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

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By Jorge Cirett

During the 22nd week of the year (May 27th to June 2nd,2024), companies working in Mexico posted at least 29 press releases. One company informed of drilling on its property and six companies released financial results for Q1 2024. Two companies announced the opening/closing of financing rounds for C$10.28 M and one filed a prospectus to raise up to US$250 M. Two companies informed on drilling results from their advanced projects, one on the approval of key mining permits, another on an updated technical report and one more a clarification on a previous news release. Two companies reported on held AGM’s, another one on the date for a merger-voting AGM, one on plans for a copper spinout, one on an annual report and one more on a board member retirement. ON MEXICO ISSUES, presidential polls in Mexico are to define a centralized power government or a checks and balances political system. The mining industry will be strongly affected if the officialism candidate wins. Nearshoring and EV’s present an opportunity to copper producing Sonora. The New Mining Law has stalled the investment of more than US$4.5 billion in the country. ON EXPLORATION, In Sonora, Tocvan Ventures informed on drilling progress at Pilar. ON MINING, Impact Silver, Orogen Royalties, Bear Creek Mining, Minera Alamos, Santacruz Silver Mining and Luca Mining presented financial/operational results for Q1 2024. ON FINANCING, Impact Silver increased again its non-brokered private placement to C$10.2 M, Sailfish and Alamos Gold declared quarterly dividends. Inomin raised $80 K on the first tranche of financing. Mag Silver filed the base shelf prospectus to raise up to C$250 M in 25 months. ON RESOURCES AND DEVELOPMENT, Silver Storm and Prime Minig released drilling results from La Parrilla, in Durango, and Los Reyes, in Sinaloa, respectively. ON DEALS AND CORPORATE ISSUES, Argonaut Gold is to held a special meeting of shareholders to vote on the merger with Alamos Gold. First Majestic Silver released its 2023 annual report. Avino Silver and Guanajuato Silver released AGMS’s results. Minera Alamos informed on its purpose to create a copper developer/producer spinout in Central Sonora. Capstone Copper announced the retirement of Bob Gallagher. ON SOCIAL RESPONSIBILITY, First Majestic Silver and Fortuna Silver Mines published their 2023 ESG reports.

ON MEXICO ISSUES

  • This Sunday June 2nd presidential polls are to be held in Mexico, same that will define the bearing the country is to follow in the next six years and probably beyond that. At stake are the centralized government system with unrestricted power to the presidency sought by the current incumbent Andres Manuel Lopez Obrador, and the checks and balances system between the different government branches (executive, legislative and judicial) sought by the coalition opposition parties. Besides the obvious influence on the economy, if the officialism party´s Claudia Sheinbaum candidate wins, expect a tight grip on the mining industry from the open supporter of socialist economies, like Cuba and Venezuela.
  • Nearshoring and electrical vehicles present an opportunity for copper producing Sonora, according to David Ramos Félix, president of the local AIMMGM chapter in the State that produces more than 70% of the red metal in the country
  • Restrictions brought by the new Mining Law approved by Fast Track procedures in May of 2023 have delayed the investment of more than US$4.5 billion, according to Karen Flores, president of the Cámara Minera de México (CAMIMEX). The freezing of at least 220 environmental permits is hindering the investments that could generate employment to close to 50 thousand families, with salaries in the metallic mining sector that are 85% above the national average.

ON EXPLORATION

  • Tocvan Ventures Corp. informed 2,200 m have been completed on the reverse circulation (RC) drill program at its Pilar property in Sonora. Results for nine holes have been released so far.

ON MINING

  • Impact Silver Corp. announced financial and operating results for Q1 2024. The company reported revenue of $4.3 M from the Guadalupe mine in Estado de Mexico and $1 M from the start-up operations at Plomosas in Chihuahua. There was a net loss during the period of $3.1 M, primarily on upgrading facilities at the Plomosas mine. At the Zacualpan/Guadalupe mine in Estado de Mexico 31.7 K tonnes were milled @ 161 gpt AgEq. The Plomosas mine continued gradual start-up of operations, processing 3.6 K tonnes @ 15.3% Zn. The mine is expected to reach design capacity of 200 tpd later in 2024.
  • Orogen Royalties Inc. reported Q1 results, including $1.48 M in royalty revenue generated from First Majestic’s Ermitaño mine in Sonora, representing 508 Oz AuEq. “During the current quarter, the mill processed 224,394 tonnes of ore compared to 233,601 tonnes processed last quarter. Average silver and gold head grades during the current quarter were 72 grams per tonne (“g/t”) and 3.16 g/t, respectively, compared to average silver and gold head grades of 106 g/t and 3.88 g/t, respectively, of the previous quarter. Silver and gold recoveries averaged 69% and 95%, respectively, compared to recoveries of 73% and 96% from the previous quarter”.
  • Bear Creek Mining Corp. reported interim consolidated financial results for Q1 2024. During the period, 106.4 K tonnes were mined at the Mercedes mine in Sonora, averaging 3.83 gpt Au, 109.3 K tonnes milled averaging 3.69 gpt Au, recovering 94% Au to produce 12,228 Oz Au, 44 K Oz Ag at cash cost $1,183 per Oz Au and an AISC of $1,588 per Oz Au. Total revenue in the period was $27.5 K M. “Updates to estimates of mineral reserves and mineral resources are tentatively expected before year end, pending completion of the first phase of the exploration and infill drilling campaign”.
  • Minera Alamos Inc. provided select financial highlights from its Q1 2024 and an operational update for the first five months of the year. Updated plans call for 20 K Oz Au averaging 0.63 gpt Au and mined at a 1.6:1 ratio and staked over a 12-month period. Further stockpiled 4.5 K Oz Au @ 1.0 gpt Au are to be processed during the same period. Mining and stacking operations are expected to commence in June and continue through H2 2024 and H1 2025. Total gold recovered and sold during the first quarter was 907 Oz Au, with inventory on the leach pad of 5,383 Oz Au. Cash and cash equivalents at the end of the period was $11.8 M, with a positive working capital of $18.2 M.
  • Santacruz Silver Mining Ltd. reported its financial and operating results for the first quarter 2024, including figures from its operations in Mexico. At Zimapan, in Hidalgo, 205.4 K tonnes were processed @ 82 gpt Ag, 0.29% Cu, 0.83% Pb, 2.29% Zn, recovering 74% Ag, 43% Cu, 79% Pb, 77% Zn, to produce 399.9 K Oz Ag, 256 tonnes Cu, 1,352 tonnes Pb, 3,643 tonnes Zn. During the period the company had US$52.6 M in revenue, 463 K in gross profit, cash and cash equivalents of US$4 M and working capital of US$7.1 M.
  • Luca Mining Corp. announced financial results for Q1 2024. During the period the company produced 4,297 Oz Au, 207.5 K Oz Ag, 791 tonnes Cu, 661 tonnes Pb, 3,068 tonnes Zn. The company achieved its first positive operating earnings with C$4.8 M in operating income and C$7.3 M in net income. Cash flow was C$4 M, with an AISC of US$1,325 and US$1,690 per Oz AuEq, expected to decrease at Tahuehueto and Campo Morado respectively, as ramp up production continues with the completion of construction at the former and completion of the improvement project at the latter (Tahuehueto, Durango; Campo Morado, Guerrero).

