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

fault-plane displaying slickensides

By Miguel A Heredia

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

ON MEXICO ISSUE

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

ON EXPLORATION

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

ON MINING

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

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

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

ON FINANCING

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

ON RESOURCES AND DEVELOPMENT

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

ON DEALS AND CORPORATE ISSUES

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

ON SOCIAL RESPONSIBILITY

  • No relevant news.

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

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

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

Ginguro texture in banded quartz vein-breccia

By Miguel A Heredia

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

ON MEXICO ISSUE

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

ON EXPLORATION

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

ON MINING

  • No relevant news.

ON FINANCING

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

ON RESOURCES AND DEVELOPMENT

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

ON DEALS AND CORPORATE ISSUES

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

ON SOCIAL RESPONSIBILITY

  • No relevant news.

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

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

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

Drill core displaying ginguro bands

By Miguel A Heredia

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

ON MEXICO ISSUE

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

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

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

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

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

ON EXPLORATION

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

ON MINING

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

ON FINANCING

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

ON RESOURCES AND DEVELOPMENT

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

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

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

ON DEALS AND CORPORATE ISSUES

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

ON SOCIAL RESPONSIBILITY

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

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

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

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

Quartz stockwork veining

By Miguel A Heredia

During the 46th week of the year (November 14th to November 20th, 2022), at least 15 press releases were announced by companies working in Mexico, and 3 news published by the media with five reporting resources and developments of their properties, four communicating production and financial results, three informing on exploration results, three commenting on Mexican issues, one disclosing deals and corporate issues, one discussing social issues, and one announcing financing issues. ON MEXICO ISSUES, The mining industry is one of the industries that consumes the least vital liquid and, at the same time, the one that acquires it at the highest cost, refuting the myth about water consumption in mining. Alamos Gold, GoGold, Aztec Minerals, Silver Tiger, and Minaurum Gold reported the best drilling intercepts in Mexico on the third week of November, 2022. ON EXPLORATION, In Sonora, Aztec Minerals reported results for five drill holes from the recently completed phase 3 drill program at its Cervantes project, Tocvan announced that initial drilling is ongoing at its El Picacho project, and Minaurum provided an update on the underground rehabilitation work at the historical Promontorio mine within its Alamos Silver project. ON MINING, Starcore reported Q2, 2022 production and financial results from its San Martin mine in Queretaro. MAG Silver announced Q3, 2022 production and financial results from its Juanicipio project in Zacatecas. US Antimony reported September-October production results. SilverCrest reported Q3, 2022 production and financial results from its Las Chispas project in Sonora. ON FINANCING, Vizsla closed its previously announced bought deal financing for gross proceeds of $CAD 34.5M (Panuco project, Sinaloa).  ON RESOURCES AND DEVELOPMENT, Silver Tiger released results from its on-going drilling program at its El Tigre project in Sonora, and provided an update on the underground rehabilitation of the El Tigre Mine. Gatos Silver announced that it has filed a NI 43-101 technical report to disclose a Mineral Resource and Mineral Reserve update for its Los Gatos project, Chihuahua. Alamos Gold extended high-grade mineralization at its Puerto del Aire Deposit within Mulatos district, Sonora. GoGold released strong results from the new drilling program at its Los Ricos South Main Area and at the newly acquired Eagle concession in Jalisco. Zacatecas Silver announced its initial Mineral Resource Estimate (MRE) at its Esperanza Gold project in Morelos. ON DEALS AND CORPORATE ISSUES, Zacatecas Silver entered into an agreement with Gold Standard Media and with Future Monet Trends to raise awareness of the company`s shares among investors (Esperanza Gold project, Morelos). ON SOCIAL RESPONSIBILITY, Fundación Grupo México in alliance with the Government of Jalisco, promoted the forest recovery in the Municipalities of Sayula, Encarnación de Díaz and Ocotlán through the Ministry of Environment and Territorial Development (SEMADET) in coordination with the Intermunicipal Boards of the Environment (JIMA) and the Jalisco Solidarity Volunteers.

ON MEXICO ISSUE

  • The mining industry is one of the industries that consumes the least vital liquid and, at the same time, the one that acquires it at the highest cost, while agricultural use, which represents 77% of national water consumption, does not contribute any payment for it to the public treasury. Despite the fact that it only consumes 1.4% of the country`s water, the authorization of concessions for the use of this resource for mining constitutes the main source of income for this concept of the Ministry of Environment and Natural Resources (SEMARNAT) and the National Water Commission (CONAGUA).  According to data from the Mining Chamber of Mexico (CAMIMEX), around 50% of government incomes from payment of rights for the use of water in the country are those contributed by mining companies. The Mexican territory is divided in four availability zones and, depending on the zone in which it operates, is the amount that concessionaires must pay for each cubic meter. Mexican mining pays up to MXP $26 for each cubic meter of water, while the average for the different industries is MXP $14. Municipalities pay only MXP $0.58. Meanwhile, the agricultural and livestock sectors, which are the main consumers in the country, do not pay rights for concessions for the use of water and despite this, these users tend to blame mining for the shortage. In Mexico, there are two types of concessions for the use of water: groundwater (located in subsoil aquifers) and surface water (found in rivers and lakes). According to CONAGUA, the main uses of this water resource are agricultural and livestock, which together consume approximately 76.7%; It is followed by urban public use, which is equivalent to 14.1%; the use for electricity generation with 5.1% and industries, whose consumption amounts to 4.1%. Of this amount, 0.9% corresponds to the mining sector.  It refutes the myth about water consumption in mining.
  • Alamos Gold Inc, GoGold Inc, Aztec Minerals Corp, Silver Tiger Metals Inc, and Minaurum Gold Inc reported the best drilling intercepts in Mexico on the third week of November, 2022. Details are shown in the table below:

ON EXPLORATION

  • Aztec Minerals Corp., reported results for five drill holes from the recently completed phase 3 drill program at its Cervantes project in Sonora. Highlights of the drilling include hole CAL22-027 in the West-Central area of the California Zone with 0.68 g/t Au over 120m; and hole CAL22-029, a step out extending the California Zone to the North, with 0.77 g/t Au over 57m.  These results have expanded the footprint of the known extents of the mineralized and altered California quartz feldspar intrusive complex to the North. “The area currently being drilled measures approximately 900 meters long E – W by 730 meters wide, with demonstrated, continuous mineralization of up to 170 meters in depth. The porphyry gold-copper mineralization is still open in all directions”.
  • Tocvan Ventures Corp., announced that initial drilling is ongoing at its El Picacho project in Sonora. The drilling program is focused on two primary areas within the San Ramon prospect: Las Guijas where underground chip samples range from 0.5 to 8.2 g/t Au, with an average of 3.6 g/t Au, and San Ramon where underground samples range from 0.3 to 22 g/t Au, with an average of 5 g/t Au. The property is currently permitted for 14 drill pads. El Picacho is host to several other target areas permitted for drilling that span across the 24 km2 project area.  
  • Minaurum Gold Inc., provided an update on the underground rehabilitation work at the historical Promontorio mine within its Alamos Silver project. It informed that has successfully accessed and is dewatering the main haulage level along with clearing crosscuts in the El Tirito area of the mine, which lies approximately 300m from the Promontorio adit entrance. Approximately 200 tonnes of ballast and 50 tonnes of backfill have been removed from the first 300 m of the haulage level and stockpiled outside the mine entrance. Three of the five service holes that were drilled to provide air, water, and electricity to facilitate underground rehabilitation efforts intercepted the Promontorio Vein. The most significant drill intercept encountered 98 g/t Ag, 3.6% Pb, and 7.9% Zn over 5.8m. In addition, sampling and mapping of dumps at Promontorio revealed a boulder of massive sulfide vein assaying 3,320 g/t Ag, 54.7 g/t Au, 25% Cu, 6.5% Pb, and 1.1% Zn. “The boulder, measuring roughly a meter across, is an indication of the type of grades exploited by early miners at Promontorio”.

