By Miguel A Heredia
During the second week of the year (January 11th to January 17th, 2021), at least 31 press releases were announced by companies working in Mexico and 6 news published by the media, with eleven informing on exploration results, eight communicating production and financial results, five reporting on resources and development of their mine operations, five disclosing deals and corporate issues, three commenting on Mexican issues, three discussing social issues, and two announcing financial rounds. ON MEXICO ISSUES, A deputy of the Morena party presented an initiative to increase taxes on mining companies that carry out exploration, exploitation and sales of gold, silver and copper. The Santa Barbara mining company plans to employ 300 people in the first five months of 2021. The Second Chamber of the Supreme Court of Justice of the Nation (SCJN) declared that the Mining Law is not unconstitutional because it does not provide for a citizen consultation with indigenous peoples, as considered by the Maseual people, of the northern sierra of Puebla. ON EXPLORATION, In Sonora, Colibri recommenced the trenching program at its Evelyn project, Riverside presented drill results from the first four holes collared at the Cuarentas project and provided a brief outlook on its goals and objectives for 2021, and Tarachi provided a review of 2020 and outlook for 2021. In Chihuahua, Kootenay reported on 2020 milestones achieved at its Columba and La Cigarra properties and discussed plans for 2021. In Sinaloa, Vizsla released drill results from two holes collared at its Panuco project, Mithril announced resumption of exploration activities at its Cometa project in the Copalquin mining district, and Kootenay reported on 2020 milestones achieved at its Copalito project. In Durango, Canasil outlined potential for significant high grade mineralization at its Nora property after reviewing results from six drill holes collared at the property. In Zacatecas, Advance Gold plans to drill below a high grade intersection at its Tabasqueña property, Alien and its JV partner Capstone are to commence a 2,500m drilling program at its Donovan project, and Canasil resumed drilling at its Esperanza project. ON MINING, Aura announced operational and financial guidance for the year 2021 for its Aranzazu mine in Zacatecas. Equinox reported 2020 production results from its Los Filos mine in Guerrero. Excellon announced Q4, and full year 2020 production results from its Platosa mine in Durango. GoGold reported Q4, 2020 production results from its Parral tailings project in Chihuahua. Golden Minerals announced it begun gold production from its Rodeo project in Durango. Great Panther reported Q4, 2020 production results from its Topia mine in Durango and Guanajuato Mine Complex in Guanajuato. Telson reported Q4, 2020 production results from its Campo Morado mine in Guerrero. Torex provided a 2021 operational guidance for its El Limon-Guajes mine complex in Guerrero. ON FINANCING, Mammoth announced non brokered private placement for up to $600K (Tenoriba project, Chihuahua). Prime Mining made a payment to Vista Gold as per the terms of the acquisition of the Los Reyes property in Sinaloa. ON RESOURCES AND DEVELOPMENT, Avino reported an updated mineral resource estimate for its Avino mine in Durango. Capitan Mining released results from five holes collared at its Peñoles property in Durango. Orla increased the gold mineral reserves by 54% with updated FS at its Camino Rojo project in Zacatecas. Torex announced that the release of the Morelos Technical Report including the Media Luna FS has been rescheduled from mid-2021 to Q1, 2022. SilverCrest announced in-fill drill results from the Babicanora area for the FS resource estimation for its Las Chispas project in Sonora. ON DEALS AND CORPORATE ISSUES, Golden Minerals regained full compliance with the New York Stock Exchange (NYSE) (Rodeo property, Durango). Orogen appointed its new VP of Exploration (Ermitaño property, Sonora). Reyna Silver granted stock options to consultants of the company (Guigui project, Chihuahua). VanGold engaged Behre Dolbear for a PEA study on El Cubo mine purchase. Magna Gold clarified certain technical disclosure in respect of the company´s Mercedes project in Sonora. Kootenay reported on 2020 milestones achieved at its Cervantes project in Sonora. ON SOCIAL RESPONSIBILITY, Minera Cuzcatlán (Fortuna Silver) delivered 2,400 pantries to families belonging to the Municipality of San Jose del Progreso, Oaxaca. Fresnillo plc has been a fundamental ally of the communities in which it operates. Peñoles sponsored 754 students from Torreón, Coahuila in First Robotic 2021 to promote the interest of young people in science and technology.
