The Mining and Exploration News in Mexico: Highlights on the Third Week of January, 2019.

Kaolin in a Hg prospect

By Miguel A Heredia

During the third week of the year (January 14th to January 20th, 2019), at least 31 press releases were announced by companies working in Mexico, with thirteen communicating production results, eight informing on exploration results, seven disclosing deals and corporate issues, one announcing financing rounds, one discussing Mexican issues, and one reporting a feasibility study for mine expansion on its property. ON MEXICO ISSUES, Napoleon Gomez Urrutia, mining leader and senator of the MORENA party, declared that is ready to go over the mining companies that do not pay enough taxes, pollute the environment and have too much ground in mining concessions.  ON EXPLORATION, In Sonora, San Marco, Silver Viper, Mexus, Sonoro, and Ridgestone announced drilling results from their Chunibas, La Virginia, Santa Elena, Cerro Caliche, and Rebeico properties respectively. In Chihuahua, Mammoth posted a technical report on its 2017-2018 drilling program at its Tenoriba project, and VVC released drilling results from its Samalayuca project.  In Sinaloa, Goldplay outlined 5 new exploration targets at its San Marcial project.  ON MINING, Alamos Gold, Alio, Premier, Coeur, GoGold, McEwen, Excellon, Avino, Hecla, Goldcorp, Fortuna and First Majestic reported Q4 and full year 2018 production results from their Mexican operations. Mako Mining reported that are pumping water from its Taunus pit at La Trinidad mine in Sinaloa and expect to commence mining by month end.  Great Panther provided 2019 production and cost guidance for their Mexican operations. ON FINANCING, Impact closed the second and final tranche of a non-brokered private placement for $1.19M for a total raise of $1.7M.  ON RESOURCES AND DEVELOPMENT, Leagold announced a feasibility study for the expansion of its Los Filos mine in Guerrero. ON DEALS AND CORPORATE ISSUES, Goldplay announced the listing of its shares on the Frankfurt Stock Exchange (San Marcial, Sinaloa). Mako reported that now holds a 100% interest in the La Trinidad mine in Sinaloa. SilverCrest announced executive appointments (Las Chispas project, Sonora). Oroco provided an update on its option to acquire an additional interest in its Santo Tomas project in Sinaloa. Prize provided an update about an order on regulatory matters issued by the Alberta Securities Commission (Manto Negro project, Coahuila). Newmont and Goldcorp entered into a definitive agreement to create the world´s leading gold company.  Minera Alamos launched new website (Santana project, Sonora).

ON MEXICO ISSUES

  • Napoleon Gomez Urrutia, mining leader and senator of the MORENA party, declared that is ready to go over the mining companies that do not pay enough taxes, pollute the environment and have too ground in mineral concessions. The mining leader is reviewing mineral concessions and said that mining companies should contribute to the government with more revenues. He also said that the Mining Law of Mexico has to be regulated in accordance with the interests of the country. “We are looking at the cancellation terms for a concession and its extension, because 50, 100 years is too long,” he explained. The senator also mentioned not to have in mind any particular tax for companies.

ON EXPLORATION

  • San Marco Resources Inc., released phase 1 drilling results from its Chunibas project in Sonora, where, under a JV option agreement with a subsidiary of Antofagasta plc., the company is exploring several Cu-Ag rich mineralized targets mapped on surface. Drilling carried out at Chunibas project consisted of 1,640m in 7 shallow drill holes and tested 2km of the NW-SE striking mineralized corridor with 5 drill holes, and 400m of a NE-SW section perpendicular to the  corridor with 2 drill holes. The drilling program has confirmed the existence of a typical Cu-Ag manto-type system. Highlights include hole CHD18-05 with 7.5m of 0.1% Cu and 2 g/t Ag and 22m of 0.05% Cu and 0.7 g/t Ag; hole CHD18-06 with 3m of 0.08% Cu and 0.6 g/t Ag; and hole CHD18-07 with 6m of 0.06% Cu and 0.3 g/t Ag.
  • Silver Viper Minerals Corp., reported second batch drilling results from its la Virginia project in Sonora. Significant results are at El Rubi Zone in hole LV18-201 with 13.3m (6m TW) with 3.16 g/t Au and 228 g/t Ag (6.42 g/t AuEq), including 4m (1.8m TW) of 3.75 g/t Au and 258 g/t Ag (7.43 g/t AuEq), and including 1m (0.45m TW) of 8.30 g/t Au and 782 g/t Ag (19.47 g/t AuEq); hole LV18-200 with 12m (9m TW) of 1.52 g/t Au and 133 g/t Ag (3.42 g/t AuEq), including 2m (1.5m TW) of 5.51 g/t Au and 537 g/t Ag (13.18 g/t AuEq); and hole LV18-203 with 10m (5m TW) of 1.1 g/t Au and 97 g/t Ag (2.48 g/t AuEq), and 12m (6m TW) of 1.37 g/t Au and 81 g/t Ag (2.53 g/t AuEq), including 1m (0. 5m TW) of 13.20 g/t Au and 780 g/t Ag (24.34 g/t AuEq). A third and final batch of results are pending and will be released once the assays are received.
  • Mexus Gold US, announced that the 1st phase of drilling at its Santa Elena project in Sonora has been completed. Final results are expected to arrive in February 2019. Until now, “Hole 7 is the best evidence of high-grade gold at 9.89 g/t Au with an attractive width of 5.3 meters and an overall average of 3.12 g/t Au”.
  • Sonoro Metals Corp., completed 45 RC holes totaling 4,604m at its Cerro Caliche project in Sonora, confirming a luster of eight northwest trending gold-dominant structures surrounded by parallel sheeted veinlets and stockwork veinlets. Significant drill intersections are Highlights from the final 14 holes include 12.19m of 11.2 g/t Au and 5.9 g/t Ag (11.3 g/t AuEq); 4.57m of 4.67 g/t Au and 2 g/t Ag (4.69 g/t AuEq); and 12.19m of 0.82 g/t Au and 8.5 g/t Ag (0.95 g/t AuEq).
  • Ridgestone Mining Inc., released final assay results from an initial drill program conducted at its Rebeico project in Sonora. Significant intersections are in hole 18REB6 with 3.25m of 8.31 g/t Au and 2.41% Cu, including 0.5m of 6.95 g/t Au and 1.31% Cu, and 1m of 17.7 g/t Au and 5.95% Cu, and 1m of 5.59 g/t Au and 0.83% Cu; and hole 18REB10 with 1.5m of 36.1 g/t Au and 1.22 g/t Ag, and 1.46 g/t Au and 0.07% Cu.
  • Mammoth Resources Corp., posted an internal technical report based on 13 holes totaling 2,700m drilled during its 2017-2018 drilling program conducted on its Tenoriba project in Chihuahua. Some of the conclusions are: At El Moreno area, feldspar porphyry intrusive rocks were intersected displaying porphyry –style mineralization including disseminated sulphides and complex stockworks-sulphide rich veinlets. Hole TEN 17-02 intersected 80m of 0.17 g/t AuEq: Phyllic-pyrite alteration was also identified in drill core and consists of illite-tourmaline and dickite; K-feldspar flooding was observed at deeper intervals and the presence of 7.2m of 3.59% Cu in hole TEN 17-03. At the Carneritos area, mineralization identified is more typical of high sulphidation and consists of narrow pyrite rich veinlets in a stockwork texture associated with silica, dickite and local patchy vuggy silica alteration. Hole TEN 17-06 intersected 126.08m of 0.52 g/t AuEq, including 25m of 1.21 g/t AuEq.
  • VVC Exploration Corporation, announced the results for the last 11 drill holes from its Samalayuca project in Chihuahua. The most significant intersections are in hole SC18-056 with 19.65m of 0.32% Cu; hole SC18-057 with 28m of 0.79% Cu; and hole SC18-058 with 5m of 0.55% Cu. “The 2017/18 drilling program confirmed significant, near surface, copper mineralization over an approximate 5km strike length.”
  • Goldplay Exploration Ltd., outlined with soil and rock sampling five new exploration targets at its San Marcial project in Sinaloa. Faisanes, Cabañas, Nava, Pedregal, and Chachalaca targets have been prioritized for follow up exploration and detailed geological mapping in H1, 2019. “The Cabañas and Faisanes targets demonstrate very similar geology to the historic resource, while the Nava and Pedregal targets indicate a NE-SW trending structural setting, superimposed on a volcanic package of rhyolites and andesites cut by dioritic dykes. The Chachalaca trend is interpreted as a NW-SE trending structural setting, with geology dominated by rhyolites and andesites”.

ON MINING

  • Alamos Gold Inc., reported its Q4 and annual 2018 production results from their Mulatos and El Chanate mines in Sonora. Production from Mulatos in Q4 was 35.6K Oz Au for a full year 2018 of 175.5K Oz Au. At El Chanate mine, Alamos produced 35.6K Oz Au in Q4 2018 for an annual 2018 production of 43.7K Oz Au. Alamos Gold expects to produce between 150K-160K Oz Au in 2019. Mining activities ceased at El Chanate mine in Q4 2018 and has transitioned to residual leaching which will result in a declining rate of production through 2019.
  • Alio Gold Inc., announced its Q4 and full year 2018 production results from its San Francisco Mine in Sonora. At its San Francisco mine the company achieved a Q4 production of 10.3K Oz Au for a full year 2018 production of 54K Oz Au. The company reported that “there are sufficient stockpiles to operate at full capacity throughout 2019 (as at July 1, 2018, the low-grade stockpile consisted of approximately 7.2 M tonnes of 0.26 g/t gold material (60.2K contained Oz Au). Gold production at San Francisco mine is expected to remain consistent with current production levels for at least the first half of 2019”.
  • Premier Gold Mines Limited, reported its Q4 and full year 2018 production results from its Mercedes mine in Sonora. In Q4, the company produced 22.5K Oz Au and 119K Oz Ag for an annual 2018 production of 68.7K Oz Au and 309.2K Oz Ag.
  • Coeur Mining Inc., released its Q4 and full 2018 production results from its Palmarejo mine in Chihuahua. In Q4, Coeur milled 378,389 tonnes of 2.49 g/t Au and 185 g/t Ag to produce 31.2K Oz Au and 1.9M Oz Ag with metallurgical recoveries of 97.6% and 84% respectively. For the full year 2018, the company milled 1,382,471 tonnes of 3.1 g/t Au and 202 g/t Ag to produce 122.7K Oz Au and 7.5M Oz Ag with metallurgical recoveries of 88.9% and 83.8% respectively.
  • GoGold Resources Inc, announced its Q4 2018 production results from its Parral operation in Chihuahua. In Q4, GoGold produced 1,828 Oz Au and 168K Oz Ag for a total of 325K Oz AgEq.
  • Mc Ewen Mining Inc., presented its Q4 and annual 2018 production results from its El Gallo mine in Sinaloa. The company produced 5.6K Oz AuEq in Q4 for a total full 2018 production of 39.1K Oz AuEq. By the end of Q2 2018, mining and crushing activities ceased at El Gallo mine and were followed by residual heap leaching. Closure, reclamation, and residual heap leaching activities are ongoing and will continue for several years.
  • Excellon Resources Inc., announced its Q4 and annual 2018 production results from its Platosa mine in Durango. Excellon milled 16,570 tonnes of 556 g/t Ag, 4.9% Pb and 6% Zn in Q4 to produce 274.3M Oz Ag, 1.5M Lb Pb, and 1.8M Lb Zn. In the full 2018 year, Excellon milled 57,475 tonnes of 488 g/t Ag, 4.8% Pb, and 6.9% Zn to produce 917.7M Oz Ag, 5.4M Lb Pb, and 7.9M Lb Zn.
  • Avino Silver & Gold Mines Ltd., presented its Q4 and full year 2018 production results from their Avino, San Gonzalo and Above Ground Stockpiles in Durango. In Q4, the company milled 189,574 consolidated tonnes of 64 g/t Ag, 0.5 g/t Au, 0.44% Cu to produce 288.6K Oz Ag, 1,973 Oz Au, and 1.4M Lb Cu with metallurgical recoveries of 75%, 64% and 72% respectively. For the full 2018 year, Avino milled 708.7K tonnes of 73 g/t Ag, 0.53 g/t Au, and 0.43% Cu to produce 1.3M Oz Ag, 8K Oz Au, and 4.8M Lb Cu with metallurgical recoveries of 76%, 65%, and 72% respectively.
  • Hecla Mining Company, announced its Q4 and annual 2018 production results from its San Sebastian mine in Durango. Hecla produced 443.3K Oz Ag and 2,928 Oz Au in Q4 and 2M Oz Ag and 15K Oz Au in the full 2018 year. The mill operated at an average of 429tpd in 2018.
  • Goldcorp Inc., released its Q4 and annual 2018 production results from their operations. Goldcorp did not report results by mine but produced 630K Oz Au in Q4 and 2.3M Oz Au in the full 2018 year.
  • Fortuna Silver Mines Inc., reported its Q4 and annual 2018 production results from its San Jose mine in Oaxaca. Fortuna milled 256,181 tonnes of 1.58 g/t Au and 230 g/t Ag in Q4 to produce 11.8K Oz Au and 1.7M Oz Ag. In the full 2018 year, Fortuna milled 534,773 tonnes of 1.75 g/t Au and 260 g/t Ag to produce 53.5K Oz Au and 8M Oz Ag.
  • First Majestic Silver Corp., presented its mine by mine Q4 2018 production results from their Mexican operations. The table below shows production details for each mine:

  • Mako Mining Corp., reported that are still in the process of dewatering the Taunus pit at its La Trinidad mine in Sinaloa and has already reached bench -56, where there are over 57M tonnes of blasted rock of 1.35 g/t Au. The company expects to commence mining by month end, at which time crushing and stacking on the leach pad can once again resume. There is an estimated of 30K Oz of recoverable Au left in the Taunus pit. The Company is still evaluating the safest and most effective mine plan to recover the remaining Oz Au.
  • Great Panther Silver Limited, provided 2019 production and cost guidance for their two Mexican operations: Topia in Durango and the Guanajuato mine complex which includes the San Ignacio and the Guanajuato mines. Great Panther expects to produce in 2019 over 3.7-4.0 M AgEq. The company also has taken the step of realigning their Mexican operations to reduce cost and maximize mine operating cash-flow, with a modest reduction in their production ounces.