ON MINING

  • Starcore International Mines Ltd., reported Q2, 2022 production and financial results from its San Martin mine in Queretaro. The company milled 57,165 tonnes of 1.46 g/t Au and 13 g/t Ag with metallurgical recoveries of 87.14% and 47.86% respectively, to produce 2,452 Oz AuEq.
  • MAG Silver Corp., announced Q3, 2022 production and financial results from its Juanicipio project in Zacatecas, where it owns 44% of the property and Fresnillo plc owns the remainder 56%. The company reported on a 100% basis, that 180,808 tonnes of 513 g/t Ag were processed through the Fresnillo and Saucito plants to produce 2.42M Oz Ag, 4,901 Oz Au, 3M Lb Pb, and 4.56M Lb Zn. MAG reported a net income of USD $8.23M and cash of $USD 39.5M (Juanicipio had cash on hands of $USD 18.2M). Pre-commercial production sales totaled USD $49.7M, less USD $18.1 in mining and transportation costs and USD $6.4M in depreciation and amortization charges, netting USD $25.2M in gross profit by Juanicipio. The company also reported a cash balance at the end of the quarter of USD $18.2M down from USD $37.5M at the end of Q2, 2022.
  • US Antimony Corporation reported September-October production results. The company milled 1,116 tonnes of 0.87 g/t Au and 96 g/t Ag from its Los Juarez Mine in Querétaro. In addition, the company announced that assay results from the previously announced soil sampling and rock chip programs on the 1km x 3 km grid at Los Juarez have been received with analysis values for Sb, Au, Ag, and trace elements. These results are being tabulated and assessed. Geologist and Geophysicist in Mexico have just completed the Geophysical Survey and are in the process of interpreting the results and generating a report. This report may be available prior to Q4 but most likely will be published early in Q1 of 2023.
  • SilverCrest Metals Inc., reported Q3, 2022 production and financial results from its Las Chispas project in Sonora. The company produced 4,121 Oz Au and 373.5K Oz Ag (731.6K Oz AgEq) and had its first metal sales of 140.3K Oz Ag at an average price of USD $19.38 per Oz Ag, generating USD $2.7M in revenue. As of September 30, 2022 the company remains well-funded with cash and cash equivalents of USD $88.6M, and a debt balance of USD $90M.

ON FINANCING

  • Vizsla Silver Corp., closed its previously announced bought deal financing of 23.8M units of the company at a price of CAD $1.45 per unit for gross proceeds of $CAD 34.5M. Net proceeds will be used to advance the exploration and development of its Panuco project in Sinaloa, including the delivery of an updated mineral resource estimate in Q4, 2022, as well as for working capital and general corporate purposes.

ON RESOURCES AND DEVELOPMENT

  • Silver Tiger Metals Inc., released results from its on-going drilling program at its El Tigre project in Sonora, and provided an update on the underground rehabilitation of the El Tigre Mine. The most significant drill intercept was encountered in hole ET-22-378 with 0.12 g/t Au, 469 g/t Ag, 0.66% Cu, 0.5% Pb, and 0.6% Zn (525 g/t AgEq) over 6.5m, including 0.25 g/t Au, 1,002 g/t Ag, 0.39% Cu, 0.6% Pb, and 0.7% Zn (1,096 g/t AgEq) over 1m at the Benjamin Vein Zone, plus 0.15 g/t Au, 212 g/t Ag, 0.12% Cu, 2.5% Pb, and 6.9% Zn (524 g/t AgEq) over 6.9m, including 0.28 g/t Au, 940 g/t Ag, 0.6% Cu, 6.9% Pb, and 16.2% Zn (1,720 g/t AgEq) over 0.8m at the Shale Zone. The company also reported that the underground rehabilitation of the historic El Tigre mine is progressing well. Silver Tiger reported that to date it has rehabilitated over 450m in level 7, which was the main portal to the mine. “Silver Tiger is still on schedule to reach the Sooy Vein and then begin underground drilling of this new discovery under the Northern end of the unmined portion of the Historic El Tigre Mine”.
  • Gatos Silver Inc., announced that it has filed a NI 43-101 technical report to disclose a Mineral Resource and Mineral Reserve update for its Los Gatos project, Chihuahua.
  • Alamos Gold Inc. reported new results from its ongoing drilling program and extended high-grade mineralization at its Puerto del Aire Deposit within Mulatos district, Sonora. Puerto Del Aire is a higher-grade underground deposit, adjacent to the main Mulatos pit, and is comprised of five zones including PDA1, PDA2, Gap, Victor and Estrella. Highlights of the drilling at PDA1 Zone include hole 21MUL051 with 32.24 g/t Au uncut ( 20.78 g/t Au cut) over a  true width (TW) of 5.30m; hole 21MUL019 with 4.26 g/t Au over a TW of 2.25m, plus 26.28 g/t Au uncut (20.44 g/t Au cut) over a TW of 4.60m; hole 21MUL014 with 4.43 g/t Au over a TW of 4.50m, plus 18.01 g/t Au uncut (15.27 g/t Au cut) over a TW of 6.15m; hole 21MUL016 with 3.64 g/t Au over a TW of 6m, plus 3.02 g/t Au over a TW of 1.50m, plus 3.12 g/t Au over a TW of 11.50m, plus 3.63 g/t Au over a TW of 26.05m; hole MUL21021 with 10.66 g/t Au over a TW of 5.90m, plus 4.20 g/t Au over a TW of 12.25m, plus 14.57 g/t Au over a TW of 2.75m, plus 10.86 g/t Au over a TW of 8.35m; and hole 21MUL015 with 4.90 g/t Au over a TW of 1.15m, plus 6.78 g/t Au over a TW of 10.50m, plus 4.99 g/t Au over a TW of 1.40m. Highlights of the drilling at PDA2 Zone include hole 22MUL039 with 4.06 g/t Au over a TW of 0.85m, plus 13.89 g/t Au uncut (9.26 g/t Au cut) over a TW of 10.35m; hole 22MUL053 with 8.75 g/t Au over a TW of 13.15m, plus 7.7 g/t Au over a TW of 6m, plus 8.90 g/t Au over a TW of 3m, plus 4.20 g/t Au over a TW of 12.95m; hole 22MUL058 with 7.62 g/t Au over a TW of 14.65m; hole 22MUL052 with 3.07 g/t Au over a TW of 1.50m, plus 32.60 g/t Au over a TW of 2.35m, plus 10.90 g/t Au over a TW of 1.50m, plus 11.40 g/t Au over a TW of 1.50m; and hole 22MUL046 with 4.01 g/t Au over 1.70m, plus 13.22 g/t Au over 4.50m. Highlights of the drilling at Victor-Gap Zone include hole 21MUL011 with 31.97 g/t Au uncut (11.80 g/t Au cut) over a TW of 12.90m. “Drilling to date has demonstrated the significant potential to further expand high-grade mineralization at Puerto Del Aire with the deposit open in multiple directions”.
  • GoGold Resources Inc., released strong results from the new drilling program at its Los Ricos South Main Area and at the newly acquired Eagle concession in Jalisco. Highlights of the drilling include hole LRGG-22-209 collared at Los Ricos South Main Area with 3.15 g/t Au and 276 g/t Ag (6.84 g/t AuEq or 513 g/t AgEq) over 33.2m, including 30.19 g/t Au and 2,588 g/t Ag (64.69 g/t AuEq or 4,852 g/t AgEq) over 3m, including 73.10 g/t Au and 5,620 g/t Ag (148.03 g/t AuEq or 11,103 g/t AgEq) over 1m; and hole LRGG-22-043 collared at the Eagle Concession with  0.67 g/t Au and 78 g/t Ag (1.72 g/t AuEq or 129 g/t AgEq) over 8.2m, plus 1.32 g/t Au and 216 g/t Ag (4.20 g/t AuEq or 315 g/t AgEq) over 20.7m, including 2.73 g/t Au and 428 g/t Ag (8.44 g/t AuEq or 633 g/t AgEq) over 9.3m, including 7.89 g/t Au and 999 g/t Ag (21.21 g/t AuEq or 1,591 g/t AgEq) over 2.5m, including 17.20 g/t Au and 2,130 g/t Ag (45.80 g/t AuEq or 3,420 g/t AgEq) over 0.70m. The purpose of the program is to better define the very high grade portions of the current deposit that may be amenable to bulk underground mining.  “The Company exploration team has been completing detailed mapping and sampling at Jamaica over the last year and sees the same structure that was drilled in the main zone at Los Ricos South extending for several kilometers over the Jamaica concessions.  This offers the potential for an additional bulk tonnage target in Los Ricos South, with continuity from the Main Area and Eagle”.
  • Zacatecas Silver Corp., announced its initial Mineral Resource Estimate (MRE) at its Esperanza Gold project in Morelos. A summary of the MRE is shown in the table below:

ON DEALS AND CORPORATE ISSUES

  • Zacatecas Silver Corp., entered into an agreement with Gold Standard Media and with Future Money Trends LLC to raise awareness of the Company’s shares among investors.  The engagement is for 12 months of services, with amounts payable as follows: USD $100K on acceptance of the TSX Venture Exchange, USD $100K within 3 months, USD $100K within 6 months and USD $100K within 9 months.  Subject to TSX Venture Exchange acceptance, the activities will commence late November, 2022 and are for a period of one year.

ON SOCIAL RESPONSIBILITY

  • Fundación Grupo México in alliance with the Government of Jalisco, promoted the forest recovery in the Municipalities of Sayula, Encarnación de Díaz and Ocotlán through the Ministry of Environment and Territorial Development (SEMADET) in coordination with the Intermunicipal Boards of the Environment (JIMA) and the Jalisco Solidarity Volunteers.

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

On the picture above, quartz stockwork veining from a low sulphidation epithermal vein system in a project in Sonora, Mexico.  Photo by Miguel A Heredia.

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

Fault Plane showing slickensides

By Miguel A Heredia

During the 44th week of the year (October 31st to November 06th, 2022), at least 21 press releases were announced by companies working in Mexico, and 2 news published by the media with six reporting resources and developments of their properties, six disclosing deals and corporate issues, five informing on exploration results, three commenting on Mexican issues, two announcing financing issues, and one communicating production and financial issues. ON MEXICO ISSUES, The Canadian government has told its Mexican counterpart that it is concerned about the investment climate in Mexico’s energy and mining sectors. The President of Mexico, Andres Manuel López Obrador stated that the rescue efforts of the bodies of 10 miners who were trapped in the El Pinabete mine, in Sabinas, Coahuila, were suspended due to a change of supplier. GoGold, GR Silver, Pan American Silver, and Southern Silver reported the best drilling intercepts in Mexico on the first week of November, 2022. ON EXPLORATION, In Sonora, Ranchero Gold provided an exploration update on its Daniela project, and Reyna Gold announced results from its on-going, district-scale exploration program at its La Gloria property. In Sinaloa, Prismo signed a definitive surface agreement with the Francisco Villa Ejido and commenced drill permitting for its Los Pavitos project. In Jalisco, Almadex mobilised an exploration team to commence a follow-up drill program at its San Pedro project. In Coahuila, Monumental provided an update of its currently on-going exploration program at its Jemi project. ON MINING, Capstone reported Q3, 2022 production and financial results from its Cozamine mine in Zacatecas. ON FINANCING, Kootenay increased its previously announced private placement from $4M to $4.35M, and granted an option to Red Cloud Securities Inc, to offer for sale an additional 15% of the number of units of the company at a price of $0.09 per unit (Columba project, Chihuahua). Xali Gold received advance net profits interest payment from Sun River Gold for the El Orito Tailings project in the State of Mexico.  ON RESOURCES AND DEVELOPMENT, Sonoro Gold announced that it has engaged SRK to prepare an NI43-101 compliant updated Mineral Resource Estimate for its Cerro Caliche project in Sonora. GoGold reported results from the second set of drill holes collared at the newly acquired Eagle concession on the Los Ricos South property in Jalisco. GR Silver released results from 38 infill drill holes in the resource update program underway at its Plomosas mine area in Sinaloa. Osisko provided an operational update on its San Antonio Gold project in Sonora. Pan American release results from 45 new infill and exploration drill holes collared at its La Colorada Skarn project in Zacatecas. Southern Silver announced results from its final 4 drill holes at its Cerro Las Minitas, Durango. ON DEALS AND CORPORATE ISSUES, Silverton Metals announced that its Board of Directors approved a change of the company’s name to Lodestar Battery Metals Corp (Peñasco Quemado project, Sonora). Ranchero Gold appointed its interim CEO and CFO (Santa Daniela project, Sonora). Pan American and Agnico delivered definitive binding offer to acquire Yamana. Sierra Madre entered into an amendment and restated the share purchase agreement with First Majestic in respect of the previously announced acquisition of La Guitarra mine in the State of Mexico.  Sierra Metals received letter of intent from Compañía Minera Kolpa for a proposed business combination. Xali Gold increased its ownership in the San Dieguito de Arriba plant in Nayarit from 30% to 50% by issuing 4,125,758 shares at a price of $0.066 to Magellan.  ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUE

  • The Canadian government has told its Mexican counterpart that it is concerned about the investment climate in Mexico’s energy and mining sectors. Mary Ng, Minister of International Trade, Export Promotion, Small Business and Economic Development of Canada, expressed this position to Raquel Buenrostro, Secretary of the Economy of Mexico. Minister Ng reaffirmed Canada’s commitment to advance in the implementation of the Treaty between Mexico, the United States and Canada (T-MEC) and to continue with the work carried out within the framework of initiatives such as the Economic Dialogue of Canada-Mexico High Level to deepen bilateral business, trade and investment ties and support inclusive and resilient economic growth. Two-way merchandise trade between the two countries was USD $41.7 billion in 2021. Mexico is Canada’s third-largest merchandise trading partner in a single country (after the United States and China).
  • The President of Mexico, Andres Manuel López Obrador stated that the rescue efforts of the bodies of 10 miners who were trapped in the El Pinabete mine, in Sabinas, Coahuila, were suspended due to a change of supplier, but will be resumed.
  • GoGold Resources Inc., , GR Silver Mining Ltd.,  Pan American Silver Corp.,  and Southern Silver Exploration Corp., reported the best drilling intercepts in Mexico on the first week of November. Details are shown in the table below:

ON EXPLORATION

  • Ranchero Gold Corp., provided an exploration update on its Daniela project in Sonora. The company reported that it has completed the follow-up work of the nine priority targets previously identified at the property. Ranchero Gold stated that the San Francisco, Carboneras Sur, Carboneras Este, Rincón, and Moritas Este targets have shown evidence of gold mineralization, related alteration and lithologies known to host significant gold deposits in the district. “Subsequent field efforts currently underway will include detailed mapping, systematic sampling and drone-based magnetic surveys designed to identify potential mineralized host rocks below surface”.
  • Reyna Gold Corp., announced results from its on-going, district-scale exploration program at its La Gloria property in Sonora. The company identified multiple mineralized zones with high grade gold, silver, and copper that align with major geophysical anomalies, silica alterations, and structural controls on the property. Highlights of the 8 rock sampling collected at La Republicana Zone returned values from 4.03 g/t Au up to 56.90 g/t Au; 7 samples ranging from 13 g/t Ag up to 47 g/t Ag; and 2 samples with 0.2% Pb and 0.5% Pb, with a single assay of 2.41% Cu. At Las Carmelitas zone, 7 rock samples returned 3 values of 0.11 g/t Au, 0.33 g/t Au, and 10.52 g/t Au; 5 samples ranging from 67 g/t Ag up to 116 g/t Ag; and 6 samples ranging from 1.53% up to 2.25% Cu. At Western Zone, 7 rock samples returned values from 2.51 g/t Au up to 16.60 g/t Au; 2 samples with values of 21g/t Ag and 249 g/t Ag; and a single sample with 1.15% Cu, 3.4% Zn, 1.3% Pb, 0.1 g/t Au, and 27 g/t Ag. At El Sombrero Zone, 7 samples returned gold values ranging from 1.1 g/t Au up to 23.6 g/t Au; 4 samples ranging from 149 g/t Ag up to 733 g/t Ag; 4 samples ranging from 0.68% up to 3.60% Cu; 4 samples ranging from 0.2% Pb up to 1.4% Pb, and 4 samples ranging from 0.1%Zn to 0.2% Zn. The company is presently conducting an IP survey at four target zones: La Republicana, Western, Las Carmelitas, and Main Zone. After completion of the IP geophysical survey, drilling will recommence in this area focused on La Republicana, Western, Las Carmelitas and Main Zone targets.
  • Prismo Metals Inc., signed a definitive surface agreement with the Francisco Villa Ejido, the surface owners over the Los Pavitos project in Sinaloa. This agreement is for two years and allows Prismo to carry out exploration work including drilling. The company has commenced drill permitting planned to begin in early 2023. Meanwhile, Prismo will continue with the geological mapping and sampling program to cover the remaining area to identify drill targets.
  • Almadex Minerals Ltd., mobilised an exploration team to commence a follow-up drill program at its San Pedro project in Jalisco. The drill program will target a recently identified structural trend associated with float rock of vein material, soil anomalies and old mining workings, where channel sampling has encountered 0.02 g/t Au and 138 g/t Ag over an interval of 6.8m, and 3.7 g/t Au and 168 g/t Ag over an interval of 4.2m. A total of 14 grab and chip samples collected on this trend averaged 0.6 g/t Au and 180 g/t Ag.
  • Monumental Minerals Corp., provided an update of its currently on-going exploration program at its Jemi project in Coahuila, which consists of detailed geological mapping, regional stream sediment sampling, ground radiometric geophysical surveys, and litho geochemistry. To date, the stream sediment sampling program, consisting of 47 samples has been completed. It returned 5 samples with values greater than 7.8 ppm dysprosium (Dy), 65.3 ppm neodymium (Nd); and up to 14.1 ppm Dy and 160 ppm Nd, defining four general areas of interest along the west and south portions of the company’s concessions, of which two are associated with known HREE mineralized (eudialyte bearing) peralkaline rock (Jemi Dyke Area and Veladora North). The remaining two areas with anomalous Dy and Nd concentrations were previously unrecognized as being prospective (Zone 2 and Zone 4). Follow-up exploration work to identify the source of the high REEs at these two areas will be undertaken during the current field program for quick delineation.

ON MINING

  • Capstone Copper Corp., reported Q3, 2022 production and financial results from its Cozamine mine in Zacatecas. The company mined 3,829 tonnes per day with an average grade of 1.86% and metallurgical recovery of 96.8%, to produce 36.74 M Lb Cu at a cash cost of USD $1.20 per Lb produced.

ON FINANCING

  • Kootenay Silver Inc., increased its previously announced private placement from $4M to $4.35M, and granted an option to Red Cloud Securities Inc, to offer for sale an additional 15% of the number of units of the company at a price of $0.09 per unit. If the offer for sale from Red Cloud is exercised in full, the total gross proceeds to the company will be $5M (Columba project, Chihuahua).
  • Xali Gold Corp., received advance net profits interest (NPI) payment from Sun River Gold, LLC for the El Orito Tailings project in the State of Mexico. Sun River has started making advance NPI payments of USD $15K per month to Xali Gold as part of the second extension agreement on the El Oro Tailings project, in El Oro, State of Mexico. Advanced NPI payments of USD $50K per month will be paid by Sun River once commercial production is reached (or first concentrate is produced or dore gold is poured) and during the first year of operation, after which normal 5% NPI payments are to be made.

