The Mining and Exploration News in Mexico: Highlights on the Third Week of October, 2019

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By Jorge Cirett

During the 42nd week of the year (October 14th to October 20th, 2019), at least 29 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, The Congress dominated by Morena approved a bill dramatically changing the rules od operation of the Mining Fund for 2020 . ON EXPLORATION, in Sonora, Magna Gold released drilling results for its Mercedes project, and announced new exploration targets. In Sinaloa, Oroco Resource commenced work at the Santo Tomas project. In Durango, Gainey Capital commenced drilling at Las Margaritas. In Veracruz, Azucar Minerals discovered another mineralized center at El Cobre.  ON MINING, Sierra Metals, Fortuna Silver, Avino Silver, Gold Resource and McEwen Mining released third quarter 2019 production results. Argonaut Gold reported an accident that resulted in the death of two contractor’s employees at La Colorada, in Sonora. ON FINANCING, Kootenay Silver closed a $2 M private placement. Gainey Capital granted options to directors, officers, employees and consultants. Candelaria Mining discontinued a private placement due to unfavorable market conditions. ON RESOURCES AND DEVELOPMENT, SilverCrest Metals reported development mining sampling has returned less tonnage but more AgEq ounces at its Las Chispas property in Sonora. Azure minerals is planning a two-stage drill program at the Loma Bonita gold target of its Alacran property in Sonora. ON DEALS AND CORPORATE ISSUES, Tamino Minerals elaborated on the company’s history and incoming work at its El Volcan project in Sonora. Bacanora Lithium presented the current situation of Ganfeng’s investment on the company. Megastar Development entered into an option agreement regarding the Cerro Minas concession in Oaxaca. Riverside Resources released information on its BHP financing agreement for generative copper exploration in NW Sonora. Golden Minerals entered into an option agreement with Magellan Gold to sell its interest in the Santa Maria project in Chihuahua. ON SOCIAL RESPONSIBILITY. The Grupo Mexico Foundation donates 175 K trees in Queretaro. Ternium granted scholarships to 145 students. Esperanza Silver presented a sustainable project in Morelos.


  • The Camara de Diputados (Deputies Chamber, or Congress) approved legal reforms concerning the use of the Mining Fund. The changes were approved only by the Morena party and allied members, taking away the planning and overseeing of funds (generated by a special tax on mining) from local mining municipalities, enforcing what is seen as federal discretional use.


  • Gainey Capital Corp. commenced a diamond drilling campaign at the Las Margaritas project in Durango. This initial phase comprises 1,080 m of drilling in 11 holes focused on the best mineralization exposed at the surface, where sampling has returned up to 73.7 gpt Au.
  • Azucar Minerals Ltd. Announced the discovery of another mineralized center at its El Cobre project in Veracruz. Two holes tested the El Primo target area, defined by a gold, copper and molybdenum soil anomaly. Relevant intervals comprise 5.25 m @ 0.60 gpt Au, 0.26% Cu and 8.45 m @ 0.20 gpt Au, 0.29% Cu in one hole and 200 m @ 0.40 gpt Au, 0.24% Cu in another hole, including 86.50 m @ 0.70 gpt Au, 0.42% Cu; which includes 55.60 m @ 0.94 gpt Au, 0.56% Cu; which includes 10 m @ 1.44 gpt Au, 0.85% Cu. This target is at least a kilometer away from other already identified mineralized centers within the property.
  • Oroco Resource Corp. commenced technical field work, initial environmental baseline studies and permitting at its Santo Tomas project in Sinaloa. This work is to be followed by a 3D induced polarization geophysical survey and the first phase of confirmation diamond drilling. The company holds an option to acquire a 56.7% interest in the 1,173 ha core concessions of the project, and might increase that interest up to an 81.0% interest with a project investment of up to CAD$30 M. Oroco also holds a 77.5% interest in 7,808 ha surrounding and adjacent to the core concessions.


