Development

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

/ Gambusino Prospector / Leave a comment

By Jorge Cirett                                             

During the 37th week of the year (September 11th to September 17th, 2023), 21 companies working in Mexico posted news releases. Two companies reported exploration advances on their properties, and one company reported quarterly results. Six companies informed on the opening or closing of private placements, their assistance to investor conferences, the amendment of terms on subscriptions and information circulars.  Five companies presented drilling results from their properties, one presented an updated mineral resource for its property, another two presented updated PEAs and three more updated on exploration activities on their projects. One company intends to change name and one other informed on litigation advances against the federal government. ON MEXICO ISSUES, no relevant news. ON EXPLORATION, In Oaxaca, Vortex Metals updated on exploration work in Zaachila. In Zacatecas, Radius Gold commenced drilling at Tropico. ON MINING, Starcore International Mines reported results for its first quarter 2023. ON FINANCING, Colibri Resource informed on the closing of a financing round for US$687 K. Sailfish Royalty declared a quarterly dividend. Fortuna Silver and Regency Silver are to attend investor conferences. Sierra Madre Gold and Silver amended the terms of subscription receipts. Bear Creek Mining updated on the convertible promissory notes for the payment of US$25 M on the acquisition of the Mercedes mine in Sonora. ON RESOURCES AND DEVELOPMENT, Vizsla Silver reported drilling results from Panuco, in Sinaloa. Prime Mining announced expansion drilling results from Los Reyes, in Sinaloa. Silver Tiger Metals presented an updated mineral resource estimate for its El Tigre project in Sonora. GoGold Resources released the updated PEA on Los Ricos Sur project in Jalisco. Gold Resource updated on expansion and infill drilling at its Don David mine in Oaxaca. Alamos Gold released excellent drilling results from two target areas on its Mulatos property in Sonora. Sierra Madre Gold and Silver updated on exploration at recently acquired La Guitarra property in Estado de Mexico. Avino Silver & Gold Mines released results from deep drilling at Avino, in Durango. Orex Minerals informed on hyperspectral alteration studies being carried out at Coneto, in Durango. Golden Minerals filed an updated PEA for Velardeña, in Durango. ON DEALS AND CORPORATE ISSUES, Golden Tag Resources intends to change name to Silver Storm Mining. Almaden Minerals reported the Mexican Federal Administrative Court granted a provisional injunction to Almaden, on its fight to get their mining concessions back into good standing. Argonaut Gold reached an agreement with four ejidos to operate for three more years at El Castillo and San Agustín properties in Durango. ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUES

  • No Relevant News.

ON EXPLORATION

  • Radius Gold Inc. commenced drilling at its Tropico project in Zacatecas. The company envisages a 2,000 m drill program on the hot spring type sinter and breccia pipe system, targeting a “Fresnillo-style” mineralized system at depth, and near-surface bulk mineable gold mineralization on a 450 m by 250 m breccia pipe.
  • Vortex Metals Inc. completed the phase I geologic field program for the environmental study at Zaachila, in Oaxaca. “A total of 13 trenches have been excavated … across exposures of weakly metamorphosed Upper Jurassic sedimentary, volcanic and intrusive rocks where historical surface sampling identified copper mineralization. A total of 387 meters of trench have been cut yielding a total of 271 chip samples” with results pending. Copper mineralization has been observed as malachite, azurite, chalcopyrite and bornite, associated to silica-rich exhalite beds, as quartz-carbonate veinlets cutting silicified and chloritized meta-sediments and volcanics (green schist facies) and as bedded units in the metasediments. “In a few of the less oxidized exposures, sericite was widely observed”.

ON MINING

  • Starcore International Mines Ltd. reported results for its first quarter ended July 31, 2023. At the San Martín Mine in Querétaro, 57.7 K tonnes were milled, averaging 1.14 gpt Au, 14.4 gpt Ag, recovering 84.0% Au, 45.8% Ag, to produce 1,800 Oz Au, 12.3 K Oz Ag, at cash cost $2,158 per Oz AuEq. At the end of the period cash on hand was $5.7 M, and working capital $6.2 M. “Our quarterly production reflects our recent difficulties in reaching our higher-grade ore bodies or stopes….. We expect to achieve our targets over the remainder of the year as we are currently completing the development to the high-grade zones”.

ON FINANCING

  • Sailfish Royalty Corp. declared the company’s third quarterly dividend for 2023, in the amount of US$0.0125 per common share (Gavilanes, Durango).
  • Fortuna Silver Mines Inc. announced it is going to be present at the Gold Forum Americas in Colorado Springs, Colorado (USA), from September 17 to September 20, 2023 (San Jose, Oaxaca).
  • Regency Silver Corp. announced its chairman is to be present at the 2023 Kinvestor Days Virtual Conference on September 19, 2023 (Dios Padre, Sonora).
  • Colibri Resource Corp. closed a second and final tranche of its non-brokered private placement, for gross proceeds of US$200 K, which combined with the first tranche proceeds total US$687 K (Evelyn, Sonora).
  • Sierra Madre Gold and Silver Ltd. amended the terms of 5.12 M subscription receipts in order to extend the escrow release conditions and termination for an additional 30-day period (La Guitarra, Estado de México).
  • Bear Creek Mining Corp. updated on the convertible promissory note intended to be issued to defer a US$25 M current liability originally payable to a wholly-owned subsidiary of Equinox Gold Corp. and is issuing an amendment to its management information circular dated August 9, 2023. “The Company further announces that it has closed an unsecured and non-convertible demand loan (the “Loan”) from EquinoxGold in the amount of US$1.3 million, the proceeds of which will be used for working capital purposes and further optimization of the Mercedes Mine”. The amendment refers to an exemption of formal valuation requirement described on section 5.5(b) of Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (Mercedes, Sonora).