ON FINANCING

 

  • Impact Silver Corp., closed the second and final tranche of a non-brokered private placement for $1.19M for a total raise of $1.7M. Gross proceeds will be used to explore its Zacualpan project in State of Mexico for additional potential targets, to improve the efficiency at its Guadalupe production mill, and for general working capital purposes.

ON RESOURCES AND DEVELOPMENT

  • Leagold Mining Corporation, announced a feasibility study for the expansion of its Los Filos mine in Guerrero. Highlights of the FS are: production of 3.3M Oz Au over a 10-year mine life (2019-2028) at an average AISC of $795; and proven and probable mineral reserves of 111.3M tonnes of 1.23 g/t Au containing a total of 4.5M Oz Au. Post expansion (2021 onwards) include an average annual production of 350K Oz Au at AISC of $759/Oz and an average annual production exceeding 400K Oz Au from 2012 to 2013.

ON DEALS AND CORPORATE ISSUES

  • Goldplay Exploration Ltd, announced the listing of its shares on the Frankfurt Stock Exchange under the symbol GPE effective January 15, 2019 (San Marcial project, Sinaloa).
  • Mako Mining Corp., completed the acquisition of Golden Reign Resources Ltd., from Marlin Gold Mining Ltd., and now holds a 100% interest in the la Trinidad mine in Sinaloa.
  • SilverCrest Metals Inc., announced the appointment of its VP Exploration and Technical Services and its Executive VP Business Development (Las Chispas project, Sonora).
  • Oroco Resource Corp., engaged an independent QP to prepare a technical report on its Santo Tomas property in Sinaloa. It allows Oroco to acquire an additional interest on the property.
  • Prize Mining Corporation, provided an update about the order issued by the Alberta Securities Commission on December 21, 2019, requiring that all trading in securities of Prize cease and that Prize must cease trading in all securities. Prize applied for a further adjournment and now the Alberta Securities Commission issued a variation order dated January 14, 2019 to adjourn the hearing to February 1, 2019.
  • Newmont Mining Corporation & Goldcorp Inc., entered into a definitive agreement to form Newmont Goldcorp and create the world´s leading gold company. Newmont will acquire all of the outstanding common shares of Goldcorp in a stock-by-stock transaction valued in $10B. “Newmont Goldcorp’s Reserves and Resources will represent the largest in the gold sector and will be located in favorable mining jurisdictions in the Americas, Australia and Ghana, representing approximately 75 percent, 15 percent and 10 percent, respectively”. The Boards of Directors of both companies have unanimously approved the transaction, which is expected to be closed in Q2, 2019.
  • Minera Alamos Inc., launched a new brand and improved website.

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, kaolin in a Hg prospect in San Luis Potosi, Mexico.  Photo by Miguel A Heredia.

The Mining and Exploration News in Mexico: Highlights on the Second Week of January, 2019


Quartz-sulfide sheeted veinlets with silicified halos in argillitized fragmental tuff on a project in Jalisco

By Jorge Cirett

During the 2nd week of the year (January 7th to January 13th, 2019), at least 26 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, The government stressed the need to create a new legal framework to standardize the safety, health and protect workers and the environment. ON EXPLORATION, In Sonora, San Marco confirmed the presence of a porphyry copper system at El Espiritu; Silver Viper released unpublished historical drill results from its La Virginia property. In Chihuahua, Sable Resources summarized its 2018 program on Margarita, and 2019 drill plans for Margarita and Vinata projects; Kootenay reported new surface sample results from the Columba project. ON MINING, Consolidated Zinc, Great Panther, Endeavour Silver, New Gold, Torex Gold and Capstone presented Q4 2018 production results. Sierra Metals is increasing production at Bolivar, Chihuahua. US Antimony is completing its plant to process Los Juarez ore. ON FINANCING, Silver One, Gainey Capital and SilverCrest completed non-brokered private placements for gross proceeds of C$624 K, $750 K and C$292 K. respectively. ON RESOURCES AND DEVELOPMENT, Oceanus informed on El Tigre, Sonora,  2018 exploration, and plans for 2019. SilverCrest released further high-grade in-fill drilling results from its Las Chispas property in Sonora. Excellon released high grade underground results from the 623 Manto at its Platosa mine in Durango. ON DEALS AND CORPORATE ISSUES, Great Panther and Beadell Resources completed the friendly acquisition of the latter by Great Panther. Prize Mining trading was halted at the TSX Venture Exchange. Riverside outlined its 2019 business plan, which includes advancing properties, potential joint venture partnerships and strategic alliances. Americas Silver and Pershing Gold announced their shareholders approved its merger.

ON MEXICO ISSUES

  • The president of the Commission on Mining and Regional Development, Geovanna del Carmen Bañuelos de la Torre, said that it is necessary to create a new legal framework to standardize the safety, health and protect workers and the environment. She also recognized that the actual distribution of the Mining Fund lacks rigor on its application, and that a reform proposal has been formulated.

ON EXPLORATION

  • Sable Resources Ltd. summarized its 2018 exploration program, including information from its projects in Mexico. During 2018’s second quarter Sable completed 2,420 m in 12 drill holes at the Margarita project in Chihuahua, testing epithermal veins in Eocene-Oligocene volcanic rocks. “The project is defined by 5 veins; Margarita, El Caido, Juliana, Faviana, and Marie. All exploration drilling by Sable up to this point was executed along 750 m strike of the Margarita Vein”. Results for the first round of drilling include close to surface high-grade intersections like: 252 g/t AgEq over 11.3 m;  462 g/t AgEq over 4.25 m and larger low-grade halos as: 36 g/t AgEq over 21.35 m and 50 g/t AgEq over 44 m. “A second round of drilling planned to start in mid-January includes 1360m in 9 holes to extend the drilling for 1.5km along the known surface trace of the Margarita vein and to close the drilling grid to approximately 250m space. In addition, 1750m will be drilled in 13 exploration holes that will test the other veins”. Sable received title for 12 mining concessions covering 38,396 ha in Chihuahua, all covering stream sediment and rock sample anomalous areas, including the drill ready Vinata vein system located NE of the Margarita project. The company also holds projects in Canada, Peru and Argentina.
  • San Marco Resources Inc. confirmed the existence of a porphyry Cu-Mo-Au system at its Espiritu project in Sonora. The work done confirmed a multi-stage system with an alteration foot-print at least 2.5 Km x 1.2 Km and that the best Cu mineralization is surface and drill core samples is in rocks with potassic alteration and a quartz-chalcopyrite-pyrite stockwork. There are indications that copper mineralization might be preserved at depth within the shallower part of the porphyry system(s). Future work is expected to include magnetic and ZTEM surveys in advance of possible drilling at the project.
  • Kottenay Silver Inc. reported that new assay results from outcropping quartz veins support the potential for the discovery of a high-grade silver deposit at its Columba project in Chihuahua. The veins have strike lengths of 200 m to 2 km, and thicknesses from 0.5 to 6 m. In the latest field campaign 50 channel and 90 grab samples were collected on eight of the ten veins in the property. “Highlights include 33 samples, between lengths of 0.70 and 2.0 meters, returning silver values ranging between 30 gpt to 397 gpt and 55 samples returning grades >10 gpt”. Contiguous channel samples averaged 4.9 m @ 198 gpt Ag; 3.5 m @ 276 gpt Ag; 2.2 m @ 330 gpt Ag; 6.6 m @ 182 gpt. The next steps are additional mapping and surface sampling to prioritize drill targets and obtain drill permits.
  • Silver Viper Minerals Corp. released previously unreported significant drill intercepts from a historical database from La Virginia project in Sonora. The database was generated by Minefinders Corporation Ltd. and Pan American Silver Corp. up to 2013, and includes information on 52,635 m of drilling in 188 holes, with only the first 50 holes having been disclosed in press releases. The disclosed tables include significant intervals from seven areas, here some of these (true width estimated at 75-80% of core length): At Las Huatas, 18 m @ 2.81 gpt Au, 187 gpt Ag (including 1.5 m @ 3.50 gpt Au, 399 gpt Ag; 1.5 m @ 21.6 gpt Au, 1,173 gpt Ag); 0.6 m @ 11.54 gpt Au, 1,156 gpt Ag; 12 m @ 1.26 gpt Au, 109 gpt Ag; 1.5 m @ 6.52 gpt Au, 625 gpt Ag; 8.5 m @ 1.38 gpt Au, 105 gpt Ag (including 3.95 m @ Au, 2.07 gpt Au, 158 gpt Ag); 1.15 m @ 9.67 gpt Au, 658 gpt Ag; 17.5 m @ 0.72 gpt, 35 gpt Ag; 20.45 m @ 1.04 gpt, 69 gpt Ag; 0.9 m @ 54.79 gpt Au, 43 gpt Ag; 7 m @ 1.37 gpt Au, 65 gpt Ag; 7.55 m @ 1.56 gpt Au, 88 gpt Ag; 1.5 m @ 4.92 gpt Au, 421 gpt Ag; 12.9 m @ 2.44 gpt, 122 gpt Ag. At La Virginia, 1 m @ 3.27 gpt Au, 196 gpt Ag; 18 m @ 2.59 gpt Au, 119 gpt Ag (including 1.7 m @ 18.27 gpt Au, 794 gpt Ag); 8.5 m @ 0.87 gpt Au, 36 gpt Ag; 0.8 m @ nil Au, 300 gpt Ag; 19 m @ 0.65 gpt Au, 29 gpt Ag. At Con Virginia, 5.75 m @ 2.35 gpt Au, 153 gpt Ag; 11.7 m @ 0.62 gpt Au, 77 gpt Ag; 17.4 m @ 0.87 gpt Au, 81 gpt Ag; 2.05 m @ 6.73 gpt Au, 976 gpt Ag; 1.2 m @ 7.78 gpt Au, 1055 gpt Ag. At El Oriental, 2 m @ 2.47 gpt Au, 19 gpt Ag; 5 m @ 2.40 gpt Au, 60 gpt Ag; 3.8 m @ 11.99 gpt Au. 77 gpt Ag; At La Cascada, 1.3 m @ 20.92 gpt Au, 37 gpt Ag. At Huatas Sur, 2.8 m @ 1.05 gpt Au, 81 gpt Ag; 1.95 m @ 1.31 gpt Au, 29 gpt Ag; 3.75 m @ 9.32 gpt Au, 144 gpt Ag (including 1.55 m @ 19.97 gpt Au, 254 gpt Ag). At La Colonia, 0.85 m @ 3.04 gpt Au, 23 gpt Ag. Limited confirmation drilling was completed at the Las Huatas and Con Virginia prospects. These holes were drilled to test gaps in the known data. Previously undrilled prospects Huarache, La Gloria and El Rubi were also tested in 2018. To date, the Company has released results for the confirmation drilling at Las Huatas. Subsequent results and a discussion of the 2018 program and plans for 2019 are scheduled for release in the near future.

ON MINING

  • Consolidated Zinc Ltd. provided an update on production at its Plomosas mine in Chihuahua for December 2018. During the period 4,072 tonnes were hauled to surface @ 10.2% Zn, 2.4% Pb. Recoveries at the Santa Eulalia plant have been 89% Zn, 86% Pb. All the ore mined was from an area outside of the JORC defined resource.
  • Great Panther Silver Ltd. reported fourth quarter and 2018 production results for its properties in Mexico. During the year the company produced 1.86 M Oz Ag, 20,161 Oz Au, 1,958 tonnes Pb, 2,361 tonnes Zn from the two operations. At Topia, Durango, 18.9 K tonnes @ 326 gpt Ag, 0.83 gpt Au were processed during the quarter, recovering 92.9% Ag, and 53.4% Au to produce 183.7 K Oz Ag, 267 Oz Au, 474 tonnes Pb, 661 tonnes Zn. At the Guanajuato mine Complex 70.4 K tonnes @ 129 gpt Ag, 2.01 gpt Au were processed, recovering 87.2% Ag, 84.4% Au to produce 254.4 K Oz Ag, 3,833 Oz Au. Reflecting low metal prices, operations at the Guanajuato Mine Complex is shifting all production to the San Ignacio mine for 2019.
  • United States Antimony Corp. reported the status of beneficiation of ore at Los Juarez, Queretaro, where 30 K tonnes have been mined. The crusher and flotation circuits at the Puerto Blanco mill (in Guanajuato) are ready for production, while the tailings installation is nearly complete. Most of the cyanide leach plant has been built and is being installed. The caustic leach plant at Madero to process the flotation concentrates is operational and has recovered the precious metals with close to a 100% recovery, and pilot production of Au, Ag and Sb is about to start in Q1 2019.
  • Sierra Metals Inc. informed it is on track on its staged mine production increase from 3,000 to 3,600 tonnes per day (TPD) in Q1 2019 (and 5,000 TPD by 2020) at its Bolivar mine in Chihuahua. “Completion of the expansion included the installation of a refurbished mill, an electrical substation with 1250 KVA of capacity, a secondary crusher and a hydrocyclone cluster that allows for finer grind size optionality that is estimated to provide a 6% increase in copper recoveries from 80% to 86% at Bolivar Mine”.