ON FINANCING

  • Impact Silver Corp. is amending and increasing its previously announced non-brokered private placement from C$8.2 M to C$10.2 M (Plomosas, Chihuahua).
  • Sailfish Royalty Corp. declared the second quarterly dividend for 2024, in the amount of US$0.0125 per common share (Gavilanes, Durango).
  • Alamos Gold Inc. declared a quarterly dividend of US$0.025 per common share (Mulatos, Sonora).
  • Inomin Mines Inc. announced the closing of the first tranche of its non-brokered private placement for gross proceeds of $80K (La Gitana, Oaxaca).
  • Mag Silver Corp. obtained receipt for the final short form base shelf prospectus filed with the securities commissions in all Canada and filed a registration statement with the United States Securities and Exchange Commission (SEC). The final shelf prospectus and registration statement will allow the company to offer up to US$250 M in common shares during the 25-month period of validity (Juanicipio, Zacatecas).  

ON RESOURCES AND DEVELOPMENT

  • Silver Storm Mining Ltd. announced further results from 3,039 m in 23 holes of its diamond drill program at La Parrilla mine in Durango. The results are from the Rosario mine, underneath and in proximity to previously mined stopes. The Rosario zone is “characterized by a sulphide-bearing quartz-carbonate vein hosted within a fault zone that extend down dip for 900 m, with a strike length of 2 km and true widths of up to 14 m”. Highlighted core length results comprise 3.84 m @ 73 gpt Ag, 2.2% Pb, 5.4% Zn (including 1.19 m @ 0.15 gpt Au, 123 gpt Ag, 3.7% Pb, 11.3% Zn); 4.83 m @ 0.16 gpt Au, 113 gpt Ag, 0.2% Cu, 1.4% Pb, 0.7% Zn; 5.23 m @ 0.25 gpt Au, 70 gpt Ag, 1.6% Pb, 1.8% Zn; 2.50 m @ 0.64 gpt Au, 68 gpt Ag, 0.6% Pb; 4.54 m @ 176 gpt Ag, 0.2% Pb (including 1.97 m @ 0.09 gpt Au, 176 gpt Ag, 0.2% Pb); 0.35 m @ 842 gpt Ag, 0.94% Cu, 24.8% Pb, 10.1% Zn; 3.91 m @ 0.38 gpt Au, 501 gpt Ag, 1.2% Pb, 1.2% Zn; 3.52 m @ 0.11 gpt Au, 48 gpt Ag, 2.1% Pb, 2.4% Zn; 1.47 m @ 469 gpt Ag, 1.89% Cu, 5.0% Pb, 2.7% Zn; 5.9 m @ 225 gpt Ag, 0.9% Pb, 0.7% Zn; 3.20 m @ 0.47 gpt Au, 111 gpt Ag, 1.5% Pb, 2.0% Zn; 6.25 m @ 532 gpt Ag, 18.1% Pb, 5.4% Zn.
  • Prime Mining Corp. reported expansion drilling results from the Guadalupe East area at Los Reyes project, in Sinaloa. Highlighted true width intercepts comprise 3.5 m @ 2.67 gpt Au, 327 gpt Ag; 1.1 m @ 4.06 gpt Au, 664 gpt Ag; 0.3 m @ 6.88 gpt Au, 5 gpt Ag; 1.5 m @ 2.38 gpt Au, 419 gpt Ag; 1.0 m @ 3.71 gpt Au, 475 gpt Ag; 0.7 m @ 20.50 gpt Au, 2,620 gpt Ag; and core length intervals comprising 2.4 m @ 1.29 gpt Au, 180 gpt Ag (including 1.3 m @ 2.13 gpt Au, 302 gpt Ag). “The target of this drilling at Guadalupe East was high-grade antithetic veins stepping out to the west. Antithetic veins are footwall and hanging wall splays that intersect the main Estaca vein at Guadalupe East”.
  • Sierra Madre Gold and Silver Ltd. announced the approval by SEMARNAT (Environmental Agency) of the modifications to the existing operating permit for the Guitarra mine and mill complex in Estado de Mexico. The permit allows for dry stack tailings deposition at the active tailings facility site, construction of a tailings filter plant, paste backfill using tailings in the underground mine and 58 surface drilling pad locations.
  • Argonaut Gold Inc. filed an updated technical report for the San Agustin property in Durango, which commenced operations in 2017. Reports highlights include gold production of 89 K Oz Au from April 2024 to 2026 at cash cost US$1,702 per Oz Au and a pre-tax and after-tax net present value (5%) of US$30M.
  • Luca Mining Corp. issued a clarification on its May 21, 2024 news release regarding the high-grade gold mineralization over significant widths at the Tahuehueto mine in Durango. “The mineralization occurs in shoots branching off the main Creston vein at Underground Level 23. Creston is one is one of two main structures currently being mined. Regular geological mapping, as part of mining activities, and channel sampling at this level confirmed the presence of breccia ore shoots up to 20 meters wide”. Channel sampling of 494 channel samples on Level 23 average 3.30 gpt Au, 27 gpt Ag, 0.22% Cu, 0.8% Pb, 1.4% Zn,

ON DEALS AND CORPORATE ISSUES

  • Argonaut Gold Inc. has filed its management information circular for its annual general and special meeting of the holders of common shares to be held on June 28, 2024. At the meeting Argonaut Shareholders will be asked to vote on the statutory plan of arrangement under which Argonaut will become a wholly-owned subsidiary of Alamos Gold Inc. (La Colorada, Sonora).
  • First Majestic Silver Corp. released its 2023 Annual report titled “20 Years. The Silver Evolution”. The report covers the company’s “vision and mission, its values, its commitment to achieving its goals, and its 20-year evolution to becoming one of the world’s largest silver producers”.
  • Avino Silver & Gold Mines Ltd. reported voting results from its annual general meeting (AGM) held on May 30. 2024. The company also announced the retirement of Jasman Yee from the board of directors (Avino, Durango).
  • Guanajuato Silver Company Ltd. announced its 2024 annual general meeting (AGM) is to be held on June 28, 2024 (El Cubo, Guanajuato).
  • Minera Alamos Inc. informed its plans to advance the creation of a “separate copper developer/producer focused on low capital intensity copper development projects”. The company considers the combination of Los Verdes and Suaqui Verde projects allow for further consolidation of similar assets in the region.
  • Capstone Copper Corp. announced Mr. Robert Gallagher has retired from the board of the directors (Cozamin, Zacatecas).

