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

Grossular garnet exo skarn.

By Miguel A Heredia

During the 38th week of the year (September 19th to September 25th, 2022), at least 12 press releases were announced by companies working in Mexico, and 3 news published by the media with four informing on exploration results, four reporting resources and developments of their properties, four commenting on Mexican issues, two announcing financing issues, and one discussing social issues. ON MEXICO ISSUES, Enrique Zorrilla, president of the Canadian Chamber of Commerce in Mexico stated that Canada has its eyes fixed on Mexico as an investment destination for its mining companies, mainly in exploration expenses to find new gold deposits. According to a recent report by the Ministry of Finance, Mexico values ​​its lithium deposits in Sonora at USD $602,000M. In Mexico, only 33% of mines have access to a computer with an Internet connection to reduce accidents. On a striking difference with last week news releases, only Vizsla Silver Corp., posted drilling results in Mexico on the fourth week of September, 2022. ON EXPLORATION, In Sonora, Tocvan and its JV partner Colibri announced the next steps to be conducted at both the Pilar and the El Picacho projects. In Sinaloa, Prismo provided an update of its ongoing drilling program being conducted at its Palos Verdes project. In Durango, Regency entered into an option agreement to acquire a 100% undivided interest in the El Tablon claims.  ON MINING, no relevant news. ON FINANCING, Tocvan announced that it has filed to extend the expiration date of 1,244,668 common share purchase warrants by six months (The Pilar project, Sonora). Barksdale closed a non-brokered private placement for gross proceeds of $2M and issued a total of 4,622,917 units at a price of $0.48 per Unit for gross proceeds of $2.22 (San Javier project, Sonora). ON RESOURCES AND DEVELOPMENT, Oroco announced the commencement of a Preliminary Economic Assessment (PEA) for its Santo Tomas project in Sinaloa.  Galore provided an update on the exploitation activities carried out at its Duraznillo mine in Zacatecas. Golden Tag reported positive metallurgical results from the Fernandez Zone at its San Diego project, Durango. Vizsla reported results from 13 new drill holes targeting the Cruz Negra Vein located in the western portion of its Panuco project in Sinaloa.  ON DEALS AND CORPORATE ISSUES, no relevant news. ON SOCIAL RESPONSIBILITY, Almaden signed new and expanded cooperation agreements with the two communities closest to its Ixtaca project, Puebla.

ON MEXICO ISSUE

  • Enrique Zorrilla, president of the Canadian Chamber of Commerce in Mexico stated that Canada has its eyes fixed on Mexico as an investment destination for its mining companies, mainly in exploration expenses to find new gold deposits. He declared that 35% of the capital invested by that country goes to the mining sector.
  • According to a recent report by the Ministry of Finance, Mexico values ​​its lithium deposits in Sonora at USD $602,000M. Although Mexico does not currently produce the metal, the finance ministry estimated that Sonora’s reserves could add about 0.3% to potential GDP in the medium term. While the ultra light white metal is usually extracted from rock or brine deposits, lithium in Sonora is mostly trapped in clays, from which it has not yet been extracted on a commercial scale.
  • In Mexico, only 33% of mines have access to a computer with an Internet connection to reduce accidents. Ericsson revealed that the use of tools such as telemetry, satellite geolocation, wireless sensors and remote operation help improve mining operations, because with them and with the speed of the 5G network, information can be obtained practically in real time.
  • On a striking difference with last week news releases, only Vizsla Silver Corp., posted drilling results in Mexico on the fourth week of September, 2022. Details are shown in the table below:

ON EXPLORATION

  • Tocvan Ventures Corp., and its JV partner Colibri Resources Corporation announced the next step to be conducted at both the Pilar and the El Picacho projects in Sonora. At the El Picacho, Tocvan plans to initiate a maiden drill program targeting the San Ramon prospect. The plan for the Pilar is to commence bulk sampling of trench material to be processed in a local heap leach facility; to complete 2,000m of infill drilling and 3,000m of step-out and exploration drilling; to proceed with the permitting and development requirements for establishing a bulk test mine on-site; and to update the technical report.
  • Prismo Metals Inc., provided an update of its ongoing drilling program being conducted at its Palos Verdes project, Sinaloa. The Company has drilled approximately 560m in two core holes of a planned minimum of 2,000m drill program, with the second hole currently in progress. Both holes have intersected several vein structures. Palos Verdes project is contiguous to the Panuco silver-gold project of Vizsla Silver Corp.
  • Regency Silver Corp., entered into an option agreement to acquire a 100% undivided interest in the El Tablon claims located only 26km from the historical Tayoltita mining district in the state of Durango. The property covers a total of 7,200 hectares and contains numerous artisanal workings and tunnels, which explored many of the veins and veinlets that exist within the concession area. In order to exercise the option, Regency Silver must pay USD $50K on receipt of exchange acceptance, issue a total of 1M common shares and pay back taxes and mining filings on or before March 31, 2024. Regency Silver must also pay a USD $1M bonus upon a NI 43-101 resource being published, which estimates the El Tablon Claims contain a minimum of 70M Oz AgEq or M Oz Au in the measured or indicated categories.

ON MINING

  • No relevant news.

ON FINANCING

  • Tocvan Ventures Corp., announced that it has filed to extend the expiration date of 1,244,668 common share purchase warrants by six months. The Warrants are exercisable into common shares of the Company at a price of $0.75 per common share. The Warrants were issued pursuant to a non-brokered private placement of 1,244,668 units at a price of $0.60 on March 30, 2021. The Warrants were set to expire September 30, 2022 and will have an amended expiry date of March 31, 2023. All other terms and conditions of the Warrants, including the exercise price, remain the same (The Pilar project, Sonora).
  • Barksdale Resources Corp., closed a non-brokered private placement for gross proceeds of $2M and issued a total of 4,622,917 units at a price of $0.48 per Unit for gross proceeds of $2,219,000. The net proceeds from the offering will be used to advance the company’s mineral projects and for general corporate and working capital purposes (San Javier project, Sonora).

ON RESOURCES AND DEVELOPMENT

  • Oroco Resource Corp., announced the commencement of a Preliminary Economic Assessment (PEA) for the North and South Zones of its Santo Tomas project in Sinaloa. Additionally, the company mobilized two rigs more to the project, bringing to six the total number of drills conducting infill and step-out drilling in the North Zone and South Zone.
  • Galore Resources Inc., provided an update on the exploitation activities carried out at its Duraznillo mine in Zacatecas. “Immediately following the execution of the Exploitation Agreement with Oztoc Metals Corporation and the successful removal of the former tenant, Oztoc’s team has been evaluating and remediating the Duraznillo mine site. After conducting several processing trials, Oztoc determined that in order to achieve better production levels, a new and much improved processing system needed to be installed. Oztoc has purchased this equipment and is awaiting its arrival to begin operations, which should take place within the next two to three months”.
  • Golden Tag Resources Ltd., reported positive metallurgical results from the Fernandez Zone at its San Diego project, Durango. According to the metallurgical results, the endoskarn mineralization found at the Fernandez Zone is amenable to conventional flotation techniques; 76% of the Ag and 84% of the Pb were recovered to a bulk concentrate containing 51% Pb, 4700 g/t Ag, 3.11% Zn, 5.27% Cu, and 2.23 g/t Au; Cu and Au recoveries within the bulk concentrate had significant improvements over previous test work; and 84% of the zinc was recovered to a concentrate grading 47% zinc.
  • Vizsla Silver Corp., reported results from 13 new drill holes targeting the Cruz Negra Vein located in the western portion of its Panuco project in Sinaloa.  Drilling highlights include hole NP-22-274 with 413 g/t Ag, 1.99 g/t Au, 0.2% Pb, and 0.3% Zn (541 g/t AgEq) over a true width (TW) of 2.09m, including 2,490 g/t Ag, 2.85 g/t Au, 0.6% Pb, and 0.9% Zn (3,287 g/t AgEq) over a TW of 0.26m, plus 258 g/t Ag, 1.54 g/t Au, 0.01% Pb, and 0.2% Zn (357 g/t AgEq) over a TW of 0.88m;  hole NP-22-262 with 289 g/t Ag, 2.38 g/t Au, 0.8% Pb, and 0.7% Zn (486 g/t AgEq) over a TW of 0.65m, including 741 g/t Ag, 5.88 g/t Au, 0.3% Pb, and 1.3% Zn (1,165 g/t AgEq) over a  TW of 0.20m, plus 168 g/t Ag, 16.42 g/t Au, 0.9% Pb, and 3.3% Zn (1,476 g/t AgEq) over a TW of 0.65m, including 181 g/t Ag, 19.70 g/t Au, 1.1% Pb, and 3.8% Zn (1,748 g/t AgEq) over a TW of 0.46m; hole NP-22-290 with 76 g/t Ag, 2.6 g/t Au, 0.6% Pb, and 6.2% Zn (491 g/t AgEq) over a TW of 2.85m; hole NP-22-293 with 481 g/t Ag, 1.2 g/t Au, 0.02% Pb, and 0.02% Zn (535 g/t AgEq) over a TW of 0.76m; and hole NP-22-298 with 297 g/t Ag, 1.78 g/t Au, 0.3% Pb, and 1.2% Zn (456 g/t AgEq) over a TW of 1.60m. Vizsla also reported that it acquired a new claim that connect the northwest and southeast extents of Cruz Negra which are situated on pre-existing Vizsla claims and represent approximately 400m of new potentially mineralized vein strike to explore.

ON DEALS AND CORPORATE ISSUES

  • No relevant news.

ON SOCIAL RESPONSIBILITY

  • Almaden Minerals Ltd., signed new and expanded cooperation agreements with the communities of Zacatepec and Santa Maria Zotoltepec, the two communities closest to its Ixtaca project, Puebla. “These agreements set out the terms of the Company’s continued support of local communities’ human right to water through the immediate improvement of local water infrastructure, and establish a basis for longer term cooperation, once the Ixtaca project is permitted. In Zacatepec, the Company has reaffirmed its agreement with the “Irrigation Group of Small Producers from Zacatepec A.C.” to construct an agricultural water reservoir and related pumping and drip irrigation system to support local farming. In Santa María Zotoltepec, the Company has signed an agreement with the “United Ejidatarios for the Sustainable Development of Santa María Zotoltepec, A.C.” in which the Company will make an immediate contribution in order to support the construction of a similar agricultural reservoir and pumping and drip irrigation system with similar characteristics to the one built at Zacatepec, and ongoing contributions to support an agro-technological package aimed at sustainable plant nutrition and soil enrichment”.

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 grossular garnet exo skarn in a prospect in Tamaulipas, Mexico.  Photo by Miguel A Heredia.

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

Porphyry copper mineralization

By Miguel A Heredia

During the 36th week of the year (September 05th to September 11th, 2022), at least 23 press releases were announced by companies working in Mexico, and 4 news published by the media with seven informing on exploration results, seven communicating production and financial results, five reporting resources and developments of their properties, five commenting on Mexican issues, two announcing financing issues, and one discussing social issues. ON MEXICO ISSUES, Equinox informed that mining activities at its Los Filos mine in Guerrero have been temporarily suspended due to an illegal blockade. Rocío Nahle, Secretary of Energy announced that Lithium for Mexico (LitioMx) will hold the first meeting of its Board of Directors on September 20, 2002. The Attorney General’s Office (FGR) reported that three arrest warrants have been issued against the same number of people, for the events that occurred in the Coahuila mine ‘El Pinabete’, where 10 workers are trapped. Reyna Gold Corp., GoGold Resources Inc., GR Silver Mining Ltd., Endeavour Silver Corp., Prime Mining Corp., Kootenay Silver Inc., Silver Spruce Resources Inc., and Vizsla Silver Corp., reported the best drilling intercepts in Mexico on the second week of September, 2022. ON EXPLORATION, In Sonora, Aztec completed the first seven holes of phase 3 drilling program at its Cervantes project, Silver Spruce and its partner Colibri Resources Corp., drilled 19 RC holes for a total of 2,005m at its El Diamante project and reported initial results from the first holes, Reyna Gold announced results from 22 holes totaling 3,823m of its ongoing 10,000m regional exploration drill program at its la Gloria project, and Infinitum Copper reported completion of the first phase of the current program at its flagship La Adelita project. In Chihuahua, Kootenay released results from eleven holes collared at its Columba project.  In Zacatecas, Galore reported that completed 3 holes in the San Jose area at its Dos Santos project. ON MINING, no relevant news. ON FINANCING, Barksdale announced a non-brokered private placement for gross proceeds of $2M (San Javier project, Sonora). Sierra Madre closed the first tranche of its previously announced brokered private placement for aggregate gross proceeds of $10M (La Guitarra property, State of Mexico). ON RESOURCES AND DEVELOPMENT, Bear Creek announced that it engaged Unison to design and Renoir to implement a 32-week performance improvement program at its Mercedes mine in Sonora. Vizsla reported results from 14 new holes drilled within the Tajitos-Copala resource area at its flagship Panuco project, Sinaloa.  Endeavour reported results from its ongoing drilling program at its Parral project in Chihuahua. GoGold released results from seven new holes drilled at the El Favor East Deposit within its Los Ricos North property in Jalisco. GR Silver reported results from 3 holes drilled at its San Marcial project in Sinaloa. Prime Mining announced additional phase 2 drill results from its Los Reyes project in Sinaloa. Regency Silver completed a 2,000m drilling program at its flagship Dios Padre project in Sonora. ON DEALS AND CORPORATE ISSUES, Aztec announced the appointment of a new member to its Board of Directors (Cervantes project, Sonora). Vizsla announced that it has filed its 2022 annual report with the U.S. Securities and Exchange Commission (SEC) (Panuco project, Sinaloa).  Riverside and BHP extended into a fourth year its Sonora Mexico exploration program. Galore reported results of its annual general meeting of shareholders and announced the grant of incentive stock options to directors and officers (Dos Santos project, Zacatecas). Gatos Silver provided bi-weekly status report in accordance with National Policy 12-203 – Management Cease Trade Orders due to the delay in the filing of  annual reports which includes its audited consolidated financial statements, together with the management’s discussion and analysis, relating to the audited annual financial statements, and the Chief Executive Officer and Chief Financial Officer certificates relating to its annual filings for the years 2021 and 2022 (Cerro Los Gatos, Chihuahua). ON SOCIAL RESPONSIBILITY, Peñoles and Fresnillo plc support the Heroic Fire Department and the Red Cross with supplies and training.

ON MEXICO ISSUE

  • Equinox Gold Corp., informed that mining activities at its Los Filos mine in Guerrero have been temporarily suspended due to an illegal blockade by members of the nearby Mezcala community. The blockade is preventing delivery of certain supplies to the Los Filos Mine that are required to maintain operations. 
  • Rocío Nahle, Secretary of Energy announced that Lithium for Mexico (LitioMx) will hold the first meeting of its Board of Directors on September 20, 2002. The secretary added that the use of lithium is essential for the energy transition, since it allows the production of batteries. “Right now, it is in high demand around the world for its power to store electricity,” she stressed. She recalled that wind and solar plants are intermittent sources of energy, so “white gold” represents a great opportunity for the Mexican energy sector.
  • The Attorney General’s Office (FGR) reported that three arrest warrants have been issued against the same number of people, for the events that occurred in the Coahuila mine ‘El Pinabete’, where 10 workers are trapped. Since last August 5, the FGR began the investigation procedure for the events that occurred in the mine, owned by the mining company ‘El Pinabete’ S.A de C.V. The FGR reported that the arrest warrants are for the probable commission of the crime provided for and sanctioned in article 150 in relation to article 149 of the General Law of National Assets.
  • Mexican President, Andrés Manuel López Obrador does not rule out comprehensive mining law reform. A month after the collapse of a coal mine in Sabinas, Coahuila, where 10 miners remain trapped and rescue works do not seem to yield results, President López Obrador said he does not rule out a comprehensive reform to the Mining Law, aimed at preventing such incidents from happening again. The reform would also set stricter rules for extractive activities. López Obrador did not mention exactly when is he planning to propose his reform, but it seem to have the support from at least most of MORENAs senators and one of the most important Unions in Mexico.
  • Reyna Gold Corp., GoGold Resources Inc., GR Silver Mining Ltd., Endeavour Silver Corp., Prime Mining Corp., Kootenay Silver Inc., Silver Spruce Resources Inc., and Vizsla Silver Corp., reported the best drilling intercepts in Mexico on the second week of September, 2022. Details are shown in the table below:

ON EXPLORATION

  • Aztec Minerals Corp., completed the first seven holes of phase 3 drilling program at its Cervantes project in Sonora to drill test three targets: California, California Norte and Jasper.  The company has drilled a total of 1,607m in seven holes from the 3,000m planned in eleven holes. Assay results are pending and are expected to arrive in the next coming weeks.
  • Silver Spruce Resources Inc., and its partner Colibri Resources Corp., drilled 19 RC holes, being 10 holes at the La Prieta target and 9 holes at El Pillado target, for a total of 2,005m at its El Diamante project. Highlights of the drill intersections at El Pillado target include hole DIA22-01 with five intervals to 3m with two sections exceeding 1% Zn; hole DIA22-02 with six intervals to 3m with one section containing 3.9% Zn; hole DIA22-05 with five intervals with significant metal values, including 24-30m (high silver to 251 g/t Ag, Zn to 1.9 %), 33-36m (Ag to 397 g/t, Pb+Zn to combined 11.2.%), 43.5-51m (Ag to 257 g/t, Pb+Zn to 13.1.%), 78-81m (Ag to 36 g/t, Pb+Zn to 8.5.%); hole DIA22-06 with a zone of 3m (Ag to 60 g/t and Pb to 1.21%); and hole DIA22-08 with the highest gold of 0.934 g/t Au at a depth of 13.5m with low Ag and base metal values. Final geochemical assay results from drilling at the La Prieta target are currently being compiled and the results will be released soon.
  • Reyna Gold Corp., announced results from 22 holes totaling 3,823m of its ongoing 10,000m regional exploration drill program at its la Gloria project in Sonora, where the company has tested five target areas to date. Drilling highlights at La Republicana target include hole LG-22-30 with 1.45 g/t Au over 59m including 5.96 g/t Au and 20 g/t Ag over 2.85m with a subinterval of 21.5 g/t Au and 30 g/t Ag over 0.8m; 2.29 g/t Au over 6.65m with a subinterval of 4.2 g/t Au and 18 g/t Ag over 3.50m; 6.41 g/t Au and 47 g/t Ag over 2.8m, with a subinterval of 19.5 g/t Au, 141 g/t Ag, 0.3% P, and 0.2% Zn over 0.12m; and 5.79 g/t Au and 52 g/t Ag over 2.95m, with a subinterval of 19.5 g/t Au, 168 g/t Ag, 0.2% Pb, and 0.2% Zn over 0.70m; and hole LG-22-028 with 935 g/t Ag over 5.50m, including 4,640 g/t Ag, 0.93% Cu, and 0.2% Zn over 1m, plus 0.22 g/t Au over 27.30m, including 2.13 g/t Au over 1m, plus 1.49 g/t Au over 0.4m. The company looks forward to additional drilling in La Republicana target.
  • Infinitum Copper Corp., reported completion of the first phase of the current program at its flagship La Adelita project in Sonora. The interpretation of the Magneto Telluric geophysical program is now completed and show good correlation with historic drilling. The strongest anomalies are still untested by drilling. The company also completed 12 holes on the trend of high-grade Cu-Au-Ag skarn mineralization at the Cerro Grande Zone with a total of 2,574m, including 1,848 samples that have been sent to the lab for analysis with results pending.
  • Kootenay Silver Inc., released results from eleven holes collared at its Columba project in Chihuahua. Seven out of the eleven holes were collared at the D Vein and 4 at the B Vein. Drilling highlights at D Vein include hole CDH-22-125 with 158 g/t Ag, 0.1% Pb, and 0.2% Zn over 1.83m, plus 540 g/t Ag, 0.26 g/t Au, 0.4% Pb, and 1.6% Zn over 34.45m, including 1,746 g/t Ag, 0.88 g/t Au, 1.1% Pb, and 5.2% Zn over 9.70m, including 2,498 g/t Ag, 1.28 g/t Au, 1.6% Pb, and 7.5% Zn over 6.10m, including 5,840 g/t Ag, 3 g/t Au, 3.1% Pb, and 17.2% Zn over 2.45m; hole CDH-22-127 with 788 g/t Ag, 0.6% Pb, and 1.3% Zn over 0.98m, plus 103 g/t Ag, 0.04% Pb, and 0.1% Zn over 1m, plus 136 g/t Ag, 0.01% Pb, and 0.1% Zn over 1m; hole CDH-22-128 with 136 g/t Ag, 0.1% Pb, and 0.2% Zn over 20m, including 520 g/t Ag, 0.33 g/t Au, 0.03% Pb, and 0.1% Zn over 2m, plus 277 g/t Ag, 0.3% Pb, and 1.2% Zn over 1m, plus 136 g/t Ag, 0.6% Pb, and 1.3% Zn over 2m; and hole CDH-22-131 with 150 g/t Ag, 0.1% Pb, and 0.2% Zn over 16m, including 311 g/t Ag, 0.2% Pb, and 0.4% Zn over 4.86m, including 603 g/t Ag, 0.02% Pb, and 0.1% Zn over 0.59m. On the B Vein, the most significant drill intersect was encountered in hole CDH-22-134 with 109 g/t Ag and  0.1% Zn over 6.6m, including 251 g/t Ag, 0.1% Pb, and 0.1% Zn over 1.5m, plus 279 g/t Ag, 0.1% Pb, and 0.2% Zn over 0.5m. These drilling results extend known mineralization along strike and beneath existing drilling at both the D Vein and B Vein targets.
  • Galore Resources Inc., completed 3 holes in the San Jose area at its Dos Santos project in Zacatecas. The most significant mineralization was encountered in holes SJ20 with 2.26 g/t Au over 1.20m, plus 2.06 g/t Au over 0.85m; and hole SJ21 with three contiguous intervals of 3.69 g/t Au, 0.79 g/t Au, and 0.59 g/t Au over 1.80m, 0.70m, and 1.30m respectively.

