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

During the 45th week of the year (November 6th to November 12th, 2017), at least 31 press releases were announced by companies working in Mexico, including nine quarterly reports. ON MEXICO ISSUES: No relevant news. ON EXPLORATION: seven companies informed on exploration efforts during the week: In Sonora Millrock finalized the first phase of exploration at its Navidad project with rock chip sampling and geophysical surveys; Sonoro provided an initial description and work plan at the newly optioned Calera property. In Chihuahua Consolidated Zinc released high-grade Zn-Pb rock chip results 2.5 km from its resource area at Plomosas. In Coahuila Discovery Metals presented high-grade Ag-Pb-Zn rock chip and channel results from its Puerto Rico and La Kika properties. Southern Silver informed on exploration work at its Creston del Oro, Biznagas and Los Lenchos concessions. In Hidalgo, Prospero Silver reported drilling results from the first drill testing ever of the Petate project. ON MINING: Fortuna Silver, Golden Minerals, Avino Silver, Pan American Silver, Premier Gold, Alio Gold, Torex Gold and Sierra Metals presented third quarter results. Torex Gold informed in three press releases on the work stoppage at its  El Limon – Guajes mine in Guerrero, resulting from the dispute between two unions. ON FINANCING: Advance Gold and Mammoth Resources are going ahead with non-brokered private placements for up to $200 K and $720 K respectively; Excellon closed a public bought deal offering, raising $14.8 M. ON RESOURCES AND DEVELOPMENT: Southern Silver released results from its last hole of the 2017 campaign, with two high-grade Zn intercepts.  ON DEALS AND CORPORATE ISSUES: Discovery Metals informed of the sudden death of its Vice-president Exploration, Peter Drobeck. Goldcorp informed that the sale of the Camino Rojo project in Zacatecas to Orla Mining has been completed. Sierra Metals informed of the appointment to the board of Jose Vizquerra. Magellan Gold informed the purchase of the SDA mill in Nayarit is approaching completion. Sable Resources announced the signing of definitive agreements on the acquisition of BlueJoint Resources, which has an extensive land position in Mexico. Sonoro Resources optioned the Calera property in Sonora.


  • No Relevant News.


