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The Mining and Exploration News in Mexico: Highlights on the Second Week of February, 2024

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Silica sinter

By Miguel A Heredia

During the 6th week of the year (February 5th to February 11th, 2024), at least 25 press releases were announced by companies working in Mexico, and 3 news published by the media with eight reporting resources and developments of their projects, six announcing financing issues, five disclosing deals and corporate issues, four commenting on Mexican issues, two communicating production results, two informing on exploration results, and one discussing social issues.  ON MEXICO ISSUES, Analysts announced that Q4, 2023 reports will be disparate on the Stock Market.  President Andrés Manuel López Obrador (AMLO) has presented 20 proposals for constitutional reforms in Mexico. AMLO presented initiative to prohibit open pit mining. Orla Mining, First Majestic, Prismo Metals, and Prime Mining reported the best drilling intercepts in Mexico on the second week of February, 2024. ON EXPLORATION, In Sinaloa, Prismo provided an exploration update on its Palos Verdes project.  In Durango, Silver Dollar acquired from Canasil a 100% interest in the Nora project, and provided a project update. ON MINING, Argonaut announced that it will report Q4 and year-end 2023 production and financial results of their Mexican operations on March 6, 2024. GoGold released Q1, 2024 production and financial results from its Parral Tailings project, Chihuahua. ON FINANCING, Capstone and Orion closed its previously announced CADS $431M bought deal offering (Cozamine mine, Zacatecas). Defiance announced a non-brokered private placement for gross proceeds of up to CAD $3M (San Acacio project, Zacatecas). Kootenay increased the size of its previously announced non-brokered private placement to $3.5M (Columba project, Chihuahua). Sonoro announced a non-brokered private placement for gross proceeds of up to CAD $1M (Cerro Caliche project, Sonora).  Regency Silver extended the closing its private placement (Dios Padre project, Sonora).  Zacatecas Silver upsized and closed its previously announced private placement from $1.8M to $2.5M (Zacatecas Silver project, Zacatecas). ON RESOURCES AND DEVELOPMENT, Luca Miningprovided an update progress at its Tahuehueto property in Durango. Avino presented the results of the Pre Feasibility (PFS) for its Oxide Tailings project at its Avino mine operation in Durango. Sierra Madre provided an update on La Guitarra mine in the State of Mexico. Heliostar announced that it is evaluating test mining scenarios for its Ana Paula project, Guerrero in 2024. Orla concluded its 2023 Camino Rojo Sulphides Infill program in Zacatecas with strong results.  Prime Mining released results from the 2023 drilling program at the Z-T Area within its Los Reyes project, Sinaloa. First Majestic reported positive exploration results from their San Dimas property in Durango, and Santa Elena property in Sonora. Torex provided a Q4, 2023 update on its Media Luna project in Guerrero.   ON DEALS AND CORPORATE ISSUES, Capstone announced that it has commenced trading on the Australian Securities Exchange (Cozamin mine, Zacatecas). Colibri appointed Douglas Coleman to its Advisory Board (Evelyn project, Sonora).  Fabled Silver terminated its letter of intent with Kootenay with respect to the proposed acquisition the Mecatona Property, Chihuahua. Luca Mining appointed a new member to its Board of Directors (Tahuehueto project, Durango). Defiance clarified technical disclosures pertaining to its technical reports related to their Tepal project, Michoacan and San Acacio project, Zacatecas. ON SOCIAL RESPONSIBILITY, Fortuna Silver announced its objectives, metrics, and targets to reduce Scope 1 and Scope 2 greenhouse gas (GHG) emissions (San Jose mine, Oaxaca).

ON MEXICO ISSUE

  • Analysts predict that the fourth quarter of 2023 will be a mixed bag for Mexican mining companies due to pressures on costs and falling prices of industrial metals. While some companies may benefit from increasing prices of precious metals like gold and silver, others will also face higher costs. Grupo Mexico has already reported weak financial results due to decreased sales of copper, while the other companies are expected to face similar challenges in 2024 due to China’s economic slowdown. Only Minera Frisco has generated a positive return so far this year among the four mining companies. Autlán is expected to make some sequential improvements due to cost-cutting efforts, but the industry as a whole is predicted to face challenges in the coming year. All of last year, only the companies that are part of the S&P/BMV stock index IPC Grupo México (+37.66%) and Peñoles (+3.58%) had gains on the Stock Market. While the share of Fresnillo, a subsidiary of Peñoles listed on the London Stock Exchange, lost 34.08%, that of Autlán lost 26.43% and that of Frisco lost 9.01%.
  • President Andrés Manuel López Obrador (AMLO) has presented 20 proposals for constitutional reforms in Mexico. One of the proposals is to return the Comisión Federal de Electricidad (CFE) to its status as a public, strategic, and nationally important company.  AMLO also proposes to prohibit the extraction of hydrocarbons through hydraulic fracturing (fracking) and to not grant concessions to private companies for open-pit mining activities. However, in the economic budget planned for 2024, the government has contemplated two projects with fracking for MXP $4.63M, according to data from the organization Mexican Alliance against Fracking (AMCF). Currently, of the almost 250 mines that operate in the country, 97 are open pit metal mines and 152 more are underground mines; However, until March 2022, 15,551 mining concessions were registered in the country with validity after 2050. It should be noted that since the arrival of AMLO to the presidency, not a single mining concession has been granted, which has led the sector to have a drop in investment that decreased its participation in the national GDP, from 2.50 in 2021 to 2.46 percent in 2022, while in industrial GDP from 8.78% to 8.63%. The proposed reforms also aim to eliminate “costly and elitist” dependencies and organizations that were supposedly autonomous but disconnected from the interests of the people. Some of the autonomous bodies that could be affected by these proposals include the Comisión Reguladora de Energía (CRE), Comisión Nacional de Hidrocarburos (CNH), and Comisión Federal de Competencia Económica (COFECE). AMLO will submit these initiatives to the Chamber of Deputies for discussion in the current or next legislative session.
  • President Andrés Manuel López (AMLO) presented initiative to prohibit open pit mining. On February 5, on the anniversary of the Political Constitution of the United Mexican States, AMLO presented an Initiative with a Draft Decree to carry out various reforms, one of these being the prohibition of open pit mining. According to the initiative, addressed to Dip. Marcela Guerra Castillo, President of the Chamber of Deputies, in order to protect the environment and health, we seek to modify art. 27 constitutional to “prohibit both the granting of concessions and the activities of exploration, exploitation, benefit, use or exploitation of minerals, metals or metalloids in the open pit, with the addition that the people who carry out these activities will be sanctioned.” The AMLO project indicates that there are currently around 264 open pit mines in Mexico, and much emphasis is placed on the old vision of predatory mining, leaving aside that for a mine to operate in our country it must have more than a thousand rules and regulations, in addition to having comprehensive closure plans.
  • Orla Mining Ltd., First Majestic Silver Corp., Prismo Metals Inc., and Prime Mining Corp., reported the best drilling intercepts in Mexico on the second week of February, 2024. Details are shown in the table below:

ON EXPLORATION

  • Prismo Metals Inc., provided an exploration update on its Palos Verdes project in Sinaloa.  Following the completion of its third drill campaign with 2,923 meters drilled in 15 holes, and in preparation of the upcoming expanded drill program to be drilled from Vizsla Silver Corp, Prismo completed an alteration and geochemical study that confirmed a downward offset of the mineralized ore shoot defined by drilling to date and that a second blind mineralized shoot may exist to the northeastern portion of the Palos Verdes vein, based on a geochemical sampling which revealed high-grade silver, gold, zinc, and lead values in the vein system.  The best sample from this program assayed 930 g/t silver and 10.55 g/t gold with 15.4% zinc and 4.5% lead (2,605 g/t Ag/Eq) over 0.5m. The company plans to conduct deep drilling from Vizsla Silver’s ground to explore these concepts further.
  • Silver Dollar Resources Inc., acquired from Canasil a 100% interest in the Nora project in Durango, and provided a project update. In connection with the acquisition of the Nora property, Silver Dollar encountered certain unresolved discrepancies in verifying the 2020 and 2021 drill results Canasil reported on the Nora property. For gold: of the 157 samples duplicated, Canasil reported 42 samples >1 g/t Au (1.23 – 43.7 g/t) including 18 samples >5 g/t (5.3 – 43.7 g/t), whereas Silver Dollar’s re-assaying yielded only three samples >1 g/t Au (1.04, 1.75, and 2.30 g/t). For silver: of the 157 samples duplicated, Canasil reported 44 samples >200 g/t Ag (133 -1,924 g/t) including 19 samples >500 g/t Ag (504 – 1,925 g/t), whereas Silver Dollar’s re-assaying yielded only three samples >100 g/t Ag (129, 158, and 448 g/t). “The QPs from both companies discussed the situation and recommended a further analytical program be carried out to provide some insight into what may have caused the assay discrepancies. However, Canasil did not have the financial resources to contribute to the recommended program and alternatively offered to waive certain of Silver Dollar’s consideration obligations under the Nora Option Agreement and transfer 100% ownership of the Nora property to Silver Dollar for the consideration that has been provided to date (as detailed below), subject to a 2% net smelter returns royalty with Silver Dollar having the right to buy back 1% of the Royalty for $1M. As of the date hereof, Silver Dollar has incurred a total of approximately $134,779 in exploration expenditures on the Nora property, as full consideration for the acquisition thereof. Silver Dollar is not required to provide any further consideration to Canasil to complete the acquisition and the transfer of the Nora concessions to Silver Dollar has been initiated”.

ON MINING

  • Argonaut Gold Inc., announced that it will report Q4 and year-end 2023 production and financial results of their Mexican operations on March 6, 2024.
  • GoGold Resources Inc., released Q1, 2024 production and financial results from its Parral Tailings project, Chihuahua. The company produced 109K Oz Ag, 1,848 Oz Au, and 212.8K Lb Cu (300,260 Oz AgEq). It also reported a revenue of USD $6.8M on the sale of 305,087 Oz AgEq, at a realized price of USD $22.28 per Oz Ag, and an adjusted cash cost and all in sustaining cost of USD $16.83 and USD $24.64 per Oz AgEq respectively ; a net income of USD $192K; and a cash of USD $88.8M.

ON FINANCING

  • Capstone Copper Corp., and Orion Fund JV Limited, Orion Mine Finance Fund II LP and Orion Mine Finance (Master) Fund I-A LP (collectively, Orion) closed its previously announced bought deal offering of common shares of Capstone by a syndicate of underwriters, which consisted of a total of 68,448,000 common shares at a price of CAD $6.30 per common share, which included the exercise in full of the Underwriters’ over-allotment option of 8,928,000 common shares from the company, for aggregate gross proceeds under the offering of CAD $431,222,400 (Cozamine mine, Zacatecas).
  • Defiance Silver Corp., announced a non-brokered private placement for gross proceeds of up to CAD $3M. The offering is priced at $0.10/unit. Each unit shall consist of one common share of the company and one half of one common share purchase warrant. Net proceeds will be used for exploration of the company’s projects and for general working capital purposes (San Acacio project, Zacatecas).
  • Kootenay Silver Inc., increased the size of its previously announced non-brokered private placement to $3.5M, at a price of $0.75 per unit. The net proceeds from the offering will be used for exploration activities, property commitments on the company’s projects, working capital and general corporate purposes (Columba project, Chihuahua).
  • Sonoro Gold Corp., announced a non-brokered private placement offering consisting of up to 22,222,222 units at a price of CAD $0.45 per unit for gross proceeds of up to CAD $1M. Net proceeds will be used to fund the ongoing development of the company’s Cerro Caliche gold project in Sonora, Mexico as well as working capital.
  • Regency Silver Corp., extended the closing its previously announced private placement dated January 17, 2024 (Dios Padre project, Sonora).
  • Zacatecas Silver Corp., upsized and closed its previously announced private placement from $1.8M to $2.5M. The Company will now proceed to immediately close the financing, by way of receiving subscription agreements and funds and intends to close within the next week. The Company intends to use the net proceeds to satisfy ongoing costs associated with its properties as well as general working capital purposes (Zacatecas Silver project, Zacatecas). 

ON RESOURCES AND DEVELOPMENT

  • Luca Mining Corp., provided an update progress at its Tahuehueto property in Durango. The project to increase throughput at the Tahuehueto mill to 1,000 tonnes per day is in the final commissioning stage. The testing of the second ball mill is well advanced and will provide a total installed grinding capacity of 1,250 tonnes per day. Once the second mill is commissioned, production will ramp up and progressively increase to 35,000-40,000 oz AuEq per year.
  • Avino Silver & Gold Mines Ltd., presented the results of the Pre Feasibility (PFS) for its Oxide Tailings project at its Avino mine operation in Durango. Highlights include a NVP of USD $98M (pre-tax) and USD $61M (after-tax) at a 5% discount rate; an IRR of 35% (pre-tax) and 26% (after-tax); a payback period of 2.9 years (pre-tax) and  3.5 years (after-tax); an initial capital cost of USD $49.1M, including a contingency provision in the amount of USD $5.3M; the ongoing sustaining capital cost is USD $5.1M; On-site Operating Costs (OOC) and All-In Sustaining Cost (AISC) of USD $9.71 and USD $10.23 per Oz AgEq respectively; proven and probable mineral reserves of 6.70M tonnes at a silver and gold grade of 55 g/t and 0.47 g/t respectively; metal recoveries: 77.2% Ag and 74.9% Au; Doré production: Total 9,073,000 Oz Ag and 76,000 Oz Au, life-of-project (averaging 1,008,000 Oz Ag and 8,445 Oz Au per year); and the project will generate USD $52.4M in tax contributions to the local economy and government.
  • Sierra Madre Gold and Silver Ltd., provided an update on La Guitarra mine in the State of Mexico. The company has retained TechSer Mining Consultants Ltd., to complete the Mine Restart Study (MRS), which include an estimation of underground mine material for the Guitarra, Coloso and Nazareno mines and the Los Angeles bulk tonnage deposit. The   MRS is expected to be completed in Q2 of this year. On the other hand, work has been ongoing to determine necessary steps for the potential re-start of production. In accordance with recommendations made by officials with the Secretaria de la Defensa Nacional, SEDENA, improvements to the underground powder magazines have been completed. Finally, all circuits in the processing plant are undergoing maintenance and rehabilitation work which would be required for the resumption of operations. In the grinding circuit, the three ball mills are being relined, all parts of the central drive shaft mechanisms overhauled, and the motors cleaned and tested. A fourth ball mill with limited capacity will not be rebuilt at this time.
  • Heliostar Metals Ltd., announced that it is evaluating test mining scenarios for its Ana Paula project, Guerrero in 2024. The company is exploring the potential to complete the existing underground decline at the Ana Paula deposit in Guerrero, to enable test mining of a bulk gold sample. This would help de-risk the underground plan for Ana Paula while creating a potential pathway to production from test mining in 12 months. The company has initiated a Preliminary Economic Assessment (PEA) for completion in H2, 2024, and will continue resource growth drilling. Heliostar is assessing non-equity funding options for this program and has held discussions with potential offtake partners. Multiple scenarios indicate the potential to recover more than 20K Oz Au from a bulk sample from stocks averaging 7-10 g/t Au.
  • Orla Mining Ltd., concluded its 2023 Camino Rojo Sulphides Infill program in Zacatecas with strong results. Drilling highlights of the remaining unreported 14 holes completed as part of the 52 drill holes, 35,070 m infill program are shown in the table below:

“A preliminary underground resource estimate on the Camino Rojo Sulphides is eagerly anticipated to be completed in the second half of 2024. Metallurgy evaluation on the recent phase of Camino Rojo sulphide infill drilling is expected to continue throughout 2024”.

