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

IMG_0788 - copiaBy Jorge Cirett

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

ON MEXICO ISSUES

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

ON EXPLORATION

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

ON MINING

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

ON FINANCING

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

ON RESOURCES AND DEVELOPMENT

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

ON DEALS AND CORPORATE ISSUES

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

ON SOCIAL RESPONSIBILITY

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

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

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

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

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By Jorge Cirett

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

ON MEXICO ISSUES

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

ON EXPLORATION

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

ON MINING

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

ON FINANCING

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

ON RESOURCES AND DEVELOPMENT

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

ON DEALS AND CORPORATE ISSUES

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

ON SOCIAL RESPONSIBILITY

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

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

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

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

Mn oxide-calcite fault vein-bx

By Miguel A Heredia

During the forty-five week of the year (November 4th to November 10th, 2019), at least 37 press releases were announced by companies working in Mexico, with nine communicating production and financial results, eight disclosing deals and corporate issues, six announcing financial rounds, five informing on exploration results, four reporting on resources and development of their projects, three commenting on Mexican issues, and two discussing issues on social responsibility.  ON MEXICO ISSUES, according to the Director of Mines of Zacatecas, there are five new mine projects in the state to be developed in 2020. Newmont-Goldcorp restated the dialogue process with the Cedros community on its Peñasquito mines in Zacatecas. Local communities and small local merchants expressed their support for the continuity of the Peñasquito mine. ON EXPLORATION, In Sonora, Silver Viper mobilized an exploration crew to its Virginia project to commence a drilling program at the El Rubi target area, and Oceanus reported underground and surface sampling results from its El Tigre project. In Sinaloa, Vizsla reported underground sampling from its Panuco-Copala project.  In Zacatecas, Advance Gold outlined a km long by 400-500m wide chargeability anomaly at its Tabasqueña project. In Jalisco, GoGold released drill results from 4 holes collared at its Los Ricos project.  ON MINING, Alio Gold, Argonaut, Coeur, Endeavour, Excellon, First Majestic, Hecla, Leagold, and Pan American presented Q3 2019 production and financial results from its Mexican operations.  ON FINANCING, Discovery Metals closed a non-brokered private placement for gross proceeds of $19M (Cordero project, Chihuahua). Goldplay closed a brokered private placement for $3M (San Marcial project, Sinaloa).Solaris Copper announced its intention to undertake a non-brokered private placement to raise gross proceeds of up to  CAD $5.5M (La Verde, Michoacan). Advance Gold closed the first tranche of a non-brokered private placement for gross proceeds of $113K (Tabasqueña project, Zacatecas). Orex announced that intends to undertake a non-brokered private placement to raise gross proceeds of up to $1M (Sandra-Escobar project, Durango). San Marco revised its previously announced non-brokered private placement and now intends to rise gross proceeds for up to CAD $376.6K. It also closed subscription books for unit and flow through shares private placement for gross proceeds of CAD $40K (Chunibas project, Sonora). ON RESOURCES AND DEVELOPMENT, Capstone announced high grade Cu-Ag results from 103 infill and step-out drill holes at its Cozamin mine in Zacatecas. Vizsla closed its option agreement to acquire 100% interest of Panuco-Copala project in Sinaloa. Torex extended mineralization 150m below current reserves at its El Limon Deep deposit in Guerrero. Mexus announced that its Merrill Crowe Au recover plant is complete and operational at its Santa Elena mine in Sonora. Mag Silver informed about the activities carried out at its Juanicipio project mine development in Zacatecas during Q3, 2019. ON DEALS AND CORPORATE ISSUES, Colibri received TSX approval for its acquisition of Yaque Minerals (Mezquite and Jackie projects, Sonora). Vizsla closed its option agreement to acquire 100% interest in Panuco-Copala property in Sinaloa. Great Panther announced the appointment of its VP Exploration and VP People & Culture (Topia mine, Durango). Solaris Copper announced management changes of its team (La Verde project, Michoacan). Starcore presented results from its annual general meeting of shareholders (San Martin mine, Queretaro). Mako Mining provided a corporate update and status of its Mexican operation. Compañía Minera Cuzcatlán, a subsidiary of Fortuna Silver Mines revealed that it is analyzing to invest in a new plant in Mexico (San Jose mine, Oaxaca). Minera Autlán announced its intention to raise its commitment to gold (Lluvia de Oro-La Jojoba, Sonora). ON SOCIAL RESPONSIBILITY, Agnico Eagle participated in the reconstruction of the drinking water system at Yepachi, Chihuahua, with a total investment of MXP $4M. Argonaut participated in multiple social programs related to their Mexican operations.

ON MEXICO ISSUES

  • The Secretariat of Economy in Zacatecas, through its Director of Mines, revealed that new five mines will be developed in the state in 2020, standing out Juanicipio in Fresnillo, Camino Rojo in Mazapil , and San Nicolas in Villa Garcia municipalities. Zacatecas is one of the most prolific areas for mining in the country; however, he is aware of the social problems faced by some of the mining companies which operate in the state. He informed that the local government seeks to generate the conditions for mining companies to invest safely in new projects.
  • Newmont-Goldcorp Corporation, restated the dialogue process with the community of Cedros, municipality of Mazapil on Peñasquito mine. A new agreement was signed for the community delegates, with a strong commitment of both parties, by the community not to block again the mine and from the company to attend on time the concerns and proposal from the Ejido.
  • Local communities and small local merchants, expressed their support for the continuity of Peñasquito mine. The communities of Cedros, El Rosario, La Pardita, Sábana Grande, Tanquecillos, Tecolotes, Mazapil and El Trigo said they are in favor of the Peñasquito Mine, stating that it has provided benefits to their families. At a press conference, representatives of the aforementioned communities reported that thanks to the company they have work, so they asked the state government to support them and that, through the dialogue avoids a new block. They affirmed that they are against the blockades and the definitive closure of the mine, since this one supports around 25 communities. They said the mining company has provided a source of work to the people of the communities and do not want it to disappear.

ON EXPLORATION

  • Silver Viper Minerals Corp., mobilized an exploration crew to its Virginia project in Sonora to commence a phase II drilling program at El Rubi target area, where previous drilling carried out in 2018 intersected 3.18 g/t Au and 228 g/t Ag (6.42 g/t AuEq) over 6m of true width. Phase II will test the extension of this structure along trend and at depth on 50m sections with the aim of generating enough information for maiden resource estimation at El Rubi.
  • Oceanus Resources Corporation, presented underground and surface sampling results from the Caleigh, Canon Combination and Protectora Veins at its El Tigre project in Sonora. In the Caleigh Vein, underground channel sample ETU-1007 returned 1,896 g/t Ag and 6.4 g/t Au (2,376 g/t AgEq) over a true width of 0.50m, and ETU-1006 returned 1,971 g/t Ag and 4.64 g/t Au (2,318 g/t AgEq) over a true width of 0.50m. In the Canon Combination Vein, underground channel sample ETU-1012 returned 1,794 g/t Ag and 0.25 g/t Au (1,813 g/t AgEq) over a true width of 0.50m. In the Protectora Vein, underground channel sample returned 378 g/t Ag and 2.01 g/t Au (529 g/t AgEq) over a true width of 0.50m. Surface samples collected on this vein reported 374 g/t Ag and 3.32 g/t Au over 0.7m wide; 192 g/t Ag and 0.57 g/t Au (235 g/t AgEq) over 0.5m wide; and 169 g/t Ag and 1.0 g/t Au (244 g/t AgEq) over 0.50m wide. “The results from the mapping and sampling of the underground workings and at surface present a series of high priority drill targets over a 2 kilometer strike length north of the old El Tigre Mine, which we intend to drill.”
  • Vizsla Resources Corp., reported encouraging underground sampling results from its Panuco-Copala project in Sinaloa. Highlights results from the underground sampling at the San Carlos mine are 5.65 g/t Au and 612 g/t Ag (1,120 g/t AgEq) over  6m on development level 4, including 10.5 g/t Au and 1,120 g/t Ag (1,960 g/t AgEq) over 3m; 2.55 g/t Au and 517 g/t Ag (721 g/t AgEq) over 4.5m on development level 5, including 3.51 g/t Au and 721 g/t Ag (1.002 g/t AgEq) over 3m; and 2.12 g/t Au and 298 g/t Ag (468 g/t AgEq) over 5.5m on development level 4, including 3.76 g/t Au and 591 g/t Ag (892 g/t AgEq) over 1.5m. These results are part of a mapping and sampling program to better understand mineralization at Panuco project.
  • Advance Gold Corp., completed a second phase of a 3D-IP survey and has outlined a N-S trending chargeability anomaly of 1km long by 400-500m wide on its Tabasquena project in Zacatecas. It remains open in both directions as well as at depth. A number of boreholes are now planned to intersect this anomaly.
  • GoGold Resources Inc., released drill results from 4 new holes collared at its Los Ricos project in Jalisco. Three of the 4 holes were drilled at El Troce area and significant intersections were encountered in hole LRGG-19-059 with 0.94 g/t Au and 134 g/t Ag (2.72 g/t AuEq) over 11m, including 1.95 g/t Au and 277 g/t Ag (5.65 g/t AuEq) over 3.5m; and hole LRGG-19-60 with 0.32 g/t Au and 66 g/t Ag (1.19 g/t AuEq) over 16m, including 83 g/t Au and 162 g/t Ag (2.98 g/t AuEq) over 3m. Hole LRGG-19-57 was drilled at the Main area and intersected 0.91 g/t Au and 131 g/t Ag (2.65 g/t AuEq) over 14.1m, including 2.14 g/t Au and 253 g/t Ag (5.50 g/t AuEq) over 5.3m. GoGold completed in Mid-October 2019, a phase 1 drilling program which consisted of 10,000m, and has already started a second phase of drilling, adding a third rig  machine to the program.

