The Mining and Exploration News in Mexico: Highlights on the Fourth Week of January, 2023.

By Miguel A Heredia

During the 4th week of the year (January 23rd to January 29th, 2023), at least 21 press releases were announced by companies working in Mexico and a couple of news published by the media. One company informed on project exploration work, four companies released Q4 2022 production reports, one company elaborated on its 2023 plans, one company announced a financing round, one other elaborated on its share consolidation process and one more cancelled a previously announced financing round. Seven companies reported on work at their advanced or operating properties, three organizations disclosed personnel appointments and one more on a deal about the sale of a tailings property. ON MEXICO ISSUES, Fortuna Silver provided an update on its San Jose mine environmental impact authorization.  ON EXPLORATION, In Sonora, Tocvan and its JV partner Colibri begun the preparation for an initial bulk sample at its Pilar property. ON MINING, Mag Silver, Fresnillo PLC, Santacruz Mining and Guanajuato Silver reported Q4 and full year 2022 production results. Avino provided its outlook for 2023.  ON FINANCING, Heliostar announced a non-brokered private placement of up to CAD $16.28M (Ana Paula project, Guerrero), Fabled Silver is to consolidate its shares on a 5 to 1 ratio, and Tarachi Gold cancelled its previously announced financing round. ON RESOURCES AND DEVELOPMENT, Silver Tiger released results from drilling at its El Tigre project in Sonora. GoGold presented drilling results from the Eagle and Main Deposits within its Los Ricos South project in Jalisco. Bendito Resources is to prepare a technical report on its Oposura project in Sonora. Gatos Silver updated on extension and resource definition drilling at its Cerro Los Gatos property in Chihuahua. Discovery Silver filed a PFS report on its Cordero project, in Chihuahua. Vizsla Silver updated the mineral resource estimate for its Panuco project in Sinaloa, with a significant increase. Endeavour Silver filed resource estimate updates on its Guanaceví and Bolañitos projects, in Durango and Guanajuato respectively. ON DEALS AND CORPORATE ISSUES, Discovery Silver announced the appointment of its new CEO and the promotion of Román Solis to VP Mexico (Congratulations Román!). Altaley announced the appointment of its new CFO (Tahuehueto project, Durango). Tarachi Gold is selling its Magistral project in Durango to Compañía Minera de Atocha. Vizsla Silver appointed Charles Funk as Lead Technical Advisor, and Michael Pettingeli was promoted to Senior VP (Panuco, Sinaloa). ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUES

  • Fortuna Silver Mines Inc., provided an update on its San Jose Mine´s environmental impact authorization. It informed that the Mexican Federal Administrative Court has granted a provisional injunction to Compañía Minera Cuzcatlán, Fortuna´s Mexican subsidiary, which allows the San Jose Mine to continue to operate under the terms of the 12-year environmental impact authorization (EIA). It is expected that the Court will decide on the grant of a permanent injunction, within the coming weeks, which would continue in effect until the Court has ruled on the revocation of the EIA.     

ON EXPLORATION

  • Tocvan Ventures Corp., and its JV partner Colibri Resource Corp., begun the preparation for an initial bulk sample at its Pilar property in Sonora. Over 1,000 tonnes of oxide-gold material will be extracted from select areas exposed at surface. This bulk sample will be prepared in February for processing by heap-leach method at a private mining operation less than 25km to the west of Pilar. “Data generated from the bulk sample will provide an understanding of the expected head-grades and recovery percentages of gold and will help optimize future onsite production facilities”.

ON MINING

  • Mag Silver Corp., reported Q4 and full year 2022 production results from its Juanicipio project in Zacatecas (56% / 44% Fresnillo PLC and Mag Silver Corp. respectively). The company processed 165,786 tonnes from underground and initial stopes at an average grade of 415 g/t Ag to produce 1.86M Oz Ag and 5,380 Oz Au, and 646,148 tonnes in the full year 2022 at an average grade of 520 g/t Ag to produce 9.25M Oz Ag and 22,252 Oz Au. “The associated lead and zinc production will be reported with MAG Silver’s year end filings”.
  • Avino Silver & Gold Mines Ltd., provided its outlook for 2023, and presented a summary of the major milestone achieved in 2022. Avino plans to process 700K-750K tonnes in the full year from both Avino Mine and La Preciosa stockpiles to produce between 2.8M and 3.2M Oz AgEq. The company estimated a total capital budget of USD $9-$11.5M and a Corporate budget of USD $0.5M (USD $9.5-$12M consolidated), of which USD $5-$6M will be Grow Capital, USD $1-$1.5M for Exploration & Evaluation, and USD $3-$4M for Sustaining Capital & Mine Development. The company also reported that “its internal estimate for production was between 2.2-2.4M Oz AgEq and capital expenditures for 2022 were expected to total between USD$7M and USD $9M, excluding the acquisition of La Preciosa. In addition, it included a drill program targeting areas and veins on the property, including the recommended drilling on the Oxide Tailings Project, the construction of the dry-stack tailings facility, and metallurgical projects to help improve recovery rates”.
  • Fresnillo PLC. released Q4 2022 production results. During the period 12.5 M Oz Ag, 167,969 Oz Au, 12,756 tonnes Pb, 23,060 tonnes Zn were produced, taking the yearly total to 53.7 M Oz Ag (including Silverstream), 635,926 Oz Au, 52,950 tonnes Pb, 99,153 tonnes Zn. At the Fresnillo mine in Zacatecas, 624.1 K tonnes were processed averaging 197 gpt Ag, 0.58 gpt Au, 1.0% Pb, 2.4% Zn to produce 3.6 M Oz Ag, 8,314 Oz Au, 5,609 tonnes Pb, 11,097 tonnes Zn during the quarter. At Saucito, in Zacatecas, 508.4 K tonnes were processed @ 208 gpt Ag, 1.39 gpt Au, 0.9% Pb, 1.6% Zn, to produce 3.03 M Oz Ag, 18,076 Oz Au, 3,859 tonnes Pb, 5,868 tonnes Zn. At the Pyrites Plant in Zacatecas, 32.2 K tonnes were processed @ 145 gpt Ag, 1.19 gpt Au, to produce 111 K Oz Ag, 374 Oz Au. At Cienega, in Durango, 256.9 K tonnes were processed @ 1.20 gpt Au, 139 gpt Ag, 0.56% Pb, 0.94 % Zn, to produce 9,122 Oz Au, 0.98 M Oz Ag, 930 tonnes Pb, 1,372 tonnes Zn. At San Julián in Chihuahua, production during the quarter was 11,907 Oz Au, 3.11 M Oz Ag. At Herradura in Sonora 27.44 M tonnes were hauled, 7.08 M tonnes processed @ 0.71 gpt Au, 1.35 gpt Ag, to produce 103,826 Oz Au, 191 K Oz Ag. At Noche Buena in Sonora 7.3 M tonnes were hauled, 1.23 M tonnes processed averaging 0.51 gpt Au, 0.21 gpt Ag, to produce 13,331 Oz Au, 3 K Oz Ag. Attributable production (56% Fresnillo / 44% Mag Silver) from Juanicipio in Zacatecas was 1.04 M Oz Ag, 3,020 Oz Au during the quarter. The company aims to have a gold production ranging between 590 K and 640 K Oz Au in 2023.
  • Santacruz Silver Mining Ltd. reported Q4 and full year production, including figures from its Mexican operations. At Zimapan, in Hidalgo, 215 K tonnes averaging 71 gpt Ag, 2.19% Zn, 0.63% Pb, 0.40% Cu were processed, recovering 61.5% Ag, to produce 301.2 K Oz Ag, 3,098 tonnes Zn, 1,036 tonnes Pb, 569 tonnes Cu during the quarter. For the year, 822.1 K tonnes were processed @ 73 gpt Ag, 2.13% Zn, 0.65% Pb, 0.37% Cu, recovering 67.3% Ag to produce 1.29 M Oz Ag, 12,577 tonnes Zn, 4,450 tonnes Pb, 2,165 tonnes Cu. At Zimapan “Q4 has seen the purchase and installation of a replacement secondary crusher, commissioning of a zinc flotation column, and installation of additional concentrate filtration capacity. A Metallurgical testing program is underway to address new mineralized zones being mined, and to maximize recoveries”.
  • Guanajuato Silver Company Ltd. announced consolidated production results for the fourth quarter 2022. The production, not disclosed by operations, comes from the El Cubo mines complex, Valenciana mines complex and San Ignacio mine, in Guanajuato, and from the Topia mine in Durango. During the period 131.5 K tonnes were mined, 131.3 K tonnes milled, recovering 86.8% Ag, 84.2% Au, to produce 401.2 K Oz Ag, 3,907 Oz Au, 811.5 K Lb Pb, 1.26 M Lb Zn (or 836.4 K Oz AgEq). “Consolidated silver equivalent production in Q4 was 19% higher than the previous quarter. This increase reflects the continuing ramp-up of operations at all of GSilver’s mining assets. Total production for 2022 was 2.15 million AgEq”.

ON FINANCING

  • Heliostar Metals Limited announced a non-brokered private placement of up to 74M units at a price of CAD $0.22 per unit for gross proceeds of up to approximately CAD $16.28M or USD $12.5M. Net proceeds will be used to advance the Ana Paula development stage in Guerrero, as well as for working capital and general corporate purposes.
  • Fabled Silver Gold Corp., announced that it has received Toronto Stock Exchange Venture (TSXV) approval for the 5 to 1 consolidation of the common shares of the company. There will be no name change in conjunction with the consolidation. The post-consolidation common shares will continue to trade on the TSXV under the symbol “FCO”. (Santa Maria project, Chihuahua).
  • Tarachi Gold Corp. cancelled its previously announced private placement (Tarachi, Sonora).

ON RESOURCES AND DEVELOPMENT

  • Silver Tiger Metals Inc., released results from its ongoing drilling program being conducted at its El Tigre project, Sonora. Drilling highlights include hole ET-22-432 with 0.1 g/t Au, 39 g/t Ag, 0.01% Cu, 0.02% Pb, and 0.02% Zn (48.5 g/t AgEq) over 9.4m on the HW Gold Zone, plus 0.16 g/t Au, 399 g/t Ag, 0.43% Cu, 2.8% Pb, and 5.2% Zn (691 g/t AgEq) over 10.4m on the Sooy Vein, including 0.24 g/t Au, 1,154 g/t Ag, 1.29% Cu, 9.8% Pb, and 17% Zn (2,085 g/t AgEq) over 2,1m, plus 0.13 g/t Au, 257 g/t Ag, 0.47% Cu, 1.2% Pb, and 2% Zn (407 g/t AgEq) over 34.8m on the Sulphide Zone, including 0.13 g/t Au, 957 g/t Ag, 1.69% Cu, 3.6% Pb, and 7% Zn (1,556 g/t AgEq) over 8.2m, including 0.17 g/t Au, 1,663 g/t Ag, 4.32% Cu, 6.3% Pb, and 11.5% Zn (2,622 g/t AgEq) over 2.1m;M hole ET-22-434 with 0.39 g/t Au, 97 g/t Ag, 0.01% Cu, 0.08% Pb, and 0.01% Zn (130 g/t AgEq) over 8.5m on the HW Zone, including 2.04 g/t Au, 336 g/t Ag, 0.02% Cu, 0.2% Pb, and 0.04% Zn (497 g/t AgEq) over 1.5m, plus 0.16 g/t Au, 172 g/t Ag, 0.36% Cu, 2.1% Pb, and 2.6% Zn (354 g/t AgEq) over 13m on the Sooy Vein, including 0.19 g/t Au, 326 g/t Ag, 0.84% Cu, 4.9% Pb, and 6% Zn (735 g/t AgEq) over 5.2m, including 0.24 g/t Au, 496 g/t Ag, 1.76% Cu, 7.2% Pb, and 8.6% Zn (1,139 g/t AgEq) over 2.1m, plus 0.11 g/t Au, 377 g/t Ag, 0.32% Cu, 0.1% Pb, and 0.1% Zn (422 g/t AgEq) over 6.6m on the Sulphide Zone, including 0.2 g/t Au, 1,116 g/t Ag, 0.89% Cu, 0.2% Pb, and 0.1% Zn (1,226 g/t AgEq) over 2m, including 0.25 g/t Au, 1,859 g/t Ag, 1.44% Cu, 0.3% Pb, and 0.2% Zn (2,030 g/t AgEq) over 1m, plus 0.22 g/t Au, 606 g/t Ag, 1.13% Cu, 4% Pb, and 7.4% Zn (1,073 g/t AgEq) over 19.9m, including 0.2 g/t Au, 914 g/t Ag, 1.68% Cu, 5.9% Pb, and 12.4% Zn (1,642 g/t AgEq) over 10.5m; and hole ET-22-438 with 0.16 g/t Au, 19 g/t Ag, 0.01% Pb, and 0.01% Zn (31 g/t AgEq) over 43.5m on the HW Gold Zone, including 2.26 g/t Au, 566 g/t Ag, 0.02% Cu, 0.02% Pb, and 0.,02% Zn (739 g/t AgEq) over 0.6m, plus 0.52 g/t Au, 300 g/tr Ag, 0.18% Cu, 0.7% Pb, and 0.3% Zn (385 g/t AgEq) over 3.2m on the Sooy Vein, including 1.51 g/t Au, 773 g/t Ag, 0.48% Cu, 2.1% Pb, and 0.8% Zn (1,007 g/t AgEq) over 0.9m, plus 0.27 g/t Au, 408 g/t Ag, 0.53% Cu, 0.9% Pb, and 0.8% Zn (527 g/t AgEq) over 19.5m on the Sulphide Zone, including 0.24 g/t Au, 879 g/t Ag, 0.76% Cu, 0.9% Pb, and 1.4% Zn (1,036 g/t AgEq) over 3.7m, including 0.62 g/t Au, 2,796 g/t Ag, 1.75% Cu, 1.8% Pb, and 4.2% Zn (3,193 g/t AgEq) over 0.5m, including 0.51 g/t Au, 564 g/t Ag, 0.9% Cu., 1.7% Pb, and 1.3% Zn (772 g/t AgEq) over 8m, including 1.47 g/t Au, 1,148 g/t Ag, 1.4% Cu, 1.5% Pb, and 0.7% Zn (1,452 g/t AgEq) over 0.7m.
  • GoGold Resources Inc., presented additional results from its ongoing drilling program at Eagle and Main Deposits within its Los Ricos South project in Jalisco. Drilling highlights include hole LRGAG-22-218, the best hole drilled to date in the Los Ricos District, with 7.8 g/t Au and 2,153 g/t Ag (36.51 g/t AuEq or 2,738 g/t AgEq) over 55m, including 16.07 g/t Au and 4,664 g/t Ag (78.26 g/t AuEq or 5,869 g/t AgEq) over 25m, including 26,74 g/t Au and 7,756 g/t Ag (130.15 g/t AuEq or 9,761 g/t AgEq) over 15m, including 55.87 g/t Au and  16,525 g/t Ag (276.19 g/t Au or 20,714 g/t AgEq) over 7m, including 121.97 g/t Au and 36,953 g/t Ag (614.67 g/t AuEq or 46,100 g/t AgEq) over 3m, including 145.25 g/t Au and 52,764 g/t Ag (848 g/t AuEq or 63,658 g/t AgEq) over 2m; hole LRGAG-22-221 with 0.85 g/t Au and 138 g/t Ag (2.69 g/t AuEq or 202 g/t AgEq) over 29.4m, including 4.98 g/t Au and 749 g/t Ag (14.97 g/t AuEq or 1,122 g/t AgEq) over 4.4m, including 12.70 g/t Au and 2,370 g/t Ag (44.3 g/t Au Eq or 3,322 g/t AgEq) over 0.9m; and hole LRGAG-22-222 with 0.94 g/t Au and 105 g/t Ag (2.34 g/t AuEq or 176 g/t AgEq) over 8.7m, including 7.6 g/t Au and 592 g/t Ag (15.49 g/t AuEq or 1,162 g/t AgEq) over 0.6m. “Drilling at the Eagle Deposit has returned the highest grade intercepts to date in the district.  These wide high grade intercepts are consistent with geophysical targets on the new Eagle concession”.
  • Bendito Resources Inc., announced the preparation of a NI 43-101 Technical Report for its Oposura project in Sonora. Highlights of this technical report include the potential to support Mineral Resource Estimate (MRE) at Oposura, once appropriate data verification and modelling has been completed; Mineralization at Oposura consists of base and precious metal, massive sulphide manto-style of Zn, Pb-Ag; Additional drilling is needed to extend MRE and connect it to other already known zones; presence of undrilled targets with upside potential demonstrated by geophysics and surface mapping and sampling, including the Mina Blanca Target which consists of polymetallic veins; and potential for discovery of the porphyry source, the same that has been partially intercepted in some holes underneath the MRE.
  • Gatos Silver Inc. updated on extension and resource definition drilling results on its Cerro Los Gatos property in Chihuahua. Highlighted true-width intercepts from the South-East Deeps zone comprise 5.7 m @ 0.13 gpt Au, 47 gpt Ag, 0.42% Cu, 1.8% Zn, 5.3% Zn; 11.3 m @ 0.43 gpt Au, 118 gpt Ag, 0.12% Cu, 1.9% Pb, 2.5% Zn; 2.0 m @ 771 gpt Ag, 0.16% Cu, 0.1% Pb, 0.7% Zn, while those from the definition drilling comprise 3.2 m @ 0.26 gpt Au, 52 gpt Ag, 0.58% Cu, 2.8% Pb, 9.5% Zn; 4.5 m @ 0.52 gpt Au, 88 gpt Ag, 4.3% Pb, 10.0% Zn; 5.3 m @ 0.15 gpt Au, 99 gpt Ag, 0.40% Cu, 3.4% Pb, 5.9% Zn; 9.60 m @ 0.14 gpt Au, 90 gpt Ag, 0.29% Cu, 2.6% Pb, 1.7% Zn. Drilling on the South-East Deeps has defined a zone of more than 950 m along strike, and extended the zone 85 m downdip, remaining open laterally and at depth. “Resource conversion and extension drilling at CLG in the North-West, Central and South-East zones has returned strong results with particularly high base metal values”. Over 45 targets have been identified on the 103,000 hectares land package.
  • Discovery Silver Corp. reported a preliminary feasibility study (PFS) on its Cordero project in Chihuahua. The base case scenario involves an after tax NPV5% of US$1.2 Billion and an IRR of 28%, an 18-year mine life (to mine only 42% of the mineral reserves) with an average of 33 Moz AgEq production per year, with an average AISC of $12.80 per Oz AgEq in the first 12 years as well as an initial development capex of $455 M with a NPV-to-capex ratio of 2.5x. Measured and indicated mineral resources comprise 716 M tonnes averaging 20 gpt Ag, 0.06 gpt Au, 0.29% Pb, 0.38% Zn (or 49 gpt AgEq), containing 467 M Oz Ag, 1.26 M Oz Au, 4,544 M Lb Pb, 8,484 M Lb Zn. Inferred resources comprise 145 M tonnes @ 14 gpt Ag, 0.02 gpt Au, 0.23% Pb, 0.38% Zn (or 35 gpt AgEq), containing 67 M Oz Ag, 122 K Oz Au, 726 M Lb Pb, 1,215 M Lb Zn.
  • Vizsla Silver Corp. updated the mineral resource estimate at it Panuco project in Sinaloa. The report reveals 71% and 150% increments in indicated and inferred mineral resources, and an increase on the grade of 14% and 42% respectively. Indicated minerals resources stand at 7.5 M tonnes @ 243 gpt Ag, 2.12 gpt Au, 0.23% Pb, 0.71% Zn (or 437 gpt AgEq) containing 58.3 M Oz Ag, 508 K Oz Au, 17 K tonnes Pb, 53.3 K tonnes Zn. Inferred mineral resources host 7.2 M tonnes @ 304 gpt Ag, 2.14 gpt Au, 0.19% Pb, 0.54% Zn, hosting 70.7 M Oz Ag, 496 K Oz Au, 13.6 K tonnes Pb, 39.3 K tonnes Zn. The estimate encompasses 8 km of the 86 km of cumulative vein length in the district, including results from 202,709 m of drilling in 644 holes.
  • Endeavour Silver Corp. filed technical reports on the Guanaceví and the Bolañitos projects, disclosing updated mineral resources estimates. At Guanaceví, in Durango, mineral reserves comprise 1.26 M tonnes @ 476 gpt Ag, 1.14 gpt Au, containing 19.3 M Oz Ag, 46 K Oz Au (or 23 M Oz AgEq); measured and indicated mineral resources (exclusive of mineral reserves) are 714.4 K tonnes @ 467 gpt Ag, 1.2 gpt Au, containing 10.7 M Oz Ag, 27 K Oz Au (or 12.8 M Oz AgEq); inferred resources comprise 838.7 K tonnes @ 416 gpt Ag, 0.9 gpt Au, containing 11.2 M Oz Ag, 25 K Oz Au (or 13.1 M Oz AgEq). At Bolañitos, in Guanajuato, mineral reserves comprise 534 K tonnes @ 101 gpt Ag, 2.8 gpt Au, containing 1.2 M Oz Ag, 42.6 K Oz Au; (or 4.6 M Oz AgEq); measured and indicated mineral resources (exclusive of mineral reserves) are 453.5 K tonnes @ 110 gpt Ag, 2.3 gpt Au, containing 1.6 M Oz Ag, 34 K Oz Au (or 4.1 M Oz AgEq); inferred resources comprise 1.66 M tonnes @ 141 gpt Ag, 2.5 gpt Au, containing 7.5 M Oz Ag, 132.2 K Oz Au (or 17.6 M Oz AgEq).  

