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

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On the image above, weakly silicified ridge on strongly argillitized volcanic rocks and minor quartz veining in clay pit in Hidalgo (Man-made produced differential erosion). Picture by Jorge Cirett.

By Jorge Cirett

During the 38th week of the year (September 17th to September 23rd, 2018), at least 24 press releases were announced by companies working in Mexico. Prize Mining, Kootenay, Silver Viper and Radius released advances in exploration. Excellon and Consolidated Zinc released news on mining. Prospero, Oceanus, Sable, Avino and Advance Gold reported news on financing. Capstone, Goldplay, Gold Resource, Excellon, Southern Silver, Endeavour and SilverCrest reported on development of its properties. Defiance Silver, and Valoro are to merge, Arian Silver is to change name whereas Kootenay and Radius reported deals on properties. ON MEXICO ISSUES, Goldcorp opened a health clinic in Zacatecas. ON EXPLORATION, in Sonora, Silver Viper started drilling on the Rubi-Esperanza claims of La Virginia project. In Chihuahua, Radius Gold is to drill the Amalia property. In Coahuila, Prize Mining initiated drilling at Manto Negro. ON MINING Excellon commented on production issues at Platosa, while Consolidated Zinc completed the first ore shipment from its Plomosas mine. ON FINANCING, Prospero Silver completed the private placement financing for CAD$356 K with Fortuna Silver. Oceanus raised $750 K. Sable entered a bought deal private placement for $2M. Avino Silver announced the pricing of US$4 M of an underwritten public offering. Advance Gold filed documents closing a financing for $255.3 K. ON RESOURCES AND DEVELOPMENT, Capstone, Goldplay, Gold Resource, Excellon, Southern Silver and Endeavour released drilling results aimed to better define or increase the resource base on their properties. SilverCrest presented an updated mineral resource estimate on its Las Chispas project. ON DEALS AND CORPORATE ISSUES, Defiance Silver and Valoro Resources signed a LOI on a merger. Kootenay optioned the Copalito property in Sinaloa. Arian Silver is to change name to Alien Metals. Pan American optioned the Amalia property in Chihuahua.

ON MEXICO ISSUES

  • GoldCorp opened a rural clinic in Mazapil, Zacatecas. With the investment of $40 M pesos GoldCorp executives opened the Unidad Médica Regional (Regional Medical Unit) in the Cedros community, within the Mazapil municipality of Zacatecas. The unit will be manned by IMSS-Prospera personnel, was presented as the most equipped rural clinic in the country, and is to provide 24 hours medical service to more than 2300 inhabitants.