  • Prime Mining Corp., released results from the 2023 drilling program at the Z-T Area within its Los Reyes project, Sinaloa. Highlights of the drilling are shown in the table below:

“Ongoing drilling at Z-T aims to extend the high-grade shoots that remain open at depth, as well as following up on the newly discovered mineralization along strike”.

  • First Majestic Silver Corp., reported positive exploration results from their San Dimas property in Durango, and Santa Elena property in Sonora. At San Dimas, Durango, exploration drilling intersected significant gold and silver mineralization in multiple veins at Sinaloa North-Elia, Santa Teresa, Rosario and Perez Areas. Drilling highlights (true widths reported) include holes ST23-014 with 7.03 g/t Au and 903 g/t Ag (1,466 g/t AgEq) over 0.78m, plus 3.95 g/t Au and 270 g/t Ag (586 g/t AgEq) over 1.86m, plus 2.07 g/t Au and 130 g/t Ag (296 g/t AgEq) over 2.90m, plus 40.40 g/t Au and 2,092 g/t Ag (5,324 g/t AgEq) over 0.91m; hole SIN23-073 with 13.50 g/t Au and 1,007 g/t Ag (2,087 g/t AgEq) over 0.7m, plus 11.83 g/t Au and 758 g/t Ag (1,681 g/t AgEq) over 2.97m: hole PE23-225 with 1.6 g/t Au and 243 g/t Ag (371 g/t AgEq) over 0.77m, plus 14.18 g/t Au and 2,439 g/t Ag (3,574 g/t AgEq) over 1.03m, plus 3.78 g/t Au and 4.21 g/t Ag (723 g/t AgEq) over 7.78m, plus 9.16 g/t Au and 242 g/t Ag (974 g/t AgEq) over 0.84m, plus 1.33 g/t Au and 293 g/t Ag (293 g/t AgEq) over 0.96m; and hole PE23-242 with 7.36 g/t Au and 1,238 g/t Ag (1,826 g/t AgEq) over 2.41m. At Santa Elena, Sonora, the drilling program designed to convert Mineral Resources to Mineral Reserves at the Ermitaño mine, cut multiple high-grade intersections of gold and silver mineralization. Drilling highlights (true widths reported) include holes EWUG-23-012 with 7.02 g/t Au and 189 g/t Ag (750 g/t AgEq) over 10.05m, plus 20.95 g/t Au and 311 g/t Ag (1,987 g/t AgEq) over 4.88m, plus 7.99 g/t Au and 187 g/t Ag (826 g/t AgEq) over 2.38m; hole EWUG-23-007 with 4.51 g/t Au and 155 g/t Ag (516 g/t AgEq) over 8.18m, plus 4.33 g/t Au and 88 g/t Ag (434 g/t AgEq) over 3.93m, plus 18.50 g/t Au and 304 g/t Ag (1,784 g/t AgEq) over 1.71m, plus 7.44 g/t Au and 107 g/t Ag (702 g/t AgEq) over 1.32m; and hole EWUG-23-15 with 9.38 g/t Au and 230 g/t Ag (980 g/t AgEq) over 5.23m, plus 3.43 g/t Au and 192 g/t Ag (466 g/t AgEq) over 1.63m.
  • Torex Gold Resources Inc., provided a Q4, 2023 update on its Media Luna project in Guerrero.  In Q4 2023, Torex Gold’s Media Luna Project made significant progress towards completion. During Q4 2023, USD $124M was invested in the project, the highest quarterly spend to date. Total spend in 2023 was USD $366.3M, in line with revised annual project guidance of USD $360 to USD $390M. USD $350 to USD $400M has been guided for project capital expenditures in 2024, with quarterly expenditures through Q3 2024 expected to be similar to the level experienced in Q4 2023, before declining as the project nears completion. The project was 60% complete, with detailed engineering at 84% and procurement at 63%. Underground development and construction advanced, with the Guajes Tunnel breakthrough achieved ahead of schedule. Operational readiness activities continued, and the project remained on track for first concentrate production in late 2024 and commercial production in early 2025. Funding has exceeded remaining capital expenditures, and the project execution plan remains unchanged, with only minor adjustments to interim activities.

ON DEALS AND CORPORATE ISSUES

  • Capstone Copper Corp., announced that it has commenced trading on the Australian Securities Exchange (ASX) (Cozamin mine, Zacatecas). Capstone was admitted to the official list of ASX on January 31, 2024, and will trade under the ticker symbol “CSC” (ASX: CSC).
  • Colibri Resource Corporation appointed Douglas Coleman to its Advisory Board (Evelyn project, Sonora).
  • Fabled Silver Gold Corp., terminated its letter of intent with Kootenay Silver Inc., with respect to the proposed acquisition the Mecatona Property, Chihuahua.
  • Luca Mining Corp., appointed a new member to its Board of Directors (Tahuehueto project, Durango).
  • Defiance Silver Corp., clarified technical disclosures pertaining to its technical reports entitled “NI 43-101 Technical Report Preliminary Economic Assessment on the Tepal Project, Michoacan” dated February 24, 2017 with an effective date of January 17, 2017, and its technical report entitled “Technical Report and Resource Estimate, San Acacio Silver Deposit, Zacatecas, Mexico” dated September 26, 2014, with an effective date of April 1, 2014. The company understands it will need to amend the technical reports accordingly.

ON SOCIAL RESPONSIBILITY

  • Fortuna Silver Mines Inc., announced its objectives, metrics, and targets to reduce Scope 1 and Scope 2 greenhouse gas (GHG) emissions by 15% in 2023 compared to the forecasted emissions in 2030 without intervention measures. The company is committed to supporting the global ambition of net-zero GHG emissions by 2050. To achieve the 2030 GHG emissions reduction target, Fortuna plans to implement projects such as providing renewable energy to its operations, providing low-carbon electricity, and constructing and modernizing mine paste fill plants. Fortuna is committed to monitoring the GHG emissions of each of its mines on a monthly basis, reviewing progress against GHG emissions reduction target and its pathway, and assessing potential climate-related risks and opportunities.

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, silica sinter in a low-sulphidation epithermal vein system in a project in Durango. Photo by Miguel A Heredia

The Mining and Exploration News in Mexico: Highlights on the Second Week of January, 2024

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Hydrothermal Breccia

By Miguel A Heredia

During the 2nd week of the year (January 8th to January 14th, 2023), at least 31 press releases were announced by companies working in Mexico, and 4 news published by the media, with nine communicating production results, eight disclosing deals and corporate issues, six reporting resources and developments, five announcing financing issues, five commenting on Mexican issues, and two informing on exploration results. ON MEXICO ISSUES, German Larrea, owner of Grupo Mexico, announced that it is in a group of several companies interested in acquiring a copper mine of First Quantum Minerals in southern Spain. Grupo Mexico reported that it advances in the construction of three copper mining projects, with a combined production of 246,000 tons per year. The Mexican Mining Chamber (CAMIMEX) announced that Mexico will begin operations of four new gold mines in 2024. President of the Association of Mining Engineers, Metallurgists and Geologists of Mexico (AIMMGM) indicated that insecurity has affected the most important mining regions of Mexico such as Sonora, Chihuahua, Zacatecas, Guerrero and the State of Mexico, where companies have had to allocate between 5 and 10% more to their security budget to combat high insecurity rates. Prime Mining reported the best drilling intercepts in Mexico on the second week of January, 2024. ON EXPLORATION, In Sonora, Colibri and JV partner Silver Spruce filed an application to drill 10,000m on the Diamante project. In Sinaloa, Centenario announced that it completed 700m in 5 holes from its maiden drilling program at its Eden project in Sinaloa.  ON MINING, Agnico reported Q3, 2023 production and financial results from their Pinos Altos Mine in Chihuahua and La India Mine in Sonora. Alamos Gold announced Q4, 2023 production results and guidance for 2024, 2025 and 2026 (Mulatos Mine, Sonora). Aura reported Q4, 2023 production results from its Aranzazu Mine in Zacatecas. GoGold announced Q4, 2023 production from its Parral Tailings project in Chihuahua. Torex reported Q4 and full year 2023 production results from its El Limon-Guajes mine complex in Guerrero. Gatos Silver provided Q4 and full year 2023 production results from its Cerro Los Gatos mine, Chihuahua. Guanajuato Silver announced Q4, 2023 production results from their Mexican operations. Endeavour reported Q4 and full year 2023 production results from its Guanacevi and Bolañitos mines in Durango and Guanajuato respectively, and provided 2024 production and cost guidance.  ON FINANCING Fortuna paid down an additional USD $41M debt (San Jose Mine, Oaxaca). Guanajuato Silver announced that it has arranged a debt settlement of CAD $455K (El Cubo Mine, Guanajuato). Atacama closed the second tranche of its previously announced brokered private placement for gross proceeds of CAD $5.5M (Cristina and Yécora projects in Chihuahua and Sonora states respectively).  Orex closed one tranche of its non-brokered private placement for net proceeds of $183,750 (Sandra and Coneto projects, Durango). Centenario closed a non-brokered private placement for gross proceeds of $50K (Eden project, Sinaloa). ON RESOURCES AND DEVELOPMENT, Prime Mining released expansion and generative drill results from its 2023 drilling program at Los Reyes project, Sinaloa. Sonoran Desert completed sampling program at Cuatro Hermanos project, Sonora. Vizsla announced an update mineral resource estimate for its flagship Panuco project in Sinaloa. Heliostar filed an updated mineral resource estimate for its Ana Paula project in Guerrero. Silver Tiger provided a 2023 summary of activities and outlook for 2024 (El Tigre project, Sonora). Tocvan presented a 2023 summary of activities at their Picacho and Pilar projects in Sonora and plans for 2024.  ON DEALS AND CORPORATE ISSUES, Avino signed a long-term land-use agreement with a local community for the development of La Preciosa, Durango. Trident Royalties announced the acquisition of royalty assets from Avino on La Preciosa deposit in Durango by making a payment of USD $8.75M. CMC Metals entered into a share purchase agreement to acquire the mineral rights of the Gavilanes property in Durango.  Defiance announced the acquisition of 100% interest in Lucita property in Zacatecas and also reported that the terms of the San Acacio property agreement in Zacatecas were successfully renegotiated with the vendor. Impact announced that it has entered into a managed services contract with Bell International de Mexico / TTN Energia to provide  Tesla Battery Energy System with solar at its Plomosas mine in Chihuahua. Monumental retained Senergy Communications Capital Inc., to provide digital media and capital markets communications services to the company (Jemi HREE project, Coahuila). Ridgestone reported results from its annual general meeting of shareholders (Rebeico project, Sonora). Excellon provided a corporate update and outlook for 2024 (Platosa mine, Durango).  ON SOCIAL RESPONSIBILITY, No relevant news.

ON MEXICO ISSUE

  • German Larrea, owner of Grupo Mexico, announced that it is among several companies that are interested in acquiring a copper mine of First Quantum Minerals in southern Spain. First Quantum began a process to sell its Las Cruces mine in southern Spain in December after the sudden closure of the Panama copper mine left the company against financial uncertainty. The Las Cruces mine would give Grupo México, the conglomerate controlled by Mexican billionaire Germán Larrea, another opportunity to expand in Europe after he failed to acquire a different Spanish copper mining complex in 2021. Copper assets have attracted the interest of mining companies that expect demand to increase as a result of the energy transition, and the upward perspectives have already caused an increase in negotiations.
  • Grupo Mexico reported that it advances in the construction of three copper mining projects, with a combined production of 246,000 tons per year: a greenfield project located approximately 45Km from the Buenavista del Cobre mine containing estimated proven and probable reserves of 317M tonnes of 0.249% Cu, with an estimated production of 36K tonnes of Cu cathodes per year by 2024; El Pilar mine, and open pit with an annual production capacity of 36K tonnes of Cu cathodes, which is expected to begin production in 2024 with an expected useful life of 13 years; and El Arco, Baja California, a world-class deposit with mineral reserves of > 1,230M tonnes with an average grade of 0.4% and 141 M tonnes of leachable material with an ore grade of 0.27% Cu. El Arco includes an open pit mine with a estimated production of 190K tonnes of Cu and 105K Oz Au annually.
  • The Mexican Mining Chamber (CAMIMEX) announced that Mexico will begin operations of four new gold mines in 2024: Media Luna in Guerrero of Torex Gold Resource Inc.; Cerro de Oro in Zacatecas of Minera Alamos Inc., with an expected production within the first four years of 60K to 70K Oz Au and subsequent production of 58.4K Oz Au, a useful life of 8.2 years,  a scheduled investment of USD $150.5M, and a start of operations expected in the second half of 2024; Terronera in Jalisco of Endeavour Silver Corp., located in Jalisco, with an investment of USD $175M and a production estimated at 33K Oz Au; and Cerro Caliche in Sonora of Sonoro Gold with an investment of USD $26M for a production of around 45K Oz Au. These projects will together produce 323,400 Oz Au annually and total an investment of USD $1,146M.
  • President of the Association of Mining Engineers, Metallurgists and Geologists of Mexico (AIMMGM) indicated that insecurity has affected the most important mining regions of Mexico such as Sonora, Chihuahua, Zacatecas, Guerrero and the State of Mexico, where companies have had to allocate between 5 and 10% more to their security budget to combat high insecurity rates. Under this panorama, the Fraser Institute of Canada placed Mexico as the fourth most unsafe country in Latin America to carry out mining activity, only below Venezuela, Colombia and Nicaragua. Globally, the Institute placed Mexico in 73rd place out of 84 jurisdictions evaluated in terms of investment attraction.

