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

Calcite veinlets in an oxidized siltstone-sandstone sequence

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

By Miguel A Heredia

During the 35th week of the year (September 6th to September 12th, 2021), at least 23 press releases were announced by companies working in Mexico and 6 news published by the media, with fourteen reporting resources and developments of their properties, eight informing on exploration results, five commenting on Mexican issues, one  communicating production and financial results, and one discussing social issues.  ON MEXICO ISSUES, the National Autonomous University of Mexico (UNAM) and the Mexican Mining Chamber (CAMIMEX) signed a collaboration agreement to promote research, scientific-technical advice and the training of human resources related to the mining sector. Mining companies in Mexico increased their consumption of clean energy from 14 to 31% from 2019 to 2020. Silver production in Mexico was led by the companies Fresnillo plc, Newmont and Grupo México in 2020, reported CAMIMEX. The Mexican Geological Service (SGM) has detected 14 points to explore for lithium carbonate in Sonora. The head of CAMIMEX stated that Mexican mining companies face “major delays” with environmental and water permits. ON EXPLORATION, In Sonora, Benjamin Hill released assay results at its Benjamin Hill property, Colibri completed an IP survey and applied for a drill permit on its Evelyn project, and along with its partner Silver Spruce informed on exploration results at their Mezquite, Jackie and Diamante properties. In Chihuahua, Reyna Silver presented results from the first seven holes collared at its Batopilas property. In Nayarit, Sierra Madre announced results from its confirmation drilling program at its Tepic project. In Zacatecas, Defiance Silver released drill results from its ongoing drilling program at its San Acacio project.  ON MINING, Minera Alamos provided an update on the ongoing ramp up of mining operations at its Santana project in Sonora.  ON FINANCING, no relevant news.  ON RESOURCES AND DEVELOPMENT, Almaden provided an update on its current drilling program at the Ixtaca project in Puebla. Coeur provided an update of its ongoing infill and expansion drilling program at its Palmarejo property in Chihuahua.  Discovery Silver reported positive results from metallurgical test work at its Cordero property in Chihuahua. Endeavour completed a Feasibility Study (FS) on its Terronera property in Jalisco. Fabled announced additional results from its 1,200m drilling program conducted at its Santa Maria property in Chihuahua. GoGold released results from five holes drilled at its Los Ricos project in Jalisco.  Gold Resource confirmed down-dip extension of the Switchback Vein System at its Arista mine, and commenced process of ramping up activities at its Don David mine in Oaxaca. Golden Tag released results from its drilling program conducted at its San Diego property in Durango. GR Silver presented results from the exploration program conducted on the GAP area located between the San Juan and San Marcial areas in Sinaloa. Prime Mining released results from its phase 1 drilling program conducted at its Los Reyes property in Sinaloa.  SilverCrest announced infill and expansion drill results at its Las Chispas property in Sonora. ON DEALS AND CORPORATE ISSUES, no relevant news. ON SOCIAL RESPONSIBILITY, Fresnillo plc, through Minera Juanicipio promotes the economy of the communities of Carrillo and Nuevo Mexico in Fresnillo, Zacatecas.

ON MEXICO ISSUES

  • The National Autonomous University of Mexico (UNAM) and the Mexican Mining Chamber (CAMIMEX) signed a collaboration agreement to promote research, scientific-technical advice and the training of human resources related to the mining sector. The agreement will allow addressing specific problems in this strategic sector for the country, such as the management of polluting waste and the new technologies applicable in mining processes to reduce the environmental impact and the impact on local communities.
  • Mining companies in Mexico increased their consumption of clean energy from 14 to 31% from 2019 to 2020, according to the Mining Chamber of Mexico (CAMIMEX). The results correspond to the member companies of CAMIMEX, which account for about 90% of the value of the country´s mining-metallurgical production.
  • Silver production in Mexico was led by the companies Fresnillo plc, Newmont and Grupo México in 2020, reported the Mexican Mining Chamber (CAMIMEX). Silver mining production was 180.2 M Oz in 2020, 4% less than the corresponding year. Of that total, Fresnillo plc, the world’s largest producer company, recorded a production of 27.7%. This was followed by Newmont (15.4%) and Grupo México (8.8%). By federal entity, Zacatecas retains the first position, with a participation of 38.9%.The largest silver mines in the country are located in this state: “Peñasquito”, “Saucito” and “Fresnillo”.
  • The Mexican Geological Service (SGM) has detected 14 points to explore for lithium carbonate in Sonora. Lithium is used to create batteries, technological tools, mobile devices and electric cars that is revolutionizing the automotive industry.
  • The head of CAMIMEX, Fernando Alanis, stated that Mexican mining companies face “major delays” with environmental and water permits. “According to CAMIMEX, 18 specific mining project permits are pending before SEMARNAT, corresponding to projects that represent investment of nearly USD $2,800M. The metals sector seeks to boost operations in the one of the country’s biggest industries.

