Garnetite (grossular garnet skarn)
By Miguel A Heredia
During the 12th week of the year (March 20th to March 26th, 2023), at least 17 press releases were announced by companies working in Mexico, and 1 news published by the media with eight reporting resources and developments of their properties, five disclosing deals and corporate issues, two communicating production and financial results, one commenting on Mexican Issues, one informing on exploration results, and one discussing social issues. ON MEXICO ISSUES, Torex, Vizsla, and Discovery Silver reported the best drilling intercepts in Mexico on the fourth week of March, 2023. ON EXPLORATION, In Zacatecas, Radius announced the discovery and acquisition of a new gold property within the Fresnillo mining district. ON MINING, Golden Minerals announced full year 2022 production and financial results. Impact reported full year 2022 production and financial results from its Zacualpan mining district in the State of Mexico. ON FINANCING, no relevant news. ON RESOURCES AND DEVELOPMENT, Golden Minerals presented results of an initial Mineral Resource Estimate prepared for its Yoquivo project in Chihuahua. Vizsla announced results from seven holes drilled at its flagship Panuco project in Sinaloa. Fortuna Silver reported updated Mineral Reserve and Mineral Resource Estimates for its San Jose Mine in Oaxaca. Discovery Silver announced results from the Feasibility Study (FS) drill holes on its flagship Cordero property in Chihuahua. Torex reported encouraging results from the 2022 drilling program at EPO deposit within its Media Luna property in Guerrero. GR Silver announced significant updated Mineral Resource Estimate for its Plomosas project in Sinaloa. Southern Silver updated the Mineral Resource Estimate on its Cerro Las Minitas project in Durango. ON DEALS AND CORPORATE ISSUES, Capitan Mining announced name change to Capitan Silver Corp. (Cruz de Plata project, Durango). Radius entered into an option agreement to acquire 100% of the 200 hectares Tropico property within the Fresnillo mining district in Zacatecas. Heliostar announced that it returned to trading on the TSX Venture exchange (Ana Paula, Guerrero). Sierra Madre announced that it received approval for the acquisition of the La Guitarra property in the State of Mexico. Pan American and Yamana provided an update on the status of Pan American´s proposed acquisition of all the issued and outstanding common shares of Yamana. ON SOCIAL RESPONSIBILITY, Industrias Peñoles and Fresnillo plc, implemented a responsible water management policy in order to reduce their footprint water.
ON MEXICO ISSUE
- Torex Gold Resources Inc., Vizsla Silver Corp., and Discovery Silver Corp., reported the best drilling intercepts in Mexico on the fourth week of March, 2023. Details are shown in the table below:
ON EXPLORATION
- Radius Gold Inc., announced the discovery and acquisition of a new gold property within the Fresnillo mining district in Zacatecas. El Tropico project is located 30km NW of Fresnillo city and consists of hot spring type sinter and breccia pipe. Radius identified an elliptical zone of intensely silicified hydrothermal breccias approximately 450m by 250m in a flat zone and hosted in finely bedded siltstone and dirty limestone interpreted to be part of the Proaño Group which host the major Fresnillo deposit. Twenty eight rock chip samples were collected on the property with encouraging results. Au assays ranged from 0.02 g/t to 0.88 g/t, with an average of 0.28 g/t; Hg values are very high with many samples exceeding >100 ppm (the upper limit of detection); Sb values are very anomalous and ranged from 64 ppm to 1,135 ppm; As values ranged from 8 ppm to 854 ppm; and Ag values ranged from 0.6 g/t to 5.6 g/t.
ON MINING
- Golden Minerals Company announced full year 2022 production and financial results from its Rodeo project in Durango. It produced 11,982 Oz Au and 32,179 Oz Ag at average realized sales prices of USD $1,805 and USDS $21.93 per Oz respectively. Total cash costs were USD $1,362 per payable Oz Au. Golden reported revenue of USD $23.3M; net operating margin of USD $5.7M; cash and equivalents balance as of December 31, 2022 of USD $4M; exploration expenses of USD $9.6M; and a net loss of USD 9.9M.
- Impact Silver Corp., reported full year 2022 production and financial results from its Zacualpan mining district in the State of Mexico. The company processed 152,862 tonnes at a direct production cost of USD $97.49 per ton, to produce 633K Oz Ag. Impact sold 644.8K Oz Ag, and reported revenues of USD $16.3M; mine operating earnings before amortization and depletion of USD $1.2M; cash flow loss of USD $1.8M; balance sheet of USD $15.3M in cash and working capital of USD $16.4M. The company has not long-term debt.
ON FINANCING
- No relevant news.