  • Southern Silver Exploration Corp. disclosed exploration work on its Creston del Oro, Biznagas and Los Lenchos claims, which are contiguous to its Cerro Las Minitas property in Durango. Over 1400 rock chip and float samples have been collected, revealing a NW-SE corridor greater than 12 km in length, anomalous in precious metals and pathfinder elements. Targeting for an early 2018 RC drill campaign is to base on the multiple distinct clusters and trends seen.
  • Discovery Metals Corp. released results from 32 channel samples at its Puerto Rico project in Coahuila. The samples were collected on the southern part of the project, from the Puerto Rico, San Jose and Zaragoza mines, in manto style mineralization, as well as high-angle breccias, fracture zones and chimney features. Results include 0.8 m @ 202 g/t Ag, 22.3% Pb, 0.7% Zn, 0.16% Cu; 2.0 m @ 242 g/t Ag, 25.2% Pb, 6.3% Zn, 0.19% Cu; 3.5 m @ 506 g/t Ag, 3.5% Pb, 21.9% Zn, 0.11% Cu at Zaragoza; 10.5 m @ 25 g/t Ag, 1.6% Pb, 18% Zn, 0.15% Cu; 4.0 m @ 519 g/t Ag, 29.7% Pb, 17.3% Zn, 0.44% Cu; 3.0 m @ 1,480 g/t Ag, 31.9% Pb, 0.1% Zn, 0.41% Cu at San Jose; and 4.0 m @ 230 g/t Ag, 15.0% Pb, 26.3% Zn; 1.5 m @ 316 g/t Ag, 23.0% Pb, 15.0% Zn; 5.0 m @ 25 g/t Ag, 1.8% Pb, 31.1% Zn; 6.0 m @ 615 g/t Ag, 20.8% Pb, 24.3% Zn; 1.6 m @ 477 g/t Ag, 11.8% Pb, 2.4% Zn, 11.2% Cu at Puerto Rico.
  • Discovery Metals Corp. released panel and channel sampling results from its La Kika project in Coahuila. Numerous prospect pits are scattered over a 200 by 200 m area, showing high-grade Ag-Pb-Zn carbonate replacement mineralization as subhorizontal mantos and subvertical chimney-like structures with massive oxides of Zn-Pb-Ag-Cu. Results include 0.7 m @ 600 g/t Ag, 30.1% Pb, 8.3% Zn, 0.44% Cu; 0.5 x 1.0 m panel @ 35.5% Zn, 1.2% Cu; 1.0 x 0.5 m panel @ 160 g/t Ag, 10.0% Pb, 16.7% Zn, 0.24% Cu; 0.6 m @ 258 g/t Ag, 11.2% Pb, 12.4% Zn; 1.0 x 0.5 m panel @ 420 g/t Ag, 18.9% Pb, 1.2% Zn.
  • Consolidated Zn Ltd. announced results of first pass rock chip sampling at the Alfonsitos prospect, 2.5 km NW from its Plomosas mine in Chihuahua. Grades of up to 18.5% and 24.3% Zn+Pb were obtained from workings and outcrops respectively. Alfonsitos is the first of several prospects identified by reconnaissance exploration and geophysical surveys.
  • Millrock Resources Inc. reported that its first phase of exploration at La Navidad project, targeting orogenic style mineralization, is now complete. A 1,082 samples soil survey has returned 248 samples with values greater than 50 ppb Au, while 83 rock chip samples of a total of 575 returned greater than 0.5 g/t Au. A ground magnetic survey covering 82 line-km and a 20 km induced polarization survey were also carried out in the property. Three prospects have been identified, Anchor, Horseshoe and Cobre, with rock sampling returning 24 m @ 0.9 g/t Au; 12 m @ 1.1 g/t Au; 14 m @ 0.8 g/t Au. A 2,000 m drill program on nine holes is in progress.
  • Prospero Silver Corp. provided a preliminary update on the first stage reconnaissance drilling at its Petate property in Hidalgo. Eight shallow holes have been completed with the aim to establish structure and better aiming at deeper targets. The initial holes were drilled at the Apartadero zone, which shows multiple jasperoid outcrops in limestone. Mineralized intercepts include 18.5 m @ 0.8 g/t Au, 5 g/t Ag; 3.4 m @ 3.5 g/t Au, 2 g/t Ag.
  • Sonoro Metals Corp. provided an initial description of its newly optioned Calera project in Sonora (see below on the deals section). “Large zones of disseminated pyrite replacement in the shallow dipping calcareous shale units are extensive with coincident regolith gold placer within the concessions. Local altered felsic dikes cut the mineralized meta-sedimentary rock units and may be associated with mineralization”.  Initial work is to surface sample the concession area, where multiple old prospect pits are located, and a soil sample program on east-west lines to identify targets for further exploration.