ON MINING

  • Alio Gold Inc., continued with processing of low grade stock pile at its san Francisco mine in Sonora, resulting in the placement of 12.8K Oz Au on the pad. The company announced that the low grade stock pile will be exhausted in Q4, 2019, after which crushing will cease, and operations will solely focus on recovery of the residual inventory ounces.
  • Argonaut Gold Inc., presented Q3, 2019 production and financial results from its Mexican operations. The company produced 44.7K Oz AuEq at a cash cost of USD $901 per Oz Au produced and sold 45.6K Oz Au at an AISC of USD $1,134 per Oz Au sold. It also reported revenue for USD $66.8, cash flow from operating activities before changes in operating working capital of USD $17.2M, net income of USD $4.9M, adjusted net income of USD $6.5M, and a net cash increase of USD $11.7M. Argonaut also reported mine by mine production results for the period Q3, 2019. At El Castillo Complex in Durango, it milled 4.8M tonnes of 0.35 g/t Au to produced 30.3K Oz AuEq. At El Castillo, 2.4M tonnes of 0.39 g/t Au were milled to produce 14.3K Oz Au and 23.3K Oz Ag. This mine sold 14.6K Oz Au and 16.3K Oz Ag in this quarterly period, at a cash cost of $1,038 per Oz Au sold. At San Agustin, 2.4M tonnes were milled with a grade of 0.32 g/t Au to produce 15.2K Oz Au and 36.9K Oz Ag. This mine sold 15.7K Oz Au and 15K Oz Ag in this quarterly period, at a cash cost of $848 per Oz Au sold. At La Colorada, Sonora, the company milled 1.45M tonnes of 0.6 g/t Au, to produced 14K Oz Au and 33.6K Oz Ag. La Colorada sold 13.8K Oz Au and 34K Oz Ag at a cash cost of $800 per Oz Au sold.
  • Coeur Mining Inc., announced Q3, 2019 production and financial results from its Palmarejo mine in Chihuahua. It milled 442,464 tons of 2.8 g/t Au and 152 g/t Ag to, with a metallurgical recoveries of 81.7% and 79.6% respectively, to produce 31.8K Oz Au and 1.72M Oz Ag. Adjusted costs applicable to sales were USD $660 per Oz Au and USD $8.95 per Oz Ag. Coeur reported cash flow from operating activities of USD $36.3M and total capital expenditures of USD $7.8M for a total free cash flow of USD $28.5M.
  • Endeavour Silver Corp., reported consolidated Q3, 2019 financial and production results from its four Mexican operations: Guanacevi mine in Durango, Bolañitos and El Cubo in Guanajuato, and El Compas in Zacatecas. The company processed 234, 196 tonnes to produce 948.5K Oz Ag and 9.7K Oz Au (1.72M Oz AgEq), at a cash cost of $11.51 per Oz Ag produced and AISC of $21.53.
  • Excellon Resources Inc., reported Q3, 2019 production and financial results from its Platosa mine in Durango. The company mined 18,167 tonnes and processed 17,235 tonnes with grades of 512 g/t Ag, 4.4% Pb, and 6% Zn, to produce 257.5K Oz Ag, 1.3M Lb Pb, and 1.65M Lb Zn (427.1K Oz AgEq), at a cash cost per Oz Ag payable of $18.18 and AISC net of by-products per Oz Ag payable of $28.46. Metallurgical recoveries were 87.2%, 77.7%, and 76.5% for Ag, Pb, and Zn respectively. Excellon reported revenues for $5.9M, a net loss of $2.9M, and a net working capital of $$9.0M.
  • First Majestic Silver Corp., presented Q3 production results from its Mexican operations. The company reported revenues for $97M, a net loss of $8.6M, operating cash flow before movements in working capital and taxes of $34.6M, cash and cash equivalent of $118.6M, and a working capital of $149.2M. The below table shows the mine by mine production results:

  • Hecla Mining Company, announced Q3 production and financial results from its San Sebastian mine in Durango. It produced 541.6K Oz Ag and 3.7K Oz Au at an AISC of $$7.21 per Oz Ag.
  • Leagold Mining Corporation, produced from its Los Filos mine in Guerrero, 40,922 Oz Au at an AISC of $1,001 per Oz Au produced, and sold 41,343 Oz Au during Q3, 2019, with associated revenue of $58.6M.
  • Pan America Silver Corp., reported Q3, 2019 production and financial results from its la Colorada, Zacatecas and Dolores, Chihuahua mines. At La Colorada, the company produced 2.1M Oz Ag and 1,200 Oz Au, at a cash cost of $2.82 per Oz Ag and an AISC of $4.03 per Oz Ag. At Dolores, it produced 1.5M Oz Ag and 33.1K Oz Au, at an AISC of $7.45 per Oz.

ON FINANCING

  • Discovery Metals Corp., closed a non-brokered private placement for gross proceeds of $19M, including $5M investment from Eric Sprott, which represents 19.9% of the interest of Discovery on a non-diluted basis. Proceeds will be used to continue the exploration programs at its exploration properties (Cordero project, Chihuahua, Puerto Rico project, Coahuila).
  • Goldplay Exploration Ltd., closed a brokered private placement financing of $3M. Gross proceeds will be used to continue resource expansion drilling including underground and surface exploration on its san Marcial project in Sinaloa.
  • Solaris Copper Inc., announced its intention to undertake a non-brokered private placement to raise gross proceeds of up to CAD $5.5M. Gross proceeds will be used to advance permitting, exploration, and drilling activities at their projects. (La Verde project, Michoacan).
  • Advance Gold Corp., closed the first tranche of a non-brokered private placement for gross proceeds of $113K. The company will use the gross proceeds to advance its Tabasqueña project in Zacatecas.
  • Orex Minerals Inc., announced its intention to undertake a non-brokered private placement to raise gross proceeds of up to $1M. Orex will use the net proceeds to maintain its 40% share of the Sandra Escobar project in Durango and fund its 40% share of the upcoming work program, and to make the necessary payments under its option to acquire 100% of the San Luis del Cordero project, Durango, and for general corporate and capital purposes.
  • San Marco Resources Inc., revised its previously announced non-brokered private placement and now intends to rise gross proceeds for up to CAD $376.6K. It also closed subscription books for unit and flow through shares private placement for gross proceeds of CAD $40K (Chunibas project, Sonora).