ON SOCIAL RESPONSIBILITY

  • First Majestic Silver Corp. released its 2023 Sustainability Report summarizing the company’s environmental, social and governance (ESG). Highlighted in the report are the safety performance, diversity and inclusion, carbon reduction, community involvement, ESG recognition and community investments (San Dimas, Durango).
  • Fortuna Silver Mines Inc. published its sixth annual sustainability report detailing the company’s performance on key environmental, social and governance (ESG) indicators during 2023 (San Jose, Oaxaca).

On the image below: Potassic feldspar alteration on rim of dark veinlet on intrusive rock in HQ core (6.3 cm across) from a project in the Sonoran Desert. Picture by Jorge Cirett.

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

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By Jorge Cirett                                             

During the 20th week of the year (May 13th to May 19th,2024), companies working in Mexico posted at least 27 press releases. One company released drilling results in its property, another “the range and grade of the exploration target” and one more a novel geological interpretation for its project. Nine companies released production results for Q1 2024. Seven companies announced the opening/closing of financing rounds for C$19.5 M, one more a prospectus to raise up to US$250 M, and another one the extension of warrants. Two companies informed on a deal to process tailings. ON MEXICO ISSUES, the Mexican mining industry is paralyzed by the lack of a rulebook to enforce the new mining law. ON EXPLORATION, In Sonora, Tocvan Ventures released drilling results from Pilar. In Chihuahua. Mammoth Resources informed on the “range of the quantity and grade of the exploration target” at Tenoriba. In Zacatecas, Zacatecas Silver is using a new geological study for targeting at El Cristo. ON MINING, Sierra Metals, Prime Mining, Gold Royalty, Golden Minerals, SilverCrest Metals, Discovery Silver, Americas Gold and Silver, US Antimony, and Argonaut Gold presented financial/operational results for Q1 2024. ON FINANCING, Impact Silver increased its non-brokered private placement to C$8.2 M, Starcore International Mines arranged a non-brokered private placement for C$500 K. Mag Silver filed a prospectus that will allow the company to offer up to $250 M in shares, Silver Spruce closed a first tranche of its financing for C$300 K, Vortex Metals upward corrected the amount raised on its last financing to C$1.77 M. Mag Silver announced its intention to repurchase up to 10% of its stock. Orex Minerals raised C$337 K on the first tranche of its non-brokered private placement. Oroco Resources is to raise up to C$6 M. Aztec Minerals is to extend the expiry date of some warrants. Silver Viper closed the last tranche of its financing for C$338 K. ON RESOURCES AND DEVELOPMENT, no relevant news. ON DEALS AND CORPORATE ISSUES, Starcore International Mines teamed up with Kappes, Cassiday and Associates on the reprocessing of tailings at El Oro. ON SOCIAL RESPONSIBILITY, Endeavour Silver highlighted progress on its three-year sustainability strategy.

ON MEXICO ISSUES

  • The mining industry in Mexico is paralyzed by the lack of a rulebook to enforce the Mining Law approved last year. The rulebook (reglamento) was supposed to be set in force six months ago, and there is still no date for its publication. Adding to the lack of rules for the industry is the proposal to forbid open pit mining, which would directly affect 60% of mining production.

ON EXPLORATION

  • Tocvan Ventures Corp. announced drill results from its Pilar project in Sonora. Highlighted hole length reverse circulation intervals on one drill hole comprise 76.25 m @ 0.75 gpt Au, 1 gpt Ag (including 56.43 m @ 1.00 gpt Au, 1 gpt Ag, which includes 9.15 m @ 5.25 gpt Au, 3 gpt Ag, which includes 1.52 m @ 26.79 gpt Au, 5 gpt Ag). The results are from a vertical hole testing the down-dip projection of surface mineralization, intersecting several zones of low-grade Au and Ag and one high-grade zone.
  • Zacatecas Silver Corp. completed additional field work at its Zacatecas property, including a detailed petrographic review of the previous diamond drill core at El Cristo. The El Cristo vein system is the NW strike extension of the Veta Grande vein system, with a strike length of over 3 km on the company’s ground, comprising multiple veins within a dilation jog that is up to 650 m wide. The company’s petrographic study confirmed most holes intercepted oxidized vein material, opening exploration for un-leached veins at depth. Drill pad permits to test below the 70 to 110 m depth expected oxidization limits are being sought.
  • Mammoth Resources Corp. informed its geologists identified a target for further exploration. The study proposes the drilling of three areas, Carneritos, Masuparia and Moreno, with potential (“the range of the quantity and grade of the Exploration Target”, not a resource estimate) for over 1.7 M Oz AuEq, including 53.3 M tonnes grading 0.59 gpt AuEq of oxide-mixed and 42.8 M tonnes grading 0.61 gpt AuEq.

