By Miguel A Heredia
During the 12th week of the year (March 21st to March 27th, 2022), at least 28 press releases were announced by companies working in Mexico, with eight disclosing deals and corporate issues, seven reporting resources and developments of their properties, seven informing on exploration results, four communicating production and financial results, and two announcing financial issues, ON MEXICO ISSUES, no relevant news. ON EXPLORATION, In Sonora, Infinitum Copper commenced a geophysical survey at its Adelita project, Tocvan completed 1,540m of its phase III drilling program at its Pilar project and provided an update on its Picachos project, the Aztec Minerals-Kootenay JV released results from the ongoing 2022 RC program on its Cervantes project, and Benjamin Hill announced results of the recently completed induce polarization survey and provided an update on the ongoing drill program at its Sonora project. In Chihuahua, Radius announced drill results from its ongoing drilling program at its Amalia project. In Coahuila, Monumental announced that it will be visiting its Jemi heavy rare earth element property during the month of May. ON MINING, Fortuna Silver reported Q4 and full year 2021 production results from its San Jose Mine in Oaxaca. Golden Minerals announced full year 2021 financial results and provided a 2022 forecast for its Rodeo production in Durango. Impact Silver reported full year 2021 production and financial results from its Zacualpan mining district in the State of México. SilverCrest presented full year 2021 financial results. ON FINANCING, Endeavour closed a bought deal financing for gross proceeds of USD $46M, including the exercise of the over-allotment option in full (Pitarrilla project, Durango). Zacatecas Silver announced the closing of a $19.15M offering of subscription receipts (Esperanza Gold project, Morelos) ON RESOURCES AND DEVELOPMENT, Zacatecas Silver received the approval from the Mexican Federal Environmental Permitting Agency (SEMARNAT) for 27 new drill pads at its Panuco project, Zacatecas. Silver Tiger reported results from its ongoing drill program from its El Tigre project in Sonora. Torex announced it will release an updated technical report for the Morelos Complex by March 31, 2022. Silver Dollar reported results from the drilling program recently completed at its La Joya project in Durango. Golden Minerals completed technical reports for their Rodeo and Velardeña properties in Durango, including updated mineral resources. Golden Tag released results from 2 holes drilled at its San Diego project in Durango. ON DEALS AND CORPORATE ISSUES, Guanajuato Silver announced the appointment of Ramón Dávila to the position of President (Cubo and Pinguico projects, Guanajuato). Avino closed the acquisition of La Preciosa project in Durango with Coeur Mining. Aztec Minerals informed that its common shares traded in USA under the symbol AZZTF are now Depository Trust Company (Cervantes project, Sonora). Gold Resource announced its 2022 annual meeting of shareholders (Don David Gold Mine, Oaxaca). Magna entered into an amending agreement with Peal de México on the acquisition of the San Francisco mine, Sonora. Tarachi announced the appointment of its VP of Operation, and signed a new land and water rights agreement with the local Magistral Ejido Community (Magistral Tailings project, Durango). Bear Creek provided an update on the acquisition of Mercedes mine in Sonora. GoGold reported results of six holes from its Los Ricos North project in Jalisco. ON SOCIAL RESPONSIBILITY, no relevant news.
ON MEXICO ISSUE
- No relevant news.
- Infinitum Copper Corp., commenced a magneto-telluric geophysical survey at its Adelita project in Sonora. It will consist of 10 lines totaling 14.8km and is expected to be completed in three weeks.
- Tocvan Ventures Corp., completed nine holes for a total of 1,540m of its phase III drilling program at its Pilar project in Sonora, looking to expand the Main Zone. All samples have been submitted to lab and results will be released once they are available. At Picachos project, the company is doing site visits to determine the best use of exploration funds in the near term. Currently, Tocvan has already obtained drill and trenching fully permits for 15km and 2km respectively. Drilling will take place once assessment of key target areas by mapping, geochemistry and geophysics are complete.
