The Mining and Exploration News in Mexico: Highlights on the First Week of April, 2020

154 - copia (2)

By Jorge Cirett

Amidst the Coronavirus widespread suspension of activities, including mining and exploration, decreed by the Mexican government, a record number of press releases was issued. During the 14th week of the year (March 30th to April 5th, 2020), at least 57 press releases were announced by companies working in Mexico, of which 20 were on how companies were dealing with the situation. ON MEXICO ISSUES, a national decree by the federal government suspended all non-essential activities, which include mining and exploration, until the end of April. The DGM (Mining Regulator) is to manage everything through electronic channels during the Coronavirus contingency (in practical terms, do not expect anything done during this period of time). Previous to the federal government decree, the Sonoran government ordered the stoppage of all work on the mines on the State. Mexico is well poised for a substantial growth in lead and zinc production in 2020 (although the work suspension on mines might prevent it).  ON EXPLORATION, in Sonora, Silver Viper released more drilling results on El Rubi zone of its La Virgina project. Tocvan Ventures commenced geophysical and soil survey programs at its Pilar project. In Chihuahua, Discovery Metals and Kootenay Silver announced the suspension of activities at its Cordero and Columba projects respectively. In Sinaloa, Kootenay Silver announced the suspension of activities at El Copalito. Advance Gold released drilling information on its Tabaqueña project.  ON MINING, Mag Silver, Excellon Resources and Odyssey Marine Exploration presented 2019 results. First Majestic plans to invest $46 M in capital expenditures at its Santa Elena project. GoGold completed the commissioning of a SART palnt at its Parral tailings facilities. Equinox plans to produce 170 K – 190 K Oz Au during 2020 at Los Filos, Guerrero, and invest a total of $75 M. ON FINANCING, Orla Mining closed a bought deal for C$75 M. Mithrill is to conduct a rights issue for share holders in Australia and New Zealand to raise $2.45 M. Southern Silver announced the exercise of 2015 and 2016 warrants and options, raising $1.25 M. ON RESOURCES AND DEVELOPMENT, First Majestic updated the mineral resource estimate on seven of its Mexican properties. Sierra Metals updated the mineral resource estimate on Bolivar, Chihuahua. Prime Mining produced a new resource estimate for its Los Reyes project in Sinaloa. Mag Silver has to obtain funding, or see its 44% JV participation in the Juanicipio project (Zacatecas) dwindle. Great Panther filed two technical reports on the Guanajuato mine complex. Bacanora Lithium granted a contract to GRES on the Sonora Lithium project. Golden Minerals presented a new PEA for its Velardeña properties. GR Silver Mining released underground channel results from the Plomosas project in in Sinaloa. ON DEALS AND CORPORATE ISSUES, GR Silver completed the acquisition of the Plomosas project in Sinaloa. Argonaut Gold and Alio Gold are merging. Orex Minerals and Pan American Silver are forming a JV on the Sandra project in Durango. Riverside is going ahead with the Peñoles project (Durango) spin-off. Mithrill Resources informed on the acquisition of Sun Minerals. Southern Silver entered into an agreement with Monarch Minerals to purchase a mineral concession adjacent to Cerro Las Minas project in Durango. Oroco Resources amended disclosures on the Santo Tomas project technical report. Odyssey Marine Exploration continues with the arbitration process for its offshore phosphate project in Baja California Sur. ON SOCIAL RESPONSIBILITY. Newmont GoldCorp Peñasquito donated 500 COVID-19 tests and delivered thousands of cleansing packages in the communities near the Peñasquito mine in Zacatecas..

ON MEXICO ISSUES

  • Mining halted in Mexico. A national decree by the Mexican federal government suspended all non-essential activities for 30 days on the wake of the fight on the propagation of the coronavirus. Mining is not considered essential thus all operations are due to shut down.
  • Mexico is well positioned for increased lead and zinc production, BNamericas. Supported by expected continued work at Newmont’s Peñasquito mine, Southern Copper’s San Martin mine and Peñoles operations, the lead and zinc Mexican production is poised to grow in 2020. Lead production could increase 27.8% to 194.9 K tonnes, with the expected production of 90.7 K tonnes at Peñasquito. Zinc production could increase 27% to 633.2 K tonnes, with its expected production of 192.8 K tonnes. Both zinc and lead face extremely low prices, with zinc at US$0.85/Lb and lead close to US$0.75/Lb.
  • To reduce coronavirus contagion risks, the Dirección General de Minas (DGM) initiated a protocol to process requests and information only through electronic media, for the time that the contingency lasts (in practical terms, the already slow pace of proceedings at the DGM is coming to halt for the time being).
  • The Mining Fund served its purpose at Jiapaz, Zacatecas, where solar panels were installed to power the water system on La Martinica de Guadalupe neighborhood.
  • The Sonora government issued orders to stop all non-essential activities, including mining, as a mean to reduce the propagation speed of the COVID-19 pandemic in the state.
  • Mining companies that presented press releases on Coronavirus related suspension of activities: Argonaut Gold, Sierra Metals, Pan American Silver, Premier Gold Mines, Equinox Gold, GoGold Resources, Gold Resource, Excellon Resources, Endeavour Silver, Azucar Minerals, Avino Silver & Gold Mines, Agnico Eagle Mines, Almaden Minerals, Alamos Gold, Fortuna Silver, Mithrill Resources, Vizsla Resources, Torex Gold, Great Panther, and Golden Minerals.

ON EXPLORATION

  • Silver Viper Minerals Corp. released drilling results at its La Virginia project in Sonora. The Rubi zone strike length increased by 100 m, to a total of 400 m, where a total of 6,103 m in 20 holes have been collared; a further 852 m in four holes were drilled at the Macho Libre target. The results for the last nine holes are still pending. Highlighted true width intervals comprise: 1.42 m @ 156 gpt Ag, 1.79 gpt Au; 2.84 m @ 249 gpt Ag, 1.55 gpt Au (including 0.36 m @ 1,584 gpt Ag, 5.56 gpt Au); 17.04 m @ 28 gpt Ag, 0.69 gpt Au; 1.07 m @ 52 gpt Ag, 1.27 gpt Au; 1.07 m @ 124 gpt Ag, 3.32 gpt Au; 4.26 m @ 38 gpt Ag, 0.64 gpt Au; 6.04 m @ 74 gpt Ag, 0.99 gpt Au (including 1.78 m @ 187 gpt Ag, 2.48 gpt Au. The company recently completed a 4,800-hectare; 718 line-km helicopter borne magnetic-radiometric geophysical survey centered on El Rubi zone.
  • Discovery Metals Corp. announced the temporarily suspension of all exploration activities at its Mexican operations due to the COVID-19 risks. “Discovery has already completed 48 holes totaling 17,500 metres of its planned 30,000 – 35,000 metre Phase 1 drill program. The Company will provide ongoing exploration updates for the 34 drill holes not previously press released once results have been received and validated”. Discovery had a cash balance of CAD$24 M by the end of 2019 (Cordero, Chihuahua).
  • Tocvan Ventures Corp. announced the commencement of the 2020 field program at the Pilar project in Sonora. The focus is to expand the known areas of mineralization, gain a better understanding of structural controls, identify mineralization targets and define drill targets. A multiple-task (?) geophysical survey is underway concurrently with a close-spaced soil sampling program. These surveys will be followed up with structural refining, XRF survey across the property and reviewing historical drill holes.
  • Kootenay Silver Inc. temporarily suspended the current drill programs at its Columba (Chihuahua) and Copalito (Sinaloa) projects, to reduce the propagation risks of the Coronavirus.
  • Advance Gold Corp. released information on drilling at its Tabasqueña project in Zacatecas. One hole was abandoned because of challenging drilling conditions; a second hole intercepted a black slate with small sulphide lenses 0.3 cm to 1 cm in thickness, this unit explains the chargeability anomaly detected by the geophysical survey. The best intercept was 1.25 m @ 2.79% Pb; the third hole also intersected the sulphide bearing black slate unit, assays pending. Teck’ San Nicolas VMS project is 11 kilometers East of Tabasqueña.

ON MINING

  • First Majestic Silver Corp. plans to invest US$46.3 M in capital expenditures at its Santa Elena mine in Sonora. Exploration, the installation of an autogenous mill, exploration and development of the Ermitaño West, mine access preparation and prefeasibility studies are among the use of the funds involved.
  • GoGold Resources Inc. reported the completion of commissioning of the SART plant at its Parral Tailings facility in Chihuahua. “The main economic drivers are the recovery of a high-grade saleable copper sulfide product, the re-generation of cyanide, which is the largest single operating cost at Parral, and improve the leaching efficiency of the heap”. GoGold reduced the need to purchase cyanide by $200 K in March.
  • Excellon Resources Inc. reports 2019 annual and Q4 financial results. At Platosa, in Durango, 19.8 K tonnes @ 435 gpt Ag, 4.84% Pb, 6.39% Zn were processed, recovering 91.7% Ag, 80.2% Pb, 76.5% Zn to produce 259.2 K Oz Ag, 1.69 M Lb Pb, 2.06 M Lb Zn during the quarter. For the full year 75.2 K tonnes @ 409 gpt Ag, 4.75% Pb, 6.82% Zn were processed , recovering 89.9% Ag, 79.2% Pb. 77.7% Zn to produce 1.05 M Oz Ag, 6.1 M Lb Pb, 8.4 M Lb Zn, or 1.93 M Oz AgEq.
  • Odyssey Marine Exploration Inc. reported results for the full year 2019.
  • Equinox Gold Corp. provided production guidance for 2020, including figures from its operations in Mexico. At the Los Filos mine in Guerrero, production is set to range between 170 K to 190 K Oz Au, at an AISC of $1,000 to $1,050 per Oz Au, sustaining capital of $24 M and Non-sustaining capital of $51 M. “The Company is advancing an expansion of the Los Filos mine complex including enlarging the Los Filos open pit, developing a second underground mine (Bermejal), adding a new open pit (Guadalupe) and constructing a new carbon in leach (“CIL”) plant to process higher-grade ore…….. Equinox Gold has budgeted a total capital spend of $75 million at Los Filos during 2020. Non-sustaining capital of $51 million relates primarily to the expansion project and includes $20 million for pre-stripping of the Guadalupe open pit and $23 million allocated to Bermejal underground development”.

ON FINANCING

  • Newmont Corp. has announced expiration and final results of the tender offers for its 3.5% senior notes due 2022 and Goldcorp’s 3.7% notes due 2023. (Peñasquito, Zacatecas).
  • Mithrill Resources Ltd. will be conducting a pro-rata non-renounceable rights issue to allow shareholders, of ordinary shares with a registered address in Australia or New Zealand, to apply for one share for every ordinary share held, to raise $2.45 M (Copalquin, Durango).
  • Southern Silver Exploration Corp. informed recent warrant and option exercised during the current fiscal period. Warrants and options issued in 2015 and 2016 were exercised for $1.25 M in gross profits (Cerro La Mina, Durango).
  • Orla Mining Ltd. closed its previously announced bought deal financing with a syndicate of underwriters led by Stifel GMP and including Desjardins Capital Markets, Paradigm Capital and Cormark Securities Inc. for aggregate gross proceeds of C$75 M.

