During the 33rd week of the year (August 16th to August 22nd, 2021), at least 22 press releases were announced by companies working in Mexico. To note, four companies posted exploration advances on their properties, four posted on mining/quarterly reports, two on mining issues, four on financing or shares and five more on project development or resource definition and one more on a property acquisition. ON MEXICO ISSUES, No relevant news. ON EXPLORATION, in Sonora, Aloro Mining informed on continuation of drilling at Los Venados. In Chihuahua, Radius Gold announced one more drilling campaign at Amalia. In Sinaloa, Vizsla Silver updated on exploration at Panuco. In Nayarit, Xali Gold submitted drilling applications for El Dorado. ON MINING, Americas Gold and Silver, Prime Mining, First Majestic Silver, and Impact Silver presented second quarter 2021 reports. Mexus Gold shipped its first activated carbon. Gold Resource halted activities due to increase in COVID cases among its workforce. ON FINANCING, Candelaria Mining will not complete the proposed private placement. Galore Resources is to extend the expiry date of some warrants. Kootenay Silver is to spin-out its Canadian assets into another company. Magna Gold closed the previously announced private placement for C$10 M. ON RESOURCES AND DEVELOPMENT, Sierra Metals announced a 10,000 tpd PEA for its Bolivar mine in Chihuahua. Fabled Silver Gold released more results from drilling at Santa Maria. Excellon Resources released high grade Ag-Pb-Zn drilling results from Platosa. GoGold Resources informed on results of drilling at the Casados deposit at Los Ricos project. Sonoro Gold reported results of metallurgical tests at Cerro Caliche. ON DEALS AND CORPORATE ISSUES, Starcore International Mines acquired the Tecouitla claims in Sonora. ON SOCIAL RESPONSIBILITY, No relevant news.
ON MEXICO ISSUES
No relevant news.
Xali Gold Corp. informed exploration permit applications have been submitted for El Dorado project in Nayarit. The plus 2,000 m program envisaged will test potential lateral extensions to high-grade zones to better define plunging mineralization shoots, and collection of a bulk sample from El Hundido mine.
Radius Gold Inc. announced that the phase five drilling campaign has commenced at its Amalia project in Chihuahua. Pan American Silver Corp., the project operator plans to deploy a second rig to test El Cuervo target.
Aloro Mining Corp. informed that Alamos Gold Inc. is to resume the reconnaissance drill program on the Los Venados claims in Sonora. Alamos has already exceeded its first year exploration commitment; the current program is focused on outcropping low sulfidation epithermal mineralization.
Vizsla Silver Corp. provided an update on its Panuco project in Sinaloa. Due to the current rise in Covid cases in Sinaloa, Vizsla will keep the current pause in activities at the property until the end of the month, and then gradually increase activities through September. Resource drilling is being done at Napoleon (950 x 350 m area) and Tajitos (550 m x 300 m area), exploration drilling is testing the Napoleon, Cinco Señores, Cordon de Oro and Animas Corridors. Preliminary metallurgical testing is being done on Napoleon vein material, and geotechnical and hydrogeological studies are being conducted. Drilling programmed for the remainder of 2021 comprises 35,000 m.
Americas Gold and Silver Corp. reported second quarter 2021 consolidated financial and operational results. For Mexico, the company reported that it “signed an agreement with the Mexican Ministries of Economy, Interior and Labour along with union representatives committing to a re‐opening at the Cosalá Operations. The agreement contemplates immediate right to possession of the property with joint inspections coordinated by the Ministry of Labor, so that the mine and mill can re‐start operations in a safe and sustainable manner”. (Note from writer. – The mine was paralyzed by a dispute between two unions over a year ago, with strong political connotations).
Prime Mining Corp. reported its operational and financial results for the fourth quarter of fiscal year 2021, end in April 2021. During April the company completed a private placement for gross proceeds of CAN$28.75 M. Also in the period, drilling at Los Reyes in Sinaloa intersected up to 20.1 m @ 3.25 gpt Au, 389 gpt Ag, 3.8 m @ 3.69 gpt Au, 305 gpt Ag, 4.5 m @ 8.95 gpt Au, 74 gpt Ag; 18.7 m @ 1.96 gpt Au, 63 gpt Ag; 39.0 m @ 0.7 gpt Au, 29 gpt Ag. Cash at the end of the period stood at Can$32 M.
First Majestic Silver Corp. announced the consolidated financial results for the second quarter 2021. During the period the company processed 826.2 K tonnes, to produce 3.27 M Oz Ag, or 6.43 Oz AgEq at $13.89 per Oz AgEq and an AISC of $19.42 per Oz AgEq. In Mexico, the production came from San Dimas, in Durango, La Encantada, in Coahuila, and Santa Elena, in Sonora.
Mexus Gold US. confirmed the first shipment of activated carbon from its Santa Elena mining operation in Sonora (Not to mistake with First Majestic’s Santa Elena mine, also in Sonora).
Gold Resource Corp. informed that as result of a steep climb in COVID-19 infections, the company is reducing its activities at the Don David mine in Oaxaca. The measure is to last for at least ten days. “The operations will continue with those employees and contractors who have agreed to stay in the camp for periods longer than the usual rotation to create a bubble”.
Impact Silver Corp. announced its financial and operational results for the second quarter 2021. The cash balance at the end of the quarter was $22.4 M. The mill processed 37.8 K tonnes @ 147 gpt Ag to produce 150.3 K Oz Ag. Some results of its ongoing 10,000 m drilling campaign include 9.8 m @ 211 gpt Ag and 13.85 m @ 186 gpt Ag.
Candelaria Mining Corp. informed that the company will not be proceeding with the proposed brokered private placement previously announced (Pinos, Zacatecas, Guerrero).
Galore Resources Inc. proposed to extend the expiry date of 5.6 M share purchase warrants from September 2021 to September 2024 (Dos Santos, Zacatecas).
Kootenay Silver Inc. board approved a spin-out of 80% of its Canadian exploration assets. Once the arrangement becomes effective, Kootenay shareholders will own shares in two public companies, one focusing in Mexico and the other in Canada (Columba, Chihuahua).
Magna Gold Corp. closed the previously announced private placement of C$10 M convertible debentures (San Francisco, Sonora).
ON RESOURCES AND DEVELOPMENT
Sierra Metals Inc. announced a 10 K tonnes per day positive preliminary economic assessment (PEA) to include iron ore production at its Bolivar mine in Chihuahua. The report envisages an updated after-tax net present value (NPV) of US$361 M at an 8% discount rate, an IRR of 27.9%, net after-tax cash flow of US$650 M with a life of mine (LOM) copper grade of 0.72% and iron ore at 13.5%, an operating cost of US$25.62/tonne and US$1.50 per Lb CuEq, to produce 55 M Lb Cu in 14 years. Current indicated resources stand at 19.4 M tonnes @ 0.77% Cu, 15.1 gpt Ag, 0.21 gpt Au, 13.8% Fe, containing 149.1 K tonnes Cu, 9.4 M Oz Ag, 127.8 K Oz Au, and inferred resources at 21.4 M tonnes @ 0.78% Cu, 14.2 gpt Ag, 0.21 gpt Au, containing 167.1 K tonnes Cu, 9.8 M Oz Ag, 145.6 K Oz Au.
Fabled Silver Gold Corp. announced more results from surface drilling at its Santa Maria project in Chihuahua. Highlighted core length intervals comprise 0.85 m @ 0.98 gpt Au, 10 gpt Ag; 0.80 m @ 0.09 gpt Au, 63 gpt Ag, 0.3% Pb, 0.6% Zn; 20.10 m @ 0.18 gpt Au, 35 gpt Ag, 1.1% Pb, 0.7% Zn, 0.09% Cu (including 5.90 m @ 0.30 gpt Au, 97 gpt Ag, 3.3% Pb, 1.5% Zn, 0.25% Cu).
Excellon Resources Inc. released results from underground drilling at Platosa, in Durango. Some of the highlighted core length intervals: 3.0 m @ 227 gpt Ag, 2.3% Pb, 2.0% Zn, 0.1 gpt Au; 1.3 m @ 360 gpt Ag, 10.1% Pb, 10.2% Zn; 1.3 m @ 692 gpt Ag, 9.3% Pb, 6.3% Zn; 1.2 m @ 544 gpt Ag, 5.9% Pb, 3.9% Zn; 1.6 m @ 1,647 gpt Ag, 12.3% Pb, 11.6% Zn, 0.1gpt Au; 5.2 m @ 1,051 gpt Ag, 12.1% Pb, 13.1% Zn, 0.2 gpt Au (including 2.3 m @ 1,985 gpt Ag, 22.8% Pb, 17.2% Zn); 2.5 m @ 784 gpt Ag, 7.7% Pb, 13.9% Zn, 0.3 gpt Au; 3.1 m @ 581 gpt Ag, 5.7% Pb, 11.4% Zn, 0.1 gpt Au; 1.4 m @ 1,050 gpt Ag, 3.4 % Pb, 2.0% Zn; 3.1 m @ 289 gpt Ag, 2.2% Pb, 3.7% Zn. “Drilling from underground continues to define and expand known mineralization ahead of production at the 623, NE-1 and NE-1S Mantos. Most significantly, drilling into the 623 and NE-1 Mantos continues to improve understanding and confidence, and extend mineralization in these areas”.
GoGold Resources Inc. informed on results from seven drill holes at the Casados deposit at the Los Ricos North project in Jalisco. Highlighted core length intervals: 19.0 m @ 0.54 gpt Au, 131 gpt Ag (including 1.3 m @ 5.16 gpt Au, 1,319 gpt Ag); 9.5 m @ 0.50 gpt Au, 233 gpt Ag; 41.6 m @ 1.25 gpt Au, 218 gpt Ag (including 8.9 m @ 4.71 gpt Au, 698 gpt Ag); 19.2 m @ 0.53 gpt Au, 185 gpt Ag (including 8.5 m @ 1.14 gpt Au, 594 gpt Ag); 8.2 m @ 0.26 gpt Au, 82 gpt Ag. “The Casados Veins strike nearly E-W, dips 45o to the north and is hosted in andesitic tuffs and is exposed on surface for about 400 metres along strike…… A zone of silicification up to 50 metres wide envelopes the vein and this resistant outcrop forms a steep ridge along the strike of the vein, particularly on the north or hanging wall side”.
Sonoro Gold Corp. reported results from metallurgical tests on mineralized material from Cerro Caliche in Sonora. The column metallurgical test returned an average of 74% recovery of gold for the 80% minus 12.5 mm feed material. The 4.7 tonnes sample was obtained from ten PQ (8.5 cm diameter) holes totaling 428 lineal meters. Little to no sulfur and organic carbon were observed on the testing. “There were no obvious variations in gold recovery related to ore zone or material type (vein breccia vs. stock work)”.
ON DEALS AND CORPORATE ISSUES
Starcore International Mines Ltd. informed on the acquisition of the 3,088 hectares Tecoutila claims from Minera Tecouitla, S.A. de C.V.. Previous exploration in the property reported nine veins with lengths of up to 2.1 Km, widths of 0.5 to 1.1 m and grades of up to 10.30 gpt Au, 241 gpt Ag.
ON SOCIAL RESPONSIBILITY
No relevant news.
On the image below: Workings and vein trace on a project in northern Sonora. Picture by Jorge Cirett.
During the 25th week of the year (June 21st to June 28th, 2021), at least 34 press releases were announced by companies working in Mexico. To note, seven companies posted exploration advances on their properties, six posted on financing, warrants extension, options distribution or option payments received, eight more on project development or resource definition and four posted on deals or corporate issues. ON MEXICO ISSUES, there is a new illegal blockade at Los Filos in Guerrero. Canadian Mining companies are suffering the results of the asylum provided by Canada to Mexican union leader Napoleon Gómez Urrutia. ON EXPLORATION, in Sonora, Riverside is receiving funding for exploration of five properties; Ridgestone released surface sample results from Rebeico; Colibri completed an IP survey on Evelyn. In Chihuahua, Kootenay is to rehabilitate underground workings at Columba. In Sinaloa, GR Silver initiated a drilling campaign in the Rosario district. In Durango, Mithril intersected bonanza grade mineralization in drill holes at Copalquin. In Jalisco, Xali Gold identified targets at its Tepic project. ON MINING, Mexus Gold produced some gold at Santa Elena in Sonora. Fresnillo paid US$176.2 M in taxes to the Mexican government in 2020. Santacruz Silver reported a fatality at is Rosario mine in San Luis Potosi. ON FINANCING, Reyna Silver, Wealth Minerals and Southern Silver reported on financing rounds for C$6.06 M, $675 K and $3 M respectively. Vizsla Silver granted options, Radius Gold received $400 K as payment from Pan American Silver related to an earn-in agreement on the Amalia project. Advance Gold extended the expiry date of some warrants. ON RESOURCES AND DEVELOPMENT, Guanajuato Silver informed on advance at getting the El Cubo and Pinguico mines back to production. Minera Alamos informed construction has been completed at Santana, in Sonora. Fabled Silver Gold released drilling results from Santa Maria, in Chihuahua. Discovery Silver released results from drilling targeting bulk mining mineralization at Cordero, in Chihuahua. Vizsla Silver released interesting drilling results from Panuco, in Sinaloa. Silver Dollar signed a surface access agreement at La Joya, in Durango. Oroco Resources received the environmental permit to drill at Santo Tomas, in Sinaloa. ON DEALS AND CORPORATE ISSUES, Vizsla Silver is to spin a Canadian copper asset, forming Vizsla Copper. Fortuna Silver and Roxgold received a recommendation for their business combination. David Jones is on Benjamin Hill as a technical advisor. Orogen Royalties is to trade on the OTCQX ON SOCIAL RESPONSIBILITY, Peñoles, Fresnillo PLC, the Chihuahua Mining cluster and Minera Peñasquito informed on actions the companies realize to help communities and the environment. Great Panther published its sustainability report. Newmont launched its Climate Strategy Report.
ON MEXICO ISSUES
Equinox Gold Corp. informed an illegal blockade has temporarily suspended mining activities at Los Filos, Guerrero. the illegal blockades are led by “a group of unionized employees and members of the Xochipala community, both of whom are demanding payments in excess of their contractual agreements.
Americas Gold & Silver continues its fight against Napoleón Gómez Urrutia union. The company has had its San Rafael mine in Cosalá, Sinaloa, under siege for 18 months by the section 333 of the Sindicato de Trabajadores Mineros, Metalurgicos, Siderurgicos y Similares de la República Mexicana (the union led by Napoleón Gómez Urrutia). The company asked the Canadian government for help on what they see as an illegal blockade disguised as a dispute for the Union to control the company’s personnel collective contract (speaking of retribution, Canadian Mining companies are paying for the asylum Canada provided to the Union leader, and are set to pay dearly if do not fight back).
Riverside Resources Inc. informed BHP is funding exploration in five projects in Sonora, acquired under the BHP-Riverside Exploration Funding Agreement. A total of US$1.3 M over two years was allocated for generative funding, with an additional US$1 M in specific work programs. Riverside anticipates two projects will see a maiden drill campaign on 2021, of five under evaluation. The Chuin and Palofierro projects are the most advanced, while Sinoquipe, Penitas and Montosa projects are to follow suite. Magneto-teluric (MT) and gravity geophysics, green-mineral, whole rock and prospecting are being used for vectoring and district evaluations.
GR Silver Mining Ltd. initiated a 14,000 m exploration drill program in the Rosario district in Sinaloa. Seven drill rigs are being mobilized to dill vein systems covering a combined 75 km strike length of the Plomosas, San Marcial and La Trinidad project areas. Some of the targets include the GAP area, Loma Dorada structure.
Xali Gold Corp. identified drill targets that can extend known mineralization at its Cocula project in Jalisco. These drill targets were identified on a 3D model, and are designed to test potential extensions to previously defined zones. The project displays two styles of mineralization, gold-silver as dissemination in oxidized breccias near surface and higher-grade gold silver and base metals in structures containing stockwork quartz veining.
Ridgestone Mining Inc. released assay results from sampling on recent mapping at its Rebeico project in Sonora. Sampling at El Cobre mine returned up to 1.0 m @ 3.5% Cu, 0.32 gpt Au, 32 gpt Ag, 0.136% Mo on the main structure. Regional mapping returned up to 1.2 m @ 1.06% Cu, 2.40 gpt Au, 6 gpt Ag in a quartz vein and 1.5 m @ 0.08% Cu, 3.45 gpt Au in a breccia. “The El Cobre mine was put into production by Asarco during the sixties and was developed on two levels, with the upper level having over 230 metres of drift development and the lower level having over 100 metres long of drift development at a depth of 180 metres below surface. The main structure, with widths varying from 1 to 5 metres, has been emplaced within a granodiorite intrusive and remains open along strike and at Depth”.
Kootenay Silver Inc. announced the signing of a contract with Tlasa Obras Mineras S. de R.L. de C.V. to rehabilitate the historic underground workings of the F vein at the Coulmba project in Chihuahua. Work is expected to take four months.
Colibri Resource Corp. reported the completion of the previously announced IP survey at Evelyn, in Sonora. The IP survey consisted of 38-line km of 3D-IP covering the eastern half of the Evelyn project. “…the highest chargeability response is spatially associated with the Main Zone within the Cerro Rojo target area…. the Company has decided to extend the IP survey to the western boundary thus completing 3D IP coverage over most of the property”.
Mithril Resources Ltd. released drill results from its Copalquin project in Durango. Highlighted core length results comprise: 6.8 m @ 74 gpt Au, 841 gpt Ag (including 2.1 m @ 235 gpt Au, 2,554 gpt Ag); 4.61 m @ 1.87 gpt Au, 89 gpt Ag; 7.60 m @ 2.34 gpt Au, 144 gpt Ag; 1.0 m @ 2.64 gpt Au, 167 gpt Ag; 6.0 m @ 1.41 gpt Au, 66 gpt Ag; 1.80 m @ 2.38 gpt Au, 53 gpt Ag; 1.05 m @ 2.36 gpt Au, 95 gpt Ag; 0.50 m @ 28.9 gpt Au, 471 gpt Ag; 1.66 m @ 2.41 gpt Au, 153 gpt Ag. Drilling continues along El Refugio structure, and soil sampling is in progress to define the structure a further 1.3 km to the west.
Mexus Gold US. informed its Santa Elena mine in Sonora produced 20 Oz Au last week and confirmed the presence of 30 ounces more on the activated carbon cells.
Fresnillo PLC. presented a report on the payments to the governments of Mexico, Chile and Peru. In Mexico, Fresnillo paid US$ 139.3 M in taxes, US$1.48 M in royalties and US$35.4 M in concession fees, for a total of US$176.2 M.
Santacruz Silver Mining Ltd. reported a fatality at its Rosario project in San Luis Potosi. ”The accident took place at the Membrillo mine as a result of a rock fall”.
Vizsla Silver Corp. granted 4.15 M options to directors, officers, employees and consultants (Panuco, Sinaloa).
Reyna Silver Corp. has over-sold the offering and completed a brokered private placement for gross proceeds of C$6.06 M (GuiGui, Chihuahua).
Radius Gold Inc. reported that Pan American Silver, its joint venture partner in at the Amalia project in Chihuahua, has paid a scheduled US$400 K property payment to Radius, and plans further drilling at the project. “Exploration completed at Amalia includes 31 holes for 10,588m of diamond core drilling, primarily at the San Pedro zone on the Amalia structure. The next targets to be drill tested are El Cuervo…. and at California”.
Wealth Minerals Ltd. closed the second tranche of the placement, for gross proceeds of $675 K (Coronado, Chihuahua).
Southern Silver Exploration Corp. closed the non-brokered private placement financing for gross proceeds of $3 M (Cerro Las Minitas, Durango).
Advance Gold Corp. applied to the TSX Venture Exchange to extend the expiry date on 3.08 M share purchase warrants issued pursuant to the private placement financing in July 2019, by one year, to July 9, 2022 (Tabasqueña, Zacatecas).
ON RESOURCES AND DEVELOPMENT
Guanajuato Silver Company Ltd. informed on staffing mill and mine refurbishment at El Cubo, Guanajuato. Also the company is doing metallurgical studies on El Cubo and Pinguico deposits.
Minera Alamos Inc. informed all construction has now been completed at Santana, in Sonora. “All construction has now been completed with the full leach pad now lined and available for stacking….. First loading of mined material from the Nicho Norte pit commenced earlier this month …in preparation for the commissioning of leach operations around the end of the June”.
Fabled Silver Gold Corp. released drilling results from its ongoing campaign at Santa Maria, Chihuahua. Highlighted core length results comprise 10.50 m @ 0.38 gpt Au, 31 gpt Ag, 0.2% Pb, 1.0% Zn Cu (including 1.20 m @ 1.37 gpt Au, 51 gpt Ag, 0.6% Pb, 4.2% Zn); 27.50 m @ 0.19 gpt Au, 20 gpt Ag (including 1.20 m @ 0.52 gpt Au, 163 gpt Ag, 0.3% Pb, 1.0% Zn); 19.65 m @ 0.44 gpt Au, 52 gpt Ag, 0.3% Pb, 0.6% Zn (including 7.90 m @ 0.74 gpt Au, 104 gpt Ag, 0.5% Pb, 1.2% Zn); 1.00 m @ 0.33 gpt Au, 322 gpt Ag, 0.3% Pb, 0.4% Zn.
