The Mining and Exploration News in Mexico: Highlights on the Third Week of October, 2020

By Jorge Cirett

During the 42nd week of the year (October 12th to October 18th, 2020), at least 32 press releases were announced by companies working in Mexico. To note, seven companies posted their quarterly reports, five on project development and three companies posted news on deals. ON MEXICO ISSUES, the Centro de Minería Compatible is being built in Zacatecas. What remains of the Mining Fund will source $2 M for infrastructure projects in Colima. The federal government generates uncertainty for the mining industry thorough its actions. Mergers and acquisitions boom in the Mexican mining industry. The lithium nationalization fears are played down by the Economy Secretariat. ON EXPLORATION, in Sonora, Minaurum Gold released high grade drilling results from its Alamos Silver project. Canuc released high-grade surface sample results from its San Javier silver play. Tocvan Ventures announced the interpretation of a second suspected breccia pipe at Pilar. In Chihuahua, Global Li-Ion Graphite is to realize a due diligence review on the MVZ project.  ON MINING, First Majestic, Premier Gold, Sierra Metals, Fortuna Silver, Excellon Resources, Telson Mining and McEwen Mining presented third quarter 2020 production reports. ON FINANCING, Telson Mining settled a $659.8 K debt with shares. Silver Bull Resources intends to raise up to US$1.85 M. Consolidated Zinc closed a $2.04 M placement. Santacruz Silver Mining closed the last financing round for aggregate gross proceeds of $2.36 M. ON RESOURCES AND DEVELOPMENT, Comet Resources released an initial inferred resource of 88.6 K Oz Au for its Santa Teresa project in Baja California. Prime Mining is to commence drilling at Los Reyes, Sinaloa, in November. Discovery Metals released high-grade results from the Todos Santos vein trend at its Cordero project in Chihuahua. GoGold Resources informed on results of drilling the La Trini deposit at its Los Ricos North project in Jalisco. Golden Tag is to commence drilling on its San Diego project in Durango. ON DEALS AND CORPORATE ISSUES, Silver Spruce signed a LOI with Colibri Resource to acquire the Jackie Gold project in Sonora. Tarachi Gold signed a LOI with Manto Resources on the Magistral del Oro tailings project in Durango. Silver Bull informed on the status of the illegal blockade at its Sierra Mojada project in Coahuila. ON SOCIAL RESPONSIBILITY. Industrias Peñoles, Minera Media Luna, Pan American Silver and Minera Penmont informed on sustainability, health, safety, environment and social and governance programs.

ON MEXICO ISSUES

  • The Centro de Minería Compatible is being built by the Zacatecas Mining Cluster. The facilities are under construction at the Parque Científico y Tecnológico Quantum in Zacatecas, a Complex that hosts enterprises and institutions focused in research and innovation.
  • The Mining Fund is to provide MX$41.96 M pesos (US$2 M) for 10 infrastructure projects in Minatitlan, Colima.
  • Government actions in Mexico generate uncertainty for mining enterprises. The elimination of the Mining Sub-Secretariat and the informal ban on the granting of mining concessions are the two more acute actions that send the wrong message to the mining industry. Another issue is constituted by the disputes between companies and the fiscal authority on taxation.
  • The mining sector has been at the forefront of mergers and acquisitions in Mexico, in the period of January to September, with 22 operations, according to Seale&Associates.
  • Mujeres WIM Mexico celebrated a virtual forum, entitled “Agenda and challenges for inclusion of women in the mining industry”.
  • Graciela Marquez, Economy Secretary played down the high expectations for lithium production in Mexico. She pointed out that Mexico does not produce any lithium at all in the present, and that the strongly hyped Bacanora Lithium’s project in Sonora hosts a large deposit in clays, which makes its extraction expensive. Her comments were a response to the voices claiming for the nationalization of the lithium industry by a leftist congressional group.

ON EXPLORATION

  • Minaurum Gold Inc. released drill results from the Promontorio vein zone at its Alamos Silver project in Sonora. “The holes were targeted below the historical Promontorio mine and demonstrate that high-grade silver mineralization continues at least 100 m below the deepest known workings”. Highlighted intervals comprise 1.75 m @ 144 gpt Ag, 0.51 gpt Au, 0.21% Cu, 4.1% Pb, 9.1% Zn; 7.60 m @ 266 gpt Ag, 0.27 gpt Au, 0.57% Cu, 1.6% Pb, 3.2% Zn (including 0.9 m @ 1,675 gpt Ag, 1.37 gpt Au, 4.15% Cu, 8.5% Pb, 11.3% Zn; 0.65 m @ 502 gpt Ag, 0.04 gpt Au, 1.82% Cu, 0.2% Pb, 0.1% Zn; 5.10 m @ 769 gpt Ag, 0.11 gpt Au, 0.76% Cu.
  • Canuc Resources Corp. released results from surface rock chip sampling at its San Javier project in Sonora. The results are strongly anomalous in silver (up to 1,222 gpt Ag), Au (up to 14.4 gpt Au) and copper (up to 0.95% Cu). The copper anomalous samples are from a breccia zone with magnetite matrix.
  • Tocvan Ventures Corp. announced the interpretation of a circular feature through geochemistry at its Pilar property in Sonora, same that might represent a breccia feeder pipe related to epithermal mineralization.
  • Global Li-Ion Graphite Corp. is to conduct a field due diligence on the property MVZ in Chihuahua, owned by Grupo Minero Diflor S.A. de C.V.. The 1,750 hectares property hosts 3 past producing silver-gold deposits, El Moro, La Virginia and La Zorra, within the larger El Pajarito property, also owned by Diflor.

ON MINING

  • First Majestic Silver Corp. released its third quarter 2020 production report, for a total of 5.2 M Oz AgEq. The production by mine can be seen in the following table.
  • Premier Gold Mines Ltd. presented production results for the third quarter 2020, including some figure from its Mexican operations. At the Mercedes mine in Sonora, 12,183 Oz Au and 49,985 Oz Ag were produced during the period.
  • Sierra Metals Inc. reported third quarter 2020 production results, including figures from its two mines in Mexico. At Bolívar, in Chihuahua, 410.5 K tonnes were processed at a daily rate of 4,691 tonnes (tpd) and a grade of 0.86% Cu, 18.2 gpt Ag, 0.32 gpt Au, recovering 86.1% Copper, 82.9% Ag, 64.2% Au to produce 6.73 M Lb Cu, 199 K Oz Ag, 2,740 Oz Au. At Cusi, in Chihuahua, 69.83 K tonnes were processed at 1,074 tpd and a grade of 168.6 gpt Ag, 0.18 gpt Au, 0.25% Pb, recovering 80.4% Ag, 43.6% Au, 79.3% Pb.
  • Fortuna Silver Mines Inc. reported production results for the third quarter 2020, including figures from its operations in Mexico. At the San José mine in Oaxaca 255.2 K tonnes were processed at a rate of 2,934 tpd, grading 254 gpt Ag, 1.52 gpt Au, recovering 91.9% Ag, 91.7% Au to produce 1.92 M Oz Ag, 11,425 Oz Au.
  • Excellon Resources Inc. released production results for the third quarter 2020 from its Platosa mine in Durango. During the period 21,877 tonnes were mined, with 22,612 tonnes processed @ 483 gpt Ag, 5.26% Pb, 6.81% Zn, recovering 93.0% Ag, 85.0% Pb, 80.9% Zn, to produce 326.9 K Oz Ag, 2.23 M Lb Pb, 2.75 M Lb Zn.
  • Telson Mining Corp. provided preliminary production results for the third quarter 2020. At the Campo Morado mine in Guerrero, 127.4 K tonnes were milled @ 1.07 gpt Au, 104 gpt Ag, 0.98% Pb, 4.07% Zn, 0.40% Cu, recovering 9% Au, 36% Ag, 27% Pb, 69% Zn, to produce a zinc concentrate with 46.3% Zn, 506 gpt Ag and a lead concentrate with 21.2% Pb, 558 gpt Ag, 2.87 gpt Au.
  • McEwen Mining Inc. reported production for the third quarter of 2020, including figures from its Mexican operations. During the period, El Gallo, located in Sinaloa and undergoing residual leaching, produced 1,900 Oz AuEq. “An updated feasibility study for the Fenix Project is being finalized, and we expect to release the results in Q4”.

ON FINANCING

  • Telson Mining Corp. informed “the Company has closed its debt settlement with Accendo Banco, S.A. Institucion de Banco Multiple (“Accendo”). Accendo has funded the payout of $659,758 of debt related to Tahuehueto mining project’s suppliers and accordingly, the Company has issued to Accendo 7,330,651 shares at a deemed price of $0.09 per share” (Campo Morado, Guerrero).
  • Silver Bull Resources Inc. intends to complete a private placement to raise up to US$1.85 M (Sierra Mojada, Coahuila).
  • Consolidated Zinc Ltd. informed the closing of the fully underwritten pro-rata non-renounceable entitlements offer to raise $2.04 M (Plomosas, Chihuahua).
  • Santacruz Silver Mining Ltd. closed the second an d final tranche of its non-brokered private placement, for aggregate gross proceeds of $2.36 M (Zimapan, Hidalgo)

ON RESOURCES AND DEVELOPMENT

  • Comet Resources Ltd.  released the results of the initial JORC compliant mineral resource estimate for its Santa Teresa project in Baja California. The inferred resource comprises 369 K tonnes @ 7.47 gpt Au, containing 88.6 K Oz Au. “Gold mineralisation at Santa Teresa is within parallel …… mesothermal lode-gold quartz vein systems. The veins range in width from a few cm to about three metres in width, and up to several hundred metres of known strike length. In general, the quartz veins are narrow, averaging less than 0.3 m in width, occupying parallel fractures with sheared walls ….. A second generation of veining followed a fracturing episode and was accompanied by epidote, hornblende and sparse mineralisation of galena, sphalerite, pyrite, marcasite, pyrrhotite, chalcopyrite, magnetite, specularite, and native gold”.
  • Prime Mining Corp. informed drilling is expected to commence in November at the Los Reyes project in Sinaloa. The company efforts are directed to upgrade 7.1 M tonnes of current inferred resource to the measured and indicated category, and adding more ounces to the resources.
  • Discovery Metals Corp. released results from four drill holes at the Todos Santos vein trend of its Cordero project in Chihuahua. Highlighted results comprise 25 m @ 92 gpt Ag, 0.14 gpt Au, 1.6% Pb, 3.1% Zn (including 3.4 m @ 421 gpt Au, 0.42 gpt Au, 8.0% Pb, 10.0% Zn); 49.7 m @ 38 gpt Ag, 0.09 gpt Au, 0.6% Pb, 1.9% Zn (including 2.0 m @ 532 gpt Ag, 0.38 gpt Au, 8.8% Pb, 8.1% Zn); 21.0 m @ 59 gpt Ag, 0.19 gpt Au, 0.9% Pb, 2.0% Zn (including 3.3 m @ 152 gpt Ag, 0.71 gpt Au, 2.2% Pb, 6.9% Zn); 6.9 m @ 133 gpt Ag, 0.10 gpt Au, 2.9% Pb, 5.4% Zn. “The Todos Santos vein trend, consisting of the Main Vein and Footwall Vein, has an interpreted southwest strike extent of at least 1.5 km based on historic underground workings and drilling, with veins dipping steeply to the northwest. The drill-confirmed portion of the Main Vein along the Todos Santos trend has a strike extent of 800 m and a down-dip extent of 300 m and is open along strike in both directions and at depth”.
  • GoGold Resources Inc. released results from drilling at the La Trini deposit in the Los Ricos North project in Jalisco. Some of the highlighted results comprise 6.3 m @ 1.42 gpt Au, 127 gpt Ag; 18.8 m @ 0.24 gpt Au, 30 gpt Ag; 24.0 m @ 0.80 gpt Au, 51 gpt Ag (including 6.0 m @ 2.78 gpt Au, 103 gpt Ag; 23.5 m @ 0.16 gpt Au, 97 gpt Ag; 31.0 m @ 1.50 gpt Au, 95 gpt Ag (including 11.2 m @ 3.67 gpt Au, 165 gpt Ag); 34.5 m @ 0.79 gpt Au, 79 gpt Ag (including 5.6 m @ 3.08 gpt Au, 179 gpt Ag; 25.7 m @ 0.21 gpt Au, 38 gpt Ag; 24.0 m @ 0.16 gpt Au, 39 gpt Ag.
  • Golden Tag Resources Ltd. plans to commence a 4,500 m drilling program at its San Diego project within the Velardeña district, in Durango. The exploration is to focus in the expansion of the known resource of 31.6 M Oz Ag in indicated resources and 83.8 M Oz Ag in inferred resources (TR 2013). The drilling is to cover the Trovador, 1849 target, Fernandez and Arroyo zones.

ON DEALS AND CORPORATE ISSUES

  • Silver Spruce Resources Inc. signed a letter of intent with Colibri Resource Corp. to acquire 50% interest in the Jackie Gold project in Sonora. Silver Spruce agreed to pay US$25 K and CAD$25 K in shares as the first property payment, and $US25 K and CAD$25 K in shares on the first year. Silver Spruce also concurs in paying 50% of due taxes and property rights agreements at the completion of the agreement. “Upon completion of these terms, Silver Spruce will hold a 50% interest in the Property and a Joint Venture will be formed to direct all exploration and drilling expenses and thereafter will be shared 50% by Silver Spruce and 50% by Colibri”.
  •  Tarachi Gold Corp. entered into a non-binding letter of intent (LOI) with Manto Resources S.A. de C.V. to acquire certain assets related to the Magistral del Oro tailing processing plant in Durango. The plant is a permitted 1,000 tpd tailings processing plant, with tailing resource estimates of 1.29 M tonnes @ 2.06 gpt Au. The deal involves 4 M shares of Tarachi, granting Manto a 15% NSR and reimburse Manto up to US$500 K for cash outlays, and Tarachi will satisfy “certain obligations” of Manto by paying US$1,65 M plus VAT and issuing a total of 1,685,916 Common Shares over a period of six months. Furthermore, on commencement of commercial production Tarachi will issue Manto 4 M shares; six months after continuous commercial production; 4 M shares, twelve months after commercial production 4 M shares and US$500 K. Upon Tarachi earning US$15 M in revenue, the company will pay Manto US$1 M.
  • Silver Bull Resources Inc. informed that “The Sierra Mojada Project remains under an option with South32 International Investment Holdings Pty Ltd and is currently under a force majeure due to the illegal blockade. As soon as we are able access the project, we expect to recommence the drilling program that was halted“.

ON SOCIAL RESPONSIBILITY

  • Minera Media Luna (Guerrero) informed on actions for betterment of the communities around the mining operations.
  • Pan American Silver informed on actions taken and support against the COVID-19 pandemic in the mining communities near its operations.
  • Industrias Peñoles received the sanitary safety award by the IMSS, on grounds of its actions fighting the COVID pandemic.
  • Minera Penmont is protecting the biodiversity in the Caborca region, in Sonora.
  • Industrias Peñoles donated five thousandtree saplings to the municipality of Gomez Palacio, Durango.

Content like what you have just read can be seen at https://gambusinoprospector.com/ and at LinkedIn’s Mexico Mineral Exploration Group.

On the image below: The Cerro San Pedro open pit in 2010, San Luis Potosí. Picture by Jorge Cirett.

The Mining and Exploration News in Mexico: Highlights on the First Week of October, 2020

By Jorge Cirett

During the 40th week of the year (September 28th to October 4th, 2020), at least 40 press releases were announced by companies working in Mexico. To note, five companies posted exploration advances on their projects, ten companies posted news related to financing or share structure, and seven on their projects development. ON MEXICO ISSUES, the Mining Fund is gone. A new special force was created to aid protect mining companies from criminal gangs activities. Only nine percent of Mexico is under a current mining concession. The CTM asks for the continuation of the Mining Fund. Some 150 junior exploration companies have left Mexico. The Mining-Metallurgic production index grew by 6.2% in July. Sixteen municipalities in Hidalgo are to receive $48 M pesos from the Mining Fund. ON EXPLORATION, in Sonora, Colibri Resources completed a mag survey on Evelyn. Tocvan Ventures identified a pipe like structure at its Pilar project. In Sinaloa, Brigadier Gold commenced drilling at Picachos. In Durango, Mithril Resources released drilling results from Copalquin. In Oaxaca, Megastar Development team is back in the field at Yautepec and Magdalena.  ON MINING, No relevant news. ON FINANCING, One World Lithium ($1.5 M), Plymouth Realty Capital ($10 M), Barksdale ($6.325 M), Santacruz Silver (CDN$9.5 M), Prismo Metals ($575 K), Endeavour Silver (US$60 M) released news regarding financing rounds. Candelaria Mining settled a $1.087 M debt with shares. Silver One granted options to its directors, officers, employees and consultants. Silver Dollar started trading at the OTCQB. ON RESOURCES AND DEVELOPMENT, GR Silver released underground channel sampling results. Consolidated Zinc presented the latest resource estimate at its Plomosas mine in Chihuahua, and announced the refurbishment of the processing plant at the site. Capitan Mining commenced resource expansion drilling at El Capitan, Durango. Azucar Minerals presented the initial resource estimate for the El Norte Zone of its El Cobre project in Veracruz. GoGold Resources released drilling results from its Los Ricos North project in Jalisco. Bacanora Minerals is focusing in engineering while the financing package is complete for its Sonora Lithium project. Golden Minerals released final results of its resource definition drilling program at the Rodeo project, Durango. ON DEALS AND CORPORATE ISSUES, Candente Gold signed the definitive agreement on the acquisition of the San Dieguito de Arriba plant in Nayarit. Silver One is selling its Mexican properties to Plymouth Realty Capital. Dyna Resources is trying to enforce in USA a favorable Mexican court ruling. Silver Spruce has recurred to force majeure clause for lack of access to its Pino de Plata property in Chihuahua. Reyna Silver entered into an option agreement to acquire the Reyna project in Chihuahua. ON SOCIAL RESPONSIBILITY. Fresnillo PLC, Minera Autlan, Minera Saucito and Industrias Peñoles informed on sustainability, health, safety, environment, social and governance programs.

ON MEXICO ISSUES

  • The Mining Fund is gone for good from the purpose it was created for: aiding the development of mining communities. Mining States and municipalities wonder what the destiny of more than $1,500 M pesos actually in the Fund. The actual federal government re-directed the use of the Mining Fund, with 85% going to the Education Secretariat, 5% to the Economy Secretary and 10% to federal government infrastructure programs.
  • A new special force for overseeing mining operations was formed by the federal government. The first 118 guards graduated from a special training course, and will be equipped with assault weapons. Heists by organized crime have plagued the industry in the last few years, with robberies of bullion in mining operations across several states.
  • The Economy Secretariat informed mining concessions cover only 9% of Mexico. Graciela Marquez, Secretary of Economy noted that 24 thousand current mining concessions cover 17 M hectares. The Director de Minas (reporting to Gabriela Marquez) pointed that they are following the president view of not granting more mining concessions, which is problem that will catch up in 10 years’ time with fewer new deposits to mine due to the lack of exploration.
  • The Confederacion de Trabajadores de Mexico (one of the largest union organizations in Mexico, best known as “CTM”) asked the federal government and the Deputies Chamber for the no disappearance of the Mining Fund.
  • Fernando Alanís Ortega from Camimex pointed out some 150 junior exploration companies have left Mexico due to the complex operative environment. Several companies have diversified their operations this year, with acquisitions in Canada and USA. The last company to divest its Mexican portfolio is Silver One, to focus on a project in Nevada.
  • The Mexican index of Mining-Metallurgic production increased by 6.2% in July, compared with the same month of 2019 and by 5.1% from July 2020 to the previous month.
  • Sixteen Municipalities in Hidalgo are to receive $48 M pesos from the Fund for Development of Mining Production Zones.  

ON EXPLORATION

  • Brigadier Gold Ltd. commenced its maiden drill program at the 3,954 ha Picachos property in Sinaloa. The drilling of 5,000 m in 40 holes will test the San Agustín mine (underground rock chip sample of 1.2 m @ 73.4 gpt Au), and the the Mochomos (underground rock chip sample of 0.5 m @ 18.5 gpt Au, 570 gpt Ag), Tejones (underground rock chip sample of 1.0 m @ 28.6 gpt Au, 114 gpt Ag) and Fermin (underground rock chip sample of 1.0 m @ 0.3 gpt Au, 268 gpt Ag) veins. “the Cocolmeca Vein system is comprised of several sub-parallel veins over a 1.5 kilometre (km) wide zone ……  San Agustín is the best understood of these veins, mainly because it has been historically exposed underground by approximately 670 line-metres of tunnels, stopes and shafts”.
  • Colibri Resource Corp. received results from a high-resolution magnetic survey at its Evelyin property in Sonora. The interpretation of the magnetic data allowed the identification of three families of lineaments that are to aid in the definition and prioritization of targets.
  • Tocvan Ventures Corp. informed on new interpretations on all the information gathered on its Pilar project in Sonora. With the aid of geophysical, geochemical and structural specialists a conclusion was reached that a sub-vertical pipe-like feature may represent a breccia feeder pipe related to epithermal mineralization. The pipe is close to 100 m in diameter, oval shaped and dipping 70 degrees to the SSW.
  • Mithril Resources Ltd. Released results from nine more holes at La Soledad in the Copalquin project, Durango. Drilling confirmed the bonanza grades of the La Soledad vein and intercepted additional veins at depth and along strike. Highlighted results comprise 3.8 m @ 2.58 gpt Au, 143 gpt Ag; 0.5 m @ 6.78 gpt Au, 10 gpt Ag, an open working for 2.5 m and then 1.5 m @ 6.65 gpt Au, 18 gpt Ag; 2.82 m @ 2.37 gpt Au, 22 gpt Ag; 7.5 m @ 6.74 gpt Au, 158 gpt Ag.
  • Megastar Development Corp. reported its exploration team is back at the Yautepec and Magdalena projects in Oaxaca. So far, they have found “highly prospective ferruginous (iron-rich) carbonate sinters and fault-controlled quartz veining and breccias in discontinuous erosional windows under post-mineral volcanic rocks over areas of several hundreds of meters”. These findings correlate well with the envisaged uppermost levels of an epithermal system, the concept exploration model used at the site.

ON MINING

  • No Relevant News.

ON FINANCING

  • One World Lithium Inc. announced a non-brokered private placement for gross proceeds of up to $1.5 M (Salar del Diablo, Baja California).
  •  Candelaria Mining Corp. closed the previously announced shares for debt transaction in settlement of $1.087 M of indebtedness (Pinos, Zacatecas).
  • Plymouth Realty Capital Corp. will complete a $10 M private placement funding (Peñasco Quemado, Sonora; La Frazada, Nayarit; Pluton, Durango).
  • Silver One Resources Inc. granted 2.575 M stock options to its directors, officers, employees and consultants (Peñasco Quemado, Sonora).
  • Fresnillo PLC. Is extended the expiration time on its tender offer to purchase for cash any and all of its outstanding US$800,000,000 principal amount of 5.5% Notes due 2023, to September 29. 2020 (La Herradura, Sonora).
  • Silver Dollar Resources Inc. started trading on September 30, 2020, in the United States on the OTCQB Venture Market (La Joya, Durango).
  • Barksdale Resources Corp. closed the final tranche of the company’s non-brokered private placement that raised $6.325 M (San Javier, Sonora).
  • Santacruz Silver Mining Ltd. Increased the size of its previously announced non-brokered private placement offering to CDN$9.5 M (Rosario, San Luis Potosi).
  • Prismo Metals Inc. completed its initial public offering (IPO) for gross proceeds of $575 K (Palos Verdes, Sinaloa).
  • Endeavour Silver Corp. entered into a sales agreement with BMO Capital Markets as the lead agent upon which the company can sell a number of common shares than can amount up to US$60 M (El Compas, Zacatecas; Terronera, Jalisco).