ON RESOURCES AND DEVELOPMENT

  •  Capstone Mining Corp., announced high grade Cu-Ag results from 103 infill and step-out drill holes from 200 hole program at its Cozamin mine in Zacatecas. Aim of this program is more than double the current reserve base. Significant drill intersection were encountered in hole CG-19-U498 with 5.02% Cu, 0.4% Zn, and 72 g/t Ag over a true width of 12.3m, including 9.02% Cu, 0.7% Zn, and 127 g/t Ag; in hole CG-18-S381 with 7.27% Cu, 0.3% Zn, and 220 g/t Ag over a true width of 5.1m; in hole CG-18-S372 with 5.53% Cu, 0.2% Zn, and 117 g/t Ag over a true width of 20.1m, including 11.32% Cu, 0.3% Zn, and 242 g/t Ag over a true width of 6.4m.
  • Torex Gold Resources Inc., reported drilling results from its 2019 exploration program at its El Limon-Guajes complex deposit in Guerrero. The drilling program has been successful in extending mineralization 150m below current reserves at its El Limon Deep deposit. Significant mineralization was encountered in hole LDUG-039 with 15.6 g/t Au over 38m; in hole LDUG-049 with 20.9 g/t Au over 12m, and in hole LDUG-056 with 15.7 g/t Au over 16.8m. El Limon Deep deposit remains open down dip and along strike.
  • Mexus Gold US, announced that its Merrill Crowe Au recovery plant at its Santa Elena mine in Sonora is complete and operational. “The plant is capable of handling Mexus’3000 ton a week mining operation and will allow for future expansion as well”.
  • Mag Silver Corp., informed about the activities carried out at its Juanicipio project mine development in Zacatecas during Q3, 2019. The company reported that “earthmoving and foundation preparation commenced for the construction of the 4,000 tpd beneficiation plant. Mill fabrication is progressing on schedule, and both the SAG and ball mills are expected to be shipped to site early 2020. Flotation cells, processing tanks and minor process equipment pieces are starting to arrive on site. Thickener tanks and drive and rakes fabrication are well advanced. Underground development has now reached 23Km of development and continues. According to the operator, Fresnillo plc, permitting for the tailings impoundments should be completed in the fourth quarter of this year and mill construction is on track for commissioning by late 2020”.

 ON DEALS AND CORPORATE ISSUES

  • Colibri Resources Corporation, received TSX approval for its acquisition of Yaque Minerals by a CAD$ 1M payment by way of a 5-years convertible debenture bearing 2.5% annual interest and carries a $0.20 per share conversion privilege. The Yaque´s acquisition includes two projects in Sonora: El Mezquite and Jackie, located less than 10Km east of the Nicho deposit owned by Minera Alamos, which is expected to start production in 2020, with initial production of 25K-30K Oz Au per year, with a mine life of more than 6 years. El Mezquite is a 2km by 1km N-S trending hydrothermal alteration zone on silicified feldspar porphyry, with a potential Au target area of at least 600m by 300m. A 3D-IP survey was carried out on this anomalous area which resulted in the identification of chargeability and resistivity anomalies underlying the surface area of potential. 321 grab samples have been collected of which 13% returned Au values oscillating from 0.1 to 3.41 g/t Au. Jackie is located 2km south of the El Mezquite but it has seen very little exploration work to date. Some prospecting work is planned for 2020.
  • Vizsla Resources Corp., closed its previously announced option agreement on November 5, to acquire 100% interest in Panuco-Copala property in Sinaloa. Vizsla confirmed that it has previously loaned USD $700K to Canam in order to satisfy the initial payment due under the terms of the options.
  • Great Panther Mines Limited, announced the appointment of its VP Exploration and VP People & Culture (Topia mine, Durango).
  • Solaris Copper Inc., announced management changes of its team, appointed its CEO, CFO, VP Corporate Affairs and Corporate Secretary, and a new member to its Board of Directors (La Verde project, Michoacan).
  • Starcore International Mines Ltd., reported results from its annual general meeting of shareholders (San Martin mine, Queretaro).
  • Mako Mining Corp., provided a corporate update and status of its Mexican operation. At its la Trinidad mine in Sinaloa, Au production is nearing conclusion, with Au sales being used to fund ongoing reclamation and severance costs. Mining and process plant equipment has been moved to USA and the lab equipment will be moved to Nicaragua soon. Mako has reported that has not been successful in receiving any insurance for damages caused by Hurricane Willa at its Trinidad mine in October, 2018. It has filed a lawsuit for over USD $7M against the Insurance Company. Mako also announced that it has reached an agreement with the primary mining contractor on the debt of approximately USD $11.3M. “Despite being ring-fenced from the rest of Mako’s corporate structure, the Company chose to settle with the contractor by making a USD $4M upfront payment and agreeing to make two additional USD $1M payments 12 months and 24 months from signing of the settlement agreement.  As this liability was being accounted for at approximately USD$11.3M, a substantial accounting gain is expected in the next quarterly report.
  • Compañía Minera Cuzcatlán , a subsidiary of Fortuna Silver Mines, analyzes to invest in a new mining plant located 40km from its San Jose mine, Oaxaca. The company asked government support to mediate between the company and the communities, since the new plant will require between USD $200-300M. The decision has to be taken next year, so they need the support of the authorities to reach a social agreement with the communities.
  • Compañía Minera Autlán, A.B .de C.V., announced its intention to raise its commitment to gold. The intention of that business and the integration towards gold was always to reach 20 to 25% of the top line and about 30 to 35% of the operating cash flow (EBITDA). In addition, the company estimates they will close this year with and investment of USD $35M to support other areas of its business, to add USD $45 M in an integrated way (Lluvia de Oro-La Jojoba, Sonora).

ON SOCIAL RESPONSIBILITY

  • Agnico Eagle Mines Limited, participated, along with the municipal presidency of Yepachi, Chihuahua, in the reconstruction of the drinking water system for this community. Yepachi is the second largest community in this area and has years of lag in terms of the supply and quality of drinking water. A total of MXP $4M will be invested, an amount that will be contributed by 50% by the municipal presidency and the other part will be borne by Agnico Eagle, which operates within the territory of the Yepachi Ejido.
  • Argonaut Gold Inc., has participated in several programs with the communities where the company operates. At La Colorada, Sonora, Argonaut signed a health collaborative agreement with the Centro de Rehabilitación Integral Teletón and hosted a cultural event with the Cultural Institute of Sonora. In Durango, participated in collaboration with the local government in an interactive learning pavilion where local attendees and families could know about the company´s mining activities and projects. It also sponsored an international forum on geological and mining heritage organized by the Universidad Autónoma de Baja California Sur, to discuss possible historical tourism and ecotourism in mining communities. Finally, Argonaut hosted students’ interactive workshops in the municipality of Dolores, Hidalgo in the village of san Anton in Guanajuato, Mexico, and hosted a soprano singer and the Latin American quartet at the Mining Cultural Centre of the Mexican chamber of commerce in Mexico City.

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

On the picture above, a Mn oxides-calcite fault vein-bx structure from a prospect in Chihuahua, Mexico.  Photo by Miguel A Heredia.

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

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By Jorge Cirett

During the 42nd week of the year (October 14th to October 20th, 2019), at least 29 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, The Congress dominated by Morena approved a bill dramatically changing the rules od operation of the Mining Fund for 2020 . ON EXPLORATION, in Sonora, Magna Gold released drilling results for its Mercedes project, and announced new exploration targets. In Sinaloa, Oroco Resource commenced work at the Santo Tomas project. In Durango, Gainey Capital commenced drilling at Las Margaritas. In Veracruz, Azucar Minerals discovered another mineralized center at El Cobre.  ON MINING, Sierra Metals, Fortuna Silver, Avino Silver, Gold Resource and McEwen Mining released third quarter 2019 production results. Argonaut Gold reported an accident that resulted in the death of two contractor’s employees at La Colorada, in Sonora. ON FINANCING, Kootenay Silver closed a $2 M private placement. Gainey Capital granted options to directors, officers, employees and consultants. Candelaria Mining discontinued a private placement due to unfavorable market conditions. ON RESOURCES AND DEVELOPMENT, SilverCrest Metals reported development mining sampling has returned less tonnage but more AgEq ounces at its Las Chispas property in Sonora. Azure minerals is planning a two-stage drill program at the Loma Bonita gold target of its Alacran property in Sonora. ON DEALS AND CORPORATE ISSUES, Tamino Minerals elaborated on the company’s history and incoming work at its El Volcan project in Sonora. Bacanora Lithium presented the current situation of Ganfeng’s investment on the company. Megastar Development entered into an option agreement regarding the Cerro Minas concession in Oaxaca. Riverside Resources released information on its BHP financing agreement for generative copper exploration in NW Sonora. Golden Minerals entered into an option agreement with Magellan Gold to sell its interest in the Santa Maria project in Chihuahua. ON SOCIAL RESPONSIBILITY. The Grupo Mexico Foundation donates 175 K trees in Queretaro. Ternium granted scholarships to 145 students. Esperanza Silver presented a sustainable project in Morelos.