ON MINING

  • No relevant news.

ON FINANCING

  • Barksdale Resources Corp., announced a non-brokered private placement for gross proceeds of $2M. Part of the gross proceeds will be used to finance exploration activities   at its San Javier project, Sonora, as well as for working capital and general corporate purposes. The Company also proposes to extend by a further four months, the expiry date of a total of 7,597,836 share purchase warrants, issued September 29, 2020 and 690,790 share purchase warrants issued October 1, 2020 in connection with a non-brokered private placement. These aggregate 8,288,826 2020 Warrants are exercisable into 8,288,826 common shares and remain at an exercise price of $0.55 per share.
  • Sierra Madre Gold and Silver Ltd., closed the first tranche of its previously announced brokered private placement for aggregate gross proceeds of $10M. The company will use the gross proceeds for the development of it’s the La Guitarra property in the State of Mexico, advancement of engineering studies and general working capital purposes.

ON RESOURCES AND DEVELOPMENT

  • Bear Creek Mining Corporation announced that it engaged Unison Mining Consulting Pte. Ltd., to design and Renoir Management Corporation to implement a 32-week performance improvement program at its Mercedes mine in Sonora. The planned improvements are to re-open closed mining areas to achieve production rates of over 70K Oz Au per year and reduce costs. This program will cost USD $2.15M.
  • Vizsla Silver Corp., reported results from 14 new holes drilled within the Tajitos-Copala resource area at its flagship Panuco project, Sinaloa.  Drilling highlights include hole CS-22-182 with 1,935 g/t Ag and 15.47 g/t Au (2,913 g/t AgEq) over a true width (TW) of 1.46m; hole CS-22-128 with 299 g/t Ag and 2.08 g/t Au (427 g/t AgEq) over a TW of 2.50m, including 995 g/t Ag and 7.6 g/t Au (1,472 g/t AgEq) over a TW of 0.46m; hole CS-22-185A with 302 g/t Ag and 2.02 g/t Au (426 g/t AgEq) over a TW of 1m; and hole CS-22-196 with 278 g/t Ag and 2.33 g/t Au (426 g/t AgEq) over a TW of 2.16m. “The new drill results support a NW-plunging high-grade zone with an average vertical extent of 250 metres and approximate strike length of 500 metres”.
  • Endeavour Silver Corp., reported results from its ongoing drilling program at its Parral project in Chihuahua. High grade silver was encountered in several holes. Drilling highlights include hole CUV-78 with 199 g/t Ag, 4.7% Pb, and 2.6% Zn (428 g/t AgEq) over 3.48m, including 501 g/t Ag, 8% Pb, and 6.5% Zn (971 g/t AgEq) over 0.27m; hole CUV-80 with 322 g/t Ag, 5.2% Pb, and 1.6% Zn (528 g/t AgEq) over 1.67m, including 605 g/t Ag, 14.8% Pb, and 3.5% Zn (1,150 g/t AgEq) over 0.53m; hole VCU-90 with 664 g/t Ag, 1.9% Pb, and 0.8% Zn (747 g/t AgEq) over 5.56m, including 5,600 g/t Ag, 15.3% Pb, and 1.7% Zn (6.096 g/t AgEq) over 0.22m, plus 145 g/t Ag, 0.2% Pb, and 0.5% Zn (168 g/t AgEq) over 3.05m, including 247 g/t Ag, 0.3% Pb, and 1.9% Zn (325 g/t AgEq) over 0.55; and hole CUV-96 with 242 g/t Ag, 0.5% Pb, and 1.7% Zn (317 g/t AgEq) over 5.34m, including 711 g/t Ag, 0.5% Pb, and 2.1% Zn (806 g/t AgEq) over 0.52m. The company has drilled since April 2022 over 5,300m in 23 holes, totaling 8,100m year to date with the aim to define and extend mineralized zones. The high grade Ag results show the potential for resource expansion at depth and along strike in the El Verde and Sierra Plata Deep areas along the Veta Colorada structure.
  • GoGold Resources Inc., released results from seven new holes drilled at the El Favor East Deposit within its Los Ricos North property in Jalisco. Drilling highlights include hole LRGF-22-136 with 0.24 g/t Au and 84 g/t Ag (1.35 g/t AuEq or 101 g/t AgEq) over 4.9m, plus 0.52 g/t Au and 108 g/t Ag (1.96 g/t AuEq or 147 g/t AgEq) over 47.6m, including 2.07 g/t Au and 319 g/t Ag (6.32 g/t AuEq or 474 g/t AgEq) over 10.7m, including 13.47 g/t Au and 615 g/t Ag (21.66 g/t AuEq or 1,625 g/t AgEq) over 1.1m; and hole LRGF-22-124 with 0.31 g/t Au and 111 g/t Ag (1.79 g/t AuEq or 134 g/t AgEq) over 22m, including 1.65 g/t Au and 530 g/t Ag (8.72 g/t AuEq or 654 g/t AgEq) over 3.4m, including 5.05 g/t Au and 1,456 g/t Ag (24.46 g/t AuEq or 1,835 g/t AgEq) over 0.9m. These drill results show extension of the zone to the east and additional high grade infill.
  • GR Silver Mining Ltd., reported results from 3 holes drilled at its San Marcial project in Sinaloa, to follow-up on lateral and down dip, the  high grade encountered previously at the Southeast Area.  Hole SMS22-11 intersected 92 g/t Ag and 0.02 g/t Au over 75.7m, including 102 g/t Ag, 0.01 g/t Au, and 0.1% Zn over 63.6m, including 1,253 g/t Ag, 0.02 g/t Au, 0.5% Pb, and 1.4% Zn over 0.3m, plus 1,032 g/t Ag, 0.01 g/t Au, 0.5% Pb, and 1.9% Zn over 0.4m. Hole SMS22-12 encountered 98 g/t Ag, 0.03 g/t Au, 0.4% Pb, and 0.6% Zn over 44.5m, including 1,059 g/t Ag, 0.01 g/t Au, 0.2% Pb, and 0.5% Zn over 0.2m, plus 537 g/t Ag, 0.06 g/t Au, 0.4% Pb, and 1% Zn over 1m. Hole SMSP22-022 intersected 426 g/t Ag, 0.1% Pb, and 0.2% Zn over 3.2m, including 1,932 g/t Ag, 0.05% g/t Au, 0.2% Pb, and 0.6% Zn over 0.5m. GR Silver informed that additional drilling is in progress aiming to continuously expand lateral and down dip continuity of the Ag mineralization.
  • Prime Mining Corp., announced additional phase 2 drill results from 42 infill and step out drill holes collared at Guadalupe Corridor within its Los Reyes project in Sinaloa. Drilling highlights include hole 22GE-73 with 5.01 g/t Au and 328 g/t Ag over a true width (TW) of 1.9m; hole 22GE-72 with 1.65 g/t Au and 236 g/t Ag over a TW of 13.5m, plus 0.95 g/t Au and 124 g/t Ag over a TW of 6m, plus 2.52 g/t Au and 365 g/t Ag over a TW of 1.5m; hole 22GE-105 with 1.46 g/t Au and 56 g/t Ag over a TW of 14.4m, plus 1.01 g/t Au and 67 g/t Ag over a TW of 1.5m; hole 22GE-70 with 1.38 g/t Au and 38 g/t Ag over a TW of 4.5m; hole 22GE-59 with 2.77 g/t Au and 440 g/t Ag over a TW of 1.1m; hole 22GE-563 with 0.97 g/t Au and 267 g/t Ag over a TW of 2.5m; hole 22GE-77 with 1.28 g/t Au and 45 g/t Ag over a TW of 2.6m; hole 22GE-80 with 1.55 g/t Au and 43 g/t Ag over a TW of 5.7m, plus 1.72 g/t Au and 43 g/t Ag over a TW of 4.8m; hole 22GE-85 with 16.1 g/t Au and 391 g/t Ag over a TW of 0.5m; and hole 22GE-76 with 10.41 g/t Au and 683 g/t Ag over a TW of 0.7m, plus 0.92 g/t Au and 945 g/t Ag over a TW of 1.1m, These drill results expand the Au-Ag mineralization potential at Guadalupe Corridor.
  • Regency Silver Corp., completed a 2,000m drilling program at its flagship Dios Padre project in Sonora. This program was designed to test a large IP anomaly only 550 metres to the north of the existing Dios Padre historical workings to determine whether it represents a significant continuation of the mineralization, as well as  to test for extensions to the existing Dios Padre mineral resource. Final assay results are expected in early October. The Company will release the results shortly thereafter.

ON DEALS AND CORPORATE ISSUES

  • Aztec Minerals Corp., announced the appointment of a new member to its Board of Directors (Cervantes project, Sonora).
  • Vizsla Silver Corp., announced that it has filed its 2022 annual report with the U.S. Securities and Exchange Commission (SEC). It includes its management discussion and analysis, annual information form, and audited financial statements for the year ended April 30, 2022.  (Panuco project, Sinaloa).
  • Riverside Resources Inc., and BHP extended its Exploration Funding Agreement (EFA) into a fourth year for its Sonora Mexico exploration program. The plan is to move into the next exploration phase focusing on five copper projects in Sonora, Mexico with a currently approved USD $1.1M in exploration funding to work on the Llano de Nogal district and USD $0.5M in ongoing High Value Work programs in the Sonora Projects for a total so far allocated budget of USD $1.6M exploration work on the specified properties in the EFA.
  • Galore Resources Inc., reported results of its annual general meeting of shareholders and announced the grant of 7.1M incentive stock options to directors and officers, exercisable at a price of $0.10 for a period of 5 years from the date of grant (Dos Santos project, Zacatecas).
  • Gatos Silver Inc., provided bi-weekly status report in accordance with National Policy 12-203 – Management Cease Trade Orders due to the delay in the filing of annual reports which includes its audited consolidated financial statements, together with the management’s discussion and analysis, relating to the audited annual financial statements, and the Chief Executive Officer and Chief Financial Officer certificates relating to its annual filings for the years 2021 and 2022 (Cerro Los Gatos, Chihuahua).

ON SOCIAL RESPONSIBILITY

  • Peñoles and Fresnillo plc have supported for more than two decades to the Heroic Fire Department and the Red Cross. The two companies have resolutely supported these institutions in the communities where they operate, by donating medical supplies to the Red Cross and training for firefighters.

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, Cu mineralization related to a porphyry copper system in a project in Sinaloa, Mexico.  Photo by Miguel A Heredia.

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

Quartz vein displaying boiling texture.

By Miguel A Heredia

During the 34th week of the year (August 22nd to August 28th, 2022), at least 16 press releases were announced by companies working in Mexico, and 7 news published by the media with seven commenting on Mexican issues, four communicating production and financial results, four disclosing deals and corporate issues, three reporting resources and developments of their properties, three announcing financial issues, and two informing on exploration results. ON MEXICO ISSUES, Colibri and Oroco reported the best drilling intercepts in Mexico on the fourth week of August, 2022. The government of Mexico announced, through a decree in the Official Gazette of the Federation, the creation of the state company Litio para Mexico (LitioMx). According to the Mining Chamber of Mexico (CAMIMEX), a total of 822 mining projects remain on hold and represent an amount of USD $959M.   Jaime Gutierrez Núñez, president of CAMIMEX stated that small-scale coal mining is like “the blood diamonds” of Africa. Mexico’s mining industry plans to invest USD $5.5B in 2022, 15.2% more than in 2021. Mining in Mexico grew by 7.1% in 2021 despite friction with the government. The governor of Durango, José Rosas Aispuro, considered unfair that the mining-metallurgical sector is one of the economic sectors with the highest tax burden in the country. In Mexico there are more than 1,209 mining projects that have been developed in 26 states of the Republic.  ON EXPLORATION, In Sonora, Colibri reported results from the second half of its Phase 1 drill program completed on its Evelyn project, and Tocvan announced latest drill results from its Pilar project.  ON MINING, Guanajuato Silver, Discovery Silver, Minera Alamos, and Orogen reported Q2, 2022 production and financial results from their Mexican operations. ON FINANCING, Canasil announced a non-brokered private placement for gross proceeds of up to $550K (Nora project, Durango). Minera Alamos arranged a USD $3M working capital facility and announced a closed a USD $4.35M equity raise (Cerro de Oro project, Zacatecas). Eric Sprott announced holdings in Orex Minerals Inc. ON RESOURCES AND DEVELOPMENT, Discovery Silver reported Q2, 2022 results from its flagship Cordero project, Chihuahua.  Minera Alamos provided an update on its Cerro de Oro project, Zacatecas. Oroco successfully tested the western side of the North Zone at its Santo Tomas project in Sinaloa.  ON DEALS AND CORPORATE ISSUES, Monumental announced that its common shares are now trading on the OTCQB Venture Market under the symbol MNMRF (Jemi project, Coahuila). Argonaut announced the appointment of its Vice President, Canadian Operations (La Colorada mine, Sonora).  Aztec purchased 35% interest in the Cervantes property in Sonora from Kootenay. Colibri announced reinstatement of trading on the TSX Venture Exchange and the appointment of its CFO.  ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUE

  • Colibri Resource Corporation and Oroco Resource Corp., reported the best drilling intercepts in Mexico on the fourth week of August, 2022. Details are shown in the table below:
·        The government of Mexico announced, through a decree in the Official Gazette of the Federation, the creation of the state company Litio para Mexico (LitioMx). The Government of Mexico created LitioMx as a decentralized public organism of the Federal Public Administration and coordinated by the Ministry of Energy, with its own legal personality and assets and with technical, operational and management autonomy. The objective of LitioMx will be the exploration, exploitation, benefit and use of lithium, located in national territory, as well as the administration and control of the economic value chains of such mineral.
·        According to the Mining Chamber of Mexico (CAMIMEX), a total of 822 mining projects remain on hold and represent an amount of USD $959M, which are still waiting for better conditions to be able to reactivate. Jaime Núñez, president of CAMIMEX stated that is essential to encourage exploration since unfortunately in the last seven years we have seen a decrease in investments in exploration, leaving several projects on standby.
·        Jaime Gutierrez Núñez, president of CAMIMEX stated that small-scale coal mining is like “the blood diamonds” of Africa, and that the Federal Electricity Commission (CFE) should certify where the mineral it buys comes from and its conditions.
·        Mexico’s mining industry plans to invest USD $5.5B in 2022, 15.2% more than in 2021, but according to the Mexican Mining Chamber (CAMIMEX), it will remain below the record figure of USD $8.04B seen in 2012 amid difficult conditions. Growing security problems, a high tax burden and the government’s decision to stop granting concessions for projects have prevented investments in the sector from increasing faster, said CAMIMEX head Jaime Gutiérrez.
·        Mining in Mexico grew by 7.1% in 2021 despite friction with the government. According to CAMIMEX’s annual report, this increase positioned it as the only productive activity that recovered and even exceeded the fall of 2020, when the covid-19 pandemic initially stopped its operations because the government did not consider it “essential activity”. Even without tax incentives, the mining sector presented an increase in its contribution to the gross domestic product (GDP) going from 2.3% in 2020 to 2.5% in 2021, and an annual advance in the proportion of industrial GDP from 8.3% to 8.6% in the same period.
·        The Governor of Durango, José Rosas Aispuro, considered unfair that the mining-metallurgical sector is one of the economic sectors with the highest tax burden in the country, even though it is an enabler that prevents the migration of people in the communities where it develops its production processes, for job creation and social benefits. Mining Entrepreneurs stated that mining generates jobs and is one of the industries that pays the most taxes, since in 7 years it has contributed more than MXP $240,000M (approximately USD $12B) in taxes and other rights.
·        In Mexico there are more than 1,209 mining projects that have been developed in 26 states of the Republic, in which 406,179 jobs have been generated and a production value that already exceeds MXP $334,782M (approximately USD $16.7B). Among the main minerals extracted from these deposits are gold, copper, silver, zinc, iron, molybdenum, lead, fluorite, among others. For its exploration and exploitation, in 2021 alone, investments have been made for more than USD $4,810M and more than USD $5,538M are expected by the end of 2022. Of the 1,209 mining projects that exist in Mexico, 286 are in Sonora, Chihuahua has 160 and Durango has 128, which positions them as the entities with the greatest economic benefit thanks to mining concessions. Of the total number of projects, 749 correspond to precious metals; 180 to polymetallic minerals, 167 to copper, 71 to iron ore and the remaining 42 to other metals and minerals. According to the Mexican Mining Chamber (CAMIMEX), there are currently a total of 263 projects in the exploration stage, 76 in production, 39 in the development stage, while 822 projects are being postponed and 9 operations are reported as closed. However, the agency assures that, since the start of the current administration, the federal government has stopped granting permits or concessions for the exploration and development of new projects, since so far more than USD $959.7M dollars have not been invested. .
ON EXPLORATION
·        Colibri Resource Corporation reported results from the second half of its Phase 1 drill program completed on its Evelyn project, Sonora, and included 3,101m of RC drilling completed in 22 holes. In total, Phase 1 consisted of 6,223m of RC drilling in 42 holes.  Highlights include hole EVE22-042 with 0.17 g/t Au over 86m, including 0.32 g/t Au over 22m; hole EVE 22-043 with 0.92 g/t Au over 3m; hole EVE22-046 with 1.94 g/t Au over 2m, including 3.36 g/t Au over 1m; hole EVE22-044 with 0.63 g/t Au over 6m; hole EVE22-036 with 1.3 g/t Au over 1m; hole EVE22-033 with 1.92 g/t Au over 1m; hole EVE22-030 with 0.13 g/t Au over 87m, including 0.34 g/t Au over 8m; hole EVE22-029 with 1.39 g/t Au over 5m; and hole EVE22-028 with 0.13 g/t Au over 19m. In addition to drilling, Colibri is completing the geological mapping as well as conducting soil sampling to infill the historical property wide soil surveys.
·        Tocvan Ventures Corp., informed that seven holes were completed at its Pilar project in Sonora, totalling 1,382m and released results from the three first drill holes where the most significant drill intercepts was encountered in hole JES-22-67 with 0.4 g/t Au over 30.5m, including 7.6 g/t Au over 1.5m. Results are pending for the remaining four holes.
ON MINING
·        Guanajuato Silver Company Ltd., reported Q2, 2022 production and financial results from their El Cubo and Pinguico mines in Guanajuato (all amounts in American dollars). The company milled 94,212 tonnes to produce 155, 912 Oz Ag and 2,161 Oz Au (or 337,760 Oz AgEq) wit metallurgical recoveries of 80.91% and 82.52% respectively, at cash and all included sustaining cost (AISC) of $16.98 and $24-06 per Oz AgEq respectively. Guanajuato Silver reported revenue of $6.13M; cost of sales of $7.8M; mine operating loss of ($1.66M); net loss of ($3.5M); EBIDTA of ($1.1M); and working capital of ($2.04M). The company sold 159,840 Oz Ag, and 2,195 Oz Au (or 342, 987 Oz AgEq) at realized prices of $22.56 and $1,873 per Oz respectively.
·        Discovery Silver Corp., reported Q2, 2022 financial results (all amounts in Canadian dollars). The company reported cash and cash equivalents of $63.6M; total assets of  $101.8M; total current liabilities of $2.54M; working capital of $62.5M; and total shareholder´s equity of $99.2M.
·        Minera Alamos Inc., reported Q2, 2022 production and financial results from its Santana mine in Sonora (all amounts in Canadian dollars). The company reported that monthly mine production rates were approximately 300K tonnes, but with the opening of the Nicho Main Zone during Q2, the company is now in the position to ramp up production levels. Alamos sold 3,128 Oz Au and reported revenues of $7.3M; cost of goods sold of  $3.26M; direct cost of production of $16 per Oz; income from operations of  $2.6M; net income of $2.7M; cash and cash equivalents (including marketable securities) of  $9M; and working capital of $17M.
·        Orogen Royalties Inc., announced Q2, 2022 financial results (all amounts in Canadian dollars). The company reported revenue of $959.8K comprised from the Ermitaño royalty and $17.5K generated from prospect generation activities; project generation cost of $433.5K and recovered $448.9K in expense reimbursement from partners on optioned projects; general and administrative expenses of $875.2K; loss of $754.8K; net loss from operations of $648.6K; cash and cash equivalents from operating activities of $131.3K; cash from operating activities excluding changes in cash-cash working capital of $257.9K ; and working capital of $10.5M including $3.05M in cash and cash equivalents and $5.13M in short term investments and no long-term debt.
ON FINANCING
·        Canasil Resources Inc., announced a non-brokered private placement for gross proceeds of up to $550K. Gross proceeds will be used to fund the company´s exploration programs (Nora project, Durango).
·        Minera Alamos Inc., arranged a USD $3M working capital facility and announced a closed a USD $4.35M equity raise of common shares at $0.55/share. The combination of both enhancing the company´s working capital position as development work extends to the advancement of the Cerro de Oro project in Zacatecas.
·        Eric Sprott announced that 18,333,333 common share purchase warrants of Orex Minerals Inc., expired unexercised representing a decrease in holdings of approximately 7.2% of the outstanding common shares on a partially diluted basis since the date of the last early warning report. As a result of the warrants expiry, Mr. Sprott now beneficially owns and controls 36,666,666 shares representing approximately 19.6% of the outstanding shares on a noun-diluted basis.
ON RESOURCES AND DEVELOPMENT
·        Discovery Silver Corp., reported Q2, 2022 results from its flagship Cordero project, Chihuahua. The company reported that initial results from the Preliminary Feasibility Study (PFS) metallurgical work had recoveries of 90-95% for Ag, Pb, and Zn. It also reported that Phase 2 drilling program intercepted excellent grades below the Preliminary Economic Assessment (PEA) pit including hole C21-564 with 95 g/t Ag, 0.21 g/t Au, 1.9% Pb, and 4.5% Zn (337 g/t AgEq) over 33.9m, and hole C21-560 with 234 g/t Ag, 0.15 g/t Au, 3.8% Pb, and 6.5% Zn (606 g/t AgEq) over 18.1m, as well as hole C22-610 collared outside the current resource with 115 g/t Ag, 0.05 g/t Ag, 3.7% Pb, and 4.1% Zn (388 g/t AgEq) over 32.6m, including 187 g/t Ag, 0.05 g/t Au, 6.5% Pb, and 7.2% Zn (660 g/t AgEq) over 17.8m.
·        Minera Alamos Inc., provided an update on its Cerro de Oro project, Zacatecas. The company informed the sign off of the documentation for its Cerro de Oro project surface rights agreement in Zacatecas, allowing the company to move forward with the permitting process for the construction of its second gold operation in Mexico. Minera Alamos also informed that the NI 43-101 compliant Preliminary Economic Assessment (PEA) is nearly to be completed and is expected to get it done by next month.
·        Oroco Resource Corp., successfully tested the western side of the North Zone at its Santo Tomas project in Sinaloa by drilling 3,050m. Drilling has confirmed and expanded the 2009 Grade shell model of Cu > 0.30% derived from the historical drilling described in the Company’s 2019 Technical Report. A total of 26 holes (18,136 m of drilling) have now been completed in the North Zone, spanning 1,100m of strike length, with intersections of good grade mineralization returned in all holes for which the Company has received assays. Highlights of the last holes collared at the western side of the North Zone include hole N015 with 0.31% Cu, 0.009% Mo, 0.025 g/t Au, and 2 g/t Ag (0.36% CuEq) over 292m; hole N016 with 0.32 g/t Cu, 0.006% Mo, 0.032 g/t Au, and 2 g/t Ag (0.73% CuEq) over 95.4m, plus 0.39% Cu, 0.016%Mo, 0.022 g/t Au, and 4 g/t Ag (0.46% CuEq) over 44.7m, plus 0.26% Cu, 0.010% Mo, 0.014 g/t Au, and 2 g/t Ag (0.31% CuEq) over 88.7m; hole N017 with 0.31% Cu, 0.011% Mo, 0.02 g/t Au, and 2 g/t Ag (0.73% CuEq) over 63.8m, plus 0.22% Cu, 0.01% Mo, 0.02 g/t Au, and 1 g/t Ag (0.28% CuEq) over 159.2m; and hole N018 with 0.36% Cu, 0.011% Mo, 0.017 g/t Au, and 3 g/t Ag (0.42% CuEq) over 21m, plus 0.65% Cu, 0.012% Mo, 0.019 g/t Au, and 3 g/t Ag (0.68% CuEq) over 10m, plus 0.33% Cu, 0.012% Mo, 0.017 g/t Au, and 2 g/t Ag (0.38% CuEq) over 42.3m. The Company will commence a drill program targeted at testing the South Zone in 2022.  
ON DEALS AND CORPORATE ISSUES
·        Monumental Minerals Corp., announced that its common shares are now trading on the OTCQB Venture Market under the symbol MNMRF (Jemi project, Coahuila).
·        Argonaut Gold Inc., announced the appointment of its Vice President, Canadian Operations, effective August 29, 2022 (La Colorada mine, Sonora).
·        Aztec Minerals Corp., purchased indirectly from Kootenay Silver Inc., 35% interest in the Cervantes property in Sonora by issue 10M common shares at a price of CAD $0.25 per Aztec share for aggregate consideration of CAD $2.5M. Kootenay will retain a 0.5% Net Smelter Returned Royalty. Following the closing of the Transaction, Kootenay owns a total of 10.68M Aztec shares, which represents approximately 11.85% of the issued and outstanding Aztec shares on an undiluted basis.
·        Colibri Resource Corporation announced reinstatement of trading of its common shares on the TSX Venture Exchange. The shares will re-open for trading on the Exchange at the opening of trading on Monday, August 29. The company also announced the appointment of its new CFO (Evelyn 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, boiling texture in a low-intermediate epithermal vein system in a project in Durango, Mexico.  Photo by Miguel A Heredia.

