During the 26th week of the year (June 26th to July 2nd, 2017), at least 25 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, no relevant news. ON EXPLORATION, in Sinaloa, Santana Minerals reported drilling results from Cuitaboca; In San Luis Potosi Zenith Minerals started drilling for lithium; in Veracruz Almadex released more drilling results from a new zone at El Cobre; In Zacatecas, Galore terminated an unsuccessful drill program on the San Jose claim. ON MINING, Mexus Gold continues with the start-up of the Santa Elena mine in Sonora, Arian Silver presented financial results for 2016. Santacruz reached a high-grade zone on the Membrillo vein in San Luis Potosi. ON FINANCING, Alio Gold raised CDN$50 M; Minera Alamos closed a private placement for $5.4 M; Minaurum received $3.5 M from warrants; Wealth Minerals obtained $3.3 M on the first tranche of a non-brokered private placement; Santacruz is to run a non-brokered private placement for $5 M; Monarca Minerals settled a $463 K debt by issuing shares; Hecla announced a cash tender offer for its 6.875% senior notes, due 2025. ON RESOURCES AND DEVELOPMENT, Goldgroup informed the Switchback vein system in Oaxaca continues to grow; Oceanus released the full assays on a high-grade intercept at El Tigre, Sonora. ON DEALS AND CORPORATE ISSUES, Teck agreed to purchase the 21% interest held by Goldcorp on San Nicolás, Zacatecas; On the San Jose concession in Zacatecas, an unsuccessful drill program ended with the termination of Galore’s VP of Exploration. Santacruz is to sell its Gavilanes project in Durango.
ON MEXICO ISSUES
- No Relevant News.
ON EXPLORATION
- Zenith Minerals Ltd. commenced a near surface, 11 auger holes, drill program on a salt pan 4 km long by 2 km in width in San Juan del Salado, San Luis Potosi . The drilling is to test for near surface lithium brines to a maximum depth of 25 meters. Both sediments and brines are to be sampled.
- Almadex Minerals Ltd. received assays for the top 300 m of its first hole in the El Encianl zone of the El Cobre project in Veracruz. A 296.7 m intercept @ 0.32 g/t Au, 0.13% Cu includes 51.73 m @ 0.42 g/t Au, 0.17% Cu; and 100.47 m @ 0.44 g/t Au, 0.15% Cu. Almadex interpretation is that this hole intercepted significant mineralization that is proximal to a porphyry core.
- Galore Resources Inc. announced that a troublesome drilling program at its San Jose claim in Zacatecas was terminated (see below) after it was forced to abandon its first hole. The company has decided to focus the exploration on the adjoining El Alamo claim, which differs significantly in mineralization style.
- Santana Minerals Ltd. reported assay results for the first RC (reverse circulation) drill holes testing the southern extension of the Mojardina prospect at its Cuitaboca project in Sinaloa. Shallow drill intercepts include 53 m @ 47 g/t Ag; 15 m @ 100 g/t Ag; 7 m @ 53 g/t Ag, all of these less than 3 m from the surface.
ON MINING
- Mexus Gold US. continues in the start-up period of cyanide leaching at its Santa Elena mine in Sonora, near Caborca (not to mistake with First Majestic’s Santa Elena mine, also in Sonora).
- Arian Silver Corp. presented its financial results for 2016. During this period the company divested of the Calicanto silver project in Zacatecas, and focused in lithium properties in the Altiplano. At the end of the year the company had US$1.3 M in total assets, of which US$0.4 M was cash, with total liabilities for US$0.1 M. Twelve concessions were still held on four projects: San Celso, Los Campos, La Africana and Calicanto, and three other properties near San Celso.
- Santacruz Silver Mining Ltd. intersected the high-grade zone of the Membrillo vein at the Membrillo prospect in San Luis Potosi. Eight muck samples from the production drift assayed 0.10-0.59 g/t Au, 8-121 g/t Ag, 0.12-0.40% Pb, 0.62-7.07% Zn over 0.40 – 0.90 m of true thickness of the vein. “Management anticipates delivering 250 tpd of material from the Membrillo Prospect to the Rosario mill for processing during the third quarter of 2017.”
ON FINANCING
- Monarca Minerals Inc. settled an aggregate of $463 K in debt with certain of its creditors. Concept Capital Management Inc. now owns 6.5% and 13.9% of the issued and outstanding common shares (Tejamen, Durango).
- Santacruz Silver Mining Ltd. announced a non-brokered private placement aiming to collect gross proceeds of up to $1.5M (Veta Grande , Zacatecas).
- Alio Gold Inc. entered into an agreement with a syndicate of underwriters who accepted to purchase units of Alio Gold for gross proceeds of CDN$50M. The net proceeds of the offering will be used to advance its Ana Paula project in Guerrero.
- Hecla Mining Co. announced a cash tender offer for its outstanding 6.875% senior notes due 2021, of which there is $605 M aggregate principal amount outstanding (San Sebastian, Durango).
- Minera Alamos Inc. closed the previously announced private placement for gross proceeds of $5.4 M (La Fortuna, Durango).
- Minaurum Gold Inc. received proceeds of $3.5 M from the exercise of warrants issued on 2015 (Alamos project, Sonora).
- Wealth Minerals Ltd. closed a portion of the non-brokered private placement previously announced , for gross proceeds of $3.33 M (Coronado, Chihuahua).
ON RESOURCES AND DEVELOPMENT
- Gold Resource Corp. informed the continued expansion of the Arista Mine’s Swichtback vein system in Oaxaca. The new drill intercepts extend the known mineralization to 625 m along strike, still open in all directions. Drill hole intercepts include 5.25 m @ 1.2 g/t Au, 40 g/t Ag, 0.6% Cu, 1.4% Pb, 7.4% Zn; 5.08 m @ 3.2 g/t Au, 261 g/t Ag, 1.3% Cu, 4.3% Pb, 11.8% Zn; 6.64 m @ 1.49 g/t Au, 220 g/t Ag, 0.7% Cu, nil Pb, 13.2% Zn.
- Oceanus Resource Corp. released final assays for hole ET-17-144 on the Protectora vein of El Tigre property in Sonora. In a previous release the 0.85 m drill intercept (0.80 m true width, or TW) returned 37.2 g/t Au, 7,339 g/t Ag, and the new release adds assays of 2.84% Cu, 1.38% Pb, 4.06% Zn to the same interval. The nearby Palomitas tunnels have historical reports of 1.1 m @ 3.77 g/t Au, 1,714 g/t Ag (50 Oz/ton).
ON DEALS AND CORPORATE ISSUES
- Teck Resources Ltd. entered into a binding agreement with Goldcorp Inc. to purchase its 21% minority interest in the San Nicolás project, for cash consideration of $50 M. On completion of the transaction Teck will own 100% of the San Nicolás project in Zacatecas.
- Galore Resources Inc. decided to terminate drilling at the San Jose claim in Zacatecas, after the driller run a program plagued by mechanical issues. The decision to cease drilling resulted in the termination of the VP of Exploration.
- Santacruz Silver Mining Ltd. signed a letter of intent to sell its Gavilanes project in Durango to an arm’s length third party.
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, at least two stages of epithermal quartz veining in fine grained sandstone near Aldama, Chihuahua. Photo by Jorge Cirett.
