cease trade order

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

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Potassic-altered hydrothermal alteration

By Miguel A Heredia

During the 33th week of the year (August 12th to August 18th 2024), at least 25 press releases were announced by companies working in Mexico, with ten communicating production and financial results, six disclosing deals and corporate issues, four reporting resources and development of their properties, three announcing financing rounds, one informing on exploration results, and one commenting on Mexican issues.   ON MEXICO ISSUES, Kootenay Silver Tiger, and Silver Storm reported the best drilling intercepts in Mexico on the third week of August, 2024. ON EXPLORATION, In Chihuahua, Kootenay released the latest results from drilling at its Columba project.  ON MINING, AvinoSilver & Gold presented its consolidated financial results for Q2, 2024 (Avino and La Preciosa mines, Durango). Endeavour Silver reported the trunnion on the primary ball mill at the Guanacevi mill in Durango has failed and could take up to 12 weeks to be repaired. Santacruz reported financial and operating results for Q2, 2024 (Zimapan mine, Hidalgo). Orla announced Q2, 2024 results for its Camino Rojo mine in Zacatecas.  Gold Royalty reported Q2, 2024 results (Cozamin mine, Zacatecas). Golden Minerals presented Q2, 2024 financial results (Velardeña property, Durango). Discovery Silver reported Q2, 2024 financial results (Cordero project, Chihuahua). Osisko announced that its San Antonio project in Sonora remains in care and maintenance, with no production anticipated. Elemental Altus announced that it will release its Q2, 2024 results on August 19, 2024 (Mercedes mine, Sonora). Prime reported consolidated financial statement for the six months ended June 30, 2024 (Los Reyes project, Sinaloa).  ON FINANCING, Americas Gold and Silver signed a credit and off-take agreement with Trafigura to develop the 120 Zone and El Cajon Ag-Cu project (EC120) at its Cosala mine operations in Sinaloa. Southern Silver closed the second tranche of its previously announced non-brokered private placement for gross proceeds of $1,300,350 (Cerro Las Minitas, Durango). Prismo entered into a debt settlement agreement with a creditor of the company for the amount of $30,600 (Palos Verdes, Sinaloa). ON RESOURCES AND DEVELOPMENT, Tocvan and its JV partner Colibri Resource provided an update from its Pilar project in Sonora. Silver Tiger reported results from its Pre-Feasibility Study drilling program at its El Tigre project in Sonora. Silver Storm released drill results from its phase 2 diamond drilling program at its Parrilla mine in Durango.  ON DEALS AND CORPORATE ISSUES, GR Silver granted a total of 600K stock options to eligible persons in accordance with the Omnibus Long-Term Incentive Plan (Plomosas project, Sinaloa). Impact Silver appointed a new member to its Board of Directors (Zacualpan Mining District, Mexico).  Luca mining granted an aggregate of 4,508,833 incentive stock options, and 800,000 restricted share units to certain officers, and directors, and announced that it reached an agreement with Empress Royalty Corp., (Tahuehueto mine, Durango). Silver Storm provided a bi-weekly update on the status of its management cease trade order issued on July 30, 2024 by the British Columbia Securities Commission (La Parrilla mine, Durango).  Goldgroup has entered into an agreement to acquire a loan facility from a group of creditors, which will allow the company to take full ownership of Minera Apolo, S.A. de C.V.  Candelaria received a notice from Goldgroup regarding events of default under the medium-term loan facility dated June 24, 2020 (Pinos project, Zacatecas).  ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUES

  • Kootenay Silver Inc., Silver Tiger Metals Inc., and Silver Storm Mining Ltd., reported the best drilling intercepts in Mexico on the third week of August, 2024. Details are shown in the table below:

ON EXPLORATION

  • Kootenay Silver Inc., released the latest results from drilling at its Columba project in Chihuahua. These results represents continued exploration along the “D-Vein” and includes the longest zone of consistent silver mineralization yet found on the Columba project. Drilling highlights (true widths reported) include holes CDH-24-164 with 211 g/t Ag, 0.1% Pb, and 0.4% Zn over 49.75m, including 358 g/t Ag, 0.2% Pb, and 0.5% Zn over 19m, including 531 g/t Ag, 0.1% Pb, and 0.2% Zn over 6m, including 826 g/t Ag, 0.1% Pb, and 0.2% Zn over 0.50m, and a subinterval of 318 g/t Ag, 0.2% Pbv, and 0.7% Zn over 11.02m, including 980 g/t Ag, 1.3% Pb, and 3.3% Zn over 0.20m, and 266 g/t Ag, 0.1% Pb, and 0.3% Zn over 2.75m; hole CDH-24-163 with 84 g/t Ag, 0.0% Pb, and 0.1% Zn over 12.67m, including 155 g/t Ag, 0.1% Pb, and 0.1% Zn over 4.07m; hole CDH-24-156 with 127 g/t Ag, 0.1% Pb, and 0.1% Zn over 5.6m, including 419 g/t Ag, 0.5% Pb, and 0.3% Zn over 0.39m; hole CDH-24-160 with 78 g/t Ag, 0.0% Pb, and 0.2% Zn over 6.74m, plus 123 g/t Ag, 0.0% Pb, and 0.1% Zn over 0.61m, plus 162 g/t Ag, 0.2% Pb, and 1.4% Zn over 0.92m; and hole CDH-24-161 with 126 g/t Ag, 0.0% Pb, and 0.1% Zn over 2.97m, including 287 g/t Ag, 0.0% Pb, and 0.3% Zn over 0.50m, plus 81 g/t Ag, 0.0% Pb, and 0.1% Zn over 7.60m, including 221 g/t Ag, 0.0% Pb, and 0.2% Zn over 0.50m, plus 337 g/t Ag, 0.1% Pb, and 0.3% Zn over 2.07m, including 1,595 g/t Ag, 0.7% Pb, and 0.6% Zn over 0.33m. “The ongoing 2024 program comprises 5,153m in 17 holes and has more than doubled the known strike length of D Vein, one of several high priority targets at Columba boasting some of the most striking results on the project to date. The current program is part of a fully funded follow up program of 20,000m, aimed to delineate a maiden resource expected in late 2024”.

ON MINING

  • Avino Silver & Gold Mines Ltd., presented its consolidated financial results for Q2, 2024. The company milled 140,934 tonnes to produce 292.9K Oz Ag, 1,514 Oz Au, and 1.3M Lb Cu (616.6K Oz AgEq). It sold 537K Oz AgEq at cash and AISC of $16.29 and $22.74 per Oz AgEq. Avino also reported revenues of $14.8M; gross profit (mine operating income) of $4.7M, $5.9M net of non-cash costs of sales; net income of $1.2M, or $0.01 per share; adjusted earnings of $4.3M, or $0.03 per share; and EBIDTA of $3.4M (Avino and La Preciosa mines, Durango).
  • Endeavour Silver Corp., reported the trunnion on the primary ball mill at the Guanacevi mill in Durango has failed and could take up to 12 weeks to be repaired. “As a result, processing of material at the Guanacevi mill has been suspended. Management is assessing several alternatives including operating at a significantly reduced capacity with minor conveyor modification using smaller regrind mills until the primary ball mill is operational”.
  • Santacruz Silver Mining Ltd., reported financial and operating results for Q2, 2024 for its Zimapan mine in Hidalgo.  The company milled 209,735 tonnes with grades of 80 g/t Ag, 2.5% Zn, 0.7% Pb, and 0.3% Cu with metallurgical recoveries of 76%, 80%, 86%, and 45% respectively, to produce 409.3K Oz Ag, 9.2M Lb Zn, 2.94M Lb Pb, and 636.2K Lb Cu (1.08M Oz AgEq). Santacruz reported that it sold 857.7K Oz AgEq.
  • Gold Royalty Corp., reported Q2, 2024 results It holds 1% NSR over portion of the Cozamin mine in Zacatecas owned by Capstone Copper Corporation. Capstone informed that Q2, 2024 production at Cozamin was 7% lower than the Q2, 2023 due to lower mill throughput driven by mine sequencing. Grades and recoveries were consistent with the same period last year.
  • Orla Mining Ltd., announced Q2, 2024 results for its Camino Rojo mine in Zacatecas (all amounts expresses in US dollars). The company produced 33,206 Oz Au and sold 34,875 Oz Au at an average price of $2,332 per Oz Au. Cash and AISC were $498 and $782 per Oz Au sold respectively. It also reported revenue of $84.6M; net income of $24.3M; adjusted earnings of $23M; earnings per share of $0.08, and adjusted earnings per share of $0.07; cash flow from operating activities before changes in non-cash working capital of $53.2M; free cash flow of $44.1M; cash and cash equivalents of $154.3M; and a net cash of $76M. The company increased its full year Au production guidance to 120K-130K Oz Au from its initial guidance of 110K-120K Oz Au, and improved its AISC guidance for the full year to a range of $800-900 per Oz Au from the original guidance of $875-975 per Oz Au.
  • Golden Minerals Company presented Q2, 2024 financial results (figures are in approximate US dollars). The company reported cash and cash equivalents of 1.4M; current liabilities of $4.8M; zero debt; and net loss of $2.7M or $0.19 per share (Velardeña property, Durango).
  • Discovery Silver Corp., reported Q2, 2024 financial results. The company reported a net loss of $7.03M; basic and diluted per share of ($0.02); total comprehensive loss of $8.6M; cash and cash equivalents of $37.05M; total assets of $131.8M; total current liabilities of $5.8M; working capital of $35.85M; and total shareholders´ equity of $124.55M  (Cordero project, Chihuahua).
  • Osisko Development Corp., announced that its San Antonio project in Sonora remains in care and maintenance, with no production anticipated while it awaits next steps from the government of Mexico with respect to the permitting process and the status of open pit mining in the country. Osisko is also conducting a strategic review of the project including exploring the potential for a financial or strategic partner in the asset or for a full or partial sale of the asset.
  • Elemental Altus Royalties Corp., announced that it will release its Q2, 2024 results on August 19, 2024 (Mercedes mine, Sonora).
  • Prime Mining Corp., reported consolidated financial statement for the six months ended June 30, 2024. The company reported loss and comprehensive loss of $11.9M; loss per share of $0.08; cash of $24.5M; total assets of $38.6M; current liabilities of $943K; total liabilities of $1.78M; and shareholders´ equity of $36.8M (Los Reyes project, Sinaloa).