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

Banded calcite vein

By Miguel A Heredia

During the 32nd week of the year (August 08th to August 14th, 2022), at least 27 press releases were announced by companies working in Mexico, and 2 news published by the media with twelve communicating production and financial results, four disclosing deals and corporate issues, three commenting on Mexican issues, three reporting resources and developments of their properties, three informing on exploration results, two announcing financing issues, and two discussing social issues. ON MEXICO ISSUES, Vizsla Silver, GR Silver, and Defiance Silver reported the best drilling intercepts in Mexico on the second week of August, 2022. According to a report from the Secretariat of Labor and Social Security, in the last three years, 979 mine inspections have been carried out throughout the country, of which 387 have been carried out in the coal zone of Sabinas, Coahuila. The General Directorate of Mines of the Ministry of Economy provisionally suspended works on 10 mining concessions in Sabinas Coahuila. ON EXPLORATION, In Coahuila, Monumental Minerals announced results of a recently satellite multispectral interpretation covering its Jemi Heavy Rare Earth Elements project. In Durango, Silver Wolf released 155 grab sample results collected during the ongoing surface sample program at its Ana Maria project which has returned some high-grade values up to 1,536 g/t Ag, 34% Pb, and 19.4% Zn. In Zacatecas, Defiance Silver provided an update on the 4,750m maiden drill program at its Lucita project, within its Zacatecas Silver property.  ON MINING, Argonaut reported Q2, 2022 production results from their Mexican mining operations. Aura provided a production guidance for 2022 on its Aranzazu mine in Zacatecas where it expects to produce between 115-120K Oz AuEq at cash cost between USD $645-690 per Oz AuEq produced.  Avino reported Q2, 2022 production and financial results from its Avino mine, Durango. Capstone reported Q2, 2022 production results from its Cozamin mine, Zacatecas. Endeavour reported Q2, 2022 production and financial results from their Guanacevi and Bolañitos mines in Durango and Guanajuato respectively. Gatos Silver reported Q2, 2022 production and financial results from its Cerro Los Gatos mine, Chihuahua. GoGold reported Q2, 2022 production and financial results from its Parral Tailings project, Chihuahua.  Golden reported Q2, 2022 production and financial results from its Rodeo mine, Durango. Orla reported Q2, 2022 production and financial results from its Camino Rojo mine, Zacatecas. SilverCrest reported Q2, 2022 production and financial results from its Las Chispas project, Sonora. Americas reported Q2, 2022 production results from its Cosala mine in Sinaloa. ON FINANCING, Advance announced a non-brokered private placement to raise gross proceeds of up to $200K (Sarape project, Sonora). Fabled informed about an extension of its non-brokered private placement (Santa Maria project, Chihuahua). Fortuna Silver reported Q2. 2022 from its San Jose mine, Oaxaca.  GoGold reported Q2, 2022 production and financial results from its Parral Tailings project, Chihuahua. Golden Minerals reported Q2, 2022 production and financial results from its Rodeo mine, Durango. ON RESOURCES AND DEVELOPMENT, GR Silver reported a new Ag discovery SE of its San Marcial Resource Area on its wholly-owned Plomosas project, Sinaloa. Pan American Silver reported Mineral Reserves and Mineral Resources as at June 30, 2022 for their Mexican properties. Vizsla released results from 26 new drill holes targeting the Tajitos-Copala resource area at its 100%-owned flagship Panuco project in Sinaloa.  ON DEALS AND CORPORATE ISSUES, Prismo announced that its common shares are now eligible for electronic clearing and settlement in the United States through the Depository Trust Company (“DTC”). Consolidated Zinc made several management changes (Plomosas mine, Chihuahua). Advance Lithium sold its royalty on three claims in Kenya to Orogen for USD $120K and the transfer of the 100% ownership of its Sarape property, Sonora. Kootenay amended the schedule on the final payment of its option agreement for 100% of the Columba high-grade silver project, Chihuahua.  ON SOCIAL RESPONSIBILITY, First Majestic released its 2021 Sustainability report. Peñoles and Fresnillo plc promote entrepreneurs.

ON MEXICO ISSUES

  • Vizsla Silver, GR Silver and Defiance Silver reported the best drilling intercepts in Mexico on the second week of August, 2022. Details are shown in the table below:
  • According to a report from the Secretariat of Labor and Social Security, in the last three years, 979 mine inspections have been carried out throughout the country, of which 387 have been carried out in the coal zone, which means that “39% of all the mining inspections that have been carried out in the coal zone of Sabinas (Sabinas, Nueva Rosita, Palau)”. In the coal region, in these three years, 27 mining operations have been closed; that is, 84% of all mine closures in the country, due to non-compliance with security measures; to date 15 remain in force. In addition, the Ministry of Economy has been informed of the existence of 12 concessions that presumably could have irregularities.
  • The General Directorate of Mines of the Ministry of Economy provisionally suspended the works on 10 mining concessions in Sabinas Coahuila, on August 11, until the employers or representatives of each of the work centers certify compliance with the measures dictated in each one of the respective files after the inspections carried out by the Ministry of Labor and Social Security (STPS). The then General Director of Mines did not proceed with the provisional suspension of the works, arguing that the STPS information on the 10 previously mentioned mining concessions did not coincide with the registry data held by the General Directorate of Mines. Considering this and other possible irregularities, the Directors of Mines and Obligations were dismissed last June with the purpose of investigating and, where appropriate, establishing the corresponding responsibilities.

ON EXPLORATION

  • Monumental Minerals Corp., announced results of a recently satellite multispectral interpretation covering its Jemi Heavy Rare Earth Elements project in Coahuila. The interpretation highlighted discreet areas that may host eudialyte-bearing dykes, veins, and disseminations. Eudialyte is a Na, Ca, Fe/Mn, Zr silicate mineral that can contain up to 10% Rare Earth Elements, and 12% ZrO2. The Aster satellite spectral data also identified several areas prospective for Cu-Zn-Pb-Ag carbonate replacement deposits.
  • Silver Wolf Exploration Ltd., released 155 grab sample results collected during the ongoing surface sample program at its Ana Maria project, Durango, which has returned some high-grade values of Ag, Pb, and Zn.  From the 155 samples collected by Silver Wolf, 30 returned values >100 g/t Ag, 73 returned > 0.5% Pb, and 59 returned > 0.5% Zn with peaks of 1,536 g/t Ag, 34% Pb, and 19.4% Zn.  These results combined with the anomalies generated in the geophysical and remote sensing surveys will provide a basis for prioritizing drill targets.
  • Defiance Silver Corp., provided an update on the 4,750m maiden drill program at its Lucita project, within its Zacatecas Silver property. Drilling has encountered multiple intercepts over 199 g/t Ag and individual high-grade silver intervals. Drilling highlights include hole DDLU-22-10 with 0.20 g/t Au and 264 g/t Ag over 3.05m, including 0.19 g/t Au and 668 g/t Ag over 0.77m, plus 0.37 g/t Au and 166 g/t Ag over 4.01m, including 0.57 g/t Au and 220 g/t Ag over 22.72m, including 1.13 g/t Au and 416 g/t Ag over 1.22m, plus 0.08 g/t Au and 235 g/t Ag over 2.25m, including 0.19 g/t Au and 737 g/t Ag over 0.53m, plus 0.03 g/t Au and 189 g/t Ag over 0.75m, plus 0.04 g/t Au and 108 g/t Ag over 0.88m; and hole  DDLU-22-13 with 0.04 g/t Au and 147 g/t Ag over 1.57m, plus 0.04 g/t Au and 150 g/t Ag over 2m, including 0.2 g/t Au and 843 g/t Ag over 0.3m, plus 0.09 g/t Au and 109 g/t Ag over 1.15m. “The inaugural drill program at Lucita central (Palenque vein system) confirmed the presence of high-grade, Fresnillo-style, low to intermediate-sulfidation epithermal silver mineralization, consisting of mainly of pyrargyrite (high-level sulfosalt) and silver sulfides that potentially indicate the higher-level setting of a zoned epithermal system. Follow-up drilling is planned for later this year at the newly discovered zones of mineralization at Palenque and Tahures”.

ON MINING

  • Argonaut Gold Inc., reported Q2, 2022 production results from their Mexican mining operations. At El Castillo mine, Durango, Argonaut mined 1,471,000 tonnes of 0.30 g/t Au to produce 12,047 Oz Au and 10,407 Oz Ag (12,178 Gold Equivalent Ounces (GEOs)), and sold 11,463 Oz Au and 11,293 Oz Ag (11,603 GEOs) at a cash cost of  USD $1,513 per Oz Au sold. At San Agustin mine, Durango, the company mined 2,954,000 tonnes of 0.29 g/t Au to produce 18,033 Oz Au and 88,160 Oz Ag (19,135 GEOs), and sold 18,656 Oz Au and 93,420 Oz Ag (19,824 GEOs) at a cash cost of USD $1,009 per Oz Au sold. At La Colorada mine, Sonora, Argonaut mined 976,000 tonnes of 0.44 g/t Au to produce 12,950 Oz Au and 35,191 Oz Ag (13,390 GEOs), and sold 13,322 Oz Au and 38,194 Oz Ag (13,799 GEOs) at a cash cost of USD $1,003 per Oz Au sold.
  • Aura Minerals Inc., provided a production guidance for 2022 on its Aranzazu mine in Zacatecas where it expects to produce between 115-120K Oz AuEq at cash cost between USD $645-690 per Oz AuEq produced.
  • Avino Silver & Gold Mines Ltd., reported Q2, 2022 production and financial results from its Avino mine, Durango. The company mined 118,224 tonnes to produce 225.5K Oz Ag, 1,350 Oz Au, and 1.64M Lb Cu (649.6K Oz AgEq), and sold 594.7K Oz AgEq at cash and AISC of USD $8.39 and USD $15.95 respectively per Oz AgEq sold. Avino reported revenues of USD $9.4M; operating income of USD $3.9M; non-cash depreciation and depletion of USD $4.4M; net income of USD $2.3M; earnings before interest, taxes, depreciation and amortization (EBIDTA) of USD $4.1M; adjusted earnings of USD $2.5M, operating cash flow (before working capital changes of USD $2.5M; and free cash flow of USD $1.5M. Cash balance reported at June 30, 2022 of USD $12.8M and working capital of USD $14.3M.
  • Capstone Copper Corp., reported Q2, 2022 production results from its Cozamin mine, Zacatecas. The company produced 14.33M Lb Cu at a cash cost of USD $1.25 per Lb Cu produced.
  • Endeavour Silver Corp., reported Q2, 2022 production and financial results from their Guanacevi and Bolañitos mines in Durango and Guanajuato respectively. At Guanacevi, Durango, Endeavour processed 94,017 tonnes to produce 1.19M payable Oz Ag and 3,680 payable Oz Au at cash cost of USD $10.35 per Oz Ag, total  production cost of USD $12.90 per Oz Ag, direct operating cost per tonne of USD $170.75, and direct cost per tonne of USD $201.84 . At Bolañitos mine, Guanajuato, the company processed 107,344 tonnes to produce 155.7K payable Oz Ag and 5,609 payable Oz Au at cash cost of USD $8.01 per Oz Ag, total production cost of USD $24.66 per Oz Ag, direct operating cost per tonne of USD $99.25, and  direct cost per tonne of USD $101.05. Consolidated results summarize 201.4K tonnes processed to produce 1.36M payable Oz Ag and 9.3K payable Oz Au (2.1M Oz AgEq) at cash cost of USD $10.18 per Oz Ag, AISC of USD $19.56 per Oz Ag, total production cost of USD $14.26 per Oz Ag, direct operating cost per tonne of USD $132.63, and direct cost per tonne of USD $148.11. The company reported revenues of USD $30.8M from 602.9K Oz Ag sold and 9.8K Oz Au sold at realized prices of USD $22.72 and USD $1,840 per Oz Ag and Oz Au respectively. It also reported a net earnings (loss) of USD $11.9M, adjusted earnings (loss) of USD $4.3M), mine operating earnings of USD $4.5M, mine operating cash flow before taxes of USD $8.8M, operating cash flow before working capital changes of USD $3.6M, and working capital of USD $149.7M.
  • Fortuna Silver Mines Inc., reported Q2. 2022 from its San Jose mine, Oaxaca. The company mined 251.9K tonnes of 187 g/t Ag and 1.13 g/t Au, both with metallurgical recoveries of 91% to produce 1.38 M Oz Ag and 8.3K Oz Au. Fortuna sold 1.42M Oz Ag and 8.6K Oz Au at realized prices of USD $22.56 and USD $1,873 per Oz Ag and Au respectively at a production cash cost per tonne of USD $83.57, production cash cost per Oz Ag Eq of USD $11 and AISC per Oz AgEq of USD $15.41.
  • Gatos Silver Inc., reported Q2, 2022 production and financial results from its Cerro Los Gatos mine, Chihuahua. The company milled 211,350 tonnes of 374 g/t Ag, 0.38 g/t Au, 2.79% Pb, and 5.03% Zn with metallurgical recoveries of 90.4%, 48.9%, 90.5%, and 66.4% respectively to produce 2.3M Oz Ag, 1.27K Oz Au, 11.8M Lb Pb, and 15.6M Lb Zn. Gatos Silver reported unaudited sales of USD $57.2M, cost of sales of USD $27.8M, royalties of USD $1M, G & A expenses of USD 3.6M, other expenses of USD $0.7M, capital expenditures of USD $20.5M, and cash balance of USD $40M as of June 30, 2022.
  • GoGold Resources Inc., reported Q2, 2022 production and financial results from its Parral Tailings project, Chihuahua. The company produced 213.5K Oz Ag, 3,081 Oz Au, and 219.5K Lb Cu at a cash and AISC of USD $13.17 and USD $17.73 per Oz AgEq respectively. GoGold reported revenues of USD $10.4M from the sale of 512.7K Oz AgEq at a realized price of USD $20.26 per Oz AgEq. It also reported cost of sales including depreciation of USD $7.9M, operating income of USD $221K, net income of USD $1.1M, free cash before working capital changes of USD $3.7M, and cash of USD $73.8M.
  • Golden Minerals Company reported Q2, 2022 production and financial results from its Rodeo mine, Durango. Golden produced 3,004 payable Oz Au and 12,768 payable Oz Ag (3,158 payable Oz AuEq) and sold 3,219 Oz AuEq at a realized price of USD $1,865 per Oz Au and USD $22.49 per Oz Ag. The total cash cost net of Ag byproduct credits was USD $1,426 per Oz AuEq. Golden reported revenues of USD $5.9M, net operating margin of USD $1.3M, cash and cash equivalent balance as of June 30, 2022 of USD $9.5M, and a net loss of 2.8M or USD $0.02 per share.
  • Orla Mining ltd., reported production and financial results from its Camino Rojo mine, Zacatecas. The company produced 25,672 Oz Au and sold 25,431 Oz Au at an average price of USD $1,872 per Oz, and cash and AISC of USD $439 and USD $601 respectively. Orla reported revenues of USD $47.8M, cost of sales-operating cost of USD $10.8M, adjusted earnings of USD $11M, cash flow from operating activities before changes in non-cash working capital of USD $20.7M, free cash flow of USD $28.7M, cash and cash equivalents as at June 30, 2022 of USD $66.7M, and a net debt of USD $100.3M.
  • SilverCrest Metals Inc., reported Q2, 2022 production and financial results from its Las Chispas project, Sonora. The company milled 12,700 tonnes of low-grade from historic stockpiles. At the end of June, 2022 it produced its first precious metal pour consisting of 312Kg of doré with approximately 2,200 Oz Ag and 100 Oz Au. SilverCrest reported cash and cash equivalents of USD $118.6M remaining under a USD $120M project financing facility, a value-added taxes (IVA) receivable in Mexico of USD $26.3M, an inventory of USD $19.4M, and mineral property, plant and equipment of USD $200M.
  • Americas Gold and Silver Corporation reported Q2, 2022 production results from its Cosala mine in Sinaloa. It produced 128K Oz Ag, 3.9M Lb Pb, and 9.9M Lb Zn. Americas provided 2022 production guidance and expect to produce between 0.7-0.9M Oz Ag, 13-15M Lb Pb, and 36-40M Lb Zn.

