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

 

Boiling texture in an epithermal quartz vein

By Miguel A Heredia

During the third week of the year (January 13th to January 19th, 2020), at least 27 press releases were announced by companies working in Mexico, with eight communicating production results, seven reporting on resources and developments, five informing on exploration results, two disclosing deals and corporate issues, two discussing issues on social responsibility, two commenting on Mexican issues, and one announcing financial rounds.  ON MEXICO ISSUES, The Mexican mining industry, the thirteenth largest in the world, is laying the groundwork for generating more investment in this important development engine. Mining  activity has increased in Tamaulipas, according to the General Directorate of Mines.  ON EXPLORATION, In Sonora, Silver Viper released drilling results from its La Virginia project and Aztec Minerals provided a 2020 outlook for its Cervantes project. In Chihuahua, Radius announced results from the third phase of drilling from its Amalia project. In Sinaloa, Vizsla Resources discovered a new high grade vein at its Panuco project. In Zacatecas, Advance Gold commenced the third phase geophysical survey at its Tabasquena project. ON MINING, Alamos Gold commenced operation at its Cerro Pelon mine in Sonora. Torex announced that it expects to produce between 420K to 480K Oz Au in 2020 (El Limón Guajes, Guerrero). Great Panther, GoGold, McEwen, Fortuna Silver, Avino, and Coeur reported Q4 and full year 2019 production and financial results from their Mexican operations.   ON FINANCING, Minera Alamos closed a private placement with Osisko for gross proceeds of $6M. (Santana project, Sonora). ON RESOURCES AND DEVELOPMENT, Starcore staked two new claims near its San Martin Mine in Querétaro. Prime Mining retained a consulting company to complete an estimate of the Au and Ag resources for its Los Reyes mine in Sinaloa. Capstone presented expansion and infill drilling results from its Cozamine mine in Zacatecas. Torex announced an updated resource estimate for its Media Luna project in Guerrero.  SilverCrest announced it plans to release in-fill and expansion drill results from six areas in Q1, 2020. Minera Alamos commenced construction of its Santana mine in Sonora. Southern Silver reported that metallurgical test work confirmed that a marketable Cu, Pb, Zn concentrate can be produce at its Cerro Las Minitas project in Durango. ON DEALS AND CORPORATE ISSUES, Sonoro Metals granted stock options to certain directors, officers, and consultants (Cerro Caliche project, Sonora). Radius signed a binding option agreement to acquire from a private family an 800 Ha property called Palmillas, which is adjacent to its Amalia project in Chihuahua. ON SOCIAL RESPONSIBILITY, The Mining Fund contributed in the road construction in the municipality of Tepehuanes, Durango. The Peñoles Community Center will give new human development workshop.

ON MEXICO ISSUES

  • The Mexican mining industry, the thirteenth largest in the world, is laying the groundwork for generating more investment in this important development engine. The Ministry of Economy works to have a financing model like the Canadian one. One of the government’s bets is that Mexico, with private investment, be a producer of rechargeable Li batteries for electric cars. José Francisco Quiroga Fernández, the Under Secretariat of Mining said in an interview, that USD $ 100B will be the value of annual Li sales in 2029, according to Bloomberg. 243M tonnes of Li are estimated to be in the Sonora deposits. At the moment that market is worth just over USD $22B; However, according to Bloomberg NEF estimates in 2023 it exceeds USD $40B, in 2025 it will be USD $60B and in 2030, USD $116B, that is to say almost 420% more than the global sales of 2019.
  • Mining activity has increased in Tamaulipas, according to the General Directorate of Mines. The state has 124 mining concessions in 19 of their municipalities. Profits produced by the mineral extraction of Pb, Zn, Cu, Au, Ag, serpentine, and stone aggregates exceed MXP $2,000M per year.

ON EXPLORATION

  • Silver Viper Minerals Corp., announced drilling results for the first three holes of the phase 2 from its Virginia project in Sonora. Significant results were encountered in hole LV19-209 with 3.22 g/t Au and 1,054 g/t Ag (1,280 g/t AgEq) over 1.8m, and other interval with 2.50 g/t Au and 27 g/t Ag (202 g/t AgEq) over 7m, including 5.27 g/t Au and 41 g/t Ag (410 g/t AgEq) over 3m; hole LV19-210 with 1.47 g/t Au and 216 g/t Ag (319 g/t AgEq) over 6m, including 6.32 g/t Au and 1,071 g/t Ag (1,513 g/t AgEq)over 1m; and hole LV19-211 with 13.39 g/t Au and 446 g/t Ag (1,384 g/t AgEq) over 4.5m, including 58.3 g/t Au and 1,923 g/t Ag (6,004 g(t AgEq) over 1m, and other interval with 1.37 g/t Au and 40 g/t Ag (136 g/t AgEq) over 9m. Phase II will consists of 5,000m in approximately 20 holes.
  • Aztec Minerals Corp., provided a 2020 outlook for its Cervantes project in Sonora. It plans to finalize the JV agreement with Kootenay in January 2020, and secure a senior partner to conduct an aggressive exploration program to advance both near surface oxide Au mineralization and deeper porphyry Au-Cu targets.
  • Radius Gold Inc., announced results from the recently completed third phase of drilling from its Amalia project in Chihuahua. Significant results were encountered in hole AM-DD19-18 with 12.5 g/t Au and 2,320 g/t Ag over 1.3m, and 1.4 g/t Au over 13.7m; and hole AM-DD19-19 with 0.5 g/t Au and 22 g/t Ag over 7.4m. Holes AM-DD19-20 and 21 only encountered anomalous Au-Ag values at the San Pedro fault. Radius reported that it has signed a binding agreement to acquire the 800 Ha Palmillas property from a private family which hosts high-grade epithermal Au-Ag mineralization and is adjacent to Amalia project.
  • Vizsla Resources Corp., discovered a new high grade vein at its Panuco property in Sinaloa. This vein consists of crystalline quartz with disseminated argentite and pyrite hosted in a strongly weathered and demagnetized diorite. Sampling on this 500m long vein returned 3.07g/t Au and 312 g/t Ag (557 g/t AgEq over 3.4m; 1.34 g/t Au and 263 g/t Ag (370 g/t AgEq) over 0.7m; and 0.5 g/t Au and 107 g/t Ag (147 g/t AgEq) over 1.1m. Vizsla plans to drill this recently discovered vein in late January/early February as one of the twenty targets that will be drilled throughout 2020.
  • Advance Gold Corp., commenced the third phase geophysical survey at its Tabasquena project in Zacatecas to delineate a new chargeability anomaly identified on the most southerly of the reconnaissance lines from the second phase survey, and to do a long NW-SE line cross cutting all of the previous E-W survey lines to obtain a much deeper penetration. This new survey will consist of nine E-W lines of 1,000m long, with line spacing of 120m, and one line NW-SE of 4,000m long.

ON MINING

  • Alamos Gold Inc., commenced operation at its satellite mine Cerro Pelon, located 3km from its Mulatos mining unit in Sonora. The new open pit mine, whose current life is three years, has a capacity of 4,500 tons per day, has an independent crushing train and the material is deposited in the Mulatos mine yards, taking advantage of the existing mining infrastructure and avoiding more capital costs.
  • Torex Gold Resources Inc., announced that it expects to produce between 420K to 480K Oz Au in 2020, at a total cost per Oz Au sold of USD $640-$670, and AISC of USD $900-$960 per Oz Au sold.
  • Great Panther Mining Limited, reported Q4 and full year 2019 production and financial results from their Mexican operations. At Topia mine, Durango, the company processed in Q4, 2019, 18,854 tonnes with grades of 0.81 g/t Au and 424 g/t Ag for a total of 267 Oz Au, 242.8K Oz Ag, 1.09M Lb Pb, and 1.45M Lb Zn (449.6K Oz AgEq), that brings a total of 79,257 tonnes processed in the full year 2019, with grades of 0.94 g/t Au and 392 g/t Ag for a total of 1,344 Oz Au, 938.6K Oz Ag, 4.39M Lb Pb, and 5.77M Lb Zn (1.78M Oz AgEq). At Guanajuato mine complex, the company processed in Q4, 2019 a total of 48,710 tonnes with grades of 2 g/t Au and 136 g/t Ag for a total of 2,640 Oz Au and 180.5K Oz Ag (394.6K Oz AgEq), that brings a total of 187,610 tonnes processed in the full year 2019 with grades of 2.26 g/t Au and 116 g/t Ag for a total of 11,588 Oz Au and 590.8K Oz Ag (1.5M Oz AgEq).
  • GoGold Resources Inc., announced Q4, 2019 production results from its Parral Tailings project in Chihuahua. The company produced 2,407 Oz Au and 379K Oz Ag (585K Oz AgEq).
  • McEwen Mining Inc., reported that its El Gallo mine in Sinaloa produced in 2019 a total of 16,333Oz AuEq from residual leaching of the heap leach pad.
  • Fortuna Silver Mines Inc., announced Q4 and full year 2019 production results from its San Jose mine in Oaxaca. It processed 273,066 tonnes of 1.5 g/t Au and 249 g/t Ag to produce a total of 12K Oz Au and 2M Oz Ag. In the full year 2019, the company processed 1,068,722 tonnes of 1.57 g/t Au and 252 g/t Ag to produce 48.9K Oz Au and 7.9M Oz Ag.
  • Avino Silver & Gold Mines Ltd., reported Q4, and full year 2019 production results from its Avino mine in Durango, including Avino, San Gonzalo and stockpiles. During the Q4 period, it processed 188,436 tonnes of 0.47 g/t Au, 51 g/t Ag, and 0.43% Cu to produce 2,032 Oz Au, 220.8K Oz Ag, and 1.39M Lb Cu (608.6K Oz AgEq). In the full year 2019, the company processed 789,660 tonnes of 0.41 g/t Au, 54 g/t Ag, and 0.4%Cu to produce 6,912 Oz Au, 958.8 Oz Ag, and 4.97M Lb Cu (2.4M Oz AgEq).
  • Coeur Mining Inc., announced Q4 and full year 2019 production and financial results from its Palmarejo mine in Chihuahua. In the period Q4, it milled 486,779 tonnes of 2.25 g/t Au and 159 g/ Ag for a total of 28.7K Oz Au and 2M Oz Ag at an average realized price per Oz Au and Ag of $1,238 and $17.28 respectively. For the full year 2019, the company milled 1,755,957 tonnes of 2.49 g/t Au and 151 g/t Ag to produce a total of 111.9K Oz Au and 6.76M Oz Ag at an average realized price per Oz Au and Ag of $1,220 and $16.23 respectively.

ON FINANCING

  • Minera Alamos Inc., closed a private placement with Osisko Gold Royalties Ltd., for gross proceeds of $6M. With this, Osisko has increased its shareholding of the company´s common share from 12.3% to 18.7%. Net proceeds will be used for building its Santana mine in Sonora.

ON RESOURCES AND DEVELOPMENT

  •  Starcore International Mines Ltd., staked two new claims near its San Martin Mine in Queretaro with upside potential for exploration and development. These two new claims are located to the west of the current mineral rights of the mine and cover approximately 710 Ha. The company will release an exploration plan for the first part of 2020.
  • Prime Mining Corp., retained a consulting company to complete a 43-101 compliant technical report that includes a n estimate of the Au and Ag resources for its Los Reyes mine in Sinaloa. Prime geologists have prepared a database of 493 historic drill holes to establish a new 43-101 compliant in-pit resource. The company expects to expands the size of the indicated resource presented by the former owner of 380.1K Oz Au at a grade of 1.73 g/t Au and inferred resources of 155.2K Oz Au at a grade of 1.49 g/t Au, and Ag resources of 6.3M indicated Oz Ag at a grade of 29 g/t Ag, and 3.6M inferred Oz Ag at a grade of 35 g/t Ag.
  • Capstone Mining Corp., presented drilling results from 6 expansion holes and 21 infill holes collared at its Cozamin mine in Zacatecas. This brings the total drilled to date to 150 holes of a 200 hole program, aiming to double the current reserve base. Significant drill intercepts were encountered in hole CG-19-S445 (step out) with 5.31% Cu, 0.15% Zn, and 79 g(t Ag over a true width of 6.3m, including 9.8% Cu, 0.26% Zn, and 139 g/t Ag over 2.8m; hole CG-19-S443 (step out) with 4.95% Cu, 0.15% Zn, and 104 g/t Ag; hole CG-19-S436 with 6.13% Cu, 0.24% Zn, and 98 g/t Ag over a true width of 1.7m; hole CG-19-S441(step out) with 3.35% Cu, 0.34% Zn, and 62 g/t Ag over a true width of 5.4m; hole CG-10-S455 (infill) with 7.65% Cu, 0.35%Zn, and 141 g/t Ag over a true width of 5.4m; hole CG-19-S437 (infill) with 1.94% Cu, 0.15% Zn and 45 g/t Ag over a true width of 19.3m, including 5.9% Cu, 0.33% Zn, and 134 g/t Ag over a true width of 2.80m; hole CG-19-S440 (infill) with 8.29% Cu, 0.25%Zn, and 133 g/t Ag over a true width of 4.9m, including 10.75% Cu, 0.32% Zn, and 166 g/t Ag over a true width of 3.4M; and hole CG-19-S444 (infill) with 3.31% Cu, 0.11% Zn, and 82 g/t Ag over a true width of 11.8m, including 7.89% Cu, 0.2%Zn, and 198 g/t Ag over a true width of 3.7m.
  • Torex Gold Resources Inc., announced an updated resource estimate for its Media Luna project in Guerrero. It reported an indicated resource of 12.6M tonnes of 3.27 g/t Au, 38 g/t Ag, and 1.16% Cu for a total of 1.32 M Oz Au, 15.3M Ag, and 322M Lb Cu (2.24M Oz Au Eq at a grade of 5.5 g/t AuEq). Inferred resources are 33.5M tonnes of 2.49 g/t Au, 24 g/t Ag, and 0.93% Cu for a total of 2.68M Oz Au, 25.5M Oz Ag, and 686M Lb Cu (4.56M Oz AuEq at a grade of 4.23 g/t AuEq).
  • SilverCrest Metals Inc., announced it plans to release in Q1, 2020 in-fill and expansion drill results from Babi Sur, Babi Vista Discover, Babicanora Norte, Babicanora, Babicanora FW, and Area 118 Discovery veins. Drill results will be incorporated into the updated resource to be released in the FS in H1, 2020. SilverCrest plans to conduct a 125,000m of exploration drill program focused on expanding measured and indicated resources to be considered for inclusion in the initial reserve estimate with the FS. In anticipation of a positive construction decision based on the FS, and the approval from the government of the change of use of soil permit, the company will commence to construct offices, warehousing, water works, and roads access improvements in H1.
  • Minera Alamos Inc., commenced the construction of its Santana mine in Sonora. It plans to provide construction updates during the 6-8 months construction period. During January and February, the company along with members of the community will begin to prepare the areas designed for the leach pads and holding pods, as well as initiate road construction within the planned mine area.
  • Southern Silver Exploration Corp., announced that the metallurgical tests work at its Cerro Las Minitas project in Durango confirmed that a marketable Cu, Pb, and Zn concentrate can be produce, increasing its value compared with earlier batch testing. These results are highlighted by a 94.7% Zn recovery grading 54.0% Zn in the Zn concentrate and grades of 5,504g/t Ag and 65.1% Pb in the Pb concentrate. Ag strongly partitions into the Pb and Cu concentrates for a combined 83.8% Ag recovery into concentrates that traditionally receive favourable payable terms.

ON DEALS AND CORPORATE ISSUES

  • Sonoro Metals Corp., granted stock options to certain directors, officers and consultants of the company to purchase an aggregate of 3,040,000 common shares.
  • Radius Gold Inc., reported that it has signed a binding agreement to acquire the 800 Ha Palmillas property from a private family which hosts high-grade epithermal Au-Ag mineralization and is adjacent to Amalia project in Chihuahua. During due diligence evaluation, Radius sampled outcrops and old adits obtaining encouraging results, such as 9.5 g/t Au and 73 g/t Ag over 4m, and 1.54 g/t Au and 58 g/t Ag over 10.5m. The company can earn a 100% interest in the Palmillas property by making staged payments over a period of five years for a total USD $350K, of which USD $200K is a final payment at the end of five years.