Discovery Silver Corp. released results from 12 drill holes targeting bulk-mining mineralization at its Cordero project in Chihuahua. Highlighted results comprise 65.9 m @ 69 gpt Ag, 0.11 gpt Au, 0.7% Pb, 3.7% Zn; 143 m @ 39 gpt Ag, 0.13 gpt Au, 0.4% Pb, 1.3% Zn; 59.5 m @ 54 gpt Ag, 0.08 gpt Au, 0.9% Pb, 1.5% Zn; 86.0 m @ 33 gpt Ag, 0.17 gpt Au, 0.3% Pb, 1.2% Zn; 82.3 m @ 44 gpt Ag, 0.06 gpt Au, 0.7% Pb, 1.5% Zn; 59.4 m @ 48 gpt Ag, 0.06 gpt Au, 1.0% Pb, 2.0% Zn; 48.9 m @ 85 gpt Ag, 0.08 gpt Au, 0.6% Pb, 1.1% Zn.
Vizsla Silver Corp. provided results for fourteen holes from the Napoleon prospect at the Panuco project in Sinaloa. Highlighted true width results comprise 3.73 m @ 2.85 gpt Au, 105 gpt Ag, 0.7% Pb, 1.4% Zn; 2.62 m @ 5.51 gpt Au, 476 gpt Ag, 1.5% Pb, 1.1% Zn; 8.36 m @ 5.58 gpt Au, 372 gpt Ag, 0.2% Pb, 0.9% Zn (including 2.31 m @ 18.88 gpt Au, 1,306 gpt Ag, 0.7% Pb, 2.1% Zn; 3.21 m @ 0.94 gpt Au, 30 gpt Ag, 0.1% Pb, 0.9% Zn; 3.45 m @ 1.81 gpt Au, 43 gpt Ag, 0.3% Pb, 1.2% Zn; 11.34 m @ 3.11 gpt Au, 88 gpt Ag, 0.3% Pb, 2.1% Zn; 4.87 m @ 3.70 gpt Au, 112 gpt Ag, 0.3% Pb, 1.5% Zn.
GoGold Resources Inc. informed on results from seven drill holes from El Favor deposit at its Los Ricos North project in Jalisco. Highlighted core length results comprise: 15.0 m @ 0.41 gpt Au, 136 gpt Ag (including 6.4 m @ 0.80 gpt Au, 258 gpt Ag); 20.6 m @ 0.13 gpt Au, 44 gpt Ag; 10.6 m @ 0.09 gpt Au, 38 gpt Ag; 6.5 m @ 0.17 gpt Au, 81 gpt Ag; 63.7 m @ 0.11 gpt Au, 47 gpt Ag (including 9.1 m @ 0.54 gpt Au, 186 gpt Ag); 61.3 m @ 0.56 gpt Au, 243 gpt Ag (including 9.3 m @ 2.06 gpt Au, 973 gpt Ag); 9.4 m @ 0.10 gpt Au, 45 gpt Ag; 6.8 m @ 0.12 gpt Au, 136 gpt Ag; 4.8 m @ 0.25 gpt Au, 88 gpt Ag; 14.4 m @ 0.17 gpt Au, 49 gpt Ag; 35.2 m @ 0.17 gpt Au, 43 gpt Ag. “Three of the four major veins (Salomon, Guitarrillas and Los Chivos) appear to converge into a 100m wide zone at the western end of the El Favor deposit in the vicinity of the Hundido Pit….”.
Silver Dollar Resources Inc. entered into a formal surface access agreement with the ejido Noria de Pilares, at its La Joya project in Durango.
Oroco Resources Corp. received approval by SEMARNAT to conduct a drilling program at its Santo Tomas project in Sinaloa. The permit allows for 46 drill locations to test the Brasiles gossan zone and the Western blind target, both supported by a 3D IP survey, and nine drill locations on the North zone for confirmation and expansion drilling.
ON DEALS AND CORPORATE ISSUES
Vizsla Silver Corp. informed on the approval of the proposed plan of arrangement on which Vizsla Silver is to spin-out its British Columbia exploration assets to Vizsla Copper Corp. (Panuco, Sinaloa).
Fortuna Silver Mines Inc. and Roxgold Inc. informed two leading proxy advisory firms have recommended that both Fortuna and Roxgold shareholders vote for the proposed business combination (San Jose, Oaxaca).
Benjamin Hill Mining Corp. announced the appointment of David M. Jones, M.Sc., as technical advisor to the company (Sonora Gold, Sonora).
Orogen Royalties Inc. announced its shares have been qualified to trade on the OTCQX Best Market (Ermitaño, Sonora).
ON SOCIAL RESPONSIBILITY
Peñasquito informed its water purification plant in Cedros has increased its capacity to 400 cubic meters per day. The community, which doubled its population since the development of the mine, receives the water at no cost. There are two other water purification plants run by the company at the Mesas and Charcos communities.
Greath Panther Mining published its 2020 sustainability report, describing its safety performance, Covid prevention, zero sanctions, decrease in water consumption, community engagement, gender opportunities and diversity policy.
The Chihuahua Mining Cluster is aiding in the community effort to extinguish forest fires in the Sierra Madre.
Newmont Corp. launched its first Climate Strategy Report, which outlines the Company’s climate-related risks and opportunities, strategic planning, and pathways to achieving climate targets.
Industrias Peñoles informed on the reforestation effort with native species in La Laguna region (Coahuila-Durango).
Peñoles and Fresnillo PLC are to support micro business and auto-development economic proyects in Caborca, Sonora.
On the image below: Sheeted quartz veining in granodioritic intrusive rocks in Sinaloa. Picture by Jorge Cirett.
During the 21st week of the year (May 24th to May 30th, 2021), at least 33 press releases were announced by companies working in Mexico. To note, seven companies posted exploration advances on their properties, three presented mining related news, seven posted on financing (C$6M, $60 M, C$5 M, C$10 M, $2.6 M, $C$11.5 M) and one on share distribution, six more on project development or resource definition and two posted on corporate issues. ON MEXICO ISSUES, CanCham complained on the lack of clear policies and opacity on the rule of law that are affecting Canadian investments in Mexico. The push from the Mexican government to create an institution to manage the lithium industry from the optics of sovereignty sees opposition from the mining industry, and reality. Camimex released a list of mining investments to be realized in the next few years, amounting to several billion dollars. ON EXPLORATION, in Sonora, Ridgestone Mining applied for drilling permits at Rebeico. Tocvan Ventures released results from drilling at Pilar. In Chihuahua, Kootenay Silver released high-grade results from drilling at Columba. In Durango, Mithril Resources, updated on drilling at Copalquin. In Sinaloa, Riverside Resources released surface sample results; Vizsla Silver informed on geophysical results supported by drilling, and more surveys to come; Brigadier Gold discovered bulk tonnage copper mineralization in trenching of soil anomalies. ON MINING, Impact Silver and Telson Mining presented Q1 2021 results. Magna Gold informed it has exceeded 3 M man-hours of work without lost-time incidents. ON FINANCING, Silver Bull Resources is to distribute 34.2 M shares of Arras Minerals among its shareholders. Six companies informed on financing rounds: Silver Viper Minerals (C$6 M), Vizsla Silver ($60 M), Reyna Silver (C$5 M), Sable Resources (C$10M, Defiance Silver (C$11.5 M) and Mammoth Resources ($2.58 M). ON RESOURCES AND DEVELOPMENT, Prime Mining released drilling results from Los Reyes. GR Silver Mining reported near surface drill results from Plomosas. GoGold Resources released drilling results from the Casados deposit at Los Ricos North. Discovery Silver released results from 12 drill holes targeting high-grade vein trends at Cordero. Sailfish Royalty filed a technical report with a new resource estimate for Gavilanes. Discovery Silver updated on exploration at Cordero, with 75,000 m of drilling completed on 178 holes, and four drills continuing the phase 2 program. Golden Tag announced the discovery of a shallow zone of epithermal mineralization at San Diego. ON DEALS AND CORPORATE ISSUES, Mexus Gold informed Fresnillo PLC is reviewing its Santa Elena mine. Riverside Resources announced BHP is funding a third year of generative work in Sonora. ON SOCIAL RESPONSIBILITY, Peñoles and Fresnillo PLC informed on their policies and programs to aid in education on a wide range of communities. Minera San Xavier informed Cerro San Pedro in San Luis Potosi has been declared as “Cyanide Free Site” by the International Cyanide Management Institute.
ON MEXICO ISSUES
CanCham (Cámara de Comercio de Canadá en México) pointed out that the lack of clear policies and the opacity on rule of law is affecting Canadian investments, which show an 18% decrement in the last year, holding the investment of thousands of millions (Mexican number notation) of dollars in the energy, mining, pharmaceutical and agricultural sectors. These remarks were expressed by Enrique Zorrilla, Cancham’s president, in the meeting between the Commerce ministers of Mexico, Canada and the United States.
Mexico is preparing its strategy to develop the lithium market. The federal government intends to become a lithium producer by controlling several deposits, Bolivia’s advice and a commerce treatise to facilitate establishing an electric battery factory. The current government senate fraction is preparing a proposal to create the Instituto Nacional del Litio. (Lithium National Institute) and to declare lithium as Nation’s exclusive property (Note. – This federal initiative push misses the point that so far there is not a single lithium mine in Mexico, that its lithium in brines potential is limited at best, and that the economics of lithium extraction from clays -like in the Bacanora Lithium’s deposit in Sonora- is not yet clear).
Fernando Alanís, president of Camimex (Cámara Minera de México) informed that lithium deposits in Mexico have a very low grade, and lack the technology for its extraction, reason for which the country is far from becoming a world power in lithium production. Lithium presents in three kind of deposits: hard rock (pegmatites), brines (from salt lakes) and clays. Rock and brine lithium extraction accounts for 100% of the world production, whereas the extraction of lithium from clays is very energy intensive and expensive, not having a single producing mine in the entire planet.
Camimex released a table with the Mexican Mining Developments programmed for the next few years, same that reach US$7,820 Million in investment (Mexican number notation, equivalent to US$7.8 billion).
Mithril Resources Ltd. provided an update on drilling at its Copalquin project in Durango. The current program main focus is to extend the Refugio ore shoot down dip (presently 600 m along strike, 200 m down dip, 5 m in width), maiden drilling at Los Pinos target, extend three holes and deep exploration drilling at La Soledad and extend near-surface intercepts at El Cometa.
Ridgestone Mining Inc. commenced permitting for drill programs at Guadalupe y Calvo, Chihuahua, and Rebeico, Sonora.
Riverside Resources Inc. reported surface sample results from its La Silla project in Sinaloa. The highlighted samples from the El Ciruelo and El Roble targets returned 6.1 gpt Au, 80 gpt Ag; 5.6 gpt Au, 81 gpt Ag; 4.4 gpt Au, 35 gpt Ag; 3.5 gpt Au, 26 gpt Ag; 3.3 gpt Au, 20 gpt Ag; 2.6 gpt Au, 41 gpt Ag, on quartz veining, gossanous breccia and strongly oxidized andesite. El Ciruelo target extends for at least 1 km with a 1-5 m wide chalcedonic vein zone. El Roble vein extends for at least 300 m, reaching up to 2 m in width, with mineralization occurring also in the host rock.
Vizsla Silver Corp. provided an update on the recently completed geophysical survey completed at Panuco, in Sinaloa. A fixed loop electromagnetics (FLEM, or EM) was trialed and detected massive sulfide mineralization on the Napoleon and Josephine veins, proved with three massive sulfide intercepts in the latter. The Josephine vein has no known surface expression and runs parallel to the west of the main Napoleon trend. Mineralization at Tajitos is not related to massive sulfides and was not detected with EM. Vizsla is planning a property wide airborne EM-magnetic survey at Panuco.
Kootenay Silver Inc. announced high-grade results from the 5,000 m core drill program currently underway at Columba, Chihuahua. Highlighted core length intervals in the Hanging-Wall, F, and Footwall veins comprise 1.55 m @ 189 gpt Ag, 0.1%Pb, 0.2% Zn; 1.0 m @ 104 gpt Ag, 0.1% Zn; 2.44 m @ 217 gpt Ag, 0.1% Pb, 0.1% Zn; 2.94 m @ 321 gpt Ag, 0.2% Pb, 0.6% Zn (including 1.94 m @ 428 gpt Ag, 0.3% Pb, 0.7% Zn); 8.0 m @ 130 gpt Ag, 0.1% Pb, 0.2% Zn (including 2.9 m @ 265 gpt Ag, 0.1% Pb, 0.5% Zn); 1.95 m @ 104 gpt Ag, 0.1% Pb, 0.1% Zn; 9.0 m @ 354 gpt Ag, 0.1% Pb, 0.4% Zn (including 2.63 m @ 809 gpt Ag, 0.3% Pb, 0.4% Zn); 30.0 m @ 86 gpt Ag (including 2.37 m @ 425 gpt Ag, 0.2% Zn).
Brigadier Gold Ltd. announced the discovery of bulk tonnage type copper mineralization at its Picachos project in Sinaloa. Fifty meters on trenching of historic copper anomalies has returned XRF copper values ranging from 0.05 to 1.34% Cu and 20 to 284 ppm Ag. Brigadier has also completed mapping and sampling of the historic La Gloria mine, where a drill hole intercepted 1.0 m @ 6.26 gpt Au.
Tocvan Ventures Corp. released results for the first three holes of its phase-II drill program at Pilar, in Sonora. The drill program consists of 2,900 m of reverse circulation drilling in 17 holes, of which 14 are pending results. Highlighted down-hole intercepts comprise 29 m @ 0.71 gpt Au (including 6.1 m @ 1.9 gpt Au); 24.4 m @ 0.56 gpt Au (including 9.2 m @ 1.3 gpt Au, 14 gpt Ag); 6.1 m @ 0.48 gpt Au, 4 gpt Ag; 4.6 m @ 0.50 gpt Au, 11 gpt Ag.
Impact Silver Corp. presented its financial and operating results of Q1 2021. During the period 36.4 K tonnes were processed @ 162 gpt Ag to produce 156.9 K Oz Ag. “continued exploration on the north and south extensions of the Veta Negra Mine, trenching on the bulk tonnage gold target at Manto America in the central part of the district and exploration on the northwest (Pachuqueno) extensions of the Guadalupe Mine”.
Magna Gold Corp. has exceeded 3 M man-hours of work without lost-time incidents within all its operations, including contractors and suppliers. The last lost-time incident was in 2018, and the mine has not had a fatal accident in its 11 years history.
Telson Mining Corp. presented its first quarter 2021 financial and operating results. At Campo Morado in Guerrero, 174.4 K tonnes were processed to produce 11,013 tonnes Zn (74% Zn recovery), 1,908 tonnes Pb at cash cost $0.70 per Lb Zn and AISC of $0.90 per Lb Zn. During the period gross revenue was $21.2 M (Q1 2020: $19.0 M) and mine operating profit $5.25 M (Q1 2020: $0.26 M loss).
Silver Bull Resources Inc. announced its intent to distribute 34.2 M shares of Arras Minerals Corp. to Silver Bull shareholders. Silver Bull transferred mineral properties in Kazakhstan and received 36 M shares of Arras in return, making Arras an approximately 88%-owned subsidiary of Silver Bull (Sierra Mojada, Coahuila).
Silver Viper Minerals Corp. intends to undertake a non-brokered private placement financing to raise aggregate gross proceeds of up to C$6 M (La Virginia, Sonora).
Vizsla Silver Corp. entered into an agreement with Canaccord Genuity Corp.on behalf of a syndicate of underwriters to buy units of the company for gross proceeds of $60 M (Panuco, Sinaloa).
Reyna Silver Corp. entered into an agreement with Eight Capital and Red Cloud Securities Inc. in connection with a private placement intended to raise up to C$5 M (Guigui and Batopilas, Chihuahua).
Sable Resources Ltd. entered into an agreement with Sprott Capital Partners LP and Eight Capital in connection with a bought deal private placement financing to raise up to C$10 M (Vinata, Chihuahua).
Mammoth Resources Corp. Announced a non-brokered private placement financing aiming to raise up to $2 M, same that by the next day had been increased to $2.58 M (Tenoriba, Chihuahua).
Defiance Silver Corp. has increased the size of its previously announced private placement with Red Cloud Securities Inc. for gross proceeds of up to C$11.5 M (Bolañitos and Pinguico, Guanajuato).
ON RESOURCES AND DEVELOPMENT
Prime Mining Corp. released additional results from its ongoing 15,000 m drill program at Los Reyes, Sinaloa. The Highlighted true width intercepts are from the Guadalupe East, Zapote South and the Estaca vein: 11.6 m @ 8.12 gpt Au, 725 gpt Ag; 5.6 m @ 11.95 gpt Au, 1,221 gpt Ag; 2.1 m @ 21.63 gpt Au, 1,960 gpt Ag; 2.0 m @ 11.17 gpt Au, 909 gpt Ag; 2.4 m @ 2.00 gpt Au, 121 gpt Ag; 1.4 m @ 10.50 gpt Au, 300 gpt Ag; 3.9 m @ 0.45 gpt Au, 37 gpt Ag; 0.6 m @ 93.80 gpt Au, 829 gpt Ag.
GR Silver Mining Ltd. reported near surface drill results from the Plomosas mine area in Sinaloa. Highlighted true width intervals comprise 11.9 m @ 84 gpt Ag, 2.3% Pb, 2.7% Zn, 0.1% Cu; 16.7 m @ 7 gpt Ag, 0.22 gpt Au, 0.1% Pb, 0.3% Zn; 10.8 m @ 3 gpt Ag, 0.20 gpt Au, 0.1% Pb, 0.4% Zn; 4.2 m @ 10 gpt Ag, 0.09 gpt Au, 0.1%Pb, 0.6% Zn, 0.1% Cu; 2.1 m @ 350 gpt Ag, 1.0% Pb, 0.4% Zn; 1.9 m @ 348 gpt Ag, 0.3% Pb, 0.3% Zn; 1.3 m @ 26 gpt Ag, 0.19 gpt Au, 3.3% Pb, 3.3% Zn; 1.0 m @ 128 gpt Ag, 1.00 gpt Au, 9.0% Pb, 9.7% Zn, 0.2% Cu; 2.6 m @ 45 gpt Ag, 0.60 gpt Au, 3.0% Pb, 0.9% Zn; 4.7 m @ 187 gpt Ag, 0.18 gpt Au, 2.2% Pb, 1.2% Zn, 0.1% Cu; 2.0 m @ 277 gpt Ag, 0.22 gpt Au, 0.2% Pb, 0.4% Zn; 1.9 m @ 283 gpt Ag, 0.82 gpt Au, 0.3% Pb, 1.0% Zn, 0.1% Cu.
GoGold Resources Inc. released results of nine holes on the Casados deposit at the Los Ricos North project in Jalisco. Highlighted core length intersects comprise 29.9 m @ 0.25 gpt Au, 70 gpt Ag; 15.5 m @ 0.27 gpt Au, 67 gpt Ag; 34.4 m @ 0.17 gpt Au, 67 gpt Ag; 5.3 m @ 0.65 gpt Au, 305 gpt Ag; 9.2 m @ 0.24 gpt Au, 109 gpt Ag (including 1.9 m @ 0.61 gpt Au, 442 gpt Ag); 60.5 m @ 0.21 gpt Au, 44 gpt Ag; 2.1 m @ 0.57 gpt Au, 322 gpt Ag; 54.1 m @ 0.37 gpt Au, 92 gpt Ag; 28.5 m @ 0.43 gpt Au, 100 gpt Ag (including 1.8 m @ 2.09 gpt Au, 418 gpt Ag); 14.0 m @ 0.46 gpt Au, 134 gpt Ag (including 5.3 m @ 1.04 gpt Au, 304 gpt Ag); 2.6 m @ 2.93 gpt Au, 610 gpt Ag.
