Quartz-goethite stockwork veining with malachite stains

By Miguel A Heredia

During the 23^thweek of the year (June 3^rdto June 9^th, 2024), at least 28 press releases were announced by companies working in Mexico, and 1 news published by the media, with eleven announcing financing rounds, ten disclosing deals and corporate issues, four reporting resources and developments of their properties, two commenting on Mexican issues, one informing on exploration results, and one discussing social issues. ON MEXICO ISSUES, Claudia Sheinbaum won the election with a significant majority and is likely to maintain restrictions on mining. Tocvan/Colibri and Atacama Copper reported the best drilling intercepts in Mexico on the first week of June, 2024. ON EXPLORATION, In Nayarit, Angel Wings reported results for two recently completed geophysical surveys at its La Reyna project. ON MINING, no relevant news. ON FINANCING, Fortuna Silver declared that it is offering convertible senior notes due 2029 in an aggregate principal amount of USD $150M, and later on, it announced pricing of convertible senior Notes (San Jose mine, Oaxaca). Sierra Metals reported the refinancing of its $75M long-term debt facility and the entering into a new $95 million facility with new covenants, payment terms, and a 5-year term (Bolivar mine, Chihuahua). Solaris filed a final short form prospectus to qualify the distribution of 7,150,000 common shares of the company at a price of $4.90 per common share and an additional 1,072,500 common shares at the offering price pursuant to an over-allotment option (La Verde project, Michoacan). Aura declared and approved the payment of dividend for the six month ending June, 2024 (Aranzazu mine, Zacatecas). Infinitum Copper closed its previously announced non-brokered private placement for gross proceeds of CAD $450K (La Adelita project, Sonora). Silver Spruce announced that the TSX has granted an extension to the closing of the second tranche of its previously announced private placement (Pino de Plata project, Chihuahua). Orex closed the final tranche of its non-brokered private placement for gross proceeds of $662,992 (Sandra project, Durango). Starcore closed its non-brokered private placement, raising $500K in gross proceeds (San Martin mine, Queretaro). Oroco completed its previously announced non-brokered private placement for gross proceeds of $6.3M (Santo Tomás project, Sinaloa). Dyna Resource extended its USD $4M commercial offtake agreement with Ocean Partners, increased a revolving credit line to USD $12.5M, and announced that a major shareholder is set to purchase USD $2.5M shares of common stock of Dyna Resource (San Jose de Gracia mine, Sinaloa). ON RESOURCES AND DEVELOPMENT, Tocvan and its JV partner Colibri released results from its 2024 RC drilling program from its Pilar project in Sonora. Silver Storm added a second drill rig to commence a phase 2 drill program at its La Parrilla mine, Durango. Atacama Copper released results from five holes of a 10,000m diamond drilling program at its Cristina project, Chihuahua. ON DEALS AND CORPORATE ISSUES, Colibri announced the listing of its common shares on the Frankfurt Stock Exchange (Pilar project, Sonora). Discovery Silver notified the appointment of its Vice President, Investor Relations (Cordero project, Chihuahua). Sierra Metals filed its management information circular in connection with the company´s upcoming annual meeting of shareholders (Bolivar mine, Chihuahua). Sonoran Desert reported that it has been delayed in filing its audited annual financial statement for its financial year ended December 31, 2023, and the related Management’s Discussion and Analysis and Certifications by the Chief Executive Officer and Chief Financial Officer (Cuatro Hermanos project, Sonora). Bear Creek reported voting results from its annual general meeting of shareholders and announced the appointment of officers (Mercedes mine, Sonora). Chesapeake reported that that it and Alderley Gold Corp., the Company’s wholly-owned subsidiary, have completed the acquisition of the patents, patent applications and certain other technology rights and assets for the sulphide leaching technology from Hycroft Mining Holding Corporation and its wholly-owned subsidiaries (Metates project, Durango). Angel Wing granted stock options to employees and consultants of the company (La Reyna, Nayarit). Gatos Silver presented voting results from its annual general meeting of shareholders (Cerro Los Gatos mine, Chihuahua). DynaResource announced the appointment of its President, CEO, Interim CFO and Director (San Jose de Gracia mine, Sinaloa). Vizsla Silver announced that the independent proxy advisory firms ISS and Glass Lewis recommended that Vizsla Silver shareholders vote for the proposed arrangement with Vizsla Royalties Corp at the upcoming special meeting of shareholders. ON SOCIAL RESPONSIBILITY, Gold Royalty published its 2023 Sustainability Report an Asset Handbook (Cozamin mine, Zacatecas).

ON MEXICO ISSUE

Claudia Sheinbaum won the Mexican election with a significant majority and is likely to maintain restrictions on mining, including a de facto ban on new open pit mines. Sheinbaum secured the most ballots on Sunday in the nation’s 200-year democratic history, as much as 61% of the vote, according to a sample count by the country’s electoral authority. Challenges for her presidency include Mexico’s security situation, fiscal deficit, and strengthening currency. Sheinbaum’s technocratic approach and alignment with her mentor, outgoing President López Obrador, raise questions about her independence and ability to address key issues facing Mexico.
Tocvan Ventures Corp/Colibri Resources Corporation and Atacama Copper Corporation reported the best drilling intercepts in Mexico on the first week of June, 2024. Details are shown in the table below:

ON EXPLORATION

Angel Wing Metals Inc., reported results for two recently completed geophysical surveys at its La Reyna project, Nayarit. Results from the initial Induced Polarization (IP) survey and Hybrid Controlled Source Audio Magneto-Telluric (HSAMT) survey have provided valuable information to improve the company’s understanding of this priority target area. “Multiple anomalies were identiﬁed by the IP survey for follow up drilling, the strongest of which underlies outcrop exposures of mineralized and altered rocks that host anomalous disseminated gold. IP has also identiﬁed or conﬁrmed several new prospects for drilling that correlate well with noted mineralization along structural trends at surface including La Feña, El Zorillo, San Ramon, Dolorosa, El Polo, Celeste, and La Reyna 2. The HSAMT survey has successfully reﬁned the location and attitude of several important structural controls to mineralization that were observed at surface. In addition, it has identiﬁed several buried anomalies between a depth of 50 to 300m and has identiﬁed the location of a potential intrusion and feeder zone that may be of importance to the district scale mineralization”.

ON MINING

No relevant news.

ON FINANCING

Fortuna Silver Mines Inc., announced that it is offering convertible senior notes due 2029 in an aggregate principal amount of USD $150M. The Company expects to grant the initial purchasers of the Notes an option for a period of 15 days to purchase up to an additional USD $22.5M aggregate principal amount of Notes. Net proceeds will be used to repay bank indebtedness, to fund working capital requirements, for general corporate purposes and to fund the repayment of its existing 4.65% senior subordinated unsecured convertible debentures, to the extent that such debentures are not converted into shares prior to the redemption date. Later on, the company notified that it has priced its previously announced offering of convertible senior notes due 2029. The company has granted the initial purchasers of the Notes an option for a period of 15 days to purchase up to an additional USD $22.5 million aggregate principal amount of Notes. The Notes will be issued at par value. The Notes will bear cash interest semi-annually at a rate of 3.75% per annum. The initial conversion rate for the Notes will be 151.7220 common shares of Fortuna per USD $1,000 principal amount of Notes, equivalent to an initial conversion price of approximately USD $6.59 per share. The initial conversion rate represents a premium of approximately 30% relative to today’s closing sale price of the shares and is subject to adjustment in certain events (San Jose mine, Oaxaca).
Sierra Metals Inc., reported the refinancing of its $75M long-term debt facility and the entering into a new $95 million facility with new covenants, payment terms, and a 5-year term. The New Facility of $95M will be used to repay the existing $75M loan and the additional $20M will be earmarked for high-return capital projects as well as for transaction fees and expenses. Capital expenditures include the development below the 1120 level and the completion of the shaft at the Yauricocha mine in Peru, as well as for mine developments of over 8,000 meters, a new ore pass, and the initial engineering works on a new tailings dam facility at the Bolivar mine in Chihuahua, Mexico.
Solaris Resources Inc., filed a final short form prospectus dated June 3, 2024 to qualify the distribution of 7,150,000 common shares of the company at a price of $4.90 per common share and an additional 1,072,500 common shares at the offering price pursuant to an over-allotment option (La Verde property, Michoacan).
Aura Minerals Inc., declared and approved the payment of a dividend of USD $0.35 per common share (approximately USD $25.4M in total) for the six month ending June, 2024. The dividend will be paid in dividend in US dollars on June 28, 2024, to shareholders of record as of the close of business on June 20, 2024 (Aranzazu mine, Zacatecas).
Infinitum Copper Corp., closed its previously announced non-brokered private placement for gross proceeds of CAD $450K for the sale of 11,250,000 units at a price of CAD $0.04 per unit. Gross proceeds will be used to re-commencing operations at La Adelita project, Sonora. The company plans to clear a path to the existing adit at Cerro Grande and commence the construction of a short 3m x 3m drive to access the mineralized body identified in earlier drilling campaigns.
Silver Spruce Resources Inc., announced that the TSX has granted an extension to the closing of the second tranche of its previously announced private placement. The company is now required to close the second tranche of the private placement on or before June 14, 2024, but expects to do so in advance thereof (Pino de Plata project, Chihuahua).
Orex Minerals Inc., closed the final tranche of its non-brokered private placement for gross proceeds of $662,992. The final tranche was comprised of 4,419,951 units of the company issued at a price of $0.15 per unit. In total, the company raised $1M pursuant to the offering, having previously closed a tranche on May 10, 2024, that raised an aggregate of $337K. The company intends to use the net proceeds from the offering for working capital requirements and other general corporate purposes, which includes legal and financing fees as part of this offering (Sandra project, Durango).
Starcore International Mines Ltd., closed its non-brokered private placement, raising $500K in gross proceeds through the issuance of 3,333,333 units at a price of $0.15 per unit. Gross proceeds will be used primarily to conduct metallurgical testing of the carbonaceous ore at Starcore’s San Martin Mine operations in Queretaro.
Oroco Resources Corp., completed its previously announced non-brokered private placement for gross proceeds of $6.3M by the issuance of 14,051,127 units of the company at a price of $0.45 per unit. Oroco will use the net proceeds to advance its Santo Tomás project in Sinaloa, as well as working capital and other general corporate purposes.
Dyna Resource extended its commercial offtake agreement of USD $4M with Ocean Partners through December 2028 with revised terms including a temporary additional credit line and to increase revolving credit line to USD $12.5M. Additionally, major shareholder Golden Post LLC is set to purchase USD $2.5M shares at a price of USD $1.61 per share. These developments are expected to provide financial support and opportunities for DynaResource´s growth and operations.

ON RESOURCES AND DEVELOPMENT

Tocvan Ventures Corp., and its JV partner Colibri Resource Corporation released results from its 2024 RC drilling program from its Pilar project in Sonora. Drilling highlights are shown in the table below:

Over 2,700 meters have been drilled to date for the 2024 program. Results for eight drill holes are currently pending analysis. Drilling is ongoing at Pilar project in Sonora.

