During the 22nd week of the year (May 30th to June 5st, 2023), at least 11 press releases were announced by companies working in Mexico, with three reporting resources and developments of their properties, two communicating production and financial results, two disclosing deals and corporate issues, two informing on exploration results, one announcing financing issues, and one commenting on Mexican issues. ON MEXICO ISSUES, GoGold and Vizsla reported the best drilling intercepts in Mexico on the first week of June, 2023. ON EXPLORATION, In Sonora, Prismo commenced a trenching program at its Los Pavitos project. In Oaxaca, Vortex completed the field work for the environmental baseline study, and advanced surface geological investigations at its Zaachila project. ON MINING, Bear Creek reported Q1, 2023 production results from its Mercedes mine in Sonora. Minera Alamos reported Q1, 2023 selected financial results. ON FINANCING, Minera Alamos announced a USD $25M construction financing package termsheet executed for its Cerro de Oro Gold Project, Zacatecas. ON RESOURCES AND DEVELOPMENT, GoGold announced additional drilling results from Los Ricos South, within the Eagle Deposit in Jalisco. Vizsla reported results from five holes drilled on the recently discovered La Luisa Vein at its Panuco property in Sinaloa. Zacatecas Silver increased its Inferred Mineral Resource Estimate at the Panuco South and North Deposits within its Zacatecas property in Zacatecas State. ON DEALS AND CORPORATE ISSUES, Chesapeake granted stock options to its former Vice President Investor Relations & Corporate Development (Metates project, Durango). Golden Tag received approval from Mexico´s antitrust agency, the Comisión Federal de Competencia Económica (COFECE) on May 25, 2023, for the previously announced acquisition of the La Parrilla Silver Mine Complex in Durango. ON SOCIAL RESPONSIBILITY, no relevant news.
ON MEXICO ISSUE
GoGold Resources Inc., and Vizsla Silver Corp., reported the best drilling intercepts in Mexico on the first week of June, 2023. Details are shown in the table below:
Prismo Metals Inc., commenced a trenching program at its Los Pavitos project in Sonora to better define the orientation and full width of the mineralized structures prior to starting the drill campaign. Samples collected will be sent to the lab for analysis and results will be released by the middle of June, 2023.
Vortex Metals Inc., completed the field work for the environmental baseline study, and advanced surface geological investigations at its Zaachila project in Oaxaca. The field work commenced on May 16th and included biological studies and surface geological work. “This information is foundational in the preparation of the Environmental Impact Statement that SEMARNAT requires for the evaluation and approval of exploration drilling”. The results of this study will be an integral part of the Environmental Impact Assessment that Vortex Metals will submit in the coming weeks, bringing us one step closer to advancing the Zaachila copper project for mineral exploration of the previously identified significant anomalous copper mineralization.”
Bear Creek Mining Corporation reported Q1, 2023 production results from its Mercedes mine in Sonora. The company mined 133,621 tonnes with an average grade of 2.93 g/t Au and processed 134,487 tonnes with an average grade of 2.91 g/t Au and metallurgical recovery of 95.96% to produce 12,038 Oz Au. The company also reported 9,304 Oz Au sold and 3,182 Oz Au streamed. Cash and AISC per Oz Au sold and streamed were USD $1,386 and USD $ 1,670 respectively. Bear Creek recorded revenue of USD $24.3M from the sale of gold and silver; cost of goods sold of USD $14.4M; depletion and amortization of USD $11.2M; and gross loss of USD $1.3M.
Minera Alamos Inc., reported Q1, 2023 selected financial results. It reported revenues of CAD $6.78M; cost of goods sold of CAD $2.25M; net income of CAD $1.48M; cash and cash equivalents of CAD $10.2M; and working capital of CAD $19.89M.
Minera Alamos Inc., announced a USD $25M construction financing package termsheet executed for its Cerro de Oro Gold Project, Zacatecas. The Company has signed a termsheet for a USD $15M Loan Facility and USD $10M Royalty that is expected to close on or around July 14th upon signing of definitive documentation as well as board and regulatory approvals.
ON RESOURCES AND DEVELOPMENT
GoGold Resources Inc., announced additional drilling results from Los Ricos South, within the Eagle Deposit in Jalisco. Drilling highlights include hole LRGAG-22-164 with 3.21 g/t Au and 33 g/t Ag (3.64 g/t AuEq or 273 g/t AgEq) over 22.1m, including 20.21 g/t Au and 87 g/t Ag (21.37 g/t AuEq or 1,603 g/t AgEq) over 3.2m; hole LRGAG-22-165 with 4.61 g/t Au and 780 g/t Ag (15.01 g/t AuEq or 1,126 g/t AgEq) over 50m, including 22.9 g/t Au and 4,617 g/t Ag (84.45 g/t AuEq or 6,334 g/t AgEq) over 7.8m, including 59.98 g/t Au and 11,858 g/t Ag (218 g/t AuEq or 16,357 g/t AgEq) over 2.9m, including 201 g/t Au and 31,747 g/t Ag (624.29 g/t AuEq or 46,822 g/t AgEq) over 0.8m; hole LRGAG-22-172 with 3.27 g/t Au and 124 g/t Ag (4.92 g/t AuEq or 369 g/t AgEq) over 53.8m, including 8.09 g/t Au and 193 g/t Ag (10.67 g/t AuEq or 800 g/t AgEq) over 19.4m, including 13.72 g/t Au and 289 g/t Ag (17.57 g/t AuEq or 1,318 g/t AgEq) over 5.2m; hole LRGAG-22-173 with 3.67 g/t Au and 282 g/t Ag (7.43 g/t AuEq or 557 g/t AgEq) over 40.5m, including 5.35 g/t Au and 1,267 g/t Ag (22.24 g/t AuEq or 1,668 g/t AgEq) over 4.1m, including 8.9 g/t Au and 1,879 g/t Ag (33.95 g/t AuEq or 2,546 g/t AgEq) over 1.4m, including 11.8 g/t Au and 1,430 g/t Ag (30.87 g/t AuEq or 2,315 g/t AgEq) over 1m; hole LRGAG-22-176 with 2.54 g/t Au and 120 g/t Ag (4.14 g/t AuEq or 310 g/t AgEq) over 15.9m, including 9.03 g/t Au and 627 g/t Ag (17.4 g/t AuEq or 1,305 g/t AgEq) over 1.6m; and hole LRGAG-22-177 with 1.21 g/t Au and 145 g/t Ag (3.15 g/t AuEq or 236 g/t AgEq) over 31.7m, including 3.03 g/t Au and 393 g/t Ag (8.27 g/t AuEq or 620 g/t AgEq) over 9.8m, including 10.15 g/t Au and 1,357 g/t Ag (28.25 g/t AuEq or 2,118 g/t AgEq) over 2.3m. “The Eagle Deposit adjoins the Main Deposit and represents a northern extension of the previously defined Mineral Resource Estimate in the Los Ricos South Preliminary Economic Assessment (PEA).”
Vizsla Silver Corp., reported results from five holes drilled on the recently discovered La Luisa Vein at its Panuco property in Sinaloa. Drilling highlights (true widths reported) include hole NP-23-362 with 50 g/t Ag, 0.41 g/t Au, 0.5% Pb, and 2% Zn (163 g/t AgEq) over 0.8m, plus 372 g/t Ag, 5.82 g/t Au, 2.1% Pb, and 3.1% Zn (916 g/t AgEq) over 3.05m, including 1,418 g/t Ag, 21.54 g/t Au, 5.3% Pb, and 6.4% Zn (3,162 g/t AgEq) over 0.59m, plus 93 g/t Ag, 2.91 g/t Au, 1.4% Pb, and 2.4% Zn (410 g/t AgEq) over 5.2m, including 283 g/t Ag, 7.4 g/t Au, 5% Pb, and 3.9% Zn (1,054 g/t AgEq) over 0.76m; hole NP-23-373 with 69 g/t Ag, 3.62 g/t Au, 0.6% Pb, and 2.7% Zn (426 g/t AgEq) over 4.30m, including 210 g/t Ag, 8.09 g/t Au, 1.2% Pb, and 7% Zn (1,032 g/t AgEq) over 0.77m; and hole NP-22-375 with 593 g/t Ag, 0.78 g/t Au, 2% Pb, and 1.9% Zn (734 /t AgEq) over 1.4m. “The new drill results expand the high-grade footprint at La Luisa to 350m long by 450m down dip. Additionally, surface mapping and sampling has identified a near surface exploration target located ~600m along strike to the northwest”.
Zacatecas Silver Corp., increased by 25% its Inferred Mineral Resource Estimate at the Panuco South and North Deposits within its Zacatecas property in Zacatecas State. Updated silver Inferred Mineral Resource now consists of 0.37M tonnes of 236 g/t Ag and 0.24 g/t Au (255 g/t AgEq) for a total of 2.8M Oz Ag and 2.7K Oz Au (3M Oz AgEq) at Panuco North, and 3.04M tonnes of 166 g/t Ag and 0.17 g/t Au (179 g/t AgEq) for a total of 16.2M Oz Ag and 16.4K Oz Au (17.5M Oz AgEq) at Panuco South. Inferred Mineral Resource in both deposits are 3.41M tonnes of 173 g/t Ag and 0.18 g/t Au (187 g/t AgEq) for a total of 19M Oz Ag and 19.2K Oz Au (20.5M Oz AgEq).
ON DEALS AND CORPORATE ISSUES
Chesapeake Gold Corp., granted stock options to its former Vice President Investor Relations & Corporate Development, to purchase an aggregate of 100K common shares of the company at an exercise price of CAD $1.70 per share for a five-year term expiring May 29, 2028. The options will vest and be exercisable on the basis of 25% annually, commencing May 29, 2024, the first anniversary of the date of the grant (Metates project, Durango).
Golden Tag Resources Ltd., received approval from Mexico´s antitrust agency, the Comisión Federal de Competencia Económica (COFECE) on May 25, 2023, for the previously announced acquisition of the La Parrilla Silver Mine Complex in Durango. Golden Tag and First Majestic Silver Corp. have amended the Asset Purchase Agreement dated December 7, 2022 to reduce Golden Tag’s minimum required financing to $7.2M from $9M.
