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

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

By Jorge Cirett

During the 40th week of the year (September 30th to October 6th, 2019), at least 20 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, Gold production declined 2.8% in 2018. On the illegal blockade at the Peñasquito mine in Zacatecas, the president of Mexico asked for both parties to solve their differences (not pronouncing himself on the illegality of the blockade). Frisco and Cemex suffered big losses at the Mexican stock exchange. ON EXPLORATION, in Sonora, Magna Gold signed a LOI on the San Judas project in Sonora; Colibri Resource is to complete mapping and sampling on its Evelyn project. In Sinaloa, Kootenay Silver signed a surface access agreement on the Copalito project. In Zacatecas, Alien Metals is eyeing a drill program on its San Celso project.  ON MINING, Alien Metals presented financial results for the first semester 2019. Torex Gold produced 138,100 Oz Au at El Limon-Guajes mine in Guerrero during the Q3 2019. ON FINANCING, Southern Silver, Millrock Resources and Alien Metals granted 3.25 M, 1.88 M and 7 M incentive options respectively to officers, directors, employees and consultants. Fortuna Silver closed a bought deal financing for US$40 M. Azure Minerals raised $4 M. ON RESOURCES AND DEVELOPMENT, GoGold resources released results for one more hole at its Los Ricos project in Jalisco. Premier Gold released results on drilling at the Lupita extension on its Mercedes mine in Sonora. Goldplay disclosed channel surface sample results at its San Marcial property in Sinaloa. Silver Bull provided results from eleven more drill holes at the Sierra Mojada project in Coahuila (halted by an illegal blockade). ON DEALS AND CORPORATE ISSUES, Magna Gold signed a LOI on the San Judas project in Sonora. Silver Bull halted exploration at its Sierra Mojada project in Coahuila, due to an illegal blockade by a mining cooperative demanding a royalty payment on a property that is not in production. Fortuna Silver terminated the option on Prospero Silver’s Pachuca SE project in Hidalgo. Millrock and Riverside entered into a definitive agreement on the La Union, Los Cuarentas, El Pima, El Valle, and Llano del Nogal projects in Sonora. Santacruz Silver approved the acquisition of the remaining 50% of PCG Mining S.A. de C.V., parent company of Carrizal Mining, S.A. de C.V.. ON SOCIAL RESPONSIBILITY. No relevant news.

ON MEXICO ISSUES

  • Gold production in Mexico declined by 2.8% in July 2019. This is the 28th consecutive month of production contractions, the longest since 1981, according to INEGI (Instituto Nacional de Estadística y Geografía). In 2016 the production declined by 5.2%, in 2017 another 13.6% and a further 9.7% in 2018. Mineral products with annual increments include zinc at 10.7%, iron pellets with 2.9%, lead with 2.5%, sulphur with 1.6% and coal with 0.8%.
  • On Peñasquito’s illegal blockade, Mexico’s president, Andres Manuel Lopez Obrador, asked both parties two solve their differences in the conflict that has now more than two weeks (he did not mention the blockade being illegal). Newmont Goldcorp has offered more than US$25 M in investments, amount that the blockaders reckon as lacking. The Peñasquito mine produced 272,000 Oz Au last year, and had re-started production in mid-June after a first illegal blockade by truckers wanting to get a contract and locals accusing the company of water availability issues.
  • To the 3rd of October Frisco and Cemex have suffered big losses in the Mexican stock exchange (S&P/BMV IPC), 13.76% and 6.24% respectively, under the current commercial instability between USA and the European Union. Frisco is one of the biggest mining companies in Mexico, with operations in Baja California, Sonora, Chihuahua, Zacatecas and Aguascalientes (although Frisco is also known for its scant releases on reserves and resources). Cemex is the biggest Mexican cement producer, with operations internationally.

ON EXPLORATION

  • Magna Gold Corp. signed a LOI to explore the San Judas project in Sonora. The two mineral concessions cover 2806 ha underlain by a Precambrian basement composed of granite, gneiss, pegmatites and schist. “The entire sequence is affected by multiple deformations and the emplacement of intrusions such as leucocratic granites and andesitic dikes”. Gold mineralization is associated with quartz-breccia veins, quartz veins and “quartz stockworks emplaced along a series of parallel, foliated, low-angle shear zones within the igneous-metamorphic sequence”. Assays in an historical rock chip sample database have values of up to 230 gpt gold.
  • Colibri Resource Corp. contracted Auro Metallum Geology Consulting Services of Hermosillo, in Sonora, to complete a geological mapping study of its 506 ha Evelyn Gold Project near Caborca in Sonora. Recent sampling has returned up to 4.8 gpt Au from abundant quartz in sub-crop in a new zone identified by soil sampling.
  • Alien Metals Ltd. updated on the exploration of its San Celso and Los Campos projects in Zacatecas. At San Celso a next step of work will examine a drill program funded by a third party to test the strike extension of the main veins, and the depth extension below the existing workings.
  • Kootenay Silver Inc. signed a surface access agreement with the local ejido at the Copalito project in Sinaloa. Said agreement allows the company to mapping, sampling, geophysics, trenching and drilling. The 3,700 ha project covers a low sulfidation epithermal system with numerous veins, traced over up to 2 km of length, and 0.5 to 15 meters in width. Sampling has returned assays of up to 8.2 gpt Au, 532 gpt Ag, 17.4% Zn, 9.9% Pb and 5.1% Cu.

ON MINING

  • Alien Metals Ltd. presented its financial results for the first semester of 2019. As of the end of the period the company had total assets of US$1.2 M, of which US$0.4 M was cash, and current total liabilities for US$0.1 M (Donovan 2, Zacatecas).
  • Torex Gold Resources Inc. announced gold production of 138,100 ounces of gold during Q3 2019, on track to meet it 2019 production guidance of 430,000 ounces. During the period plant throughput averaged 12,370 tonnes per day (tpd), underground mining 1,110 tpd, open pit mining 14,270 tpd (El Limon-Guajes, Guerrero).

ON FINANCING

  • Southern Silver Exploration Corp. granted 3.25 M incentive stock options to directors, officers and consultants, exercisable at $0.27 per common share for a period of five years. The rolling incentive stock option plan was also approved, pursuant to which a maximum of 10% of the issued shares will be reserved for issuance under the plan. (Cerro Las Minitas, Durango).
  • Millrock Resources Inc. approved a grant of stock options to employees, officers, directors and advisers to the company, granting a total of 1.88 M stock options exercisable at $0.09 for five years. The company is also to settle debt owed for deferred cash compensation to certain officers, directors and employees by issuing 819 K Millrock shares (Batamote, Sonora).
  • Alien Metals Ltd. granted 7 M options to its technical director, Brill Brodie. All shares are exercisable from 1 October 2019, of which 3 M can be exercised at 0.22 pence, 3 M at 0.30 pence and 4 M at 0.45 pence (San Celso, Zacatecas).
  • Fortuna Silver Mines Inc. closed the previously announced bought deal offering of senior subordinated unsecured convertible debentures for an aggregate principal amount of US$40 M. “The Debentures mature on October 31, 2024 and will bear interest at a rate of 4.65% per annum, payable semi-annually in arrears on the last business day of April and October in each year, commencing on April 30, 2020. The Debentures will be convertible at the holder’s option into common shares in the capital of the Company” at a conversion price of US$5.00 per share (San José, Oaxaca).
  • Azure Minerals Ltd. raised $4 M (before costs) through a placement to institutional and sophisticated investors “to relaunch an aggressive exploration push on the Alacrán silver and gold projects” in Sonora. Azure is to undertake drilling to increase mineral resources at the Loma Bonita Au-Ag deposit, today standing at 150 K Oz Au, 4.8 M Oz Ag in 5.4 M tonnes @ 0.9 gpt Au, 28 gpt Ag.

ON RESOURCES AND DEVELOPMENT

  • GoGold Resources Inc. released results from one more hole completed on the San Juan area of its Los Ricos project in Jalisco. The hole returned 21.0 m @ 1.38 gpt Au, 146 gpt Ag (3.33 gpt AuEq), including 5.0 m @ 4.36 gpt Au, 436 gpt Ag (10.2 gpt AuEq). The San Juan area is located 400 m NW from the Los Ricos Main area.
  • Premier Gold Mines Inc. released results from its drilling program focused on delineating new mineral resources in the Lupita Extension at its Mercedes mine in Sonora. Highlighted results comprise 3.6 m @ 7.18 gpt Au, 54 gpt Ag; 1.8 m @ 24.24 gpt Au, 179 gpt Ag; 3.4 m @ 8.86 gpt Au, 67 gpt Ag; 3.1 m @ 13.65 gpt Au, 80 gpt Ag. The Neo target is 400 m north of San Martin is a possible extension of the Diluvio system, with one of three drill holes returning 3.1 m @ 13.65 gpt Au, 80 gpt Ag.
  • Goldplay Exploration Ltd. disclosed results from channel sampling on the Faisanes target of the San Marcial project in Sinaloa. The samples were cut by saw along the access road walls and road surface, returning 10 m @ 98 gpt Ag, 0.06 gpt Au) 0.6 m @ 587 gpt Ag, nil Au; 1.0 m @ 214 gpt Ag, nil Au; 1.1 m @ 42 gpt Ag, nil Au; 1.0 m @ 41 gpt Ag, 0.26 gpt Au.
  • Silver Bull Resources Inc. provided results from eleven more drill holes from its Sierra Mojada project in Coahuila. Highlights from the holes comprise: 17.1 m of oxide mineralization @ 120 gpt Ag, 0.43% Cu (including 1.35 m @ 539 gpt Ag, 0.27% Cu and 2.25 m @ 198 gpt Ag, 1.66% Cu and 0.55 m @ 403 gpt Ag, 1.6% Cu); 5.2 m of sulfide mineralization @ 149 gpt Ag, 0.87% Cu, 4.67% Zn. Due to an illegal blockade by a cooperative of miners who hold a royalty on two claims, the drill program has been paused.

ON DEALS AND CORPORATE ISSUES

  • Magna Gold Corp. entered into a binding letter of intent (LOI) with the private owners of the two mining concessions forming the 2,806 ha San Judas project in Sonora. The deal involves payments of US$50 K on signature of the definitive agreement, US$50 K on the first year, US$100 K on the second year, US$150 K on the third year, US$300 K on the fourth year and US$1.,03 M on the fifth year, all figures plus VAT.
  • Silver Bull Resources Inc. halted all work on the Sierra Mojada project in Coahuila due to a blockade by a cooperative of local miners called Sociedad Cooperativa de Exploración Minera Mineros Norteños, S.C.L.. The company has an agreement with the said cooperative on two mineral concessions in the eastern part of the Sierra Mojada project, under which they have the right of a 2% production royalty. Since 2014 the cooperative filed a suit fighting for payment of the royalty, notwithstanding the lack of production from the property. The cooperative also demands payments of wages for individuals that have not worked for the company, neither received employment commitments from Silver Bull. The cooperative has now illegally blockaded access to the project in an attempt to force a settlement before the final ruling. “Silver Bull is working with authorities to resolve the situation in a safe, fair, and timely manner”.
  • Fortuna Silver Mines Inc. announced the termination of the Pachuca SE property option agreement signed previously with Prospero Silver Corp. (San José, Oaxaca).
  • Millrock Resources Inc. entered definitive agreements to sell the La Union, Los Cuarentas, El Pima, El Valle, and Llano del Nogal claim blocks to Riverside Resources Inc., as well a copy of its exploration database and exploration vehicles also to Riverside. Consideration paid to Millrock is $35 K cash and 150 K Riverside shares, and a 0.5% NSR on the El Pima, El Valle and Santa Rosalia (conditional on this one) claims. “Millrock has retained the El Batamote copper porphyry project and this will be the sole focus of Millrock’s exploration effort in Mexico going forward” (Batamote, Sonora).
  • Santacruz Silver Mining Ltd. shareholders approved in its last annual general meeting held in October 1, 2019, the re-election of directors, the auditor of the company and the approval of the existing 10% rolling stock option plan. Also approved was the acquisition of the remaining 50% of the outstanding shares of PCG Mining S.A. de C.V. from a non-arm’s length party in consideration for the issue of 30 M common shares of the company. Upon completion of the transaction the company will own 100% of PCG, which is the parent holding company of Carrizal Mining, S.A. de C.V..

ON SOCIAL RESPONSIBILITY

  • No Relevant News.

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

On the image below: Sheeted quartz veining in metamorphic rocks 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 September, 2019.

Quartz vein displaying lattice  bladed texture

By Miguel A Heredia

During the thirty-nine week of the year (September 23th to September 29th, 2019), at least 21 press releases were announced by companies working in Mexico, with seven informing on exploration results, six disclosing deals and corporate issues, three announcing financial rounds, two communicating production results, one reporting on resources and development of their projects, one commenting on Mexican issues, and one notifying on social responsibility.  ON MEXICO ISSUES, Los Gatos mine was inaugurated in San José del Sitio, Chihuahua with an investment of USD $366M.  ON EXPLORATION, In Baja California Norte, One World Lithium announced the continuation of the phase 3 drilling program at its Salar del Diablo project. In Sonora, Ridgestone released historical assays results from its Rebeico project. In Chihuahua, Kootenay reported drilling results from its Columba project.  In Durango, Canasil reported high grade sampling results from its Nora property. In Jalisco, GoGold released drill results from its Los Ricos project. In Veracruz, Mexican Gold announced 3,000m of drilling and its exploration plan for the remainder 2019 on its Las Minas project, and Azucar Minerals released drilling results from its El Cobre project. ON MINING, Mexus Gold provided an update on its Santa Elena mine in Sonora. Azure also provided an update on the first phase small-scale mining program at its Oposura project in Sonora. ON FINANCING, Aztec Minerals applied to the TSX to extend the term of 2,551,250 common share purchase warrants (Cervantes project, Sonora). Silver Viper closed a private placement for gross proceeds of $4M (La Virginia project, Sonora). Gold Resource declared its monthly dividend for September 2019 to shareholders (Arista mine, Oaxaca).  ON RESOURCES AND DEVELOPMENT, Prime informed that the company completed a formal visit to its Los Reyes property in Sinaloa, to attend meetings with local stakeholders, to secure surface access and begin site preparation, and to initiate exploration and engineering work for the planned production phase. ON DEALS AND CORPORATE ISSUES, Advance Gold announced that a geophysical adviser was added to its exploration team (Tabasquena project, Zacatecas). Colibri Resources entered into a property option agreement with Tocvan Ventures Corp., on its Pilar property in Sonora. Consolidated Zinc completed the acquisition of a 100% interest of the Plomosas mine in Chihuahua. Vizsla entered into a definitive share purchase agreement to acquire an option on the Panuco-Copala mining camp in Sinaloa. Ridgestone entered in an agreement to acquire a 100% interest in 10 mining concessions adjacent to its Rebeico project in Sonora. ON SOCIAL RESPONSIBILITY, Fortuna Silver, through its subsidiary Minera Cuzcatlán, has invested MXP $177.2M in social programs in Oaxaca, Mexico.