ON RESOURCES AND DEVELOPMENT

  • Sonoro Gold Corp., announced that it has engaged SRK Consulting Inc., to prepare an NI43-101 compliant updated Mineral Resource Estimate for its Cerro Caliche project in Sonora. This updated Mineral Resource Estimate is to include an additional 7,200m of drilling completed in May 2022 which returned multiple higher grade gold intercepts and expanded several known mineralized gold zones within the concession.
  • GoGold Resources Inc., reported results from the second set of drill holes collared at the newly acquired Eagle concession on the Los Ricos South property in Jalisco. Highlights of the drilling include hole LRGAG-22-035 with 1.64 g/t Au and 265 g/t Ag (5.17 g/t AuEq or 387 g/t AgEq) over 110.6m, including 11.31 g/t Au and 2,198 g/t Ag (40.62 g/t AuEq or 3,047 g/t AgEq) over 11.5m, including 30.24 g/t Au and 6,392 g/t Ag (115.48 g/t AuEq or 8,661 g/t AgEq) over 3.5m, including 63.24 g/t Au and 12,729 g/t Ag (232.96 g/t AuEq or 17,472 g/t AgEq) over 1.5m, including 104.50 g/t Au and 13,742 g/t Ag (287.73 g/t AuEq or 21,580 g/t AgEq) over 0.90m; and hole LRGAG-22-032 with 1.36 g/t Au and 108 g/t Ag (2.79 g/t AuEq or 210 g/t AgEq) over 65.8m, including 2.96 g/t Au and 217 g/t Ag (5.85 g/t AuEq or 439 g/t AgEq) over 28.1m, including 7.17 g/t Au and 1,013 g/t Ag (20.68 g/t AuEq or 1,551 g/t AgEq) over 4.3m, including 25 g/t Au and 3,020 g/t Ag (65.27 g/t AuEq or 4,895 g/t AgEq) over 0.6m. “Mapping and geophysics indicate the Eagle structure extending in excess of 2.5km to the northwest, at which point it continues onto the Company’s previously owned Jamaica concessions”. “The Eagle concession connects the Company’s concessions held in the southern portion of its Los Ricos South project, including the Main area where the Initial Resource was released, to its northern concessions in Los Ricos South, which includes the Jamaica exploration target.  As a result, all of the concessions in Los Ricos South are now contiguous”. This offers the potential for an additional bulk tonnage target in Los Ricos South, with continuity from the Main Area and Eagle.
  • GR Silver Mining Ltd., released results from 38 infill drill holes in the resource update program underway at its Plomosas mine area in Sinaloa. Highlights of the drilling include hole PLI22-38 with 301 g/t Ag, 0.41 g/t Au, 1.6% Pb, and 2.1% Zn (471 g/t AgEq) over a true width (TW) of 15.9m, including 856 g/t Ag, 0.70 g/t Au, 1.3% Pb, and 2.3% Zn (1,052 g/t AgEq) over a TW of 3.9m; hole PL!22-23 with 268 g/t Ag, 1 g/t Au, 2.4% Pb, 1.7% Zn, and 0.2% Cu (518 g/t AgEq) over a TW of 36.5m, including 626 g/t Ag, 0.03 g/t Au, 1% Pb, 0.6% Zn, and 0.1% Cu (684 g/t AgEq) over a TW of 4.9m, plus 1028 g/t Ag, 5.11g/t Au, 8.3% Pb, 7% Zn, and 0.9% Cu (2,101 g/t AgEq) over a TW of 5.9m, including 2,667 g/t Ag, 1.27 g/t Au, 12.2% Pb, 6.9% Zn, and 0.3% Cu (3,431 g/t AgEq) over a TW of 2.2m; hole PLI22-24 with 1,159 g/t Ag, 0.53 g/t Au, 1.4% Pb, 1% Zn, and 0.8% Cu (1,354 g/t AgEq) over a TW of 0.20m, plus 135 g/t Ag, 0.39 g/t Au, 4% Pb, 1.7% Zn, and 0.2% Cu (365 g/t AgEq) over a TW of 7.1m, including 292 g/t Ag, 0.13 g/t Au, 3.1% Pb, 1.3% Zn, and 0.1% Cu (453 g/t AgEq) over a TW of 2m; hole PLI22-25 with 629 g/t Ag, 0.56 g/t Au, 9.2% Pb, 4% Zn, and 0.4% Cu (1,146 g/t AgEq) over a TW of 11.4m, including 1,791 g/t Ag, 0.23 g/t Au, 1.3% Pb, 1.4% Zn, and 0.1% Cu (1,917 g/t AgEq) over a TW of 1.4m; hole LP122-27 with 109 g/t Ag, 0.91 g/t Au, 3.5% Pb, 1.7% Zn, and 0.1% Cu (371 g/t AgEq) over a TW of 7.2m, including 212 g/t Ag, 2.74 g/t Au, 10.9% Pb, 4.1% Zn, and 0.22 % Cu (961 g/t AgEq) over a TW of 2.1; hole PLI22-30 with 344 g/t Ag, 0.04 g/t Au, 0.2% Pb, 0.3% Zn, and 0.1% Cu (370 g/t AgEq) over a TW of 1m, plus 2,251 g/t Ag, 0.12 g/t Au, 1.1% Pb, 0.1% Zn, and 0.6% Cu (2,365 g/t AgEq) over a TW of 0.5m, plus 1,697 g/t Ag, 0.21 g/t Au, 0.2% Pb, 0.2% Zn, and 0.6% Cu (1,792 g/t AgEq) over a TW of 0.1m, plus 134 g/t Ag, 0.05 g/t Au, 0.6% Pb, 2.7% Zn, and 0.1% Cu (273 g/t AgEq) over a TW of 3m, including 328 g/t Ag, 0.08 g/t Au, 1.1% Pb, 5% Zn, and 0.2% Cu (576 g/t AgEq) over a TW of 0.9m; hole PLIP22-30 with 69 g/t Ag, 2.67 g/t Au, 0.1% b, 0.2% Zn, and 0.2% Cu (353 g/t AgEq) over a TW of 10.8m, including 227 g/t Ag, 5.39 g/t Au, 0.3% Pb, 0.6% Zn, and 0.4% Cu (809 g/t AgEq) over a TW of 1.2m, plus 219 g/t Ag, 40.18 g/t Au, 0.3% Pb, and 1% Cu (4,074 g/t AgEq) over a TW of 0.5m; and hole PLIP22-42 with 40 g/t Ag, 0.9 g/t Au, 10.5% Pb, 9.8% Zn, and 0.4% Cu (852 g/t AgEq) over a TW of 6.5m. “GR Silver Mining’s infill drilling program is continuing in the Plomosas Mine Area, and to date has added 105 holes (7,330 m) of new drilling inside the historic Plomosas Mine since completion of the Company’s 2021 NI 43-101 mineral resource estimation”.
  • Osisko Development Corp., provided an operational update on its San Antonio Gold project in Sonora. The company reported that 1.1M tonnes of 0.58 g/t Au and 0.25 g/t Ag have been placed on the heap leach pad for an estimated total of 20,090 oz of Au and 8,818 oz of Ag. Osisko also reported that 10,149 Oz Au and 3,516 Oz Ag at recoveries to the end of the third quarter of 2022 of 50.5% for gold and 39.9% for silver total production have been produced from the heap leach pad as of October 27, 2022, of which 7,350 Oz Au were sold.
  • Pan American Silver Corp., release results from 45 new infill and exploration drill holes collared at its La Colorada Skarn project in Zacatecas. Highlights of the drilling are shown in the table below:

With the inclusion of these new drill holes, this area has been expanded to measure approximately 200 metres in diameter and up to 250 metres vertically.

  • Southern Silver Exploration Corp., announced results from its final 4 drill holes on the North Felsite-North Skarn targets at its Cerro Las Minitas, Durango. Highlights of the drilling include hole 22CLM-194 with 140 g/t Ag, 0.04 g/t Au, 0.01% Cu, 1.9% Pb, and 0.1% Zn (212 g/t AgEq or 5.2% ZnEq) over a true width (TW) of 2.3m, plus 386 g/t Ag, 0.17 g/t Au, 0.25% Cu, 6% Pb, and 4.7% Zn (827 g/t AgEq or 20.1% ZnEq) over a TW of 0.7m, plus 336 g/t Ag, 0.14 g/t Au, 0.16% Cu, 6.5% Pb, and 4.7% Zn (780 g/t AgEq or 18.9% ZnEq) over a TW of 2.6m, including 746 g/t Ag, 0.09 g/t Au, 0.12% Cu, 17.1% Pb, and 13.2% Zn (1,904 g/t AgEq or 46.3% ZnEq) over a TW of 0.6m; and hole 22CLM-193 with 124 g/t Ag, 0.02 g/t Au, 0.03% Cu, 1.4% Pb, and 0.4% Zn (195 g/t AgEq or 4.7% ZnEq) over a TW of 5.6m, including 219 g/t Ag, 0.02 g/t Au, 0.04% Cu, 2.5% Pb, and 0.6% Zn (333 g/t AgEq or 8.1% ZnEq) over a TW of 3m. “Drilling on these targets, which started in September 2021, has now tested a 400 metre strike-length of mineralization which wraps around the eastern and northern perimeter of the Central Intrusion and links previously identified mineralization in the Mina La Bocona and Skarn Front deposits. Twenty-five holes totaling 11,275 metres were completed in the two target areas to depths of up to 450 metres below surface”.

