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

Quartz-pyrite-FeOx stockwork veining

By Miguel A Heredia

During the 16th week of the year (April 18th to April 24th, 2022), at least 13 press releases were announced by companies working in Mexico, and three news published by the media, with four reporting resources and developments of their properties, three communicating production and financial results, three disclosing deals and corporate issues, three commenting on Mexican issues, two announcing financial issues, and one informing on exploration results. ON MEXICO ISSUES, Mexico Chamber of Deputies approved the initiative proposed by Andres Manuel López Obrador to reform the mining law on the nationalization of lithium. Fernando Alanís, Pro Secretary of the Confederation of the Industrial Chamber (CONCAMIN), declared that the project to reform the Mining Law to reserve the new concessions for the exploitation of lithium to the State is ambiguous and will add even more uncertainty and concern to investors. Armando Ortega, president of the Mining Task Force, of the Canadian Chamber of Commerce (CanCham) in Mexico, stated that the proposed reform of the Mining Law on lithium would violate Mexico’s commitments in international treaties.  ON EXPLORATION, In Sonora, Reyna Gold announced results from eight holes drilled at its flagship La Gloria project. ON MINING, Americas Gold and Silver reported Q1, 2022 production results from its Cosala mine in Sinaloa. First Majestic announced Q1, 2022 production results from their Mexican mine operations. Sierra Metals reported Q1, 2022 production results from their Bolivar and Cusi mines located in Chihuahua. ON FINANCING, Magna Gold announced completion of its debt settlement with PEAL de Mexico SA de CV (San Francisco mine, Sonora). Tarachi Gold amended the option agreement terms with Minerals de Tarachi (Magistral Mill and tailings project, Durango).  ON RESOURCES AND DEVELOPMENT, Magna Gold announced Maiden Resource Estimate for its Margarita project in Chihuahua. Bear Creek filed a NI 43-101 technical report for its Mercedes mine in Sonora, which includes the Mineral Reserves and Resources as of December 31, 2021. Oroco released results from its ongoing drilling program at its Santo Tomas project in Sinaloa. Sonoro announced results from 15 holes drilled at the Colorado and Guadalupe zones within its Cerro Caliche project in Sonora.  ON DEALS AND CORPORATE ISSUES, Benjamin Hill signed and investor relation agreement and granted incentive stock options to other contractors (Sonora Gold project, Sonora). Gatos Silver received a notice from the New York Stock Exchange as a result of its failure to timely file its annual report (Cerro Los Gatos mine, Chihuahua). Silver Wolf announced the appointment of a new member to its Technical Advisory Board (Ana Maria project, Durango).  ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUE

  • Mexico Chamber of Deputies approved the initiative proposed by Andres Manuel López Obrador to reform the mining law on the nationalization of lithium, with 275 votes in favor, 24 against and 187 abstentions. The reform contemplates the authorization of mining concessions with the exception of lithium, which will be administered directly by the Mexican State. López Obrador reiterated that his government will not allow foreigners to exploit lithium even if they have previous concessions. Instead, there will be a State company “to exploit, explore, extract, process, industrialize and sell it”.
  • Fernando Alanís, Pro Secretary of the Confederation of the Industrial Chamber (CONCAMIN), declared that the project to reform the Mining Law to reserve the new concessions for the exploitation of lithium to the State is ambiguous and will add even more uncertainty and concern to investors. Despite the fact that Mexico is among the 10 largest producers worldwide of 17 minerals, being the first in silver and the eighth in gold, the mining industry has lost attractiveness for investment in recent years after the government suspension of mineral concessions, in addition to the high taxes paid by the sector in our country.
  • Armando Ortega, president of the Mining Task Force, of the Canadian Chamber of Commerce (CanCham) in Mexico, stated that the proposed reform of the Mining Law on lithium would violate Mexico’s commitments in international treaties. He argued that minerals cannot be reserved, in this case, for the exclusive exploration and exploitation by the State, without having made the aforementioned reservation in the Treaty between Mexico, the United States and Canada (T-MEC). From his point of view, reservations are areas of exclusion of obligations and commitments, and to do so without prior negotiation is arbitrary and prohibited. The CanCham argued that reserving lithium only for the exploration and exploitation of the Mexican State ex-post is in violation of both the provisions of the World Trade Organization (WTO), as well as those corresponding to all Free Trade Agreements (FTA). ) signed by Mexico.

ON EXPLORATION

  • Reyna Gold Corp., announced results from eight holes totalling 710m of its ongoing 10,000m drilling program conducted at its flagship La Gloria project, Sonora. Drilling highlights include hole LG-22-005 with 3.95 g/t Au over 7.85m, including 19.65 g/t Au over 1.3m; hole LG-22-001 with 0.51 g/t Au over 30.6m; hole LG-22-007 with 8.61g/t Au over 0.6m; and hole LG-22-008 with 4.13 g/t Au over 0.5m.

ON MINING

  • Americas Gold and Silver Corporation reported Q1, 2022 production results from its Cosala mine in Sinaloa. The company produced 127K Oz Ag, 3.9M Lb Pb, and 9.6M Lb Zn. Americas expects to produce 0.7-0.9M Oz Ag, 36-40M Lb Pb, and 13-15M Lb Zn in the full year 2022.
  • First Majestic Silver Corporation announced Q1, 2022 production results from their Mexican mine operations. Figures by  mine are shown in the table below:
  • Sierra Metals Inc., reported Q1, 2022 production results from their Bolivar and Cusi mines located in Chihuahua. At Bolivar mine, the company processed 187,556 tonnes of 0.58% Cu, 11 g/t Ag, and 0.16 g/t Au with metallurgical recoveries of 85.12%,  88.44%, and 63.53% respectively, to produce 2M Lb Cu, 58K Oz Ag, and 592 Oz Au (2,6M Lb CuEq). At Cusi mine, Sierra metals processed 87,924 tonnes of 174 g/t Ag, 0.19 g/t Au, and 0.3% Pb with metallurgical recoveries of 85.37%, 49.94%, and 76.96% respectively, to produce 420K Oz Ag, 274 Oz Au, and 388K Lb Pb (458K Oz AgEq).
  • Sonoro Gold Corp., announced results from 15 holes drilled at the Colorado and Guadalupe zones within its Cerro Caliche project in Sonora. Goal of this drill program is to increase the size and grade of the project´s oxide gold mineralization. Drilling highlights include hole SCR-289 with 0.56 g/t Au over 7.62m, including 1.38 g/t Au over 1.52m; hole SCR-293 with 0.87 g/t Au over 12.19m, including 3.62 g/t Au over 1.52m, plus 0.92 g/t Au over 6.10m, including 2.22 g/t Au over 1.53m, plus 2.26 g/t Au over 7.62m, including 10.25 g/t Au over 1.53m; hole SCR-296 with 0.67 g/t Au over 7.62m, including 1.83 g/t Au over 1.53m, plus 0.42 g/t Au over 6.1m, including 1 g/t Au over 1.52m; hole SCR-299 with 9.02 g/t Au over 10.67m, including 15.56 g/t Au over 6.10m; and hole SCR-301 with 0.49 g/t Au over 10.67m, including 1.79 g/t Au over 1.53m.

ON FINANCING

  • Magna Gold Corp., announced completion of its debt settlement with PEAL de Mexico SA de CV. the company has issued an aggregate of 1,660,132 common shares in the capital of the company at a deemed price of $0.76 per Common Share to PEAL de Mexico S.A. de C.V., in settlement of outstanding debt in the aggregate amount of USD 1M (San Francisco mine, Sonora).
  • Tarachi Gold Corp., amended the option agreement terms with Minerales de Tarachi , resulting in a significant reduction in future cash obligations. A comparison of the original and amended option terms can be found in the table below:

ON RESOURCES AND DEVELOPMENT

  • Magna Gold Corp., announced Maiden Resource Estimate for its Margarita project in Chihuahua. Indicated resources using a cut-off of 75 g/t Ag are 1.854M tonnes of 205 g/t Ag to contain 12.22M Oz Ag and inferred resources are 0.45M tonnes of 153 g/t Ag to contain 2.24M Oz Ag. The deposit includes a well defined high grade core of 0.78M tonnes of 332 g/t Ag for a total of 8.32M Oz Ag contained. Magna reported that mineralization at Margarita is open in all directions and at depth. It also informed that the drill program discovered and confirmed multiple parallel vein systems most notable of which were the Juliana and Caido veins. The company plans to conduct follow-up drilling to define additional resources in these parallel vein systems. The current resource estimate only includes mineralization in the main Margarita vein.
  • Bear Creek Mining Corporation filed a NI 43-101 technical report for its Mercedes mine in Sonora, which includes an independent audit of the Mineral Reserves and Mineral Resources as of December 31, 2021. Measured + Indicated Mineral Resources (exclusive of Mineral Reserves) are 2.98M tonnes of 4 g/t Au and 36 g/t Ag to contain 384K Oz Au and 3.5M Oz Ag; and Inferred Resources of 884K tonnes of 4.5 g/t Au and 41 g/t Ag to contain 128K Oz Au and 1.17M Oz Ag. Proven + Probable Mineral Reserves are 2.2M tonnes of 3.75 g/t Au and 29 g/t Ag to contain 267K Oz Au and 2.1M Oz Ag.
  • Oroco Resource Corp., released results from its ongoing drilling program conducted on the North Zone within its Santo Tomas project in Sinaloa. Drilling highlights include hole N010 with 0.36% Cu, 0.011% Mo, 0.03 g/t Au, and 2 g/t Ag (0.42% CuEq) over 311m; hole N011 with 0.39% Cu, 0.007% Mo, 0.04 g/t Au, and 3 g/t Ag (0.45% CuEq); and hole N012 with 0.35% Cu, 0.015% Mo, 0.02 g/t Au, and 3 g/t Ag (0.41% CuEq) over 296.9m. “The 2021-2022 drill program in the North Zone has now spanned 900 m of strike length along the core of the mineral deposit”. Holes N013 to N016 in the North Zone and B001 to B004 in the Brasiles Zone are completed and constitute an additional 6,205 m of drilling from which assays have yet to be generated.  To date, the 20 drill holes that have been completed at Santo Tomas (16 in the North Zone) total 14,838 m of diamond drilling, mainly in HQ core size.

ON DEALS AND CORPORATE ISSUES

  • Benjamin Hill Mining Corp., signed and investor relation agreement with Pacificquest Communications Corp., for a term of one year. In connection with the agreement, the company granted 200K options exercisable at $0.50 per common share having a term of 3 years and subject to vesting of 25% of the options each calendar quarter over a one-year period.   The company also granted 100K incentive stock options to other contractors exercisable at $0.50 per common share having a term of 3 years and subject to vesting of 25% of the options each calendar quarter over a one-year period.   (Sonora Gold project, Sonora).
  • Gatos Silver Inc., received a notice from the New York Stock Exchange (NYSE) as a result of its failure to timely file its annual report. “In accordance with Section 802.01E of the NYSE Listed Company Manual, the NYSE will closely monitor the status of the Company’s late filing and related public disclosures for up to six months from the date of the filing delinquency”  (Cerro Los Gatos mine, Chihuahua).
  • Silver Wolf Exploration Ltd., announced the appointment of a new member to its Technical Advisory Board (Ana Maria project, Durango).

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, quartz-py-FeOx stockwork veining in an intrusive in Guanajuato, Mexico.  Photo by Miguel A Heredia.

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

Quartz breccia cemented by tourmaline

By Miguel A Heredia

During the 4th week of the year (January 24th to January 30th, 2022), at least 25 press releases were announced by companies working in Mexico, and 6 news published by the media, with ten informing on exploration results, nine reporting resources and developments of their properties, five communicating production results, four discussing social issues, two commenting on Mexican issues, and one disclosing deals and corporate issues.  ON MEXICO ISSUES, Americas Gold hosted an official opening ceremony at its Cosalá operation in Sinaloa. Pablo Méndez Alvídrez, president of the Mining Cluster of Chihuahua stated that this sector is a mainstay of economic development since it represents 4% of the State gross domestic public (GDP). ON EXPLORATION, In Sonora, Silver Spruce announced that it has initiated an environmental report for a drill permit at its Diamante project and reported high grade results from historical sampling, Aztec–Kootenay JV completed first 14 holes totaling 2,810.6m of the current 5,000m, 22-hole Phase 2 RC drill program at the Cervantes property, Ranchero Gold released results from its ongoing drilling program at its Santa Daniela project, Orogen provided an update of the drilling exploration program funded by Hochschild on its Sarape project, and announced the termination of the option agreement by Hochschild, Tarachi Gold provided an overview of the exploration activities carried out in 2021 at its Jabali and San Javier mining concessions, and Colibri announced it has resumed the drilling program at its flagship Evelyn project. In Chihuahua, Golden Minerals released results from 5 holes drilled at its Yoquivo project.  In Durango, Southern Empire started a drill program at its San Pedro project, Silverton announced that it completed a geophysical 3D modeling of airborne electromagnetic data and the commencement of a seismic survey at its Pluton project, and Canasil announced results of three holes drilled at its Nora project. ON MINING, Altaley reported Q4 2021 production and financial results from its Campo Morado mine in Guerrero. Equinox Gold provided 2022 production and cost guidance for its Los Filos mine in Guerrero. Sierra Metals announced Q4 and full year 2021 production results from their Bolivar and Cusi mines in Chihuahua. MAG Silver reported Q4 and full year 2021 production results from its Juanicipio project in Zacatecas. Magna Gold announced Q4 and full year 2021 production results from its San Francisco Mine in Sonora. ON FINANCING, no relevant news. ON RESOURCES AND DEVELOPMENT, Capitan Mining reported results from its RC drilling program as well as from chip sampling on the Jesus Maria Silver deposit at its Peñoles project in Durango. Silver Tiger released results from its ongoing drilling program on the Sooy Vein at its El Tigre project, Sonora. SilverCrest provided an update on the construction of its Las Chispas mine in Sonora. GoGold released high grade results from nine holes collared at Mololoa-Tamara area within its Los Ricos North project in Jalisco. Southern Silver announced a new high grade mineral discovery on the El Sol concession at its Cerro Las Minitas project, Durango. Gatos Silver provided an update on the resource and reserve estimation process following recent reconciliation work at its Cerro Los Gatos, Chihuahua, and provided 2022 production and cost guidance. Vizsla provided a 2021 year end summary of its activities at its flagship Panuco project in Sinaloa. Tarachi Gold made significant progress in developing its Magistral tailing project in Durango towards a production decision. Mithril provided a Q4, 2021 on activities at its Copalquin project, Durango. ON DEALS AND CORPORATE ISSUES, Bear Creek provided an update of the acquisition from Equinox of Mercedes mine, Sonora. ON SOCIAL RESPONSIBILITY, Minera Penmont (Fresnillo plc) carried out in collaboration with the Urban Development and Ecology area of ​​the Caborca ​​City Council, the first Reforestation Day 2022.  Four educational institutions that Grupo México supports in the Mexican Republic have obtained results above the national average in the most recent evaluations carried out by the Ministry of Public Education. Minera Media Luna (Torex Gold) invested over MXP $7M in seven public works in four communities. Minera San Xavier S.A de C.V. informed that, as of January 2022, it has made significant progress in the execution of its biophysical and social Closure Plan, which has been Responsible, Inclusive and Participatory.

ON MEXICO ISSUE

  • Americas Gold and Silver Corporation hosted an official opening ceremony at its Cosalá operation in Sinaloa with the participation of the Mexican Minister of Economy, the Governor of Sinaloa State, The Cosala Major, and the CEO of the company. All of them pointed the importance of the mine to the local community, the Sinaloa State and the country. All three government representatives thanked to the company for its perseverance during the illegal blockade and the commitment of capital to re-open the mine.
  • Pablo Méndez Alvídrez, president of the Mining Cluster of Chihuahua stated that this sector is a mainstay of economic development since it represents 4% of the State gross domestic public and has generated more than 20,000 direct jobs and more than 102,000 indirect jobs, which is a great contribution to the state.

ON EXPLORATION

  • Silver Spruce Resources Inc., announced that it has initiated an environmental report for a drill permit on its Diamante project and reported high grade results from historical sampling. The environmental report will be filed to SEMARNAT once it is completed and is expected within four to six weeks of submission. The company identified historical reports with maps, field sections and assays for 77 previously unreleased samples with precious and base metal values reporting up to 25.69 g/t Au, 1,360 g/t Ag, 18 % Pb, 33 % Zn and 1.47% Cu.
  • Aztec Minerals Corp.-Kootenay Silver Inc. JV completed first 14 holes totaling 2,810.6m of the current 5,000m, 22-hole Phase 2 RC drill program at the Cervantes property in Sonora. Samples have been submitted to the lab for analysis and results are expected to arrive in the next several weeks. Meanwhile, the company will continue the surface sampling and mapping on the property to continue the 2021 Phase 1 surface program.
  • Ranchero Gold Corp. released results from its ongoing drilling program at its Santa Daniela project in Sonora. Hole MA-21-013 intersected 1.11 g/t Au over 13.15m, and hole MA-21-14 intersected 1.18 g/t Au over 21.15m on La Colmena target. The company announced that further sampling was required both above and below the interval sampled in both holes, and results will be released shortly.
  • Orogen Royalties Inc., provided an update of the drilling exploration program funded by Hochschild Mining Plc., on its Sarape project in Sonora. Hochschild funded a 3,163 m drill program with eight holes testing the quartz-carbonate Sarape Vein. All holes intercepted weakly anomalous gold and silver, except hole SAR-21-12 which intersected 3.76 g/t Au and 15 g/t Ag over 2.4m, including 9.5 g/t Au and 29 g/t Ag over 0.7m. Hochschild terminated the option agreement and Orogen is seeking a new exploration partner for the project.
  • Tarachi Gold Corp., provided an overview of the exploration activities carried out in 2021 at its Jabali and San Javier mining concessions. At the Jabali concession, a Phase 2 underground drilling program at the La Dura mine returned the company´s best drill intersections to date in hole JAB-219-009 with 6.91 g/t Au over 63.4m, including 17.42 g/t Au over 9.3m and 17.37 g/t Au over 13.9m; and hole JAB-21-010 with 1.7 g/t Au over 42m, including 8 g/t Au over 3.4m. In addition, the company completed a short RC surface drilling program with hole JAB-21-14 returning 7.26 g/t Au over 12m. At the San Javier concession, a surface diamond drilling program encountered a mineralized breccia system in several holes. Hole SJA-20-005 intersected 11.9 g/t Au over 2m; hole SJA-20-006 encountered 5.39 g/t Au over 5.6m; and hole SJA-21-014 intersected 0.45 g/t Au over 52m, including 4.11 g/t Au over 1.5m.  Tarachi also informed that “plans are underway to conduct field work in 2022 on some of the other concessions in Sonora including La Texana. The goal of the field program will be to identify potential drill targets for later in the year”.
  • Colibri Resource Corporation announced it has resumed the drilling program at its flagship Evelyn project in Sonora. The company will continue with its 10,000m RC drill program of which 3,122m have been completed in 22 holes before pausing for the holiday season on December 18, 2021. “The Company is planning on completing the 10,000 metres of RC drilling on the Evelyn property in two phases. Phase 1 which is now resuming is aimed at evaluating areas of anomalous and higher-grade Au assay results from surface and trench exposures coincident with magnetic gradients and lineaments and with structures identified through geological mapping. Phase 2 drilling will be planned to follow up positive results from Phase 1 as well as test numerous targets including chargeability anomalies derived from the Induced Polarization (“IP”) survey completed in 2021, targets derived from interpretation of the drone-borne magnetic survey completed in 2020, and targets derived from the on-going property wide geological/structural interpretation”.
  • Golden Minerals Company released results from 5 holes drilled of a 21 holes second phase drill program recently completed on the Pertenencia Vein at its Yoquivo project in Chihuahua. Highlights include hole YQ-021-002 with 0.51 g/t Au and 706 g/t Ag over 2.4m, plus 0.16 g/t Au, and 91 g/t Ag over 8.5m, including 0.18 g/t Au and 116 g/t Ag over 2.4m, including 0.67 g/t Au and 309 g/t Ag over 0.4m; hole YQ-021-004 with 4.02 g/t Au and 1,473 g/t Ag over 1.5m, plus 0.33 g/t Au and 110 g/t Ag over 1.6m, including 0.92 g/t Au and 313 g/t Ag over 0.3m, plus 0.49 g/t Au and 158 g/t Ag over 3.5m, including 1.67 g/t Au and 578 g/t Ag over 0.3m, plus 1.03 g/t Au and 267 g/t Ag over 2.4m, including 5.15 g/t Au and 1,320 g/t Ag over 0.4m, plus 0.04 g/t Au and 179 g/t Ag over .5m, including 0.11 g/t Au and 904 g/t Ag over 0.5m. The company is currently awaiting additional assay results that it expects to report in the coming months.
  • Southern Empire Resources Corp., started its first core drilling program at its San Pedro project in Durango. The drilling program will test the West Zone where sampling on a NW linear trending heterolithic breccia up to 300m in length returned Au values between 0.33 g/t Au and 2.2 g/t Au. This breccia is coincident with IP chargeability and resistivity geophysical anomalies. The drilling program will consist of 2,000 in 6 to 9 holes.
  • Silverton Metals Corp., completed a 3D modelling of airborne electromagnetic data (ZTEM) and the commencement of a seismic survey at its Pluton project in Durango. The company announced that the ZTEM processing and 3D modelling was successful in identifying significant anomalies potentially related to mineralization. These are coincident to six targets previously identified. In addition, “to supplement the ZTEM, the company has commenced work on a seismic line survey to better understand the sedimentary units and identify the contact between the overlying clastic rocks and the limestones which have the potential to host manto and chimney Carbonate Replacement Deposits”.
  • Canasil Resources Inc., announced results of three holes drilled on the Candy vein at its Nora project in Durango. Hole NRC-21-13 intersected 2.96 g/t Au, 241 g/t Ag, 0.15% Cu, 0.02% Pb, and 0.2% Zn (489 g/t AgEq) over a true width (TW) of 3.46m, including 5.49 g/t Au, 432 g/t Ag, 0.15% Cu, 0.01% Pb, and 0.2% Zn (876 g/t AgEq) over a TW of 1.69m, including 9.69 g/t Au, 530 g/t Ag, 0.33% Cu, 0.02% Pb, and 0.2% Zn (1,323 g/t AgEq) over a TW of 0.32m, plus 8,83 g/t Au, 706 g/t Ag, 0.17% Cu, 0.02% Pb, and 0.2% Zn (1,411 g/t AgEq) over a TW of  0.55m, and plus 2.12 g/t Au, 199 g/t Ag, 0.01% Pb, and 0.01% Zn (363 g/t AgEq) over a TW of 0.91m; hole NRC-21-14 intersected 2.13 g/t Au, 164 g/t Ag, 0.09% Cu, 0.1% Pb, and 0.1% Zn (340 g/t AgEq) over a TW of 1.43m, including 2.14 g/t Au, 207 g/t Ag, 0.06% Cu, 0.04% Pb, and 0.1% Zn (381 g/t AgEq) over a TW of 0.85m, plus 1.4 g/t Au, 181 g/t Ag, 0.01% Cu, 0.03% Pb, and 0.1% Zn (290 g/t AgEq) over a TW of 0.67m; and hole NCR-21-15 encountered 2.21 g/t Au, 211 g/t Ag, 0.06% Cu, 0.03% Pb, and 0.2% Zn (390 g/t AgEq) over a TW of 1.54m, including 2.34 g/t Au, 213 g/t Ag, 0.02% Cu, 0.03% Pb, and 0.2% Zn (394 g/t AgEq) over a TW of 0.75m, plus 2.73 g/t Au, 84 g/t Ag, 0.04% Pb, and 0.1% Zn (296 g/t AgEq) over a TW of 0.45m.” The Candy vein structure remains open in both directions along strike and to depth for continued drill testing, and the low base metal values in these drill intercepts suggest drilling to date is still in the higher levels of the system”.

