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

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By Jorge Cirett                                             

During the 15th week of the year (April 8th to April 14th, 2024), companies working in Mexico posted at least 29 press releases. Two companies released exploration results in their properties, while eight companies released production results for Q1 2024. Seven companies announced financing rounds for a total of C$18.4 M, one granted stock options, one more made a significant draw on its debt facility and one more is listing in the FSE. Three companies released drilling results from their advanced properties, one on new technical reports needed for its properties, and one more on the incoming drilling program. One company announced the appointment of a director. ON MEXICO ISSUES, the Northern Miner wrote that Mexico’s Supreme Court is likely to strike down the mining reforms by the current government. A federal court rejected the legal defense on the cancellation of the Sonora Lithium project concessions. ON EXPLORATION, Minaurum Gold reported metallurgical test results on Alamos; Silver Spruce obtained the drilling permit for the second round of drilling at Diamante. ON MINING, Fortuna Silver, Aura Minerals, Guanajuato Silver Company, Endeavour Silver, Orla Mining, GoGold Resources, Torex gold and Gatos Silver presented production results for Q1 2024. ON FINANCING, Kootenay Silver launched a “best efforts” public offering to raise up to C$5 M. Oroco Resource granted stock options. Silver Spruce announced a private placement to raise C$500 K. Silver Storm raised C$6.1 M. Endeavour Silver drew US$60 M from its US$120 M senior secured debt facility. Vortex Metals is to complete a non-brokered private placement to raise C$1.45 M. Prismo Metals listed its shares in the FSE. Tocvan Ventures is to raise C$2.25 M. Regency Silver upsized its non-brokered private placement to C$993.7 K. Silver Viper raised C$2.1 M on the closing of the first tranche of its financing round. ON RESOURCES AND DEVELOPMENT, Pan American Silver presented drilling results from La Colorada Skarn infill drilling in Zacatecas. Prime Mining released drilling results from Los Reyes, in Sinaloa. Defiance Silver is to prepare new technical reports for Tepal and San Acacio projects, in Jalisco and Zacatecas respectively. Goldgroup presented the first update on its operations and drilling results at Cerro Prieto, in Sonora. Centenario Gold is preparing to drill Eden, in Sinaloa. ON DEALS AND CORPORATE ISSUES, Vizsla Silver announced an appointment to the board. ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUES

  • Henry Lazenby on the Northern Miner wrote that Mexico’s Supreme Court could strike down the president’s mining reforms next week. Here is the link to read on the nightmarish situation in Mexico under the current government for the mining industry: https://www.northernminer.com/news/mexicos-supreme-court-could-strike-down-presidents-mining-reforms-next-week/1003866150/
  • The federal court rejected an amparo filed by Bacanora Lithium owned by the Chinese company Ganfeng Lithium to reverse the cancellation of its mining concessions in Sonora by the Ministry of Economy’s (SE) General Mining Directorate in September 2023.

ON EXPLORATION

  • Minaurum Gold Inc. reported preliminary metallurgical testing results from composite core samples taken at the Promontorio and Europa targets at its Alamos silver project in Sonora. “Six separate composites were prepared including 3 from core samples at the Europa vein zone and 3 from core samples at the Promontorio vein zone. For each vein zone, the 3 composites were comprised of 1/4 cores corresponding from sample intervals with silver assays in ranges 150-250 g/t silver (low grade), 250-450 g/t silver (medium grade), and >450 g/t silver (high grade)”. Reported Au recoveries ranged from 46% to 96.5%, averaging 77.4%; Ag recoveries ranged between 68.2% to 94.3%, averaging 85.4%; Pb recoveries ranged from 21.3% to 82.2%, averaging 63.7%; Cu recoveries ranged between 43.5% and 81.87%, averaging 61.2%. Samples were processed at the Tecnológico de Metalurgia in Hermosillo and the Servicio Geológico Mexicano (SGM) lab in Chihuahua.
  • Silver Spruce Resources Inc. along with partner Colibri Resource Corp. announced the approval of its Informe Preventivo by SEMARNAT (Environmental authority) for the second drill program at the Diamante project in Sonora. “Colibri will manage the planned 1,000 metre diamond drilling program from a select group of the permitted drill targets”.

ON MINING

  • Fortuna Silver Mines Inc. reported production for the first quarter of 2024, including figures from its Mexican operations. At San Jose, in Oaxaca, 181.1 K tonnes were milled at an average rate of 2,182 tpd, grading 147 gpt Ag, 0.90 gpt Au, recovering 88.73% Ag, 86.76% Au, to produce 4,533 Oz Au, 759.1 K Oz Ag during the period. “The San Jose Mine has less operational flexibility in 2024 compared to 2023 due to the reduced and more dispersed Mineral Reserves associated with the Trinidad deposit. Production areas contain lower head grades and a higher presence of ferrous oxides in the upper levels, which impacted recoveries by approximately 2 percent in the quarter. The operation is experiencing cost pressures, mainly driven by a continued appreciation of the Mexican peso. The Company conducts regular assessments and trade-offs between maintaining operations and a care and maintenance option”.
  • Aura Minerals Inc. announced preliminary production results from its mines, including figures from Aranzazu, in Zacatecas. During the period Aranzazu produced 25,001 Oz AuEq. “Production was 5% lower compared to Q4 2023 and 5% above Q1 2023 at constant metal prices, due to mine sequencing…”
  • Guanajuato Silver Company Ltd. announced selected financial information and consolidated production results for 2023. During the year the company mined 600.3 K tonnes, milling 593.8 K tonnes to produce 1.76 M Oz Ag, 16,967 Oz Au, 3.55 M Lb Pb, 3.87 M Lb Zn, at cash cost $18.22 per Oz AgEq and an AISC of $22.91. Guanajuato Silver produced 74% more Ag, 52% more Au, 164% more Pb and 100% more Zn than in 2022. At the end of the period the company had cash and cash equivalents of $1.96 M and negative working capital of $18.44 M (El Cubo, Valenciana Complex, San Ignacio in Guanajuato; Topia in Durango).
  • Endeavour Silver Corp. reported Q1 2024 production of 1.46 M Oz Ag, 10,133 Oz Au, or 2.3 M Oz AgEq. At Guanaceví, in Durango, 115 K tonnes were processed at a rate of 1,263 tpd, grading 402 gpt Ag, 1.25 gpt Au, recovering 89.9% Ag, 89.2% Au, to produce 1.33 M Oz Ag, 4,124 Oz Au. At Bolañitos, in Guanajuato, 106.8 K tonnes were processed at a rate of 1,174 tpd, grading 42 gpt Ag, 1.94 gpt Au, recovering 86.2% Ag, 90.2% Au, to produce 124.3 K Oz Ag, 6,010 Oz Au.
  • Orla Mining Ltd. provided an interim operational update for Q1 2024. During the period 1.94 M tonnes of ore were mined and 872.6 K tonnes of waste moved at its Camino Rojo Oxide mine in Zacatecas, with a strip ratio of 0.45, stacking 1.8 M tonnes at an average rate of 19,597 tpd, grading 0.82 gpt Au, to produce 33,223 Oz Au. At the end of the period Orla had a $118.1 M cash position, with a total debt of $88.4 M, resulting in a net cash position of $29.7 M.
  • GoGold Resources Inc. reported production for Q1 2024 of 138.7 K Oz Ag, 2,184 Oz Au, 93 tonnes Cu, 92 tonnes Zn, or 375.7 K Oz AgEq at its Parral tailings operations. “With the SART Zinc circuit commissioning completed, this marks the first quarter where Parral produced a saleable zinc product.”
  • Torex Gold Resources Inc. reported Q1 2024 gold production of 115,494 Oz at its El Limón Guajes surface and underground operations in Guerrero. Average gold recovery at the processing plant was 90.7%, the highest to date. Throughput averaged 13,118 tpd.
  • Gatos Silver Inc. announced production results for Q1 2024 at its Cerro Los Gatos mine in Chihuahua. During the period 292.1 K tonnes were processed at a rate of 3,210 tpd, grading 284 gpt Ag, 3.99% Zn, 1.77% Pb, 0.28 gpt Au, recovering 88.8% Ag, 61.4% Zn, 89.2% Pb, 52% Au, to produce 2.37 M Oz Ag, 15.8 M Lb Zn, 10.1 M Lb Pb, 1,390 Oz Au (or 3.7 M Oz AgEq) in lead and zinc concentrates.

ON FINANCING

  • Kootenay Silver Inc. entered into an agreement with Red Cloud Securities Inc. to act as lead agent and sole bookrunner in connection with a “best efforts” public offering for gross proceeds of up to C$5 M (Columba, Chihuahua).
  • Oroco Resource Corp. granted 6.23 M stock options to 33 directors, officers, employees and consultants at an exercise price of $0.75 per share (Santo Tomás, Sinaloa).
  • Silver Spruce Resources Inc. announced a private placement to gather gross proceeds of up to C$500 K (Pino de Plata, Chihuahua).
  • Silver Storm Mining Ltd. closed the second and final tranche of its oversubscribed non-brokered private placement offering for gross proceeds of C$4.63 M, including C$3 M investment from current significant shareholder Eric Sprott.  In aggregate the total gross proceeds in the two tranches added to C$6.1 M (La Parrila, Durango).
  • Endeavour Silver Corp. announced the first drawdown of $60 M of the $120 M senior secured debt facility for the development of the Terronera mine in Jalisco. The key terms of the contracts include forward sales amounting to 68,000 Oz Au that have been executed at $2,325 per Oz, representing 55% of planned gold production on the first three years of operations, no silver hedge requirements and forward purchases of US$45 M equivalent Mexican peso over the remaining construction period at $16.56 per US dollar.
  • Vortex Metals Inc. intends to complete a non-brokered private placement for total gross proceeds of C$1.45 M (Riqueza Marina, Oaxaca).
  • Prismo Metals Inc. announced the listing of its shares on the Frankfurt Stock Exchange (FSE). Prismo Metals shares are also cross listed on the Canadian Securities Exchange and on the OTCQB in the United States (Los Pavitos, Sonora).
  • Tocvan Ventures Corp. arranged a non-brokered private placement with a lead order from an institutional investor for C$1.5 M. The company will complete a concurrent private placement for up to C$750 K to other eligible investors for aggregate gross proceeds of C$2.25 M (Pilar, Sonora).
  • Regency Silver Corp. announced that it has closed a further C$215.2 K of a previously announced non-brokered private placement of $C800 K, upsizing it to a total of C$993.7 K (Dios Padre, Sonora).
  • Silver Viper Minerals Corp. announced the closing of the first tranche of its non-brokered private placement financing pursuant to the Listed Issuer Financing Exemption (LIFE) previously announced. Under the first tranche the company raised C$2.11 M in gross proceeds (La Virginia, Sonora).

