The Mining and Exploration News in Mexico: Highlights on the Fourth Week of April, 2021.

Mesothermal sheeted quartz veins

By Miguel A Heredia

During the 16th week of the year (April 19th to April 25th, 2021), at least 33 press releases were announced by companies working in Mexico and 5 news published by the media, with twelve informing on exploration results, nine disclosing deals and corporate issues, five commenting on Mexican issues, four announcing financial rounds, four reporting on resources and development, three communicating production results, and one discussing social issues.  ON MEXICO ISSUES, The Ministry of Economy issued an informative note to correct what President López Obrador said about the expansion of the operations of the mining company El Boleo that operates in Baja California Sur. Fernando Alanís, president of the Mining Chamber of Mexico (Camimex), stated that the mining industry in Mexico paid MXP $30,374M in taxes during 2020. The Mining Chamber of Mexico (Camimex) stressed that mining is a tractor industry that, in addition to boosting the regional economy, supports the development of other economic activities. The Mexican mining industry called on the environmental authorities to hold a dialogue to understand the reasons why the permits are being stopped. Representatives of the Mexican Mining industry asked the federal government to reactivate mineral concessions to increase investments in the sector. ON EXPLORATION, In Baja California, One World Lithium commenced the DDH-3 drilling program at its Salar del Diablo project. In Sonora, Alamos Gold commenced an initial drilling program at Los Venados project, Silver Spruce and its partner received the approved environmental permit from SEMARNAT to drill its El Mezquite project, and Colibri released trenching sampling results from its flagship Evelyn project. In Chihuahua, Mammoth reported results from an additional 2km 3D modeling IP/Mag survey conducted at its Tenoriba project.  In Sinaloa, Kootenay provided an update on the current drilling program conducted at its Copalito project. In Durango, Mithril informed on the exploration activities carried out during Q1, 2021 at its Copalquin project. In Zacatecas, Advance Gold announced drilling results from its Tabasquena project, and Zacatecas Silver reported that it has completed first pass geological and structural mapping, and sampling of the San Gil breccia Zone at its Zacatecas Silver project. In Jalisco, GoGold released results from eight diamond holes collared at its Los Ricos North project. ON MINING, Golden Minerals reported Q1, 2021 production results from its Rodeo mine in Durango. Gold Resource announced Q1, 2021 preliminary production results from its Oaxaca Mining Unit in Oaxaca. McEwen reported the production of 1, 300 Oz AuEq (GEOs) from residual leaching at its El Gallo mine in Sinaloa during the first quarter of 2021.  ON  FINANCING, Colibri granted 1.9M incentive stock options to officers, directors, and consultants (Evelyn project, Sonora). Empress Royalty granted 8.9M stock options to directors, officers, consultants, and employees (Pinos project, Zacatecas). Pantera Silver applied to trade on the OTCQB Venture Market operated by the OTC Markets Group Inc. in New York (The Nuevo Taxco Silver project, Guerrero). Sonoro closed its oversubscribed non-brokered private placement for gross proceeds of $3,111.045 (Cerro Caliche project, Sonora).   ON RESOURCES AND DEVELOPMENT, Discovery Silver presented results from 13 diamond holes collared at its Cordero project in Chihuahua. Excellon reported underground expansion and exploration drilling results from its Platosa mine in Durango. Sierra Metals announced an investment of USD $28M for the construction of an iron ore processing plant to produce magnetite concentrate at its Bolivar mine in Chihuahua. Silver Tiger released high-grade drilling results from its El Tigre project in Sonora.  ON DEALS AND CORPORATE ISSUES, Empress appointed a new member to its Board of Directors, and two members as Strategic and Technical Advisors (Pinos project, Zacatecas).  Golden Goliath held its annual general meeting of shareholders (San Timoteo property, Chihuahua). Goldgroup provided a legal update on its dispute with DynaResource regards the San Jose de Gracia property in Sinaloa. Inomin announced the hiring of two members to lead its exploration program in Oaxaca, Mexico (La Gitana project, Oaxaca). Masivo Silver announced it is moving forward to sign a definitive agreement on several mineralized mining concessions comprising La Santa Madre project in Sinaloa. Ridgestone appointed Dante E Aguilar as its Mexican Country Manager (Rebeico project, Sonora). Santacruz announced that the acquisition of the Zimapan mine assets from Minera Cedros, S.A.de C.V. together with the USD $17.6M loan facility from Trafigura Mexico, S.A. de C.V., are now expected to close on or about April 23, 2021. Silver Bull presented results from its annual general meeting of shareholders (Sierra Mojada project, Coahuila).  Vizsla Silver announced the spinout of Vizsla Copper through a statutory plan of arrangement (Panuco project, Sinaloa).  ON SOCIAL RESPONSIBILITY, Torex signed an agreement to build a solar plant at its Morelos property.

ON MEXICO ISSUES

  • The Ministry of Economy issued an informative note to correct what President López Obrador said about the expansion of the operations of the mining company El Boleo that operates in Baja California Sur. The mining and metallurgical company is seeking an expansion in the surface of its operations and not a new concession as stated by the president. In July 2019, El Boleo requested an expansion of its environmental impact statement, in which it requested an expansion of its mine by 446 hectares contiguous to its current operation. They indicated that this is because the life of the main mine is running out and its mineral reserves are in this adjoining land. The statement indicates that the mining project began construction in December 2010, with an investment of USD $1,717M, and began production in 2015. The company produces copper, cobalt, zinc and manganese. Currently, the mining company employs 1,282 direct jobs (836 unionized and 446 trusted).
  • Fernando Alanís, president of the Mining Chamber of Mexico (Camimex), stated that the mining industry in Mexico paid MXP $30,374M in taxes during 2020. He also highlighted that those that refer to the fact that the industry pays little are myths, as he highlighted that around 10.6% of the Gross Domestic Product generated by the industry is destined to the payment of taxes, higher than the 7.6% of the manufacturing industry, or the 6.1% of the electricity sector. Fernando Alanis detailed that of the total taxes paid, MXP $24,205M are for Income Tax (ISR), while there are MXP $2,576M in surface rights and MXP $3,593M in new rights.
  • The Mining Chamber of Mexico (Camimex) stressed that mining is a tractor industry that, in addition to boosting the regional economy, supports the development of other economic activities. It drives construction with average annual investments of USD $5B a year. The same occurs with the transport of materials, by promoting the movement of 8.7M tons per year that travel 100.2million kilometers on the roads (78%) and railways (22%) of Mexico. It also boosts port activity, with the export and import of 474M tonnes of materials per year. In total, the transportation costs of mining companies in Mexico total USD $245M per year. Through the mining clusters (Zacatecas, Sonora, Chihuahua, Guerrero and Sinaloa) a local supply has been developed that amounts to 9,700 national supplier companies, 90% of which are small and medium-sized enterprises (SMEs). For Mexico, the mining industry is an outstanding generator of income, contributing 8.3% to the industrial GDP and 2.5% to the national GDP. It is also a large generator of jobs, with more than 379,000 direct jobs and almost 2 million indirect jobs.
  • The Mexican mining industry called on the environmental authorities to hold a dialogue to understand the reasons why the permits are being stopped and to work together to unlock authorizations for Environmental Impact Manifestations (MIAs) that are being held at the Ministry of the Environment and Natural Resources which have stopped several mining projects in the country. Mining in Mexico has a robust environmental legislation that is permanently addressed, among which the General Law of Equilibrium and the Environmental Protection, as well as seven Official Mexican Standards and the general regulation that exists for activity in protected natural areas in Mexico, among others.
  • Representatives of the Mexican Mining industry asked the federal government to reactivate mineral concessions to increase investments in the sector. No new mining concessions have been granted in the country since 2019 and the effects of this were reflected in a lower Foreign Direct Investment in the sector.

ON EXPLORATION

  • One World Lithium Inc., commenced the DDH-3 drilling program at its Salar del Diablo project in Baja California. DDH-3 is located 50Km south of DDH-2 and depending on results, the company may drill more diamond drill holes in the immediate area.
  • Alamos Gold Inc., and its partner Aloro Mining Corp., commenced an initial drilling program at Los Venados project at the Mulatos mining district in Sonora. The initial drilling program will be focused on testing high sulphidation gold mineralization near the Mulatos open pit as well as on low sulphidation gold mineralization to the north where some high grade veins have been identified.
  • Silver Spruce Resources Inc., and its partner Colibri Resource Corporation, received the approved environmental permit from SEMARNAT to drill its El Mezquite project in Sonora. The phase 1 will consists of 2,000m. The drill permit was granted for 14 drill pads over the targets in the northern area of the concession. 
  • Colibri Resource Corporation released trenching sampling results from its flagship Evelyn project in Sonora. Highlights include four high grade samples from El Sahuaro target area with results of 44.9 g/t Au and 21 g/ Ag; 8.24 g/t Au and 8 g/t Ag, 23.3 g/t Au and 16 g/t Ag; and 39.6 g/t Au and 23 g/t Ag.
  • Mammoth Resources Corp., reported results from an additional 2km 3D modeling IP/Mag survey conducted at its Tenoriba project in Chihuahua.  The geophysical survey defines a strong correlation between anomalous Au values found from soil, chips, and channel samples, as well as Au values found in numerous diamond holes, extending these coincident features over what now totals 2.4Km trend of a larger 6km trend of surface  Au-Ag mineralization at Tenoriba project.
  • Kootenay Silver Inc., provided an update on the current drilling program conducted at its Copalito project in Sinaloa. It has completed 1,600m of the planned 3,500m over 19 shallow drill holes. Highlights include hole BDH-20-004 collared at 5 Senores Vein with 0.28 g/t Au and 1,297 g/t Ag (1,323 g/t AgEq) over 3.2m, including 0.14 g/t Au and 2,830 g/t Ag (2,843 g/t AgEq) over 1m; hole BDH-20-15 collared at Pilar Vein with 0.48 g/t Au, 40 g/t Ag, and 1.2% Pb+Zn (111 g/t AgEq) over 7m, including 2.28 g/t Au, 51 g/t Ag, and 6.2% Pb+Zn (394 g/t AgEq) over 1.2m; hole BDH-20-33 collared at Pilar Vein with 0.7 g/t Au, 101 g/t Ag, and 2.3% Pb+Zn (215 g/t AgEq) over 2.7m, including 7.05 g/t Au, 59 g/t Ag, and 13.5% Pb+Zn (1.210 g/t AgEq) over 0.2m; and hole BDH-20-040 collared at 5 Senores Vein with 6.65 g/t Au, 335 g/t Ag, and 2.6% Pb+Zn (933 g/t AgEq) over 2.25m, including 16.95 g/t Au, 369 g/t Ag, and 3.7% Pb+Zn (1,813 g/t AgEq) over 0.51m, and 2.09 g/t Au, 124 g/t Ag, and 0.8% Pb+Zn (311 g/t AgEq) over 9.05m. The Program has focused primarily on the 5 Senores vein, with drilling now stepping out to test the Agua and Chiva Veins.
  • Mithril Resources Inc., informed on the exploration activities carried out during Q1, 2021 at its Copalquin project in Durango. The company is focused on delivering maiden JORC Au-Ag resource for El Refugio target in H2, 2021, where hole CDH-050 intersected 62 g/t Au and 445 g/t Ag over 4.17m. The drill plan for the next quarter is to drill test deeper part of the target. At La Soledad target, hole CDH-054 encountered 10.36 g/t Au and 81 g/t Ag over 4.88m, extending the mineralization further to the west and down dip. The company also informed that it has completed the soil sampling program within El Cometa and Reyes project areas.
  • Advance Gold Corp., announced drilling results from its Tabasquena project in Zacatecas. Hole AGT-23 intersected two zones, one of 0.63 g/t Au, 20 g/t Ag, 3.5% Pb,  and 8% Zn over 2m, and a second zone of 0.04 g/t Au, 6 g/t Ag, 0.18% Pb, and 1.1% Zn over 0.55m. Advance has drilled 23 holes to date and has outlined a 2,500m by 500m wide mineralized corridor and plans to carry out more mapping and geophysics to find the feeder system at  depth responsible for this widespread mineralization.
  • Zacatecas Silver Corp., reported that it has completed first pass geological and structural mapping, and sampling of the San Gil breccia Zone, located 2km southwest of the Veta Grande vein within its Zacatecas Silver project, Zacatecas. The company outlined a north-south trending zone of ferruginous breccia averaging 20-40m wide, over a strike length of at least 800m with strong anomalous values of Ag, Au, Zn, and As, mainly in the northern segment. The company is planning a drilling program since over 600m of the northern segment of this breccia remains untested by previous drilling.
  • GoGold Resources Inc., released results from eight diamond holes collared at its Los Ricos North project in Jalisco. Significant mineralized drill intervals were encountered at hole LRGCS-21-016 with 0.69 g/t Au and 140 g/t Ag (2.55 g/t AuEq or 191 g/t AgEq) over 23.4m, including 4.94 g/t Au and 820 g/t Ag (15.87 g/t AuEq or 1,191 g/t AgEq) over 1m, and a second interval of 0.69 g/t Au and 151 g/t Ag (2.7 g/t AuEq or 155 g/t AgEq) over 15m, including 3.7 g/t Au and 797 g/t Ag (14.33 g/t AuEq or 1,075 g/t AgEq) over 2.2m; hole LRGCS-21-022 with 0.32 g/t Au and 115 g/t Ag (1.86 g/t AuEq or 140 g/t AgEq) over 14.9m, including 1.4 g/t Au and 664 g/t Ag (10.24 g/t AuEq or 768 g/t AgEq) over 2m; LRGCS-21-024 with 0.44 g/t Au and 116 g/t Ag (2 g/t AuEq or 150 g/t AgEq) over 21m, including 0.77 g/t Au and 211 g/t Ag (3.58 g/t AuEq or 268 g/t AgEq) over 9.3m, including 1.66 g/t Au and 392 g/t Ag (6.88 g/t AuEq or 516 g/t AgEq) over 1.7m, and a second interval of 0.37 g/t Au and 115 g/t Ag (1.91 g/t AuEq or 143 g/t AgEq) over 12m, including 1.11 g/t Au and 355 g/t Ag (5.85 g/t AuEq or 439 g/t AgEq) over 3.2m; and hole LRGCS-21-025 with 1.4 g/t Au and 201 g/t Ag (4.08 g/t AuEq or 306 g/t AgEq) over 16.8m, including 8.28 g/t Au and 700 g/t Ag (17.6 g/t AuEq or 1,320 g/t AgEq) over 1.5m. These drill results extended mineralization at Casados deposit.

ON MINING

  • Golden Minerals Company reported Q1, 2021 production results from its Rodeo mine in Durango. The company processed 18,791 tonnes of 3 g/t Au and 14 g/t Ag with metallurgical recoveries of 84.3% and 86.6% respectively to produce 1,390 Oz Au and 11,289 Oz Ag. It also announced its full year 2021 production guidance in which it expects to process between 125K-135K tonnes to produce 12K-14K Oz Au, and 25K-30K Oz Ag.
  • Gold Resource Corporation announced Q1, 2021 preliminary production results from its Oaxaca Mining Unit in Oaxaca. The company produced 5,019 Oz Au, 253,061 Oz Ag, 855.7K Lb Cu, 2.6M Lb Pb, and 7M Lb Zn.
  • McEwen Mining Inc., reported the production of 1,300 Oz AuEq (GEOs) from residual leaching at El Gallo mine in Sinaloa during the first quarter of 2021. 

ON FINANCING

  • Colibri Resource Corporation granted 1.9M incentive stock options to officers, directors, and consultants. The options have a term of five years at an exercise price of $0.10 per share (Evelyn project, Sonora). 
  • Empress Royalty Corp., granted 8.9M stock options to directors, officers, consultants, and employees. The options are exercisable for up to five years at a price of $0.5 per share and will be vested for a period of three years. (Pinos project, Zacatecas).
  • Pantera Silver Corp., applied to trade on the OTCQB Venture Market operated by the OTC Markets Group Inc. in New York. The Company’s shares will continue to trade on the TSX Venture Exchange under the symbol “PNTR” (The Nuevo Taxco Silver project, Guerrero).  
  • Sonoro Gold Corp., closed its oversubscribed non-brokered private placement for gross proceeds of $3,111.045. Net proceeds will be used to fund ongoing development plans at its Cerro Caliche project, including completion of a metallurgical testing, preparation of a NI 43-101 resource update and a PEA, as well as for property maintenance payments, and  for corporate and general administrative expenses.

ON RESOURCES AND DEVELOPMENT

  • Discovery Silver Corp., presented results from 13 diamond holes collared at its Cordero project in Chihuahua. Significant mineralized  intercepts were encountered in hole C20-405 with 65 g/t Ag, 0.05 g/t Au, 1.2% Pb, and 1.3% Zn (165 g/t AgEq) over 128.2m, including 109 g/t Ag, 0.06 g/t Au, 2% Pb, and 1.9% Zn (263 g/t AgEq) over 26.1m; hole C21-414 with 37 g/t Ag, 0.04 g/t Au, 0.8% Pb, and 1% Zn (110 g/t AgEq) over 110m, including 65 g/t Ag, 0.05 g/t Au, 1.6% Pb, and 1.4% Zn (184 g/t AgEq) over 51.8m; and hole C20-407 with 78 g/t Ag, 0.08 g/t Au, 1.3% Pb, and 3.6% Zn (279 g/t AgEq) over 27.4m. The results from this program will be incorporated in a new resource estimate and revamped PEA in the second half of the year.
  • Excellon Resources Inc., reported underground expansion and exploration drilling results from the Guadalupe North, 623, NE-1 and NE-1S Mantos at its Platosa mine in Durango. Highlights include hole EX21UG525 with 618 g/t Ag, 10.1% Pb, and 12% Zn (1,293 g/t AgEq) over 6.5m; hole EX21UG564 with 688 g/t Ag, 14.5% Pb, and 14.9% Zn (1,571 g/t AgEq) over 4.6m; and hole EX20UG522A, with 359 g/t Ag, 4.9% Pb, and 15.9% Zn (1,031 g/t AgEq) over 4.6m, including 573 g/t Ag, 8.6% Pb, and 21.5% Zn (1,531 g/t AgEq) over 1.3m. “Drilling continues to outline and expand mineralization within and around the Platosa deposit with new opportunities identified in the historically-mined Guadalupe North Manto”.
  • Sierra Metals Inc., announced an investment of USD $28M for the construction of an iron ore processing plant expected to produce approximately 500K tonnes per year of magnetite concentrate at its Bolivar mine in Chihuahua. Engineering and test work of the final process is currently underway, and construction of the processing plant is expected to commence this June and will take approximately six months to complete.
  • Silver Tiger Metals Inc., released high-grade drilling results from its El Tigre project in Sonora. Significant high-grade mineralization was encountered in recent drilling of the Sooy vein in hole ET-21-219 with 0.29 g/t Au, 288 g/t Ag, 0.05% Cu, 0.1% Pb, and 0.2% Zn (325 g/t AgEq) over 11.8m, including 0.49 g/t Au, 4,375 g/t Ag, 0.88% Cu, 2% Pb,  and 3.5% Zn (4,668 g/t AgEq) over 0.5m; hole ET-21-217 with 0.08 g/t Au, 210 g/t Ag, 0.04% Cu, 0.03% Pb, and 0.01% Zn (221 g/t AgEq) over 7.3m, including 0.66 g/t Au, 2,595 g/t Ag, 0.41% Cu, 0.3% Pb, and 0.05% Zn (2,694 g/t AgEq) over 0.5m; hole ET-21-215 with 0.26 g/t Au, 167 g/t Ag, 0.15% Cu, and 0.4% Pb (211 g/t AgEq) over 10.1m, including 0.39 g/t Au, 961 g/t Ag, 0.78% Cu, and 1.8% Pb (1,111 g/t AgEq) over 1.1m; and hole ET-21-216 with 0.08 g/t Au, 239 g/t Ag, 0.03% Cu, 0.06% Pb, and 0.3% Zn (260 g/t AgEq) over 3.5m, including 0.24 g/t Au, 1,608 g/t Ag, 0.19% Cu, 0.3% Pb, and 2% Zn (1,721 g/t AgEq) over 0.6m. Step out drilling to the south on the Sooy Vein continues to deliver consistent high grade silver results.