ON RESOURCES AND DEVELOPMENT

  • Vizsla Silver Corp. reported results from 13 new holes targeting the La Luisa vein on its Panuco project, in Sinaloa. Highlighted true-width intervals comprise 11.20 m @ 7.14 gpt Au, 229 gpt Ag 0.3% Pb, 1.6% Zn; 8.90 m @ 2.85 gpt Au, 61 gpt Ag, 0.1% Pb, 2.2% Zn (including 0.77 m @ 10.35 gpt Au, 98 gpt Ag, 0.4% Pb, 15.8% Zn); 7.70 m @ 1.90 gpt Au, 67 gpt Ag, 0.7% Pb, 0.3% Zn (including 0.54 m @ 12.35 gpt Au, 250 gpt Ag, 5.6% Pb, 10.4% Zn and 1.08 m @ 1.48 gpt Au, 171 gpt Ag, 1.6% Pb, 11.2% Zn); 5.00 m @ 2.49 gpt Au. 155 gpt Ag, 0.9% Pb, 4.5% Zn. 8.85 m @ 0.98 gpt Au, 67 gpt Ag, 0.1% Pb, 1.0% Zn; 1.16 m @ 1.12 gpt Au, 76 gpt Ag, 0.2% Pb, 14.9% Zn. To date Vizsla Silver has reported 33 holes from La Luisa outlining a mineralized footprint 700 m long, 400 m down dip and 3.07 m in width, averaging 175 gpt Ag, 3.40 gpt Au, 0.28 % Pb, 1.33 % Zn (or 449 gpt AgEq).
  • Prime Mining Corp. reported expansion drill results from Los Reyes project in Sinaloa. “This drilling targeted areas extending materially beyond the mineral resource envelope at the Z-T, Guadalupe and Central Zones” which are the ones with defined resources. Highlighted true width intervals comprise 20.50 m @ 3.16 gpt Au, 55 gpt Ag (including 4.0 m @ 9.71 gpt Au, 85 gpt Ag); 2.20 m @ 10.10 gpt Au, 264 gpt Ag (including 1.20 m @ 17.80 gpt Au, 437 gpt Ag); 0.95 m @ 18.20 gpt Au, 2,024 gpt Ag; 1.0 m @ 5.47 gpt Ag, 615 gpt Ag.
  • Silver Tiger Metals Inc. announced an updated Mineral Resource Estimate for its El Tigre project in Sonora. “A total of 482 drill holes (124,851 metres) and 3,160 surface and adit channel samples (6,473 metres) were used in the Mineral Resource Estimate”, which includes the South Zone In Pit, South Zone Out-of-Pit, North Zone Out-of-Pit, Vein (S & N) Total, Low Grade Stockpile and Tailings Zones. Indicated Resources comprise 46.4 M tonnes @ 0.39 gpt Au, 25 gpt Ag, 0.01% Cu, 0.03% Pb, 0.06% Zn, containing 575 K Oz Au, 37.2 M Oz Ag, 9.4 M Lb Cu, 35.5 M Lb Pb, 64.3 M Lb Zn. Inferred resources comprise 20.9 M tonnes @ 0.56 gpt Au, 78 gpt Ag, 0.04% Cu, 0.13% Pb, 0.22% Zn, containing 373 K Oz Au, 52.6 M Oz Ag, 18.1 M Lb Cu, 59.7 M Lb Pb, 103.4 M Lb Zn.
  • GoGold Resources Corp. released the updated preliminary economic assessment (PEA) and mineral resource estimate for its Los Ricos South project in Jalisco. The report foresees commodity prices of $23.75 per Oz Ag and $1,850 per Oz Au, an After-Tax (5%) net present value of US$458 M, an After-Tax IRR of 37%, and an 11-year mine life (LOM) producing 88 M Oz AgEq (47 M Oz Ag, 493 K Oz Au, 14 M Lb Cu), with initial capital costs of $148 M, expansion capital of $69 M and sustaining capital of $72 M during LOM, producing 8 M Oz AgEq per year at cash cost $8.15 per Oz AgEq and all-in sustaining costs of $9.02 per Oz AgEq. The new resource estimate envisages 11.1 M tonnes averaging 1.43 gpt Au, 151 gpt Ag, 0.11% Cu in the measured and indicated resources category and 1.4 M tonnes at 1.22 gpt Au, 120 gpt Ag, 0.28% Cu in the inferred category, containing 511 K Oz Au, 53.8 M Oz Ag, 27.3 M Lb Cu (1.26 Moz AuEq) and 54.1 K Oz Au, 5.3 M Oz Ag, 8.5 M Lb Cu (140.9 K Oz AuEq) respectively.
  • Gold Resource Corp. provided an update on expansion and infill diamond drilling on the Arista, Three sisters, Gloria and Switchback vein systems at its Don David mine in Oaxaca. Highlighted true width intervals comprise 5.63 m @ 1.87 gpt Au, 279 gpt Ag, 0.2% Cu, 0.9% Pb, 1.6% Zn; 6.49 m @ 1.33 gpt Au, 21 gpt Ag, 0.17% Cu, 0.4% Pb, 2.1% Zn; 6.13 m @ 0.32 gpt Au, 214 gpt Ag, 0.76% Cu, 4.3% Pb, 3.0% Zn; 4.87 m @ 0.09 gpt Au, 47 gpt Ag, 0.47% Cu, 1.1% Pb, 7.2% Zn; 2.49 m @ 0.96 gpt Au, 27 gpt Ag, 1.01% Cu, 1.1% Pb, 9.7% Zn; 3.46 m @ 0.24 gpt Au, 198 gpt Ag, 0.74% Cu, 0.6% Pb, 4.9% Zn; 6.33 m @ 0.14 gpt Au, 60 gpt Ag, 0.62% Cu, 0.1% Pb, 2.2% Zn; 2.62 m @ 1.93 gpt Au, 73 gpt Ag, 0.81% Cu, 1.6% Pb, 10.4% Zn; 6.56 m @ 1.06 gpt Au, 27 gpt Ag, 0.22% Cu, 0.7% Pb, 2.1% Zn; 6.49 m @ 0.11 gpt Au, 78 gpt Ag, 0.64% Cu, 1.5% Pb, 2.9% Zn. “Five underground diamond drill rigs are currently operating … more than 100 drill holes and 25,000 meters of core has been drilled year-to date in 2023…. These drill results will be incorporated into a 2023 resource estimate update”.
