The Mining and Exploration News in Mexico: Highlights on the Third Week of July, 2020.

 

Argillic alteration

By Miguel A Heredia

During the twenty nine week of the year (July 13th to July 19th, 2020), at least 47 press releases were announced by companies working in Mexico, with ten communicating production and financial results, nine commenting on Mexican issues, eight announcing financial rounds, seven informing on exploration results, five disclosing deals and corporate issues, four reporting on resources and developments, and four discussing on social issues. ON MEXICO ISSUES, Claudia Pavlovich and Hector Astudillo, governors of Sonora and Guerrero respectively, asked the Ministry of Economy to reconsider returning to the support that was granted to the municipalities with the Mining Fund. Jose Ignacio Peralta Sanchez, governor of Colima state requested the reactivation of The Mining Fund. Karen Flores, Director of the Mexican Mining Chamber (CAMIMEX), stated that 16% of the workforce in the Mexican mining industry is occupied by women. The Secretary of Economic Development of Michoacan, Jesus Melgoza Velazquez, announced that the regional committee of the Mining Fund for the Development of Mining Areas was reactivated after approximately two years.  Fernando Alanis, president of the Mexican Mining Chamber (CAMIMEX) declared that the mining sector in the country is at risk of contracting if new concessions are not granted.  Torex Gold plans additional investment of USD $ 500M in Mexico but asked the government for certainty. The Ministry of Labor and Social Security (STPS) reported that it is in preparation for the next stage of the rescue of the miners who were trapped in the Pasta de Conchos mine in Coahuila 14 years ago. The Zacatecas Mining Cluster (Clusmin) and its members started the construction of the Compatible Mining Center in Zacatecas. Minera Esperanza Silver (Alamos Gold Inc.) reaffirmed its commitment with Mexico. ON EXPLORATION, In Sonora, Colibri concluded its current phase of field work at its Evelyn project and planed the next phase trenching program, Ridgestone reported drill results from the three first holes collared at its Rebeico project, Minaurum commenced phase II drilling at its Alamos Silver project, and Silver Viper reported results from four holes drilled at its La Virginia project. In Chihuahua, Kootenay released drill results from its Columba project, and Consolidated Zinc provided an exploration update on its Potrero and Don Lucas prospects.  In Sinaloa, Vizsla expanded the exploration program at its Panuco project and added a third drill rig.  ON MINING, Aura, Avino, Consolidated Zinc, First Majestic, Fortuna, GoGold, Gold Resource, McEwen, Santacruz and Sierra Metals reported Q2, 2020 production results from their Mexican operations. ON FINANCING, Aztec Minerals closed the first tranche of its private placement for gross proceeds of CAD $2.12M (Cervantes project, Sonora). Silver Tiger announced a plan to conduct a non-brokered private placement for gross proceeds of up to $11M (El Tigre project, Sonora). Tarachi Gold announced it intends to complete a non-brokered private placement for net proceed of up to CAD $5M (Tarachi project, Sonora).  Xtierra closed its previously announced private placement for gross proceeds of $1M (Bilbao project, Zacatecas). Mammoth announced lifting of management cease trade order and issuance of shares for debt and incentive options (Tenoriba project, Chihuahua). Mexus announced that the company satisfied a $57K note payable by way of conversion (Santa Elena mine, Sonora). Telson announced that further to its application for a management cease trade order, which was granted by the British Columbia Securities Commission, it has been required to provide bi-weekly status reports (Tahuehueto project, Durango). One World Lithium announced that it will continue providing bi-weekly updates following a management cease trader order granted for the British Columbia Securities Commission (Salar del Diablo project, Baja California Norte). ON RESOURCES AND DEVELOPMENT, Endeavour announced a final PFS on its Terronera mine in Jalisco. GR Silver resumed the surface drilling at its Plomosas project in Sinaloa.  Prime Mining provided an update regarding the initial phase of exploration planned on its Los Reyes project in Sinaloa. Minera Alamos provided mid-year construction update at its Santana project in Sonora.  ON DEALS AND CORPORATE ISSUES, Carlyle entered in an option agreement with Riverside to purchase 100% interest in the Cecilia project in Sonora.  Golden Minerals signed a letter of intent with Fabled Copper to sell its Santa Maria project in Chihuahua. Minera Alamos announced the appointment of a new member to its board of directors (Santana project, Sonora). Oroco announced the appointment of a director to join to its board of directors (Santo Tomas project, Sinaloa). ON SOCIAL RESPONSIBILITY, Fresnillo plc continues to implement sanitary measures in its work centers and support the communities surrounding the operations. Grupo Peñoles supported the donation of bed-chairs for Coahuila hospitals. MSX (New Gold Inc.) donated pantries to vulnerable population in the communities of Cerro de San Pedro, San Luis Potosi, as well as personal protection equipment to hospitals. Camino Rojo S.A. de C.V. (Orla Mining Ltd.) continued helping communities and government agencies where it operates to mitigate the risk of the COVID-19 pandemic.

 ON MEXICO ISSUES

  • Claudia Pavlovich and Hector Astudillo, governors of Sonora and Guerrero respectively, asked the Ministry of Economy to reconsider returning to the support that was granted to the municipalities with the Mining Fund. The governor of Guerrero said that the Mining Fund can be used to reactivate the economy in the most affected regions by the unemployment of the industry due to the COVID-19 pandemic, as well as to attend to the population affected by the virus, as well as for medical care and medicines. The governor of Sonora said that this support marked a before and after in the municipalities where the resources were applied, and stated that the Mining Fund should be reconsidered to promote the development of the municipalities. In addition, governors of Coahuila, Durango and Chihuahua highlighted the importance of mining activity in their states.
  • José Ignacio Peralta Sanchez, governor of Colima state asked the Undersecretary of Mining, Francisco Jose Quiroga Fernandez, to resume Mining Funds pending from some years ago, since due to the current economic conditions is when this resource is most required. The governor stressed that mining is an engine for the entity’s economy, since it has important productive chains, which makes it a strategic sector.
  • Karen Flores, Director of the Mexican Mining Chamber (CAMIMEX), stated that 16% of the workforce in the Mexican mining industry is occupied by women. She argued that although it seems a minority figure, its increase has been exponential. She also commented that Mexican mining adheres to the agreements of the 2030 agenda of the United Nations (UN) in two of its main objectives, such as the reduction of inequality and gender equity.
  • The Secretary of Economic Development of Michoacan, Jesus Melgoza Velazquez, announced that the regional committee of the Mining Fund for the Development of Mining Areas was reactivated after approximately two years. The Mining Fund will allow physical infrastructure works to be carried out in municipalities with mining activity such as Tlalpujahua, Tzitzio, Tuzantla, Huetamo, Villa Madero, La Huacana, Arteaga, Coalcoman, Aquila and Lazaro Cardenas. Since the creation of the regional committee of the mining fund in 2014, MXP $171M have been earmarked for the realization of 61 projects such as paving works for streets and roads, construction of sanitary landfills, infrastructure for the drinking water service, sewerage and water treatment plants, placement of LED street lights, construction of classrooms, roofs and civic patios in schools.
  • Fernando Alanis, president of the Mexican Mining Chamber (CAMIMEX), declared that the mining sector in the country is at risk of contracting if new concessions are not granted. Alanis recalled the importance of mining activity, in order to continue the 370,000 direct jobs and 2-3 millions of indirect jobs generated by this sector, in addition to the fact that for each hectare concessioned under active exploitation, it has a spill of MXP $22,829M. He also said that between 2016 and 2019 the sector paid MXP $174,500M for taxes.
  • Jody Kuzenko, President & CEO of Torex Gold Resources Inc., declared that it plans additional investments of USD $ 500M in Mexico in the construction and commissioning of its Media Luna project in Guerrero but asked the government for certainty in key areas such as in the rule of law and in economic policies to keep its investment projects.
  • The Ministry of Labor and Social Security (STPS), reported that it is in preparation for the next stage of the rescue of the remains of the 65 miners who were trapped in the Pasta de Conchos mine in Coahuila 14 years ago.
  • The Zacatecas Mining Cluster (Clusmin) and its members, started the construction of the Compatible Mining Center in Zacatecas, which is expected to take a year. The Compatible Mining Center aims to promote the development of science, the use of the latest technology and promote innovation for the development of specific purpose applications in the mining environment in the areas of occupational health, physical and psychological safety of workers, and protection of the environment in mining operations in the state of Zacatecas.
  • Minera Esperanza Silver (Alamos Gold Inc.), reaffirmed its commitment with Mexico and highlighted the enormous opportunity for Morelos to be part of the mining sector and the national extractive industry, which is equivalent to 8.3% of industrial GDP. The spokesperson for the Esperanza Silver mining company in Mexico, responsible for the Esperanza project, located in the municipality of Temixco stated that Temixco is shaping up to be one of the mining municipalities in Mexico, where well-being and possibilities for economic and social development are imminent and we must prepare for it.

ON EXPLORATION

  • Colibri Resource Corporation, concluded the current phase of field work and released mapping and sampling results from its Evelyn project in Sonora. A total of 40 grab samples were collected, 9 of which returned grades greater than 0.1 g/t Au, including 4 running more than 1 g/t Au, with a peak value of 8.4 g/t Au at the Cerro Rojo target area. The high-grade samples all consist of quartz vein, veinlets, and quartz breccia with oxidized pyrite and goethite. Colibri plans the next phase on trenching at its Evelyn project.
  • Ridgestone Mining Inc., reported drill results from the three first holes collared at its Rebeico project in Sonora. 1,674m were completed on the New Year Zone to investigate the subsurface extent of significant gold and copper mineralization previously sampled on surface. Significant drill intersections were encountered in hole 20REB013D with 2.13 g/t Au and 1.79% Cu over a width of 16.25m, including 5.25 g/t Au and 1.46% Cu over a width of 4.35m. Holes 20REB014D and 20REB015D intersected 0.25% Cu and 0.19%Cu over a width of 16.2m and 10.9m respectively.
  • Minaurum Gold Inc., commenced phase II drilling program at its Alamos Silver project in Sonora with a minimum of 20,000m. This phase will involve systematically stepping out from discoveries made during Phase I drilling beginning with two drill rigs. “One drill will offset the Europa-Guadalupe discovery hole (AL17-007) which returned 8.25 m grading 1,760 g/t Ag. The other drill will test targets at Promontorio, both along the vein trend and beneath the Promontorio mine where recently acquired historical data revealed holes that returned up to 12.2 m grading 710 g/t Ag”.
  • Silver Viper Minerals Corp., reported results from four new drill holes at La Virginia, two from the El Rubi discovery area and two from the exploration prospect, Macho Libre. Significant drill intersections were encountered in hole LV20-234 collared at El Rubi with 2.05 g/t Au and 11 g/t Ag over a true width (TW) of 4.26m, including 3.59 g/t Au and 16 g(/t Ag over a TW of 1.18m; hole LV20-231M drilled at Macho Libre with 0.63 g/t Au and 24 g/t Ag over a TW of 11.76m, including 1.07 g/t Au and 54 g/t Ag over a TW of 3.60m; and hole LV20-233M drilled at Macho Libre with 1.41 g/t Au and 26 g/t Ag over a TW of 0.90m. Drilling at the El Rubi Discovery Zone continues to expand the system and the rig is being mobilized to a second exploration target named Rubi East.
  • Kootenay Silver Inc., released results from five drill holes collared at its Columba project in Chihuahua. These holes are step outs along strike and to depth from high-grade intercepts previously reported in the Phase-II drill campaign. Significant drill intersections were encountered in hole CDH-20-052 with 199 g/t Ag, 0.08% Pb, and 0.27% Zn over 7.53m, including 279 g/t Ag, 0.11% Pb, and 0.38% Zn over 4.08m, and including 601 g/t Ag, 0.03% Pb, and 0.12% Zn over 1.23m within the F Vein; hole CDH-20-053 with 116 g/t Ag, 0.11% Pb, and 0.24% Zn over 34m, including 175 g/t Ag, 0.17% Pb, 0.37% Zn over 11m, including 496 g/t Ag, 0.55% Pb, and 0.91% Zn over 3m, including 620 g/t Ag, 0.35% Pb, 0.9% Zn over 2m, including 753 g/t Ag, 0.38% Pb, and 1% Zn over 0.95m in F Vein and Hanging Wall structure; and hole CDH-20-054 with 158 g/t Ag, 0.4% Pb, and 0.35% Zn over 5m, including 319 g/t Ag, 0.18% Pb, and 0.5% Zn over 1.8m in F Vein.
  • Consolidated Zinc Limited, provided an exploration update on its Potrero and Don Lucas prospects in Chihuahua and has reserved $600K for exploration field work this year. The company has continued its Au exploration with desktop studies which has established targets and defined a scope of work for immediate commencement of field mapping, sampling and drilling in the current field season.
  • Vizsla Resources Corp., expanded the exploration program at its Panuco project from 14,500m of drilling to 31,100m and added a third rig, which has already commenced to drill. In addition, a fourth drill rig is expected to arrive at the beginning of August. “Third and fourth drill rigs will test exploration targets including the strike extensions of the Napoleon vein corridor, the Tajitos vein, the San Carlos mine at Animas and additional targets along the Cordon del Oro vein corridor”. Drilling is continuing at the high-grade Napoleon discovery with drill hole NP-20-14 in progress. Drilling is testing to the south and down dip of the discovery hole NP-20-02 before moving back north to test vein extension near hole NP-20-07. The updated July-December exploration program is estimated to cost approximately $6.9 M.

 ON MINING

  • Aura Minerals Inc., presented Q2, 2020 production results from its Aranzazu mine in Zacatecas. It produced 5K Oz Au, 91.6K Oz Ag, and 6.2M Lb Cu (14,748 Oz AuEq).
  • Avino Silver & Gold Mines Ltd., announced that it processed 40,190 tonnes of 0.40 g/t Au, 49 g/t Ag and 0.58% Cu at metallurgical recoveries of 79%, 90% and 90% respectively, to produce 404 Oz Au, 50.6K Oz Ag, and 459.8K Lb Cu (158.3K Oz Ag) during the period Q2,2020 from its Avino mine in Durango.
  • Consolidated Zinc Limited, reported that Zn-Pb grades exceeding 25% and 8% respectively are being encountered at the newly opened up Las Espadas underground area while the semi-oxidized ore continues to be mined and delivered at rates of above 15o tonnes per day. At its Aldama plant, it has achieved record availability to July 10 2020 of 94.5% while the recoveries are improving above performance thanks to the effort of the technical team.
  • First Majestic Silver Corp., presented production results for the period Q2, 2020 from their Mexican operations. The table below shows mine by mine production figures:

At the end of Q2, 14 exploration drill rigs were active across the company’s projects consisting of 11 rigs at San Dimas, two rigs at Santa Elena and one rig at La Encantada. The company anticipates adding seven additional rigs in Q3 with a primary focus on the regional potential around Santa Elena.

  • Fortuna Silver Mines Inc., released Q2, 2020 production results from its San Jose mine in Oaxaca. The company milled 160,151 tonnes of 1.42 g/t Au and 220 g/t Ag at metallurgical recoveries of 90.91% and 90.84% respectively to produce 6,654 Oz Au and 1.03M Oz Ag, at cash cost of USD $66/ton.
  • GoGold Resources Inc., presented production results from its Parral Tailings project in Chihuahua for the period Q2, 2020. The company produced 1,914 Oz Au, 270K Oz Ag, and 233K Lb Cu (504.4K Oz AgEq).
  • Gold Resource Corporation, announced preliminary production results from its Oaxaca Mining Unit in Oaxaca. It produced 2,441 Oz Au, 185.3K Oz Ag, 551K Lb Cu, 2.56M Lb Pb, and 6.75M Lb Zn during the period Q2, 2020.
  • McEwen Mining Inc, produced in Q2, 2020 from its El Gallo mine in Sinaloa over 1,900 Oz AuEq from residual leaching of the heap leach pad.
  • Santacruz Silver Mining Ltd., released Q2, 2020 production and financial results from its Mexican operations. At Zimapan, Hidalgo the company milled 139,903 tonnes to produce 829,514 Oz AgEq from which 626,984 were sold, at cash cost per tonne and for Oz AgEq of $48.15 and $16.53 respectively, and AISC of $17.57 per Oz AgEq. At Veta Grande, Zacatecas, it milled 11,095 tonnes to produce 64,870 Oz AgEq from which 47,854 were sold, at cash cost per tonne and for Oz AgEq of $148.36 and $39.54 respectively, and AISC of $46.34 per Oz AgEq. At Rosario, San Luis Potosi, the company milled 17,497 tonnes to produce 73,251 Oz AgEq from which 61,111 were sold, at cash cost per tonne and for Oz AgEq of $62.12 and $23.47 respectively, and AISC of $29.01 per Oz AgEq.
  • Sierra Metals Inc., announced production results from its Bolivar mine in Chihuahua for the period Q2, 2020. Cusi mine remained in care and maintenance throughout Q2, 2020. At Bolivar mine, the company processed 308,951 tonnes of 0.30 g/t Au, 26 g/t Ag, and 0.93% Cu at metallurgical recoveries of 63.79%, 82.80%, and 87.09% respectively, to produce 1,912 Oz Au, 214K Oz Ag, and 5.54M Lb Cu. “At Cusi mine, Chihuahua, development is currently on-going in a zone that will bypass the previously announced area of subsidence and provide access to higher-grade economic ore to provide feed for the mill. Production is expected to recommence after the mine development work is completed and once a process can be implemented at the mine to mitigate risk to employees at the site through a testing and quarantine methodology similar to the company’s other operations”.

 

ON FINANCING

  • Aztec Minerals Corp., closed the first tranche of its private placement for gross proceeds of CAD $2.12M. Part of the gross proceeds will be used to conduct exploration work at its Cervantes project in Sonora, and for general working capital purposes.
  • Silver Tiger Metals Inc., announced a plan to conduct a non-brokered private placement for gross proceeds of up to $11M. Net proceeds will be primarily used for further exploration at its El Tigre project in Sonora.
  • Tarachi Gold Corp., announced it intends to complete a non-brokered private placement for net proceeds of up to CAD $5M. Gross proceeds will be used for exploration of its Tarachi project in Sonora, corporate development, and general working capital purposes.
  • Xtierra Inc., closed its previously announced private placement for gross proceeds of $1M. Nett proceeds will be used to expand and diversify its royalty portfolio into Canada, USA and other mining friendly jurisdictions (Bilbao project, Zacatecas).
  • Mammoth Resources Corp., announced lifting of management cease trade order and issuance of shares for debt and incentive options. The company has yet to file its Q1, 2020 financial statement and Management Discussion & Analysis which were due on June 30, 2020. It expects to file these statements shortly (Tenoriba project, Chihuahua). Mammoth also announced the issuance of 2,503,000 common shares to settle a total of $87,605 in related party and third party debts.
  • Mexus Gold US, announced that the company satisfied a $57K note payable by way of conversion. In addition, Mexus’ audit obligation has been met with the audit expected to be completed in the next 7 days. The audit process was delayed due to the company moving from an exploration company to a production company (Santa Elena mine, Sonora).
  • Telson Mining Corporation, announced that further to its application for a management cease trade order, which was granted by the British Columbia Securities Commission on June 16, 2020, it has been required to provide bi-weekly status reports in accordance with the alternative information guidelines in National Policy 12-203 management cease trade orders, until such time as the company has completed and filed its audited annual financial statements and management’s discussion and analysis in respect of the financial year ended December 31, 2019 (Tahuehueto project, Durango).
  • One World Lithium Inc., announced that it will continue providing bi-weekly updates following a management cease trader order granted for the British Columbia Securities Commission. The company anticipated that the annual filings and the quarterly filings will be filed on or before July 30, 2020 (Salar del Diablo project, Baja California Norte).

ON RESOURCES AND DEVELOPMENT

  • Endeavour Silver Corp., announced a final PFS on its Terronera mine in Jalisco. Base case highlights of the PFS include a NPV 5% of $137M, and IRR of 30%, annual production average of 3M Oz Ag and 32.8K Oz Au (5.9M OZ AgEq) over an initial  10 year mine life, a cash cost and AISC of $0.004 and $2.10 per Oz Ag net of the Au credit respectively, Initial and sustaining capital expenditures of $99M and $60M respectively, a payback period of 2.7 years, and a Pre-Tax and After-Tax undiscounted free cash flow of $315M and $217M respectively.
  • GR Silver Mining Ltd., restarted the 4,500m surface drilling at its Plomosas project in Sinaloa with three drill rigs which is expected to continue through 2020. This drill program is focused on shallow drilling (up to 150m below surface) to expand the known mineralized zones along strike at Plomosas mine and San Juan-La Colorada areas, and follow-up drilling on several new high grade Au-Ag low sulphidation epithermal veins occurrences at the Yecora and El Saltito. Additionally, GR Silver will commence recon work on 11 priority targets identified to contain potential for new discoveries.
  • Prime Mining Corp., provided an update regarding the initial phase of exploration planned on its Los Reyes project in Sinaloa. Focus of the phase 1 program is to upgrade and expand the current mineral resource, test identified zones of high-grade, and advance the understanding of the geology and structural controls of the known deposits of the property. The program is expected to cost approximately $6M and has a targeted completion date of late Q1, 2021.
  • Minera Alamos Inc., provided mid-year construction update at its Santana project in Sonora. The company announced that the heap leach pad area has been cleared of all vegetation and is undergoing contouring ahead of clay placement and the pad liner installation, and that the bypass road construction at either end of the heap leach pad area is underway; reported that the explosive storage & detonator bunkers are awaiting final inspection from the Mexican authorities ahead of the explosive permit issuance; and that the fabrication of the plant carbon columns is complete with work underway for the remaining plant steel structure.