 ON MEXICO ISSUES

  • Los Gatos mine was inaugurated in San José del Sitio, Chihuahua. The governor of Chihuahua State, Javier Corral, participated in the inauguration of the Los Gatos mines, located in San Jose del Sitio, Chihuahua. The mine was built with an investment of USD$ 366M among the Japanese company Dowa Mining and the American Sunshine Silver Mining company, for an estimated daily production of 2,500 tons of ore, which will be processed in the same plant with state-of-the-art technology, to obtain concentrates of Ag, Pb, and Zn. Governor Javier Corral celebrated the alliance of Japanese and American capital that occupied 1,800 people in construction and will give permanent employment to another 510 on its operation.

ON EXPLORATION

  • One World Lithium, announced the continuation of the phase 3 drilling program at its Salar del Diablo project in Baja California Norte. The phase three will consists of 3 holes adjacent to previously partly drilled holes 1, 9, and 11, and 1 hole located 50km to the south, for a total of 2,400m. Each hole has planned depths of 600m. Each hole will be drilled with a mud rotary rig that will set casing to 200 meters and then core drilled to the planned total depth of 600 meters. Objectives of the drilling program are “to determine the presence of aquifers that may contain concentrations of lithium in brines at depth; to collect representative, depth-specific groundwater samples for chemical analysis of major elements, including Li; to obtain drill core samples for analysis for drainable porosity that will assist in resource estimations; and to use borehole lithologic descriptions to identify hydrogeologic units and the stratigraphy of the basin; to help calibrate existing and future geophysical surveys; and to create a hydrogeologic model to develop a potential future Li resource”.
  • Ridgestone Mining Inc., released historical assays results from its Rebeico project in Sonora. These assays are from rock chip samples obtained by the Servicio Geológico Mexicano (SGM) at El Cobre, Tres Hermanos, Amargosa I and II, La Amargosita, and Campo Seco old workings. At El Cobre, two samples taken on the vein reported 0.8 g/t Au, 39 g/t Ag, 1.67% Cu, and 0.12% Mo over 1.18m, and 0.7 g/t Au, 50 g/t Ag, 0.51% Cu, and 0.18% Mo over 1.12m. In addition, two dump samples returned 0.5 g/t Au, 102 g/t Ag, 2.41% Cu, and 0.30% Mo, and 0.35 g/t Au, 38 g/t Ag, 2.07% Cu, and 1.22% Mo. At Tres Hermanos, highlights include 14.6 g/t Au and 23 g/t Ag over 1.30m; 8.13 g/t Au and 17 g/t Ag over 1.20m; 3.4 g/t Au, 23 g/t Ag, and 0.14% Cu over 1.90m; and 1.4 g/t Au, 137 g/t Ag, and 2.72% Cu over 1.0m. At La Amargosa I and II, 10 g/t Au and 3.48% Cu over 0.7m; 5.86 g/t Au and 1.85% Cu over 0.68m; and 2.66 g/t Au and 0.55% Cu over 0.71m. At La Amargosita, 17 g/t Au, 73 g/t Ag, and 0.45% Cu over 1.30m and one dump sample with 0.1 g/t Au, 777 g/t Ag, and 1.56% Cu. At Campo Seco, 0.1 g/t Au, 18 g/t Ag and 7.49% Cu over 0.55m.
  • Kootenay Silver Inc., reported drilling results from three holes drilled on the F Vein and five holes drilled on the I Vein at its Columba project in Chihuahua. Significant drill intersections were encountered in hole CDH-19-011 with 133 g/t Ag, 0.04% Pb, and 0.15% Zn over 11.0m, including 245 g/t Ag, 0.13 g/t Au, 0.1% Pb, and 0.3% Zn over 5.0m, and including 648 g/t Ag, 0.63 g/t Au, 0.2% Pb, and 0.6% Zn over 1.0m, on the F Vein, and 228 g/t Ag, 0.1% Pb, and 0.6% Zn over 1.2m and 102 g/t Ag, and 0.1% Zn over 1.68m on the foot wall vein; in hole CDH-19-012 with 184 g/t Ag, 0.2 g/t Au, 0.1% Pb, and 0.4% Zn over 11.0m, including 476 g/t Ag, 0.66 g/t Au, 0.3% Pb, and 1% Zn over 3.15m, including 476 g/t Ag, 0.66 g/t Au, 0.3% Pb, and 1% Zn over 3.15m, and including 755 g/t Ag, 1.16 g/t Au, 0.5% Pb, and 1.7% Zn over 1.75m on the F Vein, and three intersections on the hanging wall of 113 g/t Ag, 0.1% Pb, and 0.1% Zn over 1.35m, 699 g/t Ag, 0.4% Pb, and 0.8% Zn over 2.1m, and 113 g/t Ag, 0.1% Pb, and 0.1% Zn over 0.6m; in hole CDH-19-013 with 273 g/t Ag, 0.1% Pb, and 0.2% Zn over 4.15m on I Vein, including 697 g/t Ag, 0.15% Pb, and 0.3% Zn over 0.65m, and 328 g/t Ag, 0.1% Pb, and 0.2% Zn over 2.65m; in hole  CDH-19-014 with 261 g/t Ag, 0.3% Pb, and 0.6% Zn over 5.01m on the I Vein, and 894 g/t Ag, and 0.4% Zn over 0.42m on the hanging wall; in hole CDH-19-015 with 1,005 g/t Ag, 0.4% Pb, and 0.7% Zn over 0.3m on the I Vein; and in hole CDH-29-016 with 357 g/t Ag on the I Vein. “Drilling continues at the property with a total of 24 holes completed to date and the program being expanded from 3000 meters to approximately 4500 meters. It is anticipated that a total of 35 to 40 holes will be completed by early November with assay results continuing into December”.
  • Canasil Resources Inc., reported high grade results from 21 surface samples taken along the Candy vein, 31 samples collected from adjacent country rocks, and 12 dump samples at its Nora project in Durango. The Candy vein, an epithermal Au-Ag target, has not been previously drilled. There has been limited, historical mining of the Candy vein, and small mineralized waste dumps are present. Average of the 21 samples collected along the Candy vein is 1.69 g/t Au, 140 g/t Ag, 0.4% Cu, 1.6% Pb, and 0.6% Zn over 0.68m, with the highest Au value of 12.55 g/t Au, 12 g/t Ag, 1% Cu, 2.7% Pb, and 0.7% Zn over 0.40m, and the highest Ag value of 605 g/t Ag, 3.72 g/t Au, 0.97% Cu, 1.2% Pb, and 0.4% Zn over 1.0m. The average grade of the 12 dump samples is 1.40 g/t Au, 86 g/t Ag, 1.1% Cu, 3.4% Pb, and 1.6% Zn. These results will be interpreted to identify possible locations for subsequent drilling.
  • GoGold Resources Inc., released drilling results of four new holes drilled at Los Ricos Main Area and three new holes drilled at San Juan Area from its Los Ricos project in Jalisco. Significant drill intersections at Los Ricos Main Area were encountered in hole LRGG-19-038 with 0.72 g/t Au and 165 g/t Ag (2.92 g/t AuEq) over 21.2m, including 1.33 g/t Au and 302 g/t Ag (5.36 g/t AuEq); in hole LRGG-19-040 with 0.4 g/t Au and 115 g/t Ag (1.93 g/t AuEq) over 17.5m, including 0.89 g/t Au and 281 g/t Ag (4.64 g/t AuEq) over 4.5m; in hole LRRGG-19-041 with 1.14 g/t Au and 115 g/t Ag (2.68 g/t AuEq) over 23.3 m, including 4.6 g/t Au and 398 g/t Ag (9.91 g/t AuEq) over 5.5m; and in hole LRGG-19-042 with 0.47 g/t Au and 69 g/t Ag (1.40 g/t AuEq) over 29.2m, including 1.65 g/t Au and 224 g/t Ag (4.63 g/t AuEq) over 6.7m. At San Juan Area, the most significant drill intersections were encountered in hole LRGG-19-045 with 0.59 g/t Au and 34 g/t Ag (1.04 g/t AuEq) over 20m, including 2.92 g/t Au and 91 g/t Ag (4.123 g/t AuEq) over 3.5m; and in hole LRGG-19-046 with 0.36 g/t Au and 62 g/t Ag (1.19 g/t AuEq) over 36m, including 1.3 g/t Au and 220 g/t Ag (4.24 g/t AuEq) over 5.5m.
  • Mexican Gold Corp., announced an aggressive exploration plan for the remainder of 2019 at its Las Minas project in Veracruz, including a drill program of 3,000m. The company plans to drill test the Pueblo Nuevo, Cinco Señores TEM anomaly, Las Minillas, and El Dorado targets, and test the conceptual targets of Sub-Sill and the Mancuerna Dike Swarm for potential skarn mineralization.
  • Azucar Minerals Ltd., reported results from its ongoing drilling program at its El Cobre project in Veracruz at Norte, Villa Rica, Porvenir and Suegro targets. The most significant intervals were encountered at the Norte Target, where the hole EC-19-077 intersected 0.26 g/t Au and 0.11% Cu over 43.50m, including 0.53 g/t Au and 0.21% Cu and the hole EC-19-082 intersected 0.25 g/t Au and 0.12% Cu over 237.30m, including 0.63 g/t Au and 0.27% Cu over 44.45m, and another interval of 1.01 g/t Au and 0.33% Cu over 12.75m. At El Porvenir target, hole EC-19-078 intersected 82 g/t Au and 0.02% Cu over 12m, including 20.6 g/t Au and 0.01% Cu over 1.0m.

ON MINING

  • Mexus Gold US, provided an update on its Santa Elena mine in Sonora. The compnay informed that all systems are working properly but the Merrill Crow Au recovery plant currently in use is running at 30 gpm and producing 3Oz Au per day. Mexus is moving a new plant to Santa Elena which will have the capacity to run up to 500 gpm. This new equipment is expected to be operational in October, which allows the company to reach its long term production goal.
  • Azure Minerals Limited provided an update on the first phase small-scale mining program at its Oposura project in Sonora. Azure extracted and stockpiled an estimate of 6,100 tons of 13.4% Zn and 10.7% Pb from open pit, including 2,100 tonnes of 24% Zn and 18.3% Pb. Tonnages and grades exceed significantly the mineral resource estimate for this part of the deposit. Ore processing will start in the December quarter and will continue for 2-3 months. “Azure will produce separate Zn and Pb-Ag concentrates and expects to sell them on the spot market to locally-based metals traders or smelters, several of which have expressed strong interest in these products”.

ON FINANCING

  • Aztec Minerals Corp., applied to TSX to extend the term of an aggregate of 2,551,250 common share purchase warrants by one year from October 21, 2019 to October 21, 2020. “Each warrant entitles the holder to acquire one common share in the capital of the company at an exercise price of $0.25 per common share until the current expiry date of October 21, 2019. An aggregate of 23,750 warrants have been exercised to date and 550K warrants are held, directly or indirectly, by insiders of the company. The extension of the term of the warrants for an additional year is subject to the acceptance of TSX” (Cervantes project, Sonora).
  • Silver Viper Minerals Corp., closed a private placement for gross proceeds of $4M. Net proceeds will be used to continue exploration and development of its la Virginia project in Sonora, and for general corporate and working capital purposes.
  • Gold Resource Corporation, declared its monthly dividend of 1/6 of a cent per common share for September 2019, payable in October 23, 2019 to their shareholders (Arista mine, Oaxaca).

ON RESOURCES AND DEVELOPMENT

  • Prime Mining Corp., informed that the company completed a formal visit to its Los Reyes property in Sinaloa, to attend meetings with local stakeholders, to secure surface access and begin site preparation and to initiate exploration and engineering work for the planned production phase. The company has initiated a 5,000m trenching and surface sampling program on mineralized structures to provide valuable assay data to be used in conjunction with down drill data to update resource estimation. “The current trenching program will provide greater confidence in the conversion of these blocks to indicated resources for the upcoming resource estimate”.