ON MINING

  • Altaley Mining Corporation reported Q4 2021 production and financial results from its Campo Morado mine, Guerrero. The company milled 183.1K tonnes of 1 g/t Au, 118 g/t Ag, 1.1% Pb, and 4.3% Zn with metallurgical recoveries of 21%, 47%, 30%, and 71% respectively, to produce 12.2K tonnes of Zn concentrate and 2.7K tonnes of lead concentrate, at cash and AISC of $0.88 and USD $1.06 per Lb Zn respectively. The company reported revenue of CAD $17.07M from Zn concentrate and CAD $2.9M from Pb concentrate for total revenue of CAD $19.98M.
  • Equinox Gold Corp., provided 2022 production and cost guidance for its Los Filos mine in Guerrero. The production for 2022 is estimated at 160K-180K Oz Au at cash of USD $1,400 to 1,475 per Oz Au, with AISC of USD $1,625 to 1,750 per Oz Au. Equinox will invest USD $38M of sustaining capital and USD $62M of non-sustaining capital.
  • Sierra Metals Inc., announced Q4 and full year 2021 production results from their Bolivar and Cusi mines in Chihuahua. At Bolivar mine, during Q4, 2021, the company processed 227, 722 tonnes of 0.55% Cu, 9 g/t Ag and 0.11 g/t Au with metallurgical recoveries of 80.79%, 82.34%, and 78.32% respectively to produce 2.23M Lb Cu, 57K Oz Ag, and 634 Oz Au (2.8M Lb CuEq). For the full year 2021, the company processed 1,349,602 tonnes of 0.72% Cu, 15 g/t Ag, and 0.16 g/t Au with metallurgical recoveries of 79.28%, 81.95%, and 68.88% respectively, to produce 24.5M Lb Cu, 551K Oz Ag, and 4,751 Oz Au (35.8M Lb CuEq). At Cusi mine, during Q4, 2021, Sierra Metals processed 84,804 tonnes of 179 g/t Ag, 0.21 g/t Au and 0.4% Pb with metallurgical recoveries of 85.52%, 47.29%, and 80.69% respectively to produce 417K Oz Ag, 272 Oz Au and 581K Lb Pb (465K Oz AgEq).  For the full year 2021, the company processed 295,771 tonnes of 160 g/t Ag, 0.18 g/t Au and 0.3% Pb with metallurgical recoveries of 82.98%, 45.05%, and 81.78% respectively to produce 1.26M Oz Ag, 762 Oz Au and 1.7M Lb Pb (1.38M Oz AgEq).
  • MAG Silver Corp., reported Q4 and full year 2021 production results from its Juanicipio project in Zacatecas. This project is a JV between Fresnillo plc and MAG Silver and reported that during Q4, 2021, 113,950 tonnes of mineralized material were processed to produce 1.6M Oz Ag and 9,385 Oz Au, of which 44% are attributable to MAG Silver (718K Oz Ag and 1,754 Oz Au). For the full year 2021, 251,907 tonnes were processed to produce 3.2M Oz Ag and 6,577 Oz Au, of which 44% are attributable to MAG Silver (1.4M Oz Ag and 2,894 Oz Au).
  • Magna Gold Corp., announced Q4 and full year 2021 production results from its San Francisco Mine in Sonora. During Q4, the company mined 1,456,000 tonnes of 0.44 g/t Au and processed 1,688,000 tonnes of 0.41 g/t Au, to produce 15.5K Oz Au and 5,712 Oz Ag at a cash cost of USD $1,123 per Oz Au. The company sold 16,305 Oz Au and 6,177 Oz Ag. The company reported that 57K Oz Au were produced in the full year 2021 at a cash cost of USD $1,299 per Oz Au. Magna Gold also provided a 2022 production guidance and estimates to produce 65K-71K Oz Au at a cash cost of USD $1250-USD $1,350 per Oz Au.

ON FINANCING

  • No relevant news.

ON RESOURCES AND DEVELOPMENT

  • Capitan Mining Inc., reported results from its RC drilling program on its Capitan project, as well as from chip sampling on the Jesus Maria Silver deposit at its Peñoles project in Durango. Hole 21-CARC-29 encountered a broad mineralized intersection on Capitan structure of 0.34 g/t Au and 2 g/t Ag (0.34 g/t AuEq) over 195.1m, including 0.35 g/t Au and 1 g/t Ag (0.37 g/t AuEq) over 149.4m, including 0.61 g/t Au and 2 g/t Ag (0.63 g/t AuEq) over 38.1m, including 0.92 g/t Au and 2 g/t Ag (0.95 g/t AuEq) over 100.7m, plus a 3m wide intersection of the Jesus Maria Vein which returned 0.26 g/t Au and 103 g/t Ag, 0.1% Pb, and 0.49% Zn.  The mineralized intersection of Jesus Maria vein is significant as it represents a 350m step out down-dip, and to the south of the previous drill-defined extent of the Jesus Maria Silver Deposit. Capitan Mining also reported results from chip sampling conducted on outcrops north of the Jesus Maria Silver Deposit with values up to 410 g/t Ag, 0.9 g/t Au, 1.7% Pb, and 0.7% Zn over 0.6m. Trenching along the new Gully Fault target, between the Capitan Gold Deposit and the Jesus Maria Silver Deposit, has identified a wide zone of mineralization up to 54m wide with 0.14 g/t Au.
  • Silver Tiger Metals Inc., released results from its ongoing drilling program on the Sooy Vein at its El Tigre project, Sonora. Significant mineral intersections were encountered in hole ET-21-287 with 0.74 g/t Au, 60 g/t Ag, 0.01% Cu, 0.03% Pb, and 0.03% Zn (117 g/t AgEq) over 12.4m, including 5.99 g/t Au, 174 g/t Ag, 0.01% Cu, and 0.06% Pb (625 g/t AgEq) over 1.5m, plus 0.06 g/t Au, 273 g/t Ag, 0.21% Cu, 0.7% Pb, and 1% Zn ( g/t AgEq) over 6.6m, including 0.03 g/t Au, 2,393 g/t Ag, 1.81% Cu, 7.5% Pb, and 10% Zn (3,083 g/t AgEq) over 0.5m; and hole ET-21-263 with 0.09 g/t Au, 247 g/t Ag, 0.12% Cu, 0.6% Pb, and 1% Zn (314 g/t AgEq) over 3.1m, including 0.15 g/t Au, 421 g/t Ag, 0.18% Cu, 0.7% Pb, and 2.9% Zn (567 g/t AgEq) over 1m, plus 0.21 g/t Au, 180 g/t Ag, 0.13% Cu, 0.6% Pb, and 0.6% Zn (242 g/t AgEq) over 22.6m, including 1.05 g/t Au, 702g/t Ag, 0.54% Cu, 1.8% Pb, and 1.9% Zn (940 g/t AgEq) over 3m, including 0.06 g/t Au, 740 g/t Ag, 0.56% Cu, 0.3% Pb, and 0.6% Zn (826 g/t AgEq) over 1.5m.
  • SilverCrest Metals Inc., provided an update on the construction of its Las Chispas mine in Sonora. Construction progress was 86.2% complete. During 2021, the company committed 75.2% ($103.6M) of the $137.7M Feasibility Study (FS) capital cost estimate.  Construction of the power line is expected to be complete in Q2, 2022. The company has completed a total of 17.5km of underground development since 2019. Approximately 1.8km of additional development occurred in 2021, beyond the FS life of mine. As at Dec 31, 2021, SilverCrest has cash and cash equivalents of $176.5M and $30M project remaining available under a $120M project financing facility.
  • GoGold Resources Inc., released high grade results from nine holes collared at Mololoa-Tamara area within its Los Ricos North project in Jalisco. The highest grades were encountered in hole LRGM-21-088 with 2.58 g/t Au and 684 g/t Ag (11.70 g/t AuEq or 877 g/t AgEq) over 14.6m, including 9.73 g/t Au and 2,577 g/t Ag (44.1 g/t AuEq or 3,307 g/t AgEq) over 3.8m; and hole LRGM-21-090, with 3.84 g/t Au and 999 g/t Ag (17.15 g/t AuEq or 1,286 g/t AgEq) over 5.3m, including 23.50 g/t Au and 6,310 g/t Ag (107.63 g/t AuEq or 8,072 g/t AgEq) over 0.6m, plus 0.49 g/t Au and 129 g/t Ag (2.22 g/t AuEq or 106 g/t AgEq) over 5.7m, including 3 g/t Au and 876 g/t Ag (14.68 g/t AuEq or 1,101 g/t AgEq) over 0.7m, plus 0.27 g/t Au and 85 g/t Ag (1.40 g/t AuEq or 105 g/t AgEq) over 2.5m.  
  • Southern Silver Exploration Corp., announced drill results and reported a new high grade mineral discovery on the El Sol concession at its Cerro Las Minitas project, Durango. Hole 21SOL-003 intersected 549 g/t Ag, 0.2 g/t Au, 8.6% Pb, and 3.6% Zn (982 g/t AgEq or 24.9% ZnEq) over 3.5m, including 1,760 g/t Ag, 0.9 g/t Au, 0.1% Cu, 23.6% Pb, and 1.2% Zn (2,622 g/t AgEq or 66.5% ZnEq) over 0.8m, plus 129 g/t Ag, 0.6 g/t Au, 3.9% Pb, and 6.2% Zn (547 g/t AgEq or 13.9% ZnEq) over 0.4m. Drill crews have mobilized back to the El Sol concession to complete an additional three core holes.
  • Gatos Silver Inc., provided an update on the resource and reserve estimation process following recent reconciliation work at its Cerro Los Gatos, Chihuahua, and provided 2022 production and cost guidance. “The company concluded that there were errors in the technical report entitled “Los Gatos Project, Chihuahua, Mexico” with an effective date of July 1, 2020, as well as indications that there is an overestimation in the existing resource model. On a preliminary basis, the company estimates a potential reduction of the metal content of Cero Los Gatos mineral reserve ranging from 30% to 50% of the metal content remaining after depletion. The company is working with independent engineering consultants to better understand the magnitude of the overestimation, including conducting a detailed reconciliation of production to previous models and reserve calculation estimates, as well as creating a new Life of Mine (“LOM”) plan. The Company is working expeditiously to complete this reconciliation”. Los Gatos produced in 2021 over 7.6M Oz Ag, 50 M Lb Zn, 40M Lb Pb and 5K Oz Au. It also provided a 2022 production and cost guidance. It estimates to produce 8.5-9M Oz Ag, 49-54M Lb Zn, -M Lb Pb, and 4-4.5K Oz Au at AISC of USD $16.50-18.50/Oz (co-product basis) and USD $13-15/Oz (by product basis).
  • Vizsla Silver Corp., provided a 2021 year end summary of its activities at its flagship Panuco project in Sinaloa. In 2021, the company drilled 99,783m in 319 holes at Panuco, focused on the western portion of the district at both Napoleon and Tajitos targets.  Now, the company has drilled 127,756 m in 449 holes on the property. The most relevant results are at the Napoleon target where drilling has delineated a 1,920m by 300m resource area defined by 148 holes, suggesting an estimated weighted average true width of 3.36m at an average grade of 421 g/t AgEq. High grade remains open along strike and down dip to the south. Vizsla also contracted  ALS Canada to conduct preliminary metallurgical testing on representative composited material sourced from the Napoleon vein, and has initiated data capture of standard geotechnical parameters on all resource/exploration drilling. Vizsla has contracted SRK Consulting to design and lead the preliminary data collection program, with most of the work being carried out by Vizsla geologists.  “Focus for 2022 is exploration and growth. With +120,000 meter fully funded drill program designed to 1) further expand the Project’s maiden resource base on the western portion of the property and 2) test high priority targets on the central and eastern portions of the district, Vizsla aims to identify new centers of mineralization from which to delineate additional resources while simultaneously investigating accelerated development opportunities”.
  • Tarachi Gold Corp., made significant progress in developing its Magistral tailing project in Durango towards a production decision, including an auger drill program to provide assay data for a resource estimate and bulk material for metallurgical testing, which demonstrated that >80% Au recoveries without the need for re-grinding the feed. The company completed a PEA study, including a resource estimate of 1.26 M tonnes of 1.93 g/t Au with approximately 87% of the resource in the measured category, outlining a potentially high-margin, low capex gold mining scenario. Highlights of the PEA include an average annual production of 16K Oz Au plus Cu concentrate by-product, AISC of $705/OZ net of Ag and Cu credits, and after-tax IRR of 85%.
  • Mithril Resources Ltd., provided a Q4, 2021 on activities at its Copalquin project, Durango. Highlights include the delivery of its high-grade maiden JORC indicated and inferred mineral resource estimate of El Refugio-La Soledad in the Copalquin district in Durango, with 2,416,000 tonnes of 4.8 g/t Au and  141 g/t Ag (6.81 g/t AuEq), for a total of 373K Oz Au and 10.95M Oz Ag (529K Oz Au) contained using a cut-off of 2 g/t Au; commencement of a metallurgical and mining study work for El Refugio resource; expansion of targets for  the district scale Copalquin  for 2022 exploration program; and progress on the acquisition of the Copalquin mining district mining concessions via its purchase option agreement to 25% by completing USD $4M direct expenditure. 

ON DEALS AND CORPORATE ISSUES

  • Bear Creek Mining Corporation provided an update of the acquisition from Equinox Gold Corp., of the Mercedes mine, located in Sonora. TSX has approved the acquisition as well as of for (i) the company´s gold purchase agreement with Sandstorm Gold Ltd. “Sandstorm will provide the company with USD$37.5M and in exchange Bear Creek will sell to Sandstorm 600 ounces of refined gold per month for 42 months (a total of 25,200 ounces) at a price equal to 7.5% of the spot gold price at the time of delivery and thereafter the company will sell to Sandstorm 4.4% of gold produced by Mercedes at a price equal to 25% of the spot price at the time of delivery; and (ii) the private placement by the Company to Sandstorm of a 6%, three-year Convertible Debentures having a principal amount of USD $22.5M. Proceeds from the Gold Purchase Agreement and the Convertible Debentures will be applied to partially fund the purchase price of the acquisition”.

ON SOCIAL RESPONSIBILITY

  • Minera Penmont (Fresnillo plc) carried out in collaboration with the Urban Development and Ecology area of ​​the Caborca ​​City Council, the first Reforestation Day 2022. During the day, 400 regional trees of the Mezquite and Neem species, as well as a hose and accessories for their installation, were delivered to representatives of 13 schools in Pitiquito and Caborca to inform about the importance of reforestation and of having an environmental culture for the benefit of all the inhabitants.
  • Four educational institutions that Grupo México supports in the Mexican Republic have obtained results above the national average in the most recent evaluations carried out by the Ministry of Public Education. In addition, education also focuses on the teaching of English as a second language
  • Minera Media Luna (Torex Gold) invested over MXP $7M in seven public works in four communities. These works in the towns of Atzcala, Real del Limón, La Fundición and Nuevo Balsas are part of the Minera Media Luna program as a Socially Responsible Company, whose objective is to take advantage of the money in infrastructure works that allow social development.
  • Minera San Xavier S.A de C.V. (Cerro San Pedro, San Luis Potosi), informed that, as of January 2022, it has made significant progress in the execution of its biophysical and social Closure Plan, which has been Responsible, Inclusive and Participatory.

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

On the picture above, a quartz breccia cemented by tourmaline from a prospect in Chihuahua, Mexico.  Photo by Miguel A Heredia.

The Mining and Exploration News in Mexico: Highlights on the Fifth Week of December, 2021. 

Hydrothermal breccia

By Miguel A Heredia

Happy New Year to all of our readers! I want to wish you all the very best in this coming 2022, especially good health, prosperity and a lot of fun!

With deep regret I knew early this week about the sensitive and unexpectedly passing of David Jones at his home in Tucson, Arizona. David was a well-respected geologist who worked for many years in Mexico making many friends. David will be remembered for being responsible of multiple discoveries in Mexico such as Los Filos in the Guerrero Gold Belt, and Switchback vein system at the El Aguila project in Oaxaca among others. “Descansa en paz amigo!”

During the 52nd and last week of the year (December 27th, 2021 to January 2nd, 2022), at least 13 press releases were announced by companies working in Mexico, and 2 news published by the media, with four reporting resources and developments of their properties, three disclosing deals and corporate issues, three informing on exploration results, three announcing financial issues, one commenting on Mexican issues, and one discussing social issues.  ON MEXICO ISSUES, Mexico will lose potential investments if it does not increase its level of certainty in the mining industry, warned Jody Kuzenko, CEO of the Canadian company Torex Gold Resources. ON EXPLORATION, In Sonora, Silver Spruce announced that it is proceeding with the preparation of an Informe Preventivo for trenching and drilling its Jackie property. In Durango, Southern Empire received preliminary results from a geophysical survey conducted at its Pedro Gold project. In Guerrero, Pantera Silver commenced a drilling program at its Nuevo Taxco Silver project.  ON MINING, no relevant news.  ON FINANCING, Altaley executed a loan agreement with Sail Natural for USD $5M (Tahuehueto project, Durango). Prismo completed the first closing of a non-brokered private placement for total gross proceeds of $1M (Palos Verdes project, Sinaloa). SilverCrest completed the third drawdown of USD $30M on its previously announced USD $120M Project Financing Facility (Las Chispas, Sonora). ON RESOURCES AND DEVELOPMENT, Fabled released results from its ongoing drilling program at its Santa Maria project, Chihuahua. Fresnillo and its JV partner Mag Silver provided a commissioning update on its Juanicipio project in Fresnillo, Zacatecas. GoGold provided an outlook and deliverables for 2022 (Los Ricos North and South projects, Jalisco). Silver Tiger provided a review of its 2021 activities at its El Tigre project in Sonora.  ON DEALS AND CORPORATE ISSUES, Gold79 retained Dig Media to provide investor relation services for the company (Taviche project, Oaxaca). Great Panther announced board changes (Topia mine, Durango). Minaurum announced the passing of David Jones. ON SOCIAL RESPONSIBILITY, Compañía Minera Cuzcatlán (Fortuna Silver) reported that its operation does not generate a negative impact on the water resource located in communities surrounding its San Jose mine in Oaxaca.

