During the 15th week of the year (April 10th to April 16th, 2017), at least 22 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, Goldcorp and Fresnillo PLC presented a year-on-year reduction on their silver reserves. ON EXPLORATION, Source Exploration released high-grade drilling results from its property in Veracruz, while Canuc presented a description of mineralization styles present on its property in Sonora. ON MINING, Great Panther, Endeavour Silver, Capstone Mining, Avino Silver and GoGold presented operating and/or financial results for Q1, 2017. Primero Mining resolved the union stoppage at its mine in Durango. ON FINANCING, Starcore repaid outstanding secured bonds for CDN$4.5 M. ON RESOURCES AND DEVELOPMENT, Timmins Gold announced advance in paperwork filing to obtain the mining permit at Ana Paula, Guerrero. Sierra Metals presented updated mineral reserve and mineral resource estimates on its Bolivar and Cusi mines in Chihuahua. Gold Resource presented additional high-grade drilling results from the Switchback system at its El Aguila operations in Oaxaca. Marlin Gold disclosed more high-grade drilling results on La Trinidad mine in Sinaloa. Avino completed a new PEA on the reprocessing of mine tailings at its Avino mine in Durango. Leagold presented high-grade drilling results from the oxide zone from the Bermejal deposit at its Los Filos mine in Guerrero. ON DEALS AND CORPORATE ISSUES, Colibri shares remain halted. Bacanora Minerals and Hawa entered into a strategic partnership in which the latter is to hold 10% of Bacanora, and have the right to buy up to 100% of the lithium carbonate production. Arian Silver optioned three lithium properties in Zacatecas.
ON MEXICO ISSUES
- Silver reserves decreased for the two main producers in Mexico. Goldcorp and Fresnillo ended 2016 with fewer reserves than in 2015. Goldcorp reserves moved down from 625 M Oz in 2015, to 611 M Oz in 2016. The decrease was mainly due to the sale of Los Filos (in Guerrero), with 9.73 M Oz Ag. Fresnillo PLC reported 548 M Oz Ag in 2015, and 530 M Oz Ag in 2016. The reduction came from San Julian (in Chihuahua), with 11.7 M Oz, Saucito (in Zacatecas) with 7.49 M Oz and Cienega (in Durango) with 2.93 M Oz.
- Source Exploration Corp. released high-grade Au-Cu-Ag drilling results from El Dorado – Juan Bran zone at its Las Minas project in Veracruz. Results from nine infill and extension holes were disclosed, including 24 m @ 1.6 g/t Au, 10 g/t Ag, 1.64% Cu; 44 m @ 0.8 g/t Au, 3 g/t Ag, 0.93% Cu; 26 m @ 0.8 g/t Au, 3 g/t Ag, 0.59% Cu; 36 m @ 2.1 g/t Au, 2 g/t Ag, 0.84% Cu; 8 m @ 0.7 g/t Au, 3 g/t Ag, 0.36% Cu; 14 m @ 1.2 g/t Au, 7 g/t Ag, 1.01% Cu.
- Canuc Resources Corp. disclosed work done by the previous operator at its San Javier project in Sonora, during 2012. A total of nine prospects were identified in a mineral corridor greater than 3 Km in length and 200 m in width. Three styles of mineralization occur: vein and vein-breccia zones up to 4.5 m in width, alteration zones associated to the margins of felsic to intermediate dykes (up to 11 m in width), and quartz stockwork breccia zones that attain widths of up to 31 m.
- Great Panther Silver Ltd. announced production results from its operations for the first quarter of 2017. At the Guanajuato Mine Complex 82.45 K tonnes were milled @ 155 g/t Ag, 2.3 g/t Au, for the production of 365 K Oz Ag and 5,177 Oz Au, having recoveries of 88.8% for silver and 85.0% for gold. The Topia operations in Durango have been suspended during the quarter for plant upgrades and installation of the tailings handling equipment. SEMERNAT’s response for the phase II TSF permit is expected before the end of April. Mining has continued since the mill was shut down in early December 2016.
