Gold-bearing orogenic quartz vein

By Miguel A Heredia

During the 35^th week of the year (August 26^th to September 1^st 2024), at least 28 press releases were announced by companies working in Mexico, and 3 news published by the media, with thirteen disclosing deals and corporate issues, five communicating production and financial results, five reporting resources and development of their properties, four commenting on Mexican issues, two announcing financing rounds, one informing on exploration results, and one discussing social issues. ON MEXICO ISSUES, Industrias Peñoles reported that its Tizapa mine in the State of Mexico suspended operations due to strike call promoted by the National Union of Mining, Metallurgical, Steel and Similar Workers of the Mexican Republic. In Mexico, the Constitutional Affairs Committee of the Chamber of Deputies agreed to discuss the initiative to ban open-pit mining, which set off alarms in the extractive industry. Mining companies in Mexico are concerned about their production is affected by the ban on open-pit in the country. Vizsla Silver and Silver Tiger reported the best drilling intercepts in Mexico on the fifth week of August, 2024. ON EXPLORATION, In Chihuahua, Quetzal Copper provided an update on its Cristinas project.  ON MINING, Aura Minerals announcedan update to its long-term production guidance (Aranzazu mine, Zacatecas). Bear Creek reported Q2, 2024 production results from its Mercedes mine in Sonora. Guanajuato Silver announced Q2, 2024 consolidated production and financial results from their Mexican operations. Luca Mining presented its consolidated production and financial results for Q2, 2024 (Campo Morado mine in Guerrero and Tahuehueto mine in Durango). Minera Alamos provided an operations update and Q2, 2024 financial results. ON FINANCING, Alamos Gold declared quarterly dividend (Mulatos mine, Sonora). Southern Silver closed the third and final tranche of its previously announced non-brokered private placement for gross proceeds of $211,530 (Cerro Las Minitas project, Durango). ON RESOURCES AND DEVELOPMENT, Silver Tiger reported results from its Pre-Feasibility Study drilling program at its El Tigre project in Sonora. Guanajuato Silver provided an operations update of their Mexican properties (Topia mine in Durango, San Ignacio mine in Guanajuato, and El Horcon mine in Jalisco). Vizsla Silver filed a PEA technical report on its Panuco project in Sinaloa. Vizsla reported results of 22 infill drill holes from its Copala project in Sinaloa. Xali reported that now it has two active projects in the El Oro mining district, state of Mexico.  ON DEALS AND CORPORATE ISSUES, Aztec Minerals announced the appointment of its strategic advisor (Cervantes project, Sonora).  Torex reported that it will be hosting an analysis and investor day on September 5, 2024 (El Limon Guajes project, Guerrero). Goldgroup announced marketing agreement (Cerro Prieto mine, Sonora).  Plata Latina granted stock options to its Directors, Officers, and Consultants (Naranjillo project, Guanajuato). Silver Storm announced that it is providing bi-weekly update on the status of its management cease trade order (MCTO) issued on July 30, 2024. Vizsla Royalties advised that it had elected to halt trading of its warrants but later on it announced that it had been advised by the TSX Venture Exchange (TSX-V) that the warrants of the company will resume trading on the TSX-V (Panuco project, Sinaloa). Regency Silver announced the appointment of a new member to its Advisory Committee (Dios Padre project, Sonora). Endeavour Silver is being investigated by The Schall Law Firm for securities fraud (Guanacevi mine, Durango). Galore provided a status report regarding its Management Cease Trade Order (MCTO) issued by the British Columbia Securities Commission (Dos Santos project, Zacatecas). Torex reported a contractor fatality at it’s the Morelos Complex, Guerrero. Luca Mining clarified an early warning report issued by Trafigura regarding a debt restructuring agreement (Campo Morado mine, Guerrero). Royalties Inc., announced that it continues advancing in monetizing its Bilbao property in Zacatecas, and achieving success in lawsuit against Capstone Gold to properly recognize and pay a NSR as part of the Cozamine mine in Zacatecas. ON SOCIAL RESPONSIBILITY, Orla Mining released its 2023 sustainability report (Camino Rojo mine, Zacatecas).

