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

During the 14th week of the year (April 3rd to April 9th, 2017), at least 23 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, Sonora congressmen presented a proposal to reinstate the deductibility of exploration expenses, a move highly needed by the country to recover some ground in the investment favorability ranking.  ON EXPLORATION, Source Exploration continues drilling in Durango, Galore Resources has a new model for its Durango project, and is working on defining targets by mapping and sampling, and Canasil presented drilling results from its project in Durango/Zacatecas. ON MINING, Coeur Mining, US Antimony, Marlin Gold and Timmins Gold presented operating and/or financial results for Q1 2017. ON FINANCING, Marlin Gold continues to pay its debt in advance, Geologix intends to raise up to $3 M, Alamos Gold has paid a substantial amount and is now debt free, and Wealth Minerals closed its financing, having raised $4.89 M. ON RESOURCES AND DEVELOPMENT, Kootenay Silver presented drilling results from its project in Sonora, Marlin Gold presented drilling results from the bottom of the pit in its Sinaloa operations, Endeavour Silver updated resource figures in Jalisco, Almaden presented PFS results from its project in Puebla and Levon is planing a drill program seeking to define a sweeter core for its project in Chihuahua.  ON DEALS AND CORPORATE ISSUES, Plata Latina confirms the optioning of its property in Guanajuato, Colibri reaches a definitive agreement on the acquisition of Canadian Gold, Fortuna Silver provides an update on its ongoing  regulatory process, Alset Energy changes name to Alset Minerals and Leagold completes the acquisition of the Los Filos project from Goldcorp in Guerrero.


  • Congressmen from Sonora presented a proposal to reinstate the deductibility of exploration expenses, aiming to restore the deteriorated attractiveness index for mining investment in Mexico. The governor of Sonora, C. Pavlovich supports the move that can foster new projects, raise production and generate more resources for the Mining Fund to benefit the inhabitants of mining zones in the country. The congressmen are Susana Corella, Sylvana Beltrones, Abel Murrieta, Prospero Ibarra and Ulises Cristopulos, all five from the PRI.


  • Source Exploration Corp. has completed to date 2,290 m of drilling (out of a 2,800 m program) in 17 holes at its Las Minas project in Veracruz, with samples for nine holes having been sent for assay. “The program consists of infill/extension as well as step-out drilling to expand the mineralized footprint of the El Dorado/Juan Bran zone.” This zone is 420 m long and 650 m down dip, and from 8 to 60 m in thickness in drill intercepts. An initial mineral resources estimate for the mineralized zone is planned for the second quarter of the year.
  • Galore Resources Inc. is nearing the completion of a geological mapping and sampling program on the San Jose and Los Gemelos claims, part of its Dos Santos project in Zacatecas. A new exploration model is developing, with a number of drill holes being planned to test new exploration targets. An estimated 3,500 m drill program is envisaged beginning on the San Jose claim.
  • Canasil Resources Inc. presented drilling results for two holes from its La Esperanza project in Durango and Zacatecas. One hole intercepted 4.92 m (True Width, or TW) @ 257 g/t Ag, 0.64% Zn, 0.63% Pb; while the other intersected 2.02 m @ 89 g/t Ag, 1.8% Zn, 1.0% Pb; and 1.71 m @ 225 g/t Ag, 1.3% Zn, 0.6% Pb; and 5.81 m @ 204 g/t Ag, 1.8% Zn, 1.5% Pb. The first hole is a 60 m step-out to the southeast, extending the length of La Esperanza vein to 400 m, while the second hole intercepted several mineralized intervals within a 32 m wide structure. The bladed calcite textures encountered suggest the upper parts of an epithermal system.


  • Coeur Mining Inc. announced first quarter 2017 production results, including figures from its operations at Palmarejo, Chihuahua, where 360.4 K tonnes of ore were milled at a grade of 150.5 g/t Ag, 2.80 g/t Au, to produce 1.53 M Oz Ag, 30,792 Oz Au. Metal recoveries were 86.5% and 93.7% respectively.
  • United States Antimony Corp. presented production figures for the first quarter of 2017, including from its operations in Mexico. At Soyatal, in Queretaro, and Wadley in San Luis Potosi, 200 K Lb of contained antimony were produced and sent to the Madero smelter, where 132,092 Lb were processed and shipped to the US as finished metal. The antimony price has recently increased from $3.33 to $3.97 per Sb pound.
  • Marlin Gold Mining Ltd. provided and operational update for the first quarter of 2017 on its La Trinidad mine in Sinaloa, with 355 K tonnes of ore @ 1.74 g/t Au, bearing 19,844 Oz of Au, being crushed and staked on the heaps.
  • Timmins Gold Corp. reported Q1 2017 production of 26,048 Oz Au, 11,899 Oz Ag at its San Francisco mine in Sonora. 1.96 M tonnes of ore were processed @ 0.48 g/t Au, and 3.27 M tonnes of waste moved, for a strip ratio of 1.67. Ore came from three pits: San Francisco Main, La Chicharra and Las Barajitas. As the San Francisco pit undergoes more stripping, ore from the last two pits will supply the operations during the second and third quarters.