ON DEALS AND CORPORATE ISSUES

  • Empress Royalty Corp., appointed a new member to its Board of Directors, and two members as Strategic and Technical Advisors (Pinos project, Zacatecas).
  • Golden Goliath Resources Ltd., held its annual general meeting of shareholders (San Timoteo property, Chihuahua).
  • Goldgroup Mining Inc., provided a legal update on its dispute with DynaResource regards the San Jose de Gracia property in Sinaloa. Goldgroup announced that the Tenth Circuit Court of Appeals rejected the appeal lodged by Texas-based DynaResource Inc., to vacate the Arbitral Award, which had found that DynaUSA had improperly diluted the Company’s interest in the San Jose de Gracia Mexican mining project, which Goldgroup had earned into pursuant to an option agreement between the Company and DynaUSA. The Circuit Court’s opinion clarifies several misleading facts previously presented in various news releases issued by DynaUSA.
  • Inomin Mines Inc., announced the hiring of two key members for its Mexican exploration program:  a community relationship representative and a senior exploration geologist (La Gitana project, Oaxaca).
  • Masivo Silver Corp., announced it is moving forward to sign a definitive agreement on several mineralized mining concessions comprising La Santa Madre project in Sinaloa. Mineralization identified by Masivo at La Santa Madre project consists of at least six parallel NE Cu-Au-Ag quartz epithermal veins varying from 3-7 m with lengths varying from 600-1,200m. Masivo has also signed a letter of interest to access 3,000 hectares of private land where part of these mining claims are located, with the right to progress to an agreement for 8,000 hectares of this private land.
  • Ridgestone Mining Inc., appointed Dante E Aguilar as its Mexican Country Manager (Rebeico project, Sonora).
  • Santacruz Silver Mining ltd., announced that the acquisition of the Zimapan mine assets from Minera Cedros, S.A.de C.V. together with the USD $17.6M loan facility from Trafigura Mexico, S.A. de C.V., are now expected to close on or about April 23, 2021.
  • Silver Bull Resources Inc., presented results from its annual general meeting of shareholders (Sierra Mojada project, Coahuila).  
  • Vizsla Silver Corp., announced the spinout of Vizsla Copper Corp., through a statutory plan of arrangement. Vizsla Silver will continue to advance its Panuco Copala silver-gold project in Mexico while Vizsla Copper will focus on the assets in BC, Canada. 

ON SOCIAL RESPONSIBILITY

  • Torex Gold Resources Inc., signed an agreement to build a new 8.5 megawatt solar plant at its Morelos property, which include El Limon Guajes mine and Media Luna project in Guerrero state.  The new plant is expected to reduce Scope 2 greenhouse gas (“GHG”) emissions by up to 8.6% using 2019 as the baseline year. In addition, it will bring benefits to the local communities since this new solar plant will create new job opportunities for daily operation and maintenance.

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, mesothermal sheeted quartz veins in an orogenic gold prospect in Sonora, Mexico.  Photo by Miguel A Heredia.

The Mining and Exploration News in Mexico: Highlights on the Second Week of April, 2021.

Magnetite-rich Fe skarn manto

By Miguel A Heredia

During the 14th week of the year (April 05th to April 11th, 2021), at least 35 press releases were announced by companies working in Mexico and 4 news published by the media, with nine informing on exploration results, eight disclosing deals and corporate issues, seven announcing financial issues, six reporting on resources and development, six communicating production and financial results, two discussing social issues, and one commenting on Mexican issues.  ON MEXICO ISSUES, Compañía Minera Cuzcatlán (Fortuna Silver) declared that it pays taxes and reiterated its attachment to the government mechanisms that drive Mexico’s socio-economic development (San Jose mine, Oaxaca). ON EXPLORATION, In Baja California, One World Lithium announced that a drill crew will be mobilizing to its Salar del Diablo project in Baja California, to drill a third diamond drill hole. In Sonora, Colibri informed that it will commence a 3D IP survey at its Evelyn project, Heliostar released first pass sampling and mapping results from its Cumaro project, Ridgestone announced encouraging results from geophysical surveys and follow-up work on its Rebeico project, and Silver Tiger reported drill results in the Benjamin vein zone at its El Tigre project. In Sinaloa, Vizsla provided results from eighteen holes collared along the Napoleon Vein corridor at its Panuco project. In Zacatecas, Alien reported sampling results from dumps/floats at its San Celso property, and Zacatecas Silver completed geological and structural mapping at its El Cristo project.  In San Luis Potosi, Advance Gold started a drilling program at its Saldivar lithium salar project. ON MINING, Endeavor reported Q1, 2021 production results from its Mexican mine operations. GoGold presented Q1, 2021 production and financial results from its Parral Tailings project in Chihuahua. Magna Gold reported year end 2020 financial results from its San Francisco mine in Sonora, and provided production guidance for 2021. Mexus Gold announced its plans to blast at its Santa Elena mine in Sonora. Telson reported Q1, 2021 production results from its Campo Morado mine in Guerrero. Torex presented Q1, 2021 production and financial results from its El Limon-Guajes Mine Complex in Guerrero.  ON  FINANCING, Aura Minerals announced a clarification of its payments of dividends (Aranzazu mine, Zacatecas). Canuc granted 6M incentive stock options to officers, directors, employees, and consultants (San Javier project, Sonora). Capitan Mining announced a non-brokered private placement for gross proceeds of CAD $3.2M (Peñoles property, Durango). GR Silver entered into a bought deal private placement financing agreement for gross proceeds of $ 8M (Plomosas project, Sinaloa). Santacruz announced a private placement for gross proceeds of up to CAD $14.1M (Zimapan mine, Hidalgo). Silver Spruce granted 759K stock options to its CEO (El Mezquite project, Sonora).  Tarachi Gold commenced to trade on the OTCQB Venture Market under the ticker symbol “TRGGF” (Magistral Mill and Tailings project, Durango).  ON RESOURCES AND DEVELOPMENT, Almadex announced its intention to drill at least three of its Mexican mining properties in 2021, and discussed plans for El Cobre and Ixtaca properties located in Veracruz and Puebla respectively. Consolidated Zinc reported that mill and flotation circuits commissioning commenced over Easter at its Plomosas mine in Chihuahua. Prime released drill results from el Zapote South, Noche Buena, and San Miguel East deposits at its Los Reyes project in Sinaloa. Sonoro reported results from 12 RC holes drilled at its flagship property Cerro Caliche in Sonora. VanGold filed a PEA for combined El Pinguico-El Cubo projects in Guanajuato. ON DEALS AND CORPORATE ISSUES, Discovery Metals announced name change to Discovery Silver (Cordero project, Chihuahua).  Equinox completed the acquisition of Premier Gold and the spin out of i-80 Gold Corp. (Los Filos mine, Guerrero and Mercedes mine, Sonora). Gatos Silver appointed Rodrigo Monroy as General Counsel effective April 1st, 2021 (Los Gatos mine, Chihuahua). Minaurum engaged Digital Marketing Firm and granted 3,825,000 common share stock options to Directors, Officers and Consultants (Alamo Silver project, Sonora). Minera Autlán announced the appointment of Pedro Rivero González as its General Management of the company as of April 5, 2021 (Molango mine, Hidalgo). Santacruz announced that the acquisition of the Zimapan assets is now expected to close on or before April 16, 2021. Tarachi Gold appointed a new member to its Board of Directors and announced the change of Auditor (Magistral Mill and tailings project, Durango). Torex announced that it received a key environmental permit for its Media Luna project in Guerrero.  ON SOCIAL RESPONSIBILITY, Arcelor Mittal delivered a donation of MXP $140K to the Red Cross Delegation of Lázaro Cárdenas in Michoacan. Fresnillo plc., supported workshop members of the El Obligado Community in Fresnillo, Zacatecas who make face masks for the population of nearby communities.

ON MEXICO ISSUES

  • Compañía Minera Cuzcatlán (Fortuna Silver Mines Inc.) declared that it has complied in due time and form with more than MXP $600M for the total federal taxes caused, corresponding to the 2020 annual fiscal year. The payment from an effective tax rate to the mining sector of 45%is one more sample strict adherence to legality and government mechanisms that promote the socio-economic development of the country (San Jose mine, Oaxaca).

ON EXPLORATION

  • One World Lithium Inc., announced that a drill crew will be mobilizing to its Salar del Diablo project in Baja California, to drill a third diamond drill hole. DDH-3 will be located approximately 50Km to the south of DDH-2.
  • Colibri Resource Corporation, informed that it will commence a 3D IP survey at its Evelyn project in Sonora. The 3D IP survey will be focused on the Sahuaro and Cerro Rojo targets and will cover an area of approximately 6 square km. The Company is planning a drill program to test currently defined mineralized trends and structures, to evaluate the emerging geological and structural model for the property, and to test results of the IP survey.
  • Heliostar Metals Limited released first pass sampling and mapping results from its Cumaro project in northern Sonora. Heliostar identified a silicified structure with pyrite and returned 1m channel sample grading 390 g/t Ag, and remains open to expand. Additionally, eleven channel and rock samples returned values >1 g/t Ag in a coherent anomaly that cover an area of 500m by 600m, being this area the extension of the Dos Amigos vein into the eastern block. This mineralization indicates a robust silver endowment and shows the potential for high grades in the eastern block of the El Picacho district.
  • Ridgestone Mining Inc., announced encouraging results from geophysical surveys and follow-up work on its Rebeico project. The IP survey outlined a strong IP high chargeability anomaly of 1,400m north-south and 800m east-west at the south portion of the Alaska vein, at depths of 250 to 300 metres below surface, progressively increasing in width and intensity toward the south.
  • Silver Tiger Metals Inc., reported drill results in the Benjamin vein zone at its El Tigre project in Sonora. Significant drill intersects were encountered in hole ET-21-204 with 140 g/t Ag, 0.12 g/t Au, 0.08% Cu, 3% Pb, and 8.5% Zn (519 g/t AgEq) over 14.2m, including 273 g/t Ag, 0.14 g/t Au. 0.18% Cu, 5.5% Pb, and 17 % Zn (1,013 g/t AgEq) over 5.6m; hole ET-21-206 with 181 g/t Ag, 0.07 g/t Au, 0.05% Cu, 0.6% Pb, and 1.8% Zn (267 g/t AgEq) over 12.3m, including 1,034 g/t Ag, 0.18 g/t Au, 0.29% Cu, 2.7% Pb, and 8.8% Zn (1,443 g/t AgEq) over 2m; and hole ET-20-199 with 222 g/t Ag, 0.05 g/t Au, 0.09% Cu, 0.5% Pb, and 1.7% Zn (305 g/t AgEq) over 7.7m, including 699 g/t Ag, 0.11 g/t Au, 0.2% Cu, 2% Pb, and 7% Zn (1,016 g/t AgEq) over 1.1m.
  • Vizsla Silver Corp., provided results from eighteen holed collared along the Napoleon Vein corridor at its Panuco project in Sinaloa. The company estimated from 54 drill holes, an average vein true width of 4m, a weighted average grade of 155 g/t Ag, 2.74 g/t Au, 0.5% Pb, and 1.3% Zn (441 g/t AgEq), and mineralization extends over 300m in length, 300m  deep, and remains open north, south, and at depth. The best drill intercept was encountered in hole NP-21-80 with 469 g/t Ag, 5.84 g7t Au, 0.5% Pb, and 1.2% Zn (1, 027 g/t AgEq) over a true width (TW) of 4.61m, including 1, 321 g/t Ag, 15.1 g/t Au, 1.3% Pb, and 2.6% Zn (2, 740 g/t AgEq) over a TW of 1.51m.
  • Alien Metals ltd., reported encouraging dump/floats sampling results from its New Andromeda concession adjacent to its San Celso property in Zacatecas. Highlights include 734 g/t Ag, 0.44 g/t Au and 0.6% Zn; 163 g/t Ag, 0.42 g/t Au and 1.9% Zn; 488 g/t Ag; 270 g/t Ag; and 180 g/t Ag and 0.13% Zn. “The samples are all composed of quartz and carbonate dominant vein material with varying amounts of sulphides, hence they are very similar to the mineralization seen in the San Celso vein systems to the north”.  
  • Zacatecas Silver Corp., completed geological and structural mapping at its El Cristo project located immediately to the northwest of the Veta Grande deposit. The Veta Grande vein has reported historical production of over 200 M Oz Ag in the region. The geological and structural mapping identified at least eight veins to date which are associated with a sigmoidal zone of extension that is at least 800 m wide, over a strike length of at least 4 km extending the previous reported strike length of 2.5 to 3.0km. Zacatecas Silver has commenced an extensive soil sampling program to assist with location of veins beneath cover of thin soils. “The cumulative strike length of all veins at El Cristo is at least 12 km long. El Cristo an extremely prospective system with numerous high value targets at vein intersections, splays and flexures. Veins display multiphase and brecciated textures, indicative of multiple mineralizing events. Zacatecas Silver is planning an aggressive rock-chip and channel sampling program to better define the silver-base metal grade distribution of the outcropping veins, to ensure that the highest value targets are drill tested”.
  • Advance Gold Corp., started a drilling program at its Saldivar lithium salar project in San Luis Potosi to test near surface lithium grade distribution of the salar for bulk sampling preparation. The drilling program will be carried out on a grid basis using 100m spacing with holes drilled down to 50m. The company also plans to drill deeper in one of the holes to test the depth to bedrock.

ON MINING

  • Endeavor Silver Corp., reported production results from its Mexican mine operations. The table below shows figures for Q1, 2021 by mine:
  • GoGold Resources Inc., presented Q1, 2021 production and financial results from its Parral Tailings project in Chihuahua. GoGold produced 302.9K Oz Ag, 3,208 Oz Au, and 192.6K Lb Cu (551.2K Oz AgEq), generating free cash flows exceeding USD $5.5Mthis quarter.
  • Magna Gold Corp., reported year end 2020 financial results from its San Francisco mine in Sonora. The company sold 20,235 Oz Au and 9,188 Oz Ag. Magna reported metal revenues of USD $37M, net cash flow provided by operating activities of USD $9.4M, net cash provided by financial activities of USD $9.4M, and income from mining operations of USD $1.9M. “The Company is setting guidance expectations for gold production during 2021 of between 55K to 65K Oz Au. The Company expects to have the San Francisco Mine fully commissioned before the end of Q2 2021”.
  • Mexus Gold US announced its plans to blast at its Santa Elena mine in Sonora. The blasts will produce 10K tonnes of 2.2 g/t Au, and Mexus expects to be producing gold from this material within 30 days of the blast.
  • Telson Mining Corporation reported Q1, 2021 production and financial results from its Campo Morado mine in Guerrero. Telson milled 174.4 K tonnes of 1.1 g/t Au, 116 g/t Ag, 1% Pb, and 3.9% Zn with metallurgical recoveries of 21%, 41%, 27%, and 74% respectively. To produce 11 tons of Zn concentrate and 1.9 tonnes of Pb concentrate. The company reported revenues of $10.04M from Zn concentrates and $1.9M from Pb concentrate for total revenues of $11.9M.
  • Torex Gold Resources Inc., presented Q1, 2021 production results from its El Limon-Guajes Mine Complex in Guerrero.  The company produced 129K Oz Au from an average underground ore mined of 1, 360 tonnes per day and an average open pit ore mined of 15,090 tonnes per day, and an average plant throughput of 12,340 tonnes per day. Torex provided full year production guidance for 2021 of 430K to 470K Oz Au.

ON FINANCING

  • Aura Minerals Inc., announced a clarification with respect to its payments of a dividend of USD $0.38 per common share, as previously announced by the company on March 15, 2021 (Aranzazu mine, Zacatecas).
  • Canuc Resource Corporation, granted 6M incentive stock options to officers, directors, employees, and consultants. 3.5 M of these options will vest immediately. The remaining 2.5 M options will vest 12 months from April 2nd, 2022. The stock options have an exercise price of $0.35 and a three-year term, expiring on April 2nd, 2024 (San Javier project, Sonora).
  • Capitan Mining Inc., announced a non-brokered private placement for net proceeds of CAD $3.2M from 16M common shares at a price of CAD $0.20 per share. Capitan Mining plans to use the net proceeds to advance drilling and work programs at Peñoles property in Durango, as well as for working capital and general corporate expenses.
  • GR Silver Mining Ltd., entered into a bought deal private placement financing agreement for gross proceeds of $ 8M at a price of $0.59 per unit. Net proceeds will be used for working capital and general corporate purposes (Plomosas project, Sinaloa). 
  • Santacruz Silver Mining Ltd., announced a private placement for gross proceeds of up to CAD $14.1M (Zimapan mine, Hidalgo).
  • Silver Spruce Resources Inc., granted 750K stock options to its CEO at an exercise price of $0.05 per share and an expiry date of April1, 2026. The stock options will vest 1/3 on the date of the grant, 1/3 on the first anniversary of the grant and the final 1/3 on the second anniversary of the grant (El Mezquite project, Sonora).   
  • Tarachi Gold Corp., commenced to trade on the OTCQB Venture Market under the ticker symbol “TRGGF” (Magistral Mill and Tailings project, Durango). 

