Highlights on the Fifth Week of March, 2017. Mineral Exploration in Mexico

During the 13th week of the year (March 27th to April 2nd, 2017), at least 24 press releases were announced by companies working in Mexico. ON EXPLORATION, Alix Resources commenced a lithium drilling program in Sonora, and One World announced an exploration second phase that is to include drilling in Baja California. Canuc presented historical rockchip results from its Santa Rosa property in Sonora, while Almadex resumed drilling at El Cobre in Veracruz, also presenting surface assays supporting a gold copper porphyry target on an undrilled area, and Gainey is finishing a drilling campaign in Nayarit. ON MINING, Americas Silver, Mag Silver and Sierra Metals presented operating and/or financial results for 2016, while First Majestic presented production results from its six mines in Mexico. ON FINANCING, Agnico Eagle announced a US $220 M offering, Wealth Minerals raised $4.86 M and Primero Mining closed an extension on a revolving credit facility for $75 M. ON RESOURCES AND DEVELOPMENT, Endeavour Silver presented a resource estimate for its El Compas mine in Zacatecas. Torex Gold announced a high-grade resource for its sub-sill deposit at its El Limon-Guajes property in Guerrero. Corex Gold continues mine construction at its Santana property in Sonora and Golden Minerals disclosed a corrected resource estimate for its Santa Maria property in Chihuahua. First Majestic presented resource estimates for its six operating mines in Mexico.  ON DEALS AND CORPORATE ISSUES, Santacruz Silver finalized the sale of El Gachi property in Sonora to First Majestic. HECLA exercised the right to lease Golden Minerals mill in Durango until the end of 2018.


  • Alix Resources Corp. commenced a 3,000 m drilling program at its Agua Fria lithium project in Sonora. The reverse circulation program is to test 5 km of prospective length of sedimentary units hosting Li-enriched clay horizons. Laser induced breakdown spectroscopy is to be used for real-time field analysis of drill cuttings.
  • One World Minerals Inc. announced a second phase program at is Rico Litio project in Baja California. This phase is to include a geophysical survey, geochemical sampling and a 4,000 m drill program to be completed before the end of June 2017. A third phase program will include pump test work to determine aquifer capacity, draw down flow rates and concentrations of lithium and potassium.
  • Canuc Resources Corp. provided a summary of previously compiled information on the Santa Rosa mine in the San Javier district, Sonora. The Santa Rosa mine consists of five levels spanning a strike length of 490 m and 135 down dip, ranging from 0.3 to 5.0 m in width and staying open along strike and to depth. The average of 341 samples of vein material is 1.45 m @ 388 g/t Ag, 2.02 g/t Au, 1.6% Pb, 1.3% Zn. Two subparallel veins, El Capulin and Las Norias, are virtually unexplored.
  • Almadex Minerals Ltd. informed that drilling recommenced in February on the Norte zone of its El Cobre project in Veracruz, and that a second rig has started coring at the site. Two kilometres south of the Norte zone is the undrilled Villa Rica target area, where 18 subcrop and outcrop samples collected in a 150 x 150 meters area (now called Raya Tembrillo). Once the mapping is complete, drilling is planned for the Villa Rica zone later in 2017.
  • Gainey Capital Corp. is currently finishing its phase 1 drill program on its Colomo property in Nayarit, focused on La Higuerita and La Nueva Victoria zones, with results for La Nueva Victoria already released and those of La Higuerita still pending.


  • Americas Silver Corp. presented financial and operational results for 2016. Cash and cash equivalents were $24.1 M by the end of the 2016, with net working capital of $20.1 M. “A low interest rate $15.0 million concentrate pre-payment facility was entered in January 2017 after year end with a subsidiary of Glencore PLC (“Glencore”) to fund a portion of the development costs for San Rafael” (Cosala and San Rafael, Sinaloa).
  • First Majestic Silver Corp. released 2016 production results for its six operating mines in Mexico: La Encantada in Coahuila, La Parrilla in Durango, Del Toro in Zacatecas, San Martin in Jalisco, La Guitarra in Estado de Mexico and Santa Elena in Sonora, according to the following table:

First Majestic 20161

  • Sierra Metals Inc. presented financial results for 2016, which include $42.1 M of cash and cash equivalents by the end of the period, and a net debt of $36.5 M (Cusi and Bolivar, Chihuahua).
  • Mag Silver Corp. presented the financial results for 2016, with working capital of US$139.1 M including cash, cash equivalents and term deposits of $138.3 M. In March 2016, the company closed a $65 M bought deal financing with an over-allotment option that took the total gross proceeds to $74.7 M. During 2016 the company funded $7.36 M on the Juanicipio project (under JV, Fresnillo PLC 56%, Mag Silver 44%). A 20,000 metre exploration drill program is expected to be approved for 2017 for Juanicipio (Juanicipio, Zacatecas; Cinco de Mayo, Chihuahua).