ON RESOURCES AND DEVELOPMENT

  • Pan American Silver Corp. released results from the ongoing infill and geotechnical drill program at its La Colorada Skarn project, in Zacatecas. The results from eight drill holes (8,101 m) returned some of the highest-grade intercepts in the project. Highlighted core length intervals comprise 26.85 m @ 127 gpt Ag, 7.2% Pb, 11.1% Zn; 77.85 m @ 568 gpt Ag, 12.4% Pb, 9.6% Zn; 22.50 m @ 1,435 gpt Ag, 31.9% Pb, 20.5% Zn; 372.10 m @ 77 gpt Ag, 3.9% Pb, 5.8% Zn (including 83.85 m @ 172 gpt Ag, 8.5% Pb, 10.5% Zn); 60.00 m @ 80 gpt Ag, 4.0% Pb, 7.0% Zn (including 29.00 m @ 136 gpt Ag, 7.5% Pb, 12.8% Zn); 91.20 m @ 31 gpt Ag, 2.6% Pb, 5.0% Zn; 87.25 m @ 32 gpt Ag, 1.4% Pb, 3.9% Zn; 134.55 m @ 29 gpt Ag, 0.1% Pb, 6.6% Zn; 23.15 m @ 57 gpt Ag, 3.3% Pb, 5.6% Zn.
  • Prime Mining Corp. reported expansion drilling results from its Los Reyes project in Sinaloa. Highlighted true width intervals from 15 holes at the Tahonitas area comprise 7.7 m @ 5.83 gpt Au, 143 gpt Ag (including 1.8 m @ 24.31 gpt Au, 555 gpt Ag; 16.9 m @ 1.21 gpt Au, 60 gpt Ag (including 4.5 m @ 2.41 gpt Au, 122 gpt Ag); 0.8 m @ 7.66 gpt Au, 1,260 gpt Ag. These intercepts may support pit expansion to the southeast near surface, and show that the Tahonitas structure mineralization continues for 350 m along strike from the southeast pit crest and enhances the potential to continue discovering high-grade ore shoots within the southeast strike extension and potential high-margin underground feed. Five drill rigs are currently active, and the company is targeting 40,000 m of drilling in 2024.
  • Defiance Silver Corp. announced that the amendment needed on the Tepal project technical report cannot be done, as some of the sections requiring amendments were prepared by persons who are no longer qualified persons. Defiance will be working to prepare a new technical report to replace the current Tepal report. “As for its San Acacio project, work on the preparation of the new technical report is progressing well but has been delayed, notably, due to the site visit availability. The Company now expects to file this new technical report by the mid-May 2024” (Tepal, Jalisco; San Acacio, Zacatecas).
  • Goldgroup Mining Inc. updated on its operations at its Cerro Prieto open pit, heap leach mine in Sonora. Goldgroup commenced mining operations at Cerro Prieto in 2013 with a resource of 8.22 M tonnes @ 0.81 gpt Au, 17.2 gpt Ag, 0.21% Pb, 0.54% Zn, which were mined by mid 2023. Additional mineralization has been mined during subsequent exploration, but not yet included in a published resource calculation. To date Cerro Prieto has produced 117,033 Oz Au, and production continues at a rate of 1,000 to 1,200 Oz Au per month. Mining was focused over a strike length of 1.6 Km in several pits, on a near vertical shear zone up to 65 m wide. Highlighted core length intercepts in 2023 include 19.70 m @ 1.03 gpt Au; 5.5 m @ 0.75 gpt Au; 20.98 m @ 1.02 gpt Au; 13.20 m @ 2.05 gpt Au; 4.50 m @ 1.16 gpt Au; 1.55 m @ 4.78 gpt Au; 24.96 m @ 0.69 gpt Au; 7.70 m @ 1.35 gpt Au; 17.97 m @ 1.13 gpt Au; 11.80 m @ 0.61 gpt Au; 4.25 m @ 1.07 gpt Au; 7.78 m @ 0.98 gpt Au; 11.67 m @ 1.16 gpt Au; 13.70 m @ 1.15 gpt Au; 13.70 m @ 1.15 gpt Au; 13.20 m @ 1.20 gpt Au; 43.89 m @ 0.43 gpt Au; 9.05 m @ 0.093 gpt Au. The company recently brought back into full service its 2,500 tpd crushing circuit, with an improvement in recoveries to 60% expected. Funding is being sought for a second full crushing circuit to double its current gold production.
  • Centenario Gold Corp. announced the next phase of exploration on the Eden property in Sinaloa. The geological team lead by Alain Charest and Hermilo Mendoza outlined several new targets to drill-test across the Eden property, including the northern extension, the upper and deeper portions of the Buenavista epithermal vein system and other sub-parallel mineralized structures, especially the La Proveedora prospect 1.5 Km east of Buenavista. “The upper 100 meter portion of the Buenavista structure extends directly down dip from where the high grade Au and Ag surface sample as high as 239.9 g/t Au and 1390 g/t Ag were obtained”. Quartz textures and alteration minerals at 250 m depth are interpreted as part of the upper level of the epithermal systema, enhancing the probability of further mineralized zones at depth.

ON DEALS AND CORPORATE ISSUES

  • Vizsla Silver Corp. announced the appointment of Ms. Suki Gill as an independent director of the company effective immediately (Panuco, Sinaloa).  

ON SOCIAL RESPONSIBILITY

  • No Relevant News.

On the image below: Quartz-barite-specularite vein on a project in the Sonoran Desert. Picture by Jorge Cirett.

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

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By Jorge Cirett                                             

During the 13th week of the year (March 25th to March 31st, 2024), companies working in Mexico posted at least 21 press releases. Five companies released results for the last quarter/full-year 2023. Two companies announced financing rounds for a total of C$9.8 M, while one more filed a short form base shelf prospectus to raise up to C$40 M. Two companies released updated reserve and resource estimates for its operations. Three companies announced appointments to their boards, one is informing on a royalty spinout, one company announced the agreement to acquire another company with two operating mines in Mexico and one more announced the acquisition of a significant property in Sinaloa. A company with three precious metal mines in Mexico is commissioning a mint in Nevada. ON MEXICO ISSUES, no relevant news. ON EXPLORATION, no relevant news. ON MINING, Prime Mining, Alamos Gold, Discovery Silver, Fortuna Silver, Gold Royalty Corp and Americas Gold and Silver presented results for Q4 and full year 2023. ON FINANCING, Americas Gold and Silver raised C$7.8 M, and Capitan Silver increased its offering to C$2 M. Kootenay Silver filed a short form base shelf prospectus to make offering for up to C$40 M in 25 months. ON RESOURCES AND DEVELOPMENT, Mag Silver and Torex Gold released new reserve and resource estimates for Juanicipio (in Zacatecas) and the Morelos Complex (in Guerrero) respectively. ON DEALS AND CORPORATE ISSUES, Vizsla Silver is arranging the distribution of Vizsla Silver Royalties shares to its shareholders. Orex Minerals, GoGold Resources and Fresnillo plc announced resignations and appointments to their boards. Alamos Gold is acquiring Argonaut Gold. Vizsla Silver is acquiring the large La Garra-San Dimas project in Sinaloa. First Majestic Silver commissioned a mint in Nevada. ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUES

  • No Relevant News.

ON EXPLORATION

  • No Relevant News.

ON MINING

  • Prime Mining Corp. reported its operating and financial results for 2023. A federal judge has granted its applications for Federal protection (Amparos) to conduct its activities under the previous (1994) mining law. By the end of 2023 the company held $33.8 M in cash. Prime is to drill 40,000 m in 2024, focusing in resource development and discovery potential. Five drills are currently active at the site (Los Reyes, Sinaloa).
  • Alamos Gold Inc. filed its annual information form and 2023 annual report, including its audited financial statements for 2023, with the SEC on EDGAR as well as on SEDAR+ (Mulatos, Sonora).
  • Discovery Silver Corp. announced financial results for 2023, and updated on work at its Cordero project in Chihuahua since Q4 2023. The release highlighted the feasibility study (FS) results on Cordero, which include a 19-year mine life producing 33 M Oz AgEq in concentrate per year over the life of mine (LOM), at an AISC of US$13.50 per Oz AgEq over the LOM, with a reserve base of 302 M Oz Ag, 840 K Oz Au, 3.0 B Lb Pb, 5.2 B Lb Zn, not including 240 M tonnes of resources outside the feasibility pit. The company had cash and cash equivalents of $58.9 M by the end of 2023.
  • Fortuna Silver Mines Inc. filed its fiscal 2023 annual report on Form 40-F with the U.S. Securities and Exchange Commission (San José, Oaxaca).
  • Gold Royalty Corp. filed its operating and financial results for Q4 and full year 2023. During the year the company received $3.05 M in revenue, with an adjusted net earning loss of $3.9 M while receiving 2,703 Oz AuEq. For 2024 Gold Royalty, which owns 340 royalties, including five producing projects, expects to receive between 5 K and 5.6 K Oz AuEq, roughly US$10 to US$11.2 M (Royalty on Cozamin, Zacatecas).
  • Americas Gold and Silver Corp. reported consolidated financial and operational results for 2023, including figures for its Mexican operations. At Cosalá, in Sinaloa, 1.1 M Oz Ag, 11.5 M Lb Pb and 34.1 M Lb Zn were produced at cash cost $8.47 per Oz Ag. “The Company is in the final stages of negotiation with a global metal trader to provide concentrate prepayment financing for the capital requirements at its 100%-owned El Cajón and Zone 120 silver-copper project (“EC120 Project”) at the Cosalá Operations.  The Company expects to close this financing in Q2-2024 with the goal to be producing higher-grade silver-copper concentrates by the end of 2024”.

ON FINANCING

  • Americas Gold and Silver Corp. closed its offering for total aggregate gross proceeds of C$7.8 M (Cosalá, Sinaloa).
  • Capitan Silver Corp. increased its non-brokered private placement from C$1.5 M to C$2 M (Cruz de Plata, Durango).
  • Kootenay Silver Inc. obtained receipt for a final short form base shelf prospectus with the securities regulators in each province and territory of Canada. The filing allows Kootenay to make offerings for up to a maximum of C$40 M during the 25-month period over which the base shelf prospectus is effective (Columba, Chihuahua).