ON MEXICO ISSUES

  • The Camara de Diputados (Deputies Chamber, or Congress) approved legal reforms concerning the use of the Mining Fund. The changes were approved only by the Morena party and allied members, taking away the planning and overseeing of funds (generated by a special tax on mining) from local mining municipalities, enforcing what is seen as federal discretional use.

ON EXPLORATION

  • Gainey Capital Corp. commenced a diamond drilling campaign at the Las Margaritas project in Durango. This initial phase comprises 1,080 m of drilling in 11 holes focused on the best mineralization exposed at the surface, where sampling has returned up to 73.7 gpt Au.
  • Azucar Minerals Ltd. Announced the discovery of another mineralized center at its El Cobre project in Veracruz. Two holes tested the El Primo target area, defined by a gold, copper and molybdenum soil anomaly. Relevant intervals comprise 5.25 m @ 0.60 gpt Au, 0.26% Cu and 8.45 m @ 0.20 gpt Au, 0.29% Cu in one hole and 200 m @ 0.40 gpt Au, 0.24% Cu in another hole, including 86.50 m @ 0.70 gpt Au, 0.42% Cu; which includes 55.60 m @ 0.94 gpt Au, 0.56% Cu; which includes 10 m @ 1.44 gpt Au, 0.85% Cu. This target is at least a kilometer away from other already identified mineralized centers within the property.
  • Oroco Resource Corp. commenced technical field work, initial environmental baseline studies and permitting at its Santo Tomas project in Sinaloa. This work is to be followed by a 3D induced polarization geophysical survey and the first phase of confirmation diamond drilling. The company holds an option to acquire a 56.7% interest in the 1,173 ha core concessions of the project, and might increase that interest up to an 81.0% interest with a project investment of up to CAD$30 M. Oroco also holds a 77.5% interest in 7,808 ha surrounding and adjacent to the core concessions.

ON MINING

  • Argonaut Gold Inc. informed on an accident involving a contractor that resulted in death by electrocution of two individuals while performing maintenance work on a haul truck at La Colorada mine in Sonora. Operations were suspended on October 11 and resumed on October 12, 2019.
  • Sierra Metals Inc. reported third quarter 2019 production, including figures from its Mexican operations. At Bolivar in Chihuahua, 331.8 K tonnes were processed at a 3,792 tonnes per day rate (tpd) @ 0.86% Cu, 20.5 gpt Ag, 0.31 gpt Au, recovering 81.3% Cu, 79.0% Ag, 62.3% Au to produce 5.115 M Lb Cu, 173 K Oz Ag, 2,173 Oz Au. At Cusi, also in Chihuahua, 70.4 K tonnes were processed at an 805 tpd rate @ 141.5 gpt Ag, 0.15 gpt Au, 0.14% Pb, recovering 84.6% Ag, 39.6% Au, 78.3% Pb to produce 271 K Oz Ag, 135 Oz Au, 168 K Lb Pb.
  • Fortuna Silver Mines Inc. disclosed production results for the third quarter 2019, including figures from its Mexico operations. At San Jose in Oaxaca, 268 K tonnes were milled @ 219 gpt Ag, 1.40 gpt Au, recovering 82.4% Ag, 90.6% Au, to produce 1.71 M Oz Ag, 10,942 Oz Au, at a cash cost per ton of US$70.80.
  • Avino Silver & Gold Mines Ltd. released third quarter 2019 production results from its Avino property in Durango. Consolidated figures comprise 202.7 K tonnes processed @ 44 gpt Ag, 0.33 gpt Au, 0.33% Cu, recovering 76% Ag, 67% Au, 68% Cu to produce 221.9 K Oz Ag, 1,448 Oz Au, 1.38 M Lb Cu. At the Avino mine 122.2 K tonnes were processed @ 41 gpt Ag, 0.31 gpt Au, 0.58% Cu to produce 139.4 K Oz Ag, 900 Oz Au, 1.3 M Lb Cu; 17.8 K tonnes were processed from the San Gonzalo mine stockpiles (the mine is now closed) @ 56 gpt Ag, 0.41 gpt Au to produce 29.6 K Oz Ag, 194 Oz Au; From historic above ground stockpiles 62.6 K tonnes were processed @ 47 gpt Ag, 0.33 gpt Au, 0.33% Cu to produce 232.1 K OZ Ag, 1,528 Oz Au, 311 K Lb Cu.
  • Gold Resource Corp. reported preliminary production for the third quarter 2019, including figures from its operations in Mexico. At the company’s Oaxaca Mining Unit, a total of 7,462 Oz Au, 473.8 K Oz Ag, 492 tonnes of copper, 2,459 tonnes of lead and 6,057 tonnes of zinc were produced.
  • McEwen Mining Inc. released production details for the third quarter 2019, including figures from its Mexican operations. At its El Gallo property in Sinaloa, 3,018 Oz Au were produced by residual leaching of the heap leach pad.

ON FINANCING

  • Kootenay Silver Inc. closed its non-brokered private placement of $2 M that was fully subscribed by Ninepoint Silver Equities Class with Sprott Asset Management LP acting as sub-advisor. (Columba, Chihuahua).
  • Candelaria Mining Corp. announced that a private placement previously announced has been discontinued due to unfavorable market conditions. The company intends to conduct an offering on a non-brokered private placement basis for aggregate gross proceeds of up to $700 K. Closing of the new private placement is expected to be on November 30, 2019 (Caballo Blanco, Veracruz).
  • Gainey Capital Corp. granted 1.5 M incentive stock options to its directors, officers employees and consultants (Las Margaritas, Durango).

ON RESOURCES AND DEVELOPMENT

  • SilverCrest Metals Inc. informed development work has intersected better grades than those in the resources estimate for the Babicanora vein at its Las Chispas property in Sonora. Underground mining along 180 m of the Babicanora vein (20% of the mineralized length on area 51) reported 33% less tonnes, but 65.7% more AgEq ounces for the interval. In total 4,170 tonnes were extracted @ 15.18 gpt Au and 1,071 gpt Ag (2,209 gpt AgEq), while the resource estimate in this zone graded 4.48 gpt Au and 556 gpt Ag (892 gpt AgEq). Underground sampling returned up to 2.8 m @ 94.52 gpt Au, 8,320 gpt Ag (15,409 gpt AgEq). SilverCrest plans to have a stockpile of 25-30 K tonnes of high-grade material containing 800 K to 1 M Oz AgEq, extracted by development work to the end of 2019.
  • Azure Minerals Ltd. is planning a two-stage drill program on resource expansion at Loma Bonita, within the Alacrán project in Sonora. High-grade intersections on the resource boundary, like 47 m @ 2.8 gpt Au, 33 gpt Ag and 67 m @ 1.6 gpt Au, 21 gpt Ag (both from surface) favor the continuity of the ore body. First pass sampling of historical workings south of Cerro Alacrán returned up to 3,675 gpt Ag, 21.1 gpt Au, 2.3% Cu, 33.5% Pb, 21.0% Zn. Applications for environmental approval have been submitted.

