VANCOUVER, April 3, 2020 /CNW/ – Sable Resources Ltd. (“Sable” or the “Company“) (TSXV: SAE) announces the resignation of Don Njegovan as a Director of Company. The Company thanks Don for his service as a Director over the past three years and wishes him the best in his future endeavours. Ruben Padilla has joined the Board of Directors effective immediately.
March 31, 2020 – Vancouver, British Columbia – Vangold Mining Corp (the “Company” or “Vangold”) (TSXV:VGLD) announces that William T. Gehlen has joined its Board of Directors.
By Miguel A Heredia
During the eleventh week of the year (March 9th to March 15th, 2020), at least 21 press releases were announced by companies working in Mexico, with four commenting on Mexican issues, three announcing financial rounds, three informing on exploration results, three communicating production and financial results, three disclosing deals and corporate issues, three discussing issues on social responsibility, and two reporting on resources and developments. ON MEXICO ISSUES, A local Deputy of Durango State celebrated the investment of USD $100M in the mining sector. Michoacán State breaks the mining slowdown cycle, and Fe extraction grows 8% and climbs to second place. A series of Mexican mining projects have changed ownership in recent weeks as Au and Ag prices rise. In the last five years, the female workforce in the mining sector has grown by an average of 14-15%, according to Karen Flores, General Director of the Mining Chamber of Mexico (Camimex). ON EXPLORATION, In Sinaloa, Vizsla reported drilling results from its Panuco project. In Zacatecas, Alien announced its program development for its Mexican projects. In Jalisco, GoGold released drilling results from 11 holes collared at its Los Ricos project. ON MINING, Americas Gold and Silver reported full year 2019 production and financial results (Cosala mine, Sinaloa). Santacruz suspended milling operations at its Veta Grande mine in Zacatecas. Fortuna Silver reported full year 2019 production and financial results from its San Jose mine in Oaxaca. ON FINANCING, Almaden announced a non-brokered private placement for gross proceeds of up to $2M (Ixtaca project, Puebla). SilverCrest announced a bought deal financing for gross proceeds of CAD $75M (Las Chispas project, Sonora). Mexus sold some Au produced at its Santa Elena mine in Sonora. ON RESOURCES AND DEVELOPMENT, Great Panther updated mineral resource estimate at its Guanajuato Mine Complex in Guanajuato and provided an update on its Topia mine operation in Durango. SilverCrest reported infill drilling results from its Las Chispas project in Sonora. ON DEALS AND CORPORATE ISSUES, Equinox and Leagold completed merger to create premier Americas gold producer (Los Filos, Guerrero). Pan American filed its 2019 audited annual financial statement and annual information form (La Colorada mine, Zacatecas). Premier appointed a new member to its board of Directors (Mercedes mine, Sonora). ON SOCIAL RESPONSIBILITY, Almaden opened a local water reservoir in the community of Zacatepec, nearby its Ixtaca project in Puebla. Argonaut gave scholarship number 3,000 to a student of La Colorada, Sonora. Minera San Xavier (New Gold Inc.), improves the public lighting system in Cerro de San Pedro, San Luis Potosi.
ON MEXICO ISSUES
- A local Deputy of Durango State, celebrated the investment of USD $100M in the mining sector. It means greater economic development and especially the generation of a large number of well-paid jobs. For this reason, the Deputy said, it is necessary for the federal government to develop a state mining policy, as it is currently done in Durango that allows recovering the international competitiveness that characterized Mexico during the first decade of this millennium.
- Michoacan State, breaks the mining slowdown cycle, and Fe extraction grows 8% and climbs to second place. According to the Economic Information Bank, the entity totaled 2.6M tonnes in 2019, which meant an increase of 8% with respect to the 2.4M tonnes reported during 2018.
- A series of Mexican mining projects, have changed ownership in recent weeks as Au and Ag prices rise. For instance, Magna Gold acquired the San Francisco mine in Sonora from Alio Gold and is evaluating partnership opportunities to advance its suspended Ana Paula project in Guerrero; GR Silver Mining acquired Plomosas in Sinaloa from First Majestic; GoGold recently acquired 5 concessions around its Los Ricos project in Jalisco; and Fresnillo plc exercised an option to acquire the Naranjillo property in Guanajuato from Plata Latina. These latest agreements show that Mexico continues to generate a decent level of interest in mergers and acquisitions.
- Karen Flores, General Director of the Mining Chamber of Mexico (Camimex), announced that In the last five years, the female workforce in the mining sector has grown by an average of 14-15%. Currently, 60 thousand women work in this industry in the country, which represents 16% of the total of its workers. In 2019, 3,153 new places were generated for them.
- Vizsla Resources Corp., reported drilling results from its Panuco project in Sinaloa. Significant interception were encountered in hole AMS-20-06 with 1.25 g/t Au and 264 g/t Ag (364 g/t AgEq) over 3.55m, including 2.54 g/t Au and 474 g/t Ag (677 g/t AgEq) over a width of 1.3m; and hole AMS-20-04 with 2.45 g/t Au, 45 g/t Ag, 1.2% Pb, and 3.0% Zn (404 g/t AgEq) over 2.6m. These drilling results are the first set from an aggressive program of 14,500m that will continue throughout 2020.
- Alien Metals Limited, announced its program development for its Mexican projects. The company has planned a detail exploration drilling program and has submitted applications for drill permits at its Los Campos and San Celso projects in Zacatecas. At its Donovan 2 Cu-Au VMS target in Zacatecas, it also is planning a ground magnetic survey to generate follow-up work and drill targets.
- GoGold Resources Inc., released drilling results from eleven holes collared at its Los Ricos project in Jalisco: two at San Juan and nine at the Main area. Significant drill intersections were encountered in hole LRGG-20-106 (San Juan Area) with 1.35 g/t Au and 118 g/t Ag (2.92 g/t AuEq or 219 g/t AgEq) over a width of 21m, including 2.83 g/t Au and 217 g/t Ag and (5.73 g/t Au or 430 g/t AgEq) over a width of 9.5m; hole LRGG-20-102 (Main Area) with 1.05 g/t Au and 156 g/t Ag (3.13 g/t AuEq or 235 g/t AgEq) over a width of 10.7m; and hole LRGG-20-101 (San Juan Area) with 0.54 g/t Au and 116 g/t Ag (2.08 g/t AuEq or 156 g/t AgEq) over a width of 33.8m, including 2.0 g/t Au and 467 g/t Ag (8.22 g/t AuEq or 617 g/t AgEq) over a width of 5m.
- Americas Gold and Silver Corporation, reported full year 2019 production and financial results. Consolidated results indicate a total ore processed of 701.8K tonnes of 70 g/t Ag, 2.1% Pb, 3.4% Zn to produce 1.16M Oz Ag, 26.2M Lb Pb, and 43.3M Lb Zn, with a cash cost of $4.61 per Oz Ag and AISC of $12.71 per Oz Ag. The company reported revenues of $58.4M and a net loss of $34.2M. The Cosala mine in Sinaloa successfully executed its production plans for the year 2019, increasing mill tonnage to over 1,750 tonnes per day, and increasing production of precious and by-product metals.
- Santacruz Silver Mining Ltd., suspended milling operations at its Veta Grande mine in Zacatecas for approximately six months to facilitate plant and new tailings storage facility upgrades.
- Fortuna Silver Mines Inc., reported Q4 and full year 2019 production and financial results from its San Jose mine in Oaxaca. During the period Q4, 2019, it milled 273,066 tonnes of 249 g/t Ag and 1.5 g/t Au, recovering 91% for both metals to produce 2M Oz Ag and 12K Oz Au, at cash cost of $6.8 per Oz AgEq and AISC of $10.5 per Oz AgEq. For the full 2019 year, the company milled 1,068,722 tonnes of 252 g/t Ag and 1.57 g/t Au, recovering 91% for both metals, to produce 7.9M Oz Ag and 48.9K Oz Au, at cash cost of $6.70 per Oz AgEq and AISC of $9.8 per Oz AgEq.
- Almaden Minerals Ltd., announced a proposed non-brokered private placement to raise gross proceeds of up to $2M. Net proceeds will be used for permitting activities related to its Ixtaca project in Puebla, and for general corporate purposes. Closing of the offering is anticipated to be on or about March 26, 2020.
- SilverCrest Metals Inc., announced a bought deal financing for gross proceeds of CAD $75M. Net proceeds will be used to continue the exploration and development of its Las Chispas project in Sonora and for general working capital and administrative purposes.
- Mexus Gold US, sold 16.5 out of 125 Oz Au produced at its Santa Elena mine in Sonora, at a price of USD $1,600 per Oz. Additional sales will be occurring shortly.
ON RESOURCES AND DEVELOPMENT
- Great Panther Mining Limited, updated mineral resource estimate at its Guanajuato Mine Complex in Guanajuato. At Guanajuato mine, measured + indicated resources are 343,736 tonnes of 204 g/t Ag and 1.69 g/t Au to contain 2.25M Oz Ag and 8.7K Oz Au (3.75M Oz AgEq at a grade of 339 g/t AgEq). Inferred resources are 208,608 tonnes of 168 g/t Ag and 2.32 g/t Au to contain 1.13M Oz Ag and 15.6K Oz Au (2.37M Oz AgEq at a grade of 354 g(t AgEq). At San Ignacio mine, measured + indicated resources are 386,417 tonnes of 159 g/t A and 3.03 g/t Au to contain 1.97M Oz Ag and 37.6K Oz Au (4.98M Oz AgEq at a grade of 401 g/t AgEq). Inferred resources are 501,870 tonnes of 149 g/t Ag and 2.69 g/t Au to contain 2.4M Oz Ag and 43.4K Oz Au (5.88M Oz AgEq at a grade of 364 g/t AgEq). In addition, the company reported that it has temporarily ceased tailing deposition at its Topia mine in Durango. Great Panther is in the process of permitting a Phase III of a tailings storage facility (TSF) site. Meanwhile, it is reviewing alternatives to store tailings (permanent or transitionary) until phase III TSF is permitted. The company expects it is obtained in the within the next 3 or 6 months.