Two companies published drilling results from projects located in Mexico. GoGold’s had spectacular assays in gold and silver, with the best hole reporting 50 m grading 4.61 gpt Au, 780 gpt Ag, for 231 g*m Au, 39,010 g*m Ag. These intercepts are from holes in the Eagle zone, an area the company started testing on the second half of 2022. Vizsla’s Panuco project results are from the recently discovered La Luisa vein, located 700 m from the Napoleon resource area. The new results expand the high-grade footprint at La Luisa to 350 m long by 450 m along dip. Both properties structurally controlled low to intermediate sulfidation epithermal mineralization.
During the 21st week of the year (May 22nd to May 28th, 2023), 15 companies working in Mexico posted news releases. Four companies informed on exploration on their properties, two companies informed on Q1 2023 or full-year 2023 production/financial results. One company announced the granting of share options to directors, officers and consultants. Five companies released drilling results on their advanced properties in Durango, Chihuahua, Sinaloa, and Guerrero. Two more companies informed on the acquisition/sale of projects. ON MEXICO ISSUES, no relevant news. ON EXPLORATION, in Sonora, Aztec Minerals completed a surface exploration program at Cervantes; Infinitum copper started drilling at La Adelita. In Durango, Silver Dollar is organizing the database of the Nora project. In Oaxaca, Vortex Metals initiated surface geological work at Riqueza Marina. ON MINING, Impact Silver and Guanajuato Silver released Q1 2023 production reports. ON FINANCING, Silver Viper granted incentive stock options to directors, officers and consultants. ON RESOURCES AND DEVELOPMENT, Avino Silver released results from drilling at the Avino mine in Durango. Heliostar Metals reported drilling results from the high-grade portion of the Ana Paula deposit in Guerrero. Capitan Mining provided an exploration update on the Cruz de Piedra project in Durango. Prime Mining reported drilling results from Los Reyes in Sinaloa. Discovery Silver released results from the feasibility study drilling at Cordero, in Chihuahua. GR Silver Mining released results from step-our holes at San Marcial, which is part of the Plomosas project in Sinaloa. ON DEALS AND CORPORATE ISSUES, Tarachi Gold closed the sale of the Magistral tailings project in Durango. Silver Dollar completed the acquisition of the La Joya project in Durango. ON SOCIAL RESPONSIBILITY, Torex Gold released its 2022 ESG performance report.
ON MEXICO ISSUES
No relevant News.
Aztec Minerals Corp. received sampling results and completed its phase 1 surface exploration program at Cervantes, in Sonora. Detailed geological mapping and continued chip channel sampling of exposed road cuts were carried out. The “surface road cut sampling and detailed geologic mapping has verified the strong relationships found between the quartz feldspar porphyritic intrusive, phyllic alteration and gold mineralization… Quartz veinlet intensity mapping shows strong correlation to the drill hole gold grade-thickness”. The phase 2 exploration program comprises a reverse circulation drilling campaign to expand the California target in all directions. To date Aztec has competed over 10,500 m of drilling on 54 holes at the Cervantes project.
Silver Dollar Resources Inc. provided a progress report on the Nora project in Durango. Silver Dollar received all historical technical information from Canasil and is “organizing it into a database to analyze, interpret and then plan the next phase”. There are 13 diamond holes from Canasil’s 2020-2021 drilling campaign with a total of 3,296 m testing 500 m of the Candy structure, returning up to 3.29 m @ 6.44 gpt Au, 884 gpt Ag and 1.53 m @ 20.59 gpt Au, 1,290 gpt Ag.
Infinitum Copper Corp. commenced drilling at its 6,450 ha La Adelita property in Sonora. The 2,500 m diamond drilling program with 15 holes is designed to expand the high-grade mineralized area at the Cerro Grande zone and to test for mineralization at depth at Las Trancas zone. Drilling is aimed to extend the north-south extent of mineralization to 500 m and step out up to 700 m west of the known mineralization. At Las Trancas, 5 Km from Cerro Grande, the Sangre de Toro feature is to be tested with the first drilling in the area for the presence of a large mineralized structure.
Vortex Metals Inc. initiated surface geological work at its 12,041 ha Riqueza Marina project in Oaxaca. As the Santa Cruz Tagolaba community granted approval, Vortex can now commence work, including trenching, over an area including the Rhyolite Dome target, where substantial size and coincident gravity and magnetic anomalies along with anomalous copper values are interpreted to reflect a concealed sulfide deposit.
Impact Silver Corp. announced its financial and operating results for Q1 2023. At its Royal Mines of Zacualpan mine operations, in Estado de Mexico, 38.7 K tonnes were milled during the period, averaging 162 gpt Ag, to produce 167 K Oz Ag. Reported revenue was $5.1 M, mine operating earning $0.6 M and the net loss $0.6 M, with a working capital of $15.7 M and a cash position of $14.3 M by the end of the period.
Guanajuato Silver Company Ltd. announced financial and operating results for Q1 2023. During the period the company produced 458.8 K Oz Ag, 4,413 Oz Au, 0.91 M Lb Pb, 1.15 M Lb Zn (or 938 K Oz AgEq) at El Cubo Mines Complex, Valenciana Mines Complex and San Ignacio mine, in Guanajuato, and Topia mine, in Durango. Revenue was US$17.1 M, with a net loss of US$8.7 M. The All-in sustaining cost (AISC) was $21.83 per AgEq. Infrastructure upgrades to deliver improvement in 2023 include Falcon concentrators at El Cubo and Valenciana, the rehabilitation of the Cata Shaft already completed and the implementation of hydraulic backfilling of tailings at Valenciana.
Silver Viper Minerals Corp. granted 5.15 M incentive stock options to directors, officers and consultants to purchase up to 5.15 M common shares in the capital of Silver Viper. (La Virginia, Sonora).
ON RESOURCES AND DEVELOPMENT
Avino Silver & Gold Mines Ltd. released the results of ten drill holes from below Level 17, the current deepest workings of the Avino mine in Durango. The Avino vein has been drilled to a depth of 1,100 m downdip from the surface outcrop. A total of ten holes in this campaign totalled 3,414 m. Highlighted true width intercepts comprise 2.61 m @ 0.06 gpt Au, 75 gpt Ag, 2.58% Cu; 19.90 m @ 0.02 gpt Au, 30 gpt Ag, 1.29% Cu; 3.00 m @ 0.99 gpt Au, 34 gpt Ag, 0.08% Cu; 35.73 m @ 0.14 gpt Au, 28 gpt Ag, 0.65% Cu; 48.40 m @ 0.08 gpt Au, 45 gpt Ag, 0.55% Cu; 36.00 m @ 0.16 gpt Au, 27 gpt Ag, 0.81% Cu; 1.30 m @ 0.05 gpt Au, 97 gpt Ag, 2.28% Cu. “The changing tenor of the mineralization could be reflecting a transition from epithermal to porphyry-style mineralization”.
Heliostar Metals Ltd. reported its first drill results from the Ana Paula project in Guerrero. The first two holes drilled by Heliostar targeted the “High Grade Panel” at the core of Ana Paula. Highlighted core length intervals comprise 118.55 m @ 5.44 gpt Au (including 44.5 m @ 11.0 gpt Au, which include 4.0 m @ 48.5 gpt Au); 101.12 m @ 8.35 gpt Au (including 53.2 m @ 11.0 gpt Au). “the High Grade Panel is approximately 250 metres long by 100 metres high by 60 metres thick… hosted primarily in a polymictic breccia unit, although it extends outward into the surrounding granodiorite and limestone. Gold mineralization is directly associated with the proportion of sulphide minerals in the rock”. Heliostar is re-evaluating the project as a high-grade underground mine.
Capitan Mining Inc. provided an exploration update on its Cruz de Plata project in Durango. New interpretation points to the Jesus Maria vein to have a potential strike length of 2.8 km, the Santa Teresa vein of 1.8 km and the San Rafael North vein of 1.3 km before going under cover. The Capitan East gold target has a potential strike of at least 500 m. Seven targets have been recently defined by mapping and prospecting.
Prime Mining Corp. reported results from core drilling at the Z-T area on Los Reyes project in Sinaloa. Highlighted true width intervals comprise 11.6 m @ 3.33 gpt Au, 221 gpt Ag (including 1.0 m @ 24.0 gpt Au, 1,385 gpt Ag); 9.8 m @ 1.52 gpt Au, 25 gpt Ag (including 1.5 m @ 7.94 gpt Au, 61 gpt Ag); 4.5 m @ 1.03 gpt Au, 34 gpt Ag in the Tahonitas zone and 13.8 m @ 0.96 gpt Au, 27 gpt Ag; 8.5 m @ 0.84 gpt Au, 14 gpt Ag; 15.9 m @ 0.74 gpt Au, 37 gpt Ag; 8.5 m @ 1.01 gpt Au, 23 gpt Ag at the Zapote South zone. The results are from step out holes to expand mineralization at depth below the Z-T resource pit shell. Prime Mining recently announced a mineral resource estimate containing 1.47 M indicated Oz AuEq averaging 1.68 gpt and 0.73 M inferred Oz AuEq averaging 1.26 gpt.
Discovery Silver Corp. released results from feasibility study drill holes on its Cordero project in Chihuahua. The reserve expansion drilling highlighted core length intercepts comprise 41 m @ 63 gpt Ag, 0.09 gpt Au, 1.2% Pb, 2.7% Zn; 8 m @ 195 gpt Ag, 0.23 gpt Au, 2.2% Pb, 4.1% Zn; 37 m @ 58 gpt Ag, 0.05 gpt Au, 0.8% Pb, 1.5% Zn; 104 m @ 37 gpt Ag; 0.04 gpt Au, 0.3% Pb, 1.1% Zn; 51 m @ 51 gpt Ag, 0.06 gpt Au, 0.7% Pb, 0.9% Zn. The results are from 23 drill holes focused on reserve upgrade and expansion in the South Corridor and reserve expansion drilling on the margins of the Pozo de Plata zone in the North Corridor. To date 49,700 m of drilling in 156 holes have been completed as part of the feasibility study. A 9,000 m property wide drilling program is planned for the second half of the year.
GR Silver Mining Ltd. released results from two step-out holes outside of the mineral resource boundary at San Marcial, within the Plomosas project in Sinaloa. Highlighted core length results comprise 18.8 m @ 145 gpt Ag, 0.04 gpt Au, 0.1% Pb, 0.1% Zn (including 4.2 m @ 466 gpt Ag, 0.08 gpt Au, 0.1% Pb, 0.3% Zn); 11.3 m @ 584 gpt Ag, 0.05 gpt Au, 0.3% Pb, 0.6 % Zn (including 5.5 m @ 1,084 gpt Ag, 0.07 gpt Au, 0.6% Pb, 1.0% Zn). These holes targeted the extension of the SE Area discovery, 250 m to the southeast.
