During the 7th week of the year (13th to 19th February, 2017) at least 21 press releases were announced by companies working in Mexico, including a financing round by one company. ON EXPLORATION, in Sonora, Riverside presented 2016 exploration results for an orogenic gold target, and Kootenay informed of drilling results by a partner on a silver property. In Zacatecas Goldcorp informed of exploration results and coming work on several targets and regional exploration. ON MINING, GoGold released financial results for the fourth quarter 2016, Pan American, Capstone, New Gold, Agnico Eagle and Goldpcorp presented 2016 results. Argonaut Gold and Agnico Eagle presented their three-year outlook on production. Primero Mining halted operations due to a strike. ON FINANCING, One company reported the opening of a non-brokered private placement for 1.85 M. ON RESOURCES AND DEVELOPMENT, Torex Gold reported high grade drill intercepts at its Limon-Guajes mine; Mag silver released high grade results from drilling in the Valdecañas vein; Pan American Silver presented reserve and resource estimates for its operations in Zacatecas, Chihuahua and Sonora. Agnico Eagle present drilling results on a program aimed at increasing resources at its El Barqueño property in Jalisco; Peñoles is to invest US$1,100 M mainly in developing a mine in Guerrero and upgrading a zinc plant in Coahuila. ON DEALS AND CORPORATE ISSUES, Firma Holdings and MX Gold closed a deal on a smelter in Durango.
ON EXPLORATION
- Kootenay Silver Inc. announced high-grade silver intercepts from the drill program operated by Pan American Silver Corp. at its La Negra property in Sonora. Intercepts include 30.95 m @ 66 g/t Ag; 44.15 m @ 149 g/t Ag, including 9.15 m @ 449 g/t Ag; 8.7 m @ 352 g/t Ag; 32.15 m @ 237 g/t Ag; 14.4 m @ 98 g/t Ag; 28.55 m @ 145 g/t Ag, including 8.15 m @ 460 g/t Ag.
- Riverside Resources Inc. reported progress on work funded by its partner Centerra Gold Inc. on the Glor project in Sonora. “The 2016 exploration programs included geological mapping at a 1:5,000 scale, a 37.7 line- kilometre induced polarization survey and a 136 line-kilometre ground magnetics survey.” More than 2,500 geochemical samples were collected, including rockchip, soil and channels on trenches. Results include a 2,200 m by 900 m soil anomaly, broadly coincident induced polarization anomalies, and trench sampling results like 9 m @ 0.42 g/t Au, 27 m @ 0.37 g/t Au and 12 m @ 0.50 g/t Au.
- Goldcorp Inc. provided an exploration update, including work in Mexico, where three projects accrued almost 14,000 m of drilling on the fourth quarter 2016. At La Palma target (adjacent to the boundary of the final Peñasquito pit) 8,203 m were drilled on 17 holes, with some mineralization intersected. At Saltillito (80 km E from Peñasquito), 1,964 m of drilling in four holes failed to intersect economic mineralization. At Los Lobos, 50 km south from Peñasquito, reconnaissance work is to start on the first quarter 2017. Regional exploration has started on a 50 x 30 km block in the Peñasquito region, and targets are expected to be generated.
ON MINING
- GoGold Resources Inc. released financial results for the fourth quarter 2016, with $6.9 M revenue from the sale of 413, 941 AgEq ounces, at cash cost $6.70 per AgEq ounce. During the quarter 4,249 Oz Au and 102,371 Oz Ag were produced, for a total of 403,545 Oz AgEq. The Parral tailings project in Chihuahua produced 1,539 Oz Au and 91,022 Oz Ag, while at Santa Gertrudis in Sonora 2,710 Oz Au and 11,349 Oz Ag were produced.
- Pan American Silver Corp. presented unaudited results for 2016, including figures from its Mexican operations. At La Colorada in Zacatecas, 5.80 M Oz Ag and 2.93 K Oz Au were produced at cash cost $6.15; at Dolores in Chihuahua, production was 3.84 M Oz Ag, 102.76 K Oz Au; at Alamo Dorado in Sonora, 1.86 M Oz Ag, 8.38 K Oz Au were produced. Lead zinc and copper production was not reported by mining unit. Development and mining investments are expected to result in significant production increments in Dolores and La Colorada for 2017.
