cease trade order

The Mining and Exploration News in Mexico: Highlights on the Second Week of August 2024

/ Gambusino Prospector / Leave a comment

By Jorge Cirett                                             

During the 32nd week of the year (August 5th to August 11th, 2024), companies working in Mexico posted at least 25 press releases. One company informed on exploration advances on a mining property, eleven companies provided operational/financial results for Q2 2024 and one hired a contractor for mining activities. One company closed the final tranche of its private placement. Four companies announced board appointments, one signed a LOI to acquire an AI company, another company received a cease trade order, two companies announced their merger and one more the amendment of an option on a property.  ON MEXICO ISSUES, no relevant news. ON EXPLORATION, In Sonora, Riverside Resources completed an aeromagnetic drone survey on Cecilia. ON MINING, Aura Minerals, Gold Resource, Fortuna Mining, Torex Gold, Pan American Silver, SilverCrest Metals, Coeur Mining, GoGold Resources, Equinox Gold, US Antimony and Sierra Metals presented second quarter 2024 reports. Luca Mining engaged a contractor to carry out core mining operations at Campo Morado. ON FINANCING, Heliostar Metals closed the final tranche of its non-brokered private placement. ON RESOURCES AND DEVELOPMENT, no relevant news. ON DEALS AND CORPORATE ISSUES, Golden Minerals, Aura Minerals, GR Silver and US Antimony announced board appointments. Tarachi Gold signed a LOI on the acquisition of AI company Prospector Portal Inc. Xali Gold received a cease trade order. Reyna Silver is to acquire all shares of Reyna Gold. Sonoran Desert Copper amended the option on Cuatro Hermanos project. Galore Resources announced a status report on its cease trade order. ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUES

  • No Relevant News.

ON EXPLORATION

  • Riverside Resources Inc. completed with Fortuna Mining Inc. the acquisition and interpretation of an aeromagnetic drone survey at its Cecilia project in Sonora. The UAV magnetic data covers the entire 60 Km2 property, aiding to interpret and refine previous targets identified by Riverside.

