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

Quartz Vein

By Miguel A Heredia

During the 37th week of the year (September 20th to September 26th, 2021), at least 12 press releases were announced by companies working in Mexico and 4 news published by the media, with four informing on exploration results, four announcing financial topics, three disclosing deal and corporate issues, three discussing social issues, one reporting resources and developments, and one commenting on Mexican issues. ON MEXICO ISSUES, Mexico mining sector joined the global climate change agenda. ON EXPLORATION, In Sonora, Benjamin Hill announced its plan to commence an inaugural drill program for its undrilled Sonora Gold property, Colibri and its partner Silver Spruce reported results for the final ten drill holes collared at El Mezquite project, and Tarachi Gold released drill results from its recently completed Phase 2 drilling program at its San Javier project.  ON MINING, no relevant news.  ON FINANCING, Almaden provided an update on the 1.5% NSR the company holds on the Caballo Blanco project in Veracruz. Candelaria upsized its non-brokered private placement for gross proceeds of $7.8M to up to $9.3M, and closed the first tranche of the offering for gross proceeds of $6M (Caballo Blanco project, Veracruz). Great Panther entered into a $20M gold doré prepayment agreement with Asahi Refining Canada Ltd., and $5M lead concentrate prepayment agreement with Samsung C&T U.K. Ltd. Guanajuato Silver signed a silver and gold concentrate sales agreement with Ocean Partners Ltd. ON RESOURCES AND DEVELOPMENT, Silver Dollar filed a drilling permit application for the next phase of drilling at its la Joya property in Durango. ON DEALS AND CORPORATE ISSUES, Altaley announces that it has commenced to trade its common shares on the OTCQX Best Market under the ticker symbol of ATLYF (Campo Morado mine, Guerrero). Millrock signed a definitive agreement with Tocvan on the El Picacho project in Sonora. Southern Silver made the last payment to acquire 100% interest in the Cerro Las Minitas property in Durango. ON SOCIAL RESPONSIBILITY, The Mexican Social Security Institute (IMSS) in Durango received a donation from Grupo Minero BACIS, which consisted of two more equipment for climate conditioning. Gold Resource released its 2020 Sustainability Disclosure Topics & Accounting Metrics at the Don David mine in Oaxaca. Minera Cuzcatlán (Fortuna Silver) has begun its foray into the generation of clean energy for self-consumption in its San Jose mine in Oaxaca.

ON MEXICO ISSUE

  • Mexico mining sector joined the global climate change agenda. Many mining companies at a global level have publicly announced emission reduction targets greenhouse gases (GHG) in the medium term, echoing the emission reduction targets set by the UN for 2030, and aim to achieve the final goal of carbon neutrality by 2050. These global emission reduction plans have been announced by both large mining companies, such as BHP and Newmont (both with operations in Mexico), as well as the mid-cap companies. In the context of Mexico, the Mining Chamber (CAMIMEX) recently published in its 2021 Sustainability Report that the consumption of clean energy among the associated companies increased from 14% to 31% only from 2019 to 2020.

ON EXPLORATION

  • Benjamin Hill Mining Corporation announced its plan to commence an 80 strategic drill holes targeting the main mineralized structures in the Caracahui, Caracahui North, Sonora Copper, La Salada and Antenas exploration areas. The company plans to conduct a 3,200m first phase  consisting of four holes per exploration area and a second phase drilling also four hole per exploration area and a final 1,000m deep exploration hole o test a large geophysical magnetic anomaly and explore for the source of mineralization.
  • Colibri Resource Corporation and its partner Silver Spruce Resources Inc., reported results for the final ten drill holes of its phase 1 drill program 2,485m collared at El Mezquite project in Sonora. Drill highlights include holes MEZ-21-016 with 0.15 g/t Au, 4 g/t Ag, 0.01% Cu, 0.14% Pb, and 0.15% Zn over  6.1m, plus 0.54 g/t Au, 2 g/t Ag, and 0.1% Zn over 6.1m, and plus 0.1 g/t Au, 7 g/t Ag, 0.1% Pb and 0.1% Zn over 1.52m; and hole MEZ-21-12 with 0.5 g/t Au, 25 g/t Ag, and 0.15% Pb over 4.58m.
  • Tarachi Gold Corp., released drill results from its recently completed Phase 2 drilling program at its San Javier project. This Phase consisted of five holes totalling 1,577.50m. The most significant drill intercept was encountered in hole SJA-21-014 with 0.54 g/t Au over 52m, including 1.01 g/t Au over 12m, including 4.11 g/t Au over 1.5m.