Discovery Silver Corp. released results from 12 diamond drill holes testing the Josefina and Todos Santos high-grade vein trends at the Cordero project in Chihuahua. Highlighted intercepts on the Josefina vein trend comprise 41.5 m @ 97 gpt Ag, 0.04 gpt Au, 1.0% Pb, 2.5% Zn (including 4.1 m @ 520 gpt Ag, 0.11 gpt Au, 3.0% Pb, 9.8% Zn and 3.3 m @ 182 gpt Ag, 0.09 gpt Au, 3.4% Pb, 7.1% Zn); 13.1 m @ 112 gpt Ag, 0.13 gpt Au, 1.3% Pb, 2.2% Zn; 36.4 m @ 66 gpt Ag, 0.10 gpt Au, 0.3% Pb, 1.0% Zn; 87.4 m @ 38 gpt Ag, 0.06 gpt Au, 0.2% Pb, 1.0% Zn; 3.6 m @ 343 gpt Ag, 0.11 gpt Au, 1.7% Pb, 2.7% Zn; 19.3 m @ 40 gpt Ag, 0.06 gpt Au, 0.7% Pb, 1.4% Zn); 22.4 m @ 156 gpt Ag, 0.10 gpt Au, 1.7% Pb, 2.3% Zn (including 3.7 m @ 299 gpt Ag, 0.16 gpt Au, 3.9% Pb, 5.7% Zn). The Josefina vein trend includes two subparallel veins that run for 1.5 km, and has been tested to 370 m depth and remains open. The Todos Santos vein trend consists of two closely spaced veins, extends for at least 1.5 km along strike and 400 m of depth in old workings and drill holes. Highlighted intercepts comprise 62.0 m @ 19 gpt Ag, 0.28 gpt Au, 0.1% Pb, 2.0% Zn; 21.4 m @ 46 gpt Ag, 0.07 gpt Au, 0.8% Pb, 1.3% Zn; 1.9 m @ 113 gpt Ag, 0.04 gpt Au, 2.4% Pb, 3.2% Zn; 3.7 m @ 96 gpt Ag, 0.07 gpt Au, 1.8% Pb, 3.0% Zn; 2.1 m @ 160 gpt Ag, 0.27 gpt Au, 3.3% Pb, 3.6% Zn.
Sailfish Royalty Corp. filed a NI-43-101 technical report and estimate of mineral resources for the Gavilanes project in Durango.
Discovery Silver Corp. updated on its Cordero project in Chihuahua and informed that by the end of the first quarter 2021 had cash and cash equivalents for $94.7 M. At Cordero 75,000 m of drilling were completed in 178 holes in phase 1 drilling, providing information to be used in the bulk-tonnage preliminary economic assessment (PEA) underway. Phase 2 drilling continues with four rigs, focused on reserve definition, resource expansion and high-grade vein delineation. Bulk tonnage targeted drilling has returned up to 128.2 m @ 65 gpt Ag, 0.05 gpt Au, 1.2% Pb, 1.3% Zn; 131.6 m @ 48 gpt Ag, 0.09 gpt Au, 0.5% Pb, 1.1% Zn (including 37.1 m @ 119 gpt Ag, 0.22 gpt Au, 1.0% Pb, 1.2% Zn); 110.0 m @ 37 gpt Ag, 0.04 gpt Au, 0.8% Pb, 1.0% Zn; 85.6 m @ 53 gpt Ag, 0.05 gpt Au, 1.4% Pb, 1.7% Zn. Drilling on high-grade veins has returned up to 4.1 m @ 520 gpt Ag, 0.11 gpt Au, 3.0% Pb, 9.8% Zn in the Josefina vein; 4.0 m @ 377 gpt Ag, 0.28 gpt Au, 7.1% Pb, 3.4% Zn in the Todos Santos vein and 4.4 m @ 246 gpt Ag, 0.39 gpt Au, 6.5% Pb, 0.4% Zn on the Parcionera vein.
Golden Tag Resources Ltd. discovered a new zone of epithermal mineralization at the San Diego project in Durango. The new drill hole intercepted 10.0 m @ 0.55 gpt Au, 628 gpt Ag, 1.1% Pb, 3.6% Zn, 0.12% Cu, in a zone where previous drilling had returned 2.0 m @ 0.33 gpt Au, 161 gpt Ag, 0.3% Pb, 0.2% Zn, 0.04% Cu; 3.75 m @ 0.32 gpt Au, 125 gpt Ag, 1.5% Pb, 4.0% Zn, 0.12% Cu. “The hole intersected a series of epithermal breccias and quartz-carbonate veins within the Central Diorite intrusion from 73.0 to 92.70 m which are characterized by cavity filling banded quartz and carbonate veins with fluorite and associated sulfides comprised primarily of pyrite, sphalerite, galena, boulangerite, and arsenopyrite”.
ON DEALS AND CORPORATE ISSUES
Mexus Gold US. informed personnel from Fresnillo PLC is reviewing its Santa Elena mine in Sonora. The geologists are checking the potential for a disseminated deposit, as well as the quartz vein currently worked by Mexus.
Riverside Resources Inc. announced BHP and Riverside “have agreed on moving forward with a third year of generative funding for copper exploration in Sonora. The new budget is US$1.3 M for generative exploration work.
ON SOCIAL RESPONSIBILITY
Peñoles and Fresnillo PLC informed on their policies and programs to aid on education in a widespread communities.
Minera San Xavier has been declared as “Cyanide Free Site” by the International Cyanide Management Institute. Cerro San Pedro is the first mine in the world that has realized the dismantling process of the 110 m high heap that covers 102 hectares (1 square kilometer).
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: Quartz-tourmaline breccia from a project in Sinaloa. Picture by Jorge Cirett.
During the 9th week of the year (March 1st to March 7th, 2021), there were at least 34 press releases by companies working in Mexico. To note, ten companies posted exploration advances on their properties, three presented quarterly results, five posted on financing or share options (for C$2.25 M, C$23 M and C$12 M), three more on project development and six on corporate issues. ON MEXICO ISSUES, the Zacatecas government is promoting talks between Canadian mining companies and mining concession owners. Mining companies raise US$280 million for Mexican projects. First Majestic initiated and arbitration process under NAFTA against the Mexican government. ON EXPLORATION, in Sonora, Silver Viper presented the highest gold results in drilling to date at La Virginia; Heliostar Metals commenced drilling at La Lola and started exploration at Cumaro and Oso Negro; Tocvan Ventures informed on detailed mapping and sampling at Pilar. Tarachi Gold started the second phase underground drilling campaign at La Dura mine at its Tarachi project. In Chihuahua, Kootenay Silver initiated the second phase drilling at Columba; Mammoth Resources began an IP survey at Tenoriba. Monarca Minerals is seeking a key surface access permit at San Jose. In Sinaloa, Oroco Resource conducted a helicopter magnetic survey at Santo Tomas. In Zacatecas, Zacatecas Silver is to explore the Zacatecas Silver project; Alien Metals commenced drilling at Donovan 2. ON MINING, Endeavour Silver, Fresnillo PLC and Great Panther Mining released quarterly and/or full year 2020 reports. ON FINANCING, One World Lithium, Silver Tiger Metals and Santacruz Silver Mining released news on their financing rounds for C$2.25 M, C$23 M and C$12 M respectively. Zacatecas Silver started trading on the TSX. Candelaria Mining granted options for 1 M shares. ON RESOURCES AND DEVELOPMENT, Sonoro Gold released metallurgical tests results from Cerro Caliche. GR Silver released results from one drill hole at Plomosas. Galore Resources released results from five holes drilled in 2019. ON DEALS AND CORPORATE ISSUES, Empress Royalty is acquiring a silver stream on production from Telson’s Tahuehueto mine in Durango. Orex Minerals is in a 40-60 joint venture with Pan American Silver to explore the Sandra Escobar project in Durango. Ganfeng´s increased interest (to 50%) in Bacanora Lithium has been authorized by China. First Majestic Silver requested an arbitration procedure under NAFTA regarding a tax dispute with the Mexican government. Silver One Resources completed the sale of three properties to Silverton Metals, which in turn completed its qualifying transaction. ON SOCIAL RESPONSIBILITY, Peñoles, Fresnillo PLC and First Majestic Silver informed on actions and awards received by the companies relating to social responsibilities.
ON MEXICO ISSUES
The Zacatecas government is promoting talks between Canadian mining companies and mining concession owners.
Mining companies raise US$480 million for Latin America projects. Gold and silver projects obtained US$194 million and US$121 million respectively. Most of that amount is directed to Mexico (US$280 M), Argentina (US$88.6 M), Brasil (US$42.8 M) and Chile (US$26.7 M). Specific projects financed include Las Chispas (Sonora), San Antonio (Sonora), Tahuehueto (Durango) and Cordero (Chihuahua).
First Majestic initiated and arbitration request under NAFTA against the government of Mexico. The request comes after failed attempts by the company to engage in negotiations with the government.
Silver Viper Minerals Corp. reported good drilling results from its La Virginia project in Sonora. Highlighted true width intervals comprise 80.08 m @ 18 gpt Ag, 0.69 gpt Au; 11.89 m @ 363 gpt Ag, 21.2 gpt Au (including 0.3 m @ 738 gpt Au, 10,681 gpt Ag, 6.74% Pb, 7.11% Zn); 28.95 m @ 44 gpt Ag, 0.77 gpt Au; 10.16 m @ 42 gpt Ag, 1.06 gpt Au; 0.92 m @ 231 gpt Ag, 11.80 gpt Au; 2.59 m @ 52 gpt Ag, 0.94 gpt Au; 1.52 m @ 78 gpt Ag, 1.07 gpt Au. “The upper portions of hole LV21-289 (azimuth 090, dip -450 ) encountered mineralized stringer intervals thought to represent the southern projection of the Western Zone. More consistent mineralization was encountered starting at 280 metres down hole, returning a down hole length measuring 130 metres core length with an average grade of 18 g/t silver and 0.69 g/t gold. Beneath this interval, a well mineralized breccia zone was encountered, starting at 424.85 metres down hole for 19.30 metres core length averaging 363 g/t silver and 21.2 g/t gold, and thought to represent the projection of El Rubi structure”.
Zacatecas Silver Corp. described its Zacatecas Silver Project in Zacatecas. The 7,826 ha Zacatecas Silver property in the Zacatecas district, includes the Panuco deposit and the Muleros, El Cristo and San Manuel-San Gill prospects. Panuco has an historic resource of 19.47 M Oz Ag in 3.95 M tonnes @ 153 gpt AgEq (136 gpt Ag, 0.01% Pb, 0.11% Zn). At Muleros three veins can be traced for 3 km; El Cristo is the NW extension of the Veta Grande system, same that is reported to have produced over 200 M Oz Ag; San Manuel-San Gill is a relatively unexplored vein system and an 800 m long hematitic breccia is also present.
Alien Metals Ltd. announced the commencement of its drilling program at the Donovan 2 copper gold project in Zacatecas. The 2,500 m of drilling is to test targets defined by an IP geophysical survey conducted late in 2020. “Pursuant to the terms of the Earn-in Agreement, Capstone can acquire a 65% interest in Donovan 2 through committed expenditure and cash payments totalling ~US$3.9million. Capstone can move to an 80% interest in the Project through free-carrying Alien to completion of a prefeasibility study”.
Kootenay Silver Inc. initiated a 5,000 meters core drilling program at Columba, Chihuahua. “The program will focus on step out and infill drilling on impressive results to date in the high-grade F vein and its associated hanging wall vein, a new discovery blind to surface. Focus will then shift to expanding on numerous other high-grade results such as found in holes CDH 20-030 (415 gpt silver over 11.15 meters including 721 gpt silver over 4.07 meters) in the JZ area and CDH 20-082 (1,186 gpt silver over 4.6 meters) in the B Vein”.
Oroco Resource Corp. completed the airborne component of a helicopter magnetics survey over the Santo Tomas project in Sinaloa. The survey comprised 2,231 line-kilometers with tie-line separations of 50 m and 500 m in east-west and north-south orientations respectively; processed results are to be received within two months. Meanwhile, 3D IP surveys continue on the Brasiles zone. Oroco holds a 61.4% interest that can be increased to 81.0% in the core 1,173 ha of the Santo Tomas project, and a 77.5% interest in 7,808 ha surrounding and adjacent to the core concession.
Mammoth Resources Corp. has begun induced polarization/magnetometer surveys to infill most of the 60% of the 6-kilometer trend not covered by the previous geophysical survey at Tenoriba, Chihuahua. A total of approximately 70 line-kilometers are to be completed.
Heliostar Metals Ltd. commenced exploration of its projects in Sonora. An initial 1,500 m drilling program has begun at La Lola, focusing in the up to 40 meters wide La Barra vein and its potential to depth. At Cumaro, will map and sample extensions to veins that have ore grade intercepts on the neighboring SilverCrest’s Picacho property. “Exploration at the Oso Negro project will focus on mapping and sampling outcropping veins that yielded samples up to 2,680 grams per tonne (g/t) silver and 100.5 g/t gold. These veins have never been drilled”.
Tocvan Ventures Corp. informed detailed mapping and sampling of key targets areas have taken place at its Pilar project in Sonora. The aim of the work is to advance these targets to drill ready status, for a phase II drill program. The Main Zone Extension comprises 800 m southeast of the Main Zone, with highly anomalous gold in soils and rock grab samples and an historic hole with a 13.5 m @ 5.6 gpt Au, 22 gpt Ag intercept. The 4-Trench zone is a 600 m trend with highly anomalous gold in soils and rock grab samples and an historic hole intercept of 7.5 m @ 3.3 gpt Au, 31 gpt Ag. The project has over 17,700 meters of historic core and RC drilling, with intercepts of up to 61 m @ 0.8 gpt Au; 16.5 m @ 53.5 gpt Au, 53 gpt Ag; 13 m @ 9.6 gpt Au; 9 m @ 10.2 gpt Au, 46 gpt Ag.
Monarca Minerals Inc. continues to advance the permitting process for drilling of the San Jose project in Chihuahua (near the USA border). Currently the company is in negotiations with the authorities of communal lands for their permit to proceed with drilling activities in their land.
Tarachi Gold Corp. started the second phase of underground drilling at the historic La Dura mine at its Tarachi project in Sonora. “In addition to the underground drilling at La Dura, a surface RC drill rig will be mobilized to the Jabali mineral concession in mid-March to test the 400m-long area between the La Dura mine and the artisanal workings at Zaragoza…”.
Endeavour Silver Corp. released its financial results for the Q4 and 2020 full-year. The company operates three mines in Mexico: Guanaceví in Durango, Bolañitos in Guanajuato and El Compas in Zacatecas. The company produced 3.5 M Oz Ag, 37,139 Oz Au (7.1 M Oz AgEq) at cash cost $5.55 per Oz Ag and at an all-in sustaining cost of $17.59 per Oz Ag, both net of gold credits. The year-end balance sheet was $61.1 M, with working capital at $70.4 M and a long term debt of $6.1 M.
Fresnillo PLC. Presented its financial results for 2020, a year during which it produced 53 M Oz Ag and 769.6 K Oz Au. At Fresnillo, cash cost stands at $5.9 and AISC at $12.92 per silver ounce; At Saucito, cash cost stands at $0.8 and AISC at $6.94 per silver ounce. At San Julián Veins (Chihuahua), cash cost stands at ($6.0) and AISC at $5.04 per silver ounce; At San Julián DOB (Chihuahua), cash cost stands at $7.0 and AISC at $8.85 per silver ounce; At Ciénega (Durango), cash cost stands at ($276.2) and AISC at $618.32 per gold ounce; At Herradura (Sonora), cash cost stands at $727.9 and AISC at $881.92 per gold ounce; Finally, at Noche Buena (Sonora), cash cost stands at $1,158.5 and AISC at $1,502.92 per gold ounce. Exploration expenses for the year were $107.3 M. Shafts at Fresnillo and Juanicipio are being bored to 1,000 meters of depth; commissioning of Juanicipio is expected for Q4 2021, with a forecasted yearly production of 11.7 M Oz Ag, 43.5 K Oz Au. “the longer-term prospects for gold are good, supported by the potential new mines at Rodeo and Orisyvo”. Cash position at the end of the year was US$1,070 M.
Great Panther Mining Ltd. reported consolidated financial results for 2020, including figures from its Topia (Durango) and Guanajuato Mine Complex operations in Mexico. During the period 50,868 tonnes were mined in Mexico, milling 49,498 tonnes @ 270 gpt AgEq.
Zacatecas Silver Corp. announced its common shares have begun trading on the TSX Venture Exchange (Zacatecas Silver, Zacatecas).
One World Lithium Inc. closed its previously announced C$1.5 M non-brokered private placement with an oversubscription that brought the total in gross proceeds to C$2.25 M. The company granted incentive stock options to certain of its directors, officers, management and consultants (Salar del Diablo, Baja California).
Silver Tiger Metals Inc. closed it previously announced bought deal offering for gross proceeds of C$23 M. The underwriters were paid a 6% commission on the gross proceeds (El Tigre, Sonora).
Candelaria Mining Corp. granted incentive stock options to employees, directors and officers of the company for 1.02 M shares (Pinos, Guanajuato; Caballo Blanco, Veracruz).
Santacruz Silver Mining Ltd. announced a non-brokered private placement intended to raise up to C$12 M (Zimapan, Hidalgo).
ON RESOURCES AND DEVELOPMENT
Sonoro Gold Corp. reported on metallurgical studies realized at Cerro Caliche Sonora. Bottle roll tests were realized on sample materials from the Japoneses, Cuervos, El Colorado/Cabeza Blanca and Buena Suerte zones, resulting in 80.3% recoveries for gold and 27.2% for silver.
GR Silver Mining Ltd. reported high-grade results from one drill hole in the San Juan area at Plomosas, Sinaloa. The highlighted core-length intercept is 5.7 m @ 611 gpt Ag, 0.04 gpt Ag, 0.5% Pb, 1.7& Zn, 0.1% Cu (685 gpt AgEq), including 1.7 m @ 1,762 gpt Ag, 0.10 gpt Au, 1.3% Pb, 4.9% Zn, 0.2% Cu and 0.7 m @ 3,755 gpt Ag, 0.03 gpt Au, 2.5% Pb, 9.7% Zn, 0.5% Cu.
Galore Resources Inc. announced the return of field work and the recent receipt of additional assays from five holes of the drill program executed at El Alamo during 2019. A loan from the CEO, Mike McMillan provided the necessary funds for logging and assaying of the 2019 core. Highlighted core length intervals comprise 21.20 m @ 0.69 gpt Au, including 1.20 m @ 8.89 gpt Au; 4 m @ 0.54 gpt Au; 10.21 m @ 1.14 gpt Au, including 1.10 m @ 4.70 gpt Au; 59.85 m @ 0.32 gpt Au, including 3.2 m @ 1.07 gpt Au.
ON DEALS AND CORPORATE ISSUES
Empress Royalty Corp. is in advanced discussions to acquire a US$5 M silver stream on production from Telson Mining Corp.’s Tahuehueto project in Durango. “The Stream is expected to be on 100% of the payable silver production from Tahuehueto for the first 1,250,000 payable ounces; thereafter, the percentage will step-down to 20% of the payable silver production”.
Orex Minerals Inc. entered into an agreement with Pan American Silver Corp. to further explore and develop the Sandra-Escobar Project, in Durango. “The Project is a consolidation of two groups of claims, each controlled by the two Joint Venture participants. Orex and Pan American own a 40% and 60% interest, respectively, in Empresa Minera Sandra-Escobar, S.A. de C.V. (the “Joint Venture Company”), the new joint venture company formed to hold the Project. Orex will be the initial operator of the Project”.
Bacanora Lithium PLC. informed the receipt of all relevant approvals and consents from the authorities in the People’s Republic of China and receipt of funds by Sonora Lithium Ltd.. These were conditions for the completion of the increased investment in Sonora Lithium by Ganfeng Lithium Co. Ltd., resulting in Ganfeng owning 50% of the share capital of Sonora Lithium (Sonora Lithium, Sonora).
First Majestic Silver Corp. submitted a request for arbitration to the International Centre for Settlement of Investment Disputes based on Chapter 11 of the North American Free Trades Agreement (NAFTA). The government of Mexico has refused to engage in negotiations to resolve the dispute. “The Company believes that the Government’s actions are contrary to the terms of the Advance Pricing Agreement, which established the methodology for determining PEM’s revenues and taxes for the 2010 to 2014 fiscal years, and which, according to the Company’s Mexican counsel remains valid in accordance with the Mexican Federal Tax Code unless and until it is nullified by a final instance Court. In addition, the Government of Mexico has refused to participate in the Mutual Agreement Procedures under three international double-taxation treaties signed by Mexico” (San Dimas, Durango).
Silver One Resources Inc. completed the sale of its Mexican silver exploration projects to Silverton Metals Corp.. for $6 M as follows: $1.25 M in cash on closing, issue 4.37 M shares, $750 K in cash at 18 months, $500 K in cash at 24 months and a 1.5% NSR, of which 1% can be bought back by Silverton with a payment of US$500 K for each of the properties (see below).
Silverton Metals Corp. (formerly Plymouth Realty Capital Corp.) and Silver One Resources Inc. announced that Silverton has completed its previously announced qualifying transaction with the acquisition of Silver One’s Peñasco Quemado (Sonora), La Frazada (Nayarit) and Pluton (Durango) projects.
ON SOCIAL RESPONSIBILITY
Peñoles and Fresnillo PLC informed on actions on biodiversity conservation activities at each of its operations in Mexico.
The Ethisphere Institute released a list of 135 companies that have ethics as one of its key directives in the world, which includes two Mexican companies: Grupo Bimbo and Fresnillo, with the latter being one of only three companies from the mining industry.
First Majestic Silver Corp. received the 2021 Socially Responsible Business Distinction Award (Reconocimiento de Empresa Socialmente Responsable) granted by the Mexican Centre for Philantropy and the Alliance for Corporate Social Responsibility. The awards were for its three operating mines: San Dimas (Durango), Santa Elena (Sonora) and La Encantada (Coahuila).
