Quartz Vein with Sulphides

By Miguel A Heredia

During the 16^thweek of the year (April 15^thto April 21^st, 2024), at least 31 press releases were announced by companies working in Mexico, with seven reporting resources and development of their properties, six announcing financing rounds, six informing on exploration results, six communicating production results, five disclosing deals and corporate issues, and one commenting on Mexican issues. ON MEXICO ISSUES, Fortuna Silver, Prime Mining, Silver Tiger, Goldgroup, and Impact Silver reported the best drilling intercepts in Mexico on the third week of April, 2024. ON EXPLORATION, In Sonora, Tocvanhas discovered an expansive set of mineralized trends of veining and epithermal style alteration with elevated Au, Ag, As, Sb, Pb and Zn in its Greater Pilar gold-silver project, and Silver Spruce along with its JV partner Colibri announced the commencement of the 2024 drilling program at Diamante project. In Chihuahua, Kingsmen has reported high-grade samples from the Soledad II vein structure on the Las Coloradas project. In Sinaloa, Vizsla entered into an agreement to acquire two large claims comprising 10,667 hectares. In Durango, Silver Dollar reported surface sampling results from its Nora property. In Zacatecas, Defiance announced that it has delineated a high grade polymetallic and precious metal systems at its Lucita project. ON MINING, Bear Creek, Impact Silver, First Majestic, Avino, Gold Resource, and Sierra Metals reported production and/or financial results from their Mexican mine operations. ON FINANCING, Infinitum Copper announced completion of share consolidation and provided an update on private placement (La Adelita project, Sonora). Minaurum reported a brokered private placement for gross proceeds of up to CAD $6M (Alamos Silver project, Sonora). Reyna Silver announced a non-brokered Listed Issuer Financing Exemption (LIFE) for gross proceeds of CAD $1M (Guigui and Batopilas projects, Chihuahua). Vortex increased its previously announced non-brokered private placement to up to $1.75M (Riqueza Marina and Zaachila projects, Oaxaca). Capitan Silver closed its private placement of common shares for gross proceeds of CAD $2M (Cruz de Plata project, Durango). Tocvan filed an amendment and restated offering document in connection with its previously announced non-brokered private placement (Pilar project, Sonora). ON RESOURCES AND DEVELOPMENT, Fortuna Silver reported drill results on its Yessi exploration program at the San Jose mine in Oaxaca. Minera Alamos provided an operations update on its Santana mine in Sonora. Prime Mining reported generative drilling results from its Los Reyes project in Sinaloa. Guanajuato Silver filed updated technical reports on SEDAR+ (Valenciana, San Ignacio, and El Cubo in Guanajuato and Topia in Durango). Silver Tiger provided an update on the pre-feasibility study drilling program on the Stockwork gold deposit on its El Tigre project in Sonora. Goldgroup reported drill results from its Cerro Prieto property, Sonora. Impact Silver reported results from its ongoing drilling program at the Tres Amigos Zone at its Plomosas mine, Chihuahua. ON DEALS AND CORPORATE ISSUES, Quetzal Copper announced the acquisition of Las Cristinas project, Chihuahua. Xali signed a letter of intent to enter a purchase agreement with Kappes, Cassiday & Associates on the Mexican Mine Tailings Reprocessing Project at El Oro in Mexico State. Solaris Resources received approval to list its common shares on the New York Stock Exchange (NYSE) (La Verde property, Michoacan). Silver Bull reported results from its annual general meeting of shareholders (Sierra Mojada project, Coahuila). Endeavour announced the appointment of a new member to its Board of Directors (Terronera, Jalisco). ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUE

Fortuna Silver, Prime Mining, Silver Tiger Metals Inc., Goldgroup, and Impact Silver reported the best drilling intercepts in Mexico on the third week of April, 2024. Details are shown in the table below:

ON EXPLORATION

Tocvan Ventures Corp., has discovered an expansive set of mineralized trends and an area of 1,500m by 800m of veining and epithermal style alteration with elevated Au, Ag, As, Sb, Pb and Zn in its Greater Pilar gold-silver project in Sonora. The sampling has identified the source rocks for placer mining activity and expanded the known footprint of mineralization of the Greater Pilar system. Highlights from sampling include 7.3 g/t Au with 177 g/t Ag; 5.5 g/t Au with 80 g/t Ag; and 1.8 g/t Au with 389 g/t Ag. The area has seen no previous systematic exploration and remains open to the east and the north. The company plans to evaluate these areas and prepare a drilling plan to test the targets. The Pilar property is interpreted as a structurally controlled low-sulfidation epithermal system hosted in andesite rocks that has returned some of the region’s best drill results.
Silver Spruce Resources Inc., along with its JV partner Colibri Resource Corporation announced the commencement of the 2024 drilling program at Diamante project in Sonora. It will test the Pillado polymetallic target and will consist of 1,050m in ten core holes.
Kingsmen Resources Ltd., has reported high-grade samples from the Soledad II vein structure on the Las Coloradas project in Chihuahua, detecting both gold and silver mineralization. A total of 32 residual mineralization samples were tested, with four areas of “high-grade silver mineralization” detected on the main Soledad II structure and one on a NE-cross structure. Highlights include 9 samples with > 300 g/t AgEq; 4 > 200 g/t AgEq; 3 > 100 g/t AgEq; and 8 > 0.58 g/t Au. The mineralization is likely to extend below a water table at a depth of around 125 metres, and blind extensions to the existing mineralized structures and new structures could be probable at depth.
Vizsla Silver Corp., entered into an agreement to acquire El Richard and San Enrique (San Enrique prospect), two large claims comprising 10,667 hectares located south and partially adjacent to the company’s Panuco project in Sinaloa. The area shows promising geological features such as dome complexes, quartz veining, and breccias. With preliminary geophysical surveys completed, Vizsla Silver plans to conduct further exploration activities to aid in drill targeting. This acquisition aligns with the company’s strategy to expand its presence in the Sinaloa Silver Belt and enhance its exploration portfolio. The San Enrique prospect offers significant upside potential and complements Vizsla Silver’s existing projects in the region, positioning the company as a key player in silver exploration and development in Mexico. Pursuant to the acquisition agreement, the company has agreed to issue an aggregate of USD $650K in common shares in the capital of the company, at the exchange rate and market price applicable on the effective date, plus any applicable value added tax to the seller.
Silver Dollar Resources Inc., reported surface sampling results from its Nora property in Durango. Highlights include twenty one samples grading over > 100 g/t Ag; ten samples > 200 g/t Ag; four samples > 500 g/t Ag; and two samples > 1,000 g/t Ag. Sample R-053 returned 29.61 g/t Au over 0.35m, confirming the presence of high-grade gold in the Candy vein structure. Sample RM-1009 returned 2,215 g/t Ag over 0.8m, and sample RM-1013 retuned 1,212 g/t Ag over 1m, confirming the presence of high-grade silver in the Candy vein structure. Five samples returned grades > 1% Cu, with two > 3% Cu. Elevated levels of Zn (seven samples > 1% Zn) and Pb (twenty samples > 1% Pb) are also encouraging as they seem to be the best pathfinders for geochemistry.
Defiance Silver Corp., announced that it has delineated a high grade polymetallic and precious metal systems at its Lucita project in Zacatecas. Lucita North showcases polymetallic mineralization with high-grade silver and anomalous to high-grade lead, zinc, gold, and copper. The Gloria-Aurora-Plomosa system is a key target due to its significant surface geochemical anomalies. Individual surface sampling highlights include Gloria Zone sample 430012 with 331 g/t Ag, 0.15 Au, 6.9% Pb, 14.7% Zn, and 0.35% Cu; sample 430009 with 552 g/t Ag and 1.34% Pb; Aurora Zone sample 430179 with 298 g/t Ag, 3.15% Pb, and 0.1% Zn; sample 430027 with 795 g/t Ag; Plomosa Zone sample 430106 with 652 g/t Ag, 0.32 g/t Au, 6.5% Pb, 2.3% Zn, and 0.0% Cu; Lucero Vein sample 110785: 460 g/t Ag, 4.76 g/t Au, 6.3% Pb, 31.5 % Zn, and 0.87% Cu. Lucita South features low-sulfidation epithermal vein systems with high-grade silver and gold. Individual surface sampling highlights include Paty Vein sample 4208 with 2,350 g/t Ag and 0.27 Au; Lucita Vein sample 110895 with 497 g/t Ag and 1.28 g/t Au; and Palenque Vein sample 110834 with 712 g/t Ag and 0.26 g/t Au.

ON MINING

Bear Creek Mining Corporation reported Q1, 2024 production results from its Mercedes mine in Sonora. The company mined 106,365 tonnes and processed 109,880 tonnes of 3.69 g/t Au with metallurgical recoveries of 94% to produce 12,128 Oz Au and 44,040 Oz Ag.
Impact Silver Corp., reported year-end 2023 production and financial results from its Zacualpan mining district, Mexico State and Plomosas mine, Chihuahua. At Zacualpan mining district, the company milled 147,444 tonnes of 160 g/t Ag to produce 637,514 Oz Ag and sold 636,655 Oz Ag and 780 Oz Au. It reported revenue of $136.62 per tonne sold and direct costs of $130.58 per production tonne. At Plomosas, the company reported 3,744 tonnes of 13.8% Zn during Q4, 2024 after acquiring the mine and reported revenue of $141.51 per tonne milled. Impact also reported 2023 consolidated results reporting $20-8M in revenue; an operation loss of 0.6M; after investing exploration expenditures of $8.5M; and net loss of $7.6M. The company has no long-term debt.
First Majestic Silver Corp., announced Q1, 2024 production results from their Mexican mines. The table below shows mine by mine production:

The company is planning to release its first quarter 2024 unaudited financial results and announce details regarding its first quarter dividend payment on May 8, 2024.

Avino Silver & Gold Mines Ltd., reported Q1, 2024 production results from its Avino mine, Durango. The company milled 169,595 tonnes of 52 g/t Ag, 0.47 g/t Au, and 0.43% Cu with metallurgical recoveries of 88%,70%, and 84% respectively, to produce 250.&K Oz Ag, 1,788 Oz Au, and 1.35M Lb Cu (629.3K Oz AgEq).
Gold Resource Corporation announced Q1, 2024 production results from its Arista mine, Oaxaca. The company milled 116,616 tonnes of 2.51 g/t Au, 109 g/t Ag, 0.45% Cu, 1.6% Pb, and 4.3% Zn to produce 7,676 Oz Au, 370,768 Oz Ag, 909,400 Lb Cu, 2,963,520 Lb Pb, and 9,403,520 Lb Zn and sold 3,557 Oz Au, 216,535 Oz Ag, 501,360 Lb Cu, 1,494,080 Lb Pb, and 3.767,680 Lb Zn at average metal prices realized of USD $2,094 per Oz Au, USD $23 per Oz Ag, USD $8,546 per tonne Cu, USD $1,977 per tonne Pb, and USD $2,482 per tonne Zn.
Sierra Metals Inc., reported Q1, 2024 production results from its Bolivar mine in Chihuahua. The company processed 398,230 tonnes of 0.98% Cu, 20 g/t Ag, and 0.47 g/t Au with metallurgical recoveries of 92.66%, 81.46%, and 66.54% respectively to produce 7.96M Lb Cu, 204K Oz Ag, and 4K Oz Au.