ON EXPLORATION

  • Prize Mining Corp. initiated a 3,000 m diamond drilling program at its Manto Negro project in Coahuila. The program is focused on the El Granizo and Pilar Grande areas, which are 18 km apart, to test high-grade copper and silver surface oxide deposits.
  • Kootenay Silver Inc. presented encouraging rock-chip results from its recently optioned Copalito property in Sinaloa. Highlighted samples returned: 1.0 m @ 0.23 g/t Au, 104 g/t Ag, 0.13% Pb, 0.67% Zn; 1.5 m @ 0.50 g/t Au, 32 g/t Ag, 0.85% Pb, 0.40% Zn; 1.9 m @ 2.36 g/t Au, 50 g/t Ag, 0.50% Pb, 0.72% Zn; 1.5 m @ 0.45 g/t Au, 122 g/t Ag; 1.5 m @ 0.11 g/t Au, 1,700 g/t Ag, 0.26% Pb, 0.07% Zn; 1.0 m @ 0.40 g/t Au, 1,030 g/t Ag, 0.08% Pb, 0.10% Zn on La Chiva vein, 2.0 m @ 0.02 g/t Au, 474 g/t Ag, 0.26% Pb, 0.87% Zn; 1.10 m @ 0.15 g/t Au, 309 g/t Ag; 0.11% Pb on the Agua vein and 1.0 m @ 1.23 g/t Au, 1,155 g/t Ag; 0.96% Pb, 1.68% Zn; 1.0 m @ 1.82 g/t Au, 396 g/t Ag, 0.70% Pb, 1.17% Zn; 1.9 m @ 0.04 g/t Au, 301 g/t Ag; 0.04% Pb, 0.06% Zn on the 5 Señores vein.
  • Radius Gold Inc. announced the arrival of two drill rigs and commencement of drilling at its Amalia property in Chihuahua. “The drill program is operated by Radius and funded by Pan American Silver, under a joint venture agreement”. The targets to be tested are Campamento, Guadalupe and Dulces. The three comprise a continuum from high level to deeper epithermal mineralization in rough terrain, with stockwork zones, structurally controlled breccias and veins with both bulk mining and high-grade targets.
  • Silver Viper Minerals Corp. announced the completion of a drill camp and the initiation of drilling at the La Virginia project in eastern Sonora. Phase I drilling will be concentrated on the Rubi-Esperanza group of claims, with a combination of confirmation drilling (25%) over known mineralized trends and exploration drilling (75%) on untested targets. “Confirmation holes are planned in and around the historic La Virginia and Con Virginia workings and seek to confirm previously reported widths and grades of the main mineralized trend. These holes are designed to complement existing data, testing gaps in the previous work and testing the main trends for continuity and grade. Exploration holes are planned for nearby prospect areas: La Colonia, La Cascada and El Rubi. Additional prospects may be tested during Phase I as the campaign progresses”.

ON MINING

  • Excellon Resources Inc. anticipates “production in the quarter to be approximately 300,000 AgEq ounces due to operational issues related to surveying and planning personnel and lower byproduct prices. The operational issues have now been addressed and the operation is getting back on track”.
  • Consolidated Zinc Ltd. completed the first shipment of ore from its Plomosas mine in Chihuahua. “The Company plans to deliver 100 tonnes per day to the Santa Eulalia concentrator for the rest of this month for processing. Thereafter the Plomosas mine will scale up operations in order to deliver feed to the concentrator at or above 10,000 tonnes per month within nine months”.

ON FINANCING

  • Prospero Silver Corp. completed its recently announced private placement financing with Fortuna Silver Mines Inc., raising aggregate gross proceeds of CAD$356 K to test Prospero’s Bermudez project in Chihuahua.
  • Oceanus Resources Corp. closed a non-brokered private placement, raising $750K (El Tigre, Sonora).
  • Sable Resources Ltd. entered into an agreement with Haywood Securities Inc. in a bought deal private placement for total gross proceeds of $2 M (Margarita, Chihuahua).
  • Avino Silver & Gold Mines Ltd. announced the pricing of 6.2 M common shares and an equal amount of warrants at US$0.65 per share and associated warrant at US$0.80. The shares amount to US$4 M of underwritten public offering (Avino, Durango).
  • Advance Gold Corp. filed documents on the TSX to close its previously announced private placement financing for gross proceeds of $255.3 K. The financing was effected with two insiders of the company (Tabasqueña, Zacatecas).