Endeavour Silver Corp. reported consolidated production of 5.5 MOz Ag, 52,967 Oz Au (9.5 MOz AgEq) in the fourth quarter 2018.  Drilliing at Bolañitos returned multiple high-grade intersections, including 1.1 m (TW) @ 1,415 gpt Ag, 2.25 gpt Au in the San Miguel mine. Parral drilling and underground sampling returned  multiple high.grade intersections, including 4.2 m (TW) @ 934 gpt Ag, 0.21 gpt Au, 3.0% Pb, 5.9% Zn. El Compas commissioning has been delayed by metallurgical and plant issues that have been or are in the process of being corrected, while the mine development has been completed and and a 10K tonnes stockpile produced. At Guanaceví, the Milache and SCS orebodies development commenced. At Bolañitos, drilling outlined several mineralized areas and extensions to known areas, with potential to extend the mine life. At El Cubo, drilling of new targets failed to intersect any economic mineralization, and production is to be halved to increase mine life while more reserves are sought.

  • New Gold Inc. presented fourth quarter results, including figures from the Cerro San Pedro property in San Luis Potosi.  Mine closure activities continued at the Cerro San Pedro mine, and 1,448 Oz Au were recover by residual leaching of heap pads.
  • Torex Gold Resources Inc. announced 354 K Oz Au were produced at its El Limon-Guajes mine in Guerrero.
  • Capstone Mining Corp. released preliminary fourth quarter production results for 2018, including figures from its operations in Mexico. At Cozamin in Zacatecas, 278.8 K tonnes were processed at a rate of 3,030 tonnes per day (TPD) @ 1.61% Cu, 1.29% Zn, 0.41% Pb, 50.2 gpt Ag, recovering 94.3% Cu, 65.9% Zn, 58.5% Pb, 75.5% Ag to produce 9.36 M Lb Cu, 5.22 M Lb Zn, 3.15 M Lb Pb, 339.2 K Oz Ag, 68 Oz Au.

ON FINANCING

  • Silver One Resources Inc. closed its previously announced private placement financing for gross proceeds of C$623.7 K. Silver One also commented it is not aware of any information other than that previously disclosed in its public filings, news releases or statements, which would result in the levels of trading activity and change in the share price recorded in recent days (Peñasco Quemado, Sonora; La Frazada, Nayarit).
  • Gainey Capital Corp. received conditional approval by the TSX Venture Exchange to close the first tranche of its non-brokered private placement of up to $1.15 M announced on November 28, 2018. In this tranche the closing accrued gross proceeds of $750 K (El Colomo, Nayarit).
  • SilverCrest Metals Inc. informed the completion its non-brokered private placement with Pierre Beaudoin, for gross proceeds of Cdn$292 K (Las Chispas, Sonora).

ON RESOURCES AND DEVELOPMENT

  • Oceanus Resources Corp. informed that during 2018 carried a regional prospecting and mapping program on its El Tigre property in Sonora. The objective was to know the extent of El Tigre Formation, the rock package that hosts the historic El Tigre mine. Such formation was found to extend 5 km to the south reaching the Lluvia de Oro prospect, and 3 km further to the south at La Mancha workings. Prospecting and mapping was carried out also to the east, where several historical underground workings were located. Given the positive results, Oceanus applied for an additional 4,465 hectares, increasing its land position to 26,307 hectares. The company will continue prospecting, mapping and sampling during 2019 to establish drill targets.
  • SilverCrest Metals Inc. released further in-fill results from its Las Chispas property in Sonora. The 20 reported in-fill holes targeted the high-grade Area 51 zone, Babicanora Central zone and Babicanora Footwall and Hangingwall veins. On previous drilling (used for the past resource calculation) the Area 51 had an estimated average 2.7 m of true width (TW) @ 7.13 gpt, 614 gpt Ag (1,148 gpt AgEq); the weighted average of the 28 in-fill holes to date is 3.9 m (TW) @ 11.36 gpt Au, 1,064 gpt Ag (1,915 gpt AgEq). The latest results include the best drilling interception to date: 9.3 m @ 39.66 gpt Au, 3,361 gpt Ag (including 0.4 m @ 252 gpt Au, 9,740 gpt Ag; 0.9 m @ 92.7 gpt Au, 7,570 gpt Ag; 0.4 m @ 47.30 gpt Au, 7,790 gpt Ag).
  • Excellon Resources Inc. announced results from underground exploration at the Platosa mine in Durango. The high-grade 623 Manto has been further defined with diamond drilling results, of which the next results were highlighted: 6.6 m @ 0.1 gpt Au, 704 gpt Ag, 5.8% Pb, 10.1% Zn (including 2.7 m @ 0.1 gpt Au, 1,669 gpt Ag, 13.2% Pb, 24.4% Zn); 4.9 m @ 2,802 gpt Ag, 12.% Pb, 5.4% Zn (including 2.8 m @ 4,789 gpt Ag, 20.4% Pb, 9.0% Zn; 3.7 m @ 775 gpt Ag; 7.3% Pb, 6.4% Zn; 4.2 m @ 150 gpt Ag, 0.1% Pb, 2.0% Zn. The Company continues to test priority targets within the north-south trending Platosa corridor while defining new targets at Jaboncillo, PDN, Saltillera North and South and San Gilberto. A 3D induced polarization program was completed at Jaboncillo and PDN in late 2018 in preparation for drilling programs on both targets in the coming months   

ON DEALS AND CORPORATE ISSUES

  • Great Panther Silver Ltd. filed its management information circular in respect of the friendly acquisition of Beadell Resources Ltd. Once the acquisition is completed, the company will have a diversified portfolio of producing mines in Mexico and Brazil, and an advanced stage development project in Peru, with additional near-term resource growth potential from Bradell’s in and near mine targets to add to the growth potential from Great Panther’s advanced stage Coricancha project in Peru (Topia, Durango).
  • Prize Mining Corp. disclosed its failure to file its annual financial statements for the fiscal year ended August 31, 2018. As a result, the British Columbia Securities Commission issued a cease trade order on Jan 7, 2019 against the company and securities have been halted from trading on the TSX Venture Exchange. The company is working to finalize and file the needed documents and seek to have the cease trade order revoked. (Manto Negro, Coahuila).
  • Riverside Resources Inc. outlined its corporate outlook for 2019. Highlighted in it the presence of exciting drill targets at Cecilia in Sonora and Peñoles in Durango, as well as the advancing of potential joint venture partnerships and strategic alliance discussions with major companies. Riverside expects to expand outside of Mexico, beyond its participation in Croesus Gold Corp. Partner-funded exploration is expected to commence at La Silla project in Sinaloa.
  • Americas Silver Corp. and Pershing Gold Corp. announced their respective shareholders have provided the requisite approvals for their previously announced business combination (Cosala, Sinaloa).

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

On the image below, quartz-sulfide sheeted veinlets with silicified halos in argillitized fragmental tuff on a project in Jalisco. Picture by Jorge Cirett.

Highlights on the Fourth Week of December, 2018. Mining and Exploration News in Mexico


Quartz-sulfide stockwork in strongly sericitized andesitic rock in a project in Jalisco. Picture by Jorge Cirett

By Jorge Cirett

During the 52nd and last week of the year (December 24th to December 30th, 2018), at least 8 press releases were announced by companies working in Mexico. The recent announcement of mining concession liberties was cancelled. Silver Spruce, Gold Resource and First Majestic Silver announced news on financing. Camrova and Vangold are acquiring properties in other countries; Prize Mining made senior level personnel changes, while Defiance Silver and Valoro are to complete their merger. ON MEXICO ISSUES, the incoming liberty of over 800 mining concessions was cancelled. ON EXPLORATION, no relevant news. ON MINING, no relevant News. ON FINANCING, Silver Spruce, Gold Resource and First Majestic Silver announced news on financing. ON RESOURCES AND DEVELOPMENT, no relevant news.  ON DEALS AND CORPORATE ISSUES, Camrova and Vangold are acquiring properties in British Columbia and Guyana, respectively; Prize Mining made senior level personnel changes, while Defiance Silver and Valoro are to complete their merger at year end.

ON MEXICO ISSUES

  • The Mining Agency (Dirección General de Regulación Minera) published on the Federal Post (Diario Oficial de la Federación) that the previously announced liberty of over 800 mining concessions early in 2019 has been cancelled.

ON EXPLORATION

  • No Relevant News.  

ON MINING

  • No Relevant News.  

ON FINANCING

  • Silver Spruce Resources. extended the previously announced completion of its non-brokered private placement to January 23, 2019 (Pino de Plata, Chihuahua).
  • Gold Resources Corp. declared a monthly dividend per share for December 2018. The company has returned $111 M to its shareholders in monthly dividends since commercial production commenced in 2010 (El Aguila, Oaxaca).
  • First Majestic Silver Corp. entered into an equity distribution agreement with BMO Capital Markets Corp. that could amount to up to US$50 M (San Dimas, Durango; Santa Elena, Sonora).

ON RESOURCES AND DEVELOPMENT

  • No Relevant News.  

ON DEALS AND CORPORATE ISSUES

  • Camrova Resources Inc. entered into an option agreement to acquire a property in British Columbia (Boleo, Baja California Sur).
  • Vangold Mining Corp. signed a LOI to acquire a property in Guyana (San Carlos, Guanajuato).  
  • Prize Mining Corp. made several changes at senior level positions (Manto Negro, Coahuila).
  • Defiance Silver Corp. and Valoro Resources Inc. announced that their friendly merger will be completed on December 31, 2018 (San Acacio, Zacatecas; Tepal, Michoacan).

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

Highlights on the Fifth Week of November, 2018. Mining and Exploration News in Mexico


Plagioclase lined epidote patches and veinlets in andesitic volcanic rocks in  Jalisco. Picture by Jorge Cirett.

By Jorge Cirett

During the 48th week of the year (November 26th to December 2nd, 2018), at least 16 press releases were announced by companies working in Mexico. Minaurum, Mexus Gold and Harvest Gold released news on exploration. Impact Silver and Santacruz Silver released third quarter results; America Silver increased production and Goldcorp is commissioning a new plant. Silver Spruce and SilverCrest announced news on financing. Endeavour Silver presented results from drilling. Americas Silver, Telson Mining, Candente Gold, Aura Silver and Firma Holding presented news on deals and corporate issues. ON MEXICO ISSUES, Andrés Manuel López Obrador was sworn as Mexico’s president for the next six years. ON EXPLORATION, In Sonora, Minaurum Gold released high grade gold results from surface sampling of a new vein at its Alamos property; Mexus Gold continues drilling at its Santa Elena project. In Chihuahua, Harvest Gold informed on drilling at its Cerro Cascaron project in Chihuahua. ON MINING, Impact Silver and Santacruz Silver presented quarterly reports. Americas Silver increased production rates at Cosalá, in Sinaloa, and Goldcorp produced first gold on its pyrites plant in Peñasquito, Zacatecas. ON FINANCING, Silver Spruce was granted an extension on its financing round. SilverCrest is securing a $30.6 M investment by SSR Mining. ON RESOURCES AND DEVELOPMENT, Endeavour Silver reported high-grade intersections from Bolañitos, in Zacatecas.  ON DEALS AND CORPORATE ISSUES, Americas Silver and Pershing Gold are to complete a business combination. Telson Mining announced the amending of a loan agreement with Nyrstar. Candente Gold and Sun River signed an agreement on El Oro tailings in Estado de Mexico. Aura Silver is to change name to Aura Resources Inc. Grace Point Mining owns now the Magistral project in Sinaloa.

ON MEXICO ISSUES

  • On December 1st 2018, Andrés Manuel López Obrador, a life-long left wing politician, took charge as Mexico’s president for the next six years (2018-2024).

