Highlights on the Third Week of September, 2018. Mining and Exploration News in Mexico

IMG_0970 - copia

On the image above, weakly silicified ridge on strongly argillitized volcanic rocks and minor quartz veining in clay pit in Hidalgo (Man-made produced differential erosion). Picture by Jorge Cirett.

By Jorge Cirett

During the 38th week of the year (September 17th to September 23rd, 2018), at least 24 press releases were announced by companies working in Mexico. Prize Mining, Kootenay, Silver Viper and Radius released advances in exploration. Excellon and Consolidated Zinc released news on mining. Prospero, Oceanus, Sable, Avino and Advance Gold reported news on financing. Capstone, Goldplay, Gold Resource, Excellon, Southern Silver, Endeavour and SilverCrest reported on development of its properties. Defiance Silver, and Valoro are to merge, Arian Silver is to change name whereas Kootenay and Radius reported deals on properties. ON MEXICO ISSUES, Goldcorp opened a health clinic in Zacatecas. ON EXPLORATION, in Sonora, Silver Viper started drilling on the Rubi-Esperanza claims of La Virginia project. In Chihuahua, Radius Gold is to drill the Amalia property. In Coahuila, Prize Mining initiated drilling at Manto Negro. ON MINING Excellon commented on production issues at Platosa, while Consolidated Zinc completed the first ore shipment from its Plomosas mine. ON FINANCING, Prospero Silver completed the private placement financing for CAD$356 K with Fortuna Silver. Oceanus raised $750 K. Sable entered a bought deal private placement for $2M. Avino Silver announced the pricing of US$4 M of an underwritten public offering. Advance Gold filed documents closing a financing for $255.3 K. ON RESOURCES AND DEVELOPMENT, Capstone, Goldplay, Gold Resource, Excellon, Southern Silver and Endeavour released drilling results aimed to better define or increase the resource base on their properties. SilverCrest presented an updated mineral resource estimate on its Las Chispas project. ON DEALS AND CORPORATE ISSUES, Defiance Silver and Valoro Resources signed a LOI on a merger. Kootenay optioned the Copalito property in Sinaloa. Arian Silver is to change name to Alien Metals. Pan American optioned the Amalia property in Chihuahua.

ON MEXICO ISSUES

  • GoldCorp opened a rural clinic in Mazapil, Zacatecas. With the investment of $40 M pesos GoldCorp executives opened the Unidad Médica Regional (Regional Medical Unit) in the Cedros community, within the Mazapil municipality of Zacatecas. The unit will be manned by IMSS-Prospera personnel, was presented as the most equipped rural clinic in the country, and is to provide 24 hours medical service to more than 2300 inhabitants.

ON EXPLORATION

  • Prize Mining Corp. initiated a 3,000 m diamond drilling program at its Manto Negro project in Coahuila. The program is focused on the El Granizo and Pilar Grande areas, which are 18 km apart, to test high-grade copper and silver surface oxide deposits.
  • Kootenay Silver Inc. presented encouraging rock-chip results from its recently optioned Copalito property in Sinaloa. Highlighted samples returned: 1.0 m @ 0.23 g/t Au, 104 g/t Ag, 0.13% Pb, 0.67% Zn; 1.5 m @ 0.50 g/t Au, 32 g/t Ag, 0.85% Pb, 0.40% Zn; 1.9 m @ 2.36 g/t Au, 50 g/t Ag, 0.50% Pb, 0.72% Zn; 1.5 m @ 0.45 g/t Au, 122 g/t Ag; 1.5 m @ 0.11 g/t Au, 1,700 g/t Ag, 0.26% Pb, 0.07% Zn; 1.0 m @ 0.40 g/t Au, 1,030 g/t Ag, 0.08% Pb, 0.10% Zn on La Chiva vein, 2.0 m @ 0.02 g/t Au, 474 g/t Ag, 0.26% Pb, 0.87% Zn; 1.10 m @ 0.15 g/t Au, 309 g/t Ag; 0.11% Pb on the Agua vein and 1.0 m @ 1.23 g/t Au, 1,155 g/t Ag; 0.96% Pb, 1.68% Zn; 1.0 m @ 1.82 g/t Au, 396 g/t Ag, 0.70% Pb, 1.17% Zn; 1.9 m @ 0.04 g/t Au, 301 g/t Ag; 0.04% Pb, 0.06% Zn on the 5 Señores vein.
  • Radius Gold Inc. announced the arrival of two drill rigs and commencement of drilling at its Amalia property in Chihuahua. “The drill program is operated by Radius and funded by Pan American Silver, under a joint venture agreement”. The targets to be tested are Campamento, Guadalupe and Dulces. The three comprise a continuum from high level to deeper epithermal mineralization in rough terrain, with stockwork zones, structurally controlled breccias and veins with both bulk mining and high-grade targets.
  • Silver Viper Minerals Corp. announced the completion of a drill camp and the initiation of drilling at the La Virginia project in eastern Sonora. Phase I drilling will be concentrated on the Rubi-Esperanza group of claims, with a combination of confirmation drilling (25%) over known mineralized trends and exploration drilling (75%) on untested targets. “Confirmation holes are planned in and around the historic La Virginia and Con Virginia workings and seek to confirm previously reported widths and grades of the main mineralized trend. These holes are designed to complement existing data, testing gaps in the previous work and testing the main trends for continuity and grade. Exploration holes are planned for nearby prospect areas: La Colonia, La Cascada and El Rubi. Additional prospects may be tested during Phase I as the campaign progresses”.

ON MINING

  • Excellon Resources Inc. anticipates “production in the quarter to be approximately 300,000 AgEq ounces due to operational issues related to surveying and planning personnel and lower byproduct prices. The operational issues have now been addressed and the operation is getting back on track”.
  • Consolidated Zinc Ltd. completed the first shipment of ore from its Plomosas mine in Chihuahua. “The Company plans to deliver 100 tonnes per day to the Santa Eulalia concentrator for the rest of this month for processing. Thereafter the Plomosas mine will scale up operations in order to deliver feed to the concentrator at or above 10,000 tonnes per month within nine months”.

ON FINANCING

  • Prospero Silver Corp. completed its recently announced private placement financing with Fortuna Silver Mines Inc., raising aggregate gross proceeds of CAD$356 K to test Prospero’s Bermudez project in Chihuahua.
  • Oceanus Resources Corp. closed a non-brokered private placement, raising $750K (El Tigre, Sonora).
  • Sable Resources Ltd. entered into an agreement with Haywood Securities Inc. in a bought deal private placement for total gross proceeds of $2 M (Margarita, Chihuahua).
  • Avino Silver & Gold Mines Ltd. announced the pricing of 6.2 M common shares and an equal amount of warrants at US$0.65 per share and associated warrant at US$0.80. The shares amount to US$4 M of underwritten public offering (Avino, Durango).
  • Advance Gold Corp. filed documents on the TSX to close its previously announced private placement financing for gross proceeds of $255.3 K. The financing was effected with two insiders of the company (Tabasqueña, Zacatecas).