ON RESOURCES AND DEVELOPMENT

  • First Majestic Silver Corp. updated mineral reserve and mineral resource estimates for the San Dimas (Durango), Santa Elena (Sonora) and La Encantada (Coahuila) producing mines, as well as from its San Martín (Jalisco), La Parrilla (Durango), Del Toro (Zacatecas) and La Guitarra (Estado de Mexico) properties.

First Majestic Reserves and Resources 2019

  • Sierra Metals Inc. updated mineral reserve and mineral resource estimates for its Bolivar mine in Chihuahua. Mineral reserves decreased by 2.5 M tonnes on mining depletion from 2017, but measured, indicated and inferred resources have significantly grown.

Bolívar Reserves and Resources to 201911

  • Mag Silver Reported 2019 annual results. Development of the Juanicipio mine (Zacatecas) and processing plant continue, with the plant expected to commence commissioning in mid-2021. Underground development is ongoing, exceeding now 26 Km. Remaining pre-operative initial capital is estimated at $305 M, although this figure can be reduced by cash in hand of the operator of the JV (Fresnillo 56%, Mag 44%) and expected cash flow from mineralized material extracted and processed at the Fresnillo’s mine facilities commencing in mid-2020. “The Company needs to raise additional capital in the future in order to meet its full share of initial capital required to develop the Juanicipio Project. Mag does not generate operating cash flow at this time to fund such obligations, and accordingly, future liquidity will depend upon its ability to arrange debt or additional equity financings. The Company is currently evaluating several proposals. The inability of MAG to fund its 44% share of cash calls would result in dilution of its ownership interest in Minera Juanicipio in accordance with the shareholders’ agreement”. At the end of the year Mag had $71.86 M including cash and cash equivalents of $72.36 M AuEq.
  • Great Panther Mining Ltd. filed two technical reports regarding the Guanajuato mine complex. “The reports are titled “NI 43- 101 Mineral Resource Update Technical Report on the Guanajuato Mine Complex, San Ignacio Mine, Guanajuato State, Mexico”, dated March 17, 2020, and “NI 43-101 Mineral Resource Update Technical Report on the Guanajuato Mine Complex, Guanajuato Mine, Guanajuato State, Mexico”, dated March 27, 2020”.
  • SilverCrest Metals Inc. released protocols to minimize exposure to coronavirus, in order to decrease the risk to employees, contractors, families and communities near Las Chispas project in Sonora.
  • Evrim Resources Corp. updated the resource on the Ermitaño project in Sonora, of which it holds a 2% NSR. Property owner First Majestic Silver Corp. announced a 15% increase in grade and a 345% increase in contained AgEq ounces in the indicated resources compared to the previous estimate. The indicated resources are 2.1 M tonnes @ 4.59 gpt Au, 70 gpt Ag, containing 311 K Oz Au and 4.73 M Oz Ag; the inferred resources stand at 3.73 M tonnes @ 3.08 gpt Au, 58 gpt Ag, containing 370 K Oz Au, 6.98 M Oz Ag.
  • Bacanora Lithium. Announced the granting of a contract to GR Engineering Services for engineering, acquisition and construction services on the Sonora lithium project.
  • Prime Mining Corp. released a new resource estimate for its Los Reyes project (formerly Guadalupe de Los Reyes) in Sinaloa. The pit constrained resources range from 19.75 M tonnes @ 1.31 gpt AuEq measured and indicated resources (M&I) containing 833.1 K Oz AuEq and 7.1 M tonnes @ 1.14 gpt AuEq in inferred resources containing 261.1 K Oz AuEq at a 0.22 gpt AuEq cutoff; to 5.91 M tonnes @ 2.72 gpt AuEq M&I resources and 1.68 M tonnes @ 2.59 gpt AuEq containing 516.2 K Oz AuEq and 140.5 K Oz AuEq respectively, at a cutoff grade of 1.0 gpt AuEq. The pit strip ratio is calculated as 4.6 to 1 waste to ore in six separate pits.
  • Golden Minerals Co. announced positive results from the updated mineral resource estimate and preliminary economic assessment (PEA) for its Velardeña properties in Durango. The PEA states a pre-tax net present value of $85.9 M at an 8% discount rate, an internal rate of return of 138.6%, pre-production capital cost of $10.27 M, post production and working capital $15.93 M and a life of mine of 10 years to produce 10.2 M Oz Ag, 119 K Oz Au. The resource estimate including sulfide and oxide ore comprises 1.35 M tonnes @ 307 gpt Ag, 4.92 gpt Au, 1.54% Pb, 1.78% Zn in measured and indicated resources, containing, 13.34 M Oz Ag, 214 K Oz Au, 45.8 M Lb Pb, 53 M Lb Zn; and 1.76 M tonnes @ 354 gpt Ag, 4.73 gpt Au, 1.72% Pb, 1.86% Zn, containing 20.1 M Oz Ag, 268 K Oz Au, 67.1 M Lb Pb, 72.3 M Lb Zn.
  • GR Silver Mining Ltd. released assay results from initial underground channel sampling from the San Juan workings at the Plomosas Silver project. San Juan is one of six priority areas with underground development not yet exploited by previous owners. Some of the highlighted composites comprise 2.1 m @ 0.30 gpt Au, 552 gpt Ag, 0.7% Pb, 1.0% Zn (including 0.40 m @ 1.2 gpt Au, 3,003 gpt Ag, 2.9% Pb, 3.1% Zn); 5.0 m @ 0.28 gpt Au, 816 gpt Ag, 0.9% Pb, 0.5 % Zn; 2.0 m @ 0.51 gpt Au, 1,145 gpt Ag, 0.9% Pb, 0.4% Zn; 2.8 m @ 0.42 gpt Au, 482 gpt Ag, 0.4% Pb, 0.4% Zn; 9.3 m @ 0.13 gpt Au, 346 gpt Ag, 0.7% Pb, 1.0% Zn; 3.0 m @ 0.11 gpt Au, 485 gpt Ag, 0.2% Pb, 0.3% Zn.

ON DEALS AND CORPORATE ISSUES

  • GR Silver Mining Ltd. Has completed the acquisition of the Plomosas silver project in Sinaloa, from First Majestic Silver Corp. .GR Silver paid CDN$100 K, granted First Majestic a 2% NSR, of which half could be bought for US$1 M, and issued First Majestic 17.1 M shares of GR Silver. The project comes with six areas at the drilling/resource stage, with 563 drill holes totalling over 100,000 m of core drilling and the mining infrastructure of the Plomosas mine, that produced over 2.5 M tonnes of Pb-Zn-Ag ore.
  • Argonaut Gold Inc. and Alio Gold Inc. have entered into a definitive agreement for an at-market merger whereby Argonaut will acquire all of Alio shares. The transaction creates an intermediate producer with four operations rendering 235 K Oz AuEq per year from four mines and presence in Mexico, Canada and USA, and a pipeline that includes Ana Paula (Guerrero), Cerro del Gallo (Guanajuato) and Magino (Canada).
  • Orex Minerals Inc. entered into an agreement to form a JV with Pan American Silver Corp. to explore and develop the Sandra (formerly Sandra Escobar) project in Durango. Orex and Pan American will own a 40% and 60% interest in the JV.
  • Riverside Resources Inc. has received requisite shareholder approval for the spin-out of the Peñoles Project (Durango) to its shareholders. “Once the Arrangement becomes effective, Riverside shareholders will own shares in two public companies: Capitan, which will focus on the development of the Peñoles Project, and Riverside, which will continue to generate prospective mineral properties”.
  • Mithhrill Resources Ltd. Informed on the proposed acquisition of Sun Minerals Pty Ltd., which holds an option to earn up to 100% interest on the Copalquin project in Durango. Due diligence was completed, a formal share agreement for the acquisition of all issued share capital of Sun Minerals was executed and shareholder approval received. On view of recent market developments, Mithrill and Sun Minerals agreed that Mithrill is to raise a minimum of A$1.5 M.
  • Southern Silver Exploration Corp. entered into an agreement with Monarch Minerals Inc. to purchase the El Sol mineral concession in Durango, near the Sothern Silver and Electrum Global Holdings L.P. Cerro Las Minas JV project. The purchase will not form a part of the Cerro Las Minitas JV. Acquisition cost is $US300 K payable in three equal installments on signature, 12 and 18 months, with the vendor retaining a 2% NSR that can be bought by Southern Silver at any time for US$1 M.
  • Oroco Resource Corp. wishes to clarify and amend its disclosures with respect to its Santo Tomas project in Sinaloa. “The BCSC reviewed the Company’s October, 2019 and March, 2020 corporate presentations (the “Presentations”) and its current technical report dated August 22, 2019 and titled “Technical Report Geology, Mineralization, and Exploration of the Santo Tomas Cu-(Mo-Au-Ag) Porphyry Deposit Sinaloa, Mexico” authored by D. A. Bridge, P. Geol.” (the “Report”). Both the current Presentation and the Report have been removed from the Company’s website pending revision. The disclosure issues in the Presentations and the Report with respect to National Instrument 43-101 (the “Instrument”) and Form 43-101F1 are summarized in the following discussion”.
  • Odyssey Marine Exploration Inc. has launched a NAFTA arbitration process on its “Exploraciones Oceánicas” phosphate project off the Pacific coast of Baja California Sur. “The Arbitral Tribunal, consisting of three international arbitrators well-versed in international investment treaties, has been constituted and the parties are now in the process of finalizing the arbitration schedule and procedures with the Tribunal……..“We intend to continue to work diligently and in good faith with Mexico’s current administration to achieve an equitable resolution of this dispute and to help Mexico provide fertilizer to its farmers, but we are prepared to proceed with the full NAFTA arbitration process if necessary, and have recently received increased litigation funding specifically to support this case”. The Exploraciones Oceánicas project contains an estimated 588 M tonnes of phosphate, at a depth of 70-90 m, lying 25 to 40 km from the coast, with almost no overburden.

ON SOCIAL RESPONSIBILITY

  • Newmont Goldcorp donates 500 COVID-19 tests in Zacatecas. The donation amounts to more than $2 M pesos.
  • Newmont Peñasquito delivered 3,000 cleansing packages, in the communities near the Peñasquito mine in Zacatecas, amidst the fight against the spread of the Coronavirus. The packages are to be delivered in and by local health institutions.