ON MINING

  • No relevant news.

ON FINANCING

  • Almaden Minerals Ltd., provided an update on the 1.5% NSR the company holds on the Caballo Blanco project in Veracruz. Its JV partner  Candelaria Mining Corp., announced that it closed the first tranche of a financing for approximately $7.9M of which Agnico Eagle Mines Limited, subscribed for approximately $6M. Now, Agnico owns approximately 19.56% of the issued and outstanding shares of Candelaria Mining.
  • Candelaria Mining Corp., upsized its non-brokered private placement for gross proceeds of $7.8M to up to $9.3M, and closed the first tranche of the offering for gross proceeds of $6M. Gross proceeds will be used for permitting, exploration and development at its Caballo Blanco project in Veracruz.
  • Great Panther Mining Limited entered into a $20M gold doré prepayment agreement with Asahi Refining Canada Ltd., as well as a $5M lead concentrate prepayment agreement with Samsung C&T U.K. Ltd.
  • Guanajuato Silver Company Ltd., signed a silver and gold concentrate sales agreement with Ocean Partners Ltd. “The agreement is for an 18-month period commencing in October 2021. Additionally, Ocean Partners has agreed to provide the Company with a prepayment financing facility of US$1.5m against the proceeds of concentrate sales. This facility will bear interest at 12-month libor + 6.75% (or approximately 6.95% annually) and be repaid in 15 monthly installments after a 3-month grace period”. 

ON RESOURCES AND DEVELOPMENT

  • Silver Dollar Resources Inc., filed a drilling permit application for the next phase of drilling at its la Joya property in Durango. “Three drilling contractors have visited the property and provided bids for the proposed diamond drilling. The drilling bids are being evaluated and a contractor will be selected once the permits have been received”.

ON DEALS AND CORPORATE ISSUES

  • Altaley Mining Corporation announces that it has commenced to trade its common shares on the OTCQX Best Market under the ticker symbol of ATLYF (Campo Morado mine, Guerrero).
  • Millrock Resources Inc., signed a definitive agreement with Tocvan Ventures Corp., on the El Picacho project in Sonora. To acquire 100% interest in the property, Tocvan must make a total payment of USD $1,989,600 to the underlying concession owners (The Suarez Brothers) over a 5-year term. “Millrock will vest with a 2% Net Smelter Returns (“NSR”) royalty. Tocvan may purchase back 1% of the royalty for US$1.0 million. The royalty contains a provision for an Annual Advance Minimum Royalty (“AMR”) that will be triggered if Tocvan exercises the Option Agreement. The initial AMR payment to Millrock would be US$25,000. The amount of the AMR will double each year until commercial production occurs. Any AMR payments made can be deducted from NSR royalty payments”. If Tocvan elects to withdraw from the option agreement, it must return the option rights to Millrock.
  • Southern Silver Exploration Corp., made the last payment to acquire 100% interest in the Cerro Las Minitas property in Durango. The company paid to Electrum USD $2M and issued 7,971,878 common shares equal to USD $2M. As consideration for the acquisition, Southern Silver has paid Electrum an aggregate USD $15M in a combination of cash and common shares.

ON SOCIAL RESPONSIBILITY

  • The Mexican Social Security Institute (IMSS) in Durango received a donation from Grupo Minero BACIS, which consisted of two more equipment for climate conditioning will undoubtedly pay for the stay of those who work and go to receive medical service in the Family Medicine Units (UMF).
  • Gold Resource Corporation released its 2020 Sustainability Disclosure Topics & Accounting Metrics at the Don David mine in Oaxaca. Highlights are a 38% decline in greenhouse gas emissions (or 23% decline related to tons of CO2 equivalent producer per tonne of ore processed; a 14.8% decline in the fresh water withdrawn per tonne of ore processed; a 31% decline in the fresh water consumed per tonne of ore processed; and the percentage of tailings recycled through the paste plant rose to 26% from 5.7% in 2019.
  • Minera Cuzcatlan (Fortuna Silver), has begun its foray into the generation of clean energy for self-consumption, with the installation of 72 solar panels with a system capacity of 30kWh, in its San José mine in Oaxaca. It will allow to have more efficient energy consumption and contribute to the reduction of carbon dioxide emissions on the planet.

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 quartz vein in a low sulphidation epithermal system in a prospect in Chihuahua, Mexico.  Photo by Miguel A Heredia.

Leave a Reply