ON MEXICO ISSUE

• Industrias Peñoles S.A.B de C.V., reported that its Tizapa mine in the State of Mexico, suspended operations due to strike call promoted by the National Union of Mining, Metallurgical, Steel and Similar Workers of the Mexican Republic. The facility was the subject of scrutiny by the authorities in recent months, due to a request from the United States to review a possible violation of labor rights, within the framework of the North American trade agreement, USMCA, which the company denied. The company stated that it “fully” complies with the obligations of the labor agreement and local labor laws, and noted that “it will adhere to the corresponding legal and administrative procedures to resolve this conflict”.
• In Mexico, The Constitutional Affairs Committee of the Chamber of Deputies agreed to discuss the initiative to ban open-pit mining, which set off alarms in the extractive industry, which demands an open parliament before approving a reform that they warn will generate shortages of essential resources in North America, in addition to having a fiscal impact of around MXP $30 billion in contributions to the Treasury by companies. Pedro Rivero Gonzalez, President of the Mexican Mining Chamber (CAMIMEX) stated that open-pit mining is very important for the country, not only because 60% of production in Mexico comes from this extractive technique, but also because the prohibition of this activity compromises more than MXP $30 billion in various fiscal contributions for the federal government, as well as a possible economic contraction estimated at MXP $250 billion annually (-1% of the National GDP).
• Mining companies in Mexico are concerned about their production is affected by the ban on open-pit in the country. The Mexican Mining Chamber (CAMIMEX) revealed that if this initiative is approved, the mineral that would be most affected is copper because so far there are few deposits in Mexico that can be exploited underground. Almost 70% of the copper produced in the country is by open-pit. In this regard, analysts stated that the losses for the country could be double, since it is estimated that the price of copper will increase by up to 40%, which means that the profitability of companies such as Grupo México, Minera Frisco, Nemisa and Capstone Copper will see their income affected. According to CAMIMEX, banning open-pit mining will generate an economic contraction of 250 billion pesos and it estimated that more than a million formal jobs will disappear, a fact that worries companies that have exploration projects in Mexican territory.
• Vizsla Silver Corp., and Silver Tiger Metals Inc., reported the best drilling intercepts in Mexico on the fifth week of August, 2024. Details are shown in the table below:

ON EXPLORATION

• Quetzal Copper Corp., provided an update on its Cristinas project in Chihuahua. The company completed two drill holes and conducted a deep penetrating geophysical survey (InfiniTEM XL downhole) to better understand known electromagnetic anomalies. Drilling is set to resume soon, with the aim of completing the program by September 2024. Quetzal announced that it has completed the geophysical survey and are modelling the results to design the next phase of drilling, with plans to announce the results of the drill program in September 2024.

ON MINING

• Aura Minerals Inc., announcedan update to its long-term production guidance with the recent acquisition of two mining rights. Aura plans to exceed 450K annual Oz AuEq consolidated production target in the coming years (Aranzazu mine, Zacatecas).