ON DEALS AND CORPORATE ISSUES

  • Carlyle Commodities Corp., entered into an option agreement with Riverside to earn 100% interest in the Cecilia project in Sonora. In order to purchase 100% interest in the Cecilia property, Carlyle has to make aggregate cash payments of $200K over 3 years to Riverside, issue 1.5M common shares, issue 3M non-transferable special warrants, and incur an aggregate of $2.5M in exploration expenditures. Riverside will retain a 2.5% NSR.
  • Golden Minerals Company, signed a letter of intent with Fabled Copper Corp., to sell its Santa Maria project in Chihuahua. The Agreement provides a 10-calendar day period during which Fabled will conduct its due diligence. If Fabled executes the option agreement to acquire 100% interest in Santa Maria property, it has to make a cash payment of USD $0.5M and issue 1M Fabled common shares, USD $1.5M in cash 12 months after closing of the transaction, USD $2M in cash 24 months after closing of the transaction, and upon Fabled exercises the option, it will grant to Golden a 1% NSR.
  • Minera Alamos Inc., announced the appointment of a new member to its board of directors (Santana project, Sonora).
  • Oroco Resource Corp., announced the appointment of a new member to join to its board of directors (Santo Tomas project, Sinaloa).

ON SOCIAL RESPONSIBILITY

  • Fresnillo plc, continues to implement sanitary measures in its work centers and support the communities surrounding its operations in Fresnillo, Saucito, Juanicipio in Fresnillo, Zacatecas, Orisyvo in Uruachic, Chihuahua, Herradura, Noche Buena and Centauro in Caborca, Sonora, San Julian and Cienega in Durango, and in Torreon, Coahuila. . The company donated a last-generation respirator and medical protection equipment such as N-95 respirators, latex gloves, disinfectant gel, disposable gowns, disposable face masks, face masks, and disposable surgical face masks to the General Hospitals of the Mexican Institute of Social Security (IMSS), as well as thousand food pantries. With these actions, Fresnillo plc, belonging to the Mexican corporate Grupo BAL, joins the commitment to health care, with the purpose of guaranteeing the well-being of families and the population that lives in the areas surrounding its operations.
  • Grupo Peñoles, through contributions made by employees to the service of Met-Mex Peñoles, supported the donation of bed-chairs to Coahuila hospital to support those who deserve decent living conditions.
  • MSX (New Gold Inc.), donated pantries to vulnerable population in the communities of Cerro de San Pedro, San Luis Potosi, as well as personal protection equipment to hospitals designated as medical centers to care for patients with COVID-19.
  • Camino Rojo S.A. de C.V. (Orla Mining Ltd.), continued helping communities and government agencies providing support in sanitary filters installed in the border of Zacatecas with the different states; donated pantries during the months of April, May and June containing products from the basic basket which are intended to contribute to the economy of families in the communities of influence, which are San Tiburcio, Berrendo and San Francisco de los Quijano.

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, argillic alteration related to a porphyry copper system in a prospect in Michoacan, Mexico.  Photo by Miguel A Heredia.

The Mining and Exploration News in Mexico: Highlights on the Third Week of June, 2020.

Ptygmatic folds

By Miguel A Heredia

During the twenty five week of the year (June 15th to June 21tt, 2020), at least 44 press releases were announced by companies working in Mexico, with twelve disclosing deals and corporate issues, ten announcing financial rounds, six commenting on Mexican issues, five informing on exploration results, five discussing on social issues, four reporting on resources and developments, and two communicating production and financial results, ON MEXICO ISSUES, Minera Fresnillo published a press release regarding the events of last Friday, June 12, when a group of people committed excesses in the vicinity of the Fresnillo mine in Zacatecas. Fresnillo plc announced recruitment of 130 mine workers who labored at the Francisco I Madero mine in Zacatecas.  Bacanora Lithium announced that it is set to start production at its Sonora project in Mexico in 2022, despite COVID-19 interruptions. Mexico has some of the largest undeveloped Ag deposits that have been slowed by economic weakness and price fluctuations. Senator Miguel Angel Lucero Olivas, president of the Mining and Regional Development commission, will present a point of agreement to maintain the Undersecretariat of Mining and, if possible, raise it to the Secretariat level. ON EXPLORATION, In Sonora, Magna Gold announced plans to conduct initial drill programs at its La Pima, San Judas and Veta Tierra projects. In Sinaloa, Vizsla added a second rig at its Panuco project, and Kootenay released drill results from the first core hole collared at its Copalito project. In Durango, Mithril provided an update on its Copalquin project.  In Jalisco, GoGold released drill results from nine holes collared at its Los Ricos South project. ON MINING, Magna Gold provided an update and reported production and financial results for May 2020 from its San Francisco mine in Sonora. Santacruz reported consolidated Q4 and full year 2019 production and financial results from their Mexican mine operations.  ON FINANCING, Aztec Minerals arranged a non-brokered private placement for gross proceeds of CAD $3M (Cervantes project, Sonora). Candelaria Mining entered in a medium term loan facility for USD $9M (Pinos project, Zacatecas).  Mammoth closed a non-brokered private placement for net proceeds of $141,250, which due to demand was increased to $167,475 (Tenoriba project, Chihuahua). Megastar closed a non-brokered private placement for gross proceeds of $ 926,800 (Rama de Oro, Oaxaca). Telson formed a strategic funding alliance with Accendo Banco for USD $12M (Tahuehueto project, Durango). First Mexican closed the first tranche of its previously announced brokered private placement for gross proceeds of $1,235,229.73 (Guadalupe project, Sonora). GR Silver completed a bought deal private placement for gross proceeds of $9,153,000 (Plomosas project, Sinaloa). Magna Gold announced a non-brokered private placement for gross proceeds of up to $7,000,750 (San Francisco mine, Sonora).  Mexus announced that it has paid $178,855.49 to satisfy an outstanding debt obligation (Santa Elena mine, Sonora). One World Lithium approved a temporary management cease trade order which, if granted, will prohibit trading in securities of the Company by certain insiders of the Company, whether direct or indirect (Salar del Diablo project, Baja California Norte). ON RESOURCES AND DEVELOPMENT, Discovery Metals extended higher grade and expanded the drill program at its Cordero project in Chihuahua. Canuc announced that it signed a Memorandum of Understanding (MoU) with M3SH Technologies Inc., to distribute and sell technological solutions (San Javier project, Sonora). Magna Gold provided plans for its San Francisco mine in Sonora, and reported that a mine design has been completed and plans to advance a pilot test program for its Mercedes project in Sonora.  Sierra Metals released drill results and confirmed the discovery of a new high grade Ag area at its Cusi mine in Chihuahua. ON DEALS AND CORPORATE ISSUES, Bacanora Lithium received notification of the off-market transfer of a portion of the shares beneficially owned by Mark Hohnen (Sonora Lithium project, Sonora).  Fortuna Silver reported results from its annual general meeting of shareholders (San Jose mine, Oaxaca). Oroco announced that its shares have been approved to trade on the OTCQB Venture market in USA (Santo Tomas project, Sinaloa). Prime Mining announced key management changes and amended its Los Reyes option agreement in Sinaloa. Silver Dollar signed a letter of intent (LOI) to acquire La Joya project, Durango from First Majestic.  Newmont was ranked top miner in the 100 best corporate citizens list for 2020 (Peñasquito mine, Zacatecas). Torex announced management changes and results from its annual general meeting of shareholders (El Limón-Guajes mine complex, Guerrero). Tarachi Gold retained Digital 257 Technologies Inc., for digital media and capital market communication services and granted stock options to directors, officers and consultants of the compnay (Juliana project, Sonora).  SilverCrest presented results from its annual general meeting of shareholders (Las Chispas project, Sonora). Silver Spruce granted 6.75M stock options to directors and consultants of the company (Pino de Plata project, Chihuahua). ON SOCIAL RESPONSIBILITY, Mining companies operating in Mexico have shown their support in different ways to face the COVID-19 pandemic. The Grupo Mexico Foundation donated preventive kits to the Fire Department, Red Cross and Civil Protection of the Sonoran capital, and delivered health and safety kits to the Taxco, Guerrero health sector.  Minera Media Luna (Torex Gold), delivered preventive material for the COVID-19 health contingency in the municipalities of Cocula and Valerio Trujano, in Guerrero State. Minera Penmont (Fresnillo plc), strengthened security protocols to guarantee safe and contagion-free workspaces for its collaborators. Mina San Dimas of First Majestic received medical equipment to face contingency for COVID-19.

 ON MEXICO ISSUES

  • Minera Fresnillo (Fresnillo plc), published a press release regarding the events of last Friday, June 12, when a group of people committed excesses in the vicinity of the Fresnillo mine in Zacatecas, in which there were arrests of armed persons. The company initiated legal proceedings before the competent authority. Minera Fresnillo reiterated its respect for union autonomy, and the application of the Mexican rule of law, in particular, current labor legislation. The company also pointed out that there is a disinformation campaign promoted by a group of people that has not been conducted by the institutional media established by the law.
  • Fresnillo plc, announced recruitment of 130 mine workers who labored at the Francisco I Madero mine in Zacatecas. The Francisco I Madero mine was indefinitely suspended a month ago but Fresnillo called them to present their documentation and participate in the contracting process to join the Fresnillo and Saucito mines in Fresnillo, Zacatecas. With this measure, the Mexican mining company will increase its base of collaborators, which will have a positive impact in the region, as 130 new direct and 520 indirect jobs will be generated.
  • Bacanora Lithium plc, announced that it is set to start production at its Sonora project in Mexico in 2022, despite COVID-19 interruptions. The company could benefit from the momentum of a “green recovery” after the pandemic that could spur growth in the electric vehicle market, according to the analyst. The USD $420M project, to be carried out through a 22.5: 77.5% JV with strategic partner Ganfeng Lithium, will be the first to produce significant volumes of lithium in Mexico. Production is estimated to approximate 17,500tonnes per year of lithium carbonate, doubling to 35,000 tonnes starting in 2026 following a USD $380M expansion.
  • Mexico has some of the largest undeveloped Ag deposits that have been slowed by economic weakness and price fluctuations. Four deposits with reserves totaling 178 B Oz Ag remain in the list: Cordero deposit in Chihuahua and owned by Discovery Metals, has resources for 595 M Oz Ag; Pitarrila in Durango, owned by SSR Mining with 552M Oz Ag, Metates in Durango, owned by Chesapeake with 526M Oz Ag; and La Preciosa in Durango owned by Coeur with 105M Oz Ag.
  • Senator Miguel Angel Lucero Olivas, president of the Mining and Regional Development commission, will present a point of agreement to maintain the Undersecretariat of Mining and, if possible, raise it to the Secretariat level. Mexico can gain strength thanks to mining and this is a key point of support for the economic reactivation of the country, therefore it is necessary to have a government agency that can lead and represent a strategic sector such as mining.
  • Undersecretary of Mining, Francisco Quiroga Fernández, assured that the six mines he visited in Sonora are free of COVID-19. He also verified that strict protocols are being applied. So far, there have been no confirmed or probable cases of COVID-19 in any of the resumed Sonoran mines. The Undersecretariat of Mining, previously had already visited other mines in the states of Durango, Chihuahua, Zacatecas, and Coahuila, pointed out that there have been no outbreaks or contagions of COVID-19.

ON EXPLORATION

  • Magna Gold Corp., announced plans to conduct initial drill programs at its La Pima, San Judas and Veta Tierra projects in Sonora. At La Pima, a highly prospective high-grade underground Ag project located 30km NE of the San Francisco open pit, Magna plans to commence a 2,000m core drill program once it completes the permitting process and surface ownership negotiations. At San Judas, located 50 km W of San Francisco open pit, it wants to initiate a first phase of RC drilling in Q4,2020, which will comprises 3,000m to test three of the seven priority targets identified to date. At Veta Tierra, located 5.5 Km NW of the San Francisco open pit, the company wants to re-initiate activities to complete an unfinished drill program that was commenced by Timmins Gold in 2013, which will include 2,000 of RC to test the lateral continuity of the Au mineralization indicated by previous drilling along a 300m trend of an exposed diorite intrusion.
  • Vizsla Resources Corp., added a second rig at its Panuco project in Sinaloa. The company recently resumed its 14,500m drilling program focused on testing over 20 initial drill targets on its unexplored Panuco mining district. To date, only approximately 4,500m have been drilled.
  • Kootenay Silver Inc., released drill results from the first core hole collared at its Copalito project in Sinaloa. The first hole (BDH-20-001) reached a depth of 105.2m and tested the eastern edge of the Cinco Señores vein, returning 106 g/t Ag over 22m, including 1.09 g/t Au and 244 g/t Ag over 3m and including 286 g/t Ag over 1m, and other interval of 0.25 g/t Au and 250 g/t Ag over 5m, including 0.1 g/t Au and 360 g/t Ag over 1m. The 3,500m drill program will continue with the next holes planned to test the Cinco Señores vein where chip sampling returned encouraging Au and Ag values such as 2.9 g/t Au and 426 g/t Ag over 3.2m; 0.24 g/t Au and 401 g/t Ag over 5.3m; 1,155 g/t Ag over 1m; 1.8 g/t Au and 396 g/t Ag over 1m; and 534 g/t Ag over 1m. Five additional principal veins of epithermal affinity remain to be drill tested.
  • Mithril Resources Limited, provided an update on the exploration activities at its Copalquin project in Durango. “A permit for the drill program was issued in 2019 and is being fast tracked and expanded to include additional drill target areas.  All drill pads have been constructed for the initial drill program with clear access tracks established.  Drilling support infrastructure is progressing as planned, ahead of the arrival of the drill rig in the coming weeks”. Drilling will begin at La Soledad target, where over 600m of vein have been mapped at surface with an additional 400m of vein splaying off towards the El Indio mine workings to the east. Drilling will continue at Los Pinos and Los Reyes targets, each with approximately 400m of vein mapped at surface.  These structures are the eastern extension of El Cometa. There are other interesting targets in the property but need further mapping and sampling to better define drill targets.
  • GoGold Resources Inc., released drill results from nine holes collared at its Los Ricos South project in Jalisco, including three at San Juan, four at the main Area, one at Rascadero and one at the East Vein. Significant intersections were encountered in hole LR-GG-174 (Main Area) with 2.56 g/t Au and 173 g/t Ag (4.86 g/t AuEq or 365 g/t AgEq) over 15m, including 8.33 g/t Au and 496 g/t Ag (14.94 g/t AuEq or 1,120 g/t AgEq) over 4.4m; hole LR-GG-169 (San Juan) with 3.18 g/t Au and 188 g/t Ag (5.68 g/t AuEq or 426 g/t AgEq) over 4.1m; and hole LR-GG-178 (East Vein) with 1.09 g/t Au and 97 g/t Ag (2.38 g/t AuEq or 178 AgEq) over 4.4m, including 1.88 g/t Au and 171 g/t Ag (4.17 g/t AuEq or 312 g/t AgEq) over 2.0m.

ON MINING

  • Magna Gold Corp., provided an update on its San Francisco mine in Sonora and reported May 2020 production and financial results. In this period, Magna produced and sold 2,349 Oz Au at an estimated cash cost of USD $607 per Oz, resulting in Au sales of USD $4.2M and an operating profit of USD $2.8M. It also announced the commencement of mining and processing fresh mineralized material in August.
  • Santacruz Silver Mining Ltd., reported Q4 and full year 2019 production and financial results from their Mexican mine operations. In Q4, 2019, Santacruz processed 220,154 tonnes to produce 1.32M Oz AgEq at a cash and AISC of USD $ 18.75 and $21.29 per Oz AgEq produced respectively. It reported revenues of USD $9,964 and a net loss of USD $16,017. In 2019 full year, the company processed 469,291 tonnes to produce 2.83M Oz Ag at a cash and AISC of USD $18.34 and USD $21.55 per Oz AgEq produced respectively. It reported revenues for USD $27,140 and a net loss of USD $20,432.

ON FINANCING

  • Aztec Minerals Corp., arranged a non-brokered private placement financing for gross proceeds of CAD $3M with sophisticated investors, shareholders and directors of the Company. Finder´s fees may be payable in cash and / or warrants on certain portions of the financing, subject to regulatory approvals. Part of the net proceeds will be used to conduct exploration work on its Cervantes porphyry Cu-Au project in Sonora and for general working capital purposes.
  • Candelaria Mining Corp., entered into a medium term loan facility with Accendo Banco S.A. for USD $9M. Funds will be used for financing construction of its Pinos project in Zacatecas and for working capital purposes.
  • Mammoth Resources Corp., closed a non-brokered private placement for net proceeds of $141,250, the same that due to demand was increased to $167,475. Gross proceeds will be used for working capital purposes, including corporate development expenses (Tenoriba project, Chihuahua).
  • Megastar Development Corp., closed a non-brokered private placement for gross proceeds of $926,800. Net proceeds will be used to continue exploration on multiple properties within the Oaxaca, Mexico Au-Ag belt optioned from Minera Zalamera S.A. de C.V. (Yautepec, Magdalena and Rama de Oro projects, Oaxaca).
  • Telson Mining Corporation, formed a strategic funding alliance with Accendo Banco for USD $12M. Funds will be used for the construction of the Tahuehueto mining project in Durango and general working capital purposes. Accendo also intends to purchase up to USD $500K of existing debt with Tahuehueto mining project´s suppliers and convert the debt into common shares of Telson. Additionally, Telson intends to conduct a non-brokered private placement for up to $750K.
  • First Mexican Gold Corp., closed the first tranche of its previously announced brokered private placement for gross proceeds of $$1,235,229.73 (Guadalupe project, Sonora).
  • GR Silver Mining Ltd., completed a previously announced bought deal private placement for gross proceeds of $9,153,000. GR plans to use the net proceeds to fund resource expansion and drilling at its Plomosas and San Marcial projects in Sinaloa, and for working capital and general corporate purposes. Brokers who helped with the financing will receive a cash commission of $636,660 and an aggregate of 2,358,000 non-transferable broker warrants at an issue price for a period of 12 months from the closing date of the offering.
  • Magna Gold Corp., announced a non-brokered private placement for net proceeds of up to $7,000,750 and includes lead investments by Eric Sprott and two mining industry participants. The net proceeds from the private placement will be used for working capital purposes in connection with the company’s existing projects. In connection with the private placement, certain parties may receive a finder’s fee payment equal to 6% of the gross proceeds of the offered shares (San Francisco mine, Sonora).
  • Mexus Gold US, announced that on June 13, 2020 it has paid $178,855.49 to satisfy an outstanding debt obligation (Santa Elena mine, Sonora).
  • One World Lithium Inc., approved a temporary management cease trade order which, if granted, will prohibit trading in securities of the company by certain insiders of the company, whether direct or indirect (Salar del Diablo project, Baja California Norte).

ON RESOURCES AND DEVELOPMENT

  • Discovery Metals Corp., released results from 8 drill holes, and extends higher grade at is Cordero project in Chihuahua. Highlights include hole C20-326 with 2,470 g/t Ag, 0.02 g/t Au, and 0.4% Zn (2,489 g/t AgEq) over 0.7m; hole C20-328 with 69 g/t Ag, 0.13 g/t Au, 1.1% Pb, and 1.9% Zn (197 g/t AgEq) over 51.9m, and 62 g/t Ag, 0.22 g/t Au, 1.2% Pb, and 1.3% Zn (174 g/t AgEq) over 62.2m; and hole C20-330 with 38 g/t Ag, 0.16 g/t Au, 0.8% Pb, and 0.8% Zn (112 g/t AgEq) over 85.5m. Based on results Discover has expanded its drilling program from 30,000-35,000m to 50,000-55,000m and will be focused on: 1) “Targeting of broad zones of breccia-hosted mineralization in the east and north-east of both mineralized corridors and 2) Testing of the width, grade and continuity of extensive high-grade vein systems identified in and adjacent to historical artisanal underground workings during the early history of the Project”.
  • Magna Gold Corp., provided an update on its Mercedes and San Francisco properties in Sonora. It reported that a mine design has been completed for its Mercedes project in Sonora, based on the initial drill program completed last year. It also reported that a suite of metallurgical tests work is currently underway. Magna´s objective is to extract 20K Oz Au with minimal associated operating and capital expenditures to provide additional information on the deposit that will guide future drilling and work programs. At San Francisco mine, it announced the execution of an initial four-month drill program in and around San Francisco and La Chicharra open pits to support the conversion of mineral resources to reserves. Magna also has retained Micon International Limited to complete a PFS to re-evaluate the resource model, examine potential operational improvements, and develop an optimized production schedule that incorporates all currently available drill data, updated operating costs and revised gold price assumptions. It is expected to be completed by the end of July, 2020.
  • Sierra Metals Inc., released drill results and confirmed the discovery of a new high grade Ag area called Northeast-Southwest system of epithermal veins at its Cusi mine in Chihuahua. The new high-grade silver vein system was discovered as a consequence of a combination of mine development work in recent months and confirmatory drilling. Significant drill intersections were encountered in hole DC20M658 with 0.1g/t Au, 304 g/t Ag, 0.34%Pb, and 0.25% Zn (327 g/t AgEq) over a true width (TW) of 9.35m; hole DC20M677 with 0.03 g/t Au, 1,140 g/t Ag, 0.37% Pb, and 0.36% Zn (1,163 g/t AgEq) over a TW of 4.90m; hole DC20M686 with 0.04 g/t Au, 428 g/t Ag, 0.46% Pb, and 0.76% Zn over a TW of 17.45m; and hole DC20M687 with 0.45 g/t Au, 890 g/t Ag, 1.74% Pb, and 3.2% Zn (1,151 g/t AgEq) over a TW of 0.85m.