ON DEALS AND CORPORATE ISSUES
Tarachi Gold Corp. closed the transaction with Compañía Minera de Atocha S.A. de C.V. for the sale of the Magistral project in Durango. Tarachi expects to receive cash payments totalling US$5.7 M from Atocha, of which US$3.05 M have already been received. The balance is to be paid as follows: US$500 K when Atocha concludes negotiations with land owner Ejido Magistral, or after 12 months; US$500 K on November 2023; US$500 K when 50% of the tailings have been mined, sold or processed, or after the first calendar year of operation at the project; US$500 K when 100% of the Magistral tailings have been mined, sold or processed, or after the second calendar year of operation and “The amount of value-added tax currently owing as that tax benefit is realized by Atocha during operations and product sales from the Magistral Project will be paid to Tarachi”, estimated at US$650 K.
Silver Dollar Resources Inc. completed the exercise of its option and now hold 100% interest in the 4,646 ha La Joya project, located in Durango. For gaining 80% interest the company paid First Majestic Silver a total of $700 K plus annual holding costs, incurred in $1 M exploration expenditures and issued First Majestic 19.9% (5.15 M shares) of the then issued and outstanding shares of the company. To obtain the remaining 20% Silver Dollar issued 2 M shares, 5% of the then issued and outstanding shares of the company, to First Majestic, which now owns 18.2% of the outstanding shares of the company.
ON SOCIAL RESPONSIBILITY
Torex Gold Resources Inc. released its 2022 Responsible Gold Mining Report, the annual disclosure of its environmental, Social and Governance (ESG) performance. Among other accomplishments, the company achieved 10 M hours worked without a lost-time injury, ending 2022 with a lost-time injury frequency of 0.28 per million hours worked by its employees and contractors. Almost 60% of the water usage is recycled, 44% less cyanide has been consumed than in 2021. Mexican employees are 99% of the work force, and 60% from Guerrero, where the operations are carried out.
On the image below: Mine dumps in a copper project of the Sonoran Desert. Picture by Jorge Cirett.
Five companies released drilling assays from projects in Mexico during the week. The most impressive results are the gold intercepts by Heliostar Metals at the Ana Paula project in Guerrero. The company reported results from holes aiming to better define the high-grade core of the deposit, which will aid in the planning of an underground mine. The deposit sits at the northern end of the Guerrero Gold Belt, and is one of those beasts hard to put in a cage, as it presents several mineralization styles. The Morelos platform sediments are intruded by a plagioclase-biotite porphyry that produced local hornfelsification and skarnification of the sedimentary rocks. Pyrite, marcasite and arsenopyrite are present as veinlets, stockworks and disseminations in these altered rocks, in breccias, and as narrow semi-massive sulfide replacements at intrusive contacts. A late low sulfidation epithermal veining stage with visible gold is also present in the deposit.
Discovery Silver’s Cordero project in Chihuaha is also one of these deposits not easily cajoled to only a mineralization style, with high grade intermediate sulfidation epithermal veins cutting through (overprinting?) disseminated Ag-Pb-Zn mineralization (earlier?) related to the intrusion of felsic laccoliths, dikes and sills into a calcareous sedimentary sequence, with skarn and carbonate replacement mineralization dominating parts of the deposit. A very broad classification would put Cordero as polymetallic intrusive related mineralization.
Prime Mining’s Los Reyes project and GR Silver Mining’s Plomosas property, both in Sinaloa, are intermediate sulfidation epithermal systems with a strong structural component. Avino Silver & Gold’s is finding stronger copper grades 800 m below the surface on the Avino vein, and is considering the probable presence of a porphyry copper setting at depth.
Quartz blade texture in a low-sulphidation epithermal vein
By Miguel A Heredia
During the 20th week of the year (May 17th to May 21st, 2023), at least 16 press releases were announced by companies working in Mexico, with four reporting resources and developments of their properties, four communicating production and financial results, three disclosing deals and corporate issues, two announcing financing issues, two informing on exploration results, and one commenting on Mexican issues. ON MEXICO ISSUES, Alamos Gold and Guanajuato Silver reported the best drilling intercepts in Mexico on the third week of May, 2023. ON EXPLORATION, In Sonora, Colibri reported a strong soil gas hydrocarbon gold anomaly at its Evelyn-Plomo project. In Oaxaca, Vortex initiated environmental and surface geological studies at its Zaachila project. ON MINING, Americas Gold and Silver reported Q1, 2023 production and financial results. Sierra Metals announced Q1, 2023 production and financial results from their Bolivar and Cusi mines in Chihuahua. Starcore reported Q4, 2023 production results from its San Martin mine in Queretaro. Excellon announced Q1, 2023 financial results. ON FINANCING, Fabled announced that it intends to complete a non-brokered private placement for gross proceeds of up to CAD $500K (Mecatona project, Chihuahua). Excellon announced a private placement financing for up to CAD $10M of subscription receipts (La Negra mine, Queretaro). ON RESOURCES AND DEVELOPMENT, Guanajuato Silver released drill results from their San Ignacio mine in Guanajuato and Topia mine in Durango. Alamos Gold reported results from its ongoing drilling program at Puerto del Aire deposit and Capulin target within its Mulatos mine in Sonora. GoGold announced results of its initial Preliminary Economic Assessment (PEA) at its Los Ricos North project in Jalisco. Tocvan provided an update and sampling results from a bulk sample completed at its Pilar project in Sonora. ON DEALS AND CORPORATE ISSUES, Vizsla granted stock options to Directors, Officers, Employees, and Consultants (Panuco project, Sinaloa). Fabled provided an update on the agreement with Kootenay to acquire the Mecatona property in Chihuahua. Excellon provided corporate highlights for the three month ended March 31, 2023. ON SOCIAL RESPONSIBILITY, no relevant news.
ON MEXICO ISSUE
Alamos Gold Inc., and Guanajuato Silver Company Ltd., reported the best drilling intercepts in Mexico on the third week of May, 2023. Details are shown in the table below:
Colibri Resource Corporation reported a strong soil gas hydrocarbon gold anomaly (SGH) south of the main Zone at its Evelyn-Plomo project in Sonora. To define this anomaly, a total of 110 soils samples were collected at 25m stations along 100m spaced lines. “Collectively, these interpreted features indicate a robust SGH response with a high degree of confidence that it is indicative of blind mineralization underlying the southern SGH gold anomaly”. Colibri plans to drill test this target with the hopes of expanding the Main Zone, as well as to continue evaluating the SGH method as a tool for future exploration on the Evelyn-Plomo project.
Vortex Metals Inc., initiated environmental and surface geological studies at its Zaachila project in Oaxaca. It will allow protecting the local environment and deepening the understanding of the project´s potential to advance its pursuit of multiple high-grade copper targets.
Americas Gold and Silver Corporation reported Q1, 2023 production and financial results from its Cosala operation in Sinaloa. The company produced approximately 265K Oz Ag, 2.7M Lb Pb, and 7.2M Lb Zn. Cash cost and AISC were USD $4.61 per Oz Ag and USD $9.52 per Oz Ag respectively. Production for 2023 is expected to be between 1.2-1.4M Oz Ag,11-13M Lb Pb, and 33-37M Lb Zn, benefiting from more production from the higher-grade silver areas in the Upper Zone of the San Rafael mine.
Sierra Metals Inc., announced Q1, 2023 production and financial results from their Bolivar and Cusi mines in Chihuahua. At Bolivar mine, the company processed 299K tonnes at a cash and AISC of USD $1.85 and USD $3.1 per CuEq payable pound. It reported cost of sales of USD $14.93M; a total cash cost of USD $13.16M; and a cash cost of USD $43.99 per ton processed. At Cusi mine, the company processed 59.1K tonnes at a cash and AISC of USD $23.02 and USD $29.8 per Oz AgEq payable. It reported cost of sales of USD $5.8M; a total cash cost of USD $5.23M; and a cash cost of USD $88.43 per ton processed.
Starcore International Mines Ltd., reported Q4, 2023 production results from its San Martin mine in Queretaro. The company milled 56,821 tonnes of 1.46 g/t Au and 11 g/t Ag with metallurgical recoveries of 86.12% and 48.72% respectively to produce 2,409 Oz AuEq.
Excellon Resources Inc., announced Q1, 2023 financial results. Excellon reported a reversal of the USD $22M litigation liability relating to the previously disclosed judgment against one of the company’s subsidiaries in Mexico; a gain on the deconsolidation of San Pedro of USD $24.25M; other income of USD $1.58M; and a net income of USD $15.9M. The company announced in its 2022 Preliminary Economic Assessment (PEA) a post-tax NPV (using a discount rate of 5%) of USD $132.4M and estimated restart capital of USD $20.9M, based on the PEA.
Fabled Silver Gold Corp., announced that it intends to complete a non-brokered private placement for gross proceeds of up to CAD $500K at a price of CAD $0.05 per unit. Gross proceeds will be used to complete a phase 1 exploration program at the Mecatona project in Chihuahua, and for general working capital purposes.
Excellon Resources Inc., announced a private placement financing for up to CAD $10M of subscription receipts at an offer price of CADS $0.35 per subscription receipt (La Negra mine, Queretaro).