ON RESOURCES AND DEVELOPMENT

  • Almadex Minerals Ltd., announced its intention to drill at least three of its Mexican mining properties in 2021, and discussed plans for El Cobre and Ixtaca properties located in Veracruz and Puebla respectively. At El Cobre, Veracruz, Almadex previously reported  an indicated resource containing 748K Oz Au and 221M Lb Cu (47.2 M tonnes grading 0.49 g/t Au, 0.21% Cu and 1.4  g/t Ag) and an inferred resource containing 860K Oz Au and 254 M Lb Cu (64.2M tonnes grading 0.42 g/t Au, 0.18% Cu and 1.3 g/t Ag).  Almadex looks forward to further developments at this high potential project. At Ixtaca, Puebla, a FS reported a proven and probable reserve containing 1.38M Oz Au and 85.1M Oz Ag (73.1M tonnes grading 0.59 g/t Au and 36.3 g/t Ag). The Ixtaca project is currently in the mine permitting phase, which has taken longer than expected. Almaden has recently noted the exploration potential remaining at the Ixtaca project and the Company looks forward to the results of the Ixtaca exploration programs over the course of 2021.
  • Consolidated Zinc Limited, reported that mill and flotation circuits commissioning commenced over Easter at its Plomosas mine in Chihuahua. It also announced that the tailings dam earthworks is completed, laying of the impervious liner is 70% complete, and the power supply installed, commissioned, and operated.  
  • Prime Mining Corp., released drill results from el Zapote South, Noche Buena, and San Miguel East deposits from its ongoing 15,000m phase 1 drill program at its Los Reyes project in Sinaloa. At El Zapote South deposit, significant mineralized drill intercepts have been encountered at hole 21ZAP-04 with 8.95 g/t Au and 74 g/t Ag over 4.5m; hole 21ZAP-03 with 0.76 g/t Au and 33 g/t Ag over 13m, including 1.66 g/t Au and 41 g/t Ag over 4.6m; and hole 21ZAP-08 with 1.96 g/t Au and 63 g/t Ag over 18.7m, including 2.44 g/t Au and 85 g/t Ag over 7.2m. At Noche Buena deposit, hole 21NB-02 encountered 3.17 g/t Au and 141 g/t Ag over 2.9m within a broader zone of 39m with 0.7 g/t Au and 29 g/t Ag; and hole 21NB-03 with 1.12 g/t Au and 30 g/t Ag over 6m. At San Miguel deposit, hole 2SME-01 intersected 1 g/t Au and 131 g/t Ag over 4.5m. Zapote-South, Noche Buena and San Miguel East deposits are three of eight known deposits that comprise the current mineral resource at Los Reyes property.
  • Sonoro Gold Corp., reported results from 12 RC holes drilled at its flagship property Cerro Caliche in Sonora. Highlights include hole SCR-223 in the north western extension of Buena Suerte zone with 0.6 g/t Au over 74.67m, including three intervals of 1.52m with 3.67 g/t Au; hole SCR-222 in the Buena Vista northwest extension of Japoneses zone with 2.04 g/t Au over 15.24m, including 3.15 g/t Au over 6.1m; hole SCR-227 in the northern extension of Japoneses zone with 1.74 g/t Au over 3.05m, including 2.54 g/t Au over 1.53m; and hole SCR-225 at El Colorado zone with 1.16 g/t Au over 7.62m, including 2.31 g/t Au over 3.05m.
  • VanGold Mining Corp., filed a PEA for combined El Pinguico-El Cubo projects in Guanajuato. Results of the PEA analysis were previously announced in the Company’s news release dated February 16, 2021. The company also announced that it obtained permits for El Pinguico road expansion. New route will lessen impact on the Calderones Community. “This road will become El Pinguico’s major thoroughfare for production, exploration, administration, and for safely purposes. The Company anticipates it will reduce driving time between the destinations from 40 minutes to 10 minutes, significantly reducing costs and wear on vehicles”. 

ON DEALS AND CORPORATE ISSUES

  • Discovery Metals Corp., announced name change to Discovery Silver Corp. The company´s common shares will commence trading under the TSX Venture Exchange under its current ticker symbol “DSV” and on the OTCQX where its ticker symbol will change from “DSVMF” to “DSVSF” from April 14, 2021, pending final regulatory approvals from the TSXV and FINRA (Cordero project, Chihuahua).
  • Equinox Gold Corp., completed the acquisition of Premier Gold Mines Limited and the spin out of i-80 Gold Corp. (Los Filos mine, Guerrero and Mercedes mine, Sonora).
  • Gatos Silver Inc., appointed Rodrigo Monroy as General Counsel effective April 1st, 2021, and strengthens its executive management team (Los Gatos mine, Chihuahua).
  • Minaurum Gold Inc., engaged Digital Marketing Firm to assist with online communication to the company, with the goal of increasing market awareness. Minaurum will pay to the Digital Marketing Firm a fee of CAD $64K for six months. The company also granted 3,825,000 common share stock options to Directors, Officers and Consultants. The options are exercisable at a price of $0.52 from a period of ten years from issue date (Alamo Silver project, Sonora).
  • Compañía Minera Autlán, S.A.B. de C.V., reported that, with the prior favorable opinion of the Corporate Practices Committee and approval of its Board of Directors, in a session of February 24, 2021, it was resolved that Pedro Rivero González will assume the General Management of the company as of April 5, 2021 (Molango mine, Hidalgo).
  • Santacruz Silver Mining Ltd., announced that the acquisition of the Zimapan assets, together with the USD $17.6 M loan facility from Trafigura Mexico, S.A. de C.V., are now expected to close on or before April 16, 2021.
  • Tarachi Gold Corp., appointed a new member to its Board of Directors and announced the change of Auditor (Magistral Mill and tailings project, Durango).
  • Torex Gold Resources Inc., announced that it received from Mexico’s Secretariat of Environment and Natural Resources (“SEMARNAT”) the MIA, a key environmental permit for its Media Luna project in Guerrero. The MIA allows Torex to execute construction activities to access its Media Luna deposit in Guerrero.

ON SOCIAL RESPONSIBILITY

  • Arcelor Mittal México SA de CV, delivered a donation of MXP $140K in the framework of its 2021 annual collection to the Red Cross Delegation of Lázaro Cárdenas in Michoacán. ”Arcelor Mittal has made annual donations without interruption. since 2008 to the delegational Red Cross, in addition to collaborating with the worthy institution in different ways: through donations in its annual collections, in kind when necessary, such as the provision of equipment and various supplies, the delivery of an ambulance in 2016 and the repair of three ambulances last year, in addition to the support with facilities for their training”.
  • Fresnillo plc., supported workshop members of the El Obligado Community in Fresnillo, Zacatecas who make face masks for the population of nearby communities. The workshop workers are also suppliers of face masks for the Directorate of Engineering and Construction Department of Industrias Peñoles (DIC). To date, they have sold around 3,000 masks, the same that meet the specifications dictated by the World Health Organization.

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 magnetite-rich Fe skarn manto in a prospect in Chihuahua, Mexico.  Photo by Miguel A Heredia.

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

Fault slickenside

By Miguel A Heredia

During the fifty one week of the year (December 14th to December 20th, 2020), at least 22 press releases were announced by companies working in Mexico and 4 news published by the media, with seven disclosing deals and corporate issues, five communicating production and financial results, four informing on exploration results, three announcing financial rounds, two discussing social issues, two reporting on resources and development of their mine operations, and two  commenting on Mexican issues.  ON MEXICO ISSUES, Great Panther restarted operations at its Topia mine in Durango, after experiencing contagious of COVID-19 among the workforce. The Chihuahua Mining Cluster appointed its new board president. The Association of Miners of Sonora (AMSAC) decided to extend the current board for one year.  ON EXPLORATION, In Baja California Norte, Comet announced that a drilling program will commence in 2021 at its Santa Teresa project. In Sonora, Silver Viper released drill results from its El Rubi project. In Chihuahua, Monarca Minerals announced its intention to conduct an initial 5,000m of drilling at its San Jose project. In Sinaloa, Vizsla released surface and underground sampling results from its Panuco project. ON MINING, GoGold presented Q3, 2020 production and financial results from its Parral Tailing operation in Chihuahua. Prime reported Q2, 2020 financial results. ON FINANCING, Silver Dollar granted stock options to its directors, officers, and consultants (La Joya property, Durango). Gatos Silver provided an update and announced inclusion in the Russell 2000 Index, as well as in the VanEck Vectors Junior Gold Miners ETF (GDXJ) (Los Gatos, Chihuahua).  ON RESOURCES AND DEVELOPMENT, Southern Silver reported drill results from its Cerro Las Minitas property in Durango. Capitan Mining released RC drill results from three holes collared at its Peñoles project in Durango. Gatos Silver commenced a 58,000m infill and extensional drilling program at its Cerro Los Gatos deposit in Chihuahua. GR reported drill results from 2 holes collared at its Plomosas property in Sinaloa. Fabled started an 8,000m drilling program at its Santa Maria project in Chihuahua. ON DEALS AND CORPORATE ISSUES, Aztec Minerals and Kootenay entered into a JV option agreement for the Cervantes project in Sonora. Defiance acquired option to purchase royalty at the Tepal property in Michoacan. Pan American appointed a new member to its board of directors (La Colorada, Zacatecas). Equinox announced friendly acquisition of Premier Gold (Mercedes Mine, Sonora). Canuc appointed a new special adviser to the company (San Javier property, Sonora). Santacruz reached an agreement with Peñoles to extend the Zimapan Mine lease until June 30, 2021.   ON SOCIAL RESPONSIBILITY, Minera Media Luna, a subsidiary of Torex Gold invested MXP $1.8M to improve the Nuevo Balsas Health Center. Grupo Mexico donated eight thousand plants in Colima.

ON MEXICO ISSUES

  • Great Panther Mining Limited, restarted operations at its Topia mine in Durango, after have experienced contagious of COVID-19 among the workforce. Mining resumed on December 17 and the plant is expected to begin processing ore on December 21.
  • The Chihuahua Mining Cluster appointed its new board president. This event was joined by the special presence of the state leadership of the Association of Mining Engineers, Metallurgists and Geologists of Mexico; the direction of the Mining Chamber of Mexico; guild suppliers, as well as the new director of mining for the state government.
  • The Association of Miners of Sonora (AMSAC) decided to extend the current board for one year as a result of the pandemic that paralyzed multiple activities in the sector.

ON EXPLORATION

  • Comet Resources Limited announced that a drilling program will commence in 2021 at its Santa Teresa project in Baja California Norte. Comet has identified sources of water for the drilling program and has improved roads to the drill sites. It is also in the process of getting the drill permit to commence the drilling in 2021. In addition, Comet has engaged a local geological consultancy to assist them with all geological programs, including permitting for drilling.
  • Silver Viper Minerals Corp., released drill results from its El Rubi project in Sonora. The most significant drill interval was encountered in hole LV20-283 with 0.72 g/t Au and 50 g/t Ag over a true width (TW) of 13.89m, including several intersection as 2.55 g/t Au and 226 g/t Ag over a TW of 0.64m, 3.26 g/t Au and 215 g/t Ag over a TW of 1.92m, 1.58 g/t Au and 108 g/t Ag over a TW of 3.84m, 4.38 g/t Au and 282 g/t Ag over a TW of 0.64m, 33.8 g/t Au and 67 g/t Ag over a TW of 1.6m, and 77.9 g/t Au and 133 g/t Ag over a TW of 1m. Silver Viper informed also that it has conducted initial bottle roll leach tests on four 500 g composites of mineralized material from El Rubi with extracting recoveries of 90-95% for Au and 62-76% for Ag. The company plans to conduct more detail test work.
  • Monarca Minerals Inc., announced its intention to conduct an initial 5,000m of drilling at its San Jose project in Chihuahua. Monarca plans to drill 10 holes to test some IP targets to depths of up to 500m. Monarca is looking to sign a surface agreement with the local Ejido as well as to apply to obtain the drilling permit.
  • Vizsla Resources Corp., released surface and underground sampling results from its Panuco project. Sampling highlights include 11.55 g/t Au and 2,091 g/t Ag (3,042 g/t AgEq) over a true width (TW) of 1m, and 6.7 g/t Au and 723 g/t Ag (1,304 g/t AgEq) over a TW of 1.2m at Agua Zarca target; 2.23 g/t Au and 264 g/t Ag (456 g/t AgEq) over a TW of 2.9 at El Batel target; 0.77 g/t Au and 315 g/t Ag (368 g/t AgEq) over a TW of 4.1m, including 1.28 g/t Au and 892 g/t Ag (958 g/t AgEq) over a TW of 1.3m at La Bomba target; and 0.67 g/t Au and 225 g/t Ag (275 g/t AgEq) over a TW of 10.5m, including 1.34 g/t Au and 371 g/t Ag (473 g/t AgEq) over a TW of 4m at Huaco target. These results will help to generate drill targets for 2021.

ON MINING

  • GoGold Resources Inc., presented Q3, 2020 production and financial results from its Parral Tailing operation in Chihuahua. The company produced 605,723 Oz AgEq at a cash and AISC of USD $11.97 and USD $14.31 per Oz AgEq respectively. GoGold reported revenue of USD $39.5M, a net income of USD $43.1M, and cash flow from operations before working capital changes of  USD $5.5M, including free cash flow from Parral of USD $6.5M.
  • Prime Mining Corp., announced Q2, 2020 financial results.   The company reported a net loss of CAD $1,656,466, cash, cash equivalent and short-term investment of CAD $7,678,959, total current liabilities of CAD $655,545, total liabilities of CAD $1,668,247, and total shareholder´s equity of CAD $19,921,788 (Los Reyes project, Sinaloa).

ON FINANCING

  • Silver Dollar Resources Inc., granted stock options to its directors, officers, and consultants to purchase up to 2.55M shares of the company. Shares are exercisable at $1.75 per share for five years (La Joya property, Durango).
  • Gatos Silver Inc., provided an update and announced inclusion in the Russell 2000 Index small capitalization stocks index, effective December 2021. Gatos recently completed an IPO with gross proceeds of USD $173M resulting in the largest precious metals IPO since 2010 and the largest precious metals equity financing during 2020. The company also announced the inclusion in the VanEck Vectors Junior Gold Miners ETF (GDXJ) (Los Gatos property, Chihuahua). 

ON RESOURCES AND DEVELOPMENT

  • Southern Silver Exploration Corp., reported drill results from Mina La Bocona target area at its Cerro Las Minitas property in Durango. Significant drill intersects were encountered at hole 20CLM-125 with 1.41 g/t Au and 36 g/t Ag (201 g/t AgEq) over a 28.5m, including 5.1 g/t Au and 72 g/t Ag (552 g/t AgEq) over 2.8m, and a deeper intersection of 0.45 g/t Au, 421 g/t Ag, 5.5% Pb, and 1.9% Zn (704 g/t AgEq or 17.9% ZnEq) over 6.1m (true width of 4.0m), including 0.64 g/t Au, 1,420 g/t Ag, 16.8% Pb, and 00.6% Zn (2,012 g/t AgEq or 51% ZnEq) over 0.9m (true width of 0.6m). This drill result is part of a 10,000m, 2020-2021 core drilling program on the Cerro Las Minitas project. Two additional holes have been completed at Mina La Bocona target. Seven holes totaling 2,470 metres have now tested the Mina La Bocona target area with assays still pending from each hole.
  • Capitan Mining Inc., released drill results from three holes collared at its Peñoles project in Durango. Significant drill intercepts were encountered in holes 20-CARC-12 with 0.63 g/t Au over 73.15m, including 0.91 g/t Au over 36.5m; hole 20-CARC-09 with 0.69 g/t Au and 21 g/t Ag over 64.01m, including 1.26 g/t Au over 13.72m; and hole 20-CARC-08 with 0.58 g/t Au over 48.77m, including 0.82 g/t Au and 16 g/t Ag over 28.96m.
  • Gatos Silver Inc., commenced a 58,000m infill and extensional drilling program at its Cerro Los Gatos deposit in Chihuahua. The program is expected to cost USD $6.1M. Drilling has already begun with a program of 27,000m with an expected cost of USD $2.8M and is focused on definition and extension of the Cerro Los Gatos deposit. Completion of the program is anticipated by June 2021. A second program focused on expanding resources throughout the Los Gatos district is planned to initiate in early 2021.
  • GR Silver Mining Ltd., reported drill results from 2 underground holes collared at its Plomosas property in Sinaloa. Hole PLI20-01 intersected 30 g/t Ag, 0.01 g/t Au, 1.3% Pb, and 2.8% Zn (254 g/t AgEq) over a true width (TW) of 16m, including 55 g/t Ag, 0.01 g/t Au, 4% Pb, and 8.3% Zn (424 g/t AgEq) over a TW of 4m; and hole PLI20-02 intersected 18 g/t Ag, 0.3 g/t Au, 1% Pb, and 1.7% Zn (130 g/t AgEq), including 107 g/t Ag, 1.7 g/t Au, 6.6% Pb, 9.6% Zn, and 0.2% Cu (778 g/t AgEq) over a TW of 4.2m. GR also reviewed and validated historical data from holes SD-62 and SD-67, confirming the presence of Au-Cu rich mineralization in other levels of the Plomosas Mine area. Hole SD-62 encountered  31 g/t Ag, 0.12 g/t Au, 0.8% Pb, 1.4% Zn, and 1.3% Cu (200 g/t AgEq) over a TW of 25.3m, while hole SD-63 intersected 115 g/t Ag, 1.04 g/t Au, 11.3% Pb, 5.4% Zn, and 0.7% Cu (800 g/t AgEq) over a TW of 6.1m.
  • Fabled Silver Gold Corp., started an 8,000m drilling program at its Santa Maria project in Chihuahua to test 11 new IP anomalies identified during the first ever geophysical survey conducted at the property. A 3-D IP survey covered the entire property at 50m-line spacing and was 16 blocks in size with penetration to -500m minimum. In addition, 27km of ground magnetic was completed over the property resulting in the creation of several products such as total field, first derivate, reduce to pole, and 3D inversion magnetics.  “Fabled’s management team strongly believes that the Santa Maria Property is an under-explored, high-grade silver-gold project with significant exploration potential to expand mineral resources and identify new discoveries”. 

ON DEALS AND CORPORATE ISSUES

  • Aztec Minerals Corp., and Kootenay Silver Inc., entered into a JV option agreement for the Cervantes project in Sonora. Aztec has already completed its earn-in and exercised its option to acquire a 65% interest in the property. Now Aztec hold 65% interest in the property while Kootenay the remaining 35%. Both parties will keep their interest at Cervantes through share ownership in Aztec Minerals JV Corporation through its wholly owned subsidiary, Minera Azteca Dorado S.A. de C.V.
  • Defiance Silver Corp., acquired option to purchase the 2.5% NSR of the Tepal property in Michoacan from Minera Tepal, over four years for a total consideration of USD $4.85M.
  • Pan American Silver Corp., appointed a new member to its board of directors (La Colorada, Zacatecas).
  • Equinox Gold Corp., announced it has entered into a definitive agreement with Premier Gold Mines Limited to acquire all of the outstanding shares of Premier. Premier will spin-out to its shareholders shares of a newly created US-focused gold production and development company to be called i-80 Gold Corp. On closing of the transaction, existing Equinox Gold and Premier shareholders will own approximately 84% and 16% of Equinox Gold, and Equinox Gold and existing shareholders of Premier will own 30% and 70% of i-80 Gold, respectively, on an issued share basis.
  • Canuc Resources Corporation appointed a new special adviser to the company (San Javier property, Sonora). 
  • Santacruz Silver Mining Ltd., reached an agreement with Minera Cedros S.A.de C.V., a subsidiary of Industrias Peñoles S.A.B. de C.V. to extend the Zimapan Mine lease from December 31, 2020 to June 30, 2021.

ON SOCIAL RESPONSIBILITY

  • Minera Media Luna, a subsidiary of Torex Gold invested MXP $1.8M to improve the Nuevo Balsas Health Center, which will serve close to four thousand inhabitants of communities such as Nuevo Balsas, San Nicolás, La Fundición, Real del Limón, Acalmantlila, Balsas Sur, San Luis and Tomixtlahuacán. This center seeks to provide decent medical care since the areas that are farthest from the municipal capitals are severely affected in their health services due to the conditions of difficult access and remoteness.
  • Grupo Mexico donated eight thousand plants to the City Council and to the  Integral Development of the Family (DIF) of Colima to reforest the public gardens of the rural communities contributing to improve the environment and quality of life of the families of the municipality of Colima.

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

On the picture above, a fault slickenside in a Mn-Fe occurrence in a prospect in Chihuahua, Mexico.  Photo by Miguel A Heredia.