ON DEALS AND CORPORATE ISSUES

  • Discovery Silver Corp., announced the appointment of its new CEO, effective immediately, and the promotion of Román Solis to VP Mexico (Cordero property, Chihuahua).
  • Altaley Mining Corporation announced the appointment of its new CFO, effective on February 1st, 2023 (Tahuehueto project, Durango).
  • Tarachi Gold Corp. signed a binding letter agreement with Compañía Minera de Atocha S.A. de C.V. for the sale of the Magistral project in Durango. At closing of the transaction Atocha will make a cash payment of US$4.05 M; further US$500 K when 50% of the tailings have been mined/sold or processed, or after the second calendar year of operation at the project; US$500 K when 100% of the tailings have been mined/sold or processed, or after the second calendar year of operation at the project, and the amount of value added tax (IVA) owed to the company by the government, estimated at US$650 K. “Tarachi will seek to settle all outstanding obligations owing to Manto Resources S.A. de C.V. (“Manto”) in relation the Company’s original acquisition of the Magistral Project from Manto in 2021 ….. Tarachi will pay to Manto 15% of all payments received from Atocha in the Transaction as those payments are received”. Tarachi expects to receive from the transaction, net of payments made to Manto, a total of US$4.84 M.
  • Vizsla Silver Corp. appointed Charles Funk as Lead Technical Advisor, and Michael Pettingeli was promoted to Senior Vice President, business development and strategy. (Panuco, Sinaloa).

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-plane displaying slickensides on a silicified breccia in a project in Sonora, Mexico.  Photo by Abraham López.

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

By Jorge Cirett

During the 3rd week of the year (January 16th to January 22nd, 2023), 20 companies working in Mexico released news on their properties. Two companies posted on exploration of non-advanced properties, six companies posted on Q4 2022 production figures, one released its 2023 production guidance and one announced the re-start of operations at a processing plant in Guanajuato. One company extended the maturity date of convertible debentures. Five companies informed on work at its advanced properties, including three that released drilling results and two that updated on mineral resources. One company restricted the NSR agreement on an advanced property, one informed on the acquisition of a past-producing mine and one other informed on the leasing of its processing plant for part of the profits. ON MEXICO ISSUES, no relevant news. ON EXPLORATION, In Sonora, Reyna Gold released sample results from its La Gloria project. In Jalisco, Almadex Minerals updated on exploration plans at San Pedro. ON MINING, Orla Mining, Avino Silver, Fortuna Silver, Gold Resource, Pan American Silver and First Majestic Silver presented production reports for Q4 2022. Torex Gold released its 2023 production guidance and Guanajuato Silver is to start processing at the Cata mill in Guanajuato. Capitan Mining released drill results from the Jesús María system at its Cruz de Piedra project in Durango.  ON FINANCING, Excellon Resources is to convert C$4.5 M of debentures into equity and extend the maturity of remaining principal. ON RESOURCES AND DEVELOPMENT, GR Silver released drilling results from the SE zone of the San Marcial project in Sinaloa. Regency Silver updated the resource estimate at Dios Padre in Sonora. GoGold Resources posted drilling results from El Favor deposit at its Los Ricos North project in Jalisco. Excellon Resources filed a PEA on La Negra deposit in Hidalgo. ON DEALS AND CORPORATE ISSUES, Defiance Silver restructured an option agreement to acquire the NSR at the Tepal project in Michoacan. Excellon Resources announced last week the acquisition agreement on the past-producing La Negra mine in Hidalgo. Xali Gold signed a lease for part of the profits obtained in the processing of minerals by a private company at its San Dieguito de Arriba mill in Nayarit. ON SOCIAL RESPONSIBILITY, First Majestic Silver received the “Silver Helmet Award” for underground mining with more than 500 workers for its health and safety performance.

ON MEXICO ISSUES

  • No Relevant News.

ON EXPLORATION

  • Reyna Gold Corp. released sample results from district-scale exploration at its 24,215 hectare La Goloria property in Sonora. At Las Carmelitas 43 samples average 2.25% Cu, 89 gpt Ag, 0.21 gpt Au and 0.48% Sb defining a supergene enrichment zone on conglomerate, agglomerate and sandstone with a 2.5 Km by 1.7 km footprint continuing undercover in several directions. At the Western target new parallel structures have been discovered on a 1,500 by 450 m zone with eight samples returning 2.89 to 11.35 gpt Au, up to 27 gpt Ag and 22 to 135 gpt Tellurium. At La Republicana the northwest-southeast trend has now been extended with discontinuous veins and veinlets for 2.8 km, and a width of 625 m with grades of up to 103.5 gpt Au, 283 gpt Ag, 2.4% Cu, 5.33% Pb, 0.12% Zn. “At least 3 hydrothermal events have occurred in the zone: 1) veins and veinlets of white quartz (occasionally greyish) with the presence of galena, chalcopyrite, and covellite, 2) veins and veinlets of quartz-tourmaline (cutting first event structures) coarse pyrite is observed, traces of chalcopyrite and secondary minerals such as hematite, jarosite, malachite and chrysocolla, 3) filling of calcite and iron carbonates within second event structures”. Drilling is programmed for March 2023.
  • Almadex Minerals Ltd. updated on exploration plans for its San Pedro project in Jalisco. The breccias intercepted in 2022 drilling appear to have a sub horizontal distribution. “Further surface mapping is planned to confirm and refine this interpretation in order to optimise the next drilling program. The elevated base metals and copper seen in the breccia, along with acid sulphate altered fragments suggests that the breccia and related mineralisation may be a late feature in the lithocap environment”. It is interpreted that the acid sulphate lithocap present has potential for gold mineralization, and deep copper potential beneath.

ON MINING

  • Orla Mining Ltd. provided an operational update for the fourth quarter 2022. The Camino Rojo Oxide mine produced 32,017 Oz Au during the period, and 109,596 Oz Au throughout the full year. All-in sustaining costs (AISC) has been maintained at $600 to $700 per Oz Au for the year. Production for 2023 is expected to be between 100,000 to 110,000 Oz Au. “Income taxes accrued during 2022, including Mexican Special Mining Duty, totalling approximately $35 million, will be paid in a lump sum in March 2023. Thereafter, Orla expects to pay income tax instalments monthly, beginning in May 2023”. Orla ended the year with a cash position of $96.6 M.
  • Avino Silver & Gold Mines Ltd. reported fourth quarter 2022 production results at the Avino mine in Durango. During the period 150.3 K tonnes were milled at an average grade of 70 gpt Ag, 0.62 gpt Au, 0.53% Cu, recovering 92% Ag, 81% Au, 88% Cu to produce 309.8 K Oz Ag, 2,426 Oz Au, 1.54 M Lb Cu (770 .1 K Oz AgEq). For the year 541.8 K tonnes were milled @ 62 gpt Ag, 0.42 gpt Au, 0.61% Cu, recovering 92% Ag, 78% Au, 89% Cu, to produce 985.2 K Oz Ag, 5,778 Oz Au, 6.50 M Lb Cu (2.65 M Oz AgEq). The dry-stack tailing facility was commissioned and is now fully operational.
  • Guanajuato Silver Company Ltd. announced that the Cata mill has commenced precious metals processing at the Valenciana Mines Complex (VMC) in Guanajuato. The company is to start processing material at a rate of 8 K tonnes per month and to increase it later in the year to 20 K tonnes per month. The mill has a nameplate capacity of 36 K tonnes per month. “The Company plans to operate the Cata mill with production from both VMC and the San Ignacio mine …… intends to backfill tailings underground using a hydraulic fill system that will make use of select voids and open stopes that have been created at VMC over the past 450 years of underground mining”.
  • Torex Gold Resources Inc. provided operational guidance for 2023 and 5-year production outlook for the Morelos Complex in Guerrero, which comprises the El Limón Guajes (ELG) Complex and the Media Luna project. For 2023 at ELG the expected gold production is between 440 K and 470 K Oz Au at total cash costs $740 to $780 per OZ Au and all-in sustaining costs of $1,080 to $1,130. “The strip ratio for 2023 is expected to average 10.7:1 compared to 8.9:1 in 2022 given additional laybacks within the El Limón and El Limón Sur open pits. Based on the current mine plan, a higher portion of waste is expected to be mined in the second and third quarters compared with the first and fourth quarters”. Approximately $39 M are budgeted for exploration and drilling in 2023, including $20 M for Media Luna, $6 M for ELG underground, $8 M for exploration in near mine on early exploration targets and $5 M in definition and grade control drilling. For the next five years production is expected to be in the 400 K to 500 K Oz Au per year.
  • Fortuna Silver Mines Inc. reported production results for the fourth quarter 2022, including figures from its Mexican operations. During the fourth quarter 259.5 K tonnes were milled at a rate of 2,883 tonnes per day (tpd), averaging 194 gpt Ag, 1.13 gpt Au, recovering 91.1% Ag, 89.8% Au to produce 1.47 M Oz Ag, 8,499 Oz Au. For the year, 1.03 M tonnes were milled at a rate of 2,925 tpd, averaging 191 got Ag, 1.14 gpt Au, to produce 5.76 M Oz Ag, 34,124 K Oz Au. For 2023 the company plans to process 1.03 M tonnes @ 186 gpt Ag, 1.19 gpt Au, reflecting the declining grade profile of mineral reserves.
  • Gold Resource Corp. released fourth quarter 2022 production for the Arista mine in Oaxaca. During the period 97.8 K tonnes were milled at a rate of 1,353 tonnes per day, averaging 2.68 gpt Au, 91 gpt Ag, 0.37% Cu, 2.29% Pb, 4.79% Zn to produce 6,933 Oz Au, 265.8 K Oz Ag, 284 tonnes Cu, 1,808 tonnes Pb, 3,920 tonnes Zn.
  • Pan American Silver Corp. announced preliminary production results for the Q4 2022, including figures from its Mexican operations. At La Colorada, in Zacatecas, 1.34 M Oz Ag, 700 Oz Au were produced during the period, for a yearly total of 5.93 M Oz Ag, 3,300 Oz Au. At Dolores, in Chihuahua, 0.59 M Oz Ag, 34,600 Oz Au were produced during the quarter, for a yearly production of 2.24 M Oz Ag, 136,900 Oz Au.
  • First Majestic Silver Corp. released total production results for the fourth quarter of 2022. The company’s consolidated production from its three operating mines in Mexico (San Dimas in Durango, Santa Elena in Sonora, La Encantada in Coahuila) was 2.39 M Oz Ag, 46,194 Oz Au (or 6.17 M Oz AgEq). The liquid natural gas powerplant at Santa Elena was expanded from 12 MW to 24 MW “to supply low‐cost, clean power to the Ermitaño mine and the recently completed dual‐circuit plant”. In exploration, four drilling rigs are operating at Dan Dimas, in Durango, three at Santa Elena in Sonora and one at La Encantada, in Coahuila.

ON FINANCING

  • Excellon Resources Inc. entered into a binding term sheet with holders representing approximately 66.67% of the principal “amount of outstanding convertible debentures to convert 25% of the debentures (C$4.5 M) into equity and reprice and extend maturity of remaining principal outstanding upon closing the acquisition of La Negra property in Queretaro, providing greater flexibility to the Company. Furthermore, reprice the conversion price of the remaining principal to C$0.535 per share, 6.5% interest rate or 10.0% payable in shares at the company’s election” (La Negra, Hidalgo).

ON RESOURCES AND DEVELOPMENT

  • GR Silver Mining Ltd. released surface drilling results from six holes in the Southeast Area of the San Marcial project in Sinaloa. Highlighted core-length intervals comprise 5.6 m @ 1,223 gpt Ag, 1.4% Pb, 1.2% Zn (including 0.3 m @ 25,150 gpt Ag, 30% Pb, 18.6% Zn); 82.7 m @ 121 gpt Ag (including 0.4 m @ 3,386 gpt Ag and 1.1 m @ 1,391 gpt Ag); 112.6 m @ 61 gpt Ag (including 0.9 m @ 1,055 gpt Ag); 0.6 m @ 14.3 gpt Au. “The six holes represent extensions along strike or down dip, creating the potential to expand silver mineralization boundaries”.
  • Capitan Mining Inc. released drill assays for five holes on the Jesus Maria zone at the Cruz de Piedra project in Durango. Highlighted core length intervals comprise 16.8 m @ 0.35 gpt Au, 187 gpt Ag, 0.1% Pb, 0.1% Zn (including 1.5 m @ 1.36 gpt Au, 1,381 gpt Ag, 0.8% Pb, 0.5% Zn); 4.6 m @ 0.63 gpt Au, 183 gpt Ag (including 1.5 m @ 1.45 gpt Au, 504 gpt Ag); 15.2 m @ 0.44 gpt Au, 21 gpt Ag, 0.5% Pb, 0.8% Zn (including 1.5 m @ 1.82 gpt Au, 81 gpt Ag, 3.2% Pb, 4.2% Zn). The Jesus Maria zone has been traced by trenching and drilling for 750 m of strike length to a depth of up to 150 m “On Dec 6 th, 2022, Capitan announced that it had entered into a transaction with a third party to consolidate the 2.5km high grade Jesus Maria trend”.
  • Regency Silver Corp. announced an updated resource estimate for its Dios Padre project in Sonora. The updated resource estimate incorporates 1,056 m of drilling in 8 holes drilled in 2022 and 10,425 m of historic drilling in 66 holes, to define inferred resources of 1.384 M tonnes @ 228 gpt Ag, 0.32 gpt Au (255.6 gpt AgEq) containing 10.14 M Oz Ag, 14,000 Oz Au. “The resource estimate contains information from the historic Dios Padre silver mine only and does not include any information from the recent discovery hole REG 22-01 which contained an intercept of 35.8 metres of 6.84 g/t gold, 0.88% copper and 21.82 g/t silver”.
  • GoGold Resources Inc. released the results of eight holes from El Favor East deposit within Los Ricos North project in Jalisco. Highlighted core length intervals comprise 84.5 m @ 0.24 gpt Au, 79 gpt Ag; 44.8 m @ 0.30 gpt Au, 111 gpt Ag (including 17.3 m @ 0.71 gpt Au, 225 gpt Ag); 7.8 m @ 0.45 gpt Au, 190 gpt Ag; 19.9 m @ 0.59 gpt Au, 392 gpt Ag (including 5.0 m @ 1.97 gpt Au, 1,300 gpt Ag, which includes 1.2 m @ 6.48 gpt Au, 3,722 gpt Ag); 18.3 m @ 0.21 gpt Au, 97.4 gpt Ag; 35.2 m @ 0.18 gpt Au, 130 gpt Ag. “El Favor is located approximately 800 meters along strike to the east of the El Orito deposit. The combined systems cover approximately 2.9km in mineralized strike length over a 3.7km distance”.
  • Excellon Resources Inc. filed a preliminary economical assessment on La Negra project in Queretaro. The report summarizes the mineral resource estimate with 2.46 M tonnes @ 64 gpt Ag, 1.95% Zn, 0.50% Cu, 0.27% Pb, containing 5.1 M Oz Ag, 105.8 M Lb Zn, 27.1 M Lb Cu, 14.6 M Lb Pb in indicated resources and 6.42 M tonnes @ 80 gpt Ag, 1.80% Zn, 0.40% Cu, 0.65% Pb, containing 16.5 M Oz Ag, 254.8 M Lb Zn, 56.6 M Lb Cu, 92.0 M Lb Pb as inferred resources. The PEA envisages 7.4 years of mine life processing 6.22 M tonnes averaging 63 gpt Ag, 1.5% Zn, 0.4% Cu, 0.4% Pb at a daily rate of 2,500 tonnes.