- The Aztec Minerals Corp –Kootenay Silver Inc JV released results from the ongoing 2022 RC program on its Cervantes project in Sonora. Drilling highlights include hole CAL22-008 with 0.88 g/t Au over 54.72m, including 1.96 g/t Au over 13.72m, plus 0.74 g/t Au over 7.6m; hole CAL22-009 with 0.5 g/t Au over 86.64m; and hole CAL22-010 with 0.53 g/t Au over 138.82m, including 1.62 g/t Au over 10.67m. The Aztec-Kootenay JV has now completed its Phase 2 RC program with 26 holes for a total of 4,649m drilled. “It covers an area now measuring approximately 900m long by 250 to 500m wide, with demonstrated, continuous mineralization up to 265 metres depth vertically. The porphyry gold-copper mineralization is still open in all directions”.
- Benjamin Hill Mining Corp., announced results of the recently completed induce polarization (IP) survey and provided an update on the ongoing drill program at its Sonora project in Sonora. The IP survey consisted of eight lines for a total of 11,200m over known zones of mineralization. Multiple geophysical anomalies were detected including seven high chargeability and six medium chargeability anomalies, and three high priority resistivity anomalies, and one medium priority resistivity anomaly. “The affinity of the geophysical anomalies with positive surface sampling results has provided the geological team with prime drill targets in each exploration area”. On the other hand, the company has completed 13 of the planned 32 holes for a total of 3,310.85m out of the 8,500m planned. Assays are still pending.
- Radius Gold Inc., announced drill results from its ongoing drilling program on El Cuervo target at its Amalia project in Chihuahua. Drilling highlights include hole AMDD21-49 with 144 g/t Ag and 0.92 g/t Au over a true width (TW) of 15.3m, including 190 g/t Ag and 1.01 g/t Au over a TW of 9.1m, including 469 g/t Ag and 0.97 g/t Au over a TW of 0.9m, including 483 g/t Ag and 3.94 g/t Au over a TW of 1m; and hole AMDD21-48 with 116 g/t Ag and 1.39 g/t Au over a TW of 1.5m, plus 32 g/t Ag and 0.56 g/t Au over a TW of 1.3m, plus 77 g/t Ag and 0.61 g/t Au over a TW of 6.1m, including 125 g/t Ag and 0.68 g/t Au over a TW of 2.1m, and 54 g/t Ag and 0.34 g/t Au over a TW of 36.6m, including 84 g/t Ag and 0.75 g/t Au over a TW of 10.1m, including 139 g/t Ag and 4.02 g/t Au over a TW of 1.65m.
- Monumental Minerals Corp., announced that it will be visiting its Jemi heavy rare earth element property during the month of May to field review airborne radiometric and magnetic geophysical features that relate to peralkaline rocks and associated ore-grade concentrations of rare earth elements, with the aim of defining drill targets.
- Fortuna Silver Mines Inc., reported Q4 and full year 2021 production results from its San Jose Mine in Oaxaca. In Q4, 2021 the company milled 262,282 tonnes of 219 g/t Ag and 1.27 g/t Au with metallurgical recoveries of 93% and 92% respectively, to produce 1.72 M Oz Ag and 9.9K Oz Au. It sold 1.73M Oz Ag and 9,983 Oz Au at a realized price of USD $23.35 per Oz Ag and USD $1,797 per Oz Au. Fortuna reported a cash and all in sustaining cost (AISC) of USD $9.15 and USD $14.52 per Oz AgEq respectively, and a net smelting royalty (NSR) of USD $207.57 per tonne. For the full year 2021, the company reported that it milled 1,041,154 tonnes of 209 g/t Ag and 1.29 g/t Au with metallurgical recoveries of 92% and 91% respectively, to produce 6.62M Oz Ag and 39.4K Oz Au. Fortuna sold 6.43M Oz Ag and 34.4K Oz Au at a realized price of USD $25.15 per Oz Ag and USD $1,798 per Oz Au. The company reported a cash and AISC of USD $9.30 and USD $14.38 per Oz AgEq respectively, and a NSR of USD $210.95 per tonne.