ON RESOURCES AND DEVELOPMENT
- Golden Minerals Company filed a NI 43-101 Technical Report for its Yoquivo project in Chihuahua in which presented results of an initial Mineral Resource Estimate (MRE). The Yoquivo MRE include inferred resources for 937K tonnes with average grades of 410 g/t Ag and 2.1 g/t Au (570 g/t AgEq) for a total of 12.3M Oz Ag and 64K Oz Au (17.23M Oz AgEq) contained. The resource was not initially classified beyond Inferred. The company believes that a significant portion will be updated to Measured & Indicated in the next resource update.
- Vizsla Silver Corp., announced results from seven holes drilled at its flagship Panuco project in Sinaloa. Drilling highlights (true widths reported) from the La Luisa Vein located 700m west of the Napoleon Vein include hole NP-22-332 with 2,699 g/t Ag, 24.99 g/t Au, 0.2% Pb, and 0.6% Zn (4,227 g/t AgEq) over 2.30m, including 11,502 g/t Ag, 120.5 g/t Au, 0.8% Pb, and 2.6% Zn (18,950 g/t AgEq) over 0.47m; hole NP-22-358 with 257 g/t Ag, 11.13 g/t Au, 0.4% Pb, and 2% Zn (1,076 g/t AgEq) over 5.6m, including 659 g/t Ag, 44.22 g/t Au, 0.5% Pb, and 2.3% Zn (3,698 g/t AgEq) over 1.1m, including 221 g/t Ag, 22.68 g/t Au, 0.3% Pb, and 0.5% Zn (1,761 g/t AgEq) over 0.27m, plus 174 g/t Ag, 0.77 g/t Au, 0.4% Pb, and 0.5% Zn (243 g/t AgEq) over 1.16m, plus 226 g/t Ag, 1.45 g/t Au, 1.2% Pb, and 8% Zn (633 g/t AgEq) over 1.27m; and hole NP-22-345 with 1,286 g/t Ag, 9.76 g/t Au, 0.9% Pb, and 2.3% Zn (1,967 g/t AgEq) over 2.5m, including 2,982 g/t Ag, 24.01 g/t Au, 1.8% Pb, and 5% Zn (4,630 g/t AgEq) over 0.99m, plus 42 g/t Ag, 1.55 g/t Au, 0.5% Pb, and 2.1% Zn (237 g/t AgEq) over 1.48m, plus 42 g/t Ag, 4.05 g/t Au, 0.2% Pb, and 2.9% Zn (426 g/t AgEq) over 2.53 m, plus 65 g/t Ag, 2.21 g/t Au, 0.1% Pb, and 2.6% Zn (306 g/t AgEq) over 1.70m. These results expand the high-grade footprint at La Luisa by over approximately 150m down dip from previously reported drill holes.
- Fortuna Silver Mines Inc., reported updated Mineral Reserve and Mineral Resource Estimates as of December 31, 2022 for its San Jose Mine in Oaxaca. The company estimated Proven + Probable Reserves of 2.14M tonnes with grades of 172 g/t Ag and 1.16 g/t Au for a total of 11.8M Oz Ag and 80K Oz Au contained. It also reported Measured and Indicated Mineral Resources of 911K tonnes with grades of 109 g/t Ag and 0.72 g/t Au for a total of 3.2M Oz Ag and 21K Oz Au contained, and Inferred Resources of 2.52M tonnes with grades of 118 g/t Ag and 0.83 g/t Au for a total of 9.6M Oz Ag and 67K Oz Au contained. (Mineral Resources are exclusive of Mineral Reserves).
- Discovery Silver Corp., announced results from the Feasibility Study (FS) drill holes on its flagship Cordero property in Chihuahua. Drilling highlights include hole C22-677 located 185m within the resource pit in the South Corridor with 77 g/t Ag, 0.16 g/t Au, 0.7% Pb, and 1.3% Zn (158 g/t AgEq) over 31.7m, plus 124 g/t Ag, 0.09 g/t Au, 1.2% Pb, and 1.9% Zn (241 g/t AgEq) over 38.5m; hole C22-687, toward the bottom and beneath the reserves pit in an area previously modeled as waste with 14 g/t Ag, 0.09 g/t Au, 0.2% Pb, and 1.3% Zn (75 g/t AgEq) over 50.3m, plus 35 g/t Ag, 0.06 g/t Au, 0.7% Pb, and 1.7% Zn (126 g/t AgEq) over 35.5m, plus 25 g/t Ag, 0.06 g/t Au, 0.6% Pb, and 2.2% Zn (133 g/t AgEq) over 27.4m; and hole C22-671 located approximately 1.5km northeast of the reserves pit with 137 g/t Ag, 0.05 g/t Au, 3.1% Pb, and 3.5% Zn (370 g/t AgEq) over 14.8m, plus 55 g/t Ag, 0.04 g/t Au, 0.9% Pb, and 1.5% Zn (141 g/t AgEq) over 23.1m. The FS drilling consisted of 30 drill holes and was focused on two key areas: 1) expansion of reserves within and beneath the Pre-Feasibility Study open pit and 2) upgrading and expansion of the resource in the far northeast of the deposit. The drilling results will be incorporated in a FS in conjunction with a resource update planned for the first half of 2024.