ON RESOURCES AND DEVELOPMENT

  • GR Silver Mining Ltd.  announced favorable results from underground channel sampling on the lower level of the Plomosas mine in Sinaloa. Disseminated and massive mineralization is constituted by veins, stockworks and sulfide stringers that include chalcopyrite, sphalerite and galena in a brecciated tuff. Highlighted channel intervals comprise 2.6 m @ 504 gpt Ag, 14.6 gpt Au, 8.9% Pb, 6.6% Zn, 0.3% Cu; 15.7 m @ 90 gpt Ag, 2.5 gpt Au, 0.5% Pb, 1.3% Zn, 0.8% Cu: 5.4 m @ 147 gpt Ag, 10.0 gpt Au, 0.6% Pb, 3.3% Zn, 1.2% Cu; 7.8 m @ 50 gpt Ag, 2.9 gpt Au, 2.2% Pb, 7.3% Zn, 0.2% Cu; 6.0 m @ 66 gpt Ag, 6.2 gpt Au, 1.4% Pb, 3.9% Zn, 0.9% Cu.
  • Consolidated Zinc Ltd. presented a mineral resource estimate for the month of April 2020 for its Plomosas mine in Chihuahua. The indicated and inferred mineral resources comprise 964 K tonnes @ 13.2% Zn, 3.5% Pb, 20.6 gpt Ag that contain 127 K tonnes of zinc, 34 K tonnes of lead and 639 K Oz silver. The company is refurbishing the Plomosas beneficiation plant to process the ore at the site, for an estimated cost of US$1.35 M. The plant will start processing 3,000 tonnes per day (tpd), with the possibility of an expansion to 6,000 tpd.
  • Capitan Mining Inc. has commenced drilling at the Capitan project in Durango. The first phase comprises 6,000 m of reverse circulation drilling focused on step-out holes for resource expansion.
  • Azucar Minerals Ltd. completed its initial resource estimate for the Norte zone at El cobre project in Veracruz. “Copper and gold mineralization at the Norte Zone is associated with a multiphase variably potassic-phyllic altered porphyritic diorite intrusive complex that is cut by late mafic and intermediate dykes and post mineral feldspar porphyry. The Norte Zone is approximately 0.6 km x 0.4 km along an E-W strike. Sulphide mineralization, which extends up to 900 metres depth, consists of disseminated and vein-hosted chalcopyrite and trace bornite (Cu mineralization) exposed in surface outcrops and intersected in drill core”. The base case scenario considers indicated resources of 47.2 M tonnes @ 0.49 gpt Au, 0.21% Cu, 1.4 gpt Ag containing 1.17 M Oz AuEq and inferred resources of 26.9 M tonnes @ 0.42 gpt Au, 0.18% Cu, 1.3 gpt Ag, containing 1.35 M Oz AuEq.
  • GoGold Resources Inc. released drilling results from the La Trini deposit on the Los Ricos North project in Jalisco. Some of the highlighted results from 12 holes released comprise 22.5 m @ 1.37 gpt Au, 158 gpt Ag; 22.5 m @ 0.20 gpt Au, 48 gpt Ag; 44.5 m @ 0.84 gpt Au, 63 gpt Ag; 38.4 m @ 0.40 gpt Au, 30 gpt Ag; 29.6 m @ 0.42 gpt Au, 88 gpt Ag; 27 m @ 0.12 gpt Au, 48 gpt Ag; 7.9 m @ 0.86 gpt Au, 64 gpt Ag; 19.5 m @ 0.18 gpt Au, 83 gpt Ag; 21.8 m @ 2.73 gpt Au, 130 gpt Ag (including 5.6 m @ 9.40 gpt Au, 365 gpt Ag).
  • Bacanora Lithium PLC. Informed the company has a strong cash balance of US$44.4 M as of June 30, 2020, and retains a senior debt facility of US$150 M. At the Sonora Lithium project in Sonora, work is focused on finalizing engineering so that construction may commence after the financing package is completed.
  • Golden Minerals Co. released final assays from its resource definition program at the Rodeo project in Durango. Some of the true width (tw) highlighted intercepts comprise 15.8 m @ 2.05 gpt Au, 16 gpt Ag; 15.3 m @ 1.09 gpt Au, 4 gpt Ag; 25.5 m @ 2.49 gpt Au, 6 gpt Ag; 25.8 m @ 1.22 gpt Au, 5 gpt Ag; 15.6 m @ 0.78 gpt Au, 3 gpt Ag; 15.0 m @ 0.74 gpt Au, 3 gpt Ag; 7.7 m @ 0.98 gpt Au, 3 gpt Ag; 34 m @ 1.63 gpt Au, 6 gpt Ag; 49.5 m @ 1.77 gpt Au, 22 gpt Ag; 9.6 m @ 0.97 gpt Au, 2 gpt Ag; 25.8 m @ 3.10 gpt Au, 10 gpt Ag; 24.5 m @ 1.32 gpt Au, 5 gpt Ag; 28.0 m @ 1.96 gpt Au, 8 gpt Ag; 17.5 m @ 1.36 gpt Au, 5 gpt Ag. The resource the company is trying to improve was defined in 2017 at 0.4 M tonnes @ 3.3 gpt Au, 11 gpt Ag, containing 46 K Oz Au, 200 K Oz Ag.

ON DEALS AND CORPORATE ISSUES

  • Candente Gold Corp. signed the definitive agreement with Magellan Acquisition Corp. to earn up to 100% interest in the San Dieguito de Arriba beneficiation plant and the rights on the El Dorado property, both in Nayarit.
  • Silver One Resources Inc. entered into a letter of intent (LOI) with Plymouth Realty Capital Corp. to sell all its Mexican silver properties. In consideration for the properties Plymouth is to pay $1 M in cash and $5 M in shares. Plymouth Realty Capital will also change its name to Silverton Metals Corp. (Peñasco Quemado, Sonora; La Frazada, Nayarit; Pluton, Durango).
  • Dyna Resource Inc. announced the filing on August 28, 2020 in Dallas county, Texas, a petition for recognition of the USD$48 M foreign judgement against Goldgroup Resources Inc. in order to recognize in USA the judgment obtained in Mexico against Goldgroup Resources Inc. (the judgment relates to a legal challenge for the ownership of the San José de Gracia project in Sinaloa).
  • Silver Spruce Resources Inc. has “retained Mexico-based legal counsel to lead the discussions with representatives of the surface landowners of Pino de Plata in order to re-negotiate access rights to the ranch that covers the Pino de Plata project area”. The company’s purchase rights contract is now under a force majeure clause until access rights are granted by surface owners to continue exploration.
  • Reyna Silver Corp. announced the acquisition of the 300 ha La Reyna project in Chihuahua. The property is in the Cusihuiriachi (Cusi) silver district of low sulfidation epithermal mineralization. “La Reyna proper is a nearly north-south trending structure traceable as vein and altered outcrops for 4 km across the property. Two historic (1890s) shafts (La Reyna and Princesa) that extend to 133-150m depths exploited high-grade silver-rich mineralized shoots 2-5 m wide in the late 1800s”. The deal involves US$1.3 M in staged cash payments over four years and a 2.5% NSR. The payment on singing was US$30K that is to be followed by US$45 K in 6 months, US$75 K in 12 months, US$75 K in 18 months, US$120 K in 24 months, US$120 K in 30 months, US$150 K in 36 months and US$685 K in 48 months.

ON SOCIAL RESPONSIBILITY

  • Fortuna Silver Mines (San José mine in Oaxaca) signed an agreement with the Oaxaca Health Secretary and the San José del Progreso Municipality to help the community with the pandemic health emergency.
  • Minera Autlán donated 4,000 tree saplings to the Teziutlan Municipality in Puebla.
  • Minera Saucito informed on actions related to the fight against the pandemic in the Fresnillo Municipality in Zacatecas.
  • Industrias Peñoles celebrated 13 years of the inauguration of the Museum of Metals.
  • Industrias Peñoles informed in measures the company implements to reduce the use of water, and its treatment afterwards.
  • Fresnillo PLC is to distribute 20,000 face masks in Zacatecas city.

Content like what you have just read can be seen at https://gambusinoprospector.com/ and at LinkedIn’s Mexico Mineral Exploration Group.

On the image below: The mineralized porphyry from Cerro San Pedro, San Luis Potosí. Picture by Jorge Cirett.

The Mining and Exploration News in Mexico: Highlights on the Fourth Week of September, 2020.

 

Rich-hematite quartz vein

 

By Miguel A Heredia

During the thirty nine week of the year (September 21th to September 27th, 2020), at least 24 press releases were announced by companies working in Mexico and 11 news published by the media, with eight discussing social issues,  seven disclosing deals and corporate issues, seven informing on exploration results, six announcing financial rounds, four commenting on Mexican issues, two reporting on resources and development of their mine operations, and one communicating production and financial results.  ON MEXICO ISSUES, According to a report by the Bank of Mexico (Banxico), mining in Mexico suffered strong impacts from the COVID-19 pandemic in the first half of 2020. First Majestic provided an update related to its ongoing TAX dispute with the Mexican TAX authority. Resources from the Mining Fund are being used to build an outdoor fitness park at Guadalupe y Calvo, Chihuahua. Alejandro Armenta, senator for MORENA, presented an initiative to nationalize lithium, arguing that it is a strategic mineral for the country’s energy future. It is worrying for the mining sector that voices like this are heard and have weight in making decisions about something extremely delicate without considering the participation of technicians, operators, scientists, businessmen, academics dedicated to mining in Mexico. ON EXPLORATION, In Sonora, Canuc released preliminary exploration results from its San Javier project, Carlyle and its JV partner Riverside reported high grade results from the Cecilia project, Minaurum presented results from the first 4 holes collared in the Europa-Guadalupe vein zone at its Alamos Silver project, and Ridgestone announced drill results from 8 holes collared at its Rebeico project. In Chihuahua, Mammoth provided an update on exploration activities at its Tenoriba project.  In Jalisco, GoGold released the first drilling results from the Salomon-Favor target on its Los Ricos North project.  ON MINING, Hecla reported estimated production results from its San Sebastian mine in Durango for the period January-September, 2020.  ON FINANCING, Advance Gold granted stock options to its directors, key employees, and consultants (Tabasquena project, Zacatecas). Aloro cancelled its previously announced non-brokered private placement (Los Venados project, Sonora).  Comet gave a cleansing notice under section 708A of the corporations acts 2001 (Santa Teresa project, Baja California). Defiance repaid in full the company´s outstanding loan with Windermere Capital Fund SPC (San Acacio project, Zacatecas). Newmont entered into a definitive agreement with Maverix Metals to sell eleven royalties for a total consideration of $90M. Santacruz announced a CAD $6M non-brokered private placement with a lead order from Palisades Goldcorp Ltd., for CADS $3M (Zimapan mine, Hidalgo).   ON RESOURCES AND DEVELOPMENT, Southern Silver will commence a 10,000m drilling program in 20-25 holes which will focus on the development of mineral resources on the east side of its Cerro Las Minitas project, Durango. Xtierra announced its intention to conduct a small drill campaign of five holes for a total of 1,500m at its Bilbao project in Zacatecas.    ON DEALS AND CORPORATE ISSUES, Barksdale signed a definitive agreement to acquire San Javier project in Sonora. Excellon announced that its common shares will commence trading on the NYSE American LCC (La Platosa mine, Durango).  First Majestic announced that it has filed an early warning report for the acquisition of common shares of Silver Dollar (La Joya project, Durango). Global Li-Ion entered into a letter agreement with Grupo Minera Diflor to acquire a 100% interest in the MVZ Au-Ag property in Chihuahua. Reyna Silver appointed new chairman and announced additional changes to the board of directors (Guigui and Batopilas projects, Chihuahua). Silver Tiger announced that it will commence to trade on the OTCQX Best Market under the ticker symbol “SLVTF” (El Tigre project, Sonora).  ON SOCIAL RESPONSIBILITY, Autlan supported communities affected by heavy rains in Hidalgo. La Cantera Desarrollos Mineros, a subsidiary of Peñoles, signed a constitutive act for healthy work returned to its Capela mine located in Guerrero. Fresnillo plc launched its “take care of yourself” campaign that fights against COVID-19 pandemic. Minera Penmont, a subsidiary of Fresnillo plc celebrated 23 years of making history in Caborca, Sonora (La Herradura and Noche Buena mines), ​​with a team of more than 4 thousand people committed to cutting-edge and responsible mining. Dr. Vagón, the ambulating clinic of Grupo Mexico Foundation celebrates six years of operation providing totally free medical services throughout the Mexican Republic. Mina La Colorada, a subsidiary of Pan American Silver, received for the first time the Inclusive Company Distinction (DEI), which accredits it as a company of good labor practices. Fresnillo plc, through Minera San Julian, donated 10 thousand masks to the inhabitants of Parral, Chihuahua. Pan American Silver Mexico carried out a campaign for the use of face masks and delivery of antibacterial kit.

ON MEXICO ISSUES

  • According to a report by the Bank of Mexico (Banxico), mining in Mexico suffered strong impacts from the COVID-19 pandemic in the first half of 2020. All regions had to suspend activities during April and May, since at the beginning practically the entire sector was declared a non-essential activity during the health emergency.
  • First Majestic Silver Corp., provided an update related to its ongoing TAX dispute with the Mexican TAX authority (SAT). The company was informed by its Mexican legal advisors that the Primero Empresa Minera (PEM) transaction will be served with a decision made on September 23, 2020 by the Federal Court on Administrative Matters, nullifying the advance pricing agreement (APA) granted to PEM and directing the TAX authority to re-examine the evidence and basis for the issuance of the APA. The Federal Court decision is appealable to the Circuit Courts. The company´s legal advisers are of the view that the Federal Court´s decision was not arrived following regular procedures, was undertaken hastily, and did not provide opportunity for the presentation of evidence from PEM. The Company continues to assess all of its legal options, both domestic and international.
  • Resources from the Mining Fund are being used to built an outdoor fitness park at Guadalupe y Calvo, Chihuahua, with the goal of generating spaces for healthy recreation to help to maintain a good physical condition of the community population.
  • Alejandro Armenta, senator for MORENA, presented an initiative to nationalize lithium, arguing that it is a strategic mineral for the country’s energy future. Alberto López Santoyo, Director of Mundo Minero stated that it is worrying for the mining sector that voices like this are heard and have weight in making decisions about something extremely delicate without considering the participation of technicians, operators, scientists, businessmen, academics dedicated to mining in Mexico. “The great technical-political errors in the history of Mexico have definitely been those that make an economic activity less competitive. If the government has the intention of producing lithium is fine, but that it participates in the battle field as one more company, like any other protagonist of this new productive context. Let’s not take away competitiveness from mining companies and thousands of capable Mexicans with legitimate intentions to participate in this challenge in a responsible and technically viable manner. Freedom to produce, freedom to compete”.

ON EXPLORATION

  • Canuc Resources Corporation presented preliminary exploration results from its San Javier project in Sonora. The company has conducted reconnaissance geological mapping and rock sampling on the eastern and northeast part of the property and has identified swarms of Fe-matrix hydrothermal breccias over a large area of 900m by 1,200m. One of these individual breccias measures from 30m to 70m in width and has been traced for over at least 800m along strike. This breccia is controlled by two fault structures. To date, 267 rock samples have been collected but assay results are only available for the first 157 samples. Values range from trace to 2,859 g/t Ag and from 74 ppm to 0.59% Cu, with 35 samples exceeding > 100 g/t Ag. Additional work is planned to continue the mapping and sampling on unmapped ground along these breccia zones.
  • Carlyle Commodities Corp., and its JV partner Riverside Resources Inc., announced high grade results from the Cecilia project in Sonora. Riverside is acting as the JV operator and has focused on channel sampling at the San Jose and North Breccia targets. First results from 21 rock samples returned high grades including 43.2 g/t Au over 0.4m wide, 5.6 g/t Au over 0.6m wide, and 2.5 g/t Au over 0.1m wide. In addition, Riverside is also working on drilling preparation, including construction of drill pads and improvement of foot/trail roads, conducting a drone aeromagnetic survey, carrying out a detailed mapping and sampling of the main dome target at Cerro Magallanes, and conducting an IP survey to define the depth of potential conductors interpreted to be sulphide zones.
  • Minaurum Gold Inc., presented drill results from the first 4 holes collared in the Europa-Guadalupe vein zone at its Alamos Silver project. Significant drill intercepts were encountered in hole AL20-042 with 404 g/t Ag, 0.54% Cu, 1.3% Pb, 1.8% Zn over 3.50m, including 999 g/t Ag, 1.29% Cu, 3% Pb, 3% Zn over 1.55m, and hole AL20-047 with 356 g/t Ag, 0.39% Cu, 0.4% Pb, 0.6% Zn over 6.35m, including 2,090 g/t Ag, 1.98% Cu, 2.5% Pb, 2.4% Zn over 0.7m. Drilling will continue to test down-dip as well as along strike of vein intersections at Europa- Guadalupe at 75-150 m increments.
  • Ridgestone Mining Inc., announced results from 8 holes totalling 1,238m collared at its Rebeico project in Sonora. Significant drill intersects were encountered in hole 20REB018D with 0.54% Cu over 29.15m, including 1.95% Cu over 2.25m; hole 20REB022D with 2.62 g/t Au and 0.54% Cu over 0.65m; and hole 20REB023D with 3.82 g/t Au and 0.75% Cu over 4.35m, including 8.61 g/t Au and 0.5% Cu over 1.55m. “Drilling results continues to extend the lateral footprint of mineralization. These latest results definitely warrant follow up and we will commence a strategic targeting exercise for follow-up drilling”.
  • Mammoth Resources Corp., provided an update on exploration activities at its Tenoriba project in Chihuahua. It also received a notification from Minera Centerra, its JV partner on Tenoriba project, about its decision to cease exploration activities in Mexico, including at Tenoriba, however Centerra expressed their enthusiasm for drilling the Tenoriba project. Over the last 6 months, Mammoth-Centerra geologists have been reinterpreting the geophysical surveys, carrying out extensive surface lithological and structural mapping and sampling, and conducting drill core mapping and sampling, including Terraspec alteration clay analysis. In mid-August Centerra filed an application for permission to drill up to 139 drill locations at Tenoriba and a response/approval of this permit application is expected within weeks. Two drill contractors were preparing bids on the Centerra drill program.
  • Xtierra Inc., announced its intention to conduct a small drill campaign of five holes for a total of 1,500m at its Bilbao project. The first target area is located adjacent to and west of the main Bilbao Silver-Lead-Zinc deposit, while the second target is called El Cabezon, a former Ag mine operated by the Frisco Industrial Group.
  • GoGold Resources Inc., released the first drilling results from the Salomon-Favor target on its Los Ricos North project. Highlights include hole LRGS-20-001 with 0.24 g/t Au and 280 g/t Ag (3.98 g/t AuEq or 298 g/t AgEq) over 14m, including 0.51 g/t Au and 699 g/t Ag (9.82 g/t Au and 737 g/t AgEq) over 5m; hole LRGF-20-001 with 0.36 g/t Au and 142 g/t Ag (2.25 g/t AuEq and 168 g/t AgEq) over 41.7m, including 1.12 g/t Au and 444 g/t Ag (7.05 g/t AuEq or 529 g/t AgEq) over 11m; and LRGF-20-004 with 0.24 g/t Au and 74 g/t Ag (1.24 g/t AuEq or 93 g/t AgEq) over 41.1m, including 1.45 g/t Au and 419 g/t Ag (7.04 g/t AuEq or 528 g/t AgEq) over 4.1m. The drilling program will continue to test the known zones of mineralization along strike and down dip from the historical underground workings of the La Trini deposits located 5km northwest.

ON MINING

  • Hecla Mining Company reported preliminary production results for the period January-September, 2020 from its San Sebastian mine in Durango. Hecla produced 6K Oz Au and 0.8M Oz Ag

ON FINANCING

  • Advance Gold Corp., granted stock options to its directors, key employees, and consultants to purchase up to 2Mshares over a five year term (Tabasquena project, Zacatecas).
  • Aloro Mining Corp., reported that due the COVID-19 pandemic, it cancelled its previously announced non-brokered private placement (Los Venados project, Sonora).
  • Comet Resources Ltd., gave a cleansing notice under section 708A of the corporations acts 2001. The company issued a total of 11.5M fully paid ordinary shares and 65M options, as per the proposed 3B forms lodged on 25 August 2020 and 21 April 2020. (Santa Teresa project, Baja California).
  • Defiance Silver Corp., repaid the total outstanding balance of $1,312,018 to Windermere Capital Fund SPC including accrued interest. (San Acacio project, Zacatecas).
  • Newmont Corporation entered into a definitive agreement with Maverix Metals Inc., to sell eleven royalties for a total consideration of $90M, consisting of $15M in cash, 12M Maverix common shares, and up to $15M in contingent cash payments payable upon completion of certain milestones. The royalties provide exposure to five flagship gold assets owned and operated by growth-oriented mining companies. The portfolio includes royalties on Camino Rojo and Ana Paula in Mexico, Cerro Blanco in Guatemala, and Mother Lode and Imperial in the United States.
  • Santacruz Silver Mining ltd., announced a CAD $6M non-brokered private placement with a lead order from Palisades Goldcorp Ltd., for CADS $3M. The proceeds from the private placement are expected to be used by the company to purchase underground equipment for its Zimapan property in Hidalgo and for general working capital and corporate purposes.

ON RESOURCES AND DEVELOPMENT

  • Southern Silver Exploration Corp., will commence a 10,000m drilling program in 20-25 holes which will focus on the development of mineral resources on the east side of its Cerro Las Minitas project, Durango through step-out drilling from previously identified high-grade, strongly silver-enriched mineralization in the Mina La Bocona and South Skarn target areas. Some meterage will also be used to further extend mineralization at the Las Victorias target.
  • Xtierra Inc., announced its intention to conduct a small drill campaign of five holes for a total of 1,500m at its Bilbao project. The first target area is located adjacent to and west of the main Bilbao Silver-Lead-Zinc deposit, while the second target is called El Cabezon, a former Ag mine operated by the Frisco Industrial Group.

ON DEALS AND CORPORATE ISSUES

  • Barksdale Resources Corp., signed a definitive option agreement with Tusk Exploration Ltd., to acquire the San Javier del Cobre project in Sonora.
  • Excellon Resources Inc., announced that its common shares will commence trading on the NYSE American LCC under the ticker symbol “EXN” (La Platosa mine, Durango).
  • First Majestic Silver Corp., announced that it has filed an early warning report for the acquisition of common shares of Silver Dollar. First Majestic has acquired ownership and control of 5,146,401 shares, representing approximately 14.9% of the outstanding shares (La Joya project, Durango).
  • Global Li-Ion Graphite Corp., entered into a letter agreement with Grupo Minera Diflor S.A.de C.V., to acquire a 100% interest in the MVZ Ag-Au property in Chihuahua. The 1,200 hectare property hosts 3 past producing Ag-Au deposits: El Moro, La Virginia and La Zorra (MVZ Property). The Property is situated within Grupo Minero Diflor’s Pajarito project which covers an area of 10 X 25 km.
  • Reyna Silver Corp., appointed new chairman and announced additional changes to the board of directors (Guigui and Batopilas projects, Chihuahua).
  • Silver Tiger Metals Inc., announced that it will commence to trade on the OTCQX Best Market under the ticker symbol “SLVTF” (El Tigre project, Sonora).