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

On the image below: Hematite-goethite stained quartz vein in an orogenic gold system, Oaxaca. Picture by Jorge Cirett.

154 - copia (2)

The Mining and Exploration News in Mexico: Highlights on the Fourth Week of March, 2020.

 

Colloform-banded quartz vein

By Miguel A Heredia

During the thirteen week of the year (March 23th to March 29th, 2020), at least 28 press releases were announced by companies working in Mexico, with seven commenting on Mexican issues, six disclosing deals and corporate issues, five informing on exploration results, four announcing financial rounds, four discussing issues on social responsibility, one communicating production and financial results, and one reporting on resources and developments.  ON MEXICO ISSUES, Fortuna Silver reported on March 24, 2020, an illegal road blockade on its San Jose mine in Oaxaca but fortunately on March 25, 2020 the company announced it had been lifted and the mine operations were resumed again. La Herradura mine (owned by Fresnillo plc), in the north of Sonora, is an example of how women have inserted themselves into industries historically dominated by men. Several mining companies operating in Mexico have implemented a series of measures to safeguard the health of their workers, in the face of the advance of the COVID-19 pandemic. Azure, Capstone, Evrim, and Premier Gold were some of the companies which reacted on the COVID-19 pandemic.  ON EXPLORATION, In Sonora, Azure reported a new Cu discovery at its Alacrán project and Ridgestone commenced a drilling program at its Rebeico project. In Chihuahua, Radius provided an update of its Amalia project. In Durango, Golden Tag announced the authorization from SEMARNAT to drill up to twenty one holes at its San Diego project.  In Jalisco, GoGold announced drilling results from eight holes collared at its Los Ricos project. ON MINING, Mexus announced operating cost lower than expected and confirmed positive cash flow obtained (Santa Elena mine, Sonora). ON FINANCING, Equinox Gold and Leagold received notice from Pacific Road Resources Fund to acquire 461,947 Equinox common shares for proceeds to the company of $2,854,832 and $9,278,209 aggregate principal amount of 5-years convertible notes (Los Filos mine, Guerrero). Orla announced bought deal financing for gross proceeds of CAD $75,030,000 (Camino Rojo project, Zacatecas).  VVC closed the first tranche of a non-brokered private placement for gross proceeds of CAD $951,560 (Kaity project, Chihuahua). Gold Resource declared March monthly dividend to its shareholders (El Aguila mine, Oaxaca).  ON RESOURCES AND DEVELOPMENT, Fortuna Silver updated mineral resource and mineral reserve as of December 31, 2019 for its San Jose mine, Oaxaca. ON DEALS AND CORPORATE ISSUES, Alamos Gold filed its annual information form and 2019 annual report (Mulatos mine, Sonora). GoGold announced results from its annual general meeting of shareholders (Los Ricos project, Jalisco). McEwen reported that it has fallen below the New York Stock Exchange (NYSE) continued listing requirement related to the price of its common stock (El Gallo mine, Sinaloa). Orla Mining announced Layback agreement with Fresnillo Plc (Camino Rojo project, Zacatecas). Evrim reported that it has terminated the option agreement with Harvest Gold on its Cerro Cascaron project in Chihuahua.   Radius entered into an option agreement to acquire, from a local concessionaire, 100% interest in the Plata Verde property in Chihuahua. ON SOCIAL RESPONSIBILITY, Argonaut Gold confirmed its commitment to the environment, performing and promoting good ecological practices in Sonora and Durango. Minera Autlán informed about their commitments regarding the responsible and sustainable Water Management. Grupo México reported that it will advance the delivery of a hospital in Juchitán, Oaxaca, to support efforts to combat the COVID-19 pandemic in the country. Representatives of the mining company Media Luna (Torex Gold) expressed their solidarity with the problem that the country is suffering due to the Coronavirus pandemic and donated mouthwash and antibacterial gel to the Guerrero health system (El Limón-Guajes mine complex, Guerrero).

ON MEXICO ISSUES

  • Fortuna Silver Mines Inc., reported on March 24, 2020, an illegal road blockade on its San Jose mine in Oaxaca by a group of individuals to protest the action taken by the Electoral Tribunal of the State of Oaxaca in revoking his appointment as major. Fortunately, the company announced the next day that it has been lifted, and the mine operation was resumed.
  • La Herradura mine(owned by Fresnillo plc), in the north of Sonora, is an example of how women have inserted themselves into industries historically dominated by men. There is still a long way to go in gender equality in industries such as mining, but there are examples that this is possible. For the mining industry, women’s work has given good results in cases such as La Herradura. For their part, women workers see mining as an opportunity to earn a living wage with opportunities for job growth. It may not be the first image that comes to mind, but women miners are a reality in Mexico.
  • Several mining companies operating in Mexico, have implemented a series of measures to safeguard the health of their workers, in the face of the advance of the COVID-19 pandemic.
  • Azure Minerals Limited, suspended all field exploration and drilling at the company´s project, and suspended the trial processing program of high-grade ore from Oposura with the bulk concentrates bagged into bulker bags which have been stored in the Company’s warehouse, and Implemented required policies and procedures which include “no travel”, “no congregating in groups”, “social distancing” and “working from home”.
  • Capstone Mining Corp., reported that its priority is to ensure the health and safety of their people, and stated that until now, COVID-19 has not impacted production or concentrate shipments at its Cozamin mine in Zacatecas.
  • Evrim Resources Corp., took the decision to send all his employees to work remotely to keep them safe and healthy.
  • Premier Gold Mines Limited, announced that its Mercedes mine in Sonora has not been materially impacted by the COVID-19 pandemic. The company is focused on protect their employees from the coronavirus outbreak. It has introduced company-wide health and safety protocols and has implemented controls and safety procedures at each site.

ON EXPLORATION

  • Azure Minerals Limited, reported, within its El Alacrán project, a new Cu discovery called Gregors by doing RC drill-testing a buried VTEM geophysical anomaly coincident with a 100m by 100m outcrop of breccia and gossan. Significant drill intersections were encountered in hole GGC-02 with 0.68% Cu over 30m, including 2.3% over 6m, and hole GGC-003 with 0.96% Cu over 18m, including 7.03% Cu over 1.5m. Azure is undertaking a detailed data review and interpretation plus initial mineralogical and metallurgical studies to assess potential and assist with planning a follow-up drill program. Additionally, the company also reported a single hole collared at San Simon mine located 700m away from its Loma Bonita resource area, which returned 2 g/t Au and 64 g/t Ag over 21m, including 3.35 g/t Au over 6.0m. Further drilling to test the vuggy silica mineralized zone, which is interpreted to extend further to the east and south beneath the Cerro San Simon hill, will be undertaken in the next drill program.
  • Ridgestone Mining Inc., announced the commencement of a 1,500m drilling program in 10 holes at its newly discovered Au-Cu bearing New Year zone at its Rebeico project in Sonora. This first phase drilling program will be focused on testing at depth the high grade Au-Cu mineralization discovered in 2019 with surface sampling which returned up to 12.95 g/t Au and 0.65% Cu, testing the southern portion of the nearby Alaska Vein south of the hole 18REB10 which intersected 36.10 g/t Au over 1.5m, and also test the potential junction of the >New Year zone with the southern part of the Alaska vein.
  • Radius Gold Inc., provided an update for its Amalia project in Chihuahua. Highlights include the development of its El Cuervo target, located 3.8km southeast of the current drilled area of san Pedro, where up to 40m wide of silicification, breccias and veining with strong Au and Ag geochemistry has been mapped and sampled over a length of 750m. Radius also reported that a drill permit is in progress for a fourth phase of drilling at its Amalia project. The fourth phase of drilling will consists of 9 deep holes to test down dip and lateral extension of the high grade Au-Ag mineralization defined at san Pedro area.
  • Golden Tag Resources Ltd., announced the authorization from SEMARNAT to drill up to twenty one holes at its San Diego project in Durango. The company plans to conduct a 2,000m drilling program in eight holes to test the near-surface continuity of mineralization identified in previous drilling programs at the Trovador-MS and El Jal-Arroyo Zone target areas.
  • GoGold Resources Inc., reported drilling results from eight holes collared at its Los Ricos project in Jalisco, including three at San Juan and five in the Main Area. Significant drill intersections were encountered in hole LRGG-20-115 (Main Area) with 0.61 g/t Au and 153 g/t Ag (2.65 g/t AuEq or 203 g/t AgEq) over 19.5m, including 1.17 g/t Au and 281 g/t Ag (4.93 g/t AuEq or 370 g/t AgEq) over 9.6m; and hole LrGG-20-119 (Main Area) with 0.91 g/t Au and 135 g/t Ag (2.71 g/t AuEq or 203 g/t AgEq) over 26.4m, including 1.6 g/t Au and 196 g/t Ag (4.21 g/t AuEq or 316 g/t AgEq) over 12.6m.

ON MINING

  • Mexus Gold US, announced it is producing Au at a cost of USD $376/Oz and confirmed it is operating at a positive cash flow. Mexus is planning to produce 10 Oz Au per day within 60 days (Santa Elena mine, Sonora).

ON FINANCING

  • Equinox Gold Corp. and Leagold Mining Corporation,  received notice from Pacific Road Resources Fund to acquire 461,947 Equinox common shares for proceeds to the company of $2,854,832 and $9,278,209aggregate principal amount of 5-years convertible notes. The Company intends to use the proceeds from the shares and notes for general corporate and working capital purposes (Los Filos mine, Guerrero).
  • Orla Mining Ltd., announced a bought deal for gross proceeds of CAD $75,030,000. The company also granted an over-allotment option to purchase up to an additional 5.49M common shares at the offering price. If this option is exercised in full, an additional CAD $11,254,500 in net proceeds will be raised. At the end, the total aggregate gross proceeds of the offering will be CAD $86,284,500. Net proceeds will be used for exploration and development of its Camino Rojo project in Zacatecas.
  • VVC Exploration Corporation, closed the first tranche of a non-brokered private placement for gross proceeds of CAD $951,560. Net proceeds will be used to develop its Katya project in Chihuahua, including costs associated with various permits, metallurgical bench testing of the copper mineralization, and investigation, evaluation and implementation of the Gloria Pilot Mining Project.
  • Gold Resource Corporation, declared March monthly dividend of one-third of a cent per common share to its shareholders (El Aguila mine, Oaxaca).

