By Miguel A Heredia

During the 5^th week of the year (January 29^nd to February 4^th, 2018), at least 24 press releases were announced by companies working in Mexico, with one reporting its full year 2017 results, one providing 2018 guidance for its mining operations, and six announcing financing rounds. ON MEXICO ISSUES, Torex announced that the illegal blockade by an external Union at its ELG Mine Complex in Guerrero has been removed. ON EXPLORATION, In Sonora, Aztec Minerals and Kootenay Silver released good drill results from its Cervantes project; SilverCrest Metals Inc released additional high-grade drill results for its Las Chispas project in Sonora, with ten to fifteen thousand meters of drilling planned for the first semester of 2018. In Chihuahua, Harvest Gold prepares to conduct a first phase drilling at its Cerro Cascaron Au-Ag project. ON MINING, Americas Silver presented annual production results for 2017, and Alio Gold provided 2018 guidance for its San Francisco Mine in Sonora. ON FINANCING, Bacanora Minerals announced equity offering with NextView Capital for CAD$ 53,5M. First Majestic completed the offering of $USD 150M of convertible senior notes due 2023. Orla Mining has agreed to increase the size of its previously announced CAD$ 25.48 M bought deal offering to CAD$ 26.75M. Palamina Corp. announced a non-brokered private placement for $2M. Torex Gold announced a CAD$55 M bought deal. Consolidated Zinc announced a fundraising for $1.96 M. San Marco announced proceeds of $208K by exercised of warrants.  ON RESOURCES AND DEVELOPMENT, Consolidated Zinc announced positive results from a Scope Study at its Plomosas project, in Chihuahua, and plans more drilling to increase resource tonnage during Q1 2018. Mexican Gold announced that a drill contract for 3,000m has been signed to expand resources at its Las Minas project in Veracruz. Premier Gold Mines Limited announced plans to define and expand mineralization at its Mercedes Mine in Sonora. ON DEALS AND CORPORATE ISSUES, Mexus Gold US acquired in Sonora the Mabel-Dana project from Pacific Comox. Minera Alamos and Corex Gold announced that have entered into a definitive agreement to combine the two companies. MX Gold announced that the British Columbia Securities Commission issued a Cease Trade Order against the company as a result of failing to disclose Mineral reserves under National Instrument 43-101 on its Magistral project in Durango. For the same reason, the company was suspended by TSX. Canuc released that it has completed a vertical amalgamation with its wholly-owned subsidiary Santa Rosa Silver Mining Corporation to simplify the corporate structure of Canuc.  Vangold Mining granted stock options for 2.6M shares to officers, directors, consultants and employees. The company has received its Legal Identity Number to trade shares on the Stuttgart, Munich and Frankfurt Stock Exchanges.

ON MEXICO ISSUES

• Torex Gold announced that the illegal blockade at its ELG Complex Mine by an external Union has been peacefully removed by the Guerrero State authorities. Torex now has access to the entire mine facilities. Rule of law has finally been reestablished!