ON RESOURCES AND DEVELOPMENT

  • Mag Silver Corp. filed on SEDAR the mineral resource and mineral reserves NI-43-101 compliant technical report for the Juanicipio mine in Zacatecas (44% MAG, 56% Fresnillo plc, mine operator). Juanicipio holds 17 M tonnes @1.86 gpt Au, 310 gpt Ag, 2.89% Pb, 5.32% Zn, containing 1.02 M Oz Au, 169.2 M Oz Ag, 492 K tonnes Pb, 904 K tonnes Zn in measured and indicated resources, and 14 M tonnes @ 1.06 gpt Au, 236 gpt Ag, 2.41% Pb, 6.12% Zn, containing 480 K Oz Au, 106.7 M Oz Ag, 339 K tonnes Pb, 860 K tonnes Zn in inferred resources. The Juanicipio plant achieved the designed 4,000 tpd throughput on September 2023.
  • Torex Gold Resources Inc. reported year-end 2023 mineral reserves and resources for the Morelos Complex in Guerrero. The complex includes the El Limón Guajes (ELG) mine open pits and underground, advanced development phase Media Luna deposit, pre-development phase EPO deposit and surface stockpiles. As can be seen on the table below, the total resources (measured and indicated resources plus inferred resources) add up to almost 10 M Oz AuEq. “Since releasing the March 2022 Technical Report, we have increased our Measured and Indicated resource 1 base by 1,979 koz AuEq (prior to mined depletion) over the last two years and strengthened the production profile by increasing our Proven and Probable reserves by 719 koz AuEq (prior to processed depletion) over the same period.”

ON DEALS AND CORPORATE ISSUES

  • Vizsla Silver Corp. announced an arrangement agreement with Vizsla Silver Royalties Corp. under which Vizsla Silver shareholders will vote on a special meeting where the distribution of common shares and warrants from Vizsla Royalties are to be arranged on a 1/3 basis. Vizsla Silver also entered into an equity distribution agreement with Canaccord Genuity Corp. in respect of an at-the-market equity program, which allows the company to issue up to C$50 M of Vizsla Silver shares from treasury to the public. “The ATM Program is intended to provide the Company with additional financing flexibility should it be required in the future. The volume and timing of distributions under the ATM Program, if any, will be determined in the Company’s sole discretion” (Panuco, Sinaloa).
  • Orex Minerals Inc. announced the resignation of David Gunning from the board, and the appointment of Adam Cegielski as independent chair of the company’s board of directors (Valenciana, Zacatecas).
  • GoGold Resources Inc. announced the re-election of members of the board on the annual and special meeting of shareholders held on March 26, 2024 (Los Ricos South, Jalisco).
  • Alamos Gold Inc. entered into a definitive agreement on which Alamos is to acquire all of the issued and outstanding shares of Argonaut Gold Inc. By this agreement Alamos is acquiring the Magino mine, located adjacent to its Island Gold mine in Ontario. Concurrently, Argonaut’s assets in USA and Mexico will be spun out to its existing shareholders as a newly created junior gold producer (“SpinCo”), which will own the Florida Canyon mine in USA, and the El Castillo Complex in Durango, La Colorada in Sonora, and Cerro del Gallo in Guanajuato. “Upon SpinCo going public, Alamos has agreed to subscribe for a further US$10 million to obtain a 19.9% interest in SpinCo”.
  • Vizsla Silver Corp. entered into an agreement to acquire the past-producing La Garra-Metates district in Sinaloa. The 16,962 Ha land package is between the San Dimas and Vizsla’s Panuco district, and exhibits low sufidation epithermal vein systems that have returned high grades over kilometers of strike. Vizsla entered into a share purchase agreement in March 27, 2024, with Exploradora Minera La Hacienda SA de CV and Manuel de Jesus Hernandez Tovar, with a cash payment of non-binding LOI of US$100 K, 258 K shares on signing; US$150 K cash and 476.2 K shares at three months; US$275 K cash, 535.7 K shares at six months; US$225 K, 595.2 K shares at nine months; US$350 K cash, 714.3 K shares at 12 months; US$300 K cash, 833.3 K shares at 15 months; US$375 K cash, 962.4 K shares at 18 months and US$1.3 M in cash, 1.19 M shares at 24 months. Vizsla is to pay back taxes on the concessions and the sellers will retain a 1% royalty that can be bought back for US$750 K at any time. “The finder’s fees is 2% NSR of the project payable to an arm’s length Mexican Company”.
  • Fresnillo plc. announced that Ms Bárbara Garza Lagüera and Mr Juan Bordes intend to stand down from the board at the next annual general meeting in May of 2024. “The Board has, therefore, invited Mr Charlie Jacobs to continue on the Board as a Non-Independent NonExecutive Director” (Fresnillo, Zacatecas).
  • First Majestic Silver Corp. completed the commissioning and commencement of bullion sales from its minting facility, First Mint LLC., located in Nevada. “The inaugural production run of bullion bars will be commemorated and sold as collectibles, complete with certificates of authenticity and exclusive packaging. These limited edition “First Strike” products will include 1,000 one-kilogram bars, 2,500 ten-ounce bars, and 5,000 five-ounce bars” (San Dimas, Durango).

ON SOCIAL RESPONSIBILITY

  • No Relevant News.

On the image below: Specularite-quartz matrix breccia in a project in the Sonoran Desert. Picture by Jorge Cirett.

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

/ Gambusino Prospector / Leave a comment

By Jorge Cirett                                             

During the 11th week of the year (March 11th to March 17th, 2024), companies working in Mexico posted at least 26 press releases. Three companies reported on exploration at its properties while three more released results for the last quarter/full-year. Four companies announced financing rounds for a total of C$7.8 M, one is delisting from one Stock Exchange and listing in another one, another is extending its warrants expiry date and one more is granting stock options. One company informed on work at its advanced property. One company obtained a hard-sought community authorization for exploration activities, while one other is stopping activities in Mexico. A company announced an appointment to the board and one more the optioning of a property. One company is to process third-party material at its mill, one is cancelling an option and its related financing round and one more is updating on its legal action against the Mexican government. ON MEXICO ISSUES, a couple of judicial resolutions set the application of the new mining law on hold. The anti-mining stance by the federal government is bearing fruit, pushing mining investment out of the country. ON EXPLORATION, in Sonora, Colibri Resource updated on work at its EP project. In Chihuahua, Kootenay Silver is to drill at Columba. In Durango, Silver Dollar is re-evaluating the Nora project. ON FINANCING, three companies informed on the opening or closing of financing rounds: Regency Silver (C$250 K), Reyna Silver (C$3.2 M), Defiance Silver (C$2.6 M) Guanajuato Silver granted options to directors, management and consultants. Pantera Silver is to extend the expiry date of warrants. Almaden Minerals is to change its listing stock exchange. ON RESOURCES AND DEVELOPMENT, Atacama Copper started drilling at Cristina, in Chihuahua, focusing on high-grade resources. ON DEALS AND CORPORATE ISSUES, USAntimony is closing operations in Mexico. Vortex Metal obtained community exploration approbation. Sonoro Gold announced an appointment to the board. Riverside Resources and Fortuna Silver signed an option agreement on the Cecilia project, in Sonora.  CMC Metals dropped the option on the Gavilanes project and the concurrent financing round on lack of exploration permit. Guanajuato Silver Company signed a new third-party processing agreement. Almaden Minerals and Almadex Minerals updated on its request for consultation under the CPTPP.  ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUES

  • According to the newspaper La Jornada a judge upheld a partial suspension on the reforms to the mining law, specifically on the article that disposes all mining concession applications not yet titled. First Majestic Silver promoted the appeal on grounds of unconstitutionality.
  • The Poder Judicial Federal suspended multiple parts of the reform to the Mining Law of last May 2023, as these are likely unconstitutional. By Mid-April the Supreme Court has to discuss if the reforms are invalidated because of violations to the legislative process, although the project on the Mining Law still has to be included on the minute. Some points addressed in the reform include the reduction from 50 to 30 years of duration of the concession, auctioning of mining concessions, community consultation and retribution and water use limitations among others.
  • The Mexican government mining policies are bearing fruit. The Mining Law changes of last year (likely to be soon rejected by the Supreme Court), the reluctance by the environmental agency (SEMARNAT) to reauthorize mining permits, the lack of permits for open pit mining, the unwillingness to end illegal blockades and the general anti-mining stance of the current federal government are working as expected, deterring mining investment and pushing the more disadvantaged players, junior foreign companies, out of the country. Just this week USAntimony is closing operations in Mexico, CMC Metals is bailing out of a deal to option a property because of SEMARNAT’s failure to extend an exploration permit and Almaden Minerals informed on the international proceedings regarding its Ixtaca project in Puebla. Those companies are adding to the likes of Fortune Silver, Argonaut Gold, Riverside Resources and Golden Minerals, among others, that have made public during this quarter their reassessment of continuing operations in Mexico or have current arbitration cases, like Silver Bull Resources on its Sierra Mojada project in Coahuila. How much this scenery is to change depends on when/if the Mining Law changes are repealed and the open pit mining ban scraped.

ON EXPLORATION

  • Silver Dollar Resources Inc. commenced its re-evaluation of the Nora property in Durango during last February, with the collection of 72 surface samples on the East, West and South anomalies, as well as from the main Candy structure. Rock samples on the Candy structure attempt to replicate the results from the previous operator, and will be reported when received.
  • Colibri Resource Corp. updated on exploration activities at its EP Gold project in Sonora. Work includes an airborne magnetic survey covering 1,385 ha at a height of 35 m and a 50 m spacing between flight lines. Similar equipment and survey parameters with previous surveys allowed for the combination of the datasets. Geological mapping completed on selected areas with 64 rock samples collected as well as 23 rocks for thin section petrography. Interpretation of geological, geochemical and geophysical surveys highlighted the importance of north-northeast trending structures, and the recognition of easterly trending ones. Colibri has identified 14 target areas, prioritizing four of these for drilling.
  • Kootenay Silver Inc. announced the initiation of the Q1 diamond drill program at Columba, in Chihuahua. The program envisages 15 to 17 holes for 5,000 m designed to expand upon previous intercepts along the D-Vein target. “The current drilling program is designed to extend the D-Vein in preparation of a follow up program of likely 15,000 meters, aimed to delineate a maiden resource expected in late 2024 which is dependent on additional drilling beyond the 5000 meter program and the financing it requires.”

