The Mining and Exploration News in Mexico: Highlights on the First Week of July, 2021.

Flow Banded Rhyolite Dome

By Miguel A Heredia

During the 26th week of the year (June 28th to July 04th, 2021), at least 25 press releases were announced by companies working in Mexico and 5 news published by the media, with nine disclosing deals and corporate issues, seven announcing financial rounds, three reporting on resources and developments, three informing on exploration results, three communicating production and financial results, three commenting on Mexican issues, and two discussing social issues.  ON MEXICO ISSUES, The Ministry of the Environment and Natural Resources (SEMARNAT) authorized the expansion of the El Boleo mine in Baja California. Guanajuato Silver announced that it will restart activities at its El Cubo mine in October 2021. Mexico was the world’s leading silver producer in 2020. ON EXPLORATION, In Sonora, Silver Spruce announced it has contracted regional ASTER and LANDSAT spectral analysis on their Mezquite, Jackie and Diamante mining properties. In Chihuahua, Reyna Silver announced that it has started a 10,000m drilling program at its Batopilas project, and reported that a second drill rig has been added to speed up the completion of the current drilling  program conducted at its Guigui project.  ON MINING, Consolidated Zinc provided an operation update of its Plomosas mine in Chihuahua. Magna Gold announced it has achieved full-scale commercial production at its San Francisco mine in Sonora. Mexus Gold announced that it has sold gold doré as a result of recent production at its Santa Elena mine in Sonora.  ON FINANCING, Altaley restructured a USD $$26,027,240 debt with Trafigura and Nyrstar (Campo Morado mine, Guerrero). Comet issued 5M of fully paid ordinary shares (Santa Teresa property, Baja California Norte).  Defiance Silver granted stock options to certain directors and officers (San Acacio property, Zacatecas). Orla subscribed a non-brokered prospectus financing for gross proceeds of USD $35M (Camino Rojo project, Zacatecas). Silver Wolf received approval from OTC Markets Group Inc. to commence trading on the OTCQB Venture Market under the ticker symbol “GYRRF” (Ana Maria and El Laberinto properties in Durango). Silver Bull closed a private placement for gross proceeds of CAD $500K (Sierra Mojada project, Coahuila). Vista Gold received a final payment for $1M from Prime Mining to complete the agreement on the Guadalupe de Los Reyes property in Sinaloa.  ON RESOURCES AND DEVELOPMENT, Chesapeake drilled five core drill holes at its Metates project in Durango to provide core for a comprehensive metallurgical testwork program and to confirm the higher-grade nature of the Metates intrusive hosted mineralization. Prime Mining reported new results from its ongoing drill program conducted at its Los Reyes project in Sinaloa. Silver Tiger released results from its ongoing drilling program conducted at its El Tigre project in Sonora. ON DEALS AND CORPORATE ISSUES, Capstone published its 2020 sustainability report (Cozamine mine, Zacatecas). Discovery Silver presented results of its annual general meeting of shareholders (Cordero project, Chihuahua). Fortuna and Roxgold completed its previously announced business combination (San Jose mine, Oaxaca). GoGold presented its first sustainability report (Los Ricos project, Jalisco). Gold79 announced results from its annual general meeting of shareholders (Taviche project, Oaxaca). GR Silver appointed its Chairman of the Board of Directors (Plomosas project, Sinaloa).  Maverix acquired royalty portfolio from Pan American Silver, including Hernandez property in Sonora.  Sonoro presented results from its annual general meeting of shareholders (Cerro Caliche project, Sonora).  ON SOCIAL RESPONSIBILITY, The company Minera Media Luna (MML), a subsidiary of Torex Gold Resources, convened the second edition of the “Enchulemos Juntos Nuestra Comunidad” (let’s improve our community together) program in the town of Nuevo Balsas, Guerrero. The Secretary of Tourism, Eduardo Yarto delivered two S stamps to Fresnillo plc, after it concluded its processes of renewal of procedures within its facilities to implement good sustainable practices.