ON MEXICO ISSUES
- A deputy of the Morena party presented an initiative in the chamber of deputies to increase taxes on mining companies that carry out exploration, exploitation and sales of gold, silver and copper. In his initiative, the deputy Iran Santiago Manuel proposes to replace the collection of fees that are made to the mining companies based on the allocations they have for each hectare or fraction concessioned or assigned per semester; and now seeks that “the holders of mining concessions and allotments will pay annually, for mining rights, 5% on the sale of the main mineral and secondary minerals, and in the case of gold, copper and silver, 8%”.
- The Santa Barbara mining company plans to employ 300 people in the first five months of 2021. To date, the company has a workforce of 1,300 workers, of which 940 are unionized and the rest are trusted personnel and a third party.
- The Second Chamber of the Supreme Court of Justice of the Nation (SCJN) declared that the Mining Law is not unconstitutional because it does not provide for a citizen consultation with indigenous peoples, as considered by the Maseual people, of the northern sierra of Puebla. Thus, the SCJN denied the protection requested by the residents, who want to be consulted before any mining activity takes place in their territories.
- Colibri Resource Corporation recommenced the trenching program at its Evelyn project. To date, a total of 230 samples have been collected and analyzed to explore for vein continuity under alluvial cover as well as to determine and confirm structural and vein orientations. The company also announced that in December it applied for a new permit to complete a second phase trenching program and is expected to receive it within the next six weeks.
- Riverside Resources Inc., presented drill results from the first four holes collared at the Cuarentas project. The best drill intercept was encountered in hole LC20-001 with 1.04 g/t Au, 58 g/t Ag, 0.2% Pb, and 0.3% Zn over 3.44m, including 1.8 g/t Au, 82 g/t Ag, 0.4% Pb, and 0.6% Zn over 1.4m. “Drilling results suggest some displacement has occurred between the high grade surface sampling of old mining areas and the at depth drill intersections”. The company also provided a brief outlook on its goals and objectives for 2021. At Cecilia project in Sonora, Riverside is currently underway for an initial drill program to commence to test a couple of the ten high priority drill targets defined previously. At the BHP program, the company has developed a strong portfolio of prospective projects and will be focused on discovering large copper deposits in Sonora. At the Cuarentas project, Riverside will complete interpretation of the recent completed drill program and will refine regional property-wide targets.
- Tarachi Gold Corp., provided a recap of 2020 and outlook for 2021. Tarachi closed two private placement totalling CAD $11M to continue exploring on the Tarachi claims, advancing Magistral and pursuing additional projects in Mexico. At Tarachi project in Sonora, the company signed two option agreements to acquire 3,708 ha and commenced a 5,000m drill program completing 1,711.20m. A significant drill intercept was encountered at Tarachi Sur with 5.05 g/t Au over 20.75m, and at La Dura with 4.54 g/t Au over 21m. Assays are still pending for ten drill holes completed in last December. The company also signed a LOI with Manto Resources for the acquisition of the Magistral mill and tailings project in Durango. Plans for the new year are receive pending drill assays from the La Dura and Tarachi targets, complete the 5,000m drilling program, , closing the purchase of the Magistral property, and initiate sampling of the tailings for metallurgical testing and initiate a PEA.