- SilverCrest Metals Inc., reported infill drilling results from its Las Chispas project in Sonora. Highlights include hole UBV19-30 with 81.6 g/t Au and 6,619 g/t Ag (12,740 g/t AgEq) over a true width of 2.1m; hole BV20-22 with 101.45 g/t Au and 5,413 g/t Ag (13,022 g/t AgEq) over a true width of 1.1m; and hole BV20-18 with 45.8 g/t Au and 2,396 g/t Ag (5,831 g/t AgEq) over a true width of 1.6m. The drilling results have nearly doubled the size of the high-grade footprint for the Babi Vista Vein in the Babicanora Area.
ON DEALS AND CORPORATE ISSUES
- Equinox Gold Corp., and Leagold Mining Corporation, completed merger to become in one of the world´s top gold producing companies. The concurrent USD $670M debt and equity financings associated with the merger have also been completed (Los Filos mine, Guerrero).
- Pan American Silver Corp., filed its 2019 audited annual financial statement and annual information form (La Colorada mine, Zacatecas).
- Premier Gold Mines Limited, appointed a new member to its board of Directors (Mercedes mine, Sonora).
ON SOCIAL RESPONSIBILITY
- Almaden Minerals Ltd., along with the Federal Government Water Authority (CONAGUA), opened a local water reservoir in the community of Zacatepec, nearby its Ixtaca project in Puebla. This water reservoir will be used for irrigation to boost the current harvests of the community.
- Argonaut Gold Inc., gave the scholarship number 3,000 to a student of la Colorada, Sonora. In this community, the company has maintained an academic scholarship program since 2011. The General Manager of the La Colorada mine assured that the company’s commitment is fulfilled in coherence with the vision of social responsibility where the education of children and young people is a priority.
- Minera San Xavier (New Gold Inc.), has invested heavily in the infrastructure of the municipality of Cerro de San Pedro, as part of the social actions contemplated in its Comprehensive, Inclusive and Participatory Mine Closure Plan. The company is improving the public lighting system in Cerro de San Pedro, San Luis Potosi, with solar luminaries, which have a positive impact on public safety and tourist activities. These solar luminaries count with great potential for energy savings, reducing electricity consumption and maintenance costs, without compromising the quality of lighting services.
Content like what you have just read can be seen at https://gambusinoprospector.com/ and at LinkedIn’s Mexico Mineral Exploration Group.
On the picture above, a phreatic breccia in an epithermal hot spring prospect in Guanajuato, Mexico. Photo by Miguel A Heredia.
Mn-Silica breccia hosted in ignimbritic rhyolites
By Miguel A Heredia
During the ninth week of the year (February 24th to March 1st, 2020), at least 33 press releases were announced by companies working in Mexico, with seven announcing financial rounds, seven commenting on Mexican issues, five informing on exploration results, five reporting on resources and developments, four communicating production and financial results, four disclosing deals and corporate issues, and one discussing issues on social responsibility. ON MEXICO ISSUES, Majors are called to receive the Mining Fund. The Technical Committee of the Federal Mining Fund allocated resources for 16 projects in the states of Chihuahua, Coahuila, Durango and Guerrero. The Municipalities of Aquiles Serdán and Ocampo in the state of Chihuahua will receive MXP $18.6M from the Mining Fund. The President of Mexico, Andres Manuel López Obrador, was requested by workers of Minera Cosalá to end the illegal strike that affects that mine site. Oaxaca’s mining potential could be profiled as one of the most important in Mexico. The official spokesperson of Esperanza Silver de Mexico stated that the company will comply 100% with Mexican standards not only with the community of Tetlama, but throughout the Municipality of Temixco, Morelos. In recent years, Mexico has registered the suspension of dozens of mining projects, whose assets have been victims of price volatility, licensing obstacles, adverse political factors, and community opposition. ON EXPLORATION, In Sonora, Colibri announced the commencement of its initial 5-holes diamond drilling program at its Evelyn project, and Silver Viper released drilling results from its El Rubi project. In Durango, Chesapeake provided an update on the exploration program at its Crisy and San Javier prospects located in the vicinity of its Metates project. In Jalisco, GoGold released drilling results from nine holes collared at its Los Ricos project. In the State of Mexico, Impact Silver reported sampling results from its Chapanial project. ON MINING, Telson provided an update on its mine operation at Campo Morado, Guerrero. Argonaut, Avino, and Golden Minerals reported Q4 and full year 2019 production and financial results from their Mexican operations. ON FINANCING, Aztec announced the re-pricing of a package of stock options of the company (Cervantes project, Sonora). GoGold closed a bought deal offering for gross proceeds of approximately CAD $25M (Los Ricos project, Jalisco). Santacruz closed the first tranche of a non-brokered private placement for gross proceeds of CAD $734,150 (Veta Grande, Zacatecas). Ridgestone closed the final tranche of its private placement financing for gross proceeds of $339,549.90 (Rebeico project, Sonora). Gold Resource declared its February 2020 monthly dividend to its shareholders (Arista mine, Oaxaca). Minera Alamos received approval from its shareholders for final phase of its Santana, Sonora project financing for CAD $5M. Riverside announced the spin-out of its Peñoles project in Durango. ON RESOURCES AND DEVELOPMENT, First Majestic released infill drilling results from it’s the Ermitaño project in Sonora. Prime Mining reported surface trenching, road cuts, and adits sampling results from its Los Reyes project in Sinaloa. Sonoro announced its plan to expand its drilling program at its Cerro Caliche project in Sonora. Fresnillo and its JV partner Mag Silver provided an update on its Juanicipio project in Zacatecas. ON DEALS AND CORPORATE ISSUES, Radius Gold and pan American Silver included Palmillas property within the Amalia JV project in Chihuahua. Oroco informed that its Board of Directors has approved the Altamura Copper Corp acquisition (Santo Tomas project, Sinaloa). Silver Spruce announced management changes and appointed its new President, CEO and Director (Pino de Plata project, Chihuahua). Fresnillo plc exercised its option to purchase Plata Latina´s Naranjillo property in Guanajuato. ON SOCIAL RESPONSIBILITY, Grupo Peñoles and UNAM conducted a Health Day in Zacatecas.
ON MEXICO ISSUES
- Majors of 23 of the 38 Municipalities of Coahuila state are called to receive the Mining Fund. An urgent request was made to 23 Majors of Municipalities benefited with resources from the Mining Fund in order to make this benefit effective. To achieve this objective, the projects in which the resources will be applied must be presented.
- The Director of the Mining Fund of the Secretariat of Economy, María del Socorro Gómez Leyja, indicated that the Technical Committee of the Federal Mining Fund allocated resources for 16 projects in the states of Chihuahua (MXP $ 18.6M), Coahuila (MXP $ 3.1M), Durango (MXP $ 7.6M) and Guerrero (MXP $ 4.6M).
- MXP $18.6M from the Mining Fund was allocated to Chihuahua. The Municipalities of Aquiles Serdán and Ocampo in the state of Chihuahua, will have resources from the Mining Fund that will be used for paving, dome, well and water network, thanks to the approval by the Technical Committee of the Mining Fund.
- The President of Mexico, Andres Manuel López Obrador (AMLO) was requested by workers of Minera Cosalá to end the illegal strike that affects that mine site. The same workers, said to AMLO that the leader of its Union affiliated with the CTM, negotiated the collective work contract with the company Minera Cosalá SA de CV, and determined that the operation was normal and there were no irregularities on the part of the company. However, workers close to the senator of the Morena party and mining leader Napoleón Gómez Urrutia, asked the company for salaries higher than normal. They mentioned that the mine has been working since 2003 and they have a safe job for at least six more years, in excellent working conditions and that their only desire is to work, regardless of which Union won the collective agreement.
- Oaxaca´s mining potential, according to specialists, government and private capital, could be profiled as one of the most important in Mexico, to generating jobs and strengthening the regional economy of indigenous communities. Currently the state has not been explored outside the mining districts and known mineralized areas, but contains promising areas for Au, Ag, Cu, Pb, Zn, Sb, and non-metallic minerals such as micas, zeolites, marble, travertine, and granite among others. Data from some civil organizations indicate that Oaxaca’s mining production represents 0.72% of the total national value, with Ag first, second Au and third Pb.
- Ricardo Sierra Oteiza, official spokesperson of the Esperanza project in Morelos State, said that through the new model of social end environmentally responsible mining, the company Esperanza Silver de Mexico will comply 100% with Mexican standards not only with the community of Tetlama, but throughout the Municipality of Temixco, Morelos. In addition, he stressed that there will be an investment of over USD $400M in the 10 years that the company plans to carry out work in the state.
- In recent years, Mexico has registered the suspension of dozens of mining projects, whose assets have been victims of price volatility, licensing obstacles, adverse political factors, and community opposition. BNamericas accounts for 59 Mexican projects suspended in its database, compared to 95 active projects. Of the 11 suspended projects for which financial information is available, combined capital expenditure totals USD $ 2.4B.This compares to 42 active projects whose combined capital expenditure amounts to USD $ 14.2B. The greater projections for Au and Ag, along with political changes at the state level, have improved the prospects for the resumption of some of the suspended projects. However, the depressed prices of Cu and Zn and not minor problems with obtaining permits and other legal aspects continue to put important obstacles on others. Some of the largest suspended projects are La Verde in Michoacan, Sierra Mojada in Coahuila, Angangueo in Michoacan, Ixtaca in Puebla, Ana Paula in Guerrero and Esperanza in Morelos. Other suspended projects are Monterde in Sonora, Caballo Blanco in Veracruz, San Antonio, Baja California Sur, and La Bolsa in Sonora.
- Colibri Resource Corporation, announced the commencement of its maiden drill program at its Evelyn project in Sonora. The initial 5-diamond holes drilling program will be focused on two mineralized corridors named Cerro Rojo and El Sahuaro and is expected to be completed in three weeks.
