Gambusino Prospector

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

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By Jorge Cirett                                             

During the 15th week of the year (April 8th to April 14th, 2024), companies working in Mexico posted at least 29 press releases. Two companies released exploration results in their properties, while eight companies released production results for Q1 2024. Seven companies announced financing rounds for a total of C$18.4 M, one granted stock options, one more made a significant draw on its debt facility and one more is listing in the FSE. Three companies released drilling results from their advanced properties, one on new technical reports needed for its properties, and one more on the incoming drilling program. One company announced the appointment of a director. ON MEXICO ISSUES, the Northern Miner wrote that Mexico’s Supreme Court is likely to strike down the mining reforms by the current government. A federal court rejected the legal defense on the cancellation of the Sonora Lithium project concessions. ON EXPLORATION, Minaurum Gold reported metallurgical test results on Alamos; Silver Spruce obtained the drilling permit for the second round of drilling at Diamante. ON MINING, Fortuna Silver, Aura Minerals, Guanajuato Silver Company, Endeavour Silver, Orla Mining, GoGold Resources, Torex gold and Gatos Silver presented production results for Q1 2024. ON FINANCING, Kootenay Silver launched a “best efforts” public offering to raise up to C$5 M. Oroco Resource granted stock options. Silver Spruce announced a private placement to raise C$500 K. Silver Storm raised C$6.1 M. Endeavour Silver drew US$60 M from its US$120 M senior secured debt facility. Vortex Metals is to complete a non-brokered private placement to raise C$1.45 M. Prismo Metals listed its shares in the FSE. Tocvan Ventures is to raise C$2.25 M. Regency Silver upsized its non-brokered private placement to C$993.7 K. Silver Viper raised C$2.1 M on the closing of the first tranche of its financing round. ON RESOURCES AND DEVELOPMENT, Pan American Silver presented drilling results from La Colorada Skarn infill drilling in Zacatecas. Prime Mining released drilling results from Los Reyes, in Sinaloa. Defiance Silver is to prepare new technical reports for Tepal and San Acacio projects, in Jalisco and Zacatecas respectively. Goldgroup presented the first update on its operations and drilling results at Cerro Prieto, in Sonora. Centenario Gold is preparing to drill Eden, in Sinaloa. ON DEALS AND CORPORATE ISSUES, Vizsla Silver announced an appointment to the board. ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUES

  • Henry Lazenby on the Northern Miner wrote that Mexico’s Supreme Court could strike down the president’s mining reforms next week. Here is the link to read on the nightmarish situation in Mexico under the current government for the mining industry: https://www.northernminer.com/news/mexicos-supreme-court-could-strike-down-presidents-mining-reforms-next-week/1003866150/
  • The federal court rejected an amparo filed by Bacanora Lithium owned by the Chinese company Ganfeng Lithium to reverse the cancellation of its mining concessions in Sonora by the Ministry of Economy’s (SE) General Mining Directorate in September 2023.

ON EXPLORATION

  • Minaurum Gold Inc. reported preliminary metallurgical testing results from composite core samples taken at the Promontorio and Europa targets at its Alamos silver project in Sonora. “Six separate composites were prepared including 3 from core samples at the Europa vein zone and 3 from core samples at the Promontorio vein zone. For each vein zone, the 3 composites were comprised of 1/4 cores corresponding from sample intervals with silver assays in ranges 150-250 g/t silver (low grade), 250-450 g/t silver (medium grade), and >450 g/t silver (high grade)”. Reported Au recoveries ranged from 46% to 96.5%, averaging 77.4%; Ag recoveries ranged between 68.2% to 94.3%, averaging 85.4%; Pb recoveries ranged from 21.3% to 82.2%, averaging 63.7%; Cu recoveries ranged between 43.5% and 81.87%, averaging 61.2%. Samples were processed at the Tecnológico de Metalurgia in Hermosillo and the Servicio Geológico Mexicano (SGM) lab in Chihuahua.
  • Silver Spruce Resources Inc. along with partner Colibri Resource Corp. announced the approval of its Informe Preventivo by SEMARNAT (Environmental authority) for the second drill program at the Diamante project in Sonora. “Colibri will manage the planned 1,000 metre diamond drilling program from a select group of the permitted drill targets”.

ON MINING

  • Fortuna Silver Mines Inc. reported production for the first quarter of 2024, including figures from its Mexican operations. At San Jose, in Oaxaca, 181.1 K tonnes were milled at an average rate of 2,182 tpd, grading 147 gpt Ag, 0.90 gpt Au, recovering 88.73% Ag, 86.76% Au, to produce 4,533 Oz Au, 759.1 K Oz Ag during the period. “The San Jose Mine has less operational flexibility in 2024 compared to 2023 due to the reduced and more dispersed Mineral Reserves associated with the Trinidad deposit. Production areas contain lower head grades and a higher presence of ferrous oxides in the upper levels, which impacted recoveries by approximately 2 percent in the quarter. The operation is experiencing cost pressures, mainly driven by a continued appreciation of the Mexican peso. The Company conducts regular assessments and trade-offs between maintaining operations and a care and maintenance option”.
  • Aura Minerals Inc. announced preliminary production results from its mines, including figures from Aranzazu, in Zacatecas. During the period Aranzazu produced 25,001 Oz AuEq. “Production was 5% lower compared to Q4 2023 and 5% above Q1 2023 at constant metal prices, due to mine sequencing…”
  • Guanajuato Silver Company Ltd. announced selected financial information and consolidated production results for 2023. During the year the company mined 600.3 K tonnes, milling 593.8 K tonnes to produce 1.76 M Oz Ag, 16,967 Oz Au, 3.55 M Lb Pb, 3.87 M Lb Zn, at cash cost $18.22 per Oz AgEq and an AISC of $22.91. Guanajuato Silver produced 74% more Ag, 52% more Au, 164% more Pb and 100% more Zn than in 2022. At the end of the period the company had cash and cash equivalents of $1.96 M and negative working capital of $18.44 M (El Cubo, Valenciana Complex, San Ignacio in Guanajuato; Topia in Durango).
  • Endeavour Silver Corp. reported Q1 2024 production of 1.46 M Oz Ag, 10,133 Oz Au, or 2.3 M Oz AgEq. At Guanaceví, in Durango, 115 K tonnes were processed at a rate of 1,263 tpd, grading 402 gpt Ag, 1.25 gpt Au, recovering 89.9% Ag, 89.2% Au, to produce 1.33 M Oz Ag, 4,124 Oz Au. At Bolañitos, in Guanajuato, 106.8 K tonnes were processed at a rate of 1,174 tpd, grading 42 gpt Ag, 1.94 gpt Au, recovering 86.2% Ag, 90.2% Au, to produce 124.3 K Oz Ag, 6,010 Oz Au.
  • Orla Mining Ltd. provided an interim operational update for Q1 2024. During the period 1.94 M tonnes of ore were mined and 872.6 K tonnes of waste moved at its Camino Rojo Oxide mine in Zacatecas, with a strip ratio of 0.45, stacking 1.8 M tonnes at an average rate of 19,597 tpd, grading 0.82 gpt Au, to produce 33,223 Oz Au. At the end of the period Orla had a $118.1 M cash position, with a total debt of $88.4 M, resulting in a net cash position of $29.7 M.
  • GoGold Resources Inc. reported production for Q1 2024 of 138.7 K Oz Ag, 2,184 Oz Au, 93 tonnes Cu, 92 tonnes Zn, or 375.7 K Oz AgEq at its Parral tailings operations. “With the SART Zinc circuit commissioning completed, this marks the first quarter where Parral produced a saleable zinc product.”
  • Torex Gold Resources Inc. reported Q1 2024 gold production of 115,494 Oz at its El Limón Guajes surface and underground operations in Guerrero. Average gold recovery at the processing plant was 90.7%, the highest to date. Throughput averaged 13,118 tpd.
  • Gatos Silver Inc. announced production results for Q1 2024 at its Cerro Los Gatos mine in Chihuahua. During the period 292.1 K tonnes were processed at a rate of 3,210 tpd, grading 284 gpt Ag, 3.99% Zn, 1.77% Pb, 0.28 gpt Au, recovering 88.8% Ag, 61.4% Zn, 89.2% Pb, 52% Au, to produce 2.37 M Oz Ag, 15.8 M Lb Zn, 10.1 M Lb Pb, 1,390 Oz Au (or 3.7 M Oz AgEq) in lead and zinc concentrates.

ON FINANCING

  • Kootenay Silver Inc. entered into an agreement with Red Cloud Securities Inc. to act as lead agent and sole bookrunner in connection with a “best efforts” public offering for gross proceeds of up to C$5 M (Columba, Chihuahua).
  • Oroco Resource Corp. granted 6.23 M stock options to 33 directors, officers, employees and consultants at an exercise price of $0.75 per share (Santo Tomás, Sinaloa).
  • Silver Spruce Resources Inc. announced a private placement to gather gross proceeds of up to C$500 K (Pino de Plata, Chihuahua).
  • Silver Storm Mining Ltd. closed the second and final tranche of its oversubscribed non-brokered private placement offering for gross proceeds of C$4.63 M, including C$3 M investment from current significant shareholder Eric Sprott.  In aggregate the total gross proceeds in the two tranches added to C$6.1 M (La Parrila, Durango).
  • Endeavour Silver Corp. announced the first drawdown of $60 M of the $120 M senior secured debt facility for the development of the Terronera mine in Jalisco. The key terms of the contracts include forward sales amounting to 68,000 Oz Au that have been executed at $2,325 per Oz, representing 55% of planned gold production on the first three years of operations, no silver hedge requirements and forward purchases of US$45 M equivalent Mexican peso over the remaining construction period at $16.56 per US dollar.
  • Vortex Metals Inc. intends to complete a non-brokered private placement for total gross proceeds of C$1.45 M (Riqueza Marina, Oaxaca).
  • Prismo Metals Inc. announced the listing of its shares on the Frankfurt Stock Exchange (FSE). Prismo Metals shares are also cross listed on the Canadian Securities Exchange and on the OTCQB in the United States (Los Pavitos, Sonora).
  • Tocvan Ventures Corp. arranged a non-brokered private placement with a lead order from an institutional investor for C$1.5 M. The company will complete a concurrent private placement for up to C$750 K to other eligible investors for aggregate gross proceeds of C$2.25 M (Pilar, Sonora).
  • Regency Silver Corp. announced that it has closed a further C$215.2 K of a previously announced non-brokered private placement of $C800 K, upsizing it to a total of C$993.7 K (Dios Padre, Sonora).
  • Silver Viper Minerals Corp. announced the closing of the first tranche of its non-brokered private placement financing pursuant to the Listed Issuer Financing Exemption (LIFE) previously announced. Under the first tranche the company raised C$2.11 M in gross proceeds (La Virginia, Sonora).

ON RESOURCES AND DEVELOPMENT

  • Pan American Silver Corp. released results from the ongoing infill and geotechnical drill program at its La Colorada Skarn project, in Zacatecas. The results from eight drill holes (8,101 m) returned some of the highest-grade intercepts in the project. Highlighted core length intervals comprise 26.85 m @ 127 gpt Ag, 7.2% Pb, 11.1% Zn; 77.85 m @ 568 gpt Ag, 12.4% Pb, 9.6% Zn; 22.50 m @ 1,435 gpt Ag, 31.9% Pb, 20.5% Zn; 372.10 m @ 77 gpt Ag, 3.9% Pb, 5.8% Zn (including 83.85 m @ 172 gpt Ag, 8.5% Pb, 10.5% Zn); 60.00 m @ 80 gpt Ag, 4.0% Pb, 7.0% Zn (including 29.00 m @ 136 gpt Ag, 7.5% Pb, 12.8% Zn); 91.20 m @ 31 gpt Ag, 2.6% Pb, 5.0% Zn; 87.25 m @ 32 gpt Ag, 1.4% Pb, 3.9% Zn; 134.55 m @ 29 gpt Ag, 0.1% Pb, 6.6% Zn; 23.15 m @ 57 gpt Ag, 3.3% Pb, 5.6% Zn.
  • Prime Mining Corp. reported expansion drilling results from its Los Reyes project in Sinaloa. Highlighted true width intervals from 15 holes at the Tahonitas area comprise 7.7 m @ 5.83 gpt Au, 143 gpt Ag (including 1.8 m @ 24.31 gpt Au, 555 gpt Ag; 16.9 m @ 1.21 gpt Au, 60 gpt Ag (including 4.5 m @ 2.41 gpt Au, 122 gpt Ag); 0.8 m @ 7.66 gpt Au, 1,260 gpt Ag. These intercepts may support pit expansion to the southeast near surface, and show that the Tahonitas structure mineralization continues for 350 m along strike from the southeast pit crest and enhances the potential to continue discovering high-grade ore shoots within the southeast strike extension and potential high-margin underground feed. Five drill rigs are currently active, and the company is targeting 40,000 m of drilling in 2024.
  • Defiance Silver Corp. announced that the amendment needed on the Tepal project technical report cannot be done, as some of the sections requiring amendments were prepared by persons who are no longer qualified persons. Defiance will be working to prepare a new technical report to replace the current Tepal report. “As for its San Acacio project, work on the preparation of the new technical report is progressing well but has been delayed, notably, due to the site visit availability. The Company now expects to file this new technical report by the mid-May 2024” (Tepal, Jalisco; San Acacio, Zacatecas).
  • Goldgroup Mining Inc. updated on its operations at its Cerro Prieto open pit, heap leach mine in Sonora. Goldgroup commenced mining operations at Cerro Prieto in 2013 with a resource of 8.22 M tonnes @ 0.81 gpt Au, 17.2 gpt Ag, 0.21% Pb, 0.54% Zn, which were mined by mid 2023. Additional mineralization has been mined during subsequent exploration, but not yet included in a published resource calculation. To date Cerro Prieto has produced 117,033 Oz Au, and production continues at a rate of 1,000 to 1,200 Oz Au per month. Mining was focused over a strike length of 1.6 Km in several pits, on a near vertical shear zone up to 65 m wide. Highlighted core length intercepts in 2023 include 19.70 m @ 1.03 gpt Au; 5.5 m @ 0.75 gpt Au; 20.98 m @ 1.02 gpt Au; 13.20 m @ 2.05 gpt Au; 4.50 m @ 1.16 gpt Au; 1.55 m @ 4.78 gpt Au; 24.96 m @ 0.69 gpt Au; 7.70 m @ 1.35 gpt Au; 17.97 m @ 1.13 gpt Au; 11.80 m @ 0.61 gpt Au; 4.25 m @ 1.07 gpt Au; 7.78 m @ 0.98 gpt Au; 11.67 m @ 1.16 gpt Au; 13.70 m @ 1.15 gpt Au; 13.70 m @ 1.15 gpt Au; 13.20 m @ 1.20 gpt Au; 43.89 m @ 0.43 gpt Au; 9.05 m @ 0.093 gpt Au. The company recently brought back into full service its 2,500 tpd crushing circuit, with an improvement in recoveries to 60% expected. Funding is being sought for a second full crushing circuit to double its current gold production.
  • Centenario Gold Corp. announced the next phase of exploration on the Eden property in Sinaloa. The geological team lead by Alain Charest and Hermilo Mendoza outlined several new targets to drill-test across the Eden property, including the northern extension, the upper and deeper portions of the Buenavista epithermal vein system and other sub-parallel mineralized structures, especially the La Proveedora prospect 1.5 Km east of Buenavista. “The upper 100 meter portion of the Buenavista structure extends directly down dip from where the high grade Au and Ag surface sample as high as 239.9 g/t Au and 1390 g/t Ag were obtained”. Quartz textures and alteration minerals at 250 m depth are interpreted as part of the upper level of the epithermal systema, enhancing the probability of further mineralized zones at depth.

ON DEALS AND CORPORATE ISSUES

  • Vizsla Silver Corp. announced the appointment of Ms. Suki Gill as an independent director of the company effective immediately (Panuco, Sinaloa).  

ON SOCIAL RESPONSIBILITY

  • No Relevant News.