  • Alamos Gold Inc. released drilling results from the Puerto del Aire deposit and the Capulin target at its Mulatos property in Sonora. Puerto del Aire is a high-grade underground deposit adjacent to the Mulatos pit, not included in the mineral resources, and the Capulin target is four km east of the Mulatos pit. Highlighted true width core intervals comprise 7.05 m @ 41.46 gpt Au; 9.50 m @ 18.32 gpt Au; 9.45 m @ 13.62 gpt Au; 1.20 m @ 85.80 gpt Au; 17.60 m @ 5.58 gpt Au; 18.70 @3.30 gpt Au; 6.0 m @ 10.42 gpt Au; 15.10 m @ 3.86 gpt Au; 11.50 m @ 3.21 gpt Au; 9.45 m @ 3.84 gpt Au in Puerto del Aire, and core length intercepts of 120.85 m @ 2.73 gpt Au (including 29.05 m @ 9.31 gpt Au); 6.0 m @ 3.65 gpt Au; 8.80 m @ 0.99 gpt Au in the Capulin target. Three drill rigs are currently working on the Capulin target, two defining the limits of known mineralization and one testing along the 2 km long Capulin fault. The 2023 exploration budget has been increased to 24.5 M, including 50,000 m of drilling at Puerto del Aire and 24,000 m of drilling on several high priority targets including Refugio, Halcon West, Carricito, Bajios, and Cerro Pelon West.
  • Sierra Madre Gold and Silver Ltd. Updated on its exploration activities at the past producing La Guitarra mine in Estado de México. In February 2023 the company started a 2,000-scale geologic mapping program, delineating to date nearly 53 km of mineralized quartz veins, breccias and stockwork zones hosted in metasediments and andesites, with hundreds of old shafts, cross cuts, adits, and prospect pits having been located. “ The La Guitarra Mine is a permitted, past-producing underground mine which includes a 500 t/d processing facility that operated until mid-2018”.
  • Avino Silver & Gold Mines Ltd. released the results from four holes drilled on the deepest part of the Avino mine, in Durango. The known depth extent of the mineralization is of at least 750 m vertically, which is assessed as unusual for Mexican epithermal deposits. Highlighted true width intercepts comprise 44.40 m @ 0.21 gpt Au, 31 gpt Ag, 0.70% Cu (including 9.85 m @ 0.58 gpt Au, 42 gpt Ag, 1.10% Cu); 27.15 m @ 0.07 gpt Au, 36 gpt Ag, 0.39% Cu; 13.20 m @ 0.09 gpt Au, 59 gpt Ag, 0.47% Cu; 6.60 m @ 0.12 gpt Au, 27 gpt Ag, 0.92% Cu. “Four holes totalling 2,040 meters, were drilled below Level 17 in this drill campaign … The persistence of silver and copper grade continuity from surface down a plunge distance of over 1,100 metres with increasing copper grades supports the possibility of a deeper mineralized system which may be linked to a porphyry centre”.
  • Orex Minerals Inc. announced that hyperspectral alteration studies are now underway on the Coneto project in Durango, by JV partner Fresnillo PLC. “Both direct Corescan of selected drill core from silver and gold mineralized zones, plus a SpecTIR Survey covering district scale mapping, will be conducted. These methods aid in mineral identification through Short-Wave Infra-Red (SWIR) and Visible Near Infra-Red (VNIR) analysis”. The 4,800 hectares project displays low to intermediate sulfidation Au-Ag epithermal mineralization, with 38,613 m of drilling in 106 diamond holes.
  • Golden Minerals Co. filed an updated preliminary economic assessment (PEA) for the Velardeña property in Durango.