ON MEXICO ISSUE

  • Mexico will lose potential investments if it does not increase its level of certainty in the mining industry, warned Jody Kuzenko, CEO of the Canadian company Torex Gold Resources. Mexico’s mining industry has slowed because the current administration of President Andrés Manuel López Obrador has suspended the issuance of new mining concessions; likewise, companies in the sector are increasingly forced to deal with crime by hiring private security companies. Recently, the federal government proposed a constitutional reform initiative for the Mexican electricity industry in which it seeks for the Federal Electricity Commission (CFE) to regain a leading role in the sector, establishing that the company will generate at least 54% of consumption national electric. Torex Gold is the third largest gold producing company in Mexico, with 430,480 Oz Au in 2020; its operations are carried out in Guerrero, where Limón-Guajes is the second most important mining unit in the country in terms of gold production. In that same entity, the company plans to invest more than USD $500M to start operations at its Media Luna mining unit in 2024, with a production of 179K Oz Au, 21K tonnes of Cu and 1.5M Oz Ag, although these estimates will be updated with a new feasibility study. Since Torex Gold is growing in Guerrero, it will need more electrical power. “Reliability is required, that the power is not interrupted while you are working; the price must be competitive, and investors are looking for a wide margin in our process of decarbonization and reducing greenhouse gases”.

ON EXPLORATION

  • Silver Spruce Resources Inc., announced that it is proceeding with the preparation of an Informe Preventivo to be filed at the Mexican Government Environmental Authority (SEMARNAT) for conducting trenching and drilling at its Jackie property in Sonora. The environmental permit will include 13 trenches and 36 drill pads. The SEMARNAT permit for the Informe Preventivo is expected within four to six weeks of submission.”
  • Southern Empire Resources Corp., received preliminary high-resolution, airborne magnetic and radiometric geophysical data covering its Pedro Gold Project in Durango. In December 2021, Terraquest Ltd. of Markham, Ontario, collected 393.2 line-kilometers of airborne geophysical data on flight lines that were flown at azimuth 060 / 240 with 50m spacings. This data has been delivered to Condor Consulting, Inc. of Lakewood, Colorado; experts in geophysical processing, analysis and inversion modeling. “The results of our preliminary airborne magnetic data provide some strong clues about the structural setting and underlying ‘plumbing system’ of the HP Breccia gold zone. Together with the regional government magnetics, we see evidence for a deeper intrusive body that could be linked to the hydrothermal fluids and related potential for epithermal vein systems that are the target of Southern Empire’s upcoming drill campaign”. The company has mobilized a diamond drill rig to the Pedro Property and is scheduled to start a 2,000m, nine-hole core drill program in January of 2022.
  • Pantera Silver Corp., commenced a drilling program at its Nuevo Taxco Silver project in Guerrero. The first phase of this maiden exploration drill program will consists of up to 2,000m with holes of approximately 50-150m in depth.

ON MINING

  • No relevant news.

ON FINANCING

  • Altaley Mining Corporation executed a loan agreement with Sail Natural Resources LP for USD $5M. Net proceeds will be used to fund the final costs of construction and working capital at its Tahuehueto project in Durango. The loan agreement is for four years with an interest of 13.5% where Altaley shall make four quarterly payments of interest only on the outstanding amount of the loan commencing on March 10, 2022, and ending on December 10, 2022.
  • Prismo Metals Inc., completed the first closing of a non-brokered private placement for total gross proceeds of $1M (Palos Verdes project, Sinaloa). The company expects to complete a second closing for $1M in the first half of January, 2022. “The Company will use expected $2M gross proceeds from the Units to complete a 4,000m drilling campaign on its Palos Verdes property (estimated at $1M), conduct exploration on its Los Pavitos property, Sonora with a view of identifying drilling targets (estimated at $400K), the costs of the offering (estimated at $125K which includes payment of finder’s fees) and for general working capital”.
  • SilverCrest Metals Inc., completed the third drawdown of USD $30M on its previously announced USD $120M Project Financing Facility with an affiliate of RK Mine Finance. Funds will be used towards the continued construction of the Company’s Las Chispas Project located in Sonora, with a targeted completion in Q2, 2022. 

ON RESOURCES AND DEVELOPMENT

  • Fabled Silver Gold Corp., released results from its ongoing drilling program at its Santa Maria project, Chihuahua. The most significant drill intercept was obtained in hole SM20-45, which encountered a mined-out void zone at the target depth, but before reaching the target depth it intersected the Santa Maria footwall zone with 0.16 g/t Au 34 g/t Ag, 0.01% Pb, and 0.04% Zn (42.5 g/t AgEq) over 6.40m, including 0.23 g/t Au, 38 g/t Ag, 0.01% Pb, and 0.06% Zn (50 g/t AgEq) over 0.60m, and including 0.19 g/t Au, 55 g/t Ag, 0.01% Pb, and 0.04% Zn (68 g/t AgEq) over 1.7m.
  • Fresnillo plc and its JV partner Mag Silver Corp., provided a commissioning update on its Juanicipio project in Fresnillo, Zacatecas. Although the Juanicipio project team delivered the project for plan commissioning on schedule, the “Comisión Federal de Electricidad” (CFE), the state-owned electrical company, notified Fresnillo plc, the Juanicipio Project operator, that approval to complete the tie-in to the national power grid cannot yet be granted and the mill commissioning timeline will therefore be extended by approximately six months. Stoping and mineralized mine development at Juanicipio will continue and will make available any unused plant capacity at its Minera Fresnillo and Minera Saucito operations to process mineralized material produced at Juanicipio, and if possible matching commissioning and ramp up tonnages that were previously expected. The effect on cashflow generation from Juanicipio therefore will also be mitigated while CFE approvals are pending.
  • GoGold Resources Inc., provided an outlook and deliverables for 2022. At Los Ricos North, the company plans to conduct an aggressive drilling and exploration campaign on El Favor East and Gran Cabrera areas to increase the mineral resource estimate at the property. At Los Ricos South, GoGold will initiate a drilling program on the Jamaica structure since this mineralized zone offers the potential for an additional bulk tonnage target in Los Ricos South. The company also plans to initiate a PFS anticipated to be completed prior to the end of 2022.
  • Silver Tiger Metals Inc., provided a review of its 2021 activities at its El Tigre project in Sonora. The company reported wide high grade silver intercepts in quartz veins within a black shale horizon on the Sooy, Benjamin and Seitz Kelly Veins. Highlights include hole ET-20-202 in the Sooy Vein with 382 g/t AgEq over 22.2m, including 668 g/t AgEq over 11.75m; hole ET-21-204 in the Benjamin Vein with 519 g/t AgEq over 14.2m, including 1,010 g/t AgEq over 5.6m; and hole ET-21-264 in the Seitz Kelly Vein with 2,608 g/t AgEq over 17.5m, including 82,873 g/t AgEq over 0.5m. It also completed a $23M bought deal institutional financing, and disclosed 2021 Environmental, Social, & Governance (ESG) strategy roadmap.

ON DEALS AND CORPORATE ISSUES

  • Gold79 Mines Ltd., retained Dig Media Inc. dba Investing News Network, to provide investor relation services for the company. Under the terms of the contract for this advertising and investor awareness campaign, Dig Media will provide various digital media advertising and related services to increase public awareness of the company. (Taviche project, Oaxaca).
  • Great Panther Mining Limited announced the resignation of its Director and Chair of the Board of Directors, and the appointment of one of its independent Directors as the new Chair of the company (Topia mine, Durango).
  • Minaurum Gold Inc., announced the sensitive and unexpectedly passing of David Jones early this week at its home in Tucson, Arizona. “Descansa en paz amigo”.

ON SOCIAL RESPONSIBILITY

  • Compañía Minera Cuzcatlán (Fortuna Silver Mines Inc.) reported that its operation does not generate a negative impact on the water resource located in communities surrounding its San Jose mine in Oaxaca. The company monitors quarterly the water quality in surface and underground bodies. It also stated that since the beginning of its operation, it does not compete for this resource with neighboring communities, nor does it use the water that was monitored for its mining activities. The water samples are required every six months by environmental regulations, but to generate greater certainty and confidence among the population, the company proactively performs them every three months. The foregoing, through the hiring of external and certified laboratories, whose procedures are endorsed by both the National Water Commission (CONAGUA), as well as by the Federal Attorney for Environmental Protection (PROFEPA) and whose results comply with the NOM-OO1 of the Ministry of the Environment and Natural Resources (SEMARNAT).

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

On the picture above, a hydrothermal breccia from a low sulphidation epithermal vein system in a project in Durango, Mexico.  Photo by Miguel A Heredia.

The Mining and Exploration News in Mexico: Highlights on the First Week of December, 2021. 

Quartz vein with massive chalcopyrite

By Miguel A Heredia

During the 48th week of the year (November 29th to December 5th, 2021), at least 24 press releases were announced by companies working in Mexico, and 3 news published by the media, with seven announcing financial issues, five reporting resources and developments of their properties, five disclosing deals and corporate issues, four informing on exploration results, three commenting on Mexican issues, and three communicating production and financial results.  ON MEXICO ISSUES, AMLO reaffirmed this week his foolish and unfortunate policy of not granting more mining concessions in Mexico. President Andrés Manuel López Obrador offered to meet the request of residents of San José del Progreso and collaborators of Compañía Minera Cuzcatlán, who asked him to avoid the closure of the San José mining unit, located in that Oaxacan municipality. The current government has stopped the issuance of mining concessions and investment in Mexico. ON EXPLORATION, In Sonora, Ranchero Gold provided an update of its ongoing drilling program conducted at its Maíz Azul project. In Chihuahua, Mammoth received from SEMARNAT a permit to expand its drilling program at its Tenoriba project. In Sinaloa, Kootenay announced drill results from its Copalito project. In Durango, Silverton signed a surface agreement for its Pluton Silver-Zinc project.  ON MINING, Americas Gold and Silver announced the re-opening of its Cosalá mine operation in Sinaloa. Santacruz reported Q3, 2021 production and financial results from their Zimapan and Rosario mines in Hidalgo and San Luis Potosi respectively. Guanajuato Silver provided a production update on its El Cubo mine, Guanajuato.  ON FINANCING, Guanajuato Silver closed the first tranche of its non-brokered private placement offering of up to 16M units at a price of CAD $0.55 per unit (El Cubo mine, Guanajuato). Fabled renewed its agreement with Agora Internet to provide online advertising, marketing, and branding services and wishes to issue 519,007 common shares in respect of the settlement, and engaged Hybrid Financial to provide marketing services (Santa Maria project, Chihuahua). First Majestic announced that it will issue USD $200M aggregate principal amount of Convertible Senior Notes or USD $230M aggregate principal amount if the over-allotment option is exercised in full (San Dimas mine, Durango). Guanajuato Silver received USD $750K from the sale of 90 tonnes of bulk Ag-Au concentrate from El Cubo mine in Guanajuato, and anticipates receiving a payment of approximately USD $1.3M for the sale of approximately 175 tonnes of additional Ag-Au concentrate on or about December 3, 2021. Orogen announced initial production at the Ermitaño deposit in Sonora where the company holds a 2% net smelter return. VVC announced an arrangement with Stockhouse Publishing to assists VVC with general market outreach and investor awareness (Gloria Copper project, Chihuahua). ON RESOURCES AND DEVELOPMENT, Discovery reported a Preliminary Economic Assessment (PEA) on its Cordero project, Chihuahua. Endeavour released high grade results from its ongoing drilling program at their Guanacevi and Bolañitos mines in Durango and Guanajuato respectively. Silver Tiger reported a wide high grade drill intersection on the Benjamin Vein at its El Tigre project, Sonora. Fabled released results from hole SM0-42 collared at its Santa Maria project, Chihuahua. GR Silver announced the discovery of a gold-silver rich mineralized zone during the initial reconnaissance drilling at Loma Dorada target within its Plomosas project in Sinaloa.    ON DEALS AND CORPORATE ISSUES, Almadex announced the appointment of two members to its Board of Directors and the retirement of one Director after many years of valued service (El Chato project, Puebla). Capstone and Mantos Copper entered into a definitive agreement to combine business to create Capstone Copper (Cozamin mine, Zacatecas). Heliostar announced the appointment of a new member to its Board of Directors (Cumaro project, Sonora). Monumental Minerals announced the appointment of an advisory board to assist the company with the exploration and drill target definition of its Jemi rare earth elements project in Coahuila. ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUE

  • AMLO reaffirmed this week his foolish and unfortunate policy of not granting more mining concessions in Mexico. He declared that mining companies were speculating in the financial market. López Obrador asserted that the existing mining concessions will be respected; however, his government will no longer give more, as many companies “cheated” and have not carried out exploitation tasks.
  • President Andrés Manuel López Obrador offered to meet the request of residents of San José del Progreso and collaborators of Compañía Minera Cuzcatlán, who asked him to avoid the closure of the San José mining unit, located in that Oaxacan municipality. The president was asked to avoid the loss of more than 1,200 direct jobs and around 8,000 indirect ones.
  • The current government has stopped the issuance of mining concessions and investment in Mexico. Parallel to the policy of null concessions, the president has presented a bill that intends to reserve strategic minerals such as lithium only for the State, denying any concession for their exploration, production or commercialization. Both their decisions not to grant a single concession in three years of government “and the promise not to do so in the entire six-year term”and to reserve strategic minerals for the State have been strongly criticized by specialists and representatives of the mining industry, to the point of warning that the future of the country is being“mortgaged.

ON EXPLORATION

  • Ranchero Gold Corp., provided an update of its ongoing drilling program conducted at its Maíz Azul project, located 3.5km east of Alamos Gold´s Mulatos mine in Sonora. To date, eight holes have been drilled totalling 1,245m, which represents 42% of the Phase 1 drill program which plans to test the La Colmena, La Cascada, and X-structure targets. 175 samples have been submitted to lab and results are expected to arrive in Q1, 2022.
  • Mammoth Resources Corp., received from SEMARNAT a permit to expand its drilling program at its Tenoriba project in Chihuahua. SEMARNAT approved the company´s application for up to 182 additional drill sites and covers the entire 6 km Au-Ag mineralization at the Tenoriba project.
  • Kootenay Silver Inc., announced drill results from Agua, 5 Señores, and Chiva Veins within its Copalito project in Sinaloa. Highlights at Agua Vein include hole BDH-20-055 with 2 g/t Au, 125 g/t Ag and 0.9% combined Pb+Zn (276 g/t AgEq) over 23m, including 9.26 g/t Au, 28 g/t Ag, and 0.6% combined Pb+Zn (643 g/t AgEq) over 5m, including 21.1 g/t Au, 29 g/t Ag, and 0.3% combined Pb+Zn (1,409 g/t AgEq) over 0.65m, plus 0.82 g/t Au, 587 g/t Ag, and 1.6% combined Pb+Zn (676 g/t AgEq) over 3m; hole BDH-21-056 with 0.22 g/t Au, 101 g/t Ag, and 0.9% combined Pb+Zn (135 g/t AgEq) over 21m, including 0.28 g/t Au, 163 g/t Ag, and 0.8% combined Pb+Zn (199 g/t AgEq) over 7m, including 0.48 g/t Au, 440 g/t Ag and 0.9% combined Pb+Zn (492 g/t AgEq) over 1.5m; and hole CDH-21-80 with 0.42 g/t Au, 63 g/t Ag, and 4.8% combined Pb+Zn (199 g/t AgEq) over 1.84m, including 0.69 g/t Au, 133 g/t Ag, and 11% combined Pb+Zn (423 g/t AgEq) over 0.43m. Highlights at 5 Señores Vein include hole BDH-20-51 with 2.95 g/t Au, 98 g/t Ag, and 0.3% combined Pb+Zn (290 g/t AgEq) over 1.4m; and hole BDH-20-052 with 0.23 g/t Au, 14 g/t Ag, and 0.6% combined Pb+Zn (34 g/t AgEq) over 3.3m, including 1.28 g/t Au, 61 g/t Ag, and 3.3% combined Pb+Zn (174 g/t AgEq) over 0.48m. Highlight on Chiva Vein include hole BDH-21-057 with 0.06 g/t Au, 106 g/t Ag, and 0.3% combined Pb+Zn (118 g/t AgEq) over 6.33m, including 0.23 g/t Au, 513 g/t Ag, and 0.8% combined Pb+Zn (546 g/t AgEq) over 0.82m; hole BDH-21-058 with 0.07 g/t Au, 41 g/t Ag, and 0.1% combined Pb+Zn (48 g/t AgEq) over 12m, including 0.5 g/t Au, 300 g/t Ag, and 1.4% combined Pb+Zn (1,364 g/t AgEq) over 0.35m; and hole BDH-21-063 with 0.92 g/t Au, 86 g/t Ag, and 5.5% combined Pb+Zn (269 g/t AgEq) over 1.82m, including 4.49 g/t Au, 453 g/t Ag, and 2.7% combined Pb+Zn (1,344 g/t AgEq) over 0.32m.
  • Silverton Metals Corp., signed a surface agreement for three years for its Pluton Silver-Zinc project with the Comisariado Ejidal of Ejido Mapimi in Durango State. The agreement provides access to the land for surface exploration work, including diamond drilling and use of a core storage facility.

ON MINING

  • Americas Gold and Silver Corporation, announced the re-opening of its Cosalá mine operation in Sinaloa. The Los Braceros plant has returned to nameplate production with a steady source of feed from a combination of existing stockpiled ore and new production from the San Rafael mine.
  • Santacruz Silver Mining Ltd., reported Q3, 2021 production and financial results from their Zimapan and Rosario mines in Hidalgo and San Luis Potosi respectively. At Zimapan mine, Hidalgo, the company milled 186,642 tonnes to produce 867.2K Oz AgEq, and sold 829.2K Oz AgEq. Cash costs per ton and per Oz AgEq produced were USD $53.88 and USD $17.72 respectively. AISC was USD $22.81 per Oz Ag Eq. The company reported revenue of USD $14.4M and a gross profit of USD $3.93M. At Rosario mine, San Luis Potosi, the company milled 2,306 tonnes to produce 5,698 Oz AgEq and sold 10,765 Oz AgEq. Cash costs per ton and per Oz AgEq produced were USD $173.04 and USD $42.81 respectively. AISC was USD $22.47 per Oz AgEq produced. The company reported revenue for USD $182K and gross profit of (272K).
  • Guanajuato Silver Company Ltd., provided a production update on its El Cubo mine, Guanajuato. The company has mined since October 15, 2021 450 tonnes of ore per day from El Cubo mine and is processing an average of 1,000 tonnes per day. It expects the plant to operate for 22 to 24 days for an average monthly operating rate of 22,500 tonnes for the next 6 months.

ON FINANCING

  • Guanajuato Silver Company Ltd., closed the first tranche of its non-brokered private placement offering of up to 16M units at a price of CAD $0.55 per unit. The net proceeds from the offering will be used to fund the ongoing exploration, development, and expansion of the Company’s El Cubo mine and mill complex and El Pinguico silver and gold project, and for general corporate and working capital purposes.
  • Fabled Silver Gold Corp., renewed its agreement with Agora Internet Relations to provide online advertising, marketing, and branding services and wishes to issue 519,007 common shares in respect of the settlement. It also engaged Hybrid Financial Ltd., to provide marketing services. Hybrid has been engaged for an initial period of 6 months, starting on December 1, 2021 and will be paid a monthly fee of $22,500 plus payable taxes (Santa Maria project, Chihuahua).
  • First Majestic Silver Corp., announced that it will issue USD $200M aggregate principal amount of Convertible Senior Notes or USD $230M aggregate principal amount if the over-allotment option is exercised in full. The company intends to use approximately USD $164.9M of the net proceeds of the offering to repurchase, in separate privately negotiated transactions, approximately USD $125.2M aggregate principal amount of its outstanding 1.875% convertible senior notes. The company intends to use the remainder of the net proceeds from the offering for general corporate purposes, including strategic opportunities (San Dimas mine, Durango).
  • Guanajuato Silver Company Ltd., received USD $750K from the sale of 90 tonnes of bulk Ag-Au concentrate grading approximately 220 Oz Ag per tonne and 2.2 Oz Au per tonne from El Cubo mine in Guanajuato, and anticipates receiving a payment of approximately USD $1.3M for the sale of approximately 175 tonnes of additional Ag-Au concentrate at similar grades on or about December 3, 2021.
  • Orogen Royalties Inc., announced initial production at the Ermitaño deposit in Sonora where the company holds a 2% net smelter return. The first doré gold-silver pour occurred November 11, 2021 and commercial production is expected in Q1 2022.
  • VVC Exploration Corporation announced an arrangement with Stockhouse Publishing to assists VVC with general market outreach and investor awareness. At the time, the company issued to Stockhouse 157,900 common shares of VVC and a $60K Note to be converted into shares in four tranches over a year. With the approval of TSX Venture Exchange, one quarter of the note ($15K) will now converted, as part of the second tranche, to 136,365 shares at a price of $0.11 per share, being yesterday´s market price discounted by 25%. The next share issuance will occur in three months (Gloria Copper project, Chihuahua).