ON RESOURCES AND DEVELOPMENT

  • Fortuna Silver Mines Inc., updated mineral resource and mineral reserve as of December 31, 2019 at its San Jose mine, Oaxaca. Proven reserves are 232,000 tonnes of 2.12 g/t Au and 311 g/t to contain 16K Oz Au and 2.3M Oz Ag, and Probable reserves are 3, 704,000 tonnes of 1.58 g/t Au and 239 g/t Ag to contain 188K Oz Au and 28.5M Oz Ag. Total proven + probable reserves are 3,936,000 tonnes of 1.61 g/t Au and 243 g/t Ag to contain 204K Oz Au and 30.8M Oz Ag. It also reported that has measured resources of 17,000 tonnes of 0.8 g/t Au and 104 g/t Ag to contain 1K Oz Au and 0.1M Oz Ag, and Indicated resources of 538,000 tonnes of 0.7 g/t Au and 105 g/t Ag to contain 12K Oz Au and 1.8M Oz Ag. Measured + Inferred resources are 555,000 tonnes of 0.7 g/t Au and 105 g/t Ag to contain 13K Oz Au and 1.9M Oz Ag. In addition it reported inferred resources of 3,889,000 tonnes of 0.96 g/t Au and 131 g/t Ag to contain 120K Oz Au and 16.3M Oz Ag. (Mineral Resources are exclusive of Mineral Reserves).

ON DEALS AND CORPORATE ISSUES

  • Alamos Gold Inc., filed its annual information form and 2019 annual report, including its audited financial statement for the year ended December 31, 2019 (Mulatos mine, Sonora).
  • GoGold Resources Inc., announced results from its annual general meeting of shareholders (Los Ricos project, Jalisco).
  • McEwen Mining Inc., reported that it has fallen below the New York Stock Exchange (NYSE) continued listing requirement related to the price of its common stock. The NYSE requires that the average closing price of a listed company’s common stock be above US$1.00 per share, calculated over a period of 30 consecutive trading days (El Gallo mine, Sinaloa).
  • Orla Mining Ltd., announced a non-binding layback letter agreement with Fresnillo Plc., to extend its Camino Rojo oxide pit onto part of Fresnillo´s mineral concession. Under the terms of the agreement, Orla will pay Fresnillo a total cash consideration of USD $62.8M: USD $10M due upon the execution of the definitive layback agreement; USD $15M due Orla having received all funding and permits required for construction and development or July 1st, 2020; USD $15M due no later than 12 months following the commencement of commercial production or December 1st, 2022; USD $22.8M due no later than 24 months following the commencement of commercial production or December 1st, 2023; the amounts for the third and fourth payments shall bear an interest of 5% per annum from July1, 2020 until the date of payment. (Camino Rojo project, Zacatecas).
  • Evrim Resources Corp. and Harvest Gold Corporation, announced the termination of its option agreement on Cerro Cascaron project in Chihuahua. Evrim is seeking a new partner to continue the exploration of this mining property.
  • Radius Gold Inc., entered into an option agreement with a local concessionaire, to acquire 100% interest in the 300 Has Plata Verde property in Chihuahua by making staged payments totaling over four years USD $880K with the final payment equal to USD $400K at the end of year four. An USD $8K signing payment has already been paid. The owner retains a 1% NSR which Radius can buy back for USD $1M. “Plata Verde, silver mineralization occurs as massive to crustiform banded barite calcite with silver chlorides, sulphosalt minerals and native silver infilling and cementing fractures and breccia within a basaltic/andesite extrusive volcanic. The basaltic/andesite host occurs at the base of the Upper Rhyolitic Volcanics of the Northern Sierra Madre. In general the host volcanics and associated silver mineralization is covered by the overlying rhyolitic ignimbrites and is only exposed along the length of a small creek”. Initial prospecting rock chips by Radius geologists have returned silver grades between 5 and 1,070 g/t Ag.

ON SOCIAL RESPONSIBILITY

  • Argonaut Gold Inc., confirmed its commitment to the environment, performing and promoting good ecological practices in Sonora and Durango, such as recycling all material used in its operations, confining all dangerous resources, increasing the use of renewable energy, preserving the flora and fauna species, taking care of air quality and generating new alternatives to help capture water in the aquifers, etc. The company offered 664 talks in its operation units in Sonora and Durango during 2019 to foster its commitment to the environment.
  • Minera Autlán SAB de CV., informed about their commitments regarding the responsible and sustainable management of Water. Autlán promotes responsible water consumption in all its mining units. This consists of reusing as much water as possible, in order to satisfy the greatest number of operations and guarantee the sustainability of the environment. The trend is to continue reducing the amounts used, making resource management much more effective through treatment processes.
  • Grupo México , reported that it will advance the delivery of a hospital in Juchitán, Oaxaca, to support efforts to combat the COVID-19 pandemic in the country. The hospital, with a constructed area of ​​6,800 square meters and a planned capacity of more than 60 beds, was designed to meet the specific requirements of the citizens of the municipalities of Juchitán de Zaragoza, Santo Domingo de Tehuantepec, Matías Romero and Salina Cruz, who were among the most affected in the region after the 2017 earthquakes.
  • Representatives of the mining company Media Luna (Torex Gold), expressed their solidarity with the problem that the country is suffering due to the Coronavirus pandemic and donated to the health system of Guerrero state, 3,500 covers mouths and more than 1,000 liters of antibacterial gel due to the shortage of these products across the country.

 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 colloform-banded quartz vein in a low-sulphidation epithermal system in Zacatecas, Mexico.  Photo by Miguel A Heredia.

The Mining and Exploration News in Mexico: Highlights on the Third Week of March, 2020

IMG_0770b

By Jorge Cirett

During the 12th week of the year (March 16th to March 22nd, 2020), at least 30 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, Javier Corral, Chihuahua’s governor proposed the Major’s National Association they take part on the current constitutional controversy about the use of the Mining Fund. Mining companies around Mexico and the Camimex prepare for the Coronavirus by cancelling meetings, fairs and gatherings, and promote precautionary measures among its personnel, contractors and communities The AIMMGM convention in Chihuahua, the AMSAC convention in Cananea, and the Discoveries Conference in Guadalajara were to be held at the end of April, but have been re-scheduled due to the Coronavirus effects to later dates on July, August and September. ON EXPLORATION, in Baja California, One World Lithium has obtained the drilling, environmental and occupancy permits to commence drilling on the southern part of the project. In Sonora, Colibri announced the completion of phase 1 drilling at Evelyn. In Chihuahua Century Metals and Reyna Silver are to continue the exploration of the Guigui project near Santa Eulalia.  ON MINING, Starcore filed the results of the last quarter. Mexus Gold continues leaching in Sonora. Avino Silver, Torex gold, McEwen Mining, Impact Silver, Great Panther, Excellon, Argonaut Gold, GoGold Resources, Endeavour Silver, Equinox Gold and Fortuna Silver informed on the measures taken to protect their business, people and communities from the effects of the Coronavirus epidemic. ON FINANCING, Silver Spruce entered into debt settlement agreements for $350 K. First Majestic intends to repurchase up to 10 M shares. SilverCrest Metals received notice from National Bank Financial to terminate their agreement to purchase up to $9.1 M shares. Almaden Minerals amended its private placement to reflect current market conditions. ON RESOURCES AND DEVELOPMENT, Prime Mining informed on recent work at its Guadalupe de Los Reyes project in Sinaloa, and how it might impact on the next resource estimation.  ON DEALS AND CORPORATE ISSUES, Century Metals provided an update on the acquisition of Reyna Silver (and its Guigui project in Chihuahua). Riverside Resources informed on its capitalization, business and current BHP strategic funding. Excellon Resources continues on the acquisition path of Otis Gold. Hecla Mining informed on current hedges to deflect the turmoil on the metals market.  ON SOCIAL RESPONSIBILITY. Minera Media Luna informed on a community campaign to prevent the spread of COVID-19 on neighboring villages to its operations.

ON MEXICO ISSUES

  • Javier Corral, Chihuahua’s governor, proposed on the Executive Committee of the Major’s National Association (Asociación Nacional de Alcaldes) that they take part on the constitutional controversy promoted by the Chihuahua government to rescue the Mining Fund from the Federal government.
  • Mining Companies across Mexico prepare for the Coronavirus, Grupo Mexico, Agnico Eagle, Alamos Gold, Fresnillo PLC and Minera El Boleo are among the companies that have installed policies aimed to reduce the chances of infection among its employees, workers and contractors, including the cancellation of fairs and meetings, as well as work from home programs and access control programs at its installations.
  • The AIMMGM convention in Chihuahua to be held on 21-24 April has been changed to 20-24 July, aiming to reduce the Coronavirus spread on the population. On the same grounds the AMSAC (Asociación de Mineros de Sonora) that was to be held on 29 April-1 has been postponed to 3-4 September.
  • The Discoveries Mining Conference to be held in Guadalajara in late April has been postponed, on the same venue, to 10-12 August 2010.
  • CAMIMEX (Cámara Minera de México) informed it is reducing all non-essential activities and avoiding in-person meetings, although maintaining the offices open to facilitate operations. The organism makes a strong plea to companies and the general population to follow all the preventive measures possible.

ON EXPLORATION

  • Colibri Resource Corp. announced the completion of the phase 1 drilling program at its Evelyn project in Sonora. Five holes were collared in the program that measured 815.6 m in total.
  • Century Metals Inc. and Reyna Silver Corp. are engaged on a merger that intends to advance the 4,554 ha Guigui project in the Santa Eulalia district in Chihuahua. Studies on the project for the last 25 years include detailed geologic mapping and sampling, gravimetrics, ground magnetics, CSAMT (Controlled Source Audio Magneto-Tellurics), NSAMT (Natural Source Audio Magneto-Tellurics), Airborne ZTEM/magnetics, satellite hyperspectral and definition of drilling targets. The planned budget for 10,000 m for compiling and re-processing all prior work and 10,000 m of diamond drilling is $2.44 M.
  • One World Lithium Inc. announced that drilling, environmental, and occupancy permits have been approved to drill two key locations at the south end of the Salar del Diablo Property in Baja California. The proposed exploration holes are located 50 km south of the previous drill holes in the north portion of the property. Mike Rosko of Montgomery Associates has recommended these locations, as “there is evidence of historic and currently active hydrothermal activity in the south and that hydrothermal activity can be a source of lithium such as in the Lithium Triangle in Chile and Argentina”.