- Capstone Mining Corp. presented its financial results for 2016, including production figures for its Mexican operation. At Cozamin in Zacatecas, 14,307 tonnes of copper were produced during 2016 at a cash cost of $1.48 per Lb Cu and all-in cost of $1.88 per Lb Cu. Lower production was a result of a mine development shortfall on the first half of the year, with mine development increasing on the second half.
- New Gold Inc. presented its 2016 financial results, including figures from its Cerro San Pedro mine in San Luis Potosi. For Cerro San Pedro the 2017 guidance is to produce (from stockpiles, mining has ceased) 35 – 45 K Oz Au at cash cost $1,080 – $1,120 and AISC $1,090 – $1,130. The company had 135.7 M in cash and 50.2 M in short term money market instruments at the end of 2016.
- Goldcorp Inc. reported full year 2016 results, including figures from its operations in Mexico. At Peñasquito 183 K Oz Au were produced during the fourth quarter 2016. During 2017 gold production is expected to total 410 K Oz, at an AISC of $825 per ounce. The pyrite leach project is to treat Zn tailings and is expected to add 110 to 140 K Oz Au and 4-6 M Oz Ag annually, with production starting on 2019.
- Argonaut Gold Inc. provided three-year production outlook and updated mineral reserves and resources. First gold production at San Agustin is expected during the third quarter 2017, with the project expected to produce an average of 80 K AuEq Oz per year at cash cost of $650 per gold ounce.
- Agnico Eagle Mines Ltd. reported results for 2016 and production estimates for the next few years, including figures from its operations in Mexico. The Exploration budget for Mexico is $26.8 M, with 119,000 m of drilling, of which 65,000 m are in the mine areas and the rest in exploration projects. At Pinos Altos 2.26 M tonnes of ore were processed in 2016 at 6,175 tonnes per day (tpd) grading 2.78 g/t Au to produce 192,772 Oz Au. At the Creston Mascota satellite operation 2.1 M tonnes of ore were processed (5,790 tpd) at a grade of 1.12 g/t Au, to produce 47,296 Oz Au. At La India 5.84 M tonnes of ore were processed (15,948 tpd) @ 0.81 g/t Au, to produce 115,162 Oz Au.
- Primero Mining Corp. halted production at its San Dimas mine in Durango due to unionized workers initiating a strike action. “Primero’s key focus in these negotiations has been to better align the short-term bonus structure with overall mine-site performance and profitability, and to move the labour force onto a more continuous shift cycle to improve productivity.”
ON FINANCING
- Source Exploration Corp. arranged a non-brokered private placement for gross proceeds of $1.85 M, to replace the second tranche of the previously announced non-brokered private placement.
ON RESOURCES AND DEVELOPMENT.
- Torex Gold Resources Inc. released results from the first round of its step out drilling program for its Sub-Sill target at its Limon-Guajes operations in Guerrero. High grade intercepts (core length) in skarn mineralization include: 2.9 m @ 33.7 g/t Au, 0.3% Cu; 7.4 m @ 23.0 g/t Au, 1.2% Cu; 16 m @ 19.4 g/t Au, 1.0% Cu; 4.1 m @ 23.2 g/t Au, 1.2% Cu; 15.5 m @ 14.9 g/t Au, nil Cu; 5.8 m @ 23.9 g/t Au, 0.1% Cu; 3.9 m @ 112.7 g/t Au, 1.3% Cu; 10.6 m @ 9.1 g/t Au, 3.4% Cu. The 34 hole, 7,727 meter program tested an area roughly 350 m by 150 m, with the system remaining open in several directions. “Gold occurs in low and high sulfidized pyrrhotite rich skarns, while silver and copper mineralization is primarily determined by the degree of sulfidation of the host skarn. Mineralization is strongly associated with a late stage retrograde alteration characterized by amphiboles, chlorite, calcite ± quartz ± epidote, affecting pyroxene-garnet marble related exoskarn and granodiorite porphyry related endoskarn. Locally mineralization occurs in narrow lenses of massive sulfides.”