ON DEALS AND CORPORATE ISSUES

  • Defiance Silver Corp. restructured the option agreement to acquire the 2.5% NSR at the Tepal project in Michoacan with Minera Tepal S.A. de C.V. “The company is making a payment of US $100,000 to defer all payments until June 30, 2024, at which time the remaining payment schedule will resume”.
  • Excellon Resources Inc. announced on January 9, 2023 a definitive acquisition agreement with Orion Resource Partners on the acquisition of the permitted, past-producing mine of La Negra, in Queretaro. The deal involves the payment on US$50 M paid through an upfront payment in shares of Excellon totaling US$20 M upon closing of the acquisition and a further US$30 M of deferred, “contingent consideration payable in common shares of the Company or in cash at the Company’s option, following the restart of commercial production”. La Negra property counts with 2.46 M tonnes @ 64 gpt Ag, 1.95% Zn, 0.50% Cu, 0.27% Pb, containing 5.1 M Oz Ag, 105.8 M Lb Zn, 27.1 M Lb Cu, 14.6 M Lb Pb in indicated resources and 6.42 M tonnes @ 80 gpt Ag, 1.80% Zn, 0.40% Cu, 0.65% Pb, containing 16.5 M Oz Ag, 254.8 M Lb Zn, 56.6 M Lb Cu, 92.0 M Lb Pb. The current PEA envisages 7.4 years of mine life processing 6.22 M tonnes averaging 63 gpt Ag, 1.5% Zn, 0.4% Cu, 0.4% at a daily rate of 2,500 tonnes.   
  • Xali Gold Corp. signed a binding letter of intent with Minera Cinco Reales S.A. de C.V. on the San Dieguito de Arriba plant in Nayarit. Xali will have the right to receive 15% of the net profits from any mineral that is processed at the plant, or minimum payments of US$10 K in the fourth month from the signing, US$20 K on the fifth month, US$30 K on the sixth month, US$40 k on the seventh to tenth months, US$50 K from month eleven on. Before the fourth month, Xali should receive US$6.5 K on January 30th, US$6.5 K on February 27th, US$6.5 K on March 22nd. “Upon the execution of this Agreement, MCR will act as the only operator of the plant and will have the exclusive option to obtain permits and refurbish the plant and equipment to operational status and to manage and operate the SDA plant for their benefit for an initial period of 14 months …… Minera Cinco Reales operates several mines and processing plants (150 to 300 tonnes per day) in Northern and Central Mexico producing gold, silver, copper, lead and zinc”.

ON SOCIAL RESPONSIBILITY

  • First Majestic Silver was awarded the prestigious “Silver Helmet Award” in the category of “Underground Mining of More Than 500 Workers” by the Mining Chamber of Mexico for its outstanding performance in occupational safety and health on its Santa Elena operations in Sonora.

On the image below: Tectonic breccia in granitic rock sealed by fine grained darker intrusive on a copper project in the Sonoran Desert. Picture by Abraham López.

The Mining and Exploration News in Mexico: Highlights on the Second Week of January, 2023.

fault-plane displaying slickensides

By Miguel A Heredia

During the 2nd week of the year (January 09th to January 15th, 2023), at least 30 press releases were announced by companies working in Mexico, and 4 news published by the media with nine communicating production and financial results, seven reporting resources and developments of their properties, five disclosing deals and corporate issues, five informing on exploration results, four announcing financing issues, and four commenting on Mexican issues. ON MEXICO ISSUES, The Ministry of the Environment and Natural Resources (SEMARNAT) withdrew the permit to Fortuna Silver Mines, which operates the San José mine in Oaxaca through the company Minera Cuzcatlán.  Compañía Minera Cuzcatlán (Fortuna Silver) responded to SEMARNAT that it is operating normally at its San José mine in Oaxaca under complete legality. Mining companies shine at the beginning of the year on the Mexican Stock Exchange. The governments of Mexico and Canada have agreed to strengthen resilience in the supply chain in which both countries participate, reported Mary Ng, Minister of International Trade, Export Promotion, Small Business and Economic Development of Canada. Prime Mining, Tocvan Ventures, Oroco, and Silver Tiger reported the best drilling intercepts in Mexico on the second week of January, 2023.  ON EXPLORATION, In Sonora, Aztec Minerals presented a summary of the results from its recently completed 2022 drilling program at its Cervantes project,  Colibri completed additional drilling on its Evelyn project, Tocvan drill intersected a broad zone of gold at its El Picacho project, and Riverside provided a corporate outlook for 2023. In Sinaloa, Prismo Metals released results from the remaining holes from its now completed 2022 drill program at its Palos Verdes project.  ON MINING, Aura, Alamos Gold, Americas, Endeavour, Gatos Silver, GoGold, Golden Minerals, and Torex announced Q4 and full-year 2022 production from their Mexican operations, and Altaley reported pre-production results during mill commissioning at its Tahuehueto property in Durango.  ON FINANCING, Canuc closed a non-brokered private placement for gross proceeds of CAD $680K (San Javier project, Sonora). Guanajuato Silver closed the second and final tranche of its non-brokered private placement offering totaling CAD $8.5M (El Cubo, San Ignacio, and Valenciana mines, Guanajuato). Fabled announced that it plans to complete a non-brokered private placement for gross proceeds of up to CAD $1.5M (Santa Maria property, Chihuahua). Altaley entered into a debt settlement agreement with an arms’ length mining contractor to settle CAD $1,176,297 which is owing to the contractor as a result of underground mine development work (Tahuehueto mine, Durango). ON RESOURCES AND DEVELOPMENT, Regency Silver announced recommencement of the 2023 drilling program at its Dios Padre property in Sonora, as well as the commencement of an IP survey. Discovery outlined its 2023 work program and budget for its Cordero property in Chihuahua. Oroco released further assay results from the North Zone drilling program at its Santo Tomas project in Sinaloa. Prime Mining presented results from 48 drill holes collared in the Z-T area at its Los Reyes project, Sinaloa. Silver Tiger released results from its ongoing drilling program being conducted at its El Tigre project, Sonora. Sailfish announced results from its recently drilling program conducted at its Gavilanes property in Durango. Silver Viper reported positive geophysical and geochemical survey results at its Virginia project, Sonora. ON DEALS AND CORPORATE ISSUES, Santacruz announced the appointment of its new CFO (Zimapan property, Hidalgo). Excellon announced that its Board of Directors has approved the voluntary delisting of its common shares from the New York Stock Exchange (La Platosa mine, Durango). Fabled´s shareholders approved a share consolidation of the outstanding securities of the Company on an up to ten for one basis (Santa Maria property, Chihuahua). Vizsla completed strategic investment in the acquisition of Palos Verdes project, Sinaloa from Prismo Metals.   ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUE

  • The Ministry of the Environment and Natural Resources (SEMARNAT) withdrew the permit to Fortuna Silver Mines, which operates the San Jose mine in Oaxaca through the company Minera Cuzcatlán since, according to SEMARNAT, it incurred in several irregularities. Such permit had been previously granted by some servants of SEMARNAT. In 2022, SEMARNAT said that it had been a misspelling to have issued a permit for 12 more years for the operation of this company. SEMARNAT was even questioned for providing legal advice to the company in order to obtain the environmental impact authorization and the regularization of construction of works for which it did not have authorization. With the suspension of the permit, SEMARNAT said that the company can appeal and resort to its influence peddling as it has done since its settlement in Oaxaca. However, if the judges confirm the resolution, it must withdraw and return the land to its owners, in addition to repairing the damage caused by the excessive pollution it has generated in the area.
  • Compañia Minera Cuzcatlán (Fortuna Silver) responded to SEMARNAT that it is operating normally at its San Jose mine in Oaxaca under complete legality. Derived from the notification received by the Ministry of the Environment and Natural Resources (SEMARNAT) at the beginning of 2023, regarding the intention of evaluating the MIA (Environmental Impact Statement) granted legally and correctly in December 2021, it is notified that this new procedure does not affect the daily activities of the Company, thus confirming that the San José Mining Unit, located in San José del Progreso, Oaxaca, is operating normally. Fortuna Silver Mines, communicated on January 5 of this year, that its San José Mining Unit, which operates through its subsidiary Compañía Minera Cuzcatlán, fully complies with all current environmental laws, for which it has expressed its disagreement and is taking legal measures to protect its more than 1,200 employees, a value chain made up of more than 600 companies, 150 of them from the area, as well as an annual income of more than MXP $600M that benefits more than 30,000 people in the Central Valleys of Oaxaca.  “Likewise, the Company highlights that, in 11 years of operation, it has been inspected 15 times by the Federal Attorney for Environmental Protection (PROFEPA), in turn it has registered two inspections by the National Water Commission (CONAGUA), who in none of their proceedings have ruled on facts and/or indications of contamination at the site or derived from the operation of the San José Mine. Finally, Compañía Minera Cuzcatlán reiterates its commitment to continue working together with neighboring communities to improve and expand the social benefits of its operation, through sustainable development initiatives”.
  • Mining companies shine at the beginning of the year on the Mexican Stock Exchange. The increase in the price of metals such as gold, silver and copper, supported the rebound in the price of the shares of companies in the Mexican market these days. Industrias Peñoles and Grupo México are framed as the first and third issuers in the S&P/BMV IPC index, which brings together the 36 largest firms in the Mexican stock market, which have accumulated the most performance in these first days of 2023. In the first case its shares maintain gains of 21.55%, at a price of 291.30 pesos per unit, in the first six business days of January. For the second, the return has been 18.35%, at 80.96 pesos.
  • The governments of Mexico and Canada have agreed to strengthen resilience in the supply chain in which both countries participate, reported Mary Ng, Minister of International Trade, Export Promotion, Small Business and Economic Development of Canada. Mexico, Canada, and the United States have agreed to joint actions to strengthen their supply chains both regionally and globally. In 2021, the Joe Biden Administration launched its Bailout for America, under the Bailout for America Act of 2021, signed into law in March.
  • Prime Mining Corp., Tocvan Ventures Corp., Oroco Resource Corp., and Silver Tiger Metals Inc., reported the best drilling intercepts in Mexico on the second week of January, 2023. Details are shown in the table below:

ON EXPLORATION

  • Aztec Minerals Corp., presented a summary of the results from its recently completed RC and oriented core holes 2022 drilling program at its Cervantes project in Sonora. It consisted of 26 RC holes totalling 5,248.6m, and 11 oriented core holes totalling 2,588m. Combined 2022 drilling program totaled 37 holes and 7,836.6m on California, California Norte, Purisima East and Jasper targets. All the holes collared in 2022 at California and California Norte targets, except one, encountered near surface, oxidized gold mineralization with minor copper values. Now, California target has been expanded to approximately 900m long E-W by 730m wide N-S, and with continuous mineralization of up to 170m depth. “The porphyry gold-copper mineralization is still open in all directions with anomalous mineralization and alteration up to 265m depth vertically.  The California and California Norte targets appear to be merging from drilling and surface exposures”. At Jasper target, step out 600m west of the California Zone, the drilling program intercepted broad alteration and strongly oxidized, argillically altered, and brecciated siltstone-quartzite sediments. “Strong copper oxide mineralization is found on outcrops and in the drilling.  Sulfides have not yet been found in drilling to 209 m depth, suggesting the there is a possibility to encounter a secondary sulfide enrichment blanket”. “At the Purisima Este target drilling found anomalous Au and multi-element mineralization related to the edges of its diatreme-breccia pipe related to quartz feldspar intrusive and follow-up work is planned”. Drilling highlights of the 2022 program include hole CAL22-001 with 1.04 g/t Au over 94m, including 3.96 g/t Au over 55m, and 0.36% over 55m; hole CAL 22-004 with 1.0 g/t Au over 65m, including 4.25 g/t Au over 24.4m, and 0.065% Cu over 160m; hole CAL 22-005 with 1.49 g/t Au, including 3.42 g/t Au over 51.7m, and 0.091% Cu over 119m; hole CAL 22-006 with 0.75 g/t Au, including 3.08 g/t Au over 9.14m, and 0.1% Cu over 138m; hole 0.87 g/t Au over 152m, including 2.05 g/t Au over 33.5m, and 0.095% Cu over 123m; hole CAL 22-027 with 0.68 g/t Au over 120m, including 1.46 g/t Au over 27m; and hole CAL 22-031 with 0.56 g/t Au over 135m, including 2.29 g/t Au over 12m.  
  • Colibri Resource Corporation completed additional drilling on its Evelyn project in Sonora, which included 3 diamond holes totaling 1,063m, 5 reverse circulation holes totaling 1,205m, and 130 short RC holes totaling 1,548 m to penetrate alluvium and sample the top of bedrock.
  • Tocvan Ventures Corp., announced results from 3 out of 10 holes drilled at its Picacho project in Sonora. The company reported that hole SRA-22-003 intersected a broad zone of gold, returning 0.3 g/t Au and 0.5 g/t Ag over 48.8m, including 0.51 g/t Au and 0.8 g/t Ag over 27.5m, including 0.71 g/t Au and 1 g/t Ag over 19.8m, including 1.14 g/t Au and 1 g/t Ag over 12.2m, and including 4.73 g/t Au and 2 g/t Ag over 1.5m. Results for the remaining seven drillholes are pending.
  • Riverside Resources Inc., provided a corporate outlook for 2023 of the company´s growth plans. Highlights include look for a new strategic alliance with a major base metal producer; to drill-test with partner funds at least one project in H1, 2023 (BHP); look for new partnership to advance its La Union property in Sonora after high-grade results in 2022; and farm-out its Cecilia project in Sonora, which has a proposed drilling program to be executed at the property.
  • Prismo Metals Inc., released results from the remaining holes from its now completed 2022 drill program at its Palos Verdes project, Sinaloa, which consisted of eight holes totalling 2,100m. The best drill intercept was encountered in hole PV-22-17 with 0.43 g/t Au, 115 g/t Ag, 0.28% Cu, 0.47% Pb, and 0.81% Zn (200 g/t AgEq) over a true width (TW) of 3m, including 1.18 g/t Au, 297 g/t Ag, 0.56% Pb, 1.18% Pb, and 1.97% Zn (516 g/t AgEq) over a TW of 1.05m.

ON MINING

  • Aura Minerals Inc., reported that it produced 28,591 gold equivalent ounces during Q4, 2022 from its Aranzazu mine, Zacatecas.
  • Alamos Gold Inc., reported Q4 and annual 2022 production results from its Mulatos mine in Sonora, and provided updated three-year production and operating guidance. In Q4, 2022 the company produced 49,100 Oz Au at an average grade of 0.78 g/t Au. Alamos expects to produce over 175K-185K Oz Au at an average grade of  0.73 g/t Au in 2023 with a total cash cost in te range of USD $900-USD $950 per Oz Au; an all included sustaining cost of USD $950-1,000 per Oz Au; a sustaining capital of USD $10M; grow capital of USD $5-10M (a total sustaining and grow capital of USD $19-24M); capitalized exploration of USD $4M; an a total capital expenditures and capitalized exploration of USD $19-24M. Production for 2024 and 2025 is expected to be in the range of 140-150K Oz Au and 110-120K Oz Au respectively.
  • Altaley Mining Corporation reported pre-production results during mill commissioning at its Tahuehueto property in Durango. Tahuehueto is currently operating one ball mill in a commissioning phase, as part of the initial 500 tonnes per day project, producing precious metals-rich, commercial grade lead and zinc concentrates. The company produced in Q4, 2022 862 tonnes of Pb concentrate with grades of 26.31% Pb, 76.72 g/t Au, and 643 g/t Ag with metallurgical recoveries of 76.68%, 76.72%, and 68.115 respectively; and 878 tonnes of Zn concentrate with grades of 47.51% Zn, 7.5 g/t Au, and 145 g/t Ag with metallurgical recoveries of 54.31%, 13.23%, and 15.12% respectively.
  • Americas Gold and Silver Corporation reported Q4 and annual year 2022 production from its Cosala mine operation in Sinaloa. It produced 196K Oz Ag, 3.8M Lb Pb, and 10.4M Lb Zn during Q4, 2022, and 636K Oz Ag, 15.3M Lb Pb, and 39.3M Lb Zn in the full-year 2022.
  • Endeavour Silver Corp., released Q4 and full-year 2022 production results from their Mexican mine operations. Consolidated figures for Q4 and annual 2022, compared to the year 2021 are shown in the table below:

Figures by mine for the period Q4, and full year 2022 are shown in the tables below:

  • Gatos Silver Inc., announced guidance and Q4 and full year 2022 production results from its 70% owned Cerro Los Gatos, Chihuahua. On te period Q4, 2022 (100% Basis), the company milled 261,929 tonnes of 387 g/t Ag, 3.7% Zn, 1.9% Pb, and 0.3 g/t Au with metallurgical recoveries of 89.6%, 62.7%, 86.3%, and 53.9% respectively, to produce 2.9M Oz Ag, 13.5M Lb Zn, 9.7M Lb Pb, and 1.4K Oz Au. For the full-year 2022, the company reported production of 10.3M Oz Ag, 60.7M Lb Zn, 45.9M Lb Pb, and 5.3K Oz Au. 2022 guidance announced by Gatos Silver was 9.35-9.65M Oz Ag, 58-61M Lb Zn, 43-45M Lb Pb, and 5.0-5.3K Oz Au. Zinc, lead and gold production increased during 2022, with zinc and gold near the high end of guidance, and lead near the guidance midpoint. Compared with 2021, zinc production increased by 22%, lead production by 10%, and gold production by 2%. As of December 2022, the company reported a cash balance of $17M and outstanding balance of the company´s credit facility of $9M.
  • GoGold Resources Inc., reported Q4, 2022 production results from its Parral Tailings project, Chihuahua. The company produced 159,838 Oz Ag, 2,399 Oz Au, and 497.3K Lb Cu (441,217 Oz AgEq).
  • Golden Minerals Company announced Q4, and full-year 2022 production and financial results from its Rodeo project, Durango. The company in Q4, 2022 mined 161,244 tonnes and processed 52,736 tonnes of 2 g/t Au and 10 g/t Ag with metallurgical recoveries of 73.3% and 82% respectively, to produce 2,398 payable Oz Au (in doré) and 13,560 payable Oz Ag (in doré) or 2,568 payable Oz AuEq (in doré). Golden sold 2,518 Oz Au and 14,217 Oz Ag (2,696 Oz AuEq), at realized prices, before refining and selling costs of USD $1,729.40 and USD $21.69 respectively. For the full year 2022, Golden mined 771,485 tonnes and processed   195,599 tonnes of 2.6 g/t Au and 11 g/t Ag with metallurgical recoveries of 74.7% and 81.2% respectively, to produce 11,982 payable Oz Au (in doré) and 52,179 payable Oz Ag (in doré) or 12,616 payable Oz AuEq (in doré). Golden sold 12,451 Oz Au and 53,486 Oz Ag (13,101 Oz AuEq), at realized prices, before refining and selling costs of USD $1,805.34 and USD $21.93 respectively.
  • Torex Gold Resources Inc., reported Q4 and full-year 2022 production results from El Limón-Guajes mine complex, Guerrero. The company produced 116,196 Oz Au in Q4 to total 474,035 Oz Au in the full-year 2022. It surpassed the upper end of the guided range of 430K-470K Oz Au. Torex sold in Q4, 2022 121,913 Oz Au for a total of 473,122 Oz Au in the full-year 2022.

ON FINANCING

  • Canuc Resources Corporation issued 8.5M of common shares at a price of CAD $0.08 per common share to close a non-brokered private placement for gross proceeds of CAD $680K. Most of the gross proceeds will be used for exploration on the San Javier project, Sonora. 
  • Guanajuato Silver Company Ltd., closed the second and final tranche of its non-brokered private placement offering. The company issued 4,080,486 common shares for gross proceeds of CAD $1,734,206.55 in the second tranche for a total offering of CAD $20,032,682 for gross proceeds of CAD $ 8,513,889.85. The net proceeds of the offering will be used to, among other things, ramp up production at the Company’s existing mines in and about Guanajuato, Mexico including El Cubo, San Ignacio and Valenciana, expand and modernize the processing facilities at the Topia mine in Durango, Mexico, increase brownfields’ exploration programs, and fund general and administrative expenses.
  • Fabled Silver Gold Corp., announced that it plans to complete a non-brokered private placement for gross proceeds of up to CAD $1.5M at a price of CAD $0.10 per common share. Net proceeds will be used to make required property payments, to further explore the Santa Maria Property, and for general working capital. 
  • Altaley Mining Corporation entered into a debt settlement agreement with an arms’ length mining contractor to settle CAD $1,176,297 which is owing to the contractor as a result of underground mine development work. The Company and the contractor have agreed that the issuance to the contractor of 735,186 common shares of the company at a deemed price of CAD $1.60 per common share will extinguish and settle the debt.