Prime Mining Corp., reported the best drilling intercepts in Mexico on the second week of January, 2024. Details are shown in the table below:

ON EXPLORATION

  • Colibri Resource Corporation and JV partner Silver Spruce Resources Inc., filed at SEMARNAT (The Mexico Environment Authority), an application to drill 10,000m on the Diamante project. The company expects to receive the authorization within the next three weeks and anticipates that the drilling program will begin soon after the receipt of the permit.
  • Centenario Gold Corp., announced that it completed 700m in 5 holes from its maiden drilling program at its Eden project in Sinaloa. Results from the first 3 holes are expected to be released prior to the end of January. All holes on this initial phase of the program target the strike and downdip extensions of the central portion of the ‘Buenavista’ mineralized structure.  

ON MINING

  • Agnico Eagle Mines Limited reported Q3, 2023 production and financial results from their Pinos Altos Mine in Chihuahua and La India Mine in Sonora. At Pinos Altos Mine, Chihuahua, the company milled 450K tonnes of 1.84 g/t Au to produce 25,386 Oz Au, at a production costs per tonne of USD $89; minesite costs per tonne of USD $85; production costs of USD $1,581 per Oz Au produced; and total cash costs of USD $1,310 per Oz Au produced. At La India Mine, Sonora, the company milled 970K tonnes of 1.1 g/t Au to produce 22,269 Oz Au, at a production costs per tonne of USD $29; minesite costs per tonne of USD $27; production costs of USD $1,271 per Oz Au produced; and total cash costs of USD $1,156 per Oz Au produced.
  • Alamos Gold Inc., announced Q4, 2023 production results and guidance for the next three years 2024-2026. The company produced 48K Oz Au at Mulatos Mine, Sonora, and expects to produce in 2024 between 160K-170K Oz Au in 2024, at a total cash and all in sustaining cost per Oz Au of USD $825-875 and USD $1125-$1,175 respectively; to produce in 2025 between 120K-130K Oz Au at a total cash and all in sustaining cost per Oz Au of USD $700-800 and USD $1050-$1,150 respectively;  and between 120K-130K Oz Au in 2026, at a total cash and all in sustaining cost per Oz Au of USD $675-775 and USD $975-$1,075 respectively.
  • Aura Minerals Inc., reported Q4, 2023 production results from its Aranzazu Mine in Zacatecas. It produced 7,061 Oz Au, 130,370 Oz Ag, and 9.6K Lb Cu for a total of 26,532 Oz AuEq.
  • GoGold Resources Inc., announced Q4, 2023 production from its Parral Tailings project in Chihuahua. The company produced 109,016 Oz Ag, 1,848 Oz Au, and 212.8K Lb Cu (300,260 Oz AgEq).
  • Torex Gold Resources Inc., reported Q4 and full year 2023 production results from its El Limon-Guajes mine complex in Guerrero. The company mined 19,404 tonnes per day in Q4, 2023 and 11,976 tonnes per day in the fiscal year 2023, with metallurgical recoveries of 89.5% and 88.6% respectively. Torex produced 137,993 Oz Au in Q4, 2023 for a total of 453,778 Oz Au in the full year of which sold 138,794 Oz Au in Q4, 2023 for a total of 444,750 Oz Au in the full year.
  • Gatos Silver Inc., provided Q4 and full year 2023 production results from its 70% owned Cerro Los Gatos mine, Chihuahua. On a 100% basis, the company milled during Q4, 2023 over 277,318 tonnes of 318 g/t Ag, 3.9% Zn, 1.9% Pb, and 0.3 g/t Au with metallurgical recoveries of 90.3%,61.8%, 89.8%, and 51.6% respectively, to produce  2.56M Oz Ag, 14.6M Lb Zn, 10.2M Lb Pb, and 1.4K Oz Au. During the full year 2023, the company  milled over 1,071,400 tonnes of 299 g/t Ag, 3.9% Zn, 1.8% Pb, and 0.29 g/t Au with metallurgical recoveries of 89.4%,62.1%, 88.7%, and 52.4% respectively, to produce  9.21M Oz Ag, 57.3M Lb Zn, 38.9M Lb Pb, and 5.26K Oz Au.
  • Guanajuato Silver Company Ltd., announced Q4, 2023 consolidated production results from their Mexican operations (El Cubo, Valenciana and san Ignacio mines in Guanajuato, and Topia mine in Durango).  The company mined 133,497 tonnes and milled 137,339 tonnes to produce 394,971 Oz Ag, 4,395 Oz Au, 837.2K Lb Pb, and 960.2K Lb Zn.
  • Endeavour Silver Corp., reported Q4 and full year 2023 production results from its Guanacevi and Bolañitos mines in Durango and Guanajuato respectively, and provided 2024 production and cost guidance. During Q4, 2023, the company processed at Guanacevi mine, Durango over 110,781 tonnes of 419 g/t Ag and 1.2 g/t Au with metallurgical recoveries of 85.2% and 87% respectively to produce 1.27M Oz Ag and 3,771 Oz Au. Through the full 2023 year, the company processed 433,409 tonnes of 417 g/t Ag and 1.19 g/t Au with metallurgical recoveries of 88% and 90.5% respectively to produce 5.1M Oz Ag and 14.9K Oz Au.  During Q4, 2023, the company processed at Bolañitos mine, Guanajuato over 109,683 tonnes of 45 g/t Ag and 1.86 g/t Au with metallurgical recoveries of 84.8% and 89.5% respectively to produce 134.7K Oz Ag and 5,887 Oz Au. Through the full 2023 year, the company processed 440,973 tonnes of 47 g/t Ag and 1.82 g/t Au with metallurgical recoveries of 85.1% and 88.6% respectively to produce 567.5K Oz Ag and 22.9K Oz Au. Endeavour also provided 2024 production and cost guidance and expects to produce between 4.9-5.2M Oz Ag and 13-15K Oz Au at Guanacevi mine, Durango, while at Bolañitos mine, Guanajuato it expects to produce between 0.5-0.6M Oz Ag and 34-38K Oz Au.

ON FINANCING

  • Fortuna Silver Inc., paid down an additional USD $41M debt of its revolving credit facility at the end of the fourth quarter of 2023, using cash on hand (San Jose Mine, Oaxaca).
  • Guanajuato Silver Company Ltd., announced that it has arranged to settle an aggregate of CAD $455K in outstanding liabilities of the Company by the issuance of an aggregate of 1,780,000 common shares in the capital of the Company at a deemed price of $0.25 per share. The debt settlement includes the issuance of shares to certain of the Company’s suppliers totaling approximately CAD $405K and to three members of senior management totaling approximately CAD $40K (El Cubo Mine, Guanajuato).
  • Atacama Copper Corporation closed the second tranche of its previously announced brokered private placement for 30,782,634 subscription receipts at a price of CAD $0.18 per subscription receipt for gross proceeds of CAD $5.5M. The net proceeds of the concurrent financing will be used to advance exploration programs across the combined portfolio, with particular focus on Cristina project in Chihuahua and Yécora project in Sonora, and for general corporate purposes.
  • Orex Minerals Inc., closed one tranche of its non-brokered private placement by issuing 1,225,000 units at a price of $$0.15 per unit for net proceeds of $183,750 (Sandra and Coneto projects, Durango).
  • Centenario Gold Corp., closed a non-brokered private placement for gross proceeds of $50K through the issuance of 333,333 units at a price of $0.15 per unit.  Proceeds from this private placement will be used for exploration of the Eden project, Sinaloa and general working capital.

ON RESOURCES AND DEVELOPMENT

  • Prime Mining Corp., released expansion and generative drill results from its 2023 drilling program at Los Reyes project, Sinaloa. Drilling highlights (reported in true widths) include holes 23LP-18 collared at Las Primas Area with 11.60 g/t Au and 311 g/t Ag (15.63 g/t AuEq) over 4.50m, including 20.39 g/t Au and 551 g/t Ag (27.52 g/t AuEq) over 2.50m, including 41.90 g/t Au and 1,111 g/t Ag (56.28 g/t AuEq) over 1.05m; and hole 23GE-147 collared at Guadalupe East Area with 9.69 g/t Au and 639 g/t Ag (17.95 g/t AuEq) over 31.25m, including 29.41 g/t Au and 1,797 g/t Ag (52.67 g/t AuEq) over 6.45m, including 45.34 g/t Au and 2,723 g/t Ag (80.57 g/t AuEq) over 3.90m. “The incredibly high-grade intercepts at Guadalupe East are exciting from a resource expansion perspective. 23GE-147 lies almost entirely within the 2023 Economic Resource Pit”.
  • Sonoran Desert Copper Corporation completed sampling program at Cuatro Hermanos project, Sonora. A total of 82 rock samples were collected. At Noemi Zone, 10 samples collected returned Cu values ranging from 37.7 ppm to 1,915 ppm with an average value of 336.5 ppm Cu; Mo from 2.57 ppm to 67 ppm with an average value of 18 ppm Mo; Ag values from 1 ppm to 173 ppm with an average value of 45 ppm; and Au values from 0.02 ppm to 5.21 ppm with an average value of 1 ppm. At South Conglomerate Zone, 20 samples collected returned Cu values ranging from 102 ppm to 162,500 ppm with an average value of 17,363 ppm Cu; Mo values from 1.68 ppm to 49.8 ppm with an average value of 22.1 ppm Mo; Ag values from 0.21 ppm to 1.5 ppm with an average value of 0.9 ppm Ag. At Maine Zone, 6 samples collected returned Cu values ranging from 93.1 ppm to 274 ppm with an average value of 196.6 ppm Cu; Mo values from 4.13 ppm to 215 ppm with an average value of 100.1 ppm Mo; and Ag values from 0.05 ppm to 6.45 ppm with an average value of 1.7 ppm Ag. At West Zone, 6 samples collected returned Cu values ranging from 37.8 ppm to 2,750 ppm with an average value of 1,204.8 ppm Cu; Mo values from 17.25 ppm to 391 ppm with an average grade of 131.3 ppm Mo; and Ag values from 0.23 ppm to 3.6 ppm with an average value of 1.44 ppm Ag. At Cactus Zone, 3 samples collected returned Cu values ranging from 1,840 ppm to 67,900 ppm with an average value of 35.980 ppm Cu, Mo values from 132 ppm to 336 ppm with an average value of 217.5 ppm Mo; and Ag values from 8.17 ppm to 13.9 ppm with an average value of 10.6 ppm Ag. At San Lorenzo Zone, 37 samples collected returned Cu values ranging from 4 ppm to 22,500 ppm with an average value of 705 ppm Cu; Mo values from 0.14 ppm to 96.70 ppm with an average grade of 8.22 ppm; and Ag values from 0.01 ppm to 60 ppm with an average value of 2.46 ppm.
  • Vizsla Silver Corp., announced an update mineral resource estimate for its flagship Panuco project in Sinaloa. “Indicated Mineral Resources are estimated at 9.5 M tonnes grading 289 g/t Ag, 2.41 g/t Au, 0.27% Pb, and 0.84% Zn (511 g/t AgEq). The Updated Mineral Resource Estimate includes indicated mineral resources of 88.2M Oz Ag, 736K Oz Au, 56.9M Lb Pb, and 178.9M Lb Zn (155.8M Oz AgEq). Highlights of the Updated Mineral Resource Estimate include 48.7% increase in indicated mineral resources from 104.8 to 155.8M Oz AgEq; 48.7% increase in inferred mineral resources from 114.1 to 169.6Moz AgEq; 17% increase in average indicated mineral resource grade from 437 to 511 g/t AgEq; and new addition of La Luisa containing 4.0 M Oz AgEq indicated and 25.3M Oz AgEq of Inferred Resources. The Updated Mineral Resource represents less than 10% of the known vein strike of the newly consolidated district. 
  • Heliostar Metals Ltd., filed an updated mineral resource estimate for its Ana Paula project in Guerrero. Results were press released last November 27, 2023.
  • Silver Tiger Metals Inc., provided a 2023 summary of activities and outlook for 2024 (El Tigre project, Sonora). 2023 highlights include the closing of a $18M bought deal financing with a syndicate of underwriters led by BMO Capital Markets; 30,000m of drilling completed at El Tigre project in Sonora; the delivery of an updated mineral resource estimate for El Tigre at September 18, 2023; and the delivery of a Preliminary Economic Assessment in November 2023 with an NPV of USD $287M. The company also plans in 2024 to complete 25,000m of drilling during H1, 2024 with the $20.1M it has in cash as of September 30,2023; to deliver a Prefeasibility Study and an updated Mineral Resource Estimate during Q2-2024; and to deliver a Preliminary Economic Assessment for the permitted underground resource during Q3-2024. 
  • Tocvan Ventures Corp., presented a 2023 summary of activities at their Picacho and Pilar projects in Sonora and plans for 2024. At Picacho project, Sonora, the company made a discovery in first 1,000m, intercepting 0.6 g/t Au over 44.2m including 2 g/t Au and 7 g/t Ag over  12.2m, approximately 200m to the north where a hole intersected 0.5 g/t Au over 27.5m, including 1.1 g/t Au over 12.2m. At Pilar project, Sonora, Tocvan conducted a successful bulk sample of 1,400 tonnes with head grades of 1.9 g/t Au and 7 g/t Ag with an initial recovery of 62% for gold. Agitated bottle roll test of the bulk sample material returned 80% recovery of gold and 94% recovery of silver after a rapid 24-hour retention time. Additional surface and core composites from across Pilar returned 95 to 99% recovery of gold and between 73 to 97% recovery of silver through combined gravity and agitated leach processing.  An initial doré bar was later poured from the bulk sample material totalling 1.487 kilograms, containing 18% gold and 69% silver. A second gold-rich doré bar is scheduled to be poured this month. The company also consolidated the project area covering 22 square-kilometers and reported a trench sample results highlighted by 1.9 g/t Au and 9 g/t Ag over 20m. Plans for 2024 include a Resource infill and expansion drilling; a Maiden Resource Estimate in Q4, 2023; a Mine planning and design; submit applications for a MIA or Environmental Impact Statement, and an EJT or technical justification study; continue metallurgical testing; continue mapping and sampling on new expansion areas; conduct trenching and channel sampling of new targets; run geophysical surveys, including magnetics; and perform discovery drilling.