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

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

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By Jorge Cirett                                             

During the 13th week of the year (March 25th to March 31st, 2024), companies working in Mexico posted at least 21 press releases. Five companies released results for the last quarter/full-year 2023. Two companies announced financing rounds for a total of C$9.8 M, while one more filed a short form base shelf prospectus to raise up to C$40 M. Two companies released updated reserve and resource estimates for its operations. Three companies announced appointments to their boards, one is informing on a royalty spinout, one company announced the agreement to acquire another company with two operating mines in Mexico and one more announced the acquisition of a significant property in Sinaloa. A company with three precious metal mines in Mexico is commissioning a mint in Nevada. ON MEXICO ISSUES, no relevant news. ON EXPLORATION, no relevant news. ON MINING, Prime Mining, Alamos Gold, Discovery Silver, Fortuna Silver, Gold Royalty Corp and Americas Gold and Silver presented results for Q4 and full year 2023. ON FINANCING, Americas Gold and Silver raised C$7.8 M, and Capitan Silver increased its offering to C$2 M. Kootenay Silver filed a short form base shelf prospectus to make offering for up to C$40 M in 25 months. ON RESOURCES AND DEVELOPMENT, Mag Silver and Torex Gold released new reserve and resource estimates for Juanicipio (in Zacatecas) and the Morelos Complex (in Guerrero) respectively. ON DEALS AND CORPORATE ISSUES, Vizsla Silver is arranging the distribution of Vizsla Silver Royalties shares to its shareholders. Orex Minerals, GoGold Resources and Fresnillo plc announced resignations and appointments to their boards. Alamos Gold is acquiring Argonaut Gold. Vizsla Silver is acquiring the large La Garra-San Dimas project in Sinaloa. First Majestic Silver commissioned a mint in Nevada. ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUES

  • No Relevant News.

ON EXPLORATION

  • No Relevant News.

ON MINING

  • Prime Mining Corp. reported its operating and financial results for 2023. A federal judge has granted its applications for Federal protection (Amparos) to conduct its activities under the previous (1994) mining law. By the end of 2023 the company held $33.8 M in cash. Prime is to drill 40,000 m in 2024, focusing in resource development and discovery potential. Five drills are currently active at the site (Los Reyes, Sinaloa).
  • Alamos Gold Inc. filed its annual information form and 2023 annual report, including its audited financial statements for 2023, with the SEC on EDGAR as well as on SEDAR+ (Mulatos, Sonora).
  • Discovery Silver Corp. announced financial results for 2023, and updated on work at its Cordero project in Chihuahua since Q4 2023. The release highlighted the feasibility study (FS) results on Cordero, which include a 19-year mine life producing 33 M Oz AgEq in concentrate per year over the life of mine (LOM), at an AISC of US$13.50 per Oz AgEq over the LOM, with a reserve base of 302 M Oz Ag, 840 K Oz Au, 3.0 B Lb Pb, 5.2 B Lb Zn, not including 240 M tonnes of resources outside the feasibility pit. The company had cash and cash equivalents of $58.9 M by the end of 2023.
  • Fortuna Silver Mines Inc. filed its fiscal 2023 annual report on Form 40-F with the U.S. Securities and Exchange Commission (San José, Oaxaca).
  • Gold Royalty Corp. filed its operating and financial results for Q4 and full year 2023. During the year the company received $3.05 M in revenue, with an adjusted net earning loss of $3.9 M while receiving 2,703 Oz AuEq. For 2024 Gold Royalty, which owns 340 royalties, including five producing projects, expects to receive between 5 K and 5.6 K Oz AuEq, roughly US$10 to US$11.2 M (Royalty on Cozamin, Zacatecas).
  • Americas Gold and Silver Corp. reported consolidated financial and operational results for 2023, including figures for its Mexican operations. At Cosalá, in Sinaloa, 1.1 M Oz Ag, 11.5 M Lb Pb and 34.1 M Lb Zn were produced at cash cost $8.47 per Oz Ag. “The Company is in the final stages of negotiation with a global metal trader to provide concentrate prepayment financing for the capital requirements at its 100%-owned El Cajón and Zone 120 silver-copper project (“EC120 Project”) at the Cosalá Operations.  The Company expects to close this financing in Q2-2024 with the goal to be producing higher-grade silver-copper concentrates by the end of 2024”.

ON FINANCING

  • Americas Gold and Silver Corp. closed its offering for total aggregate gross proceeds of C$7.8 M (Cosalá, Sinaloa).
  • Capitan Silver Corp. increased its non-brokered private placement from C$1.5 M to C$2 M (Cruz de Plata, Durango).
  • Kootenay Silver Inc. obtained receipt for a final short form base shelf prospectus with the securities regulators in each province and territory of Canada. The filing allows Kootenay to make offerings for up to a maximum of C$40 M during the 25-month period over which the base shelf prospectus is effective (Columba, Chihuahua).

ON RESOURCES AND DEVELOPMENT

  • Mag Silver Corp. filed on SEDAR the mineral resource and mineral reserves NI-43-101 compliant technical report for the Juanicipio mine in Zacatecas (44% MAG, 56% Fresnillo plc, mine operator). Juanicipio holds 17 M tonnes @1.86 gpt Au, 310 gpt Ag, 2.89% Pb, 5.32% Zn, containing 1.02 M Oz Au, 169.2 M Oz Ag, 492 K tonnes Pb, 904 K tonnes Zn in measured and indicated resources, and 14 M tonnes @ 1.06 gpt Au, 236 gpt Ag, 2.41% Pb, 6.12% Zn, containing 480 K Oz Au, 106.7 M Oz Ag, 339 K tonnes Pb, 860 K tonnes Zn in inferred resources. The Juanicipio plant achieved the designed 4,000 tpd throughput on September 2023.
  • Torex Gold Resources Inc. reported year-end 2023 mineral reserves and resources for the Morelos Complex in Guerrero. The complex includes the El Limón Guajes (ELG) mine open pits and underground, advanced development phase Media Luna deposit, pre-development phase EPO deposit and surface stockpiles. As can be seen on the table below, the total resources (measured and indicated resources plus inferred resources) add up to almost 10 M Oz AuEq. “Since releasing the March 2022 Technical Report, we have increased our Measured and Indicated resource 1 base by 1,979 koz AuEq (prior to mined depletion) over the last two years and strengthened the production profile by increasing our Proven and Probable reserves by 719 koz AuEq (prior to processed depletion) over the same period.”

ON DEALS AND CORPORATE ISSUES

  • Vizsla Silver Corp. announced an arrangement agreement with Vizsla Silver Royalties Corp. under which Vizsla Silver shareholders will vote on a special meeting where the distribution of common shares and warrants from Vizsla Royalties are to be arranged on a 1/3 basis. Vizsla Silver also entered into an equity distribution agreement with Canaccord Genuity Corp. in respect of an at-the-market equity program, which allows the company to issue up to C$50 M of Vizsla Silver shares from treasury to the public. “The ATM Program is intended to provide the Company with additional financing flexibility should it be required in the future. The volume and timing of distributions under the ATM Program, if any, will be determined in the Company’s sole discretion” (Panuco, Sinaloa).
  • Orex Minerals Inc. announced the resignation of David Gunning from the board, and the appointment of Adam Cegielski as independent chair of the company’s board of directors (Valenciana, Zacatecas).
  • GoGold Resources Inc. announced the re-election of members of the board on the annual and special meeting of shareholders held on March 26, 2024 (Los Ricos South, Jalisco).
  • Alamos Gold Inc. entered into a definitive agreement on which Alamos is to acquire all of the issued and outstanding shares of Argonaut Gold Inc. By this agreement Alamos is acquiring the Magino mine, located adjacent to its Island Gold mine in Ontario. Concurrently, Argonaut’s assets in USA and Mexico will be spun out to its existing shareholders as a newly created junior gold producer (“SpinCo”), which will own the Florida Canyon mine in USA, and the El Castillo Complex in Durango, La Colorada in Sonora, and Cerro del Gallo in Guanajuato. “Upon SpinCo going public, Alamos has agreed to subscribe for a further US$10 million to obtain a 19.9% interest in SpinCo”.
  • Vizsla Silver Corp. entered into an agreement to acquire the past-producing La Garra-Metates district in Sinaloa. The 16,962 Ha land package is between the San Dimas and Vizsla’s Panuco district, and exhibits low sufidation epithermal vein systems that have returned high grades over kilometers of strike. Vizsla entered into a share purchase agreement in March 27, 2024, with Exploradora Minera La Hacienda SA de CV and Manuel de Jesus Hernandez Tovar, with a cash payment of non-binding LOI of US$100 K, 258 K shares on signing; US$150 K cash and 476.2 K shares at three months; US$275 K cash, 535.7 K shares at six months; US$225 K, 595.2 K shares at nine months; US$350 K cash, 714.3 K shares at 12 months; US$300 K cash, 833.3 K shares at 15 months; US$375 K cash, 962.4 K shares at 18 months and US$1.3 M in cash, 1.19 M shares at 24 months. Vizsla is to pay back taxes on the concessions and the sellers will retain a 1% royalty that can be bought back for US$750 K at any time. “The finder’s fees is 2% NSR of the project payable to an arm’s length Mexican Company”.
  • Fresnillo plc. announced that Ms Bárbara Garza Lagüera and Mr Juan Bordes intend to stand down from the board at the next annual general meeting in May of 2024. “The Board has, therefore, invited Mr Charlie Jacobs to continue on the Board as a Non-Independent NonExecutive Director” (Fresnillo, Zacatecas).
  • First Majestic Silver Corp. completed the commissioning and commencement of bullion sales from its minting facility, First Mint LLC., located in Nevada. “The inaugural production run of bullion bars will be commemorated and sold as collectibles, complete with certificates of authenticity and exclusive packaging. These limited edition “First Strike” products will include 1,000 one-kilogram bars, 2,500 ten-ounce bars, and 5,000 five-ounce bars” (San Dimas, Durango).

ON SOCIAL RESPONSIBILITY

  • No Relevant News.

On the image below: Specularite-quartz matrix breccia in a project in the Sonoran Desert. Picture by Jorge Cirett.

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

/ Gambusino Prospector / Leave a comment

By Jorge Cirett                                             

During the 11th week of the year (March 11th to March 17th, 2024), companies working in Mexico posted at least 26 press releases. Three companies reported on exploration at its properties while three more released results for the last quarter/full-year. Four companies announced financing rounds for a total of C$7.8 M, one is delisting from one Stock Exchange and listing in another one, another is extending its warrants expiry date and one more is granting stock options. One company informed on work at its advanced property. One company obtained a hard-sought community authorization for exploration activities, while one other is stopping activities in Mexico. A company announced an appointment to the board and one more the optioning of a property. One company is to process third-party material at its mill, one is cancelling an option and its related financing round and one more is updating on its legal action against the Mexican government. ON MEXICO ISSUES, a couple of judicial resolutions set the application of the new mining law on hold. The anti-mining stance by the federal government is bearing fruit, pushing mining investment out of the country. ON EXPLORATION, in Sonora, Colibri Resource updated on work at its EP project. In Chihuahua, Kootenay Silver is to drill at Columba. In Durango, Silver Dollar is re-evaluating the Nora project. ON FINANCING, three companies informed on the opening or closing of financing rounds: Regency Silver (C$250 K), Reyna Silver (C$3.2 M), Defiance Silver (C$2.6 M) Guanajuato Silver granted options to directors, management and consultants. Pantera Silver is to extend the expiry date of warrants. Almaden Minerals is to change its listing stock exchange. ON RESOURCES AND DEVELOPMENT, Atacama Copper started drilling at Cristina, in Chihuahua, focusing on high-grade resources. ON DEALS AND CORPORATE ISSUES, USAntimony is closing operations in Mexico. Vortex Metal obtained community exploration approbation. Sonoro Gold announced an appointment to the board. Riverside Resources and Fortuna Silver signed an option agreement on the Cecilia project, in Sonora.  CMC Metals dropped the option on the Gavilanes project and the concurrent financing round on lack of exploration permit. Guanajuato Silver Company signed a new third-party processing agreement. Almaden Minerals and Almadex Minerals updated on its request for consultation under the CPTPP.  ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUES

  • According to the newspaper La Jornada a judge upheld a partial suspension on the reforms to the mining law, specifically on the article that disposes all mining concession applications not yet titled. First Majestic Silver promoted the appeal on grounds of unconstitutionality.
  • The Poder Judicial Federal suspended multiple parts of the reform to the Mining Law of last May 2023, as these are likely unconstitutional. By Mid-April the Supreme Court has to discuss if the reforms are invalidated because of violations to the legislative process, although the project on the Mining Law still has to be included on the minute. Some points addressed in the reform include the reduction from 50 to 30 years of duration of the concession, auctioning of mining concessions, community consultation and retribution and water use limitations among others.
  • The Mexican government mining policies are bearing fruit. The Mining Law changes of last year (likely to be soon rejected by the Supreme Court), the reluctance by the environmental agency (SEMARNAT) to reauthorize mining permits, the lack of permits for open pit mining, the unwillingness to end illegal blockades and the general anti-mining stance of the current federal government are working as expected, deterring mining investment and pushing the more disadvantaged players, junior foreign companies, out of the country. Just this week USAntimony is closing operations in Mexico, CMC Metals is bailing out of a deal to option a property because of SEMARNAT’s failure to extend an exploration permit and Almaden Minerals informed on the international proceedings regarding its Ixtaca project in Puebla. Those companies are adding to the likes of Fortune Silver, Argonaut Gold, Riverside Resources and Golden Minerals, among others, that have made public during this quarter their reassessment of continuing operations in Mexico or have current arbitration cases, like Silver Bull Resources on its Sierra Mojada project in Coahuila. How much this scenery is to change depends on when/if the Mining Law changes are repealed and the open pit mining ban scraped.

ON EXPLORATION

  • Silver Dollar Resources Inc. commenced its re-evaluation of the Nora property in Durango during last February, with the collection of 72 surface samples on the East, West and South anomalies, as well as from the main Candy structure. Rock samples on the Candy structure attempt to replicate the results from the previous operator, and will be reported when received.
  • Colibri Resource Corp. updated on exploration activities at its EP Gold project in Sonora. Work includes an airborne magnetic survey covering 1,385 ha at a height of 35 m and a 50 m spacing between flight lines. Similar equipment and survey parameters with previous surveys allowed for the combination of the datasets. Geological mapping completed on selected areas with 64 rock samples collected as well as 23 rocks for thin section petrography. Interpretation of geological, geochemical and geophysical surveys highlighted the importance of north-northeast trending structures, and the recognition of easterly trending ones. Colibri has identified 14 target areas, prioritizing four of these for drilling.
  • Kootenay Silver Inc. announced the initiation of the Q1 diamond drill program at Columba, in Chihuahua. The program envisages 15 to 17 holes for 5,000 m designed to expand upon previous intercepts along the D-Vein target. “The current drilling program is designed to extend the D-Vein in preparation of a follow up program of likely 15,000 meters, aimed to delineate a maiden resource expected in late 2024 which is dependent on additional drilling beyond the 5000 meter program and the financing it requires.”

ON MINING

  • Endeavour Silver Corp. announced financial and operating results for Q4 and full-year 2023. During the year the company produced 5.7 M Oz Ag, 37,858 Oz Au, or 8.7 M Oz AgEq, for a total revenue of $205 M, $37 M in operating cash flow before working capital changes and net income of $6.1 M. Consolidated cash cost net of by-product credits was $13.49 per Oz Ag, and an AISC of $22.93 per Oz Ag, impacted by higher costs. During the year Bolañitos in Guanajuato processed 441 K tonnes to produce 537.5 K Oz Ag, while Guanaceví in Durango processed 433.4 K tonnes to produce 5.09 M Oz Ag. Construction of the Terronera mine in Jalisco continues on schedule. Cash position of $35.3 M and $42.5 M in working capital.
  • SilverCrest Metals Inc. released financial results for Q4 and year 2023. During the year Las Chispas mine in Sonora mined 300.9 K tonnes, processed 431.4 K tonnes at a rate of 877 tpd, with ore averaging 4.39 gpt Au, 423 gpt Ag (or 771 gpt AgEq), recovering 98.1% Au, 96.5% Ag, to produce 59,700 Oz Au, 5.65 M Oz Ag (or 10.4 M Oz AgEq) at cash cost $7.73 per Oz AgEq. In 2023 the company completed 13.2 km of horizontal and vertical underground development. During the year SilverCrest generated $116.7 M in net earnings and free cash flow was $121.1 M, holding cash and cash equivalents of $86 M by the end of the year.
  • Gold Resource Corp. announced full-year operational results from its Don David Gold Mine in Oaxaca. During Q4 2023 the mine milled 111.2 K tonnes @ 1.44 gpt Au, 85 gpt Ag, 0.39% Cu, 1.39% Pb, 2.95% Zn to produce 4,077 Oz Au, 282.5 K Oz Ag, 341 Cu tonnes, 1,072 Pb tonnes, 2,884 Zn tonnes in the quarter, adding up to 18,534 Oz Au, 1.04 M Oz Ag (31,085 Oz AuEq). For 2024 the guidance is to produce 13,000 to 15,000 Oz Au, 1.25 to 1.4 M Oz Ag, (29,500 to 31,500 Oz AuEq) at cash cost $1,450 to $1,650 per Oz AuEq. Negotiations during Q4 2023 reduced royalties from 5% to 3% on the La Tehuana, El Aguila, and Mina El Aire mining concessions.

