Highlights on the Second Week of June, 2017. Mineral Exploration in Mexico

During the 23rd week of the year (May 5th to June 11th, 2017), at least 25 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, the Mexican government owes more than US$360 M on tax returns to Canadian mining companies. ON EXPLORATION, in Sonora Riverside released assays from recent sampling at Cecilia; Colibri received drill results from its partner at the Pitaya property; and Millrock is to explore the Picacho project. In Chihuahua Sierra Metals released high-grade drilling results from a new structure at its Cusi property; Golden Goliath is to start a field program at San Timoteo and Harvest Gold is to begin a field program at the recently optioned Cerro Cascaron property. In Sinaloa Santana commenced an RC drill program at its Cuitaboca project. Defiance released results from the first hole of the season at the San Acacio property. In Jalisco Plata Latina announced an incoming drill program at Vaquerias.  ON MINING, Pan American Silver continues the expansion at La Colorada and Dolores mines in Zacatecas and Chihuahua. ON FINANCING, New Gold announced the redemption of $200 M in senior notes, and Agnico Eagle made a $9.76 M strategic investment in Candelaria. ON RESOURCES AND DEVELOPMENT, US Antimony started pilot production at Los Juarez pit in Queretaro, and Oceanus disclosed high grade intercepts from a step-out hole in El Tigre, Sonora. ON DEALS AND CORPORATE ISSUES, Endeavour Silver bought the Calicanto and Veta Grande properties from Arian Silver and Impact Silver respectively. Candelaria issued 4.6 M shares to Minera Apolo as partial payment for 65 concessions in Zacatecas, Durango and San Luis Potosi. Mexican Gold made a definitive agreement to acquire three important concessions within its Las Minas project in Veracruz. Millrock optioned El Picacho project in Sonora, and the property has now become a “designated project” under its alliance with Centerra.

ON MEXICO ISSUES

  • The Mexican government plays deaf on tax returns to Canadian companies. The SAT (IRS equivalent) holds more than US$360 M on tax returns to six Canadian mining companies, including US$230 M to Goldcorp, which declined to comment. Other affected companies include Torex Gold (US$66.5 M), Alamos Gold (US$26 M), Agnico Eagle (US$18 M) Endeavour Silver (US$15.6 M) and McEwen Mining (US$6.2 M). The issue was raised by the mining companies with Canada’s Minister of Natural Resources, Jim Carr, who contacted the Secretaria de Economia regarding the VAT tax returns. The matter is to be “investigated”.

