The Mining and Exploration News in Mexico: Highlights on the Fourth Week of November 2022

By Jorge Cirett

During the 47th week of the year (November 21st to November 27th, 2022), 14 companies working in Mexico released news on their properties. One company declared share dividends, one more the partial repayment of two loan facilities and one more the intention to settle a debt with shares. Four companies updated on work at its advanced properties. One company announced the agreement to pursue an option in another company’s property.  ON MEXICO ISSUES, the AIMMGM pointed that Mexico is a mining country, but that it has neglected to inform of the goods of the trade. Arcelor Mittal announced a significant investment at the Las Truchas iron mine in Michoacan. ON EXPLORATION, In Sonora, Radius Gold informed on work at Maricela. In Chihuahua, Radius Gold updated in work at Amalia and Plata Verde projects, with JV’s partners Pan American Silver and Fresnillo respectively. ON MINING, Discovery Silver, Impact Silver and Guanajuato Silver Company released Q3 2022 production and/or financial results. ON FINANCING, Alamos Gold declared a quarterly dividend per share. Guanajuato Silver Company announced the partial repayment of two loan facilities. Defiance Silver is to settle a $41.9 K debt through the issuance of shares. ON RESOURCES AND DEVELOPMENT, Discovery Silver released results from drilling at Cordero, in Chihuahua. GR Silver Mining informed on results from drilling at the SE zone of the San Marcial project in Sinaloa, with an impressive silver intercept of 185.5 m @ 111 gpt Ag. Defiance Silver resumed drilling at the Veta Grande vein system in Zacatecas. Azucar Minerals received results from drilling on the Lithocap target at the El Cobre project in Veracruz. ON DEALS AND CORPORATE ISSUES, Vizsla Silver entered into a LOI with Prismo Metals for a strategic investment and right of first refusal for the purchase of Prismo’s Palos Verdes project in Sinaloa.

ON MEXICO ISSUES

  • Andrés Robles Osollo, Vicepresident of government relations of the AIMMGM (Asociación de Ingenieros de Minas, Metalurgistas y Geólogos de México) pointed that México is a mining country, but that the industry has neglected the promotion of the craft and the importance of México on the World production of minerals. México is the leader in silver production, and is within the first ten producers of gold, copper, lead and zinc.
  • Arcelor Mittal announced the investment of 3,000 million pesos at Las Truchas mine in Michoacan, to increase the production rate from 1 M tonnes/year to 2.3 M tonnes/year. The company complained on the illegal blockage of the railroad line for three months in 2021 by a teachers Union, and said that they are working closely with the Michoacan government to keep the rails free of blockades.  

ON EXPLORATION

  • Radius Gold Inc. provided an update on the company’s exploration activities at the 10,250 ha Amalia project, in Chihuahua. The JV with Pan American Silver Corp. has completed 23,059 m of drilling in 67 holes on the California, Amalia and El Cuervo vein systems. Recent mapping and sampling extended the target for 1.5 km at California, and several parallel structures were identified. Pan American “has completed its right to earn an initial 65% interest in the Amalia Project by making cash payments to Radius totalling US$1.5 million (paid) and expending US$2 million on exploration over four years (completed). Pan American may earn an additional 10% by advancing the property to preliminary feasibility”.
  • Radius Gold Inc. informed on work at the Plata Verde project in Chihuahua. Fresnillo PLC has an agreement since mid-2022 to negotiate an option agreement to earn 70% interest in the project. Since then, Fresnillo has funded US$100 K on the signature of the agreement, paid US$65 in underlying property option payments, paid US$103 K in back taxes and invested US$35 K in the project. Fresnillo has to spend over a four-year period US$5 M in exploration and make option payments to Radius of US$3.1 M which includes US$1.1 M to cover underlying property payments. “Should either Party’s interest fall below 10% interest in NewCo that interest would convert to a 2% NSR”.
  • Radius Gold Inc. notified on exploration at its Maricela project in Sonora. The project is 20 km south from the Cananea copper mine, and only a few kilometers from the Loma de Plata silver deposit discovered a few years ago by Azure Minerals. Radius has “mapped and sampled an epithermal silver and gold mineralized vein system extending approximately 1.5km long by 300m wide, within which occurs multiple veins, stockworks and breccias. Vein intersections have exposed widths of up to 25 metres”. Highlighted chip sampling results comprise 3 m @ 4.46 gpt Au, 1,335 gpt Ag; 6 m @ 1.03 gpt Au, 418 gpt Ag; 25.3 m @ 0.31 gpt Au, 62 gpt Ag. Radius is awaiting final registration of the option agreement, as already counts with the drilling permit.

ON MINING

  • Discovery Silver Corp. released financial results for the third quarter 2022. Results from the PFS metallurgical testwork program at Cordero in Chihuahua highlighted recoveries in the 90-95% range for Ag, Pb and Zn. The phase II drilling program of close to 80,000 m of drilling in over 250 holes was completed during the quarter. Cash, cash equivalents and short-term investments stood at $55.5 M at the end of the period.
  • Impact Silver Corp. announced its financing and operating results for the Q3 2022. During the quarter 39.8 K tonnes were processed at the mill at an average grade of 165 gpt. In response to higher operational costs and lower metal prices, Impact initiated a first round of lay-offs and reduced its exploration spending. “The cash position remains strong at $16.5 million with working capital of $17.6 million”.
  • Guanajuato Silver Company Ltd. provided consolidated production results for the Q3 2022. The consolidated production from the El Cubo Mines Complex in Guanajuato, San Ignacio in Guanajuato and Topia in Durango during the quarter comprised 107.4 K tonnes mined, 107 K tonnes milled at a rate of 1,274 tonnes per day, recovering 88.5% Ag, 86.3% Au, to produce 329.3 K Oz Ag, 3,226 Oz Au, 537.6 K Lb Pb, 677.1 K Lb Zn (700.3 K Oz AgEq).

ON FINANCING

  • Alamos Gold Inc. declared a quarterly dividend of US$0.025 per common share. “The Company has paid dividends for 13 consecutive years during which time $285 million has been returned to shareholders through dividends and share buybacks, including $48 million thus far in 2022” (Mulatos, Sonora).
  • Guanajuato Silver Company Ltd. announced the partial repayment of the two loan/pre-payment facilities with Swiss-based precious metal trading firm OICM Precious Metals S A. “Guanajuato Silver has delivered an aggregate of 96,518 ounces of silver and 846 ounces of gold representing five months’ deliveries of silver and gold ounces to OCIM thereby reducing the total number of monthly delivery payments remaining to OCIM under both facilities to ten” (El Cubo, Guanajuato).
  • Defiance Silver Corp. intends to settle $41.9 K of debt through the issuance of common shares of the company (San Acacio, Zacatecas).

