During the 1st week of the year (January 1st to January 7th, 2024), companies working in Mexico posted 10 news releases. Two companies reported exploration advances on their properties, one announced a financing round, other extended warrants and one more granted stock options. One company released drilling results from its advanced property, one other the amalgamation with a subsidiary and one more the agreement to acquire mining concessions. Two companies announced appointments to their boards. ON MEXICO ISSUES, no relevant news. ON EXPLORATION, in Sonora, Canuc Resources commenced exploration at its San Javier project; Aztec Minerals provided a review and plans on its Cervantes property. ON MINING, no relevant news. ON FINANCING, Silver Wolf is extending warrants, and settled debt with shares. Oroco Resource announced a $1 M non-brokered financing. Bear Creek Mining is granting options to an officer. ON RESOURCES AND DEVELOPMENT, Silver Storm Mining released drill results from La Parrilla, in Durango. ON DEALS AND CORPORATE ISSUES, Chesapeake Gold completed the amalgamation with one of its subsidiaries. Regency Silver entered in an agreement to acquire two claim groups near the San Dimas mine in Durango. Guanajuato Silver announced the appointment of its chief financial officer, and Luca Mining announced the appointment of its chief financial officer and the resignation of Ralph Shearing, founder. ON SOCIAL RESPONSIBILITY, no relevant news.
ON MEXICO ISSUES
No Relevant News.
ON EXPLORATION
Canuc Resources Corp. commenced geological mapping and sampling at its San Javier Au-Ag project in Sonora. The exploration program is to center on the largest magnetic-high anomaly, measuring 800 by 400 m, and on a donut shaped anomaly 800 m in diameter south-east of the magnetic high. The magnetic high itself is 300 m west of “where magnetite silver veining comes to surface and where old artisanal mine workings were tunneled on magnetite veins which sampled high to bonanza grades of silver”.
Aztec Minerals Corp. provided a review of 2023 and its outlook for 2024. On the Cervantes project in Sonora, road cut sampling, Terraspec SWIR data and detailed geological mapping was completed, along with the drilling of 13 RC holes which expanded the California zone gold target to 1 km by 250 m in size. Assay results for the holes is pending, and exploration work continues in preparation to follow up drilling.
ON MINING
No Relevant News.
ON FINANCING
Silver Wolf Exploration Ltd. received approval from the TSX for the extension of warrants from December 2023 to December 2024. The company also settled an aggregate debt of $30 K by issuing shares. (Ana Maria, Durango).
Oroco Resource Corp. announced a non-brokered private placement to raise gross proceeds of up to $1 M (Santo Tomás, Sinaloa).
Bear Creek Mining Corp. approved the granting of 500 K stock options to its recently appointed chief financial officer (Mercedes, Sonora).
ON RESOURCES AND DEVELOPMENT
Silver Storm Mining Ltd. announced further drill results from its La Parrilla mine complex in Durango. Highlighted core length intercepts comprise 6.03 m @ 0.17 gpt Au, 166 gpt Ag, 1.1% Pb, 2.1% Zn (including 1.67 m @ 0.07 gpt Au, 334 gpt Ag, 1.7% Pb, 4.0% Zn); 1.22 m @ 0.79 gpt Au, 171 gpt Ag, 2.8% Pb, 7.9% Zn; 14.62 m @ 0.13 gpt Au, 1,151 gpt Ag, 13.8% Pb, 10.2% Zn (including 9.57 m @ 0.11 gpt Au, 1,35 gpt Ag, 18.4% Pb, 12.0% Zn). The results are from the C460 zone on the Quebradillas mine, “The replacement vein is concordant to bedding in the sediments and mineralization is comprised of pyrite, pyrrhotite, galena, sphalerite, arsenopyrite, acanthite, and freibergite”.
ON DEALS AND CORPORATE ISSUES
Chesapeake Gold Corp. has completed a vertical short-form amalgamation with the Company’s wholly-owned subsidiary, American Gold Capital Corp., with the amalgamated company adopting the name of Chesapeake Gold Corp., issuing no securities and the same ticker symbol on the OTCQX. “Following completion of the Amalgamation, the Company now holds Metates Resources directly, which in turn holds the shares of the Company’s Mexican subsidiaries without an intervening US subsidiary.” (Metates, Durango).
Regency Silver Corp. entered into an option agreement to acquire two contiguous claim groups near the San Dimas mine in Durango. The claims are located 13 km to the West of the San Dimas mine, covering 3,498 hectares that contain numerous artisanal workings and tunnels. Historical sampling has returned values as high as 17 gpt Au, 7,753 gpt Ag; 37 gpt Au, 2,325 gpt Ag, and grab samples by Regency Silver returned 8.95 gpt Au, 304 gpt Ag; 0.49 gpt Au, 1,084 gpt Ag. Regency has to pay US$50 K on Exchange acceptance, US$50 K in 6 months, issue 1 M common shares and pay back taxes and mining filings before March 25, 2025. “In lieu of a royalty, Regency Silver must also pay a US$1M bonus upon a NI 43-101 resource being published, which estimates the San Dimas Claims contain a minimum of 70 million silver equivalent ounces or 1 million gold ounces in the measured or indicated categories”.
Guanajuato Silver Company Ltd. announced the appointment of Danny Lee as chief financial officer (El Cubo, Guanajuato).
Luca Mining Corp. appointed Lisa Dea as chief financial officer. Ralph Shearing, the founder of the company, resigned from the Board of Directors (Campo Morado, Guerrero).
ON SOCIAL RESPONSIBILITY
No Relevant News.
On the image below: Silicified ridges on a project of the Sonoran Desert. Picture by Jorge Cirett.