ON MINING

  • Sierra Metals Inc. reported first quarter 2024 consolidated financial results. Revenue was 63.14 M for the period, ending with $11.22 M in cash and cash equivalents. Cash costs at the Bolivar mine in Chihuahua was $2.44 per Lb CuEq and an AISC of $3.12 per Lb CuEq. At Bolívar the company has 5.6 M tonnes of reserves, good for three years or mining, and 18.4 M tonnes of resources that can last for 10 years. Production guidance for 2024 is 23.9 to 27.6 M Lb Cu, 650 to 750 K Oz Ag, 8,000 to 9,000 Oz Au.
  • Prime Mining Corp. reported operating and financial results for “the quarter ended March 31, 2023” (probable typo on press release). The company had $27.9 M in cash at the end of the period, with $2.2 M in total liabilities. Prime is targeting 40,000 m of drilling at Los Reyes, in Sinaloa, for 2024, with four rigs currently active on the site.
  • Gold Royalty Corp. filed its operating and financial results for Q1 2024. The company has a 1% NSR from the Cozamin mine production in Zacatecas. “Production from Cozamin in 2024 is anticipated by Capstone to be similar to 2023 at 22,000 to 24,000 tonnes of copper on a 100% basis. Operating costs in 2024 are forecasted by Capstone to be higher than those in 2023 driven by a higher proportion of cut-and-fill mining methods compared to longhole stoping, along with a stronger Mexican peso.
  • Golden Minerals Co. released financial results for Q1 2024. The company restarted Au-Ag production from its Velardeña properties in Durango in December 2023, but stopped mining at the end of February 2024. After the period the company has entered into negotiations for the sale of all its Mexican assets. At the end of the period the company had current assets of $5.3 M, including cash and cash equivalents of $6.5 M, and current liabilities of $6.5 M.  The sale of the Velardeña assets is expected to bring in $5.5 M, and has a $1 M receivable from VAT from the Mexican government.
  • SilverCrest Metals Inc. announced its financial results for Q1 2024. At las Chispas, in Sonora, 4.2 K of underground development were completed. 85.7 K tonnes were mined, 93.4 K tonnes milled at a rate of 1,026 tpd grading 4.97 gpt Au, 479 gpt Ag, recovering 98.6% Au, 98.0% Ag to produce 14,719 Oz Au, 1.41 M Oz Ag (0r 2.58 M Oz AgEq) at cash cost $7.09 per Oz AgEq and AISC of $12.90 per Oz AgEq. The company had revenue of US$63.6 M, and by the end of the period had US$71.1 M in cash and cash equivalents, plus US$20 M in bullion. Since mid 2023 to the end of Q1 2024, 161 holes totaling 34,384 m of infill and expansion drilling were completed.
  • Discovery Silver Corp. announced financial results and an update of operations for Q1 2024. The feasibility study for the Cordero project in Chihuahua was released in February 2024, highlighting the large scale, long life and low-cost production with attractive returns, the investment of US$1.4 billion, over 1,000 jobs during operation and industry leading environmental standards. A land access agreement was reached for the use of 600 hectares adjacent to the project. By the end of the period the company had cash and cash equivalents of US$50.7 M, liabilities for US$11.4 M and working capital of $42.9 M.
  • United States Antimony Corp. reported its first quarter 2024 financial and operational results. Revenue was $2.83 M, gross profit $428 K. “all operational activities in Mexico have ceased, and this subsidiary is now reported as a “Discontinued Operation”. Overhead was substantially reduced, and business brokers are currently being interviewed to handle future disposition of these assets and/or entities” (Juarez, Queretaro).
  • Americas Gold and Silver Corp. reported consolidated financial and operational results for the first quarter of 2024, including information from its Mexican operations. The Cosalá operations in Sinaloa produced 295 K Oz Ag, 2.8 M Lb Pb, 8.0 M Lb Zn. Revenue was $19.5 M for the period.
  • Argonaut Gold Inc. reported financial and operating results for the first quarter 2024. During the quarter Argonaut entered into a definitive agreement with Alamos Gold Inc. for the acquisition by Alamos of all the issued and outstanding shares of Argonaut. Alamos will keep the Magino mine in USA, and the rest of Argonaut’s assets in USA and Mexico will be spin out to a newly created gold company. At La Colorada, in Sonora, 3,985 Oz Au were sold at cash cost $1,851 per Oz Au and an AISC of $1,929 per Oz Au. At San Agustin in Durango, 6,007 Oz Au were sold at cash cost $1,678 and an AISC of $1,731 per Oz Au. At El Castillo in Durango, 2,130 Oz Au were sold at cash cost $1,464 per Oz Au and an AISC of $1,617 per Oz Au.

ON FINANCING

  • Impact Silver Corp. is amending and increasing its previously announced non-brokered private placement from C$6.2 M to C$8.2 M (Plomosas, Chihuahua).
  • Starcore International Mines Ltd. has arranged a non-brokered private placement for gross proceeds of up to C$500 K to conduct metallurgical testing of the carbonaceous ore at the San Martin mine, in Queretaro.
  • Mag Silver Corp. filed a preliminary short form base prospectus with the securities commission in all of the provinces and territories of Canada. A corresponding registration is pending in the United States. Accordingly, the company will be permitted to offer up to US$250 M of common shares during the 25-month period that the prospectus is effective (Juanicipio, Zacatecas, 44% Mag Silver, 56% Fresnillo).
  • Silver Spruce Resources Inc. closed the first tranche of its previously announced private placement for gross proceeds of C$299.7 K (Diamante, Sonora).
  • Vortex Metals Inc. announced a correction regarding the TSV venture Exchange bulletin from May 07,2024 regarding the previously closed private placement on April 25th 2024. The company inadvertently excluded 360 K units subscribed by an investor, as a result the total amount raised in the private placement is C$1.77 M (Riqueza Marina, Oaxaca).
  • Mag Silver Corp. announced the acceptance by the TSX of the company’s notice of intention to make a normal course issuer bid. “Under the NCIB, the Company may purchase for cancellation up to an aggregate of 8,643,374 common shares in the capital of the Company (“Common Shares”), representing approximately 10% of the public float (as defined in the rules and policies of the TSX) of the Common Shares as of May 8, 2024. The Company’s purchases in the United States will be subject to a limit of 5,148,977 Common Shares, being 5% of the public float of the Common Shares as of May 8, 2024” (Juanicipio, Zacatecas, 44% Mag Silver, 56% Fresnillo).
  • Orex Minerals Inc. closed a tranche of a non-brokered private placement financing raising gross proceeds of C$337 K (Coneto, Durango).
  • Oroco Resources Corp. entered into an agreement with Red Cloud Securities Inc. to act as lead agent and sole bookrunner on behalf of a syndicate of in connection with a best efforts, private placement for gross proceeds of C$6 M (Santo Tomás, Sinaloa).
  • Aztec Minerals Corp. will extend the expiry date of certain outstanding purchase warrants. The company issued 11.4 M share purchase warrants on June 2022, entitling the holder to purchase one common share at $0.40 per share until June 6, 2024, with none of the warrants having been exercised to date. The company is seeking the approval of the Exchange to extend the expiry date to December 6, 2025 (Cervantes, Sonora).
  • Silver Viper Minerals Corp. closed the final tranche of its non-brokered private placement financing pursuant to the Listed Issuer Financing Exemption (LIFE). The final tranche comprised 2.6 M units for aggregate gross proceeds of C$263.8 K. In total, the company raised C$2.38 M (La Virginia, Sonora).

ON RESOURCES AND DEVELOPMENT

  • No Relevant News.