ON RESOURCES AND DEVELOPMENT

  • Discovery Silver Corp. announced results from 15 drill holes of upgrade and expansion drilling of the proposed open pit, subsequent to the cut-off date for the pre-feasibility study (PFS) on its Cordero project in Chihuahua. Highlighted core length intervals comprise 77 m @ 46 gpt Ag, 0.08 gpt Au, 0.7% Pb, 1.4% Zn; 22 m @ 83 gpt Ag, 0.10 gpt Au, 1.8% Pb, 3.2% Zn; 96 m @ 33 gpt Ag, 0.03 gpt Au, 0.7% Pb, 1.8% Zn (including 36 m @ 44 gpt Ag, 0.04 gpt Au, 0.9% Pb, 3.1% Zn); 43 m @ 62 gpt Ag, 0.11 gpt Au, 1.4% Pb, 1.7% Zn; 52 m @49 gpt Ag, 0.07 gpt Au, 0.8% Pb, 1.7% Zn. “The Company has now completed approximately 17,000 m (52 holes) as part of its Feasibility Study drill program”. Total meters drilled in the project now is over 293,000 m in 735 holes.
  • GR Silver Mining Ltd. released surface drilling results from four holes on the Southeast Area of the San Marcial project in Sinaloa. Highlighted core length results comprise 14.1 m @ 186 gpt Ag (including 0.2 m @ 6,405 gpt Ag, 10.1% Pb, 17.9% Zn); 73.5 m @ 72 gpt Ag (including 1.1 m @ 905 gpt Ag and 0.8 m @ 1,039 gpt Ag); 185.5 m @ 111 gpt Ag (including 83.2 m @ 215 gpt Ag); 1.0 m @ 31.3 gpt Au. “The Company expects to complete three more drill holes in the SE Area prior to the December cut-off date for data to be incorporated into the 3D geological model, with the updated resource estimation expected to be released in Q1|2023”.
  • Defiance Silver Corp. resumed drilling at the Veta Grande vein system at the Zacatecas project in Zacatecas. “The approximate 4000m program is an extension of the previous phases of drilling, all of which returned high grades down plunge and outside of the current resource estimate”. Drilling is to focus on the recently discovered deep historic working to the East, down plunge of high-grade results below the current resource estimate, the footwall vein north of the main Veta Grande structure and the cross structures and vein splays with mineralization potential.
  • Azucar Minerals Ltd. received and compiled results from two holes completed at the Lithocap target at its El Cobre project in Veracruz. “Large intervals of brecciated rock were intersected possibly reflecting a diatreme like body that may have disrupted any earlier porphyry alteration zonation in this area”. No significant intervals of porphyry mineralization were intersected, with the most relevant result being a late sulfide vein which returned 0.7 m @ 0.95% Cu, 0.42 gpt Au.

ON DEALS AND CORPORATE ISSUES

  • Vizsla Silver Corp. entered into a non-binding letter of intent (LOI) with Prismo Metals Inc. to make a strategic investment with right for first refusal to Purchase the Palos Verdes property, adjacent to Vizsla’s Panuco project in Sinaloa, and 4 M shares of Prismo for C$2 M. “The consideration for the Strategic Investment will consist of a cash payment of C$500,000 at closing and 1,000,000 common shares of Vizsla”. After completion of the deal VIZSLA will own 12% of Prismo shares on a basic basis and 17% on a partially diluted basis.

ON SOCIAL RESPONSIBILITY

  • Vizsla Silver Corp. exceeded one million consecutive work hours without a lost time incident at its Panuco project in Sinaloa.
  • Discovery Silver Corp. released its environmental, social and governance report (ESG) “and subsequent to quarter end received its official ESR Distinction, which is issued by the Mexican Center for Philanthropy to organizations that have demonstrated they operate in a socially and environmentally responsible manner, and its Great Place to Work Certification, which recognizes companies that create an outstanding employee experience through building a workplace culture of trust, credibility, respect, pride and collaboration” (Cordero project, Chihuahua).
  • Torex Gold Resources Inc. released its inaugural Climate Change Report with emphasis in carbon emission reduction, and confirmed having received the permitting from SEMARNAT (Environmental regulator) for construction of an 8.7 megawatt solar plant on its mining concessions and the awarding of a contract for battery electric vehicle scoop fleet at its Media Luna project in Guerrero.

On the image below puzzling boudin like siliceous bands in limestone on a project in the Sonoran Desert. Picture by Jorge Cirett.

Mexico’s Best Drilling Intercepts on the Fourth Week of November 2022

Only three companies released drilling results during the 47th week of the year, and one of these did not have high grade intercepts. The low to intermediate sulfidation San Marcial system in Sinaloa, owned by GR Silver, and parte of its greater Plomosas property had some good gold intercepts, but silver results got the lime lights with its impressive intercept of 185.50 m @ 111 gpt silver. Discovery Silver’s Cordero project in Chihuahua returned good intercepts in silver, lead and especially in zinc. Cordero shows high grade intermediate sulfidation epithermal veins, Ag-Pb-Zn mineralization related to the intrusion of felsic laccoliths, dikes and sills into a calcareous sedimentary sequence, with skarn and carbonate replacement mineralization dominating parts of the deposit. A very broad classification would put Cordero as polymetallic intrusive related mineralization.

Mexico’s Best Drilling Intercepts on the Third Week of November 2022

This week’s outliers were the intercepts released by Alamos Gold on the Puerto del Aire deposit in the Mulatos project in Sonora. Especially the almost 13 meters averaging over an ounce of gold per tonne, which comes to a whopping 412.4 gpt*m. These results remark the high grades that some zones of high sulfidation deposits can attain in Mexico. Aztec Minerals released good gold assays from its Cervantes project, also in Sonora, a gold-copper porphyry intruding Paleozoic sedimentary rocks.

The rest of intervals high in gold, silver, lead and zinc come from the structurally controlled low to intermediate sulfidation epithermal deposits of Los Ricos South in Jalisco and El Tigre and Alamos Silver in Sonora. The South Main and Eagle area results from Gogold’s Los Ricos South are the strongest in gold and silver in this type of deposits, whereas Silver Tiger’s and Minaurum’s drill intervals from El Tigre and Alamos Silver are stronger in lead and zinc.

The Mining and Exploration News in Mexico: Highlights on the Second Week of November 2022

By Jorge Cirett

During the 45th week of the year (November 7th to November 13th, 2022), 20 companies working in Mexico released news on their properties. One company declared commercial production, thirteen companies released Q3 2022 results and one company closed the final tranche of a private placement. Three companies presented drilling results or updated work at their advanced properties. Two companies signed a LOI on an acquisition proposal.  ON MEXICO ISSUES, no relevant news. ON EXPLORATION, no relevant news. ON MINING, SilverCrest Metals declared commercial production at Las Chispas, in Sonora. McEwen Mining, First Majestic Silver, Coeur Mining, Avino Silver & Gold Mines, Gatos Silver, Torex Gold, Fortuna Silver Mines, Pan American Silver, Golden Minerals, Endeavour Silver, Excellon Resources, Orla Mining and Americas Gold and Silver released Q3 2022 production results. ON FINANCING, Silver Viper Minerals closed an additional tranche of financing for $200 K. ON RESOURCES AND DEVELOPMENT, Guanajuato Silver Company released drill results from a new vein at El Cubo, in Guanajuato. Oroco Resource provided drill results from the South Zone at its Santo Tomás project in Sinaloa. Orla Mining updated on work at its Camino Rojo Sulphide deposit in Zacatecas aiming to evaluate its underground development options. ON DEALS AND CORPORATE ISSUES, Silver Viper Minerals and Canasil Resources signed a LOI on the proposed acquisition of the latter by Silver Viper. ON SOCIAL RESPONSIBILITY, Discovery Silver informed on awards received by its social responsibility work and achievements at the corporate and community levels.

ON MEXICO ISSUES

  • No Relevant News.

ON EXPLORATION

  • No Relevant News.

