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

During the 33rd week of the year (August 14th to August 20th, 2017), at least 24 press releases were announced by companies working in Mexico, including five quarterly reports. ON MEXICO ISSUES, no relevant news. ON EXPLORATION, in Sonora, Azure reported the acquisition of the Oposura property (formerly Arenillas). In Sinaloa Marlin Gold released results from a twin hole south of its La Trinidad mine, and Santana Minerals reported saw channel samples from its Cuitaboca project. In Veracruz Almadex reported good gold and copper values over a long drill intercept at El Cobre. ON MINING, GoGold, Sierra Metals, Fortuna Silver, Aura Minerals and Starcore presented financial and/or operational results for the last quarter. Telson resources reported the second concentrates shipment from Tahehueto in Durango. ON FINANCING, Primero mining is delisted from the NYSE. Southern Silver is extending the closing of the second tranche of financing. Maverix Metals closed a senior secured loan facility with CFE Ltd.  ON RESOURCES AND DEVELOPMENT, Avino Silver released infill and step-out drilling results from Avino, in Durango. Kootenay  announced the discovery o a new mineralized zone at its La Cigarra property in Chihuahua. Minera Alamos commenced an exploration program focused on resource expansion at La Fortuna in Durango. Consolidated Zinc disclosed more high-grade results from infill and step-out drilling at its Plomosas property in Chihuahua. ON DEALS AND CORPORATE ISSUES, Santacruz Silver completed the sale of the Gavilanes project in Durango to Marlin Gold. Discovery Metals announced the acquisition of multiple properties in Coahuila, including the Puerto Rico listing property.

ON MEXICO ISSUES

  • No relevant news.

ON EXPLORATION

  • Marlin Gold Mining Ltd. announced that a diamond drill hole at the San Cristobal target, 12 km from its La Trinidad mine in Sinaloa intercepted 13.90 m true width (TW) @ 1.19 g/t Au, 21 g/t Ag. The objective of the drill hole was to twin a reverse circulation hole that intersected 0.74 g/t Au over 30 m in 2010. “Reconnaissance geological mapping and sampling (over 1,600 rock chip samples) indicate gold and silver is associated with quartz veins, quartz stockwork, quartz breccia and silicified zones within a four kilometer-wide, northwest-trending structural corridor”.
  • Almadex Minerals Ltd. disclosed results from the best hole to date at the North zone of its El Cobre project in Veracruz. The drill hole intersected multiple zones of intense stockwork veining and potassic alteration with gold and copper mineralization. The 534.9 m intercept @ 0.90 g/t Au, 0.3% Cu includes 144.8 m @ 1.77 g/t Au, 0.45% Cu (which includes 98.0 m @ 1.96 g/t Au, 0.48% Cu.
  • Endeavour Silver Corp. Released results from recent drilling at La Luz vein in its Terronera property in Jalisco. Relevant true width intercepts of 1.7 m @ 16.2 g/t Au, 45 g/t Ag; 1.3 m @ 20.9 g/t Ag, 25 g/t Ag; 1.4 m @ 0.2 g/t Au, 419 g/t Ag; 1.0 m @ 2.3 g/t Au, 73 g/t Ag; 1.1 m @ 2.7 g/t Au, 91 g/t Ag; 1.1 m @ 20.3 g/t Au, 384 g/t Ag, 1.2 m @ 16.5 g/t Au, 38 g/t Ag; 1.2 m @ 7.6 g/t Au, 12 g/t Ag. Anomalous values of up to 0.15% of Cu, Pb and Zinc are part of the results.
  • Azure Minerals Ltd. announced the acquisition of 100% of the Zn-Pb-Ag Oposura project (previously known as Arenillas) in Sonora, without elaborating on the terms. About 100 drill holes were completed previously on the property, and a non JORC compliant resource estimated. Sampling of the mineralized zone returned multiple assays over 30% Pb+Zn, with significant silver values. “The overall mineralised zone is up to nine metres thick, averages about three metres in true width, and demonstrates good continuity of width and grade”.
  • Santana Minerals Ltd. reported significant diamond saw channel sampling results from the La Plata prospect within its Cuitaboca project in Sinaloa. The results over accessible outcrops include 2.45 m @ 362 g/t Ag and 4.60 m @ 295 g/t Ag. These results represent the continuity 300 m east of previous sampling, extending the potential strike of the interpreted La Plata vein system to approximately 2 km.
  • Galore Resources Inc. disclosed assay results from seven rock chip samples collected on El Alamo target on its Dos Santos project in Zacatecas. The samples collected in breccias and jasperoids assayed 0.8 to 18.6 g/t Au. Drilling plans envisage ten 150 to 300 m deep holes.