ON FINANCING

Infinitum Copper Corp., announced completion of share consolidation and provided an update on private placement. Infinitum Copper Corp. has successfully completed a share consolidation, with a ratio of two pre-consolidation common shares for one post-consolidation common share. This consolidation will reduce the total number of outstanding common shares from 74,563,040 to approximately 37,281,520. The move aims to enhance the company’s flexibility and attractiveness to a wider investor base. The company’s securities will trade under the symbol “INFI” on the TSX Venture Exchange, signifying increased market appeal. Additionally, the company will provide further updates on its private placement following the consolidation (La Adelita project, Sonora).
Minaurum Gold Inc., reported a brokered private placement for gross proceeds of up to CAD $6M from the sale of 24M units of the company at a price of CAD $0.25 per unit. Each unit will consist of one common share of the company and one half of one common share purchase warrant. The company intends to use the net proceeds from the offering to complete a National Instrument 43-101 resource at the Alamos Silver project, to continue exploration drilling and for working capital and general corporate purposes.
Reyna Silver Corp., announced a non-brokered Listed Issuer Financing Exemption (LIFE) for gross proceeds of up to CAD $1M from the sale of 6.25M units at a price of CAD $0.16 per unit. Each unit will consist of one common share of the company and one common share purchase warrant. Part of the gross proceeds will be used for the exploration of Guigui and Batopilas projects, Chihuahua.
Vortex Metals Inc., increased its previously announced non-brokered private placement to up to $1.75M from the sale of 19,444,444 units at a price of $0.09 per unit. Each unit will be comprised of one common share in the capital of the company and one-half of one non-transferable common share purchase warrant (Riqueza Marina and Zaachila projects, Oaxaca).
Capitan Silver Corp., closed its private placement of common shares for gross proceeds of CAD $2,020,000 from the sale of 13,466,667 shares at a price of CAD $0.15 per share. Gross proceeds will be used to continue to advance the Cruz de Plata gold-silver project in Durango, evaluate potential acquisitions as well as to fund working capital and general corporate expenses.
Tocvan Ventures Corp, filed an amendment and restated offering document in connection with its previously announced non-brokered private placement pursuant to the listed issuer financing exemption under Part 5A of National Instrument 45-106. The amended document was redated after the company addressed regulatory comments regarding available working capital. The company expects to close the offering within the upcoming days, subject to obtaining all necessary corporate and regulatory approvals.

ON RESOURCES AND DEVELOPMENT

Fortuna Silver Mines Inc., reported drill results on its Yessi exploration program at the San Jose mine in Oaxaca. Drilling highlights (true width reported) include holes SJO-1444 with 6.68 g/t Au and 793 g/t Ag (1,327 g/t AgEq) over 3m, including 27.15 g/t Au and 2,963 g/t Ag (5,135 g/t AgEq) over 0.3m; hole SJO-1447 with 1.41 g/t Au and 182 g/t Ag (295 g/t AgEq) over 4.8m, including 1.62 g/t Au and 244 g/t Ag (374 g/t AgEq) over 0.65m, including 5.76 g/t Au and 880 g/t Ag (1,341 g/t AgEq) over 0.50m; hole SJO-1455A with 0.9 g/t Au and 107 g/t Ag (179 g/t AgEq) over 17.5m, including 1.25 g/t Au and 135 g/t Ag (236 g/t AgEq) over 7.7m, plus 1.73 g/t Au and 196 g/t Ag (335 g/t AgEq) over 2m, including 2.89 g/t Au and 335 g/t Ag (366 g/t AgEq) over 1m, plus 1.22 g/t Au and 162 g/t Ag (260 g/t AgEq) over 1.1m, including 7.21 g/t Au and 417 g/t Ag (1,494 g/t AgEq) over 0.1m; hole SJO-1458 with 2.11 g/t Au and 284 g/t g (453 g/t AgEq) over 4.8m, including 2.61 g/t Au and 285 g/t Ag (494 g/t AgEq) over 0.4m, including 4.32 g/t Au and 644 g/t Ag (990 g/t AgEq) over 0.7m, including 4.59 g/t Au and 508 g/t Ag (875 g/t AgEq) over 0.7m, including 3.19 g/t Au and 478 /t Ag (733 g/t AgEq) over 0.8m; and hole SJO-1460 with 1.16 g/t Au and 98 g/t Ag (191 g/t AgEq) over 1,3m, plus 6.29 g/t Au and 533 g/t Ag (1,036 g/t AgEq) over 8.10m, including 3.67 g/t Au and 531 g/t Ag (825 g/t AgEq) over 1m, including 18.41 g/t Au and 1,437 g/t Ag (2,910 g/t AgEq) over 2.4m. “Drilling on the Yessi vein has continued with the dual objectives of firstly testing for the limits of the Yessi vein and secondly infilling the drill spacing to support initial resource estimation and mining studies”.
Minera Alamos Inc., provided an operations update on its Santana mine in Sonora. The company is progressing with the operational ramp-up at its Santana gold mine in Sonora, Mexico. The contractor has mobilized at the mine site, preparing for mining activity at the Nicho Main zone. Equipment maintenance and road preparation are underway to enhance operational flexibility. New sampling procedures and controls are being implemented to optimize conditions for the Nicho Main zone, with a focus on maximizing gold recoveries. The company is also testing a new dust suppressant system to improve air quality and reduce water consumption. Overall, the mining plans at the Nicho Main zone aim to increase mining and stacking activities, with initial benefits expected in Q3 of 2024.
Prime Mining Corp., reported drilling results from its Los Reyes project in Sinaloa. These results are from 2024 drilling at the Las Primas generative target. Highlights include (true widths reported) holes 24LP-30 with 0.8 g/t Au and 75 g/t Ag (1.77 g/t AuEq) over 9.6m, including 1.73 g/t Au and 182 g/t Ag (4.08 g/t AuEq) over 2.8m, plus 1.09 g/t Au and 96 g/t Ag (2.33 g/t AuEq) over 2.2m, including 1.49 g/t Au and 129 g/t Ag (3.16 g/t AuEq) over 1.3m, plus 1.26 g/t Au and 75 g/t Ag (2.23 g/t AuEq) over 5.7m, including 4.99 g/t Au and 278 g/t Ag (8.59 g/t AuEq) over 1.2m, plus 2.22 g/t Au and 187 g/t Ag (4.64 g/t AuEq) over 3m, plus 4.07 g/t Au and 598 g/t Ag (11.81 g/t AuEq) over 3m, including 6.77 g/t Au and 1,007 g/t Ag (19.8 g/t AuEq) over 1.7m; hole 24LP-33 with 0.58 g/t Au and 53 g/t Ag (1.27 g/t AuEq) over 7m, including 1.6 g/t Au and 201 g/t Ag (4.2 g/t AuEq) over 1.6m, plus 1.44 g/t Au and 153 g/t Ag (3.42 g/t AuEq) over 9.4m, including 1.94 g/t Au and 196 g/t Ag (4.48 g/t AuEq) over 5m, and including 1.57 g/t Au and 201 g/t Ag (4.17 g/t AuEq) over 1.5m, plus 0.92 g/t Au and 80 g/t Ag (1.96 g/t AuEq) over 5.7m, including 2.63 g/t Au and 245 g/t Ag (5.8 g/t AuEq) over 1.6m, plus 0.68 g/t Au and 76 g/t Ag (1.67 g/t AuEq) over 3.8m, including 1.31 g/t Au and 148 g/t Ag (3.23 g/t AuEq) over 1.5; hole 24LP-24 with 0.83 g/t Au and 71 g/t Ag (1.75 g/t AuEq) over 3.7m; and hole 24LP-28 with 1.21 g/t Au and 42 g/t Ag (1.75 g/t AuEq) over 3.8m, including 1.78 g/t Au and 75 g/t Ag (2.75 g/t AuEq) over 2.1m.
Guanajuato Silver Company Ltd., filed updated National Instrument 43-101 technical reports on SEDAR+. The updated technical reports cover the Valenciana, San Ignacio, and El Cubo in Guanajuato, and Topia in Durango.
Silver Tiger Metals Inc., provided an update on the pre-feasibility study drilling program on the Stockwork gold deposit on its El Tigre project in Sonora. Drilling highlights include holes ET-23-527 with 0.55 g/t Au and 17 g/t Ag (0.78 g/t AuEq or 58 g/t AgEq) over 74m, including 0.90 g/t Au and 96 g/t Ag (2.19 g/t AuEq or 164 g/t AgEq) over 9.2m, including 1.04 g/t Au and 5 g/t Ag (1.11 g/t AuEq or 83 g/t AgEq) over 25.2m; hole ET-23-529 with 0.91 g/t Au and 6 g/t Ag (0.99 g/t AuEq or 74 g/t AgEq) over 42.5m, including 1.09 g/t Au and 7 g/t Ag (1.18 g/t AuEq or 89 g/t AgEq) over 33m, including 1.57 g/t Au and 1 g/t Ag (1.58 g/t AuEq or 119 g/t AgEq) over 8m, including 1.27 g/t Au and 11 g/t Ag (1.42 g/t AuEq or 106 g/t AgEq) over 18m; hole ET-23-530 with 0.51 g/t Au and 2 g/t Ag (0.54 g/t AuEq or 41 g/t AgEq) over 10.9m, plus 0.68 g/t Au and 4 g/t Ag (0.73 g/t AuEq or 55 g/t AgEq) over 56.9m, including 0.86 g/t Au and 5 g/t Ag (0.92 g/t AuEq or 69 g/t AgEq) over 27.7m, including 0.93 g/t Au and 6 g/t Ag (1.01 g/t AuEq or 76 g/t AgEq) over 18.7m; and hole ET-23-18 with 0.69 g/t Au and 5 g/t Ag (0.76 g/t AuEq or 57 g/t AgEq) over 19m, plus 0.40 g/t Au and 2 g/t Ag (0.43 g/t AuEq or 32 g/t AgEq) over 35m, plus 0.07 g/t Au and 67 g/t Ag (0.96 g/t AuEq or 72 g/t AgEq) over 16.9m, including 0.2 g/t Au and 487 g/t Ag (6.7 g/t AuEq or 502 g/t AgEq) over 2m, and 0.08 g/t Au and 102 g/t Ag (1.44 g/t AuEq or 108 g/t AgEq) over 3m. Silver Tiger has completed 23,000m of a 25,000m drilling program focused on expanding the Mineral Resource, up-grading the classification, completing metallurgical test work and geotechnical studies as it progresses from an exploration to a development project. The pre-feasibility study progress is on schedule for publication in H2-2024.
Goldgroup Mining Inc., reported drill results from its Cerro Prieto property in Sonora. To date there are 17 core holes in Nueva Esperanza Zone, of which 8 core holes have no economic value. Drilling highlights are shown in the table below:

Impact Silver Corp., reported results from its ongoing drilling program at the Tres Amigos Zone at its Plomosas mine, Chihuahua. Drilling highlights include holes TASC-24-28 with 10.2% Zn, 0.5% Pb, and 8 g/t Ag over 8.6m, including 14.7% Zn, 0.7% Pb, and 11 g/t Ag over 5.5m, including 23.6% Zn, 0.8% Pb, and 15 g/t Ag over 2.6m, including 30.1% Zn, 0.9% Pb, and 14 g/t Ag over 1.1m; hole TASC-24-29 with 10.5% Zn, 5.5% Pb, and 32 g/t Ag over 1.85m, including 17.9% Zn, 10.2% Pb and 5 g/t Ag over 1.5m; and hole TASC-24-32 with 4.2% Zn, 2.4% Pb, and 13 g/t Ag over 11.7m, including 30.1% Zn, 18% Pb, and 84 g/t Ag over 0.8m. “The Tres Amigos Zone remains open for expansion and drilling is continuing. High priority targets have been identified for drilling elsewhere on the property”.

