Highlights on the First Week of September, 2018. Mining and Exploration News in Mexico

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By Jorge Cirett

During the 36th week of the year (September 3rd to September 9th, 2018), at least 18 press releases were announced by companies working in Mexico. Prize Mining, Minaurum, Azure, and Kootenay released advances in exploration. Telson Mining released some clarifications to its operating Q2 2018 results. Prospero reported news on financing. Goldplay, Consolidated Zinc, Torex, Southern Silver, Impact Silver, Magellan Gold, and Aura Minerals reported on development of its properties. Golden Minerals, Sonoro and GoGold reported deals on properties or royalties. ON MEXICO ISSUES, AMLO announced cabinet posts in Economy, including the new Sub-secretary of Mining, Francisco Quiroga. The Mexican Core Shack now counts with displays from three properties in Chihuahua, two in Durango, two in Estado de Mexico, one in Guerrero and one in Puebla. ON EXPLORATION, In Sonora, Minaurum has resumed drilling at its Alamos Silver property. Azure reported high-grade surface results from its Oso Negro property and Kootenay released surface sampling results from its Malé project. In Coahuila Prize Mining announced a coming drill campaign on its Manto Negro project.  ON MINING Telson Mining presented some clarifications on its Q2 report, and some figures on production costs from the Campo Morado mine.  ON FINANCING, Prospero Silver announced a strategic investment by Fortuna Silver for US$270 K. ON RESOURCES AND DEVELOPMENT, Goldplay released results from its San Marcial project in Sinaloa. Consolidated Zinc is to start mining in Plomosas, Chihuahua. Torex presented an updated technical report and a new mine plan on its El Limon-Guajes property in Guerrero. Southern Silver presented assay results from drilling at its Cerro Las Minitas property in Durango. Impact Silver announced the discovery of a new ore shoot on its Zacualpan property in Estado de Mexico. Magellan is planning to mine on its El Dorado property in Nayarit. Aura Minerals filed a FS and technical report on the restarting of its Aranzazu mine in Zacatecas. ON DEALS AND CORPORATE ISSUES, Golden Minerals sold its remaining interest on the Celaya property in Guanajuato to The Electrum Group for US$3 M. Sonoro optioned an inner concession within its Cerro Caliche property for US$100 K in two payments. GoGold sold its 2% NSR on the Santa Gertrudis project in Sonora to Metalla Royalty.


  • Andres Manuel Lopez Obrador (AMLO), the president elect in Mexico, announced cabinet posts within the Secretaría de Economía (Bureau of Economy) for its incoming government. Graciela Márquez, as Secretary, is to be supported by Luz Maria de la Mora in Subsecretaría de Comercio Exterior (Foreign Commerce), Ernesto Acevedo Hernández in Subsecretaria de Industria y Comercio (Industry and Commerce), and Francisco Quiroga, on charge of the Subsecretaría de Minería (Mining). Francisco Quiroga was director of International Planning for Grupo Villacero, and worked for a couple of years at Arcelor Mittal México. He has master degrees from Yale and New Zealand, with expertise in international metal markets, steel, commodities and mining, as well as anti-dumping practices and industry. The Mexican Core Shack added images of drill core from Almaden’s Ixtaca project in Puebla, at https://gambusinoprospector.com/mexican-core-shack/puebla/ixtaca/ . The Mexican Core Shack now displays three properties in Chihuahua, two in Durango, two in Estado de Mexico, one in Guerrero and one in Puebla.