ON RESOURCES AND DEVELOPMENT
Guanajuato Silver Company Ltd., released drill results from their San Ignacio mine in Guanajuato and Topia mine in Durango. At San Ignacio mine, drilling highlights reported in true widths include hole UGSI23-008 with 1.95 g/t Au and 501 g/t Ag (657 g/t AgEq) over 1.90m, including 3.42 g/t Au and 744 g/t Ag (1,018 g/t AgEq) over 0.70m, plus 2.01 g/t Au and 2 g/t Ag (163 g/t AgEq) over 0.22m, plus 0.23 g/t Au and 94 g/t Ag (113 g/t AgEq) over 0.35m; hole UGSI23-009 with 1.26 g/t Au and 415 g/t Ag (516 g/t AgEq) over 1.93m, including 4.14 g/t Au and 2,020 g/t Ag (2,351 g/t AgEq) over 0.22m, plus 0.25 g/t Au and 113 g/t Ag (133 g/t AgEq) over 0.77m, including 0.46 g/t Au and 215 g/t Ag (252 g/t AgEq) over 0.40m; and hole UGSI23-010 with 1.78 g/t Au and 557 g/t Ag (699 g/t AgEq) over 0.45m, plus 1.68 g/t Au and 8 g/t Ag (142 g/t AgEq) over 1.68m, including 2.57 g/t Au and 9 g/t Ag (215 g/t AgEq) over 0.64m, plus 1.72 g/t Au and 122 g/t Ag (260 g/t AgEq) over 1.72m, including 2.94 g/t Au and 151 g/t Ag (386 g/t AgEq) over 0.60m, plus 0.32 g/t Au and 334 g/t Ag (359 g/t AgEq) over 4.89m, including 1.25 g/t Au and 1,947 g/t Ag (2,047 g/t AgEq) over 0.37m. At Topia mine, drilling highlights reported in true widths include hole UT23-458 with 4.39 g/t Au, 660 g/t Ag, 3.2% Pb, and 8.5% Zn (1,435 g/t AgEq) over 0.45m, plus 13.89 g/t Au, 152 g/t Ag, 1% Pb, and 5.6% Zn (1,551 g/t AgEq) over 0.10m; hole UT23-459 with 2.02 g/t Au, 938 g/t Ag, 24.6% Pb, and 9.8% Zn (2,150 g/t AgEq) over 0.42m; hole UT23-460 with 8.16 g/t Au, 113 g/t Ag, 2.1% Pb, and 1.9% Zn (923 g/t AgEq) over 0.45m; hole UT23-461 with 3.53 g/t Au, 905 g/t Ag, 1.1% Pb, and 7.8% Zn (1,525 g/t AgEq) over 0.10m; hole UT23-463 with 6.55 g/t Au, 1,424 g/t Ag, 4.8% Pb, and 13.8% Zn (2,674 g/t AgEq) over 0.60m; and hole UT23-465 with 0.0 g/t Au, 731 g/t Ag, 4% Pb, and 0.2% Zn (851 g/t AgEq) over 0.15m.
Alamos Gold Inc., reported results from its ongoing drilling program at Puerto del Aire deposit and Capulin target within its Mulatos mine in Sonora. At Puerto del Aire deposit, drilling highlights reported in true widths and values > 40 g/t Au capped include hole 23MUL117 with 20.95 g/t Au (11.14 g/t Au cut) over 14.15m; hole 23MUL119 3.52 g/t Au over 17.05m, plus 8.33 g/t Au over 18m; hole 23MUL112 with 14.81 g/t Au (12.34 g/t Au cut) over 9.1m; hole 23MUL108 with 16.19 g/t Au (7.63 g/t Au cut) over 7.75m; hole 23MUL98 with 10.8 g/t Au over 3m, plus 33.14 g/t Au over 3.05m: and hole 23MUL115 with 15.49 g/t Au (13.89 g/t Au cut) over 6m. These results extend high-grade gold mineralization outside of Mineral Reserves and Resources at Puerto Del Aire. At Capulin target, drilling highlights include hole 23REF012 with 2.01 g/t Au over 82.45m, including 4.81 g/t Au over 16.40m, including 5.38 g/t Au over 12.35m. Capulin target is located 2km east of the former San Carlos open pit.
GoGold Resources Inc., announced results of its initial Preliminary Economic Assessment (PEA) at its Los Ricos North project in Jalisco. Highlights of the PEA include an after-tax NPV (using a discount rate of 5%) of USD $413M, with an after-tax IRR of USD $29%; a 13-year mine life producing a total of 110.3M payable Oz AgEq, consisting of 68M Oz Ag, 221.7K Oz Au, 22.8M Lb Cu, 144.1M Lb Pb, and 242.2M Lb Zn; an initial capital costs of USD $221M, including USD $29M in contingency costs, over an expected 18 month build, additional expansion capital of USD $137M, and sustaining capital costs of USD $6M over the life of mine (LOM); an average LOM operating cash costs of USD $9.50 per Oz AgEq, and all in sustaining costs (AISC) of USD $9.68 per Oz AgEq; an average annual production of 8.8M Oz AgEq in years one through twelve; and approximately 3/4 of LOM production is from four open pits containing oxide mineralization and approximately 1/4 is from a separate open pit which contains only sulphide mineralization.
Tocvan Ventures Corp., provided an update and sampling results from a bulk sample completed at its Pilar project in Sonora. Tocvan reported bulk sample material averaging grades of 1.9 g/t Au and 13 g/t Ag from 148 samples ranging from 0.8 to 3.4 g/t Au and from 5 to 26 g/t Ag. Additionally, 32 fine fraction samples excluded from heap leach process returned Au values from 1.2 to 2.8 g/t Au, with a weighted mean of 2.02 g/t Au, and Ag values from 9 to 25 g/t Ag, with a weighted mean of 16 g/t Ag. The fine fraction along with additional bulk sample material will be used in testing gravity recovery methods. “The heap leach process is currently underway for the Bulk Sample. Over 800 tonnes of Bulk Sample material have been prepared for heap leach processing, an additional 350 tonnes of crushed material and 250 tonnes of raw-bulk sample are available for gravity recovery and later agitated leach testing”.
ON DEALS AND CORPORATE ISSUES
Vizsla Silver Corporation granted 3.85M stock options at an exercise price of $1.60 to Directors, Officers, Employees, and Consultants. The options are exercisable for a period of five years and will vest over the next two years (Panuco project, Sinaloa).
Fabled Silver Gold Corp., provided an update on the agreement with Kootenay to acquire the Mecatona property in Chihuahua. “The company has been in the process of preparing required documentation in respect of the Proposed Transaction including a NI 43-101 Technical Report on the Mecatona Property. The Company is continuing to correspond with the TSX Venture Exchange regarding the Proposed Transaction and will provide further updates in due course”.
Excellon Resources Inc., provided corporate highlights for the three month ended March 31, 2023. The company announced the acquisition of the post-producing La Negra mine in Queretaro. La Negra is a fully permitted mine with Indicated Mineral Resources of approximately 15.1M Oz AgEq at 191 g/t AgEq and Inferred Mineral Resources of approximately 41.8M Oz AgEq at 202 g/t AgEq.
Two companies reported drilling results from two different projects/targets each during the week. Alamos Gold released assays from drilling at Puerto del Aire and Capulin, targets within the large land package of its Mulatos property, in Sonora. Puerto del Aire “is a higher-grade underground deposit located adjacent to the main Mulatos pit”, comprising the PDA, Gap, Victor, and Estrella zones. Reserves of 728 K Oz Au grading 4.84 gpt have been defined in Puerto del Aire. The Capulin area is two Km from the San Carlos pit, and has seen limited historical exploration. The recent intercept of oxide and sulfide mineralization is in a breccia unit of the Capulin Fault Zone. Mulatos is one of the largest examples of high sulfidation gold mineralization in Mexico.
Guanajuato Silver drilling results from San Ignacio, in Guanajuato, are part of a program focusing in extending mineralization on the Melladito and Purisima veins. The veins in San Ignacio form part of a low sulfidation epithermal system. At Topia, in Durango, recent drilling has been focused on the Prieta, Dos Amigos, Rosario and U.D. Pueblo veins. Mineralization in the district known for its narrow metal-rich veins is of intermediate sulfidation epithermal affinity.
During the 19th week of the year (May 8th to May 14th, 2023), 19 companies working in Mexico posted news releases. Three companies informed on exploration on their properties, eight companies informed on Q1 2023 or full-year 2023 production/financial results, one company informed on the termination of an illegal blockade. One company announced the opening of a financing round. Assay results were released on an advanced property in Sinaloa, and a mill started test work in Nayarit. ON MEXICO ISSUES, Fitch Ratings warned on the impact of the new mining law, specially in exploration activities. ON EXPLORATION, in Sinaloa, Vizsla Silver reported drilling results from Panuco; Prismo Metals started drilling at Palos Verdes. In Jalisco, Stroud Resources provided a summary of the 2021-2022 drilling at Santo Domingo Hostotipaquillo. ON MINING, Endeavour Silver, GoGold Resources, Mag Silver, Avino Silver, Torex Gold, Pan American Silver, Golden Minerals, SilverCrest Metals released Q1 2023 production reports. Fortuna Silver informed on the termination of the illegal blockade at its San José mine in Oaxaca. ON FINANCING, Stroud Resources is to raise up to C$1.5 M. ON RESOURCES AND DEVELOPMENT, Oroco Resource released assay results from its Santo Tomás project in Sinaloa. Xali Gold informed its optioned processing plant in Nayarit has begun test work. ON DEALS AND CORPORATE ISSUES, GR Silver updated on work at its Plomosas project in Sinaloa. Silver Valley informed on negotiations with the Mexican Lithium Agency pertaining a possible partnership involving the lithium component of its properties in Mexico. ON SOCIAL RESPONSIBILITY, Zacatecas Silver continues to build its relationship with the Tetlama community in Morelos.
ON MEXICO ISSUES
Fitch Ratings stressed that the new mining law is to have far-reach implications in the Mexican mining industry, as it is to slow the pace of exploration, shorten the concessions term and generate worries on the operational continuity, and also to revitalize community negotiations. Even as the details are still to be defined, exploration is the activity that will be hit the hardest, with exploration activities now to be conducted by the Servicio Geológico Mexicano (SGM) and later expanded by special collaboration agreements.
Stroud Resources Ltd. provided a summary of the 2021-2022 drilling program at its Santo Domingo property in Hostotipaquillo, Jalisco. The program consisted of 9,936 m in 32 holes to explore the extent of known vein-hosted epithermal mineralization and to define additional parallel systems. Highlighted core length intervals comprise 1.55 m @ 624 gpt Ag; 47.70 m @ 0.18 gpt Au, 42 gpt Ag, 0.1% Pb, 0.4% Zn; 48.90 m @ 0.42 gpt Au, 41 gpt Ag; 68.35 m @ 0.18 gpt Au 66 gpt Ag; 34.70 m @ 1.23 gpt Au, 60 gpt Ag; 32.15 m @ 0.55 gpt Au, 106 gpt Ag; 36.80 m @ 0.23 gpt Au, 141 gpt Ag, 0.2% Pb, 2.0% Zn; 24.00 m @ 0.13 gpt Au, 105 gpt Ag; 14.70 m @ 0.78 gpt Au, 165 gpt Ag; 34.70 m @ 1.23 gpt Au, 60 gpt Ag, 0.6% Pb, 1.8% Zn; 35.45 m @ 0.17 gpt Au, 47 gpt Ag. “To date, the Santo Domingo Project has approximately 85 drill holes totalling 18,184 metres”.