ON SOCIAL RESPONSIBILITY

  • With an investment of MXP $9M, and a direct benefit for 1,200 residents of the area, Governor of Durango, José Rosas Aispuro Torres, delivered road infrastructure works, in compliance with one more commitment to the inhabitants of Tepehuanes. The state executive said that this is a work that was carried out thanks to the resource of the Mining Fund, which made it possible to build eight thousand square meters of pavement with hydraulic concrete, directly benefiting the inhabitants of four colonies of the Municipal head.
  • The Peñoles Community Center, will give a new human development workshop. It also announced that another of the Peñoles Community Center workshops with the highest demand is that of teaching English, which students attend to receive instruction three days a week in both morning and evening hours.

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, an epithermal quartz vein displaying boiling textures in a prospect in Zacatecas, Mexico.  Photo by Miguel A Heredia.

Radius Gold reports results from the third phase of drilling at Amalia highgrade gold silver discovery, and acquires the adjoining 800 ha Palmillas Property

RadiusGold_14012020

Vancouver, Canada: Radius Gold Inc. (TSX-V: RDU) is pleased to report that the phase three diamond drill program at its Amalia Gold-Silver Project in Chihuahua, Mexico has been completed. The high-grade mineralized shoot discovered at Amalia in December 2018 has been extended at depth and remains open to expansion. Defining its extents and new high-grade shoots will be the goal of phase four drilling. Pan American Silver Corp., the project operator, has provided final assay results including intervals of 23 m at 4.61 g/t Au and 41 g/t Ag (AMDD19-016), 1.3 m at 12.5 g.t Au and 2320 g/t Ag and 13.7 m at 1.39 g/t Au and 22 g/t Ag. Radius is also pleased to announce that it has acquired an option to acquire the adjacent 800-hectare Palmillas Property which hosts high-grade epithermal silver-gold mineralization, outcropping 1.8 km north west along strike from the reported drilling at Amalia.

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

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By Jorge Cirett

During the 2nd week of the year (January 6th to January 12th, 2020), at least 34 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, The IPN is to offer Metallurgy Engineering at the Zacatecas campus. Conagua and Minera Peñasquito reached an agreement to promote the recovery of the Mazapil aquifer in Zacatecas. Some highlights on three major Mexican ore deposits were shared by Camimex: Metates, El Arco and La Verde. The Mexican president, Andrés Manuel López Obrador asserted the importance of mining in Mexico. In 2019 three Peñoles, Autlán and Frisco lost US$935 M in value on the stock exchange (BMV). Torex Gold and Leagold increased gold production on its mines in Guerrero. ON EXPLORATION, setting a weekly record, that we hope is a good omen for the industry in Mexico this year, eleven companies reported on exploration programs or results on their projects. In Sonora, Colibri disclosed surface sampling results from the Evelyin project; Tocvan and Colibri reported high Au and Ag values from the Pilar project near Suaqui Grande; Magna Gold released high grade Au results from surface mapping on several targets at the San Judas project. In Chihuahua, Kootenay Silver released high-grade Ag results from its Columba project. Sable Resources released low  grade but widespread Au results from the Vinata project. In Sinaloa, Vizsla Resources started drilling at its Pánuco project. In Durango, Gainey Capital has had successful meetings and communication with the local communities at Las Margaritas project. In Jalisco, GoGold Resources released results from five more holes at Los Ricos.  In Zacatecas, Pan American Silver is to continue the exploration, initial engineering and metallurgical tests at the La Colorada skarn ore deposit. Advance Gold commenced another drill hole at La Tabasqueña project. Alien Metals is submitting applications to drill its Los Campos and San Celso projects. ON MINING, US Antimony has begun production testing of the cyanide leach circuits at the Puerto Blanco mill in Guanajuato. Hecla Mining, Torex Gold, Leagold Mining and Endeavour Silver presented fourth quarter and full-year 2019 reports. Argonaut Gold informed its El Castillo mine in Durango is to cease operations in 2022. ON FINANCING, Silver Spruce closed the first tranche of a financing round. Agnico Eagle issued warrants in connection with the loan agreement with Orla Mining. Sierra Metals is to repurchase US$30 M of shares. ON RESOURCES AND DEVELOPMENT, Prime Mining updated on work at Guadalupe de Los Reyes, in Sinaloa. Sierra Metals updated the mineral resource estimate for the Bolivar mine, in Chihuahua. Discovery Metals released some high-grade results from its current drill program at Cordero, Chihuahua, where it is aiming to enhance the high-grade component of the deposit. Azure Minerals recommenced RC drilling the Loma Bonita gold deposit at its Alacrán project in Sonora.  ON DEALS AND CORPORATE ISSUES, Goldplay signed a LOI with First Majestic to acquire the Plomosas property in Sinaloa. Goldplay is to change name to GR Silver Mining. Oroco Resource Corp. is now officially the owner of 56.7% net interest (that can be increased to 81%) on the core concessions of the Santo Tomás project in Sinaloa. The company also holds the rights to 77.5% of the concessions surrounding the said core. ON SOCIAL RESPONSIBILITY. Peñoles to aid on the reactivation of agriculture in Naica. Peñoles organizes a robot building contest in Torreón. Endeavour Silver summarized its sustainability work for 2019.

ON MEXICO ISSUES

  • The Instituto Politécnico Nacional (IPN) is to offer the Metallurgy Engineering at its Zacatecas campus. Students are to spend one week of every month gaining experience on local mining units, from the third semester onward.
  • Conagua (Water Use Agency) and Minera Peñasquito (Newmont Goldcorp) reached an agreement to promote the recovery of the Mazapil aquifer. The agreement was reached in negotiation tables with several parties. The company is to forfeit its rights to extract 5 M cubic meters of water. During 2020 and 2021 Minera Peñasquito will invest 100 M pesos (US$5.25 M) on water access, drainage and cleaning in town, as well to aid on the bettering of irrigation and promotion of water re-usage in agriculture. In 2023 the company will also cede another 4 M cubic meters of water.
  • Highlights on three giant mining projects in Mexico: Metates, in Durango, holds reserves for 18.3 M Oz Au, 502 M Oz Ag, 4 B Lb Zn. Chesapeake’s 2016 pre-feasibility study (PFS) calls for a capital spending of $3.5 billion for a 90 K tonnes per day (tpd) operation, and a mine life of 27 years producing 445 K Oz Au. Sustained prices over $1,400 per gold ounce would help to kick start the operations. El Arco, in Baja California, is a giant copper deposit owned by Grupo Mexico. The deposit displays reserves of 2,700 M tonnes @ 0.4% Cu, 0.1 gpt Au. The deposit is to be mined by open pit, with concentrator and leaching operations to recover copper by electro winning, and is expected to produce 190 K tonnes Cu and 105 K Oz Au per year, once it is developed. La Verde, in Michoacan, owned by Solaris Resources and Teck, had a preliminary evaluation assessment (PEA) in 2018 with an investment of US$1.16 billion to produce 7.17 M tonnes of concentrate @ 26.7% Cu for 19 years, or 100 K tonnes Cu per year.
  • The Mexican president, Andrés Manuel López Obrador asserted the importance of mining in Mexico, on the strengthening of the country’s economy and the strong employment generation. He pointed that the ministers of environment and health are looking into the Rio Sonora spill (2014) and its consequences on the area inhabitants.
  • During 2019, mining companies like Industrias Peñoles, Autlán and Minera Frisco lost US$935 M in market cap on the Mexican Stock Exchange (Bolsa Mexicana de Valores, or BMV). The three companies saw a reduction on its operations, same that were reflected on its cash flow (EBITDA) and share price. During the year Peñoles lost US$861.4 M, Autlán US$39.8 M and Frisco US$34 M in value. On the other hand, Grupo Mexico registered an increment of US$4.617 billion on its value for the same period, due to good results on copper extraction and the expansion on its transport branch.
  • Gold production increased in 2019 for Torex and Leagold in Guerrero. In 2019 Torex produced 454,810 Oz Au at its El Limon-Guajes mine in Guerrero, compared with 354,000 Oz Au produced in 2018. Leagold produced 200,856 Oz Au at its Los Filos mine, in the same region.

ON EXPLORATION

  • Pan American Silver Corp. is planning to continue the exploration program, initial engineering and more metallurgical tests at the world class skarn mineralization discovered at La Colorada, Zacatecas. The inferred resources stand at 72.5 M tonnes @ 44 gpt Ag, 0.17% Cu, 2.0% Pb, 4.4% Zn, with the deposit open in several directions. In 2020 PAS is to drill 44,000 m to define and expand the inferred resources.
  • Colibri Resource Corp. disclosed rock chip sample results from its Evelyn project in Sonora. Highlighted results include 0.75 m @ 14.45 gpt Au, 16 gpt Ag; 1.5 m @ 12.45 gpt Au, 3 gpt Ag; 1.5 m @ 8.6 gpt Au, 5 gpt Ag; chip samples @ 22.3 gpt Au, 28 gpt Ag; 40.1 gpt Au; 3.12 gpt Au at the Cerro Rojo corridor and 2.97 gpt Au; 0.5 gpt Au, 0.4 gpt Au, 0.46 gpt Au; 2.74 gpt Au, 73 gpt Ag at the El Sahuaro corridor. Colibri is now planing to pursue a 1,000 m drilling campaign.
  • Advance Gold Corp. has commenced the second drill hole of the current drilling program at its Tabaqueña project in Zacatecas. This second hole is to test the large IP anomaly that underlies the intersection of 1.70 m @ 9.46 gpt of a previous drilling campaign. The second  hole on this campaign was collared 300 north of the location of the first one, with results pending. A second rig is being brought to the site to expedite drilling, now that the IP anomaly has been seen to correspond with a sulphide system.
  • GoGold Resources Inc. released results from five more drill holes at its Los Ricos project in Jalisco. Highlighted intersections include 22 m @ 0.22 gpt Au, 60 gpt Ag (1.01 gpt AuEq); 16.5 m @ 4.29 gpt Au, 336 gpt Ag (8.77 gpt AuEq); 5.2 m @ 1.10 gpt Au, 67 gpt Ag (2.01 gpt AuEq); 13.5 m @ 0.82 gpt Au, 215 gpt Ag (3.73 gpt AuEq); 17.4 m @ 0.77 gpt Au, 152 gpt Ag (2.80 gpt AuEq), including 6.1 m @ 2.07 gpt Au, 373 gpt Ag (7.05 gpt AuEq), 23.5 m @ 0.17 gpt Au, 43 gpt Ag (0.75 gpt AuEq). The holes were drilled north and south of the historical stopes to test the continuation of the structures.
  • Gainey Capital Corp, has had successful meetings and communication with the local communities at Las Margaritas project, Durango. “Discussions with State and Federal government representatives have been held to ensure that exploration on the property continues to the benefit of all stakeholders”.
  • Kootenay Silver Inc. released assay results from seven more drill holes completed at its Columba property in Chihuahua. Highlighted intervals comprise: 11.35 m @ 103 gpt Ag, including 2.28 m @ 405 gpt Ag; 23.0 m @ 60 gpt Ag, including 3.0 m @ 274 gpt Ag, including 1.35 m @ 494 gpt Ag; 7.05 m @ 114 gpt Ag, including 1.0 m @ 547 gpt Ag (the three intercepts in one hole); 10.0 m @ 175 gpt Ag, including 4.63 m @ 301 gpt Ag, including 1.5 m @ 628 gpt Ag; 4.9 m @ 194 gpt Ag, including 0.88 m @ 808 gpt Ag; 39.90 m @ 159 gpt Ag, including 7.45 m @ 650 gpt Ag and 1.15 m @ 919 gpt Ag, and 1.0 m @ 953 gpt Ag, and 1.0 m @ 527 gpt Ag, and 1.0 m @ 860 gpt Ag, and 1.8 m @ 715 gpt Ag. High Ag grades have been intercepted over 700 m of strike length on the F vein, and also 650 m from old workings on the B vein.
  • Sable Resources Ltd. provided an update on the ongoing drilling campaign at its Vinata property in Chihuahua. Six drill holes have been completed, amounting to 1,753 m of core, with results for 530 samples on the first five holes. Highlighted results comprise 51.3 m @ 0.28 gpt Au, including 30.3 m @ 0.44 gpt Au; 61.8 m @ 0.079 gpt Au, including 12.4 m @ 0.24 gpt Au; 198.25 m @ 0.063 gpt Au, including 8.9 m @ 0.24 gpt Au and 22.1 m @ 0.11 gpt Au; 30.45 m @ 0.035 gpt Au. Low grade gold argillic stratabound alteration in volcanic rocks is open in every direction, except to the East. The drilling program has been increased from 2,000 to 4,000 m to define the limits and grade on the argillic alteration, and also for the existence of a high-grade feeder with more classical epithermal textures.
  • Tocvan Ventures Corp. and Colibri Resource Corp. reported high Au and Ag values from two new showings that extend known mineralization at its Pilar project in Sonora. Highlighted results comprise 4.3 gpt Au, 172 gpt Ag, 1.1% Pb; 23.7 gpt Au, 116 gpt Ag; 4.4 gpt Au, 44 gpt Ag; 7.5 gpt Au, 42 gpt Ag; 0.5 gpt Au, 323 gpt Ag; 1.4 gpt Au, 2 gpt Ag; 2.2 gpt Au, 15 gpt Ag; 5.6 gpt Au, 84 gpt Ag, 1.7% Pb; 0.7 gpt Au, 20 gpt Ag; 9.3 gpt Au, 76 gpt Ag, 2.2% Pb. The new assays support additional areas to develop and define mineralization east and south east of the main areas that have seen over 17,700 m of drilling.
  • Alien Metals Ltd. is submitting applications for drill permits at its Los Campos and San Celso projects in Zacatecas. At Los Campos a six hole program that could grow to 47 holes and 3,250 m of drilling is planned. At San Celso a grid based drilling plan has been designed, with a total of up to 30 drill holes for 2,550 m, aiming to start with four to six key holes.
  • Magna Gold Corp. reported assay results from surface sampling at its San Judas project in Sonora. Several targets have been delineated: Santa Lucia-Las Palomas is a bulk mining target in sheared granite with quartz veins and stockworks, on which samples returned up to 0.5 m @ 26.4 gpt Au, 1.5 m @ 14.6 gpt Au, 0.7 m @ 12.9 gpt Au, 0.8 m @ 7.3 gpt Au, 1.0 m @ 6.14 gpt Au, 0.8 m @ 5.54 gpt Au; At San Martin there is a quartz stockwork in granite and gneiss that opens the possibility to a high volume bulk deposit, in an area 1,250 m x 750 m, on which samples returned up to 1.5 m @ 13.7 gpt Au, 2.0 m @ 9.20 gpt Au, 1.0 m @ 7.12 gpt Au, 1.0 m @ 6.7 gpt Au, 1.0 m @ 6.23 gpt Au, 2.0 m @ 5.16 gpt Au, 1.9 m @ 4.1 gpt Au; Represo Seco displays a high-grade sheeted and brecciated quartz system with three generations of quartz, two meters thick and exposed over 65 m, where samples returned up to 0.5 m @ 7.4 gpt Au, 1.9 m @ 6.0 gpt Au, 1.8 m @ 5.1 gpt Au; Cueva del León hosts argillic altered intrusive felsic rocks, with assays of up to 1.1 m @ 4.99 gpt Au, 1.0 m @ 4.28 gpt Au, 1.2 m @ 2.03 gpt Au, 1.5 m @ 1.9 gpt Au. All the areas are strongly anomalous in Pb (up to 1.45%), Zn (up to 0.35%) and Cu (up to 0.12%).
  • Vizsla Resources Corp. has started its drilling program at the Pánuco project in Sinaloa. The company plans to drill 14,500 m in 19 prospects, starting with the Vetas Animas corridor. Ten geologists are mapping and sampling in the district at the time being.