- Endeavour Silver Corp. reported first quarter 2017 production results from its three mines in Mexico. At Guanceví in Durango, 87.6 K tonnes were processed (973 tonnes per day, or tpd) @ 213 g/t Ag, 0.49 g/t Au to produce 530.7 K Oz Ag, 1,192 Oz Au. At Bolañitos in Jalisco 94.3 K tonnes of ore were processed (1,048 tpd) @ 66 g/t Ag, 2.4 g/t Au, to render 168.7 K Oz Ag, 6,218 Oz Au. At El Cubo in Guanajuato, 121.3 K tonnes processed (1,347 tpd) @ 111 g/t Ag, 1.31 g/t Au, producing 377.6 K Oz Ag, 4,314 Oz Au. Recoveries stood between 84.5% to 88.5% for Ag and 84.4% to 86.4% for Au at the three sites.
- Capstone Mining Corp. disclosed production results for the three months ended March 31, 2017, including figures from its operations in Mexico. At Cozamin, in Zacatecas, 236.8 K tonnes were mined, 234.2 K tonnes milled (2,602 tpd) @ 1.84% Cu, 0.78% Zn, 0.07% Pb, 46 g/t Ag, for the production of 4,064 tonnes of copper. Recoveries stood at 95.9% Cu, 68.8% Zn, 12.3% Pb, 76% Ag.
- Avino Silver & Gold Mines Ltd. announced production results from its Avino property in Durango for the first quarter 2017. At the Avino mine 102 K tonnes were mined, 116.5 K tonnes were milled @ 61 g/t Ag, 0.5 g/t Au, 0.44% Cu to produce 195.5 K Oz Ag, 1,252 Oz Au, 1.02 M Lb Cu, achieving recoveries of 86.1% Ag, 67.4% Au, 90.9% Cu. At the nearby San Gonzalo mine 23.2 K tonnes were mined, 20.1 K tonnes were milled @ 229 g/t Ag, 1.19 g/t Au, to produce 124.5 K Oz Ag, 585 Oz Au, with metal recoveries at 84% for silver and 76% for gold.
- GoGold Resources Inc. reported production for the quarter ended March 31, 2017. At Parral, Chihuahua, 278.2 K Oz AgEq were produced (39% increase on the previous quarter), while production at Santa Gertrudis in Sonora was 114.5 K Oz AgEq, a 29% reduction on the last quarter, as mining transitioned from very high grade toll milling process to a toll heap leach.
- Primero Mining Corp. resolved the work stoppage of unionized employees that began on February 15th, 2017. Operations are to resume on its San Dimas mine in Durango on Tuesday April 18th, 2017. The new work contract with the Union includes a 7.5% pay raise, adjustments to short term production bonuses and the change from three 8-hour daily shifts to two 10.5-hours daily shifts.
- Starcore International Mines Ltd. has repaid outstanding secured bonds in the aggregate principal amount of CDN$4.5 M. After the payment the company has an approximate cash balance of CDN$10.1 M (San Martin, Queretaro).
ON RESOURCES AND DEVELOPMENT
- Timmins Gold Corp. received the environmental impact assessment (MIA) for its Ana Paula Project in Guerrero. “Following the acceptance of the MIA, the Company anticipates beginning a series of applications for the Change of Land Use (ETJ) Permits which are the final permits required for the construction of the mine. The Company expects to complete the permitting and feasibility study work over the next 12 months in advance of construction starting in Q2 2018.”
- Gold Resource Corp. released additional high-grade drill intercepts on the Switchback ore body at its El Aguila operations in Oaxaca. The Switchback system is comprised of multiple high-grade polymetallic epithermal veins, and remains open in all directions. Intercepts include 6.3 m @ 2.47 g/t Au, 126 g/t Ag, 0.7% Cu, 2.4% Pb, 7.5% Zn; 5.8 m @ 4.87 g/t Au, 34 g/t Ag, 0.3% Cu, 2.1% Pb, 7.2% Zn; 7.7 m @ 3.87 g/t Au, 301 g/t Ag, 0.5% Cu, 2.1% Pb, 2.8% Zn; 4.3 m @ 9.97 g/t Au, 51 g/t Ag, 1.2% Cu, 1.7% Pb, 4.5% Zn; 8.0 m @ 1.82 g/t Au, 69 g/t Ag, 0.4% Cu, 0.7% Pb, 5.0% Zn; 21.9 m @ 0.78 g/t Au, 85 g/t Ag, 0.5% Cu, 2.1% Pb, 5.6% Zn.