ON MINING

  • SilverCrest Metals Inc. declared commercial production on November 1, 2022 at Las Chispas mine in Sonora. During the commissioning period in September and October 62.1 K tonnes were processed at a rate of 1,019 tonnes per day (name plate design: 1,250 tpd), recovering 96.7% Au, 96.8% Ag. “Moving Las Chispas from discovery to production in less than seven years is a monumental achievement”.
  • McEwen Mining Inc. reported Q3 2022 results, with some information on its Mexican operations. A complete process plant was acquired for the Fenix project in Sinaloa, “This acquisition has made Fenix more attractive to build and could provide a new long life mine for McEwen Mining”.
  • First Majestic Silver Corp. released financial results for the third quarter 2022. During the period the company produced 2.7 M Oz Ag, 67,022 Oz Au (8.8 M Oz AgEq) at cash cost $13.34 per Oz AgEq and AISC of $17.83 per Oz AgEq. At the end of the quarter the company held cash and cash equivalents of $148.8 M and restricted cash of $101.2 M. The Table below shows the production in San Dimas (Durango), Santa Elena (Sonora) and La Encantada (Coahuila), which account for 83% of the company’s production.
  • Silver Viper Minerals Corp. closed an additional tranche of its non-brokered private placement announced in June 6 2022, for aggregate gross proceeds of $200 K (La Virginia, Sonora).

  • Coeur Mining Inc. reported third quarter 2022 financial results, including figures from its operations in Mexico. At Palmarejo, in Chihuahua, 538.7 K tonnes were milled @ 1.52 gpt Au, 110 gpt Ag, recovering 93.3% Au, 84.9% Ag to produce 24,807 Oz Au, 1.61 M Oz Ag at a cash cost of $948 per Oz Au and $12.67 per Oz Ag. Approximately 38% of Palmarejo’s gold sales were sold under its gold stream agreement at a price of $800 per Oz Au. “Full-year 2022 production is expected to be 100,000 – 110,000 ounces of gold and 6.0 – 7.0 million ounces of silver”.
  • Avino Silver & Gold Mines Ltd. released financial results for the third quarter 2022. At the Avino mine in Durango, 162.2 K tonnes were milled to produce 285.4 K Oz Ag, 1,202 Oz Au, 2.1 M Lb Cu, at cash cost $10.29 per Oz AgEq and an AISC of $17.32 per Oz Ag. The company has budgeted 15,000 m of drilling in 2022, focusing on the area at depth below the current Elena Tolosa mining area.
  • Gatos Silver Inc. reported operating financial results for Q3 2022. At Cerro Los Gatos mine, in Chihuahua, 263.3 K tonnes were milled @ 356 gpt Ag, 0.34 gpt Au, 2.38% Pb, 4.70% Zn, containing 2.70 M Oz Ag, 1,400 Oz Au, 12.2 M Lb Pb, 17.8 M Lb Zn and recoveries of 89.6% Ag, 48.9% Au, 88.5% Pb, 65.4% Zn. By the period’s end, the company had a cash balance of $15 M and debt outstanding of $13 M.
  • Torex Gold Resources Inc. reported financial and operational results for Q3 2022. At El Limón-Guajes, in Guerrero, 122,208 Oz Au were produced at cash cost $760 and an AISC of $1,059 per Oz Au. “Cash flow from operations totalled $102.4 million and $91.3 million prior to changes in non-cash operating working capital. Cash flow from operations includes $19.2 million of income taxes paid”. Expenditures at the adjacent Media Luna project totaled $32.5 M in the quarter, with a remaining project spend of $812.4 M. The needed Media Luna environmental permit (MIA) was approved by SEMARNAT.
  • Fortuna Silver Mines Inc. reported its financial and operating results for the third quarter of 2022, including figures from its Mexican operations. At the San José mine in Oaxaca, 267.2 K tonnes were milled at an average rate of 3,071 tonnes per day (tpd), grading 196 gpt Ag, 1.16 gpt Au, recovering 92% Ag, 91% Au to produce 1.54 M OZ Ag, 9,091 Oz Au at cash cost $9.70 per Oz AgEq and an AISC of $14.23. The net cash was affected by the “$12.6 million payment including taxes for the settlement of the disputed royalty claim with the Mexican Geological Survey”.
  • Pan American Silver Corp. reported results for the third quarter 2022, without expanding on figures by region.
  • Golden Minerals Co. provided financial results for Q3 2022. The Rodeo mine in Durango produced 2,972 Oz Au, 11.9 K Oz Ag with cash cost of $1,391 per Oz AuEq. At Velardeña, in Durango, evaluation of modified mine plans, including ore sorting technology.  At Yoquivo, in Chihuahua, a 5,693 m drill program in 24 holes was completed and is currently conducting a 3,000 m drill program, planning on the completion of a maiden resource estimate for Q1 2023. Golden ended the quarter with a cash balance of $6.5 M.
  • Endeavour Silver Corp. announced financial and operating results for Q3 2022. The company has the Guanaceví mine in Durango and the Bolañitos mine in Guanajuato. Consolidated production (no details provided) was 1.46 M Oz Ag, 9,194 Oz Au (2.2M Oz AgEq) at cash cost $10.32 per Oz Ag, and an AISC of $20.27 per Oz Ag. The company has a cash position of $69.2 M and $101.6 M in working capital. Work at the Terronera project in Jalisco includes “detailed engineering, critical contracts, procurement of long-lead items and road and camp construction…. Budgeted development expenditures for 2022 are estimated to be $41.0 million”. Also, during the period was completed the acquisition of the La Pitarrilla project in Durango and the sale of El Compas mine in Zacatecas.
  • Excellon Resources Inc. reported financial results for the Q3 2022. At Platosa, in Durango, 23.8 K tonnes were mined, 22.7 K tonnes milled @ 442 gpt Ag, 3.69% Pb, 3.14% Zn, recovering 92.5% Ag, 76.9% Pb, 78.9% Zn, to produce 298.1 K Oz Ag, 1.2 M Lb Pb, 1.24 M Lb Zn (459.8 K Oz AgEq), at cash cost $9.78 per Oz AgEq and an AISC of $14.31 per Oz AgEq. “Mine activity in Q3 2022 focused on remnant development and extraction, pillar recovery and minimal mining of fresh mineral. Wind down activities continued in Q3 to minimize the work associated with care and maintenance required in Q4 2022”.
  • Orla Mining Ltd. announced its results for the third quarter 2022. During the period the Camino Rojo Oxide project produced 28,876 Oz Au at cash cost $452 and all-in sustaining costs of $594 per Oz Au. The plant’s throughput averaged 19,200 tpd, or 107% of nameplate capacity. By the end of the period the company held $89.1 M in cash and a net debt of $77.5 M.
  • Americas Gold and Silver Corp. reported financial and operational results, including figures from its Mexican operations. At Cosalá, in Sinaloa, 186 K Oz Ag, 9.4 M Lb Zn, 3.8 M Pb were produced. “Cash costs per silver ounce and all‐in sustaining costs per silver ounce were negative $4.43 and positive $4.35, respectively”.

ON FINANCING

  • Silver Viper Minerals Corp. closed an additional tranche of its non-brokered private placement announced in June 6 2022, for aggregate gross proceeds of $200 K (La Virginia, Sonora).