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

phreatic breccia

By Miguel A Heredia

During the eleventh week of the year (March 9th to March 15th, 2020), at least 21 press releases were announced by companies working in Mexico, with four commenting on Mexican issues, three announcing financial rounds, three informing on exploration results, three communicating production and financial results, three disclosing deals and corporate issues, three discussing issues on social responsibility, and two reporting on resources and developments.  ON MEXICO ISSUES, A local Deputy of Durango State celebrated the investment of USD $100M in the mining sector. Michoacán State breaks the mining slowdown cycle, and Fe extraction grows 8% and climbs to second place. A series of Mexican mining projects have changed ownership in recent weeks as Au and Ag prices rise. In the last five years, the female workforce in the mining sector has grown by an average of 14-15%, according to Karen Flores, General Director of the Mining Chamber of Mexico (Camimex). ON EXPLORATION, In Sinaloa, Vizsla reported drilling results from its Panuco project. In Zacatecas, Alien announced its program development for its Mexican projects. In Jalisco, GoGold released drilling results from 11 holes collared at its Los Ricos project. ON MINING, Americas Gold and Silver reported full year 2019 production and financial results (Cosala mine, Sinaloa). Santacruz suspended milling operations at its Veta Grande mine in Zacatecas. Fortuna Silver reported full year 2019 production and financial results from its San Jose mine in Oaxaca. ON FINANCING, Almaden announced a non-brokered private placement for gross proceeds of up to $2M (Ixtaca project, Puebla). SilverCrest announced a bought deal financing for gross proceeds of CAD $75M (Las Chispas project, Sonora). Mexus sold some Au produced at its Santa Elena mine in Sonora.  ON RESOURCES AND DEVELOPMENT, Great Panther updated mineral resource estimate at its Guanajuato Mine Complex in Guanajuato and provided an update on its Topia mine operation in Durango. SilverCrest reported infill drilling results from its Las Chispas project in Sonora. ON DEALS AND CORPORATE ISSUES, Equinox and Leagold completed merger to create premier Americas gold producer (Los Filos, Guerrero). Pan American filed its 2019 audited annual financial statement and annual information form (La Colorada mine, Zacatecas). Premier appointed a new member to its board of Directors (Mercedes mine, Sonora). ON SOCIAL RESPONSIBILITY, Almaden opened a local water reservoir in the community of Zacatepec, nearby its Ixtaca project in Puebla.  Argonaut gave scholarship number 3,000 to a student of La Colorada, Sonora. Minera San Xavier (New Gold Inc.), improves the public lighting system in Cerro de San Pedro, San Luis Potosi.

ON MEXICO ISSUES

  • A local Deputy of Durango State, celebrated the investment of USD $100M in the mining sector. It means greater economic development and especially the generation of a large number of well-paid jobs. For this reason, the Deputy said, it is necessary for the federal government to develop a state mining policy, as it is currently done in Durango that allows recovering the international competitiveness that characterized Mexico during the first decade of this millennium.
  • Michoacan State, breaks the mining slowdown cycle, and Fe extraction grows 8% and climbs to second place. According to the Economic Information Bank, the entity totaled 2.6M tonnes in 2019, which meant an increase of 8% with respect to the 2.4M tonnes reported during 2018.
  • A series of Mexican mining projects, have changed ownership in recent weeks as Au and Ag prices rise. For instance, Magna Gold acquired the San Francisco mine in Sonora from Alio Gold and is evaluating partnership opportunities to advance its suspended Ana Paula project in Guerrero; GR Silver Mining acquired Plomosas in Sinaloa from First Majestic; GoGold recently acquired 5 concessions around its Los Ricos project in Jalisco; and Fresnillo plc exercised an option to acquire the Naranjillo property in Guanajuato from Plata Latina. These latest agreements show that Mexico continues to generate a decent level of interest in mergers and acquisitions.
  • Karen Flores, General Director of the Mining Chamber of Mexico (Camimex), announced that In the last five years, the female workforce in the mining sector has grown by an average of 14-15%. Currently, 60 thousand women work in this industry in the country, which represents 16% of the total of its workers. In 2019, 3,153 new places were generated for them.

ON EXPLORATION

  • Vizsla Resources Corp., reported drilling results from its Panuco project in Sinaloa. Significant interception were encountered in hole AMS-20-06 with 1.25 g/t Au and 264 g/t Ag (364 g/t AgEq) over 3.55m, including 2.54 g/t Au and 474 g/t Ag (677 g/t AgEq) over a width of 1.3m; and hole AMS-20-04 with 2.45 g/t Au, 45 g/t Ag, 1.2% Pb, and 3.0% Zn (404 g/t AgEq) over 2.6m. These drilling results are the first set from an aggressive program of 14,500m that will continue throughout 2020.
  • Alien Metals Limited, announced its program development for its Mexican projects. The company has planned a detail exploration drilling program and has submitted applications for drill permits at its Los Campos and San Celso projects in Zacatecas. At its Donovan 2 Cu-Au VMS target in Zacatecas, it also is planning a ground magnetic survey to generate follow-up work and drill targets.
  • GoGold Resources Inc., released drilling results from eleven holes collared at its Los Ricos project in Jalisco: two at San Juan and nine at the Main area. Significant drill intersections were encountered in hole LRGG-20-106 (San Juan Area) with 1.35 g/t Au and 118 g/t Ag (2.92 g/t AuEq or 219 g/t AgEq) over a width of 21m, including 2.83 g/t Au and 217 g/t Ag and (5.73 g/t Au or 430 g/t AgEq) over a width of 9.5m; hole LRGG-20-102 (Main Area) with 1.05 g/t Au and 156 g/t Ag (3.13 g/t AuEq or 235 g/t AgEq) over a width of 10.7m; and hole LRGG-20-101 (San Juan Area) with 0.54 g/t Au and 116 g/t Ag (2.08 g/t AuEq or 156 g/t AgEq) over a width of 33.8m, including 2.0 g/t Au and 467 g/t Ag (8.22 g/t AuEq or 617 g/t AgEq) over a width of 5m.

ON MINING

  • Americas Gold and Silver Corporation, reported full year 2019 production and financial results. Consolidated results indicate a total ore processed of 701.8K tonnes of 70 g/t Ag, 2.1% Pb, 3.4% Zn to produce 1.16M Oz Ag, 26.2M Lb Pb, and 43.3M Lb Zn, with a cash cost of $4.61 per Oz Ag and AISC of $12.71 per Oz Ag. The company reported revenues of $58.4M and a net loss of $34.2M. The Cosala mine in Sinaloa successfully executed its production plans for the year 2019, increasing mill tonnage to over 1,750 tonnes per day, and increasing production of precious and by-product metals.
  • Santacruz Silver Mining Ltd., suspended milling operations at its Veta Grande mine in Zacatecas for approximately six months to facilitate plant and new tailings storage facility upgrades.
  • Fortuna Silver Mines Inc., reported Q4 and full year 2019 production and financial results from its San Jose mine in Oaxaca. During the period Q4, 2019, it milled 273,066 tonnes of 249 g/t Ag and 1.5 g/t Au, recovering 91% for both metals to produce 2M Oz Ag and 12K Oz Au, at cash cost of $6.8 per Oz AgEq and AISC of $10.5 per Oz AgEq. For the full 2019 year, the company milled 1,068,722 tonnes of 252 g/t Ag and 1.57 g/t Au, recovering 91% for both metals, to produce 7.9M Oz Ag and 48.9K Oz Au, at cash cost of $6.70 per Oz AgEq and AISC of $9.8 per Oz AgEq.

ON FINANCING

  • Almaden Minerals Ltd., announced a proposed non-brokered private placement to raise gross proceeds of up to $2M. Net proceeds will be used for permitting activities related to its Ixtaca project in Puebla, and for general corporate purposes. Closing of the offering is anticipated to be on or about March 26, 2020.
  • SilverCrest Metals Inc., announced a bought deal financing for gross proceeds of CAD $75M. Net proceeds will be used to continue the exploration and development of its Las Chispas project in Sonora and for general working capital and administrative purposes.
  • Mexus Gold US, sold 16.5 out of 125 Oz Au produced at its Santa Elena mine in Sonora, at a price of USD $1,600 per Oz. Additional sales will be occurring shortly.

ON RESOURCES AND DEVELOPMENT

  • Great Panther Mining Limited, updated mineral resource estimate at its Guanajuato Mine Complex in Guanajuato. At Guanajuato mine, measured + indicated resources are 343,736 tonnes of 204 g/t Ag and 1.69 g/t Au to contain 2.25M Oz Ag and 8.7K Oz Au (3.75M Oz AgEq at a grade of 339 g/t AgEq). Inferred resources are 208,608 tonnes of 168 g/t Ag and 2.32 g/t Au to contain 1.13M Oz Ag and 15.6K Oz Au (2.37M Oz AgEq at a grade of 354 g(t AgEq). At San Ignacio mine, measured + indicated resources are 386,417 tonnes of 159 g/t A and 3.03 g/t Au to contain 1.97M Oz Ag and 37.6K Oz Au (4.98M Oz AgEq at a grade of 401 g/t AgEq). Inferred resources are 501,870 tonnes of 149 g/t Ag and 2.69 g/t Au to contain 2.4M Oz Ag and 43.4K Oz Au (5.88M Oz AgEq at a grade of 364 g/t AgEq). In addition, the company reported that it has temporarily ceased tailing deposition at its Topia mine in Durango. Great Panther is in the process of permitting a Phase III of a tailings storage facility (TSF) site. Meanwhile, it is reviewing alternatives to store tailings (permanent or transitionary) until phase III TSF is permitted. The company expects it is obtained in the within the next 3 or 6 months.
  • SilverCrest Metals Inc., reported infill drilling results from its Las Chispas project in Sonora. Highlights include hole UBV19-30 with 81.6 g/t Au and 6,619 g/t Ag (12,740 g/t AgEq) over a true width of 2.1m; hole BV20-22 with 101.45 g/t Au and 5,413 g/t Ag (13,022 g/t AgEq) over a true width of 1.1m; and hole BV20-18 with 45.8 g/t Au and 2,396 g/t Ag (5,831 g/t AgEq) over a true width of 1.6m. The drilling results have nearly doubled the size of the high-grade footprint for the Babi Vista Vein in the Babicanora Area.

ON DEALS AND CORPORATE ISSUES

  • Equinox Gold Corp., and Leagold Mining Corporation, completed merger to become in one of the world´s top gold producing companies. The concurrent USD $670M debt and equity financings associated with the merger have also been completed (Los Filos mine, Guerrero).
  • Pan American Silver Corp., filed its 2019 audited annual financial statement and annual information form (La Colorada mine, Zacatecas).
  • Premier Gold Mines Limited, appointed a new member to its board of Directors (Mercedes mine, Sonora).

ON SOCIAL RESPONSIBILITY

  • Almaden Minerals Ltd., along with the Federal Government Water Authority (CONAGUA), opened a local water reservoir in the community of Zacatepec, nearby its Ixtaca project in Puebla. This water reservoir will be used for irrigation to boost the current harvests of the community.
  • Argonaut Gold Inc., gave the scholarship number 3,000 to a student of la Colorada, Sonora. In this community, the company has maintained an academic scholarship program since 2011. The General Manager of the La Colorada mine assured that the company’s commitment is fulfilled in coherence with the vision of social responsibility where the education of children and young people is a priority.
  • Minera San Xavier (New Gold Inc.), has invested heavily in the infrastructure of the municipality of Cerro de San Pedro, as part of the social actions contemplated in its Comprehensive, Inclusive and Participatory Mine Closure Plan. The company is improving the public lighting system in Cerro de San Pedro, San Luis Potosi, with solar luminaries, which have a positive impact on public safety and tourist activities. These solar luminaries count with great potential for energy savings, reducing electricity consumption and maintenance costs, without compromising the quality of lighting services.

 

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 phreatic breccia in an epithermal hot spring prospect in Guanajuato, Mexico.  Photo by Miguel A Heredia.

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

Mn-Fe/calcite fault-bx in rhyolitic tuffs.

By Miguel A Heredia

During the first week of the year (December 31st to January 05th, 2020), at least 19 press releases were announced by companies working in Mexico, with six announcing financial rounds, three disclosing deals and corporate issues, three commenting on Mexican issues, two communicating production results, two reporting on resources and development of their projects, two discussing issues on social responsibility, and one informing on exploration results.  ON MEXICO ISSUES, La Caridad mine in Sonora, one of the most precious jewels of the Mexican mining. Lithium can turn Mexico into the planet´s rechargeable battery. Mexico announced USD $4.65B in capital expenditure for new mining projects in 2020-2021.  ON EXPLORATION, In Jalisco, GoGold filed a NI 43-101 Technical Report on its Los Ricos project. ON MINING, Telson reported some of the reactivation activities carried out at its Campo Morado mine in Guerrero to bring it back into production by mid January 2020. Newmont Goldcorp provided an outlook for the year 2020 on its Peñasquito mine in Zacatecas. ON FINANCING, Sonoro Metals received proceeds of $875K from the sale to Agnico of the 1% NSR on the Chipriona property in Sonora. First Mexican closed the third tranche of its private placement for gross proceeds of $95K (Guadalupe project, Sonora).  Great Panther announced USD $10M concentrate prepayment (Guanajuato mine complex, Guanajuato). Telson announced its intention to conduct a non-brokered private placement for gross proceeds of up to CAD $3M (Campo Morado mine, Guerrero). SilverCrest announced that SSR mining elected to exercise its SilverCrest equity participation with CAD $13.25M private placement (Las Chispas project, Sonora).  ON RESOURCES AND DEVELOPMENT, Sierra Metals updated mineral resource estimate for its Bolivar mine in Chihuahua.  Leagold announced expansion plans for its Los Filos mine in Guerrero. ON DEALS AND CORPORATE ISSUES, Prospero sold its Mexican subsidiary Minera Fumarola S.A. de C.V. to an arm’s length purchaser, Aquatio S.A. de C.V. of Jalisco State, Mexico (Pachuca SE project, Hidalgo). Equinox Gold and Leagold mailed management information in order to approve business combination and create a premier Americas Au producer (Los Filos mine, Guerrero). Goldgroup provided a legal update on its dispute with DynaResources concerning the San Jose de Gracia mine in Sinaloa. ON SOCIAL RESPONSIBILITY, Fresnillo plc created more than 9,000 jobs in 2019. Zacatecas students created a protective device for miners to reduce accidents.

ON MEXICO ISSUES

  • La Caridad mine in Sonora, owned by the Grupo Mexico, is one of the most precious jewels of the Mexican mining. Its activity dates back to the pre-Hispanic era, but which had its greatest boom in the early twentieth century and that today is recognized in the history of our country as a factor of advancement and economic development for all Mexicans. Today it is the best integrated mine in the world, a mine where Cu is split and extracted for plate refinement. But this is not the only thing that is exploited in La Caridad, because large quantities of refined Au and Ag are also obtained, as well as Moly, a metal highly prized for its ability to create alloys with steel. But beyond its metallurgical production, La Caridad is also important for the entire region and the surrounding villages, as the mine generated multiple infrastructure works, thus generating a chain of well-being for its inhabitants. Developing new schools, cultural, sports facilities, housing, personnel transport systems and a supply network for workers, known as the “miner’s stores”, in addition to thousands of direct and indirect jobs.
  • Lithium can turn Mexico, in the planet´s chargeable battery. After one of the biggest Li deposit was discovered in Sonora by Bacanora, a Canadian mining company. The technology industry has set its sights on the country with multiple requests from mining companies that want to exploit it, including Chinese corporations. Given this news, the head of the SEMARNAT, Victor Manuel Toledo, described the potential that this represents for Mexico in terms of tax collection and economic recovery, saying that worldwide Lithium has become “the new oil.” Bacanora, in collaboration with the Chinese Ganfeng already plans to raise at least USD $400M to request a license from the Mexican government for the exploitation of a Li quarry allegedly made up of 4.5 M tonnes of this element that has detected, which would later generate profits for these companies of at least USD $1B.
  • Mexico announced USD 4.65B in capital expenditure for new mining projects in 2020-2021. A series of mining companies will commence to build various mining projects in Mexico in 2020. Minera Alamos, expects to initiate construction of its Santana-Los Verdes project in Sonora in Q1, 2020 with an investment of USD $7.55M, which includes the construction of a coal plant, platforms, ponds and various earthworks at the mine site. The complex should start producing in Q3, 2020. It also plans to begin construction of its la Fortuna mine in Durango at the end of 2020 at a total cost of USD $26.9M. Torex Gold Resources Inc., expects to start the construction of its Media Luna mine in Guerrero in Q1, 2021, with a capital expenditure of USD $482M. Media Luna has a capacity of 47M Lb Cu, 170K Oz Au, and 1.7M Oz Ag per year. Prime Mining Corp., plans to begin construction of its Los Reyes project in Sinaloa in June 2021 and end in December of the same year. The capital expenditure of the project is set as USD $89.5M and its capacity is 35K Oz Au and 253K Oz Ag per year, with a useful mine life of 11 years. VVC Exploration Corp., owns the USD $4B Samalayuca copper project in Chihuahua. Samalayuca, currently awaiting a construction decision, has an estimated useful mine life of 16 years. Southern Copper Corporation, is the owner of Mina Pilares in Sonora, which will produce Cu in concentrates to be processed in the La Caridad mine. Mina Pilares, currently awaiting a construction decision, should start producing in H2, 2021. Southern reported that it has already obtained environmental permits and is currently trying to acquire additional land.

ON EXPLORATION

  • GoGold Resources Inc., filed a NI 43-101 Technical Report on its Los Ricos project in Jalisco. Work done by GoGold confirms that the drilling program continues to intersect wide zones of Au & Ag from surface to vertical depths of 300m. The Los Ricos deposit is still open along strike to the north and at depth. It also concludes that although high-grade portions of the vein have been mined out, the structures still have wide mineralized intervals potentially amenable to surface mining methods. A budget of USD $5.3M was proposed to continue the exploration work at Los Ricos project in Jalisco for the year 2020. The company also announced that plans to complete an NI 43-101 compliant Mineral Resource Estimate on Los Ricos in 2020.

ON MINING

  • Telson Mining Corporation, reported some of the reactivation activities carried out at its Campo Morado mine in Guerrero to bring it back into production by mid January 2020. The company has already restored electrical power to the mine site, and personnel have commenced dewatering the mine. Access has been restored to the El largo Zone where there are approximately 50K tonnes of ore available to transport to the mill site that along with 20K tonnes of ore previously transported to the mill will be available for processing upon start-up. Personnel are also advancing on the process of checking, servicing, and repairing as necessary, all mill processing equipment, mobile mining equipment, underground mining equipment, ventilation systems and safety equipment, etc.
  • Newmont Goldcorp, provided a 2020 outlook for its Peñasquito mine in Zacatecas. It plans to produce 575K Oz Au at a cash cost of $570 per Oz Au and AISC of $725 per Oz Au. In addition, the company plans to produce 30 M Oz Ag, 200M Lb Pb, and 425M Lb Zn, at a cash cost of $515 per Oz AuEq and AISC of $805 per Oz AuEq.