- Silver Viper Minerals Corp., provided drilling results from its El Rubi project in Sonora. All holes encountered mineralized zones, with several significant interceptions in hole LV20-217 with 4.45 g/t Au and 401 g/t Ag (10.18 g/t AuEq or 713 g/t AgEq) over a true width of 4.56m, including 15.55 g/t Au and 1,436 g/t Ag (36.06 g/t AuEq or 2,524 g/t AgEq) over a true width of 1.14m; 1.79 g/t Au and 91 g/t Ag (3.1 g/t AuEq or 217 g/t AgEq) over a true width of 7.41m, including 7.49 g/t Au and 586 g/t Ag (15.86 g/t AuEq or 1,110 g/t AgEq) over a true width of 0.57m; and 2.05 g/t Au and 46 g/t Ag (2.70 g/t AuEq or 189 g/t AgEq) over a true width of 6.27m, including 8.44 g/t Au and 201 g/t Ag (11.3 g/t AuEq or 791 g/t AgEq) over a true width of 1.14m. Hole LV20-218 also intersected several mineralized zones with 5.82 g/t Au and 530 g/t Ag (13.39 g/t AuEq or 937 g/t AgEq) over a true width of 1.89m, including 14.4 g/t Au and 1,253 g/t Ag (32.3 g/t AuEq or 2,261 g/t AgEq) over a true width of 0.63m; 9.15 g/t Au and 569 g/t Ag (17.28 g/t AuEq or 1,210 g/t AgEq) over a true width of 5.04m, including 22.63 g/t Au and 1,431 g/t Ag (43.08 g/t AuEq or 3,015 g/t AgEq) over a true width of 1.89m. The El Rubi mineralized structure has now been intercepted on seven sections for a total 300m of strike extent.
- Chesapeake Gold Corp., provided an update on the exploration program at its Crisy and San Javier prospects, located 15Km south and 12 km southeast respectively from its Metates project in Durango. These both projects cover several zones of Au-Ag mineralization along regional, deep-seated northwest-trending fault zones, associated with intermediate intrusive rocks that have altered the enclosing sedimentary rocks over an area more than 15 km in diameter. At Crisy, Chesapeake competed 4 trenches totaling 350m in length and returned 1.1 g/t Au and 10 g/t Ag over 57m; 1 g/t Au and 10 g7t Ag over 11m; 1.1 g/t Au and 33 g/t Ag over 12m; and 2.2 g/t Au and 29 g/t Ag over 7m. In addition, an initial 15km IP survey is underway over the trenched area at Crisy and preliminary results correlate well with the Au-Ag mineralization and suggest that the outcropping quartz bx zone extend to over 200m depth. It also indicates that the anomaly is continues along strike and remains open. The IP survey also defined a large NW-SE trending high chargeability anomaly about 200m to the SW of the bulldozer trenching. The IP survey indicates a more than 500m long by 500m wide on which limited sampling has returned 1.2 g/t Au over 4m wide, and 1 g/t Au and 13 g/t Ag over 5m wide. Four Km to the NW of the area of bulldozer trenching, multiple quartz structures within a corridor over 800m long by 200ms wide and with 150m of vertical extent were identified returning 1 g/t Au over 9m wide; 0.8 g/t Au over 12m; and 3.1 g/t Au and 10 g(/t Ag over 1.3m wide. Regional exploration has now identified several distinct target areas hosting quartz veins, bx and local stockwork along the 7 kilometer long hydrothermal system at Crisy. At San Javier, the company identified a 1.2km long, high-grade Au-Ag quartz vein structures over 300m in elevation. Channel sampling on these structures returned encouraging results as 9.6 g/t Au and 143 g/t Ag over 2.8m; 3.3 g/t Au and 391 g/t Ag over 1m; 2.3 g/t Au and 18 g/t Ag over 1.4m; and 2.1 g/t Au and 113 g/t Ag over 1m. Trenching and IP survey is being carried out on San Javier to test the potential for disseminated Au hosted in highly altered intrusive rocks.
- GoGold Resources Inc., presented drill results from nine holes collared at its Los Ricos project in Jalisco. Significant drill intersections were encountered in hole LRGG-20-100 with 1.51 g/t Au and 204 g/t Ag (4.23 g/t AuEq or 317 g/t AgEq) over 17.3m, including 6.56 g/t AuEq or 492 g/t AgEq over 6.9m; hole LRGG-20-98 with 1.78 g/t Au and 319 g/t Ag (452 g/t AgEq) over 7.5m; and hole LRGG-20-93 with 1.27 g/t Au and 113 g/t Ag (2.78 g/t AuEq or 208 g/t AgEq) over 19m. GoGold is undertaking two drilling and exploration projects at its Los Ricos property: the South Project began in March 2019 and includes the ‘Main’ area, which is focused on drilling around a number of historical mines including El Abra, El Troce, San Juan, and Rascadero. The South Project also includes the Cerro Colorado and Las Lamas targets. The North Project was launched this month and includes the Monte del Favor, Salomon, La Trini, and Mololoa targets.
- Impact Silver Corp., reported channel sampling results from its Chapanial project, located 1.7Km to the north along the projection of the La Faly vein system. Significant sampling results include 97.5 g/t Au, 98 g/t Ag, 0.25% Pb, and 0.10% Zn over a true wide (TW) of 0.8m; 18.25 g/t Au, 75 g/t Ag, 0.3% Pb, and 0.08% Zn over a TW of 0.20m; 8.98 g/t Au, 105 g/t Ag, 5.4% Pb, and 0.1% Zn over a TW of 0.3m, and 8.53 g/t Au, 498 g/t Ag, 0.1% Pb, and 0.04% Zn over a TW of 0.4m. The vein at El Chapanial area is hosted in interbedded shales and volcanics and is associated with a major fault structure which hosts a sulphide bearing polymictic breccia up to 8m in width.
- Telson Resources Corporation, provided an update on its mine operation at Campo Morado in Guerrero, which was brought back into production last January 26, 2020. Since the re-start through to February 22, 2020, the company has milled 40,839 tonnes to produce approximately 3,151 tonnes of Zn concentrate with grades of 46.3% Zn, 498 g/t Ag, and 0.90g/t Au, and 636 tonnes of Pb concentrate with grades of 21.7% Pb, 4.55% Cu, 636 g/t Ag, and 3.66 g/t Au. Average recoveries achieved are 71.7% Zn, 32.2% Pb, 45.4% Ag, and 13.1% Au.
- Argonaut Gold Inc., reported Q4 and full year 2019 production and financial results from its Mexican operations. It also provided 2020 production and cost guidance. At its El Castillo mine in Durango, Argonaut mined in Q4 2019, 1,890,000 tonnes of 0.52 g/t Au to produce 13.6K Oz Au and 21K Oz Ag (13.9K Oz GEOs), at a cash cost of USD $1,264 per Oz Au sold. For the full year, it mined 8,914,000 tonnes of 0.41 g/t Au to produce 65.1K Oz Au and 102.3K Oz Ag (66.5K GEOs), at a cash cost of USD $1,030 per Oz Au sold. For the Q4, 2019, the company mined 2,460,000 tonnes of 0.35 g/t Au at its San Agustin mine in Durango to produce 19.86K Oz Au and 85.45K Oz Ag (21K GEOs) at a cash cost of USD $829 per Oz Au sold. For the full year, it mined 8,453,000 tonnes of 0.38 g/t Au to produce 61.8K Oz Au and 219.5K Oz Ag (64.77K GEOs), at a cash cost of USD $842 per Oz Au sold. At its La Colorada mine in Sonora, during the period Q4 2019, the company produced 1,115,000 of 0.49 g/t Au to produce 12.14K Oz Au and 35.86K Oz (12.62 GEOs) at a cash cost of USD $879 per Oz Au sold. For the full year 2019, it mined 4,676,000 tonnes of 0.51 g/t Au to produce 53.8K Oz Au and 159.7K Oz Ag (55.71 GEOs) at a cash cost of USD $884 per Oz Au sold. Argonaut also provide a 2020 production and cost guidance and plans to produce at El Castillo Complex between 115-120K GEOs at a cash cost of USD $900-1,000 per Oz Au sold, and between 60-65K GEOs at a cash cost of USD $900-1,000 per Oz Au sold. Argonaut plans to invest between USD $40-$50M (USD $12-16M at El Castillo Complex, USD $17-20 at La Colorada, and the rest between Magino & Cerro del Gallo).
- Avino Silver & Gold Mines Ltd., reported Q4 and full year 2019 production and financial results from its Avino mine in Durango. In Q4 2019, the company processed 107,310 tonnes from its Avino mine of 51 g/t Ag, 0.64 g/t Au, and 0.62% Cu, recovering 87%, 76%, and 89% respectively to produce 153.6K Oz Ag, 1,676 Oz Au, and 1.29M Lb Cu, for a total of 495.5K Oz AgEq. From its San Gonzalo mine, it processed 2,908 tonnes of 53 g/t Ag and 0.38 g/t Au, recovering 78% and 72% respectively, to produce 4,106 Oz Ag and 26 Oz Au for a total of 6,964 Oz AgEq. From its Historic Above Ground Stockpile, Avino processed 78,218 tonnes of 51 g/t Ag, 0.25 g/t Au, and 0.18% Cu, recovering 50%, 53%, and 31% respectively, to produce 63K Oz Ag, 330 Oz Au, and 96K Lb Cu for a total of 106.2K Oz AgEq. For the full year 2019, the company processed from its Avino mine, 427,147 tonnes of 44 g/t Ag, 0.45 g/t Au, and 0.46% Cu, recovering 85%, 73%, and 86% respectively, to produce 3K Oz Ag, 4,473 Oz Au, and 4.56M Lb Cu for a total of 1.66M Oz AgEq. From its San Gonzalo mine, it processed 56,179 tonnes of 118 g/t Ag and 0.46 g/t Au, recovering 69% and 66%, to produce 153.4K Oz Ag and 580 Oz Au for a total of 215.1K Oz AgEq. From its Historic Above Ground Stockpile, the company processed 306,334 tonnes of 55 g/t Ag, 0.36 g/t Au, and 0.18% Cu, recovering 54%, 53%, and 35% respectively, to produce 295.2K Oz Ag, 1,859 Oz Au, and 407K Lb Cu, for a total of 525.8K Oz AgEq.
- Golden Minerals Company, reported full year 2019 results from its Mexican operations. It reported revenue of USD $7.7M and a net operating margin of USD $5.3M in 2019. Expenditures during 2019 totalized USD $11.4M and a cash and equivalents balance of USD $4.6M. Cash inflows during 2019 totaled USD $12.7M.
- Aztec Minerals Corp., announced the re-pricing of 200K stock options of the company from $0.25 to $0.12 per common share, and a total of 1,950,000 stock options of the company from $0.35 to $0.105 per common share (Cervantes project, Sonora).