  • Torex Gold Resources Inc. Informed that on November 3rd , a group of approximately 20 local unionized workers illegally blockaded the entrance to the El Limon – Guajes mine in Guerrero. The group of workers demands a change of union, same that can only be accomplished through a government sanctioned process validated by the majority of unionized workers in an assembly. The company shut down the processing plant in an orderly manner, and stated that during the stoppage there will be a focus on maintaining environmental protections.
  • Torex Gold Resources Inc. reported that on November 6th a group of approximately 35 persons entered the El Limon – Guajes mine site in Guerrero and threatened the site staff. Care and maintenance activities resumed on November 8th. The Company has requested to the appropriate authorities that they take action to restore law and order that has been disrupted by a conflict between two unions. “Excellent political support has been received from State and Federal governments to advance the legal charges and to find a negotiated resolution to the dispute between the two syndicates.”
  • Fortuna Silver Mines Inc. reported its financial results for the third quarter 2017. During the period 263.7 K tonnes were milled (3,038 tonnes per day, or tpd) @ 229 g/t Ag, 1.71 g/t Au, recovering 91% Ag, 91% Au to produce 1.77 M Oz Ag, 13,248 Oz Au at all-in sustaining cost of $7.75 per Oz Ag. At the end of September the company had cash and cash equivalents for $195.8 M.
  • Golden Minerals Co. presented its third quarter 2017 results. During the period Golden expanded the Santa Maria project in Chihuahua by acquiring adjacent claims, and begun two 1,500 m drill programs on Santa Maria and the Velardeña properties in Durango. The lease on its oxide mill to Hecla was extended to 2020. The company spent $6.2 M and received $8.6 M during the first nine months of the year, ending the third quarter with $5.0 M in cash and cash equivalents.
  • Avino Silver Gold Mines Ltd. announced the consolidated financial results for the third quarter 2017. During the period 138.2 K tonnes were milled to produce 368.4 K Oz Ag, 2,673 Oz Au, 1.1 M Lb Cu at cash cost $9.74 per AgEq Oz, and AISC $11.25 per AgEq Oz. The company had revenues of US$8.4 M during the period, with US$3.8 M in cash and US$4.0 M in short term investments by the end of September.
  • Pan American Silver Corp. reported unaudited net earnings for Q3 2017, including figures from its Mexican operations. During the period the company produced 1.83 M OzAg, 1,210 Oz Au at La Colorada, in Zacatecas, and 0.97 M OzAg, 24,960 OzAu at Dolores in Chihuahua, at cash cost of $1.71 and ($0.57) per AgOz, net of by-product credits, respectively. At Dolores, ramp-up of the new pulp agglomeration plant started in August, with the plant processing 120 K tonnes of high grade ore in Q3. Heap leach stacking rates reached 20 K tpd, and underground mining is to commence before the end of 2017. At La Colorada mining and processing rates averaged 1,906 tpd, exceeding design rates of 1,800 tpd.
  • Premier Gold Mines Ltd. disclosed third quarter 2017 results, including figures from its Mercedes mine in Sonora. At Mercedes 156.4 K tonnes were milled @ 3.88 g/t Au, 36 g/t Ag, to produce 18,564 Oz Au, 82.8 K Oz Ag. Recovery rates were 95.4% Au 45.2% Ag, with co-product cash cost of $793 per OzAu, co-product AISC of $998 per Oz Au, co-product cash cost of $10.35 per OzAg, co-product AISC of $13.49 per OzAg. Up to ten underground and surface drill rigs were operating during the period. At the end of the period the company held $171.8 M in cash and cash equivalents.
  • Alio Gold Inc. provided third quarter 2017 results. At its San Francisco mine in Sonora, Alio produced 19,429 Oz Au at cash cost $884 and all-in sustaining cost of $1,104 per OzAu. The revitalization plan of the pit includes moving 22 M tonnes of waste from the San Francisco Main and La Chicharra pits. Also during the period the company completed a bought deal financing for C$50.4 M, received the land use permit for its Ana Paula project in Guerrero, where a decline was permitted and contracts awarded. At the end of September the company had $68.5 M in cash and short term investments.
  • Torex Gold Resources Inc. presented financial results for the third quarter 2017. During the quarter the El Limon-Guajes mine moved 8.7 M tonnes, averaging 94.4 K tpd, with the plant processing 1.15 Mt (12,522 tpd) @ 2.35 g/t Au to produce 67,333 Oz Au at a gold recovery rate of 87%. Total cash cost was $728 per OzAu and AISC of $1,035 per OzAu.
  • Sierra Metals Inc. reported consolidated results for the third quarter 2017, including information from its Mexican operations. At Bolivar in Chihuahua, mine development totaled 942 m, while at Cusi, also in Chihuahua, mine development totaled 1,033 m, and 1,164 m of infill drilling were carried out. Cash cost per CuEq Lb was $1.69 and an AISC per CuEq Lb of $3.32 at Bolivar; At Cusi cash cost per AgEq Oz was $21.95 and AISC per AgEq Oz was $51.93. On exploration, 14,082 m were drilled atBolivar (992 m at El Gallo; 7,168 m at Bolivar NW; 418 m at Chimney 2; 5,504 m at Bolivar W). At the end of the period Sierra Metals had $28.6 M in cash and cash equivalents, and a net debt of $39.9 M.
  • Fortuna Silver Mines Inc. disclosed consolidated results for the third quarter 2017, including figures from its San Jose mine in Oaxaca. At San Jose 263.7 K tonnes were milled (3,038 tpd) @ 229 g/t Ag, 1.71 g/t Au, with recoveries of 91% Ag, 91% Au, to produce 1.77 M Oz Ag, 13,248 Oz Au. Cash cost was $1.53 per OzAg and AISC was $7.75. The company had $195.8 M in cash, cash equivalents and short term investments by the end of the period.


