The Mining and Exploration News in Mexico: Highlights on the First Week of June, 2022. 

Cu silicates (chrysocolla)

By Miguel A Heredia

During the 22ndweek of the year (May 30th to June 5th, 2022), at least 19 press releases were announced by companies working in Mexico, with seven reporting resources and developments of their properties, four disclosing deals and corporate issues, two communicating production and financial results, two announcing financing issues, two commenting on Mexican issues, and two informing on exploration results. ON MEXICO ISSUES, Advance Lithium provided an update on the recent mining law changes. Prime Mining, Vizsla Silver and Zacatecas Silver reported the best drilling intercepts in Mexico on the first week of June, 2022. ON EXPLORATION, In Sonora, Benjamin Hill reported drill results from the El Fierro Zone at its Sonora Gold project, Sonora. In Coahuila, Monumental announced plans for follow-up exploration work at its Jemi Heavy Rare Earth project.  ON MINING, Santacruz reported Q1, 2022 production results from its Zimapan mine in Hidalgo. Minera Alamos reported Q1, 2022 financial results from its Santana project, Sonora. ON FINANCING, Reyna Silver announced a brokered private placement for gross proceeds of up to CAD $3M (Guigui and Batopilas projects, Chihuahua). Alamos Gold declared a quarterly dividend of USD $0.025 per common share (Mulatos mine, Sonora). ON RESOURCES AND DEVELOPMENT, Zacatecas Silver commenced its work plans to prepare a current resource estimate at its Esperanza project, Morelos. Discovery Silver reported positive metallurgical results and provided an update on its flagship Cordero project, Chihuahua. Prime reported additional phase 2 drill results from 12 step out drill holes at the Guadalupe East deposit within its Los Reyes project in Sinaloa. Magna Gold filed an independent technical report for its Margarita project, Chihuahua. Minera Alamos provided an update on the continuing progress at its Santana project in Sonora. Vizsla reported results from eighteen new holes drilled at the southern extension of the Napoleon Vein at its flagship Panuco project, Sinaloa.  Zacatecas Silver released results from the Panuco Norte drilling program at its Zacatecas project, Zacatecas. ON DEALS AND CORPORATE ISSUES, Azure entered into a binding sale agreement to sell its subsidiary companies that own and operate its Mexican assets to Bendito Resources for a combination of cash and shares valued at A $20M. Silverton entered into a share purchase agreement with Zapata to acquire the Margaritas property in Durango. Pantera Silver announced the appointment of a new member to its Board of Directors (Nuevo Taxco project, Guerrero). ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUES

Advance Lithium Corp., provided an update on the recent mining law changes that states that all the activities related to the exploration, exploitation and profit of lithium shall be the responsibility of the yet to be formed national lithium company. Advance has identified large zones of lithium, potassium and boron mineralization at their claims which are in good standing, with work completed and all legal filings in order. It should be noted that the analysis of the company’s deposits show that the composition of the mineralization is approximately equal parts lithium and potassium. While lithium is covered by this new legislation in Mexico, potassium is not. The potential of near term production of both lithium and potassium products puts the Company in a unique position with its salars/salt lakes deposits and looks forward to discussing the lithium opportunities with the newly formed Mexican national lithium company.

  • Prime Mining, Vizsla Silver and Zacatecas Silver reported the best drilling intercepts in Mexico on the first week of June, 2022. Details are shown in the table below:

