Concesiones Mineras

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

/ Gambusino Prospector / Leave a comment

By Jorge Cirett                                             

During the 26th week of the year (June24th to June 30th, 2024), companies working in Mexico posted at least 30 press releases. Three companies informed on exploration advances on their properties, while one other informed a second rig has been added to its drilling program. A company announced a new non-brokered private placement, one other cancelled the previously announced non-brokered private placement, one more granted stock options, an additional one began trading on the Lima stock Exchange and one other settled on shares for debt. Five companies released drilling results from their advanced properties, and one more on an underground bulk sampling program. One company announced the termination of the share purchase agreement to acquire another company. One other company is to resume trading, five more held their AGMs, three companies (yes, three) informed on arbitration processes against Mexico, one company announced an appointment, and one more announced the authorization by shareholders to proceed on the acquisition of the company by another enterprise. ON MEXICO ISSUES, three companies informed on arbitration processes against Mexico: Almadex Minerals, Almaden Minerals and Ganfeng Lithium. They are engrossing the ranks of mining/exploration companies seeking compensation for their failing investments in Mexico due to government action/inaction. Other companies in this position include Odyssey Marine Exploration, Vulcan Materials and Silver Bull Resources. ON EXPLORATION, In Sonora, Minaurum Gold is to complete a technical report on its Alamos project. In Chihuahua, Radius Gold announced the commencement of drilling at Plata Verde, Chihuahua, by its partner Fresnillo plc; Quetzal Copper mobilized field and drill crews to Cristina, in Chihuahua. Prismo Metals is to mobilize its drilling crew to Palos Verdes, in Sinaloa. ON MINING, Kootenay Silver added a second rig to the drill program at Columba, in Chihuahua. ON FINANCING, Quetzal Copper cancelled a $2 M financing. Vizsla Royalties announced a financing round of up to C$3.7 M. Bear Creek Mining granted stock options. Sierra Metals began trading on the Lima stock exchange. Silver Wolf completed a shares for debt transaction for 3.36 M shares. ON RESOURCES AND DEVELOPMENT, Silver Storm Mining (La Parrilla, Durango), Prime Mining (Los Reyes, Sinaloa), Orla Mining (Camino Rojo Sulphide Extension, Zacatecas), Vizsla Silver (Panuco, Sinaloa) and Torex Gold (El Limón, Guerrero) presented drilling results from their advanced/brownfield projects. GRSilver Mining presented bulk sampling test mining results from its Plomosas project in Sinaloa. ON DEALS AND CORPORATE ISSUES, GRSilver Mining announced the termination of the agreement to acquire Marlin Gold Mining, later on the week GRSilver and another Canadian company signed an agreement on the acquisition of all the shares of Marlin Gold held by GRSilver. Quetzal Copper has resumed trading on the TSX. Ganfeng Lithium, Almaden Minerals and Almadex Minerals presented arbitration claims against Mexico. Americas Gold and Silver, Almaden Minerals, Torex Gold, Sierra Metals and Aztec Minerals held their respective AGM’s. Vortex Metals announced the appointment of Paul Fürst to its board of directors. Argonaut Gold’s shareholders approved the acquisition of the company by Alamos Gold. ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUES

  • Three companies presented arbitration claims against Mexico during the week, with Ganfeng Lithium, Almaden Minerals, Almadex Minerals adding to the list of companies seeking compensation for their failing businesses in Mexico due to government action/inaction. This is the result of policies directed by the incumbent of the current federal government, with or without legal support. The mining industry is waiting to see the true colors of the elected president Claudia Sheinbaum once she assumes the presidency.

ON EXPLORATION

  • Minaurum Gold Inc. engaged Independent Mining Consultants Inc. to complete an initial mineral resource estimate at its Alamos silver project in Sonora. “The NI 43-101 compliant Mineral Resource Estimate will initially focus on the Europa and Promontorio silver veins. An IMC qualified person (QP) will be on site and commence work in July 2024.”
  • Radius Gold Inc. announced the commencement of drilling at its Plata Verde project in Chihuahua, in partnership with Fresnillo plc. The planned program comprises 2,000 m of drilling targeting bulk minable, underground silver resources at the historic Plata Verde mines. “Silver mineralization occurs as massive to crustiform banded barite calcite and quartz with silver chlorides, sulphosalt minerals and native silver infilling and cementing fractures and breccia within a basaltic/andesite extrusive volcanic. The basaltic/andesite host occurs at the base of the Upper Rhyolitic Volcanics of the Northern Sierra Madre”.
  • Quetzal Copper Corp. mobilized field and drill crews to site at the Cristinas project in Chihuahua. The 1,500 to 3,000 m program focus is to step down-dip from high-grade copper intercepts on the 2014 drill program. Also, two conductors identified in the 2022 electro-magnetic geophysical survey (EM) will be targeted. The company plans to do a follow up downhole EM survey after drilling, to obtain more detailed data on the extent and geometry of the Coatl vein and a hanging wall conductor.