ON RESOURCES AND DEVELOPMENT

  • Capstone Mining Corp. disclosed high-grade results from step-out drilling at its Cozamin mine in Zacatecas, which are to be included in a re-estimation of mineral resources later this year. Since the last estimation on March 2018, Capstone has drilled 46 additional holes, with drill intercepts underpinning the decision to elaborate the new resource estimation. Selected true width intercepts comprise 15.4 m @ 3.88% Cu, 0.12% Zn, 0.01% Pb, 63 g/t Ag, 0.02 g/t Au; 8.0 m @ 2.08% Cu, 0.07% Zn, 0.01% Pb, 70 g/t Ag, 0.15 g/t Au; 17.1 m @ 2.19% Cu, 0.07% Zn, 0.01% Pb, 39 g/t Ag, 0.01 g/t Au; 14.8 m @ 5.34% Cu, 0.8% Zn, 0.03% Pb, 112 g/t Ag, 0.05 g/t Au; 9.7 m @ 2.26% Cu, 0.07% Zn, 0.01% Pb, 29 g/t Ag.
  • Goldplay Exploration Ltd. released additional results from sampling historical core drill holes (2010) from its San Marcial project in southern Sinaloa. “The new results expand known mineralization 200 meters down dip beyond the historic NI 43-101 resource area…” and delineate a new discovery subparallel to the main zone. Highlighted true width intervals comprise 4.0 m @ 63 g/t Ag, 1.0% Pb, 1.3% Zn, 0.07 g/t Au; 9.0 m @ 73 g/t Ag, 0.09% Pb, 0.2% Zn, 0.07 g/t Au; 3.0 m @ 139 g/t Ag, 0.03% Pb, 0.15% Zn, 0.04 g/t Au (including 1.0 m @ 501 g/t Ag, 0.09% Pb, 0.4% Zn, 0.08 g/t Au); 2.0 m @ 120 g/t Ag, 0.2% Pb, 0.7% Zn, 0.1 g/t Au; 16.0 m @ 57 g/t Ag, 0.1% Pb, 0.4% Zn, 0.04 g/t Au. The new mineralization style discovered is comprised of pervasive stockwork of millimetric veins hosted by a silicified epiclastic volcanic sequence, with a core length of 47 m showing grades from 0.2 to 1.1 g/t Au.
  • Gold Resource Corp. presented drill highlights from its Alta Gracia 2018 drill program in Oaxaca. The Alta Gracia project hosts the Mirador mine, located 16 km NW from the company’s Aguila project and mineral processing plant. Core length highlighted intervals on the Independencia and Victoria veins comprise 10.30 m @ 0.85 g/t Au, 1,052 g/t Ag; 5.18 m @ 0.55 g/t Au, 241 g/t Ag; 9.59 m @ 0.36 g/t Au, 430 g/t Ag; 2.70 m @ 1.67 g/t Au, 902 g/t Ag. Gold Resource “believes it has discovered a wide, high-grade silver ore shoot within the Independencia vein”, which is located 500 m SW along strike from its Mirador Mine.
  • Excellon Resources Inc. informed on expansion, infill and definition drill results from the 623 Manto and Rodilla manto areas on its Platosa mine in Durango. Highlighted core length intervals comprise 10.5 m @ 0.1 g/t Au, 397 g/t Ag, 2.6% Pb, 4.1% Zn; 4.7 m @ 0.1 g/t Au, 266 g/t Ag, 2.6% Pb, 2.5% Zn; 9.1 m @ 122 g/t Ag, 2.0% Pb, 0.5% Zn; 9.0 m @ 56 g/t Ag, 0.6% Pb, 1.1% Zn; 2.7 m @ 0.4 g/t Au, 783 g/t Ag, 8.2% Pb, 11.1% Zn; 3.5 m@ 489 g/t Ag, 1.5% Pb, 2.3% Zn; 5.5 m @ 2.9 g/t Au, 1,700 g/t Ag, 15.4% Pb, 21.4% Zn; 15.1 m @ 0.4 g/t Au, 1,014 g/t Ag, 10.9% Pb, 26.0% Zn; 6.5 m @ 268 g/t Ag, 4.0% Pb, 4.9% Zn. These results were not included on the previous resource estimate (Sept 7, 2018) and represent the potential for additional mineral resources.
  • Southern Silver Exploration Corp. informed additional metallurgical test work on the Skarn Front deposit from the Cerro Las Minitas Project has resulted in both the successful separation of a potential “saleable grade” copper concentrate as well as the generation of a cleaner zinc concentrate grading above 50% zinc without sacrificing zinc, lead or silver recoveries.The test work on the Skarn Front deposit recovered three concentrates: Cu-Ag; Pb-Ag and Zn-Ag (for recoveries of 67.7% Cu, 82.5% Pb, 89.5% Zn and 90.6% Ag).
  • Endeavour Silver Corp. reported high-grade infill drilling results from its Terronera property in Jalisco. Some highlighted true width intercepts: 3.9 m @ 2.6 g/t Au, 86 g/t Ag; 3.4 m @ 2.1 g/t Au, 136 g/t Ag; 3.3 m @ 0.9 g/t Au, 782 g/t Ag; 5.3 m @ 1.2 g/t Au, 783 g/t Ag; 4.2 m @ 0.7 g/t Au, 524 g/t Ag; 6.1 m @ 0.9 g/t Au, 1,297 g/t Ag; 7.7 m @ 4.8 g/t Au, 169 g/t Ag; 9.8 m @ 2.4 g/t Au, 197 g/t Ag; 3.7 m @ 4.5 g/t Au, 102 g/t Ag; 8.0 m @ 3.0 g/t Au, 85 g/t Ag; 5.6 m @ 7.1 g/t Au, 185 g/t Ag; 4.6 m @ 3.1 g/t Au, 131 g/t Ag; 8.2 m @ 3.4 g/t Au, 49 g/t Ag; 8.7 m @ 6.2 g/t Au, 90 g/t Ag; 1.8 m @ 13.2 g/t Au, 340 g/t Ag.  “Mineralization in the Terronera vein has been intersected over 1400 m long by 500 m deep, and it remains open at depth”.
  • SilverCrest Metals Inc. released an updated mineral resource estimate for its Las Chispas property in Sonora. Inferred Mineral Resources are estimated at 4.3 M tonnes grading 3.68 g/t Au, 347 g/t Ag, or 623 g/t AgEq, containing 551.8 K Oz Au, 48.3 M Oz Ag, or 86.7 M Oz AgEq, using a 150 AgEq cut-off grade and minimum true vein width of 1.5 M. “The combination of the Area 51 zone (Babicanora Vein) and adjacent Babicanora Norte Vein hosts a combined Inferred Resource of 1.6 million tonnes grading 6.97 gpt gold and 568 gpt silver, or 1,091 gpt AgEq containing 56.3 million ounces of AgEq”. Eight of the 30 veins in the district were used for the updated resource estimate. .

ON DEALS AND CORPORATE ISSUES

  • Defiance Silver Corp. and ValOro Resources Inc. entered into a letter of intent (LOI) to complete a friendly merger, on which the combined company will continue under the name of Defiance Silver Corp.. Defiance owns the San Acacio silver project in Zacatecas, whereas ValOro owns the Tepal gold-copper project in Michoacan. ValOro shareholders will receive 0.71 common shares of Defiance for each share of ValOro held.
  • Kootenay Silver Inc. recently optioned the Copalito property in Sinaloa. Kootenay can acquire 100% ownership on the concession by making staged payments over a 4 year period totaling an aggregate of US$985 K. The property consists of seven concessions totaling 3,700 hectares, with a classic low sulfidation epithermal vein system with numerous small old workings and no evidence of historic exploration drilling.
  • Arian Silver Corp. informed on a favorable vote in its annual general meeting to change the name of the company to Alien Metals Ltd. (San Celso, Zacatecas).
  • Radius Gold Inc. granted Pan American Silver Corp. the option to earn up to an initial 65% interest in the Amalia project in Chihuahua, by making staged cash payments to Radius totaling US$1.5M (US$100 K already paid) and expending US$2 M in exploration over four years. Pan American can earn an additional 10% by advancing the property to preliminary feasibility study. Initially Radius will be the project operator.

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

On the image above, weakly silicified ridge on strongly argillitized volcanic rocks and minor quartz veining in clay pit in Hidalgo (Man-made produced differential erosion). Picture by Jorge Cirett.