ON DEALS AND CORPORATE ISSUES

Quetzal Copper Corp., announced the acquisition of Las Cristinas project, Chihuahua. The company entered into an agreement with Polaris Resources S.A. de C.V. (Property Vendors), to acquire all the issued and outstanding shares of Polaris and must make a USD $50K payment to Polaris by April 9, 2025. Quetzal will also assume the responsibility to make the underlying option payments on the Cristinas Project to the Property Vendors as follows: (i) cash payments of USD $100K on each of May 12, 2024, May 12, 2025, and May 12, 2026, to the Vendors; (ii) the issuance of USD $500K worth of common shares of Quetzal on each of May 12, 2025, May 12, 2026, and May 12, 2027, to the Vendors; and (iii) complete USD $1M in exploration on the Cristinas Project on or before December 31, 2025.
Xali Gold Corp., signed a letter of intent (LOI) to enter a purchase agreement with Kappes, Cassiday & Associates (KCA) on the Mexican Mine Tailings Reprocessing Project at El Oro in Mexico State. In order to earn 100% interest in the El Oro Tailings Project, KCA has agreed to pay Xali Gold USD $25K on signing; an additional USD $25K three months after signing the LOI agreement; and USD $!00K six months after signing the LOI agreement. This agreement entails royalty payments, with KCA paying Xali Gold a gross royalty of 4% of sales income from gold and silver produced, with the option to buy a 1% royalty for USD $1M. KCA will also make minimum royalty payments until a total of USD $1M has been paid to Xali Gold. Additionally, KCA will pay the Municipality of El Oro an 8% Net Profits Interest on production. The project contains significant inferred resources of gold and silver. The agreement allows Xali Gold to pay outstanding mineral rights fees and fund exploration at the El Oro Project.
Solaris Resources Inc., received approval to list its common shares on the New York Stock Exchange (NYSE) under the symbol “SLSR”. Concurrent with the start of trading on the NYSE, the company’s common shares will cease trading on the OTCQB Venture Market (La Verde property, Michoacan).
Silver Bull Resources Inc., reported results from its annual general meeting of shareholders (Sierra Mojada project, Coahuila).
Endeavour Silver Corp., announced the nomination of a new member to its Board of Directors (Terronera, Jalisco).

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, quartz vein in an intermediate sulphidation epithermal vein system in a project in Sonora, Mexico. Photo taken by Miguel A Heredia.

The Mining and Exploration News in Mexico: Highlights on the Fourth Week of March 2024

March 31, 2024 / Gambusino Prospector / Leave a comment

By Jorge Cirett

During the 13^thweek of the year (March 25^th to March 31^st, 2024), companies working in Mexico posted at least 21 press releases. Five companies released results for the last quarter/full-year 2023. Two companies announced financing rounds for a total of C$9.8 M, while one more filed a short form base shelf prospectus to raise up to C$40 M. Two companies released updated reserve and resource estimates for its operations. Three companies announced appointments to their boards, one is informing on a royalty spinout, one company announced the agreement to acquire another company with two operating mines in Mexico and one more announced the acquisition of a significant property in Sinaloa. A company with three precious metal mines in Mexico is commissioning a mint in Nevada. ON MEXICO ISSUES, no relevant news. ON EXPLORATION, no relevant news. ON MINING, Prime Mining, Alamos Gold, Discovery Silver, Fortuna Silver, Gold Royalty Corp and Americas Gold and Silver presented results for Q4 and full year 2023. ON FINANCING, Americas Gold and Silver raised C$7.8 M, and Capitan Silver increased its offering to C$2 M. Kootenay Silver filed a short form base shelf prospectus to make offering for up to C$40 M in 25 months. ON RESOURCES AND DEVELOPMENT, Mag Silver and Torex Gold released new reserve and resource estimates for Juanicipio (in Zacatecas) and the Morelos Complex (in Guerrero) respectively. ON DEALS AND CORPORATE ISSUES, Vizsla Silver is arranging the distribution of Vizsla Silver Royalties shares to its shareholders. Orex Minerals, GoGold Resources and Fresnillo plc announced resignations and appointments to their boards. Alamos Gold is acquiring Argonaut Gold. Vizsla Silver is acquiring the large La Garra-San Dimas project in Sinaloa. First Majestic Silver commissioned a mint in Nevada. ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUES

No Relevant News.

ON EXPLORATION

No Relevant News.

ON MINING

Prime Mining Corp. reported its operating and financial results for 2023. A federal judge has granted its applications for Federal protection (Amparos) to conduct its activities under the previous (1994) mining law. By the end of 2023 the company held $33.8 M in cash. Prime is to drill 40,000 m in 2024, focusing in resource development and discovery potential. Five drills are currently active at the site (Los Reyes, Sinaloa).
Alamos Gold Inc. filed its annual information form and 2023 annual report, including its audited financial statements for 2023, with the SEC on EDGAR as well as on SEDAR+ (Mulatos, Sonora).
Discovery Silver Corp. announced financial results for 2023, and updated on work at its Cordero project in Chihuahua since Q4 2023. The release highlighted the feasibility study (FS) results on Cordero, which include a 19-year mine life producing 33 M Oz AgEq in concentrate per year over the life of mine (LOM), at an AISC of US$13.50 per Oz AgEq over the LOM, with a reserve base of 302 M Oz Ag, 840 K Oz Au, 3.0 B Lb Pb, 5.2 B Lb Zn, not including 240 M tonnes of resources outside the feasibility pit. The company had cash and cash equivalents of $58.9 M by the end of 2023.
Fortuna Silver Mines Inc. filed its fiscal 2023 annual report on Form 40-F with the U.S. Securities and Exchange Commission (San José, Oaxaca).
Gold Royalty Corp. filed its operating and financial results for Q4 and full year 2023. During the year the company received $3.05 M in revenue, with an adjusted net earning loss of $3.9 M while receiving 2,703 Oz AuEq. For 2024 Gold Royalty, which owns 340 royalties, including five producing projects, expects to receive between 5 K and 5.6 K Oz AuEq, roughly US$10 to US$11.2 M (Royalty on Cozamin, Zacatecas).
Americas Gold and Silver Corp. reported consolidated financial and operational results for 2023, including figures for its Mexican operations. At Cosalá, in Sinaloa, 1.1 M Oz Ag, 11.5 M Lb Pb and 34.1 M Lb Zn were produced at cash cost $8.47 per Oz Ag. “The Company is in the final stages of negotiation with a global metal trader to provide concentrate prepayment financing for the capital requirements at its 100%-owned El Cajón and Zone 120 silver-copper project (“EC120 Project”) at the Cosalá Operations. The Company expects to close this financing in Q2-2024 with the goal to be producing higher-grade silver-copper concentrates by the end of 2024”.

ON FINANCING

Americas Gold and Silver Corp. closed its offering for total aggregate gross proceeds of C$7.8 M (Cosalá, Sinaloa).
Capitan Silver Corp. increased its non-brokered private placement from C$1.5 M to C$2 M (Cruz de Plata, Durango).
Kootenay Silver Inc. obtained receipt for a final short form base shelf prospectus with the securities regulators in each province and territory of Canada. The filing allows Kootenay to make offerings for up to a maximum of C$40 M during the 25-month period over which the base shelf prospectus is effective (Columba, Chihuahua).

ON RESOURCES AND DEVELOPMENT

Mag Silver Corp. filed on SEDAR the mineral resource and mineral reserves NI-43-101 compliant technical report for the Juanicipio mine in Zacatecas (44% MAG, 56% Fresnillo plc, mine operator). Juanicipio holds 17 M tonnes @1.86 gpt Au, 310 gpt Ag, 2.89% Pb, 5.32% Zn, containing 1.02 M Oz Au, 169.2 M Oz Ag, 492 K tonnes Pb, 904 K tonnes Zn in measured and indicated resources, and 14 M tonnes @ 1.06 gpt Au, 236 gpt Ag, 2.41% Pb, 6.12% Zn, containing 480 K Oz Au, 106.7 M Oz Ag, 339 K tonnes Pb, 860 K tonnes Zn in inferred resources. The Juanicipio plant achieved the designed 4,000 tpd throughput on September 2023.
Torex Gold Resources Inc. reported year-end 2023 mineral reserves and resources for the Morelos Complex in Guerrero. The complex includes the El Limón Guajes (ELG) mine open pits and underground, advanced development phase Media Luna deposit, pre-development phase EPO deposit and surface stockpiles. As can be seen on the table below, the total resources (measured and indicated resources plus inferred resources) add up to almost 10 M Oz AuEq. “Since releasing the March 2022 Technical Report, we have increased our Measured and Indicated resource 1 base by 1,979 koz AuEq (prior to mined depletion) over the last two years and strengthened the production profile by increasing our Proven and Probable reserves by 719 koz AuEq (prior to processed depletion) over the same period.”