ON DEALS AND CORPORATE ISSUES

  • Avino Silver & Gold Mines Limited signed a long-term land-use agreement with a local community for the development of La Preciosa in Durango, which is located approximately 19Km from the current Avino Mine production operation.
  • Trident Royalties Plc., announced the acquisition of royalty assets from Avino Silver & Gold Mines Limited, comprising1.25% NSR covering La Gloria and Abundancia Veins at La Preciosa deposit in Durango, and a 2% gross value return royalty covering all other areas of La Preciosa by making a payment of USD $8.75M within 12 months of first silver production at La Preciosa.
  • CMC Metals Ltd., entered into a share purchase agreement to acquire all the issued and outstanding shares of Swordfish Silver Corp. , who, through Sailfish de Mexico S.A. de C.V., holds the mineral rights of the Gavilanes property in Durango.  The deal is subject to the TSX approval.
  • Defiance Silver Corp., announced the acquisition of 100% interest in Lucita property, Zacatecas from Pan American Silver Corp., by completing payments for USD $1.5M and Pan American retaining a 2% NSR. It also reported that the terms of the San Acacio property agreement in Zacatecas were successfully renegotiated with the vendor. “The project vendor has agreed to extend the option agreement terms by one year from September 27, 2023 to September, 27, 2024. Defiance will now be making quarterly payments, over the year, to the property vendor totaling USD $539,721.51, with the final option payment of USD $2,300,000 due September27, 2024. In accordance with the original agreement, the vendor retains a 2.5% NSR which may be purchased for USD $2,500,000”.
  • Impact Silver Corp., announced that it has entered into a managed services contract with Bell International de Mexico / TTN Energia for the planning, design, construction, and operation of Tesla commercial battery with solar at its Plomosas mine in Chihuahua.
  • Monumental Energy Corp., retained Senergy Communications Capital Inc., to provide digital media and capital markets communications services to the company by paying CAD$ 5K and up to maximum of CAD $30K towards direct expenses and costs for a 2-month period (Jemi HREE project, Coahuila).
  • Ridgestone Mining Inc., reported results from its annual general meeting of shareholders (Rebeico project, Sonora).
  • Excellon Resources Inc., provided a corporate update and outlook for 2024 (Platosa mine, Durango).  The company eliminated the USD $22M litigation liability overhang, through the deconsolidation of San Pedro Resources, and completed the strategic review of prior Mexico operations to allow Excellon to focus energies on key assets. Excellon is pursuing acquisition opportunities where it can unlock further value for shareholders.

ON SOCIAL RESPONSIBILITY

  • No relevant news.

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

On the picture above, a hydrothermal breccia in an intermediate sulphidation epithermal vein system in a project in Chihuahua. Photo by Miguel A Heredia

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

/ gambusinoprospectormexico / Leave a comment

Banded quartz veins and breccias

By Miguel A Heredia

During the 48th week of the year (November 27th to December 03rd, 2023), at least 29 press releases were announced by companies working in Mexico, and 1 news published by the media, with ten disclosing deals and corporate issues, eight reporting resources and developments, seven announcing financing issues, three communicating production results, and two commenting on Mexican issues. ON MEXICO ISSUES, President of the College of Mining Engineers, Metallurgists and Geologists of Mexico (CIMMGM), assured that, although there are promising geological signs in Chihuahua, Coahuila, Zacatecas, Oaxaca, Guerrero and Guanajuato, the Mining Law limits exploration of ‘rare earths’ in Mexico. Torex Gold, Endeavour Silver, and Vizsla reported the best drilling intercepts in Mexico on the fifth week of November, 2023. ON EXPLORATION, No relevant news. ON MINING, Orogen reported royalty revenue for Q3, 2023. Santacruz announced Q3, 2023 production results from its Zimapan mine in Hidalgo. Minera Alamos reported Q3, 2023 production and financial results from its Santana mine in Sonora. ON FINANCING Sailfish elected to settle and aggregate of USD $205K in interest accrued up to November 24, 2023 through the issuance of an aggregate of 219,397 common shares (Gavilanes project, Durango). Orex announced a non-brokered private placement for gross proceeds of up to $1M (Valenciana project, Zacatecas). Aura declared dividend of USD $0.25 per common share (Aranzazu mine, Zacatecas).  Silver Viper announced a non-brokered private placement for gross proceeds of up to $5M (La Virginia project, Sonora). Tocvan closed the first tranche of its previously announced non-brokered private placement for gross proceeds of $369K (Pilar project, Sonora). Oroco closed a non-brokered private placement for gross proceeds of $2,691,940 (Santo Tomas project, Sinaloa). ON RESOURCES AND DEVELOPMENT, Vizsla released new drill results from 22 expansion and infill holes collared at its flagship Panuco project, Sinaloa.  Endeavour presented results from its exploration drilling program at its Bolañitos mine, Guanajuato. Guanajuato Silver initiated processing of mineralized material from El Horcon mine, Guanajuato. Heliostar announced updated Mineral Resource Estimate for its Ana Paula project, Guerrero. Tocvan poured the first doré bar of gold and silver from bulk sample material processed at its Pilar project, Sonora. Torex released results from the 2023 exploration drilling program at its Media Luna West project in Guerrero. Mammoth announced results of an independent drill hole spacing analysis with recommendations to identify initial Mineral Resource Estimate at its Tenoriba project, Chihuahua. Oroco filed an independently prepared Preliminary Economic Assessment (PEA) for its Santo Tomas project in Sinaloa.  ON DEALS AND CORPORATE ISSUES, Bear Creek entered into an agreement to amend the convertible promissory note in the amount of USD $26,632,458 issued to Equinox on October 19, 2023 (Mercedes mine, Sonora).  Endeavour announced that it hosted an investor day at its Terronera project in Jalisco last November 19-21. Argonaut announced that it attended the Scotiabank Mining Conference in Toronto (El Castillo mine, Durango). Discovery announced the appointment of its new COO (Cordero project, Chih). Guanajuato Silver announced management changes (La Valenciana mine, Guanajuato). Bear Creek granted a total of 900K stock options to two recently appointed Directors and new Chief Operating Officer (Mercedes mine, Sonora).  Mithril announced termination of scheme implementation deed under which Newrange would acquire 100% of the issued share capital of Mithril (Copalquin project, Durango).  Pan American Silver acquired 5,083,780 common shares of New Pacific Metals Corp., for total investment value of approximately CAD $13.5M (La Colorada mine, Zacatecas). Prime Mining announced that it will be trading on the Toronto Stock Exchange on December 5, 2023 following its graduation from the TSX Venture Exchange (Los Reyes project, Sinaloa). Silver Storm announced that it will present live at the Clean Energy and Precious Metals Virtual Investor Conference on December 5, 2023 (La Parrilla mine, Durango).  ON SOCIAL RESPONSIBILITY, No relevant news.

ON MEXICO ISSUE

  • President of the College of Mining Engineers, Metallurgists and Geologists of Mexico (CIMMGM), assured that, although there are promising geological signs in Chihuahua, Coahuila, Zacatecas, Oaxaca, Guerrero and Guanajuato, the Mining Law limits exploration of ‘rare earths’ in Mexico. The lack of formal exploration work imposed by the new legislation leaves Mexico at risk of becoming dependent on China, which controls 90 percent of global rare earth production. This is because the only one that can carry out exploration in Mexico is the Mexican Geological Service (SGM), which has reduced the interest of private parties to search for these minerals. For next year, the Secretariat of Finance and Public Credit (SHCP) granted the SGM a budget of MXP $1,320M, just MXP $127M more in relation to the MXP $1,193M that were granted for 2023, a budget that, they assure, will be insufficient. SGM explained that, if they do not have more budget, it will be difficult for them to meet the new mandates assigned to them by the Ministry of Economy, so, until now, they said, the most viable thing will be to work hand in hand with private sector.
  • Torex Gold Resources Inc., Endeavour Silver Corp., and Vizsla Silver Corp., reported their best drilling intercepts in Mexico on the third week of November, 2023. Details are shown in the table below:

ON EXPLORATION

  • No relevant news.

ON MINING

  • Orogen Royalties Inc., reported royalty revenue for Q3, 2023. Production from Ermitaño mine, Sonora is operated by First Majestic Silver Corp., and Orogen holds a 2% net smelter return royalty.  Ermitaño processed 226,292 tonnes containing average grades of 4.09 g/t Au and 75 g/t Ag to produce 28,367 Oz Au and 347,941 Oz Ag. The company recorded $1,628,409 in royalty revenue consisting of 614 gold equivalent ounces (GEOs), up 29% compared to the same period in 2022.
  • Santacruz Silver Mining Ltd., announced Q3, 2023 production results from its Zimapan mine in Hidalgo. The company processed 192,158 tonnes of 80 g/t Ag, 1% Pb, 2.5% Zn, and 0.29% Cu to produce 378.7K Oz Ag, 3.42M Lb Pb, 8.36M Lb Zn, and 564.5K Lb Cu (1.2M Oz AgEq).
  • Minera Alamos Inc., reported Q3, 2023 production and financial results from its Santana mine in Sonora. The company announced that the total Oz Au recovered since the start of operations through until September 30, 2023 at Santana was 14,270 Oz Au with a recoverable gold inventory on the leach pad increasing to 6,337 ounces as at September 30, 2023. It also released financial results (all numbers in Canadian dollars) and reported revenue from the sale of 6,337 Oz Au of $1,790,245; good sold and depletion of $2,063,559 for gross loss from mining operations of $273,313;  a net loss of $4,973,485; working capital as of September 30, 2023 of $19,668,154; and cash and cash equivalents of $6,573,453.

ON FINANCING

  • Sailfish Royalty Corp., elected to settle and aggregate of USD $205K in interest accrued up to November 24, 2023 through the issuance of an aggregate of 219,397 common shares in the capital of the company  at a deemed price of CDN $1.28 per share to the holders of convertible debentures dated May 24, 2023. Each debenture accrues interest at a rate of 10% per annum payable semi-annually in arrears (Gavilanes project, Durango).
  • Orex Minerals Inc., announced a non-brokered private placement for gross proceeds of up to $1M from the sale of 6,666,667 units at a price of $0.15 per unit. Gross proceeds will be used for exploring its new Valenciana project in Zacatecas and for general working capital purposes.
  • Aura Minerals Inc., declared dividend of USD $0.25 per common share (Approximately USD $18M) based on the actual results from Q3, 2023 and the expected results for Q4, 2023, including expected production, cash costs and sustaining and exploration capex for Q4, 2023. The dividend will be paid to shareholders on December 19, 2023 (Aranzazu mine, Zacatecas).
  • Silver Viper Minerals Corp., announced a non-brokered private placement for gross proceeds of up to $5M from the sale of 45,454,546 units at a price of $0.11per unit. Silver Viper filed an amendment and restarted the offering document, suggesting prospective investors to read the offering document before making an investor decision. “The company intends to use the minimum net proceeds of $2M from the offering for working capital requirements and other general corporate purposes which includes legal and financing fees as part of this offering, and the final USD $200K option payment on its La Virginia Project due in 2024. Any additional net proceeds from the offering will be used to continue surface exploration including mapping and sampling as well as a drill campaign at the La Virginia Project in Sonora”.
  • Tocvan Ventures Corp., closed the first tranche of its previously announced non-brokered private placement for gross proceeds of $369K from the sale of 820K units at a price of $0.45 per unit. Gross proceeds will be used to advance the Pilar project in Sonora.
  • Oroco Resource Corp., closed a non-brokered private placement for gross proceeds of $2,691,940 through the sale of 6,729,850 units at a price of $0.40 per unit. Gross proceeds will be used for working capital and corporate overhead and exploration and development activities (Santo Tomas project, Sinaloa).

ON RESOURCES AND DEVELOPMENT

  • Vizsla Silver Corp., released new drill results from 22 expansion and infill holes collared on the Copala resource area at its flagship Panuco project, Sinaloa. Drilling highlights (true widths reported) include holes CS-23-304 with 249 g/t Ag and 1.23 g/t Au (313 g/t AgEq) over 1.0m; and hole CS-23-300 with 247 g/t Ag and 2.28 g/t Au (385 g/t AgEq) over 1.73m, plus 519 g/t Ag and 3.57 g/t Au (724 g/t AgEq) over 3.10m, including 1,255 g/t Ag and 8.61 g/t Au (1,749 g/t AgEq) over 1m, plus 190 g/t Ag and 0.69 g/t Au (221 g/t AgEq) over 1.25m. “The reported results have successfully expanded Copala mineralization by ~100m to the southeast and identified new vein splays situated in-between Copala and the high-grade Cristiano structure”.
  • Endeavour Silver Corp., presented results from its exploration drilling program conducted on El Puertecito and Fortuna Veins at its Bolañitos mine, Guanajuato. Focus of this program is to increase resources, replace reserves, and extend mine life. Drilling highlights (true width reported) at Fortuna Vein include includes hole  GOL-42 with 4.01 g/t Au and 135 g/t Ag (456 g/t AgEq) over 1.18m, including 8.04 g/t Au and 280 g/t Ag (923 g/t AgEq) over 0.56m. Drilling highlights (true widths reported) at El Puertecito Vein include holes GOL-11 with 8.78 g/t Au and 86 g/t Ag (788 g/t AgEq) over 2.09m, including 25.70 g/t Au and 59 g/t Ag (2,115 g/t AgEq) over 0.57m; and hole GOL-09 with 4.44 g/t Au and 94 g/t Ag (449 g/t AgEq) over 2.07m, including 11.35 g/t Au and 258 g/t Ag (1,166 g/t AgEq) over 0.56m.
  • Guanajuato Silver Company Ltd., initiated processing of mineralized material from an existing stock pile at its El Horcon mine, Guanajuato. The company has shipped and processed 350 tonnes of material from the historical stockpile. Head grades from different batches of this material were approximately 30-50 g/t Ag and 1.6 to 3.0 g/t Au, with initial processing runs given recoveries of approximately 70% for Ag and 82% for Au. “The Horcon stockpile is expected to add approximately 4,000 tonnes of mineralized material per month over a six-to-ten-month period. Metallurgical testing of the mineralized material at Horcon has been demonstrated compatible with the Cata mill processing circuit and is currently being blended with mineralized production from the Valenciana Mines Complex”.
  • Heliostar Metals Ltd., announced updated Mineral Resource Estimate for its Ana Paula project, Guerrero. Highlights of the Mineral Resource Estimate include a total measured and indicated mineral resources of 710,920 Oz Au grading 6.6 g/t Au; a total of inferred mineral resource of 447,512 Oz Au grading 4.21 g/t Au; a mineral resource estimation cutoff grade of 2.5 g/t Au increased from previous estimate; a connected zone of greater than 2ooK Oz Au grading greater than 10 g/t Au within the measured resource in the High Grade Panel that can be targeted in the initial years of mining; a 58% increase in measured and 30% increase in indicated gold grade relative to the previous resource estimate at same 2.5 g/t cutoff grades. On the other hand, a tighter spaced drilling has led to resource grade growth which is a positive indication for additional grade increases during conversation of the inferred resources to higher classifications; has increased in inferred ounces due to stricter estimation with a view to underground mining; the High Grade Panel at core of the resource is now 280m long, 100m high, and 60m thick; and this new resource has been delivered  at an all-in discovery cost of USD $16 per new Oz Au, inclusive of all exploration and project costs.
  • Tocvan Ventures Corp., poured the first doré bar of gold and silver from bulk sample material processed at its Pilar project, Sonora. The bar weighs 1.487 kilograms in total, with assays from local certified laboratory LTM returning 18% of gold and 69% of silver.
  • Torex Gold Resources Inc., released results from the 2023 exploration drilling program at its Media Luna West project in Guerrero, which consisted of 7 holes totalling 9.722m. Drilling highlights include holes ML23-965 with 1.63 g/t Au, 13 g/t Ag, and 0.48% Cu (2.55 g/t AuEq) over 6.85m, plus 4.42 g/t Au, 1 g/t Ag, and 0.04% Cu (4.50 g/t AuEq) over 2.96m; hole ML23-970A with 2.81 g/t Au, 27 g/t Ag, and 0.31% Cu (3.62 g/t AuEq) over 5m; and hole ML23-986A with 27.50 g/t Au, 28 g/t Ag, and 1.2% Cu (29.76 g/t AuEq) over 14.1m. “The current distribution of the multiple intercepts confirms a north-south extension of more than 600 m with a width similar to the EPO deposit, which suggests Media Luna West could have a similar mineralized potential to that of EPO. The exploration potential of this structural corridor is open to the north and is likely favored by intersecting with the swarm of east-west dykes that define the best mineralization trap within both the nearby Media Luna and EPO deposits”.
  • Mammoth Resources Corp., announced results of an independent drill hole spacing analysis with recommendations to identify initial Mineral Resource Estimate (MRE) at its Tenoriba project, Chihuahua. The independent analysis recommended  drill hole spacing for the El Moreno, Masuparia, and Los Carneritos targets of 80m, 40m, and 80m respectively, for an Inferred MRE.
  • Oroco Resource Corp., filed an independently prepared Preliminary Economic Assessment (PEA) for its Santo Tomas project in Sinaloa. The report dated October 11, 2023 and titled “Santo Tomas Copper Project NI 43-101 Technical Report and Preliminary Economic Assessment”, has been prepared in accordance with National Instrument 43-101 – Standards of Disclosure of Mineral Projects.  Results of the PEA were previously announced in the Company’s news release dated October 17, 2023.  There are no differences in the Report from those results previously reported. 