ON RESOURCES AND DEVELOPMENT

  • Guanajuato Silver Company Ltd. provided drill results that confirm a new transverse vein at El Cubo mine in Guanajuato. Highlighted true width intervals comprise 0.85 m @ 3.54 gpt Au, 398 gpt Ag; 1.29 m @ 0.79 gpt Au, 102 gpt Ag; 0.90 m @ 0.82 gpt Au, 112 gpt Ag; 0.92 m @2.15 gpt Au, 278 gpt Ag; 1.28 m @1.70 gpt Au, 205 gpt Ag. “The San Luis vein runs perpendicular to the primary regional north-west Villalpando and Dolores mineralized vein structures, and like other transverse veins at El Cubo, the San Luis vein is anticipated to often carry proportionally higher gold content”.
  • Oroco Resource Corp. released assay results for three holes testing the South zone at its Santo Tomás project in Sinaloa. The total strike length of mineralization extends now for 3.2 Km, with 0.5 km more open for extension to the south. Highlighted core length intervals comprise 271 m @ 0.33% Cu, 0.029 gpt Au, 2.6 gpt Ag; 34 m @ 0.26% Cu, 0.9 gpt Ag; 140 m @ 0.23% Cu, 1.8 gpt Ag; 277.4 m @ 0.36% Cu, 0.026 gpt Au, 2.6 gpt Ag. Twelve holes have been completed to date on the South zone and 41 holes (27,004 m) in the North zone.
  • Orla Mining Ltd. updated on work at its Camino Rojo Sulphide project in Zacatecas (below its Camino Rojo Oxide project currently in production). Previous operators envisioned a large open pit mining scenario for disseminated low-grade sulfides, with high capital costs for a large processing facilities and extensive material handling. Orla has been assessing the existence of higher-grade smaller ore shoots with the potential to sustain a more targeted underground development. Drilling has intercepted mineralization grading more than 2 gpt Au over more than 30 m in the five holes with results so far.

ON DEALS AND CORPORATE ISSUES

  • Silver Viper Minerals Corp. and Canasil Resources Inc. entered into a non-binding letter of intent in November 6, 2022, with respect of the proposed acquisition by Silver Viper of all outstanding shares of Canasil, in exchange for common shares of Silver Viper. Canasil shareholders will receive one (1) common share of Silver Viper by for every four (4) Canasil shares held. At the closing of the proposed transaction Canasil will have the right to nominate one member of the board of directors of Silver Viper. Furthermore, Silver Viper will be required to complete a financing for at least C$1 M and Canasil a financing for at least C$260 K. Silver Viper holds La Virginia project in Sonora, whereas Canasil owns the Sandra, Nora, Vizcaino, Salamandra and Colibri projects in Durango, and the La Esperanza project in Zacatecas.

ON SOCIAL RESPONSIBILITY

  • Discovery Silver Corp. received its official ESR Distinction, issued by the Mexican Center for Philanthropy “to organizations that have demonstrated they operate in a socially and environmentally responsible manner”. The company also received the Great Place to Work Certification, the Clean Industry Certification emitted by PROFEPA (Federal Attorney’s Office for Environmental Protection) and the Safe Industry Certification Level 1 issued by the Mexican Government’s Secretary of Labor.

On the image below Quartz veinlet stockwork in limestone on a project in the Sonoran Desert. Picture by Jorge Cirett.

Mexico’s Best Drilling Intercepts on the Second Week of November 2022

Only two companies released drilling results during the week: Guanajuato Silver Company on a new vein at El cubo project in Guanajuato and Oroco Resource on drilling the South Zone of the Santo Tomás deposit in Sinaloa. The Guanajuato district represents an iconic low sulfidation epithermal system since Larry Buchanan did its thesis there in 1979. The Santo Tomás porphyry copper system has an historic mineral resource since a few decades ago that is now likely to be increased by Oroco’s drilling.

Mexico’s Best Drilling Intercepts, First Week of November 2022

This week’s best intercepts were to be dominated by the long good-grade gold-silver intercepts of GoGold Resources on the Eagle zone of the Los Ricos South project in Jalisco…… if not by the release by Pan american Silver of lengthy intercepts of zinc-lead-silver-copper at its La Colorada Skarn deposit in Zacatecas, which is steadily confirming the presence of a World Class Mineral Deposit. Los Ricos South and the Plomosas mine, in Sinaloa, projects represent both intermediate sulfidation epithermal systems in veins and stockwork zones, while La Colorada Skarn and Cerro Las Minitas intercepts represent skarn systems.

At Los Ricos South the best intercept comprises 110.60 m @ 1.64 gpt Au, 265 gpt Ag, including a high grade zone of 11.50 m @ 11.35 gpt Au, 2,198 gpt Ag, whilst at Plomosas, in Sinaloa, the best intercept comprised 36.50 m @ 1.00 gpt Au, 268 gpt Ag, similar grades but lesser thickness, although true width and not core length as the former. Some of the core intervals at La Colorada Skarn are high-grade in silver, like the 58.30 m @ 417 gpt Ag, although far from representative of the overall grade. At Cerro Las Minitas, in Durango, the best intercept silver intercept is 1.90 m @ 599 gpt Ag, interesting, but obscured by the shadow of La Colorada Skarn, Los Ricos South and Plomosas and Plomosas silver results.

Base metals best drilling intercepts are dominated by those from La Colorada Skarn (LCS), as even a tenth of its length at those grades in lead and zinc would be considered a good intercept. The best lead intercepts from LCS comprise 58.30 m @ 11.95% Pb and 92.95 m @ 7.01% Pb, those of Plomosas 11.40 m @ 9.20% Pb and 36.50 m @ 2.40% Pb; and 1.90 m @ 16.90% Zn at Cerro Las Minitas. For zinc the results are not that different, with 197.50 m @ 7.21% Zn, 194.45 m @ 4.26% Zn and 90.85 m @ 9.08% Zn at LCS, 16.90 m @ 4.80% Zn and 6.50 m @ 6.80% Zn at Plomosas and 1.90 m @ 10.20% Zn at Cerro Las Minitas. Copper intercepts made it to this list not by the grade, but for the length of the intercepts at LCS, with 194.45 m @ 0.21% Cu and 197.50 @ 0.09% Cu.

The Mining and Exploration News in Mexico: Highlights on the Fourth Week of October 2022