ON DEALS AND CORPORATE ISSUES

Vizsla Silver Corp. announced an arrangement agreement with Vizsla Silver Royalties Corp. under which Vizsla Silver shareholders will vote on a special meeting where the distribution of common shares and warrants from Vizsla Royalties are to be arranged on a 1/3 basis. Vizsla Silver also entered into an equity distribution agreement with Canaccord Genuity Corp. in respect of an at-the-market equity program, which allows the company to issue up to C$50 M of Vizsla Silver shares from treasury to the public. “The ATM Program is intended to provide the Company with additional financing flexibility should it be required in the future. The volume and timing of distributions under the ATM Program, if any, will be determined in the Company’s sole discretion” (Panuco, Sinaloa).
Orex Minerals Inc. announced the resignation of David Gunning from the board, and the appointment of Adam Cegielski as independent chair of the company’s board of directors (Valenciana, Zacatecas).
GoGold Resources Inc. announced the re-election of members of the board on the annual and special meeting of shareholders held on March 26, 2024 (Los Ricos South, Jalisco).
Alamos Gold Inc. entered into a definitive agreement on which Alamos is to acquire all of the issued and outstanding shares of Argonaut Gold Inc. By this agreement Alamos is acquiring the Magino mine, located adjacent to its Island Gold mine in Ontario. Concurrently, Argonaut’s assets in USA and Mexico will be spun out to its existing shareholders as a newly created junior gold producer (“SpinCo”), which will own the Florida Canyon mine in USA, and the El Castillo Complex in Durango, La Colorada in Sonora, and Cerro del Gallo in Guanajuato. “Upon SpinCo going public, Alamos has agreed to subscribe for a further US$10 million to obtain a 19.9% interest in SpinCo”.
Vizsla Silver Corp. entered into an agreement to acquire the past-producing La Garra-Metates district in Sinaloa. The 16,962 Ha land package is between the San Dimas and Vizsla’s Panuco district, and exhibits low sufidation epithermal vein systems that have returned high grades over kilometers of strike. Vizsla entered into a share purchase agreement in March 27, 2024, with Exploradora Minera La Hacienda SA de CV and Manuel de Jesus Hernandez Tovar, with a cash payment of non-binding LOI of US$100 K, 258 K shares on signing; US$150 K cash and 476.2 K shares at three months; US$275 K cash, 535.7 K shares at six months; US$225 K, 595.2 K shares at nine months; US$350 K cash, 714.3 K shares at 12 months; US$300 K cash, 833.3 K shares at 15 months; US$375 K cash, 962.4 K shares at 18 months and US$1.3 M in cash, 1.19 M shares at 24 months. Vizsla is to pay back taxes on the concessions and the sellers will retain a 1% royalty that can be bought back for US$750 K at any time. “The finder’s fees is 2% NSR of the project payable to an arm’s length Mexican Company”.
Fresnillo plc. announced that Ms Bárbara Garza Lagüera and Mr Juan Bordes intend to stand down from the board at the next annual general meeting in May of 2024. “The Board has, therefore, invited Mr Charlie Jacobs to continue on the Board as a Non-Independent NonExecutive Director” (Fresnillo, Zacatecas).
First Majestic Silver Corp. completed the commissioning and commencement of bullion sales from its minting facility, First Mint LLC., located in Nevada. “The inaugural production run of bullion bars will be commemorated and sold as collectibles, complete with certificates of authenticity and exclusive packaging. These limited edition “First Strike” products will include 1,000 one-kilogram bars, 2,500 ten-ounce bars, and 5,000 five-ounce bars” (San Dimas, Durango).

ON SOCIAL RESPONSIBILITY

No Relevant News.

On the image below: Specularite-quartz matrix breccia in a project in the Sonoran Desert. Picture by Jorge Cirett.

VIZSLA SILVER AGREES TO ACQUIRE NEWLY CONSOLIDATED PAST-PRODUCING SILVER DISTRICT IN THE EMERGING SILVER-GOLD-RICH PANUCO – SAN DIMAS CORRIDOR IN MEXICO

March 28, 2024 / gambusinoprospectormexico / Leave a comment

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The Mining and Exploration News in Mexico: Highlights on the Second Week of March 2024

March 17, 2024 / Gambusino Prospector / Leave a comment

By Jorge Cirett

During the 11^thweek of the year (March 11^th to March 17^th, 2024), companies working in Mexico posted at least 26 press releases. Three companies reported on exploration at its properties while three more released results for the last quarter/full-year. Four companies announced financing rounds for a total of C$7.8 M, one is delisting from one Stock Exchange and listing in another one, another is extending its warrants expiry date and one more is granting stock options. One company informed on work at its advanced property. One company obtained a hard-sought community authorization for exploration activities, while one other is stopping activities in Mexico. A company announced an appointment to the board and one more the optioning of a property. One company is to process third-party material at its mill, one is cancelling an option and its related financing round and one more is updating on its legal action against the Mexican government. ON MEXICO ISSUES, a couple of judicial resolutions set the application of the new mining law on hold. The anti-mining stance by the federal government is bearing fruit, pushing mining investment out of the country. ON EXPLORATION, in Sonora, Colibri Resource updated on work at its EP project. In Chihuahua, Kootenay Silver is to drill at Columba. In Durango, Silver Dollar is re-evaluating the Nora project. ON FINANCING, three companies informed on the opening or closing of financing rounds: Regency Silver (C$250 K), Reyna Silver (C$3.2 M), Defiance Silver (C$2.6 M) Guanajuato Silver granted options to directors, management and consultants. Pantera Silver is to extend the expiry date of warrants. Almaden Minerals is to change its listing stock exchange. ON RESOURCES AND DEVELOPMENT, Atacama Copper started drilling at Cristina, in Chihuahua, focusing on high-grade resources. ON DEALS AND CORPORATE ISSUES, USAntimony is closing operations in Mexico. Vortex Metal obtained community exploration approbation. Sonoro Gold announced an appointment to the board. Riverside Resources and Fortuna Silver signed an option agreement on the Cecilia project, in Sonora. CMC Metals dropped the option on the Gavilanes project and the concurrent financing round on lack of exploration permit. Guanajuato Silver Company signed a new third-party processing agreement. Almaden Minerals and Almadex Minerals updated on its request for consultation under the CPTPP. ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUES

According to the newspaper La Jornada a judge upheld a partial suspension on the reforms to the mining law, specifically on the article that disposes all mining concession applications not yet titled. First Majestic Silver promoted the appeal on grounds of unconstitutionality.
The Poder Judicial Federal suspended multiple parts of the reform to the Mining Law of last May 2023, as these are likely unconstitutional. By Mid-April the Supreme Court has to discuss if the reforms are invalidated because of violations to the legislative process, although the project on the Mining Law still has to be included on the minute. Some points addressed in the reform include the reduction from 50 to 30 years of duration of the concession, auctioning of mining concessions, community consultation and retribution and water use limitations among others.
The Mexican government mining policies are bearing fruit. The Mining Law changes of last year (likely to be soon rejected by the Supreme Court), the reluctance by the environmental agency (SEMARNAT) to reauthorize mining permits, the lack of permits for open pit mining, the unwillingness to end illegal blockades and the general anti-mining stance of the current federal government are working as expected, deterring mining investment and pushing the more disadvantaged players, junior foreign companies, out of the country. Just this week USAntimony is closing operations in Mexico, CMC Metals is bailing out of a deal to option a property because of SEMARNAT’s failure to extend an exploration permit and Almaden Minerals informed on the international proceedings regarding its Ixtaca project in Puebla. Those companies are adding to the likes of Fortune Silver, Argonaut Gold, Riverside Resources and Golden Minerals, among others, that have made public during this quarter their reassessment of continuing operations in Mexico or have current arbitration cases, like Silver Bull Resources on its Sierra Mojada project in Coahuila. How much this scenery is to change depends on when/if the Mining Law changes are repealed and the open pit mining ban scraped.

ON EXPLORATION

Silver Dollar Resources Inc. commenced its re-evaluation of the Nora property in Durango during last February, with the collection of 72 surface samples on the East, West and South anomalies, as well as from the main Candy structure. Rock samples on the Candy structure attempt to replicate the results from the previous operator, and will be reported when received.
Colibri Resource Corp. updated on exploration activities at its EP Gold project in Sonora. Work includes an airborne magnetic survey covering 1,385 ha at a height of 35 m and a 50 m spacing between flight lines. Similar equipment and survey parameters with previous surveys allowed for the combination of the datasets. Geological mapping completed on selected areas with 64 rock samples collected as well as 23 rocks for thin section petrography. Interpretation of geological, geochemical and geophysical surveys highlighted the importance of north-northeast trending structures, and the recognition of easterly trending ones. Colibri has identified 14 target areas, prioritizing four of these for drilling.
Kootenay Silver Inc. announced the initiation of the Q1 diamond drill program at Columba, in Chihuahua. The program envisages 15 to 17 holes for 5,000 m designed to expand upon previous intercepts along the D-Vein target. “The current drilling program is designed to extend the D-Vein in preparation of a follow up program of likely 15,000 meters, aimed to delineate a maiden resource expected in late 2024 which is dependent on additional drilling beyond the 5000 meter program and the financing it requires.”

ON MINING

Endeavour Silver Corp. announced financial and operating results for Q4 and full-year 2023. During the year the company produced 5.7 M Oz Ag, 37,858 Oz Au, or 8.7 M Oz AgEq, for a total revenue of $205 M, $37 M in operating cash flow before working capital changes and net income of $6.1 M. Consolidated cash cost net of by-product credits was $13.49 per Oz Ag, and an AISC of $22.93 per Oz Ag, impacted by higher costs. During the year Bolañitos in Guanajuato processed 441 K tonnes to produce 537.5 K Oz Ag, while Guanaceví in Durango processed 433.4 K tonnes to produce 5.09 M Oz Ag. Construction of the Terronera mine in Jalisco continues on schedule. Cash position of $35.3 M and $42.5 M in working capital.
SilverCrest Metals Inc. released financial results for Q4 and year 2023. During the year Las Chispas mine in Sonora mined 300.9 K tonnes, processed 431.4 K tonnes at a rate of 877 tpd, with ore averaging 4.39 gpt Au, 423 gpt Ag (or 771 gpt AgEq), recovering 98.1% Au, 96.5% Ag, to produce 59,700 Oz Au, 5.65 M Oz Ag (or 10.4 M Oz AgEq) at cash cost $7.73 per Oz AgEq. In 2023 the company completed 13.2 km of horizontal and vertical underground development. During the year SilverCrest generated $116.7 M in net earnings and free cash flow was $121.1 M, holding cash and cash equivalents of $86 M by the end of the year.
Gold Resource Corp. announced full-year operational results from its Don David Gold Mine in Oaxaca. During Q4 2023 the mine milled 111.2 K tonnes @ 1.44 gpt Au, 85 gpt Ag, 0.39% Cu, 1.39% Pb, 2.95% Zn to produce 4,077 Oz Au, 282.5 K Oz Ag, 341 Cu tonnes, 1,072 Pb tonnes, 2,884 Zn tonnes in the quarter, adding up to 18,534 Oz Au, 1.04 M Oz Ag (31,085 Oz AuEq). For 2024 the guidance is to produce 13,000 to 15,000 Oz Au, 1.25 to 1.4 M Oz Ag, (29,500 to 31,500 Oz AuEq) at cash cost $1,450 to $1,650 per Oz AuEq. Negotiations during Q4 2023 reduced royalties from 5% to 3% on the La Tehuana, El Aguila, and Mina El Aire mining concessions.