ON FINANCING

  • Sonoro Metals Corp., received proceeds of $875K from the sale to Agnico of the 1% NSR on the Chipriona property, located in the Mulatos mining district in Sonora. The NSR originated from the sale of the Chipriona property to Agnico in December 2019 for the amount of $4M plus the NSR.
  • First Mexican Gold Corp., closed the third tranche of its private placement for gross proceeds of $95K. In total, the company issued 20M shares for gross proceeds of $1M (Guadalupe project, Sonora).
  • Great Panther Mining Limited, entered into a USD $10M prepayment agreement with the IXM Group for 100% of the Au-Ag concentrates produced from the Guanajuato mine complex in 2020 and 2021. The prepayment will be repaid on December 31, 2020 and will bear interest at an annual rate of 3-month USD LIBOR plus 5%.
  • Telson Mining Corporation, announced its intention to conduct a non-brokered private placement for gross proceeds of up to CAD $3M (Campo Morado mine, Guerrero).
  • SilverCrest Metals Inc., announced that SSR Mining elected to exercise its shareholder participation right, pursuant to an agreement between the company and SSR Mining dated November 28, 2018. Accordingly, SSR Mining has agreed to purchase 1,819,074 shares of SilverCrest for aggregate proceeds of CAD $13.25M at the same price of CAD $7.28 as the bought deal public offering announced by SilverCrest on December 3, 2019. SSR entered into a transaction with a third party to divest of the 1,819,074 SilverCrest common shares to be acquired pursuant to the private placement at a price of CAD $8.45 per common share for a pre-tax gain of approximately CAD $2.1M. Net proceeds raised by SilverCrest will be used to continue exploration and development of its Las Chispas project in Sonora.

ON RESOURCES AND DEVELOPMENT

  •  Sierra Metals Inc., updated mineral resource estimate for its Bolivar mine in Chihuahua. This mineral resource update includes 13,698m of infill drilling and 41,553m of exploration drilling. Total indicated mineral resources are 11.63M tonnes of 0.95% Cu, 18 g/t Ag, and 0.24 g/t Au (or 1.16% CuEq) for a total of 244.3M Lb Cu, 6.8M Oz Ag, and 90.4K Oz Au (300.1M Lb CuEq). Total inferred mineral resources are 16.69M tonnes of 0.93% Cu, 17 g/t Ag, and 0.30 g/t Au (or 1.16% CuEq) for a total of 342.1M Lb Cu, 9M Oz Ag, and 162.7K Oz Au (428.1M Lb CuEq). Sierra Metals plans to update a PEA for the Bolivar mine which is expected to be released in Q3, 2020. Goal of the PEA is to increase tonnage throughput in excess of 5,000 tonnes per day, which is expected to be reached by the end of 2020.
  • Leagold Mining Corporation, announced a USD $180M expansion plans for its Los Filos mine in Guerrero. Expansion began in July, with the final phase of development scheduled to conclude by end-2021. The Los Filos expansion will play a key role to consolidate the recently merged Equinox-Leagold combined company as a producer of 1M Oz Au per year in 2021, based on output from current mines in Brazil, Mexico and USA. This expansion will position Los Filos mine as one of the Mexico´s biggest Au mines, combining underground and open pit operations across the Los Filos, Bermejal and Guadalupe deposits. The expansion is expected to roughly double production at Los Filos in 2021 from around 200K Oz Au produced in 2019 to 400K Oz Au.

ON DEALS AND CORPORATE ISSUES

  • Prospero Silver Corp., sold its Mexican subsidiary Minera Fumarola S.A. de C.V. to an arm’s length purchaser, Aquatio S.A. de C.V. of Jalisco State, Mexico, for a cash purchase price of USD 5K, and assumption of all statutory liabilities and obligations of the subsidiary in Mexico, including property maintenance and abandonment, statutory employee severance, and tax obligations, estimated to aggregate to USD $95K.
  • Equinox Gold Corp., and Leagold Mining Corporation, mailed management information to approve business combination to create a premier Americas Au producer. “Pursuant to the transaction, Leagold shareholders will receive 0.331 of an Equinox Gold share for each Leagold share held. At closing, existing Equinox Gold and Leagold shareholders will own approximately 55% and 45% of the combined company, respectively, on an issued share basis. The combined company will continue as Equinox Gold under the ticker symbol “EQX” on both the Toronto Stock Exchange and the NYSE American Stock Exchange” (Los Filos mine, Guerrero).
  • Goldgroup Mining Inc., provided a legal update on its dispute with DynaResources concerning the San Jose de Gracia mine in Sinaloa. It is awaiting the written judgment of the 11th Federal Circuit Collegiate Court in Mexico to be published to assess its contents and reason for judgment. The Company will continue to pursue all legal avenues in Mexico to achieve a favorable resolution to the DynaUSA dispute. It also will continue the enforcement of the final judgment from the US District Court for the District of Colorado which confirmed the company´s previously announced favorable award in the arbitration against DynaUSA.

ON SOCIAL RESPONSIBILITY

  • Fresnillo plc., generated more than 9,000 jobs in 2019. The company is making every effort to be competitive, to continue generating jobs for Fresnillo and generate economic benefits for the population.
  • Zacatecas students, created a protective device for miners to detect risk of fatigue, heart rate and blood pressure. The intelligent device called EPIMIN is set inside the hard hat of the miners to detect fatigue of the miners, based on heart rate, blood pressure, and temperature, with the variable that, in case of presenting any irregularity, the device will issue a sensory alert to the user and will alert a monitoring center located on surface with the person in charge. “An investment in technology like this will allow mining companies to control work risks, anticipate them, prevent them and get to the longed for zero accidents.”

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

On the picture above, a Mn-Fe/calcite fault-bx hosted in rhyolites in a prospect in Chihuahua, Mexico.  Photo by Miguel A Heredia.

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

IMG_0833

By Jorge Cirett

During the 50th week of the year (December 9th to December 15th, 2019), at least 18 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, Bacanora Minerals lithium deposit in Sonora is considered the biggest resource of the metal in the world, according to Francisco Quiroga, Mining sub-secretary. Camimex calls to maintain the competitivity of the mining sector, as it is being threatened by a environmental tax proposal. Newmonts Goldcorp´s Peñasquito mine in Zacatecas is to lift Mexican gold production in 2020, according to BNamericas. Camimex invited the secretary of the environmental agency (SEMARNAT), Victor Manuel Toledo to visit one of the mining units, for him to review what sustainable mining is. He will also be visiting Hermosillo and Ures, meeting with authorities of the municipalities affected by a toxic leak on 2014. ON EXPLORATION, in Chihuahua, Mammoth Resources updated on exploration efforts by partner Centerra at its Tenoriba project; Kootenay Silver released good drilling results on its Columba property. ON MINING, Alamos Gold and Golden Minerals released results for the third quarter 2019. GoGold released results on the year ending in September 2019. ON FINANCING, Advance Gold closed the second tranche of its private placement for gross proceeds of $42 K. Azure Minerals announced the receipt of A$467 K of VAT back taxes (dating to 2016) from the government. Tamino Minerals is planning to become “Pink Current” very soon on the OTC. Odyssey Marine Exploration obtained commitments for up to $4.2 M.   ON RESOURCES AND DEVELOPMENT, Candelaria Mining released results on 15 new holes from the Mirador mine at the Altagracia project in Oaxaca. Pan American Silver announced an initial resource estimate, on the polymetallic  skarn deposit at La Colorada, of 72.5 M tonnes @ 44 gpt Ag, 0.17% Cu, 2.02% Pb, 4.40% Zn, remaining open in most directions, and containing over 100 M Oz Ag. Defiance Silver updated on exploration efforts at its San Acacio project in Zacatecas and at its Tepal project in Michoacán. Prime Mining released surface road cut and trench assays from its Guadalupe de los Reyes project in Sinaloa. ON DEALS AND CORPORATE ISSUES, Tamino Minerals has signed a LOI on the Ofelia property, in Sonora. Discovery Metals informed Eric Sprott now owns 21% interest in the company. Newmont Goldcorp announced a deal with the Cedros community on water resources. ON SOCIAL RESPONSIBILITY. A mining gathering was held in Banamichi, Sonora. The Asociación de Mineros de Sonora celebrated its 40th anniversary. The first “Comité de Desarrollo Regional para las Zonas Mineras” was created in Sonora, to recommend the use of the Mining Fund in certain infrastructure projects in mining areas. Dr. Vagón, Grupo Mexico’s health itinerant clinic was at La Junta, and soon to be moved to the nearby Ciudad Cuauhtémoc, both in Chihuahua. The Consorcio Minero Benito Juárez and the Fundación Bécalos Televisa delivered 120 scholarships to excellency students. A fair was held in Tayoltita, Durango, to bring awareness of the mining work and environment to inhabitants and family members of mine workers. Minera Media Luna is showing a strong support for education in Guerrero, with shcolarships, internships and support to local schools. The Sonora miners association (AMSAC) signed an agreement with the Consejo Regulador del Bacanora, to source agave saplings on its greenhouses to the agave growers. The Mexican gray wolf has left the list of extinct species in the wild, moving to the category of species on extinction risk.

ON MEXICO ISSUES

  • The lithium deposit in Sonora is the major project of its type in the World, according to Francisco Quiroga, Sub-Secretary of Mining, on an interview by a journalist known country wide. He cautioned on not hurrying up to celebrate, as the lithium still has to be extracted, and be metallurgically separated of the other minerals present in the ore (In this project, unlike other, lithium is contained in a clay). This project is assumed to have 243 M tonnes of lithium, surpassing the Thacker Pass deposit in Nevada, the second lithium deposit, with reserves of 179 M tonnes of lithium. The deposit is co-owned by the English company (not Canadian, as stated in the note) Bacanora Lithium and the Chinese Ganfeng Lithium, and located in the Bacadehuachi municipality (tens of kilometers from the Campo Verde Protected Natural Area and the Chihuahua border).
  • Camimex calls for maintaining the competitivity of the Mining Sector in Sonora. The call was made by Karen Flores, Camimex head, on the first Universitary Mining Gathering held in Banamichi, Sonora. She called for a proposal to tax mining operations on environmental grounds to be repelled. Such tax would transform Sonora in one of the more expensive places to mine, in an industry that is already heavily regulated and taxed. According to the authorities, mining in 2018 provided more than 46 billion pesos (US$2.36 billion) in taxes, 9,000 billion pesos (US$461 M) in rights and more than 4,500 billion pesos (US$230 M) in resources for the Mining Fund.
  • Newmont Goldcorp’s Peñasquito mine in Zacatecas is to lift Mexican gold production in 2020, when production by other big players is to decline. The combined production by the three biggest producers in Mexico, Fresnillo, Newmont Goldcorp, and Alamos Gold should reach 1.59 M Oz Au, above the 1.22 M Oz Au mines in 2019. This is a 30% increment year on year, achievable if the companies reach their mid-point guidelines. According to BNamericas this figure is more than half the 3.15 M Oz Au to be produced by more than 20 companies in Mexico. Fresnillo’s production reached 923 K Oz Au in 2018, expects to produce 885 K Oz in 2019, 785 K Oz in 2021 and 665 K Oz in 2022; the decline motivated by the end of production at the Noche Buena mine and less production at Herradura. Meanwhile, Peñasquito expects to produce 575 K Oz Au in 2020 , and a little bit more in 2021, before production starts to decline due to lower grades. Alamos Gold expects to produce 150 – 160 K Oz Au during 2019 in Mulatos, while the Chanate mine is to produce only 5 K Oz. Minera Frisco and Agnico Eagle have seen their gold production dwindle in 2019, while Torex Gold reached 138 K Oz Au produced during the third quarter, and the company expects to sell 430 K Oz Au this year. Leagold also is to increase production at Los Filos, expecting to double on the 200 K Oz Au forecasted for this year.
  • Camimex invited Victor Manuel Toledo, secretary of the environment and natural resources (SEMARNAT) to visit one of the mining units, for him to review what sustainable mining is. Earlier in the day, in the morning presidential conference, Toledo stated that Semarnat is not against mining: “For Semarnat there is not good or bad mining, revisions have to be on a case by case basis, and confirm through inspection its adherence to norms”.
  • Victor Manuel Toledo, secretary of the environment and natural resources (SEMARNAT) is to be in Hermosillo in December 18th for the presentation of a book on the toxic leakage of 2014, and in Ures to meet with affected parties and authorities of municipalities within the Rio Sonora basin.
  • Alberto Orozco, president of the Sonora Mining Cluster, praised the visit that Victor Manuel Toledo (Environmental Secretary) is to make next week to a mining unit in Sonora. Orozco stressed the presence in Sonora of companies highly involved in the social and economic development of the producing regions in a sustainable manner. He also pointed that the Sonoran mining production is 36% of the national production, contributing with 18% of the State gross domestic product.

ON EXPLORATION

  • Mammoth Resources Corp. updated on exploration efforts at its Tenoriba project, funded by partner Centerrea Gold Inc.. Field logistics have been set, all historical geologic data compiled for Centerra’s review and interpretation and a 3D model is under preparation; all un-assayed core was sent for analysis, and the previous drill program permit is being closed, and a new one is to be prepared. Strong argillic, argillic and minor vuggy silica is present on volcanic rocks on a 4 to 6 Km long belt, with geophysics re-processing pointing to a larger target than previously envisaged, and a new 30 line-Km survey is being planned. A large soil anomaly highlights the eastern part of the corridor. Mammoth is working on community consultation processes with the two ejidos (communal lands) involved.
  • Kootenay Silver Inc. released results from six holes drilled at its Columba project in Chihuahua. Highlighted intervals comprise: 25.85 m @ 200 gpt Ag (including 11.5 m @ 415 gpt Ag, which includes 4.0 m @ 721 gpt Ag, which includes 1.9 m @ 982 gpt Ag) in silicified breccias in proximity to a lithological contact; 6.25 m @ 67 gpt Ag (including 2.09 m @ 172 gpt Ag); 3.0 m @ 314 gpt Ag (including 0.63 m @ 776 gpt Ag); 59.8 m @ 48 gpt Ag (including 9.57 m @ 146 gpt Ag); 6.63 m @ 103 gpt Ag and 1.0 m @ 124 gpt Ag. Several of the intercepts are in quartz veins in rhyolite, as quartz stockworks and as quartz-barite veins.

ON MINING

  • Alamos Gold Inc. released some production figures for 2019, including data on its Mexican production. At Mulatos, in Sonora, during the first nine months of this year 20 K tonnes per day were stacked @ 0.92 gpt Au, with a recovery of 67%, to produce 108 K Oz Au at cash cost $772 and a mine-site AISC of $861. Production from the Mulatos district is expected to total 150-160 K Oz Au in 2020, with ore mined from the Mulatos, El Victor and San Carlos open pits, as well as new production from Cerro Pelon. “A total of $7 million has been budgeted at Mulatos for exploration in 2020 which includes 14,000 m of drilling focused in the Mulatos near-mine, Carricito and La Yaqui Grande areas. A number of regional exploration targets have been identified in 2019 from the property-wide VTEM geophysical survey that was completed in late-2018. A focus of the 2020 regional exploration program will be to further evaluate these targets through systematic mapping, sampling, and ground geophysics”.
  • Golden Minerals Co. released results for the third quarter 2019. During the period Golden reported revenue of $1.9 M related to the lease of Velardeña’s oxide mill and costs of $0.6 M related to the services provided under the terms of the lease, for a net operating margin of $1.3 M. Exploration expenses were $0.9 M, Velardeña care and maintenance $0.4 M, administrative expenses $0.7 M for a total loss of $1.8 M for the quarter. Last October Golden entered into an agreement with Magellan Gold Corp. to sell the company’s option to earn a 100% interest in the Santa Maria and Las Marias exploration properties in Chihuahua. Cash and cash equivalents of $2.9 M by the end of the period.
  • GoGold Resources Inc. announced financial results for the year ending 2019. During the last quarter period the company acquired the Los Ricos project in Jalisco, for share consideration of $5.4 M and cash $4.5 M, of which $3.9 M is payable over three years. During the period the company sold 1 M Oz Ag and 8,752 Oz Ag, produced 1.78 M Oz AgEq, had income of $8.1 M at an AISC of $14.82 per Oz AgEq and cash cost $11.80 per OZ AgEq, a gain of $11.8 M on the sale of the Santa Gertrudis project royalty and has a net working capital of $13.1 M.

ON FINANCING

  • Advance Gold Corp. closed the second and final tranche of the private placement previously announced, for gross proceeds of $42 K (Tabasqueña, Zacatecas).
  • Azure Minerals Ltd. announced that the Mexican tax office has paid this week the amount of MX$6.19 M, approximately A$467 K. This is the interest component from a previous payment, bringing the total received by Azure to A$1.23 M. The payments are the result of the successful resolution of the company’s legal action for the recovery of IVA (the equivalent to GST, or VAT) dating to the 2016 financial year. A fee of 15% is payable to the legal and tax advisors involved (Alacrán, Sonora).
  • Tamino Minerals Inc. is planning to become Pink Current very soon on OTC markets, abiding to OTC disclosure lines. As of the end of September 2019, the company has 370.6 M shares, of which Pedro Villagran holds 138.8 M and Joseph Berry 33 M.
  • Odyssey Marine Exploration, Inc. obtained commitments for up to $4.2 M in funding in two separate arrangements. A group of existing shareholders is to provide up to $2 M in funding ($539 K already submitted) as advance against a portion of multi-million dollar payment Odyssey expects to receive within the next six months, related to a previously completed ship-wreck project. In addition, “a term sheet has been executed and definitive agreements are being drafted with the group that has already committed up to $6.5 million in non-recourse legal funding for the NAFTA action for up to an additional $2.2 million” (Bay of Ulloa, Baja California Sur).

ON RESOURCES AND DEVELOPMENT

  • Gold Resource Corp. released drill results from 15 holes from the Mirador mine area in the Altagracia project in Oaxaca. The Mirador mine is 16 Km NW from the Company’s Aguila project and processing facilities. Highlighted results comprise: 9.21 m @ 0.24 gpt Au, 260 gpt Ag (including 0.73 m @ 0.58 gpt Au, 1,085 gpt Au); 1.38 m @ 4.39 gpt Au, 1,455 gpt Ag; 1.08 m @ 1.81 gpt Au, 2,190 gpt Ag; 5.99 m @ 1.04 gpt Au, 206 gpt Ag (including 1.54 m @ 2.02 gpt Au, 590 gpt Ag); 3.72 m @ 1.44 gpt Au, 910 gpt Ag (including 1.0 m @ 2.84 gpt Au, 2,610 gpt Ag); 2.67 m @ 1.10 gpt Au, 354 gpt Ag.
  • Pan American Silver Corp. announced an initial mineral resource estimate for the large polymetallic deposit discovered in 2018 at La Colorada mine in Zacatecas. The inferred mineral resource is 72.5 M tonnes @ 44 gpt Ag, 0.17% Cu, 2.02% Pb, 4.40% Zn, remaining open in most directions and containing 102 M Oz Ag, 3.2 M tonnes of Zn, 1.5 M tonnes of Pb, and 121 K tonnes of Cu. Most of this mineralization is contained within a larger mineralized skarn 500 m x 600 m, between 600 and 1,700 m of depth. To make the geologic interpretation and resource estimation, 65 drill holes totalling 54,000 m of drilling were utilized.
  • Defiance Silver Corp. updated on exploration efforts to be made at its San Acacio project in Zacatecas. Targeted core re-logging and selective re-assay is on-going and will continue through 2020, while field exploration involves surface geochemistry outside the resource area, systematic underground mapping and sampling and regional targeting are carried out.
  • Defiance Silver Corp. announced OreQuest has been planning an exploration program at Tepal, in Michoacan. The aim is to follow up on high-grade drill results as the 1.42 m @ 25 gpt Au, 565 gpt Ag of last year campaign, which is coincidental with highly anomalous surface geochemistry and an untested chargeability anomaly.
  • Prime Mining Corp. released results from surface exploration at it Los Reyes property in Sinaloa. The trenching program has an advance of 25% with highlighted results of 5 m @ 1.0 gpt Au, 11 gpt Ag; 10.5 m @ 2.0 gpt Au, 18 gpt Ag; 16.5 m @ 2.5 gpt Au, 40 gpt Ag; 36.0 m @ 1.84 gpt Au, 13 gpt Ag; 34.5 m @ 4.2 gpt Au, 21 gpt Ag; 13.5 m @ 1.54 gpt Au, 37 gpt Ag in rod cuts, and 9 m @ 0.92 gpt Au, 22 gpt Ag; 4.5 m @ 2.66 gpt Au, 30 gpt Ag; 13.5 m @ 1.42 gpt Au, 49 gpt Ag; 13.5 m @ 1.59 gpt Au, 28 gpt Ag; 7.5 m @ 1.84 gpt Au, 37 gpt Ag; 16.5 m @ 1.04 gpt Au, 23 gpt Ag; 15.0 m @ 5.58 gpt Au, 23 gpt Ag in trenches. The company is working with the database of 493 historic drill holes to establish a new 43-101 compliant resource (currently holding 380 K and 155 K Oz Au in the indicated and inferred categories respectively).