ON FINANCING

  • Advance Lithium Corp., announced a non-brokered private placement to raise gross proceeds of up to $200K. Gross proceeds will be used to advance its Sarape project in Sonora and for general corporate purposes.
  • Fabled Silver Gold Corp., informed about an extension of its non-brokered private placement by 30 days starting this August 8, 2022 (Santa Maria project, Chihuahua).

ON RESOURCES AND DEVELOPMENT

  • GR Silver Mining Ltd., reported a new Ag discovery SE of its San Marcial Resource Area on its wholly-owned Plomosas project, Sinaloa. Hole SMS22-10 encountered 308 g/t Ag, 0.02 g/t Au, 0.1% Pb, and 0.3% Zn over 101.6m, including 7,139 g/t Ag, 0.04 g/t Au, 1,6% Pb, and 1.3% Zn over 0.8m, plus 3,065 g/t Ag, 0.1% Pb, and 0.2% Zn over 0.3m, plus 1,774 g/t Ag, 0.01 g/t Au, 0.1% Zn over 0.20m, plus 1,508 g/t Ag, 0.1% Zn over 0.2m, plus 1,285 g/t Ag, 0.04 g/t Au, 0.1% Pb, and 0.5% Zn over 0.3m, plus 1,004 g/t Ag, 0.06 g/t Au, 0.2% Pb, and 0.3% Zn over 4.1m, plus 1,579 g/t Ag, 0.06 g/t Au, and 0.1% Zn over 0.4m, plus 1,017 g/t Ag, 0.15 g/t Au, 0.4% Pb, and 0.7% Zn over 0.3m, plus 414 g/t Ag, 0.05 g/t Au, 0.4% Pb, and 0.9% Zn over 16.2m, including 1,405 g/t Ag, 0.2 g/t Au, 0.8% Pb, and 1.9% Zn over 1.3m. “The hole was drilled 250 m to the SE of the San Marcial Resource Area, where the Company has been exploring the extension of the target contact between upper and lower volcanic units, which typically hosts the San Marcial Breccia Ag mineralization, together with strong ground magnetic anomalies delineated in 2021. This new, wide, high-grade silver discovery coincides with an inflexion in the NW-SE trending contact where it intersects with two key NE-SW trending faults. This defines a highly prospective target for continued drilling, both along strike and down dip”.
  • Pan American Silver Corp., reported Mineral Reserves and Mineral Resources as at June 30, 2022 for their Mexican properties. At La Colorada, Zacatecas the company reported proven reserves of 3.8M tonnes with average grades of 340 g/t Ag and 0.23 g/t Au for a total of 41.5M Oz Ag and 27.5K Oz Au contained, and probable reserves of 6.2M tonnes with grades of 303 g/t Ag and 0.18 g/t Au for a total of 59.9M Oz Ag and 36K Oz Au contained. The company also reported measured resources of 1.9M tonnes with grades of 216 g/t Ag and 0.14 g/t Au for a total of 13M Oz Ag and 8.2K Oz Au, indicated resources of 3.4M tonnes with grades of 191 g/t Ag and 0.17 g/t Au for a total of 20.8M Oz Ag and 18K Oz Au contained, and inferred resources of 14.9M tonnes with grades of 195 g/t Ag and 0.2 g/t Au for a total of 93.9M Oz Ag and 98.4K Oz Au contained. At Dolores, Chihuahua, probable reserves reported are 4.1M tonnes of 18 g/t Ag and 0.6 g/t Au for a total of 2.4M Oz Ag and 77.7K Oz Au contained, while inferred resources are 2.5M tonnes with grades of 29 g/t Ag and 0.92 g/t Au for  a total of 2.4M Oz Ag and 74.4K Oz Au. At La Bolsa, Sonora, Pan American reported inferred resources of 13.7M tonnes with grades of 8 g/t Ag and 0.51 g/t Au for a total of 3.3M Oz Ag and 224.8K Oz Au contained. Reported mineral resources do not include amounts identified as mineral reserves. Mineral resources that are not mineral reserves have no demonstrated economic viability.
  • Vizsla Silver Corp. released results from 26 new drill holes targeting the Tajitos-Copala resource area at its 100%-owned flagship Panuco project in Sinaloa. Drilling highlights include hole CS-22-191 with 133 g/t Ag and 0.48 g/t Au (158 g/t AgEq) over a true width (TW) of 1.39m, plus 706 g/t Ag and 4.93 g/t Au (1,011 g/t AgEq) over a TW of 12.52m, including 3,880 g/t Ag and 27.7 g/t Au (5,602 g/t AgEq) over a TW of 1.26m, plus 1,245 g/t Ag and 8.24 g/t Au (1,751 g/t AgEq) over a TW of 1.26m, plus 1,425 g/t Ag and 10.65 g/t Au (2,092 g/t AgEq) over a TW of 0.42m; hole CS-22-173 with 663 g/t Ag and 2.90 g/t Au (826 g/t AgEq) over a TW of 14.46m, including 1,375 g/t Ag and 7.19 g/t Au (1,796 g/t AgEq) over a TW of 0.78m, including 1,501 g/t Ag and 5.49 g/t Au (1,791 g/t AgEq) over a TW of 0.93m, plus 1,655 g/t Ag and 8.05 g/t Au (2,118 g/t AgEq) over a TW of 0.78m, plus 1,505 g/t Ag and 5.93 g/t Au (1,826 g/t AgEq) over a TW of 1.37m; hole CS-22-159 with 285 g/t Ag and 2.12 g/t Au (418 g/t AgEq) over a TW of 10.50m, including 493 g/t Ag and 18.3 g/t Au (1,775 g/t AgEq) over a TW of 0.56m, plus 1,025 g/t Ag and 4.61 g/t Au (1,285 g/t AgEq) over a TW of 0.71m; and hole CS-22-181 with 165 g/t Ag and 0.52 g/t Au (191 g/t AgEq) over a TW of 1.70m, plus 832 g/t Ag and 3.85 g/t Au (1,051 g/t AgEq) over a TW of 3.44m, including 1,725 g/t Ag and 11 g/t Au (2,396 g/t AgEq) over a TW of 0.68, plus 1,501 g/t Ag and 4.98 g/t Au (1,754 g/t AgEq) over a TW of 0.81m.

ON DEALS AND CORPORATE ISSUES

  • Prismo Metals Inc., announced that its common shares are now eligible for electronic clearing and settlement in the United States through the Depository Trust Company (“DTC”). It will simplify the process of trading and enhance liquidity of Prismo shares in the United States. The Company’s shares recently began trading on the OTCQB® Venture Market (“OTCQB”) under the ticker symbol PMOMF (Palos Verdes project, Sinaloa).
  • Consolidated Zinc Limited made several management changes. The company announced the retirement and replacement of its non-executive Chairman, the appointment of a new member of its Board of Directors, and the appointment of its Exploration Manager. All Board changes are effective September 1, 2022 (Plomosas mine, Chihuahua).
  • Advance Lithium Corp., sold its royalty on three claims in Kenya to Orogen Royalties Inc., for USD $120K and the transfer of the 100% ownership of the Sarape property, Sonora. Orogen will retain a 1.5% royalty on the Sarape property.
  • Kootenay Silver Inc., amended the schedule on the final payment of its option agreement for 100% of the Columba high-grade silver project, Chihuahua. The amended agreement splits the final November 2022 payment into a series of payments due in August, November, December 2022 and January, April, and May of 2023. Payments range from USD $215K (August 2022 and May 2023) to USD $480K (November 2022) and USD $430K (December 2022, January, and April 2023).

ON SOCIAL RESPONSIBILITY

  • First Majestic Silver Corp., released its 2021 Sustainability report summarizing the Company´s Environmental, Social and Governance (ESG) performance. CEO of the company stated that their effort in 2021 demonstrated their commitment to sustainability and to improving lives and communities in our host regions while increasing shareholder value, as well as driving positive changes for society and delivering long-term benefits for all First majestic shareholders.
  •  Industrias Peñoles S.A.B. de C.V., and Fresnillo plc promote entrepreneurs providing tools to micro and small entrepreneurs from the communities neighboring their operations through a training and advisory program for the strengthening and creation of proudly local and Mexican companies. Both Peñoles and Fresnillo plc have given nearly 249 workshops for entrepreneurs, with the support of the social organization ProEmpleo. In parallel, the companies and the organization work on the abilities and skills of the participants who seek the continuity of their projects and reinforce them with actions to make them competitive in their local environment. To date, more than 3,800 people have benefited and 203 new companies have been created, which in turn generated 534 direct jobs; 74% of the total number of companies created continue to operate.

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 banded calcite vein with Manganese Oxides from an intermediate sulphidation epithermal vein system in Chihuahua, Mexico.  Photo by Miguel A Heredia.

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

Hydrothermal Brecia

By Miguel A Heredia

During the 30th week of the year (July 25th to July 31st, 2022), at least 25 press releases were announced by companies working in Mexico, and 8 news published by the media with ten disclosing deals and corporate issues, six communicating production and financial results, six commenting on Mexican issues, four reporting resources and developments of their properties, three announcing financing issues, two informing on exploration results, and two discussing social issues. ON MEXICO ISSUES, Mithril Resources, Vizsla Silver, and Southern Silver reported the best drilling intercepts in Mexico on the fourth week of July, 2022. The biggest Mexican mining companies suffered a decrease in metal production between April and June of this year. Minera El Boleo´s representatives did not attend, for the second time, the meeting called by the General Directorate for Conciliation of Collective Affairs.  The mining sector in Mexico: factor of economic growth and social development. ON EXPLORATION, In Sonora, Aztec Minerals commenced a 3,000m core drilling program as a follow-up of its recent Phase 2 RC drilling program at its Cervantes project. In Sinaloa, Prismo received an extension to its environmental permit to drill its Palos Verdes project.  ON MINING, Alamos Gold reported Q2, 2022 production and financial results from its Mulatos mine in Sonora.  Agnico reported Q2, 2022 production and financial results from their Pinos Altos mine, Chihuahua and La India mine, Sonora. Starcore reported year end 2022 production and financial results for its San Martin mine, Queretaro. Mag Silver-Fresnillo plc JV reported Q2, 2022 production results from its Juanicipio project, Zacatecas. Sierra Metals reported Q2, 2022 production results from their Bolivar and Cusi mines in Chihuahua.  ON FINANCING, Silver Spruce announced the first closing of a private placement for gross proceed of up to $117,250 (El Mezquite project, Sonora). Bear Creek entered into a USD $5M loan facility with Auramet (Mercedes mine, Sonora). Elemental Royalties announced that its 1% Net Smelting Return (NSR) royalty on the Mercedes mine, Sonora is now payable.  ON RESOURCES AND DEVELOPMENT, Osisko Development filed a technical report to present and support the results of the Mineral Resource Estimate for its San Antonio Gold project, Sonora. Southern Silver released results from the ongoing drilling program at its Cerro Las Minitas project, Durango. Vizsla released results from nine holes targeting the southern extension of the Napoleon Vein at its Panuco project, Sinaloa. Mithril released results from its ongoing drill program on the western end of its El Refugio resource area at its Copalquin project, Durango.  ON DEALS AND CORPORATE ISSUES, Monumental announced that its common shares are now eligible for electronic clearing and settlement in the United States through the Depository Trust Company (DTC) (Jemi project, Coahuila). Orogen acquired royalties in the Sarape property in Sonora by paying USD $120K to Advance Lithium Corp. Aura Minerals announced the appointment of a new member to its Board of Directors (Aranzazu mine, Zacatecas). Aztec Minerals became 100% owner of the Cervantes project in Sonora.  Azure completed the sale of its Mexican assets to Bendito Resources. Sierra Madre announced the appointment of its new CFO (La Tigra project, Nayarit).  Prismo began trading on the OTCQB under the symbol PMOMF (Palos Verdes project, Sinaloa). Colibri announced that it has filed audited and unaudited financial statements, management discussions and analyses, and officer certifications on the System for Electronic Document Analysis and Retrieval (SEDAR) (Evelyn project, Sonora). Excellon announced the appointment of its Chief Legal Officer & VP, Corporate Affairs (La Platosa mine, Durango). ON SOCIAL RESPONSIBILITY, Fresnillo plc donated two garbage trucks to the Municipality of Fresnillo, Zacatecas. Grupo Mexico announced an investment of MXP $38,000M (about USD $1.9 B) to expand its mining operations that will generate 11,000 jobs in the next five years in Sonora state.

ON MEXICO ISSUE

  • Mithril Resources, Vizsla Silver, and Southern Silver reported the best drilling intercepts in Mexico on the fourth week of July, 2022. Details are shown in the table below:
  • The biggest Mexican mining companies suffered a decrease in metal production between April and June of this year, so their results were under pressure in the second quarter of the year, so their results were under pressure in the second quarter of the year. The Grupo México consortium reported that its net profit fell 45.9%, due to lower copper production, the reduction in the price of said metal, as well as higher costs due to inflation. After the results were announced, the shares of the mining company fell 0.67% on the Mexican Stock Exchange (BMV), closing at 75.32 each.  Fresnillo plc reported that its gold production fell 20.6% in a year-on-year comparison, totaling 158,960 Oz Au from April to June against 200,163 Oz in 2021. In addition, it produced 13.66M Oz Ag in the quarter, a 3% annual reduction compared to 14.09M Oz in the same period of 2021.
  • Minera El Boleo´s representatives did not attend, for the second time, the meeting called by the General Directorate for Conciliation of Collective Affairs. The Delegate in Baja California Sur of the Mining Union described as a lack of respect and a company neglect of the federal government, and announced that the parties are summoned by the Federal Labor Court on Monday, August 1 at 1:00 p.m., to a meeting where the union will expose some modifications to the demands for which the strike broke out and continues. The strike has left more than a thousand basic employees without work and has caused a collapse in the economy of Santa Rosalía, with effects on the rest of the municipality where hundreds of micro, small and medium-sized entrepreneurs depend directly or indirectly on the economic income produced by this company with Korean capital, which is dedicated to the exploitation of copper and other minerals.
  • The mining sector in Mexico: factor of economic growth and social development. The Ministry of Economy of the federal government reports that in 2021, the mining sector in Mexico registered an increase of 16% in the investment received compared to 2020, amounting to USD $4,246M, a situation that confirms that this sector continues to remain one of the productive branches that attracts the most investment to the country. In 2021, mining contributed 3.06% to the National Gross Domestic Product (GDP) and 9.62% to the Industrial GDP.

ON EXPLORATION

  • Aztec Minerals Corp., commenced a 3,000m core drilling program as a follow-up of its successful recent phase 2 RC drilling program conducted at its Cervantes project, Sonora. The follow-up drill program will test California, California Norte and Jasper targets “to better define the open pit, heap leach gold potential of the porphyry gold oxide cap at California, evaluate the potential for deeper copper-gold porphyry sulfide mineralization underlying the oxide cap, test for northern extensions of the California mineralization at California North and northwestern extensions of the Jasper mineralization”.
  • Prismo Metals Inc., received an extension to its environmental permit to drill its Palos Verdes project in Sinaloa. This extension allows Prismo to drill on existing roads. The Secretariat of Environment and Natural Resources (SEMARNAT) is also reviewing an additional application for a permit for new road construction. The company plans to commence the drilling program in the first week of June.

ON MINING

  • Alamos Gold Inc., reported Q2, 2022 production and financial results from its Mulatos mine in Sonora. The company produced 20,200 Oz Au and sold 18,705 Oz Au, reporting total cash cost and an all included sustaining cost (AISC) of $1,566 and $1,636 respectively per Oz Au sold. Alamos reported operating revenues of $$35.1M, and capital expenditure of $21.3M. It also provided 2022 guidance and expects to produce between 130K-145K Oz Au at cash and AISC of $1,225-$1,275 and $1,325-1,375 respectively per Oz Au sold.
  • Agnico Eagle Mines Limited reported Q2, 2022 production and financial results from their Pinos Altos mine, Chihuahua and La India mine, Sonora. At Pinos Altos mine, Chihuahua, Agnico processed 366K tonnes of 2.02 g/t Au to produce 23K Oz Au, at a production cost of USD $109 per tonne; a production cost of USD $1,732 per Oz Au produced; and a total cash cost of USD $1,383 per Oz Au produced. At La India mine, Sonora, the company processed 1,358,000 tonnes of 0.52 g/t Au to produce 20K Oz Au at a production cost of USD $13 per tonne; a production cost of USD $872 per Oz Au produced; and a total cash cost of USD $936 per Oz Au produced.
  • Starcore International Mines Ltd., reported year end 2022 production and financial results for its San Martin mine, Queretaro. The company milled 55,400 tons of 1.58 g/t Au and 23 g/t Ag with metallurgical recoveries of 88.2% and 51.4% respectively, to produce 10K Oz Au and 85.4K Oz Ag (11.2K Oz AuEq) at a mine operating cash cost of USD $62 per tonne milled, and  mine operating cash cost of USD $1,239 per Oz AuEq. Starcore reported cash on hands of USD $8.8M; working capital of USD $9.1M; Au and Ag sales of USD $25.7M; earning from mining operations of USD $5.3M; net income of USD $2.4M; and EBITDA of USD $4.8M.
  • Excellon Resources Inc., reported Q2, 2022 production and financial results from its La Platosa mine, Durango. The company mined 21,481 tonnes and processed 23,550 tonnes of 449 g/t Ag, 4.2% Pb, and 4.7% Zn with metallurgical recoveries of 90.4%, 75.5%, and 86% respectively, to produce 307.5K Oz Ag, 1.65M Lb Pb, and 2.1M Lb Zn, and a total of 260.7K Oz Ag payable, 1.4M Lb Pb payable, and 1.62M Lb Zn payable.   Excellon reported revenue of USD $7.8M; a production cost of USD 244 per tonne; a total cash cost net of by-products of USD $13.81 per Oz Ag payable; All in sustaining cost (AISC) of USD $19.24 per Oz Ag payable; and a net working capital of USD $0.1M with a cash marketable securities of USD $2.9M.
  • Mag Silver Corp., -Fresnillo plc JV reported Q2, 2022 production results from its Juanicipio project, Zacatecas. On Q2, 2022, a total of 154,069 tonnes were processed with grades of 567 g/t Ag  to produce 2.37M Oz Ag and 5,5K Oz Au of which 1.04M Oz Ag and 2.5K Oz Au are attributable to Mag due to its 44% ownership on the Juanicipio project.
  • Sierra Metals Inc reported Q2, 2022 production results from their Bolivar and Cusi mines in Chihuahua. At Bolivar mine, Chihuahua, the company processed 256,372 tonnes of 0.63% Cu, 12 g/t Ag, and 0.24 g/t Au with metallurgical recoveries of 90.61%, 80.99%, and 65.93% respectively, to produce 3.2M Lb Cu, 83K Oz Ag and 1,283 Oz Au (4.2M Lb CuEq). At Cusi mine, Chihuahua, Sierra Metals processed 66,772 tonnes of 146 g/t Ag, 0.17 g/t Au, and 0.23% Pb with metallurgical recoveries of 82.07%, 43.64%, and 80.78% respectively, to produce 258K Oz Ag, 160 Oz Au, and 273K Lb Pb (283K Oz AgEq).