ON MINING

  • Kootenay Silver Inc. announced a second rig has been added to the drill program underway at its Columba project in Chihuahua. Current drilling is focused on extending the limits of the “D-Vein” and the second rig is to test the southeast extensions of the “B-Vein” and the “B2-Vein”, prioritizing where these trends intersect. “Prospective veins on the project are hosted within a volcanic caldera setting, the surface extent of mapped veins measuring roughly 4 kilometres by 3 kilometres. Management believes that Columba may be a newly recognized vein district that is nearly entirely preserved from erosion.”

ON FINANCING

  • Quetzal Copper Corp. cancelled the previously announced $2 M non-brokered private placement (Cuatro Hermanos, Sonora).
  • Bear Creek Mining Corp. granted to certain directors, officers and employees of Bear Creek a cumulative total of 1.36 M stock options and a cumulative of 1.62 M restricted share units (Mercedes, Sonora).
  • Vizsla Royalties Corp. announced a non-brokered private placement for gross proceeds of up to C$3.7 M (NSR on Panuco, Sinaloa).
  • Sierra Metals Inc. informed its shares began trading on June 28, 2024, on the Bolsa de Valores de Lima (Bolivar, Chihuahua).
  • Silver Wolf Exploration Ltd. announced the completion of the shares for debt transaction with two of its principal creditors, Oniva International Services Corp., a private company controlled by the company’s CEO, which provides administrative services, and Avino Silver & Gold Mines Ltd. Silver Wolf has issued 1.07 M common shares to Oniva and 2.29 M common shares to Avino. As result, Oniva and CEO David Wolfin now hold approximately 24.70% of the total issued and outstanding shares of Silver Wolf (Ana María, Durango).