Silver Storm Mining Ltd., added a second drill rig to commence a phase 2 drill program at its La Parrilla mine, Durango. The Phase 2 diamond drill program will consist of 7,500m and will be completed over the next three months following up on the initial holes drilled with the aim of converting inferred mineralization to indicated resources.
Atacama Copper Corporation released results from five holes of a 10,000m diamond drilling program at its Cristina project in Chihuahua. Drilling highlights (true widths reported) , all from the eastern portion of the Main Guadalupe Vein System include holes ACD24-226 with 0.63 g/t Au, 60 g/t Ag, 1.4% Zn, 0.6% Pb, and 0.04% Cu (2.5 g/t AuEq) over 22m, including 1.08 g/t Au, 283 g/t Ag, 3.8% Zn, 1.5% Pb, and 0.17% Cu (7.87 g/t AuEq) over 1.3m, plus 1.36 g/t Au, 87 g/t Ag, 3.3% Zn, 1.8% Pb, and 0.06% Cu (5.09 g/t AuEq) over 2.7m; hole ACD24-229 with 0.93 g/t Au, 114 g/t Ag, 2.6% Zn, 1.4% Pb, and 0.23% Cu (4.76 g/t AuEq) over 3.8m, including 0.77 g/t Au, 214 g/t Ag, 5.2% Zn, 2.4% Pb, and 0.45% Cu (8.1% AuEq) over 1.8m, plus 1.49 g/t Au, 31 g/t Ag, 0.8% Zn, 0.2% Pb, and 0.02% Cu (2.49 g/t AuEq) over 14.5m, including 3.32 g/t Au, 46 g/t Ag, 0.9% Zn, 0.3% Pb, and 0.01% Cu (14.88 g/t AuEq) over 5m, including 13.8 g/t Au, 30 g/t Ag, 1% Zn, 0.4% Pb, and 0.01% Cu (5.54 g/t AuEq) over 0.8m; and hole ACD24-230 with 0.62 g/t Au, 300 g/t Ag, 1.1% Zn, 0.4% Pb, and 0.01% Cu (5.54 g/t AuEq) over 2.4m, including 0.76 g/t Au, 867 g/t Ag, 2.1% Zn, 0.6% Pb, and 0.01% Cu (14.13 g/t AuEq) over 0.8m, plus 0.53 g/t Au, 13 g/t Ag, 0.9% Zn, 0.3% Pb, and 0.04% Cu (1.32 g/t AuEq) over 49m, including 4.11 g/t Au, 49 g/t Ag, 1.1% Zn, 0.2% Pb, and 0.03% Cu (5.48 g/t AuEq) over 2.70m, including 11.05 g/t Au, 65 g/t Ag, 1.2% Zn, 0.3% Pb, and 0.03% Cu (12.73 g/t AuEq) over 0.8m, and including 1.65 g/t Au, 50 g/t Ag, 5.7% Zn, 0.9% Pb, and 0.26% Cu (6.11 g/t AuEq) over 2.6m. “These latest holes continue to support our goal of delineating and expanding the known higher-grade zones within the Guadalupe vein system to define a robust underground resource at Cristina. Not only are we seeing the expected higher-grade zones, but these are frequently set within broader intervals of lower grade material that may be amenable to bulk underground mining as is carried out successfully at Fresnillo’s nearby San Julian mine.”

ON DEALS AND CORPORATE ISSUES

Colibri Resource Corporation announces the listing of its common shares on the Frankfurt Stock Exchange (FSE) under the trading symbol “2CO1” (Pilar project, Sonora).
Discovery Silver Corp., notified the appointment of its Vice President, Investor Relations effective immediately (Cordero project, Chihuahua).
Sierra Metals Inc., filed its management information circular in connection with the company´s upcoming annual meeting of shareholders. The Meeting will be held on Tuesday, June 25, 2024 at 10:00 a.m. Eastern Time (Bolivar mine, Chihuahua).
Sonoran Desert Copper Corporation reported that it has been delayed in filing its audited annual financial statement for its financial year ended December 31, 2023, and the related Management’s Discussion and Analysis and Certifications by the Chief Executive Officer and Chief Financial Officer. The Issuer therefore applied to the British Columbia Securities Commission, the Alberta Securities Commission, and the Autorite des marches financiers (Quebec) pursuant to Part 4 of the National Policy 12-203 for a Management Cease Trade Order as an alternative to a general Cease Trade Order in connection with the Default of the Required Filings. (Cuatro Hermanos project, Sonora).
Bear Creek Mining Corporation reported voting results from its annual general meeting of shareholders and announced the appointment of officers (Mercedes mine, Sonora).
Chesapeake Gold Corp., reported that that it and Alderley Gold Corp., the Company’s wholly-owned subsidiary, have completed the acquisition of the patents, patent applications and certain other technology rights and assets for the sulphide leaching technology from Hycroft Mining Holding Corporation and its wholly-owned subsidiaries. On closing, Chesapeake paid $2M in cash and issued 1,026,518 common shares of the company at a deemed share price of $2.92 per share (Metates project, Durango).
Angel Wing Metals Inc., granted stock options to employees and consultants of the company. It granted 1,055,000 stock options at an exercise price of $0.15 (La Reyna, Nayarit).
Gatos Silver Inc., presented voting results from its annual general meeting of shareholders (Cerro Los Gatos mine, Chihuahua).
DynaResource Inc., announced the appointment of its President, CEO, Interim CFO and Director. It also announced that the former President and CEO resigned and will continue to assume the role of Chairman of the Board of Directors (San Jose de Gracia mine, Sinaloa).
Vizsla Silver Corp., announced that the independent proxy advisory firms ISS and Glass Lewis recommended that Vizsla Silver shareholders vote for the proposed arrangement with Vizsla Royalties Corp at the upcoming special meeting of shareholders. This spinout by way of a plan of arrangement is seen as a valuable opportunity for shareholders to create additional exposure to the Panuco district and potential new discoveries. The meeting is scheduled for June 17, 2024, in Vancouver, British Columbia.

ON SOCIAL RESPONSIBILITY

Gold Royalty Corp., published its 2023 Sustainability Report an Asset Handbook. Highlights include an announced inaugural sustainability-linked-co-investment of $300K provided to enhance the sustainability impact in one their mines; its portfolio had a carbon intensity of 0.25 T CO2E/GEO, representing one of the lowest carbon intensities in the royalty and streaming sector; its contribution to diverse communities causes, including arts, culture, scholarships, and mental health; and the 100% review of new royalty and streaming agreements and opportunities through their enhanced ESG due diligence process (Cozamine mine., Zacatecas).

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, quartz-goethite stockwork veining with malachite stains in an IOCG system in a project in Sonora, Mexico. Photo taken by Miguel A Heredia.

The Mining and Exploration News in Mexico: Highlights on the First Week of March, 2024

March 10, 2024 / gambusinoprospectormexico / Leave a comment

Quartz-barite-specularite vein

By Miguel A Heredia

During the 10^thweek of the year (March 4^thto March 10^th, 2024), at least 24 press releases were announced by companies working in Mexico, with eight disclosing deals and corporate issues, five communicating production results, four announcing financing issues, four informing on exploration results, and three reporting resources and developments of their projects. ON MEXICO ISSUES, no relevant news. ON EXPLORATION, In Sonora, Tocvan reported surface exploration results from areas located over 6km north of the El Pilar Main Zone at its Pilar project, and Aztec reported final results from the 2023 RC drilling from its Cervantes project. In Chihuahua, Radius secured funding to commence drilling at the Plata Verde project. In Durango, Centenario Gold announced results from the first drill program on its Eden project. ON MINING, SilverCrest announced that it will file its audited annual financial statement and management discussion and analysis for the fiscal year ended December 31, 2023 on March 11th, 2024 (Las Chispas mine, Sonora). Argonaut reported Q3 and year-end 2023 production and financial results from their Mexican operations. Fortuna released Q3 and end-year production results from its San Jose mine in Oaxaca. Luca Mining reported production results from its Tahuehueto, Durango and provided an update on its Campo Morado, Guerrero mine operation. MAG Silver reported a preliminary 2024 Juanicipio, Zacatecas guidance. ON FINANCING, Capitan Silver announced that it intends to rise CAD $1.5M by way of a non-brokered private placement (Cruz de Plata project, Durango). Infinitum Copper announced a private placement (amended later on) for gross proceeds of up to CAD $450K (Adelita project, Sonora). Reyna Silver increased the size of its non-brokered private placement and announced the second closing of the life offering and the first closing of the concurrent private placement (Guigui and Batopilas projects, Chihuahua). ON RESOURCES AND DEVELOPMENT, Tocvan reported that a RC drilling is to commence at its Pilar project in Sonora. Kootenay filed a NI 43-101 Technical Report on its La Cigarra project, Chihuahua. GR Silver provided an operational update and announced the start of a small bulk sampling and test mining at its Plomosas project in Sinaloa. ON DEALS AND CORPORATE ISSUES, US Antimony announced executive management changes. Golden Minerals announced that one member of its Board of Director has passed away (Velardeña property, Durango). Sierra Metals announced the appointment of its Vice President, Health, & Safety, effective March 1, 2024 (Bolivar mine, Chihuahua). Pan American announced that the Toronto Stock Exchange (TSX) accepted its intention to purchase up to 5% of Pan American´s issued and outstanding shares (La Colorada, Zacatecas-Durango). Goldgroup reported a contractor fatality at its Cerro Prieto mine in Sonora. Kootenay granted stock options to officers, directors, employees, and consultants (Columba project, Chihuahua). Defiance Silver confirmed ownership of the Tepal project in Michoacan. ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUE

No relevant news.

ON EXPLORATION

Tocvan Ventures Corp., reported surface exploration results from areas located over 6km north of Pilar´s Main Zone within its Pilar project in Sonora. Sampling returned very high-grade silver with gold values.. Two samples yielded 1,225 g/t Ag with 3.2 g/t Au and 744 g/t Ag with 0.2 g/t Au from sample material next to historical artisanal workings. One of the samples also show higher polymetallic association returning 0.42% Cu, 3.4% Zn, and over 20% Pb (assay over limit was reached).
Aztec Minerals Corp., reported final results from the 2023 RC drilling from its Cervantes project. The RC drilling program consisted of 1,646m in 13 holes testing the California porphyry gold target. All drill holes intersected oxidized Au mineralization; the California target continues to be open; the California target now has an area of 1,000m by 300m drill demonstrated; and the California target was found to continue on strike to the east at least another 400m. The multi-element ICP results show good, positive relationships between Au, Cu, Bi, Ag, As, W and K (potassic alteration), negative relationships with Mo, Sb and Ca. The multi-element grades support the potential for an Au-Cu porphyry deposit at depth.
Radius Gold Inc., secured funding to commence drilling at the Plata Verde project in Chihuahua, Mexico, through an option agreement with Minera San Julian and Geometales del Norte-Geonorte. The initial investment for mobilizing drilling and field teams is USD $250K, with additional funding to follow as approved by technical committee. The project has shown significant silver mineralization and historical production potential. Minera San Julian aims to spend a minimum of USD $4,762,000 over four years on exploration activities at Plata Verde and has the right to earn a 70% interest in the project.
Centenario Gold Corp., announced results from the first drill program on its Eden project in Durango. The company completed 1,506m in 11 core holes “testing the strike and downdip extensions of the mineralized structure along a section of the ‘Buenavista’ corridor”. All holes intersected the ‘Buenavista’ vein-breccia structure at depths ranging between 50 to 110 m. Assay results have been received on 9 of the 11 holes. Assays are pending for holes ED24-09 and ED24-11 and will be released when received.

