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

During the 5th week of the year (30th January to 5th February, 2017) at least 17 press releases were announced by companies working in Mexico, including three preliminary production reports for 2016 by New Gold, Americas Silver and Excellon. ON EXPLORATION, in Chihuahua one company presented drilling results from a property near Parral, and one other is to start a drilling program in the Sierra Madre. ON MINING, New Gold, Americas Silver and Excellon presented preliminary production results for 2016. In Oaxaca operations were suspended in a mine after a fatality, while at the same site high grade step-out drilling results were released. In Durango high grade drilling results were released on a mine that is seeing its water management system overhauled.  ON FINANCING, Three companies reported conducting financial operations, for a consolidated total of $2.75 M. ON RESOURCES AND DEVELOPMENT, high grade drilling intercepts step-outs were reported for mines in Mexico State and Durango.  ON DEALS AND CORPORATE ISSUES, a large property in Sonora with enticing exploration potential was optioned, and a small concession in the same area was sold. In Zacatecas the sale of a concession is now complete.

ON EXPLORATION

  • Kootenay Silver Inc. released results from the seven remaining drill holes on the 700 m long La Soledad structure, at its La Cigarra property in Chihuahua. The holes tested a 700-meter strike length of the La Soledad structure, which extends southward along strike from the La Cigarra silver deposit for a distance of approximately 2 kilometers. The latest results show the continuity of the structure, although at low silver values. “Follow up drilling on both the 3.8 kilometer RAM and 2.0 kilometer Soledad structures remain a priority for the Company, as does the drilling of known underlying high-grade mineral extensions on the La Cigarra silver deposit.”
  • Golden Goliath Resources Ltd. announced that drilling is to commence at its La Reforma property in the Uruachic district of Chihuahua, by optioner Fresnillo PLC.

ON MINING

  • New Gold Inc. presented 2016 production results, including figures from its Cerro San Pedro operations in San Luis Potosi. Cerro San Pedro finished active mining late in the second quarter 2016 and is now into residual leaching. During the year 64,993 Oz Au, 0.2 M Oz Ag were produced at cash cost $1,014 and AISC $1,045 per gold ounce. For 2017, Cerro San Pedro is expected to produce 35 -45 K Oz Au on its first year of residual leaching.
  • Americas Silver Corp. released production results for 2016, and guidance for 2017. At the Cosalá operations 500.5 K tonnes were milled @ 78 g/t, to produce 1 M Oz Ag, 10.5 M Lb Zn, 4.2 M Lb Pb, 1 M Lb Cu. At cash cost $7.79 and AISC $9.31 per silver ounce. The first exploration budget in four years envisages $2 M on targets at the San Rafael/El Cajón corridor and at the San Rafael 120 Zone. The construction of the San Rafael project began on late 2016, and is to be operational by the third quarter of 2017. Glencore has facilitated a low interest $15 M concentrate pre-payment to fund a portion of the development costs.
  • Gold Resource Corp. voluntarily halted operations at its Arista mine in Oaxaca, after the death of an employee in an accident involving heavy equipment inside the mine. “This accident follows a recent unrelated fatality of a worker employed by a narrow-vein mine contractor at the Arista Mine as a result of a ground fall event. The Company and the contractor immediately notified governmental authorities following the first accident, and the authorities’ initial investigation concluded there was no wrong-doing on the part of the Company or the worker.”
  • Excellon Resources Inc. presented 2016 production results for 2016 from its Platosa mine in Durango, where 53.2 K tonnes were mined and 55.6 K tonnes were milled @ 456 g/t Ag, 4.4% Pb, 5.7% Zn with recoveries of 90.5% Ag, 82.1% Pb, 80.2% Zn to produce 752.7 K Oz Ag, 4.43 M Lb Pb, 5.58 M Lb Zn. A water management system comprising a primary booster station and a couple more pumps is being implemented to create a “depression cone” that permits dry mining conditions. The system was successfully tested in the last quarter of 2016, and is expected to be fully operational on the second quarter of 2017.
  • Gold Resource Corp. announced additional step-out intercepts of the Switchback vein system at its Arista mine in Oaxaca. The two drill results released include 5.01 m @ 4 g/t Au, 66 g/t Ag, 0.5% Cu, 4.3% Pb, 5.9% Zn; 1.88 m @ 5.88 g/t Au, 63 g/t Ag, 0.9% Cu, 2.5% Pb, 7.9% Zn. The Switchback system now extends for 575 m along strike, 275 m more than at January 1st , 2017.

ON FINANCING

  • Alix Resources Corp. arranged a non-brokered private placement for aggregate gross proceeds of $250 (Elektra, Sonora).
  • Aura Silver Resources Inc. closed the second and final tranche of its non-brokered private placement for gross proceeds of $500 K in both tranches (Taviche, Oaxaca).
  • Almadex Minerals Ltd. announced a proposed non-brokered private placement to raise approximately $2 M (El Cobre, Veracruz).

ON RESOURCES AND DEVELOPMENT.

  • Excellon Resources Inc. released results from its surface and underground exploration program at its Platosa mine in Durango. To date 5,400 m have been completed from the 26,000 m program initiated on Q3 2016, focused on defining additional shallow mineralization near existing infrastructure. Intercepts include 2.4 m @ 686 g/t Ag, 4.7% Pb, 6.2 % Zn; 2.0 m @ 504 g/t Ag, 4.3% Pb, 7.1% Zn; 1.2 m @ 843 g/t Ag, 0.4% Pb; 3.0 m @ 795 g/t Ag, 9.2% Pb, 25.8% Zn.

ON DEALS AND CORPORATE ISSUES

  • Riverside Resources Inc. signed two agreements, consolidating the La Cecilia (formerly Cerro Magallanes) project in Sonora. Riverside signed an option to purchase agreement to acquire 100% interest in the three Cecilia-Margarita concessions from Gunpoint Exploration Ltd., with the following payment schedule: $10 K on signature, $15 K and 100 K Riverside shares on the filing of the agreement, $25 K and 200 K on the first anniversary, $75 K and 300 K shares on the third anniversary and $125 K and 400 K shares on the third anniversary. Additionally, Riverside purchased the Violeta concession from Millrock Resources Inc. for C$10 K and 100 K Riverside shares and a 0.5% NSR. The La Cecilia project comprises a felsic volcanic edifice/dome and numerous felsic dikes cutting through a Mesozoic sedimentary sequence. A low sulfidation epithermal system developed on the complex volcanic center, with gold related to structures and breccias and strong alteration. There are several target areas in the project, some of which have seen drilling by past operators with intercepts of up to 1.4 g/t Au over 30 m.
  • Arian Silver Corp. announced the sale of the Calicanto property in Zacatecas is now complete, having received the final US$400 K + IVA (VAT).

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, quartz vein float in central Chihuahua, displaying lattice calcite replaced by silica, evidence for boiling in a low sulfidation epithermal system.

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