ON DEALS AND CORPORATE ISSUES

  • Starcore International Mines Ltd. has joined forces with Kappes, Cassiday and Associates (KCA) to launch an environmental rehabilitation project to clean up mine tailings from the municipality of El Oro, in Estado de Mexico. “The parties have executed a Memorandum of Understanding (“MOU”) to enter into a joint venture whereby KCA would provide its expertise and services for the project aimed at rehabilitating the environment, and Starcore would act as Operator of the joint venture”. KCA will cover the engineering process and Starcore will cover the cost to construct and operate the plant. All proceedings are for Starcore until the capital cost is recovered, and 70/30 Starcore/KCA basis thereafter.
  • Xali Gold Corp. informed that Kappes, Cassiday and Associates (KCA) have teamed up with Starcore International Mines Ltd to put into production Xali’s environmental rehabilitation project to clean up mine tailings at El Oro, Estado de Mexico. “Recent test work by KCA on the El Oro Tailings Project indicates excellent potential for 72% recovery of gold and 80% recovery of silver using a process being introduced to Xali Gold by KCA…… Once production begins on the El Oro Tailings Project, KCA will pay Xali Gold a gross royalty equal to 4% of the sales income received from all gold and silver produced, less any royalties due and payable to others (the Municipality of El Oro), but in no case less than a 3% gross royalty”.

ON SOCIAL RESPONSIBILITY

  • Endeavour Silver Corp. highlighted progress on its three-year sustainability strategy in 2023 sustainability report. Endeavour’s 2022-2024 sustainability strategy is centered in three pillars: People, planet and Business.

On the image below: Deformed intrusive rock cut by a dioritic dike in HQ core (6.3 cm across) from a project in the Sonoran Desert. Picture by Jorge Cirett.

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

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By Jorge Cirett                                             

During the 19th week of the year (May 6th to May 12th,2024), companies working in Mexico posted at least 31 press releases. One company released exploration results in its property, while eleven companies released production results for Q1 2024. Two companies announced financing rounds for C$11.77 M, two more granted stock options, one is arranging a US$20 M loan, while another one obtained a US$5 M loan from another company. A company informed on the discovery of a new vein near mining workings, another one updated the mineral resource estimate at its property, two presented drilling results and one more a positive PEA on a copper play. One company issued shares whilst acquiring mining concessions, another one is assessing its ownership on its only Mexican asset, while one other is selling all its Mexican assets. One company informed on board changes. ON MEXICO ISSUES, Mexico was the venue for the meeting of mining industry unions from Argentina, Peru, Canada and Mexico. Golden Minerals announced the divestment of all its Mexican assets, to focus in Argentina. ON EXPLORATION, In Chihuahua, Kingsmen Resources released results from surface sampling at Las Cristinas. ON MINING, Gatos Silver, Aura Minerals, Fortuna Silver, First Majestic, GoGold Resources, Starcore International, Avino Silver & Gold, Pan American Silver, Torex Gold, Equinox Gold and Endeavour Silver presented financial/operational results for Q1 2024. ON FINANCING, Guanajuato Silver Company raised C$11.35 M, Tocvan Ventures raised C$420.6 K. GR Silver Mining granted shares to employees, officers, directors and consultants, and Osisko Development granted 283 K to independent directors. Heliostar Metals is arranging a US$20 M loan for test mining. Silver Storm received a US$5 M loan for advancing La Parrilla project in Zacatecas. ON RESOURCES AND DEVELOPMENT, Impact Silver discovered a new vein at its Zacualpan project. Sierra Metals updated the mineral resource and reserve estimate for Bolivar, in Chihuahua. Silver Storm released drilling results from La Parrilla, Durango. Vizsla Silver released drilling results from La Luisa vein at its Panuco project in Sinaloa. Barksdale Resources announced positive results from a PEA on the San Javier project in Sonora. ON DEALS AND CORPORATE ISSUES, Vizsla Silver issued shares on the acquisition of the San Enrique project concessions. Osisko Development is assessing its ownership on the San Antonio project in Sonora. GoGold announced board changes. Golden Minerals is selling all its assets in Mexico to focus in Argentina. ON SOCIAL RESPONSIBILITY, Torex Gold and Equinox Gold informed on ESG matters.

ON MEXICO ISSUES

  • Mining unions from Argentina, Perú, Canada and Mexico reunited on the second Encuentro del Frente Internacional Minero, under which the unions bid to design strategies to support and defend the rights of mining industry workers.
  • Golden Minerals is the company of the week announcing its departure from Mexico for greener pastures in Argentina.

ON EXPLORATION

  • Kingsmen Resources Ltd. reported surface sampling results from Las Coloradas project in Chihuahua. Twenty-eight samples were collected on the north end of the 1.7 km long Soledad structure/vein system, over a 530 m interval. Highest results comprise 0.6 m @ 0.121 gpt Au, 362 gpt Ag, >1% Pb, 0.4% Zn; 0.5 m @ 0.266 gpt Au, 449 gpt Ag, >1% Pb, 0.7% Zn; 0.8 m @ 205 gpt Ag, >1% Pb, 0.2% Zn; 0.5 m @ 106 gpt Ag, 1% Pb, 0.3% Zn; 1.1 m @ 76 gpt Ag, 2.0% Pb, 0.3% Zn, and two grab samples running 0.12 gpt Au, 81 gpt Ag, 2.6% Pb, 2.0% Zn; 432 gpt Ag, 4.7% Pb, 3.8% Zn. “The better silver grades are localized in structural intersections and flexures in all rock types. The mineralization likely continues at depth below the water table which is at a depth of approximately 125 meters. Blind extensions to all the mineralized structures, as well as new structures, are likely at depth…. The sizes of the old workings suggest the mined mineralization may have been up to several meters in width”. The mineralized structures have not been explored by drilling.