ON RESOURCES AND DEVELOPMENT

  • Silver Storm Mining Ltd. announced further diamond drill results from the San Marcos area at the La Parrilla mine complex in Durango. Highlighted core length results comprise 3.50 m @ 147 gpt Ag, 0.07 gpt Au, 0.4% Pb, 0.3% Zn; 1.00 m @ 369 gpt Ag, 0.02 gpt Au, 0.1% Pb, 0.4% Zn; 19.03 m @ 183 gpt Ag, 0.60 gpt Au, 0.4% Pb, 0.2% Zn (including 2.63 m @ 142 gpt Ag, 2.45 gpt Au, 0.5% Pb, 0.5% Zn and 5.14 m @ 449 gpt Ag, 0.37 gpt Au, 0.7% Pb, 0.2% Zn); 2.13 m @ 370 gpt Ag, 0.24 gpt Au, 1.1% Pb, 0.2% Zn; 11.75 m @ 210 gpt Ag, 0.65 gpt Au, 1.7% Pb, 0.4% Zn (including 2.00 m @ 374 gpt Ag, 0.83 gpt Au, 4.3% Pb, 0.5% Zn); 0.49 m @ 489 gpt Ag, 0.16 gpt Au, 1.4% Pb, 3.8% Zn; 1.00 m @ 204 gpt Ag; 3.25 m @ 125 gpt Ag, 0.38 gpt Au, 0.9% Pb, 0.4% Zn; 1.00 m @ 392 gpt Ag, 0.14 gpt Au, 1.1% Pb, 0.2% Zn. “The San Marcos Zone is comprised of quartz-carbonate vein mineralization ….. hosted within a fault zone marking the eastern contact of the granodiorite stock. It has a known strike length of 650 m with mineralization extending vertically for 450, and a thickness of up to 17 m”. Current results extend mineralization 100 m below the deepest workings on the San Marcos area.
  • Prime Mining Corp. reported expansion drilling results from 15 holes on the Z-T area of its Los Reyes project in Sinaloa. Highlighted true width results comprise 2.9 m @ 6.64 gpt Au, 22 gpt Ag (including 1.0 m @ 18.90 gpt Au, 20 gpt Ag); 1.0 m @ 1.33 gpt Au, 5 gpt Ag; 14.2 m @ 1.00 gpt Au, 40 gpt Ag (including 2.4 m @ 2.60 gpt Au, 134 gpt Ag); 4.0 m @ 1.11 gpt Au, 16 gpt Ag; 7.9 m @ 0.46 gpt Au, 27 gpt Ag; 10.7 m @ 1.21 gpt Au, 20 gpt Ag (including 0.8 m @ 6.80 gpt Au, 37 gpt Ag). These results confirm mineralization continues 425 m downdip from the current programmed pit bottom and 275 m along strike.
  • Orla Mining Ltd. updated on exploration activities from the first half of 2024 at the Camino Rojo Sulphide Extension project in Zacatecas. Included are the results of 13,500 m of drilling in 19 holes, as part of the 30,000 m drill program for 2024. Metallurgical testing on core from the drill program showed 86% Au recovery on bottle roll test, 84% Au on rougher flotation, while open-circuit Zn cleaner tests returned 94% Zn recoveries. Highlighted core length intervals comprise 15.0 m @ 2.40 gpt Au, 9 gpt Ag, 0.4% Zn; 9.75 m @ 3.49 gpt Au, 8 gpt Ag, 1.1% Zn (including 1.50 m @ 16.6 gpt Au, 31 gpt Ag, 5.6% Zn); 13.5 m @ 2.38 gpt Au, 12 gpt Ag, 0.8% Zn (including 1.00 m @ 13.1 gpt Au, 11 gpt Ag, 0.2% Zn, 0.11% Cu); 23.4 m @ 1.86 gpt Au, 15 gpt Ag, 0.28% Cu; 7.25 m @ 3.67 gpt Au, 4 gpt Ag, 6.9% Zn; 0.85 m @ 45.4 gpt Au, 55 gpt Ag, 0.9% Zn, 0.9% Pb; 17.2 m @ 3.25 gpt Au, 9 gpt Ag, 0.1% Zn, 0.16% Cu; 15.0 m @ 4.57 gpt Au, 19 gpt Ag, 2.6% Zn (including 0.75 m @ 51.1 gpt Au, 44 gpt Ag, 8.1% Zn, 0.16% Cu); 12.4 m @ 3.15 gpt Au, 5 gpt Ag, 0.2% Zn (including 0.60 m @ 50.0 gpt Au, 3 gpt Ag); 6.60 m @ 6.72 gpt Au, 8 gpt Ag, 0.8% Zn (including 0.45 m @ 78.6 gpt Au, 51 gpt Ag, 8.2% Zn, 0.10% Cu. “The drill results indicate potential expansion of the Camino Rojo Sulphide resource at depth, extending beyond the current mineral resource down plunge by 500 metres and down dip by 300 metres. This high-grade polymetallic (Au-Ag-Zn) semi-massive to massive replacement style mineralization remains open at depth.”
  • Vizsla Silver Corp. reported infill drilling results from five core holes on the Copala resource area at its Panuco project in Sinaloa. Mineralization has been traced for 1,770 m along strike and 400 m down dip on the Copala structure, which holds 83.3 M Oz AgEq in indicated resources at 573 gpt AgEq and inferred resources of 48.3 M Oz AgEq at 476 gpt AgEq. “The infill holes reported herein are part of an ongoing ~10,000 program (~35 holes), planned to convert near surface Indicated Mineral Resources in the central portion of main Copala into the Measured Resource category.” Highlighted true width intercepts comprise 4.20 m @ 103.20 gpt Au, 1,694 gpt Ag (including 0.64 m @ 663.00 gpt Au, 9,920 gpt Ag); 3.10 m @ 3.33 gpt Au, 682 gpt Ag; 10.90 m @ 2.80 gpt Au, 762 gpt Ag (including 1.47 m @ 13.58 gpt Au, 3,805 gpt Ag); 10.50 m @ 5.27 gpt Au, 804 gpt Ag (including 1,47 m @ 24.87 gpt Au, 3,437 gpt Ag).
  • GRSilver Mining Ltd. announced that it has advanced underground development and bulk sampling test mining at the San Juan area of its Plomosas project in Sinaloa. To date 280 m of underground development have been completed, 15,170 tonnes of test material processed, resulting on 235 tonnes of Ag-Au-Pb concentrate produced with 60-75% Au, 84-92% Ag recoveries. Channel sample results from the San Juan bulk sampling area returned 1.3 m @ 0.29 gpt Au, 160 gpt Ag, 0.4% Pb, 0.4% Zn; 0.7 m @ 0.50 gpt Au, 499 gpt Ag, 1.1% Pb, 1.4% Zn; 0.5 m @ 0.29 gpt Au, 338 gpt Ag, 0.7% Pb, 0.7% Zn; 1.0 m @ 0.33 gpt Au, 1,095 gpt Ag, 1.12% Pb, 3.2% Zn; 2.0 m @ 0.33 gpt Au, 133 gpt Ag, 0.1% Pb, 0.2% Zn; 1.0 m @ 0.10 gpt Au, 372 gpt Ag, 0.5% Pb, 2.3% Zn; 1.0 m @ 1.69 gpt Au, 927 gpt Ag, 6.3% Pb, 5.6% Zn; 1.0 m @ 0.74 gpt Au, 768 gpt Ag, 2.3% Pb, 2.2% Zn; 1.2 m @ 0.98 gpt Au, 465 gpt Ag, 8.1% Pb, 10.4% Zn; 1.5 m @ 0.96 gpt Au, 160 gpt Ag, 1.2% Pb, 5.5% Zn; 2.5 m @ 14.13 gpt Au, 1,624 gpt Ag, 0.2% Zn.
  • Torex Gold Resources Inc. released assay results from the ongoing drill program at El Limón Guajes Underground project at its Morelos Complex in Guerrero. The results are part of the expansion drilling at the El Limón Sur, El Limón Deep and Subsill trends “demonstrating the potential to grow mineral resources, extend high-grade mineralization, and support extending the reserve life of ELG Underground beyond 2028.” Highlighted core length results comprise 7.68 m @ 9.61 gpt Au, 12 gpt Ag, 0.31% Cu; 3.12 m @ 5.89 gpt Au, 51 gpt Ag, 2.58% Cu; 15.71 m @ 2.30 gpt Au, 61 gpt Ag, 2.16% Cu; 12.15 m @ 2.81 gpt Au, 56 gpt Ag, 2.28% Cu; 17.95 m @ 7.42 gpt Au, 2 gpt Ag at El Limón Sur Trend, 5.43 m @ 12.02 gpt Au, 24 gpt Ag, 1.22% Cu; 15.25 m @ 6.74 gpt Au, 34 gpt Ag, 2.48% Cu; 4.19 m @ 3.01 gpt Au, 4 gpt Ag, 0.27% Cu; 3.80 m @ 4.76 gpt Au, 6 gpt Ag, 0.36% Cu; 2.89 m @ 4.48 gpt Au, 5 gpt Ag; 5.28 m @ 5.67 gpt Au, 9 gpt Ag 0.19% Cu at El Limón Deep Trend and 5.00 m @ 11.75 gpt Au, 3 gpt Ag; 8.52 m @ 19.79 gpt Au, 2 gpt Ag; 3.09 m @ 4.04 gpt Au, 6 gpt Ag, 0.22% Cu at the Subsill Trend.