ON DEALS AND CORPORATE ISSUES

  • Bacanora Lithium plc., received notification of the off-market transfer of a portion of the shares beneficially owned by Mark Hohnen, Executive Chairman of the Company. The transfer is ultimately to an existing superannuation pension fund of Mr. Hohnen (Sonora Lithium project, Sonora).
  • Canuc Resources Corporation, announced that it signed a Memorandum of Understanding (MoU) with M3SH Technologies Inc. This will allow Canuc to distribute and sell technological solutions enabling Canuc to facilitate application with mining and extractive industry clients (San Javier project, Sonora).
  • Fortuna Silver Mines Inc., reported results from its annual general meeting of shareholders (San Jose mine, Oaxaca).
  • Oroco Resource Corp., announced that its shares have been approved to trade on the OTCQB Venture market in USA under the symbol “ORRCF”, effective immediately (Santo Tomas project, Sinaloa).
  • Prime Mining Corp., announced key changes in executive management and board of directors, appointing its new CEO, Executive VP, and two new board members. The company also announced that it entered into an amendment to its option agreement on Los Reyes project in Sinaloa, with Vista Gold Inc. The amendment provides for the cancellation of all ongoing NSR and back-in rights held by Vista, in consideration for accelerating the final USD $1.5M option payment owing to Vista and completing a series of additional cash payments totalling USD $2.1M. “Upon the company making the option payment, Vista will no longer retain a capped NSR on production from open-pit mining and a perpetual NSR on production from underground mining.  In addition, Vista will no longer have the Back-in Right to assume a 49% non-carried interest in any underground mining project developed at the property”.
  • Silver Dollar Resources Inc., signed a letter of intent (LOI) to acquire an initial 80% of interest following the exercise of which it may earn an additional 20% for an aggregate 100% interest in La Joya project, Durango from First Majestic Silver Corp. To acquire an 80% interest in la Joya, Silver Dollar will make a cash payment of $1.3M over four years, issue shares equal to 19.9% of Silver Dollar´s then outstanding common shares within one year, incur $1M of exploration expenditures within the first five years, and grant First Majestic a 2% NSR. If Silver Dollar incurs the exploration expenditures within the first three years; however, First Majestic will waive the remaining $600K – or nearly half – of the cash option payments. Silver Dollar may exercise its second option and acquire the remaining 20% (for an aggregate 100%interest) of the La Joya property by providing notice to First Majestic within 30 days of earning the first 80% interest and issuing to First Majestic additional shares equal to 5% of Silver Dollar’s then-outstanding common shares within five years. If Silver Dollar does not provide such notice, Silver Dollar and First Majestic will enter into a joint venture.
  • Newmont Corporation, was ranked top miner in the 100 best corporate citizens list for 2020. It moved from 20th on last year´s list to 13th overall in 3BL Media´s (formerly Corporate Responsibility Magazine´s) 100 Best Corporate citizens (Peñasquito mine, Zacatecas).
  • Torex Gold Resources Inc., notified management changes and results from its annual general meeting of shareholders. It announced the appointment of its new CEO, Executive Chair, and Independent Director (El Limón-Guajes mine complex, Guerrero).
  • Tarachi Gold Corp., retained Digital 257 Technologies Inc., for digital media and capital market communication services. The Company will compensate Digital 257 $10K per month for three months of service. Tarachi also granted 2,735,000 incentive stock options to directors, officers and consultants of the company at an exercise price of $0.31 per share (Juliana project, Sonora).
  • SilverCrest Metals Inc., presented results from its annual general meeting of shareholders (Las Chispas project, Sonora).
  • Silver Spruce Resources Inc., granted 6.75M stock options to directors and consultants of the company with an exercise price of $0.05 per share (Pino de Plata project, Chihuahua).

ON SOCIAL RESPONSIBILITY

  • Mining companies operating in Mexico, have shown their support in different ways to the communities where they operate to face the COVID-19 pandemic. According to the Mexican Mining Chamber (CAMIMEX), 26 mining companies that operate in 16 entities of the country have made different contributions to the sanitary emergency. The contributions have been of a different nature, including donations of medical equipment and personal protection kits, basic services such as water and electricity, medical services, pantries, etc.
  • The Grupo Mexico Foundation, donated preventive kits to the Fire Department, Red Cross and Civil Protection of Hermosillo, Sonora, in order to support public institutions that work daily for the benefit of the community in the face of the health contingency by COVID-19. The Grupo Mexico Foundation delivered 500 protection kits containing goggles, N95 masks to the Fire Department, 500 kits to Civil Protection, and 300 kits to the Red Cross Delegation in Hermosillo, Sonora. It also delivered 35 health and safety kits to the Taxco, Guerrero health sector such as the Adolfo Prieto General Hospital, the Mexican Red Cross Taxco delegation, the Mexican Institute of Social Security and Civil Protection. The donation consisted of 10 packages of safety kits that include tyvek suits, face shield and gloves, and the donation of 25 health kits consisting of tyvek suits, gloves, caps, shoe covers and disposable aprons.
  • Minera Media Luna (Torex Gold), delivered preventive material for the COVID-19 health contingency and surgical material to strengthen the health infrastructure in the Health Centers and Houses of the communities of Nuevo Balsas, Atzcala, Real del Limón and La Fundición, in the municipality of Cocula and Valerio Trujano and in the neighborhood of Tepecoacuilco, in Guerrero state.
  • Minera Penmont (Fresnillo plc), strengthened security protocols to guarantee safe and contagion-free workspaces for its collaborators. The protocols that the company has implemented have been in accordance with the guidelines defined by the Secretaries of Health, Economy and Labor of the Federal Government. Minera Penmont reinforced the cleaning tasks in all its facilities and disinfection of transport trucks for collaborators and suppliers. It placed disinfectant gel in areas of greater affluence and promoted the use of masks in offices and respirators in operating areas. In addition, it installed sanitary filters in which the health status of the personnel was evaluated with first-class equipment and the latest technology such as infrared thermometers and a thermal imager.
  • Mina San Dimas of First Majestic received medical equipment to face contingency for COVID-19 in the San Dimas communities through the company clinic. It received specialized medical equipment to care for patients with acute respiratory diseases, other equipment including oxygen concentrators, laryngoscopes, as well as a capnograph and a portable emergency ventilator that together have a market price of around USD $65K.

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, ptygmatic folds developed in a meta-sedimentary sequence in an orogenic Au prospect in Michoacan, Mexico.  Photo by Miguel A Heredia.

The Mining and Exploration News in Mexico: Highlights on the First Week of June, 2020.

tight folds

By Miguel A Heredia

During the twenty three week of the year (June 1st to June 7th, 2020), at least 49 press releases were announced by companies working in Mexico, with fifteen commenting on Mexican issues, twelve communicating resumptions, production and financial results, six announcing financial rounds, five discussing on social issues, five reporting on resources and developments, three disclosing deals and corporate issues, and three informing on exploration results.  ON MEXICO ISSUES, The Undersecretary of Mining and the state Governors declared that the resumption of the mining activities in the first week of June has been successful. Francisco Quiroga, the Undersecretary of Mining, stated that the mining sector will sustain part of the national economic recovery after the COVID-19 pandemic.  The Mexican government, in a very unfortunate statement, declared that it is analyzing the possibility to disappear the Undersecretariat of Mining. Fernando Alanís, president of the Mexican Mining Chamber (Camimex), stated that Mexico’s mining production would drop 17% this year due to coronavirus pandemic. The deputy of the PRI, Carlos Pavón Campos, will present a proposal requesting that the Mining Fund returns to be used in accordance to its original objective. Esperanza Silver de México (Alamos Gold Inc.) announced that it expects to create hundreds of direct + indirect jobs if they open its Esperanza mine in Morelos. According to Fernando Alanis, president of the Mining Chamber of Mexico (CAMIMEX), mining companies plan to invest USD $4B in 2020.  Resuming of the mining activities in Oaxaca will activate 10,000 jobs. ON EXPLORATION, In Sinaloa, Vizsla recommenced drilling at its Panuco project. In Zacatecas, Advance Gold provided an exploration update on its Tabasqueña project. In Jalisco, GoGold resumed drilling at its Los Ricos project.  ON MINING, Several mining, such as GoGold, Great Panther, Avino, Argonaut, Impact Silver, Pan American Silver, Telson, Excellon, and Sierra Metals among others, announced the restart of their Mexican mining operations after receiving approval of the Mexican Social Security Institute (IMSS).  Mexus Gold reported its May 2020 production results from its Santa Elena mine in Sonora. US Antimony reported its Sb and zeolite production for the month of May 2020. Excellon presented Q1 2020 production and financial results (La Platosa, Durango).  ON FINANCING, Advance Gold announced a non-brokered private placement for gross proceeds of up to $300K (Tabasqueña project, Zacatecas). Discovery Metals closed the first tranche of a CAD $35M non brokered private placement, for aggregates proceeds of CAD $17.1M (Cordero project, Chihuahua). Magna Gold closed its previously announced non-brokered private placement for gross proceeds of $7M (San Francisco mine, Sonora). Silver Viper closed its previously brokered private placement for gross proceeds of CAD $5.12M (La Virginia project, Sonora). Alamos Gold declared quarterly dividends of USD $0.015 per common share (Mulatos mine, Sonora).  Pan American Silver announced the closing of its overnight marketed secondary offering of common shares of Maverix Metals Inc., in which it raised gross proceeds of USD $45.54M (La Colorada mine, Zacatecas).  ON RESOURCES AND DEVELOPMENT, VanGold concluded its +1,000 tonnes bulk sample and metallurgical test of mineral material from its Pinguino project in Guanajuato. Premier announced an update on its delineation core drilling program at its Mercedes mine in Sonora. US Antimony reported that a thickener circuit is being constructed on site at its Puerto Blanco mill in Guanajuato.  Endeavour released new high grade Au-Ag drill results from its Guanacevi mine in Durango. Golden Minerals President & CEO spoke about its Velardeña and Rodeo projects in Durango and its intention to bring them into production in 2021.   ON DEALS AND CORPORATE ISSUES, Canuc postponed the filing of its interim consolidated financial statement and management´s discussion and analysis for the period ended March 31, 2020 due to the COVID-19 pandemic (San Javier project, Sonora).  San Marco granted stock options to directors and officers (Chunibas project, Sonora). Newmont published its 2019 sustainability report (Peñasquito mine, Zacatecas).  ON SOCIAL RESPONSIBILITY, Consorcio Minero Peña Colorada invested MXP $4M to refurbish health unit in Manzanillo, Colima. The Grupo Mexico Foundation delivered important donation to the Health Sector of Chihuahua and Sombrerete, Zacatecas. Minera Cuzcatlán (Fortuna Silver) donated medical ventilator, pantries, medicines and cleaning kits in Oaxaca. Minera San Julián (Fresnillo plc) delivered a mechanical ventilator and personal protection equipment to medical personnel of the Mexican Social Security Institute (IMSS) of Parral, Chihuahua.

ON MEXICO ISSUES

  • The Undersecretary of Mining and the state governments, declared that the resumption of the mining activities in the first week of June has been successful. Almost 90% of the companies in the sector are already on work, thanks to the support of Francisco Quiroga, the Undersecretary of Mining of the Ministry of Economy, who established agreements with Governors of the states and with the companies, so that they could return to work safely and without risk of COVID-19 infections. The remaining 10% of mining companies are preparing sanitary protocols to resume activities in the coming days.
  • Francisco Quiroga, the Undersecretary of Mining, stated that the mining sector will sustain part of the national economic recovery after the COVID-19 pandemic. Activities derived from the mining industry serve to maintain various communities and even in some areas is the main source of economy. The mining sector is carrying out its reactivation of activities in a progressive way and with respect to health protocols. The sector has always worked with rigorous safety protocols to carry out its activities,
  • The Mexican government, in a very unfortunate statement, declared that it is analyzing the possibility to disappear the Undersecretariat of Mining. The measure would be in complete contradiction to the recent recognition of mining as an essential sector that generates 2.6 million jobs, has an impact in 10 states of the country and represents around 3% of GDP. The president AMLO has suggested the imminent disappearance, conversion, or inclusion in another agency, in order to reduce public spending. It occurs just when the Undersecretary of Mining, Francisco Quiroga, reached agreements with Governors, and the mining companies and their representatives have worked hard in a coordinated way to implement the security protocols. Entrepreneurs in this area, both Mexican and foreign, consider that the disappearance of the Undersecretariat of Mining may be negative for a sector that represents around 8% of industrial GDP. The panorama is worrying, since it seems to show the little interest of the current administration to encourage the development of the mining sector. Mining companies and their representatives see this measure as a setback for the country´s development. AMLO stated that to date, none decision has been taken so far, and recognized that mining is a fundamental economic activity that generates many jobs in the case of Sonora, Chihuahua, Durango, and the rest of the mining states.
  • Fernando Alanís, president of the Mexican Mining Chamber (Camimex), stated that Mexico’s mining production would drop 17% this year and the sector´s export could decrease by around 10% due to the cessation of operations to contain the spread of the coronavirus. He also said that although activities in the industry were beginning to resume and about half of the operating personnel had returned to work, exploration work remained suspended and anticipated that the pandemic would also have ended with some 71,000 indirect jobs in the local sector.
  • The deputy of the PRI, Carlos Pavón Campos, will present a proposal in the Chamber of Deputies, requiring that the Mining Fund returns to carry out infrastructure works in the municipalities of the country where mining activity is performed, with the purpose of promoting the development of the communities, which was its original objective.
  • Esperanza Silver de México (Alamos Gold Inc.), announced that it expects to create hundreds of direct + indirect jobs if they open its Esperanza mine in Morelos. Esperanza Silver, under the scheme of a “New Model of Social and Environmentally Responsible Mining” policy, wants to bring its project to the community of Tetlama to protect the environment and generate employment that is essential for the economic reactivation of the state due to the direct + indirect jobs that will be generated, the value chains and supplies that will be activated, and the generation of taxes that will favorably impact state and municipal public finances. The company has projected an estimated investment of USD $450M to bring into production its mining project.
  • According to Fernando Alanis, president of the Mining Chamber of Mexico (CAMIMEX), mining companies plan to invest USD $4B in 2020, which represents 14% more than in 2019, despite the COVID-19 health crisis.
  • Resuming of the mining activities in Oaxaca, will activate 10,000 jobs. The mining personnel will carry out all the health and training protocols to avoid COVID-19 infections, supervised by the Mexican Social Security Institute (IMSS).

ON EXPLORATION

  • Vizsla Resources Corp., announced that it has re-commenced drilling at its Panuco project in Sinaloa. It had previously announced the return of its staff to the project on May 21, 2020 to execute its exploration program at its district-scale project.
  • Advance Gold Corp., provided an update on its Tabasqueña project in Zacatecas. The CEO of the company stated that they have hit what appears to be a very large sulphide system with their recent drilling program collared into a 3.2Km continuous IP chargeability anomaly. These holes encountered promising grades in the stacked lenses of disseminated sulphides. Next step will be to drill the core of the system on the hinge zone of the IP chargeability anomaly, where it increases in width, to confirm the identified mineralization.
  • GoGold Resources Inc., resumed drilling at its Los Ricos project in Jalisco. The Company is nearing completion of resource drilling at Los Ricos South for its upcoming 43-101 compliant resource calculation.

ON MINING

  • Several mining companies, such as GoGold, Great Panther, Avino, Argonaut, Impact Silver, Pan American Silver, Telson, Excellon, and Sierra Metals, among others, announced the restart of their Mexican mining operations following a government order adding mining to the list of essential services, and after receiving approval from the Mexican Social Security Institute (IMSS).
  • Mexus Gold US, reported May 2020 production results from its Santa Elena mine in Sonora. It produced 102 Oz Au. The company announced that it plans to produce 150 Oz Au in June 2020. The heap leach pad at the Santa Elena mine currently holds 18,000 tons of mineralized material. Head grades are estimated at 3 to 4 g/t Au.
  • US Antimony Corporation, announced that it produced 108.9K Lb Sb and 1,129 tonnes of zeolites during the month of May 2020.
  • Excellon Resources Inc., presented Q1 2020 production and financial results from its La Platosa mine in Durango. It processed 19,042 tonnes of 542 g/t Ag, 5.4% Pb and 6.8% Zn to produce 296.3K Oz Ag, 1.89M Lb Pb, and 2.1M Lb Zn (or 523.7K Oz AgEq) with metallurgical recoveries of 89.3%, 82.8%, and 74.9% respectively.  Total cash and AISC of USD $15.35 and USD $26.52 per Oz Ag payable was reported respectively. The company had revenues of USD $6.6M, gross loss of USD $0.1M, cash and cash equivalents of USD $8.4M.

ON FINANCING

  • Advance Gold Corp., announced a non-brokered private placement to raise gross proceeds for a maximum of $300K. Net proceeds will be used to advance its Tabasqueña project in Zacatecas and for general corporate purposes.
  • Discovery Metals Corp., closed the first tranche of a CAD $35M non brokered private placement, for aggregates proceeds of CAD $17.1M. Discovery intends to close a further CAD$7,9M in subscriptions in a second tranche of the private placement, for an aggregate total of CAD $25M. Net proceeds of the first tranche will be used to fund their Cordero and Coahuila projects in Chihuahua and Coahuila states respectively, and for general working capital purposes.
  • Magna Gold Corp., closed its previously announced non-brokered private placement for gross proceeds of $7M. Gross proceeds will be used for working capital purposes in connection with their existing projects (San Francisco mine and Mercedes and San Judas projects, Sonora).
  • Silver Viper Minerals Inc., closed its previously announced brokered private placement for gross proceeds of CAD $5.12M. A cash commission of CAD $218,770 was paid to the brokers, representing a 6% of the gross proceeds. Silver Viper will be used the net proceeds to fund the development of its Virginia project in Sonora, and for working capital and general corporate purposes.
  • Alamos Gold Inc., declared quarterly dividends of USD $0.015 per common share. The company has paid dividends for 11 consecutive years during which time USD $173M has been returned to shareholders through dividends and share buybacks.
  • Pan American Silver Corp., announced the closing of its overnight marketed secondary offering of common shares of Maverix Metals Inc., in which Pan American raised gross proceeds of USD $45.54M (La Colorada mine, Zacatecas).

ON RESOURCES AND DEVELOPMENT

  • VanGold Mining , concluded its +1,000 tonnes bulk sample and metallurgical test of mineral material from its Pinguino project in Guanajuato. This bulk sample was sent to Endeavour’s Bolañitos mill, located approximately 28km from El Pinguico project. The company will report the results obtained once the information is received. On the other hand, crews are clearing the bottom of the El Pinguino shaft since approximately 30 m of debris has accumulated at the bottom. Once it is done, VanGold plans to sample the bottom of the underground stockpile in order to determine if the grades of Au and Ag obtained on the top of the stockpile extends to the bottom of it; inspecting the #7 Sangria adit since it may provide a potential safe and inexpensive haulage way to bring the underground material to surface; and sample the Colmillo stope since it was a high grade portion of the Pinguico mine during the period prior to its closure in 1913.
  • Premier Gold Mines Limited, announced an update on its delineation core drilling program at its Mercedes mine in Sonora. The 2020 delineation drilling campaign is focused on expanding and confirming higher-grade mineralization in several areas including Marianas and Diluvio West. Highlights at Diluvio West include hole UG-DI20-096 with 6.1 g/t Au and 23 g/t Ag over 84.7m, and hole UG-DI20-095 with 6.38 g/t Au and 14 g/t Ag over 73.5m. At Marianas, good drill intersections were encountered at hole UG-MR20-056 with 11.67 g/t Au and 56g/t Ag over 5.2m and hole UG-MR20-059 with 9.74 g/t Au and 16 g/t Ag over 11.3m. Diluvio consists of a stockwork system that is divided into Diluvio Central, hosted in felsic volcanoclastic, and Diluvio West hosted in an andesite while Marianas represents the down-plunge extension of the main Mercedes mine trend.
  • US Antimony Corporation, reported that a thickener circuit is being constructed on site at its Puerto Blanco mill in Guanajuato to increase the production rate and control the pulp density of ore to be processed. “The company is anxious to continue on the cyanide leach of the gold and silver Los Juarez ore now that they will have a thickener.”
  • Endeavour Silver Corp., released drill results of 18 holes collared in the Santa Cruz vein on the El Curso property at its Guanacevi mine in Durango, of which 12 holes reported new high grade Au-Ag values over minable widths. Drilling highlights include hole UCM-27 with 3.25 g/t Au and 1,085 g/t Ag (1,410 g/t AgEq) over a true width (TW) of 10m; hole UCM-26 with 1.87 g/t Au and 762 g/t Ag (949 g/t AgEq) over a TW of 5.1m; and hole UCM-25 with 1.43 g/t Au and 986 g/t Ag (1,129 g/t AgEq) over a TW of 4.8m. This drilling program confirmed the extension of the P4 orebody, and now the extension measures 200 m long by 300 m deep, still open at depth, and discovered a new mineralized zone to the west of the P4 extension of 250 m long by 150 m deep, still open along strike and at depth.
  • Golden Minerals Company President & CEO, spoke about its Velardeña and Rodeo projects in Durango and its intention to bring them into production in 2021. The company is currently generating revenue through the lease of its oxide mill in Mexico to Hecla Mining Company, and intends to bring into production its Rodeo open pit Au project in 2021 after the lease concludes with Hecla at the end of 2020. Rodeo, according to the PEA “is capable to provide almost USD $25M in after-tax cash flow in two years of production. The goal of the company is to use the cash generated from Rodeo to finance a potential startup for its Ag-Au Velardeña project. Velardeña’s 2020 PEA shows an USD $86M NPV”.

 ON DEALS AND CORPORATE ISSUES

  • Canuc Resources Corporation, postponed the filing of its interim consolidated financial statement and management´s discussion and analysis for the period ended March 31, 2020 due to the COVID-19 pandemic (San Javier project, Sonora).
  • San Marco Resources Inc. granted stock options to directors and officers (Chunibas project, Sonora).
  • Newmont Corporation, published its 2019 sustainability report, “Beyond the Mine”, a transparent and comprehensive disclosure of the Company’s environmental, social and governance (ESG) performance.

ON SOCIAL RESPONSIBILITY

  • Consorcio Minero Peña Colorada S.A. de C.V., invested MXP $4M to reconvert a building attached to the Manzanillo General Hospital, providing it with medical equipment and furniture for 3 medical care modules and one more for the rest of medical personnel.
  • The Grupo Mexico Foundation, delivered important donation to the Health Sector of Chihuahua, which consisted of five new mechanical ventilators, 15,000 medical equipment consisting of N-95 masks, disposable gowns, face masks, goggles, overalls, boot covers, respirators, aprons and gloves, as well as ultrasound equipment, portable X-rays and monitoring panels. The donation also included 25 non-invasive ventilators and 10,000 serological tests for COVID-19, which will allow detecting a greater number of people infected and have a broader overview of the behavior of the disease in the state. Additionally, Grupo México Foundation also joined the Chihuahua Food Program, by donating 650 pantries to support vulnerable groups in the municipalities of Aquiles Serdán and Santa Bárbara. In Sombrerete, Zacatecas, the Grupo Mexico Foundation also delivered more than 1,700 articles of medical supplies consisting of tyvek coveralls, N95 masks, face shields, disposable gowns and boot covers, and alcohol gel, and donated 700 pantries to the municipality of Sombrerete through the Municipal DIF to be distributed among the groups most at risk from this epidemic, as is the case of older adults in the Divine Providence Asylum that received 40 pantries with items from the basic food basket.
  • Compañía Minera Cuzcatlán (Fortuna Silver Mines Inc., donated MXP $1.3M to the Business Contingent Exchange and the Medical Support Program promoted by the Oaxaca Ministry of Economy to buy an equipment for ventilation and respiratory monitoring in the Intensive care unit, and delivered more than 3,300 pantries, 3,400 family cleaning packages and 4,600 medicines to the population of San José del Progreso and communities close to the operation of the San José mining unit. It is estimated that these actions have benefited more than 7,000 Oaxacans.
  • Minera San Julián (Fresnillo plc), delivered a mechanical ventilator equipment to the Mexican Social Security Institute (IMSS) of Parral, Chihuahua and donated more than 2,000 pieces of personal protective equipment such as 50 tyvek suits, 200 N-95 face masks, 200 surgical fabric mouth masks, 600 mine-made mouth masks, 1,000 pairs of nitrile gloves and 50 safety glasses to employees of the health institution.