ON RESOURCES AND DEVELOPMENT

  • Capstone Mining Corp. disclosed high-grade results from step-out drilling at its Cozamin mine in Zacatecas, which are to be included in a re-estimation of mineral resources later this year. Since the last estimation on March 2018, Capstone has drilled 46 additional holes, with drill intercepts underpinning the decision to elaborate the new resource estimation. Selected true width intercepts comprise 15.4 m @ 3.88% Cu, 0.12% Zn, 0.01% Pb, 63 g/t Ag, 0.02 g/t Au; 8.0 m @ 2.08% Cu, 0.07% Zn, 0.01% Pb, 70 g/t Ag, 0.15 g/t Au; 17.1 m @ 2.19% Cu, 0.07% Zn, 0.01% Pb, 39 g/t Ag, 0.01 g/t Au; 14.8 m @ 5.34% Cu, 0.8% Zn, 0.03% Pb, 112 g/t Ag, 0.05 g/t Au; 9.7 m @ 2.26% Cu, 0.07% Zn, 0.01% Pb, 29 g/t Ag.
  • Goldplay Exploration Ltd. released additional results from sampling historical core drill holes (2010) from its San Marcial project in southern Sinaloa. “The new results expand known mineralization 200 meters down dip beyond the historic NI 43-101 resource area…” and delineate a new discovery subparallel to the main zone. Highlighted true width intervals comprise 4.0 m @ 63 g/t Ag, 1.0% Pb, 1.3% Zn, 0.07 g/t Au; 9.0 m @ 73 g/t Ag, 0.09% Pb, 0.2% Zn, 0.07 g/t Au; 3.0 m @ 139 g/t Ag, 0.03% Pb, 0.15% Zn, 0.04 g/t Au (including 1.0 m @ 501 g/t Ag, 0.09% Pb, 0.4% Zn, 0.08 g/t Au); 2.0 m @ 120 g/t Ag, 0.2% Pb, 0.7% Zn, 0.1 g/t Au; 16.0 m @ 57 g/t Ag, 0.1% Pb, 0.4% Zn, 0.04 g/t Au. The new mineralization style discovered is comprised of pervasive stockwork of millimetric veins hosted by a silicified epiclastic volcanic sequence, with a core length of 47 m showing grades from 0.2 to 1.1 g/t Au.
  • Gold Resource Corp. presented drill highlights from its Alta Gracia 2018 drill program in Oaxaca. The Alta Gracia project hosts the Mirador mine, located 16 km NW from the company’s Aguila project and mineral processing plant. Core length highlighted intervals on the Independencia and Victoria veins comprise 10.30 m @ 0.85 g/t Au, 1,052 g/t Ag; 5.18 m @ 0.55 g/t Au, 241 g/t Ag; 9.59 m @ 0.36 g/t Au, 430 g/t Ag; 2.70 m @ 1.67 g/t Au, 902 g/t Ag. Gold Resource “believes it has discovered a wide, high-grade silver ore shoot within the Independencia vein”, which is located 500 m SW along strike from its Mirador Mine.
  • Excellon Resources Inc. informed on expansion, infill and definition drill results from the 623 Manto and Rodilla manto areas on its Platosa mine in Durango. Highlighted core length intervals comprise 10.5 m @ 0.1 g/t Au, 397 g/t Ag, 2.6% Pb, 4.1% Zn; 4.7 m @ 0.1 g/t Au, 266 g/t Ag, 2.6% Pb, 2.5% Zn; 9.1 m @ 122 g/t Ag, 2.0% Pb, 0.5% Zn; 9.0 m @ 56 g/t Ag, 0.6% Pb, 1.1% Zn; 2.7 m @ 0.4 g/t Au, 783 g/t Ag, 8.2% Pb, 11.1% Zn; 3.5 m@ 489 g/t Ag, 1.5% Pb, 2.3% Zn; 5.5 m @ 2.9 g/t Au, 1,700 g/t Ag, 15.4% Pb, 21.4% Zn; 15.1 m @ 0.4 g/t Au, 1,014 g/t Ag, 10.9% Pb, 26.0% Zn; 6.5 m @ 268 g/t Ag, 4.0% Pb, 4.9% Zn. These results were not included on the previous resource estimate (Sept 7, 2018) and represent the potential for additional mineral resources.
  • Southern Silver Exploration Corp. informed additional metallurgical test work on the Skarn Front deposit from the Cerro Las Minitas Project has resulted in both the successful separation of a potential “saleable grade” copper concentrate as well as the generation of a cleaner zinc concentrate grading above 50% zinc without sacrificing zinc, lead or silver recoveries.The test work on the Skarn Front deposit recovered three concentrates: Cu-Ag; Pb-Ag and Zn-Ag (for recoveries of 67.7% Cu, 82.5% Pb, 89.5% Zn and 90.6% Ag).
  • Endeavour Silver Corp. reported high-grade infill drilling results from its Terronera property in Jalisco. Some highlighted true width intercepts: 3.9 m @ 2.6 g/t Au, 86 g/t Ag; 3.4 m @ 2.1 g/t Au, 136 g/t Ag; 3.3 m @ 0.9 g/t Au, 782 g/t Ag; 5.3 m @ 1.2 g/t Au, 783 g/t Ag; 4.2 m @ 0.7 g/t Au, 524 g/t Ag; 6.1 m @ 0.9 g/t Au, 1,297 g/t Ag; 7.7 m @ 4.8 g/t Au, 169 g/t Ag; 9.8 m @ 2.4 g/t Au, 197 g/t Ag; 3.7 m @ 4.5 g/t Au, 102 g/t Ag; 8.0 m @ 3.0 g/t Au, 85 g/t Ag; 5.6 m @ 7.1 g/t Au, 185 g/t Ag; 4.6 m @ 3.1 g/t Au, 131 g/t Ag; 8.2 m @ 3.4 g/t Au, 49 g/t Ag; 8.7 m @ 6.2 g/t Au, 90 g/t Ag; 1.8 m @ 13.2 g/t Au, 340 g/t Ag.  “Mineralization in the Terronera vein has been intersected over 1400 m long by 500 m deep, and it remains open at depth”.
  • SilverCrest Metals Inc. released an updated mineral resource estimate for its Las Chispas property in Sonora. Inferred Mineral Resources are estimated at 4.3 M tonnes grading 3.68 g/t Au, 347 g/t Ag, or 623 g/t AgEq, containing 551.8 K Oz Au, 48.3 M Oz Ag, or 86.7 M Oz AgEq, using a 150 AgEq cut-off grade and minimum true vein width of 1.5 M. “The combination of the Area 51 zone (Babicanora Vein) and adjacent Babicanora Norte Vein hosts a combined Inferred Resource of 1.6 million tonnes grading 6.97 gpt gold and 568 gpt silver, or 1,091 gpt AgEq containing 56.3 million ounces of AgEq”. Eight of the 30 veins in the district were used for the updated resource estimate. .