ON MINING

  • Telson Resources Inc. announced the second shipment of 128 tonnes of lead concentrate and 227 tonnes of zinc concentrate from the Tahuehueto mine. The metal recoveries were 83.5% Au, 89.3% Ag, 86.1% Pb, 85.4% Zn.
  • GoGold Resources Inc. released its financial results for the quarter ending on June 2017 (their Q3). During the period 2,337 Oz Au, 151,422 Oz Ag were produced at the Parral tailings project at cash cost of $9.61 per AgEq Oz. The Santa Gertrudis high grade gold project produced 320 Oz Au. The overall cash cost was $16.2 per AgEq Oz and the all-in sustaining cost (AISC) $25.91. At the end of the quarter the company had a working capital deficit of $35.1 M. Management is exploring alternatives to de-lever its balance sheet.
  • Sierra Metals Inc. reported consolidated results for the second quarter of 2017. At Bolivar in Chihuahua the cash cost per CuEq Lb was $1.35 and AISC $2.49 per CuEq Lb for the period, while at Cusi, also in Chihuahua, the cash cost per AgEq Oz was $20.60 and AISC $49.13. At Bolivar 775 m of mine development were completed to prepare stopes for mine production, and 11,236 m were drilled at El Gallo, Bolivar Northwest and Bolivar West zones. At Cusi mine development totaled 1,551 m and 2,021 m of infill drilling were completed and further 15,566 m were drilled on the Santa Rosa de Lima orebody. Cash and cash equivalents of $31.1 M at the end of the period.
  • Fortuna Silver Mines Inc. reported its consolidated financial results for Q2 2017. At San Jose in Oaxaca 268.4 K tonnes were milled (3,016 tonnes per day, or tpd) @ 238 g/t Ag, 1.82 g/t Au, and a recovery rate of 92% Ag, 92% Au to produce 1.88 M Oz Ag, 14,410 Oz Au. Cash cost net of by-product credits was $1.03 per Ag Oz and AISC $7.67 per Ag Oz. Cash and short term investments of $16.7 M at the end of the period.
  • Aura Minerals Inc, released Q2 2017 financial and operating results. Aura owns the idle Aranzazu mine in Zacatecas, which is under care and maintenance. The company is evaluating options to maximize value of this asset.
  • Starcore International Mines Ltd. announced production results for the first quarter of fiscal 2018, ended July 31, 2017. During the quarter at the San Martin mine in Queretaro 69.7 K tonnes were milled @ 1.97 g/t Au, 12.6 g/t Ag with recoveries of 85.0% Au, 51.2% Ag to produce 3,888 Oz AuEq. Furthermore, the Altiplano Facility received 37. 2 tonnes of concentrate and 24.2 tonnes of slag containing approximately 150 Oz Au and 25.5 K Oz Ag.

ON FINANCING

  • Primero Mining Corp. has received formal notification from the New York Stock Exchange of its intention to initiate delisting procedures, as the company is no longer suitable for listing based on “abnormally low” price levels. The company continues trading on the Toronto Stock Exchange.
  • Southern Silver Exploration Corp. is extending the final closing date of its previously announced brokered private placement until September 15th, 2017. The first tranche closed in June, raising $2.55 M of the intended goal of $5.0 M on two tranches.
  • Maverix Metals Inc. closed the previously announced senior secured loan facility with CEF Ltd. for US$20 M. The company has closed the previously announced private placement to CEF and Pan Ameican Silver Corp. for total proceeds of $9.88 M. Maverix now has over C$44 M available to acquire additional precious metals royalties (Royalties from La Colorada in Zacatecas, San Jose in Oaxaca).