- Torex Gold Resources Inc., reported encouraging results from the 2022 drilling program at EPO deposit within its Media Luna property in Guerrero. Drilling highlights include hole ML22-900D with 12.25 g/t Au, 72 g/t Ag, and 3.59% Cu (18.90 g/t AuEq) over 32.87m; hole ML22-924D with 5.32 g/t Au, 150 g/t Ag, and 5.77% Cu (16.38 g/t AuEq) over 17.23m, including 99.52 g/t Au, 91 g/t Ag, and 4.42% Cu (107.73 g/t AuEq) over 4.28m; hole ML22-886D with 4.93 g/t Au, 76 g/t Ag, and 3.11% Cu (10.83 g/t AuEq) over 35.05m; hole ML22-927 with 9.11 g/t Au, 11 g/t Ag, and 0.31% Cu (9.75 g/t AuEq) over 17.35m, plus 5.99 g/t Au, 21 g/t Ag, and 0.67% Cu (7.31 g/t AuEq) over 42.02m; hole ML22-926D with 1.35 g/t Au, 81 g/t Ag, and 3.86% Cu (8.54 g/t AuEq) over 32.1m; hole ML22-925D with 1.19 g/t Au, 46 g/t Ag, and 2.12% Cu (5.16 g/t AuEq) over 28.46m, plus 8.51 g/t Au, 137 g/t Ag, and 5.78% Cu (19.44 g/t AuEq) over 5.09m; hole ML22-909A with 1.71 g/t Au, 70 g/t Ag, and 2.88% Cu (7.17 g/t AuEq) over 14.78m, plus 2.1 g/t Au, 58 g/t Ag, and 2.82% Cu (7.33 g/t AuEq) over 18.34m; hole ML22-919D with 6.82 g/t Au, 35 g/t Ag, and 1.46% Cu (9.58 g/t AuEq) over 6.05m, plus 8.04 g/t Au, 11 g/t Ag, and 0.78% Cu (9.43 g/t AuEq) over 8.47m; hole ML22-815D with 8.58 g/t Au, 8 g/t Ag, and 0.41% Cu (9.33 g/t AuEq) over 14.71m; hole ML22-912D with 4.23 g/t Au, 8.21 g/t Ag, and 0.08% Cu (4.45 g/t AuEq) over 18.77m; and hole ML22-920A with 12.47 g/t Au, 16 g/t Ag, and 0.19% Cu (12.96 g/t AuEq) over 4.31m. The company informed that the drilling results were very encouraging and is expected to achieve the target of upgrading half of the current inferred resources to the indicated category. Torex is optimistic about the potential to further increase the size of EPO as the deposit remains open to the north, south, and west.
- GR Silver Mining Ltd., announced significant updated Mineral Resource Estimate for its Plomosas project in Sinaloa. The company reported that there was an increase of 108% in Indicated Resources from 46M Oz AgEq to 97M Oz AgEq; 72% increase in Indicated Resources from 32M Oz Ag to 55M Oz Ag; 61% increase in Inferred Resources from 33M Oz AgEq to 53M Oz AgEq; 20% increase in Inferred Resources from 18M Oz Ag to 22M Oz Ag; 44% increase in average Indicated Mineral Resource grade from 143 g/t Ag to 206 g/t AgEq; and 65% increase in average Inferred Mineral Resource grade from 112 g/t Ag to 115 g/t Ag. At San Marcial, there was an increase of 80% in Indicated Mineral Resources from 36M Oz AgEq to 65M Oz AgEq; and a 65% increase in Inferred Mineral Resources from 12M Oz AgEq to 20M Oz AgEq. GR Silver reported Indicated Mineral Resources of 9.7M tonnes at 209 g/t AgEq (148 g/t Ag), and Inferred Mineral Resources of 3M tonnes at 200 g/t AgEq (145 g/t Ag). 71% of the value of the San Marcial Resource Estimate is comprised of Ag, and 91% of the 65M Oz AgEq San Marcial Indicated Resources are potentially amenable to open pit extraction. At Plomosas, there was an increase of 137% in the Indicated Mineral Resource tonnage; 260% increase in the Indicated Mineral Resource from 9M Oz AgEq to31M Oz AgEq; Ag and AgEq grade increased by 30% and 52% respectively; 20% of the total Indicated Mineral Resource is comprised of Ag, and 26% of the total Inferred Mineral Resource is comprised of Ag. It means that 46% of the Resource Estimate at Plomosas mine area is comprised of precious metals.