- GoGold Resources Inc., closed a bought deal offering for gross proceeds of approximately CAD $25M. Net proceeds will be used to fund additional exploration on its Los Ricos project, Jalisco, and particularly at the Monte del Favor target, and for corporate development, and general corporate purposes.
- Santacruz Silver Mining Ltd., closed the first tranche of a non-brokered CAD $3M private placement to raise gross proceeds of CAD $734,150. Net proceeds will be used for general working capital and for corporate purposes (Veta Grande project, Zacatecas).
- Ridgestone Mining Inc., closed the final tranche of a private placement financing for gross proceeds of $339,549.90. Net proceeds will be used for ongoing working capital requirements relating to its Rebeico project in Sonora. In total, the company raised gross proceeds of $1,051,801.95in the financing. Ridgestone also announced that it has entered into shares for debt settlement for the aggregate amount of $105K due to Leede for consulting services fees accrued pursuant to a consulting agreement between Ridgestone and Leede dated Nov 1, 2019.
- Gold Resource Corporation, declared its February 2020 monthly dividend of one third of a cent per common share to its shareholders (Arista mine, Oaxaca).
- Minera Alamos Inc., received approval from its shareholders for final phase of its Santana, Sonora project financing for CAD $5M. It is working on completing final documentation for execution no later than the end of Q1 2020.
- Riverside Resources Inc., announced that its board of directors approved a spin-out of its Peñoles project in Durango to its shareholders by way of a share capital reorganization effected through a stationary plan of arrangement. Peñoles property is wholly owned by its subsidiary Capitan Mining Inc. Under the arrangement, Riverside will distribute the common shares of Capitan to Riverside´s shareholders.
ON RESOURCES AND DEVELOPMENT
- First Majestic Silver Corp., released infill drilling results from it’s the Ermitaño project, located 4km away from the company´s producing Santa Elena mine in Sonora. Drilling highlights include the following drill intersections: hole EW-19-67 with 12.84 g/t Au and 46 g/t Ag (1,106 g/t AgEq) over 10.8m; hole EW-19-74 with 9.46 g/t Au and 383 g/t Ag (1,164 g/t AgEq) over 6.4m; hole EW-19-85 with 31.63 g/t Au and 459 g/t Ag (3,068 g/t AgEq) over 2.4m; hole EW-19-91 with 11.61 g/t Au and 45 g/t Ag (1,003 g/t AgEq) over 13m; hole EW-19-103 with 16.37 g/t Au and 111 g/t Ag (1,462 g/t AgEq) over 7.7m; hole EW-19-111 with 17.98 g/t Au and 79 g/t Ag (1,562 g/t AgEq) over 4.5m; and hole EW-19-113 with 14.22 g/t Au and 130 g/t Ag (1,302 g/t AgEq) over 9.1m. Next month, the company expects to present an updated resource estimate for it’s the Ermitaño project. First Majestic is planning to drill 15,000m in 50 drill holes for resource expansion. It is also working on several engineering studies for detailed mine design and initial production. It expects to complete 3,800m of underground development in 2020, to reach the mineralized area and prepare five production levels.
- Prime Mining Corporation, presented surface trenching, road cuts and adits sampling results from the El Zapote South and El Zapote North target areas within its Los Reyes project in Sinaloa. Significant sampling results are 6.75 g/t Au and 58 g/t Ag over 39m, including 9.88 g/t Au and 62 g/t Ag over 18m; 7.76 g/t Au and 80 g/t Ag over 12m, including 48.3 g/t Au and 117 g/t Ag over 1.5m; 6.21 g/t Au and 697 g/t Ag over 7.5m, including 14.4 g/t Au and 1,875 g/t Ag over 1.5m. This sampling is part of the initial phase of exploration designed to better map the surface expression of the mineralized structures and integrate the results into a new resource model, currently underway.
- Sonoro Metals Corp., announced the plan to complete the assessment of 17 zones of Au mineralization identified at its Cerro Caliche project in Sonora, with the purpose of increase the current 201K Oz AuEq resource. The compnay plans to carry out a combined RC and core drill program in several phases for up to 50,000m. Phase III of this program will commence in March and will consists of 10,000m of drilling. In Phase I and II, a total of 10,328m were drilled in 96 holes.
- Fresnillo plc and its JV partner Mag Silver, provided an update on its Juanicipio project in Zacatecas. Mine construction at Juanicipio project is well underway, detailed engineering is nearing completion, and all major process equipment has been purchased and received on site. Over 25Km of underground development has been completed to date. Pre-operative CAPEX has increased by 11.4% from USD $395M to USD $440M. Production is expected to start in mid-2020 with initial production stopes to be processed at the Fresnillo beneficiation plant from June 2020 pending completion of the Juanicipio plant. Total average annual anticipated production has been estimated in 11.7M Oz Ag, 43.5K Oz Au, with an initial life of mine (based on Indicated Resources only) of 12 years. Additional years of production expected to be supported by the current Inferred Resources, which are being converted into the Indicated category. Further exploration opportunities exist in the JV license area with potential to scale-up operations in the future. Commissioning of the flotation plant will be underway mid-2021. Exploration is ongoing on the property with the intention to increase the deeper resources and targeting new veins.
ON DEALS AND CORPORATE ISSUES
- Radius Gold Inc., declared that Pan American Silver Corp., has elected to exercise a right to include the 800 Has Palmillas property to its Amalia JV project in Chihuahua. Palmillas contains multiple exploration targets, including high grade Au-Ag mineralization, 1.8km away and along strike on the San Pedro Zone.
- Oroco Resource Corp., informed that its Board of Directors approved the acquisition of 100% interest of Altamura Copper Corp. Closing of the acquisition is expected to occur on March 02, 2020. Oroco has to issue 39.8M shares of the company to Altamura shareholders. Oroco also confirmed the appointment of its new President effective on March 01, 2020.
- Silver Spruce Resources Inc., announced management changes and appointed its new President, CEO, and Director, effective March 01, 2020 (Pino de Plata project, Chihuahua).
- Fresnillo plc, exercised its option to purchase Plata Latina´s Naranjillo property in Guanajuato. The Naranjillo Project is a grassroots epithermal Ag-Au discovery made by the Company in 2012 and is located in the Mexican Silver Belt, approximately 35 km southeast of the Guanajuato mining district. The transaction and transfer of the property was closed on February 24, 2020.
ON SOCIAL RESPONSIBILITY
- Minera Madero (Grupo Peñoles) and National Autonomous University of Mexico (UNAM), conducted a Health day in Zacatecas. At least one thousand people will benefit from the Fourth Health Day, opened this week by Grupo Peñoles and the UNAM. Minera Madero, as a host company, made its facilities available to serve the residents of the communities of Francisco I. Madero, Noria de Gringos, El Maguey, Rancho Nuevo, San Antonio de los Negros, Cieneguillas, Morelos and the Ejido Morelos in specialties such as dentistry, optometry and psychology.
Content like what you have just read can be seen at https://gambusinoprospector.com/ and at LinkedIn’s Mexico Mineral Exploration Group.
On the picture above, a Mn-silica Bx in an epithermal system prospect in Chihuahua, Mexico. Photo by Miguel A Heredia.
By Jorge Cirett
During the 8th week of the year (February 17th to February 23rd, 2020), at least 35 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, the Sonora Economy Secretariat remarked that several investments are to strengthen the mining industry in 2020. Camimex pointed that mining companies are to invest more than US$200 M in exploration during 2020. Grupo Mexico is to return to the government the mining concession on which the disaster struck Pasta de Conchos mine is located. Camimex is to pursue its “zero accidents” goal. ON EXPLORATION, in Sonora, Colibri Resources has received the permit to drill at the Evelyn project; Riverside Resources reported on field work and sampling at Los Cuarentas; Aloro received a new drilling permit for its Los Venados project. In Chihuahua, Kootenay Silver commenced the phase II drilling program at its Columba project. In Durango, Commander Resources reported on a geophysical survey at Pedro’s project. In Zacatecas, Excellon Resources informed on the exploration status of its Evolución project. In Guanajuato, Vangold secured land access and land use permits on its El Pinguico project. In Jalisco, GoGold Resources launched a second exploration project at Los Ricos District in Jalisco: Monte El Favor. ON MINING, Starcore International, Americas Gold and Silver, Torex Gold, First Majestic Silver, Pan American Silver and Fortuna Silver reported Q4 and full year 2019 financial and/or production results. ON FINANCING, Hecla Mining is to redeem $475 M of 7.25% senior notes. Canuc Resources, San Marco Resources and Ridgestone Mining closed various stages of non-brokered private placements for $850 K, C$784.8 K and $715.2 K, respectively. Kootenay Silver is now on the 2020 TSX Venture 50tm. ON RESOURCES AND DEVELOPMENT, Golden Minerals announced promising results from metallurgical test work on concentrates from its Velardeña property. Excellon informed on exploration results on its Platosa mine in Durango. SilverCrest Metals announced a new discovery of a high-grade zone on another vein of the Babicanora area of its Las Chispas property in Sonora. Coeur Mining and Alamos Gold reported mineral reserves and resources to the end of 2019, including figures from Palmarejo (Chihuahua) and the Mulatos District (Sonora), respectively. Goldplay Exploration provided an update on drilling at San Marcial, Sinaloa. ON DEALS AND CORPORATE ISSUES, Tamino Minerals filed a law suit against an individual, in Sonora. Telson informed on the resignation of its CEO, Jose Antonio Berlanga, and the appointment of Ralph Shearing as interim CEO. Sonoro financing discussions were interrupted by the Coronavirus outbreak in China. Mexican Gold and New Found Gold terminated their binding agreement for the acquisition of New Found Gold. GoGold entered into an agreement to acquire The Monte del Favor project in the Los Ricos District in Jalisco. ON SOCIAL RESPONSIBILITY. Fresnillo PLC supports three teams in a robotic regional fair. Grupo Mexico supports social and infrastructure projects in Sombrerete, Zacatecas, with over 300 activities that benefit 3,00 inhabitants. Fresnillo PLC and Frisco are among the companies that integrate the Environmental Protection Club in Zacatecas.).