ON MINING

SilverCrest Metals Inc., announced that it will file its audited annual financial statement and management discussion and analysis for the fiscal year ended December 31, 2023 on March 11th, 2024 (Las Chispas mine, Sonora).
Argonaut Gold Inc., reported Q3 and year-end 2023 production and financial results from their Mexican operations (all dollar amounts are expressed in USD). In Q3, 2023, the company sold at La Colorada, Sonora, 7,967 Oz Au; reported cost of sales for $13,998,000; a cost of sales per Oz Au sold of $1,757; production costs of $10,353,000; a cash cost of $10,066,000; a cash cost per Oz Au sold of $1,263; and all in sustaining cost (AISC) of $1,316. For the year-end, it sold 25,957 Oz Au; reported cost of sales for $48,556,000; a cost of sales per Oz Au sold of $1,871; production costs of $39,057,000; a cash cost of $38,065,000; a cash cost per Oz Au sold of $1,466; and AISC of $1,532. At San Agustin, Durango, the company sold in Q3, 2023 9,556 Oz Au; reported cost of sales for $17,624,000; a cost of sales per Oz Au sold of $1,844; production costs of $16,000,000; a cash cost of $15,249,000; a cash cost per Oz Au sold of $1,596; and AISC of $1,631. For the year-end, it sold 44,148 Oz Au; reported cost of sales for $81,324,000; a cost of sales per Oz Au sold of $1,842; production costs of $71,263,000; a cash cost of $66,867,000; a cash cost per Oz Au sold of $1,515; and AISC of $1,552. At El Castillo, Durango, the company sold in Q3, 2023 4,353 Oz Au; reported cost of sales for $6,362,000; a cost of sales per Oz Au sold of $1,462; production costs of $6,009,000; a cash cost of $5,972,000; a cash cost per Oz Au sold of $1,372; and AISC of $1,402. For the year-end, it sold 21,325 Oz Au; reported cost of sales for $36,005,000; a cost of sales per Oz Au sold of $1,688; production costs of $32,252,000; a cash cost of $31,837,000; a cash cost per Oz Au sold of $1,493; and AISC of $1,518.
Fortuna Silver Mines Inc., released Q3 and end-year production results from its San Jose mine in Oaxaca. In Q3, 2023, the company milled 241,035 tonnes of 145 g/t Ag and 0.91 g/t Au with metallurgical recoveries of 91% and 90% respectively, to produce 1,023,325 Oz Ag and 6,345 Oz Au of which sold 1,040,888 Oz Ag and 6,046 Oz Au at an average realized price of USD $23.35 per Oz Ag and USD $1,983 per Oz Au. Fortuna reported a production cash and AISC of USD $17.57 and USD $21.98 per Oz AgEq respectively. In the full year 2023, the company milled 930,200 tonnes of 171 g/t Ag and 1.06 g/t Au with metallurgical recoveries of 91% and 90% respectively, to produce 4,656,631 Oz Ag and 28,559 Oz Au of which sold 4,659,611 Oz Ag and 28,524 Oz Au at an average realized price of USD $23.36 per Oz Ag and USD $1,942 per Oz Au. Fortuna reported a production cash and AISC of USD $14.40 and USD $19.40 per Oz AgEq respectively.
Luca Mining Corp. reported production results from its Tahuehueto, Durango and provided an update on its Campo Morado, Guerrero mine operation. At Tahuehueto, Durango, the mine achieved a new daily production record of 655 tonnes last week. The mine plan calls for the ramp-up to an approximate 1,000 tonne per day operation during 2H 2024 which is rapidly being achieved. At Campo Morado, Guerrero, “the optimization program has to date developed fundamental improvements in productivity, operational efficiency and cashflow. Key features of the program include effective mine-to-mill planning, new procedures for ore blending, increased metallurgical test work, optimized grinding and reagent dosing for improved recoveries, and phased equipment upgrades for mine and mill”.
MAG Silver Corp., reported a preliminary 2024 Juanicipio, Zacatecas guidance. MAG Silver reported preliminary guidance for the production potential of the high-grade Juanicipio Mine jointly owned by Fresnillo and MAG. The silver head grade is expected to range between 380 g/t and 420 g/t for 2024, with the plant anticipated to operate at nameplate capacity per operating day with an effective utilization of 91%. MAG remains on schedule to publish its updated technical report by the end of Q1 2024, providing more definitive guidance and solidifying the outlook for the Juanicipio Mine.

ON FINANCING

Capitan Silver Corp., announced that it intends to rise CAD $1.5M by way of a non-brokered private placement of 10M common shares at a price of CAD $0.15 per share. Gross proceeds will be used to advance Cruz de Plata project in Durango, to evaluate potential acquisitions, as well as to fund working capital and general corporate expenses.
Infinitum Copper Corp., announced a private placement (amended later on) for gross proceeds of up to CAD $450K through the issue of up to 22.5M units of the company at a price of CAD $0.02 per unit. Each unit will be comprised of one common share of the company and one common share purchase warrant. Net proceeds will be used for the establishment of mining operations at La Adelita project in Sonora, and for general corporate purposes.
Reyna Silver Corp., increased the size of its non-brokered private placement from $2.5M to $2.9M, and announced the second closing of the listed issuer financing exemption (LIFE) offering of 8,240,666 units for gross proceeds of approximately $988,880, and the first closing of the concurrent private placement of 12,401,610 units for gross proceeds of approximately 1,488,193. The company plans to use part of the net proceeds for the exploration of Guigui and Batopilas projects, Chihuahua.

ON RESOURCES AND DEVELOPMENT

Tocvan Ventures Corp., reported that a RC drilling is to commence at its Pilar project in Sonora for resource definition and expansion, as well as evaluation of new discoveries and targets. “The initial focus will be on infill and step-out targeting within and adjacent to the Pilar Main Zone including where previous drill campaigns successfully discovered the southern extension of the Main Zone, returning 108.6 meters of 0.8 g/t Au, including 9.4 meters of 7.6 g/t Au and 5 g/t Ag”.
Kootenay Silver Inc., filed a NI 43-101 Technical Report titled “Mineral Resource Estimate Update for the La Cigarra Ag-Pb-Zn Project, Chihuahua State, Mexico” with an effective date of November 29, 2023.
GR Silver Mining Ltd., provided an operational update and announced the start of a small bulk sampling and test mining at its Plomosas project in Sinaloa. GR Silver Mining has entered commercial agreements with private local operators to explore opportunities related to the Plomosas Project. The company has started the Bulk Sampling Test Mining (BSTM) program for future use in engineering and metallurgical reports at the San Juan and La Colorada sites, which has the potential to unveil valuable geological information related to high-grade modeling & targeting, grade reconciliation, and mineral deposit modeling to define new drill targets in the vicinities of the existing historical mines. The BSTM program will allow low-cost preparation of sites for future drilling, aiming to continue resource expansion in the project.

ON DEALS AND CORPORATE ISSUES

US Antimony Corporation announced executive management changes. Its previous CEO was appointed as President of the Company’s Antimony Division after relinquished his title as a CEO of US Antimony Corporation (Los Juarez project, Queretaro).
Golden Minerals Company announced that one member of its Board of Director has passed away (Velardeña property, Durango).
Sierra Metals Inc., announced the appointment of its Vice President, Health, & Safety, effective March 1, 2024 (Bolivar mine, Chihuahua).
Pan American Silver Corp., has announced a normal course issuer bid to purchase up to 5% of its issued and outstanding shares starting on March 6, 2024. The purchases will be made on the open market through various trading platforms. The company believes that its shares may not fully reflect its underlying value, making them an attractive investment. The bid will be funded from the company’s working capital, and purchases will be made at market prices. Pan American has established an automatic securities purchase plan to facilitate share repurchases. (La Colorada, Zacatecas-Durango).
Goldgroup Mining Inc., reported a contractor fatality at its Cerro Prieto mine in Sonora. Relevant regulatory authorities were notified and attended the site to investigate.
Kootenay Silver Inc., granted stock options to officers, directors, employees, and consultants to purchase up to an aggregate of 1,310,000 million shares and issued restricted share and deferred units totalling 905,000 common shares. The stock options have been granted at a price of $0.90 per common share for a period of five years.
Defiance Silver Corp., confirmed ownership of the Tepal project in Michoacan. The Mexican Court restored the Company’s rightful ownership to the mining concessions forming part of the Tepal project. As a result, the judgement is now fully enforceable, and Geologix Explorations Mexico, S.V de C.A, a subsidiary of the Company, is now confirmed as the legitimate and rightful owner of the concessions.

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 quartz-barite-specularite vein on a project of the Sonoran Desert. Photo taken by Miguel A Heredia.

The Mining and Exploration News in Mexico: Highlights on the Fourth Week of February, 2024

February 25, 2024 / gambusinoprospectormexico / Leave a comment

Rhyolite dike showing flow banded texture

By Miguel A Heredia

During the 8^thweek of the year (February 19^thto February 25^th, 2024), at least 29 press releases were announced by companies working in Mexico, with ten communicating production results, eight reporting resources and developments of their projects, five disclosing deals and corporate issues, four announcing financing issues, one commenting on Mexican issues, and one informing on exploration results. ON MEXICO ISSUES, Orla Mining, Silver Storm, and Prismo Metals reported the best drilling intercepts in Mexico on the fourth week of February, 2024. ON EXPLORATION, In Sonora, Prismo provided an exploration update on its Pavitos project. ON MINING, Aura reported Q4 and year-end 2023 production and financial results from its Aranzazu mine in Zacatecas, and provided guidance for 2024. Gatos Silver announced Q4 and year-end 2023 production and financial results from its Cerro Los Gatos mine, Chihuahua, and provided 2024 guidance. Capstone released Q4, 2023 production results from its Cozamin mine, Zacatecas. Alamos Gold announced Q4 and year-end 2023 production and financial results from its Mulatos mine, Sonora. Coeur reported Q4 and year-end 2023 production and financial results from its Palmarejo mine in Chihuahua. Equinox provided 2024 production guidance for its Los Filos mine, Guerrero. Minera Alamos announced 2024 operational outlook for its Santana mine in Sonora. Torex reported Q4 and year-end 2023 production results from its El Limon-Guajes Mine Complex, Guerrero. First Majestic announced Q3 and year-end production and financial results from their Mexican operations. SilverCrest provided 2024 production guidance for its Las Chispas mine, Sonora. ON FINANCING, Kootenay closed the final tranche of its previously announced non-brokered private placement for gross proceeds of $237.5K to complete a total aggregate gross proceeds of $3.7M (Columba project, Chihuahua). Oroco announced the closing of a non-brokered private placement for net proceeds of $1M (Santo Tomas project, Sinaloa). Sonoran Dessert declared that in response to the continuing weakness in the junior resource sector, the company will be reducing the price and increasing the amount of its private placement financing. Vizsla announced $30M bought deal financing (Panuco project, Sinaloa). ON RESOURCES AND DEVELOPMENT, Vizsla filed an independent technical report containing an updated Mineral Resource Estimate on its Panuco project in Sinaloa. Luca reported significant improvements at its Campo Morado mine, Guerrero. Alamos Gold reported Mineral Resources and Reserves at its Mulatos mine operation in Sonora, as of December 31, 2023. Silver Storm released results from three holes drilled at its la Parrilla mine in Durango. Silver Tiger provided an update on the Company’s ongoing Pre-feasibility Study (PFS) drilling program on the Stockwork Gold Deposit on its El Tigre Project in Sonora. Orla discovered new style of mineralization at its Camino Rojo project in Zacatecas and recent drilling extended mineralization beyond the current mineral resource envelope, presenting a considerable opportunity for resource expansion. Prime Mining provided a summary of the 2023 exploration activities and released the final 2023 drilling results for its Los Reyes Gold-Silver Project in Sinaloa. Discovery Silver announced results from the Feasibility Study (FS) on its Cordero project, Chihuahua. ON DEALS AND CORPORATE ISSUES, Trident Royalties Plc, in a joint venture with Sonoroy Holdings Limited, is acquiring a 3.0% Gross Revenue Royalty over the Sonora Lithium Project in Mexico. Bear Creek announced the resignation of its CEO effective March 8, 2024, and later on appointed its successor (Mercedes mine, Sonora). DynaResource announced the resignation of two Directors and appointed two new members to its Board of Directors. The resignations and appointments are effective February 16, 2024 (San Jose de Gracia project, Sinaloa). Tarachi notified that its CEO was elected to the Board of Directors (Magistral Mill & Tailings project, Durango). ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUE

Orla Mining Ltd., Silver Storm Mining Ltd., and Prismo Metals Inc., reported the best drilling intercepts in Mexico on the fourth week of February, 2024. Details are shown in the table below:

ON EXPLORATION

Prismo Metals Inc., provided an exploration update on its Pavitos project in Sonora. Prismo Metals has reported positive results from its ongoing exploration program at Los Pavitos, a 5,300 ha Project in southern Sonora State, Mexico. The 2023 exploration program included geologic mapping, sampling, and drilling that resulted in identifying 5 structures and positive results from 4 widely-spaced structures. The best results from the drilling were 2.6 g/t Gold over 0.5m and 1.18 g/t Gold over 0.5m at the Las Auras and Oromuri structures. In addition, a new zone with several structures was identified and sampled in the previously unexplored northeastern portion of the project area. Surface sampling along the northeastern projection of the gold and silver-rich Santa Cruz structure yielded high silver assay of 1,130 g/t Ag, with 1.33 g/t Au over 0.15 meters. Based on the exploration results, Los Pavitos gold footprint has grown 2.5 km to the northeast and silver footprint also grew 1 km.