ON DEALS AND CORPORATE ISSUES

  • Defiance Silver Corp. and ValOro Resources Inc. entered into a letter of intent (LOI) to complete a friendly merger, on which the combined company will continue under the name of Defiance Silver Corp.. Defiance owns the San Acacio silver project in Zacatecas, whereas ValOro owns the Tepal gold-copper project in Michoacan. ValOro shareholders will receive 0.71 common shares of Defiance for each share of ValOro held.
  • Kootenay Silver Inc. recently optioned the Copalito property in Sinaloa. Kootenay can acquire 100% ownership on the concession by making staged payments over a 4 year period totaling an aggregate of US$985 K. The property consists of seven concessions totaling 3,700 hectares, with a classic low sulfidation epithermal vein system with numerous small old workings and no evidence of historic exploration drilling.
  • Arian Silver Corp. informed on a favorable vote in its annual general meeting to change the name of the company to Alien Metals Ltd. (San Celso, Zacatecas).
  • Radius Gold Inc. granted Pan American Silver Corp. the option to earn up to an initial 65% interest in the Amalia project in Chihuahua, by making staged cash payments to Radius totaling US$1.5M (US$100 K already paid) and expending US$2 M in exploration over four years. Pan American can earn an additional 10% by advancing the property to preliminary feasibility study. Initially Radius will be the project operator.

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, weakly silicified ridge on strongly argillitized volcanic rocks and minor quartz veining in clay pit in Hidalgo (Man-made produced differential erosion). Picture by Jorge Cirett.

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