ON DEALS AND CORPORATE ISSUES

  • Advance Gold Corp., announced that a geophysical adviser with over 40 years of international mining exploration experience was added to its exploration team (Tabasquena project, Zacatecas).
  • Colibri Resources Corporation, entered into a property option agreement with Tocvan Venture Corp., on its 100% owned Pilar project in Sonora. Tocvan has been granted a 60 days exclusivity period to complete a due diligence by paying Colibri $25K. If the due diligence is positive and Tocvan decide to continue the option agreement, it will have the option to earn 51% of the property over a 5 years period by issuing 2M common shares, paying CAD $100K to Colibri, 60 days after signing the final agreement, and performing CAD $250K of exploration expenditures at Pilar property during the first year. On year 2, Tocvan will pay CAD $ 50K to Colibri and will perform CAD $350K of exploration expenditures. On year 3, Tocvan will pay CAD $75K and issue 1M common shares to Colibri, and perform CAD $400K of exploration expenditures. On year 4, Tocvan will pay CAD $75K and issue 1M common shares to Colibri, and perform CAD $500K of exploration expenditures. On year 5, Tocvan will pay CAD $75K and issue 1M common shares to Colibri, and perform CAD $500k of exploration expenditures. Upon completion of these terms Tocvan will be granted a 6 month option to purchase the remaining 49% of Pilar in exchange for CAD $2M and a 2% NSR on the project, of which 1% could be sold by Colibri for a price of CAD $1M. Tocvan will operate the project during the option period.
  • Consolidated Zinc Limited, completed the acquisition of a 100% interest of the Plomosas mine in Chihuahua by acquiring the remaining 10% interest from Retec Guaru S.A. de C.V.
  • Vizsla Resources Corp., entered in a definitive share purchase agreement to acquire an option over the consolidated mineral rights, infrastructure and processing facilities comprising the large scale Panuco-Copala mining camp in Sinaloa. Vizsla has agreed to acquire all of the outstanding shares of Canam Alpine Ventures Ltd. Vizsla will acquire Canam for a total staged consideration of 18M common shares of Vizsla by issue 6M common shares on closing of the acquisition, 6.5M common shares upon definition of a resource greater than 200K Oz AuEq, and 5.5M common shares upon exercise of the option. Also, Vizsla will pay USD $700K on signing, USD $450K in the first anniversary of signing, USD $5,184,500 and work commitment of USD $3,423,000 in the second anniversary of signing, USD $6,846,000 in the third anniversary of signing, USD $8,557,500 in the fourth anniversary of signing, USD $9,269,000 in the fifth anniversary of signing, and USD $11,907,425 in the sixth anniversary of signing.
  • Ridgestone Mining Inc., entered in an agreement to purchase a 100% interest in 10 mining concessions adjacent to its Rebeico project in Sonora. These 10 mining concessions cover an area of 3,292 hectares and contain numerous artisanal old workings and mineralized outcrops. Terms of the acquisition include a cash payment of USD $83K and the issuance of 5M common shares of Ridgestone to the vendor.

ON SOCIAL RESPONSIBILITY

  • Fortuna Silver Mines Inc., through its subsidiary Minera Cuzcatlán has invested MXP $172.2M in San Jose del Progreso, Oaxaca and surrounding communities, since it started operations in 2011. One of the most outstanding projects to date is the breeding and fattening of lambs in the community of El Cuajilote. This has been successfully promoted by Compañía Minera Cuzcatlán since 2016. The company contributes with inputs and technical advice, while producers provide labor. Additionally, the suppliers of inputs are 100% local, also benefiting companies in the region. Currently 70% of 400 square meters of productive infrastructure have been installed. The amount of sheep bellies, of a target of 90, has been increased by 45% by keeping them in the feeding and reproduction program. Likewise, the percentage of births has increased from 80% to 125%. In this way, Compañía Minera Cuzcatlán makes a difference for families benefiting from this and other programs, since they receive financial support by providing inputs for food by the company and training according to the productive or reproductive season.

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

On the picture above, quartz vein with stibnite and displaying lattice  bladed texture in a prospect in San Luis Potosi, Mexico.  Photo by Miguel A Heredia.

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

IMG_0970aBy Jorge Cirett

During the 36th week of the year (September 2nd to September 8th, 2019), at least 20 press releases were announced by companies working in Mexico. ON MEXICO ISSUES Karen Flores Arredondo was appointed General Director of CAMIMEX. VVC Exploration is searching for financing to start operations at Samalayuca.  ON EXPLORATION, in Baja California, One World Lithium is to conduct a field visit to its Salar del Diablo project. In Sonora, Minera Alamos announced the discovery of a new target, Gold Ridge. In Chihuahua, Ethos Gold released results on 16 RC holes at the Purisima project. In Coahuila, Prize Mining released assay results of several targets on a 20 km long trend. In Zacatecas, Galore received assays for the first two holes at El Alamo target of its Dos Santos project; Advance Gold completed an IP survey at the Tabasqueña project; Alien Metals released exploration results at San Celso, Los Campos and Donovan 2. ON MINING, Argonaut Gold completed a fourth water well, and now has the capacity to sustain production at 30 K tonnes a day at San Agustin, Zacatecas. ON FINANCING, Mexican Gold granted 650 K stock options. Defiant Silver seeks to extend the expiry date of some warrants. SilverCrest Metals granted options for 975 K shares. Telson Mining received conditional approval for a US$12 M loan. Southern Silver Corp.  closed the final tranche of financing for gross proceeds of $1.1 M. Silver Viper intends to raise up to $3.0 M through a private placement financing round. ON RESOURCES AND DEVELOPMENT, GoGold released results for four more holes at its Los Ricos project in Jalisco. Pan American Silver reported all-inclusive reserves and resources of 203.3 M Oz Ag, 2.16 M Oz Au on its La Colorada, Dolores and La Bolsa properties. Minera Alamos received one more permit to start construction at its Santana project in Sonora. Goldplay Exploration released underground channel sampling results from San Marcial, Sinaloa. ON DEALS AND CORPORATE ISSUES, Mexican Gold Corp. appointed new directors and announced an incoming new resource estimate for Las Minas, Veracruz. Consolidated Zinc acquired the remaining 10% of the Plomosas mine rights to gain a 100% interest. The company also announced a favourable court ruling on a land use agreement for the Plomosas mine.   ON SOCIAL RESPONSIBILITY. No relevant news.

ON MEXICO ISSUES

  • The sectional president from Samalayuca, Chihuahua, Javier Melendez Cardona, was interviewed on the coming mining investment on La Gloria by VVC Exploration Corp. He explained the project is in the financing stage of a process that is to greatly benefit the local communities.
  • Karen Flores Arredondo is appointed CAMIMEX’s (Cámara Minera de México) General Director as of September 15, 2019. Flores Arredondo has recently worked for Agnico Eagle in Mexico, and has held posts with other private enterprises and government agencies related to the Mining Industry.

ON EXPLORATION

  • Prize Mining Corp. released assay results from surface sampling at its Manto Negro project in Coahuila. The sampling on the Apache, San Jose and Las Curvas concessions returned up to 1.3 m @ 3.86% Cu, 44 gpt Ag; 1.2 m @ 2.62% Cu, 58 gpt Ag; 1.8 m @ 2.31% Cu, 28 gpt Ag and six chip samples running 7.7% to 29.3% Cu and 190 to 759 gpt Ag. At San Jose a best sample interval of 1.8 m @ 2.3% Cu, 28 gpt Ag and up to 17.1% Cu and 1,689 gpt Ag from dumps. At Las Curvas the best mineralised interval was 2 m @ 2.5% Cu, 33 gpt Ag and up to 23% Cu, 710 gpt Ag from dumps. Prize is pursuing a mineralised horizon over 20 km in length in the Formation San Marcos red-bed sandstone below the Cupido Formation limestone.
  • Ethos Gold Corp. released results of the completed 16 reverse circulation (RC) drill campaign at its Purisima project in Chihuahua. At the site Ethos targeted shallow gold mineralisation in epithermal banded quartz veining and associated silicification and stockworks. Highlighted results include 3.05 m @ 0.76 gpt Au; 7.62 m @ 0.52 gpt Au; 9.14 m @ 0.43 gpt Au, 14 gpt Ag; 6.10 m @ 0.40 gpt Au, 9 gpt Ag; 15.24 m @ 0.50 gpt Au; 6.10 m @ 0.50 gpt Au. Ethos decided to terminate the Purisima option agreements.
  • Galore Resources Inc. received assays for the first two core holes at El Alamo target, part of its Dos Santos project in Zacatecas. Highlighted results comprise 3.40 m @ 3.46 gpt Au, 3 gpt Ag (including 1.20 m @ 8.89 gpt Au); 10.90 m @ 14 gpt Ag (including 1.0 m @ 88 gpt Ag); 9.15 m @ 2.02 gpt Au, 5 gpt Ag. The results also define intervals tens of meters in width with anomalous silver in the 1-10 ppm range. Galore informs these results, along with some other tracer elements, support the view that this is the upper part of an epithermal system.
  • Minera Alamos Inc. announced the identification of Gold Ridge, a new mineralised zone on its Santana property in Sonora. One third of 147 rock samples collected exhibit grades >0.10 gpt Au, ranging from 0.1 gpt to 3.6 gpt Au and 5 gpt Ag to 669 gpt Ag, with the mineralised surface covering an area of 1,000 m x 200 m located 2-3 km from the currently planned heap leach operations at Santana.
  • Advance Gold Corp. completed a 3D induced polarization (IP) geophysical survey on its Tabaqueña project in Zacatecas. The 9.6 line kilometre survey highlighted a 250 wide by 800 m long continuous chargeability anomaly.
  • One World Lithium Inc. announced the visit of Mike Rosko of Montgomery & Associates to the Salar del Diablo project in Baja California, along with the president and director of OWL. The visit is to include previous and proposed drill site locations as well as surface geological features.
  • Alien Metals Ltd. released results from recent exploration at its San Celso, Los Campos and Donovan 2 projects in Zacatecas. At San Celso, further assays include 18 anomalous samples averaging 272 gpt Ag, with a high of 1,275 gpt Ag. At Los Campos, 14 anomalous samples averaged 185 gpt Ag, with a peak of 547 gpt Ag. At Donovan 2, a sample returned 2.68 gpt Au.

ON MINING

  • Argonaut Gold Inc. completed the fourth water well at its San Agustin operation in Durango. The new well demonstrated sufficient water capacity to meet the needs of the operation to run at 30 K tonnes per day of ore, which is planned for the fourth quarter of 2019.

ON FINANCING

  • Mexican Gold Corp. granted 650 K stock options to an officer and an employee of the company (Las Minas, Veracruz).
  • Defiant Silver Corp. intends to seek TSX Venture Exchange approval to extend the expiry date of 6.19 M warrants, previously issued, by one year (San Acacio, Zacatecas).
  • SilverCrest Metals Inc. granted stock options for 975 K shares to directors, officers, employees and consultants of the company (Las Chispas, Sonora).
  • Telson Mining Corp. received conditional approval for a US$12 M medium term loan from an international investment bank to finalize construction at Tahuehueto, Durango.
  • Southern Silver Exploration Corp. closed the final tranche of the previously announced private placement, for gross proceeds of $1.1 M. In total the company closed two tranches for gross proceeds of $4.2 M (Cerro Las Minitas, Durango).
  • Silver Viper Minerals Corp. intends to overtake a private placement financing to raise gross proceeds of up to $3.0 M (La Virginia, Sonora).

ON RESOURCES AND DEVELOPMENT

  • GoGold Resources Inc. released results for three more diamond drill holes at Los Ricos main area and the first hole drilled at the San Juan target of its Los Ricos project in Jalisco. Highlighted drill core intervals comprise 6.2 m @ 1.17 gpt Au, 158 gpt Ag; 15.5 m @ 0.53 gpt Au, 84 gpt Ag (including 2.7 m @ 2.04 gpt Au, 217 gpt Ag); 17.1 m @ 1.59 gpt Au, 364 gpt Ag (including 5.6 m @ 3.81 gpt Au, 818 gpt Ag) at Los Ricos and 16.9 m @ 0.54 gpt Au, 68 gpt Ag (including 5.0 m @ 1.46 gpt Au, 148 gpt Ag) at the San Juan target.
  • Pan American Silver Corp. reported mineral reserves of 557 M Oz Ag, 5.1 M Oz Au, of which 141.6 M Oz Ag and 1.58 M Oz Au are in its three properties in Mexico: La Colorada, Dolores and La Bolsa. Reserves and resources all inclusive comprise 148.3 M Oz Ag, 129.8 K Oz Au at La Colorada in Zacatecas, 45.4 M Oz Ag, 1,383.5 K Oz Au at Dolores in Chihuahua and 9.6 M Oz Ag, 651.7 K Oz Au at La Bolsa in Sonora.Pan American Silver Reserves1
  • Minera Alamos Inc. received the ETJ (Estudio Tecnico Justificativo) for the Santana Gold project in Sonora. Combined with the previously approved MIA (Manifiesto de Impacto Ambiental) the company holds all the necessary rights to initiate construction of commercial scale operations at Santana.
  • Goldplay Exploration Ltd. released results from underground channel sampling in a re-opened old adit at the Faisanes target of its San Marcial project in Sinaloa. A zone of 11 m @ 155 gpt includes 6 m @ 232 gpt Ag, ending in mineralisation at the deepest sampled point within the tunnel. “The Company is reviewing plans to extend the tunnel beyond this high-grade Interval”.

ON DEALS AND CORPORATE ISSUES

  • Mexican Gold Corp. announced the appointment of Matt Liard as Vice President Exploration, Sonny Bernales as Senior Geologist and Michael Kanevsky as CFO. The company outsourced an updated 43-101 resource estimate with an underground cut-off grade, that should be released in October 2019 (Las Minas, Veracruz).
  • Consolidated Zinc Ltd. entered into a binding agreement with Retec Guaru S.A. de C.V. under which CZC is to acquire the remaining 10% interest in the Plomosas mine in Chihuahua. “The purchase consideration for the acquisition of the Retec interest in MLAZ is a 1% Net Smelter Return Royalty (the “Royalty”) from the sale of zinc and lead concentrates produced from Plomosas”. Completion of the agreement is expected by 30 September 2019.
  • Consolidated Zinc Ltd. announced that the Appeals Court of Chihuahua ruled in favour of the company’s subsidiary regarding a dispute over a land use agreement with a local rancher in place for its Plomosas mine in Chihuahua.