During the 40th week of the year (September 28th to October 4th, 2020), at least 40 press releases were announced by companies working in Mexico. To note, five companies posted exploration advances on their projects, ten companies posted news related to financing or share structure, and seven on their projects development. ON MEXICO ISSUES, the Mining Fund is gone. A new special force was created to aid protect mining companies from criminal gangs activities. Only nine percent of Mexico is under a current mining concession. The CTM asks for the continuation of the Mining Fund. Some 150 junior exploration companies have left Mexico. The Mining-Metallurgic production index grew by 6.2% in July. Sixteen municipalities in Hidalgo are to receive $48 M pesos from the Mining Fund. ON EXPLORATION, in Sonora, Colibri Resources completed a mag survey on Evelyn. Tocvan Ventures identified a pipe like structure at its Pilar project. In Sinaloa, Brigadier Gold commenced drilling at Picachos. In Durango, Mithril Resources released drilling results from Copalquin. In Oaxaca, Megastar Development team is back in the field at Yautepec and Magdalena. ON MINING, No relevant news. ON FINANCING, One World Lithium ($1.5 M), Plymouth Realty Capital ($10 M), Barksdale ($6.325 M), Santacruz Silver (CDN$9.5 M), Prismo Metals ($575 K), Endeavour Silver (US$60 M) released news regarding financing rounds. Candelaria Mining settled a $1.087 M debt with shares. Silver One granted options to its directors, officers, employees and consultants. Silver Dollar started trading at the OTCQB. ON RESOURCES AND DEVELOPMENT, GR Silver released underground channel sampling results. Consolidated Zinc presented the latest resource estimate at its Plomosas mine in Chihuahua, and announced the refurbishment of the processing plant at the site. Capitan Mining commenced resource expansion drilling at El Capitan, Durango. Azucar Minerals presented the initial resource estimate for the El Norte Zone of its El Cobre project in Veracruz. GoGold Resources released drilling results from its Los Ricos North project in Jalisco. Bacanora Minerals is focusing in engineering while the financing package is complete for its Sonora Lithium project. Golden Minerals released final results of its resource definition drilling program at the Rodeo project, Durango. ON DEALS AND CORPORATE ISSUES, Candente Gold signed the definitive agreement on the acquisition of the San Dieguito de Arriba plant in Nayarit. Silver One is selling its Mexican properties to Plymouth Realty Capital. Dyna Resources is trying to enforce in USA a favorable Mexican court ruling. Silver Spruce has recurred to force majeure clause for lack of access to its Pino de Plata property in Chihuahua. Reyna Silver entered into an option agreement to acquire the Reyna project in Chihuahua. ON SOCIAL RESPONSIBILITY. Fresnillo PLC, Minera Autlan, Minera Saucito and Industrias Peñoles informed on sustainability, health, safety, environment, social and governance programs.
ON MEXICO ISSUES
The Mining Fund is gone for good from the purpose it was created for: aiding the development of mining communities. Mining States and municipalities wonder what the destiny of more than $1,500 M pesos actually in the Fund. The actual federal government re-directed the use of the Mining Fund, with 85% going to the Education Secretariat, 5% to the Economy Secretary and 10% to federal government infrastructure programs.
A new special force for overseeing mining operations was formed by the federal government. The first 118 guards graduated from a special training course, and will be equipped with assault weapons. Heists by organized crime have plagued the industry in the last few years, with robberies of bullion in mining operations across several states.
The Economy Secretariat informed mining concessions cover only 9% of Mexico. Graciela Marquez, Secretary of Economy noted that 24 thousand current mining concessions cover 17 M hectares. The Director de Minas (reporting to Gabriela Marquez) pointed that they are following the president view of not granting more mining concessions, which is problem that will catch up in 10 years’ time with fewer new deposits to mine due to the lack of exploration.
The Confederacion de Trabajadores de Mexico (one of the largest union organizations in Mexico, best known as “CTM”) asked the federal government and the Deputies Chamber for the no disappearance of the Mining Fund.
Fernando Alanís Ortega from Camimex pointed out some 150 junior exploration companies have left Mexico due to the complex operative environment. Several companies have diversified their operations this year, with acquisitions in Canada and USA. The last company to divest its Mexican portfolio is Silver One, to focus on a project in Nevada.
The Mexican index of Mining-Metallurgic production increased by 6.2% in July, compared with the same month of 2019 and by 5.1% from July 2020 to the previous month.
Sixteen Municipalities in Hidalgo are to receive $48 M pesos from the Fund for Development of Mining Production Zones.
Brigadier Gold Ltd. commenced its maiden drill program at the 3,954 ha Picachos property in Sinaloa. The drilling of 5,000 m in 40 holes will test the San Agustín mine (underground rock chip sample of 1.2 m @ 73.4 gpt Au), and the the Mochomos (underground rock chip sample of 0.5 m @ 18.5 gpt Au, 570 gpt Ag), Tejones (underground rock chip sample of 1.0 m @ 28.6 gpt Au, 114 gpt Ag) and Fermin (underground rock chip sample of 1.0 m @ 0.3 gpt Au, 268 gpt Ag) veins. “the Cocolmeca Vein system is comprised of several sub-parallel veins over a 1.5 kilometre (km) wide zone …… San Agustín is the best understood of these veins, mainly because it has been historically exposed underground by approximately 670 line-metres of tunnels, stopes and shafts”.
Colibri Resource Corp. received results from a high-resolution magnetic survey at its Evelyin property in Sonora. The interpretation of the magnetic data allowed the identification of three families of lineaments that are to aid in the definition and prioritization of targets.
Tocvan Ventures Corp. informed on new interpretations on all the information gathered on its Pilar project in Sonora. With the aid of geophysical, geochemical and structural specialists a conclusion was reached that a sub-vertical pipe-like feature may represent a breccia feeder pipe related to epithermal mineralization. The pipe is close to 100 m in diameter, oval shaped and dipping 70 degrees to the SSW.
Mithril Resources Ltd. Released results from nine more holes at La Soledad in the Copalquin project, Durango. Drilling confirmed the bonanza grades of the La Soledad vein and intercepted additional veins at depth and along strike. Highlighted results comprise 3.8 m @ 2.58 gpt Au, 143 gpt Ag; 0.5 m @ 6.78 gpt Au, 10 gpt Ag, an open working for 2.5 m and then 1.5 m @ 6.65 gpt Au, 18 gpt Ag; 2.82 m @ 2.37 gpt Au, 22 gpt Ag; 7.5 m @ 6.74 gpt Au, 158 gpt Ag.
Megastar Development Corp. reported its exploration team is back at the Yautepec and Magdalena projects in Oaxaca. So far, they have found “highly prospective ferruginous (iron-rich) carbonate sinters and fault-controlled quartz veining and breccias in discontinuous erosional windows under post-mineral volcanic rocks over areas of several hundreds of meters”. These findings correlate well with the envisaged uppermost levels of an epithermal system, the concept exploration model used at the site.
No Relevant News.
One World Lithium Inc. announced a non-brokered private placement for gross proceeds of up to $1.5 M (Salar del Diablo, Baja California).
Candelaria Mining Corp. closed the previously announced shares for debt transaction in settlement of $1.087 M of indebtedness (Pinos, Zacatecas).
Plymouth Realty Capital Corp. will complete a $10 M private placement funding (Peñasco Quemado, Sonora; La Frazada, Nayarit; Pluton, Durango).
Silver One Resources Inc. granted 2.575 M stock options to its directors, officers, employees and consultants (Peñasco Quemado, Sonora).
Fresnillo PLC. Is extended the expiration time on its tender offer to purchase for cash any and all of its outstanding US$800,000,000 principal amount of 5.5% Notes due 2023, to September 29. 2020 (La Herradura, Sonora).
Silver Dollar Resources Inc. started trading on September 30, 2020, in the United States on the OTCQB Venture Market (La Joya, Durango).
Barksdale Resources Corp. closed the final tranche of the company’s non-brokered private placement that raised $6.325 M (San Javier, Sonora).
Santacruz Silver Mining Ltd. Increased the size of its previously announced non-brokered private placement offering to CDN$9.5 M (Rosario, San Luis Potosi).
Prismo Metals Inc. completed its initial public offering (IPO) for gross proceeds of $575 K (Palos Verdes, Sinaloa).
Endeavour Silver Corp. entered into a sales agreement with BMO Capital Markets as the lead agent upon which the company can sell a number of common shares than can amount up to US$60 M (El Compas, Zacatecas; Terronera, Jalisco).
ON RESOURCES AND DEVELOPMENT
GR Silver Mining Ltd. announced favorable results from underground channel sampling on the lower level of the Plomosas mine in Sinaloa. Disseminated and massive mineralization is constituted by veins, stockworks and sulfide stringers that include chalcopyrite, sphalerite and galena in a brecciated tuff. Highlighted channel intervals comprise 2.6 m @ 504 gpt Ag, 14.6 gpt Au, 8.9% Pb, 6.6% Zn, 0.3% Cu; 15.7 m @ 90 gpt Ag, 2.5 gpt Au, 0.5% Pb, 1.3% Zn, 0.8% Cu: 5.4 m @ 147 gpt Ag, 10.0 gpt Au, 0.6% Pb, 3.3% Zn, 1.2% Cu; 7.8 m @ 50 gpt Ag, 2.9 gpt Au, 2.2% Pb, 7.3% Zn, 0.2% Cu; 6.0 m @ 66 gpt Ag, 6.2 gpt Au, 1.4% Pb, 3.9% Zn, 0.9% Cu.
Consolidated Zinc Ltd. presented a mineral resource estimate for the month of April 2020 for its Plomosas mine in Chihuahua. The indicated and inferred mineral resources comprise 964 K tonnes @ 13.2% Zn, 3.5% Pb, 20.6 gpt Ag that contain 127 K tonnes of zinc, 34 K tonnes of lead and 639 K Oz silver. The company is refurbishing the Plomosas beneficiation plant to process the ore at the site, for an estimated cost of US$1.35 M. The plant will start processing 3,000 tonnes per day (tpd), with the possibility of an expansion to 6,000 tpd.
Capitan Mining Inc. has commenced drilling at the Capitan project in Durango. The first phase comprises 6,000 m of reverse circulation drilling focused on step-out holes for resource expansion.
Azucar Minerals Ltd. completed its initial resource estimate for the Norte zone at El cobre project in Veracruz. “Copper and gold mineralization at the Norte Zone is associated with a multiphase variably potassic-phyllic altered porphyritic diorite intrusive complex that is cut by late mafic and intermediate dykes and post mineral feldspar porphyry. The Norte Zone is approximately 0.6 km x 0.4 km along an E-W strike. Sulphide mineralization, which extends up to 900 metres depth, consists of disseminated and vein-hosted chalcopyrite and trace bornite (Cu mineralization) exposed in surface outcrops and intersected in drill core”. The base case scenario considers indicated resources of 47.2 M tonnes @ 0.49 gpt Au, 0.21% Cu, 1.4 gpt Ag containing 1.17 M Oz AuEq and inferred resources of 26.9 M tonnes @ 0.42 gpt Au, 0.18% Cu, 1.3 gpt Ag, containing 1.35 M Oz AuEq.
GoGold Resources Inc. released drilling results from the La Trini deposit on the Los Ricos North project in Jalisco. Some of the highlighted results from 12 holes released comprise 22.5 m @ 1.37 gpt Au, 158 gpt Ag; 22.5 m @ 0.20 gpt Au, 48 gpt Ag; 44.5 m @ 0.84 gpt Au, 63 gpt Ag; 38.4 m @ 0.40 gpt Au, 30 gpt Ag; 29.6 m @ 0.42 gpt Au, 88 gpt Ag; 27 m @ 0.12 gpt Au, 48 gpt Ag; 7.9 m @ 0.86 gpt Au, 64 gpt Ag; 19.5 m @ 0.18 gpt Au, 83 gpt Ag; 21.8 m @ 2.73 gpt Au, 130 gpt Ag (including 5.6 m @ 9.40 gpt Au, 365 gpt Ag).
Bacanora Lithium PLC. Informed the company has a strong cash balance of US$44.4 M as of June 30, 2020, and retains a senior debt facility of US$150 M. At the Sonora Lithium project in Sonora, work is focused on finalizing engineering so that construction may commence after the financing package is completed.
Golden Minerals Co. released final assays from its resource definition program at the Rodeo project in Durango. Some of the true width (tw) highlighted intercepts comprise 15.8 m @ 2.05 gpt Au, 16 gpt Ag; 15.3 m @ 1.09 gpt Au, 4 gpt Ag; 25.5 m @ 2.49 gpt Au, 6 gpt Ag; 25.8 m @ 1.22 gpt Au, 5 gpt Ag; 15.6 m @ 0.78 gpt Au, 3 gpt Ag; 15.0 m @ 0.74 gpt Au, 3 gpt Ag; 7.7 m @ 0.98 gpt Au, 3 gpt Ag; 34 m @ 1.63 gpt Au, 6 gpt Ag; 49.5 m @ 1.77 gpt Au, 22 gpt Ag; 9.6 m @ 0.97 gpt Au, 2 gpt Ag; 25.8 m @ 3.10 gpt Au, 10 gpt Ag; 24.5 m @ 1.32 gpt Au, 5 gpt Ag; 28.0 m @ 1.96 gpt Au, 8 gpt Ag; 17.5 m @ 1.36 gpt Au, 5 gpt Ag. The resource the company is trying to improve was defined in 2017 at 0.4 M tonnes @ 3.3 gpt Au, 11 gpt Ag, containing 46 K Oz Au, 200 K Oz Ag.
ON DEALS AND CORPORATE ISSUES
Candente Gold Corp. signed the definitive agreement with Magellan Acquisition Corp. to earn up to 100% interest in the San Dieguito de Arriba beneficiation plant and the rights on the El Dorado property, both in Nayarit.
Silver One Resources Inc. entered into a letter of intent (LOI) with Plymouth Realty Capital Corp. to sell all its Mexican silver properties. In consideration for the properties Plymouth is to pay $1 M in cash and $5 M in shares. Plymouth Realty Capital will also change its name to Silverton Metals Corp. (Peñasco Quemado, Sonora; La Frazada, Nayarit; Pluton, Durango).
Dyna Resource Inc. announced the filing on August 28, 2020 in Dallas county, Texas, a petition for recognition of the USD$48 M foreign judgement against Goldgroup Resources Inc. in order to recognize in USA the judgment obtained in Mexico against Goldgroup Resources Inc. (the judgment relates to a legal challenge for the ownership of the San José de Gracia project in Sinaloa).
Silver Spruce Resources Inc. has “retained Mexico-based legal counsel to lead the discussions with representatives of the surface landowners of Pino de Plata in order to re-negotiate access rights to the ranch that covers the Pino de Plata project area”. The company’s purchase rights contract is now under a force majeure clause until access rights are granted by surface owners to continue exploration.
Reyna Silver Corp. announced the acquisition of the 300 ha La Reyna project in Chihuahua. The property is in the Cusihuiriachi (Cusi) silver district of low sulfidation epithermal mineralization. “La Reyna proper is a nearly north-south trending structure traceable as vein and altered outcrops for 4 km across the property. Two historic (1890s) shafts (La Reyna and Princesa) that extend to 133-150m depths exploited high-grade silver-rich mineralized shoots 2-5 m wide in the late 1800s”. The deal involves US$1.3 M in staged cash payments over four years and a 2.5% NSR. The payment on singing was US$30K that is to be followed by US$45 K in 6 months, US$75 K in 12 months, US$75 K in 18 months, US$120 K in 24 months, US$120 K in 30 months, US$150 K in 36 months and US$685 K in 48 months.
ON SOCIAL RESPONSIBILITY
Fortuna Silver Mines (San José mine in Oaxaca) signed an agreement with the Oaxaca Health Secretary and the San José del Progreso Municipality to help the community with the pandemic health emergency.
Minera Autlán donated 4,000 tree saplings to the Teziutlan Municipality in Puebla.
Minera Saucito informed on actions related to the fight against the pandemic in the Fresnillo Municipality in Zacatecas.
Industrias Peñolescelebrated 13 years of the inauguration of the Museum of Metals.
Industrias Peñoles informed in measures the company implements to reduce the use of water, and its treatment afterwards.
Fresnillo PLC is to distribute 20,000 face masks in Zacatecas city.
During the 38th week of the year (September 14th to September 20th, 2020), at least 38 press releases were announced by companies working in Mexico. To note, six companies posted exploration advances on their projects, fourteen companies posted news related to financing or share structure, and six on their projects development. Companies that raised funds include Southern Silver, Oroco Resource, Comet Resources, Consolidated Zinc, First Majestic, Defiance Silver, Argonaut Gold, GoGold Resources and Silver Dollar Resources. ON MEXICO ISSUES, Fortuna Silver tries to avoid an illegal blockade from occurring at its San José mine in Oaxaca. Mexico loses positions in the 2019 Fraser Institute ranking on mining regions. Cancham points out the Mexican mining environment is facing multiple challenges. Guanajuato intends to form a Mining Cluster. Fernando Alanís, Camimmex president clearly explained how mining concessions function in Mexico. ON EXPLORATION, in Sonora, Minaurum started the second phase drilling program at its Alamos Silver project. In Sinaloa, Brigadier Gold released surface sampling results from its Picachos property. In Zacatecas, Minera Alamos released results from historical drill holes at Cerro de Oro; Alien Metals released underground and surface sampling results from San Celso and Los Campos; Advance Gold informed on the drilling (providing no results) at Tabasqueña. In Guanajuato, VanGold Mining updated on exploration/development at El Pinguico. ON MINING, Mexus Gold is nearing the completion of a ball mill gravity gold recovery system at its Santa Elena mine in Sonora. Starcore International reported results for the last quarter. Excellon Resources provided production results for August 2020 from its Platosa mine in Durango. ON FINANCING, nine companies made announcements regarding the opening or closing of financing rounds: Southern Silver ($456 K), Oroco Resource ($7.26 M), Comet Resources (a streaming facility, up to $20 M), Consolidated Zinc (A$2 M), First Majestic (C$78 M), Defiance Silver (C$10 M), Argonaut Gold (C$10 M), GoGold Resources (C$30 M) and Silver Dollar Resources ($10.5 M). Silver Bull is going for a reverse stock split of 8 to 1. Canuc Resources and Solaris Resources are now trading at the OTCQB Venture Market. ON RESOURCES AND DEVELOPMENT, Discovery Metals released results from drilling at its Cordero project in Chihuahua. Almaden Minerals resumes exploration at its Ixtaca project in Puebla. GR Silver Mining released drilling results from its Plomosas project in Sinaloa. Magna Gold completed a pre-feasibility report on its San Francisco project in Sonora. Excellon recommenced underground and surface drilling at its Platosa mine, Durango. SSR Mining is extending a decline to drill, from the underground, high-grade portions of the mineral resource at Pitarrilla, Durango. ON DEALS AND CORPORATE ISSUES, Sonora Metals is changing name to Sonoro Gold. Barksdale Resources informed on title issues that have promoted some changes on how the deal is structured with Tusk Resources on the San Javier project in Sonora. Southern Silver informed it has closed the transaction to acquire Electrum’s 60% interest on Cerro Las Mintas project, Durango. Odyssey Marine Exploration filed the First Memorial on a case against Mexico, related to the lack of issuance of an environmental permit to mine a large off-shore phosphate resource. Excellon Resources informed on the results of litigation relating to a land surface purchase near its Platosa mine in Durango. ON SOCIAL RESPONSIBILITY. Fresnillo PLC, Fortuna Silver and Frisco informed on sustainability, health, safety, environment, social and governance programs.
ON MEXICO ISSUES
Compañía Minera Cuzcatlán (Fortuna Mines), called for the civil organizations promoting an illegal blockage of the San José mine in Oaxaca to reconsider its program. The blockage is being called to pressure the authorities on the delivery of resources, an issue completely unrelated to the mining company.
In 2019 Mexico fell nine positions, according to the Fraser’s Institute. Mexico’s shine to attract mining investment is getting dull with the lack of confidence and certitude derived of the president’s declarations on the review of mining concessions and the recent disappearance of the Mining Sub Secretary. The federal government has been clear, under his tenure no mining concessions are to be issued. The president has stated that up to 40% of the country ground has been under mining concessions, and that amount should suffice (for mining companies) for thousands of years.
Armando Ortega, president of the Mining Task Force of the Cámara de Comercio de Canadá en México (Cancham) stated that the mining environment in Mexico is not propitious because political signals of ideological nature are not favorable to investment, and some measures announced by the government are worrisome. Among the factors supporting its points are: initiatives to forbid open pit mining; initiatives to enlarge natural protected areas, encroaching to areas of active mining; the initiative to change the law on water use, changing its regime from concession to license; the stated fact by the president to not to grant a single mining concession during his tenure; the disappearance of the Mining Sub Secretary; the extortion by unions to companies, exemplified by the tricky wining by Napoleón Gómez Urrutia of the collective contract at is Cosalá mine complex in Sinaloa.