ON DEALS AND CORPORATE ISSUES

  • Tamino Minerals Inc. elaborated into the long and convolute company history and financing (El Volcan, Sonora).
  • Bacanora Lithium PLC. Announced the completion of the “Invested Agreement and Offtake Agreement” which together make the “Strategic Investment” of Ganfeng Lithium Co.. The relevant approvals have been completed and Bacanora has now received £21.96 M of funds from Ganfeng, for a 29.99% equity interest in Bacanora Lithium PLC and a 22.5% JV investment directly in the Sonora Lithium Project. The vice-president of Wangfeng was appointed a director of Bacanora. “The Bacanora project team in Mexico continues to progress the final design work for the mine, concentrator and kiln sections of the processing plant. The Ganfeng technical team has initiated work on the hydrometallurgical circuit…”
  • Tamino Minerals Inc. informed it is going to present a NI 43-101 report on its El Volcan property in Sonora once a registration statement is filed to the SEC and the company becomes fully reporting.
  • Megastar Development Corp. has entered into an option agreement with Gunpoint Exploration Ltd. to acquire 100% interest in the 899 ha Cerro Minas mining concession (title (234333) in Oaxaca. The agreement entails the payment of US$10 K and 100 K Megastar shares on the effective date, US$20 K and 150 K shares on the first anniversary, US$30 K and 250 shares on the second anniversary and US$40 K and 300 K shares on the third anniversary, with Gunpoint retaining a 1.5% NSR royalty, of which 0.5% can be bought by US$1.0 M.
  • Riverside Resources Inc. informed that the first two to three quarters of the exploration financing agreement with BHP for generative copper exploration in NW Sonora will be centered on regional prospect generation. The program envisages a minimum two-year US$2 M budget, and upon advancing projects to the operation phase (Phase II), BHP has the option to fund up to US$5 M for drilling and other exploration expenditures. Riverside is to receive US$200 K by project that makes it to the second phase.
  • Golden Minerals Co. entered into an option agreement with Magellan Gold Corp. to sell its rights to acquire a 100% interest in the Santa Maria project, in Chihuahua. Magellan has a 150 days due diligence period to decide whether to execute the option, on which it has to pay $1 M cash, with Golden Minerals retaining a 6.5% royalty until a total of $3 M has been paid as royalty, with Golden retaining a 3% NSR royalty for the life of the mine. If Magellan fails to get the mine to production within one year from closing the deal, Golden will get back the property.

ON SOCIAL RESPONSIBILITY

  • The Grupo Mexico Foundation donates 175 plants and trees in Queretaro. Grupo Mexico is aiding to reach the goal of planting 250 thousand trees in the Queretaro municipality. Grupo Mexico is the number one producer of tree saplings in the country.
  • Ternium delivers scholarships and supports education in a mining zone. The Roberto Rocca Education Program and the Universidad de Colima granted this year scholarships to 145 students from universities in Mexico City, Nuevo Leon, Coahuila, Veracruz, Puebla, Colima and Michoacan. Since its inception in 2006, the Roberto Rocca Education Program has granted 3,000 scholarships.
  • Esperanza Silver (Alamos Gold) presented a sustainable project for the Esperanza project in Morelos. The project involves the company’s involvement in the remediation of a nearby community landfill, and the collaborative support on the Lagunas de Zempoala, the national park Tepozteco, the biological corridor Ajusco-Chichinautzin as well as the state parks El Texcal, Sierra Montenegro and the biosphere reserve Sierra de Huautla.

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:  Gneiss hosted quartz-feldspar veinlet from a project in Oaxaca. Picture by Jorge Cirett.

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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 Second Week of September, 2019.

 

Fault-bx with Mn oxides

By Miguel A Heredia

During the thirty-seven week of the year (September 09th to September 15th, 2019), at least 31 press releases were announced by companies working in Mexico, with ten informing on exploration results, ten reporting on resources and development of their projects, four announcing financial rounds, four disclosing deals and corporate issues, and one commenting on Mexican issues.  ON MEXICO ISSUES, Karen Flores was appointed as general director of the Mining Chamber of Mexico (CAMIMEX).  ON EXPLORATION, In Sonora, Aloro released drilling results from its Los Venados project, Riverside identified three targets from mapping and sampling its recently acquired Los Cuarenta project, Tamino announced its exploration expenditure guidance for 2019-2020, and Oceanus announced the commencement of the 2019 exploration program at its El Tigre project. In Chihuahua, Radius and Pan American Silver announced the commencement of the phase 3 drilling work at its Amalia project. In Durango, Gainey awarded drilling contract for its Las Margaritas project.  In Jalisco, GoGold reported drill results from its Los Ricos project, and Silver Spruce announced high grade Au assay values from surface rock sampling conducted at its Cocula project. In Veracruz, Mexican Gold discovered a new resistivity anomaly at Cinco Señores area within its Las Minas project. ON MINING, US Antimony reported estimated sales for August 2019. Consolidated Zinc announced August 2019 production from its Plomosas mine in Chihuahua.  ON FINANCING, Consolidated Zinc announced a plan to rise $3.5M via private placement and pro-rata non-renounceable rights offer (Plomosas mine, Chihuahua). Fortune announced a USD $40M bough deal financing (San Jose mine, Oaxaca), and granted an over-allotment option to purchase up to an additional USD $6M aggregate. Silver Viper increased its private placement to $4M (La Virginia project, Sonora). Defiance announced that it has applied for approval to extend by one year the expiry date of 5.75M of outstanding warrants (San Acacio project, Zacatecas).   ON RESOURCES AND DEVELOPMENT, Almaden provided an update of the progress achieved to build its Ixtaca mine in Puebla. Discovery Metals announced mobilization for a 35,000m drilling program at its recently acquired Cordero project in Chihuahua. Azure reported that Au-Ag exploration is underway on its Alacran project in Sonora. Impact released drilling results and expands at depth the San Ramon mine in its Zacualpan mining district in Mexico state.  Leagold announced drilling results from its Los Filos mine in Guerrero. Orla awarded the engineering, procurement, and construction contract for its Camino Rojo project in Zacatecas. US Antimony reported progress on its Los Juarez Au-Ag project in Queretaro.  Oroco filed a geological technical report regarding its Santo Tomas project in Sinaloa. Sonoro reported that a program of 3D modelling, mapping and sampling is underway at its Cerro Caliche project in Sonora. ON DEALS AND CORPORATE ISSUES, Almaden appointed its new VP Project Development to oversee detailed engineering and construction of its Ixtaca project in Puebla. Golden Goliath granted stock options to directors, officers, employees and consultants (San Timoteo project, Chihuahua). Golden Minerals announced termination of sale agreement with Autlan regarding the sale of certain of its Mexican properties. Millrock completed the sale of certain of their Mexican mining concessions to Riverside. ON SOCIAL RESPONSIBILITY, no relevant news.

 ON MEXICO ISSUES

  • Karen Flores, was appointed as general director of the Mining Chamber of Mexico (CAMIMEX). It will be the first time since its foundation in 1906 that CAMIMEX will be run by a woman.

ON EXPLORATION

  • Aloro Mining Corp., released drilling results from the last four holes collared in the southeastern area of its Los Venados project in Sonora for a total of approximately 1,347m drilled. The drilling intersected a felsic dome with 3-10 weight percent pyrite content in pervasive altered volcanic flow units and intrusive dome rock unit up to 200 meters thick. Assay results were discouraging showing very low grade Au, between 0.1-0.2 g/t Au, in scattered intercepts from 1.5-7.6m wide throughout the broad zone of pyritized felsic dome. No more work is planned in this area of the concession.
  • Riverside Resources Inc., completed the acquisition of Los Cuarenta project in Sonora from Millrock, where it has identified three targets. The Santa Rosalia target is the highest priority of the 3 targets and is defined by past open cut and underground vein mining where recent sampling has shown a strike length of more than 500 m and open to the east and west.
  • Tamino Minerals Inc., announced its business development plan and exploration expenditure guidance for the period 2019-2020. The plan is to identify and acquire high-quality, advanced-stage exploration projects and discover early-stages opportunities that can be strategically tested and quickly progressed to key decision point. Exploration expenditure guidance are planned to be $5M in 2019-2010, with $2M in the Amalia project, $1.2M in the El Volcan project, and $1.8M in other small exploration projects and acquisitions.
  • Oceanus Resources Corporation, announced the commencement of the 2019 exploration program at its El Tigre project in Sonora. The Company has recently mobilized the exploration team back to the property to continue prospecting and mapping, as well as, sampling in the area of the Caleigh vein. The objective of this program is to establish drill targets.
  • Radius Gold Inc., and Pan American Silver Corp., announced the commencement of the phase 3 drilling program at its Amalia project in Chihuahua. Pan American Silver intends to complete further geological mapping, re-logging of previous drill core, and drilling an additional 2,500 m as part of the phase 3 program.
  • Gainey Capital Corp., announced that it has finalized the reparation and construction of approximately 39Km of road and a water reservoir system to support its planned drilling program at its Las Margaritas project in Durango. The company received the approval from SEMARNAT to drill up to 32 targets. Gainey has already awarded the drilling contract and will commence soon a first phase of drilling comprising 2,190m to test 16 drill targets.
  • GoGold Resources Inc., released drill results from four new holes drilled at the Main Zone, and underground channel sampling results from its Los Ricos project in Jalisco. Significant intersections were encountered in hole LRGG-19-034 with 0.92 g/t Au and 177 g/t Ag (3.28 g/t AuEq) over 20.1m, including 3.41 g/t Au and 621 g/t Ag (11.68 g/t AuEq) over 4.9m; and in hole LRGG-19-035 with 1.29 g/t Au and 127 g/t Ag (2.99 g/t AuEq) over 24.4m, including 3 g/t Au and 258 g/t Ag (6.44 g/t AuEq) over 9.8m. In addition, GoGold rehabbed the historic El Troce old working where a mapping and channel sampling program was conducted. Encouraging results were obtained with grades varying from 0.98-6.8 g/t Au, and 44-492 g/t Ag over 2-3 m wide. Given the results, the company has decided to move a drill to test the targets at El Troce area.
  • Silver Spruce Resources Inc., reported high grade Au assay values from surface rock sampling conducted at its Cocula project in Jalisco. Nine out of twenty six rock chip samples recently taken from surface outcrop returned Au assay values of 0.88 g/t Au up to 12.55 g/t Au, Ag values of 13 g/t Ag up to 53 g/t Ag, and Pb values of 0.2% Pb up to 7.4% Pb. These recent sample assays continue to confirm the presence of widespread Au mineralization at surface, along with Ag and Pb values. The company also announced that it filed the first ever 43-101 technical report for its advanced Au Cocula project. Silver Spruce will continue its due diligence activities designed to support a definitive purchase decision of the property.
  • Mexican Gold Corp., discovered a new resistivity anomaly at the Cinco Señores target area in its Las Minas project in Veracruz. This notable TEM resistivity anomaly, similar in size to the El Dorado Au-Cu-Ag resource, extends more than 700m towards the Las Minillas target. The company plans to drill test this anomaly in the near future.