During the 51st week of the year (December 18th to December 24th, 2023), companies working in Mexico posted 28 news releases. Three companies reported exploration advances on their properties, two companies released quarterly reports and one other the successful breakthrough of a major tunnel. In a busy week for financing matters, six companies entered, closed, increased or amended their private placements, one company updated the disclosure on its incentive warrant program, another announced its intention to repurchase up to 10% of its outstanding shares and another one settled a debt with shares. Two companies released drilling results from their advanced properties and one more the completion of a drilling campaign. Two companies announced a merger, one company announced the rent to purchase agreement on a processing plant, one other provided a summary of yearly activities and plans for 2024. A company sold a subsidiary to a local enterprise while other sold a subsidiary to a foreign one. One company announced a board appointment and one more the results of its AGM. ON MEXICO ISSUES, fossil fuels produce 62% of the energy used by the mining industry in Mexico, and 21% of the water is from underground sources. ON EXPLORATION, in Sonora, Colibri Resource released drilling results from Evelyn; Tocvan Ventures plans a 10,000 m drilling program at Pilar; Riverside Resources reported on field work and rock sampling at Cecilia. ON MINING, Starcore International filed its second quarter 2023 report, GoGold Resources released quarterly-yearly report. Torex Gold completed the tunnel connecting the Limon-Guajes operations with the Media Luna project under the Balsas River. ON FINANCING, Endeavour Silver entered into an agreement to sell up US$60 M in shares in a 25-month period. Heliostar Metals updated the disclosure on the closing of its warrant exercise incentive program. Regency Silver announced a non-brokered private placement (CAD$800 K). Silver Viper is to amend its non-brokered private placement. Alamos Gold is to repurchase up to 10% of its stock. Luca Mining closed a CAD$2 M non-brokered private placement. GR Silver Mining settled a $100 K debt with shares. Canuc Resources closed a CAD$2 M non-brokered private placement. Atacama Copper is to increase its non brokered private placement to $12 M. ON RESOURCES AND DEVELOPMENT, Sierra Madre Gold and Silver filed a technical report on La Guitarra project, in Estado de Mexico. Pan American Silver presented the results of the PEA on La Colorada Skarn project, in Zacatecas. Aztec Minerals completed an RC drilling program at Cervantes, in Sonora. ON DEALS AND CORPORATE ISSUES, Atacama Copper entered into a business combination agreement with TCP1. Santacruz Silver Mining sold a subsidiary to a Mexican enterprise. Xali Gold Corp. entered into a rent to purchase agreement to sell the San Dieguito de Arriba mill in Nayarit to a Mexican company. Bear Creek Mining and Mag Silver appointed officers. Vizsla Silver provided a summary of its 2023 activities and 2024 plans. Sailfish Royalty entered into a share purchase agreement with CMC Metals for the sale of Sailfish’s Mexican subsidiary controlling the Gavilanes project in Durango. Santacruz Silver Mining held its AGM. ON SOCIAL RESPONSIBILITY, Capstone Copper published its 2022 sustainability report.
ON MEXICO ISSUES
Camimex (Cámara Minera de México) informed that 62% of the energy used by the mining industry in Mexico is produced by fossil fuels, and 21% of the water is from underground sources.
ON EXPLORATION
Colibri Resource Corp. announced that the recently completed seventeen-hole 2,200 m reverse circulation drilling program at the Evelyn property in the EP project in Sonora has discovered a new zone of mineralization. The six holes on the new West Sahuaro zone intercepted mineralization, with hole length intercepts of 23 m @ 0.35 gpt Au; 66 m @ 0.273 gpt Au; 6 m @ 0.753 gpt Au; 24m @ 0.148 gpt Au; 26 m @ 0.323 gpt Au (including 5 m @ 0.779 gpt Au); 27 m @ 0.252 gpt Au; 37 m @ 0.195 gpt Au; 4 m @ 1.175 gpt Au; 50 m @ 0.180 gpt Au. West Sahuaro was prioritized based on a gold soil anomaly 500 m in length, a coincident mapped structure and IP geophysical interpretation. Relevant intervals from drilling on the Main Zone comprise 10 m @ 0.242 gpt Au; 21 m @ 0.152 gpt Au; 1 m @ 0.351 gpt Au; 1 m @ 0.967 gpt Au.
Tocvan Ventures Corp. informed of plans for a 10,000 m drilling program at its Pilar project in Sonora. The program is focused in resource definition, targeting a maiden mineral resource estimate for late 2024. Depending on market conditions, the program could be extended to 20,000 m to include evaluation of targets areas across Pilar and the earlier stage Picacho project, also in Sonora.
Riverside Resources Inc. reported field work and rock sampling from the Cecilia project in Sonora, constructing a model of a composite dome system with superimposed veins. Results from 34 rock samples returned up to 7.3 gpt Au, 144 gpt Ag in the Magallanes target area. Agua Prieta, San Jose, North Breccia, Central and East trends are the main structural corridors, interpreted as the surface expression of a rooted rhyolite dome system, with higher grades at the base. All the information gathered is to be used in target delineation for the planned 2024 drill program.
ON MINING
Starcore International Mines Ltd. filed the results for the second quarter ended October 31, 2023. During the period, the San Martin mine in Queretaro milled 58 K tonnes averaging 1.42 gpt Au, 14.8 gpt Ag, recovering 85.2% Au, 48.8% Ag, to produce 2.3 K Oz Au, 13.5 K Oz Ag (2.4 K Oz AuEq), with a mine operating cash cost of $1,690 per Oz AuEq. The operating loss in the quarter was $1.03 M whilst cash and short-term investments were $4.7 M at October 31, 2023.
GoGold Resources Inc. announced financial results for the year ending September 30, 2023, with the Parral operations in Chihuahua generating $30 M from the sale of $1.4 M Oz AgEq. During the period 706.9 K Oz Ag, 7,032 Oz Au, 615 tonnes Cu (1.52 M Oz AgEq) were produced. Cash at the end of the period of US$95.3 M.
Torex Gold Resources Inc. announced the successful breakthrough of the Guajes tunnel which connects the existing operations on the north side of the Balsas River with the resource base of the Media Luna Cluster on the south side, at its Morelos Complex in Guerrero. Advance rates averaged 7.1 m per day since the start of 2023, and 8 m per day last November, which is impressive, given the 6.5 m high by 6.0 m wide dimensions of the tunnel.
ON FINANCING
Endeavour Silver Corp. entered into a sales agreement with a syndicate of agents lead by BMO Capital Markets Corp. pursuant to which the company may, at its discretion and from time to time during the 25-month term of the agreement, sell common shares of the company that add up to US$60 M in aggregate gross proceeds (Terronera, Jalisco).
Heliostar Metals Ltd. updated its disclosure regarding the closing of its warrant exercise incentive program. “Capitalized terms used but not defined in this news release have the meanings given to them in the Company’s news release dated December 11, 2023”. An additional 18,000 outstanding warrant were exercised pursuant to the incentive program. A total of 17.6 M common shares were issued upon the exercise of 17.6 M outstanding warrants, providing aggregate gross proceeds of $5.3 M. A total of 5.87 M incentive warrants were issued, and 28.76 M outstanding warrants remain (Ana Paula, Guerrero).
Regency Silver Corp. announced a non-brokered private placement to raise up to CAD$800 K (Dios Padre, Sonora).
Silver Viper Minerals Corp. intends to amend its non-brokered private placement financing to raise up to $2 M in gross proceeds. “Concurrently with the announcement of the Amended Offering, the Company is terminating its previously announced non-brokered private placement pursuant to the Listed Issuer Financing Exemption (the “LIFE”) of National Instrument 45-106 – Prospectus Exemptions (the “LIFE Offering”). In connection with the termination of the LIFE Offering, the Company is withdrawing the offering document that it filed on December 8, 2023, with respect to the LIFE Offering. Purchasers under the Amended Offering should not rely on such offering document.” (La Virginia, Sonora).