ON DEALS AND CORPORATE ISSUES

  • GRSilver Mining Ltd. announced on June 24, 2024 the termination of the share purchase agreement to acquire Marlin Gold Mining Ltd., as the closing was not completed by the closing deadline. GR Silver is to focus on resource growth and potential development of the Plomosas project in Sinaloa, “including the San Marcial, Plomosas Mine, and San Juan Areas. The Company retains its interest in a total of 734 km2 of concessions in the prolific Rosario District in Sinaloa, Mexico, including the former La Trinidad oxide gold mine”. Later on the week, the company and a private, arm´s length Canadian company active in Mexico (“PrivateCo”) informed the signing of a definitive and binding share purchase agreement under which PrivateCo will acquire 100% of the issued and outstanding shares of Marlin Gold Mining Ltd. from GRSilver Mining. Accordingly, GRSilver Mining will transfer to PrivateCo all existing assets, rights, covenants, indemnities and obligations to PrivateCo, in consideration for which GRSilver Mining will receive 0.5% NSR royalty and a 10-year first right of refusal on any disposition of other concessions by PrivateCo.
  • Quetzal Copper Corp. will resume trading at the TSX on June 26, 2024 (Cuatro Hermanos, Sonora).
  • Ganfeng Lithium Group. presented an arbitration claim against the Mexican government on the cancellation of nine key mining concessions at its Sonora Lithium project in Sonora.
  • Americas Gold and Silver Corp. held its annual general meeting (AGM) on June 25, 2024 (Cosalá, Sinaloa).
  • Almaden Minerals Ltd. held its annual general meeting (AGM) on June 26, 2024 (Ixtaca, Puebla).
  • Torex Gold Resources Inc. held its annual general meeting (AGM) on June 26, 2024 (Morelos Complex, Guerrero).
  • Almadex Minerals Ltd. provided an update on the international arbitration proceedings against Mexico under the comprehensive and progressive Agreement for Trans-Pacific partnership (CPTPP). Almadex Minerals and Almaden Minerals (and subsidiaries) have entered into a litigation management agreement to streamline the management of the arbitration proceedings. “Almaden will bear the up-front costs of the arbitration and provide overall direction to the arbitration process for itself and its subsidiaries, as well as Almadex and its subsidiaries, with certain limitations. Almadex will remain a party to the arbitration and continue in its cooperation and support of the process …. Almadex also reports that it has agreed with Almaden to extend the maturity of the gold loan (see press release of May 14, 2019) from March 31, 2026 to the earlier of March 31, 2030 or the receipt by Almaden or its subsidiary of any amount relating to its legal claims against Mexico” (NSR on Ixtaca, Puebla).
  • Almaden Minerals Ltd. confirmed non-recourse litigation funding in the amount of up to US$9.5 M to pursue its international arbitration proceedings against Mexico under the comprehensive and progressive Agreement for Trans-Pacific partnership (CPTPP). Almaden signed a litigation funding agreement with a leading legal finance provider. “The facility is available for immediate draw down for Almaden to pursue damages against Mexico under the CPTPP resulting from Mexico’s actions which blocked the development of the Ixtaca project and ultimately retroactively terminated the Company’s mineral concessions, causing the loss of the Company’s investments in Mexico.” Almaden entered into litigation management agreement with Almadex Minerals Ltd. to streamline the management of the arbitration proceedings.
  • Vortex Metals Inc. announced the appointment of “Banco de Chile Director and distinguished businessman Mr. Paul Fürst to its Board of Directors. Mr. Fürst is also a principal in Windows Minerals, Vortex Metals Optionor on the Chilean Illapel Copper Project.” (Riqueza Marina, Oaxaca).
  • Sierra Metals Inc. held its annual general meeting (AGM) on June 25, 2024. Miguel Aramburu was appointed as chair of the board of directors of the company. On a further press release was announced the appointment of Jean Pierre Fort to the position of Chief Financial Officer and the retirement from the company of the previous CFO Jose Fernandez-Baca (Bolivar, Chihuahua).
  • Aztec Minerals Corp. announced that all matters submitted to shareholders were approved the majority of votes cast at the annual general and special meeting of shareholders held on June 26, 2024 (Cervantes, Sonora).
  • Argonaut Gold Inc. announced that shareholders approved a special resolution authorizing a plan of arrangement pursuant to which Alamos Gold Inc. will acquire all of the issued and outstanding common shares of Argonaut at the annual general meeting held on June 28, 2024 (La Colorada, Sonora).  