ON EXPLORATION
·         Benjamin Hill Mining Corp., reported drill results from the El Fierro Zone at its Sonora Gold project, Sonora. This drill program explored for the presence and continuity of metallic mineralization found in outcroppings at surface, in epithermal veins, skarn zones and hydrothermal breccias, as well as for possible magmatic source of mineralization as indicated by chargeability highs. Drilling highlights include hole SGB-22-23 with 0.25% Cu over 1.25m; hole SGB-22-24 with 0.67% Cu over 1.25m; hole SGB-22-26 with 0.39 g/t Au over 0.95m, plus 0.26% Cu over 1.45m; and hole SFB-22-21 with 3.54% Cu over 3m, including 10% Cu, 2.11 g/t Au and 52 g/t Ag over 0.6m.
·         Monumental Minerals Corp., announced plans for follow-up exploration work at its Jemi Heavy Rare Earth project. The follow-up work program will be divided in two phases. The first phase will consists of detailed geological mapping and collection of structural data, along with a ground radiometric survey to identify drill targets. The second phase will consists of a stream sediment geochemical survey to assess areas within and beyond the 8km2 area of highest priority.
ON MINING
·         Santacruz Silver Mining Ltd., reported Q1, 2022 production results from its Zimapan mine in Hidalgo. The company processed 191,413 tonnes to produce 901.2K Oz AgEq. It sold 872.7K Oz AgEq and reported cash and All Included Sustaining Costs (AISC) of USD $17.04 and USD $23.38 per Oz AgEq sold respectively.
·         Minera Alamos Inc., announced Q1, 2022 financial results from its Santana project, Sonora. The company reported revenues of CAD $5.16M from approximately 65% of its gold production (the remaining gold was sold post quarter end); income from operation of CAD $1.53M; a net income of CAD $1.06M; and cash and cash equivalents of CAD $8,17M.
ON FINANCING
·         Reyna Silver Corp., announced a brokered private placement with Red Cloud Securities Inc. (the “Agent”), for gross proceeds of up to CAD $3M. The Agent will have an option, exercisable in full or in part up to 48 hours prior to the closing of the Offering, to sell up to an additional 2,777,778 Units at the Offering Price for additional gross proceeds of up to CAD $M. The company plans to use part of the gross proceeds to explore their Guigui and Batopilas projects in Chihuahua.
·         Alamos Gold Inc., declared a quarterly dividend of USD $0.025 per common share. The Company has paid dividends for 13 consecutive years during which time USD $264M has been returned to shareholders through dividends and share buybacks, including USD $27M thus far in 2022. This includes 1M shares repurchased under the normal course issuer bid in May 2022 at a cost of USD $7.4M, or USD $7.42 per share. The dividend is payable on June 30, 2022 to shareholders of record as of the close of business on June 16, 2022 (Mulatos mine, Sonora).
ON RESOURCES AND DEVELOPMENT
·         Zacatecas Silver Corp., commenced its work plans to prepare a current resource estimate at its Esperanza project, Morelos. The Esperanza project has a historical resource estimate of a measured and indicated resource of 34,352,000 tonnes of 0.98 g/t Au and 8 g/t Ag for 1.08M Oz Au and 8.9M Oz Ag and an inferred resource of 718,000 tonnes of 0.80 g/t Au and 15 g/t Ag for 18.4K Oz Au and 347.2K Oz Ag. Measured and indicated resources are 1.22M Oz AuEq of 1.11 g/t AuEq. Immediate steps to confirm resource estimate include: Extensive verification through sampling at least 10% of the historical drill core and new metallurgical test work by SGS Minerals. Additionally, the company is to commence work to identify and prioritize expansion and exploration targets throughout the project.