- Golden Minerals Company announced full year 2021 production and financial results and provided a 2022 forecast for its Rodeo production in Durango. The company processed from Rodeo mine, Durango the amount of 149K tonnes of 4.1g/t Au and 12 g/t Ag with metallurgical recoveries of 75% and 90% respectively to produce 14.4K Oz Au and 59.9K Oz Ag at a cash cost of USD $937 per payable Oz Au. In addition, Golden reported revenues of USD $25.6M, a net operating margin of USD $12.3M, a cost of metals sold of USD $13.3M, cash and equivalents balance of USD $12.2M and a cash inflow of USD $16.6M. The company also provided a 2022 forecast for its Rodeo mine. It expects to process between 175K-180K tonnes of 2.9g/t Au and 9 g/t Ag, with metallurgical recoveries of approximately 80% for both Au and Ag to produce between 12K-14K Oz Au and 42K-47K Oz Ag at a cash cost of USD $1,100-USD$ 1,200 per Oz Au.
- Impact Silver Corp., reported full year 2021 production and financial results from its Zacualpan mining district in the State of México. The company milled 145,458 tonnes of 172 g/t Ag to produce 617.7K Oz Ag. It sold 633.9K Oz Ag. Impact reported revenue of $17.7M, a mine operating earnings before amortization and depreciation of $4.7M, earnings before interests, taxes, depreciation and amortization of $1.5M, cash flow from operations of $3M, cash position of $21.1M, and working capital of $21.5M.
- SilverCrest Metals Inc., presented full year 2021 financial results. The company reported cash and cash equivalents for USD $176.5M and USD $30M remains under a USD $120M project financing facility. It also reported a cash inflow offset by USD $32.9M. During 2021, SilverCrest committed 7.2% (USD $103.6M) of the USD $137.7M feasibility study capital cost estimate. Of the remaining capital to be incurred in 2022, 20.7% (USD $8.9M) is related to the Ausenco fixed price engineering, procurement and construction contract for process plant construction and 14.7% (USD $6.3M) is unused contingency.
- Endeavour Silver Corp., closed a bought deal financing for gross proceeds of USD $46M, including the exercise of the over-allotment option in full. Gross proceeds will be used by the company to pay the USD $35M cash consideration payable to SSR Mining Inc., for the acquisition of Pitarrilla project in Durango, as well as for general corporate purposes and working capital.
- Zacatecas Silver Corp., announced the closing of a $19.15M offering of subscription receipts. Net proceeds will be used to pay the USD $5M cash consideration for the acquisition of the Esperanza Gold project to Alamos Gold, begin the advancing the Esperanza project towards production, fund the ongoing drill program at the company´s existing project and for general working capital purposes.
ON RESOURCES AND DEVELOPMENT
- Zacatecas Silver Corp., received the approval from the Mexican Federal Environmental Permitting Agency (SEMARNAT) for 27 new drill pads at its Panuco project, Zacatecas. The company is presently completing environmental studies at Muleros and San Manuel ahead of drill pad applications.
- Silver Tiger Metals Inc., reported results from its ongoing drill program from its El Tigre project in Sonora. Drilling highlights include hole ET-21-296 on Sooy Vein with 1.73 g/t Au, 687 g/t Ag, 0.01% Cu, 0.2% Pb, and 0.01% Zn (822 g/t AgEq) over 25.9m, including 2.30 g/t Au, 921 g/t Ag, 0.02% Cu, 0.2% Pb, and 0.01% Zn (1,101 g/t AgEq) over 19m, including 4.65 g/t Au, 1,877 g/t Ag, 0.03% Cu, 0.4% Pb, and 0.02% Zn (2,239 g/t AgEq) over 9.2m, including 0.39 g/t Au, 2,450 g/t Ag, 0.03% Cu, 0.3% Pb, and 0.01% Zn (2,489 g/t AgEq) over 2.9m; and hole ET-22-319 on Sooy Vein with 0.24 g/t Au, 160 g/t Ag, 0.01% Cu, 0.2% Pb, and 0.01% Zn (186 g/t AgEq) over 17.3m, including 0.56 g/t Au, 362 g/t Ag, 0.02% Cu, 0.6% Pb, and 0.02% Zn (420 g/t AgEq) over 6.5m, including 1.15 g/t Au, 690 g/t Ag, 0.04% Cu, 0.9% Pb, and 0.01% Zn (804 g/t AgEq) over 2.5m, including 1.44 g/t Au, 887 g/t Ag, 0.07% Cu, 1% Pb, and 0.01% Zn (1,024 g/t AgEq) over 1.5m.