ON MINING

Aura Minerals Inc., reported Q4 and year-end 2023 production and financial results from its Aranzazu mine in Zacatecas, and provided guidance for 2024. In Q4, 2023, the company produced at its Aranzazu mine 26,532 Gold Equivalent Ounces (GEO), for a total of 106,119 GEO. It also provided guidance for 2024 and estimate to produce between 94K-108K GEO at cash and all in sustaining costs of USD $826-1008 and USD $1,089-1,331 per Oz Au produced respectively.
Gatos Silver Inc., announced Q4 and year-end 2023 production and financial results from its Cerro Los Gatos mine, Chihuahua and provided 2024 guidance (the reported currency is USDS $). The company has a 70% interest in the Los Gatos JV. Los Gatos JV (100% basis) milled in Q4, 2023 a total of 277,318 tonnes of 318 g/t Ag, 3.9% Zn, 1.9% Pb, and 0.3 g/t Au to produce 2.6M Oz Ag, 14.6M Lb Zn, 10.2M Lb Pb, and 1.4K Oz Au (3.9M Oz AgEq) at cash and all in sustaining costs of $11.26 and $14.73 per Oz AgEq respectively ($6.02 and $11.12 per Oz Ag). In the 2023 full year, the company milled a total of 1,071,400 tonnes of 299 g/t Ag, 3.9% Zn, 1.8% Pb, and 0.29 g/t Au to produce 9.2M Oz Ag, 57.3M Lb Zn, 38.9M Lb Pb, and 5.3K Oz Au (14.3M Oz AgEq) at cash and all in sustaining costs of $12.11 and $15.51 per Oz AgEq respectively ($6.31 and $11.33 per Oz Ag). Gatos Silver also reported for the period Q4, 2023 revenue of $73.5M; cost of sales of $28M; net income of $24.9M; EBIDTA of $38.6M; cash from operating activities of $38.2M; sustaining capital of $11.7M; and free cash flow of $22.3M. For the 2023 year full it reported revenue of $268.7M; cost of sales of $111.3M; net income of $53.4M; EBIDTA of $135.8M; cash from operating activities of $142M; sustaining capital of $41.6M; and free cash flow of $84.9M. The company expects to produce in 2024 between 8.4-9.2M Oz Ag, 61-69M Lb Zn, 40-46M Lb Pb, and 4.5-5.5K Oz Au (13-5-15M Oz AgEq) at a all in sustaining cost of $9.50-$11.50 per Oz Ag (or $14-$16 per Oz AgEq).
Capstone Copper Corporation released Q4, 2023 production results from its Cozamin mine, Zacatecas. The company processed 6,564 tonnes to produce 14.8M Lb Cu at a cash cost of USD $1.76 per Lb Cu produced. Capstone provided an outlook for 2024 and expects to produced between 49.3-53.8M Lb Cu at cash cost of USD $1.85-USD $2.05 per Lb Cu produced.
Alamos Gold Inc., announced Q4 and year-end 2023 production and financial results from its Mulatos mine, Sonora. During the period Q4, 2023, the company produced 48.1K Oz Au and sold 50,489 Oz Au. Alamos reported cost of sales of USD $68.3M; cost of sales per Oz Au sold (including amortization) of USD $1,353; total cash cost per Oz Au sold of USD $957; mine site all in sustaining cost (AISC) per Oz Au sold of USD $1,030; and a capital expenditure of USD $8.4M. For the year-end 2023, Alamos produced 212,800 Oz Au and sold 215,833 Oz Au. The company reported cost of sales of USD $265.9M; cost of sales per Oz Au sold (including amortization) of USD $1,232; total cash cost per Oz Au sold of USD $883; mine site AISC Oz Au sold of USD $967; and a capital expenditure of USD $30.4M. It also provided its 2024 guidance and expects to produce between 160-170K Oz Au at total and AISC of USD $925-975, and USD $1,000-1,050 per Oz Au sold respectively.
Coeur Mining Inc., reported Q4 and year-end 2023 production and financial results from its Palmarejo mine in Chihuahua. Highlights are provided below:

Equinox Gold Corp., provided 2024 production and cost guidance for its Los Filos mine, Guerrero. The company expects to produce 155K-175K Oz Au at cash costs of USD $1,785- $1,885 per Oz Au and AISC of USD $2,090- $2,190 per Oz Au.
Minera Alamos Inc., announced 2024 operational outlook for its Santana mine in Sonora. The company is looking forward to significant advancements at the Santana gold mine in 2024 after facing challenges in 2023. It plans to expand mining and stacking operations using the current permitted pad space while awaiting permit amendments for future expansion. The company is finalizing plans for the year, including discussions with their mining contractor and permit approvals. Advanced development activities have already begun at the Nicho Main zone to support the new operational plan. Upgrades to equipment and personnel are expected to increase production levels from 2023. “Approximately 20K Oz Au at an average grade of 0.63 g/t and an approximate strip ratio of 1.6:1has now been defined for mining and loading over a 12-month schedule utilizing the current leach pad installed capacity. Included in the current plan are an additional 4,500 Oz of higher grade (~1 g/t) mineralized material. Due to its elevated gold content, this mineralization will be stockpiled initially for future processing pending additional studies to determine an optimal approach for crushing and processing to maximize recoveries”.
Torex Gold Resources inc., reported Q4 and year-end 2023 production results from its El Limon-Guajes Mine Complex, Guerrero (all currency is reported in USD$). In Q4, 2023, the company produced 137,993 Oz Au and sold 138,794 Oz Au at an average realized gold price of $1,995, contributing to revenue of $282.4M. Total cash costs of $885 per Oz Au sold and all-in sustaining costs of $1,073 per Oz Au sold. Cost of sales was $191.6M or $1,380 per Oz Au sold. Torex reported net income of $50.4M, generated an EBITDA and adjusted EBITDA of $115.4M and $142.6M respectively. Net cash generated from operating activities totalled $120M and $133.5M before changes in non-cash operating working capital, including income taxes paid of $12M and negative free cash flow of $24.3M. In the full-year 2023, the company produced 453,778 Oz Au and sold 444,750 Oz Au at an average realized gold price of $1,952, contributing to revenue of $882.6M. Total cash costs of $866 per Oz Au sold and all-in sustaining costs of $1,200 per Oz Au sold. Cost of sales was $600.1M or $1,349 per Oz Au sold. Torex reported net income of $204.4M, generated an EBITDA and adjusted EBITDA of $422.6M and $442.2M respectively. Net cash generated from operating activities totalled $300.8M and $340.8M before changes in non-cash operating working capital, including income taxes paid of $116.2M and negative free cash flow of $185.4M.
First Majestic Silver Corp., announced Q3 and year-end production and financial results from their Mexican operations. Figures by separate mine are provided below:

SilverCrest Metals Inc., provided 2024 production guidance for its Las Chispas mine, Sonora. The company expects to produce between 9.8-10.2M Oz AgEq at cash and AISC of USD $9.5-$10 and USD $15-$15.90 per Oz AgEq sold respectively. Sustaining Capital of USD $40M-$44M will be largely related to underground development and underground infrastructure. An exploration budget within a range of USD $12M-$14M has been approved for 2024 with a focus on converting inferred resources to indicated for reserve consideration in proximity to existing or planned infrastructure, return to early stage exploration at Las Chispas, and regionally define new targets that could benefit mine life extensions.

ON FINANCING

Kootenay Silver Inc., closed the final tranche of its previously announced non-brokered private placement for gross proceeds of $237.5K to complete a total aggregate gross proceeds of $3.7M from the offering. Net proceeds will be used for exploration activities, property commitments on the Company’s projects, working capital and general corporate purposes (Columba project, Chihuahua).
Oroco Resource Corp., announced the closing of a non-brokered private placement for net proceeds of $1M through the sale of 2.57M units at a price of $0.4 per unit. Net proceeds will be used to continue improving various underlying aspects of the Company’s Preliminary Economic Assessment, including those relating to the Santo Tomas mine plan, together with property maintenance and corporate overhead.
Sonoran Dessert Copper Corporation declared that in response to the continuing weakness in the junior resource sector, the Company will be reducing the price and increasing the amount of its private placement financing. Previously, the company was offering up to 2.5M units priced at $0.20, for aggregate gross proceeds of up to $500K. The updated financing will now offer up to 10M units priced at $0.10, for aggregate gross proceeds of up to $1M. Proceeds from the financing will be used for general working capital, the continuing development of the company’s Cuatro Hermanos Copper Project in Sonora, and to evaluate and secure further opportunities in the copper sector.
Vizsla Silver Corp., announced $30M bought deal financing by selling 20M common shares at a price of $1.5 per common share. Net proceeds will be used to advance the exploration, drilling, and development of its Panuco project in Sinaloa, as well as for working capital and general corporate purposes.

ON RESOURCES AND DEVELOPMENT

Vizsla Silver Corp., filed an independent technical report containing an updated Mineral Resource Estimate on its Panuco project in Sinaloa.
Luca Mining Corp., reported significant improvements at its Campo Morado mine, Guerrero. Highlights include significantly improved overall performance in Q4, 2023 compared to previous quarters, yielding increased revenues; plant performance exceeded expectations with operational consistency; and higher metallurgical recoveries and concentrate grades, especially for copper in the bulk concentrate increasing from less than 48% recovery to over 70% recovery. Currently, Campo Morado produces a zinc concentrate, and a bulk copper-lead concentrate.
Alamos Gold Inc., reported Mineral Resources and Reserves as of December 31, 2023 for its Mulatos mine operation. Proven reserves are 1,032,000 of 3.98 g/t Au for a total of 132K Oz Au contained and probable reserves are 15,661,000 tonnes of 2.02 g/t Au for a total of 1.32M Oz Au contained. Proven + Probable reserves are 16,693,000 tonnes of 2.71 g/t Au for a total of $1.45M Oz Au contained. Mineral Resources are exclusive of Mineral Reserves, and the company reported measured resources for 1,333,000 tonnes of 1.76 g/t Au for a total of 76K Oz Au contained and indicated resources for 10,284,000 tonnes of 1.48 g/t Au for a total of 488K Oz Au contained. Measured + Indicated resources are 11,617,000 tonnes of 1.51 g/t Au for a total of 564K Oz Au contained. Inferred resources are 1,651,000 tonnes of 1.07 g/t Au for a total of 57K Oz Au contained.
Silver Storm Mining Ltd., released results from three holes drilled at the Quebradillas mine within its la Parrilla property in Durango. Drilling highlights include holes Q-23-022A with 64 g/t Ag, 0.16 g/t Au, 0.9% Pb, 16.7% Zn, and 0.21% Cu (535 g/t AgEq) over 0.55m, plus 498 g/t Ag, 0.08 g/t Au, 6.5% Pb, 8.5% Zn, and 0.06% Cu (911 g/t AgEq) over 13.65m, including 1,350 g/t Ag, 0.23 g/t Au, 2.1% Pb, 8.4% Zn, and 0.06% Cu (2,361 g/t AgEq) over 2.60m, and 674 g/t Ag, 0.06 g/t Au, 5.4% Pb, 16.2% Zn, and 0.06% Cu (1,266 g/t AgEq) over 2.15m; and hole Q23-023 with 124 g/t Ag, 0.16 g/t Au, 0.6% Pb, 7.2% Zn, and 0.07% Cu (347 g/t AgEq) over 9.65m, including 136 g/t Ag, 0.18 g/t Au, 0.4% Pb, 8.7% Zn, and 0.08% Cu (397 g/t AgEq) over 5.3m. “Combined, these two holes have demonstrated the mineralization extends 74 metres below the last mined stope (1767 EL), with higher grades and widths than what was previously mined in this area”. More drilling will be allocated in this location in 2024.
Silver Tiger Metals Inc., provided an update on the Company’s ongoing Pre-feasibility Study (PFS) drilling program on the Stockwork Gold Deposit on its El Tigre Project in Sonora. The PFS aims to de-risk the Stockwork Deposit through the 25,000m drilling program focused on increasing confidence of the Mineral Resource with in-fill drilling expansion and classification, metallurgical and geotechnical as it progresses from an exploration to a development project. The company expects the publication of the PFS in H2-2024, and it continues to work on a substantial, permitted underground Mineral Resource Estimate and advance towards a Preliminary Economic Assessment by H2-2024.
Orla Mining Ltd., discovered a new polymetallic sulphide replacement-style mineralization at its Camino Rojo project in Zacatecas and recent drilling extended mineralization beyond the current mineral resource envelope, presenting a considerable opportunity for resource expansion. The drill program involved over 2,600 meters of drilling across four holes, with significant mineralized intercepts up to 450 meters down-plunge of the existing open pit mineral resource boundaries. Drilling highlights are provided in the table below:

The company also reported positive initial metallurgical results and plans to complete a 30,000-meter drill program in 2024 to further explore the extensive potential of the growing Camino Rojo Deposit.