ON FINANCING

  • Americas Gold and Silver Corporation signed a credit and off-take agreement with Trafigura PTE Ltd., to develop the 120 Zone and El Cajon Ag-Cu project (EC120) at its Cosala mine operations in Sinaloa. It provides the company with a secured credit facility of up to USD $15M to complete the pre-production development of the EC120 project at its Cosala operations to begin producing high-grade silver-copper concentrate in Q3, 2025. Americas Gold and Silver expects to draw only USD $10M on the credit facility initially subject to standard closing conditions.
  • Southern Silver Exploration Corp., closed the second tranche of its previously announced non-brokered private placement for gross proceeds of $1,300,350 by issuing 5,911,500 units at a price of $0.22 per unit. Gross proceeds will be used for the continued development of its Cerro Las Minitas project in Durango, and for working capital. “Specifically, the Company plans to initiate a program of resource expansion of up to 6,000m of drilling in 11 holes to test shallow targets along the north side of the Cerro between the North Felsite and Skarn Front deposits. Drilling will start in early September”.
  • Prismo Metals Inc., entered into a debt settlement agreement with a creditor of the company. The company has agreed to issue to the creditor, and the creditor has agreed to accept 180,000 common shares of the company at a deemed issue price of $0.17 per share in full and final settlement of accrued and outstanding indebtedness in the amount of $30,600 (Palos Verdes project, Sinaloa).