 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, tight folds in an orogenic Au prospect in Michoacan, Mexico.  Photo by Miguel A Heredia.

The Mining and Exploration News in Mexico: Highlights on the Third Week of May, 2020.

Phyllic alteration

By Miguel A Heredia

During the twenty one week of the year (May 18th to May 24th, 2020), at least 36 press releases were announced by companies working in Mexico, with twelve commenting on Mexican issues, six disclosing deals and corporate issues, five discussing on social issues, four informing on exploration results, three communicating production and financial results, three announcing financing rounds, and three reporting on resources and developments.  ON MEXICO ISSUES, Foreign Direct Investment (FDI) in the Mexican mining sector decreased last year according to government data.  Mexico deemed mining an essential activity, allowing companies to resume production activities. The Undersecretary of Mining, Francisco Quiroga, agreed with the Union Labour leaders on the strategy to guarantee a safe return to the mining operations in the country.  A protocol for reopening companies was defined and only the Mexican Institute of Social Security (IMSS) can approve it or rejected it. Mining companies with operations in Chihuahua signed a letter of commitment before the State Government and the Government of Mexico, to follow the instructions on health and safety at work during the phase of resumption of operations in the so-called “new normality”. Excellon Resources and the FRENTE Metallurgical Mining Union reached some agreements to continue operating the La Platosa mine in Durango. Industrias Peñoles announced the shutdown of its Francisco I Madero Zinc mine in Zacatecas due to difficult mining conditions and low metal prices. ON EXPLORATION, In Sonora, Tocvan and its partner Colibri announced exciting new targets on its Pilar project. In Chihuahua, Kootenay released drill results from the first six of ten holes completed to date at its Columba project. In Sinaloa, Vizsla restarted its exploration and drilling program at its Panuco project.  ON MINING, Mag Silver reported Q1, 2020 financial results (Juanicipio project, Zacatecas). Mexus reported additional gold sales from production at its Santa Elena mine in Sonora. McEwen reported full year 2019 production results from its El Gallo mine in Sinaloa. ON FINANCING, Magna Gold announced a non-brokered private placement to raise gross proceeds of up to $7M (Mercedes project, Son).  Discovery Metals announced that it intends to complete a non-brokered private placement for gross proceeds of up to CAD $25M (Cordero project, Chihuahua).  Mithril announced that its rights issue for capital raising has closed with strong support for both shareholder entitlements and additional shortfall shares (Copalquin project, Durango).      ON RESOURCES AND DEVELOPMENT, Endeavour reported drill results from fourteen holes collared at its Bolaños mine in Guanajuato, eight of which intersected high-grade mineralization in the Melladito Vein. Mag Silver provided an update on its Juanicipio project in Zacatecas. VanGold announced plans to conduct a 1,000 tonnes bulk sample from its Pinguino project in Guanajuato. ON DEALS AND CORPORATE ISSUES, Alamos Gold reported results of its annual general meeting of shareholders (Mulatos mine, Sonora). Argonaut shareholders and Alio securityholders approved merger to create North American diversified Intermediate gold producer (El Castillo mine, Durango). Equinox announced results of its annual general meeting of shareholders (Los Filos mine, Guerrero). Defiance extended its option agreement on its San Acacio project in Zacatecas to 2023. Silver Tiger (former Oceanus Resources) commenced trading under the symbol “SLVR” (El Tigre project, Sonora). Sierra Metals appointed its new CEO (Bolivar mine, Chihuahua). ON SOCIAL RESPONSIBILITY, The Grupo Mexico Foundation donated 5,000 molecular tests for COVID-19, and will be distributing 450,000 protection kits in Mexico City as well as in the states of Mexico, Jalisco and Nuevo Leon. Minera Gorrión, subsidiary of Almaden Minerals and in charge of developing the Ixtaca mine project, in the north of Puebla, donated 1,000 disinfecting gels and 2,000 masks to the Ixtacamaxtitlán Community Hospital, in charge of leading efforts against the epidemic in the region. Minera Media Luna (Torex Gold), will donate MXP $2M to launch a hospital in Iguala, Guerrero, which will exclusively treat patients with COVID-19. Consorcio Minero Peña Colorada S.A. de C.V. , donated MXP $500K to the Integral Development of the Family (DIF)  of Colima State to allocate it to the Emergent Food Attention Program implemented by the government.

ON MEXICO ISSUES

  • Foreign Direct Investment (FDI) in the Mexican mining sector, decreased last year, according to government data. Net FDI in 2019 was USD $592M, down from almost USD $ 650M in 2018, according to data published by the economy ministry. The 2019 figure is the lowest compared to previous years. Spending peaked at USD $ 5.44B in 2013. The industry leaders see a general decline in investment in 2020 due to the COVID-19 pandemic. Mining companies intend to restart operations in June 1, 2020, as part of a gradual reopening of the economy under which the sector has acquired essential status.
  • Mexico, deemed mining an essential activity, allowing companies to resume production activities, six weeks after asking all non-essential business to temporarily close in response to the COVId-19 pandemic. Argonaut, Azure, Compañía Real del Monte, Premier, Newmont, Alamos Gold, Great panther, among others, are some of the mining companies which will be starting activities at its mine operations.
  • The Undersecretary of Mining, Francisco Quiroga, agreed with the Union Labour leaders on the strategy to guarantee a safe return to the mining operations in the country, once the reactivation of this sector was allowed. The mining sector generates 370K direct jobs and 2.3M of indirect jobs throughout the country, which generates benefits for workers and employees. Mining represents an essential sector because it supplies raw materials to practically all industries. On the other hand, Francisco Quiroga has been very active working with mining companies to define, along with the Secretary of Health, Jorge Alcocer Varela, the protocols for a safe reopening in 249 mining municipalities.
  • A protocol for reopening companies was defined by the authorities. Companies must have the authorization of the Mexican Institute of Social Security (IMSS) to restart activities, after remain closed due to the CIVID-19. According to the Technical Guidelines for Health Safety in the Workplace, published this Monday by the Ministry of the Economy (SE), the IMSS will have 72 hours to approve or reject the request.
  • Mining companies with operations in Chihuahua, signed a letter of commitment before the State Government (Governor Javier Corral) and the Government of Mexico (Undersecretary of Mining Francisco Quiroga), to follow the instructions on health and safety at work during the phase of resumption of operations in the so-called “new normality”. Francisco Quiroga added that to close the circle of prevention, the mining industry will be trained in the management of the different equipment that will be put into operation to comply with the protocols set by the State Health Council.
  • Excellon Resources Inc., and the FRENTE Metallurgical Mining Union, reached some agreements to continue operating the La Platosa mine in the Bermejillo community, located in the Mapimí municipality, Durango. It highlights a cut of around 20% in personnel and a technical strike for the next 60 days as the company develops the restructuring process. The official assured that the liquidations of the personnel who will be dismissed will be 100% and in accordance with the provisions of the law, in addition to reaching an agreement with the union so that, while the technical strike is carried out, only 50% of their salary will be paid to the rest of the workers who, due to the pandemic caused by the COVID-19, are in domiciliary protection.
  • Industrias Peñoles S.A.B. de C.V., announced the shutdown of its Francisco I Madero Zinc mine in Zacatecas, due to difficult mining conditions and low metal prices. It stated that it has begun laying off unionized workers in the mine unit and also trying to reassign to others workers and contractors to other mine units. The Francisco I Madero mine started operations in 2001. Peñoles processed in 2019, over 2.3M tonnes to produce 93M Lb Zn and 19.9M Lb Pb.

ON EXPLORATION

  • Tocvan Ventures Corp, and its partner Colibri Resources Corporation, announced new exciting targets generated by an IP survey on its Pilar project in Sonora. “According to the survey data, the Main Zone and the North Hill Zone may be connected and, if confirmed, would be renamed as a mineralization trend. Results also indicate the potential of the northeast-southwest structures connecting the 4-Trench Zone to the Main Zone, Tocvan said”. Geophysical results will be combined with additional surveys to better define drill targets for a phase 2 drilling campaign.
  • Kootenay Silver Inc., released drill results from six of ten holes completed to date at its Columba project in Chihuahua, as part of its 2020 drilling program. Significant drill intersections were encountered in hole CDH-20-045 with 239 g/t Ag, 0.08% Pb, and 0.4% Zn over 4.3m, including 350 g/t Ag, 0.1% Pb, and 0.5% Zn over 2.5m, and including 456 g/t Ag, 0.2% Pb and 0.6% Zn over 1.5m in the F Vein, and 208 g/t Ag, 0.1% Pb, and 0.2% Zn over 3m, including 974 g/t Ag, 0.03% Pb, and 0.3% Zn over 0.5m in a footwall vein; hole CDH-20-046 with 264 g/t Ag, 0.06% Pb, and 0.1%Zn over 6.8m, including 553 g/t Ag, 0.1% Pb, and 0.2% Zn over 2.9m, including 911 g/t Ag, 0.2% Pb, and 0.2% Zn over 1.4m, including 1,585 g/t Ag, 0.3% Pb, and 0.3% Zn over 0.6m, and 689 g/t Ag, 0.2% Pb, and 0.3% Zn over 0.5m, and 219 g/t Ag, 0.04% Pb, and 0.1% Zn over 5m, all in the F Vein; hole CDH-20-047 with 166 g/t Ag, 0.2% Pb, and 0.5% Zn over 15.65m, including 351 g/t Ag, 0.4% Pb, and 1% Zn over 5.97m, including 400 g/t Ag, 0.45% Pb, and 1.2% Zn over 4.97m, including 782 g/t Ag, 1.1% Pb, 3.6% Zn over 1.05, including 305 g/t Ag, 0.1% Pb, and 0.3% Zn over 1.15m, including 219 g/t Ag, 0.4% Pb, and 0.7% Zn over 1.1m, including 432 g/t Ag, 0.5% Pb, and 1% Zn over 0.97m; and hole CDH-20-042 with 115 g/t Ag over 0.3m in a hangingwall of a quartz vein, and 86 g/t Ag 0.02% Pb, and 0.1% Zn over 13m, including 111 g/t Ag, 0.03% Pb, and 0.1% Zn over 5.9m, in the F Vein. These holes tested the F Vein structure along 400 meters of strike length with holes 42 to 45 focusing on gaps in the 2019 drill program, while holes 46 and 47 were step outs along strike.
  • Vizsla Resources Corp., restarted its exploration and recommenced its 14,500m drilling programs at its Panuco project in Sinaloa. Vizsla has tested only five of the initially twenty targets and will continue with two drill rigs to ensure the remaining 10,861m of planned drilling is completed in the 2020 calendar year.

ON MINING

  • Mag Silver Corp., reported Q1, 2020 financial results. It estimated the pre-operative initial capital now at USD $440M as of January, 2018. The company also reported a development expenditure of approximately USD $153.5M (company therefore estimates approximately $286,584 of remaining initial capital on a 100% basis as at March 31, 2020), and an existing cash and other working capital as at March 31, 2020 of USD $6.8M and USD $13.2M respectively (Juanicipio project, Zacatecas).
  • Mexus Gold , reported addition gold sales from production at its Santa Elena mine in Sonora. It sold 47.5Oz Au on May 7th and was processing an additional 45 Oz Au the week of May 18th. Mexus announced that the sales of gold for the month of May are expected to exceed 120 Oz Au.
  • McEwen Mining Inc., reported full year 2019 production results from its El Gallo mine in Sinaloa. It produced 2,700 Oz AuEq (GEO) from residual leaching of the heap leach pad. Beginning with Q42019, the company has ceased relying on, and disclosing, cash costs and AISC per GEO as key metrics for El Gallo mine. Residual leaching will continue for as long as incremental revenue exceeds incremental costs.

ON FINANCING

  • Magna Gold Corp., announced a non-brokered private placement to raise gross proceeds of up to $7M. Net proceeds will be used for working capital purposes in connection with the company´s existing projects (Mercedes project, Sonora).
  • Discovery Metals Corp., announced that it intends to close a non-brokered private placement for gross proceeds of up to CAD $25M. Net proceeds will be used primarily to continue the exploration programs at its Cordero and Coahuila projects in Chihuahua and Coahuila respectively.
  • Mithril Resources Limited, announced that its rights issue for capital raising has closed with strong support for both shareholder entitlements and additional shortfall shares. The company was required to raise a minimum of $1.5M under the rights issue as a condition precedent of the transaction with Sun Minerals Pty Ltd. Fund raised will be used to advance exploration at its Copalquin project in Durango, following completion of the acquisition of Sun Minerals.

ON RESOURCES AND DEVELOPMENT

  • Endeavour Silver Corp., reported drill results from fourteen holes collared at its Bolaños mine in Guanajuato, eight of which intersected high-grade mineralization over minable widths in the Melladito Vein. Significant drill intersections were encountered in hole BN27 with 24.3 g/t Au and 787 g/t Ag (3,217 g/t AgEq) over a true width (TW) of 1.5m, including 91.8 g/t Au and 2,200 g/t Ag (11,380 g/t AgEq) over a true width of 0.20m; hole BN31 with 12.48 g/t Au and 50 g/t Ag (1,298 g/t AgEq) over a TW of 1.1m, including 50.8 g/t Au and 191 g/t Ag (5,271 g/t AgEq) over a TW of 0.2m; and hole BN32 with 7.37 g/t Au and 170 g/t Ag (907 g/t AgEq) over a TW of 2.7m, including 9.47 g/t Au and 327 g/t Ag (1,274 g/t AgEq) over a TW of 0.6m.”The eight drill holes outline a new mineralized zone 100 m long by 200 m deep, open in all directions. It could connect with the historic high-grade San Ramon mine workings immediately west of and the San Pablo mine workings immediately east of the drill holes. This part of the Melladito vein was not previously explored and represents an exciting new area for resource estimation and mine development”.
  • Mag Silver Corp., provided an update on its Juanicipio project in Zacatecas. Highlights include that a detailed engineering is near completion and earthmoving and foundation preparation is well advanced for the construction of the 4,000 tpd beneficiation plant; SAG and Ball mills, flotation cells, all associated vessels, thickeners and ancillary process equipment are now secured on site, progress made with the construction of the flotation plant and infrastructure, and underground development at Juanicipio has now approached 27 km (or 16.9 miles) and is focused on three sub-vertical ramps that descend alongside the mineralization and alongside the conveyor ramp to surface at plant site.
  • VanGold Mining Corp., announced plans to conduct a 1,000 tonnes bulk sample from its Pinguino project in Guanajuato. It entered in an agreement with Endeavour Silver and will be sending the bulk sample to Endeavour’s Bolañitos mill, located approximately 28kmfrom El Pinguico project. “By conducting this large test, the Company will gain valuable metallurgical and precious metal recovery information pertaining to the mineralized material on the El Pinguico property.

ON DEALS AND CORPORATE ISSUES

  • Alamos Gold Inc., announced results of its annual general meeting of shareholders. It also appointed and compensated executives and auditor´s remuneration (Mulatos mine, Sonora).
  • Argonaut Gold Inc., shareholders and Alio Gold Inc. securityholders, approved merger to create North American diversified intermediate gold producer. On closing of the transaction, Argonaut and Alio shareholders will own approximately 76% and 24% of the merged company, respectively, on an issued share basis. The merged company will continue as Argonaut Gold with the ticker symbol AR on the Toronto Stock Exchange (TSX). (El Castillo mine, Durango).
  • Equinox Gold Corp., announced results of its annual general meeting of shareholders. It also appointed auditors and approved executive´s compensation (Los Filos mine, Guerrero).
  • Defiance Silver Corp., announced that it has successfully negotiated with the project vendor its option agreement on its san Acacio project in Zacatecas. The project vendor has agreed to extend the option agreement terms by three years from September 27, 2020 to September, 27, 2023. “Defiance will now be making quarterly payments, over three years, to the property vendor totaling USD $2,278,189, with the final option payment of USD $2,407,461 due September 27, 2023. In accordance with the original agreement, the vendor retains a 2.5% NSR which may be purchased for USD $2,500,000. Should the agreement be terminated prior to September 27, 2023 a break fee equal to 5% of the outstanding option balance shall be paid to the property vendor”.
  • Silver Tiger Metals Inc., (former Oceanus Resources), commenced trading under the trading symbols “SLVR” on the TSXV. There was no change in the share capital of the company. Certificates representing common shares of the company will not be affected by the name and symbol change and will not need to be exchanged (El Tigre project, Sonora).
  • Sierra Metals Inc., announced the appointment of its new CEO effective immediately (Bolivar mine, Chihuahua).

ON SOCIAL RESPONSIBILITY

  • The Grupo Mexico Foundation, donated 5,000 molecular test for the detection of COVID-19 to be applied to patients from all over the state of Chihuahua. Governor of Chihuahua State, Javier Corral, stated that it will allow reducing the time of diagnosis and extending timely attention to the population. In addition, it also will donate 450,000 protection kits to be distributed in Mexico City as well as in the states of Mexico, Jalisco and Nuevo Leon. The kits are personal and contain supplies such as masks, gowns, hats, shoe covers, KN45 masks, gloves, goggles and everything necessary to promote the comprehensive protection of health personnel in hospitals.
  • Minera Gorrión (MG), subsidiary of Almaden Minerals Ltd., and in charge of developing the Ixtaca mine project, in the north of Puebla, donated 1,000 disinfecting gels and 2,000 masks to the Ixtacamaxtitlán Community Hospital, in charge of leading efforts against the epidemic in the region. On the other hand, 1,440 liters of gel and 4,800 face masks were distributed among 15 Rural Medical Units of the IMSS and 9 Health Houses of the Ministry of Health in the municipality. Likewise, MG delivered 1,300 liters of gel and 2,000 covers mouths to the Central Warehouse of Health Services in the state of Puebla to support the efforts led by the Puebla government to counteract the spread of the disease in the state.
  • Minera Media Luna (Torex Gold Resources Inc.), donated MXP $2M to launch a hospital in Iguala, Guerrero, which will exclusively treat patients with COVID-19. The hospital will be soon in operation and will also serve people from Taxco, Huitzuco, Tepecoacuilco and Cocula affected by the coronavirus.
  • Consorcio Minero Peña Colorada S.A. de C.V., donated MXP $500K to the Integral Development of the Family (DIF) of Colima State, to allocate it to the Emergent Food Attention Program, implemented by its government.

 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, phyllic alteration in a porphyry Cu system in a prospect in Oaxaca, Mexico.  Photo by Miguel A Heredia.

 

The Mining and Exploration News in Mexico: Highlights on the Third Week of February, 2020

IMG_1740 (2)

By Jorge Cirett

During the 8th week of the year (February 17th to February 23rd, 2020), at least 35 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, the Sonora Economy Secretariat remarked that several investments are to strengthen the mining industry in 2020. Camimex pointed that mining companies are to invest more than US$200 M in exploration during 2020. Grupo Mexico is to return to the government the mining concession on which the disaster struck Pasta de Conchos mine is located. Camimex is to pursue its “zero accidents” goal. ON EXPLORATION, in Sonora, Colibri Resources has received the permit to drill at the Evelyn project; Riverside Resources reported on field work and sampling at Los Cuarentas; Aloro received a new drilling permit for its Los Venados project. In Chihuahua, Kootenay Silver commenced the phase II drilling program at its Columba project. In Durango, Commander Resources reported on a geophysical survey at Pedro’s project. In Zacatecas, Excellon Resources informed on the exploration status of its Evolución project. In Guanajuato, Vangold secured land access and land use permits on its El Pinguico project. In Jalisco, GoGold Resources launched a second exploration project at Los Ricos District in Jalisco: Monte El Favor.  ON MINING, Starcore International, Americas Gold and Silver,  Torex Gold, First Majestic Silver, Pan American Silver and Fortuna Silver reported Q4 and full year 2019 financial and/or production results. ON FINANCING, Hecla Mining is to redeem $475 M of 7.25% senior notes. Canuc Resources, San Marco Resources and Ridgestone Mining closed various stages of non-brokered private placements for $850 K, C$784.8 K and $715.2 K, respectively. Kootenay Silver is now on the 2020 TSX Venture 50tm. ON RESOURCES AND DEVELOPMENT, Golden Minerals announced promising results from metallurgical test work on concentrates from its Velardeña property. Excellon informed on exploration results on its Platosa mine in Durango. SilverCrest Metals announced a new discovery of a high-grade zone on another vein of the Babicanora area of its Las Chispas property in Sonora. Coeur Mining and Alamos Gold reported mineral reserves and resources to the end of 2019, including figures from Palmarejo (Chihuahua) and the Mulatos District (Sonora), respectively. Goldplay Exploration provided an update on drilling at San Marcial, Sinaloa. ON DEALS AND CORPORATE ISSUES, Tamino Minerals filed a law suit against an individual, in Sonora. Telson informed on the resignation of its CEO, Jose Antonio Berlanga, and the appointment of Ralph Shearing as interim CEO. Sonoro financing discussions were interrupted by the Coronavirus outbreak in China. Mexican Gold and New Found Gold terminated their binding agreement for the acquisition of New Found Gold. GoGold entered into an agreement to acquire The Monte del Favor project in the Los Ricos District in Jalisco. ON SOCIAL RESPONSIBILITY. Fresnillo PLC supports three teams in a robotic regional fair. Grupo Mexico supports social and infrastructure projects in Sombrerete, Zacatecas, with over 300 activities that benefit 3,00 inhabitants. Fresnillo PLC and Frisco are among the companies that integrate the Environmental Protection Club in Zacatecas.).

