Highlights on the Third Week of July, 2017. Mineral Exploration in Mexico

During the 29th week of the year (July 17th to July 23rd, 2017), with the reporting of second quarter reports, at least 21 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, no relevant news. ON EXPLORATION, in Sonora Azure informed of exploration activities by Teck on the Alacrán project, and San Marco Resources announced the discovery of an intrusive breccia on its Chunibas property. In Durango Southern Silver disclosed exploration efforts on the recently acquired Biznaga and Lencho claims. ON MINING, Leagold, Sierra Metals, Premier Gold, Gold Resource and Excellon presented production results for the second quarter of 2017. Telson initiated servicing of milling and mining equipment at Campo Morado.  ON FINANCING, Alio Gold completed a bought deal offer for C$50.4 M; Southern Silver extended the closing date of the second tranche of financing; Telson resources closed the final tranche of the private placement, paying $700 K to Nyrstar; Monarca Minerals closed the second tranche of financing for $434 K; Premier Gold was granted permission to repurchase up to 19.6 M of its issued shares. ON RESOURCES AND DEVELOPMENT, Americas Silver updated development efforts on San Rafael; Almaden reported further high grade drilling results from its Tuligtic project; Kootenay reported a new target at La Cigarra; Mx Gold informed of advance on the Magistral project. ON DEALS AND CORPORATE ISSUES, Evrim signed a two year exploration alliance with Newmont; Red Tiger was reclassified as Tier 2 in the TSX.


  • No Relevant News.


  • Southern Silver Exploration Corp. informed on exploration efforts for epithermal vein systems on the recently acquired Biznagas and Los Lencho claims in Durango, adjacent to its Cerro Las Minitas property (Skarn/CRD mineralization). Multiple float samples returned up to 1.3 g/t Au, 57 g/t Ag, 1,155 ppm As, 777 ppm Sb, 46 ppm Hg. Interesting results include a four square km Ag-As-Au-Pb-Zn anomaly in the middle of the Biznagas claim and a four km long Ag-Au-As-Hg anomaly. Over 750 samples have been collected, mostly of quartz (locally bearing black bands of fine grained sulfides) and rhyolite float, with results received for 415 of the samples. Drill targeting is scheduled for the Fall of 2017.
  • Azure Minerals Ltd. informed on the advance that Teck Resources Ltd. has achieved during the Q2 2017 on the Alacran project in Sonora, on which Teck is earning an initial 51% interest by spending US$10M by the end of 2020. Exploration activities include geochemical, hyperspectral and geochronological studies, geological mapping, surface sampling and  geophysical surveys, prior to drill-testing the identified targets by the third quarter.
  • San Marco Resources Inc. increased from four to six holes the HQ core drilling program at its Chunibas project in Sonora, after the discovery of a new multi-lithic and highly altered intrusive breccia associated to the mineralization. The most interesting intervals are 39.0 m @ 0.67 g/t Au (including 20 m @ 1.05 g/t Au); 21 m @ 0.58 g/t Au (the hole ended with 1.2 m @ 2.42 g/t Au); 3.3 m @ 5.05 g/t Au (a separate interval at the end of the hole: 2.2 m @ 1.05 g/t Au). The mineralization style being tested was on shear zones and wall rock dissemination, the mineralized breccia changes the scope of future drilling. Assays are pending for the last three holes.


  • Leagold Mining Corp. reported second quarter 2017 production results at Los Filos mine in Guerrero. The mine produced 46,098 Oz Au, and the company ended the period with a cash balance of $65 M and operations being cash flow positive. An agglomeration drum is being reinstalled and an overland conveyor extended as part of an optimization plan. The Bermejal underground expansion project is advancing with 10 drill rigs on the 56,000 m infill and step-out program. A new processing facility is being evaluated for the higher grade underground ore.
  • Sierra Metals Inc. announced 2Q 2017 production results, including figures from its Cusi and Bolivar mines in Chihuahua. At Bolivar 192,937 tonnes were processed at 2,205 tpd (tonnes per day) @ 0.97% Cu, 15 g/t Ag, 0.17 g/t Au, with 76% Cu, 75.2% Ag, 58.3% Au recoveries, to produce 3.1 M Lb Cu, 73 K Oz Ag, 620 Oz Au. At Cusi 23,956 tonnes were processed (274 tpd) @ 189 g/t Ag, 0.27 g/t Au, 1.1% Pb, 1.1% Zn, with 65.4% Ag, 60.7% Au, 78.0% Pb, 45.8% Zn recoveries, to produce 95 K Oz Ag, 126 Oz Au, 457 K Lb Pb, 262 K Lb Zn.
  • Premier Gold Mines Ltd. presented second quarter 2017 production results from its Mercedes mine in Sonora. During the period 21,893 Oz Au, 89,474 Oz Ag were produced.
  • Gold Resource Corp. reported preliminary second quarter 2017 production results from its Aguila project in Oaxaca. During the period 5,696 Oz Au, 397.7 K Oz Ag, 294 tonnes Cu, 1,207 tonnes Pb, 4,176 tonnes Zn were produced.
  • Excellon Resources Inc. released second quarter 2017 production results from the Platosa mine in Durango. At the site 10,840 tonnes were mined, 13,877 tonnes milled @ 394 g/t Ag, 3.5% Pb, 4.5% Zn, recovering 89.8% Ag, 80.4% Pb, 80.7% Zn to produce 160,820 Oz Ag, 850.1 K Lb Pb, 1.11 M Lb Zn. With the dry mining conditions achieved (see last week Highlights edition) higher grade zones can be now mined at greater rates.
  • Telson Resources Inc. has initiated hiring and training of personnel whom are currently servicing all milling and mining equipment located at the mine site. Telson is planning to restart mining employing block caving versus Nyrstar’s room and pillar mining methods, to potentially reduce mining costs. If offtake funding is achieved successfully the company hopes to initiate mining at Campo Morado within three months. During 2014 Campo Morado processed 657 K tonnes of ore @ 1.2 g/t Au, 115.7 g/t Ag, 4.6% Zn, 1.2% Cu, 0.9% Pb.