- Marlin Gold Mining Ltd. reported that a recent drill hole in the southern part of the high-grade HS zone intercepted 15.45 m @ 15.55 g/t Au, and a second interval of 12.55 m @ 5.81 g/t Au. The second interval confirms a mineralized zone outside the current pit limit.
- Avino Silver & Gold Mines Ltd. has completed an updated preliminary economic assessment (PEA) of reprocessing the Avino mine tailings in Durango. The PEA highlights include a pre-tax NPV(8%) of US$40.5 M, pre-tax IRR of 48.4%, a two-year pay-back period, a total expenditure of US$28.5 M and a seven-year mine life by processing 3.12 M tonnes of oxide tailing materials.
- Sierra Metals Inc. updated mineral reserve and mineral resource estimates at its Bolivar mine in Chihuahua, to September 2016. Mineral reserves stand at 4.3 M tonnes @ 17.5 g/t Ag, 0.85% Cu, 0.31 g/t Au; Indicated mineral resources (which include mineral reserves) stand at 9.3 M tonnes @ 18.1 g/t Ag, 0.90% Cu, 0.30 g/t Au; Inferred mineral resources stand at 9.05 M tonnes @ 17.9 g/t Ag, 0.86% Cu, 0.33 g/t Au. The contained metal is 5.4 M Oz Ag, 184.9 M Lb Cu, 91.0 K Oz Au in indicated resources and 5.2 M Oz Ag, 171.6 M Lb Cu, 97.0 K Oz Au in inferred resources. A 20,000 meter drilling program is ongoing, focusing in the addition of resources in several areas.
- Leagold Mining Corp. reported high-grade drilling results from the oxide zone at the Bermejal deposit, where gold iron-oxide skarn mineralization is located along contacts between intrusive and carbonate host rocks. True width (TW) intercepts include 11.25 m @ 8.0 g/t Au, 7.98 m @ 19.5 g/t Au, 21.55 m @ 13.0 g/t Au, 8.63 m @ 15.1 g/t Au; 11.45 m @ 10.8 g/t Au.
- Sierra Metals Inc. updated its mineral resource estimate at the Cusi mine, in Chihuahua. The indicated resources stand now at 1.99 M tonnes @ 237 g/t Ag, 0.53% Pb, 0.53% Zn, 0.16 g/t Au, for a total contained metal of 15.2 M Oz Ag, 23.3 M Lb Pb, 23.3 M Lb Zn, 10.1 K Oz Au, while the inferred resources stand at 1.2 M tonnes @ 305 g/t Ag, 0.51% Pb, 0.64% Zn, 0.14 g/t Au, for a total metal content of 11.8 M Oz Ag, 13.5 M Lb Pb, 17.1 M Lb Zn, 5.6 K Oz Au. This update does not include any data from a 15,000 metre drilling program focused on the Santa Rosa de Lima structure.
ON DEALS AND CORPORATE ISSUES
- Colibri Resources Corp. announced that its shares remain halted pending receipt and review of acceptable documentation regarding the acquisition of Canadian Gold Resources.
- Bacanora Minerals Ltd. entered into a strategic partnership with Hawa Co, Ltd. (one of the largest traders of battery chemicals in the Asian region). “The Agreement is comprised of both an initial 10% equity investment in Bacanora and an Off-take Agreement for up to 100% of the battery grade lithium carbonate (“Li2CO3”) produced at the Sonora Lithium Project (“Sonora” or the “Project”). The Company is targeting to produce 17,500 tonnes of Li2CO3 per annum (“Stage 1”), commencing in 2019. After two years of producing at this level, the Company plans to lift production to 35,000 tonnes per annum (“Stage 2”)1.”
- Arian silver Corp. has entered into an option agreement with Comercializadora Gacu S.A. de C.V. (privately held) to acquire three lithium exploration projects in Zacatecas for an aggregate consideration of up to US$200 K payable in instalments over the next 12 months.
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, strong phyllic alteration in a boulder (probably an intrusive rock) collected during stream sediment sampling in Chiapas. The scale below is on centimeters. Photo by Jorge Cirett.