ON SOCIAL RESPONSIBILITY

  • Compañía Minera Autlan S.A. B de C.V., supported more than 6,100 people from Tepehuacan de Guerrero and 705 people from Molango affected by the heavy rains in Hidalgo which caused landslides and floods in these entities. To date, communication between the communities has been completely reestablished and significant progress has been made in cleaning up the material that was carried by the rain (Molango mine, Hidalgo).
  • La Cantera Desarrollos Mineros, a subsidiary of Peñoles, signed a constitutive act for healthy work returned to its Capela mine located in Guerrero. The new work normality is accompanied by activities and sanitary measures in order to reduce the risks of COVID-19.
  • Fresnillo plc launched in Fresnillo, Zacatecas, its “take care of yourself” campaign that fights against COVID-19 pandemic. The company delivered 150,000 face masks on the streets of the downtown area.
  • Minera Penmont, a subsidiary of Fresnillo plc, celebrated 23 years of making history in Caborca, Sonora (La Herradura and Noche Buena mines) ​​with a team of more than 4 thousand people committed to cutting-edge and responsible mining. Since its arrival in 1997, it has meant an economic, social and environmental watershed for the state and, particularly for the region and its surroundings.
  • Vagón, the ambulating clinic of Grupo Mexico Foundation celebrates six years of operation providing totally free medical services throughout the Mexican Republic. It offers from general consultations to specialized ones; currently, it has five specialties: Ophthalmology, Dermatology, Pediatrics, Gynecology and Geriatrics. Dr. Vagón, with 17 wagons and 65 people as part of the crew, including administrative and medical personnel, has the capacity to serve 500 people a day.
  • Mina La Colorada, a subsidiary of Pan American Silver Corp., received for the first time the Inclusive Company Distinction (DEI), which accredits it as a company of good labor practices. This award is a recognition given by the Federal Government through the Ministry of Labor and Social Welfare to companies, academic institutions, organizations, federal, state and municipal public agencies that implement and operate inclusive, egalitarian and equitable labor policies for the benefit of workers, without discrimination towards people in vulnerable situations.
  • Fresnillo plc, through Minera San Julian, donated 10 thousand masks to the inhabitants of Parral, Chihuahua. The company considers that these measures are part of the strategy for the health care of the inhabitants, since, together with an information campaign, remind the population of the importance of maintaining sanitary measures in the current situation.
  • Pan American Silver Corp., through Minera Dolores, Chihuahua and Mina La Colorada, Zacatecas carries out a campaign for the use of face masks and delivery of antibacterial kit to reduce the risk of contracting COVO¡ID-19. More than 2,500 kits (antibacterial spray, wet towels, antibacterial gel, face masks) as well as triptychs, were delivered to the elderly, single mothers, vulnerable people, the general population, as well as personnel who work in government offices of the H. Town Hall of the municipalities of Sombrerete and Chalchihuites, Zacatecas; Municipality of Madera, Chihuahua and all the workers of Mina La Colorada and Minera Dolores.

Content like what you have just read can be seen at https://gambusinoprospector.com/ and at LinkedIn’s Mexico Mineral Exploration Group.

On the picture above, a rich-hematite quartz vein displaying boiling texture from a low-sulphidation epithermal vein system in a prospect in Sinaloa, Mexico.  Photo by Miguel A Heredia

The Mining and Exploration News in Mexico: Highlights on the Second Week of September, 2020.

Stibnite in a fine grained quartz vein.

By Miguel A Heredia

During the thirty seven week of the year (September 7th to September 13th, 2020), at least 24 press releases were announced by companies working in Mexico and 13 news published by the media, with ten disclosing deals and corporate issues, seven discussing social issues, six commenting on Mexican issues, five informing on exploration results, five announcing financial rounds, two reporting on resources and developments of their mine operations, and two communicating production and financial results.  ON MEXICO ISSUES, Deputy Mario Delgado from MORENA party presented a reform to eliminate trust funds, including the Mining Fund. Mexico intends to lead lithium production. Federal Deputy Monica Almeida of the PRD party stated that the disappearance of the undersecretary of Mining must be re-considered. Mining companies operating in Mexico have cut their capital investment budgets by 20% on average in 2020 due to disruptions caused by COVID-19. The company Roca Fosforica Mexicana (Rofomex) seeks to expand its mining area in Baja California Sur.  ON EXPLORATION, In Sonora, Colibri received an exploration permit to begin a trench program at its Evelyn project, and Silver Tiger provided an exploration update for its El Tigre project. In Sinaloa, Brigadier provided an exploration update on its Picachos project, and Oroco initiated a 3D IP survey at its Santo Tomas project. In Durango, Canasil released results from 2 drill holes collared recently at its Nora project. ON MINING, Excellon provided an operation update on its La Platosa mine in Durango. Consolidated Zinc reported H1, 2020 production and financial results from its Plomosas mine in Chihuahua.  ON FINANCING, Mag Silver completed its previously announced at the market equity program for gross proceeds of USD $50M (Juanicipio property, Zacatecas). Comet Resources announced that it will be conducting a placement to raise gross proceeds of $2M (Santa Teresa project, Baja California). Excellon completed its share consolidation (La Platosa mine, Durango). Monarca completed its previously announced shares for debt transaction to settle an aggregate of $301,324 owing to certain officers, directors and services providers of the company. Sable closed its previously announced private placement for total gross proceeds of approximately $9.9M (Margarita and Vinata project, Chihuahua). ON RESOURCES AND DEVELOPMENT, Bacanora provided an operational update of its Sonora Lithium project in Sonora. Capstone provided updated proven and probable mineral reserves and positive results of an updated technical report for its Cozamin mine in Zacatecas.    ON DEALS AND CORPORATE ISSUES, Excellon announced that it has applied to list on the New York Stock Exchange (NYSE) American (La Platosa mine, Durango).  Mithril announced that its CEO was appointed as Managing Director (Copalquin project, Durango). Sonoro announced results of its annual general meeting of shareholders and changed its name from Sonoro Metals Corp. to Sonoro Gold Corp (Cerro Caliche project, Sonora). Alien entered into an exclusivity agreement with Capstone in respect of the potential farm out of an interest in its Donovan 2 Copper-Gold project in Zacatecas. Almaden announced the decision of the Second District Court in Puebla in respect of its environmental permit application for its Ixtaca project in Puebla.  Argonaut entered into a definitive agreement for the sale of its Ana Paula property in Guerrero.  Consolidated Zinc secured an agreement with Industrias Peñoles to sale the 100% of the Zn concentrate produced by the company in 2021. Newmont appointed Susan N Story to its board of directors and achieves gender parity for non-executive directors (Peñasquito mine, Zacatecas).  Southern Silver presented results from its annual general meeting of shareholders (Cerro Las Minitas project, Durango). ON SOCIAL RESPONSIBILITY, First Majestic invested USD $3.8M in local communities where it operates.  Fresnillo plc, continued donating personal equipment to prevent infections by COVID-19 in Caborca, Sonora. The Municipal President of Fresnillo, Zacatecas delivered the first stage of the rainwater collector with an investment of MXP $6M from the Mining Fund. The Municipal President of Cuencame, Durango announced that MXP $16.6M from the Mining Fund were invested in the construction of domes and paved streets, installation of electrical network, potable water and drainage in several communities in Cuencame, Durango. Grupo Mexico offered more than 130 weekly workshops via social networks generating content for the community. Minera Media Luna (Torex) improved public spaces in the Atzcala community in Guerrero. The Peñoles nursery garden continues donating trees to people seeking to expand the green folder in their home, plaza or a larger space for the population, and continue supporting the community with other social activities.

ON MEXICO ISSUES

  • Deputy Mario Delgado from MORENA party presented a reform to eliminate trust funds, including the Mining Fund. A period is proposed for the Ministry of Finance and Public Credit and the Welfare Bank (Banco del Bienestar, created by MORENA) to proceed to the extinction of the Public Administration and Payment Trust called “Fund for the Development of Mining Production Zones” (Mining Fund), in accordance with provided for in the Federal Budget and Fiscal Responsibility Law. Obviously, this is not the reason and the goal the Mining Fund was created for.
  • Mexico intends to lead lithium production since lithium is required to make rechargeable batteries, and the demand for this mineral has multiplied in the last decade, with the rise of laptops and smartphones. Annual sales of batteries made from lithium-ion batteries are projected to reach a value of $100B in 2029 and about $116B in 2030, according to Bloomberg New Energy Finance. While Mexico’s reserves are not yet certified, the size of the deposit found in Sonora (Sonora Lithium project owned by Bacanora)- which, according to Mining Technology, is the largest deposit under development in the world – placed the country on the radar of global lithium investors. The project will be the first to produce significant volumes of lithium in Mexico. Initially, production is estimated to approach 17,500 tonnes per year of lithium carbonate, which will double to 35,000 tonnes starting in 2026, after a projected expansion in its investment of USD $380M.
  • Monica Almeida, Federal Deputy of the PRD party, stated that the disappearance of the undersecretary of Mining must be re-considered and warned that neither the economic adjustments nor the so-called “republican austerity” should be a pretext for the disappearance of an undersecretary that served a sector of utmost importance for Mexico, since at the world is within the top 10 in the production of 19 minerals. This measure was not shared by the members of the country’s mining sector, among which are the Mexican Mining Chamber (CAMIMEX), the Association of Mining Engineers, Metallurgists and Geologists of Mexico (AIMMGM), the Mining Task Force of the Canadian Chamber of Commerce in Mexico (CANCHAM), the Mining Clusters of Chihuahua, Guerrero, Sinaloa, Sonora and Zacatecas, the College of Mining Engineers, Metallurgists and Geologists of Mexico (CIMMGM) and the organization Mujeres en la Mineria – WIM Mexico; who have openly expressed their disagreement with the measure. It should be remembered that the mining-metallurgical sector in Mexico contributes 2.4% of GDP. Also this year, our country ranks first in silver production worldwide, generating 379 thousand direct jobs and 2.4 million indirect ones.
  • Mining companies operating in Mexico have cut their capital investment budgets by 20% on average in 2020 due to disruptions caused by COVID-19. Updated estimates from nine of the country’s largest gold, silver and copper producers show total spending of USD $1.95B, down USD $488M from the projected amount of USD $2.44B before the pandemic.
  • The company Roca Fosforica Mexicana (Rofomex) seeks to expand its mining area in San Juan de la Costa north of La Paz Baja California Sur. Rofomex filed an environmental permit to explore outside the boundaries of the mining project. The exploration plan established an area where the project will be carried out. It is more than 1,203 ha and contemplates the completion of works for the drilling of 7 holes.

ON EXPLORATION

  • Colibri Resource Corporation received an exploration permit to begin a trench program at its Evelyn project. The company plans to dig up to 2.2km of trenches in up to 13 separate areas on Evelyn project in order to extend mineralization at selected occurrences and to provide exposure for geological and structural mapping of veins and structures.
  • Silver Tiger Metals Inc., provided an update on ongoing exploration at its wholly-owned El Tigre Silver project in Sonora. The company is currently conducting a drill program with two rigs focused on the Caleigh, the Protectora and the Fundadora veins, all of which outcrop on surface and are exposed in exploration drifts in the 3km north of the historic El Tigre mine.
  • Brigadier Gold Limited provided an exploration update on its Picachos project in Sinaloa. The company is preparing a fully financed 5,000m drilling program in approximately 40 holes targeting four high grade Au-Ag veins found within the Colomeca vein system, comprised of several sub-parallel veins over a 1.5km wide zone. In addition, Brigadier is also planning approximately 3 line-km of trenching across several historic sample sites to follow-up anomalies identified by the historic work to define drill targets. “Brigadier intends to have drills turning by the third week of September and look forward to providing updates as results become available.”
  • Oroco Resource Corp., initiated a 3D resistivity and IP survey at its Santo Tomas project in Sinaloa. The survey is targeted to cover an area of approximately 10 km of the property which will encompass the mineralized South Zone, North Zone and the Brasiles Zone at Santo Tomas. The survey comprises a dipole – pole – dipole arrangement and targets the layout of some 26 Rx (receiver) lines spaced at 200m.
  • Canasil Resources Inc., released results from 2 initial drill holes collared at its Nora project in Durango. Hole NCR-20-01tested the Candy vein and intersected 1.6 g/t Au, 440 g/t Ag, 2.51% Cu, 2.1% Pb, and 0.61% Zn over 0.29m, while hole NCR-20-02 encountered 0.72 g/t Au, 21 g/t Ag, 0.1% Cu, 0.2% Pb, and 0.5% Zn over 4.8m, including 1.81 g/t Au, 62 g/t Ag, 0.08% Cu, 0.1% Pb, and 0.61% Zn over 0.38m. Drill hole NRC-20-03, targeted below NRC-20-02 has been completed to a depth of 302 metres, and NRC-20-04 is in progress, targeted below NRC-20-01 as planned.

ON MINING

  • Excellon Resources Inc., provided an operation update on its La Platosa mine in Durango. The company achieved a strong production after resuming mining and milling activities in mid-June, 2020. In July, 2020 the company mined and processed 7,044 and 7,408 tonnes respectively with grades of 528 g/t Ag, 5.8% Pb, and 7.7% Zn at metallurgical recoveries of 92.4%, 85.7%, and 77.6% respectively, to produce 116.3K Oz Ag, 972K Lb Pb, and 7K Lb Zn (198.5K Oz AgEq).
  • Consolidated Zinc Ltd., reported H1, 2020 production and financial results from its Plomosas mine in Chihuahua. The company mined in H1, 2020, over 12,332 tonnes of 16.4% Zn and 8.6% Pb to produce 2.25M Lb of payable Zn, 546.7K Lb of payable Pb, and 455 Oz of payable Ag sold in Zn and Pb concentrates. Consolidated Zinc reported a net loss after income tax of USD $2.19M, a profit of USD $0.56M, total assets of USD $4.14M, and total liabilities of USD $3.79M. Total cash reported was USD $0.77M and borrowings were USD $0.98M.

ON FINANCING

  • Mag Silver Corp., completed its previously announced at the market equity program for gross and net proceeds of USD $50M and USD $48.62M respectively. Net proceeds will be used to fund the completion of construction of the Juanicipio project, with any reminder to fund further exploration of Juanicipio and other projects, and for working capital and general corporate purposes.
  • Comet Resources Limited announced that it will be conducting a placement for gross proceeds of $2M. The offer under the plan will raise a maximum of $500K on the terms and conditions contained in this letter. In conjunction with the placement, this will provide the company with additional funds of up to $2.5M. Part of the funds raised will be used for ongoing exploration at Santa Teresa project in Baja California as well as for the payment of costs associated with the plan and placement and general working capital.
  • Excellon Resources Inc., completed its share consolidation in connection with its plan to trade on the NYSE American LLC, which is now effective. Excellon’s shares are expected to commence trading on the NYSE American by the end of September under the ticker symbol “EXN” (La Platosa mine, Durango).
  • Monarca Minerals Inc., completed its previously announced shares for debt transaction to settle an aggregate of $301,324 owing to certain officers, directors and services providers of the company. The amount settled includes $194K out of $342K of accrued directors, management, and consulting fees (Tejamen property, Durango).
  • Sable Resources Ltd., closed its previously announced private placement for total gross proceeds of approximately $9.9M. Net proceeds will be used for exploration and general corporate and working capital purposes (Margarita and Vinata project, Chihuahua).

ON RESOURCES AND DEVELOPMENT

  • Bacanora Lithium plc., provided an operational update of its Sonora Lithium project in Sonora. The pilot plant has completed the bulk sampling required for the Sonora plant, the same that were submitted to relevant partners in China and USA for optimization of the final design. GR Engineer completed its concentrator design work and will integrate this into the overall project scope, and its JV partner Ganfeng Lithium completed its flow sheet design testwork for the production of battery grade lithium from the samples provided by the pilot plant.  Bacanora therefore remains on schedule to commence initial site works at Sonora in H1 2021, subject to completion of financing, which would enable commencement of production at the plant in 2023.
  • Capstone Mining Corp., provided updated proven and probable mineral reserves and positive results of an updated technical report for its Cozamin mine in Zacatecas. Proven and probable reserves as of April 30, 2020 are 10,178,000 tones of 1.79% Cu, 41 g/t Ag , o.36% Zn and 0.05% Pb for a total of 2M Lb Cu, 13.5M Oz Ag, 79.4M Lb Zn, and 11M Lb Pb. Capstone updated life of mine plan with annual average Cu and Ag production increased by 70% to 61.4M Lb Cu and 43% to 1.75M Oz Ag respectively. Average annual C1 costs (net of by-products) are expected to move 23% lower to $0.67 per payable Lb Cu. It also announced that ramp-up to 1.35 million tonnes milled per annum (“tpa”) by Q2 2021 is on time and budget, that tailings management transformation activities are progressing on schedule, and that a PFS of an underground paste backfill system is underway. Finally, it also reported that a new step-out hole drill program totalling 80 holes targeting the down dip extension to the southeast of both Vein 10 and Vein 20 is underway. Hole S499 and S503 intersected high grade polymetallic copper, zinc, lead and silver in a 650-meter step-out from the current mineral resource. A 1 km exploration drift is being considered to provide a drilling platform to target this new area.

ON DEALS AND CORPORATE ISSUES

  • Excellon Resources Inc., announced that it has applied to list its issued and outstanding common shares on the New York Stock Exchange (NYSE) American, LLC., under the ticker symbol “EXN” (La Platosa mine, Durango).
  • Mithril Resources Limited announced that its CEO was appointed as Managing Director (Copalquin project, Durango).
  • Sonoro Metals Corp., presented results from its annual general meeting of shareholders and announced it has changed its name from Sonoro Metals Corp., to Sonoro Gold Corp., and will commence to trade with the new ticker symbol “SGO” (Cerro Caliche project, Sonora).
  • Alien Metals Ltd., entered into an exclusivity agreement with Capstone Mining Corp., in respect of the potential farm out of an interest in its Donovan 2 Copper-Gold project in Zacatecas. The agreement provides for a 45-day period for Capstone to undertake due diligence to their satisfaction. If the parties decide to move into a definitive agreement, then Capstone could earn-in to the Donovan 2 property through a combination of carried expenditures and cash payments.
  • Almaden Minerals Ltd., announced the decision of the Second District Court in Puebla in respect of its environmental permit application for its Ixtaca project in Puebla. “The company challenged an October, 2019 decision by Mexico’s environmental authority (“SEMARNAT”) to suspend its review of the Ixtaca project’s environmental permit application (“MIA”) until resolution of legal proceedings (the “Amparo”) regarding certain of the Company’s mineral concessions which encompass the area of the Ixtaca project. In its recent decision, the Court dismissed the “incident” principally on the basis that SEMARNAT is not a party to the Amparo. Furthermore, in a related communication with SEMARNAT, the Court also confirmed that the existence of the Amparo does not prevent SEMARNAT from resolving the MIA permit application and that SEMARNAT is free to act within its jurisdiction and authority in respect of the MIA review. The Ministry of the Economy, the Mining Authorities, the Congress, Senate, and the Office of the Presidency all made submissions to the Court as part of this decision. The Company awaits a response from SEMARNAT to the Court decision”.
  • Argonaut Gold Inc., entered into a definitive agreement for the sale of its Ana Paula property in Guerrero. Total consideration to Argonaut includes USD $30M on closing, CAD $10M upon the announcement of commencement of construction, a 1% NSR, and 9.9% of the outstanding common shares of the acquiring company, which will be formed by a business combination of 1252201 BC Ltd (“AP Mining”) and Pinehurst Capital II Inc. (“Pinehurst”), creating a new publicly traded gold development company (the “Resulting Issuer”).
  • Consolidated Zinc Limited secured an agreement with Industrias Peñoles to sale under favorable terms the 100% of the Zn concentrate produced by the company in 2021 at its Plomosas mine in Chihuahua.
  • Newmont Corporation appointed Susan N Story to its board of directors and achieves gender parity for non-executive directors (Peñasquito mine, Zacatecas).
  • Southern Silver Exploration Corp., presented results from its annual general meeting of shareholders. In this meeting shareholders re-elected directors and approved the purchase of Electrum Global Holdings L.P.’s 60% ownership interest in Southern Silver Holdings Limited and indirect 60% interest in the Cerro Las Minitas property in Durango.

ON SOCIAL RESPONSIBILITY

  • First Majestic Silver Corp., invested during 2019, USD $3.8M in local communities where it operates, destined to health programs, infrastructure, access to water, and youth projects. In 2019, First Majestic planted 105,730 native plants through reforestation initiatives, and also recycled more than 80% of the water used in its operations. At the end of 2019, First Majestic employed a total of 4,681 people: 3,305 employees and 1,376 contractors, distributed in the six operating mines of the company: San Dimas, and La Parrilla, in Durango; La Encantada, in Coahuila; Santa Elena, in Sonora; Del Toro, in Zacatecas, and San Martín, in Jalisco.
  • Fresnillo plc, continued donating personal equipment to prevent infections by COVID-19 in Caborca, Sonora. The company delivered 8,000 face masks as part of a social program to raise awareness among the population about the importance of health care to avoid the spread of the virus.
  • The Municipal President of Fresnillo, Zacatecas delivered the first stage of the rainwater collector with an investment of MXP $6M from the Mining Fund. This work has 180 linear meters and has favored the inhabitants of the El Vergel subdivision and neighboring colonies since it is channeled to rainwater and prevents floods.
  • The Municipal President of Cuencame, Durango announced that MXP $16.6M were invested in the construction of domes and paved street, installation of electrical networks, potable water and drainage in several communities in Cuencame, Durango. In addition, she also reported that more than two thousand direct and indirect jobs were generated.
  • Grupo Mexico S.A.B de C.V., offered more than 130 weekly workshops via social networks generating content for the community with a focus on prevention, healthy distance and stay at home, as well as implementation of workshops in the areas of education and culture, health and safety, environment and sports.
  • The Peñoles nursery garden continues donating trees to people seeking to expand the green folder in their home, plaza or a larger space for the community. Goal of the program is to reforest public spaces in order to maintain an ecological balance. The company also is carrying out cleaning and disinfection of classrooms, furniture and teaching materials at a Federal Middle School #2.
  • Minera Media Luna (Torex Gold Resource) improved public spaces in the Atzcala community in Guerrero. Among the activities carried out were the pruning of trees, painting of sidewalks and fences, construction of concrete tops, cleaning of planters, reforestation, cleaning in the elementary school and kindergarten, placement of fencing in the field, replacement of lights and other activities.

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, stibnite in a fine grained quartz vein from an epithermal vein system in a prospect in San Luis Potosi, Mexico.  Photo by Miguel A Heredia

 

The Mining and Exploration News in Mexico: Highlights on the First Week of September, 2020

By Jorge Cirett

During the 36th week of the year (August 31st to September 6th, 2020), at least 22 press releases were announced by companies working in Mexico. The dominant news on the country relating to the mining industry during the week, was the cancellation of the Sub Secretary of Mining (created during the last presidential term), headed by Francisco Quiroga, who had gained the trust of the enterprises and organizations of the industry by his relentless and hands-on daily effort to help better the mining industry in Mexico. He will be missed, unlike his predecessor. ON MEXICO ISSUES, the Sub Secretary of Mining was cancelled, its role absorbed within the Economy Secretary; loud complaints from the mining industry organizations followed, to fall on deaf ears. Pending investments in mining for the near future of US$1991 M. The Sonora Mining Fund Committee approved the investment of US$3.5 M on an aqueduct. FIFOMI has US$164 M in current credits to the mining industry. The Mining Fund is gone, for the purposes it was created for. (This is a measure taken by the actual federal government against the opinion of all mining enterprises and organizations. In my personal point of view, it opens the way to the use of the funds in a very centralized manner, same that can be exploited for political gains by those in power. There was just no need for this change). The very Mexican “illegal mine blockade roulette” now struck Equinox’s Los Filos mine in Guerrero. ON EXPLORATION, in Baja, Comet Resources updated on its Santa Teresa property. In Sonora, Redstar Gold updated on its Cumaro project. In Sinaloa, Viszla Resources released drilling results at Panuco. In Veracruz, Azucar Minerals released drilling results from El Cobre.  ON MINING, Santacruz Silver reported second quarter 2020 results. Equinox Gold’s Los Filos mine in Guerrero is affected by an illegal blockade. ON FINANCING, seven companies made announcements regarding the opening or closing of financing rounds: Southern Silver Exploration ($456 K), Barksdale Resources ($6.3 M), GoGold Resources (C$30 M), Silver Dollar Resources ($10.5 M), Inomin Mines ($400 K), Americas Gold and Silver (C$39.4 M), Alien Metals (£1.25 M). Gold79 Mines, Golden Tag Resources and Redstar Gold granted stock options to officers, directors and consultants. ON RESOURCES AND DEVELOPMENT, Silver Bull Resources updated on the legal battle and an illegal blockade at its Sierra Mojada project in Coahuila. ON DEALS AND CORPORATE ISSUES, Odyssey Marine Exploration received funds for the legal battle to obtain the government permit to mine its Exploraciones Oceánicas phosphate project offshore Baja California Sur. Tarachi Gold acquired the Juliana group of properties, increasing the size of its Tarachi property to 3,708 hectares. Inomin Mines executed the agreement on the acquisition of the La Gitana and Peña Blanca properties in Oaxaca. ON SOCIAL RESPONSIBILITY. Peñasquito, First Majestic, Minera San Javier, Alamos Gold and SilverCrest informed on donations, community involvement and safety measures on the areas near their operations.