ON MEXICO ISSUES
- Jorge Vidal, head of Sonora’s Secretaría de Economía (Economy Secretariat), stated that several investments are to strengthen the mining industry during 2020 in Sonora. He pointed that the investment by Bacanora minerals in the lithium project in Bacadehuachi is one of these, and another one is the investment of the Buenavista zinc project in Cananea, which is to generate 500 jobs with the investment of MXN$350 M pesos (US$18.8 M).
- Mining companies are to invest more than US$200 M in exploration in 2020. Fresnillo is to reduce its exploration budget to US$135.1 M, from US$150 M on 2019, with about half of those funds to be used in the conversion of resources to reserves. Pan American Silver focuses on brownfield exploration with a budget of US$20 M for the year, on which La Colorada Skarn is to see a 44,000 m drilling program. First Majestic has an exploration budget of US$28.2 M, to be spent in San Dimas (Durango), Santa Elena (Sonora), La Encantada(Coahuila), La Parrilla (Durango) and Del Toro (Zacatecas). Torex Gold is to conduct an infill drilling program that will cost US$13 M on its Media Luna project (Guerrero). Agnico Eagle is to spend US$33.9 M in exploration during 2020, highlighting the funding of the Santa Gertrudis project in Sonora with US$10.4 M and a 42,000 m drilling program at its Pinos Altos mine in Chihuahua.
- Grupo Mexico is to return to the government the mining concession on which the Pasta de Conchos mine is located. The move is in response to the presidential request to facilitate the retrieval of the remains of over 65 miners deceased in 2006 on the mine located in Coahuila.
- The Cámara Minera de México (Camimex) vowed to pursue the “zero accidents” goal, pointing that in 2018 the associated companies reported an accident rate of 1.63, which is 3.7% lower than in 2017, and below the national average of 2.04 registered by the Instituto Mexicano del Seguro Social (IMSS).
- Excellon Resources Inc. informed on exploration of its 45,000 hectares Evolución property in Zacatecas. Highlights include the expansion of the Lechuzas zone along strike and down dip, and broad intersections of Ag-Pb-Zn, like: 18.7 m @ 27 gpt Ag, 0.8% Pb, 1.1% Zn, 0.1 gpt Au (103 gpt AgEq), including 2.0 m @ 105 gpt Ag, 3.5% Pb, 4.2% Zn, 0.3 gpt Au (416 gpt AgEq); 1.5 m @ 290 gpt Ag, 6.9% Pb, 5.9% Zn, 0.2 gpt Au (779 gpt AgEq); 4.5 m @ 51 gpt Ag, 1.9% Pb, 2.9% Zn, 0.1 gpt Au (244 gpt AgEq); 3.3 m @ 55 gpt Ag, 1.1% Pb, 1.9% Zn (172 gpt Ag). Excellon plans to incorporate all recent work into an updated mineral resource estimate for the project.
- Kootenay Silver Inc. has commenced a 7,000 m phase II core drilling program at its Columba project in Chihuahua. The follow up drilling will focus on the results of last year’s 41-hole, 6,853 m program which targeted six different veins on the property. Highlighted results from that program comprise: 1.15 m @ 775 gpt Ag; 4.83 m @ 230 gpt Ag; 2.90 m @ 519 gpt Ag; 11.0 m @ 133 gpt Ag (including 5.0 m @ 245 gpt Ag); 2.1 m @ 699 gpt Ag; 1.75 m @ 755 gpt Ag, 1.16 gpt Au; 6.25 m @ 244 gpt Ag; 11.5 m @ 415 gpt Ag (including 4.0 m @ 721 gpt Ag); 4.63 m @ 301 gpt Ag; 39.9 m @ 159 gpt Ag (including 7.45 m @ 650 gpt Ag).
- Colibri Resource Corp. informed it has received the required drilling permits for its Evelyn project in Sonora. Drill pad construction and other required infrastructure are to commence immediately, followed by drilling.
- Commander Resources Ltd. reported results from a 70 line-km induced polarization survey (IP) at the Pedro’s project in Durango. The 1,750 ha project was acquired in 2006 from Bearing Resources Ltd. Hematite stained silica rich ridges of angular chalcedony fragments and silicified sedimentary rocks within an angular coarse breccia comprise the outcrops within the Ahuichila conglomerate, within a soil anomaly 4 Km by 1 km and rock chip samples of up to 2.3 gpt Au. Past drilling focused on a Carlin target intercepted up to 10.5 m @ 0.51 gpt Au in oxidized silicified conglomerate.
- Vangold Mining Corp. has secured a surface land access agreement, and a surface land use agreement for its El Pinguico mine in Guanajuato. The 15-year land access agreement was signed with the Ejido Calderones, providing a short access route to the project, whereas the land use permit was signed with a local land owner for 89.6 hectares.
- Riverside Resources Inc. reported on field work and sampling at its Los Cuarentas project in Sonora. Selective rock sampling from dumps, float, channel and rock chips returned five of sixteen samples with more than 5 gpt Au: 25.7 gpt Au, 4 gpt Ag; 10.2 gpt Au, 9 gpt Ag; 6.8 gpt Au, 65.1 gpt Ag, 6.27 gpt Au, 120 gpt Ag; 5.3 gpt Au, 6 gpt Ag; 5.1 gpt Au, 75 gpt Ag. Three primary targets have been identified for a prospective drill program in 2020: Santa Rosalia, Santa Rosalia Sur and El Sombrero.
- GoGold Resources Inc. launched a second exploration project located on the Los Ricos District, called Monte del Favor, in Jalisco. Gogold now owns 35 concessions covering 22,493 hectares in a 35 km trend. The new concessions come with a legacy database of 50 drill holes with highlighted intercepts of: 24.4 m @ 6.4 gpt Au, 1,629 gpt Ag; 28.3 m @ 3.1 gpt Au, 150 gpt Ag; 6.1 m @ 1.1 gpt Au, 201 gpt Ag; 6.1 m @ 2.8 gpt Au, 174 gpt Ag; 20.3 m @ 0.4 gpt Au, 225 gpt Ag.
- Aloro Mining Corp. informed a new drilling permit has been granted by SEMARANT (The Secretariat of Environment and Natural Resources) for its Los Venados project in Sonora. The permit granted the drilling of 15 holes and the construction of up to 3.38 Km of drill roads. Drilling is to focus in the south area of the project, where a hole cut 32 m of blind strong silicic alteration with brecciated vuggy silica an sulfides, with 7.6 m @ 1.13 gpt Au, 32 gpt Ag.
- Starcore International Mines Ltd. released production results for the quarter ending on January 31, 2020. In its San Martin mine in Queretaro, 58.3 K tonnes were milled @ 1.84 gpt Au, 30 gpt Ag, recovering 90.1% Au, 50.9% Ag, to produce 3,425 Oz AuEq.
- Americas Gold and Silver Corp. presented production figures from 2019 and guidance for 2020 of its mining operations, including figures from its Cosalá property in Sinaloa. At Cosalá, 613.8 K tonnes were processed @ 50 gpt Ag, to produce 572 K Oz Ag, 43.3 M Lb Zn and 16.4 M Lb Pb, or 4.68 M Oz AgEq, at cash cost ($18.31) and AISC ($10.90) per Oz Ag produced. Improved access to the Upper Zone at the San Rafael mine will tap higher silver grades in 2020.
- Torex Gold Resources Inc. reported fourth quarter and fill year 2019 financial and operating results. For the last quarter of 2019, Torex Gold produced 121,151 Oz Au at its El Limón-Guajes mine in Guerrero, at cash cost $617 per Oz and all-in sustaining cost of $767 per Oz, generating EBITDA of $102.2 M and repaying $82.5 M of debt during the period. For the year, Torex produced 454,811 Oz Au at cash cost of $619 per Oz and an AISC of $805 per Oz Au, generating EBITDA of $330.3 M and repaying $164.4 M of debt. Total debt now stands at $174.9 M, while cash at hand is $161.8 M. The Media Luna project resource estimate was updated to 2.24 M Oz AuEq at a grade of 5.5 gpt Au in the indicated category and 4.23 M Oz AuEq at 4.23 gpt Au in the inferred category.
- First Majestic Silver Corp. announced financial results for the Q4 and year 2019. During the quarter 626.6 K tonnes were processed to produce 3.35 M Oz Ag, 33,176 Oz Au, 0.9 M Lb Pb, or 6.23 M Oz AgEq at cash cost $3.37 per Oz and an AISC of $12.25 per Oz. The production figures for the year are in the table below. The company ended 2019 with cash and cash equivalents of $169 M.
- Pan American Silver Corp. reported financial results for the year 2019, including figures from its Mexican operations. At La Colorada mine in Zacatecas 768.7 K tonnes were milled @ 361 gpt Ag, 3.10% Zn, 1.65% Pb to produce 8.2 M Oz Ag, 4.61 K Oz Au, 20.97 K tonnes Zn, 11.15 K tonnes Pb, at cash cost $4.30 and AISC of $5.00 (net of by-products). At Dolores, in Chihuahua, 6.78 M tonnes were place on the heaps @ 38 gpt Ag, 0.60 gpt Au, to produce 5.1 M Oz Ag, 117.6 K Oz Au at a cash cost of $3.09 and an AISC of $15.45.
- Fortuna Silver Mines, Inc. provided 2020 production, cost and capital expenditure guidance for 2020, including figures for its Mexican operations. At San Jose, in Oaxaca, the company aims to produce between 6.6 and 7.3 M Oz Ag, and between 41 and 45 K Oz Au, at a cash cost of US$65.6 to US$72.5 per tonne, and an AISC between US$9.6 to US$11,7 per Oz AgEq. The plan is to process 1.06 M tonnes @ 223 gpt Ag, 1.39 gpt Au, with a capital investment of US$17.1 M, including US$12.2 M for sustaining capital expenditures and US$4.9 M for brownfields exploration programs which include 17,600 m of drilling.
- Hecla Mining Co. announced its agreement to sell $475 M aggregate principal amount of 7.25% senior notes. The notes will mature in February 2028, with the company intending to use the net proceeds together with cash on hand to redeem all of its outstanding 6.875% senior notes due 2021. (San Sebastián, Durango).
- Canuc Resources Corp. closed a non-brokered private placement for gross proceeds of $850 K, with three officers of the company participating (San Javier, Sonora).