ON DEALS AND CORPORATE ISSUES

  • Silverton Metals Corp., announced that its Board of Directors approved a change of the company’s name to Lodestar Battery Metals Corp., to better reflects the company’s focus on exploration and development of lithium and silver projects (Peñasco Quemado project, Sonora).
  • Ranchero Gold Corp., made the appointments of its interim CEO and CFO (Santa Daniela project, Sonora).
  • Pan American Silver Corp. and Agnico Eagle Limited delivered definitive binding offer to acquire Yamana Gold Inc. Pan American would acquire all of the issued and outstanding common shares of Yamana, and Yamana would sell certain subsidiaries and partnerships which hold Yamana´s interest in its Canadian assets to Agnico Eagle, including the Canadian Malartic mine. “The consideration consists of 153,539,579 common shares in the capital of Pan American (“Pan American Shares”); USD$1.0 billion in cash contributed by Agnico Eagle; and 36,089,907 common shares in the capital of Agnico Eagle (“Agnico Eagle Shares”). Under the Binding Offer, each Yamana Share would be exchanged for approximately USD$1.04 in cash, 0.1598 Pan American Shares and 0.0376 Agnico Eagle Shares, for an aggregate value of USD$5.02 per Yamana Share based on the closing price of each Pan American Share and Agnico Eagle Share on November 3, 2022. The Binding Offer is not subject to any financing condition or additional due diligence”.
  • Sierra Madre Gold and Silver Ltd., entered into an amendment and restated the share purchase agreement with First Majestic Silver Corp., in respect of the previously announced acquisition of La Guitarra mine in the State of Mexico. The amendment states that (a) the 2% net smelter return royalty on La Guitarra will now be granted by Compañía Minera La Guitarra S.A. de C.V., to First Majestic prior to closing of the transaction, rather than rather than concurrently with closing as previously anticipated; and (b) certain governmental approvals will be required prior to closing of the transaction. All other material terms of the transaction remain unchanged. The company expects to complete the transaction by the end of 2022.
  • Sierra Metals Inc., received letter of intent from Compañía Minera Kolpa S.A. for a proposed business combination. A Special Committee of the independent members of Sierra Metals´ Board of Directors is exploring, reviewing and considering financing, restructuring and strategic options in the best interest of Sierra Metals.
  • Xali Gold Corp., increased its ownership in the San Dieguito de Arriba (SDA) plant in Nayarit from 30% to 50% by issuing 4,125,758 shares at a price of $0.066 to Magellan. The company also informed that has received interest from third parties desiring to enter into JV in the SDA plant and near-surface high grade mineralization near the plant.

ON SOCIAL RESPONSIBILITY

  • No relevant news.

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

On the picture above, a fault plane from an intermediate-sulphidation epithermal Au-Ag-Pb-Zn vein system in a project in Zacatecas, Mexico.  Photo by Miguel A Heredia.

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

Banded Quartz

By Miguel A Heredia

During the 40th week of the year (October 03rd to October 09th, 2022), at least 20 press releases were announced by companies working in Mexico, and 4 news published by the media with seven reporting resources and developments of their properties, four announcing financing issues, four discussing social issues, three informing on exploration results, two communicating production and financial results, two commenting on Mexican issues, and two discussing deals and corporate issues. ON MEXICO ISSUES, The Discoveries Mining Conference 2022 was held in Hermosillo, Sonora on October 4-6, 2022. The Governor of Guerrero, Evelyn Salgado announced the reinstatement of the State Mining Council and confirmed that Acapulco will host the 35th edition of the Mining Convention in 2023. ON EXPLORATION, In Sonora, Canuc reported that recent work at its San Javier project has identified eight targets within four distinct mineralized zones.  In Durango, Orex announced the completion of the Phase-1 reconnaissance exploration drilling program on its Sandra project.  In Oaxaca, Vortex provided an update of the exploration work completed to date at its Riqueza Marina project.  ON MINING, Bear Creek presented Q3, 2022 production results from its Mercedes mine in Sonora. Guanajuato Silver provided an update highlighting the impact of additional production from the Topia and San Ignacio mines in Durango and Guanajuato states respectively. ON FINANCING, Advance Lithium closed a previously announced private placement financing for gross proceeds of $75K (Sarape project, Sonora). Capitan Mining announced a non-brokered private placement for gross proceeds of up to CAD $3M (Cruz de Plata project, Durango). Guanajuato Silver has arranged to issue 2,468,750 common shares of the company in settlement of outstanding accounts payable and accrued liabilities to various parties totaling approximately CAD $987K (Pinguico mine, Guanajuato).  Barksdale announced that Teck Resources has elected to exercise its pro-rata equity participation rights for gross proceeds of $264K (San Javier project, Sonora).   ON RESOURCES AND DEVELOPMENT, Azucar Minerals completed second hole into the large porphyry lithocap target at its El Cobre project in Veracruz. Gatos Silver provided updates on its Cerro Los Gatos Mineral Resources, Mineral Reserves, and Life of Mine. Minera Alamos announced positive results of an independent Preliminary Economic Assessment (PEA) for its Cerro de Oro project in Zacatecas. Oroco announced that, based on drill results, expanded the North Zone mineralization, and confirmed higher grade at its Santo Tomas project in Sinaloa.  Tarachi Gold received final metallurgy results for its Magistral Mill and Tailings project in Durango. Torex received key environmental permit for its Media Luna project in Guerrero. Prime Meridian provided an update on its La Verde project in Michoacan. ON DEALS AND CORPORATE ISSUES, Starcore announced results of its annual general meeting of shareholders (San Martin mine, Queretaro). Riverside regained 100% control of the La Union project in Sonora after Hochschild announced its decision to not to proceed with the option. ON SOCIAL RESPONSIBILITY, Peñoles and Fresnillo Plc work together for an appropriate and healthy habitat. Peñoles and Fresnillo Plc were awarded with a distinction in Ethics and Values ​​of the Industry 2022. GoGold presented its second annual sustainability report that sets out the company´s performance and achievements with respect to its environmental, social, and governance practices. MAG Silver announced the publication of its inaugural Sustainability Report.

ON MEXICO ISSUES

  • The Discoveries Mining Conference 2022 was held in Hermosillo, Sonora on October 4-6, 2022, and included more than 50 talks covering topics ranging from the latest geological discoveries, new technologies applied to mining and exploration, social, legal and political issues affecting the industry, and the challenges and obstacles confronted and overcome on the way to production.
  • The Governor of Guerrero, Evelyn Salgado announced the reinstatement of the State Mining Council and confirmed that Acapulco will host the 35th edition of the Mining Convention in 2023. She also recognized this industry, which each year leaves an approximate spill of MXP $3,400M. The Governor pointed out that the mining sector is one of the main economic activities in Guerrero, which has a presence in 29 municipalities in the Central, Tierra Caliente and North regions of the state, with an important gold production that places the entity in the first places. She stressed that the mining industry in Guerrero generates more than 4,500 direct jobs and more than 22,000 indirect jobs, with an economic benefit of more than MXP $3,400M, which translates into development and well-being, for which she urged that the Mining Council in Guerrero, be a space for dialogue and consensus that allows the construction of shared strategies and programs hand in hand with the various sectors with a comprehensive perspective seeking the development of Guerrero. In addition, she declared that Guerrero is the state of the country with the largest investment announced for this year for more than USD $1,327M for new mining projects, estimating growth with a favorable environment.