ON FINANCING

Regency Silver Corp. closed further $253 K of a previously announced non-brokered placement of $800 K. The company also granted stock options to acquire 1.7 M of common shares to directors, officers, employees and consultants (Dios Padre, Sonora).
Pantera Silvera Corp. applied to extend the expiry date of 11.8 M share purchase warrants to March 11, 2025 (Nuevo Taxco, Guerrero).
Reyna Silver Corp. increased the size of its non-brokered listed issuer financing exemption (“LIFE”) announced on Feb 14, 2024, and its previously announced concurrent non-brokered private placement. The amended LIFE offering is to raise up to $3.2 M (Guigui, Chihuahua).
Almaden Minerals Ltd. informed that because of the low price of its share (due to the dispute with the Mexican government. – See below) the company will voluntarily delist from the NYSE and parallelly seek a listing on the OTCQB Marketplace (Ixtaca, Puebla).
Defiance Silver Corp. closed the final tranche of its previously announced non-brokered private placement for aggregate gross proceeds of C$2.6 M. Windermere Capital Fund SPC – Breakaway Strategic Resource SP, an insider of the company purchased C$1.2 M in shares, taking its ownership to a total of 41.5 M common shares and 3.05 M warrants. (Zacatecas, Zacatecas).
Guanajuato Silver Company Ltd. granted stock options and restricted share units to select officers, directors, employees and consultants (El Cubo, Guanajuato).
Sierra Madre Gold and Silver Ltd. upsized and closed its previously announced non-brokered private placement financing raising total gross proceeds of $1 M (La Guitarra, Estado de Mexico).

ON RESOURCES AND DEVELOPMENT

Atacama Copper Corp. started a 10,000 m diamond drilling campaign at its Cristina project in Chihuahua. “The Cristina project consists of multiple outcropping quartz veins that are frequently greater than 10 metre in width and extend for a currently known strike length of up to five kilometres. At least four parallel mineralized vein zones have been mapped and sampled to date”. Epithermal to mesothermal mineralization is known to occur over 1,100 m of vertical range, hosted by andesitic volcanic rocks of the Lower Volcanic Group and locally covered by Upper Volcanic Group rhyolitic rocks. Current open pit constrained resources are centered on the Guadalupe vein, comprising 752 K Oz AuEq in indicated resources and 777 K Oz AuEq in inferred resources. Atacama is trying to define an underground higher-grade resource.

ON DEALS AND CORPORATE ISSUES

United States Antimony Corp. announced plans to discontinue all Latin America operational activities and close its US Antimony Mexico, S.A. de C.V. (USAMSA) subsidiary, terminating the majority of its employees on March 11, 2024, immediately. “The Company intends to possibly sell or lease its USAMSA entity, operations, or assets over the next year and has initiated an active search for buyers or leasing opportunities of its operations and/or existing assets.” United States Antimony will continue to hold its existing Los Juarez mining claims in Queretaro. The reasons stated to close include high operating costs, new stringent Mexican mining laws, safety concerns, and the inability to collect back taxes from the Mexican government.
Vortex Metals Inc. announced the authorization by the Santiago Astata Agrarian Community to Vortex to carry on mineral exploration activities, including drilling, at its Zaachila project in Oaxaca. “Furthermore, the company has committed to forming an environmental monitoring committee with active community participation to oversee the activities and ensure environmental protection throughout the exploration program”.
Sonoro Gold Corp. appointed Katherine Reagan to the board of directors, in addition to her position of vice president of corporate development and corporate secretary (Cerro Caliche, Sonora).
Riverside Resources Inc. signed an option agreement with Fortuna Silver on Riverside’s Cecilia project in Sonora. The option term agreement envisages 5 years to earn 51% by spending US3.75 M, delivery of $150 K in cash payments and at least $500 K spent on work in the first year. Fortuna paid Riverside the initial $25 K on signing, and is to pay $25 K on filing of the agreement in Mexico, and further $25 K per year, with Riverside acting as operator charging a 10% management fee on top of work spending. Upon earning 51%, Fortuna may earn 80% by spending an additional $2.25 M in work over 3 years. After earning 80%, Fortuna might elect within 120 days to pay Riverside $5 M cash and grant Riverside a 2% NSR where 1% NSR may be purchased for $3 M, with Fortuna earning 100% in the project. The low sulfidation Au-Ag epithermal mineralization is associated to at least two nested dome complexes in sedimentary rocks.
CMC Metals Ltd. announced the cancellation of the $1.2 M private placement previously announced due to the failure, of the property owner of the Ag-Au Gavilanes project in Durango, to achieve an extension of the exploration permit with SEMARNAT (Mexico’s environmental Agency). “CMC has subsequently served notice of its intent to terminate the agreement with Sailfish Royalty Corp. to acquire the Gavilanes project but remains interested in securing exclusivity rights until October 2024.” The company intends to focus on its flagship Silverknife property in British Columbia.
Guanajuato Silver Company Ltd. announced the signing of a new third-party processing agreement with REM Marfil S.A. de C.V., a local Guanajuato based company. Under the agreement mineralized material from the past producing La Providencia mine is to be processed at the El Cubo and Cata processing facilities in Guanajuato. “The Agreement covers the processing of an initial 80,000 dry metric tonnes of mineralized material with a minimum head grade of 0.43 grams per tonne gold and 192 grams per tonne silver.”
Almaden Minerals Ltd. and Almadex Minerals Ltd. updated on its Request for Consultation delivered to the Mexican government in December 2023 according to the Comprehensive and Progressive Agreement of for Trans-Pacific Partnership (CPTPP). The Mexican government acknowledged receipt but never proposed dates for a consultation meeting. On March 14, 2024, Almaden delivered to Mexico written notice of its intention to submit a claim to arbitration under the CPTPP. “The damages relating to the Almaden and Almadex Claim will be for no less than US$200 million, in the aggregate. The Notice enables the Company to initiate arbitration should an amicable resolution of the dispute with the Mexican government not be reached.”

ON SOCIAL RESPONSIBILITY

No Relevant News.

On the image below: Specularite-quartz matrix breccia in a project in the Sonoran Desert. Picture by Jorge Cirett.

Riverside Resources and Fortuna Silver Sign Exploration Earn-In Option Agreement for the Cecilia Project Sonora, Mexico

March 13, 2024 / gambusinoprospectormexico / Leave a comment

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The Mining and Exploration News in Mexico: Highlights on the Fifth Week of February 2024

March 3, 2024 / Gambusino Prospector / Leave a comment

By Jorge Cirett

During the 9^thweek of the year (February 26^th to March 3^rd, 2024), companies working in Mexico posted at least 23 news releases. One company reported on exploration at its property, one published its guidance for 2024, one released production results for the last quarter and one is stopping mining operations. Four companies announced financing rounds for a total of C$5.8 M, while one more announced a C$34 M financing. One company declared a dividend and one more the increase of its loan credit facility. One company informed on work at its advanced property and one more updated on ongoing development at a new property. One company is disposing of an interesting property, two announced director’s appointments and one more informed on its litigation process against the Mexican government. ON MEXICO ISSUES, the head of the Economy Secretariat announced the acquisition of the remaining 49% of the company producing salt from coastal flats in Baja California Sur. The first work pane under T-MEC was installed to review labor matters on a Zacatecas mine. ON EXPLORATION, in Sonora, Tocvan Ventures is to commence drilling at Pilar. ON MINING, Argonaut Gold announced its production guidance for 2024. Starcore International Mines released production results for the quarter. Golden Minerals is stopping mining at Velardeña, in Durango, and evaluating its alternatives. ON FINANCING, five companies informed on the opening or closing of financing rounds: Sierra Madre Gold and Silver (C$1 M), CMC Metals (C$1.2 M), Reyna Silver (C$2.5 M + $500 K), Defiance Silver (C$1.09 M), Vizsla Silver (C$34 M). Alamos Gold declared a quarterly dividend. Guanajuato Silver Company announced the increase of its gold loan credit facility to US$13.3 M. Aztec Minerals granted options to directors, management and consultants. ON RESOURCES AND DEVELOPMENT, Torex Gold reported good drilling intercepts on brownfields and near mine exploration on several deposits at its Limón Guajes property in Guerrero. Avino Silver updated on development work at La Preciosa, in Durango. ON DEALS AND CORPORATE ISSUES, Ranchero Gold is disposing of its Santa Daniela property in Sonora. Silver Bull updated on the arbitration process on its dispute with the Mexican government. US Antimony and Hecla Mining announced director’s appointments. ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUES

Raquel Buenrostro, head of the Economy Secretariat (Secretaría de Economía) announced the nationalization of Exportadora de Sal, the company that produces salt from coastal plains in Guerrero Negro, Baja California Sur, by buying the 49% stake of the Japanese Mitsubishi company (In the 1980’s, the Mexican government managed even businesses that sold bicycles, the actual administration seems adamant in getting back to those times).
The governments of the United States, Canada and Mexico installed the first work pane since the signature of the T-MEC, to resolve if there is or not a violation of workers’ rights at Grupo Mexico’s San Martín mine, in Zacatecas.

ON EXPLORATION

Tocvan Ventures Corp. is set to commence drilling at its Pilar project in Sonora. After a year of focusing on bulk sampling and land consolidation, the company is to begin systematic drilling for resource definition and additional targeting. “The initial focus will be on infill and step-out targeting within and adjacent to the Pilar Main Zone including where previous drill campaigns successfully discovered the southern extension of the Main Zone, returning 108.6 meters of 0.8 g/t Au, including 9.4 meters of 7.6 g/t Au and 5 g/t Ag.”

ON MINING

Argonaut Gold Inc. announced its 2024 guidance for production, cost per ounce and exploration expenditure forecast, including figures for its Mexican operations. At La Colorada, in Sonora, Argonaut Gold is aiming to produce 5 to 6 K Oz Au on residual operations, at $1,600 to $1,700 cash cost and an AISC of $1,600 to $1,700 per Oz AuEq. At San Agustín, in Durango, Argonaut intends to mine 6.8 to 7.1 M tonnes of ore grading 0.45 to 0.50 gpt Au, recovering 37% to 39% Au to produce 35K to 40 K Oz Au at cash cost $1,650 to $1,750 per Oz Au and an AISC of $1,800 to $1,900 per Oz Au. Argonaut’s Mexican operations are expected to be cash flow breakeven. “A financial advisor has been appointed to assess strategic alternatives for the Mexican operations, including the sale of one or more of the assets”.
Starcore International Mines Ltd. announced production results for the Q3 ended January 2024, at its San Martin mine in Queretaro. During the period 52.7 K tonnes were milled, grading 1.58 gpt Au, 14.6 gpt Ag, recovering 89.1% Au, 50.3% Ag, to produce 2,514 Oz AuEq.
Golden Minerals Co. announced that it has elected to stop operations at its Velardeña properties in Durango. The company restarted mining operations in December 2023 with the goal of achieving positive cash flow during the first half of 2024. As the initial performance of the mine and processing plant has not achieved the results projected, the decision to cease mining operations was reached. Golden intends to “evaluate potential alternatives for the Velardeña Properties, which may include a sale of properties or winding up of certain of the Company’s Mexico operations.”