Alamos Gold Inc. filed and and received acceptance from the Toronto Stock Exchange on a notice of intention to repurchase for cancellation up to 34.58 M class A common shares (10% of the public float) thorough a Normal Course Issuer Bid from December 24, 2023 to December 23, 2024 (Mulatos, Sonora).
Luca Mining Corp. closed the CAD$2 M non-brokered private placement previously announced, raising CAD$2 M in gross proceeds, and reserving a 25% over subscription option on the private placement (Campo Morado, Guerrero).
GR Silver Mining Ltd. issued 1.34 M shares to settle and aggregate debt of $100.8 K outstanding as October 31, 2023. Directors and officers of the company participated in the debt settlement transactions, receiving an aggregate of 788.9 K shares to settle a $59.2 K debt (Plomosas, Sinaloa).
Canuc Resources Corp. closed a non-brokered private placement financing, raising gross proceeds of CAD$2 M (San Javier, Sonora).
Atacama Copper Corp. announced the intention to increase the size of its previously announced brokered private placement for aggregate gross proceeds of up to $12 M. The first tranche has been closed with aggregate gross proceeds of $7 M (Yecora, Sonora).
ON RESOURCES AND DEVELOPMENT
Sierra Madre Gold and Silver Ltd. filed a technical report with the previously disclosed mineral resource estimate for the La Guitarra project in Estado de Mexico. The estimate includes 3.84 M tonnes @ 146 gpt Ag, 0.96 gpt Au (220 AgEq) in indicated resources containing 18 M Oz Ag, 118 K Oz Au, and 4.1 M tonnes @ 113 gpt Ag, 0.52 gpt Au (153 gpt AgEq) in inferred resources, containing 20.1 M Oz Ag, 68 K Oz Au.
Pan American Silver Corp. released the results of a preliminary economic assessment (PEA) on its La Colorada Skarn project in Zacatecas. The PEA envisions a 50 K tonnes per day (tpd) sub-level cave mining method, accessed by decline ramps and two ventilation shafts. Estimated production for the first ten years is 17.2 M Oz Ag, 427 K tonnes Zn, 218 K tonnes Pb, on recovery rates of 84.8% Ag, 93.7% Zn, 84.3% Pb. The estimated initial capital cost is $2,829 M over a six-year construction period, a payback period of 4.3 years, total life of mine (LOM) of $951 M and a cumulative after-tax cash flow of $5,689 M. The estimated mineral resource is 173.6 M tonnes @ 2.79% Zn, 1.32% Pb, 33 gpt Ag in the indicated category and 103.6 M tonnes @ 2.47% Zn, 1.03% Pb, 33 gpt Ag in the inferred category.
Aztec Minerals Corp. completed 13 reverse circulation holes for a total of 1,646 m at its Cervantes project in Sonora. The holes were drilled on the California gold zone target, with step out drilling to expand the zone to the north, west, east and south, where previous drilling has intercepted extensive shallow, wide oxide mineralization. “The gold mineralization at Cervantes is characterized by oxidized and unoxidized stockwork veinlets of A, B, and C types and disseminated sulfide sites, with silicification and phyllic alterations, typical of large porphyry Au hosted deposits in similar geological settings. Potassic alteration is present in places and is associated with sulphide mineralization as well.” Geological logging of the RC chips showed evidence of wide zones of oxidized, strongly altered rocks with multiple veinlets. Results are pending.
ON DEALS AND CORPORATE ISSUES
Atacama Copper Corp. has entered into a business combination agreement on December 15, 2023 with TCP1 Corp. and 1000723052 Ontario Corp. “a wholly-owned subsidiary of the Company, pursuant to which the Company will acquire all of the issued and outstanding shares of TCP1 in exchange for common shares of the Company which will result in the reverse takeover of the Company by TCP1.” After the business combination the company will consolidate its share capital on 6 to 1 basis. Prior to the closing of the proposed transaction Atacama Copper shall complete the private placement for gross proceeds of CAD$10 M. The net proceeds are to be used to advance exploration programs with focus on Cristina (Chihuahua) and Yecora (Sonora).
Santacruz Silver Mining Ltd. announced the sale of its shares in Santacruz Holdings Ltd., “which has 100% ownership in Impulsora Minera Santacruz, S.A. de C.V., a non-core Mexican subsidiary of the Company, to a private Mexican group” (Zimapan, Hidalgo).
Xali Gold Corp. entered into a rent to purchase agreement with Grupo Minero WIYA (A Mexican company) to operate the San Dieguito de Arriba (SDA) plant in Nayarit. WIYA agreed to pay Xali US$150 K per month (of which the first US$150 K were paid in early December 2023) for ten months. Upon completion of paying a total of US$1.5 M within 12 months, WIYA will have the right to own the SDA plant, and the obligation to complete all repairs and permitting to get the SDA plant into operation. The company will share the profits from the transaction with Magellan Acquisition Corp., as each own 50% of the SDA plant (El Oro, Estado de Mexico).
Bear Creek Mining Corp. announced the appointment of Mr. Fernando Ragone as chief financial officer (CFO).
Vizsla Silver Corp. provided a summary of its 2023 activities and key objectives for 2024. The company completed over 98,000 m of drilling at Panuco, in Sinaloa, expanding and upgrading mineralization at the Copala and Napoleon areas. “Mineralization at Copala has now been traced over 1,770 metres along strike, ~450 metres down dip, and remains open to the north and southeast”. Notable discoveries include the La Luisa and Molino veins, with La Luisa having been traced for 1,670 m along strike and to 450 m of depth, with an average width of 3.21 m. Key objectives for 2024 include an updated mineral resource estimate in January 2024, a potential royalty spinout, the delivery of a maiden PEA in H1 2024, complete an updated metallurgical testing, complete +65,000 m of resource/discovery drilling and completing a 1,100 line Km EM survey and acquire high-resolution multispectral satellite imagery for the district.
Sailfish Royalty Corp. entered into a share purchase option agreement with CMC Metals Ltd. granting CMC the option to acquire 100% of the shares of Swordfish Silver Corp. “Swordfish, through Sailfish de Mexico S.A. de C.V., holds the mineral rights in and to the silver exploration project located in the Municipality of San Dimas, State of Durango, Mexico, known as the Gavilanes property”. CMC reimbursed US$27.4 K to Sailfish for project expenses in 2023. In order to exercise the option, CMC has to pay Sailfish US$500 K before the end of March 2024, US$500 K before the end of March 2025, US$500 K before the end of March 2026 and US$2 M before the end of March 2027; issuing 1 M CMC shares upon acceptance by the TSX of the agreement, $700 K in CMC shares on or before the end of March 2024 and $500 K in shares on or before the end of March 2025; also CMC must incur exploration expenses of C$1 M before the end of March 2025, C$1.5 M before the end of March 2026 and C$2.5 M on or before the end of March 2027.
Santacruz Silver Mining Ltd. held its annual general meeting on December 20, 2023 (Zimapan, Hidalgo).