ON EXPLORATION

• Aztec Minerals / Kootenay Silver, released initial drill results of five of its phase 1, 15 holes, 3000m drill program at its Cervantes project in Sonora. The California and Jasper targets were drilled, where mineralization seems to be related to a porphyry gold (silver, copper) sulfide system. Drill highlights of the holes totaling 810m include 139m @71 g/t Au from surface, including 20m of 2.1g/t Au and 2m of 5.52 g/t Au; and 117m @ 0.63 g/t Au from 2-119m depth, including 43m of 1.18 g/t Au and 2m of 5.52 g/t Au, both in the California target. Two drill holes at the Jasper target intercepted anomalous but sub-economic copper-gold-molybdenum oxide mineralization from surface to bottom. The rest of the drilling program at Cervantes is underway.
• Harvest Gold, announced that a drill permit to conduct 14 diamond holes comprising 300-3500m in 5 out of 8 target areas on its Cerro Cascaron project in Chihuahua is expected to be received by Mid-February. Six holes will test Serpiente Dorada and Julieta targets, a 1.8km long Au-Ag soil anomaly that average 200 ppb Au with the peak being 1,380 ppb Au. Three holes more will test high grade Au-Ag veins at San Pedro target. Sampling results of the San Pedro vein returned 0.8m @ 19 g/t Au and 72 g/t Ag, within 2.6m @ of 6.5 g/t Au and 28 g/t Ag.  The drill program also considers some holes in Carabina target to test two areas of high grade Au-Ag surface samples, and in Cascarita target to test 350m of strike length along a larger (900m) polymetallic Ag-Pb-Zn vein breccia system defined by both underground and surface sampling. Adit sampling returned five channel sample cuts with widths of 1.4 to 3.3m with grades between 231 and 542 g/t equivalent Ag.  A phase two drill program consisting of an additional 3,700m in 12 holes have been planned to test Dolores, San Pedro, El Salto, Cascarita, La Puerta, Carabina and Julieta targets.
• San Marco Resources Inc., announced its plan for 2018 on its Mexican projects in Sonora. The company wants to drill the 1068 porphyry copper-gold-moly project; release assay results from the chip-channel sampling conducted at its new Chunibas Cu-Au discover; continue exploration at its Chunibas project and release metallurgical results.
• SilverCrest Metals Inc., released additional phase 2 drill results for its Las Chispas project in Sonora, expanding Babicanora high-grade footprint from 1km to 1.3Km along strike length. Potential is open along strike and to depth. Drilling returned significant intersections such as 3.5m of true width @05 g/t Au and 1,074.5 g/t Ag (4,153 g/t Ag equivalent), and 3.8m @ 12.3 g/t Au and 1,411 g/t Ag (2,321 g/t Ag equivalent). SilverCrest also expects to release a maiden resource estimate during the first quarter of 2018.

ON MINING

• Americas Silver Corporation announced annual 2017 production results from its Cosala, San Rafael and El Cajón mines in Sinaloa. During the year, 690.5K tonnes were milled @ 104 g/t Ag, to produce 2.05M Oz Ag, 25.4 M Lb Pb, 11.6 M Lb Zn, and 1.2M Lb Cu, with a cash cost of USD$ 9.37 per Ag Oz and an all-in sustaining cost of USD$ 13.12 per Ag Oz. Commercial production was declared at its San Rafael Mine on December 19, 2017. The company also drilled seven holes during the fourth quarter of 2017 at the Zone 120 deposit, which is part of its Cosala operation. Drill results include 23.4m of 259 g/t Ag, 0.40 g/t Au, and 0.5% Cu, and 7.2m of 335 g/t Ag, 0.23 g/t Au, and 0.55% Cu.  A 20,000m drill program is to test extensions and in-filling drilling of the Zone 120, and explore the potential connection in the one km distance between El Cajón and Zone 120 areas.
• Alio Gold Inc., provided 2018 guidance for its San Francisco Mine in Sonora. Alio expects to increase production on the range of 90K to 100K Oz Au this year compared to 83.5K Oz Au produced in 2017. To meet this goal, Alio has increased mining flexibility and the ability to deliver consistent ore feed to the leach pad. The total capital expenditure for 2018 is expected to be in the order of $2.5 to $3.0 M and will be spent on mine site exploration drilling and expansion of the heap leach pad phase 6B.

ON FINANCING

• Bacanora Minerals Ltd., announced that the equity offering with NextView Capital, a leading Chinese institutional fund management group, is ongoing and worth CAD$ 53.5M (Sonora Lithium, Sonora).
• First Majestic Silver Corp., First Majestic completed its previously offering of $USD 150M of convertible senior notes due 2023. Net proceeds are intended to be used to fund cost and expenses associated with the acquisition of Primero Mining Corp., and for general corporate purposes (Six mines in Mexico).
• Orla Mining Ltd., has agreed to increase the size of its previously announced CAD$ 25.5M bought deal offering to CAD$ 26.75M, along with an over-allotment option to purchase additional units at the offering price. If the over-allotment option is exercised, the aggregate gross proceeds of the offering will be CAD$ 30.77M (Camino Rojo, Zacatecas). Palamina Corp., announced a non-brokered private placement offering for aggregate gross proceeds of $2M (Santuario, Hidalgo).
• Torex Gold announced that has entered in a bought deal with a syndicate of underwriters CAD$ 55M on gross proceeds. Part of the net proceeds will be used for its working capital obligations during the re-start of ELG Mine Complex in Guerrero. Torex also announced an extension of waiver on liquidity covenant with its lenders, lowering the liquidity covenant from USD$ 50M to USD$ 30M (El Limón-Guajes, Guerrero).
• Consolidated Zinc Ltd., announced the raising of $1.96M gross proceeds (Plomosas, Chihuahua).