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: Quartz veinlet on an orogenic gold project in Oaxaca. Picture by Jorge Cirett

IMG_0970a

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

 

Flow -banded rhyolite

By Miguel A Heredia

During the thirty-five week of the year (July 26th to September 1st, 2019), at least 22 press releases were announced by companies working in Mexico, with seven disclosing deals and corporate issues, six announcing financial rounds, four communicating production results, three reporting on resources and development of their projects, and two informing on exploration results.  ON MEXICO ISSUES, no relevant news.  ON EXPLORATION, In Chihuahua, Kootenay reported drilling results from four holes drilled at its Columba project. In Jalisco, GoGold reported drilling results from ten new holes drilled at its Los Ricos project. ON MINING, Argonaut extended El Castillo mine life with zero-cost collar gold price protection program. Mexus Gold commenced leaching of 5K tonnes of mineralized material at its Santa Elena mine in Sonora.  Telson processed 2,166 tonnes of concentrates from its Tahuehueto project in Durango and announced significant metallurgical recoveries. Santacruz reported Q2, 2019 production and financial results from their Mexican operations.  ON FINANCING, Excellon completed an $11.5M bought deal financing (La Platosa mine, Durango). First Mexican Gold announced consolidation and private placement for gross proceeds of $0.5M (Guadalupe property, Sonora). Sable announced a strategic investment with Osisko Gold Royalty for potential proceeds of $12.58M (Margarita project, Chihuahua). Silver Spruce closed a private placement for gross proceeds of $261,250 (Pino de Plata project, Chihuahua). New Gold closed a bought deal financing for gross proceeds of CDN $150M (Cerro San Pedro mine, San Luis Potosi).  Gold Resource declared monthly dividend to shareholders (Arista deposit, Oaxaca). ON RESOURCES AND DEVELOPMENT, Santacruz updated mineral resource estimate at its Veta Grande project in Zacatecas. Impact Silver reported results of the successful dense media separation (DMS) study at its Capire project in Mexico State. SilverCrest released in-fill drilling results from its Las Chispas project in Sonora.  ON DEALS AND CORPORATE ISSUES, Prize Mining reported results from its annual general meeting of shareholders (Manto Negro project, Coahuila). SilverCrest announced that the company will begin trading on TSX (Las Chispas project, Sonora).  Golden Minerals received continued listing standard notice from New York Stock Exchange (Santa María project, Chihuahua). Azure revealed that it has regained 100% of the Alacran Au-Ag project from Teck. Consolidated Zinc announced that the Federal Court of Mexico has ruled in its favour on the land use agreement dispute with the landowner. Minera Alamos announced the closing of the Guadalupe de los Reyes option and the acquisition of common shares of Prime Mining. Newmont Goldcorp announced successful completion of consent solicitation for its 5.875% notes due 2035 (Peñasquito mine, Zacatecas).  ON SOCIAL RESPONSIBILITY, no relevant news.

 ON MEXICO ISSUES

  • No relevant news

ON EXPLORATION

  • Kootenay Silver Inc., released drilling results from four new holes drilled at its Columba project in Chihuahua. Significant drill intersections were encountered in hole CDH-19-009 with 516 g/t Ag and 0.2% Zn over 2.90m, including 1,070 g/t Ag and 0.4% Zn over 0.90m; hole CDH-19-008 with 112 g/t Ag over 33.5m, including 408 g/t Ag, 0.7% Pb, and 1.1% Zn over 4.85m; and hole CDH-19-007 with 417 g/t Ag and 0.1% Zn over 1.68m and other interval of 693 g/t Ag, 0.4% Pb, and 1.13% Zn over 1.55m. The ongoing drilling program has showed that the F vein has returned high grades over good widths, the known veins have excellent continuity along strike and to depth, and the newly discovered veins in the hanging wall also contain high grades. Kootenay has drilled 16 holes to date of a planned first phase 25-30 holes program.
  • GoGold Resources Inc., announced drilling results from ten new holes drilled at its Los Ricos project in Jalisco: three at the Los Ricos main area and seven on the Cerro Colorado target located 1.5Km to the south of the main area. The most significant drill intersections were encountered in hole LRGG-19-028 located at the Los Ricos main area, with 1.21 g/t Au and 133 g/t Ag (2.99 g/t AuEq) over 27.5m, including 2.93 g/t Au and 294 g/t Ag (6.85 g/t AuEq) over 11m, and on the Cerro Colorado target in hole LRGC-19-004 with 1.28 g/t Au and 107 g/t Ag (2.71 g/t AuEq) over 11.5m. The drilling program has now been expanded for additional testing along 3.2Km of the Los Ricos mineralized zone while at the Cerro Colorado target it has showed that the quartz vein system has good grades over a strike length of at least 500m.

ON MINING

  • Argonaut Gold Inc., extended El Castillo mine life as it entered into a series of zero-cost collar option contracts. The contracts cover 145K Oz Au through mid-2022. The floor price of the monthly gold collars has been set at $1,450/Oz with the ceiling price of the collars ranging from $1,630/Oz in Q4, 2019 to $1,760/Oz for H1, 2022.
  • Mexus Gold US, commenced leaching of 5K tonnes of ore material at its Santa Elena mine in Sonora, and expects to recover from 5 to 8 Oz Au per day. The ore material has been tested and is returning values as high as 54.74 g/t Au.
  • Telson Mining Corporation, processed 2,166 tonnes of concentrate with average grades of 5.32 g/t Au, 38 g/t Ag, 1.7% Pb, 3.2% Zn, and 0.24% Cu from its Tahuehueto project in Durango, to produce 82.9 tonnes of Au rich Pb concentrate grading 101 g/t Au, 702 g/t Ag, 38.8% Pb, and 5.29%Cu, and 130.8 tonnes of Zn concentrate grading 40.8% Zn, 12.02 g/t Au, and 94 g/t Ag. Telson has achieved the highest recoveries to date at 86% Au, 85% Ag, 86% Pb, 77% Zn, and 84% Cu.
  • Santacruz Silver Mining Ltd., reported Q2, 2019 production and financial results from their Mexican operation in Zacatecas and San Luis Potosi. Consolidated mining operations generated a gross profit of $251, including gross profit from Rosario mine in San Luis Potosi of $54, and gross loss from Veta Grande mine in Zacatecas of $691 plus mine services gross profit of $888. Net loss after taxes was $1,137, cash cost per Oz AgEq of $16.07 and an AISC of $18.37. Santacruz processed 37,156 tonnes at Veta Grande to produce 240.2K Oz AgEq, at a cash cost of $17.68 per Oz AgEq produced and an AISC of $19.70 per Oz AgEq. At El Rosario, it processed 20.789 tonnes to produce 133.1K Oz AgEq at a cash cost of $14.23 per Oz AgEq produced and an AISC of $16.81 per Oz AgEq.

ON FINANCING

  • Excellon Resources Inc., completed its previously announced bought deal offering for $11.5M. Gross proceeds will be used to fund exploration and capital expenditures at its Platosa project in Durango, and its Evolution project in Zacatecas. In connection with the offering, insiders purchased an aggregate of 1,015,000 units for a total consideration of $1M.
  • First Mexican Gold Corp., announced consolidation of its common shares on a ten for one basis, and proposes to close a private placement for gross proceeds of $0.5M. The closing of the offering is anticipated to take place on or about September 30, 2019, or such other later date as the Company may agree (Guadalupe project, Sonora).
  • Sable Resources Ltd., announced a strategic investment with Osisko Gold Royalty for potential proceeds of $12.58M. This financing will provide Sable with the funding to progress its exploration objectives over its entire portfolio for the next 4 years. In connection with the financing, Osisko will have a right of first refusal over any royalty, stream or similar right in Sable properties, equity participation right to maintain pro-rata ownership interest so long as Osisko owns more than 5% of the outstanding common shares of Sable, and the right to nominate one person to Sable´s board of directors so long as Osisko owns more than 5% of the outstanding common shares of Sable. Additionally, Sable granted Osisko the right to acquire 1% NSR on properties controlled by Sable´s wholly subsidiaries in Mexico for $5M. The NSR will extend to any additional properties acquired by Sable within a period of 4 years from the closing of the NSR agreement. Sable also has granted Osisko the right to acquire an additional 1% NSR for $5.5M on all minerals produced from initial and future properties control by Sable until the expiration of the NSR agreement (Margarita and Vinata projects, Chihuahua).
  • Silver Spruce Resources Inc., closed a private placement for net proceeds of $261,250. Funds will be used to conduct due diligences and exploration activities (Pino de Plata project, Chihuahua).
  • New Gold Inc., closed a bought deal financing for gross proceeds of CAD $150M (Cerro San Pedro mine, San Luis Potosi).
  • Gold Resource Corporation, declared its August dividend of 1/6 of a cent per common share payable on September 23, 2019 to shareholders (Arista deposit, Oaxaca).

ON RESOURCES AND DEVELOPMENT

  • Santacruz Silver Mining Ltd., updated mineral resource estimate at its Veta Grande project in Zacatecas. Considering a cut-off of 100 g/t Ag, the inferred resources is 3,954,729 tonnes of 136 g/t Ag, 0.14 g/t Au, and 0.11% combined Pb+Zn (153 g/t AgEq) to contain 47M Oz AgEq.
  • Impact Silver Corp., reported results of the successful Dense Media Separation (DMS) study at its Capire open pit VMS deposit located within the Zacualpan mining district in Mexico State. “These preliminary tests indicate that it may be possible to pre-concentrate crushed run of mine material using a low cost Dense Medium Separation (DMS) plant prior to milling and mineral processing, thereby reducing the overall cost of processing at Capire and potentially bringing it back into economic production”. An initial test showed that 25% of the sample retained over 99% of Ag, Pb, and Zn minerals, and over 97% of Cu and Au in a heavy liquid separation (HLS) concentrate. A second test showed that over 42% of the sample retained 93% of Ag and Pb minerals and 79% to 92% of Cu, Au, and Zn in an HLS concentrate. “These results suggest that the addition of a DMS pre-concentration plant to the Capire process flow sheet could unlock some significant operating cost improvements that would subsequently allow a lowering of cut off grade and access to otherwise uneconomic areas of the Capire deposit”.
  • SilverCrest Metals Inc., released in-fill drilling results of 33 holes from the Babi Sur vein within its Las Chispas project in Sonora. The in-fill drilling has increased the confidence of resources and high-grade continuity in the vein. The most significant drill intersections were encountered in hole BAS19-63 with 8.51 g/t Au and 717 g/t Ag (1,355 g/t AgEq) over 3.1m of true width; hole BAS19-57 with 3.1 g/t Au and 305 g/t Ag (536 g/t AgEq) over 8.8m; and hole BAS19-49 with 5.32 g/t Au and 374 g/t Ag (773 g/t AgEq) over 3.8m. “The Babi Sur Vein and Babi Sur HW Vein are still open to depth and down plunge to the southeast. Unnamed veins are under review for possible continuity and announcement(s) of additional vein discoveries. Approximately 25 to 35 additional in-fill and expansion holes, for a minimum of 7,000 metres, are planned for the Babi Sur veins in H2, 2019”.

ON DEALS AND CORPORATE ISSUES

  • Prize Mining Corporation, reported results from its annual general meeting of shareholders. It also plans to change the name of the company to Boundary Gold and Copper Mining Ltd, and a consolidation of its common shares on a five for one basis. Change name is subject to the approval of the TSX (Manto Negro project, Coahuila).
  • SilverCrest Metals Inc., announced that it will begin trading on the Toronto Stock Exchange (TSX) following its graduation from the Toronto Stock Exchange Venture (TSXV) (Las Chispas project, Sonora).
  • Golden Minerals Company, received continued listing standard notice from the New York Stock Exchange. Specifically, the company is not in compliance with section 1003 (a) (iii) since it reported stockholder´s equity of less than $6M as of June 30, 2019 and losses from continuing operations and/or net losses in its five most recent fiscal years. In order to maintain its listing on the NYSE, Golden was asked to submit a plan of compliance no later than September 18, 2019 advising how the company intends to regain compliance with section 1003 (a) (iii) of the company guide by February 19, 2021 (Santa Maria project, Chihuahua).
  • Azure Minerals Limited, revealed that it has regained 100% of the Alacran Au-Ag project in Sonora from Teck. Alacran project host global resources of 32.2M Oz Ag and 150K Oz Au, being 27.4M Oz Ag at Loma de Plata deposit and 4.8M Oz Ag and 150K Oz Au at Loma Bonita deposit. “Azure accepted a first offer proposal to lock-in all Teck’s rights and interest in the project by issuing Teck more than 27.5 million shares – effectively bumping Teck’s stake in Azure to 19.9%”. Teck also will retain a 0.5% NSR over Alacran project.
  • Consolidated Zinc Limited, announced that the Federal Court of Mexico has ruled in its favour on the land use agreement dispute with the local ranch owner, cancelling the prior appeal Court of Chihuahua which had ruled in favour of the landowner. The company continues to operate freely at its Plomosas mine and in accordance with the agreement.
  • Minera Alamos Inc., announced the closing of the Guadalupe de Los Reyes option in Sinaloa, and the acquisition of 9.45M of common shares of Prime Mining Corp. It represents 16.1% of the outstanding common shares of Prime. Following the transaction, Minera Alamos also acquired warrants to purchase up to 3.35M additional common shares of Prime with the closing date being December 28th, 2019.
  • Newmont Goldcorp Corporation, announced successful completion of consent solicitation for its 5.875% notes due 2035. “Holders of approximately $575,330,000 (95.89%) in aggregate principal amount of the outstanding notes had validly delivered (and not validly revoked) their consent to the amendments. The company will pay, a cash payment equal to $33.33 per $1,000 aggregate principal amount of the notes for which holders had validly delivered (and not validly revoked) their consent to the amendments on or prior to the expiration date (August 23, 2019). The company intends to pay the consent fee on August 28, 2019”.

ON SOCIAL RESPONSIBILITY

  • No relevant news

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

On the picture above, flow-banded rhyolite in a prospect in Guanajuato, Mexico.  Photo by Miguel A Heredia.