ON DEALS AND CORPORATE ISSUES

  • Bear Creek Mining Corporation entered into an agreement to amend the convertible promissory note in the amount of USD $26,632,458 issued to Equinox Gold Corp., on October 19, 2023 (Mercedes mine, Sonora).
  • Endeavour Silver Corp., announced that it hosted an investor day at its Terronera project in Jalisco last November 19-21, to showcase the project and construction progress to date.
  • Argonaut Gold Inc., announced that it attended the Scotiabank Mining Conference held in Toronto last November 28th and 29th (El Castillo mine, Durango).
  • Discovery Silver Corp., announced the appointment of its new COO (Cordero project, Chih).
  • Guanajuato Silver Company Ltd., announced management changes, announcing the appointment of its new COO. The company also signed an agreement with the court appointed insolvency trustee of the Great Panther Estate to terminate all obligations of the company to make contingency payments totalling USD $2M in exchange for the offset of a working capital adjustment receivable owed to the company by Great Panther (La Valenciana mine, Guanajuato).
  • Bear Creek Mining Corporation granted a total of 900K stock options to two recently appointed Directors and new Chief Operating Officer (Mercedes mine, Sonora).
  • Mithril Resources Limited announced termination of scheme implementation deed under which Newrange would acquire 100% of the issued share capital of Mithril and pursuant to which the existing options to acquire shares in Mithril would be cancelled (Copalquin project, Durango).
  • Pan American Silver Corp., acquired 5,083,780 common shares of New Pacific Metals Corp., for total investment value of approximately CAD $13.5M. “Upon completion of the offering, which occurred on September 29, 2023, Pan American owns, directly and indirectly, 19,807,848 common shares representing approximately 11.6% of the outstanding common shares. Immediately prior to the acquisition, Pan American held 14,724,068 common shares, representing approximately 9.34% of the issued and outstanding common shares” (La Colorada mine, Zacatecas).
  • Prime Mining Corp., announced that it will be trading on the Toronto Stock Exchange on December 5, 2023 following its graduation from the TSX Venture Exchange. The trading symbol for the common shares of Prime on the TSX will remain unchanged as “PRYM” (Los Reyes project, Sinaloa).
  • Silver Storm Mining Ltd., announced that it will present live at the Clean Energy and Precious Metals Virtual Investor Conference on December 5, 2023 (La Parrilla mine, 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, brecciated banded quartz vein in an epithermal vein system in a project in Zacatecas, Mexico. Photo by Miguel A Heredia.

The Mining and Exploration News in Mexico: Highlights on the Fourth Week of November 2023

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By Jorge Cirett                                             

During the 47th week of the year (November 19th to November 26th, 2023), companies working in Mexico posted 22 news releases. Four companies reported exploration advances on their properties, three companies released Q3 2023 reports, one on metallurgical test results and one more on new concentrate production. One company announced the repurchase of part of its shares, one a financing round, one an incentive warrant program and one more the payment of dividends.  One company released drilling results from a past producing mine, and one other filed a technical report on its property. One company reported on the acquisition of additional land adjacent to its mining operations, and two more on the appointment of directors. ON MEXICO ISSUES, the country has attracted US$2,737 M of direct foreign investment on mining this year.  ON EXPLORATION, in Sonora, Aztec Minerals has completed seven RC holes at Cervantes; Colibri Resource and Silver Spruce updated on project work at Diamante. In Chihuahua, Kootenay Silver released results from three holes at Columba. In Zacatecas, Radius Gold presented the results of the last drill hole at Tropico. ON MINING, Impact Silver, Bear Creek Mining and Guanajuato Silver presented Q3 2023 production results. Luca Mining presented results from metallurgical tests at Campo Morado. Golden Minerals begun to produce gold-bearing pyrite concentrates at Velardeña. ON FINANCING, Teck Resources intends to repurchase up to 7.8% of its shares. Oroco Resource launched a financing round for up to $2.5 M. Heliostar Metals is encouraging the early exercise of share purchase warrants. Alamos Gold declared a quarterly dividend.  ON RESOURCES AND DEVELOPMENT, Silver Storm released results from drilling at La Parrilla past-producing mine in Durango. Sonoran Desert filed a technical report on the Cuatro Hermanos property in Sonora. ON DEALS AND CORPORATE ISSUES, Coeur Mining signed a purchase agreement with Fresnillo PLC to acquire mining concessions adjacent to its mining operations at Palmarejo in Chihuahua. Osisko Development and Orla Mining announced the appointment of directors. ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUES

  • According to information from the Economy Secretariat (Secretaría de Economía) Mexico has attracted US$2,737 M of direct foreign investment on mining this year, and US$9,089 M during the first five years of the present administration.
  • According to Camimex, in a note published on El Economista, three companies control 80% of mining production by Mexican enterprises: Grupo Mexico, Fresnillo PLC and Peñoles.

ON EXPLORATION

  • Radius Gold Inc. provided results from the last of hole of the 1,300 m diamond drilling program at the Tropico project in Zacatecas. Highlighted intervals comprise 9.02 m @ 0.11 gpt Au; 1.53 m @ 0.33 gpt Au; 4.58 m @ 0.22 gpt Au; 19.82 m @ 0.15 gpt Au. “Drilling defined a large gold mineralized breccia body that starts at surface and to date defined 250m down dip….. The drilling encountered wide zones of classic low sulphidation epithermal alteration, high level chalcedonic silica, banded stockwork and massive quartz veining, and breccias with gold mineralization, but not significant high grade mineralization”.
  • Aztec Minerals Corp. announced the completion of the first seven holes of the current drilling program at Cervantes, in Sonora. The eleven-hole reverse circulation drilling program envisages 1,650 m of which 963 m have already been completed in the California zone, while step-out drilling is to focus in expansion. Results are pending. “The gold mineralization is characterized by oxidized and unoxidized stockwork veinlets of A, B, and C types and disseminated sulfide sites, with silicification and phyllic alterations. Potassic alteration is present in places and is associated with mineralization as well”.
  • Colibri Resource Corp. and JV partner Silver Spruce Resources Inc. report the discovery of Au-Ag showings on the Diamante property in Sonora. Recent work in the property includes geological mapping, evaluation and sampling of historical showings, collection and assaying of 49 stream sediment samples and 60 outcrop samples. New mineralized showings in the northern and southern parts of the concession returned assays of 3.52 gpt Au, 121 gpt Ag; 0.122 gpt Au, 197 gpt Ag; 0.818 gpt Au, 5 gpt Ag; 0.749 gpt Au, 2 gpt Ag; 3.34 gpt Au, 20 gpt Ag. The Diamante property exhibits characteristics of “epithermal low to intermediate sulfidation Ag-Au (Pb-Zn), high sulfidation Au-Cu, and potential transition zones within and peripheral to porphyry style Au-Cu mineralization”.
  • Kootenay Silver Inc. announced results from three additional drill holes at its Columba project in Chihuahua. The drill program envisages 3,000 m on 12 to 15 holes to extend known mineralization on the “D” vein target area. Highlighted core length intervals comprise 29 m @ 208 gpt Ag, 0.2% Pb, 0.5% Zn (including 9.67 m @ 510 gpt Ag, 0.2 gpt Au, 0.5% Pb, 1.0% Zn; which includes 2.37 m  1,142 gpt Ag, 0.1 gpt Au, 0.9% Pb, 2.5% Zn), 10.1 m @ 152 gpt Ag, 0.2% Pb, 0.4% Zn; 3.1 m @ 308 gpt Ag, 0.1% Pb, 0.3% Zn (including 1.56 m @ 532 gpt Ag, 0.2% Pb, 0.4% Zn). “Columba hosts an extensive network of intermediate-style epithermal quartz, carbonate +/- barite veins aligned into two broadly cross-cutting orientations. Fieldwork to date has identified numerous mineralized structures across the project measuring up to 4 kilometres in length.”

ON MINING

  • Luca Mining Corp. announced results from its optimization program at the Campo Morado mine in Guerrero. A bulk concentrate is being produced with greater than 70% Cu recovery, up from the historical 35-40% recovery range. “Overall zinc recovery is expected to increase from 76% to 86% and the final concentrate grade increases from 46% to 56% zinc over the next 12 months…. Ausenco have conducted a range of laboratory testing, initially of zinc circuit feed samples, to study the potential for improved zinc circuit stage recoveries. With a series of changes to reagents and other operational parameters in flotation in the plant, overall zinc recovery increased from 75% to 82% and the final concentrate grade from 45% to 51% zinc”. Additional work is being conducted to produce clean and higher-grade Cu and Pb concentrates.
  • Golden Minerals Co. has begun producing gold-bearing pyrite flotation concentrate from its Velardeña properties in Durango. “The Company is processing material that has been stockpiled at Velardeña since the mines last operated in 2015”. Recent favorable market terms for Au bearing pyrite/arsenopyrite concentrate are now economic to process and sell.
  • Impact Silver Corp. announced its financial and operating results for the third quarter 2023. At Zacualpan, in Estado de Mexico, throughput was 37.2 K tonnes @ 162 gpt Ag. At Plomosas, in Chihuahua, Impact has completed the final steps to get back online the 200 tpd zinc mine. “Exploration potential at Plomosas is exceptional with only 600m of the 6-kilometre-long structure assessed”. The company invested $3.8 M in exploration expenditures and mining assets, with a cash position at quarter-end of $8.9 M and working capital of $8.7 M.
  • Bear Creek Mining Corp. reported results for Q3 2023. At the Mercedes mine in Sonora, 123.5 K tonnes were mined @ 2.79 gpt Au, with 126.2 K tonnes processed averaging 2.40 gpt Au, recovering 93.4% Au to produce 9,155 Oz Au, 33.7 K Oz Ag. During the period the company entered into a restructuring agreement with Equinox Gold Corp. to convert a $26 M current liability into a non-current obligation by issuing a convertible promissory note at a competitive interest rate. A second restructuring agreement was signed with Sandstorm Gold Ltd. to reduce near-term Au and Ag stream delivery obligations and refinance and extend debt. A C$9.5 M private placement was completed also during the period. Mining methods have been changed to sub-level caving at the San Martin deposit and sub-level stoping at the Marianas deposit. Average mining costs have decreased from $80.84 per tonne mined to $68.37 during the year (15% decrease). The Mercedes structural trend has contributed with “over 580,000 ounces of gold to the mine’s historical production since 2011”. Production from the San Martin deposit increased from 400 tpd to almost 600 tpd during Q3 and is expected to reach 800 tpd during Q4 2023.
  • Guanajuato Silver Company Ltd. released financial and operating results for Q3 2023. Consolidated production from Valenciana and El Cubo mines in Guanajuato and from Topia in Durango comprises 134.9 K tonnes mined, 132.5 K tonnes milled, to produce 425.5 K Oz Ag, 3,441 Oz Au, 935.8 K Lb Pb, 857.7 K Lb Zn, or 787.1 K Oz AgEq at cash cost $20.79 per Oz AgEq and an AISC of $26.22 per Oz AgEq.
  • Sailfish Royalty Corp. announced operating and financial results for Q3 2023. No information was provided on the Gavilanes property in Durango, Sailfish’s only significant exploration property in Mexico.

ON FINANCING

  • Teck Resources Ltd. is to establish a normal course issuer bid to purchase up to 40 M Class B shares from November 2023 to November 2024, representing 7.8% of the outstanding Class B shares, or 7.9% of the public float, as at November 15, 2023. “Teck is making the normal course issuer bid because it believes that the market price of its Class B Shares may, from time to time, not reflect their underlying value and that the share buy-back program may provide value by reducing the number of shares outstanding at attractive prices. All repurchased shares will be cancelled” (San Nicolas, Zacatecas).
  • Oroco Resource Corp. announced a non-brokered private placement to raise gross proceeds of up to $2.5 M (Santo Tomas, Sinaloa).
  • Heliostar Metals Ltd. updated on its incentive warrant program designed to encourage the early exercise of share purchase warrants. To date, holders of 14.37 M outstanding warrants have committed to participate in the warrant incentive program, which if exercised would result in gross proceeds of $4.6 M (Ana Paula, Guerrero).
  • Alamos Gold Inc. declared a quarterly dividend of US$0.025 per common share. Alamos has paid dividends for 14 consecutive years, during which time $324 M has been returned to shareholders through dividends and share buybacks, including $40 M thus far in 2023 (Mulatos, Sonora).