  • Argonaut Gold Inc. informed on an accident involving a contractor that resulted in death by electrocution of two individuals while performing maintenance work on a haul truck at La Colorada mine in Sonora. Operations were suspended on October 11 and resumed on October 12, 2019.
  • Sierra Metals Inc. reported third quarter 2019 production, including figures from its Mexican operations. At Bolivar in Chihuahua, 331.8 K tonnes were processed at a 3,792 tonnes per day rate (tpd) @ 0.86% Cu, 20.5 gpt Ag, 0.31 gpt Au, recovering 81.3% Cu, 79.0% Ag, 62.3% Au to produce 5.115 M Lb Cu, 173 K Oz Ag, 2,173 Oz Au. At Cusi, also in Chihuahua, 70.4 K tonnes were processed at an 805 tpd rate @ 141.5 gpt Ag, 0.15 gpt Au, 0.14% Pb, recovering 84.6% Ag, 39.6% Au, 78.3% Pb to produce 271 K Oz Ag, 135 Oz Au, 168 K Lb Pb.
  • Fortuna Silver Mines Inc. disclosed production results for the third quarter 2019, including figures from its Mexico operations. At San Jose in Oaxaca, 268 K tonnes were milled @ 219 gpt Ag, 1.40 gpt Au, recovering 82.4% Ag, 90.6% Au, to produce 1.71 M Oz Ag, 10,942 Oz Au, at a cash cost per ton of US$70.80.
  • Avino Silver & Gold Mines Ltd. released third quarter 2019 production results from its Avino property in Durango. Consolidated figures comprise 202.7 K tonnes processed @ 44 gpt Ag, 0.33 gpt Au, 0.33% Cu, recovering 76% Ag, 67% Au, 68% Cu to produce 221.9 K Oz Ag, 1,448 Oz Au, 1.38 M Lb Cu. At the Avino mine 122.2 K tonnes were processed @ 41 gpt Ag, 0.31 gpt Au, 0.58% Cu to produce 139.4 K Oz Ag, 900 Oz Au, 1.3 M Lb Cu; 17.8 K tonnes were processed from the San Gonzalo mine stockpiles (the mine is now closed) @ 56 gpt Ag, 0.41 gpt Au to produce 29.6 K Oz Ag, 194 Oz Au; From historic above ground stockpiles 62.6 K tonnes were processed @ 47 gpt Ag, 0.33 gpt Au, 0.33% Cu to produce 232.1 K OZ Ag, 1,528 Oz Au, 311 K Lb Cu.
  • Gold Resource Corp. reported preliminary production for the third quarter 2019, including figures from its operations in Mexico. At the company’s Oaxaca Mining Unit, a total of 7,462 Oz Au, 473.8 K Oz Ag, 492 tonnes of copper, 2,459 tonnes of lead and 6,057 tonnes of zinc were produced.
  • McEwen Mining Inc. released production details for the third quarter 2019, including figures from its Mexican operations. At its El Gallo property in Sinaloa, 3,018 Oz Au were produced by residual leaching of the heap leach pad.


  • Kootenay Silver Inc. closed its non-brokered private placement of $2 M that was fully subscribed by Ninepoint Silver Equities Class with Sprott Asset Management LP acting as sub-advisor. (Columba, Chihuahua).
  • Candelaria Mining Corp. announced that a private placement previously announced has been discontinued due to unfavorable market conditions. The company intends to conduct an offering on a non-brokered private placement basis for aggregate gross proceeds of up to $700 K. Closing of the new private placement is expected to be on November 30, 2019 (Caballo Blanco, Veracruz).
  • Gainey Capital Corp. granted 1.5 M incentive stock options to its directors, officers employees and consultants (Las Margaritas, Durango).


  • SilverCrest Metals Inc. informed development work has intersected better grades than those in the resources estimate for the Babicanora vein at its Las Chispas property in Sonora. Underground mining along 180 m of the Babicanora vein (20% of the mineralized length on area 51) reported 33% less tonnes, but 65.7% more AgEq ounces for the interval. In total 4,170 tonnes were extracted @ 15.18 gpt Au and 1,071 gpt Ag (2,209 gpt AgEq), while the resource estimate in this zone graded 4.48 gpt Au and 556 gpt Ag (892 gpt AgEq). Underground sampling returned up to 2.8 m @ 94.52 gpt Au, 8,320 gpt Ag (15,409 gpt AgEq). SilverCrest plans to have a stockpile of 25-30 K tonnes of high-grade material containing 800 K to 1 M Oz AgEq, extracted by development work to the end of 2019.
  • Azure Minerals Ltd. is planning a two-stage drill program on resource expansion at Loma Bonita, within the Alacrán project in Sonora. High-grade intersections on the resource boundary, like 47 m @ 2.8 gpt Au, 33 gpt Ag and 67 m @ 1.6 gpt Au, 21 gpt Ag (both from surface) favor the continuity of the ore body. First pass sampling of historical workings south of Cerro Alacrán returned up to 3,675 gpt Ag, 21.1 gpt Au, 2.3% Cu, 33.5% Pb, 21.0% Zn. Applications for environmental approval have been submitted.