ON EXPLORATION

  • Benjamin Hill Mining Corp., released assay results from its Benjamin Hill property in Sonora with values as high as up to 20.0 g/t of Au at the eastern part of the area and values that ascend to 6.1, 4.4 and 3.6 g/t of Au to the south and silver values that exceed 200 g/t. These results confirm a N-S mineralized trend that runs at least by 3m long and 3 km wide. The company considers it is a new target area worthy to be drill tested.
  • Colibri Resource Corporation completed an IP survey and applied for a drill permit on its Evelyn project. At Evelyn property, the company completed an IP survey and reported that at 100m vertical depth, two broad areas of higher chargeability were identified underlying the northeast and central-east regions of the property; at 100m vertical depth, a sharp north-northwest showing more resistive domain to the northeast and a less resistive domain to the southwest was identified and has been interpreted as a moderately westerly dipping fault zone; and at 200m vertical depth, a strong chargeability was identified underlying the chargeability anomaly at 100m depth being interpreted as due to a stronger chargeability response below the zone of oxidation. Colibri also informed that it filed a drill permit with the Mexican Environmental Authority (SEMARNAT) to drill up to 56 holes at Evelyn property. This drilling program is based on data compilation and interpretation including the IP survey.
  • Colibri Resource Corporation, along with its partner Silver Spruce Resources Inc., informed on exploration results at their Mezquite, Jacky and Diamante properties. At El Mezquite property, the companies released drill results for the first 10 holes of its phase 1 drilling program and reported that 9 out of 10 returned assays or assay intercepts greater that 0.1 g/t Au with a highlight of 0.83 g/t Au over 3.05 metres in hole MEZ-21-005. These 10 holes are part of the 20 holes completed on July from eight pads for a total of 2,485m. Results of the remaining 10 holes are pending. The company also received a comprehensive interpretation of regional ASTER and LANDSAT 8 Hyperspectral and Image Analysis at their Jackie, El Diamante, and Mezquite properties. Alteration zonesassociated with NW trending lineaments (partially targeted by phase 1 drilling) were identified at Mezquite property. At Jackie, there are andesites displaying intense oxidation, silicification and argillization in areas free of vegetation. At Diamante property, there are many areas of alteration that require field verification as part of the first drill target definition.
  • Reyna Silver Corp., presented results from the first seven holes totaling 1,095m collared at its Batopilas property in Chihuahua. This is part of a 10,000m stage 1 drilling program. Significant mineralization was encountered in hole BA21-30 with 3.03 g/t Au and 703 g/t Ag over 3.2m, including 10,565 g/t Ag over 0.2m, and 8.74 g/t Au over 0.85m; and hole BA21-34 with 4.88 g/t Au and 11 g/t Ag  over 1.5m, including 28.7 g/t Au and 59 g/t Ag over 0.25m. “Reyna Silver’s exploration program in the district is focused on tracing the known and projected native- silver bearing veins into the less explored and exploited parts of the district using surface mapping, trenching and satellite imagery”.
  • Sierra Madre Gold & Silver Ltd., announced results from its recently completed confirmation drilling program at its Tepic project. This program comprised 21 RC holes totalling 2,136m. Drilling highlights include hole TRC012 with 2.23 g/t Au and 263 g/t Ag (419 g/t AgEq) over 1.2m and hole TRC013 with 1.47 g/t Au and 119 g/t Ag (222 g/t AgEq) over 22.9m. Sierra Madre is advancing the property to a NI 43-101resource estimation.
  • Defiance Silver Corp., released drill results from its ongoing drilling program out of the existing resource area at the San Acacio project. Drilling highlights include holes DDSA-21-48 with 0.11 g/t Au, 144 g/t Ag, 0.4% Pb, and 0.5% Zn (179 g/t AgEq) over 20.97m, including 0.23 g/t Au, 597 g/t Ag, 0.5% Pb, and 1.1% Zn (665 g/t AgEq) over 1.63m, including 0.4 g/t Au, 1,460 g/t Ag, 0.8% Pb, and 1.9% Zn (1,574 g/t AgEq) over 0.6m, plus 0.36 g/t Au, 21 g/t Ag, 0.7% Pb and 1.3% Zn (109 g/t AgEq) over 5.16m; hole DDSA-21-47 with 0.5 g/t Au, 274 g/t Ag, 0.3% Pb, and 1.2% Zn (362 g/t AgEq) over 3.5m, including 0.47 g/t Au, 474 g/t Ag, 0.4% Pb, and 1.3% Zn (564 g/t AgEq) over 1.80, and further down this hole encountered historical working with poor recovery core that returned 0.4 g/t Au, 183 g/t Ag, 0.8% Pb, and 1.7% Zn (289 g/t AgEq) over 12m; and hole DDSA-21-46 with 0.25 g/t Au, 9 g/t Ag, 1.4% Pb, and 4.3% Zn (212 g/t AgEq) over 3.15m.  These results confirm up-dip and down-dip continuity of the main Veta Grande vein-structure outside of the current resource estimate.