• Bear Creek Mining Corporation reported Q2, 2024 production results from its Mercedes mine in Sonora (currency expressed in US dollars). The company mined 93,093 tonnes of 3.3 g/t Au with a metallurgical recovery of 94% and processed 95,727 tonnes of 3.23 with a metallurgical recovery of 94% to produce 9,304 Oz Au and 40,893 Oz Ag. Bear Creek sold 9,155 Oz Au at cash and AISC of $1,657 and $2,058 per Oz Au sold, at an average realized Au price of $2,318 per Oz. It also reported revenue of $22.1M; comprehensive loss after taxes of $11.2M; comprehensive loss per share of $0.05; adjusted loss after taxes of $8.6M; adjusted loss per share of $0.04; cash generated from operating activities of $4.8M; and cash used in investing activities of $5.4M. 
• Guanajuato Silver Company Ltd., announced Q2, 2024 consolidated production and financial results from their Mexican operations (El Cubo, Valenciana and San Ignacio Mine complexes in Guanajuato, and Topia mine in Durango). (All currency is expressed in US dollars). The company mined 171,354 tonnes and milled 161,457 tonnes to produce 398.7K Oz Ag, 4,255 Oz Au, 806.3K Lb Pb, and 1.1M Lb Zn (823.7K Oz AgEq). It sold 403.1K Oz Ag, 4,306 Oz Au, 787.6K Lb Pb, and 1.07M Lb Zn (833.2K Oz AgEq) at a realized price of $26.78/Oz Ag, $2,334.24/Oz Au, $0.98/Lb Pb, and $1.29/Lb Zn. Cash and AISC per Oz AgEq were $19.93 and $25.55 respectively. Guanajuato Silver also announced consolidated financial results. The company reported revenue of $20.55M; cost of sales of $19.6M; mine operating income of $947K; mine operating cash flow before taxes of $3.89M; net loss of $2.75M; EBITDA of $2M; and adjusted EBITDA of $1.9M.
• Luca Mining Corp., presented its consolidated production and financial results for Q2, 2024 (Campo Morado mine in Guerrero and Tahuehueto mine in Durango). (All currency is expressed in US dollars). Luca mined 159,096 tonnes and milled 153,676 tonnes to produce 4,278 Oz Au, 188.3K Oz Ag, 7M Lb Zn, 1.58M Lb Cu, and 1.5M Lb Pb (13,947 Oz AuEq). The company sold 3,629 Oz Au, 131.7K Oz Ag, 4.43M Lb Zn, 1.24M Lb Cu, and 546.5K Lb Pb (10,186 Oz AuEq) at a realized price of $2,315.12/Oz Au, $28.57/Oz Ag, $2,812.65/Tonne of Zn, $9,619.32/Tonne of Cu, and $2,148/Tonne of Pb. Cash and AISC per Oz AuEq were $1,490 and $1,766 respectively. Luca also presented consolidated financial results. It reported revenue of $18.2M; cost of sales of $15.5M; mine operating earnings of $2.7M; mine operating cash flow before taxes of $3.3M; net expenses of $4.67M, EBITDA of $6.15M; and adjusted EBITDA of $4.2M.
• Minera Alamos Inc., provided an operations update and announced Q2, 2024 results as well as some guidance regarding improved operations activity so far during Q3, indicating significant progress at its Santana gold mine in Sonora, where mining and stacking rates are approaching levels last seen in 2022. Through the end of August 2024 approximately 3,400 Oz Au will have been placed on the Santana leach pad since the restart of mining activities in June. The company anticipates a return to cash generation by Q4 2024. Additionally, the Cerro de Oro project in Zacatecas is advancing through the permitting process, with the company having completed final payments for full ownership. The focus remains on developing low-capital expenditure assets while expanding resources and pursuing strategic acquisitions. Minera Alamos also presented selected financial data (amounts expressed in Canadian dollars). The company reported  revenue of $1.5M; cost of goods sold and depletion of $1.3M; mine operating income of $169.6K on sales of 505 Oz Au; net loss of $7M; cash and cash equivalents of $8.6M; and working capital of $14.48M.