ON DEALS AND CORPORATE ISSUES

  • Golden Tag Resources Ltd. intends (subject to regulatory and shareholders approval) to change the company name from Golden Tag Resources Ltd. to Silver Storm Mining Inc. “(La Parrila, Durango).
  • Almaden Minerals Ltd. reported that the Mexican Federal Administrative Court granted a provisional injunction to Almaden “relating to the submission issued by Mexico’s Ministry of the Economy (“Economia”) to the district court (the “District Court”) which is overseeing the implementation of the February 2022 decision of Mexico’s Supreme Court (“SCJN”) requiring indigenous consultations prior to the granting of mineral titles to the Ixtaca project ……. It is expected that the Court will decide on the grant of a permanent injunction within the coming weeks, which if received would continue in effect until the Court has ruled on the revocation of the Economia Submission” (Ixtaca, Puebla).
  • Argonaut Gold Inc. reached an agreement with four local Ejidos to operate for three more years in the El Castillo and San Agustín properties in Durango.

ON SOCIAL RESPONSIBILITY

  • No relevant news.

On the image below: Silicified structure ridge on a project in the Sonoran Desert. Picture by Jorge Cirett.

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

/ gambusinoprospectormexico / Leave a comment

Slickensides on a fault plane

By Miguel A Heredia

During the 36th week of the year (September 4th to September 10th, 2023), at least 19 press releases were announced by companies working in Mexico, with 10 reporting resources and development of their properties, four disclosing deals and corporate issues, two commenting on Mexican issues, two informing on exploration results, and one announcing financing issues. ON MEXICO ISSUES, Silver Bull secured USD $9.5M litigation funding to pursue damages claim against the Mexican government (Sierra Mojada property, Coahuila). Torex Gold, Fortuna Silver, Reyna Silver, and Prime Mining reported the best drilling intercepts in Mexico on the fourth week of August, 2023. ON EXPLORATION, In Chihuahua, Reyna Silver reported results from three initial holes of its 2023 drilling campaign being conducted at its Batopilas project in Chihuahua.  In Oaxaca, Vortex Metals completed an environmental study at its Zaachila project.  ON MINING, no relevant news.  ON FINANCING, Aura Minerals announced that its common shares are now eligible for trading in the United States on the OTCQX® Best Market under the symbol “ORAAF” (Aranzazu Mine, Zacatecas).  ON RESOURCES AND DEVELOPMENT, Gatos Silver announced that it will report an updated mineral reserve estimate, mineral resource estimate and life of mine plan for its Cerro Los Gatos Mine, Chihuahua. Kootenay reported that it has initiated a new phase of diamond drilling at its Columba project in Chihuahua.  Fortuna released drilling results and announced the discovery of the Yessi Vein, a new blind mineralized structure at its San Jose mine in Oaxaca. SilverCrest filed an updated independent technical report for its Las Chispas mine operation in Sonora. Torex reported results from the 2023 drilling program at its EPO deposit at its Media Luna project, Guerrero. Prime Mining released drill results from its ongoing 60,000m drilling program conducted at its Los Reyes project in Sinaloa. Sierra Madre provided an update of its activities at the recently acquired, past-producing La Guitarra Mine in the State of Mexico. Chesapeake provided a metallurgical and mineralogical update for its Metates deposit in Durango.  Heliostar released drill results of three new holes completed, expanded the limits of the High Grade Panel, and defined new growth targets at its Ana Paula project in Guerrero. ON DEALS AND CORPORATE ISSUES, Argonaut appointed its new Vice President, Exploration (San Agustin mine, Durango). Plata Latina announced management changes (El Naranjillo, Guanajuato).  Gatos announced results from its annual general meeting of shareholders (Los Gatos Mine, Chihuahua). Argonaut appointed its new VP Exploration (El Castillo mine, Durango). Tarachi Gold announced Directors changes (Tarachi project, Sonora). ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUE

  • Silver Bull Resources Inc., secured USD $9.5M litigation funding to pursue damages claim against the Mexican government under the agreement between the United States of America, Mexico, and Canada and the North American Free Trade Agreement. The arbitration arises from Mexico’s unlawful expropriation and other unlawful treatment of Silver Bull and its investments resulting from an illegal blockade of Silver Bull’s Sierra Mojada project that began in September 2019 and continues to this day.
  • Torex Gold Resources inc., Fortuna Silver Mines Ltd., Reyna Silver Corp., and Prime Mining Corp., reported the best drilling intercepts in Mexico on the first week of September, 2023. Details are shown in the table below:

ON EXPLORATION

  • Reyna Silver Corp., reported results from three initial holes of its 2023 drilling campaign being conducted at its Batopilas project in Chihuahua. Drilling highlights include hole BA23-58 collared on the San Roberto-Roncesvalles Vein/Structure with 218 g/t Ag over 30m, including 616 g/t Ag over 9m, including 1,405 g/t Ag over 1.45m, including 936 g/t Ag over 1.50m; hole BA23-57 collared on the Escritorio Vein with 1,360 g/t Ag over 0.25m, and 6,440 g/t Ag over 0.20m; and hole BA23-60 collared also on the Escritorio Vein with 1,342 g/t Ag over 0.80m.
  • Vortex Metals Inc., completed an environmental study at its Zaachila project, Oaxaca. “The outcomes of the now-completed study will form the basis of an Environmental Impact Assessment (EIA) report, to be submitted to the Federal Environmental Office, SEMARNAT. This report will support Vortex Metals’ application for advanced mineral exploration activities, including drilling, as it advances its pursuit of high-grade copper targets identified in earlier geochemical targeting analyses”.

ON MINING

  • No relevant news.

ON FINANCING

  • Aura Minerals Inc., announced that its common shares are now eligible for trading in the United States on the OTCQX® Best Market under the symbol “ORAAF”. The DTC is a subsidiary of the Depository Trust & Clearing Corporation, a U.S. company that manages the electronic clearing and settlement of publicly traded companies (Aranzazu Mine, Zacatecas).