ON RESOURCES AND DEVELOPMENT

  • Silver Storm Mining Ltd. released results from two more holes at La Parrilla, in Durango. Highlighted core length intervals comprise 0.82 m @ 419 gpt Ag, 0.53 gpt Au, 0.09% Cu, 12.3% Pb, 10.7% Zn; 0.44 m @ 200 gpt Ag, 0.19 gpt Au, 0.10% Cu, 6.6% Pb, 8.8% Zn; 1.77 m @ 25 gpt Ag, 4.07 gpt Au, 0.06% Cu, 0.1% Pb; 2.28 m @ 67 gpt Ag, 0.04 gpt Au, 0.02 % Cu, 3.1% Pb, 3.2% Zn; 8.72 m @ 125 gpt Ag, 0.04 gpt Au, 0.06% Cu, 2.4% Pb, 4.8% Zn; 1.05 m @ 322 gpt Ag, 0.16 gpt Au, 0.07% Cu, 9.5% Pb, 15.8% Zn. One of these high-grade intercepts is 97 m below the last mine development, while another high-grade replacement zone was identified. An unusual tourmaline breccia pipe was intersected, returning 1.77 m @ 4.07 gpt Au. “Drill results from the Quebradillas mine have enhanced our understanding and confidence that the La Parrilla Mine can be brought back online. In 2024, Silver Storm will proceed with technical studies targeting the re-establishment of mining operations in 2025.”
  • Sonoran Desert Corp. filed the NI 43-101 compliant technical report on the Cuatro Hermanos project in Sonora. The Mineoro Explorations LLC produced report states mineralization is of Porphyry Cu-Mo style associated to a porphyry intrusive complex hosted in an andesitic volcanic sequence, with Cu-Mo mineralization forming subvertical orebodies related to magmatic breccias and possibly tabular bodies of more than 3 Km along strike. Modelling suggests the Main and West zones might be connected, and that deeper drilling is needed. Recommended activities include relogging of core and RC drilling chips from the 2007-2008 campaigns, check assays on 10% of the pulps, drilling the West zone at 100 m spacing, deeper drilling, twinning of some holes, RC drilling and column leach test on the South Conglomerates (Exotic Cu target), begin metallurgical testing of oxides and sulfides, tie surface access agreements and commence permitting for drilling.

ON DEALS AND CORPORATE ISSUES

  • Coeur Mining Inc. signed a purchase agreement with Fresnillo PLC to acquire mining concessions adjacent to the Palmarejo complex in Chihuahua. The concessions comprise 2,833 ha, including the southeast extension of the Independencia and Nacion deposits, currently being mined at the Palmarejo property, and to the northeast a concession that surrounds “multiple targets containing mineralization and historic resources that were added through the 2015 acquisition of Paramount Gold and Silver. The terms of the transaction include a $10 M payment upon closing, an additional $10 M one year after closing and an additional $5 M two years after closing. The concessions will be subject to a royalty payment of $25 per Oz for each new Oz AuEq of resource discovered between 450 K and 2 M Oz AuEq.
  • Osisko Gold Royalties Ltd. announced Mr. Sean Roosen resigned as a director in order to focus on his role as CEO and Chair of the Board of Directors of Osisko Development Corp. (San Antonio, Sonora).
  • Orla Mining. Ltd. appointed Mr. Rob Krcmarov as an independent director of the company (Camino rojo, Zacatecas).

ON SOCIAL RESPONSIBILITY

  • No Relevant News.

On the image below: Quartz-specularite vein in a Sonoran Desert project. Picture by Jorge Cirett.

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

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Breccia cemented by tourmaline

By Miguel A Heredia During the 32nd week of the year (August 07th to August 13th, 2023), at least 24 press releases were announced by companies working in Mexico, and 3 news published by the media, with twelve five communicating production and financial results, four commenting on Mexican issues, four disclosing deals and corporate issues, four announcing financing issues, two reporting resources and development of their properties,, and one informing on exploration results. ON MEXICO ISSUES, The union leader Carlos Pavón Campos achieved a milestone by obtaining an injunction against the limit on the payment of utilities in the mining sector. The economic impact of the Peñasquito, the largest gold mine in Mexico due to the stoppage of activities is over USD $220M. Heliostar and Coeur Mining reported the best drilling intercepts in Mexico on the second week of August, 2023. ON EXPLORATION, In Chihuahua, Kingsmen released results from 21 surface samples collected on the southeast portion of its Las Coloradas project. ON MINING, Aura Minerals reported Q2, 2023 production and financial results and provided 2023 production guidance (Aranzazu Mine, Zacatecas). Avino reported Q2, 2023 production and financial results from its Avino mine in Durango. Endeavour reported Q2, 2023 production and financial results from their Mexican mine operations. Gatos Silver reported Q2, 2023 financial results from its Cerro Los Gatos mine in Chihuahua, where it owns 70% interest. GoGold announced Q2, 2023 financial results (Parral Tailings project, Chihuahua). Golden Minerals reported Q2, 2023 financial results. Argonaut reported Q2, 2023 production and financial results from their Mexican mine operations. Starcore reported Q1, 2023 production results from its San Martin Mine in Queretaro. SilverCrest reported Q2, 2023 production and financial results from its Las Chispas mine in Sonora. Santacruz Mining reported Q2, 2023 production results from its Zimapan Mine in Hidalgo. Fortuna reported Q2, 2023 production and financial results from its San Jose Mine in Oaxaca.  ON FINANCING, SilverCrest announced that it filed and received acceptance from the Toronto Stock Exchange (TSX) for a notice of intention to make a normal course issuer bid (Las Chispas Mine, Sonora).  GR Silver closed the first tranche of a non-brokered private placement for gross proceeds of $329,875 (Plomosas project, Sinaloa).  DynaResource announced that it has entered into a stock purchase agreement with Ocean Partners, under which the company issued 1M shares of common stock to Ocean Partners in exchange for USD $5M (San Jose de Gracia property, Sinaloa). Galore announced that it has entered into a loan agreement with a dedicated arm’s length shareholder of Galore (Dos Santos project, Zacatecas). ON RESOURCES AND DEVELOPMENT, Heliostar reported results from four holes drilled at its Ana Paula project in Guerrero. Coeur provided an update on the exploration program at its Palmarejo project in Chihuahua.  ON DEALS AND CORPORATE ISSUES, US Antimony announced that a live webcast of a new company investor presentation will be given by Chairman of the Board (Los Juarez project, Qro). Argonaut appointed a new member to its Board of Directors (San Agustin Mine, Durango). Capitan Silver Corp., announced results from its annual and special meeting of shareholders (Cruz de Plata project, Durango). Santacruz announced management changes (Zimapan Mine, Hidalgo). ON SOCIAL RESPONSIBILITY, no relevant news. ON MEXICO ISSUE

  • The union leader Carlos Pavón Campos achieved a milestone by obtaining an injunction against the limit on the payment of utilities in the mining sector. “As part of the payment of utilities for 2022, we should have received around MXP $900M, and only MXP $300M were distributed, where were MXP $600M left, if the Constitution indicates that 10% must be paid of the profits that the companies obtained?”, expressed Carlos Pavón Campos. In an interview, Pavón Campos expressed that this “amparo” could set a precedent, since it is the way for all the workers who were affected in the payment of utilities to receive what corresponds to them, and not the three months of salary or the average of the last three years as established by the Federal Labor Law.
  • The economic impact of the Peñasquito, the largest gold mine owned by Newmont in Mexico due to the stoppage of activities is over USD $220M. Experts are concerned about the repercussions that the conflict will have for the company, the industry and for metal production, and also for the lack of dialogue between the company and the workers of the National Mining Union. The strike began on June 7 after more than 2,000 workers from Section 304 of the National Mining Union accused the company of violating the collective labor contract, of failing to comply with the Federal Labor Law, the T-MEC and the conventions of the International Labor Organization, but also omitting the full payment of profits to the workers. Newmont announced that is willing to negotiate with the Mining Union to lift the strike in Peñasquito. The gold mining company also denied having threatened the workers who are on strike, as denounced by section 34 of the National Mining Union. The gold-producing company assured that they have maintained constant communication with unionized and non-unionized workers to let them know the status of the negotiations they have had with the Union representatives. Finally, the company reiterated that it has complied in time and form with the payment of the PTU corresponding to fiscal year 2022 according to the audited financial statements.
  • Heliostar Metals Ltd., and Coeur Mining Inc., reported the best drilling intercepts in Mexico on the second week of August, 2023. Details are shown in the table below:

ON EXPLORATION

  • Kingsmen Resources Ltd., released results from 21 surface samples collected along the Soledad and Soledad II structures, on the southeast portion of its Las Coloradas project in Chihuahua. Four samples returned >300 g/t Ag; two returned > 200 g/t Ag; and one returned > 100 g/t Ag. The company reported that prospecting and sampling will continue on the property. Las Coloradas is located in the Parral mining district of the Central Mexican Silver Belt.

ON MINING

  • Aura Minerals Inc., reported Q2, 2023 production and financial results and provided a 2023 production guidance for its Aranzazu Mine in Zacatecas (currency is reported in US dollars). The company produced during the second quarter of the year 25,192 Gold Equivalent Ounces (GEO). It also provided an updated 2023 production guidance. Aura plans to produce between 104K-112K GEO at cash and AISC of $783-842 and $1,025-1,101 per GEO sold respectively, considering actual current prices, between 105K-114K GEO at cash and AISC of $710-769 and $936-1,012 per GEO sold respectively, considering actual constant prices, and between 101K-116K GEO at cash and AISC of $685-$788 and $898,1,033 per GEO sold respectively, considering previous current prices. For constant metal prices in the previous guidance, the company considered a Cu price of $3.60/Lb, a Au price of $1,740/Oz, and a Ag price of $22.50/Oz, while for current prices it considered a Cu price of $3.90/Lb, Au price of $1,925/ Oz, and a Ag price of $23.20/Oz.
  • Avino Silver & Gold Mines Ltd., reported Q2, 2023 production and financial results from its Avino mine in Durango (currency is reported in US dollars). The company milled 157,371 tonnes to produce 232.4K Oz Ag, 1,520 Oz Au, and 1.44M Lb Cu (587.3K Oz AgEq) at cash and AISC of $16.33 and  $23.06 per AgEq payable Oz sold. The company reported revenues of $9.2M; mine operating income of $1M; net of none-cash costs of sales of $1.8M; net income of $1.1M or $0.01 per share; EBIDTA of $0.4M; adjusted earnings of $27K; and cash flow from operations of $503K. Avino also reported cash as per June 30, 2023 of $1.2M and a working capital of $4.6M.
  • Endeavour Silver Corp., reported Q2, 2023 production and financial results from their Mexican mine operations (currency is reported in US dollars). The company produced 1.49M Oz Ag and 9,819 Oz Au (2.3M Oz AgEq) at a cash and AISC of $13.52 and $22.15 per Oz payable silver respectively. Endeavour reported revenue of $50M from the sale of 1.3M Oz Ag and 9,883 Oz Au at average realized price of $24.13 per Oz Ag and $1,967 per Oz Au; a cash flow of $11.1M in operating cash flow before working capital changes and $18.8M in mine operating cash flow before taxes; a net loss of $1.1M or $0.01 per share; an adjusted earnings of $2.1M after adjusting for a $3.2M change in the fair value of investments; and a cash position of $43.5M and working capital of $78.2M.
  • Gatos Silver Inc., reported Q2, 2023 financial results from its Cerro Los Gatos mine in Chihuahua, where it owns 70% interest (currency is reported in US dollars). The company milled 265,342 tonnes of 265 g/t Ag, 4% Zn, 1.85% Pb, and 0.26 g/t Au to produce 2M Oz Ag, 14.8M Lb Zn, 9.7M Lb Pb, and 1,200 Oz Au (3.3M Oz AgEq) at co-product and by-product cash cost of $12.72 and $7.10 per Oz of payable AgEq respectively, and co-product and by-product AISC of $17.55 and $14.32 per Oz of payable AgEq respectively.  Los Gatos reported (100% basis) revenue of $58.3M; a cost of sales of $25.8M; a cash flow from operations of $34.3M, a net income of $0.7M; a sustaining capital of $13.1M; an EBITDA of $27.5M,  a free cash flow of $19.7M; and a net loss of $3.6M or $0.05 per share.
  • GoGold Resources Inc., announced Q2, 2023 financial results (currency is reported in US dollars) from its Parral Tailings project in Chihuahua. GoGold produced 203,894 Oz Ag, 1,512 Oz Au and 302,400 Lb Cu (375,112 Oz AgEq). The company reported revenue of $8.5M on the sale of 360K Oz AgEq at a realized per Oz Ag of $21.29 at adjusted cash and AISC of  $15.54 and $20.85 respectively per Oz AgEq; a cash of $98.7M; a net income of $2.6M including interest income of $1.5M.
  • Golden Minerals Company reported its Q2, 2023 financial results (all figures are in US dollars). The company produced at its Rodeo mine in Durango, 1,828 Oz Au and 7,742 Oz Ag at average realized prices of $1,976 per Oz Au and $24.34 per Oz Ag. Golden reported revenue of $5M which includes Rodeo´s sale of metals, sales of Velardeña concentrates, and sales of Rodeo slag material; a net operating margin of $1.1M; cash and equivalents balance as of June 30, 2023 of $3.4M; zero debt and a net loss of $1.5M or $0.21 per share. At June 30, 2023 the company reported current assets of $8.6M including cash and cash equivalents of approximately $3.4M, and account payable and other current liabilities of $5.4M.
  • Argonaut Gold Inc., reported Q2, 2023 production and financial results from their Mexican mine operations (all dollar amounts are expressed in US dollars). At La Colorada Mine, Sonora, Argonaut reported that it sold 5,680 Oz Au; a cost of sales of $8.1M; a cost of sales per Oz Au of $1,425; a cash cost of $6M, and a cash and AISC of $1,059 and $1,217 per Oz Au sold respectively. At San Agustin Mine, Durango, the company sold 12,774 Oz Au; a cost of sales of $21.9M; a cost of sales per Oz Au of $1,717; a cash cost of $17.7M, and a cash and AISC of $1,386 and $1,474 per Oz Au sold respectively. On August 4, 2023, the company signed an agreement to acquire the necessary land to complete mining of the current reserve base at the San Agustin Mine. Subject to receipt of the necessary permit, expected later this year, mining is expected to continue into 2025. At El Castillo Mine, Durango, Argonaut sold 5,502 Oz Au; a cost of sales of $8.54M; a cost of sales per Oz Au of $1,553; a cash cost of $7.44M, and a cash and AISC of $1,353 per Oz Au sold.
  • Starcore International Mines Ltd., reported Q1, 2023 production results from its San Martin Mine in Queretaro. The company milled 57,700 tonnes of 1.13 g/t Au and 14 g/t Ag (1.92 g/t AuEq) at metallurgical recoveries of 83.99% and 45.82% respectively, to produce 1,918 Oz AuEq.
  • SilverCrest Metals Inc., reported Q2, 2023 production and financial results from its Las Chispas mine in Sonora (all amounts are presented in US dollars).  SilverCrest mined 74,400 tonnes and milled 107,900 tonnes of 4.84 g/t Au and 449 g/t Ag with metallurgical recoveries of 96.4% and 97.9% respectively, to recover 16,550 Oz Au and 1.53 M Oz Ag. The company sold a total of 13,400 Oz Au and 1.45M Oz Ag at average realized prices of $1,991 per Oz Au, and $24.36 per Oz Ag. SilverCrest reported revenue of $62M; a cost of sales of $23.7M resulting in mine operating income of $38.3M; an income of $23.7M or $0.16 per share, inclusive of an $8.6M ($0.06 per share) unrealized foreign currency loss; an increased cash balance by $7.6M and bullion holdings by $3.6M during the quarter, after, sustaining capital at Las Chispas of $10.1M and retiring $25M of debt; cash flow from operating activities before changes in non-cash working capital items of $47.5M or $0.32 per share; and cash costs of $7.39 per Oz AgEq sold and all-in sustaining cost (AISC) of $12.70 per Oz AgEq sold based on accelerated spend towards exploration and for sustaining capital to create operational flexibility. The company ended the quarter debt free with treasury assets totaling $59M (cash of $53.4M and gold and silver bullion of $5.6M). Access to an undrawn $70M revolving credit facility remains.  In addition, the company provided production guidance for H2, 2023, it expects to produce 4.8 to 5.2M Oz AgEq at cash and AISC of $7-8.50 and $13.75-15.50 per Oz AgEq sold respectively. For the full 2023 year the SilverCrest expects to produce 9.8-10.2 M Oz AgEq at cash and AISC of $7.50-8.50 and $12.75-13.75 per Oz AgEq respectively.
  • Santacruz Silver Mining Ltd., reported Q2, 2023 production results from its Zimapan Mine in Hidalgo. The company processed 171,668 tonnes of 69 g/t Ag, 0.67% Pb, 2.25% Zn, and 0.33% Cu with metallurgical recoveries of 71%,74$,71%, and 53% respectively to produce 271.1K Oz Ag, 1.9M Lb Pb, 6.14M Lb Zn, and 665.3K Lb Cu (878.8K Oz AgEq).
  • Fortuna Silver Mines Inc., reported Q2, 2023 production and financial results from its San Jose Mine in Oaxaca (all amounts are expressed in US dollars). The company milled 194,887 tonnes of 168 g/t Ag and 1.02 g/t Au at metallurgical recoveries of 91% and 90% respectively, to produce 957.3K Oz Ag and 5,778 Oz Au. Fortuna sold 942.7K Oz Ag and 5,695 Oz Au at realized prices of $24.09/Oz Ag and $1,973/Oz Au.  The company reported a cash cost of $102.77/tonne and a cash and AISC of $15.93 and $24.07 per Oz AgEq respectively. It also reported sustaining expenditures of $3.6M; non-sustaining expenditures of $524K; and brownfield expenditures of $788K.