 

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

159 - copia

By Jorge Cirett

During the 34th week of the year (August 19th to August 25th, 2019), at least 23 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, the Charcas municipality in San Luis Potosi is awaiting for a favorable resolution by the Supreme Court on the use of the Mining Fund. ON EXPLORATION, in Baja California, One World Lithium plans a diamond drilling campaign at its Salar del Diablo project. In Sonora, Minaurum Gold released drilling results on its Alamos Silver project. In Durango, Canasil updated on exploration of its Salamandra, Nora, and Vizcaino projects. In Zacatecas, Canasil updated on exploration of La Esperanza. In Oaxaca, Megastar reported interesting surface sample results at its Yautepec project. ON MINING, Mexus Gold continues piling material on the heaps at its Santa Elena mine. Fortuna Silver reported an underground fatality at the San Jose mine in Oaxaca. ON FINANCING, Discovery Metals granted options to officers, directors, employees and consultants. SilverCrest Metals closed a private placement for C$4.56 M. Argonaut Gold entered into an agreement for gross proceeds of C$4 M. Avino Silver granted options and 1.73 M restricted share units to its directors, officers, employees and consultants. Millrock received an extension regarding the filing of documents in respect of a private placement. Kootenay Silver closed its non-brokered private placement financing for gross proceeds of $5 M. Tamino Minerals intends to raise capital. ON RESOURCES AND DEVELOPMENT, Aura Minerals reported that a geophysical survey indicates a mineralised body might open to depth at its Aranzazu mine, in Zacatecas. SilverCrest Metals received the explosives permit, acquired water rights and paid the remaining mining concessions at its Las Chispas project in Sonora. ON DEALS AND CORPORATE ISSUES, Magna Gold completed the acquisition of Las Marias and Las Cabanas groups of concessions in Sonora, adjacent to its flagship Mercedes project. GoGold renegotiated the acquisition agreement on Los Ricos property, Jalisco, to speed up the purchase and lower the amount of the full transaction by $5.4 M. Torex Gold hedged the production of 96 K Oz Au. Bacanora Lithium presented an update on the approval of Ganfeng Lithium investment on Bacanora by the Chinese authorities. ON SOCIAL RESPONSIBILITY. No relevant news.

ON MEXICO ISSUES

  • Mining municipalities in San Luis Potosi demand to receive the Mining Fund. The municipality of Charcas, in San Luis Potosi, presented a legal complaint to the Supreme Court to avoid the use of these funds (gathered by the payment on a royalty from mining proceeds) for programs unrelated to mining. The municipality president, Manuel López Lara, said these resources are needed to provide vital infrastructure to the community, and that they are awaiting a favorable resolution by the Supreme Court.

ON EXPLORATION

  • One World Lithium Inc. appointed Montgomery and Associates as operator for its upcoming drill programs on its Salar del Diablo lithium brine project in Baja California. Initially four diamond holes are to be drilled to 600 m depth to collect 20 groundwater samples at specified depths using a depth specific packer system.
  • Minaurum Gold Inc. released further drill results from its Alamos Silver project in Sonora. With the latest results Minaurum has now tested 14 of the 20 veins systems in the project. Highlighted recent results comprise 3.80 m @ 415 gpt Ag, 2.68 gpt Au, 1.37% Cu, 6.2% Pb, 9.2% Zn (including 0.95 m @ 1,566 gpt Ag, 6.72 gpt Au, 4.48% Cu, 9.3% Pb, 10.1% Zn); 0.95 m @ 425 gpt Ag, 0.32% Cu, 3.2% Pb, 1.3% Zn; 1.95 m @ 261 gpt Ag; 0.90 m @ 337 gpt Ag; 0.90 m @ 307 gpt Ag; 1.05 m @ 134 gpt Ag, 0.31% Cu, 1.2% Pb, 3.9% Zn. Minaurum reports high grade silver intercepts in 10 of the 14 veins drilled to date, and plans to drill six more vein systems before beginning follow-up drilling on veins that have the potential to host volumes of high-grade mineralization similar to that of the historic Quintera and Promontorio mines.
  • Canasil Resources Inc. presented a review of its main projects in central Mexico. At La Esperanza, in Zacatecas, there is a series of epithermal veins on a 15 km long corridor, with drilling at the La Esperanza vein returning up 11.23 m true width (TW) @ 219 gpt Ag, 0.74 gpt Au, 0.9% Zn, 0.4% Pb (including 1.11 m @ 2,281 gpt Ag, 6.39 gpt Au, 2.2% Zn, 1.2% Pb.  At Salamandra, in Durango, a rhyolite dome intruding sedimentary rocks has returned drill intercepts of up to 9.5 m @ 102 gpt Ag, 0.5% Zn; 10.0 m @ 71 gpt Ag, 3.5% Zn, 1.3% Pb; 7.89 m @ 166 gpt Ag, 1.2% Cu, 1.2% Zn, 0.6% Pb (including 2.30 m @ 393 gpt Ag, 3.6% Cu, 2.8% Zn, 0.4% Pb). At Nora, in Durango, samples on epithermal veins have returned up to 1.0 m @ 1.98 gpt Au, 514 gpt Ag, 1.03% Cu, 3.3% Zn, 4.4 % Pb. At Vizcaino, in Zacatecas, the gold-anomalous Pamplona vein is 1 to 12 m in width over 2 km of length, with chalcedonic quartz hosted in rhyolites.
  • Megastar Development Corp. reported assay results from surface sampling at its Yautepec property in Oaxaca. Results from a sinter zone and a bounding quartz vein of 162 samples returned up to 308 gpt Ag, 1.07 gpt Au, 99 ppm Cu, 464 ppm Pb, 548 ppm Zn, 102 ppm Mo, 92,600 ppm (9.26%) As, 307 ppm Sb. These high numbers are very encouraging on a high-level epithermal system like the one exposed at this project.

ON MINING

  • Mexus Gold US. has piled 4,000 tons @ 2.8 gpt Au on the heap for leaching at its Santa Elena mine in Sonora (not to mistake for First Majestic’s Santa Elena mine, also in Sonora).
  • Fortuna Silver Mines Inc. reports a fatal accident involving a contractor’s employee at its San Jose mine in Oaxaca. “The accident involved a scooptram operating underground, and the individual fatally injured was the driver”.

ON FINANCING

  • Discovery Metals Corp. granted 5.3 M options to certain officers, directors, employees and/or consultants (Puerto Rico, Coahuila).
  • SilverCrest Metals Inc. closed the private placement with SSR Mining Inc., pursuant to which SSR elected to exercise its equity participation right to maintain a 9.9% interest in SilverCrest by investing C$4.56 M. Upon closing of this transaction, SSR Mining holds 9,000,645 common shares of SilverCrest (Las Chispas, Sonora).
  • Argonaut Gold Inc. entered into an agreement with Cormark Securities Inc. to act as lead underwriter of a syndicate of underwriters that are to buy shares of the company for aggregate gross proceeds of C$4 M (La Colorada, Sonora).
  • Avino Silver & Gold Mines Ltd. granted 526 K incentive options and 1.73 M restricted share units to its directors, officers, employees and consultants (Avino, Durango).
  • Millrock Resources Inc. announced the TSX Venture Exchange granted Millrock an extension of the deadline to file materials in respect of the private placement financing previously announced (Batamote, Sonora).
  • Sable Resources Ltd. announced the completion of distribution of 29.9 M common shares of Talisker Resources Ltd. to shareholders of the company. “The distribution of the Talisker Shares was effected as a reduction in the stated capital of the common shares of the Company…. The Company previously received the Talisker Shares in consideration for the assignment of certain mineral resource properties located in the Province of British Columbia on April 18, 2019” (Margarita, Chihuahua).
  • Kootenay Silver Inc. closed its non-brokered private placement financing for gross proceeds of $5 M. Finder fees totaling $200 K were paid to Mackie Research Capital Corp. with 1.25 M common shares issued and 625 K warrants (La Cigarra, Chihuahua).
  • Tamino Minerals Inc. announced its intentions to raise capital. Currently Tamino has issued 370.6 M shares, of which 220.8 M are restricted and 149.8 M are deemed free trading (El Volcan, Sonora).

ON RESOURCES AND DEVELOPMENT

  • Aura Minerals Inc. reported that a geophysical study at its Aranzazu mine in Zacatecas suggests the Glory Hole skarn may open down dip for a further 500 to 700 m from the current resource base, and also down plunge to southeast towards Cabrestante, which may represent potential for an increase of life of mine if confirmed by drilling.
  • SilverCrest Metals Inc. received approval from Secretaria de la Defensa Nacional (SEDENA) for the operational storage and use of explosives at its Las Chispas Project in Sonora. SilverCrest also acquired local water rights for Las Chispas and exercised its last outstanding option agreement to fully acquire the remaining four of the 28 concessions at Las Chispas, thereby obtaining 100% ownership in all Las Chispas mining concessions containing vein mineral resources.

ON DEALS AND CORPORATE ISSUES

  • Magna Gold Corp. completed the acquisition of the Las Marias property and las Cabanas mineral claims in Sonora“. Las Marias Property consists of 7 mining concessions covering 646 hectares adjacent to the Mercedes Property and Las Cabanas consists of 2 claims covering 248 hectares located approximately 10 km south-west of the Mercedes Property in Sonora, Mexico. The total purchase price for the new mineral concessions and other rights was $250,000 and the issuance of 1,000,000 common shares.”
  • GoGold Resources Inc. replaced the original option agreement for the Los Ricos property in Jalisco for a concession agreement. GoGold is now required to make a $500 K payment upon signing, $3.22 M to be paid on installments over 24 months, and 9.05 M shares of GoGold common shares to be delivered in equal numbers over 24 months. In addition, the company entered into an agreement to acquire the existing 2% NSR for $1 M in equal installments over 36 months and 4.87 M shares delivered in equal numbers over an 18 month period. This agreement is stated to save GoGold $5.4 M.
  • Torex Gold Resources Inc. entered into a series of no-cost collar hedges, with 96 K Oz Au hedged over the next 12 months. “The floor price of the monthly gold collars has been set at $1,400/oz with the ceiling price of the collars ranging from $1,666/oz in September 2019 to $1,768/oz in August 2020.”
  • Bacanora Lithium PLC. informed the agreements with Ganfeng Lithium Co. Ltd. have been submitted to the Chinese authorities for approval and completion. With the already received approvals by the PRC Ministry of Commerce and the National Development and Reform Commission, it is anticipated that the final approval from the State Administration of Foreign Exchange will be received following a Ganfeng board meeting to be held in the coming weeks (Sonora Lithium project, Sonora).

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

On the image below: Ricardo Ramonett collecting a stream sediment sample in Oaxaca. Picture by Jorge Cirett

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

By Jorge Cirett

During the 16th week of the year (April 15th to April 21st, 2019), at least 28 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, a lower court in Puebla ruled Mexico’s mineral title system unconstitutional based on consultation not being required before issuing the title. Inhabitants of San Antonio, Baja California Sur, manifested in support for the construction of the San Antonio mine. ON EXPLORATION, In Sonora, Aztec Gold delineated several new targets using geophysics at Cervantes; San Marcos disclosed explorations plans for its properties in the year. In Jalisco, GoGold released interesting results from drilling at Los Ricos. ON MINING, Avino Silver, Sierra Metals, First Majestic, Gold Resource and Hecla disclosed production results for Q1 2019.
Fresnillo PLC presented its annual report 2018.  ON FINANCING, Ridgestone Mining, Oroco and Camrova raised $1.12 M; 800 K and 12 K respectively. Sonoro and Minaurum granted options to consultants and directors. Minaurum was named to the Venture 50tm. Sierra Metals entered into an automatic purchase plan. ON RESOURCES AND DEVELOPMENT, Goldplay reported channel sample results from a new zone at its San Marcial project in Sinaloa. SilverCrest Metals released good metallurgical results from its Las Chispas property in Sonora. ON DEALS AND CORPORATE ISSUES, Newmont Goldcorp Corp. has been delivered. Consolidated Zinc presented notice of its annual general meeting. Aura completed the sale of 80% interest of its Taviche project to Minaurum.

ON MEXICO ISSUES

  • Almaden Minerals Ltd. informed that “a lower court in Puebla State has ruled that Mexico’s mineral title system is unconstitutional because consultation is not required before the granting of mineral title………..This ruling can be appealed by both the Government of Mexico and Almaden. The Company believes that this lawsuit is part of a broad effort by special interest groups to change the mining law and there are other similar actions active across Mexico”. Almaden stated that no communities within the company’s current mining concessions on its Ixtaca project in Puebla are party to this lawsuit.
  • Fresnillo PLC. Presented its 2018 annual report. It is here recommended to all interested in the mining business in Mexico to take a look to the report (http://www.fresnilloplc.com/media/412015/fres-30452-annual-report-2018-web.pdf), especially on the section “Managing our risks”. In the said section, the risks of participating in the industry in Mexico are assessed, including those of metal prices, potential actions by the government, access to land, security, public perception against mining, safety, union relations, exploration, project performance, cyber security, environmental incidents and human resources. Although the report had in mind Fresnillo’s particular situation as one of the largest Mexican mining conglomerates, many parts of the evaluation concern risks that affect all mining enterprises in the country.
  • Some 500 inhabitants of San Antonio, in Baja California Sur, gathered in support of Argonaut Gold’s San Antonio mining project in their locality.

ON EXPLORATION

  • Aztec Minerals Corp.  and Kootenay Silver Inc. informed that interpretation of a recent magnetic and radiometric survey produced multiple porphyry copper targets on the Cervantes property in Sonora. “Cervantes has multiple porphyry cells aligned along a northeast-southwest orientation, manifested as high-level alteration footprints related to intrusive bodies. There are also prominent northwest-southeast trending magnetic anomalies found to be associated with strong alteration, gold-copper mineralization, and intrusive rocks.”   
  • GoGold Resources Inc. disclosed the results from the first two diamond holes on its Los Ricos property in Jalisco. The two diamond drill holes twinned previous RC perforations, replicating the mineralized zones, with 35.5 m @ 1.24 gpt Au, 285 gpt Ag and 27.6 m @ 1.56 gpt Au, 159 gpt Ag. The holes are part of a 10,000 m diamond drill program focused on following the high grade ore shoot down dip below the historical RC drilling.
  • San Marco Resources Inc. plans for 2019 in Sonora include target delineation at Espiritu Santo and 1068 properties, follow-up of underexplored areas at the Chunibas project, extensive participation on lotteries of released ground by the government, evaluation of multiple property acquisitions and ongoing partnership discussions of existing assets.