ON MEXICO ISSUES

  • Jorge Vidal, head of Sonora’s Secretaría de Economía (Economy Secretariat), stated that several investments are to strengthen the mining industry during 2020 in Sonora. He pointed that the investment by Bacanora minerals in the lithium project in Bacadehuachi is one of these, and another one is the investment of the Buenavista zinc project in Cananea, which is to generate 500 jobs with the investment of MXN$350 M pesos (US$18.8 M).
  • Mining companies are to invest more than US$200 M in exploration in 2020. Fresnillo is to reduce its exploration budget to US$135.1 M, from US$150 M on 2019, with about half of those funds to be used in the conversion of resources to reserves. Pan American Silver focuses on brownfield exploration with a budget of US$20 M for the year, on which La Colorada Skarn is to see a 44,000 m drilling program. First Majestic has an exploration budget of US$28.2 M, to be spent in San Dimas (Durango), Santa Elena (Sonora), La Encantada(Coahuila), La Parrilla (Durango) and Del Toro (Zacatecas). Torex Gold is to conduct an infill drilling program that will cost US$13 M on its Media Luna project (Guerrero). Agnico Eagle is to spend US$33.9 M in exploration during 2020, highlighting the funding of the Santa Gertrudis project in Sonora with US$10.4 M and a 42,000 m drilling program at its Pinos Altos mine in Chihuahua.
  • Grupo Mexico is to return to the government the mining concession on which the Pasta de Conchos mine is located. The move is in response to the presidential request to facilitate the retrieval of the remains of over 65 miners deceased in 2006 on the mine located in Coahuila.
  • The Cámara Minera de México (Camimex) vowed to pursue the “zero accidents” goal, pointing that in 2018 the associated companies reported an accident rate of 1.63, which is 3.7% lower than in 2017, and below the national average of 2.04 registered by the Instituto Mexicano del Seguro Social (IMSS).

ON EXPLORATION

  • Excellon Resources Inc. informed on exploration of its 45,000 hectares Evolución property in Zacatecas. Highlights include the expansion of the Lechuzas zone along strike and down dip, and broad intersections of Ag-Pb-Zn, like: 18.7 m @ 27 gpt Ag, 0.8% Pb, 1.1% Zn, 0.1 gpt Au (103 gpt AgEq), including 2.0 m @ 105 gpt Ag, 3.5% Pb, 4.2% Zn, 0.3 gpt Au (416 gpt AgEq); 1.5 m @ 290 gpt Ag, 6.9% Pb, 5.9% Zn, 0.2 gpt Au (779 gpt AgEq); 4.5 m @ 51 gpt Ag, 1.9% Pb, 2.9% Zn, 0.1 gpt Au (244 gpt AgEq); 3.3 m @ 55 gpt Ag, 1.1% Pb, 1.9% Zn (172 gpt Ag). Excellon plans to incorporate all recent work into an updated mineral resource estimate for the project.
  • Kootenay Silver Inc. has commenced a 7,000 m phase II core drilling program at its Columba project in Chihuahua. The follow up drilling will focus on the results of last year’s 41-hole, 6,853 m program which targeted six different veins on the property. Highlighted results from that program comprise: 1.15 m @ 775 gpt Ag; 4.83 m @ 230 gpt Ag; 2.90 m @ 519 gpt Ag; 11.0 m @ 133 gpt Ag (including 5.0 m @ 245 gpt Ag); 2.1 m @ 699 gpt Ag; 1.75 m @ 755 gpt Ag, 1.16 gpt Au; 6.25 m @ 244 gpt Ag; 11.5 m @ 415 gpt Ag (including 4.0 m @ 721 gpt Ag); 4.63 m @ 301 gpt Ag; 39.9 m @ 159 gpt Ag (including 7.45 m @ 650 gpt Ag).
  • Colibri Resource Corp. informed it has received the required drilling permits for its Evelyn project in Sonora. Drill pad construction and other required infrastructure are to commence immediately, followed by drilling.
  • Commander Resources Ltd. reported results from a 70 line-km induced polarization survey (IP) at the Pedro’s project in Durango. The 1,750 ha project was acquired in 2006 from Bearing Resources Ltd. Hematite stained silica rich ridges of angular chalcedony fragments and silicified sedimentary rocks within an angular coarse breccia comprise the outcrops within the Ahuichila conglomerate, within a soil anomaly 4 Km by 1 km and rock chip samples of up to 2.3 gpt Au. Past drilling focused on a Carlin target intercepted up to 10.5 m @ 0.51 gpt Au in oxidized silicified conglomerate.
  • Vangold Mining Corp. has secured a surface land access agreement, and a surface land use agreement for its El Pinguico mine in Guanajuato. The 15-year land access agreement was signed with the Ejido Calderones, providing a short access route to the project, whereas the land use permit was signed with a local land owner for 89.6 hectares.
  • Riverside Resources Inc. reported on field work and sampling at its Los Cuarentas project in Sonora. Selective rock sampling from dumps, float, channel and rock chips returned five of sixteen samples with more than 5 gpt Au: 25.7 gpt Au, 4 gpt Ag; 10.2 gpt Au, 9 gpt Ag; 6.8 gpt Au, 65.1 gpt Ag, 6.27 gpt Au, 120 gpt Ag; 5.3 gpt Au, 6 gpt Ag; 5.1 gpt Au, 75 gpt Ag. Three primary targets have been identified for a prospective drill program in 2020: Santa Rosalia, Santa Rosalia Sur and El Sombrero.
  • GoGold Resources Inc. launched a second exploration project located on the Los Ricos District, called Monte del Favor, in Jalisco. Gogold now owns 35 concessions covering 22,493 hectares in a 35 km trend. The new concessions come with a legacy database of 50 drill holes with highlighted intercepts of: 24.4 m @ 6.4 gpt Au, 1,629 gpt Ag; 28.3 m @ 3.1 gpt Au, 150 gpt Ag; 6.1 m @ 1.1 gpt Au, 201 gpt Ag; 6.1 m @ 2.8 gpt Au, 174 gpt Ag; 20.3 m @ 0.4 gpt Au, 225 gpt Ag.
  • Aloro Mining Corp. informed a new drilling permit has been granted by SEMARANT (The Secretariat of Environment and Natural Resources) for its Los Venados project in Sonora. The permit granted the drilling of 15 holes and the construction of up to 3.38 Km of drill roads. Drilling is to focus in the south area of the project, where a hole cut 32 m of blind strong silicic alteration with brecciated vuggy silica an sulfides, with 7.6 m @ 1.13 gpt Au, 32 gpt Ag.

ON MINING

  • Starcore International Mines Ltd. released production results for the quarter ending on January 31, 2020. In its San Martin mine in Queretaro, 58.3 K tonnes were milled @ 1.84 gpt Au, 30 gpt Ag, recovering 90.1% Au, 50.9% Ag, to produce 3,425 Oz AuEq.
  • Americas Gold and Silver Corp. presented production figures from 2019 and guidance for 2020 of its mining operations, including figures from its Cosalá property in Sinaloa. At Cosalá, 613.8 K tonnes were processed @ 50 gpt Ag, to produce 572 K Oz Ag, 43.3 M Lb Zn and 16.4 M Lb Pb, or 4.68 M Oz AgEq, at cash cost ($18.31) and AISC ($10.90) per Oz Ag produced. Improved access to the Upper Zone at the San Rafael mine will tap higher silver grades in 2020.
  • Torex Gold Resources Inc. reported fourth quarter and fill year 2019 financial and operating results. For the last quarter of 2019, Torex Gold produced 121,151 Oz Au at its El Limón-Guajes mine in Guerrero, at cash cost $617 per Oz and all-in sustaining cost of $767 per Oz, generating EBITDA of $102.2 M and repaying $82.5 M of debt during the period. For the year, Torex produced 454,811 Oz Au at cash cost of $619 per Oz and an AISC of $805 per Oz Au, generating EBITDA of $330.3 M and repaying $164.4 M of debt. Total debt now stands at $174.9 M, while cash at hand is $161.8 M. The Media Luna project resource estimate was updated to 2.24 M Oz AuEq at a grade of 5.5 gpt Au in the indicated category and 4.23 M Oz AuEq at 4.23 gpt Au in the inferred category.
  • First Majestic Silver Corp. announced financial results for the Q4 and year 2019. During the quarter 626.6 K tonnes were processed to produce 3.35 M Oz Ag, 33,176 Oz Au, 0.9 M Lb Pb, or 6.23 M Oz AgEq at cash cost $3.37 per Oz and an AISC of $12.25 per Oz. The production figures for the year are in the table below. The company ended 2019 with cash and cash equivalents of $169 M. First Majestic production 20191
  • Pan American Silver Corp. reported financial results for the year 2019, including figures from its Mexican operations. At La Colorada mine in Zacatecas 768.7 K tonnes were milled @ 361 gpt Ag, 3.10% Zn, 1.65% Pb to produce 8.2 M Oz Ag, 4.61 K Oz Au, 20.97 K tonnes Zn, 11.15 K tonnes Pb, at cash cost $4.30 and AISC of $5.00 (net of by-products). At Dolores, in Chihuahua, 6.78 M tonnes were place on the heaps @ 38 gpt Ag, 0.60 gpt Au, to produce 5.1 M Oz Ag, 117.6 K Oz Au at a cash cost of $3.09 and an AISC of $15.45.
  • Fortuna Silver Mines, Inc. provided 2020 production, cost and capital expenditure guidance for 2020, including figures for its Mexican operations. At San Jose, in Oaxaca, the company aims to produce between 6.6 and 7.3 M Oz Ag, and between 41 and 45 K Oz Au, at a cash cost of US$65.6 to US$72.5 per tonne, and an AISC between US$9.6 to US$11,7 per Oz AgEq. The plan is to process 1.06 M tonnes @ 223 gpt Ag, 1.39 gpt Au, with a capital investment of US$17.1 M, including US$12.2 M for sustaining capital expenditures and US$4.9 M for brownfields exploration programs which include 17,600 m of drilling.

ON FINANCING

  • Hecla Mining Co. announced its agreement to sell $475 M aggregate principal amount of 7.25% senior notes. The notes will mature in February 2028, with the company intending to use the net proceeds together with cash on hand to redeem all of its outstanding 6.875% senior notes due 2021. (San Sebastián, Durango).
  • Canuc Resources Corp. closed a non-brokered private placement for gross proceeds of $850 K, with three officers of the company participating (San Javier, Sonora).
  • San Marco Resources Inc. closed its over-subscribed non-brokered placement, raising C$784.8 K (Espiritu, Sonora).
  • Ridgestone Mining Inc. closed the first tranche of the non-brokered private placement to raise $715.2 K on gross proceeds (Rebeico, Sonora).
  • Kootenay Silver Inc. has been recognized in the 2020 TSX Venture 50tm as one of the top 50 performing companies on the TSX Venture Exchange (Columba, Chihuahua).

ON RESOURCES AND DEVELOPMENT

  • Golden Minerals Co. announced promising results of metallurgical test work on pyrite-arsenopyrite flotation concentrates from its Velardeña properties in Durango. “Gold and silver recoveries of 91% and 92%, respectively, were obtained from cyanide leaching of the bio-oxidized concentrate samples. BIOX* achieved 93% oxidation on the concentrate sample in batch tests, which the Company believes should translate to a 5 to 6-day retention time in a commercial bio-oxidation plant”.
  • Excellon Resources Inc. informed on exploration results at its Platosa mine in Durango. Surface drilling of the NE-1S manto returned high-grade intersections, like 6.6 m @ 1,178 gpt Ag, 6.7% Pb, 8.4% Zn, 0.2 gpt Au. A large hydrothermal system was discovered 11 km from the Platosa mine at the Jaboncillo target, where drilling is aimed to start in the first half of 2020.
  • SilverCrest Metals Inc. announced a new discovery and additional drill results from the Babicanora Norte vein at its Las Chispas property in Sonora. The discovery drill hole intercepted 2.0 m (tw) @ 6,418 gpt AgEq on a faulted extension that received the name of Area 200, on the Babicanora Norte vein, which is now the highest-grade vein in the project. The initial high-grade footprint of this zone is 500 long by 125 m in height, on the vein that is now known for more than 2.0 km. The area 200 shows an average estimated true width (tw) of 1.5 m @ 16.11 gpt Au, 2,166 gpt Ag (3,375 gpt AgEq). Highlighted results for this press release comprise 1.4 m @ 90.22 gpt Au, 9,422 gpt Ag (16,189 gpt AgEq); 2.4 m @ 45.71 gpt Au, 5,577 gpt Ag (9,006 gpt AgEq); 1.6 m @ 75.78 gpt Au, 7,662 gpt Ag (13,345 gpt AgEq).
  • Coeur Mining Inc. reported 2019 mineral reserves and resources, including figures from its Mexican operations. At Palmarejo, in Chihuahua, infill drilling helped replace mining depletion. Proven and probable reserves stand at 11.67 M short tonnes (st) @ 1.83 gpt Au, 135 gpt Ag; measured and indicated resources stand at 8.76 M st @ 1.49 gpt Au, 122 gpt Ag and inferred resources of 6.47 M st @ 1.77 gpt Au, 127 gpt Ag. These amount to 693 K Oz Au, 5.6 M Oz Ag as reserves, 425 K Oz Au, 34.5 M Oz Ag as measured and indicated resources and 367 K Oz Au, 26.3 M Oz Ag as inferred resources.
  • Minera Peña Colorada informed that the Peña Colorada mine in Colima received the visit of PROFEPA (Procuraduría Federal de Protección al Ambiente) and SEMARNAT (Secretaría de Medio Ambiente y Recursos Naturales) personnel to review the compliance of the company on the different permits it has received.
  • Alamos Gold Inc. Reported mineral reserves and resources to year end 2019, including figures from its Mexican Operations. Mineral reserves at Mulatos decreased by 154 K Oz to 1.56 M Oz, with mining depletion partially offset by an 81 K Oz increase at La Yaqui Grande. The exploration budget was increased to $7 M with 14,000 m of drilling planned around near mine targets as well as at La Yaqui Grande and El Carricito. A number of regional exploration targets were identified with the aid of a VTEM survey carried out in 2018.Alamos Gold Mineral Resources to 201911
  • Goldplay Exploration Ltd. provided an update on exploration and drilling of its San Marcial project in Sinaloa. The last holes of 2019 returned 28.7 m @ 92 gpt Ag, including 13.75 m @ 154 gpt Ag in the Faisanes target. At the Guacamayo target 0.60 m @ 138 gpt Ag, 0.56 gpt Au, confirm mineralization 30 m east of the current resource area. Due diligence has commenced on the potential acquisitions of the Plomosas (First Majestic Silver Corp.) and La Trinidad (Mako Mining Corp.).

ON DEALS AND CORPORATE ISSUES

  • Tamino Minerals Inc. has filed a law suit against an individual in Sonora. (El Volcán, Sonora).
  • Newmont Corp. appointed Jim Cooper as General Manager of the Peñasquito unit in Zacatecas.
  • Telson Mining Corp. informed its Chief Executive Officer and member of the Board of Directors, Jose Antonio Berlanga, has resigned due to personal reasons. Mr. Ralph Shearing has been appointed as Interim Chief Executive Officer for the company (Campo Morado, Guerrero).
  • Sonoro Metals Corp. informed discussions regarding debt finance and engineering, procurement and construction contracts with China-based EPC companies has been postponed due to the COVID-19 outbreak (Cerro Caliche, Sonora).
  • Mexican Gold Mining Corp. announced, along New Found Gold Corp., that they have mutually terminated the binding agreement to acquire all of the issued and outstanding shares of NFGC (Las Minas, Veracruz).
  • GoGold Resources Inc. entered into an agreement to acquire a second project located on the Los Ricos District, called Monte del Favor, in Jalisco. The agreement is to acquire 49% of 5 concessions in consideration for US$225 K, and an option to acquire the remaining 51% by paying US$210 K on the second anniversary. The seller will retain 1% NSR on the property, which the company may repurchase by paying US$1 M.

ON SOCIAL RESPONSIBILITY

  • Fresnillo PLC supports science, technology and youthful innovation. As part of the regional robotic fair “FIRST” on the La Laguna region, Fresnillo is to support three teams. The sponsored teams are from Turuachi, Chihuahua, Ciénega de Nuestra Señora, Durango and Fresnillo, Zacatecas. One other team from Caborca, Sonora, is to participates in an international competition in Arizona.
  • Grupo Mexico supports social and infrastructure projects in Sombrerete, Zacatecas. Every year the company performs 300 activities that benefit 3,000 inhabitants. The social programs and productive activities take place in Sombrerete, San Martin, Villa Insurgentes, Ojo de Agua, Charco Blanco, Santa Rita and José de Félix communities. Also, a seed-capital program has financed 29 projects to benefit 20 schools.
  • Peñoles, Fresnillo PLC, and Grupo Frisco among the companies to integrate the Environment Protection Club in Zacatecas. More than 25 companies are to be members of this club, promoted by the State governor, and that will also have universities (Benemérita Universidad Autónoma de Zacatecas and Instituto Politécnico Nacional), the Secretaría de Agua y Medio Ambiente and federal authorities as its memebers.

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

On the image below: The old train bridge between Nacozari and the Pilares mine, in Sonora, picture by Jorge Cirett

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The Mining and Exploration News in Mexico: Highlights on the Third Week of December, 2019.

Phyllic alteration

By Miguel A Heredia

During the fifty-one week of the year (December 16th to December 22th, 2019), at least 28 press releases were announced by companies working in Mexico, with nine announcing financial rounds, seven disclosing deals and corporate issues, five discussing social issues, four reporting on resources and developments of their properties, two communicating production and financial results, and one commenting on Mexican issues.  ON MEXICO ISSUES, Mexico mining production showed signs of recovery. ON EXPLORATION, no relevant news. ON MINING, Starcore presented production and financial results for the second quarter ended October31, 2019 from its San Martin mine in Queretaro. Premier provided a year end operations update (Mercedes mine, Sonora).  ON FINANCING, Defiance extended its loan until December 21, 2020 for a balance of $1.2 M (San Acacio project, Zacatecas). Alamos Gold announced renewal of a normal course issuer bid, and an increase of a credit facility from USD $400M to USD $500M (Mulatos mine, Sonora). Orla finalized a credit agreement for USD $125M for the development of its Camino Rojo project in Zacatecas. First Mining closed a non-brokered flow-through equity financing for $2M (San Ricardo project, Sonora).  SilverCrest closed a CAD $92M bought deal financing, including CAD $12M over allotment option exercised in full (Las Chispas project, Sonora). Golden Minerals sold two non-strategies Mexican exploration properties to Industrias Peñoles for $3M. Mexus paid off two loan agreements which were coming due (Santa Elena mine, Sonora). Mithril announced its plan to raise up to A$4.9M by way of an entitlement issue to shareholders (Copalquin project, Durango). ON RESOURCES AND DEVELOPMENT, Argonaut presented a positive PFS for its Cerro Del Gallo project in Guanajuato, and increased company´s mineral reserves by 48%. Coeur provided an update on its exploration program at Palmarejo mine in Chihuahua. Azure commenced a 7,000m RC resource expansion drilling at its Loma Bonita deposit in Sonora. Industrias Peñoles commenced extraction and grinding tests at its Capela mine (former Rey de Plata mine) in Teloloapan, Guerrero. ON DEALS AND CORPORATE ISSUES, Discovery Metals announced the appointment of its new VP of Corporate Development and Investor Relations (Cordero project, Chihuahua). Equinox Gold and Leagold entered into a definitive agreement to combine in an at-market merge (Los Filos mine, Guerrero). Goldplay entered into a letter of intent agreement with Mako Mining Corp., to acquire 100% of the shares of Marlin Gold Mining Ltd. (San Marcial project, Sinaloa). Oroco presented results from its special annual general meeting for shareholders (Santo Tomás project, Sinaloa). Prize Mining announced the resignation of its CEO and the appointment of its replacement (Manto Negro project, Coahuila).   Mithril entered into an exclusive option agreement to acquire all the issued share capital of Sun Minerals Pty Ltd., which holds an exclusive option to earn up to 100% interest in the high grade Copalquin Au & Ag project in Durango.    ON SOCIAL RESPONSIBILITY, Zacatecas Mining Cluster held its second Talent Meeting with participation greater than the 30 people who previously registered to participate in the event. Ladies Committee of the AIMMGM and Outlet Minero promoted the environmental education in Zacatecas. Grupo Mexico participated in the conference of preventive culture in San Luis Potosi. Minera Peñasquito held Christmas celebration in Mazapil, Zacatecas. It also informed about the progress of the social programs that the mining company performs in the 25 communities of direct influence.

 ON MEXICO ISSUES

  • Mexico mining production, showed signs of recovery, at a time when companies move forward with their efforts to face the problems that hinder operations in a series of large mines. General production increased 1.0% in October compared to the same month last year, led by increases in Pb, Zn, and Ag, according to the INEGI statistics agency. The October increase was largely due to the improvement experienced by three metals. Pb production increased 22.7% to 26.1M Lb, Zn production rose to 12.2% to 78.5M Lb, and Ag production rose to 11.6% to 10.3M Oz. The hike occurs despite a major disruption during October at the Peñasquito mine in Zacatecas, one of Mexico’s largest producers of Au, Ag, Pb, and Zn.

ON EXPLORATION

  • No relevant news.

ON MINING

  • Starcore International Mines Ltd., presented production and financial results for the second quarter ended October 31, 2019 from its San Martin mine in Queretaro. It milled 54,100 tonnes of 1.78 g/t Au and 34 g/t Ag to produce 2,700 Oz Au and 31.1K Oz Ag (3,100 Oz AuEq), at a cash cost of USD $71 per tonne milled or USD $1,259 per Oz AuEq, and AISC of USD $1,527 per Oz AuEq Starcore had Au & Ag sales of CAD $ 5.8M, a loss of CAD $1.1M, or CAD $0.02 per share, and an EBITDA of (CAD $342) for the six months period ended October 31, 2019.
  • Premier Gold Mines Limited, provided a year-end operations update. The company reported that the successful 2019 drill campaign resulted in the discovery of higher-grade zones located near existing mine workings, and plans are emplaced to benefit from them. Also, it plans to enter in identified near-mine areas in the Lupita extension and Marianas in order to multiple the numbers of headings and stopes, allowing for more flexibility and increased production. At the end of Q3, 2019, year-to-date mine production totaled 47.6K Oz Au and 146.5K Oz Ag, with total co-product cash costs of $973 per Oz Au and co-product AISC of $1,226 per Oz Au.