ON MEXICO ISSUES

  • Francisco Quiroga, in his last day as Sub-Secretary of Mining, called for the AIMMGM (Asociación de Ingenieros Mineros, Metalurgistas y Geólogos de México) to play a leading role in the transformation of the industry and its relationship with the public sector.
  • The AIMMGM installed the newly elected board for the 2020-2022 period.
  • The Secretaría de Economía announced the cancellation of the Mining Sub-Secretary, onward from September 1st, 2020.
  • The cancellation of the Mining Sub-Secretary by the federal government brought loud complaints from companies and organisms within the industry (not that these complaints are to be attended to). The Cámara Minera de México (CAMIMEX), the Asociación de Ingenieros Mineros, Metalurgistas y Geólogos de México (AIMMGM), the Mining Task Force of the Cámara de Comercio del Canadá en México, the Sonora, Chihuahua, Guerrero, Sinaloa and Zacatecas Mining clusters, the Colegio de Ingenieros de Minas, Metalurgistas y Geólogos de México (CIMMGM) and the organization Mujeres en la Minería (WIM Mexico) extended its congratulations to Francisco Quiroga, departing Mining Sub-Secretary and expressed the profound disagreement for the disappearance of the Sub Secretary of Mining.   
  • Camimex (Cámara Minera de México) informed Mexico has a list of projects that add up to $1,991 M dollars in programmed investment. Amongst these are the Campo Morado mine in Guerrero, La Yaqui Grande in Sonora, as well as the Orysivo project in Chihuahua, the Centauro Profundo project in Sonora and the Media Luna project in Guerrero. Mexico had a production peak of 123,364 kg of gold in 2015, same that has declined to 73,451 kg in 2019.
  • The Mining Fund Sonora Committee approved the investment of MX$75 M pesos (US$3.5 M) for the construction of the Macoyahui-Alamos aqueduct. The project includes 24.5 Km of PVC tubing and five pumping stations.
  • INEGI informed the mining activity is resuming after the COVID lockdown. Sulphur, iron,, lead, gold, copper, silver, fluorite are among the commodities that have seen their production significantly increased. In January 2020 the industry generated 381,456 direct jobs and more than 2 M indirect jobs, according to the IMSS.
  • Request for the Mining Sub Secretary to stay in Chihuahua by Omar Bazán, deputy, and the Chihuahua Mining Cluster.
  • The Fideicomiso de Fomento Minero (FIFOMI) has $3,530 M pesos (US$164 M) on current credits to the mining sector.
  • The Mining Fund is gone, for the purposes it was created for. Graciela Márquez, Economy Secretary confirmed the resources no longer are going to be distributed among mining municipalities, but through different agreements with government organisms and federal programs to help mining communities.
  • Graciela Márquez, Economy Secretary, stated the disappearance of the Mining Sub-Secretary is not to affect the mining industry as all relevant structures stay in place (We beg to disagree).

ON EXPLORATION

  • Radius Gold Inc. informed on exploration at its Amalia and Plata Verde projects in Chihuahua. At Amalia, “phase 4 drilling funded by JV partner Pan American Silver remains on stand-by due to COVID-19. Semarnat, the permitting agency in Chihuahua, has returned to work on a limited scale and Pan American has recently provided updated information requested by Semarnat”. At Plata Verde, there is advance in the signing of agreements to expand the property package. “The next phase of field work will consist of geophysical programs to identify feeder systems and expansions of the known mineralization under the thin (>100m) cover volcanics”.
  • Redstar Gold Corp. announced its Cumaro project in Sonora is adjacent to SilverCrest’s Picacho property. “Previous drilling on SilverCrest Metals’ Picacho vein, two kilometres north of the Cumaro property, returned intersections including 13.9 metres at 16.22 grams per tonne (g/t) gold and 33.9 g/t silver in hole PDD07-013, and 4.1 metres at 3.86 g/t gold and 35.0 g/t silver…” in other hole on the Dos Amigos vein. The company believes there is a down-thrown block on the eastern side of the property, where the extensions of the veins exposed on the western side could be present on a much shallower level.
  • Comet Resources Ltd. Informed in a corporate presentation on its Santa Teresa property in Baja California. Santa Teresa is a high-grade mesothermal lode gold deposit (ie.- orogenic gold) with an existing NI 43-101 inferred resource of 64 K Oz Au capped at 20 gpt Au, with a cutoff grade of 4 gpt Au and average grade of 8 gpt Au. Historical drilling has intersected quartz veins grading up to 958 gpt Au over 1 m, and multiple other drill results above 30 gpt Au. The deposit is open along strike and at depth.
  • Vizsla Resources Corp. announced a fourth new discovery at its Panuco project in Sinaloa. The first four drill holes at the Tajitos vein have been completed on the Cinco Señores vein corridor. Highlighted intercepts from the three first drill holes comprise 4.5 m @ 1,200 gpt Ag, 7.29 gpt Au (including 1.15 m @ 2,210 gpt Ag, 16.13 gpt Au); 1.15 m @ 812 gpt Ag, 4.59 gpt Au. ”The Tajitos vein zone is composed of a quartz breccia vein with an early white locally banded quartz supporting andesite lithic clasts, followed by a later white to greyish quartz supporting brecciated clasts of earlier white quartz veins. This zone was then cut by a later white to clear quartz vein with local dark bands or patches of fine-grained sulphides that is cutting a zone of quartz psuedomorphs after bladed calcite and pink rhodochrosite. The better grades are in the earlier breccias associated with dark bands or dark patches of very fine-grained disseminated sulphides. This vein zone is hosted in a package of andesite flows and tuffs”.
  • Azucar Minerals Ltd. released drilling results from its El Cobre project in Veracruz. The holes in the Primo target returned 23.75 m  @ 0.22 gpt Au, 0.08% Cu; 8.50 m @ 0.71 gpt Au, 0.24% Cu; 123.50 m @ 0.14 gpt Au, 0.14% Cu. Azucar is currently preparing its facilities  and implementing the health protocols required to enable a safe return to work.

ON MINING

  • Santacruz Silver Mining Ltd. Reported operating and financial results for the second quarter 2020. At Veta Grande in Zacatecas, 37.1 K tonnes were milled to produce 204.6 K Oz AgEq at cash cost $17.68 per Oz AgEq and an AISC of $19.70 per Oz AgEq. At Rosario in San Luis Potosi, 20.8 K tonnes were milled to produce 141.4 K Oz AgEq at cash cost $14.23 per Oz AgEq and an AISC of $15.59 per Oz AgEq.
  • Equinox Gold Corp. reports that “mining activities at its Los Filos mine in Mexico have been suspended since September 3, 2020 as the result of an illegal road blockade by members of the nearby Carrizalillo community. The individuals allege non-compliance with the community social collaboration agreement signed in 2019. The mine remains staffed with a reduced workforce to maintain appropriate safety, security and environmental systems. Equinox Gold is in active discussions with the Carrizalillo community leaders to resolve the issues”.

ON FINANCING

  • Gold79 Mines Ltd. Approved the granting of 6 M stock options to officers, directors and consultants of the company (Taviche, Oaxaca).
  • Southern Silver Exploration Corp. plans to conduct a non-brokered private placement to raise $456 K (Cerro Las Minitas, Durango).
  • Golden Tag Resources Ltd. Granted 9.9 M incentive stock options to management and directors (San Diego, Durango).
  • Barksdale Resources Corp. increased the size of its non-brokered private placement financing for gross proceeds of up to $6.3 M (San Javier, Sonora).
  • GoGold Resources Inc. entered into an agreement on a bought deal basis with a syndicate of underwriters for the acquisition of shares for gross proceeds of C$30 M (Los Ricos, Jalisco).
  • Silver Dollar Resources Inc. has arranged a non-brokered private placement to raise up to $10.5 M (La Joya, Durango).
  • Redstar Gold Corp. announced the granting of 20.73 M stock options to directors, officers and consultants of the company (Cumaro, Oso Negro and La Lola, Sonora).
  • Inomin Mines Inc. announced a non-brokered private placement to raise up to $400 K in gross profits (La Gitana, Oaxaca).
  • Americas Gold and Silver Corp. closed its previously announced and up-sized bought deal financing for aggregate gross proceeds of C$39.4 M (Cosalá, Sinaloa).
  • Alien Metals Ltd. announced that it has conditionally raised £1.25 M (Los Campos and Los Celsos, Zacatecas).

ON RESOURCES AND DEVELOPMENT

  • Silver Bull Resources Inc. updated on its Sierra Mojada project in Coahuila. Sociedad Cooperativa de Exploración Minera Mineros Norteños, S.C.L. (Mineros Norteños), the group which is illegally blocking the Sierra Mojada project, has filed an appeal in the recently reopened Mexican courts to try and overturn a favorable ruling for Silver Bull on their lawsuit against the Company filed in 2014. The company sees the whole lawsuit as frivolous (looking for payment of an NSR on production that has not taken place), and explains Mineros Norteños has lost already three rulings, and Silver Bull expects a final ruling on the case, which cannot be appealed by Mineros Norteños, to be handed down from the courts within the next 6 months. Mineros Norteños has illegally blocked access to the project since September 2019.

ON DEALS AND CORPORATE ISSUES

  • Odyssey Marine Exploration Inc. had a financing transaction that provides the company with $11.3 M, a portion of which will be used to fund operating expenses of the “Exploraciones Oceánicas” phosphate project offshore Baja California Sur. “The investor group was anchored by Odyssey’s existing NAFTA funding partner, Poplar Grove LLC. Poplar Grove is managed by Drumcliffe LLC, a private investment management firm that oversees high-value litigation funding portfolios of over $14 billion in claims”.   
  • Telson Mining Corp. announced the resignation from its board of directors by Remigio Martínez Muller.
  • Tarachi Gold Corp. entered into an arm’s length option agreement with Exploradora Cobre de Bacanoras S. de R.L. de C.V. to acquire 100% interest in the group of mining concessions known as the Juliana, Juliana No.1, Juliana No.2 and Las Morita mining concessions covering 1,140 hectares in Sonora. “Tarachi’s projects now consist of the San Javier, Pretoria, Chivitas, Jabali, Juliana, Texana and Tarachi concessions for a total of 3,708 ha in the Mulatos District. The deal involves the payment of $40 K on the execution date, $30 K on six months, $30 K on 12 months, $30 K on 18 months, $60 K on 24 months, $60 K on 30 months, $150 K on 36 months, $150 K on 42 months, $150 K on 48 months, $700 K on 54 months and $700 K on 60 months, and the issue of 4 M common shares, 400 K of those on the execution date, 1 M shares on 12 months, 1 M shares on 24 months and 1.5 M shares on 26 months. The transfer of the concessions is subject to a 3% NSR from production, with the company having the right to buy at any time 1/3 of the NSR for $1 M.
  • Inomin Mines Inc. announced the execution of the agreement to acquire the La Gitana and Peña Blanca projects in Oaxaca. Inomin is acquiring 100% interest on both properties for 1 M common shares of Inomin, $25 K cash and the grant of 1.5 % NSR on the Peña Blanca property, of which 0.5% can be bought at any time for $1 M.

ON SOCIAL RESPONSIBILITY

  • Peñasquito continues to apply bio-security protocols. Up to date 27,359 fast test have been applied in the facilities and neighboring communities, resulting in six confirmed cases.
  • First Majestic Silver Corp. invested during 2019 US$3.8 M in local community, health youth programs, infrastructure and access to clean water. Over 25,600 medical consultations were provided in local communities. Planted 105,730 native plant species through reforestation initiatives .
  • Minera San Javier (NewGold) donated personal medical equipment to hospitals in San Luis Potosí, and personal medical equipment and sanitization supplies to the Cerro San Pedro municipality health clinics. The company continues to deliver food pantries to persons in need in Planta del Carmen, La Zapatilla, Monte Caldera, Cuesta de Campa, Calderón, Portezuelo and Cerro San Pedro.
  • Alamos Gold donated medical equipment and a mobile unit to the Sahuaripa DIF (Desarrollo Integral de la Familia) in Sonora.
  • SilverCrest’s Las Chispas project has accumulated 600 days without accidents in Sonora.

Content like what you have just read can be seen at https://gambusinoprospector.com/ and at LinkedIn’s Mexico Mineral Exploration Group.

On the image below: The whitish ledge from left to center is a silicified paleo water table in the Mexican Altiplano. Picture by Jorge Cirett.

The Mining and Exploration News in Mexico: Highlights on the Fourth Week of August, 2020.

Hydrothermal breccia

By Miguel A Heredia

During the thirty three week of the year (August 24th to August 30th, 2020), at least 39 press releases were announced by companies working in Mexico, with eleven commenting on Mexican issues, ten disclosing deals and corporate issues, six informing on exploration results, five announcing financial rounds, four reporting on resources and developments of their mine operations, two communicating production and financial results, and one discussing social issues. ON MEXICO ISSUES, AMLO stated in one of its morning press conferences that the Mining Fund will be re-activated and re-organized. The Undersecretary of Mining, The Mexican Mining Chamber (CAMIMEX) demanded that the Mining Fund go back to communities. Francisco Quiroga spoke about the role that the mining industry plays in Mexico. Mexico Mining sector captures USD $873M of Foreign Direct Investment (FDI). Fernando Alanis, President of the Mexican Mining Chamber (CAMIMEX), declared that the investment in mining exploration in Mexico could fall to its lowest level in 14 years. The Undersecretary of Mining, Francisco Quiroga, informed that in Mexico, mining is promoted without environmental disasters or social conflicts. Coeur Mining Inc, a US mining company, claimed MXP $1,000M (over USD $46M) to the government of Mexico.  Jorge Mátar Vargas, a businessman from Morelos, said that the investment of the Esperanza Silver mining project would reactivate the economy of Morelos, given the crisis it faces due to the COVID-19 pandemic. Napoleón Gómez Urrutia, senator and leader of one of the Mexican mining union tweeted that he won a labor lawsuit against Grupo Peñoles. Sergio Almazán is the new President of the Association of Metallurgical, Mining and Geologist Engineers of Mexico A.C (AIMMGM). Francisco Quiroga, Undersecretary of Mining of Mexico, declared that the recovery of the prices of the main minerals produced in Mexico will reinforce mining investment projects in the country. ON EXPLORATION, In Sonora, Tocvan released results from the structural analysis carried out at its El Pilar project, Silver Viper reported results from ten drill holes collared at its El Rubi project, and Tarachi announced the beginning of a 5,000m drilling program at its Tarachi Gold project. In Sinaloa, Vizsla released drill results from its Panuco project. In Durango, Mithril released drilling results from its Copalquin project. ON MINING, Impact reported Q2, 2020 production and financial results from its Zacualpan mining district in the State of Mexico. Santacruz reported the filing of a NI43-101 technical report for its Zimapan mine in Hidalgo.  ON FINANCING, Redstar completed a non-brokered private placement for gross proceeds of CAD $7M (Heliodor properties, Mexico). Kootenay closed its previously announced private placement for gross proceeds of $7M (Columba project, Chihuahua). Capitan Mining closed a private placement for gross proceeds of $3,840,855 (Peñoles project, Durango). VVC announced a non-brokered private placement to raise gross proceeds of up to CAD $3.3M (Kaity Copper project, Chihuahua).  Gold Resource declared its August monthly dividend to shareholders (Arista mine, Oaxaca). ON RESOURCES AND DEVELOPMENT, Mexus provided an update on progress at its Santa Elena mine in Sonora.  Silver Dollar reported phase 3 drilling results not previously reported by SilverCrest from its la Joya project in Durango. GoGold announced the filing of a NI43-101 technical report on the initial mineral resource estimate for their Los Ricos South project in Jalisco. Santacruz reported the filing of a NI43-101 technical report for its Zimapan mine in Hidalgo. Golden Minerals released results from its resource definition drill program at its Rodeo project in Durango.  ON DEALS AND CORPORATE ISSUES, Redstar announced the acquisition of Heliodor Metals Limited and appointed its new CEO. Orla appointed its Senior VP Exploration (Camino Rojo project, Zacatecas). Sonoro announced that its board of directors approved the change of the company´s name to Sonoro Gold Corp (Cerro Caliche project, Sonora). Azure presented results from its annual general meeting of shareholders (Mesa de Plata project, Sonora).   Newmont announced the replacement of the General Manager of the Peñasquito mine, Zacatecas.  Silver Spruce granted stock options to its CFO (El Mezquite project, Sonora). SilverCrest acquired El Picacho property near its Chispas project in Sonora. Orogen (former Evrim) optioned the Sarape Au property in Sonora to Minera Hochschild SA de CV, a subsidiary of Hochschild Mining PLC. Comet executed a share purchase a JV agreement with El Alamo Resource to acquire 100% interest in the Santa Teresa project in Baja California. ON SOCIAL RESPONSIBILITY, Fresnillo plc trains its staff on COVID-19.

ON MEXICO ISSUES

  • Andrés Manuel López Obrador (AMLO), President of Mexico, stated in one of its morning press conferences held in Zacatecas that the Mining Fund will be re-activated and re-organized. He cited that, in the case of the Mining Fund, the resources reached the governments municipalities, but not to the communities.
  • The Mexican Mining Chamber (CAMIMEX), demanded that the Mining Fund go back to communities. Mexico imposed a 7.5% royalty in 2014, plus a special mining tax of 0.5% on gold and silver operations. Most of the proceeds go to social infrastructure projects in mining communities, distributed through the Mining Fund. However, under a reorganization announced by President Andrés Manuel López Obrador, the funds were redirected to a federal budget for schools. Although AMLO has said that the previous system recorded corruption cases and sometimes the cash for projects did not arrive, some industry experts consider that the Mining Fund is a critical tool for mines and projects to win and maintain support of the communities.
  • The Undersecretary of Mining, Francisco Quiroga, spoke about the role that the mining industry plays in Mexico. He said that mining, which is carried out generally in remote locations with difficult access, is a great generator of foreign exchange, as it is mainly an exporter in the case of Mexico, where it contributes more than 4% of GDP. He also emphasized that only small and medium-sized mines require investments of between USD $350-500M, and that medium-scale mines generate 1,000 to 2,000 direct jobs and around 5,000 – 10,000 indirect jobs.
  • Mexico Mining sector, captures USD $873M of Foreign Direct Investment (FDI) in the first half of 2020, a year-on-year decline of 18.6%, according to statistics from the Ministry of the Economy. About 25% of the Mexican territory has been explored in detail, so there is a great opportunity for the development of new projects. Mexico places 12 to 19 minerals year after year within the top 10 production places globally. Development risk in mining is concentrated in the exploration stages and decreases as the operation stage progresses.
  • Fernando Alanis, President of the Mexican Mining Chamber (CAMIMEX), declared that the investment in mining exploration in Mexico could fall to its lowest level in 14 years, although the drop would be even greater given that it does not consider the impact of the COVID-19 pandemic. He said that in recent years exploration activities in the country have suffered a strong fall due to the uncertainty of investors. “Mexico has lost attractiveness as a mining investment destination… that is a fact”. “We have seen a very important reduction of more than 150 exploration companies that are no longer in Mexico and that is worrying.”
  • The Undersecretary of Mining, Francisco Quiroga, informed that in Mexico, the mining sector has to do it environmentally sustainable and socially inclusive, with zero fatalities, no environmental disasters or generating social conflicts. He also informed that active mining concessions represent only four million hectares, that is, a little more than 2% of the national territory and after conducting a review, total concessions decreased from 25 thousand to 21 thousand, which represented a reduction from 21 million to 16 million hectares.
  • Coeur Mining Inc , a US mining company, claimed MXP $1,000M (over USD $46M) to the government of Mexico. Coeur, the fifth silver producer in Mexico, seeks to obtain this compensation from the federal government because the Mexican Tax Administration (SAT) did not refund the VAT. This is the second case that is presented so far in 2020. The first was the notice of the Canadian company First Majestic Silver Corp to the Mexican government, also due to an action by the SAT. On May 13, in its notification, it communicated that the claim amounts to USD $500M, in addition to the interest generated, expenses and costs applicable in the arbitration procedure.
  • Jorge Mátar Vargas, a businessman from Morelos, said that the investment of the Esperanza Silver mining project would reactivate the economy of Morelos, given the crisis it faces due to the COVID-19 pandemic. He also argued that with the Esperanza Silver mining project, state economic activity would be detonated. It would help reduce the deficit of jobs in the state and rescue small entrepreneurs. This project represents a millionaire private investment for the entity, with the capacity to generate hundreds of direct and indirect jobs and is a potential to strengthen the local economy.
  • Napoleón Gómez Urrutia, senator and leader of one of the Mexican mining union tweeted (by the way, a very strange tweet), that he won a labor lawsuit against Grupo Peñoles for unjustified dismissal, for which the company must pay him MXP $1M of lost wages and benefits for 12 years and 8 months that he worked for Minera Mexicana La Ciénega.
  • Sergio Almazán is the new President of the Association of Metallurgical, Mining and Geologist Engineers of Mexico A.C (AIMMGM) for the biennium 2020-2022.
  • Francisco Quiroga, Undersecretary of Mining of Mexico, declared that the recovery of the prices of the main minerals produced in Mexico will reinforce mining investment projects in the country and will allow mining to be part of the competitive advantage for other industries in the country such as manufacturing.