·         Discovery Silver Corp., reported positive metallurgical results and provided an update on its flagship Cordero project, Chihuahua. Initial results from the metallurgical testwork showed recoveries typically ranging from 90-95% for Ag, Pb, and Zn from very coarse grind size and with lower reagent consumption than what was assumed earlier. The company also announced the project study team for the Pre-Feasibility Study on Cordero project, in which plans to release an updated resource estimate in Q4, 2022. The updated resource estimate will be based on a total of 283,000m in 683 drill holes.
·         Prime Mining Corp., reported additional phase 2 drill results from 12 step out drill holes at the Guadalupe East deposit within its Los Reyes project in Sinaloa. Highlights drill intercepts include hole 22GE-53 with 9.67 g/t Au and 314 g/t Ag over a true width (TW) of 0.80m, plus 3.01 g/t Au and 220 g/t Ag over a TW of 0.90m, plus 13.65 g/t Au and 311 g/t Ag over a TW of 1.50m, plus 61.99 g/t Au and 978 g/t Ag over a TW of 3.10m, including 200 g/t Au and 2,830 g/t Ag over a TW of 0.90m, plus 5.90 g/t Au and 341 g/t Ag over a TW of 0.60m; hole 22GE-48 with 2.93 g/t Au and 62 g/t Ag over a TW of 3.90m, including 4.41 g/t Au and 105 g/t Ag over a TW of 2m, plus 1.16 g/t Au and 79 g/t Ag over a TW of 2.40m, plus 1.78 g/t Au and 82 g/t Ag over a TW of 0.50m, plus 4.29 g/t Au and 125 g/t Ag over a TW of 1.40m, plus 1.62 g/t Au and 120 g/t Ag over a TW of 1.1m, plus 1.24 g/t Au and 88 g/t Ag over a TW of 1.10m, plus 3.19 g/t Au and 34 g/t Ag over a TW of 1.10m, plus  2.31 g/t Au and 98 g/t Ag over a TW of 1.40m, including 3.68 g/t Au and 161 g/t Ag over a TW of 0.80m; hole 22GE-45 with 12.79 g/t Au and 300 g/t Ag over a TW of 2.50m, including 16.96 g/t Au and 392 g/t Ag over a TW of 1.80m; hole 22GE-51 with 3.01 g/t Au and 161 g/t Ag over a TW of 0.60m; and hole 22GE-46 with 1.95 g/t Au and 155 g/t Ag over a TW of 2.30m, including 3.11 g/t Au and 249 g/t Ag over a TW of 1.30m.
·         Magna Gold Corp., filed an independent technical report for its Margarita project, Chihuahua, dated May 24, 2022, with an effective date of April 8, 2022. The technical report contains an initial mineral resource estimate.
·         Minera Alamos Inc., provided an update on the continuing progress at its Santana project in Sonora. The company announced that the development of the Nicho Main Zone is now underway with haulage and access road largely completed. First mineralized material should be stacked on the Santana leach pad as operation move into the second half of the year. At Nicho Norte, the gold mined and stacked on the leach pad to date total approximately 18K Oz with roughly 7K Oz recovered in concentrate.
·         Vizsla Silver Corp., reported results from eighteen new holes drilled at the southern extension of the Napoleon Vein at its flagship Panuco project, Sinaloa. Drilling highlights include hole NP-22-258 with 1,139 g/t Ag, 11.48 g/t Au, 0.3% Pb, and 0.8% Zn (2,098 g/t AgEq) over a true width (TW) of 4.30m; hole NP-22-271 with 223 g/t Ag, 2.76 g/t Au, 1.5% Pb, and 5% Zn (677 g/t AgEq) over a TW of 7m, including 789 g/t Ag, 18.5 g/t Au, 5.7% Pb, and 11.7% Zn (2,871 g/t AgEq) over a TW of 0.46m, including 343 g/t Ag, 5.11 g/t Au, 1.7% Pb, and 2.9% Zn (909 g/t AgEq) over a TW of 0.61m, including 403 g/t Ag, 5.04 g/t Au, 1% Pb, and 4% Zn (985 g/t AgEq) over a TW of 0.91m, including 191 g/t Ag, 1.12 g/t Au, 2.9% Pb, and 10.9% Zn (774 g/t AgEq) over a TW of 0.99m; hole NP-22-277 with 151 g/t Ag, 2.63 g/t Au, 0.2% Pb, and 0.5% Zn (389 g/t AgEq) over a TW of 7m, including 315 g/t Ag, 2.32 g/t Au, 0.3% Pb, and 0.4% Zn (524 g/t AgEq) over a TW of 0.5m. including 630 g/t Ag, 4.94 g/t Au, 0.4% Pb, and 0.5% Zn (1,055 g/t AgEq) over a TW of 0.75m, including 189 g/t Ag, 2.7 g/t Au, 0.8% Pb, and 1.8% Zn (495 g/t AgEq) over a TW of 0.79m; and hole NP-22-281 with 202 g/t Ag, 1.55 g/t Au, 0.7% Pb, and 1.1% Zn (387 g/t AgEq) over a TW of 5.4m, including 1,275 g/t Ag, 6.25 g/t Au, 3.5% Pb, and 4% Zn (2,2027 g/t AgEq) over a TW of 0.34m, including 398 g/t Ag, 3.75 g/t Au, 1.9% Pb, and 2.7% Zn (855 g/t AgEq) over a TW of 0.84m, including 386 g/t Ag, 3.09 g/t Au, 1.8% Pb, and 2.5% Zn (779 g/t AgEq) over a TW of 0.59m. These results are part of the ongoing 12,000m resource/discovery-based drill program.