ON RESOURCES AND DEVELOPMENT

  • Discovery Silver Corp., reported a Preliminary Economic Assessment (PEA) on its Cordero project, Chihuahua. The reports indicates that the ultimate pit contains 719M tonnes consisting of 228M tonnes of mill feed and 491M tonnes of waste for an average strip ratio of 2.2:1 Highlights include a Base Case after-tax NPV 5% of USD $1,160M and IRR of 38% assuming prices of USD $22 / Oz Ag, USD $1,600/ Oz Au, USD 1/Lb Pb, and USD $1.0/ Lb Zn; and a Upside Case after-tax NPV 5% of USD $1,889M and IRR of 55%, assuming prices of USD $27.5/Oz Ag, USD $1,880/Oz Au,  USD $1.1/Lb Pb, and USD $1.45/Lb Zn; 16-year mine life with an average annual production of 26M Oz AgEq at an AISC of USD $12.35 / Oz AgEq; initial development CAPEX of USD $368M post-tax payback of 2 years for Base Case and 1.4 years for Upside Case; 99% of tonnes processed in the PEA mine are in the Measured + Indicated category; and Ag represents > 60% of the net smelter return in the first five years of the mine life and >50% of the net smelter return over the life of mine.
  • Endeavour Silver Corp., released high grade results from its ongoing drilling program at their Guanacevi and Bolañitos mines in Durango and Guanajuato respectively. At Guanacevi mine, highlights include hole UCM-67 with 1.97 g/t Au and 1,254 g/t Ag (1,412 g/t AgEq) over a true width (TW) of 3.22m, including 3.6 g/t Au and 2,690 g/t Ag (2,978 g/t AgEq) over a TW of 0.2m, extending the El Curso orebody along strike; and hole SCSU-11 with 4.36 g/t Au, 1,450 g/t Ag (1,798 g/t AgEq) over a TW of 3.18m, including 7.97 g/t Au and 4,568 g/t Ag (5,206 g/t AgEq) over 0.31m, extending the Santa Cruz South orebody to depth. At Bolañitos mine, Guanajuato, highlights include hole BS-04 with 8.08 g/t Au and 151 g/t Ag (797 g/t AgEq) over a TW of 1.67m, including 89.6 g/t Au and 88 g/t Ag (8,046 g/t AgEq) over a TW of 0.08m on a new discovery, the Tepetateras vein, south of the current workings; and hole BS-03 with 1.26 g/t Au and 241 g/t Ag (342 g/t AgEq) over 0.96m, on the Lulu vein, south of the current workings.
  • Silver Tiger Metals Inc., reported a wide high grade drill intersection on the Benjamin Vein at its El Tigre project in Sonora. Hole ET-21-272 encountered 0.35 g/t Au, 388 g/t Ag, 0.14% Cu, 2.9% Pb, and 6.2% Zn (701 g/t AgEq) over 23.1m, including 0.5 g/t Au, 587 g/t Ag, 0.21% Cu, 4.3% Pb, and 9.2% Zn (1,051 g/t AgEq) over 15.1m, including 0.52 g/t Au, 1,642 g/t Ag, 0.58% Cu, 11.9% Pb, and 25.2% Zn (2,855 g/t AgEq) over 5.1m, including 0.37 g/t Au, 2,877 g/t Ag, 1.05% Cu, 14.6% Pb, and 30.8% Zn (4,375 g/t AgEq) over 2.6m.
  • Fabled Silver Gold Corp., released results from hole SM0-42 collared at its Santa Maria project, Chihuahua. This hole was designed to fill in a drill poor gap just to the west of the current resources. The hole intersected six gold bearing zones. Highlights are 0.49 g/t Au, 117 g/t Ag, 0.05% Pb, 0.1% Zn (143 g/t AgEq) over 3.70m, including 0.91 g/t Au, 211 g/t Ag, 0.1% Pb, 0.1% Zn, and 0.01% Cu (258 g/t AgEq) over 1.20m, plus 0.43 g/t Au, 227 g/t Ag, 0.1% Pb, 0.3% Zn and 0.01% Cu (249 g/t AgEq) over 1.71m.
  • GR Silver Mining Ltd., announced the discovery of a gold-silver rich mineralized zone during the initial reconnaissance drilling at Loma Dorada target within its Plomosas project in Sinaloa. Hole LDSP21-007 encountered 5.23 g/t Au and 166 g/t Ag over 1m. “The Loma Dorada target is currently the subject of reconnaissance drilling, testing a new geological model of NW trending, Au-Ag rich veining – a possible extension 1.2 km along strike from La Colorada”.

ON DEALS AND CORPORATE ISSUES

  • Almadex Minerals Ltd., announced the appointment of two members to its Board of Directors and the retirement of one Director after many years of valued service. The company also granted stock options to officers, employees and directors to purchase an aggregate of 1,075,000 common shares at a price of $0.31 per share which expires on December 5, 2023 (El Chato project, Puebla).
  • Capstone Mining Corp. and Mantos Copper Limited entered into a definitive agreement to combine business to create Capstone Copper Corp., a premier copper producer with transformational near-term growth. Upon completion of the transaction, former Capstone and Mantos shareholders will collectively own 60.75% and 39.25% of Capstone Copper, respectively, on a fully-diluted share basis. (Cozamin mine, Zacatecas).
  • Heliostar Metals Limited announced the appointment of a new member to its Board of Directors (Cumaro project, Sonora).
  • Monumental Minerals Corp., announced the appointment of an advisory board to assist the company with the exploration and drill target definition of its Jemi rare earth elements project in Coahuila. Monumental also appointed a new Director to its Board. The Company also granted 275,000 incentive stock options to advisors at a price of $0.50 per common share for a period of five years.

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 piece of core showing a quartz vein with massive chalcopyrite from an epithermal quartz vein system in a current producing mine in Zacatecas, Mexico.  Photo by Miguel A Heredia.

The Mining and Exploration News in Mexico: Highlights on the Second Week of November, 2021

By Jorge Cirett

During the 45th week of the year (November 8th to November 14th, 2021), at least 22 press releases were announced by companies working in Mexico. To note, seven companies posted exploration advances on their properties, five released Q3 reports, two on financing related news and one on marketing services contracting, while five companies posted on project development or resource definition and one more on a project acquisition. ON MEXICO ISSUES, no relevant news. ON EXPLORATION, In Sonora, Starcore International is exploring its Tecouitla and Meztli 4 concessions; Colibri Resources started RC drilling at Evelyn; Minaurum Gold informed on drilling at Alamos Silver; Silver Tiger reported high-grade results from drilling at El Tigre; Tocvan Ventures commenced field operations at Pilar. In Durango, Canasil Resources is to resume drilling at Nora.   ON MINING, Gatos Silver, Avino Silver, Pan American Silver, Fortuna Silver and Endeavour Silver (all silver companies) presented their Q3 2021 reports. ON FINANCING, Candelaria Mining contracted the service of two marketing companies. Heliostar Metals closed a financing round for $4 M. Great Panther announced the underwriting of $20 M in shares. ON RESOURCES AND DEVELOPMENT, Fabled Silver released results from underground drilling at Santa Maria, Chihuahua. GoGold Resources reported drilling results from Los Ricos North in Jalisco. Pan American Silver disclosed further impressive drilling results from La Colorada Skarn in Zacatecas. Golden Minerals released RC drilling results from Rodeo, Durango. Osisko Development disclosed drilling results from the Sapuchi deposit at San Antonio in Sonora.   ON DEALS AND CORPORATE ISSUES, Millrock Resources singed an agreement with Mine Discovery Fund on El Batamote property in Sonora. ON SOCIAL RESPONSIBILITY, Coanzamex, Industrias Peñoles and Fresnillo PLC informed on its support for communities, science and education.

ON MEXICO ISSUES

  • No Relevant News.

ON EXPLORATION

  • Starcore International Mines Ltd. is to start drilling at it “Meztli 4” and “Tecouilta” mining concessions in Sonora. The first stage drilling is to explore five veins that have more than eight months of reconnaissance work and 2,000 surface samples. Starcore holds 14,451 hectares in the area, which includes the Creston molybdenum deposit. The veins range from 0.55 to 1.07 m in width at the surface, with grades of up to 4.19 gpt Au and 250 gpt Ag.
  • Monarca Minerals Inc. released results from reverse circulation drilling at San Jose, in Chihuahua. “Large volumes of skarn and altered intrusive rocks have been intersected in the drilling …….. Mineralization is hosted in both exoskarn and endoskarn and in silicified intrusive rocks, which are locally potassically altered”. Some of the highlighted hole-length intervals comprise 3 m @ 4.07 gpt Au, 6 gpt Ag, 0.2% Pb, 0.5% Zn; 1.5 m @ 79 gpt Ag, 0.34% cu, 0.4% Pb, 1.5% Zn; 6.1 m @ 0.36 gpt Au, 3 gpt Ag, 1% Cu; 3 m @ 3.11 gpt Au, 32 gpt Ag, 0.13 % Cu; 1.5 m @ 0.92 gpt Au, 2 gpt Ag; 4.6 m @ 0.13 gpt Au, 0.33% Cu.
  • Colibri Resources Corp. started reverse circulation drilling at its Evelyn project in Sonora. The first 5,000 m phase of drilling will take approximately two months, focusing on targets generated by high-grade surface and trench sample results coincident with magnetic gradients and lineaments and mapped structures.
  • Minaurum Gold Inc. informed on drilling results at its Alamos Silver project in Sonora. “. Drilling at the Alessandra vein recently discovered a blind Ag-Cu-Pb-Zn skarn that is open in all directions while ongoing drilling at Europa-Guadalupe continues to delineate a high-grade mineralized vein system which is now been extended by 40% to at least 800 meters in length. Europa-Guadalupe remains open at depth and along strike”. Highlighted core-length results comprise 1.60 m @ 174 gpt Ag, 1.3% Cu; 1.20 m @ 0.3% Pb, 2.4% Zn; 5.05 m @ 106 gpt Ag, 0.2% Pb, 0.5% Zn; 2.25 m @ 228 gpt Ag, 0.1 gpt Au, 0.17% Cu, 0.5% Pb, 1.3% Zn; 1.55 m @ 139 gpt Ag, 0.13% Cu, 0.1% Pb, 0.2% Zn; 1.65 m @ 240 gpt Ag, 0.4% Cu, 0.5% Pb, 0.6% Zn; 1.10 m @ 1.2% Pb, 7.6% Zn; 0.90 m @ 57 gpt Ag, 0.24 gpt Au, 1.0% Pb, 3.0% Zn; 3.85 m @ 57 gpt Ag, 0.56 gpt Au, 0.8% Pb, 2.1% Zn; 11.05 m @ 120 gpt Ag, 0.25 gpt Au, 1.12% Cu, 0.4% Pb, 1.8% Zn; 6.40 m @ 147 gpt Ag, 0.13% Cu, 0.3% Pb, 0.6% Zn; 0.95 m @ 435 gpt Ag, 0.35 gpt Au, 0.43% Cu, 1.4% Pb, 3.6% Zn; 0.70 m @ 513 gpt Ag, 0.26% Cu, 0.2% Pb, 0.3% Zn; 1.50 m @ 1.1 gpt Au; 2.85 m @ 91 gpt Ag, 0.24% Cu, 0.3% Pb, 0.5% Zn; 21.85 m @ 62 gpt Ag, 0.14% Cu, 0.2% Pb, 0.4% Zn.
  • Silver Tiger Metals Inc. reported high-grade results from drilling on the Seitz Kelley vein at El Tigre project in Sonora. Highlighted core-length intervals comprise 17.5 m @ 31.53 gpt Au, 139 gpt Ag, 0.11% Cu, 0.9% Pb, 2.2% Zn, including 1.6 m @ 343.12 gpt Au, 238 gpt Ag, 0.1% Cu, 1.6% Pb, 2.6% Zn (which includes 0.5 m @ 1,097.8 gpt Au, 255 gpt Ag), and 7.1 m @ 0.21 gpt Au, 277 gpt Ag, 0.24% Cu, 1.8% Pb, 4.7% Zn. “The historical underground workings on the Seitz Kelly vein extended over a strike length of 1,000 meters on 11 working levels. Geological and assay plan maps from the original operations were recovered from the Anaconda Collection archives at the University of Wyoming. A total of 5,301 underground channel samples with gold and silver assays in the Seitz Kelly workings (levels, raises, winzes, crosscuts) were digitized and plotted. Mining on the upper levels of the Seitz Kelly vein was advanced to Section 5500N but only to 5100N on Level 6 and 5000N on Level 7 below the Espuelas Canyon (see Sooy and Seitz Kelly Vein Plan Map) when the mine shut down in 1930. Both drifts were advancing to the north in high grade ore”.
  • Tocvan Ventures Corp. commenced field operations at Pilar, in Sonora. The company intends to evaluate surface mineralization with trenching and channel sampling, metallurgical studies and additional 5,000 to 8,000 m of drilling.
  • Canasil Resources Inc. is planning to resume core drilling at the Nora project in Durango. The work is set to start on the third week of November, and is to focus on testing below and along strike extensions of the Candy vein high-grade already defined. Ten holes have tested the Candy vein for 500 m of the 3 Km traced strike on the surface, to a depth of 175 below, returning up to 11.29 true-width @ 5.31 gpt Au, 336 gpt Ag.

ON MINING

  • Gatos Silver Inc. reported third quarter 2021 operational and financial results. At Cerro Los Gatos in Chihuahua, 242.9 K tonnes were mined, 234 K tonnes milled at 2,544 tpd, averaging 256 gpt Ag, 0.30 gpt Au, 2.35% Pb, 4.10% Zn, containing 1.7 M Oz Ag, 1.3 K Oz Au, 10.8 M Lb Pb, 13.5 M Lb Zn, having recovered 89% Ag, 63% Au, 91% Pb, 74% Zn. By-product cash cost was $3.58 per AgEq Oz and By-product AISC $19.57 per AgEq Oz.
  • Avino Silver & Gold Mines Ltd. presented its consolidated financial results for the third quarter 2021. During the period at the Avino mine in Durango, 58.2 K tonnes were milled to produce 77.9 K Oz Ag, 1,183 Oz Au, 685.5 K Lb Cu, at cash cost $6.75 per AgEq and AISC of $25.60. Currently mining and milling are proceeding at between 1,000 and 1,500 tpd, below the 2,500 tpd plant capacity. As announced before, the La Preciosa property was acquired and plans are being prepared to integrate production into the Avino operations.
  • Pan American Silver Corp. reported unaudited results for the third quarter 2021, including some figures from its Mexican operations. At La Colorada, in Zacatecas, 1.4 M Oz Ag, 700 Oz Au were produced at cash cost $12.65 and AISC $18.48 per Ag Oz. At Dolores, in Chihuahua, 484 K Oz Ag, 39.6 K Oz Au were produced at cash cost $767 and AISC $951 per Au Oz.
  • Fortuna Silver Mines Inc. reported third quarter 2021 financial results, including figures from its Mexican operations. At San Jose, in Oaxaca, 250 K tonnes were milled at an average rate of 2,862 tonnes per day (tpd), grading 185 gpt Ag, 1.22 gpt Au, with recoveries of 92% and 91% respectively, to produce 1.43 M Oz Ag, 8,910 Oz Au at cash cost $9.99 per Oz AgEq and an AISC of $15.51 per Oz AgEq.
  • Endeavour Silver Corp. released its financial results for the Q3 2021. The company operates the Guanaceví mine in Durango and the Bolañitos mine in Guanajuato, having suspended recently operations at the El Compas mine in Zacatecas. During the period 1.3 M Oz Ag, 10,541 Oz Au were produced at $8.16 per Oz Ag and AISC of $17.46 per Oz AgEq, net of gold credits.

ON FINANCING

  • Candelaria Mining Corp. has contracted the services of two marketing companies, Adelaide Capital Markets Inc. and Investor News Network (Caballo Blanco, Veracruz).
  • Heliostar Metals Ltd. closed the second and final tranche of its non-brokered private placement offering for gross proceeds of $2.713.6 K, which combined with the first tranche amount to aggregate gross proceeds of $4 M (Cumaro, Sonora).
  • Great Panther Mining Ltd. announced an agreement under which the underwriters are to buy shares of the company for aggregate gross proceeds of $20 M (Guanajuato Mine Complex, Guanajuato and Topia, Durango).

ON RESOURCES AND DEVELOPMENT

  • Fabled Silver Gold Corp. released results from underground diamond drilling on its Santa Maria property in Chihuahua. The highlighted core-length interval is 16.50 m @ 0.04 gpt Au, 20 gpt Ag, including 3.0 m @ 0.11 gpt Au, 42 gpt Ag, and 1.50 m @ 0.11 gpt Au, 50 gpt Ag, and 1.50 m @ 0.12 gpt Au, 33 gpt Ag. The interval is in a dike with 1 mm stockwork quartz/oxidized pyrite veining.
  • GoGold Resources Inc. reported results form 11 holes at Mololoa and 19 holes at El Nayar at its Los Ricos North project in Jalisco. Some of the highlighted core-length intervals at Mololoa comprise 8.5 m @ 0.12 gpt Au, 50 gpt Ag; 23.5 m @ 0.25 gpt Au, 78 gpt Ag; 1.4 m @ 1.87 gpt Au, 798 gpt Ag; 5.0 m @ 0.23 gpt Au, 75 gpt Ag; 19.9 m @ 0.39 gpt Au, 90 gpt Ag; 6.8 m @ 0.12 gpt Au, 51 gpt Ag; 9.7 m @ 0.35 gpt Au, 97 gpt Ag, and 8.0 m @ 0.21 gpt Au, 70 gpt Ag; 7.1 m @ 0.33 gpt Au, 126 gpt Ag; 3.9 m @ 1.73 gpt Au, 288 gpt Ag; 16.6 m @ 0.50 gpt Au, 116 gpt Ag; 5.6 m @ 0.27 gpt Au, 81 gpt Ag; 5.5 m @ 157 gpt Ag; 1.5 m @ 0.36 gpt Au, 335 gpt Ag; 3.8 m @ 0.87 gpt Au, 161 gpt Ag; 14.1 m @ 0.12 gpt Au, 92 gpt Ag; 3.1 m @ 3.20 gpt Au, 67 gpt Ag at El Nayar.
  • Pan American Silver Corp. provided results from 39 infill and step-out holes at La Colorada Skarn in Zacatecas. During the current year 36,000 m of infill drilling and 14,000 m of exploration drilling have been completed, and 18,000 m are planned before the year ends and a further 60,000 m in 2022. Highlighted core length intervals comprise 31.9 m @ 48 gpt Ag, 0.13% Cu, 3.5% Pb, 5.2% Zn; 77.1 m @ 119 gpt Ag, 0.26% Cu, 7.7% Pb, 13.6% Zn; 114.6 m @ 133 gpt Ag, 3.6% Pb, 4.8% Zn; 70.3 m @ 82 gpt Ag, 4.2% Pb, 10.0% Zn; 204.5 m @ 48 gpt Ag, 0.19% Cu, 3.2% Pb, 5.3% Zn; 181.7 m @ 60 gpt Ag, 0.13% Cu, 3.8% Pb, 4.3% Zn; 96.3 m @ 19 gpt Ag, 2.4% Pb, 3.1% Zn; 89.0 m @ 65 gpt Ag, 0.19% Cu, 3.3% Pb, 6.6% Zn; 264.1 m @ 60 gpt Ag, 0.23% Cu, 3.4% Pb, 6.8% Zn; 314.1 m @ 35 gpt Ag, 0.17% Cu, 0.17% Cu, 1.6% Pb, 2.8% Zn; 64.5 m @ 69 gpt Ag, 0.15% Cu, 2.1% Pb, 4.7% Zn; 111.0 m @ 41 gpt Ag, 0.22% Cu, 1.3% Pb, 4.3% Zn.
  • Golden Minerals Co. released assays from its reverse circulation and diamond drill programs at Rodeo, in Durango. Highlighted drilled-length intervals comprise 28 m @ 2.0 gpt Au, 18 gpt Ag; 34 m @ 2.3 gpt Au, 9 gpt Ag; 20 m @ 8.2 gpt Au, 23 gpt Ag; 26 m @ 2.4 gpt Au, 23 gpt Ag; 24 m @ 3.7 gpt Au, 14 gpt Ag. “The 2021 drilling programs conducted at Rodeo consisted of 47 RC holes totaling 3,187m, plus 35 diamond holes totaling 2461m”.
  • Osisko Development Corp. announced drilling results from its exploration and category conversion drill program at its San Antonio project in Sonora. Mineralization at Sapuchi, Golfo de Oro and California is in a hydrothermal breccia 3,000 m long with intense sericite-chlorite alteration in sedimentary rocks, related to an intrusion and interpreted as of iron oxide gold style affinity (IOCG). A total of 27,000 m on 156 holes have been drilled in 2021, of which results for the first 41 holes at Sapuchi were presented on this press release. Core length results comprise 12.50 m @ 2.16 gpt Au; 10.25 m @ 2.37 gpt Au; 17.70 m @ 1.01 gpt Au, 12 gpt Ag; 13.85 m @ 1.50 gpt Au; 9.45 m @ 1.58 gpt Au, 32 gpt Ag; 20.45 m @ 1.08 gpt Au; 22.15 m @ 1.59 gpt Au; 12.65 m @ 2.94 gpt Au; 9.00 m @ 2.24 gpt Au, 14 gpt Ag; 39.90 m @ 1.02 gpt Au; 19.30 m @ 1.60 gpt Au; 22.00 m @ 1.30 gpt Au; 21.65 m @ 2.14 gpt Au; 29.20 m @ 1.52 gpt Au, 14 gpt Ag; 11.85 m @ 1.80 gpt Au; 9.10 m @ 2.19 gpt Au.