ON MINING

  • Starcore International Mines Ltd. filed the results for the Q3 ended on 31 January, 2020. At the company’s San Martin mine in Queretaro, 58.3 K tonnes were milled @ 1.84 gpt Au, 30.1 gpt Ag, recovering 90.1% Au, 50.9% Ag, to produce 3.1 K Oz Au, 29.6 K Oz Ag during the quarter; on the year 301.9 K tonnes were milled @ 1.63 gpt Au, 39.6 gpt Ag, recovering 86.2% Au, 58.4% Ag, to produce 13.7 K Oz Au, 224.5 K Oz Ag (16.4 K Oz AuEq), at cash cost $1,061 per Oz AuEq.
  • Mexus Gold US. continues gold production at its Santa Elena mine in Sonora (Not to mistake for First Majestic’s Santa Elena mine, also in Sonora).
  • Avino Silver & Gold Mines Ltd. reported that there is not been impact on day to day operations at the Avino mine in Durango. The company restricted entrance to external visitors and no-one at the mine-site has tested positive for the COVID-19. Two medical doctors are monitoring and educating the labour force and employees daily.
  • Torex Gold Resources Inc. announced that to date the company had no known or suspected cases of COVID-19 infection at the El Limón – Guajes operations in Guerrero. “At the operation, we have stopped international travelers from coming to site. Social distancing efforts at site are being implemented, which includes isolating delivery drivers. Aggressive cleaning of communal areas has also been ramped up. Education initiatives on infection prevention have been extended to the surrounding communities”.
  • McEwen Mining Inc. reported fourth quarter and full year 2019 results, including figures from its Mexican operations. Production from residual leaching at El Gallo, in Sinaloa, was 2,490 Oz Au Eq for the quarter and 16,333 Oz Au for the year.
  • Impact Silver Corp. informed operations continue as the Coronavirus situation is monitored daily. “In conjunction with local authorities we are actively disseminating information on COVID-19 precautionary measures to our employees and their families. We will continue to monitor their health and for signs of early symptoms of the virus on a regular basis to ensure safety of our staff” (Zacualpan, Estado de Mexico).
  • Great Panther Mining Ltd. announced that it has been closely monitoring the latest developments of the novel Coronavirus COVID-19. “All operations and offices have implemented travel restrictions, supervision, monitoring and response plans to reduce the risk of COVID-19 exposure and outbreak” (Topia, Durango).
  • Excellon Resources Inc. informed the company is in regular contact with local health authorities at its Platosa (Durango) and Miguel Auza (Zacatecas) operations, and continue to monitor global trends on the Coronavirus pandemia. Among other measures “we have restricted site access to essential personnel and essential suppliers. We are conducting health screening at the gate and have provided our security and health personnel with additional protective measures. We have increased the frequency of workplace cleaning and disinfection, including transport vehicles, and have also increased the number of hand sanitizer stations across the work sites. We have implemented social distancing by doubling the number of buses transporting employees to site, significantly modifying food provision services and increasing office space for administration staff, as well as preparing to adjust our existing work-from-home policies as conditions dictate”.
  • Argonaut Gold. Has implemented protocols to minimize the risks of COVID-19 virus, both to employees and business. “At each site, Argonaut is following government health protocols, has implemented additional protocols and is closely monitoring the situation with local health authorities” (La Colorada, Sonora).
  • GoGold Resources Inc. informed that “The constantly changing COVID-19 situation is unprecedented and for many is a time filled with uncertainty. We’d like to ensure our shareholders that operations at Parral and Los Ricos continue as normal as we monitor the situation” (Parral, Chihuahua; Los Ricos, Jalisco).
  • Endeavour Silver Corp. has implemented plans to minimize the risks of the COVID-19 virus both to the employees and to the business. “At each site, Endeavour is following government health protocols and is closely monitoring the situation with local health authorities. The Company has posted health advisories to educate employees about the COVID-19 symptoms, best practices to avoid catching the virus, and procedures to follow if symptoms are experienced” (El Compas, Zacatecas).
  • Fortuna Silver Mines Ltd. has been monitoring the effects of the spread of the Coronavirus, particularly in the jurisdictions that host its mining operations. The company “has placed its Health Safety Security and Environmental Committee in permanent session and is continually assessing the related health and safety risks to the Company’s personnel and contractors at its operations and offices. Preventative measures implemented at our offices and mines include: restrictions on travel, enhanced communication on prevention of contagion and viral effects, increased hygiene initiatives, monitoring personnel and visitors at our sites for symptoms of COVID-19, identification of personnel in high risk categories, reducing mine site personnel to a minimum level essential for continued operations and limiting visitors to those whose visits are considered critical” (San José, Oaxaca).
  • Equinox Gold Corp. “is closely monitoring the COVID-19 pandemic and has taken precautionary measures at its mine sites and offices to help protect the safety of the Company’s workforce and local communities” (Los Filos, Guerrero).

ON FINANCING

  • Silver Spruce Resources Inc. has entered into debt settlements with several creditors and one officer and director to settle $350 K. Under the terms of the debt settlement agreements 7 M shares were issued (Pino de Plata, Chihuahua).
  • First Majestic Silver Corp. board has approved the extension of its share repurchase program over the next year, period on which the company aims to re-purchase up to 10 M shares (San Dimas, Durango; Santa Elena, Sonora).
  • SilverCrest Metals Inc. received notice from National Bank Financial Inc. purporting to terminate its obligations pursuant to an agreement whereby NBF had asked for and agreed to purchase on a “bought deal” basis 9.1 M common shares at price of $8.25 per common share, based on the “disaster out” clause of the agreement. “SilverCrest intends to pursue its legal remedies against NBF for breach of NBF’s obligations under the terms of the Agreement” (Las Chispas, Sonora).
  • Almaden Minerals Ltd. amended its private placement in order to reflect current market conditions. The purchase price for units has been reduced from $0.41 to $0.37 and the exercise price for warrants from $0.65 to $0.50, while the offering size has been increased from 4.9 M to 5.4 M units (Ixtaca, Puebla).

ON RESOURCES AND DEVELOPMENT

  • Prime Mining Corp. informed recent work at its Guadalupe de Los Reyes project in Sinaloa hints to the potential of linking resources. Recent new trenches and road cuts sampling indicate mineralization linkage between the Zapote North and Zapote South orebodies. “Independent engineers are currently assessing and calculating a new resource model, which is now expected to be updated by the end of Q1 2020”. The historic resource is 530 K Oz Au, 10 M Oz Ag, established for Vista Gold in 2013.

ON DEALS AND CORPORATE ISSUES

  • Century Metals Inc. provided an update on the acquisition of all the shares of Reyna Silver Corp. (which owns the Guigui project in Chihuahua). Century is to consolidate to its shares to 5.35 M, both companies are to undertake private placements and Century will issue shares to Reyna Silver’s shareholders and warrants to the holders of warrants, and Century will issue shares to Mag Silver Corp., which is to hold 19.9% of the consolidated shares. Century and Reyna are raising up to $6.8 M in conjunction with the acquisition through concurrent financings. To date, Reyna has raised $5.06 M and Century $1.49 M. The Acquisition is a reverse takeover, and the definitive agreement is expected to be settled before the end of March 2020.
  • Riverside Resources Inc. provided an update on its operations. Currently the company has more than C$2 M in cash, no debt, 63 M shares outstanding and posted to receive $1 M from BHP in May, as part of a generative copper exploration strategic funding agreement. The company also holds marketable securities worth over C$1 M and has retained NSR’s on previously partnered projects. By the end of the month Riverside will have a vote to spin-out the Peñoles project in Durango.
  • Excellon Resources Inc. and Otis Gold Corp., announced that they have filed a joint circular in connection with the acquisition by Excellon of all the shares of Otis, pursuant to a plan of arrangement under the Business Corporations Act of British Columbia (Platosa, Durango).
  • Hecla Mining Co. provided a summary of the activities undertaken to protect its business, employees and local communities from COVID-19. Among the actions taken, contracts have been secured for $16 per Oz Ag for the second quarter, and $1,450 and $1,650 per Oz Au for the second and third quarter respectively. The company has implemented and followed recommended health and hygiene protocols, restricted mine site staff to essential personnel and contractors, stockpiled critical mining supplies (up to six months’ worth in some cases) to protect against possible future supply disruptions (San Sebastian, Durango).

ON SOCIAL RESPONSIBILITY

  • Minera Media Luna has a community campaign to prevent the spread of the COVID-19 virus in the region of the Limon-Guajes mine in Guerrero. The campaign includes an informative preventive health circle inward and outward of the mining complex, into the communities of Acalmantlila, Nuevo Balsas, Real de Limón, La Fundición and Atzcala, among others.

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

On the image below: potassic feldspar alteration in a meta granitoid in Oaxaca, picture by Jorge Cirett.

IMG_0770b

GOLD RESOURCE CORPORATION ANNOUNCES CHANGE TO VIRTUAL WEBCAST FOR 2020 ANNUAL MEETING OF SHAREHOLDERS

GRC-2020-03-16-1

COLORADO SPRINGS – March 16, 2020 – Gold Resource Corporation (NYSE American: GORO) (the “Company”) announced today a change of its 2020 annual meeting of shareholders to a virtual webcast. The annual shareholder meeting will be still be held at 8:00 a.m. Mountain Time on Thursday, May 21, 2020, but in virtual meeting format only, via live webcast. Gold Resource Corporation is a gold and silver producer, developer and explorer with operations in Oaxaca, Mexico and Nevada, USA. The Company has returned $113 million back to its shareholders in consecutive monthly dividends since July 2010 and offers its shareholders the option to convert their cash dividends into physical gold and silver and take delivery

Great Panther Reschedules 2019 Fiscal Year Earnings Release and Conference Call

Great Panther Mining Limited_ News

VANCOUVERMarch 16, 2020 /CNW/ – GREAT PANTHER MINING LIMITED (NYSE American: GPL; TSX: GPR) (“Great Panther”, the “Company”) announces that it will reschedule its 2019 fiscal year earnings release, previously set for today after market close.  The revised date relates to finalization of certain financial statement considerations and is not anticipated to extend beyond ten business days. The Company will make a further announcement in a subsequent press release to schedule the date and time of the earnings release and conference call and webcast.

The Mining and Exploration News in Mexico: Highlights on the Second Week of March, 2020.

phreatic breccia

By Miguel A Heredia

During the eleventh week of the year (March 9th to March 15th, 2020), at least 21 press releases were announced by companies working in Mexico, with four commenting on Mexican issues, three announcing financial rounds, three informing on exploration results, three communicating production and financial results, three disclosing deals and corporate issues, three discussing issues on social responsibility, and two reporting on resources and developments.  ON MEXICO ISSUES, A local Deputy of Durango State celebrated the investment of USD $100M in the mining sector. Michoacán State breaks the mining slowdown cycle, and Fe extraction grows 8% and climbs to second place. A series of Mexican mining projects have changed ownership in recent weeks as Au and Ag prices rise. In the last five years, the female workforce in the mining sector has grown by an average of 14-15%, according to Karen Flores, General Director of the Mining Chamber of Mexico (Camimex). ON EXPLORATION, In Sinaloa, Vizsla reported drilling results from its Panuco project. In Zacatecas, Alien announced its program development for its Mexican projects. In Jalisco, GoGold released drilling results from 11 holes collared at its Los Ricos project. ON MINING, Americas Gold and Silver reported full year 2019 production and financial results (Cosala mine, Sinaloa). Santacruz suspended milling operations at its Veta Grande mine in Zacatecas. Fortuna Silver reported full year 2019 production and financial results from its San Jose mine in Oaxaca. ON FINANCING, Almaden announced a non-brokered private placement for gross proceeds of up to $2M (Ixtaca project, Puebla). SilverCrest announced a bought deal financing for gross proceeds of CAD $75M (Las Chispas project, Sonora). Mexus sold some Au produced at its Santa Elena mine in Sonora.  ON RESOURCES AND DEVELOPMENT, Great Panther updated mineral resource estimate at its Guanajuato Mine Complex in Guanajuato and provided an update on its Topia mine operation in Durango. SilverCrest reported infill drilling results from its Las Chispas project in Sonora. ON DEALS AND CORPORATE ISSUES, Equinox and Leagold completed merger to create premier Americas gold producer (Los Filos, Guerrero). Pan American filed its 2019 audited annual financial statement and annual information form (La Colorada mine, Zacatecas). Premier appointed a new member to its board of Directors (Mercedes mine, Sonora). ON SOCIAL RESPONSIBILITY, Almaden opened a local water reservoir in the community of Zacatepec, nearby its Ixtaca project in Puebla.  Argonaut gave scholarship number 3,000 to a student of La Colorada, Sonora. Minera San Xavier (New Gold Inc.), improves the public lighting system in Cerro de San Pedro, San Luis Potosi.