ON FINANCING

• Alamos Gold Inc., declared quarterly dividend of USD $0.025 per common share. The dividend is payable on September 26, 2024 to shareholders of record as of the close of business on September 12, 2024 (Mulatos mine, Sonora).
• Southern Silver Exploration Corp., closed the third and final tranche of its previously announced non-brokered private placement for gross proceeds of $211,530 by issuing 961,500 at a price of $0.22 per unit. Together with the first two tranches, Southern Silver has raised a total of $3,604,035.16 by the issuance of 16,381,978 units. Gross proceeds will be used for the continued development of the Cerro Las Minitas project in Durango, and for working capital.

ON RESOURCES AND DEVELOPMENT

• Silver Tiger Metals Inc., reported results from its Pre-Feasibility Study (PFS) drilling program at its El Tigre project in Sonora. The most significant drill intercepts were encountered in holes ET-23-531 (Stockwork Zone) with 0.47 g/t Au and 1 g/t Ag (0.48 g/t AuEq or 36 g/t AgEq) over 18.5m, plus 6.1 g/t Au and 9 g/t Ag (6.22 g/t AuEq or 466 g/t AgEq) over 1.5m, plus 0.29 g/t Au and 76 g/t Ag (1.3 g/t AuEq or 98 g/t AgEq) over 23.4m, including 1.2 g/t Au and 791 g/t Ag (11.75 g/t AuEq or 882 g/t AgEq) over 2.2m, plus 3.47 g/t Au and 29 g/t Ag (3.85 g/t AuEq or 289 g/t AgEq) over 1.6m, plus 1.59 g/t Au and 8 g/t Ag (1.7 g/t AuEq or 127 g/t AgEq) over 1.7m; hole ET-23-555 with 0.30 g/t Au and 16 g/t Ag (0.51 g/t AuEq or 39 g/t AgEq) over 8.8m (Stockwork Zone), plus 0.57 g/t Au and 12 g/t Ag (0.73 g/t AuEq or 55 g/t AgEq) over 69.1m, including 2.12 g/t Au and 1 g/t Ag (2.13 g(t AuEq or 160 g/t AgEq) over 7m, plus 4.16 g/t Au and 33 g/t Ag (4.59 g/t AuEq or 344 g/t  AgEq) over 2.3m (Seitz Kelly Vein), plus 0.09 g/t Au and 7 g/t Ag (0.18 g/t AuEq or 13 g/t AgEq) over 1.3m; and hole ET-23-562 with 0.59 g/t Au and 1 g/t Ag (0.6 g/t AuEq or 45 g/t AgEq) over 5.7m (Stockwork Zone), plus 0.46 g/t Au and 3 g/t Ag (0.51 g/t AuEq or 38 g/t AgEq) over 118.7m, plus 0.80 g/t Au and 28 g/t Ag (1.18 g/t AuEq or 89 g/t AgEq) over 2.6m (Seitz Kelly Vein). “These results further de-risk the project and, coupled with the advantageous geotechnical and metallurgical results, increase the confidence and size of the El Tigre Project.”
• Guanajuato Silver Company Ltd., provided an operations update of their Mexican properties, detailing advancements at its wholly owned mines in Mexico, including Topia mine in Durango, San Ignacio mine in Guanajuato, and El Horcon mine in Jalisco. At Topia, Durango, the company has successfully commissioned a new filter system to enhance the recovery of gold, silver, lead, and zinc, with expectations of a 2% increase in metal recoveries. At San Ignacio, Guanajuato, a new ore sorter is nearing commissioning, which is anticipated to improve processing efficiency. At Horcon, Jalisco, the company has recommenced the processing of surface stockpile material. To date, over 28,000 tonnes of mineralized material has been processed, generating over 125,159 Oz AgEq from mid-November 2023 to June of 2024. “Additionally, at Horcon the company has completed an underground sampling program that has mapped and surveyed over 5km of tunnels, adits, and old workings. The Company is now designing an underground drill campaign intended to expand geological knowledge in advance of a decision to potentially restart commercial underground operations at this satellite mine in the future”. 
• Vizsla Silver Corp., filed a Preliminary Economic Assessment (PEA) technical report on its Panuco project in Sinaloa with an effective date of July 24, 2024.
• Vizsla Silver Corp., reported results of 22 infill drill holes from its Copala project in Sinaloa (true widths reported). Drilling highlights include holes CS-24-381A with 3,698 g/t Ag and 41.2 g/t Au (6,270 g/t AgEq) over 4.36m, including 6,304 g/t Ag and 69.47 g/t Au (10,634 g/t AgEq) over 3.22m; hole CS-24-375 with 978 g/t Ag and 4.56 g/t Au (12.12 g/t AgEq) over 4.56m, including 1,775 g/t Ag and 11.80 g/t Au (2,447 g/t AgEq) over 0.41m, including 1,500 g/t Ag and 7.74 g/t Ag (1,911 g/t AgEq) over 0.57 m, including 5,894 g/t Ag and 22.97 g/t Au (6,983 g/t AgEq) over 1.42m, including 1,580 g/t Ag and 5.85 g/t Au (1,850 g/t AgEq) over 0.37m; hole CS-24-377 with 895 g/t Ag and 3.81 g/t Au (1,083 g/t AgEq9 over 10m, including 3,915 g/t Ag and 15.69 g/t Au (4,669 g/t AgEq) over 2m; and hole CS-24-380 with 1,861 g/t Ag and 12.20 g/t Au (2,554 g/t AgEq9 over 13.3m, including 4,463 g/t Ag and 28.92 g/t Au (6,037 g/t AgEq) over 4.36m, including 3,190 g/t Ag and 27.80 g/t Au (4,863 g/t AgEq) over 1.14m. “The reported drilling, designed to infill near-surface Indicated Mineral Resources, has confirmed high-grade mineral continuity where initial mining is likely to occur during the first two years of production at Copala central”.
• Xali Gold Corp., reported that now it has two active projects in the El Oro mining district, state of Mexico: El Oro Underground Project, and El Oro Tailings project.  At El Oro Underground Project, Xali and its JV partner Remedioambiente S.A. de C.V., met to review the field work completed to date to discuss how the two company’s plans for work can benefit each other and the local community. The underground access that Remedioambiente plans to open would be invaluable for Xali Gold’s exploration efforts, particularly for drilling. At El Oro Tailings Project, samples from the drill program for metallurgical test work were shipped to lab. Metallurgical testing is underway and results are expected by the end of Q3, 2024.