ON RESOURCES AND DEVELOPMENT

  • Tocvan Ventures Corp., and its JV partner Colibri Resource Corporation are preparing for the next phases of drilling at its Pilar project in Sonora. The upcoming core and RC drilling to define resources and build a robust geological model is expected to commence in September 2024. The plan is to drill between 1,200m-2,000m of core and 1,700m-2,500m of RC, focused on the Main Zone and adjacent trends. In addition, Tocvan is evaluating a pilot mine facility to process up to 50K tonnes of material on-site, with the objective of advancing towards production by early 2025, capitalizing on favorable market conditions for gold and silver.
  • 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-24-617 with 0.34 g/t Au and 75 g/t Ag (1.34 g/t AuEq or 101 g/t AgEq) over 96.3m, including  0.34 g/t Au and 113 g/t Ag (1.84 g/t AuEq or 138 g/t AgEq) over 11m,  (Stockwork Zone), and including 1.96 g/t Au and 4,747 g/t Ag (65.25 g/t AuEq or 4894 g/t AgEq) over 1.2m (Keel Zone); hole ET-24-615 with 1.9 g/t Au and 122 g/t Ag (3.53 g/t AuEq or 264 g/t AgEq) over 18.4m (Stockwork Zone), plus 0.61 g/t Au and 57 g/t Ag (1.37 g/t AuEq or 102 g/t AgEq) over 4.4m, plus 0.4 g/t Au and 35 g/t Ag (0.86 g/t AuEq or 65 g/t AgEq) over 21.9m, plus 0.22 g/t Au and 18 g/t Ag (0.46 g/t AuEq or 35 g/t AgEq) over 22.2m, plus 0.29 g/t Au and 22 g/t Ag (0.58 g/t AuEq or 44 g/t AgEq) over 6m; hole ET-24-616 with 0.14 g/t Au and 128 g/t Ag (1.85 g/t AuEq or 139 g/t AgEq) over 31.9m  (Stockwork Zone), including 0.27 g/t Au and 399 g/t Ag (5.6 g/t AuEq or 420 g/t AgEq) over 9.3m, including 1.07 g/t Au and 2,698 g/t Ag (37.04 g/t AgEq or 2,778 g/t AgEq) over 1.3m; and hole ET-24-619 with 0.39 g/t Au and 51 g/t Ag (1.06 g/t AuEq or 80 g/t AgEq) over 24.7m (Stockwork Zone), plus 0.31 g/t Au and 7 g/t Ag (0.41 g/t AuEq or 31 g/t AgEq) over 18.9m. To date, 151 holes for the PFS have been drilled at El Tigre and results are highlighting the high-grade nature of the Keel Zone while expanding near- surface mineralization footprint 700m from the Starter Pit.
  • Silver Storm Mining Ltd., released drill results from 14 holes (2,327m) from its phase 2 diamond drilling program collared at the Rosarios and San Carlos Zones, within the Rosario mine at its Parrilla mine complex in Durango. Drilling highlights include holes RO-24-028 with 116 g/t Ag, 0.02 g/t Au, 3.2% Pb, 0.02% Zn, and 0.02% Cu (204 g/t AgEq) over 0.40m, plus 646 g/t Ag, 0.23 g/t Au, 4.8% Pb, 3.4% Zn, and 0.27% Cu (887 g/t AgEq) over 2.54m, including 977 g/t Ag, 0.2 g/t Au, 7.2% Pb, 4.4% Zn, and 0.37% Cu (1,306 g/t AgEq) over 1.60m; hole RO-24-032A with 86 g/t Ag, 0.01 g/t Au, 2.9% Pb, 1.1% Zn, and 0.02% Cu (197 g/t AgEq) over 1m, plus 66 g/t Ag, 0.05 g/t Au, 1.5% Pb, 1.7% Zn, and 0.12% Cu (158 g/t AgEq) over 0.5m, plus 56 g/t Ag, 0.11 g/t Au, 1.4% Pb, 4.5% Zn, and 0.01% Cu (223 g/t AgEq) over 1.0m, plus 149 g/t Ag, 0.26 g/t Au, 2.1% Pb, 2.8% Zn, and 0.08% Cu (305 g/t AgEq) over 5.60m, including 372 g/t Ag, 0.29 g/t Au, 4.3% Pb, 8% Zn, and 0.19% Cu (931 g/t AgEq) over 1.40m, including 187 g/t Ag, 0.15 g/t Au, 6.6% Pb, 4.9% Zn, and 0.2% Cu (510 g/t AgEq) over 0.5m, plus 89 g/t Ag, 0.1 g/t Au, 1.4% Pb, 1.3% Zn, and 0.16% Cu (170 g/t AgEq) over 0.4m; hole RO-24-034 with 163 g/t Ag, 0.01 g/t Au, 4% Pb, 0.2% Zn, and 0.03% Cu (278 g/t AgEq) over 0.51m, plus 138 g/t Ag, 0.01 g/t Au, 4% Pb, 1.2% Zn, and 0.08% Cu (280 g/t AgEq) over 0.53m, plus 106 g/t Ag, 0.07% Au, 3% Pb, 1.5% Zn, and 0.04% Cu (234 g/t AgEq) over 4.24m, including 183 g/t Ag, 0.06 g/t Au, 4.7% Pb, 2.4% Pb, and 0.07% Cu (350 g/t AgEq) over 1.06m, including 230 g/t Ag, 0.04 g/t Au, 6.3% Pb, 2.6% Zn, and 0.03% Cu (475 g/t AgEq) over 0.4m, including 256 g/t Ag, 0.28 g/t Au, 7.5% Pb, 5% Zn, and 0.08% Cu (617 g/t AgEq) over 0.42m, plus 83 g/t Ag, 0.02 g/t Au, 2.5% Pb, 2.9% Zn, and 0.04% Cu (232 g/t AgEq) over 2m, including 165 g/t Ag, 0.04 g/t Au, 4.9% Pb, 3.6% Zn, and 0.07% Cu (396 g/t AgEq) over 0.40m, including 180 g/t Ag, 0.02 g/t Au, 5.4% Pb, 9.8% Zn, and 0.1% Cu (592 g/t AgEq) over 0.40m, plus 373 g/t Ag, 0.05 g/t Au, 12.2% Pb, 14% Zn, and 0.26% Cu (1,085 g/t AgEq) over 0.5m; and hole RO-24-026 with 166 g/t Ag, 0.1 g/t Au, 0.2% Pb, 0.1% Zn, and 0.06% Cu (184 g/t AgEq) over 0.55m, plus 145 g/t Ag, 0.18 g/t Au, 2.2% Pb, 2.1% Zn, and 0.03% Cu (276 g/t AgEq) over 5.46m, including 314 g/t Ag, 0.38 g/t Au, 1.9% Pb, 0.9% Zn, and 0.03% Cu (421 g/t AgEq) over 1.13m, including 149 g/t Ag, 0.06 g/t Au, 3.4% Pb, 2.6% Zn, and 0.04% Cu (316 g/t AgEq) over 1.72m. These drill results are expected to have a positive impact on future Mineral Resources.