  • Marlin Gold Mining Ltd. repaid a further US$2.0 M of principal from its unsecured facility to affiliates of Wexford Capital LP, Marlin’s controlling shareholder.  Total outstanding principal of the Facility now stands at US$30.0 million, down from US$37.5 million at year end 2016. Cash and refined gold stands at approximately $6.7 M, with a payable balance of $4.2 M (La Trinidad, Sinaloa).
  • Geologix Explorations Inc. is to offer shares and warrants of the company, seeking to raise up to $3 M on a private placement (Tepal, Michoacan).
  • Alamos Gold Inc. “has completed the redemption of its outstanding US$315 million 7.75% Senior Secured Second Lien Notes (the “Notes”) due in 2020. This will result in annual interest savings of US$24.4 million. The Notes were redeemed at a price of 103.875% of the principal amount plus accrued interest to the date of redemption. The Notes were retired with net proceeds of US$239 million from the equity financing completed in February 2017 along with existing cash”. The company is again debt-free (Mulatos, Sonora).
  • Wealth Minerals Ltd. closed the previously announced non-brokered private placement, for gross proceeds of $4.89 M (Coronado, Chihuahua)


  • Kootenay Silver Inc. reported high-grade drilling results from 6 remaining holes of the 2016 drill program at its La Negra property in Sonora, operated by partner Pan American Silver Corp. Four of the six holes were drilled on La Negra breccia, which is 600 m long and still open at depth, while the other two were testing another target. The next intercepts are from the drill holes at the La Negra breccia: 47.1 m @ 121 g/t Ag, 0.11 g/t Au, 0.26% Pb (including 13 m @ 216 g/t Ag, 0.18 g/t Au, 0.14% Pb); 40.85 m @ 194 g/t Ag, 0.06 g/t Au, 0.4% Pb (including 11.65 m @ 441 g/t Ag, 0.08 g/t Au, 1.0% Pb); 25 m @ 98 g/t Ag, 0.04 g/t Au, 0.17% Pb. The two drill holes testing the other target returned no significant results.
  • Marlin Gold Mining Ltd. disclosed drill results from the bottom of the pit at its La Trinidad mine in Sinaloa, following up high-grade blast-hole assays, and to investigate to depth the high grade HS zone. Results include: 6.5 m @ 2.59 g/t Au; 9.4 m @ 3.27 g/t Au; 10.2 m @ 2.68 g/t Au; 17.9 m @ 0.99 g/t Au; 17.7 m @ 1.21 g/t Au; 20.0 m @ 2.33 g/t Au; 7.0 m @ 3.45 g/t Au; 6.0 m @ 3.55 g/t Au.
  • Endeavour Silver Corp. reported an updated NI43-101 mineral reserve and resource estimate for its Terronera mine project in Jalisco. Reserves stand at 4.061 M tonnes @ 207 g/t Ag, 1.95 g/t Au, for 27 M Oz Ag, 255 K Oz Au. Indicated resources are 3.959 M tonnes @ 232 g/t Ag, 2.18 g/t Au, for 29.5 M Oz Ag, 277 K Oz Au, and Inferred resources stand at 0.72 M tonnes @ 309 g/t Ag, 1.48 g/t Au, for 7.1 M Oz Ag, 34 K Oz Au.
  • Almaden Minerals Ltd. reported results of the pre-feasibility study (PFS) for its Ixtaca deposit in Puebla. The report states an after-tax NPV(5%) of $310 M at IRR of 41%, an initial capital of $117 M and two years for payback. With the production of 88,780 Oz Au and 5.5 M Oz Ag during the first 9 years at cash cost $706 and AISC of $862 per gold equivalent ounce, and a total production of 1.04 M Oz Au, 70.9 M Oz Ag. The measured resource holds 42.45 M tonnes @ 0.57 g/t Au, 35.7 g/t Ag, the Indicated resource contains 83.37 M tonnes @ 0.45 g/t Au, 22.5 g/t Ag and Inferred resources stand at 47 M tonnes @ 0.3 g/t Au, 19.1 g/t Ag.
  • Levon Resources Ltd. is planning a drilling program on its Cordero project in Chihuahua. The plan envisages 5,000 m in 28 core holes, in close spaced infill drilling within the Felsic Dome portion of the resource defined in 2014.


  • Plata Latina Minerals Corp. has received approval from its shareholders and the TSX Venture Exchange on its option agreement with Metalurgica Reyna, S.A. de C.V. (Fresnillo PLC) regarding its Naranjillo property in Guanajuato. During a 36 month period Fresnillo is to pay US 1.45 M in installments (US$0.2 M already paid), invest US$3 M in the property, and further US$0.5 M and a 3% royalty to keep the property.
  • Colibri Resources Corp. “reached a definitive agreement with Ontop Capital Limited (the “Vendor”) regarding the acquisition of Canadian Gold Resources Ltd. (“CGR”) from the Vendor….” Colibri has agreed to issue 24.2 M shares at a price of $0.165 per share to the Vendor for an aggregate acquisition cost of $4.0 M (Pilar Gold project, Sonora?).
  • Fortuna Silver Mines Inc. provided an update on the ongoing regulatory review of the Company’s 2015 annual filings by the United States Securities and Exchange Commission (SEC), and announced a management cease trade order (MCTO) by the British Columbia Securities Commission and other Canadian provincial securities regulatory authorities. Fortuna is delayed in filing its annual audited financial statements and related MD&A for the years 2015 and 2016. The Company expects to be in a position to complete the SEC filing by May 5, 2017.
  • Alset Energy Corp. is changing its name to Alset Minerals Corp., while keeping its current stock symbol (TSXV: ION).
  • Leagold Mining Corp. has completed the acquisition of the Los Filos Gold mine in Guerrero, for US$350 M from Goldcorp Inc. Leagold has completed a C$179 million equity financing (US$133 million), US$50 million equity private placement, and US$150 million senior secured term loan. Post-closing, Leagold estimates its cash balance to be approximately US$76 million. Goldcorp shares in Leagold amount to 25.3%, and will be reduced to 22.9% once regulatory approvals come through.

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 in a coarse grained felsic intrusive rock, with monomictic rounded fragments suspended in a dark sulfide-carrying siliceous matrix, located in southern Chiapas. Photo by Jorge Cirett.

Coatan 100 Polarization

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