ON EXPLORATION

  • Tocvan Ventures Corp., JV partner of Colibri Resource Corporation, released results from the structural analysis carried out at its El Pilar project in Sonora. “The initial overview of the 3D inversion of magnetic susceptibility data has revealed stand-out significant major structures that are universally associated with “plumbing” systems for gold-silver fluid flow and deposition. Structures appear as shear zones, faults, brecciated rock, rotational gashes within shear zones and other such dilation structures”. The main identified structure is a 1,000m by 250m large NW-SE trending structure bounded by additional N-S trending structures with approximate lengths of 300m. The NW-SE structure as been interpreted as a structural corridor holding a shear zone with rotational features that suggest excellent means of plumbing for metal-mineral-rich fluids to flow through and deposit.
  • Silver Viper Minerals Corp., reported results from ten drill holes collared its La Virginia project in Sonora. Of the ten holes, six were drilled at El Rubi and four at Macho Libre. At El Rubi area, a broad zone of mineralization was encountered in hole LV20-245#1 with 0.76 g/t Au and 38 g/t Ag over a true width (TW) of 55.2m, including 1.79 g/t Au and 92 g/t Ag over a TW of 3m; and 2.49 g/t Au and 152 g/t Ag over a TW of 1m; and 7.98 g/t Au and 353 g/t Ag over a TW of 2.5m, including 20.7 g/t Au and 854 g/t Ag over a TW of 0.5m; hole LV20-245#2 with 0.6 g/t Au and 14 g/t Ag over a TW of 11.2m, including 1.43 g/t Au and 4 g/t Ag over a TW of 1.5m; and hole LV20-245#3 with 0.56 g/t Au and 22 g/t Ag over a TW of 7.5m, including 3.26 g/t Au and 19 g/t Ag over a TW of 0.5m, and an interval of 0.93 g/t Au and 124 g/t Ag over a TW of 0.2m. At Macho Libre, the most significant drill intercept was encountered at hole LV20-240M with 0.5 g(t Au and 7 g(t Ag over a TW of 0.6m.
  • Tarachi Gold Corp., announced the beginning of a 5,000m drilling program at its Tarachi Gold project in Sonora. The company plans to start the drill program at La Dura mine where channel sampling returned 6.34 g/t Au over 62.55m.
  • Vizsla Resources Corp., released the first step-out drill results along the Napoleon Vein corridor at its Panuco project in Sinaloa. Hole NP-20-18, located 1km north from the original discovery at Napoleon encountered 3.76 g/t Au, 689 g/t Ag, 0.2% Pb, 0.6% Zn (1,019 g/t AgEq) over a width of 2.5m, including 7.96 g/t Au, 1,515 g/t Ag, 0.5% Pb, and 1.2% Zn (2,206 g/t AgEq) over a width of 1m. Assays are pending for holes NP-20-19 and NP-20-21 separated each other for a distance of 90m.
  • Mithril Resources Ltd, announced results from the two first drill holes collared at its Copalquin project in Durango. Hole CDH-001 encountered 34.72 g/t Au and 3,129 g/t Ag over 3m, including 88.4 g/t Au and 6,750 g/t Ag over 1m; and hole CDH-002 with 5.64 g/t Au and 325 g/t Ag over 4.55m, including 9.82 g/t Au and 574 g/t Ag over 1.5m, plus 9.27 g/t Au and 825 g/t Ag over 0.5m. The two first holes are part of a 5,000m (35 holes) drilling program and intercepted the Soledad vein, confirming historically bonanza grades.

ON MINING

  • Impact Silver Corp., reported Q2, 2020 production and financial results from its Zacualpan mining district, State of Mexico. Despite losing nearly half the quarter (April to June) due to mandatory shutdown, Impact milled 25,602 tonnes with an average mill feed grade of Ag of 187 g/t to produced 129,570 Oz Ag. Q2, 2020 production at the Guadalupe mill came from the Guadalupe mine (37%), the San Ramon mine (23%), the Cuchara mine (23%), and the Veta Negra mine (17%). Impact reported revenues for $2.84M and an adjusted EBIDTA of $0.48M. At June 30, 2020, cash position was at $6.3M with working capital at $5.3M.
  • Santacruz Silver Mining Ltd., reported the filing of a NI43-101 technical report for its Zimapan mine in Hidalgo. Zimapan consists of 34 mining concessions totalling 5,138.76 ha and has had an extensive mining history dating back to the 1660´s. There are fourteen known mineral zones that are hosted in Lower Cretaceous limestone and calcareous shales. The zones contain targets that range from 3-10 m in width that have been traced 40-1000 m along strike and 40-590 m down dip. The property has been in production since January 1, 2010 and as of December 31, 2019 Carrizal Mining mined approximately 5.88M tonnes of mineralized material, including 3.43M tonnes at head grades ranging from 73-101 g/t Ag, 0.4-0.5% Pb, 1.8-2.8% Zn, and 0.49-0.67 % Cu from the Monte mine, and  45 MT at head grades ranging from 82-124 g/t Ag, 0.6-1.2 % Pb, 2.-4.4 % Zn, and 0.28-0.48 % Cu from the Carrizal mine.

ON FINANCING

  • Redstar Gold Corp., completed a non-brokered private placement for gross proceeds of CAD $7M. The company plans to use the net proceeds for exploration drilling and resource delineation, updating the resource and general working capital (Heliodor properties, Mexico).
  • Kootenay Silver Inc., closed its previously announced private placement for gross proceeds of $7M. The Company intends to use the net proceeds from the offering for exploration and development activities, working capital requirements and other general corporate purposes (Columba project, Chihuahua).
  • Capitan Mining Inc., closed its private placement for gross proceeds of $3,840,885.00 instead of the 10,000,000 shares ($2,000,000) originally contemplated. Net proceeds will be used to fund a focused drill program at the Peñoles project in Durango, additional project acquisitions and general corporate purposes.
  • VVC Exploration Corporation, announced a non-brokered private placement to raise gross proceeds of up to CAD $3.3M. Gross proceeds will be used for development of its Kaity project, Chihuahua, including costs associated with various permits, metallurgical bench testing, and investigation, evaluation and implementation of the Gloria pilot mining; option payments in Mexico; current accounts payable; general administrative expenses; and working capital.
  • Gold Resource Corporation, declared its August monthly dividend to shareholders. It will consists of one-third of a cent per common share for August 2020 payable on September 23, 2020 to shareholders of record as of September 11, 2020. (Arista mine, Oaxaca).

ON RESOURCES AND DEVELOPMENT

  • Mexus Gold US, provided an update on progress at its Santa Elena mine in Sonora. The company improved the crushing circuit to maximize efficiencies, hired two new equipment operators and a lab technician, and acquired a 330 excavator a 40 ton haul truck and repaired existing equipment. The company expects to show an increase in production during the Q2 of its fiscal year (July through September).
  • Silver Dollar Resources Inc., reported phase 3 drilling results not previously reported by SilverCrest from its la Joya project in Durango. This in-fill drilling program consisted of 17 drill holes targeted to advance towards an updated resource model in H1, 2015. Significant drill intercepts were encountered in hole LJDD14-109 with 0.73 g/t Au, 33 g/t Ag and 0.36% Cu (119 g/t AgEq) over a width of 21.92m, including 3.45 g/t Au, 12 g/t Ag and 0.1% Cu (231 g/t AgEq) over a width of 4.4m; LJDD14-114 with 0.09 g/t Au, 193 g/t Ag and 2.58% Cu (501 g/t AgEq) over a width of 1.2m and 0.38 g/t Au, 43 g/t Ag, and 0.27% Cu (98 g/t AgEq) over a width of 66.4m. including 1.26 g/t Au, 219 g/t Ag, and 1.48% Cu (468 g/t AgEq) over a width of 3.15m; hole LJDD20-115 with 0.06 g/t Au, 234 g/t Ag, and 1.24% Cu (382 g/t AgEq) over a width of 6.1m, including 0.17 g/t Au, 734 g/t Ag, and 3.75% Cu (1,182 g/t AgEq) over a width of 1m; hole LJDD20-116 with 0.06 g/t Au, 76 g/t Ag, and 0.55% Cu (144 g/t AgEq) over a width of 25.1m, including 0.04 g/t Au, 185 g/t Ag, and 1.37% Cu (348 g/t AgEq) over a width of 9.1m, and 0.11 g/t Au, 602 g/t Ag, and 4.64% Cu (1,151 g/t AgEq) over a width of 1.8m, and 0.29 g/t Au, 106 g/t Ag, and 1.2% Cu (234 g/t AgEq) over a width of 23.1m, including 0.09 g/t Au, 723 g/t Ag, and 8.97% Cu (1,778 g/t AgEq) over a width of 2m.
  • GoGold Resources Inc., announced the filing of a NI43-101 technical report on the initial mineral resource estimate for their Los Ricos South project in Jalisco. Measured and indicated mineral resource are 10M tonnes of 199 g/t AgEq to contain 63.7M Oz AgEq, and Inferred resources are 3.3M tonnes of 190 g/t AgEq to contain 19.9M Oz AgEq. Los Ricos South mineral resource is potentially amenable to both open pit and bulk underground mining methods. The company also expanded the surface rights agreement. On August 9,2020 the Ejido Cinco Minas, which owns the surface rights over the majority of the Los Ricos South concessions including all of those within the mineral resource estimate, signed an agreement with the company for a period of 12 years with an additional 12 year renewal period.
  • Santacruz Silver Mining Ltd., reported the filing of a NI43-101 technical report for its Zimapan mine in Hidalgo. Zimapan consists of 34 mining concessions totalling 5,138.76 ha and has had an extensive mining history dating back to the 1660´s. There are fourteen known mineral zones that are hosted in Lower Cretaceous limestone and calcareous shales. The zones contain targets that range from 3-10 m in width that have been traced 40-1000 m along strike and 40-590 m down dip. The property has been in production since January 1, 2010 and as of December 31, 2019 Carrizal Mining mined approximately 5.88M tonnes of mineralized material, including 3.43M tonnes at head grades ranging from 73-101 g/t Ag, 0.4-0.5% Pb, 1.8-2.8% Zn, and 0.49-0.67 % Cu from the Monte mine, and  45 MT at head grades ranging from 82-124 g/t Ag, 0.6-1.2 % Pb, 2.-4.4 % Zn, and 0.28-0.48 % Cu from the Carrizal mine.
  • Golden Minerals Company, released results from its resource definition drill program at its Rodeo project in Durango. Golden reported results from 11 drill holes with significant intercepts showing wide zones of high-grade near-surface Au mineralization. Highlights include hole RDO_20_012 with 6.66 g/t Au and 14 g/t Ag over 24.5m, including 9.3 g/t Au and 15 g/t Ag over 8.6m; hole RDO_20_014 with 5.87 g/t Au and 27 g/t Ag over 23.5m, including 8.83 g/t Au and 38 g/t Ag over 12.9m; and hole RDO_20_017 with 2.85 g/t Au and 11 g/t Ag over 21.4m, including 5.1 g/t Au and 15 g/t Ag over 6m.

ON DEALS AND CORPORATE ISSUES

  • Redstar Gold Corp., announced the acquisition of Heliodor Metals Limited., and appointed its new CEO and board of directors. To acquire Heliodor, Redstar issued an aggregate of 86,621,003 shares to the former Heliodor shareholders in exchange for all the issued and outstanding Heliodor securities.
  • Orla Mining Ltd., announced the appointment of its Senior VP Exploration (Camino Rojo project, Zacatecas).
  • Sonoro Metals Corp., announced that its board of directors approved the change of the company´s name to Sonoro Gold Corp (Cerro Caliche project, Sonora).
  • Azure Minerals Limited, presented results from its annual general meeting of shareholders (Mesa de Plata project, Sonora).
  • Newmont Corporation, announced the replacement of the General Manager of the Peñasquito mine, Zacatecas. The former General Manager was ceased for violations of Newmont´s Code of Conduct.
  • Silver Spruce Resources Inc., granted 300K stock options to its CFO (El Mezquite project, Sonora).
  • SilverCrest Metals Inc., announced the acquisition of El Picacho property, near its Las Chispas project in Sonora, from American Metal Mining. The purchase price paid by SilverCrest was for the amount of USD $1.6M and is for a 100% ownership in 11 mining concessions totalling approximately 7,060 hectares. The company also paid all the mining taxes to bring these concessions to good standing. The Property was a historic gold and silver producer, with the first noted production in late 1800s with grades greater than 15 g/t Au. “There are seven (7) low-sulphidation epithermal main veins on the concessions, with numerous near parallel hanging and footwall veins. The main veins have a known cumulative strike length of over 10km with widths ranging from 0.5 to 15m”.
  • Orogen Royalties Inc., (former Evrim) optioned the Sarape Au property in Sonora to Minera Hochschild SA de CV, a subsidiary of Hochschild Mining PLCHochschild can earn a 100% interest in the Sarape project by making cash payments of USD $5.35M and completing expenditures of USD$5M over a five-year period. Upon exercise of the option, Hochschild will grant to Orogen a 3% NSR of which 1% can be purchased for USD $2M.
  • Comet Resources Ltd., executed a share purchase and JV agreement with El Alamo Resources Limited to acquire 100% interest in the Santa Teresa project in Baja California. The acquisition will be completed on a staged basis, with Comet acquiring an initial 50% interest by making a refundable $100K cash payment. The remaining 50% interest will be acquired upon a decision to mine being made in respect of the Project within a two year period. Comet is now 50% owner of the Santa Teresa property and has the option to increase its ownership to 100% within two years. Historical production in the surrounding El Alamo district has been estimated in between 100K-200K Oz Au. The Santa Teresa project is comprised of two mineral claims totalling 202 hectares. Previous operator drilled 32 holes with significant results such as 32.4 g/t Au over 2m ; 958.4 g/t Au over 1m; 38 g/t Au over 2.5m; 39 g/t Au over 3.9m; 19.9 g/t Au over 3m; 125.9 g/t Au over 1m; 14.4 g/t Au over 3.1m; and 16 g/t Au over 3.1m. The company plans are to re-assay historic drill core to prepare a JORC compliant mineral resource estimate and then to test the upside potential at under explored areas.

ON SOCIAL RESPONSIBILITY

  • Fresnillo plc, seeks to promote knowledge about COVID-19 among its employees and train them to carry out all the actions and measures necessary to prevent the spread of the virus in their homes, community and in the company.

Content like what you have just read can be seen at https://gambusinoprospector.com/ and at LinkedIn’s Mexico Mineral Exploration Group.

On the picture above, a hydrothermal breccia related to an epithermal system in a prospect in Chihuahua, Mexico.  Photo by Miguel A Heredia.

The Mining and Exploration News in Mexico: Highlights on the First Week of August, 2020

197 - copiaBy Jorge Cirett

During the 32nd week of the year (August 3rd to August 9th, 2020), at least 29 press releases were announced by companies working in Mexico. To note, six of those were either opening or closing rounds of financing, and although it is difficult to assign the total amount to any given week, the announcements on this period add up to $25.56 M and C$31.9 M (dominated by Chesapeake’s $20 M and Excellon’s C$17.9 M). ON MEXICO ISSUES, First Majestic has been sued by the Tax revenue agency (SAT). The mining and metallurgical production increased 9.6% on the previous month. Alberto López Santoyo ended its functions heading the Dirección General de Minas del Estado de Sonora. ON EXPLORATION, in Sonora, Colibri Resource updated on exploration at the Evelyn property in Sonora; Canuc Resources acquired a new claim at its San Javier project. In Sinaloa, Viszla Resources released drilling results from three more holes from its Panuco project. ON MINING, Endeavour Silver, Premier Gold, Torex Gold, Great Panther and Golden Minerals presented its financial or production reports for the Q2 2020. Mexus Gold is adding equipment to its Santa Elena mine in Sonora. ON FINANCING, six companies made announcements regarding the opening or closing of financing rounds, or financing related news: Canasil Resources ($1.56 M), Excellon Resources (C$17.9 M), Chesapeake Gold ($20 M), Impact Silver (C$7 M), Redstar Gold (C$7 M), Barksdale Resources ($4 M). ON RESOURCES AND DEVELOPMENT, Pan American Silver released a new resource estimate for its La Colorada skarn deposit in Zacatecas. Sailfish Royalty updated on the Gavilanes property in Durango. GoGold released more drilling results from its Los Ricos North project in Jalisco. ON DEALS AND CORPORATE ISSUES, Minera Alamos finalized the acquisition of the Cerro de Oro project in Zacatecas. Zanzibar Gold acquired the Sonora Gold property in Sonora. Inomin Mines executed the agreement to acquire the La Gitana project in Oaxaca. Barksdale Resources signed a LOI on the San Javier copper project in Sonora. Riverside Resources released the date of the incoming spin-out of El Capitan Mining. ON SOCIAL RESPONSIBILITY. Minera Saucito was certified on safety, work and health. Newmont Peñasquito, Fresnillo PLC and Torex Gold informed on health and community help activities in Zacatecas, Guerrero and Sonora.

ON MEXICO ISSUES

  • Primero Mining (First Majestic) was sued by the SAT (Tax Agency). The company is accused of failing to fully pay for taxes by selling metals even below market prices to related parties. Another charge relates to the 2010 acquisition of the San Dimas mine in Durango, allegedly using a lower price tag than its real value. Last May the company warned it was to file a reclamation against the Mexican government on a multinational panel.
  • The Mining and Metallurgic production in Mexico fell 16.9% in May, in an annualized basis, even if presenting a 9.6% increase on the April production.
  • Gold has had an hectic week, reaching an all-time new high of $2,069 per Oz Au, while silver peaked at $28.40. The price of gold has appreciated 35% in the year, while silver is at a seven-year high.
  • Francisco Quiroga, Mining subsecretary, informed production levels in Mexico are now back to the levels before the Coronavirus pandemic emergency that shut most operations.
  • Alberto López Santoyo finalized its function as head of the Dirección General de Minas del Estado de Sonora. He had been on the post since 2015.

ON EXPLORATION

  • Viszla Resources Corp. released drilling results from the Napoleon vein corridor at the Panuco project in Sinaloa. Highlighted core-length results comprise 27.0 m @ 47 gpt Ag, 0.65 gpt Au, 0.2% Pb, 0.8% Zn; 3.5 m @ 208 gpt Ag, 1.31 gpt Au, 0.3% Pb, 2.1% Zn; 8.5 m @ 48 gpt Ag, 0.32 gpt Au, 0.4% Pb, 1.1% Zn and 4.5 m @ 495 gpt Ag, 2.52 gpt Au, 0.5% Pb, 1.1% Zn in one hole. 22.6 m @ 141 gpt Ag, 1.05 gpt Au, 0.5% Pb, 0.8% Zn (including 1.0 m @ 619 gpt Ag, 5.54 gpt Au, 2.5% Pb, 3% Zn and 5.4 m @ 267 gpt Ag, 1.63 gpt Au, 0.4% Pb, 1% Zn) in a second hole. 3.4 m @ 41 gpt Ag, 1.39 gpt Au, 0.1% Pb, 0.4% Zn.
  • Canuc Resources Corp. acquired a 151 ha mining concession that enveloped the NE of its land holdings at San Javier, Sonora. “The Company believes that there is a distinct possibility that silver-gold bearing breccia and stockwork zones can be confirmed along this trend with current exploration initiatives“.
  • Colibri Resource Corp. updated on exploration at its Evelyn project in Sonora. Recent mapping and sampling of previously unmapped areas returned up to 27.5 gpt Au. Trenching has been recommended to establish geometry and potential length of mineralization, as well as a high resolution aeromagnetic survey.

ON MINING

  • Mexus Gold US. is adding equipment to its Santa Elena mine in Sonora (Not to mistake for First Majestic’s Santa Elena mine, also in Sonora). Assays on material from Pit #1 averaged 2.1 gpt Au, with results of up to 16 gpt Au. Mexus intends to increase the size of the heap leach pad to contain up to 500 K tonnes.
  • Endeavour Silver Corp. released its financial reports for the second quarter 2020. During the period 114.1 K tonnes were processed, producing 596.5 K Oz Ag, 5,817 Oz Au (1.06 M Oz AgEq) at cash cost $2.78, AISC $14.91. At Guanaceví in Durango, higher grade El Curso, Milache and SCS orebodies had a significant positive impact on the operating performance. At Bolañitos, Guanajuato, and El Compas, Zacatecas, re-start was slower due to smaller stockpiles and less stope preparation.
  • Premier Gold Mines Ltd. Presented 2020 Q2 results. No production was reported from its Mercedes mine in Sonora, which was closed during the pandemic emergency. The company revised its mining plan, reducing production rates from 2,000 tpd to 1,200 tpd, consolidating from five mining portals to one and operating the processing plant on a campaign basis.
  • Torex Gold Resources Inc. released financial results for Q2 2020. Production at El Limón Guajes mine in Guerrero was suspended in April and partially resumed in May with the processing of low grade stockpiles. Gold production was 59,508 Oz, including 38,892 Oz in June, at cash cost $740 and AISC of $1,015 per Oz Au.
  • Great Panther Mining Ltd. Reported financial results for the second quarter of 2020. From its Topia and Guanajuato mine Complex, 23.6 K tonnes were mined and 24.5 K tonnes milled @ 325 gpt AgEq.
  • Golden Minerals Co. announced its financial results for the last quarter. The company had a revenue of $1.2 M and a net operating margin of $0.8 M on the lease of its processing plant, and received $0.9 M from an earn-in agreement with Barrick and $2.8 M form an equity offering (Rodeo, Durango).

ON FINANCING

  • Canasil Resources Inc. closed its non-brokered private placement for total gross proceeds of $1.56 M. The placement was originally for $1 M (Nora, Durango).
  • Excellon Resources Inc. closed the previously announced private placement, raising total gross proceeds of C$17.9 M. The funds will be used to repay a US$6 M bridge loan and exploration of its projects (Platosa, Durango).
  • Chesapeake Gold Corp. arranged a non-brokered private placement for gross proceeds of $20 M (Metates, Durango).
  • Impact Silver Corp. increased the previously announced private placement, aiming to gather up to C$7 M in gross proceeds (Zacualpan, Estado de México).
  • Redstar Gold Corp. announced the commencement of a non-brokered private placement to raise aggregate gross proceeds of up to C$7 M (Cumaro, La Lola and Oso Negro in Sonora).
  • Barksdale Resources Corp. intends to complete a non-brokered private placement financing for $4 M in gross proceeds (San Javier, Sonora).

ON RESOURCES AND DEVELOPMENT

  • Pan American Silver Corp. released a new mineral resource estimate for the La Colorada skarn deposit in Zacatecas. The inferred resource stands now as 100.4 M tonnes @ 44 gpt Ag, 0.20% Cu, 1.77% Pb, 4.29% Zn, containing 141 M Oz Ag, 199 K tonnes Cu, 1.8 M tonnes Pb, 4.3 M tonnes Zn. Drilling core-length highlights include 223.5 m @ 29 gpt Ag, 0.10% Cu, 1.00% Pb, 1.79% Zn; 101.3 m @ 44 gpt Ag, 0.21% Cu, 2.89% Pb, 3.92% Zn; 52.0 m @ 67 gpt Ag, 0.34% Cu, 1.37% Pb, 3.53% Zn; 83.6 m @ 23 gpt Ag, 0.27% Cu, 0.08% Pb, 4.21% Zn; 23.1 m @ 139 gpt Ag, 0.12% Cu, 3.99% Pb, 6.46% Zn; 28.2 m @ 57 gpt Ag, 0.06% Cu, 3.79% Pb, 3.18% Zn; 20.2 m @ 156 gpt Ag, 0.88% Cu, 5.99% Pb, 5.29% Zn.
  • Sailfish Royalty Corp. updated on the Gavilanes property in Durango. The Gavilanes project covers 13,594 ha in the San Dimas district in Durango, with an historical indicated resource of 953 K tonnes @ 164.6 gpt Ag, 0.09 gpt Au, 0.06% Cu, 0.42% Pb, 0.41% Zn and inferred resources of 5.4 M tonnes @ 124.6 gpt Ag, 0.12 gpt Au, nil Cu, 0.4% Pb, 0.34% Zn, holding 6.14 M Oz AgEq and 28.3 M Oz AgEq respectively.
  • GoGold Resources Inc. released results from the three first drill holes at La Trini on the Los Ricos North project in Jalisco. Highlighted core-length intercepts comprise: 43.1 m @ 0.70 gpt Au, 91 gpt Ag (including 17.8 m @ 0.89 gpt Au, 132 gpt Ag, which includes 4.0 m @ 1.92 gpt Au, 225 gpt Ag); 42.8 m @ 0.40 gpt Au, 52 gpt Ag (including 10.5 m @ 1.23 gpt Au, 56 gpt Ag); 29.8 m @ 2.41 gpt Au, 532 gpt Ag (including (4.5 m @ 12.83 gpt Au, 3,289 gpt Ag).