ON MINING

  • Aura Minerals Inc. filed financial statements for Q2 2024, including guidance figures for its Mexican operations. At Aranzazu, in Zacatecas, 24,692 Oz Au Eq were produced during the period. Guidance at Aranzazu for the full year is 94 K to 108 K Oz AuEq at a cash cost between $826 and $1,009 per Oz AuEq and an AISC of 1,089 to $1,331 per Oz AuEq.
  • Luca Mining Corp. engaged Cominvi S.A. de C.V. to carry out core mining operations at its Campo Morado mine in Guerrero. Luca Mining intends to increase mill throughput from the current 1,400-1,600 tpd to 2,000 tpd by year end, ultimately aiming to reach 2,400 tpd mill rate in 2025.
  • Gold Resource Corp. announced second quarter operational results from its Don David Gold mine in Oaxaca. During the period 93,687 K tonnes were milled, averaging 1.27 gpt Au, 102 gpt Ag, 0.26% Cu, 1.0 % Pb, 2.59% Zn, to produce 2,947 Oz Au, 263 K Oz Ag, 181 tonnes Cu, 616 tonnes Pb, 2,020 tonnes Zn (or 5,625 Oz AuEq).
  • Fortuna Mining Corp. reported its financial and operating results for the second quarter of 2024, including figures from its operations in Mexico. The company’s consolidated production was 92,716 Oz Au, 990.6 K Oz Ag in the period. At San José, in Oaxaca, 176.2 K tonnes were milled at a rate of 1,980 tpd, averaging 140 gpt Ag, 1.09 gpt Au, recovering 87% Ag, 85% Au, to produce 684.2 K Oz Ag, 5,269 Oz Au, at a cash cost of $24.91 and an AISC of $27.55 per Oz Ag. “The San Jose Mine has less operational flexibility in 2024 compared to 2023, due to the reduced and more dispersed Mineral Reserves associated with the Trinidad deposit, which also increased mine costs. Ore processed decreased by 10% due to lower tonnes mined”.
  • Torex Gold Resources Inc. reported its financial and operational results for Q2 2024. At its Morelos mine complex in Guerrero, the company produced 113,822 Oz Au (recovering 90.5% Au) at cash cost $1,014 per Oz Au and an AISC of $1,239 per Oz Au. The company ended the quarter with $108.7 M in cash and $237.1 M available on credit facilities. The Media Luna project is 78% complete, with commissioning expected late in 2024.
  • Pan American Silver Corp. announced results for Q2 2024, including figures from its Mexican operations. At La Colorada, in Zacatecas, 835 K Oz Ag, 500 Oz Au were produced at cash cost $15.30 and an AISC of $17.09. At Dolores, in Chihuahua, 440 Oz Au, 18,100 Oz Ag were produced at cash cost $1,113 per Oz Au and an AISC of $2,496 per Oz Au. “At La Colorada, Pan American invested $9.8 million on project capital in Q2 2024, largely for exploration and engineering on the Skarn project, and to complete the new ventilation infrastructure for the operating mine”. The company expects to end the year with a 2,000 tpd production rate at La Colorada.
  • SilverCrest Metals Inc. released its financial results for Q2 2024. At Las Chispas, in Sonora, 100 K tonnes were mined, 110.6 K tonnes milled at an average rate of 1,216 tpd, averaging 4.36 gpt Au, 418 gpt Ag, recovering 98.6% Au, 98.3% Ag, to produce 15,303 K Oz Au, 1.46 M Oz Ag at cash cost $8.87 per Oz Ag and an AISC of $16.88. At the end of the period the company had $98.3 M in cash and $24 M in bullion.
  • Coeur Mining Inc. reported second quarter results for the second quarter 2024, including figures from its Mexican operations. At Palmarejo, in Chihuahua, 429.6 K tonnes were milled during the period, averaging 2.05 gpt Au, 139.7 gpt Ag, recovering 89.9% Au, 82.8% Ag, to produce 25,467 Oz Au, 1.6 M Oz Ag, at CAS $1,006 per Oz Au and CAS $15.24 per Oz Ag. During the quarter Coeur bought adjacent Fresnillo plc mining concessions, increasing the area of the project to over 16,100 hectares. Full-year 2024 production is expected to be 95,000 – 103,000 Oz Au, 5.9 – 6.7 M Oz Ag.
  • GoGold Resources Inc. announced financial results for the quarter ending on June 30, 2024. During the period GoGold produced 138.7 K Oz Ag, 2,436 Oa Au, 148 tonnes Cu, 125 tonnes Zn (or 400.2 K Oz AgEq) at cash cost $18.54 per Oz AgEq and AISC of $24.59 per Oz AgEq. The company had US$76.4 M in cash by the end of the quarter.
  • Equinox Gold Corp. announced its second quarter 2024 summary financial and operating results, without specifying figures by operation. The company produced 122,221 Oz Au during the period. For 2024 guidance calls for 665 – 750 K Oz Au, at cash cost $1,305 – $1,405 per Oz Au, and an AISC of $1,635 to $1,735 per Oz Au. At Los Filos in Guerrero, 2024 guidance is 155 -175 K Oz Au, at cash cost $1,785 – $1,855 per Oz Au and AISC of $2,090 – $2,190 per OZ Au. “The Los Filos team is in a dialogue process with the three communities where the mine is located, with the goal of reaching new land access agreements with each of them in a collaborative and transparent way. These new agreements are necessary to help ensure the long-term economic and investment viability of the mine, including the addition of a new CIL processing plant. If the Company is unable to satisfactorily complete these agreements, the Company will re-evaluate the current operation and may elect to cease operations”.
  • United States Antimony Corp. reported its second quarter 2024 financial and operational results. During the quarter the company completely shut down its operational activities in Mexico. “The historical cash drain of these operations on the Company ceased with this decision”. At the end of the period US Antimony had $12.4 M in cash (Los Juarez, Queretaro).
  • Sierra Metals Inc. reported consolidated financial results to the end of June 2024. During the quarter the sale of the Cusi mine in Chihuahua was completed, for $2.5 M in cash and a 2% NSR. On the period cash cost at Bolivar, in Chihuahua, was $2.76 per Lb CuEq, and AISC $3.53 per Lb CuEq. The company will continue the construction of the new tailings dam at Bolivar, which will allow the increase of production to 7,500 tpd. Guidance at Bolivar in 2024 is 23.9 M to 27.6 M Lb Cu, 650 K to 750 K Oz Ag, 8,000 to 9,200 Oz Au. Sierra Metals had cash and cash equivalents of $22.5 M at the end of June.