ON MINING

  • Gatos Silver Inc. announced first quarter 2024 financial and operating results. The company owns 70% of the Cerro Los Gatos project in Chihuahua, where 292.1 K tonnes were milled during the period at a 3,210 tpd rate, with ore averaging 284 gpt Ag, 3.99% Zn, 1.77% Pb, 0.28 gpt Au, to produce 2.37 M Oz Ag, 15.8 M Lb Zn, 10.1 M Lb Pb, 1,390 Oz Au, at $11.70 co-product cash cost per Oz Ag, $6.09 By-product cash cost per Oz Ag, $14.36 Co-product AISC per Oz Ag and $10.08 By product per Oz Ag. Total revenue was $72.2 M, at an EBITDA of $35.1 M and cash flow from operations of $37.3 M. At the end of the period the company had a cash balance of $70.6 M.
  • Aura Minerals Inc. filed its unaudited consolidated financial statements for Q1 2024. At Aranzazu, in Zacatecas, the company produced 25,000 Oz AuEq at cash cost $926 per Oz AuEq and an AISC of $1,263 per Oz AuEq.
  • Fortuna Silver Mines Inc. reported its financial and operating results for the first quarter of 2024. The company had consolidated international production of 89,678 Oz Au, 1.07 M Oz Ag (112,543 Oz AuEq). At San Jose, in Oaxaca, during the period 246.7 K tonnes were milled at a rate of 2,182 tpd, grading 147 gpt Ag, 0.90 gpt Au, recovering 89% Ag, 87% Au, to produce 759.1 K Oz Ag, 4,533 Oz Au, at cash cost $21.98 per Oz AgEq and an AISC of $24.24 per Oz AgEq. “The operation is experiencing further cost pressures driven by the continued appreciation of the Mexican peso. The Company conducts regular assessments and trade-offs between maintaining operations and opting for a care and maintenance option”.
  • First Majestic Silver Corp. announced “the unaudited condensed interim consolidated financial results” for the first quarter 2024. During the period, at San Dimas, in Durango, 179 K tonnes were processed to produce 1.16 M Oz Ag, 13,543 Oz Au. At Santa Elena, in Sonora, 224.4 K tonnes were processed to produce 355.2 K Oz Ag, 21,713 Oz Au. At La Encantada, in Coahuila, 588.6 K tonnes were processed to produce 456.2 K Oz Ag, 33 Oz Au. Total production in Mexico amounted to 1.97 M Oz Ag, 35,289 Oz Au. At the endo of the period the company had $102.1 M in cash and cash equivalents, and $127.2 M of restricted cash.
  • GoGold Resources Inc. announced financial results for Q1 2024. The company generated net income of US$1.3 M and revenue of US$8.9 M on the sale of 374.1 K Oz AgEq produced at its Parral tailings project in Chihuahua. GoGold had US$80.8 M in cash by the end of the period.
  • Starcore International Mines Ltd. announced production results for the fourth fiscal quarter ended April 2024. During the period its San Martin mine in Queretaro milled 55.8 K tonnes grading 1.91 gpt Au, 19.6 gpt Ag, recovering 88.6% Au, 56.9% Ag, to produce 3,242 Oz AuEq. The company informs new orebodies have been found with a new geological model, and industrial tests have shown carbonaceous ore is able to be treated to recover precious metals economically.
  • Avino Silver & Gold Mines Ltd. announced its consolidated financial results for the first quarter of 2024. At Avino, in Durango, 169.6 K tonnes were milled to produce 250.6 K Oz Ag, 1,778 Oz Au, 1.35 M Lb Cu (or 629.3 K Oz AgEq), at cash cost $14.89 per Oz AgEq and an AISC of $20.23 per Oz AgEq, at cash cost $14.89 per Oz AgEq and an AISC of $20.23 per Oz AgEq, remaining on track for the production in 2024 of 2.5 M to 2.8 M Oz AgEq. At La Preciosa, near to the Avino mine, capital costs for 2024 are expected to be between US$3.0 to US$4.0 M, to include “surface works and equipment procurement intended for the first phase of mine development for the Gloria and Abundancia Veins”. The company had revenue of $12.4 M and gross profit of $2.3 M.
  • Pan American Silver Corp. reported unaudited results for Q1 2024, including some figures from its Mexican operations. At La Colorada, in Zacatecas, 1.11 M Oz Ag, 500 Oz Au were produced at cash cost $25.01 per Oz Ag and an AISC of $25.37 during the period, while at Dolores, in Chihuahua, 430 K Oz Ag, 17,900 Oz Au were produced at cash cost $1,412 per Oz Au, an AISC of $2,367 per Oz Au. At the end of the period the company had working capital of $693.5 M, inclusive of cash and cash investments of $331.4 M, and $750 M available on its credit facility. Total debt of $806.6 M.
  • Torex Gold Resources Inc. reported financial and operational results for the first quarter of 2024. The company produced from its El Limón-Guajes deposit in Guerrero 115,494 Oz Au, or 117,306 Oz AuEq at cash cost $943 per Oz AuEq and an AISC of $1,221 per Oz AuEq. “The quarter closed with net cash1 of $69.2 million, including $113.2 million in cash and $44.0 million of lease-related obligations, no borrowings on the credit facilities of $300.0 million as at March 31, 2024 and letters of credit outstanding of $7.9 million, providing $405.3 million in available liquidity1”.
  • Equinox Gold Corp.  announced its first quarter 2024 summary financial and operating results, without providing figures per project (Los Filos, Guerrero).
  • Endeavour Silver Corp. announced its financial and operating results for Q1 2024. During the period the company processed 115 K tonnes at Guancaeví, in Durango, to produce 1.33 M Oz Ag, or 1.66 M Oz AgEq at an-in sustaining cost of $21.96 per Oz. At Bolañitos, in Guanajuato, 106.8 K tonnes were processed to produce 118.6 K Oz Ag, or 605 K Oz AgEq at an AISC of $15.59 per Oz. Total production without specifying the source was 1.46 M Oz Ag, 10,133 Oz Au. Cash position of $34.9 M at the end of the period.