  • Tamino Minerals Inc. elaborated into the long and convolute company history and financing (El Volcan, Sonora).
  • Bacanora Lithium PLC. Announced the completion of the “Invested Agreement and Offtake Agreement” which together make the “Strategic Investment” of Ganfeng Lithium Co.. The relevant approvals have been completed and Bacanora has now received £21.96 M of funds from Ganfeng, for a 29.99% equity interest in Bacanora Lithium PLC and a 22.5% JV investment directly in the Sonora Lithium Project. The vice-president of Wangfeng was appointed a director of Bacanora. “The Bacanora project team in Mexico continues to progress the final design work for the mine, concentrator and kiln sections of the processing plant. The Ganfeng technical team has initiated work on the hydrometallurgical circuit…”
  • Tamino Minerals Inc. informed it is going to present a NI 43-101 report on its El Volcan property in Sonora once a registration statement is filed to the SEC and the company becomes fully reporting.
  • Megastar Development Corp. has entered into an option agreement with Gunpoint Exploration Ltd. to acquire 100% interest in the 899 ha Cerro Minas mining concession (title (234333) in Oaxaca. The agreement entails the payment of US$10 K and 100 K Megastar shares on the effective date, US$20 K and 150 K shares on the first anniversary, US$30 K and 250 shares on the second anniversary and US$40 K and 300 K shares on the third anniversary, with Gunpoint retaining a 1.5% NSR royalty, of which 0.5% can be bought by US$1.0 M.
  • Riverside Resources Inc. informed that the first two to three quarters of the exploration financing agreement with BHP for generative copper exploration in NW Sonora will be centered on regional prospect generation. The program envisages a minimum two-year US$2 M budget, and upon advancing projects to the operation phase (Phase II), BHP has the option to fund up to US$5 M for drilling and other exploration expenditures. Riverside is to receive US$200 K by project that makes it to the second phase.
  • Golden Minerals Co. entered into an option agreement with Magellan Gold Corp. to sell its rights to acquire a 100% interest in the Santa Maria project, in Chihuahua. Magellan has a 150 days due diligence period to decide whether to execute the option, on which it has to pay $1 M cash, with Golden Minerals retaining a 6.5% royalty until a total of $3 M has been paid as royalty, with Golden retaining a 3% NSR royalty for the life of the mine. If Magellan fails to get the mine to production within one year from closing the deal, Golden will get back the property.


  • The Grupo Mexico Foundation donates 175 plants and trees in Queretaro. Grupo Mexico is aiding to reach the goal of planting 250 thousand trees in the Queretaro municipality. Grupo Mexico is the number one producer of tree saplings in the country.
  • Ternium delivers scholarships and supports education in a mining zone. The Roberto Rocca Education Program and the Universidad de Colima granted this year scholarships to 145 students from universities in Mexico City, Nuevo Leon, Coahuila, Veracruz, Puebla, Colima and Michoacan. Since its inception in 2006, the Roberto Rocca Education Program has granted 3,000 scholarships.
  • Esperanza Silver (Alamos Gold) presented a sustainable project for the Esperanza project in Morelos. The project involves the company’s involvement in the remediation of a nearby community landfill, and the collaborative support on the Lagunas de Zempoala, the national park Tepozteco, the biological corridor Ajusco-Chichinautzin as well as the state parks El Texcal, Sierra Montenegro and the biosphere reserve Sierra de Huautla.

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

On the image below:  Gneiss hosted quartz-feldspar veinlet from a project in Oaxaca. Picture by Jorge Cirett.