Highlights on the Second Week of September, 2018. Mining and Exploration News in Mexico

Banded quartz epithermal vein

By Miguel A Heredia

During the 37th week of the year (September 10th to September 16th, 2018), at least 22 press releases were announced by companies working in Mexico, with ten informing on exploration results, six reporting on resources and developments, four communicating deals and corporate issues, and two announcing production results.  ON MEXICO ISSUES, no relevant news.  ON EXPLORATION, In Sonora, Riverside and Kootenay announced exploration results from its Cecilia and La Mina projects respectively. In Chihuahua, Harvest Gold began preparations to drill test its Cerro Cascaron project and Sable Resources released drilling results from its Margarita project.  In Sinaloa, Auxico reported sampling results from its Zamora project In Durango, Gainey announced a 1st phase of exploration at its Las Margaritas project, Orex commenced fieldwork exploration on its San Luis del Cordero project, and Prospero reported drilling results from its Buenavista project. In Zacatecas, Advance Gold started a phase 2 drilling program at its Tabasquena project. In Jalisco, Evrim announced trench and soil results from its Cuale project.  ON MINING, Starcore reported Q1 2018 results from its San Martin mine in Queretaro. US Antimony announced plans to increase its production of Sb, Au and Ag in Mexico. ON FINANCING, no relevant news. ON RESOURCES AND DEVELOPMENT, In Sonora, SilverCrest and Premier Gold released drilling results from its Las Chispas and Mercedes projects respectively. Aura provided an update at its Aranzazu mine in Zacatecas. Candelaria announced a PEA for its Pinos Gold project in Zacatecas.   McEwen reported that hopes to add 12 years of mine life at its El Gallo Complex in Sinaloa.  ON DEALS AND CORPORATE ISSUES, Evrim and First Majestic agreed to exercise the Ermitaño and Cumobabi option agreements in Sonora. New Gold announced the appointment of its new President and CEO (Cerro San Pedro mine, San Luis Potosi). Levon announced results from its annual general meeting (Cordero project, Chihuahua). Vangold withdrew its submission to acquire the San Carlos property in Guanajuato (El Pinguico mine, Guanajuato).

ON MEXICO ISSUES

  • No relevant news.

ON EXPLORATION

  • Riverside Resources Inc., completed 11 N-S lines for soil sampling which returned strong multi-elements anomalies with Au, Pb, Cu, and other key elements. These results along with previous exploration work have outlined four new target areas on its Cecilia project in Sonora. Target 1 is a 4km long by 300m wide target where previous rock sampling has found up to 2 g/t Au in silicified conglomerates , but the soil anomaly is open in both directions beyond the 4 Km and more than 800m wide. Target 2 is a NE trending Ag, Pb, Au, Zn, Sb, Hg and Cu soil anomaly over 2km long and 600m wide in rock cracks with faults and host veining displaying a series of NW striking feeder dikes. Target 3 is a 1km long by 500m wide Au-Zn with minor Ag, Cu, Pb and Bi soil anomaly associated to a N-S trending fault system intersecting Paleozoic limestones. This target is also along the border edge of a magnetic high reported in a regional government geophysics survey likely associated with Pre Cambrian granitic basement.  Target 4 contains “high-grade gold samples in soils and alteration with jasperoid, silicification, and carbonate veining of the Paleozoic limestone that gives a potential limestone hosted Au with anomalous soil assays of Zn, Pb, Ag and Mn”.
  • Kootenay Silver Inc., announced that its partner Capstone Mining Corp., has commenced an exploration program on its la Mina project in Sonora. The exploration program will consists of detailed mapping and rock chip / stream sediment sampling to generate potential drill targets.
  • Harvest Gold Corporation, reported that Evrim Resources, its JV partner and operator on its Cerro Cascaron project in Chihuahua, has mobilized an advance team to the site to start preparations to drill test the property. The drill program, expected to commence at the end of September, will consist of 3,000 m to test the Cascaron Gold targets and the Cascarita Silver targets.
  • Sable Resources, released drilling results from its Margarita project in Chihuahua. Significant intersections are from hole M-DDH-18-09 with 6.5m of 111 g/t Ag Eq, including 3.5m of 153 g/t Ag; hole M-DDH-18-11 with 11.3m of 252 g/t Ag Eq, including 1.3m of 889 g/t Ag Eq; hole M-DDH-18-12 with 12.7m of 98 g/t Ag Eq, including 1.8m of 244 g/t Ag Eq. Additionally, Sable identified a low-grade stockwork style of mineralization evident in numerous holes. The most significant results are hole M-DDH-18-03 with 44.13m of 50 g/t Ag Eq, including 6.95m of 142 g/t Ag Eq; hole M-DDH-18-07 with 7.6m of 54 g/t Ag Eq, and hole M-DDH-18-12 with 21.35m of 37 g/t Ag Eq. “With the first stage of drilling now complete we will evaluate our results and formulate a plan for stage 2 drilling targeting further extensions of Margarita and the other adjacent parallel veins”.
  • Auxico Resources Canada Inc., reported high-grade sampling results from its Zamora project in Sinaloa. Significant results are 0.80m of 4Kg Ag and 29.2 g/t Au at La Franca claim, 600m southwest of the Campanillas mine along a structure that can be followed by at least 600m along strike. Mineralization consists of breccia-stockwork veining containing galena, sphalerite and possible silver sulphosalts, malachite and chalcopyrite. Other significant results are from Aguamas area where some channel samples returned 0.65m of 6.38 g/t Au and 23 g/t Ag; 0.70m of 14.7 g/t Au and 34 g/t Ag; 0.50m of 3.55 g/t Au and 108.7 g/t Ag; and 1.60m of 6.64 g/t Au and 220 g/t Ag.
  • Gainey Capital Corp., announced a phase 1 exploration program on its Las Margaritas project in Durango. Las Margaritas is a mineralized vein system that extends at least 1.5Km along strike and averages 1-2m in width. The 1st phase exploration program will consists of detailed mapping and sampling with the objective to identify prospective areas to generate the best drill targets.
  • Orex Minerals Inc., commenced an exploration program on its San Luis del Cordero project in Durango, where the company has an option to acquire 100% interest in the property from Exploraciones del Altiplano S.A. de C.V. Mineralization at San Luis del Cordero is characterized by skarn and epithermal vein Ag-Cu-Zn as a result of Tertiary-quartz-feldspar-porphyry intrusions affecting Jurassic and Cretaceous limestones, calcareous sandstones and shales. The project has seen several phases of exploration from different mining companies, including 16,400m drilled in 62 holes in the period 2000-2016. The property contains indicated resources of 662.6K tonnes of 121 g/t Ag, 0.78 % Cu and 1.1 % Zn for a total of 5.1M Oz Ag Eq, and inferred resources of 2, 785,300 tonnes of 144 g/t Ag, 0.75 % Cu and 1.45 % Zn, for a total of 24.4 M Oz Ag Eq.
  • Prospero Silver Corp., reported core drilling results from eleven holes totaling 2, 811m drilled at its Buenavista project in Durango. Mineralization drilled-tested at Buenavista consists of structurally controlled epithermal veins centered on a rhyolite dome complex. “All holes cut anomalous silver mineralization, with a best interval of 1.6m @ 353g/t Ag from 185.6m downhole, within a broader interval of 49m @ 43g/t Ag in hole BVF-18-05”.
  • Advance Gold Corp., started a second phase drilling program at its Tabasquena project in Zacatecas to test the La Tabasquena epithermal vein at a depth of 1,800m. Phase 2 will test below the gold discovery hole of phase 1. It also will test some of the potential feeder type targets and all of the veins below the oxide zone which goes down to an estimated 175 metres below surface.
  • Evrim Resources Corp., announced new trench and soil results from its Cuale project in Jalisco. Highlight results include the trench 2 which was extended from 29.4m to 184.1m with an average grade of 0.85 g/t Au, including 59.1m of 1.79 g/t Au, and including 21.6m of 4.18 g/t Au; Trench 4 , extended from 106.2m to 156.2m with an average grade of 9.57 g/t Au, including 64.6m of 20.85 g/t Au, and including 7.5m of 163.31 g/t Au; and Trench 5 which contains 174m of 0.62 g/t Au, including 70m of 1.16 g/t Au, and including 40m of 1.45 g/t Au. A soil grid with 200 metre spacing outlined a Au anomaly over the entire La Gloria prospect with grades >0.01 g/t Au of 2,300m by 800m with a central corridor of 1,700m by 300m >0.1 g/t Au extending north of the trenched area.  “The soil anomaly at higher elevation correlates with elevated silver, antimony, molybdenum, arsenic and low contents of manganese and zinc.  At lower elevations gold correlates with elevated copper, tellurium, arsenic, bismuth and iron”. “The new trench results expand the La Gloria zone to the northwest and the east with consistent gold mineralization.  Soil sampling indicates the La Gloria system footprint is measurably larger with the potential to host a significant deposit and/or additional mineralized centers within the La Gloria prospect”.   “The soil survey has a distinctive high sulphidation signature centred on a large gold in soil anomaly that is approximately 2,300 metres by 800 metres.  The results indicate a potential major system with significant upside for additional mineralized centers within the La Gloria prospect.”