ON EXPLORATION

  • Minaurum Gold Inc. released high grade gold assays from rock chip sampling on the Alessandra vein at its Alamos project in Sonora.The new vein is the first showing high grade gold in the project, measures more than 4 m in width, can be clearly traced for 1.1 km and topography suggest it might extend for another kilometer. Highlighted rock chip samples include: 0.4 m @ 17 ppb Au, <1 g/t Ag, 2.22% Cu, 0.98% Pb, 2.04% Zn; 1.0 m @ 9 ppb Au, 16 g/t Ag, 0.04% Pb, 0.06% Zn; 1.0 m @ 8 ppb Au, 6 g/t Ag, 1.55% Cu; 0.3 m @ 102,000 ppb Au (102 g/t Au), 29 g/t Ag, 1.94% Cu, 0.07% Pb, 0.25% Zn; 1.0 m @ 619 ppb Au, 4.63% Cu; 0.5 m @ 65 ppb Au, 4 g/t Ag, 2.97% Cu, 0.64% Pb, 4.90% Zn.
  • Mexus Gold US. continues drilling at its Santa Elena project in Sonora (not to be mistaken with First Majestic’s Santa Elena mine, also in Sonora), and is now on its 7th hole. “Drill holes proved the continuity at depth of the main quartz vein varying in width from 0.75 m up to 2.0 meters at 25 to 35 meters deep with a dip angle of 45 degrees to the East”. A shallow dipping shear-fault zone consisting of fault-gouge-mylonite with siderite, hematite and quartz fragments has also consistently being intercepted with 7 to 12 m widths. Holes onward from hole 5 are targeting deeper parts of the Julio vein.
  • Harvest Gold Corp. informed three holes at the Cascarita high grade prospect at its Cerro Cascaron project in Chihuahua have been completed, after delays by unexpected heavy rains at the start of the drilling campaign. The rig is being moved by helicopter to drill the Serpiente Dorada and San Pedro targets.

ON MINING

  • Impact Silver Corp. released third quarter 2018 results. Mill throughput was 42.23 K tonnes @ 165 g/t Ag, to produce 179.5 K Oz Ag. Revenues for the quarter were $3.1 M, EBITDA -$1.5 M, a net loss of $1.4 M, of which $0.4 M was amortization and depletion.The focus now is on development of areas of higher grade ore. Impact is currently raising a non-brokered financing, the fourth capital raise in company history (San Ramón, Estado de México).  
  • Americas Silver Corp. informed production was increased to over 1,700 tonnes per day (tpd) during October at its San Rafael mine in the Cosalá district in Sinaloa.
  • GoldCorp Inc. announced first gold has been achieved at its Peñasquito’s Pyrite Leach Project (PLP) in Zacatecas, Mexico. “Commissioning commenced in the third quarter of 2018 and the PLP is now processing 100% of the existing plant tailings. The PLP plant is operating 24 hours a day and is continuing the planned ramp-up process”. Commercial production is now expected by the end of 2018.
  • Santacruz Silver Mining Ltd. reported third quarter 2018 financial results. At Veta Grande in Zacatecas, and Rosario in San Luis Potosi, 58 K tonnes were processed to produce 249.4 K Oz Ag at cash cost $27.40 and AISC of $31.07 per AgEq Oz. Santacruz recorded a net loss of $2.9 M during the period and a negative EBITDA of $2.74 M.  

ON FINANCING

  • Silver Spruce Resources Inc. was granted an extension by the TSX Venture Exchange to complete the previously announced non-brokered private placement to raise up to $1.5 M (Pino de Plata, Chihuahua).
  • SilverCrest Metals Inc. announced SSR Mining Inc. has agreed to invest $30.66 M (C$40 M) in a non-brokered private placement financing. As long as SSR hold more than 5% of SilverCrest outstanding shares,it is entitled to acquire up to a maximum of 9.9% of the shares, participation rights to maintain pro rata share ownership interest, a right of first refusal on any proposed royalty, stream of off take agreement and certain information rights to Las Chispas technical and scientific data.

ON RESOURCES AND DEVELOPMENT

  • Endeavour Silver Corp. reported high-grade intersections from the drilling program at the Bolañitos mine in Guanajuato. “A total of 55 drill holes from surface and 11,000 metres were completed by the end of October on seven different vein targets, all of which are located within four kilometres of the Bolanitos plant”. Some true width (TW)  highlighted intervals: 8.0 m @ 2.68 g/t Au, 6 g/t Ag; 1.2 m @ 13.17 g/t Au, 138 g/t Ag; 2.2 m @ 2.19 g/t Au, 53 g/t Ag; 2.2 m@ 2.05 g/t Au, 121 g/t Ag; 1.5 m @ 3.74 g/t Au, 49 g/t Ag; 1.3 m @ 2.92 g/t Au, 51 g/t Ag; 1.9 m @ 2.62 g/t Au, 18 g/t Ag; 1.5 m @ 8.66 g/t Au, 89 g/t Ag; 1.1 m @ 2.25 g/t Au, 1,415 g/t Ag; 1.6 m @ 6.79 g/t Au, 420 g/t Ag; 1.9 m @ 3.42 g/t Au, 102 g/t Ag; 1.4 m @ 2.38 g/t Au, 635 g/t Ag.

ON DEALS AND CORPORATE ISSUES

  • Americas Silver Corp. entered last September into a definitive agreement to complete a business combination with Pershing Gold, which owns the Relief Canyon project in Nevada. Relief Canyon is expected to produce 75-90 K Oz Au annually for at least seven years of mine life. Both Americas Silver and Pershing Gold shareholders have to vote on the transaction prior to a meeting on January (Cosalá, Sinaloa).
  • Telson Mining Corp. reached an agreement with Nyrstar Holdings Ltd. to amend the terms of its loan agreement. Among the main terms, Telson paid US$500 K plus interest and agreed to pay monthly installments of US$500 K plus interest until October 2019, at 10% per annum. Along with these payments, Telson will also pay 70% of any monthly cash flow, plus any monthly excess cash balance above US$500 K plus 50% of the monthly free cash flow generated by Telson’s Tahehueto project, once it declares commercial production (Campo Morado,Guerrero).
  • Candente Gold Corp. signed a definitive agreement with Sun River Gold Corp. in which Sun River has the option to further test and, if proven economic, develop and operate the Candente’s tailings project in El Oro, Estado de México. Besides an already made payment of US$170 K, Sun River has to make staged payments to complete US$300 K within 15 months from the signing on November 2017 and grant Candente a 10% of net profits life of mine royalty. The tailings contain an inferred resource of 1.27 K tonnes containing 119.9 K Oz Au, 3 M Oz Ag (El Oro, Estado de México).
  • Aura Silver Resources. Announced its shareholders approved the name change to Aura Resources Inc., and a five to one consolidation of the shares, on a meeting held on November 15th, 2018 (Taviche, Oaxaca).
  • Firma Holdings Corp. announced “that its subsidiary GracePoint Mining Corp. and MX Gold Corp., signed a confidential mutual release”. As a result, MX Gold no longer has any rights,ownership interests, liabilities, or obligations associated with the Magistral Project, and GracePoint Mining Corp. owns 100% of the Magistral project in Sinaloa.  

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

On the image above, plagioclase lined epidote patches and veinlets in andesitic volcanic rocks in  Jalisco. Picture by Jorge Cirett.

Highlights on the Fourth Week of October, 2018. Mining and Exploration News in Mexico

Stibiconite-Cervantite crystals

By Miguel A Heredia

During the 43th week of the year (October 22th to October 28th, 2018), at least 29 press releases were announced by companies working in Mexico, with seven communicating mining activities, seven reporting on resources and developments, five disclosing deals and corporate issues,  five announcing financing issues, and four informing on exploration results. ON MEXICO ISSUES, the 13th International Mining Congress Sonora 2018 was held in the city of Hermosillo, Sonora on October 23-26. ON EXPLORATION, In Sonora, Minera Alamos and Minaurum reported exploration results from theirs Santana and Alamos Silver projects respectively. In Chihuahua, Harvest Gold provided an update of the drilling program on its Cerro Cascaron project. In Zacatecas, Santacruz provided drill results from its Veta Grande project. ON MINING, Agnico, Excellon, Fresnillo, GoGold, Goldcorp, Hecla and New Gold reported Q3 2018 results from their Mexican operations. ON FINANCING, Consolidated Zinc raised $1.3M from its share purchase plan, and proposed to raise further $220K. Auxico announced that its common shares are already trading on the NEX Exchange Growth Market. Mexican Gold announced its intention to complete a non-brokered private placement of up to $3M.  Oroco Resource increased its previous private placement to rise now up to $750K. Gold Resource declared monthly dividend to shareholders. ON RESOURCES AND DEVELOPMENT, Almaden reported infill drilling results within the PFS pit from its Ixtaca project in Puebla. Goldcorp announced proven and probable mineral reserves for its Peñasquito mine in Zacatecas. Mexican Gold announced plans to update resources for its Las Minas project in Veracruz. Premier Gold commenced an underground drilling program at its Marianas/Mercedes mine in Sonora.  Pan American Silver discovered wide mineralized zones at its La Colorada mine in Zacatecas. Torex reported infill drilling results for its Media Luna project in Guerrero. Azure released drill results from its Oposura project in Sonora. ON DEALS AND CORPORATE ISSUES, Canasil signed a letter of intent providing for Pan American Silver to acquire Canasil´s interest in the Sandra-Escobar project in Durango. Prize Mining retained Link Media to provide communications and market awareness services (Manto Negro, Coahuila). Metalla provided an update on the royalty acquisition of the Santa Gertrudis project in Sonora from GoGold. New Gold announced management changes (Cerro San Pedro, San Luis Potosi). Odyssey provided an update on legal filing for its Don Diego phosphate project in Baja California Sur.

ON MEXICO ISSUES

  • The 13th International Mining Congress Sonora 2018, was held in Hermosillo, Sonora on October 23-26. Sonora is the top state for mining in all Mexico.

 ON EXPLORATION

  • Minera Alamos Inc., reported drill results of a new broad zone of Au-Ag mineralization from its Santana project in Sonora. Hole S18-121 intersected 95.7m of 0.85 g/t Au, 10 g/t Ag, and 0.33% Cu (1.47 g/t Au Eq), including 70m of 1.1 g/t Au, 12 g/t Ag, and 0.56% Cu (1.88 g/t Au Eq). “The hole is the first drilled deep enough to intersect this new style of polymetallic mineralization that is associated with an andesite porphyry unit related to disseminated pyrite and intrusive breccias. Based on surface exposures and known geology the mineralized system appears to be open to expansion in all directions”.
  • Minaurum Gold Inc., released sampling results from the newly discovered Europa Sur Vein extension at its Alamo Silver project in Sonora. Significant results are 0.33 g/t Au, 1,205 g/t Ag, 1.9% Pb, 1.4% Zn, and 3.2 % Cu; 0.8m of 479 g/t Ag, 0.3% Pb, 0.5% Zn, and 3.19% Cu, and 2m of 0.15 g/t Au, 179 g/t Ag, 1.9% Pb, 1.3% Zn, and 2.51% Cu. “With this newly discovered extension, the Europa-Guadalupe vein now measures 2.5 km in strike length and further expands the scope of Minaurum’s exploration program to find extensions of all other currently identified veins”.
  • Harvest Gold Corporation, provided an update of the ongoing drilling program on its Cerro Cascaron Au-Ag project in Chihuahua. At Cascarita Silver target the drilling program is ongoing and currently focused on completing 600m in three holes. Once this target is drill tested, the crew will move to the Cascaron Vein Gold Field to drill three holes to test 900m of strike along the Serpiente Dorada and Julieta structures, and one hole to test beneath a high-grade Au-Ag surface samples across the Carabina vein.
  • Santacruz Silver Mining Ltd., announced drilling results from its Veta Grande project in Zacatecas and expanded the high-grade footprint. Highlights results are in Hole NA 18-006 with 2.15m (TW 1.95m) of 0.17 g/t Au, 669 g/t Ag, and 0.12% Cu, including 0.9m (TW 0.82m) of 29 g/t Au, 1,220 g/t Ag, and 0.12% Cu;

ON MINING

  • Agnico Eagle Mines Ltd., released Q3 2018 production results from its Mexican Operations. At Pinos Altos, Chihuahua, Agnico processed 508,000 tonnes of 2.96 g/t Au to produce 46.4K Oz Au. At Creston Mascota, Chihuahua, the company processed 309,000 tonnes of 0.84 g/t Au to produce 8K Oz Au. At La India, Sonora, Agnico processed 1,426,000 tonnes of 0.79 g/t Au to produce 27K Oz Au.
  • Excellon Resources Inc., reported Q3 2018 production results from its La Platosa mine in Durango. In this period, Excellon milled 17,907 tonnes of 416 g/t Ag, 3.5% Pb, and 4.3% Zn to produce 171.2K Oz Ag, 0.8M Lb Pb, and 1M Lb Zn with metallurgical recoveries of 89.9%, 74.2%, and 78.2% respectively.
  • Fresnillo plc., announced Q3 2018 production results from their Mexican operations. At Fresnillo mine, Zacatecas, the company processed 613,794 tonnes of 0.68% Au, 211 g/t Ag, 0.9% Pb, and 1.8% Zn to produce 10.5K Oz Au, 3.7M Oz Ag, 11M Lb Pb, and 18.1M Lb Zn. At Saucito mine, Zacatecas, 713,441 tonnes were processed at grades of 1.34 g/t Au, 250 g/t Ag, 0.9% Pb, and 1.6% Zn to produce 23.6K Oz Au, 4.9M Oz Ag, 12.9M Lb Pb, and 17.7M Lb Zn. At the Pyrites Plant, Fresnillo processed 63,336 tonnes of 2.9g /t Au and 423 g/t Ag to produce 1.4K Oz Au and 423K Oz Ag. At La Cienega mine, Durango, the company processed 332,493 tonnes of 1.79 g/t Au, 169 g/t Ag, 0.6% Pb, and 0.9% Zn to produce 18.2K Oz Au, 1.54M Oz Ag, 2.47M Lb Pb, and 4.2M Lb Zn. At San Julian mine, Chihuahua, 332,836 tonnes were processed from the vein system with grades of 1.84 g/t Au and 137 g/t Ag to produce 18.5K Oz Au and 1.35M Oz Ag while 561,808 tonnes were processed from San Julian JM disseminated ore body with grades of 0.11 g/t Au, 156 g/t Ag, 0.4% Pb, and 1.3% Zn to produce 9994 Oz Au, 2.3M Oz Ag, 2.8M Lb Pb, and 11.3M Lb Zn. At Herradura mine, Sonora, 5,859,579 tonnes were processed with grades of 0.76 g/t Au and 3 g/t Ag to produce 109.6 Oz Au and 492K Oz Ag. At Noche Buena mine, Sonora, Fresnillo processed 4,834,512 tonnes of 0.52 g/t Au to produce 42.5K Oz Au.
  • GoGold Resources Inc., presented Q3 2018 production results from its Parral tailings operation in Chihuahua. GoGold produced 105.6K Oz Ag and 1,665 Oz Au.
  • Goldcorp Inc., produced a total of 503K Oz Au during Q3 2018 from their mine operations. Goldcorp did not present separate production results by mines.
  • Hecla Mining Company, produced in Q3 2018 over 3.7K Oz Au and 0.5M Oz Ag from its San Sebastian mine in Durango.
  • New Gold Inc., reported Q3 2018 production results from its Cerro San Pedro operation in San Luis Potosi. New Gold produced 2K Oz Au and 0.1M Oz Ag from residual leaching.