ON MINING

  • Minera Alamos Inc. provided an updated on the ongoing ramp up of mining operations at its Santana project in Sonora. The company continued to expand blasting and mining activities aimed at removing the upper portion of the Nicho Norte mineralized “pipe”. The company has mined out over 147K tonnes from June to August, the same that were placed on the leach pad. The average grade of the blasthole assays in the mineralized zone was 0.86 g/t Au.

ON FINANCING

  • No relevant news.

ON RESOURCES AND DEVELOPMENT

  • Almaden Minerals Ltd., provided an update on its current drilling program at the Ixtaca project in Puebla. The company has identified an increase in the number of COVID 19 cases in the  municipality of Ixtacamaxtitlan and has decided to pause drilling for two weeks out. To date, Almaden has drilled only one hole at the Southeast Alteration Zone to a depth of 78m. Core samples have been already dispatched to lab for assay.
  • Coeur Mining Inc., provided an update of its ongoing infill and expansion drilling program at its Palmarejo property in Chihuahua. Drilling highlights of the infill program conducted at the Independence deposit include hole HGDH_050 with 3.8 g/t Au and 271 g/t Ag over 3.5m; hole HGDH_069 with 4.8 g/t Au and 531 g/t Ag over 16.8m; hole HGDH_072 with 23.7 g/t Au and 819 g/t Ag over 3.9m, and VIDH_161 with 9.3 g/t Au and 538 g/t Ag over 3.4m. At the Patria deposit, highlights include hole LPDH with 6.2 g/ Au and 130 g/t Ag over 13m. Expansion drilling is also being conducted at Elmira and Johnson areas and highlights include hole EL21-0850-192-X30 with 36.3 g/t Au over 4.5m, hole EL21-0850-192-X23 with 16.5 g/t Au over 6m; and hole EL21-0850-156-X11 with 27.8 g/t Au over 3.2m, 220 g/t Au over 0.2m; and 53.7 g/ Au over 0.4m. “Coeur plans to transition its focus on various resource expansion targets in the remainder of 2021, while also continuing the infill program at the Independencia North, Hidalgo and La Patria zones”.
  • Discovery Silver Corp., reported positive results from metallurgical test work at its Cordero property in Chihuahua. Sulphide flotation test work returned silver recoveries of 80-89%, lead recoveries of 83-91%, and zinc recoveries of 81-90% from locked cycle tests, while oxide & transition cyanidation test work returned silver recoveries of 54-80%, and gold recoveries of 61-75% at coarse crush / grind sizes from coarse bottle roll testing.
  • Endeavour Silver Corp., completed a Feasibility Study (FS) on its Terronera property in Jalisco. Highlights of the FS at Base Case (using USD $24 silver and USD $1,800 gold ) are an after-tax NPV (5%) of USD $174M, after-tax IRR of 21.3%, a payback period of 3.6 years, a pre-tax cumulative undiscounted free cash flow of USD $476M, and after-tax cumulative undiscounted free cash flow of USD $311M. These figures are for an underground mine operation that will process 7.4M tonnes of ore at 1,700 tons per day over the 12-year mine life.