Prime Mining Corporation provided a summary of the 2023 exploration activities and released the final 2023 drilling results for its Los Reyes Gold-Silver Project in Sinaloa. The company completed 58,896m of drilling over 184 holes following success-based exploration program; 162 drill holes intercepted mineralization above approximately 0.2 g/t Au cutoff. The drilling outlined indicated resources of 1M Oz Au at 1.16 g/t and 35M Oz Ag at 40 g/t Ag (1.47M Oz AuEq at 1.16 g/t), and inferred resources of 0.5M Oz Au at 0.85 g/t and 18.4M Oz Ag at 31 g/t (0.77M Oz AuEq at 1.26 g/t). The company is focused on resource expansion through new discoveries and technical de-risking activities. Prime advanced the metallurgical, geochemical, geotechnical and project understanding through testwork and field studies.
Discovery Silver Corp., announced results from the Feasibility Study (FS) on its Cordero project, Chihuahua. Highlights include 19-year mine life with average annual production of 37M Oz AgEq in Year 1 to Year 12; average AISC of less than USD $12.50 over the first eight years of the mine life; initial development capex of USD $606M resulting in an attractive after-tax NPV-to-capex ratio of 2.0; Base Case after-tax NPV5% (NPV) of USD $1.2 B and IRR of 22% with NPV expanding to USD $2.2 B in Year 4; Reserves of 302M Oz Ag, 840K Oz Au, 3 B Lb Pb, and 5.2 B Lb Zn; 240M tonnes of Measured & Indicated Resource sit outside the FS pit highlighting the potential to materially extend the mine life at modestly higher silver prices; an initial investment of over USD $600M, 2,500 jobs created during construction, USD $4 B of goods and services purchased and estimated tax contributions of over USD $1.4 B within Mexico; and third-party reviews of proposed environmental practices to ensure adherence to both Mexican regulatory standards and Equator Principles 4.

ON DEALS AND CORPORATE ISSUES

Trident Royalties Plc, in a joint venture with Sonoroy Holdings Limited, is acquiring a 3.0% Gross Revenue Royalty over the Sonora Lithium Project in Mexico. The completion date for the transaction has been extended to December 31, 2026, allowing time for resolution of ongoing litigation and administrative reviews. Trident has the option to terminate the joint venture based on the outcome of the litigation. The acquisition aims to provide exposure to a long-life lithium project with expansion potential, operated by Ganfeng Lithium Co., Ltd. The company’s strategy focuses on building a diversified mining royalty and streaming portfolio while targeting small-to-mid size transactions in resource-friendly jurisdictions worldwide.
Bear Creek Mining Corporation announced the resignation of its CEO effective March 8, 2024, and later on the Board of Directors appointed its successor effective on or about March 18, 2024 (Mercedes mine, Sonora).
DynaResource Inc., announced the resignation of two Directors and appointed two new members to its Board of Directors (San Jose de Gracia project, Sinaloa).
Tarachi Gold Corp., notified that its CEO was elected to the Board of Directors (Magistral Mill & Tailings project, Durango).

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 rhyolite dike showing flow banded texture on a project of the Sonoran Desert. Photo taken by Miguel A Heredia.

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

February 11, 2024 / gambusinoprospectormexico / Leave a comment

Silica sinter

By Miguel A Heredia

During the 6^thweek of the year (February 5^thto February 11^th, 2024), at least 25 press releases were announced by companies working in Mexico, and 3 news published by the media with eight reporting resources and developments of their projects, six announcing financing issues, five disclosing deals and corporate issues, four commenting on Mexican issues, two communicating production results, two informing on exploration results, and one discussing social issues. ON MEXICO ISSUES, Analysts announced that Q4, 2023 reports will be disparate on the Stock Market. President Andrés Manuel López Obrador (AMLO) has presented 20 proposals for constitutional reforms in Mexico. AMLO presented initiative to prohibit open pit mining. Orla Mining, First Majestic, Prismo Metals, and Prime Mining reported the best drilling intercepts in Mexico on the second week of February, 2024. ON EXPLORATION, In Sinaloa, Prismo provided an exploration update on its Palos Verdes project. In Durango, Silver Dollar acquired from Canasil a 100% interest in the Nora project, and provided a project update. ON MINING, Argonaut announced that it will report Q4 and year-end 2023 production and financial results of their Mexican operations on March 6, 2024. GoGold released Q1, 2024 production and financial results from its Parral Tailings project, Chihuahua. ON FINANCING, Capstone and Orion closed its previously announced CADS $431M bought deal offering (Cozamine mine, Zacatecas). Defiance announced a non-brokered private placement for gross proceeds of up to CAD $3M (San Acacio project, Zacatecas). Kootenay increased the size of its previously announced non-brokered private placement to $3.5M (Columba project, Chihuahua). Sonoro announced a non-brokered private placement for gross proceeds of up to CAD $1M (Cerro Caliche project, Sonora). Regency Silver extended the closing its private placement (Dios Padre project, Sonora). Zacatecas Silver upsized and closed its previously announced private placement from $1.8M to $2.5M (Zacatecas Silver project, Zacatecas). ON RESOURCES AND DEVELOPMENT, Luca Miningprovided an update progress at its Tahuehueto property in Durango. Avino presented the results of the Pre Feasibility (PFS) for its Oxide Tailings project at its Avino mine operation in Durango. Sierra Madre provided an update on La Guitarra mine in the State of Mexico. Heliostar announced that it is evaluating test mining scenarios for its Ana Paula project, Guerrero in 2024. Orla concluded its 2023 Camino Rojo Sulphides Infill program in Zacatecas with strong results. Prime Mining released results from the 2023 drilling program at the Z-T Area within its Los Reyes project, Sinaloa. First Majestic reported positive exploration results from their San Dimas property in Durango, and Santa Elena property in Sonora. Torex provided a Q4, 2023 update on its Media Luna project in Guerrero. ON DEALS AND CORPORATE ISSUES, Capstone announced that it has commenced trading on the Australian Securities Exchange (Cozamin mine, Zacatecas). Colibri appointed Douglas Coleman to its Advisory Board (Evelyn project, Sonora). Fabled Silver terminated its letter of intent with Kootenay with respect to the proposed acquisition the Mecatona Property, Chihuahua. Luca Mining appointed a new member to its Board of Directors (Tahuehueto project, Durango). Defiance clarified technical disclosures pertaining to its technical reports related to their Tepal project, Michoacan and San Acacio project, Zacatecas. ON SOCIAL RESPONSIBILITY, Fortuna Silver announced its objectives, metrics, and targets to reduce Scope 1 and Scope 2 greenhouse gas (GHG) emissions (San Jose mine, Oaxaca).

ON MEXICO ISSUE

Analysts predict that the fourth quarter of 2023 will be a mixed bag for Mexican mining companies due to pressures on costs and falling prices of industrial metals. While some companies may benefit from increasing prices of precious metals like gold and silver, others will also face higher costs. Grupo Mexico has already reported weak financial results due to decreased sales of copper, while the other companies are expected to face similar challenges in 2024 due to China’s economic slowdown. Only Minera Frisco has generated a positive return so far this year among the four mining companies. Autlán is expected to make some sequential improvements due to cost-cutting efforts, but the industry as a whole is predicted to face challenges in the coming year. All of last year, only the companies that are part of the S&P/BMV stock index IPC Grupo México (+37.66%) and Peñoles (+3.58%) had gains on the Stock Market. While the share of Fresnillo, a subsidiary of Peñoles listed on the London Stock Exchange, lost 34.08%, that of Autlán lost 26.43% and that of Frisco lost 9.01%.
President Andrés Manuel López Obrador (AMLO) has presented 20 proposals for constitutional reforms in Mexico. One of the proposals is to return the Comisión Federal de Electricidad (CFE) to its status as a public, strategic, and nationally important company. AMLO also proposes to prohibit the extraction of hydrocarbons through hydraulic fracturing (fracking) and to not grant concessions to private companies for open-pit mining activities. However, in the economic budget planned for 2024, the government has contemplated two projects with fracking for MXP $4.63M, according to data from the organization Mexican Alliance against Fracking (AMCF). Currently, of the almost 250 mines that operate in the country, 97 are open pit metal mines and 152 more are underground mines; However, until March 2022, 15,551 mining concessions were registered in the country with validity after 2050. It should be noted that since the arrival of AMLO to the presidency, not a single mining concession has been granted, which has led the sector to have a drop in investment that decreased its participation in the national GDP, from 2.50 in 2021 to 2.46 percent in 2022, while in industrial GDP from 8.78% to 8.63%. The proposed reforms also aim to eliminate “costly and elitist” dependencies and organizations that were supposedly autonomous but disconnected from the interests of the people. Some of the autonomous bodies that could be affected by these proposals include the Comisión Reguladora de Energía (CRE), Comisión Nacional de Hidrocarburos (CNH), and Comisión Federal de Competencia Económica (COFECE). AMLO will submit these initiatives to the Chamber of Deputies for discussion in the current or next legislative session.
President Andrés Manuel López (AMLO) presented initiative to prohibit open pit mining. On February 5, on the anniversary of the Political Constitution of the United Mexican States, AMLO presented an Initiative with a Draft Decree to carry out various reforms, one of these being the prohibition of open pit mining. According to the initiative, addressed to Dip. Marcela Guerra Castillo, President of the Chamber of Deputies, in order to protect the environment and health, we seek to modify art. 27 constitutional to “prohibit both the granting of concessions and the activities of exploration, exploitation, benefit, use or exploitation of minerals, metals or metalloids in the open pit, with the addition that the people who carry out these activities will be sanctioned.” The AMLO project indicates that there are currently around 264 open pit mines in Mexico, and much emphasis is placed on the old vision of predatory mining, leaving aside that for a mine to operate in our country it must have more than a thousand rules and regulations, in addition to having comprehensive closure plans.
Orla Mining Ltd., First Majestic Silver Corp., Prismo Metals Inc., and Prime Mining Corp., reported the best drilling intercepts in Mexico on the second week of February, 2024. Details are shown in the table below:

ON EXPLORATION

Prismo Metals Inc., provided an exploration update on its Palos Verdes project in Sinaloa. Following the completion of its third drill campaign with 2,923 meters drilled in 15 holes, and in preparation of the upcoming expanded drill program to be drilled from Vizsla Silver Corp, Prismo completed an alteration and geochemical study that confirmed a downward offset of the mineralized ore shoot defined by drilling to date and that a second blind mineralized shoot may exist to the northeastern portion of the Palos Verdes vein, based on a geochemical sampling which revealed high-grade silver, gold, zinc, and lead values in the vein system. The best sample from this program assayed 930 g/t silver and 10.55 g/t gold with 15.4% zinc and 4.5% lead (2,605 g/t Ag/Eq) over 0.5m. The company plans to conduct deep drilling from Vizsla Silver’s ground to explore these concepts further.
Silver Dollar Resources Inc., acquired from Canasil a 100% interest in the Nora project in Durango, and provided a project update. In connection with the acquisition of the Nora property, Silver Dollar encountered certain unresolved discrepancies in verifying the 2020 and 2021 drill results Canasil reported on the Nora property. For gold: of the 157 samples duplicated, Canasil reported 42 samples >1 g/t Au (1.23 – 43.7 g/t) including 18 samples >5 g/t (5.3 – 43.7 g/t), whereas Silver Dollar’s re-assaying yielded only three samples >1 g/t Au (1.04, 1.75, and 2.30 g/t). For silver: of the 157 samples duplicated, Canasil reported 44 samples >200 g/t Ag (133 -1,924 g/t) including 19 samples >500 g/t Ag (504 – 1,925 g/t), whereas Silver Dollar’s re-assaying yielded only three samples >100 g/t Ag (129, 158, and 448 g/t). “The QPs from both companies discussed the situation and recommended a further analytical program be carried out to provide some insight into what may have caused the assay discrepancies. However, Canasil did not have the financial resources to contribute to the recommended program and alternatively offered to waive certain of Silver Dollar’s consideration obligations under the Nora Option Agreement and transfer 100% ownership of the Nora property to Silver Dollar for the consideration that has been provided to date (as detailed below), subject to a 2% net smelter returns royalty with Silver Dollar having the right to buy back 1% of the Royalty for $1M. As of the date hereof, Silver Dollar has incurred a total of approximately $134,779 in exploration expenditures on the Nora property, as full consideration for the acquisition thereof. Silver Dollar is not required to provide any further consideration to Canasil to complete the acquisition and the transfer of the Nora concessions to Silver Dollar has been initiated”.

ON MINING

Argonaut Gold Inc., announced that it will report Q4 and year-end 2023 production and financial results of their Mexican operations on March 6, 2024.
GoGold Resources Inc., released Q1, 2024 production and financial results from its Parral Tailings project, Chihuahua. The company produced 109K Oz Ag, 1,848 Oz Au, and 212.8K Lb Cu (300,260 Oz AgEq). It also reported a revenue of USD $6.8M on the sale of 305,087 Oz AgEq, at a realized price of USD $22.28 per Oz Ag, and an adjusted cash cost and all in sustaining cost of USD $16.83 and USD $24.64 per Oz AgEq respectively ; a net income of USD $192K; and a cash of USD $88.8M.

ON FINANCING

Capstone Copper Corp., and Orion Fund JV Limited, Orion Mine Finance Fund II LP and Orion Mine Finance (Master) Fund I-A LP (collectively, Orion) closed its previously announced bought deal offering of common shares of Capstone by a syndicate of underwriters, which consisted of a total of 68,448,000 common shares at a price of CAD $6.30 per common share, which included the exercise in full of the Underwriters’ over-allotment option of 8,928,000 common shares from the company, for aggregate gross proceeds under the offering of CAD $431,222,400 (Cozamine mine, Zacatecas).
Defiance Silver Corp., announced a non-brokered private placement for gross proceeds of up to CAD $3M. The offering is priced at $0.10/unit. Each unit shall consist of one common share of the company and one half of one common share purchase warrant. Net proceeds will be used for exploration of the company’s projects and for general working capital purposes (San Acacio project, Zacatecas).
Kootenay Silver Inc., increased the size of its previously announced non-brokered private placement to $3.5M, at a price of $0.75 per unit. The net proceeds from the offering will be used for exploration activities, property commitments on the company’s projects, working capital and general corporate purposes (Columba project, Chihuahua).
Sonoro Gold Corp., announced a non-brokered private placement offering consisting of up to 22,222,222 units at a price of CAD $0.45 per unit for gross proceeds of up to CAD $1M. Net proceeds will be used to fund the ongoing development of the company’s Cerro Caliche gold project in Sonora, Mexico as well as working capital.
Regency Silver Corp., extended the closing its previously announced private placement dated January 17, 2024 (Dios Padre project, Sonora).
Zacatecas Silver Corp., upsized and closed its previously announced private placement from $1.8M to $2.5M. The Company will now proceed to immediately close the financing, by way of receiving subscription agreements and funds and intends to close within the next week. The Company intends to use the net proceeds to satisfy ongoing costs associated with its properties as well as general working capital purposes (Zacatecas Silver project, Zacatecas).

ON RESOURCES AND DEVELOPMENT

Luca Mining Corp., provided an update progress at its Tahuehueto property in Durango. The project to increase throughput at the Tahuehueto mill to 1,000 tonnes per day is in the final commissioning stage. The testing of the second ball mill is well advanced and will provide a total installed grinding capacity of 1,250 tonnes per day. Once the second mill is commissioned, production will ramp up and progressively increase to 35,000-40,000 oz AuEq per year.
Avino Silver & Gold Mines Ltd., presented the results of the Pre Feasibility (PFS) for its Oxide Tailings project at its Avino mine operation in Durango. Highlights include a NVP of USD $98M (pre-tax) and USD $61M (after-tax) at a 5% discount rate; an IRR of 35% (pre-tax) and 26% (after-tax); a payback period of 2.9 years (pre-tax) and 3.5 years (after-tax); an initial capital cost of USD $49.1M, including a contingency provision in the amount of USD $5.3M; the ongoing sustaining capital cost is USD $5.1M; On-site Operating Costs (OOC) and All-In Sustaining Cost (AISC) of USD $9.71 and USD $10.23 per Oz AgEq respectively; proven and probable mineral reserves of 6.70M tonnes at a silver and gold grade of 55 g/t and 0.47 g/t respectively; metal recoveries: 77.2% Ag and 74.9% Au; Doré production: Total 9,073,000 Oz Ag and 76,000 Oz Au, life-of-project (averaging 1,008,000 Oz Ag and 8,445 Oz Au per year); and the project will generate USD $52.4M in tax contributions to the local economy and government.
Sierra Madre Gold and Silver Ltd., provided an update on La Guitarra mine in the State of Mexico. The company has retained TechSer Mining Consultants Ltd., to complete the Mine Restart Study (MRS), which include an estimation of underground mine material for the Guitarra, Coloso and Nazareno mines and the Los Angeles bulk tonnage deposit. The MRS is expected to be completed in Q2 of this year. On the other hand, work has been ongoing to determine necessary steps for the potential re-start of production. In accordance with recommendations made by officials with the Secretaria de la Defensa Nacional, SEDENA, improvements to the underground powder magazines have been completed. Finally, all circuits in the processing plant are undergoing maintenance and rehabilitation work which would be required for the resumption of operations. In the grinding circuit, the three ball mills are being relined, all parts of the central drive shaft mechanisms overhauled, and the motors cleaned and tested. A fourth ball mill with limited capacity will not be rebuilt at this time.
Heliostar Metals Ltd., announced that it is evaluating test mining scenarios for its Ana Paula project, Guerrero in 2024. The company is exploring the potential to complete the existing underground decline at the Ana Paula deposit in Guerrero, to enable test mining of a bulk gold sample. This would help de-risk the underground plan for Ana Paula while creating a potential pathway to production from test mining in 12 months. The company has initiated a Preliminary Economic Assessment (PEA) for completion in H2, 2024, and will continue resource growth drilling. Heliostar is assessing non-equity funding options for this program and has held discussions with potential offtake partners. Multiple scenarios indicate the potential to recover more than 20K Oz Au from a bulk sample from stocks averaging 7-10 g/t Au.
Orla Mining Ltd., concluded its 2023 Camino Rojo Sulphides Infill program in Zacatecas with strong results. Drilling highlights of the remaining unreported 14 holes completed as part of the 52 drill holes, 35,070 m infill program are shown in the table below:

“A preliminary underground resource estimate on the Camino Rojo Sulphides is eagerly anticipated to be completed in the second half of 2024. Metallurgy evaluation on the recent phase of Camino Rojo sulphide infill drilling is expected to continue throughout 2024”.

Prime Mining Corp., released results from the 2023 drilling program at the Z-T Area within its Los Reyes project, Sinaloa. Highlights of the drilling are shown in the table below:

“Ongoing drilling at Z-T aims to extend the high-grade shoots that remain open at depth, as well as following up on the newly discovered mineralization along strike”.

First Majestic Silver Corp., reported positive exploration results from their San Dimas property in Durango, and Santa Elena property in Sonora. At San Dimas, Durango, exploration drilling intersected significant gold and silver mineralization in multiple veins at Sinaloa North-Elia, Santa Teresa, Rosario and Perez Areas. Drilling highlights (true widths reported) include holes ST23-014 with 7.03 g/t Au and 903 g/t Ag (1,466 g/t AgEq) over 0.78m, plus 3.95 g/t Au and 270 g/t Ag (586 g/t AgEq) over 1.86m, plus 2.07 g/t Au and 130 g/t Ag (296 g/t AgEq) over 2.90m, plus 40.40 g/t Au and 2,092 g/t Ag (5,324 g/t AgEq) over 0.91m; hole SIN23-073 with 13.50 g/t Au and 1,007 g/t Ag (2,087 g/t AgEq) over 0.7m, plus 11.83 g/t Au and 758 g/t Ag (1,681 g/t AgEq) over 2.97m: hole PE23-225 with 1.6 g/t Au and 243 g/t Ag (371 g/t AgEq) over 0.77m, plus 14.18 g/t Au and 2,439 g/t Ag (3,574 g/t AgEq) over 1.03m, plus 3.78 g/t Au and 4.21 g/t Ag (723 g/t AgEq) over 7.78m, plus 9.16 g/t Au and 242 g/t Ag (974 g/t AgEq) over 0.84m, plus 1.33 g/t Au and 293 g/t Ag (293 g/t AgEq) over 0.96m; and hole PE23-242 with 7.36 g/t Au and 1,238 g/t Ag (1,826 g/t AgEq) over 2.41m. At Santa Elena, Sonora, the drilling program designed to convert Mineral Resources to Mineral Reserves at the Ermitaño mine, cut multiple high-grade intersections of gold and silver mineralization. Drilling highlights (true widths reported) include holes EWUG-23-012 with 7.02 g/t Au and 189 g/t Ag (750 g/t AgEq) over 10.05m, plus 20.95 g/t Au and 311 g/t Ag (1,987 g/t AgEq) over 4.88m, plus 7.99 g/t Au and 187 g/t Ag (826 g/t AgEq) over 2.38m; hole EWUG-23-007 with 4.51 g/t Au and 155 g/t Ag (516 g/t AgEq) over 8.18m, plus 4.33 g/t Au and 88 g/t Ag (434 g/t AgEq) over 3.93m, plus 18.50 g/t Au and 304 g/t Ag (1,784 g/t AgEq) over 1.71m, plus 7.44 g/t Au and 107 g/t Ag (702 g/t AgEq) over 1.32m; and hole EWUG-23-15 with 9.38 g/t Au and 230 g/t Ag (980 g/t AgEq) over 5.23m, plus 3.43 g/t Au and 192 g/t Ag (466 g/t AgEq) over 1.63m.
Torex Gold Resources Inc., provided a Q4, 2023 update on its Media Luna project in Guerrero. In Q4 2023, Torex Gold’s Media Luna Project made significant progress towards completion. During Q4 2023, USD $124M was invested in the project, the highest quarterly spend to date. Total spend in 2023 was USD $366.3M, in line with revised annual project guidance of USD $360 to USD $390M. USD $350 to USD $400M has been guided for project capital expenditures in 2024, with quarterly expenditures through Q3 2024 expected to be similar to the level experienced in Q4 2023, before declining as the project nears completion. The project was 60% complete, with detailed engineering at 84% and procurement at 63%. Underground development and construction advanced, with the Guajes Tunnel breakthrough achieved ahead of schedule. Operational readiness activities continued, and the project remained on track for first concentrate production in late 2024 and commercial production in early 2025. Funding has exceeded remaining capital expenditures, and the project execution plan remains unchanged, with only minor adjustments to interim activities.

