The Mining and Exploration News in Mexico: Highlights on the First Week of November, 2023

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Fault plane showing slickensides

By Miguel A Heredia

During the 44th week of the year (October 30th to November 5th, 2023), at least 26 press releases were announced by companies working in Mexico, and 1 news published by the media, with nine reporting resources and developments of their properties, five disclosing deals and corporate issues, four communicating production results, three, announcing financing issues, three informing on exploration results, two commenting on Mexican issues, and one discussing social issues. ON MEXICO ISSUES, The Tax Administration Service (SAT) has collected MXP $65,981M (about USD $3,665M) in this six-year term from the mining companies. Regency Silver reported their best drilling intercepts in Mexico on the first week of November, 2023. ON EXPLORATION, In Sonora, Aztec commenced a RC drilling program at its Cervantes project. In Chihuahua, Kingsmen reported results from its ongoing surface sampling program in the southeast part of the Las Coloradas project. Durango, Silver Wolf received the exploration diamond drilling permit for its Ana Maria project. ON MINING, Americas Gold and Silver reported Q3, 2023 production results from its Cosala Mine Complex, Sinaloa. Avino announced that it will be reporting Q3, 2023 production and financial results from its Avino Mine, Durango on November 8, 2023. Sierra Metals also notified that it will be presenting Q3, 2023 results from its Bolivar Mine in Chihuahua on November 13, 2023. First Majestic reported Q3, 2023 production and financial results from their Mexican operations. ON FINANCING Minera Alamos signed definitive documentation for its Cerro de Oro construction financing package for up to USD $25M. Silver Bull announced non-brokered private placement for gross proceeds of CAD $1,285,350 (Sierra Mojada project, Coahuila). First Majestic declared a cash dividend payment in the amount of $0.0046 per common share for the third quarter of 2023.Minaurum closed a non-brokered private placement for gross proceeds of CAD $800,250 (Alamos Silver project, Sonora). ON RESOURCES AND DEVELOPMENT, Atacama Copper and TCP1 announced a maiden resource estimate for theirs Cristina and Yécora projects located in Chihuahua and Sonora respectively. Torex provided a Q3, 2023 update on its Media Luna project, Guerrero. Silver Tiger filed a technical report to announce an updated mineral resource estimate at its El Tigre project, Sonora.  Silver Tiger announced a Preliminary Economic Assessment (PEA) on its El Tigre project, Sonora. Golden Tag released first results from its drill program at its La Parrilla Mine, Durango. Regency Silver announced results from hole REG-23-21 collared at its Dios Padre project, Sonora. Sierra Madre presented its first project-wide resource estimate for its La Guitarra Mine, State of Mexico. Guanajuato Silver filed a National Instrument 43-101 Technical Report for a new Mineral Resource Estimate (MRE) for its San Ignacio Mine, Guanajuato. ON DEALS AND CORPORATE ISSUES, Fortuna Silver reported that the Mexican Federal Administrative Court has ruled in favour of Minera Cuzcatlan, Fortuna’s Mexican subsidiary, and re-instated the 12-year environmental impact authorization (EIA) for the San Jose Mine, Oaxaca. Monumental Minerals announced the resignation of its CEO, effective October 30, 2023 (Jemi rare Earth Element project, Coahuila).  Golden Tag announced name change to Silver Storm Mining Ltd, being approved later on by shareholders, its Board of Directors and the Toronto Stock Exchange (TSX) (La Parrilla Mine, Durango).  Sonoran Desert filed documents with the TSX seeking approval for consolidation of common shares (Cuatro Hermanos project, Sonora).  ON SOCIAL RESPONSIBILITY, Fernando Alanís, general director of Baluarte Minero, a unit within Industrias Peñoles, the world’s largest producer of refined silver, stated that the investment funds prioritize the ESG criteria of mining companies, because their implementation creates certainty.

ON MEXICO ISSUE

  • The Tax Administration Service (SAT) has collected MXP $65,981M (about USD $3,665M) in this six-year term from the mining companies. It is 11 times more than with the former government. The Tax Administration Service has explained that the MXP $65,981M is the result of the 2023 Master Plan and 307 audits completed.
  • Regency Silver Corp., reported their best drilling intercepts in Mexico on the first week of November, 2023. Details are shown in the table below:

ON EXPLORATION

  • Aztec Minerals Corp., commenced a RC drilling program at its Cervantes project in Sonora. “The drill program has been optimized to focus on expanding the California zone oxide mineralization, which remains open laterally in every direction, with a minimum 11 holes and 1,600m RC drilling in this current stage of exploration”.
  • Kingsmen Resources Ltd., reported results from its ongoing surface sampling program of old workings along the Soledad and Soledad II structures and their subsidiary structures in the southeast part of the Las Coloradas project, in Chihuahua. Twenty samples were collected with one returning > 400 g/t Ag; one returning > 300 g/t Ag; one returning >200 g/t Ag; and one returning > 100 g/t Ag. Three areas with high grade have been identified. Prospecting and sampling continues.
  • Silver Wolf Exploration Ltd., received from the Secretariat of Environment and Natural Resources (SEMARNAT), the exploration diamond drilling permit for the southern El Soldado claim at its Ana Maria project, Durango. The company has designed a drilling program for up to 4,800m over 16 holes.

ON MINING

  • Americas Gold and Silver Corporation reported Q3, 2023 production results from its Cosala Mine Complex, Sinaloa. The company produced 178K Oz Ag, 2.8M Lb Pb, and 9M Lb Zn.
  • Avino Silver and Gold Mines Ltd., announced that it will be reporting Q3, 2023 production and financial results from its Avino Mine, Durango on November 8, 2023.
  • Sierra Metals Inc., also notified that it will be presenting Q3, 2023 results from its Bolivar Mine in Chihuahua on November 13, 2023.
  • First Majestic Silver Corp., reported Q3, 2023 production and financial results from their Mexican operations. Table below shows results by mine:

ON FINANCING

  • Minera Alamos Inc., signed definitive documentation for its Cerro de Oro construction financing package for up to USD $25M with Auramet International Inc., and Auramet Capital Partners LP  which is comprised of a loan facility for up to USD $15M and a USD $10M royalty. Upon execution of the Cerro de Oro Financing Documents, the company also completed a drawdown of an initial USD $5M under the loan facility to advance certain pre-construction work related to the Cerro de Oro project, Zacatecas.
  • Silver Bull Resources Inc., announced non-brokered private placement issuing a fully subscribed 11,685,000 units at a price of CADS $0.11 per unit for gross proceeds of CAD $1,285,350. Gross proceeds will be used for general working capital and corporate purposes, including investigation and potential acquisition of additional exploration projects (Sierra Mojada project, Coahuila).
  • First Majestic Silver Corp., declared a cash dividend payment in the amount of $0.0046 per common share for the third quarter of 2023. The third quarter cash dividend will be paid to holders of record of First Majestic’s common shares as of the close of business on November 15, 2023, and will be distributed on or about November 30, 2023.
  • Minaurum Gold Inc., closed a non-brokered private placement for gross proceeds of CAD $800,250. The company will use the net proceeds for exploration of the Alamos Silver project, Sonora, and for general working capital purposes.

