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The Mining and Exploration News in Mexico: Highlights on the Fourth Week of August 2024

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By Jorge Cirett                                             

By Jorge Cirett                                              During the 34th week of the year (August 19th to August 25th,2024), companies working in Mexico posted at least 20 press releases. Three companies informed on exploration advances on their properties, three companies provided operational/financial results for the quarter, one informed on a major mill repair and one more on a mandated suspension of activities. One company granted stock options, one drew a final loan, one informed on its TSX listing and one more on a short base prospectus. One company released a revised PEA on its property and one more informed on district wide exploration and regional exploration plays. ON MEXICO ISSUES, the ambassadors of USA and Canada made clear their opposition to the judicial reform proposed by the sitting Mexican president. ON EXPLORATION, In Sonora, Colibri Resource reported on exploration at its El Plomo property in Sonora. In Chihuahua, Radius Gold informed on drilling results at Plata Verde. In Guerrero, Pantera Silver is evaluating options to restart exploration at its Nuevo Taxco project. ON MINING, Endeavour Silver informed on the repair of a mill and temporary measures to keep production ongoing at Guanaceví, in Durango. Starcore International, Sailfish Royalty and Impact Silver informed on quarterly production/financial details. Starcore International suspend mining operations at San Martin in Queretaro on safety grounds after a government inspection. ON FINANCING, Barksdale Resources granted stock options. Bear Creek Mining drew a final US$750 K from a promissory note. Vizsla Royalties is now listing in the TSX. Guanajuato Silver Company filed a final short base prospectus to offer up to US$65 M. ON RESOURCES AND DEVELOPMENT, Oroco Resources released a revised PEA on Santo Tomás, in Sinaloa. Vizsla Silver provided an update on its exploration plans at its Panuco project and two more regional plays in Sinaloa. ON DEALS AND CORPORATE ISSUES, Barksdale Resources appointed Dr. Quinton Hennigh to its board. Ranchero Gold signed a LOI on the sale of the Santa Daniela project in Sonora. Atacama Copper is changing its name to Fuerte Metals. ON SOCIAL RESPONSIBILITY, Discovery Silver released its 2023 ESG report.

ON MEXICO ISSUES

  • Ken Salazar, USA ambassador in Mexico released a letter on which criticizes the Mexican president’s proposal for reform of the Judicial system. The ambassador pointed out the problems that will arise if the proposal is passed as is, bringing a major risk to democracy in Mexico and threaten the historic trade relationships with USA. (Note by editor. – The proposal envisages the selection system for federal judges and magistrates changing from one based on professional examinations to one based on the popular vote, among other bizarre directives aimed to control the judiciary system by the executive branch).
  • Graeme Clark, Canada ambassador in Mexico stated that Canadian investors are at crossroads before the probable passing in Congress of the Judicial Reform proposed by the sitting president AMLO. According to CanCham (Cámara de Comercio de Canadá en México) 40% of Canada’s investments in Mexico are on the mining sector.  

ON EXPLORATION

  • Pantera Silver Corp. is currently evaluating options to restart exploration at the Nuevo Taxco project in Guerrero. “…work will likely focus on initial sampling and mapping in the “Southwest Zone” of the Nuevo Taxco concession”. Pantera Silver is pursuing potential acquisitions, aiming to build a portfolio of 2-3 high-quality projects, focused on silver.
  • Colibri Resource Corp. reported results of geological mapping and outcrop sampling on 4,766 ha El Plomo property at the EP project, located 25 km east of Fresnillo plc´s La Herradura mine. At the San Perfecto target mineralization is hosted by a silicified and sericitized moderately to strongly foliated diorite with quartz micro-veinlets in higher-grade samples. Of 29 rock samples recently collected, 14 returned more than 0.1 gpt Au, 9 greater than 0.5 gpt Au and 6 with more than 1.0 gpt Au. More than 616 historical samples yielded results with over 50% above 0.1 gpt Au and 15% with more than 1 gpt Au, peaking at 58.9 gpt Au. “The footprint of mineralization at San Perfecto is now approximately 1,250 m by 700m”. At La Culebra target 34 grab samples were collected, with 14 returning more than 0.1 gpt Au and five more than 1.0 gpt Au peaking at 4.64 gpt Au. “Mineralization is hosted by rusty zones which were mapped over a 650 m strike length in a northeast direction and coincident with an andesite-rhyolite contact”.
  • Radius Gold Inc. announced initial results on the exploration program at Plata Verde, in Chihuahua. The first four holes cut several zones of low-grade Ag mineralization “and indicate limited potential for an economic discovery in the eastern extension of silver mantos”. Assays are pending on four holes in the western side of the valley, with thicker favorable basaltic rock and improved visual mineralization. The most recent hole located further northwest “intersected visually improved results, cutting through greater width of basaltic host and encountering visibly the most attractive mineralization seen so far in this drilling program”. The JV partnership is extending the planned program, adding three additional drill holes.  