ON FINANCING

  • Regency Silver Corp. closed further $253 K of a previously announced non-brokered placement of $800 K. The company also granted stock options to acquire 1.7 M of common shares to directors, officers, employees and consultants (Dios Padre, Sonora).
  • Pantera Silvera Corp. applied to extend the expiry date of 11.8 M share purchase warrants to March 11, 2025 (Nuevo Taxco, Guerrero).
  • Reyna Silver Corp. increased the size of its non-brokered listed issuer financing exemption (“LIFE”) announced on Feb 14, 2024, and its previously announced concurrent non-brokered private placement. The amended LIFE offering is to raise up to $3.2 M (Guigui, Chihuahua).
  • Almaden Minerals Ltd. informed that because of the low price of its share (due to the dispute with the Mexican government. – See below) the company will voluntarily delist from the NYSE and parallelly seek a listing on the OTCQB Marketplace (Ixtaca, Puebla).
  • Defiance Silver Corp. closed the final tranche of its previously announced non-brokered private placement for aggregate gross proceeds of C$2.6 M. Windermere Capital Fund SPC – Breakaway Strategic Resource SP, an insider of the company purchased C$1.2 M in shares, taking its ownership to a total of 41.5 M common shares and 3.05 M warrants. (Zacatecas, Zacatecas).
  • Guanajuato Silver Company Ltd. granted stock options and restricted share units to select officers, directors, employees and consultants (El Cubo, Guanajuato).
  • Sierra Madre Gold and Silver Ltd. upsized and closed its previously announced non-brokered private placement financing raising total gross proceeds of $1 M (La Guitarra, Estado de Mexico).

ON RESOURCES AND DEVELOPMENT

  • Atacama Copper Corp. started a 10,000 m diamond drilling campaign at its Cristina project in Chihuahua. “The Cristina project consists of multiple outcropping quartz veins that are frequently greater than 10 metre in width and extend for a currently known strike length of up to five kilometres. At least four parallel mineralized vein zones have been mapped and sampled to date”. Epithermal to mesothermal mineralization is known to occur over 1,100 m of vertical range, hosted by andesitic volcanic rocks of the Lower Volcanic Group and locally covered by Upper Volcanic Group rhyolitic rocks. Current open pit constrained resources are centered on the Guadalupe vein, comprising 752 K Oz AuEq in indicated resources and 777 K Oz AuEq in inferred resources. Atacama is trying to define an underground higher-grade resource.

ON DEALS AND CORPORATE ISSUES

  • United States Antimony Corp. announced plans to discontinue all Latin America operational activities and close its US Antimony Mexico, S.A. de C.V. (USAMSA) subsidiary, terminating the majority of its employees on March 11, 2024, immediately. “The Company intends to possibly sell or lease its USAMSA entity, operations, or assets over the next year and has initiated an active search for buyers or leasing opportunities of its operations and/or existing assets.” United States Antimony will continue to hold its existing Los Juarez mining claims in Queretaro. The reasons stated to close include high operating costs, new stringent Mexican mining laws, safety concerns, and the inability to collect back taxes from the Mexican government.
  • Vortex Metals Inc. announced the authorization by the Santiago Astata Agrarian Community to Vortex to carry on mineral exploration activities, including drilling, at its Zaachila project in Oaxaca. “Furthermore, the company has committed to forming an environmental monitoring committee with active community participation to oversee the activities and ensure environmental protection throughout the exploration program”.
  • Sonoro Gold Corp. appointed Katherine Reagan to the board of directors, in addition to her position of vice president of corporate development and corporate secretary (Cerro Caliche, Sonora).
  • Riverside Resources Inc. signed an option agreement with Fortuna Silver on Riverside’s Cecilia project in Sonora. The option term agreement envisages 5 years to earn 51% by spending US3.75 M, delivery of $150 K in cash payments and at least $500 K spent on work in the first year. Fortuna paid Riverside the initial $25 K on signing, and is to pay $25 K on filing of the agreement in Mexico, and further $25 K per year, with Riverside acting as operator charging a 10% management fee on top of work spending. Upon earning 51%, Fortuna may earn 80% by spending an additional $2.25 M in work over 3 years. After earning 80%, Fortuna might elect within 120 days to pay Riverside $5 M cash and grant Riverside a 2% NSR where 1% NSR may be purchased for $3 M, with Fortuna earning 100% in the project. The low sulfidation Au-Ag epithermal mineralization is associated to at least two nested dome complexes in sedimentary rocks.
  • CMC Metals Ltd. announced the cancellation of the $1.2 M private placement previously announced due to the failure, of the property owner of the Ag-Au Gavilanes project in Durango, to achieve an extension of the exploration permit with SEMARNAT (Mexico’s environmental Agency). “CMC has subsequently served notice of its intent to terminate the agreement with Sailfish Royalty Corp. to acquire the Gavilanes project but remains interested in securing exclusivity rights until October 2024.” The company intends to focus on its flagship Silverknife property in British Columbia.
  • Guanajuato Silver Company Ltd. announced the signing of a new third-party processing agreement with REM Marfil S.A. de C.V., a local Guanajuato based company. Under the agreement mineralized material from the past producing La Providencia mine is to be processed at the El Cubo and Cata processing facilities in Guanajuato. “The Agreement covers the processing of an initial 80,000 dry metric tonnes of mineralized material with a minimum head grade of 0.43 grams per tonne gold and 192 grams per tonne silver.”
  • Almaden Minerals Ltd. and Almadex Minerals Ltd. updated on its Request for Consultation delivered to the Mexican government in December 2023 according to the Comprehensive and Progressive Agreement of for Trans-Pacific Partnership (CPTPP). The Mexican government acknowledged receipt but never proposed dates for a consultation meeting. On March 14, 2024, Almaden delivered to Mexico written notice of its intention to submit a claim to arbitration under the CPTPP. “The damages relating to the Almaden and Almadex Claim will be for no less than US$200 million, in the aggregate. The Notice enables the Company to initiate arbitration should an amicable resolution of the dispute with the Mexican government not be reached.”

ON SOCIAL RESPONSIBILITY

  • No Relevant News.

On the image below: Specularite-quartz matrix breccia in a project in the Sonoran Desert. Picture by Jorge Cirett.

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

/ Gambusino Prospector / Leave a comment

By Jorge Cirett                                             

During the 9th week of the year (February 26th to March 3rd, 2024), companies working in Mexico posted at least 23 news releases. One company reported on exploration at its property, one published its guidance for 2024, one released production results for the last quarter and one is stopping mining operations. Four companies announced financing rounds for a total of C$5.8 M, while one more announced a C$34 M financing. One company declared a dividend and one more the increase of its loan credit facility. One company informed on work at its advanced property and one more updated on ongoing development at a new property. One company is disposing of an interesting property, two announced director’s appointments and one more informed on its litigation process against the Mexican government. ON MEXICO ISSUES, the head of the Economy Secretariat announced the acquisition of the remaining 49% of the company producing salt from coastal flats in Baja California Sur. The first work pane under T-MEC was installed to review labor matters on a Zacatecas mine. ON EXPLORATION, in Sonora, Tocvan Ventures is to commence drilling at Pilar. ON MINING, Argonaut Gold announced its production guidance for 2024. Starcore International Mines released production results for the quarter. Golden Minerals is stopping mining at Velardeña, in Durango, and evaluating its alternatives. ON FINANCING, five companies informed on the opening or closing of financing rounds: Sierra Madre Gold and Silver (C$1 M), CMC Metals (C$1.2 M), Reyna Silver (C$2.5 M + $500 K), Defiance Silver (C$1.09 M), Vizsla Silver (C$34 M). Alamos Gold declared a quarterly dividend. Guanajuato Silver Company announced the increase of its gold loan credit facility to US$13.3 M. Aztec Minerals granted options to directors, management and consultants.  ON RESOURCES AND DEVELOPMENT, Torex Gold reported good drilling intercepts on brownfields and near mine exploration on several deposits at its Limón Guajes property in Guerrero. Avino Silver updated on development work at La Preciosa, in Durango. ON DEALS AND CORPORATE ISSUES, Ranchero Gold is disposing of its Santa Daniela property in Sonora. Silver Bull updated on the arbitration process on its dispute with the Mexican government. US Antimony and Hecla Mining announced director’s appointments. ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUES

  • Raquel Buenrostro, head of the Economy Secretariat (Secretaría de Economía) announced the nationalization of Exportadora de Sal, the company that produces salt from coastal plains in Guerrero Negro, Baja California Sur, by buying the 49% stake of the Japanese Mitsubishi company (In the 1980’s, the Mexican government managed even businesses that sold bicycles, the actual administration seems adamant in getting back to those times).   
  • The governments of the United States, Canada and Mexico installed the first work pane since the signature of the T-MEC, to resolve if there is or not a violation of workers’ rights at Grupo Mexico’s San Martín mine, in Zacatecas.   

ON EXPLORATION

  • Tocvan Ventures Corp. is set to commence drilling at its Pilar project in Sonora. After a year of focusing on bulk sampling and land consolidation, the company is to begin systematic drilling for resource definition and additional targeting. “The initial focus will be on infill and step-out targeting within and adjacent to the Pilar Main Zone including where previous drill campaigns successfully discovered the southern extension of the Main Zone, returning 108.6 meters of 0.8 g/t Au, including 9.4 meters of 7.6 g/t Au and 5 g/t Ag.”

ON MINING

  • Argonaut Gold Inc. announced its 2024 guidance for production, cost per ounce and exploration expenditure forecast, including figures for its Mexican operations. At La Colorada, in Sonora, Argonaut Gold is aiming to produce 5 to 6 K Oz Au on residual operations, at $1,600 to $1,700 cash cost and an AISC of $1,600 to $1,700 per Oz AuEq. At San Agustín, in Durango, Argonaut intends to mine 6.8 to 7.1 M tonnes of ore grading 0.45 to 0.50 gpt Au, recovering 37% to 39% Au to produce 35K to 40 K Oz Au at cash cost $1,650 to $1,750 per Oz Au and an AISC of $1,800 to $1,900 per Oz Au. Argonaut’s Mexican operations are expected to be cash flow breakeven. “A financial advisor has been appointed to assess strategic alternatives for the Mexican operations, including the sale of one or more of the assets”.
  • Starcore International Mines Ltd. announced production results for the Q3 ended January 2024, at its San Martin mine in Queretaro. During the period 52.7 K tonnes were milled, grading 1.58 gpt Au, 14.6 gpt Ag, recovering 89.1% Au, 50.3% Ag, to produce 2,514 Oz AuEq.
  • Golden Minerals Co. announced that it has elected to stop operations at its Velardeña properties in Durango. The company restarted mining operations in December 2023 with the goal of achieving positive cash flow during the first half of 2024. As the initial performance of the mine and processing plant has not achieved the results projected, the decision to cease mining operations was reached. Golden intends to “evaluate potential alternatives for the Velardeña Properties, which may include a sale of properties or winding up of certain of the Company’s Mexico operations.”

ON FINANCING

  • Sierra Madre Gold and Silver Ltd. announced a non-brokered private placement aiming to raise $1 M “with an existing long-term institutional shareholder”. Net proceeds are to be used to fund the care and maintenance on, and the mine restart plan at La Guitarra mine, in Estado de Mexico.
  • CMC Metals Ltd. is to carry a non-brokered private placement for aggregate gross proceeds of up to $1.2 M (Gavilanes, Durango).
  • Reyna Silver Corp. increased the size of its non-brokered private listed issuer financing exemption (LIFE) private placement previously announced due to investor demand, to go from $1.5 M to $2.5 M. The company is also completing a concurrent non-brokered private placement for gross proceeds of up $500 K to purchasers pursuant to other applicable exemptions under NI 45-106 (Guigui, Chihuahua).
  • Defiance Silver Corp. closed the first tranche of its previously announced private placement, for aggregate proceeds of C$1.09 M. Defiance also extinguished a debt for shares in the amount of $46.6 K (Zacatecas, Zacatecas).
  • Alamos Gold Inc. declared a quarterly dividend of US$0.025 per common share (Mulatos, Sonora).
  • Vizsla Silver Corp. completed its previously bought deal prospectus for aggregate gross proceeds of C$34 M, which includes the exercise in full of the underwriter’s over-allotment option for 3 M offered shares. The company paid to the underwriter a cash commission equal to 6% of the gross proceeds raised under the Offering. (Panuco, Sinaloa).
  • Guanajuato Silver Company Ltd. announced that the previously arranged US$7.5 M Gold Loan Credit Facility financing with Ocean Partners UK Ltd. has been increased to US$13.3 M. “The loan facility is for a term of 36 months from the date of the initial draw; it is repayable in equal fixed monthly installments of gold totalling approximately 338 troy ounces per month for a period of 30 months following a six-month grace period from the date of the initial draw.” The company also completed its shares-for-debt transaction totaling C$414.7 K by issuing shares, including those to three non-arms-length parties to settle for C$40 K (El Cubo mine complex, Valenciana mines complex, San Ignacio, in Guanajuato).
  • Aztec Minerals Corp. granted 3.27 M stock options to directors, management and consultants of the company (Cervantes, Sonora).

ON RESOURCES AND DEVELOPMENT

  • Torex Gold Resources Inc. released results from its 2023 drilling program at El Limón Guajes in Guerrero. Highlighted core length intervals comprise 22.91 m @ 10.94 gpt Au, 12 gpt Ag, 0.41% Cu; 7.50 m @ 8.09 gpt Au, 119 gpt Ag, 2.12% Cu At El Limón Sur Trend, 37.08 m @ 14.04 gpt Au, 9 gpt Ag, 0.38% Cu; 20.57 m @ 8.22 gpt Au, 29 gpt Ag, 1.02% Cu at El Limón Deep Trend, 12.33 m @ 8.92 gpt Au, 7 gpt Ag, 0.4% Cu; 4.66 m @ 2.13 gpt Au, 37 gpt Ag, 2.05% Cu at the Sub-Sill Trend and 4.00 m @ 11.78 gpt Au, 140 gpt Ag, 0.14% Cu; 3.55 m @ 10.07 gpt Au, 36 gpt Ag, 0.87% Cu at El Limón West Trend. During 2023, 60,699 m were drilled in 248 holes at El Limón Guajes brownfield and near mine exploration. For 2024, $12 M have been allocated to infill and step-out 54,500 m of drilling, focusing on further exploring the northeast trending structural corridors.
  • Avino Silver & Gold Mines Ltd. updated on ongoing development work at La Preciosa, in Durango. Current works and prep at the Avino mill include the rehabilitation of the office building, extensive sampling of historic surface mineralized stockpiles, haulage of such stockpiles to the Avino mill complex, reinforcement of walls at the mine entrance and previously developed underground areas and the rehabilitation of a thickener tank. “Once the rehabilitation work on the thickener is complete, production of a silver-gold concentrate from this stockpile material will commence which will be another milestone for the Company.”

ON DEALS AND CORPORATE ISSUES

  • Ranchero Gold Corp. approved on a special meeting of shareholders the disposition by its subsidiary the interest in four mining concessions covering the Santa Daniela property in Sonora. The disposition is subject to TSX approval, and the remaining US$1.9 M near-term cash payment will only be paid when the concessions have been transferred to Alamos Gold Inc.
  • United States Antimony Corp. added Joseph A. Carrabba as an independent director to its board (Juarez, Queretaro).
  • Silver Bull Resources Inc. updated on progress with its international arbitration claim against the Mexican government. Advances include the appointment of a three-person arbitration panel by the International Centre for Settlement of Investment Disputes, with a first session on February 13, 2024. A quantum expert was engaged by the company to assess its claims. Silver Bull is to file its Memorial in May 2024, with the Arbitration hearing slated for October 2025 (Sierra Mojada, Coahuila).
  • Hecla Mining Co. announced the appointment of Mark P. Board as a director, effective February 23, 2024 (San Sebastián, Durango).

ON SOCIAL RESPONSIBILITY

  • No Relevant News.

On the image below: subcrop of granitic rocks on a project in the Sonora desert. Picture by Jorge Cirett.