ON RESOURCES AND DEVELOPMENT

  • Gatos Silver Inc., announced that it will report an updated mineral reserve estimate, mineral resource estimate and life of mine plan for its Cerro Los Gatos Mine, Chihuahua. The company will host a conference call and webcast to discuss the 2023 updates.
  • Kootenay Silver Inc., reported that it has initiated a new phase of diamond drilling at its Columba project in Chihuahua. To date Kootenay has drilled 135 holes for just over 27,000m on the project. The new phase will consists of a minimum of 3,000m in 12-15 holes focused on expanding wide high-grade intercepts hit to date in the west-northwest trending D-Vein, and was designed “to culminate in a maiden resource for the third quarter of next year as financing will allow at which point a decision on a PEA can be made”.
  • Fortuna Silver Mines Ltd., released drilling results of three infill holes totalling 1,118m, and announced the discovery of the Yessi Vein, a new blind mineralized structure at its San Jose mine in Oaxaca. Drilling highlights (true widths reported) include hole SJOM-1387 with 2.25 g/t Au and 243 g/t Ag (412 g/t AgEq) over 0.5m, plus 2.27 g/t Au and 229 g/t Ag (400 g/t AgEq) over 0.9m, plus 6.40 g/t Au and 820 g/t Ag (1,299 g/t AgEq) over 9.9m, including 27.52 g/t Au and 3,516 g/t Ag (5,580 g/t AgEq) over 0.9m; hole SJOM-1391 with 5.92 g/t Au and 779 g/t Ag (1,223 g/t AgEq) over 0.4m, plus 3.13 g/t Au and 386 g/t Ag (621 g/t AgEq) over 5m, including 3.51 g/t Au and 455 g/t Ag (718 g/t AgEq) over 1m, including 4.32 g/t Au and 488 g/t Ag (852 g/t AgEq) over 0.5m, plus 10.36 g/t Au and 1,525 g/t Ag (2,302 g/t AgEq) over 0.3m; and hole SJOM-1396 with 2.5 g/t Au and 295 g/t Ag (483 g/t AgEq) over 0.7m. “Extension drilling intersected a new blind zone of alteration and brecciation (the Jessi Vein), approximately 200m further east of the Victoria Mineralized Zone, resulting in the intersection of 1,299 g/t AgEq over 9.9m in hole SJOM-1387 and 621 g/t AgEq over 5m in hole SJOM-1391, highlighting the potential size and strength of San Jose´s mineralized system.”
  • SilverCrest Metals Inc., filed an updated independent technical report for its Las Chispas mine operation in Sonora. The report titled “Las Chispas Operation Technical Report” is dated September 5, 2023, and has an effective date of July 19, 2023.
  • Torex Gold Resources Inc., reported results from the 2023 drilling program at its EPO deposit at its Media Luna project, Guerrero. “Results from the 2023 program continue to highlight the potential to upgrade Inferred resources to the Indicated category and expand Inferred resources through step-out drilling to the north and south of the deposit”. Drilling highlights from the 2023 resource categorization and resource expansion program are shown in the tables 1 and 2:

Through the end of July, approximately 24,140 m and 54 holes were drilled as part of the 2023 drilling program at EPO, with assays received for 34 holes. This represents 72% of the approximately 35,000 m of total drilling planned at EPO in 2023.

  • Prime Mining Corp., released drill results from its ongoing 60,000m drilling program conducted at its Los Reyes project in Sinaloa. The reported drill results are from Las Primas and Fresnillo generative targets. Las Primas is outside of the previously reported 2023 Mineral Resource Estimate, while Fresnillo is a highly prospective earlier stage target, where drilling intercepted thick mineralized structures, between the Z-T and Central Zones. Drilling highlights (true widths reported) at Las Primas include hole 23LP-14 with 10.85 g/t Au and 115 g/t Ag (12.34 g/t AuEq) over 2.45m, including 15.4 g/t Au and 162 g/t Ag (17.5 g/t AuEq) over 1.70m; hole 23LP-06 with 1.7 g/t Au and 2 g/t Ag (1.73 g/t AuEq) over 9.6m, including 4.88 g(/t Au and 5 g/t Ag (4.94 g/t AuEq) over 2.95m, including 8.2 g/t Au and 8 g/t Ag (8.3 g/t AuEq) over 1.5m; and hole 23LP-07 with 0.36 g/t Au and 19 g/t Ag (0.6 g/t AuEq) over 4.45m, plus 0.87 g/t Au and 26 g/t Ag (1.2 g/t AuEq) over 14.60m, including 1.87 g/t Au and 33 g/t Ag (2.29 g/t AuEq) over 2.95m, plus 0.94 g/t Au and 21 g/t Ag (1.21 g/t AuEq) over 7.95m. Drilling highlights (true widths reported) at Fresnillo include hole 23FRE-12 with 0.56 g/t Au and 14 g/t Ag (0.74 g/t AuEq) over 23.8m, plus 0.41 g/t Au and 5 g/t Ag (0.41 g/t AuEq) over 20.8m; hole 23FRE-19 with 1.06 g/t Au and 45 g/t Ag (1.65 g/t AuEq) over 10.9m, including 6.63 g/t Au and 438 g/t Ag (12.3 g/t AuEq) over 0.85m, plus 0.48 g/t Au and 13 g/t Ag (0.65 g/t AuEq) over 13.7m, plus 0.31 g/t Au and 9 g/t Ag (0.43 g/t AuEq) over 11.05m; and hole 23FRE-20 with 0.31 g/t Au and 7 g/t Ag (0.4 g/t AuEq) over 10.2m, plus 0.87 g/t Au and 40 g/t Ag (1.39 g/t AuEq) over 7.45m, including 2.12 g/t Au and 109 g/t Ag (3.43 g/t AuEq) over 0.9m, plus 0.33 g/t Au and 7 g/t Ag (0.42 g/t AuEq) over 13.75m.
  • Sierra Madre Gold and Silver Ltd., provided an update of its activities at the recently acquired, past-producing La Guitarra Mine in the State of Mexico. The company is currently working on completing a new resource estimate by year-end in accordance with NI 43-101, concurrent with evaluating historic cost data that would feed into a Mine Restart Study. “Sierra Madre is focused on preparing the mine, plant, and equipment for a prompt restart”. “The Company anticipates that, given adequate funding and assuming project execution tracks internal projections, restart of production at La Guitarra could be feasible within 20-22 months”.
  • Chesapeake Gold Corp., provided a metallurgical and mineralogical update for its Metates deposit in Durango.  The latest results from this phase of metallurgical testwork are very encouraging. “A systematic, methodological approach individually testing several parameters under different conditions is being undertaken in 42 columns. The results have identified certain parameters that provide the conditions where the leach technology oxidizes mineralization at a faster rate than our previous testwork. Under these conditions, we believe the targeted oxidation curve will be achieved and provide the foundation for preparing the pre-feasibility study early next year”. “Chesapeake will continue to advance the metallurgical program. As the columns meet the oxidation curve target and switch to cyanide leaching, additional columns will be loaded and tested to confirm the improved oxidation rates. At the completion of this process, the results will be released outlining the oxidative curves and precious metal recoveries through cyanide leaching. Once sufficient metallurgical work is available, management plans to commence a pre-feasibility study to further de-risk Metates and advance the project toward our goal of developing one of America’s largest gold and silver deposits”.
  • Heliostar Metals Ltd., released drill results of three new holes completed, expanded the limits of the High Grade Panel, and defined new growth targets at its Ana Paula project in Guerrero. These holes are the first to assess mineralization down-plunge of the high grade panel at the core of Ana Paula. Drilling highlights include hole AP-23-303 with 1.31 g/t Au over 64m, plus 6.46 g/t Au over 98m, including 16.39 g/t Au over 33m; hole AP-23-304 with 4.73 g/t Au over 85.5m, including 25.56 g/t Au over 9.5m; and hole AP-23-305 with 3.2 g/t Au over 47.6m, including 22.9 g/t Au over 22.9m, and including 16.15 g/t Au over 2.8m, plus 2.14 g/t Au over 33.1m, including 4.77 g/t Au over 7.4m. These intercepts expand the High Grade Panel to 280m of total length from near surface. It will grow the size of the High Grade Panel in the resource update due in November. The company also defined new growth targets through a combination of new data and review of historic information.  Drill results identified a Parallel Panel target located 50m north of the High Grade Panel with multiple high grade intercepts. Drilling highlights include hole AP-23-299 with 6.95 g/t Au over 38m, including 23.3 g/t Au over 6m; hole AP-23-304 with 10.7 g/t Au over 4m, plus 4.13 g/t Au over 5.5m; and hole AP-23-296 with 13.6 g/t Au over 2m. The company also identified the Deep Expansion Zone beneath the High Grade Panel, with open intercepts. Selective drill intercepts include hole AP-11-70 with 29.1 g/t Au over 13.5m, and hole AP-13-215 with 6.3 g/t Au over 40m. In addition, Heliostar also identified two new targets:  the West Breccia target, with gold mineralization and a pathfinder element signature as strong as the High Grade Panel, and San Luis target, a large jasperoid/vein zone with open gold drill intercepts and untested high gold grades (3.0 m grading 11.35 g/t gold) on surface. The company plans to commence the drill test of these new targets in September, 2023.