ON FINANCING

  • Silver Spruce Resources Inc., announced the first closing of a private placement for gross proceed of up to $117,250. The company plans to complete second a final closing of the private placement by August 18, 2022 (El Mezquite project, Sonora).
  • Bear Creek Mining Corporation entered into a USD $5M loan facility with Auramet (Mercedes mine, Sonora). Part of the proceeds will be used to fast-track production improvements at its recently acquired Mercedes mine in Sonora.
  • Elemental Royalties Corp., announced that its 1% Net Smelting Return (NSR) royalty on the Mercedes mine, Sonora is now payable. Elemental acquired a 1% NSR royalty on the Mercedes gold-silver mine in July 2018, payable from the earlier of either a production threshold or July 28, 2022.

ON RESOURCES AND DEVELOPMENT

  • Osisko Development Corp., filed a technical report to present and support the results of the Mineral Resource Estimate at June 30, 2022 for its San Antonio Gold project, Sonora. The company reported indicated resources of 14.9M tonnes with grades of 1.2 g/t Au and 3 g/t Ag for 576K Oz Au and 1.37M Oz Ag contained, and inferred resources of 16.6M Oz Au with grades of 1.02 g/t Au and 3 g/t Ag for 544K Oz Au and 1.76M Oz Ag contained.
  • Southern Silver Exploration Corp., released results from the ongoing drilling program at its Cerro Las Minitas project, Durango. Drilling highlights include hole 21CLM-191 with 123 g/t Ag, 0.8% Cu, 0.4% Pb, and 0.6% Zn (251 g/t AgEq or 6.4% ZnEq) over a true width (TW) of 4.7m, including 848 g/t Ag, 5.6% Cu, 0.7% Pb, and 2.6% Zn (1,596 g/t AgEq or 40.5% Zn Eq) over a TW of 0.4m, and 77 g/t Ag, 4.4% Cu, 0.2% Pb, and 0.9% Zn (617 g/t AgEq or 15.6% Zn Eq) over a TW of 2.6m, including 165 g/t Ag, 0.1 g/t Au, 11.5% Cu, 0.1% Pb, and 0.4% Zn (1,463 g/t AgEq or 37.1% Zn Eq) over a TW of 1m; hole 22CLM-188 with 307 g/t Ag, 1 g/t Au, 0.5% Cu, 0.2% Pb, and 0.7% Zn (481 g/t AgEq or 12.2% Zn Eq) over a TW of 0.3m, and 128 g/t Ag, 0.8% Pb, and 1,1% Zn (202 g/t AgEq or 5.1% Zn Eq) over a TW of 12.7m, including 352 g/t Ag, 0.1% Cu, 2.4% Pb, and 1.6% Zn (500 g/t AgEq or 12.7% Zn Eq) over a TW of 4.8m, including 675 g/t Ag, 0.3% Cu, 5.5% Pb, and 3.4% Zn (1,008 g/t AgEq or 25.6% Zn Eq) over a TW of 1.3m; and hole 22CLM-187 with 98 g/t Ag, 0.1% Cu, 1% Pb, and 0.1% Zn (145 g/t AgEq or 3.7% Zn Eq) over a TW of 1.7m, plus 162 g/t Ag, 0.6 g/t Au, 0.3% Cu, 1.5% Pb, and 0.6% Zn (314 g/t AgEq or 8% Zn Eq) over a TW of 1.9m, including 499 g/t Ag, 0.1 g/t Au, 0.4% Cu, 4.6% Pb, and 1.5% Zn (759 g/t AgEq or 19.2% Zn Eq) over a TW of 0.6m, and 9 g/t Ag, 1.2 g/t Au, 0.2% Cu, 0.1% Zn (134 g/t AgEq or 3.4% Zn Eq) over a TW of 2m. These results continue to extend the silver-polymetallic mineralization laterally to the east and west in the North Felsite target on the Cerro Las Minitas project, Durango.
  • Vizsla Silver Corp., released results from nine holes targeting the southern extension of the Napoleon Vein at its Panuco project, Sinaloa. Drilling highlights include hole NP-22-300 with 913 g/t Ag, 5.28 g/t Au, 0.1% Pb, and 0.2% Zn (1,241 g/t AgEq) over a true width (TW) of 3.90m, including 1,385 g/t Ag, 6.62 g/t Au, 0.1% Pb, and 0.1% Zn (1,772 g/t AgEq) over a TW of 0.83m, including 1,750 g/t Ag, 13.75 g/t Au, 0.2% Pb, and 0.5% Zn (2,641 g/t AgEq) over a TW of 0.5m; hole NP-22-295 with 682 g/t Ag, 3.62 g/t Au, 0.7% Pb, and 2.2% Zn (990 g/t AgEq) over a TW of 1.7m, and 493 g/t Ag, 3.15 g/t Au, 0.8% Pb, and 3% Zn (813 g/t AgEq) over a TW of 1.41m; and hole NP-22-291 with 283 g/t Ag, 1.08 g/t Au, 0.6% Pb, and 4.5% Zn (517 g/t AgEq) over a TW of 1.48m, and 484 g/t Ag, 0.46 g/t Au, 0.1% Pb, and 0.9% Zn (518 g/t AgEq) over a TW of 1.18m. These results demonstrate the continuity of high-grade silver and gold mineralization along the southern extent of the main Napoleon Vein.
  • Mithril Resources Ltd., released results from its ongoing drill program on the western end of its El Refugio resource area at its Copalquin project, Durango. Significant drill intercepts were encountered in holes CDH-140 with 15.73 g/t Au and 474 g/t Ag (22.5 g/t AuEq) over 5.83m, including 45.5 g/t Au and 1,387 g/t Ag (66.73 g/t AuEq) over 1.81m; and hole CDH-141 with 1.35 g/t Au and 48 g/t Ag (2.03 g/t AuEq) over 4m, and 2.54 g/t Au and 24 g/t Ag (2.88 g/t AuEq) over 5.49m, and 1.67 g/t Au and 55 g/t Ag (2.45 g/t AuEq) over 1.8m.

ON DEALS AND CORPORATE ISSUES

  • Monumental Minerals Corp., announced that its common shares are now eligible for electronic clearing and settlement in the United States through the Depository Trust Company (DTC). The Company’s shares will now trade under the symbol “MNMRF” (Jemi project, Coahuila).
  • Orogen Royalties Inc., acquired royalties in the Sarape property in Sonora by paying USD $120K to Advance Lithium Corp. Orogen will retain 1.5% net smelter return royalty on the Sarape project.
  • Aura Minerals Inc., announced the appointment of a new member to its Board of Directors (Aranzazu mine, Zacatecas).
  • Aztec Minerals Corp., became 100% owner of the Cervantes project in Sonora by acquiring Kootenay Silver Corp´s 35% interest in the JV company that holds the Cervantes property. As consideration for the acquisition, Aztec will issue to Kootenay 10M common shares in the capital of Aztec, at a price of CAD $0.25 per share, and Kootenay  will retain a 0.5% Net Smelter Return Royalty.
  • Azure Minerals Limited completed the sale of its Mexican assets to Bendito Resources Inc, for a combination of cash and shares valued at A $20M.
  • Sierra Madre Gold and Silver Ltd., announced the appointment of its new CFO (La Tigra project, Nayarit).
  • Prismo Metals Inc., announced that its common shares have been approved for listing on the OTCQB. It will begin trading under the symbol PMOMF (Palos Verdes project, Sinaloa).
  • Colibri Resource Corporation announced that it has filed audited financial statements for the period ending December 31, 2021; unaudited quarterly financial statements for the three months period ending March 31, 2022;  management discussions and analyses for each period; , and officer certifications on the System for Electronic Document Analysis and Retrieval (SEDAR). Although the required filings have been made, trading in the Company’s common shares will not resume until: a cease trade order originally issued on May 11, 2022 by the Financial and Consumer Services Commission of News Brunswick has been revoked; and the TSX Venture Exchange has approved the reinstatement of the trading of the Company’s common shares (Evelyn project, Sonora).
  • Excellon Resources Inc., announced the appointment of its Chief Legal Officer & VP, Corporate Affairs (La Platosa mine, Durango).

ON SOCIAL RESPONSIBILITY

  • Fresnillo plc donated two garbage trucks with a capacity of 15 tonnes to the Municipality of Fresnillo, Zacatecas. Each donated truck can collect waste from 15,000 families daily. With this delivery, Fresnillo plc promotes and endorses its commitment to the people of Fresnillo.
  • Grupo Mexico announced an investment of MXP $38,000M (about USD $1.9 B) to expand its mining operations that will generate 11,000 jobs in the next five years in Sonora state. The governor of the state, Alfonso Durazo Montaño, and the executive vice president of Grupo México, Xavier García de Quevedo, announced this series of projects that are currently 47% complete and will be extended until 2027. García de Quevedo explained that the more than 11,000 jobs will be divided into 5,700 direct and indirect jobs in the construction stage and 5,660 permanent jobs in the operation. On the other hand, Irma Potes González, director of Community Development of Grupo México, explained that repair and rehabilitation works are currently being carried out on the drinking water distribution system,  in the municipalities of Nacozari and Cananea to improve the supply of water to the population.

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 quartz hydrothermal breccia from an intermediate sulphidation epithermal vein system in Chihuahua, Mexico.  Photo by Miguel A Heredia.

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

Hydrothermal breccia cemented by Manganese Oxides

By Miguel A Heredia

During the 28th week of the year (July 11th to July 17th, 2022), at least 21 press releases were announced by companies working in Mexico, with six communicating production and financial results, five disclosing deals and corporate issues, five reporting resources and developments of their properties, two announcing financing issues, one informing on exploration results, one commenting on Mexican issues, and one discussing social issues. ON MEXICO ISSUES, Mammoth Resources, Discovery Silver, GR Silver, and Oroco reported the best drilling intercepts in Mexico on the second week of July, 2022.  ON EXPLORATION, In Chihuahua, Mammoth released results from 4 holes drilled at its Tenoriba project.  ON MINING, GoGold reported Q2, 2022 production results from its Parral Tailings project, Chihuahua. Fortuna Silver announced Q2, 2022 production results from its San Jose mine, Oaxaca. Gatos Silver reported Q2, 2022 production and financial results from its Cerro Los Gatos mine in Chihuahua. Orla announced Q2, 2022 production and financial results from its Camino Rojo project, Zacatecas. Torex Gold reported Q2, 2022 production results from its El Limon-Guajes mine in Guerrero. Golden announced Q2, 2022 production results from its Rodeo mine in Durango.  ON FINANCING, Monarca announced that it will be extending the exercise period of a total of 55,900,000 share purchase warrants, all of which are exercisable at $0.075 per share (San Jose project, Chihuahua). Excellon announced that the New York Stock Exchange (NYSE) accepted its plan to regain compliance with the continued listing standards of the NYSE American Company Guide (La Platosa mine, Durango). ON RESOURCES AND DEVELOPMENT, GR Silver released first assay results from the 2022 resource expansion drill program being conducted at its San Marcial project, Sinaloa. Discovery Silver reported results of 22 holes from its phase 2 drill program from its Cordero project in Chihuahua. Bear Creek provided and operational and exploration update on its Mercedes mine, Sonora. Oroco released results from 14 holes drilled at its Santo Tomas project in Sinaloa.  Tarachi provided an update on the progress of its Magistral Mil and Tailings project in Durango. ON DEALS AND CORPORATE ISSUES, Silverton announced the appointment of its new CFO, and the resignation and new replacement of its Director (Pluton project, Durango). Excellon announced the appointment of its new President and CEO (La Platosa mine, Durango).  Fresnillo plc and Radius signed an exclusivity agreement on Plata Verde project, Chihuahua to earn a 70% interest in the project. Sierra Madre reported results from its annual general meeting of shareholders (La Tigra project, Nayarit). SilverCrest announced the appointment of a new member to its Board of Directors (Las Chispas project, Sonora).  ON SOCIAL RESPONSIBILITY, Aura released its 2021 sustainability report (Aranzazu mine, Zacatecas).

ON MEXICO ISSUE

  • Mammoth Resources, Discovery Silver, GR Silver, and Oroco reported the best drilling intercepts in Mexico on the second week of July, 2022. Details are shown in the table below:

ON EXPLORATION

  • Mammoth Resources Corp., provided results from 4 drill holes completed, for a total of 320.7m, at its Tenoriba project in Chihuahua. The most significant drill intercept were encountered in hole TEN-21-14 drilled at the Moreno Zone with 0.32 g/t Au and 6 g/t Ag (0.40 g/t AuEq) over 9m; hole TEN-21-15 drilled at Carneritos Zone with 0.52 g/t Au and 8 g/t Ag (0.63 g/t AuEq) over 30m, including 0.85 g/t Au and 12 g/t Ag (1.02 g/t AuEq) over 6m, including 0.86 g/t Au and 26 g/t Ag (1.21 g/t AuEq) over 3m; hole TEN 21-16 drilled at Carneritos Zone with 0.6 g/t Au and 1 g/t Ag (0.61 g/t AuEq) over 12m, and 0.44 g/t Au and 2 g/t Ag (0.47 g/t AuEq) over 85.7m, including 0.92 g/t Au and 3 g/t Ag (0.97 g/t AuEq) over 6m; and hole TEN-21-17 drilled at Carneritos Zone with 0.6 g/t Au and 3 g/t Ag (0.64 g/t AuEq) over 33m, including 1.06 g/t Au and 1 g/t Ag (1.07 g/t AuEq) over 9m. To date, the company has drilled 2,234.6m in 17 holes.

ON MINING

  • GoGold Resources Inc., reported Q2, 2022 production results from its Parral Tailings project, Chihuahua. The company produced 315,632 Oz Ag, 3,170 Oz Au, and 268,800 Lb Cu (575,301 Oz AgEq).
  • Fortuna Silver Mines Inc., announced Q2, 2022 production results from its San Jose mine, Oaxaca. The company milled 251,945 tonnes of 187 g/t Ag and 1.13 g/t Au, with metallurgical recoveries of 91-33% and 90.5% respectively, to produce 1.38M Oz Ag and 8.3K Oz Au.
  • Gatos Silver Inc., reported Q2, 2022 production and financial results from its Cerro Los Gatos mine in Chihuahua. The company milled 211,350 tonnes of 374 g/t Ag, 0.38 g/t Au, 2.8% Pb, and 5% Zn, with metallurgical recoveries of 90.4%, 48.9%, 90.5%, and 66.4% respectively, to produce 2.3M Oz Ag, 1.27K Oz Au, 11.8M Lb Pb, and 15.6M Lb Zn. Gatos Silver paid its first dividend of $20M to its partners in April 2022, and expects to receive another dividend in Q3, 2022. It also reported a cash balance of $450M as of June 30, 2022.
  • Orla Mining Ltd., announced Q2, 2022 production and financial results from its Camino Rojo project, Zacatecas. The company mined 2,038,831 tonnes of 0.71 g/t Au consisting of 1,657,327 tonnes of ore processed with an average grade of 0.8 g/t Au and 381, 504 tonnes of low grade ore-stockpiled with an average grade of 0.33 g/t Au. In Q2, 2022 Orla produced 25,672 Oz Au, and provided gold production guidance for the full year 2022 of 90K-100K Oz Au. Orla reported a cash balance of $66.7M at June, 2022.
  • Torex Gold Resources Inc., reported Q2, 2022 production results from its El Limon-Guajes mine in Guerrero. The company produced 123,180 Oz Au and sold 123,360 Oz Au, and is firmly on track to deliver on full year production guidance of 430K – 470K Oz Au.
  • Golden Minerals Company announced Q2, 2022 production results from its Rodeo mine in Durango. The company mined 213,925 tonnes of 2.6 g/t Au and 10 g/t Ag with metallurgical recoveries of 75.1% and 82.3% respectively to produce 3,004 Oz Au and 12,678 Oz Ag (3,158 Oz AuEq). Golden sold in doré 3,060 Oz Au and 13,180 Oz Ag (3,219 Oz AuEq).

ON FINANCING

  • Monarca Minerals Inc., announced that it will be extending the exercise period of a total of 55,900,000 share purchase warrants, all of which are exercisable at $0.075 per share. The Warrants were issued pursuant to a private placement which closed on August 20, 2020. The Company proposes to extend the expiry by one year, and accordingly, the new expiry date for the Warrants will be August 20, 2023 (San Jose project, Chihuahua).
  • Excellon Resources Inc., announced that the New York Stock Exchange (NYSE) accepted its plan to regain compliance with the continued listing standards of the NYSE American Company Guide related to insufficient stockholders’ equity. Excellon submitted its plan on May 31, 2022, and has been granted a plan period through October 30, 2023 (La Platosa mine, Durango).

ON RESOURCES AND DEVELOPMENT

  • GR Silver Mining Ltd., released first assay results from the 2022 resource expansion drill program being conducted at its San Marcial project, Sinaloa. Drilling highlights include hole SMSP22-003 with 547 g/t Ag, 0.01 g/t Au, 0.2% Pb, and 0.6% Zn over a true width (TW) of 15.2m, including 1,179 g/t Ag, 0.01 g/t Au, 0.2% Pb, and 0.5% Zn over a TW of 2m; hole SMSP22-012 with 324 g/t Ag, 0.1% Pb, and 0.2% Zn over a TW of 14.9m, including 1,541 g/t Ag, 0.1% Pb, and 0.3% Zn over a TW of 1m; hole SMSP22-02 with 128 g/t Ag, 0.01 g/t Au, 0.2% Pb, and 0.5% Zn over a TW of 14m; and hole SMSP22-10 with 193 g/t Ag, 0.2% Pb, and 0.4% Zn over a TW of 7.1m, including 921 g/t Ag, 0.1% Pb, and 0.3% Zn over a TW of 2m.
  • Discovery Silver Corp., reported results of 22 holes from its phase 2 drill program from its Cordero project in Chihuahua. Drilling highlights include holes C22-610 with 115 g/t Ag, 0.05 g/t Au, 3.7% Pb, and 4.1% Zn (388 g/t AgEq) over 32.6m, including 187 g/t Ag, 0.05 g/t Au, 6.5% Pb, and 7.2% Zn (660 g/t AgEq) over 17.8m, and 55 g/t Ag, 0.05 g/t Au, 0.9% Pb, and 1.6% Zn (147 g/t AgEq) over 15.7m; hole C22-605 with 89 g/t Ag, 0.13 g/t Au, 1.8% Pb, and 3% Zn (265 g/t AgEq) over 38.6m, including 137 g/t Ag, 0.2 g/t Au, 2.8% Pb, and 3.8% Zn (380 g/t AgEq) over 22.3m; hole C22-596 with 49 g/t Ag, 0.06 g/t Au, 1.2% Pb, and 2.5% Zn (184 g/t AgEq) over 60.3m, and 21 g/t Ag, 0.01 g/t Au, 0.1% Pb, and 1.2% Zn (70 g/t AgEq) over 36.4m; and hole C22-609 with 104 g/t Ag, 0.14 g/t Au, 3.2% Pb, and 4.4% Zn (375 g/t AgEq) over 4.9m, and 35 g/t Ag, 0.01 g/t Au, 0.9% Pb, and 1.4% Zn (115 g/t AgEq) over 17.7m, and 64 g/t Ag, 0.06 g/t Au, 1% Pb, and 1.4% Zn (150 g/t AgEq) over 33.1m. “The current set of results is focused on expansion of the open pit and the resource in the northeast of the deposit and will be incorporated in a resource update and Pre-Feasibility Study scheduled for completion in the fourth quarter of this year”.
  • Bear Creek Mining Corporation provided and operational and exploration update on its Mercedes mine, Sonora since its acquisition on last April, 2022.  The company has implemented operating strategies to improve Mercedes’ annual gold production and to initiate an aggressive exploration program. Bear Creek increased development work which resulted in having 15 working faces available, doubling the historical average of work areas. On exploration, the company is conducting Greenfield exploration at San Martin, Diluvio Scout, Margarita, and Neo Zones, where highly prospective structure related to Mercedes mine extend beneath post mineral cover. Drilling highlights include hole L22-652D drilled at Margarita Zone with 6.7 g/t Au and 68 g/t Ag over a true width (TW) of 2.2m; hole L22-649D drilled at Margarita Zone with 4.34 g/t Au and 53 g/t Ag over a TW of 1m; hole L22-655D drilled a Neo Zone with 2.44 g/t Au and 2 g/t Ag over a TW of 1.2m; and hole L22-659D drilled at Neo Zone with 4.43 g/t Au and 2 g/t Ag over a TW of 1.3m, and 2.98 g/t Au and 11 g/t Ag over a TW of 3.3m. To date, a total of 5,166m of RC / diamond have been drilled since the acquisition but additional 3,312m of greenfield exploration drill are planned for the remainder of 2022.
  • Oroco Resource Corporation released results from 14 holes (10,293m) drilled on the North Zone at its Santo Tomas project in Sinaloa. A total of 20 holes have been completed in the North Zone to date. Significant drill intercepts were encountered in hole N001 with 0.39% Cu, 0.01% Mo, 0.045 g/t Au and 2 g/t Ag (0.46% CuEq) over 255m; hole N002 with 0.38% Cu, 0.012% Mo, 0.025 g/t Au and 3 g/t Ag (0.44% CuEq) over 280.1m; hole N003 with 0.39% Cu, 0.014% Mo, 0.019 g/t Au, and 3 g/t Ag (0.45% CuEq) over 207.7m; hole N004 with 0.38% Cu, 0.012% Mo, 0.017 g/t Au, and 2 g/t Ag (0.44% CuEq) over 63.7m; hole N006 with 0.39% Cu, 0.004% Mo, 0.051 g/t Au, and 2 g/t Ag (0.44% CuEq) over 188.5m; hole N007 with 0.32% Cu, 0.005% Mo, 0.029 g/t Au, and 3 g/t Ag (0.37% CuEq) over 191.3m, and 0.32% Cu, 0.012% Mo, 0.018 g/t Au, and 3 g/t Ag (0.38% CuEq) over 109.9m; hole N008 with 0.38% Cu, 0.01% Mo, 0.038 g/t Au, and 3 g/t Ag (0.45% CuEq) over 328.3m; hole N009 with 0.76% Cu, 0.011% Mo, 0.021 g/t Au, and 5 g/t Ag (0.82% CuEq) over 32m, and 0.31% Cu, 0.027% Mo, 0.013 g/t Au, and 2 g/t Ag (0.42% CuEq) over 21.9m, and 0.29% Cu, 0.014% Mo, 0.011 g/t Au, and 2 g/t Ag (0.35% CuEq) over 123.6m, and 0.45% Cu, 0.016% Mo, 0.022 g/t Au, and 3 g/t Ag (0.53% CuEq) over 15.2m; hole  N010 with 0.36% Cu, 0.011% Mo, 0.029 g/t Au, and 2 g/t Ag (0.42% CuEq) over 311m; hole N011 with 0.39% Cu, 0.007% Mo, 0.039 g/t Au, and 3 g/t Ag (0.45% CuEq) over 230.8m; hole N012 with 0.35% Cu, 0.015% Mo, 0.025 g/t Au, and 3 g/t Ag (0.42% CuEq) over 296.9m; and hole N013 with 0.27% Cu, 0.009% Mo, 0.023 g/t Au, and 2 g/t Ag (0.32% CuEq) over 128m, and 0.36% Cu, 0.02% Mo, 0.018 g/t Au, and 2 g/t Ag (0.45% CuEq) over 95m, and 0.24% Cu, 0.009% Mo, 0.014 g/t Au, and 2 g/t Ag (0.29% CuEq) over 126m. The 2021-2022 drill program has now spanned 1,100m of strike length along the core of the North Zone mineral deposit at Santo Tomas project.
  • Tarachi Gold Corp., provided an update on the progress of its Magistral Mill and Tailings project in Durango. The company reported that the final stages of the metallurgical test work are nearing completion and results are expected to arrive within the next few weeks. It also commented that the design and engineering activities will commence upon receipt of the final metallurgical work. Tarachi´s Board and management are confident that its Magistral Mill and Tailings project will be a high-return, high-margin Au producer with the following metrics from the USD $1600-base price Preliminary Economic Assessment (PEA): All in Sustaining Cost (AISC) of USD $705/ Oz Au; After-tax IRR of 85%; and After-tax payback period of 12 months.