ON FINANCING

  • Defiance Silver Corp, announced that it has extended the loan for an additional year until December 21, 2020, with a reduction of $500K. The balance on extension is $1.2M at a rate of 10% per year (San Acacio project, Zacatecas).
  • Alamos Gold Inc., announced its intention to make a normal course issuer bid permitting Alamos to purchase for cancellation up to 28.7M class A common shares, representing 10% of the company´s public float of the common shares as of December 11, 2019, being 287.3M common shares issued and outstanding. The price for any repurchased common shares will be the prevailing market price at the time of the purchase. All common shares purchased by Alamos will be cancelled. In addition, the company increased the size of a credit facility from USD $400M to USD $500M on more favourable terms. “The increase in our facility on more attractive terms is a reflection of the increased scale of Alamos as well as our strong operating and financial outlook. Combined with our existing cash, this further strengthens our financial flexibility with no debt and nearly US$700 million of available liquidity,” said Jamie Porter, Chief Financial Officer (Mulatos mine, Sonora).
  • Orla Mining Ltd., finalized a credit agreement for USD $125M for the development of its Camino Rojo project in Zacatecas. The credit comprises three tranches: an initial tranche for USD $25 M once the agreement is closed and two subsequent tranches for USD $50M each available once Orla satisfies certain conditions, including the receipt of key permits required for the development of Camino Rojo. After the closing of the credit facility, the board of directors has approved the start of construction spending at Camino Rojo, allowing the continuation of detailed engineering and the ordering of long lead items, such as the crushing system. Commencement of project construction has also been approved, subject to receipt of all required permits. By the way, SEMARNAT has granted to Orla the approval of the change of land use permit, one of the two key permits required for the development of its project.
  • First Mining Gold Corp., closed a non-brokered flow-through equity financing for $2M. Gross proceeds will be used to fund exploration programs of their mining properties (San Ricardo project, Sonora).
  • SilverCrest Metals Inc., closed a CAD $92M bought deal financing, including CAD $12M over allotment option exercised in full. Gross proceeds will be used to continue the exploration and development of its Las Chispas project in Sonora.
  • Golden Minerals Company, sold two non-strategies Mexican exploration properties to Industrias Peñoles for $3M. The Mogotes and Pistachon properties are located near the Velardeña mine in Durango. None of the claims contain any identified mineral resources. The cash received will be used to advance key exploration projects in Mexico and Nevada.
  • Mexus Gold US, paid off two loan agreement which were coming due. The company does not have the funds to hire additional crew to run all aspects of the mine continuously, so it is seeking the necessary funds by selling a portion of its non-producing properties, selling equipment not needed at the mine site, and/or funding from its shareholder base. It also is considering selling a small royal interest in its Santa Elena mine in Sonora.
  • Mithril Resources Ltd., announced its plan to raise up to A$4.9M by way of an entitlement issue to shareholders. Net proceeds will be used to complete a drilling program at Copalquin project, Durango, and to continue work on the company´s existing projects.

ON RESOURCES AND DEVELOPMENT

  • Argonaut Gold Inc., presented a positive PFS for its Cerro Del Gallo project in Guanajuato. It increased company´s mineral reserves by 48%, and measured and indicated Au mineral resources by 36%. The project has 91,754,000 tonnes of 0.56 g/t Au, 13 g/t Ag, and 0.09% Cu to contain a total of 1.64M Oz Au, 39.1M Oz Ag, and 192.15M Lb Cu. Metallurgical recoveries are 60%, 53%, and 43% respectively. Cerro Del Gallo is a low-cost asset, with estimated cash cost of $597 per Oz Au sold and AISC of $677 per Oz Au sold. The project has an after-tax internal rate of return of $20% and a NPV at a 5% discount rate of $175M, assuming metal prices of $1,350 for Oz Au and $16.75 for Oz Ag. Argonaut plans to produce as an average 64K Oz Au, 1.3M Oz Ag, and 5.4M Lb Cu per year, and has estimated a life of mine of 15.5 years.
  • Coeur Mining Inc., provided an update on its exploration program carried out at its Palmarejo mine in Chihuahua, which has been focused on resource expansion drilling. Highlights from the 2019 drilling campaign at Palmarejo includes positive infill results at the western and southern portions of the Guadalupe mine complex, including hole DC3-ZPA-0010 with 12.8 g/t Au and 1,047 g/t Ag over 5.7m; new resource expansion intercepts from the northern portion of the Independencia mine complex, including hole VIDH-120, with 1.5 g/t Au and 179 g/t Ag over 9.3m; and new resource expansion intercepts from the northeastern most portion of the Independencia mine complex, with hole BVDH-039 with 1.1 g/t Au and 165 g(/t Ag over 5m. “Coeur’s geologic team also expanded its footprint in the district by mapping and sampling exposures of new veins southwest and northeast of the two underground mining complexes as well as new veins west and east of the legacy open pit mine. Coeur expects to seek drill permits for several new areas in 2020 based on positive surface trace-element geochemistry and alteration results”.
  • Azure Minerals Limited, commenced a 7,000m RC resource expansion drilling program at its Loma Bonita deposit in Sonora, where a channel sampling in a road returned 3.6 g/t Au over 35.5m. Alacran project includes Mesa de Plata and Loma Bonita deposits. Initial focus is on growing the Alacran Au & Ag resource of 32.2M Oz Ag and 150K Oz Au. Loma Bonita deposit is open for expansion in most directions with good drill intersections of Au including hole MDPC-131 with 2.8 g/t Au and 33 g/t Ag over 47m; hole MDPC-096 with 1.6 g/t Au and 21 g/t Ag over 67m; and hole MDPC-102 with 1.1 g/t Au and 89 g/t Ag over 44m. In addition, Azure is continuing to undertake reconnaissance and follow-up work throughout the Alacran project where first pass surface sampling of historical dumps returned high grades of Au-Ag and base metals with maximum values of 24.1 g/t Au, 3,675 g/t Ag, 33.5% Pb, 21% Zn, and 2.3% Cu.
  • Industrias Peñoles S.A.B.de C.V., commenced extraction and grinding tests at its Capela mine (former Rey de Plata mine) in Teloloapan, Guerrero. Capela mine is expected to begin operations in 2020 with a daily production of 4,500 tonnes per day. According to the general director of Industrias Peñoles, Fernando Alanís Ortega, the mine located in Teloloapan required an investment of USD $340M.

 ON DEALS AND CORPORATE ISSUES

  • Discovery Metals Corp., announced the appointment of its new VP of Corporate Development and Investor Relations (Cordero project, Chihuahua).
  • Equinox Gold Corp., and Leagold Mining Corporation, entered into a definitive agreement to combine in an at-market merge, creating one of the top Au producing companies operating entirely in the Americas. The combined entity will continue as Equinox Gold. “Pursuant to the Transaction, Leagold shareholders will receive 0.331 of an Equinox Gold share for each Leagold share held (the “Exchange Ratio”). This implies at-market consideration of C$2.70 per Leagold common share, using closing prices for both Equinox Gold and Leagold common shares on the Toronto Stock Exchange on December 13, 2019. At closing, existing Equinox Gold and Leagold shareholders will own approximately 55% and 45% of the merged company, respectively, on an issued share basis”. (Los Filos mine, Guerrero).
  • Goldplay Exploration Ltd., entered into a letter of intent (LOI) agreement with Mako Mining Corp. to acquire 100% of the shares of Marlin Gold Mining Ltd. (San Marcial project, Sinaloa). Marlin owns, amongst other assets, Oro Gold de Mexico, S.A. de C.V. , a Mexican company that owns the La Trinidad mine facilities, currently being decommissioned. Oro Gold also controls 100% of nine concessions totaling 104,094.5 ha located adjacent to Goldplay’s existing portfolio in the historic Rosario gold-silver Mining District, Sinaloa, Mexico. “Under the LOI, upon payment of $50K by Goldplay to Mako the parties have agreed to a binding exclusivity and non-solicitation period from the signing of the LOI until December 31, 2020, or such later date as the parties may agree, which is binding on the parties. Exclusivity will otherwise terminate on the early of the completion of the proposed acquisition or earlier termination of the LOI or the definitive agreement, as the case may be”. The terms of the transaction are subject to negotiation and will include a nominal cash payment to Mako and the issuance of a small NSR royalty to Mako on the concessions currently owned by Oro Gold. Goldplay will assume all remaining tax liabilities of Oro Gold.
  • Oroco Resource Corp., presented results from its special annual general meeting of shareholders (Santo Tomás project, Sinaloa).
  • Prize Mining Corporation, announced the resignation of its former CEO and the appointment of the new CEO (Manto Negro project, Coahuila).
  • Mithril Resources Limited, entered into an exclusive option agreement to acquire all the issued share capital of Sun Minerals Pty Ltd., which holds an exclusive option to earn up to 100% interest in the high grade Copalquin Au & Ag project in Durango. Copalquin contains 32 known historic Au and Ag underground mines including the La Soledad and El Refugio mines. Historic drilling highlights project’s exploration potential with multiple high-grade drill intercepts including hole UC-03 at el Cometa mine with 45.16 g/t Au and 118 g/t Ag over 17.77m; hole UC-024 at El Refugio mine with 6.54 g/t Au and 140 g/t Ag over 7.9m; and hole MP-07-101 with 28.99 g/t Au and 2,350 g/t Ag over 4.53m.

ON SOCIAL RESPONSIBILITY

  • The Zacatecas Mining Cluster (CLUSMING), held its second Talent Meeting with participation greater than the 30 people who previously registered to participate in the event. The goal of the Talent Meeting is to identify personnel with the skills and attitudes necessary for certain companies in the mining industry (mines and suppliers or contractors), and be part of a talent group that can be subsequently hired by companies, according to their profiles.
  • The Ladies Committee of AIMMGM and Outlet Minero, promoted the environmental education in Zacatecas. Attendees gave a brief talk to the groups about culture for sustainable development, highlighting the importance of carrying out actions such as recycling and reusing objects to make new creations at school and at home. Likewise, about the importance of mining and its presence in objects such as pencils, benches, blackboards, among others, that makes everyday life possible. In this context, the Outlet Minero team organized a Christmas tree contest made with recycling and reused material.
  • Grupo Mexico, promoted preventive measures against hydro metereologic phenomena in San Luis Potosi during the conference of preventive culture. Some emergency brigade collaborated in the event with five members, who gave prevention talks with the community of San Luis Potosí and made a demonstration with a fire truck and own safety equipment. SEMARNAT, Civil Protection, and San Luis Potosi Fire Department participated in this conference of preventive measures.
  • Minera Peñasquito, held Christmas celebration in Mazapil, Zacatecas, where the company distributed thousand of toys in 25 communities belonging to the mine´s area of influence. “Minera Peñasquito is not just about removing the ore, about removing the Au. The responsible mining that we want to do cannot work without working with the community. For us being part of the community is a priority, throughout the year, with social investment, entrepreneurship or infrastructure works. It’s fundamental, “said Nelson Núñez, sustainability manager at Newmont-Goldcorp”.
  • Minera Peñasquito, informed to the community leaders about the progress of the social programs that the mining company performs in the 25 communities of direct influence. Among the programs to be reported, the rehabilitation of houses in Nuevo Peñasco was highlighted in infrastructure, which benefited 22 people from that community, as well as maintenance of roads in Santa Rosa, Cuitláhuac, La Mejorada, Charcos, Cedros y Mesas, as well as the maintenance and operation of wells for human consumption in El Vergel and plants and wells in Mesas, Cedros y Charcos. Regarding social responsibility, the company informed about the project “Together We Left a Legacy” that improves the conditions of educational, social infrastructure and promotes sports. This year furniture was delivered to 17 schools to benefit 1,137 students, as well as Ejidos to benefit 310 people. There was talk of Peñasquito Open Doors, a program that offers guided tours so that members of neighboring communities know about the mining operation. 71 sports academies were also held, supporting 70 teams, with 1,224 beneficiaries where 830 uniforms were delivered. Another important item is the educational scholarships, which grant economic incentives to students from primary to university. There are two types of scholarships: by agreement, which in 2019 allowed the delivery of 411 supports, and scholarships of excellence, which is open call and that this year, benefited 192 students. For the entrepreneurs there is the “Ideas con Valor program”, for the creation and strengthening of micro businesses, which supported 120 families with the participation of 300 people. Through the ‘Local Employment Program”, 765 people from the communities surrounding the operation have been hired, who through specific training were able to develop the capabilities required for the mining operation.

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, phyllic alteration in an IOCG project in Jalisco, Mexico. Photo by Miguel A Heredia.

The Mining and Exploration News in Mexico: Highlights on the First Week of November, 2019.

Mn oxide-calcite fault vein-bx

By Miguel A Heredia

During the forty-five week of the year (November 4th to November 10th, 2019), at least 37 press releases were announced by companies working in Mexico, with nine communicating production and financial results, eight disclosing deals and corporate issues, six announcing financial rounds, five informing on exploration results, four reporting on resources and development of their projects, three commenting on Mexican issues, and two discussing issues on social responsibility.  ON MEXICO ISSUES, according to the Director of Mines of Zacatecas, there are five new mine projects in the state to be developed in 2020. Newmont-Goldcorp restated the dialogue process with the Cedros community on its Peñasquito mines in Zacatecas. Local communities and small local merchants expressed their support for the continuity of the Peñasquito mine. ON EXPLORATION, In Sonora, Silver Viper mobilized an exploration crew to its Virginia project to commence a drilling program at the El Rubi target area, and Oceanus reported underground and surface sampling results from its El Tigre project. In Sinaloa, Vizsla reported underground sampling from its Panuco-Copala project.  In Zacatecas, Advance Gold outlined a km long by 400-500m wide chargeability anomaly at its Tabasqueña project. In Jalisco, GoGold released drill results from 4 holes collared at its Los Ricos project.  ON MINING, Alio Gold, Argonaut, Coeur, Endeavour, Excellon, First Majestic, Hecla, Leagold, and Pan American presented Q3 2019 production and financial results from its Mexican operations.  ON FINANCING, Discovery Metals closed a non-brokered private placement for gross proceeds of $19M (Cordero project, Chihuahua). Goldplay closed a brokered private placement for $3M (San Marcial project, Sinaloa).Solaris Copper announced its intention to undertake a non-brokered private placement to raise gross proceeds of up to  CAD $5.5M (La Verde, Michoacan). Advance Gold closed the first tranche of a non-brokered private placement for gross proceeds of $113K (Tabasqueña project, Zacatecas). Orex announced that intends to undertake a non-brokered private placement to raise gross proceeds of up to $1M (Sandra-Escobar project, Durango). San Marco revised its previously announced non-brokered private placement and now intends to rise gross proceeds for up to CAD $376.6K. It also closed subscription books for unit and flow through shares private placement for gross proceeds of CAD $40K (Chunibas project, Sonora). ON RESOURCES AND DEVELOPMENT, Capstone announced high grade Cu-Ag results from 103 infill and step-out drill holes at its Cozamin mine in Zacatecas. Vizsla closed its option agreement to acquire 100% interest of Panuco-Copala project in Sinaloa. Torex extended mineralization 150m below current reserves at its El Limon Deep deposit in Guerrero. Mexus announced that its Merrill Crowe Au recover plant is complete and operational at its Santa Elena mine in Sonora. Mag Silver informed about the activities carried out at its Juanicipio project mine development in Zacatecas during Q3, 2019. ON DEALS AND CORPORATE ISSUES, Colibri received TSX approval for its acquisition of Yaque Minerals (Mezquite and Jackie projects, Sonora). Vizsla closed its option agreement to acquire 100% interest in Panuco-Copala property in Sinaloa. Great Panther announced the appointment of its VP Exploration and VP People & Culture (Topia mine, Durango). Solaris Copper announced management changes of its team (La Verde project, Michoacan). Starcore presented results from its annual general meeting of shareholders (San Martin mine, Queretaro). Mako Mining provided a corporate update and status of its Mexican operation. Compañía Minera Cuzcatlán, a subsidiary of Fortuna Silver Mines revealed that it is analyzing to invest in a new plant in Mexico (San Jose mine, Oaxaca). Minera Autlán announced its intention to raise its commitment to gold (Lluvia de Oro-La Jojoba, Sonora). ON SOCIAL RESPONSIBILITY, Agnico Eagle participated in the reconstruction of the drinking water system at Yepachi, Chihuahua, with a total investment of MXP $4M. Argonaut participated in multiple social programs related to their Mexican operations.

ON MEXICO ISSUES

  • The Secretariat of Economy in Zacatecas, through its Director of Mines, revealed that new five mines will be developed in the state in 2020, standing out Juanicipio in Fresnillo, Camino Rojo in Mazapil , and San Nicolas in Villa Garcia municipalities. Zacatecas is one of the most prolific areas for mining in the country; however, he is aware of the social problems faced by some of the mining companies which operate in the state. He informed that the local government seeks to generate the conditions for mining companies to invest safely in new projects.
  • Newmont-Goldcorp Corporation, restated the dialogue process with the community of Cedros, municipality of Mazapil on Peñasquito mine. A new agreement was signed for the community delegates, with a strong commitment of both parties, by the community not to block again the mine and from the company to attend on time the concerns and proposal from the Ejido.
  • Local communities and small local merchants, expressed their support for the continuity of Peñasquito mine. The communities of Cedros, El Rosario, La Pardita, Sábana Grande, Tanquecillos, Tecolotes, Mazapil and El Trigo said they are in favor of the Peñasquito Mine, stating that it has provided benefits to their families. At a press conference, representatives of the aforementioned communities reported that thanks to the company they have work, so they asked the state government to support them and that, through the dialogue avoids a new block. They affirmed that they are against the blockades and the definitive closure of the mine, since this one supports around 25 communities. They said the mining company has provided a source of work to the people of the communities and do not want it to disappear.

ON EXPLORATION

  • Silver Viper Minerals Corp., mobilized an exploration crew to its Virginia project in Sonora to commence a phase II drilling program at El Rubi target area, where previous drilling carried out in 2018 intersected 3.18 g/t Au and 228 g/t Ag (6.42 g/t AuEq) over 6m of true width. Phase II will test the extension of this structure along trend and at depth on 50m sections with the aim of generating enough information for maiden resource estimation at El Rubi.
  • Oceanus Resources Corporation, presented underground and surface sampling results from the Caleigh, Canon Combination and Protectora Veins at its El Tigre project in Sonora. In the Caleigh Vein, underground channel sample ETU-1007 returned 1,896 g/t Ag and 6.4 g/t Au (2,376 g/t AgEq) over a true width of 0.50m, and ETU-1006 returned 1,971 g/t Ag and 4.64 g/t Au (2,318 g/t AgEq) over a true width of 0.50m. In the Canon Combination Vein, underground channel sample ETU-1012 returned 1,794 g/t Ag and 0.25 g/t Au (1,813 g/t AgEq) over a true width of 0.50m. In the Protectora Vein, underground channel sample returned 378 g/t Ag and 2.01 g/t Au (529 g/t AgEq) over a true width of 0.50m. Surface samples collected on this vein reported 374 g/t Ag and 3.32 g/t Au over 0.7m wide; 192 g/t Ag and 0.57 g/t Au (235 g/t AgEq) over 0.5m wide; and 169 g/t Ag and 1.0 g/t Au (244 g/t AgEq) over 0.50m wide. “The results from the mapping and sampling of the underground workings and at surface present a series of high priority drill targets over a 2 kilometer strike length north of the old El Tigre Mine, which we intend to drill.”
  • Vizsla Resources Corp., reported encouraging underground sampling results from its Panuco-Copala project in Sinaloa. Highlights results from the underground sampling at the San Carlos mine are 5.65 g/t Au and 612 g/t Ag (1,120 g/t AgEq) over  6m on development level 4, including 10.5 g/t Au and 1,120 g/t Ag (1,960 g/t AgEq) over 3m; 2.55 g/t Au and 517 g/t Ag (721 g/t AgEq) over 4.5m on development level 5, including 3.51 g/t Au and 721 g/t Ag (1.002 g/t AgEq) over 3m; and 2.12 g/t Au and 298 g/t Ag (468 g/t AgEq) over 5.5m on development level 4, including 3.76 g/t Au and 591 g/t Ag (892 g/t AgEq) over 1.5m. These results are part of a mapping and sampling program to better understand mineralization at Panuco project.
  • Advance Gold Corp., completed a second phase of a 3D-IP survey and has outlined a N-S trending chargeability anomaly of 1km long by 400-500m wide on its Tabasquena project in Zacatecas. It remains open in both directions as well as at depth. A number of boreholes are now planned to intersect this anomaly.
  • GoGold Resources Inc., released drill results from 4 new holes collared at its Los Ricos project in Jalisco. Three of the 4 holes were drilled at El Troce area and significant intersections were encountered in hole LRGG-19-059 with 0.94 g/t Au and 134 g/t Ag (2.72 g/t AuEq) over 11m, including 1.95 g/t Au and 277 g/t Ag (5.65 g/t AuEq) over 3.5m; and hole LRGG-19-60 with 0.32 g/t Au and 66 g/t Ag (1.19 g/t AuEq) over 16m, including 83 g/t Au and 162 g/t Ag (2.98 g/t AuEq) over 3m. Hole LRGG-19-57 was drilled at the Main area and intersected 0.91 g/t Au and 131 g/t Ag (2.65 g/t AuEq) over 14.1m, including 2.14 g/t Au and 253 g/t Ag (5.50 g/t AuEq) over 5.3m. GoGold completed in Mid-October 2019, a phase 1 drilling program which consisted of 10,000m, and has already started a second phase of drilling, adding a third rig  machine to the program.