The Mining and Exploration News in Mexico: Highlights on the Third Week of February 2023

/ Gambusino Prospector / Leave a comment

By Jorge Cirett                                             

During the 7th week of the year (February 12th to February 18th, 2024), companies working in Mexico posted at least 27 news releases. Two companies reported exploration advances on their properties, two published their outlook for 2024, one released production results for January and one more applied for a mining permit. Five companies announced financing rounds for a total of C$7.25 M, and two more for another $1.6 M. Two companies informed on work at their advanced properties and two more released reserve and resource estimates for their deposits. One company is spinning a royalty to its shareholders, one more informed on the completion of a business combination, another on the signing of an option agreement on a property, one more on the signing of a waiver agreement, another on a director’s appointment and one other about a favorable ruling on its mining concessions. ON MEXICO ISSUES, at least 80% of copper production in Mexico is at stake with the new proposal of the president to forbid open pit mining. ON EXPLORATION, in Sonora, Minaurum updated on its 2024 program for Alamos, Aurifero and Adelita. In Sinaloa, Chesapeake Gold released metallurgical results for its Lucy project. In Guerrero, Minaurum updated on its program for 2024 at its Guerrero Gold Belt and Aurena properties. In Oaxaca, Minaurum updated on its 2024 program at Santa Marta. ON MINING, Avino provided its outlook for 2024 at Avino and La Preciosa. Guanajuato Silver updated on production during January 2024. Infinitum Copper submitted a mining permit for La Adelita. Agnico Eagle released 2023 production figures and its outlook for 2024. ON FINANCING, seven companies informed on the opening or closing of financing rounds: GR Silver (C$670 K), Sonora Desert (C$1 M), Sonoro Gold (C$1 M), Reyna Silver ($1.5 M), Goldgroup Mining (US$100 K), Aztec Minerals (C$1 M), Kootenay Silver (C$3.5 M).  ON RESOURCES AND DEVELOPMENT, Endeavour Silver informed on the construction advance at Terronera. Vizsla Silver reported drilling results from Panuco. Silver Dollar informed on exploration advances at La Joya. Fortuna Silver updated mineral reserves and resources at San Jose. Agnico Eagle released reserves ad resources estimates to the end of 2023 for several projects in Mexico. ON DEALS AND CORPORATE ISSUES, Vizsla Silver is spinning royalties from Panuco to its shareholders. Atacama Copper completed its business combination with TCP1. Orex Minerals signed an option to acquire the Valenciana project in Zacatecas. Silver Viper appointed an independent chair to the board of directors. GR Silver signed a waiver and release agreement with Mako Mining. Defiance Silver reported a favorable ruling involving the ownership of several mining concessions. ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUES

  • Luis H. Vázquez, president of the AIMMGM (Asociación de Ingenieros de Minas, Metalurgistas, y Geólogos de México) stated that the new proposal by the Mexican president to forbid open pit mining in the country endangers at least 80% of copper production in Mexico.  

ON EXPLORATION

  • Chesapeake Gold Corp. released initial metallurgical results from the Lucy project in Sinaloa. Unique composites from four holes underwent CN bottle roll test for 72 hours, with recoveries of 91-97% Au, 40-70% Ag. Assays from core drilling released in October of 2023 returned up to 24 m @ 6.11 gpt Au; 24 m @ 3.95 gpt Au; 30 m @ 2.57 gpt Au. The phase 2 exploration program is underway at the 483 ha Lucy project, program that includes 10 HQ holes totaling 900 m, to extend the identified mineralization along the 500 m skarn corridor.
  • Minaurum Gold Inc. outlined key objectives for its Alamos, Aurifero and Adelita projects in Sonora, Santa Marta in Oaxaca and Guerrero Gold Belt and Aurena in Guerrero. At Alamos, the company will continue underground rehabilitation, conduct metallurgical testing of primary targets, generate new exploration targets adjacent to the Promontorio and Quintera mines. At Aurifero, a drill program to test targets at depth has been submitted for permitting. At Adelita Infinitum has applied for permits to remove and sale high-grade Cu ore. At Santa Marta a permit application for 3,000 m of drilling has been submitted. At Guerrero Gold Belt and Aurena Minaurum Expects to advance the projects through joint ventures.

ON MINING

  • Avino Silver & Gold Mines Ltd. provided its outlook for 2024 and a summary of major milestones in 2023. For 2024 the company plans to process 700-750 K tonnes from the Avino mine and stockpiles from La Preciosa, both in Durango, to produce 2.5-2.8 M Oz AgEq. Having most of the mining and development equipment at Avino, minimal upfront capital is expected to be needed to begin mine development at La Preciosa, where the environmental permit has been submitted to the authorities. No drilling is planned for 2024. During 2023 the production from the Avino mine was within the 2.4-2.7 M Oz AgEq estimate, the PFS on the Oxide Tailings project was completed, the dry-stack tailings facility was operational for a year, 7,545 m of drilling were completed at Avino and the company received the ESR (Empresa Socialmente Responsible) award for the second year.
  • Guanajuato Silver Company Ltd. provided a production update for the month of January 2023. During the month the company mined 56.7 K tonnes and milled 56.7 K tonnes from Topia in Durango, El Cubo, and Cata in Guanajuato and Horcon in Jalisco, with recoveries of 88.7% Au, 88.2% Ag, 89.9% Pb, 81.4% Zn, to produce 1,843 Oz Au, 141.8 K Oz Ag, 279.7 K Lb Pb, 269.3 K Lb Zn (or 329.9 K Oz AgEq). Processing of third-party material added 40.9 K Oz AgEq to total production on the first month of the agreement. Topia produced 85.1 K Oz AgEq, and Horcon 10,183 Oz AgEq. Dewatering of the Villapando area of the El Cubo is opening zones with historical grades of over 350 gpt AgEq.
  • Infinitum Copper Corp. has applied for a mining permit, at La Adelita in Sonora, to the environmental agency (SEMARNAT). “As mining has traditionally taken place in the Cerro Grande area and the Company expects to access the mineralised body through the existing adit the permitting process is not expected to be overly complex”. A metallurgical test conducted by the SGM (Servicio Geológico Mexicano) through conventional flotation recovered 77% Au, 86.1% Ag, 85.2% Cu.
  • Agnico Eagle Mines Ltd. released production on 2023 and its outlook for 2024, including figures for its Mexican operations. During 2023 the Pinos Altos mine in Chihuahua produced 98,280 Oz Au at cash cost of $1,495 per Oz Au and $1,229 per Oz Au on a by-product basis. At La India, in Sonora, 75,904 Oz Au were produced at cash cost of $1,271 per Oz Au and $1,241 per Oz Au on a by-product basis. For 2024 Agnico’s forecast is to produce 100-105 K Oz Au at $1,268 cash cost per Oz Au at Pinos Altos and 25-30 K Oz Au at La India, at cash cost $1,365 per Oz Au. For 2025 and 2026 the envisaged production at Pinos Altos is 125-135 K at Pinos Altos and 115-125 k Oz Au respectively. To achieve that production Pinos Altos is expected to process 1.8 M tonnes averaging 1.86 gpt Au, 47.2 gpt Ag, recovering 94.7% Au, 46.9% Ag in 2024. In the case of La India, the production will come from residual leaching.

ON FINANCING

  • GR Silver Mining Ltd. closed the non-brokered private placement previously announced issuing shares for gross proceeds of C$670 K (Plomosas, Sinaloa).
  • Sonoran Desert Corp. is reducing the price and increasing the amount of its private placement offering. The company is now offering shares at $0.10 per unit intending to raise proceeds of up to C$1 M (Cuatro Hermanos, Sonora).
  • Sonoro Gold Corp. revised the pricing of its previously announced non-brokered placement offering to C$0.05 per share to raise up to C$1 M (Cerro Caliche, Sonora).
  • Reyna Silver Corp. announced a non-brokered listed issuer financing exemption (LIFE) private placement for gross proceeds of up to $1.5 M. “In addition to the Offering, the Company may, at its discretion, complete a concurrent non-brokered private placement of up to 4,166,667 Units for gross proceeds of up to approximately $500,000” (Guigui, Chihuahua).
  • Goldgroup Mining Inc. closed US$100 K of the previously announced convertible debt financing. “The Convertible Debt is unsecured, bears interest at 12% per annum, will be repayable on June 15, 2025 and is convertible into units of the Company at CAD $0.10 per unit at a fixed FX rate of 0.76 USD to CAD at the election of the holder.” (Cerro Prieto, Sonora).
  • Aztec Minerals Corp. closed a non-brokered private placement for aggregate gross proceeds of C$1.1 M (Cervantes, Sonora).
  • Kootenay Silver Inc. closed the first tranche of its previously announced non-brokered private placement for aggregate gross proceeds of C$3.48 M. The second tranche of the financing is expected to close next week, for aggregate gross proceeds of C$237 K, upon which the aggregate gross proceeds will be C$3.72 M (Columba, Chihuahua).  

ON RESOURCES AND DEVELOPMENT

  • Endeavour Silver Corp. released a Q3 2024 update on the construction advance at the Terronera project, in Jalisco. Overall project progress has reached 43%, with over 2,200 m of underground development completed in 2023, concrete foundation for the jaw crusher was finished, concrete for the grinding area is nearly complete, as well as the concrete for the flotation cell pedestals. The company remains focused for initial production on Q4 2024, to process at a rate of 2,000 tonnes per day to produce 38,000 Oz Au, 4 M Oz Ag annually over its 10-year mine life.
  • Vizsla Silver Corp. reported results from seven drill holes targeting La Luisa vein at its Panuco project in Sinaloa. Highlighted true width intercepts comprise 1.30 m @ 6.76 gpt Au, 42 gpt Ag; 4.60 m @ 2.64 gpt Au, 73 gpt Ag, 0.1% Pb, 0.4% Zn; 0.85 m @ 7.78 gpt Au, 78 gpt Ag, 0.1% Pb, 1.4% Zn; 1.00 m @ 2.95 gpt Au, 37 gpt Ag, 0.7% Pb, 3.1% Zn. The Luisa vein is in the southwest part of the Panuco district, and has been mapped for 1,500 m on surface and defined by drilling for 1,670 m of longitude, 450 m downdip and 2.93 m of width averaging 3.53 gpt Au, 84 gpt Ag, 0.4% Pb, 1.4% Zn. Recent work by Vizsla points to a tilted mineralization corridor. The vein currently holds 4 M Oz AgEq averaging 459 gpt AgEq in indicated resources and 25.3 M Oz AgEq averaging 386 gpt AgEq in the inferred category.
  • Silver Dollar Resources Inc. provided an update on drill target development work on the Coloradito-Noria portion of the La Joya project in Durango. The company has highlighted three parallel zones supported by a ground magnetic survey anomalies. The S-1 zone is mostly covered by caliche and has not yielded significant results yet. The S-2 zone is also known as the Central dyke zone, with mineralization associated to a dyke. The S-3 zone is coincident with the Brazo zone, where previous drilling intersected unmineralized intense and extensive alteration. Sampling at the Dyke zone has returned 134 of 170 samples with values over 100 gpt Ag, peaking at 4,311 gpt Ag.
  • Fortuna Silver Mines Inc. update mineral reserves and mineral resources, including figures for its Mexican operations. At San Jose, in Oaxaca, proven and probable reserves stand at 733 K tonnes @ 156 gpt Ag, 0.98 gpt Au, containing 3.7 M Oz Ag, 23 K Oz Au; measured and indicated resources of 1.05 M tonnes @ 147 gpt Ag, 1.11 gpt Au, containing 5.0 M Oz Ag, 37 K Oz Au; inferred resources of 5.55 M tonnes @ 108 gpt Ag, 0.55 gpt Au, containing 19.3 M Oz Ag, 97 K Oz Au. “The Brownfields exploration program budget for 2024 at San Jose is $4.9 million, which includes 13,900 meters of diamond drilling, focused on testing and extending the Yessi vein as well as exploring additional targets within the mine area”.
  • Agnico Eagle Mines Ltd. released mineral reserves and resources estimates to the end of 2023, including figures from its Mexican operations. The company holds in Mexico, across two operating mines and several projects, 1.22 M Oz Au, 49.9 M Oz Ag, 591.5 K tonnes Cu, 777.4 K tonnes Zn in the proven and probable reserves category, 2.37 M Oz Au, 58.8 M Oz Ag, 72.7 K tonnes Cu, 114.3 K tonnes Zn in the measured and indicated resources category and 1.92 M Oz Au, 35.7 M Oz Ag, 47.3 K tonnes Cu, 22.4 K tonnes Zn as inferred resources.

ON DEALS AND CORPORATE ISSUES

  • Vizsla Silver Corp. intends to enter into an agreement with its subsidiary Vizsla Royalties Corp. (Spinco) “within 45 days of this news release in respect of the spinout of the shares of Spinco to the Company’s shareholders….. Spinco currently holds, indirectly, a net smelter royalty on any future mineral production at Vizsla Silver’s flagship, 100% owned Panuco silver-gold project located in Mexico. The Company further announces that holders of its common shares (the “Vizsla Silver Shares”) will be entitled to 1/3 of a common share of Spinco and 1/3 of a common share purchase warrant of Spinco for each Vizsla Silver Share held on the share distribution record date.” (Panuco, Sinaloa).
  • Atacama Copper Corp. announced the completion of its business combination with TCP1 Corp., pursuant to which the resulting issuer has acquired all the issued and outstanding common shares of TCP1 in exchange for common shares of the resulting issuer, resulting in the reverse takeover of the resulting issuer by TCP1. A 10,000 m drilling program will commence at Cristina, in Chihuahua, in the next two weeks, aimed at better delineating and expanding within the main Guadalupe vein and other high-grade veins.
  • Orex Minerals Inc. signed an option agreement with Exploraciones El Cairo S.R.L, to acquire the Valenciana project in Zacatecas. Orex has paid US$15 K on signing, and further payments comprise US$10 K at 6 months, US$35 K at 12 months, US$15 K at 18 months, US$15 K at 24 months, US$20 K at 30 months, US$20 K at 36 months, there after US$25 K every six months. The vendor retains a 2% NSR on the property, 1% on staking around the concession and 0.5% on acquisition of properties within the defined area of influence. When the NSR payments reach US$10 M, the NSR values drop by 50%.
  • Silver Viper Minerals Corp. appointed Taj Singh as independent chair of the company’s board of directors, succeeding Mr. Gary Cope, who will be stepping into retirement (La Virginia, Sonora).
  • GR Silver Mining Ltd. signed a waiver and release agreement with Mako Mining Corp. under which “the parties were mutually released from outstanding undertakings, covenants, indemnities and obligations set out in, arising from, or related to GR Silver Mining’s acquisition of Marlin Gold Mining Ltd.” Mako retains 1% NSR royalty on the concessions owned by Oro Gold de Mexico SA de CV. In consideration for the waiver and release Mako paid GR Silver US$960 K, of which US$500 K were in cash, and the issued to GR Silver of 296.7 K shares of Mako (Plomosas, Sinaloa).
  • Defiance Silver Corp. reported the favorable ruling of the Mexican Court to restore its rightful ownership to the mining concessions at the Tepal project in Michoacan. In June 2022 the company contested an illegal transfer of certain mining concessions to a third-party individual. The Court confirmed the nullity of the transfer, and ordered the cancellation of such transfer. “The judgement will be fully enforceable at the expiration of a 9-day appeal process expiring on February 27, 2024”.

ON SOCIAL RESPONSIBILITY

  • No Relevant News.

On the image below: Banded, locally brecciated quartz-barite-specularite vein on a project of the Sonoran Desert. Picture by Jorge Cirett.

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

/ Gambusino Prospector / Leave a comment

By Jorge Cirett                                             

During the 5th week of the year (January 29th to February 4th, 2024), companies working in Mexico posted at least 19 news releases. Two companies reported exploration advances on their properties and two companies released quarterly production results. Five companies announced financing rounds, one posted on recent trading activity and one more has been added to a silver special listing. Two companies informed on work at their advanced properties and one more on commencement of mining. Two companies informed on the appointment and resignation of senior officers, one on 2023 performance and its royalty guidance for 2024 and one more on the refurbishment of a mill by a partner. ON MEXICO ISSUES, Gold production fell in Mexico during 2023, but four new projects are poised to start production in 2024. ON EXPLORATION, in Sonora, Aztec Silver informed on RC drilling results from its Cervantes project. In Chihuahua, Kingsmen Resources updated on work at Las Coloradas. ON MINING, Gold Resource Corp. and Sierra Metals reported production results for Q4 and full-year 2023. ON FINANCING, Mexus Gold is to raise $250 K, Zacatecas Silver C$1.8 M, Atacama Copper C$12.9 M (to invest in Chile), Capstone Copper C$375 M (to invest in Chile) and Kootenay Silver C$2.5 M. Chesapeake Gold was added to the “Nasdaq Metal Focus Silver Miners Index”. Kootenay Silver informed on recent trading activity.  ON RESOURCES AND DEVELOPMENT, Silver Storm released drilling results from La Parrilla in Durango. CMC Metals updated on work at Gavilanes, in Durango. Bendito Resources is to commence mining base metals at Oposura, in Sonora. ON DEALS AND CORPORATE ISSUES, Orogen Royalties provided an update of 2023 figures and the guidance for 2024 royalties from the Ermitaño deposit in Sonora. Goldgroup Mining and Vizsla Silver informed on resignation/incorporation of senior officers. Xali Gold reported its mill in Nayarit is now operational, and is assessing a JV. ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUES

  • Raúl García Reimbert, president of the Colegio de Ingenieros de Minas, Metalurgistas y Geólogos de México, stated that four new projects in Mexico are set to start producing gold in 2024, bringing to the market 323,400 Oz Au per year. In 2022 the gold production in Mexico reached 4.77 M Oz, which fell to 2.27 M Oz in 2023, in part by the long Union strike at Peñasquito. The projects to start producing gold are Media Luna by Torex Gold, in Guerrero, Cerro de Oro by Minera Alamos in Zacatecas, Cerro Caliche by Sonoro Gold in Sonora and Terronera by Endeavour Silver in Jalisco.  