ON DEALS AND CORPORATE ISSUES

  • Silverton Metals Corp., announced the appointment of its new CFO, and the resignation and new replacement of its Director (Pluton project, Durango). 
  • Excellon Resources Inc., announced the appointment of its new President and CEO, effective July 28, 2022 (La Platosa mine, Durango).
  • Fresnillo plc, through its subsidiary Minera san Julian, and Radius Gold Inc., through its subsidiary Geonorte signed an exclusivity agreement to earn a 70% interest in Plata Verde project, Chihuahua. Fresnillo has to spend over a four year period a minimum cumulative amount of USD $5M on exploration activities at the Plata Verde project and make option payments to Radius totalling USD $3.117M, which include USD $1.117M to cover underlying property agreements to have the right to earn a 70% interest in the property. If the option is exercised, a new company (NewCo) would be set up to own the Plata Verde Project; NewCo would be owned 70% by Minera San Julian and 30% by Geonorte. Should either Party’s interest fall below 10% interest in NewCo that interest would convert to a 2% NSR.
  • Sierra Madre Gold and Silver Ltd., reported results from its annual general meeting of shareholders (La Tigra project, Nayarit).
  • SilverCrest Metals Inc., announced the appointment of a new member to its Board of Directors effective immediately (Las Chispas project, Sonora).

ON SOCIAL RESPONSIBILITY

  • Aura Minerals Inc., released its 2021 sustainability report. This report underscored the Company’s commitment to being an innovative, safe, responsible, and sustainable mining Company, and highlights initiatives planned across eight Environmental, Social, and Governance (ESG) Pillars (Aranzazu mine, Zacatecas).

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 quartz hydrothermal breccia cemented by Mn Ox from an epithermal vein system in Durango, Mexico.  Photo by Miguel A Heredia.

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

Banded chalcedonic quartz vein

By Miguel A Heredia

During the 26th week of the year (June 27th to July 3rd, 2022), at least 23 press releases were announced by companies working in Mexico, and 1 news were published by the media, with eleven disclosing deals and corporate issues, five reporting resources and developments of their properties, four announcing financing issues, two informing on exploration results, one commenting on Mexican issues, and one communicating production and financial results. ON MEXICO ISSUES, Mammoth Resources, Prime Mining, and Capitan Mining reported the best drilling intercepts in Mexico on the fifth week of June, 2022. ON EXPLORATION, In Sonora, Silver Spruce submitted an exploration plan for 500-1000m of trenching and for 1,000-2,000m of initial RC drilling for its Jackie project. In Chihuahua, Mammoth provided results from 3 drill holes completed at its Tenoriba project. ON MINING, Altaley reported production and financial results from its Tahuehueto project, Durango. ON FINANCING, Infinitum Copper announced a non-brokered private placement to raise up to CAD $1M (Adelita project, Sonora). Sierra Madre entered into an agreement in connection with a private placement for gross proceeds of up to $10M (La Guitarra project, State of Mexico). Prismo closed its previously announced financing for gross proceeds of $682,125 (Palos Verdes project, Sinaloa). Tocvan closed a private placement for gross proceeds of CAD $5.125M (El Pilar project, Sonora). ON RESOURCES AND DEVELOPMENT, Altaley provided an update on the commissioning, pre-production, and construction progress at its Tahuehueto project in Durango. Capitan Mining reported results from 3 RC holes drilled at its Cruz de Plata project in Durango. Prime Mining reported results from its expanded Phase 2 step-out and infill drilling at its Los Reyes project, Sinaloa. Regency Silver commenced a 2,000m drill program at its flagship Dios Padre Silver project. Osisko Development announced a Mineral Resource Estimate for its San Antonio Gold project in Sonora.   ON DEALS AND CORPORATE ISSUES, Discovery Silver reported results from its annual general meeting of shareholders (Cordero project, Chihuahua). Gatos Silver announced the appointments of its new CFO and VP Corporate Development and Business Improvement effective July 16, 2022 (Cerro Los Gatos, Chihuahua). Prismo announced the appointment of a new member to its Board of Directors (Palos Verdes project, Sinaloa). Silver Spruce informed that it has fulfilled the terms of the earn-in agreement with Colibri, earned its 50% interest and signed a JV agreement to move forward with additional exploration at its Jackie project, Sonora.  Almaden reported results from its annual general meeting of shareholders (Ixtaca project. Puebla). Fortuna Silver announced the appointment of a new member to its Board of Directors and reports results from its annual general meeting of shareholders (San Jose mine, Oaxaca). Fortune Bay begun to trade on the OTCQX Best Market under the symbol FTBYF (Ixhuatán project, Chiapas). Magna announced results from its annual general meeting of shareholders (San Francisco mine, Sonora).  Guanajuato Silver signed a binding definitive agreement with Great Panther to acquire all of the Great panther Mexican assets. Americas Gold announced the appointment of a new member to its Board of Directors and reported results from its annual general meeting of shareholders (Cosala mine, Sinaloa). ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUE

  • Mammoth Resources Corp., Prime Mining Corp., and Capitan Mining Inc., reported the best drilling intercepts in Mexico on the fifth week of June, 2022. Details are shown in the table below:

ON EXPLORATION

  • Silver Spruce Resources Inc., submitted an exploration plan for 500-1000m of trenching and for 1,000-2,000m of initial RC drilling to evaluate the principal targets located near the center of the concession at its Jackie project in Sonora. The initial permit will include 48 trench-track location and 36 drill pads.
  • Mammoth Resources Corp., provided results from 3 drill holes completed, for a total of 378.65m, at its Tenoriba project in Chihuahua. The most significant drill intercept was encountered in hole TEN-21-12 drilled at the Carneritos Zone with 0.45 g/t Au and 5 g/t Ag (0.51 g/t AuEq) over 46.5m. These two drill holes (Carneritos and Moreno) are separated one from the other by over 2.5km. The company also reported an additional interval of the hole TEN-21-08 collared at the Moreno Zone which returned 0.98 g/t Au, and 15 g/t Ag (1.18 g/t AuEq) over 37.5m, including 1.13 g/t Au, 21 g/t Ag, and 0.55% Cu (2.34 g/t AuEq) over 18m, plus 0.08 g/t Au, 0.4 g/t Ag, and 0.45% Cu (0.65 g/t AuEq) over 12m. To date, the company has drilled 1,913.9m in 13 holes.

ON MINING

  • Altaley Mining Corporation, reported that to date it has produced approximately 260 tonnes of bulk concentrate at its Tahuehueto mine in Durango. Two shipments of approximately 30 tonnes each have been shipped to Trafigura for sale. Revenue received from the first shipment was approximately USD $42K paid for gold, silver, and lead. Another 70 tons of concentrate is in the process of being shipped from Tahuehueto to Tepehuanes subsequently to be trucked and sold to Trafigura in the coming days. The company estimates that there are approximately another 150 tonnes of concentrate available, drying on the mill patio and within the thickeners available to be filtered for drying on the patios. 

ON FINANCING

  • Infinitum Copper Corp., announced a non-brokered private placement to raise up to CAD $1M. The financing will consist of up to 5K units at a price of CAD $0.20 per unit for gross proceeds of up to CAD $1M. Part of the gross proceeds will be used to fund exploration at its Adelita project in Sonora.
  • Sierra Madre Gold and Silver Ltd., entered into an agreement in connection with a private placement for gross proceeds of up to $10M. The Company intends to use the net proceeds of the Offering for the development of the La Guitarra Property, advancement of engineering studies, and general working capital purposes.
  • Prismo Metals Inc., closed its previously announced financing for gross proceeds of $682,125. The proceeds will be primarily used to drill a minimum of 2,000m of core at its Palos Verdes project in Sinaloa.
  • Tocvan Ventures Corp., closed a private placement for gross proceeds of CAD $5.125M. The gross proceeds will be used to advance El Pilar and Picachos project in Sonora, and for general working capital purposes.

ON RESOURCES AND DEVELOPMENT

  • Altaley Mining Corporation provided an update on the commissioning, pre-production, and construction progress at its Tahuehueto project in Durango. The operations team has been resolving various start-up issues related to the water supply pipeline and mill commissioning. Processing has been stabilized with the mill achieving ore throughput up to 350 tonnes per day (tpd). Mill throughput is estimated to remain at current levels over the next two weeks. The tailings storage facility is in the final stages of construction and expected to be ready to receive dry stack tailings within 45 days. The Tahuehueto Laboratory is essentially ready to be operational and technicians are calibrating ICP and ancillary equipment expected to be fully operational over the next few days. Installation of the second 500 tpd ball mill is scheduled over the next several months and the Company anticipates the project will be able to commission this mill during Q4 2022 and ramp up production towards the mine’s designed capacity of 1,000 tpd near the end of 2022.
  • Capitan Mining Inc., reported results from 3 RC holes drilled at the Jesus Maria Zone within its Cruz de Plata project in Durango. Drilling highlights include hole 22-JMRC-12 with 100 g/t Ag, 0.25 g/t Au, 0.2% Pb, and 0.4% Zn (144 g/t AgEq) over 21.3m, including 383 g/t Ag, 0.58 g/t Au, 0.9% Pb, and 0.8% Zn (489 g/t AgEq) over 1.5m, including 239 g/t Ag, 0.33 g/t Au, 0.9% Pb, and 0.9% Zn (328 g/t AgEq) over 1.5m, plus 26 g/t Ag, 0.14 g/t Au, 0.4% Pb, and 0.7% Zn (76 g/t AgEq) over 10.7m, including 42 g/t Ag, 0.16 g/t Au, 0.9% Pb, and 1.7% Zn (147 g/t AgEq) over 3m; and hole 21-JMRC-07 with 57 g/t Ag, 0.1 g/t Au, 0.1% Pb, and 0.2% Zn (77 g/t AgEq) over 22.9m, including 96 g/t Ag, 0.04 g/t Au, 0.05% Pb, and 0.06% Zn (103 g/t AgEq) over 1.5m, including 342 g/t Ag, 0.39 g/t Au, 0.6% Pb, and 0.9% Zn (428 g/t AgEq) over 1.5m. With these results, mineralization has been confirmed over 800m of strike length and remains open at depth. Assays are still pending for 9 RC holes completed at the Jesus Maria Zone.
  • Prime Mining Corp., reported results from its expanded Phase 2 step-out and infill drilling on the Tahonitas Zone at its Los Reyes project, Sinaloa. Now, this phase is planned to 70,000m. Drilling highlights include hole 22TA-18 with 6.08 g/t Au and 103 g/t Ag over a true width (TW) of 2.9m, including 13.5 g/t Au and 127 g/t Ag over a TW of 1.1m; hole 22TA-23 with 3.12 g/t Au and 24 g/t Ag over a TW of 3.1m, including 7.67 g/t Au and 34 g/t Ag over a TW of 1.4m; hole 22TA-29 with 1.37 g/t Au and 11 g/t Ag over a TW of 6.7m; hole 22TA-17 with 0.86 g/t Au and 51 g/t Ag over a TW of 9.5m, including 4.36 g/t Au and 228 g/t Ag over a TW of 1.1m; hole 22TA-27 with 0.92 g/t Au and 104 g/t Ag over a TW of 2,2m, including 1.97 g/t Au and 244 g/t Ag over a TW of 1.3m; and hole 22TA-31 with 0.99 g/t Au and 41 g/t Ag over a TW of 2.2m, including 2.78 g/t Au and 38 g/t Ag over a TW of 0.8m, plus 1.59 g/t Au and 2 g/t Ag over a TW of 0.8m. To date the company has drilled over 81,000m and completed 310 holes at Los Reyes project. The Phase 2 has now completed 54,466m in 188 holes.
  • Regency Silver Corp., commenced a 2,000m drill program at its flagship Dios Padre Silver project in Sonora. The 2,000 metre drill program is designed to test a large IP anomaly only 550 metres to the north of the existing Dios Padre historical workings to determine whether it represents a significant continuation of the mineralization at Dios Padre.
  • Osisko Development Corp., announced a Mineral Resource Estimate for its San Antonio Gold project in Sonora and provided an operation update. Osisko reported Indicated Resources of 14.9M tonnes with grades of 1.2 g/t Au and 3 g/t Ag for a total of 576K Oz Au and 1.37M Oz Ag contained, and Inferred Resources of 16.6M tonnes with grades of 1 g/t Au and 3 g/t Ag for a total of 544K Oz Au and 1.76M Oz Ag contained. The Mineral Resource Estimate encompasses five deposits: Sapuchi, Golfo de Oro, California, Calvario and High Life over approximately 2.8km along strike, a maximum width of 600m to a maximum depth of 300m below surface, and is based on 84,454m of current and verified historic drilling in 579 holes, of which 27,870m of drilling in 177 holes were drilled by the Company in 2021. The company also provided an operation update and informed that since its acquisition in November 2020, it has constructed a leach pad and carbon in column plant to process stockpiled mineralized material (1.1M tonnes with an average grade of 0.57 g/t Au), and reported that currently 680K tonnes of mineralized material has been placed and processed.

ON DEALS AND CORPORATE ISSUES

  • Discovery Silver Corp., reported results from its annual general meeting of shareholders (Cordero project, Chihuahua).
  • Gatos Silver Inc., announced the appointments of its new CFO and VP Corporate Development and Business Improvement effective July 16, 2022 (Cerro Los Gatos, Chihuahua).
  • Prismo Metals Inc., announced the appointment of a new member to its Board of Directors (Palos Verdes project, Sinaloa).
  • Silver Spruce Resources Inc., informed that it has fulfilled the terms of the earn-in agreement with Colibri, earned its 50% interest and signed a JV agreement to move forward with additional exploration at its Jackie project, Sonora.
  • Almaden Minerals Ltd., reported results from its annual general meeting of shareholders. Shareholders also approved the appointment of Davidson & Company LLP as auditors of the Company for the ensuing year (Ixtaca project. Puebla).
  • Fortuna Silver Mines, Inc., announced the appointment of a new member to its Board of Directors and reports results from its annual general meeting of shareholders (San Jose mine, Oaxaca).
  • Fortune Bay Corp., begun to trade on the OTCQX Best Market under the symbol FTBYF. Bay’s common shares will continue to trade on the TSX Venture Exchange under the symbol FOR and on the Frankfurt Stock Exchange under the symbol 5QN.  (Ixhuatán project, Chiapas).
  • Magna Gold Corp., announced results from its annual general meeting of shareholders. It also informed that the company has completed the acquisition of its flagship San Francisco mine in Sonora and stated that its objective is to bring the San Francisco mine back to its most productive days and beyond. Magna also mentioned that its currents share price does not adequately or at all reflect our achievements and given the nature of current market conditions the sector has fallen out of favour.
  • Guanajuato Silver Company Ltd., signed a binding definitive agreement with Great Panther Mining Ltd., to acquire all of the Great Panther Mexican assets, including Topia mine, Durango and production facilities, The San Ignacio mine, The Guanajuato Mine Complex (it will henceforth referred as the Valenciana mine), and the Cata processing plant in Guanajuato, for a total consideration of USD $14.7M; satisfied by USD $6,7M in Guanajuato Silver shares and USD $8M in cash, plus up to USD $2M in additional payments.
  • Americas Gold and Silver Corporation announced the appointment of a new member to its Board of Directors and reported results from its annual general meeting of shareholders (Cosala mine, 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, banded chalcedonic quartz from an epithermal vein system, in a project in Durango, Mexico.  Photo by Miguel A Heredia.

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

Hydrothermal breccia cemented by MnOx.

By Miguel A Heredia

During the 24thweek of the year (June 13th to June 19th, 2022), at least 16 press releases were announced by companies working in Mexico, and 7 news were published by the media, with five informing on exploration results, four reporting resources and developments of their properties, four disclosing deals and corporate issues, four discussing social issues, three announcing financing issues, and three commenting on Mexican issues. ON MEXICO ISSUES, Arcelor Mittal announced that the strike broke out by the National Union of Mining, Metallurgical, Steel and Similar Workers of the Mexican Republic will affect the economy of Michoacan.  With the strike carried out by Napoleón Gómez Urrutia and his miners in Lazaro Cardenas, Michoacan to the company Arcelor Mittal Mexico, they managed to jump the “cap” in the payment of utilities. The first International Mining Women’s Day was commemorated. ON EXPLORATION, In Sonora, Aztec-Kootenay JV reported final results from 2021-2022 RC drilling program on its Cervantes project, Colibri announced that its Phase 1 RC drilling program has been completed at its Evelyn project, and Prismo completed a LiDAR survey at its Los Pavitos project. In Coahuila, Monumental released sampling results from its Jemi Heavy Rare Earth Elements project. In Sinaloa, Prismo informed that it plans to drill a minimum of 2,000m at its Palos Verdes project. ON FINANCING, Prismo reached an agreement to exercise a total of up to 6,821,250 outstanding founder warrants for gross proceeds of $682,125 (Palos Verdes project, Sinaloa). Radius announced that it receives the final USD $700K option cash payment from Pan American Silver in order to earn its option for 65% of the Amalia property in Chihuahua. SilverCrest reported results from its annual general meeting of shareholders (Las Chispas project, Sonora). Silver Wolf closed a non-brokered private placement for gross proceeds of $602,160 (Ana Maria project, Durango). ON RESOURCES AND DEVELOPMENT, Avino released results from Phase 2 of its 2021/2022 drilling program conducted at its Avino project, Durango. Silver Dollar reported initial results from the Phase II drilling ongoing program conducted at its La Joya project in Durango. Silver Tiger announced drilling results from the Sooy Vein at its El Tigre project, Sonora. Sonoro completed Phase IV drilling program at its Cerro Caliche project, Sonora.  ON DEALS AND CORPORATE ISSUES, Gatos silver announced the pass away of one of its Directors (Cerro Los Gatos, Chihuahua). Sierra Metals announced the appointment of a new member as Chair of its Board of Directors (Bolivar mine, Chihuahua). Silverton announced the appointment of its new CEO and Director (Peñasco Quemado project, Sonora). ON SOCIAL RESPONSIBILITY, Peñoles recognized the academic performance of sixteen young students of the Laguna del Rey Center for Technical Studies. Esperanza Silver de México, responsible for the Esperanza mining project, signed a collaboration agreement with the Zacatepec Technological Institute. Minera Cuzcatlán adopted a wastewater treatment plant in Ocotlán, Oaxaca. Industrias Peñoles announced the summer activities that will take place during June and July at the Community Center and in the Metals Museum.