- San Marco Resources Inc. closed its over-subscribed non-brokered placement, raising C$784.8 K (Espiritu, Sonora).
- Ridgestone Mining Inc. closed the first tranche of the non-brokered private placement to raise $715.2 K on gross proceeds (Rebeico, Sonora).
- Kootenay Silver Inc. has been recognized in the 2020 TSX Venture 50tm as one of the top 50 performing companies on the TSX Venture Exchange (Columba, Chihuahua).
ON RESOURCES AND DEVELOPMENT
- Golden Minerals Co. announced promising results of metallurgical test work on pyrite-arsenopyrite flotation concentrates from its Velardeña properties in Durango. “Gold and silver recoveries of 91% and 92%, respectively, were obtained from cyanide leaching of the bio-oxidized concentrate samples. BIOX* achieved 93% oxidation on the concentrate sample in batch tests, which the Company believes should translate to a 5 to 6-day retention time in a commercial bio-oxidation plant”.
- Excellon Resources Inc. informed on exploration results at its Platosa mine in Durango. Surface drilling of the NE-1S manto returned high-grade intersections, like 6.6 m @ 1,178 gpt Ag, 6.7% Pb, 8.4% Zn, 0.2 gpt Au. A large hydrothermal system was discovered 11 km from the Platosa mine at the Jaboncillo target, where drilling is aimed to start in the first half of 2020.
- SilverCrest Metals Inc. announced a new discovery and additional drill results from the Babicanora Norte vein at its Las Chispas property in Sonora. The discovery drill hole intercepted 2.0 m (tw) @ 6,418 gpt AgEq on a faulted extension that received the name of Area 200, on the Babicanora Norte vein, which is now the highest-grade vein in the project. The initial high-grade footprint of this zone is 500 long by 125 m in height, on the vein that is now known for more than 2.0 km. The area 200 shows an average estimated true width (tw) of 1.5 m @ 16.11 gpt Au, 2,166 gpt Ag (3,375 gpt AgEq). Highlighted results for this press release comprise 1.4 m @ 90.22 gpt Au, 9,422 gpt Ag (16,189 gpt AgEq); 2.4 m @ 45.71 gpt Au, 5,577 gpt Ag (9,006 gpt AgEq); 1.6 m @ 75.78 gpt Au, 7,662 gpt Ag (13,345 gpt AgEq).
- Coeur Mining Inc. reported 2019 mineral reserves and resources, including figures from its Mexican operations. At Palmarejo, in Chihuahua, infill drilling helped replace mining depletion. Proven and probable reserves stand at 11.67 M short tonnes (st) @ 1.83 gpt Au, 135 gpt Ag; measured and indicated resources stand at 8.76 M st @ 1.49 gpt Au, 122 gpt Ag and inferred resources of 6.47 M st @ 1.77 gpt Au, 127 gpt Ag. These amount to 693 K Oz Au, 5.6 M Oz Ag as reserves, 425 K Oz Au, 34.5 M Oz Ag as measured and indicated resources and 367 K Oz Au, 26.3 M Oz Ag as inferred resources.
- Minera Peña Colorada informed that the Peña Colorada mine in Colima received the visit of PROFEPA (Procuraduría Federal de Protección al Ambiente) and SEMARNAT (Secretaría de Medio Ambiente y Recursos Naturales) personnel to review the compliance of the company on the different permits it has received.
- Alamos Gold Inc. Reported mineral reserves and resources to year end 2019, including figures from its Mexican Operations. Mineral reserves at Mulatos decreased by 154 K Oz to 1.56 M Oz, with mining depletion partially offset by an 81 K Oz increase at La Yaqui Grande. The exploration budget was increased to $7 M with 14,000 m of drilling planned around near mine targets as well as at La Yaqui Grande and El Carricito. A number of regional exploration targets were identified with the aid of a VTEM survey carried out in 2018.
- Goldplay Exploration Ltd. provided an update on exploration and drilling of its San Marcial project in Sinaloa. The last holes of 2019 returned 28.7 m @ 92 gpt Ag, including 13.75 m @ 154 gpt Ag in the Faisanes target. At the Guacamayo target 0.60 m @ 138 gpt Ag, 0.56 gpt Au, confirm mineralization 30 m east of the current resource area. Due diligence has commenced on the potential acquisitions of the Plomosas (First Majestic Silver Corp.) and La Trinidad (Mako Mining Corp.).
ON DEALS AND CORPORATE ISSUES
- Tamino Minerals Inc. has filed a law suit against an individual in Sonora. (El Volcán, Sonora).
- Newmont Corp. appointed Jim Cooper as General Manager of the Peñasquito unit in Zacatecas.
- Telson Mining Corp. informed its Chief Executive Officer and member of the Board of Directors, Jose Antonio Berlanga, has resigned due to personal reasons. Mr. Ralph Shearing has been appointed as Interim Chief Executive Officer for the company (Campo Morado, Guerrero).
- Sonoro Metals Corp. informed discussions regarding debt finance and engineering, procurement and construction contracts with China-based EPC companies has been postponed due to the COVID-19 outbreak (Cerro Caliche, Sonora).
- Mexican Gold Mining Corp. announced, along New Found Gold Corp., that they have mutually terminated the binding agreement to acquire all of the issued and outstanding shares of NFGC (Las Minas, Veracruz).
- GoGold Resources Inc. entered into an agreement to acquire a second project located on the Los Ricos District, called Monte del Favor, in Jalisco. The agreement is to acquire 49% of 5 concessions in consideration for US$225 K, and an option to acquire the remaining 51% by paying US$210 K on the second anniversary. The seller will retain 1% NSR on the property, which the company may repurchase by paying US$1 M.
ON SOCIAL RESPONSIBILITY
- Fresnillo PLC supports science, technology and youthful innovation. As part of the regional robotic fair “FIRST” on the La Laguna region, Fresnillo is to support three teams. The sponsored teams are from Turuachi, Chihuahua, Ciénega de Nuestra Señora, Durango and Fresnillo, Zacatecas. One other team from Caborca, Sonora, is to participates in an international competition in Arizona.
- Grupo Mexico supports social and infrastructure projects in Sombrerete, Zacatecas. Every year the company performs 300 activities that benefit 3,000 inhabitants. The social programs and productive activities take place in Sombrerete, San Martin, Villa Insurgentes, Ojo de Agua, Charco Blanco, Santa Rita and José de Félix communities. Also, a seed-capital program has financed 29 projects to benefit 20 schools.
- Peñoles, Fresnillo PLC, and Grupo Frisco among the companies to integrate the Environment Protection Club in Zacatecas. More than 25 companies are to be members of this club, promoted by the State governor, and that will also have universities (Benemérita Universidad Autónoma de Zacatecas and Instituto Politécnico Nacional), the Secretaría de Agua y Medio Ambiente and federal authorities as its memebers.
Content like what you have just read can be seen at https://gambusinoprospector.com/ and at LinkedIn’s Mexico Mineral Exploration Group.
On the image below: The old train bridge between Nacozari and the Pilares mine, in Sonora, picture by Jorge Cirett
Southern Silver Exploration Corp. (the “Company”) is pleased to announce the appointment of Gina Jones to the board of directors. Gina is the Chief Financial Officer and Chief Compliance Officer of PenderFund Capital Management Ltd. Previously, Gina was the Chief Operating Officer and Chief Financial Officer of an independent brokerage firm in Vancouver, as well as CFO for its US parent. Prior to that, Gina was CFO at two Vancouver investment dealers. Gina holds a Bachelor of Commerce degree from UBC, articled with PricewaterhouseCoopers LLP, and is a CPA, CA and CF, a Chartered Professional Accountant with Corporate Finance specialty designation. She holds the ICD.D designation from the Institute of Corporate Directors. In connection with this appointment, the Company has granted 100,000 incentive stock options to Gina Jones exercisable at a price of $0.20 per common share for a period of five years.
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.
- No relevant news.
- 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.
- 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.
On the picture above, phyllic alteration in an IOCG project in Jalisco, Mexico. Photo by Miguel A Heredia.
Mn oxide-calcite fault vein-bx
By Miguel A Heredia
During the forty-five week of the year (November 4th to November 10th, 2019), at least 37 press releases were announced by companies working in Mexico, with nine communicating production and financial results, eight disclosing deals and corporate issues, six announcing financial rounds, five informing on exploration results, four reporting on resources and development of their projects, three commenting on Mexican issues, and two discussing issues on social responsibility. ON MEXICO ISSUES, according to the Director of Mines of Zacatecas, there are five new mine projects in the state to be developed in 2020. Newmont-Goldcorp restated the dialogue process with the Cedros community on its Peñasquito mines in Zacatecas. Local communities and small local merchants expressed their support for the continuity of the Peñasquito mine. ON EXPLORATION, In Sonora, Silver Viper mobilized an exploration crew to its Virginia project to commence a drilling program at the El Rubi target area, and Oceanus reported underground and surface sampling results from its El Tigre project. In Sinaloa, Vizsla reported underground sampling from its Panuco-Copala project. In Zacatecas, Advance Gold outlined a km long by 400-500m wide chargeability anomaly at its Tabasqueña project. In Jalisco, GoGold released drill results from 4 holes collared at its Los Ricos project. ON MINING, Alio Gold, Argonaut, Coeur, Endeavour, Excellon, First Majestic, Hecla, Leagold, and Pan American presented Q3 2019 production and financial results from its Mexican operations. ON FINANCING, Discovery Metals closed a non-brokered private placement for gross proceeds of $19M (Cordero project, Chihuahua). Goldplay closed a brokered private placement for $3M (San Marcial project, Sinaloa).Solaris Copper announced its intention to undertake a non-brokered private placement to raise gross proceeds of up to CAD $5.5M (La Verde, Michoacan). Advance Gold closed the first tranche of a non-brokered private placement for gross proceeds of $113K (Tabasqueña project, Zacatecas). Orex announced that intends to undertake a non-brokered private placement to raise gross proceeds of up to $1M (Sandra-Escobar project, Durango). San Marco revised its previously announced non-brokered private placement and now intends to rise gross proceeds for up to CAD $376.6K. It also closed subscription books for unit and flow through shares private placement for gross proceeds of CAD $40K (Chunibas project, Sonora). ON RESOURCES AND DEVELOPMENT, Capstone announced high grade Cu-Ag results from 103 infill and step-out drill holes at its Cozamin mine in Zacatecas. Vizsla closed its option agreement to acquire 100% interest of Panuco-Copala project in Sinaloa. Torex extended mineralization 150m below current reserves at its El Limon Deep deposit in Guerrero. Mexus announced that its Merrill Crowe Au recover plant is complete and operational at its Santa Elena mine in Sonora. Mag Silver informed about the activities carried out at its Juanicipio project mine development in Zacatecas during Q3, 2019. ON DEALS AND CORPORATE ISSUES, Colibri received TSX approval for its acquisition of Yaque Minerals (Mezquite and Jackie projects, Sonora). Vizsla closed its option agreement to acquire 100% interest in Panuco-Copala property in Sinaloa. Great Panther announced the appointment of its VP Exploration and VP People & Culture (Topia mine, Durango). Solaris Copper announced management changes of its team (La Verde project, Michoacan). Starcore presented results from its annual general meeting of shareholders (San Martin mine, Queretaro). Mako Mining provided a corporate update and status of its Mexican operation. Compañía Minera Cuzcatlán, a subsidiary of Fortuna Silver Mines revealed that it is analyzing to invest in a new plant in Mexico (San Jose mine, Oaxaca). Minera Autlán announced its intention to raise its commitment to gold (Lluvia de Oro-La Jojoba, Sonora). ON SOCIAL RESPONSIBILITY, Agnico Eagle participated in the reconstruction of the drinking water system at Yepachi, Chihuahua, with a total investment of MXP $4M. Argonaut participated in multiple social programs related to their Mexican operations.
