Highlights on the First Week of January, 2017. Mineral Exploration in Mexico

During the 1st week of the year (2nd to 8th January, 2017) at least nine press releases were announced by companies working in Mexico, including three quarterly reports. ON MEXICO ISSUES, the country retains the first place for the sixth year in a row as the top silver producer of the world. ON EXPLORATION, very high grade gold drill intercepts were reported in exploration holes from a mine in the Guerrero Gold Belt. In Sonora the exploration plan for the year was released by one of the major players in the state. ON MINING, a mine in Sinaloa produced almost 10 K Oz Au during December, as it takes advantage of mining the high grade part of the deposit. Three companies presented fourth quarter 2016 reports, one operating in Sonora and Chihuahua, other with operations in Sonora and one more mining in Chihuahua. ON FINANCING, no financing reported. ON DEALS AND CORPORATE ISSUES, two companies agreed to an exploration JV for gold projects in Sonora.

ON MEXICO ISSUES

  • Silver Production. For sixth year on a row Mexico was the top producer of silver in the world in 2015, followed by China, and Peru. Production was 3.3% higher than in the previous year, reaching 191.5 M Oz Ag. Latin America produces 53% of the silver in the world, followed by Asia with 20%. In 2015 the average price for the metal was $15.70 per ounce, with a peak of $18.20 and a low of $13.70.

ON EXPLORATION

  • Riverside Resources Inc. provided an overview of company goals for 2017, which include drill results from the Thor copper project and field exploration results from the Glor project, both in Sonora, and funded by partners Antofagasta and Centerra Gold  respectively. A drilling program is anticipated to begin at Glor in 2017, and a $350 K exploration program is to be spent in the Clemente project in Sonora, the latter funded by partner Silver Viper Minerals Corp. The company is looking for partners for its Peñoles (Durango), Tajitos (Sonora), Ariel (Sonora) and La Silla (Sinaloa). Riverside enters 2017 with approximately CAD$3.5 M, in cash and less than 37.5 M shares outstanding.
  • Torex Gold Resources Inc. released high-grade results from drilling under El Limon sill at its El Limon-Guajes mine in Guerrero. Drill intercepts include 3.4 m @ 317.8 g/t Au, 51 g/t Ag, 1.6% Cu; 2.4 m @ 230.7 g/t Au; 9.6 m @ 19.6 g/t Au, 0.3% Cu; 13.3 m @ 22.6 g/t Au, 37 g/t Ag, 3.1% Cu; 4.3 m @ 83.3 g/t Au, 18 g/t Ag, 1.1% Cu; 5.6 m @ 25.5 g/t Au, 36 g/t Ag, 3.7% Cu. These results open the possibility of finding additional “sill type” targets in areas close to the processing plant. From September to December 2016, 7,727 m were drilled in 34 holes targeting the zone, with results for 23 of them; the system remains open down-dip and up-dip, laying between 30 and 270 m from the surface. Skarn-hosted gold mineralization is developed along the contacts of the intrusive rocks and the enclosing carbonate-rich sedimentary rocks. “At the El Limon Sill area, several skarn zones were identified along the contacts of the carbonate rich sediments and marbles of the Cuautla and Morelos formations and sills fingering out from the main granodiorite stock”…. “Mineralization is hosted in pyroxene-garnet marble related exoskarn, in granodiorite related endoskarn and locally, in narrow lenses of massive sulfides, that have been affected by a late stage retrograde alteration, characterized by amphiboles, chlorite, calcite ± quartz ± epidote. Gold occurs in low and high sulfidized skarns, while silver and copper mineralization is primarily determined by the degree of sulfidation of the host skarn.”
  • Alamos Gold Inc. released exploration data on its Sonora projects during the last quarter. At La Yaqui, new drilling intercepts include 13 m @ 6.9 g/t Au; 63 m @ 3.2 g/t Au; 32.6 m @ 6.3 g/t Au; 66 m @ 2.5 g/t Au; 21.9 m @ 6.3 g/t Au; 45.6 m @ 2.6 g/t Au and 41.4 m @ 2.3 g/t Au. At La Yaqui drilling was aiming at resource definition, while at Cerro Pelon systematic exploration was commenced over a larger area, looking for ore vectors, focusing on the western zone. The exploration budget includes $6 M for La Yaqui, $4 M at Cerro Pelon, $2 M at Los Bajios and $5 M at El Refugio and other prospects on the Mulatos District.

ON MINING

  • Marlin Gold Mining Ltd. produced 354 Oz Au per day during December 2016, having crushed 110,943 tonnes of ore @ 5.17 g/t Au (18,431 Oz Au stacked on the heap) to produce 9,924 Oz Au. Gold recovery is estimated to be around 75%, and the company expects the total cost per ounce to be below $250 for December.
  • GoGold Resources Inc. presented production results for the quarter ended on December 31st, 2016. Production was 406.9 K AgEq Oz, which represents an 122% increase over the previous quarter. About 50% of the production comes from the Santa Gertrudis gold mine high grade zone in Sonora.
  • Alamos Gold Inc. reported 2016 fourth quarter results, producing 105,676 K Oz Au, (392 K Oz Au for the year) at about $1,000 per ounce all-in sustaining costs. Of these, 44,900 Oz Au and 16,114 Oz Au were produced at Mulatos and El Chanate mines, both in Sonora. For 2017 the company aims to produce 6% more gold than in 2016, and reduce consolidated all-in sustaining cost per ounce to $940, with strong capital and development spending and initial low-cost production from La Yaqui in Sonora. The global exploration budget for the year 2017 amounts to $24 M. Mulatos is to produce 150 – 160 K Oz Au, with open pit grades of 0.79 to 0.88 g/t Au, milled grades of 8 g/t Au and expected recoveries of 73%; La Yaqui is to begin production on the second half of 2017, and El Chanate is to produce 50 – 60 K Oz Au, down from 68 K Oz on 2016, with lower grades and throughput rates, at an average grade of 0.53 g/t Au. The waste to ore ratio is expected to be 3.4: 1 during the year in this property with a short remaining mine life.
  • Coeur Mining Inc. announced fourth quarter 2016 production of 3.9 M Oz Ag and 102.5 K Oz Au, and full-year production of 14.8 M Oz Ag and 358.17 K Oz Au. At Palmarejo in Chihuahua, 293.7 K tonnes of ore were mined at an average grade of 155 g/t Ag and 2.8 g/t Au. 287.6 K tonnes were processed, with recovery rates of 89.1% and 90.4% for silver and gold respectively. Total production for the year was 4.442 M Oz Ag and 73,913 Oz Au. “Ramp-up of higher-grade, higher-margin underground operations advancing on schedule with Guadalupe and Independencia now mining at approximately 2,400 and 1,000 tons per day, respectively”; targeting combined mining rate of 4,500 tons per day by year-end 2017 and total production of 6.5 – 7.0 M Oz Ag and 110 – 120 K Oz Au.

ON FINANCING

  • No Financing to report

ON DEALS AND CORPORATE ISSUES

  • Millrock Resources Inc. and Centerra Gold Inc. entered into a strategic alliance, under which Millrock will execute generative exploration and evaluate prospective properties to develop gold exploration projects. Centerra will provide funding for at least $250 K this year.

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, light rain south of La Rumorosa, Baja California.

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