ON RESOURCES AND DEVELOPMENT

  • Regency Silver Corp., announced recommencement of the 2023 drilling program at its Dios Padre property in Sonora, as well as the commencement of an IP survey. The company plans to drill a minimum of 3,000m as an initial follow up to the successful drilling program completed in August, 2022. It also will commence an IP survey to provide 3D information to a depth of 800m. “The current drill and IP program is designed to determine more specifically what type of broad, mineralizing system is present at Dios Padre”.
  • Discovery Silver Corp., outlined its 2023 work program and budget for its Cordero property in Chihuahua. The goal is to complete the Pre-Feasibility Study (PFS) later this month and will be focused on optimization opportunities including improved mining and processing efficiencies, as well as complete a Feasibility Study (FS) in Q1, 2023.. Alongside this work, Cordero has allocated drill metres to the exploration potential on the large, highly-prospective land package owned by the company.  “Construction permitting for Cordero will be undertaken in-parallel with the FS work, with the submission of the Environmental Impact Statement (MIA) expected to be made to the Mexican Federal Environmental Department (SEMARNAT) in the first half of 2023. Assuming a 12 to 18 month permitting timeline, this would position the Company to make a construction decision in the second half of 2024.  The 2023 work programs are budgeted at $26 million. The Company is well positioned to fund this work with a cash balance of over $45 million and no debt at the end of 2022. 
  • Oroco Resource Corp., released further assay results from the North Zone drilling program at its Santo Tomas project in Sinaloa. Holes N039 to N043 totalled 2,668 m of drilling which demonstrated continuity of good grade mineralization. Highlights include hole NO39 with 0.14% Cu, 0.002% Mo, 0.01 g/t Au and 1 g/t Ag (0.15% CuEq) over 58m, plus 0.46% Cu, 0.005% Mo, 0.016 g/t Au, and 4 g/t Ag (0.49% CuEq) over 21.4m, plus 0.31% Cu, 0.01% Mo, 0.02 g/t Au and 2 g/t Ag (0.36% CuEq) over 265m; hole NO40 with 0.21% Cu, 0.007% Mo, 0.012 g/t Au, and 2 g/t Ag (0.24% CuEq) over 41m, plus 0.29% Cu, 0.009% Mo, 0.013 g/t Au, and 3 g/t Ag (0.33% CuEq) over 152.1m; hole N041 with 0.3% Cu, 0.002% Mo, 0.003 g/t Au, and 1 g/t Ag (0.35% CuEq) over 20.6m, plus 0.47% Cu, 0.006% Mo, 0.038 g/t Au, and 2 g/t Ag (0.52% CuEq) over 96m; and hole N042 with 0.53% Cu, 0.005% Mo, 0.075 g/t Au, and 3 g/t Ag (0.60% CuEq) over 135m.
  • Prime Mining Corp., presented results from 48 drill holes collared in the Z-T area at its Los Reyes project, Sinaloa. Drilling highlights include holes 22TA-51 with 2.5 g/t Au and 278 g/t Ag (6.1 g/t AuEq) over a true width (TW) of 3,1m, plus 10 g/t Au and 131 g/t Ag (11.6g/t AuEq) over a TW of  3.1m, including 28.5 g/t Au and 310 g/t Ag (32.5 g/t AuEq) over a TW of 1.1m; hole 22ZAP-87 with 4.7 g/t Au and 103 g/t Ag (6 g/t AuEq) over a TW of 8.7m, including 39.6 g/t Au and 174 g/t Ag (41.9 g/t AuEq) over a TW of 0.7m, and 8.6 g/t Au and 163 g/t Ag (10.7g/t AuEq) over a TW of 1.0m; hole 22TA-44 with 2.7 g/t Au and 451 g/t Ag (8.6 g/t AuEq) over a TW of 4.8m, including 4.8 g/t Au and 821 g/t Ag (15.4 g/t AuEq) over a TW of 2.3m; hole 22 ZAP-82 with 1.3 g/t Au and 22 g/t Ag (1.6 g/t AuEq) over a TW of 13m, including 13 g/t Au and 48 g/t Ag (13.6 g/t AuEq) over a TW of 0.8m, plus 3.6 g/t Au and 20 g/t Ag (3.8 g/t AuEq) over a TW of 13.8m,including 22.2 g/t Au and 41 g/t Ag (22.8 g/t AuEq) over a TW of 1.9m; hole 22TA-43 with 4.2 g/t Au and 59 g/t Ag (4.9 g/t AuEq) over a TW of 5.4m, including 23.6 g/t Au and 103 g/t Ag (24.9 g/t AuEq) over a TW of 0.8m; and hole 22SMW-12 with 6.9 g/t Au and 33 g/t Ag (7.3 g/t AuEq) over a TW of 14.8m, including 9.1 g/t Au and 31 g/t Ag (9.5 g/t AuEq) over a TW of 8.9m, including 21 g/t Au and 55 g/t Ag (21.7 g/t AuEq) over a TW of 1.5m.
  • Silver Tiger Metals Inc., released results from its ongoing drilling program being conducted at its El Tigre project, Sonora. Drilling highlights include hole ET-22-333with 0.46 g/t Au, 429 g/t Ag, 0.07% Cu, 0.04% Pb, and 0.06% Zn (474 g/t AgEq) over 10.1m on Seitz Kelly Shale Zone, including 0.83 g/t Au, 3,639 g/t Ag, 0.61% Cu, 0.14% Pb, and 0.14% Zn (3,767 g/t AgEq) over 1.2m, including  0.22 g/t Au, 6,063 g/t Ag, 1% Cu, 0.14% Pb, and 0.09% Zn (6,182 g/t AgEq) over 0.7m; hole ET-22-333 with 0.14 g/t Au, 307 g/t Ag, 0.07% Cu, 0.2% Pb, and 0.2% Zn (337 g/t AgEq) over 2.4m on El Tigre Vein, including 0.32 g/t Au, 778 g/t Ag, 0.17% Cu, 0.4% Pb, and 0.6% Zn (849 g/t AgEq) over 0.9m, plus 0.25 g/t Au, 69 g/t Ag, 0.13% Cu, 0.5% Pb, and 1% Zn over 18.6m on the Seitz Kelly Shale Zone, including 0.25 g/t Au, 778 g/t Ag, 1.69% Cu, 7.1% Zn, and 15% Zn (1,633 g/t AgEq) over 1.1m on the Seitz Kelly Vein; and hole ET-22-335 with 0.15 g/t Au, 331 g/t Ag, 0.24% Cu, 0.2% Pb, and 0.5% Zn (386 g/t AgEq) over 4.3m on Seitz Kelly Vein, including 0.15 g/t Au, 2,343 g/t Ag, 1.67% Cu, 1.36% Pb, and 3.32% Zn (2,658 g/t AgEq) over 0.6m.
  • Sailfish Royalty Corp., announced results from its recently exploration work conducted at its Gavilanes property in Durango. Gavilanes comprises multiple high-grade polymetallic silver veins located approximately 30 km away from First Majestic’s San Dimas mine operation. Sailfish has drilled 47 shallow diamond drill holes on three of these veins which host mineralization in veins and stockworks of an intermediate sulphidation epithermal system. Sailfish geologists have collected representative chip channel samples across veins or structures, which returned encourages high-grade values. Highlights include 12.80 g/t Au and 48 g/t Ag over 2.5m and 0.87 g/t Au and 40 g/t Ag over 18m on Descubridora Vein; 30 g/t Au and 190 g/t Ag over 1m and 0.84 g/t Au and 754 g/t Ag over  2m on San Nicolas Vein; 0.02 g/t Au and 1,867 g/t Ag over 1m on San Nicolas-Veta del Pueblo; 10.12 g/t Au and 16 g/t Ag over 2.2m on Forasteros Vein; and 0.51 g/t Au and 1,546 g/t Ag over 0.51m pon La Cruz Vein. Gavilanes currently has an inferred mineral resource of 2.833M tonnes at an average grade of 246 g/t AgEq (22.4M Oz AgEq). This inferred mineral resource is highlighted by having 18.9M Oz Ag at an average grade of 207 g/t Ag.
  • Silver Viper Minerals Corp., reported positive geophysical and geochemical survey results at its Virginia project, Sonora. Detailed mapping and geochemical sampling following a TITAN MT deep penetrating Geophysical survey conducted in Q2, 2022 identified new targets at El Molino, along the Macho trend. “Geological mapping and rock and chip-channel sampling has outlined new targets at Los Cantiles, El Oriental and the eastern and southern sectors of Macho Libre. The new prospecting area, Los Cantiles, garnered surface chip channel sample results up to 5.7 g/t Au and 148 g/t Ag. Dump samples up to 17.8 g/t Au and 1,001 g/t Ag, and chip-channel samples up to 4.2 g/t Au and 310 g/t Ag, have been located at the El Oriental Target. Hydrothermal silicified breccia with up to 2.36 g/t Au and 71 g/t Ag has been outlined at the Macho Libre Target. At El Molino, several new structures have been outlined, containing breccias with quartz boiling type textures, with initial results up to 1.6 g/t Au and most analytical results pending. At El Molino, ongoing soil sampling reveals continuous gold and silver anomalies, with supportive infill results from north-west to south-east along the trend”.

ON DEALS AND CORPORATE ISSUES

  • Santacruz Silver Mining Ltd., announced the appointment of its new CFO and Corporate Secretary of the Company effective January 9, 2023 (Zimapan property, Hidalgo).
  • Excellon Resources Inc., announced that its Board of Directors has approved the voluntary delisting of its common shares from the New York Stock Exchange (NYSE)and the deregistration with the U.S. Securities and Exchange Commission (SEC) (La Platosa mine, Durango).
  • Fabled Silver Gold Corp´s shareholders approved a share consolidation of the outstanding securities of the Company on an up to ten for one basis. The board of directors of the company has now determined to proceed with the consolidation on a five to one basis.  As of today’s date, the company has 215,446,649 common shares issued and outstanding. Following the completion of the consolidation (but before giving effect to the offering), the number of issued and outstanding common shares of the company will be approximately 43,089,330. (Santa Maria property, Chihuahua).
  • Vizsla Silver Corp., completed strategic investment in the acquisition of Palos Verdes project, Sinaloa from Prismo Metals Inc. Vizsla acquired a right of first refusal to purchase the Palos Verdes project from Prismo, and 4M units of Prismo at a price of $0.50 per Prismo unit, for aggregate consideration of $2M. Each Prismo unit consist of one common share of Prismo and one-half of one common share purchase warrant. Each Prismo Warrant entitles Vizsla to purchase one additional Prismo Share for a period of two years from the closing date at a price of $0.75.The consideration for the Strategic Investment consisted of a cash payment of $500K and the issuance to Prismo of 1M common shares of Vizsla. The Consideration Shares are subject to a statutory hold period of four months and one day, and a voluntary escrow period of 24 months with 25% of the securities released every six months.

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-plane displaying slickensides in a Mn-Fe hydrothermal breccia in a project in Chihuahua, Mexico.  Photo by Miguel A Heredia.

The Mining and Exploration News in Mexico: Highlights on the First Week of January 2023

By Jorge Cirett

During the 1st week of the year (January 2nd to January 8th, 2023), 11 companies working in Mexico released news on their properties. No companies posted on exploration of non-advanced properties, one company posted on Q4 2022 production figures (that’s fast reporting!), no companies reported financing news. Seven companies informed on work at their advanced properties, including three that released drilling results. One mining company is dealing with uncertainty on operation rules, as SEMARNAT insists on not upholding previously emitted permits. Another company informed on an extension to an agreement for the processing of tailings. ON MEXICO ISSUES, no relevant news. ON EXPLORATION, no relevant news. ON MINING, Bear Creek Mining presented production figures for the Mercedes mine in Sonora. ON FINANCING, no relevant news. ON RESOURCES AND DEVELOPMENT, Zacatecas Silver filed a technical report with their initial mineral resource estimate for the Esperanza project in Morelos. Aztec Minerals updated on 2022 work at Cervantes in Sonora, and plans for 2023. GoGold Resources provided an outlook for work at Los Ricos Sur and Los Ricos Norte projects in Jalisco during 2023. Impact Silver released drilling results from two new veins in Zacualpan, Estado de Mexico. Avino Silver released drilling results from the Avino vein in Durango. Bendito Resources is to perform a reverse circulation drilling campaign at several targets on its El Alacrán project in Sonora. Minera Alamos filed a PEA on the Cerro de Oro project in Zacatecas. ON DEALS AND CORPORATE ISSUES, Fortuna Silver received notice from SEMARNAT on the re-assessment of the environmental impact authorization for the San Jose mine in Oaxaca. Xali Gold extended the production earn-in agreement with Sun River on the Tailings Project at El Oro, in Estado de Mexico. ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUES

  • No Relevant News.

ON EXPLORATION

  • No Relevant News.

ON MINING

  • Bear Creek Mining Corp. presented production figures for Q4 2022 from its Mercedes mine in Sonora. During the period, 13,710 Oz au, 40.2 K Oz Ag were produced, and a new high-grade vein was discovered at the Marianas zone. “Development work is ongoing in the Marianas, Rey de Oro and San Martin zones. There are approximately 80 meters of development required in Marianas to establish underground drilling station, Bay 5, and prepare for ore production from this zone”. Highlighted core length intercepts comprise 0.8 m @ 89.1 gpt Au, 192 gpt Ag; 3.5 m @ 5.8 gpt Au; 3.6 m @ 13.1 gpt Au in new veins and 0.9 m @ 26.2 gpt Au, 23 gpt Ag in an extension to a known vein.

ON FINANCING

  • No Relevant News.

ON RESOURCES AND DEVELOPMENT

  • Zacatecas Silver Corp. filed a Ni-43-101 compliant technical report supporting the initial mineral resource estimate at the Esperanza project in Morelos. The resources consist of 30.3 M tonnes @ 0.92 gpt Au, 8.6 gpt Ag in pit-constrained measured and indicated resources containing 899 K Oz Au, 8.4 M Oz Ag, and 270 K tonnes @ 1.58 gpt Au, 11.0 gpt Ag in out of pit measured and indicated resources containing 14 K Oz Au, 96 K Oz Ag. Pit-constrained inferred mineral resources stand at 8.3 M tonnes @ 0.86 gpt Au, 14.7 gpt Ag, containing 229 K Oz Au, 3.9 M Oz Ag and out of pit inferred mineral resources stand at 479 K tonnes @ 1.77 gpt Au, 11.8 gpt Ag, containing 27 K Oz Au, 182 K Oz Ag. The resource estimate was calculated with 69,924 m of drilling in 399 holes, of which 341 intersect the modelled resource.
  • Aztec Minerals Corp. updated on work completed in 2022 and its outlook for 2023 at the Cervantes project in Sonora. During the year ownership interest of the Cervantes project was consolidated to 100%, two phases of drilling were completed continuing to expand the area with broad widths of oxide mineralization. For 2023 surface mapping and channel sampling are to be conducted on the first quarter to continue with step out drilling on the California target and additional targets.
  • GoGold Resources Inc. provided an outlook for 2023 at its Los Ricos North and Los Ricos Sur properties in Jalisco. Continued aggressive drilling at Los Ricos South is planned, with the goal of producing an updated mineral resource estimate and a preliminary economic assessment (PEA) including the effects of drilling at the Eagle concession, underground exploration and development and the completion of a pre-feasibility study (PFS). At Los Ricos Norte the company will work to complete the preliminary economic assessment (PEA). GoGold “holds 45 concessions covering over 25,000 hectares in the Los Ricos district”.
  • Impact Silver Corp. released significant results from surface drilling in 2022 at the Royal Mines of Zacualpan area in Estado de Mexico. Core-length results from La Luz and San Antonio greenfields targets with man portable diamond rigs comprise 1.70 m @ 227 gpt Ag, 0.2% Pb, 0.2% Zn; 0.77 m @ 113 gpt Ag, 1.0% Pb, 2.8% Zn; 1.68 m @ 239 gpt Ag; 1.60 m @ 0.6% Pb, 2.5% Zn; 3.85 m @ 0.51 gpt Au, 18 gpt Ag, 0.6% Pb, 2.3% Zn; 1.25 m @ 0.15 gpt Au, 85 gpt Ag, 0.5% Pb, 1.7% Zn; 2.18 m @ 0.30 gpt Au, 38 gpt Ag, 0.3% Pb, 2.0% Zn; 3.50 m @ 1.59 gpt Au, 22 gpt Ag, 0.1% Pb, 1.0% Zn; 2.30 m @ 0.42 gpt Au, 11 gpt Ag, 0.2% Pb, 6.2% Zn; 1.95 m @ 30 gpt Ag, 2.6% Pb, 1.9% Zn; 1.35 m @ 35 gpt Ag, 2.8% Pb, 4.2% Zn; 1.54 m @ 0.24 gpt Au, 24 gpt Ag, 0.4% Pb, 2.8% Zn; 3.0 m @ 1.90 gpt Au, 11 gpt Ag, 0.3% Pb, 0.7% Zn. “Drilling is continuing with IMPACT’s underground rig in the Mina Grande mine located in the Cuchara area and field exploration is continuing on multiple targets”.
  • Avino Silver & Gold Mines Ltd. released drilling results on four holes from below the deepest current level at the Avino mine in Durango. This drilling extends downdip 315 m the Avino Vein, to 800 m of known downdip length to 600 m below the surface. Highlighted true-width drill intervals comprise 16.66 m @ 0.03 gpt Au, 26 gpt Ag, 1.63% Cu (including 8.57 m @ 0.04 gpt Au, 34 gpt Ag, 2.49 gpt Cu); 23.64 m @ 0.06 gpt Au, 23 gpt Ag, 0.34 % Cu; 5.82 m @ 0.23 gpt Au, 22 gpt Ag, 0.36% Cu; 1.10 m @ 2.46 gpt Au, 9 gpt Ag, 0.3% Cu; 3.0 m @ 0.38 gpt Au, 13 gpt Ag, 0.72% Cu. An updated mineral resource estimate is scheduled for Q1 2023. “The Property contains numerous low-sulphidation epithermal veins (including the Avino vein), breccias, stockworks, and silicified zones that grade into a possible ´near porphyry´ environment within a large caldera setting…… The direction of the increasing copper grade plunges towards the east in the Avino vein. The changing tenor of the mineralization could be reflecting a transition from epithermal to porphyry-style mineralization”.
  • Bendito Resources Inc. is to commence drilling on the second week of the year at its Alacrán project in Sonora. Approximately 2,000 m of reverse circulation drilling on the southern extension of Loma Bonita (Au) and Mesa de Plata (Ag) towards the San Simón target, with some copper targets also to be tested. “The additional drilling on Gregors will help with the understanding of the copper mineralization and the porphyry to-epithermal transition interpreted for Alacrán…. Phase 1 drilling program is designed to target geophysical anomalies derived from induced polarization, EM and magnetic helicopter surveys that indicate the presence of sub-horizontal silica layers with steeply dipping and high-grade hydrothermal breccia feeders”. Other goals include the step-out drilling near previous high-grade copper intercepts on chalcopyrite rich hydrothermal breccia.
  • Minera Alamos Inc. filed the preliminary economic assessment (PEA) and mineral resource estimate for the Cerro de Oro project in Zacatecas. The project envisages an 8.2 year mine life on initial mineable 59 M tonnes @ 0.37 gpt Au, mined at 20 K tonnes per day to produce 60 K Oz Au per year during the first four years and a total of 477 K Oz Au on the mine life, with an average all-in sustaining cost (AISC) of US$873 per Oz Au. Other figures include a waste/ore ratio of 0.3, a pre-production cost of $28.1 M and an 11 months payback period. 