- Torex Gold Resources Inc., announced it will release an updated technical report for the Morelos Complex by March 31, 2022.
- Silver Dollar Resources Inc., reported results from the drilling program recently completed at its La Joya project in Durango. Drilling highlights include holes NOR-21-002 with 110 g/t Ag, 0.19 g/t Au, 0.04% Cu, 0.2% Pb, and 0.3% Zn (131 g/t AgEq) over 5.37m, including 141.3 g/t Ag, 0.06 g/t Au, 0.04% Cu, 0.4% Pb, and 0.4% Zn (161 g/t AgEq); and hole NOR-21-004 with 49 g/t Ag, 19.2 g/t Au, 0.48% Cu, and 0.03% Zn (1,590 g/t AgEq) over 3m, plus 17 g/t Ag, 4.3 g/t Au, 0.1% Cu, and 0.01% Zn (363 g/t AgEq) over 8.37m, including 58 g/t Ag, 29 g/t Au, 0.15% Cu, and 0.01% Zn (2,369 g/t AgEq) over 1.01m. “Drilling focused on the underexplored Noria portion of the Property and was successful in identifying possible structural extensions of the known mineralized zones as well as the discovery of a new shallow high-grade gold zone. The next phase of drilling will focus on these new targets and is expected to commence before month-end”.
- GoGold Resources Inc., reported results of six holes drilled at the Mololoa deposit within its Los Ricos North project in Jalisco. Significant mineralization was encountered in hole LRGM-21-093 with 0.19 g/t Au and 111 g/t Ag (1.68 g/t AuEq or 126 g/t AgEq) over 1.7m, plus 0.16 g/t Au and 213 g/t Ag (3.01 g/t AuEq or 226 g/t AgEq) over 2.3m, including 0.59 g/t Au and 912 g/t Ag (12.75 g/t AuEq or 956 g/t AgEq) over 0.5m, plus 0.28 g/t Au and 100 g/t Ag (1.62 g/t AuEq or 122 g/t AgEq) over 31.9m, including 3.33 g/t Au and 827 g/t Ag (14.36 g/t AuEq or 1,077 g/t AgEq) over 0.6m; and hole LRGM-21-104 with 1.09 g/t Au and 235 g/t Ag (4.22 g/t AuEq or 317 g/t AgEq) over 33.4m, including 3.56 g/t Au and 765 g/t Ag (13.76 g/t AuEq or 1,032 g/t AgEq) over 9.8m, including 8.48 g/t Au and 1,682 g/t Ag (30.9 g/t AuEq or 2,317 g/t AgEq) over 3.5m, including 17.15 g/t Au and 3,080 g/t Ag (58.22 g/t AuEq or 4,366 g/t AgEq) over 1.1m.