According to a Camimex post, projects that are coming into production include an expansion at Los Filos, Guerrero (Equinox Gold); Ixtaca, Puebla (Almaden Minerals); Camino Rojo, Zacatecas (Orla Mining); Las Chispas, Sonora (SilverCrest Metals); Santana in Sonora, La Fortuna in Durango and Cerro de Oro in Zacatecas (Minera Alamos).
Guanajuato announced its intention to conform a Mining Cluster.
Fernando Alanís, Camimex (Cámara Minera de México) president, explained some facts on how mining concessions function in Mexico. According to the constitution everything under the surface is property of the Nation, hence the permit needed to extract gas, oil, water or minerals by individuals or companies, permit that is precisely a concession. In mining the concession is a permit to explore and mine an ore deposit if found, it provides no rights for surface rights, reason for which an agreement has to be negotiated with the surface owner to access the land. He stressed that having a mining concession is no guarantee of finding an ore deposit. To keep a mining concession, the concessionaire has to pay every six months a due per hectare, due that increases with the age of the concession, to avoid speculative land grabs; and also the concessionaire has to comply with a minimum yearly investment that also increases with the age of the concession, again to avoid speculation. According to the DGM (Dirección General de Minas) 20.7 M hectares are concessioned in México, out of almost 200 M hectares in the country, meaning about 10.35% of the country is concessioned, of which only 1 M hectares include a project in exploitation. The government granting of mining concessions is the more efficient way to exploit the natural resources, letting others run the risks and expensive investments of exploration. The government receives the due payments, and in case of an ore body being found and a mine built, receive taxes for its operation. Mining is the economic activity that has the steepest rate of taxes and dues, which add up to 55% on the income of mining firms.
Brigadier Gold Ltd. released sampling results from two vein systems at its Picachos property in Sinaloa. Highlighted results comprise 7 m @ 160 gpt Ag, 0.6 gpt Au; 3 m @ 205 gpt Ag, 0.2 gpt Au; 0.5 m @ 356 gpt Ag, 6.6 gpt Au at the Garabato vein system, and 1.6 m @ 1.9 gpt Au, 98 gpt Ag, 0.6% Cu, 3.7% Pb, 1.5% Zn; 1.0 m @ 21.3 gpt Au, 5 gpt Ag, 3.2% Pb, 0.8% Zn; 0.2 m @ 56.7 gpt Au, 288 gpt Ag, 1.9% Cu, 5.9% Pb, 1.3% Zn at El Pino. The Garabato veins are coincident with a 20 ha soil anomaly that returned up to 36 ppm Ag, 366 ppm Cu, 1,049 ppm Pb, 1,184 ppm Zn. Three basins draining the El Pino vein system show stream sediment anomalies of up to 1.72 ppm Au, 0.9 ppm Ag, 597 ppm Pb and 329 ppm Zn.
Minaurum Gold Inc. announced the start of a 20,000 metre Phase II drilling program at its Alamos Silver project in Sonora. The program will commence with one rig offsetting an intercept of 8.25 m @ 1,760 gpt Ag on the Europa-Guadalupe veins, while a second rig will test targets at Promontorio, where recently acquired historical data revealed intercepts of up to 12.2 m @ 710 gpt Ag (Note.- Take a look to the press release, it is worth it).
Minera Alamos Inc. released additional historic drill data on the Cerro de Oro project in Zacatecas. The reverse circulation holes were drilled by a private operator in 2017-2018, to refine the previous drilling by Noranda in the 1990’s. Some of the highlighted results comprise 48 m 0.70 gpt Au; 112 m @ 0.42 gpt Au, 40 m @ 0.51 gpt Au; 64 m @ 0.38 gpt Au; 42 m @ 0.42 gpt Au; 100 m @ 0.42 gpt Au; 54 m @ 0.76 gpt Au; 102 m @ 0.38 gpt Au; 72 m @ 0.47 gpt Au; 56 m @ 0.47 gpt Au; 66 m @ 0.33 gpt Au; 96 m @ 1.10 gpt Au; 42 m @ 0.50 gpt Au.
Alien Metals Inc. informed on underground and surface sampling results from its San Celso and Los Campos projects in Zacatecas. At San Celso, underground sampling confirmed 2006 sample results, like 0.9 m @ 477 gpt Ag (0.5 m @ 422 gpt Ag on previous sample) and 1.4 m @ 225 gpt Ag (1.6 m @ 335 gpt Ag on previous sample). At Los Campos, dump sampling returned up to 0.3 gpt Au, 254 gpt Ag, 0.12% Pb, 0.07% Zn. The Nueva Andromeda claim, adjacent to San Celso, has been optioned.
VanGold Mining Corp. updated on exploration at its El Pinguico project in Guanajuato. Approximately 40 m have been sampled on a recently cleared section of the shaft, a 3D model is being generated, sampling for XRF sampling are being collected on #4 adit, and trenching of additional surface exposures and clearing of the #7 adit are being performed.
Advance Gold Corp. reported on the drilling done at its Tabasqueña project in Zacatecas. “Of the four holes drilled to date into the 3500-metre continuous IP chargeability anomaly, drill hole AGT-16 has encountered the best mineralization, including a 10.7 metre sulphide zone. Mineralization in this hole has zones of semi-massive pyrite, containing 15 to 30% pyrite, together with up to 3% sphalerite and some galena (core photos shown below and on company website). The first three holes intersected stacked lenses of disseminated sulphides and are around 3000 metres to the south of AGT-16”.
Mexus Gold US. is nearing the completion and test running of its high grade ball mill gravity gold recovery system at its Santa Elena mine in Sonora (not to mistake with First Majestic’s Santa Elena mine, also in Sonora). The company will mill material from a quartz vein with a 10 gpt Au cutoff, and recover the gold through the gravity system, while lower grade ore continues to be placed on the heap leach.
Starcore International Mines Ltd. Reported results of the first quarter ended July 31, 2020. Production during the period at its San Martin mine in Queretaro included the milling of 59.1 K tonnes @ 1.70 gpt Au, 29.2 gpt Ag, recovering 88.8% Au, 56.5% Ag, to produce 2.9 K Oz Au, 32.5 K Oz Ag.
Excellon Resources Inc. provided August 2020 production results from its Platosa mine in Durango. During the month 7.6 K tonnes were mined, 8.5 K tonnes processed @ 451 gpt Ag, 4.95% Pb, 6.76% Zn, recovering 86.8% Ag, 78.8% Pb, 78.9% Zn, to produce 106.7 K Oz Ag, 729.1 K Lb Pb, 997.2 K Lb Zn.
Silver Bull Resources. management approved a 1-for-8 reverse stock split of the of the company’s issued and outstanding common stock (Sierra Mojada, Coahuila).
Southern Silver Exploration Corp. closed the recently announced non-brokered private placement for gross proceeds of $456 K (Cerro Las Minitas, Durango).
Oroco Resource Corp. closed a non-brokered private placement for gross proceeds of $7.26 M (Santo Tomás, Sinaloa).
Canuc Resources Corp. announced it is now trading its shares on the OTCQB Venture Market (San Javier, Sonora).
Comet Resources Ltd. executed a binding agreement with Raptor Capital International Ltd. “for the provision of a streaming facility to provide a minimum of US$6m and up to US$20m in funding for development of the Santa Teresa High Grade Gold Project in Baja California”.
Southern Silver Exploration Corp. informed on private placements recently closed. A brokered offering for gross proceeds of C$10 M followed by a non-brokered offering for gross proceeds of C$4 M and a non-brokered private placement for gross proceeds of $456 K (Cerro Las Minitas, Durango).
Consolidated Zinc Ltd. Intends to undertake “a fully underwritten non-renounceable pro rata entitlement offer on the basis of three (3) new fully paid ordinary shares (“New Shares”) for every eleven (11) Shares held on 24 September 2020”. The intention is to raise approximately A$2 M (Plomosas, Chihuahua).
First Majestic Silver Corp. closed its previously announced bought deal with Eric Sprott for gross proceeds of CDN$78 M (Santa Elena, Sonora; San Dimas, Durango).
Solaris Resources Inc. announced its common shares have been approved to trade on the OTCQB Venture Market, effective September 17, 2020 (La Verde, Michoacan).
Defiance Silver Corp. closed the previously announced brokered private placement for gross proceeds totaling C$10 M (Veta Grande, Zacatecas).
Argonaut Gold Inc. entered into an agreement with a syndicate of underwriters with a bought deal private placement financing for aggregate gross proceeds of C$10 M (La Colorada, Sonora).
GoGold Resources Inc. closed its previously announced bought deal offering for gross proceeds of C$30 M (Los Ricos South, Los Ricos North, Jalisco).
Silver Dollar Resources Inc. completed its previously announced non-brokered private placement to raise $10.5 M in gross proceeds (La Joya, Durango).
Silver Viper Minerals Corp. announced that it has elected to accelerate the expiry date of the common share purchase warrants issued on September 24, 2019, to the new date of October 8, 2020 (La Virginia, Sonora).
ON RESOURCES AND DEVELOPMENT
Discovery Metals Corp. released results from four diamond drill holes targeting bulk-tonnage mineralization in the South Corridor at its Cordero project in Chihuahua. Highlighted intercepts comprise 401.7 m @ 49 gpt Ag, 0.07 gpt Au, 1.0% Pb, 1.1% Zn ( including 30.3 m @ 57 gpt Ag, 0.10 gpt Au, 0.8% Pb, 2.2% Zn; 112.3 m @ 96 gpt Ag, 0.08 gpt Au, 2.0% Pb, 1.8% Zn; 44.2 m @ 84 gpt Ag, 0.10 gpt Au, 1.8% Pb, 2.0% Zn); 5.1 m @ 231 gpt Ag, 0.21 gpt Au, 2.0% Pb, 2.6% Zn; 15.7 m @ 111 gpt Ag, 0.06 gpt Au, 1.7% Pb, 0.2% Zn.
Almaden Minerals Ltd. announced its intention to resume exploration in the area of the Ixtaca project in Puebla. “This program is starting with a desktop review of exploration data previously gathered, which is expected to lead to further field work in the near-term which may include mapping, surface sampling, geochemical stream silt and soil sampling, and geophysics. These data will be used to design a future drill program”.
GR Silver Mining Ltd. Released results from its surface core drilling program at Plomosas, Sinaloa. The drilling completed to date has delineated a 700 m mineralized zone with multiple veins including a low angle Pb-Zn-Ag rich hydrothermal breccia and high angle low sulfidation vein and stockwork systems. Highlighted true width intercepts comprise 6.0 m @ 85 gpt Ag, 0.4 gpt Ag, 1.1% Pb, 0.6% Zn (including 2.5 m @ 172 gpt Ag, 0.9 gpt Au, 2.7% Pb, 1.4% Zn); 22.3 m @ 48 gpt Ag, 0.1 gpt Au, 0.3% Pb, 0.6% Zn.
Magna Gold Corp. released the results of its recently completed pre-feasibility report on its San Francisco mine in Sonora. The report presents a base case at $1,450 per Oz Au with an NPV (Net present Value) of $80 M at 5% discount rate, producing 69 K Oz Au per year from 2021 to 2027 at an average all-in sustaining cost cash cost of $1,204 per Au Oz and no major capital required for resuming mining. Mineral reserves stand at 47.6 M tonnes @ 0.495 gpt Au, containing 758 K Oz Au and mineral resources (including mineral reserves) comprise 99.7 M tonnes @ 0.446 gpt Au, containing 1.43 M Oz Au. The inferred resources category includes 11.4 M tonnes @ 0.467 gpt Au, containing 171 K Oz Au.
Excellon Resources Inc. “has recommenced underground and surface drilling at the Platosa Mine and broader Platosa Property, respectively. Underground exploration is focused on expanding and further defining known mineralization. Surface exploration is focused on near mine targets around the Platosa deposit and the Jaboncillo and PDN targets north of the mine. Jaboncillo, 11 kilometres northwest of the Platosa Mine, is a Platosa-style target with a 4 x 4 kilometre alteration footprint, multiple times the size of the Platosa footprint, where the Company intersected near-surface gossans in 2019 drilling. PDN, two kilometres north of the Platosa Mine, is a skarn-style geophysical target that may be associated with the skarn discovery made in 2012 at Rincón del Caído”.
SSR Mining Inc. informed it is planning to spend $5 M in 2020 at Pitarrilla, Durango. The investment is part of a “program to extend an existing decline to provide drill access to the underground Mineral Resources. An improved geological model from work completed in 2019 indicates strong potential to better define known, high-grade mineralized veining associated with steeply dipping rhyolite dyke contacts. Extending the underground ramp provides access for tighter spaced drilling at better orientations to test the rhyolite dykes and veins for continuity. If infill drilling confirms the continuity of high-grade mineralized structures, there would be potential to enhance the grades of existing Mineral Resources“.
ON DEALS AND CORPORATE ISSUES
Sonoro Metals Corp. changes name to Sonoro Gold Corp. on September 9, 2020 (Cerro Caliche, Sonora).
Barksdale Resources Corp. informed that “Following a detailed due diligence campaign, the Company identified certain title issues with respect to three of the twelve mining concessions comprising approximately 307.46 hectares of the total lands covered under the option. Tusk Exploration Ltd (“Tusk”) is in the process of rectifying these title issues and expects the process to be completed in 2021. Until the title issues have been rectified, Barksdale and Tusk have agreed to defer 35% of the Year 1 and Year 2 option cash and share payments” (San Javier, Sonora).
Southern Silver Exploration Corp. closed the transaction with Electrum Global Holdings L.P. to acquire Electrum’s 60% indirect working interest in the Cerro Las Minitas project in Durango. Southern Silver must pay Electrum US$15 M in a combination of cash and common shares, of which US$5 M and 2.34 M shares and a credit of C$1.35 M deposit have been paid. Remaining are US$2 M and shares equal to US$2 M to be paid on March of 2021 and US$2 M and shares equal to US$2 M to be paid on September of 2021.
Odyssey Marine Exploration Inc. filed “the First Memorial in the case brought against Mexico under the North American Free Trade Agreement (NAFTA) on its behalf and on behalf of subsidiary Exploraciones Oceánicas (ExO), alleging that Mexico wrongfully denied environmental approval of the ExO Phosphate project in breach of NAFTA ….. Odyssey seeks damages of more than $2.3 billion including interest from April 2016 to the date of the First Memorial’s submission”.
Excellon Resources Inc. informed an appeal on the acquisition of 295 hectares north of the Platosa mine (in Durango) was denied by an appeals court in Mexico. “The Company does not consider the land material to its mining operation or exploration activities. The decision does not impact Excellon’s mineral rights and the Company does not expect it to have any impact on its operations”.
ON SOCIAL RESPONSIBILITY
Fortuna Silver Mines (San José mine in Oaxaca) has added a new sustainability section on its website, where the company´s sustainability approach is expressed, as well as its environmental, social, and governance (ESG) management and performance.
Great Panther Mining Ltd. announced the publication of its first sustainability report highlighting the progress, initiatives and commitments in the areas of health, safety, environmental, social, and governance management.
Fresnillo PLC, Minera San Xavier and Frisco informed on health and community programs on the areas of their respective projects.
Content like what you have just read can be seen at https://gambusinoprospector.com/ and at LinkedIn’s Mexico Mineral Exploration Group. On the image below: Opaline silica layer in the vadose zone of a low sulfidation system in Queretaro. Picture by Jorge Cirett.
During the 36th week of the year (August 31st to September 6th, 2020), at least 22 press releases were announced by companies working in Mexico. The dominant news on the country relating to the mining industry during the week, was the cancellation of the Sub Secretary of Mining (created during the last presidential term), headed by Francisco Quiroga, who had gained the trust of the enterprises and organizations of the industry by his relentless and hands-on daily effort to help better the mining industry in Mexico. He will be missed, unlike his predecessor. ON MEXICO ISSUES, the Sub Secretary of Mining was cancelled, its role absorbed within the Economy Secretary; loud complaints from the mining industry organizations followed, to fall on deaf ears. Pending investments in mining for the near future of US$1991 M. The Sonora Mining Fund Committee approved the investment of US$3.5 M on an aqueduct. FIFOMI has US$164 M in current credits to the mining industry. The Mining Fund is gone, for the purposes it was created for. (This is a measure taken by the actual federal government against the opinion of all mining enterprises and organizations. In my personal point of view, it opens the way to the use of the funds in a very centralized manner, same that can be exploited for political gains by those in power. There was just no need for this change). The very Mexican “illegal mine blockade roulette” now struck Equinox’s Los Filos mine in Guerrero. ON EXPLORATION, in Baja, Comet Resources updated on its Santa Teresa property. In Sonora, Redstar Gold updated on its Cumaro project. In Sinaloa, Viszla Resources released drilling results at Panuco. In Veracruz, Azucar Minerals released drilling results from El Cobre. ON MINING, Santacruz Silver reported second quarter 2020 results. Equinox Gold’s Los Filos mine in Guerrero is affected by an illegal blockade. ON FINANCING, seven companies made announcements regarding the opening or closing of financing rounds: Southern Silver Exploration ($456 K), Barksdale Resources ($6.3 M), GoGold Resources (C$30 M), Silver Dollar Resources ($10.5 M), Inomin Mines ($400 K), Americas Gold and Silver (C$39.4 M), Alien Metals (£1.25 M). Gold79 Mines, Golden Tag Resources and Redstar Gold granted stock options to officers, directors and consultants. ON RESOURCES AND DEVELOPMENT, Silver Bull Resources updated on the legal battle and an illegal blockade at its Sierra Mojada project in Coahuila. ON DEALS AND CORPORATE ISSUES, Odyssey Marine Exploration received funds for the legal battle to obtain the government permit to mine its Exploraciones Oceánicas phosphate project offshore Baja California Sur. Tarachi Gold acquired the Juliana group of properties, increasing the size of its Tarachi property to 3,708 hectares. Inomin Mines executed the agreement on the acquisition of the La Gitana and Peña Blanca properties in Oaxaca. ON SOCIAL RESPONSIBILITY. Peñasquito, First Majestic, Minera San Javier, Alamos Gold and SilverCrest informed on donations, community involvement and safety measures on the areas near their operations.
ON MEXICO ISSUES
Francisco Quiroga, in his last day as Sub-Secretary of Mining, called for the AIMMGM (Asociación de Ingenieros Mineros, Metalurgistas y Geólogos de México) to play a leading role in the transformation of the industry and its relationship with the public sector.
The AIMMGM installed the newly elected board for the 2020-2022 period.
The Secretaría de Economía announced the cancellation of the Mining Sub-Secretary, onward from September 1st, 2020.
The cancellation of the Mining Sub-Secretary by the federal government brought loud complaints from companies and organisms within the industry (not that these complaints are to be attended to). The Cámara Minera de México (CAMIMEX), the Asociación de Ingenieros Mineros, Metalurgistas y Geólogos de México (AIMMGM), the Mining Task Force of the Cámara de Comercio del Canadá en México, the Sonora, Chihuahua, Guerrero, Sinaloa and Zacatecas Mining clusters, the Colegio de Ingenieros de Minas, Metalurgistas y Geólogos de México (CIMMGM) and the organization Mujeres en la Minería (WIM Mexico) extended its congratulations to Francisco Quiroga, departing Mining Sub-Secretary and expressed the profound disagreement for the disappearance of the Sub Secretary of Mining.
Camimex (Cámara Minera de México) informed Mexico has a list of projects that add up to $1,991 M dollars in programmed investment. Amongst these are the Campo Morado mine in Guerrero, La Yaqui Grande in Sonora, as well as the Orysivo project in Chihuahua, the Centauro Profundo project in Sonora and the Media Luna project in Guerrero. Mexico had a production peak of 123,364 kg of gold in 2015, same that has declined to 73,451 kg in 2019.
The Mining Fund Sonora Committee approved the investment of MX$75 M pesos (US$3.5 M) for the construction of the Macoyahui-Alamos aqueduct. The project includes 24.5 Km of PVC tubing and five pumping stations.
INEGI informed the mining activity is resuming after the COVID lockdown. Sulphur, iron,, lead, gold, copper, silver, fluorite are among the commodities that have seen their production significantly increased. In January 2020 the industry generated 381,456 direct jobs and more than 2 M indirect jobs, according to the IMSS.
Request for the Mining Sub Secretary to stay in Chihuahua by Omar Bazán, deputy, and the Chihuahua Mining Cluster.
The Fideicomiso de Fomento Minero (FIFOMI) has $3,530 M pesos (US$164 M) on current credits to the mining sector.
The Mining Fund is gone, for the purposes it was created for. Graciela Márquez, Economy Secretary confirmed the resources no longer are going to be distributed among mining municipalities, but through different agreements with government organisms and federal programs to help mining communities.
Graciela Márquez, Economy Secretary, stated the disappearance of the Mining Sub-Secretary is not to affect the mining industry as all relevant structures stay in place (We beg to disagree).
Radius Gold Inc. informed on exploration at its Amalia and Plata Verde projects in Chihuahua. At Amalia, “phase 4 drilling funded by JV partner Pan American Silver remains on stand-by due to COVID-19. Semarnat, the permitting agency in Chihuahua, has returned to work on a limited scale and Pan American has recently provided updated information requested by Semarnat”. At Plata Verde, there is advance in the signing of agreements to expand the property package. “The next phase of field work will consist of geophysical programs to identify feeder systems and expansions of the known mineralization under the thin (>100m) cover volcanics”.