ON MEXICO ISSUES

  • The Ministry of the Environment and Natural Resources (SEMARNAT) approved on a conditional basis the expansion of the Environmental Impact Manifestation (MIA) requested by Minera y Metalúrgica del Boleo for the exploitation of copper, cobalt and zinc in 446 hectares for 16 years in the municipality of Mulegé, in Baja California. 2,481 participants representing 89% voted In favor of the expansion.
  • Guanajuato Silver Company Ltd., announced that it will restart activities at its El Cubo mine, Guanajuato in October 2021, which is expected to employ more than 200 miners in the capital, with priority in hiring those who were fired in the closure two years ago.
  • Mexico was the world’s leading silver producer in 2020 maintained the leadership in silver production on a global scale in 2020, with 5,541M tonnes. The Mexican mining company Fresnillo plc owned by Grupo Bal and linked to the Baillères family, is the largest company primary silver producer in the world.

ON EXPLORATION

  • Silver Spruce Resources Inc., announced it has contracted Strategic Consultants IGIS for a regional ASTER and LANDSAT spectral analysis on their Mezquite, Jackie and Diamante mining properties in Sonora. This study will help to understand the structural and lithological controls in a regional context and provide additional detail on the mineral by mineral distribution over each of the properties. It also will help to outline alteration pattern for enhanced target definition in each of the mining properties.
  • Reyna Silver Corp., announced that it has started a 10,000m drilling program at its Batopilas project in Chihuahua. The program is focused on testing targets identified in the spring of 2021 exploration campaign, which discovered multiple extensions to the 30 known veins in the district, of which two new veins returned high-grade values up to 42,302 g/t Ag and 210.4 g/t Au. The company also announced that a second drill rig has been added to its Guigui project in the Santa Eulalia mining district in Chihuahua to extend and speed up the completion of the ongoing drilling program. The company has completed 8,000m of the 12,000m planned and this second rig will allow to speed up the completion of the entire Phase 1 drilling by the end of July, 2021. Results of the Phase 1 drilling campaign will be released soon after.

ON MINING

  • Consolidated Zinc Limited provided an operation update of its Plomosas mine in Chihuahua. The company announced that it processed 3,958 tonnes of ore in May, 2021 for 719 tonnes of zinc concentrates and 184 tonnes of lead concentrates at its Plomosas and Aldama plants in Chihuahua. The company intends to continue processing through both plants until ore stockpiles are depleted and the Plomosas plant sustains the targeted 4,500tpm process rate.
  • Magna Gold Corp., announced it has achieved full-scale commercial production at its San Francisco mine in Sonora. Magna is on track to achieve its earlier stated 2021 guidance of 55K-65K Oz Au production, since it has completed the necessary pre-stripping and substantially lowered the mine strip ratio from ~8:1 to ~3:1. At San Francisco, the company anticipates a production run rate of ~6K Oz Au/month in Q3 and looks to exit the year at a run rate of ~7.5K Oz Au/month.
  • Mexus Gold US announced that it has sold gold doré as a result of recent production at its Santa Elena mine in Sonora. The sales netted the company $24K. “The company is in the process of shipping activated carbon to the U.S. for processing. It is believed that this material contains up to 75 OZ Au.  Mexus is also adding liner to the existing heap leach pad which will allow for increased production. Material currently being mined continues to test in the 5.66g/t Au range”.