  • Advance Gold Corp. is to undertake a non-brokered private placement to raise up to $200 K in gross proceeds (Tabasqueña, Zacatecas).
  • Excellon Resources Inc. closed the previously announced bought deal public offering, for aggregate gross proceeds of $14.8 M. With the purchase of $2.5 M in shares, Eric Sprott now owns a 19.2% interest in the company on a non-diluted basis (Platosa, Durango).
  • Mammoth Resources Corp. announced a non-brokered private placement, intending to raise up to $720 K to drill its Tenoriba property in Chihuahua.


  • Southern Silver Exploration Corp. released results from the last hole drilled in 2017 on its Cerro Las Minitas project in Durango. The hole intersected 2.1 m (estimated true width, TW) @ 88 g/t Ag, 0.2% Pb, 10.3% Zn and 1.5 m @ 30 g/t Ag, 0.1% Cu, 20.7% Zn. Southern Silver is in the process of reviewing, modelling and compiling the 2017 drill results aiming to produce an updated mineral resource estimate in the coming weeks.


  • Discovery Metals Corp. informed the sudden passing away of Peter Drobeck, its vice president of exploration. Peter Drobeck had a career of over 35 years in exploration, having worked for companies like Silver Standard, AuRico Gold, Electrum USA and Newcrest, before joining Discovery Metals earlier in 2017 (Note of compiler.- Peter worked for decades in Mexico for different companies, leaving many friends in the industry. He will be missed greatly).
  • Goldcorp Inc. announced the completion of the sale of the Camino Rojo project in Zacatecas to Orla Mining Ltd., following the receipt of Mexican anti-trust approval. Goldcorp acquired 19.9% of Orla’s shares. The Camino Rojo project has 1.7 M Oz Au in reserves and 7.5 M Oz Au in measured and indicated resources.
  • Sierra Metals Inc. appointed Jose Alberto Vizquerra-Benavides to its board of directors, and Sierra Metals Audit Committee. Mr. Jose Vizquerra is currently executive vicepresident of strategic development and a director at Osisko Mining Inc. (Cusi and Bolivar, Chihuahua).
  • Magellan Gold Corp. informed that the purchase of the SDA mill in Nayarit from Rose Petroleum PLC is nearing conclusion. The parties anticipate the closing to occur during November 2017.
  • Sable Resources Ltd. announced that it has entered into definitive agreements for the acquisition of BlueJoint Resources Inc. and Western Canada Greenfields Group Inc. “the Acquisitions will be structured in the form of a three-cornered amalgamation, pursuant to which each of BlueJoint and WCG will amalgamate with a wholly-owned subsidiary of Sable”. BlueJoint systematically explored 1.74 million hectares in 10 target areas considered highly prospective and underexplored for precious metal epithermal mineralization in Mexico (Vinata, Chihuahua; Escarpe, Queretaro).
  • Sonoro Metals Corp. entered into an option agreement with a private Mexican resident to acquire the 144 hectares Calera project in Sonora. The deal portrays the payment in six years of $1 M in six installments of increasing cost, and a 2% NSR that can be bought by Sonoro for $650 K at any time

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, beautifully banded epithermal quartz vein from a prospect on the Durango Altiplano. Photo by Jorge Cirett.

055 - copia

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