ON FINANCING

  • Guanajuato Silver Company Ltd. filed an amended and restated offering document in relation to its previously announced brokered, best efforts offering, for aggregate proceeds of up to C$10.87 M (El Cubo, Guanajuto).
  • GR Silver Mining Ltd. granted stock options, deferred share units and performance share units in accordance with the omnibus long-term incentive plan approved on September’s 2023 AGM. The company granted 1.58 M incentive stock options to certain employees, executive officers, directors and consultants, and also 1.8 M incentive stock options to certain directors and executive officers. 35,294 deferred shares were granted to each non-executive directors for directors’ fees. Also 1.8 M performance share units were granted to certain executive officers of the company Plomosas, Sinaloa).
  • Heliostar Metals Ltd. entered into a non-binding letter of intent on a senior secured debt facility for US$20 M, with an expected fixed 10% rate of interest with a syndicate of lenders led by a New York based Asset Manager. “The net proceeds of the Facility will be used to advance the underground decline and complete test mining to process a bulk sample from the Ana Paula deposit in Guerrero…. Funds from the sale of gold produced from the bulk sample are anticipated to repay the principal and interest of the loan and the floor price for a portion of the test mining ounces minimizes completion risk”. The company will also issue 17.24 M warrants to the lenders at $0.40 and $0.55 per share (Ana Paula, Guerrero).
  • Sierra Madre Gold and Silver Ltd. announced that First Majestic Silver Ltd. advanced the company a US$5 M non-revolving secured loan. The loan is for a 2-year term and bears 15% interest rate, compounded monthly. The company agreed to pledge all the shares of the subsidiary that owns La Guitarra project in favour of First Majestic.
  • Guanajuato Silver Company Ltd. announced the closing of its previously announced brokered, best-efforts offering for aggregate gross proceeds of C$11.35 M, under a combined Listed Issuer Financing Exemption (LIFE) and concurrent placement to accredited investors. Certain directors, officers and other insiders and their affiliates participated in the offering and acquired $503 K in shares (El Cubo, Guanajuato).
  • Osisko Development Corp. granted 283.2 K deferred share units to its independent directors (San Antonio, Sonora).
  • Tocvan Ventures Corp. closed a final tranche of its previously announced non-brokered private placement for gross proceeds of C$420.6 K, and total combined gross proceeds of $2.52 M. Since early April 1,825 m of reverse circulation drilling have been completed in 15 holes at its Pilar project in Sonora, sample results are pending.

ON RESOURCES AND DEVELOPMENT

  • Impact Silver Corp. announced a new silver vein discovery in its currently producing Guadalupe mine in the Royal Mines of Zacualpan district in Estado de México. The Kena Vein south is within 100-200 m of active mine workings. Core length results from the first four holes comprise 1.65 m @ 378 gpt Ag, 0.40 gpt Au, 0.3% Pb, 0.4% Zn; 0.75 m @ 1,400 gpt Ag, 0.39 gpt Au, 0.9% Pb, 2.1% Zn; 17.30 m @ 214 gpt Ag, 0.02 gpt Au, 0.2% Pb, 0.3% Zn (including 3.90 m @ 358 gpt Ag, 0.03 gpt Au, 0.2% Pb, 0.4% Zn); 0.78 m @ 463 gpt Ag, 0.09 gpt Au, 0.6% Pb, 1.2% Zn; 1.20 m @ 198 gpt Ag, 1.99 gpt Au, 3.3% Pb, 5.9% Zn; 0.40 m @ 1,450 gpt Ag, 0.65 gpt Au, 2.2% Pb, 3.0% Zn; 0.70 m @ 1,615 gpt Ag, 0.58 gpt Au, 1.8% Pb, 6.0% Zn. “The Kena Vein South has now been drill tested over a length of 150 metres from mine Level 140 and is open for extension to the southeast, updip and downdip. Drilling is continuing”.
  • Sierra Metals Inc. updated the mineral resource and reserve estimates for its Bolivar mine in Chihuahua. Measured and indicated resources comprise 18.4 M tonnes @ 0.76% Cu, 15.29 gpt Ag, 0.25 gpt Au, containing 306 M Lb Cu, 9 M Oz Ag, 150,000 Oz Au, whilst inferred resources amount to 12.11 M tonnes @ 0.72% Cu, 12.21 gpt Ag, 0.19 gpt Au, containing 193 M Lb Cu, 4.75 M Oz Ag, 70,000 Oz Au. Mineral resources are inclusive of mineral reserves, which amount to 5.6 M tonnes @ 0.77% Cu, 16.83 gpt Ag, 0.28 gpt Au, containing 94.7 M Lb Cu, 3 M Oz Ag, 50,000 Oz Au
  • Silver Storm Mining Ltd. Released further drill results from its La Parrilla mine complex in Durango. Highlighted core length intervals comprise 4.13 m @ 376 gpt Ag, 0.04 gpt Au, 1.3% Pb, 1.4% Zn (including 0.60 m @ 1,270 gpt Ag, 0.14 gpt Au, 5.0% Pb, 7.4% Zn); 7.50 m @ 284 gpt Ag, 0.04 gpt Au, 0.9% Pb, 0.4% Zn (including 1.12 m @ 390 gpt Ag, 0.06 gpt Au, 2.0% Pb, 0.6% Zn and 1.38 m @ 611 gpt Ag, 0.03 gpt Au, 2.6% Pb, 0.9% Zn); 2.36 m @ 619 gpt Ag, 0.19 gpt Au, 1.3% Pb, 1.5% Zn (including 0.57 m @ 1,555 gpt Ag, 0.24 gpt Au, 1.6% Pb, 2.0% Zn); 1.21 m @ 466 gpt Ag, 0.14 gpt Au, 1.6% Pb, 0.7% Zn. These results come from the C1940, San Rafael and La Estrella zones in the Quebradillas mine, and are not included in the last resource estimate of August 2023.
  • Vizsla Silver Corp. reported results from six new holes at the La Luisa vein, at its Panuco project in Sinaloa. Highlighted true width results comprise 1.90 m @ 0.47 gpt Au, 29 gpt Ag; 1.30 m @ 2.07 gpt Au, 682 gpt Ag, 0.2% Pb, 0.2% Zn; 1.00 m @ 0.69 gpt Au, 65 gpt Ag, 0.2% Pb; 0.75 m @ 2.78 gpt Au, 827 gpt Ag, 0.6% Pb, 1.8% Zn; 2.0 m @ 2.94 gpt Au, 102 gpt Ag, 0.2% Pb, 1.1% Zn; 0.56 m @ 7.96 gpt Au, 78 gpt Ag, 0.3% Pb, 1.5% Zn; 2.90 m @ 0.71 gpt Au, 185 gpt Ag, 1.4% Pb, 0.7% Zn; 1.22 m @ 0.71 gpt Au, 255 gpt Ag, 2.3% Pb, 1.2% Zn; 0.56 m @ 0.53 gpt Au, 234 gpt Ag, 0.7% Pb, 0.2% Zn; 2.11 m @ 0.93 gpt Au, 33 gpt Ag, 0.2% Pb, 1.8% Zn; 0.80 m @ 1.05 gpt Au, 77 gpt Ag, 0.1% Pb, 0.2% Zn; 2.70 m @ 0.42 gpt Au, 52 gpt Ag, 0.2% Pb, 0.6% Zn; 0.48 m @ 61.60 gpt Au, 3,310 gpt Ag, 0.8% Pb, 1.3% Zn; 1.10 m @ 7.79 gpt Au, 103 gpt Ag, 0.2% Pb, 0.8% Zn; 0.73 m @ 9.73 gpt Au, 115 gpt Ag, 0.2% Pb, 1.0% Zn. La Luisa vein has been mapped for 1,500 m on the surface, and defined by 57 holes for 1,670 m and 450 m downdip, averaging 2.56 m @ 3.09 gpt Au, 150 gpt Ag, 0.36% Pb, 1.35% Zn.
  • Barksdale Resources Corp. announced positive results of a preliminary economic assessment (PEA) completed on the San Javier oxide copper-gold project in Sonora. “The PEA envisions a modest capital cost project utilizing conventional openpit mining with a solvent-extraction and electrowinning (“SXEW”) plant to produce LME-grade copper cathodes on-site”. Highlights include a 13-year mine life producing 209 M Lb of cathode Cu with an on-site SXEW, open pit mining with a waste to ore ratio of 0.66 to 1, average LOM cash costs of $2.16 per Lb Cu, low initial cost of US$116.8 M an upside expansion on the Mesa Grande and Trinidad areas and the assessment of potential gold recovery and run of mine processing. Metallurgical testwork returned 85% recovery of soluble copper in the leach cap and oxide zones, 75% in the mixed oxide/sulfide and 60% recovery in the sulfide zone. The mineral resource estimate stands at 70.1 M tonnes @ 0.271% Cu containing 289.4 M Lb soluble Cu in the measured and indicated category, and 6 M tonnes @ 0.240% Cu, containing 19.9 M Lb of soluble Cu.