Mag Silver Corp. appointed Tom Peregoodoff to the board of directors effective January 1, 2024 (Juanicipio, Zacatecas).
ON SOCIAL RESPONSIBILITY
Vizsla Silver Corp. published its inaugural sustainability report. Key performance highlights include: The commissioning of a green house inventory and exploration of options to incorporate on-site renewable energy. Bi-annual health fairs and community health campaigns and achieving one million hours of consecutive work hours without a lost time incident. Preparation of the inaugural sustainability report and the use of a new software platform to track and enhance ESG performance (Panuco, Sinaloa).
On the image below: Silicified ridges on a project of the Sonoran Desert. Picture by Jorge Cirett.
During the 50th week of the year (December 11th to December 17th, 2023), at least 20 press releases were announced by companies working in Mexico, and 1 news published by the media, with seven reporting resources and developments, six disclosing deals and corporate issues, three announcing financing issues, three commenting on Mexican issues, one communicating production results, and one informing on exploration results. ON MEXICO ISSUES, Personnel from the Attorney General’s Office of the State of Coahuila announced that they will begin the search and recovery process for the bodies of the 10 miners who were trapped in the El Pinabete coal mine on August 3, 2022, located in Sabinas, Coahuila. Almaden announced that it delivered to the Mexican government a request for consultations in accordance with the comprehensive and progressive agreement for Trans-Pacific Partnership relating to an investment dispute with Mexico. Gold Resource, Vizsla Silver, Prime Mining, and Kootenay Silver reported the best drilling intercepts in Mexico on the second week of December, 2023. ON EXPLORATION, In Baja California Sur, King announced that the letter of intent (Oct 18, 2023) to acquire 50% of the Las Misiones project in Baja California Sur has lapsed and the Company will not be pursuing the project at this time. ON MINING, Guanajuato Silver reported Mid-Q4, 2023 production results from their Mexican operations. ON FINANCING Argonaut closed its previously announced CAD $85M bought deal public offering (El Castillo mine, Durango). Heliostar completed its previously announced warrant exercise incentive program for gross proceeds of $5,274,463.20 (Ana Paula property, Guerrero). Tocvan closed the second tranche of its previously announced non-brokered private placement for gross proceeds of $306,150 (Pilar project, Sonora). ON RESOURCES AND DEVELOPMENT, Fortuna Silver provided an exploration update on its San Jose mine, Oaxaca. Gold Resource reported the results of one of its recent step-out drill holes at Don David mine, Oaxaca. Tocvan released trench channel sample results from its Pilar project, Sonora. Prime reported expansion drill results from its ongoing 60,000m 2023 drilling program at its Los Reyes project, Sinaloa. Vizsla released results from 15 holes from its flagship Panuco project, Sinaloa. Kootenay announced results from the last two holes of the 2023 drill program at its Columba project, Chihuahua. Minera Alamos announced that it filed on SEDAR an independent Technical Report and estimate of the Mineral Resource for its Santana mine in Sonora. ON DEALS AND CORPORATE ISSUES, Coeur appointed a new member to its Board of Directors (Palmarejo mine, Chihuahua). Defiance reported results of its annual general meeting of shareholders (San Acacio project, Zacatecas). Heliostar announced management changes and additions to its Board (Ana Paula project, Guerrero). Monumental appointed a new member to its Board of Directors (Jemi HREE project, Coahuila). Minera Alamos reported results from its annual general meeting of shareholders (Santana mine, Sonora). Almaden granted stock options to Directors, officers, and Employees of the company (San Pedro project, Jalisco). ON SOCIAL RESPONSIBILITY, No relevant news.
ON MEXICO ISSUE
Personnel from the Attorney General’s Office of the State of Coahuila announced that they will begin the search and recovery process for the bodies of the 10 miners who were trapped in the El Pinabete coal mine on August 3, 2022, located in Sabinas, Coahuila. Almost 500 days after the tragedy that cost the lives of 10 miners, the personnel responsible for the search and recovery tasks safely reached the galleries of the El Pinabete mine.
Almaden Minerals Ltd., announced that it delivered to the Mexican government a request for consultations in accordance with the comprehensive and progressive agreement for Trans-Pacific Partnership (CPTTP) relating to an investment dispute with Mexico. “The investment dispute arises out of certain acts and omissions of Mexico in breach of the CPTPP relating to the Company’s investment in the Ixtaca Gold-Silver Project. The Company has suffered substantial harm arising out of Mexico’s conduct in breach of its investment protection obligations under the CPTPP, including (without limitation): the Mexican Ministry of Economy’s (Economia) declaration that the Project’s mineral titles were void; Economia’s reassessment of the original applications for the mineral titles holding them to be deficient and unfeasible, contradicting the position previously adopted by it, and violating the Company and its subsidiary’s right to amend or supplement the mineral title applications; and the Mexican Secretariat of Environment and Natural Resources’ (Secretaría del Medio Ambiente y Recursos Naturales, SEMARNAT) delay in issuance and ultimate refusal to issue the Project’s environmental permit (Manifiesto de Impacto Ambiental)”. The Company confirms that it is taking all necessary actions to preserve its rights and protect its investments in Mexico.
Gold Resource Corporation, Vizsla Silver Corp., Prime Mining Corp., and Kootenay Silver Inc., reported their best drilling intercepts in Mexico on the third week of November, 2023. Details are shown in the table below:
ON EXPLORATION
King Global Ventures Inc., announced that the letter of intent (Oct 18, 2023) to acquire 50% of the Las Misiones project in Baja California Sur has lapsed and the Company will not be pursuing the project at this time.
ON MINING
Guanajuato Silver Company Ltd., reported Mid-Q4, 2023 production results from their Mexican operations. Results from October to the end of November are shown by mine in the table below:
ON FINANCING
Argonaut Gold Inc., closed its previously announced bought deal public offering of 223,685,000 common shares of the company at a price of CAD $0.38 for gross proceeds of CAD $85M. Part of the gross proceeds will be used for working capital purposes (El Castillo mine, Durango).
Heliostar Metals Ltd., completed its previously announced warrant exercise incentive program. A total of 17,581,544 common shares in the capital of the company were issued upon the exercise of 17,581,544 previously outstanding share purchase warrants, providing aggregate gross proceeds of $5,274,463.20 to the company. The proceeds of the incentive program will be used for exploration and development of the Ana Paula Project and for working capital purposes.
Tocvan Ventures Corp., closed the second tranche of its previously announced non-brokered private placement. It consisted of the issuance of an aggregate of 680,333 units at a price of $0.45 per unit, for gross proceeds of $306,150. The proceeds of the raise will go towards the advancement of the Pilar Au-Ag project in Sonora.