ON DEALS AND CORPORATE ISSUES

  • Argonaut Gold Inc., appointed its new Vice President, Exploration (San Agustin mine, Durango).
  • Plata Latina Minerals Corporation announced the retirement of its President and CEO and Chair of the Board of Directors, and the appointment of its replacement, effective immediately (El Naranjillo, Guanajuato).
  • Gatos Silver Inc., announced results from its annual general meeting of shareholders (Los Gatos Mine, Chihuahua).
  • Tarachi Gold Corp., announced the appointment of a new member to its Board of Directors, as well as the retirement of a former Director (Tarachi project, Sonora).

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, slickensides on a fault plane in an epithermal vein-bx system in a project in Durango, Mexico.  Photo by Miguel A Heredia.

The Mining and Exploration News in Mexico: Highlights on the Fifth Week of August 2023

/ Gambusino Prospector / Leave a comment

By Jorge Cirett                                             

During the 35th week of the year (August 27th to September 3rd, 2023), 21 companies working in Mexico posted news releases. Five companies reported on quarterly or half year 2023 results. Five companies informed on the opening or closing of private placements, one on the payment of dividends and one more on the extension of a credit facility.  One company announced results of a PEA on its property and one other is working to process a tailings polymetallic resource. A company reported high-grade drilling results from its property and one other updated on exploration activities. One company informed on its intention to acquire a porphyry copper project in Sonora, while one other updated on projects in several countries and its plans for Mexico. One royalty company informed on the indirect acquisition of an NSR from a mine in Mexico. ON MEXICO ISSUES, Xótchil Gálvez, pointed that the Mining Fund should return to mining communities. ON EXPLORATION, no relevant news. ON MINING, Impact Silver, Bear Creek Mining and Minera Alamos reported financial results for Q2 2023, and Mundoro reported first half 2023 results. ON FINANCING, Aztec Minerals (C$911.6 K), Colibri Resource, Regency Silver (C$1.5 M), Sonoro Gold (C$259.2 K) and Commander Resources ($ 346 K) informed on the opening or closing of financing rounds. Orla Mining extended its credit facility to up to $200 M and four years. Alamos Gold declared a quarterly dividend. ON RESOURCES AND DEVELOPMENT, Sonoro Gold announced a positive PEA on Cerro Caliche, Sonora. Luca Mining informed on evaluation plans to reprocess tailings at Campo Morado, Guerrero. Bear Creek Mining provided underground drilling results from Mercedes, in Sonora. Discovery Silver submitted the environmental impact assessment (MIA) for Cordero, in Chihuahua. Mammoth Resources provided an update on exploration activities at Tenoriba, in Chihuahua. ON DEALS AND CORPORATE ISSUES, Southern Empire Resources entered into an agreement with Cuprum Mining, upon which Southern can acquire 100% interest in the Suaqui Verde porphyry copper project in Sonora. Excellon Resources provided an update on its projects in different countries, including Mexico. Gold Royalty completed the acquisition of a 1.0% NSR on portions of the Cozamin mine production in Zacatecas. ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUES

  • Xóchitl Gálvez, opposition senator and likely to turn into a strong presidential candidate, points that the Mining Fund should return to mining communities. The fund was created for mining to contribute to the development of the communities where the work is realized, but was funneled into a broader basket to source pensions and scholarships with electoral aims by the current president.