ON FINANCING

  • Heliostar Metals Ltd. closed the final tranche of its non-brokered private placement for gross proceeds of $500 K and a total aggregate of gross proceeds of $4.98 M (Ana Paula, Guerrero).

ON RESOURCES AND DEVELOPMENT

  • No Relevant News.

ON DEALS AND CORPORATE ISSUES

  • Golden Minerals Co. announced the retirement of Julie Wiedman, senior vice president and chief financial officer, and the appointment of Joe Dwyer as chief financial officer (CFO) (Yoquivo, Chihuahua).
  • Aura Minerals Inc. announced organizational changes, including some that affect its operations in Mexico. Enrique Rangel, current director of operations at the Aranzazu mine in Zacatecas, takes on the role of director of technical services in corporate, serving all units. Wilton Muricy, current director of operations at Minosa, takes on the role of director of operations at Aranzazu. Francisco do Carmo, current technical services manager at Aranzazu, assumes the role of director of operations at Minosa.
  • GR Silver Mining Ltd. announced the appointment to its board of directors of Mr. Brent McFarlane and Ms. Jessica van den Akker (Plomosas, Sinaloa).
  • Tarachi Gold Corp. signed a non-binding agreement letter of intent (LOI) to acquire all of the outstanding shares of Prospector Portal Inc. in a transaction that would transform Tarachi into an artificial intelligence-focused mining services company. “The LOI contemplates a post-Transaction ownership of Tarachi (“New Tarachi”) that would be approximately 85% held by current Prospector shareholders and 15% held by current Tarachi shareholder” (Tarachi, Sonora).
  • Xali Gold Corp. was advised by the British Columbia Securities Commission of a cease trade order as a result of Xali Gold’s delay in “filing its audited annual financial statements, accompanying management discussion and analysis, and CEO and CFO certifications for the financial year ended March 31, 2024” (El Oro, Estado de Mexico).
  • United States Antimony Corp. announced the appointment of Fred L. “Pete” Bunger as technical advisory director to the board (Juarez, Queretaro).
  • Reyna Silver Corp. entered into an agreement with Reyna Gold Corp. on which Reyna Silver is to acquire all of the issued and outstanding common shares of Reyna Gold (Guigui, Chihuahua; La Gloria, Sonora).
  • Sonoran Desert Copper Corp. amended the option to purchase the Cuatro-Hermanos project in Sonora. Under the revised option a large claim was terminated, with option payments reduced by $200 K and mining concession taxes by $238.6 K in 2024 and $603.6 K in 2025. The property holds NI-43-101 indicated and inferred resources for 643 M tonnes @ 0.19% Cu, 0.02% Mo (Cuatro Hermanos, Sonora).
  • Galore Resources Inc. “announces a status report with regards to the Company’s news release dated July 31, 2024 disclosing the Company’s application for a Management Cease Trade Order (“MCTO”), which was issued by the BC Securities Commission on July 30, 2023” No material change has occurred in the information contained in the default of a financial statement filing requirement. Galore expects to file its yearly financial statements, management discussion and analysis on September 27, 2024 (Dos Santos, Zacatecas).

ON SOCIAL RESPONSIBILITY

  • No Relevant News.

On the image below: Strong chlorite-epidote alteration in intrusive rock in a Sonoran Desert project, HQ core. Picture by Jorge Cirett.