ON DEALS AND CORPORATE ISSUES

  • Minera Alamos Inc. finalized definitive agreements to acquire 100% interest in the Cerro de Oro gold project in Zacatecas. This deal increases the company’s land holdings in the district to 6,500 ha. Historical exploration includes 8,200 m of drilling in 76 holes and 6,000 m of trenching, with gold mineralization defined on a 500 m by 1,000 m stretch, oxidized to 70-80 m of depth, and open in multiple directions. Highlighted core–length drilling intercepts include 92 m @ 0.45 gpt Au, 70 m @ 0.75 gpt Au, 45 m @ 0.54 gpt Au, 70 m @ 0.40 gpt Au, 38 m @ 0.66 gpt Au, 30 m @ 1.29 gpt Au, 81.7 m @ 0.44 gpt Au, 38 m @ 0.44 gpt Au. Trenching results include: 75 m @ 0.67 gpt Au, 100 m @ 0.47 gpt Au, 200 m @ 0.50 gpt Au, 131 m @ 0.61 gpt Au. The deal involves the payment of $400 K and 2 M shares on closing, $300 K and 500 K shares on the first year, $400 K and 500 K shares on the second year, $800 K and 500 K shares on the third year and $1 M and 500 K shares on the fourth year. A $1 M bonus will be paid to the vendor upon the production of 50 K Oz Au.
  • Zanzibar Gold Inc. signed an option with Minerales de Tarachi for a 100% interest in the 6,000 ha Sonora Gold concessions. “Zanzibar Gold Inc. is looking forward to commencing detailed mapping and sampling exploration program on this large and very prospective property with a view to be drilling within four to five months”. The option involves payments of $50 K and 1.5 M shares on signing, $50 K and 1.5 M shares in six months, $50 K and 2 M shares in 12 months, $50 K at 18 months, $50 K and 2 M shares at 24 months, $50 K at 30 months, $150 K and 3 M shares at 36 months, $150 K at 42 months, $200 K at 48 months, $500 K at 54 months and $2.7 M at 60 months, for a total of $4 M in cash and 10 M shares. The optionor retains a 3.0% NSR of which 1% can be bought by Zanzibar for US$1 M.
  • Inomin Mines Inc. executed the agreement to acquire La Gitana and Peña Blanca projects in Oaxaca. The deal involves the payment of $25 K and the issuance of 1 M shares of Inomin, with a 1.5% NSR to Gunpoint on Peña Blanca and an existing 3.0% NSR to a third-party. Both properties are low-sulfidation epithermal systems with veins and dissemination within broad stockworks and breccias. La Gitana has a drilled zone of 500 m by 300 m with highlighted core length intercepts: 133.5 m @ 1.78 gpt Au, 101 gpt Ag; 33.0 m @ 0.64 gpt Au, 39 gpt Ag; 124.5 m @ 0.75 gpt Au, 24 gpt Ag; 145.5 m @ 0.40 gpt Au, 33 gpt Ag; 93.0 m @ 0.99 gpt Au, 19 gpt Ag; 63 m @ 1.27 gpt Au, 70 gpt Ag; 93.0 m @ 0.56 gpt Au, 20 gpt Ag; 60.0 m @ 1.20 gpt Au, 31 gpt Ag; 72.0 m @ 0.75 gpt Au, 35 gpt Ag; 28.5 m @ 1.55 gpt Au, 84 gpt Ag. At Peña Blanca, channel sampling of outcrops and trenches returned 23.5 m @ 2.26 gpt Au, 178 gpt Ag; 46 m @ 0.61 gpt Au, 7 gpt Ag; 23 m @ 0.61 gpt Au, 11 gpt Ag; 25 m @ 0.47 gpt Au, 8 gpt Ag; 3.0 m @ 5.9 gpt Au, 16 gpt Ag.
  • Barksdale Resources Corp. signed a binding letter of intent (LOI) securing an option to acquire the San Javier copper gold project in Sonora. The 1,184 ha project has 30,000 m of historic drilling by several companies with mineralization previously characterized as of IOCG type. Bakersdale intends to follow up also on structurally controlled mineralization, especially in zones of high gold grades. Some highlighted historic drill results comprise: 191.6 m @ 0.43% Cu; 54 m @ 0.75% Cu; 69 m @ 0.57% Cu; 33 m @ 1.47% Cu; 87 m @ 0.97% Cu, 0.16 gpt Au; 15 m @ 4.34% Cu, 0.94 gpt Au; 189 m @ 0.38% Cu, 0.49 gpt Au (including 63 m @ 0.35% Cu, 1.26 gpt Au which includes 9.9 m @ 0.17% Cu, 5.23 gpt Au); 42.0 m @ 0.53 % Cu, 1.09 gpt Au. The deal involves the payment of C$50 K and 4 M shares on completion, C$100 K and 2 M shares on the first year, C$150 K and 3 M shares on the third year and $200 K and 4 M shares on the sixth year. There is also an NSR of 1% when copper is below $3.50 per pound, or 2% when the price is over $3.51 per pound.
  • Riverside Resources Inc. announced the planned spin-out of the Peñoles project (Durango) to its shareholders by way of a plan of arrangement with Capitan Mining Inc. is to occur on August 14, 2020.

ON SOCIAL RESPONSIBILITY

  • Minera Saucito obtained the ISO45001 international certification on “Sistemas de gestión de la seguridad y salud ocupacional en el trabajo” by the BSI Group.
  • Newmont Peñasquito has realized 22,952 SARSCov-2 (Covid-19) fast tests since the recommencement of operations with 50% of the personnel.
  • Fresnillo PLC has been sanitizing more than 35 public spaces for more than 100 days now in Caborca, Sonora.
  • Fresnillo PLC donated two advanced mechanical respirators in Zacatecas, one to the Hospital General de Fresnillo and one to the Hospital General de Zona No.2 del Instituto Mexicano del Seguro Social (IMSS).
  • Minera Media Luna (Torex Gold) with the community of Nuevo Balsas realized several activities to improve public spaces. More than 300 persons participated in the activities that included painting streets and sidewalks, moving 50 tonnes of garbage, repairing 80 public lights and planting 200 trees.

Content like what you have just read can be seen at https://gambusinoprospector.com/ and at LinkedIn’s Mexico Mineral Exploration Group.

On the image below: Hematitized and silicified breccia in the paleo water table of a low sulfidation epithermal system in Queretaro. Picture by Jorge Cirett.

197 - copia

The Mining and Exploration News in Mexico: Highlights on the Fifth Week of July, 2020.

 

Quartz veins hosted in volcanic rocks

By Miguel A Heredia

During the thirty one week of the year (July 27th to August 2nd, 2020), at least 50 press releases were announced by companies working in Mexico, with thirteen announcing financial rounds, eight communicating production and financial results, seven disclosing deals and corporate issues, six commenting on Mexican issues, six discussing social issues, five informing on exploration results, and five reporting on resources and developments. ON MEXICO ISSUES, Xavier Garcia de Quevedo, VP of Grupo Mexico, stated that the investment in the Mexican mining industry has decreased 36% between 2018 and 2019 and 68% in the last seven years. The research firm Americas Market Intelligence (AMI) stated that sustainability initiatives will boost financing for the mining sector. The dispute between the Tax Administration Service (SAT) and the Canadian mining company First Majestic is rapidly escalating to other levels. According to the Institute of Statistics and Geography (INEGI), Mexico is the 9th world gold producer. Gold price exceeded USD $ 1,981.27 per Oz last Tuesday 28, 2020, reaching an all-time high. ON EXPLORATION, In Sonora, Canuc recommenced exploration at its San Javier project, and Silver Spruce announced that its Phase 1 ground exploration program on the El Mezquite Au Project will be activated during the first week of August 2020.  In Sinaloa, Vizsla added a fourth drill rig at its Panuco project. In Durango, Mithril commenced a 5,000m drilling program at its Copalquin project.  ON MINING, Capstone, Coeur, Consolidated Zinc, Fresnillo, Newmont, and Starcore reported production and financial results from their Mexican operations. Sierra Metals announced restart of production at its Cusi mine in Chihuahua.  ON FINANCING, Advance Gold closed its previously announced private placement for gross proceeds of $720K (Tabasquena project, in Zacatecas).  Aztec Minerals closed the final tranche of its private placement for gross proceeds of CAD $955K (Cervantes project in Sonora). Golden Tag announced a non-brokered private placement financing led by Eric Sprott for aggregate proceeds of $5.6M (San Diego property in Durango). Impact Silver pronounced a brokered private placement financing for CAD $6M (Zacualpan Mining District in Mexico State). Kootenay announced a private placement financing for $5M (Columba project in Chihuahua). Silver Tiger closed a non-brokered private placement for gross proceeds of $11M (El Tigre project in Sonora). Southern Silver reported a brokered offering of subscription receipts for aggregate gross proceeds of CAD $10M, and announced an additional CAD $4M equity raise (Cerro Las Minitas project in Durango). Stroud completed a non-brokered private placement financing for gross proceeds of $3M (Santo Domingo property in Jalisco).  Sonoro Metals announced that it increased its non-brokered private placement financing for up to $5M with the potential to add up to $3M of additional proceeds under the overallotment option. Gold Resource declared July monthly dividend to their shareholders (Arista mine in Oaxaca). Mag Silver signed an at the market offering sales agreement of common shares for gross proceed of up to USD $50M (Juanicipio project in Zacatecas). Candente applied to TSX for approval to extend the exercise period of 5M outstanding share purchase warrants issued pursuant to the private placement completed on August 12, 2016. (El Oro property in Mexico State). Monarca Minerals announced that it is proposing to settle an aggregate of approximately $380.6K owing to certain officers and directors and services providers through the issuance of an aggregate of approximately 7,612,000 common shares at an issue price of CAD $0.05 (Tejamen project in Durango).   ON RESOURCES AND DEVELOPMENT, Alamos Gold reported results of a positive internal economic study and announced construction decision on its fully permitted La Yaqui Grande project located in the Mulatos mining district. GoGold announced initial mineral resource estimate at its Los Ricos project in Jalisco, and updated the mineral reserve at the Parral Tailings operation, and the mineral resource estimate at its Esmeralda Tailings project located near Parral, Chihuahua. Consolidated Zinc advised that the environmental authority of Mexico has granted their approval for refurbishment of its Plomosas plant and construction and operation of the tailings storage facility. Ridgestone entered into a toll milling agreement to process bulk samples from historic dumps of the Alaska vein at its Rebeico project in Sonora.  ON DEALS AND CORPORATE ISSUES, Brigadier announced the appointment of its new special adviser (Picachos project in Sinaloa). Santacruz signed an option agreement with Grupo Peñoles to acquire the Zimapan property and related assets located in Zimapan, Hidalgo for a total consideration of USD $20M. Minera Alamos hired new VP project development and appointed new COO (Santana project in Sonora). Consolidated Zinc presented results from its annual general meeting of shareholders, and advised that a new constitution was approved and adopted by shareholders (Plomosas mine in Chihuahua). Candente launched the “CEO Verified” Discussion Forum on AGORACOM (El Oro property in Mexico State). Telson provided an update on filing annual 2019 audited and Q1, 2020 financial statements (Tahuehueto project in Durango).  ON SOCIAL RESPONSIBILITY, The Municipal Water and Sanitation Board of Chihuahua (JMAS) is extracting water from the Esmeralda and Arbolito mines to feed a dam in Parral Chihuahua. Minera Peñasquito supplies water to 5 thousand people of the communities of Cedros, Mesas, Charcos, Nuevo Peñasco and Palmas. Minera Saucito, a subsidiary of Fresnillo plc, received international certification for its commitment to the health and safety of its collaborators. Minera Penmont (Fresnillo plc), implemented a health model for the safety of its workers in the face of the COVID-19 pandemic (La Herradura mine in Sonora). Compañía Minera Cuzcatlán (Fortuna Silver) dissociated itself from the alleged environmental incident and reiterated its commitment to the communities in which it operates (San Jose mine, Oaxaca).

ON MEXICO ISSUES

  • Xavier Garcia de Quevedo, VP of Grupo Mexico, stated that the investment in the Mexican mining industry has decreased 36% between 2018 and 2019 and 68% in the last seven years, leading the country to fall in the international ranking of investment destination from position 5 to 29.
  • The research firm Americas Market Intelligence (AMI), concluded that sustainability initiatives will boost financing for the mining sector. This would represent an opportunity to transform the industry and create new business models in a more economic capital cycle.
  • The dispute between the Tax Administration Service (SAT) and the Canadian mining company First Majestic is rapidly escalating to other levels. The Attorney General’s Office, Carlos Romero Aranda, warned the taxpayer that it failed to accumulate the real income derived from the sale of silver to its related party Silver Trading Barbados Limited. First Majestic draws disputes with the SAT since the last administration because it is questioned what it paid as a result of the purchase of Primero Mining, owner of the San Dimas silver mine, in Durango. The mining company filed a lawsuit against Mexico in May under the Free Trade Agreement, prompting Andrés Manuel López Obrador to ask the Canadian government to enter into conciliation. But what is unheard of is that while the President asks his counterpart Justin Trudeau to sensitize First Majestic to pay about $ 180 million, there is already a tax lawsuit.
  • According to the National Institute of Statistics and Geography (INEGI), Mexico is the 9th world gold producer. In 2019 the country produced 2.4M Oz Au with a value of approximately USD $2.87B.
  • Gold price exceeded USD $ 1,981.27 per Oz last Tuesday 28, 2020, reaching an all-time high. Investors bet on the precious metal, considered as a safe value amid uncertainty by the tensions between the United States and China and the recovery of the COVID-19 pandemic. This move is common among investors to protect themselves from risk when markets fall.

ON EXPLORATION

  • Canuc Resources Corporation, recommenced exploration at its San Javier project in Sonora. The company announced that it has initiated a geological mapping and systematic sampling program along the 3Km structural corridor of the San Javier Ag-Au project. Focus of the program is to locate and evaluate large scale breccia zones, particularly those that occur at the intersection of known veins and crosscutting fault structures.
  • Silver Spruce Resources Inc., announced that its Phase 1 ground exploration program on the El Mezquite Au Project will be activated during the first week of August 2020. Silver Spruce plans to conduct geological mapping on the entire property and additional rock sampling. It also will use the Terraspec hyperspectral tool for definition of alteration intensity of silicate, carbonate and hydrous oxide species. The mapping also will document any structural data which may be correlated with the known geophysical trends, and applied to the interpretation of the property-wide mapping. In addition, the company also will initiate scheduling for the requisite environmental permitting for drilling access and pads.
  • Vizsla Resources Corp., added a fourth drill rig at its Panuco project in Sinaloa, to test new targets on the Napoleon, Cordon del Oro and Animas vein corridors.
  • Mithril Resources Limited commenced a fully funded 5,000m drilling program at its Copalquin project which is expected to run until the end of 2020. This program has already started at the high-grade Au-Ag La Soledad-Refugio-Cometa targets, and will move to other targets such as Los Pinos, Los Reyes, and San Manuel-La Constancia.

ON MINING

  • Capstone Mining Corp., reported production results from its Cozamin mine in Zacatecas for the period Q2, 2020. The company produced 8.3M Lb Cu at a cash cost of $0.98 per Lb.
  • Coeur Mining Inc., released Q2, 2020 production and financial results from its Palmarejo mine in Chihuahua. The company processed 269,641 tonnes of 2.18 g/t Au and 139 g/t Ag, with metallurgical recoveries of 86% and 72.2% respectively, to produce 15.2K Oz Au and 867K Oz Ag. Costs applicable to sales were USD $686 and $8.13 per Oz Au and Ag respectively.
  • Consolidated Zinc Ltd., mined 2,575 tonnes of 16.6% Zn, 9.5% Pb, and 66 g/t Ag and processed 2,201 tons of 16.6% Zn, 9.2% Pb, and 64 g/t Ag to produce 515.9K Lb Zn, 185.2K Lb Pb, and 30 Oz Ag, at a cash cost of $0.84 per Lb Zn. The company sold in this quarter 541 tonnes of Zn concentrate and 201 tonnes of Pb concentrate.
  • Fresnillo plc., announced production results from their Mexican operations for the period Hi, 2020. At Fresnillo mine, Zacatecas, the company processed 1,194,905 tonnes of 0.72 g/t Au, 196 g/t Ag, 1.14% Pb, and 2.12% Zn to produce 19.7K Oz Au, 6.8M Oz Ag, 25.3M Lb Pb, and 39.1M Lb Zn. At Saucito mine in Zacatecas, it processed 1,385,385 tonnes of 1.21 g/t Au, 210 g/t Ag, 1.02% Pb, and 1.84% Zn to produce 41.6K Oz Au, 8.14M Oz, 26.4M Lb Pb, and 39.12M Lb Zn. At Pyrites Plant in Zacatecas, the company processed 80,502 tonnes of 2.11 g/t Au and 252 g/t Ag to produce 1,795 Oz Au and 505K Oz Ag. At Cienega in Durango, it processed 657,893 tonnes of 1.65 g/t Au, 163 g/t Ag, 0.75% Pb, and 1.24% Zn to produce 32.4K Oz Au, 2.97M Oz Ag, 7.14M Lb Pb, and 10.8M Lb Zn. At San Julian Veins in Chihuahua-Durango border, the company processed 621,973 tonnes of 1.58 g/t Au and 115g/t Ag to produce 30.2K Oz Au and 2.1M Oz Ag while at San Julian Disseminated Ore Body, it processed 1,101,489 tonnes of 0.08 g/t Au, 137 g/t Ag, 0.39% Pb, and 1.1% Zn to produce 1,293 Oz Au, 4.15M Oz Ag, 7.5M Lb Pb, and 19.8M Lb Zn. At Herradura mine in Sonora. 8,130,282 tonnes of 0.82 g/t Au and 4 g/t Ag were processed to produce 205.7K Oz Au and 824K Oz Ag. At Noche Buena mine in Sonora, the company processed 3,330,054 tonnes of 0.54 g/t Au and 0.4 g/t Ag to produce 48.7K Oz Au and 19K Oz Ag. Consolidated results of the company were 383.3K Oz Au, 26.8M Oz Ag (including 1.3M Oz silverstream), 66.3M Lb Pb, and 108.9M Lb Zn. Total revenues of USD $ 1,054.2M, adjusted revenues of USD $1,125.1M, cost of sales of USD $733M, exploration expenses of USD $50.7M, and EBIDTA of USD $469.9M, and a profit for the period of USD $56.5M.
  • Newmont Corporation reported that 510K Oz Au, 28M Oz Ag, 190M Lb Pb, and 360M Lb Zn (880 Oz AuEq) were produced at its Peñasquito mine in Zacatecas during Q2, 2020, at cash cost and AISC of $565 and $770 per Oz Au produced respectively.
  • Starcore International Mines Ltd., released year end 2020 results from its San Martin mine in Queretaro. The company processed 229,800 tonnes of 1.82 g/t Au and 30.5 g/t Ag with metallurgical grades of 87.7% and 54.4% respectively, to produce 11.8K Oz Au and 121.8K Oz Ag (13-1K Oz AuEq) at cash and AISC of USD $66 and USD $1,149 per tonne milled respectively.
  • Sierra Metals Inc., announced restart of production at its Cusi mine in Chihuahua since it had remained in care and maintenance since April 1, 2020, due to the government-mandated shutdown to contain the advancement of COVID-19.

ON FINANCING

  • Advance Gold Corp closed its previously announced private placement for gross proceeds of $720K. Net proceed will be used for drilling its Tabasquena project in Zacatecas, as well as for general corporate purposes.
  • Aztec Minerals Corp., closed the final tranche of its private placement equity financing for gross proceeds of CAD $955K. Part of the net proceeds will be used to conduct exploration work on its Cervantes project in Sonora, and for general working capital purposes.
  • Golden Tag Resources Ltd., announced a non-brokered private placement financing led by Eric Sprott for aggregate proceeds of $5.6M. The offering is subject to an over-allotment option allowing Golden Tag to increase it to $7M, if fully exercised. Net proceeds will be used to fund advancement of its San Diego project in Durango, and for working capital and general corporate purposes.
  • Impact Silver Corp., pronounced a brokered private placement financing for CAD $6M (Zacualpan Mining District, Mexico State). Net proceeds will be used for exploration, development and general corporate purposes.
  • Kootenay Silver Inc., announced a private placement financing for gross proceeds of $5M. Net proceeds will be used for working capital requirements and other general corporate purposes (Columba and Copalito projects in Chihuahua and Sinaloa states respectively).
  • Silver Tiger Metals Inc., closed a non-brokered private placement for gross proceeds of $11M, including $4M from Eric Sprott. Net proceeds will be used to continue exploration work on its El Tigre project in Sonora, and for general working capital purposes.
  • Southern Silver Exploration Corp., reported a brokered offering of subscription receipts for aggregate gross proceeds of CAD $10M, and announced an additional CAD $4M equity raise. Net proceeds will be used to acquire an additional 60% indirect working interest (for a 100% indirect ownership) in the company’s flagship Cerro Las Minitas in Durango, and for general working capital purposes.
  • Stroud Resources Ltd., completed a non-brokered private placement financing for gross proceeds of $3M. Net proceeds will be used to advance the company´s exploration properties located in Mexico and for general working capital purposes (Santo Domingo project in Jalisco).
  • Sonoro Metals Corp., announced that it increased its non-brokered private placement financing for up to $5M with the potential to add up to $3M of additional proceeds under the overallotment option. Net proceeds will be used principally to fund company´s previously announced exploration and development plans at its Cerro Caliche project in Sonora and project property maintenance payments, and secondarily for corporate and general administrative expenses.
  • Gold Resource Corporation, declared July monthly dividend of one third of a cent per common share to their shareholders (Arista mine in Oaxaca).
  • Mag Silver Corp., signed an at the market offering sales agreement of common shares for gross proceed of up to USD $50M (Juanicipio project in Zacatecas). Net proceeds will be primarily used to fund the completion of construction at its Juanicipio project in Zacatecas, with any remainder to fund further exploration at Juanicipio and other projects, and for working capital and general corporate purposes.
  • Candente Gold Corp., applied to TSX for approval to extend the exercise period of 5M outstanding share purchase warrants issued pursuant to the private placement completed on August 2016. The amended expiry date was August 12th, 2020 and if the extension is approved, the new expiration date will be August 12th, 2021. (El Oro property in Mexico State).