ON DEALS AND CORPORATE ISSUES

  • Fortuna Silver Mines Inc. reports that it has received notice of a resolution by SEMARNAT (Environmental Regulator) on which informs that SEMARNAT is re-assessing the 12-year extension to the environmental impact authorization for the San Jose mine in Oaxaca, granted in December 2021. “Subsequent to the grant of the EIA Extension on December 16, 2021, SEMARNAT suggested that it had made a typographical error in the EIA Extension and that the correct term was two years……. Minera Cuzcatlan initiated legal proceedings to challenge and revoke the alleged typographical error, and on November 7, 2022, the Company announced that the Mexican Federal Administrative Court had issued a judgment in favour of the Company and re-confirmed the term of the EIA Extension for the San Jose Mine for a period of 12 years”.
  • Xali Gold Corp. extended the production earn-in agreement with Sun River Gold Corp. on the El Oro Tailings project in Estado de Mexico, in exchange for additional advanced Net Profits Interest (NPI) payments. The third extension on the expiry date to the end of December 2023 is under the following terms: continuation of advanced NPI payments of US$15 K per month, advanced payments of US$35 K in January 2023, US$50 K in June 2023, US$75 K within 20 days of receiving financing for construction. If an additional 6 months is required and Xali Gold is satisfied with permitting status, then a US$75 K is to be made. As part of the second extension previously granted Xali Gold will also receive advanced NPI payments of US$50 K per month for the first year of commercial operations and 5% NPI payments subsequently, and “the first $1.5M of the Municipality NPI owing to Xali Gold will now be paid during the first 3 years of operation”. The Tailings Project at El Oro contains an inferred resource of 1.27 M tonnes @ 2.94 gpt Au, 75 gpt Ag, containing 119,900 Oz Au, 3.06 M Oz Ag.

ON SOCIAL RESPONSIBILITY

  • No Relevant News.

On the image below: Historic tunnel on a copper project in the Sonoran Desert. Picture by Jorge Cirett.

The Mining and Exploration News in Mexico: Highlights on the Fifth Week of December, 2022.

Ginguro texture in banded quartz vein-breccia

By Miguel A Heredia

During the 52nd week of the year (December 26th to January 1st, 2022), at least 9 press releases were announced by companies working in Mexico, and 1 news published by the media with three disclosing deals and corporate issues, two informing on exploration results, two  reporting resources and developments of their properties, and two announcing financing issues. ON MEXICO ISSUES, Mining in Mexico closed 2022 with more expenses in exploration due to lack of mining concessions. ON EXPLORATION, In Sonora, Tocvan provided an annual summary of the activities carried out in 2022 at its Pilar and Picacho properties. In Chihuahua, Mammoth provided a year-end update on activities developed at its Tenoriba project. Zacatecas Silver provided a summary of the 2022 exploration activities developed at its Zacatecas Silver and Esperanza projects located in Zacatecas and Morelos States respectively. ON MINING, no relevant news. ON FINANCING, Guanajuato Silver closed the first tranche of its non-brokered private placement for gross proceeds of CAD $6.8M (El Cubo, San Ignacio, and Valenciana mines, Guanajuato). Regency completed a non-brokered private placement for gross proceeds of CAD $2,159,000 (Dios Padre Project, Sonora). ON RESOURCES AND DEVELOPMENT, MAG Silver reported that final testing of the downstream power distribution and control systems at its Juanicipio project in Zacatecas is now complete. Zacatecas Silver provided a summary of the 2022 exploration activities developed at its Zacatecas Silver and Esperanza projects located in Zacatecas and Morelos States respectively. ON DEALS AND CORPORATE ISSUES, Sierra Madre provided an update on its proposed acquisition of the La Guitarra mine in the State of Mexico. Gatos Silver provided a bi-weekly default status report in accordance with National Policy 12-203 – Management Cease Trade Orders (Cerro Los Gatos mine, Chihuahua). Mammoth announced the issuance of 2,206,000 common share stock options to directors, officers, and contract employees, exercisable at a price of $0.05 per common share (Tenoriba project, Chihuahua).   ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUE

  • Mining in Mexico closed 2022 with more expenses in exploration due to lack of mining concessions. The current administration of President Andres Manuel Lopez Obrador has not approved new mining concessions, which has led mining companies to invest more in exploration, with a view of finding new deposits in previously granted ground. In 2018, the concessioned area for mining activities in Mexico was of 10.64%, a figure that by the end of this 2022 stands at 8.59%, according to data from the Ministry of Economy.

ON EXPLORATION

  • Tocvan Ventures Corp., provided an annual summary of the activities carried out in 2022 at its Pilar and Picacho properties in Sonora. At Pilar project, the company executed the first core drilling program  which was successful in intersecting broad gold mineralization across the Main Zone with one hole returning 1.2 g/t Au over 116.9m, including 12 g/t Au over 10.2m, an a second hole returning 0.8 g/t Au over 108.9m, including 7.6 g/t Au over 9.4m. “Infill and recognizing drilling at Pilar has confirmed that gold mineralization occurs in at least three parallel zones to the Main Zone across a 600m wide area and so far defined along 600m of strike, the same that based on surface indications and historic workings seems to continue for another 600m towards the southeast”. Column Leach studies from surface material at Pilar returned above regional average recovery for gold, reporting over 85% recovery from initial metallurgical testing. At El Picacho property, surface work outlined key target areas across the large 24 square-km project area. An initial drill program was completed at its San Ramon Prospect, but results are pending to be released. 
  • Mammoth Resources Corp., provided a year-end update on activities developed at its Tenoriba project, Chihuahua. Highlights include the report of the final six drill holes of a 27-hole diamond drill program for a total of 3,244.25m. To date, Mammoth has drill-tested five targets zones within three project areas: El Moreno, Masuparia, and Carneritos, with 55 holes totalling 8,158.25m. “These project areas measure from hundreds of meters to over 1 km in strike length, along a 4km, east-west trend of gold-silver mineralization identified in 3-D modelling incorporating data from over 3,000 soil, chip and channel samples, 26 prior diamond drill holes, geological and structural mapping, and the potential continuity at depth of surface mineralization as indicated by an Induced Polarization/Magnetometer (IP/Mag) geophysical survey”.  The company is currently conducting additional studies on the results of the 27 holes, including metallurgical testing, as well as the assessment by a third party resource modelling expert to recommend drill spacing to estimate a maiden mineral resource at the Tenoriba project. The company is also working on a technical report to communicate findings, conclusions, and recommendation for future work. 

ON MINING

  • No relevant news.

ON FINANCING

  • Guanajuato Silver Company Ltd., issued a total of 15,952,196 units at a price of CAD $0.425 per unit to close the first tranche of its non-brokered private placement for gross proceeds of CAD $6.8M. Net proceeds will be used to ramp up production at the Company’s existing mines in and about Guanajuato, Mexico including El Cubo, San Ignacio and Valenciana, expand and modernize the processing facilities at the Topia mine in Durango, Mexico, increase brownfields’ exploration programs, and fund general and administrative expenses. The closing of a second tranche of the Offering is expected to occur on or about January 12, 2023.
  • Regency Silver Corp., completed a non-brokered private placement of 10,795,000 common shares at a price of CAD $0.20 per share for gross proceeds of CAD $2,159,000. The company paid a finder´s fee of CAD $16K in cash in connection with part of the closing of the private placement.  Net proceeds will be used for work programs on the properties of Regency Silver including drilling and geophysics in early January 2023 on our flagship Dios Padre property, for property payments on other properties of the Company and for general working capital.

ON RESOURCES AND DEVELOPMENT

  • MAG Silver Corp., received confirmation from Fresnillo plc that final testing of the downstream power distribution and control systems at its Juanicipio project in Zacatecas is now complete. The entire system has now been energized and Juanicipio has been connected to the national power grid.
  • Zacatecas Silver Corp., provided a summary of the 2022 exploration activities developed at its Zacatecas Silver project in Zacatecas State, and Esperanza project in Morelos State. At Zacatecas project, the company filed a NI 43-101 technical report to support its initial Mineral Resource Estimate on the Panuco Vein located within the Zacatecas Silver project. After filing the technical report, the company reported multiple high grade silver intercepts from drilling in an area north of the resource, named Panuco North and in an area of the property named El Cristo, which is an extension of the prolific Veta Grande Silver Vein on the Zacatecas Silver Property. At Esperanza project, the company completed an initial Mineral Resource Estimate outlining a high grade oxide gold deposit with significant exploration potential, and reported that a Pre-Feasibility Study is underway to support high margin, high grade, low capex, and low cost production. In addition, the company announced that multiple community programs continue to function and grow, including projects relating to health, education, and environment.

ON DEALS AND CORPORATE ISSUES

  • Sierra Madre Gold and Silver ltd., entered an arm´s length definitive agreement with First Majestic on May 25, 2022 to acquire a 100% interest in the 39,714-hectare La Guitarra mine in the State of Mexico and provided an update on its proposed acquisition. Earlier this month, shareholders voted in favour of a resolution to approve the proposed acquisition of all the issued and outstanding shares of La Guitarra Compañia Minera S.A. de C.V from Corporacion First Majestic, S.A. de C.V., in exchange for 69,063,076 common shares of the company at a deemed price of CAD $0.65 per Consideration Share, having an aggregate value of CAD $44,890,999 (USD $35M). The ordinary resolution with respect to the transaction was approved by 99.99% of the votes cast by shareholders. The transaction has been conditionally accepted by the TSX Venture Exchange.
  • Gatos Silver Inc., provided a bi-weekly default status report in accordance with National Policy 12-203 – Management Cease Trade Orders (MCTO). Pursuant to National Policy 12-203, the company must file bi-weekly status reports in the form of further news releases during the period from the Notice until the MCTO is revoked. “The company reports that since the Notice: (i) there have been no material changes regarding the information contained in the Notice that have not been disclosed in a bi-weekly default status report or in a news release referenced therein; (ii) there have been no failures by the company in fulfilling its stated intentions with respect to satisfying the provisions of the alternative information guidelines under NP 12-203; and (iii) there has not been any specified default subsequent to the defaults announced in the Notice and the news releases dated May 13, 2022, August 5, 2022 and November 11, 2022”.  (Cerro Los Gatos mine, Chihuahua).
  • Mammoth Resources Corp., announced the issuance of 2,206,000 common share stock options to directors, officers, and contract employees, exercisable at a price of $0.05 per common share (Tenoriba project, Chihuahua).

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, ginguro texture in a banded quartz vein-breccia from an intermediate sulphidation epithermal system in a project in Zacatecas, Mexico.  Photo by Miguel A Heredia.

The Mining and Exploration News in Mexico: Highlights on the Fourth Week of December 2022

By Jorge Cirett

During the 51st week of the year (December 19th to December 25th, 2022), 10 companies working in Mexico released news on their properties. One company posted an exploration update on its property, one on financial results for the end of its fiscal year, one informed on a rolling stock plan and another one on the repurchase share plan. One company informed on work at its advanced property. December proved to be a busy month for deals, with four more companies announcing this week the purchase of properties, strategic investments or royalty purchases.  ON MEXICO ISSUES, CAMIMEX presented its third 2022 sustainability report. ON EXPLORATION, in Sonora, Colibri Resource announced plans for a bulk sample program at the Pilar project. ON MINING, GoGold Resources released financial results for the end of its fiscal year. ON FINANCING, Oroco Resource approved a rolling stock plan. Alamos Gold announced its share repurchase plan. ON RESOURCES AND DEVELOPMENT, Guanajuato Silver Company provided drilling results from its Topia mine in Durango. ON DEALS AND CORPORATE ISSUES, Prismo Metals and Vizsla Silver entered into a binding strategic investment agreement. Southern Empire Resources announced the staking of a large property in Durango, and the staking of additional ground adjacent to one other project, also in Durango. Silver Viper Minerals and Canasil Resources extended the date for the definitive agreement on their merger/acquisition. Metalla Royalty & Streaming announced a royalty purchase agreement concerning the silver stream from the Esperanza project in Morelos. ON SOCIAL RESPONSIBILITY, The Esperanza project in Morelos incorporates the sustainable development concept, promoted on the UN’s 2030 agenda.

ON MEXICO ISSUES

  • CAMIMEX (Cámara Minera de Mexico) presented its third report on sustainability 2022, expanding on actions and results by its affiliates on social, environment and economic matters, as part of its compromise to further the sustainable development of México.     

ON EXPLORATION

  • Colibri Resource Corp. reported that its option partner on the Pilar project in Sonora, Tocvan Ventures Corp. is to complete a bulk sample test at the property. Up to 1,000 tonnes of material will be processed in a neighboring mining company heap leach facilities 25 km west from Pilar. “Total duration of the processing and analysis of the bulk sample is expected to span three to four months. The information provided from the sample will be used for planning in coordination for permitting of full-scale mine and process facilities on-site at Pilar“.

ON MINING

  • GoGold Resources Inc. announced the financial results for the year ending on September 30, 2022. During the period $36.1 M in revenue were generated on the sale of 1.7 M Oz AgEq from its Parral tailings project in Chihuahua; the metal was produced at cash cost $13.35 per Oz AgEq, and an AISC of $18.36. Also, USD$12.3 M of tax recoverable relating to VAT receivable were recovered from the Mexican Federal Government, including $5.1 M in interest.  At the end of the period GoGold balance was $73.3 M in cash and no debt.

ON FINANCING

  • Oroco Resource Corp. shareholders approved a maximum of 10% rolling stock option plan for the company (Santo Tomás, Sinaloa).
  • Alamos Gold Inc. filed and received acceptance from the Toronto Stock Exchange (TSX) for a notice of intention to make a normal course issuer bid, permitting Alamos to purchase for cancellation up to 10% of the company’s public float of the common shares as of December 2022 (Mulatos, Sonora).

ON RESOURCES AND DEVELOPMENT

  • Guanajuato Silver Company Ltd. provided recent drill results from the Topia mine in Durango. The company is focusing on delineating resources and increasing mine life on the La Prieta, Rosario and Dos Amigos structures. Highlighted true width intercepts comprise 0.43 m @ 1.22 gpt Au, 455 gpt Ag, 1.4% Pb, 2.1% Zn; 0.81 m @ 1.38 gpt Au, 42 gpt Ag, 4.0% Pb, 2.0% Zn; 1.09 m @ 373 gpt Ag, 1.3% Pb, 0.4% Zn; 0.50 m @ 1.73 gpt Au, 394 gpt Ag, 0.9% Pb, 0.3% Zn; 0.60 m @ 944 gpt Ag, 9.2% Pb, 4.2% Zn; 1.55 m @ 206 gpt Ag, 1.2% Pb, 2.8% Zn; 0.20 m @ 9.74 gpt Au, 404 gpt Ag, 7.2% Pb, 1.9% Zn; 0.50 m @ 3.98 gpt Au, 808 gpt Ag, 8.1% Pb 4.4% Zn; 1.12 m @ 1.74 gpt Au, 39 gpt Ag, 3.4% Pb, 0.7% Zn; 0.98 m @ 4.48 gpt Au, 107 gpt Ag, 8.0% Pb, 13.7% Zn; 1.15 m @ 3.38 gpt Au, 2,173 gpt Ag, 6.7% Pb, 12.9% Zn. “Epithermal mineralization at Topia exists as a system of narrow, high-grade veins measuring up to 1.50m in thickness and occurring within an undulating band of mineralized material that ranges vertically from 100m to 200m, within a lateral extension continuing for several kilometers”.

ON DEALS AND CORPORATE ISSUES

  • Prismo Metals Inc. entered into a binding strategic investment agreement with Vizsla Silver Corp. Pursuant to the agreement Vizsla is to acquire C$2 M in shares of Prismo, and will have the right of first refusal to purchase the Palos Verdes project from Prismo. Once the investment is complete, Vizsla will own 10.1% of Prismo on a basic basis and 14.4% on a partially diluted basis.
  • Southern Empire Resources Corp. announced the staking of the 23,750 hectare La Loma property in Durango, located 50 km SE from its San Pedro project. The property covers Mesozoic sedimentary rocks with Au-As-Sb-Mo-Pb anomalies in stream sediment samples by the Servicio Geológico Mexicano (SGM). Planned exploration work for the spring of 2023 includes stream sediment sampling, prospecting and geological mapping. The company also expanded the optioned 600 ha Centauro property in Durango by staking two claims totaling 3,832 ha. The new claims cover areas of silica and kaolinite alteration, as identified with hyperspectral satellite images. “These suites of probable alteration mineralization are often spatially associated with “Carlin-style” and/or low sulphidation epithermal gold mineralization observed at Centauro to date”.
  • Silver Viper Minerals Corp. entered into an agreement to amend the non-binding letter of intent with Canasil Resources Inc. with respect to the proposed acquisition of all of the issued and outstanding shares of Canasil, in exchange for common shares of Silver Viper, extending the date to enter into a definitive agreement from December 20, 2022 until January 31, 2023 (La Virginia, Sonora; Esperanza, Zacatecas).
  • Metalla Royalty & Streaming Ltd. announced a royalty purchase agreement with Alamos Gold Corp., pursuant to which Metalla will acquire from Alamos Gold one silver stream and three royalties for $5 M of common shares of Metalla. The portfolio adds a silver stream on the Esperanza Gold project in Morelos, which is being advanced by Zacatecas Silver Corp. The project envisions the mining by open pit of an oxidized Au-Ag skarn to produce 111 K Oz Au and 225 K Oz Ag per year. “Metalla will acquire the 20% silver stream on Esperanza subject to ongoing payments of 20% of silver spot price. The stream is subject to a maximum of 500 K Oz silver delivery if commercial production occurs prior to 2029. Metalla will also acquire the right of first refusal on future royalty and stream financing for the Esperanza project”.

ON SOCIAL RESPONSIBILITY

  • Camimex informed that the Esperanza mining project in Morelos, on the grounds of the San Agustín Tetlama community incorporates the sustainable development concept, promoted on the UN’s 2030 agenda, with social, environmental, cultural and economic procurement plans.