ON FINANCING

Sierra Madre Gold and Silver Ltd. announced a non-brokered private placement aiming to raise $1 M “with an existing long-term institutional shareholder”. Net proceeds are to be used to fund the care and maintenance on, and the mine restart plan at La Guitarra mine, in Estado de Mexico.
CMC Metals Ltd. is to carry a non-brokered private placement for aggregate gross proceeds of up to $1.2 M (Gavilanes, Durango).
Reyna Silver Corp. increased the size of its non-brokered private listed issuer financing exemption (LIFE) private placement previously announced due to investor demand, to go from $1.5 M to $2.5 M. The company is also completing a concurrent non-brokered private placement for gross proceeds of up $500 K to purchasers pursuant to other applicable exemptions under NI 45-106 (Guigui, Chihuahua).
Defiance Silver Corp. closed the first tranche of its previously announced private placement, for aggregate proceeds of C$1.09 M. Defiance also extinguished a debt for shares in the amount of $46.6 K (Zacatecas, Zacatecas).
Alamos Gold Inc. declared a quarterly dividend of US$0.025 per common share (Mulatos, Sonora).
Vizsla Silver Corp. completed its previously bought deal prospectus for aggregate gross proceeds of C$34 M, which includes the exercise in full of the underwriter’s over-allotment option for 3 M offered shares. The company paid to the underwriter a cash commission equal to 6% of the gross proceeds raised under the Offering. (Panuco, Sinaloa).
Guanajuato Silver Company Ltd. announced that the previously arranged US$7.5 M Gold Loan Credit Facility financing with Ocean Partners UK Ltd. has been increased to US$13.3 M. “The loan facility is for a term of 36 months from the date of the initial draw; it is repayable in equal fixed monthly installments of gold totalling approximately 338 troy ounces per month for a period of 30 months following a six-month grace period from the date of the initial draw.” The company also completed its shares-for-debt transaction totaling C$414.7 K by issuing shares, including those to three non-arms-length parties to settle for C$40 K (El Cubo mine complex, Valenciana mines complex, San Ignacio, in Guanajuato).
Aztec Minerals Corp. granted 3.27 M stock options to directors, management and consultants of the company (Cervantes, Sonora).

ON RESOURCES AND DEVELOPMENT

Torex Gold Resources Inc. released results from its 2023 drilling program at El Limón Guajes in Guerrero. Highlighted core length intervals comprise 22.91 m @ 10.94 gpt Au, 12 gpt Ag, 0.41% Cu; 7.50 m @ 8.09 gpt Au, 119 gpt Ag, 2.12% Cu At El Limón Sur Trend, 37.08 m @ 14.04 gpt Au, 9 gpt Ag, 0.38% Cu; 20.57 m @ 8.22 gpt Au, 29 gpt Ag, 1.02% Cu at El Limón Deep Trend, 12.33 m @ 8.92 gpt Au, 7 gpt Ag, 0.4% Cu; 4.66 m @ 2.13 gpt Au, 37 gpt Ag, 2.05% Cu at the Sub-Sill Trend and 4.00 m @ 11.78 gpt Au, 140 gpt Ag, 0.14% Cu; 3.55 m @ 10.07 gpt Au, 36 gpt Ag, 0.87% Cu at El Limón West Trend. During 2023, 60,699 m were drilled in 248 holes at El Limón Guajes brownfield and near mine exploration. For 2024, $12 M have been allocated to infill and step-out 54,500 m of drilling, focusing on further exploring the northeast trending structural corridors.
Avino Silver & Gold Mines Ltd. updated on ongoing development work at La Preciosa, in Durango. Current works and prep at the Avino mill include the rehabilitation of the office building, extensive sampling of historic surface mineralized stockpiles, haulage of such stockpiles to the Avino mill complex, reinforcement of walls at the mine entrance and previously developed underground areas and the rehabilitation of a thickener tank. “Once the rehabilitation work on the thickener is complete, production of a silver-gold concentrate from this stockpile material will commence which will be another milestone for the Company.”

ON DEALS AND CORPORATE ISSUES

Ranchero Gold Corp. approved on a special meeting of shareholders the disposition by its subsidiary the interest in four mining concessions covering the Santa Daniela property in Sonora. The disposition is subject to TSX approval, and the remaining US$1.9 M near-term cash payment will only be paid when the concessions have been transferred to Alamos Gold Inc.
United States Antimony Corp. added Joseph A. Carrabba as an independent director to its board (Juarez, Queretaro).
Silver Bull Resources Inc. updated on progress with its international arbitration claim against the Mexican government. Advances include the appointment of a three-person arbitration panel by the International Centre for Settlement of Investment Disputes, with a first session on February 13, 2024. A quantum expert was engaged by the company to assess its claims. Silver Bull is to file its Memorial in May 2024, with the Arbitration hearing slated for October 2025 (Sierra Mojada, Coahuila).
Hecla Mining Co. announced the appointment of Mark P. Board as a director, effective February 23, 2024 (San Sebastián, Durango).

ON SOCIAL RESPONSIBILITY

No Relevant News.

On the image below: subcrop of granitic rocks on a project in the Sonora desert. Picture by Jorge Cirett.

The Mining and Exploration News in Mexico: Highlights on the Third Week of February 2023

February 18, 2024 / Gambusino Prospector / Leave a comment

By Jorge Cirett

During the 7^thweek of the year (February 12^th to February 18^th, 2024), companies working in Mexico posted at least 27 news releases. Two companies reported exploration advances on their properties, two published their outlook for 2024, one released production results for January and one more applied for a mining permit. Five companies announced financing rounds for a total of C$7.25 M, and two more for another $1.6 M. Two companies informed on work at their advanced properties and two more released reserve and resource estimates for their deposits. One company is spinning a royalty to its shareholders, one more informed on the completion of a business combination, another on the signing of an option agreement on a property, one more on the signing of a waiver agreement, another on a director’s appointment and one other about a favorable ruling on its mining concessions. ON MEXICO ISSUES, at least 80% of copper production in Mexico is at stake with the new proposal of the president to forbid open pit mining. ON EXPLORATION, in Sonora, Minaurum updated on its 2024 program for Alamos, Aurifero and Adelita. In Sinaloa, Chesapeake Gold released metallurgical results for its Lucy project. In Guerrero, Minaurum updated on its program for 2024 at its Guerrero Gold Belt and Aurena properties. In Oaxaca, Minaurum updated on its 2024 program at Santa Marta. ON MINING, Avino provided its outlook for 2024 at Avino and La Preciosa. Guanajuato Silver updated on production during January 2024. Infinitum Copper submitted a mining permit for La Adelita. Agnico Eagle released 2023 production figures and its outlook for 2024. ON FINANCING, seven companies informed on the opening or closing of financing rounds: GR Silver (C$670 K), Sonora Desert (C$1 M), Sonoro Gold (C$1 M), Reyna Silver ($1.5 M), Goldgroup Mining (US$100 K), Aztec Minerals (C$1 M), Kootenay Silver (C$3.5 M). ON RESOURCES AND DEVELOPMENT, Endeavour Silver informed on the construction advance at Terronera. Vizsla Silver reported drilling results from Panuco. Silver Dollar informed on exploration advances at La Joya. Fortuna Silver updated mineral reserves and resources at San Jose. Agnico Eagle released reserves ad resources estimates to the end of 2023 for several projects in Mexico. ON DEALS AND CORPORATE ISSUES, Vizsla Silver is spinning royalties from Panuco to its shareholders. Atacama Copper completed its business combination with TCP1. Orex Minerals signed an option to acquire the Valenciana project in Zacatecas. Silver Viper appointed an independent chair to the board of directors. GR Silver signed a waiver and release agreement with Mako Mining. Defiance Silver reported a favorable ruling involving the ownership of several mining concessions. ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUES

Luis H. Vázquez, president of the AIMMGM (Asociación de Ingenieros de Minas, Metalurgistas, y Geólogos de México) stated that the new proposal by the Mexican president to forbid open pit mining in the country endangers at least 80% of copper production in Mexico.

ON EXPLORATION

Chesapeake Gold Corp. released initial metallurgical results from the Lucy project in Sinaloa. Unique composites from four holes underwent CN bottle roll test for 72 hours, with recoveries of 91-97% Au, 40-70% Ag. Assays from core drilling released in October of 2023 returned up to 24 m @ 6.11 gpt Au; 24 m @ 3.95 gpt Au; 30 m @ 2.57 gpt Au. The phase 2 exploration program is underway at the 483 ha Lucy project, program that includes 10 HQ holes totaling 900 m, to extend the identified mineralization along the 500 m skarn corridor.
Minaurum Gold Inc. outlined key objectives for its Alamos, Aurifero and Adelita projects in Sonora, Santa Marta in Oaxaca and Guerrero Gold Belt and Aurena in Guerrero. At Alamos, the company will continue underground rehabilitation, conduct metallurgical testing of primary targets, generate new exploration targets adjacent to the Promontorio and Quintera mines. At Aurifero, a drill program to test targets at depth has been submitted for permitting. At Adelita Infinitum has applied for permits to remove and sale high-grade Cu ore. At Santa Marta a permit application for 3,000 m of drilling has been submitted. At Guerrero Gold Belt and Aurena Minaurum Expects to advance the projects through joint ventures.