  • Prize Mining Corp. commenced the phase II exploration program on its Manto Negro project in Coahuila. This phase will consist of 3,000 m of diamond drilling, “3D modeling of drill intersections and artisanal underground workings”, a GIS compilation and preliminary metallurgical test work. At El Granizo, “strong copper mineralization is exposed on surface for a strike length of 550 metres and dips moderately to the southwest. Mineralization is hosted in the San Marcos red-bed sandstone close to the contact with the overlying Cupido limestone”. At Pilar Grande drilling will test a 200 by 50 m area containing the underground workings.
  • Minaurum Gold Inc. has resumed drilling at the Alamos Silver project in Sonora. The 5,000 m (or greater) drill program is to focus in seven untested veins exposed at high structural levels in down-dropped blocks outside of the historic mining corridor. “One hole will test the Minas Nuevas vein at depth and a second hole will test the Púlpito and Cotera vein zone projections. Eight more holes are planned on targets on the completely virgin eastern side of the historic La Quintera – Promontorio vein zone, including the Tigre, Ana, and Amalia vein zones, and the breccia body located south of Amalia and Tigre; as well as the Promontorio Sur vein zone to the south of Promontorio vein. The drill program will be expanded as new targets are generated.”
  • Azure Minerals Ltd. reported high grade assays from surface sampling at its Oso Negro property in Sonora. The project comprises a 1,119 ha concession application and an adjoining 156 ha concession purchased for US$35 K. Both concessions contain epithermal mineralization like quartz veins and quartz stockworks in zones of strong alteration, with galena and sphalerite within the quartz veins, which can attain widths of up to 5 m and lengths of 800 m. Of 88 samples collected, 37 returned over 100 g/t Ag, including 9 samples over 1,000 g/t Ag, and a peak of 2,680 g/t Ag. Of 88 samples collected, 37 samples returned over 1.0 g/t Au, including 7 samples over 5.0 g/t Au and up to 100.5 g/t Au.
  • Kootenay Silver Inc. released additional high-grade sampling results on its Malé project in Sonora. Thirty three sample collected from old pits and small trenches returned 19 samples with values over 1.0 g/t Au, with the highest running 12.1, 17.0, 24.7 and 36.0 g/t Au. “The Malé gold project is a granitic-hosted gold dominant polymetallic vein and vein stockwork system covering an area of 1500 x 1500 meters with numerous showings highly anomalous in gold…..Mineralization occurs as narrow veins, veinlets and stockworks of quartz with or without sulphides within structures projecting in a dominant northeast trend and a secondary northwest trend”.


  • Telson Mining Corp. presented some clarifications to its Q2 2018 financial report (please see press release for details). The “Campo Morado Mine has achieved direct site costs for mining, milling and administration during Q2 of approximately US$56.6, US$51.6 and US$51.8 per tonne respectively for, April, May and June. These current direct site costs are approximately 36% lower than the estimated direct site costs of US$72.26 per tonne used for the same categories in Telson’s recently published independent Preliminary Economic Assessment and approximately 40% lower than the previous operator’s last year of production during 2014”.


  • Prospero Silver Corp. arranged a US$270 K strategic investment from Fortuna Silver Mines Inc. Fortuna currently owns 20.3% of Prospero current and outstanding shares, and this private placement is to take that proportion to 26.9%. The proceeds will be allocated to test the Bermudez project in Chihuahua with a 3-hole 1,500 m drill program.


