During the 16^th week of the year (April 17^th to April 23^rd, 2017), at least 23 press releases were announced by companies working in Mexico. ON EXPLORATION, Riverside and Centerra commenced a drilling program in Sonora, while Evrim provided an update on work by First Majestic on its property, also in Sonora. In Chihuahua Kootenay announced its incoming drilling program is to focus on the expansion of the current resource. With three newly acquired projects in Guerrero and Oaxaca, Oz Minerals is to start exploration in Mexico. In Zacatecas Alset has started a drilling program for lithium, whereas in Sinaloa Santana Minerals released diamond saw trench results from two prospects. ON MINING, Fortuna Silver, Premier Gold, Sierra Metals, McEwen Mining, First Majestic and Hecla Mining presented first quarter 2017 production results. ON FINANCING, Prospero Silver secured a C$1.5 M strategic investment from Fortuna Silver, and Capstone Mining amended its senior secured corporate revolving credit facility. ON RESOURCES AND DEVELOPMENT, No relevant news this week. ON DEALS AND CORPORATE ISSUES, Fortuna Silver still is under a management cease trade order (MCTO), Timmins Gold is to change name to Alio Gold, Oz Minerals entered into an earn-in agreement for three properties with Acapulco Gold, and Source Exploration is to change name to Mexican Gold Corp.

ON EXPLORATION

• Riverside Resources Inc. and partner Centerra Gold Inc. have commenced a 2,000 m diamond drilling program at its Glor gold project in Sonora. The first hole is collared between two trenches that yielded 105 m @ 0.49 g/t Au and 84 m @ 0.53 g/t Au. To date 3.4 km of trenches have been excavated at the project. New trench sampling results include 9 m @ 0.57 g/t Au, 12 m @ 0.47 g/t Au, 18 m @ 0.45 g/t Au, 6 m @ 0.47 g/t Au, 9 m @ 0.64 g/t Au.
• Evrim Resources Corp. provided an update on recent activity at its Ermitaño project in Sonora, under option to First Majestic Silver Corp. Six additional holes have been completed by First Majestic, although the assays still have to be disclosed awaiting the completion of the company’s community engagement program. Holes 05, 06 and 07 intersected 9.0 to 19.8 m of vein stockwork, veins and healed milled breccia. Vein material and textures include colloform banded, chalcedonic and minor crystalline quartz, common adularia bands and quartz replacing bladed calcite, iron oxide after sulphide, manganese oxide and rare native silver.
• Kootenay Silver Inc. announced the incoming drill program at its La Cigarra property in Chihuahua is to begin in two weeks. The program will focus on the expansion of the resource by first targeting an 800 m gap between Las Venadas zone and the south end of the resource on Las Carolinas zone.
• OZ Minerals entered into an earn-in agreement with Acapulco Gold Corp. to explore three projects in southern Mexico: Zaachila, Riqueza Marina and Zapotitlán in Oaxaca. Under the agreement Oz is to make a first-year in-ground expenditure of US$450 K on detailed geological mapping, geochemistry and geophysics. Exploration is to commence immediately and drilling is expected to commence in the second half of 2017.
• Alset Energy Corp. started drilling at its lithium property La Salada salar in Zacatecas. Two deep holes will test for brine horizons, sediment composition and depth to basement, followed by a shallow subsurface sampling.
• Santana Minerals Ltd. released diamond saw trenching results at the La Plata prospect and diamond saw trenching results at the Santa Eduviges prospect, both within its Cuitaboca project in Sinaloa. Results include 2 m @ 78 g/t Ag; 1 m @ 1,995 g/t Ag; 5 m @ 242 g/t Ag; 7 m @ 131 g/t Ag at La Plata, and 3 m @ 2.9 g/t Au; 5 m @ 95 g/t Ag; 2 m @ 176 g/t Ag; 4 m @ 178 g/t Ag at Santa Eduviges.