ON SOCIAL RESPONSIBILITY

  • No Relevant News.

On the image below: Quartz veinlet with chloritization halo in mafic intrusive rock HQ core from a project in the Sonoran Desert. Picture by Jorge Cirett

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

/ Gambusino Prospector / Leave a comment

By Jorge Cirett

During the 22nd week of the year (May 27th to June 2nd,2024), companies working in Mexico posted at least 29 press releases. One company informed of drilling on its property and six companies released financial results for Q1 2024. Two companies announced the opening/closing of financing rounds for C$10.28 M and one filed a prospectus to raise up to US$250 M. Two companies informed on drilling results from their advanced projects, one on the approval of key mining permits, another on an updated technical report and one more a clarification on a previous news release. Two companies reported on held AGM’s, another one on the date for a merger-voting AGM, one on plans for a copper spinout, one on an annual report and one more on a board member retirement. ON MEXICO ISSUES, presidential polls in Mexico are to define a centralized power government or a checks and balances political system. The mining industry will be strongly affected if the officialism candidate wins. Nearshoring and EV’s present an opportunity to copper producing Sonora. The New Mining Law has stalled the investment of more than US$4.5 billion in the country. ON EXPLORATION, In Sonora, Tocvan Ventures informed on drilling progress at Pilar. ON MINING, Impact Silver, Orogen Royalties, Bear Creek Mining, Minera Alamos, Santacruz Silver Mining and Luca Mining presented financial/operational results for Q1 2024. ON FINANCING, Impact Silver increased again its non-brokered private placement to C$10.2 M, Sailfish and Alamos Gold declared quarterly dividends. Inomin raised $80 K on the first tranche of financing. Mag Silver filed the base shelf prospectus to raise up to C$250 M in 25 months. ON RESOURCES AND DEVELOPMENT, Silver Storm and Prime Minig released drilling results from La Parrilla, in Durango, and Los Reyes, in Sinaloa, respectively. ON DEALS AND CORPORATE ISSUES, Argonaut Gold is to held a special meeting of shareholders to vote on the merger with Alamos Gold. First Majestic Silver released its 2023 annual report. Avino Silver and Guanajuato Silver released AGMS’s results. Minera Alamos informed on its purpose to create a copper developer/producer spinout in Central Sonora. Capstone Copper announced the retirement of Bob Gallagher. ON SOCIAL RESPONSIBILITY, First Majestic Silver and Fortuna Silver Mines published their 2023 ESG reports.