ON MINING

  • United Sates. Antimony Corp. reported that production testing of the cyanide leach circuit at the Puerto Blanco mill in Guanajuato has begun. “The Los Juarez mineralization is disseminated in jasperoid pipes that are present over a strike length of 3.5 kilometers, up to 1 kilometer in width, and are believed to be continuous below 400 meters”. “A global assay” of shallow drilling, sampling and mill testing is @ 1.09 gpt Au, 102 gpt Ag and 0.65% Sb (or 2.6 gpt AuEq), with individual assays of over 1 Oz/t Au, 47 Oz Ag/t and 10% Sb.
  • Hecla Mining Co. released preliminary results for the fourth quarter 2019, including figures from its Mexican operations. At the San Sebastian mine in Durango, 1.9 M Oz Ag, 15,673 Oz Au were produced during 2019, and 422.4 K Oz Ag,  3,897 Oz Au during the fourth quarter. With the Hugh Zone production included, AgEq production for the year is the same as 2018. The mill operated at an average of 479 tpd in 2019.
  • Torex Gold Resources Inc. announced 2019 production of 454,810 Oz Au (Q4 2019: 125,150 Oz) at El Limón Guajes mine in Guerrero. During the fourth quarter plant throughput averaged 12,120 tpd, with 1,060 tpd ore mined underground and 16,030 tpd ore mined by open pit, with a pit strip ratio of 7.3:1.
  • Leagold Mining Corp. reported 2019 production results, including figures from its operations in Mexico. At Los Filos, in Guerrero, quarterly production was 64,028, 44,896, 40,922 and 51,010 Oz Au for the Q1, Q2, Q3 and Q4 respectively, adding to 200,856 Oz Au in the year. The Los Filos Expansion Feasibility study was completed during the year, commencing expansion during the third quarter.
  • Argonaut Gold Inc. informed its mining unit El Castillo, in Durango, is to stop operations in 2022, after 12 year of work. These operations had $900 M of economic impact which includes investments, operation costs and $82 in taxes paid. To date the company has 347 employees and 249 contractors. Starting this month the crushing operations have been decommissioned, impacting on personnel numbers, and another reduction in the labor force will take place in April.
  • Endeavour Silver Corp. delivered production reports for the fourth quarter and full year 2019. Gold and silver production decreased 27% in the year, to 38,907 Oz Au, 4.02 M Oz Ag. The El Cubo mine suspended mining operations on Q4 2019, as reserves were exhausted. During the first quarter Endeavour plans to update the Pre-Feasibility Study (PFS) for Terronera, in Jalisco, and deliver an initial Preliminary Economic Assessment (PEA) in Parral, Chihuahua.Endeavour Prod 2019 Table1

ON FINANCING

  • Silver Spruce Resources Inc. closed the first tranche of its non-brokered financing on December 31, 2019, for gross proceeds of $237 K (Pino de Plata, Chihuahua).
  • Agnico Eagle Mines Ltd. announced the issuance of common share purchase warrants in connection with the loan agreement of December 2019 between Agnico and Orla Mining Ltd (Camino Rojo, Zacatecas).
  • Sierra Metals Inc. announced it has approved a plan to return up to US$30 M to shareholders. Sierra Metals intends to launch a substantial issuer bid pursuant to which the Company will offer to repurchase for cancellation up to US$15 M of its common shares from shareholders for cash (Bolivar and Cusi, Chihuahua).

ON RESOURCES AND DEVELOPMENT

  • Prime Mining Corp. updated on work at is Guadalupe de los Reyes project in Sinaloa, pointing its aim to become a gold producer. The acquisition was completed in August 2019, the due diligence concluded, a team was assembled, and an initial financing of CAD$8.7 M and USD$4.5 M of property payments were made, with only a payment of USD$1.5 M remaining, due October 2021. The long term land access agreement was signed and led to the implementation of 5,000 m of road cut and trenching that aided defining wider and longer structures than anticipated. The project is being evaluated at a mining rate of 4,500 tpd of mineralized material from five to seven pit locations, with Prime aiming to make the initial mining permitting submissions during 2020.
  • Sierra Metals Inc. updated the mineral resource estimate for its Bolivar mine in Chihuahua. The mineral resource update includes 13,698 m of infill drilling and 41,553 m of exploration drilling, with 11.63 M tonnes @ 0.95% Cu, 18 g/t Ag, and 0.24 g/t Au (or 1.16% CuEq) for a total of 244.3 M Lb Cu, 6.8 M Oz Ag, 90.4 K Oz Au (300.1 M Lb CuEq) as indicated resources, and 16.69 M tonnes @ 0.93% Cu, 17 g/t Ag, 0.30 g/t Au (or 1.16% CuEq) adding to 342.1 M Lb Cu, 9 M Oz Ag, 162.7 K Oz Au (428.1 M Lb CuEq) as inferred resources.
  • Discovery Metals Corp. announced results from the last four diamond drill holes at the Cordero project in Chihuahua. The program is designed to look for high grade and to test other areas of the 35,000 ha property. Highlighted intervals comprise: In hole 295, 81.82 m @ 63 gpt Ag, 0.35 gpt Au, 0.9% Pb, 0.9% Zn, including 4.1 m @ 517 gpt Ag, 1.32 gpt Au, 7.6% Pb, 5.7% Zn; 68.1 m @ 117 gpt Ag, 1.96 gpt Au, 1.7% Pb, 1.1% Zn, including 34.7 m @ 200 gpt Ag, 3.04 gpt Au, 2.9% Pb, 1.6% Zn, including 3.7 m @ 512 gpt Ag, 21.52 gpt Au, 6.9% Pb, 0.2% Zn; 11.5 m @ 284 gpt Ag, 0.88 gpt Au, 4.1% Pb, 2.8% Zn; In hole 296, 47.1 m @ 71 gpt Ag, 0.45 gpt Au, 1.0% Pb, 1.2% Zn; 61.6 m @ 42 gpt Ag, 0.39 gpt Au, 0.6% Pb, 0.4% Zn; in hole 294, 94.3 m @ 47 gpt Ag, 0.27 gpt Au, 0.7% Pb, 0.6% Zn; 10.8 m @ 93 gpt Ag, 0.46 gpt Au, 1.3% Pb, 1.2% Zn; in hole 293, 59.9 m @ 37 gpt Ag, 0.06 gpt Au, 0.9% Pb, 1.5% Zn; 4.3 m @ 111 gpt Ag, 0.10 gpt Au, 2.2% Pb, 2.9% Zn. “Discovery believes that definition of these veins has the potential to significantly enhance the high-grade component of the deposit”.
  • Azure Minerals Ltd. recommenced reverse circulation drilling (RC) at its Alacrán project in Sonora. The program is aimed at resource expansion of the Loma Bonita deposit, which currently extends for 600 m, and is up to 200 m in width and up to 100 m in depth. Early drilling is located east of two holes that intersected 47.2 m @ 2.79 gpt Au, 33, gpt Ag and 67.1 m @ 1.56 gpt Au, 23 gpt Ag. Drilling is also planned on Cerro San Simon, where previous drilling has intercepted up to 29.6 m @ 0.56 gpt Au, 27 gpt Ag; 12.6 m @ 0.37 gpt Au, 8 gpt Ag; 63.0 m @ 0.47 gpt Au, 27 gpt Ag.

ON DEALS AND CORPORATE ISSUES

  • Goldplay Exploration Ltd. entered into a non-binding Letter of Intent (LOI) with First Majestic Silver Corp. to acquire the 8,514 ha Plomosas silver project in Sinaloa. The terms of the transaction are expected to include a $100 K cash payment to First Majestic and a 2% NSR royalty to First Majestic, with 1% of the NSR subject to a buyback option for $1 M, and the issuance of 19.9% of the total issued common shares of Goldplay. In December 2019 Goldplay announced another LOI with Mako Mining Corp. on a significant land position in the region (San Marcial, Sinaloa).
  • Goldplay Exploration Ltd. announced name change to GR Silver Mining Ltd., effective January 13, 2020 (San Marcial, Sinaloa).
  • Oroco Resource Corp. registered at the Public Registry of Mining (Registro Público de Minería) the transfer of the seven core concessions of the Santo Tomás copper porphyry project to Xochipala Gold, S.A. de C.V., which is now the registered holder of 100% interest on these concessions. Oroco “holds an irrevocable option to acquire, via the ownership of Altamura Copper Corp., a net 56.7% interest in the collective 1,172.9 ha seven core concessions of the Santo Tomás Project in NW Mexico, and may increase that majority interest up to a net 81.0% interest with project investment of up to CAD$30 million”. The company also holds a 77.5% interest in 7,807.9 ha of mining concessions surrounding the previously mentioned core claims.

ON SOCIAL RESPONSIBILITY

  • Peñoles open to support the reactivation of agriculture in Naica, directly cooperating with the Naica ejido (communal land) by providing the pumping equipment and its maintenance. The water is to be extracted from the Naica mine, in care and maintenance for the last five years.
  • Peñoles organizes a robot building contest (FIRST robotics competition), supporting more than 1,500 students. The event is to take place in the Instituto Tecnologico de Monterrey, on the Torreon Campus.
  • Endeavour Silver summarized its sustainability work for 2019, which includes: 1) Guanacevi, Bolañitos and El Cubo received the annual “Socially Responsible Company” distinction from CEMEFI (Mexican Philanthropy Center); 2) Ceased operations at the El Cubo Mine in a collaborative manner with the employees, provided a social plan to mitigate risks and addressed community concerns resulting from the suspension of mining operations. 3) Made community donations including a recreational sports facility at El Cubo and partnered with the local Municipal Government to open a cultural community center at Bolañitos. 4) Carried out a Social Impact Study at Parral to identify and address important issues to the local community. 5) Continued to engage with the surrounding communities of the Terronera Project including San Sebastian Del Oeste, San Felipe De Hijar, and Santiago De Pinos, and hosted multiple events and programs during 2019 to which over 1,000 locals attended. 6) Invested in its scholarship program at Guanacevi, Bolañitos and El Cubo, benefitting over 100 students from high school and university levels. 7) The Company planted 52,000 trees to reclaim disturbed ground at all its mines and projects.

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: sheeted quartz veining in an orogenic gold system of Oaxaca. Picture by Jorge Cirett.

IMG_0812

The Mining and Exploration News in Mexico: Highlights on the Third Week of December, 2019.

Phyllic alteration

By Miguel A Heredia

During the fifty-one week of the year (December 16th to December 22th, 2019), at least 28 press releases were announced by companies working in Mexico, with nine announcing financial rounds, seven disclosing deals and corporate issues, five discussing social issues, four reporting on resources and developments of their properties, two communicating production and financial results, and one commenting on Mexican issues.  ON MEXICO ISSUES, Mexico mining production showed signs of recovery. ON EXPLORATION, no relevant news. ON MINING, Starcore presented production and financial results for the second quarter ended October31, 2019 from its San Martin mine in Queretaro. Premier provided a year end operations update (Mercedes mine, Sonora).  ON FINANCING, Defiance extended its loan until December 21, 2020 for a balance of $1.2 M (San Acacio project, Zacatecas). Alamos Gold announced renewal of a normal course issuer bid, and an increase of a credit facility from USD $400M to USD $500M (Mulatos mine, Sonora). Orla finalized a credit agreement for USD $125M for the development of its Camino Rojo project in Zacatecas. First Mining closed a non-brokered flow-through equity financing for $2M (San Ricardo project, Sonora).  SilverCrest closed a CAD $92M bought deal financing, including CAD $12M over allotment option exercised in full (Las Chispas project, Sonora). Golden Minerals sold two non-strategies Mexican exploration properties to Industrias Peñoles for $3M. Mexus paid off two loan agreements which were coming due (Santa Elena mine, Sonora). Mithril announced its plan to raise up to A$4.9M by way of an entitlement issue to shareholders (Copalquin project, Durango). ON RESOURCES AND DEVELOPMENT, Argonaut presented a positive PFS for its Cerro Del Gallo project in Guanajuato, and increased company´s mineral reserves by 48%. Coeur provided an update on its exploration program at Palmarejo mine in Chihuahua. Azure commenced a 7,000m RC resource expansion drilling at its Loma Bonita deposit in Sonora. Industrias Peñoles commenced extraction and grinding tests at its Capela mine (former Rey de Plata mine) in Teloloapan, Guerrero. ON DEALS AND CORPORATE ISSUES, Discovery Metals announced the appointment of its new VP of Corporate Development and Investor Relations (Cordero project, Chihuahua). Equinox Gold and Leagold entered into a definitive agreement to combine in an at-market merge (Los Filos mine, Guerrero). Goldplay entered into a letter of intent agreement with Mako Mining Corp., to acquire 100% of the shares of Marlin Gold Mining Ltd. (San Marcial project, Sinaloa). Oroco presented results from its special annual general meeting for shareholders (Santo Tomás project, Sinaloa). Prize Mining announced the resignation of its CEO and the appointment of its replacement (Manto Negro project, Coahuila).   Mithril entered into an exclusive option agreement to acquire all the issued share capital of Sun Minerals Pty Ltd., which holds an exclusive option to earn up to 100% interest in the high grade Copalquin Au & Ag project in Durango.    ON SOCIAL RESPONSIBILITY, Zacatecas Mining Cluster held its second Talent Meeting with participation greater than the 30 people who previously registered to participate in the event. Ladies Committee of the AIMMGM and Outlet Minero promoted the environmental education in Zacatecas. Grupo Mexico participated in the conference of preventive culture in San Luis Potosi. Minera Peñasquito held Christmas celebration in Mazapil, Zacatecas. It also informed about the progress of the social programs that the mining company performs in the 25 communities of direct influence.

 ON MEXICO ISSUES

  • Mexico mining production, showed signs of recovery, at a time when companies move forward with their efforts to face the problems that hinder operations in a series of large mines. General production increased 1.0% in October compared to the same month last year, led by increases in Pb, Zn, and Ag, according to the INEGI statistics agency. The October increase was largely due to the improvement experienced by three metals. Pb production increased 22.7% to 26.1M Lb, Zn production rose to 12.2% to 78.5M Lb, and Ag production rose to 11.6% to 10.3M Oz. The hike occurs despite a major disruption during October at the Peñasquito mine in Zacatecas, one of Mexico’s largest producers of Au, Ag, Pb, and Zn.

ON EXPLORATION

  • No relevant news.

ON MINING

  • Starcore International Mines Ltd., presented production and financial results for the second quarter ended October 31, 2019 from its San Martin mine in Queretaro. It milled 54,100 tonnes of 1.78 g/t Au and 34 g/t Ag to produce 2,700 Oz Au and 31.1K Oz Ag (3,100 Oz AuEq), at a cash cost of USD $71 per tonne milled or USD $1,259 per Oz AuEq, and AISC of USD $1,527 per Oz AuEq Starcore had Au & Ag sales of CAD $ 5.8M, a loss of CAD $1.1M, or CAD $0.02 per share, and an EBITDA of (CAD $342) for the six months period ended October 31, 2019.
  • Premier Gold Mines Limited, provided a year-end operations update. The company reported that the successful 2019 drill campaign resulted in the discovery of higher-grade zones located near existing mine workings, and plans are emplaced to benefit from them. Also, it plans to enter in identified near-mine areas in the Lupita extension and Marianas in order to multiple the numbers of headings and stopes, allowing for more flexibility and increased production. At the end of Q3, 2019, year-to-date mine production totaled 47.6K Oz Au and 146.5K Oz Ag, with total co-product cash costs of $973 per Oz Au and co-product AISC of $1,226 per Oz Au.

ON FINANCING

  • Defiance Silver Corp, announced that it has extended the loan for an additional year until December 21, 2020, with a reduction of $500K. The balance on extension is $1.2M at a rate of 10% per year (San Acacio project, Zacatecas).
  • Alamos Gold Inc., announced its intention to make a normal course issuer bid permitting Alamos to purchase for cancellation up to 28.7M class A common shares, representing 10% of the company´s public float of the common shares as of December 11, 2019, being 287.3M common shares issued and outstanding. The price for any repurchased common shares will be the prevailing market price at the time of the purchase. All common shares purchased by Alamos will be cancelled. In addition, the company increased the size of a credit facility from USD $400M to USD $500M on more favourable terms. “The increase in our facility on more attractive terms is a reflection of the increased scale of Alamos as well as our strong operating and financial outlook. Combined with our existing cash, this further strengthens our financial flexibility with no debt and nearly US$700 million of available liquidity,” said Jamie Porter, Chief Financial Officer (Mulatos mine, Sonora).
  • Orla Mining Ltd., finalized a credit agreement for USD $125M for the development of its Camino Rojo project in Zacatecas. The credit comprises three tranches: an initial tranche for USD $25 M once the agreement is closed and two subsequent tranches for USD $50M each available once Orla satisfies certain conditions, including the receipt of key permits required for the development of Camino Rojo. After the closing of the credit facility, the board of directors has approved the start of construction spending at Camino Rojo, allowing the continuation of detailed engineering and the ordering of long lead items, such as the crushing system. Commencement of project construction has also been approved, subject to receipt of all required permits. By the way, SEMARNAT has granted to Orla the approval of the change of land use permit, one of the two key permits required for the development of its project.
  • First Mining Gold Corp., closed a non-brokered flow-through equity financing for $2M. Gross proceeds will be used to fund exploration programs of their mining properties (San Ricardo project, Sonora).
  • SilverCrest Metals Inc., closed a CAD $92M bought deal financing, including CAD $12M over allotment option exercised in full. Gross proceeds will be used to continue the exploration and development of its Las Chispas project in Sonora.
  • Golden Minerals Company, sold two non-strategies Mexican exploration properties to Industrias Peñoles for $3M. The Mogotes and Pistachon properties are located near the Velardeña mine in Durango. None of the claims contain any identified mineral resources. The cash received will be used to advance key exploration projects in Mexico and Nevada.
  • Mexus Gold US, paid off two loan agreement which were coming due. The company does not have the funds to hire additional crew to run all aspects of the mine continuously, so it is seeking the necessary funds by selling a portion of its non-producing properties, selling equipment not needed at the mine site, and/or funding from its shareholder base. It also is considering selling a small royal interest in its Santa Elena mine in Sonora.
  • Mithril Resources Ltd., announced its plan to raise up to A$4.9M by way of an entitlement issue to shareholders. Net proceeds will be used to complete a drilling program at Copalquin project, Durango, and to continue work on the company´s existing projects.