ON EXPLORATION

  • Aztec Minerals Corp. announced additional reverse circulation drill results from its Cervantes project in Sonora. Drilling has extended the California zone of gold mineralization for 1 km in the East-West direction, and added the quartzite unit as a favorable gold host. Highlighted drill length intercepts comprise 47.12 m @ 0.51 gpt Au, 57.76 m @ 0.42 gpt Au, 59.44 m @ 0.28 gpt Au; 25.84 m @ 0.44 gpt Au, 109.44 m @ 0.20 gpt Au. “In 2024 it is planned for further technical studies, reconnaissance work on other targets, metallurgical testing and the Cervantes phase 3B RC drilling program of approximately 20 drillholes comprising 2,850 meters including California North and Jasper”.
  • Kingsmen Resources Ltd. updated on work being carried out at Las Coloradas project in Chihuahua. “Portions of the Soledad structure were mined by ASARCO (American Smelting and Refining Company), the U.S. based subsidiary of Grupo Mexico in the period 1944 to 1952….. Average mining diluted grades are reported to have been in the order of 0.6 to 0.8 g/t gold, 300 to 518 g/t silver, 6.2 to 10.9 % lead and 6.5 to 10.3 % zinc, from four different veins, called La Soledad, Santo Niño, Eva and Rosario.” Kingsmen’s sampling in the old workings confirmed the presence of high-grade silver, and significant silver on La Soledad and La Soledad II vein systems, which are 1.7 and 1.0 Km long respectively

ON MINING

  • Gold Resource Corp. provided preliminary fourth quarter results for 2023. During the quarter the Don David property in Oaxaca milled 111.2 K tonnes @ 1.44 gpt Au, 85 gpt Ag, 0.39% Cu, 1.4% Pb, 2.9% Zn, to produce 4,077 Oz Au, 282,5 K Oz Ag, 341 tonnes Cu. For the year, Gold Resource sold 30,119 Oz Au, 1.06 M Oz Ag (or 42,757 Oz AuEq), 1,348 tonnes Cu, 5,391 tonnes Pb, 14,157 tonnes Zn.
  • Sierra Metals Inc. reported Q4 2023 production, including figures from its operations in Mexico. At Bolivar, in Chihuahua, during the fourth quarter 410 K tonnes were processed at a daily rate of 4,686 tonnes grading 0.84% Cu, 16.6 gpt Ag, 0.42 gpt Au, recovering 92.6% Cu, 82.4% Ag, 68.4% Au, to produce 7.06 M Lb Cu, 179 K Oz Ag, 3,757 Oz Au. For the year 1.48 M tonnes were processed, grading 0.85% Cu, 17.3 gpt Ag, 0.41 gpt Au, recovering 92.9% Cu, 82.0% Ag, 68.3% Au, to produce 25.77 M Lb Cu, 674 K Oz Ag, 13,347 Oz Au (or 36.6 M Lb CuEq). “… plans are underway to enhance the capacity of the tailings dam which will enable the plant to increase production levels”. For 2024 production guidance for Bolivar is 23.9 to 27.6 M Lb Cu, 650 to 750 K Oz Ag, 8,000 to 9,200 Oz Au.

ON FINANCING

  • Mexus Gold US. Announced its intent to raise $250 K “the estimated amount to pay for its currently outstanding but completed audits bringing Mexus back into compliance with the OTCQB exchange, paying for outstanding claim taxes, and general and administration purposes” (Santa Elena-Don Julio, Sonora).
  • Kootenay Silver Inc. confirms that its board and management are not aware of any corporate development “or undisclosed material change relating to the Company or its operations that would account for the recent trading activity and decrease in its share price” (Columba, Chihuahua).
  • Chesapeake Gold Corp. has been added to the Nasdaq Metal Focus Silver Miners Index, “and believe that our selection to this index is further recognition of our progress and achievements” (Metates, Durango).
  • Zacatecas Silver Corp. announced a non-brokered placement financing for totals proceeds of C$1.8 M (Zacatecas Silver project, Zacatecas).
  • Atacama Copper Corp. closed the third and final tranche of the previously announced brokered private placement for gross proceeds of C$300 K and aggregate gross proceeds of C$12.9 M raised in connection with the proposed transaction (Yecora, Sonora).
  • Capstone Copper Corp. and Orion Fund JV Ltd, Orion Mine Finance Fund II LP and Orion Mine Finance (Master) Fund I-A LP jointly announce that they have entered into an agreement with a syndicate of underwriters led by RBC Capital Markets, as Lead Bookrunner and including National Bank Financial and Scotiabank as Joint Bookrunners pursuant to which the underwriters have agreed to purchase, on a bought deal basis, shares for aggregate gross proceeds of C$375 M. The funds are to be used on projects in Chile (Cozamin, Zacatecas).
  • Kootenay Silver Inc. announced a non-brokered private placement offering aimed to raise up to C$2.5 M in gross proceeds. (Columba, Chihuahua).

ON RESOURCES AND DEVELOPMENT

  • Silver Storm Mining Ltd. released results from seven diamond holes from its phase 1 drilling program at La Parrilla, in Durango. Highlighted core length intervals from the San Nicolas Zone comprise 9.39 m @ 676 gpt Ag, 0.12% Cu, 0.3% Pb, 0.1% Zn (including 5.25 m @ 988 gpt Ag, 0.18% Cu, 0.3% Pb, 0.1% Zn); 2.20 m @ 1,186 gpt Ag, 0.32% Cu, 0.2% Pb; 1.75 m @ 0.13 gpt Au, 1,479 gpt Ag, 0.25% Cu, 1.2% Pb, 2.1% Zn; 0.50 m @ 5.90 gpt Au, 26 gpt Ag; 4.09 m @ 172 gpt Ag, 2.2% Pb, 3.1% Zn; 7.50 m @ 325 gpt Ag, 3.7% Pb, 3.8% Zn (including 3.45 m @ 600 gpt Ag, 6.1% Pb, 6.9% Zn); 2.45 m @ 150 gpt Ag, 2.6% Pb, 3.0% Zn. “Prior to placing La Parrilla on care and maintenance First Majestic had commenced mining over 5 established levels and 80 vertical metres at San Nicolas. We have now been able to expand and trace the high-grade mineralization 370 metres down from surface, with continuity.”
  • CMC Metals Ltd. provided an update on its Gavilanes project in Durango. The management team of the company participated on the annual assembly of the Ejido Los Gavilanes, where they agreed to enter into a letter of intent (LOI) to advance an exploration agreement. CMC is also working in the financing of the project, with its recent participation on the VRIC conference in Vancouver. The company is active working to obtain financing for phase 1 of the project, which is to include funding for up to 4,500 m of drilling. The current inferred resource is 1.76 M tonnes @ 320 gpt AgEq, containing 18.2 M Oz AgEq.
  • Bendito Resources Inc. finalized logistics for the commencement of phase 1 mining of high-grade Zn-Pb ore at Oposura, in Sonora. Ocean partners has provided a US$2 M revolving pre-financing facility, bearing interest at 11.5% and repayable 120 days from the date advanced. The transaction stipulates a minimum size of 5K tonnes per lot, grading greater than 20% Zn+Pb. The historical mineral resource estimation contains 70-100 K tonnes of this high-grade ore.

ON DEALS AND CORPORATE ISSUES

  • Orogen Royalties Inc. provided a 2023 update and forecast for 2024, including figures from its Mexican plays. The company holds a 2% NSR royalty on the production by First Majestic Silver on the Ermitaño project in Sonora, where 28,056 Oz Au, 582.5 K Oz Ag were produced during Q4 2023. As of the end of 2022 the Ermitaño mine had 369,000 Oz Au, 5.8 M Oz Ag in measured and indicated resources, and 269,00 Oz Au, 7.7 M Oz Ag in inferred resources. For 2024, First Majestic’s production guidance is between 81,000 to 90,000 Oz Au, and 1.1 to 1.2 M Oz Ag, “with over 90% of the production from the Ermitaño mine”.
  • Goldgroup Mining Inc. announced the resignation of Javier Reyes from the board of directors of the company (Cerro Prieto, Sonora).
  • Vizsla Silver Corp. informed Simon Cmrlec, a highly experienced senior engineer is joining Vizsla as chief operating officer (COO) and will be tasked with advancing the Panuco project in Sinaloa towards production. He will commence the role on April 1, 2024.
  • Xali Gold Corp. informed that Grupo Minero WIYA has made the required repairs to get operational Xali Gold’s San Dieguito de Arriba (SDA) Plant in Nayarit. Under the current agreement WIYA has to pay US$150 K per month for 10 months and upon completion of paying a total of US$1.5 M, WIYA would have the right to own the SDA Plant, “however discussions are now ongoing to change these terms into a Joint Venture and operate the plant together for shared profits. Currently, Magellan Acquisition Corp. (“Magellan”), and the Company each own 50% of the SDA plant”.

ON SOCIAL RESPONSIBILITY

  • No Relevant News.

On the image below: Specularite-quartz breccia vein on a project of the Sonoran Desert. Picture by Jorge Cirett.

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

/ Gambusino Prospector / Leave a comment

By Jorge Cirett                                             

During the 3rd week of the year (January 15th to January 21st, 2024), companies working in Mexico posted at least 25 news releases. Three companies reported exploration advances on their properties, eight companies released production results and one more announced it is now processing material from a third party at its installations. Two companies announced financing rounds, one paid back a fair amount of debt and made the final installment of a layback agreement. One company is arranging convertible debt financing and one other closed a debt settlement with shares and informed on debt restructuring. Three companies updated on work at its advanced properties. One company updated on 2023 work and plans for 2024, another announced a favorable resolution of issues relating to its mining claims and one more on the intention to spin its royalty company to its shareholders. ON MEXICO ISSUES, the president of the Colegio de Ingenieros de Minas, Metalurgistas y Geólogos de México informed on the detrimental aspects brought by the new mining law. ON EXPLORATION, in Sonora, Aztec Silver informed on RC drilling results from its Cervantes project. Colibri contracted an air mag survey for El Plomo in Sonora. In Oaxaca, Vortex Metals updated on work in 2023 and plans for 2024 at its Zaachila and Riqueza Marina projects. ON MINING, Orla Mining, First Majestic Silver, Bear Creek Mining, Avino Silver, Torex Gold, Pan American Silver, Argonaut Gold and Fortuna Silver reported production results for Q4 and full-year 2023. Guanajuato Silver Company is to process material from a Mexican company at its El Cubo mill. ON FINANCING, Orla Mining repaid $25 M of debt and the final $22.8 M installment of the Layback agreement to Fresnillo plc. GoldGroup Mining is to arrange a convertible debt financing for US$400 K. GR Silver is to undertake a private placement for up to $1.5 M. Regency Silver completed the first tranche of a private placement expected to raise $800 K. Luca Mining informed on the restructuring of debts with service providers and clients.  ON RESOURCES AND DEVELOPMENT, Defiance Silver released results from drilling at San Acacio, in Zacatecas. Impact Silver informed on drill intercepts from its Plomosas mine in Chihuahua. Orla Mining confirmed gold oxide mineralization on the Fresnillo plc property and on structures channelling deep oxidation beneath the planned pit at Camino Rojo in Zacatecas. ON DEALS AND CORPORATE ISSUES, Riverside Resources updated on 2023 work and plans for 2024 on three properties in Sonora. Silver Valley announced a favorable resolution with the government on its Mexi-Can Sulphate of Potash and Lithium project in Zacatecas. Prime Mining announced a new CEO appointment. Vizsla Silver is to spin out the shares of Vizsla Silver Royalties to its shareholders.  ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUES

  • Raúl García Reimbert, president of the Colegio de Ingenieros de Minas, Metalurgistas y Geólogos de México, stated that according to INEGI (Mexican bureau of statistics), the services related to mining fell by 26.2% in November 2023. Mineral exploration for new projects is practically paralyzed after five years of a no-concessions policy by the actual presidential administration and last year’s mining reforms. The reform poised the SGM as the only entity to explore for new projects that later are to be auctioned, but no budget was allocated for the deed. He also added that “there is no work, staff is laid off, sales of services related to drill bits, exploration supplies, lab technicians, geologists, surveyors, etc.”   

ON EXPLORATION

  • Vortex Metals Inc. provided a summary of 2023 achievements and unveiled its strategy for 2024. In 2023 Vortex completed environmental assessments on its Zaachila and Riqueza Marina projects in Oaxaca, which will be the basis for the reports to be submitted to SEMERNAT (Mexican environmental bureau). “At Riqueza Marina, Vortex completed extensive geological work at the Rhyolite Dome area and, on the copper-rich gossans to the east and west. A total of six trenches measuring 188 meters and yielding 117 rock chip samples were completed”. In 2024 Vortex will continue to engage with the local communities to develop a strong social license that will enable the advance in exploration and potential discovery of a new Cu-Au volcanogenic massive sulfide (VMS) belt in Oaxaca.
  • Aztec Minerals Corp. released initial gold results from three reverse circulation drill holes at its Cervantes project in Sonora. The RC drill program was designed to expand the California gold mineralization in multiple directions. Highlighted drill length intervals comprise 7.6 m @ 0.274 gpt Au; 13.68 m @ 0.338 gpt Au; 30.4 m @ 1.035 gpt Au (including 1.52 m @ 13.8 gpt Au). “Aztec plans to carry out reconnaissance and channel sampling and geologic mapping of the new drill roads at California, and other targets”.
  • Colibri Resource Corp. contracted Geo Digital Imaging de Mexico, S.A. de C.V. to complete a 1,373-hectare HD magnetic survey covering the main targets at El Plomo claims on its EP project in Sonora. The drone aerial survey comprises 312 line-km on 81 lines at 50-m separation and 8 tie-lines at 500-m separation. The survey characteristics are the same that were applied on the adjacent Evelyn target, therefore the blending of the two surveys is expected to be seamless.