  • Goldplay Exploration Ltd. disclosed additional results from sampling of the historical core drill holes completed in 2011 on the project San Marcial, in Sinaloa. Highlighted true width (TW) new results from two holes comprise 53.6 m @ 57 g/t Ag, 0.1% Pb, 0.4% Zn (including 5.6 m @ 253 g/t Ag, 0.2% Pb, 0.6% Zn); 46.5 m @ 57 g/t Ag, 0.3% Pb, 0.4% Zn (including 15.5 m @ 115 g/t Ag, 0.5% Pb, 0.7% Zn, same that include 3.25 m @ 411 g/t Ag, 1.9% Pb, 2.2% Zn).
  • Consolidated Zinc Ltd. is to start mining at its Plomosas project in Chihuahua. “The CZL Board has approved the development plan and mining will commence immediately with monthly receipts commencing mid October 2018”. CZL secured a finance package by way of convertible notes. The mined ore will be processed at Grupo Mexico’s plant in Santa Eulalia, Chihuahua, and the concentrate is to be sent to the same group’s smelter in San Luis Potosi. CZL “is confident that the first cashflow can be achieved for a capital cost less than US$500,000 and the C1 operating costs are expected to be less than US$0.50/lb Zinc after by-product credits”.
  • Torex Gold Resources Inc. completed an updated technical report that includes a life of mine plan (LOM) of nine years and an increased average gold production of 430 K Oz Au per year, from 2019 to 2023 at its Limón-Guajes mine in Guerrero.” The TR also contains an updated Media Luna Preliminary Economic Assessment (PEA), with an after-tax NPV (5%) of $582M, and an after-tax IRR of 27%”.  El Limon Guajes updated TR, Sept 20181
  • Southern Silver Exploration Corp. reported assay results from initial core drilling on the 12,000 m 2018 drill program at its Cerro Las Minitas property in Durango. Highlighted true width (TW) intervals comprise 15.1 m @ 280 g/t Ag, 0.18% Cu, 0.9% Pb, 0.1% Zn (including 4.4 m @ 598 g/t Ag, 0.4% Cu, 2.1% Pb, 0.1% Zn) on the Skarn Front deposit, and 0.6 m @ 79 g/t Ag, 0.4 g/t Au, 1.2% Cu, 0.1% Pb, 14.1% Zn; 2.0 m @ 88 g/t Ag, 0.3 g/t Au, 0.2% Cu, 1.1% Pb, 2.6% Zn in Las Victorias zone, which extend mineralization for over 100 m to the southeast.
  • Impact Silver Corp. announced the discovery of a new ore shoot on the Lipton vein of the Guadalupe mine at its Zacualpan property in Estado de Mexico. To date the new zone has been drilled over a length of 120 m and vertical distance of 80 m, remaining open in all directions. Some of the highlighted true width intervals comprise 10.57 m @ 201 g/t Ag, 0.13 g/t Au, 0.2% Pb, 0.5% Zn (including 4.18 m @ 381 g/t Au, 0.09 g/t Au, 0.4% Pb, 1.1% Zn); 7.74 m @ 466 g/t Ag, 0.13 g/t Au, 0.5% Pb, 1.1% Zn; 8.82 m @ 306 g/t Ag, 0.11 g/t Au, 0.2% Pb, 0.5% Zn; 1.53 m @ 240 g/t Ag, 0.04 g/t Au, 0.7% Pb, 2.5% Zn; 2.87 m @ 308 g/t Au, 0.19 g/t Au, 0.3% Pb, 0.4% Zn.
  • Magellan Gold Corp. is focused on advancing El Dorado project in Nayarit towards production, planning to truck the ore to the SDA mill for processing. “The drilled resource appears to be sufficient to support an underground mining operation for five years at a mining rate of 100 tonnes per day….”. Magellan is applying for the necessary environmental and blasting permits, as well as quotes for contract mining.
  • Aura Minerals Inc. filed the NI-43-101 Feasibility Study and Technical Report on the Aranzazu mine in Zacatecas.


  • Golden Minerals Co. has sold its remaining interest on the Celaya property in Guanajuato, to The Electrum Group LLC. Golden Minerals is to receive a payment of US$3.0 M for selling 100% of its remaining mining concessions and related interests in the Celaya project located in Guanajuato.
  • Sonoro Metals Corp. optioned from a private owner the 9 ha “El Colorado” mining concession, within its Cerro Caliche project in Sonora. “The Option Agreement provides for Sonoro to acquire a 100% interest in El Colorado for total consideration to the Vendor of US$100,000, of which US$50,000 has been paid and the balance due in 6 months”. Seven thorough-going veins surrounded by quartz sotckwork areas and sheeted quartz veinlet zones present limited mining evidenced by tunnels, pits and trenches.
  • Metalla Royalty & Streaming Ltd. entered with GoGold Resources Inc. into an agreement to purchase a 2% net smelter return royalty on the Santa Gertrudis property in Sonora, for US$12 M in cash. The agreement is subject to a right of first refusal held by the owner of the project, Agnico Eagle Mines Ltd., right that has to be exercised with 45 days.

Content like what you have just read can be seen at https://gambusinoprospector.com/ and at LinkedIn’s Mexico Mineral Exploration Group.

On the image above, argillitized volcanic rocks above the famous Vizcaína vein in the Pachuca District, Hidalgo. Picture by Jorge Cirett.

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