ON EXPLORATION

  • Sierra Metals Inc. completed the first phase of systematic drill campaign on the Santa Rosa de Lima structure at its Cusi mine in Chihuahua. The drilling encompassed 36 holes in an approximate grid covering an area 1,000 m long by 400 m depth, with average true width and grade of 4.1 m @ 371 g/t AgEq. Intercepts include 12.0 m @ 757 g/t Ag; 1.8 m @ 709 g/t Ag; 2.0 m @ 1,152 g/t Ag; 3.5 m @ 414 g/t Ag; 3.2 m @ 1,034 g/t Ag; 4.3 m @ 690 g/t Ag; 11.0 m @ 575 g/t Ag. A 24 hole, 13,200 m definition drilling program is to be completed during June. The 12 km long Santa Rosa de Lima structure presents no hydrothermal alteration on the surface, and presents a NW-SE orientation that contrasts with the NE-SW orientation of the structures currently being mined in the district.
  • Santana Minerals Ltd. has commenced a reverse circulation (RC) drilling program at its Cuitaboca property in Sinaloa. The 16 hole, ~2,500 m RC program is to test the vertical and horizontal continuity of mineralisation across the Las Animas and Evangelina zones of the Mojardino prospect.
  • Riverside Resources Inc. released assay results from the first phase exploration program at its Cecilia project in Sonora. The company is targeting epithermal Au-Ag mineralization hosted by a felsic flow-dome complex. The sampling to date has concentrated at the North Breccia and Central zones, where 36% of the samples assayed more than 0.5 g/t Au. Rock sample results are up to 113.7 g/t Au, 288 g/t Ag; 58 g/t Au, 207 g/t Ag; 8.42 g/t Au, 88 g/t Ag. More than 20% of the samples assayed more than 200 g/t Ag, with the highest one returning 310 g/t Ag.
  • Golden Goliath Resources Ltd. is about to start the 2017 field program at its San Timoteo project in Chihuahua, which is deemed to expand “the Terraspec coverage and acquire and incorporate geological, geochemical and structural data from other workings to select specific drill targets in areas further away from the San Martin mine targets”.
  • Colibri Resource Corp. announced drill results received from its JV partner Agnico Eagle Mines Ltd. from its Pitaya property in Sonora, on which Agnico currently holds a 66% interest. Drill results cover 1,543 m in six holes, with drilling on going and further 4,700 m of drilling to be completed. Results include 5.4 m @ 0.5% Cu; 3.6 m @ 0.81 g/t Au; 1.1 m @ 2.2 g/t Au; 3.3 m @ 0.48 g/t Au; 6.4 m @ 0.32 g/t Au; 2.2 m @ 21 g/t Au, 57 g/t Ag; 1.0 m @ 0.48 g/t Au, 34 g/t Ag, 3.1% Cu; 7.0 m @ 0.5 g/t Au; 1 m @ 2.4 g/t Au; 7 m @ 0.36 g/t Au; 4 m @ 0.94 g/t Au.
  • Defiance Silver Corp. released results from the first hole of the ongoing drill program at the San Acacio project in Zacatecas. The drill hole targeted the Esperanza zone and intersected high grade silver, with 27 .03 m of hydrothermal breccia and veins assaying 203 g/t AgEq. The 27.03 m intercept @ 148 g/t Ag, 0.29 g/t Au, 0.1% Pb, 0.7% Zn includes 7.58 m @ 213 g/t Ag, 0.3% Zn; 5.00 m @ 231 g/t Ag, 0.51 g/t Au, 0.4% Pb, 1.7% Zn and 6.05 m @ 122 g/t Ag, 0.74 g/t Au, 1% Zn.
  • Millrock Resources Inc. is to explore the El Picacho project as a designated project on its strategic alliance with Centerra Gold Inc. in Sonora. The project is an orogenic gold target, where Jurassic rocks are juxtaposed in a thrust fault relationship with much older Precambrian age rocks, being located 18 km W-SW from Alio Gold’s San Francisco mine.
  • Harvest Gold Corp. is to start a first phase two-month field program on the recently optioned Cerro Cascaron project with a budget of $225 K, including the opening of two historic adits, detailed mapping, sampling and prospecting of the main vein field, La Cascarita, and the eastern extension across a river valley.
  • Plata Latina Minerals Corp. announced that Fresnillo PLC has initiated drilling at the Naranjillo property in Guanajuato, which it optioned from Plata Latina. The focus of the company is now the Vaquerias project, where previous drilling intersected up to 727 g/t Ag, 0.24 g/t Au over 0.55 m. Drilling is to re-initiate at Vaquerias, Jalisco, in late summer of 2017.

ON MINING

  • Pan American Silver Corp. is continuing with the expansion at its La Colorada and Dolores mines. At La Colorada (Zacatecas) the goal is to rise mine production to 1,800 tonnes per day (tpd) and 7.7 M Oz Ag and significant Pb and Zn. At Dolores (Chihuahua), the goal is to load 17.6 – 18 K tpd on the heap leach pads to obtain 4 – 4.5 M Oz Ag and 109.1 – 115 K Oz Au.

ON FINANCING

  • New Gold Inc. completed the previously announced redemption of its outstanding $300 M 7.0% senior notes due 2010. “The redemption was funded from the net proceeds of its recent issue of $300 million aggregate principal amount of 6.375% Senior Notes due in 2025 and cash on hand.” (San Pedro, San Luis Potosi).
  • Candelaria Mining Corp. announced that Agnico Eagle Mines Ltd. is making a strategic investment of $9.76 M in Candelaria. “Upon completion of the Private Placement, Agnico will own approximately 9.95% of the common shares of Candelaria.”