ON MINING

  • Endeavour Silver Corp. informed processing resumed at the Guanacevi mine in Durango, after the primary ball mill trunnion failure. Temporary modifications re-purposed one of the re-grind mills as the primary ball mill, which is running at 400 tpd (name plate capacity 1,200 tpd) during this temporary phase. “Contract mining activities and local third-party material purchases will cease until the process plant operations have returned to full capacity”. Initial quotes obtained point to a 16-weeks fabrication and installation period. During this period Guanacevi production is estimated to decrease by 0.9 M to 1.1 M Oz Ag and by 2,000 to 3,000 Oz Au.
  • Starcore International Mines Ltd. announced production results for the first fiscal quarter ended July 2024. At San Martin, in Zacatecas, 49.5 K tonnes were milled, averaging 1.92 gpt Au, 20 gpt Ag, recovering 85.2% Au, 56.9% Ag, to produce 2,841 Oz AuEq. Starcore expects to start industrial testing of carbonaceous ore in September.
  • Impact Silver Corp. announced financial and operating results for the second quarter of 2024. The company’s revenue in the quarter was C$7.7 M, also during the period a non-brokered “LIFE” and a private placement of C$8.6 M were completed, holding C$9.9 M in cash by the end of the quarter. At Zacualpan, in Estado de Mexico, 35.1 K tonnes averaging 161 gpt Ag were processed to produce 152.2 K Oz Ag. Over the last six months 5,243 m of drilling have been completed at Zacualpan. At Plomosas, in Chihuahua, 9.26 K tonnes were milled during the period, and the company expects to end the third quarter with a production rate in the 150-170 tpd range. Over the first half of the year the average grade has been 14% Zn, 8.7% Pb, 43.7 gpt Ag; during the same period 14,377 m of drilling have been completed.
  • Sailfish Royalty Corp. announced its operating and financial results for the second quarter 2024, from its operations outside Mexico (Gavilanes, Durango).
  • Starcore International Mines Ltd. suspended temporarily mining operations at its San Martin mine in Queretaro. “An unscheduled inspection at the mine conducted by the Mexican Labor Department identified safety standards that need to be met before resuming operations. The inspection followed a recent singular fatality at the mine, the first one in 18-1/2 years of Starcore’s record of zero fatalities in its mining operations at San Martin”.

ON FINANCING

  • Barksdale Resources Corp. granted stock options to certain directors, officers, employees and consultants of the company to acquire 5 M common shares (San Javier, Sonora).
  • Bear Creek Mining Corp. announced the drawn down of US$750 K in funds related to the promissory note issued to the company to Sandstorm Gold Ltd., and under which Sandstorm can elect convert the amounts drawn into common shares of Bear Creek. An aggregate of US$2.62 M has been drawn down under the additional credit for a total principal amount of US$21.64 M (Mercedes, Sonora).
  • Vizsla Royalties Corp. is now listing on the TSX Venture Exchange as a Tier 2 issuer and its shares are expected to commence trading on August 26, 2024 (Panuco, Sinaloa).
  • Guanajuato Silver Company Ltd. filed and received a receipt for a final short base prospectus that allows the company to offer up to US$65 M of common shares, debt securities, warrants, subscription receipts, share purchase contracts and units during the 25-months period that the prospectus is effective (El Cubo, Guananjuato).