ON MEXICO ISSUES

  • A local Deputy of Durango State, celebrated the investment of USD $100M in the mining sector. It means greater economic development and especially the generation of a large number of well-paid jobs. For this reason, the Deputy said, it is necessary for the federal government to develop a state mining policy, as it is currently done in Durango that allows recovering the international competitiveness that characterized Mexico during the first decade of this millennium.
  • Michoacan State, breaks the mining slowdown cycle, and Fe extraction grows 8% and climbs to second place. According to the Economic Information Bank, the entity totaled 2.6M tonnes in 2019, which meant an increase of 8% with respect to the 2.4M tonnes reported during 2018.
  • A series of Mexican mining projects, have changed ownership in recent weeks as Au and Ag prices rise. For instance, Magna Gold acquired the San Francisco mine in Sonora from Alio Gold and is evaluating partnership opportunities to advance its suspended Ana Paula project in Guerrero; GR Silver Mining acquired Plomosas in Sinaloa from First Majestic; GoGold recently acquired 5 concessions around its Los Ricos project in Jalisco; and Fresnillo plc exercised an option to acquire the Naranjillo property in Guanajuato from Plata Latina. These latest agreements show that Mexico continues to generate a decent level of interest in mergers and acquisitions.
  • Karen Flores, General Director of the Mining Chamber of Mexico (Camimex), announced that In the last five years, the female workforce in the mining sector has grown by an average of 14-15%. Currently, 60 thousand women work in this industry in the country, which represents 16% of the total of its workers. In 2019, 3,153 new places were generated for them.

ON EXPLORATION

  • Vizsla Resources Corp., reported drilling results from its Panuco project in Sinaloa. Significant interception were encountered in hole AMS-20-06 with 1.25 g/t Au and 264 g/t Ag (364 g/t AgEq) over 3.55m, including 2.54 g/t Au and 474 g/t Ag (677 g/t AgEq) over a width of 1.3m; and hole AMS-20-04 with 2.45 g/t Au, 45 g/t Ag, 1.2% Pb, and 3.0% Zn (404 g/t AgEq) over 2.6m. These drilling results are the first set from an aggressive program of 14,500m that will continue throughout 2020.
  • Alien Metals Limited, announced its program development for its Mexican projects. The company has planned a detail exploration drilling program and has submitted applications for drill permits at its Los Campos and San Celso projects in Zacatecas. At its Donovan 2 Cu-Au VMS target in Zacatecas, it also is planning a ground magnetic survey to generate follow-up work and drill targets.
  • GoGold Resources Inc., released drilling results from eleven holes collared at its Los Ricos project in Jalisco: two at San Juan and nine at the Main area. Significant drill intersections were encountered in hole LRGG-20-106 (San Juan Area) with 1.35 g/t Au and 118 g/t Ag (2.92 g/t AuEq or 219 g/t AgEq) over a width of 21m, including 2.83 g/t Au and 217 g/t Ag and (5.73 g/t Au or 430 g/t AgEq) over a width of 9.5m; hole LRGG-20-102 (Main Area) with 1.05 g/t Au and 156 g/t Ag (3.13 g/t AuEq or 235 g/t AgEq) over a width of 10.7m; and hole LRGG-20-101 (San Juan Area) with 0.54 g/t Au and 116 g/t Ag (2.08 g/t AuEq or 156 g/t AgEq) over a width of 33.8m, including 2.0 g/t Au and 467 g/t Ag (8.22 g/t AuEq or 617 g/t AgEq) over a width of 5m.

ON MINING

  • Americas Gold and Silver Corporation, reported full year 2019 production and financial results. Consolidated results indicate a total ore processed of 701.8K tonnes of 70 g/t Ag, 2.1% Pb, 3.4% Zn to produce 1.16M Oz Ag, 26.2M Lb Pb, and 43.3M Lb Zn, with a cash cost of $4.61 per Oz Ag and AISC of $12.71 per Oz Ag. The company reported revenues of $58.4M and a net loss of $34.2M. The Cosala mine in Sinaloa successfully executed its production plans for the year 2019, increasing mill tonnage to over 1,750 tonnes per day, and increasing production of precious and by-product metals.
  • Santacruz Silver Mining Ltd., suspended milling operations at its Veta Grande mine in Zacatecas for approximately six months to facilitate plant and new tailings storage facility upgrades.
  • Fortuna Silver Mines Inc., reported Q4 and full year 2019 production and financial results from its San Jose mine in Oaxaca. During the period Q4, 2019, it milled 273,066 tonnes of 249 g/t Ag and 1.5 g/t Au, recovering 91% for both metals to produce 2M Oz Ag and 12K Oz Au, at cash cost of $6.8 per Oz AgEq and AISC of $10.5 per Oz AgEq. For the full 2019 year, the company milled 1,068,722 tonnes of 252 g/t Ag and 1.57 g/t Au, recovering 91% for both metals, to produce 7.9M Oz Ag and 48.9K Oz Au, at cash cost of $6.70 per Oz AgEq and AISC of $9.8 per Oz AgEq.

ON FINANCING

  • Almaden Minerals Ltd., announced a proposed non-brokered private placement to raise gross proceeds of up to $2M. Net proceeds will be used for permitting activities related to its Ixtaca project in Puebla, and for general corporate purposes. Closing of the offering is anticipated to be on or about March 26, 2020.
  • SilverCrest Metals Inc., announced a bought deal financing for gross proceeds of CAD $75M. Net proceeds will be used to continue the exploration and development of its Las Chispas project in Sonora and for general working capital and administrative purposes.
  • Mexus Gold US, sold 16.5 out of 125 Oz Au produced at its Santa Elena mine in Sonora, at a price of USD $1,600 per Oz. Additional sales will be occurring shortly.

ON RESOURCES AND DEVELOPMENT

  • Great Panther Mining Limited, updated mineral resource estimate at its Guanajuato Mine Complex in Guanajuato. At Guanajuato mine, measured + indicated resources are 343,736 tonnes of 204 g/t Ag and 1.69 g/t Au to contain 2.25M Oz Ag and 8.7K Oz Au (3.75M Oz AgEq at a grade of 339 g/t AgEq). Inferred resources are 208,608 tonnes of 168 g/t Ag and 2.32 g/t Au to contain 1.13M Oz Ag and 15.6K Oz Au (2.37M Oz AgEq at a grade of 354 g(t AgEq). At San Ignacio mine, measured + indicated resources are 386,417 tonnes of 159 g/t A and 3.03 g/t Au to contain 1.97M Oz Ag and 37.6K Oz Au (4.98M Oz AgEq at a grade of 401 g/t AgEq). Inferred resources are 501,870 tonnes of 149 g/t Ag and 2.69 g/t Au to contain 2.4M Oz Ag and 43.4K Oz Au (5.88M Oz AgEq at a grade of 364 g/t AgEq). In addition, the company reported that it has temporarily ceased tailing deposition at its Topia mine in Durango. Great Panther is in the process of permitting a Phase III of a tailings storage facility (TSF) site. Meanwhile, it is reviewing alternatives to store tailings (permanent or transitionary) until phase III TSF is permitted. The company expects it is obtained in the within the next 3 or 6 months.
  • SilverCrest Metals Inc., reported infill drilling results from its Las Chispas project in Sonora. Highlights include hole UBV19-30 with 81.6 g/t Au and 6,619 g/t Ag (12,740 g/t AgEq) over a true width of 2.1m; hole BV20-22 with 101.45 g/t Au and 5,413 g/t Ag (13,022 g/t AgEq) over a true width of 1.1m; and hole BV20-18 with 45.8 g/t Au and 2,396 g/t Ag (5,831 g/t AgEq) over a true width of 1.6m. The drilling results have nearly doubled the size of the high-grade footprint for the Babi Vista Vein in the Babicanora Area.

ON DEALS AND CORPORATE ISSUES

  • Equinox Gold Corp., and Leagold Mining Corporation, completed merger to become in one of the world´s top gold producing companies. The concurrent USD $670M debt and equity financings associated with the merger have also been completed (Los Filos mine, Guerrero).
  • Pan American Silver Corp., filed its 2019 audited annual financial statement and annual information form (La Colorada mine, Zacatecas).
  • Premier Gold Mines Limited, appointed a new member to its board of Directors (Mercedes mine, Sonora).

ON SOCIAL RESPONSIBILITY

  • Almaden Minerals Ltd., along with the Federal Government Water Authority (CONAGUA), opened a local water reservoir in the community of Zacatepec, nearby its Ixtaca project in Puebla. This water reservoir will be used for irrigation to boost the current harvests of the community.
  • Argonaut Gold Inc., gave the scholarship number 3,000 to a student of la Colorada, Sonora. In this community, the company has maintained an academic scholarship program since 2011. The General Manager of the La Colorada mine assured that the company’s commitment is fulfilled in coherence with the vision of social responsibility where the education of children and young people is a priority.
  • Minera San Xavier (New Gold Inc.), has invested heavily in the infrastructure of the municipality of Cerro de San Pedro, as part of the social actions contemplated in its Comprehensive, Inclusive and Participatory Mine Closure Plan. The company is improving the public lighting system in Cerro de San Pedro, San Luis Potosi, with solar luminaries, which have a positive impact on public safety and tourist activities. These solar luminaries count with great potential for energy savings, reducing electricity consumption and maintenance costs, without compromising the quality of lighting services.

 

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 phreatic breccia in an epithermal hot spring prospect in Guanajuato, Mexico.  Photo by Miguel A Heredia.