ON FINANCING

  • SilverCrest Metals Inc., announced that it filed and received acceptance from the Toronto Stock Exchange (TSX) for a notice of intention to make a normal course issuer bid pursuant to TSX requirements permitting the company to purchase up to 7,361,563 common shares of the company, representing approximately 5% of SilverCrest’s total issued and outstanding common shares. As of August 9, 2023 SilverCrest had 147,231,264 issued and outstanding common shares (Las Chispas Mine, Sonora).
  • GR Silver Mining Ltd., closed the first tranche of a non-brokered private placement. The company issued 6,597,500 units for gross proceeds of $329,875. GR Silver paid $8,100 and issued a total of 162,000 warrants as finder´s fees. Each finder’s warrant is exercisable for one common share at a price of $0.08 for two years (Plomosas project, Sinaloa).
  • DynaResource Inc. announced that it has entered into a stock purchase agreement with Ocean Partners UK Limited, under which the company issued 1M shares of common stock to Ocean Partners in exchange for USD $5M. Ocean Partners, through its 100% owned subsidiary in Mexico – MK Metals Trading (MK), and Dyna Mexico have formalized the extension of their commercial offtake agreement through December 31, 2026, and with revision of the next terms: OP / MK agreed to Increase the Advance Credit Line available to Dyna Mexico to USD $17.5M; OP / MK agreed to provide an Option to convert the Advance Credit Line into a Revolving Credit Line, repayable in 12 months, in maximum amount of USD $10M. The Company and Dyna Mexico plan to utilize the funds received from Ocean Partners to further expand and increase test mining and milling activities at San Jose de Gracia project in Sinaloa (SJG), to continue exploration drilling and related exploration activities at SJG, and for general corporate purposes.
  • Galore Resources Inc., announced that it has entered into a loan agreement with a dedicated arm’s length shareholder of Galore. The lender has provided the company with a cash loan of USD $20K.  The Loan shall bear an interest rate of 9% per annum compounded quarterly, due for repayment on August 3, 2024.  The funds will be used for obtaining assay results from the company’s most recent drill program at its Los Gemelos property within its Dos Santos project, Zacatecas.

ON RESOURCES AND DEVELOPMENT

  • Heliostar Metals Ltd., reported results from four holes drilled at its Ana Paula project in Guerrero. Drilling highlights include hole AP-23-300 with 32.1 g/t Au over 2.7m, plus 7.96 g/t Au over 72m, including 31.8 g/t Au over 9.5m; hole AP-23-302 with 5.01 g/t Au over 51.8m, including 11.6 g/t Au over 4.72m, plus 2.63 g/t Au over 17.6m, including 21.4 g/t Au over 1.36m; and hole AP-23-299 with 6.95 g/t Au over 38m, including 15.8 g/t Au over 11m, including 23.3 g/t Au over 6m. These four holes continue to assess mineralization up- plunge of the High Grade Panel at the core of Ana Paula.
  • Coeur Mining Inc., provided an update on the exploration program at its Palmarejo project in Chihuahua. Drilling at Hidalgo encountered the highest gold grades ever at Palmarejo and extended high-grade mineralization along strike to the NW in the direction of the Palmarejo processing facilities. Hidalgo comprises three individual veins: Hidalgo, San Juan, and Libertad. Drilling highlights at Hidalgo Vein include holes HGDH_118 with 15.1m of 2.8 g/t Au and 265 g/t Ag; hole HGDH_127 with 10.6m of 3.4 g/t Au and 248 g/t Ag; hole HGDH_137 with 5.8m of 41.1 g/t Au and 496 g/t Ag; and hole HGDH_151 with 8.7m of 3.0 g/t Au and 142 g/t Ag.  Drilling highlights at San Juan include hole HGHD_145 with 5.6m of 3.1 g/t Au and 240 g/t Ag. Drilling highlights at Libertad include hole HGDH_149 with 7.5m of 3.0 g/t Au and 170 g/t Ag. Coeur also reported that the infill and expansion drilling program completed at La Nacion and Zapata Deposits has been successful. Notable results from the infill drilling program include holes LBDH_237 with 2.2m of 1.51 g/t Au and 177 g/t Ag); Hole LBDH_239  with 3.3m of 1.71 g/t Au and 514 g/t Ag; hole DC3-ZPA-0018 with 3.8m of 8.1 g/t Au and 685 g/t Ag; hole DC3-ZPA-0042 with 5.7m of 2.02 g/t Au and 131 g/t Ag; and hole DC3-ZPA-0048 with 7.4m at 1.98 g/t Au and 86 g/t Ag, plus 2.2m grading 4.16 g/t Au and 307 g/t Ag)

ON DEALS AND CORPORATE ISSUES

  • US Antimony Corporation announced that a live webcast of a new company investor presentation will be given by Chairman of the Board (Los Juarez project, Qro).
  • Argonaut Gold Inc., appointed a new member to its Board of Directors, effective August 10, 2023 (San Agustin Mine, Durango).
  • Capitan Silver Corp., announced results from its annual and special meeting of shareholders (Cruz de Plata project, Durango).
  • Santacruz Silver Mining Ltd., announced that Carlos Silva Ramos is stepping down from his role as CEO and Director due to personal reasons (Zimapan Mine, Hidalgo).

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, breccia cemented by tourmaline in a porphyry copper project in Chihuahua, Mexico.  Photo by Miguel A Heredia.

The Mining and Exploration News in Mexico: Highlights on the Fourth Week of July, 2023

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Diatreme Breccia

By Miguel A Heredia During the 30th week of the year (July 24th to July 30th, 2023), at least 15 press releases were announced by companies working in Mexico, and 3 news published by the media, with five communicating production and financial results, four commenting on Mexican issues, three reporting resources and development of their properties, two disclosing deals and corporate issues, two informing on exploration results, and , two announcing financing issues, ON MEXICO ISSUES, Minera Autlan’s revenues in Q2, 2023 fell 51% due to the drop in manganese prices. Grupo Mexico obtained an increase of 37% of its net profits in Q2, 2023 due to the rise in copper prices. Several countries have requested a 10-year moratorium or pause on the exploitation of marine mining, as there is little information about the damage it could cause. Prismo, Silver Tiger and Reyna Gold reported the best drilling intercepts in Mexico on the fourth week of July, 2023. ON EXPLORATION, In Sonora, Reyna Gold released results from the first ten holes for a total of 1,328m of planned 5,500m from  phase 2 drilling at its La Gloria project. In Sinaloa, Prismo reported results from seven holes drilled at its Palos Verdes project, in the Panuco mining district.  ON MINING, Sierra Metals reported Q2, 2023 production and financial results from its Mexican operations. Mag Silver reported Q2, 2023 production results from its Juanicipio Mine in Zacatecas (56% / 44% Fresnillo plc and Mag respectively). Alamos Gold presented Q2 and H1 production and financial results from its Mulatos Mine in Sonora. Gold Resource announced Q2, 2023 production and financial results from its Don David Gold Mine in Oaxaca.  Agnico reported Q2, and H1, 2023 production and financial results from their Pinos Altos and La India mines in Chihuahua and Sonora respectively. ON FINANCING, Bear Creek closed its previously announced non-brokered private placement for gross proceeds of CAD $8.2M (Mercedes Mine, Sonora). Excellon announced agreement to extend maturity of convertible debentures (La Negra Mine, Queretaro).  ON RESOURCES AND DEVELOPMENT, Silver Tiger released drill results from its ongoing program at El Tigre project in Sonora. Torex provided a Q3, 2023 update on its Media Luna project in Guerrero. SilverCrest provided notice of updated technical report (Las Chispas Mine, Sonora). ON DEALS AND CORPORATE ISSUES, Fortuna announced that it will release its unaudited financial statements and Management Discussions & Analysis (MD&A) for the second quarter 2023 on Wednesday, August 9, 2023, after the market closes (San Jose Mine, Oaxaca). Tocvan acquired 100% interest in Pilar expansion area project in Sonora.  ON SOCIAL RESPONSIBILITY, Fortuna Silver published its fifth annual sustainability report (San Jose Mine, Oaxaca).

ON MEXICO ISSUE

  • Minera Autlan’s revenues in Q2, 2023 fell due to the drop in manganese prices. During the Q2, 2023 the revenues of the Autlán mining company totaled USD $85.8M, that is, they had a loss of 51.2% in relation to the USD $175.7M obtained during the same period of 2022. In addition, between April and June 2023, its operating flow had a 92.9% drop, losing USD $66.4M. In its financial report issued to the Mexican Stock Exchange (BMV), the company explained that said loss was the result of different factors, one of them the drop in the prices of products such as manganese, for the production of manganese ferroalloys, as well as in the inputs for the production of steel. The mining company reported a net loss of USD $20M, which is added to the USD $11.8M lost in the first quarter of this year, thus totaling net losses of USD $31.8M in the first half of the year.
  • Grupo Mexico reported a net profit of USD $840M, which represented an increase of 37.5% compared to the USD $611M reported during the same period of the former year. In addition to the profits, the company owned by Germán Larrea had an increase in its operating flow of 14.6% to a value of USD $1,628M, that is, USD $227M more than in the second quarter of the previous year. In addition to the gains in its net profit and in its operating flow, the conglomerate that operates three divisions (Minera México, Grupo México Transportes and Grupo México Infraestructura), indicated that its revenues during Q2, 2023 amounted to USD $3,453M, which represented a growth of 7.8% compared to the USDS $3,203 that it reached in the same period of the previous year. Finally, it explained that, in the second quarter of the year, 79.2% of its income came from copper, 9.9% from molybdenum, 4% from silver, 2.8% from zinc, and the rest from income from gold and other byproducts.
  • Several countries including Brazil and Costa Rica, have requested a 10-year moratorium or pause on the exploitation of marine mining, as there is little information about the damage it could cause. The debate in the Assembly allows the 168 Member States of the International Seabed Authority (ISA), not just the 36 Council members, to express their views on this issue and formulate a general policy for the protection of the marine environment. At the Council meeting, governments and delegations from countries such as Norway, Mexico, the United Kingdom, China and Nauru continued to push for the mining code to be adopted as soon as possible. On the seabed, as far as is known, are 96% of the cobalt reserves, 84% of the nickel and 79% of the manganese, which are now crucial for the manufacture of batteries, wind generators and photovoltaic panels.
  • Prismo Metals Inc., Silver Tiger Metals Inc., and Reyna Silver Corp., reported the best drilling intercepts in Mexico on the fourth week of July, 2023. Details are shown in the table below:

ON EXPLORATION

  • Reyna Gold Corp., released results from the first ten holes for a total of 1,328m of planned 5,500m from phase 2 drilling at its La Gloria project in Sonora at La Republicana Zone. Drilling highlights include hole LG-23-39 with 1.09 g/t Au over 21.1m, including 14.20 g/t Au, 49 g/t Ag, and 0.32% Pb over 1m, including 1.67 g/t Au, 20 g/t Ag, and 0.3% Pb over 1m, including 1.20 g/t Au over 1m, including 1.77 g/t Au, 20 g/t Ag, and 0.5% Cu over 0.5m, including 9.14 g/t Au and 79 g/t Ag over 0.5m; hole LG-23-32 with 0.96 g/t Au over 19.90m, including 4 g/t Au and 23 g/t Ag over 1m, including 2.04 g/t Au and 20 g/t Ag over 0.75m, including 12.25 g/t Au, 123 g/t Ag, and 0.3% Pb over 0.90m; and hole LG-23-40 with 0.76 g/t Au over 19.05m, including 3.68 g/t Au over 3.85m, including 1.79 g/t Au and 17 g/t Ag over 0.55m, including 9.28 g/t Au, 96 g/t Ag, 0.5% Pb, and 0.3% Zn over 0.50m, including 19.55 g/t Au, 161 g/t Ag, 1.26% Cu, and 0.1% Zn over 0.35m, including 1.38 g/t Au, 14 g/t Ag, 0.1% Pb, and 0.2% Zn over 0.60m. “Two initial holes into Western Zone targeting a large Induced Polarization anomaly produced long intersections of anomalies of zinc and molybdenum with high levels of sulfides (pyrite, pyrrhotite, and chalcopyrite) and multiple gold intersections correlated with bismuth, adding to the evidence of potential proximity to a mineralized porphyry system”.
  • Prismo Metals Inc., reported results from seven holes drilled at its Palos Verdes project, in the Panuco mining district in Sinaloa. Drilling highlights include hole PV-23-25 with 1.36 g/t Au, 384 g/t Ag, 0.11% Cu, 0.1% Pb, and 0.3% Zn (512 g/t AgEq) over 0.3m, plus 38.2 g/t Au, 1,157 g/t Ag, 0.08% Cu, 0.06% Pb, and 0.1% Zn (4,311 g/t AgEq) over 1.35m, including 102 g/t Au, 3,100 g/t Ag, 0.2% Cu, 0.2% Pb, and 0.3% Zn (11,520 g/t AgEq) over 0.5m; hole PV-23-24 with 0.87 g/t Au, 43 g/t Ag, 0.07% Cu, 0.04% Pb, and 1.46% Zn (178 g/t AgEq) over 2m, including 1.84 g/t Au, 95 g/t Ag, 0.05% Cu, 0.05% Pb, and 1.3% Zn (302 g/t AgEq) over 0.84m, plus 3.3 g/t Au, 32 g/t Ag, 0.14% Cu, 0.4% Pb, and 1.6% Zn (384 g/t AgEq) over 1.83m, including 11.90 g/t Au, 60 g/t Ag, 0.2% Cu, 0.7% Pb, and 3.9% Zn (1,234 g/t AgEq) over 0.49m.; and hole PV-23-20 with 1.58 g/t Au, 0.01% Pb, and 0.01% Zn (189 g/t AgEq) over 0.9m, plus 0.21 g/t Au, 53 g/t Ag, and 0.01% Zn (71 g/t AgEq) over 0.20m.

 ON MINING

  • Sierra Metals Inc., reported Q2, 2023 production and financial results from its Mexican operations. At Bolivar Mine, Chihuahua, the company processed 405,987 tonnes of 0.92% Cu, 20 g/t Ag, and 0.42% Au with metallurgical recoveries of 92.92%, 80.45%, and 66.38% respectively, to produce 7.65M Lb Cu, 207K Oz Ag, and 3,678 Oz Au (10.72M Lb CuEq). At Cusi Mine, Chihuahua, Sierra Metals processed 51,750 tonnes of 160 g/t Ag, 0.14 g/t Au, and 0.33% Pb with ,metallurgical recoveries of 81.67%, 58.06%, and 86.54% to produce 217K Oz Ag, 131 Oz Au, and 326K Lb Pb (241K Oz AgEq). In both cases, CuEq and AgEq were calculated at realized prices of USD $3.99/Lb Cu, USD $24.17/Oz Ag, USD $1,977/Oz Au, and USD $0.96/Lb Pb.
  • Mag Silver Corp., reported Q2, 2023 production results from its Juanicipio Mine in Zacatecas (56% / 44% Fresnillo plc and Mag respectively). The project operator (Fresnillo plc) processed 377,018 tonnes with an average grade of 498 g/t Ag to produce 5.27M Oz Ag, 10.6K Oz Au, 7.62M Lb Pb, and 12.14M Lb Zn.
  • Alamos Gold Inc., presented Q2 and H1 production and financial results from its Mulatos Mine in Sonora. During the period Q2, 2023, the company produced 60.3K Oz Au and sold 60.2K Oz Au for a cost of sales of USD $70.9M. The company reported a cost of sales for Oz Au of USD $1,178 per Oz Au sold, a total cash cost and AISC of USD $847 and USD $894 respectively per Oz Au sold, and a capital expenditures (sustaining, growth and capitalized expenditures) of USD $6.5M.  For the period H1, 2023, Alamos has produced 110.8K Oz Au and sold 113.5K Oz Au for a cost of sales of USD $133.3M. The company reported a cost of sales for Oz Au of USD $1,175 per Oz Au sold, a total cash cost and AISC of USD $843 and USD $903 respectively per Oz Au sold, and a capital expenditures (sustaining, growth and capitalized expenditures) of USD $9.2M. The company also provided its 2023 outlook. It plans to produce 175K-185K Oz Au at a total cash and AISC of USD $900-950 and USD $950-1,000 respectively per Oz Au sold; and capital expenditures (sustaining, growth and capitalized expenditures) of USD $19-24M.
  • Gold Resource Corporation announced Q2, 2023 production and financial results from its Don David Gold Mine in Oaxaca. The company milled 113,510 tonnes of 1.59 g/t Au, 86 g/t Ag, 0.37% Cu, 1.6% Pb, and 3.7% Zn to produce 4,637 Oz Au, 289.8K Oz Ag, 748.2K Lb Cu, 3.1M Lb Pb, and 8M Lb Zn and sold 4,287 Oz Au, 274.2K Oz Ag, 732.5K Lb Cu, 2.95M Lb Pb, and 7.03M Lb Zn at realized prices of USD $2,010 per Oz Au, USD $24.03 per Oz Ag, USD $8,397 per tonne of Cu, USD $2,153 per tonne of Pb, and USD $2,485 per tonne of Zn. Total cash cost and AISC were USD $1,333 and USD $1,900 per Oz Au sold respectively. Year to date highlight include a total of 10.8K Oz Au sold and 569K Oz Ag sold, with a working capital of USD $20.8M at June 30, 2023.
  • Agnico Eagle Mines Limited reported Q2, and H1, 2023 production and financial results from their Pinos Altos and La India mines in Chihuahua and Sonora respectively. At Pinos Altos, Chihuahua, Agnico milled 401K tonnes in Q2, 2023 with an average grade of 1.82 g/t Au to produce 22,159 Oz Au at a production cost of USD $87 per tonne, a production cost per Oz Au produced of USD $1,566, and a total cash cost of USDS $1,282 per Oz Au produced. Year to date, Agnico has produced 765K tonnes with an average grade of 1.97 g/t Au to produce 46,293 Oz Au at a production cost of USD $88 per tonne, a production cost per Oz Au produced of USD $1,461, and a total cash cost of USDS $1,196 per Oz Au produced. At La India, Sonora, the company milled 880K tonnes in Q2, 2023 with an average grade of 0.74 g/t Au to produce 17,833 Oz Au at a production cost of USD $27 per tonne, a production cost per Oz Au produced of USD $1,326 and a total cash cost of USDS $1,385 per Oz Au produced. Year to date, Agnico has produced 1.54M tonnes with an average grade of 0.72 g/t Au to produce 34,154 Oz Au at a production cost of USD $28 per tonne, a production cost per Oz Au produced of USD $1,281, and a total cash cost of USDS $1,348 per Oz Au produced. Open pit mining and crusher operations are expected to be concluded in the Q4, 2023.

ON FINANCING

  • Bear Creek Mining Corporation closed its previously announced non-brokered private placement. A total of 16.725M of shares were sold at a price of CAD $0.49 per common share for gross proceeds of CAD $8.2M. Net proceeds will be used for exploration and production improvements at its Mercedes Mine in Sonora, and for general corporate purposes.
  • Excellon Resources Inc., announced agreement to extend maturity of convertible. The company entered into a binding agreement with holders of greater than 662/3% of its outstanding 5.75% secured convertible debentures in the aggregate principal amount of CAD $17.91M to extend the maturity date of the Convertible Debentures by 367 days from July 30, 2023 to July 31, 2024 (La Negra Mine, Querétaro).  

ON RESOURCES AND DEVELOPMENT

  • Silver Tiger Metals Inc., released drill results from its ongoing program at El Tigre project in Sonora. Hole ET-23-463 intersected 0.95 g/t Au, 2 g/t Ag, 0.01% Pb, and 0.01% Zn (73 g/t AgEq) over 36m on the Open Pit Gold Zone, including 2.79 g/t Au, 2 g/t Ag, 0.01% Pb, and 0.01% Zn (212 g/t AgEq) over 6.4m, including 7.18 g/t Au, 5 g/t Ag, 0.01% Pb, and 0.01% Zn (544 g/t AgEq) over 1.5m, plus 0.13 g/t Au, 610 g/t Ag, 0.61% Cu, 0.4% Pb, and 0.7% Zn (711 g/t AgEq) over 9.9m on the Sulphide Zone, including 0.18 g/t, 827 g/t Ag, 0.83% Cu, 0.6% Pb, and 0.9% Zn (963 g/t AgEq) over 6.2m, including 0.19 g/t Au, 1,431 g/t Ag, 2.08% Cu, 0.5% Pb, and 1.7% Zn (1,713 g/t AgEq) over 0.7m, including 0.14 g/t Au, 1,089 g/t Ag, 1.01% Cu, 1.0% Pb, and 1.5% Zn (1,269 g/t AgEq) over 2.7m, including 0.14 g/t Au, 1,166 g/t Ag, 1.04% Cu, 0.8% Pb, and 0.5% Zn (1,3131 g/t AgEq) over 2m, plus 0.17 g/t Au, 213 g/T Ag, 0.24% Cu, 1.7% Pb, and 1.4% Zn (335 g/t AgEq) over 4m on Elk Tigre Vein Zone, including 0.18 g/t Au, 243 g/t Ag, 0.27% Cu, 2 % Pb, and 1.6% Zn (385 g/t AgEq) over 3.2m; and hole ET-23-464 with 0.04 g/t Au, 63 g/t Ag, 0.08% Cu, 0.2% Pb, and 0.03% Zn (80 g/t AgEq) over 3m on the HW Gold Zone, including 0.04 g/t Au, 167 g/t Ag, 0.18% Cu, 0.6% Pb, and 0.06% Zn (204 g/t AgEq) over 0.7m, plus 0.07 g/t Au, 31 g/t Ag, 0.13% Cu, 0.5% Pb, and 0.4% Zn (72 g/t AgEq) over 12m, including 0.08 g/t Au, g9 g/t Ag, 0.09% Cu, 0.7% Pb, and 1.2% Zn (140 g/t AgEq) over 3m, plus 0.33 g/t Au, 43 g/t Ag, 0.03% Cu, 1.7% Pb, and 11.6% Zn (496 g/t AgEq) over 6.7m on the Sulphide Zone, including 0.21 g/t Au, 39 g/t Ag, 0.04% Cu, 2.6% Pb, and 24.6% Zn (936 g/t AgEq) over 0.7m, plus 0.26 g/t Au, 14 g/t Ag, 0.02% Cu, 0.7% Pb, and 0.7% Zn (64 g/t AgEq) over 3.1m. The company plans further drilling to the north and south of the Sulphide Zone to expand this area of known mineralization.
  • Torex Gold Resources Inc., provided a Q3, 2023 update on its Media Luna project in Guerrero. The company reported that development activities continue to advance with the project remaining in budget and on schedule, with 35% complete across engineering, procurement, underground development, and surface construction. With USD $143.6M of expenditures incurred through H1 and the quarterly spend rate expected to increase further, full year guided expenditures are trending towards the lower end of the guided range of $390M to $440M. As of June 30th, 45% of upfront project expenditures had been committed or incurred. The Guajes Tunnel has advanced 4,500 metres with breakthrough on track for early Q1 2024, if not earlier. At South Portal Lower, the main spiral ramp was completed post-quarter end and the primary tunnel has advanced 2,075 metres. Civil works on both sides of the Balsas River continued during the quarter, and concrete installation will commence as the site-wide concrete contractor is selected.   “With development activities tracking to plan, robust financial liquidity, and strong ongoing cash flow from El Limón Guajes, we are well positioned physically and financially to deliver Media Luna on time and on budget, with first concentrate production in Q4 2024 and commercial production in early 2025.”
  • SilverCrest Metals Inc., provided notice of updated technical report (Las Chispas Mine, Sonora). The company announced that it will release results from its updated Technical Report on Monday, July 31, 2023 after market close.

ON DEALS AND CORPORATE ISSUES

  • Fortuna Silver Mines Inc., announced that it will release its unaudited financial statements and Management Discussions & Analysis (MD&A) for the second quarter 2023 on Wednesday, August 9, 2023, after the market closes (San Jose Mine, Oaxaca).
  • Tocvan Ventures Corp., entered into a binding letter of intent with a private title owner for the 100% acquisition of 2,172.7 ha immediately adjacent and north of its Pilar Gold-Silver Project Sonora, Mexico. Prior to closing a definitive agreement, the acquisition is subject to a 60-day due diligence period effective July 25, 2023.  Terms of the agreement include a cash payment of USD $4M and USD $2.5M in common shares which should be issued over the 5-year term of the agreement. A total minimum work commitment of USD $1 million USD is considered over the agreement. The title owner will retain a 2% NSR on the properties acquired. After the initial 5-year term the company can elect to extend the agreement an additional 10 years by starting advanced royalty payments or purchase full title ownership through an additional cash payment of USD  $500K. On Closing of a Definitive Agreement, an initial payment of USD $250K will be made. 

ON SOCIAL RESPONSIBILITY

  • Fortuna Silver Mines Inc., published its fifth annual sustainability report, which details the Company´s performance on key environmental, social, and governance (ESG) indicators during 2022. Highlights include that 75% of the directors are independent, 37.5% of the directors are female; there are 5,233 full-time workers, including 2,174 direct employees, from which 16.84% of all employees are female and19.15% of management positions are female; USD $5.64M were spent on community-related investments; 41.85% of employees come from local communities, and 7.71% of suppliers sourced from local communities; 50% of the operating mines are compliant with ISO 14001; 63% of water used is recycled: and greenhouse gas (GHG) emissions intensity of 17.94 tonnes of carbon dioxide equivalent (tCO2eq) emitted per thousand tonnes of processed ore. (San Jose Mine, Oaxaca).

  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 diatreme breccia in a project in Durango, Mexico.  Photo by Miguel A Heredia.