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Cierran fondo minero para los municipios

Cierran fondo minero para los municipios

La Comisión de Hacienda de la Cámara de Diputados aprobó reformas legales que desaparecen el fondo minero para municipios. Con 20 votos a favor de Morena y su aliados y 10 en contra de la oposición, se avaló el dictamen que forma parte del paquete económico del 2020.

El diputado de Morena, Ignacio Campos, aseguró que dicho fondo promovía la opacidad en la información sobre la ejecución del presupuesto que le era asignado.

En tanto, el priista Fernando Galindo reprochó la eliminación del fondo, el cual, explicó, trataba de compensar a los municipios impactados por la actividad minera.

“Lo que se pretende ahora es que estos recursos se van a destinar a proyectos o al financiamiento del presupuesto general en materia educativa, sin decir para qué se va a llevar a cabo”, indicó.

El legislador pidió que al menos se debería precisar que el dinero del apoyo será para proyectos infraestructura del sector educativo.

Por su parte, el diputado de MC, Higinio del Toro, aseguró que con la eliminación del fondo, el Gobierno federal sigue castigando a los municipios.

“Pongo el ejemplo de cuatro municipios de mi distrito (en Jalisco) que gran parte la obra que se hacia era a través de ese fondo minero. Pihuamo tiene inclusive uno de los teleféricos más grandes del país para la extracción de minería, el municipio de Tecalitlán, Tuxpan y de manera parcial también Jilotlán de los Dolores”, aseguró.

Ternium entrega becas y fortalece educación en zona minera

Un total de 145 jóvenes procedentes de universidades en Ciudad de México, Nuevo León, Coahuila, Veracruz, Puebla, Colima y Michoacán, hn resultado beneficiados con la beca del Roberto Rocca Education Program y Roberto Rocca Education Program – UdeC, que otorga Ternium en conjunto con la universidad colimense.

La beca consiste en un apoyo económico los dos últimos años de su carrera para cubrir parte de sus gastos, durante este tiempo, el Roberto Rocca Education Program potencía sus talentos y les muestra la oportunidad que tienen de estar en un ambiente laboral exitoso en el futuro.

Rogelio Omaña, Jefe de Recursos Humanos, Desarrollo Social y Relaciones con la Comunidad Ternium Minas, señaló que para Ternium la educación es crucial para el desarrollo individual y de la sociedad, ya que así se contribuye en la construcción de un futuro fructífero y productivo.

“Lanzamos una iniciativa para Prácticas Profesionales de Verano en Monterrey, en la cual los estudiantes viven la experiencia industrial durante 8 semanas. El verano pasado cuatro alumnos de la Universidad de Colima estuvieron participando en proyectos de mejora continua, así como en área de investigación y desarrollo de nuevos y mejores productos. Esta iniciativa forma parte del programa de Relación con la Comunidad de Ternium”, agregó Omaña.

Por su parte, José Eduardo Hernández, Rector de la Universidad de Colima, dijo, “Para nosotros, fortalecer los vínculos que nos unen con el sector productivo es una tarea estratégica, porque permite a los jóvenes formarse en escenarios reales, y egresar mejor preparados. La entrega de este tipo de becas, es una muestra de confianza por parte de las entidades privadas como Ternium, que nos permiten estimular a los jóvenes de excelencia, y apoyar a quienes se encuentran en condiciones de desventaja para continuar su trayecto académico”.

Desde su inició en México en 2006, el Roberto Rocca Education Program ha entregado más de 3 mil becas a jóvenes de universidades participantes.

Este año se ha beneficiado con esta beca a un total de 145 jóvenes que provienen de universidades en Ciudad de México, Nuevo León, Coahuila, Veracruz, Puebla, Colima y Michoacán.

Fundación Grupo México se suma a Respira Querétaro y dona más de 175 mil plantas y árboles.

Fundación Grupo México

El Presidente Municipal de Querétaro, Luis Nava, agradeció el compromiso de la Fundación Grupo México y su interés en favor del medio ambiente, al sumarse al programa Respira Querétaro con la donación de 175 mil 345 árboles y plantas ornamentales, los cuales permitirán alcanzar la meta de sembrar 250 mil árboles en esta administración.