ON RESOURCES AND DEVELOPMENT

  • Argonaut Gold Inc., presented a positive PFS for its Cerro Del Gallo project in Guanajuato. It increased company´s mineral reserves by 48%, and measured and indicated Au mineral resources by 36%. The project has 91,754,000 tonnes of 0.56 g/t Au, 13 g/t Ag, and 0.09% Cu to contain a total of 1.64M Oz Au, 39.1M Oz Ag, and 192.15M Lb Cu. Metallurgical recoveries are 60%, 53%, and 43% respectively. Cerro Del Gallo is a low-cost asset, with estimated cash cost of $597 per Oz Au sold and AISC of $677 per Oz Au sold. The project has an after-tax internal rate of return of $20% and a NPV at a 5% discount rate of $175M, assuming metal prices of $1,350 for Oz Au and $16.75 for Oz Ag. Argonaut plans to produce as an average 64K Oz Au, 1.3M Oz Ag, and 5.4M Lb Cu per year, and has estimated a life of mine of 15.5 years.
  • Coeur Mining Inc., provided an update on its exploration program carried out at its Palmarejo mine in Chihuahua, which has been focused on resource expansion drilling. Highlights from the 2019 drilling campaign at Palmarejo includes positive infill results at the western and southern portions of the Guadalupe mine complex, including hole DC3-ZPA-0010 with 12.8 g/t Au and 1,047 g/t Ag over 5.7m; new resource expansion intercepts from the northern portion of the Independencia mine complex, including hole VIDH-120, with 1.5 g/t Au and 179 g/t Ag over 9.3m; and new resource expansion intercepts from the northeastern most portion of the Independencia mine complex, with hole BVDH-039 with 1.1 g/t Au and 165 g(/t Ag over 5m. “Coeur’s geologic team also expanded its footprint in the district by mapping and sampling exposures of new veins southwest and northeast of the two underground mining complexes as well as new veins west and east of the legacy open pit mine. Coeur expects to seek drill permits for several new areas in 2020 based on positive surface trace-element geochemistry and alteration results”.
  • Azure Minerals Limited, commenced a 7,000m RC resource expansion drilling program at its Loma Bonita deposit in Sonora, where a channel sampling in a road returned 3.6 g/t Au over 35.5m. Alacran project includes Mesa de Plata and Loma Bonita deposits. Initial focus is on growing the Alacran Au & Ag resource of 32.2M Oz Ag and 150K Oz Au. Loma Bonita deposit is open for expansion in most directions with good drill intersections of Au including hole MDPC-131 with 2.8 g/t Au and 33 g/t Ag over 47m; hole MDPC-096 with 1.6 g/t Au and 21 g/t Ag over 67m; and hole MDPC-102 with 1.1 g/t Au and 89 g/t Ag over 44m. In addition, Azure is continuing to undertake reconnaissance and follow-up work throughout the Alacran project where first pass surface sampling of historical dumps returned high grades of Au-Ag and base metals with maximum values of 24.1 g/t Au, 3,675 g/t Ag, 33.5% Pb, 21% Zn, and 2.3% Cu.
  • Industrias Peñoles S.A.B.de C.V., commenced extraction and grinding tests at its Capela mine (former Rey de Plata mine) in Teloloapan, Guerrero. Capela mine is expected to begin operations in 2020 with a daily production of 4,500 tonnes per day. According to the general director of Industrias Peñoles, Fernando Alanís Ortega, the mine located in Teloloapan required an investment of USD $340M.

 ON DEALS AND CORPORATE ISSUES

  • Discovery Metals Corp., announced the appointment of its new VP of Corporate Development and Investor Relations (Cordero project, Chihuahua).
  • Equinox Gold Corp., and Leagold Mining Corporation, entered into a definitive agreement to combine in an at-market merge, creating one of the top Au producing companies operating entirely in the Americas. The combined entity will continue as Equinox Gold. “Pursuant to the Transaction, Leagold shareholders will receive 0.331 of an Equinox Gold share for each Leagold share held (the “Exchange Ratio”). This implies at-market consideration of C$2.70 per Leagold common share, using closing prices for both Equinox Gold and Leagold common shares on the Toronto Stock Exchange on December 13, 2019. At closing, existing Equinox Gold and Leagold shareholders will own approximately 55% and 45% of the merged company, respectively, on an issued share basis”. (Los Filos mine, Guerrero).
  • Goldplay Exploration Ltd., entered into a letter of intent (LOI) agreement with Mako Mining Corp. to acquire 100% of the shares of Marlin Gold Mining Ltd. (San Marcial project, Sinaloa). Marlin owns, amongst other assets, Oro Gold de Mexico, S.A. de C.V. , a Mexican company that owns the La Trinidad mine facilities, currently being decommissioned. Oro Gold also controls 100% of nine concessions totaling 104,094.5 ha located adjacent to Goldplay’s existing portfolio in the historic Rosario gold-silver Mining District, Sinaloa, Mexico. “Under the LOI, upon payment of $50K by Goldplay to Mako the parties have agreed to a binding exclusivity and non-solicitation period from the signing of the LOI until December 31, 2020, or such later date as the parties may agree, which is binding on the parties. Exclusivity will otherwise terminate on the early of the completion of the proposed acquisition or earlier termination of the LOI or the definitive agreement, as the case may be”. The terms of the transaction are subject to negotiation and will include a nominal cash payment to Mako and the issuance of a small NSR royalty to Mako on the concessions currently owned by Oro Gold. Goldplay will assume all remaining tax liabilities of Oro Gold.
  • Oroco Resource Corp., presented results from its special annual general meeting of shareholders (Santo Tomás project, Sinaloa).
  • Prize Mining Corporation, announced the resignation of its former CEO and the appointment of the new CEO (Manto Negro project, Coahuila).
  • Mithril Resources Limited, entered into an exclusive option agreement to acquire all the issued share capital of Sun Minerals Pty Ltd., which holds an exclusive option to earn up to 100% interest in the high grade Copalquin Au & Ag project in Durango. Copalquin contains 32 known historic Au and Ag underground mines including the La Soledad and El Refugio mines. Historic drilling highlights project’s exploration potential with multiple high-grade drill intercepts including hole UC-03 at el Cometa mine with 45.16 g/t Au and 118 g/t Ag over 17.77m; hole UC-024 at El Refugio mine with 6.54 g/t Au and 140 g/t Ag over 7.9m; and hole MP-07-101 with 28.99 g/t Au and 2,350 g/t Ag over 4.53m.

ON SOCIAL RESPONSIBILITY

  • The Zacatecas Mining Cluster (CLUSMING), held its second Talent Meeting with participation greater than the 30 people who previously registered to participate in the event. The goal of the Talent Meeting is to identify personnel with the skills and attitudes necessary for certain companies in the mining industry (mines and suppliers or contractors), and be part of a talent group that can be subsequently hired by companies, according to their profiles.
  • The Ladies Committee of AIMMGM and Outlet Minero, promoted the environmental education in Zacatecas. Attendees gave a brief talk to the groups about culture for sustainable development, highlighting the importance of carrying out actions such as recycling and reusing objects to make new creations at school and at home. Likewise, about the importance of mining and its presence in objects such as pencils, benches, blackboards, among others, that makes everyday life possible. In this context, the Outlet Minero team organized a Christmas tree contest made with recycling and reused material.
  • Grupo Mexico, promoted preventive measures against hydro metereologic phenomena in San Luis Potosi during the conference of preventive culture. Some emergency brigade collaborated in the event with five members, who gave prevention talks with the community of San Luis Potosí and made a demonstration with a fire truck and own safety equipment. SEMARNAT, Civil Protection, and San Luis Potosi Fire Department participated in this conference of preventive measures.
  • Minera Peñasquito, held Christmas celebration in Mazapil, Zacatecas, where the company distributed thousand of toys in 25 communities belonging to the mine´s area of influence. “Minera Peñasquito is not just about removing the ore, about removing the Au. The responsible mining that we want to do cannot work without working with the community. For us being part of the community is a priority, throughout the year, with social investment, entrepreneurship or infrastructure works. It’s fundamental, “said Nelson Núñez, sustainability manager at Newmont-Goldcorp”.
  • Minera Peñasquito, informed to the community leaders about the progress of the social programs that the mining company performs in the 25 communities of direct influence. Among the programs to be reported, the rehabilitation of houses in Nuevo Peñasco was highlighted in infrastructure, which benefited 22 people from that community, as well as maintenance of roads in Santa Rosa, Cuitláhuac, La Mejorada, Charcos, Cedros y Mesas, as well as the maintenance and operation of wells for human consumption in El Vergel and plants and wells in Mesas, Cedros y Charcos. Regarding social responsibility, the company informed about the project “Together We Left a Legacy” that improves the conditions of educational, social infrastructure and promotes sports. This year furniture was delivered to 17 schools to benefit 1,137 students, as well as Ejidos to benefit 310 people. There was talk of Peñasquito Open Doors, a program that offers guided tours so that members of neighboring communities know about the mining operation. 71 sports academies were also held, supporting 70 teams, with 1,224 beneficiaries where 830 uniforms were delivered. Another important item is the educational scholarships, which grant economic incentives to students from primary to university. There are two types of scholarships: by agreement, which in 2019 allowed the delivery of 411 supports, and scholarships of excellence, which is open call and that this year, benefited 192 students. For the entrepreneurs there is the “Ideas con Valor program”, for the creation and strengthening of micro businesses, which supported 120 families with the participation of 300 people. Through the ‘Local Employment Program”, 765 people from the communities surrounding the operation have been hired, who through specific training were able to develop the capabilities required for the mining operation.

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, phyllic alteration in an IOCG project in Jalisco, Mexico. Photo by Miguel A Heredia.

The Mining and Exploration News in Mexico: Highlights on the Second Week of December, 2019

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By Jorge Cirett

During the 50th week of the year (December 9th to December 15th, 2019), at least 18 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, Bacanora Minerals lithium deposit in Sonora is considered the biggest resource of the metal in the world, according to Francisco Quiroga, Mining sub-secretary. Camimex calls to maintain the competitivity of the mining sector, as it is being threatened by a environmental tax proposal. Newmonts Goldcorp´s Peñasquito mine in Zacatecas is to lift Mexican gold production in 2020, according to BNamericas. Camimex invited the secretary of the environmental agency (SEMARNAT), Victor Manuel Toledo to visit one of the mining units, for him to review what sustainable mining is. He will also be visiting Hermosillo and Ures, meeting with authorities of the municipalities affected by a toxic leak on 2014. ON EXPLORATION, in Chihuahua, Mammoth Resources updated on exploration efforts by partner Centerra at its Tenoriba project; Kootenay Silver released good drilling results on its Columba property. ON MINING, Alamos Gold and Golden Minerals released results for the third quarter 2019. GoGold released results on the year ending in September 2019. ON FINANCING, Advance Gold closed the second tranche of its private placement for gross proceeds of $42 K. Azure Minerals announced the receipt of A$467 K of VAT back taxes (dating to 2016) from the government. Tamino Minerals is planning to become “Pink Current” very soon on the OTC. Odyssey Marine Exploration obtained commitments for up to $4.2 M.   ON RESOURCES AND DEVELOPMENT, Candelaria Mining released results on 15 new holes from the Mirador mine at the Altagracia project in Oaxaca. Pan American Silver announced an initial resource estimate, on the polymetallic  skarn deposit at La Colorada, of 72.5 M tonnes @ 44 gpt Ag, 0.17% Cu, 2.02% Pb, 4.40% Zn, remaining open in most directions, and containing over 100 M Oz Ag. Defiance Silver updated on exploration efforts at its San Acacio project in Zacatecas and at its Tepal project in Michoacán. Prime Mining released surface road cut and trench assays from its Guadalupe de los Reyes project in Sinaloa. ON DEALS AND CORPORATE ISSUES, Tamino Minerals has signed a LOI on the Ofelia property, in Sonora. Discovery Metals informed Eric Sprott now owns 21% interest in the company. Newmont Goldcorp announced a deal with the Cedros community on water resources. ON SOCIAL RESPONSIBILITY. A mining gathering was held in Banamichi, Sonora. The Asociación de Mineros de Sonora celebrated its 40th anniversary. The first “Comité de Desarrollo Regional para las Zonas Mineras” was created in Sonora, to recommend the use of the Mining Fund in certain infrastructure projects in mining areas. Dr. Vagón, Grupo Mexico’s health itinerant clinic was at La Junta, and soon to be moved to the nearby Ciudad Cuauhtémoc, both in Chihuahua. The Consorcio Minero Benito Juárez and the Fundación Bécalos Televisa delivered 120 scholarships to excellency students. A fair was held in Tayoltita, Durango, to bring awareness of the mining work and environment to inhabitants and family members of mine workers. Minera Media Luna is showing a strong support for education in Guerrero, with shcolarships, internships and support to local schools. The Sonora miners association (AMSAC) signed an agreement with the Consejo Regulador del Bacanora, to source agave saplings on its greenhouses to the agave growers. The Mexican gray wolf has left the list of extinct species in the wild, moving to the category of species on extinction risk.

ON MEXICO ISSUES

  • The lithium deposit in Sonora is the major project of its type in the World, according to Francisco Quiroga, Sub-Secretary of Mining, on an interview by a journalist known country wide. He cautioned on not hurrying up to celebrate, as the lithium still has to be extracted, and be metallurgically separated of the other minerals present in the ore (In this project, unlike other, lithium is contained in a clay). This project is assumed to have 243 M tonnes of lithium, surpassing the Thacker Pass deposit in Nevada, the second lithium deposit, with reserves of 179 M tonnes of lithium. The deposit is co-owned by the English company (not Canadian, as stated in the note) Bacanora Lithium and the Chinese Ganfeng Lithium, and located in the Bacadehuachi municipality (tens of kilometers from the Campo Verde Protected Natural Area and the Chihuahua border).
  • Camimex calls for maintaining the competitivity of the Mining Sector in Sonora. The call was made by Karen Flores, Camimex head, on the first Universitary Mining Gathering held in Banamichi, Sonora. She called for a proposal to tax mining operations on environmental grounds to be repelled. Such tax would transform Sonora in one of the more expensive places to mine, in an industry that is already heavily regulated and taxed. According to the authorities, mining in 2018 provided more than 46 billion pesos (US$2.36 billion) in taxes, 9,000 billion pesos (US$461 M) in rights and more than 4,500 billion pesos (US$230 M) in resources for the Mining Fund.
  • Newmont Goldcorp’s Peñasquito mine in Zacatecas is to lift Mexican gold production in 2020, when production by other big players is to decline. The combined production by the three biggest producers in Mexico, Fresnillo, Newmont Goldcorp, and Alamos Gold should reach 1.59 M Oz Au, above the 1.22 M Oz Au mines in 2019. This is a 30% increment year on year, achievable if the companies reach their mid-point guidelines. According to BNamericas this figure is more than half the 3.15 M Oz Au to be produced by more than 20 companies in Mexico. Fresnillo’s production reached 923 K Oz Au in 2018, expects to produce 885 K Oz in 2019, 785 K Oz in 2021 and 665 K Oz in 2022; the decline motivated by the end of production at the Noche Buena mine and less production at Herradura. Meanwhile, Peñasquito expects to produce 575 K Oz Au in 2020 , and a little bit more in 2021, before production starts to decline due to lower grades. Alamos Gold expects to produce 150 – 160 K Oz Au during 2019 in Mulatos, while the Chanate mine is to produce only 5 K Oz. Minera Frisco and Agnico Eagle have seen their gold production dwindle in 2019, while Torex Gold reached 138 K Oz Au produced during the third quarter, and the company expects to sell 430 K Oz Au this year. Leagold also is to increase production at Los Filos, expecting to double on the 200 K Oz Au forecasted for this year.
  • Camimex invited Victor Manuel Toledo, secretary of the environment and natural resources (SEMARNAT) to visit one of the mining units, for him to review what sustainable mining is. Earlier in the day, in the morning presidential conference, Toledo stated that Semarnat is not against mining: “For Semarnat there is not good or bad mining, revisions have to be on a case by case basis, and confirm through inspection its adherence to norms”.
  • Victor Manuel Toledo, secretary of the environment and natural resources (SEMARNAT) is to be in Hermosillo in December 18th for the presentation of a book on the toxic leakage of 2014, and in Ures to meet with affected parties and authorities of municipalities within the Rio Sonora basin.
  • Alberto Orozco, president of the Sonora Mining Cluster, praised the visit that Victor Manuel Toledo (Environmental Secretary) is to make next week to a mining unit in Sonora. Orozco stressed the presence in Sonora of companies highly involved in the social and economic development of the producing regions in a sustainable manner. He also pointed that the Sonoran mining production is 36% of the national production, contributing with 18% of the State gross domestic product.