ON DEALS AND CORPORATE ISSUES

  • Tamino Minerals Inc. informed it has singed a letter of intent (LOI) on the Ofelia property in Sonora. The LOI terms state four years of staged payments totalling US$1 M plus a 2% NSR, and provides a 90-day term for due-diligence work.
  • Discovery Metals Corp. announced that with the conversion of 3.3 M subscription receipts to shares, Mr. Eric Sprott owns now approximately 21% interest in the company (Cordero, Chihuahua).
  • Newmont Goldcorp. announced that the Peñasquito mine and the nearby San Juan Cedros community (one of 25 neighbouring communities) in Zacatecas, agreed to an infrastructure solution for sustainable water availability for the community. The 30-year water agreement includes additional water wells to supplement the 600 K liters per-day reverse osmosis drinking water plant the company built in 2018.

ON SOCIAL RESPONSIBILITY

  • A Mining Gathering was held in Banamichi, Sonora, with more than 600 attendees, mostly students, with the purpose of letting them know the opportunities for internships and employment in mining units. Among the attendees were also governors of mining states, the ambassadors of mining countries, Congress representatives, Union leaders, 14 majors and representatives for mining companies, mining associations and mining communities.
  • The Asociación de Mineros de Sonora (Sonora’s Miners Association, or AMSAC) celebrated its 40th The celebration included a series of presentations and a formal dinner. Among the speakers were Francisco Quiroga (Mining Sub-secretary), Karen Flores (Camimex), Ernesto [Ríos (Americas Mining) and Lourdes McPherson (Argonaut Gold).
  • The first “Comité de Desarrollo Regional para las Zona Mineras (Mining Zones Development  Committee) was created in Hermosillo, Sonora. The finality of such committees is to assess and approve investment projects derived from the Mining Fund, incorporating all interest groups. The committee is integrated by:Comite Fondo Minero11The fist session is to be held in February 28, 2020, and the second on August 28, 2020.
  • Dr. Vagón is to be at La Junta, Chihuahua. From the 12 to the 16 of December, 2019. Among the services to be provided are: general consult, dermatology, pediatric care, geriatric care, odontology, chiropractic, physic rehabilitation, optometry, audiometry, mastography, colposcopy, family planning, lab test, diabetics clinic, psychology and nutrition. This itinerant train-mounted clinic has the capacity to Attend 550 persons daily.
  • The Safety, Environment and Social Responsibility Fair San Dimas 2019, was held on December 6 in Tayoltita, Durango. The different departments of the First Majestic mine displayed details on their work on the mining process, in a didactic and entertaining way, to workers, suppliers, municipality and State authorities, as well as their families and local inhabitants. Radio Plata (Silver Radio) was commissioned, the first radio station to be located in the vicinity, is part of the company’s Centro Cultural, where educative, social and cultural activities are to take place.
  • Minera Media Luna is showing a strong support for education in Guerrero. With support from local authorities in Cocula, the Instituto Tecnológico de Iguala, the Universidad Tecnológica Autónoma del Norte de Iguala, the State government, the Instituto Estatal para la Educación de Jóvenes y Adultos de Guerrero and the general population in Cocula, the company has: installed programs for diminishing the educative lag in primary and secondary education; taken 36 students in internships from local universities; supported 86 students through scholarships; invested $500 K pesos along with the Cocula municipality for the hiring of primary education personnel; participated in the Fourth Week of Mining on the Universidad Autónoma de Guerrero…. And several other programs in education not posted here for lack of space.
  • AMSAC, the Sonora Miners Association, signed an agreement with the Consejo Regulador del Bacanora (Regulatory Council for Bacanora, a spirits drink). Under this agreement , several mining companies are to grow the needed agave saplings for the production of Bacanora in their green houses, to be transplanted in the field by the agave growers.
  • Minera Peña Colorada presented the “Ilustred Guide to Wildlife in the Minatitlan Microbasin”, at the Feria Internacional del Libro 2019, in Guadalajara, Jalisco. This work was accomplished with the support of the Universidad Nacional Autónoma de México, and the Benemérita Universidad de Puebla.
  • The Mexican gray wolf has left the list of extinct species on the wild, moving to the category of species on extinction risk. This is the result of an international effort among the USA and Mexican governments, with the participation of Grupo Mexico. The declaration comes after 12 liberations and the documentation of 9 successful litters with some 30 puppies on the wild. Grupo Mexico, as well as other mining companies, has an UMA (Environmental Management Unit) that take care and reproduce threatened species.
  • Dr Vagón, Grupo Mexico’s health train, is to be on Ciudad Cuahutémoc, Chihuahua, from December 18 to December 22. The 17 train carriages itinerant clinic has the capacity to attend 600 persons per day, providing for a wide array of services, like diagnostics, ailment prevention, dermatology, odontology, physical rehabilitation, optometry, audiometry, psychology, nutrition, diabetes and chiropractic treatments.

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

On the image below: Sheeted quartz veinlets from an orogenic gold project in Oaxaca. Picture by Jorge Cirett

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

IMG_0788 - copiaBy Jorge Cirett

During the 48th week of the year (November 25th to December 1st, 2019), at least 23 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, The Fourth Forum on Community Relations was held in Hermosillo. Steel production in Mexico decreased 3.6% during October, compared with October of last year; Steel production is 7.8% down for the first 10 months of 2019. The Sombrerete mine in Zacatecas might have to halt work, as a court provided a judicial restriction (“amparo”) under which the strike (commanded by Napoleon Gomez Urrutia) that paralyzed operations for more than ten years, is still valid. Mining and Metallurgical production in Mexico fell 4.2% in September. ON EXPLORATION, in Sonora, Silver Viper has commenced a 5,000 m drill program at its La Virginia project; Magna Gold provided an update on exploration at its Mercedes project near Yecora. In Coahuila, Discovery Metals released rock channel results from the Minerva, Monclova and Puerto Rico properties. In Zacatecas, Advance Gold has started drilling a large chargeability anomaly at its Tabaqueña property. ON MINING, Impact Silver and Discovery Metals released financial results for the third quarter 2019. ON FINANCING, Vangold Mining is to close the third tranche of financing for $707.5 K, while delisting from the TSX. San Marco completed a financing round for $448.6 K. McEwen Mining closed its offering for gross proceeds of US$50 M. VVC Exploration paid CA$200.9 K of debts with shares. Goldplay granted 1.37 M stock options to directors, officers and consultants. Vizsla Resources closed the first tranche of financing for gross proceeds of $3.6 M.  ON RESOURCES AND DEVELOPMENT, Candelaria Mining released results from 20 in-fill holes at Pinos, Zacatecas. Orla Mining expects to initiate open pit operations at Camino Rojo, in Zacatecas, in mid 2021. Peñoles is discussing possibilities to re-open the famous Naica mine, in Chihuahua. Peña Colorada commissioned a new, more sustainable, plant in Minatitlan, Colima. Discovery Metals began re-logging 132,000 m of historic drilling at Cordero, in Chihuahua, along with an airborne magnetic and electromagnetic survey, aiming to produce higher grade zones within the resource and new exploration targets outside it.  ON DEALS AND CORPORATE ISSUES, Azure Minerals overturned the cancellation of a key mineral concession on its gold-cobalt-copper skarn Sara Alicia project in Sonora. Tocvan Ventures agreed with Colibri Resource the acquisition of the Pilar project in Sonora. Tamino Minerals signed a LOI on the Ofelia project, in Sonora. Discovery Metals released results for the third quarter 2019, period during which the company acquired all shares from Levon, and thus the Cordero project in Chihuahua. ON SOCIAL RESPONSIBILITY. The Mining Baseball League was created, and the first game between the Nacozari and Caborca teams was held in Nacozari, Sonora. The fifth Caborca Health Fair sponsored by Penmont and the UNAM foundation was held in El Coyote Ejido, providing more than 3,600 specialized services. The Peña Colorada mine commissioned one km of cobble stone road to connect two communities in Jalisco. Orla Mining is working alongside three communities in Zacatecas, aiding in education related programs and water supply. Grupo Mexico has an exhibition at its Casa Grande in Nacozari. Ternium and the IMSS held a Health Fair in Colima. Peñoles had a Health Journey in Teleolapan, Guerrero. The spread of renewable energy production is changing the environmental impacts of mining project worldwide.

ON MEXICO ISSUES

  • The fourth Foro Minero de Relaciones Comunitarias (Community Relations Mining Forum) was held in Hermosillo on November 22, organized by the Sonora Mining Cluster, with the presence of the State governor, Claudia Pavlovich. Among the personalities present were Francisco Quiroga (Mining Subsecretary), Fernando Alanís (Camimex), Alberto Orozco and Gildardo Montenegro (Sonora Mining Cluster), Elia Tello (USA Consul), Manuel Barbera (from the Australian Embassy) and Alfonso Reyna (Construplan). The event had the presence of 360 attendees, almost twice the expected attendance.
  • On the Fourth “Foro Minero de Relaciones Comunitarias” (Community Relations Mining Forum), Fernando Alanís Ortega, Camimex President, elaborated on how the mining business model has evolved towards co-responsibility, and the advances the mining sector has provided for social development in Mexico. He spoke on behalf of Peñoles and the Camimenx, citing the numerous contributions by the company that generates 32,950 direct jobs and 34,598 indirect jobs, with $29,544 M pesos in salaries in 2018. Among the industry numbers presented are: Total investment on social development in 2018, $253.5 M pesos (US$13.2 M), 176 K beneficiaries, 55.5 K medical consults, $51,871.4 M pesos in salaries, over 500 alliances with ONG’s and governments, Environment investment of $803 M pesos, almost 580 K trees planted, 1,360 scholarships and 55 community centers in 40 localities.
  • Steel production in Mexico saw a decrement of 3.6% in October, accumulating a loss of 7.8% on production in the first 10 months of the year 2019. Worldwide, the reduction reached 2.8%, compared with the production of a year ago. In Mexico, the decrease has been due to poor numbers in construction and the automobile industry, as a result of the current economic stagnation.
  • An “amparo” or judicial restriction was granted to the Sindicatio Nacional de Trabajadores Mineros, Metalúrgicos, Siderúrgicos y similares de la República Mexicana, headed by the Morena senator Napleón Gómez Urrutia. Under the resolution Grupo México should respect the strike on the San Martín de Sombrerete mine in Zacatecas, which was declared in 2007 (Note by GPM.- The mine has been in operation by another union since August of 2018, and this ruling probably means all work is to be halted. Bad news for Sombrerete).
  • The mining and metallurgic production in Mexico fell by 4.2% in September. Among the losers, gold production decreased 22.3%, sulphur 13.2%, 12.7% fluorite, 12% lead, 11.2% gold, 2.2% silver and 1.2% copper. On the other hand, coal production increased by 7.2%, zinc by 2.0% and gypsum by 1.3%

ON EXPLORATION

  • Goldplay Exploration Ltd. Released results on its maiden drill program at the Nava target, within its San Marcial property in Sinaloa. Highlighted results from the first four drill holes comprise 1.00 m @ 354 gpt Ag (including 0.15 m @ 1,377 gpt Ag) in one hole; 0.45 m @ 0.21 gpt Au, 196 gpt Ag; 4.10 m @ 0.38 gpt Au; 0.95 m @ 2.35 gpt Au; 3.75 m @ 0.50 gpt Au; 2.30 m @ 0.42 gpt Au (including 0.10 m @ 8.94 gpt Au); 1.00 m @ 0.74 gpt Au, in other hole, and 0.95 m @ 1.22 gpt Au, 10 gpt Ag in another hole.
  • Silver Viper Minerals Corp. has commenced drilling at its La Virginia project in Sonora. The program envisages 5,000 m of drilling in approximately 20 holes, starting on El Rubi zone, where previous drilling intersected 13.30 m (6.0 m true width) @ 3.16 gpt Au, 228 gpt Ag. The last campaign encountered mineralization over 100 m of strike length, and phase II of drilling is designed to test for the extension on strike and at depth on 50 m sections. The program will continue to probe prospective targets.
  • Advance Gold Corp. has started drilling to test the chargeability anomaly identified on a recent 3D induced polarization survey on its Tabasqueña property in Zacatecas. The chargeability anomaly is 1,000 m long by 500 m in width, remaining open to the north, south and to depth.
  • Magna Gold Corp. provided an update of work on four areas of the Mercedes project in Sonora. Drilling at La Lamosa confirmed oxide mineralization and a follow-up program is being contemplated to test the southeast dip and the extent to the North. At Mina de Oro gold occurs in a silicified dacite intrusive rock on a 330 m by 150 m belt that is still open. Historic workings have returned samples of up to 1.2 m @ 63.2 gpt Au; 1.2 m @ 8.6 gpt Au; 0.3 m @ 11.1 gpt Au. A drill program is planned for 2020 on this target. At Salto Colorado a matrix supported breccia is 300 m long and 60 to 150 m in width, developed in intrusive rocks at the contact with a volcanic rock package. Eight samples in this target are over 1 gpt Au, peaking at 8.52 gpt Au, 460 gpt Ag, 4.0% Pb, 4.2% Cu in a sample from a small working. At La Cueva/Nochebuena a matrix supported breccia 120 m by 80 m has returned up to 0.76 gpt Au, 80 gpt Ag and >1% Cu. The La Cueva breccia is 300 m by 10 to 50 m in width with one sample of 13 above 1 gpt Au.
  • Discovery Metals Corp. released results from channel sampling at Minerva, in Coahuila, where 52 of 78 samples returned values >500 gpt AgEq, averaging 0.6 m @ 710 gpt Ag, 13.1% Zn, 8.8% Pb, 0.2% Cu. At Monclova, in Coahuila, a maiden drill program is being planned along 1.5 km of a contact zone between an intrusive and limestone. At Puerto Rico, in Coahuila, the company is having the land re-designated, and once the process is completed, will submit the drill permit application.

ON MINING

  • Impact Silver Corp. announced financial results for the third quarter 2019. Throughput at the mill in its Minas de Zacualpan unit was 34.95 K tonnes @ 165 gpt Ag to produce 179.5 K Oz Ag, with the greater share of production coming from the Guadalupe mine. EBITDA was $0.3 M and net loss for the quarter $0.2 M, with a cash position of $4.4 M by the end of the period (with a non-brokered private placement for aggregate gross proceeds of $4.95 M).

ON FINANCING

  • Vangold Mining Corp. informed the first tranche of its private placement was closed in March with gross proceeds of $335 K and a finder’s fee of $9.45 K. The second tranche was closed on May, for gross proceeds of $248 K, paying a finder’s fee of $14.25 K and 285 K warrants. Vangold expects to close the third and final tranche of the private placement, for gross proceeds of $707.5 K, with no finder’s fee payable. The company has also entered into debt settlements agreements with two creditors to settle $20.2 K, including $10 K in management fees with an executive officer. Vangold is also to apply for a listing on the Canadian Securities Exchange (CSE) and delist from the TSXV (Pinguico, Guanajuato).
  • San Marco Resources Inc. completed a financing round for gross proceeds of $448.6 K, paying a 6% finder’s fee in cash ($12.1 K) and 6% finder warrants (Chunibas, Sonora).
  • McEwen Mining Inc. closed its previously announced offering, for gross proceeds of US$50 M (El Gallo, Sinaloa).
  • Discovery Metals Corp. released financial and operating results for the third quarter 2019. During the period the company acquired all shares from Levon (Cordero, Chihuahua) and completed a non-brokered private placement for $9 M. On November 5, Discovery completed a non-brokered private placement for gross proceeds of $19 M. On November 18, the company commenced trading on the OTCQX Best Market in the US. By the end of the period the company had cash and cash equivalents of $9.97 M
  • VVC Exploration Corp. announced that an aggregate of CA$200.9 K of indebtedness was converted into shares and warrants, with two insiders of the company participating in the debt conversion. On October 25 the company closed a private placement for CA$2 M (US$1.5 M) for development of the Kaity property in Chihuahua.
  • Goldplay Exploration Ltd. has granted 1.37 M stock options to directors, officers and consultants of the company, for a term of five years (San Marcial, Sinaloa).
  • Vizsla Resources Corp. closed the first tranche of $3.6 M of the previously announced $4 M private placement. The balance of the offering is expected to closed by December 5, 2019. The company expects to close the previously announced $2 M non-brokered private placement on December 6, 2019. (Panuco-Copala, Sinaloa).

ON RESOURCES AND DEVELOPMENT

  • Candelaria Mining Corp. announced in-fill drill results from 20 holes on the Cinco Estrellas vein at the Pinos project in Zacatecas. Highlighted true width (tw) intervals comprise: 2.0 m @ 4.2 gpt Au, 92 gpt Ag; 1.0 m @ 2.1 gpt Au, 45 gpt Ag; 1.0 m @ 2.3 gpt Au, 6 gpt Ag; 2.5 m @ 3.7 gpt Au, 62 gpt Ag; 2.9 m @ 3.4 gpt Au, 29 gpt Ag; 1.0 m @ 6.0 gpt Au, 16 gpt Ag (including 0.4 m @ 12 gpt Au, 21 gpt Ag); 0.7 m @ 3.0 gpt Au, 25 gpt Ag; 1.0 m @ 3.3 gpt Au, 54 gpt Ag; 1.3 m @ 6.7 gpt Au, 51 gpt Ag (including 0.5 m @ 15.5 gpt Au, 110 gpt Ag); 0.9 m @ 3.1 gpt Au, 91 gpt Ag; 1.1 m @ 4.3 gpt Au, 15 gpt Ag. The weighted true width average is 1.5 m.
  • Orla Mining Ltd. is to initiate open pit operations in June of 2021 on its Camino Rojo property in Zacatecas, according from Camimex sources. The company has already started to work with three local communities inhabited by more than 1,200 persons.
  • Industrias Mineras Peñoles, along with communal farmers (Ejido), the Naica Community in Chihuahua, the municipality authorities and the Subsecretary of Mining are in talks for the reactivation of the Naica mine. Along the agreements is the investment of US$8 M on exploration, and the support of the Subsecretary of Mining for the authorization of the use of the mine waters for agricultural use, and the evaluation of subsidies for the conditioning of irrigation channels. The company offered to provide the equipment and its maintenance, with the ejido taking care of the electricity bills.
  • Peña Colorada commissioned the “Planta de Pastas” on the Centro Industrial Paticajo, in Minatitlan, Colima. The more than 850 M pesos investment (~US$45 M) plant is technologically innovative and conductive to sustainable production.
  • Discovery Metals Corp. begun re-logging of the geology of the 132,000 m of historic drill core at Cordero, Chihuahua, with an actual advance of 50% to date. In September a rig was mobilized, and second one early in November, completing 3,600 m in 11 holes, of the 30,000 to 35,000 m to be completed before the end of 2021. A 5,100 line—km airborne magnetic and electromagnetic survey began in early November, to cover the 35,000 ha property, to define new targets based on the signature of the current resource area.

