. Assay results from trenching include the following intervals: 18 m @ 32.7 g/t Au, 14 g/t Ag; 30 m @ 1.6 g/t Au, 4 g/t Ag; 18 m @ 2.4 g/t Au, 3 g/t Ag; 24 m @ 4.6 g/t Au, 20 g/t Ag and 12 m @ 6.8 g/t Au, 25 g/t Ag. A total of 7,800 tonnes @ 14 g/t Au have been shipped to a custom mill for grinding, cyanidation and zinc precipitation. Gold recoveries are expected to reach > 85%.
  • Silver Spruce Resources Inc. is working to produce an environmental report to file at SEMERNAT, regarding the incoming drill 1,000 – 1,500 m diamond drill program at its Pino de Plata property in Chihuahua.
  • SilverCrest Metals Inc. has drilled ~6,400 m in 22 core holes testing the Las Chispas and Guillermo Tell veins, as well as the La Victoria structure. Approximately 6.5 km of 11.5 Km of underground workings have been rehabilitated. Average backfill sampling averages 2.45 g/t Au, 226 g/t Ag for the Las Chispas vein; 1.24 g/t Au, 212 g/t Ag for the Guillermo Tell vein and 1.88 g/t Au, 126 g/t Ag for the Babicanora vein. Average dump grades are 1.04 g/t Au, 78 g/t Ag. A 2,000 m underground drilling program and minimum 6,000 m surface drill core program is to start in November.
  • Alix Resources Corp. disclosed exploration information on the Agua Fria zone of its Electra project in Sonora. The lithium bearing clays have been defined in a zone 4,500 m by up to 800 m, with 35 additional samples grading 235 – 1,190 ppm Li (averaging 625 ppm Li).

ON MINING

  • Gold Resource Corp. reported production results for the third quarter 2016, from its Aguila project in Oaxaca. Preliminary numbers are 6,066 Oz Au, 431.3 K Oz Ag, 213 tonnes Cu, 1,000 tonnes Pb and 3,232 tonnes Zn.
  • Argonaut Gold Inc. reported third quarter 2016 production results. At El Castillo in Durango, 2.625 M tonnes of ore were mined at 70 K tpd rate and a grade of 0.33 g/t for a production of 13,049 Oz Au; 3.8 M tonnes of waste were moved for a waste/ore ratio of 1.45. At La Colorada 1.06 M tonnes of ore were mined @ 0.52 g/t, to produce 12,610 Oz Au and 35,863 Oz Ag; 4.16 M tonnes of waste were moved, for a waste/ore ratio of 3.91.
  • Sierra Metals Inc. reported third quarter production results, including numbers from its operations in Mexico. At Bolivar in Chihuahua, 250 K tonnes of ore were processed (2,860 tpd) @ 0.96% Cu, 14.8 g/t Ag, 0.13 g/t Au; recoveries were 83.5%, 80.3% and 55.3% for copper, silver and gold respectively, to produce 4.4 M Lb Cu, 95 K Oz Ag and 583 Oz Au. At Cusi in Chihuahua, 48.8 K tonnes of ore were processed (558 tpd) @ 158.1 g/t Ag, 0.27 g/t Au, 1.1% Pb, 1% Zn; recoveries were 69.1%, 62.8%, 83.8% and 35.3% respectively for Ag, Au Pb and Zn, to produce 172 K Oz Ag, 265 Oz Au, 999 K Lb Pb and 394 K Lb Zn.
  • Avino Silver & Gold Mines Ltd. reported production results for the third quarter 2016, from its Avino property in Durango. At the Avino mine 116 K tonnes were mined, 111 K tonnes were milled @ 71 g/t Ag, 0.47 g/t Au, 0.48% Cu; recoveries stood at 85%, 58%, 89% respectively for silver, gold and copper, to produce 214.8 K Oz Ag, 973 Oz Au and 1.04 M tonnes Cu. At the San Gonzalo vein 30 K tonnes were mined, of which 27 K tonnes were milled, @ 272 g/t Ag, 1.3 g/t Au. The recovery was 83% for silver and 78% for gold, for the production of 196 K Oz Ag and 841 Oz Au.
  • HECLA Mining Co. released preliminary gold and silver production results for the third quarter 2016, which includes numbers from its San Sebastian mine in Durango. San Sebastian produced 975.6 K Oz Ag and 8,189 Oz Au during the period.
  • Gold Resource Corp. has reached the Susana vein of the Switchback vein system with a development ramp from the Arista mine, part of its Aguila project in Oaxaca. The company expects to pull development ore during the fourth quarter 2016.
  • Marlin Gold Mining Ltd. announced it is now mining high grade ore from its La Trinidad mine pit in Sinaloa.
  • Telson Resources Inc. informed that metal recovery testing operations commenced on the 2 K tonne bulk sample collected from the El Creston zone at its Tahuehueto project in Durango. The material is being processed at the Andes mill, near Guanacevi.
  • Dyna Resource Inc. reported production from its San Jose de Gracia mine in Sinaloa, where 3,740 tons of ore @ 11.14 g/t Au head grade was processed at a 174 tpd rate.

ON FINANCING

  • Alamos Gold Inc. announced the purchase of 25.3 M shares of Corex Gold Corp. at C$0.10 per share. This amount represents 19.07% of the outstanding common shares of Corex.
  • Corex Gold Corp. announced that apart from issuing 25.3 M shares to Alamos Gold Inc., 3 M shares were issued to management, and another 6.1 M shares were issued to H Morgan & Company (HMC), all at a price of $0.10 per share. As a result of these transactions, Alamos owns 19.07%, HMC 17.75% and management owns 8% of the issued and outstanding shares of the company.

ON DEALS AND CORPORATE ISSUES

  • 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).

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 argillitized, moderately silicified felsic tuff, representing probably a paleo water table in the vicinity of the Las Chispas district in Sonora.

dscn0577-copia

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s