On the image below: Underground historic workings scanning by geologist Abraham López with an iPhone on a project in the Sonoran Desert. Picture by Jorge Cirett.

The Mining and Exploration News in Mexico: Highlights on the Third Week of December, 2022.

Panning gold in a cow´s horn

By Miguel A Heredia

During the 50th week of the year (December 12th to December 18th, 2022), at least 20 press releases were announced by companies working in Mexico with six informing on exploration results, five  reporting resources and developments of their properties, five announcing financing issues, two commenting on Mexican issues, and two disclosing deals and corporate issues. ON MEXICO ISSUES, Trafigura announced that along with eFactor Network and a number of financing institutions are piloting a Sustainable Supply Chain Finance Program for mining companies in Mexico.  GR Silver, Vizsla, Mammoth, GoGold, and Almadex   reported the best drilling intercepts in Mexico on the third week of December, 2022. ON EXPLORATION, In Sonora, Aztec released final results from its 2021-2022 drilling program at its Cervantes project, and Minaurum provided an update on its optioned Adelita project. In Chihuahua, Mammoth presented results from six holes from its 27 holes diamond drilling program at its Tenoriba project, and Southern Empire has initiated the field exploration program work on its recently optioned Centauro property.  In Coahuila, Monumental completed reconnaissance exploration program and defined drill targets at its Jemi Rare Earth Element project.  In Jalisco, Almadex released results from the second hole drilled in 2022 at its San Pedro project. Minaurum provided and update on its optioned Taviche mining property.  ON MINING, no relevant news. ON FINANCING, Guanajuato Silver announced a non-brokered listed issuer financing exemption private placement for gross proceeds of CAD $7.5M, subject to a minimum offering for gross proceeds of CAD $3M (El Cubo, San Ignacio, and Valenciana mines, Guanajuato).  Prismo Metals closed its previously announced brokered private placement for gross proceeds of $3,016,000 (Palos Verdes project, Sinaloa). Tarachi announced a non-brokered private placement for gross proceeds of up to CAD $500K (Magistral Mill and tailings project, Durango). Fortuna announced that it has amendment its existing senior secured revolving credit facility to increase the maximum facility amount by USD $50M to USD $250M (San Jose Mine, Oaxaca). Regency Silver announced a non-brokered private placement for gross proceeds of CAD $2M (Dios Padre Project, Sonora). ON RESOURCES AND DEVELOPMENT, GoGold presented results of nine holes from its ongoing drilling program at its Los Ricos North project, Jalisco. GR Silver announced additional results from its 2022 underground infill drilling program at its Plomosas mine area in Sinaloa. Vizsla Silver Corp., released results from nineteen new drill holes targeting the Tajitos-Copala resource area at its Panuco project, Sinaloa. Tocvan announced plan to collect a bulk sample from its El Pilar project in Sonora. Silver Dollar reported progress on its new underexplored Noria target at its La Joya project, Durango. ON DEALS AND CORPORATE ISSUES, Osisko Development strengthened its Board of Directors with the appointment of a new Non-Executive Director, effective December 14, 2022 (San Antonio Gold project, Sonora).  Sierra Metals completed voluntary delisting from the Lima Stock Exchange (Cusi and Bolivar mines, Chihuahua). Southern Empire entered into an option agreement to acquire 100% interest in the Centauro property in Chihuahua.  ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUE

  • Trafigura Pte Ltd., announced that along with eFactor Network and a number of financial institutions are piloting a Sustainable Supply Chain Finance Program for mining companies in Mexico.  The Program, the first of its type and providing a model that can be scaled across the region, is structured to improve mining companies’ working capital whilst driving responsible sourcing practices along the metals value chain.
  • GR Silver Mining Ltd., Vizsla Silver Corp., Mammoth Resources Corp., GoGold Resources Inc., and Almadex Minerals Ltd., reported the best drilling intercepts in Mexico on the third week of December, 2022. Details are shown in the table below:

ON EXPLORATION

  • Aztec Minerals Corp., released final results from its 2021-2022 drilling program at its Cervantes project. The 2022-2022 drilling program consisted of 27 RC totaling 5,249m, and 11 oriented core totaling 2,558.5m for a total combined amount drilled of 7,837.5m in 37 drill holes on the California Zone, California Norte, Jasper, and Purisima Este targets. It was successful in intercepting strong mineralization, as well as in expanding the targets.  “The multi-element ICP values support the exploration model of the California zone being at the highest portion of a porphyry system, where an overlying high sulfidation zone has been eroded away”. Results of this drilling program are currently being analyzed in order to refine future targeting.
  • Minaurum Gold Inc., provided an updated on its Adelita project in Sonora, which is under an option agreement with Infinitum Copper Corp. Infinitum has identified five main target areas of which Cerro Grande is being drilled and plans to drill Las Trancas target soon. Significant mineralization has been intersected at Cerro Grande target in hole AD-22-0018 with 1.91% Cu, 2 g/t Au, and 41 g/t Ag over a true width (TW) of 20.6m; and hole AD-22-0019 with 1.01% Cu, 0.52 g/t Au, and 40 g/t Ag over a TW of 32.25m, including 1.68% Cu, 0.83 g/t Au, and 59 g/t Ag over a TW of 17.05m. Cerro Grand Target is a mineralized zone of up to 36m thick, over 250m deep and has a strike 200m.
  • Mammoth Resources Corp., presented results from six holes for a total of 620.7m from its 27 holes diamond drilling program at its Tenoriba project in Chihuahua. Highlights of the drilling include hole TEN21-22 collared on Carneritos Zone with 0.98 g/t Au and 10 g/t Ag (1.12 g/t AuEq) over 3m, and 0.57 g/t Au and 8 g/t Ag (0.68 g/t AuEq) over 10.5m; and hole TEN21 -24 with 1.14 g/t Au and 75 g/t Ag (1.13 g/t AuEq) over 39m, including 5.28 g/t Au and 13 g/t Ag (5.45 g/t AuEq) over 3m, including 1.45 g/t Au and 11 g/t Ag (1.60 g/t AuEq) over 9m, plus 0.46 g/t Au and 2 g/t Ag (0.48 g/t AuEq) over 42m, including 1.21 g/t Au and 5 g/t Ag (1.28 g/t AuEq) over 12m.  These six holes bring the total meters drilled in the recent phase to 3,244.25m in twenty seven holes.
  • Southern Empire Resources Corp., has initiated the field exploration program work on its recently optioned Centauro property. The company contracted PhotoSat Information Ltd  to provide maps of alteration mineral suites typically associated with epithermal precious metal deposits, using their proprietary processing methods for16 band WorldView-3 and high-resolution ASTER satellite optical spectral data. Results of the PhotoSat studies show significant trends highlighting argillic, sericite, and chlorite alteration. Southern also collected 396 soil samples  at 50m spacing along E-W lines, spaced 100-200m apart to cover a zone of prospective alteration and mineralization over 4km strike length. Assays are pending.
  • Monumental Minerals Corp., completed reconnaissance exploration program, which consisted of detailed geological mapping, regional stream sediment sampling, ground radiometric geophysical surveys, and lithogeochemical sampling to delineate discreet drill targets at its Jemi Rare Earth Element project. To date, 37 whole-rock analytic results from rocks collected at the Jemi project of which 11 have returned values greater than 0.15% total Rare Earth Oxide (TREO), including six samples that returned values greater than 0.23% TREO and up to 0.43% TREO. Results for 269 samples are still pending to arrive. Heavy rare earth oxide (HREO) values (include dysprosium (Dy) and terbium (Tb)), ranged between 1614 ppm and 39 ppm in peralkaline pegmatites, averaging 447 ppm. Six samples exceeded 680 ppm, including three that exceeded 830 ppm. Light rare earth oxides (LREO) values including neodymium (Nd) and praseodymium (Pr), returned values up to 0.26% and 0.23%, with values in trend with HREO concentrations suggesting similar REE-hosting phases in the peralkaline rock samples. “Geological mapping has confirmed that samples with the highest TREO and HREO values are from pegmatitic bodies. Three-dimensional airborne magnetics modeling show that surface pegmatite bodies are spatially associated with a numerous larger magnetic anomalies at depth that may represent potential source intrusions. Specific drill locations will target these pegmatites”.
  • Almadex Minerals Ltd., released results from the second hole drilled in 2022 at its San Pedro project in Jalisco.  Hole SP-22-004 intersected 846 /t Au over 1.3m. The current drilling program intends to better understand the orientation and distribution of the breccia zone so that further, more focused drilling can eventually be carried out.
  • Minaurum Gold Inc., provided an updated on its Taviche project in Oaxaca, which is under an option agreement with Fortuna Silver Corp. Fortuna is currently focused on the re-negotiation of surface rights to be followed by drill permits. “Review of historic data and field mapping over the last year identified the possible continuation of the Mezcal Fault for 3km to the northwest.  Drill targeting is in progress along the Mezcal Fault to test for both Mezcal-style gold mineralization and silver bonanza style mineralization associated with jasperoid-related mantos”.  Another goal is to develop additional concepts to test the potential at depth at the Cerro La  Mina Zone where a drill hole encountered 235 g/t Ag and 0.19 g/t Au over 46.3m.

ON MINING

  • No relevant news.

ON FINANCING

  • Guanajuato Silver Company Ltd., announced a non-brokered listed issuer financing exemption private placement of up to 17,647,059 units at CAD $0.425 for gross proceeds of CADS $7.5M, subject to a minimum offering of 7,058,824 units for gross proceeds of CAD $3M. Gross proceeds will be used to ramp up production at El Cubo, San Ignacio, and Valenciana mines in Guanajuato; expand and modernize the processing facilities at the Topia mine in Durango; increase brownfield exploration programs across all company´s projects; and fund general working capital expenses and strengthen Guanajuato Silver’s balance sheet.
  • Prismo Metals Inc., closed its previously announced brokered private placement for gross proceeds of $3,016,000. The gross proceeds will be used to continue drilling at its Palos Verdes project in Sinaloa, and to continue the mapping and sampling at its Pavitos project in Sonora, as well as to conduct an initial diamond drilling program.
  • Tarachi Gold Corp., announced a non-brokered private placement of up to 10M units at a price of CAD $0.05 per unit for gross proceeds of up to CAD $500K. The gross proceeds will be used for exploration, working capital purposes, and for the ongoing development of the Company’s Magistral project in Mexico including, but not limited to, metallurgical test work, final design and permitting.
  • Fortuna Silver Mines Inc., announced that it has amendment its existing senior secured revolving credit facility to increase the maximum facility amount by USD $50M to USD $250M (San Jose Mine, Oaxaca).
  • Regency Silver Corp., announced a non-brokered private placement of 10M common shares at a price of CAD $0.20 per share for gross proceeds of CAD $2M. Net proceeds will be used for work programs including drilling and geophysics in its flagship Dios Padre project, Sonora, as well as for general working capital.

ON RESOURCES AND DEVELOPMENT

  • GoGold Resources Inc., presented results of nine holes from its ongoing drilling program collared at El Favor East deposit within its Los Ricos North project, Jalisco. Highlights of the drilling include hole LRGF-22-140 with 1.39 g/t Au and 139 g/t Ag (3.24 g/t AuEq or 243 g/t AgEq) over 2.5m, plus 0.48 g/t Au and 257 g/t Ag (3.92 g/t AuEq or 294 g/t AgEq) over 13.9m, including 1.84 g/t Au and 960 g/t Ag (14.65 g/t AuEq or 1,099 g/t AgEq) over 3.2m, including 2.96 g/t Au and 2,307 g/t Ag (33.72 g/t AuEq or 2,529 g/t AgEq) over 0.7m; and hole LRGF-22-137 with 0.29 g/t Au and 143 g/t Ag (2.2 g/t AuEq or 165 g/t AgEq) over 61.5m, including 0.66 g/t Au and 300 g/t Ag (4.66 g/t AuEq or 350 g/t AgEq) over 24.3m, including 1.71 g/t Au and 881 g/t Ag (13.46 g/t AuEq or 1,009 g/t AuEq) over 0.7m.
  • GR Silver Mining Ltd., announced additional results from its 2022 underground infill drilling program at its Plomosas Mine Area in Sinaloa. Highlights of the drilling include hole PLIP22-28 with 55 g/t Ag, 8.66 g/t Au, 2.7% Pb, 6.6% Zn, and 0.5% Cu (1,242 g/t AgEq) over a true width (TW) of 6.9m; hole PLI17-26 with 3 g/t Ag, 2.64 g/t Au, 0.1% Pb, and 0.1% Zn (257 g/t AgEq) over a TW of 10.7m; hole PLI22-42 with 43 g/t Ag, 1.96 g/t Au, 1.2% Pb, 2.1% Zn, and 0.3% Cu (369 g/t AgEq) over a TW of 20.9m, including 61 g/t Ag, 4.52 g/t Au, 2.9% Pb, 5.5% Zn, and 0.3% Cu (802 g/t AgEq) over a TW of 7.5m, plus 28 g/t Ag, 3.6 g/t Au, 0.6% Pb, 2.3% Zn, and 0.2% Cu (489 g/t AgEq) over a TW of 10.6m, including 46 g/t Ag, 11.5 g/t Au, 0.2% Pb, 3.7% Zn, and 0.4% Cu (1,263 g/t AgEq) over a TW of 2m, plus 87 g/t Ag, 7.13 g/t Au, 4.4% Pb, 8.3% Zn, and 0.2% Cu (1,184 g/t AgEq) over a TW of 0.8m, plus 42 g/t Ag, 3.90 g/t Au, 0.3% Pb, 1.2% Zn, and 0.2% Cu (479 g/t AgEq) over a TW of 1.7m, plus 28 g/t Ag, 6.05 g/t Au, 0.7% Pb, 1.9% Zn, and 0.1% Cu (695 g/t AgEq) over a TW of 1.5m; hole PLI22-47 with 281 g/t Ag, 2.15 g/t Au, 8.9% Pb, and 6% Zn (970 g/t AgEq) over a TW of 2.4m; and hole PLI22-46 with 44 g/t Ag, 1.9 g/t Au, 11.2% Pb, 10% Zn, and 0.1% Cu (940 g/t AgEq) over a TW of 4.9m, including 64 g/t Ag, 4.02 g/t Au, 19.5% Pb, 17% Zn, and 0.1% Cu (1,659 g/t AgEq) over a TW of 1.9m. “The infill drilling program at the Plomosas Mine Area continues to provide information for the Company to enhance the geological model and confirm the presence of high-grade structures on the hanging wall and footwall of the main mineralized breccia. Gold mineralized zones exceeding 20 m down hole width have been drilled in the current program in both the hanging wall and footwall”.
  • Vizsla Silver Corp., released results from nineteen new drill holes targeting the Tajitos-Copala resource area at its Panuco project, Sinaloa. Highlights of the drilling include hole CS-22-205 with 2,101 g/t Ag and 9.54 g/t Au (2,640 g/t AgEq) over a true width (TW) of 5.30m, including 3,080 g/t Ag and 23.60 g/t Au (4,563 g/t AgEq) over a TW of 0.58m, plus 85 g/t Ag and 0.24 g/t Au (96 g/t AgEq) over a TW of 0.16m; hole CS-22-210 with 425 g/t Ag and 2.31 g/t Au (561 g/t AgEq) over a TW of 15.50m, including 2,710 g/t Ag and 22.30 g/t Au (4,125 g/t AgEq) over a TW of 0.41m, including 1,285 g/t Ag and 7.24 g/t Au (1,716 g/t AgEq) over a TW of 0.54m, including 1,800 g/t Ag and 9.69 g/t Au (2,371 g/t AgEq) over a TW of 0.41m, including 1,630 g/t Ag and 7.34 g/t Au (2,044 g/t AgEq) over a TW of 1.01m; hole CS-22-216 with 626 g/t Ag and 4.48 g/t Au (905 g/t AgEq) over a TW of 8.09m, including 1,250 g/t Ag and 14 g/t Au (2,170 g/t AgEq) over a TW of 0.81m, including 2,230 g/t Ag and 18.1 g/t Au (3,376 g/t AgEq) over a TW of 0.57m, including 1,170 g/t Ag and 7.54 g/t Au (1,631 g/t AgEq) over a TW of 0.75m; hole CS-22-201 with 237 g/t Ag and 1.74 g/t Au (346 g/t AgEq) over a TW of 2.18m, including 427 g/t Ag and 3.22 g/t Au (629 g/t AgEq) over a TW of 1.11m, plus 2,536 g/t Ag and 13.65 g/t Au (3,340 g/t AgEq) over a TW of 1.86m, including 7,740 g/t Ag and 57.6 g/t Au (11,343 g/t AgEq) over a TW of 0.19m, including 6,220 g/t Ag and 27.20 g/t Au (7,742 g/t AgEq) over a TW of 0.43m; and hole CS-22-217 with 1,496 g/t Ag and 6.56 g/t Au (1,862 g/t AgEq) over a TW of 2.71m, including 1,295 g/t Ag and 4.59 g/t Au (1,535 g/t AgEq) over a TW of 0.64m, including 13,118 g/t Ag and 63.7 g/t Au (16,783 g/t AgEq) over a TW of 0.20m. “The infill results support grade continuity in the south-central portion of Copala structure, while resource expansion drilling to the north and southeast continue to highlight mineralization remains open”.
  • Tocvan Ventures Corp., entered into an agreement with a neighboring private mining company for the completion of its first bulk sampling for processing by heap-leach method from its El Pilar project in Sonora. The plan is to process up to 1,000 tonnes of material at a private mining operation less than 25km to the west of Pilar with the aim of providing a more detail account of expected head-grade and recovery percentage of gold. Processing and analysis of this bulk sample is expected to span three to four months. Other goals to accomplish are to continue drilling, update reporting and maiden resource estimate, and permitting for full-scale on-site mine facilities and processing.  
  • Silver Dollar Resources Inc., reported progress on its new underexplored Noria target at its La Joya project, Durango. The company recently completed a ground magnetic survey on the Coloradito area within the Noria portion of the property, which consisted of 14 lines spaced 50-100m and ranging over 1.3km in length for a total of approximately 19.8km of magnetic data.   The geophysics contractor identified 3 relatively well-contrasted and thin magnetic beds striking N150°/N330°, which may underscore, sulphide and ferromagnesian horizons hosted along shear zones.  In addition, a total of 125 rock samples have been collected and submitted to the lab of which 79 samples have been received to date. In one of the targets sample assays returned values up to 291 g/t Ag, 0.8 g/t Au, and 1.2% Zn, while in another one 7 samples returned elevated Zn and Pb, ranging from 0.3-1% and 1.4-6.2% respectively. Further follow-up work is being conducted in the areas where both geophysical and geochemical anomalies have been identified to develop new drill targets.

ON DEALS AND CORPORATE ISSUES

  • Osisko Development Corporation strengthened its Board of Directors with the appointment of a new Non-Executive Director, effective December 14, 2022 (San Antonio Gold project, Sonora).  
  • Sierra Metals Inc., completed voluntary delisting from the Lima Stock Exchange, effective December 15, 2022. Sierra Metals’ common shares will continue to trade on the Toronto Stock Exchange (Cusi and Bolivar mines, Chihuahua).
  • Southern Empire Resources Corp., entered into an option agreement to acquire 100% interest in the Centauro property in Chihuahua. Southern can earn 100% interest by making cash payments totalling USD $750K, issuing 1.5M common shares of Southern Empire and completing work commitment of USD $800K over a five years period. The option agreement include a 3% Net Smelter Return (NSR) and Southern Empire has the right to buy 2% of the NSR for USD $2M.