ON MEXICO ISSUES
- The Secretariat of Economy in Zacatecas, through its Director of Mines, revealed that new five mines will be developed in the state in 2020, standing out Juanicipio in Fresnillo, Camino Rojo in Mazapil , and San Nicolas in Villa Garcia municipalities. Zacatecas is one of the most prolific areas for mining in the country; however, he is aware of the social problems faced by some of the mining companies which operate in the state. He informed that the local government seeks to generate the conditions for mining companies to invest safely in new projects.
- Newmont-Goldcorp Corporation, restated the dialogue process with the community of Cedros, municipality of Mazapil on Peñasquito mine. A new agreement was signed for the community delegates, with a strong commitment of both parties, by the community not to block again the mine and from the company to attend on time the concerns and proposal from the Ejido.
- Local communities and small local merchants, expressed their support for the continuity of Peñasquito mine. The communities of Cedros, El Rosario, La Pardita, Sábana Grande, Tanquecillos, Tecolotes, Mazapil and El Trigo said they are in favor of the Peñasquito Mine, stating that it has provided benefits to their families. At a press conference, representatives of the aforementioned communities reported that thanks to the company they have work, so they asked the state government to support them and that, through the dialogue avoids a new block. They affirmed that they are against the blockades and the definitive closure of the mine, since this one supports around 25 communities. They said the mining company has provided a source of work to the people of the communities and do not want it to disappear.
- Silver Viper Minerals Corp., mobilized an exploration crew to its Virginia project in Sonora to commence a phase II drilling program at El Rubi target area, where previous drilling carried out in 2018 intersected 3.18 g/t Au and 228 g/t Ag (6.42 g/t AuEq) over 6m of true width. Phase II will test the extension of this structure along trend and at depth on 50m sections with the aim of generating enough information for maiden resource estimation at El Rubi.
- Oceanus Resources Corporation, presented underground and surface sampling results from the Caleigh, Canon Combination and Protectora Veins at its El Tigre project in Sonora. In the Caleigh Vein, underground channel sample ETU-1007 returned 1,896 g/t Ag and 6.4 g/t Au (2,376 g/t AgEq) over a true width of 0.50m, and ETU-1006 returned 1,971 g/t Ag and 4.64 g/t Au (2,318 g/t AgEq) over a true width of 0.50m. In the Canon Combination Vein, underground channel sample ETU-1012 returned 1,794 g/t Ag and 0.25 g/t Au (1,813 g/t AgEq) over a true width of 0.50m. In the Protectora Vein, underground channel sample returned 378 g/t Ag and 2.01 g/t Au (529 g/t AgEq) over a true width of 0.50m. Surface samples collected on this vein reported 374 g/t Ag and 3.32 g/t Au over 0.7m wide; 192 g/t Ag and 0.57 g/t Au (235 g/t AgEq) over 0.5m wide; and 169 g/t Ag and 1.0 g/t Au (244 g/t AgEq) over 0.50m wide. “The results from the mapping and sampling of the underground workings and at surface present a series of high priority drill targets over a 2 kilometer strike length north of the old El Tigre Mine, which we intend to drill.”
- Vizsla Resources Corp., reported encouraging underground sampling results from its Panuco-Copala project in Sinaloa. Highlights results from the underground sampling at the San Carlos mine are 5.65 g/t Au and 612 g/t Ag (1,120 g/t AgEq) over 6m on development level 4, including 10.5 g/t Au and 1,120 g/t Ag (1,960 g/t AgEq) over 3m; 2.55 g/t Au and 517 g/t Ag (721 g/t AgEq) over 4.5m on development level 5, including 3.51 g/t Au and 721 g/t Ag (1.002 g/t AgEq) over 3m; and 2.12 g/t Au and 298 g/t Ag (468 g/t AgEq) over 5.5m on development level 4, including 3.76 g/t Au and 591 g/t Ag (892 g/t AgEq) over 1.5m. These results are part of a mapping and sampling program to better understand mineralization at Panuco project.
- Advance Gold Corp., completed a second phase of a 3D-IP survey and has outlined a N-S trending chargeability anomaly of 1km long by 400-500m wide on its Tabasquena project in Zacatecas. It remains open in both directions as well as at depth. A number of boreholes are now planned to intersect this anomaly.
- GoGold Resources Inc., released drill results from 4 new holes collared at its Los Ricos project in Jalisco. Three of the 4 holes were drilled at El Troce area and significant intersections were encountered in hole LRGG-19-059 with 0.94 g/t Au and 134 g/t Ag (2.72 g/t AuEq) over 11m, including 1.95 g/t Au and 277 g/t Ag (5.65 g/t AuEq) over 3.5m; and hole LRGG-19-60 with 0.32 g/t Au and 66 g/t Ag (1.19 g/t AuEq) over 16m, including 83 g/t Au and 162 g/t Ag (2.98 g/t AuEq) over 3m. Hole LRGG-19-57 was drilled at the Main area and intersected 0.91 g/t Au and 131 g/t Ag (2.65 g/t AuEq) over 14.1m, including 2.14 g/t Au and 253 g/t Ag (5.50 g/t AuEq) over 5.3m. GoGold completed in Mid-October 2019, a phase 1 drilling program which consisted of 10,000m, and has already started a second phase of drilling, adding a third rig machine to the program.
- Alio Gold Inc., continued with processing of low grade stock pile at its san Francisco mine in Sonora, resulting in the placement of 12.8K Oz Au on the pad. The company announced that the low grade stock pile will be exhausted in Q4, 2019, after which crushing will cease, and operations will solely focus on recovery of the residual inventory ounces.
- Argonaut Gold Inc., presented Q3, 2019 production and financial results from its Mexican operations. The company produced 44.7K Oz AuEq at a cash cost of USD $901 per Oz Au produced and sold 45.6K Oz Au at an AISC of USD $1,134 per Oz Au sold. It also reported revenue for USD $66.8, cash flow from operating activities before changes in operating working capital of USD $17.2M, net income of USD $4.9M, adjusted net income of USD $6.5M, and a net cash increase of USD $11.7M. Argonaut also reported mine by mine production results for the period Q3, 2019. At El Castillo Complex in Durango, it milled 4.8M tonnes of 0.35 g/t Au to produced 30.3K Oz AuEq. At El Castillo, 2.4M tonnes of 0.39 g/t Au were milled to produce 14.3K Oz Au and 23.3K Oz Ag. This mine sold 14.6K Oz Au and 16.3K Oz Ag in this quarterly period, at a cash cost of $1,038 per Oz Au sold. At San Agustin, 2.4M tonnes were milled with a grade of 0.32 g/t Au to produce 15.2K Oz Au and 36.9K Oz Ag. This mine sold 15.7K Oz Au and 15K Oz Ag in this quarterly period, at a cash cost of $848 per Oz Au sold. At La Colorada, Sonora, the company milled 1.45M tonnes of 0.6 g/t Au, to produced 14K Oz Au and 33.6K Oz Ag. La Colorada sold 13.8K Oz Au and 34K Oz Ag at a cash cost of $800 per Oz Au sold.
- Coeur Mining Inc., announced Q3, 2019 production and financial results from its Palmarejo mine in Chihuahua. It milled 442,464 tons of 2.8 g/t Au and 152 g/t Ag to, with a metallurgical recoveries of 81.7% and 79.6% respectively, to produce 31.8K Oz Au and 1.72M Oz Ag. Adjusted costs applicable to sales were USD $660 per Oz Au and USD $8.95 per Oz Ag. Coeur reported cash flow from operating activities of USD $36.3M and total capital expenditures of USD $7.8M for a total free cash flow of USD $28.5M.
- Endeavour Silver Corp., reported consolidated Q3, 2019 financial and production results from its four Mexican operations: Guanacevi mine in Durango, Bolañitos and El Cubo in Guanajuato, and El Compas in Zacatecas. The company processed 234, 196 tonnes to produce 948.5K Oz Ag and 9.7K Oz Au (1.72M Oz AgEq), at a cash cost of $11.51 per Oz Ag produced and AISC of $21.53.
- Excellon Resources Inc., reported Q3, 2019 production and financial results from its Platosa mine in Durango. The company mined 18,167 tonnes and processed 17,235 tonnes with grades of 512 g/t Ag, 4.4% Pb, and 6% Zn, to produce 257.5K Oz Ag, 1.3M Lb Pb, and 1.65M Lb Zn (427.1K Oz AgEq), at a cash cost per Oz Ag payable of $18.18 and AISC net of by-products per Oz Ag payable of $28.46. Metallurgical recoveries were 87.2%, 77.7%, and 76.5% for Ag, Pb, and Zn respectively. Excellon reported revenues for $5.9M, a net loss of $2.9M, and a net working capital of $$9.0M.