- Southern Silver Exploration Corp., updated the Mineral Resource Estimate (MRE) on its Cerro Las Minitas project in Durango. The updated MRE significantly expanded sulphide resources in the La Bocona deposit. The newly modelled mineral resources represent an approximate 63% increase in the size of the La Bocona deposit (on an AgEq basis) and an overall 4.5% increase in the mineral resources of the entire project. The company reported Indicated Mineral Resources of 12.5M tonnes at grades of 106 g/t Ag, 0.07 g/t Au, 0.2% Cu, 1.3% Pb, and 3.3% Zn (349 g/t AgEq or 8.5% ZnEq) to contain 42.7M Oz Ag, 29K Oz Au, 46M Lb Cu, 364M Lb Pb, and 903M Lb Zn (140M Oz AgEq or 2,300M Lb ZnEq), and Inferred Mineral Resources of 21M tonnes at grades of 118 g/t Ag, 0.1 g/t Au, 0.2% Cu, 1.2% Pb, and 2.2% Zn (311 g/t AgEq or 7.6% ZnEq) to contain 80M Oz Ag, 85K Oz Au, 101M Lb Cu, 571M Lb Pb, and 1,029M Lb Zn to contain 210M Oz AgEq or 3,500M Lb ZnEq. “The new MRE incorporates results from 26 additional drill holes totalling 11,801.5m which tested the north-western extension the La Bocona deposit. Mineralization was also identified in several holes specifically along the northern margin of the central intrusion that were not incorporated into the new resource update and with further drilling, represent additional expansion opportunities”.
ON DEALS AND CORPORATE ISSUES
- Capitan Mining Inc., announced name change to Capitan Silver Corp. Capitan Silver will continue to trade under the same symbol ‘CAPT’ on the TSX Venture Exchange and the number of shares outstanding will not change (Cruz de Plata project, Durango).
- Radius Gold Inc., entered into an option agreement to acquire 100% of the 200 hectares Tropico property within the Fresnillo mining district in Zacatecas. Terms of the option include a payment on signing of USD $200K (completed); a further USD $200K payment which can be paid in 6 monthly installments over a period of 42 months, starting with USD $25K at month 12 from signing in order to maintain the property option. At month 48, Radius can acquire 100% of the property for USD $5M. An additional milestone payment of USD $5M is conditional on delivering a compliant feasibility study or at the start of mine construction. A further USD $3M to be paid if reserves exceed 2M Oz AuEq (Au + Ag ounces). If Radius does not complete payment of the milestone USD $5M within 8 years of signing, the property would return 100% to original owners.
- Heliostar Metals Limited announced that it returned to trading on the TSX Venture exchange. “The Company can now submit the required documentation to return to trade on the OTCQX and will provide an update once the timeline is clear” (Ana Paula, Guerrero).
- Sierra Madre Gold and Silver Ltd., announced that it received approval from the Federal Economic Competition Commission (COFECE), the Mexico´s antitrust agency for the acquisition of the La Guitarra property in the State of Mexico. With the receipt of this approval, closing of the acquisition is expected to take place on March 30,2023, followed by trade resumption of Sierra Madre shares shortly thereafter.
- Pan American Silver Corp., and Yamana Gold Inc., provided an update on the status of Pan American´s proposed acquisition of all the issued and outstanding common shares of Yamana. Both companies informed that the Mexican Federal Economic Competition Commission approved the Pan American arrangement with Yamana and Agnico Eagle Mines Limited. All required regulatory, shareholders and court approvals, including the finall court order, have now been received and the arrangement is anticipated to be completed on or about March 31, 2023.
ON SOCIAL RESPONSIBILITY
- Industriales Peñoles S.A.B. de C.V. and Fresnillo plc, implemented a responsible water management policy in order to reduce their footprint water. Both companies have proposed three guiding principles: resource efficiency, collaboration with other actors and transparency. Thus, Industrias Peñoles and Fresnillo plc reiterated their commitment to respect the human right to access to safe drinking water.
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 garnetite (grossular garnet skarn) in a prospect in Tamaulipas, Mexico. Photo by Miguel A Heredia.