  • Fabled Silver Gold Corp., announced additional results from its 1,200m drilling program conducted at its Santa Maria property in Chihuahua. Hole SMUG-21-14 intersected 0.23 g/t Au, 81 g/t Ag, 0.1% Pb, 0.1% Zn, and 0.01% Cu (93 g/t AgEq) over 7.2m, including 0.5 g/t Au, 143 g/t Ag, 0.5% Pb, 0.3% Zn, and 0.01% Cu (143 g/t AgEq) over 4m, plus 0.33 g/t Au, 177 g/t Ag, 0.1% Pb, 0.4% Zn, and 0.01% Cu (177 g/t AgEq) over 6.75m, including 0.53 g/t Au, 286 g/t Ag, 0.2% Pb, 0.6% Zn, and 0.01% Cu (286 g/t AgEq) over 3.85m, including 1.08 g/t Au, 634 g/t Ag, 0.3% Pb, 0.9% Zn, and 0.02% Cu (690 g/t AgEq) over 1.35m. “Holes SMUG21- 16, 17 and 18 have been completed and submitted for assay. Hole SMUG21- 18 is the last hole drilled for the underground drill campaign”.
  • GoGold Resources Inc., released results from five holes drilled at its Los Ricos project in Jalisco. The most significant drill intersection was encountered in hole LRGF-21-060 collared at El Favor deposit with 0.36 g/t Au and 238 g/t Ag (3.54 g/t AuEq or 265 g/t AgEq) over 82.9m, including 0.62 g/t Au and 408 g/t Ag (6.05 g/t AuEq or 454 g/t AgEq) over 44.4m, including 1.09 g/t Au and 700 g/t Ag (10.43 g/t AuEq or 782 g/t AgEq) over 13.8 m, including 1.56 g/t Au and 1,009 g/t Ag (15.02 g/t AuEq or 1,126 g/t AgEq) over 8.1m, including 5.66 g/t Au and 2,163 g/t Ag (34.49 g/t AuEq or 2,587 g/t AgEq) over 1.4m.
  • Gold Resource Corporation confirmed down-dip extension of the Switchback Vein System at its Arista mine in Oaxaca, with interceptions of precious and base metal mineralization approximately 80m below existing workings. “The results of drilling completed during the second and third quarters of 2021 have confirmed the potential for adding precious metal bearing mineralization that is amenable to mining in the short term. Geologists continue to focus on exploring new areas and identifying additional mineralization along strike as well as up- and down-dip of the current mine workings.” At its Don David mine, the company commenced the process of ramping up activities after bringing employees back to the mine site, and provided an updated 2021 production guidance. Gold Resource expects to produce 21K-23K Oz Au and 1.1-1.3M Oz Ag, at cash and AISC of USD $250- 290 and USD $800-900 per Oz AuEq.
  • Golden Tag Resources Ltd., released results from its drilling program conducted at its San Diego property in Durango. Hole 21-57 intersected directly over top of the NW contact of the Fernandez Zone 0.1 g/t Au, 43 g/t Ag, 0.2% Pb,  0.3% Zn, and 0.02% Cu ( 76 g/t AgEq) over 273.65m, including 0.55 g/t Au, 628 g/t Ag, 1.1% Pb, 3.61 g/t Zn, and 0.12% Cu (892 g/t AgEq) over 10m. Other significant intersections included in this long interval are 0.11 g/t Au, 362 g/t Ag, 1.2% Pb, 2.8% Zn, and 0.26% Cu (570 g/t AgEq) over 1.07m, 0.1 g/t Au, 221 g/t Ag, 3.8% Pb, 2.5% Zn, and 0.12% Cu (492 g/t AgEq) over 1.23m, and 0.08 g/t Au, 43 g/t Ag, 0.7% Pb, 0.8% Zn, and 0.05% Cu (115 g/t AgEq) over 17m, plus a deeper intersection (1849 target area) of 0.13 g/t Au, 20 g/t Ag, 0.6% Pb, 0.7% Zn, and 0.05% Cu (92 g/t AgEq) over 134.37m, including 0.22 g/t Au, 25 g/t Ag, 0.6% Pb, 0.9% Zn, and 0.07% Cu (117 g/t AgEq) over 66.04m. “This new discovery sits directly over top of the NW contact of the Fernandez Zone and contains a broad interval of silver mineralization that will be tested for continuity and the potential for additional open pit style of mineralization. The second discovery was made within the 1849 Target area, which now becomes the 1849 Zone, located only 120 m NW of the Fernandez Zone.”