ON MEXICO ISSUES

  • This Sunday June 2nd presidential polls are to be held in Mexico, same that will define the bearing the country is to follow in the next six years and probably beyond that. At stake are the centralized government system with unrestricted power to the presidency sought by the current incumbent Andres Manuel Lopez Obrador, and the checks and balances system between the different government branches (executive, legislative and judicial) sought by the coalition opposition parties. Besides the obvious influence on the economy, if the officialism party´s Claudia Sheinbaum candidate wins, expect a tight grip on the mining industry from the open supporter of socialist economies, like Cuba and Venezuela.
  • Nearshoring and electrical vehicles present an opportunity for copper producing Sonora, according to David Ramos Félix, president of the local AIMMGM chapter in the State that produces more than 70% of the red metal in the country
  • Restrictions brought by the new Mining Law approved by Fast Track procedures in May of 2023 have delayed the investment of more than US$4.5 billion, according to Karen Flores, president of the Cámara Minera de México (CAMIMEX). The freezing of at least 220 environmental permits is hindering the investments that could generate employment to close to 50 thousand families, with salaries in the metallic mining sector that are 85% above the national average.

ON EXPLORATION

  • Tocvan Ventures Corp. informed 2,200 m have been completed on the reverse circulation (RC) drill program at its Pilar property in Sonora. Results for nine holes have been released so far.

ON MINING

  • Impact Silver Corp. announced financial and operating results for Q1 2024. The company reported revenue of $4.3 M from the Guadalupe mine in Estado de Mexico and $1 M from the start-up operations at Plomosas in Chihuahua. There was a net loss during the period of $3.1 M, primarily on upgrading facilities at the Plomosas mine. At the Zacualpan/Guadalupe mine in Estado de Mexico 31.7 K tonnes were milled @ 161 gpt AgEq. The Plomosas mine continued gradual start-up of operations, processing 3.6 K tonnes @ 15.3% Zn. The mine is expected to reach design capacity of 200 tpd later in 2024.
  • Orogen Royalties Inc. reported Q1 results, including $1.48 M in royalty revenue generated from First Majestic’s Ermitaño mine in Sonora, representing 508 Oz AuEq. “During the current quarter, the mill processed 224,394 tonnes of ore compared to 233,601 tonnes processed last quarter. Average silver and gold head grades during the current quarter were 72 grams per tonne (“g/t”) and 3.16 g/t, respectively, compared to average silver and gold head grades of 106 g/t and 3.88 g/t, respectively, of the previous quarter. Silver and gold recoveries averaged 69% and 95%, respectively, compared to recoveries of 73% and 96% from the previous quarter”.
  • Bear Creek Mining Corp. reported interim consolidated financial results for Q1 2024. During the period, 106.4 K tonnes were mined at the Mercedes mine in Sonora, averaging 3.83 gpt Au, 109.3 K tonnes milled averaging 3.69 gpt Au, recovering 94% Au to produce 12,228 Oz Au, 44 K Oz Ag at cash cost $1,183 per Oz Au and an AISC of $1,588 per Oz Au. Total revenue in the period was $27.5 K M. “Updates to estimates of mineral reserves and mineral resources are tentatively expected before year end, pending completion of the first phase of the exploration and infill drilling campaign”.
  • Minera Alamos Inc. provided select financial highlights from its Q1 2024 and an operational update for the first five months of the year. Updated plans call for 20 K Oz Au averaging 0.63 gpt Au and mined at a 1.6:1 ratio and staked over a 12-month period. Further stockpiled 4.5 K Oz Au @ 1.0 gpt Au are to be processed during the same period. Mining and stacking operations are expected to commence in June and continue through H2 2024 and H1 2025. Total gold recovered and sold during the first quarter was 907 Oz Au, with inventory on the leach pad of 5,383 Oz Au. Cash and cash equivalents at the end of the period was $11.8 M, with a positive working capital of $18.2 M.
  • Santacruz Silver Mining Ltd. reported its financial and operating results for the first quarter 2024, including figures from its operations in Mexico. At Zimapan, in Hidalgo, 205.4 K tonnes were processed @ 82 gpt Ag, 0.29% Cu, 0.83% Pb, 2.29% Zn, recovering 74% Ag, 43% Cu, 79% Pb, 77% Zn, to produce 399.9 K Oz Ag, 256 tonnes Cu, 1,352 tonnes Pb, 3,643 tonnes Zn. During the period the company had US$52.6 M in revenue, 463 K in gross profit, cash and cash equivalents of US$4 M and working capital of US$7.1 M.
  • Luca Mining Corp. announced financial results for Q1 2024. During the period the company produced 4,297 Oz Au, 207.5 K Oz Ag, 791 tonnes Cu, 661 tonnes Pb, 3,068 tonnes Zn. The company achieved its first positive operating earnings with C$4.8 M in operating income and C$7.3 M in net income. Cash flow was C$4 M, with an AISC of US$1,325 and US$1,690 per Oz AuEq, expected to decrease at Tahuehueto and Campo Morado respectively, as ramp up production continues with the completion of construction at the former and completion of the improvement project at the latter (Tahuehueto, Durango; Campo Morado, Guerrero).