ON FINANCING

  • Altaley Mining Corporation restructured a USD $26,027,240 debt with Trafigura Mexico S.A. de C.V., and Nyrstar Canada (Holdings) Ltd.  Terms of the total debt restructured was USD $14,720,840 on the Tahuehueto project in Durango for a term of 32 months, an London interbank offered interest rate (LIBOR) of 6% (1 year), and a grace period of 8 months; USD $4,024,678 on the Campo Morado mine in Guerrero for a term of 26 months, a LIBOR of 5% (3 months), and a grace period of 8 months; and USD $7,281,722 on the Campo Morado mine in Guerrero for a term of 26 months and a LIBOR of 10%.
  • Comet Resources Ltd., issued 5M of fully paid ordinary shares upon the exercise of unlisted options exercisable at $0.02 each on or before 30 June 2021.  (Santa Teresa property, Baja California Norte).
  • Defiance Silver Corp., granted stock options to certain directors and officers to purchase an aggregate of 1.425M of common shares at an exercise price of $0.90. The options are exercisable for a ten-year term expiring June 30, 2031 (San Acacio property, Zacatecas).
  • Orla Mining Ltd., subscribed a non-brokered prospectus financing for gross proceeds of USD $35M, consisting of 9,085,263 common shares priced at CAD $4.75 per common share. Part of the net proceeds will be used for development activities at its Camino Rojo Oxide Gold project in Zacatecas. The offering is expected to close on or about July 14, 2021.
  • Silver Wolf Exploration Ltd., received approval from OTC Markets Group Inc. to commence trading on the OTCQB Venture Market under the ticker symbol “GYRRF” (Ana Maria and El Laberinto properties in Durango).
  • Silver Bull Resources Inc., closed a private placement for gross proceeds of CAD $500K. Net proceeds of the private placement will be used by Silver Bull for general working capital purposes   (Sierra Mojada project, Coahuila).
  • Vista Gold Corp., received a final payment for $1M from Prime Mining Corp. to complete the agreement on the Guadalupe de Los Reyes property in Sinaloa. With this $1.0M payment, Vista has no remaining right to be granted the royalties and back-in rights.

ON RESOURCES AND DEVELOPMENT

  • Chesapeake Gold Corp., drilled five core drill holes at its Metates project in Durango to provide core for a comprehensive metallurgical testwork program and to confirm the higher-grade nature of the Metates intrusive hosted mineralization. Significant drill intercepts were encountered in hole CKG21-086 with 1.15 g/t Au and 49 g/t Ag (1.80 g/t AuEq or 135 g/t AgEq) over a true width (TW) of 432m, including 1.21 g(t Au and 417 g/t Ag (6.77 g/t AuEq or 508 g/t AgEq) over a TW of 9m, including 2.49 g/t Au and 22 g/t Ag (2.78 g/t AuEq or 20+9 g/t AgEq) over a TW of 69m, and including 2.13 g/t Au and 9 g/t Ag (2.25 g/t AuEq or 170 g/t AgEq) over a TW of 57m; hole CKG21-085 with 1.13 g/t Au and 29 g/t Ag (1.53 g/t AuEq or 114 g/t AgEq) over a TW of 282m, including 1.34 g/t Au and 32 g/t Ag (1.76 g/t AuEq or 132 g/t AgEq) over a TW of 150m; and hole CKG21-084 with 1.06 g/t Au and 17 g/t Ag (1.29 g/t AuEq or 97 g/t AgEq) over a TW of 135m, plus 0.86 g/t Au and 11 g/t Ag (1.01 g/t AuEq or 75 g/t AgEq) over a TW of 90m.
  • Prime Mining Corp., reported new results from its ongoing drill program conducted at its Los Reyes project in Sinaloa. The most significant drill intercepts were encountered in hole 21Mina-02 with 4.44 g/t Au and 1,060 g/t Ag over an estimated true width (ETW) of 4.8m, including 6.62 g/t Au and 1,398 g/t Ag over an ETW of 2m, including 6.3 g/t Au and 1,881 g/t Ag over an ETW of 1.2m; hole 21Mina-05 with 3,243 g/t Ag over an ETW of 0.74m, plus 1.45 g/t Au and 29 g/t Ag over an ETW of 1.85m; and hole 21Mina-06 with 1.72 g/t Au and 30 g/t Ag over an ETW of 3.20m.  These results are from six holes completed at Mina Area during phase I drilling. To date, 15,000m Phase I is complete and the 30,000m Phase 2 program has been started.
  • Silver Tiger Metals Inc., released results from its ongoing drilling program conducted on the Sooy Vein at its El Tigre project in Sonora. Highlights include hole ET21-233 with 0.13 g/t Au, 491 g/t Ag, 0.08% Pb, and 0.01% Zn (510 g/t AgEq) over 0.5m, plus  0.25 g/t Au, 2,041 g/t Ag, 0.65% Cu, 1.2% Pb, and 3.6% Zn (2,271 g/t AgEq), including 4,048 g/t Ag, 0.45 g/t Au, 1.31% Cu, 0.6% Pb, and 7.3% Zn (4,461 g/t AgEq) over 0.5m; hole ET21-230 with 0.15 g/t Au, 704 g/t Ag, 0.14% Cu, 0.05% Zn (731 g/t AgEq) over 0.5m, plus 0.12 g/t Au, 193 g/t Ag, 0.09% Cu, 0.03% Pb, and 0.15 % Zn (217 g/t AgEq) over 3m, including 0.2 g/t Au, 1,080 g/t Ag, 0.55% Cu, 0.1% Pb, and 0.75% Zn (1,176 g/t AgEq) over 0.5m, plus 0.28 g/t Au, 199 g/t Ag, 0.06% Cu, 0.2% Pb, and 0.3% Zn (241 g/t AgEq) over 0.5, plus 0.41 g/t Au, 161 g/t Ag, 0.04% Cu, 0.2% Pn, and 0.4% Zn (214 g/t AgEq) over 0.5m; and hole ET21-229 with 0.13 g/t Au, 63 g/t Ag, 0.21% Cu, 0.8% Pb, and 1.6% Zn (165 g/t AgEq) over 13.5m, including 0.11 g/t Au, 83 g/t Ag, 0.27% Cu, 1% Pb, and 2% Zn (209 g/t AgEq) over 9.9m, including 0.21 g/t Au, 114 g/t Ag, 0.38% Cu, 3.7% Pb, and 8.7% Zn (542 g/t AgEq) over 1.8m.