ON RESOURCES AND DEVELOPMENT
Fortuna Silver Mines Inc., provided an exploration update on its San Jose mine, Oaxaca. It reported results from the drilling program at Jessi Vein. Drilling highlights (true widths reported) include holes SJOM-1357 with 1.8 g/t Au and 60 g/t Ag (204 g/t AgEq) over 7.1m; hole SJOM-1366A with 1.58 g/t Au and 195 g/t Ag (321 g/t AgEq) over 0.2m, plus 0.78 g/t Au and 91 g/t Ag (153 g/t AgEq) over 1.5m, plus 0.75 g/t Au and 102 g/t Ag (162 g/t AgEq) over 0.4m, plus 0.70 g/t Au and 96 g/t Ag (152 g/t AgEq) over 0.4m, plus 1.22 g/t Au and 161 g/t Ag (258 g/t AgEq) over 1m; hole SJO-1417 with 4.61 g/t Au and 489 g/t Ag (858 g/t AgEq) over 0.5m, plus 1.40 g/t Au and 140 g/t Ag (252 g/t AgEq) over 0.6m; hole SJOM-1418 with 1.13 g/t Au and 95 g/t Ag (185 g/t AgEq) over 0.8m; hole SJOM-1428 with 2.48 g/t Au and 347 g/t Ag (545 g/t AgEq) over 17m, including 6.26 g/t Au and 620 g/t Ag (1,121 g/t AgEq) over 0.4m, plus 1.98 g/t Au and 307 g/t Ag (465 g/t AgEq) over 0.3m, plus 11.27 g/t Au and 1,344 g/t Ag (2,246 g/t AgEq) over 0.5m, plus 11.07 g/t Au and 1,137 g/t Ag (2,023 g/t AgEq) over 0.5m, plus 2.5 g/t Au and 314 g/t Ag (514 g/t AgEq) over 0.3m, plus 9.42 g/t Au and 774 g/t Ag (1,528 g/t AgEq) over 0.2m, plus 32 g/t Au and 5,905 g/t Ag (8,465 g/t AgEq) over 0.5m; hole SJO-1430 with 0.61 g/t Au and 84 g/t Ag (133 g/t AgEq) over 0.9m, plus 8.26 g/t Au and 770 g/t Ag (1,431 g/t AgEq) over 1.1m, plus 0.7 g/t Au and 90 g/t Ag (146 g/t AgEq) over 1.7m, plus 1.25 g/t Au and 150 g/t Ag (250 g/t AgEq) over 4m, plus 2.11 g/t Au and 170 g/t Ag (339 g/t AgEq) over 0.3m; and hole SJO-1431 with 5.38 g/t Au and 576 g/t Ag (1,006 g/t AgEq) over 0.3m, plus 1.02 g/t Au and 114 g/t Ag (195 g/t AgEq) over 5.2m, including 7.16 g/t Au and 838 g/t Ag (1,411 g/t AgEq) over 0.2m, plus 1.18 g/t Au and 146 g/t Ag (240 g/t AgEq) over 0.2m, plus 1.45 g/t Au and 147 g/t Ag (263 g/t AgEq) over 0.4m, plus 1.29 g/t Au and 136 g/t Ag (239 g/t AgEq) over 0.3m
Gold Resource Corporation reported the results of one of its recent step-out drill holes at Don David mine, Oaxaca. This program will consist of 34,000m in 150 holes. Assays detail of hole 523136 are shown in the table below:
“The exceptional width and grade appears to occur at the confluence of two veins (Sandy 1 and Sandy 2) that are part of the Gloria and Three sisters vein arrays in the upper portion of the Mine, located approximately 250 meters below surface”.
Tocvan Ventures Corp., released channel sample results from four trenches cut at its Pilar project, Sonora. Highlights include TR-2023-02 with 1.87 g/t Au and 9 g/t Ag over 22m; and TR-2023-03 with 1.88 g/t Au and 8 g/t Ag over 14m, including 3.65 g/t Au and 17 g/t Ag over 6m.
Prime Mining Corp., reported expansion drill results from its ongoing 60,000m 2023 drilling program at its Los Reyes project, Sinaloa. The company drilled 10 holes at Central-Noche Buena Area and 3 holes at Central-San Miguel East Area. At Central-Noche Buena Area, drilling highlights (true widths reported) include holes 23NB-51 with 3.36 g/t Au and 12 g/t Ag (3.51 g/t AuEq) over 4.97m, including 2.70 g/t Au and 409 g/t Ag (8 g/t AuEq) over 2.56m; hole 23NB-53 with 1.62 g/t Au and 169 g/t Ag (3.81 g/t AuEq) over 2.56m, including 2.77 g/t Au and 420 g/t Ag (8.21 g/t AuEq) over 0.97m, plus 0.27 g/t Au and 81 g/t Ag (1.32 g/t AuEq) over 3.28m, plus 0.42 g/t Au and 65 g/t Ag (1.26 g/t AuEq) over 7.49m; and hole 23NB-52 with 0.45 g/t Au and 60 g/t Ag (1.23 g/t AuEq) over 8.40m, including 1.25 g/t Au and 155 g/t Ag (3.25 g/t AuEq) over 1.55m. At Central-San Miguel East Area, drilling highlights include holes 23SME-37 with 0.55 g/t Au and 60 g/t Ag (1.33 g/t AuEq) over 4.40m, including 2.03 g/t Au and 48 g/t Ag (2.65 g/t AuEq) over 0.65m; and hole 23SME-34 with 0.99 g/t Au and 96 g/t Ag (2.23 g/t AuEq) over 1.40m, including 0.79 g/t Au and 4 g/t Ag (0.85 g/t AuEq) over 5.85m.
Vizsla Silver Corp., released results from 15 holes from its flagship Panuco project, Sinaloa, targeting La Luisa Vein located about 700m west of the Napoleon Area resource. Drilling highlights (true widths reported) include holes NP-23-419 with 58 g/t Ag, 7.74 g/t Au, 0.7% Pb, and 1.4% Zn (650 g/t AgEq) over 3.25m, 50 g/t Ag, 16.74 g/t Au, 0.3% Pb, and 1% Zn (1,220 g/t AgEq) over 0.62m; hole NP-23-397 with 32 g/t Ag, 1.44 g/t Au, 0.2% Pb, and 2.5% Zn (221 g/t AgEq) over 8.70m, including 77 g/t Ag, 6.55 g/t Au, 0.5% Pb, and 1.3% Zn (577 g/t AgEq) over 1.26m, plus 137 g/t Ag, 1.77 g/t Au, 0.4% Pb, and 5.4% Zn (455 g/t AgEq) over 3.55m, including 408 g/t Ag, 2.64 g/t Au, 0.3% Pb, and 18.2% Zn (1,228 g/t AgEq) over 0.70m; hole NP-23-420 with 95 g/t Ag, 6.97 g/t Au, 0.1% Pb, and 0.2% Zn (568 g/t AgEq) over 2.8m, including 116 g/t Ag, 11.5 g/t Au, 0.05% Pb, and 0.07% Zn (888 g/t AgEq) over 1.90; and hole NP-23-401 with 191 g/t Ag, 0.27 g/t Au, 0.04% Pb, and 0.5% Zn (214 g/t AgEq) over 0.90m, plus 386 g/t Ag, 1.43 g/t Au, 0.9% Pb, and 1.7% Zn (542 g/t AgEq) over 1.35m. “Recently completed shallow drilling has confirmed the northern continuation of the Luisa structure, expanding its potential strike-length to 1,670 metres”.