ON EXPLORATION

  • Canuc Resources Corporation reported that recent work at its San Javier project in Sonora has identified eight targets within four distinct mineralized zones, which now merit-follow-up work. At the Silver Zone, about additional 100 soils samples were collected to better define a strong Ag and Au anomaly. Now, the Ag soils anomaly is 750m in strike length with values up to 21 g/t Ag and 1.65 g/t Au, and remains open in both the southwest and northeast direction. Recent prospecting and rock sampling (10 samples) on the northeast end of this zone, approximately 400m of the soil survey has returned Ag values from 38 g/t Ag to 1,533 g/t Ag associated to magnetite veins which daylight near the margins of a magnetic high. Additionally, seven samples were collected near old artisanal workings and assayed from 27g/t Ag to 604 g/t Ag and from 0.1 g/t Au to 1.2 g/t Au. More sampling is planned throughout this area. At the Gold Zone South and Gold Zone Central, the company collected 1,829 channel samples from 11 bulldozed trenches. All the trenches contain elevated Au values ranging from 0.2 g/t Au to 40 g/t Au. At the South Gold Zone, two targets measuring 300m to 400m in diameter have been outlined. Sampling on one of those called La Cascada returned 0.16 g/t Au and 0.48% Cu over a width of 13m, while the other called Loma Pelona assayed 0.59 g/t Au and 0.47% Cu over a width of 10.5m. The Central Gold Zone contains 3 distinct targets measuring 300 to 400m in diameter. La Mesa target includes elevated Au values ranging from trace to 1.42 g/t Au. One section returned 0.28 g/t Au over 16m. At La Curva target the trenching sampling returned 0.45 g/t Au over 6m; 0.48 g/t Au over 4m; and 0.45 g/t Au over 4m. At La Quebrada target, trenching sampling returned 0.68 g/t Au over a width of 14m. Six channel samples collected over a an area of 100mlong by 50m wide, located approximately 80m southeast of the trench area, returned an average grade of 3.09 g/t Au, ranging from 0.018 g/t Au to 11.4 g/t Au. At the North Zone, a target called Chapoteados was prospected and sampled on an area of  600m long by 200m wide. Twenty two samples were taken and contained an average grade of 0.38% Cu, 0.3 g/t Au, and 4 g/t Ag. A second target called Arroyo Hondo, located 800m northeast of the Chapoteados target also was sampled. Twenty five samples collected on an area of 300m by 100m averaged 15 g/t Ag, (ranging from trace to 145 g/t Ag), 0.14 g/t Au, (ranging from  0.01 g/t Au to 1.19 g/t Au), and 220 ppm Cu, (ranging from 20 ppm to 0.38% Cu).
  • Orex Minerals Inc., announced the completion of the Phase-1 reconnaissance exploration drilling program on its Sandra project in northwest Durango. Sandra project is a JV agreement between Pan American Silver Corp., (60%) and Orex Minerals (40%). Phase-1 consisted of 2,665.30m in 8 diamond drill holes.  Four holes were drilled on targets in the Central Corridor aand four holes were drilled in the Eastern Corridor. Drilling highlights include hole SA-22-066 collared in the Central Corridor with 1.04 g/t Au over a true width (TW) of 1.53m; and hole SA-22-.073 collared in the Eastern Corridor with 39 g/t Ag, 0.1% Pb, and 0.2% Zn over a TW of 14.5m, including 51 g/t Ag, 0.2% Pb, and 0.,2% Zn  over a TW of 5.1m.
  • Vortex Metals Inc., provided an update of the exploration work completed to date at its Riqueza Marina Volcanogenic Massive Sulphide project in Oaxaca. The company completed a gravity and magnetic survey at the Rhyolite Dome target that produced extensive geophysical anomalies coincident with geochemical anomalies, including the West and East Gossan Areas.   Rock sampling  returned 12 samples with more than 1% Cu, up to 20.2% Cu and an additional 34 samples contain more than 1,000 ppm Cu. Vortex plans to drill this target once the drill permits are secured.

ON MINING

  • Bear Creek Mining Corporation, presented Q3, 2022 production results from its Mercedes mine in Sonora. The company mined 128,698 tonnes and processed 148,211 tonnes of 2.45 g/t Au with metallurgical recovery of 95.53% to produce 11,169 Oz Au. Bear Creek sold 12,310 Oz Au. It also reported a gold stream of 2,759 Oz Au.
  • Guanajuato Silver Company Ltd., provided an update highlighting the impact of additional production from the recently acquired Topia and San Ignacio mines in Durango and Guanajuato states respectively. Guanajuato Silver increased 85% its production from July to August 2022. The company reported that in August, 2022 it mined from the El Cubo & San Ignacio mines in Guanajuato, and Topia mine in Durango 41,372 tonnes and milled 36,948 tonnes to produce 128,780 Oz Ag, 1,091 Oz Au, 348,137 Lb Zn, and 266,881 Lb Pb (267,525 Oz AgEq) with metallurgical recoveries of 88.9%, 85.6%, 81.8%, and 89.5% respectively, at a cash cost of $15.09 per Oz AgEq.

ON FINANCING

  • Advance Lithium Corp., closed a previously announced private placement financing for gross proceeds of $75K. Proceeds will be used to advance the Lithium and Sarape projects, and for general corporate purposes (Sarape project, Sonora).
  • Capitan Mining Inc., announced a non-brokered private placement for gross proceeds of up to CAD $3M. It will consists of 15M of common shares at a price of CAD $0.20 per share. Net proceeds will be used to advance drilling and work program at the Cruz de Plata project in Durango, as well as for working capital and general corporate expenses.
  • Guanajuato Silver Company Ltd., has arranged to issue 2,468,750 common shares of the company at a deemed price of CAD $0.40 per share in settlement of outstanding accounts payable and accrued liabilities to various parties totaling approximately CAD $987K (Pinguico mine, Guanajuato). 
  • Barksdale Resources Corp., announced that Teck Resources Limited has elected to exercise its pro-rata equity participation rights for gross proceeds of $264K. Teck will hold approximately 9.9% of Barksdale’s equity on a partially diluted basis. Net proceeds from the financing 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

  • Azucar Minerals Ltd., completed second hole into the large porphyry lithocap target at its El Cobre project in Veracruz. “This hole passed trough typical clay dominant lithocap alteration into phyllic alteration. Large intervals of brecciated rock were intersected possibly reflecting a diatreme like body that may have disrupted any earlier porphyry alteration zonation in this area. Alteration data has been collected from the core using a Terraspec infrared spectrometer along with samples for assay and fluid inclusion analysis. Any future drilling in this area will be guided by the results and interpretation of these analyses from both holes”.
  • Gatos Silver Inc., provided updates on Mineral Resources, Mineral Reserves, and Life of Mine for its Cerro Los Gatos and Esther mines in Chihuahua. Figures are shown in the tables below:

Cerro Los Gatos – Mineral Reserves as at July 1, 2022.

Cerro Los Gatos – Mineral Resources as at July 1, 2022.

Esther – Mineral Resources as at July 1, 2022.

*Mineral Resources are exclusive of Mineral Reserves.

As for the Cerro Los Gatos Life of Mine plan using only the 2022 Mineral Reserves, the company reported that the current reserve mine life continues to 2028; the average annual production of 7.8M Oz Ag will generate an average annual cash flow of USD $79M (after tax) through 2028 at USD $22 per Oz Ag price; an all in sustaining cost (AISC) of  USD $7.06 per Oz of payable Ag, net of by-product credits; an average cost of USD $89.76 per tonne milled ; and a net present value (NVP) at a discount rate of USD $491M(USD $337M after tax).