ON MINING

  • Starcore International Mines Ltd., reported Q21 2018 results from its San Martin mine in Queretaro. Starcore milled 77,400 tonnes of 1.53 g/t Au and 49 g/t Ag to produce 3.3K Oz Au and 72.7K Oz Ag, with an all-in sustaining cost of US$ 1,215 for Eq Oz. Metallurgical recoveries were 88.1% for Au and 59.6% for Ag.
  • US Antimony Corporation, produced 131,184 Lb Sb and 1,244 short tonnes of zeolites in August 2018 and announced plans to increase its production of Sb, Au and Ag in Mexico. At its Wadley mine in San Luis Potosi, the general level will be reactivated by cleaning up the waste to provide access and transportation of the lower grade for the mill. At Sierra Guadalupe in Zacatecas, the Santa Monica drift will be restarted. The ore is primarily sulphides and can be upgraded to 60-70% Sb flotation concentrate at its Puerto Blanco Mill to make antimony tri-sulphide. At the Soyatal district in Queretaro, a buying program will be started to purchase direct shipping ore for its Madero smelter. The construction of the cyanide leach plant for the Los Juarez Au-Ag-Sb should allow pilot testing to commence during Q4 2018. The company also closed an agreement purchase, dismantle and transport an antimony plant from Reynosa, Tamaulipas. When installed, the equipment from the Reynosa plant will increase the capacity of the Madero Smelter in Coahuila to approximately 30,000,000 Lb per year of antimony oxide.

ON FINANCING

  • No relevant news.

 

ON RESOURCES AND DEVELOPMENT

  • SilverCrest Metals Inc., released drilling results from its Las Chispas project in Sonora and expanded the high grade at Babicanora Norte vein. Drill holes have intersected additional high-grade Ag-Au mineralization at Babicanora Norte vein which is located about 300m NE of Babicanora vein and apparently is connected with the Granaditas area which contains multiple veins to the southeast. The most significant results are 1.8 m of 15.11 g/t Au and 1,718 g/t Ag or 2,851 g/t Ag Eq, 1.6 m of 8.96 g/t Au and 1,078 g/t Ag or 1,750 g/t Ag Eq and 1.5 m of 4.22 g/t Au and 687 g/t Ag or 1 Kg Ag Eq. The drilling results of Babicanora Norte vein will be part of the upcoming updated resource which will include 8 of the 30 identified veins in the district.
  • Premier Gold Mines Limited, reported drilling results from the Rey de Oro deposit at its Mercedes mine in Sonora. Highlights results include hole UG-R018-013 which returned 12.64 g/t Au and 240.1 g/t Ag across 29.65 m (TW of 13.5 m), hole UG-R018-015 with 0.41 g/t Au and 3120.0 g/t Ag (91.0 oz/ton) across 1.52 m (TW of 1.06 m), and hole UG-R018-012 with 17.00 g/t Au and 321.0 g/t Ag across 1.1 m (TW of 0.8 m) and 4.47 g/t Au and 138.5 g/t Ag across 8.25 m (TW of 6.1 m). “Underground drilling at Rey de Oro consists of step-out and delineation drilling of this recently developed horizon. This drilling continues to intersect some of the widest vein intercepts on the property and demonstrate the potential to continue to extend the mine life at Mercedes”.
  • Aura Minerals Inc., provided an update at its Aranzazu mine in Zacatecas. Aura has obtained all the necessary permits and initiated the construction of the new tailings disposal system. “The Company expects the Aranzazu mine to achieve commercial production later this year and to achieve the average processing of 2,600 tonnes per day shortly thereafter”.
  • Candelaria Mining Corp., announced a PEA for its Pinos Gold project in Zacatecas. Highlight results from the PEA indicate an after tax net present value (NPV) of US$ 12M using a 5% discount rate, an after tax internal rate return (IRR) of 25%, and a 7 years life of mine with projected gold equivalent ounce (“GEO”) production of 89,000. The PEA includes a mineral resource estimate as of September 13, 2018. Measured resources (Dump) are 85,847 tonnes of 1.6 g/t Au and 83 g/t Ag for a total of 4,444 Oz Au and 229K Oz Ag. Indicated resources are 175,697 tonnes of 3.6 g/t Au and 47 g/t Ag for a total of 20.6K Oz Au and 268K Oz Ag. Inferred resources are 529,267 tonnes of 3.6 g/t Au and 48 g/t Ag for a total of 60.7K Oz Au and 811K Oz Ag. Average recovery for Au and Ag are 90 and 80% respectively. The company plans to have an annual production of 12,700 GEO with an overall average direct cash cost of %US 666 per GEO.
  • McEwen Mining Inc., reported that hopes to add 12 years of mine life at its El Gallo Complex in Sinaloa, combining mineralized sources from five locations that will be developed in two distinct process plant construction phases. McEwen plans to produce 47K Oz Au Eq per year.
  • Bacanora Lithium plc., announced plans to start the mine construction on its Sonora Lithium project in Sonora. $US 420M will be invested in the first phase and is expected to begin to operate in 2020.

ON DEALS AND CORPORATE ISSUES

  • Evrim Resources Corp., and First Majestic Silver Corp., agreed to exercise the Ermitaño and Cumobabi option agreements in Sonora. First Majestic has completed its 100% earn-in for both projects. First Majestic has paid $1.5M in cash to Evrim and has granted a 2% NSR in the case of Ermitaño project and 1.5% NSR in the case of Cumobabi project.
  • New Gold Inc., announced the appointment of its new President and CEO (Cerro San Pedro mine, San Luis Potosi).
  • Levon Resources Ltd., released results from its annual general meeting (Cordero project, Chihuahua).
  • Vangold Mining Corp., withdrew its submission to the TSX Venture Exchange to acquire the San Carlos property in Guanajuato.

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 banded quartz vein in an intermediate sulphidation epithermal project in Zacatecas, Mexico.  Photo by Miguel A Heredia.

Capstone Mining Announces High Grade Step-out Holes at Cozamin Mine

CS-Cozamin-Exploration-Update-Sept2018-NR-FINAL

Vancouver, British Columbia – Capstone Mining Corp. (“Capstone”) (TSX: CS) today announced high grade results from step-out drilling at its Cozamin Mine in Mexico, which will be included in a re-estimation of mineral resources in the Mala Noche Footwall Zone (“MNFWZ”) later this year. Since the last Mineral Resource estimate, effective March 31, 2018, Capstone has completed 46 additional holes, including 23 step-out holes beyond the boundaries of the March 31 model.