ON MINING

Avino Silver & Gold Mines Ltd. provided its outlook for 2024 and a summary of major milestones in 2023. For 2024 the company plans to process 700-750 K tonnes from the Avino mine and stockpiles from La Preciosa, both in Durango, to produce 2.5-2.8 M Oz AgEq. Having most of the mining and development equipment at Avino, minimal upfront capital is expected to be needed to begin mine development at La Preciosa, where the environmental permit has been submitted to the authorities. No drilling is planned for 2024. During 2023 the production from the Avino mine was within the 2.4-2.7 M Oz AgEq estimate, the PFS on the Oxide Tailings project was completed, the dry-stack tailings facility was operational for a year, 7,545 m of drilling were completed at Avino and the company received the ESR (Empresa Socialmente Responsible) award for the second year.
Guanajuato Silver Company Ltd. provided a production update for the month of January 2023. During the month the company mined 56.7 K tonnes and milled 56.7 K tonnes from Topia in Durango, El Cubo, and Cata in Guanajuato and Horcon in Jalisco, with recoveries of 88.7% Au, 88.2% Ag, 89.9% Pb, 81.4% Zn, to produce 1,843 Oz Au, 141.8 K Oz Ag, 279.7 K Lb Pb, 269.3 K Lb Zn (or 329.9 K Oz AgEq). Processing of third-party material added 40.9 K Oz AgEq to total production on the first month of the agreement. Topia produced 85.1 K Oz AgEq, and Horcon 10,183 Oz AgEq. Dewatering of the Villapando area of the El Cubo is opening zones with historical grades of over 350 gpt AgEq.
Infinitum Copper Corp. has applied for a mining permit, at La Adelita in Sonora, to the environmental agency (SEMARNAT). “As mining has traditionally taken place in the Cerro Grande area and the Company expects to access the mineralised body through the existing adit the permitting process is not expected to be overly complex”. A metallurgical test conducted by the SGM (Servicio Geológico Mexicano) through conventional flotation recovered 77% Au, 86.1% Ag, 85.2% Cu.
Agnico Eagle Mines Ltd. released production on 2023 and its outlook for 2024, including figures for its Mexican operations. During 2023 the Pinos Altos mine in Chihuahua produced 98,280 Oz Au at cash cost of $1,495 per Oz Au and $1,229 per Oz Au on a by-product basis. At La India, in Sonora, 75,904 Oz Au were produced at cash cost of $1,271 per Oz Au and $1,241 per Oz Au on a by-product basis. For 2024 Agnico’s forecast is to produce 100-105 K Oz Au at $1,268 cash cost per Oz Au at Pinos Altos and 25-30 K Oz Au at La India, at cash cost $1,365 per Oz Au. For 2025 and 2026 the envisaged production at Pinos Altos is 125-135 K at Pinos Altos and 115-125 k Oz Au respectively. To achieve that production Pinos Altos is expected to process 1.8 M tonnes averaging 1.86 gpt Au, 47.2 gpt Ag, recovering 94.7% Au, 46.9% Ag in 2024. In the case of La India, the production will come from residual leaching.

ON FINANCING

GR Silver Mining Ltd. closed the non-brokered private placement previously announced issuing shares for gross proceeds of C$670 K (Plomosas, Sinaloa).
Sonoran Desert Corp. is reducing the price and increasing the amount of its private placement offering. The company is now offering shares at $0.10 per unit intending to raise proceeds of up to C$1 M (Cuatro Hermanos, Sonora).
Sonoro Gold Corp. revised the pricing of its previously announced non-brokered placement offering to C$0.05 per share to raise up to C$1 M (Cerro Caliche, Sonora).
Reyna Silver Corp. announced a non-brokered listed issuer financing exemption (LIFE) private placement for gross proceeds of up to $1.5 M. “In addition to the Offering, the Company may, at its discretion, complete a concurrent non-brokered private placement of up to 4,166,667 Units for gross proceeds of up to approximately $500,000” (Guigui, Chihuahua).
Goldgroup Mining Inc. closed US$100 K of the previously announced convertible debt financing. “The Convertible Debt is unsecured, bears interest at 12% per annum, will be repayable on June 15, 2025 and is convertible into units of the Company at CAD $0.10 per unit at a fixed FX rate of 0.76 USD to CAD at the election of the holder.” (Cerro Prieto, Sonora).
Aztec Minerals Corp. closed a non-brokered private placement for aggregate gross proceeds of C$1.1 M (Cervantes, Sonora).
Kootenay Silver Inc. closed the first tranche of its previously announced non-brokered private placement for aggregate gross proceeds of C$3.48 M. The second tranche of the financing is expected to close next week, for aggregate gross proceeds of C$237 K, upon which the aggregate gross proceeds will be C$3.72 M (Columba, Chihuahua).

ON RESOURCES AND DEVELOPMENT

Endeavour Silver Corp. released a Q3 2024 update on the construction advance at the Terronera project, in Jalisco. Overall project progress has reached 43%, with over 2,200 m of underground development completed in 2023, concrete foundation for the jaw crusher was finished, concrete for the grinding area is nearly complete, as well as the concrete for the flotation cell pedestals. The company remains focused for initial production on Q4 2024, to process at a rate of 2,000 tonnes per day to produce 38,000 Oz Au, 4 M Oz Ag annually over its 10-year mine life.
Vizsla Silver Corp. reported results from seven drill holes targeting La Luisa vein at its Panuco project in Sinaloa. Highlighted true width intercepts comprise 1.30 m @ 6.76 gpt Au, 42 gpt Ag; 4.60 m @ 2.64 gpt Au, 73 gpt Ag, 0.1% Pb, 0.4% Zn; 0.85 m @ 7.78 gpt Au, 78 gpt Ag, 0.1% Pb, 1.4% Zn; 1.00 m @ 2.95 gpt Au, 37 gpt Ag, 0.7% Pb, 3.1% Zn. The Luisa vein is in the southwest part of the Panuco district, and has been mapped for 1,500 m on surface and defined by drilling for 1,670 m of longitude, 450 m downdip and 2.93 m of width averaging 3.53 gpt Au, 84 gpt Ag, 0.4% Pb, 1.4% Zn. Recent work by Vizsla points to a tilted mineralization corridor. The vein currently holds 4 M Oz AgEq averaging 459 gpt AgEq in indicated resources and 25.3 M Oz AgEq averaging 386 gpt AgEq in the inferred category.
Silver Dollar Resources Inc. provided an update on drill target development work on the Coloradito-Noria portion of the La Joya project in Durango. The company has highlighted three parallel zones supported by a ground magnetic survey anomalies. The S-1 zone is mostly covered by caliche and has not yielded significant results yet. The S-2 zone is also known as the Central dyke zone, with mineralization associated to a dyke. The S-3 zone is coincident with the Brazo zone, where previous drilling intersected unmineralized intense and extensive alteration. Sampling at the Dyke zone has returned 134 of 170 samples with values over 100 gpt Ag, peaking at 4,311 gpt Ag.
Fortuna Silver Mines Inc. update mineral reserves and mineral resources, including figures for its Mexican operations. At San Jose, in Oaxaca, proven and probable reserves stand at 733 K tonnes @ 156 gpt Ag, 0.98 gpt Au, containing 3.7 M Oz Ag, 23 K Oz Au; measured and indicated resources of 1.05 M tonnes @ 147 gpt Ag, 1.11 gpt Au, containing 5.0 M Oz Ag, 37 K Oz Au; inferred resources of 5.55 M tonnes @ 108 gpt Ag, 0.55 gpt Au, containing 19.3 M Oz Ag, 97 K Oz Au. “The Brownfields exploration program budget for 2024 at San Jose is $4.9 million, which includes 13,900 meters of diamond drilling, focused on testing and extending the Yessi vein as well as exploring additional targets within the mine area”.
Agnico Eagle Mines Ltd. released mineral reserves and resources estimates to the end of 2023, including figures from its Mexican operations. The company holds in Mexico, across two operating mines and several projects, 1.22 M Oz Au, 49.9 M Oz Ag, 591.5 K tonnes Cu, 777.4 K tonnes Zn in the proven and probable reserves category, 2.37 M Oz Au, 58.8 M Oz Ag, 72.7 K tonnes Cu, 114.3 K tonnes Zn in the measured and indicated resources category and 1.92 M Oz Au, 35.7 M Oz Ag, 47.3 K tonnes Cu, 22.4 K tonnes Zn as inferred resources.

ON DEALS AND CORPORATE ISSUES

Vizsla Silver Corp. intends to enter into an agreement with its subsidiary Vizsla Royalties Corp. (Spinco) “within 45 days of this news release in respect of the spinout of the shares of Spinco to the Company’s shareholders….. Spinco currently holds, indirectly, a net smelter royalty on any future mineral production at Vizsla Silver’s flagship, 100% owned Panuco silver-gold project located in Mexico. The Company further announces that holders of its common shares (the “Vizsla Silver Shares”) will be entitled to 1/3 of a common share of Spinco and 1/3 of a common share purchase warrant of Spinco for each Vizsla Silver Share held on the share distribution record date.” (Panuco, Sinaloa).
Atacama Copper Corp. announced the completion of its business combination with TCP1 Corp., pursuant to which the resulting issuer has acquired all the issued and outstanding common shares of TCP1 in exchange for common shares of the resulting issuer, resulting in the reverse takeover of the resulting issuer by TCP1. A 10,000 m drilling program will commence at Cristina, in Chihuahua, in the next two weeks, aimed at better delineating and expanding within the main Guadalupe vein and other high-grade veins.
Orex Minerals Inc. signed an option agreement with Exploraciones El Cairo S.R.L, to acquire the Valenciana project in Zacatecas. Orex has paid US$15 K on signing, and further payments comprise US$10 K at 6 months, US$35 K at 12 months, US$15 K at 18 months, US$15 K at 24 months, US$20 K at 30 months, US$20 K at 36 months, there after US$25 K every six months. The vendor retains a 2% NSR on the property, 1% on staking around the concession and 0.5% on acquisition of properties within the defined area of influence. When the NSR payments reach US$10 M, the NSR values drop by 50%.
Silver Viper Minerals Corp. appointed Taj Singh as independent chair of the company’s board of directors, succeeding Mr. Gary Cope, who will be stepping into retirement (La Virginia, Sonora).
GR Silver Mining Ltd. signed a waiver and release agreement with Mako Mining Corp. under which “the parties were mutually released from outstanding undertakings, covenants, indemnities and obligations set out in, arising from, or related to GR Silver Mining’s acquisition of Marlin Gold Mining Ltd.” Mako retains 1% NSR royalty on the concessions owned by Oro Gold de Mexico SA de CV. In consideration for the waiver and release Mako paid GR Silver US$960 K, of which US$500 K were in cash, and the issued to GR Silver of 296.7 K shares of Mako (Plomosas, Sinaloa).
Defiance Silver Corp. reported the favorable ruling of the Mexican Court to restore its rightful ownership to the mining concessions at the Tepal project in Michoacan. In June 2022 the company contested an illegal transfer of certain mining concessions to a third-party individual. The Court confirmed the nullity of the transfer, and ordered the cancellation of such transfer. “The judgement will be fully enforceable at the expiration of a 9-day appeal process expiring on February 27, 2024”.

ON SOCIAL RESPONSIBILITY

No Relevant News.

On the image below: Banded, locally brecciated quartz-barite-specularite vein on a project of the Sonoran Desert. Picture by Jorge Cirett.