ON DEALS AND CORPORATE ISSUES

  • Millrock Resources inc. signed a binding letter agreement (and received a US$50 K payment) with Mine Discovery Fund Pty. Ltd. on its El Batamote property in Sonora. A definitive agreement will be signed once MDF incorporates a subsidiary company in Mexico. To earn a 100% interest in the concessions, cash payments for a total of US$1 M over five years should be made, execute US$6 M in exploration and pay Millrock US$250 K in shares. If the purchase option is exercised, annual advanced minimum royalty payments will have to be made, the first of US$50 K, and then increasing annually until a US$500 K is reached, remaining capped at that level until commercial production is achieved, when a 1% NSR on production enters into effect.  The Batamote property hosts porphyry copper mineralization in the Cananea – La Caridad trend.

ON SOCIAL RESPONSIBILITY

  • Coanzamex informed on its sponsorship of the fire department in Parral, Chihuahua.
  • Industrias Peñoles and Fresnillo PLC informed on their support for basic science and education.
  • Grupo Mexico announced the donation of tree saplings to the Chihuahua government.

On the image below: Porphyritic dike on a porphyry copper project in the Sonoran Desert. Picture by Jorge Cirett.

The Mining and Exploration News in Mexico: Highlights on the Third Week of October, 2021. 

Boiling texture in a quartz vein.

By Miguel A Heredia

During the 42nd week of the year (October 18th to October 24th, 2021), at least 21 press releases were announced by companies working in Mexico and 14 news published by the media, with nine commenting on Mexican issues, six reporting resources and developments, six announcing financial issues, four communicating production and financial results, four informing on exploration results, four discussing social issues, and two disclosing deals and corporate issues.  ON MEXICO ISSUES, Governors of Guerrero, Chihuahua, and Durango showed their support for the mining industry during the inauguration of the XXXIV International Mining Convention in Acapulco. Jaime Gutiérrez Núñez, president of The Mining Chamber of Mexico (CAMIMEX) stated that the uncertainty will affect investments in the mining sector in Mexico. Tonatiuh Herrera Gutiérrez, Undersecretary of Promotion and Environmental Regulations of the Secretariat of the Environment and Natural Resources (SEMARNAT), warned that the agency will keep consultations on land use for the mining activity. Miguel Ángel Riquelme Solís, governor of Coahuila State and Grupo Mexico signed an agreement to regularize properties in the Carboniferous Region of Coahuila. The Mining Commission of the State Congress was installed in Sonora. Octavio Alvídrez, CEO of the Mexican precious metals Fresnillo plc stated that mining in Mexico currently has an “unfavorable” environment due to recent government policies. The Mexican Geological Service (SGM) will invest MXP $55.2M between this year and the next in the exploration of lithium. Karen Flores, director of the Mining Chamber of Mexico (CAMIMEX) stressed that due to lack of mineral concessions the mining industry in Mexico loses USD $25B. Sergio Almazán, president of the Association of Mining Engineers, Metallurgists and Geologists of Mexico (AIMMGM), highlighted the relevance of the mining industry for the country’s economy in the inauguration of the XXXIV International Mining Convention in Acapulco. ON EXPLORATION, In Baja California, One World Lithium announced that drill hole # 4 collared at its Salar del Diablo project, reached a total depth of 518m. In Sonora, Benjamin Hill reported that it has completed the location of 15 drill holes for the upcoming inaugural drill program at its Benjamin Hill project. In Nayarit, Sierra Madre released results of the first 11 trenches at its Tepic project. In Jalisco, Stroud provided an update of its 2021 Phase I drilling program conducted at its Santo Domingo project.  ON MINING, Excellon reported Q3, 2021 production results from its Platosa mine in Durango.  Mexus Gold announced a revenues increase at its Santa Elena mine in Sonora. Santacruz Silver announced Q3, 2021 production results from their Zimapan and Rosario mines located in Hidalgo and San Luis Potosi respectively. Sierra Metals reported Q3, 2021 production results from their Bolivar and Cusi mines in Chihuahua. ON FINANCING, Azucar Minerals granted stock options to a director to purchase 400K common shares at a price of $0.09 per share (El Cobre project, Veracruz). Barksdale provided an update regarding the secured loans that the company holds in Regal Resources (San Javier, Sonora). Canasil announced an initial non-brokered private placement for gross proceeds of up to $500K and later on it increased to $650K with additional $150K via flow-through shares (Nora project, Durango). Heliostar closed the first tranche of a non-brokered private placement offering for gross proceeds of $1,300,225.50 (Cumaro project, Sonora). Xali announced a non-brokered private placement for gross proceeds of approximately CAD $500K (El Oro project, State of Mexico). ON RESOURCES AND DEVELOPMENT, Chesapeake announced that a 16 holes infill drill program will commence in November at its Metates project in Durango.  Discovery Silver reported an updated Mineral Resource Estimate on its flagship Cordero project in Chihuahua State. Fabled released results from three holes collared at its Santa Maria project, Chihuahua.  Golden Minerals presented results from 25 recently completed RC holes at its Rodeo property in Durango. Impact Silver released results from and underground development drilling program of its Guadalupe mine in the Zacualpan mining district in the State of Mexico. Silver Tiger announced high grade results from its ongoing drilling program conducted at its El Tigre project in Sonora. ON DEALS AND CORPORATE ISSUES, Minera Gorrión S.A. de C.V. , a subsidiary company of Almaden Minerals Ltd., announced the completion of a Human Rights Impact Assessment (HRIA) for the Ixtaca mine development project in Puebla. One World Lithium announced the engagements of two new consultants (Salar del Diablo project, Baja California). ON SOCIAL RESPONSIBILITY, José Rosas Aispuro, Governor of Durango, highlighted that mining is synonymous with respect for human rights and has to be synonymous with respect for the environment. New Zealand Ambassador proposes to the Mexico mining industry to work with social inclusion and sustainability. The VP in Mexico of Torex Gold reiterated that its subsidiary Minera Media Luna is committed to the economic and social progress of the communities at the Guerrero mining corridor. Mulatos Mine of Alamos Gold, announced that it has reduced its lighting consumption by 70%, 10% in diesel and 25% in CO2 emissions.

ON MEXICO ISSUES

  • Governors of Guerrero, Chihuahua, and Durango showed their support for the mining industry during the inauguration of the XXXIV International Mining Convention in Acapulco because it represents a lever for the economic development of the country. They promised to respect the rule of law to promote the investment in the sector that generates jobs and benefits to the communities where it operates.
  • Jaime Gutiérrez Núñez, president of The Mining Chamber of Mexico Camimex stated that the suspension of new mining concessions as well as the effects of the possible approval of the electricity reform and the heavy tax burden is generating strong uncertainty in the mining sector in Mexico.
  • Tonatiuh Herrera Gutiérrez, Undersecretary of Promotion and Environmental Regulations of the Secretariat of the Environment and Natural Resources (SEMARNAT), warned that the agency will keep consultations on land use for mining activity. Jaime Gutierrez Núñez, president of CAMIMEX responded that the companies affiliated to said organization do not oppose to the consultations on land use for mining activity, but emphasized that times should be established for conducting such consultations. Likewise, the Director of CAMIMEX, Karen Flores Arredondo stressed that “the rules of the game” must be clear and based on the General Consultation Law.
  • Miguel Ángel Riquelme Solís, governor of Coahuila State and Grupo Mexico signed an agreement to regularize properties in the Carboniferous Region of Coahuila. This regulation agreement represents legal certainty for more than 400 families in the Carboniferous Region.
  • The Mining Commission of the State Congress was installed, chaired by the deputy for Morena, Próspero Valenzuela Muñer to meet the demands and open a space for dialogue with the mining sector in Sonora. In that sense, he mentioned that it is important that said commission lays the foundations for the detonation of economic development and well-being in Sonora, taking advantage of the fact that this entity constitutes one of the main mining states in the country.
  • Octavio Alvídrez, CEO of the Mexican precious metals Fresnillo plc stated that mining in Mexico currently has an “unfavorable” environment due to recent government policies. President Andrés Manuel López Obrador has been criticized by the mining industry for his policy of not granting new concessions, as well as for what he has described as unprecedented regulatory delays. The president further fueled industry concerns by recently proposing to Congress a controversial energy constitutional reform that rejects concessions for Lithium.
  • The Mexican Geological Service (SGM) will invest MXP $55.2M between this year and the next in the exploration of lithium  with a view to finding an economically viable deposit, informed its director, Flor de María Harp. Exploration work will be carried out in 52 areas during 2021 and in another 30 in 2022. She explained that the country needs hard data so that we are not talking about what we believe, imagine or assume, but about data that have a technical basis. The official insisted that in Mexico expectations have been generated around lithium that is not real, because there is still no hard data on the potential of the mineral.
  • Karen Flores, director of the Mining Chamber of Mexico (CAMIMEX) stressed that due to lack of mineral concessions the mining industry in Mexico loses USD $25B with the consequent absence of jobs generation and the fiscal contribution. So far in this six-year term, no new concessions have been granted, in addition to the fact that there are procedures stopped that have also impacted on the continuity of some mining projects.
  • Sergio Almazán, president of the Association of Mining Engineers, Metallurgists and Geologists of Mexico (AIMMGM), highlighted the relevance of the mining industry for the country’s economy in the inauguration of the XXXIV International Mining Convention in Acapulco. CAMIMEX, in its 2020 report stated that the industry currently generates around 408,000 direct jobs, plus almost 2 million indirect jobs. It means that many Mexican families literally live from mining. Mining activity stands out as the fifth earner of foreign currency to the country. He also highlighted that Mexican mining is a formal, modern, sustainable, safe, fiscally responsible industry, with competitive salaries and high quality standards.

ON EXPLORATION

  • One World Lithium Inc., announced that drill hole # 4 collared at its Salar del Diablo project in Baja California, reached a total depth of 518m and that sampling has been completed between 331 to 338m and a second zone between 460 to 518m. Samples have been submitted to the lab and results will be released once are received.
  • Benjamin Hill Mining Corp., announced that it has completed the location of 15 drill holes for the upcoming inaugural drill program at its Benjamin Hill project in Sonora. The goal of the drill program is to better understand the behavior of the mineralization at depth and drill-test the continuity of high-grade mineralization structures that are thought to be open down dip and on strike. 
  • Sierra Madre Gold and Silver Ltd., released results of the first 11 trenches at its Tepic project. Highlights include TZ005 with 68 g/t Ag and 0.3 g/t Au (91 g/t AgEq) over 10.5m; TZ011 with 39 g/t Ag and 1.06 g/t Au (119 g/t AgEq) over 10.1m,; and TZ 011A with 54 g/t Ag and 6.52 g/t Au (43 g/t AgEq) over 9.2m.
  • Stroud Resources Ltd., provided an update of its 2021 Phase I drilling program conducted at its Santo Domingo project in Jalisco. Stroud has completed 14 diamond holes for a total of 5,725m with the aim to explore the extent of known vein-hosted silver mineralization that run parallel to the existing La Raya and Guadalupe vein systems. Sampling and assaying of the drill core has begun and results will be released once they become available.

ON MINING

  • Excellon Resources Inc., reported Q3, 2021 production results from its Platosa mine in Durango. The company mined 21,592 tonnes and milled 21,302 tonnes of 526 g/t Ag, 4.9% Pb, and 5.4% Zn with metallurgical recoveries of 90.9%, 81.2%, and 78.3% respectively to produce 326.7K Oz Ag, 1.87M Lb Pb, and 1.98M Lb Zn (521.2K Oz AgEq).
  • Mexus Gold US announced a revenues increase at its Santa Elena mine in Sonora. “Mineralized material run through the crushing circuit and placed on the heap leach pad is currently assaying at an average of 4.6 g/t Au and 8 g/t Ag. The company will begun a new round of blast hole drilling on October 18th. These efforts will produce 15,000 tons of high-grade gold material for processing through the crushing/leaching circuit”. These efforts indicate a potential 1.5M Oz Au resource on the property.
  • Santacruz Silver Mining Ltd., announced Q3, 2021 production results from their Zimapan and Rosario mines located in Hidalgo and San Luis Potosi respectively. At Zimapan mine, Hidalgo, the company milled and processed 186,642 tonnes of 73 g/t Ag, 0.6% Pb, 2.53% Zn, and 0.35% Cu to produce 313.5K Oz Ag, 2.26M Lb Pb, 8.39M Lb Zn, and 1.1M Lb Cu (867.2K Oz AgEq). At Rosario mine, San Luis Potosi, the company milled and processed 2,306 tonnes of 41 g/t Ag, 0.15 g/t Au, 0.2% Pb, and 1.2% Zn to produce 2,548 Oz Ag, 8,960 Lb Pb, and 53.8K Lb Zn (5,698 Oz AgEq).
  • Sierra Metals Inc., reported Q3, 2021 production results from their Bolivar and Cusi mines in Chihuahua. At Bolivar mine, Chihuahua, the company processed 364,941 tonnes of 0.61% Cu, 11 g/t Ag, and 0.1 g/t Au at metallurgical recoveries of 73.06%, 71.97%, and 73.23% respectively to produce 3.6M Lb Cu, 95K Oz Ag, and 899 Oz Au (796K Oz AgEq or 4.53M Lb CuEq). At Cusi mine, Chihuahua, Sierra Metals processed 61,071 tonnes of 161 g/t Ag, 0.18 g/t Au and 0.6% Pb at metallurgical recoveries of 82.63%, 55.89%, and 82.64% respectively to produce 261K Oz Ag, 193 Oz Au and 695K Lb Pb (306K Oz AgEq).

ON FINANCING

  • Azucar Minerals Ltd., granted stock options to a director to purchase 400K common shares at a price of $0.09 per share, which expire on February 28, 2024 (El Cobre project, Veracruz).
  • Barksdale Resources Corp., provided an update regarding the secured loans that the company holds in Regal Resources Inc. Regal owes approximately $1.8M to Barksdale. Regal has until October 24, 2021 to file a cash-flow forecast that needs to be reviewed and signed by its proposal trustee.  If Regal is unable to repay its creditors or fails to put forward a proposal that is accepted by the creditors, it will enter bankruptcy (San Javier, Sonora).
  • Canasil Resources Inc., announced an initial non-brokered private placement of up to 4M units at a price of $0.125 for total gross proceeds of up to $500K. In addition to the non-brokered private placement the company will include up to 1M flow-through shares at $0.15 per flow-through share for a total of $150K. Canasil will use the gross proceeds from the non-brokered private placement to fund drill programs of their projects in Durango and Zacatecas (Nora and La Esperanza projects, Durango-Zacatecas).
  • Heliostar Metals Limited, closed the first tranche of a non-brokered private placement offering of up to 5,714,285 units at a price of $0.70 per unit for gross proceeds of $1,300,225.50. Part of the gross proceeds will be used to advance their Mexican projects, focusing primarily on the proposed Cumaro drill program in Q4, 2021, as well as for working capital and general corporate purposes.
  • Xali Gold Corp., announced a non-brokered private placement for gross proceeds of approximately CAD $500K. “Approximately CAD $250K of the gross proceeds will be used to further our permitting and targeting for drilling programs on our gold-silver projects and approximately CAD $250K will be used for working capital and general corporate purposes”  (El Oro project, State of Mexico).

ON RESOURCES AND DEVELOPMENT

  • Chesapeake Gold Corp., announced that a 16 holes infill drill program will commence in November at its Metates project in Durango. This infill program will consists of 6,700m with holes ranging from 250 to 650m depth, and will be drilled with the same orientation to maintain consistency with earlier drilling. “The infill drill program will further define the geological structural controls, expand drill density, and provide additional composite metallurgical samples for variability testing”.
  • Discovery Silver Corp., reported an updated Mineral Resource Estimate on its flagship Cordero project in Chihuahua State. The company reported Measured + Indicated Resources for 541M tonnes with grades of  20 g/t Ag,  0.6 g/t Au, 0.3% Pb, and 0.5% Zn (48 g/t AgEq), for a total of 344M Oz Ag, 1.04M Oz Au, 3,424M Lb Pb, and 6,132M Lb Zn (837M Oz AgEq), and Inferred Resources for  108M tonnes of 14 g/t Ag, 0.03 g/t Au, 0.2% Pb, and 0.4% Zn (34 g/t AgEq) for a total of 49M Oz Ag, 99K Oz Au, 451M Lb Pb, and 909M Lb Zn (119M Oz AgEq). The Resource is pit-constrained with an estimated waste-to-ore ratio of 1.1 and is supported by 224,000m of drilling in 517 drill holes and reinterpreted structural and geological models of the deposit. 87% of the contained metal is in the Measured and Indicated category.
  • Fabled Silver Gold Corp., released results from three holes collared at its Santa Maria project, Chihuahua. The most interesting drill interval was encountered in hole SM20-35 with 18.80m of 0.25 g/t Au, 9 g/t Ag (22 g/t AgEq), 0.2% Pb, and 0.5% Zn, including 0.50m of 1.1 g/t Au and 16 g/t Ag (73 g/t AgEq), 0.5% Pb, and 1% Zn, plus 1.65m of 1.93 g/t Au and 32 g/t Ag (131 g/t AgEq), 0.8% Pb, and 2% Zn. With these three holes concluded the Phase 1 exploration drill program and the plan now is to be focused on definition drilling to outline the previously discovered zones or trends. The company mentioned that Au is related to the northwest trending mineralized diorite dike encountered in present drilling. “The previous first modeled diorite dike was over 440 meters and now has been extended to a minimum of 1,000 meters in strike length and 400 meters at depth, open in all directions”.
  • Golden Minerals Company presented results from 25 recently completed RC holes at its Rodeo property in Durango. The company has drilled 47 RC holes totaling 3,187m, focusing on resource expansion and exploration of several targets located adjacent to the open pit. Highlights from the RC drill program include hole RRC_021_018 with 1 g/t Au and 5 g/t Ag over 54m, including 2.3g/t Au and 5 g/t Ag over 18m; RRC_021_020 with 1.7g/t Au and 12 g/t Ag over 26m, including 2.4 g/t Au and 16 g/t Ag over 8m, hole RRC_021_021 with 1.3 g/t Au and 17 g/t Ag over 56m, including 2.2 g/t Au and 18 g/t Ag over 24m: hole RRC_021_022 with 1g/t Au and 4 g/t Ag over 56m, including 3.9 g/t Au and 5 g/t Ag over 8m; and hole RRC_021_025 with 1.3 g/t Au and 6 g/t Ag over 52m, including 2.9 g/t Au and 11 g/t Ag over 18m.
  • Impact Silver Corp., released results from an underground development drilling program of its Guadalupe mine in the Zacualpan mining district in the State of Mexico. High grade drill intercepts were encountered in holes MPZ-UG-023-21 with 464 g/t Ag, 0.3%Pb, and 0.8% Pb over a true width (TW) of 6.04m at Carolina Vein and 300 g/t Ag, 0.3% Pb and 1.2% Zn over a TW of 3.44m at Dolores Bajo Vein; hole MPZ-UG-024-21 with 2,186 g/t Ag, 1.7% Pb, and 3.4% Zn over a TW of 3.38m at Carolina Vein; hole MPZ-UG-025-21 with 425 g/t Ag, 0.3% Pb, and 0.8% Zn over a TW of 3.47m at Carolina Vein and 527 g/t Ag, 0.9% Pb, and 1.9% Zn over a TW of 1.63m at Dolores Bajo Vein; hole MPZ-UG-028-21 with 486 g/t Ag, 0.3% Pb, and 1.2% Zn over a TW of 1.57m at La Rata Vein and 232 g/t Ag, 0.5% Pb, and 1% Zn over a TW of 5.94m at Kena Vein; and hole MPZ-UG-029-21 with 161 g/t Ag, 0.1% Pb, and 0.3% Zn over a TW of 2.12m at Carolina Vein, 269 g/t Ag, 0.2% Pb, and 0.4% Zn over a TW of 3.57m at Carolina Bajo Vein, and 427 g/t Ag, 0.5% Pb, and 0.6% Zn over a TW of 3.12m at Dolores Vein.
  • Silver Tiger Metals Inc., announced high grade results from its ongoing drilling program conducted at its El Tigre project in Sonora. Highlights include hole ET 21-244 collared in the Sooy Vein with 0.16 g/t Au, 455 g/t Ag, 0.12 % Cu, 0.3% Pb, and 0.2% Zn (491 g/t AgEq) over 7.5m, including 0.33 g/t Au, 1,073 g/t Ag,  0.3% Cu, 0.8% Pb, and 0.3% Zn (1,156 g/t AgEq) over 2.5m, including 1.3 g/t Au, 3,531 g/t Ag, 1.06 % Cu, 3.6% Pb, and 1.2% Zn (3,856 g/t AgEq) over 0.5m, plus an interval in the FW zone of 0.13 g/t Au, 593 g/t Ag, 0.13% Cu, 0.3% Pb, and 0.06% Zn (624 g/t AgEq) over 1.8m, including 0.4 g/t Au, 2,030 g/t Ag, 0.46% Cu, 1% Pb, and 0.2% Zn (2,133 g/t AgEq) over 0.5m; and hole ET 21-243 collared in the Benjamin Vein with 0.02 g/t Au, 92 g/t Ag, 0.07% Cu, 0.1% Pb, and 0.1% Zn (107 g/t AgEq) over 6.8m, including 0.02 g/t Au, 138 g/t Ag, 0.07% Cu, 0.1% Pb, and 0.1% Zn (155 g/t AgEq) over 4.3m, including 0.05 g/t Au, 864 g/t Ag, 0.54% Cu, 0.5% Pb, and 1% Zn (965 g/t AgEq) over 0.5m.