Evrim expands outcropping gold mineralization at Cuale high sulphidation project

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ancouver B.C. — September 12, 2018: Evrim Resources Corp. (TSX.V:EVM) (“Evrim” or the “Company”) is pleased to announce new trench and soil results from the Phase 3 exploration program at its 100%-owned Cuale high sulphidation epithermal gold project in Jalisco, Mexico. The new trench results expand the La Gloria zone to the northwest and the east with consistent gold mineralization. Soil sampling indicates the La Gloria system footprint is measurably larger with the potential to host a significant deposit and/or additional mineralized centres within the La Gloria prospect.

Highlights on the First Week of September, 2018. Mining and Exploration News in Mexico

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By Jorge Cirett

During the 36th week of the year (September 3rd to September 9th, 2018), at least 18 press releases were announced by companies working in Mexico. Prize Mining, Minaurum, Azure, and Kootenay released advances in exploration. Telson Mining released some clarifications to its operating Q2 2018 results. Prospero reported news on financing. Goldplay, Consolidated Zinc, Torex, Southern Silver, Impact Silver, Magellan Gold, and Aura Minerals reported on development of its properties. Golden Minerals, Sonoro and GoGold reported deals on properties or royalties. ON MEXICO ISSUES, AMLO announced cabinet posts in Economy, including the new Sub-secretary of Mining, Francisco Quiroga. The Mexican Core Shack now counts with displays from three properties in Chihuahua, two in Durango, two in Estado de Mexico, one in Guerrero and one in Puebla. ON EXPLORATION, In Sonora, Minaurum has resumed drilling at its Alamos Silver property. Azure reported high-grade surface results from its Oso Negro property and Kootenay released surface sampling results from its Malé project. In Coahuila Prize Mining announced a coming drill campaign on its Manto Negro project.  ON MINING Telson Mining presented some clarifications on its Q2 report, and some figures on production costs from the Campo Morado mine.  ON FINANCING, Prospero Silver announced a strategic investment by Fortuna Silver for US$270 K. ON RESOURCES AND DEVELOPMENT, Goldplay released results from its San Marcial project in Sinaloa. Consolidated Zinc is to start mining in Plomosas, Chihuahua. Torex presented an updated technical report and a new mine plan on its El Limon-Guajes property in Guerrero. Southern Silver presented assay results from drilling at its Cerro Las Minitas property in Durango. Impact Silver announced the discovery of a new ore shoot on its Zacualpan property in Estado de Mexico. Magellan is planning to mine on its El Dorado property in Nayarit. Aura Minerals filed a FS and technical report on the restarting of its Aranzazu mine in Zacatecas. ON DEALS AND CORPORATE ISSUES, Golden Minerals sold its remaining interest on the Celaya property in Guanajuato to The Electrum Group for US$3 M. Sonoro optioned an inner concession within its Cerro Caliche property for US$100 K in two payments. GoGold sold its 2% NSR on the Santa Gertrudis project in Sonora to Metalla Royalty.

ON MEXICO ISSUES

  • Andres Manuel Lopez Obrador (AMLO), the president elect in Mexico, announced cabinet posts within the Secretaría de Economía (Bureau of Economy) for its incoming government. Graciela Márquez, as Secretary, is to be supported by Luz Maria de la Mora in Subsecretaría de Comercio Exterior (Foreign Commerce), Ernesto Acevedo Hernández in Subsecretaria de Industria y Comercio (Industry and Commerce), and Francisco Quiroga, on charge of the Subsecretaría de Minería (Mining). Francisco Quiroga was director of International Planning for Grupo Villacero, and worked for a couple of years at Arcelor Mittal México. He has master degrees from Yale and New Zealand, with expertise in international metal markets, steel, commodities and mining, as well as anti-dumping practices and industry. The Mexican Core Shack added images of drill core from Almaden’s Ixtaca project in Puebla, at https://gambusinoprospector.com/mexican-core-shack/puebla/ixtaca/ . The Mexican Core Shack now displays three properties in Chihuahua, two in Durango, two in Estado de Mexico, one in Guerrero and one in Puebla.

ON EXPLORATION

  • Prize Mining Corp. commenced the phase II exploration program on its Manto Negro project in Coahuila. This phase will consist of 3,000 m of diamond drilling, “3D modeling of drill intersections and artisanal underground workings”, a GIS compilation and preliminary metallurgical test work. At El Granizo, “strong copper mineralization is exposed on surface for a strike length of 550 metres and dips moderately to the southwest. Mineralization is hosted in the San Marcos red-bed sandstone close to the contact with the overlying Cupido limestone”. At Pilar Grande drilling will test a 200 by 50 m area containing the underground workings.
  • Minaurum Gold Inc. has resumed drilling at the Alamos Silver project in Sonora. The 5,000 m (or greater) drill program is to focus in seven untested veins exposed at high structural levels in down-dropped blocks outside of the historic mining corridor. “One hole will test the Minas Nuevas vein at depth and a second hole will test the Púlpito and Cotera vein zone projections. Eight more holes are planned on targets on the completely virgin eastern side of the historic La Quintera – Promontorio vein zone, including the Tigre, Ana, and Amalia vein zones, and the breccia body located south of Amalia and Tigre; as well as the Promontorio Sur vein zone to the south of Promontorio vein. The drill program will be expanded as new targets are generated.”
  • Azure Minerals Ltd. reported high grade assays from surface sampling at its Oso Negro property in Sonora. The project comprises a 1,119 ha concession application and an adjoining 156 ha concession purchased for US$35 K. Both concessions contain epithermal mineralization like quartz veins and quartz stockworks in zones of strong alteration, with galena and sphalerite within the quartz veins, which can attain widths of up to 5 m and lengths of 800 m. Of 88 samples collected, 37 returned over 100 g/t Ag, including 9 samples over 1,000 g/t Ag, and a peak of 2,680 g/t Ag. Of 88 samples collected, 37 samples returned over 1.0 g/t Au, including 7 samples over 5.0 g/t Au and up to 100.5 g/t Au.
  • Kootenay Silver Inc. released additional high-grade sampling results on its Malé project in Sonora. Thirty three sample collected from old pits and small trenches returned 19 samples with values over 1.0 g/t Au, with the highest running 12.1, 17.0, 24.7 and 36.0 g/t Au. “The Malé gold project is a granitic-hosted gold dominant polymetallic vein and vein stockwork system covering an area of 1500 x 1500 meters with numerous showings highly anomalous in gold…..Mineralization occurs as narrow veins, veinlets and stockworks of quartz with or without sulphides within structures projecting in a dominant northeast trend and a secondary northwest trend”.

ON MINING

  • Telson Mining Corp. presented some clarifications to its Q2 2018 financial report (please see press release for details). The “Campo Morado Mine has achieved direct site costs for mining, milling and administration during Q2 of approximately US$56.6, US$51.6 and US$51.8 per tonne respectively for, April, May and June. These current direct site costs are approximately 36% lower than the estimated direct site costs of US$72.26 per tonne used for the same categories in Telson’s recently published independent Preliminary Economic Assessment and approximately 40% lower than the previous operator’s last year of production during 2014”.

ON FINANCING

  • Prospero Silver Corp. arranged a US$270 K strategic investment from Fortuna Silver Mines Inc. Fortuna currently owns 20.3% of Prospero current and outstanding shares, and this private placement is to take that proportion to 26.9%. The proceeds will be allocated to test the Bermudez project in Chihuahua with a 3-hole 1,500 m drill program.