ON FINANCING

  •  Consolidated Zinc Limited, closed its share purchase plan on October 22, 2018, raising a total of $1.3M. The company also proposed to conduct a placement to raise a further $220K (Plomosas mine, Chihuahua).
  • Auxico Resources Canada Inc., announced that its common shares are already trading on the NEX Exchange Growth Market in London. (Zamora Mining District, Sinaloa).
  • Mexican Gold Corp., notified its intention to complete a non-brokered private placement of up to $3M, the same that could be increased by up to 25% for aggregate gross proceeds of up to $3.75M. (Las Minas, Veracruz).
  • Oroco Resource Corp., announced that it has increased its previous private placement to raise net gross proceeds of up to $750K (Santo Tomas, Sinaloa).
  • Gold Resource Corporation, declared monthly dividend of 1/6 of a cent for common share to shareholders (El Aguila mine, Oaxaca).

 

ON RESOURCES AND DEVELOPMENT

  • Almaden Minerals Ltd., reported infill drilling results from its Ixtaca project in Puebla. The results are part of the PFS filed work program within the resource and mine plan area. Significant intersections are in Hole TU-18-543 with 127.40m of 1.15 g/t Au and 18 g/t Ag, including 34.50m of 2.08 g/t Au and 47 g/t Ag; Hole TU-18-544 with 145.50m of 1.83 g/t Au and 14 g/t Ag, including 40m of 4 g/t Au and 35 g/t Ag, including 5.10m of 11.6 g/t Au and 87 g/t Ag; Hole TU-18-548 with 139.08m of 1.58 g/t Au and 17 g/t Ag, including 60.58m of 2.75 g/t Au and 23 g/t Ag, including 28.50m of 4.33 g/t Au and 34 g/t Ag; and Hole TU-18-550 with 131.50m of 1.51 g/t Au and 49 g/t Ag, including 21m of 7.5 g/t Au and 57 g/t Ag, including 9.70m of 15.18 g/t Au and 104 g/t Ag, and including 11.50m of 1.07 g/t Au and 89 g/t Ag.
  • Goldcorp Inc., presented reserves and resource estimates as of June 30, 2018 for its Peñasquito mine in Zacatecas. Proven reserves are 376.43 M tonnes of 0.58 g/t Au, 35 g/t Ag, 0.3% Pb, and 0.8% Zn for a total of 6.97M Oz Au, 418.3M Oz Ag, 2,804M Lb Pb, and 6,314M Lb Zn. Probable reserves are 143.99M tonnes of 0.46 g/t Au, 24 g/t Ag, 0.3% Pb, and 0.5% Zn for a total of 2.15M Oz Au, 109.3M Oz Ag, 809.6M Lb Pb, and 1,680.3M Lb Zn. Proven + Probable reserves are 520.41M tonnes of 0.55 g/t Au, 32 g/t Ag, 0.3% Pb, and 0.7% Zn for a total of 9.1M Oz Au, 527.6M Oz Ag, 3,613.2M Lb Pb, and 7,994.5M Lb Zn. Measured resources are 94.03M tonnes of 0.25 g/t Au, 28 g/t Ag, 0.3% Pb, and 0.6% Zn for a total of 0.76M Oz Au, 85.6M Oz Ag, 579.6M Lb Pb, and 1,161.2M Lb Zn. Indicated resources are 104.77M tonnes of 0.24 g/t Au, 12 g/t Ag, 0.3% Pb, and 0.5% Zn for a total of 0.81M Oz Au, 76.7M Oz Ag, 610M Lb Pb, and 1,044.2M Lb Zn. Measured + Indicated resources are 198.8M tonnes of 0.25 g/t Au, 25 g/t Ag, 0.3% Pb, and 0.5% Zn for a total content of 1.57M Oz Au, 162.3M Oz Ag, 1,189.6M Lb Pb, and 2,205.4M Lb Zn. In addition, inferred resources are 14.88m tonnes of 0.3 g/t Au, 13 g/t Ag, 0.2% Pb, and 0.6% Zn for a total of 0.14M Oz Au, 6.4M Oz Ag, 54.1M Lb Pb, and 206.6M Lb Zn (Mineral resources are exclusive of mineral reserves).
  • Mexican Gold Corp., announced plans to update mineral resources for its Las Minas project in Veracruz. It also announced plans to conduct 3,000m of drilling to update and expand its open pit modeled mineral resource at the El Dorado/Juan Bran and Santa Cruz zones.
  • Premier Gold Mines Limited, commenced an underground drilling program at its Marianas/Mercedes mine in Sonora, where previous drill results suggest to have the potential to contain economic mineralization of higher than the current reserve grades. The goal is to convert the Marianas mineral resources to mineral reserves. If the results are positive, mining at Marianas could begin in H2 2019.
  • Pan American Silver Corp, discovered wide mineralized zones in limestone replacement mantos and thick intercepts of skarn below the current production levels at its la Colorada mine in Zacatecas. Drill highlights are in Hole U-39-18 with 223m of 69 g/t Ag, 1.9%Pb, and 3.4% Zn, including 32m of 227 g/t Ag; Hole U-30-18 with 71.6m of 54 g/t Ag, 2% Pb, and 5% Zn; Hole U-28-18 with 60.3m of 76 g/t Ag, 4.3% Pb, and 3.7% Zn; Hole U-32-18 with 46.3m of 54 g/t Ag, 2.3% Pb, and 4.4% Zn; Hole U-26-18 with 42.6m of 42 g/t Ag, 2.8% Pb, and 7% Zn, and other interval of 42m of 52 g/t Ag, 1.8% Pb, and 3.9% Zn; and Hole U-29-18 with 7.4m of 80 g/t Ag, 5.3% Pb, and 13.6% Zn, and other interval of 23.4m of 54 g/t Ag, 2.3% Pb, and 8.2% Zn. “These are extraordinary exploration results for our La Colorada mine, indicating the potential to substantially expand mineral resources, mine life and ultimately production capacity,”
  • Torex Gold Resources Inc., reported infill drilling results for its Media Luna project in Guerrero. Highlights intercepts include Hole ML 18-222A with 39.15m of 5.24 g/t Au, 93 g/t Ag, and 2.27% Cu (10.54 g/t Au Eq); Hole ML 18-215 with 49.63m of 4.8 g/t Au, 36 g/t Ag, and 0.97% Cu (7.0 g/t Au Eq); Hole ML 18-219W with 45.9m of 3.44 g/t Au, 59 g/t Ag, and 1.64% Cu (7.1 g/t Au Eq); and Hole ML 18-208W with 22.62m of 3.33 g/t Au, 87 g/t Ag, and 2.12% Cu (8.27 g/t Au Eq) (Intersections are reported as true thickness).
  • Azure Minerals Limited, released drill results from its Oposura project in Sonora. Significant intersections in the middle of the Central Zone are in Hole OPDH-173 with 12.05m of 23 g/t Ag, 1.7% Pb and 6% Zn, including 4.1m of 43 g/t Ag, 2% Pb and 10.5% Zn; and Hole OPDH-178 with 9.50m of 22 g/t Ag, 3.7% Pb, and 15.1 % Zn, including 6.15m of 31 g/t Ag, 4.7% Pb, and 22% Zn. Significant intersections in the East Zone into the Central Zone are in Hole OPDH-159 with 5m of 14 g/t Ag, 4% Pb, and 5.2% Zn and 6.15m of 97 g/t Ag, 2.3% Pb, and 13.4% Zn; Hole OPDH-171 with 4.4m of 294 g/t Ag, 5.6% Pb, and 14.8% Zn, including 3.6m of 353 g/t Ag, 6.6% Pb, and 17.7% Zn; and Hole OPDH-177 with 4.55m of 138 g/t Ag, 6.1% Pb, and 30.8% Zn, including 3.4m of 177 g/t Ag, 8% Pb, and 40.1% Zn. “These latest, high-grade, massive sulphide drill intersections from the sparsely drilled Central Zone confirm that this area has the potential to significantly increase Oposura’s resource base”. “They continue to build on the very positive results from the Oposura Scoping Study and confirm potential to extend the mine life and further improve the already impressive project economics.”

ON DEALS AND CORPORATE ISSUES

  • Canasil Resources Inc., signed a letter of intent providing for Pan American Silver to acquire Canasil´s interest in the Sandra-Escobar project in Durango. The non-binding LOI is to enter in a definitive agreement for a payment of CAD $2.0M and 2% NSR. The NSR royalty can be reduced by Pan American Silver to 1% at any time by paying CAD $4.0M.
  • Prize Mining Corporation, retained Link Media to provide communications and market awareness services (Manto Negro, Coahuila).
  • Metalla Royalty & Streaming Ltd., announced that it is proceeding to close the acquisition of the 2% NSR on the Santa Gertrudis project in Sonora from GoGold Resources Inc.
  • New Gold Inc., announced management changes (Cerro San Pedro, San Luis Potosi).
  • Odyssey Marine Exploration Inc., filed an action before the Superior Section of the Mexican Federal Administrative Court due to the SEMARNAT´s recent refusal to issue the environmental permit for its San Diego phosphate project in Baja California Sur.

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, stibiconite-cervantite crystals in an epithermal system in Durango, Mexico.  Photo by Miguel A Heredia.

CAMIMEX presents figures on the Mexican Mining Industry

CAMIMEX’s president, Fernando Alaniz, presented figures from the Mexican Mining industry on  the AIMMGM’s conference held in Hermosillo from October 24th to October 26th. The Mining Fund collected from mineral royalties in Mexico, supplied in 2017 $4,206 million pesos (about US$ 220 M), accruing more than $12,000 million pesos (over US$631 M) on the last four years. In 2017 alone, $28,806 million pesos (US$1,516 M) were paid on income tax, and an additional $4,726 million pesos (US$248.7 M) were invested by mining companies in the communities and environment where they are located. The payment of mining duties on mining concessions in 2017 was $2,525 million pesos (US$132.9 M). The total of Mining duties, mining fund and Income Tax for 2017 add up to $35,537 million pesos (US$ 1,870 M).

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The average salary of a miner is 3.4 to 5.0 times the official minimum salary, not including the 10% payment on yearly profit by the employer (PTU).

In the last 12 years the direct investment on the Mexican mining sector has been US $51,445 M, but investment in exploration has decreased 63% from 2012 to 2016. In the attractiveness index for investment Mexico has gone from the 11th place in 2011 to the 44th place in 2018, with land access, rule of law, security, new taxes and a heavy increase on mining duties blamed for the fall in ranking. At the same time our direct competitors for investment in the mining industry Peru passed from the 39th to the 19th position, and Chile from the 6th to the 8th position.

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According to Alanis, the main causes for the fall in competitiveness include over regulation and red tape, uncertainty in the determination of environmentally protected areas and a distorted image of the industry before communities and society.

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Points addressed by Alanis to make of Mexico a mining country include improvements in security, a better infrastructure (railways, ports), certainty on land rights, a common ground with other mining countries in fiscal terms, administrative efficiency in the application and issuing of mining concession titles and certainty and transparency in the timely granting of permits.