By Jorge Cirett

During the 43rd week of the year (October 24th to October 30th, 2022), 17 companies working in Mexico released news on their properties. Three companies posted exploration advances on their projects, three companies released Q3 2022 results, one company closed the first tranche of a private placement, one is newly trading at another Stock Exchange and one more expanded on the deferment of payment on the acquisition of a mine. Three companies presented Q3 2022 results. Six companies presented drilling results on their advanced properties. One Company is acquiring a large adjoining land package adjacent to its project and one more expanded on a legal suit regarding the illegal transfer of several of its mining concessions.  ON MEXICO ISSUES, mining companies at the BMV are taking a pounding due to reduced production, inflation and lower metal prices. The AIMMGM is asking the government for increase security and raised the danger of explosives theft. ON EXPLORATION, in Sonora, Aztec Minerals released drilling results from its Cervantes project; Colibri Resource resumed exploration at Evelyn. In Nayarit, Angel Wing Metals updated on exploration at El Grande. ON MINING, Mag Silver, Agnico Eagle Mines and Alamos Gold released Q3 2022 production results. ON FINANCING, Capitan Mining closed the first tranche of its non-brokered private placement for $2.6 M gross proceeds. Guanajuato Silver Company is now on the Apex segment of the Aquis Stock Exchange. Bear Creek Mining reached an agreement to defer the payment of the Mercedes mine in Sonora for two years. ON RESOURCES AND DEVELOPMENT, Prime Mining released drilling results from Los Reyes in Sinaloa. Oroco Resources presented assays from drilling at Sant Tomás, in Sinaloa. Silver Tiger presented results from drilling El Tigre and Sooy veins at El Tigre, in Sonora. Vizsla Silver reported results from 12 holes on La Luisa vein at its Panuco project in Sinaloa. Defiance Silver updated on the drill program at the Veta Grande vein system of the Zacatecas Silver project in Zacatecas. Silver Dollar reported the last assays from drilling of La Noria zone at La Joya project in Durango . ON DEALS AND CORPORATE ISSUES, Angel Wing Metals entered into a binding agreement to acquire a large land package adjacent to its El Grande project in Nayarit. Defiance Silver initiated a case “against the illegally and fraudulently transferred mineral concessions concerning its Tepal Project” in Michoacan. ON SOCIAL RESPONSIBILITY, Agnico Eagle and Alamos Gold presented information on their social responsibility work and achievements at the corporate and community levels.

ON MEXICO ISSUES

  • Mining companies in the BMV (Bolsa Mexicana de Valores) had a negative Q3 2022 due to inflation and lower metal prices. Grupo México reported a 34.7% year to year fall in Q3 2022 of EBITDA and a 24.4% decline in share price to a 6.6% reduction in copper production and a 18.6% drop in the red metal price. Total copper production was 256.3 K tonnes in the period. Industrias Peñoles EBITDA is 18.5% lower in the same period, as well as a 10.9% drop in the share price.
  • The AIMMGM (Asociación de Mineros, Metalurgistas y Geólogos de México) asked for government intervention to increase security on their operations. States with the strongest mining tradition like Chihuahua, Estado de México, Guerrero, Guanajuato, Sonora and Zacatecas are among those with greater insecurity perception ratings. Companies in some states spend up to 2% of their total budget in security, and some companies have reported to the government their compliance with racketeering schemes to be able to operate. The risk posed by the increase in the theft of explosives was also raised.  

ON EXPLORATION

  • Aztec Minerals Corp. completed the phase 3 core drilling program at the Cervantes project in Sonora. Eleven core hole totaled 2,515.5 m of drilling at the California, California North and Jasper targets. Highlighted core length results comprise 9.0 m @ 1.72 gpt Au; 16.5 m @ 0.34 gpt Au; 26.7 m @ 0.54 gpt Au, 7.5 m @0.43 gpt Au; 46.5 m @ 0.44 gpt Au; 5.65 m @0.25 gpt Au. “… the gold mineralization appears to be widely distributed in disseminations, fractures and veinlets at high levels within in a Quartz-feldspar porphyry intrusive complex and related hydrothermal breccias”.
  • Angel Wing Metals Inc. updated on the exploration program at El Grande project after the acquisition of the adjoining La Reyna land package in Nayarit (See Deals and Corporate Issues below). “The first phase of greenfield exploration has focused on the near surface low sulphidation exploration potential, starting with regional geological mapping and prospecting, structural and alteration mapping, outcrop chip and channel sampling rock sampling, and environmental baseline studies. Detailed mapping and sampling of selected targets are prioritised for grid soil and outcrop sampling programs and drilling…. An airborne geophysical survey is proposed with follow-up ground geophysics on selected targets pending receipt of permits. The results from this work will be used to design a Phase One 3,000 metre diamond drill program to commence in late Q4 2022 or Q1 2023, once updated drill permits including the newly acquired claims are received.
  • Colibri Resource Corp. has resumed exploration at its Evelyn property in Sonora. Soil samples are currently being collected by geologists on site, and an application for drilling and trenching was submitted to SEMARNAT. One program of reverse circulation (RC) drilling comprises 2,000 m in five holes to test a chargeability and resistivity anomalies and a second program is to explore under alluvial cover, comprising several short, closely spaced holes to penetrate the alluvium and sample the top of the bedrock

ON MINING

  • Mag Silver Corp. reported third quarter 2022 production from the Juanicipio project (56% Fresnillo PLC, 44% Mag Silver) in Zacatecas. On a 100% basis, 180.8 K tonnes of underground development and initial stopes were processed during the period, to produce 2.62 M Oz Ag, 5,422 Oz Au (Mag’s attributable 44% interest: 1.15 M OZ Ag, 2,386 Oz Au). “Mineralized material from Juanicipio continues to be processed through the nearby Saucito (70%) and Fresnillo beneficiation plants (30%) which are owned by Fresnillo PLC.
  • Agnico Eagle Mines Ltd. released third quarter results, including figures from its operations in Mexico. At Pinos altos, in Chihuahua, 378 K tonnes were processed at a rate of 4,109 tonnes per day (TPD), grading 1.98 gpt Au to produce 23,041 Oz Au at a production cost of $1,498 per OZ Au and total cash cost of $1,295 per Oz Au. Exploration drilling confirmed the existence of a high-grade block 100 m below the lowest production level at Pinos Altos, with a reported drill intercept of 11.6 m @ 3.1 gpt Au, 122 gpt Ag. At the Cubiro deposit under development, 9.2 m @ 3.3 gpt Au were intercepted in the western limits of the main Cubiro Corridor. At La India, in Sonora, 1.04 M tonnes were processed at a rate of 11,359 TPD, grading 0.72 gpt Au at a production cost of $1,246 per Oz Au and a total cash cost of $1,196 per Oz Au. “In the third quarter of 2022, the Main Zone pit was depleted and ore production transitioned to the La India and El Realito pits, resulting in higher gold grades and a higher stripping ratio”.
  • Alamos Gold Inc. reported its financial results for the Q3 2022, including figures from its Mexican operations. At Mulatos, in Sonora, 42,700 Oz Au were produced at total cash cost $1,781 per Oz Au and mine site AISC of $1,137 per Oz Au, with a capital expenditure of $6.9 M. At the Mulatos mine 759.3 K tonnes were mined and 1.57 M tonnes of waste moved (2.07 waste to ore ratio), with 1.27 M tonnes stacked @ 0.75 gpt Au (30,916 Oz Au stacked, 56% Au recovery rate) and 14 K tonnes crushed per day. At La Yaqui Grande 739 K tonnes were mined, 5.3 M tonnes of waste moved, 794 .1 K tonnes @ 1.23 gpt Au were stacked (31,362 Oz Au stacked, 81% Au recovery) and 8.7 K tonnes crushed per day. “La Yaqui Grande is an open pit mine with an independent leach pad located approximately seven kilometres from the existing Mulatos operation….  La Yaqui Grande performed well in its first full quarter of operation, producing 25,300 ounces of gold”.