ON EXPLORATION

  • Mammoth Resources Corp. updated on exploration efforts at its Tenoriba project, funded by partner Centerrea Gold Inc.. Field logistics have been set, all historical geologic data compiled for Centerra’s review and interpretation and a 3D model is under preparation; all un-assayed core was sent for analysis, and the previous drill program permit is being closed, and a new one is to be prepared. Strong argillic, argillic and minor vuggy silica is present on volcanic rocks on a 4 to 6 Km long belt, with geophysics re-processing pointing to a larger target than previously envisaged, and a new 30 line-Km survey is being planned. A large soil anomaly highlights the eastern part of the corridor. Mammoth is working on community consultation processes with the two ejidos (communal lands) involved.
  • Kootenay Silver Inc. released results from six holes drilled at its Columba project in Chihuahua. Highlighted intervals comprise: 25.85 m @ 200 gpt Ag (including 11.5 m @ 415 gpt Ag, which includes 4.0 m @ 721 gpt Ag, which includes 1.9 m @ 982 gpt Ag) in silicified breccias in proximity to a lithological contact; 6.25 m @ 67 gpt Ag (including 2.09 m @ 172 gpt Ag); 3.0 m @ 314 gpt Ag (including 0.63 m @ 776 gpt Ag); 59.8 m @ 48 gpt Ag (including 9.57 m @ 146 gpt Ag); 6.63 m @ 103 gpt Ag and 1.0 m @ 124 gpt Ag. Several of the intercepts are in quartz veins in rhyolite, as quartz stockworks and as quartz-barite veins.

ON MINING

  • Alamos Gold Inc. released some production figures for 2019, including data on its Mexican production. At Mulatos, in Sonora, during the first nine months of this year 20 K tonnes per day were stacked @ 0.92 gpt Au, with a recovery of 67%, to produce 108 K Oz Au at cash cost $772 and a mine-site AISC of $861. Production from the Mulatos district is expected to total 150-160 K Oz Au in 2020, with ore mined from the Mulatos, El Victor and San Carlos open pits, as well as new production from Cerro Pelon. “A total of $7 million has been budgeted at Mulatos for exploration in 2020 which includes 14,000 m of drilling focused in the Mulatos near-mine, Carricito and La Yaqui Grande areas. A number of regional exploration targets have been identified in 2019 from the property-wide VTEM geophysical survey that was completed in late-2018. A focus of the 2020 regional exploration program will be to further evaluate these targets through systematic mapping, sampling, and ground geophysics”.
  • Golden Minerals Co. released results for the third quarter 2019. During the period Golden reported revenue of $1.9 M related to the lease of Velardeña’s oxide mill and costs of $0.6 M related to the services provided under the terms of the lease, for a net operating margin of $1.3 M. Exploration expenses were $0.9 M, Velardeña care and maintenance $0.4 M, administrative expenses $0.7 M for a total loss of $1.8 M for the quarter. Last October Golden entered into an agreement with Magellan Gold Corp. to sell the company’s option to earn a 100% interest in the Santa Maria and Las Marias exploration properties in Chihuahua. Cash and cash equivalents of $2.9 M by the end of the period.
  • GoGold Resources Inc. announced financial results for the year ending 2019. During the last quarter period the company acquired the Los Ricos project in Jalisco, for share consideration of $5.4 M and cash $4.5 M, of which $3.9 M is payable over three years. During the period the company sold 1 M Oz Ag and 8,752 Oz Ag, produced 1.78 M Oz AgEq, had income of $8.1 M at an AISC of $14.82 per Oz AgEq and cash cost $11.80 per OZ AgEq, a gain of $11.8 M on the sale of the Santa Gertrudis project royalty and has a net working capital of $13.1 M.

ON FINANCING

  • Advance Gold Corp. closed the second and final tranche of the private placement previously announced, for gross proceeds of $42 K (Tabasqueña, Zacatecas).
  • Azure Minerals Ltd. announced that the Mexican tax office has paid this week the amount of MX$6.19 M, approximately A$467 K. This is the interest component from a previous payment, bringing the total received by Azure to A$1.23 M. The payments are the result of the successful resolution of the company’s legal action for the recovery of IVA (the equivalent to GST, or VAT) dating to the 2016 financial year. A fee of 15% is payable to the legal and tax advisors involved (Alacrán, Sonora).
  • Tamino Minerals Inc. is planning to become Pink Current very soon on OTC markets, abiding to OTC disclosure lines. As of the end of September 2019, the company has 370.6 M shares, of which Pedro Villagran holds 138.8 M and Joseph Berry 33 M.
  • Odyssey Marine Exploration, Inc. obtained commitments for up to $4.2 M in funding in two separate arrangements. A group of existing shareholders is to provide up to $2 M in funding ($539 K already submitted) as advance against a portion of multi-million dollar payment Odyssey expects to receive within the next six months, related to a previously completed ship-wreck project. In addition, “a term sheet has been executed and definitive agreements are being drafted with the group that has already committed up to $6.5 million in non-recourse legal funding for the NAFTA action for up to an additional $2.2 million” (Bay of Ulloa, Baja California Sur).

ON RESOURCES AND DEVELOPMENT

  • Gold Resource Corp. released drill results from 15 holes from the Mirador mine area in the Altagracia project in Oaxaca. The Mirador mine is 16 Km NW from the Company’s Aguila project and processing facilities. Highlighted results comprise: 9.21 m @ 0.24 gpt Au, 260 gpt Ag (including 0.73 m @ 0.58 gpt Au, 1,085 gpt Au); 1.38 m @ 4.39 gpt Au, 1,455 gpt Ag; 1.08 m @ 1.81 gpt Au, 2,190 gpt Ag; 5.99 m @ 1.04 gpt Au, 206 gpt Ag (including 1.54 m @ 2.02 gpt Au, 590 gpt Ag); 3.72 m @ 1.44 gpt Au, 910 gpt Ag (including 1.0 m @ 2.84 gpt Au, 2,610 gpt Ag); 2.67 m @ 1.10 gpt Au, 354 gpt Ag.
  • Pan American Silver Corp. announced an initial mineral resource estimate for the large polymetallic deposit discovered in 2018 at La Colorada mine in Zacatecas. The inferred mineral resource is 72.5 M tonnes @ 44 gpt Ag, 0.17% Cu, 2.02% Pb, 4.40% Zn, remaining open in most directions and containing 102 M Oz Ag, 3.2 M tonnes of Zn, 1.5 M tonnes of Pb, and 121 K tonnes of Cu. Most of this mineralization is contained within a larger mineralized skarn 500 m x 600 m, between 600 and 1,700 m of depth. To make the geologic interpretation and resource estimation, 65 drill holes totalling 54,000 m of drilling were utilized.
  • Defiance Silver Corp. updated on exploration efforts to be made at its San Acacio project in Zacatecas. Targeted core re-logging and selective re-assay is on-going and will continue through 2020, while field exploration involves surface geochemistry outside the resource area, systematic underground mapping and sampling and regional targeting are carried out.
  • Defiance Silver Corp. announced OreQuest has been planning an exploration program at Tepal, in Michoacan. The aim is to follow up on high-grade drill results as the 1.42 m @ 25 gpt Au, 565 gpt Ag of last year campaign, which is coincidental with highly anomalous surface geochemistry and an untested chargeability anomaly.
  • Prime Mining Corp. released results from surface exploration at it Los Reyes property in Sinaloa. The trenching program has an advance of 25% with highlighted results of 5 m @ 1.0 gpt Au, 11 gpt Ag; 10.5 m @ 2.0 gpt Au, 18 gpt Ag; 16.5 m @ 2.5 gpt Au, 40 gpt Ag; 36.0 m @ 1.84 gpt Au, 13 gpt Ag; 34.5 m @ 4.2 gpt Au, 21 gpt Ag; 13.5 m @ 1.54 gpt Au, 37 gpt Ag in rod cuts, and 9 m @ 0.92 gpt Au, 22 gpt Ag; 4.5 m @ 2.66 gpt Au, 30 gpt Ag; 13.5 m @ 1.42 gpt Au, 49 gpt Ag; 13.5 m @ 1.59 gpt Au, 28 gpt Ag; 7.5 m @ 1.84 gpt Au, 37 gpt Ag; 16.5 m @ 1.04 gpt Au, 23 gpt Ag; 15.0 m @ 5.58 gpt Au, 23 gpt Ag in trenches. The company is working with the database of 493 historic drill holes to establish a new 43-101 compliant resource (currently holding 380 K and 155 K Oz Au in the indicated and inferred categories respectively).

ON DEALS AND CORPORATE ISSUES

  • Tamino Minerals Inc. informed it has singed a letter of intent (LOI) on the Ofelia property in Sonora. The LOI terms state four years of staged payments totalling US$1 M plus a 2% NSR, and provides a 90-day term for due-diligence work.
  • Discovery Metals Corp. announced that with the conversion of 3.3 M subscription receipts to shares, Mr. Eric Sprott owns now approximately 21% interest in the company (Cordero, Chihuahua).
  • Newmont Goldcorp. announced that the Peñasquito mine and the nearby San Juan Cedros community (one of 25 neighbouring communities) in Zacatecas, agreed to an infrastructure solution for sustainable water availability for the community. The 30-year water agreement includes additional water wells to supplement the 600 K liters per-day reverse osmosis drinking water plant the company built in 2018.

ON SOCIAL RESPONSIBILITY

  • A Mining Gathering was held in Banamichi, Sonora, with more than 600 attendees, mostly students, with the purpose of letting them know the opportunities for internships and employment in mining units. Among the attendees were also governors of mining states, the ambassadors of mining countries, Congress representatives, Union leaders, 14 majors and representatives for mining companies, mining associations and mining communities.
  • The Asociación de Mineros de Sonora (Sonora’s Miners Association, or AMSAC) celebrated its 40th The celebration included a series of presentations and a formal dinner. Among the speakers were Francisco Quiroga (Mining Sub-secretary), Karen Flores (Camimex), Ernesto [Ríos (Americas Mining) and Lourdes McPherson (Argonaut Gold).
  • The first “Comité de Desarrollo Regional para las Zona Mineras (Mining Zones Development  Committee) was created in Hermosillo, Sonora. The finality of such committees is to assess and approve investment projects derived from the Mining Fund, incorporating all interest groups. The committee is integrated by:Comite Fondo Minero11The fist session is to be held in February 28, 2020, and the second on August 28, 2020.
  • Dr. Vagón is to be at La Junta, Chihuahua. From the 12 to the 16 of December, 2019. Among the services to be provided are: general consult, dermatology, pediatric care, geriatric care, odontology, chiropractic, physic rehabilitation, optometry, audiometry, mastography, colposcopy, family planning, lab test, diabetics clinic, psychology and nutrition. This itinerant train-mounted clinic has the capacity to Attend 550 persons daily.
  • The Safety, Environment and Social Responsibility Fair San Dimas 2019, was held on December 6 in Tayoltita, Durango. The different departments of the First Majestic mine displayed details on their work on the mining process, in a didactic and entertaining way, to workers, suppliers, municipality and State authorities, as well as their families and local inhabitants. Radio Plata (Silver Radio) was commissioned, the first radio station to be located in the vicinity, is part of the company’s Centro Cultural, where educative, social and cultural activities are to take place.
  • Minera Media Luna is showing a strong support for education in Guerrero. With support from local authorities in Cocula, the Instituto Tecnológico de Iguala, the Universidad Tecnológica Autónoma del Norte de Iguala, the State government, the Instituto Estatal para la Educación de Jóvenes y Adultos de Guerrero and the general population in Cocula, the company has: installed programs for diminishing the educative lag in primary and secondary education; taken 36 students in internships from local universities; supported 86 students through scholarships; invested $500 K pesos along with the Cocula municipality for the hiring of primary education personnel; participated in the Fourth Week of Mining on the Universidad Autónoma de Guerrero…. And several other programs in education not posted here for lack of space.
  • AMSAC, the Sonora Miners Association, signed an agreement with the Consejo Regulador del Bacanora (Regulatory Council for Bacanora, a spirits drink). Under this agreement , several mining companies are to grow the needed agave saplings for the production of Bacanora in their green houses, to be transplanted in the field by the agave growers.
  • Minera Peña Colorada presented the “Ilustred Guide to Wildlife in the Minatitlan Microbasin”, at the Feria Internacional del Libro 2019, in Guadalajara, Jalisco. This work was accomplished with the support of the Universidad Nacional Autónoma de México, and the Benemérita Universidad de Puebla.
  • The Mexican gray wolf has left the list of extinct species on the wild, moving to the category of species on extinction risk. This is the result of an international effort among the USA and Mexican governments, with the participation of Grupo Mexico. The declaration comes after 12 liberations and the documentation of 9 successful litters with some 30 puppies on the wild. Grupo Mexico, as well as other mining companies, has an UMA (Environmental Management Unit) that take care and reproduce threatened species.
  • Dr Vagón, Grupo Mexico’s health train, is to be on Ciudad Cuahutémoc, Chihuahua, from December 18 to December 22. The 17 train carriages itinerant clinic has the capacity to attend 600 persons per day, providing for a wide array of services, like diagnostics, ailment prevention, dermatology, odontology, physical rehabilitation, optometry, audiometry, psychology, nutrition, diabetes and chiropractic treatments.

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: Sheeted quartz veinlets from an orogenic gold project in Oaxaca. Picture by Jorge Cirett

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Evrim acquires the Suanse Property in Mexico

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Vancouver B.C. November 14, 2019: Evrim Resources Corp. (TSX.V:EVM) (“Evrim” or the “Company”) is pleased to announce that it has signed an agreement (the “Agreement”) with San Marco Resources (“San Marco”) to acquire the Suanse Property in Sonora, Mexico.  The Suanse Property covers 1,115 hectares of ground within Evrim’s larger Llano del Nogal claim block and lies immediately north of Evrim’s Suanse porphyry target (see Evrim’s news release dated October 12, 2016).  Evrim’s Llano del Nogal project is located in the prolific Laramide porphyry belt of northern Mexico between the world-class Buenavista (Cananea) and La Caridad porphyry copper mines; it is one of the few undrilled porphyry copper-epithermal gold-silver systems on the trend.

The Mining and Exploration News in Mexico: Highlights on the Second Week of October, 2019.