ON RESOURCES AND DEVELOPMENT

  • Atacama Copper Corporation and TCP1 Corporation announced a maiden resource estimate for theirs Cristina and Yécora projects located in Chihuahua and Sonora respectively. At Cristina project, Chihuahua, the companies estimated indicated resources of 17.5M tonnes of 0.51g/t Au, 34 g/t Ag, 0.5% Zn, 0.2% Pb, and 0.04% Cu (1.33 g/t AuEq) for a contained 752K Oz AuEq, and Inferred resources of 19M tonnes of 0.51 g/t Au, 27 g(/t Ag, 0.5% Zn, 0.2% Pb, and 0.05% Cu (1.27 g/t AuEq) for a contained 777K Oz AuEq.  The resource estimate is based on 220 diamond drill holes completed between 2010 and 2022 for approximately 70,000 m of drilling in total. Preliminary metallurgical test work suggests recoveries into concentrate of 75-85% for gold, 85-95% for silver, 80-90% for zinc and lead, and 70-80% for Cu. At Yécora project, Sonora, the companies estimated indicated resources of 25M tonnes of 0.30% Cu, 28 g/t Ag, and 749ppm Mo (0.79% CuEq9 for a contained 444M Lb CuEq, and inferred resources of 11.2M tonnes of 0.30% Cu, 24 g/t Ag, and 831 ppm Mo (0.78% CuEq for a contained 193M Lb CuEq. The resource estimate is based on 34 diamond drill holes and 8 reverse circulation drill holes completed between 2014 and 2022 for 14,006 m of drilling in total. Preliminary metallurgical test work projected a copper concentrate grade of 20-25% with a recovery of approximately 90% and containing 75 to 85% of the silver. The molybdenum concentrate grade was projected to be 50-55% with a recovery of 80 to 90%. Future testing will determine the feasibility of recovering lead and zinc to a separate concentrate, and thus zinc and lead were not included in the current resource estimate.
  • Torex Gold Resources Inc., provided a Q3, 2023 update on its Media Luna project, Guerrero. “Development of Media Luna continues to track well to plan, with first concentrate production remaining on track for late 2024 and commercial production in early 2025. At quarter-end, the Media Luna Project was 49% complete across engineering, procurement, underground development/construction, and surface construction. With 68% of upfront expenditures committed (including 42% incurred), expenditures to date have tracked reasonably well to the initial budget of $875 million, noting the stronger Mexican peso remains a headwind to manage. With $242 million incurred on the project year-to-date, project spending in 2023 is tracking toward the lower end of the annual guided range of $390 million to $440 million. Solid progress was made with respect to underground development and construction, which included another notable quarter of advance in the schedule-critical Guajes Tunnel and mobilization of the underground construction contractor. Breakthrough of the Guajes Tunnel is expected by year-end, three months ahead of schedule.  Significant progress was also made on the engineering front, which is expected to drive increased procurement activity through year-end. Surface construction continued with pad and foundation preparation for several key areas advanced during the quarter. The pace of construction is set to pick up in Q4 as concrete works ramp up, larger equipment deliveries to the south side commence with the completion of the Mazapa bypass road, and steel erection at the flotation plant begins before year-end.  The Media Luna Project is now soundly at the halfway mark and tracking to schedule and budget. With solid ongoing cash flow from El Limón Guajes and a healthy balance sheet with strong liquidity, we remain well positioned to execute on the remainder of the development plan over the next 15 months.”
  • Silver Tiger Metals Inc., filed a technical report to announce an updated mineral resource estimate (MRE) at its El Tigre project, Sonora. Table below shows the updated MRE for El Tigre project, Sonora:

In addition to the exploration work completed at El Tigre project, an exploration target was established as follows: 7 to 9M tonnes at 3.0 to 3.5 g/t AuEq for 675K Oz to 1M Oz AuEq.

  • Silver Tiger Metals Inc., announced a Preliminary Economic Assessment (PEA) on its El Tigre project, Sonora. Highlights of the PEA, with a base case silver price of $23.75/Oz and gold price of $1,850/Oz include an after-tax net present value (NPV) (using a discount rate of 5%) of  USD $287M with an after-tax IRR of 55.8% and payback period of 1.7 years (base case); 13-year mine life recovering a total of 60M payable AgEq or 776K Oz AuEq, consisting of 16M Oz Ag and 571K Oz Au; total project undiscounted after tax cash flow of USD $445M; initial capital costs of USD $59M, including USD $7.7M in contingency costs, over an expected 12-month build, expansion capital of USD $33M and sustaining capital costs of USD $31M over the life of mine (LOM); average LOM operating cash costs of USD $803/Oz AuEq, and all in sustaining costs (AISC) of USD $843/Oz AuEq or average LOM operating cash costs of USD $10/Oz AgEq, and AISC of USD $11/Oz AgEq; and average annual production of approximately 4.6MOz AgEq or 59,000 Oz AuEq.
  • Golden Tag Resources Ltd., released first results from its diamond drilling program at its La Parrilla Mine, Durango. Drilling highlights include hole Q-23-001 with 65 g/t Ag, 0.16 g/t Au, 1.3% Pb, 3.5% Zn, and 0.05% Cu (206 g/t AgEq) over 5.20m, including 145 g/t Ag, 0.11 g/t Au, 2.4% Pb, 2.9% Zn, and 0.08% Cu (299 g/t AgEq) over 1.64m, including 51 g/t Ag, 0.39 g/t Au, 1.4% Pb, 7.6% Zn, and 0.06% Cu (328 g/t AgEq) over 1.60m; hole Q-23-003 with 125 g/t Ag, 0.25 g/t Au, 3% Pb, 5.7% Zn, and 0.08% Cu (381 g/t AgEq) over 0.88m, plus 43 g/t Ag, 0.03g/t Au, 0.8% Pb, 8.6% Zn, and 0.18% Cu (300 g/t AgEq) over 0.32, plus 90 g/t Ag, 0.3 g/t Au, 0.7% Pb, 10.3% Zn, and 0.07% Cu (414 g/t AgEq) over 0.84m; and hole Q-23-005 with 124 g/t Ag, 0.61 g/t Au, 0.6% Pb, 0.3% Zn, and 0.27% Cu (198 g/t AgEq) over 1.87m, plus 76 g/t Ag, 0.32 g/t Au, 0.3% Pb, 4.2% Zn, and 0.18% Cu (225 g/t AgEq) over 1.52m, plus 29 g/t Ag, 0.08 g/t Au, 0.1% Pb, 4.9% Zn, and 0.11% Cu (172 g/t AgEq) over 0.97m. With these drill results Golden Tag extended the C460B Zone 110m at depth in La Parrilla Mine Complex, Durango.
  • Regency Silver Corp., announced results from hole REG-23-21 collared at its Dios Padre project, Sonora. It intersected 0.61 g/t Au over 9.5m, plus 5.34 g/t Au over 54.65m, including 7.36 g/t Au over 38m, including 8.7 g/t Au over 28.9m, and plus 0.95 g/t Au over 7.9m. “The 2023 drill campaign consisted of 6105.25m in 10 holes.  8 of the 9 holes targeting the lower Dios Padre breccia zone intersected mineralized pyrite-specularite breccia and confirm the mineralized breccia zone has a strike of at least 180m and depth extent of at least 150m while the breccia remains open both along strike, up-dip towards the old silver mine, and at depth”.
  • Sierra Madre Gold and Silver Ltd., presented its first project-wide resource estimate for its La Guitarra Mine, State of Mexico. The company reported indicated resource of 3,482,000 tonnes of 146 g/t Ag and 0.96 g/t Au (220 g/t AgEq) for a total of 18,073,000 Oz Ag and 118K Oz Au (27,207,000 Oz AgEq) contained and inferred resources of 4,105,000 tonnes of 113 g/t Ag and 0.52 g/t Au (153 g/t AgEq) for a total of 14,937,000 Oz Ag and 68,000 Oz Au (20,199,000 Oz AgEq) contained.
  • Guanajuato Silver Company Ltd., filed a National Instrument 43-101 Technical Report for a new Mineral Resource Estimate (MRE) for its San Ignacio Mine, Guanajuato. Table below shows the new MRE for San Ignacio Mine, Guanajuato (Effective date September 21, 2023):