ON MINING

  • US Antimony Corporation, reported estimated sales for August 2019. It sold 146.6K Lb Sb and 1159 tons of zeolites. “The Company continues to take steps to reduce its costs of producing Sb products in response to the lower global sale prices.”
  • Consolidated Zinc Limited, provided August 2019 production results from its Plomosas mine in Chihuahua. The company mined 2,794 tonnes of 14% Zn, 8% Pb, and 42 g/t Ag, and processed 2,913 tonnes of 13.5% Zn, 8% Pb, and 39 g/t Ag.

ON FINANCING

  • Consolidated Zinc Limited, announced a plan to rise A$3.5M to fund the Plomosas mine operations in Chihuahua, to process the pending sale of Zn-Pb concentrate currently stockpiled, and for working capital. A$2.48M will be rised through pro-rata non-renounceable rights offer, and A$1M through a private placement.
  • Fortuna Silver Mines Inc., entered into an agreement to rise USD $40M via a bought deal financing. The company also granted an over-allotment option to purchase up to and additional USD $6M aggregate (San Jose mine, Oaxaca).
  • Silver Viper Minerals Corp., increased its private placement from $3M to $4M. The net proceeds will be used to continue exploration and development of its La Virginia project in Sonora.
  • Defiance Silver Corp., announced that it has applied for TSX Venture Exchange approval to extend by one year the expiry date of an aggregate of 5.75M of outstanding warrants exercisable at $0.45 per share (San Acacio project, Zacatecas).

ON RESOURCES AND DEVELOPMENT

  •  Almaden Minerals Ltd., provided an update to their shareholders of the progress achieved to build its precious metal Ixtaca mine in Puebla. The company reported that the waste rock and flotation tailings have low potential for metal leaching. It also reported that the mine plan considers a dry stack filtering tailings facility, and co disposal with waste rock with no tailings dam, eliminating the risk of a tailings dam failure. Almaden has received letters from INAH clearing the area for development, from PROFEPA confirming it has conducted exploration work in accordance with the environmental code, and from the authority responsible for indigenous affairs confirming that no indigenous communities are located in the mine impact area. Local community members have publicly expressed their support of the project. One key aspect to develop the Ixtaca mine was the strong support granted for over 800 people from the local community. They signed a declaration of support for the project and delivered to the environmental authorities, and a Memorandum of Understanding has been signed with local water users. The Municipality has included mining as one of its accepted investment and development activities. Based on the FS, an initial investment of USD $174M is required to generate an after-tax internal rate of return of 42% and NVP of USD $310M, using a discount rate of 5% and precious metals prices of USD $1,275/Oz Au and USD $17/Oz Ag. The project would employ over 400 people during an 11-year mine life and would also provide updated infrastructure to a highly marginalized region.
  • Discovery Metals Corp., announced mobilization to conduct a 30,000 – 35,000 m drilling program at its recently acquired Cordero project in Chihuahua. The company plans to commence it in about five weeks from now and expect to be completed in twelve months, with the focus of delineating and discovering the highest-grade phases and domains of the mineralized system, and testing new high priority targets. The company has estimated 20,000-25,000m of drilling at the Cordero deposit and 10,000m on six regional areas that require follow-up work and drill testing.
  • Azure Minerals Limited, reported that Au-Ag exploration is underway around Mesa de Plata and Loma Bonita deposits on its Alacran project in Sonora. The Mesa de Plata deposit (10.5M tonnes of 82 g/t Ag for 27.4M Oz Ag, including 1.8M tonne of 275 g/t Ag for 15.5M Oz Ag) remains open to the west but is constrained in this direction by the concession boundary. To the north and east the mineralization has been truncated by erosion, however the mineralized zone remains open to the south.  Potential for repetitions of Mesa de Plata exist further to the north, where outcropping vuggy silica forms similar-looking silicified ridges. Further exploration is planned for this area. At the Mesa Bonita deposit (5.4M tonnes of 0.9 g/t Au and 28 g(/t Ag for 150K Oz Au and 4.8M Oz Ag), the mineralized zone is constrained to the west by erosion into a valley but remains open to the north, south, east and at depth down-dip. Being open in several directions, there is good potential that further drilling will significantly increase the size of the resource.
  • Impact Silver Corp., presented drilling results from its Zacualpan project in Mexico state and extended the mineralization 50m to depth at the San Ramon mine. Significant drill intersections were encountered in hole MPZ-284-19 with 321 g/t Ag, 0.38 g/t Au, 0.19% Pb and 0.60% Zn over 2.62m true width, hole MPZ-285-19 with 1,393 g/t Ag, 2.15 g/t Au, 2.4% Pb, and 6.4% Zn over 1.58m true width and 305 g/t Ag, 0.97 g/t Au, 0.7% Pb, and 1.7% Zn over 1.38m true width, hole MPZ-287-19 with 418 g/t Ag, 0.5% Pb, and 0.5% Zn over 2.14m true width, and hole MPZ-288-19 with 214 g/t Ag, 0.9 g/t Au, 0.1% Pb, and 0.3% Zn over 1.87m true width, and 317 g/t Ag, 0.3% Pb, and 0.4% Zn over 1.22m true width. Known mineralization over the total San Ramon workings has a down dip length of over 500m. Further drilling is planned to further test the extent of this prolific zone.
  • Leagold Mining Corporation, announced drilling results from its Los Filos underground and the Guadalupe open pit mines in Guerrero. Highlights from the Los Filos underground mine include 8.86 g/t Au over 45m and 6.59 g/t Au over 15.46m. Highlights from the Guadalupe open pit include 1.4 g/t Au over 32.73m, including 7.71 g/t Au over 2.67m, and 6.2 g/t Au over 10.61m, including 10.55 g/t Au over 5.2m. The drill program at Los Filos will contribute to the reserve base and extend the mine life. At Guadalupe, the drilling program is testing for extensions of the mineralization at depth and also confirming the limited nature of old underground workings prior to open pit mining in this area.
  • Orla Mining Ltd., awarded the engineering, procurement, and construction contract for its Camino Rojo project in Zacatecas. Orla expects to begin the detailed engineering work by mid-September to build a mine that begins to produce Au in mid-2021. Au production is expected to average 97K Oz Au per year at an estimated AISC of USD $576 per Oz Au. Orla submitted permits applications to SEMARNAT for the MIA and change of land use at the end of August. The legislated timelines for the review of properly prepared MIA and change of land use applications and mine operating permits for a project that does not affect federally protected biospheres or ecological reserves are 120 working days and 105 working days, respectively, which can be completed concurrently.
  • US Antimony Corporation, announced progress on its Au-Ag Los Juarez project in Queretaro. It completed the installation of the ponder liner in the 2 hectares tailings pond and the deepening of the water well to 222m to provide more than 240 gallons per minute. “The pond and the well will be more than adequate to ramp production from 100 tons per day to 400 tons per day. Projects remaining include fencing the pond, completion of the laboratory for fire assaying precious metals, and atomic adsorption equipment for assaying Sb, Ag, and Au in the leach circuit. The mil fine ore bin has been filled with crushed ore from the mine. Initial testing could start within 30 to 60 days.
  • Oroco Resource Corp., filed a geological technical report regarding its Santo Tomas project in Sinaloa. “The report summarizes a data set now controlled by the company that comprises 90 historical drill holes totaling 21,075 m, and recommends a significant program of phased surface exploration, deep geophysical surveys, and diamond drilling that aims to verify and build upon a key new geological model and a substantial body of historical drilling, mineral resource estimates, and pre-feasibility studies. The Report provides the company with a current, technical foundation upon which to advance the Santo Tomás project by confirming the technical analysis of the mineralization on the property”.
  • Sonoro Metals Corp., reported that a program of 3D modelling, mapping and sampling is underway at its Cerro Caliche project in Sonora. It also launched a phase 3 drilling program to test the Veta de Oro, La Espanola, Cuervos and Guadalupe/Cabeza Blanca zones, where previous scout holes reported intervals of high-grade vein Au mineralization. “The program is a continuation of the company’s strategy of systematically exploring Cerro Caliche as it concurrently advances its proposed heap leach pilot operation (HLPO). Drilling to date continues to outline shallow, bulk tonnage Au mineralized zones with grades similar to operating heap leach mines in the region”.

