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

By Jorge Cirett

During the 45th week of the year (November 8th to November 14th, 2021), at least 22 press releases were announced by companies working in Mexico. To note, seven companies posted exploration advances on their properties, five released Q3 reports, two on financing related news and one on marketing services contracting, while five companies posted on project development or resource definition and one more on a project acquisition. ON MEXICO ISSUES, no relevant news. ON EXPLORATION, In Sonora, Starcore International is exploring its Tecouitla and Meztli 4 concessions; Colibri Resources started RC drilling at Evelyn; Minaurum Gold informed on drilling at Alamos Silver; Silver Tiger reported high-grade results from drilling at El Tigre; Tocvan Ventures commenced field operations at Pilar. In Durango, Canasil Resources is to resume drilling at Nora.   ON MINING, Gatos Silver, Avino Silver, Pan American Silver, Fortuna Silver and Endeavour Silver (all silver companies) presented their Q3 2021 reports. ON FINANCING, Candelaria Mining contracted the service of two marketing companies. Heliostar Metals closed a financing round for $4 M. Great Panther announced the underwriting of $20 M in shares. ON RESOURCES AND DEVELOPMENT, Fabled Silver released results from underground drilling at Santa Maria, Chihuahua. GoGold Resources reported drilling results from Los Ricos North in Jalisco. Pan American Silver disclosed further impressive drilling results from La Colorada Skarn in Zacatecas. Golden Minerals released RC drilling results from Rodeo, Durango. Osisko Development disclosed drilling results from the Sapuchi deposit at San Antonio in Sonora.   ON DEALS AND CORPORATE ISSUES, Millrock Resources singed an agreement with Mine Discovery Fund on El Batamote property in Sonora. ON SOCIAL RESPONSIBILITY, Coanzamex, Industrias Peñoles and Fresnillo PLC informed on its support for communities, science and education.

ON MEXICO ISSUES

  • No Relevant News.