Redstar Gold Corp. announced its Cumaro project in Sonora is adjacent to SilverCrest’s Picacho property. “Previous drilling on SilverCrest Metals’ Picacho vein, two kilometres north of the Cumaro property, returned intersections including 13.9 metres at 16.22 grams per tonne (g/t) gold and 33.9 g/t silver in hole PDD07-013, and 4.1 metres at 3.86 g/t gold and 35.0 g/t silver…” in other hole on the Dos Amigos vein. The company believes there is a down-thrown block on the eastern side of the property, where the extensions of the veins exposed on the western side could be present on a much shallower level.
Comet Resources Ltd. Informed in a corporate presentation on its Santa Teresa property in Baja California. Santa Teresa is a high-grade mesothermal lode gold deposit (ie.- orogenic gold) with an existing NI 43-101 inferred resource of 64 K Oz Au capped at 20 gpt Au, with a cutoff grade of 4 gpt Au and average grade of 8 gpt Au. Historical drilling has intersected quartz veins grading up to 958 gpt Au over 1 m, and multiple other drill results above 30 gpt Au. The deposit is open along strike and at depth.
Vizsla Resources Corp. announced a fourth new discovery at its Panuco project in Sinaloa. The first four drill holes at the Tajitos vein have been completed on the Cinco Señores vein corridor. Highlighted intercepts from the three first drill holes comprise 4.5 m @ 1,200 gpt Ag, 7.29 gpt Au (including 1.15 m @ 2,210 gpt Ag, 16.13 gpt Au); 1.15 m @ 812 gpt Ag, 4.59 gpt Au. ”The Tajitos vein zone is composed of a quartz breccia vein with an early white locally banded quartz supporting andesite lithic clasts, followed by a later white to greyish quartz supporting brecciated clasts of earlier white quartz veins. This zone was then cut by a later white to clear quartz vein with local dark bands or patches of fine-grained sulphides that is cutting a zone of quartz psuedomorphs after bladed calcite and pink rhodochrosite. The better grades are in the earlier breccias associated with dark bands or dark patches of very fine-grained disseminated sulphides. This vein zone is hosted in a package of andesite flows and tuffs”.
Azucar Minerals Ltd. released drilling results from its El Cobre project in Veracruz. The holes in the Primo target returned 23.75 m @ 0.22 gpt Au, 0.08% Cu; 8.50 m @ 0.71 gpt Au, 0.24% Cu; 123.50 m @ 0.14 gpt Au, 0.14% Cu. Azucar is currently preparing its facilities and implementing the health protocols required to enable a safe return to work.
Santacruz Silver Mining Ltd. Reported operating and financial results for the second quarter 2020. At Veta Grande in Zacatecas, 37.1 K tonnes were milled to produce 204.6 K Oz AgEq at cash cost $17.68 per Oz AgEq and an AISC of $19.70 per Oz AgEq. At Rosario in San Luis Potosi, 20.8 K tonnes were milled to produce 141.4 K Oz AgEq at cash cost $14.23 per Oz AgEq and an AISC of $15.59 per Oz AgEq.
Equinox Gold Corp. reports that “mining activities at its Los Filos mine in Mexico have been suspended since September 3, 2020 as the result of an illegal road blockade by members of the nearby Carrizalillo community. The individuals allege non-compliance with the community social collaboration agreement signed in 2019. The mine remains staffed with a reduced workforce to maintain appropriate safety, security and environmental systems. Equinox Gold is in active discussions with the Carrizalillo community leaders to resolve the issues”.
Gold79 Mines Ltd. Approved the granting of 6 M stock options to officers, directors and consultants of the company (Taviche, Oaxaca).
Southern Silver Exploration Corp. plans to conduct a non-brokered private placement to raise $456 K (Cerro Las Minitas, Durango).
Golden Tag Resources Ltd. Granted 9.9 M incentive stock options to management and directors (San Diego, Durango).
Barksdale Resources Corp. increased the size of its non-brokered private placement financing for gross proceeds of up to $6.3 M (San Javier, Sonora).
GoGold Resources Inc. entered into an agreement on a bought deal basis with a syndicate of underwriters for the acquisition of shares for gross proceeds of C$30 M (Los Ricos, Jalisco).
Silver Dollar Resources Inc. has arranged a non-brokered private placement to raise up to $10.5 M (La Joya, Durango).
Redstar Gold Corp. announced the granting of 20.73 M stock options to directors, officers and consultants of the company (Cumaro, Oso Negro and La Lola, Sonora).
Inomin Mines Inc. announced a non-brokered private placement to raise up to $400 K in gross profits (La Gitana, Oaxaca).
Americas Gold and Silver Corp. closed its previously announced and up-sized bought deal financing for aggregate gross proceeds of C$39.4 M (Cosalá, Sinaloa).
Alien Metals Ltd. announced that it has conditionally raised £1.25 M (Los Campos and Los Celsos, Zacatecas).
ON RESOURCES AND DEVELOPMENT
Silver Bull Resources Inc. updated on its Sierra Mojada project in Coahuila. Sociedad Cooperativa de Exploración Minera Mineros Norteños, S.C.L. (Mineros Norteños), the group which is illegally blocking the Sierra Mojada project, has filed an appeal in the recently reopened Mexican courts to try and overturn a favorable ruling for Silver Bull on their lawsuit against the Company filed in 2014. The company sees the whole lawsuit as frivolous (looking for payment of an NSR on production that has not taken place), and explains Mineros Norteños has lost already three rulings, and Silver Bull expects a final ruling on the case, which cannot be appealed by Mineros Norteños, to be handed down from the courts within the next 6 months. Mineros Norteños has illegally blocked access to the project since September 2019.
ON DEALS AND CORPORATE ISSUES
Odyssey Marine Exploration Inc. had a financing transaction that provides the company with $11.3 M, a portion of which will be used to fund operating expenses of the “Exploraciones Oceánicas” phosphate project offshore Baja California Sur. “The investor group was anchored by Odyssey’s existing NAFTA funding partner, Poplar Grove LLC. Poplar Grove is managed by Drumcliffe LLC, a private investment management firm that oversees high-value litigation funding portfolios of over $14 billion in claims”.
Telson Mining Corp. announced the resignation from its board of directors by Remigio Martínez Muller.
Tarachi Gold Corp. entered into an arm’s length option agreement with Exploradora Cobre de Bacanoras S. de R.L. de C.V. to acquire 100% interest in the group of mining concessions known as the Juliana, Juliana No.1, Juliana No.2 and Las Morita mining concessions covering 1,140 hectares in Sonora. “Tarachi’s projects now consist of the San Javier, Pretoria, Chivitas, Jabali, Juliana, Texana and Tarachi concessions for a total of 3,708 ha in the Mulatos District. The deal involves the payment of $40 K on the execution date, $30 K on six months, $30 K on 12 months, $30 K on 18 months, $60 K on 24 months, $60 K on 30 months, $150 K on 36 months, $150 K on 42 months, $150 K on 48 months, $700 K on 54 months and $700 K on 60 months, and the issue of 4 M common shares, 400 K of those on the execution date, 1 M shares on 12 months, 1 M shares on 24 months and 1.5 M shares on 26 months. The transfer of the concessions is subject to a 3% NSR from production, with the company having the right to buy at any time 1/3 of the NSR for $1 M.
Inomin Mines Inc. announced the execution of the agreement to acquire the La Gitana and Peña Blanca projects in Oaxaca. Inomin is acquiring 100% interest on both properties for 1 M common shares of Inomin, $25 K cash and the grant of 1.5 % NSR on the Peña Blanca property, of which 0.5% can be bought at any time for $1 M.
ON SOCIAL RESPONSIBILITY
Peñasquito continues to apply bio-security protocols. Up to date 27,359 fast test have been applied in the facilities and neighboring communities, resulting in six confirmed cases.
First Majestic Silver Corp. invested during 2019 US$3.8 M in local community, health youth programs, infrastructure and access to clean water. Over 25,600 medical consultations were provided in local communities. Planted 105,730 native plant species through reforestation initiatives .
Minera San Javier (NewGold) donated personal medical equipment to hospitals in San Luis Potosí, and personal medical equipment and sanitization supplies to the Cerro San Pedro municipality health clinics. The company continues to deliver food pantries to persons in need in Planta del Carmen, La Zapatilla, Monte Caldera, Cuesta de Campa, Calderón, Portezuelo and Cerro San Pedro.
Alamos Gold donated medical equipment and a mobile unit to the Sahuaripa DIF (Desarrollo Integral de la Familia) in Sonora.
SilverCrest’s Las Chispas project has accumulated 600 days without accidents in Sonora.
During the 24th week of the year (June 8th to June 14th, 2020), at least 35 press releases were announced by companies working in Mexico. Notably, 8 of those were exploration updates and 9 related to financing. ON MEXICO ISSUES, Senator Miguel Lucero and a coalition of mining unions proposed the creation of the Mining Secretariat, against the presidential bid to close the Sub-Secretariat of Mining. The Mexican president asked publicly the Canadian ambassador for help to get Canadian mining companies to pay due taxes. First Majestic asked the Canadian ambassador to intervene on the tax dispute. Copper prices have reached $2.60 per pound. Two rival unions were involved in a brawl in Fresnillo, Zacatecas. Francisco Quiroga Sub-Secretary of Mining informed that mines in Mexico are free of confirmed Coronavirus cases. All mines have procedures in place to detect and control outbreaks on transport and work sites. ON EXPLORATION, in Sonora, Silver Viper resumes drilling at La Virginia; Aztec Minerals updated on exploration at its Cervantes project; Colibri presented assay results from grab samples at the Evelyn project. In Chihuahua, Kootenay Silver recommenced drilling at Columba. In Sinaloa, Kootenay Silver restarted drilling at the Copalito property. In Durango, Mithril Resources prepares to drill the Copalquin project. In Jalisco, GoGold Resources began drilling Los Ricos North project. ON MINING, Mexus Gold continues mining at its Santa Elena property. Peñoles is to invest one billion dollars in 2020 in its mining operations. Fresnillo PLC reported on payments to governments of Mexico and Peru. ON FINANCING, Minaurum closed a private placement netting $4.21 M. Discovery closed the second and final tranche of its private placement, accruing C$25 M. Silver Viper commenced trading on the OTCQB in USA. Sonoro Metals realized a third MOU on its Cerro Caliche project, Sonora. Starcore paid its debts and is now debt free. Consolidated Zinc is to raise $0.57 M to purchase equipment. Vangold accelerated the warrant program relating to its 2019 placement. Prime Mining completed the offering for C$10 M. Mag Silver now holds 19.9% of Reyna Silver. ON RESOURCES AND DEVELOPMENT, Mexican Gold started the fieldwork needed to complete the environmental baseline report at its Las Minas property in Veracruz. Minera Alamos reported more drill results from its Santana project in Sonora. Capstone updated on the mineral resources of its Cozamin mine in Zacatecas, showing a nice increase. ON DEALS AND CORPORATE ISSUES, Magellan Gold is leaving Mexico. Mithril Resources appointed new CEO and Chief Geologist. Sonoro Metals postponed its general meeting. Evrim Resources and Renaissance Gold are merging into a new entity named Orogen Royalties. Silver Spruce optioned the El Mezquite property in Sonora. GR Silver Mining filed on SEDAR the amended technical report on its San Marcial project. ON SOCIAL RESPONSIBILITY. Grupo Mexico, Fresnillo PLC, Argonaut Gold, Bylsa Drilling, Asociación de Real de Minas de San Javier, SilverCrest, Alamos Gold, Agnico Eagle, EMS, Molymex, Metallorum-Autlán, FLSmidth, First Majestic, Gruminex, Peñoles, Barimont, MAC Distribuciones, Dynapro Pumps, Cobre del Mayo, Minera Capela, Peña Colorada and Newmont Corp. informed on a large array of investments and measures that benefit the mining communities.
ON MEXICO ISSUES
Senator Miguel A. Lucero (president of the mining and regional development commission in the senate) proposed the creation of the Mining Secretariat. This was his viewpoint in the rumors that the president Lopez Obrador is about to disappear several sub secretariats on grounds of saving resources. He stressed that the mining industry operates in over 200 municipalities that deserves close attention.
The Union Nacional de Sindicatos Minero–Metalurgicos de Mexico asked the president Lopez Obrador to evaluate the creation of a Mining Secretariat, to foster national and foreign investment and generate jobs.
The President of Mexico, Andres Manuel Lopez Obrador (AMLO) asked publicly the Canadian ambassador for help to get Canadian mining companies to pay due taxes. He stated that the debts are clear and that there is no point on the mining companies to seek legal complaints.
First Majestic Silver Corp. has asked Canada’s ambassador to Mexico to intervene in an escalating tax dispute with President Andres Manuel Lopez Obrador’s government. “We’ve been trying to get somebody to the table to finally put this behind us,” First Majestic CEO Keith Neumeyer told Reuters. Neumeyer said the company had proposed three settlement offers since 2018 before launching the trade challenge last month. “Each of the offers has been rebuffed”.
Copper prices grew 25% from its March minimums, reaching US$2.60 per Lb thanks to the Chinese recovery.
Rival Unions in Fresnillo, Zacatecas, participated in a brawl that resulted in several persons conducted to a nearby hospital for medical care. This arises for a rivalry between the Sindicato Nacional Minero Metalúrgico (FRENTE) and the Sindicato Independiente for representation of workers at the Fresnillo mine.
Francisco Quiroga, Sub-Secretary of Mining informed that mines in Mexico are free of confirmed Coronavirus cases. All mines have procedures in place to detect and control outbreaks on transport and work sites.
VanGold Mining Corp. completed a bulk sample and metallurgical test at its Pinguico project in Guanajuato. The 1,039 tonne bulk sample was processed at Endeavour Silver Corp’s Bolañitos mill in Guanajuato, with an average grade of 1.23 gpt AuEq, and a recovery rate of 75.2% Au, 60.4% Ag.
Silver Viper Minerals Corp. resumes exploration at its La Virginia project in Sonora. “The recently renewed work program continues Phase II drilling at the El Rubi discovery area, where systematic testing of the structure is being conducted on 50m sectional step outs. A second drill will test exploration targets in and around the El Rubi location”.
Kootenay Silver Inc. recommenced drilling at its Columba project in Chihuahua. The initial holes of the remaining 5,200 meters of the phase II 7,000 m program “will focus on expanding the F-vein by following-up on positive results from the first 10 holes of the Program…… Beyond augmenting previously drilled areas the Program will investigate untouched veins mapped out by Kootenay’s geological team”.
Aztec Minerals Corp. updated on the exploration of the Cervantes project in Sonora, in advance of the signing of the 65/35 joint venture agreement with Kootenay Silver Inc. Highlights from the 2017 drilling program at the California target include the following intercepts: 160 m @ 0.77 gpt Au (including 80 m @ 1.04 gpt Au, 0.11% Cu); 139 m @ 0.71 gpt Au (including 20 m @ 2.10 gpt Au, 0.16% Cu); 118 m @ 0.63 gpt Au (including 43 m @ 1.18 gpt Au, 0.16% Cu); 122 m @ 0.60 gpt Au (including 62 m @ 0.88 gpt Au, 0.06% Cu); 170 m @ 0.42 gpt Au (including 32 m @ 0.87 gpt Au, 0.06% Cu). Other targets include Purisima East, Estrella, Purisima West and Jasper. Preliminary metallurgical tests have shown 85.1% to 87.7% Au recovery in oxide, 77.9% Au recovery in mixed oxide/sulfide and 51.2% in sulfide.
Kootenay Silver Inc. recommenced drilling at its Copalito property in Sinaloa. The 3,000 m drill program was halted due to the Coronavirus lockdown when only one 105.2 m hole had been completed. Over 10 kilometres of untested vein strike has been mapped, with strike lengths up to 2 km and widths from 0.5 m to 15 m. Previously reported grab and channel samples have returned up to 3,770 gpt Ag, 8.2 gpt Au, 17.4% Zn, 9.9% Pb and 1.5% Cu.
GoGold Resources Inc. began drilling at the La Trini target, part of the Los Ricos North project in Jalisco. Historical intersections by Tumi Resources include: 24.4 m @ 6.4 gpt Au, 1,629 gpt Ag; 18.3 m @ 3.1 gpt Au, 150 gpt Ag; 6.1 m @ 2.8 gpt Au, 174 gpt Ag; 19.7 m @ 4.9 gpt Au, 193 gpt Ag; 14.1 m @ 4.9 gpt Au, 261 gpt Ag; 10.5 m @ 5.7 gpt Au, 188 gpt Ag.
Mithril Resources Ltd. prepares to drill its Copalquin project in Durango. “Drilling and helicopter support contracts have been signed with mobilisation of equipment commencing in June 2020…… Previous drilling has identified three areas with underground mineable grades over potentially mineable widths. These areas are El Refugio, La Soledad and El Cometa (which also include open pit resource potential). Mithril’s drilling campaign will systematically test each of these high-priority areas and will also drill test Los Reyes, Los Pinos, and later La Constancia and the important San Manuel multi-level mine workings”.
Colibri Resource Corp. received assays from samples collected on the western part of the Evelyn property in Sonora. The western part of the project is mostly covered by a thin veneer of alluvium and colluvium. More than 50 grab samples have been taken from small areas of sub-crop and outcrop exposed through the cover. “Three samples returned values greater than 2.0 g/t Au, 6 samples returned values greater that 0.25 g/t Au, and a total of 15 samples returned anomalous Au” up to 27.5 gpt Au.
Mexus Gold US. continues mining and expects to put 1,800 tons of material in the leach pads by the end of this week, on its Santa Elena mine in Sonora (not to mistake for First Majestic Santa Elena mine, also in Sonora).
Industrias Mineras Peñoles. is to invest one billion dollars in Mexico this year, regardless of the economic downturn by the Coronavirus pandemic.
Fresnillo PLC. reported on payments done to Mexico and Peru governments derived from its operations in both countries. The company paid in Mexico a total of US$233.7 M in Mexico, of which US$28.6 M were from licences and mining concessions fees.
Minaurum Gold Inc. announced the closing of the previously announced non-brokered private placement, for gross proceeds of $4.21 M, with the prominent participation of Sprott Global Resources Investments Ltd. (Alamos Silver, Sonora).
Discovery Metals Corp. closed the second and final tranche of its non-brokered private placement for aggregate proceeds of C$25 M. “The Company also announces it has received approval by the Mexican government to resume operations at its Cordero project with strict COVID-19 health and safety protocols”. The company has over $40 M in cash on its balance sheet (Cordero, Chihuahua).
Silver Viper Minerals Corp. commenced trading on the OTCQB Venture Market in the United States (La Virginia, Sonora).
Sonoro Metals Corp. executed a third memorandum of understanding (MoU) for the finance and development of its proposed Cerro Caliche Heap Leach Pilot Operation. As of February 28, 2020, Sonoro had received two executed MoUs regarding project debt financing and EPC services for its proposed Cerro Caliche heap leach (Cerro Caliche, Sonora).
Starcore International Mines Ltd. reported that the company paid out CAD$3 M of secured bonds plus accrued interest of CAD$235.4 K. In addition to this, the company also repaid a US$1 M loan. The payments were made from the Company’s cash flow generated from mine operations and prior asset sales (San Martin mine, Queretaro).
Consolidated Zinc Ltd. announced firm commitments to raise a further $0.57 M via a single tranche placement. “Funds raised from the Placement will be applied towards the purchase of equipment to increase efficiencies at Plomosas, working capital and offer costs” (Plomosas, Chihuahua).
VanGold Mining Corp. announced that to date the warrant acceleration program in connection with the company’s 2019 placement has rendered $1.16 M in gross proceeds of which $650 K were accrued by the exercise of warrants by Vangold’s directors and officers. “…funding for a portion of the exercise of warrants by directors and officers was facilitated through the sale of a portion their existing share holdings” (El Pinguico, Zacatecas).
Prime Mining Corp. announced the completion of the offering for gross proceeds of C$10 M (Los Reyes, Sinaloa).
Mag Silver Corp. has acquired 14.55 M shares of Reyna Silver Corp., owning to date 19.9% of its outstanding shares.
ON RESOURCES AND DEVELOPMENT
Mexican Gold Mining Corp. announced “that fieldwork towards completing an environmental baseline study has commenced at the Las Minas project. Drilling at Las Minas is scheduled to commence in early July”.
Minera Alamos Inc. reported more drilling results from its Phase II program at its Santana project in Sonora. The results further expand mineralization to the SW, and confirm the depth potential previously identified. Highlighted core length intervals comprise: 202.7 m @ 0.51 gpt Au; 105.6 m @ 0.31 gpt Au, 50.9 m @ 0.34 gpt Au; 90.0 m @ 0.40 gpt Au; 43.3 m @ 0.61 gpt Au; 42.5 m @ 0.36 gpt Au; 62.5 m @ 0.31 gpt Au, 188.2 m @ 0.28 gpt Au.
Capstone Mining Corp. updated the mineral resource estimate for the Cozamin mine in Zacatecas.