Vizsla Silver Corp. reported results from 16 expansion holes at its Panuco project in Sinaloa. These expansion holes targeted the Copala resource area, with highlighted true width intervals comprising 5.89 m @ 1,403 gpt Ag, 4.24 gpt Au (or 1,591 gpt AgEq); 4.90 m @ 345 gpt Ag, 1.12 gpt Au (or 396 gpt AgEq); 2.14 m @ 1,319 gpt Ag, 22.46 gpt Au (or 2,743 gpt AgEq); 1.45 m @ 789 gpt Ag, 5.13 gpt Au (or 1,080 gpt AgEq). “Ongoing drilling at Copala has now traced mineralization along ~1,250 metres of strike length and ~400 metres down dip…… Vizsla has to date completed 35,000 m of its planned 90,000 m 2023 drill program”.
Prismo Metals Inc. has started the drilling program at its Palos Verde project in Sinaloa. The at least 2.500 m drilling is to test the 65% of the Palos Verdes structure that has not been drilled, along with some other veins that have been mapped. The company is trying to intercept large ore shoots as in the adjacent Panuco project (See above).
Endeavour Silver Corp. announced its financial and operating results for Q1 2023. During the period 1.62 M Oz Ag, 9,342 Oz Au (or 2.4 M Oz AgEq) were produced at $11.12 per Oz Ag and an AISC of $20.16 per Oz Ag, net of gold credits. Cash position was $61.6 M at the end of the period, and working capital $92.8 M. The company is going ahead with the development of the Terronera project in Jalisco, with over $58 M invested to date
GoGold Resources Inc. announced the financial results for Q1 2023. The company produced 173.7 K Oz Ag, 2,016 Oz Au, 143 tonnes Cu, at adjusted cash cost of $14.00 per Oz AgEq and adjusted AISC of $19.76 per Oz AgEq. Revenue was $7.6 M on the sale of 355.7 K Oz AgEq. Cash on hand is US$100.9 M (Parral tailings, Chihuahua).
Mag Silver Corp. released unaudited financial results for Q1 2023. Concentrate production has commenced at the Juanicipio mine in Zacatecas (Fresnillo 56%, MAG 44%), containing 2 M Oz Ag, 5,291 Oz Au, 1,281 tonnes Pb, 1,656 tonnes Zn. MAG reported net income of $4.7 M, and closed a $42.6 M offering of shares and a $17.1 M private placement during the period.
Fortuna Silver Mines Inc. reported that the illegal blockade at its San Jose Main in Oaxaca has been lifted. The company and union workers have reached an agreement to resume operations at the mine and processing plant which recommenced on May 10, 2023.
Avino Silver & Gold Mines Ltd. released its consolidated financial results for the first quarter of 2023. During the period, the company milled 159.8 K tonnes at Avino, in Durango, to produce 234.3 K Oz Ag, 2,286 Oz Au, 1.4 M Lb Cu (678.2 K Oz AgEq), at cash cost of $14.22 per Oz AgEq and an AISC of $20.17 per Oz AgEq. Revenues of $9.8 M were impacted by timing of concentrate shipments, EBITDA was $0.3 M, cash provided by operating activities of $0.4 M. The dry-stack tailings facility is now complete and fully operational. The company is assessing the continuity of mineralization to depth, with mineralization extending at least 800 m downdip … “it appears that the Avino vein is getting richer in copper as we go deeper with a grade of 1.63% copper over 16.66 metres” intercepted at depth.
Torex Gold Resources Inc. reported financial and operational results for Q1 2023. During the period the company produced 122,918 Oz Au at its El Limón-Guajes property in Guerrero, milling 13,073 tpd and mining form ELG underground. Cash cost was $709 per Oz Au and AISC of $1,079 per Oz Au. Reported income of $68.2 M and adjusted earnings of $50.3 M. The company has reserves of 38.6 M tonnes @ 2.91 gpt Au, 17.1 gpt Ag, 0.58% Cu at the Morelos Complex in Guerrero, 47.8 M tonnes @ 3.33 gpt Au, 22.6 gpt Ag, 0.80% Cu in measured and indicated resources and 15.8 M tonnes @ 2.49 gpt Au, 23 gpt Ag, 0.86% Cu in inferred resources. The quarter closed with net cash of $318.4 M.
Pan American Silver Corp. reported unaudited results for the Q1 2023, without figures or specific news on its Mexican properties.
Golden Minerals Co. released financial results for Q1 2023. Revenue was $4.2 M, net operating margin $0.2 M related to the Rodeo mine operations in Durango, where 2,081 Oz Au, 11,535 Oz Ag were produced. Golden is assessing the possibility of restarting the Velardeña property mining operations in Durango. During the period a maiden resource of 937 K tonnes @ 570 gpt Ag was announced on its Yoquivo property, in Chihuahua, and the return of the Santa Maria property, also in Chihuahua, by Fabled Silver. The company had $2.0 M in cash and cash equivalents by the end of the period.
SilverCrest Metals Inc. announced its financial and operational results for the first quarter 2023. Undeground mining rates at Las Chispas, in Sonora, averaged 707 tonnes per day (tpd), processing 1,160 tpd with an estimated 40% of production feed sources from stockpiles. Grades averaged 4.06 gpt Au, 419 gpt Ag, recovering 97.5% Au, 91.0% Ag, to produce 13,300 Oz Au, 1.29 M Oz Ag (2.45 M Oz AgEq), at cash cost $6.57 per Oz AgEq and AISC of $11.45 per Oz AgEq. The company had revenue of $58.0 M, resulting in mine operating income of $35.6 M with net free cash flow of $19.3 M, ending the quarter with cash of $45.8 M and net cash of $21.0 M.
Stroud Resources Ltd. announced a non-brokered private placement to raise up to C$1.5 M (Santo Domingo Hostotipaquillo, Jalisco).
ON RESOURCES AND DEVELOPMENT
Oroco Resources Corp. released assay results for the last two drill holes of the 2021-2023 program, which test the North Zone of its Santo Tomás project in Sinaloa. Highlighted core length results comprise 185.4 m @ 0.27% Cu, 0.013 gpt Au, 1.1 gpt Ag; 228.5 m @ 0.43% Cu, 0.035 gpt Au, 2.52 gpt Ag in one hole and 387.4 m @ 0.45% Cu, 0.043 gpt Au, 3.0 gpt Ag; 39.0 m @ 0.26%, 0.012 gpt Au, 1.68 gpt Ag in the other. “The North Zone program comprises 47 diamond drill holes and 30,909 m of drilling”.
Xali Gold Corp. advised that Minera Cinco Reales S.A. de C.V. has commenced work on the San Dieguito de Arriba plant in Nayarit. The company is planning to carry their first bulk sample test by the end of May. The company will be allowed to conduct the bulk test work while the environmental impact permit is authorized. “Xali Gold will have the right to receive 15% of the net profits from any mineral that is processed at the SDA Plant”.
ON DEALS AND CORPORATE ISSUES
GR Silver Mining Ltd. updated on work and plans for 2023 at its 43,187 ha. Plomosas project in Sinaloa. The property hosts intermediate to low sulfidation epithermal mineralization on the Plomosas, San Marcial and San Juan-La Colorada areas, on which a new resource estimate was filed early this month, based in 60,020 m of drilling in 424 holes. Indicated resources stand at 15 M tonnes @ 117 gpt Ag containing 55 M Oz Ag, or 179 gpt AgEq, containing 85 M Oz AgEq. Inferred resources stand at 9 M tonnes @ 78 gpt Ag, containing 22 M Oz Ag, or 171 gpt AgEq, holding 49 M Oz AgEq. A drill rig has been mobilized to the SE Area in San Marcial and a 12,500 m drilling exploration program has been recommended. On the cost reduction initiative, staff has been reduced by 38% and vehicles by 50%, “with executives taking reduced cash salaries and directors waiving cash fees.”
Silver Valley Metals Corp. provided an update on its MexicCan Lithium-Potassium project in Zacatecas-San Luis Potosí. The company “has been in discussions with LitioMX, (the national lithium company of Mexico)” pertaining the possibility of forming a partnership for exploration and production on Silver Valley’s concessions. “The negotiation is focused solely on the lithium component of the multi-commodity deposit(s). This represents an inferred resource of 243,000 tonnes of lithium carbonate equivalent (LCE) defined to date at surface to an average depth of only 5 metres”.
ON SOCIAL RESPONSIBILITY
Zacatecas Silver Corp. continues to build on its relationship with the Tetlama community, on its Esperanza project in Morelos. “The Company continues to provide on-going social benefit support with programs currently implemented including: medical assistance, funerary compensation, educational scholarships, and the community forest fire fighting brigade”. The company is combining resources with the community nucleus for the construction of the first stage of a new community cemetery.
On the image below: Silicified breccia-vein ridge in a copper project in the Sonoran Desert. Picture by Jorge Cirett.
Three companies released drilling assays from properties in Mexico during the week. Vizsla Silver’s results from the Panuco project, in Sinaloa, returned the highest gold and silver intercepts from the low to intermediate sulfidation epithermal mineralization in the veins of the district.
Other project with low to intermediate sulfidation epithermal mineralization with significant results is Santo Domingo Hostotipaquillo, in Jalisco. Stroud Resources presented the results from drilling during 2021 and 2022, of which the most relevant results, from the not previously released 2022 campaign, are in the table below. The project is adjacent to and part of the same mineralizing system present at GoGold’s Los Ricos South project.
Santo Tomás is a porphyry copper project in northern Sinaloa, not far from the border with Sonora and Chihuahua. The long copper intercepts by Oroco Resources are from the North Zone.