ON DEALS AND CORPORATE ISSUES

Capstone Copper Corp., announced that it has commenced trading on the Australian Securities Exchange (ASX) (Cozamin mine, Zacatecas). Capstone was admitted to the official list of ASX on January 31, 2024, and will trade under the ticker symbol “CSC” (ASX: CSC).
Colibri Resource Corporation appointed Douglas Coleman to its Advisory Board (Evelyn project, Sonora).
Fabled Silver Gold Corp., terminated its letter of intent with Kootenay Silver Inc., with respect to the proposed acquisition the Mecatona Property, Chihuahua.
Luca Mining Corp., appointed a new member to its Board of Directors (Tahuehueto project, Durango).
Defiance Silver Corp., clarified technical disclosures pertaining to its technical reports entitled “NI 43-101 Technical Report Preliminary Economic Assessment on the Tepal Project, Michoacan” dated February 24, 2017 with an effective date of January 17, 2017, and its technical report entitled “Technical Report and Resource Estimate, San Acacio Silver Deposit, Zacatecas, Mexico” dated September 26, 2014, with an effective date of April 1, 2014. The company understands it will need to amend the technical reports accordingly.

ON SOCIAL RESPONSIBILITY

Fortuna Silver Mines Inc., announced its objectives, metrics, and targets to reduce Scope 1 and Scope 2 greenhouse gas (GHG) emissions by 15% in 2023 compared to the forecasted emissions in 2030 without intervention measures. The company is committed to supporting the global ambition of net-zero GHG emissions by 2050. To achieve the 2030 GHG emissions reduction target, Fortuna plans to implement projects such as providing renewable energy to its operations, providing low-carbon electricity, and constructing and modernizing mine paste fill plants. Fortuna is committed to monitoring the GHG emissions of each of its mines on a monthly basis, reviewing progress against GHG emissions reduction target and its pathway, and assessing potential climate-related risks and opportunities.

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, silica sinter in a low-sulphidation epithermal vein system in a project in Durango. Photo by Miguel A Heredia

Prime Mining Announces CEO Succession

January 16, 2024 / gambusinoprospectormexico / Leave a comment

2024-01-16_prime-announces-CEO-succession Download

The Mining and Exploration News in Mexico: Highlights on the Fourth Week of December, 2023

December 31, 2023 / gambusinoprospectormexico / Leave a comment

REDOX Front in a Redbed-Copper project

By Miguel A Heredia

During the 52^thweek of the year (December 25^thto December 31^st, 2023), at least 6 press releases were announced by companies working in Mexico, with four disclosing deals and corporate issues, and two announcing financing issues. It has been the week with the fewest news published since we started to post this weekly summary of Mining and Exploration in Mexico. ON MEXICO ISSUES, no relevant news. ON EXPLORATION, no relevant news. ON MINING, no relevant news. ON FINANCING Regency Silver announced warrant repricing and extension (Dios Padre project, Sonora). Silver Viper closed the first tranche of its $2M previously announced private placement (La Virginia project, Sonora). ON RESOURCES AND DEVELOPMENT, no relevant news. ON DEALS AND CORPORATE ISSUES, Ranchero Gold, through its wholly-owned subsidiary Minera y Metalurgia Paika, S.A. de C.V., entered into a letter of intent with Minas de Oro Nacional, S.A. de C.V., a wholly-owned subsidiary of Alamos Gold Inc., for the 24% of the surface area of its Santa Daniela property in Sonora, for a total consideration of up to USD $5.05M. Aztec Minerals announced the appointments of its CFO and of its Controller (Cervantes project, Sonora). Osisko Development reported management changes (San Antonio project, Sonora). Starcore announced the resignation of its current President and Director (San Martin Mine, Queretaro). ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUE

No relevant news.

ON EXPLORATION

No relevant news.

ON MINING

No relevant news.

ON FINANCING

Regency Silver Corp., announced warrant repricing and extended the expiry date of an aggregate of 1.5M outstanding share purchase warrants expiring on April 26, 2024 issued pursuant to a private placement. The warrants will be repriced from $0.35 to $0.20 over 2 years and the expiry date extended to December 22, 2025. All other terms of the warrants remain the same (Dios Padre project, Sonora).
Silver Viper Minerals Corp., closed the first tranche of its $2M previously announced private placement by issuing 5,324,000 units of the company at a price of $0.10 per unit for aggregate gross proceeds of $532,400. Gross proceeds will be used for the company to make its final $200K option payment on its La Virginia project, Sonora, and for working capital and other general corporate purposes.

ON RESOURCES AND DEVELOPMENT

No relevant news.

ON DEALS AND CORPORATE ISSUES

Ranchero Gold Corp., through its wholly-owned subsidiary Minera y Metalurgia Paika, S.A. de C.V. (Paika), entered into a letter of intent (LOI) with Minas de Oro Nacional, S.A. de C.V., a wholly-owned subsidiary of Alamos Gold Inc., for the 24% of the surface area of its Santa Daniela property in Sonora, which comprises an area of 5,390 hectares, in consideration for the cash payment of USD $2.55M and a conditional payment of USD $2.5M for the disposition. “An initial tranche of the Cash Payment in the amount of USD $658K was paid to Paika concurrently with the execution of the LOI to pay for outstanding fees and taxes on the Licenses. In the event that the Disposition is not completed, Paika will be required to repay this amount to Minas de Oro. The remaining USD $1,892,000 of the Cash Payment will be paid once the Licenses have been transferred to Minas de Oro. In the event that Minas de Oro declares a Mineral Reserve of, or mines, greater than 500K ounces of gold within the Licenses, Minas de Oro will pay Paika an additional USD $2.5M”.
Aztec Minerals Corp., announced the appointments of its CFO and of its Controller (Cervantes project, Sonora).
Osisko Development Corp., reported management changes and announced the retirement of its COO at the end of 2023, as well as of its Vice President, Sustainable Development. Meanwhile, a current Director on the Board of Directors on the company and chair of the Environmental, Health and Safety and Technical committee, will assume the role of interim COO while (San Antonio project, Sonora).
Starcore International Mines Ltd., announced the resignation of its current President and Director. The current CEO will assume the Presidency (San Martin Mine, Queretaro).

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 Redox front in a Redbed-Copper project in Tamaulipas, Mexico. Photo by Miguel A Heredia.

The Mining and Exploration News in Mexico: Highlights on the Fifth Week of November, 2023

December 3, 2023 / gambusinoprospectormexico / Leave a comment

Banded quartz veins and breccias

By Miguel A Heredia

During the 48^thweek of the year (November 27^thto December 03^rd, 2023), at least 29 press releases were announced by companies working in Mexico, and 1 news published by the media, with ten disclosing deals and corporate issues, eight reporting resources and developments, seven announcing financing issues, three communicating production results, and two commenting on Mexican issues. ON MEXICO ISSUES, President of the College of Mining Engineers, Metallurgists and Geologists of Mexico (CIMMGM), assured that, although there are promising geological signs in Chihuahua, Coahuila, Zacatecas, Oaxaca, Guerrero and Guanajuato, the Mining Law limits exploration of ‘rare earths’ in Mexico. Torex Gold, Endeavour Silver, and Vizsla reported the best drilling intercepts in Mexico on the fifth week of November, 2023. ON EXPLORATION, No relevant news. ON MINING, Orogen reported royalty revenue for Q3, 2023. Santacruz announced Q3, 2023 production results from its Zimapan mine in Hidalgo. Minera Alamos reported Q3, 2023 production and financial results from its Santana mine in Sonora. ON FINANCING Sailfish elected to settle and aggregate of USD $205K in interest accrued up to November 24, 2023 through the issuance of an aggregate of 219,397 common shares (Gavilanes project, Durango). Orex announced a non-brokered private placement for gross proceeds of up to $1M (Valenciana project, Zacatecas). Aura declared dividend of USD $0.25 per common share (Aranzazu mine, Zacatecas). Silver Viper announced a non-brokered private placement for gross proceeds of up to $5M (La Virginia project, Sonora). Tocvan closed the first tranche of its previously announced non-brokered private placement for gross proceeds of $369K (Pilar project, Sonora). Oroco closed a non-brokered private placement for gross proceeds of $2,691,940 (Santo Tomas project, Sinaloa). ON RESOURCES AND DEVELOPMENT, Vizsla released new drill results from 22 expansion and infill holes collared at its flagship Panuco project, Sinaloa. Endeavour presented results from its exploration drilling program at its Bolañitos mine, Guanajuato. Guanajuato Silver initiated processing of mineralized material from El Horcon mine, Guanajuato. Heliostar announced updated Mineral Resource Estimate for its Ana Paula project, Guerrero. Tocvan poured the first doré bar of gold and silver from bulk sample material processed at its Pilar project, Sonora. Torex released results from the 2023 exploration drilling program at its Media Luna West project in Guerrero. Mammoth announced results of an independent drill hole spacing analysis with recommendations to identify initial Mineral Resource Estimate at its Tenoriba project, Chihuahua. Oroco filed an independently prepared Preliminary Economic Assessment (PEA) for its Santo Tomas project in Sinaloa. ON DEALS AND CORPORATE ISSUES, Bear Creek entered into an agreement to amend the convertible promissory note in the amount of USD $26,632,458 issued to Equinox on October 19, 2023 (Mercedes mine, Sonora). Endeavour announced that it hosted an investor day at its Terronera project in Jalisco last November 19-21. Argonaut announced that it attended the Scotiabank Mining Conference in Toronto (El Castillo mine, Durango). Discovery announced the appointment of its new COO (Cordero project, Chih). Guanajuato Silver announced management changes (La Valenciana mine, Guanajuato). Bear Creek granted a total of 900K stock options to two recently appointed Directors and new Chief Operating Officer (Mercedes mine, Sonora). Mithril announced termination of scheme implementation deed under which Newrange would acquire 100% of the issued share capital of Mithril (Copalquin project, Durango). Pan American Silver acquired 5,083,780 common shares of New Pacific Metals Corp., for total investment value of approximately CAD $13.5M (La Colorada mine, Zacatecas). Prime Mining announced that it will be trading on the Toronto Stock Exchange on December 5, 2023 following its graduation from the TSX Venture Exchange (Los Reyes project, Sinaloa). Silver Storm announced that it will present live at the Clean Energy and Precious Metals Virtual Investor Conference on December 5, 2023 (La Parrilla mine, Durango). ON SOCIAL RESPONSIBILITY, No relevant news.

ON MEXICO ISSUE

President of the College of Mining Engineers, Metallurgists and Geologists of Mexico (CIMMGM), assured that, although there are promising geological signs in Chihuahua, Coahuila, Zacatecas, Oaxaca, Guerrero and Guanajuato, the Mining Law limits exploration of ‘rare earths’ in Mexico. The lack of formal exploration work imposed by the new legislation leaves Mexico at risk of becoming dependent on China, which controls 90 percent of global rare earth production. This is because the only one that can carry out exploration in Mexico is the Mexican Geological Service (SGM), which has reduced the interest of private parties to search for these minerals. For next year, the Secretariat of Finance and Public Credit (SHCP) granted the SGM a budget of MXP $1,320M, just MXP $127M more in relation to the MXP $1,193M that were granted for 2023, a budget that, they assure, will be insufficient. SGM explained that, if they do not have more budget, it will be difficult for them to meet the new mandates assigned to them by the Ministry of Economy, so, until now, they said, the most viable thing will be to work hand in hand with private sector.
Torex Gold Resources Inc., Endeavour Silver Corp., and Vizsla Silver Corp., reported their best drilling intercepts in Mexico on the third week of November, 2023. Details are shown in the table below:

ON EXPLORATION

No relevant news.