ON RESOURCES AND DEVELOPMENT

  • Oroco Resources Corp. announced a revised preliminary economic assessment (PEA) and updated mineral resource estimate for the North and South zones of its Santo Tomas project in Sinaloa. The study envisages a NPV (8%) of US$2.64 B pre-tax and US$1.48 B post-tax, an internal rate of return of 30.3% pre-tax, and 22.2% post-tax, total LOM (life on mine) production of 4.8 B Lb Cu, a pre-tax payback of 2.9 years, post-tax payback of 3.8 years from first concentrate production. Estimated initial capital costs of US$1.1 B and sustaining and expansion capital costs at US$1.73 B. producing at cash cost US$1.54 per Lb Cu on by-product basis, with average CuEq grade of 0.51% on the first 7 years of production. The Santo Tomas deposit has 540.6 M tonnes @ 0.33% Cu, 0.008% Mo, 0.028 gpt Au, 2.1 gpt Ag as indicated resources containing 3.98 B Lb Cu, 95.4 M Lb Mo, 483.4 K Oz Au, 36.5 M Oz Ag and 530.8 M tonnes @ 0.31% Cu, 0.007% Mo, 0.023 gpt Au, 1.9 gpt Ag as inferred resources, containing 3.67 B Lb Cu, 84.4 M Lb Mo, 387.1 K Oz au, 33.2 M Oz Ag.
  • Vyzsla Silver Corp. provided an update on resource potential expansion potential and outline its exploration plans at its Panuco project in Sinaloa. The key exploration objectives for 2024 include 10,000 m of exploration drilling in the central-east area of the district, completing +5,000 m of resource expansion drilling in Copala Central, complete VTEM, airborne mag and radiometric surveys on 950 line-km, advance mapping coverage to 70% of the district and finish an updated resource estimate in Q4 2024. Exploration in the district central and east areas already has a handful of targets with outcropping silver mineralized veins. Two greenfields projects to explored include La Garra-Metates district, covering 16,962 ha, located 32 km NW from Panuco and San Enrique, adjacent to the south of Panuco and covering 10,667 ha. 

ON DEALS AND CORPORATE ISSUES

  • Barksdale Resources Corp. appointed Dr. Quinton Hennigh to its board of directors (San Javier, Sonora).
  • Ranchero Gold Corp. entered into a letter of intent (LOI) to sell its Mexican subsidiary Minera y Metalurgica Paika, S.A. de C.V. to an arm’s length party purchaser for nil consideration. The sale includes water rights and four mining concessions covering 16,876 ha on the Santa Daniela project, in Sonora, and a conditional payment of US$2.5 M that will offset liabilities in Paika of $3.55 M of land fee payments and accrued interest due, along with a potential finder’s fee related to the conditional payment.
  • Atacama Copper Corp. has changed its name to Fuerte Metals Corp., with its shares expected to commence trading under the new name on August 26, 2024 (Cristina, Chihuahua).

ON SOCIAL RESPONSIBILITY

  • Discovery Silver Corp. released its 2023 environmental, social and governance (ESG) report, highlighting purchases for $19.2 M in goods and services from Mexican businesses, $5.0 M paid in salaries and benefits to 69 local employees, of which 85% are local; $195 K of direct community investments and 21.1 GJ of renewable solar energy (Cordero, Chihuahua).

On the image below: Strong chlorite-epidote alteration in intrusive rock with two parallel quartz veinlets, one bearing molybdenite, HQ core. Picture by Jorge Cirett.

The Mining and Exploration News in Mexico: Highlights on the Third Week of March, 2024

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Mn-Fe veinlets hosted in rhyolites