ON DEALS AND CORPORATE ISSUES
Magellan Gold Corp. is redirecting its focus toward opportunities within the United States. “the company has divested all of its Mexico operations through the sale of its subsidiary Magellan Acquisition Corp.”. Among the operations divested is the SDA mill and the El Dorado property, both in Nayarit.
Mithril Resources Ltd. appointed John Skeet as its new CEO and Hall Stewart as its Chief Geologist (Copalquin, Durango)
Sonoro Metals Corp. postponed its annual general meeting to September 4, 2020 (Cerro Caliche, Sonora).
Evrim Resources Corp. and Renaissance Gold Inc. entered into an agreement to combine in a merger of equals “in which Evrim will acquire all of the outstanding common shares of Renaissance through a share exchange transaction to create a new company, to be named Orogen Royalties Inc. Orogen will focus on project generation as has been the history of both Evrim and Renaissance but with a renewed focus on organic royalty creation and royalty acquisition” (royalty in Ermitaño, Sonora).
Silver Spruce Resources Inc. signed a binding option agreement with Colibri Resources Corp. to acquire 50% interest in its wholly owned Mexican subsidiary Yaque Minerals S.A. de C.V., which holds the El Mezquite project in Sonora. El Mezquite is 12 Km NE of the Santana property, currently under mine development by Minera Alamos. To obtain 50% interest Silver Spruce has to pay US$82.5 K by September 1, 2020, US$127.5 K by September 1, 2021, and CDN$500 K for a debenture due in October 2023. The company will have the option to pay US$107.5 K by December 31, 2020 to complete the cash acquisition for a discounted total of US$190 K. Minimum work expenditures total US$600 K on the four year term of the agreement. A 1% royalty to the original vendors of the property can be purchased for US500 K at any time.
GR Silver Mining Ltd. filed on SEDAR its amended technical report on resources estimation of its San Marcial project in Sinaloa. There are 12 amendments in different parts of the report, with no material differences on the resource estimation.
ON SOCIAL RESPONSIBILITY
In Sonora more than 125 thousand persons in 30 municipalities and 47 rural communities have received support by 13 mining companies and six service providers: Grupo México, Fresnillo Plc, Argonaut Gold, Bylsa Drilling, Asociación de Real de Minas de San Javier, SilverCrest, Alamos Gold, Agnico Eagle, EMS, Molymex, Metallorum-Autlán, FLSmidth, First Majestic, Gruminex, Peñoles, Barimont, MAC Distribuciones, Dynapro Pumps and Cobre del Mayo).
The mining sector in Mexico strives nowadays for social co-responsibility between community, government and enterprises, where the communities define their needs and priorities, the government complies with its responsibilities and enterprises promote and provide resources, organize community committees and develop executive projects.
The world day of the environment was held in Teloloapan, Guerrero, with the presence of Efrén Romero, municipal president, Army members and Minera Capela executives.
In Cuencamé, Durango, a road work investment of 11 million pesos was inaugurated by Luly Martínez. Municipal president. The investment was made possible with resources from the Mining Fund.
Agnico Eagle received the Environmental Excellence Award from the Mining Association in Canada, for its work in Pinos Altos, Chihuahua, where was developed an ultra-high density grazing initiative.
Peña Colorada builds a medical facility in Manzanillo. With an investment of 4 M pesos, the facility will count with an area for patient care, and another area for the rest of the medical personnel, as this new building is by the side of the Hospital General de Manzanillo.
Newmont Corp. published its 2019 sustainability report. The report displays all the work planned and done by the company as it strives to better its environmental, social and governmental imprint in Mexico.
Bylsa Drilling efforts on social responsibility on the communities neighboring the Las Chispas and Alamos Silver projects in Sonora were commended by governor Claudia Pavlovich.
The Mining Fund provided the resources to build the Doctores Avenue in Fresnillo, Zacatecas. The 27.14 million pesos invested funded 670 m of paving and drainage construction.
Grupo Mexico restated its compromise on the state of Chihuahua with the donation of a termo-cycler to the State Health Laboratory. Previously the company had donated five mechanical ventilators to the University Central Hospital, same that shortly is to receive 25 non-invasive ventilators more.
During the 22nd week of the year (May 24th to May 31st, 2020), at least 36 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, Francisco Quiroga, subsecretary of mining had a very active week by reviewing personally the health protocols put in place by mining companies in several states, as well as being present on the installation of regional mining committees in a handful of states, before the full re-start of mining operations allowed by the government. BNamericas presented a list of 24 mining projects going ahead in Mexico from 2020 to 2026, with a capital investment of US$7,450 M. Mining companies scrambled on the restart of operations permitted by the government with the inclusion of the industry in the category of essential activities that can operate during the Coronavirus emergency. ON EXPLORATION, in Sonora, Ridgestone Mining resumed activities at its Rebeico project. In Chihuahua, Kootenay Silver released results from drilling at its Columba project; Mammoth Resources announced Centerra is returning for exploration work at its Tenoriba project. In Nayarit, Candente Gold is to rehabilitate underground workings to advance its El Dorado project. In Zacatecas, Defiance Silver delineated several targets at the San Acacio property. ON MINING, Sierra Metals, Impact Silver, Mexus Gold, Fortuna Silver, Gold Resource, Endeavour Silver and Aura Minerals announced the recommencement of activities, following the government easing of restrictions on mining. Impact Silver and Discovery Metals reported first quarter 2020 results. GR Silver Mining is postponing the filing of first quarter 2020 results, under the blanket relief granted by the regulatory authorities in Canada. ON FINANCING, in a pretty busy week, 16 companies made announcements related to their financing. Canasil Resources granted 1.75 M options. Orex Minerals intends to raise up $2 M. Silver Tiger Metals is now trading on the OTCQB quotation system in the US. Vangold Mining accelerated a warrant bonus program in connection with its 2019 private placement. Equinox Gold saw warrants exercised for $145 M. Southern Silver Exploration extended the expiry date of some warrants for two years. Ridgestone Mining is now listed in the Frankfurt Stock Exchange. Aztec Mining engaged a Swiss investor relations firm for European exposure. Vizsla Resources is pursuing a financing round for C$4 M. DynaResources closed a financing agreement for $3.9 M. Minaurum Gold closed its private placement grossing $5 M. Telson closed the second tranche of its private placement for $196.6 K. Golden Tag Announced a non-brokered private placement for up to $1.12 M. Solaris Resources raised C$20 M. Mammoth Resources announced a private placement for up to $131 K. Consolidated Zn intends to raise up to $1.73 M. ON RESOURCES AND DEVELOPMENT, Mexican Gold Mining is working on the PEA for its Las Minas project in Veracruz. Golden Minerals filed the PEA on Rodeo, Durango. Bacanora Lithium updated on activities to further advance its Sonora Lithium project. Discovery Metals has completed 15,000 m of its 30,000 m phase 1 drill program at its Cordero project in Chihuahua. ON DEALS AND CORPORATE ISSUES, Mithril completed the acquisition of Sun Minerals, obtaining thus the Copalquin project in Durango. Candente Gold amended the memorandum of understanding to acquire the El Dorado property and the SDA mill in Nayarit. Sonora Metals published and filed a new version of the Cerro Caliche development report, as requested by the British Columbia Securities Commission. ON SOCIAL RESPONSIBILITY. Minera Peña Colorada, Grupo Mexico, Fresnillo PLC, Minera Real Bonanza and the mining industry in Sonora informed on donations and work realized to aid communities, mainly on subjects related to the Coronavirus emergency, like medical supplies and equipment, comprising also a large array of investments and measures that benefit the mining communities.
ON MEXICO ISSUES
Francisco Quiroga, subsecretary of Mining, personally verified the application of safety protocols to re-start operations in mines. Quiroga visited Agnico Eagle’s Pinos Altos, Grupo Mexico’s Santa Barbara and Frisco’s Concheño mines in Chihuahua. He will also review protocols in Durango, Zacatecas and Coahuila.
The fourth virtual personnel hiring session was held by La Cantera Desarrollos Mineros in Zacatecas.
The silver price has seen its strongest monthly growth in almost seven years. Prices have reached up to $17.69 per ounce.
The Regional Committee for the Development of Mining Zones was constituted in Durango.
Mining Companies are to re-start operations on June 1, 2020. Dozens of mining companies prepare to re-commence mining and processing activities, reviewing its health and work protocols.
The Regional Committee for the Development of Mining Zones was installed in Zacatecas. The governor Alejandro Tello, the Camimex president, Fernando Alanís and the Mining subsecretary Francisco Quiroga were in the event that also saw the presence of representatives of Fresnillo PLC, Industrias Peñoles, Minera Frsico, Capstone Gold, Excellon Resources, Newmont, Aura Minerals, Arian Silver, Grupo Mexico, Impulsora Minera Santacruz, First Majestic, Grupo Minera Candelaria, Minera Camino Rojo, and Minas de San Nicolás.
The subsecretary of Mining Francisco Quiroga reviewed the sanitary procedures of Minera El Roble.
Peñasquito restarted operations in Zacatecas, after the review of the health protocol by Francisco Quiroga, subsecretary of mining.
Bnamericas presented a list of mining projects going forward in 2020-2026 with a capital investment of US$7,450 M, notwithstanding the pandemic induced stoppages. A total of 24 projects would increase the annual production by 1.5 M Oz Au, 33 M Oz Ag and 247 K tonnes Cu to 2026.
Kootenay Silver Inc. released results from four more drill holes at its Columba project in Chihuahua. Highlighted core length intervals comprise: 1.06 m @ 259 gpt Ag; 7.0 m @ 124 gpt Ag (including 3.6 m @ 197 gpt Ag); 2.8 m @ 762 gpt Ag (including, 1.0 m @ 2,010 gpt Ag); 10.2 m @ 68 gpt Ag (including 0.65 m @ 368 gpt Ag); 4.4 m @ 209 gpt Ag (including 1.4 m @ 484 gpt Ag); 38 m @ 50 gpt Ag (including 0.45 m @ 486 gpt Ag); 6.0 m @ 317 gpt Ag (including 2.0 m @ 865 gpt Ag); 36 m @ 72 gpt Ag (including 1.1 m @ 769 gpt Ag and 4.36 m @ 317 gpt Ag). Drill results show continuity and high grades along nearly 600 meters of strike on the F Vein at depths from 15 to 200 meters.
Ridgestone Mining Inc. has resumed activities at its Rebeico project in Sonora. “Core samples from the first three drill holes at the New Year Zone, which encountered abundant sulphides, have been sent to ALS Chemex in Hermosillo for assaying”.
Mammoth Resources Corp. announced the return of Centerra Gold Inc. personnel to Mammoth’s Tenoriba project in Chihuahua.
Candente Gold Corp. is planning underground work on the El Dorado project in Las Minitas, Nayarit. Rehabilitation of underground workings is to aid in the construction of a 3-D model of unmined blocks and vein structure, to guide potential mining/extraction operations. Drill data from the 2010-2011 campaign would be also incorporated.
Defiance Silver Corp. announced the delineation of multiple targets at is San Acacio project in Zacatecas, which include a 1.3 Km by 300 m corridor where a hanging wall mineralizing event has been identified, deep targets along the Veta Grande strike to the SE, and the El Mirador part of the multi-km long La Veta Morada fault. Re-logging and sampling of historical drill holes is to continue, with a 5,000 m drilling program planned on existing targets. Defiance is preparing additional drill permit applications that will test some of the targets that lie outside of the current drill permit.
Sierra Metals Inc. informed the Mexican government issued a communication stating “that the effective date for Mining to be deemed an essential service was June 1, 2020. The Company is currently recalling employees from the Bolivar Mine (Chihuahua) to begin a COVID-19 screening process, including a quarantine period, allowing the Company to be ready to commence mining activities on June 1, 2020. The Cusi Mine (Chihuahua), as previously discussed in the May 13, 2020 press release, remains in care and maintenance”.
Aura Minerals Inc. announced that the Company filed its interim financial statements for the first quarter of 2020 (Aranzazu, Zacatecas).
Impact Silver Corp. announced its financial and operational results for the first quarter of 2020. Silver production was 179 K Oz Ag, with mill feeds from the Guadalupe, San Ramon, Cuchara and Veta Negra mines. At the end of the period the company cash and working capital stood at $3.9 M and $3.4 M respectively. Mining is to resume on June 1st, 2020, following government directions (Zacualpan, Estado de Mexico).
Mexus Gold US. Resumed full operational production after the Coronavirus emergency slowdown at its Santa Elena mine in Sonora (not to be mistaken with First Majestic’s Santa Elena mine, also in Sonora).
Fortuna Silver Mines Inc. resumed production activities at its San José mine in Oaxaca.
Gold Resource Corp. received written government approval to restart its Oaxaca Mining Unit in Oaxaca. “After reviewing Gold Resource Corporation’s safety protocol documentation, the Instituto Mexicano del Seguro Social (IMMS) approved in writing the restart of the Company’s OMU operations on May 25, 2020”.
Endeavour Silver Corp. has restarted operations at its three underground mines in Mexico. “The Company filed its mine operating and health plans with, and received approvals from, the Secretariat of Health in Mexico to recommence mining operations”. Guanaceví in Durango, Bolanitos in Durango and El Compa in Zacatecas are ramping up activities to achieve normal operations.
Discovery Metals Corp. announced its operating and financial results for the first quarter 2020. By the end of the period Discovery had cash and cash equivalents of $20 M (Cordero, Chihuahua).
Minera Capela (Industrias Peñoles) reported a rock-fall that resulted in two deaths and three more casualties in Tehuixtla, Teloloapan, Guerrero.
GR Silver Mining Ltd. Informed that due to international logistics and delays caused by the COVID-19 pandemic, the Company is relying on the blanket relief granted by the securities regulatory authorities in Canada to postpone the filing of its Q1 2020 reports. (Plomosas, Sinaloa).
Aura Minerals Inc. expects it will be able to gradually and safely resume activities at Aranzazu, Zacatecas, over the next few weeks.
Canasil Resources Inc. granted 1.75 M incentive stock options to directors, officers, consultants and employees. David Terry has agreed to act as an advisor to Canasil’s board of directors (La Esperanza, Zacatecas).
Orex Minerals Inc. intends to undertake a private placement financing to raise gross proceeds of up to $2 M. “Orex intends to use the net proceeds of the Offering to maintain its 40% share of the Sandra-Escobar Project in good standing and fund its 40% share of the upcoming work program, and for general corporate and working capital purposes”.
Silver Tiger Metals Inc. (formerly Oceanus Resources) announced it is now trading on the OTCQB, a US interdealer quotation system. Silver Tiger’s common shares also trade on the TSX Venture Exchange under its trading symbol SLVR (El Tigre, Sonora).
VanGold Mining Corp. adopted a warrant acceleration bonus program for its outstanding share purchase warrants granted in connection with the company’s 2019 private placement financing (El Pinguico, Zacatecas).
Equinox Gold Corp. reports that from April 1 to May 25, 2020, warrants s held by various security holders have been exercised for net proceeds of approximately $145 M. “As at May 26, 2020, the Company’s cash balance is more than $480 million” (Los Filos, Guerrero).
Southern Silver Exploration Corp. announced that the TSX Venture Exchange has approved the extension of the expiry date of certain of the company’s outstanding common share purchase warrants for an additional two years, with the expiration date now from June 2022 to September 2022 (Cerro Las Minitas, Durango).
Ridgestone Mining Inc. common shares are now listed on the Frankfurt Stock Exchange, broadening the corporation’s shareholders base in Europe (Rebeico, Sonora).
Aztec Minerals Corp. has engaged “Commodity-TV and Rohstoff-TV for an initial three month period to assist with Aztec’s investor relations activities. Pursuant to an agreement dated May 20, 2020, Aztec will pay C&R-TV €9000 plus expenses. C&R-TV is based in Switzerland and will introduce Aztec to its European investor network” (Cerro Cervantes, Sonora).
Vizsla Resources Corp. entered into an agreement with Canaccord Genuity Corp. for a bought deal purchase of shares for C$4 M in gross profits (Panuco, Sinaloa).
DynaResources Inc. closed a financing agreement with Golden Post Rail, LLC. and with certain individual shareholders of DynaUSA. Golden Post acquired a convertible promissory note of $2.5 M, bearing interest at 10% and maturing two years from the execution date. The other purchaser acquired convertible security notes in the amount of $1.4 M, bearing interest at 10% and maturing two years from the date of issuance (San Jose de Gracia, Sinaloa).
Minaurum Gold Inc. closed its previously announced brokered private placement offering, for aggregate gross proceeds of $5 M (Alamos Silver, Sonora).
Telson Mining Corp. closed a second and final tranche of the non-brokered private placement announced on December 27, 2019, for gross proceeds of $196.6 K (Tahuehueto, Durango).
Golden Tag Resources Ltd. Announced a non-brokered private placement for gross proceeds of up to $1.12 M. “Subsequent to closing of the Financing, the Company will have cash balances of approximately $2.1 million, and no debt” (San Diego, Durango).
Solaris Resources Inc. completed a non-brokered private placement financing raising gross proceeds of C$20 M (La Verde, Michoacan).
Mammoth Resources Corp. announced a non brokered private placement for gross proceeds of up to $131 K (Tenoriba, Chihuahua).
Consolidated Zinc Ltd. announced that the fully underwritten pro-rata non-renounceable entitlements offer to raise $1.73 M on the basis on 1 new share for every 3 shares held at the record date has closed (Plomosas, Chihuahua).
ON RESOURCES AND DEVELOPMENT
Mexican Gold Mining Corp. announced the company will resume activities at Las Minas, Veracruz, in July of 2020, with the goal of having all the necessary inputs for a preliminary economic assessment (PEA) study completed by the end of the year. A 3,000 m drilling program has been designed to expand and upgrade the current resource at El Dorado and continue exploration at the Cinco Señores and Changarro areas. A comprehensive metallurgical study is to be elaborated, as well as an airborne LIDAR on 50 square Km to map the ground surface to 10 Cm resolution.
Golden Minerals Co. announced the filing on SEDAR of a preliminary Economic assessment (PEA) for its Rodeo property in Durango.
Bacanora Lithium PLC. updated on activities at its Sonora Lithium project in Sonora. The pilot plant in Hermosillo is to remain closed until authorities lift the Coronavirus pandemic restrictions. Completion of the flow sheet engineering will provide an engineering, procurement and construction style engineering proposal to produce downstream battery grade lithium products, is now scheduled for end of Q4, 2020. from Sonora.
Discovery Metals Corp. informed that to date the company has completed 17,500 m (48 holes) of its planned 30,000 to 35,000 phase 1 drill program, demonstrating near-surface higher-grade potential over a strike length of 1,250 m, intercepting multiple sulfide veins with grades over 1 kilogram silver per tonne at its Cordero project, Chihuahua.
ON DEALS AND CORPORATE ISSUES
Mithril Resources Ltd. has completed the acquisition of Sun Minerals Pty Ltd., which holds and exclusive option to acquire the high-grade Copalquin project in Durango. The company issued 673.85 M ordinary shares for the acquisition of all the issued capital of Sun Minerals. Mithril also issued 10 M ordinary shares and paid US$200 K to Compañía Minera Copalquin, S.A. de C.V., and issued 225 M performance rights.
Candente Gold Corp. informed the memorandum of understanding (MOU) the company signed with Magellan Acquisition Corp. giving Candente the right to earn up to a 100% interest in both the SDA plant and the El Dorado property, in Nayarit, has been amended such that a payment of US$5 K is being paid upon signing the revised MOU and the payment of shares upon completion of due diligence and a definitive agreement to earn 10% interest has been increased from 4 M shares to 5 M shares, all other terms remain the same. The MOU is subject to TSX Venture approval as well as due diligence and execution of a definitive agreement.
Sonoro Metals Corp. has published a revised version of its Cerro Caliche project development report dated May 22, 2020. As a result of a review by the British Columbia Securities Commission, Sonoro withdrew an April 28, 2020 version of this project development report as it contained certain technical disclosures that did not comply with National Instrument 43-101 standards of disclosure for mineral projects. The revised report is not a technical report as defined by NI 43-101 and has been updated to address those disclosure issues and is now available on the Cerro Caliche project page of the Company’s website.
ON SOCIAL RESPONSIBILITY
Minera Peña Colorada donated 1000 sets of groceries to aid the most needed families in Cuatitlán de García Barragán, Jalisco.
Grupo Mexico donated 23 respiratory ventilators to the State of Sonora, to be distributed mainly in the capital hospitals.
Fresnillo PLC donated personal medical protection equipment in Caborca, Sonora.
Minera Real Bonanza supports the fight against the Covid-19 menace through the Hacienda Santa Ana museum in Real de Catorce, San Luis Potosi.
Grupo Mexico Foundation and Fechac delivered health protection kits to hospitals in Ciudad Juárez, Chihuahua.
Fresnillo PLC donated a respiratory ventilator to health authorities in Durango.
Fresnillo PLC donated medical protection equipment to a hospital in Fresnillo, Zacatecas.