ON DEALS AND CORPORATE ISSUES

  • Minera Gorrión S.A. de C.V. , a subsidiary company of Almaden Minerals Ltd., announced the completion of a Human Rights Impact Assessment (HRIA) for the Ixtaca mine development project in Puebla. The HRIA is one of the most innovative, comprehensive and proven effective tools worldwide to estimate the potential impacts and corresponding mitigation measures in favor of the human rights of the communities located within the area of ​​influence of this productive project. Minera Gorrión reiterates its commitment to the exercise of modern and avant-garde mining, absolutely committed to respecting Human Rights, caring for the environment and creation of opportunities for the communities of Ixtacamaxtitlán always with cultural relevance.
  • One World Lithium Inc., announced the engagements of Rayleigh Capital and J&L Strategic Solutions LLC,  that offer different consulting services that are mutually beneficial to increase global market awareness and different financing opportunities that are less reliant on equity offerings.  Both consultants are very familiar with green technologies  (Salar del Diablo project, Baja California).

ON SOCIAL RESPONSIBILITY

  • José Rosas Aispuro, Governor of Durango, highlighted that mining is synonymous with respect for human rights and has to be synonymous with respect for the environment.
  • Sara Meymand, New Zealand Ambassador proposed to the Mexico mining industry to work with social inclusion and sustainability. She assured during the XXIV edition of the Acapulco Mining Convention that working in inclusion development and sustainability put up the mining activity internationally, focused on the preservation of the environment, dialogue with communities, gender perspective, use of new technologies, job creation and economic growth. She also stressed the importance of promoting a social license in the mining industry, which will allow companies to act with responsibility, commitment and subject to the care of the environment.
  • The vice president in Mexico of Torex Gold Resourcers Inc., Faysal Rodríguez Valenzuela reiterated that Minera Media Luna (MML) maintains its commitment to the social and economic development of the 11 communities that make up the Guerrero mining corridor, located between the municipalities of Cocula and Eduardo Neri. He also pointed out that the social investment of each year is intended to help improve people’s quality of life and work towards the fulfillment of the sustainable development objectives.
  • Mulatos Mine of Alamos Gold, reduced its power consumption on lighting by 70%, 10% in diesel and 25% in CO2 emissions. Alamos Gold seeks to contribute to the care of the environment reducing energy consumption and CO2 emissions into the atmosphere.

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 an epithermal quartz 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 October, 2021. 

Phyllic alteration and Cu mineralization

By Miguel A Heredia

During the 40th week of the year (October 04th to October 10th, 2021), at least 26 press releases were announced by companies working in Mexico and 3 news published by the media, with nine reporting resources and developments, six communicating production and financial results, four informing on exploration results, four announcing financial topics, three disclosing deals and corporate issues, two commenting on Mexican issues and one discussing social issues.  ON MEXICO ISSUES, Members of the Mining Cluster of Chihuahua met with federal deputies of the Partido Acción Nacional (PAN) to let them know of the importance of mining not only in the state but in the entire country.  President AMLO announced a proposal that would put end the current system of lithium concessions and leave exploration and production in the hands of the State. ON EXPLORATION, In Baja, One World Lithium provided an update of its current drilling program at its Salar del Diablo project. In Sonora, Benjamin Hill provided an update of details on the recently released NI 43-101 report on its Benjamin Hill project.  In Chihuahua, Kootenay reported results from the last six holes collared at its Columba project. In Jalisco, Almadex announced Q4, 2021 plans for its San Pedro project. ON MINING, Endeavour Silver reported Q3, 2021 production results from their Mexican mine operations. Gatos Silver announced Q3, 2021 production results from its 70% owned Cerro Los Gatos mine in Chihuahua. GoGold presented quarterly and year ending September 2021 production results from its Parral Tailings project in Chihuahua. Great Panther announced Q3, 2021 production results from their Topia and Guanajuato Mine Complex mines in Durango and Guanajuato states respectively. McEwen reported Q3, 2021 production results from its El Gallo property in Sinaloa. Torex Gold announced Q3, 2021 production results from its El Limon-Guajes Mine Complex in Guerrero. ON FINANCING, Aztec Minerals announced the arrangement of a non-brokered private placement for gross proceeds of CAD $1.05M (Cervantes project, Sonora). Heliostar announced the commencement of a non-brokered private placement for gross proceeds of up to $2M that later on increased it to a maximum of $4M (Cumaro, Oso Negro and la Lola project in Sonora). Tarachi Gold announced a non-brokered private placement for gross proceeds of up to $500K (Magistral Mill and Tailings project, Durango). ON RESOURCES AND DEVELOPMENT, Almaden announced that it has resumed drilling activities at its Ixtaca project in Puebla. Excellon released results from its underground drilling program conducted at its the Platosa mine in Durango. Fabled reported results from its underground drilling program at its Santa Maria project in Chihuahua.  Golden Tag received approval from the Secretariat of Natural Resources and Environment (SEMARNAT) to build additional 41 drill pads at its San Diego property in Durango. GR Silver completed a 3D resistivity, IP and ground magnetic survey at its Plomosas project in Sinaloa. Impact Silver released results from its underground drilling program at Zacualpan mining district, State of Mexico. Minera Alamos provided an update on the ongoing pit optimization drilling program at its Santana property in Sonora. Silver Dollar received drilling permit for its la Joya project in Durango. Tarachi Gold reported results from the tailings drilling program at its Magistral Mill and Tailings project in Durango. ON DEALS AND CORPORATE ISSUES, Santacruz Mining informed that it is suspending operations at the Rosario Project in San Luis Potosi, and placing it on care and maintenance. Riverside reported on mining claims consolidation and expansion of its the La Union polymetallic project in Sonora. Sailfish entered into a binding letter of intent with 1287398 B.C. Ltd., to create a silver focused exploration and development company (Gavilanes property, Durango). ON SOCIAL RESPONSIBILITY, Fresnillo plc and its subsidiary Minera Penmont delivered an ambulance to representatives of the Red Cross in Caborca, Sonora.

ON MEXICO ISSUE

  • Members of the Mining Cluster of Chihuahua met with federal deputies of the Partido Acción Nacional (PAN) to let them know of the importance of mining not only in the state but in the entire country. Deductions of the mining exploration expenses as well as the electricity reform were some of the issues addressed to the deputies. According to the mining sector, if the electricity reform is approved, it will affect the competitiveness of mining. The Mining Cluster, in communion with government authorities, seeks to generate the development of local supply, as well as attracting greater mining investment in the state.
  • President AMLO announced a proposal that would put end the current system of lithium concessions and leave exploration and production in the hands of the State. However, the owner of the USD $420M project Bacanora Lithium stated that the Mexican government’s plans to bring lithium resources under state control will not affect progress in Sonora, since the new reforms will not affect lithium licenses already granted to private companies, as long as exploration work has already started and all licensing requirements have been met.

ON EXPLORATION

  • One World Lithium Inc., provided an update of its current drilling program at its Salar del Diablo project in Baja. The company announced that hole DDH-4 reached a depth of 381m on October 2, 2021 with an expected total depth of 600m. If the results of DDH-4 warrant it, other boreholes will be drilled in the area.
  • Benjamin Hill Mining Corp., provided an update of details on the recently released NI 43-101 report on its Benjamin Hill project in Sonora. “Detailed mapping at 1:1,000 scale has indicated the presence of a large magmatic-hydrothermal system, including mineralized structures, stockworks, sheeted veins, alteration halos, all of which are hosted in granitoids, an eroded skarn system, a volcaniclastic sequence, and volcanic rocks, as well local orogenic quartz veins. This large hydrothermal system could be co-genetic with a bimodal dike swarm mapped on the property and related to a buried fertile plutonic system, suggesting that geological structures and mineralization seen at surface are indicative of a Cu-Au porphyry system at depth”. Recommended activities to be conducted at the property over the next 2-3 months are completing the mapping and sampling on the areas of Caracahui, la Salada, Caracahui Norte and the Sonora Copper; mapping and channel sampling of the Cascabel and Guadalupe adits; dating studies of the plutonic rocks, prospection of the new areas generated by geochemistry (La Falsa, San Felix, and La Berrenda); and channel sampling on the Sonora Copper adit.
  • Almadex Minerals Ltd announced Q4, 2021 plans for its San Pedro project in Jalisco. The company reported that the property is fully permitted and is currently mobilizing a team and rig to site to conduct a drill testing prior to year-end.
  • Kootenay Silver Inc., reported results from the last six holes collared at its Columba project in Chihuahua. The company announced the best drill intercept to date in hole CDH-21-103 with 333 g/t Ag over 44m, including 805 g/t Ag over 17m, including 1,201 g/t Ag over 11m, including 2,035 g/t Ag over 6m, and a high of 9,840 g/t Ag over 0.92m.

ON MINING

  • Endeavour Silver Corp., reported Q3, 2021 production results from their Mexican mine operations. The next table shows the production for the third quarter 2021 by mine:
  • Gatos Silver Inc., announced Q3, 2021 production results from its 70% owned Cerro Los Gatos mine in Chihuahua. The company mined 242,899 tonnes and milled 234,054 tonnes of 256 g/t Ag, 0.3 g/t Au, 2.35% Pb, and 4.1% Zn with metallurgical recoveries of 89%, 63%, 91%, and 74% respectively, to produce 1.7M Oz Ag, 1.3K Oz Au, 10.8M Lb Pb, and 13.5M Lb Zn.
  • GoGold Resources Inc., presented quarterly and year ending September 2021 production results from its Parral Tailings project in Chihuahua. GoGold produced 221.2K Oz Ag, 3,437 Oz Au and 309.1K Lb Cu (526,044 Oz AgEq) in the quarter period for a total of 1.14 M Oz Ag, 13.45K Oz Au, and 1.05M Lb Cu (2.27M Oz AgEq) in the full year ending in September 2021.
  • Great Panther Mining Limited announced Q3, 2021 production results from their Topia and Guanajuato Mine Complex mines in Durango and Guanajuato states respectively. At Topia, Durango, the company processed 14, 433 tonnes of 373 g/t Ag, and 0.64 g/t Au with metallurgical recoveries of 93.7% and 72.2% respectively, to produce 162.2K Oz Ag, 215 Oz Au, 600.3K Lb Pb, and 777.3K Lb Zn (242K Oz AgEq or 2,847 Oz AuEq). At Guanajuato Mine Complex, Guanajuato, Great Panther processed 41,343 tonnes of 102 g/t Ag, and 1.64 g/t Au with metallurgical recoveries of 87.1% and 86.4% respectively, to produce 118K Oz Ag and 1,883 Oz Au (278K Oz AgEq or 3,271 Oz AuEq). “The Company has not yet been granted a permit from the Comisión Nacional del Agua (CONAGUA) to expand the TSF at the Guanajuato Mill Complex, which only has sufficient capacity to continue milling operations until December 2021. While the Company continues to proactively engage CONAGUA to expedite the permitting process, the operating assumption is that a permit will not be forthcoming and numerous longer-term solutions are currently being assessed, including processing ore at third-party facilities”.
  • McEwen Mining Inc., reported Q3, 2021 production results from its El Gallo property in Sinaloa. In Q3, El Gallo produced 560 Gold Equivalents Ounces (GEOs) from residual leaching of the heap leach pad.
  • Torex Gold Resources Inc., announced Q3, 2021 production results from its El Limon-Guajes Mine Complex in Guerrero. The company reported a gold production of 111,220 Oz. The company sold this production at an average realized gold price of USD $1,785 per Oz.

ON FINANCING

  • Aztec Minerals Corp., announced the arrangement of a non-brokered private placement for gross proceeds of CAD $1.05M. Part of the net proceeds will be used to conduct exploration work at its Cervantes porphyry Au-Cu project in Sonora.
  • Heliostar Metals Limited announced the commencement of a non-brokered private placement for gross proceeds of up to $2M that later on was increased to a maximum of $4M. Part of the gross proceeds will be used to conduct exploration work at the Cumaro, Oso Negro and la Lola project in Sonora.
  • Tarachi Gold Corp., announced a non-brokered private placement for gross proceeds of up to $500K. Proceeds of the private placement will be used for general working capital. (Magistral Mill and Tailings project, Durango).

ON RESOURCES AND DEVELOPMENT

  • Almaden Minerals Ltd., announced that it has resumed drilling activities at its Ixtaca project in Puebla. The company also informed that all fieldwork has been conducted in compliance with the Mexican Institute for Social Security (IMSS) since the Company’s Covid-19 protocols detected several COVID-19 cases amongst members of the Company’s local staff. All these individuals were immediately quarantined and supported by the company and one was hospitalized, who unfortunately passed away despite all best efforts. The company has established a COVID Committee that meets weekly to assess the COVID- 19 situation, ensure commitment to company protocols, and discuss opportunities for improvement in the protocols.
  • Excellon Resources Inc., released results from its underground drilling program conducted at its the Platosa mine in Durango. Highlights include hole EX21UG90 with 1,570 g/t Ag, 10.4% Pb, 29.6% Zn, and 0.1 g/t Au (2,860 g/t AgEq) over 7.5m, including 2,424 g/t Ag, 14% Pb, and 35% Zn (3,987 g/t AgEq) over 3.4m, plus 479 g/t Ag, 4.6% Pb, and 2% Zn (667 g/t AgEq) over 2.5m, including 1,758 g/t Ag, 16.5% Pb, and 7.5% Zn (2,441 g/t AgEq) over 0.5m; and hole EX21UG687 with 1,214 g/t Ag, 8.3% Pb, and 16.9% Zn (2,009 g/t AgEq) over 3.1m, including 2,530 g/t Ag, 16.7% Pb, and 19.3% Zn (3,623 g/t AgEq) over 1.2m. “Drilling from underground continues to define and expand known mineralization ahead of production at the 623 and NE-1S mantos. Drilling at Platosa will continue to target areas ahead of production and test the extent of mineralization around mine workings”. 
  • Fabled Silver Gold Corp., reported results from its 1,200m underground drilling program at its Santa Maria project in Chihuahua. Hole SMUG21-16 intersected 0.21 g/t Au,  120 g/t Ag, 0.1% Pb, 0.4% Zn, and 0.01% Cu (131 g/t AgEq) over 5.1m, including 0.6 g/t Au, 387 g/t Ag, 0.35% Pb, 0.6% Zn, and 0.01% Cu (418 g/t AgEq) over 1.3m. Hole SMUG21-17 drilled from the same setup but with different dip angle intersected 1.07 g/t Au, 106 g/t Ag, 0.05% Pb, and 0.2% Zn (161 g/t AgEq) over 3.95m, including 6.46 g/t Au, 490 g/t Ag, 0.3% Pb, 0.45% Zn, and 0.01% Cu (822 g/t AgEq) over 0.60m.
  • Golden Tag Resources Ltd., received approval from the Secretariat of Natural Resources and Environment (SEMARNAT) to build additional 41 drill pads at its San Diego property in Durango, increasing the total number of permissible pads to 55. The new permit is valid for a period of 4 years.
  • GR Silver Mining Ltd., completed a 3D resistivity, IP and ground magnetic survey at its Plomosas project in Sinaloa. This geophysical survey links San Marcial resource with the recent GAP area discovery and the San Juan resource. Elevated chargeability has been identified in the vicinities of San Marcial resource area; the magnetic survey shows several oriented magnetic features; and the resistivity data shows that important parts of the Plomosas project are separated into structural blocks controlled by NW-trending faults and mineralized structures. Early-stage field assessment of Ag-Au targets is underway and several of these are currently in the drill planning stage.
  • Impact Silver Corp., released results from its underground drilling program in the Lipton area of its Guadalupe Mine at Zacualpan mining district, State of Mexico. Significant drill intercepts were encountered in hole MPZ-UG-001-21 with 327 g/t Ag, 0.3% Pb, and 0.6% Zn over a true width (TW) of 2.5m; hole MPZ-UG-002-21 with 691 g/t Ag, 0.3%, and 0.7% over a TW of 1.29m; hole MPZ-UG-006-21 with 443 g/t Ag, 0.2% Pb, and 0.3% Zn over a TW of 1.90m; and hole MPZ-UG-014-21 with 472 g/t Ag, 0.2% Pb, and 0.5% Zn over a TW of 1.69m. The drill holes covered the vein systems over a strike length of 430m and a vertical distance of 200m.
  • Minera Alamos Inc., provided an update on the ongoing pit optimization drilling program at its Santana property in Sonora. Drilling highlights include hole S20-147D with 0.69 g/t Au over 248.8m from surface and ending in mineralization; hole S20-149D with 0.77 g/t Au over 152.7m from surface, including 1.39 g/t Au over 56.2m; and hole S21-160D with 0.51 g/t Au over 242.7m from 41.9 down hole.   
  • Silver Dollar Resources Inc., received permit for the next phase of drilling at its la Joya project in Durango. The company is cashed-up and eager to restart exploration drilling for the first time in over seven years.
  • Tarachi Gold Corp., reported results from the tailings drilling program at its Magistral Mill and Tailings project in Durango. A total of 37 vertical auger holes were completed to depths ranging from 1.3 to 14.5m with an average depth of 6.6m. The 171 gold tailings samples ranged in grade from 0.89 to 4.12g/t with an average of 2.04g/t Au.

ON DEALS AND CORPORATE ISSUES

  • Santacruz Silver Mining Ltd., informed that it is suspending operations at the Rosario Project in San Luis Potosi, and placing it on care and maintenance. This decision was made following an extensive review by management of the Rosario project operations and strategic options available including the potential sale of the operation.
  • Riverside Resources Inc., reported on mining claims consolidation and expansion of its the La Union polymetallic project. The acquisition of the La Famosa and Plomito small internal claims provided Riverside access to high-grade small scale mine properties increases its property total area to over 2,604 hectares. Riverside optioned these properties over 4 years term staged cash payments without any NSR.  At La Famosa, Riverside can earn 100% of interest in the property by making a total cash payment of USD $175K in staged cash payments starting with USD $10K in the first year anniversary, $USD 15K in the second year, USD $25 in the third year, USD $50K in the fourth year, and a final cash payment of USD $75,000. At Plomito, Riverside can earn 100% interest in the property by making a total cash payment of USD $165K in staged cash payments, starting with USD $10K in the first year anniversary, $USD 15K in the second year, USD $25 in the third year, USD $40K in the fourth year, and a final cash payment of USD $75,000.
  • Sailfish Royalty Corp., entered into a binding letter of intent with 1287398 B.C. Ltd., to create a focused exploration and development company (Pubco or Sailfish Silver as the proposed transaction). The plan is to transfer the Gavilanes Silver Project to Pubco in exchange for shares of Pubco.  