·         Zacatecas Silver Corp., released results from the Panuco Norte drilling program at its Zacatecas project, Zacatecas. Drilling highlights include hole PAN2022-057 with 224 g/t Ag and 0.15 g/t Au (224 g/t AgEq) over 1.83m; hole PAN2022-56 with 151 g/t Ag and 0.16 g/t Au (163 g/t AgEq) over 3.71m; and hole PAN2022-61 with 231 g/t Ag and 0.22 g/t Au (248 g(/t AgEq) over 1.28m. The Company has now completed 63 drill holes at Panuco North for a total of 7,240 meters. “Drilling in the eastern and central part of the Panuco North Vein has now intercepted near-surface mineralization over a strike length of 700 m, with the vein remaining open along strike and open at depth. Assay results from 22 Panuco North holes are pending”.
ON DEALS AND CORPORATE ISSUES
·         Azure Minerals Limited entered into a binding sale agreement to sell its subsidiary companies that own and operate its Mexican assets to Bendito Resources for a combination of cash and shares valued at A $20M, consisting of A $10M cash and A $10M shares in Bendito. The portfolio consists of eight properties, but Alacrán, Oposura, and Promontorio projects will form the core assets of Bendito, all located within the Laramide Copper Province in N-NW Mexico. Alacrán, in Sonora State, hosts the high-grade Mesa de Plata silver deposit and adjacent Loma Bonita gold-silver deposit which together contain 32 M Oz Ag and 150K Oz Au in JORC Mineral Resources. A Scoping Study / Preliminary Economic Assessment on Oposura, in Sonora State,showed robust results for a high-quality, high-grade massive sulphide Zn-Pg-Ag development opportunity. The project holds significant exploration upside for resource expansion. At Promontorio, Chihuahua, Azure established a high-grade, near-surface Cu-Au-Ag resource and identified prospectivity for an underlying copper porphyry system.
·         Silverton Metals Corp., entered into a share purchase agreement with Zapata Exploration Ltd., to acquire the Margaritas property in Durango by acquiring all of the issued and outstanding shares of Zapata´s Mexican subsidiary, Impulsora de Proyectos Mineros S.A. de C.V. The Margaritas property comprises two mining concessions totalling 500 hectares, and consists of a 3.5km long and 240m of vertical extension of an under-explored, high-grade epithermal vein system hosted in productive volcanic rocks of the Sierra Madre Occidental. This vein system has returned grades up to 73.7 g/t Au in dump samples and 31.6 g/t Au in rock chip channel samples with grades between 1-38 g/t Ag. To acquire all of the issued and outstanding shares of Impulsora, Silverton has agreed to issue 750K common shares and grant a net smelter return royalty of 0.5%, which may be repurchased at a price of USD $250K.
·         Pantera Silver Corp., announced the appointment of a new member to its Board of Directors. In addition, the Board of Directors of the Company has authorized the granting of incentive stock options under its Stock Option Plan to purchase 300K common shares of the Company at an exercise price of CAD $0.20 per share for a five-year term expiring June 1, 2027. The stock options are being granted to certain directors and advisors of the Company (Nuevo Taxco project, Guerrero).
ON SOCIAL RESPONSIBILITY
·         No relevant news.

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, Cu silicates (chrysocolla) in a Carbonate Replacement Deposit in Durango, Mexico.  Photo by Miguel A Heredia.

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