ON RESOURCES AND DEVELOPMENT

  • United States Antimony Corp. started pilot production from the Los Juarez pit at it Los Juarez property in Queretaro. Approximately 400 metric tons were trucked to the Puerto Blanco mill in Guanajuato. “The permit for a cyanide leach circuit for the Puerto Blanco mill tailings has been reviewed by SEMARNAT (Mexican equivalent of EPA), and USAC is changing the location and design of the tailings pond to comply with their request.”
  • Oceanus Resources Corp. reported a high grade drill intercept from a step-out hole at its El Tigre property in Sonora. The hole in the Protectora vein intersected 3.15 m @ 10.1 g/t Au, 1,991 g/t Ag, including 0.85 m @ 37.2 g/t Au, 7,339 g/t Ag, and a deeper intercept of 1.5 m @ 1,107 g/t Ag. “The mineralized zone consists of several vuggy quartz veins and veinlets carrying galena, sphalerite, chalcopyrite, stromeyerite and pyrite.” This hole is collared some 800 m North of the El Tigre mine, from where the unmined Protectora vein extends for 1,500 m to the North.

ON DEALS AND CORPORATE ISSUES

  • Endeavour Silver Corp. has acquired 100% interest in the Calicanto and Veta Grande properties in Zacatecas. Calicanto was bought from Arian Silver Corp. for US$400 K, is subject to a 3% royalty and covers five >1 km long veins, 1-3 m thick and grades of 100-300 g/t Ag, 1-3 g/t Au, 1-3% Pb+Zn. The Veta Grande property (10 concessions, 152 hectares) was bought from Impact Silver Corp. for US$500 K in shares, covering six Ag-Au-Pb-Zn veins and 14 hectares of surface land on which an idle 200 tpd processing plant is located.
  • Candelaria Mining Corp. announced that it issued 4.6 M shares to Minera Apolo S.A. de C.V., meeting the obligations required to complete the acquisition of 60% of the shares of Minera Apolo. Candelaria holds a right of first refusal to purchase the remaining 40% of the shares of Minera Apolo, which are currently held by four individuals resident in Mexico. Minera Apolo holds 65 claims over 20,475 has in the states of Zacatecas, Durango and San Luis Potosi, including properties in the Pinos district, Lucifer, Km66, Guadalcazar, Cascabel, El Gato and the Noria tailings.
  • Mexican Gold Corp. entered into a definitive purchase and sale agreement to acquire 100% interest in the Pepe, Pepe Tres and San Jose concessions at its Las Minas project. The concessions form the core of the Las Minas property, encompassing six strongly mineralized zones. The agreement states a $433 K payment (plus VAT) upon execution, six monthly equal payments of $22 K (plus VAT) commencing on December 2017 and a final payment of $867 K (plus VAT) on December 2018. The vendors retain a 1.5% NSR, of which one third can be bought by US$500 K, with Mexican Gold having the right of first refusal on the rest.
  • Millrock Resources Inc. entered an option agreement to purchase the El Picacho project in Sonora. The project was identified to Centerra Gold Inc. by Millrock, and it is now to become a “designated project” under the strategic alliance between the companies. An initial payment of US$21,375 has been made on the US$1.723 M option payments due over a four year period. “Seven equal option payments of US$21,375 will be due at six-month intervals. A final option payment of US$1,552,000 would be made to complete the purchase of the mineral rights.”
  • Evrim Resources Corp. optioned its Cerro Cascaron project in Chihuahua to Harvest Gold Corp., which will have the right to earn up to 80% interest. Under the agreement Harvest can earn 70% by investing $6 M in the property, making a 900 K payment and issuing 2 M shares to Evrim over a four year period. Harvest can earn an additional 10% by paying $200 K (or 200 K shares, Evrim’s election), fund a 43-101 compliant feasibility study (FS) and make further $2 M expenditures.

Content like what you have just read can be seen at https://gambusinoprospector.com/ and at LinkedIn’s Mexico Mineral Exploration Group.

Winding dirt road in the Sierra Madre, at Cañada del Güerachi, Chihuahua. Photo by Jorge Cirett.

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