Quartz veining hosted in a hydrothermaly-altered intrusive
By Miguel A Heredia
During the 18th week of the year (May 1st to May 7th, 2023), at least 28 press releases were announced by companies working in Mexico, and 2 news published by the media, with eleven reporting resources and developments of their properties, six commenting on Mexican issues, four communicating production and financial results, three disclosing deals and corporate issues, three announcing financing issues, two informing on exploration results, and one discussing social issues. ON MEXICO ISSUES, Fortuna Silver reported an illegal blockade at its San Jose mine in Oaxaca. At least 40 companies from Canada and the United States that operate in Mexico expressed their intention to protect themselves after the approval of the reforms to the Mining Law. Chesapeake has initiated legal proceedings against the Dirección General de Minas of Mexico (DGM) with the Federal Court of Administrative Justice in the state of Durango, Mexico in response to the DGM’s cancellation of the San Vicente 3 mineral concession. Radius filed a legal demand with a Federal Mexican Court to obtain title to the Amelia 4 mining concession at its Amalia project in Chihuahua. The Senate of Mexico approved the mining reform that reduces and facilitates the cancellation of concessions. Bendito Resources, Infinitum Copper, Pan American Silver, and Silver Tiger reported the best drilling intercepts in Mexico on the first week of May, 2023. ON EXPLORATION, In Sonora, Infinitum Copper reported results from 6 of 12 drill holes collared at its Adelita project. In Chihuahua, Reyna Silver provided an update on their Batopilas and Guigui projects. ON MINING, Capstone, Argonaut, and First Majestic reported Q1, 2023 production and financial results for their Mexican operations. Minera Alamos reported full year 2022 production and financial results from its Santana property in Sonora. ON FINANCING, Sonoro Gold announced it plans to undertake a non-brokered private placement for gross proceeds of up to CAD $3M (Cerro Caliche project, Sonora). Kootenay announced a private placement for gross proceeds of $4M (Columba project, Chihuahua). First Majestic announced that its Board of Directors has declared a cash dividend payment in the amount of $0.0057 per common share for Q1, 2023. ON RESOURCES AND DEVELOPMENT, Xali received the change in soil use permit for its El Oro Tailings project in Mexico State. Bendito Resources presented results from the last 9 of 18 RC holes drilled at its El Alacran project in Sonora. Silver Tiger announced results from its ongoing drill program at its El Tigre project in Sonora. Capstone reported Mineral Reserves and Mineral Resources for its Cozamin property in Zacatecas as at January 1, 2023. GR Silver filed a NI 43-101 technical report to provide an updated resource estimate for its Plomosas project in Sinaloa. GoGold released additional results from its ongoing drilling campaign at its Los Ricos South project in Jalisco. Oroco presented a Mineral Resource Estimate as of April 21, 2013 for its Santo Tomas project in Sinaloa. Prime announced an updated Mineral Resource Estimate for its Los Reyes property in Sinaloa. Pan American Silver released results of eighth holes drilled at La Colorada Skarn project in Zacatecas. Minera Alamos announced positive results of an independent Preliminary Economic Assessment for its Cerro de Oro project in Zacatecas. Torex provided the second quarterly update on its Media Luna project in Guerrero. ON DEALS AND CORPORATE ISSUES, Bear Creek announced its CEO succession (Mercedes mine, Sonora). GR Silver announced the retirement of its CFO and the appointment of its replacement (Plomosas project, Sinaloa). Tarachi signed a definitive agreement for the sale of Magistral Tailings project in Durango. ON SOCIAL RESPONSIBILITY, Almaden completed a social impact assessment relating to its Ixtaca project in Puebla, and underlying mineral claim area.
ON MEXICO ISSUE
Fortuna Silver Mines Inc., reported an illegal blockade at its San Jose mine in Oaxaca due to a group of workers did not agree with the estimated amount the Company is to distribute among the workforce as part of the worker´s profit sharing entitlement. Profit sharing is a transparent calculation and is payable in accordance with Mexican legislation. As a consequence, operations at the mine have been temporarily halted.
At least 40 companies from Canada and the United States that operate in Mexico expressed their intention to protect themselves after the approval of the reforms to the Mining Law by the government because they consider that they are violating their rights and that they are being changing the rules of the game. The law firm Von Wobeser y Sierra, anticipated that they will also consider the international arbitration considered as a mechanism to resolve disputes within the framework of the Free Trade Agreement between Mexico, the United States and Canada (T-MEC) and the Trans-Pacific Economic Cooperation Agreement (TPP). The elimination of the concepts of Free Land and First Applicant are the elements that most concern companies because with them the government could “legalize” the non-granting of concessions to private parties, by giving the exploration monopoly to the Mexican Geological Service (SGM). ), warned the Mining Chamber of Mexico (Camimex). Until now, the Canadian mining company Silver Bull Resources presented in March to the International Center for Settlement of Investment Disputes (ICSID) its intention to claim economic damages for at least USD $178M for the blockade of its Sierra Mojada Project since September 2019. The American Vulcan Materials presented to ICSID a claim for an estimated damage of at least USD 1.9 B against Mexico for the closure and occupation of the Sac-Tun mine (formerly Calica) and the Punta Venado pier in Playa del Carmen. A resolution on this issue is pending since May 2022.
Chesapeake Gold Corporation has initiated legal proceedings against the Dirección General de Minas of Mexico (DGM) with the Federal Court of Administrative Justice in the state of Durango, Mexico in response to the DGM’s cancellation of the San Vicente 3 mineral concession, on the basis that the Company did not provide adequate evidence to support the Company’s performance of the exploration work required to maintain the concession. The Company’s legal position, approved by external Mexican legal counsel, is that the work required to maintain the concession was conducted on the property and appropriate evidence was submitted to the DGM to substantiate the work. The San Vicente 3 mineral concession is one of 12 mineral concessions comprising the Metates property, representing 700 hectares of the 4,260 hectares in the Metates project, and encompasses a portion of the Metates mineral resource. The Company intends to vigorously defend its position with respect to the San Vicente 3 mineral concession.
Radius Gold Inc., filed a legal demand with a Federal Mexican Court to obtain title to the Amelia 4 mining concession at its Amalia project in Chihuahua. “Radius and project JV partner Pan American Silver Corp. have completed all the requirements, fee payments and surveys for the Amalia 4 application. The mining authority of Chihuahua has processed and approved the submission without fault and passed the license to the Mexico Mining Directorate proposing title issuance. The regulated time for the mining authority to comment and request revision has passed and granting of title is a legal requirement under the mining law. Radius has filed a legal demand to enforce the granting of title. Radius legal counsel believes the Company has clear legal right to the application and title. Legal counsel has been successful in obtaining granted concessions in similar situations recently”.
The Senate of Mexico approved the mining reform that reduces and facilitates the cancellation of concessions. The legal changes were approved despite Canada’s claim and in an express session in which twenty laws and reforms were endorsed in just five hours. The senators approved modifications to the Mining, National Water, General Ecological Balance and Environmental Protection laws, and the General for the Prevention and Integral Management of Waste. The reform will allow the government to only grant mining concessions through a public tender and with prior consultation with indigenous peoples, in addition to facilitating the revocation of the license for environmental damage. The reform could generate tensions with the partners of the T-MEC, in particular with Canada, which has already complained in recent days. The Canadian Minister of International Trade, Mary Ng, revealed last Wednesday that she spoke with the Secretary of the Economy of Mexico, Raquel Buenrostro, to express the “concern” of the Canadian government with the then proposed reform of the country’s mining sector, in the that Canadian companies constitute the largest foreign investor.
GoGold Resources Inc., Bendito Resources Inc., Infinitum Copper Corp., Pan American Silver Corp., and Silver Tiger Metals Inc., reported the best drilling intercepts in Mexico on the first week of May, 2023. Details are shown in the table below:
Infinitum Copper Corp., reported results from 6 of 12 drill holes collared at its Adelita project in Sonora. Drilling highlights include hole ADD-22-0021 with 0.51% Cu, 0.16 g/t Au, 16 g/t Ag, and 0.6% Zn (1% CuEq) over a true width (TW) of 19.85m, including 0.83% Cu, 0.22 g/t Au, 22 g/t Ag and 0.8% Zn (1.51% CuEq) over a TW of 7.98m, including 0.41% Cu, 0.16 g/t Au, 14 g/t Ag, and 0.5% Zn (0.83% CuEq) over a TW of 8.69m; and hole AD-22-0028 with 0.8% Cu, 0.35 g/t Au, and 19 g/t Ag (1.22% CuEq) over a TW of 48.7m, including 0.85% Cu, 0.31 g/t Au, and 29 g/t Ag (1.34% CuEq) over a TW of 20.38m, including 1.03% Cu, 0.51 g/t Au, and 16 g/t Ag (1.54% CuEq) over a TW of 20.76m. “AD-22-0028 is the only drill hole which has intersected the large and distinct magneto-telluric anomaly on the eastern flank of the Cerro Grande anticline”. The intersection of hole AD-22- 0028 is open to the north, east and west.
Reyna Silver Corp., provided an update on their Batopilas and Guigui projects in Chihuahua. At Batopilas, Chihuahua, the company has carried out detailed sampling and structural programs, as well as conducted a detailed AMT geophysics study to outline major structures and features that may control vein control and location of mineralization, as well as to understand the historic ore shots geometry and mineralization surface expressions , including the newly identified gold-bearing structures. The company plans to drill again in the property a minimum of 3,000m once the final combining of the historical data, drill results, and detailed follow-up work is complete. At Guigui project, Chihuahua, the previous Phase 1 and 2 of drilling revealed critical components of an important CRD system. These drill programs identified a 0.5 square km skarn footprint that remains open in all directions. The company recently executed a Natural Source Audio MagnetoTellurics (NSAMT) survey and is waiting for the final interpretation to integrate into the developing drill-target model for the Phase 2 drilling program this year.
Capstone Copper Corp., reported Q1, 2023 production and financial results from its Cozamin property in Zacatecas. The company produced 11.65M Lb Cu at a cash cost of 1.72 per Lb Cu produced. Realized copper price was USD $4.17 per Lb.
Argonaut Gold Inc., reported production and financial results from their Mexican operations. At La Colorada, Sonora, the company reported that it sold 5,086 Oz Au; a cost of sales of USD $12.7M; a cost of sales per Oz Au sold of USD $2,505; a production cost of USD $8M; a cash and all in sustaining cost per Oz Au sold of USD $2,229 and USD $2,333 respectively. At San Agustin, Durango, it reported that 11,491 Oz Au were sold; a cost of sales of USD $22.7M; a cost of sales per Oz Au sold of USD $1,980; a production cost of USD $17.4M; a cash and all in sustaining cost per Oz Au sold of USD $1,558 and USD $1,627 respectively. At El Castillo, Durango, the company reported that it sold 7,358 Oz Au; a cost of sales of USD $14.5M; a cost of sales per Oz Au sold of USD $1,976; a production cost of USD $8.3M; a cash and all in sustaining cost per Oz Au sold of USD $1,675 in both cases.