ON RESOURCES AND DEVELOPMENT

  • Goldplay Exploration Ltd. disclosed additional results from sampling of the historical core drill holes completed in 2011 on the project San Marcial, in Sinaloa. Highlighted true width (TW) new results from two holes comprise 53.6 m @ 57 g/t Ag, 0.1% Pb, 0.4% Zn (including 5.6 m @ 253 g/t Ag, 0.2% Pb, 0.6% Zn); 46.5 m @ 57 g/t Ag, 0.3% Pb, 0.4% Zn (including 15.5 m @ 115 g/t Ag, 0.5% Pb, 0.7% Zn, same that include 3.25 m @ 411 g/t Ag, 1.9% Pb, 2.2% Zn).
  • Consolidated Zinc Ltd. is to start mining at its Plomosas project in Chihuahua. “The CZL Board has approved the development plan and mining will commence immediately with monthly receipts commencing mid October 2018”. CZL secured a finance package by way of convertible notes. The mined ore will be processed at Grupo Mexico’s plant in Santa Eulalia, Chihuahua, and the concentrate is to be sent to the same group’s smelter in San Luis Potosi. CZL “is confident that the first cashflow can be achieved for a capital cost less than US$500,000 and the C1 operating costs are expected to be less than US$0.50/lb Zinc after by-product credits”.
  • Torex Gold Resources Inc. completed an updated technical report that includes a life of mine plan (LOM) of nine years and an increased average gold production of 430 K Oz Au per year, from 2019 to 2023 at its Limón-Guajes mine in Guerrero.” The TR also contains an updated Media Luna Preliminary Economic Assessment (PEA), with an after-tax NPV (5%) of $582M, and an after-tax IRR of 27%”.  El Limon Guajes updated TR, Sept 20181
  • Southern Silver Exploration Corp. reported assay results from initial core drilling on the 12,000 m 2018 drill program at its Cerro Las Minitas property in Durango. Highlighted true width (TW) intervals comprise 15.1 m @ 280 g/t Ag, 0.18% Cu, 0.9% Pb, 0.1% Zn (including 4.4 m @ 598 g/t Ag, 0.4% Cu, 2.1% Pb, 0.1% Zn) on the Skarn Front deposit, and 0.6 m @ 79 g/t Ag, 0.4 g/t Au, 1.2% Cu, 0.1% Pb, 14.1% Zn; 2.0 m @ 88 g/t Ag, 0.3 g/t Au, 0.2% Cu, 1.1% Pb, 2.6% Zn in Las Victorias zone, which extend mineralization for over 100 m to the southeast.
  • Impact Silver Corp. announced the discovery of a new ore shoot on the Lipton vein of the Guadalupe mine at its Zacualpan property in Estado de Mexico. To date the new zone has been drilled over a length of 120 m and vertical distance of 80 m, remaining open in all directions. Some of the highlighted true width intervals comprise 10.57 m @ 201 g/t Ag, 0.13 g/t Au, 0.2% Pb, 0.5% Zn (including 4.18 m @ 381 g/t Au, 0.09 g/t Au, 0.4% Pb, 1.1% Zn); 7.74 m @ 466 g/t Ag, 0.13 g/t Au, 0.5% Pb, 1.1% Zn; 8.82 m @ 306 g/t Ag, 0.11 g/t Au, 0.2% Pb, 0.5% Zn; 1.53 m @ 240 g/t Ag, 0.04 g/t Au, 0.7% Pb, 2.5% Zn; 2.87 m @ 308 g/t Au, 0.19 g/t Au, 0.3% Pb, 0.4% Zn.
  • Magellan Gold Corp. is focused on advancing El Dorado project in Nayarit towards production, planning to truck the ore to the SDA mill for processing. “The drilled resource appears to be sufficient to support an underground mining operation for five years at a mining rate of 100 tonnes per day….”. Magellan is applying for the necessary environmental and blasting permits, as well as quotes for contract mining.
  • Aura Minerals Inc. filed the NI-43-101 Feasibility Study and Technical Report on the Aranzazu mine in Zacatecas.

ON DEALS AND CORPORATE ISSUES

  • Golden Minerals Co. has sold its remaining interest on the Celaya property in Guanajuato, to The Electrum Group LLC. Golden Minerals is to receive a payment of US$3.0 M for selling 100% of its remaining mining concessions and related interests in the Celaya project located in Guanajuato.
  • Sonoro Metals Corp. optioned from a private owner the 9 ha “El Colorado” mining concession, within its Cerro Caliche project in Sonora. “The Option Agreement provides for Sonoro to acquire a 100% interest in El Colorado for total consideration to the Vendor of US$100,000, of which US$50,000 has been paid and the balance due in 6 months”. Seven thorough-going veins surrounded by quartz sotckwork areas and sheeted quartz veinlet zones present limited mining evidenced by tunnels, pits and trenches.
  • Metalla Royalty & Streaming Ltd. entered with GoGold Resources Inc. into an agreement to purchase a 2% net smelter return royalty on the Santa Gertrudis property in Sonora, for US$12 M in cash. The agreement is subject to a right of first refusal held by the owner of the project, Agnico Eagle Mines Ltd., right that has to be exercised with 45 days.

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

On the image above, argillitized volcanic rocks above the famous Vizcaína vein in the Pachuca District, Hidalgo. Picture by Jorge Cirett.

Highlights on the Fifth Week of August, 2018. Mining and Exploration News in Mexico

rhythmically banded quartz vein

By Miguel A Heredia

During the 35th week of the year (August 27th to September 2nd, 2018), at least 18 press releases were announced by companies working in Mexico, with seven informing on exploration results, five announcing financing issues, four communicating deals and corporate issues, one reporting production results, and one reporting on resources and developments.  ON MEXICO ISSUES, no relevant news.  ON EXPLORATION, In Sonora, Azure reported that project operator Teck Resources commenced its second drilling campaign on the El Alacrán project; Minaurum acquired two additional mineral concessions at its Alamos Silver project and discovered three new veins; Ridgestone commenced a 1,400m drilling program at its Rebeico project; and Riverside provided an exploration update of its Mexican projects portfolio.  In Chihuahua, Harvest approved the budget to drill its Cerro Cascaron project, and Radius mobilized a drill team to explore its Amalia project. In Sinaloa, Goldplay reported historical core sampling results from its San Marcial project.  ON MINING, Santacruz reported Q2 2018 results from their Veta Grande project in Zacatecas and the El Rosario project in San Luis Potosi. ON FINANCING, Evrim closed a private placement for $7,272,601.50. Prize closed the first tranche of a private placement for $1,530.000. Vangold announced a non-brokered private placement for up to $500,000. Sable launched an early warrant exercise incentive program to exercise warrants exercisable for common shares. ON RESOURCES AND DEVELOPMENT, Endeavour updated mineral reserves and resource estimates and a PFS on its Terronera project in Jalisco. ON DEALS AND CORPORATE ISSUES, Silver Viper terminated its option agreement on the Clemente project in Sonora with Riverside. Ethos Gold entered into an option agreement to acquire a contiguous claim to its la Purisima project in Chihuahua. Santacruz amended the Contracuña option and a short-term loan agreement. Endeavour announced an initiative to reduce capital and operating costs.

ON MEXICO ISSUES

  • No relevant news.