  • Minera Alamos Inc., announced positive results of an independent Preliminary Economic Assessment (PEA) for its Cerro de Oro project in Zacatecas. Highlights of the PEA include an average annual gold production approaching 60K Oz (approx. 60K-to 70K Oz in years 1 through 4); a 8.2 mine life based on initial mineable total of 59M tonnes of 0.37 g/t Au, heap leached at an average rate of  approximately 20K tonnes per day of over 0.4 g/t Au in years 1 through 4; 477K Oz Au produced in loaded carbon/doré; a  life of mine (LOM) strip ratio of 0.3:1(waste: mineralization); a LOM all included sustaining cost (AISC) of USD $873 per Oz Au , averaging USD $763 per Oz Au in years 1 through 4; an after tax NPV at 5% discount rate of USD $150.5M and an internal rate return (IRR) of USD $111%; a pre-production capital cost of USD $28.1M (includes 30% contingency); a payback period of 11 months; and used crushing plant already purchased to reduce up-front capital requirements. The company also reported an updated mineral resource estimate containing 67M tonnes of 0.37 g/t Au(790K Oz Au contained) based on an upward revision of the base case resource metal price to USD $1,700 per Oz.
  • Oroco Resource Corp., announced that, based on drill results, expanded the North Zone mineralization, and confirmed higher grade at its Santo Tomas project in Sinaloa. Extension drilling highlights include hole NO19 with 0.26% and 0.006% Mo over 127.8M, plus 0.21% Cu and 0.008% Mo over 126m; hole   NO21 with 0.34% Cu and 0.008% Mo over 81.4m, plus 0.41% Cu and 0.018% Mo over 32.9M, and hole NO24 with 0.30% Cu and 0.016% Mo over 86.6m, plus 0.22% Cu and 0.007% Mo over 90.1m. High grade drilling highlights include hole NO22 with 0.37% Cu and 0.009% Mo over 152.1m, plus 0.21% Cu and 0.005% Mo over 102m; hole NO23 with 0.31% Cu and 0.005% Mo over 139m, including 0.55% Cu and 0.006% Mo over 56.7m; hole NO25 with 0.40% Cu and 0.004% Mo over 286m; and hole NO26 with 0.6% Cu and 0.01% Mo over 92.2m, plus 0.25% Cu and 0.009% Mo over 69.8m. A total of 35 holes (22,769m of drilling) have now been completed in the North Zone, spanning approximately 1,300m of strike length, with intersections of good grade mineralization returned in all holes for which the company has received assays.
  • Tarachi Gold Corp., received final metallurgy results for its Magistral Mill and Tailings project in Durango. Highlights include up to 99% of Cu in solution precipitated into high-grade in sulphidation, acidification, recycling and thickening (SART) concentrate; more gold expected to report to Merrill-Crowe circuit for greater metal value payability compared to assumptions used in Preliminary Economic Assessment; and lower mercury CN-solubility than previously assumed and potential for 2-stage SART process to remove mercury from concentrate.
  • Torex Gold Resources Inc., received approval from Mexico’s Secretariat of Environmental and Natural Resources (SEMARNAT) on the key, culminating environmental permit for its Media Luna project in Guerrero. The approval (MIA Integral) allows for operations to begin at Media Luna and builds on the receipt of the MIA Modification received last year, which allowed for the execution of development activities on the south side of the Balsas River. The Company has also received approval to increase the power draw at site to 45 megawatts.
  • Prime Meridian Resources Corporation provided an update on its La Verde project in Michoacan. The company and the vendor have elected to modify the La Verde project purchase agreement by changing the requirement for two USD $200K option payments due under the current agreement to USD $20K minimum monthly payments. With this modification, the work program expenditures for the next six months are projected as follow: USD $165,600 for monthly options payment; USD $22,434 for La Verde project-mining duties; and USD $262,200 for La Verde project-Phase 1 work program. The Phase 1   program will consist of Structural Mapping / Magnetometer Study; Prospecting / Geochemical Sampling; and 1,200m of Definition Drilling.

ON DEALS AND CORPORATE ISSUES

  • Starcore International Mines Ltd., announced results of its annual general meeting of shareholders (San Martin mine, Queretaro).
  • Riverside Resources Inc., regained 100% control of the La Union project in Sonora after Hochschild Mining Corporation announced its decision to not to proceed with the option. Riverside was reimbursed for past taxes and fees with more than USD $500K of new mineral exploration and consolidation work completed to-date as per the option agreement with Hochschild. “Exploration work completed to-date includes extensive field mapping, sampling, and geochemistry. The newly mapped and sampled areas show alteration features typical of CRD targets and particularly the gossan oxidation of potential sulfide bodies at shallow depths (<100m) that remain wide open for relatively low-risk, high-potential exploration”. Riverside will integrate all of the data and evaluate new partnership opportunities in the near future.

ON SOCIAL RESPONSIBILITY

  • Industrias Peñoles S.A.B. de and Fresnillo plc., work together for an appropriate and healthy habitat. Both companies have the purpose of contributing to the well-being of the population through sustainable mining practices. Therefore, they recognize the shared responsibility to create, maintain and develop an appropriate habitat for the life of all species, including people. Octavio Alvídrez, CEO of Fresnillo plc., stated that “promoting the urban development of the communities in which we operate, as well as preserving and restoring the biodiversity of the areas surrounding our facilities, is a priority in our management and a constant throughout the life cycle of each of our mining units”.
  • Industrias Peñoles S.A.B. de and Fresnillo plc., were awarded with a distinction in Ethics and Values ​​of the Industry 2022 in recognition of their corporate responsibility practices. Both Peñoles and Fresnillo plc have a social impact strategy through various outreach programs and thereby contribute to the well-being of families in the communities where they operate, in addition to promoting values ​​and self-development among their neighbors.
  • GoGold Resources Inc., presented its second annual sustainability report that sets out the company´s performance and achievements with respect to its environmental, social, and governance practices (ESG). Highlights of this report include 0.006 tCO2 per Oz AgEq produced; 0.004 tCO2e per tonne of ore processed; 9,500 hours of safety and professional development training; awarded the ESR distinction (Empresa Socialmente Responsables – Corporate Social Responsibility); USD $17.1M spent in local purchases, including USD $422K in community investment; and adoption of new policies related to Environment, Human Rights, Diversity Equity and Inclusion, Climate Change, and Water Resources.
  • MAG Silver Corp., announced the publication of its inaugural 2021 Sustainability Report. Highlights of this report include zero fatalities at the Juanicipio project and MAG Silver´s exploration projects; a Juanicipio project(one million hours) lost time injury frequency rate  of 10.8 (employees and mine contractors; excluding construction contractors; over 51,000 hours dedicated to safety training in 2021 at the Juanicipio project; risk management system reviewed and updated in 2021 and 2022; a freshwater use ratio of 4% and a renewable power ratio of 84% at the Juanicipio Project while in the construction phase; in 2021, MAG Silver benchmarked current Climate-related risk and opportunities performance with the recommendations of the Task Force on Climate-related Financial Disclosures; MAG’s 2021 commitment to increase Board and senior management diversity means that currently 38% of MAG’s Board and 40% of MAG’s employees are female; and MAG’s Human Rights Policy and Diversity, Equity and Inclusion Policy were updated and approved, complementing and enhancing pre-existing commitments.

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 quartz from an intermediate sulphidation vein system in a project in Zacatecas, Mexico.  Photo by Miguel A Heredia.

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