ON DEALS AND CORPORATE ISSUES

  • Vizsla Silver Corp. has now issued 448.1 K shares in relation to the acquisition of the 10,667 Ha San Enrique project claims in Sinaloa from Inca Azteca Gold S.A.P.I. de C.V. Minera Canam, S.A. de C.V. The claims are south and partially adjacent to Vizsla’s Panuco project, and covered 100% with LiDAR and partially covered with high-resolution aero-magnetic and radiometric surveys.
  • Osisko Development Corp. informed the San Antonio project in Sonora was placed in care and maintenance after completion of processing of the remaining stockpile inventory from the heap leach pad in Q3 2023. The company waits for the next steps the government takes after the June 2024 presidential elections with respect to the permitting process and the status of open pit mining in the country. Osisko is “exploring the potential for a financial or strategic partner in the asset or for a full or partial sale of the asset”.
  • GoGold Resources Inc. announced the retirement of George Wayne, FCPA, FCA from its board. The company has appointed Douglas Reid to its board (Parral Tailings, Chihuahua).
  • Golden Minerals Co. entered into a definitive agreement to sell the primary assets comprising its Velardeña properties in Durango. “The assets being sold include the Velardeña and Chicago mines, both of the Company’s oxide and sulfide processing plants and related equipment”. On April 29, 2024, the buyer paid a non-refundable $1 M in cash. On May 20, 2024, the buyer shall pay $2.0 M in cash and on July 1, 2024, the buyer shall pay $2.5 M in cash. In other matters, the company agreed to pay $250 K to Unifin Financiera S.A.B. de C.V. in exchange for UNIFIN’s withdrawal of an ongoing lawsuit. “The sale will enable us to divest of our production assets and related liabilities in Mexico and allow us to focus on exploration and development, principally of our Argentina assets. We also anticipate future net proceeds from the sale of tax credits related to the holding companies of the production assets.”

ON SOCIAL RESPONSIBILITY

  • Torex Gold Resources Inc. “exited the quarter with one lost-time ankle injury at the Media Luna Project and reached 14 million hours lost-time injury free at the El Limón-Guajes (“ELG”) Mine Complex”. The lost-time injury frequency for the Morelos Complex in Guerrero was 0.15 per million hours worked for employees and contractors on a rolling 12-month basis.
  • Equinox Gold Corp. published its 2023 Environmental Social and Governance (ESG) report.

On the image below: Long shadows on vein ridges on a project in the Sonoran Desert. Picture by Jorge Cirett.

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

/ Gambusino Prospector / Leave a comment

By Jorge Cirett                                             

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

ON MEXICO ISSUES

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

ON EXPLORATION

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

ON MINING

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

ON FINANCING

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

ON RESOURCES AND DEVELOPMENT

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

ON DEALS AND CORPORATE ISSUES

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

ON SOCIAL RESPONSIBILITY

  • No Relevant News.

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

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

/ Gambusino Prospector / Leave a comment

By Jorge Cirett                                             

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

ON MEXICO ISSUES

  • No Relevant News.

ON EXPLORATION

  • No Relevant News.

ON MINING

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

ON FINANCING

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

ON RESOURCES AND DEVELOPMENT

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

ON DEALS AND CORPORATE ISSUES

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

ON SOCIAL RESPONSIBILITY

  • No Relevant News.

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

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

/ Gambusino Prospector / Leave a comment

By Jorge Cirett                                             

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

ON MEXICO ISSUES

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

ON EXPLORATION

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

ON MINING

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

ON FINANCING

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

ON RESOURCES AND DEVELOPMENT

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

ON DEALS AND CORPORATE ISSUES

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

ON SOCIAL RESPONSIBILITY

  • No Relevant News.

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

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

/ Gambusino Prospector / Leave a comment

By Jorge Cirett                                             

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

ON MEXICO ISSUES

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

ON EXPLORATION

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

ON MINING

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

ON FINANCING

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

ON RESOURCES AND DEVELOPMENT

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

ON DEALS AND CORPORATE ISSUES

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

ON SOCIAL RESPONSIBILITY

  • No Relevant News.

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

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

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By Jorge Cirett                                             

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

ON MEXICO ISSUES

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

ON EXPLORATION

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

ON MINING

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

ON FINANCING

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

ON RESOURCES AND DEVELOPMENT

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

ON DEALS AND CORPORATE ISSUES

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

ON SOCIAL RESPONSIBILITY

  • No Relevant News.

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

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

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By Jorge Cirett                                             

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

ON MEXICO ISSUES

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

ON EXPLORATION

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

ON MINING

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

ON FINANCING

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

ON RESOURCES AND DEVELOPMENT

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

ON DEALS AND CORPORATE ISSUES

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

ON SOCIAL RESPONSIBILITY

  • No Relevant News.

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

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

/ Gambusino Prospector / Leave a comment

By Jorge Cirett                                             

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

ON MEXICO ISSUES

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

ON EXPLORATION

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

ON MINING

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

ON FINANCING

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

ON RESOURCES AND DEVELOPMENT

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

ON DEALS AND CORPORATE ISSUES

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

ON SOCIAL RESPONSIBILITY

  • No Relevant News.

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