ON MINING

  • Endeavour Silver Corp. announced financial and operating results for Q4 and full-year 2023. During the year the company produced 5.7 M Oz Ag, 37,858 Oz Au, or 8.7 M Oz AgEq, for a total revenue of $205 M, $37 M in operating cash flow before working capital changes and net income of $6.1 M. Consolidated cash cost net of by-product credits was $13.49 per Oz Ag, and an AISC of $22.93 per Oz Ag, impacted by higher costs. During the year Bolañitos in Guanajuato processed 441 K tonnes to produce 537.5 K Oz Ag, while Guanaceví in Durango processed 433.4 K tonnes to produce 5.09 M Oz Ag. Construction of the Terronera mine in Jalisco continues on schedule. Cash position of $35.3 M and $42.5 M in working capital.
  • SilverCrest Metals Inc. released financial results for Q4 and year 2023. During the year Las Chispas mine in Sonora mined 300.9 K tonnes, processed 431.4 K tonnes at a rate of 877 tpd, with ore averaging 4.39 gpt Au, 423 gpt Ag (or 771 gpt AgEq), recovering 98.1% Au, 96.5% Ag, to produce 59,700 Oz Au, 5.65 M Oz Ag (or 10.4 M Oz AgEq) at cash cost $7.73 per Oz AgEq. In 2023 the company completed 13.2 km of horizontal and vertical underground development. During the year SilverCrest generated $116.7 M in net earnings and free cash flow was $121.1 M, holding cash and cash equivalents of $86 M by the end of the year.
  • Gold Resource Corp. announced full-year operational results from its Don David Gold Mine in Oaxaca. During Q4 2023 the mine milled 111.2 K tonnes @ 1.44 gpt Au, 85 gpt Ag, 0.39% Cu, 1.39% Pb, 2.95% Zn to produce 4,077 Oz Au, 282.5 K Oz Ag, 341 Cu tonnes, 1,072 Pb tonnes, 2,884 Zn tonnes in the quarter, adding up to 18,534 Oz Au, 1.04 M Oz Ag (31,085 Oz AuEq). For 2024 the guidance is to produce 13,000 to 15,000 Oz Au, 1.25 to 1.4 M Oz Ag, (29,500 to 31,500 Oz AuEq) at cash cost $1,450 to $1,650 per Oz AuEq. Negotiations during Q4 2023 reduced royalties from 5% to 3% on the La Tehuana, El Aguila, and Mina El Aire mining concessions.

ON FINANCING

  • Regency Silver Corp. closed further $253 K of a previously announced non-brokered placement of $800 K. The company also granted stock options to acquire 1.7 M of common shares to directors, officers, employees and consultants (Dios Padre, Sonora).
  • Pantera Silvera Corp. applied to extend the expiry date of 11.8 M share purchase warrants to March 11, 2025 (Nuevo Taxco, Guerrero).
  • Reyna Silver Corp. increased the size of its non-brokered listed issuer financing exemption (“LIFE”) announced on Feb 14, 2024, and its previously announced concurrent non-brokered private placement. The amended LIFE offering is to raise up to $3.2 M (Guigui, Chihuahua).
  • Almaden Minerals Ltd. informed that because of the low price of its share (due to the dispute with the Mexican government. – See below) the company will voluntarily delist from the NYSE and parallelly seek a listing on the OTCQB Marketplace (Ixtaca, Puebla).
  • Defiance Silver Corp. closed the final tranche of its previously announced non-brokered private placement for aggregate gross proceeds of C$2.6 M. Windermere Capital Fund SPC – Breakaway Strategic Resource SP, an insider of the company purchased C$1.2 M in shares, taking its ownership to a total of 41.5 M common shares and 3.05 M warrants. (Zacatecas, Zacatecas).
  • Guanajuato Silver Company Ltd. granted stock options and restricted share units to select officers, directors, employees and consultants (El Cubo, Guanajuato).
  • Sierra Madre Gold and Silver Ltd. upsized and closed its previously announced non-brokered private placement financing raising total gross proceeds of $1 M (La Guitarra, Estado de Mexico).

ON RESOURCES AND DEVELOPMENT

  • Atacama Copper Corp. started a 10,000 m diamond drilling campaign at its Cristina project in Chihuahua. “The Cristina project consists of multiple outcropping quartz veins that are frequently greater than 10 metre in width and extend for a currently known strike length of up to five kilometres. At least four parallel mineralized vein zones have been mapped and sampled to date”. Epithermal to mesothermal mineralization is known to occur over 1,100 m of vertical range, hosted by andesitic volcanic rocks of the Lower Volcanic Group and locally covered by Upper Volcanic Group rhyolitic rocks. Current open pit constrained resources are centered on the Guadalupe vein, comprising 752 K Oz AuEq in indicated resources and 777 K Oz AuEq in inferred resources. Atacama is trying to define an underground higher-grade resource.

ON DEALS AND CORPORATE ISSUES

  • United States Antimony Corp. announced plans to discontinue all Latin America operational activities and close its US Antimony Mexico, S.A. de C.V. (USAMSA) subsidiary, terminating the majority of its employees on March 11, 2024, immediately. “The Company intends to possibly sell or lease its USAMSA entity, operations, or assets over the next year and has initiated an active search for buyers or leasing opportunities of its operations and/or existing assets.” United States Antimony will continue to hold its existing Los Juarez mining claims in Queretaro. The reasons stated to close include high operating costs, new stringent Mexican mining laws, safety concerns, and the inability to collect back taxes from the Mexican government.
  • Vortex Metals Inc. announced the authorization by the Santiago Astata Agrarian Community to Vortex to carry on mineral exploration activities, including drilling, at its Zaachila project in Oaxaca. “Furthermore, the company has committed to forming an environmental monitoring committee with active community participation to oversee the activities and ensure environmental protection throughout the exploration program”.
  • Sonoro Gold Corp. appointed Katherine Reagan to the board of directors, in addition to her position of vice president of corporate development and corporate secretary (Cerro Caliche, Sonora).
  • Riverside Resources Inc. signed an option agreement with Fortuna Silver on Riverside’s Cecilia project in Sonora. The option term agreement envisages 5 years to earn 51% by spending US3.75 M, delivery of $150 K in cash payments and at least $500 K spent on work in the first year. Fortuna paid Riverside the initial $25 K on signing, and is to pay $25 K on filing of the agreement in Mexico, and further $25 K per year, with Riverside acting as operator charging a 10% management fee on top of work spending. Upon earning 51%, Fortuna may earn 80% by spending an additional $2.25 M in work over 3 years. After earning 80%, Fortuna might elect within 120 days to pay Riverside $5 M cash and grant Riverside a 2% NSR where 1% NSR may be purchased for $3 M, with Fortuna earning 100% in the project. The low sulfidation Au-Ag epithermal mineralization is associated to at least two nested dome complexes in sedimentary rocks.
  • CMC Metals Ltd. announced the cancellation of the $1.2 M private placement previously announced due to the failure, of the property owner of the Ag-Au Gavilanes project in Durango, to achieve an extension of the exploration permit with SEMARNAT (Mexico’s environmental Agency). “CMC has subsequently served notice of its intent to terminate the agreement with Sailfish Royalty Corp. to acquire the Gavilanes project but remains interested in securing exclusivity rights until October 2024.” The company intends to focus on its flagship Silverknife property in British Columbia.
  • Guanajuato Silver Company Ltd. announced the signing of a new third-party processing agreement with REM Marfil S.A. de C.V., a local Guanajuato based company. Under the agreement mineralized material from the past producing La Providencia mine is to be processed at the El Cubo and Cata processing facilities in Guanajuato. “The Agreement covers the processing of an initial 80,000 dry metric tonnes of mineralized material with a minimum head grade of 0.43 grams per tonne gold and 192 grams per tonne silver.”
  • Almaden Minerals Ltd. and Almadex Minerals Ltd. updated on its Request for Consultation delivered to the Mexican government in December 2023 according to the Comprehensive and Progressive Agreement of for Trans-Pacific Partnership (CPTPP). The Mexican government acknowledged receipt but never proposed dates for a consultation meeting. On March 14, 2024, Almaden delivered to Mexico written notice of its intention to submit a claim to arbitration under the CPTPP. “The damages relating to the Almaden and Almadex Claim will be for no less than US$200 million, in the aggregate. The Notice enables the Company to initiate arbitration should an amicable resolution of the dispute with the Mexican government not be reached.”

ON SOCIAL RESPONSIBILITY

  • No Relevant News.

On the image below: Specularite-quartz matrix breccia in a project in the Sonoran Desert. Picture by Jorge Cirett.

Otro revés a la 4T: juez suspende reforma a la Ley Minera de AMLO

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Las reformas a la Ley Minera fueron aprobadas por el Senado de la República el viernes 28 de abril, con 66 votos a favor.

Un juez concedió una suspensión parcial contra las reformas a Ley Minera impulsada por la 4T, informó Joaquín López-Dóriga.

De acuerdo con La Jornada, la suspensión se refiere únicamente al tercer párrafo del artículo quinto transitorio que establece que: “Las solicitudes en trámite de nueva concesión de exploración y explotación se desecharán sin mayor trámite, en virtud de lo dispuesto por el presente Decreto”.

En tanto que la empresa que promovió el amparo correspondiente, la canadiense First Majestic Plata, argumentó que ya tenía una solicitud de concesión….