Minería, crisis ambiental y sustentabilidad


México es un país minero por excelencia y productor importante de metales preciosos a escala global. Sin duda la minería es un sector económico estratégico, cuya viabilidad ambiental y social, así como su competitividad deben ser prioridad nacional y objeto privilegiado de políticas públicas eficaces para su desarrollo sostenible. Nuestro país ocupa el lugar número 13 en el mundo por valor de la producción minera. Es el primer productor de plata a nivel mundial, y se ubica entre los 10 principales productores de otros minerales como bismuto, fluorita, cadmio, molibdeno, plomo, zinc, oro y cobre. De la producción minera, 60% corresponde a empresas nacionales, mientras que 40% a empresas extranjeras. Cabe destacar que en los últimos años la Inversión Extranjera Directa en actividades mineras ha crecido en forma significativa. Actualmente, la minería es el tercer sector en atracción de Inversión Extranjera Directa en México, con 10% del total aproximadamente, sólo precedida por la manufactura y los servicios financieros. Cerca de 70% proviene de Canadá. El sector minero-metalúrgico contribuye con 4% del PIB nacional.

Golden Minerals Enters Into Option Agreement to Sell Its Santa Maria Projec

Golden Minerals Company – 2019

GOLDEN, Colo., Oct. 17, 2019 (GLOBE NEWSWIRE) — Golden Minerals Company (NYSE American and TSX: AUMN) (“Golden Minerals”, “Golden” or “the Company”) announced today that it has entered into an option agreement (the “Transaction”) to sell its right to acquire a 100% interest in the Santa Maria silver and gold project located in southern Chihuahua State, Mexico to Magellan Gold Corporation (OTCQB: MAGE) (“Magellan”).

McEwen Mining Reports Q3 2019 Production Results


TORONTO, Oct. 17, 2019 (GLOBE NEWSWIRE) — McEwen Mining Inc. (NYSE: MUX) (TSX: MUX) reports consolidated production for Q32019 of 35,043 gold ounces and 947,146 silver ounces, or 45,930 gold equivalent ounces(1)(“GEOs”) using the average gold:silver price ratio for Q3 of 87:1. For the nine months ended Sept. 30, 2019 we have produced 128,125 GEOs, or 74% of our revised guidance midpoint of 172,500 GEOs. Our Gold Bar Mine continued to improve during the third quarter, achieving several key performance benchmarks for ore production, crushing throughput, and gold production. Gold Bar produced almost 5,000 GEOs in September, which is in line with our plan and approaching the designed capacity of the process plant. The San José and El Gallo mines performed well, meeting their production targets. At our Black Fox Mine, underground mining operations continued to be challenging, however high-grade exploration results at both the Black Fox and Stock properties are providing reason for excitement for the future. The latest exploration drilling from Stock East returned impressive intercepts, such as: 83.5 g/t gold over 5.6 m, including 417 g/t over 1.1 m; and 34.7 g/t gold over 5.9 m, including 74.1 g/t over 2.7 m (news release dated September 30, 2019).



COLORADO SPRINGS – October 17, 2019 – Gold Resource Corporation (NYSE American: GORO) (the “Company”) reports record preliminary gold production results for the third quarter ended September 30, 2019 of 11,165 ounces, reflecting the growing gold production impact from its Isabella Pearl mine, located in Mineral County, Nevada. In addition, the Company reports preliminary third quarter production of 477,297 ounces of silver and significant copper, lead and
zinc. With the Isabella Pearl project now in commercial production, Gold Resource Corporation has increased its 2019 global annual gold production outlook by 42% to 38,400 gold ounces, plus or minus 10 percent. Gold Resource Corporation is a gold and silver producer, developer and explorer with operations in Oaxaca, Mexico and Nevada, USA. The Company has returned $112 million to its shareholders in monthly dividends since commercial production commenced July 1, 2010 and offers its shareholders the option to convert their cash dividends into physical gold and
silver and take delivery.


Oroco Resource Corp_17102019

VANCOUVER, British Columbia – (October 17th, 2019) Oroco Resource Corp. (TSX-V: OCO) (“Oroco” or “the Company”) is pleased to announce the commencement of technical fieldwork, initially environmental baseline studies and permitting, at its Santo Tomas Project in Northwestern Mexico, followed by start-up of 3D Induced Polarization geophysical surveys and the first phase of confirmation diamond drilling.