 

Highlights on the Third Week of October, 2018. Mining and Exploration News in Mexico

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By Jorge Cirett

During the 42nd week of the year (October 15th to October 21st, 2018), at least 31 press releases were announced by companies working in Mexico. San Marco and Odyssey released advances in exploration. Galore Resources and Aura Minerals released news on mining, while Avino Silver, First Majestic, Premier Gold and Gold Resource reported Q3 production results. Sonoro Metals, First Majestic, Azucar Minerals and Plata Latina reported news related to financing. Telson, Azure, Candelaria and Goldplay reported on advances on its properties. Santacruz, Prize Mining, Azucar Minerals, Alio Gold, Canuc Resources, Minera Alamos and Excellon presented information on deals or corporate issues. ON MEXICO ISSUES, CAMIMEX stated there are 19 ongoing projects to augment gold production in Mexico. ON EXPLORATION, In Baja California Sur, Odyssey informed on SEMARNAT’s refusal for permitting the Don Diego project. In Sonora, San Marco is to start mapping and sampling the Espiritu project. In Coahuila, Prize Mining continues drilling at its Manto Negro project. ON MINING, Avino Silver, First Majestic, Premier Gold, and Gold Resource reported on Q3 2018 production. Galore begun mining at Los Gemelos, Zacatecas. Aura Minerals completed the first copper concentrate shipment from Aranzazu, also in Zacatecas. ON FINANCING, Sonoro is undertaking a private placement to raise up to $500 K. First Majestic filed a shelf prospectus that enables the raising of up to US$300 M in 25 months. Newcrest is exercising its top up rights to maintain 19.9% ownership of Azucar Minerals. Plata Latina settled C$231 K of indebtedness by share issuing. ON RESOURCES AND DEVELOPMENT, Telson released high grade results from development sampling at Tahuehueto, Durango. Azure Minerals announced a positive scoping study on its Oposura project in Sonora. Candelaria Mining filed a NI-43-101 report on its Pinos project in Zacatecas. Goldplay was approved the drilling permit by SEMARNAT for drilling at its San Marcial project in Sinaloa. Azure Minerals released a positive scoping study on its Oposura project in Sonora, for an open pit/underground operation. Newcrest is to maintain its 19.9% ownership of Azucar Minerals (see above).  Minera Alamos reported second round drill results on its Santana property in Sonora. ON DEALS AND CORPORATE ISSUES, Santacruz Silver made the final payment to acquire a considerable land package in the Zacatecas district. Newcrest is to maintain its participation in Azucar Minerals. Canuc received conditional approval for its acquisition of Circle Energy. Alio Gold is disposing of some assets in Nevada and reducing its debt levels. Excellon is to sell the Beschefer project in Canada.

ON MEXICO ISSUES

  • According to CAMIMEX (Cámara Minera de México) there are 19 investment projects to be developed during the 2018-2019 period, five in Durango (Camino Rojo, Piritas in Peñasquito, El Compás, Fresnillo’s Piritas project and Juanicipio), four in Guerrero (Ana Paula, Bermejal underground, Media Luna, and Rey de Plata), four in Durango (Tahuehueto, Pitarrilla, Metates and San Agustin), Two in Sonora (Santa Gertrudis and a second leach plant at La Herradura), one in Puebla (Ixtaca) and one in Chihuahua (San Julian). Gold production in 2017 was 4,080,000 ounces, decreasing by 4% on the prior year, but considerably larger than the 848,000 ounces produced in year 2000.

ON EXPLORATION

  • San Marco Resources Inc. is to start exploration at its Espiritu porphyry copper project in Sonora. Work in the property will consist of geological mapping, surface rock sampling and assessment of past drill hole and surface data. San Marco’s first pass review suggest the system is open in most directions. Past drill hole intercepts include 48.0 m @ 0.19 g/t Au, 0.10 % Cu and 220.5 m @ 0.14 g/t Au, 0.15% Cu.
  • Odyssey Marine Exploration Inc. received notification that SEMARNAT repeated their refusal to issue an environmental permit for the phosphate deposit, “in direct contravention of the Order of the Federal Administrative Court”. SEMARNAT did not inform of any new environmental information used as a basis their decision, as was required in the Court’s Order. Odyssey “expects its legal team to file a new action before the Superior Section of the Federal Administrative Court demonstrating that SEMARNAT is in contempt of the Court’s Order with a request for sanctions and notification to Mexico’s Internal Control Unit” (Don Diego, Baja California Sur).
  • Prize Mining Corp. continues with the 30-hole 3,000 m drill program at its Manto Negro project in Coahuila. “Core is being logged and sampled and sent out for assay, with first results expected in November”.

ON MINING

  • Avino Silver & Gold Mines Ltd. announced its third quarter production results for 2018. In the Avino mine. during the period 81.5 K dry tonnes were milled @ 58 g/t Ag, 0.52 g/t Au, 0.54% Cu; with 84% Ag, 67% Au, 88% Cu recoveries to produce 112.6 K Oz Ag, 882 Oz Au, 865 K Lb Cu (or 3,935 Kg Ag, 28.31 Kg Au, 392.36 Tonnes Cu). In the San Gonzalo mine (which is nearing the end of its mine life) 19.7 K dry tonnes were milled @ 226 g/t Ag, 1.15 g/t Au; with 78% Ag, 75% Au to produce 107.8 K Oz Ag, 532 Oz Au (or 3,461 Kg Ag, 17,086 g Au). From the above ground stockpile 88.7 K tonnes were milled @ 62 g/t Ag, 0.45 g/t Au, 0.15% Cu; with 57% Ag, 52% Au, 37% Cu recoveries, to produce 97.4 K Oz Ag, 652 Oz Au, 112.8 K Lb Cu (or 3,127 Kg Ag, 20,931 g Au). An additional 8,212 Oz Ag were produced by a test program to recover precious metals and zinc from the San Gonzalo mine tailings. To counter significantly lower metal prices, Avino is reducing costs by postponing exploration, as well as reducing general and administrative costs in Mexico and British Columbia.
  • First Majestic Silver Corp. announced production results for Q3 2018. Consolidated results include the milling of 864 K tonnes of ore to produce 3.5 M Oz Ag, 35,260 Oz Au, 4.44 M Lb Pb, 1.23 M Lb Zn (or 6.74 M Oz AgEq). A 20% cost reduction program across all areas is being implemented to deal with the prolonged low silver prices. AgEq year on year production grew by 69%, mainly by the addition of the San Dimas operations. The mine by mine production table is below.

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  • Galore Resources Inc. Has begun mining at Los Gemelos, in Zacatecas. Mining has begun without a feasibility study at Galore’s owned Duraznillo ranch, which includes the Los Gemelos and Duende 7 claims, within the Concepción del Oro district. The mining contractor has installed a gold processing plant with initial capacity of 90 tons per week. The proceeds, net of costs, are to be allocated with 40% to Galore and 60% to the contractor, URBYASA.
  • Aura Minerals Inc. completed the first shipment of copper concentrate since the reopening of its Aranzau mine in Zacatecas. Aura “continues to further progress on the underground mine development and operational improvements to the plant. Construction of the new tailings disposal system (TD5) is expected to be completed this year”.
  • Premier Gold Mines Ltd. released Q3 2018 production results, including figures from its Mercedes mine in Sonora, where 17,465 Oz Au; 88,390 Oz Ag were produced. “The Mercedes Mine remains focused on cost reduction and the development of new deposits to increase flexibility and productivity……. construction to expand tailings capacity began. Additionally, development continued on a drift from the Lagunas mine to access the higher-grade Marianas deposit located along the main Mercedes mine trend”.
  • Gold Resource Corp. reported preliminary production results for the third quarter 2018. During the period production totaled 434 tonnes Cu, 2,119 tonnes Pb, 4,970 tonnes Zn, and no details were disclosed on precious metals. For the first three quarters of 2018, 18,864 Oz Au, 1.34 M Oz Ag, 1,206 tonnes Cu, 5,274 tonnes Pb, 14,236 tonnes Zn were produced.

ON FINANCING

  • Sonoro Metals Corp. proposes to undertake a non-brokered private placement, aiming to raise up to $500K (Cerro Caliche, Sonora).
  • First Majestic Silver Corp. filed a preliminary short form base shelf prospectus that will allow First Majestic to raise up to US$300 M during the next 25 months (Six producing mines in Mexico).
  • Azucar Minerals Ltd. announced Newcrest Canada Holdings Inc. exercised its top-up rights pursuant to the May 2018 investor rights agreement with Azucar, acquiring additional shares for a total of $124.4 K, and maintaining its 19.9% ownership.
  • Plata Latina Minerals Corp. has agreed to settle indebtedness of C$201 K owing to its directors and indebtedness of C$30 K owing to its former CEO, by issuing common shares.

ON RESOURCES AND DEVELOPMENT

  • Telson Mining Corp. reported assay results from veins exposed during underground development at its Tahuehueto mine in Durango. Highlighted results comprise 3.25 m @ 7.10 g/t Au, 37 g/t Ag, 0.22% Cu, 0.9% Pb, 5.4% Zn; 6.10 m @ 5.04 g/t Au, 36 g/t Ag, 0.16% Cu, 1.8% Pb, 3.9% Zn; 8.05 m @ 2.52 g/t Au, 28 g/t Ag, 0.19% Cu, 0.8% Pb, 2.9% Zn; 4.20 m @ 8.02 g/t Au, 96 g/t Ag, 2.93% Cu, 5.0% Pb, 8.2% Zn; 4.40 m @ 2.62 g/t Au, 19 g/t Ag, 1.3% Cu, 3.8% Pb, 3.7% Zn.
  • Candelaria Mining Corp. filed a NI-43-01 preliminary feasibility assessment (PEA) report on its Pinos project, Zacatecas. The resources stand at: 85,847 tonnes @1.6 g/t Au, 83 g/t Ag measured; 175.7 K tonnes @ 3.6 g/t Au, 47 g/t Ag indicated; 529.6 K tonnes @ 3.6 g/t Au, 48 g/t Ag as inferred. The measured resources are in dumps, whereas the indicated and inferred resources are contained in veins 1.3 to 2.1 m in average widths. Production costs were evaluated for a range of 200 to 400 tonnes per day (tpd) operation. The capital cost is estimated at $13.5 M and the sustaining capital at $9.15 M.
  • Goldplay Exploration Ltd. received approval from SEMARNAT (Mexican environmental agency) for its upcoming drill programs at San Marcial, Sinaloa. Up to 69 drill holes can be completed within a two year window. A NI-43-101 resource estimate is to be completed before the end of 2018., and a PEA is expected to be undertaken in 2019.
  • Azure Minerals Ltd. announced a positive scoping study (SS) completed at its Oposura project in Sonora. “The Study delivers a Life of Mine (LOM) EBITDA of A$237 million, NPV(8%) (pre-tax) of A$112 million and an IRR (pre-tax) of 76%….. ”. The study calls for mining by open pit and underground methods 2.5 M tonnes @ 4.6% Zn, 2.6% Pb, 15.9 g/t Ag. The initial mine life is 5.3 years, with average annual production of 19 Kt Zn, 10 Kt Pb, 145 K Oz Ag. The total capital expenditure needed to achieve production is A$ 69.9 M (US$ 52.4 M).
  • Minera Alamos Inc. reported results on the second round of its phase 1 drilling program at its Santana property in Sonora. Highlighted results comprise 80.4 m @ 1.05 g/t Au; and 8.0 m @ 1.0 g/t Au and 24.5 m @ 0.81 g/t Au on a second hole. “Planning of the Phase 2 drill program will begin once the remaining drilling results have been received and interpreted”.

ON DEALS AND CORPORATE ISSUES

  • Santacruz Silver Mining Ltd. has made the final option payment to acquire 149 concessions covering 7,800 ha in the Zacatecas district. Santacruz now controls 8,900 ha in the district.
  • Azucar Minerals Ltd. informed Newcrest Canada Holdings Inc. has confirmed its intention to exercise its top-up rights on their last May signed agreement. Under the scheme, Newcrest is to maintain its 19.9% ownership of Azucar (El Cobre, Veracruz).
  • Alio Gold Inc. entered into a definitive agreement to sell the Lincoln Hill, Wilco and Gold Ridge projects in Nevada to Coeur Mining Inc.. Alio is to receive $19 M upon the closing of the transaction. Recently, Alio has also reduced its outstanding debt with Macquarie Bank Ltd. from $15 million in past June, to $5 million now. The Company expects to fully extinguish the MBL debt during the fourth quarter. Alio also settled a $5 M contingent liability that the Company acquired with its acquisition of Rye Patch Gold Corp. and the Florida Canyon Mine earlier this year. The Company has also updated its surety bond for the Florida Canyon Mine in Nevada, releasing an additional $5.1 million in cash (San Francisco, Sonora).
  • Canuc Resources Corp. received conditional approval from the TSX Venture Exchange for the previously announced acquisition of Circle Energy Ltd., a company with six oil prospective sections in Saskatchewan (San Javier, Sonora).
  • Excellon Resources Inc. entered into an option agreement with Wallbridge Mining Co. to sell the Beschefer project in Canada (Platosa, Durango).

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

On the image above, epidote veinlet with feld-K halo in andesitic volcanic rocks in a porphyry-Cu prospect in Jalisco. Picture by Jorge Cirett.

Highlights on the Third Week of September, 2018. Mining and Exploration News in Mexico

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On the image above, weakly silicified ridge on strongly argillitized volcanic rocks and minor quartz veining in clay pit in Hidalgo (Man-made produced differential erosion). Picture by Jorge Cirett.