ON DEALS AND CORPORATE ISSUES

  • Fortuna Silver Mines Ltd., reported that the Mexican Federal Administrative Court has ruled in favour of Minera Cuzcatlan, Fortuna’s Mexican subsidiary, and re-instated the 12-year environmental impact authorization (EIA) for the San Jose Mine, Oaxaca. “The San Jose Mine is in full compliance with all material environmental laws and continues to operate under the terms of the EIA. The decision of the Court is subject to appeal by the Secretaria de Medio Ambiente y Recursos Naturales (SEMARNAT), and if appealed, the permanent injunction that the company already has will remain in effect”.
  • Monumental Minerals Corp., announced the resignation of its CEO, effective October 30, 2023 (Jemi rare Earth Element project, Coahuila).
  • Golden Tag Resources Ltd., announced name change to Silver Storm Mining Ltd, being approved later on by shareholders, its Board of Directors and the Toronto Stock Exchange (TSX). the Company’s shares will commence trading on the TSXV, the OTCQB Exchange, and Frankfurt Stock Exchange under Silver Storm Mining Ltd. effective at the opening of trading on or about November 7,2023, and will trade on the TSXV under the new symbol (TSXV: SVRS) on the OTCQB under the symbol (OTCQB: SVRSF) and on the FSE under the symbol (FSE: SVR) (La Parrilla Mine, Durango).
  • Sonoran Desert Copper Corporation filed documents with the TSX seeking approval for consolidation of the outstanding common shares of the company, on the basis of one post-consolidation common share for every four pre-consolidation common shares. The common shares will continue trading on the TSX Venture Exchange on a post-consolidation basis under the name Sonoran Desert Copper Corporation and the trading symbol SDCU (Cuatro Hermanos project, Sonora).

ON SOCIAL RESPONSIBILITY

  • Fernando Alanís, general director of Baluarte Minero, a unit within Industrias Peñoles, the world’s largest producer of refined silver, stated that the investment funds prioritize the ESG criteria of mining companies, because their implementation creates certainty. He gave three examples of this: the payment of taxes, the accident rate and development in mining communities. More and more investors and financial institutions are using ESG or sustainability scores, ratings and benchmarking studies provided by various organizations that evaluate corporate performance and governance related to environmental and social issues, including climate change, when making their financing and voting decisions.

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 fault plane showing slickensides in an epithermal vein system in a prospect in Chihuahua, Mexico. Photo by Miguel A Heredia.

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