ON DEALS AND CORPORATE ISSUES

  • Almaden Minerals Ltd., appointed its new VP Project Development to oversee detailed engineering and construction of its Ixtaca project in Puebla.
  • Golden Goliath Resources Ltd., granted 3M stock options to directors and officers, and 400K to employees and consultants. The incentive stock options are exercisable for a period of five years at a price of $0.10 (San Timoteo project, Chihuahua).
  • Golden Minerals Company, announced termination of sale agreement with Compañia Minera Autlan S.A.B. de C.V., regarding the sale of certain of its Mexican properties. The CEO of Golden informed that unfortunately they could not come to terms with Autlan and now they are in position to consider future options for the properties that were included in the Autlan agreement (Velardeña and Rodeo in Durango, and Santa Maria project in Chihuahua).
  • Millrock Resources Inc., completed the sale of five of their Mexican properties to Riverside Resources Inc. La Union, Los Cuarenta, El Pima, El Valle and Llano del Nogal, all located in Sonora state, were the mineral concessions sold to Riverside along with a copy of its exploration database and various exploration equipments and vehicles. Consideration paid to Millrock is $35K cash and 300K Riverside shares. Additionally, Riverside will grant a 0.5% NSR royalty on the El Pima and El Valle claims, and in the event that Riverside exercises the option on Santa Rosalia (Los Cuarenta project), it will grant a 0.5% NSR royalty on that claim to Millrock.

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, a fault-bx with Mn oxides in a prospect in Chihuahua, 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 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 August, 2019.

 

Diatreme breccia

By Miguel A Heredia

During the thirty three week of the year (August 12th to August 18th, 2019), at least 23 press releases were announced by companies working in Mexico, with six announcing financial rounds, five communicating production results, four reporting on resources and development of their projects, three disclosing deals and corporate issues, three informing on exploration results, and two commenting on Mexican issues.   ON MEXICO ISSUES, Mexican president, Andres Manuel Lopez Obrador, declared that current mining concessions won´t be cancelled but no new ones are going to be issued. Fresnillo plc led the 2018 Pb production in Mexico.  ON EXPLORATION, In Chihuahua, Kootenay released exploration drilling results from its Columba project. In Durango, Gainey advanced the drilling program at its Las Margaritas project. In Zacatecas, Galore provided an update of the drilling program performed at its Dos Santos project in Zacatecas. ON MINING, Americas Silver, Aura Minerals, Impact, Odyssey, and Sierra Metals reported production and financial results from their Mexican mining operations for the period Q2, 2019. ON FINANCING, Defiance, Galore, Impact, Kootenay, SilverCrest, Southern Silver, and Valterra announced financial rounds. ON RESOURCES AND DEVELOPMENT, Endeavour reported positive drilling and underground channel sampling results from its Parral project in Chihuahua. Minera Alamos announced commencement of phase 2 drilling at its Santana Au project in Sonora. Premier Gold provided an update of its ongoing drilling program at its Mercedes mine in Sonora. Mag Silver provided an update of mine development at its Juanicipio project in Zacatecas. ON DEALS AND CORPORATE ISSUES, Santacruz and its 50% owned subsidiary company Carrizal Mining entered into an agreement to extend the expiry date of the current Zimapan mine lease agreement located in Hidalgo state. Telson curtailed mining operations at its Campo Morado mine in Guerrero and plans to focus on construction of mine at its Tahuehueto Au project in Durango.  Discovery Metals granted stock options to certain officers, directors, employees, and consultants (Puerto Rico project, Coahuila).

 ON MEXICO ISSUES

  • Mexican president, Andres Manuel Lopez Obrador, declared that current mining concessions won´t be cancelled but no new ones are going to be issued. He said that concessions have not being held for production purposes but rather for financial speculation. He also asked mining companies to take care of the environment and pay salaries to the miners as in USA and Canada. Mining companies remain to be seen if his vow will translate into action since, until now, there is not a detailed legal and regulatory framework.
  • Fresnillo plc., led the 2018 Pb production in Mexico. Five companies produced approximately 73% of the 538.3M Lb Pb produced in 2018, with Fresnillo producing 22.1%, followed closely by Newmont-Goldcorp with 22%.

ON EXPLORATION

  • Kootenay Silver Inc., announced drill results of the six first holes drilled at its Columba Silver project in Chihuahua. Results have confirmed shallow-high grade Ag mineralization associated to quartz-calcite veins, breccias, and stockworks in five of the six holes. Widths range from 4.8m to 16.5m on the F Vein, and from 1.17 to 1.5m on unknown hanging wall veins in two of the holes. Significant intersections were encountered in hole CDH-19-01 with 93 g/t Ag over 16.5m, including 141 g/t Ag over 9.42m, and including 390 g/t Ag over 1m; hole CDH-19-02 with 104 g/t Ag over 14m and 213 g/t Ag and 0.31 g/t Au over 3.73m, including 328 g/t Ag over 1m, and 332 g/t Ag and 0.55 g/t Au over 0.70m; hole CDH-19-05 with 230 g/t Ag over 4.83m, including 518 g/t Ag over 2m, and including 775 g/t Ag over 1.15m; and hole CDH-19-06 with 133 g/t Ag over 10.45m before entering into a mine stope over 3m wide, including 287 g/t Ag over 1.45m. the hole CDH-19-06 also hit two hanging wall veins with 235 g/t Ag over 1.5m wide, and 267 g/t Ag over 0.87m wide. “Drilling thus far has tested approximately 450 meters of strike in broad spaced fences of holes from depths as shallow as 20 meters to as deep as 150 meters with 5 of 6 holes intercepting the F vein”.
  • Gainey Capital Corp., reported that is doing the last activities to prepare the infrastructure required to commence the drilling program at its Las Margaritas project in Durango. The focus now is on repair and constructs 39km of road to facilitate access to and between drill sites. The company will provide further updates as the drilling commences.
  • Galore Resources Inc., announced that it has completed four core holes for a total of 1,324m at El Alamo target within its Dos Santos project in Zacatecas. These four holes are part of a 2,500 drilling program. Samples from holes EA-001 and EA-002 were submitted to the lab and results are expected soon. Hole EA-003 was abandoned prior to reaching the target depth due to mechanical issues. “Drill holes have intersected more extensive zones of pyrite mineralization than anticipated, both fresh and oxidized. Pyrite and strongly oxidized zones, normally within brecciated limestone, are of particular interest based on previous sampling of the surface outcrops that were found to contain weakly anomalous gold values to high-grade gold values (high of 20g/t Au) from previous trench sampling”.