By Jorge Cirett

During the 38th week of the year (September 17th to September 23rd, 2018), at least 24 press releases were announced by companies working in Mexico. Prize Mining, Kootenay, Silver Viper and Radius released advances in exploration. Excellon and Consolidated Zinc released news on mining. Prospero, Oceanus, Sable, Avino and Advance Gold reported news on financing. Capstone, Goldplay, Gold Resource, Excellon, Southern Silver, Endeavour and SilverCrest reported on development of its properties. Defiance Silver, and Valoro are to merge, Arian Silver is to change name whereas Kootenay and Radius reported deals on properties. ON MEXICO ISSUES, Goldcorp opened a health clinic in Zacatecas. ON EXPLORATION, in Sonora, Silver Viper started drilling on the Rubi-Esperanza claims of La Virginia project. In Chihuahua, Radius Gold is to drill the Amalia property. In Coahuila, Prize Mining initiated drilling at Manto Negro. ON MINING Excellon commented on production issues at Platosa, while Consolidated Zinc completed the first ore shipment from its Plomosas mine. ON FINANCING, Prospero Silver completed the private placement financing for CAD$356 K with Fortuna Silver. Oceanus raised $750 K. Sable entered a bought deal private placement for $2M. Avino Silver announced the pricing of US$4 M of an underwritten public offering. Advance Gold filed documents closing a financing for $255.3 K. ON RESOURCES AND DEVELOPMENT, Capstone, Goldplay, Gold Resource, Excellon, Southern Silver and Endeavour released drilling results aimed to better define or increase the resource base on their properties. SilverCrest presented an updated mineral resource estimate on its Las Chispas project. ON DEALS AND CORPORATE ISSUES, Defiance Silver and Valoro Resources signed a LOI on a merger. Kootenay optioned the Copalito property in Sinaloa. Arian Silver is to change name to Alien Metals. Pan American optioned the Amalia property in Chihuahua.

ON MEXICO ISSUES

  • GoldCorp opened a rural clinic in Mazapil, Zacatecas. With the investment of $40 M pesos GoldCorp executives opened the Unidad Médica Regional (Regional Medical Unit) in the Cedros community, within the Mazapil municipality of Zacatecas. The unit will be manned by IMSS-Prospera personnel, was presented as the most equipped rural clinic in the country, and is to provide 24 hours medical service to more than 2300 inhabitants.

ON EXPLORATION

  • Prize Mining Corp. initiated a 3,000 m diamond drilling program at its Manto Negro project in Coahuila. The program is focused on the El Granizo and Pilar Grande areas, which are 18 km apart, to test high-grade copper and silver surface oxide deposits.
  • Kootenay Silver Inc. presented encouraging rock-chip results from its recently optioned Copalito property in Sinaloa. Highlighted samples returned: 1.0 m @ 0.23 g/t Au, 104 g/t Ag, 0.13% Pb, 0.67% Zn; 1.5 m @ 0.50 g/t Au, 32 g/t Ag, 0.85% Pb, 0.40% Zn; 1.9 m @ 2.36 g/t Au, 50 g/t Ag, 0.50% Pb, 0.72% Zn; 1.5 m @ 0.45 g/t Au, 122 g/t Ag; 1.5 m @ 0.11 g/t Au, 1,700 g/t Ag, 0.26% Pb, 0.07% Zn; 1.0 m @ 0.40 g/t Au, 1,030 g/t Ag, 0.08% Pb, 0.10% Zn on La Chiva vein, 2.0 m @ 0.02 g/t Au, 474 g/t Ag, 0.26% Pb, 0.87% Zn; 1.10 m @ 0.15 g/t Au, 309 g/t Ag; 0.11% Pb on the Agua vein and 1.0 m @ 1.23 g/t Au, 1,155 g/t Ag; 0.96% Pb, 1.68% Zn; 1.0 m @ 1.82 g/t Au, 396 g/t Ag, 0.70% Pb, 1.17% Zn; 1.9 m @ 0.04 g/t Au, 301 g/t Ag; 0.04% Pb, 0.06% Zn on the 5 Señores vein.
  • Radius Gold Inc. announced the arrival of two drill rigs and commencement of drilling at its Amalia property in Chihuahua. “The drill program is operated by Radius and funded by Pan American Silver, under a joint venture agreement”. The targets to be tested are Campamento, Guadalupe and Dulces. The three comprise a continuum from high level to deeper epithermal mineralization in rough terrain, with stockwork zones, structurally controlled breccias and veins with both bulk mining and high-grade targets.
  • Silver Viper Minerals Corp. announced the completion of a drill camp and the initiation of drilling at the La Virginia project in eastern Sonora. Phase I drilling will be concentrated on the Rubi-Esperanza group of claims, with a combination of confirmation drilling (25%) over known mineralized trends and exploration drilling (75%) on untested targets. “Confirmation holes are planned in and around the historic La Virginia and Con Virginia workings and seek to confirm previously reported widths and grades of the main mineralized trend. These holes are designed to complement existing data, testing gaps in the previous work and testing the main trends for continuity and grade. Exploration holes are planned for nearby prospect areas: La Colonia, La Cascada and El Rubi. Additional prospects may be tested during Phase I as the campaign progresses”.

ON MINING

  • Excellon Resources Inc. anticipates “production in the quarter to be approximately 300,000 AgEq ounces due to operational issues related to surveying and planning personnel and lower byproduct prices. The operational issues have now been addressed and the operation is getting back on track”.
  • Consolidated Zinc Ltd. completed the first shipment of ore from its Plomosas mine in Chihuahua. “The Company plans to deliver 100 tonnes per day to the Santa Eulalia concentrator for the rest of this month for processing. Thereafter the Plomosas mine will scale up operations in order to deliver feed to the concentrator at or above 10,000 tonnes per month within nine months”.

ON FINANCING

  • Prospero Silver Corp. completed its recently announced private placement financing with Fortuna Silver Mines Inc., raising aggregate gross proceeds of CAD$356 K to test Prospero’s Bermudez project in Chihuahua.
  • Oceanus Resources Corp. closed a non-brokered private placement, raising $750K (El Tigre, Sonora).
  • Sable Resources Ltd. entered into an agreement with Haywood Securities Inc. in a bought deal private placement for total gross proceeds of $2 M (Margarita, Chihuahua).
  • Avino Silver & Gold Mines Ltd. announced the pricing of 6.2 M common shares and an equal amount of warrants at US$0.65 per share and associated warrant at US$0.80. The shares amount to US$4 M of underwritten public offering (Avino, Durango).
  • Advance Gold Corp. filed documents on the TSX to close its previously announced private placement financing for gross proceeds of $255.3 K. The financing was effected with two insiders of the company (Tabasqueña, Zacatecas).

ON RESOURCES AND DEVELOPMENT

  • Capstone Mining Corp. disclosed high-grade results from step-out drilling at its Cozamin mine in Zacatecas, which are to be included in a re-estimation of mineral resources later this year. Since the last estimation on March 2018, Capstone has drilled 46 additional holes, with drill intercepts underpinning the decision to elaborate the new resource estimation. Selected true width intercepts comprise 15.4 m @ 3.88% Cu, 0.12% Zn, 0.01% Pb, 63 g/t Ag, 0.02 g/t Au; 8.0 m @ 2.08% Cu, 0.07% Zn, 0.01% Pb, 70 g/t Ag, 0.15 g/t Au; 17.1 m @ 2.19% Cu, 0.07% Zn, 0.01% Pb, 39 g/t Ag, 0.01 g/t Au; 14.8 m @ 5.34% Cu, 0.8% Zn, 0.03% Pb, 112 g/t Ag, 0.05 g/t Au; 9.7 m @ 2.26% Cu, 0.07% Zn, 0.01% Pb, 29 g/t Ag.
  • Goldplay Exploration Ltd. released additional results from sampling historical core drill holes (2010) from its San Marcial project in southern Sinaloa. “The new results expand known mineralization 200 meters down dip beyond the historic NI 43-101 resource area…” and delineate a new discovery subparallel to the main zone. Highlighted true width intervals comprise 4.0 m @ 63 g/t Ag, 1.0% Pb, 1.3% Zn, 0.07 g/t Au; 9.0 m @ 73 g/t Ag, 0.09% Pb, 0.2% Zn, 0.07 g/t Au; 3.0 m @ 139 g/t Ag, 0.03% Pb, 0.15% Zn, 0.04 g/t Au (including 1.0 m @ 501 g/t Ag, 0.09% Pb, 0.4% Zn, 0.08 g/t Au); 2.0 m @ 120 g/t Ag, 0.2% Pb, 0.7% Zn, 0.1 g/t Au; 16.0 m @ 57 g/t Ag, 0.1% Pb, 0.4% Zn, 0.04 g/t Au. The new mineralization style discovered is comprised of pervasive stockwork of millimetric veins hosted by a silicified epiclastic volcanic sequence, with a core length of 47 m showing grades from 0.2 to 1.1 g/t Au.
  • Gold Resource Corp. presented drill highlights from its Alta Gracia 2018 drill program in Oaxaca. The Alta Gracia project hosts the Mirador mine, located 16 km NW from the company’s Aguila project and mineral processing plant. Core length highlighted intervals on the Independencia and Victoria veins comprise 10.30 m @ 0.85 g/t Au, 1,052 g/t Ag; 5.18 m @ 0.55 g/t Au, 241 g/t Ag; 9.59 m @ 0.36 g/t Au, 430 g/t Ag; 2.70 m @ 1.67 g/t Au, 902 g/t Ag. Gold Resource “believes it has discovered a wide, high-grade silver ore shoot within the Independencia vein”, which is located 500 m SW along strike from its Mirador Mine.
  • Excellon Resources Inc. informed on expansion, infill and definition drill results from the 623 Manto and Rodilla manto areas on its Platosa mine in Durango. Highlighted core length intervals comprise 10.5 m @ 0.1 g/t Au, 397 g/t Ag, 2.6% Pb, 4.1% Zn; 4.7 m @ 0.1 g/t Au, 266 g/t Ag, 2.6% Pb, 2.5% Zn; 9.1 m @ 122 g/t Ag, 2.0% Pb, 0.5% Zn; 9.0 m @ 56 g/t Ag, 0.6% Pb, 1.1% Zn; 2.7 m @ 0.4 g/t Au, 783 g/t Ag, 8.2% Pb, 11.1% Zn; 3.5 m@ 489 g/t Ag, 1.5% Pb, 2.3% Zn; 5.5 m @ 2.9 g/t Au, 1,700 g/t Ag, 15.4% Pb, 21.4% Zn; 15.1 m @ 0.4 g/t Au, 1,014 g/t Ag, 10.9% Pb, 26.0% Zn; 6.5 m @ 268 g/t Ag, 4.0% Pb, 4.9% Zn. These results were not included on the previous resource estimate (Sept 7, 2018) and represent the potential for additional mineral resources.
  • Southern Silver Exploration Corp. informed additional metallurgical test work on the Skarn Front deposit from the Cerro Las Minitas Project has resulted in both the successful separation of a potential “saleable grade” copper concentrate as well as the generation of a cleaner zinc concentrate grading above 50% zinc without sacrificing zinc, lead or silver recoveries.The test work on the Skarn Front deposit recovered three concentrates: Cu-Ag; Pb-Ag and Zn-Ag (for recoveries of 67.7% Cu, 82.5% Pb, 89.5% Zn and 90.6% Ag).
  • Endeavour Silver Corp. reported high-grade infill drilling results from its Terronera property in Jalisco. Some highlighted true width intercepts: 3.9 m @ 2.6 g/t Au, 86 g/t Ag; 3.4 m @ 2.1 g/t Au, 136 g/t Ag; 3.3 m @ 0.9 g/t Au, 782 g/t Ag; 5.3 m @ 1.2 g/t Au, 783 g/t Ag; 4.2 m @ 0.7 g/t Au, 524 g/t Ag; 6.1 m @ 0.9 g/t Au, 1,297 g/t Ag; 7.7 m @ 4.8 g/t Au, 169 g/t Ag; 9.8 m @ 2.4 g/t Au, 197 g/t Ag; 3.7 m @ 4.5 g/t Au, 102 g/t Ag; 8.0 m @ 3.0 g/t Au, 85 g/t Ag; 5.6 m @ 7.1 g/t Au, 185 g/t Ag; 4.6 m @ 3.1 g/t Au, 131 g/t Ag; 8.2 m @ 3.4 g/t Au, 49 g/t Ag; 8.7 m @ 6.2 g/t Au, 90 g/t Ag; 1.8 m @ 13.2 g/t Au, 340 g/t Ag.  “Mineralization in the Terronera vein has been intersected over 1400 m long by 500 m deep, and it remains open at depth”.
  • SilverCrest Metals Inc. released an updated mineral resource estimate for its Las Chispas property in Sonora. Inferred Mineral Resources are estimated at 4.3 M tonnes grading 3.68 g/t Au, 347 g/t Ag, or 623 g/t AgEq, containing 551.8 K Oz Au, 48.3 M Oz Ag, or 86.7 M Oz AgEq, using a 150 AgEq cut-off grade and minimum true vein width of 1.5 M. “The combination of the Area 51 zone (Babicanora Vein) and adjacent Babicanora Norte Vein hosts a combined Inferred Resource of 1.6 million tonnes grading 6.97 gpt gold and 568 gpt silver, or 1,091 gpt AgEq containing 56.3 million ounces of AgEq”. Eight of the 30 veins in the district were used for the updated resource estimate. .