ON SOCIAL RESPONSIBILITY

  • Fresnillo plc and its subsidiary Minera Penmont delivered an ambulance to representatives of the Red Cross in Caborca, Sonora. With this action, the Mexican company strengthens the vehicle fleet of the health institution that is responsible for protecting the health of the people of Caborca.

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 phyllic alteration with Cu mineralization in a prospect in Sonora, Mexico.  Photo by Miguel A Heredia.

The Mining and Exploration News in Mexico: Highlights on the Fourth Week of July, 2021

By Jorge Cirett

During the 29th week of the year (July 19th to July 25th, 2021), at least 19 press releases were announced by companies working in Mexico. To note, two companies posted exploration advances on their properties, two on quarterly reports and one in reopening plans, two on financing news, five more on project development or resource definition and two posted on deals or corporate issues. ON MEXICO ISSUES, no relevant news. ON EXPLORATION, in Sonora, Silver Spruce added a second rig to Drilling at El Diamante. In Chihuahua, Mammoth Resources informed on drill targeting at Tenoriba.  ON MINING, Fortuna Silver and Excellon Resources released Q2 2021 reports. Americas Gold and Silver updated on the re-opening plan at its Cosalá operations. ON FINANCING, Altaley Mining executed a 12 M loan agreement for the development of Tahuehueto. ON RESOURCES AND DEVELOPMENT, Mexican Gold Mining continues work on Cerro Las Minitas PEA. Sonoro Gold released results from surface rock chip sampling at Cerro Caliche. Southern Silver Exploration reported diamond drill results from Cerro Las Minitas. GoGold Resources released drilling results from Los Ricos North.  ON DEALS AND CORPORATE ISSUES, Sierra Madre Gold and Silver signed an option agreement on the acquisition of the La Tigra project in Nayarit. Vizsla Silver is to exercise the option to acquire 100% of the Panuco-Copala district in Sinaloa.  ON SOCIAL RESPONSIBILITY, Peñoles and Fresnillo PLC informed on the several projects that the companies provide for the education of young people on several areas of Mexico, especially in digital platforms. Conalep and the New Mexico Institute of Mining signed an agreement to enhance the learning of students across the borders.

ON MEXICO ISSUES

  • No Relevant News.

ON EXPLORATION

  • Mammoth Resources Corp. informed on drill targeting activities at Tenoriba, in Chihuahua. “The Company has extended drill targets an additional 1.7 kilometres (km), for a total of over 4.0 km from its previously announced initial 2.4 km of the 3-dimensional (3D) modelling of its infill, Induced Polarization/Magnetometer (IP/Mag) geophysical survey”. Work in the project by previous operators, Mammoth and Centerra includes over 6,000 soil samples, more than 750 rock chip samples, 151 m of surface channel samples, 26 diamond drill holes, IP and magnetic geophysical surveys, mapping, and spectral identification of alteration minerals.
  • Silver Spruce Resources Inc. is to continue its phase 1 reverse circulation drilling at El Mezquite in Sonora. Seven holes have been already completed, and a second rig has been added to the property to complete the 2,475 m of drilling. “The Phase 1 RC program comprises 20 holes with a combined depth of 2,475 metres (950 metres completed) and will utilize eight drill pad locations focused around a 400m x 600m area with elevated precious metal values to 3.41 g/t Au and 387 g/t Ag”.

ON MINING

  • Fortuna Silver Mines Inc. reported production results for the second quarter 2021. At its San José mine in Oaxaca, 1.62 M Oz Ag, 10,266 Oz Au were produced from ore averaging 205 gpt Ag, 1.30 gpt Au. Production and cost guidance for 2021 is 5.8-6.5 M Oz Ag, 38-42 K Oz Au at an AISC of US$12.2-14.5 per Oz AgEq.
  • Excellon Resources Inc. announced Q2 2021 production results from its Platosa mine in Durango. A total of 21.8 K tonnes were mined, and 21.6 K tonnes were milled @ 489 gpt Ag, 5.14% Pb, 6.48% Zn, recovering 87.0% Ag, 78.6% Pb, 79.4% Zn, to produce 296 K Oz Ag, 1.93 M Lb Pb, 2.46 M Lb Zn.
  • Americas Gold and Silver Corp. provided an update on the re-opening plan of its Cosalá operations in Sinaloa. The Company and Government Labour inspectors jointly visited the mine and mill and both appear in good condition. “Mexican government inspectors from the Mexican Ministry of Labour will be in Cosalá this week to review the re‐start plans, which will allow the Company to begin recalling employees immediately following the completion of the inspection assuming compliance with the terms of the July 6, 2021 agreement“. The company expects the mine and the mill to be operating by the end of July, and the operation also has 70 K tonnes of ore stockpiled and ready to process.

ON FINANCING

  • Altaley Mining Corp. executed a US$12 M loan facility agreement with Accendo Banco S.A. Institución de Banca Múltiple, to complete the final part of it’s previously announced US$25 M Accendo syndicate funding plan to complete the construction and ramp-up of its Tahuehueto project in Durango (Campo Morado, Guerrero).
  • Zacatecas Silver Corp. announced that its common shares are eligible for electronic clearing and settlement through the Depositary Trust Co. in the United States. “DTC is a subsidiary of the Depository Trust & Clearing Corporation, a U.S. company that manages the electronic clearing and settlement of publicly traded companies. Securities that are eligible to be electronically cleared and settled through DTC are considered to be “DTC eligible” (Zacatecas Silver, Zacatecas).

ON RESOURCES AND DEVELOPMENT

  • Mexican Gold Mining Corp. announced work continues to produce the PEA on its Las Minas project in Veracruz, within three weeks.
  • Sonoro Gold Corp. reported assay results from surface sampling at its Cerro Caliche property in Sonora. With 1,292 soil and rock samples collected, a 600 m southern extension and a 750 m extension were confirmed on the El Colorado-La Ventana and the Buena Suerte-San Quintin corridors, with 23.7 m @ 1.7 gpt Au (including 5.5 m @ 6.0 gpt Au) in the former and 52.6 m @ 0.2 gpt Au in the latter.
  • Southern Silver Exploration Corp. reported diamond hole drilling results from its Cerro Las Minitas project in Durango. Highlighted true width intervals comprise 1.4 m @ 719 gpt Ag, 14.2% Pb, 16.0% Zn; 0.4 m @ 541 gpt Ag, 0.1 gpt Au, 8.8% Pb, 4.0% Zn in the South Skarn target, and 0.5 m @ 452 gpt Ag, 0.5 gpt Au, 2.8% Pb, 0.6% Zn; 0.5 m @ 312 gpt Ag, 0.12 gpt Au, 2.8% Pb, 0.6% Zn in the Huizache chimney in the Mina La Bocona area. “Current modelling has identified three panels of mineralization at the South Skarn target, the largest of which can now be traced laterally for approximately 400 metres and up to 580 metres down-dip”.
  • GoGold Resources Inc. released results of eight diamond drill holes from El Orito area in the Los Ricos North project in Jalisco. Highlighted core length intervals comprise 41.2 m @ 10 gpt Ag, 0.01 gpt Au, 0.06% Cu, 0.3% Pb, 2.0% Zn; 33.3 m @ 19 gpt Ag, 0.03 gpt Au, 0.08% Cu, 1.1% Pb, 1.7% Zn; 13.0 m @ 30 gpt Ag, 0.02 gpt Au, 0.22% Cu, 0.3% Pb, 1.1% Zn; 3.0 m @ 19 gpt Ag, 0.02 gpt Au, 0.34% Cu, 1.3% Pb, 1.6% Zn; 18.0 m @ 51 gpt Ag, 0.09 gpt Au, 0.06% Cu, 0.4% Pb (including 1.9 m @ 230 gpt Ag, 0.34 gpt Au, 0.23% Cu, 1.0% Pb; 54.3 m @ 97 gpt Ag, 0.12 gpt Au, 0.70% Cu, 2.9% Pb, 5.4% Zn; 38.1 m @ 32 gpt Ag, 0.03 gpt Au, 0.17% Cu, 1.9% Pb, 2.7% Zn; 69.1 m @ 26 gpt Ag, 0.05 gpt Au, 0.14% Cu, 1.0% Pb, 1.6% Zn (including 4.0 m @ 149 gpt Ag, 0.25 gpt Au, 0.70% Cu, 3.2% Pb, 6.9% Zn). “The holes that the Company has drilled to date at El Orito have shown mineralization averaging approximately 30m in width for more than 700m in strike length and up to approximately 300m in vertical depth from surface and is open in all directions”.
  • Minera Alamos Inc. informed that its Santana project in Sonora continues to advance as programmed despite the above average rainfall to date in the area. The press release describes all the progress in leach solution systems, overliner placement, crushing and screening, grade procedures and mining.

ON DEALS AND CORPORATE ISSUES

  • Sierra Madre Gold and Silver Ltd. Entered into a purchase agreement with an option to joint venture with Industrial Minera México S.A. de C.V. (IMMSA) for the 357 ha. La Tigra project in Nayarit, 150 km north of its flagship’s Tepic project. The agreement involves payment of US$1.5 M over three years, with Sierra Madre obliged to produce a 43-101 technical report before the end of the period. IMMSA holds a 2.5% NSR royalty of which Sierra Madre can acquire 1.5% for US$1.5 M.
  • Vizsla Silver Corp. signed a binding agreement with Minera Rio Panuco S.A. de C.V. and executed a binding option exercise notice with Silverstone Resources which together constitute the acceleration and exercise of the option to acquire 100% of the Panuco-Copala district in Sinaloa. Vizsla has to pay $US4.25 M upon signing, issue US$12 M in Vizsla shares before August 10, 2021; and make a cash payment of $US6.1 M before February 2022.

ON SOCIAL RESPONSIBILITY

  • Peñoles and Fresnillo PLC  informed on the several projects that the companies support provide for the education of young people on several areas of Mexico, especially in digital platforms.
  • Conalep (Colegio Nacional de Estudios Profesionales y Tecnicos) and the New Mexico Institute of Mining and Technology signed an agreement to enhance the learning of Mexican and American students.

On the image below:  Intense quartz veining in a granitic intrusive rock in Sinaloa. Picture by Jorge Cirett.

The Mining and Exploration News in Mexico: Highlights on the Second Week of July, 2021

By Jorge Cirett

During the 27th week of the year (July 5th to July 11th, 2021), at least 22 press releases were announced by companies working in Mexico. To note, six companies posted exploration advances on their properties, four on quarterly production and one about the end of an illegal blockade 17 months long, one posted on financing, five more on project development or resource definition and one posted an update on a law suite. ON MEXICO ISSUES, the illegal blockade on Americas Gold and Silver Cosalá operations in Sinaloa was terminated. Mexico has fallen 13 places on the Fraser’s Index on Mining Attractiveness, affected by perceptions on security and rule of law. ON EXPLORATION, in Sonora, Benjamin Hill Mining released surface assay results high in Cu and Au; Tocvan Ventures released results from RC drilling at Pilar. In Sinaloa, Brigadier Gold released drilling and underground sampling results from Picachos. In Durango, Canasil started drilling at Nora. In Zacatecas, Zacatecas Silver signed surface access agreements to the San Gill zone at its Zacatecas Silver project. In Oaxaca, Madoro Metals updated on exploration at Yautepec. ON MINING, GoGold Resources, Gatos Silver, Endeavour Silver and Torex Gold presented second quarter 2021 production results. Americas Gold and Silver signed an agreement with several ministries to reopen Its Cosalá operations in Sinaloa.  ON FINANCING, Gold79 Mines commenced trading on the OTCQB Venture Market in USA. Minaurum Gold closed a financing round for C$9.2 M. ON RESOURCES AND DEVELOPMENT, Southern Silver released drilling results from Cerro Las Minitas in Durango. GR Silver Mining, reported drill hole results from Plomosas in Sinaloa. Capitan Mining reported RC holes results from Peñoles, Durango. Guanajuato Silver provided drilling results from Pinguico, Guanajuato. Fabled Silver reported underground drilling results from Santa Maria, Chihuahua. ON DEALS AND CORPORATE ISSUES, Excellon Resources informed on a legal suite regarding the Miguel Auza mine in Zacatecas. ON SOCIAL RESPONSIBILITY, Fresnillo PLC, Minera Autlán and Newmont Peñasquito informed on activities supporting sports, the environment and community equipment in different localities.

ON MEXICO ISSUES

  • Mexico has fallen 13 places in the Fraser’s Index of Mining attractiveness from 2008 to 2020. Investment also saw a 42.8% reduction in the same period, including some effect by the pandemic. Security, labor regulations, political instability, lack of mining concessions and a nationalization streak in the current government were cited as deterrents to investment in the country. Those viewpoints are reflected in less investment, less employment and fewer opportunities to find new orebodies, factors that will lead to  reductions in production and taxes to be paid in the coming years.
  • The illegal blockade on Americas Gold and Silver Cosalá operations is off. After 17 months of illegal blockade, the negotiations aided by the federal government can hardly be called a success. Events like this one add to the deterioration on the global perception of Mexico as a good place for mining investment.
  • The AIMMGM (Asociación de Ingenieros de Minas, Metalurgista y Geólogos de México) stated through its president Sergio Almazán, that investment in the Mexican mining sector has been affect by the lack of certitude.

ON EXPLORATION

  • Benjamin Hill Mining Corp. released assay results from surface sampling at the Caracahui, Caracahui Norte and Sonora Copper areas from its Sonora Gold property in Sonora. Some of the highlighted comprise: 0.1 gpt Au, 12.2% Cu, 80 gpt Ag; 1.7 gpt Au, 10.2% Cu, 15 gpt Ag; 4.4% Cu, 8 gpt Ag; 0.2 gpt Au, 4.3% Cu, 25 gpt Ag; 1.2 gpt Au, 2.4% Cu, 98 gpt Ag; 0.1 gpt Au, 1.9% Cu, 3 gpt Ag; 0.6 gpt Au, 1.5% Cu, 24 gpt Ag; 2.2 gpt Au, 0.9% Cu, 17 gpt Ag; 15.9 gpt Au, 0.4% Cu, 3 gpt Ag; 3.3 gpt Au, 0.1% Cu, 47 gpt Ag; 2.5 gpt Au, 0.1% Cu, 65 gpt Ag; 2.4 gpt Au, 0.5% Cu, 7 gpt Ag; 2.2 gpt Au, 0.9% Cu, 17 gpt Ag; 2.0 gpt Au, 0.3% Cu, 53 gpt Ag. “The recent advancement of exploration on the Sonora Gold concession has identified expansive copper mineralization along broadly continuous structural trends which have not yet been fully explored”.
  • Canasil Resources Inc. announced the start of the 2021 drill program at the Nora project in Durango. The initial focus is to test below, between and on strike extensions from high-grade Au and Ag intercepts from the 2020 program. Highlighted true width intercepts from the previous campaign include 2.40 m @ 4.78 gpt Au, 351 gpt Ag; 1.49 m @ 11.86 gpt Au, 378 gpt Ag and 3.05 m @ 3.71 gpt Au, 489 gpt Ag, with Pb, Zn, Cu credits.
  • Brigadier Gold Ltd. released drilling and underground sampling results from its Picachos project in Sinaloa. Highlighted underground sampling results comprise 0.3 m @ 31.4 gpt Au, 11 gpt Ag, 0.2% Cu, 0.5% Pb, 2% Zn; 3.2 m @ 7.43 gpt Au, 0.1% Pb, 0.2% Zn; 0.9 m @ 4.64 gpt Au, 0.1% Pb, 0.1% Zn; 0.5 m @ 38.88 gpt Au, 22 gpt Ag, 0.4% Cu, 1.7% Pb, 1.5% Zn; 1.0 m @ 12.79 gpt Au, 8 gpt Ag, 0.1% Cu, 0.9% Pb, 0.9% Zn. A surface trench returned 8 m @ 2.14 gpt Au, 0.1% Pb. Highlighted core length intervals comprise 6.5 m @ 0.26 gpt Au, 6 gpt Ag; 60.3 m @ 0.41 gpt Au, 0.2% Zn (including 4.5 m @ 0.56 gpt Au, 0.1% Pb, 0.1% Zn and 7.5 m @ 0.98 gpt Au, 0.1% Zn); 113 m @ 0.19 gpt Au, 0.1% Pb, 0.2% Zn (including 1 m @ 6.89 gpt Au, 0.1% Zn; 4 m @ 1.85 gpt Au; 1 m @ 5.51 gpt Au, 0.1% Zn); 123 m @ 0.27 gpt Au, 0.1% Pb, 0.2% Zn (including 4 m @ 1.08 gpt Au; 4 m @ 1.10 gpt Au, 0.4% Pb, 1.7% Zn; 1 m @ 3.51 gpt Au, 0.1% Pb).
  • Madoro Metals Corp. provided an update on recent exploration results from its Yautepec project in Oaxaca. A previously unknown 7 km long trend of epithermal alteration was found in the southern part of the project by company geologists. Highlighted results comprise 0.10 m @ 12.35 gpt Au, 1,250 gpt Ag in a quartz vein grab sample within a stockwork complex 400 by 200 m in the Tecolote zone; 0.10 m vein @ 0.54 gpt Au, 0.16% Cu, 1.3% Zn on the Southern Dike zone.
  • Zacatecas Silver Corp. completed access agreements with landowners at the San Gill breccia zone and San Gill vein system at its Zacatecas Silver project in Zacatecas. Environmental reports have been sent to SEMARNAT for the drilling of the Panuco and San Gill systems, and a third one is being prepared for El Cristo zone.
  • Tocvan Ventures Corp. released results from six reverse circulation drill holes at its Pilar project in Sonora. The phase II program sunk over 3,500 m in 20 holes, highlighted core length intervals comprise 44.22 m @ 0.41 gpt Au, 4 gpt Ag (including 7.63 m @ 1.66 gpt Au, 7 gpt Ag); 47.27 m @ 0.75 gpt Au, 5 gpt Ag (including 12.20 m @ 1.12 gpt Au and 19.82 m @ 1.06 gpt Au).

ON MINING

  • GoGold Resources Inc. reported production of 315.6 K Oz Ag, 3,170 Oz Au, 120 tonnes Cu during the second quarter of 2021 at its Parral tailings project in Chihuahua.
  • Americas Gold and Silver Corp. signed an agreement with the Mexican Ministries of Economy, Interior and Labour committing to a reopening of its Cosalá operations in Sinaloa, shut by an illegal blockade spanning 17 months. “After the long period of denied access, the agreement contemplates immediate right to possession of the property with a joint inspection coordinated by the Ministry of Labor this Thursday, so that the mine can restart operations in a safe and sustainable manner”.  
  • Gatos Silver Inc. released its production report for the second quarter of 2021, which constitute a record for the company. A total of 240 K tonnes were mined, 230.6 K tonnes were milled at a daily rate of 2,535 tonnes, with an average grade of 322 gpt Ag, 0.35 gpt Au, 2.51% Pb, 4.41% Zn, with recoveries of 89% Ag, 63% Au, 90% Pb, 75% Zn, to produce 2.1 M Oz Ag, 1.5 K Oz Au, 11.2 M lb Pb, 14.5 M Lb Zn in Pb and Zn concentrates.
  • Endeavour Silver Corp. reported production results for the second quarter 2021. During the period 1.07 M Oz Ag, 11,166 Oz Au were produced. The El Cubo mine in Guanajuato was sold to Guanajuato Silver Corp..
  • Torex Gold Resources Inc. released production results for Q2 2021. At its El Limón-Guajes mine in Guerrero, a total of 118,050 Oz Au was produced, with an average plant throughput of 11,980 tpd, average underground ore mined of 1,420 tpd and an average open pit ore mined of 12,430 tpd.

ON FINANCING

  • Gold 79 Mines Ltd. commenced trading on the OTCQB Venture Market in the United States, operated by the OTC Markets Group Inc., under the stock symbol AUSVF (Taviche , Oaxaca).
  • Minaurum Gold Inc. closed a previously announced bought deal public offering, for gross proceeds of C$9.2 M. Due to the demand, the offering was upsized from the original gross proceeds of C$7 M. The offering included an investment from Crescat Capital (Alamos Silver, Sonora).