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, panning gold in a cow´s horn in a low sulphidation epithermal vein system project in Zacatecas, Mexico.  Photo by Miguel A Heredia.

The Mining and Exploration News in Mexico: Highlights on the Second Week of December 2022

By Jorge Cirett

During the 49th week of the year (December 5th to December 11th, 2022), 15 companies working in Mexico released news on their properties. Two companies posted exploration updates on their properties, two more companies informed on private placements, while one signed a concentrate pre-payment facility and two companies updated on work at its advanced properties. On a busy week for deals, four companies announced agreements on the purchase of five properties.  ON MEXICO ISSUES, a tit for tat of declarations between the Secretaría de Economía and Camimex reflected the state of affairs between the government and the mining industry for the last four years. ON EXPLORATION, in Sonora, Colibri Resource recommenced drilling at Evelyn. In Jalisco, Almadex Minerals released drilling results at San Pedro. ON MINING, no relevant news. ON FINANCING, Prismo Metals and Silver Viper informed on their private placements for $3 M and $335 K respectively. Guanajuato Silver Company informed on a new $5 M concentrate pre-payment facility. ON RESOURCES AND DEVELOPMENT, Torex Gold released drilling results from El Limón Sur Deep drilling, including the highest grade-m interval for Mexico so far in the year. Endeavour Silver released a new resource estimate for its La Pitarrilla project in Durango. ON DEALS AND CORPORATE ISSUES, Argonaut Gold and Heliostar Metals signed agreements for the purchase of the Ana Paula and San Antonio projects, in Guerrero and Baja California Sur respectively. Prime Meridian Resources optioned the Chuin project in Sonora from private vendors. Capitan Mining optioned from Fresnillo PLC a mining concession adjacent and in projection of mineralization at its Cruz de Piedra project in Durango. Golden Tag Resources is to acquire First Majestic Silver’s La Parrilla project in Durango. ON SOCIAL RESPONSIBILITY, one company informed on the receipt of an award in environmental and sustainability compliance.

ON MEXICO ISSUES

  • According to IMSS (Instituto Mexicano del Seguro Social) there are 421,833 mining industry direct employees in Mexico, same that in 2021 generated 2.5% of the GDP, or 34,782 million pesos (US$16.5 billion dollars). The country is within the ten top producers of fluorite, sodium sulfate, wollastonite, celestite, lead, molybdenum, barite, diatomite, magnesium sulfate, zinc, salt, gypsum, cadmium, gold, feldspar and copper, and the top silver producer during the last 13 years. Workers in the industry earn an average of 23,366 pesos per month.     
  • Camimex (Cámara Minera de México) expects Mexico’s investment in mining to surpass US$5 billion (5,000 million pesos). Jaime Gutiérrez, president, pointed that it occurs under the contrast of high metal prices and national policy regulatory hurdles. Karen Flores, director, expressed that the risk in mining is major in exploration, diminishing as the project advances to the mining stage. Another obstacle is the discretionary granting of permits, highlighting the need of a clear and objective decision-making process. Stressed also was the need to have public policies that favor the investments in clean energies, as these are crucial for the competitiveness of the country.
  • Raquel Buenrostro, head of the Economy Secretariat (Secretaría de Economía or SE) indulged herself in a barrage of accusations to the mining industry, pointing that it pays nearly zero taxes in proportion to its earnings, and is one of the industries with more corruption related to the Secretaría de Economía. She indicated that this is one of the reasons why the government has not granted mining concessions for the last four years, further adding that mining companies are no innocent entities, having problems the World around. “After hydrocarbons, the strongest smuggling is that of mining” she stressed, “more than textiles, shoes and clothing”. According to her numbers, mining companies pay 0.002% of its total earnings, compared to 2.4% of major contributors or between 30 and 35% for employees. She also commented on the case of a foreign company that using a twisted argument decided not pay taxes for ten years, while the case if reviewed by the Supreme Court. “Concessions, concessions and concessions were granted, some without complying with the law, some granted more than once, and those who have concessions do not comply with the obligations that should be covered…. the problem of corruption is strong, and I believe that this is one of the areas with biggest corruption problems in the Secretaría de Economía (Note of editor. The points of view of Raquel Buenrostro mimic those of the president, Andrés Manuel López Obrador, which is strongly critical of all private industries, including mining. More than a decade ago, while bidding for the presidency, he had expressed that no mining concessions were to be issued under his term. He’s true to his word, at least in this respect).
  • Camimex (Cámara Minera de México) replied to Raquel Buenrostro, Secretary of Economy (See above) that the companies affiliated to the entity comply in time with its fiscal obligations, including special taxes that only miners pay. The mining industry conveys more resources for the federal coffers than other productive sectors, according to information from the Secretaría de Hacienda y Credito Público. Camimex argues that its enterprises generate more than 400 K direct jobs, and 2.6 M indirect jobs, with an average salary that is 37% higher than the national one. Also, studies by UNAM (Universidad Autónoma de México) show that the municipalities and localities with mining activity have greater levels of economic and human development than the national average. The letter ended “We miners are proud of our activities, the responsible and committed companies in Camimex will continue contributing to the economic development and social wellbeing in the country. We reiterate our commitment and absolute will and interest to establish the dialogue and collaboration with the authorities that are conducive to the strengthening of the sector and the country”.

ON EXPLORATION

  • Colibri Resource Corp. re-commenced phase-2 reverse circulation drilling at the Evelyn property in Sonora. Five holes are planned with 2,000 m of drilling to test induced polarization targets from the 2021 geophysical survey, a second objective is to explore under extensive alluvial cover drilling a number of short holes and sample the top of the bedrock. A soil sampling program has been recently completed, and samples sent for “Gas Soil Hydrocarbon” testing.
  • Almadex Minerals Ltd. released drilling results from its first hole at the San Pedro project in Jalisco. The highlighted core length interval is 4.51 m @ 657 gpt Ag, 0.03 gpt Au (including 2.0 m @ 1,090 gpt Ag, 0.07 gpt Au). Almadex describes a breccia with silicified fragments in sericitic alteration, with galena and sphalerite occurring in the matrix and in fragments. These characteristics point to an intermediate sulfidation epithermal system, although other options have not been ruled out at this stage. “The San Pedro project covers a large area of acid sulphate alteration, including zones previous described as vuggy silica. Recent Terraspec analysis indicates sericitisation superposed on propylitic alteration in the mineralised zones with acid sulphate alteration occurring at the north”.

ON MINING

  • No Relevant News.

ON FINANCING

  • Prismo Metals Inc. announced that the private placement for up to $3 M has been fully allocated.  (Palos Verdes, Sinaloa).
  • Guanajuato Silver Company Ltd. signed a new concentrate and pre-payment facility with Ocean Partners Ltd., to provide a US$5 M revolving credit facility for operating and working capital purposes. GSilver also completed its previously announced shares-for-debt transaction to settle C$1.13 M (El Cubo, Guanajuato).
  • Silver Viper Minerals Corp. closed the first tranche of its $2 M private placement announced in November, for aggregate gross proceeds of $334.6 K (La Virginia, Sonora).

ON RESOURCES AND DEVELOPMENT

  • Torex Gold Resources Inc. reported assays results from step-out and infill drilling at El Limón Sur, targeting underground mineralization as well as open pit mill feed at its El Limón Guajes mine complex in Guerrero. Highlighted core length results comprise 15.96 m @ 87.60 gpt Au, 15 gpt Ag; 0.15% Cu (including 4.46 m @ 163.51 gpt Au, 21 gpt Ag and 3.82 m @ 166.94 gpt Au, 23 gpt Ag, 0.20% Cu); 22.81 m @ 25.31 gpt Au, 122 gpt Ag, 3.45% Cu (including 3.00 m @107.63 gpt Au, 259 gpt Ag, 6.18% Cu); 20.52 m @ 9.49 gpt Au, 63 gpt Ag, 0.21% Cu; 18.72 m @8.10 gpt Au, 24 gpt Ag, 0.95% Cu; 9.90 m @ 15.19 gpt Au, 43 gpt Ag, 0.56% Cu; 17.85 m @ 13.39 gpt Au (including 2.25 m @ 90.05 gpt Au); 7.70 m @ 22.99 gpt Au, 8 gpt Ag, 0.18% Cu; 3.99 m @ 43.24 gpt Au, 25 gpt Ag. These strong results add the El Limón Sur Deep to the previously identified potential mining front at Sub-Sill South. “The style of mineralization at El Limón Sur Deep is like Sub-Sill and ELD, and is characterized by gold, with locally high silver and copper grades. Gold occurs in variably sulfidized, pyrrhotite-rich skarn, while silver and copper mineralization is controlled primarily by the degree of sulfidation of the host skarn. Mineralization is mainly associated with retrograde alteration characterized by the occurrence of phlogopite, amphibole, chlorite, calcite and lesser amounts of quartz and epidote, and local magnetite”.
  • Endeavour Silver Corp. filed a NI-43-101 technical report with a resource estimate for the recently acquired (July 2022) La Pitarrilla project in Durango. Total indicated resources, open pit and underground, oxide and sulfide, stand at 158.6 M tonnes @ 96.4 gpt Ag, 0.31% Pb, 0.74% Zn, containing 491.6 M Oz Ag, 1.1 billion Lb Pb, 2.6 billion Lb Zn or 693.9 M Oz AgEq. Inferred resources, open pit and underground, oxide and sulfide, comprise 35.4 M tonnes @ 87.2 gpt Ag, 0.36% Pb, 0.85% Zn, containing 99.4 M Oz Ag, 281 M Lb Pb, 662 M Lb Zn or 151.2 M Oz AgEq.

ON DEALS AND CORPORATE ISSUES

  • Argonaut Gold Inc. entered into a binding purchase agreement with Heliostar Metals Ltd. for the sale of the Ana Paula project in Guerrero. The deal involves a cash payment of US$10 M at closing, US$5 M in Heliostar shares when either an extension to the current mining permit or a new underground mining permit is granted, US$2 M on the completion of a feasibility study (FS), US$3 M in cash and US$2 M in shares on construction announcement and US$5 M in cash and US$3 M in Heliostar shares on announcement of commercial production.
  • Argonaut Gold Inc. entered into an option agreement with Heliostar Metals Ltd. for the sale of the San Antonio project in Baja California Sur. Heliostar is to pay Argonaut US$80 M if the gold price is below $1,800 per ounce for the six months preceding the exercise of the option, US$120 M if the price is in the US$1,800 to US$2,000 per ounce range in the same period, or US$150 M if the gold price is above US$2,000 per ounce in the said period. A 2.0% NSR is to be paid to Argonaut if the option is exercised. The term of the option is for three years, that can be extended for 18 months if Heliostar is able to acquire an environmental permit from SEMARNAT, the environmental regulator (Note of editor. – which is unlikely to occur on this presidential term, ending in 2024).
  • Prime Meridian Resources Corp. executed two letters of intent for the option to purchase up to 100% interest in the 3,792-hectare El Chuin copper project in Sonora. The project encompasses an interpreted porphyry copper target, with small scale mine workings developed in veins, disseminations and replacement style mineralization. The main target areas are Samaniego, La Gloria and Nogales. The option envisages the payment of US$30 K on year one, US$50 K and 250 K shares on year two, US$50 K and 500 K shares on year three, US$50 K and 1 M shares on year four and US$50 K and 1.5 M shares on year five, for a total of US230 K and 3.25 M shares, plus US$2.22 M of investment on the property. The current property owner retains a 1% NSR that can be bought for US$1.5 M. A second purchase option requires the payment prior to the 5th year anniversary of US$250 K for the La Gloria concession, US$250 K for La Gloria II concession and US$1 M for the Nino Luis concessions. “The El Chuin concessions are currently not in good standing and PMR will be obliged to bring the concessions to good standing. No payments to the vendors will be made prior to obtaining good standing for the concessions”.
  • Capitan Mining Inc. executed an option agreement with Fresnillo PLC to acquire 100% interest in mineral rights to a key property at the Cruz de Plata project in Durango. The high-grade silver trend owned by Capitan is now 2.5 km in length, including extensions and targets on the Jesus Maria, San Rafael, El Tubo, El Refugio and Teresa veins. The optioned land holds 2,000 m of historic drilling in five holes with highlighted core length intervals of 1.0 m @ 233 gpt Ag, 0.1%Pb; 5.2 m @ 185 gpt Ag, 0.29 gpt Au, 0.90% Pb, 1.7% Zn; 29.0 m @ 55 gpt Ag, 0.14 gpt Au, 0.2% Pb, 0.6% Zn (including 1.3 m @ 284 gpt Ag, 0.43 gpt Au, 1.6% Pb, 5.5% Zn); 6.3 m @ 94 gpt Ag, 0.2% Pb, 0.4% Zn; 4.7 m @ 54 gpt Ag, 0.7% Pb, 1.2% Zn; 1.2 m @ 157 gpt Ag, 0.12 gpt Au, 1.1% Pb, 3.3% Zn. The deal involves a 3-year exploration agreement for the “Casco U” mining concessions, for a total of US$1.0 M over the period and 1% NSR which can be bought for US$1 M.
  • Golden Tag Resources Ltd. entered into a definitive agreement with First Majestic Silver Corp. to acquire 100% interest on La Parrilla project in Durango. The property covers 69,478 hectares, with five underground mines, an open pit and a processing plant comprising parallel 1,000 tpd flotation and 1,000 tpd cyanidation leach circuits where oxide and sulfide ores can be processed. There are 9.5 M Oz AgEq in measured and indicated historical resources and 12.5 M Oz AgEq in inferred resources. In consideration for the purchase Golden Tag will issue First Majestic US$20 M in Golden Tag shares, and US$2.7 M in the first 18 months, US$5.75 M (cash or shares) when either 5 M Oz AgEq of reserves or 22 M Oz AgEq of measured and indicated resources are declared. And US$5.05 M (cash or shares) when a new zone with a NI-43-101 report holding more than 12.5 M Oz AgEq is announced. After closing First Majestic will have the right to maintain its pro-rata interest in Golden Tag, up to 19.9% of shares.

ON SOCIAL RESPONSIBILITY

  • Hecla Mining Co. received the 2022 Environmental and Sustainability Excellence Award for its San Sebatian mine in Durango. The award by the American Exploration & Mining Association (AEMA) is in recognition by the company’s strong commitment to the highest environmental and sustainability standards.

On the image below puzzling boudin like siliceous bands in limestone on a project in the Sonoran Desert. Picture by Jorge Cirett.

The Mining and Exploration News in Mexico: Highlights on the First Week of December, 2022.

Drill core displaying ginguro bands

By Miguel A Heredia

During the 48th week of the year (November 28th to December 04th, 2022), at least 20 press releases were announced by companies working in Mexico, and 7 news published by the media with seven reporting resources and developments of their properties, seven commenting on Mexican issues, five disclosing deals and corporate issues, three communicating production and financial results, three announcing financing issues, one informing on exploration results, and one discussing social issues. ON MEXICO ISSUES, Altos Hornos de Mexico assured that the power outage at its plants is an act of bad faith derived from charging millions of dollars to Federal Electricity Commission (CFE) for illegal cancellation of coal supply. The Secretariat of Economy identified 159 mining companies with foreign capital operating in 26 states of Mexico (mostly juniors and exploration) in 2021. According to the Mexican Mining Chamber (CAMIMEX), Newmont, Industrias Peñoles and Fresnillo operated the main zinc mines in Mexico in 2021. Maria Luisa Albores, the Secretary of the Environment and Natural Resources (SEMARNAT) informed deputies, in a very unfortunate statement, that the federal government will not grant more authorizations for open-pit mining due to the negative impacts on the environment and human health. Grupo Mexico maintained its position as the largest copper producer in Mexico, adding a total of 1.25 B Lb Cu in 2021.  Prime Mining, Aztec Minerals, GoGold, Vizsla, and Oroco reported the best drilling intercepts in Mexico on the first week of December, 2022. ON EXPLORATION, In Sonora, Aztec Minerals reported results for the last three holes from the recently completed phase 3 drill program at its Cervantes project. ON MINING, Bear Creek reported Q3, 2022 production and financial results from its Mercedes mine in Sonora. Guanajuato Silver reported Q3, 2022 production and financial results from their Mexican operations. Orogen reported Q3 operating and financial results. ON FINANCING, SilverCrest announced that it has refinanced its USD $120M secured project financing facility (Las Chispas project, Sonora). Prime Mining announced a CAD $16.5M bought deal private placement financing, the same that later on was upsized to CAD $18.3M (Los Reyes project, Sinaloa). ON RESOURCES AND DEVELOPMENT, Barksdale reported an initial Resource Estimate at Cerro Verde within its San Javier project, Sonora.  GoGold presented results from its ongoing drilling program at its Los Ricos South property in Jalisco. Oroco released results from seven holes collared in the North Zone at its Santo Tomas project in Sinaloa. Prime Mining announced results from seven holes from its recently completed phase 2 drill program at its Los Reyes project, Sinaloa. SilverCrest announced the completion and final permanent connection to power line for its Las Chispas mine in Sonora. Starcore released its Mineral Resource Estimate and NI 43-101 compliant technical report for its El Creston project in Sonora. Vizsla announced results from seven drill holes targeting the southern extension of the Napoleon Vein at its Panuco project in Sinaloa. ON DEALS AND CORPORATE ISSUES, Canuc signed a comprehensive agreement with the Ejido of San Javier, located in the Municipality of San Javier, Sonora. First Majestic announced the proposed sale of its royalty portfolio to Metalla Royalty for a total consideration of USD $20M. Kootenay announced the appointment of Dale Brittliffe as its new VP Exploration (Columba project, Chihuahua). Riverside received USD $2.5M in cash and 2% royalty from Fresnillo plc for the sale of the Tajitos project, Sonora. ON SOCIAL RESPONSIBILITY, Ricardo Sierra Oteiza, spokesman for the mining company Esperanza Silver de Mexico, stated that gold and silver mining is an activity that has the capacity to accelerate economic processes at the local level, generating employment, encouraging local supply networks, contributing tax revenue to the treasury and contributing to the social and economic development of the communities hosting mining projects, among other benefits.