- Kootenay Silver Inc., reported on 2020 milestones achieved at its Columba and La Cigarra properties and plans for 2021. At Columba, the company initiated and completed the second drill program totaling 9,114m in 43 holes. Drill highlights include hole CDH-20-045 with 974 g/t Ag over 0.5m; CDH-20-046 with 1,585 g/t Ag over 0.6m and 911 g/t Ag over 1.4m; hole CDH-20-049 with 762 g/t Ag over 2.8m, including 2,010 g/t Ag over 1m; hole CDH-20-51 with 865 g/t Ag over 2m; hole CDH-20-60 with 361 g/t Ag over 11m, including 608 g/t Ag over 5m, including 1,160 g/t Ag over 1m; hole CDH-20-066 with 773 g/t Ag over 1.5m. Significant drilling is planned for 2021 at Columba project for the company. At La Cigarra, the company initiated the re-logging of drill core to create a new geological model which is expected to be completed in 2021. The objective is to optimize the resource and advance it to a PEA study.
- Vizsla Resources Corp., released drill results from two holes collared at the Tajitos Vein zone within its Panuco project. The best drill intercept was encountered in hole CS-20-06 with 536 g/t Ag and 4.35 g/t Au (910 g/t AgEq) over 13.5m, including 947 g/t Ag and 7.68 g/t Au (1,607 g/t AgEq) over 7.55m, including 1,870 g/t Ag an 15 g/t Au (3,157 g/t AgEq) over 1.5m.
- Mithril Resources Ltd., announced resumption of exploration activities at its Cometa project in the Copalquin mining district. The company has commenced a soil and mapping program at El Refugio West to cover La Soledad West, El Indio and Zaragoza prospects. Additionally, three deeper holes are planned at El Refugio to test extensions of higher Au-Ag grades and greater width to the breccia zone.
- Kootenay Silver Inc., reported on 2020 milestones achieved at its Copalito project in Sinaloa. The company completed the first drill program to ever be conducted on the property totalling 4,100m in 40 holes. Drill highlights include hole BDH-20-001 with 369 g/t AgEq; 250 g/t Ag and 0.247 g/t Au over 5.0m; 360 g/t Ag and 0.1 g/t Au over 1.0m within 272 g/t AgEq; BDH-20-002 with 179 g/t AgEq ; 1.69 g/t Au over 4.3m and 274.8 g/t AgEq; 3.02 g/t Au over 1.7m; BDH-20-004 with 1,323 g/t AgEq; 1,297 g/t Ag and 0.285 g/t Au over 3.2m; BDH-20-009 with 1,047 g/t AgEq.; 936 g/t Ag, 0.29 g/t Au and 3.31% combined Pb + Zn combined over 1.0m; BDH-20-015 with 394 g/t AgEq; 51 g/t Ag, 2.28 g/t Au, 6.18 % combined Pb + Zn over 1.2m; BDH-20-033 with 1,210 g/t AgEq; 59 g/t Ag, 7.05 g/t Au, 13.55 % combined Pb +Zn over 0.2m; and BDH-20-037 with 1,261 g/t AgEq over 1.0m consisting of 846 g/t Ag, 3.11 g/t Au and 6.15% combined Pb + Zn. Significant drilling is planned for 2021 at Copalito project for the company.
- Canasil Resources Inc., announced that exists potential for significant high grade mineralization at its Nora property after reviewing results from eight drill holes collared along 500m of the 3km traced strike of the Candy vein. The high grades Au and Ag obtained during the first drilling phase warrant a phase 2 follow up program. The most relevant drill results was obtained in hole-20-06 with thee significant drill intercepts: 11.86 g/t Au and 378 g/t Ag (1,238 g/t AgEq) over a true width (TW) of 1.49m, including 2,033 g/t AgEq over a TW of 1m, and 3,671 g/t AgEq over a TW of 0.50m (Candy vein); 4.78 g/t Au and 351 g/t Ag (698 g/t AgEq) over a TW of 2.40m, including 1,101 g/t AgEq over a TW of 1.15m, and 1,692 g/t AgEq over a TW of 0.45m (Candy hanging wall vein); and 26.1 g/t Au and 284 g/t Ag (2,176 g/t AgEq) over a TW of 0.26m (Candy footwall vein). Additionally, a review of 1,200 soil samples collected over a grid of 3km by 2km outlined multiple multi element anomalies pointing to a strong mineralizing system with multiple exploration targets with potential to host high-grade and disseminated silver-gold-copper-lead and zinc mineralization.