The Mining and Exploration News in Mexico: Highlights on the Second Week of June 2024

/ Gambusino Prospector / Leave a comment

By Jorge Cirett                                             

During the 24th week of the year (June10th to June 16th, 2024), companies working in Mexico posted at least 19 press releases. One company is mobilizing its drilling crew on its property and one other elaborated on its 2024 production guidance for two mines. Four companies announced the opening/closing of financing rounds for C$20.8 M. One company released a PEA on its advanced property, another a multi-year exploration strategy, another one released drilling results from its advanced property and one more released drilling results from its mining areas. Two companies dropped their legal challenges with the Mexican authorities to submit their claims to international arbitration. A company reminded its shareholders to pay attention to the spin out of the royalty company. A company informed on the agreement amendment to repurchase a royalty and the modification of a payment clause on an option purchase agreement. ON MEXICO ISSUES the local stock exchange and the Mx Peso-US Dollar exchange rate took a moderate dip during the week as the current president and incumbent party members commented on the likelihood to pass constitutional reforms aimed to centralize power after the landslide victory obtained in the general elections on June 2, 2024.  The main driver of the run is the intention to reform the Supreme Court with the election of ministers by a popular poll (similar to the current system in Bolivia), which is likely to be capitalized by the majority incumbent party Morena. Mining and exploration companies now have to raise to the reality that they better be well prepared for six more years of a government that does not like businesses in general and mining in particular. ON EXPLORATION, In Sinaloa, Prismo Metals is to mobilize its drilling crew to Palos Verdes. ON MINING, Luca Mining announced its 2024 production guidance for Campo Morado in Guerrero and Tahuehueto in Durango. ON FINANCING, Fortuna Silver closed the convertible senior notes previously announced for US$175 M (really, really unlikely to be invested in Mexico). Barksdale Resources, Prismo Metals, Impact Silver and Heliostar Metals raised a combined C$20.8 M. Quetzal Copper received a cease trade order in BC. ON RESOURCES AND DEVELOPMENT, Southern Silver Exploration released results from a PEA on Cerro Las Minitas, in Durango. Torex Gold presented its multi-year exploration strategy for the Morelos property in Guerrero. Vizsla Silver reported infill drilling results from Panuco, in Sinaloa. First Majestic Silver announced drilling results from San Dimas, in Sinaloa. ON DEALS AND CORPORATE ISSUES, Almadex Minerals and Almaden Minerals withdrew their legal challenges with the Mexican authorities as they took the decision to submit their claims to international arbitration. Vizsla Silver reminded its shareholders on the spinout of Vizsla Royalties. Capitan Silver amended the agreement to repurchase a royalty and also the option agreement on a mining concession at its Cruz de Plata project in Durango. SilverCrest Metals presented results from its AGM. ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUES

  • The local stock exchange and the Mx Peso-US Dollar exchange rate took a moderate dip during the week as the current president and incumbent party members commented on the likelihood to pass constitutional reforms aimed to centralize power after the landslide victory obtained in the general elections on June 2, 2024.  The main driver of the run is the intention to reform the Supreme Court with the election of ministers by a popular poll (similar to the current system in Bolivia), which is likely to be capitalized by the majority incumbent party Morena. Mining and exploration companies now have to raise to the reality that they better be well prepared for six more years of a government that does not like businesses in general and mining in particular

ON EXPLORATION

  • Prismo Metals Inc. intends to mobilize its drilling crew to the Palos Verdes project in Sinaloa. Approximately 3,600 m in ten holes are to be completed in two phases after the closing of the ongoing financing. “These holes will be drilled from Vizsla Silver Corp. (TSXV: VZLA) concessions adjacent to the Palos Verdes concession and will target the Palos Verdes vein at depth.”

ON MINING

  • Luca Mining Corp. announced its 2024 guidance and outlook for the Campo Morado and Tahuehueto mines. At Campo Morado in Guerrero, the company aims to produce 43 K to 50 K Oz AuEq at cash cost $1,175 to $1,294 per Oz AuEq and an AISC of $1,235 to $1,420 per Oz AuEq to obtain $55 M to $65 M in revenue. At Tahuehueto, in Durango, Luca Mining expects to produce 17 K to 20 K Oz AuEq at cash cost $1,295 to $1,420 per Oz AuEq and an AISC of $1,510 to $1,700 per Oz AuEq, to obtain $35 M to $40 M in revenue. At Tahuehueto the company is installing a third filter press that will allow to increase production from 450 tpd to 800 tpd in a short timeframe. At Campo Morado production is ramping back up to 2,000 tpd (from 1,390 tpd in Q1 2024), coupled with the production of three concentrates of copper, zinc and lead, instead of the two currently being produced.