The Mining and Exploration News in Mexico: Highlights on the First Week of March, 2020

IMG_4731

By Jorge Cirett

During the 10th week of the year (March 2nd to March 8th, 2020), at least 25 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, several companies are interested exploring for lithium in Zacatecas-San Luis Potosí. Grupo Mexico plans to invest 78% more in 2020. Several mining companies are to invest more than $200 M in exploration in Mexico. The year 2019 was not good for the mining industry in the country, with an overall decrease in production. Durango’s governor announced mining investments for $100 M. The Peñasquito mine is expected to produce 1.6 M Oz AuEq per year for the next five years. The Industria Nacional de Autopartes (INA) is promoting the installation of a lithium battery plant. The Future of the Mexican Mining Industry seminar was held during the PDAC convention in Toronto, Canada.  Peñoles is to switch to LP gas its diesel truck fleet at one of its mines in Sonora (Milpillas?). ON EXPLORATION, in Durango, Chesapeake Gold optioned the Duraznito project, near the San Dimas mine. In Veracruz, Azucar Minerals released more drill results from its El Cobre project.  ON MINING, US Antimony reported the successful startup of the Los Juarez production facilities in Queretaro and Guanajuato. Mexus Gold announced small scale heap leach gold production at its Santa Elena mine in Sonora. Bacanora Lithium presented financial results for the last six months of 2019. Gold Resource presented production figures for 2019. Fresnillo PLC and Premier Gold Mines released financial results for 2019. ON FINANCING, One World Lithium announced the amendment of the terms on a number of  purchase warrants previously issued by the company. Consolidated Zinc entered into unsecured loan facilities with CZL major shareholders. Premier Gold closed its public offering, for gross proceeds of $38 M. ON RESOURCES AND DEVELOPMENT, Mag Silver released results from last year’s 28-hole program with over 33,000 m of drilling, including some exciting intercepts. Gold Resource Corp. updated annual reserve estimates for the Oaxaca Mining Unit. Aura Minerals provided mineral reserve and resource estimates to the end of 2019 for the Aranzazu mine in Zacatecas. SilverCrest released metallurgical test results for its Las Chispas project in Sonora.  ON DEALS AND CORPORATE ISSUES, Mithril Resources is acquiring the company that controls the Copalquin project in Durango. Oroco Resource closed the acquisition of Altamura Copper, furthering its interest on the Santo Tomás project in Sinaloa. Magna Gold is acquiring Alio Gold’s San Francisco mine in Sonora. Sable Resources appointed Ruben Padilla as CEO. Equinox Gold and Leagold Mining received approval for its merger. GR Silver Mining and First Majestic signed a binding agreement on the sale to GR of the Plomosas property in Sinaloa. Prime mining signed a long-term surface agreement on its Guadalupe de Los Reyes project in Sinaloa. Cheaspeake gold optioned the El Duraznito project in Durango. Fortuna Silver is involved in legal proceeding regarding a royalty on one of its mining concessions. ON SOCIAL RESPONSIBILITY. Peñasquito  received two awards by Infonavit for its excellent compliance on payments.

ON MEXICO ISSUES

  • Claudia Pavlovich, Sonora’s governor, praised the work women realize in the State, while on a trip visiting mining communities, like Turicachi, Nacozari de García and Cumpas, where she realized various activities.
  • Gustavo Puentes, Secretary of Economic Development, announced several companies are interested in investing in lithium exploration in the border between San Luis Potosi and Zacatecas.
  • Camimex (Cámara Minera de México) supports women collaborators that unite on the movement #UnDíaSinNosotras (One day without us) that is trying to eradicate genre violence.
  • The inauguration of Mexican Stand on the Prospectors and Developers of Canada Convention (PDAC) in Toronto counted with the participation of Graeme Clark, Canada’s ambassador in Mexico, Juan José Gómez Camacho, Mexico’s ambassador in Canada, Francisco Quiroga, subsecretary of Mining, José rosas Aispuro, Durngo’s governor and Salvador García, president of the Asociación de Ingenieros de Minas, Metalurgistas y Geólogos de México (AIMMGM). The Mexico stand was possible due to the support of the AIMMGM, Peñoles, Minera Media Luna, Newmont, Alamos Gold, Endeaavour Silver, Asociación de Mineros de Sonora, Construplan, Detector Exploraciones, SSR Mining Pitarrilla, Santacruz Silver Mining, Starcore, International Mines, MacClean, Diesel Cargo, Accendo Banco, ROD General Contractor and Ecodrill, as the Mexican government no longer supports international promotion.
  • Grupo Mexico plans to invest 78% more in 2020. On mining the budget is US$1,217 M to produce 1.12 M tonnes Cu, further US$367 M to invest in transport and US$412 M in the infrastructure division.
  • Mining industry companies are to invest more than US$200 M in exploration in Mexico during 2020. Torex Gold plans to invest US$13 M in the Media Luna project; Fresnillo will invest over US$135 M in exploration in Chile, Peru and Mexico; First Majestic Silver will invest US$28 M in San Dimas, Durango and Santa Elena, Sonora; Pan American Silver is to invest more than US$37 M at Dolores in Chihuahua and La Colorada in Zacatecas.
  • Mining did not have a good year in Mexico in 2019. Mining is ongoing in 25 States, produces 8.1% of the industrial GNP and had a 5.1% contraction as result of the policies of the actual Federal Government. Since December of 2018 no new mineral concession titles have been granted, and the environmental regulator, SEMARNAT has delivered just one Environmental Impact Report (Manifestación de Impacto Ambiental, or MIA). In Puebla, a local court maintains a suspension of work on El Gorrión mine (Ixtaca) based on a legal complaint by a communal group (ejido) on a mineral concession the company no longer has. The Cosalá mine in Sinaloa is paralyzed by a conflict between unions masterminded by Morena’s senator Napoleon Gómez Urrutia, reminiscent of the conflict suffered by Torex Gold a few months ago under the same terms. The projected investments for US$5,343 M were not achieved, with the projected real figure likely to be around 60%, and exploration at 36% of the expected. Coming interactions of the industry with the Environmental regulator the sub secretary of mining, Francisco Quiroga and Alfonso Romo are to try to better the condition of the industry.
  • The governor of Durango, José Rosas Aispuro announced at the PDAC convention in Toronto, the investment of US$100 M in the mining sector during 2020 in the State.
  • The Peñasquito mine in Zacatecas is the biggest gold mine in Mexico, the second largest for silver and one of the biggest producers of zinc and lead. The mine is expected to produce 1.6 M Oz AuEq per year during the next five years. The company is striving to reduce costs and optimize the operation.
  • The Industria Nacional de Autopartes (INA) promotes the installation of a battery plant based on lithium, to take advantage of the natural resources and the industrial prowess of the country. Bacanora Lithium plans to invest US$420 M on the installation of a processing plant in Bacadehuachi, Sonora, in order to produce 17 K tonnes a year. About 85% of the lithium producers are in Asia, and USA produces 20% of the batteries. The nearness to the USA and sea ports are other advantages for project owned by Bacanora Lithium.
  • During December 2019 mining grew by 0.9% thanks to the push given by a raise of 19.1% in lead production. For the year, mining decreased 1.5%, while lead production grew 13.3%. Los Gatos, in Chihuahua; Minera Capela in Guerrero; San Martin and Peñasquito in Zacatecas and production by Fresnillo aided in the growth seen by the bluish gray metal. Production rates from other metals show increments and decrements to the following tenor During December: Gypsum +14.4%, zinc +8.8%, silver +7.8%, sulphur +5.2%, coke -25.8%, iron pellets -7.3%, coal -5.2%, gold -2.2%, copper -0-8%. For the year: Overall -1.5%, gold -10.2%, silver +1.1%, copper +4.8%, zinc +7.0%, lead +13.3%, iron pellets -0.5%, coke -16.0%, Sulphur -14.7%, fluorite -5.0%, coal -2.0%, gypsum -0.6%. The trend reflects years of decreasing investment in mining, although some new developments might increase the production on lead, zinc, silver and copper.
  • The Future of the Mexican Mining Industry seminar was held during the PDAC convention in Toronto, Canada. Four environmentally focused conferences opened the seminar in which a dialogue table was set with the Mining Sub Secretary Francisco Quiroga, several governors, union leaders, mining company executives, financial analysts and congressmen.
  • Lithium exploration projects in Mexico: There are more than 20 lithium exploration projects in the country, most within Sonora, Zacatecas, San Luis Potosí, Baja California and Coahuila. The most advanced is Bacanora Lithium’s Sonora project in Bacadehuachi, but other interesting properties are comprised by OrganiMax’s Salar La Salada in Zacatecas, and Salar Santa Clara and Salar Caliguey in San Luis Potosí; Litio Infinito’s project in Sonora, adjacent to the ground held by Bacanora Lithium and One World Lithium’s Salar del Diablo project in Baja California.
  • Industrias Peñoles intends to change the fuel used by its mining trucks fleet in a mine in Sonora. The change involves modifying the trucks to run on LP gas instead of diesel (Milpillas mine?).

ON EXPLORATION

  • Chesapeake Gold Corp. announced it has an option to acquire El Duraznito project in Durango, which is 18 Km East of First Majestic’s San Dimas mine. Mineralization is represented by quartz veins and quartz bearing breccias along 1,500 m of longitude and 300 m vertically. Those structures are parallel to the San Dimas veins, and appear to be also of epithermal low sulfidation character. A series of rock chip samples on sub-parallel quartz bearing breccias have returned 45 m @ 1.6 gpt Au, 16 gpt Ag; 30 m @ 3.9 gpt Au, 48 gpt Ag; 23 m @ 1.8 gpt Au, 58 gpt Ag; 15 m @ 3.1 gpt Au, 24 gpt Ag. Channel samples on quartz veins returned 10 m @ 4.8 gpt Au, 464 gpt Ag; 2.5 m @ 3.9 gpt Au, 756 gpt Ag; 2.5 m @ 9.7 gpt Au, 343 gpt Ag; 3.0 m @ 2.8 gpt Au, 113 gpt Ag.
  • Azucar Minerals Ltd. released results from its ongoing program at El Cobre project in Veracruz. Core length intercepts released include: 158.0 m @ 0.64 gpt Au, 0.26% Cu (including 19.6 m @ 0.83 gpt Au, 0.28% Cu); 71.7 m @ 0.16 gpt Au, 0.12% Cu (including 17.7 m @ 0.04 gpt Au, 0.38% Cu); 179.5 m @ 0.20 gpt Au, 0.22% Cu (including 39.95 m @ 0.15 gpt Au, 0.63% Cu and 17.55 m @ 0.48 gpt Au, 0.32% Cu); 112.2 m @ 0.36 gpt Au, 0.26% Cu; 442.2 m @ 0.44 gpt Au, 0.23% Cu (including 158.0 m @ 0.64 gpt Au, 0.26% Cu); 197.5 m @ 0.32 gpt Au, 0.24% Cu (including 16 .0 m @ 0.25 gpt Au, 0.81% Cu); 193.5 m @ 0.27 gpt Au, 0.14% Cu.