Kootenay Silver Inc., announced results from the last two holes of the 2023 drill program at its Columba project, Chihuahua, which consisted of 12 holes for a total of 3,052.8m designed to extend known mineralization on the “D Vein” target area. Selected highlights for drill hole CDH-23-146 include 501 g/t Ag, 0.3% Pb, and 0.7%Zn over 10.26m, including 2,123 g/t Ag, 1.3% Pb, and 2.2% Zn over 1.54m, including 4,120 g/t Ag, 3.4% Pb, 2.8% Zn over 0.54m. Selected highlights for drill hole CDH-23-147 include 532 g/t Ag, 0.2% Pb, and 0.7% Zn over 8.19m, including 914 g/t Ag, 0.3% Pb, and 0.7% Zn over 1m, plus 777 g/t Ag, 0.6% Pb, and o.7% Zn over 1m. “The current drilling program is designed to extend the D-Vein in preparation of a wider spaced follow up program aimed to delineate a maiden resource expected in late 2024”.
Minera Alamos Inc., announced that it filed on SEDAR the results of the independent Technical Report and estimate of the Mineral Resource for its Santana mine in Sonora.
ON DEALS AND CORPORATE ISSUES
Coeur Mining Inc., appointed a new member to its Board of Directors (Palmarejo mine, Chihuahua).
Defiance Silver Corp., reported results of its annual general meeting of shareholders (San Acacio project, Zacatecas).
Heliostar Metals Limited announced management changes and additions to its Board. The company appointed to its non-executive director with immediately effect to its Board of Directors, and Mr. Charles Funk will add the title and role of President to his current title and responsibilities as Chief Executive Officer (Ana Paula project, Guerrero).
Monumental Energy Corp., appointed a new member to its Board of Directors (Jemi HREE project, Coahuila).
Minera Alamos Inc., reported results from its annual general meeting of shareholders (Santana mine, Sonora).
Almadex Minerals Ltd., granted stock options to Directors, officers, and Employees of the company to purchase an aggregate 1,075,000 common shares in the capital of the Company at an exercise price of $0.21 per share expiring on July 10th, 2028 (San Pedro project, Jalisco).
ON SOCIAL RESPONSIBILITY
No relevant news.
Content like what you have just read can be seen at https://gambusinoprospector.com/ and at LinkedIn’s Mexico Mineral Exploration Group.
On the picture above, hydrothermal breccia with hematite-rich matrix in an epithermal vein system in a project in Zacatecas, Mexico. Photo by Miguel A Heredia.
During the 49th week of the year (December 4th to December 10th, 2023), companies working in Mexico posted 18 news releases. Two companies reported exploration advances on their properties and one released its Q3 2023 report. One company extended the expiry dates of warrants, one company declared dividends, one more closed a gold loan credit facility, while one other arranged a funding package. One company announced a private placement and one more a debt settlement for shares. Two companies released drilling results from their advanced properties. Three companies announced executive appointments and one completed the sale of a property. ON MEXICO ISSUES, no relevant news. ON EXPLORATION, in Sonora, Prismo Metals released drilling results from its Los Pavitos project. In Chihuahua, Kootenay Silver announced drill results from the Columba project. ON MINING, Luca Mining released its Q3 2023 quarterly report. ON FINANCING, Silver Wolf is to extend warrant expiry dates. Argonaut Gold announced a financing round worth C$80 …. to fund mines out from Mexico. Guanajuato Silver closed a US$7.5 M gold loan credit facility, Luca Mining arranged a C$3.6 M funding package. Impact Silver is to raise C$3.5 M. Sailfish declared a quarterly dividend. GR Silver settled a $100 K debt with shares. ON RESOURCES AND DEVELOPMENT, Silver Storm released results from drilling at La Parrilla mine complex in Durango. Pan American Silver released drilling results from La Colorada mine and the adjacent La Colorada Skarn project in Zacatecas. ON DEALS AND CORPORATE ISSUES, Fresnillo plc, Heliostar Metals and Endeavour Silver announced executive appointments. Golden Minerals completed the sale of the Santa Maria property to a Mexican enterprise. ON SOCIAL RESPONSIBILITY, Capstone Copper published its 2022 sustainability report.
ON MEXICO ISSUES
No Relevant News
ON EXPLORATION
Prismo Metals Inc. announced results from the second group of drill holes completed at the 5,300 ha Los Pavitos project in Sonora. Highlighted true width intervals comprise 2.6 m @ 2.33 gpt Au, 88 gpt Ag (including 0.8 m @ 3.58 gpt Au); 3.7 m @ 0.51 gpt Au, 106 gpt Ag; 1.8 m @ 0.31 gpt Au, 6 gpt Ag; 1.3 m @ 1.20 gpt Au, 8 gpt Ag; 23.4 m @ 0.16 gpt Au, 2 gpt Ag; 5.7 m @ 0.19 gpt Au, 6 gpt Ag, 0.5% Zn; 6.4 m @ 0.18 gpt Au, 7 gpt Ag (including 2.6 m @ 0.23 gpt Au, 16 gpt Ag, 0.2% Pb, 0.1% Zn); 2.6 m @ 2.33 gpt Au, 88 gpt Ag, 0.2% Pb, 0.2% Zn; 2.3 m @ 0.34 gpt Au, 4 gpt Ag; 4.8 m @ 0.11 gpt Au, 2 gpt Ag; 3.5 m @ 0.15 gpt Au. Las Auras and Southeast Santa Cruz add to the La Hedionda and La Cruz areas with interesting Au mineralization intersected in this drill program.
Kootenay Silver Inc. released results from additional holes of its current drilling program at Columba, in Chihuahua. The current program has been completed with 3,052.8 m in 12 holes aimed to extend the known mineralization in the “D Vein” target area. Highlighted core length intervals comprise 121.0 m @ 60 gpt Ag, 0.1% Zn (including 2.88 m @ 224 gpt Ag, 0.2% Pb, 0.5% Zn); 10.63 m @ 108 gpt Ag; 5.10 m @ 54 gpt Ag; 22.0 m @ 174 gpt Ag (including 6.0 m @ 435 gpt Ag, 0.1% Pb, 0.2% Zn and 3.0 m @ 544 gpt Ag, 0.1% Pb, 0.2% Zn).