  • GR Silver Mining Ltd., presented results from the exploration program conducted on the GAP area located between the San Juan and San Marcial areas in Sinaloa. Channel sampling highlights include 10.72 g/t Au and 251 g/t Ag over, 0.3m; 0.81 g/t Au and 1,450 g/t Ag over 0.35m; and 2.77 g/t Au and 363 g/t Ag over 0.3m. Rock chip sampling highlights include 0.54 g/t Au, 3.5% Pb, and 11.8% Zn; 1.6 g/t Au and 440 g/t Ag. The company controls 7km of structural trend between San Marcial and San Juan areas, which hosts the new GAP Area discovery.
  • Prime Mining Corp., released results from its phase 1 drilling program conducted at its Los Reyes property in Sinaloa. Drilling highlights include hole 21GE-20 with 35.37 g/t Au and 1.626 g/t Ag over a true width (TW) of 6m, including 62.6 g/t Au and 2,574 g/t Ag over a TW of 3m; hole 21GE-18 with 15.58 g/t Au and 270 g/t Ag over a TW of 9.4m; and hole 21GE-19 with 2.66 g/t Au and 118 g/t Ag over a TW of 30.7m. These drill results expands the open-pit potential at Guadalupe East Vein System. 
  • Silver Tiger Metals Inc., presented results from its ongoing drilling program at its El Tigre property in Sonora. The most significant drill intersection was encountered in hole 21-236  on Soy Vein with 0.34 g/t Au, 324 g/t Ag, 0.47% Cu, 0.7% Pb, and 0.4% Zn (428 g/t AgEq) including 0.27 g/t Au, 894 g/t Ag, 0.9% Cu, 0.8% Pb, and 0.5% Zn (1,039 g/t AgEq) over 0.8m.
  • SilverCrest Metals Inc., announced infill and expansion drilling results in the Babicanora Area at its Las Chispas property in Sonora. Drilling highlights include hole BV21-307 with 17.13 g/t Au and 1,830 g/t Ag (3,319 g/t AgEq) over a true width (TW) of 2.96m, including 42.3 g/t Au and 4,490 g/t Ag (8,166 g/t AgEq) over a TW of 1.21m; hole BV21-308 with 15.83 g/t Au and 1,440 g/t Ag (2,815 g/t AgEq) over a TW of 3.55m, including 93.6 g/t Au and 7,750 g/t Ag (15,884 g/t AgEq) over a TW of 3.55m, including 93.6 g/t Au and 7,750 g/t Ag (7,249 g/t AgEq) over a TW of 0.42m; and hole BV21-340 with 34.4 g/t Au and 4,260 g/t Ag (7,249 g/t AgEq) over a TW of 0.41m. This drilling is targeting conversion of an estimated 15.4M Oz AgEq grading 9.97 g/t Au and 708 g/t Ag, or 1,574 g/t AgEq.

ON DEALS AND CORPORATE ISSUES

  • No relevant news.

ON SOCIAL RESPONSIBILITY

  • Fresnillo plc, through Minera Juanicipio promotes the economy of the communities of Carrillo and Mexico Nuevo in Fresnillo, Zacatecas. The company carried out the programs “Family Gardens” and “Backyard Birds” in the communities of Carrillo and Mexico Nuevo, in order to stimulate the local economy and benefit 50 families from Fresnillo, Zacatecas. This activity has the support of local authorities.

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, calcite veinlets hosted in an oxidized siltstone-sandstone sequence in a prospect in Chihuahua, Mexico.  Photo by Miguel A Heredia.

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