By Miguel A Heredia

During the 12th week of the year (March 18th to March 24th, 2024), at least 18 press releases were announced by companies working in Mexico, with seven communicating production results, four disclosing deals and corporate issues, four announcing financing issues, two reporting resources and developments of their projects, and one commenting on Mexican issues.  ON MEXICO ISSUES, Vizsla reported the best drilling intercepts in Mexico on the third week of March, 2024. ON EXPLORATION, no relevant news. ON MINING, Sierra Metals reported Q43 and year-end 2023 production results from its Bolivar mine in Chihuahua, and provided production and cost guidance for 2024. Starcore reported Q3 results ended January 31, 2024 from its San Martin mine in Queretaro. Avino reported Q4 and full year 2023 production and financial results (Avino mine, Durango). Golden Minerals released consolidated financial results from Rodeo and Velardeña mines, both located in Durango State. Orla reported Q4 and full year 2023 production and financial results from its Camino Rojo mine in Zacatecas. Orogen announced preliminary 2023 full year financial results. MAG Silver reported 2023 annual production and financial results from its Juanicipio mine in Zacatecas.  ON FINANCING, Bear Creek Mining has drawn down USD $750K for a total principal amount of USD $19,767,612.35 outstanding under the Sandstorm Promissory Note (Mercedes mine, Sonora). Americas Gold and Silver firstly announced a private placement for gross proceeds of CAD $6.5M and later increased it to CAD $7.5M (Cosala mine, Sinaloa). Sailfish declared Q1, 2024 dividend. ON RESOURCES AND DEVELOPMENT, Tocvan reported that it is advancing a significant gold-silver land package in Sonora, Mexico (Pilar project). Vizsla released results from 27 new infill and expansion drill holes targeting the Copala resource area at its flagship Panuco project, Sinaloa. ON DEALS AND CORPORATE ISSUES, Bear Creek granted 500K stock options to its CFO, exercisable at CAD $0.245 per share (Mercedes mine, Sonora). Atacama Copper retained Cascade Corporate Consulting for investor relations services (Las Cristinas project, Chihuahua). Colibri announced that it will retain 49% interest in Pilar project in Sonora and will enter into a JV.  Sailfish announced termination of share purchase option agreement with CMC.  ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUE

  • Vizsla Silver Inc., reported the best drilling intercepts in Mexico on the third week of March, 2024. Details are shown in the table below:

ON EXPLORATION

  • No relevant news.