ON FINANCING

  • Fortuna Silver Mines Inc. closed the previously announced offering of 3.75% convertible senior notes due 2029 in an aggregate principal of US$175.5 M, which includes exercise of the full amount of the option to purchase an additional US$22.5 M aggregate principal amount of notes “The initial conversion rate for the Notes is 151.7220 common shares of Fortuna (“Shares”) per US$1,000 principal amount of Notes, equivalent to an initial conversion price of approximately US$6.59 per Share” (San José, Oaxaca).
  • Barksdale Resources Corp. increased the previously announced non-brokered private placement financing for gross proceeds of C$5.62 M. The proceeds are to be used in the exploration activities of Barksdale’s Arizona properties (San Javier, Sonora).
  • Quetzal Copper Corp. has been issued a cease trade order from the British Columbia Securities Commission on June 4, 2024 for failure to file interim financial reports, interim management´s discussion and analysis and certification of interim filings for Q1 2024 (Cristinas, 2024).
  • Prismo Metals Inc. announced that it has received commitments for gross proceeds of C$1.1 M (Palos Verdes, Sinaloa).
  • Capitan Silver Corp. granted 3.94 M options to officers, directors and consultants (Cruz de Plata, Durango).
  • IMPACT Silver Corp. closed the second tranche of the non-brokered private placement financing previously announced for combined gross proceeds of C$9.09 M (Plomosas, Chihuahua).
  • Heliostar Metals Ltd. announced a non-brokered private placement for gross proceeds of up to C$5 M (Ana Paula, Guerrero).

ON RESOURCES AND DEVELOPMENT

  • Southern Silver Exploration Corp. released results from its preliminary economic assessment (PEA) on its Cerro Las Minitas project in Durango. Key features include an after-tax NPV5% of US$501 M and IRR of 21.2% with a 48-month payback, Initial CapEx of $388 M, a large-scale underground operation with a 17-year mine life with LOM feed totalling 243 M Oz AgEq to produce 194 M Oz Ag at an AISC of $13.23 per Oz AgEq. Gross revenues totalling US$4.47 B with Ag and Au representing 45% of revenue and zinc 35%. The project has 13.3 M tonnes @ 102 gpt Ag, 0.07 gpt Au, 0.17% Cu, 1.3% Pb, 3.1% Zn containing 43.2 M Oz Ag, 32 K Oz Au, 49 M Lb Cu, 374 M Lb Pb, 921 M Lb Zn as indicated resources and 23.4 M tonnes @ 111 gpt Ag, 0.14 gpt Au, 0.21% Cu, 1.1% Pb, 2.1% Zn, containing 83.4 M Oz Ag, 104 K Oz Au, 111 M Lb Cu, 582 M Lb Pb, 1,106 M Lb Zn.
  • Torex Gold Resources Inc. presented the multi-year exploration strategy for its Morelos property in Guerrero. The exploration and drilling strategy has the objective to maintain more than 450 K Oz Au annual production and is to focus in three areas: 1) Extending the mine life of ELG Underground and Media Luna 2) Expanding resources within the Media Luna Cluster 3) Advancing targets through the growth pipeline. The $31 M exploration budget for 2024 includes $3 M for regional exploration, including the El Naranjo and Atzcala targets, and plans to explore north of the Balsas River.
  • Vizsla Silver Corp. released results from 12 diamond drill holes targeting the Copala structure at its Panuco project in Sinaloa. Some of the true width intercepts of the infill program comprise 5.00 m @ 22.95 gpt Au, 1,378 gpt Ag (including 2.75 m @ 39.10 gpt Au, 2,225 gpt Ag); 13.00 m @ 8.19 gpt Au, 1,017 gpt Ag (including 1.40 m @ 35.11 gpt Au, 4,124 gpt Ag); 6.00 m @ 10.31 gpt Au, 1,882 gpt Ag; 8.70 m @ 5.18 gpt Au, 1,096 gpt Ag; 12.30 m @ 1.57 gpt Au, 150 gpt Ag. “Resource drilling at Copala has now traced mineralization along ~1,770 metres of strike length and ~400 metres down dip.”
  • First Majestic Silver Corp. announced drilling results from its 2024 exploration program at San Dimas, in Durango. The drill program focus was to test new Au-Ag targets, add mineral resources and convert mineral resources to mineral reserves. Highlighted true length results comprise 2.15 m @ 20.41 gpt Au, 1,702 gpt Ag; 6.08 m @ 1.99 gpt Au, 440 gpt Ag; 6.72 m @ 7.36 gpt Au, 1,129 gpt Ag; 1.28 m @ 11.53 gpt Au, 1,158 gpt Ag; 7.88 m @ 10.87 gpt Au, 1,034 gpt Ag; 1.01 m @ 12.34 gpt Au, 196 gpt Ag; 1.76 m @ 39.28 gpt Au, 1,905 gpt Ag; 2.18 m @ 4.86 gpt Au, 511 gpt Ag; 1.34 m @ 9.44 gpt Au, 1,069 gpt Ag; 0.94 m @ 13.24 gpt Au, 1,501 gpt Ag; 2.05 m @ 3.42 gpt Au, 361 gpt Ag.