Chalcedonic quartz breccia

By Miguel A Heredia

During the forty-one week of the year (October 7th to October 13th, 2019), at least 29 press releases were announced by companies working in Mexico, with eight communicating production results, seven announcing financial rounds, five informing on exploration results, three commenting on Mexican issues, three reporting on resources and developments of their projects, two disclosing deals and corporate issues, and one notifying on social responsibility.  ON MEXICO ISSUES, Newmont-Goldcorp confirmed that the illegal blockade of its Peñasquito mine in Zacatecas was lifted on October 8, 2019. ON EXPLORATION, In Sonora, Azure released high grade results from 21 dump samples at its Alacran project, and announced the identification of five new targets.  In Chihuahua, Sable completed a ground geophysical survey at its Vinata project, and the Pan American-Radius JV announced the commencement of the phase 3 exploration work on its Amalia project. In Durango, Chesapeake provided updated results from its on-going regional exploration program near its Metates project. In Zacatecas, Advance Gold initiated the second phase of a geophysical survey on its Tabasquena project. ON MINING, Newmont-Goldcorp, Coeur, Consolidated Zinc, Endeavour, GoGold, Great Panther, Hecla, and US Antimony presented Q3, 2019 production results from their Mexican operations. ON FINANCING, Advanced Gold announced its plan to rise up to $250K through a non-brokered private placement (Tabasquena project, Zacatecas). Discovery Metals announced its intention to complete a non-brokered private placement for gross proceed of up to $17M (Cordero deposit, Chihuahua).  First Mexican announced the share cancellation, consolidation, and reinstatement of its common shares, as well as its intention to complete a non-brokered private placement for gross proceeds of up to $0.5M (Guadalupe property, Sonora). Fortuna Silver announced the closing of convertible debenture of the over-allotment option for gross proceeds of $46M (San Jose mine, Oaxaca). Goldplay announced its plan to complete a brokered private placement for gross proceeds of up to $2.5M (San Marcial property, Sinaloa).  Magellan announced agreements to convert an aggregate of $2.45M of outstanding debt obligations into a newly-created series of preferred shares of the company (San Dieguito de Arriba flotation plant, Nayarit). Vizsla received conditional approval from TSX for the acquisition of Canam Alpine Ventures LTD, and resumed trading on October 9, 2019 (Copala-Panuco project, Sinaloa). Santacruz reported that the Silva Family acquired an aggregate of 30M common shares, at a deemed price of CAD $0.05 per share for total deemed consideration of CAD $1.5M (Veta Grande project, Zacatecas). ON RESOURCES AND DEVELOPMENT, SilverCrest announced expansion drill results and the discovery of a new vein at its Las Chispas project in Sonora. Mexus Gold reported that the Merrill-Crow Au recovery plant for its Santa Elena mine in Sonora is en route. Mexican Gold presented a new NI 43-101 resource estimate for its Las Minas project in Veracruz. US Antimony informed that the fencing of the tailings pond, completion of the water well, and most of the major construction has been completed at its Puerto Blanco mill for its Los Juarez mine in Queretaro. ON DEALS AND CORPORATE ISSUES, Canuc completed its final payment for the El Tule 1 claim at its San Javier project in Sonora. Santacruz completed the acquisition of Carrizal Mining and reported that the Silva Family acquired an aggregate of 30M common shares.    ON SOCIAL RESPONSIBILITY, Alamos Gold received the corporate social responsibility (CSR) best practices award, for its achievements in social, economic and environmental sustainability (Mulatos mine, Sonora).

 ON MEXICO ISSUES

  • Newmont-Goldcorp Corporation, confirmed that the illegal blockade of its Peñasquito mine in Zacatecas was lifted on October 8, 2019, however, operations remain temporarily suspended pending to further assurances. “The company continues to work closely with the federal and state governments toward a sustainable, long-term solution, and lifting of the blockade paves the way for the government-sponsored dialogue to resume”.

ON EXPLORATION

  • Azure Minerals Limited, released high grade results from samples collected from 21 dumps that surround some of the historical old workings in the southeast area of its Alacran project in Sonora, and announced the identification of five new targets. This sampling returned very high grades with maximum values of 3,675 g/t Ag, 24.1 g/t Au, 2.3% Cu, 33.5% Pb, and 21.0% Zn. 10 samples returning values greater than 1,000 g/t Ag (average of 21 samples = 1,073g/t Ag); 17 samples returning values greater than 1.0g/t Au (average of 21 samples = 4.43g/t Au); 10 samples returning values greater than 1.0% Cu (average of 21 samples = 0.95% Cu); 12 samples returning values greater than 10.0% Pb (average of 21 samples = 14.92% Pb); and 10 samples returning values greater than 10.0% Zn (average of 21 samples = 9.28% Zn). “This first-pass sampling is very encouraging and further systematic sampling and detailed mapping of the veins will commence shortly to provide targets for follow-up trenching and drilling”.
  • Sable Resources, completed 170km of GroundMag conducted along E-W lines spaced 200m apart, and 8,950m of CSAMT surveys in nine lines at its Vinata project in Chihuahua. “The outcropping NNE epithermal vein system, which represents the main target at the project, appears coincident with a MagLow running on the western margin of the rhyolite intrusion for over 3 km in strike. Some stratigraphic features are also defined on the Mag sections; including a well-defined MagLow feature observed at the contact between the rhyolite intrusion and the interpreted limestones that underlie the upper volcanic sequence; this contact constitutes an additional potential target zone. At Vinata Sur the outcropping faults and breccias containing Fe-Mn oxides and associated Mn, Ba, Sb, As, Mo, Zn anomalies, hosted by volcanic rocks, are coincident with an elliptical shape NS oriented MagLow”. These geophysical surveys were carried out as preparation work for the first ever upcoming drilling campaign, which will consists of 2,000m to test for high-grade precious metal horizons approximately 200 metres below anomalous surface samples. This Phase 1 drill program will be expanded should positive results warrant additional drilling.
  • Pan American Silver Corp., – Radius Gold Inc JV, announced the commencement of the phase 3 exploration work on its Amalia project in Chihuahua. Pan American will operate this phase of exploration work, which will be focused on preparation and execution of the phase 3 drilling program that includes an additional 2,500m of diamond drilling.
  • Chesapeake Gold Corp., provided updated results from its on-going regional exploration program near its Metates project. “Three significant Au-Ag prospects, Crisy, San Javier and Cerro Pelon, continue to demonstrate district scale potential within different regional structural settings associated with intermediate composition intrusive rocks”. The most significant trench sampling results at Crisy prospect were 1.4 g/t Au and 75 g/t Ag over 43m; 1.9 g/t Au and 11 g/t Ag over 38m; and 2.4 g/t Au and 80 g/t Ag over 24m. At San Javier prospect, channel samples returned 1.6 g/t Au and 25 g/t Ag over 12m and 8.3 g/t Au and 1,972 g/t Ag over 1.6m. At Cerro Pelon prospect, channel samples collected on a new identified NW trending breccia yielded significant results such as 33 g/t Au over 3m, and 3.4 g/t Au over 10m.
  • Advance Gold Corp., initiated the second phase of a 3D IP survey on its Tabasquena project in Zacatecas. The goal is to explore to the south the 800m by 500m chargeability anomaly detected during the first phase IP survey, where the anomaly comes closest to surface.

ON MINING

  • Newmont-Goldcorp Corporation, reported Q3, 2019 production results from its Peñasquito mine in Zacatecas. It produced 58K Oz Au, 7.4M Oz Ag, 51.1M Lb Pb, and 83.1M Lb Zn. The illegal blockade impacted Peñasquito’s third quarter production by approximately 11K Oz Au, 1.7 M Oz Ag, 13.7 M Lb Pb and 22.8 M Lb Zn, and is expected to impact the company’s full-year results for the operation.
  • Coeur Mining Inc., presented Q3, 2019 production results from its Palmarejo mine in Chihuahua. The company milled 442,464 tonnes of 2.8 g/t Au and 152 g/t Ag, to produce 31.8K Oz Au and 1.7M Oz Ag. Metallurgical recoveries were 81.7% and 79.6% for Au and Ag respectively. Coeur announced that its full-year production guidance remains unchanged at 95K-105K Oz Au and 6.5-7.2M Oz Ag.
  • Consolidated Zinc Limited, announced production results from its Plomosas mine in Chihuahua for the period September, 2019. The company milled 1,363 tonnes with grades of 10.4% Zn, 7.5% Pb, and 32 g/t Ag, to produce 318K Lb Zn, 228.5K Oz Pb, and 1,402 Oz Ag. It also reported that 3,607 tonnes were milled and processed at the Aldama facility with grades of 10.4% Zn, 7.5% Pb, and 32 g/t Ag. The ore material processed produced high-quality clean Zn and Pb concentrates free to smelting and refining.
  • Endeavour Silver Corp., reported Q3, 2019 production results from their four Mexican operations. Consolidated production was a total of 234,196 tonnes of 144 g/t Ag and 1.49 g/t Au with metallurgical recoveries of 87.6% and 86.7% respectively, to produce 5K Oz Ag and 9.7K Oz Au. The table below shows the production figures  by separate mine:

  • GoGold Resources Inc., presented production results from its Parral tailings project in Chihuahua for the period Q3, 2019. The company produced 326.6K Oz Ag and 2,921 Oz Au (580.7 Oz AgEq).
  • Great Panther Mining Limited, announced Q3, 2019 production results from their Topia and Guanajuato mines. At Topia mine in Durango, it processed 21,761 tonnes of 0.86 g/t Au and 418 g/t Ag, with metallurgical recoveries of 4% and 93.8% respectively, to produce 344 Oz Au, 274.2K Oz Ag, 1.2M Lb Pb, and 1.5M Lb Zn (501.5K OZ AgEq). At its Guanajuato mine complex, the company processed 44K tonnes of 2.47 g/t Au and 119 g/t Ag with metallurgical recoveries of 85.4% and 85.6% respectively, to produce 3K Oz Au and 143.8K Oz Ag (383K Oz AgEq).
  • Hecla Mining Company, presented Q3, 2019 production results from its San Sebastian mine in Durango. The mill at San Sebastian operated at an average of 586 tonnes per day, to produce 0.6M Oz Ag and 4,719 Oz Au.
  • US Antimony Corporation, reported estimated sales for the period Q3, 2019 from their Mexican operations. It sold 381.7K Lb Sb, 12.5 Oz Au, and 3.4K Oz Ag.

ON FINANCING

  • Advance Gold Corp., announced its intention to rise funds up to $250K through a non-brokered private placement. Net proceeds will be used to advance its Tabasquena project in Zacatecas.
  • Discovery Metals Corp., announced its intention to complete a non-brokered private placement for gross proceeds of up to $17M, including an investment of 5M from Eric Sprott. “The balance of Mr. Sprott’s investment will be completed with the purchase of subscription receipts, which if converted, will increase his interest in the company to approximately 22%, assuming the private placement is fully subscribed (Cordero deposit, Chihuahua)”.
  • First Mexican Gold Corp., announced a number of administrative tasks that the company had to work diligently to get a reinstatement of trading of its common shares on the TSX. First Mexican cancelled 9M shares that it had issued without obtaining prior TSX approval, and then, 1M shares without TSX approval as payment to arrange a credit facility. Once this problem was solved by the director and offices of the compnay, First Mexican consolidated its common shares on a ten for one basis, reducing the number of its outstanding common shares from 81,844,360 to 8,184,429. It also announced its intention to complete a post-consolidation basis private placement for gross proceeds of up to $0.5M but TSX notified that it will be unable to complete the offering until the company shares are reinstated for trading. As such, the company has cancelled the offering and will look to complete it at a future time. First Mexican has worked diligently looking the revocation of a cease trade order issued by the various commission securities. The company finally reported that the trading of its common shares will reinstate on October 11, 2019 (Guadalupe property, Sonora).
  • Fortuna Silver Mines Inc., announced the closing of convertible debenture of the over-allotment granted to CIBC Capital Markets, Scotiabank, and BMO Capital Markets. The company sold unsecured convertible debentures for gross proceeds of USD $6M in connection with the bought deal offering completed on October 2, 2019 for gross proceeds of USD $40M, bringing the total aggregate gross proceeds to USD $46M (San Jose mine, Oaxaca).
  • Goldplay Exploration Ltd., announced its intention to complete a brokered private placement for gross proceeds of up to $2.5M. It also has granted the agent an option to increase the size of the offering by up to 20% of the number of shares. Net proceeds will be used for exploration work on its San Marcial property in Sinaloa.
  • Magellan Gold Corporation, announced agreements with its primary secured creditors and largest shareholder to convert an aggregate of $2.5M of outstanding debt obligations into a newly-created series of preferred shares of the company. The Preferred Shares will carry a $2.45 million liquidation preference, subject to adjustments, be convertible into common stock at $1.00 per share and bear a 10% annual dividend payable in kind at the option of the company. “The agreements release and reduce liens on certain assets of the company and convert portions of both its secured and unsecured debt holdings to preferred shares in order enhance the balance sheet and facilitate new financing arrangements (San Dieguito de Arriba flotation plant, Nayarit).
  • Vizsla Resources Corp., received conditional approval from TSX for the acquisition of Canam Alpine Ventures Ltd., and resumed trading on October 9, 2019 (Copala-Panuco project, Sinaloa).
  • Santacruz Silver Mining Ltd., reported that the Silva Family acquired an aggregate of 30M common shares, at a deemed price of CAD $0.05 per share for total deemed consideration of CAD $1.5M. This transaction represents approximately 14.7% of the issued and outstanding common shares of the company on a non-diluted basis and 15.3% on a partially-diluted basis assuming the exercise of the stock options owned by Mr. Silva (Veta Grande project, Zacatecas).

ON RESOURCES AND DEVELOPMENT

  • SilverCrest Metals Inc., reported the results of 31 expansion drill holes for Giovanni, Blanquita, and Las Chispas veins and the discovery of a new vein (Blanquita Dos vein) at its Las Chispas project in Sonora. The most significant expansion drill results were encountered in hole LC19-111 (Giovanni Vein) with 8.99 g/t Au and 1,424 g/t Ag (2,098 g/t AgEq) over a true width of 1.6m; hole LC19-107 (Las Chispas Vein) with 7.72 g/t Au and 1,105 g/t Ag (1,584 g/t AgEq) over a true width of 1.2m; and hole LC19-101 (Giovanni Vein), with 4.17 g/t Au and 642 g/t Ag (955 g/t AgEq) over a true width of 2.5m. These drill results confirmed that deeper mineralization which could expand the current resource estimate at Las Chispas project. SilverCrest also reported the discovery of a new vein called Blanquita Dos Vein. “The La Blanquita Dos Vein is a new near-surface discovery located in the hanging wall of the La Blanquita Vein. The most significant drill intersection encountered on this vein was in hole LC19-98 with 6.58 g/t Au and 274 g/t Ag (767 g/t AgEq) over a true width of 0.8m, including 13.1 g/t Au and 392 g/t Ag (1,375 g/t AgEq) over a true width of 0.4m. This vein is approximately 50 metres from La Blanquita and was discovered while drilling to depth for the Giovanni Vein and the Las Chispas Vein. “There are currently 18 core drills operating at Las Chispas; 16 surface and 2 underground. This includes one rig completing process plant site condemnation, 16 rigs completing in-fill and known vein expansion holes in the Babicanora Area veins, and one rig working on new vein targets in the Las Chispas Area with two more to be re-allocated after in-fill drilling completion. Approximately 80 holes for 30,000 metres remain to be completed in 2019 of which 25 to 35 holes (8,000 metres) are for the Las Chispas Area veins. An updated resource estimate, including the Las Chispas Area veins, is expected in H1, 2020, along with the ongoing feasibility study”.
  • Mexus Gold US, reported that the Merrill-Crow Au recovery plant for its Santa Elena mine in Sonora is en route, as well as a 80Kw generator which is necessary to run the plant. The company expects the new equipment to be operational by November 1st, 2019.
  • Mexican Gold Corp., presented a new 43-101 resource estimate for its Las Minas project in Veracruz. The new resource estimate as of September 12, 2019. Indicated resources are 5,457,000 tons of 1.78 g/t Au, 6.5 g/t Ag, and 1.25% Cu (3.67 g/t AuEq), for a total of 313K Oz Au, 1.15M Oz Ag, and 150.3M Lb Cu (645K Oz AuEq).  Inferred resources are 2,514,000 tons of 1.25 g/t Au, 5.5 g/t Ag, and 0.94% Cu (2.68 g/t AuEq) for a total of 101K Oz Au, 446K Oz Ag, and 51.96M Lb Cu (217K Oz AuEq).
  • US Antimony Corporation, informed that the fencing of the tailings pond, completion of the water well, and most of the major construction has been completed at its Puerto Blanco mill for the Los Juarez mine in Querétaro. Testing will proceed during the completion of the laboratory.