ON RESOURCES AND DEVELOPMENT

  • Avino Silver & Gold Mines Ltd. release further results from the extended 22 hole drill program comprising 3,374 m at the Avino mine in Durango. The program focused on tonnage and grade of the area between the San Luis workings and the Elena Tolosa current production area. Relevant results include 9.30 m @ 0.39 g/t Au, 29 g/t Ag, 0.25% Cu; 22.65 m @ 1.48 g/t Au, 41 g/t Ag, 0.20% Cu; 34.5 m @ 0.35 g/t Au, 88 g/t Ag, 0.82% Cu; 25.40 m @ 0.68 g/t Au, 47 g/t Ag, 0.08% Cu; 43.05 m @ 0.50 g/t Au, 33 g/t Ag, 0.08% Cu; 8.85 m @ 0.09 g/t Au, 61 g/t Ag, 0.77% Cu; 8.45 m @ 1.36 g/t Au, 7 g/t Ag, 0.07% Cu; 23.40 m @ 1.09 g/t Au, 167 g/t Ag, 0.38% Cu; 40.45 m @ 0.56 g/t Au, 42 g/t Ag, 0.19% Cu; 42.05 m @ 0.49 g/t Au, 103 g/t Ag, 0.18% Cu. Three areas are scheduled to have exploration drilling: San Gonzalo (1,200 m), The Avino-San Juventino intersection (2,000 m) and the Chirumbo mining area (2,000 m ).
  • Kootenay Silver Inc. announced the discovery of a new mineralized zone within La Venada target at its La Cigarra property in Chihuahua. This area is blind to the surface, 1 km south of the La Cigarra resource. “More than 250 meters in core length of quartz-calcite and quartz vein breccia and veining within altered sediments was intercepted…”. The new zone intercept comprises 29.5 m @ 91 g/t Ag, including 19.2 m @ 123 g/t Ag. Results from the Venada zone include 12 m @ 73 g/t Ag; 10 m @ 47 g/t Ag; 19.2 m @ 123 g/t Ag (including 2.0 m @ 435 g/t Ag; and 10.7 m @ 114 g/t Ag); 9.5 m @ 107 g/t Ag. All intervals contain values of up to 0.6% Pb and 3.3% Zn.
  • Minera Alamos Inc. has initiated an exploration program aimed to expand resources at La Fortuna property in Durango. Data compilation, surface mapping, drill targeting and  a new geophysical survey are to be completed on projections of the La Fortuna resource zone, the PN area, the Ramada zone, Cerro Pelon zone and the far southern area.
  • Consolidated Zinc Ltd. released results from its resource expansion drilling program at its Plomosas project in Chihuahua. True width intercepts include: 0.40 m @ 3.8% Zn, 1.0% Pb; 1.75 m @ 9.4% Zn, 1.7% Pb; 0.85 m @ 4.4% Zn, 0.3% Pb; 0.90 m @ 10.9% Zn, 6.7% Pb; 0.95 m @ 3.7% Zn, nil Pb. Length of drill hole intersections include 1.50 m @ 8.0% Zn, nil Pb; 1.35 m @ 34.7% Zn, nil Pb; 0.5 m @ 5.0% Zn, 0.2% Pb; 0.75 m @ 4.2% Zn, 0.3% Pb; 0.5 m @ 2.3% Zn, 1.1% Pb; 0.5 m @ 9.4% Zn, 0.3% Pb; 1.0 m @ 7.2% Zn, 0.4% Pb.

ON DEALS AND CORPORATE ISSUES

  • Santacruz Silver Mining Ltd. informed the sale of 100% interest in the Gavilanes property in Durango to Marlin Gold Mining Ltd. has been completed.
  • Discovery Metals Corp. is now classified as a Tier 2 Mining Issuer on the TSX Venture Exchange, with the completion of the transaction on the Puerto Rico property agreement. Under the agreement Discovery has done a $300 K payment, the issuing 500 K shares to the vendors, and pledged to make and additional US$300 K payment and issuing a further 500 K shares upon government drilling approval, and the issuance of four tranches of 500 K shares on each anniversary of the closing after the second anniversary. A final issuance of shares representing 30% of the company’s issued and outstanding capital is also included, with some clauses that can take the vendors stake to 35%. Discovery also has to spend not less than US$2 M within one year of the drilling approval and not less than $12.5 M within five years to exercise the option.
  • Discovery Metals Inc. For acquiring the Renata project in Ocampo, Coahuila a US $100 K payment is to be made to the vendors within three months of the closing. Not less than US$2 M have to be spent within three years of the closing, and in the case of sale to a third party the vendors are to receive the first US$3 M of the proceeds. On La Kika property in Coahuila, Discovery has paid US$45 K on closing, and has to spend not less than US$2 M within five years, the issuance to the vendors of 1 M shares and a royalty of 30% on the operating profits of the first 450 K tonnes shipped, or a 2% NSR otherwise. Additional option agreements involve La Minerva, Santa Rosa and Jemi/Rare Earth concessions..

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, low sulfidation quartz vein stockwork in felsic volcanic rocks, in the Sierra Madre of Chihuahua. Photo by Jorge Cirett.

DSCN5183 - copia

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