ON DEALS AND CORPORATE ISSUES

  • Alio Gold Inc. informed a settlement agreement has been signed with Maverix Metals Inc. regarding disputed royalty payments at the company’s Florida Canyon mine (San Francisco, Sonora).
  • Azure Minerals Ltd. overturned an historical cancellation of the Sara Alicia II mining concession that adjoins its Sara Alicia property in Sonora, completing the acquisition of the property. This event increases the area held by the company in the area from 9 to 49 hectares. The acquisition was closed with the payment of $80 K to the owners of the concession. The mineralization previously intersected by Azure is related to strong magnetic high, same that continues for more than 300 m into the Sara Alicia II concession.
  • Tocvan Ventures Corp. signed the agreement to acquire the Pilar project in Sonora, from Colibri Resource Corp.. Tocvan has advanced the first year’s cash payment of $125 K and issued 2 M shares. Tocvan must complete a $2 M of exploration in the property over five years and pay Colibri $275 K over five years in installments of $50 K, $75 K, $75 K, and $75 K on the second, third, fourth and fifth anniversary of the signing, to obtain 51% of interest in the property. To acquire the remaining 49% interest, an additional payment of $2 M must be done to Colibri within 6 months of the fifth anniversary.
  • Tamino Minerals Inc. signed a letter of intention (LOI) on the potential acquisition of the Ofelia project in Sonora. The 19 hectares claim has rock chip samples returning over 1 Oz Au per ton.
  • Discovery Metals Corp. released financial and operating results for the third quarter 2019. During the period the company acquired all shares from Levon (Cordero, Chihuahua)

ON SOCIAL RESPONSIBILITY

  • The sub-secretary of Mining, Francisco Quiroga threw the first ball on the Mining Baseball League (recently created to strengthen ties in the mining industry) in the game between the Nacozari (Grupo Mexico) and Caborca (Fresnillo) teams. Grupo Mexico has 16 teams in nine States within the Mining League.
  • The 5th Caborca Health Fair, sponsored by Penmont and the UNAM Foundation, was held on the nearby El Coyote Ejido (community). More than 3,600 specialized services like medical treatments and revisions, with the majority having dental checks and 600 sight checks. The Universidad de Sonora realized 297 blood tests, the Instituto Mexicano del Seguro Social (IMSS) applied 500 influenza shots and the Secretaría de Salud provided more than five thousand services in 12 service modules, among which were general consultations, reproductive health, prostate, breast and cervical cancer detection.
  • The Peña Colorada mine delivered to the authorities in Cuautitlan de García Barragán in Jalisco, one kilometer of cobble stone road between the Ayotitlan and Las Marías communities, as well as a vehicle to the Municipality DIF (Integral Family Development System). The company is also to provide funds for the development of a water well to service the Cerro Prieto, La Astilla and Las Pesadas communities.
  • Orla Mining Ltd. is working with three communities in the state of Zacatecas, well ahead of its intended start of production on its Camino Rojo property. Among the social responsibility practices by the company is the construction of a building for children of pre-school age, support on water well equipment, and educative programs linked with the “Instituto Zacatecano de Educación para los Adultos” and Summer courses.
  • Casa Grande, in Nacozari, Sonora, is the venue for the “Minerals, the skin our Earth” exhibition sponsored by Grupo Mexico. The company has 16 “Casa Grande” community centers in 11 States, where workshops take place, along with artistic and cultural activities.
  • Ternium’s Health Fair was held in Colima, providing pediatric, geriatric and gynecology medical and optometry services to the population, in coordination with the Health Secretariat of Colima and the local Instituto Mexicano del Seguro Social (IMSS).
  • Industrias Mineras Peñoles. is conducting, in alliance with Fundación UNAM, a Health Journey (Jornada de Salud) in Teleolapan, at the Centro de Salud of Tehuixtla, in Guerrero, near its Capela project.
  • Renewable Energy has a positive influence in the Mining Sector. According to Fitch Solutions, mining companies are aware of the decrement of production costs in renewable energy. Some of the most common energy technologies applied by the sector include wind, solar, bio-diesel, geotermic, hydroelectricity and hydrogen. Currently, 1 GW of renewable energy is generated at mine sites worldwide, and another 1 GW is under construction.

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

On the image below: K-Feldspar alteration in metamorphic rocks, from a project in Oaxaca. Picture by Jorge Cirett.

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

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By Jorge Cirett

During the 46th week of the year (November 11th to November 17th, 2019), at least 23 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, mining investments in Mexico decreased from 8 billion dollars in 2018 to 5 billion dollars in 2019. Camimex held a fiscal seminar in Queretaro. Almaden Minerals published a letter on indigenous population around the Ixtaca project in Puebla. Promperú organized in Hermosillo, Sonora, a Commercial Mission of suppliers to mining in Peru. The top ten silver miners in Mexico produced 39.8 M Oz in the third quarter 2019. The mining industry in Mexico has been subject in the past few years of regulatory hurdles that are having a negative effect in investment in the sector, the last one being the decision by SEMARNAT not to authorize the MIA on the Ixtaca project in Puebla until there is a resolution on a legal suit on a piece of land no longer held by the company running the project.  ON EXPLORATION, in Sonora, Evrim updated on exploration of the El Llanito del Nogal property; Magna Gold reported assay results from four more holes at Mercedes. In Sinaloa, Vizsla Resources released high-grade results from rock channel sampling at Panuco.  ON MINING, Premier Gold, Golden Minerals, Starcore International, Americas Gold and Silver, Sierra Metals, Odyssey Marine Exploration and Fortuna Silver presented third quarter 2019 results. Consolidated Zinc and Industrias Peñoles signed an offtake agreement on zinc concentrate. ON FINANCING, Tamino Minerals informed on trading volumes. Mexican Gold received TSX approval for the listing of 50 M warrants from a previous financing. Colibri Resources entered into a loan agreement with Agnico Eagle for $300 K.  ON RESOURCES AND DEVELOPMENT, Defiance Silver is to start a two-phase technical program at San Acacio, Zacatecas. Endeavour Silver reported positive drill results on recently acquired El Curso concession within its Guanaceví property. Peñoles is to invest $70 M at its processing facilities in Torreon. SilverCrest released high-grade results from drilling at the Babi Vista vein at Las Chispas, in Sonora. Bacanora Lithium updated on project development on its Sonora project. ON DEALS AND CORPORATE ISSUES, Evrim signed an agreement with San Marco Resources to acquire the Suanse property in Sonora. Colibri Resources extended an agreement with Agnico Eagle on the disposal of Colibri’s share on the Pitaya project in Sonora.  ON SOCIAL RESPONSIBILITY. Peñoles is conducting courses for children and adults at its Torreon community center. Ternium is organizing health festivals in Nuevo Leon, Coahuila, Jalisco, Michoacan, Puebla and San Luis Potosi. Argonaut sponsored the third edition of the La Colorada race, within the pit benches at the mine in Sonora. The “Doctor Vagón”  itinerant health clinic sponsored by Grupo Mexico provided service to 550 persons in Gomez Palacio, Durango. La Brisa mining company provided cleaning equipment to the Topia community in Durango. Peñoles mining units source 35% of its energy requirements by removable sources, and expects to reach 100% by 2028.

ON MEXICO ISSUES

  • During 2019 investments in the mining sector are to reach five billion (5 mil millones) dollars, according to Francisco Quiroga, Subsecretary of Mining. That’s a decrease from the eight billion (8 mil millones) invested in 2018.
  • Camimex organized the Seminario Fiscal de la Industria Minera in Queretaro. Camimex compromise is complete on its involvement on the “mesa de diálogo” (dialogue meetings) with the federal government, where proposals to incentivize investment are to be exposed, checking on subjects like the fiscal situation, regulatory environment and security. The head of Camimex, Karen Flores, explained that on the Fraser Institute study Mexico is number 71 of 83 jurisdictions on the fiscal regime. Camimex is for the 100 percent deduction of exploration expenses, and the establishment of pacts of fiscal stability on a 15 to 20 year time frame, as is Peru, Chile and Argentina. In a comparative study, Mexico has the heaviest fiscal load among peers like the US (Arizona), Canada (Ontario), Peru and Chile.
  • Minera Gorrión (Almaden) published a letter on indigenous population around the Ixtaca project in Puebla. Although indigenous persons inhabit the area, there is not such an indigenous community within the area of influence of the project. The company stresses the misinformation produced by some activists groups with total impunity, and reaffirms its confidence on institutions and the rule of law.
  • Promperú organized in Hermosillo, Sonora, its II Commercial Mission of Suppliers to Mining in Peru. Several conferences were presented by members of the mining communities and governments of both countries.
  • The top 10 silver mining companies in Mexico had a solid third quarter. During the period these companies produced 39.8 M Oz, compared with 39.0 M Oz produced on the same quarter a year ago. The top producer is Industrias Peñoles, with 15.3 M Oz almost 40% of that amount and 2.2 M Oz less than the same quarter 2018 (Fresnillo, Saucito, San julian, Sabinas). Newmont was the second largest producer with 7.4 M Oz produced at Peñasquito. Other large producers comprise Southern Copper with 3.9 M Oz (undisclosed units), Pan American with 3.6 M Oz (La Colorada), First Majestic (Santa Elena, San Dimas, among others), Coeur Mining with 1.7 M Oz (Palmarejo), Fortuna Silver with 1.7 M Oz Ag (San José), Minera Frisco 1.1 M Oz (El Coronel, San Felipe, Tayahua, San Francisco del Oro, Concheño and Ocampo), Endeavour Silver 900 K Oz (El Cubo, Bolañitos, Guanceví, and El Compás) and Agnico Eagle 800 K Oz (Pinos Altos).
  • Alberto Aguilar, a respected columnist in business circles, elaborated on the hurdles the mining industry is going through with the current federal administration (it fell 3.7% on the third quarter, 2019). Among the issues mentioned is the contraction in mineral production as a result of the imposition of new taxes on mining in 2014, the investment of only 5 billion dollars in 2019 (8 billion in 2018), no concessions have been granted in 2019 and the recurrent illegal blockades without sign of easing. The latest hurdle thrown at the industry is the resolution by SEMARNAT (the Mexican environmental agency) that the Manifestation on Environmental Impact (MIA) for the Ixtaca project in Puebla was not to be granted until a legal suit on a claim no longer held by Minera Gorrion (Almaden Minerals) reaches a resolution. Exploration expenses so far have been $40 M dollars and another $117 M are still to be spent, along with $1.1 B (One billion) to be invested in eleven years (GPM Note.- The head of SEMARNAT, Victor Toledo, is known for its public and vocal anti-mining stance).

ON EXPLORATION

  • Vizsla Resources Corp. released high-grade channel sampling at its Panuco property in Sinaloa. The sampling locations are widespread within the property and the highlighted results comprise: 0.9 m @ 1,860 gpt Ag, 14.55 gpt Au at the Napoleon vein; 0.5 m @ 1,900 gpt Ag, 29.30 gpt Au at the San Antonio-Cordon de Oro vein; 3.6 m @ 691 gpt Ag, 7.00 gpt Au at the San Carlos-Animas vein; 5.95 m @ 584 gpt Ag, 3.97 gpt Au. Veins in the project have lengths of up to 2.8 km, with known ore shoots of up to 500 m in length.
  • Evrim Resources Corp. updated the description on its El Llanito del Nogal property in Sonora. The Suanse porphyry target, is a 1 Km by 600 m area of propylitic to potassic alteration. Soil sampling outlined a 600 m by 500 m Cu anomaly (>100 ppm) in areas of sheeted quartz-chalcopyrite-chlorite-magnetite veins. A ground magnetic survey outlined a donut-shaped anomaly 400 m in diameter and roughly coincident with the soil anomaly. The soil and magnetic anomalies extend northward onto the Suanse claim (see deals section below) where strong argillic, advanced argillic along with vuggy and massive quartz alteration are interpreted as a partially eroded lithocap.
  • Magna Gold Corp. reported assay results on the last four RC holes drilled at the La Lamosa target on its Mercedes project in Sonora. Highlighted intervals comprise: 38.10 m @ 0.67 gpt Au, 13.2 gpt Ag (including 6.10 m @ 1.43 gpt Au, 42.9 gpt Ag); 28.96 m @ 0.76 gpt Au, 8.9 gpt Ag (including 7.62 m @ 1.06 gpt Au, 9.3 gpt Ag); 21.34 m @ 1.61 gpt Au, 2.2 gpt Ag (including 3.05 m @ 6.99 gpt Au, 3.9 gpt Ag); 21.34 m @ 1.21 gpt Au, 11.8 gpt Ag (including 3.05 m @ 4.26 gpt Au). Other targets to follow up include the 600 m long La Lamosa East projection, the Mina de Oro 300 m by 150 m silicified/argillized andesite and rhyodacite, the Salto Colorado breccia 400 m by 150 m in size and Noche Buena, forming a prominent ridge in a 900 m by 800 m area with tourmaline breccias.

ON MINING

  • Premier Gold Mines Ltd. Reported operating results for the third quarter 2019, including figures from its operations in Mexico. At Mercedes, in Sonora, 159.4 K tonnes were milled @ 2.94 gpt Au, 22.6 gpt Ag, recovering 95.9% Au, 32.3% Ag to produce 14,481 Oz Au, 37.5 K Oz Ag at co-product cash cost $1,095 per Oz Au, and co-product AISC $1,354 Oz Au.
  • Golden Minerals Co. announced financial results for the third quarter 2019. The company had revenue of US$1.9 M and a net operating margin of $1.3 M related to the lease of the Velardeña oxide plant to Hecla Mining Co.. By the end of the period the company had cash and cash equivalents of $2.9 M. During October an agreement was achieved with Magellan Gold Corp. to option a 100% interest in the Santa Maria and Las Marias exploration properties in Chihuahua.
  • Consolidated Zinc Ltd. signed and offtake agreement with Industrias Peñoles S.A. de C.V. for zinc concentrate produced from the Plomosas mine to December 2020, with an option to be extended for a further two years.
  • Starcore International Mines Ltd. released production results from its San Martin mine in Queretaro for the three months ended on October 31, 2019. During the period 54.1 K tonnes were milled @ 1.78 gpt Au, 34.2 gpt Ag, with a recovery of 87.35% Au, 52.27% Ag to produce 3,050 Oz AuEq.
  • Americas Gold and Silver Corp. reported consolidated and operational results for Q3 2019, with undisclosed figures from its Mexican operations (Cosalá, Sinaloa).
  • Sierra Metals Inc. reported third quarter 2019 results, including information from its Mexican operations. The company is approaching is production target of 4,250 tpd at Bolivar and 1,200 tpd at Cusi, both in Chihuahua. Bolivar’s cash cost per CuEq Lb was $1.40, and the AISC $2.53. Cusi’s cash cost was $18.77 and AISC $24.60. During the period 9,923 m were drilled from the surface at Bolivar, and 3,220 m within the Cusi mine. At the end of the period cash and cash equivalents were $40.1 M, with a net debt of $50.9 M.
  • Odyssey Marine Exploration Inc. reported results for the third quarter 2019. Net loss for the period was $4.2 M due to several non-recurring items (Exploraciones Oceánicas project, Baja California Sur).
  • Fortuna Silver Mines Inc. reported third quarter results for 2019, including figures from its Mexican operations. At San José, in Oaxaca, 268 K tonnes were milled at a rate of 3,046 tpd and a grade of 219 gpt Ag, 1.40 gpt Au, recovering 91% Ag, 91% Au to produce 1.7 M Oz Ag and 10,942 Oz Au at cash cost $7.70 per Oz AgEq and an AISC of $10.80 per Oz AgEq.

ON FINANCING

  • Tamino Minerals Inc. informed that during the third week of September the company traded 145 M shares with a volume of US $1.1 M and a price per share appreciation of US$0.01” (El Volcan, Sonora).
  • Mexican Gold Corp. has received TSX Venture Exchange approval for the listing of 50 M warrants from the non-brokered private placement announced in past July.
  • Colibri Resource Corp. has entered into a loan agreement with Agnico Eagle Mines Ltd. For proceeds of US$300 K. The loan has a 2 year term at a 10% interest rate and proceeds are to be used on the Evelyin project in Sonora.

ON RESOURCES AND DEVELOPMENT

  • Defiance Silver Corp. is to start a two-phase technical program at its San Acacio property in Zacatecas. The program envisages evaluating the San Acacio resource at depth and brownfield targets on the Veta Grande system.
  • Endeavour Silver Corp. reported positive initial drill results for El Curso property, adjacent to Endeavour’s Guanaceví mine in Durango. The property includes the Santacruz vein, which is between two Endeavour’s developments. Drilling highlights comprise true width (tw) intervals: 5.2 m @ 0.75 gpt Au, 465 gpt Ag; 2.6 m @ 1.23 gpt Au, 558 gpt Ag; 2.1 m @ 2.51 gpt Au, 935 gpt Ag; 2.5 m @ 0.40 gpt Au, 204 gpt Ag; 5.1 m @ 3.07 gpt Au, 1,182 gpt Ag (including 0.5 m @ 15.22 gpt Au, 5,372 gpt Ag); 4.3 m @ 2.2 gpt Au, 1,021 gpt Ag; 2.7 m @ 1.37 gpt Au, 355 gpt Ag; 6.2 m @ 1.70 gpt Au, 635 gpt Ag.
  • Industrias Peñoles S.A.B de C.V. is to invest US$70 M in its Met-Mex installations (in Torreon, Coahuila) to better the silver recovery in zinc concentrates. In 2018, the company commissioned a US$327 M modification on the plant that avoids the generation of additional sulphuric acid by direct concentrate leaching instead of roasting, augmenting the capacity from 240 K to 360 K tonnes of zinc.
  • SilverCrest Metals Inc. announced expansion drill results from the Babi Vista vein in the Babicanora area of the Las Chispas project in Sonora. The highlighted true width (tw) intervals from these 17 holes comprise: 2.3 m @ 2.27 gpt Au, 215 gpt Ag; 0.4 m @ 3.55 gpt Au, 385 gpt Ag; 0.9 m @ 4.86 gpt Au, 600 gpt Ag; 0.4 m @ 1.10 gpt Au, 187 gpt Ag; 0.6 m @ 1.09 gpt Au, 92 gpt Ag; 2.0 m @ 1.84 gpt Au, 433 gpt Au, 1.2 m @ 2.56 gpt Au, 296 gpt Ag; 8.8 m @ 7.36 gpt Au, 584 gpt Ag (including 0.3 m @ 120.50 gpt Au, 9,510 gpt Ag; 0.7 m @ 18.15 gpt Au, 1,495 gpt Ag); 6.6 m @ 3.37 gpt Au, 250 gpt Ag (including 0.4 m @ 32.70 gpt Au, 2,940 gpt Ag). So far the high-grade footprint is 150 m along the strike of the vein and 200 m to depth, open in most directions, averaging 2.2 m @ 4.70 gpt Au, 401 gpt Ag.
  • Bacanora Lithium plc. updated on project activities at its Sonora Lithium project. Final design work for the mine site, infrastructure, concentrator and kiln sections of the processing plant is in progress. Detailed engineering plans for the design of the front-end concentrator and mechanical processing is underway, as well as the pyrometallurgical engineering, while the hydrometallurgical plant, including the production of the final battery grade lithium product will be engineered by Ganfeng.