ON DEALS AND CORPORATE ISSUES

  • Defiance Silver Corp. and ValOro Resources Inc. entered into a letter of intent (LOI) to complete a friendly merger, on which the combined company will continue under the name of Defiance Silver Corp.. Defiance owns the San Acacio silver project in Zacatecas, whereas ValOro owns the Tepal gold-copper project in Michoacan. ValOro shareholders will receive 0.71 common shares of Defiance for each share of ValOro held.
  • Kootenay Silver Inc. recently optioned the Copalito property in Sinaloa. Kootenay can acquire 100% ownership on the concession by making staged payments over a 4 year period totaling an aggregate of US$985 K. The property consists of seven concessions totaling 3,700 hectares, with a classic low sulfidation epithermal vein system with numerous small old workings and no evidence of historic exploration drilling.
  • Arian Silver Corp. informed on a favorable vote in its annual general meeting to change the name of the company to Alien Metals Ltd. (San Celso, Zacatecas).
  • Radius Gold Inc. granted Pan American Silver Corp. the option to earn up to an initial 65% interest in the Amalia project in Chihuahua, by making staged cash payments to Radius totaling US$1.5M (US$100 K already paid) and expending US$2 M in exploration over four years. Pan American can earn an additional 10% by advancing the property to preliminary feasibility study. Initially Radius will be the project operator.

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

On the image above, weakly silicified ridge on strongly argillitized volcanic rocks and minor quartz veining in clay pit in Hidalgo (Man-made produced differential erosion). Picture by Jorge Cirett.

Highlights on the First Week of September, 2018. Mining and Exploration News in Mexico

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By Jorge Cirett

During the 36th week of the year (September 3rd to September 9th, 2018), at least 18 press releases were announced by companies working in Mexico. Prize Mining, Minaurum, Azure, and Kootenay released advances in exploration. Telson Mining released some clarifications to its operating Q2 2018 results. Prospero reported news on financing. Goldplay, Consolidated Zinc, Torex, Southern Silver, Impact Silver, Magellan Gold, and Aura Minerals reported on development of its properties. Golden Minerals, Sonoro and GoGold reported deals on properties or royalties. ON MEXICO ISSUES, AMLO announced cabinet posts in Economy, including the new Sub-secretary of Mining, Francisco Quiroga. The Mexican Core Shack now counts with displays from three properties in Chihuahua, two in Durango, two in Estado de Mexico, one in Guerrero and one in Puebla. ON EXPLORATION, In Sonora, Minaurum has resumed drilling at its Alamos Silver property. Azure reported high-grade surface results from its Oso Negro property and Kootenay released surface sampling results from its Malé project. In Coahuila Prize Mining announced a coming drill campaign on its Manto Negro project.  ON MINING Telson Mining presented some clarifications on its Q2 report, and some figures on production costs from the Campo Morado mine.  ON FINANCING, Prospero Silver announced a strategic investment by Fortuna Silver for US$270 K. ON RESOURCES AND DEVELOPMENT, Goldplay released results from its San Marcial project in Sinaloa. Consolidated Zinc is to start mining in Plomosas, Chihuahua. Torex presented an updated technical report and a new mine plan on its El Limon-Guajes property in Guerrero. Southern Silver presented assay results from drilling at its Cerro Las Minitas property in Durango. Impact Silver announced the discovery of a new ore shoot on its Zacualpan property in Estado de Mexico. Magellan is planning to mine on its El Dorado property in Nayarit. Aura Minerals filed a FS and technical report on the restarting of its Aranzazu mine in Zacatecas. ON DEALS AND CORPORATE ISSUES, Golden Minerals sold its remaining interest on the Celaya property in Guanajuato to The Electrum Group for US$3 M. Sonoro optioned an inner concession within its Cerro Caliche property for US$100 K in two payments. GoGold sold its 2% NSR on the Santa Gertrudis project in Sonora to Metalla Royalty.

ON MEXICO ISSUES

  • Andres Manuel Lopez Obrador (AMLO), the president elect in Mexico, announced cabinet posts within the Secretaría de Economía (Bureau of Economy) for its incoming government. Graciela Márquez, as Secretary, is to be supported by Luz Maria de la Mora in Subsecretaría de Comercio Exterior (Foreign Commerce), Ernesto Acevedo Hernández in Subsecretaria de Industria y Comercio (Industry and Commerce), and Francisco Quiroga, on charge of the Subsecretaría de Minería (Mining). Francisco Quiroga was director of International Planning for Grupo Villacero, and worked for a couple of years at Arcelor Mittal México. He has master degrees from Yale and New Zealand, with expertise in international metal markets, steel, commodities and mining, as well as anti-dumping practices and industry. The Mexican Core Shack added images of drill core from Almaden’s Ixtaca project in Puebla, at https://gambusinoprospector.com/mexican-core-shack/puebla/ixtaca/ . The Mexican Core Shack now displays three properties in Chihuahua, two in Durango, two in Estado de Mexico, one in Guerrero and one in Puebla.

ON EXPLORATION

  • Prize Mining Corp. commenced the phase II exploration program on its Manto Negro project in Coahuila. This phase will consist of 3,000 m of diamond drilling, “3D modeling of drill intersections and artisanal underground workings”, a GIS compilation and preliminary metallurgical test work. At El Granizo, “strong copper mineralization is exposed on surface for a strike length of 550 metres and dips moderately to the southwest. Mineralization is hosted in the San Marcos red-bed sandstone close to the contact with the overlying Cupido limestone”. At Pilar Grande drilling will test a 200 by 50 m area containing the underground workings.
  • Minaurum Gold Inc. has resumed drilling at the Alamos Silver project in Sonora. The 5,000 m (or greater) drill program is to focus in seven untested veins exposed at high structural levels in down-dropped blocks outside of the historic mining corridor. “One hole will test the Minas Nuevas vein at depth and a second hole will test the Púlpito and Cotera vein zone projections. Eight more holes are planned on targets on the completely virgin eastern side of the historic La Quintera – Promontorio vein zone, including the Tigre, Ana, and Amalia vein zones, and the breccia body located south of Amalia and Tigre; as well as the Promontorio Sur vein zone to the south of Promontorio vein. The drill program will be expanded as new targets are generated.”
  • Azure Minerals Ltd. reported high grade assays from surface sampling at its Oso Negro property in Sonora. The project comprises a 1,119 ha concession application and an adjoining 156 ha concession purchased for US$35 K. Both concessions contain epithermal mineralization like quartz veins and quartz stockworks in zones of strong alteration, with galena and sphalerite within the quartz veins, which can attain widths of up to 5 m and lengths of 800 m. Of 88 samples collected, 37 returned over 100 g/t Ag, including 9 samples over 1,000 g/t Ag, and a peak of 2,680 g/t Ag. Of 88 samples collected, 37 samples returned over 1.0 g/t Au, including 7 samples over 5.0 g/t Au and up to 100.5 g/t Au.
  • Kootenay Silver Inc. released additional high-grade sampling results on its Malé project in Sonora. Thirty three sample collected from old pits and small trenches returned 19 samples with values over 1.0 g/t Au, with the highest running 12.1, 17.0, 24.7 and 36.0 g/t Au. “The Malé gold project is a granitic-hosted gold dominant polymetallic vein and vein stockwork system covering an area of 1500 x 1500 meters with numerous showings highly anomalous in gold…..Mineralization occurs as narrow veins, veinlets and stockworks of quartz with or without sulphides within structures projecting in a dominant northeast trend and a secondary northwest trend”.

ON MINING

  • Telson Mining Corp. presented some clarifications to its Q2 2018 financial report (please see press release for details). The “Campo Morado Mine has achieved direct site costs for mining, milling and administration during Q2 of approximately US$56.6, US$51.6 and US$51.8 per tonne respectively for, April, May and June. These current direct site costs are approximately 36% lower than the estimated direct site costs of US$72.26 per tonne used for the same categories in Telson’s recently published independent Preliminary Economic Assessment and approximately 40% lower than the previous operator’s last year of production during 2014”.

ON FINANCING

  • Prospero Silver Corp. arranged a US$270 K strategic investment from Fortuna Silver Mines Inc. Fortuna currently owns 20.3% of Prospero current and outstanding shares, and this private placement is to take that proportion to 26.9%. The proceeds will be allocated to test the Bermudez project in Chihuahua with a 3-hole 1,500 m drill program.

ON RESOURCES AND DEVELOPMENT

  • Goldplay Exploration Ltd. disclosed additional results from sampling of the historical core drill holes completed in 2011 on the project San Marcial, in Sinaloa. Highlighted true width (TW) new results from two holes comprise 53.6 m @ 57 g/t Ag, 0.1% Pb, 0.4% Zn (including 5.6 m @ 253 g/t Ag, 0.2% Pb, 0.6% Zn); 46.5 m @ 57 g/t Ag, 0.3% Pb, 0.4% Zn (including 15.5 m @ 115 g/t Ag, 0.5% Pb, 0.7% Zn, same that include 3.25 m @ 411 g/t Ag, 1.9% Pb, 2.2% Zn).
  • Consolidated Zinc Ltd. is to start mining at its Plomosas project in Chihuahua. “The CZL Board has approved the development plan and mining will commence immediately with monthly receipts commencing mid October 2018”. CZL secured a finance package by way of convertible notes. The mined ore will be processed at Grupo Mexico’s plant in Santa Eulalia, Chihuahua, and the concentrate is to be sent to the same group’s smelter in San Luis Potosi. CZL “is confident that the first cashflow can be achieved for a capital cost less than US$500,000 and the C1 operating costs are expected to be less than US$0.50/lb Zinc after by-product credits”.
  • Torex Gold Resources Inc. completed an updated technical report that includes a life of mine plan (LOM) of nine years and an increased average gold production of 430 K Oz Au per year, from 2019 to 2023 at its Limón-Guajes mine in Guerrero.” The TR also contains an updated Media Luna Preliminary Economic Assessment (PEA), with an after-tax NPV (5%) of $582M, and an after-tax IRR of 27%”.  El Limon Guajes updated TR, Sept 20181
  • Southern Silver Exploration Corp. reported assay results from initial core drilling on the 12,000 m 2018 drill program at its Cerro Las Minitas property in Durango. Highlighted true width (TW) intervals comprise 15.1 m @ 280 g/t Ag, 0.18% Cu, 0.9% Pb, 0.1% Zn (including 4.4 m @ 598 g/t Ag, 0.4% Cu, 2.1% Pb, 0.1% Zn) on the Skarn Front deposit, and 0.6 m @ 79 g/t Ag, 0.4 g/t Au, 1.2% Cu, 0.1% Pb, 14.1% Zn; 2.0 m @ 88 g/t Ag, 0.3 g/t Au, 0.2% Cu, 1.1% Pb, 2.6% Zn in Las Victorias zone, which extend mineralization for over 100 m to the southeast.
  • Impact Silver Corp. announced the discovery of a new ore shoot on the Lipton vein of the Guadalupe mine at its Zacualpan property in Estado de Mexico. To date the new zone has been drilled over a length of 120 m and vertical distance of 80 m, remaining open in all directions. Some of the highlighted true width intervals comprise 10.57 m @ 201 g/t Ag, 0.13 g/t Au, 0.2% Pb, 0.5% Zn (including 4.18 m @ 381 g/t Au, 0.09 g/t Au, 0.4% Pb, 1.1% Zn); 7.74 m @ 466 g/t Ag, 0.13 g/t Au, 0.5% Pb, 1.1% Zn; 8.82 m @ 306 g/t Ag, 0.11 g/t Au, 0.2% Pb, 0.5% Zn; 1.53 m @ 240 g/t Ag, 0.04 g/t Au, 0.7% Pb, 2.5% Zn; 2.87 m @ 308 g/t Au, 0.19 g/t Au, 0.3% Pb, 0.4% Zn.
  • Magellan Gold Corp. is focused on advancing El Dorado project in Nayarit towards production, planning to truck the ore to the SDA mill for processing. “The drilled resource appears to be sufficient to support an underground mining operation for five years at a mining rate of 100 tonnes per day….”. Magellan is applying for the necessary environmental and blasting permits, as well as quotes for contract mining.
  • Aura Minerals Inc. filed the NI-43-101 Feasibility Study and Technical Report on the Aranzazu mine in Zacatecas.

ON DEALS AND CORPORATE ISSUES

  • Golden Minerals Co. has sold its remaining interest on the Celaya property in Guanajuato, to The Electrum Group LLC. Golden Minerals is to receive a payment of US$3.0 M for selling 100% of its remaining mining concessions and related interests in the Celaya project located in Guanajuato.
  • Sonoro Metals Corp. optioned from a private owner the 9 ha “El Colorado” mining concession, within its Cerro Caliche project in Sonora. “The Option Agreement provides for Sonoro to acquire a 100% interest in El Colorado for total consideration to the Vendor of US$100,000, of which US$50,000 has been paid and the balance due in 6 months”. Seven thorough-going veins surrounded by quartz sotckwork areas and sheeted quartz veinlet zones present limited mining evidenced by tunnels, pits and trenches.
  • Metalla Royalty & Streaming Ltd. entered with GoGold Resources Inc. into an agreement to purchase a 2% net smelter return royalty on the Santa Gertrudis property in Sonora, for US$12 M in cash. The agreement is subject to a right of first refusal held by the owner of the project, Agnico Eagle Mines Ltd., right that has to be exercised with 45 days.

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

On the image above, argillitized volcanic rocks above the famous Vizcaína vein in the Pachuca District, Hidalgo. Picture by Jorge Cirett.