 ON DEALS AND CORPORATE ISSUES

  • Canuc Resources Corporation, completed its final payment to Minerales y Carbones de Mexico S.A. de C.V., for the El Tule 1 claim. Canuc has expanded its san Javier project area in Sonora State by 151.14 ha. The company now owns 17 contiguous mineral concessions along the San Javier mineralized corridor, extending to 3km from the historical Santa Rosa mine old workings.
  • Santacruz Silver Mining Ltd., completed the acquisition of Carrizal Mining S.A. de C.V., after purchasing the remaining 50% of outstanding shares of PCG Mining S.A. de C.V., which is the parent holding of Carrizal Mining S.A. de C.V, in consideration for the issue of 30M common shares of the compnay. It also reported that the Silva Family acquired an aggregate of 30M common shares, which represent approximately 14.7% of the issued and outstanding common shares of the Company on a non-diluted basis and 15.3% on a partially-diluted basis assuming the exercise of the stock options owned by Mr. Silva.

ON SOCIAL RESPONSIBILITY

  • Alamos Gold Inc., received the corporate social responsibility (CSR) best practices award, for its achievements in social, economic and environmental sustainability (Mulatos mine, Sonora).This award created by the Mexican Center for Philanthropy and the alliance for CSR was granted to Minas de Oro Nacional, a subsidiary of Alamos Gold as its program called “A new horizon for the families of Mulatos and Matarachi” was the winner in the category of community engagement.

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, chalcedonic quartz breccia with disseminated pyrite in a project in Zacatecas, Mexico.  Photo by Miguel A Heredia.

The Mining and Exploration News in Mexico: Highlights on the First Week of October, 2019

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The Mining and Exploration News in Mexico: Highlights on the First Week of October, 2019

By Jorge Cirett

During the 40th week of the year (September 30th to October 6th, 2019), at least 20 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, Gold production declined 2.8% in 2018. On the illegal blockade at the Peñasquito mine in Zacatecas, the president of Mexico asked for both parties to solve their differences (not pronouncing himself on the illegality of the blockade). Frisco and Cemex suffered big losses at the Mexican stock exchange. ON EXPLORATION, in Sonora, Magna Gold signed a LOI on the San Judas project in Sonora; Colibri Resource is to complete mapping and sampling on its Evelyn project. In Sinaloa, Kootenay Silver signed a surface access agreement on the Copalito project. In Zacatecas, Alien Metals is eyeing a drill program on its San Celso project.  ON MINING, Alien Metals presented financial results for the first semester 2019. Torex Gold produced 138,100 Oz Au at El Limon-Guajes mine in Guerrero during the Q3 2019. ON FINANCING, Southern Silver, Millrock Resources and Alien Metals granted 3.25 M, 1.88 M and 7 M incentive options respectively to officers, directors, employees and consultants. Fortuna Silver closed a bought deal financing for US$40 M. Azure Minerals raised $4 M. ON RESOURCES AND DEVELOPMENT, GoGold resources released results for one more hole at its Los Ricos project in Jalisco. Premier Gold released results on drilling at the Lupita extension on its Mercedes mine in Sonora. Goldplay disclosed channel surface sample results at its San Marcial property in Sinaloa. Silver Bull provided results from eleven more drill holes at the Sierra Mojada project in Coahuila (halted by an illegal blockade). ON DEALS AND CORPORATE ISSUES, Magna Gold signed a LOI on the San Judas project in Sonora. Silver Bull halted exploration at its Sierra Mojada project in Coahuila, due to an illegal blockade by a mining cooperative demanding a royalty payment on a property that is not in production. Fortuna Silver terminated the option on Prospero Silver’s Pachuca SE project in Hidalgo. Millrock and Riverside entered into a definitive agreement on the La Union, Los Cuarentas, El Pima, El Valle, and Llano del Nogal projects in Sonora. Santacruz Silver approved the acquisition of the remaining 50% of PCG Mining S.A. de C.V., parent company of Carrizal Mining, S.A. de C.V.. ON SOCIAL RESPONSIBILITY. No relevant news.

ON MEXICO ISSUES

  • Gold production in Mexico declined by 2.8% in July 2019. This is the 28th consecutive month of production contractions, the longest since 1981, according to INEGI (Instituto Nacional de Estadística y Geografía). In 2016 the production declined by 5.2%, in 2017 another 13.6% and a further 9.7% in 2018. Mineral products with annual increments include zinc at 10.7%, iron pellets with 2.9%, lead with 2.5%, sulphur with 1.6% and coal with 0.8%.
  • On Peñasquito’s illegal blockade, Mexico’s president, Andres Manuel Lopez Obrador, asked both parties two solve their differences in the conflict that has now more than two weeks (he did not mention the blockade being illegal). Newmont Goldcorp has offered more than US$25 M in investments, amount that the blockaders reckon as lacking. The Peñasquito mine produced 272,000 Oz Au last year, and had re-started production in mid-June after a first illegal blockade by truckers wanting to get a contract and locals accusing the company of water availability issues.
  • To the 3rd of October Frisco and Cemex have suffered big losses in the Mexican stock exchange (S&P/BMV IPC), 13.76% and 6.24% respectively, under the current commercial instability between USA and the European Union. Frisco is one of the biggest mining companies in Mexico, with operations in Baja California, Sonora, Chihuahua, Zacatecas and Aguascalientes (although Frisco is also known for its scant releases on reserves and resources). Cemex is the biggest Mexican cement producer, with operations internationally.

ON EXPLORATION

  • Magna Gold Corp. signed a LOI to explore the San Judas project in Sonora. The two mineral concessions cover 2806 ha underlain by a Precambrian basement composed of granite, gneiss, pegmatites and schist. “The entire sequence is affected by multiple deformations and the emplacement of intrusions such as leucocratic granites and andesitic dikes”. Gold mineralization is associated with quartz-breccia veins, quartz veins and “quartz stockworks emplaced along a series of parallel, foliated, low-angle shear zones within the igneous-metamorphic sequence”. Assays in an historical rock chip sample database have values of up to 230 gpt gold.
  • Colibri Resource Corp. contracted Auro Metallum Geology Consulting Services of Hermosillo, in Sonora, to complete a geological mapping study of its 506 ha Evelyn Gold Project near Caborca in Sonora. Recent sampling has returned up to 4.8 gpt Au from abundant quartz in sub-crop in a new zone identified by soil sampling.
  • Alien Metals Ltd. updated on the exploration of its San Celso and Los Campos projects in Zacatecas. At San Celso a next step of work will examine a drill program funded by a third party to test the strike extension of the main veins, and the depth extension below the existing workings.
  • Kootenay Silver Inc. signed a surface access agreement with the local ejido at the Copalito project in Sinaloa. Said agreement allows the company to mapping, sampling, geophysics, trenching and drilling. The 3,700 ha project covers a low sulfidation epithermal system with numerous veins, traced over up to 2 km of length, and 0.5 to 15 meters in width. Sampling has returned assays of up to 8.2 gpt Au, 532 gpt Ag, 17.4% Zn, 9.9% Pb and 5.1% Cu.

ON MINING

  • Alien Metals Ltd. presented its financial results for the first semester of 2019. As of the end of the period the company had total assets of US$1.2 M, of which US$0.4 M was cash, and current total liabilities for US$0.1 M (Donovan 2, Zacatecas).
  • Torex Gold Resources Inc. announced gold production of 138,100 ounces of gold during Q3 2019, on track to meet it 2019 production guidance of 430,000 ounces. During the period plant throughput averaged 12,370 tonnes per day (tpd), underground mining 1,110 tpd, open pit mining 14,270 tpd (El Limon-Guajes, Guerrero).

ON FINANCING

  • Southern Silver Exploration Corp. granted 3.25 M incentive stock options to directors, officers and consultants, exercisable at $0.27 per common share for a period of five years. The rolling incentive stock option plan was also approved, pursuant to which a maximum of 10% of the issued shares will be reserved for issuance under the plan. (Cerro Las Minitas, Durango).
  • Millrock Resources Inc. approved a grant of stock options to employees, officers, directors and advisers to the company, granting a total of 1.88 M stock options exercisable at $0.09 for five years. The company is also to settle debt owed for deferred cash compensation to certain officers, directors and employees by issuing 819 K Millrock shares (Batamote, Sonora).
  • Alien Metals Ltd. granted 7 M options to its technical director, Brill Brodie. All shares are exercisable from 1 October 2019, of which 3 M can be exercised at 0.22 pence, 3 M at 0.30 pence and 4 M at 0.45 pence (San Celso, Zacatecas).
  • Fortuna Silver Mines Inc. closed the previously announced bought deal offering of senior subordinated unsecured convertible debentures for an aggregate principal amount of US$40 M. “The Debentures mature on October 31, 2024 and will bear interest at a rate of 4.65% per annum, payable semi-annually in arrears on the last business day of April and October in each year, commencing on April 30, 2020. The Debentures will be convertible at the holder’s option into common shares in the capital of the Company” at a conversion price of US$5.00 per share (San José, Oaxaca).
  • Azure Minerals Ltd. raised $4 M (before costs) through a placement to institutional and sophisticated investors “to relaunch an aggressive exploration push on the Alacrán silver and gold projects” in Sonora. Azure is to undertake drilling to increase mineral resources at the Loma Bonita Au-Ag deposit, today standing at 150 K Oz Au, 4.8 M Oz Ag in 5.4 M tonnes @ 0.9 gpt Au, 28 gpt Ag.

ON RESOURCES AND DEVELOPMENT

  • GoGold Resources Inc. released results from one more hole completed on the San Juan area of its Los Ricos project in Jalisco. The hole returned 21.0 m @ 1.38 gpt Au, 146 gpt Ag (3.33 gpt AuEq), including 5.0 m @ 4.36 gpt Au, 436 gpt Ag (10.2 gpt AuEq). The San Juan area is located 400 m NW from the Los Ricos Main area.
  • Premier Gold Mines Inc. released results from its drilling program focused on delineating new mineral resources in the Lupita Extension at its Mercedes mine in Sonora. Highlighted results comprise 3.6 m @ 7.18 gpt Au, 54 gpt Ag; 1.8 m @ 24.24 gpt Au, 179 gpt Ag; 3.4 m @ 8.86 gpt Au, 67 gpt Ag; 3.1 m @ 13.65 gpt Au, 80 gpt Ag. The Neo target is 400 m north of San Martin is a possible extension of the Diluvio system, with one of three drill holes returning 3.1 m @ 13.65 gpt Au, 80 gpt Ag.
  • Goldplay Exploration Ltd. disclosed results from channel sampling on the Faisanes target of the San Marcial project in Sinaloa. The samples were cut by saw along the access road walls and road surface, returning 10 m @ 98 gpt Ag, 0.06 gpt Au) 0.6 m @ 587 gpt Ag, nil Au; 1.0 m @ 214 gpt Ag, nil Au; 1.1 m @ 42 gpt Ag, nil Au; 1.0 m @ 41 gpt Ag, 0.26 gpt Au.
  • Silver Bull Resources Inc. provided results from eleven more drill holes from its Sierra Mojada project in Coahuila. Highlights from the holes comprise: 17.1 m of oxide mineralization @ 120 gpt Ag, 0.43% Cu (including 1.35 m @ 539 gpt Ag, 0.27% Cu and 2.25 m @ 198 gpt Ag, 1.66% Cu and 0.55 m @ 403 gpt Ag, 1.6% Cu); 5.2 m of sulfide mineralization @ 149 gpt Ag, 0.87% Cu, 4.67% Zn. Due to an illegal blockade by a cooperative of miners who hold a royalty on two claims, the drill program has been paused.

ON DEALS AND CORPORATE ISSUES

  • Magna Gold Corp. entered into a binding letter of intent (LOI) with the private owners of the two mining concessions forming the 2,806 ha San Judas project in Sonora. The deal involves payments of US$50 K on signature of the definitive agreement, US$50 K on the first year, US$100 K on the second year, US$150 K on the third year, US$300 K on the fourth year and US$1.,03 M on the fifth year, all figures plus VAT.
  • Silver Bull Resources Inc. halted all work on the Sierra Mojada project in Coahuila due to a blockade by a cooperative of local miners called Sociedad Cooperativa de Exploración Minera Mineros Norteños, S.C.L.. The company has an agreement with the said cooperative on two mineral concessions in the eastern part of the Sierra Mojada project, under which they have the right of a 2% production royalty. Since 2014 the cooperative filed a suit fighting for payment of the royalty, notwithstanding the lack of production from the property. The cooperative also demands payments of wages for individuals that have not worked for the company, neither received employment commitments from Silver Bull. The cooperative has now illegally blockaded access to the project in an attempt to force a settlement before the final ruling. “Silver Bull is working with authorities to resolve the situation in a safe, fair, and timely manner”.
  • Fortuna Silver Mines Inc. announced the termination of the Pachuca SE property option agreement signed previously with Prospero Silver Corp. (San José, Oaxaca).
  • Millrock Resources Inc. entered definitive agreements to sell the La Union, Los Cuarentas, El Pima, El Valle, and Llano del Nogal claim blocks to Riverside Resources Inc., as well a copy of its exploration database and exploration vehicles also to Riverside. Consideration paid to Millrock is $35 K cash and 150 K Riverside shares, and a 0.5% NSR on the El Pima, El Valle and Santa Rosalia (conditional on this one) claims. “Millrock has retained the El Batamote copper porphyry project and this will be the sole focus of Millrock’s exploration effort in Mexico going forward” (Batamote, Sonora).
  • Santacruz Silver Mining Ltd. shareholders approved in its last annual general meeting held in October 1, 2019, the re-election of directors, the auditor of the company and the approval of the existing 10% rolling stock option plan. Also approved was the acquisition of the remaining 50% of the outstanding shares of PCG Mining S.A. de C.V. from a non-arm’s length party in consideration for the issue of 30 M common shares of the company. Upon completion of the transaction the company will own 100% of PCG, which is the parent holding company of Carrizal Mining, S.A. de C.V..

ON SOCIAL RESPONSIBILITY

  • No Relevant News.

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

On the image below: Sheeted quartz veining in metamorphic rocks from an orogenic gold project in Oaxaca. Picture by Jorge Cirett.

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The Mining and Exploration News in Mexico: Highlights on the Fourth Week of September, 2019.

Quartz vein displaying lattice  bladed texture

By Miguel A Heredia

During the thirty-nine week of the year (September 23th to September 29th, 2019), at least 21 press releases were announced by companies working in Mexico, with seven informing on exploration results, six disclosing deals and corporate issues, three announcing financial rounds, two communicating production results, one reporting on resources and development of their projects, one commenting on Mexican issues, and one notifying on social responsibility.  ON MEXICO ISSUES, Los Gatos mine was inaugurated in San José del Sitio, Chihuahua with an investment of USD $366M.  ON EXPLORATION, In Baja California Norte, One World Lithium announced the continuation of the phase 3 drilling program at its Salar del Diablo project. In Sonora, Ridgestone released historical assays results from its Rebeico project. In Chihuahua, Kootenay reported drilling results from its Columba project.  In Durango, Canasil reported high grade sampling results from its Nora property. In Jalisco, GoGold released drill results from its Los Ricos project. In Veracruz, Mexican Gold announced 3,000m of drilling and its exploration plan for the remainder 2019 on its Las Minas project, and Azucar Minerals released drilling results from its El Cobre project. ON MINING, Mexus Gold provided an update on its Santa Elena mine in Sonora. Azure also provided an update on the first phase small-scale mining program at its Oposura project in Sonora. ON FINANCING, Aztec Minerals applied to the TSX to extend the term of 2,551,250 common share purchase warrants (Cervantes project, Sonora). Silver Viper closed a private placement for gross proceeds of $4M (La Virginia project, Sonora). Gold Resource declared its monthly dividend for September 2019 to shareholders (Arista mine, Oaxaca).  ON RESOURCES AND DEVELOPMENT, Prime informed that the company completed a formal visit to its Los Reyes property in Sinaloa, to attend meetings with local stakeholders, to secure surface access and begin site preparation, and to initiate exploration and engineering work for the planned production phase. ON DEALS AND CORPORATE ISSUES, Advance Gold announced that a geophysical adviser was added to its exploration team (Tabasquena project, Zacatecas). Colibri Resources entered into a property option agreement with Tocvan Ventures Corp., on its Pilar property in Sonora. Consolidated Zinc completed the acquisition of a 100% interest of the Plomosas mine in Chihuahua. Vizsla entered into a definitive share purchase agreement to acquire an option on the Panuco-Copala mining camp in Sinaloa. Ridgestone entered in an agreement to acquire a 100% interest in 10 mining concessions adjacent to its Rebeico project in Sonora. ON SOCIAL RESPONSIBILITY, Fortuna Silver, through its subsidiary Minera Cuzcatlán, has invested MXP $177.2M in social programs in Oaxaca, Mexico.