ON MINING
Luca Mining Corp. announced its financial and operating results for the third quarter 2023. At Campo Morado, in Guerrero, 128.3 K tonnes were processed, averaging 2.51% Zn, 0.77% Cu, 0.74% Pb, 1.62 gpt Au, 100.9 gpt Ag, recovering 72.6% Zn, 47.8% Cu, 28% Au, 36.6% Ag, to produce 5,094 tonnes of Zn concentrate @ 45.9% Zn, 4.08 gpt Au, 450 gpt Ag and a bulk Cu-Pb concentrate averaging 14.8% Cu, 11.72 gpt Au, 753 gpt Ag. At Tahuehueto, in Durango, 19.4 K tonnes were processed, averaging 3.27% Zn, 1.34% Pb, 3.05 gpt Au, 32.8 gpt Ag, recovering 64.1% Zn, 79.4% Pb, 82.3% Au, 82.7% Ag, to produce 782 tonnes of Zn concentrate averaging 52.2% Zn, 8.70 gpt Au, 117.1 gpt Ag and 487 tonnes of Pb concentrate averaging 38.4% Pb, 79.95 gpt Au, 794.1 gpt Ag. At Tahuehueto, the plant capacity is to ramp up to commercial production at 1,000 tpd in early 2024, and is expected to produce 40 K Oz AuEq per year. At Campo Morado an optimization program with the cooperation of Ausenco is expected to increase revenue by 40% in 2024.
ON FINANCING
Silver Wolf Exploration Ltd. intends to extend the expiry dates for the 4 M warrants granted by Silver Wolf in June 2022. The warrants that were to expire in December 16, 2023 are now set to expire in December 2024, as approved by the board of directors (Ana Maria, Durango).
Argonaut Gold Inc. entered into an agreement with a syndicate of underwriters co-led by Cormark Securities Inc., BMO Capital Markets and Scotiabank pursuant to which the Co-lead underwriters have agreed to purchase for resale on a “bought deal” basis shares for gross proceeds of C$80 M. “The net proceeds of the Offering will be used to fund development and optimization of the Company’s Magino and Florida Canyon Mines (Not in Mexico) and for general working capital purposes” (La Colorada, Sonora).
Guanajuato Silver Company Ltd. closed a US$7.5 M gold loan credit facility financing with Ocean Partners UK Ltd. The unsecured loan facility is for a 36-month term repayable on 30 monthly installments of 191 Oz Au following a 6-month grace period. Approximately US$4.6 M will be used to pay an outstanding loan due to Ocean Partners, “the remainder of the funds will be used for capex initiatives at the Company’s El Cubo Mines Complex and Valenciana Mines Complex, as well as for general working capital purposes” El Cubo and Valenciana, Guanajuato).
Luca Mining Corp. arranged a funding package for the mine optimization program at Campo Morado, in Guerrero. Luca has secured the C$3.6 M budgeted for the program, which includes mine and mill equipment, process control and operator training. The total funding package includes a C$2 M private placement and a US$2.5 M debt facility. Furthermore, the Trafigura debt converts a US$5.8 M loan to a non-interest bearing convertible loan and a C$11 M+ debt with Latapi is settled writing off C$3M+ and converting the remaining C$7.9 M to equity at C$0.45 per share. The optimization plan envisages over 20% and 5% improvements in Cu and Zinc respectively to produce clean Cu, Zn and Pb concentrates with higher grades.
Impact Silver Corp. announced a non-brokered private placement financing to raise gross proceeds of up to C$2.7 M, which later on the week was upsized to C$3.5 M (Plomosas, Chihuahua).
Sailfish Royalty Corp. declared the company’s fourth quarterly dividend for 2023, in the amount of US$0.0125 per common share (Gavilanes, Durango).
GR Silver Mining Ltd. settled aggregate debt of $100.8 K with arm’s length and non-arm’s length creditors, in consideration for 1.34 M shares are to be issued, with a hold period of four months (Plomosas, Sinaloa).
ON RESOURCES AND DEVELOPMENT
Silver Storm Mining Ltd. announced drill results from La Parrilla mine complex, in Durango. Core length highlighted intervals comprise 0.68 m @ 213 gpt Ag, 0.12 gpt Au, 3.4% Pb, 7.1% Zn; 1.0 m @ 259 gpt Ag, 0.17 gpt Au, 5.6% Pb, 2.8% Zn; 14.80 m @ 259 gpt Ag, 0.17 gpt Au, 5.6% Pb, 2.8% Zn (Including 7.14 m @ 310 gpt Ag, 0.15 gpt Au, 6.9% Pb, 5.2% Zn and 4.36 m @ 360 gpt Ag, 0.31 gpt Au, 7.2% Pb, 1.0% Zn); 1.11 m @ 594 gpt Ag, 0.17 gpt Au, 6.8% Pb, 0.4% Zn; 0.45 m @ 238 gpt Ag, 0.11 gpt Au, 1.1% Pb, 0.1% Zn. “The Quebradillas Mine continues to deliver high-grade silver results within immediate proximity to the existing underground development and services”.
Pan American Silver Corp. released drill results from some its main properties, including intervals from La Colorada mine and La Colorada Skarn in Zacatecas. At La Colorada mine drilling is defining the east extension of the NC2, Veta 3, Amolillo veins and minor splays. Highlighted true width intervals comprise 1.33 m @ 1,455 gpt Ag, 4.4% Pb, 1.3% Zn; 1.05 m @ 2,804 gpt Ag, 1.6% Pb, 1.3% Zn; 1.33 m @ 4,067 gpt Ag, 0.8% Pb, 1.8% Zn; 2.58 m @ 1,171 gpt Ag, 1.0% Pb, 0.8% Zn; 1.74 m @ 320 gpt Ag, 5.9% Pb, 15.6% Zn; 2.09 m @ 675 gpt Ag, 1.9% Pb, 5.8% Zn; 1.25 m @ 349 gpt Ag, 3.0% Pb, 7.6% Zn. At La Colorada Skarn, adjacent to La Colorada mine, exploration drilling continued to define and expand the current resource hosted in three distinct orebodies. Highlighted core length intervals comprise 328.45 m @ 71 gpt Ag, 2.6% Pb, 3.8% Zn; 332.40 m @ 144 gpt Ag, 4.1% Pb, 4.8% Zn (including 89.85 m @ 461 gpt Ag, 10.6% Pb, 11.0% Zn); 439.5 m @ 72 gpt Ag, 2.1% Pb, 3.3% Zn; 273.95 m @ 82 gpt Ag, 2.8% Pb, 3.3% Zn; 360.05 m @ 53 gpt Ag, 3.7% Pb, 3.4% Zn; 430.05 m @ 28 gpt Ag, 1.2% Pb, 4.0% Zn.
ON DEALS AND CORPORATE ISSUES
Fresnillo plc. created two executive roles for its operations and projects. As COO Central Tomás Iturriaga is to manage Fresnillo, Saucito, Juanicipio, Orisyvo and Guanajuato. As COO of the Northern Region Daniel Diez is to oversee Herradura, Ciénega, San Julián, Tajitos Rodeo and Capricornio.