Para continuar leyendo el artículo, entre a la siguiente liga:

https://www.radioformula.com.mx/nacional/2023/6/1/otro-reves-la-4t-juez-suspende-reforma-la-ley-minera-de-amlo-765115.html

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

/ Gambusino Prospector / Leave a comment

By Jorge Cirett                                             

During the 9th week of the year (February 26th to March 3rd, 2024), companies working in Mexico posted at least 23 news releases. One company reported on exploration at its property, one published its guidance for 2024, one released production results for the last quarter and one is stopping mining operations. Four companies announced financing rounds for a total of C$5.8 M, while one more announced a C$34 M financing. One company declared a dividend and one more the increase of its loan credit facility. One company informed on work at its advanced property and one more updated on ongoing development at a new property. One company is disposing of an interesting property, two announced director’s appointments and one more informed on its litigation process against the Mexican government. ON MEXICO ISSUES, the head of the Economy Secretariat announced the acquisition of the remaining 49% of the company producing salt from coastal flats in Baja California Sur. The first work pane under T-MEC was installed to review labor matters on a Zacatecas mine. ON EXPLORATION, in Sonora, Tocvan Ventures is to commence drilling at Pilar. ON MINING, Argonaut Gold announced its production guidance for 2024. Starcore International Mines released production results for the quarter. Golden Minerals is stopping mining at Velardeña, in Durango, and evaluating its alternatives. ON FINANCING, five companies informed on the opening or closing of financing rounds: Sierra Madre Gold and Silver (C$1 M), CMC Metals (C$1.2 M), Reyna Silver (C$2.5 M + $500 K), Defiance Silver (C$1.09 M), Vizsla Silver (C$34 M). Alamos Gold declared a quarterly dividend. Guanajuato Silver Company announced the increase of its gold loan credit facility to US$13.3 M. Aztec Minerals granted options to directors, management and consultants.  ON RESOURCES AND DEVELOPMENT, Torex Gold reported good drilling intercepts on brownfields and near mine exploration on several deposits at its Limón Guajes property in Guerrero. Avino Silver updated on development work at La Preciosa, in Durango. ON DEALS AND CORPORATE ISSUES, Ranchero Gold is disposing of its Santa Daniela property in Sonora. Silver Bull updated on the arbitration process on its dispute with the Mexican government. US Antimony and Hecla Mining announced director’s appointments. ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUES

  • Raquel Buenrostro, head of the Economy Secretariat (Secretaría de Economía) announced the nationalization of Exportadora de Sal, the company that produces salt from coastal plains in Guerrero Negro, Baja California Sur, by buying the 49% stake of the Japanese Mitsubishi company (In the 1980’s, the Mexican government managed even businesses that sold bicycles, the actual administration seems adamant in getting back to those times).   
  • The governments of the United States, Canada and Mexico installed the first work pane since the signature of the T-MEC, to resolve if there is or not a violation of workers’ rights at Grupo Mexico’s San Martín mine, in Zacatecas.   

ON EXPLORATION

  • Tocvan Ventures Corp. is set to commence drilling at its Pilar project in Sonora. After a year of focusing on bulk sampling and land consolidation, the company is to begin systematic drilling for resource definition and additional targeting. “The initial focus will be on infill and step-out targeting within and adjacent to the Pilar Main Zone including where previous drill campaigns successfully discovered the southern extension of the Main Zone, returning 108.6 meters of 0.8 g/t Au, including 9.4 meters of 7.6 g/t Au and 5 g/t Ag.”

ON MINING

  • Argonaut Gold Inc. announced its 2024 guidance for production, cost per ounce and exploration expenditure forecast, including figures for its Mexican operations. At La Colorada, in Sonora, Argonaut Gold is aiming to produce 5 to 6 K Oz Au on residual operations, at $1,600 to $1,700 cash cost and an AISC of $1,600 to $1,700 per Oz AuEq. At San Agustín, in Durango, Argonaut intends to mine 6.8 to 7.1 M tonnes of ore grading 0.45 to 0.50 gpt Au, recovering 37% to 39% Au to produce 35K to 40 K Oz Au at cash cost $1,650 to $1,750 per Oz Au and an AISC of $1,800 to $1,900 per Oz Au. Argonaut’s Mexican operations are expected to be cash flow breakeven. “A financial advisor has been appointed to assess strategic alternatives for the Mexican operations, including the sale of one or more of the assets”.
  • Starcore International Mines Ltd. announced production results for the Q3 ended January 2024, at its San Martin mine in Queretaro. During the period 52.7 K tonnes were milled, grading 1.58 gpt Au, 14.6 gpt Ag, recovering 89.1% Au, 50.3% Ag, to produce 2,514 Oz AuEq.
  • Golden Minerals Co. announced that it has elected to stop operations at its Velardeña properties in Durango. The company restarted mining operations in December 2023 with the goal of achieving positive cash flow during the first half of 2024. As the initial performance of the mine and processing plant has not achieved the results projected, the decision to cease mining operations was reached. Golden intends to “evaluate potential alternatives for the Velardeña Properties, which may include a sale of properties or winding up of certain of the Company’s Mexico operations.”

ON FINANCING

  • Sierra Madre Gold and Silver Ltd. announced a non-brokered private placement aiming to raise $1 M “with an existing long-term institutional shareholder”. Net proceeds are to be used to fund the care and maintenance on, and the mine restart plan at La Guitarra mine, in Estado de Mexico.
  • CMC Metals Ltd. is to carry a non-brokered private placement for aggregate gross proceeds of up to $1.2 M (Gavilanes, Durango).
  • Reyna Silver Corp. increased the size of its non-brokered private listed issuer financing exemption (LIFE) private placement previously announced due to investor demand, to go from $1.5 M to $2.5 M. The company is also completing a concurrent non-brokered private placement for gross proceeds of up $500 K to purchasers pursuant to other applicable exemptions under NI 45-106 (Guigui, Chihuahua).
  • Defiance Silver Corp. closed the first tranche of its previously announced private placement, for aggregate proceeds of C$1.09 M. Defiance also extinguished a debt for shares in the amount of $46.6 K (Zacatecas, Zacatecas).
  • Alamos Gold Inc. declared a quarterly dividend of US$0.025 per common share (Mulatos, Sonora).
  • Vizsla Silver Corp. completed its previously bought deal prospectus for aggregate gross proceeds of C$34 M, which includes the exercise in full of the underwriter’s over-allotment option for 3 M offered shares. The company paid to the underwriter a cash commission equal to 6% of the gross proceeds raised under the Offering. (Panuco, Sinaloa).
  • Guanajuato Silver Company Ltd. announced that the previously arranged US$7.5 M Gold Loan Credit Facility financing with Ocean Partners UK Ltd. has been increased to US$13.3 M. “The loan facility is for a term of 36 months from the date of the initial draw; it is repayable in equal fixed monthly installments of gold totalling approximately 338 troy ounces per month for a period of 30 months following a six-month grace period from the date of the initial draw.” The company also completed its shares-for-debt transaction totaling C$414.7 K by issuing shares, including those to three non-arms-length parties to settle for C$40 K (El Cubo mine complex, Valenciana mines complex, San Ignacio, in Guanajuato).
  • Aztec Minerals Corp. granted 3.27 M stock options to directors, management and consultants of the company (Cervantes, Sonora).

ON RESOURCES AND DEVELOPMENT

  • Torex Gold Resources Inc. released results from its 2023 drilling program at El Limón Guajes in Guerrero. Highlighted core length intervals comprise 22.91 m @ 10.94 gpt Au, 12 gpt Ag, 0.41% Cu; 7.50 m @ 8.09 gpt Au, 119 gpt Ag, 2.12% Cu At El Limón Sur Trend, 37.08 m @ 14.04 gpt Au, 9 gpt Ag, 0.38% Cu; 20.57 m @ 8.22 gpt Au, 29 gpt Ag, 1.02% Cu at El Limón Deep Trend, 12.33 m @ 8.92 gpt Au, 7 gpt Ag, 0.4% Cu; 4.66 m @ 2.13 gpt Au, 37 gpt Ag, 2.05% Cu at the Sub-Sill Trend and 4.00 m @ 11.78 gpt Au, 140 gpt Ag, 0.14% Cu; 3.55 m @ 10.07 gpt Au, 36 gpt Ag, 0.87% Cu at El Limón West Trend. During 2023, 60,699 m were drilled in 248 holes at El Limón Guajes brownfield and near mine exploration. For 2024, $12 M have been allocated to infill and step-out 54,500 m of drilling, focusing on further exploring the northeast trending structural corridors.
  • Avino Silver & Gold Mines Ltd. updated on ongoing development work at La Preciosa, in Durango. Current works and prep at the Avino mill include the rehabilitation of the office building, extensive sampling of historic surface mineralized stockpiles, haulage of such stockpiles to the Avino mill complex, reinforcement of walls at the mine entrance and previously developed underground areas and the rehabilitation of a thickener tank. “Once the rehabilitation work on the thickener is complete, production of a silver-gold concentrate from this stockpile material will commence which will be another milestone for the Company.”

ON DEALS AND CORPORATE ISSUES

  • Ranchero Gold Corp. approved on a special meeting of shareholders the disposition by its subsidiary the interest in four mining concessions covering the Santa Daniela property in Sonora. The disposition is subject to TSX approval, and the remaining US$1.9 M near-term cash payment will only be paid when the concessions have been transferred to Alamos Gold Inc.
  • United States Antimony Corp. added Joseph A. Carrabba as an independent director to its board (Juarez, Queretaro).
  • Silver Bull Resources Inc. updated on progress with its international arbitration claim against the Mexican government. Advances include the appointment of a three-person arbitration panel by the International Centre for Settlement of Investment Disputes, with a first session on February 13, 2024. A quantum expert was engaged by the company to assess its claims. Silver Bull is to file its Memorial in May 2024, with the Arbitration hearing slated for October 2025 (Sierra Mojada, Coahuila).
  • Hecla Mining Co. announced the appointment of Mark P. Board as a director, effective February 23, 2024 (San Sebastián, Durango).

ON SOCIAL RESPONSIBILITY

  • No Relevant News.

On the image below: subcrop of granitic rocks on a project in the Sonora desert. Picture by Jorge Cirett.

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

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Old mine working along a quartz vein

By Miguel A Heredia

During the 46th week of the year (November 13th to November 19th, 2023), at least 25 press releases were announced by companies working in Mexico, with eight disclosing deals and corporate issues, seven communicating production results, four announcing financing issues, three reporting resources and developments of their properties, one informing on exploration results, one commenting on Mexican issues, and one discussing social issues. ON MEXICO ISSUES, Torex Gold reported their best drilling intercepts in Mexico on the third week of November, 2023. ON EXPLORATION, In Sinaloa, Centenario initiated its first ever drilling program at its Eden project. ON MINING, Argonaut reported Q3, 2023 production and financial results from their Mexican mine operations. Sierra Metals announced Q3, 2023 production and financial results from its Bolivar Mine, Chihuahua. Orla reported Q3, 2023 production and financial results from its Camino Rojo Mine, Zacatecas. Discovery Silver reported Q3, 2023 financial results (Cordero project, Chihuahua). US Antimony will present Q3, 2023 financial results this November 17, 2023 (Los Juarez project, Queretaro). Starcore reported Q2, 2023 production results from its San Martin mine, Queretaro. Torex announced Q3, 2023 production and financial results from its El Limon-Guajes Mine Complex, Guerrero. ON FINANCING Sonoran Desert announced consolidation of its common shares (Cuatro Hermanos project, Sonora). GR Silver completed a non-brokered private placement for gross proceeds of $1.2M (Plomosas project, Sinaloa). Heliostar announced a warrant exercise incentive program to advance its Ana Paula project, Guerrero. Sierra Madre announced conversion of subscription receipts (La Guitarra mine, State of Mexico). ON RESOURCES AND DEVELOPMENT, Torex received approval from Mexico’s Secretariat of Environment and Natural Resources (SEMARNAT) for in-pit tailings deposition (Media Luna project, Guerrero). Discovery Silver provided a summary of key events for Q3, 2023 and subsequent to quarter-end (Cordero project, Chihuahua). Torex reported results from its 2023 El Limon-Guajes underground drilling program. ON DEALS AND CORPORATE ISSUES, Fortuna (San Jose mine, Oaxaca), Silver Storm (La Parrilla mine, Durango), and Vortex (Riqueza Marina project, Oaxaca) announced that they will be attending the 121 Mining Investment London Conference. Vizsla appointed Mr. Eduardo Luna to its Board of Directors (Panuco project, Sinaloa). Sierra Metals announced that it will start trading on the OTCQX Market in the United States (Bolivar mine, Chihuahua). Fresnillo completed a USD $171K payment to Radius for the development of Plata Verde property in Chihuahua. Monumental Minerals announced name change to Monumental Energy Corp. Silver Valley appointed new members to its Board of Directors (Mexi-Can Lithium-potash project in Zacatecas and San Luis Potosi). ON SOCIAL RESPONSIBILITY, Alamos Gold releases its annual Environmental, Social, and Governance (ESG) 2022 report (Mulatos Mine, Sonora).