ON MINING

  • Avino Silver & Gold Mines Ltd. released production results from its Avino property in Durango for 2019’s first quarter. During the period production came from three sources: Avino mine, San Gonzalo mine and historic stockpiles. At Avino, 100.9 K tonnes were milled @ 41 g/t Ag, 0.48 gpt Au, 0.49% Cu, recovering 84% Ag, 71% Au, 87% Cu. At San Gonzalo (which is nearing the end of its mine life) 17.9 K tonnes were milled @ 188 gpt Ag, 0.54 gpt Au, recovering 65% Ag, 61% Au. From historic stockpiles 78.8 K tonnes were milled @ 61 gpt Ag, 0.40 gpt Au, 0.21% Cu, recovering 55%, Ag, 52% Au, 29% Cu. Total production was 1,813 Oz Au, 268.4 K Oz Ag, 1.06 M Lb Cu, or 615 K Oz AgEq.
  • Sierra Metals Inc. reported first quarter 2019 results, including figures from its Mexican mines. The Bolivar mine in Chihuahua processed 263.2 K tonnes (~3,008 tpd, targeting 3,600 tpd for Q2 2019)) grading 0.81% Cu, 19.5 gpt Ag, 0.19 gpt Au, recovering 82.2% Cu, 79.1% Ag, 67.9% Au to produce 3.87 M Lb Cu, 130 K Oz Ag, 1,100 Oz Au (or 5.08 MLb CuEq). At the Cusi mine, also in Chihuahua, 71.3 K tonnes were processed @ 105 gpt Ag, 0.15 gpt Au, 0.3% Pb, 0.3% Zn, recovering 79.5% Ag, 37.5% Au, 75.2% Pb to produce 192 K Oz Ag, 133 Au Oz, 349 K Lb Pb, no Zn.
  • Fresnillo PLC. Filed its annual report 2018. During the year Fresnillo produced 61.8 M Oz Ag, 922 K Oz Au, holding resources of 2.2 billion Oz Ag and 39.1 M Oz Au. At Fresnillo, in Zacatecas, 2.44 M tonnes were milled @ 214 gpt Ag to produce 15.1 M Oz Ag, 42,290 Oz Au, 19,619 tonnes Pb, 31,094 tonnes Zn. At Saucito, in Zacatecas, 2.79 M tonnes were milled @ 257 gpt Ag, 1.25 gpt Au to produce 19.78 M Oz Ag, 86,092 Oz Au, 22,662 tonnes Pb, 29,506 tonnes Zn, while the Pyrites Plant processed 131.8 K tonnes @ 393 gpt Ag, 2.8 gpt Au to produce 977 K Oz Ag, 3,556 Oz Au. At San Julian, in Chihuahua, 1.27 M tonnes were processed from the veins @144.1 gpt Ag, 2.0 gpt Au, to produce 5.43 M Oz Ag, 79,218 Oz Au. 2.22 M tonnes were processed from the disseminated orebody @ 154 gpt Ag, 0.1 gpt Au, 0.4% Pb, 1.4% Zn, to produce 9.2 M Oz Ag, 3,125 Oz Au, 6,101 tonnes Pb, 22,027 tonnes Zn. At Cienega, in Durango, 1.32 M tonnes were milled @ 164 gpt Ag, 1.65 g/t Au to produce 6 M Oz Ag, 66,869 Oz Au, 4,799 tonnes Pb, 5,892 tonnes Zn. At Herradura, in Sonora, 22.15 M tonnes @ 0.76 gpt Au were deposited on the heaps to produce 474,168 Oz Au, 1.52 M Oz Ag, at cash cost $504 per Au Oz (total volume hauled, 124 M tonnes). At Nochebuena, in Sonora, 18.2 M tonnes were deposited on the heaps @ 0.52 gpt Au to produce 167.2 K Oz Au, 52 K Oz Ag, at cash cost $735.4 per Oz Au (total volume hauled, 80.3 M tonnes).  The company had $580.7 M as cash and cash equivalents by the end of the year.

First Majestic Silver Corp. produced 6.3 AgEq Oz during the first quarter of 2019. During the period 831.2 K tonnes of ore were milled @ 150 gpt Ag, 1.26 gpt Au, with recoveries of 83% Ag, 96% Au, to produce 3.33 M Oz Ag, 32,037 Oz Au, 2.66 M Lb Pb, 1.26 M Lb Zn.  The ore had averages and recoveries of 287 gpt Ag, 4.18 gpt Au (93% Ag, 96% Au) at San Dimas, Durango; 121 gpt Ag, 1.87 gpt Au (89% Ag, 95% Au) at Santa Elena, Sonora; 126 gpt Ag (66% Ag) at La Encantada, Coahuila; 187 gpt Ag, 0.58 gpt Au (89% Ag, 93% Au)at San Martin, Jalisco; 54 gpt Ag, 1.8% Pb, 1.6% Zn (75% Ag by flotation, 62% Ag by cyanidation, 69% Pb, 48% Zn) at La Parrilla, Durango; 114 gpt Ag, 2.1% Pb (74% Ag, 0.7 M Lb Pb)at Del Toro, Zacatecas.

  • Gold Resource Corp. reported preliminary production results for the first quarter 2019. The Oaxaca Mining Unit (El Aguila, Arista, Switchback) produced 6,538 Au Oz, 364.6 K Oz Ag, 433 tonnes Cu, 2,153 tonnes Pb, 5,838 tonnes Zn. “The Company maintains its 2019 Oaxaca Mining Unit Annual Outlook of 27,000 gold ounces and 1,700,000 silver ounces, plus or minus 10%”.
  • Hecla Mining Co. announced preliminary production results for the first quarter of 2019. At San Sebastian, in Durango, the mill operated at 494 tpd to produce 0.4 M Oz Ag, 3,530 Oz Au. “A review of sulfide ore continues, including a bulk sample to test the capabilities of the third-party plant and the suitability of long-hole stoping for the ore body, with results expected by the fourth quarter of 2019.”

ON FINANCING

  • Ridgestone Mining Inc. completed its previously announced private placement financing, for gross proceeds of $1.12 M. The company paid 6% ($43.2 K) cash and 309 K compensation warrants. Also, 72.2 K bonus shares were issued to a director of the company, under a loan agreement (Rebeico, Sonora).
  • Sierra Metals Inc. entered into an automatic purchase plan with its designated broker (Cusi and Bolivar, Chihuahua).
  • Sonoro Metals Corp. granted 100 K incentive options to a director of the company. These options vest immediately and are exercisable at a price of $0.18 per share (Cerro Caliche, Sonora).
  • Minaurum Gold Inc. has been named to the TSX Venture Exchange Venture 50tm , the annual ranking of Canada’s top 50 emerging publicly traded companies across five industry sectors. Minaurum also granted 3.35 M common share stock options to directors, officers and consultants. The options are exercisable at a price of $0.45 for a period of 10 years from the issue date. The company also granted consultants 275 k options exercisable at a price of $0.45 for a period of five years. Ten percent vest immediately, and another 15% each semiannually (Alamos, Sonora).   
  • Oroco Resources Corp. closed a non-brokered private placement financing, raising $800 K in gross proceeds. No finder’s fee was paid (Santo Tomas, Sinaloa).
  • Camrova Resources Inc. closed the second tranche of the previously announced private placement, for proceeds of $12 K, bringing the total combined proceeds to $66 K. The third and final tranche of the Private Placement is expected to close in early May (Boleo, Baja California Sur).

ON RESOURCES AND DEVELOPMENT

  • Goldplay Exploration Ltd. reported channel sample results from a new zone at its San Marcial project in Sinaloa. The Nava zone, 500 long by 100 m wide, is extensively altered and hosts low sulphidation quartz veining and stockwork mineralization. Channel samples from the zone returned assays ranging from 1.04 gpt Au to up to 10.0 gpt Au.
  • SilverCrest Metals Inc. announced positive metallurgical results for Las Chispas project, in Sonora. “A total of 445 kg was selected from 51 core holes and nine underground samples to compile 15 different samples, based on geo-metallurgical domains which were combined into three master composites. These composites utilized 210 kilograms of mass representing a variety of grades (low, medium and high) of 500 to 2000 gpt AgEq expected during conceptual operation”. The new metallurgical tests show estimated recoveries of 98.4% to 98.9% Au and 91.4% to 94.8% Ag, using conventional methods comprised of gravity concentration and intensive leaching followed by gravity tails standard leaching.

ON DEALS AND CORPORATE ISSUES

  • Newmont Mining Corp. announced that it has extended the previously announced offers to exchange all outstanding notes issued by Goldcorp Inc. for up to two billion dollars  aggregate principal amount of new notes to be issued by Newmont, as part of the proposed arrangement on which Newmont acquires all outstaning shares of Goldcorp (Peñasquito, Zacatecas).
  • Consolidated Zinc Ltd. presented its notice of annual general meeting for the annual general meeting of shareholders to be held on 23 May 2019 (Plomosas, Chihuahua).
  • Aura Resources Inc. announced the completion of the sale of an 80% interest in its East Taviche project in Oaxaca, to Minaurum Gold Inc.. Minaurum issued 100 K common shares to Aura and paid 39.4 K on closing; additionally, Minaurum is to issue further 100 K shares on receipt of the pertinent drilling permits. The remaining 20% can be acquired by Minaurum paying CDN$1 M.
  • Newmont Goldcorp Corp. announced the successful conclusion of its transaction combining Newmont Mining Corp. and Goldcorp Inc. to form the world’s leading gold business. The company targets six to seven million ounces of steady gold production over a decades-long time horizon (Peñasquito, Zacatecas).

Content like what you have just read can be seen at https://gambusinoprospector.com/ and at LinkedIn’s Mexico Mineral Exploration Group. On the image below, glory hole developed on Inguaran, Michoacan. Picture by Jorge Cirett.

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

Banded quartz texture

By Miguel A Heredia

During the 45th week of the year (November 5th to November 11th, 2018), at least 36 press releases were announced by companies working in Mexico, with thirteen communicating mining activities, seven disclosing deals and corporate issues, seven informing on exploration results, six announcing financing issues, and 3 reporting on advances on their properties. ON MEXICO ISSUES, no relevant news.  ON EXPLORATION, In Sonora, Aloro commenced the road construction and building of drill pads on its Los Venados project, San Marco Resources announced the commencement of a drilling program at its Chunibas project, Sonoro reported drill results from its Cerro Caliche project, and Minaurum discovered two new vein zones at its Alamos Silver project. In Coahuila, Discovery Metals completed a 40 line-km ground magnetometer survey at its Monclova project.  ON MINING, Alio Gold, Americas Silver, Argonaut, Avino, Consolidated Zinc, First Majestic, Fortuna Silver, Hecla, Pan American Silver, Premier Gold, Santacruz Mining, and US Antimony reported production results from their Mexican operations. ON FINANCING, Auxico Gold closed a non-brokered private placement for $315K. GoGold closed the US$12M sale of the Santa Gertrudis royalty with Metalla Royalty and Streaming Ltd. Impact Silver announced a non-brokered private placement to raise up to $1.5M. Telson Mining received $5M from Trafigura Mexico for the second tranche of the loan agreement announced on December 18, 2017. Silver Spruce consolidated its common shares and proposed to complete a non-brokered private placement to raise up to $1.5M. Golden Minerals reported its Q3 2018 financial results. ON RESOURCES AND DEVELOPMENT, Kootenay designed a drilling program aimed to expand resources at its la Cigarra deposit in Chihuahua. Hecla released in-fill drilling results for its San Sebastian mine in Durango. ON DEALS AND CORPORATE ISSUES, Capstone Mining made reductions to its organizational structure (Cozamin mine, Zacatecas). Defiance Silver and ValOro Resources signed a definitive merger agreement (San Acacio project, Zacatecas). Golden Goliath announced that Desarrollos Mineros El Aguila (subsidiary of Fresnillo plc) exercised the option agreement on its Uruachic project in Chihuahua. New Gold (Cerro San Pedro mine, San Luis Potosi) and Prize Mining (Manto Negro project, Coahuila) appointed their Chief Financial Officer respectively. Golden Reign and Marlin Gold completed business combination to form Mako Mining Corp (La Trinidad mine, Sinaloa).

ON MEXICO ISSUES

No relevant news.

ON EXPLORATION

  • Aloro Mining Corp., commenced a 3.6km road construction and building of 12 permitted drill pads at its Los Venados project in Sonora. “The road construction will open up new exposures for sampling in mineralized areas and structure that were previously undercover”.
  • San Marco Resources, commenced a drilling program at its Chunibas project in Sonora where they have a JV agreement with Antofagasta plc. The drilling program will consists of initial 1,500m comprised in six holes with the goal of testing down dip and along strike high-grade Cu-Ag mineralized mantos hosted in volcanic rocks in different stratigraphic levels. The manto-type mineralization has been identified along a corridor of 1.7km long and at least 300m wide.
  • Sonoro Metals Corp., reported results from the initial 13 drill holes from its Cerro Caliche project in Sonora. Significant intersections are: Hole SCR-002 with 27.43m of 0.6 g/t Au and 7 g/t Ag; Hole SCR-003 with 30.48m of 0.5 g/t Au and 8 g/t Ag; Hole SCR-004 with 39.62m of 0.9 g/t Au and 9 g/t Ag, including 6.09m of 2.9 g/t Au and 20 g/t Ag; Hole SCR-005 with 10.67m of 0.7 g/t Au and 21 g/t Ag, and 10.67m of 0.6 g/t Au and 1 g/t Ag; Hole SCR-006 with 10.67m of 1.2 g/t Au and 21 g/t Ag, including 6.1m of 2 g/t Au and 26 g/t Ag; Hole SCR-007 with 22.86m of 0.9 g/t Au and 13 g/t Ag, including 4.57m of 2.2 g/t Au and 20 g/t Ag; and SCR-008 with 36.58m of 0.5 g/t Au and 4 g/t Ag. “The drilling has further confirmed that mineralization in the Los Japoneses zone remains open in all directions, including at depth.”
  • Minaurum Gold Inc., discovered two new vein zones at its Alamos Silver project in Sonora: the San Jose vein, a NNE trend structure hosted in a fault zone which can be traced for at least 3km long, and the Santa Rosa vein, a stringer-quartz veinlets structural zone that runs for at least 300m along strike. The discovery of the new veins was through its ongoing district-scale reconnaissance program. Sampling on the San Jose vein returned grades ranging from anomalous up to 1,995 g/t Ag, 2.5% Cu, and 1.9% Zn, while sampling on the Santa Rosa vein only retuned anomalous values.
  • Discovery Metals Corp., completed a 40 line-km ground magnetic survey at its Monclova project in Coahuila to cover three targets: Real Viejo with 23 lines spaced 50m apart, Corrales with 17 lines spaced 100m apart, and Soledad with 12 lines spaced 50m apart. “Results of the Real Viejo survey highlight a linear magnetic high parallel to the mapped mineralized and altered zone along the southern boundary of the Monclova intrusive complex centered on the Project. This suggests continuity of the alteration and/or mineralization along the contact and provides support for the holes planned to test this zone. Interestingly, similar magnetic high zones occur across the neighboring Corrales target. Both linear magnetic highs as well as linear lows are highlighted by the survey and represent prospective targets on the Project. Results at the northern Soledad grid also highlight similar geometries”.