ON MEXICO ISSUE

  • Arcelor Mittal announced that the strike broke out by the National Union of Mining, Metallurgical, Steel and Similar Workers of the Mexican Republic will affect the economy of Michoacan and the metallurgical sector. The strike will have an impact and serious consequences in the short, medium and long term on labor and economic stability in the Lázaro Cárdenas region, in the state of Michoacán, in the production chain and in the country´s economy.
  • With strike, Napoleón Gómez Urrutia and his miners managed to jump the “cap” in the payment of utilities. With the work stoppage carried out by mining workers from section 271 in Lázaro Cárdenas Michoacán to the company Arcelor Mittal Mexico, on June 15, they managed to eliminate the “cap” on the payment of utilities that was included with the labor reform in April of 2021. This is not the first union organization to take action to pressure the company to grant a higher amount in the payment of utilities.
  • The first International Mining Women’s Day was commemorated. This June 15 marks the first World Mining Women’s Day as an initiative of the International Organization “Women in Mining”. Engaging the Women Mining Community, the International Day of Women in Mining will showcase the experiences, hopes and aspirations about the industry, and celebrate the personal achievements of women in the industry.

ON EXPLORATION

  • Aztec Minerals Corp – Kootenay Silver Inc. JV reported final results from 2021-2022 RC drilling program on its Cervantes project in Sonora. The program comprised 5,249 meters in 26 RC drill holes, testing 4 targets (Purisima East, California, Jasper, and California North). Hole CAL-22-018 drilled at California target intersected a high pyrite zone anomalous in copper, molybdenum, gold and silver that corresponds well with the top of large, strong IP chargeability anomaly. It encountered 0.22 g/t Au over 24.32m, plus 0.27 g/t Au over 10.64m, and 0.062% Cu over 68.4m, 1 g/t Ag over 28.88m, and 122 ppm Mo over 39.52m.
  • Colibri Resource Corporation announced that its Phase 1 RC drilling program has been completed at its Evelyn project in Sonora. The Phase 1 drill program consisted of 6,547m in 45 holes. Drill results from the first 22 holes were released previously and assays are pending for the remaining 23 holes.
  • Prismo Metals Inc., recently completed a LiDAR survey conducted over almost 40 square kilometers at its Los Pavitos project in Sonora. The company expects to receive the analysis of the LiDAR results in a few weeks to aid in the delineation of important structural trends and complete the work to identify drill targets this summer.
  • Monumental Minerals Corp., released results from 21 samples collected at its Jemi Heavy Rare Earth Elements project. Seven out of 21 samples returned values greater than 0.15% total rare earth oxide (TREO), including three samples that returned values greater than 0.25% TREO, and up to 0.54% TREO. “The assay results confirm that samples with the highest rare earth element content are those rocks that are classified as peralkaline (sodium plus potassium concentrations are greater than aluminum concentrations”. In addition, a single rock grab sample collected in the eastern claim area returned values of 13.5% Zn and 6.8% Pb and is classified as carbonate replacement-style mineralization.
  • Prismo Metals Inc., informed that it plans to drill a minimum of 2,000m at its Palos Verdes project in Sinaloa to test mineralization at depth under the high-grade intercepts from previous drilling campaigns.

ON MINING

  • No relevant news.

ON FINANCING

  • Prismo Metals Inc., reached an agreement to exercise a total of up to 6,821,250 outstanding founder warrants for gross proceeds of $682,125. Gross proceeds will be primarily used to drill a minimum of 2,000m at its Palos Verdes project, Sinaloa. Prismo also expects to use some of the proceeds to finalize surface exploration work on its Los Pavitos project in Sonora.
  • Radius Gold Inc., announced that it receives the final USD $700K option cash payment from Pan American Silver Corp., in order to earn its option for 65% of the Amalia property in Chihuahua.
  • Silver Wolf Exploration Ltd., closed a non-brokered private placement for gross proceeds of $602,160. Net proceeds will be used for financing the ongoing drill program at its Ana Maria project in Durango, and for general working capital requirements.

ON RESOURCES AND DEVELOPMENT

  • Avino Silver & Gold Mines Ltd., released results from phase 2 of its 2021/2022 drilling program conducted at its Avino project, Durango. Six underground holes were completed below the current level 17 mining area to define the continuity of economic mineralization at depth in the central part of the vein. Selected high grade intercepts include hole ET-22-01 with 0.06 g/t Au, 34 g/t Ag, and 0.66% Cu (127 g/t AgEq) over a true width (TW) of 0.80m on HW BX, including 0.12 g/t Au, 199 g/t Ag, and 2.75% Cu (577 g/t AgEq) over a TW of 0.10m, and 0.14 g/t Au, 21 g/t Ag, and 0.54% Cu (104 g/t AgEq) over a TW of 23.10m on HW STW, including 0.66 g/t Au, 759 g/t Ag, and 2.90% Cu (1,202 g/t AgEq) over a TW of 0.19m, including 1.35 g/t Au, 98 g/t Ag, and 1.92% Cu (466 g/t AgEq) over a TW of 0.34m, including 0.46 g/t Au, 72 g/t Ag, and 2.42% Cu (434 g/t AgEq) over a TW of 0.29m, including 0.15 g/t Au, 77 g/t Ag, and 3.17% Cu (514 g/t AgEq) over a TW of 0.24m, and 0.20 g/t Au, 61 g/t Ag, and 0.96% Cu (206 g/t AgEq) over a TW of 41m on Avino Vein, including 0.31 g/t Au, 71 g/t Ag, and 2.42% Cu (421 g/t AgEq) over a TW of 0.56m, including 0.09 g/t Au, 482 g/t Ag, and 1.40% Cu (678 g/t AgEq) over a TW of 0.75m, including 2.05 g/t Au, 99 g/t Ag, and 4.73% Cu (901 g/t AgEq) over a TW of 0.56m, including 2.75 g/t Au, 831 g/t Ag, and 3.82% Cu (1,568 g/t AgEq) over a TW of 0.19m, including 1.39 g/t Au, 246 g/t Ag, and 2.27% Cu (664 g/t AgEq) over a TW of 0.75, including 4.37 g/t Au, 1,234 g/t Ag, and 21.90% Cu (4,527 g/t AgEq) over a TW of 0.19m; and hole ET 21-08 with 0.28 g/t Au, 11 g/t Ag, and 0.6% Cu (112 g/t AgEq) over a TW of 1.94m on HW BX and 0.53 g/t Au, 41 g/t Ag, and 1.06% Cu (226 g/t AgEq) over a TW of 30m on Avino Vein, including 5.58 g/t Au, 86 g/t Ag, and 0.56% Cu (617 g/t AgEq) over a TW of 0.65m. “The drilling results have confirmed the down dip continuity of widths and grades of the Avino vein extending significant potential to a depth of at least 290 metre down dip below current development”.
  • Silver Dollar Resources Inc., reported initial results from 4 holes of the phase II drilling ongoing program at the unexplored La Noria portion of its La Joya project in Durango. Significant intersections were encountered in hole NOR-22-013 with 90 g/t Ag, 0.41 g/t Au, 0.08% Cu, 0.4% Pb, and 1% Zn (198 g/t AgEq) over 43,12m, including 192 g/t Ag, 0.27 g/t Au, 0.06% Cu, 1% Pb, and 2.2% Zn (363 g/t AgEq) over 19.35m, including 451 g/t Ag, 0.62 g/t Au, 0.07% Cu, 2.3% Pb, and 4.6% Zn (815 g/t AgEq) over 5m; and hole NOR-22-015 with 23 g/t Ag, 0.26 g/t Au, 0.07% Cu, 0.03% Pb, and 5.6% Zn (319 g/t AgEq) over 23.2m. To date, a total of 1,899m over 10 holes have been drilled in Phase II. Assay results are pending for the remaining 6 holes.
  • Silver Tiger Metals Inc., announced drilling results from the Sooy Vein at its El Tigre project, Sonora. Highlights drill intercepts include hole ET-21-300 with 0.06 g/t Au, 239 g/t Ag, 0.3% Cu, 0.1% Pb, and 0.2% Zn (281 g/t AgEq) over 4.9m, including 0.24 g/t Au, 2,230 g/t Ag, 2.85% Cu, 0.7% Pb, and 0.8% Zn (2,565 g/t AgEq) over 0.5m; and hole ET-21-289 with 0.12 g/t Au, 901 g/t Ag, 0.61% Cu, 3.1% Pb, 7.3% Zn (1,286 g/t AgEq) over 0.6m. The company also reported that over 370m of rehabilitation in Level 7 of the historic El Tigre mine have been completed. 
  • Sonoro Gold Corp., completed Phase IV drilling program at its Cerro Caliche project, Sonora, and reported results from the final seven holes. The company completed over 7,200m in 63 holes which returned multiple higher-grade gold intercepts and demonstrated the expansion of several known mineralized gold zones within the Cerro Caliche concession.  Highlights drill intercepts include hole SCR-321 with 1.34 g/t Au and 9 g/t Ag (1.38 g/t AuEq) over 15.24m, including 3.66 g/t Au and 15 g/t Ag (3.73 g/t AuEq) over 4.57m, plus 1.1 g/t Au and 0.8 g/t Ag (1.11 g/t AuEq) over 1.52m; and hole SCR-322 with 0.78 g/t Au and 5 g/t Ag (0.81 g/t AuEq) over 18.29m, including 4.88 g/t Au and 20 g/t Ag (4.97 g/t AuEq) over 1.52m. “Drilling results from the now completed Phase IV campaign will be included in an updated resource estimation scheduled to be announced in the fall of 2022. The economic impact of the updated resource on the proposed heap leach mining operation is also to be assessed and will be contemplated in a further technical report”.

ON DEALS AND CORPORATE ISSUES

  • Gatos Silver Inc., announced the pass away of one of its independent non-executive Directors (Cerro Los Gatos, Chihuahua).
  • Sierra Metals Inc., announced the appointment of a new member as Chair of its Board of Directors (Bolivar mine, Chihuahua).
  • Silverton Metals Corp., announced the appointment of its new CEO and Director (Peñasco Quemado project, Sonora).
  • SilverCrest Metals Inc., reported results from its annual general meeting of shareholders (Las Chispas project, Sonora).

ON SOCIAL RESPONSIBILITY

  • Servicios Industriales Peñoles recognized the academic performance of sixteen young students of the Laguna del Rey Center for Technical Studies. The outstanding students are about to conclude their theoretical instruction as technical professionals, to then go on to put their knowledge into practice for an entire semester by joining the work teams of different mining units in different states of the Republic, with the possibility of in the end, they will be formally hired.
  • Esperanza Silver de México S.A. de C.V., responsible for the Esperanza mining project, signed a collaboration agreement with the Zacatepec Technological Institute, which will allow students from this important professional training institution in the state of Morelos, to carry out their professional residences at Minera Esperanza Silver.
  • Minera Cuzcatlán (Fortuna Silver Mines Inc.), adopted a wastewater treatment plant in Ocotlán, Oaxaca. The Wastewater Treatment Plant (WWTP ) located in the municipality of Ocotlán de Morelos supplies 80% of the water it uses in its processes and the rest is obtained from rainwater harvested through a canal system
  • Industrias Peñoles S.A.B. de C.V., announced the summer activities that will take place during June and July at the Community Center and in the Metals Museum. 

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 hydrothermal breccia cemented by Mn Ox in an epithermal vein system, in Durango, Mexico.  Photo by Miguel A Heredia.

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

Cu silicates (chrysocolla)

By Miguel A Heredia

During the 22ndweek of the year (May 30th to June 5th, 2022), at least 19 press releases were announced by companies working in Mexico, with seven reporting resources and developments of their properties, four disclosing deals and corporate issues, two communicating production and financial results, two announcing financing issues, two commenting on Mexican issues, and two informing on exploration results. ON MEXICO ISSUES, Advance Lithium provided an update on the recent mining law changes. Prime Mining, Vizsla Silver and Zacatecas Silver reported the best drilling intercepts in Mexico on the first week of June, 2022. ON EXPLORATION, In Sonora, Benjamin Hill reported drill results from the El Fierro Zone at its Sonora Gold project, Sonora. In Coahuila, Monumental announced plans for follow-up exploration work at its Jemi Heavy Rare Earth project.  ON MINING, Santacruz reported Q1, 2022 production results from its Zimapan mine in Hidalgo. Minera Alamos reported Q1, 2022 financial results from its Santana project, Sonora. ON FINANCING, Reyna Silver announced a brokered private placement for gross proceeds of up to CAD $3M (Guigui and Batopilas projects, Chihuahua). Alamos Gold declared a quarterly dividend of USD $0.025 per common share (Mulatos mine, Sonora). ON RESOURCES AND DEVELOPMENT, Zacatecas Silver commenced its work plans to prepare a current resource estimate at its Esperanza project, Morelos. Discovery Silver reported positive metallurgical results and provided an update on its flagship Cordero project, Chihuahua. Prime reported additional phase 2 drill results from 12 step out drill holes at the Guadalupe East deposit within its Los Reyes project in Sinaloa. Magna Gold filed an independent technical report for its Margarita project, Chihuahua. Minera Alamos provided an update on the continuing progress at its Santana project in Sonora. Vizsla reported results from eighteen new holes drilled at the southern extension of the Napoleon Vein at its flagship Panuco project, Sinaloa.  Zacatecas Silver released results from the Panuco Norte drilling program at its Zacatecas project, Zacatecas. ON DEALS AND CORPORATE ISSUES, Azure entered into a binding sale agreement to sell its subsidiary companies that own and operate its Mexican assets to Bendito Resources for a combination of cash and shares valued at A $20M. Silverton entered into a share purchase agreement with Zapata to acquire the Margaritas property in Durango. Pantera Silver announced the appointment of a new member to its Board of Directors (Nuevo Taxco project, Guerrero). ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUES

Advance Lithium Corp., provided an update on the recent mining law changes that states that all the activities related to the exploration, exploitation and profit of lithium shall be the responsibility of the yet to be formed national lithium company. Advance has identified large zones of lithium, potassium and boron mineralization at their claims which are in good standing, with work completed and all legal filings in order. It should be noted that the analysis of the company’s deposits show that the composition of the mineralization is approximately equal parts lithium and potassium. While lithium is covered by this new legislation in Mexico, potassium is not. The potential of near term production of both lithium and potassium products puts the Company in a unique position with its salars/salt lakes deposits and looks forward to discussing the lithium opportunities with the newly formed Mexican national lithium company.

  • Prime Mining, Vizsla Silver and Zacatecas Silver reported the best drilling intercepts in Mexico on the first week of June, 2022. Details are shown in the table below:

ON EXPLORATION
·         Benjamin Hill Mining Corp., reported drill results from the El Fierro Zone at its Sonora Gold project, Sonora. This drill program explored for the presence and continuity of metallic mineralization found in outcroppings at surface, in epithermal veins, skarn zones and hydrothermal breccias, as well as for possible magmatic source of mineralization as indicated by chargeability highs. Drilling highlights include hole SGB-22-23 with 0.25% Cu over 1.25m; hole SGB-22-24 with 0.67% Cu over 1.25m; hole SGB-22-26 with 0.39 g/t Au over 0.95m, plus 0.26% Cu over 1.45m; and hole SFB-22-21 with 3.54% Cu over 3m, including 10% Cu, 2.11 g/t Au and 52 g/t Ag over 0.6m.
·         Monumental Minerals Corp., announced plans for follow-up exploration work at its Jemi Heavy Rare Earth project. The follow-up work program will be divided in two phases. The first phase will consists of detailed geological mapping and collection of structural data, along with a ground radiometric survey to identify drill targets. The second phase will consists of a stream sediment geochemical survey to assess areas within and beyond the 8km2 area of highest priority.
ON MINING
·         Santacruz Silver Mining Ltd., reported Q1, 2022 production results from its Zimapan mine in Hidalgo. The company processed 191,413 tonnes to produce 901.2K Oz AgEq. It sold 872.7K Oz AgEq and reported cash and All Included Sustaining Costs (AISC) of USD $17.04 and USD $23.38 per Oz AgEq sold respectively.
·         Minera Alamos Inc., announced Q1, 2022 financial results from its Santana project, Sonora. The company reported revenues of CAD $5.16M from approximately 65% of its gold production (the remaining gold was sold post quarter end); income from operation of CAD $1.53M; a net income of CAD $1.06M; and cash and cash equivalents of CAD $8,17M.
ON FINANCING
·         Reyna Silver Corp., announced a brokered private placement with Red Cloud Securities Inc. (the “Agent”), for gross proceeds of up to CAD $3M. The Agent will have an option, exercisable in full or in part up to 48 hours prior to the closing of the Offering, to sell up to an additional 2,777,778 Units at the Offering Price for additional gross proceeds of up to CAD $M. The company plans to use part of the gross proceeds to explore their Guigui and Batopilas projects in Chihuahua.
·         Alamos Gold Inc., declared a quarterly dividend of USD $0.025 per common share. The Company has paid dividends for 13 consecutive years during which time USD $264M has been returned to shareholders through dividends and share buybacks, including USD $27M thus far in 2022. This includes 1M shares repurchased under the normal course issuer bid in May 2022 at a cost of USD $7.4M, or USD $7.42 per share. The dividend is payable on June 30, 2022 to shareholders of record as of the close of business on June 16, 2022 (Mulatos mine, Sonora).
ON RESOURCES AND DEVELOPMENT
·         Zacatecas Silver Corp., commenced its work plans to prepare a current resource estimate at its Esperanza project, Morelos. The Esperanza project has a historical resource estimate of a measured and indicated resource of 34,352,000 tonnes of 0.98 g/t Au and 8 g/t Ag for 1.08M Oz Au and 8.9M Oz Ag and an inferred resource of 718,000 tonnes of 0.80 g/t Au and 15 g/t Ag for 18.4K Oz Au and 347.2K Oz Ag. Measured and indicated resources are 1.22M Oz AuEq of 1.11 g/t AuEq. Immediate steps to confirm resource estimate include: Extensive verification through sampling at least 10% of the historical drill core and new metallurgical test work by SGS Minerals. Additionally, the company is to commence work to identify and prioritize expansion and exploration targets throughout the project.
·         Discovery Silver Corp., reported positive metallurgical results and provided an update on its flagship Cordero project, Chihuahua. Initial results from the metallurgical testwork showed recoveries typically ranging from 90-95% for Ag, Pb, and Zn from very coarse grind size and with lower reagent consumption than what was assumed earlier. The company also announced the project study team for the Pre-Feasibility Study on Cordero project, in which plans to release an updated resource estimate in Q4, 2022. The updated resource estimate will be based on a total of 283,000m in 683 drill holes.
·         Prime Mining Corp., reported additional phase 2 drill results from 12 step out drill holes at the Guadalupe East deposit within its Los Reyes project in Sinaloa. Highlights drill intercepts include hole 22GE-53 with 9.67 g/t Au and 314 g/t Ag over a true width (TW) of 0.80m, plus 3.01 g/t Au and 220 g/t Ag over a TW of 0.90m, plus 13.65 g/t Au and 311 g/t Ag over a TW of 1.50m, plus 61.99 g/t Au and 978 g/t Ag over a TW of 3.10m, including 200 g/t Au and 2,830 g/t Ag over a TW of 0.90m, plus 5.90 g/t Au and 341 g/t Ag over a TW of 0.60m; hole 22GE-48 with 2.93 g/t Au and 62 g/t Ag over a TW of 3.90m, including 4.41 g/t Au and 105 g/t Ag over a TW of 2m, plus 1.16 g/t Au and 79 g/t Ag over a TW of 2.40m, plus 1.78 g/t Au and 82 g/t Ag over a TW of 0.50m, plus 4.29 g/t Au and 125 g/t Ag over a TW of 1.40m, plus 1.62 g/t Au and 120 g/t Ag over a TW of 1.1m, plus 1.24 g/t Au and 88 g/t Ag over a TW of 1.10m, plus 3.19 g/t Au and 34 g/t Ag over a TW of 1.10m, plus  2.31 g/t Au and 98 g/t Ag over a TW of 1.40m, including 3.68 g/t Au and 161 g/t Ag over a TW of 0.80m; hole 22GE-45 with 12.79 g/t Au and 300 g/t Ag over a TW of 2.50m, including 16.96 g/t Au and 392 g/t Ag over a TW of 1.80m; hole 22GE-51 with 3.01 g/t Au and 161 g/t Ag over a TW of 0.60m; and hole 22GE-46 with 1.95 g/t Au and 155 g/t Ag over a TW of 2.30m, including 3.11 g/t Au and 249 g/t Ag over a TW of 1.30m.
·         Magna Gold Corp., filed an independent technical report for its Margarita project, Chihuahua, dated May 24, 2022, with an effective date of April 8, 2022. The technical report contains an initial mineral resource estimate.
·         Minera Alamos Inc., provided an update on the continuing progress at its Santana project in Sonora. The company announced that the development of the Nicho Main Zone is now underway with haulage and access road largely completed. First mineralized material should be stacked on the Santana leach pad as operation move into the second half of the year. At Nicho Norte, the gold mined and stacked on the leach pad to date total approximately 18K Oz with roughly 7K Oz recovered in concentrate.
·         Vizsla Silver Corp., reported results from eighteen new holes drilled at the southern extension of the Napoleon Vein at its flagship Panuco project, Sinaloa. Drilling highlights include hole NP-22-258 with 1,139 g/t Ag, 11.48 g/t Au, 0.3% Pb, and 0.8% Zn (2,098 g/t AgEq) over a true width (TW) of 4.30m; hole NP-22-271 with 223 g/t Ag, 2.76 g/t Au, 1.5% Pb, and 5% Zn (677 g/t AgEq) over a TW of 7m, including 789 g/t Ag, 18.5 g/t Au, 5.7% Pb, and 11.7% Zn (2,871 g/t AgEq) over a TW of 0.46m, including 343 g/t Ag, 5.11 g/t Au, 1.7% Pb, and 2.9% Zn (909 g/t AgEq) over a TW of 0.61m, including 403 g/t Ag, 5.04 g/t Au, 1% Pb, and 4% Zn (985 g/t AgEq) over a TW of 0.91m, including 191 g/t Ag, 1.12 g/t Au, 2.9% Pb, and 10.9% Zn (774 g/t AgEq) over a TW of 0.99m; hole NP-22-277 with 151 g/t Ag, 2.63 g/t Au, 0.2% Pb, and 0.5% Zn (389 g/t AgEq) over a TW of 7m, including 315 g/t Ag, 2.32 g/t Au, 0.3% Pb, and 0.4% Zn (524 g/t AgEq) over a TW of 0.5m. including 630 g/t Ag, 4.94 g/t Au, 0.4% Pb, and 0.5% Zn (1,055 g/t AgEq) over a TW of 0.75m, including 189 g/t Ag, 2.7 g/t Au, 0.8% Pb, and 1.8% Zn (495 g/t AgEq) over a TW of 0.79m; and hole NP-22-281 with 202 g/t Ag, 1.55 g/t Au, 0.7% Pb, and 1.1% Zn (387 g/t AgEq) over a TW of 5.4m, including 1,275 g/t Ag, 6.25 g/t Au, 3.5% Pb, and 4% Zn (2,2027 g/t AgEq) over a TW of 0.34m, including 398 g/t Ag, 3.75 g/t Au, 1.9% Pb, and 2.7% Zn (855 g/t AgEq) over a TW of 0.84m, including 386 g/t Ag, 3.09 g/t Au, 1.8% Pb, and 2.5% Zn (779 g/t AgEq) over a TW of 0.59m. These results are part of the ongoing 12,000m resource/discovery-based drill program.
·         Zacatecas Silver Corp., released results from the Panuco Norte drilling program at its Zacatecas project, Zacatecas. Drilling highlights include hole PAN2022-057 with 224 g/t Ag and 0.15 g/t Au (224 g/t AgEq) over 1.83m; hole PAN2022-56 with 151 g/t Ag and 0.16 g/t Au (163 g/t AgEq) over 3.71m; and hole PAN2022-61 with 231 g/t Ag and 0.22 g/t Au (248 g(/t AgEq) over 1.28m. The Company has now completed 63 drill holes at Panuco North for a total of 7,240 meters. “Drilling in the eastern and central part of the Panuco North Vein has now intercepted near-surface mineralization over a strike length of 700 m, with the vein remaining open along strike and open at depth. Assay results from 22 Panuco North holes are pending”.
ON DEALS AND CORPORATE ISSUES
·         Azure Minerals Limited entered into a binding sale agreement to sell its subsidiary companies that own and operate its Mexican assets to Bendito Resources for a combination of cash and shares valued at A $20M, consisting of A $10M cash and A $10M shares in Bendito. The portfolio consists of eight properties, but Alacrán, Oposura, and Promontorio projects will form the core assets of Bendito, all located within the Laramide Copper Province in N-NW Mexico. Alacrán, in Sonora State, hosts the high-grade Mesa de Plata silver deposit and adjacent Loma Bonita gold-silver deposit which together contain 32 M Oz Ag and 150K Oz Au in JORC Mineral Resources. A Scoping Study / Preliminary Economic Assessment on Oposura, in Sonora State,showed robust results for a high-quality, high-grade massive sulphide Zn-Pg-Ag development opportunity. The project holds significant exploration upside for resource expansion. At Promontorio, Chihuahua, Azure established a high-grade, near-surface Cu-Au-Ag resource and identified prospectivity for an underlying copper porphyry system.
·         Silverton Metals Corp., entered into a share purchase agreement with Zapata Exploration Ltd., to acquire the Margaritas property in Durango by acquiring all of the issued and outstanding shares of Zapata´s Mexican subsidiary, Impulsora de Proyectos Mineros S.A. de C.V. The Margaritas property comprises two mining concessions totalling 500 hectares, and consists of a 3.5km long and 240m of vertical extension of an under-explored, high-grade epithermal vein system hosted in productive volcanic rocks of the Sierra Madre Occidental. This vein system has returned grades up to 73.7 g/t Au in dump samples and 31.6 g/t Au in rock chip channel samples with grades between 1-38 g/t Ag. To acquire all of the issued and outstanding shares of Impulsora, Silverton has agreed to issue 750K common shares and grant a net smelter return royalty of 0.5%, which may be repurchased at a price of USD $250K.
·         Pantera Silver Corp., announced the appointment of a new member to its Board of Directors. In addition, the Board of Directors of the Company has authorized the granting of incentive stock options under its Stock Option Plan to purchase 300K common shares of the Company at an exercise price of CAD $0.20 per share for a five-year term expiring June 1, 2027. The stock options are being granted to certain directors and advisors of the Company (Nuevo Taxco project, Guerrero).
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, Cu silicates (chrysocolla) in a Carbonate Replacement Deposit in Durango, Mexico.  Photo by Miguel A Heredia.

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

Hydrothermal Breccia

By Miguel A Heredia

During the 20th week of the year (May 16th to May 22th, 2022), at least 15 press releases were announced by companies working in Mexico, with six reporting resources and developments of their properties, four disclosing deals and corporate issues, three communicating production and financial results, and two announcing financing issues. ON MEXICO ISSUES, no relevant news. ON EXPLORATION, no relevant news.  ON MINING, Altaley announced that it has begun pre-production mining and mill commissioning operations at its Tahuehueto property in Durango. Excellon reported Q1, 2022 production and financial results from its Platosa mine in Durango. Mag Silver reported Q1, 2022 production and financial results from its Juanicipio project in Zacatecas, where it owns 44% interest. ON FINANCING, Alamos Gold entered into a share purchase plan (Mulatos, Sonora). Aztec Minerals announced a non-brokered private placement for gross proceeds of up to CAD $3M (Cervantes project, Sonora). ON RESOURCES AND DEVELOPMENT, Discovery Silver reported results from nineteen holes from its phase 2 drill program collared at its Cordero project in Chihuahua. GoGold received positive metallurgical results of its Los Ricos South deposit, and updated pre-feasibility activities. Silver Tiger released results from its ongoing drill program at its El Tigre project, Sonora. Sonoro reported results from seven additional drill holes completed at its Cerro Caliche project, Sonora. Vizsla released results from ten new drill holes completed at its Panuco project, Sinaloa. Starcore announced that its Board of Directors approved a USD $2M exploration budget for its most prolific projects in Mexico. ON DEALS AND CORPORATE ISSUES, Elemental Royalties announced that Bear Creek completed the acquisition of the Mercedes mine in Sonora. Fabled amended its option agreement with Golden Minerals with respect to the Santa Maria project in Chihuahua. Prismo announced the appointment of its Director of Business Development (Los Pavitos project, Sonora). Riverside and Hochschild signed an option agreement for la Union project in Sonora. ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUE

  • No relevant news.

ON EXPLORATION

  • No relevant news.

ON MINING

  • Altaley Mining Corporation announced that it has begun pre-production mining and mill commissioning operations at its Tahuehueto property in Durango. It has stockpiled over 29K tonnes of ore to be used in the commissioning process and pre-production phases of the 1st ball mill. The plan is to process up to 500 tonnes per day in the first ball mill to produce a separate precious metal rich lead concentrate and a zinc concentrate. It also will produce a copper concentrate later on. Altaley will install a second 500 tonnes ball mill to increase milling capacity to 1000 tonnes per day. It is expected to be completed in Q3, 2022.
  • Excellon Resources Inc., reported Q1, 2022 production and financial results from its Platosa mine in Durango. The company mined 14,955 tonnes and milled 14, 585 tonnes of 504 g/t Ag, 5.3% Pb, and 6.7% Zn with metallurgical recoveries of 88.5%, 72.1%, and 80% respectively, to produce 209.4K Oz Ag, 1.2M Lb Pb, and 1.7M Lb Zn (or 384K Oz AgEq), at cash and all included sustain cost (AISC) of USD $10.49 and USD $18.92 per Oz Ag produced respectively. Excellon sold 186.4M Oz Ag, 1.1M Lb Pb, and 1.55M Lb Zn (or 345LK Oz Ag).It reported revenues of USD $8.5M, gross profit of USD $583K, and cash flow from operations of USD $1.9M.
  • Mag Silver Corp., reported Q1, 2022 production and financial results from its Juanicipio project in Zacatecas, where it owns 44% interest. The company announced that 145,484 tonnes of 597 g/t Ag were processed through the Fresnillo and Saucito plants, with 2.2M payable Oz Ag, 5.3K payable Oz, 2.4M Lb Pb and 3.24 M Lb Zn produced and sold. Mag Silver also reported that pre-commercial production sales (net of treatment and processing costs) totaled USD $64.9M for the quarter, less USD $18.7M in mining and transportation costs and depreciation and amortization, netting USD $46.2M in gross profit by Juanicipio in the quarter.

ON FINANCING

  • Alamos Gold Inc., entered into a share purchase plan. The company has purchased 1M shares at an average price of USD $7.415 at a cost of USDS $7.4M (Mulatos, Sonora).
  • Aztec Minerals Corp., announced a non-brokered private placement for gross proceeds of up to CAD $3M. The company announced that Alamos Gold Inc., has indicated that it intends to purchase securities under the offering to obtain a 9.9% interest in the company.  Part of the gross proceeds will be used to conduct exploration work at its Cervantes project in Sonora, as well as for general working capital purposes.

ON RESOURCES AND DEVELOPMENT

  • Discovery Silver Corp., reported results from nineteen holes from its phase 2 drill program collared at its Cordero project in Chihuahua. Results include resource upgrade drilling for the Pre-Feasibility Study (PFS), planned for Q4, 2022, and expansion drilling of the Preliminary Economic Assessment (PEA) open pit and the resource pit. Drilling highlights include hole C21-560 with 234 g/t Ag, 0.15 g/t Au, 3.8% Pb, and 6.5% Zn (606 g/t AgEq) over 18.1m; hole C21-564 with 28 g/t Ag, 0.16 g/t Au, 0.3% Pb, and 1% Zn (85 g/t AgEq) over 51.2m, plus 91 g/t Ag, 0.12 g/t Au, 1.8% Pb, and 3% Zn (266 g/t AgEq) over 11.2m, plus 29 g/t Ag, 0.06 g/t Au, 0.4% Pb, and 0.8% Zn (75 g/t AgEq) over 80.2m, plus 95 g/t Ag, 0.21 g/t Au, 1.9% Pb, and 4.5% Zn (337 g/t AgEq) over 33.9m; hole C21-544 with 45 g/t Ag, 0.07 g/t Au, 0.9% Pb, and 1.2% Zn (122 g/t AgEq) over 60.4m, plus 23 g/t Ag, 0.04 g/t Au, 0.5% Pb, and 1% Zn (77 g/t AgEq) over 27.1m; and hole C21-574 with 272 g/t Ag, 0.16 g/t Au, 4.1% Pb, and 1.9% Zn (483 g/t AgEq) over 13.4m, plus 38 g/t Ag, 0.08 g/t Au, 0.6% Pb, and 2.2% Zn (146 g/t AgEq) over 12.3m, plus 46 g/t Ag, 0.07 g/t Au, 0.3% Pb, and 1.6% Zn (122 g/t AgEq) over 27.5m. “The Company has now completed 71,000 m in 211 holes as part of its Phase 2 drill program. Phase 2 drilling will continue through the remainder of the year and will be focused on three key areas: (1) PFS drilling consisting of reserve definition and engineering drilling; (2) resource expansion in the northeast of the deposit and at depth; and (3) initial drill testing of five property-wide targets on the Company’s extensive land package”.
  • GoGold Resources Inc., received positive metallurgical results of its Los Ricos South deposit, and updated pre-feasibility (PFS) activities. The optimized leach test work returned 82-88% and 92-97% for silver and gold recovery respectively; the optimized conditions encompassed a 96-hour leach period to maximize silver recovery, four hours of pre-aeration, 2 g/l of sodium cyanide and a nominal grind of 80% passing 75 microns; Merrill Crowe (zinc precipitation) testing determined that gold and silver was efficiently precipitated out of the pregnant solution under optimum conditions. GoGold also provided an update on the PFS. Highlights are: PFS testing complete with development of final process design criteria underway; major equipment sized and quotes received to finalize capital costs; and process flow diagrams completed.
  • Silver Tiger Metals Inc., released results from its ongoing drill program at its El Tigre project, Sonora. Drilling highlights include hole ET-21-329 with 0.13 g/t Au, 162 g/t Ag, 0.27% Cu, 6.4% Pb, and 2.8% Zn (442 g/t AgEq) over 28m, including 0.22 g/t Au, 429 g/t Ag, 0.22% Cu, 4.8% Pb, and 6.9% Zn (810 g/t AgEq) over 9.1m, including 0.32 g/t Au, 748 g/t Ag, 0.13% Cu, 3.3% Pb, and 13.7% Zn (1,317 g/t AgEq) over 3.3m, including 0.28 g/t Au, 1,624 g/t Ag, 0.1% Cu, 1.4% Pb, and 19.6% Zn (2,338 g/t AgEq) over 1m; and hole ET-21-364 with 0.14 g/t Au, 63 g/t Ag, 0.02% Cu, 0.3% Pb, and 0.8% Zn (108 g/t AgEq) over 25.9m, including 0.14 g/t Au, 83 g/t Ag, 0.03% Cu, 0.2% Pb, and 0.7% Zn (126 g/t AgEq) over 14.2m, including 0.19 g/t Au, 76 g/t Ag, 0.02% Cu, 1.8% Pb, and 3.6% Zn (253 g/t AgEq) over 2.3m, including 0.2 g/t Au, 111 g/t Ag, 0.03% Cu, 3.5% Pb, and 7.2% Zn (450 g/t AgEq) over 0.8m.
  • Sonoro Gold Corp., reported results from seven additional drill holes completed at its Cerro Caliche project, Sonora. Drilling highlights include hole SCR-305 with 0.54 g/t Au over 36.5m, including 3.59 g/t Au over 1.53m, and including 3.32 g/t Au over 1.53m; hole SCR-307 with 9.58 g/t Au over 9.14m, including 14.17 g/t Au over 6.09m, including 38.2 g/t Au over 1.53m; and hole SCR-309 with 1.37 g/t Au over 6.1m, including 3.97 g/t Au over 1.53m. “The drilling campaign at Cerro Caliche is now complete with final assays expected to be announced in June.  New geological data from over 7,200m and 63 drill holes will be included in a further updated resource estimate scheduled to be released in the fall of 2022”.
  • Vizsla Silver Corp., released results from ten new drill holes completed at the Tajitos-Copala resource area within its Panuco project, Sinaloa. Drilling highlights include hole CS-22-161 with 2,461 g/t Ag and 13.16 g/t Au (3,513 g/t AgEq) over a true width (TW) of 2.65m, including 12,424 g/t Ag and 96.3 g/t Au (20,123 g/t AgEq) over a TW of 0.2m; hole CS-22-157 with 713 g/t Ag and 3.76 g/t Au (1,013 g/t AgEq) over a TW of 4.2m, including 861 g/t Ag and 6.83 g/t Au (1,407 g/t AgEq) over a TW of 0.6m, including 1,480 g/t Ag and 5.84 g/t Au (1,947 g/t AgEq) over a TW of 0.4m, and including 1,420 g/t Ag and 6.35 g/t Au (1,928 g/t AgEq) over a TW of 1.2m; hole CS-22-154 with 2,400 g/t Ag and 11.08 g/t Au (3,286 g/t AgEq) over a TW of 1.7m, including 4,230 g/t Ag and 20.1 g/t Au (5,837 g/t AgEq) over a TW of 0.7m; and hole CS-22-158 with 1,140 g/t Ag and 6.65 g/t Au (1,671 g/t AgEq) over a TW of 1.5m, including 2,610 g/t Ag and 15.3 g/t Au (3,833 g/t AgEq) over a TW of 0.6m.
  • Starcore International Mines Ltd., announced that its Board of Directors approved a USD $2M exploration budget for its most prolific projects in Mexico. For its El Creston project, Sonora, the company has budgeted USD $500K to confirm the presence of a copper porphyry at depth. The program will include surveys, geophysical studies of magnetometry, and the development of new geological models from existing drillhole data; For its San Martin Mine, Querétaro, Starcore has budgeted USD $1M to search for the extension of the San Martin Breccia in the southwest and eastern part of the mine, as well as to confirm the geological potential of the north part of the concessions in the areas of Cerro Azul; and for new opportunities the company has allocated USD $500K such as California Au-Ag project, Durango, where the company has been invited to participate under a JV agreement. California project comprises 3,211 hectares which is part of the mineralization trend of the San Dimas (Tayoltita) District in Durango.

ON DEALS AND CORPORATE ISSUES

  • Elemental Royalties Corp., announced that Bear Creek Mining Corporation completed the acquisition of the Mercedes mine in Sonora from Equinox Gold Corp. Elemental holds an uncapped 1% Net Smelter Return (NSR) Royalty on the Mercedes Mine, payable from July 2022.
  • Fabled Silver Gold Corp., amended its option agreement with Golden Minerals Company with respect to the Santa Maria project in Chihuahua. Fabled is now requested to make the final payment of USD $2M previously due on December 4, 2022 as follow: USD $1M on December 4, 2022; USD $25K on March 31, 2023; USD $25K on June 30, 2023; USD $25K on September 30, 2023; and USD $25K on December 31, 2023. As consideration of the amendment, Fabled will issue to Golden on December 4, 2022, a number of common shares of Fabled that are equal to a value of USD $75K, at a price per share equal to the closing trading price of the shares on the TSX Venture Exchange on the trading day immediately prior to the date that such payment is made. 
  • Prismo Metals Inc., announced the appointment of its Director of Business Development: The company granted him 500K incentive stock options exercisable at a price of $0.15 per share before May 20, 2027. (Los Pavitos project, Sonora).
  • Riverside Resources Inc., and Hochschild Mining plc signed an option agreement valued at over USD $31M for la Union project, Sonora. On the Phase1 earn-in option, Hochschild can earn an undivided 51% interest by incurring USD $8M in exploration expenditures over 5 years. Upon completion of Phase 1 obligations, Hochschild can elect to form a 51:49 Joint Venture. On the Phase 2 earn-in option, Hochschild can elect to earn an additional 24% interest by incurring a further USD $3M in exploration expenditures and delivering a completed Feasibility Study (FS) over 3 years. Upon Hochschild completing the Phase 2 earn-in, Riverside will have the option to sell its interest in the project to Hochschild for USD $2M, while retaining a 1% net smelting royalty (NSR).

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 hydrothermal breccia in a low sulphidation epithermal vein system in a prospect in Durango Mexico.  Photo by Miguel A Heredia.