ON EXPLORATION

  • No Relevant News.

ON MINING

  • Impact Silver Corp. announced financial results for the second quarter 2023, reporting revenue of $5.5 M. The average mill feed at Zacualpan, in Estado de Mexico, was 163 gpt Ag, where 35.7 K tonnes were processed to produce 155.7 K Oz Ag. During the quarter Impact closed the acquisition of the Plomosas mine in Chihuahua, where a major rehabilitation program was initiated. The company completed a $9.0 M non-brokered private placement, maintains a cash balance of $13.3 M and no long-term debt.
  • Orogen Royalties Inc. reported financial results for the second quarter of 2023, including some figures on its royalties from Mexican operations. The company holds a 2.0% net smelter return (NSR) royalty on the production of First Majestic’s Ermitaño mine in Sonora. Orogen’s share of production on the quarter was $1.18 M consisting on 435 Oz AuEq, resulting from the process of 213.9 K tonnes @ 3.12 gpt Au, 39 gpt Ag, which produced 20,073 Oz Au, 142 K Oz Ag.
  • Bear Creek Mining Corp. reported its financial results for Q2 2023. During the period, 121.5 K tonnes were mined at its Mercedes mine in Sonora, 125.1 K tonnes were processed @ 2.42 gpt Au, recovering 94.53% Au to produce 9,212 Oz Au, 39,827 Oz Ag, or 10,132 Oz AuEq at cash cost $1,337 per Oz AuEq and an AISC of $1,646 per Oz AuEq. “The Mercedes mine has been inconsistent in achieving the anticipated gold grades projected in the mine plans and geological models the Company inherited upon its acquisition of Mercedes in April 2022”. Mining costs have declined by 23% in recent months and are expected to continue to reduce in the coming months due to changes in mining methods. Higher grades are to be mined from areas close to current production.
  • Minera Alamos Inc. provided an operation update for Q2 2023 and some guidance on its operations on Q3. Strip ratios were maintained below 2:1 waste vs mineralized material during mining operations, with 25% of material averaging 1.06 gpt Au being crushed and 75% of material averaging 0.43 gpt Au being sent directly to the leach pads, for an average grade of 0.59 gpt Au in the leach pads. The company expects that the precipitation levels in 2023 will allow more normal mining and production plans. Overall pad capacity is to triple if constructive communications with SEMARNAT (Environmental regulator) are fruitful. A maiden resource estimate is expected in Q3, covering the primary mineralized zones surrounding the Nicho operations. Alamos had cash and cash equivalents of $8.27 M by the end of the period. Subsequent to quarter’s end, $2.57 M ($33.2 M pesos) of VAT were returned to the company by the Mexican revenue service (SAT).
  • Mundoro Capital Inc. reported financial results for the first half of 2023. In H1 2023 the company generated $1.46 M in fees and payments. At the end of the period Mundoro held $8.4 M in cash and cash equivalents (Camargo, Chihuahua).

ON FINANCING

  • Aztec Minerals Corp. closed the first tranche of its non-brokered private placement for gross proceeds of CAD$911.6 K. “Due to investor interest in the private placement, Aztec intends to increase the financing from the original stated amount of up to CAD$1 million to up to CAD$1.2 million” (Cervantes, Sonora).
  • Orla Mining Ltd. amended its existing US$150 M credit facility with the Bank of Nova Scotia, Bank of Montreal and Canadian Imperial Bank of Commerce. The facility stays at US$150 M, with the ability to increase to US$200 M, with a 4-year term (increasing it by two years) and an interest rate will be based on the term SOFR rate, plus an applicable margin ranging from 2.50% to 3.75% based on the company’s leverage ratio at the end of each fiscal quarter. “The Amended Credit Facility is payable in full at maturity and removes quarterly mandatory repayments required under the previous term facility” (Camino Rojo Oxides, Zacatecas).
  • Colibri Resource Corp. announced an extension to complete its previously announced non-brokered private placement by September 13, 2023. “The Company is offering up to 1,000 units, each unit being comprised of: (i) a US$1,000 principal amount of 10% unsecured convertible debenture (a “Debenture”) with a maturity date (“Maturity Date”) of 2 years from the date of issuance; and (ii) 5,416 common share purchase warrants of the Company …” (Evelyn, Sonora).
  • Regency Silver Corp. will be present at the 2023 Precious Metals Summit in Beaver Creek, Colorado. Regency has arranged a non-brokered private placement of up to CAD$1.5 M in gross proceeds (Dios Padre, Sonora).
  • Alamos Gold Inc. declared a quarterly dividend of US$0.025 per common share (Mulatos, Sonora).
  • Commander Resources Ltd. closed the non-brokered private placement announced on August 3, 2023, for total gross proceeds of $346 K (Pedro, Durango).
  • Sonoro Gold Corp. closed the final tranche of its previously announced non-brokered private placement for additional gross proceeds of C$259.2 K, accruing a total of C$2.26 M (Cerro Caliche, Sonora).