ON DEALS AND CORPORATE ISSUES

  • GR Silver Mining Ltd., granted a total of 600K stock options to eligible persons in accordance with the Omnibus Long-Term Incentive Plan. The options, with a five-year term and exercisable at a price of $0.16 per common share, shall vest as to 1/3 on the date of grant and an additional 1/3 on each of August 12, 2025 and August 12, 2026. (Plomosas project, Sinaloa).
  • Impact Silver Corp., appointed a new member to its Board of Directors, effective August 7, 2024  (Zacualpan Mining District, Mexico).
  • Luca mining Corp., granted an aggregate of 4,508,833 incentive stock options, and 800,000 restricted share units to certain officers, and directors. The options are exercisable at a price of $0.55 and will expire five years from the date of their issuance. The company also announced that it reached an agreement with Empress Royalty Corp. to amend the metal purchase and sale agreement entered into between the company and Empress Royalty on April 14, 2021 and subsequently amended on May 1, 2023  (Tahuehueto mine, Durango).
  • Silver Storm Mining Ltd., provided a bi-weekly update on the status of its management cease trade order issued on July 30, 2024 by the British Columbia Securities Commission. The company is currently finalizing its annual financial statements, which were due on July 29, 2024, but faced delays due to complexities related to the acquisition of the La Parrilla assets in Durango. Silver Storm expects to file the necessary documents by August 28, 2024, and does not anticipate further delays for subsequent filings due by August 29, 2024.
  • Goldgroup Mining Inc., has entered into an agreement to acquire a loan facility from a group of creditors, which will allow the company to take full ownership of Minera Apolo, S.A. de C.V. and its Pinos Project, a fully permitted gold project in Zacatecas. The acquisition involves issuing 50M common shares, a cash payment of USD $0.5M within 18 months, and contingent payments of USD $1.5M based on certain criteria. The completion of this transaction is subject to necessary approvals, including from the TSX Venture Exchange
  • Candelaria Mining Corp., announced on August 16, 2024, that it received a notice of default from Goldgroup Mining, Inc. regarding a medium-term loan facility dated June 24, 2020. The notice indicates breaches related to repayment and information declaration, allowing Goldgroup to request early termination of the loan. Candelaria has ten business days to comply with the obligations outlined in the loan agreement.

ON SOCIAL RESPONSIBILITY

  • No relevant news.

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

On the picture above, veins displaying potassic-altered hydrothermal alteration in a porphyry copper project in Tamaulipas, Mexico. Photo taken by Miguel A Heredia.

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