ON MEXICO ISSUE

  • Torex Gold Resources Inc., reported their best drilling intercepts in Mexico on the third week of November, 2023. Details are shown in the table below:

ON EXPLORATION

  • Centenario Gold Corp., initiated its first ever drilling program at its Eden project in Sinaloa. This core drilling program will consists of 1.500m in 10-12 holes to test the strike and down-dip extensions of Eden’s Buenavista vein-breccia mineralized corridor E-NE and S-SW of the old mining workings area.

ON MINING

  • Argonaut Gold Inc., reported Q3, 2023 production and financial results from their Mexican mine operations (all dollar amounts are expressed in US dollars). At La Colorada, Sonora, the company reported that it sold 7,224 Oz Au; a cost of sales of $ 13,722,000; a cost of sales of $1,900 per Oz Au sold; a production cost of $10,883,000; a cash cost of $10,646,000; an AISC of $11,148,000; and cash cost and AISC of $1,474 and $1,543 per Oz Au sold respectively. At San Agustin, Durango, Argonaut reported that it sold 10,327 Oz Au; a cost of sales of $ 19,019,000; a cost of sales of $1,842 per Oz Au sold; a production cost of $17,011,000; a cash cost of $16,066,000; an AISC of $16,952,000; and cash cost and AISC of $1,550 and $1,642 per Oz Au sold respectively. At El Castillo, Durango, the company reported that it sold 4,111 Oz Au; a cost of sales of $ 6,559,000; a cost of sales of $1,595 per Oz Au sold; a production cost of $6,167,000; a cash cost of $6,091,000; an AISC of $6,229,000; and cash cost and AISC of $1,482 and $1,514 per Oz Au sold respectively.
  • Sierra Metals Inc., announced Q3, 2023 production and financial results from its Bolivar Mine, Chihuahua (all amounts are expressed in US dollars). The company processed 362,890 tonnes to produce 8.1M Lb CuEq at a cash cost and AISC of $2.15 and $3.57 per Lb CuEq payable respectively. Sierra Metals reported a cost of sales of $22,860,000; a total cash cost of $17,245,000; a total AISC of $30.874, 000; and a cash cost of $47.52 per tonne processed.
  • Orla Mining Ltd., reported Q3, 2023 production and financial results from its Camino Rojo Mine, Zacatecas (all amounts expressed in US dollars). The company produced 32,425 Oz Au and sold 31,061 Oz Au at a realized price of $1,921 per Oz Au. The company reported cost of sales of $16M, and a cash cost and AISC of $527 and $743 per Oz Au respectively. Orla announced revenue of $60.3M; a net income of $5.4; adjusted earnings of $6.6M; and earnings per share of $0.02; adjusted earnings per share of $0.02; a cash flow from operating activities before changes in non-cash working capital of $21.8M; and a free cash flow of $18.8M. Finally, it reported as of September 30, 2023, a cash and cash equivalent of $132.8M, and a net debt of $3.4M.
  • Discovery Silver Corp., announced Q3, 2023 financial results (all amounts expressed in Canadian dollars). The company reported a net loss of $2,207.479; a basic and diluted per share of $0.01; a net loss and total comprehensive loss of $3,059,766; and a total weighted average shares outstanding of $395,720,230. As of September 30, 2023 the company also reported a cash and cash equivalents of $59,931,068; total assets of $150,770,808; total current liabilities of $13,327,861; a working capital of $59,402,439; and total shareholders´ equity of $132,902,518. Subsequent to September 30, 2023, the Company received a refund for the cumulative IVA return filed of approximately $8.0M, including interest and inflationary adjustments (Cordero project, Chihuahua).
  • US Antimony Corporation will present Q3, 2023 financial results this November 17, 2023 (Los Juarez project, Queretaro).
  • Starcore International Mines Ltd., reported Q2, 2023 production results from its San Martin mine, Queretaro. The company milled 58,019 tonnes of 1.42 g/t Au and 15 g/t Ag with metallurgical recoveries of 85.23% and 48.81% respectively, to produce 2,420 Oz AuEq.
  • Torex Gold Resources Inc., announced Q3, 2023 production and financial results from its El Limon-Guajes Mine Complex, Guerrero (all amounts expressed in US dollars). The company produced 85,360 Oz Au and sold 81,752 Oz Au at a total cash of $1,086 per Oz Au, an AISC of $1,450 per Oz Au, at an average realized price of $1,944 per Oz Au. Torex reported revenues of $160.1M; cost of sales of $133M; earnings from mine operations of $27.1M; net income of $10.5M; adjusted net earnings of $11.1M; EBITDA of $79.4M; cash and cash equivalents of $209.4M; lease- related obligations of $21.1: and net cash of $188.3M. The company is confidence in achieving full year production guidance of 440,000 to 470,000 Oz Au.

ON FINANCING

  • Sonoran Desert Copper Corporation announced consolidation of its issued and outstanding common shares on a ratio of one post-consolidation share for four pre-consolidation shares. The shares of the company will trade on a post-consolidation basis under the new CUSIP 83569N207 (ISIN: CA83569N2077). “Company currently has 101,139,062 shares issued and outstanding. Following the consolidation, there will be approximately 25,284,766 shares issued and outstanding (Cuatro Hermanos project, Sonora).
  • GR Silver Mining Ltd., completed a non-brokered private placement for gross proceeds of $1.2M. Net proceeds will be used to pay outstanding amounts currently owing to persons who are arm’s length to the Company, to pay outstanding amounts owing to management and directors of the Company, and to fund general working capital (Plomosas project, Sinaloa).
  • Heliostar Metals Ltd., announced a warrant exercise incentive program designed to encourage the early exercise of up to 46,363,630 common share purchase warrants issued on March 16, 2023. “Each Incentive Warrant will allow the holder to acquire one Common Share at an exercise price of $0.40 for a period of two years following the date of the issuance of the Incentive Warrant. A holder may elect to exercise all, none, or a portion of their Outstanding Warrants. Each Warrant is currently exercisable to purchase one Common Share at $0.30 per Common Share until March 16, 2026. Any Outstanding Warrants remaining un-exercised after 12:00 p.m. PST on December 8, 2023 will remain outstanding and continue to be exercisable pursuant to their existing terms”. Net proceeds will be used to advance its Ana Paula project, Guerrero, and for general working capital.
  • Sierra Madre Gold and Silver Ltd., announced conversion of subscription receipts. “The escrow release conditions of all 5,123,092 subscription receipts have been satisfied and the proceeds from the purchase of the subscription receipts have been released from escrow. As a result, the subscription receipts have converted into a total of 5,123,092 common shares in the capital of the Company, and the Company now has access to the $3,330,010 in proceeds” (La Guitarra mine, State of Mexico).

ON RESOURCES AND DEVELOPMENT

  • Torex Gold Resources Inc., received approval from Mexico’s Secretariat of Environment and Natural Resources (SEMARNAT) regarding an amendment to the key environmental permit (MIA) for the Media Luna project in Guerrero, which will allow for the deposition of tailings into the mined-out Guajes open pit.
  • Discovery Silver Corp., provided a summary of key events for Q3, 2023 and subsequent to quarter-end. Highlights from the Q3, 2023 activities performed include: results reported from the Feasibility Study (FS) metallurgical test program demonstrating higher silver recoveries of up to 7% to the precious metals concentrate at significantly lower reagent consumption; formal submission for evaluation of the MIA to Secretaría de Medio Ambiente y Recursos Naturales (SEMARNAT), the federal government agency responsible for evaluating MIA submissions; completion of the reserve expansion and definition component of our FS program   consisting of an additional 35,000 m of drilling in over 100 drill holes completed since the cut-off for the Pre-Feasibility Study (PFS) with results demonstrating the potential to further grow reserves within and on the margins of the open pit; release of the Company’s 2022 Environmental, Social and Governance (“ESG”) report highlighting the Company’s current practices and priorities going forward (Cordero project, Chihuahua).
  • Torex Gold Resources Inc., reported results from its 2023 El Limon-Guajes (ELG) underground drilling program. As of the end of September, approximately 54,600 m across 235 holes had been drilled as part of the 2023 ELG brownfield and near-mine exploration and drilling programs, representing 96% of the planned metres for the year. Year to date, assay results have been received for 55% of the total holes drilled. Highlights at El Limon Trend Sur include holes LS-293 with 20.1 g/t Au, 12 g/t Ag, and 0.06% Cu (20.74 g/t AuEq) over 4.63M; hole LDUG-239 with 10.94 g/t Au, 12 g/t Ag, and 0.41% Cu (11.75 g/t AuEq) over 22.91m; hole LDUG-290 with 9.97 g/t Au, 8 g/t Ag, and 0.93% Cu (11.55 g/t AuEq) over 14.93m; hole LDUG-296 with 9.17 g/t Au, 9 g/t Ag, and 0.47% Cu (10.03 g/t AuEq) over 14.35m; and hole LDUG-289 with 5.26 g/t Au, 31 g/t Ag, and 1.56% Cu (8.13 g/t AuEq) over 12.43m. Highlights at El Limon Deep Trend include holes LDUG-256 with 32.95 g/t Au, 7 g/t Ag, and 0.54% Cu (33.91 g/t AuEq) over 9.08m; and hole LDUG-268 with 35.41 g/t Au, 12 g/t Ag, and 0.16% Cu (35.81 g/t AuEq) over 4.83m, plus 6.58 g/t Au, 4 g/t Ag, and 0.15% Cu (6.87 g/t AuEq) over 5.39m. Highlights at Sub-Sill Trend include hole SST-313 with 23.18 g/t Au, 9 g/t Ag, and 0.01% Cu (17.74 g/t AuEq) over 4.69m. Highlights at El Limon West Trend include holes LS-287 with 14.98 g/t Au, 73 g/t Ag, and 1.16% Cu (17.74 g/t AuEq) over 5.4m, plus 9.16 g/t Au, 10 g/t Ag, and 0.47% Cu (10.04 g/t AuEq) over 13.4m; and hole LS-229 with 2.36 g/t Au, 65 g/t Ag, and 2.33% Cu (6.9 g/t AuEq) over 3.38m.