ON MINING

  • Orla Mining Ltd. provided an operational update for the fourth quarter of 2023. During the period the company mined 1.86 M tonnes of ore and 802.8 tonnes of waste, for a strip rate of 0.43, stacking 1.75 M tonnes at a rate of 18,998 tpd grading 0.73 gpt Au to produce 34,484 Oz Au. For the full year Camino Rojo produced 121,877 Oz Au. For 2024 the guidance is 110 to 120 K Oz Au production from the Camino Rojo Oxide operation, at cash cost of $625 to $725 per Oz Au and an AISC of $875 to $975 per Oz Au. Nearly half of the $23M Exploration budget in Mexico is to continue exploration activities “on the new discovery below the Camino Rojo sulphide deposit”.
  • First Majestic Silver Corp. announced a total production from its mines in Mexico of 6.6 M AgEq Oz Ag for the fourth quarter of 2023. During the period the company produced 2.61 M Oz Ag, 46,585 Oz Au that add up to 10.25 M Oz Ag, 198,921 Oz Au in the year, or 26.9 M Oz AgEq. Also, during the quarter twelve rigs worked at San Dimas (Durango) and four in Santa Elena (Sonora). At La Encantada, efforts are being made to find more water sources for the plant, as an extended drought is pressing production. For 2024 First Majestic production guidance contemplates 150-167 K Oz Au, 8.6-9.6 M Oz Ag, or 21.1-23.5 M Oz AgEq. At cash cost $13.69-$14.46 per Oz AgEq and an AISC of $19.32-20.68 per Oz AgEq. The company is planning 188,500 m of drilling, with 95,000 m at San Dimas, 59,000 m at Santa Elena and 9,500 m at La Encantada (the rest out of Mexico).
  • Bear Creek Mining Corp. released production figures for the fourth quarter of 2023. At Mercedes, in Sonora, 135,918 tonnes were processed in the period, grading 3.30 gpt Au, recovering 93.6% Au, to produce 13,478 Oz Au, 52.1 K Oz Ag, adding up to 43,860 Oz Au, 167 K Oz Ag in 2023. This quarterly production represents a 47% increase on the previous period and reflects the higher grades mined and increased working faces. Reduction of gold and silver streams of 78% were reached/obtained in the period, improving cash flow.
  • Avino Silver & Gold Mines Ltd. reported Q4 and full year 2023 production results. For the full year the company produced 2.41 M Oz AgEq at its Avino mine in Durango. During the fourth quarter 143.8 K tonnes @ 56 gpt Ag, 0.45 gpt Au, 0.49% Cu were processed, recovering 87% Ag, 70% Au, 84% Ag, to produce 224.7 K Oz Ag, 1,452 Oz Au, 1.32 M Lb Cu, or 558.5 K Oz AgEq. Also, in the quarter a long-term land use agreement was signed on the neighboring La Preciosa project, the prefeasibility study (PFS) on the Oxide Tailings Project in Avino is nearing completion and the dry stacking facility has been fully operational for a year.
  • Torex Gold Resources Inc. provided 2024 operational guidance and a five-year production outlook for the Morelos Complex in Guerrero, which includes the ELG Mine Complex and Media Luna project. For 2024 the company set a guidance of 410 to 460 K Oz AuEq with total cash cost of $900 to $950 per Oz AuEq and an AISC of $1,130 to $1,190 per Oz AuEq. “The mine plan for 2024 includes a full year of production scheduled from ELG, with the open pits starting to wind down mid-year and ELG Underground maintaining consistent levels of production throughout the year. Ore production from Media Luna starts inQ2 and continues to ramp up thereafter”. The five-year production outlook envisages 410 to 460 K Oz AuEq (2024), 425 to 475 K Oz AuEq (2025), 425 to 475 K Oz AuEq (2026), 450 to 500 K Oz AuEq (2027) and 350 to 400 K Oz AuEq (2028). The drilling budget include $15 M for the Media Luna Cluster, $12 M for ELG Underground and $3 M for the Morelos district. Torex has hedged 158 K Oz Au for the year at an average price of $1,972 per Oz.
  • Guanajuato Silver Company Ltd. commenced a relationship with a Mexican mining company “to process a portion of its surface inventory of mineralized material” at Guanajuato Silver’s El Cubo mines complex in Guanajuato. This agreement will utilize excess capacity of El Cubo mill with material that has demonstrated compatible with the processing circuit through comprehensive metallurgical testing.
  • Pan American Silver Corp. reported preliminary production results for Q4 and full-year 2023, including figures from its Mexican operations. At La Colorada, in Zacatecas, 806 K Oz Ag, 400 Oz Au were produced in Q4 2023, completing 4.4 M Oz Ag, 2,300 Oz Au in the year. At Dolores, in Chihuahua, 477 K Oz Ag, 25,400 Oz Au were produced in Q4 to complete 2.2 M Oz Ag, 107,100 Oz Au in the year. For 2024 the production forecast is of 5.3 to 5.7 M Oz Ag, 2,000 Oz Au at La Colorada, at cash cost $11.70 to $14.10 per Oz AgEq and an AISC of $16.00 to $18.50 per Oz AgEq. For Dolores the guidance is of 1.9 to 2.2 M Oz Ag, 65,000 to 75,000 Oz Au at $1,165 to $1,260 per Oz AuEq and an AISC of $1,475 to 1,575 Oz AuEq. Dolores. At La Colorada a 30% improvement in production is expected upon completion of a new ventilation system by mid 2024. At Dolores mining and staking on the heap are expected to conclude on Q3 2024, and then enter into the reclamation phase, with residual leaching for a few years.
  • Argonaut Gold Inc . announced fourth quarter and full year 2023 production results, including figures from its Mexican operations. The company has three mining units: La Colorada in Sonora, and El Castillo and San Agustín in Durango, where 90,247 Oz Au were produced in the year.
  • Fortuna Silver Mines Inc.  reported production results for the fourth quarter and full year 2023, including figures from its operations in Mexico. At the San José mine in Oaxaca, 241 K tonnes were milled at an average rate of 2,678 tpd, averaging 145 gpt Ag, 0.91 gpt Au, recovering 90.8% Ag, 89.6% Au, to produce 1.02 M Oz Ag, 6,345 Oz Au during the Q4. For the full year, San José produced 4.66 M Oz Ag, 28,559 Oz Au. For 2024 the guidance is to produce 3.1 to 3.6 M Oz Ag, 19 to 23 K Oz Au at cash cost $20.3 to $22.3 per Oz AgEq and an AISC of $22.8 to $24.0 per Oz AgEq. Driven by high costs and declining grade, the company is scheduled to exhaust mineral reserves by the end of 2024 and “to review and update a multiyear progressive mine closure and monitoring plan” with a current budget of $27 M.

ON FINANCING

  • Orla Mining Ltd. repaid $25 M towards its revolving credit facility, reducing the balance to $88.4 M. Orla also paid the final $22.8 M installment to Fresnillo plc as part of the layback agreement. At December 31, 2023 Orla had a cash position of $96.6 M and a total debt position of $88.4 M, resulting in a net cash position of $8.2 M (Camino Rojo, Zacatecas).
  • Silver Storm Mining Ltd. is to make a presentation at the 2024 Vancouver Resource Investor Conference on January 21, 2024 (La Parrilla, Durango).
  • GoldGroup Mining Inc. is in the process of arranging convertible debt financing of up to US$400 K of which US$100 K have already been received. “The Convertible Debts will be unsecured, bear interest at 12% per annum, will be repayable 18 (eighteen) months post-closing and will be convertible into common shares of the Company at CAD $0.10 per share at a fixed FX rate of 0.76 USD to CAD at the election of the lender(s)” (Cerro Prieto, Sonora).
  • GR Silver Mining Ltd. proposes to undertake a non-brokered private placement of up to $1.5 M (Plomosas, Sinaloa).
  • Regency Silver Corp. completed the first tranche of $622 K on a previously announced non-brokered private placement of $800 K. “The balance of the private placement is expected to close shortly” (Dios Padre, Sonora).
  • Luca Mining Corp. received a conditional TSX Venture Exchange approval and closed a debt restructuring and debt transaction previously announced. The company closed its debt settlement with Latapi Consultores S.A. de C.V., issuing 17.75 M shares to settle an outstanding debt of CAD$11 M. Luca Mining also completed its debt restructuring with Trafigura Mexico S.A. de C.V. and its affiliate Union Holdings Ltd., converting a US$5.8 M outstanding loan into a non-interest three-year term convertible debenture. Trafigura has also advanced an additional US$2.5 M loan to assist the company in completing the mine optimization program to deliver separate clean copper, zinc and lead concentrates to Trafigura with higher grades and recoveries (Campo Morado, Guerrero).

ON RESOURCES AND DEVELOPMENT

  • Defiance Silver Corp. released results from the 2023 drilling campaign at its San Acacio property in Zacatecas. The drilling demonstrated in-situ vein material remains in place at shallow levels of the mine. Highlighted core length intervals comprise 12.82 m @ 0.36 gpt Au, 223 gpt Ag, 0.2% Pb, 0.4% Zn; 32.32 m @ 0.20 gpt Au, 120 gpt Ag, 0.06% Cu, 0.4% Pb, 1.4% Zn (including 18.91 m @ 0.18 gpt Au, 166 gpt Ag, 0.1% Pb, 0.5% Zn and 6.39 m @ 0.18 gpt Au, 81 gpt Ag, 0.26% Cu, 1.7% Pb, 4.6% Zn); 33.76 m @ 0.31 gpt Au, 105 gpt Ag, 0.07% Cu, 1.0% Pb, 1.8% Zn (including 15.02 m @ 0.60 gpt Au, 162 gpt Ag, 0.14% Cu, 2.1% Pb, 2.5% Zn, which includes 4.47 m @ 0.75 gpt Au, 265 gpt Ag, 0.31% Cu, 5.1% Pb, 3.3% Zn). According to Defiance, the increasing copper grades and the presence of semi-massive to massive sulfide mineralization near surface is encouraging, as Capstone Mining is operating the Cozamin copper mine approximately 3 km away.
  • Impact Silver Corp. announced results from drilling at its Plomosas mine in Chihuahua. Initial drill results from the Tres Amigos section of the mine confirmed high-grade mineralization in the Juarez horizon, near accessible mine workings. Highlighted true width intervals comprise 1.29 m @ 18.2% Zn; 5.70 m @ 23 gpt Ag, 5.3% Pb, 7.9% Zn; 1.50 m @ 64 gpt Ag, 3.1% Pb, 11.9% Zn; 3.77 m @ 19 gpt Ag, 0.8% Pb, 5.0% Zn; 2.40 m @ 17 gpt Ag, 0.4% Pb, 6.0% Zn; 1.50 m @ 12 gpt Ag, 12.4% Pb, 3.3% Zn; 9.24 m @ 6 gpt Ag, 0.4% Pb, 4.0% Zn (including 1.98 m @ 13 gpt Ag, 1.4% Pb, 9.1% Zn, and 1.85m @ 13 gpt Ag, 0.7% Pb, 8.7% Zn); 2.70 m @ 35 gpt Ag, 9.2% Pb, 11.1% Zn; 6.90 m @ 28 gpt Ag, 5.4% Pb, 10.2% Zn; 3.60 m @ 50 gpt Ag, 2.1% Pb, 10.9% Zn.
  • Orla Mining Ltd. completed 6,500 m of diamond drilling at its Camino Rojo Oxide mine in Zacatecas. This near-pit exploration included 2,500 m to confirm oxide mineralization on the Fresnillo plc property (Layback area) north of the pit and 4,000 m of drilling targeting structures controlling deeper levels of oxidation beyond the currently designed pit. Highlighted core length intervals comprise 76 m @ 0.85 gpt Au (including 28 m @ 1.28 gpt Au and 10.27 m @ 1.27 gpt Au); 67 m @ 0.48 gpt Au; 73.5 m @ 0.37 gpt Au; 21 m @ 1.09 gpt Au; 18.7 m @ 1.06 gpt Au (including 4 m @ 4.06 gpt Au); 22.5 m @ 0.92 gpt Au; 67.1 m @ 1.16 gpt Au; 65.1 m @ 0.86 gpt Au; 63 m @ 0.63 gpt Au; 41 m @ 0.49 gpt Au; 21 m @ 0.87 gpt Au.

ON DEALS AND CORPORATE ISSUES

  • Riverside Resources Inc. updated on 2023 work and its outlook for 2024. In Mexico the company is preparing drilling permits to maintain good standing of the properties located in Sonora. On the Ariel porphyry copper property, consolidation of land and proper titling are positioning the company for potential JV’s. At the Union mine, assays of up to 1 Oz Au and 30% of Zn highlight the potential for further expansion. At Cecilia, a large dome complex has already yielded significant intercepts on previous drilling.
  • Silver Valley Metals Corp. announced a favorable resolution of issues relating to its Mexi-Can sulphate of potash and lithium project in Zacatecas. The company reported a favorable ruling regarding two amparos (constitutional appeals) on the effect of the New Mining Law. Also, the government operator of lithium mining, Litio Mx, declined to participate on the development of the Mexi-Can project and Silver Valley is poised to recommence exploration activities.
  • Prime Mining Corp. announced that CEO Daniel Kunz is retiring and Mr. Scott Hicks, EVP, will succeed him (Los Reyes, Sinaloa).
  • Vizsla Silver Corp. intends to spin out the shares of Vizsla Silver Royalties Corp., a wholly owned subsidiary of Vizsla Silver, to the company’s shareholders. The royalty consists of a 2.0% net smelter return (NSR) on certain unencumbered concessions on the Panuco project in Sinaloa, and a 0.5% NSR on certain encumbered concessions on the same project which have a pre-existing 3.0% NSR. “Pursuant to the Spinout, common shares of Vizsla Royalties would be distributed to shareholders of Vizsla Silver. Vizsla Silver is expected to hold approximately a 49% ownership interest in Vizsla Royalties, with the remaining shares of Vizsla Royalties being distributed to shareholders of Vizsla Silver on a pro-rata basis at a time to be determined by the board of directors of Vizsla Silver”.
  • Alamos Gold Inc. is to release fourth quarter and full-year 2023 results after February 21, 2024 (Mulatos, Sonora).

ON SOCIAL RESPONSIBILITY

  • No Relevant News.

On the image below: Specularite-quartz breccia vein on a project of the Sonoran Desert. Picture by Jorge Cirett.

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

/ Gambusino Prospector / Leave a comment

By Jorge Cirett                                             

During the 1st week of the year (January 1st to January 7th, 2024), companies working in Mexico posted 10 news releases. Two companies reported exploration advances on their properties, one announced a financing round, other extended warrants and one more granted stock options. One company released drilling results from its advanced property, one other the amalgamation with a subsidiary and one more the agreement to acquire mining concessions. Two companies announced appointments to their boards. ON MEXICO ISSUES, no relevant news. ON EXPLORATION, in Sonora, Canuc Resources commenced exploration at its San Javier project; Aztec Minerals provided a review and plans on its Cervantes property. ON MINING, no relevant news. ON FINANCING, Silver Wolf is extending warrants, and settled debt with shares. Oroco Resource announced a $1 M non-brokered financing. Bear Creek Mining is granting options to an officer.  ON RESOURCES AND DEVELOPMENT, Silver Storm Mining released drill results from La Parrilla, in Durango. ON DEALS AND CORPORATE ISSUES, Chesapeake Gold completed the amalgamation with one of its subsidiaries. Regency Silver entered in an agreement to acquire two claim groups near the San Dimas mine in Durango. Guanajuato Silver announced the appointment of its chief financial officer, and Luca Mining announced the appointment of its chief financial officer and the resignation of Ralph Shearing, founder.  ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUES

  • No Relevant News.

ON EXPLORATION

  • Canuc Resources Corp. commenced geological mapping and sampling at its San Javier Au-Ag project in Sonora. The exploration program is to center on the largest magnetic-high anomaly, measuring 800 by 400 m, and on a donut shaped anomaly 800 m in diameter south-east of the magnetic high. The magnetic high itself is 300 m west of “where magnetite silver veining comes to surface and where old artisanal mine workings were tunneled on magnetite veins which sampled high to bonanza grades of silver”.
  • Aztec Minerals Corp. provided a review of 2023 and its outlook for 2024. On the Cervantes project in Sonora, road cut sampling, Terraspec SWIR data and detailed geological mapping was completed, along with the drilling of 13 RC holes which expanded the California zone gold target to 1 km by 250 m in size. Assay results for the holes is pending, and exploration work continues in preparation to follow up drilling.

ON MINING

  • No Relevant News.

ON FINANCING

  • Silver Wolf Exploration Ltd. received approval from the TSX for the extension of warrants from December 2023 to December 2024. The company also settled an aggregate debt of $30 K by issuing shares.  (Ana Maria, Durango).
  • Oroco Resource Corp. announced a non-brokered private placement to raise gross proceeds of up to $1 M (Santo Tomás, Sinaloa).
  • Bear Creek Mining Corp. approved the granting of 500 K stock options to its recently appointed chief financial officer (Mercedes, Sonora).

ON RESOURCES AND DEVELOPMENT

  • Silver Storm Mining Ltd. announced further drill results from its La Parrilla mine complex in Durango. Highlighted core length intercepts comprise 6.03 m @ 0.17 gpt Au, 166 gpt Ag, 1.1% Pb, 2.1% Zn (including 1.67 m @ 0.07 gpt Au, 334 gpt Ag, 1.7% Pb, 4.0% Zn); 1.22 m @ 0.79 gpt Au, 171 gpt Ag, 2.8% Pb, 7.9% Zn; 14.62 m @ 0.13 gpt Au, 1,151 gpt Ag, 13.8% Pb, 10.2% Zn (including 9.57 m @ 0.11 gpt Au, 1,35 gpt Ag, 18.4% Pb, 12.0% Zn). The results are from the C460 zone on the Quebradillas mine, “The replacement vein is concordant to bedding in the sediments and mineralization is comprised of pyrite, pyrrhotite, galena, sphalerite, arsenopyrite, acanthite, and freibergite”.