ON EXPLORATION

  • Azure Minerals Limited, announced that Teck Resources commenced its second drilling campaign on the El Alacrán project in Sonora. Two diamond drill rigs have been mobilized to carry out a 5,000m program with the objective to test high priority drill targets including Cerro Alacrán (porphyry Cu target) and Cerro Simon (epithermal Au-Ag target).
  • Minaurum Gold Inc., acquired the 10,159 Ha La Quintera claim and the 400 Ha Yoreme claim to expand its land package to 16,134 Ha at its Alamos Silver project in Sonora. Three new veins have been discovered on the Yoreme concession measuring between 900m to 1,800m long. Vein sampling returned from anomalous up to 250 g/t Ag, 1.29% Cu, 4.74% Pb, and 1.99% Zn. “With the newly found Yoreme veins, we have outlined a vein swarm of 12 prominent and separate veins within an overall corridor measuring 10 km long and 2.7 km wide at Alamos.” stated Darrell Rader, President and CEO of Minaurum. “The new claims not only triple the size of our holdings but also ensure that we control the strike of all known veins, greatly expanding the impressive untested exploration potential at Alamos.”
  • Ridgestone Mining Inc., commenced a 1,400m diamond drill program at its Rebeico Au-Cu project in Sonora. The drilling program has the aim to test for Au-Cu mineralization below historical workings along the Alaska vein which has a strike length of over 1km and is open at depth.
  • Riverside Resources Inc., provided an exploration update of its projects portfolio. At its Cecilia project in Sonora, the company is conducting a soil survey sampling covering the larger surrounding concession acquired through the Mexican lottery system last year. Riverside also announced that Silver Viper Minerals Corp terminated its option on the Clemente project in Sonora and is currently compiling all the new information. It is also refining targets on its three copper assets in Sonora: Thor, Ariel and El Teco.
  • Harvest Gold Corporation, approved the drill program budget submitted by Evrim Resources Corp., for the diamond drill program at its Cerro Cascaron project in Chihuahua. The drill program will consists of 3,000m in 15 holes to cover seven target areas and is expected to initiate in late September.
  • Radius Gold Inc., mobilized a drill team to explore its Amalia project in Chihuahua. The 2,000m drill program will be conducted by Pan American Silver and is expected to commence in September on multiple drill targets, including Campamento target, a 500m by 70m zone of intense silicification and brecciation with massive and stockwork veining; Guadalupe target, a high-grade andesite hosted structurally controlled breccia zone, and Dulces target, a poorly exposed vein within an extensive area of argillic altered andesite volcanics and related Au in soil anomaly.
  • Goldplay Exploration Ltd., reported sampling results of the historical core from its San Marcial project in Sinaloa and confirms open pit target near surface with 46m of 129 g/t Ag Eq, including 7.5m of 379 g/t Ag Eq, and 1.5m of 1,079 g/t Ag Eq.

ON MINING

  • Santacruz Silver Mining Ltd., reported Q2 2018 results from its Veta Grande project in Zacatecas and the El Rosario project in San Luis Potosi. 52,025 tones were processed during Q2 2018 to produce 52K Oz Ag at a production cost of $66.12 per tonne.

ON FINANCING

  • Evrim Resources Corp., closed a private placement with Newmont Canada Corporation for $7,272,601.50. Proceeds from the private placement will provide funding for the Cuale high sulphidation epithermal gold project in Jalisco, Mexico and for general corporate purposes.
  • Prize Mining Corporation, closed the first tranche of a brokered private placement for $1,530,000. Net proceeds will be used on its Manto Negro project in Coahuila.
  • Vangold Mining Corp., announced a non-brokered private placement financing for up to $500,000. Net proceeds will be used to advance its Pinguino mine project in Guanajuato.
  • Sable Resources Ltd., launched an early warrant exercise incentive program to encourage the early exercise of up to 27,205,500 of its outstanding unlisted warrants exercisable for common shares at a price of $0.25.

 

ON RESOURCES AND DEVELOPMENT

  • Endeavour Silver Corp., updated mineral reserves and resource estimates and a PFS on its Terronera project in Jalisco. Indicated resources are 4,363,000 tonnes of 239 g/t Ag and 2.53 g/t Au for a total of 33.4M Oz Ag and 354K oz Au. Inferred resources are 1,073,000 tonnes of 252 g/t Ag and 2.38 g/t Au for a total of 8.8M Oz Ag and 82K Oz Au. Probable reserves are 4,701,000 tonnes of 226 g/t Ag and 2.28 g/t Au for a total of 33.8M Oz Ag and 342K Oz Au. The company also disclosed results of the PFS. Highlights include a mine life of 9.5 years with average annual production of 5.1M Oz Ag Eq in phase 2 (year 3 and onwards); a cash cost of $0.15 per Oz Ag, net of Au by-product credits and all in sustaining cost of $1.36 per Oz Ag, net of Au by-product credits, and a robust economics including an after-tax 5% NPV of $117.8M (51% increase from 2017 PFS), an Internal Rate of Return of 23.5% and Payback period of 5.4 years.

ON DEALS AND CORPORATE ISSUES

  • Silver Viper Minerals Corp., terminated its option agreement on the Clemente project in Sonora with Riverside Resources Inc.
  • Ethos Gold Corp., entered into an option agreement to acquire an 897 Ha contiguous claim to its la Purisima project in Chihuahua. The company can acquire the 100% interest of the property at any time during the 10 years following closing of the option agreement by paying the property owner staged payments for US$550,000 and granting a 2% NSR royalty on the property of which the company can purchase 50% at any time by paying US$ 1M.
  • Santacruz Silver Mining Ltd., amended the option agreement with the Contracuña group of companies to acquire 100% ownership of the Veta Grande mine and milling facilities as well as the Minillas project in Zacatecas. Santacruz also amended the repayment terms of the US$2.3M short-term loan it has with a private Bolivian mining company. Pursuant to the amended terms the principal balance of US$2.3 million is now to be repaid in October 1, 2018
  • Endeavour Silver Corp., announced an initiative to reduce capital and operating costs due to the drop in precious metal prices this quarter. The exploration group will cease all drilling activities and will be focused on preparing new resource estimates and planning for 2019 to resume their drilling programs. The development group working on Terronera project in Jalisco has delayed hiring for certain positions and will not commence already permitted earthworks on the roads and plant site until receipt of final government permits for the mine dumps and plant tailings. It also conducted a review of possible short-term improvements to increase revenue and decrease costs at each of their mines to year-end.

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 rhythmically banded quartz vein in a low sulphidation epithermal project in Durango, Mexico.  Photo by Miguel A Heredia.

Minaurum Expands Alamos to 16,134 Hectares; Discovers Three New Veins

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Minaurum Gold, Inc., (“Minaurum”) is pleased to announce that it has acquired the 10,159-ha La Quintera 3 claim and the 400-ha Yoreme claim, expanding its Alamos Silver Project in Mexico to 16,134-has.  Initial mapping and sampling has revealed three vein systems on the Yoreme claim measuring between 900 m to 1800 m long.  Vein sampling has returned grades ranging from anomalous up to 250 g/t Ag, 1.29% Cu, 4.74% Pb, and 1.99% Zn.

Highlights on the Fourth Week of August, 2018. Mining and Exploration News in Mexico

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By Jorge Cirett

During the 34th week of the year (August 20th to August 26th, 2018), at least 17 press releases were announced by companies working in Mexico. Aztec Minerals, Discovery Metals, and SilverCrest Metals released advances in exploration. Grupo Mexico and Santacruz Silver Mining released its Q2 2018 results. SilverCrest Metals, Silver Bull, Avino Silver and Prize Mining reported news on financing. Azure Minerals reported advances on the PEA and new drilling of one of its projects. ON MEXICO ISSUES, The Mexican Core Shack now counts with displays from three properties in Chihuahua, two in Durango and two in Estado de Mexico. ON EXPLORATION, In Sonora, Aztec Minerals released results from surface sampling along drill roads on its Cervantes project. In Coahuila, Discovery Metals released results from underground sampling at its Puerto Rico project.   ON MINING Grupo Mexico and Santacruz Silver released its Q2 2018 reports. Grupo Mexico is to re-open its San Martin mine in Zacatecas.  ON FINANCING, Silver Bull and Prize Mining closed final tranches of financing for gross proceeds of US$3.79 M and $7.62 M respectively. ON RESOURCES AND DEVELOPMENT, Azure Minerals is advancing the PEA on its Oposura property in Sonora, and announcing a new drilling campaign. SilverCrest released more drilling results from its Las Chispas project in Sonora. ON DEALS AND CORPORATE ISSUES, Alio Gold announced several changes in senior management, as well as at its corporate head office in Vancouver, related to the recent focus on its operating mines.