ON MINING

  • Alio Gold Inc., continued with processing of low grade stock pile at its san Francisco mine in Sonora, resulting in the placement of 12.8K Oz Au on the pad. The company announced that the low grade stock pile will be exhausted in Q4, 2019, after which crushing will cease, and operations will solely focus on recovery of the residual inventory ounces.
  • Argonaut Gold Inc., presented Q3, 2019 production and financial results from its Mexican operations. The company produced 44.7K Oz AuEq at a cash cost of USD $901 per Oz Au produced and sold 45.6K Oz Au at an AISC of USD $1,134 per Oz Au sold. It also reported revenue for USD $66.8, cash flow from operating activities before changes in operating working capital of USD $17.2M, net income of USD $4.9M, adjusted net income of USD $6.5M, and a net cash increase of USD $11.7M. Argonaut also reported mine by mine production results for the period Q3, 2019. At El Castillo Complex in Durango, it milled 4.8M tonnes of 0.35 g/t Au to produced 30.3K Oz AuEq. At El Castillo, 2.4M tonnes of 0.39 g/t Au were milled to produce 14.3K Oz Au and 23.3K Oz Ag. This mine sold 14.6K Oz Au and 16.3K Oz Ag in this quarterly period, at a cash cost of $1,038 per Oz Au sold. At San Agustin, 2.4M tonnes were milled with a grade of 0.32 g/t Au to produce 15.2K Oz Au and 36.9K Oz Ag. This mine sold 15.7K Oz Au and 15K Oz Ag in this quarterly period, at a cash cost of $848 per Oz Au sold. At La Colorada, Sonora, the company milled 1.45M tonnes of 0.6 g/t Au, to produced 14K Oz Au and 33.6K Oz Ag. La Colorada sold 13.8K Oz Au and 34K Oz Ag at a cash cost of $800 per Oz Au sold.
  • Coeur Mining Inc., announced Q3, 2019 production and financial results from its Palmarejo mine in Chihuahua. It milled 442,464 tons of 2.8 g/t Au and 152 g/t Ag to, with a metallurgical recoveries of 81.7% and 79.6% respectively, to produce 31.8K Oz Au and 1.72M Oz Ag. Adjusted costs applicable to sales were USD $660 per Oz Au and USD $8.95 per Oz Ag. Coeur reported cash flow from operating activities of USD $36.3M and total capital expenditures of USD $7.8M for a total free cash flow of USD $28.5M.
  • Endeavour Silver Corp., reported consolidated Q3, 2019 financial and production results from its four Mexican operations: Guanacevi mine in Durango, Bolañitos and El Cubo in Guanajuato, and El Compas in Zacatecas. The company processed 234, 196 tonnes to produce 948.5K Oz Ag and 9.7K Oz Au (1.72M Oz AgEq), at a cash cost of $11.51 per Oz Ag produced and AISC of $21.53.
  • Excellon Resources Inc., reported Q3, 2019 production and financial results from its Platosa mine in Durango. The company mined 18,167 tonnes and processed 17,235 tonnes with grades of 512 g/t Ag, 4.4% Pb, and 6% Zn, to produce 257.5K Oz Ag, 1.3M Lb Pb, and 1.65M Lb Zn (427.1K Oz AgEq), at a cash cost per Oz Ag payable of $18.18 and AISC net of by-products per Oz Ag payable of $28.46. Metallurgical recoveries were 87.2%, 77.7%, and 76.5% for Ag, Pb, and Zn respectively. Excellon reported revenues for $5.9M, a net loss of $2.9M, and a net working capital of $$9.0M.
  • First Majestic Silver Corp., presented Q3 production results from its Mexican operations. The company reported revenues for $97M, a net loss of $8.6M, operating cash flow before movements in working capital and taxes of $34.6M, cash and cash equivalent of $118.6M, and a working capital of $149.2M. The below table shows the mine by mine production results:

  • Hecla Mining Company, announced Q3 production and financial results from its San Sebastian mine in Durango. It produced 541.6K Oz Ag and 3.7K Oz Au at an AISC of $$7.21 per Oz Ag.
  • Leagold Mining Corporation, produced from its Los Filos mine in Guerrero, 40,922 Oz Au at an AISC of $1,001 per Oz Au produced, and sold 41,343 Oz Au during Q3, 2019, with associated revenue of $58.6M.
  • Pan America Silver Corp., reported Q3, 2019 production and financial results from its la Colorada, Zacatecas and Dolores, Chihuahua mines. At La Colorada, the company produced 2.1M Oz Ag and 1,200 Oz Au, at a cash cost of $2.82 per Oz Ag and an AISC of $4.03 per Oz Ag. At Dolores, it produced 1.5M Oz Ag and 33.1K Oz Au, at an AISC of $7.45 per Oz.

ON FINANCING

  • Discovery Metals Corp., closed a non-brokered private placement for gross proceeds of $19M, including $5M investment from Eric Sprott, which represents 19.9% of the interest of Discovery on a non-diluted basis. Proceeds will be used to continue the exploration programs at its exploration properties (Cordero project, Chihuahua, Puerto Rico project, Coahuila).
  • Goldplay Exploration Ltd., closed a brokered private placement financing of $3M. Gross proceeds will be used to continue resource expansion drilling including underground and surface exploration on its san Marcial project in Sinaloa.
  • Solaris Copper Inc., announced its intention to undertake a non-brokered private placement to raise gross proceeds of up to CAD $5.5M. Gross proceeds will be used to advance permitting, exploration, and drilling activities at their projects. (La Verde project, Michoacan).
  • Advance Gold Corp., closed the first tranche of a non-brokered private placement for gross proceeds of $113K. The company will use the gross proceeds to advance its Tabasqueña project in Zacatecas.
  • Orex Minerals Inc., announced its intention to undertake a non-brokered private placement to raise gross proceeds of up to $1M. Orex will use the net proceeds to maintain its 40% share of the Sandra Escobar project in Durango and fund its 40% share of the upcoming work program, and to make the necessary payments under its option to acquire 100% of the San Luis del Cordero project, Durango, and for general corporate and capital purposes.
  • San Marco Resources Inc., revised its previously announced non-brokered private placement and now intends to rise gross proceeds for up to CAD $376.6K. It also closed subscription books for unit and flow through shares private placement for gross proceeds of CAD $40K (Chunibas project, Sonora).

ON RESOURCES AND DEVELOPMENT

  •  Capstone Mining Corp., announced high grade Cu-Ag results from 103 infill and step-out drill holes from 200 hole program at its Cozamin mine in Zacatecas. Aim of this program is more than double the current reserve base. Significant drill intersection were encountered in hole CG-19-U498 with 5.02% Cu, 0.4% Zn, and 72 g/t Ag over a true width of 12.3m, including 9.02% Cu, 0.7% Zn, and 127 g/t Ag; in hole CG-18-S381 with 7.27% Cu, 0.3% Zn, and 220 g/t Ag over a true width of 5.1m; in hole CG-18-S372 with 5.53% Cu, 0.2% Zn, and 117 g/t Ag over a true width of 20.1m, including 11.32% Cu, 0.3% Zn, and 242 g/t Ag over a true width of 6.4m.
  • Torex Gold Resources Inc., reported drilling results from its 2019 exploration program at its El Limon-Guajes complex deposit in Guerrero. The drilling program has been successful in extending mineralization 150m below current reserves at its El Limon Deep deposit. Significant mineralization was encountered in hole LDUG-039 with 15.6 g/t Au over 38m; in hole LDUG-049 with 20.9 g/t Au over 12m, and in hole LDUG-056 with 15.7 g/t Au over 16.8m. El Limon Deep deposit remains open down dip and along strike.
  • Mexus Gold US, announced that its Merrill Crowe Au recovery plant at its Santa Elena mine in Sonora is complete and operational. “The plant is capable of handling Mexus’3000 ton a week mining operation and will allow for future expansion as well”.
  • Mag Silver Corp., informed about the activities carried out at its Juanicipio project mine development in Zacatecas during Q3, 2019. The company reported that “earthmoving and foundation preparation commenced for the construction of the 4,000 tpd beneficiation plant. Mill fabrication is progressing on schedule, and both the SAG and ball mills are expected to be shipped to site early 2020. Flotation cells, processing tanks and minor process equipment pieces are starting to arrive on site. Thickener tanks and drive and rakes fabrication are well advanced. Underground development has now reached 23Km of development and continues. According to the operator, Fresnillo plc, permitting for the tailings impoundments should be completed in the fourth quarter of this year and mill construction is on track for commissioning by late 2020”.

 ON DEALS AND CORPORATE ISSUES

  • Colibri Resources Corporation, received TSX approval for its acquisition of Yaque Minerals by a CAD$ 1M payment by way of a 5-years convertible debenture bearing 2.5% annual interest and carries a $0.20 per share conversion privilege. The Yaque´s acquisition includes two projects in Sonora: El Mezquite and Jackie, located less than 10Km east of the Nicho deposit owned by Minera Alamos, which is expected to start production in 2020, with initial production of 25K-30K Oz Au per year, with a mine life of more than 6 years. El Mezquite is a 2km by 1km N-S trending hydrothermal alteration zone on silicified feldspar porphyry, with a potential Au target area of at least 600m by 300m. A 3D-IP survey was carried out on this anomalous area which resulted in the identification of chargeability and resistivity anomalies underlying the surface area of potential. 321 grab samples have been collected of which 13% returned Au values oscillating from 0.1 to 3.41 g/t Au. Jackie is located 2km south of the El Mezquite but it has seen very little exploration work to date. Some prospecting work is planned for 2020.
  • Vizsla Resources Corp., closed its previously announced option agreement on November 5, to acquire 100% interest in Panuco-Copala property in Sinaloa. Vizsla confirmed that it has previously loaned USD $700K to Canam in order to satisfy the initial payment due under the terms of the options.
  • Great Panther Mines Limited, announced the appointment of its VP Exploration and VP People & Culture (Topia mine, Durango).
  • Solaris Copper Inc., announced management changes of its team, appointed its CEO, CFO, VP Corporate Affairs and Corporate Secretary, and a new member to its Board of Directors (La Verde project, Michoacan).
  • Starcore International Mines Ltd., reported results from its annual general meeting of shareholders (San Martin mine, Queretaro).
  • Mako Mining Corp., provided a corporate update and status of its Mexican operation. At its la Trinidad mine in Sinaloa, Au production is nearing conclusion, with Au sales being used to fund ongoing reclamation and severance costs. Mining and process plant equipment has been moved to USA and the lab equipment will be moved to Nicaragua soon. Mako has reported that has not been successful in receiving any insurance for damages caused by Hurricane Willa at its Trinidad mine in October, 2018. It has filed a lawsuit for over USD $7M against the Insurance Company. Mako also announced that it has reached an agreement with the primary mining contractor on the debt of approximately USD $11.3M. “Despite being ring-fenced from the rest of Mako’s corporate structure, the Company chose to settle with the contractor by making a USD $4M upfront payment and agreeing to make two additional USD $1M payments 12 months and 24 months from signing of the settlement agreement.  As this liability was being accounted for at approximately USD$11.3M, a substantial accounting gain is expected in the next quarterly report.
  • Compañía Minera Cuzcatlán , a subsidiary of Fortuna Silver Mines, analyzes to invest in a new mining plant located 40km from its San Jose mine, Oaxaca. The company asked government support to mediate between the company and the communities, since the new plant will require between USD $200-300M. The decision has to be taken next year, so they need the support of the authorities to reach a social agreement with the communities.
  • Compañía Minera Autlán, A.B .de C.V., announced its intention to raise its commitment to gold. The intention of that business and the integration towards gold was always to reach 20 to 25% of the top line and about 30 to 35% of the operating cash flow (EBITDA). In addition, the company estimates they will close this year with and investment of USD $35M to support other areas of its business, to add USD $45 M in an integrated way (Lluvia de Oro-La Jojoba, Sonora).

ON SOCIAL RESPONSIBILITY

  • Agnico Eagle Mines Limited, participated, along with the municipal presidency of Yepachi, Chihuahua, in the reconstruction of the drinking water system for this community. Yepachi is the second largest community in this area and has years of lag in terms of the supply and quality of drinking water. A total of MXP $4M will be invested, an amount that will be contributed by 50% by the municipal presidency and the other part will be borne by Agnico Eagle, which operates within the territory of the Yepachi Ejido.
  • Argonaut Gold Inc., has participated in several programs with the communities where the company operates. At La Colorada, Sonora, Argonaut signed a health collaborative agreement with the Centro de Rehabilitación Integral Teletón and hosted a cultural event with the Cultural Institute of Sonora. In Durango, participated in collaboration with the local government in an interactive learning pavilion where local attendees and families could know about the company´s mining activities and projects. It also sponsored an international forum on geological and mining heritage organized by the Universidad Autónoma de Baja California Sur, to discuss possible historical tourism and ecotourism in mining communities. Finally, Argonaut hosted students’ interactive workshops in the municipality of Dolores, Hidalgo in the village of san Anton in Guanajuato, Mexico, and hosted a soprano singer and the Latin American quartet at the Mining Cultural Centre of the Mexican chamber of commerce in Mexico City.

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

On the picture above, a Mn oxides-calcite fault vein-bx structure from a prospect in Chihuahua, Mexico.  Photo by Miguel A Heredia.

The Mining and Exploration News in Mexico: Highlights on the Second Week of September, 2019.

 

Fault-bx with Mn oxides

By Miguel A Heredia

During the thirty-seven week of the year (September 09th to September 15th, 2019), at least 31 press releases were announced by companies working in Mexico, with ten informing on exploration results, ten reporting on resources and development of their projects, four announcing financial rounds, four disclosing deals and corporate issues, and one commenting on Mexican issues.  ON MEXICO ISSUES, Karen Flores was appointed as general director of the Mining Chamber of Mexico (CAMIMEX).  ON EXPLORATION, In Sonora, Aloro released drilling results from its Los Venados project, Riverside identified three targets from mapping and sampling its recently acquired Los Cuarenta project, Tamino announced its exploration expenditure guidance for 2019-2020, and Oceanus announced the commencement of the 2019 exploration program at its El Tigre project. In Chihuahua, Radius and Pan American Silver announced the commencement of the phase 3 drilling work at its Amalia project. In Durango, Gainey awarded drilling contract for its Las Margaritas project.  In Jalisco, GoGold reported drill results from its Los Ricos project, and Silver Spruce announced high grade Au assay values from surface rock sampling conducted at its Cocula project. In Veracruz, Mexican Gold discovered a new resistivity anomaly at Cinco Señores area within its Las Minas project. ON MINING, US Antimony reported estimated sales for August 2019. Consolidated Zinc announced August 2019 production from its Plomosas mine in Chihuahua.  ON FINANCING, Consolidated Zinc announced a plan to rise $3.5M via private placement and pro-rata non-renounceable rights offer (Plomosas mine, Chihuahua). Fortune announced a USD $40M bough deal financing (San Jose mine, Oaxaca), and granted an over-allotment option to purchase up to an additional USD $6M aggregate. Silver Viper increased its private placement to $4M (La Virginia project, Sonora). Defiance announced that it has applied for approval to extend by one year the expiry date of 5.75M of outstanding warrants (San Acacio project, Zacatecas).   ON RESOURCES AND DEVELOPMENT, Almaden provided an update of the progress achieved to build its Ixtaca mine in Puebla. Discovery Metals announced mobilization for a 35,000m drilling program at its recently acquired Cordero project in Chihuahua. Azure reported that Au-Ag exploration is underway on its Alacran project in Sonora. Impact released drilling results and expands at depth the San Ramon mine in its Zacualpan mining district in Mexico state.  Leagold announced drilling results from its Los Filos mine in Guerrero. Orla awarded the engineering, procurement, and construction contract for its Camino Rojo project in Zacatecas. US Antimony reported progress on its Los Juarez Au-Ag project in Queretaro.  Oroco filed a geological technical report regarding its Santo Tomas project in Sinaloa. Sonoro reported that a program of 3D modelling, mapping and sampling is underway at its Cerro Caliche project in Sonora. ON DEALS AND CORPORATE ISSUES, Almaden appointed its new VP Project Development to oversee detailed engineering and construction of its Ixtaca project in Puebla. Golden Goliath granted stock options to directors, officers, employees and consultants (San Timoteo project, Chihuahua). Golden Minerals announced termination of sale agreement with Autlan regarding the sale of certain of its Mexican properties. Millrock completed the sale of certain of their Mexican mining concessions to Riverside. ON SOCIAL RESPONSIBILITY, no relevant news.

 ON MEXICO ISSUES

  • Karen Flores, was appointed as general director of the Mining Chamber of Mexico (CAMIMEX). It will be the first time since its foundation in 1906 that CAMIMEX will be run by a woman.

ON EXPLORATION

  • Aloro Mining Corp., released drilling results from the last four holes collared in the southeastern area of its Los Venados project in Sonora for a total of approximately 1,347m drilled. The drilling intersected a felsic dome with 3-10 weight percent pyrite content in pervasive altered volcanic flow units and intrusive dome rock unit up to 200 meters thick. Assay results were discouraging showing very low grade Au, between 0.1-0.2 g/t Au, in scattered intercepts from 1.5-7.6m wide throughout the broad zone of pyritized felsic dome. No more work is planned in this area of the concession.
  • Riverside Resources Inc., completed the acquisition of Los Cuarenta project in Sonora from Millrock, where it has identified three targets. The Santa Rosalia target is the highest priority of the 3 targets and is defined by past open cut and underground vein mining where recent sampling has shown a strike length of more than 500 m and open to the east and west.
  • Tamino Minerals Inc., announced its business development plan and exploration expenditure guidance for the period 2019-2020. The plan is to identify and acquire high-quality, advanced-stage exploration projects and discover early-stages opportunities that can be strategically tested and quickly progressed to key decision point. Exploration expenditure guidance are planned to be $5M in 2019-2010, with $2M in the Amalia project, $1.2M in the El Volcan project, and $1.8M in other small exploration projects and acquisitions.
  • Oceanus Resources Corporation, announced the commencement of the 2019 exploration program at its El Tigre project in Sonora. The Company has recently mobilized the exploration team back to the property to continue prospecting and mapping, as well as, sampling in the area of the Caleigh vein. The objective of this program is to establish drill targets.
  • Radius Gold Inc., and Pan American Silver Corp., announced the commencement of the phase 3 drilling program at its Amalia project in Chihuahua. Pan American Silver intends to complete further geological mapping, re-logging of previous drill core, and drilling an additional 2,500 m as part of the phase 3 program.
  • Gainey Capital Corp., announced that it has finalized the reparation and construction of approximately 39Km of road and a water reservoir system to support its planned drilling program at its Las Margaritas project in Durango. The company received the approval from SEMARNAT to drill up to 32 targets. Gainey has already awarded the drilling contract and will commence soon a first phase of drilling comprising 2,190m to test 16 drill targets.
  • GoGold Resources Inc., released drill results from four new holes drilled at the Main Zone, and underground channel sampling results from its Los Ricos project in Jalisco. Significant intersections were encountered in hole LRGG-19-034 with 0.92 g/t Au and 177 g/t Ag (3.28 g/t AuEq) over 20.1m, including 3.41 g/t Au and 621 g/t Ag (11.68 g/t AuEq) over 4.9m; and in hole LRGG-19-035 with 1.29 g/t Au and 127 g/t Ag (2.99 g/t AuEq) over 24.4m, including 3 g/t Au and 258 g/t Ag (6.44 g/t AuEq) over 9.8m. In addition, GoGold rehabbed the historic El Troce old working where a mapping and channel sampling program was conducted. Encouraging results were obtained with grades varying from 0.98-6.8 g/t Au, and 44-492 g/t Ag over 2-3 m wide. Given the results, the company has decided to move a drill to test the targets at El Troce area.
  • Silver Spruce Resources Inc., reported high grade Au assay values from surface rock sampling conducted at its Cocula project in Jalisco. Nine out of twenty six rock chip samples recently taken from surface outcrop returned Au assay values of 0.88 g/t Au up to 12.55 g/t Au, Ag values of 13 g/t Ag up to 53 g/t Ag, and Pb values of 0.2% Pb up to 7.4% Pb. These recent sample assays continue to confirm the presence of widespread Au mineralization at surface, along with Ag and Pb values. The company also announced that it filed the first ever 43-101 technical report for its advanced Au Cocula project. Silver Spruce will continue its due diligence activities designed to support a definitive purchase decision of the property.
  • Mexican Gold Corp., discovered a new resistivity anomaly at the Cinco Señores target area in its Las Minas project in Veracruz. This notable TEM resistivity anomaly, similar in size to the El Dorado Au-Cu-Ag resource, extends more than 700m towards the Las Minillas target. The company plans to drill test this anomaly in the near future.

ON MINING

  • US Antimony Corporation, reported estimated sales for August 2019. It sold 146.6K Lb Sb and 1159 tons of zeolites. “The Company continues to take steps to reduce its costs of producing Sb products in response to the lower global sale prices.”
  • Consolidated Zinc Limited, provided August 2019 production results from its Plomosas mine in Chihuahua. The company mined 2,794 tonnes of 14% Zn, 8% Pb, and 42 g/t Ag, and processed 2,913 tonnes of 13.5% Zn, 8% Pb, and 39 g/t Ag.

ON FINANCING

  • Consolidated Zinc Limited, announced a plan to rise A$3.5M to fund the Plomosas mine operations in Chihuahua, to process the pending sale of Zn-Pb concentrate currently stockpiled, and for working capital. A$2.48M will be rised through pro-rata non-renounceable rights offer, and A$1M through a private placement.
  • Fortuna Silver Mines Inc., entered into an agreement to rise USD $40M via a bought deal financing. The company also granted an over-allotment option to purchase up to and additional USD $6M aggregate (San Jose mine, Oaxaca).
  • Silver Viper Minerals Corp., increased its private placement from $3M to $4M. The net proceeds will be used to continue exploration and development of its La Virginia project in Sonora.
  • Defiance Silver Corp., announced that it has applied for TSX Venture Exchange approval to extend by one year the expiry date of an aggregate of 5.75M of outstanding warrants exercisable at $0.45 per share (San Acacio project, Zacatecas).