ON RESOURCES AND DEVELOPMENT

• Consolidated Zinc Ltd., completed a scope study with positive results to recommencing mining at its Plomosas Mine in Chihuahua, and announced that a feasibility study (FS) is ongoing targeting larger scale production than that assessed in the scope study, which was focused on mining Tres Amigos resources in level 5, comprising 544K tonnes @2% Zn, 2.1% Pb, and 14 g/t Ag. A drill program is planned to increase resources tonnage during the first quarter of 2018. The company also released high-grade results up to 35% Zn+Pb at its Alfonsitos prospect within Plomosas property, and high-grade Zn assays up to 42.7% Zn+Pb from underground areas nearby Juarez Mine.
• Mexican Gold Corp., announced that a drill contract for 3,000 m has been signed to expand resources at the El Dorado / Juan Bran and the high-grade El Dorado Dike contact zones at its Las Minas project in Veracruz. The drill program also includes the Cinco Señores and Nopaltepec mineralized zones to test geophysical targets and extend known areas of mineralization.
• Premier Gold Mines Limited announced a USD$ 10.8M exploration budget to define and expand mineralization at its Mercedes Mine in Sonora for 2018. The plan is to extend the underground workings in the Marianas deposit for detailed drilling and mine planning to establish reserves for mining in 2019. Full development of the Rey de Oro deposit is also a high priority and that is to include US$6.3 million in expansionary capital and US$6.8 million in sustaining capital. An updated mineral reserve and resource estimate for its Mercedes Mine during the first quarter of 2018.

ON DEALS AND CORPORATE ISSUES

• Mexus Gold US acquired in Sonora the Mabel-Dana project from Pacific Comox as a stock trade agreement. Historic reserve estimate are 41K Oz Au on 1.2M tonnes @7 g/t Au and 23 g/t Ag. A summary technical report is expected to be released in the next two weeks.
• Minera Alamos Inc. & Corex Gold Corporation entered into a definitive agreement to combine the two companies and become a Mexican gold development company with a market capitalization of about CAD$ 50M, CAD$ 6M in cash, and three high-quality Au-Ag projects: Santana-Los Verdes in Sonora, La Fortuna in Durango and Guadalupe de los Reyes in Sinaloa, each offering near-term production potential and low capital cost advantages.
• San Marco Resources Inc., announced the appointment of Christian Grijalva as its VP Exploration for San Marco and San Marco Resources Mexico S.A. de C.V. (Chunibas, Sonora).
• MX Gold Corp., announced that the British Columbia Securities Commission issued a Cease Trade Order after failing to disclose for first time mineral reserves under the national Instrument 43-101 on its Magistral project in Durango. Also, the TSX suspended the company to trade common shares as a result of the Cease Trade Order. MX Gold is working to address the deficiencies to get reinstatement of trading at TSX.
• Canuc Resource Corporation completed a vertical amalgamation with its wholly-owned subsidiary Santa Rosa Silver Mining Corporation to simplify the corporate structure of Canuc (San Javier Ag-Au project in Sonora). The shares of the subsidiary were cancelled without any repayment of capital in respect of them.
• Vangold Mining Corp., granted incentive stock options for 2.6M common shares at $0.20 per share for a five year term to officers, directors, consultants and employees. The company also announced that it has received its Legal Identity Number to trade shares on the Stuttgart, Munich and Frankfurt Exchanges (El Pinguino Mine in Guanajuato).

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, vuggy silica texture with hematite staining from a prospect in Jalisco State. Photo by Miguel A Heredia.