ON MINING

  • United States Antimony Corp. reported the successful start up of the Los Juarez Au and Ag production at Los Juarez, Queretaro. Detailed mapping delineated jasperoid silica-rich mineralized pipes over an E-W strike length of three kilometres, and a maximum width of one kilometre. Highlighted individual 1.0-1.5 m assays on drill holes range from trace to 25 gpt Au, 13 to 451 gpt Ag and 0.08 to 1.19% Sb. With a mean grade of 1.09 gpt Au, 102 gpt Ag, 0.65% Sb, and recovery rates of 90% Au, 85% Ag, 70% Sb. The ore is being treated by flotation mill, flotation mill and caustic leach and flotation mill tailings and cyanide leach.
  • Mexus Gold US. Announced it is now producing gold daily at its Santa Elena mine in Sonora (not to mistake with First Majestic’s Santa Elena mine, also in Sonora). Mexus plans to produce 5 to 7 Oz Au daily, and then increase to 10 Oz Au per day by the end of the month.
  • Bacanora Lithium Plc. provided financial results for the second half of 2019. During the period Bacanora concluded an investment and offtake agreement with Ganfeng Lithium Co, Ltd., raised UK$14.4 M and retained a US$150 M conditional senior debt facility. Engineering work has continued, while full development capital for construction is being pursued.
  • Gold Resource Corp. presented production figures for last year, including figures from its Oaxaca mining unit. During the year, 29,435 Oz Au, 1.72 M Oz Ag, 1,859 tonnes Cu, 2,286 tonnes Pb, 5,734 tonnes Zn were produced. Apporting to that production, 629 .9 K tonnes were milled @ 1.73 gpt Au, 82 gpt Ag, 0.38%Cu, 1.88% Pb, 4.64% Zn at the Arista mine, part of the Oaxaca Mining Unit.
  • Fresnillo Plc. announced financial results for the year 2019. Silver and gold production diminished 11.6% and 5.1% respectively during the period. Total silver production was 47.4 M Oz, with most of such production coming from Saucito (15.9 M Oz Ag), Fresnillo (24.8 M Oz Ag), San Julián DOB (7.4 M Oz Ag), Ciénega (5.3 M Oz Ag) and San Julián veins (4.2 M Oz Ag). A total of 848 K Oz Au were produced, mostly from Herradura (496 K Oz Au), Noche Buena (105 K Oz Au), Saucito (72 K Oz Au), San Julián veins (62 K Oz Au), Ciénega (62 K Oz Au), Fresnillo (46 K Oz Au). The company also produced 49 K tonnes of lead, from Saucito (19.7 K tonnes Pb), Fresnillo (19.5 K tonnes Pb), Ciénega (4.4 K tonnes Pb ), San Julián (5.4 K tonnes Pb), and 78.6 K tonnes of zinc from Fresnillo (26.3 K tonnes Zn), Saucito (25.6 K tonnes Zn), San Julián (19 K tonnes Zn), Ciénega (7.6 K tonnes Zn). Cash cost per silver ounce varied between ($0.2) and $7 per Oz Ag on the different mining units, and gold between $818.6 and $847.8 per Oz Au.
  • Premier Gold Mines Ltd. released operating results for the quarter ending on December of 2019 and full year 2019 results, including figures from its Mexican operations. At the Mercedes mine in Sonora, 667.7 K tonnes were mined @ 2.91 gpt Au, 26 gpt Ag, recovering 95.8% Au, 34.0% Ag, to produce 59,901 Oz Au, 191.3 K Oz Ag. Co-product cash cost was $1,034 per Oz, and co-product AISC $1,263 per Oz Au. For the full year total capital expenditures were $18.8 M, focusing on underground mine infrastructure and development, as well as exploration and replacement of old mining equipment.

ON FINANCING

  • One World Lithium Inc. announced the amendment of the terms of 14.5 M outstanding common share purchase warrants, previously issued by the company (Salar del Diablo, Baja California).
  • Consolidated Zinc Ltd. entered into unsecured loan facilities with CZL major shareholders, the Copulos and Retzos Groups. The loan facilities are for A$400 K at an interest rate of 10% per annum, repayable by the end of June 2021 (Plomosas, Chihuahua).
  • Alamos Gold Inc. declared a quarterly dividend of US$0.015 per common share and introduced a dividend reinvestment and share purchase plan (Mulatos, Sonora).
  • Premier Gold Mines Ltd. closed its previously announced public offering for gross proceeds of $38 M, paying a 5% cash commission, with a reduced 2.5% cash commission on the Orion purchase (check note for further details) (Mercedes, Sonora).

ON RESOURCES AND DEVELOPMENT

  • Mag Silver Corp. announced results from the 2019 28-hole program with 33,864 m of drilling on the Juanicipio JV property in Zacatecas. The latest exploration results confirm and expand the wide, high-grade mineralization in the Valdecañas Deep zone and the Anticipada vein, as well as confirming and expanding the Venada vein, and the discovery of the NE trending Valentina and Venadas II veins through drilling and development. Exceptional true width intercepts comprise: 5.7 m @ 3,884 gpt Ag, 8.4 gpt Au, 6.5% Pb, 9.7% Zn, 0.3% Cu; 21.1 m @ 129 gpt Ag, 1.7 gpt Au, 3.5% Pb, 7.8% Zn, 0.2% Cu; 21.2 m @ 147 gpt Ag, 1.2 gpt Au, 3.9% Pb, 8.8% Zn, 0.3% Cu; 1.0 m @ 187 gpt Ag, 10.6 gpt Au, 1.3% Pb, 4.4% Zn; 2.5 M @ 918 gpt Ag, 1.8 gpt Au; 1.2 m @ 279 gpt Ag, 0.7 gpt Au; 0.7 m 1,216 gpt Ag, 3.6 gpt Au.

Gold Resource Corp. updated annual reserve estimates, including figures for its Mexican operations. At the Oaxaca Mining Unit that comprises the Arista and the Mirador mine, 2.83 M tonnes @ 1.97 gpt Au, 122 gpt Ag contain 179,300 Oz Au and 11.1 M Oz Ag in proven and probable reserves.Gold Resource Reserve table 20192Gold Resource Corp Resource table 20191

  • Aura Minerals Inc. provided mineral reserves and resources estimates to the end of 2019, including figures for its Aranzazu mine in Zacatecas.Aranzazu Reserves 20191
  • SilverCrest Metals Inc. released metallurgical test results with increased precious metals recoveries at Las Chispas property in Sonora. After nine months of intensive metallurgical tests involving all veins, the results show an increase on recoveries to 96.1% Au and 93.9% Ag. The design criteria envisages a single stage crushing, a sag mill single stage, gravity recovery of 40% to 50% precious metals, leach recovery for gravity concentrate on a 96 hours leach circuit and leach recovery for gravity tails on 96 hours leach circuit.

ON DEALS AND CORPORATE ISSUES

  • Mithril Resources Ltd. presented the 2019 end of year report. The most significant event is the ongoing acquisition of Sun Minerals Pty Ltd., which holds an option on the Copalquin project in Durango. The said acquisition is expected to be completed during the present quarter, with field work and drilling to be undertaken shortly after, as the statutory permits have already been obtained.
  • Oroco Resource Corp. closed the acquisition of the balance of the ownership of Altamura Copper Corp., giving the company 100% control of the Santo Tomás porphyry copper project in Sinaloa. The Company holds a 56.7% interest in 1,172.9 ha core concessions of the project, and may increase the interest up to an 81% interest with an investment of up to CAD$30 M. Oroco also holds a 77.5% interest in 7,807.9 ha of mineral concessions surrounding and adjacent to the core concessions.
  • Alio Gold Inc. entered into a definitive share purchase agreement to sell Molimentales del Noroeste S.A. de C.V., which owns 100% interest on the San Francisco mine in Sonora, with Magna Gold Corp.. Under the agreement Alio Gold will receive 9.74 M shares of Magna and an additional $5M in cash a year from the closing.
  • Sable Resources Ltd. announced the appointment of Dr Ruben Padilla to the position of company president & CEO (Margarita, Chihuahua).
  • Equinox Gold Corp. and Leagold Mining Corp. received the clearance decision “from the Comisión Federal de Competencia Económica (“COFECE”) with respect to the pending merger between Equinox Gold and Leagold. COFECE approval was the final government agency approval required before completing the merger, which is anticipated to occur in the second week of March” (Los Filos, Guerrero).
  • GR Silver Mining Ltd. announced the signing of the definitive binding share purchase agreement to acquire all the shares of Minera La Rastra S.A. de C.V. from First Majestic Silver Corp., and the ownership of the Plomosas Silver project in Sinaloa. The 8,515 ha project includes the old Plomosas mine, four targets at the drill/resource stage and 16 exploration targets and and exploration database with more than 500 historical drill holes.
  • Prime Mining Corp. signed a long-term surface access agreement on its Guadalupe de Los Reyes property in Sinaloa. The agreement signed with the Ejido Tasajera, envisions an initial 15-year term that can be extended for another 15 years. Under the terms of the agreement US$38.3 K were paid on signature, with a following payment of US$20K on year four and US$30 K on year five. If construction begins prior to the fifth year, the annual payment increases to US$30 K, and the payment under commercial production to US$200 K.
  • Chesapeake Gold Corp. announced it has an option to acquire El Duraznito project in Durango, which is 18 Km East of First Majestic’s San Dimas mine. Chesapeake is to pay US$228 K in instalments to two concession owners for three years to gain a 60% participation at El Duraznito, and US$500 K to obtain an additional 20%. At the start of commercial production Chesapeake is to make a final payment of US$550 K to the vendors.
  • Fortuna Silver Mines, Inc. Provided an update on the status of the legal proceedings related to a disputed royalty on one of its extracting mining concessions at the San Jose mine in Oaxaca. Fortuna initiated legal proceedings against the Dirección General de Minas (DGM) to contest the procedure taken by the DGM to cancel one of its mining concessions if the disputed royalty plus VAT is not paid before March 15, 2020. A permanent stay of execution (amparo) was granted, but the final ruling might take months and the company might be required to pay the disputed royalty.

ON SOCIAL RESPONSIBILITY

  • INFONAVIT executives from the Zacatecas Direction provided the Peñasquito mine with two awards for its excellent compliance with the payments of dues to the housing fund of its workers.

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

On the image below: Hydrothermal breccia sealed by silica in a thermal spring in Baja California, picture by Jorge Cirett.

IMG_4731