ON MINING

  • Alio Gold Inc., reported Q3 production results from its San Francisco mine in Sonora. Alio produced 11.6K Oz Au and 3.9K Oz Ag at an AISC of $1,315 per Oz produced.
  • Americas Silver Corporation, produced 323K Oz Ag, 7.5M Lb Pb, and 7.9M Lb Zn during the Q3-2018 from its Cosala operations in Sinaloa and Galena Complex in Idaho.
  • Argonaut Gold Inc., announced Q3 2018 production results from their Mexican operations. At the El Castillo mine in Durango, Argonaut mined 2, 267,000 tonnes of 0.33 g/t Au, to produce 10.3K Oz Au and 4.8K Oz Ag (10.4K GEOs or Gold Eq Oz). At the San Agustin mine in Durango, the company mined 1, 747,000 tonnes of 0.34 g/t Au to produce 15.7K Oz Au and 52.9K Oz Ag (16.5K GEOs). At its La Colorada mine in Sonora, Argonaut mined 1.2M tonnes of 0.33 g/t Au to produce 7K Oz Au and 16.2K Oz Ag (7.3K GEOs).
  • Avino Silver & Gold Mines Ltd., milled 193, 645 tonnes during Q3 2018 to produce 2.2K Oz Au, 342K Oz Ag, and 992K Lb Cu (704.4K Oz Ag Eq) at an AISC of $11.15 per payable Oz Ag Eq.
  • Consolidated Zinc Limited, reported the October 2018 production from its Plomosas mine in Chihuahua. The company milled 237 tonnes of 12.9% Zn and 3.3 % Pb to produce 68.3K Lb Zn and 17.6K Lb Pb.
  • First Majestic Silver Corporation, released Q3 2018 production results from their Mexican operations. The table below shows the quarterly operating and cost parameters at each of the mining operations:

  • Fortuna Silver Mines Ltd., milled 262, 710 tonnes during Q3 2018 at grades of 1.6 g/t Au and 258 g/t Ag to produce 12.4K Oz Au and 1.99M Oz Ag, with metallurgical recoveries of 91% for Au and Ag.
  • Hecla Mining Company, released Q3 production results from its San Sebastian mine in Durango. During Q3 2018, Hecla produced 3.7K Oz Au and 522K Oz Ag.
  • Pan American Silver Corp, reported Q3 2018 production results from each of their mining operations. At La Colorada, Zacatecas the company produced 1.1K Oz Au and 2M Oz Ag. At its Dolores mine in Chihuahua, Pan American Silver produced 33.1K Oz Au and 1M Oz Ag.
  • Premier Gold Mines Limited, announced Q3 2018 production results from its Mercedes mine in Sonora. The company processed 159,608 tonnes of 3.52 g/t Au and 39 g/t Ag with metallurgical recoveries of 96.6% and 43.7% respectively, to produce 17.5K Oz Au and 88.4K Oz Ag at an AISC of $1,059 per Oz produced.
  • Santacruz Silver Mining , released Q3 2018 production results from their Mexican mining operations.  At Veta Grande, Zacatecas, the company processed 42,011 tonnes with 0.26 g/t Au, 77 g/t Ag,  0.8% Pb and 1.94 % Zn to produce  140 Oz Au, 62.2K Oz Ag, 590.8K Lb Pb and 952.4K Lb Zn. At El Rosario, San Luis Potosi, Santacruz processed 15,965 tonnes of 0.26 g/t Au, 0.2% Pb and 1.6% Zn to produce 85 Oz Au, 18.4K Oz Ag, 72.7K Lb Pb, and 467.4 Lb Zn.
  • Torex Gold Resources Inc., processed 1,246,000 tonnes with 2.6 g/t Au during Q3 2018 from its El Limon-Guajes Mine Complex in Guerrero. The quarterly production was 100.4K Oz Au with a metallurgical recovery of 89%.
  • US Antimony Corporation, released its September and October 2018 production results. In September, US Antimony produced 141.2 K Lb Sb and 1,394 tonnes of zeolites, while in October produced 123.5 Lb Sb and 1,065 tonnes of zeolites.

ON FINANCING

  • Auxico Resources Canada Inc., closed a non-brokered private placement for gross proceeds of $315K (Zamora project, Sinaloa).
  • GoGold Resources Inc., closed the US$12M sale of its Santa Gertrudis royalty with Metalla Royalty and Streaming Ltd. GoGold took US$6M of the US$12M sale price in common shares of Metalla, which represent 9.9% of the Metalla shares outstanding.
  • Impact Silver Corp., announced a non-brokered private placement to raise up to $1.5M to explore its Zacualpan project in Mexico State for additional high potential precious metals as well as Au-Cu targets.
  • Telson Mining Corporation, received $5M from Trafigura Mexico S.A. de C.V., for the second tranche of the loan agreement for the construction of its 1,000 tpd Tahuehueto mine in Durango.
  • Silver Spruce Resources Inc., consolidated its common shares and proposed to complete a non-brokered private placement to raise up to $1.5M. The consolidation of its common shares is one new share for five old shares.
  • Golden Minerals Company, reported revenue of approximately $1.9M in Q3 2018 related to the oxide plant lease and costs of approximately $0.7M related to the services Golden provides under the terms of the lease, for a net margin of $1.2M. Other operating income of $3.2 million included $3.0 million from the sale of Golden’s remaining interest in the Celaya project in Guanajuato to The Electrum Group LLC, as well as pro‐rated income from the farm‐out of the Company’s Zacatecas properties to Santacruz Silver. Exploration expenses were $1.1 million in the third quarter, reflecting increased exploration and project evaluation activities at the Santa Maria project in Chihuahua as well as other projects in Mexico.

 

ON RESOURCES AND DEVELOPMENT

  • Kootenay Silver Inc., designed a program of 15,000m of drilling over 62 holes aimed to expand resources along the extensions of its La Cigarra deposit in Chihuahua. The drilling program will be conducted on four target areas where the company believes there is untested potential to increase resources. “The plan would entail primarily exploration step out drilling of known mineralization and some infill drilling of the successful La Borracha program earlier this year”. “The four areas Kootenay plans to target are the La Borracha high grade (the mineralized trend located 1,000 meters northwest from the northern boundary of the Resource), the La Borracha Connection (connecting La Borracha with the San Gregorio area of the Resource), Gap (a very under drilled area between the main San Gregorio and Las Carolinas zones that currently comprise the Resource) and the Carolinas Extension (the strike extension of the Resource to the southeast)”.
  • Hecla Mining Company, released in-fill drilling results for its San Sebastian mine in Durango. The in-fill drilling was conducted in the central portion of the polymetallic zone along the Francine Vein. Additionally, exploration core drilling was also conducted toward shallower oxide mineralization along the West and East Francine vein areas, the recently discovered South Vein, and at the Esperanza Vein target area. At the Francine vein, the in-fill drilling program intersected high grade mineralization. Highlights include 1.37m of 591 g/t Ag, 4.8% Cu, 16% Pb and 13.5% Zn and 2.25m of 227 g/t Ag, 1.8% Cu, 3.5% Pb, and 6% Zn. The drilling also intercepted narrow but high-grade mineralization along the East Francine vein on new zones of vein-hosted oxide mineralization. Significant intersections are 1.46m of 485 g/t Ag and 0.3 g/t Au, and 2.83m of 299 g/t Ag and 2.2 g/t Au. Mineralization in this area is defined over 1,200 feet along strike and 800 feet down-dip and this new zone could represent an important new source of oxide mineralization. At the West Francine vein, the drilling program encountered also narrow intervals of high grade. Highlights include 0.64m of 1,791 g/t Ag and 0.62 g/t Au. Mineralization in this area is open laterally and at depth. Follow-up, offset drilling is in progress. At the Esperanza vein, exploration drilling commenced but results are pending. Reconnaissance RC drilling discovered a new blind vein under soil cover in the Saladillo Valley. This new vein, referred as the South vein, intercepted significant mineralized intervals such as 2.83m of 392 g/t Ag and 2.5 g/t Au, 2.86m of 187 g/t Ag and 0.93 g/t Au, and 2.86m of 174 g/t Ag and 1.24 g/t Au. Drilling for the remainder of the year will continue to focus on expanding resources and evaluate near-surface oxide mineralization at the West Francine Vein, South Vein, and Esperanza Vein areas.

ON DEALS AND CORPORATE ISSUES

  • Capstone Mining Corp., announced management changes and made reduction of its organizational structure to improve financial and operating performance and save approximately $5M per year in corporate general and administrative expenses (Cozamin mine, Zacatecas).
  • Defiance Silver Corp., and ValOro Resources Inc., signed a definitive merger agreement dated on November 5, 2018. The ValOro shareholders will receive 0.71 common shares of Defiance for each share of ValOro held. “Upon completion of the Transaction, the combined company will have approximately 119 million common shares outstanding, of which former shareholders of Defiance will own approximately 87% and the former shareholders of ValOro will own approximately 13%” (San Acacio project, Zacatecas).
  • Golden Goliath Resources Ltd., announced that Desarrollos Mineros El Aguila S.A. de C.V., a wholly subsidiary of Fresnillo plc, exercised the option agreement on its Uruachic project in Chihuahua by making a final payment of US$2.3M. Golden Goliath still holds a royalty on the several optioned properties in the Uruachic mining district.
  • Golden Reign Resources and Marlin Gold Mining Ltd., completed business combination to form Mako Mining Corp. Prior to the closing of the arrangement, the companies completed the amendment to the Gold Purchase Agreement with Sailfish Royalty Corp., and the Marlin reorganization.

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, banded quartz texture in a hot spring epithermal system in Durango, Mexico.  Photo by Miguel A Heredia.

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

117 - copia

By Jorge Cirett

During the 26th week of the year (June 25th to July 1st, 2018), at least 20 press releases were announced by companies working in Mexico. Five companies updated on exploration advances. Three companies announced financing exercises that could accrue over US$14 M, and one company proceeded with a 10:1 consolidation. ON MEXICO ISSUES, Argonaut Gold announced a ruling by the Collegiate Tribunal to reinstate its explosives permit at La Colorada in Sonora. ON EXPLORATION, In Sonora, Aztec Minerals reported drilling results from the Cervantes property; Kootenay described its La Mina property and Aloro Mining obtained the drilling permit for the Los Venados project. ON MINING Argonaut Gold announced a ruling by the Collegiate Tribunal to reinstate its explosives permit at La Colorada in Sonora. Frisco and Goldcorp are to jointly explore the Mazapil valley in Zacatecas. ON FINANCING, Silver Bull, Prize Mining and One World Lithium announced private placements for up to $3 M, $10.75 M and CND$2 M respectively. ON RESOURCES AND DEVELOPMENT, Endeavour Silver released results from infill drilling at Terroneras, Jalisco. Sierra Metals informed of a stockwork zone on the Santa Rosa de Lima structure of its Cusi mine in Chihuahua. ON DEALS AND CORPORATE ISSUES, Geologix finalized its name change to ValOro. Defiance Silver acquired a land package from Mag Silver in Zacatecas. Aloro Mining received title to land contiguous to its Venados project in Sonora. Arian Silver presented its financial report for 2017. Kootenay Silver optioned La Mina property in Sonora to Capstone Mining.

ON MEXICO ISSUES

  • No Relevant News..

ON EXPLORATION

  • Kootenay Silver Inc. reported drilling results by partner Aztec Minerals Corp. on its Cervantes project in Sonora. The final six core holes of 17 on the phase 1 campaign encountered porphyry-type gold-copper mineralization. Highlighted intervals comprise 16.0 m @ 0.25 g/t Au, 0.12% Cu; 100.5 m @ 0.22 g/t Au, 0.12% Cu; 98.5 m @ 0.41 g/t Au, 0.13% Cu (including 33 m @ 0.60 g/t Au, 0.02% Cu); 85.2 m @ 0.48 g/t Au; 0.07% Cu; 90.5 m @ 0.29 g/t Au, 0.06% Cu (including 34.5 m @ 0.55 g/t Au); 116 m @ 0.35 g/t Au, 0.06% Cu (including 62 m @ 0.5 g/t Au). The drilling extended the strike length to more than 800 m at the California and Jasper prospect areas.
  • Kootenay Silver Inc. optioned the La Mina property in Sonora to Capstone Mining Corp. (see below). The property covers “the upper levels of a zoned copper porphyry mineral system exposed over a 2 by 2 Kilometer area”, containing a large leached argillized pyritic zone where surface grab and chip samples averaged about 300 ppm Cu. Another area in the property displays a 100 x 700 m exotica copper zone where sampling averaged 0.49% Cu on 40 rock chip samples.
  • Aloro Mining Corp. informed the permit for road construction and drilling at its Los Venados property in Sonora has been granted by SEMARNAT (Environmental bureau). The permit allows for drilling 12 reverse circulation (RC) holes and the construction of 3,693 m of access roads.
  • Minera Frisco and Goldcorp Inc. entered into an agreement for exploration and mining in the Mazapil valley, Zacatecas. The information was presented by Frisco to the Bolsa Mexicana de Valores (BMV).
  • One World Lithium Inc. conducted a geophysical survey at its Salar del Diablo project in Baja California. The Volterra TEM in-loop sounding survey was carried on the northern third of the Salar del Diablo. The survey totaled 79.7 line kilometers on seven lines nine to twelve Km long and spaced two Km apart, covering 150 square Km. A six square Km part of the salar is highly conductive and with a calculated thickness in excess of 100 m. A probably thinner and less conductive part of the salar covers 24 square Km and is open ended. The company intends to launch a 15 hole 4,000 m drilling campaign in three months time.