ON EXPLORATION

  • Starcore International Mines Ltd. is to start drilling at it “Meztli 4” and “Tecouilta” mining concessions in Sonora. The first stage drilling is to explore five veins that have more than eight months of reconnaissance work and 2,000 surface samples. Starcore holds 14,451 hectares in the area, which includes the Creston molybdenum deposit. The veins range from 0.55 to 1.07 m in width at the surface, with grades of up to 4.19 gpt Au and 250 gpt Ag.
  • Monarca Minerals Inc. released results from reverse circulation drilling at San Jose, in Chihuahua. “Large volumes of skarn and altered intrusive rocks have been intersected in the drilling …….. Mineralization is hosted in both exoskarn and endoskarn and in silicified intrusive rocks, which are locally potassically altered”. Some of the highlighted hole-length intervals comprise 3 m @ 4.07 gpt Au, 6 gpt Ag, 0.2% Pb, 0.5% Zn; 1.5 m @ 79 gpt Ag, 0.34% cu, 0.4% Pb, 1.5% Zn; 6.1 m @ 0.36 gpt Au, 3 gpt Ag, 1% Cu; 3 m @ 3.11 gpt Au, 32 gpt Ag, 0.13 % Cu; 1.5 m @ 0.92 gpt Au, 2 gpt Ag; 4.6 m @ 0.13 gpt Au, 0.33% Cu.
  • Colibri Resources Corp. started reverse circulation drilling at its Evelyn project in Sonora. The first 5,000 m phase of drilling will take approximately two months, focusing on targets generated by high-grade surface and trench sample results coincident with magnetic gradients and lineaments and mapped structures.
  • Minaurum Gold Inc. informed on drilling results at its Alamos Silver project in Sonora. “. Drilling at the Alessandra vein recently discovered a blind Ag-Cu-Pb-Zn skarn that is open in all directions while ongoing drilling at Europa-Guadalupe continues to delineate a high-grade mineralized vein system which is now been extended by 40% to at least 800 meters in length. Europa-Guadalupe remains open at depth and along strike”. Highlighted core-length results comprise 1.60 m @ 174 gpt Ag, 1.3% Cu; 1.20 m @ 0.3% Pb, 2.4% Zn; 5.05 m @ 106 gpt Ag, 0.2% Pb, 0.5% Zn; 2.25 m @ 228 gpt Ag, 0.1 gpt Au, 0.17% Cu, 0.5% Pb, 1.3% Zn; 1.55 m @ 139 gpt Ag, 0.13% Cu, 0.1% Pb, 0.2% Zn; 1.65 m @ 240 gpt Ag, 0.4% Cu, 0.5% Pb, 0.6% Zn; 1.10 m @ 1.2% Pb, 7.6% Zn; 0.90 m @ 57 gpt Ag, 0.24 gpt Au, 1.0% Pb, 3.0% Zn; 3.85 m @ 57 gpt Ag, 0.56 gpt Au, 0.8% Pb, 2.1% Zn; 11.05 m @ 120 gpt Ag, 0.25 gpt Au, 1.12% Cu, 0.4% Pb, 1.8% Zn; 6.40 m @ 147 gpt Ag, 0.13% Cu, 0.3% Pb, 0.6% Zn; 0.95 m @ 435 gpt Ag, 0.35 gpt Au, 0.43% Cu, 1.4% Pb, 3.6% Zn; 0.70 m @ 513 gpt Ag, 0.26% Cu, 0.2% Pb, 0.3% Zn; 1.50 m @ 1.1 gpt Au; 2.85 m @ 91 gpt Ag, 0.24% Cu, 0.3% Pb, 0.5% Zn; 21.85 m @ 62 gpt Ag, 0.14% Cu, 0.2% Pb, 0.4% Zn.
  • Silver Tiger Metals Inc. reported high-grade results from drilling on the Seitz Kelley vein at El Tigre project in Sonora. Highlighted core-length intervals comprise 17.5 m @ 31.53 gpt Au, 139 gpt Ag, 0.11% Cu, 0.9% Pb, 2.2% Zn, including 1.6 m @ 343.12 gpt Au, 238 gpt Ag, 0.1% Cu, 1.6% Pb, 2.6% Zn (which includes 0.5 m @ 1,097.8 gpt Au, 255 gpt Ag), and 7.1 m @ 0.21 gpt Au, 277 gpt Ag, 0.24% Cu, 1.8% Pb, 4.7% Zn. “The historical underground workings on the Seitz Kelly vein extended over a strike length of 1,000 meters on 11 working levels. Geological and assay plan maps from the original operations were recovered from the Anaconda Collection archives at the University of Wyoming. A total of 5,301 underground channel samples with gold and silver assays in the Seitz Kelly workings (levels, raises, winzes, crosscuts) were digitized and plotted. Mining on the upper levels of the Seitz Kelly vein was advanced to Section 5500N but only to 5100N on Level 6 and 5000N on Level 7 below the Espuelas Canyon (see Sooy and Seitz Kelly Vein Plan Map) when the mine shut down in 1930. Both drifts were advancing to the north in high grade ore”.
  • Tocvan Ventures Corp. commenced field operations at Pilar, in Sonora. The company intends to evaluate surface mineralization with trenching and channel sampling, metallurgical studies and additional 5,000 to 8,000 m of drilling.
  • Canasil Resources Inc. is planning to resume core drilling at the Nora project in Durango. The work is set to start on the third week of November, and is to focus on testing below and along strike extensions of the Candy vein high-grade already defined. Ten holes have tested the Candy vein for 500 m of the 3 Km traced strike on the surface, to a depth of 175 below, returning up to 11.29 true-width @ 5.31 gpt Au, 336 gpt Ag.