 ON MEXICO ISSUES

  • Los Gatos mine was inaugurated in San José del Sitio, Chihuahua. The governor of Chihuahua State, Javier Corral, participated in the inauguration of the Los Gatos mines, located in San Jose del Sitio, Chihuahua. The mine was built with an investment of USD$ 366M among the Japanese company Dowa Mining and the American Sunshine Silver Mining company, for an estimated daily production of 2,500 tons of ore, which will be processed in the same plant with state-of-the-art technology, to obtain concentrates of Ag, Pb, and Zn. Governor Javier Corral celebrated the alliance of Japanese and American capital that occupied 1,800 people in construction and will give permanent employment to another 510 on its operation.

ON EXPLORATION

  • One World Lithium, announced the continuation of the phase 3 drilling program at its Salar del Diablo project in Baja California Norte. The phase three will consists of 3 holes adjacent to previously partly drilled holes 1, 9, and 11, and 1 hole located 50km to the south, for a total of 2,400m. Each hole has planned depths of 600m. Each hole will be drilled with a mud rotary rig that will set casing to 200 meters and then core drilled to the planned total depth of 600 meters. Objectives of the drilling program are “to determine the presence of aquifers that may contain concentrations of lithium in brines at depth; to collect representative, depth-specific groundwater samples for chemical analysis of major elements, including Li; to obtain drill core samples for analysis for drainable porosity that will assist in resource estimations; and to use borehole lithologic descriptions to identify hydrogeologic units and the stratigraphy of the basin; to help calibrate existing and future geophysical surveys; and to create a hydrogeologic model to develop a potential future Li resource”.
  • Ridgestone Mining Inc., released historical assays results from its Rebeico project in Sonora. These assays are from rock chip samples obtained by the Servicio Geológico Mexicano (SGM) at El Cobre, Tres Hermanos, Amargosa I and II, La Amargosita, and Campo Seco old workings. At El Cobre, two samples taken on the vein reported 0.8 g/t Au, 39 g/t Ag, 1.67% Cu, and 0.12% Mo over 1.18m, and 0.7 g/t Au, 50 g/t Ag, 0.51% Cu, and 0.18% Mo over 1.12m. In addition, two dump samples returned 0.5 g/t Au, 102 g/t Ag, 2.41% Cu, and 0.30% Mo, and 0.35 g/t Au, 38 g/t Ag, 2.07% Cu, and 1.22% Mo. At Tres Hermanos, highlights include 14.6 g/t Au and 23 g/t Ag over 1.30m; 8.13 g/t Au and 17 g/t Ag over 1.20m; 3.4 g/t Au, 23 g/t Ag, and 0.14% Cu over 1.90m; and 1.4 g/t Au, 137 g/t Ag, and 2.72% Cu over 1.0m. At La Amargosa I and II, 10 g/t Au and 3.48% Cu over 0.7m; 5.86 g/t Au and 1.85% Cu over 0.68m; and 2.66 g/t Au and 0.55% Cu over 0.71m. At La Amargosita, 17 g/t Au, 73 g/t Ag, and 0.45% Cu over 1.30m and one dump sample with 0.1 g/t Au, 777 g/t Ag, and 1.56% Cu. At Campo Seco, 0.1 g/t Au, 18 g/t Ag and 7.49% Cu over 0.55m.
  • Kootenay Silver Inc., reported drilling results from three holes drilled on the F Vein and five holes drilled on the I Vein at its Columba project in Chihuahua. Significant drill intersections were encountered in hole CDH-19-011 with 133 g/t Ag, 0.04% Pb, and 0.15% Zn over 11.0m, including 245 g/t Ag, 0.13 g/t Au, 0.1% Pb, and 0.3% Zn over 5.0m, and including 648 g/t Ag, 0.63 g/t Au, 0.2% Pb, and 0.6% Zn over 1.0m, on the F Vein, and 228 g/t Ag, 0.1% Pb, and 0.6% Zn over 1.2m and 102 g/t Ag, and 0.1% Zn over 1.68m on the foot wall vein; in hole CDH-19-012 with 184 g/t Ag, 0.2 g/t Au, 0.1% Pb, and 0.4% Zn over 11.0m, including 476 g/t Ag, 0.66 g/t Au, 0.3% Pb, and 1% Zn over 3.15m, including 476 g/t Ag, 0.66 g/t Au, 0.3% Pb, and 1% Zn over 3.15m, and including 755 g/t Ag, 1.16 g/t Au, 0.5% Pb, and 1.7% Zn over 1.75m on the F Vein, and three intersections on the hanging wall of 113 g/t Ag, 0.1% Pb, and 0.1% Zn over 1.35m, 699 g/t Ag, 0.4% Pb, and 0.8% Zn over 2.1m, and 113 g/t Ag, 0.1% Pb, and 0.1% Zn over 0.6m; in hole CDH-19-013 with 273 g/t Ag, 0.1% Pb, and 0.2% Zn over 4.15m on I Vein, including 697 g/t Ag, 0.15% Pb, and 0.3% Zn over 0.65m, and 328 g/t Ag, 0.1% Pb, and 0.2% Zn over 2.65m; in hole  CDH-19-014 with 261 g/t Ag, 0.3% Pb, and 0.6% Zn over 5.01m on the I Vein, and 894 g/t Ag, and 0.4% Zn over 0.42m on the hanging wall; in hole CDH-19-015 with 1,005 g/t Ag, 0.4% Pb, and 0.7% Zn over 0.3m on the I Vein; and in hole CDH-29-016 with 357 g/t Ag on the I Vein. “Drilling continues at the property with a total of 24 holes completed to date and the program being expanded from 3000 meters to approximately 4500 meters. It is anticipated that a total of 35 to 40 holes will be completed by early November with assay results continuing into December”.
  • Canasil Resources Inc., reported high grade results from 21 surface samples taken along the Candy vein, 31 samples collected from adjacent country rocks, and 12 dump samples at its Nora project in Durango. The Candy vein, an epithermal Au-Ag target, has not been previously drilled. There has been limited, historical mining of the Candy vein, and small mineralized waste dumps are present. Average of the 21 samples collected along the Candy vein is 1.69 g/t Au, 140 g/t Ag, 0.4% Cu, 1.6% Pb, and 0.6% Zn over 0.68m, with the highest Au value of 12.55 g/t Au, 12 g/t Ag, 1% Cu, 2.7% Pb, and 0.7% Zn over 0.40m, and the highest Ag value of 605 g/t Ag, 3.72 g/t Au, 0.97% Cu, 1.2% Pb, and 0.4% Zn over 1.0m. The average grade of the 12 dump samples is 1.40 g/t Au, 86 g/t Ag, 1.1% Cu, 3.4% Pb, and 1.6% Zn. These results will be interpreted to identify possible locations for subsequent drilling.
  • GoGold Resources Inc., released drilling results of four new holes drilled at Los Ricos Main Area and three new holes drilled at San Juan Area from its Los Ricos project in Jalisco. Significant drill intersections at Los Ricos Main Area were encountered in hole LRGG-19-038 with 0.72 g/t Au and 165 g/t Ag (2.92 g/t AuEq) over 21.2m, including 1.33 g/t Au and 302 g/t Ag (5.36 g/t AuEq); in hole LRGG-19-040 with 0.4 g/t Au and 115 g/t Ag (1.93 g/t AuEq) over 17.5m, including 0.89 g/t Au and 281 g/t Ag (4.64 g/t AuEq) over 4.5m; in hole LRRGG-19-041 with 1.14 g/t Au and 115 g/t Ag (2.68 g/t AuEq) over 23.3 m, including 4.6 g/t Au and 398 g/t Ag (9.91 g/t AuEq) over 5.5m; and in hole LRGG-19-042 with 0.47 g/t Au and 69 g/t Ag (1.40 g/t AuEq) over 29.2m, including 1.65 g/t Au and 224 g/t Ag (4.63 g/t AuEq) over 6.7m. At San Juan Area, the most significant drill intersections were encountered in hole LRGG-19-045 with 0.59 g/t Au and 34 g/t Ag (1.04 g/t AuEq) over 20m, including 2.92 g/t Au and 91 g/t Ag (4.123 g/t AuEq) over 3.5m; and in hole LRGG-19-046 with 0.36 g/t Au and 62 g/t Ag (1.19 g/t AuEq) over 36m, including 1.3 g/t Au and 220 g/t Ag (4.24 g/t AuEq) over 5.5m.
  • Mexican Gold Corp., announced an aggressive exploration plan for the remainder of 2019 at its Las Minas project in Veracruz, including a drill program of 3,000m. The company plans to drill test the Pueblo Nuevo, Cinco Señores TEM anomaly, Las Minillas, and El Dorado targets, and test the conceptual targets of Sub-Sill and the Mancuerna Dike Swarm for potential skarn mineralization.
  • Azucar Minerals Ltd., reported results from its ongoing drilling program at its El Cobre project in Veracruz at Norte, Villa Rica, Porvenir and Suegro targets. The most significant intervals were encountered at the Norte Target, where the hole EC-19-077 intersected 0.26 g/t Au and 0.11% Cu over 43.50m, including 0.53 g/t Au and 0.21% Cu and the hole EC-19-082 intersected 0.25 g/t Au and 0.12% Cu over 237.30m, including 0.63 g/t Au and 0.27% Cu over 44.45m, and another interval of 1.01 g/t Au and 0.33% Cu over 12.75m. At El Porvenir target, hole EC-19-078 intersected 82 g/t Au and 0.02% Cu over 12m, including 20.6 g/t Au and 0.01% Cu over 1.0m.

ON MINING

  • Mexus Gold US, provided an update on its Santa Elena mine in Sonora. The compnay informed that all systems are working properly but the Merrill Crow Au recovery plant currently in use is running at 30 gpm and producing 3Oz Au per day. Mexus is moving a new plant to Santa Elena which will have the capacity to run up to 500 gpm. This new equipment is expected to be operational in October, which allows the company to reach its long term production goal.
  • Azure Minerals Limited provided an update on the first phase small-scale mining program at its Oposura project in Sonora. Azure extracted and stockpiled an estimate of 6,100 tons of 13.4% Zn and 10.7% Pb from open pit, including 2,100 tonnes of 24% Zn and 18.3% Pb. Tonnages and grades exceed significantly the mineral resource estimate for this part of the deposit. Ore processing will start in the December quarter and will continue for 2-3 months. “Azure will produce separate Zn and Pb-Ag concentrates and expects to sell them on the spot market to locally-based metals traders or smelters, several of which have expressed strong interest in these products”.

ON FINANCING

  • Aztec Minerals Corp., applied to TSX to extend the term of an aggregate of 2,551,250 common share purchase warrants by one year from October 21, 2019 to October 21, 2020. “Each warrant entitles the holder to acquire one common share in the capital of the company at an exercise price of $0.25 per common share until the current expiry date of October 21, 2019. An aggregate of 23,750 warrants have been exercised to date and 550K warrants are held, directly or indirectly, by insiders of the company. The extension of the term of the warrants for an additional year is subject to the acceptance of TSX” (Cervantes project, Sonora).
  • Silver Viper Minerals Corp., closed a private placement for gross proceeds of $4M. Net proceeds will be used to continue exploration and development of its la Virginia project in Sonora, and for general corporate and working capital purposes.
  • Gold Resource Corporation, declared its monthly dividend of 1/6 of a cent per common share for September 2019, payable in October 23, 2019 to their shareholders (Arista mine, Oaxaca).

ON RESOURCES AND DEVELOPMENT

  • Prime Mining Corp., informed that the company completed a formal visit to its Los Reyes property in Sinaloa, to attend meetings with local stakeholders, to secure surface access and begin site preparation and to initiate exploration and engineering work for the planned production phase. The company has initiated a 5,000m trenching and surface sampling program on mineralized structures to provide valuable assay data to be used in conjunction with down drill data to update resource estimation. “The current trenching program will provide greater confidence in the conversion of these blocks to indicated resources for the upcoming resource estimate”.

ON DEALS AND CORPORATE ISSUES

  • Advance Gold Corp., announced that a geophysical adviser with over 40 years of international mining exploration experience was added to its exploration team (Tabasquena project, Zacatecas).
  • Colibri Resources Corporation, entered into a property option agreement with Tocvan Venture Corp., on its 100% owned Pilar project in Sonora. Tocvan has been granted a 60 days exclusivity period to complete a due diligence by paying Colibri $25K. If the due diligence is positive and Tocvan decide to continue the option agreement, it will have the option to earn 51% of the property over a 5 years period by issuing 2M common shares, paying CAD $100K to Colibri, 60 days after signing the final agreement, and performing CAD $250K of exploration expenditures at Pilar property during the first year. On year 2, Tocvan will pay CAD $ 50K to Colibri and will perform CAD $350K of exploration expenditures. On year 3, Tocvan will pay CAD $75K and issue 1M common shares to Colibri, and perform CAD $400K of exploration expenditures. On year 4, Tocvan will pay CAD $75K and issue 1M common shares to Colibri, and perform CAD $500K of exploration expenditures. On year 5, Tocvan will pay CAD $75K and issue 1M common shares to Colibri, and perform CAD $500k of exploration expenditures. Upon completion of these terms Tocvan will be granted a 6 month option to purchase the remaining 49% of Pilar in exchange for CAD $2M and a 2% NSR on the project, of which 1% could be sold by Colibri for a price of CAD $1M. Tocvan will operate the project during the option period.
  • Consolidated Zinc Limited, completed the acquisition of a 100% interest of the Plomosas mine in Chihuahua by acquiring the remaining 10% interest from Retec Guaru S.A. de C.V.
  • Vizsla Resources Corp., entered in a definitive share purchase agreement to acquire an option over the consolidated mineral rights, infrastructure and processing facilities comprising the large scale Panuco-Copala mining camp in Sinaloa. Vizsla has agreed to acquire all of the outstanding shares of Canam Alpine Ventures Ltd. Vizsla will acquire Canam for a total staged consideration of 18M common shares of Vizsla by issue 6M common shares on closing of the acquisition, 6.5M common shares upon definition of a resource greater than 200K Oz AuEq, and 5.5M common shares upon exercise of the option. Also, Vizsla will pay USD $700K on signing, USD $450K in the first anniversary of signing, USD $5,184,500 and work commitment of USD $3,423,000 in the second anniversary of signing, USD $6,846,000 in the third anniversary of signing, USD $8,557,500 in the fourth anniversary of signing, USD $9,269,000 in the fifth anniversary of signing, and USD $11,907,425 in the sixth anniversary of signing.
  • Ridgestone Mining Inc., entered in an agreement to purchase a 100% interest in 10 mining concessions adjacent to its Rebeico project in Sonora. These 10 mining concessions cover an area of 3,292 hectares and contain numerous artisanal old workings and mineralized outcrops. Terms of the acquisition include a cash payment of USD $83K and the issuance of 5M common shares of Ridgestone to the vendor.

ON SOCIAL RESPONSIBILITY

  • Fortuna Silver Mines Inc., through its subsidiary Minera Cuzcatlán has invested MXP $172.2M in San Jose del Progreso, Oaxaca and surrounding communities, since it started operations in 2011. One of the most outstanding projects to date is the breeding and fattening of lambs in the community of El Cuajilote. This has been successfully promoted by Compañía Minera Cuzcatlán since 2016. The company contributes with inputs and technical advice, while producers provide labor. Additionally, the suppliers of inputs are 100% local, also benefiting companies in the region. Currently 70% of 400 square meters of productive infrastructure have been installed. The amount of sheep bellies, of a target of 90, has been increased by 45% by keeping them in the feeding and reproduction program. Likewise, the percentage of births has increased from 80% to 125%. In this way, Compañía Minera Cuzcatlán makes a difference for families benefiting from this and other programs, since they receive financial support by providing inputs for food by the company and training according to the productive or reproductive season.

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

On the picture above, quartz vein with stibnite and displaying lattice  bladed texture in a prospect in San Luis Potosi, Mexico.  Photo by Miguel A Heredia.