ON MINING

  • Americas Silver Corporation, reported revenue of $15M and net loss of $8M for the period Q2, 2019. Guidance for 2019 remains unchanged at 1.6-2.0M Oz Ag and 6.6-7.0M Oz AgEq at cash cost of $4.0 to $6.0 per Oz Ag and AISC of $10.0-12.0 per Oz Ag produced. The Company had a cash balance of $6.3M as at June 30, 2019.
  • Aura Minerals Inc., announced revenue of USD $50,374,000 for the period Q2, 2019, from which USD $16,828,000 correspond to Cu revenue from its Aranzazu mine in Zacatecas. Total cost of production at Aranzazu was USD $12,915,000, depletion and amortization of USD $1,618,000, gross margin of USD $2,295,000. The company had other expenses for the amount of USD $1,872,000, for a resulting income before taxes of USD $423K.
  • Impact Silver Corp., presented Q2, 2019 production and financial results from its Zacualpan mining district in Mexico State. Impact milled 33,616 tonnes of 160 g/t Ag to produce 145.6K Oz Ag. The company reported revenues of $2.8M.
  • Odyssey Marine Exploration, announced financial results for Q2, 2019. Odyssey reported a net loss of $2.8M and total revenue of $0.8M (Bay of Ulloa phosphate project, Baja California Sur).
  • Sierra Metals Inc., reported Q2, 2019 consolidated production and financial results from their Mexican and Peru operations. The company produced 9.7M Lb Cu, 0.8M Oz Ag, 16.6M Lb Zn, 8.1m Lb Pb, and 2,540 Oz Au. Cash cost per Lb CuEq payable Lb was USD $1.51 and an AISC of USD $2.55, while at its Cusi mine, the cash cost per Oz AgEq produced was USD $16.49 and an AISC of USD $25.67. Sierra Metals announced an adjusted EBIDTA of USD $126M, and an operating cash flow of USD $12.8M.

ON FINANCING

  •  Defiance Silver Corp., closed a non-brokered private placement in the amount of $3,323,106. Gross proceeds will be used to continue an aggressive exploration program at its San Acacio Silver project in Zacatecas. It exploration program will be focused on drilling the new Ag shoots along the Veta Grande vein, the recently defined Ag-Cu geophysical anomaly, and further resource expansion.
  • Galore Resources Inc., announced that is continuing its effort to implement a non-brokered private placement to raise up to USD $1.5M. Net proceeds of the non-brokered private placement will be used for continued drilling of the El Alamo claim, drilling at the Los Gemelos claim (Dos Santos project in Zacatecas) and for general working capital.
  • Impact Silver Corp., completed its second series of the third and final tranche of a non-brokered private placement for gross proceeds of $554.2K. Net proceeds will be used for greenfield exploration on its large ground package in Zacualpan Silver mining district, Mexico State, and projects such as San Ramon Deep extension, Manto America, and Santa Teresa.
  • Kootenay Silver Inc., announced a non-brokered private placement for gross proceeds of $5M. Net proceeds of the private placement will be used to advance exploration of the Columba Ag project in Chihuahua, potentially adding a further drill rig to expedite the current drill program, and to fund further work at Copalito, Sinaloa, La Cigarra, Chihuahua, and other projects as well as for general working capital purposes.
  • SilverCrest Metals Inc., completed its prospectus offering for gross proceeds of $25.3M. The company also announced that SSR Mining Inc., purchase SilverCrest stock in a separate non-brokered private placement for gross proceeds of CAD $4.6M. The company plans to use the net proceeds to continue exploration and advancement of its Las Chispas project in Sonora to feasibility level, and for working capital purposes.
  • Southern Silver Exploration Corp., closed the first tranche of a non-brokered private placement for gross proceeds of $3.1M. At final closing, due to increased interest in the offering, the company plans to close on an oversubscribed amount to a maximum of 22.5M units for gross proceeds of $4.5M. Net proceeds will be used to continue the 2019-20 exploration programs on its Cerro Las Minitas project in Durango.
  • Valterra Resource Corporation, extended 30 days the closing of its equity financing. The offering is for $375K with an over-allotment option to increase it by up to 10%. Net proceeds from the private placement may be used in part to fund costs associated with initial exploration programs for the Los Reyes Au-Cu project in Chihuahua.

 ON RESOURCES AND DEVELOPMENT

  •  Endeavour Silver Corp., reported positive exploration drilling results from its Parral project in Chihuahua. The company completed 15 surface and underground drill holes totaling 3,160m, and 462 underground channel samples in 3 blocks in the Sierra Plata mine on the Veta Colorada vein system. Significant drill intersections are in hole VCS-02 with 346 g/t Ag over 9.6m true width (TW), including 784 g/t Ag over 0.50m TW in the hanging wall of Veta Colorada, and 283 g/t Ag over 5m TW, including 975 g/t Ag over 0.5m TW in Veta Colorada; hole VCU-03 with 326 g/t Ag over 8.2m TW, including 727 g/t Ag over 0.3m TW in Veta Colorada; hole VCU-04 with 253 g/t Ag over 7.7m TW, including 1,200 g/t Ag over 0.4m TW; and hole VCU-05 with 332 g/t Ag over 13.1m TW, including 3,770 g/t Ag over 0.2m TW. Channel sampling highlights include 2 samples exceeding 1,000 g/t Ag such as 1,705 g/t Ag over 0.55m TW, and 1,480 g/t Ag over 0.95m TW. The rest of the sampling results vary between 509 and 911 g/t Ag in widths ranging from 0.3 and 1.50m. The full width of the vein is not exposed so the sampling is partially indicative of the Ag mineralization.
  • Minera Alamos Inc., announced the commencement of phase 2 drilling at its Santana Au project in Sonora. The goal is to expand resources at the main Nicho deposit as well as follow-up drilling on several new discoveries made during Phase 1 work in late 2018.
  • Premier Gold Mines Limited., provided and update of its ongoing drilling program at its Mercedes mine in Sonora. The company has confirmed two high-grade zones: the Lupita extension, and the newly discovered San Martin target area. Significant drill interceptions were encountered in hole L19-422D at the San Martin area with 14.02 g/t Au and 136 g/t Ag over 2.9m; hole L19-414D at the Lupita area with 8.41 g/t Au and 68 g/t Ag over 3.9m, including 16.2 g/t Au and 92 g/t Ag over 1.4m; hole L19-414D with 4.57 g/t Au and 27 g/t Ag over 4.5m; and hole UG-RDO19-40 at Rey de Oro area with 18.15 g/t Au and 27 g/t Ag over 2.3m.
  • Mag Silver Corp., and its JV partner Fresnillo plc, provided and update of mine development at its Juanicipio project in Zacatecas. The company reported that underground development continues and is now approaching 22km to date, “with the current emphasis on: developing the three internal spiral footwall ramps at depth along the full strike length of the Valdecañas Vein system; constructing the underground crushing chamber; advancing the conveyor ramp from both ends to and from the planned mill site (with the box cut for the underground conveyor exit portal now complete); integrating additional ventilation and other associated underground infrastructure, and starting of the internal shaft sinking (head chamber for the shaft has been excavated and winding equipment ordered)”. Progress at Juanicipio has been rapid with multiple engineering milestones delivered, and construction on track for H2, 2020 commissioning target according to the operator Fresnillo. The mill-site preparation is underway and the construction of surface infrastructure facilities continues.

 ON DEALS AND CORPORATE ISSUES

  •  Santacruz Silver Mining Ltd., and its 50% subsidiary company Carrizal Mining S.A. de C.V., entered into an agreement with Minera Cedros S.A. de C.V., (a wholly-own subsidiary of Grupo Peñoles, S.A.B. de C.V.), to extend the expiry date of the Zimapan mine lease agreement, located in Hidalgo state. “Carrizal must make monthly payments to Minera Cedros based on 4% NSR from the concentrates produced by the Zimapan mine for each respective month, subject to the minimum payment each month being USD $45K and the maximum payment being USD $60K”.
  • Telson Mining Corporation, curtailed indefinitely mining operations at its Campo Morado mine in Guerrero and placed the mine into care and maintenance. The decision was taken since the company is concerned about certain activities in the vicinity of Campo Morado that put at risk the health and welfare of its workforce. The company plans to focus on construction of mine at its Tahuehueto Au project in Durango.
  • Discovery Metals Corp., granted stock options to certain officers, directors, employees, and consultants (Puerto Rico project, Coahuila).

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

On the picture above, a diatreme breccia in a prospect in Durango, Mexico.  Photo by Miguel A Heredia.