ON MINING

  • Gatos Silver Inc. reported third quarter 2021 operational and financial results. At Cerro Los Gatos in Chihuahua, 242.9 K tonnes were mined, 234 K tonnes milled at 2,544 tpd, averaging 256 gpt Ag, 0.30 gpt Au, 2.35% Pb, 4.10% Zn, containing 1.7 M Oz Ag, 1.3 K Oz Au, 10.8 M Lb Pb, 13.5 M Lb Zn, having recovered 89% Ag, 63% Au, 91% Pb, 74% Zn. By-product cash cost was $3.58 per AgEq Oz and By-product AISC $19.57 per AgEq Oz.
  • Avino Silver & Gold Mines Ltd. presented its consolidated financial results for the third quarter 2021. During the period at the Avino mine in Durango, 58.2 K tonnes were milled to produce 77.9 K Oz Ag, 1,183 Oz Au, 685.5 K Lb Cu, at cash cost $6.75 per AgEq and AISC of $25.60. Currently mining and milling are proceeding at between 1,000 and 1,500 tpd, below the 2,500 tpd plant capacity. As announced before, the La Preciosa property was acquired and plans are being prepared to integrate production into the Avino operations.
  • Pan American Silver Corp. reported unaudited results for the third quarter 2021, including some figures from its Mexican operations. At La Colorada, in Zacatecas, 1.4 M Oz Ag, 700 Oz Au were produced at cash cost $12.65 and AISC $18.48 per Ag Oz. At Dolores, in Chihuahua, 484 K Oz Ag, 39.6 K Oz Au were produced at cash cost $767 and AISC $951 per Au Oz.
  • Fortuna Silver Mines Inc. reported third quarter 2021 financial results, including figures from its Mexican operations. At San Jose, in Oaxaca, 250 K tonnes were milled at an average rate of 2,862 tonnes per day (tpd), grading 185 gpt Ag, 1.22 gpt Au, with recoveries of 92% and 91% respectively, to produce 1.43 M Oz Ag, 8,910 Oz Au at cash cost $9.99 per Oz AgEq and an AISC of $15.51 per Oz AgEq.
  • Endeavour Silver Corp. released its financial results for the Q3 2021. The company operates the Guanaceví mine in Durango and the Bolañitos mine in Guanajuato, having suspended recently operations at the El Compas mine in Zacatecas. During the period 1.3 M Oz Ag, 10,541 Oz Au were produced at $8.16 per Oz Ag and AISC of $17.46 per Oz AgEq, net of gold credits.

ON FINANCING

  • Candelaria Mining Corp. has contracted the services of two marketing companies, Adelaide Capital Markets Inc. and Investor News Network (Caballo Blanco, Veracruz).
  • Heliostar Metals Ltd. closed the second and final tranche of its non-brokered private placement offering for gross proceeds of $2.713.6 K, which combined with the first tranche amount to aggregate gross proceeds of $4 M (Cumaro, Sonora).
  • Great Panther Mining Ltd. announced an agreement under which the underwriters are to buy shares of the company for aggregate gross proceeds of $20 M (Guanajuato Mine Complex, Guanajuato and Topia, Durango).