ON DEALS AND CORPORATE ISSUES

  • Chesapeake Gold Corp. has completed a vertical short-form amalgamation with the Company’s wholly-owned subsidiary, American Gold Capital Corp., with the amalgamated company adopting the name of Chesapeake Gold Corp., issuing no securities and the same ticker symbol on the OTCQX. “Following completion of the Amalgamation, the Company now holds Metates Resources directly, which in turn holds the shares of the Company’s Mexican subsidiaries without an intervening US subsidiary.” (Metates, Durango).
  • Regency Silver Corp. entered into an option agreement to acquire two contiguous claim groups near the San Dimas mine in Durango. The claims are located 13 km to the West of the San Dimas mine, covering 3,498 hectares that contain numerous artisanal workings and tunnels. Historical sampling has returned values as high as 17 gpt Au, 7,753 gpt Ag; 37 gpt Au, 2,325 gpt Ag, and grab samples by Regency Silver returned 8.95 gpt Au, 304 gpt Ag; 0.49 gpt Au, 1,084 gpt Ag. Regency has to pay US$50 K on Exchange acceptance, US$50 K in 6 months, issue 1 M common shares and pay back taxes and mining filings before March 25, 2025. “In lieu of a royalty, Regency Silver must also pay a US$1M bonus upon a NI 43-101 resource being published, which estimates the San Dimas Claims contain a minimum of 70 million silver equivalent ounces or 1 million gold ounces in the measured or indicated categories”.
  • Guanajuato Silver Company Ltd. announced the appointment of Danny Lee as chief financial officer (El Cubo, Guanajuato).
  • Luca Mining Corp. appointed Lisa Dea as chief financial officer. Ralph Shearing, the founder of the company, resigned from the Board of Directors (Campo Morado, Guerrero).

ON SOCIAL RESPONSIBILITY

  • No Relevant News.

On the image below: Silicified ridges on a project of the Sonoran Desert. Picture by Jorge Cirett.

The Mining and Exploration News in Mexico: Highlights on the Third Week of December 2023

/ Gambusino Prospector / Leave a comment

By Jorge Cirett                                             

During the 51st week of the year (December 18th to December 24th, 2023), companies working in Mexico posted 28 news releases. Three companies reported exploration advances on their properties, two companies released quarterly reports and one other the successful breakthrough of a major tunnel. In a busy week for financing matters, six companies entered, closed, increased or amended their private placements, one company updated the disclosure on its incentive warrant program, another announced its intention to repurchase up to 10% of its outstanding shares and another one settled a debt with shares.  Two companies released drilling results from their advanced properties and one more the completion of a drilling campaign. Two companies announced a merger, one company announced the rent to purchase agreement on a processing plant, one other provided a summary of yearly activities and plans for 2024. A company sold a subsidiary to a local enterprise while other sold a subsidiary to a foreign one. One company announced a board appointment and one more the results of its AGM. ON MEXICO ISSUES, fossil fuels produce 62% of the energy used by the mining industry in Mexico, and 21% of the water is from underground sources. ON EXPLORATION, in Sonora, Colibri Resource released drilling results from Evelyn; Tocvan Ventures plans a 10,000 m drilling program at Pilar; Riverside Resources reported on field work and rock sampling at Cecilia. ON MINING, Starcore International filed its second quarter 2023 report, GoGold Resources released quarterly-yearly report. Torex Gold completed the tunnel connecting the Limon-Guajes operations with the Media Luna project under the Balsas River. ON FINANCING, Endeavour Silver entered into an agreement to sell up US$60 M in shares in a 25-month period. Heliostar Metals updated the disclosure on the closing of its warrant exercise incentive program. Regency Silver announced a non-brokered private placement (CAD$800 K). Silver Viper is to amend its non-brokered private placement. Alamos Gold is to repurchase up to 10% of its stock. Luca Mining closed a CAD$2 M non-brokered private placement. GR Silver Mining settled a $100 K debt with shares. Canuc Resources closed a CAD$2 M non-brokered private placement. Atacama Copper is to increase its non brokered private placement to $12 M.  ON RESOURCES AND DEVELOPMENT, Sierra Madre Gold and Silver filed a technical report on La Guitarra project, in Estado de Mexico. Pan American Silver presented the results of the PEA on La Colorada Skarn project, in Zacatecas. Aztec Minerals completed an RC drilling program at Cervantes, in Sonora. ON DEALS AND CORPORATE ISSUES, Atacama Copper entered into a business combination agreement with TCP1. Santacruz Silver Mining sold a subsidiary to a Mexican enterprise. Xali Gold Corp. entered into a rent to purchase agreement to sell the San Dieguito de Arriba mill in Nayarit to a Mexican company. Bear Creek Mining and Mag Silver appointed officers. Vizsla Silver provided a summary of its 2023 activities and 2024 plans. Sailfish Royalty entered into a share purchase agreement with CMC Metals for the sale of Sailfish’s Mexican subsidiary controlling the Gavilanes project in Durango. Santacruz Silver Mining held its AGM.  ON SOCIAL RESPONSIBILITY, Capstone Copper published its 2022 sustainability report.

ON MEXICO ISSUES

  • Camimex (Cámara Minera de México) informed that 62% of the energy used by the mining industry in Mexico is produced by fossil fuels, and 21% of the water is from underground sources.

ON EXPLORATION

  • Colibri Resource Corp. announced that the recently completed seventeen-hole 2,200 m reverse circulation drilling program at the Evelyn property in the EP project in Sonora has discovered a new zone of mineralization. The six holes on the new West Sahuaro zone intercepted mineralization, with hole length intercepts of 23 m @ 0.35 gpt Au; 66 m @ 0.273 gpt Au; 6 m @ 0.753 gpt Au; 24m @ 0.148 gpt Au; 26 m @ 0.323 gpt Au (including 5 m @ 0.779 gpt Au); 27 m @ 0.252 gpt Au; 37 m @ 0.195 gpt Au; 4 m @ 1.175 gpt Au; 50 m @ 0.180 gpt Au. West Sahuaro was prioritized based on a gold soil anomaly 500 m in length, a coincident mapped structure and IP geophysical interpretation. Relevant intervals from drilling on the Main Zone comprise 10 m @ 0.242 gpt Au; 21 m @ 0.152 gpt Au; 1 m @ 0.351 gpt Au; 1 m @ 0.967 gpt Au.
  • Tocvan Ventures Corp. informed of plans for a 10,000 m drilling program at its Pilar project in Sonora. The program is focused in resource definition, targeting a maiden mineral resource estimate for late 2024. Depending on market conditions, the program could be extended to 20,000 m to include evaluation of targets areas across Pilar and the earlier stage Picacho project, also in Sonora.
  • Riverside Resources Inc. reported field work and rock sampling from the Cecilia project in Sonora, constructing a model of a composite dome system with superimposed veins. Results from 34 rock samples returned up to 7.3 gpt Au, 144 gpt Ag in the Magallanes target area. Agua Prieta, San Jose, North Breccia, Central and East trends are the main structural corridors, interpreted as the surface expression of a rooted rhyolite dome system, with higher grades at the base. All the information gathered is to be used in target delineation for the planned 2024 drill program.

ON MINING

  • Starcore International Mines Ltd. filed the results for the second quarter ended October 31, 2023. During the period, the San Martin mine in Queretaro milled 58 K tonnes averaging 1.42 gpt Au, 14.8 gpt Ag, recovering 85.2% Au, 48.8% Ag, to produce 2.3 K Oz Au, 13.5 K Oz Ag (2.4 K Oz AuEq), with a mine operating cash cost of $1,690 per Oz AuEq. The operating loss in the quarter was $1.03 M whilst cash and short-term investments were $4.7 M at October 31, 2023.
  • GoGold Resources Inc. announced financial results for the year ending September 30, 2023, with the Parral operations in Chihuahua generating $30 M from the sale of $1.4 M Oz AgEq. During the period 706.9 K Oz Ag, 7,032 Oz Au, 615 tonnes Cu (1.52 M Oz AgEq) were produced. Cash at the end of the period of US$95.3 M.
  • Torex Gold Resources Inc. announced the successful breakthrough of the Guajes tunnel which connects the existing operations on the north side of the Balsas River with the resource base of the Media Luna Cluster on the south side, at its Morelos Complex in Guerrero. Advance rates averaged 7.1 m per day since the start of 2023, and 8 m per day last November, which is impressive, given the 6.5 m high by 6.0 m wide dimensions of the tunnel.

ON FINANCING

  • Endeavour Silver Corp. entered into a sales agreement with a syndicate of agents lead by BMO Capital Markets Corp. pursuant to which the company may, at its discretion and from time to time during the 25-month term of the agreement, sell common shares of the company that add up to US$60 M in aggregate gross proceeds (Terronera, Jalisco).
  • Heliostar Metals Ltd. updated its disclosure regarding the closing of its warrant exercise incentive program. “Capitalized terms used but not defined in this news release have the meanings given to them in the Company’s news release dated December 11, 2023”. An additional 18,000 outstanding warrant were exercised pursuant to the incentive program. A total of 17.6 M common shares were issued upon the exercise of 17.6 M outstanding warrants, providing aggregate gross proceeds of $5.3 M. A total of 5.87 M incentive warrants were issued, and 28.76 M outstanding warrants remain (Ana Paula, Guerrero).
  • Regency Silver Corp. announced a non-brokered private placement to raise up to CAD$800 K (Dios Padre, Sonora).
  • Silver Viper Minerals Corp. intends to amend its non-brokered private placement financing to raise up to $2 M in gross proceeds. “Concurrently with the announcement of the Amended Offering, the Company is terminating its previously announced non-brokered private placement pursuant to the Listed Issuer Financing Exemption (the “LIFE”) of National Instrument 45-106 – Prospectus Exemptions (the “LIFE Offering”). In connection with the termination of the LIFE Offering, the Company is withdrawing the offering document that it filed on December 8, 2023, with respect to the LIFE Offering. Purchasers under the Amended Offering should not rely on such offering document.” (La Virginia, Sonora).
  • Alamos Gold Inc. filed and and received acceptance from the Toronto Stock Exchange on a notice of intention to repurchase for cancellation up to 34.58 M class A common shares (10% of the public float) thorough a Normal Course Issuer Bid from December 24, 2023 to December 23, 2024 (Mulatos, Sonora).
  • Luca Mining Corp. closed the CAD$2 M non-brokered private placement previously announced, raising CAD$2 M in gross proceeds, and reserving a 25% over subscription option on the private placement (Campo Morado, Guerrero).
  • GR Silver Mining Ltd. issued 1.34 M shares to settle and aggregate debt of $100.8 K outstanding as October 31, 2023. Directors and officers of the company participated in the debt settlement transactions, receiving an aggregate of 788.9 K shares to settle a $59.2 K debt (Plomosas, Sinaloa).
  • Canuc Resources Corp. closed a non-brokered private placement financing, raising gross proceeds of CAD$2 M (San Javier, Sonora).
  • Atacama Copper Corp. announced the intention to increase the size of its previously announced brokered private placement for aggregate gross proceeds of up to $12 M. The first tranche has been closed with aggregate gross proceeds of $7 M (Yecora, Sonora).

ON RESOURCES AND DEVELOPMENT

  • Sierra Madre Gold and Silver Ltd. filed a technical report with the previously disclosed mineral resource estimate for the La Guitarra project in Estado de Mexico. The estimate includes 3.84 M tonnes @ 146 gpt Ag, 0.96 gpt Au (220 AgEq) in indicated resources containing 18 M Oz Ag, 118 K Oz Au, and 4.1 M tonnes @ 113 gpt Ag, 0.52 gpt Au (153 gpt AgEq) in inferred resources, containing 20.1 M Oz Ag, 68 K Oz Au.
  • Pan American Silver Corp. released the results of a preliminary economic assessment (PEA) on its La Colorada Skarn project in Zacatecas. The PEA envisions a 50 K tonnes per day (tpd) sub-level cave mining method, accessed by decline ramps and two ventilation shafts. Estimated production for the first ten years is 17.2 M Oz Ag, 427 K tonnes Zn, 218 K tonnes Pb, on recovery rates of 84.8% Ag, 93.7% Zn, 84.3% Pb. The estimated initial capital cost is $2,829 M over a six-year construction period, a payback period of 4.3 years, total life of mine (LOM) of $951 M and a cumulative after-tax cash flow of $5,689 M. The estimated mineral resource is 173.6 M tonnes @ 2.79% Zn, 1.32% Pb, 33 gpt Ag in the indicated category and 103.6 M tonnes @ 2.47% Zn, 1.03% Pb, 33 gpt Ag in the inferred category.
  • Aztec Minerals Corp. completed 13 reverse circulation holes for a total of 1,646 m at its Cervantes project in Sonora. The holes were drilled on the California gold zone target, with step out drilling to expand the zone to the north, west, east and south, where previous drilling has intercepted extensive shallow, wide oxide mineralization. “The gold mineralization at Cervantes is characterized by oxidized and unoxidized stockwork veinlets of A, B, and C types and disseminated sulfide sites, with silicification and phyllic alterations, typical of large porphyry Au hosted deposits in similar geological settings. Potassic alteration is present in places and is associated with sulphide mineralization as well.” Geological logging of the RC chips showed evidence of wide zones of oxidized, strongly altered rocks with multiple veinlets. Results are pending.

ON DEALS AND CORPORATE ISSUES

  • Atacama Copper Corp. has entered into a business combination agreement on December 15, 2023 with TCP1 Corp. and 1000723052 Ontario Corp. “a wholly-owned subsidiary of the Company, pursuant to which the Company will acquire all of the issued and outstanding shares of TCP1 in exchange for common shares of the Company which will result in the reverse takeover of the Company by TCP1.” After the business combination the company will consolidate its share capital on 6 to 1 basis. Prior to the closing of the proposed transaction Atacama Copper shall complete the private placement for gross proceeds of CAD$10 M. The net proceeds are to be used to advance exploration programs with focus on Cristina (Chihuahua) and Yecora (Sonora).
  • Santacruz Silver Mining Ltd. announced the sale of its shares in Santacruz Holdings Ltd., “which has 100% ownership in Impulsora Minera Santacruz, S.A. de C.V., a non-core Mexican subsidiary of the Company, to a private Mexican group” (Zimapan, Hidalgo).
  • Xali Gold Corp. entered into a rent to purchase agreement with Grupo Minero WIYA (A Mexican company) to operate the San Dieguito de Arriba (SDA) plant in Nayarit. WIYA agreed to pay Xali US$150 K per month (of which the first US$150 K were paid in early December 2023) for ten months. Upon completion of paying a total of US$1.5 M within 12 months, WIYA will have the right to own the SDA plant, and the obligation to complete all repairs and permitting to get the SDA plant into operation.  The company will share the profits from the transaction with Magellan Acquisition Corp., as each own 50% of the SDA plant (El Oro, Estado de Mexico).
  • Bear Creek Mining Corp. announced the appointment of Mr. Fernando Ragone as chief financial officer (CFO).
  • Vizsla Silver Corp. provided a summary of its 2023 activities and key objectives for 2024. The company completed over 98,000 m of drilling at Panuco, in Sinaloa, expanding and upgrading mineralization at the Copala and Napoleon areas. “Mineralization at Copala has now been traced over 1,770 metres along strike, ~450 metres down dip, and remains open to the north and southeast”. Notable discoveries include the La Luisa and Molino veins, with La Luisa having been traced for 1,670 m along strike and to 450 m of depth, with an average width of 3.21 m. Key objectives for 2024 include an updated mineral resource estimate in January 2024, a potential royalty spinout, the delivery of a maiden PEA in H1 2024, complete an updated metallurgical testing, complete +65,000 m of resource/discovery drilling and completing a 1,100 line Km EM survey and acquire high-resolution multispectral satellite imagery for the district.
  • Sailfish Royalty Corp. entered into a share purchase option agreement with CMC Metals Ltd. granting CMC the option to acquire 100% of the shares of Swordfish Silver Corp. “Swordfish, through Sailfish de Mexico S.A. de C.V., holds the mineral rights in and to the silver exploration project located in the Municipality of San Dimas, State of Durango, Mexico, known as the Gavilanes property”. CMC reimbursed US$27.4 K to Sailfish for project expenses in 2023. In order to exercise the option, CMC has to pay Sailfish US$500 K before the end of March 2024, US$500 K before the end of March 2025, US$500 K before the end of March 2026 and US$2 M before the end of March 2027; issuing 1 M CMC shares upon acceptance by the TSX of the agreement, $700 K in CMC shares on or before the end of March 2024 and $500 K in shares on or before the end of March 2025; also CMC must incur exploration expenses of C$1 M before the end of March 2025, C$1.5 M before the end of March 2026 and C$2.5 M on or before the end of March 2027.
  • Santacruz Silver Mining Ltd. held its annual general meeting on December 20, 2023 (Zimapan, Hidalgo).
  • Mag Silver Corp. appointed Tom Peregoodoff to the board of directors effective January 1, 2024 (Juanicipio, Zacatecas).