- Golden Minerals Company completed technical reports for their Rodeo and Velardeña properties in Durango, including updated mineral resources. At Rodeo, Durango, Mineral Resources were calculated having an effective date of October 31, 2021, assuming prices of USD $1,800/ Oz Au and USD $25/Oz Ag. For the low-grade material (stockpile), a cutoff of 1.0 g/t Au was considered to estimate measured resources of 208,500 tonnes grading 1.24 g/t Au and 10 g/t Ag for a total of 8.3K Oz Au and 67.2K Oz Ag contained; indicated resources of 86,400 tonnes of 1.58 g/t Au and 5 g/t Ag for a total of 2.1K Oz Au and 9.4K Oz Ag contained. Measured + Indicated resources are 264,900 tonnes of 1.23 g/t Au and 9 g/t Ag for a total of 10.5K Oz Au and 76.6K Oz Ag contained. Inferred resources are 1,500 tonnes of 1.2 g/t Au and 4 g/t Ag for a total of 58 Oz Au and 198 Oz Ag contained. For the high-grade material a cutoff of 1.6 g/t Au was considered to estimate measured resources of 10,700 tonnes grading 3.11 g/t Au and 13 g/t Ag for a total of 31.1K Oz Au and 131K Oz Ag contained; indicated resources of 43,700 tonnes grading 3.17 g/t Au and 11 g/t Ag for a total of 4.5K Oz Au and 15K Oz Ag contained. Measured + Indicated resources are 954,400 tonnes of 3.12 g/t Au and 13 g/t Ag for a total of 35.6K Oz Au and 146K Oz Ag contained. The Life of Mine is 24 months of operation and assumes 12 months to perform closure and reclamation. The company reported a pre-tax net present value (NPV) of USD $22.9M using a discount rate of 8%. At Velardeña, Durango, Mineral Resources were calculated having an effective date of February 28, 2022, assuming prices of USD $1,744/Oz Au, USD $23.70/Oz Ag, USD $0.97/Lb Pb, and USD $1.15/Lb Zn. Mineral resources are reported at a Net Smelting Royalty of USD $175. Measured resources estimated are 385K tonnes of 327 g/t Ag, 5.58 g/t Au, 1.6% Pb, and 1.8% Zn for a total of 4M Oz Ag, 69K Oz Au, 13.75M Lb Pb, and 15.1M Lb Zn contained; Indicated resources estimated are 883.8K tonnes of 316 g/t Ag, 4.88 g/t Au, 1.5% Pb, and 1.8% Zn for a total of 8.98M Oz Ag, 138.5K Oz Au, 30.16M Lb Pb, and 34.34M Lb Zn contained. Measured + Indicated resources are 1,268,800 tonnes of 319 g/t Ag, 5.09 g/t Au, 1.6% Pb, and 1.8% Zn for a total of 13.03M Oz Ag, 207.5K Oz Au, 43.9M Lb Pb, and 49.94M Lb Zn contained. Inferred resources estimated are 1,709,200 tonnes of 362 g/t Ag, 4.8 g/t Au, 1.7% Pb, and 1.9% Zn for a total of 19.89M Oz Ag, 263.8K Oz Au, 65.26M Lb Pb, and 70.2M Lb Zn. The Life of Mine is 11 years, with a pre-tax NVP of USD $119M using a discount rate of 8%.
- Golden Tag Resources Ltd., released results from 2 holes drilled at its San Diego project in Durango. Hole 21-62 intersected several structures. This hole encountered 0.04 g/t Au, 214 g/t Ag, 0.2% Pb, 0.5% Zn ,and 0.03% Cu (244 g/t AgEq) over 1.75m, plus 0.06 g/t Au, 107 g/t Ag, 0.1% Pb, 0.08% Zn, and 0.03% Cu (122 g/t AgEq) over 0.50m (in the San Jose Zone), plus 1.29 g/t Au, 72 g/t Ag, 0.04% Pb, 0.07% Zn, and 0.02% Cu (182 g/t AgEq) over 2m (on the 57 NE A Zone), plus 0.1 g/t Au, 305 g/t Ag, 2% Pb,3% Zn, and 0.09% Cu (504 g/t AgEq) over 1.2m, plus 0.12 g/t Au, 137 g/t Ag, 0.4% Pb, 0.6% Zn, and 0.05% Cu (187 g/t AgEq) over 0.65m (in the 57 NE B zone). Hole 21-63 also intersected several mineralized intervals. Highlights include 0.48 g/t Au, 142 g/t Ag, 1.3% Pb, 1.6% Zn, and 0.12% Cu (295 g/t AgEq) over 2.10m, plus 0.11 g/t Au, 147 g/t Ag, 0.6% Pb, 0.8% Zn, and 0.04% Cu (211 g/t AgEq) over 0.60m (in the 57 NE B zone), plus 0.16 g/t Au, 284 g/t Ag, 4.4% Pb, 1.4% Zn, and 0.04% Cu (491 g/t AgEq) over 0.50m (in the Montanez zone), plus 0.11 g/t Au, 76 g/t Ag, 0.6% Pb, 1.4% Zn, and 0.05% Cu (166 g/t AgEq) over 10.15m, including 0.15 g/t Au, 229 g/t Ag, 2.2% Pb, 5.6% Zn, and 0.09% Cu (541 g/t AgEq) over 1.66m, plus 0.11 g/t Au, 146 g/t Ag, 1.2% Pb, 1.5% Zn, and 0.1% Cu (260 g/t AgEq) over 1m, plus 0.28 g/t Au, 730 g/t Ag, 4% Pb, 4.6% Zn, and 0.4% Cu (1,095 g/t AgEq) over 0.57m (in the Canta Zone).