ON RESOURCES AND DEVELOPMENT

  • Alamos Gold Inc., reported results of the positive internal economic study completed on its fully permitted La Yaqui Grande project located in the Mulatos mining district and announced that it will begin the development of the project. The Mineral Reserves as of December 2019 of La Yaqui Grande deposit are 19.2M tonnes of 1.17 g/t Au and 16 g/t Ag, containing 724K Oz Au and 9.8M Oz Ag. Additionally, Measured and Indicated Resources are 1.3M tonnes of 1.01 g/t Au and 8 g/t Ag, containing 43K Oz Au and 340K Oz Ag. Highlights of the economic study include an average Au production of 123K Oz Au per year; AISC of $578 per Oz Au; NPV of $165M at a 5% discount rate and an after tax IRR of 41% using a base case Au cost of $1,450 per Oz or  a NPV of  $260M at a 5% discount rate and an after tax IRR of 58% using a base case Au cost of $1,750 per Oz; mine life of five years; and an initial capital of $137M to be spent over a two year period starting in H2, 2020. From the total investment, between USD $15-$20M will be spent during 2020 and the rest during 2021 and the first semester of 2022. Part of the resources will be used to build a heap leach pad, waste dump, water treatment plant, as well as the installation of a crushing circuit.
  • GoGold Resources Inc., announced initial mineral resource estimate at its Los Ricos project in Jalisco, and updated the mineral reserve at the Parral Tailings operation, and the mineral resource estimate at its Esmeralda Tailings project located near Parral, Chihuahua. At Los Ricos South, measured & indicated resource are 10M tonnes of 0.91 g/t Au and 119 g/t Ag (2.27 g/t AuEq or 199 g/t AgEq) for a total of 293K Oz Au and 38.05 M Oz Ag (728K Oz AuEq or 63.7M Oz AgEq), and inferred resources of 3.3M tonnes of 0.88 g/t Au and 112 g/t Ag (2.17 g/t AuEq or 190 g/t AgEq) for a total of 93K Oz Au and 11.78 M Oz Ag (227K Oz AuEq or 19.9M Oz AgEq). Los Ricos South mineral resource is amenable to open pit and bulk underground mining methods, and will form the base of a PEA expected to be completed by the end of 2020. At Parral Tailings, proven + probable reserves are 15.4M tonnes of 0.34 g/t Au and 33 g/t Ag (0.72 g/t AuEq or 64 g/t AgEq) for a total of 171K Oz Au and 16.6M Oz Ag (358K Oz AuEq or 31.6M Oz AgEq). At La Esmeralda Tailings, measured and indicated resources are 5.72M tonnes of 0.26 g/t Au and 49 g/t Ag (72 g/t AgEq) for a total of 48.4K Oz Au and 9.1M Oz Ag (13.3M Oz AgEq).
  • Consolidated Zinc Limited advised that the environmental authority of Mexico has granted their approval for refurbishment of its Plomosas plant in Chihuahua, and construction and operation of the tailings storage facility (TSF). The company is finalizing the costing for the plant refit and TSF build and expect to advise the findings of the study this quarter.
  • Ridgestone Mining Inc., entered into a toll milling agreement to process bulk samples from historic dumps of the Alaska vein at its Rebeico project in Sonora. Highlights include a fixed-price toll mining agreement with nearby Real Viejo flotation mill for up to 300 tonnes per day, and bulk samples planned to process historical surface dump material grading up to 16.85 g/t Au and 2.70% Cu. In addition, Ridgestone has also received bids from mining contractors to rehabilitate historical underground workings along the Alaska vein to facilitate underground and bulk sampling of zones where drill-hole intervals assayed 36.1g/t Au and 1.22% Cu over 1.5m, and 8.31gT Au and 2.41% Cu over 3.25m in 2018.

ON DEALS AND CORPORATE ISSUES

  • Brigadier Gold Ltd., announced the appointment of its new special adviser (Picachos project in Sinaloa).
  • Santacruz Silver Mining Ltd., signed an option agreement with Grupo Peñoles to acquire the Zimapan property and related assets located in Zimapan, Hidalgo for a total consideration of USD $20M. Assets to be acquired pursuant to the Transaction include: The Zimapan mill facility which is a 75,000 dry metric tonnes (DMT) per month facility with zinc, lead and copper circuits; surface and underground infrastructure including electrical and other necessary infrastructure to carry on day to day operations; and 34 mining concessions covering an area of 5,139 hectares. To date, 14 mineral zones have been identified that are characterized as polymetallic replacement mineralization of Pliocene age. Within the mineral zones, Ag, Pb, Zn, and Cu minerals have preferentially replaced the carbonate host rocks and pre-existing skarn bodies to produce disseminated, semi-massive sulphide and massive sulphide bodies that occur in proximity to monzonitic intrusions and quartz-feldspar porphyry dikes.
  • Minera Alamos Inc., hired new VP project development and appointed new COO (Santana project in Sonora).
  • Consolidated Zinc Ltd., presented results from its annual general meeting of shareholders and advised that a new constitution was approved and adopted by shareholders (Plomosas mine in Chihuahua).
  • Candente Gold Corp., launched the “CEO Verified” Discussion Forum on AGORACOM. The forum will serve as the company’s primary social media platform to interact with both shareholders and the broader investment community in a fully moderated environment  (El Oro property in Mexico State).
  • Monarca Minerals Inc., announced that it is proposing to settle an aggregate of approximately $380.6K owing to certain officers and directors and services providers through the issuance of an aggregate of approximately 7,612,000 common shares at an issue price of CAD $0.05. The amount to be settled includes approximately $202K out of $350K in accrued directors’ fees and management and consulting fees owing to the company’s directors and officers, as the case maybe. (Tejamen project in Durango).
  • Telson Mining Corporation, provided an update on filing annual 2019 audited and Q1, 2020 financial statements. Telson expects to file the required annual and Q1, 2020 financials an MD & A by the July 30, 2020 deadline. (Tahuehueto project in Durango).

ON SOCIAL RESPONSIBILITY

  • The Municipal Water and Sanitation Board of Chihuahua (JMAS) is extracting water from the Esmeralda and Arbolito mines to feed a dam in Parral Chihuahua. The dam is currently at 13% of its capacity and in order not to cause ecological damage, it cannot be left dry. Water extracted from the mines also guarantees supply to a sector of the city.
  • Minera Peñasquito supplies water to 5 thousand people of the communities of Cedros, Mesas, Charcos, Nuevo Peñasco and Palmas. Regarding make water safe to drink, the company has four treatment plants, one inside the Peñasquito mine and three more outside, in the Cedros, Mesas and Charcos communities, from which potable water is distributed to the aforementioned localities.
  • Minera Saucito, a subsidiary of Fresnillo plc, received international certification for its commitment to the health and safety of its collaborators. The ISO 45001 Certificate: “Occupational health and safety management systems at work” was obtained from the international company BSI Group, based in the United Kingdom, whose services are: evaluating, certifying and training operating processes of different industries such as: mining, pharmaceutical, aerospace, entertainment, among others. The model stands out for its objective of reducing risks and injuries to collaborators derived from the processes associated with the exploration and exploitation of minerals. Minera Saucito is the first Fresnillo plc Unit to achieve this certification.
  • Minera Penmont (Fresnillo plc), implemented a health model for the safety of its workers in the face of the COVID-19 pandemic. The company has taken a series of multidisciplinary medical and health activities aimed at promoting a culture of disease prevention and control, and the elimination of risk factors at work. The effectiveness and implementation of this type of model is recognized by the World Health Organization and allows comprehensive care within the mine that is committed to the well-being and safety of the workforce.
  • Compañía Minera Cuzcatlán (Fortuna Silver), dissociated itself from the alleged environmental incident and reiterated its commitment to the communities in which it operates, following up on the community’s concern about physical changes in the water of two recently built grazing ponds in the Ocotillo area, in the municipality of Magdalena Ocotlán. Later on, the Federal Attorney for Environmental Protection (PROFEPA) announced that it carried out an inspection of the built grazing ponds in the Ocotillo area and demarcated mining company from any responsibility for the damages in the water pools in Ocotlán (San Jose mine in Oaxaca).

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 veins in a low sulphidation epithermal system in a prospect in Oaxaca, Mexico.  Photo by Miguel A Heredia.

The Mining and Exploration News in Mexico: Highlights on the Fourth Week of July, 2020

193By Jorge Cirett

During the 30th week of the year (July 20th to July 26th, 2020), at least 37 press releases were announced by companies working in Mexico. To note, six of those were exploration updates and strikingly twelve more were related to financing. These are either opening or closing rounds, and it is difficult to assign the total amount to any given week, but the announcements on this period add up to $23.4 M and C$168.5 M (dominated by Argonaut’s C$126.5 M and Discovery’s C$35 M). Clearly there is a spike in funds flowing to mining companies, probably supported by stronger metal prices on fears of an underperforming economy and heightened global tensions. ON MEXICO ISSUES, exploration is picking up in the country after the end of the Coronavirus lockdown, with several companies performing drilling programs. Alacero warned on excessive steel importation. ON EXPLORATION, in Sonora, Carlyle Commodities commenced its field program on Cecilia. In Chihuahua, Radius updated on the geology and geochemistry of its Plata Verde project, an interesting play. In Sinaloa, Kootenay Silver released good drilling results on its Copalito project. In Durango, Mithril Resources is about to drill Coplaquín. In Guanajuato, VanGold Mining is to start an underground drilling campaign at El Pinguico. In Zacatecas, Defiance Silver resumed its field program at San Acacio. ON MINING, Premier Gold and Fresnillo PLC presented Q2 2020 reports. Premier Gold is reducing its daily output and workforce at Mercedes. Peñasquito informed on its dealing with the Coronavirus pandemic. ON FINANCING, twelve companies made announcements regarding the opening or closing of financing rounds, or financing related news: Canasil Resources ($1.25 M), Orex Minerals ($1.1 M), VanGold Mining ($2.45 M), Golden Minerals ($7.5 M), VanGold Mining ($3.8 M), Sonoro Metals (C$5 M), Monarca Minerals (C$2 M), Discovery Metals (C$35 M), Advance Gold ($725 K), Argonaut Gold (C$126.5 M), Almaden Minerals ($2 M), Peal Mexico acquired $3.85 M of Magna Gold shares. ON RESOURCES AND DEVELOPMENT, Discovery Metals released drill results from its Cordero project. Golden Tag Resources informed on strategic growth opportunities with its San Diego project in Durango. GoGold Resources released assay results from Los Ricos South project in Jalisco. GR Silver reported results from 17 historic drill holes from its Plomosas project in Sinaloa. ON DEALS AND CORPORATE ISSUES, Prime Mining completed the acquisition of the Los Reyes project in Sinaloa. Santacruz Silver sold its Zacatecas properties to Zacatecas Silver Corp.. Evrim Resources sold its La Lola and Cumaro projects to a Mexican private company for an NSR. Redstar Gold acquired all shares of Heliodor Metals, which holds the Oso Negro, La Lola and Cumaro projects in Sonora. ON SOCIAL RESPONSIBILITY. Alamos Gold Peñasquito, Grupo Mexico and Fresnillo PLC donated medical equipment to communities near its operations. A virtual immersion program for kids was held in San Luis Potosí.

ON MEXICO ISSUES

  • Exploration is picking up speed in Mexico after the end of the Coronavirus induced lockdown. Drilling programs are beginning or already underway at Cordero, Chihuahua (Discovery Metals), Pánuco in Sinaloa (Vizsla Resources), Álamos Silver in Sonora (Minaurum), Los Reyes in Sinaloa (Prime Mining), Las Minas in Veracruz (Mexican Gold), Cerro Caliche in Sonora (Sonoro Metals), Copalquín in Durango (Mithril Resources), Rodeo in Durango (Golden Minerals) and Nora in Durango (Canasil Resources).
  • Gold and silver prices are closing the week with highs not seen in several years. Gold was above $1,900 hundred an ounce by late Friday, while silver stood above $22.70 an ounce. The Coronavirus crisis, with the foreseen economic stimulus packages by several countries and the souring relations between China and the United States are seen as the reason for the continued upward trend.
  • Alacero (Asociación Latinoamericana de Acero) warned against the excessive importation of steel, in a moment when sales are just recovering.

ON EXPLORATION

  • Defiance Silver Corp. announced the resumption of its field program that includes core re-logging, surface and underground mapping, geochemistry and surface diamond drilling at its San Acacio project in Zacatecas.
  • VanGold Mining Corp. intends to initiate an underground drilling campaign to target extensions of high-grade mineralization at its Pinguico project in Guanajuato. The company also is to clear the El Pinguico shaft and sample the bottom of the backfill, with the aim to ship it to a nearby mill for processing.
  • Kootenay Silver Inc. released assay results from three more holes at its Copalito project in Sinaloa. Core length highlighted intervals comprise 56.0 m @ 58 gpt Ag (including 22 m @ 106 gpt Ag, which include 5.0 m @ 250 gpt Ag, 0.247 gpt Au); 10.3 m @ 80 gpt Ag, 0.90 gpt Au; 7.1 m @ 30 gpt Ag, 0.31 gpt Au; 13.1 m @ 347 gpt Ag, 0.22 gpt Au (including 3.2 m @ 1,297 gpt Ag, 0.28 gpt Au, which includes 1.0 m @ 2,830 gpt Ag, 0.14 gpt Au). To date 1,600 m of the 3,000 m program have been completed.
  • Radius Gold Inc. released results of recent detailed rock chip sampling and geological mapping at its Plata Verde project in Chihuahua. Multiple sub-horizontal breccia zones cemented by barite-calcite-silver chlorides, up to 75 m in diameter have been sampled in different levels, bounded by stockwork and fracture fill of massive to crustiform banded barite-calcite with silver chlorides, sulphosalts and native silver, and disseminated mineralization of sulphosalts within the volcanic host rock. The mineralization is exposed on the sides of a small creek, and covered by felsic volcanic rocks in three directions. The average silver value of 255 samples is 156 gpt Ag, while 74 samples on the breccias average 258 gpt Ag.
  • Mithril Resources Ltd. presented its quarterly activities report, in which the acquisition of Sun Minerals Pty Ltd. was completed, $5.92 M were raised and the drilling equipment moved to site at the Copalquín project in Durango. The next move is the completion of a 5,000 m diamond drilling campaign at Copalquín.
  • Carlyle Commodities Corp. mobilized crews for exploration of its Cecilia project in Sonora. “The Phase 1 exploration program has been designed to refine targeting at Cerro Magallanes which is a large rhyolite flow dome complex, host of several historic workings and multiple high-grade gold mineral occurrences”. Programmed work includes property scale mapping, a detailed structural mapping, processing and interpretation of Aster images, surface sampling and a 10 line-km induced polarization survey. Road rehabilitation and drill pad building to support a drill program on the phase 2 is also contemplated.

ON MINING

  • Premier Gold Ltd. reported production results for the second quarter of 2020. Its Mercedes mine operations in Sonora were halted at the end of March due to the Coronavirus pandemic, and a phased re-start commenced in June. An optimization plan was developed, including the consolidation of five mine portals to one, reducing the mining rate form to 2,000 to 1,200 tonnes per day and operation of the processing plant on a campaign basis, reduction of 40% of the employee base and 75% of the mining related contractors.
  • Fresnillo PLC presented its second quarter 2020 production report. During the period the company produced 13.6 M Oz Ag, 184.4 K Oz Au, 16,180 tonnes Pb, 26,726 tonnes Zn. On exploration, 135,000 m were drilled at the mines, as part of a 440,000 m program to convert resources into reserves. Additionally 39,000 m of exploration drilling was carried out as part of the 228,000 m program at projects. Interesting results were obtained at Fresnillo and Guanajuato, while negotiations continue with communities in other projects to obtain access for drilling. Fresnillo 2Q 2020 Production1
  • Minera Peñasquito informed 15,000 COVID tests have been applied since the re-commencement of activities on June 1, resulting seven positive cases during the past week and the protocol was followed to identify all persons they had contact with. The use of face masks has been agreed with the union, on all public spaces, with the exception of the dining room.

ON FINANCING

  • Peal Mexico S.A. de C.V. announced the acquisition of 11 M shares of Magna Gold Corp. under the terms of a settlement for an aggregate deemed consideration of $3.85 M in an agreement to settle an existing arbitration proceeding between the parties in relation to Magna’s San Francisco mine in Sonora. Peal now owns 16.9% of Magna’s issued and outstanding shares.
  • Canasil Resources Inc. announced a non-brokered private placement aiming to raise up to $1 M, same placement that was oversubscribed for total gross proceeds of $1.25 M (Nora, Durango).
  • Orex Minerals Inc. closed the final tranche of its non-brokered private placement for aggregate gross proceeds of $1.11 M, bringing the total aggregate proceeds to $2.1 M. (Sandra, Durango).
  • VanGold Mining Corp. has arranged a non-brokered private placement financing to raise up to $2.45 M (El Pinguico, Guanajuato).
  • Golden Minerals Co. is increasing its previously announced offering to raise up to $7.5 M in gross proceeds (Rodeo, Durango).
  • VanGold Mining Corp. expanded due to increased demand the size of its non-brokered private placement financing, for gross proceeds of $3.8 M (El Pinguico, Guanajuato).
  • Sonoro Metals Corp. is to undertake a non-brokered private placement to raise up to C$5 M in gross proceeds (Cerro Caliche, Sonora).
  • Monarca Minerals Inc. announced a non-brokered private placement to raise up to C$2 M (San Jose, Chihuahua).
  • Discovery Metals Corp. arranged a non-brokered institutional private placement to raise C$35 M, “ Eric Sprott has agreed to invest C$15,000,000 in the Private Placement,” (Cordero, Chihuahua).
  • Advance Gold Corp. announced it proposes to increase to $725 K its previously announced non-brokered private placement (Tabasqueña, Zacatecas).
  • Argonaut Gold Inc. closed its previously announced bought deal public offering for aggregate gross proceeds of C$126.5 M, thorough a syndicate of underwriters led by BMO Capital Markets (San Agustín, Durango).
  • Almaden Minerals Ltd. announced a proposed non-brokered private placement financing intended to raise up to $2 M (Ixtaca, Puebla).

ON RESOURCES AND DEVELOPMENT

  • Discovery Metals Corp. released results from eight holes at its Cordero project in Chihuahua. Highlighted core length intercepts comprise 5.3 m @ 225 gpt Ag 0.7 gpt Au, 5.1% Pb, 5.5% Zn (including 1.4 m @ 700 gpt Ag, 0.74 gpt Au, 16.1% Pb, 14.0% Zn); 4.3 m @ 365 gpt Ag, 0.55 gpt Au, 2.1% Pb, 4.0% Zn (including 1.5 m @ 489 gpt Ag, 0.82 gpt Au, 2.9% Pb, 11.1% Zn); 120.4 m @ 30 gpt Ag, 0.11 gpt Au, 0.4% Pb, 1.5% Zn; 134.6 m @ 23 gpt Ag, 0.05 gpt Au, 0.5% Pb, 1.1% Zn; 44.8 m @ 35 gpt Ag, 0.10 gpt Au, 0.7% Pb, 1.7% Zn; 0.8 m @ 1,992 gpt Ag, 0.79 gpt Au, 16.1% Pb, 14.2% Zn.
  • Golden Tag Resources Ltd. informed on strategic growth opportunities with its San Diego project in Durango. The project with 31.6 M Oz in indicated resources is fully permitted for drilling four key high priority target zones: 1849, Fernandez, Trovador and Arroyo. Drill intercepts in the Fernandez zone include 212 m @ 54 gpt Ag, 0.5% Pb, 1.3% Zn; 238 m q 64 gpt Ag, 0.8% Pb, 1.6% Zn; 257 m @ 66 gpt Ag, 0.7% Pb, 1.7% Zn; 186 m @ 53 gpt Ag, 0.5% Pb, 1.2% Zn. Mergers, strategic, corporate and project acquisitions are being evaluated, with a focus on silver.
  • GoGold Resources Inc. released the assay results from six diamond drill holes at the Los Ricos South project. Two holes were drilled at Rascadero, two at San Juan and two more at Las Lamas. Highlighted core length intersections comprise: 0 m @ 0.25 gpt Au, 59 gpt Ag; 16.7 m @ 1.32 gpt Au, 268 gpt Au (including 5.4 m @ 3.33 gpt Au, 673 gpt Ag); 21.5 m @ 0.21 gpt Au, 26 gpt Ag; 7.7 m @ 0.45 gpt Au, 65 gpt Ag; 8.9 m @ 0.8 gpt Au, 31 gpt Ag.
  • GR Silver Mining Ltd. reported high-grade results from 17 historical drill holes from the San Juan area of its Plomosas property in Sinaloa. These results define a mineralized strike length of up to 1,000 m. Some of the highlighted true width intercepts comprise: 3.8 m @ 563 gpt Ag, 0.3 gpt Au, 1.6% Pb, 2.7% Zn; 2.5 m @ 846 gpt Ag, 0.8 gpt Au, 2.7% Pb, 6.0% Zn (including 0.9 m @ 2,300 gpt Ag, 2.1 gpt Au, 7.6 % Pb, 16.3% Zn); 3.3 m @ 335 gpt Ag, 0.1 gpt Au, 0.1% Pb, 0.2% Zn; 5.6 m @ 363 gpt Ag, 0.1 gpt Au, 0.8% Pb, 1.9% Zn; 10.7 m @ 226 gpt Ag, 0.3% Pb, 0.3% Zn; 2.8 m @ 141 gpt Ag, 0.3% Pb, 0.7% Zn.

ON DEALS AND CORPORATE ISSUES

  • Prime Mining Corp. completed the acquisition of the Los Reyes project (formerly Guadalupe de Los Reyes) in Sinaloa. The company made a US$1.5 M payment to Vista Gold Inc., after which Vista no longer retains two separate 2% net smelter royalties on production from open-pit or underground mining, or a back-in right to assume a 49% non-carried interest in any underground mining. “Prime is required to pay Vista an additional US$2,100,000 through two payments of: (i) US$1,100,000 no later than six months from the Acquisition Date; and (ii) US$1,000,000 no later than twelve months from the Acquisition Date. If the Company fails to make the two payments, Vista’s net smelter royalties and back-in right will be reinstated”.
  • Santacruz Silver Mining Ltd. entered into an agreement with Zacatecas Silver Corp. for the sale of a 100% interest in the Zacatecas properties for consideration of US$1.5 M and the issuance of 5 M shares of Zacatecas Silver. The Zacatecas properties comprise 149 mining concessions totaling approximately 7,826 ha in the Fresnillo Silver Belt, and include the Panuco deposit, which has an inferred resource of 3.95 M tonnes @ 153 gpt Ag, or 19.5 M Oz Ag, remaining open along strike.
  • Evrim Resources Corp. entered into an agreement with a private Mexican company to sell two non-core exploration properties in exchange of NSR royalties. La Lola is a 6,301 ha land package that covers the La Barra fluorite vein and El Cumaro is a 620 ha claim covering a low sulfidation epithermal field. Evrim will transfer 100% interest in the La Lola and Cumaro properties in exchange for 2% and 1% NSR respectively, and a 0.5 % NSR right on 7,053 ha of the Picachos claims, should the claims be acquired by the Mexican private company. Half of the La Lola NSR can be bought for US$1.75 M and half of the El Cumaro NSR by US$1.0 M.
  • Redstar Gold Corp. entered into a binding agreement to acquire 100% of the shares of Heliodor Metals Ltd., in which Redstar has agreed to issue 86.5 M shares for 100% of the outstanding Heliodor shares. Heliodor has interest in: the Oso Negro 1,500 ha project, which has three main veins and no drilling; The La Lola 5,400 ha land package which contains the 5 km long La Barra epithermal vein (see previous entry under Evrim); Cumaro “is the downthrown block of a large low sulphidation vein field”. Redstar has agreed to conduct a C$6.0 M private placement

ON SOCIAL RESPONSIBILITY

  • Alamos Gold donated medical equipment to the Sahuaripa municipality in Sonora.
  • Peñasquito donated medical equipment to several authority bodies in Zacatecas.
  • Grupo Mexico donated protection equipment to general hospitals in Cuautla and Axochiapan in Morelos.
  • The Instituto de Metalurgia de San Luis Potosí carried out a virtual immersion program for kids.
  • Fresnillo PLC continues to provide cleaning and medical supplies in Guadalupe y Calvo (Chihuahua), Caborca (Sonora) and Fresnillo (Zacatecas).

Content like what you have just read can be seen at https://gambusinoprospector.com/ and at LinkedIn’s Mexico Mineral Exploration Group.

On the image below: Silicified rocks signaling the paleo water table of a low sulfidation epithermal system in Queretaro. Picture by Jorge Cirett.

193

The Mining and Exploration News in Mexico: Highlights on the Third Week of July, 2020.