ON MINING

  • Sierra Metals Inc., reported Q43 and year-end 2023 production results from its Bolivar mine in Chihuahua and provided production and cost guidance for 2024 (All currency amounts are expressed in US dollars). In Q4, 2023, the company processed 409,995 tonnes to produce 9,150,000 Lb CuEq at cash and all in sustaining costs of $1.90 and $3.47 per Lb CuEq payable respectively. Sierra Metals reported cost of sales of $23,243,000 and a total cash cost of $19,035,000. In the full year 2023, the company processed 1,477,889 tonnes to produce 34,579,000 Lb CuEq at cash and all in sustaining costs (AISC) of $1.87 and $3.29 per Lb CuEq payable respectively. Sierra Metals reported cost of sales of $82,188,000 and a total cash cost of $66,381,000. Sierra Metal provided production and cost guidance for 2024. It estimated to produce between 23,900,000-27,600,000 Lb CuEq, 650K-750K Oz Ag, and 8000-9,200 Oz Au at cash and AISC of $2.56-$272 and $3.28-$3.36 per Lb Cu Eq respectively.
  • Starcore International Mines Ltd., reported Q3 results ended January 31, 2024 from its San Martin mine in Queretaro. The company processed 52,700 tonnes of 1.58 g/t Au and 15 g/t Ag with metallurgical recoveries of 89.1% and 50.3% respectively to produce 2.4K Oz Au and 12.4K Oz Ag (2.5K Oz AuEq) at mine operating cash and AISC of USD $1,674 and USD $2,156 per Oz AuEq respectively. Starcore reported revenue of CAD $6,784,000 and earnings of CAD $795,000.
  • Avino Silver & Gold Mines Ltd., reported Q4 and full year 2023 production and financial results from its Avino mine in Durango (all currency amounts are expressed in US dollars). In Q4, 2023 the company milled 143,738 tonnes to produce 224.7K Oz Ag, 1,452 Oz Au, and 1.32M Lb Cu (558.5K Oz AgEq) at cash and AISC of $15.04 and $21.67 per Oz AgEq payable respectively. Avino sold 548K Oz AgEq in this period. It also reported revenue of $12.53M; mine operating income of $2.6M; net income of $0.6M, EBITDA of $1.1M, and adjusted earnings of $2M. In the full year 2023, the company milled 615,373 tonnes to produce 928.6K Oz Ag, 7,335 Oz Au, and 5.3M Lb Cu (2.4M Oz AgEq) at cash and AISC of $15.61 and $21.87 per Oz AgEq payable respectively. Avino sold 2.1M Oz AgEq in this period. It also reported revenue of $43.9M; mine operating income of $7.8M; net income of $0.5M, EBITDA of $2.5M, and adjusted earnings of $4.6M.
  • Golden Minerals Company released consolidated financial results from Rodeo and Velardeña mines, both located in Durango State (all figures are expressed in US dollars). The company reported revenue of $12M; cost of metals sold of $12.4M; other operating income of $2.3M; net loss of $9.2M or $1.08 per share; cash and equivalents balance of $3.8M; debts was zero; cash inflows of $9.7M; and total expenditures of $9.9M. Rodeo mine concluded operations in June 2023 and finished processing stockpiled material in September 2023, while Velardeña began mining activities in December 2023 given newer favorable concentrate terms, positive results of testing activities and of recent metallurgical and economic analyses, but operations were subsequently shut down in late February 2024 after the initial performance of the mine and processing plant did not achieve expected results.
  • Orla Mining Ltd., reported Q4 and full year 2023 production and financial results from its Camino Rojo mine in Zacatecas (all amounts expressed in US dollars). In the period Q4, 2023, the company produced 34,484 Oz Au and sold 31,300 Oz Au at cash and AISC per Oz Au of $536 and $802 respectively, and at an average realized Au price of $1,974 per Oz Au. It also reported revenue of $629M; net income of ($58.4M); adjusted earnings of $15.7M; adjusted earnings per share of $0.05; cash flow from operating activities of $24.7M; free cash flow of ($8.2M); cash and cash equivalents of $96.6M; and net cash (debts) of $8.3M. In the full year 2023, the company produced 121,877 Oz Au and sold 118,993 Oz Au at cash and AISC per Oz Au of $506 and $736 respectively, and at an average realized Au price of $1,941 per Oz Au. It also reported revenue of $233.6; net income of ($27M); adjusted earnings of $47.8M; adjusted earnings per share of ($0.09); cash flow from operating activities of $68.9M; free cash flow of $23.6M; cash and cash equivalents of $96.3M; and net cash (debts) of ($49.5M).
  • Orogen Royalties Inc., announced preliminary Q4 and 2023 full year financial results (all figures are in Canadian dollars). The Company’s royalty portfolio includes the Ermitaño gold and silver Mine in Sonora, Mexico (2.0% NSR royalty) operated by First Majestic Silver Corp.  For the period Q4, 2023, Orogen reported royalty revenue of $1.8M and for the full year 2023 of $5.9M. According to First Majestic, forecasted production guidance from the Santa Elena mine complex in 2024 is 81,000 to 90,000 ounces gold and 1.1 to 1.2 million ounces silver, with over 90% of the production from the Ermitaño mine. The Company estimates that this will result in royalty revenues between $4.5M and $5.0M based on gold price of USD $2,000 per Oz.  
  • MAG Silver Corp., reported 2023 annual production and financial results on a 100% basis from its Juanicipio mine in Zacatecas (44% MAG/56% Fresnillo plc) (all amounts are reported in $000´s of US dollars). The company mined 1,097,289 tonnes and processed 1,268,757 tonnes of 472 g/t Ag, 1.27 g/t Au, 1.1% Pb, and 2% Zn to produce 15.3M Oz Ag, 31.73K Oz Au, 25.9M Lb Pb, and 36.9M Lb >Zn at cash and AISC of $6.07 and $10.32 per Oz Ag sold respectively. The company also reported  a net income of $48,659 ($0.47 per share) (equity accounted) of $65,099; and adjusted EBITDA of $97,480; operating cash flow and free cash flow of $145,064 and $60,814 respectively; cash balances of $42,913; and Interest and loan principal repayments returned to MAG during 2023 totalled $33,354.