The mining industry in Sonora has contributed with sanitizing kits, grocery kits, medical protection sets, hospital equipment, office equipment and public spaces sanitizing. These have benefited 125,813 people with an investment of $64.6 M pesos during April and May 2020, in communities like Cananea, Caborca, La Colorada, Nacozari, Cumpas, Fronteras, Magdalena, San Javier and Esqueda.
During the 20th week of the year (May 11th to May 17th, 2020), at least 43 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, Camimex informed 23 mining companies supported 16 States on the Coronavirus emergency. The federal government announced the inclusion of the mining industries in the list of “essential” activities that could be performed under the Coronavirus emergency, starting on 18 May 2020…. only to backtrack a few days later with the announcement that mining companies “can begin to prepare” on 18 May, to start working on 01 June, 2020. Francisco Quiroga, sub-secretary of Mining, stated that the mining industry cannot wait until 01 June, 2020, for reactivation. The Supreme Court will evaluate the impugnation against the reform by which the federal government took control of the Mining Fund. First Majestic has taken steps to sue the federal government under provision of chapter 11 of NAFTA, on grounds of double taxation. ON EXPLORATION, in Sinaloa, Vizsla Resources released results from seven historic holes from the Plomosas Mine area at its Plomosas project. In Zacatecas, Alien Metals informed on two targets defined with the aid of IP, gravity, magnetic and geochemical surveys at its Donovan 2 property. ON MINING, Santacruz Silver, Great Panther Mining, Torex Gold, Capstone Mining, Alamos Gold, Consolidated Zinc and Newmont announced their coming back to production on 18 May 2020 (the date previously released by the government to end the mining lockdown). Fortuna Silver, Argonaut Gold, Sierra Metals, Starcore International and First Majestic released quarterly results. Excellon Resources will postpone the filing of its interim financial statements. ON FINANCING, Canuc Resources closed a financing round for $100 K., Americas Gold and Silver closed it bought deal financing for C$28.75 M. Silver Viper opened a private placement intending to raise up to C$5 M. Minaurum Gold announced a C$4.2 M financing, concurrent with the previously announced C$5 M financing. Endeavour Silver entered into an agreement to raise up to $23 M for its Terronera project. GR Silver Mining granted 1.38 M options to insiders. Starcore commenced trading on the OTCQB. Oceanus Resources is to change name to Silver Tiger Metals Inc. ON RESOURCES AND DEVELOPMENT, SilverCrest Metals released infill and expansion results on the high grade footprint of the Babi Vista vein, which by now stands at 400 m long by 200 m in height, 1 m wide, grading 20.26 gpt Au, 1,590 gpt Ag. GR Silver Mining released high-grade results from historic drill holes at its Plomosas project in Sinaloa. GoGold Resources released drill hole results from the Los Ricos South project in Jalisco. Golden Minerals filed a PEA on its Velardeña properties in Durango. Sierra Metals filed a technical report on the Bolivar mine, Chihuahua. ON DEALS AND CORPORATE ISSUES, Vizsla Resources renegotiated the terms of the Rio Panuco agreement, reducing by $4.2 M the payments to be made before early 2022. Sonoro Metals withdrew the technical report on Cerro Caliche, Sonora, as required by the British Columbia Securities Commission. Discovery Metals announced the resignation of Jose Vizquerra from the board of directors. ON SOCIAL RESPONSIBILITY. Minera San Julian, Capstone, Fresnillo PLC, Endeavour Silver, Argonaut Gold, Peña Colorada, La Cantera Desarrollos Mineros, First Majestic, Newmont and Grupo Mexico informed on donations ad work realized to aid communities, mainly on subjects related to the Coronavirus emergency, like medical supplies and equipment (even the construction of a hospital), but comprising also a large array of investments and measures that benefit the mining communities.
ON MEXICO ISSUES
Camimex informed 23 mining companies working in Mexico have supported 16 States in the country, with activities and donations of medical supplies to aid communities in the Coronavirus emergency. Mexico was the only country in North America that did not place mining within the essential industries to continue activities during the lockdown.
The Consejo de Salubridad General (General Health Council) approved four agreements for the gradual lifting of measures to fight the Coronavirus, one of which is the declaration of mining as part of the essential industries that are permitted to continue work during the Covid-19 emergency (Important.- See note below).
Adding to the confusion on government announcements, the sub-secretary of health prevention and promotion Hugo López Gatell informed mining, construction and automobile industries are to start activities until 01 June 2020. Most mining companies had already announced the commencement of activities on 18 May, 2020, as the mining industry had been declared essential, a term which has allowed other industries to continue activities during the Coronavirus emergency. In this twist of events, the sub-secretary said these industries can prepare for starting work on 01 June, 2020, and that further notice on physical modification of workspaces, schedules, and distance between workers, among other regulations to be announced on 18 May, 2020.
Francisco Quiroga, sub-secretary of Mining, stated that the mining industry cannot wait until 01 June, 2020, for reactivation. This after the Health Secretariat established a two week preparation period for re-establishment of operations. “We cannot wait to the termination of the pandemic to get back to work. In mining we return to operate adhering to strict protocols and sanitary measures: since the people leaves home until they return”.
The Supreme Court will evaluate (after five months wait) the impugnation against the reform by which the federal government took control of the Mining Fund. The Supreme Court also has to rule in the case of Puebla’s indigenous communities against the granting of mining concessions in their ground.
First Majestic Silver Corp. “has taken steps to serve the Government of Mexico with a Notice of Intent to Submit a Claim (“Notice”) under the provisions of Chapter 11 of North American Free Trade Agreement (“NAFTA”)”. The company claims the SAT (Servicio de Administración Tributaria, equivalent to the IRS in USA), has shown a strong deviation from several international treatises on double taxation. “The service of this Notice by the Company on the Government of Mexico initiates a 90-day process for the Government of Mexico to enter into good faith and amicable negotiations with the Company to resolve the current dispute”.
Vizsla Resources Corp. released drilling results from seven holes on the Honduras vein and surface and underground sampling of the Animas, Cordon de Oro and Napoleon vein corridors at its Panuco project in Sinaloa. Highlighted drill intercepts comprise 4.35 m @ 208 gpt Ag, 0.83 gpt Au (including 1.0 m @ 432 gpt Ag, 1.55 gpt Au) and 2.60 m @ 151 gpt Ag, 1.02 gpt Au (including 0.70 m @ 294 gpt Ag, 2.09 gpt Au). Highlighted surface and underground sampling results comprise: 3.2 m @ 44 gpt Ag, 16.52 gpt Au (including (1.0 m @76 gpt Ag, 38.20 gpt Au); 11.90 m @ 140 gpt Ag, 1.67 gpt Au (including 2.90 m @ 249 gpt Ag, 3.84 gpt Au); 4.20 m @ 230 gpt Ag, 3.13 gpt Au (including 1.20 m @ 655 gpt Ag, 10.15 gpt Ag).
Alien Metals Ltd. informed excellent targets have been generated at its Donovan 2 project in Zacatecas, from an IP survey, coincident with previous geophysical and sampling results. The two stronger targets comprise the North zone prospect known as Cerro de la Cruz where ground magnetics, gravity and IP geophysics all returned coincident anomalies and the Central prospect known as Los Alomos where historical anomalous rock samples and the ground IP geophysics returned coincident anomalies.
Fortuna Silver Mines Inc. released financial results for the first quarter of 2020, without elaborating on figures from its Mexican operations. “As at March 31, 2020, the Company had $88.5 million of cash and cash equivalents…. and the company’s $150 M bank credit facility had been fully drawn”. AISC per silver ounce in the San Jose mine in Oaxaca was $10.70.
Argonaut Gold Inc. released its operating and financial results for the first quarter of 2010, including figures from its Mexican operations. The El Castillo Complex in Durango produced 28,508 Oz AuEq at a cash cost of $941, with 5.28 M tonnes of waste moved and 5.63 M tonnes of ore mined and 4.68 M tonnes placed on the heaps @ 0.44 gpt Au, producing 27,270 Oz Au, 99 K Oz Ag. La Colorada in Sonora produced 13,028 Oz AuEq at a cash cost of $1,021 per Oz Au, with 4.68 M tonnes of waste moved, and 947 K tonnes of ore mined and 966 K tonnes loaded to the leach pads @ 0.35 gpt Au, producing 13,028 Oz Au, 54.2 K Oz Ag. The company is preparing to restart activities at its two operating units as restrictions to work on the Coronavirus emergency ease.
Sierra Metals Inc. presented consolidated results for the first quarter of 2020. The Bolivar Mine processed a record 377.5 K tonnes in Q1 2020, representing a 43% increase over Q1 2019. Copper represents 40% of Sierra Metals’ revenue in Q1 2020, as the Company is trending towards copper as its main product as a percentage of revenue. During the period 8,048 m were drilled at Bolivar, Chihuahua, whereas at Cusi, also in Chihuahua, 2,172 m were drilled. The company held 36.9 M in cash and cash equivalents by the end of the period, with $49.2 M in working capital.
Starcore International Mines Ltd. announced production results for the fourth quarter of fiscal year 2019, ended April 30, 2020, at its San Martin mine in Queretaro. During the quarter 56.k tonnes were milled @ 1.65 gpt Au, 25.3 gpt Ag, recovering 88.7% Au, 55.8% Ag, to produce 2,925 Oz AuEq.
Santacruz Silver Mining Ltd. commenced preparations to resume mining and milling operations at the Zimapan mine in Hidalgo on May 19, 2020.
Great Panther Mining Ltd. intends to restart operations in Mexico this month in accordance with the Mexican federal government’s announcements of the lifting of restrictions that have suspended mining operations in the country since the start of April (Topia, Durango).
Excellon Resources Inc. will postpone the filing of its interim financial statements and management’s discussion and analysis for the first quarter of 2020, relying on the blanket relief granted by Ontario Instrument 51-502, which provides for up to a 45-day extension for periodic filings (Platosa, Durango).
Fortuna Silver Mines Inc. presented first quarter 2020 results. At San José, in Oaxaca, 246.8 K tonnes were milled, averaging 2,837 tonnes per day (tpd) @ 216 gpt Ag, 1.33 gpt Au, with recoveries of 92% Ag, 91% Au, to produce 1.57 M OZ Ag, 9,630 Oz Au at production cash cost $7.50 per Oz Ag and AISC $10.70 per Oz Ag.
First Majestic Silver Corp. announced consolidated financial results for the first quarter 2020. Restart procedures are being taken after the announcement of the lifting of the Coronavirus emergency for mining companies, to start work by 18 May, 2020. The company ended the quarter with $145.2 M in cash and cash equivalents.
Torex Gold Resources Inc. plans to resume full production at its El Limón Guajes mining complex in Guerrero by the end of this month, following the designation of mining as an essential activity by the government.
Capstone Mining Corp. announces it has safely started ramping up operational activities at its Cozamin mine in Zacatecas, following the Mexican federal government announcement on May 12, 2020 that mining is an essential industry.
Alamos Gold Inc. expects to begin ramping up full operations at its Mulatos mine in Sonora on May 18, 2020. Following the Mexican government’s declaration of mining as an essential activity.
Consolidated Zinc Ltd. advised that the Mexican Government has instructed that all mining is to be considered an essential service, allowing the Plomosas mine and Aldama concentrator to re-commence operations from 18 May 2020. It is expected the ramp up back to full production will be completed by the end of May.
Newmont Corp. expects to begin safely ramping up operations at Peñasquito in Mexico on May 18 following the government’s designation of mining as an essential activity. “On April 22, Peñasquito reached a definitive agreement with the San Juan de Cedros community (one of 25 neighboring communities) in Zacatecas, Mexico on land use, water availability, infrastructure and social investments. This includes access to 10,000 hectares for exploration and operational purposes, and resolves all outstanding issues with the community. The agreement was reached with the support of Mexico’s Ministry of Interior (SEGOB) and representatives of the State of Zacatecas and was signed by elected representatives of the Cedros community. The agreement is expected to be ratified in a General Assembly once COVID-19 restrictions on gatherings are lifted by the government. The agreement expressly states that any future disputes will be resolved through dialogue and free of blockades”.
Canuc Resources Corp. closed a non-brokered private placement for gross proceeds of $100 K (San Javier, Sonora).
Starcore International Mines Ltd. announced its shares have been approved to commence trading on the OTCQB. “This listing on the OTCQB compliments the Company’s listings on the Toronto Stock Exchange and the Frankfurt Stock Exchange” (San Martin, Queretaro).
Americas Gold and Silver Corp. closed its previously announced bought deal financing with a syndicate of underwriters co‐led by Cormark SecuritiesInc. and Desjardins Capital Markets for aggregate gross proceeds of C$28.75 M (Cosalá, Sinaloa).
Consolidated Zinc Ltd. has established an on-line application for shareholders to subscribe for the new shares under the Entitlement Offer 23 April 2020 (Plomosas, Chihuahua).
Silver Viper Minerals Corp. entered into a letter of engagement with Eight Capital and Red Cloud Securities Inc. for a private placement aiming to raise C$5 M in gross proceeds (La Virginia, Sonora).
GR Silver Mining Ltd. granted incentive stock options to certain directors, officers, and consultants to purchase up to an aggregate of 1.38 M shares of the Company (Plomosas, Sinaloa).
Minaurum Gold Inc. announced that, concurrent with its C$5 M marketed private placement announced on May 4, 2020, the company has agreed to issue up to a further 10.5 M units to raise additional C$4.2 M in gross proceeds (Alamo Silver, Sonora).
Endeavour Silver Corp. entered into a sales agreement with BMO Capital Markets, CIBC Capital Markets, H.C. Wainwright & Co., TD Securities, Roth Capital Partners, B. Riley FBR and A.G.P., to sell common shares to raise gross proceeds of up to $23 M. No offers of sales of common shares will be made on the TSX or other trading markets in Canada. Net proceeds will be used to advance its Terronera project in Jalisco.
Mithril Resources Ltd. advised that its 1 for 1 Non-Renounceable Rights Issue closed at 5:00pm on 14 May 2020 (Copalquin, Durango).
Oceanus Resources Corp. announced that it is changing its name to Silver Tiger Metals Inc. on the TSX Venture Exchange. The company also announced a non-brokered private placement to raise up to $675 K (El Tigre, Sonora).
ON RESOURCES AND DEVELOPMENT
SilverCrest Metals Inc. is to restart exploration and development work at its Las Chispas Project in Sonora by mid-May, using strict COVID-19 protocols. The company also released in-fill and expansion drill results for the BaBi Vista vein at Las Chispas. The updated high-grade footprint is 400 m along vein strike by 200 m in height, grading 20.26 gpt Au and 1,590 gpt Ag over an average true width of 1.0 m, and open in most directions. Highlighted results from the last drill holes comprise true width intervals of 0.6 m @ 3.29 gpt Au, 216 gpt Ag; 0.9 m @ 12.44 gpt Au, 1,103 gpt Ag; 0.6 m @ 1.17 gpt Au, 93 gpt Ag; 0.4 m @ 2.0 gpt Au, 232 gpt Ag; 1.8 m @ 78.83 gpt Au, 5,235 gpt Ag; 0.4 m @ 3.12 gpt Au, 302 gpt Ag; 0.4 m @ 2.05 gpt Au, 148 gpt Ag; 0.4 m @ 4.72 gpt Au, 401 gpt Ag.
GR Silver Mining Ltd. reported high-grade drill results at its Plomosas project in Sinaloa. The results are from holes in the Plomosas mine area, drilled by previous operators of the property. Highlighted true width (TW) intervals comprise 1.74 m @ 118 gpt Ag, 30.64 gpt Au, 0.1% Pb, 0.1% Zn; 1.30 m @ 4.75 gpt Au; 4.23 m @ 57 gpt Ag, 1.35 gpt Au, 3.7% Zn, 3.3% Pb; 3.13 m @ 31 gpt Ag, 4.54 gpt Au, 5.8% Zn, 5.2% Pb; 4.96 m @ 52 gpt Ag, 2.60 gpt Au; 0.7% Zn, 3.1% Pb; 0.98 m @ 850 gpt Ag, 0.14 gpt Au, 0.8% Zn, 1.2% Pb; 14.09 m @ 185 gpt Ag, 0.07 gpt Au, 0.6% Zn, 0.8% Pb; 2.70 m @ 240 gpt Ag, 0.05 gpt Au, 0.9% Zn, 1.6% Pb; 3.42 m @ 240 gpt Ag, 0.05 gpt Au, 1.0% Zn, 1.6% Pb; 4.28 m @ 760 gpt Ag, 2.3% Zn, 1.5% Pb; 12.15 m @ 225 gpt Ag, 0.43 gpt Au, 3.0% Zn, 3.6% Pb; 1.45 m @ 1,659 gpt Ag, 0.19 gpt Au, 1.2% Zn, 3.7% Pb; 1.93 m @ 96 gpt Ag, 4.11 gpt Au, 0.8% Zn, 5.9% Pb.
GoGold Resources Inc. released assay results from 15 diamond drill holes at the Los Ricos South project in Jalisco. Highlighted core length intervals comprise 14.6 m @ 1.64 gpt Au, 136 gpt Ag; 15.7 m @ 0.52 gpt Au, 22 gpt Ag; 18.0 m @ 0.65 gpt Au, 85 gpt Ag; 19.0 m @ 0.89 gpt Au, 208 gpt Ag (including 5.4 m @ 2.28 gpt Au, 559 gpt Ag and 3.2 m @ 3.13 gpt Au, 858 gpt Ag); 11.5 m @ 0.86 gpt Au, 61 gpt Ag.
Golden Minerals Co. announced the filing on SEDAR of a preliminary economic assessment (PEA) and accompanying technical report for its Velardeña properties in Durango.
Sierra Metals Inc. filed a 43-101 compliant technical report on the Bolivar mine in Chihuahua. “There are no material differences in the Report from those results disclosed in the Company’s press release dated March 31, 2020”.
ON DEALS AND CORPORATE ISSUES
Vizsla Resources Corp. renegotiated the terms of the Rio Panuco option agreement, extending it for one more year. The Silverstone option period has been extended into 2022 and the total Panuco mining district option payments between now and the beginning of 2022 will be reduced by over USD$4.1 M, from USD$5.63 M to USD$1.48 M. The total Panuco and Silverstone agreement is for USD$43.08 M in seven years.
Sonoro Metals Corp. withdraws Cerro Caliche project development report filed on April 28, 2020, as a result of a review by the British Columbia Securities Commission. “The Company is amending the Report to correct problematic technical disclosures, and expects to publish a revised version in the next week” (Cerro Caliche, Sonora).
Discovery Metals Corp. announced that Mr. Jose Vizquerra has resigned as a director of the company to focus on other professional commitments (Cordero, Chihuahua).
ON SOCIAL RESPONSIBILITY
Minera San Julián (Fresnillo PLC), donated 20 tonnes of non-perishable food to the community of Guadalupe y Calvo, Chihuahua, as well as 2,300 face masks.
Capstone has donated approximately $150,000 pesos in Hacienda Nueva, Zacatecas. Food supplies and sanitizers are among the articles delivered.
Fresnillo PLC is to finish construction of the Covid-19 Hospital, in Fresnillo, Zacatecas by the end of May.
Fresnillo PLC donates medical equipment to the IMSS and General Hospital in Caborca, Sonora. The supplies include face masks, disinfectant gel and N95 face masks.
Endeavour Silver informed that during 2019 70% of all training involved safety education; received the “Caso de Plata” safety award at Guanacevi, Durango; Completed an average of 47 hours of training for each employee; supported 118 students with scholarships; sponsored several events to engage with over 1,000 locals in communities near Terronera, in Jalisco; fully funded a multi-use recreational facility for El Cubo community; planted 51,000 trees in reforestation projects and paid $5 M in various taxes.
Argonaut Gold Inc. informed it has delivered its 3,000th academic scholarship in Mexico, has initiated a local program with the community of Cerro del Gallo for the cleaning of the San Antón de las Minas River in Guanajuato, provided 150 food support pantries for families in San Juan del Rio in Durango and held the opening ceremony for the Argonaut Community House in La Colorada, Sonora, a center that the company donated to the community that is open for local stakeholders to interact with Argonaut team members and attend courses.
Peña Colorada donated 1,000 lab coats for doctors and 1,000 K95 face masks in Colima.
La Cantera Desarrollos Mineros installed the community lunch room in the El Encino neighborhood, in Guanajuato. The objective, partnering with the Municipality, is to assist the most needed with food supplies during the Coronavirus emergency; more than 60 families were serviced on the first day of operation.
First Majestic delivered 900 health sets to inhabitants of Tayoltita, Durango.
Newmont and the Zacatecas State signed an agreement to fight Covid-19. The company already has an integrated plan accepted by the Mining Sub-Secretariat, with a health perimeter and a protocol to follow should a Covid-19 positive case presents in the area. More than 24 tonnes of food has been delivered to persons in need on 25 communities, and Mx$5.25 M have been invested in the strengthening of hospital capacity; furthermore, 500 Covid-19 test kits were donated to the Health Secretariat and ventilators and screens are to be delivered to the desert health clinics.
Grupo Mexico and Cemza donate medical equipment in Campeche. The two groups donated medical equipment and supplies to the General Hospital “María del Socorro Quiroga Aguilar”.