- Advance Gold Corp., commenced to drill below a previous announced high grade intersection which returned 9.46 g/t Au over 1.70m wide. Advance is drill testing a 3,500m long high chargeability IP anomaly within a 2km by 400m corridor which contains a swarm of epithermal veins at its Tabasqueña property in Zacatecas.
- Alien Metals Ltd., announced that its JV partner Capstone Mining Corp., is to commence a 2,500m drilling program at its Donovan project in Zacatecas. Drill location will be finalized following interpretation of the IP survey conducted in late-2020 by Capstone.
- Canasil Resources Inc., resumed drilling at its Esperanza project located in Zacatecas-Durango states. Hole ES-21-23 is in progress and was designed to test extensions of the Esperanza structure along strike and to depth.
- Aura Minerals Inc., provided operational and financial guidance for the year 2021 for its Aranzazu mine in Zacatecas. The company estimates to produce between 81K to 93K Oz AuEq at a cash cost of USD $615-725 per Oz AuEq. Aura is also planning to drill more than 48,900m of drilling to support the next expansion in line with management’s goal of doubling production capacity in the future.
- Equinox Gold Corp., reported that during 2020 it produced 58,500 Oz Au from its Los Filos mine in Guerrero, after completing the merger with Leagold in March 10, 2020.
- Excellon Resources Inc., announced Q4, and full year 2020 production results from its Platosa mine in Durango. In Q4, 2020 Excellon mined 21,455 tonnes and processed 22,626 tonnes of 536 g/t Ag, 5.4% Pb, and 6.12% Zn with metallurgical recoveries of 91.2%, 82.9%, and 80.1% respectively, to produce 355.6K Oz Ag, 2.22M Lb Pb, and 2.45M Lb Zn (556.3M Oz AgEq). During the full year, the company mined 66,501 tonnes and processed 65,567 tonnes of 519 g/t Ag, 5.37% Pb, and 6.57% Zn with metallurgical recoveries of 91.4%, 83.7%, and 78.9% respectively, to produce 997.7K Oz Ag, 6.47M Lb Pb, and 7.49M Lb Zn.
- GoGold Resources Inc., reported Q4, 2020 production results from its Parral Tailings project in Chihuahua. GoGold produced 298.6K Oz Ag, 3,632 Oz Au, and 275.6K Lb Cu (614.15K Oz AgEq). It allows the company increase its cash balance from USD $53M at September 30, 2020 to USD $56M at December 31, 2020.
- Golden Minerals Company announced it begun gold production from its Rodeo project in Durango. The company shipped the first loads to its Velardeña Mill and expects a first pour of gold-silver doré bars within two weeks.
- Great Panther Mining Limited reported Q4 and full year 2020 production results from its Topia mine in Durango and Guanajuato Mine Complex in Guanajuato. At Topia, Durango, the company processed 9,959 tonnes of 337 g/t Ag, 0.81 g/t Au with metallurgical recoveries of 90% and 48.7% respectively to produce 97.3K Oz Ag, 127 Oz Au, 467.4K Lb Pb648.16K Lb Zn (179.6K Oz AgEq or 1,996 Oz AuEq). At Guanajuato Mine Complex, Great panther processed 39,539 tonnes of 117 g/t Ag and 1.46 g/t Au with metallurgical recoveries of 85.9% and 84.3% respectively to produce 128.2K Oz Ag and 1,559 Oz Au (268.5K Oz AgEq or 2,984 Oz AuEq).
- Telson Mining Corporation reported Q4, 2020 production results from its Campo Morado mine in Guerrero. The company milled 168,311 tonnes of 1.01 g/t Au, 108 g/t Ag, 0.32% Cu, 0.98% Pb, and 3.86% Zn to produce 9,974 tonnes of Zn concentrate and 1,916 tonnes of Pb concentrate for 9.95M Lb Zn and 961.2K Lb Pb contained. Telson reported total revenues of USD $8.77M.