ON FINANCING

  • Bear Creek Mining Corporation has drawn down USD $750K for a total principal amount of USD $19,767,612.35 outstanding under the Sandstorm Promissory Note. Sandstorm has provided additional credit of up to USD $375K per month until August 2024, with the option to convert the drawn amounts in common shares, and will be used for continuing exploration work at its Mercedes mine in Sonora and general working capital purposes.
  • Americas Gold and Silver Corporation announced a private placement of up to 21,667,000 units of the company at a price of CAD $0.30 per unit for gross proceeds of CAD $6.5M, and later on it increased to 25,000,000 units of the company at a price of CAD $0.30 per unit for gross proceeds of CAD $7.5M. Each unit will be comprised of one common share of the company and one common share purchase warrant of the company. Part of the gross proceeds will be used for working capital requirements at its Cosala mine, Sinaloa, and for general and administrative purposes.
  • Sailfish Royalty Corp., declared Q1, 2024 dividend and announced termination of share purchase option agreement with CMC. Its Board of Directors has declared the Company’s first quarterly cash dividend for 2024 in the amount of USD $0.0125 per common share that will be payable on April 15, 2024 to Sailfish shareholders of record as of the close of business on March 31, 2024.

ON RESOURCES AND DEVELOPMENT

  • Tocvan Ventures Corp., reported that it is advancing a significant gold-silver land package in Sonora, Mexico, particularly focusing on the Pilar Project spanning over 22 square kilometers. With extensive drilling and exploration efforts, the company aims to transition towards production by developing mine permits, conducting an extensive drill program, and evaluating new target areas. Positioned in a mining-friendly jurisdiction with quality assets and surrounded by operational mines, Tocvan is poised to become a key player in the region’s mining sector.
  • Vizsla Silver Corp., released results from 27 new infill and expansion drill holes targeting the Copala resource area at its flagship Panuco project, Sinaloa. Drilling highlights (true widths reported) include holes CS-24-342 with 487 g/t Ag and 3.69 g/t Au (703 g/t AgEq) over 6m, plus 252 g/t Ag and 1.25 g/t Au (317 g/t AgEq) over 0.95m, plus 304 g/t Ag and 1.01 g/t Au (347 g/t AgEq) over 0.55m, and plus 1,435 g/t Ag and 3.83 g/t Au (1,576 g/t AgEq) over 0.6m; hole COP-2023-001 with 240 g/t Ag and 1.61 g/t Au (332 g/t AgEq) over 13.6m, including 1,075 g/t Ag and 11.55 g/t Au (1,793 g/t AgEq) over 1.1m, plus 508 g/t Ag and 1.19 g/t Au (547 g/t AgEq) over 0.80m; hole COP-2023-004 with 318 g/t Ag and 5.23 g/t Au (658 g/t AgEq) over 5.1m, including 338 g/t Ag and 16 g/t Au (1,436 g/t AgEq) over 0.28m, including 1,270 g/t Ag and 13.45 g/t Au (0.96 g/t AgEq) over 0.96m; and hole CS-24-339 with 738 g/t Ag and 2.28 g/t Au (832 g/t AgEq) over 2.92m, plus 267 g/t Ag and 0.87 g/t Au (304 g/t AgEq) over 0.8m. “The reported drilling, designed to both infill and expand mineralization, successfully confirmed high-grade continuity throughout Copala and extended mineralization by ~100m down dip to the southeast”.

ON DEALS AND CORPORATE ISSUES

  • Bear Creek Mining Corporation granted 500K stock options to its CFO, exercisable at CAD $0.245 per share, exercisable on or before March 19, 2034 (Mercedes mine, Sonora).
  • Atacama Copper Corporation retained Cascade Corporate Consulting Ltd for investor relations services to aid the company in building awareness in the financial community by maintaining relationships between the management of the company and investors (Las Cristinas project, Chihuahua).
  • Colibri Resource Corporation announced that it will retain 49% interest in Pilar project in Sonora and will enter into a JV on a 51% Tocvan / 49% Colibri basis to advance the project.
  • Sailfish Royalty Corp., announced the termination of the share purchase option agreement between the Company and CMC Metals Ltd pursuant to which the Company granted CMC the option to acquire all of the issued and outstanding shares of Swordfish Silver Corp. which, through Sailfish de Mexico S.A. de C.V., holds the mineral rights in and to the silver exploration project located in the Municipality of San Dimas, State of Durango, Mexico, known as the Gavilanes property. CMC has purported to unilaterally terminate the Agreement. The Company has accepted the termination and has engaged experienced litigation counsel in British Columbia to review this matter and seek all available remedies including damages

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, Mn-Fe veinlets hosted in rhyolites in an intermediate sulphidation epithermal vein system in a project in Chihuahua, Mexico. Photo taken by Miguel A Heredia.