First Majestic Silver Corp., reported Q1, 2023 production and financial results from their Mexican operations. Figures by mine operation is shown in the table below:
Minera Alamos Inc., reported full year 2022 production and financial results from its Santana property in Sonora. The company recovered and sold 11.67K Oz Au and reported revenue s of $21.7M; costs of goods sold of $13.5M for gross profits of $8.18M; net income of $5.6M; cash and cash equivalents of $13.15M; and working capital as of December 31, 2022 of $18.3M.
Sonoro Gold Corp., announced it plans to undertake a non-brokered private placement for gross proceeds of up to CAD $3M. The company will use the net proceeds to fund the ongoing development of a proposed heap leach mining operation at its Cerro Caliche project in Sonora.
Kootenay Silver Inc., announced a private placement for gross proceeds of $4M. Gross proceeds will be used for working capital requirements and other general corporate purposes (Columba project, Chihuahua).
First Majestic Silver Corp., announced that its Board of Directors has declared a cash dividend payment in the amount of USD $0.0057 per common share for Q1, 2023. The first quarter cash dividend will be paid to holders of record of First Majestic’s common shares as of the close of business on May 18, 2023, and will be distributed on or about June 9, 2023.
ON RESOURCES AND DEVELOPMENT
Xali Gold Corp., and its partner Sun River Gold Corp., received the change in soil use permit for its El Oro Tailings project in Mexico State. This is the main permit required for the El Oro Tailings project that allows moving out the tailings from the historical deposition site which is within the town of El Oro and to the industrial processing site outside of the town.
Bendito Resources Inc., presented results from the last 9 of 18 RC holes totaling 2,031m drilled at its El Alacran project in Sonora as part of the 2023 Phase 1 exploration program focused on demonstrating the southeastward extension of mineralization from the historical resources established at Loma Bonita and Mesa de Plata. Drilling highlights include hole BSS-23-011 with 0.13 g/t Au and 9 g/t Ag (0.24 g/t AuEq) over 33m, including 0.26 g/t Au and 20 g/t Ag (0.5 g/t AuEq) over 3m, plus 0.89 g/t Au and 22 g/t Ag (1,15 g/t AuEq) over 27m, including 1.89 g/t Au and 32 g/t Ag (2.27 g/t AuEq) over 6m, plus 1.32 g/t Au and 36 g/t Ag (1.74 g/t AuEq) over 3m; hole BSS-23-015 with 0.45 g/t Au and 2 g/t Ag (0.48 g/t AuEq) over 24m, including 2.37 g/t Au and 1 g/t Ag (2.39 g/t AuEq) over 3m, plus 0.27 g/t Au and 14 g/t Ag (0.44 g/t AuEq) over 63m, including 0.49 g/t Au and 39 g/t Ag (0.94 g/t AuEq) over 15m, plus 0.11 g/t Au and 17 g/t Ag (0.31 g/t AuEq) over 52.5m, including 0.21 g/t Au and 42 g/t Ag (0.71 g/t AuEq) over 7.5m; hole BSS-23-016 with 0.31 g/t Au and 11 g/t Ag (0.45 g/t AuEq) over 66m, including 2.26 g/t Au and 4 g/t Ag (2.3 g/t AuEq) over 7.5m, 8.06 g/t Au and 1 g/t Ag (8.07 g/t AgEq) over 1.5m, plus 0.15 g/t Au and 4 g/t Ag (0.2 g/t AuEq) over 19.5m, plus 0.16 g/t Au and 2 g/t Ag (0.19 g/t AuEq) over 12m; and hole BSS-23-018 with 0.16 g/t Au and 4 g/t Ag (0.21 g/t AuEq) over 9m, plus 0.08 g/t Au and 39 g/t Ag (0.53 g/t AuEq) over 93m, including 0.08 g/t Au and 84 g/t Ag (1.07 g/t AuEq) over 7.5m, plus 0.09 g/t Au and 59 g/t Ag (0.79 g/t AuEq) over 15m.
Silver Tiger Metals Inc., announced results from its ongoing drill program at its El Tigre project in Sonora. Highlights of the ongoing drilling program include hole ET-23-457 in the Sulphide Zone with 0.11 g/t Au, 297 g/t Ag, 0.28% Cu, 1.4% Pb, and 2.2% Zn (439 g/t AgEq) over 38.7m, including 0.17 g/t Au, 693 g/t Ag, 0.6% Cu, 3% Pb, and 4.6% Zn (987 g/t AgEq) over 15.8m, including 0.15 g/t Au, 1,100 g/t Ag, 0.87% Cu, 5.1% Pb, and 8% Zn (1,581 g/t AgEq) over 6.3m, including 0.13 g/t Au, 1,246 g/t Ag, 1% Cu, 6.4% Pb, and 13.4% Zn (1,949 g/t AgEq) over 3.4m, including 0.15 g/t Au, 1,943 g/t Ag, 1.58% Cu, 7.3% Pb, and 10.9% Zn (2,642 g/t AgEq) over 0.6m. “This hole added an additional 100 metres of down dip extent to east from Hole 428 to 457 and what it was thought was a thin zone of a little over a meter went to almost 39 meters of high grade mineralization. Step out drilling now continues south”.
Capstone Copper Corp., reported Mineral Reserves and Mineral Resources for its Cozamin property in Zacatecas as at January 1, 2023. The company announced Probable Mineral Reserves of 10.2M tonnes with grades of 1.6% Cu, 43 g/t Ag, 0.5% Zn, and 0.3% Pb. It also presented Measured + Indicated Resources of 19.7M tonnes with grades of 1.58% Cu, 47 g/t Ag, 1.1% Zn, and 0.4% Pb, and Inferred Resources of 12.3M tonnes with grades of 0.72% Cu, 38 g/t Ag, 2% Zn, and 0.8% Pb. (Mineral Reserve is reported inclusive of Mineral Resource).
GR Silver Mining Ltd., filed a NI 43-101 technical report to provide an updated resource estimate for its Plomosas project in Sinaloa as of March 15, 2023. The company reported Indicated Resources of 15M tonnes with grades of 117 g/t Ag, 0.18 g/t Au, 0.4% Pb, 0.6% Zn, and 0.03% Cu (179 g/t AgEq) for a total of 55M Oz Ag, 84.5K Oz Au, 143.4M Lb Pb, 201-6M Lb Zn, and 8.96M Lb Cu (85M Oz AgEq) and Inferred Resources of 9M tonnes with grades of 78 g/t Ag, 0.38 g/t Au, 0.7% Pb, 1% Zn, and 0.03% Cu (171 g/T AgEq) for a total of 22M Oz Ag, 108.2K Oz Au, 143.4M Lb Pb, 203.8M Lb Zn, and 6.7M Lb Cu (49M Oz AgEq).
GoGold Resources Inc., released additional results from its ongoing drilling campaign at Eagle Area within its Los Ricos South project in Jalisco. Drilling highlights include hole LRGAG-22-162 with 6.07 g/t Au and 1,064 g/t Ag (20.26 g/t AuEq or 1,519 g/t AgEq) over 31m, including 19.38 g/t Au and 3,922 g/t Ag (71.67 g/t AuEq or 5,375 g/t AgEq) over 8.1m, including 144 g/t Au and 36,319 g/t Ag (628.25 g/t AuEq or 47,119 g/t AgEq) over 0.7m; hole LRGAG-22-147 with 1.06 g/t Au and 41 g/t Ag (1.63 g/t AuEq or 122 g/t AgEq) over 46.6m, including 3.24 g/t Au and 76 g/t Ag (4.25 g/t AuEq or 319 g/t AgEq) over 13.4m, including 24.3 g/t Au and 45 g/t Ag (24.9 g/t AuEq or 1,867 g/t AgEq) over 0.8m; hole LRGAG-22-150 with 6.96 g/t Au and 65 g/t Ag (7.83 g/t AuEq or 587 g/t AgEq) over 11.3m, including 12.02 g/t Au and 100 g/t Ag (13.36 g/t AuEq or 1,002 g/t AgEq) over 6.3m, including 32.1 g/t Au and 157 g/t Ag (34.19 g/t AuEq or 2,564 g/t AgEq) over 1.1m; hole LRGAG-22-158 with 2.19 g/t Au and 138 g/t Ag (4.03 g/t AuEq or 302 g/t AgEq) over 24.6m, including 3.87 g/t Au and 340 g/t Ag (8.41 g/t AuEq or 631 g/t AgQ) over 8.8m, including 13.06 g/t Au and 2,660 g/t Ag (48.52 g/t AuEq or 3,639 g/t AgEq) over 0.8m; and hole LRGAG-22-161 with 2.51 g/t Au and 339 g/t Ag (7.03 g/t AuEq or 527 g/t AgEq) over 33m, including 5.16 g/t Au and 945 g/t Ag (17.76 g/t AuEq or 1,332 g/t AgEq) over 9.6m, including 19.58 g/t Au and 3,665 g/t Ag (68.46 g/t AuEq or 5,134 g/t AgEq) over 1.3m. GoGold continues to work toward an upcoming updated Los Ricos South Mineral Resource and Preliminary Economic Assessment, which is expected to be completed by the end of June, 2023.
Oroco Resource Corp., presented a Mineral Resource Estimate as of April 21, 2023 for its Santo Tomas project in Sinaloa. The company reported Indicated Resources of 487.3M tonnes with grades of 0.32% Cu, 0.009% Mo, 0.03 g/t Au, and 2 g/t Ag (0.36% CuEq) for a total of 3.4 B Lb Cu, 91.9M Lb Mo, 392.8K Oz Au, and 32.7M Oz Ag (3.86 B Lb CuEq), and Inferred Resources of 599.9M tonnes with grades of 0.32% Cu, 0.007% Mo, 0.03 g/t Au, and 2 g/t Ag (0.36% CuEq) for a total of 4.17 B Lb Cu, 95.6M Lb Mo, 500.6K Oz Au, and 38.5M Oz Ag (4.69 B Lb CuEq). Oroco believes Santo Tomas has a substantial resource that is exposed at or near surface and has robust potential to support a large, low-cost open-pit mining operation. “The MRE confirms the high potential of the project, which remains open to the north and south, with clear potential for further expansion of the resource and further conversion of MRE Inferred resources to an Indicated resource classification”.