ON DEALS AND CORPORATE ISSUES

  • Evrim Resources Corp. signed an agreement with San Marco Resources to acquire the Suanse property in Sonora. The 1,115 hectares property is within Evrim’s Llano del Nogal claim. Evrim can acquire 100% interest in the project by making total cash payments of $75 K and granting San Marco a 1% royalty half of which can be repurchased for $1 M. Cash payments are: $25 K on signing, $25 K on signing a JV or partnership with third parties and $25 K upon completion of 1,000 m of drilling.
  • Colibri Resource Corp. granted a two-year extension to its agreement with Agnico Eagle Mines Ltd., allowing Agnico to exclusively explore opportunities to dispose of Colibri’s working interest in its JV on the 5,564 hectares Pitaya project in Sonora.

ON SOCIAL RESPONSIBILITY

  • The Peñoles Community Center (Centro Comunitario Peñoles) in Torreon, Coahuila, is conducting courses for children and adults, including English, music, drawing, tae kwon do, tae chi and modern dance and dance for weight reduction.
  • Ternium organizes the Health Festivals (Ferias de La Salud) in Nuevo Leon, Coahuila, Colima, Jalisco, Michoacan, Puebla and San Luis Potosi, in coordination with several organizations and government institutions. Each year almost 6,000 persons receive this benefit, including cost-free diverse medical examinations (like sight, Papanicolau, mamographies) and flu shots.
  • The La Colorada race was held in Sonora for the third time. The race sponsored by Argonaut Gold was attended by hundreds of runners on the benches of La Colorada mine.
  • The technical school Roberto Rocca (partly supported by Ternium) is to represent Mexico in the World’s Educative Robotics Tournament, to be held in Shanghai, China.
  • The “Doctor Vagón” program sponsored by the Grupo Mexico Foundation (a train adapted for medical services) was four days at Gomez Palacio, Durango, with the aid of the local municipality. During that time 2,200 services were provided to the 550 persons that registered to the effect.
  • In Topia, Durango, Minera La Brisa supported the municipality providing cleaning equipment.
  • Industrias Mineras Peñoles announced that to 2018 up to 35% of the energy requirements at its mining units is fulfilled by renewable energy sources. The company is striving to reach at least a 50% in 2020 and to be completely reliant on renewable energy sources by 2028.

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

On the image below: Gold recovered by artisanal methods from orogenic style quartz veins in Oaxaca.. Picture by Jorge Cirett.

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

By Jorge Cirett

During the 14th week of the year (April 1st to April 7th, 2019), at least 24 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, an initiative with anti-mining tones was discarded by the Senate. The undersecretary of mining stated that no changes to the mining law, or tax increases in mining are envisaged by AMLO’s administration, and that the focus is to be in decreasing the regulatory load to incentivize the sector. On the other hand, he stated that regulations have to be actualized, highlighting community consultations. ON EXPLORATION, In Sonora, Minaurum presented drilling results from several vein systems at its Alamos Silver property; Aloro submitted a new environmental permit for its Venados project. In Chihuahua, Sable Resources released a thick, good grade intercept from one hole at its Margarita project. In Veracruz, Azucar Metals disclosed good Au-Cu results from one more hole at its El Cobre property.  ON MINING, Consolidated Zinc has a new toll agreement for its Plomosas mine in Chihuahua. Endeavour Silver achieved commercial production at its El Compas mine in Zacatecas. Telson Mining released historic metallurgical test results that support higher precious metal recoveries for its Campo Morado mine in Guerrero. Alamos Gold has produced 2 M Oz Au at the Mulatos mine in Sonora. Torex Gold produced 77.8 K Oz Au during the last quarter at its Limon-Guajes mine in Guerrero. GoGold produced 288.7 K Oz Ag in Parral, Chihuahua. Arcelor Mittal invested over US$1 B on its Michoacan plant in 2018.   ON FINANCING, Sonoro Metals raised $650K. Defiance Silver closed the second tranche of its financing, raising $1.06 M. Sable Resources announced an offering to raise up to $1.5 M.  ON RESOURCES AND DEVELOPMENT, Mag Silver disclosed development advances at Juanicipio, Zacatecas. Sierra Metals disclosed positive drill results from testing of a geophysical anomaly at Bolivar, Chihuahua. Evrim informed on the increase in resources by First Majestic at the Ermitaño project in Sonora.  ON DEALS AND CORPORATE ISSUES, Alamos Gold sold a portfolio of non-core royalties. Bacanora Lithium continues to negotiate with Oman for funding of the Sonora Lithium project. Premier Gold divested of several properties, including the Santa Teresa property in Baja California. American Silver and Pershing Gold continue on its path to business combination. GoldCorp’s shareholders support the business combination with Newmont.  

ON MEXICO ISSUES

  • An initiative with anti-mining tones was discarded by the senate. The initiative presented on November 2018 by the now deceased senator Angelica Garcia, caused a fall in the value of mining companies in the Mexican stock market at the time of its presentation. The Comisiones Unidas de Mineria y Desarrollo Regional y de Estudios Legislativos discarded the proposal on March 27th, based on multiple deficiencies regarding operational overlapping of several government organisms and the lack of well-defined procedures on environmental and negative social impact issues.
  • Francisco Quiroga, undersecretary of mining, in an interview with El Financiero Bloomberg, stated that the Federal Government is not to realize changes to the Mining Law, nor to impose a tax increase in the mining industry. The priority, he said, is to reduce the regulatory load and to augment the financing of projects. He added that regulations have to be actualized in maters like community consults, but that there is no need to change the Mining Law. He also pointed that there are not going to be legal changes on the direct foreign investment in mining.

ON EXPLORATION

  • Minaurum Gold Inc. informed that three of the new vein systems at its Alamos Silver project host significant mineralisation at depth, and drilling has intersected five previously unknown blind veins. To date, 9 of the 15 vein systems identified have been drilled, and Minaurum plans to put at least one hole on each of these before turning to follow-up phase III drilling. Highlighted results from phase II drilling of new veins comprise: 9.6 m @ 198 gpt Ag, 0.17% Cu, 0.2% Pb, 0.9% Zn (or 269 gpt AgEq); 0.9 m @ 302 gpt Ag, 0.21% Cu, 0.5% Pb, 0.8% Zn (or 383 gpt AgEq); 2.05 m @ 181 gpt Ag, 0.15% Cu, 1.6% Pb, 1.5% Zn (or 338 gpt AgEq); 2.85 m @ 25 gpt Ag, 2.3% Pb, 10.6% Zn (or 618 gpt AgEq); 0.9 m @ 391 gpt Ag; 0.11% Cu, 0.4% Pb, 0.3% Zn (or 548 gpt AgEq). Good drill core mineralised intercepts have been obtained from the Minas Nuevas, Promontorio, San Jose, Europa-Guadalupe, Nueva Europa, Amalia, Tigre, Ana, Travesia and El Creston vein systems.
  • Sable Resources Ltd. announced results from one more drill hole at its Margarita project in Chihuahua. This drill hole is on the same section line than a deep hole from the previous drilling campaign, and extends mineralisation 350 m NW from other holes. Highlighted intervals comprise 37.35 m @ 117 gpt Ag, 0.7% Zn, 0.2% Pb, 0.17 gpt Au (or 177 gpt AgEq), including 0.90 m @ 353 gpt Ag, 0.6% Zn, 0.1% Pb (391 gpt AgEq) and 5.50 m @ 400 gpt Ag, 3.0% Zn, 1.1% Pb, 1.07 gpt Au (or 689 gpt AgEq), including 1.65 m @ 790 gpt Ag, 0.4% Zn, 2.0% Pb, 2.92 gpt Au (or 1,122 gpt AgEq). “This hole was intended to test close to surface mineralisation above low-grade mineralisation intercepted at depth in Hole 3 and we are delighted at hitting such strong, thick mineralisation.”
  • Aloro Mining Corp. submitted to SEMARNAT a new environmental permit for approval of drilling and road construction at its Los Venados property in Sonora. “Aloro was able to apply for the new permit after recently negotiating a new 3 year – 50 drill hole surface access agreement with the Mulatos Ejido.” The new permit is focused on the blind target in the SE corner of the concession, where a drill hole from the last campaign intersected 32 m of strong silicic alteration with brecciated vuggy quartz and sulfides, and 4.5 m @ 1.57 gpt Au.
  • Azucar Minerals Ltd. released results from one more drill hole at its El Cobre project in Veracruz. The hole, drilled on the Raya Tembrillo target in the northern edge of the Villa Rica zone, intercepted hypogene porphyry mineralisation from surface, with 168.1 m @ 0.56 gpt Au, 0.29% Cu, including 77.5 m @ 0.78 gpt Au, 0.35% Cu, which in turn include 27.95 m @ 1.53 gpt Au, 0.43% Cu and 12.1 m @ 2.04 gpt Au, 0.58% Cu.     

ON MINING

  • Consolidated Zinc Ltd. announced the execution of a new toll agreement for its Plomosas mine in Chihuahua, whilst still negotiating new offtake agreements for the concentrates. On March 22, CZL received the notification of termination of its toll agreement with Grupo Mexico (60-day termination notice), and by March 29 a toll agreement was executed with Triturado y Minerales La Piedrera S.A. de C.V. for processing of the ore at its Aldama concentrator facility. The Aldama plant has a 300 tonnes per day (or tpd) capacity that Plomosas can fully utilize. The contract is for 18 months with 6 months extension for CZL. “CZL will process Plomosas ore at both the Aldama Plant and Grupo Mexico Santa Eulalia concentrators for approximately a month under its contracts”. Negotiations are ongoing with a number of parties, “including Industrias Penoles S.A.B. de C.V. and Trafigura Beheer BV, to sell the Plomosas Zinc and Lead Concentrates”.
  • Endeavour Silver Corp. informed that commercial production was achieved in mid-March at El Compas mine in Zacatecas, its fourth mine in Mexico. “El Compas has a nominal plant capacity of 250 tonnes per day (tpd) at estimated recovery rates of 83% gold and 50% silver. From February 18 to March 17, the operation processed development ore from stockpile at an average production rate of 232 tpd (93% of design rate) and recovery rates of 73.5% gold (88% of design rate) and 45.5% silver (63% of design rate but only 13% of revenue)”.
  • Telson Mining Corp. released results of historic Leachox Process testing to try to increase Au and Ag recoveries on its Campo Morado mine tailings material, in Guerrero. The 2013 report by Maelgwyn Mineral Services for Nyrstar (then the mine operator) stated a maximum recovery of 65% Au, 75% Ag for 20 microns grinded material, and 45% Au, 81% Ag for 40 microns grinded material. “We could improve recoveries from current levels of gold at 15-20% and silver 30-40%, which would significantly increase the mines profitability by increasing the ounces of gold and silver produced at Campo Morado.”
  • Alamos Gold Inc. announced that its Mulatos mine in Sonora produced its two millionth ounce of gold in March 2019. “This milestone also marks the end of the 5% NSR royalty that the operation has been paying since the start of production in 2005. At the current gold price, this represents a savings of approximately $65 per ounce, which has already been incorporated into previously disclosed guidance…… The Mulatos operation has been an incredible success story. It started producing gold in 2005 with approximately a seven-year mine life and 14 years later, the mine still has six years of reserves ahead of it.”
  • Torex Gold Resources Inc. reported that in Q1, 2019, a total of 77,800 Oz Au were produced at its El Limon-Guajes mine in Guerrero. “Debt principal was reduced by $18.6 million, and cash balances at the end of the quarter were $119 million, including $26.8 million of restricted cash.” Field trials are underway for the first piece of equipment for the proprietary Muckahi mining system.
  • Gogold Resources Corp. announced record production of 288.7 K Oz Ag and 1,613 Oz Au  (or 424.2 K Oz AgEq) from its Parral tailings operation in Chihuahua.
  • Arcelor Mittal. invested $1,635 M during 2018 in Michoacan, while looking to expand its production capacity in Mexico, including a new line of sheeted steel plate, mining, and the modernization of its production plant. The new installations are located in Lazaro Cardenas, Michoacan, to take advantage of the Economic Special Zones to produce 5.3 M tonnes of steel, focusing on the higher aggregate value of sheet steel plate in the automotive and aerospace industries.

ON FINANCING

  • Sonoro Metals Corp. completed a non-brokered private placement, for gross proceeds of $650 K (Cerro Caliche, Sonora).
  • Defiance Silver Corp. closed the second tranche of its previously announced private placement, for gross proceeds of $1.06 M, paying $21.3 K finder’s fees and emitting 106.5 K non-transferable broker warrants (San Acacio, Zacatecas).
  • Sable Resources Ltd. announced a non-brokered offering that could raise up to $1.5 M (Margarita, Chihuahua).

ON RESOURCES AND DEVELOPMENT

  • Mag Silver Corp. disclosed audited consolidated results for 2018. At Juanicipio, in Zacatecas, operated by partner Fresnillo PLC, mine construction continues with “developing the three internal spiral footwall ramps at depth to access the full strike length of the Valdecañas Vein system; excavating and constructing the underground crushing chamber; advancing the conveyor ramp from both ends to and from the planned mill site….. integrating additional ventilation and other associated underground infrastructure, and progressing the construction of surface infrastructure facilities”. During 2018, 6,636 m of underground development were completed, taking the total to date to over 18.5 km. Some highlighted intersections of the 46,060 m of drilling during the year comprise: 11.6 m (true width, or TW) @ 783 gpt Ag, 2.57 gpt Au, 6.5% Pb, 9.5% Zn (Deep Zone West); 6.3 m @ 246 gpt Ag, 1.78 gpt Au, 7.2% Pb, 11.6% Zn, 0.4% Cu (Deep Zone East); 3.2 m @ 472 gpt Ag, 0.31 gpt Au, 0.4% Pb, 0.4% Zn (New Pre-Anticipada vein); 3.0 m (core length) @ 392 gpt Ag, 5.6 gpt Au. Mag remains well funded, with cash and cash equivalents of $130 M by the end of the year.
  • Sierra Metals Inc. reported positive results from drill testing a geophysical anomaly at the Bolivar West zone of their Bolivar mine in Chihuahua. Drilling of the Titan 24 chargeability  target identified and defined a new zone named West Extension to the Bolivar West zone, which is an extension of the Bolivar West structure. Highlighted drill intercepts comprise: 4 m @ 140 gpt Ag, 2.29% Cu, 7.6% Zn, 0.09 gpt Au (or 6.56% CuEq); 20 m @ 15 gpt Ag, 1.32% Cu, 1.16 gpt Au (or 2.42% ZnEq); 3 m @ 36 gpt Ag, 0.87% Cu, 8.5% Zn (or 4.63% CuEq).
  • Evrim Resources Corp. informed that First Majestic Silver Corp. announced a 20% increase in inferred resources over the maiden resource estimation of 2018 at the Ermitaño property in Sonora. A total of 8.81 M AgEq Oz (or 119 K AuEq Oz) were upgraded to indicated status, while 48.98 M AgEq Oz (or 659 K AuEq Oz) are defined as inferred resources. First Majestic is planning to complete 16,000 m of drilling during 2019.

ON DEALS AND CORPORATE ISSUES

  • Alamos Gold Inc. reported entering into an agreement for the sale of a portfolio of non-core royalties to Metalla Royalty & Streaming Ltd., for proceeds of USD$8.0 M in Metalla common shares with the right to receive additional an additional USD$0.6 M upon Metalla’s exercise of the La Fortuna option. The portfolio of 18 royalties being sold is all on assets not owned by Alamos in several countries. This includes a 2% NSR royalty on the El Realito property, adjacent to the La India mine in Sonora.
  • Bacanora Lithium PLC. Announced “that it remains in active discussions with the State General Reserve Fund of Oman (“SGRF”), the sovereign wealth fund of the Sultanate of Oman, to conclude the proposed US$65M Strategic Investment Agreement and Offtake Agreement for Bacanora’s flagship Sonora Lithium Project in Mexico……. the Company remains focused on completing the funding package in Q2 2019 with a view to commissioning a chemical processing plant and commencing first production at Sonora in H2 2021”.
  • Premier Gold Mines Ltd. announced the divestment of several properties in Canada, and the Santa Teresa property in Baja California. The divestment of the properties is the result of four transactions that accrued US$1.23 M to Premier. No information was provided on the parties involved on the transactions.
  • Americas Silver Corp. and Pershing Gold Corp. announced that the  Committee on Foreign Investment in the United States  (CFIUS)  has  completed  its  review  of  the  companies’  previously  announced  business  combination and  that  they expect their business combination transaction to be completed by April 3rd.
  • GoldCorp Inc. informed that GoldCorp’s shareholders have voted overwhelmingly in favour of the combination with Newmont Mining Corp.

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, quartz druse from a breccia in a Michoacan project. Picture by Jorge Cirett.

ArcelorMittal lleva inversión extranjera siderúrgica a nivel histórico en México.- El Financiero

https://www.elfinanciero.com.mx/empresas/arcelormittal-lleva-inversion-extranjera-siderurgica-a-nivel-historico-en-mexico

El proyecto de la acerera ArcelorMittal en Michoacán, donde destinó mil millones de dólares, llevó a nivel histórico la Inversión Extranjera Directa (IED) de la industria siderúrgica en México durante 2018.

El año pasado se ejercieron en el país mil 635.1 millones de dólares, nivel muy superior a los 361.4 millones de 2017 y el más elevado que se aplica en la industria desde 2007, de acuerdo con Información de la Secretaría de Economía.

En conferencia telefónica con analistas, Aditya Mittal, director de finanzas de la empresa india, destacó que mantienen su plan de inversiones de mil millones de dólares en México, pese a los aranceles que aplicó Estados Unidos a las importaciones de acero que se fabrica en ‘suelo azteca’.

Con estos recursos, la multinacional busca expandir su capacidad productiva en México, incluida una nueva línea de laminación, minería y la modernización de activos.

Según Aditya Mittal, el objetivo de dicha inversión es atender el mercado interno. La trasnacional importa 8 mil toneladas de acero al año para vender en México.

El ejecutivo consideró que con líneas como las de laminación, la multinacional podría obtener mejores márgenes de ganancia, además de volverse proveedores directos de industrias de gran crecimiento en el país, como la automotriz y la aeroespacial.

Las nuevas instalaciones del grupo se ubicarán cerca del Puerto de Lázaro Cárdenas, Michoacán, a fin de aprovechar las Zonas Económicas Especiales (ZEE).

En su reporte financiero al cuarto trimestre de 2018, la empresa detalló que con la nueva planta de Michoacán, su división México tendrá una capacidad de producción de 5.3 millones de toneladas, con lo cual mejorará la participación de productos de mayor valor agregado en sus ventas totales.

“Con el proyecto (de Michoacán) produciremos 2.5 millones de toneladas de acero laminado plano, 1.8 millones de acero largo y el resto formado en losas semi acabadas. Entrará en operación en el segundo trimestre del 2020”, detalló la multinacional.