ON FINANCING

  • Capitan Mining Inc. closed the first tranche of the previously announced $3.2 M non-brokered private placement for total proceeds of $2.6 M. The second tranche for total proceeds of $600 K is expected to close on or before the end of October (Cruz de Plata, Durango).
  • Guanajuato Silver Company Ltd. completed its admission to the Apex segment of the Aquis Stock Exchange, whilst continuing to trade on the TSX Venture Exchange (El Cubo and Valenciana, Guanajuato).
  • Bear Creek Mining Corp. reached a “heads of agreement” with Equinox Gold Corp. to amortize over a two-year period the payment of the final $25 M purchase price installment for the Mercedes mine in Sonora. The payment that was to be made on October 2022 has been converted in a promissory note maturing on October 2024, with monthly principal and interest payments commencing in February 2023, with an interest rate of 12.5% plus the greater of 2.5% or the 90-day average SOFR and monthly payments of US$500 K or 50% of free cash flow (Mercedes, Sonora).

ON RESOURCES AND DEVELOPMENT

  • Prime Mining Corp. announced further phase 2 drill results from the Guadalupe area of the Los Reyes project in Sinaloa. Highlighted true width (TW) intercepts comprise 11.8m @ 2.7 gpt Au, 88 gpt Ag (including 2.2 m @ 27.9 gpt Au, 509 gpt Ag); 17.0 m @ 1.7 gpt Au, 59 gpt Ag (including 5.8 m @ 4.9 gpt Au, 176 gpt Ag); 12.2 m @ 1.7 gpt Au, 140 gpt Ag; 3.5 m @ 4.9 gpt Au, 614 gpt Ag (including 0.6 m @ 23.2 gpt Au, 2,550 gpt Ag); 1.9 m @ 6.08 gpt Au, 913 gpt Ag. “Reported intercepts are up to 100 m to the west, 240 m to the east, and 100 m below the 2020 pit-constrained resource”.
  • Oroco Resource Corp. released assay results from an additional 2,668 m of drilling in the North zone and 1,456 m in the Brasiles zone of its Santo Tomás project in Sinaloa. Highlighted core length intervals comprise 195.2 m @ 0.41% Cu; 117.8 m @ 0.22% Cu; 132.0 m @0.40% Cu; 36.0 m @ 0.20% Cu; 106.1 m @ 0.31% Cu; 211.6 m @ 0.41% Cu; 133.0 m q 0.17% Cu; 159.6 m @ 0.32% Cu; 228.0 m @ 0.31% Cu. “The 2021-2022 North Zone drill program is continuing to confirm and expand the 2009 Gradeshell model of Cu >0.30%” in the 2019 technical report, with a total of 38 holes now completed on the North zone spanning 1,400 of strike length.
  • Silver Tiger Metals Inc. presented results from drilling the El Tigre and Sooy veins at El Tigre project in Sonora. Highlighted core length intervals comprise 0.5 m @ 1.46 gpt Au, 1,320 gpt Ag; 5.4 m @ 220 gpt Ag; 10.7 m @ 120 gpt Ag (including 1.1 m @550 gpt Ag); 20.5 m @42 gpt Ag; 1.6 m @ 0.28 gpt Au, 528 gpt Ag; 0.5 m @ 991 gpt Ag; 5.9 m @ 0.10 gpt Au, 678 gpt Ag (including 1.0 m @0.37 gpt Au, 2,754 gpt Ag; 36.4 m @ 0.13 gpt Au, 42 gpt Ag; 3.1 m @211 gpt Ag; 9.4 m @ 0.19 gpt Au, 641 gpt Ag; “These next three wide consistently mineralized high grade holes confirm the new discovery in the El Tigre Vein we first reported in September 2022. Drilling continues on this exploration target under the unmined portion of the Historic El Tigre Mine as we follow this wide high grade along strike to the North.”
  • Vizsla Silver Corp. reported results from 12 holes targeting the La Luisa vein, close to the Napoleon vein, at its Panuco project in Sinaloa. Highlighted true width intervals comprise 6.13 m @ 133 gpt Ag, 3.68 gpt Aum 0.2% Pb, 0.3% ZN (including 0.68 m @ 595 gpt Ag, 27.50 gpt Au, 0.5% Pb, 0.6% Zn); 2.59 m @ 197 gpt Ag, 4.60 gpt Au, 0.2% Pb, 0.4% Zn (including 0.57 m @ 596 gpt Ag, 18.50 gpt Au, 0.6% Pb, 0.9% Zn); 1.00 m @ 49 gpt Ag, 2.90 gpt Au, 0.2% Pb, 0.7% Zn; 3.44 m @ 77 gpt Ag, 1.11 gpt Au; La Luisa vein structure has been mapped for almost 1 Km hosted in rhyolite tuffs and “bears vein-textures indicative of being at higher-levels in the epithermal profile …… there exists the potential for increased grades and widths along strike and down plunge to the south”.
  • Defiance Silver Corp. updated on the drill program at the Veta Grande vein system of the Zacatecas Silver project in Zacatecas. Highlighted core length results comprise 10.16 m @ 0.70 gpt Au, 121 gpt Ag, 0.7% Pb, 2.9% Zn (or 339 gpt AgEq, including 3.38 m @ 1.96 gpt Au, 345 gpt Ag, 2.2% Pb, 8.0% Zn, which includes 0.9 m @ 4.18 gpt Au, 868 gpt Ag, 4.6% Pb, 17.0% Zn); 2.0 m @ 0.51 gpt Au, 121 gpt Ag, 1.4% Pb, 4.8% Zn; 1.94 m @ 0.62 gpt Au, 29 gpt Ag, 0.4% Pb, 1.1% Zn; 2.19 m @ 0.29 gpt Au, 79 gpt Ag, 0.2% Zn. These results confirm the continuity of mineralization below the 2014 mineral resource. “The highest-grade silver mineralization at the San Acacio project is typically associated with honey-coloured sphalerite, argentiferous galena, variable silver sulfides and sulfosalts, and spatially correlated with amethyst”.
  • Silver Dollar Resources Inc. reported final assays from phase II drilling at the Noria portion of the La Joya project in Durango. Highlighted core length results comprise 25.44 m @ 21 gpt Ag, 0.08 gpt Au, 0.17% Cu, 0.2% Zn; 3.86 m @ 72 gpt Ag, 0.11 gpt Au, 0.09% Cu, 0.5% Zn; 1.29 m @ 304 gpt Ag, 0.68 gpt Au, 1.8% Pb, 5.3% Zn; 2.88 m @ 52 gpt Ag, 0.14% Cu, 0.1% Pb, 0.5% Zn; 3.0 m @ 2.3% Zn; 1.50 m @ 20.60% Zn; 0.66 m @ 43 gpt Ag, 2.1% Pb, 5.8% Zn; 6.67 m @ 63 gpt Ag, 0.10 gpt Au, 0.18% Cu, 0.3% Pb, 1.0% Zn.

ON DEALS AND CORPORATE ISSUES

  • Angel Wing Metals Inc. entered into a binding agreement with a private entity to acquire 100% interest in the 102.87 square Km La Reyna property land package in six titled concessions adjoining the El Grande project, and cover the Aguila de Oro (Golden Eagle) mining district in Nayarit. Angel Wing Metals Is to make a total payment of US$700 K, of which US$150 K have been paid upon signing, US$150 K have been paid upon filing of the agreement at the Public Registry of Mining in Mexico (Registro Público de Minería), and US$400 K to be paid upon positive resolution on the agreement by the Public Registry of Mining. A further payment of US$50 K will be due upon the identification of each 1.0 M OZ Au in the measured and indicated categories of a mineral resource on a NI43-101 technical report, and a 1.5% net smelter return (NSR) royalty with Angel Wing Metals retaining the right of first refusal to purchase the royalty for US$2.0 M.
  • Defiance Silver Corp. announced “that the case initiated against the illegally and fraudulently transferred mineral concessions concerning its Tepal Project” in Michoacán, has been admitted for trial by a District Court in Michoacán. The mineral concessions have to “stay” until the trial concludes and a final judgement is rendered. The Mexican Mining Public Registry has been informed. “Defiance has a substantial likelihood of success on the merits. Mexican Law, Mexican Precedents, and Mexican Courts are consistent in declaring null and void illegal transfers made fraudulently”.