ON MINING

  • Argonaut Gold Inc. announced that the Collegiate Tribunal (an arm of the State Supreme court that is tasked with overseeing the Judiciary court) unanimously ruled to lift the suspension of the explosives permit at its La Colorada mine in Sonora. “The ruling directs that the Secretary of National Defense (“SEDENA”) reinstate the explosives permit”. “With this successful appeal, the Company will now have the ability to continue full operations during the balance of the Judiciary legal process”. Ramp up of full operations is expected to be re-established by mid-July.

ON FINANCING

  • Geologix Explorations Inc. announced the name change to ValOro Resources Inc. along with a share consolidation on a 1:10 ratio will take effect as market opens on June 28th (Tepal, Michoacan).
  • Silver Bull Resources Inc. intends to complete a private placement aiming for gross proceeds of US$3 M (Sierra Mojada, Coahuila).
  • Prize Mining Corp. is to make a private placement aiming to raise up to $4 M in gross proceeds. The company is to pay 7.0% of the gross proceeds as cash commission, and a cash work fee of $40 K to the agent. The maximum aggregate gross proceeds of the offering and the non-brokered private placement is $10.75 M. (Manto Negro, Coahuila).
  • One World Lithium Inc. announced that the previous non-brokered private placement announced on May 25, 2018 will be replaced with a non-brokered private placement aiming to raise gross proceeds of up to CND$2 M.

ON RESOURCES AND DEVELOPMENT

  • Endeavour Silver Corp. released results from infill drilling at its Terroneras property in Jalisco. Highlighted true width (TW) intervals from these nine holes comprise: 2.8 m @ 2.0 g/t Au, 54 g/t Ag; 1.3 m @ 1.3 g/t Au, 467 g/t Ag; 2.3 m @ 4.8 g/t Au, 222 g/t Ag; 21.2 m @ 3.2 g/t Au, 618 g/t Ag; 6.0 m @ 2.6 g/t Au, 507 g/t Ag; 1.5 m @ 7.1 g/t Au, 181 g/t Ag; 1.6 m @ 4.2 g/t Au, 120 g/t Ag; 4.4 m @ 4.7 g/t Au, 121 g/t Ag; 4.6 m @ 4.3 g/t Au, 146 g/t Ag; 5.7 m @ 1.3 g/t Au, 164 g/t Au. “The infill drill program is now 60% complete, with 5,990 m drilled out of 10,000 m planned”.
  • Sierra Metals Inc. confirmed the existence of a wide high-grade silver stockwork within the Santa Rosa de Lima vein complex, at its Cusi property in Chihuahua. The stockwork zone measures 100 m in length, 40 m in width and 70 m in height, and is open at depth and width. Mine development so far has resulted in 4,437 tonnes @ 205 g/t Au, 0.07 g/t Au, 0.12% Pb, 0.15% Zn.

ON DEALS AND CORPORATE ISSUES

  • Geologix Explorations Inc. announced the name change to ValOro Resources Inc. along with a share consolidation on a 1:10 ratio will take effect as market opens on June 28th (Tepal, Michoacan).
  • Defiance Gold Corp. completed the acquisition of Mag Silver’s Corp.’s Zacatecas silver district holdings, including its regional exploration database. Defiance is to pay 5 M shares to Mag for as consideration for the sale. The Lagartos project consists of 14 concessions covering 800 hectares (San Acacio, Zacatecas).
  • Aloro Mining Corp. received the title from a 1,675 has concession contiguous to its 1,524 has Los Venados project in Sonora. The claim was staked on July 2017 (Los Venados, Sonora).
  • Arian Silver Corp. presented financial results for 2017. The company owns 12 mining concessions covering 1,500 hectares, some of which encompass the Los Campos, San Celso, Los Africanos and Calicanto projects in Zacatecas. At the end of the period the company had 0.9 M in cash and cash equivalents.
  • Kootenay Silver Inc. entered into an option agreement with Capstone Mining Corp. on La Mina project in Sonora. Capstone can earn-in an initial 60% by making staged payments of US$600 K and spending US$4 M on exploration over 4 years. “Capstone may earn up to a 100% interest in La Mina in stages by completing certain milestones including preparation of a preliminary economic assessment, a pre feasibility study and paying an additional aggregate total of US$8.4 million to Kootenay in stages at each of the various milestones”. The property is subject to an underlying information agreement with a 2.5% royalty, of which up to 2.0% can be bought. “If Capstone Mining earns 100% interest, Kootenay will retain a 1% net smelter return with no buy out option of which 0.5% will be held by the third party after giving effect to the Buydown”.
  • Minera Frisco and Goldcorp Inc. entered into an exploration/mining agreement on the Mazapil Valley. No further details were released.

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, intensely silicified tuff, interpreted as alteration at the paleo water table of an epithermal low sulfidation system in Guanajuato. Picture by Jorge Cirett.

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

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On the picture above, take geologists to a mining museum, and this is what you get. Geologists Ruben Padilla, Barry Quiroz and Miguel Heredia at El Oro Museum in Estado de Mexico. Photo by Jorge Cirett.

By Jorge Cirett

During the 12th week of the year (March 19th to March 25th, 2018), at least 16 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, a gold nugget weighing 850 grams was found in northern Sonora. ON EXPLORATION, In Sonora, Colibri has begun drilling at El Pilar project; while Azure updated work on its Oposura project releasing new high grade drill results. Kootenay has drilled six of seven holes on one target of its La Cigarra project, other targets to follow. ON MINING, three companies, Primero Mining, Excellon and Sierra Metals presented financial and or production results for the fourth quarter and/or full year 2017. Santacruz Silver completed expansion of milling capacity at Veta Grande in Zacatecas.  ON FINANCING, Evrim received $3 M from the exercise of warrants.  ON RESOURCES AND DEVELOPMENT, Americas Silver presented an updated resource on its San Felipe property in Sonora. Almaden provided an update on work being done on the feasibility study at the Ixtaca project in Puebla. ON DEALS AND CORPORATE ISSUES, Alio Gold is to acquire all shares outstanding of Rye Patch, a company with several properties in USA. Bacanora Minerals extended the timetable for re-domiciling by a few days. Sonoro executed an option agreement on a group of properties adjoining its Cerro Caliche property in Sonora.

ON MEXICO ISSUES

  • A gold nugget weighing 850 grams was found in La Cienega area, south of Pitiquito in Sonora. The nugget was discovered using a metal detector by a local gambusino. Northwest Sonora is known by the presence of orogenic gold style deposits, like La Herradura, Nochebuena, La Choya, San Francisco and El Chanate. This type of ore deposits has produced large gold nuggets, of up to 12 kg in weight, with the most famous specimens coming from the El Boludo, La Cienega and Tajitos gold placers.

ON EXPLORATION

  • Colibri Resource Corp. has begun phase 1 of its 2018 drilling program on its Pilar property in Sonora. The program envisages up to 30 holes to be drilled focusing on modelling and extending the known mineralization of the Main Zone to the northwest and southwest along trend. “To date, Colibri has defined an in-house resource of 700 K tonnes @ 1.9 g/t Au”.
  • Kootenay Silver Inc. informed on advances on the current drill program at its La Cigarra property in Chihuahua. Six holes have been completed, and one more is in progress at La Borracha zone, which is the extension of the structure that hosts La Cigarra resource, and drilling has now tested 1,000 m of strike length beyond the resource. Results will be disclosed once all assays have been received. The next drill target is the newly identified Nogalera gold zone, with 8 holes planned on anomalous mineralization over more than 1,000 m of length. Once Nogalera has been drilled, the 104-Vein on the southern part of La Cigarra resource is to be drill tested.
  • Azure Minerals Ltd. updated on work being done at its Oposura project in Sonora. Drilling along strike of an outcrop carrying up to 59.6% Pb+Zn on the West Zone intersected high grade mineralization over an area of 400 x 400 m. Some of the best combined Pb + Zn intercepts returned 2.4 m @ 15.5%. 7.4 m @ 15.9%, 2.8 m @ 19.0%, 3.7 m @ 15.6%, 3.5 m @ 13.2%, 4.6 m @ 15.0%. To date drilling in the West Zone has comprised 64 holes for 4,936 m, with assay results received for 26 drill holes.

ON MINING

  • Primero Mining Corp. reported financial and operating results for 4Q and full year 2017. Primero commenced a strategic review process that resulted in the sale of the Cerro del Gallo project (Guanajuato) in November 2017, and the entering into an arrangement agreement whereby First Majestic will acquire all issued and outstanding common shares of Primero. At San Dimas in Durango, 21,076 Oz Au and 1.32 M Oz Ag were produced during the fourth quarter. For full year 2017, San Dimas produced 111,376 Oz Au, 3.96 M Oz Ag. A strike at San Dimas in early 2017 stopped work for more than two months, significantly impacting yearly production levels.
  • Excellon Resources Inc. reported financial results for the fourth quarter and full year 2017. During the fourth quarter the Platosa mine in Durango produced 16.1 K tonnes, processing 18 K tonnes @ 424 g/t Ag, 3.8% Pb, 5.8% Zn, with recoveries of 90.3% Ag, 80.0% Pb, 82.2% Zn, to produce 206.4 K Oz Ag, 1.17 M Lb Pb, 1.67 M Lb Zn. For the year 57.2 K tonnes were produced, while milling 55.6 K tonnes @ 456 g/t Ag, 4.4% Pb, 5.7% Zn, with recoveries of 90.5% Ag, 82.1% Pb, 80.1% Zn, producing 668 K Oz Ag, 4.09 M Lb Pb, 4.60 M Lb Zn. During 2017 the optimization plan was completed at the Platosa mine, resulting in dry mining conditions that increased production and lowered the costs. Total cash cost per Ag Oz decreased to $10.38, with an AISC of $21.89. All in sustaining cost was $15.84 per Ag Oz for the fourth quarter and $21.89 per Ag Oz for the year.
  • Santacruz Silver Mining Ltd. informed that expansion of milling capacity at its Veta Grande project to 750 tpd (tonnes per day) has been completed. The mill is currently operating at 450 tpd, and full capacity operations are expected to be achieved early in the second quarter 2018. Santacruz now will focus in the consolidation of underground operations.
  • Sierra Metals Inc. reported fourth quarter and year end 2017 financial results, without separating figures for its operations in Mexico. Production at Bolivar is expected to reach 3,000 tpd in Q1 2018 and 3,500 tpd in the second half of 2018. An update in resources is expected in the coming months. At Cusi production is being ramped up to the 650 tpd Mal Paso mill capacity by Q2 2018. The installation of another mill is expected to take production to 1,200 tpd by 2019. At the end of the period the company had 23.9 M in cash and cash equivalents.

ON FINANCING

  • Evrim Resources Corp. received $3.06 M from the exercise of common share purchase warrants, representing 98% of the warrants issue dated December 16, 2015. As a result, Evrim’s current cash position approximates $5.5 M (Cerro Cascaron, Chihuahua).

ON RESOURCES AND DEVELOPMENT

  • Americas Silver Corp. provided an update on the mineral resource estimate at the San Felipe project in Sonora (optioned from Hochschild in early 2017). Of 342 holed drilled by four companies since 1998, 294 are within La Ventana, San Felipe, Transversales and Las Lamas deposits which host the current resource. The new resource contains 4,685 K tonnes @ 5.4% Zn, 2.5% Pb, 61 g/t Ag in the indicated category and 2,008 K tonnes @ 3.6% Zn, 1.4% Pb, 48 g/t Ag in the inferred category. These resources host 560 M Lb Zn, 256 M Lb Pb, 9.1 M Oz Ag; 158 M Lb Zn, 63 M Lb Pb, 3.1 M Oz Ag respectively.
  • Almaden Minerals Ltd. updated on work related to the feasibility study (FS) at the Ixtaca project in Puebla. Work underway includes a resource model update, metallurgy testwork, engineering design, optimization studies, work to move the Rock Creek processing plant to Ixtaca, construction planning, geotechnical site investigation and water management studies. Almaden is also preparing an environmental impact assessment study (Manifiesto de Impacto Ambiental, or MIA) for Ixtaca.

ON DEALS AND CORPORATE ISSUES

  • Alio Gold Inc. and Rye Patch Corp. entered on an arrangement under which Alio Gold (San Francisco, Sonora; Ana Paula, Guerrero) is to acquire all the outstanding shares of Rye Patch (Florida Canyon, Nevada; Lincoln Hill, Nevada). The offer values Rye Patch outstanding equity at C$128 M. The transaction is expected to close on or about May 25, 2018.
  • Bacanora Minerals Ltd. announced that the proposed timetable for the proposed Re-domicile has been changed to 26 March 2018.
  • Sonoro Metals Corp. executed a formal option agreement with a Tucson, Arizona resident to acquire a 100% interest in the 403.5 ha Rosario group of concessions, adjacent to its Cerro Caliche property in Sonora, thus increasing the land holdings of the project to 1,455 ha. The option agreement entails a total consideration to the vendor of US$1.6 M, payable in escalating cash installments over 72 months, and a 2% NSR which can be bought for US$1 M for each percentage point. The initial US$60 K was paid on execution. Total drilling in the two properties before 2008 is 10,118 m in 101 holes.

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

 

 

Autlán amplía negocio de oro y manganeso

http://www.elfinanciero.com.mx/monterrey/autlan-amplia-negocio-de-oro-y-manganeso

Autlán informó que adquirirá la totalidad de las acciones de su socio Metallorum Holding, empresa dedicada a la extracción de metales preciosos, principalmente oro y; que invertirá 25 millones de dólares en los próximos tres años para ampliar la capacidad de producción de mineral de manganeso y ferroaleaciones.

Explicó que la compra de la empresa, donde ya posee una participación minoritaria, se podrá realizar mediante la entrega de acciones de Autlán a los accionistas de Metallorum derivado de la fusión de las empresas y/o a través del pago en efectivo.