ON RESOURCES AND DEVELOPMENT

  • Sonoro Gold Corp. announced a positive preliminary economic assessment (PEA) for its Cerro Caliche project in Sonora. The scope is for nine years life of mine (LOM) 33,000 Oz AuEq per year operation to obtain 297,575 Oz AuEq on recoveries of 72% Au, 27% Ag, with a pre-Tax net present value (NPV) of US$71.4 M, a pre-Tax internal rate of return (IRR) of 59% and after-Tax NPV (at 5%) of US$47.7 M with an IRR of 45%. An initial CAPEX cost of US$15.5 M and sustaining capital of US$15.5 M are envisaged, to produce at cash cost US$1,295 per Oz AuEq and an AISC of US$1,395 per Oz AuEq with a payback period of 2.9 years.
  • Luca Mining Corp. announced the signing of a memorandum of understanding with EnviroGold Global Ltd. to process the tailings at Luca’s Campo Morado Mine in Guerrero. The scope of the project is to evaluate the reprocessing of 3.29 M tonnes @ 1.32% Zn, 0.3% Cu, 0.49% Pb, 1.57 gpt Au, 94 gpt Ag, and produce a PEA for the project. On a 2021 initial testwork with EnviroGold’s, a gold recovery of 60% was achieved. The aim of the project is to increase this gold recovery rate to levels reached by EnviroGold on the Hellyer project in Australia (also a volcanogenic massive sulfide deposit, as Campo Morado), where it achieved recoveries of 90% Au, 90% Ag by leach, and 91% Cu and 82% Zn reported to a pregnant solution suitable for subsequent recovery.
  • Bear Creek Mining Corp. provided results from underground definition and delineation drilling at its Mercedes mine in Sonora. “The Company has focused drilling on the Marianas, Rey de Oro, Diluvio and Lupita deposits, all of which are associated with near-term production; however, the results also hold significant implications for exploration upside”. Highlighted true width intercepts comprise 1.0 m @ 47.90 gpt Au, 39 gpt Ag; 5.2 m @ 62.59 gpt Au, 93 gpt Ag; 4.3 m @ 7.55 gpt Au, 28 gpt Ag; 4.4 m @ 3.53 gpt Au, 10 gpt Ag; 2.1 m @ 18.41 gpt Au, 11 gpt Ag in the Marianas zone, 1.4 m @ 21.00 gpt Au, 11 gpt Ag; 4.9 m @ 3.52 gpt Au, 53 gpt Ag; 0.9 m @ 29.30 gpt Au, 63 gpt Ag; 4.2 m @ 4.56 gpt Au, 71 gpt Ag in the Rey de Oro Zone, 0.8 m @ 22.4 gpt Au, 127 gpt Ag in the Diluvio zone and 3.4 m @ 5.46 gpt Au, 95 gpt Ag in the Lupita zone. Highlighted core-length intervals from the Diluvio zone comprise 6.7 m @ 3.24 gpt Au, 63 gpt Ag; 14.3 m @ 4.11 gpt Au, 54 gpt Ag; 6.1 m @ 3.54 gpt Au, 63 gpt Ag; 6.5 m @ 5.51 gpt Au, 45 gpt Ag; 5.1 m @ 7.11 gpt Au, 78 gpt Ag; 1.5 m @ 9.23 gpt Au, 34 gpt Ag.
  • Discovery Silver Corp. submitted for evaluation the environmental impact assessment (Manifestación de Impacto Ambiental, or MIA) for its Cordero project in Chihuahua. “The MIA is one of the principal permits required for the development of Cordero and encapsulates extensive social and environmental work programs completed by the Company’s team in Mexico since 2020 in parallel with multiple reviews by third-party consultants.”
  • Mammoth Resources Corp. provided an update on ongoing exploration activities at its Tenoriba property in Chihuahua. The objective is to evaluate how to produce a resource estimation and define the processes through which the precious metals can be recovered. These activities include: (1) metallurgical testing of oxide material from the 1.5 km by 0.5 km Carneritos area. Preliminary metallurgical tests have already been performed on material from the Masuparia area; (2) analysis of all geological information, including drill data, by an independent mineral resource modelling expert aiming for the distribution of drill holes required to produce a maiden NI 43-101 mineral resource; and (3) defining future drill hole locations upon which to achieve this mineral resource.

ON DEALS AND CORPORATE ISSUES             

  • Southern Empire Resources Corp. entered into an agreement with Cuprum Mining Corp. to acquire up to 100% in the share capital of Cuprum, and thereby on the Suaqui Verde copper project in Sonora. Southern can acquire 10% of Cuprum by paying C$500 K within 90 days and issuing 7.5 M shares of Southern to Cuprum shareholders. Another 10% can be acquired by paying C$250 K to Cuprum, issuing 7.5 M shares and incurring in C$750 K on exploration expenditures on or before 15 months of closing. An additional 10% can be acquired by paying $500 K and incurring in additional C$750 K in exploration on or before 30 months from closing. Additional 20% can be acquired by Southern by paying C$500 K and incurring additional C$750 K within 45 months of closing. Southern Empire can acquire an additional 50% in Cuprum by paying C$750 K and incurring in additional C$1 M (total of C$3.25 M) on or before 60 months of closing. A 2% NSR “may be payable” subsequent to commercial production. The project encompasses 1,952 hectares with oxide and secondarily enriched copper sulfide mineralization on a porphyry copper system. A resource defined with 106 historical RC and diamond holes contains 51.2 M tonnes @ 0.31% Cu in the indicated category.
  • Excellon Resources Inc. provided an update on its projects in USA, Germany and Mexico. “As the Platosa Mine was placed on care and maintenance in earlyQ4 2022, the Company is assessing its strategic options, including the potential sale of select properties or complete divestiture of the Mexico operations. The Company will provide further updates on the Mexico operations as necessary.” (Platosa, Durango).
  • Silver Tiger Metals Inc. announced the appointment of Francisco Albelais as Vice-President of Operations and Mr. Charles Spath as Vice-President of Technical Services. (El Tigre, Sonora).
  • Gold Royalty Corp. has completed the indirect acquisition of a 1.0% net smelter return (NSR) royalty on portions of the Cozamin Cu-Ag mine in Zacatecas, from Endeavour Silver Corp. Pursuant to the transaction, Gold Royalty indirectly acquired the royalty for US$7.5 M in cash consideration.

ON SOCIAL RESPONSIBILITY

  • No relevant news.

On the image below: Silicified structure ridge on a project in the Sonoran Desert. Picture by Jorge Cirett.