ON DEALS AND CORPORATE ISSUES

  • Capstone Mining Corp., published its 2020 sustainability report.  (Cozamine mine, Zacatecas)
  • Discovery Silver Corp. presented results of voting at its annual general meeting of shareholders (Cordero project, Chihuahua).
  • Fortuna Silver Mines Inc., and Roxgold Inc., completed its previously announced business combination to create a global premier growth-oriented intermediate gold and silver producer (San Jose mine, Oaxaca).
  • GoGold Resources Inc., presented its first sustainability report that sets out the company’s priorities with respect to its environmental, social and governance (“ESG”) practices (Los Ricos project, Jalisco).
  • Gold79 Mines Ltd., announced results from its annual general meeting of shareholders (Taviche project, Oaxaca).
  • GR Silver Mining Ltd., appointed its Chairman of the Board of Directors (Plomosas project, Sinaloa).
  • Maverix Metals Inc., acquired royalty portfolio from Pan American Silver, including Hernandez property in Sonora. The Hernandez property, currently on exploration, is owned by First Majestic and includes a 2.5% NSR.
  • Sonoro Gold Corp., presented results from its annual general meeting of shareholders (Cerro Caliche project, Sonora). 

ON SOCIAL RESPONSIBILITY

  • Minera Media Luna (MML), a subsidiary of Torex Gold Resources, convened the second edition of the “Enchulemos Juntos Nuestra Comunidad” (let’s improve our community together) program in the town of Nuevo Balsas, Guerrero. During the cleaning day, about 300 people participated, including contractors, residents and collaborators of the mining company, remodeling four public spaces: the vehicular roundabout on Gerardo Reyes Norte Street, the camellones on that same street, the sports area in the southern part and the perimeter fencing of the downtown court. The investment of the work done amounted to MXP $1.3M. Members of the Public and Community Relations areas of MML, the collaborators of 11 contractor companies, members of the Participatory Community Development Committee (CODECOP) and residents of Nuevo Balsas cleaned and reforested green areas, painted fences and garrisons, and assisted in various activities that together aim to maintain the program to improve public spaces that the mining company began last year. The effort achieved the painting of 2,300 meters of trimmings, the planting of 90 trees, the collection of five tons of garbage, and the painting of 300 square meters of fences.
  • The Secretary of Tourism in Zacatecas, Eduardo Yarto delivered two S stamps to Fresnillo plc, after it concluded its processes of renewal of procedures within its facilities to implement good sustainable practices. The Secretary underlined the disposition of Fresnillo plc, with the renewal of the certification for the golf course and the ecological park Fresnillo PLC, to offer quality services to users.

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, a flow banded rhyolite dome intruding a clay-altered rhyolitic ignimbrite sequence in Chihuahua, Mexico.  Photo by Miguel A Heredia.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s