ON DEALS AND CORPORATE ISSUES

  • Fortuna Silver Mines Inc.(San Jose mine, Oaxaca), Silver Storm Mining Ltd., (La Parrilla mine, Durango), and Vortex Metals Inc., (Riqueza Marina project, Oaxaca)announced that they will be attending the 121 Mining Investment London Conference from November 20 to 21, 2023.  
  • Vizsla Silver Corp., appointed Mr. Eduardo Luna to its Board of Directors (Panuco project, Sinaloa). “Vizsla has granted 400,000 stock Options at an exercise price of $1.36 to a director and a consultant of the Company, pursuant to the Company’s Omnibus Equity Incentive Compensation Plan. The Options are exercisable for a period of five years and will vest over the next two years. The Options are subject to the approval and policies of the TSX Venture Exchange and the NYSE American”.
  • Sierra Metals Inc., announced that it will start trading on the OTCQX Market in the United States under the symbol “SMTSF”. Sierra Metals continues to trade on the Toronto Stock Exchange under the symbol “SMT” (Bolivar mine, Chihuahua).
  • Fresnillo plc completed a USD $171K payment to Radius Gold Inc., for the development of its Plata Verde property in Chihuahua, under the terms of an Exclusivity Agreement between the companies. A maiden drill program is anticipated at Plata Verde in Q1 2024. Minera San Julian, a wholly owned subsidiary of Fresnillo plc, has an Exclusivity Period to January 7, 2024 to negotiate a definitive agreement that would include an option agreement to earn a 70% interest in Plata Verde.  Minera San Julian has the right to extend its Exclusivity Period for 6 additional months beyond January 7, 2024, by providing Geonorte, a wholly owned subsidiary of Radius Gold, a minimum of USD $500K to commence drilling at Plata Verde.  Such drilling shall be initiated within 3 months following January 7, 2024.
  • Monumental Minerals Corp., announced name change to Monumental Energy Corp., effective on November 21, 2023.  The company’s common shares will trade on the TSX Venture Exchange under the new name. In connection with the name change, the Company’s trading symbol will be changed to “MNRG”.
  • Silver Valley Metals Corp., appointed new members to its Board of Directors (Mexi-Can Lithium-potash project in Zacatecas and San Luis Potosi).

ON SOCIAL RESPONSIBILITY

  • Alamos Gold Inc., releases its annual Environmental, Social, and Governance (ESG) 2022 report, which outlines its performance across its operations, projects, and offices, and provides directions on planned initiatives for 2023. Highlights of the significant progress achieved by the company during the past year include: an 8% growth in its workforce, with 77% hired from local communities, and a 36% reduction in employee turnover rate; a company-wide target of a 30% reduction in absolute greenhouse gas (“GHG”) emissions by 2030, achieving a 6% reduction in total Scope 1 and 2 GHG emissions in 2022; zero significant environmental incidents during the year, including zero reportable tailings-related incidents; $1.8M invested in local community initiatives including donations, sponsorships, community programs and infrastructure; the Mulatos mine was awarded the Silver Helmet by the Mining Chamber of Mexico (CAMIMEX) in recognition of outstanding health and safety performance; the Mulatos mine was also awarded the Socially Responsible Company (Empresa Socialmente Responsible) Award by CEMEFI, the Mexican Center for Philanthropy, for the 14th consecutive year, and was the recipient for the Award for Corporate Ethics and Values in Industry for the third consecutive year; completed close to 1,700 training hours for occupational health and safety and emergency management; introduced the Island Gold Employee Wellness Program with licensed physical therapists on site; and three years in compliance with the World Gold Council’s Responsible Gold Mining Principles (RGMPs), and developed 12 new Alamos Sustainability Standards.

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, old mine working along a gold quartz vein hosted in rhyolites in a low-sulphidation epithermal vein system in a project in Zacatecas, Mexico. Photo by Miguel A Heredia.

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

/ Gambusino Prospector / Leave a comment

By Jorge Cirett                                             

During the 45th week of the year (November 6th to November 12th, 2023), companies working in Mexico posted 29 news releases. Two companies reported exploration advances on their properties and twelve companies released Q3 2023 reports. Two companies informed on financing rounds, one on the granting of share options and one more on its share consolidation process. One company amended the terms on a property acquisition, one is reviewing its strategic options forward, one more is waiting for mining permits and two announced director’s appointments. ON MEXICO ISSUES, Ganfeng Lithium Company is trying to negotiate with the Mexican government the recent cancellation of its mining concessions in Sonora. ON EXPLORATION, In Chihuahua, Mammoth Resources presented metallurgical results from Tenoriba. In Zacatecas, Radius Gold presented drilling results from Tropico. ON MINING, Capstone Copper, Endeavour Silver, Gold Resource, Pan American Silver, Aura Minerals, Gatos Silver, Fortuna Silver, SilverCrest Metals, Coeur Mining, Avino Silver, Golden Minerals and MAG Silver presented Q3 2023 production results. ON FINANCING, Tocvan Ventures is to close a CAD$500 K financing round. Golden Minerals closed a US$4.2 M public offering. Minaurum Gold granted stock options to directors, officers and consultants. Kootenay Silver announced the consolidation of its shares.  ON RESOURCES AND DEVELOPMENT, Heliostar Metals reported drilling results from its Ana Paula project in Guerrero. Prime Mining reported on drilling at its Los Reyes project in Sinaloa. ON DEALS AND CORPORATE ISSUES, Pantera Silver amended the terms on the acquisition of the Nuevo Taxco project in Guerrero. Bear Creek Mining announced the appointment of directors of the company. Gold Resource is reviewing its strategic alternatives, including the potential sale of the company. Minaurum Gold announced the appointment of Rubén Padilla to the board of directors. Osisko Development is waiting for mining permits at San Antonio, in Sonora.  ON SOCIAL RESPONSIBILITY, Argonaut Gold, SilverCrest Metals and Avino Silver presented information on their impact on communities.

ON MEXICO ISSUES

  • Ganfeng Lithium Company is trying to negotiate with the Mexican government the recent cancellation of its mining concessions in Sonora.

ON EXPLORATION

  • Radius Gold Inc. provided an update of drilling at its Tropico project in Zacatecas. The company completed an initial 1,300 m diamond drill program in eight holes, with assays received for the first seven holes. Drilling is planned to resume upon the receipt of remaining assays. Highlighted core length results comprise 29.18 m @ 0.34 gpt Au, 4 gpt Ag; 30.10 m @ 0.35 gpt Au, 3 gpt Ag; 44.20 m @ 0.28 gpt Au, 2 gpt Ag; 28.52 m @ 0.28 gpt Au, 3 gpt Ag; 36.25 m @ 0.55 gpt Au, 9 gpt Ag (including 7.52 m @ 1.40 gpt Au, 29 gpt Ag); 12.30 m @ 0.44 gpt Au, 3 gpt Ag. “The expected hydrothermal breccia pipe was not found vertically below the sinter as predicted by the geophysics, instead is rather un-expectedly dipping at 45o east and has now been defined under soil cover 200m to the east of the outcropping target”.
  • Mammoth Resources Corp. announced results from bottle roll tests performed on three composite samples of assay reject sample material of drill holes from the Carneritos area of its Tenoriba property in Chihuahua. Results from oxide material reached 92% and 88% dissolution Au and 55% Ag in 12 hours and 94% and 91% Au, 59% Ag after 96 hours. Results for the oxidized-sulfide transition material reached 72% Au, 61% Ag in 12 hours and 75% Au, 64% Ag in 96 hours. “Based on the success from these initial bottle roll tests, Mammoth has commenced testing a coarser fraction of the oxidized and mixed oxidized-sulfide zone material and preliminary tests of a sulfide sample and looks forward to reporting on these results in the near future”.   