ON FINANCING

  • Impact Silver Corp. is amending and increasing its previously announced non-brokered private placement from C$8.2 M to C$10.2 M (Plomosas, Chihuahua).
  • Sailfish Royalty Corp. declared the second quarterly dividend for 2024, in the amount of US$0.0125 per common share (Gavilanes, Durango).
  • Alamos Gold Inc. declared a quarterly dividend of US$0.025 per common share (Mulatos, Sonora).
  • Inomin Mines Inc. announced the closing of the first tranche of its non-brokered private placement for gross proceeds of $80K (La Gitana, Oaxaca).
  • Mag Silver Corp. obtained receipt for the final short form base shelf prospectus filed with the securities commissions in all Canada and filed a registration statement with the United States Securities and Exchange Commission (SEC). The final shelf prospectus and registration statement will allow the company to offer up to US$250 M in common shares during the 25-month period of validity (Juanicipio, Zacatecas).  

ON RESOURCES AND DEVELOPMENT

  • Silver Storm Mining Ltd. announced further results from 3,039 m in 23 holes of its diamond drill program at La Parrilla mine in Durango. The results are from the Rosario mine, underneath and in proximity to previously mined stopes. The Rosario zone is “characterized by a sulphide-bearing quartz-carbonate vein hosted within a fault zone that extend down dip for 900 m, with a strike length of 2 km and true widths of up to 14 m”. Highlighted core length results comprise 3.84 m @ 73 gpt Ag, 2.2% Pb, 5.4% Zn (including 1.19 m @ 0.15 gpt Au, 123 gpt Ag, 3.7% Pb, 11.3% Zn); 4.83 m @ 0.16 gpt Au, 113 gpt Ag, 0.2% Cu, 1.4% Pb, 0.7% Zn; 5.23 m @ 0.25 gpt Au, 70 gpt Ag, 1.6% Pb, 1.8% Zn; 2.50 m @ 0.64 gpt Au, 68 gpt Ag, 0.6% Pb; 4.54 m @ 176 gpt Ag, 0.2% Pb (including 1.97 m @ 0.09 gpt Au, 176 gpt Ag, 0.2% Pb); 0.35 m @ 842 gpt Ag, 0.94% Cu, 24.8% Pb, 10.1% Zn; 3.91 m @ 0.38 gpt Au, 501 gpt Ag, 1.2% Pb, 1.2% Zn; 3.52 m @ 0.11 gpt Au, 48 gpt Ag, 2.1% Pb, 2.4% Zn; 1.47 m @ 469 gpt Ag, 1.89% Cu, 5.0% Pb, 2.7% Zn; 5.9 m @ 225 gpt Ag, 0.9% Pb, 0.7% Zn; 3.20 m @ 0.47 gpt Au, 111 gpt Ag, 1.5% Pb, 2.0% Zn; 6.25 m @ 532 gpt Ag, 18.1% Pb, 5.4% Zn.
  • Prime Mining Corp. reported expansion drilling results from the Guadalupe East area at Los Reyes project, in Sinaloa. Highlighted true width intercepts comprise 3.5 m @ 2.67 gpt Au, 327 gpt Ag; 1.1 m @ 4.06 gpt Au, 664 gpt Ag; 0.3 m @ 6.88 gpt Au, 5 gpt Ag; 1.5 m @ 2.38 gpt Au, 419 gpt Ag; 1.0 m @ 3.71 gpt Au, 475 gpt Ag; 0.7 m @ 20.50 gpt Au, 2,620 gpt Ag; and core length intervals comprising 2.4 m @ 1.29 gpt Au, 180 gpt Ag (including 1.3 m @ 2.13 gpt Au, 302 gpt Ag). “The target of this drilling at Guadalupe East was high-grade antithetic veins stepping out to the west. Antithetic veins are footwall and hanging wall splays that intersect the main Estaca vein at Guadalupe East”.
  • Sierra Madre Gold and Silver Ltd. announced the approval by SEMARNAT (Environmental Agency) of the modifications to the existing operating permit for the Guitarra mine and mill complex in Estado de Mexico. The permit allows for dry stack tailings deposition at the active tailings facility site, construction of a tailings filter plant, paste backfill using tailings in the underground mine and 58 surface drilling pad locations.
  • Argonaut Gold Inc. filed an updated technical report for the San Agustin property in Durango, which commenced operations in 2017. Reports highlights include gold production of 89 K Oz Au from April 2024 to 2026 at cash cost US$1,702 per Oz Au and a pre-tax and after-tax net present value (5%) of US$30M.
  • Luca Mining Corp. issued a clarification on its May 21, 2024 news release regarding the high-grade gold mineralization over significant widths at the Tahuehueto mine in Durango. “The mineralization occurs in shoots branching off the main Creston vein at Underground Level 23. Creston is one is one of two main structures currently being mined. Regular geological mapping, as part of mining activities, and channel sampling at this level confirmed the presence of breccia ore shoots up to 20 meters wide”. Channel sampling of 494 channel samples on Level 23 average 3.30 gpt Au, 27 gpt Ag, 0.22% Cu, 0.8% Pb, 1.4% Zn,