ON DEALS AND CORPORATE ISSUES

  • Almadex Minerals Ltd. has taken the decision to submit its claims to arbitration against Mexico under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, after a consultation meeting with Mexican officials on May 30, 2024 did not result in an amicable resolution of the dispute with Mexico. Almadex is pursuing this arbitration together with Almaden Minerals Ltd., and based on a preliminary estimate will be seeking damages of no less than US$200 million. Almadex would be entitled to damages relating to its 2.0% NSR royalty on the Ixtaca project in Puebla.
  • Almaden Minerals Ltd. has taken the decision to submit its claims to arbitration against Mexico under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, after a consultation meeting with Mexican officials on May 30, 2024 did not result in an amicable resolution of the dispute with Mexico. Almaden has withdrawn its legal challenge in the Mexican Federal Administrative Court and other legal proceedings in respect of the company’s mining concessions, as required for submitting a claim under the CPTPP. The ruling on the arbitration under the CPTPP will be adjudicated pursuant to the arbitration rules of the International Centre for Settlement of Investment Disputes (ICSID). Almaden is pursuing this arbitration together with Almadex Minerals Ltd., and based on a preliminary estimate will be seeking damages of no less than US$200 million, in the aggregate (Ixtaca, Puebla).
  • Vizsla Silver Corp. reminds its shareholders that if the spinout of Vizsla Royalties Corp. is approved at the special meeting being held on June 17, 2024, the company will seek a final order from the Supreme Court of British Columbia to approve the arrangement and closing will occur on or about June 24, 2024. “The owners of common shares of Vizsla Silver … are entitled to receive one-third of a common share of Vizsla Royalties Corp. …. and one-third of a common share purchase warrant of Vizsla Royalties Corp.” for each Vizsla Silver Share held on the record date (Panuco, Sinaloa).
  • Capitan Silver Corp. amended its agreement to repurchase a royalty on its Cruz de Plata project in Durango. The net smelter royalty (NSR) entitled Exploraciones del Altiplano an NSR of up to 2%. “The amendments have restructured the final payments to Altiplano which totaled USD $1.0 million into three smaller payments over the course of a year. Upon signing of the amendment a cash payment of USD $87,500 was made, with remaining payments to consist of 50% cash and 50% shares as follows: USD $200,000 in October 2024 and USD $300,000 in April 2025.” Amended was also the option agreement to purchase the “El Casco U” property from Fresnillo plc, modifying the November 2023 US$150 K payment to a US$156.3 K payment on May 2024, which has since been paid.
  • SilverCrest Metals Inc. announced results from its annual general meeting (AGM) held on June 12, 2024. Eight directors were re-elected by a handsome majority on the meeting where “A total of 88,115,662 votes were represented at the AGM amounting to 59.84% of the issued common shares…”  

ON SOCIAL RESPONSIBILITY

  • No Relevant News.

On the image below: Saw scratched molybdenite speck image on a 40 X hand lens from a project in the Sonoran Desert. Picture by Jorge Cirett