ON DEALS AND CORPORATE ISSUES

• Aztec Minerals Corp., announced that it has strengthened its technical advisory board with the appointment of its strategic advisor (Cervantes project, Sonora).
• Torex Gold Resources Inc., reported that it will be hosting an analysis and investor day on September 5, 2024 to discuss an internal pre-feasibility study on developing the EPO deposit at the company’s Morelos Complex, along with an update on the wider business, including Torex’s recently released multi-year exploration strategy. (El Limon Guajes project, Guerrero).
• Goldgroup Mining Inc., announced marketing agreement with Peak Investor Marketing Corp., to receive full-service marketing and consulting services focused on the junior mining sector. “The contract is for a 12-month term, with a fee of $12,000 per month and can be terminated after 6 months with 30-days written notice. As part of the agreement, Peak will receive 1,500,000 stock options with an exercise price of $0.075, valid for a period of 2 years from date of issuance. The options will vest over 12 months (as to one-quarter every 3 months) (Cerro Prieto mine, Sonora)”.
• Plata Latina Minerals Corporation granted stock options to its Directors, Officers, and Consultants. The options are exercisable at CAD $0.01 per share for a period of five years, expiring on August 23, 2029 (Naranjillo project, Guanajuato).
• Silver Storm Mining Ltd., announced that it is providing bi-weekly update on the status of its management cease trade order issued on July 30, 2024 by its principal regulator, the British Columbia Securities Commission, under National Policy 12-203 Management Cease Trade Orders (La Parrilla mine, Durango).
• Vizsla Royalties Corp., advised that it had elected to halt trading of its warrants but soon after  it announced that it had been advised by the TSX Venture Exchange (TSX-V) that the warrants of the company will resume trading on the TSX-V effective Wednesday September 4, 2024 at the opening of trading  (Panuco project, Sinaloa).
• Regency Silver Corp., announced the appointment of a new member to its Advisory Committee (Dios Padre project, Sonora).
• Endeavour Silver Corp., is being investigated by The Schall Law Firm on behalf of the investors for securities fraud. The investigation focuses on whether the company issued false and/or misleading statements and/or failed to disclose information pertinent to investors. “Endeavour issued a press release on August 12, 2024, informing investors that “the primary ball mill at the Guanacevi mill has failed and could take up to 12 weeks to replace” and that “as a result, processing of material at the Guanacevi mill has been suspended.” The Company further stated that “this downtime will impact Q3 production and is expected to impact annual production and cost guidance.”
• Galore Resources Inc. provided a status report regarding its Management Cease Trade Order (MCTO) issued by the British Columbia Securities Commission. The company confirmed no material changes since the last announcement, except for the engagement of Davidson & Company as the new auditor, replacing DeVisser Gray LLP. Galore expects to file its fiscal year-end financial statements, along with the Management Discussion and Analysis, by September 27, 2024. The report emphasizes that there are no further anticipated defaults and no undisclosed material information regarding the company’s affairs (Dos Santos project, Zacatecas).
• Torex Gold Resources Inc., reported a contractor fatality within the Guajes Tunnel at it’s the Morelos Complex, Guerrero. “Media Luna construction activities in the Guajes Tunnel have been temporarily suspended. An investigation to determine the cause of the accident is expected to commence shortly”.
• Luca Mining Corp., clarified an early warning report issued by Trafigura Beheer B.V., regarding a debt restructuring agreement. The agreement involved converting a USD $5.8M loan into a non-interest-bearing three-year term convertible debenture, which was conditionally issued to Trafigura´s subsidiary Union Holdings (Malta) Limited. The necessary amendments to security agreements were completed recently, allowing the debenture to be formally executed and released from escrow, maturing on January 11, 2027 (Campo Morado mine, Guerrero).
• Royalties Inc., announced that it continues advancing in monetizing its Ag-Zn-Pb Bilbao property in Zacatecas, ideally by selling to an existing silver producer for cash and shares in order to generate further potential gains from the rise in the price of silver, and achieving success in lawsuit against Capstone Gold S.A. de C.V., a subsidiary of Capstone Copper Corp. , to properly recognize and pay  the 2% NSR on the five Portree claims, which have been in production since 2020 and are part of the Cozamine mine in Zacatecas.

ON SOCIAL RESPONSIBILITY

• Orla Mining Ltd., released its 2023 sustainability report to highlight the company’s commitment to environmental, social, and governance (ESG) initiatives. The company “achieved global leading metrics on emissions and water management at its Camino Rojo operations in Zacatecas with 0.19 tonnes of CO2 equivalent per ounce of gold produced, and 0.12 m3/t of processed ore water intensity, with zero water discharge (100% of water reused and recycled); increased female representation among contracted workforce from 3.6% to 14.6%; generated USD $10.7M in community economic contributions at Camino Rojo, including salaries, local procurement, land leases and investments in local infrastructure; Achieved a lost time injury frequency rate of 1.71 across our sites. Lost time injury frequency rate (LTIFR) is a measure used in workplace safety to quantify the number of injuries resulting in lost work time, per one million hours worked; 25% of Orla’s corporate goals were ESG-linked, all of which were achieved; and 100% of Orla executives and managerial-level employees were evaluated against ESG performance”.

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On the picture above, a gold-bearing orogenic quartz vein in an orogenic gold project in Oaxaca, Mexico. Photo taken by Miguel A Heredia.