ON RESOURCES AND DEVELOPMENT

  • Southern Silver Exploration Corp. released drilling results that extend mineralization at the South Skarn and La Bocona areas at its Cerro Las Minitas project in Durango. True width core intervals comprise 1.8 m @ 161 gpt Ag, 0.1 gpt Au, 4.9% Pb, 3.0% Zn (including 0.4 m @ 422 gpt Ag, 0.4 gpt Au, 13.2% Pb, 9.1% Zn); 2.6 m @ 159 gpt Ag, 0.1 gpt Au, 2.4% Pb, 3.5% Zn; 14.0 m @ 162 gpt Ag, 0.2 gpt Au, 1.4% Pb, 0.5% Zn; 1.1 m @ 227 gpt Ag, 0.1 gpt Au, 3.7% Pb, 1.9% Zn. As of May 2019, the indicated resources stood at 37.5 M Oz Ag, 40 M Lb Cu, 303 M Lb Pb, 897 M Lb Zn; and inferred resources at 45.7 M Oz Ag, 76 M Lb Cu, 253 M Lb Pb, 796 M Lb Zn.
  • GR Silver Mining Ltd. reported results from the final drill holes to be incorporated in to the incoming resource estimation on the Plomosas mine area of the Plomosas project in Sinaloa. True width highlighted intervals comprise 29.5 m @ 1.13 gpt Au, 0.1% Zn (including 9.1 m @ 2.12 gpt Au, 0.1% Pb, 0.1% Zn); 6.4 m @ 0.81 gpt Au, 0.1% Zn; 3.6 m @ 163 gpt Ag, 0.05 gpt Au, 6.4% Pb, 3.7% Zn, 0.2% Cu; 6.1 m @ 120 gpt Ag, 0.48 gpt Au, 2.8% Pb, 0.7% Zn, 0.1% Cu; 0.9 m @ 5.24 gpt Au, 0.2% Pb, 0.2% Zn; 11.8 m @ 328 gpt Ag, 0.19 gpt Au, 0.5% Pb, 1.2% Zn; 1.0 m @ 680 gpt Ag, 0.04 gpt Au, 0.6% Pb, 2.4% Zn; 4.9 m @ 143 gpt Ag, 1.2% Pb, 4.3% Zn.
  • Capitan Mining Inc. reported results for four reverse circulation drill holes from the Capitan deposit at its Peñoles project in Durango. Highlighted intervals comprise 56.4 m @ 0.58 gpt Au, 14 gpt Ag (including 10.7 m @ 0.99 gpt Au, 16 gpt Ag); 38.1 m @ 0.26 gpt Au; 6.1 m @ 0.28 gpt Au, 5 gpt Ag; 187.5 m @ 0.23 gpt Au, 1 gpt Ag (including 29.0 m @ 0.51 gpt Au, 3 gpt Ag); 10.7 m @ 0.25 gpt Au, 4 gpt Ag; 41.1 m @ 0.24 gpt Au, 5 gpt Ag. Capitan Mining expects to complete a 6,000 m reverse circulation program during the summer whilst continuing exploration work on additional targets.
  • Guanajuato Silver Company Ltd. provided drilling results from El Pinguico, Guanajuato. Highlighted core length results comprise 1.65 m @ 2.45 gpt Au, 125 gpt Ag; 7.95 m @ 1.35 gpt Au, 39 gpt Ag (including 0.75 m @ 8.81 gpt Au, 208 gpt Ag); 8.10 m @ 1.00 gpt Au, 93 gpt Ag (including 0.90 m @ 5.96 gpt Au, 476 gpt Ag). GS Silver is planning a 3,800 m 18-hole strong drill program, with the aim of estimating resources.
  • Fabled Silver Gold Corp. announced results from underground drilling at the Santa Maria property in Chihuahua. Results comprise 9.90 m @ 0.08 gpt Au, 17 gpt Ag, minor (<0.1%) Pb-Zn-Cu; 1.20 m @ 0.08 gpt Au, 13 gpt Ag, minor Pb-Zn-Cu; 18.0 m @ 0.24 gpt Au, 20 gpt Ag, minor Pb-Zn-Cu; 2.40 m @ 0.06 gpt Au, 36 gpt Ag, minor Pb-Zn-Cu; 0.80 m @ 0.24 gpt Au, 302 gpt Ag, 0.1% Pb, 0.25% Zn; 6.30 m @ 0.04 gpt Au, 17 gpt Ag, minor Pb-Zn-Cu.

ON DEALS AND CORPORATE ISSUES

  • Excellon Resources Inc. informed on the legal action regarding the Antigua concession within its Evolution project in Durango. A subsidiary of Excellon, San Pedro Resources SA de CV has been mandated in court to pay US$23 M in damages for not having in operation the Miguel Auza mine. “Excellon understands from an initial electronic notice that San Pedro’s appeal of this decision to the federal courts of Mexico was dismissed on July 1, 2021, despite the decision not being supported by the evidence, facts or law”.

ON SOCIAL RESPONSIBILITY

  • Fresnillo PLC informed on the re-activation of sports programs in Coahuila.
  • Minera Autlán supports an environmental project in Hidalgo.
  • Fresnillo PLC backs the environment in Durango, aiding the El Porvenir sustainable forest.
  • Newmont Peñasquito installed a solar powered pumping system at El Nuevo Vergel, Zacatecas.

On the image below:  Structure in andesitic rocks exposed on a road cut in Sonora. Picture by Jorge Cirett.

The Mining and Exploration News in Mexico: Highlights on the Second Week of June, 2021

By Jorge Cirett

During the 23rd week of the year (June 7th to June 13th, 2021), at least 25 press releases were announced by companies working in Mexico. To note, six companies posted exploration advances on their properties, three posted on financing ($2.6M, $1.43 M, C$11.5 M) and one on a debt settlement with shares, six more on project development or resource definition and three posted on deals or corporate issues. ON MEXICO ISSUES, The bodies of seven miners killed on a coal mine collapse in Coahuila have been recovered. ON EXPLORATION, in Baja, Comet Resources commenced a drill program at Santa Teresa. In Sonora, Minaurum is re-commencing drilling at its Alamos Silver project; Silver Spruce commenced phase II ground exploration at Jackie; Tarachi Gold released RC drilling results from La Dura mine at its Tarachi project. Radius gold released ground exploration results from Maricela. In Sinaloa, Kootenay Silver released good drilling results at Copalito.  ON MINING, no relevant news. ON FINANCING, Santacruz Silver settled a C$4.5 M debt by issuing shares to debtors. Three companies informed on financing rounds: Silver Viper Minerals ($1.4 M, aggregate $6 M), Mammoth Resources ($2.6 M) and Defiance Silver (C$11.5 M). ON RESOURCES AND DEVELOPMENT, GR Silver Mining reported drill results from Plomosas, in Sinaloa. Endeavour Silver released high-grade intercepts at Terronera, Jalisco. Advance Gold released (low) lithium drilling results from the Saldivar Salar in San Luis Potosi. GoGold Resources reported drilling results from Los Ricos North in Jalisco. Golden Tag Resources released drilling results from a bulk tonnage target at San Diego, Durango. Golden Minerals reported assay results from expansion drilling at Rodeo, Durango.  ON DEALS AND CORPORATE ISSUES, Millrock Resources and Tocvan Ventures signed a letter of commitment in relation to El Picacho project in Sonora. Telson Mining completed its change name to Altaley Mining. VanGold Mining announced its name change to Guanajuato Mining. ON SOCIAL RESPONSIBILITY, Peñoles and Fresnillo PLC informed on actions the companies realize to help the environment. Mazapil inhabitants evaluated the water quality they receive with Minera Peñasquito support.

ON MEXICO ISSUES

  • The bodies of six of seven miners have been recovered after the collapse of a coal mine in Coahuila.
  • Luisa María Alcalde, head of the Secretariat of Work and Social Prevision informed the mine collapse in Coahuila that caused several fatalities was due to strong rains in the region.

ON EXPLORATION

  • Kootenay Silver Inc. released results from five holes at its Copalito project in Sinaloa. The holes are from the 5 Señores vein, which has now been tested on 600 m of its 1 km known extension. Highlighted core length results comprise 35 m @ 75 gpt Ag, 0.6 gpt Au, 0.1% Pb+Zn (126 gpt AgEq) which include 1.70 m @ 43 gpt Ag, 2.56 gpt Au, 0.8% Pb+Zn (218 gpt Ag) and 1.31 m @ 264 gpt Ag, 0.23 gpt Au, 2.3% Pb+Zn (326 gpt AgEq); 19.43 m @ 218 gpt Ag, 0.83 gpt Au, 1.5% Pb+Zn (306 gpt AgEq) including 7.97 m @ 330 gpt Ag, 1.23 gpt Au, 2.0% Pb+Zn (456 gpt AgEq); 15.0 m @ 61 gpt Ag, 0.75 gpt Au, 0.4% Pb+Zn (119 gpt Ag) including 2.0 m @ 220 gpt Ag, 3.79 gpt Au, 0.4% Pb+Zn (475 gpt AgEq); 12.0 m @ 66 gpt Ag, 0.17 gpt Au, 0.8% Pb+Zn (96 gpt AgEq) including 2.20 m @ 241 gpt Ag, 0.42 gpt Au, 0.8% Pb+Zn (289 gpt AgEq); 10.0 m @ 65 gpt Ag, 0.11 gpt Au, 0.3% Pb+Zn (79 gpt AgEq) including 1.68 m @ 210 gpt Ag, 0.45 gpt Au, 0.4% Pb+Zn (248 gpt AgEq).
  • Minaurum Gold Inc. informed on rig mobilization to its Alamos silver property in Sonora. “Drilling will focus on defining emerging silver shoots in previously explored veins as well as discovering new shoots in underexplored veins. Drill targets will be 100- to 150-metre step-outs of, up- and down-dip, and along-strike of mineralized vein zones, with allowances made for plunging shoots. Minaurum is also continuing reconnaissance work to the south and west in the Alamos project to develop new target veins for later drilling”. Some of the zones to be tested include the Europa-Guadalupe, San José, Minas Nuevas, Alessandra, Ana, Promontorio, Púlpito and Cotera.
  • Comet Resources Ltd. Commenced a 2,000 m diamond drilling program at Santa Teresa, in Baja California. This is the first drilling program since Premier Gold tested the property in 2008.
  • Radius Gold Inc. defined high grade and bulk tonnage targets at its Maricela project in Sonora. Rock chip sampling returned up to 3 m @ 4.46 gpt Au, 1,335 gpt Ag; 22.0 m @ 0.15 gpt Au, 39 gpt Ag; 4 m @ 1.23 gpt Au, 111 gpt Ag at Baby Gloria, 25.3 m @0.31 gpt Au, 62 gpt Ag; 10 m @ 0.62 gpt Au, 142 gpt Ag at Virgen de Plata, 4 m @ 0.45 gpt Au, 98 gpt Ag; 10.5 m @ 0.50 gpt Au, 105 gpt Ag at EL Arco; 6 m @ 1.03 gpt Au, 417 gpt Ag at Central. “The project hosts an epithermal silver & gold mineralized vein system extending approximately 1.5km long by 300m wide, within which occurs multiple veins, stockworks and breccias which at intersections have exposed widths +25 meters. Recent mapping and sampling (273 rock chips) identified 6 major veins with combined strike approximately of 5km”.
  • Silver Spruce Resources Inc. commenced phase II ground exploration at the 1,130 ha Jackie property in Sonora. “The work will be performed on a 100-hectare section of the Property with grid-controlled detailed geological mapping and rock sampling focused on a 25-hectare central block covering the core of the gold and silver discovery area with additional wider spaced grid mapping of the surrounding area”.
  • Tarachi Gold Corp. released results from surface reverse circulation holes drilled on La Dura mine within the Jabali concession at the Tarachi project in Sonora. Highlighted hole-length intervals comprise 3.0 m @ 0.63 gpt Au, 9.0 m @ 0.22 gpt Au, 3.0 m @ 0.37 gpt Au, 3.0 m @ 2.35 gpt Au; 1.50 m @ 1.56 GPT Au; 12.0 m @ 7.26 gpt Au (including 6.0 m @ 12.2 gpt Au); 3.0 m @ 1.68 gpt Au, 12.0 m @ 0.23 gpt Au. “The drill program tested the down-dip and potential southern plunge in areas of known gold bearing structures”. 

ON MINING

  • No relevant news.

ON FINANCING

  • Santacruz Silver Mining Ltd. announced the settling of a debt of C$4.47 M by issuing 10.3 M shares to Empresa Minera Manquiri S.A. and Minas Guilloyna S.A. de C.V. (Zimapan, Hidalgo).
  • Mammoth Resources Corp. closed its previously announced oversubscribed non-brokered private placement financing to raise up to $2.6 M in gross proceeds (Tenoriba, Chihuahua).
  • Silver Viper Minerals Corp. closed the final tranche of its non-brokered private placement for aggregate proceeds of $1.43 M. Aggregate profits under the offering were $6 M (La Virginia, Sonora).
  • Defiance Silver Corp. closed the previously announced brokered private placement for Gross proceeds of C$11.5 M (San Acacio, Zacatecas; Tepal, Michoacan).

ON RESOURCES AND DEVELOPMENT

  • GR Silver Mining Ltd. reported drill results from the Plomosas project in Sinaloa. Highlighted true width (TW) intercepts on the northern portion of the Plomosas mine area of polymetallic hydrothermal breccia comprise 16.2 m @ 75 gpt Ag, 0.25 Au, 0.7% Pb, 0.8% Zn, 0.1% Cu (including 5.8 m @ 171 gpt Ag, 0.41 gpt Au, 1.1% Pb, 0.7% Zn, 0.2% Cu); 7.6 m @ 227 gpt Ag, 0.27 gpt Au, 1.7% Pb, 1.4% Zn, 0.1% Cu; 10.7 m @ 12 gpt Ag, 2.48 gpt Au, 1.1% Pb, 1.5% Zn (including 1.5 m @ 17 gpt Ag, 15.81 gpt Au, 1.1% Pb, 3.9% Zn); 3.6 m @ 100 gpt Ag, 0.14 gpt Au, 0.2% Pb, 1.1% Zn, 0.5% Cu; 21.0 m @ 25 gpt Ag, 0.67 gpt Au, 1.6% Pb, 2.4% Zn, 0.1% Cu).
  • Endeavour Silver Corp. announced high-grade intercepts in a number of structures near the Terronera vein at Terronera, Jalisco. True width intercepts comprise 1.12 m @ 0.32 gpt Au, 170 gpt Ag; 2.14 m @ 3.97 gpt Au, 73 gpt Ag; 5.59 m @ 2.17 gpt Au, 177 gpt Ag; 1.35 m @ 9.78 gpt Au, 214 gpt Ag at San Simón, 1.41 m @ 2.20 gpt Au, 54 gpt Ag; 2.88 m @ 6.05 gpt Au, 1,056 gpt Ag; 1.98 m @ 3.38 gpt Au, 347 gpt Ag; 1.39 m @ 2.04 gpt Au, 66 gpt Ag at Fresno, 1.08 m @ 2.63 gpt Au, 25 gpt Ag at Lindero, 1.08 m @ 1.09 gpt Au, 445 gpt Ag at Pendencia, and 1.95 m @ 9.52 gpt Au, 148 gpt Ag; 1.07 m @ 2.81 gpt Au, 54 gpt Ag at Los Cuates.
  • Advance Gold Corp. announced results from four core holes at its Saldivar Salar in San Luis Potosí. One hole averaged 84 m @ 136 ppm Li (232 ppm peak value), 225 ppm B, 1.3 % K; a second hole averaged 77 m @ 142 ppm Li (229 ppm peak value), 213 ppm B, 1.3% K; a third hole averaged 53 m @ 130 ppm Li (214 ppm peak value), 230 ppm B, 1.2% K; a fourth hole returned 50 m @ 137 ppm Li (231 ppm peak value), 226 ppm B, 1.4% K. 
  • GoGold Resources Inc. released results from drilling on El Orito prospect at it Los Ricos North project in Jalisco. Highlighted core length intersections comprise 9.5 m @ 20 gpt Ag, 0.03 gpt Au, 0.10% Cu, 0.3% Pb, 0.7% Zn; 12.4 m @ 38 gpt Ag, 0.08 gpt Au, 0.23% Cu, 2.1% Pb, 3.8% Zn (including 2.6 m @ 93 gpt Ag, 0.09 gpt Au, 0.61% Cu, 5.3% Pb, 9.9% Zn); 3.0 m @ 222 gpt Ag, 1.93 gpt Au, 0.29% Cu, 2.7% Pb, 0.1% Zn; 44.3 m @ 23 gpt Ag, 0.04 gpt Au, 0.08% Cu, 0.7% Pb, 1.2% Zn (including 4.9 m @ 44 gpt Ag, 0.16 gpt Au, 0.16% Cu, 2.5% Pb, 3.5% Zn); 26.6 m @ 14 gpt Ag, 0.04 gpt Au, 0.07% Cu, 1.1% Pb, 1.3% Zn (including 5.1 m @ 38 gpt Ag, 0.17 gpt Au, 0.20% Cu, 4.5% Pb, 1.9% Zn); 29.4 m @ 36 gpt Ag, 0.06 gpt Au, 0.23% Cu, 2.2% Pb, 4.1% Zn; (including 6.3 m @ 90 gpt Ag, 0.09 gpt Au, 0.65% Cu, 5.2% Pb, 9.5% Zn); 23.0 m @ 61 gpt Ag, 0.08 gpt Au, 0.40% Cu, 2.4% Pb, 4.9% Zn; 58.0 m @ 31 gpt Ag, 0.04 gpt Au, 0.19% Cu, 1.2% Pb, 2.6% Zn. “mineralization averaging approximately 30m in width for more than 700m in strike length and up to approximately 300m in vertical depth from surface and is open in all directions….. The known strike length of the El Orito – El Favor structure is now approaching 2,500 meters and is still open in both directions”.
  • Golden Tag Resources Ltd. released results from a diamond hole at the Trovador zone of its San Diego project in Durango. Highlighted results comprise 8.40 m @ 0.58 gpt Au, 30 gpt Ag, 0.3% Pb, 0.4% Zn, 0.09% Cu; 86.64 m @ 0.03 gpt Au, 39 gpt Ag, 0.9% Pb, 0.6% Zn; 169.83 m @ 0.04 gpt Au, 32 gpt Ag, 0.6% Pb, 0.8% Zn, 0.05% Cu (including 14.47 m @ 0.03 gpt Au, 81 gpt Ag, 1.9% Pb, 2.2% Zn, 0.12% Cu); 116.45 m @ 0.03 gpt Au, 42 gpt Ag, 0.6% Pb, 0.7% Zn; 2.71 m @ 0.05 gpt Au, 97 gpt Ag, 0.5% Pb, 3.1% Zn, 0.35% Cu.
  • Golden Minerals Co. released initial results from its expansion drill program at its Rodeo open pit mine in Durango. Highlighted results comprise 14.65 m @ 3.94 gpt Au, 8 gpt Ag; 9.30 m @ 5.38 gpt Au, 10 gpt Ag; 3.70 m @ 7.02 gpt Au, 21 gpt Ag (including 0.90 m @ 21.09 gpt Au, 50 gpt Ag); 13.75 m @ 2.64 gpt Au, 10 gpt Ag, 6.35 m @ 1.41 gpt Au, 36 gpt Ag; 3.80 m @ 2.69 gpt Au, 26 gpt Ag.
  • GR Silver Mining Ltd. reported drill results from high-grade epithermal veining from La Colorada and San Juan veins at Plomosas, Sinaloa. Highlighted core length intervals comprise 9.0 m @ 710 gpt Ag, 1.82 gpt Au, 1.1% Pb, 0.3% Zn, 0.1% Cu (including 0.7 m @ 8,519 gpt Ag, 18.77 gpt Au, 8.9% Pb, 0.7% Zn, 0.2% Cu); 33.0 m @ 20 gpt Ag, 0.11 gpt Au, 0.5% Pb, 0.3% Zn; 11.1 m @ 139 gpt Ag, 0.69 gpt Au, 0.1% Pb, 0.2% Zn; 7.0 m @ 341 gpt Ag, 1.00 gpt Au, 0.2% Pb, p.6% Zn; 2.1 m @ 480 gpt Ag, 0.05 gpt Au, 0.2% Pb, 0.2% Zn. “The La Colorada vein is a hydrothermal breccia that contains Au-Ag-Pb-Zn values in a mineralized quartz and hematite matrix. It is hosted in andesite and ignimbrite country rock. Sphalerite, galena and acanthite (Ag-bearing mineral) are found in the quartz veins.”.

ON DEALS AND CORPORATE ISSUES

  • Millrock Resources Inc. signed a letter of commitment with Tocvan Ventures Corp. in relation to 2,414 ha El Picacho gold project in Sonora, west of the San Francisco mine. Tocvan must make make cash payments of US$2 M to the underlying concession owners over a five-year term to acquire 100% interest in the project, pay back taxes and Millrock is to retain a 2% NSR, of Which Tocvan may purchase back 1% for US$1 M.
  • Telson Mining Corp. is completing its name change to Altaley Mining Corp. on June 11, 2021 (Campo Morado, Guerrero).
  • VanGold Mining Corp. announced the name change to Guanajuato Mining Corp. to be effective from June 10, 2021 (El Cubo and El Pinguico, Guanajuato).

ON SOCIAL RESPONSIBILITY

  • Peñoles and Fresnillo PLC informed on actions the companies realize to help the environment.
  • Mesas Mazapil inhabitants informed on the supervision they do on the water source delivered by Minera Peñasquito.

On the image below:  Felsic volcanic rocks autobreccia with hematite rich matrix in Sinaloa. Picture by Jorge Cirett.