ON DEALS AND CORPORATE ISSUES

  • Argonaut Gold Inc. has filed its management information circular for its annual general and special meeting of the holders of common shares to be held on June 28, 2024. At the meeting Argonaut Shareholders will be asked to vote on the statutory plan of arrangement under which Argonaut will become a wholly-owned subsidiary of Alamos Gold Inc. (La Colorada, Sonora).
  • First Majestic Silver Corp. released its 2023 Annual report titled “20 Years. The Silver Evolution”. The report covers the company’s “vision and mission, its values, its commitment to achieving its goals, and its 20-year evolution to becoming one of the world’s largest silver producers”.
  • Avino Silver & Gold Mines Ltd. reported voting results from its annual general meeting (AGM) held on May 30. 2024. The company also announced the retirement of Jasman Yee from the board of directors (Avino, Durango).
  • Guanajuato Silver Company Ltd. announced its 2024 annual general meeting (AGM) is to be held on June 28, 2024 (El Cubo, Guanajuato).
  • Minera Alamos Inc. informed its plans to advance the creation of a “separate copper developer/producer focused on low capital intensity copper development projects”. The company considers the combination of Los Verdes and Suaqui Verde projects allow for further consolidation of similar assets in the region.
  • Capstone Copper Corp. announced Mr. Robert Gallagher has retired from the board of the directors (Cozamin, Zacatecas).

ON SOCIAL RESPONSIBILITY

  • First Majestic Silver Corp. released its 2023 Sustainability Report summarizing the company’s environmental, social and governance (ESG). Highlighted in the report are the safety performance, diversity and inclusion, carbon reduction, community involvement, ESG recognition and community investments (San Dimas, Durango).
  • Fortuna Silver Mines Inc. published its sixth annual sustainability report detailing the company’s performance on key environmental, social and governance (ESG) indicators during 2023 (San Jose, Oaxaca).

On the image below: Potassic feldspar alteration on rim of dark veinlet on intrusive rock in HQ core (6.3 cm across) from a project in the Sonoran Desert. Picture by Jorge Cirett.

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

/ Gambusino Prospector / Leave a comment

By Jorge Cirett                                             

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

ON MEXICO ISSUES

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

ON EXPLORATION

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

ON MINING

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

ON FINANCING

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

ON RESOURCES AND DEVELOPMENT

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

ON DEALS AND CORPORATE ISSUES

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

ON SOCIAL RESPONSIBILITY

  • No Relevant News.

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

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

/ Gambusino Prospector / Leave a comment

By Jorge Cirett                                             

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

ON MEXICO ISSUES

  • No Relevant News.

ON EXPLORATION

  • No Relevant News.

ON MINING

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

ON FINANCING

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

ON RESOURCES AND DEVELOPMENT

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

ON DEALS AND CORPORATE ISSUES

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

ON SOCIAL RESPONSIBILITY

  • No Relevant News.

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

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

/ Gambusino Prospector / Leave a comment

By Jorge Cirett                                             

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

ON MEXICO ISSUES

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

ON EXPLORATION

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

ON MINING

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

ON FINANCING

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

ON RESOURCES AND DEVELOPMENT

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

ON DEALS AND CORPORATE ISSUES

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

ON SOCIAL RESPONSIBILITY

  • No Relevant News.

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

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

/ gambusinoprospectormexico / Leave a comment

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

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

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

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

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

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

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

/ Gambusino Prospector / Leave a comment

By Jorge Cirett                                             

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

ON MEXICO ISSUES

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

ON EXPLORATION

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

ON MINING

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

ON FINANCING

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

ON RESOURCES AND DEVELOPMENT

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

ON DEALS AND CORPORATE ISSUES

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

ON SOCIAL RESPONSIBILITY

  • No Relevant News.

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