ON SOCIAL RESPONSIBILITY

  • Agnico Eagle Mexico was awarded 17th place among the Top 100 of the best companies to work for in Mexico by Great Place to Work®. La India mine in Sonora received the “Distinction of Socially Responsible Company” distinction “granted by the Mexican Center for Philanthropy (Centro Mexicano para la Filantropía) and the Foundation for Sustainability and Equity (Alianza por la Responsabilidad Social Empresarial en México) to recognize companies for their commitment to ensuring the well-being of employees, operating with superior business ethics, community outreach and environmental care and preservation”.
  • Alamos Gold Inc. held information sessions on the company’s cyanide management practices with the communities of Yécora, El Trigo and Matarachi, Sonora, within the framework of the International Cyanide Management Code. An ambulance was donated to the Sahuaripa municipality, an online high school was established at Matarachi through an agreement with the Tec de Monterrey. Two freshwater pumping stations were set at Matarachi. New scholarship committees established in Matarachi, Sahuaripa and Yécora as part of the Company’s continued support for local students.

On the image below Late milky white quartz veinlets cross cutting previous quartz-specularite veining in the Sonoran Desert. Picture by Jorge Cirett.

Mexico’s Best Drilling Intercepts on the Fourth Week of October 2022

This week several companies posted drilling intercepts from a variety of mineralizing systems. Structurally controlled intermediate sulfidation epithermal vein systems are represented by Prime Mining’s Los Reyes, Vizsla’s Panuco, both in Sinaloa, Silver Tiger’s El Tigre in Sonora and Defiance’s San Acacio vein system at the Zacatecas Silver project in Zacatecas. Porphyry copper systems are represented by Oroco’s Santo Tomás project in Sinaloa, with copper and gold intercepts, and Aztec’s Cervantes project in Sonora, with its gold intercepts. Silver Dollar’s La Joya, in Durango, is a little bit more difficult to categorize, but tentatively is mineralization related to intrusive bodies, then overprinted by intermediate sulfidation mineralization, which is a trade mark of several deposits in Mexico.

Mexico’s Best Drilling Intercepts on the Third Week of October 2022

It is not common to have news with high grade drill intercepts like those of last week by Regency Silver at Dios Padre in Sonora, and even less common to have results as good or better the following week, as GoGold has announced from Los Ricos South in Jalisco, or by GR Silver from San Marcial in Sinaloa. Both projects cover structurally controlled epithermal systems of either low or intermediate sulfidation affinity.

The Mining and Exploration News in Mexico: Highlights on the Second Week of October 2022

During the 41st week of the year (October 10th to October 16th, 2022), 15 companies working in Mexico released news on their properties. Three companies posted exploration advances on their properties, six companies released Q3 2022 results, one company is to undertake a private placement and one more expanded on the maturity extension of convertible debentures and three companies released drilling results from their advanced properties.  ON MEXICO ISSUES, no relevant news. ON EXPLORATION, in Sonora, Regency Silver released drilling results from the Dios Padre property, including great results from a hole testing a geophysical anomaly 500 m from the historic resource. Prismo Metals updated on the drilling program and sampling protocol at Palos Verdes. In Durango, Silver Wolf updated on exploration at its Ana Maria project. ON MINING, Endeavour Silver, Torex Gold, GoGold Resources, Orla Mining, Gatos Silver and Gold Resource released Q3 2022 production results. ON FINANCING, Sonoro Resource is to undertake a financing round for C$525 K. Barksdale Resources extended the maturity date of convertible debentures with a remaining principal amount of $1.5 M.  ON RESOURCES AND DEVELOPMENT, Avino Silver and Gold Mines released drilling results from its Avino mine in Durango. Prime Mining provided drilling results from Los Reyes property, in Sinaloa. Vizsla Silver reported drilling results from the southern part of the Napoleon vein at its Panuco project in Sinaloa. ON DEALS AND CORPORATE ISSUES, no relevant news. ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUES

  • No Relevant News.

ON EXPLORATION

  • Prismo Metals Inc. updated on the drill program at its Palos Verdes project in Sinaloa. A total of 1,062 m have been drilled of the planned minimum 2,000 m. Three holes have been completed and one is in progress testing the Palos Verdes vein and a structural intersection. By analyzing Vizsla’s Silver recent drill data on the adjacent Panuco project, a new sampling protocol has been implemented, including wallrocks with quartz veining. Several long intervals of the past drilling campaign will be also sent to the lab.
  • Regency Silver Corp. released results from the first 12 holes at its Dios Padre property in Sonora. The highlighted core length interval of the first hole on a geophysical anomaly 500 m north of the historic resource comprise 53.8 m @ 4.7 gpt Au (including 35.8 m @ 6.84 gpt Au, 22 gpt Ag, 0.88% Cu and 9.8 m @ 13.97 gpt Au, 50 gpt Ag, 1.11% Cu) starting at 420 m depth. Au-Cu-Ag mineralization in this hole is largely breccia hosted, with pyrite and chalcopyrite forming the breccia matrix. “The core of the mineralized zone sits within and adjacent to a felsic intrusive body, though mineralization is present both within the felsic unit as well as the host andesites. Both rock units are strongly altered to white mica with some silica”. The hole was stopped due to the 500 m maximum capacity of the rig being used. Highlighted intervals were released by element, comprising 60 m @ 0.33% Cu; 52 m @ 0.69% Cu (including 33 m @ 0.94% Cu) and 29.3 m @ 0.36 gpt Au; 6 m @ 0.68 gpt Au; 53.8 m @ 4.7 gpt Au; 21.5 m @ 0.53 gpt Au; 4.2 m @ 2.1 gpt Au; 49.65 m @ 0.58 gpt Au; 10 m @ 0.57 gpt Au; 17.9 m @ 1.34 gpt Au; 23.65 m @ 0.36 gpt Au and 26.3 m @ 63 gpt Ag;  (including 4.3 m @ 317 gpt Ag); 60 m @ 19 gpt Ag; 8 m @ 60 gpt Ag; 18 m @ 14 gpt Ag; 8 m @ 67 gpt Ag; 12 m @ 45 gpt Ag; 17.5 m @ 135 gpt Ag (including 3.9 m @ 582 gpt Ag); 2.2 m @ 220 gpt Ag; 10.95 m @ 302 gpt Ag; 6.95 m @ 336 gpt Ag; 18.55 m @ 50 gpt Ag; 7.5 m @ 113 gpt Ag; 3.1 m @ 420 gpt Ag; 21.5 m @ 137 gpt Ag; 9.6 m @ 56 gpt Ag; 1 m @ 603 gpt Ag; 37.4 m @ 110 gpt Ag (including 19.65 m @ 203 gpt Ag).
  • Silver Wolf Exploration Ltd. reported on exploration at its 2,500 hectares Ana Maria property in Durango. Two main targets are being defined using a carbonate replacement deposit (CRD) model. The central claim block hosts a gold skarn type showing, while the southern claim block is distal to the intrusive, hosting CRD Ag-Zn-Pb prospects and historical small mines. “Continued work on the central claims include a reinterpretation of geophysical results to fine tune the magnetics data and further identify the intrusive contacts with the surrounding limestone at depth”.