- Mag Silver Corp. reported results for 13 exploration and infill holes that extend the high-grade mineralization on the Deep Zones of the Valdecañas vein system on their Minera Juanicipio JV with Fresnillo PLC in Zacatecas. The Deep Zone West has now been traced over 550 m, with vein widths from 11.4 m to 26.5 m and a minimum vertical height of 200 m. The Deep Zone East is continuous over 750 m, 5.6 m to 29.9 m in width, with up to 300 m of vertical extent. Underground development and mining infrastructure continue to be progressed, the ramp reached the uppermost part of the Valdecañas vein in December 2016 and footwall development has commenced.
- Golden Minerals Co. presented a preliminary economic assessment (PEA) for its Santa Maria project in Chihuahua. Indicated resources stand at 180 K tonnes @ 304 g/t Ag, 1.4 g/t Au and 160 K tonnes of inferred resources @ 321 g/t Ag, 0.9 g/t Au. Life of mine (LOM) of 3.2 years, for production of 2.1 M Oz Ag, 7.2K Oz Au at cash cost $12 per silver ounce (net of Au credits).
- Pan American Silver Corp. reported reserves and mineral resources as of the end of 2016, which includes figures on its La Colorada mine in Zacatecas, Dolores mine in Chihuahua and La Bolsa project in Sonora.
- Telson Resources Inc. completed an agreement for the acquisition of a sulfide flotation mineral processing facility for CDN$1.3 M, 50% to be paid immediately and the balance when the plant is transported. “Equipment purchased is estimated to make up approximately 80% of the total milling equipment required to construct a fully functioning mill facility at Tahuehueto.”
- Agnico Eagle Mines Ltd. presented advances on its exploration program at El Barqueño, Jalisco. During 2016 40 holes were drilled in the Olmeca area, in the Socorro and Mortero veins. The Socorro vein has been defined for 1.6 km, and remains open. Results include 5.2 m (true width) @ 19.1 g/t Au, 14 g/t Ag; 4.3 m @ 2.8 g/t Au; 12.1 m @ 7.0 g/t Au, 5 g/t Ag; 6.9 m @ 7.3 g/t Au. The Mortero vein has been delineated for 300 m in length and 300 m in depth, and remains open in all directions. At the Mortero vein results include 39.6 m @ 51 g/t Ag; 41 m @ 73 g/t Ag; 16.4 m @ 1,111 g/t Ag . “Approximately 45,000 metres of additional drilling is expected to be completed by the end of 2017 at the El Barqueno project, principally at the Socorro, Mortero, Tierra Blanca, Cuauhtémoc, Peña de Oro, Peña Blanca, San Diego, and El Rayo prospects and in the Tecolote-Tortuga areas, within the south area of the El Barqueno project. Exploration expenditures in 2017 are expected to total approximately $16.8 million”.
- Industrias Peñoles is to invest US$1,100 M in Mexico. The Rey de Plata mine (Au-Ag-Cu-Pb-Zn) in Guerrero is in construction, and production is expected by the end of 2017 at a rate of 4,500 tonnes per day; the price tag is estimated at $450 M. The zinc processing plant in Torreon, Coahuila, is also being upgraded to produce 50% more than the current output by early 2018.
ON DEALS AND CORPORATE ISSUES
- Firma Holdings Corp. which has a JV with MX Gold Corp. regarding its Durango Smelter Project, has now completed the purchase of 100% interest in Inversiones Durango San Luis, S.A. de C.V.. “The acquisition includes a fully permitted smelter that was completed in 2014 for a throughput capacity of 50 tonnes per day (TPD). The smelter was built to receive and process high-grade direct ship ores and concentrates from small-scale miners…”.
- MX Gold Corp. entered into a binding option agreement with American Metal Mining S.A. de C.V. whereby, upon certain scheduled payments totaling US$1.525 M, will acquire 50% of the shares of a private Mexican corporation that holds the IDS project, which includes a past producing gold smelter in Durango.
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, breccia-vein float in central Chihuahua, displaying quartz vein and minor volcanic rock fragments in a silicified reddish matrix.