ON SOCIAL RESPONSIBILITY

  • Vizsla Silver Corp. published its inaugural sustainability report. Key performance highlights include: The commissioning of a green house inventory and exploration of options to incorporate on-site renewable energy. Bi-annual health fairs and community health campaigns and achieving one million hours of consecutive work hours without a lost time incident. Preparation of the inaugural sustainability report and the use of a new software platform to track and enhance ESG performance (Panuco, Sinaloa).

On the image below: Silicified ridges on a project of the Sonoran Desert. Picture by Jorge Cirett.

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

/ gambusinoprospectormexico / Leave a comment

hydrothermal breccia with hematite-rich matrix

By Miguel A Heredia

During the 50th week of the year (December 11th to December 17th, 2023), at least 20 press releases were announced by companies working in Mexico, and 1 news published by the media, with seven reporting resources and developments, six disclosing deals and corporate issues, three announcing financing issues, three commenting on Mexican issues, one communicating production results, and one informing on exploration results. ON MEXICO ISSUES, Personnel from the Attorney General’s Office of the State of Coahuila announced that they will begin the search and recovery process for the bodies of the 10 miners who were trapped in the El Pinabete coal mine on August 3, 2022, located in Sabinas, Coahuila. Almaden announced that it delivered to the Mexican government a request for consultations in accordance with the comprehensive and progressive agreement for Trans-Pacific Partnership relating to an investment dispute with Mexico. Gold Resource, Vizsla Silver, Prime Mining, and Kootenay Silver reported the best drilling intercepts in Mexico on the second week of December, 2023. ON EXPLORATION, In Baja California Sur, King announced that the letter of intent (Oct 18, 2023) to acquire 50% of the Las Misiones project in Baja California Sur has lapsed and the Company will not be pursuing the project  at this time. ON MINING, Guanajuato Silver reported Mid-Q4, 2023 production results from their Mexican operations. ON FINANCING Argonaut closed its previously announced CAD $85M bought deal public offering (El Castillo mine, Durango). Heliostar completed its previously announced warrant exercise incentive program for gross proceeds of $5,274,463.20 (Ana Paula property, Guerrero).  Tocvan closed the second tranche of its previously announced non-brokered private placement for gross proceeds of $306,150 (Pilar project, Sonora). ON RESOURCES AND DEVELOPMENT, Fortuna Silver provided an exploration update on its San Jose mine, Oaxaca. Gold Resource reported the results of one of its recent step-out drill holes at Don David mine, Oaxaca.  Tocvan released trench channel sample results from its Pilar project, Sonora. Prime reported expansion drill results from its ongoing 60,000m 2023 drilling program at its Los Reyes project, Sinaloa. Vizsla released results from 15 holes from its flagship Panuco project, Sinaloa. Kootenay announced results from the last two holes of the 2023 drill program at its Columba project, Chihuahua. Minera Alamos announced that it filed on SEDAR an independent Technical Report and estimate of the Mineral Resource for its Santana mine in Sonora. ON DEALS AND CORPORATE ISSUES, Coeur appointed a new member to its Board of Directors (Palmarejo mine, Chihuahua). Defiance reported results of its annual general meeting of shareholders (San Acacio project, Zacatecas). Heliostar announced management changes and additions to its Board (Ana Paula project, Guerrero). Monumental appointed a new member to its Board of Directors (Jemi HREE project, Coahuila). Minera Alamos reported results from its annual general meeting of shareholders (Santana mine, Sonora). Almaden granted stock options to Directors, officers, and Employees of the company (San Pedro project, Jalisco). ON SOCIAL RESPONSIBILITY, No relevant news.

ON MEXICO ISSUE

  • Personnel from the Attorney General’s Office of the State of Coahuila announced that they will begin the search and recovery process for the bodies of the 10 miners who were trapped in the El Pinabete coal mine on August 3, 2022, located in Sabinas, Coahuila. Almost 500 days after the tragedy that cost the lives of 10 miners, the personnel responsible for the search and recovery tasks safely reached the galleries of the El Pinabete mine.
  • Almaden Minerals Ltd., announced that it delivered to the Mexican government a request for consultations in accordance with the comprehensive and progressive agreement for Trans-Pacific Partnership (CPTTP) relating to an investment dispute with Mexico. “The investment dispute arises out of certain acts and omissions of Mexico in breach of the CPTPP relating to the Company’s investment in the Ixtaca Gold-Silver Project. The Company has suffered substantial harm arising out of Mexico’s conduct in breach of its investment protection obligations under the CPTPP, including (without limitation):  the Mexican Ministry of Economy’s (Economia) declaration that the Project’s mineral titles were void; Economia’s reassessment of the original applications for the mineral titles holding them to be deficient and unfeasible, contradicting the position previously adopted by it, and violating the Company and its subsidiary’s right to amend or supplement the mineral title applications; and the Mexican Secretariat of Environment and Natural Resources’ (Secretaría del Medio Ambiente y Recursos Naturales, SEMARNAT) delay in issuance and ultimate refusal to issue the Project’s environmental permit (Manifiesto de Impacto Ambiental)”. The Company confirms that it is taking all necessary actions to preserve its rights and protect its investments in Mexico.
  • Gold Resource Corporation, Vizsla Silver Corp., Prime Mining Corp., and Kootenay Silver Inc., reported their best drilling intercepts in Mexico on the third week of November, 2023. Details are shown in the table below:

ON EXPLORATION

  • King Global Ventures Inc., announced that the letter of intent (Oct 18, 2023) to acquire 50% of the Las Misiones project in Baja California Sur has lapsed and the Company will not be pursuing the project  at this time.

ON MINING

  • Guanajuato Silver Company Ltd., reported Mid-Q4, 2023 production results from their Mexican operations. Results from October to the end of November are shown by mine in the table below:

ON FINANCING

  • Argonaut Gold Inc., closed its previously announced bought deal public offering of 223,685,000 common shares of the company at a price of CAD $0.38 for gross proceeds of CAD $85M. Part of the gross proceeds will be used for working capital purposes (El Castillo mine, Durango).
  • Heliostar Metals Ltd., completed its previously announced warrant exercise incentive program. A total of 17,581,544 common shares in the capital of the company were issued upon the exercise of 17,581,544 previously outstanding share purchase warrants, providing aggregate gross proceeds of $5,274,463.20 to the company. The proceeds of the incentive program will be used for exploration and development of the Ana Paula Project and for working capital purposes.  
  • Tocvan Ventures Corp., closed the second tranche of its previously announced non-brokered private placement. It consisted of the issuance of an aggregate of 680,333 units at a price of $0.45 per unit, for gross proceeds of $306,150. The proceeds of the raise will go towards the advancement of the Pilar Au-Ag project in Sonora.

ON RESOURCES AND DEVELOPMENT

  • Fortuna Silver Mines Inc., provided an exploration update on its San Jose mine, Oaxaca. It reported results from the drilling program at Jessi Vein. Drilling highlights (true widths reported) include holes SJOM-1357 with 1.8 g/t Au and 60 g/t Ag (204 g/t AgEq) over 7.1m; hole SJOM-1366A with 1.58 g/t Au and 195 g/t Ag (321 g/t AgEq) over 0.2m, plus 0.78 g/t Au and 91 g/t Ag (153 g/t AgEq) over 1.5m, plus 0.75 g/t Au and 102 g/t Ag (162 g/t AgEq) over 0.4m, plus 0.70 g/t Au and 96 g/t Ag (152 g/t AgEq) over 0.4m, plus 1.22 g/t Au and 161 g/t Ag (258 g/t AgEq) over 1m; hole SJO-1417 with 4.61 g/t Au and 489 g/t Ag (858 g/t AgEq) over 0.5m, plus 1.40 g/t Au and 140 g/t Ag (252 g/t AgEq) over 0.6m; hole SJOM-1418 with 1.13 g/t Au and 95 g/t Ag (185 g/t AgEq) over 0.8m; hole SJOM-1428 with 2.48 g/t Au and 347 g/t Ag (545 g/t AgEq) over 17m, including  6.26 g/t Au and 620 g/t Ag (1,121 g/t AgEq) over 0.4m, plus 1.98 g/t Au and 307 g/t Ag (465 g/t AgEq) over 0.3m, plus 11.27 g/t Au and 1,344 g/t Ag (2,246 g/t AgEq) over 0.5m, plus 11.07 g/t Au and 1,137 g/t Ag (2,023 g/t AgEq) over 0.5m, plus 2.5 g/t Au and 314 g/t Ag (514 g/t AgEq) over 0.3m, plus 9.42 g/t Au and 774 g/t Ag (1,528 g/t AgEq) over 0.2m, plus 32 g/t Au and 5,905 g/t Ag (8,465 g/t AgEq) over 0.5m; hole SJO-1430 with 0.61 g/t Au and 84 g/t Ag (133 g/t AgEq) over 0.9m, plus 8.26 g/t Au and 770 g/t Ag (1,431 g/t AgEq) over 1.1m, plus 0.7 g/t Au and 90 g/t Ag (146 g/t AgEq) over 1.7m, plus 1.25 g/t Au and 150 g/t Ag (250 g/t AgEq) over 4m, plus 2.11 g/t Au and 170 g/t Ag (339 g/t AgEq) over 0.3m; and hole SJO-1431 with 5.38 g/t Au and 576 g/t Ag (1,006 g/t AgEq) over 0.3m, plus 1.02 g/t Au and 114 g/t Ag (195 g/t AgEq) over 5.2m, including 7.16 g/t Au and 838 g/t Ag (1,411 g/t AgEq) over 0.2m, plus 1.18 g/t Au and 146 g/t Ag (240 g/t AgEq) over 0.2m, plus 1.45 g/t Au and 147 g/t Ag (263 g/t AgEq) over 0.4m, plus 1.29 g/t Au and 136 g/t Ag (239 g/t AgEq) over 0.3m
  • Gold Resource Corporation reported the results of one of its recent step-out drill holes at Don David mine, Oaxaca. This program will consist of 34,000m in 150 holes. Assays detail of hole 523136 are shown in the table below:

“The exceptional width and grade appears to occur at the confluence of two veins (Sandy 1 and Sandy 2) that are part of the Gloria and Three sisters vein arrays in the upper portion of the Mine, located approximately 250 meters below surface”.

  • Tocvan Ventures Corp., released channel sample results from four trenches cut at its Pilar project, Sonora. Highlights include TR-2023-02 with 1.87 g/t Au and 9 g/t Ag over 22m; and TR-2023-03 with 1.88 g/t Au and 8 g/t Ag over 14m, including 3.65 g/t Au and 17 g/t Ag over 6m.
  • Prime Mining Corp., reported expansion drill results from its ongoing 60,000m 2023 drilling program at its Los Reyes project, Sinaloa. The company drilled 10 holes at Central-Noche Buena Area and 3 holes at Central-San Miguel East Area. At Central-Noche Buena Area, drilling highlights (true widths reported) include holes 23NB-51 with 3.36 g/t Au and 12 g/t Ag (3.51 g/t AuEq) over 4.97m, including 2.70 g/t Au and 409 g/t Ag (8 g/t AuEq) over 2.56m; hole 23NB-53 with 1.62 g/t Au and 169 g/t Ag (3.81 g/t AuEq) over 2.56m, including 2.77 g/t Au and 420 g/t Ag (8.21 g/t AuEq) over 0.97m, plus 0.27 g/t Au and 81 g/t Ag (1.32 g/t AuEq) over 3.28m, plus 0.42 g/t Au and 65 g/t Ag (1.26 g/t AuEq) over 7.49m; and hole 23NB-52 with 0.45 g/t Au and 60 g/t Ag (1.23 g/t AuEq) over 8.40m, including 1.25 g/t Au and 155 g/t Ag (3.25 g/t AuEq) over 1.55m. At Central-San Miguel East Area, drilling highlights include holes 23SME-37 with 0.55 g/t Au and 60 g/t Ag (1.33 g/t AuEq) over 4.40m, including 2.03 g/t Au and 48 g/t Ag (2.65 g/t AuEq) over 0.65m; and hole 23SME-34 with 0.99 g/t Au and 96 g/t Ag (2.23 g/t AuEq) over 1.40m, including 0.79 g/t Au and 4 g/t Ag (0.85 g/t AuEq) over 5.85m.
  • Vizsla Silver Corp., released results from 15 holes from its flagship Panuco project, Sinaloa, targeting La Luisa Vein located about 700m west of the Napoleon Area resource. Drilling highlights (true widths reported)  include holes NP-23-419 with 58 g/t Ag, 7.74 g/t Au, 0.7% Pb, and 1.4% Zn (650 g/t AgEq) over 3.25m, 50 g/t Ag, 16.74 g/t Au, 0.3% Pb, and 1% Zn (1,220 g/t AgEq) over 0.62m; hole NP-23-397 with 32 g/t Ag, 1.44 g/t Au, 0.2% Pb, and 2.5% Zn (221 g/t AgEq) over 8.70m, including 77 g/t Ag, 6.55 g/t Au, 0.5% Pb, and 1.3% Zn (577 g/t AgEq) over 1.26m, plus 137 g/t Ag, 1.77 g/t Au, 0.4% Pb, and 5.4% Zn (455 g/t AgEq) over 3.55m, including 408 g/t Ag, 2.64 g/t Au, 0.3% Pb, and 18.2% Zn (1,228 g/t AgEq) over 0.70m; hole NP-23-420 with 95 g/t Ag, 6.97 g/t Au, 0.1% Pb, and 0.2% Zn (568 g/t AgEq) over 2.8m, including 116 g/t Ag, 11.5 g/t Au, 0.05% Pb, and 0.07% Zn (888 g/t AgEq) over 1.90; and hole NP-23-401 with 191 g/t Ag, 0.27 g/t Au, 0.04% Pb, and 0.5% Zn (214 g/t AgEq) over 0.90m, plus 386 g/t Ag, 1.43 g/t Au, 0.9% Pb, and 1.7% Zn (542 g/t AgEq) over 1.35m. “Recently completed shallow drilling has confirmed the northern continuation of the Luisa structure, expanding its potential strike-length to 1,670 metres”.  
  • Kootenay Silver Inc., announced results from the last two holes of the 2023 drill program at its Columba project, Chihuahua, which consisted of 12 holes for a total of 3,052.8m designed to extend known mineralization on the “D Vein” target area. Selected highlights for drill hole CDH-23-146 include 501 g/t Ag, 0.3% Pb, and 0.7%Zn over 10.26m, including 2,123 g/t Ag, 1.3% Pb, and 2.2% Zn over 1.54m, including 4,120 g/t Ag, 3.4% Pb, 2.8% Zn over 0.54m. Selected highlights for drill hole CDH-23-147 include 532 g/t Ag, 0.2% Pb, and 0.7% Zn over 8.19m, including 914 g/t Ag, 0.3% Pb, and 0.7% Zn over 1m, plus 777 g/t Ag, 0.6% Pb, and o.7% Zn over 1m. “The current drilling program is designed to extend the D-Vein in preparation of a wider spaced follow up program aimed to delineate a maiden resource expected in late 2024”.
  • Minera Alamos Inc., announced that it filed on SEDAR the results of the independent Technical Report and estimate of the Mineral Resource for its Santana mine in Sonora.

ON DEALS AND CORPORATE ISSUES

  • Coeur Mining Inc., appointed a new member to its Board of Directors (Palmarejo mine, Chihuahua).
  • Defiance Silver Corp., reported results of its annual general meeting of shareholders (San Acacio project, Zacatecas).
  • Heliostar Metals Limited announced management changes and additions to its Board. The company appointed to its non-executive director with immediately effect to its Board of Directors, and Mr. Charles Funk will add the title and role of President to his current title and responsibilities as Chief Executive Officer (Ana Paula project, Guerrero).
  • Monumental Energy Corp., appointed a new member to its Board of Directors (Jemi HREE project, Coahuila).
  • Minera Alamos Inc., reported results from its annual general meeting of shareholders (Santana mine, Sonora).
  • Almadex Minerals Ltd., granted stock options to Directors, officers, and Employees of the company to purchase an aggregate 1,075,000 common shares in the capital of the Company at an exercise price of $0.21 per share expiring on July 10th, 2028 (San Pedro project, Jalisco).

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, hydrothermal breccia with hematite-rich matrix in an epithermal vein system in a project in Zacatecas, Mexico. Photo by Miguel A Heredia.