The Mining and Exploration News in Mexico: Highlights on the First Week of February 2024

February 4, 2024 / Gambusino Prospector / Leave a comment

By Jorge Cirett

During the 5^thweek of the year (January 29^th to February 4^th, 2024), companies working in Mexico posted at least 19 news releases. Two companies reported exploration advances on their properties and two companies released quarterly production results. Five companies announced financing rounds, one posted on recent trading activity and one more has been added to a silver special listing. Two companies informed on work at their advanced properties and one more on commencement of mining. Two companies informed on the appointment and resignation of senior officers, one on 2023 performance and its royalty guidance for 2024 and one more on the refurbishment of a mill by a partner. ON MEXICO ISSUES, Gold production fell in Mexico during 2023, but four new projects are poised to start production in 2024. ON EXPLORATION, in Sonora, Aztec Silver informed on RC drilling results from its Cervantes project. In Chihuahua, Kingsmen Resources updated on work at Las Coloradas. ON MINING, Gold Resource Corp. and Sierra Metals reported production results for Q4 and full-year 2023. ON FINANCING, Mexus Gold is to raise $250 K, Zacatecas Silver C$1.8 M, Atacama Copper C$12.9 M (to invest in Chile), Capstone Copper C$375 M (to invest in Chile) and Kootenay Silver C$2.5 M. Chesapeake Gold was added to the “Nasdaq Metal Focus Silver Miners Index”. Kootenay Silver informed on recent trading activity. ON RESOURCES AND DEVELOPMENT, Silver Storm released drilling results from La Parrilla in Durango. CMC Metals updated on work at Gavilanes, in Durango. Bendito Resources is to commence mining base metals at Oposura, in Sonora. ON DEALS AND CORPORATE ISSUES, Orogen Royalties provided an update of 2023 figures and the guidance for 2024 royalties from the Ermitaño deposit in Sonora. Goldgroup Mining and Vizsla Silver informed on resignation/incorporation of senior officers. Xali Gold reported its mill in Nayarit is now operational, and is assessing a JV. ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUES

Raúl García Reimbert, president of the Colegio de Ingenieros de Minas, Metalurgistas y Geólogos de México, stated that four new projects in Mexico are set to start producing gold in 2024, bringing to the market 323,400 Oz Au per year. In 2022 the gold production in Mexico reached 4.77 M Oz, which fell to 2.27 M Oz in 2023, in part by the long Union strike at Peñasquito. The projects to start producing gold are Media Luna by Torex Gold, in Guerrero, Cerro de Oro by Minera Alamos in Zacatecas, Cerro Caliche by Sonoro Gold in Sonora and Terronera by Endeavour Silver in Jalisco.

ON EXPLORATION

Aztec Minerals Corp. announced additional reverse circulation drill results from its Cervantes project in Sonora. Drilling has extended the California zone of gold mineralization for 1 km in the East-West direction, and added the quartzite unit as a favorable gold host. Highlighted drill length intercepts comprise 47.12 m @ 0.51 gpt Au, 57.76 m @ 0.42 gpt Au, 59.44 m @ 0.28 gpt Au; 25.84 m @ 0.44 gpt Au, 109.44 m @ 0.20 gpt Au. “In 2024 it is planned for further technical studies, reconnaissance work on other targets, metallurgical testing and the Cervantes phase 3B RC drilling program of approximately 20 drillholes comprising 2,850 meters including California North and Jasper”.
Kingsmen Resources Ltd. updated on work being carried out at Las Coloradas project in Chihuahua. “Portions of the Soledad structure were mined by ASARCO (American Smelting and Refining Company), the U.S. based subsidiary of Grupo Mexico in the period 1944 to 1952….. Average mining diluted grades are reported to have been in the order of 0.6 to 0.8 g/t gold, 300 to 518 g/t silver, 6.2 to 10.9 % lead and 6.5 to 10.3 % zinc, from four different veins, called La Soledad, Santo Niño, Eva and Rosario.” Kingsmen’s sampling in the old workings confirmed the presence of high-grade silver, and significant silver on La Soledad and La Soledad II vein systems, which are 1.7 and 1.0 Km long respectively

ON MINING

Gold Resource Corp. provided preliminary fourth quarter results for 2023. During the quarter the Don David property in Oaxaca milled 111.2 K tonnes @ 1.44 gpt Au, 85 gpt Ag, 0.39% Cu, 1.4% Pb, 2.9% Zn, to produce 4,077 Oz Au, 282,5 K Oz Ag, 341 tonnes Cu. For the year, Gold Resource sold 30,119 Oz Au, 1.06 M Oz Ag (or 42,757 Oz AuEq), 1,348 tonnes Cu, 5,391 tonnes Pb, 14,157 tonnes Zn.
Sierra Metals Inc. reported Q4 2023 production, including figures from its operations in Mexico. At Bolivar, in Chihuahua, during the fourth quarter 410 K tonnes were processed at a daily rate of 4,686 tonnes grading 0.84% Cu, 16.6 gpt Ag, 0.42 gpt Au, recovering 92.6% Cu, 82.4% Ag, 68.4% Au, to produce 7.06 M Lb Cu, 179 K Oz Ag, 3,757 Oz Au. For the year 1.48 M tonnes were processed, grading 0.85% Cu, 17.3 gpt Ag, 0.41 gpt Au, recovering 92.9% Cu, 82.0% Ag, 68.3% Au, to produce 25.77 M Lb Cu, 674 K Oz Ag, 13,347 Oz Au (or 36.6 M Lb CuEq). “… plans are underway to enhance the capacity of the tailings dam which will enable the plant to increase production levels”. For 2024 production guidance for Bolivar is 23.9 to 27.6 M Lb Cu, 650 to 750 K Oz Ag, 8,000 to 9,200 Oz Au.

ON FINANCING

Mexus Gold US. Announced its intent to raise $250 K “the estimated amount to pay for its currently outstanding but completed audits bringing Mexus back into compliance with the OTCQB exchange, paying for outstanding claim taxes, and general and administration purposes” (Santa Elena-Don Julio, Sonora).
Kootenay Silver Inc. confirms that its board and management are not aware of any corporate development “or undisclosed material change relating to the Company or its operations that would account for the recent trading activity and decrease in its share price” (Columba, Chihuahua).
Chesapeake Gold Corp. has been added to the Nasdaq Metal Focus Silver Miners Index, “and believe that our selection to this index is further recognition of our progress and achievements” (Metates, Durango).
Zacatecas Silver Corp. announced a non-brokered placement financing for totals proceeds of C$1.8 M (Zacatecas Silver project, Zacatecas).
Atacama Copper Corp. closed the third and final tranche of the previously announced brokered private placement for gross proceeds of C$300 K and aggregate gross proceeds of C$12.9 M raised in connection with the proposed transaction (Yecora, Sonora).
Capstone Copper Corp. and Orion Fund JV Ltd, Orion Mine Finance Fund II LP and Orion Mine Finance (Master) Fund I-A LP jointly announce that they have entered into an agreement with a syndicate of underwriters led by RBC Capital Markets, as Lead Bookrunner and including National Bank Financial and Scotiabank as Joint Bookrunners pursuant to which the underwriters have agreed to purchase, on a bought deal basis, shares for aggregate gross proceeds of C$375 M. The funds are to be used on projects in Chile (Cozamin, Zacatecas).
Kootenay Silver Inc. announced a non-brokered private placement offering aimed to raise up to C$2.5 M in gross proceeds. (Columba, Chihuahua).

ON RESOURCES AND DEVELOPMENT

Silver Storm Mining Ltd. released results from seven diamond holes from its phase 1 drilling program at La Parrilla, in Durango. Highlighted core length intervals from the San Nicolas Zone comprise 9.39 m @ 676 gpt Ag, 0.12% Cu, 0.3% Pb, 0.1% Zn (including 5.25 m @ 988 gpt Ag, 0.18% Cu, 0.3% Pb, 0.1% Zn); 2.20 m @ 1,186 gpt Ag, 0.32% Cu, 0.2% Pb; 1.75 m @ 0.13 gpt Au, 1,479 gpt Ag, 0.25% Cu, 1.2% Pb, 2.1% Zn; 0.50 m @ 5.90 gpt Au, 26 gpt Ag; 4.09 m @ 172 gpt Ag, 2.2% Pb, 3.1% Zn; 7.50 m @ 325 gpt Ag, 3.7% Pb, 3.8% Zn (including 3.45 m @ 600 gpt Ag, 6.1% Pb, 6.9% Zn); 2.45 m @ 150 gpt Ag, 2.6% Pb, 3.0% Zn. “Prior to placing La Parrilla on care and maintenance First Majestic had commenced mining over 5 established levels and 80 vertical metres at San Nicolas. We have now been able to expand and trace the high-grade mineralization 370 metres down from surface, with continuity.”
CMC Metals Ltd. provided an update on its Gavilanes project in Durango. The management team of the company participated on the annual assembly of the Ejido Los Gavilanes, where they agreed to enter into a letter of intent (LOI) to advance an exploration agreement. CMC is also working in the financing of the project, with its recent participation on the VRIC conference in Vancouver. The company is active working to obtain financing for phase 1 of the project, which is to include funding for up to 4,500 m of drilling. The current inferred resource is 1.76 M tonnes @ 320 gpt AgEq, containing 18.2 M Oz AgEq.
Bendito Resources Inc. finalized logistics for the commencement of phase 1 mining of high-grade Zn-Pb ore at Oposura, in Sonora. Ocean partners has provided a US$2 M revolving pre-financing facility, bearing interest at 11.5% and repayable 120 days from the date advanced. The transaction stipulates a minimum size of 5K tonnes per lot, grading greater than 20% Zn+Pb. The historical mineral resource estimation contains 70-100 K tonnes of this high-grade ore.

ON DEALS AND CORPORATE ISSUES

Orogen Royalties Inc. provided a 2023 update and forecast for 2024, including figures from its Mexican plays. The company holds a 2% NSR royalty on the production by First Majestic Silver on the Ermitaño project in Sonora, where 28,056 Oz Au, 582.5 K Oz Ag were produced during Q4 2023. As of the end of 2022 the Ermitaño mine had 369,000 Oz Au, 5.8 M Oz Ag in measured and indicated resources, and 269,00 Oz Au, 7.7 M Oz Ag in inferred resources. For 2024, First Majestic’s production guidance is between 81,000 to 90,000 Oz Au, and 1.1 to 1.2 M Oz Ag, “with over 90% of the production from the Ermitaño mine”.
Goldgroup Mining Inc. announced the resignation of Javier Reyes from the board of directors of the company (Cerro Prieto, Sonora).
Vizsla Silver Corp. informed Simon Cmrlec, a highly experienced senior engineer is joining Vizsla as chief operating officer (COO) and will be tasked with advancing the Panuco project in Sinaloa towards production. He will commence the role on April 1, 2024.
Xali Gold Corp. informed that Grupo Minero WIYA has made the required repairs to get operational Xali Gold’s San Dieguito de Arriba (SDA) Plant in Nayarit. Under the current agreement WIYA has to pay US$150 K per month for 10 months and upon completion of paying a total of US$1.5 M, WIYA would have the right to own the SDA Plant, “however discussions are now ongoing to change these terms into a Joint Venture and operate the plant together for shared profits. Currently, Magellan Acquisition Corp. (“Magellan”), and the Company each own 50% of the SDA plant”.

ON SOCIAL RESPONSIBILITY

No Relevant News.

On the image below: Specularite-quartz breccia vein on a project of the Sonoran Desert. Picture by Jorge Cirett.

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