ON RESOURCES AND DEVELOPMENT

  •  Almaden Minerals Ltd., provided an update to their shareholders of the progress achieved to build its precious metal Ixtaca mine in Puebla. The company reported that the waste rock and flotation tailings have low potential for metal leaching. It also reported that the mine plan considers a dry stack filtering tailings facility, and co disposal with waste rock with no tailings dam, eliminating the risk of a tailings dam failure. Almaden has received letters from INAH clearing the area for development, from PROFEPA confirming it has conducted exploration work in accordance with the environmental code, and from the authority responsible for indigenous affairs confirming that no indigenous communities are located in the mine impact area. Local community members have publicly expressed their support of the project. One key aspect to develop the Ixtaca mine was the strong support granted for over 800 people from the local community. They signed a declaration of support for the project and delivered to the environmental authorities, and a Memorandum of Understanding has been signed with local water users. The Municipality has included mining as one of its accepted investment and development activities. Based on the FS, an initial investment of USD $174M is required to generate an after-tax internal rate of return of 42% and NVP of USD $310M, using a discount rate of 5% and precious metals prices of USD $1,275/Oz Au and USD $17/Oz Ag. The project would employ over 400 people during an 11-year mine life and would also provide updated infrastructure to a highly marginalized region.
  • Discovery Metals Corp., announced mobilization to conduct a 30,000 – 35,000 m drilling program at its recently acquired Cordero project in Chihuahua. The company plans to commence it in about five weeks from now and expect to be completed in twelve months, with the focus of delineating and discovering the highest-grade phases and domains of the mineralized system, and testing new high priority targets. The company has estimated 20,000-25,000m of drilling at the Cordero deposit and 10,000m on six regional areas that require follow-up work and drill testing.
  • Azure Minerals Limited, reported that Au-Ag exploration is underway around Mesa de Plata and Loma Bonita deposits on its Alacran project in Sonora. The Mesa de Plata deposit (10.5M tonnes of 82 g/t Ag for 27.4M Oz Ag, including 1.8M tonne of 275 g/t Ag for 15.5M Oz Ag) remains open to the west but is constrained in this direction by the concession boundary. To the north and east the mineralization has been truncated by erosion, however the mineralized zone remains open to the south.  Potential for repetitions of Mesa de Plata exist further to the north, where outcropping vuggy silica forms similar-looking silicified ridges. Further exploration is planned for this area. At the Mesa Bonita deposit (5.4M tonnes of 0.9 g/t Au and 28 g(/t Ag for 150K Oz Au and 4.8M Oz Ag), the mineralized zone is constrained to the west by erosion into a valley but remains open to the north, south, east and at depth down-dip. Being open in several directions, there is good potential that further drilling will significantly increase the size of the resource.
  • Impact Silver Corp., presented drilling results from its Zacualpan project in Mexico state and extended the mineralization 50m to depth at the San Ramon mine. Significant drill intersections were encountered in hole MPZ-284-19 with 321 g/t Ag, 0.38 g/t Au, 0.19% Pb and 0.60% Zn over 2.62m true width, hole MPZ-285-19 with 1,393 g/t Ag, 2.15 g/t Au, 2.4% Pb, and 6.4% Zn over 1.58m true width and 305 g/t Ag, 0.97 g/t Au, 0.7% Pb, and 1.7% Zn over 1.38m true width, hole MPZ-287-19 with 418 g/t Ag, 0.5% Pb, and 0.5% Zn over 2.14m true width, and hole MPZ-288-19 with 214 g/t Ag, 0.9 g/t Au, 0.1% Pb, and 0.3% Zn over 1.87m true width, and 317 g/t Ag, 0.3% Pb, and 0.4% Zn over 1.22m true width. Known mineralization over the total San Ramon workings has a down dip length of over 500m. Further drilling is planned to further test the extent of this prolific zone.
  • Leagold Mining Corporation, announced drilling results from its Los Filos underground and the Guadalupe open pit mines in Guerrero. Highlights from the Los Filos underground mine include 8.86 g/t Au over 45m and 6.59 g/t Au over 15.46m. Highlights from the Guadalupe open pit include 1.4 g/t Au over 32.73m, including 7.71 g/t Au over 2.67m, and 6.2 g/t Au over 10.61m, including 10.55 g/t Au over 5.2m. The drill program at Los Filos will contribute to the reserve base and extend the mine life. At Guadalupe, the drilling program is testing for extensions of the mineralization at depth and also confirming the limited nature of old underground workings prior to open pit mining in this area.
  • Orla Mining Ltd., awarded the engineering, procurement, and construction contract for its Camino Rojo project in Zacatecas. Orla expects to begin the detailed engineering work by mid-September to build a mine that begins to produce Au in mid-2021. Au production is expected to average 97K Oz Au per year at an estimated AISC of USD $576 per Oz Au. Orla submitted permits applications to SEMARNAT for the MIA and change of land use at the end of August. The legislated timelines for the review of properly prepared MIA and change of land use applications and mine operating permits for a project that does not affect federally protected biospheres or ecological reserves are 120 working days and 105 working days, respectively, which can be completed concurrently.
  • US Antimony Corporation, announced progress on its Au-Ag Los Juarez project in Queretaro. It completed the installation of the ponder liner in the 2 hectares tailings pond and the deepening of the water well to 222m to provide more than 240 gallons per minute. “The pond and the well will be more than adequate to ramp production from 100 tons per day to 400 tons per day. Projects remaining include fencing the pond, completion of the laboratory for fire assaying precious metals, and atomic adsorption equipment for assaying Sb, Ag, and Au in the leach circuit. The mil fine ore bin has been filled with crushed ore from the mine. Initial testing could start within 30 to 60 days.
  • Oroco Resource Corp., filed a geological technical report regarding its Santo Tomas project in Sinaloa. “The report summarizes a data set now controlled by the company that comprises 90 historical drill holes totaling 21,075 m, and recommends a significant program of phased surface exploration, deep geophysical surveys, and diamond drilling that aims to verify and build upon a key new geological model and a substantial body of historical drilling, mineral resource estimates, and pre-feasibility studies. The Report provides the company with a current, technical foundation upon which to advance the Santo Tomás project by confirming the technical analysis of the mineralization on the property”.
  • Sonoro Metals Corp., reported that a program of 3D modelling, mapping and sampling is underway at its Cerro Caliche project in Sonora. It also launched a phase 3 drilling program to test the Veta de Oro, La Espanola, Cuervos and Guadalupe/Cabeza Blanca zones, where previous scout holes reported intervals of high-grade vein Au mineralization. “The program is a continuation of the company’s strategy of systematically exploring Cerro Caliche as it concurrently advances its proposed heap leach pilot operation (HLPO). Drilling to date continues to outline shallow, bulk tonnage Au mineralized zones with grades similar to operating heap leach mines in the region”.

ON DEALS AND CORPORATE ISSUES

  • Almaden Minerals Ltd., appointed its new VP Project Development to oversee detailed engineering and construction of its Ixtaca project in Puebla.
  • Golden Goliath Resources Ltd., granted 3M stock options to directors and officers, and 400K to employees and consultants. The incentive stock options are exercisable for a period of five years at a price of $0.10 (San Timoteo project, Chihuahua).
  • Golden Minerals Company, announced termination of sale agreement with Compañia Minera Autlan S.A.B. de C.V., regarding the sale of certain of its Mexican properties. The CEO of Golden informed that unfortunately they could not come to terms with Autlan and now they are in position to consider future options for the properties that were included in the Autlan agreement (Velardeña and Rodeo in Durango, and Santa Maria project in Chihuahua).
  • Millrock Resources Inc., completed the sale of five of their Mexican properties to Riverside Resources Inc. La Union, Los Cuarenta, El Pima, El Valle and Llano del Nogal, all located in Sonora state, were the mineral concessions sold to Riverside along with a copy of its exploration database and various exploration equipments and vehicles. Consideration paid to Millrock is $35K cash and 300K Riverside shares. Additionally, Riverside will grant a 0.5% NSR royalty on the El Pima and El Valle claims, and in the event that Riverside exercises the option on Santa Rosalia (Los Cuarenta project), it will grant a 0.5% NSR royalty on that claim to Millrock.

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, a fault-bx with Mn oxides in a prospect in Chihuahua, Mexico.  Photo by Miguel A Heredia.

Tom Palmer to Succeed Gary Goldberg as Newmont Goldcorp’s Chief Executive Officer on October 1

Newmont_24072019_nr

DENVER–(BUSINESS WIRE)– Newmont Goldcorp Corporation (NYSE: NEM, TSX: NGT) (Newmont Goldcorp or the Company) today announced that, effective October 1, Tom Palmer, President, will succeed Gary Goldberg to become the Company’s President and Chief Executive Officer and join the Board of Directors. As previously announced in January, Mr. Goldberg will retire from Newmont Goldcorp after more than seven years of exemplary service transforming the Company into the world’s leading gold business as measured by assets, prospects and talent. From October 1, 2019 through March 31, 2020, Mr. Goldberg will serve as Executive Advisor to support Mr. Palmer and the Executive Leadership Team.

The Mining and Exploration News in Mexico: Highlights on the Third Week of July, 2019.

Boiling texture in a quartz chalcedonic vein

By Miguel A Heredia

During the twenty seven week of the year (July 15th to July 7th, 2019), at least 27 press releases were announced by companies working in Mexico, with ten communicating production results, seven disclosing deals and corporate issues, six announcing financial rounds, two reporting on resources and development of their projects,  and two informing on exploration results.  ON MEXICO ISSUES, no relevant news.  ON EXPLORATION, In Chihuahua, Silver Spruce secured drill pads to commence phase 1 drill program at its Pino de Plata project. In Oaxaca, Megastar identified multiple targets at its Yautepec property. ON MINING, Avino, Consolidated Zinc, First Majestic, Fortuna Silver, Fresnillo, Gold Resource, Hecla, McEwen, Premier, and Sierra Metals reported Q2, 2019 production results from their Mexican operations. ON FINANCING, Americas Silver announced a non-brokered private placement for gross proceeds of approximately US$10M (Cosala, Sinaloa). It also announced the termination of the agreement with Premier Gold on the San Felipe project in Sonora for total sales proceeds of US$10.8M. Discovery Metals announced its intentions to complete a non-brokered private placement to rise gross proceeds of $9M (Puerto Rico project, Coahuila). Golden Minerals entered in definitive agreements to rise gross proceeds of $2.25M (Santa Maria project, Chihuahua). Mexican Gold closed a non-brokered private placement for gross proceeds of $4M (Las Minas project, Veracruz). Orla Mining rised $3.6M through early warrant exercise incentive program (Camino Rojo project, Zacatecas). Silver Spruce received a final payment of $150K for the sale of its Kay Mine project to Croesus. Silver Spruce received and accepted an unsolicited cash investment offer of USD $250K (Pino de Plata project, Chihuahua). ON RESOURCES AND DEVELOPMENT, Endeavour acquired two mineral properties adjacent to its Guanacevi mine in Durango. SilverCrest received the operating permit from SEMARNAT for the development of its Las Chispas project in Sonora. ON DEALS AND CORPORATE ISSUES, Silver Spruce announced the acquisition of the Cocula advanced Au project in Jalisco. Excellon, Great Panther, Mexican Gold, and Prize announced management changes.  Mexican Gold, Prize, and Minera Alamos granted stock options to Directors, Officers, Employees, and Consultants.

 ON MEXICO ISSUES

  • No relevant news.

ON EXPLORATION

  • Silver Spruce Resources Inc., secured drill pads to commence phase 1 drill program at its Pino de Plata project in Chihuahua. The surface landowners have granted surface access and signed the drill permit application.
  • Megastar Development Corp., identified multiple targets at its Yautepec property in Oaxaca. The property lies within the known Oaxaca Au-Ag epithermal trend that hosts the San Jose Mine owns by Fortuna Silver, and the Arista-Switchback mine owned by Gold Resource. Results from the first 146 rock-chip samples were received. Significant results are: 6 samples with > 10 ppm Ag (maximum value of 62 ppm Ag); 9 samples with > 100 ppb Au (maximum value of 0.86 ppm Au);   5 samples with > 100 ppm Cu (maximum value of 639 ppm Cu); 6 samples with > 100 ppm Pb (maximum value of 863 ppm Pb); 10 samples with > 100 ppm Zn (maximum value of 215 ppm Zn; 8 samples with > 100 ppm Mo (maximum value of 648 ppm Mo); 12 samples with > 1,000 ppm As (maximum value of 6,290 ppm As); 9 samples with > 1,000 ppm Ba (maximum value of 4,590 ppm Ba); and 12 samples with > 1 ppm Hg (maximum value of 7.8 ppm Hg). These anomalous values are from quartz veins, silicified breccias and siliceous sinter deposits in multiple areas along a north-northwest striking 8.4km trend of prospective rocks that trace a volcanic caldera margin. An additional 175 rock-chip samples have been submitted to the lab and results will be announced in subsequent new releases.

ON MINING

  • Avino Silver & Gold Mines Ltd., reported Q2, 2019 consolidated production results from its Avino mine operation in Durango. It processed 200,873 tonnes of 57 g/t Ag, 0.41 g/t Au, and 0.38%Cu to produce 246K Oz Ag, 1,609 Oz Au, and 1.14M Lb Cu. Metallurgical recoveries were 69%, 61% and 63% for Ag, Au, and Cu respectively.
  • Consolidated Zinc Limited, reported June 2019 production results from its Plomosas mine in Chihuahua. It mined 5,099 tonnes of 17.5% Zn, 11.2% Pb, and 62 g/t Ag for a total of 2M Lb Zn, 1.3M Lb Pb, and 10.2K Oz Ag contained. From this tonnage, only 2,409 tonnes were processed but additional stockpiles of 6,599 tonnes remain in mine site awaiting be delivered to the Aldama plant.
  • First Majestic Silver Corp., announced Q2, 2019 production results from their Mexican operations. The below table shows the mine by mine production results:

 

  • Fortuna Silver Mines Inc., released Q2, 2019 production results from its San Jose mine in Oaxaca. Fortuna processed 271,016 tonnes of 273 g/t Ag and 1.68 g/t Au to produce 2.2M Oz Ag and 13.2K Oz Au, with metallurgical recoveries of 90.76% and 90.23% respectively.
  • Fresnillo plc., reported Q2, 2019 consolidated production results from their Mexican operations. The company produced 14.42M Oz Ag (including Silverstream), 221.3K Oz Au, 29.2M Lb Pb, and 46.3M Lb Zn. The production results by mine are as follow: At the Fresnillo mine in Zacatecas, 618,852 tonnes with grades of 192 g/t Ag, 0.9 g/t Au, 1% Pb, and 1.6% Zn were processed to produce 3.5M Oz Ag, 13.5K Oz Au, 11.7M Lb Pb, and 15M Lb Zn. At the Saucito mine in Zacatecas, 662,023 tonnes were processed with grades of 242 g/t Ag, 1.15 g/t Au, 0.8% Pb, and 1.3% Zn to produce 4.5M Oz Ag, 18K Oz Au, 10.2M Lb Pb, and 13.31M Lb Zn. At the Piritas Plant in Zacatecas, 39,159 tonnes were processed with grades of 352 g/t Ag and 2.57g/t Au to produce 333K Oz Ag and 1,215 Oz Au. At the La Cienega mine in Durango, the company processed 329,117 tonnes with grades of 1.57 g/t Au, 162 g/t Ag, 0.6% Pb, and 1.1% Zn to produce 15K Oz Au, 1.5M Oz Ag, 3M Lb Pb, and 4.8M Lb Zn. At the San Julian mine in Chihuahua-Durango border, Fresnillo processed 338,797 tonnes of 1.71 g/t Au and 124 g/t Ag from San Julian Veins to produce 17.7K Oz Au and 1.2M Oz Ag, while 562,534 tonnes were processed from the San Julian Disseminated Ore Body with grades of 0.08 g/t Au, 149 g/t Ag, 0.4% Pb, and 1.4% Zn, to produce 636 Oz Au, 2.3M Oz Ag, 4.2M Lb Pb, and 13.3M Lb Zn. Total production at San Julian was 18.3K Oz Au and 3.6M Oz Ag. At its Herradura mine in Sonora, the company processed 5,466,791 tonnes of 0.84 g/t Au and 2.5 g/t Ag to produce 120K Oz Au and 280K Oz Ag. At the Noche Buena mine in Sonora, Fresnillo processed 3,663,549 tonnes of 0.56 g/t Au and 0.22 g/t Ag,  to produce 35.3K Oz Au and 17K Oz Ag.
  • Gold Resource Corporation, released production results from its Oaxaca Mining Unit for the period Q2, 2019. It produced 7,881 Oz Au, 466.5K Oz Ag, 1.1M Lb Cu, 5.2M Lb Pb, and 13.6M Lb Zn.
  • Hecla Mining Company, reported Q2, 2019 production results from its San Sebastian mine in Durango. The company produced 0.5M Oz Ag and 3,547 Oz Au.
  • McEwen Mining Inc., announced that 5,340 Oz Au were produced at its El Gallo mine in Sinaloa during the period Q2, 2019.
  • Premier Gold Mines Limited, reported that a total of 15.5K Oz Au and 56.5K Oz Ag were produced from its Mercedes mine in Sonora during Q2, 2019.
  • Sierra Metals Inc., released Q2, 2019 production results from their Mexican operations. At Its Bolivar mine in Chihuahua, Sierra Metals processed 326,208 tonnes of 0.86% Cu, 18 g/t Ag, and 0.24 g/t Au to produce 5.2M Lb Cu, 152K Oz Ag, and 1,586 Oz Au. At its Cusi mine in Chihuahua, the company processed 82,117 tonnes of 1|45 g/t Ag, 0.15 g/t Au, and 0.1% Pb to produce 283K Oz Ag, 146 Oz Au, and 154K Lb Pb.

ON FINANCING

  • Americas Silver Corporation, announced that Eric Sprott has agreed to purchase common shares of the company for a total investment of approximately US$10M in a non-brokered private placement (Cosala, Sinaloa). It also announced the termination of the agreement with Premier Gold on the San Felipe project in Sonora for total sales proceeds of US$10.8M.
  • Discovery Metals Corp., announced its intentions to complete a non brokered private placement to raise gross proceeds of $9M, of which Eric Sprott has agreed to purchase 19.9% of the company by investing $7.7M. Discovery plans to acquire all the issued and outstanding common shares of Levon Resources Ltd., as announced in a news release dated May 30, 2019. Gross proceeds will be used to continue exploration at Cordero, Chihuahua, following the acquisition of Levon, and at the Coahuila projects (Puerto Rico, Minerva, and Monclova).
  • Golden Minerals Company, entered in definitive agreements with institutional investors for an offering of shares of common stock with gross proceeds of $2.25M (Santa Maria project, Chihuahua).
  • Mexican Gold Corp., closed a non-brokered private placement for gross proceeds of $4M. Net proceeds will be used for exploration and advancement of its Las Minas project in Veracruz.
  • Orla Mining Ltd., rised $3.6M through an early warrant exercise incentive program rised $3.6M. Net proceeds will be used to continue regional exploration and allow greater flexibility prior to construction of its Camino Rojo Oxide project in Zacatecas.
  • Silver Spruce Resources Inc., received a final payment of $150K for Croesus Gold Corp., for the sale of its Kay Mine project. Some of the net proceeds will be used to fund the due diligence program at its advanced Cocula gold project in Jalisco. The company also received and accepted an unsolicited cash investment offer of USD $250K to purchase 5% interest of Silver Spruce Resources de Mexico SA de CV, the Mexican subsidiary of Silver Spruce, and 5% interest in the mining titles for each of the four mining concession that comprise its Pino de Plata project in Chihuahua. The offer was done before the commencement of the phase 1 drill program.

ON RESOURCES AND DEVELOPMENT

  •  Endeavour Silver Corp., acquired a 10 years rights to explore and exploit two mineral properties adjacent to its Guanacevi mine in Durango from a subsidiary of Minera Frisco SAB de CV. The El Porvenir property of 15 Ha covers the up dip extension of the El Porvenir Norte orebody, and The El Curso property of 40 Ha that covers any possible northwest extension of the El Porvenir Cuatro orebody, which was the highest grade mine in the district. Endeavour agreed to meet certain minimum production targets from the properties and pay Frisco a fixed per tonne production payment plus a floating NSR based on the spot Ag price.
  • SilverCrest Metals Inc., received from SEMARNAT the approval of the MIA or operating permit for the development of its Las Chispas project in Sonora. The receipt of the MIA provides the company to construct a 3,000 tonnes per day underground mine and a conventional processing facility with subsequent dry stack tailings and underground backfill for Las Chispas. The MIA remains in good standing for 14 years until July 17, 2033.

 ON DEALS AND CORPORATE ISSUES

  • Silver Spruce Resources Inc., acquired 100% interest in the Cocula advanced Au project in Jalisco from Prospeccion y Desarrollo Minero del Norte SA de CV (ProDeMin), which in turn, has an option agreement from the owners to acquire 100% interest in the Cocula project. Terms of the acquisition include a USD$160K due within two years of assumption of the ProDeMin contract; USD$330K due within year three; and USD$2.5M due within year four. ProDeMin has to negotiate with the owners to delay payments and to accept cash and company shares as payment. The owners also have retained a 2% NSR which is capped at USD$1.5M and of which 1% can be purchased for USD$500K. Minimum work expenditure include USD$250K in the first two years and USD$500K within the following two years. Silver Spruce has also agreed to reimburse ProDeMin USD$125K over two years for its previous option payments made to the owners, upon completion of the Company’s financing requirements, and to issue 3M of the Company’s common shares to ProDeMin over four years.
  • Excellon Resources Inc., announced the appointment of its CFO and VP Corporate Development (La Platosa, Durango).
  • Great Panther Mining Limited, announced the appointment of the Chair of the Board of Directors of the company (Topia mine, Durango).
  • Mexican Gold Corp., announced the resignation of its COO and one Director, and the appointment of a new member to its Board of Directors. The company also granted stock options to Directors, Officers, and Consultants of the company (Las Minas, Veracruz).
  • Prize Mining Corporation appointed as new Director to the Board of the company. It also granted stock options to Directors, Officers, Employees, and Consultants of the company (Manto Negro project, Coahuila).
  • Minera Alamos Inc., granted stock options to Managements, Directors, Employees, and Consultants of the company (Santana project, Sonora).

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, boiling texture in a low-sulphidation epithermal chalcedonic quartz vein in a prospect in Durango, Mexico.  Photo by Miguel A Heredia.