ON MEXICO ISSUES

ON EXPLORATION

  • Aztec Minerals Corp. released surface sampling results from the California prospect within its Cervantes project in Sonora. The rock chip channel samples were collected along drill roads, returning 75 m @ 0.11 g/t Au; 222 m @ 0.47 g/t Au; 84 m @ 0.40 g/t Au; 183 m @ 0.32 g/t Au; 81 m @ 0.53 g/t Au; 33 m @ 0.26 g/t Au; 111 m @ 0.02 g/t Au. Aztec’s CAD$182 K phase 2 exploration program “of geological mapping, rock, soil and sediment sampling and airborne magnetic and radiometric surveys is focused on better defining additional drill targets” on the 3,649 hectares property. Soil surveys highlight strong gold anomalies at the California north, Purisima East, Purisima West and Jacob soil grids, with individual samples returning up to 3.3 g/t Au. The Cervantes property is held under an option to purchase agreement with Kootenay Silver Inc.
  • Discovery Metals Corp. reported the second batch of underground channel sampling results from the San Jose mine at its Puerto Rico project in Coahuila. “San Jose contains approximately 630m of underground drifts and stopes over four levels (from bottom to top: the Chuyon, Haulage, Rope and Upper levels) that span an approximate vertical extent of 50m and cover a horizontal extent of approximately 80m by 80m. All four levels host strongly mineralized mantos, chimneys and faults. Channel samples were collected at 3-5m intervals along both sides of the entire length of the developed workings”. Individual samples are as high as 1.2 m @ 10 g/t Ag, 46.2% Zn, 0.2% Pb, 0.2% Cu; 0.7 m @ 154 g/t Ag, 38.2% Zn, 0.6% Pb, 0.1% Cu; 1.0 m @ 18 g/t Ag, 30.2% Zn, 0.1% Pb, 2.6% Cu; 1.0 m @ 445 g/t Ag, 3.5% Zn, 26.3% Pb, 0.6% Cu.discoverymetals_nr-2018-08-2311

ON MINING

  • Santacruz Silver Mining Ltd. reported operating results from the Veta Grande project in Zacatecas and the Rosario project in San Luis Potosi, for the second quarter 2018. At Veta Grande, 52 K tonnes @ 70 g/t Ag, 0.17 g/t Au, 1.14% Zn, 0.41% Pb (161 g/t AgEq) were processed, with a 45% Ag recovery, to produce 36.7 K Oz Ag, 59 Oz Au, 111 tonnes Pb, 164 tonnes Zn. At Rosario, 15.4 K tonnes @ 44 g/t Ag, 0.26 g/t Au, 2.54% Zn, 0.23% Pb (212 g/t AgEq) were processed, with 89% Ag recovery, to produce 19.4 K Oz Ag, 84 Oz Au, 31 tonnes Pb, 344 tonnes Zn.
  • Grupo México is to reopen its San Martin mine in Zacatecas, with an investment of US$77 M. The mine was closed eleven years ago due to a labor dispute with the Sindicato Nacional de Trabajadores Mineros, led by Napoleon Gomez Urrutia. The mine workers have now changed to the Sindicato Nacional de Trabajadores de la Exploración, Explotación y Beneficio en Minas de la República Mexicana, ending the closure by strike of the mine. The mine is to have a 32 years life span, creating directly 600 jobs and indirectly 3,000 more.
  • Grupo México reported its second quarter 2018 results. During the period sales increased 19%, while the EBITDA rose to US$1,316 M, and capital investments rose to US$434 M.

ON FINANCING

  • SilverCrest Metals Inc. has been approved to list its common shares on the New York Stock Exchange (Las Chispas, Sonora).
  • Silver Bull Resources Inc. completed the second and final tranche of its previously announced private placement, for aggregate gross proceeds of USD$957.5 K. Under the first tranche of the private placement Silver Bull accrued USD$2.831 M (Sierra Mojada, Coahuila).
  • Avino Silver & Gold Mines Ltd- filed a shelf registration statement on Form F-3 with the Securities and Exchange Commission (SEC), that is to allow the company to raise up to US$25 M (Avino, Durango).
  • Prize Mining Corp. closed the third and final tranche of the recently announced non-brokered private placement, raising $500 K and taking the total aggregate of gross proceeds to $7.62 M (Manto Negro, Coahuila).

ON RESOURCES AND DEVELOPMENT

  • Azure Minerals Ltd. announced that the preliminary economic assessment (PEA) on its Oposura project in Sonora remains on track to be reported in the third quarter of 2018. The study envisions open pit and room and pillar underground extraction. The resource includes 2.1 Mt (tonnes) @5.3% Zn, 2.9% Pb, 17.2 g/t Ag in the indicated category and 0.8 Mt @ 4.3% Zn, 2.5% Pb, 16.5 g/t Ag in the inferred category.
  • SilverCrest Metals Inc. announced new drill results from the Granaditas vein and the new Granaditas Dos vein at its Las Chispas property in Sonora. These veins are approximately 40 m apart and may intersect to the southeast. Highlighted true width (TW) intercepts include 1.2 m @ 5.6 g/t Au, 15 g/t Ag; 1.3 m @ 4.2 g/t Au, 229 g/t Ag; 1.2 m @ 3.10 g/t Au, 4.0 g/t Ag in the Granaditas vein, 0.5 m @ 1.8 g/t Au, 149 g/t Ag; 0.4 m @ 2.4 g/t Au, 421 g/t Ag; 2.9 m @ 294 g/t Ag; 1.2 m @ 1.2 g/t Au, 162 g/t Ag in the Granaditas Dos vein and 0.9 m @ 1.0 g/t Au, 82 g/t Ag; 1.4 m @ 2.5 g/t Au, 799 g/t Ag in an unnamed vein. The high-grade footprint in the Granaditas Vein currently measures approximately 200 m long by 200 m high and is open in most directions. The high-grade footprint in the Granaditas Dos (2) Vein currently measures approximately 100 m long by 100 m high and is open in most directions.
  • Azure Minerals Ltd. recommenced drilling at its Oposura project in Sonora. This campaign is focused on infill drilling and more widely spaced resource extensional drilling.

ON DEALS AND CORPORATE ISSUES

  • Alio Gold Inc. announced changes related to the recent focus on its operating mines San Francisco in Sonora and Florida Canyon in Nevada, which include the previously announced temporary suspension of exploration and development at its Ana Paula project in Guerrero, and the here stated termination of the Vice-president of project development Project Manager and the Chief Executive Officer. “The Company has also taken steps to reduce costs at the Ana Paula project site in Mexico while maintaining a level of local employment and community engagement…..the Company has also implemented a number of changes at its corporate office in Vancouver which in total are expected to reduce the corporate overhead by approximately $1.2 million over the next 12 months.“
  • Defiance Silver Corp. renegotiated and extended the terms of its San Acacio Project option agreement. “The project vendor has agreed to postpone a substantial amount of the payments due in 2018 to September 27, 2020. As a result, Defiance will be making four quarterly payments of US$226,900 totaling US$907,600 in year one and four quarterly payments of US$250,000 totaling US$1,000,000 in year two with the final option payment due September 2020.”

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, the silicified and alunite bearing ridge beyond the farming fields is interpreted as the water table interface in a shallow epithermal system, in Guanajuato. Picture by Jorge Cirett.