Prime Mining Corp., announced an updated Mineral Resource Estimate for its Los Reyes property in Sinaloa. The company reported in the Mill Category a total of 16.6M tonnes of Indicated Resources with grades of 1.66 g/t Au and 60 g/t Ag (2.44 g/t AuEq) for a total of 888K Oz Au and 32.18M Oz Ag (1.3M Oz AuEq) contained, and Inferred Resources of 10.8M tonnes of 1.18 g/t Au and 47 g/t Ag (1.79 g(/t AuEq) for a total of 411K Oz Au and 16.39M Oz Ag (623K Oz AuEq) contained. In the Heap Leach Category Prime reported a total of 10.5M tonnes of Inferred Resources with grades of 0.37 g/t Au and 9 g/t Ag (0.49 g/t AuEq) for a total of 125K Oz Au and 3.08M Oz Ag (165K Oz AuEq), and Inferred Resources of 7.3M tones of 0.37 g/t Au and 8 g/t Ag (0.47 g/t AuEq) for a total of 86K Oz Au and 1.9M Oz Ag (111K Oz AuEq). Indicated Resources (Mill + Heap Leach) are 27.2M tonnes of 1.16 g/t Au and 40 g/t Ag (1.68 g/t AuEq) for a total of 1.01M Oz Au and 35.5M Oz Ag (1.47M Oz AuEq) and Inferred Resources (Mill + Heap Leach) of 18.1M tonnes of 0.85 g/t Au and 31 g/t Ag (1.26 g/t AuEq) for a total of 497K Oz Au and 18.3M Oz Ag (734K Oz AuEq).
Pan American Silver Corp., released results of eighth holes drilled at La Colorada Skarn project in Zacatecas. Drilling highlights include hole D-96-10-22 with 391 g/t Ag, 0.13% Cu, 10.8% Pb, and 8.5% Zn over 64.3m, including 914 g/t Ag, 0.19% Cu, 25.2% Pb, and 16.7% Zn over 23.25m, plus 154 g/t Ag, 0.03% Cu, 2.2% Pb, and 0.9% Zn over 22.75m, plus 27 g/t Ag, 0.23% Cu, 2.5% Pb, and 5% Zn over 13.3m, plus 37 g(/t Ag, 0.14% Cu, 1.1% Pb, and 6.4% Zn over 135.7m; hole D-96-12-23 with 233 g/t Ag, 0.1% Cu, 6.6% Pb, and 7.3% Zn over 109.55m, including 487 g/t Ag, 0.15% Cu, 15.5% Pb, and 10.1% Zn over 44.7m, plus 54 g/t Ag, 0.03% Cu, 1.3% Pb, and 2.6% Zn over 18m; hole D-96-09-22 with 106 g/t Ag, 0.03% Cu, 1.3% Pb, and 2.6% Zn over 5m, plus 123 g/t Ag, 0.11% Cu, 3.5%Pb, and 8.6% Zn over 21.2m, plus 162 g/t Ag, 0.05% Cu, 3.5% Pb, and 3.5% Zn over 26.95m, plus 98 g/t Ag, 0.07% Cu, 0.8% Pb, and 4% Zn over 72.6m; hole D-98-11-22 with 165 g/t Ag, 0.12% Cu, 4.4% Pb, and 9.3% Zn over 17.05m, plus 134 g/t Ag, 0.05% Cu, 5.3% Pb, and 6.9% Zn over 6.4m, plus 56 g/t Ag, 0.05% Cu, 1.6% Pb, and 4.2% Zn over 9.90m, plus 152 g/t Ag, 0.02% Cu, 0.9% Pb, and 2.8% Zn over 20.5m, plus 79 g/t Ag, 0.06% Cu, 0.6% Pb, and 1.9% Zn over 14.55m; hole U-138-22 with 122 g/t Ag, 0.08% Cu, 2.7% Pb, and 5.3% Zn over 4.05m, plus 193 g/t Ag, 0.15% Cu, 10.8% Pb, and 9.3% Zn over 71.35m, including 231 g/t Ag, 0.17% Cu, 13-1% Pb, and 11% Zn over 57.95m, plus 49 g/t Ag, 0.14% Cu, 0.4% Pb, and 1.1% Zn over 40.3m; hole U-112-22 with 80 g/t Ag, 0.03% Cu, 1.3% Pb, and 1.2% Zn over 15.25m, plus 141 g/t Ag, 0.06% Cu, 5.8% Pb, and 5.5% Zn over 53.15m, including 243 g/t Ag, 0.08% Cu, 11.3% Pb, and 8.3% Zn over 15.15m, plus 66 g/t Ag, 0.07% Cu, 0.6% Pb, and 3.5% Zn over 14.7m, plus 25 g/t Ag, 0.08% Cu, 1.7% Pb, and 3.8% Zn over 32.95m; and hole D-93-06-23 with 304 g/t Ag, 0.17% Cu, 4.7% Pb, and 2.5% Zn over 21.45m, plus 17 g/t Ag, 0.07% Cu, 1.7% Pb, and 3.8% Zn over 5.05m, plus 40 g/t Ag, 0.02% Cu, 2.7% Pb, and 3.5% Zn over 31.2m, plus 27g/t Ag, 0.1% Cu, 2.9% Pb, and 4.7% Zn over 143.3m, plus 22 g/t Ag, 0.06% Cu, 3.7% Pb, and 5.9% Zn over 5.1m, plus 49 g/t Ag, 0.25% Cu, 1.5% Pb, and 4.4% Zn over 74.2m.
Minera Alamos Inc., announced positive results of an independent Preliminary Economic Assessment for its Cerro de Oro project in Zacatecas. In April, 2023 it also completed the documentation necessary to formally proceed with the Cerro de Oro permitting process. “Discussions continue with a number of interested lending partners to provide the modest capital funding requirements for the development of the Cerro de Oro mine”.
Torex Gold Resources Inc., provided the second quarterly update on its Media Luna project in Guerrero. The Media Luna project continues to track overall schedule and budget. “At quarter-end, the project was 24% complete across engineering, procurement, underground development, and surface construction. With no major changes to the project execution plan, first concentrate production remains on track for late 2024, with commercial production still anticipated in early 2025. At quarter end, 34% of upfront project expenditures had been committed, including 22% incurred. The level of spending on the project is expected to increase throughout the remainder of the year, with total project expenditures of USD $390M to USD $440M guided in 2023.
ON DEALS AND CORPORATE ISSUES
Bear Creek Mining Corporation announced its CEO succession after the previous one decided to retire from such position. This appointment will be effective on June 5, 2023 (Mercedes mine, Sonora).
GR Silver Mining Ltd., announced the retirement of its CFO and the appointment of its replacement effective immediately (Plomosas project, Sinaloa).
Tarachi Gold Corp., signed a definitive agreement dated May 2, 2023 with Compañía Minera de Atocha S.A. de C.V., for the sale of Magistral Tailings project in Durango. The company expects to receive USD $5.7M as follow: USD $2.5M on or before closing; USD $0.5 of the USD $1M currently held in Canadian escrow account will be released to Tarachi on or before closing; The remaining USD $500K in the escrow account will be released to Tarachi when Atocha concludes negotiations with the Ejido Magistral, or after 12 months, whichever occurs first; USD $500K will be paid to Tarachi six months from closing, less any contingency costs, if any, that arise after closing that were incurred by Tarachi but not identified during due diligence. US$500K will be paid to Tarachi when 50% of the tailings located on the Magistral Project have been mined, sold and/or processed or after the first complete calendar year of operation at the Magistral Project, whichever occurs first; USD $500K will be paid to Tarachi when 100% of the Magistral Tailings have been mined, sold and/or processed or after the second complete calendar year of operation at the Magistral Project, whichever occurs first; the amount of value-added tax currently owing as that tax benefit is realized by Atocha during operations and product sales from the Magistral Project will be paid to Tarachi, estimated to total approximately USD $650K. Tarachi anticipates the tax benefit will be realized by Atocha and paid to Tarachi within the first year of commercial operations at the Magistral Project.
ON SOCIAL RESPONSIBILITY
Almaden Minerals Ltd., completed a social impact assessment (SIA) relating to its Ixtaca project in Puebla, and underlying mineral claim area, and the completion of a human rights impact assessment (HRIA) that examines the potential impacts that could be caused if the Ixtaca project is developed in a manner consistent with the Ixtaca Feasibility Study. “The SIA concluded that there were no elements identified that would justify the cancellation of the concessions so long as the necessary social management measures were in place to avoid, mitigate or compensate for the potential negative impacts and amplify the positive ones. The HRIA represents a much more significant and holistic study than the SIA, as it aims to predict, identify, characterize, and assess the potential positive and negative impacts that the Ixtaca project could have during its lifespan on the human rights of both indigenous and non-indigenous communities located within its areas of influence and on other identified project stakeholders. In the event potential impacts are identified, the HRIA proposes strategies to amplify the positive and mitigate or compensate for the negative”.
Five companies released drill results from their projects in Mexico. GoGold Resources took the lead with its high grade gold and silver long intercepts at is structurally controlled low to intermediate sulfidation Los Ricos South project in Jalisco. Still, Pan American’s La Colorada Skarn system in Zacatecas, an emerging world class deposit, takes the credit of showing several good grade intervals over 100 m long, dominating by far the lead and zinc categories, and bearing relevant results in silver and copper. Current results are from infill and exploration holes. An example of the exploration potential is one hole drilled 250 m from the closest previous drilling, which returned 27.10 m averaging 125 ppm Ag, 0.06% Cu, 1.0% Pb, 2.7% Zn.
Bendito’s Alacrán project in Sonora is an interesting property, with high sulfidation mineralization related to a porphyry copper system. The present results are from the Puerto de Oro and San Simon targets, characterized by “sub-vertical hydrothermal and crackle breccias, up to 25 meters in width, that crosscut multiple sub-horizontal layers of early residual and vuggy silica varying from a few meters to 50 meters in thickness. The host rock is a volcanic pile of andesite-dacite composition that exhibits mostly alunite-dickite alteration assemblage”.
Infinitum Copper’s La Adelita project in Sonora is a copper skarn system, with the latest results coming from the drilling of a magneto telluric geophysical anomaly which stretches for 1.4 km and up to 200 m in width. Silver Tiger’s results are from the sulfide zone of its El tigre project in Sonora. This is also an interesting intermediate sulfidation system with strong silver-gold in veins, disseminated gold in favorable volcanic layers and now the Sulfide Zone with strong Pb-Zn and moderate to strong silver and moderate copper values over sizable widths in the contact between the crystalline basement and the base of the volcanic pile.