- Torex Gold Resources Inc., provided a 2021 operational guidance for its El Limon-Guajes mine complex in Guerrero. Torex estimates to produce 430K-470K Oz Au in 2021, at cash and AISC of USD $680-720 and USD $920-970 per Oz Au respectively.
- Mammoth Resources Corp., announced a non brokered private placement for proceeds of up to $600K (Tenoriba project, Chihuahua).Proceeds will be used to fund the review of the Tenoriba project by a PhD geologist, fund the 3D modeling and combined historical IP-mag geophysical, surface and drill data, an infill IP/mag geophysical survey on the 60% of the mineralized area on the project not covered by the historical survey, and perform some confirmation mapping and sampling to select drill targets as part of its 50-hole, 7,500 meters drill program.
- Prime Mining Corp., made a payment of USD $1.1M to Vista Gold as per the terms of the acquisition of the Los Reyes property in Sinaloa. Prime agreed to pay Vista USD $2.1M in lieu of being granted certain royalties and back-in rights relating to the project. The remaining USD $1.0M payment is due during July 2021.
ON RESOURCES AND DEVELOPMENT
- Avino Silver & Gold Mines Ltd., announced an increase of 60% in measured and indicated mineral resources for its Avino mine in Durango. To date, the Avino deposit has measured and indicated resources of 20.25M tonnes of 69 g/t Ag, 0.67 g/t Au, 0.41% Cu (117 g/t AgEq) to contain 44.9M Oz Ag, 436K Oz Au, 182.98M Lb Cu (75.9M Oz AgEq), and inferred resources of 6.545M tonnes of 59 g/t Ag, 0.61 g/t Au, 0.27% Cu (103 g/t AgEq) to contain 12.5M Oz Ag, 129K Oz Au, and 39M Lb Cu (21.8M Oz AgEq).
- Capitan Mining Inc., released results from five holes collared at its Peñoles property in Durango. Significant drill intersects were encountered in hole 20-CARC-11 with 0.94 g/t Au over 57.9m, including 2.04 g/t Au over 18.3m, and hole 20-CARC-13 with 0.42 g/t Au over 100.6m, including 0.67 g/t Au over 21.3m. “New drilling has confirmed that Capitan Hill gold mineralization continues along strike to the east, over 250 m beyond the 2015 43-101 resource and remains open to expansion to the east, west and down-dip”.
- Orla Mining Ltd., increased the gold mineral reserves by 54% with updated Feasibility Study (FS) at its Camino Rojo project in Zacatecas. The new mineral reserve estimate includes proven and probable mineral reserves of 67.4M tonnes at grades of 0.73 g/t Au and 14.5 g/t Ag for a total of 1.59M Oz Au and 31.5M Oz Ag contained. Measured and Indicated resources are 353.4M tonnes at grades of 0.83 g/t Au and 9 g/t Ag for a total of 9.46M Oz Au and 100.4M Oz Ag contained. Inferred resources are 60.9M tones at grades of 0.87 g/t Au and 7.4 g/t Au for a total of 1.7M Oz Au and 14.5M Oz Ag contained. Mineral resources are inclusive of mineral reserves. Highlights of the FS are a throughput rate of 18,000 tonnes per day for an average annual gold production of 94K Oz , a mine life of 10.4 years, an initial Capex of USD $134M, a total cash cost of USD $490 per Oz Au, an AISC of USD $543 per Oz Au, a after tax NVP (5% discount rate) of USD $452M and an after tax IRR of USD $62%.
- Torex Gold Resources Inc., announced that the release of the Morelos Technical Report including the Media Luna FS has been rescheduled from mid-2021 to Q1, 2022.