ON MINING

Orogen Royalties Inc., reported royalty revenue for Q3, 2023. Production from Ermitaño mine, Sonora is operated by First Majestic Silver Corp., and Orogen holds a 2% net smelter return royalty. Ermitaño processed 226,292 tonnes containing average grades of 4.09 g/t Au and 75 g/t Ag to produce 28,367 Oz Au and 347,941 Oz Ag. The company recorded $1,628,409 in royalty revenue consisting of 614 gold equivalent ounces (GEOs), up 29% compared to the same period in 2022.
Santacruz Silver Mining Ltd., announced Q3, 2023 production results from its Zimapan mine in Hidalgo. The company processed 192,158 tonnes of 80 g/t Ag, 1% Pb, 2.5% Zn, and 0.29% Cu to produce 378.7K Oz Ag, 3.42M Lb Pb, 8.36M Lb Zn, and 564.5K Lb Cu (1.2M Oz AgEq).
Minera Alamos Inc., reported Q3, 2023 production and financial results from its Santana mine in Sonora. The company announced that the total Oz Au recovered since the start of operations through until September 30, 2023 at Santana was 14,270 Oz Au with a recoverable gold inventory on the leach pad increasing to 6,337 ounces as at September 30, 2023. It also released financial results (all numbers in Canadian dollars) and reported revenue from the sale of 6,337 Oz Au of $1,790,245; good sold and depletion of $2,063,559 for gross loss from mining operations of $273,313; a net loss of $4,973,485; working capital as of September 30, 2023 of $19,668,154; and cash and cash equivalents of $6,573,453.

ON FINANCING

Sailfish Royalty Corp., elected to settle and aggregate of USD $205K in interest accrued up to November 24, 2023 through the issuance of an aggregate of 219,397 common shares in the capital of the company at a deemed price of CDN $1.28 per share to the holders of convertible debentures dated May 24, 2023. Each debenture accrues interest at a rate of 10% per annum payable semi-annually in arrears (Gavilanes project, Durango).
Orex Minerals Inc., announced a non-brokered private placement for gross proceeds of up to $1M from the sale of 6,666,667 units at a price of $0.15 per unit. Gross proceeds will be used for exploring its new Valenciana project in Zacatecas and for general working capital purposes.
Aura Minerals Inc., declared dividend of USD $0.25 per common share (Approximately USD $18M) based on the actual results from Q3, 2023 and the expected results for Q4, 2023, including expected production, cash costs and sustaining and exploration capex for Q4, 2023. The dividend will be paid to shareholders on December 19, 2023 (Aranzazu mine, Zacatecas).
Silver Viper Minerals Corp., announced a non-brokered private placement for gross proceeds of up to $5M from the sale of 45,454,546 units at a price of $0.11per unit. Silver Viper filed an amendment and restarted the offering document, suggesting prospective investors to read the offering document before making an investor decision. “The company intends to use the minimum net proceeds of $2M from the offering for working capital requirements and other general corporate purposes which includes legal and financing fees as part of this offering, and the final USD $200K option payment on its La Virginia Project due in 2024. Any additional net proceeds from the offering will be used to continue surface exploration including mapping and sampling as well as a drill campaign at the La Virginia Project in Sonora”.
Tocvan Ventures Corp., closed the first tranche of its previously announced non-brokered private placement for gross proceeds of $369K from the sale of 820K units at a price of $0.45 per unit. Gross proceeds will be used to advance the Pilar project in Sonora.
Oroco Resource Corp., closed a non-brokered private placement for gross proceeds of $2,691,940 through the sale of 6,729,850 units at a price of $0.40 per unit. Gross proceeds will be used for working capital and corporate overhead and exploration and development activities (Santo Tomas project, Sinaloa).

ON RESOURCES AND DEVELOPMENT

Vizsla Silver Corp., released new drill results from 22 expansion and infill holes collared on the Copala resource area at its flagship Panuco project, Sinaloa. Drilling highlights (true widths reported) include holes CS-23-304 with 249 g/t Ag and 1.23 g/t Au (313 g/t AgEq) over 1.0m; and hole CS-23-300 with 247 g/t Ag and 2.28 g/t Au (385 g/t AgEq) over 1.73m, plus 519 g/t Ag and 3.57 g/t Au (724 g/t AgEq) over 3.10m, including 1,255 g/t Ag and 8.61 g/t Au (1,749 g/t AgEq) over 1m, plus 190 g/t Ag and 0.69 g/t Au (221 g/t AgEq) over 1.25m. “The reported results have successfully expanded Copala mineralization by ~100m to the southeast and identified new vein splays situated in-between Copala and the high-grade Cristiano structure”.
Endeavour Silver Corp., presented results from its exploration drilling program conducted on El Puertecito and Fortuna Veins at its Bolañitos mine, Guanajuato. Focus of this program is to increase resources, replace reserves, and extend mine life. Drilling highlights (true width reported) at Fortuna Vein include includes hole GOL-42 with 4.01 g/t Au and 135 g/t Ag (456 g/t AgEq) over 1.18m, including 8.04 g/t Au and 280 g/t Ag (923 g/t AgEq) over 0.56m. Drilling highlights (true widths reported) at El Puertecito Vein include holes GOL-11 with 8.78 g/t Au and 86 g/t Ag (788 g/t AgEq) over 2.09m, including 25.70 g/t Au and 59 g/t Ag (2,115 g/t AgEq) over 0.57m; and hole GOL-09 with 4.44 g/t Au and 94 g/t Ag (449 g/t AgEq) over 2.07m, including 11.35 g/t Au and 258 g/t Ag (1,166 g/t AgEq) over 0.56m.
Guanajuato Silver Company Ltd., initiated processing of mineralized material from an existing stock pile at its El Horcon mine, Guanajuato. The company has shipped and processed 350 tonnes of material from the historical stockpile. Head grades from different batches of this material were approximately 30-50 g/t Ag and 1.6 to 3.0 g/t Au, with initial processing runs given recoveries of approximately 70% for Ag and 82% for Au. “The Horcon stockpile is expected to add approximately 4,000 tonnes of mineralized material per month over a six-to-ten-month period. Metallurgical testing of the mineralized material at Horcon has been demonstrated compatible with the Cata mill processing circuit and is currently being blended with mineralized production from the Valenciana Mines Complex”.
Heliostar Metals Ltd., announced updated Mineral Resource Estimate for its Ana Paula project, Guerrero. Highlights of the Mineral Resource Estimate include a total measured and indicated mineral resources of 710,920 Oz Au grading 6.6 g/t Au; a total of inferred mineral resource of 447,512 Oz Au grading 4.21 g/t Au; a mineral resource estimation cutoff grade of 2.5 g/t Au increased from previous estimate; a connected zone of greater than 2ooK Oz Au grading greater than 10 g/t Au within the measured resource in the High Grade Panel that can be targeted in the initial years of mining; a 58% increase in measured and 30% increase in indicated gold grade relative to the previous resource estimate at same 2.5 g/t cutoff grades. On the other hand, a tighter spaced drilling has led to resource grade growth which is a positive indication for additional grade increases during conversation of the inferred resources to higher classifications; has increased in inferred ounces due to stricter estimation with a view to underground mining; the High Grade Panel at core of the resource is now 280m long, 100m high, and 60m thick; and this new resource has been delivered at an all-in discovery cost of USD $16 per new Oz Au, inclusive of all exploration and project costs.
Tocvan Ventures Corp., poured the first doré bar of gold and silver from bulk sample material processed at its Pilar project, Sonora. The bar weighs 1.487 kilograms in total, with assays from local certified laboratory LTM returning 18% of gold and 69% of silver.
Torex Gold Resources Inc., released results from the 2023 exploration drilling program at its Media Luna West project in Guerrero, which consisted of 7 holes totalling 9.722m. Drilling highlights include holes ML23-965 with 1.63 g/t Au, 13 g/t Ag, and 0.48% Cu (2.55 g/t AuEq) over 6.85m, plus 4.42 g/t Au, 1 g/t Ag, and 0.04% Cu (4.50 g/t AuEq) over 2.96m; hole ML23-970A with 2.81 g/t Au, 27 g/t Ag, and 0.31% Cu (3.62 g/t AuEq) over 5m; and hole ML23-986A with 27.50 g/t Au, 28 g/t Ag, and 1.2% Cu (29.76 g/t AuEq) over 14.1m. “The current distribution of the multiple intercepts confirms a north-south extension of more than 600 m with a width similar to the EPO deposit, which suggests Media Luna West could have a similar mineralized potential to that of EPO. The exploration potential of this structural corridor is open to the north and is likely favored by intersecting with the swarm of east-west dykes that define the best mineralization trap within both the nearby Media Luna and EPO deposits”.
Mammoth Resources Corp., announced results of an independent drill hole spacing analysis with recommendations to identify initial Mineral Resource Estimate (MRE) at its Tenoriba project, Chihuahua. The independent analysis recommended drill hole spacing for the El Moreno, Masuparia, and Los Carneritos targets of 80m, 40m, and 80m respectively, for an Inferred MRE.
Oroco Resource Corp., filed an independently prepared Preliminary Economic Assessment (PEA) for its Santo Tomas project in Sinaloa. The report dated October 11, 2023 and titled “Santo Tomas Copper Project NI 43-101 Technical Report and Preliminary Economic Assessment”, has been prepared in accordance with National Instrument 43-101 – Standards of Disclosure of Mineral Projects. Results of the PEA were previously announced in the Company’s news release dated October 17, 2023. There are no differences in the Report from those results previously reported.

ON DEALS AND CORPORATE ISSUES

Bear Creek Mining Corporation entered into an agreement to amend the convertible promissory note in the amount of USD $26,632,458 issued to Equinox Gold Corp., on October 19, 2023 (Mercedes mine, Sonora).
Endeavour Silver Corp., announced that it hosted an investor day at its Terronera project in Jalisco last November 19-21, to showcase the project and construction progress to date.
Argonaut Gold Inc., announced that it attended the Scotiabank Mining Conference held in Toronto last November 28^th and 29^th (El Castillo mine, Durango).
Discovery Silver Corp., announced the appointment of its new COO (Cordero project, Chih).
Guanajuato Silver Company Ltd., announced management changes, announcing the appointment of its new COO. The company also signed an agreement with the court appointed insolvency trustee of the Great Panther Estate to terminate all obligations of the company to make contingency payments totalling USD $2M in exchange for the offset of a working capital adjustment receivable owed to the company by Great Panther (La Valenciana mine, Guanajuato).
Bear Creek Mining Corporation granted a total of 900K stock options to two recently appointed Directors and new Chief Operating Officer (Mercedes mine, Sonora).
Mithril Resources Limited announced termination of scheme implementation deed under which Newrange would acquire 100% of the issued share capital of Mithril and pursuant to which the existing options to acquire shares in Mithril would be cancelled (Copalquin project, Durango).
Pan American Silver Corp., acquired 5,083,780 common shares of New Pacific Metals Corp., for total investment value of approximately CAD $13.5M. “Upon completion of the oﬀering, which occurred on September 29, 2023, Pan American owns, directly and indirectly, 19,807,848 common shares representing approximately 11.6% of the outstanding common shares. Immediately prior to the acquisition, Pan American held 14,724,068 common shares, representing approximately 9.34% of the issued and outstanding common shares” (La Colorada mine, Zacatecas).
Prime Mining Corp., announced that it will be trading on the Toronto Stock Exchange on December 5, 2023 following its graduation from the TSX Venture Exchange. The trading symbol for the common shares of Prime on the TSX will remain unchanged as “PRYM” (Los Reyes project, Sinaloa).
Silver Storm Mining Ltd., announced that it will present live at the Clean Energy and Precious Metals Virtual Investor Conference on December 5, 2023 (La Parrilla mine, Durango).

ON SOCIAL RESPONSIBILITY

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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, brecciated banded quartz vein in an epithermal vein system in a project in Zacatecas, Mexico. Photo by Miguel A Heredia.

OSISKO BOARD UPDATE

November 21, 2023 / gambusinoprospectormexico / Leave a comment

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Chesapeake Gold Announces Appointment ofInterim Chief Executive Officer

October 27, 2023 / gambusinoprospectormexico / Leave a comment

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