- First Majestic Silver Corp., presented Q3 production results from its Mexican operations. The company reported revenues for $97M, a net loss of $8.6M, operating cash flow before movements in working capital and taxes of $34.6M, cash and cash equivalent of $118.6M, and a working capital of $149.2M. The below table shows the mine by mine production results:
- Hecla Mining Company, announced Q3 production and financial results from its San Sebastian mine in Durango. It produced 541.6K Oz Ag and 3.7K Oz Au at an AISC of $$7.21 per Oz Ag.
- Leagold Mining Corporation, produced from its Los Filos mine in Guerrero, 40,922 Oz Au at an AISC of $1,001 per Oz Au produced, and sold 41,343 Oz Au during Q3, 2019, with associated revenue of $58.6M.
- Pan America Silver Corp., reported Q3, 2019 production and financial results from its la Colorada, Zacatecas and Dolores, Chihuahua mines. At La Colorada, the company produced 2.1M Oz Ag and 1,200 Oz Au, at a cash cost of $2.82 per Oz Ag and an AISC of $4.03 per Oz Ag. At Dolores, it produced 1.5M Oz Ag and 33.1K Oz Au, at an AISC of $7.45 per Oz.
- Discovery Metals Corp., closed a non-brokered private placement for gross proceeds of $19M, including $5M investment from Eric Sprott, which represents 19.9% of the interest of Discovery on a non-diluted basis. Proceeds will be used to continue the exploration programs at its exploration properties (Cordero project, Chihuahua, Puerto Rico project, Coahuila).
- Goldplay Exploration Ltd., closed a brokered private placement financing of $3M. Gross proceeds will be used to continue resource expansion drilling including underground and surface exploration on its san Marcial project in Sinaloa.
- Solaris Copper Inc., announced its intention to undertake a non-brokered private placement to raise gross proceeds of up to CAD $5.5M. Gross proceeds will be used to advance permitting, exploration, and drilling activities at their projects. (La Verde project, Michoacan).
- Advance Gold Corp., closed the first tranche of a non-brokered private placement for gross proceeds of $113K. The company will use the gross proceeds to advance its Tabasqueña project in Zacatecas.
- Orex Minerals Inc., announced its intention to undertake a non-brokered private placement to raise gross proceeds of up to $1M. Orex will use the net proceeds to maintain its 40% share of the Sandra Escobar project in Durango and fund its 40% share of the upcoming work program, and to make the necessary payments under its option to acquire 100% of the San Luis del Cordero project, Durango, and for general corporate and capital purposes.
- San Marco Resources Inc., revised its previously announced non-brokered private placement and now intends to rise gross proceeds for up to CAD $376.6K. It also closed subscription books for unit and flow through shares private placement for gross proceeds of CAD $40K (Chunibas project, Sonora).
ON RESOURCES AND DEVELOPMENT
- Capstone Mining Corp., announced high grade Cu-Ag results from 103 infill and step-out drill holes from 200 hole program at its Cozamin mine in Zacatecas. Aim of this program is more than double the current reserve base. Significant drill intersection were encountered in hole CG-19-U498 with 5.02% Cu, 0.4% Zn, and 72 g/t Ag over a true width of 12.3m, including 9.02% Cu, 0.7% Zn, and 127 g/t Ag; in hole CG-18-S381 with 7.27% Cu, 0.3% Zn, and 220 g/t Ag over a true width of 5.1m; in hole CG-18-S372 with 5.53% Cu, 0.2% Zn, and 117 g/t Ag over a true width of 20.1m, including 11.32% Cu, 0.3% Zn, and 242 g/t Ag over a true width of 6.4m.
- Torex Gold Resources Inc., reported drilling results from its 2019 exploration program at its El Limon-Guajes complex deposit in Guerrero. The drilling program has been successful in extending mineralization 150m below current reserves at its El Limon Deep deposit. Significant mineralization was encountered in hole LDUG-039 with 15.6 g/t Au over 38m; in hole LDUG-049 with 20.9 g/t Au over 12m, and in hole LDUG-056 with 15.7 g/t Au over 16.8m. El Limon Deep deposit remains open down dip and along strike.
- Mexus Gold US, announced that its Merrill Crowe Au recovery plant at its Santa Elena mine in Sonora is complete and operational. “The plant is capable of handling Mexus’3000 ton a week mining operation and will allow for future expansion as well”.
- Mag Silver Corp., informed about the activities carried out at its Juanicipio project mine development in Zacatecas during Q3, 2019. The company reported that “earthmoving and foundation preparation commenced for the construction of the 4,000 tpd beneficiation plant. Mill fabrication is progressing on schedule, and both the SAG and ball mills are expected to be shipped to site early 2020. Flotation cells, processing tanks and minor process equipment pieces are starting to arrive on site. Thickener tanks and drive and rakes fabrication are well advanced. Underground development has now reached 23Km of development and continues. According to the operator, Fresnillo plc, permitting for the tailings impoundments should be completed in the fourth quarter of this year and mill construction is on track for commissioning by late 2020”.
ON DEALS AND CORPORATE ISSUES
- Colibri Resources Corporation, received TSX approval for its acquisition of Yaque Minerals by a CAD$ 1M payment by way of a 5-years convertible debenture bearing 2.5% annual interest and carries a $0.20 per share conversion privilege. The Yaque´s acquisition includes two projects in Sonora: El Mezquite and Jackie, located less than 10Km east of the Nicho deposit owned by Minera Alamos, which is expected to start production in 2020, with initial production of 25K-30K Oz Au per year, with a mine life of more than 6 years. El Mezquite is a 2km by 1km N-S trending hydrothermal alteration zone on silicified feldspar porphyry, with a potential Au target area of at least 600m by 300m. A 3D-IP survey was carried out on this anomalous area which resulted in the identification of chargeability and resistivity anomalies underlying the surface area of potential. 321 grab samples have been collected of which 13% returned Au values oscillating from 0.1 to 3.41 g/t Au. Jackie is located 2km south of the El Mezquite but it has seen very little exploration work to date. Some prospecting work is planned for 2020.
- Vizsla Resources Corp., closed its previously announced option agreement on November 5, to acquire 100% interest in Panuco-Copala property in Sinaloa. Vizsla confirmed that it has previously loaned USD $700K to Canam in order to satisfy the initial payment due under the terms of the options.
- Great Panther Mines Limited, announced the appointment of its VP Exploration and VP People & Culture (Topia mine, Durango).
- Solaris Copper Inc., announced management changes of its team, appointed its CEO, CFO, VP Corporate Affairs and Corporate Secretary, and a new member to its Board of Directors (La Verde project, Michoacan).
- Starcore International Mines Ltd., reported results from its annual general meeting of shareholders (San Martin mine, Queretaro).
- Mako Mining Corp., provided a corporate update and status of its Mexican operation. At its la Trinidad mine in Sinaloa, Au production is nearing conclusion, with Au sales being used to fund ongoing reclamation and severance costs. Mining and process plant equipment has been moved to USA and the lab equipment will be moved to Nicaragua soon. Mako has reported that has not been successful in receiving any insurance for damages caused by Hurricane Willa at its Trinidad mine in October, 2018. It has filed a lawsuit for over USD $7M against the Insurance Company. Mako also announced that it has reached an agreement with the primary mining contractor on the debt of approximately USD $11.3M. “Despite being ring-fenced from the rest of Mako’s corporate structure, the Company chose to settle with the contractor by making a USD $4M upfront payment and agreeing to make two additional USD $1M payments 12 months and 24 months from signing of the settlement agreement. As this liability was being accounted for at approximately USD$11.3M, a substantial accounting gain is expected in the next quarterly report.
- Compañía Minera Cuzcatlán , a subsidiary of Fortuna Silver Mines, analyzes to invest in a new mining plant located 40km from its San Jose mine, Oaxaca. The company asked government support to mediate between the company and the communities, since the new plant will require between USD $200-300M. The decision has to be taken next year, so they need the support of the authorities to reach a social agreement with the communities.
- Compañía Minera Autlán, A.B .de C.V., announced its intention to raise its commitment to gold. The intention of that business and the integration towards gold was always to reach 20 to 25% of the top line and about 30 to 35% of the operating cash flow (EBITDA). In addition, the company estimates they will close this year with and investment of USD $35M to support other areas of its business, to add USD $45 M in an integrated way (Lluvia de Oro-La Jojoba, Sonora).
ON SOCIAL RESPONSIBILITY
- Agnico Eagle Mines Limited, participated, along with the municipal presidency of Yepachi, Chihuahua, in the reconstruction of the drinking water system for this community. Yepachi is the second largest community in this area and has years of lag in terms of the supply and quality of drinking water. A total of MXP $4M will be invested, an amount that will be contributed by 50% by the municipal presidency and the other part will be borne by Agnico Eagle, which operates within the territory of the Yepachi Ejido.
- Argonaut Gold Inc., has participated in several programs with the communities where the company operates. At La Colorada, Sonora, Argonaut signed a health collaborative agreement with the Centro de Rehabilitación Integral Teletón and hosted a cultural event with the Cultural Institute of Sonora. In Durango, participated in collaboration with the local government in an interactive learning pavilion where local attendees and families could know about the company´s mining activities and projects. It also sponsored an international forum on geological and mining heritage organized by the Universidad Autónoma de Baja California Sur, to discuss possible historical tourism and ecotourism in mining communities. Finally, Argonaut hosted students’ interactive workshops in the municipality of Dolores, Hidalgo in the village of san Anton in Guanajuato, Mexico, and hosted a soprano singer and the Latin American quartet at the Mining Cultural Centre of the Mexican chamber of commerce in Mexico City.
On the picture above, a Mn oxides-calcite fault vein-bx structure from a prospect in Chihuahua, Mexico. Photo by Miguel A Heredia.
VANCOUVER, Nov. 4, 2019 /CNW/ – GREAT PANTHER MINING LIMITED (NYSE American: GPL; TSX: GPR) (“Great Panther”, the “Company”) is pleased to report the appointments of Alan Hitchborn (P.Geo) as Vice President, Exploration and Lucie Gagnon as Vice President, People & Culture.