- SilverCrest Metals Inc., announced in-fill drill results from the Babicanora area for the FS resource estimation for its Las Chispas project in Sonora. The best drill intercepts were encountered in hole BA19-304 with 38.06 g/t Au and 4,214 g/t Ag (7,068 g/t AgEq) over 2.4m on Babi Main; hole BA19-215 with 96.53 g/t Au and 2,899 g/t Ag (10,139 g/t AgEq) over 2m on Babi footwall; hole BA19-303 with 90.57 g/t Au and 75 g/t Ag (6,868 g/t AgEq) over 0.4m on Babi hanging wall; and hole BA20-156 with 72.22 g/t Au and 161 g/t Ag (5,577 g/t AgEq) over 1.8m on Babi Sur. Drill results have a expanded Babi Main 700m along strike, Babi footwall 100m along strike, and Babi hanging wall 100m along strike. A composite assays has been estimated by SilverCrest for each structure. Babi Main has a weighted average grade of 7.54 g/t Au and 713 g/t Ag (1,238 g/t AgEq) over a, average true width (TW) of 2.7m: Babi footwall has 9.04 g/t Au and 748 g/t Ag (1,431 g/t AgEq) over a TW of 1m; Babi hanging wall has 3.9 g/t Au and 207 g/t Ag (460 g/t AgEq) over a TW of 0.7m; and Babi Sur has 9.38 g/t Au and 436 g/t Ag (1,139 g/t AgEq) over a TW of 1.5m.
ON DEALS AND CORPORATE ISSUES
- Golden Minerals Company regained full compliance with the New York Stock Exchange (NYSE) by meeting the requirements of the USD $50M market capitalization exemption in section 1003(a) of the company guide from the stockholder´s equity requirement (Rodeo property, Durango).
- Orogen Royalties Inc., appointed its new VP of Exploration (Ermitaño property, Sonora).
- Reyna Silver Corp., granted stock options to consultants of the company for the purchase of an aggregate of 502.4K common shares. Each option is exercisable at $1.03 per share and expire five years from the date of grant or as per service agreement with consultant (Guigui project, Chihuahua).
- VanGold Mining Corp., engaged Behre Dolbear to provide a PEA study in relation to its purchase of the El Cubo mine and mill complex located 8km northeast of the company´s Pinguico property in Guanajuato. The PEA is expected to be completed by early February 2021.
- Magna Gold Corp., clarified certain technical disclosure in respect of the company´s Mercedes project in Sonora. Magna has updated the corporate presentation and can be consulted on its website.
- Kootenay Silver Inc., reported on 2020 milestone achieved at its Cervantes project in Sonora. The company completed a JV agreement with Aztec Minerals Corp. To date, Aztec has completed the earn-in to acquire 65% interest in Cervantes project with Kootenay retaining the remaining 35%.
ON SOCIAL RESPONSIBILITY
- Minera Cuzcatlán (Fortuna Silver Mines Inc.), delivered 2,400 pantries to families belonging to the Municipality of San Jose del Progreso, Oaxaca, as well as the Los Vásquez, Santa Cecilia, Los Patiños, El Jagüey, El Cuajilote, El Porvenir, Maguey Largo and La Garzona agencies.
- Fresnillo plc has been a fundamental ally of the communities in which it operates, deploying a team of professionals to carry out initiatives that seek the care of its collaborators, their families and the population in general. The company has donated specialized equipment, personal protective equipment, ventilators, and medicine to the IMSS hospitals in Caborca, Sonora, Hidalgo del Parral and Guadalupe y Calvo, Chihuahua, Fresnillo, Zacatecas and Durango and La Ciénega, Durango.
- Industrias Peñoles S.A.B. de C.V., sponsored 754 high school students belonging to 23 educational institutions from Coahuila Durango, Zacatecas, Sonora, Chihuahua, Guerrero, Oaxaca and the State of Mexico in First Robotic 2021 to promote the interest of young people in science and technology.
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 above, sodic alteration in an intrusive in a prospect in Coahuila, Mexico. Photo by Miguel A Heredia.