ON MINING

• Fortuna Silver Mines Inc. announced first quarter 2017 production results, including figures from its San Jose mine in Oaxaca. During the period 267.3 K tonnes were milled at 3,108 tonnes per day (tpd) rate, with an average grade 226 g/t Ag, 1.67 g/t Au and a recovery rate of 92.2% Ag, 91.3% Au, to produce 1.79 M Oz Ag.
• Premier Gold Mines Ltd. presented production results for the first quarter 2017, including figures from its Mercedes mine in Sonora, where 22,164 Oz Au and 88,572 Oz Ag were produced in the period.
• Sierra Metals Inc. reported first quarter 2017 production results, including figures from its Mexican operations. At Bolivar in Chihuahua, 243.9 K tonnes were processed (2,788 tpd) @ 1.03% Cu, 15 g/t Ag, 0.20 g/t Au, recovering 81.5% Cu, 78.5% Ag, 52.5% Au to produce 4.5 M Lb Cu, 94 K Oz Ag, 840 Oz Au. At Cusi, also in Chihuahua, 34.5 K tonnes were processed (395 tpd) @ 146 g/t Ag, 0.25 g/t Au, 1.2% Pb, 1.2% Zn, recovering 64.2% Ag, 57.9% Pb, 37.9% Zn to produce 104 K Oz Ag, 150 Oz Au, 761 K Lb Pb.
• McEwen Mining Inc. reported production for the first quarter 2017, including figures from its El Gallo mine in Sinaloa, where 9,808 Oz Au were produced. The gold grade at the mine is projected to increase on the second half of 2017. At the end of the period the company was debt-free, with $28 M in cash, $8 M of precious metals and $16 M of marketable securities.
• First Majestic Silver Corp. announced first quarter 2017 production results for its six mines in Mexico: Santa Elena in Sonora, La Encantada in Coahuila, La Parrilla in Durango, Del Toro in Zacatecas, San Martin in Jalisco and La Guitarra in Estado de Mexico. Figures on the next table:

• Hecla Mining Co. disclosed preliminary production for the first quarter of 2017, including figures from its operation at San Sebastian in Durango, where 750.8 K Oz Ag and 6,284 Oz Au were produced, with the mill working at 407 tpd. The mill is leased for 2018 and transition from open pit to underground mining is expected by the end of 2017. “Recent definition drilling on the Middle Vein has shown better continuity of high-grade within the reserve area and exploration drilling continues to define new high-grade material in the vicinity of the mine along the Middle and East Francine veins.” Cash, cash equivalents and short-term investments amount to $213 M.

ON FINANCING

• Prospero Silver Corp. secured a C$1.5 M strategic investment from Fortuna Silver Mines Inc. Fortuna is to purchase Prospero shares for the amount cited (via private placement), and Prospero will allocate C$1.2 M to drilling selected projects and C$300 K to generative efforts in Mexico. By spending US$3 M in exploration of a selected property, Fortuna can a) Form a 51:49 joint venture on the selected property, b) Earn in a further 19% by spending further US$5 M in exploration on the selected property.
• Capstone Mining Corp. amended its senior secured corporate revolving credit facility, reducing the credit limit to $350 M, and a staged reduction to $275 M by 2019. Capstone repaid $10 M on April 19, 2017, reducing drawn debt to $298 M while the cash balance is over $100 M..

ON RESOURCES AND DEVELOPMENT

• No relevant news during the period.

ON DEALS AND CORPORATE ISSUES

• Fortuna Silver Mines Inc. reports that the SEC’s review of the company’s 2015 annual filings is ongoing and it continues to work diligently and devote all necessary resources to address the SEC comments. The company is under a management cease trade order (MCTO), and expects to be able to complete the filing by May 5, 2017.
• Timmins Gold Corp. is proposing to change its name to Alio Gold Inc. If the change is approved, it expects to begin trading on both the TSX and the NYSE MKT under the ticker ALO on May 16, 2017 (“The word Alio in Latin means ‘to go in a different direction’”).
• OZ Minerals entered into an earn-in agreement with Acapulco Gold Corp. to explore three projects in southern Mexico: Zaachila, Riqueza Marina and Zapotitlán in Oaxaca. Under the agreement Oz is to make a first-year in-ground expenditure of US$450 K on detailed geological mapping, geochemistry and geophysics. Exploration is to commence immediately and drilling is expected to commence in the second half of 2017.
• Source Exploration Corp. has filed documents to change its name to Mexican Gold Corp.

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, orogenic style quartz veining in sandstones, Central Chiapas. Photo by Jorge Cirett.