ON RESOURCES AND DEVELOPMENT

  • Fabled Silver Gold Corp. released results from underground diamond drilling on its Santa Maria property in Chihuahua. The highlighted core-length interval is 16.50 m @ 0.04 gpt Au, 20 gpt Ag, including 3.0 m @ 0.11 gpt Au, 42 gpt Ag, and 1.50 m @ 0.11 gpt Au, 50 gpt Ag, and 1.50 m @ 0.12 gpt Au, 33 gpt Ag. The interval is in a dike with 1 mm stockwork quartz/oxidized pyrite veining.
  • GoGold Resources Inc. reported results form 11 holes at Mololoa and 19 holes at El Nayar at its Los Ricos North project in Jalisco. Some of the highlighted core-length intervals at Mololoa comprise 8.5 m @ 0.12 gpt Au, 50 gpt Ag; 23.5 m @ 0.25 gpt Au, 78 gpt Ag; 1.4 m @ 1.87 gpt Au, 798 gpt Ag; 5.0 m @ 0.23 gpt Au, 75 gpt Ag; 19.9 m @ 0.39 gpt Au, 90 gpt Ag; 6.8 m @ 0.12 gpt Au, 51 gpt Ag; 9.7 m @ 0.35 gpt Au, 97 gpt Ag, and 8.0 m @ 0.21 gpt Au, 70 gpt Ag; 7.1 m @ 0.33 gpt Au, 126 gpt Ag; 3.9 m @ 1.73 gpt Au, 288 gpt Ag; 16.6 m @ 0.50 gpt Au, 116 gpt Ag; 5.6 m @ 0.27 gpt Au, 81 gpt Ag; 5.5 m @ 157 gpt Ag; 1.5 m @ 0.36 gpt Au, 335 gpt Ag; 3.8 m @ 0.87 gpt Au, 161 gpt Ag; 14.1 m @ 0.12 gpt Au, 92 gpt Ag; 3.1 m @ 3.20 gpt Au, 67 gpt Ag at El Nayar.
  • Pan American Silver Corp. provided results from 39 infill and step-out holes at La Colorada Skarn in Zacatecas. During the current year 36,000 m of infill drilling and 14,000 m of exploration drilling have been completed, and 18,000 m are planned before the year ends and a further 60,000 m in 2022. Highlighted core length intervals comprise 31.9 m @ 48 gpt Ag, 0.13% Cu, 3.5% Pb, 5.2% Zn; 77.1 m @ 119 gpt Ag, 0.26% Cu, 7.7% Pb, 13.6% Zn; 114.6 m @ 133 gpt Ag, 3.6% Pb, 4.8% Zn; 70.3 m @ 82 gpt Ag, 4.2% Pb, 10.0% Zn; 204.5 m @ 48 gpt Ag, 0.19% Cu, 3.2% Pb, 5.3% Zn; 181.7 m @ 60 gpt Ag, 0.13% Cu, 3.8% Pb, 4.3% Zn; 96.3 m @ 19 gpt Ag, 2.4% Pb, 3.1% Zn; 89.0 m @ 65 gpt Ag, 0.19% Cu, 3.3% Pb, 6.6% Zn; 264.1 m @ 60 gpt Ag, 0.23% Cu, 3.4% Pb, 6.8% Zn; 314.1 m @ 35 gpt Ag, 0.17% Cu, 0.17% Cu, 1.6% Pb, 2.8% Zn; 64.5 m @ 69 gpt Ag, 0.15% Cu, 2.1% Pb, 4.7% Zn; 111.0 m @ 41 gpt Ag, 0.22% Cu, 1.3% Pb, 4.3% Zn.
  • Golden Minerals Co. released assays from its reverse circulation and diamond drill programs at Rodeo, in Durango. Highlighted drilled-length intervals comprise 28 m @ 2.0 gpt Au, 18 gpt Ag; 34 m @ 2.3 gpt Au, 9 gpt Ag; 20 m @ 8.2 gpt Au, 23 gpt Ag; 26 m @ 2.4 gpt Au, 23 gpt Ag; 24 m @ 3.7 gpt Au, 14 gpt Ag. “The 2021 drilling programs conducted at Rodeo consisted of 47 RC holes totaling 3,187m, plus 35 diamond holes totaling 2461m”.
  • Osisko Development Corp. announced drilling results from its exploration and category conversion drill program at its San Antonio project in Sonora. Mineralization at Sapuchi, Golfo de Oro and California is in a hydrothermal breccia 3,000 m long with intense sericite-chlorite alteration in sedimentary rocks, related to an intrusion and interpreted as of iron oxide gold style affinity (IOCG). A total of 27,000 m on 156 holes have been drilled in 2021, of which results for the first 41 holes at Sapuchi were presented on this press release. Core length results comprise 12.50 m @ 2.16 gpt Au; 10.25 m @ 2.37 gpt Au; 17.70 m @ 1.01 gpt Au, 12 gpt Ag; 13.85 m @ 1.50 gpt Au; 9.45 m @ 1.58 gpt Au, 32 gpt Ag; 20.45 m @ 1.08 gpt Au; 22.15 m @ 1.59 gpt Au; 12.65 m @ 2.94 gpt Au; 9.00 m @ 2.24 gpt Au, 14 gpt Ag; 39.90 m @ 1.02 gpt Au; 19.30 m @ 1.60 gpt Au; 22.00 m @ 1.30 gpt Au; 21.65 m @ 2.14 gpt Au; 29.20 m @ 1.52 gpt Au, 14 gpt Ag; 11.85 m @ 1.80 gpt Au; 9.10 m @ 2.19 gpt Au.

ON DEALS AND CORPORATE ISSUES

  • Millrock Resources inc. signed a binding letter agreement (and received a US$50 K payment) with Mine Discovery Fund Pty. Ltd. on its El Batamote property in Sonora. A definitive agreement will be signed once MDF incorporates a subsidiary company in Mexico. To earn a 100% interest in the concessions, cash payments for a total of US$1 M over five years should be made, execute US$6 M in exploration and pay Millrock US$250 K in shares. If the purchase option is exercised, annual advanced minimum royalty payments will have to be made, the first of US$50 K, and then increasing annually until a US$500 K is reached, remaining capped at that level until commercial production is achieved, when a 1% NSR on production enters into effect.  The Batamote property hosts porphyry copper mineralization in the Cananea – La Caridad trend.

ON SOCIAL RESPONSIBILITY

  • Coanzamex informed on its sponsorship of the fire department in Parral, Chihuahua.
  • Industrias Peñoles and Fresnillo PLC informed on their support for basic science and education.
  • Grupo Mexico announced the donation of tree saplings to the Chihuahua government.

On the image below: Porphyritic dike on a porphyry copper project in the Sonoran Desert. Picture by Jorge Cirett.

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