  • Agnico Eagle Mines Ltd. announced an offering to an institutional investor in the United States for total consideration of approximately US$220 M (La India, Sonora; Pinos Altos, Chihuahua).
  • Wealth Minerals Ltd. arranged a non-brokered private placement for gross proceeds of up to $4.86 M (Coronado and Valsequillo, Chihuahua).
  • Primero Mining Corp. has closed the extension of the maturity of its $75 M revolving credit facility with its syndicate of lenders.


  • Endeavour Silver Corp. reported its initial NI-43-101 mineral resource estimate and a preliminary economic assessment (PEA) for its El Compas mine project in Zacatecas. The indicated resource stands at 184.4 K tonnes @ 104 g/t Ag, 7.31 g/t Au, for 495 K Oz Ag, 34.9 K OZ Au, and the inferred resource is 216.8 K tonnes @ 76 g/t Ag, 5.38 g/t Au, for 527 K Oz Ag, 37.5 K Oz Au. The process is expected to recover 73% and 83.5% of the silver and gold contained in the ore at an estimated cash cost of $9.09 and AISC $9.64 per AgEq Oz. The company has made a production decision subject to receiving an explosives permit and further clarity from the Zacatecas government regarding an exemption from the new Zacatecas state environmental tax.
  • Torex Gold Resources Inc. announced a high-grade CIM compliant resource for the Sub-Sill deposit at its El Limon-Guajes property in Guerrero. Indicated resources include 0.35 M tonnes @ 7.82 g/t Au, 6 g/t Ag, 0.27% Cu, containing 89 K Oz Au, 71 K Oz Ag, and inferred resources include 1.33 M tonnes @ 7.58 g/t Au, 11.5 g/t Ag, 0.6% Cu, containing 324 K Oz Au, 490 K Oz Ag. Near term production is expected from the deposit, as the access ramp is now less than 170 m from the skarn rocks that host it.
  • Corex Gold Corp. is continuing construction and mining activities at its Santana project in Sonora. To date over 23 K tonnes have been placed on the first leach pad, and metal leaching is expected to start later in April. A second leach pad will be supplied with finer crush material, with the results from the two heaps aiding to optimize the process.
  • Golden Minerals Co. released a new resource estimate for its Santa Maria property in Chihuahua. “Due to an adjustment in the precise location of the claim, the updated property position results in an approximate 25 percent reduction to the previously announced inferred resource estimate…”. Indicated resources stand at 180 k tonnes @ 304 g/t Ag, 1.4 g/t Au, for 1.73 M Oz Ag, 8.1 K Oz Au, and inferred resources at 120 k tonnes @ 343 g/t Ag, 1.0 g/t Au, for 1.37 M Oz Ag, 1.64 K Oz Au, with an expected dilution of 10% and 19% respectively.
  • First Majestic Silver Corp. disclosed mineral resource estimates for its six mining units in Mexico and one advanced project: La Encantada in Coahuila, La Parrilla in Durango, Del Toro in Zacatecas, San Martin in Jalisco, La Guitarra in Estado de Mexico, Santa Elena in Sonora, and La Joya in Durango, with the consolidated figures on the following table:

First Majestic Resources to Dec 20161


  • Santacruz Silver Mining Ltd. announced the completion of the sale of its interest on the El Gachi property in Sonora, to First Majestic Silver Corp. for total consideration of US$2.5 M plus VAT. The company made payments to JMET LLC (US$0.75 M) and Minera Hochschild Mexico (US$0.5 M + VAT), leaving a non-interest balance of US$1.5 M owing to JMET related to previous restructuring fees. Having divested El Gachi to First Majestic and the San Felipe project to Americas Silver, the company is now to focus on its production assets, The Veta Grande project in Zacatecas and the Rosario project in San Luis Potosi.
  • Golden Minerals Co. announced that Minera Hecla S.A. has exercised its right to extend the lease of Golden’s oxide mill in Durango, through December 2018. At HECLA’s anticipated average 400 tonnes per day production rate, Golden anticipates net cash of approximately $0.4 M per month.


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 hydrothermal breccia hosted in intrusive rocks stands out in a stream polished face, located in the Soconusco region of Chiapas. Photo by Jorge Cirett.

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