ON MINING

  • Capstone Copper Corp. reported financial results for Q3 2023, including figures from its Mexican operations. Of a consolidated production of 40.3 K tonnes Cu during the quarter, 5.9 K tonnes were produced at Cozamin, in Zacatecas, at $1.85 cash cost per Lb Cu. “Q3 2023 infill drilling at the Mala Noche Main Vein West Target was on hold while the development of the lower elevation mine cross-cut was completed. Infill drilling will recommence in early Q4 2023 to support an updated mineral resource estimate in 2024”.
  • Endeavour Silver Corp. announced financial and operating results for Q3 2023. Consolidated production at the Bolañitos (Guanajuato) and Guanaceví (Durango) mines during the quarter of 1.46 M Oz Ag, 9,089 Oz Au (1.87 M Oz AgEq) at cash cost $17.94 per Oz Ag and ASIC of $24.10 per Oz Ag. “Cost metrics were significantly impacted by lower production at the Guanaceví mine and increased operating development resulting from mine sequencing changes required to focus on improved access and ventilation as well as plant maintenance required during the last week of September”. Cash position of $41 M and working capital of $75.9 M by the end of the period. During the quarter $23.4 M were raised, primarily to fund the Terronera mine construction.
  • Gold Resource Corp. presented operational results for the year to date from its Don David mine in Oaxaca. A total of 14,777 Oz Au, 778 K Oz Ag, 8,772 tonnes Zn, 904 tonnes Cu, 3,681 tonnes Pb were produced on the year to date at total cash cost after co-product credits of $1,389 per Oz AuEq on the last quarter. At the quarters end the company had a cash balance of $6.7 M with no debt and working capital of $13.8 M.
  • Pan American Silver Corp. reported results for the third quarter 2023, without disclosing production figures by project. The company produced 5.7 M Oz Ag, 244.2 K Oz Au, with a silver segment cash cost of $13.13 and an AISC of $18.19, to end the period with $832.1 M, inclusive of cash and investments of $386 M, a $750 M revolving line of credit and $809 M of total debt primarily related to the acquisition of Yamana. At La Colorada, in Zacatecas, “the Company invested $14.0 million of project capital in Q3 2023 to advance the La Colorada Skarn project, largely for exploration and the preliminary economic study underway, as well as advancing the excavation of the concrete-lined ventilation shaft”. The preliminary economic study for the project is to be released by year-end 2023.
  • Aura Minerals Inc. filed consolidated financial statements for the period ended on September 30th 2023. Consolidated production from all its mines reached 64,875 Oz AuEq, of which 27,933 Oz AuEq were produced at Aranzazu, in Zacatecas. The AISC of consolidated production was $1,437 per Oz Au. Aura Minerals ended the quarter with a cash balance of $179 M and a net debt of $112.1 M.
  • Gatos Silver Inc. announced third quarter 2023 financial and operating results. The company has a 70% interest in the Cerro Los Gatos mine in Chihuahua, which processed 268.3 K tonnes at a rate of 2,916 tpd, averaging 0.30 gpt Au, 285 gpt Ag, 1.84% Pb, 3.82% Zn, to produce 1.28 K Oz Au, 2.22 M Oz Ag, 9.5 M Lb Pb, 13.8 M Lb Zn, or 3.46 M Oz AgEq at co-product cash cost of $14.42 and a co-product AISC of $17.64 per Oz AgEq. As of October 31, 2023, the company had $57.7 M in cash, no debt and a $50 M revolving credit facility available.
  • Fortuna Silver Mines Inc. reported financial and operating results for the third quarter 2023. The company consolidated production from its operations in several countries was 94,821 Oz Au, 1.68 M Oz Ag. At the San Jose mine in Oaxaca, 247.5 K tonnes were processed at a rate of 2,845 tpd, grading 189 gpt Ag, 1.14 gpt Au, recovering 91% Ag, 91% Au, to produce 1.37 M Oz Ag, 8,205 Oz Au, at a cash cost of $13.84 per Oz AgEq and an AISC of $18.04 per Oz AgEq. Infill drilling led to the discovery of the Yessi vein, a blind structure 200 m horizontally from existing underground infrastructure, with highlighted true width intercepts of 9.9 m @ 1,299 gpt AgEq and 5 m @ 621 gpt AgEq.
  • SilverCrest Metals Inc. released its financial results for the third quarter of 2023 and expanded on October 2023 operational results from Las Chispas mine, in Sonora. During the period the company mined 83,800 tonnes, processing 114,500 tonnes at a daily rate of 1,245 tpd, averaging 4.35 gpt Au, 413 gpt Ag, recovering 98.3% Au, 98.1% Ag to produce 15,700 Oz Au, 1.49 M Oz Ag at cash cost $6.53 per Oz AgEq and an AISC of $12.23 per Oz AgEq. During the quarter 14,183 m of exploration drilling was completed, 83% in resource conversion and the rest in new vein targets, at a cost of $2.8 M. By the end of the Period SilverCrest held 70.0 M in cash and 11.7 M in bullion.
  • Coeur Mining Inc. reported third quarter 2023 financial results including figures from its operations in Mexico. At Palmarejo, in Chihuahua, 501.7 K tonnes were milled, averaging 1.71 gpt Au, 114.1 gpt Ag, recovering 97.6% Au, 86.9% Ag to produce 26,870 Oz Au, 1.60 M Oz Ag at CAS of $917 per Oz Au and CAS of $15.56 per Oz Ag. “The focus of exploration has transitioned from primarily mapping and sampling to more intensive drilling from four rigs during the quarter compared to one rig in the previous quarter…. focused on finding the intersection of structures where there is potential for a higher-grade shoot”. During the period Palmarejo apported 34% of the gold and 69% of the silver produced by Coeur, at the lowest costs per ounce. Full-year production is expected be 100 to 112.5 K Oz Au, 6.5 to 7.5 M Oz Ag at Palmarejo. Coeur ended the quarter with $53 M in cash and $220 M available capacity under its $390 M revolving credit facility and $7 M of marketable securities.
  • Avino Silver & Gold Mines Ltd. released consolidated financial results for the third quarter 2023. At the Avino mine in Durango, 154.5 K tonnes were milled to produce 237 K Oz Ag, 2,077 Oz Au, 1.14 M Lb Cu, or 591.2 K Oz AgEq at cash cost $16.90 per Oz AgEq. Recent deep drilling indicates that “The vein system continues to be open along strike and at depth”.  At the end of the period Avino had $1.85 M in cash and $7.44 M in working capital.
  • Golden Minerals Co. released financial results and business summary for the quarter ending on September 30, 2023. The company is working on “permitting, equipment readiness, arrangements with union staff, contract miners, plant operators and support personnel. The Velardeña mines last operated in November 2015”. Also during the period a PEA report for the Velardeña properties in Durango was filed. Mining activities were concluded at Rodeo, in Durango in June 2023, and continued processing stockpiled material until August, with the pouring of the last doré in September. At the end of the period Golden Minerals held $1.6 M in cash and no debt.
  • MAG Silver Corp. announced unaudited financial results for Q3 2023. At Juanicipio (Fresnillo PLC 56% / MAG Silver 44%) in Zacatecas, 313.1 K tonnes were mined, 322.2 K tonnes processed @ 523 gpt Ag, 1.32 gpt Au, 1.33% Pb, 2.25% Zn, to produce 4.29 M Oz Ag, 7.76 K Oz Au, 7.69 M Lb Pb, 9.59 M Lb Zn at cash cost $4.68 per Oz Ag and an AISC of $9.19 per Oz Ag. The Juanicipio processing facility has achieved nameplate capacity, with Ag recovery above 88%. By the end of the period MAG held working capital of $55.1 M, including cash of $58.5 M and no long-term debt.

ON FINANCING

  • Tocvan Ventures Corp. announced the incoming closing a non-brokered private placement for gross proceeds of up to CAD$500 K (Pilar, Sonora).
  • Golden Minerals Co. announced and closed during the week a public offering, raising US$4.2 M (Velardeña, Durango).
  • Minaurum Gold Inc. granted 1.75 M common share stock options to directors, officers and consultants (Alamos Silver, Sonora).
  • Kootenay Silver Inc. announced that the 10 to 1 consolidation of the outstanding common shares of the company will be made effective on November 14, 2023 (Columba, Chihuahua).

ON RESOURCES AND DEVELOPMENT

  • Heliostar Metals Ltd. reported results from two diamond drill holes at the Parallel Panel target at the Ana Paula project in Guerrero. This target is 50 m north of the High Grade Panel, and was identified over the last few months. Highlighted core length intervals comprise 14.75 m @ 5.06 gpt Au (including 5.3 m @ 11.7 gpt Au); 18.1 m @ 2.3 gpt Au; 147.05 m @ 4.13 gpt Au (including 16 m @ 11.2 gpt Au and 7.0 m @ 14.5 gpt Au and 8.6 m @ 8.70 gpt Au). “The new holes demonstrate good continuity of width and grade within the Parallel Panel”.
  • Prime Mining Corp. reported expansion drilling results from Los Reyes project in Sinaloa. Highlighted true width intervals comprise 20.10 m @ 2.11 gpt Au, 29 gpt Ag (including 6.30 m @ 5.74 gpt Au, 43 gpt Ag); 5.50 m @ 1.06 gpt Au, 73 gpt Ag (including 1.80 m @ 2.57 gpt Au, 79 gpt Ag); 4.45 m @ 1.04 gpt Au, 8 gpt Ag (including 1.00 m @ 3.26 gpt Au, 20 gpt Ag). “Today’s results, along with previously released holes in this area, have extended mineralization approximately 250m down-dip from the May 2023 resource pits”. There are now six rigs operating at Los Reyes, extending the high-grade Z-T area shoots at depth and along strike, expanding the two other resource areas and exploring new generative targets. “Prime has completed over 48,000 m of its planned 60,000 m 2023 drill program”.

ON DEALS AND CORPORATE ISSUES

  • Pantera Silver Corp. amended the terms of the Nuevo Taxco option agreement to acquire the 1,100-ha project in Guerrero. Under the new terms Pantera is to issue 1.5 M shares in lieu of making a final cash $150 K payment. A final 2 M shares payment will be due on October 30th, 2024 and under the amended terms the vendor has the option to accept the 2 M shares or $150 K cash plus 500 K shares. The final $800 K work commitment has been extended to be competed before the end of 2025.
  • Bear Creek Mining Corp. announced the appointment of Ms. Sandra Daycock Ms. Susan Toews as directors of the company, and Mr. Brian Peer to the position of Chief Operating Officer (Mercedes, Sonora).
  • Gold Resource Corp. presented a review of strategic alternatives. “Notwithstanding the technical successes …… in light of the continued challenges facing the Company, the Company’s Board of Directors has decided to initiate a formal review process, with the assistance of outside financial and legal advisors, to evaluate strategic alternatives for the Company. The comprehensive process will begin immediately and will evaluate a broad range of options to maximize shareholder value, including a potential sale of the Company”.
  • Minaurum Gold Inc. announced the appointment of Dr. Ruben Padilla, PhD to the board of directors (Alamos Silver, Sonora).
  • Osisko Development Corp. presented its third quarter 2023 report, with a few lines on the San Antonio project in Sonora. The company produced 13,591 Oz Au from the San Antonio heap leach since commencing processing of stockpiled inventory in Q1 2022. During Q3 production from the remaining stockpile inventory was completed, with no further production envisaged. “The Company awaits next steps from the government of Mexico with respect to the permitting process”.

ON SOCIAL RESPONSIBILITY

  • Argonaut Gold Inc. released its 2022 Environmental, Social, and Governance (ESG) Report and ESG strategy. For the first time released detailed energy and climate, water management, and biodiversity, with a water recycling rate of 91% on all its mines. Company-wide the Lost Time Injury Rate was lowered from 0.32 in 2021 to 0.07 in 2022. Zero operational disruptions due to labor or community issues.
  • Silver Crest Metals Inc. signed “a collaboration agreement with Comisión Estatal del Agua (CEA) and the municipality of Arizpe to work on agriculture infrastructure, sewage system and water concessions for agricultural use for the local communities”.
  • Avino Silver & Gold Mines Ltd. currently holds “448 direct jobs at the mine, which has increased substantially since the restart of operations in 2021, which typically translates to 3 times the number of indirect jobs for services, consultants and suppliers in the surrounding communities and the Durango area”.  

On the image below: Geologist Julio Carcamo in a Sonoran Desert project. Picture by Jorge Cirett.