ON MEXICO ISSUE

  • Altos Hornos de Mexico S.A.B. de C.V. (AHMSA), assured that the power outage at its plants is an act of bad faith derived from charging millions of dollars to Federal Electricity Commission (CFE) for illegal cancellation of coal supply. AHMSA is owned by Mexican businessman Alonso Ancira, who assured that CFE’s actions are unjustifiable because they represented the loss of 4,000 direct jobs and more than 8,000 indirect ones, in addition to having generated disorder in the general coal industry. “These aggressive actions began after the Judiciary accepted a claim for damages for USD $700M for the unilateral and illegal cancellation of the supply of coal for the two generating plants located in Nava, Coahuila,” accused the company. “AHMSA stated that the actions taken by the management of the CFE show that it does not care about harming Coahuila and the people of Coahuila, since our plants located in that entity represent a direct source of livelihood for 17,000 Coahuila families.
  • Karen Flores, General Director of the Mining Chamber of Mexico (CAMIMEX), declared that the Federal Government stops additionally collecting up to MXP $25 B after the suspension of mining concessions and the paralysis of new permits. She explained that the policy of President Andres Manuel Lopez Obrador has halted more than 800 mining projects that only await federal authorization to start operations. “If the projects that are stopped were to start up, we would be talking about MXP $20 to 25 B per year to the federal treasury,” she said. She maintained that only in terms of taxes, the industry entered the public coffers in 2021 more than MXP $60 B and in seven years, MXP $240 B, an amount that could be higher if there were no obstacles in the current legislation.
  • The Secretariat of Economy identified 159 mining companies with foreign capital operating in 26 states of Mexico (mostly juniors and exploration) in 2021. These companies operate 1,209 projects, of which 822 were halted and nine operations reported closing at the end of last year. The mining GDP in Mexico was MXP $865.2 B in 2021, a growth of 1.6% year-on-year, in real terms (based on GDP calculated in constant MXP $ with purchasing power as of December 31, 2013). For their part, mining-metallurgical exports amounted to USD $23,579M in 2021, a figure that meant an increase of 28.1% compared to the previous year. The significant increase in exports allowed that, despite the increase that was also reported in imports, an increase in the positive balance of the mining-metallurgical trade balance of 29.6% was registered and reached a value of USD $11,904M. The positive results in foreign trade in minerals consolidated the mining-metallurgical industry as the fifth source of foreign exchange, surpassing tourism and the agricultural sector, and only behind the automotive industry, the electrical and electronic equipment and machinery industry, remittances and oil exports. The mining sector presented an increase in the contribution to the National GDP, going from 2.3% in 2020 to 2.5% in 2021, and in the Industrial GDP the record went from 8.3% to 8.6% in the study period, according to data from the Mining Chamber of Mexico. Gold remained the main product of the national mining-metallurgical industry in 2021, with a share of 28.4% in the total value of production, followed by copper with 27.7% and silver with 20.4%.
  • According to the Mexican Mining Chamber (CAMIMEX), Newmont, Industrias Peñoles and Fresnillo operated the main zinc mines in Mexico in 2021. Peñasquito, owned by Newmont and located in the state of Zacatecas, leads the ranking, with 245.84K tonnes Zn, then follow two mines of Industrias Peñoles: Velardeña, Durango with 909.68K tonnes Zn, and Tizapa State of Mexico with 40.13K tonnes Zn. The table below shows the Zn production by mine for the year 2021:

The Buenavista Zinc project, in Sonora, is located within the Buenavista facilities and includes the development of a new concentrator to produce approximately 100K tonnes Zn and 20K tonnes Cu per year.

While the project has all the necessary permits, the project budget is USD $413M and is expected to start operations in 2023. As of December 31, 2021, Grupo México had invested USD $217M in this project. When completed, Grupo México anticipates that this new facility will double the company’s zinc production capacity and provide 490 direct and 1,470 indirect jobs. Other notable companies are: Gatos Silver, Minera Frisco and Gold Resource.

  • Maria Luisa Albores, the Secretary of the Environment and Natural Resources (SEMARNAT) informed deputies, in a very unfortunate statement, that the federal government will not grant more authorizations for open-pit mining due to the negative impacts on the environment and human health. When appearing before the joint commissions for the Environment and Natural Resources, and Climate Change and Sustainability of the Chamber of Deputies, the federal official also announced that mining concessions were detected in 68 Protected Natural Areas, “which contravenes the conservation and protection of the territory and its natural resources”. Opposition legislators such as the PAN members questioned the programs of this administration such as “Sembrando Vida”, pointing out that they do not have operating rules that allow their transparency and the energy transition has been aborted, in addition, environmental deforestation is not punished.
  • Grupo Mexico maintained its position as the largest copper producer in Mexico, adding a total of 559.83K tonnes Cu in 2021. The company maintains copper production operations in Sonora, Chihuahua, San Luis Potosí and Zacatecas. With this, the company registered a coverage of 76.3% of the national copper production in 2021. The table below shows the Cu production by mine during 2021:

Prime Mining Corp., Aztec Minerals Corp., GoGold Resources Inc., Vizsla Silver Corp., and Oroco Resources Corp., reported the best drilling intercepts in Mexico on the first week of December, 2022. Details are shown in the table below:

ON EXPLORATION

  • Aztec Minerals Corp., reported results for the last three holes from the recently completed phase 3 drill program at its Cervantes project in Sonora. The most significant drill intercept was encountered in hole CAL22-031, which was collared in the California Zone with 0.87 g/t Au over 28.5m, plus 0.58 g/t Au over 85.5m, including 2.3 g/t Au over 12m. “This drill hole confirms the footwall of the main California Zone mineralization at depth and fills a large gap in the drilling pattern”.

ON MINING

  • Bear Creek Mining Corporation reported Q3, 2022 production and financial results from its Mercedes mine in Sonora. The company mined 126,420 tonnes of 2.92 g/t Au and processed 148,211 tonnes of 2.45 g/t Au with a metallurgical recovery of 95.53% to produce 11,170 Oz Au. Bear Creek sold 14,445 Oz Au at a cash and all-in-sustaining cost per Oz Au sold of USD $995 and USD $1,364 respectively at a realized price of USD $1,729 per Oz Au. The company reported revenues of USD $26.54M from the sale of gold and silver; a net loss of USD $7.7M; cash and cash equivalents and short-term investments as September 30, 2022 for USD $9.6M. Bear Creek plans to mine approximately 600K tonnes of 3.7 g/t Au to produce between 60K and 73K Oz Au in 2023.
  • Guanajuato Silver Company Ltd., reported consolidated Q3, 2022 production and financial results from their Mexican operations (El Cubo and San Ignacio mines in Guanajuato, and Topia mine in Durango). The company mined 107,379 tonnes and milled 107,009 tonnes to produce 329.3K Oz Ag, 3,226 Oz Au, 537.6K Lb Pb, and 677.1 Lb Zn (700.3K Oz AgEq) at cash and all-in-sustaining cost of USD $13.86 and USD $19.53 per Oz AgEq respectively. It sold 311.7K Oz Ag, 2,997 Oz Au, 504.4K Lb Pb, and 273.3K Lb Zn (628.3K Oz AgEq). Guanajuato Silver reported revenue of USD $8.87M; cost of sales of USD $12.2M; mine operating loss of USD $3.34M; net loss of USD $8.4M; and cash on hand of USD $6.36M.
  • Orogen Royalties Inc., reported Q3 operating and financial results. The company reported a net gain from operations of CAD $123.4K or CAD $0.001 per share; revenue of CAD $1.16M from the Ermitaño royalty with 478 attributable Oz AuEq sold at average price of USD $1,728 per Oz Au; net income of CAD $203K from prospect generation activities and recognized  an impairment of CAD $262.1K for projects that have been dropped during the period; general and administrative expenses of CAD $802.1K and a loss of CAD $468K on fair value adjustments of marketable securities due to capital markets volatility. It also reported cash flow from operating activities of CAD $188.5K; cash flow from operating activities excluding changes in non-cash working capital of CAD $10.7M including CAD $3.3M in cash and cash equivalents, and CAD $5.2M in short term investments and no long-term debt.

ON FINANCING

  • SilverCrest Metal Inc., announced that it has refinanced its USD $120M secured project financing facility, of which only USD $90M was drawn with a new USD $120M senior secured credit facility through a syndicate of lenders comprised of The Bank of Nova Scotia and Bank of Montreal (Las Chispas project, Sonora).
  • Prime Mining Corp., announced a CAD $16.5M bought deal private placement financing consisting of 11M units at a price of CAD $1.5 per unit, the same that later on was upsized to CAD $18.3M for the sale of 12.2M units at a price of CAD $1.5 per unit. Gross proceeds will be used to develop and explore its Los Reyes project in Sinaloa and for general corporate purposes.

ON RESOURCES AND DEVELOPMENT

  • Barksdale Resources Corporation reported an initial Mineral Resource Estimate (MRE) at Cerro Verde within its San Javier project, Sonora. The Resource is pit-constrained and considered a base case of USD $4/Lb copper. The table below shows the MRE effective as of October 31, 2022:

Cerro Verde remains open for expansion in most directions and the Mesa Grande and La Trinidad prospects both have historic drilling that indicates the presence of copper mineralization. Barksdale plans to initiate a Preliminary Economic Assessment (PEA) at Cerro Verde that envisions a low-strip copper heap operation to produce cathode copper on site.

  • GoGold Resources Inc., presented results from its ongoing drilling program at its Los Ricos South property in Jalisco. Highlights of the drilling include hole LRGG-22-218 with 3.98 g/t Au and 529 g/t Ag (11.04 g/t AuEq or 828 g/t AgEq) over 15m, including 12.43 g/t Au and 1,626 g/t Ag (34.1 g/t AuEq or 2,558 g/t AgEq) over 4.8m, including 20.32 g/t Au and 2,774 g/t Ag (57.31 g/t AuEq or 4,298 g/t AgEq) over 2.8m, including 37.90 g/t Au and 4,250 g/t Ag (94.57 g/t AuEq or 7,093 g/t AgEq) over 0.9m. Drilling results continue to confirm high grade wide intercepts in the Main deposit on Los Ricos South property.
  • Oroco Resource Corp., released results from seven holes collared in the North Zone at its Santo Tomas project in Sinaloa. Highlights of the drilling include hole NO32 with 0.34% Cu, 0.005% Mo, 0.021 g/t Au, and 2 g/t Ag (0.37% CuEq) over 88.7m; hole NO34 with 0.34% Cu, 0.011% Mo, 0.029 g/t Au, and 3 g/t Ag (0.40% CuEq) over 267m; hole NO35 with 0.37% Cu, 0.006% Mo, 0.042 g/t Au, and 2 g/t Ag (0.42% CuEq) over 220.5m; and hole NO36 with 0.43% Cu, 0.002% Mo, 0.092 g/t Au, and 2 g/t Ag (0.51% CuEq) over 139.6m. “The company has now completed 43 drill holes (28,119 m of drilling) in its 2021-2022 North Zone drilling confirming  good grade mineralization along 1,700 m of strike, demonstrating a westward dipping panel with consistent grades down-dip to about 400-500 m depth below the ridge, bottoming about sea level. The program is nearing completion with the remainder of the program focused on expanding the shallow seated mineralized zone on the hanging wall along the south-west side of the Gradeshell with the continued goal of increasing the resource in this newly identified zone”.
  • Prime Mining Corp., announced results from seven holes from its recently completed phase 2 drill program at its Los Reyes project, Sinaloa. Highlights of the drilling include hole 22GE-118 with 3 g/t Au and 215 g/t Ag over a true width (TW)of 5.5m, including 6.8 g/t Au and 469 g/t Ag over a TW of 1m, plus 6.8 g/t Au and 166 g/t Ag over a TW of 18.3m, including 11.6 g/t Au and 262 g/t Ag over a TW of 9.1m, plus 4.8 g/t Au and 144 g/t Ag over a TW of 2.8m, plus 2.9 g/t Au and 89 g/t Ag over a TW of 7.2m, including 9.9 g/t Au and 231 g/t Ag over a TW of 1.4m, including 2.9 g/t Au and 101 g/t Ag over a TW of 7.2m, including 7 g/t Au and 327 g/t Ag over a TW of 1.4m, plus 2 g/t Au and 72 g/t Ag over a TW of 7.4m, including 2.8 g/t Au and 90 g/t Ag over a TW of 4.4m: hole 22GE-121 with 12.8 g/t Au and 646 g/t Ag over a TW of 1.1m, plus 4.2 g/t Au and 212 g/t Ag over a TW of 12.7m, including 10.2 g/t Au and 547 g/t Ag over a TW of 0.5m, plus 10.9 g/t Au and 765 g/t Ag over a TW of 0.4m, plus 21 g/t Au and 413 g/t Ag over a TW of 0.3m; hole 22GE-122 with 2.2 g/t Au and 54 g/t Ag over a TW of 13.8m, including 9.1 g/t Au and 141 g/t Ag over a TW of 1.1m, plus 8.8 g/t Au and 289 g/t Ag over a TW of 5.6m, including 33.2 g/t Au and 1,072 g/t Ag over a TW of 1.4m; and hole 22GE-120 with 6.8 g/t Au and 207 g/t Ag over a TW of 6.8m, including 12.2 g/t Au and 337 g/t Ag over a TW of 1.5m, plus 23 g/t Au and 495 g/t Ag over a TW of 0.9m, plus 3.5 g/t Au and 75 g/t Ag over 6.7m, including 11.3 g/t Au and 245 g/t Ag over a TW of 0.8m, plus 9.9 g/t Au and 149 g/t Ag over a TW of 0.8m.
  • SilverCrest Metals Inc., announced the completion and final permanent connection of its 33 kilovolt electrical power line for its Las Chispas mine in Sonora. The company also released its inaugural Task Force for Climate Related Financial Disclosure (TCFD) report and a corresponding Water Stewardship report based on conclusions from the TCFD report.
  • Starcore International Mines Ltd., released its pit-constraint Mineral Resource Estimate and NI 43-101 compliant technical report for its El Creston project in Sonora. Measured resources as of September 30, 2022 are 56.3M tonnes of 0.076% Mo and 0.04% Cu for a total of 94.3M Lb Mo and 49.7M Lb Cu and Indicated resources of 142.2M tonnes of 0.067% Mo and 0.08% Cu for a total of 210M Lb Mo and 250.8M Lb Cu. Measured + Indicated resources are 198.5M tonnes of 0.069% Mo and 0.07% Cu for a total of 304.4M Lb Mo and 300.5M Lb Cu.
  • Vizsla Silver Corp., announced results from seven drill holes targeting the southern extension of the Napoleon Vein at its Panuco project in Sinaloa. Highlights of the drilling include hole NP-22-320 with 279 g/t Au, 24.01 g/t Au, 1.8% Pb, and 7.6% Zn (2,305 g/t AgEq) over a TW of 1.55m, including 267 g/t Ag, 29.1 g/t Au, 1.3% Pb, and 7.2% Zn (2,631 g/t AgEq) over a TW of 1.18m, plus 113 g/t Ag, 0.69 g/t Au, 0.6% Pb, and 6.2% Zn (390 g/t AgEq) over a TW of 0.8m, plus 143 g/t Ag, 0.87 g/t Au, 0.6% Pb, and 3.7% Zn (344 g/t AgEq) over a TW of 0.45m; hole NP-22-329 with 886 g/t Ag, 7.44 g/t Au, 2.2% Pb, and 6.8% Zn (1,660 g/t AgEq) over a TW of 0.88m, plus 222 g/t Ag, 2.64 g/t Au, 0.3% Pb, and 1.2% Zn (446 g/t AgEq) over a TW of 6.70m, including 668 g/t Ag, 2.22 g/t Au, 0.5% Pb, and 2.3% Zn (875 g/t AgEq) over a TW of 0.78m, including 159 g/t Ag, 9.14 g/t Au, 0.1% Pb, and 0.2% Zn (815 g/t AgEq) over a TW of 0.78m; and hole NP-22-333 with 54 g/t Ag, 1.22 g/t Au, 0.3% Pb, and 1.6% Zn (203 g/t AgEq) over a TW of 2.1m, plus 378 g/t Ag, 2.53 g/t Au, 0.4% Pb, and 4.3% Zn (696 g/t AgEq) over a TW of 1.50m.

ON DEALS AND CORPORATE ISSUES

  • Canuc Resources Corporation signed a comprehensive agreement for a period of 10 years with rights for renewal for a further 10 year period thereafter, with the Ejido of San Javier, located in the Municipality of San Javier, Sonora. The Agreement covers the Company’s 27 currently held claims and is contemplated to cover any further claims the Company may acquire in the San Javier area. The Ejido leadership at San Javier requested assistance from Canuc to implement controls against disruptive artisanal mining activities taking place locally by artisanal miners who have come to San Javier, but who are not from the area.
  • First Majestic Silver Corp., announced the proposed sale of its royalty portfolio to Metalla Royalty & Streaming Ltd for a total consideration of USD $20M in common shares of Metalla. Total consideration consists of 4,168,056 Metalla shares at a deemed price of USD $4.7984 per share based on a 25-day volume-weighted average price on the NYSE American Exchange having an aggregate value of approximately USD $20.0M. The consideration will be paid upon Closing of the Transaction.
  • Kootenay Silver Inc., announced the appointment of Dale Brittliffe as its new VP Exploration (Columba project, Chihuahua).
  • Riverside Resources Inc., received USD $2.5M in cash and 2% NSR royalty from Fresnillo plc for the sale of the Tajitos project in Sonora. Fresnillo will have, for a four-year term, the option to buy back half of the 2.0% NSR for a payment of USD $1.5M. If enacted, then Fresnillo would have an additional three years to buy back the remaining 1% NSR for another USD $1.5M. If Fresnillo does not exercise its first buy back option during the first four-year term, the Royalty will no longer be subject to any buy back provisions. The NSR covers the entire Riverside land package and a full NSR Agreement has been agreed upon and included in the signed contract between the companies. If Fresnillo wishes to reduce mineral claims, then the Company has the first right to retain those mineral tenures before they are dropped.

ON SOCIAL RESPONSIBILITY

  • Ricardo Sierra Oteiza, spokesman for the mining company Esperanza Silver de México, stated that gold and silver mining is an activity that has the capacity to accelerate economic processes at the local level, generating employment, encouraging local supply networks, contributing tax revenue to the treasury and contributing to the social and economic development of the communities hosting mining projects, among other benefits. In the case of the state of Morelos, in the community of San Agustín Tetlama in the municipality of Temixco, the company Esperanza Silver de México carries out scientific and technical prospecting and exploration studies to prepare the Environmental Impact Statement in search of the due authorizations from the federal government, so that, where appropriate, start the construction phase. If this mining project is consolidated, the Morelos community of San Agustín Tetlama would be expected to become a pole of economic and social development that joins the economic reactivation actions promoted by the government of the state of Morelos and the federal government.

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, drill core displaying ginguro texture in a banded quartz vein from an intermediate sulphidation epithermal vein system in a project in Zacatecas, Mexico.  Photo by Miguel A Heredia.

Mexico’s Best Drilling Intercepts on the First Week of December 2022

Drilling in Sinaloa seems to be a smart choice these days, with three of the five companies with interesting results working projects in the State. Prime’s Los Reyes is a structurally controlled low sulfidation epithermal system, while Vizsla’s Panuco project is a structurally controlled intermediate sulfidation system. Both are advanced projects with defined resources in several structures that run for kilometers. Santo Tomás is one of the largest undeveloped porphyry copper deposits in Mexico.

Aztec’s Cervantes project in Sonora is another porphyry system, gold-copper in this case, with igneous rocks intruding a Paleozoic marine sequence. GoGold’s Los Ricos advanced project in Jalisco is another structurally controlled intermediate sulfidation epithermal system presenting long structures with significant stockwork wall rock dissemination.