ON MINING

  • Endeavour Silver Corp. reported third quarter 2022 production results, with 202.7 K tonnes processed at a daily rate (tpd) of 2,204 tonnes grading 248 gpt Ag, 1.60 gpt Au to produce 1.46 M Oz Ag, 9,194 Oz Au. At Guanaceví, in Durango, 97.7 K tonnes were processes at 1,062 tpd, grading 468 gpt Ag, 1.29 gpt Au with a recovery of 90.6% Ag, 89.9% Au to produce 1.33 M Oz Ag, 3,642 Oz Au. At Bolañitos, in Guanajuato, 105 K tonnes were processed at 1,141 tpd, grading 43 gpt Ag, 1.88 gpt Au with a recovery rate of 87.0% Ag, 87.5% Au, to produce 126.3 K Oz Ag, 5,552 Oz Au. Positive drilling results have been received from Guanaceví and Parral, extensive due diligence work continues at Terronera (Jalisco) and the El Compas property and plant were sold for $5 M over five years.
  • Torex Gold Resources Inc. reported Q3 2022 gold production from its El Limón Guajes mining complex in Guerrero. During the period 9,600 tonnes per day (tpd) were mined by open pit and 1,550 tpd from underground, processing an average of 13 K tonnes to produce 122,200 Oz Au.
  • GoGold Resources Inc. reported production for the quarter ending on September 30, 2022. At the Parral tailings project in Chihuahua, 145.9 K Oz Ag, 2,278 Oz Au, 124 tonnes Cu were produced during the period. “The Company had $20M USD in input tax recoverable which related to VAT receivable from the Mexican Federal Government for the years of 2017 to 2022. The Company received $11M which related to 2017 and 2018 which included interest of $5M. Management continues to work with the tax authority on the remaining claims and expects to receive these amounts in due course”.
  • Orla Mining Ltd. provided an interim operational update for the third quarter of 2022. At Camino Rojo in Zacatecas, 4.13 M tonnes were mined, of which 1.74 M tonnes @ 0.88 gpt Au were processed, 0.43 M tonnes @ 0.32 gpt Au were stockpiled (19,200 tonnes per day), and 1.96 M tonnes of waste moved (Strip ratio 0.91), to produce 28,876 Oz Au.
  • Gatos Silver Inc. announced production results for the third quarter 2022 from its 70% owned Cerro Los Gatos property in Chihuahua. During the period 263.3 K tonnes were milled at a rate of 2,862 tpd averaging 356 gpt Ag, 0.34 gpt Au, 2.38% Pb, 4.70% Zn. Recovering 89.6% Ag, 48.9% Au, 88.5% Pb, 65.4% Zn to produce 2.70 M Oz Ag, 1,400 Oz Au, 12.2 M Lb Pb, 17.8 M Lb Zn. “The Company had a cash balance of $15 million and debt outstanding of $13 million related to our credit facility as of September 30, 2022”, and “anticipates completing an impairment assessment based on the 2022 Mineral Reserve in the fourth quarter of 2022 and is working towards completing all outstanding SEC and OSC filings as soon as practicable”.
  • Gold Resource Corp. announced preliminary results in Q3 2022. At the Don David mine in Oaxaca, 110.7 K tonnes were milled (1,361 tpd), averaging 1.98 gpt Au, 80 gpt Ag, 0.37% Cu, 1.59% Pb, 4.21% Zn, to produce 5,851 Oz Au, 261.2 K Oz Ag, 296 tonnes Cu, 1,249 tonnes Pb, 3,901 tonnes Zn. 

ON FINANCING

  • Sonoro Gold Corp. is to undertake a non-brokered private placement offering for gross proceeds of up to C$525 K (Cerro Caliche, Sonora).
  • Barksdale Resources Corp. has finalized the extension of the maturity date of the secured convertible debentures administered by Delbrook Capital Advisors Inc. by one year until December 31, 2023. “The Debentures have a remaining principal amount of $1,500,000 and all other terms of the Debentures remain unchanged except for the conversion price, which has increased to $0.55 per share from $0.45 per share”. Approximately $99 K of accrued interest will be exchanged for 206.6 K shares units consisting of one share and one-half of common share purchase warrant. An extension fee of 2.78 M common share purchase warrants at a price of $0.72 exercisable up to December 2023 was agreed (San Javier, Sonora).

ON RESOURCES AND DEVELOPMENT

  • Avino Silver & Gold Mines Ltd. released drilling results from six holes completed below the current Level 17 mining area at the Elena Tolosa area of the Avino mine in Durango. Highlighted true width (TW) intercepts comprise 26.77 m @ 0.15 gpt Au, 50 gpt Ag, 0.71% Cu; 43.80 m @ 0.15 gpt Au, 15 gpt Ag, 0.49% Cu; 10.90 m @ 0.06 gpt Au, 25 gpt Ag, 1.05% Cu; 9.95 m @ 0.25 gpt Au, 17 gpt Ag, 0.40% Cu; 14.40 m @ 0.17 gpt Au, 30 gpt Ag, 0.19% Cu. These drilling results demonstrate the continuity of grade and thickness of the mineralization currently being mined at the lowest level of the mine. The company is developing a geological model based on a near porphyry environment, supported by the grade continuity over 600 m vertically and base metal zonation.
  • Prime Mining Corp. announced results from five holes in the Z-T area of the Los Reyes property in Sinaloa. Highlighted true width intercepts comprise 13.2 m @ 2.36 gpt Au, 178 gpt Ag; 7.40 m @ 0.91 gpt Au, 139 gpt Ag; 5.60 m @ 3.86 gpt Au, 89 gpt Ag; 5.30 m @ 1.17 gpt Au, 207 gpt Ag. Five rigs have completed 70,590 m of drilling in this phase 2 campaign that is planned to continue to the end of October, while results for 93 holes remain pending.
  • Vizsla Silver Corp. reported results from 12 holes targeting the southern extension of the Napoleon vein at its Panuco project in Sinaloa. Highlighted true width (tw) intervals comprise 1.0 m @ 1.60 gpt Au, 2,642 gpt Ag, 1.9% Pb, 4.1% Zn; 1.0 m @ 3.63 gpt Au, 740 gpt Ag; 0.2% Pb, 1.2% Zn; 1.86 m @ 0.6 gpt Au, 354 gpt Ag, 0.2% Pb, 0.5% Zn; 1.81 m @ 3.12 gpt Au, 1,268 gpt Ag, 0.2% Zn; 0.91 m @ 5.77 gpt Au, 320 gpt Ag, 0.5% Pb, 1.3% Zn. “The new drill holes report high grade silver and gold intercepts from the footwall vein splays and further support grade continuity to the south along the main Napoleon Vein”.

ON DEALS AND CORPORATE ISSUES

  • No Relevant News.

ON SOCIAL RESPONSIBILITY

  • No Relevant News.

On the image below Banded quartz-calcite veinlet in the Sonoran Desert. Picture by Jorge Cirett.