ON DEALS AND CORPORATE ISSUES
- Avino Silver & Gold Mines Ltd., closed the acquisition of La Preciosa project in Durango with Coeur Mining Inc., by paying USD $15.3M in cash; a promissory note for USD $5M in favour of Coeur, payable without interest on or before March 21. 2023; the issuance of 14M common shares of Avino to Coeur; the issuance of 7M share purchase warrants exercisable at USD $1.09 per share until September 21, 2023; an additional cash payment of USD $8.75M, to be paid no later than 12 months after initial production at La Preciosa; a 1.25% NSR on the La Gloria and Abundancia areas of La Preciosa and 2% gross value royalty on all of other areas of La Preciosa; and a payment of USD $0.25 per silver equivalent ounce of new mineral reserves discovered and declared outside of the current mineral resource area at La Preciosa, subject to a cap of USD $50M.
- Aztec Minerals Corp., informed that its common shares traded in USA under the symbol AZZTF are now Depository Trust Company. It will increase the visibility and accessibility of the Aztec common shares for current and potential shareholders in USA (Cervantes project, Sonora).
- Gold Resource Corporation announced its 2022 annual meeting of shareholders (Don David Gold Mine, Oaxaca).
- Guanajuato Silver Company Ltd., announced the appointment of Ramón Dávila to the position of President (Cubo and Pinguico projects, Guanajuato).
- Magna Gold Corp., entered into an amending agreement with Peal de México on the acquisition of the San Francisco mine, Sonora. Magna amended the agreement to settle outstanding amounts owing in exchange for the issuance of common shares of the company with a value of USD $1M, which reduced the company´s amount owing by USD $1M from USD $4,054,351 to USD $3,054,351.
- Tarachi Gold Corp., announced the appointment of its VP of Operation, and signed a new land and water rights agreement with the local Magistral Ejido Community. “The Land Lease Agreement is for a 30-year term, granting Tarachi and its Mexican subsidiary’s use of 63.9 hectares of land for mining, processing, and tailings disposal purposes. The Company will pay to the Ejido an amount of MXP $5K (approximately USD $250) per month to maintain the right to retrieve water from within the Ejido’s territory and use of the Ejido’s water related infrastructure. The company and the Ejido have also amended their existing exclusive agreement to purchase mine and process certain tailings materials belonging to the Ejido. The amendment will result in an increase of USD $0.25 per tonne in the purchase fee paid by the Company for Ejido tailings material when gold prices are above USD $1475/Oz, compared to the previous agreement terms.
- Bear Creek Mining Corporation provided an update on the acquisition of the Mercedes mine in Sonora. The completion of the acquisition remains subject to anti-trust approval which the company expects to receive in April 2022. On March 24, 2022, the company and Equinox Gold agreed to extend the outside date for the completion of the Acquisition to April 30, 2022. “The Company has become aware that on March 23, 2022, TRR Offtakes LLC (“Trident”) – a subsidiary of Trident Royalties Plc which in January 2022 acquired a non-material offtake agreement with subsidiaries of Equinox Gold – brought an application for an order of an arbitrator restraining and enjoining the closing of the Acquisition (the “Application”). Bear Creek believes the Application is without merit. The Company intends to hold Trident fully responsible for all loss and damage Bear Creek may suffer as a consequence of Trident’s interfering conduct”.
ON SOCIAL RESPONSIBILITY
- No relevant news.
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On the picture above, sheeted quartz veins in an intermediate sulphidation epithermal vein system in Chihuahua, Mexico. Photo by Miguel A Heredia.