 

Argillic alteration

By Miguel A Heredia

During the twenty nine week of the year (July 13th to July 19th, 2020), at least 47 press releases were announced by companies working in Mexico, with ten communicating production and financial results, nine commenting on Mexican issues, eight announcing financial rounds, seven informing on exploration results, five disclosing deals and corporate issues, four reporting on resources and developments, and four discussing on social issues. ON MEXICO ISSUES, Claudia Pavlovich and Hector Astudillo, governors of Sonora and Guerrero respectively, asked the Ministry of Economy to reconsider returning to the support that was granted to the municipalities with the Mining Fund. Jose Ignacio Peralta Sanchez, governor of Colima state requested the reactivation of The Mining Fund. Karen Flores, Director of the Mexican Mining Chamber (CAMIMEX), stated that 16% of the workforce in the Mexican mining industry is occupied by women. The Secretary of Economic Development of Michoacan, Jesus Melgoza Velazquez, announced that the regional committee of the Mining Fund for the Development of Mining Areas was reactivated after approximately two years.  Fernando Alanis, president of the Mexican Mining Chamber (CAMIMEX) declared that the mining sector in the country is at risk of contracting if new concessions are not granted.  Torex Gold plans additional investment of USD $ 500M in Mexico but asked the government for certainty. The Ministry of Labor and Social Security (STPS) reported that it is in preparation for the next stage of the rescue of the miners who were trapped in the Pasta de Conchos mine in Coahuila 14 years ago. The Zacatecas Mining Cluster (Clusmin) and its members started the construction of the Compatible Mining Center in Zacatecas. Minera Esperanza Silver (Alamos Gold Inc.) reaffirmed its commitment with Mexico. ON EXPLORATION, In Sonora, Colibri concluded its current phase of field work at its Evelyn project and planed the next phase trenching program, Ridgestone reported drill results from the three first holes collared at its Rebeico project, Minaurum commenced phase II drilling at its Alamos Silver project, and Silver Viper reported results from four holes drilled at its La Virginia project. In Chihuahua, Kootenay released drill results from its Columba project, and Consolidated Zinc provided an exploration update on its Potrero and Don Lucas prospects.  In Sinaloa, Vizsla expanded the exploration program at its Panuco project and added a third drill rig.  ON MINING, Aura, Avino, Consolidated Zinc, First Majestic, Fortuna, GoGold, Gold Resource, McEwen, Santacruz and Sierra Metals reported Q2, 2020 production results from their Mexican operations. ON FINANCING, Aztec Minerals closed the first tranche of its private placement for gross proceeds of CAD $2.12M (Cervantes project, Sonora). Silver Tiger announced a plan to conduct a non-brokered private placement for gross proceeds of up to $11M (El Tigre project, Sonora). Tarachi Gold announced it intends to complete a non-brokered private placement for net proceed of up to CAD $5M (Tarachi project, Sonora).  Xtierra closed its previously announced private placement for gross proceeds of $1M (Bilbao project, Zacatecas). Mammoth announced lifting of management cease trade order and issuance of shares for debt and incentive options (Tenoriba project, Chihuahua). Mexus announced that the company satisfied a $57K note payable by way of conversion (Santa Elena mine, Sonora). Telson announced that further to its application for a management cease trade order, which was granted by the British Columbia Securities Commission, it has been required to provide bi-weekly status reports (Tahuehueto project, Durango). One World Lithium announced that it will continue providing bi-weekly updates following a management cease trader order granted for the British Columbia Securities Commission (Salar del Diablo project, Baja California Norte). ON RESOURCES AND DEVELOPMENT, Endeavour announced a final PFS on its Terronera mine in Jalisco. GR Silver resumed the surface drilling at its Plomosas project in Sinaloa.  Prime Mining provided an update regarding the initial phase of exploration planned on its Los Reyes project in Sinaloa. Minera Alamos provided mid-year construction update at its Santana project in Sonora.  ON DEALS AND CORPORATE ISSUES, Carlyle entered in an option agreement with Riverside to purchase 100% interest in the Cecilia project in Sonora.  Golden Minerals signed a letter of intent with Fabled Copper to sell its Santa Maria project in Chihuahua. Minera Alamos announced the appointment of a new member to its board of directors (Santana project, Sonora). Oroco announced the appointment of a director to join to its board of directors (Santo Tomas project, Sinaloa). ON SOCIAL RESPONSIBILITY, Fresnillo plc continues to implement sanitary measures in its work centers and support the communities surrounding the operations. Grupo Peñoles supported the donation of bed-chairs for Coahuila hospitals. MSX (New Gold Inc.) donated pantries to vulnerable population in the communities of Cerro de San Pedro, San Luis Potosi, as well as personal protection equipment to hospitals. Camino Rojo S.A. de C.V. (Orla Mining Ltd.) continued helping communities and government agencies where it operates to mitigate the risk of the COVID-19 pandemic.

 ON MEXICO ISSUES

  • Claudia Pavlovich and Hector Astudillo, governors of Sonora and Guerrero respectively, asked the Ministry of Economy to reconsider returning to the support that was granted to the municipalities with the Mining Fund. The governor of Guerrero said that the Mining Fund can be used to reactivate the economy in the most affected regions by the unemployment of the industry due to the COVID-19 pandemic, as well as to attend to the population affected by the virus, as well as for medical care and medicines. The governor of Sonora said that this support marked a before and after in the municipalities where the resources were applied, and stated that the Mining Fund should be reconsidered to promote the development of the municipalities. In addition, governors of Coahuila, Durango and Chihuahua highlighted the importance of mining activity in their states.
  • José Ignacio Peralta Sanchez, governor of Colima state asked the Undersecretary of Mining, Francisco Jose Quiroga Fernandez, to resume Mining Funds pending from some years ago, since due to the current economic conditions is when this resource is most required. The governor stressed that mining is an engine for the entity’s economy, since it has important productive chains, which makes it a strategic sector.
  • Karen Flores, Director of the Mexican Mining Chamber (CAMIMEX), stated that 16% of the workforce in the Mexican mining industry is occupied by women. She argued that although it seems a minority figure, its increase has been exponential. She also commented that Mexican mining adheres to the agreements of the 2030 agenda of the United Nations (UN) in two of its main objectives, such as the reduction of inequality and gender equity.
  • The Secretary of Economic Development of Michoacan, Jesus Melgoza Velazquez, announced that the regional committee of the Mining Fund for the Development of Mining Areas was reactivated after approximately two years. The Mining Fund will allow physical infrastructure works to be carried out in municipalities with mining activity such as Tlalpujahua, Tzitzio, Tuzantla, Huetamo, Villa Madero, La Huacana, Arteaga, Coalcoman, Aquila and Lazaro Cardenas. Since the creation of the regional committee of the mining fund in 2014, MXP $171M have been earmarked for the realization of 61 projects such as paving works for streets and roads, construction of sanitary landfills, infrastructure for the drinking water service, sewerage and water treatment plants, placement of LED street lights, construction of classrooms, roofs and civic patios in schools.
  • Fernando Alanis, president of the Mexican Mining Chamber (CAMIMEX), declared that the mining sector in the country is at risk of contracting if new concessions are not granted. Alanis recalled the importance of mining activity, in order to continue the 370,000 direct jobs and 2-3 millions of indirect jobs generated by this sector, in addition to the fact that for each hectare concessioned under active exploitation, it has a spill of MXP $22,829M. He also said that between 2016 and 2019 the sector paid MXP $174,500M for taxes.
  • Jody Kuzenko, President & CEO of Torex Gold Resources Inc., declared that it plans additional investments of USD $ 500M in Mexico in the construction and commissioning of its Media Luna project in Guerrero but asked the government for certainty in key areas such as in the rule of law and in economic policies to keep its investment projects.
  • The Ministry of Labor and Social Security (STPS), reported that it is in preparation for the next stage of the rescue of the remains of the 65 miners who were trapped in the Pasta de Conchos mine in Coahuila 14 years ago.
  • The Zacatecas Mining Cluster (Clusmin) and its members, started the construction of the Compatible Mining Center in Zacatecas, which is expected to take a year. The Compatible Mining Center aims to promote the development of science, the use of the latest technology and promote innovation for the development of specific purpose applications in the mining environment in the areas of occupational health, physical and psychological safety of workers, and protection of the environment in mining operations in the state of Zacatecas.
  • Minera Esperanza Silver (Alamos Gold Inc.), reaffirmed its commitment with Mexico and highlighted the enormous opportunity for Morelos to be part of the mining sector and the national extractive industry, which is equivalent to 8.3% of industrial GDP. The spokesperson for the Esperanza Silver mining company in Mexico, responsible for the Esperanza project, located in the municipality of Temixco stated that Temixco is shaping up to be one of the mining municipalities in Mexico, where well-being and possibilities for economic and social development are imminent and we must prepare for it.

ON EXPLORATION

  • Colibri Resource Corporation, concluded the current phase of field work and released mapping and sampling results from its Evelyn project in Sonora. A total of 40 grab samples were collected, 9 of which returned grades greater than 0.1 g/t Au, including 4 running more than 1 g/t Au, with a peak value of 8.4 g/t Au at the Cerro Rojo target area. The high-grade samples all consist of quartz vein, veinlets, and quartz breccia with oxidized pyrite and goethite. Colibri plans the next phase on trenching at its Evelyn project.
  • Ridgestone Mining Inc., reported drill results from the three first holes collared at its Rebeico project in Sonora. 1,674m were completed on the New Year Zone to investigate the subsurface extent of significant gold and copper mineralization previously sampled on surface. Significant drill intersections were encountered in hole 20REB013D with 2.13 g/t Au and 1.79% Cu over a width of 16.25m, including 5.25 g/t Au and 1.46% Cu over a width of 4.35m. Holes 20REB014D and 20REB015D intersected 0.25% Cu and 0.19%Cu over a width of 16.2m and 10.9m respectively.
  • Minaurum Gold Inc., commenced phase II drilling program at its Alamos Silver project in Sonora with a minimum of 20,000m. This phase will involve systematically stepping out from discoveries made during Phase I drilling beginning with two drill rigs. “One drill will offset the Europa-Guadalupe discovery hole (AL17-007) which returned 8.25 m grading 1,760 g/t Ag. The other drill will test targets at Promontorio, both along the vein trend and beneath the Promontorio mine where recently acquired historical data revealed holes that returned up to 12.2 m grading 710 g/t Ag”.
  • Silver Viper Minerals Corp., reported results from four new drill holes at La Virginia, two from the El Rubi discovery area and two from the exploration prospect, Macho Libre. Significant drill intersections were encountered in hole LV20-234 collared at El Rubi with 2.05 g/t Au and 11 g/t Ag over a true width (TW) of 4.26m, including 3.59 g/t Au and 16 g(/t Ag over a TW of 1.18m; hole LV20-231M drilled at Macho Libre with 0.63 g/t Au and 24 g/t Ag over a TW of 11.76m, including 1.07 g/t Au and 54 g/t Ag over a TW of 3.60m; and hole LV20-233M drilled at Macho Libre with 1.41 g/t Au and 26 g/t Ag over a TW of 0.90m. Drilling at the El Rubi Discovery Zone continues to expand the system and the rig is being mobilized to a second exploration target named Rubi East.
  • Kootenay Silver Inc., released results from five drill holes collared at its Columba project in Chihuahua. These holes are step outs along strike and to depth from high-grade intercepts previously reported in the Phase-II drill campaign. Significant drill intersections were encountered in hole CDH-20-052 with 199 g/t Ag, 0.08% Pb, and 0.27% Zn over 7.53m, including 279 g/t Ag, 0.11% Pb, and 0.38% Zn over 4.08m, and including 601 g/t Ag, 0.03% Pb, and 0.12% Zn over 1.23m within the F Vein; hole CDH-20-053 with 116 g/t Ag, 0.11% Pb, and 0.24% Zn over 34m, including 175 g/t Ag, 0.17% Pb, 0.37% Zn over 11m, including 496 g/t Ag, 0.55% Pb, and 0.91% Zn over 3m, including 620 g/t Ag, 0.35% Pb, 0.9% Zn over 2m, including 753 g/t Ag, 0.38% Pb, and 1% Zn over 0.95m in F Vein and Hanging Wall structure; and hole CDH-20-054 with 158 g/t Ag, 0.4% Pb, and 0.35% Zn over 5m, including 319 g/t Ag, 0.18% Pb, and 0.5% Zn over 1.8m in F Vein.
  • Consolidated Zinc Limited, provided an exploration update on its Potrero and Don Lucas prospects in Chihuahua and has reserved $600K for exploration field work this year. The company has continued its Au exploration with desktop studies which has established targets and defined a scope of work for immediate commencement of field mapping, sampling and drilling in the current field season.
  • Vizsla Resources Corp., expanded the exploration program at its Panuco project from 14,500m of drilling to 31,100m and added a third rig, which has already commenced to drill. In addition, a fourth drill rig is expected to arrive at the beginning of August. “Third and fourth drill rigs will test exploration targets including the strike extensions of the Napoleon vein corridor, the Tajitos vein, the San Carlos mine at Animas and additional targets along the Cordon del Oro vein corridor”. Drilling is continuing at the high-grade Napoleon discovery with drill hole NP-20-14 in progress. Drilling is testing to the south and down dip of the discovery hole NP-20-02 before moving back north to test vein extension near hole NP-20-07. The updated July-December exploration program is estimated to cost approximately $6.9 M.

 ON MINING

  • Aura Minerals Inc., presented Q2, 2020 production results from its Aranzazu mine in Zacatecas. It produced 5K Oz Au, 91.6K Oz Ag, and 6.2M Lb Cu (14,748 Oz AuEq).
  • Avino Silver & Gold Mines Ltd., announced that it processed 40,190 tonnes of 0.40 g/t Au, 49 g/t Ag and 0.58% Cu at metallurgical recoveries of 79%, 90% and 90% respectively, to produce 404 Oz Au, 50.6K Oz Ag, and 459.8K Lb Cu (158.3K Oz Ag) during the period Q2,2020 from its Avino mine in Durango.
  • Consolidated Zinc Limited, reported that Zn-Pb grades exceeding 25% and 8% respectively are being encountered at the newly opened up Las Espadas underground area while the semi-oxidized ore continues to be mined and delivered at rates of above 15o tonnes per day. At its Aldama plant, it has achieved record availability to July 10 2020 of 94.5% while the recoveries are improving above performance thanks to the effort of the technical team.
  • First Majestic Silver Corp., presented production results for the period Q2, 2020 from their Mexican operations. The table below shows mine by mine production figures:

At the end of Q2, 14 exploration drill rigs were active across the company’s projects consisting of 11 rigs at San Dimas, two rigs at Santa Elena and one rig at La Encantada. The company anticipates adding seven additional rigs in Q3 with a primary focus on the regional potential around Santa Elena.

  • Fortuna Silver Mines Inc., released Q2, 2020 production results from its San Jose mine in Oaxaca. The company milled 160,151 tonnes of 1.42 g/t Au and 220 g/t Ag at metallurgical recoveries of 90.91% and 90.84% respectively to produce 6,654 Oz Au and 1.03M Oz Ag, at cash cost of USD $66/ton.
  • GoGold Resources Inc., presented production results from its Parral Tailings project in Chihuahua for the period Q2, 2020. The company produced 1,914 Oz Au, 270K Oz Ag, and 233K Lb Cu (504.4K Oz AgEq).
  • Gold Resource Corporation, announced preliminary production results from its Oaxaca Mining Unit in Oaxaca. It produced 2,441 Oz Au, 185.3K Oz Ag, 551K Lb Cu, 2.56M Lb Pb, and 6.75M Lb Zn during the period Q2, 2020.
  • McEwen Mining Inc, produced in Q2, 2020 from its El Gallo mine in Sinaloa over 1,900 Oz AuEq from residual leaching of the heap leach pad.
  • Santacruz Silver Mining Ltd., released Q2, 2020 production and financial results from its Mexican operations. At Zimapan, Hidalgo the company milled 139,903 tonnes to produce 829,514 Oz AgEq from which 626,984 were sold, at cash cost per tonne and for Oz AgEq of $48.15 and $16.53 respectively, and AISC of $17.57 per Oz AgEq. At Veta Grande, Zacatecas, it milled 11,095 tonnes to produce 64,870 Oz AgEq from which 47,854 were sold, at cash cost per tonne and for Oz AgEq of $148.36 and $39.54 respectively, and AISC of $46.34 per Oz AgEq. At Rosario, San Luis Potosi, the company milled 17,497 tonnes to produce 73,251 Oz AgEq from which 61,111 were sold, at cash cost per tonne and for Oz AgEq of $62.12 and $23.47 respectively, and AISC of $29.01 per Oz AgEq.
  • Sierra Metals Inc., announced production results from its Bolivar mine in Chihuahua for the period Q2, 2020. Cusi mine remained in care and maintenance throughout Q2, 2020. At Bolivar mine, the company processed 308,951 tonnes of 0.30 g/t Au, 26 g/t Ag, and 0.93% Cu at metallurgical recoveries of 63.79%, 82.80%, and 87.09% respectively, to produce 1,912 Oz Au, 214K Oz Ag, and 5.54M Lb Cu. “At Cusi mine, Chihuahua, development is currently on-going in a zone that will bypass the previously announced area of subsidence and provide access to higher-grade economic ore to provide feed for the mill. Production is expected to recommence after the mine development work is completed and once a process can be implemented at the mine to mitigate risk to employees at the site through a testing and quarantine methodology similar to the company’s other operations”.

 

ON FINANCING

  • Aztec Minerals Corp., closed the first tranche of its private placement for gross proceeds of CAD $2.12M. Part of the gross proceeds will be used to conduct exploration work at its Cervantes project in Sonora, and for general working capital purposes.
  • Silver Tiger Metals Inc., announced a plan to conduct a non-brokered private placement for gross proceeds of up to $11M. Net proceeds will be primarily used for further exploration at its El Tigre project in Sonora.
  • Tarachi Gold Corp., announced it intends to complete a non-brokered private placement for net proceeds of up to CAD $5M. Gross proceeds will be used for exploration of its Tarachi project in Sonora, corporate development, and general working capital purposes.
  • Xtierra Inc., closed its previously announced private placement for gross proceeds of $1M. Nett proceeds will be used to expand and diversify its royalty portfolio into Canada, USA and other mining friendly jurisdictions (Bilbao project, Zacatecas).
  • Mammoth Resources Corp., announced lifting of management cease trade order and issuance of shares for debt and incentive options. The company has yet to file its Q1, 2020 financial statement and Management Discussion & Analysis which were due on June 30, 2020. It expects to file these statements shortly (Tenoriba project, Chihuahua). Mammoth also announced the issuance of 2,503,000 common shares to settle a total of $87,605 in related party and third party debts.
  • Mexus Gold US, announced that the company satisfied a $57K note payable by way of conversion. In addition, Mexus’ audit obligation has been met with the audit expected to be completed in the next 7 days. The audit process was delayed due to the company moving from an exploration company to a production company (Santa Elena mine, Sonora).
  • Telson Mining Corporation, announced that further to its application for a management cease trade order, which was granted by the British Columbia Securities Commission on June 16, 2020, it has been required to provide bi-weekly status reports in accordance with the alternative information guidelines in National Policy 12-203 management cease trade orders, until such time as the company has completed and filed its audited annual financial statements and management’s discussion and analysis in respect of the financial year ended December 31, 2019 (Tahuehueto project, Durango).
  • One World Lithium Inc., announced that it will continue providing bi-weekly updates following a management cease trader order granted for the British Columbia Securities Commission. The company anticipated that the annual filings and the quarterly filings will be filed on or before July 30, 2020 (Salar del Diablo project, Baja California Norte).

ON RESOURCES AND DEVELOPMENT

  • Endeavour Silver Corp., announced a final PFS on its Terronera mine in Jalisco. Base case highlights of the PFS include a NPV 5% of $137M, and IRR of 30%, annual production average of 3M Oz Ag and 32.8K Oz Au (5.9M OZ AgEq) over an initial  10 year mine life, a cash cost and AISC of $0.004 and $2.10 per Oz Ag net of the Au credit respectively, Initial and sustaining capital expenditures of $99M and $60M respectively, a payback period of 2.7 years, and a Pre-Tax and After-Tax undiscounted free cash flow of $315M and $217M respectively.
  • GR Silver Mining Ltd., restarted the 4,500m surface drilling at its Plomosas project in Sinaloa with three drill rigs which is expected to continue through 2020. This drill program is focused on shallow drilling (up to 150m below surface) to expand the known mineralized zones along strike at Plomosas mine and San Juan-La Colorada areas, and follow-up drilling on several new high grade Au-Ag low sulphidation epithermal veins occurrences at the Yecora and El Saltito. Additionally, GR Silver will commence recon work on 11 priority targets identified to contain potential for new discoveries.
  • Prime Mining Corp., provided an update regarding the initial phase of exploration planned on its Los Reyes project in Sinaloa. Focus of the phase 1 program is to upgrade and expand the current mineral resource, test identified zones of high-grade, and advance the understanding of the geology and structural controls of the known deposits of the property. The program is expected to cost approximately $6M and has a targeted completion date of late Q1, 2021.
  • Minera Alamos Inc., provided mid-year construction update at its Santana project in Sonora. The company announced that the heap leach pad area has been cleared of all vegetation and is undergoing contouring ahead of clay placement and the pad liner installation, and that the bypass road construction at either end of the heap leach pad area is underway; reported that the explosive storage & detonator bunkers are awaiting final inspection from the Mexican authorities ahead of the explosive permit issuance; and that the fabrication of the plant carbon columns is complete with work underway for the remaining plant steel structure.

ON DEALS AND CORPORATE ISSUES

  • Carlyle Commodities Corp., entered into an option agreement with Riverside to earn 100% interest in the Cecilia project in Sonora. In order to purchase 100% interest in the Cecilia property, Carlyle has to make aggregate cash payments of $200K over 3 years to Riverside, issue 1.5M common shares, issue 3M non-transferable special warrants, and incur an aggregate of $2.5M in exploration expenditures. Riverside will retain a 2.5% NSR.
  • Golden Minerals Company, signed a letter of intent with Fabled Copper Corp., to sell its Santa Maria project in Chihuahua. The Agreement provides a 10-calendar day period during which Fabled will conduct its due diligence. If Fabled executes the option agreement to acquire 100% interest in Santa Maria property, it has to make a cash payment of USD $0.5M and issue 1M Fabled common shares, USD $1.5M in cash 12 months after closing of the transaction, USD $2M in cash 24 months after closing of the transaction, and upon Fabled exercises the option, it will grant to Golden a 1% NSR.
  • Minera Alamos Inc., announced the appointment of a new member to its board of directors (Santana project, Sonora).
  • Oroco Resource Corp., announced the appointment of a new member to join to its board of directors (Santo Tomas project, Sinaloa).

ON SOCIAL RESPONSIBILITY

  • Fresnillo plc, continues to implement sanitary measures in its work centers and support the communities surrounding its operations in Fresnillo, Saucito, Juanicipio in Fresnillo, Zacatecas, Orisyvo in Uruachic, Chihuahua, Herradura, Noche Buena and Centauro in Caborca, Sonora, San Julian and Cienega in Durango, and in Torreon, Coahuila. . The company donated a last-generation respirator and medical protection equipment such as N-95 respirators, latex gloves, disinfectant gel, disposable gowns, disposable face masks, face masks, and disposable surgical face masks to the General Hospitals of the Mexican Institute of Social Security (IMSS), as well as thousand food pantries. With these actions, Fresnillo plc, belonging to the Mexican corporate Grupo BAL, joins the commitment to health care, with the purpose of guaranteeing the well-being of families and the population that lives in the areas surrounding its operations.
  • Grupo Peñoles, through contributions made by employees to the service of Met-Mex Peñoles, supported the donation of bed-chairs to Coahuila hospital to support those who deserve decent living conditions.
  • MSX (New Gold Inc.), donated pantries to vulnerable population in the communities of Cerro de San Pedro, San Luis Potosi, as well as personal protection equipment to hospitals designated as medical centers to care for patients with COVID-19.
  • Camino Rojo S.A. de C.V. (Orla Mining Ltd.), continued helping communities and government agencies providing support in sanitary filters installed in the border of Zacatecas with the different states; donated pantries during the months of April, May and June containing products from the basic basket which are intended to contribute to the economy of families in the communities of influence, which are San Tiburcio, Berrendo and San Francisco de los Quijano.

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, argillic alteration related to a porphyry copper system in a prospect in Michoacan, Mexico.  Photo by Miguel A Heredia.