  • Southern Silver Corp. extended the closing date for its brokered private placement to August 16th, 2017. The first tranche was closed on June 13th for a total of $2.55 M (Cerro Las Minitas, Durango).
  • Alio Gold Inc. completed the previously announced bought deal offering for aggregate gross proceeds of C$50.39 M (San Francisco, Sonora).
  • Telson Resources Inc. closed the final tranche of the private placement previously announced, issuing 1.732 M shares at 55 cents per share, and paid an additional US$700 K to Nyrstar Mining. The funding was received from Estratégica Corporativa en Finanzas, a related party of Telson. The related party is a significant shareholder with a control position in the Company (Campo Morado, Guerrero).
  • Monarca Minerals Inc. completed the second tranche of its previously announced non-brokered private placement for gross proceeds of $434 K, and aggregate gross proceeds of $2.15 M (Tejamen, Durango).
  • Premier Gold Mines Ltd. received approval of the Toronto Stock Exchange (TSX) for a normal course issuer bid to purchase up to 19.6 M of its issued and outstanding common shares (Mercedes, Sonora).


  • Americas Silver Corp. provided an update on the San Rafael project in Sinaloa. At the end of the second quarter approximately US$10.5 M of a US$18 M budget have been spent. The main ramp and a secondary ramp continue its development; the secondary ramp is expected to allow mining to begin by early August. Mill modifications are progressing and commissioning of the new equipment is set for the second half of August. In the second quarter 2017 a 2,700 m 8-hole definition drill campaign was completed over the Zone 120 area. Presently four more holes are testing the connection with El Cajón mine. Current production continues primarily from the Nuestra Señora mine. El Cajón stockpiles are available until San Rafael production commences at the end of the quarter.
  • Almaden Minerals Ltd. reported more drilling results from the exploration and development program at its Tuligtic project in Puebla. Relevant intercepts comprise 18.25 m @ 0.69 g/t Au, 263 g/t Ag; 26 m @ 0.19 g/t Au, 346 g/t Ag; 21.0 m @ 1.57 g/t Au, 49 g/t Ag; 11.0 m @ 1.85 g/t Au, 106 g/t Ag; 23.5 m @ 0.26 g/t Au, 66 g/t Ag; 19.25 m @ 1.05 g/t Au, 73 g/t Ag.
  • Kootenay Silver Inc. announced that detailed sampling and reconnaissance work identified a drill target within the La Navidad zone at its La Cigarra property in Chihuahua. The new zone measures up to 1,000 m long by 300 m wide, and is 500 m from the San Gregorio zone, which hold 60% of the current resource at La Cigarra.
  • Mx Gold Corp. announced that on its Joint Venture with GracePoint Mining Corp. a subsidiary or Firma Holdings Corp. the Magistral project is progressing on schedule. “The project includes a fully permitted 500 TPD Dynamic Cyanide counter current system plant. Construction of the plant was completed in 2013, for approximately $4.5 million. There is a current build out, underway, to bring the plant to 1,000 tonnes per day capacity.” The project includes the right to process 1.2 M tonnes of tailings grading 2.06 g/t Au.
  • Consolidated Zinc Ltd. released results from the infill drilling focused on the increase of resources on the Tres Amigos area of its Plomosas property in Chihuahua. Best results include 1.75 m @ 9.4% Zn, 1.7% Pb, 9 g/t Ag; 0.95 m @ 10.9% Zn, 6.7% Pb, 23 g/t Ag; 0.55 m @ 31.2 % Zn, 0.2% Pb, 9 g/t Ag. Consolidated is to drill additional holes aiming to include further mineralization in an upcoming JORC resource upgrade.


  • Evrim Resources Corp. signed a two-year Exploration Alliance with Newmont Mining Corp. The alliance is to focus in generating greenfield exploration in terranes favorable for world-class gold orebodies. Newmont is to have the right to designate one or more projects for option by making certain cash payments to Evrim and solely fund the exploration on the project for up to 10 years, or until a NI 43-101 compliant pre-feasibility study on a greater than 2 M Oz gold resource, point at which Newmont will have 80% interest in the project. Evrim will be the operator for the initial US$5 M in exploration expenditures.
  • Red Tiger Mining Inc. continues to produce copper cathodes from the residual leaching of its leach pad, having ceased mining operations at the Luz del Cobre mine in Sonora on December of 2016. Red Tiger has been unable to file its annual consolidated financial statements and Management Discussion & Analysis (“MD&A”) for 2016. The company has been reclassified as Tier 2 by the TSX Venture Exchange.

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 goethite and hematite staining on silicified sandstone in eastern Chihuahua. Photo by Jorge Cirett.

Julio 2014 204

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