Heliostar Metals Ltd. appointed Mr. Gregg Bush as chief operating officer (COO) for the company. ““Attracting a mine builder with the wealth and depth of experience as Gregg is a significant step forward for Heliostar” (Ana Paula, Guerrero).
Endeavour Silver Corp. announced the appointment of Elizabeth Senez as chief financial officer (CFO), effective January 1, 2024 (Terronera, Jalisco).
Golden Minerals Co. completed the previously announced sale of its interests in the Santa Maria property, in Chihuahua, to Transformaciones y Servicios Metalurgicos S.A. de C.V. (TSM). Upon closing Golden received US$1.5 M plus US$0.24 M in value-add tax, with the latter to be used to offset its current VAT receivable. In addition, TSM granted Golden 1.5% NSR, capped at US$1 M. TSM may purchase from Golden the right to receive the NSR for US$0.5 M at any time prior to the beginning of commercial production at Santa Maria.
ON SOCIAL RESPONSIBILITY
Capstone Copper Corp. published its 2022 sustainability report. “The report has been prepared in accordance with the Global Reporting Initiative (“GRI”) Standards and the SASB Metals and Mining Sustainability Accounting Standard.”
On the image below: Silicified ridge on a project of the Sonoran Desert. Picture by Jorge Cirett.
During the 47th week of the year (November 19th to November 26th, 2023), companies working in Mexico posted 22 news releases. Four companies reported exploration advances on their properties, three companies released Q3 2023 reports, one on metallurgical test results and one more on new concentrate production. One company announced the repurchase of part of its shares, one a financing round, one an incentive warrant program and one more the payment of dividends. One company released drilling results from a past producing mine, and one other filed a technical report on its property. One company reported on the acquisition of additional land adjacent to its mining operations, and two more on the appointment of directors. ON MEXICO ISSUES, the country has attracted US$2,737 M of direct foreign investment on mining this year. ON EXPLORATION, in Sonora, Aztec Minerals has completed seven RC holes at Cervantes; Colibri Resource and Silver Spruce updated on project work at Diamante. In Chihuahua, Kootenay Silver released results from three holes at Columba. In Zacatecas, Radius Gold presented the results of the last drill hole at Tropico. ON MINING, Impact Silver, Bear Creek Mining and Guanajuato Silver presented Q3 2023 production results. Luca Mining presented results from metallurgical tests at Campo Morado. Golden Minerals begun to produce gold-bearing pyrite concentrates at Velardeña. ON FINANCING, Teck Resources intends to repurchase up to 7.8% of its shares. Oroco Resource launched a financing round for up to $2.5 M. Heliostar Metals is encouraging the early exercise of share purchase warrants. Alamos Gold declared a quarterly dividend. ON RESOURCES AND DEVELOPMENT, Silver Storm released results from drilling at La Parrilla past-producing mine in Durango. Sonoran Desert filed a technical report on the Cuatro Hermanos property in Sonora. ON DEALS AND CORPORATE ISSUES, Coeur Mining signed a purchase agreement with Fresnillo PLC to acquire mining concessions adjacent to its mining operations at Palmarejo in Chihuahua. Osisko Development and Orla Mining announced the appointment of directors. ON SOCIAL RESPONSIBILITY, no relevant news.
ON MEXICO ISSUES
According to information from the Economy Secretariat (Secretaría de Economía) Mexico has attracted US$2,737 M of direct foreign investment on mining this year, and US$9,089 M during the first five years of the present administration.
According to Camimex, in a note published on El Economista, three companies control 80% of mining production by Mexican enterprises: Grupo Mexico, Fresnillo PLC and Peñoles.
ON EXPLORATION
Radius Gold Inc. provided results from the last of hole of the 1,300 m diamond drilling program at the Tropico project in Zacatecas. Highlighted intervals comprise 9.02 m @ 0.11 gpt Au; 1.53 m @ 0.33 gpt Au; 4.58 m @ 0.22 gpt Au; 19.82 m @ 0.15 gpt Au. “Drilling defined a large gold mineralized breccia body that starts at surface and to date defined 250m down dip….. The drilling encountered wide zones of classic low sulphidation epithermal alteration, high level chalcedonic silica, banded stockwork and massive quartz veining, and breccias with gold mineralization, but not significant high grade mineralization”.
Aztec Minerals Corp. announced the completion of the first seven holes of the current drilling program at Cervantes, in Sonora. The eleven-hole reverse circulation drilling program envisages 1,650 m of which 963 m have already been completed in the California zone, while step-out drilling is to focus in expansion. Results are pending. “The gold mineralization is characterized by oxidized and unoxidized stockwork veinlets of A, B, and C types and disseminated sulfide sites, with silicification and phyllic alterations. Potassic alteration is present in places and is associated with mineralization as well”.
Colibri Resource Corp. and JV partner Silver Spruce Resources Inc. report the discovery of Au-Ag showings on the Diamante property in Sonora. Recent work in the property includes geological mapping, evaluation and sampling of historical showings, collection and assaying of 49 stream sediment samples and 60 outcrop samples. New mineralized showings in the northern and southern parts of the concession returned assays of 3.52 gpt Au, 121 gpt Ag; 0.122 gpt Au, 197 gpt Ag; 0.818 gpt Au, 5 gpt Ag; 0.749 gpt Au, 2 gpt Ag; 3.34 gpt Au, 20 gpt Ag. The Diamante property exhibits characteristics of “epithermal low to intermediate sulfidation Ag-Au (Pb-Zn), high sulfidation Au-Cu, and potential transition zones within and peripheral to porphyry style Au-Cu mineralization”.
Kootenay Silver Inc. announced results from three additional drill holes at its Columba project in Chihuahua. The drill program envisages 3,000 m on 12 to 15 holes to extend known mineralization on the “D” vein target area. Highlighted core length intervals comprise 29 m @ 208 gpt Ag, 0.2% Pb, 0.5% Zn (including 9.67 m @ 510 gpt Ag, 0.2 gpt Au, 0.5% Pb, 1.0% Zn; which includes 2.37 m 1,142 gpt Ag, 0.1 gpt Au, 0.9% Pb, 2.5% Zn), 10.1 m @ 152 gpt Ag, 0.2% Pb, 0.4% Zn; 3.1 m @ 308 gpt Ag, 0.1% Pb, 0.3% Zn (including 1.56 m @ 532 gpt Ag, 0.2% Pb, 0.4% Zn). “Columba hosts an extensive network of intermediate-style epithermal quartz, carbonate +/- barite veins aligned into two broadly cross-cutting orientations. Fieldwork to date has identified numerous mineralized structures across the project measuring up to 4 kilometres in length.”
ON MINING
Luca Mining Corp. announced results from its optimization program at the Campo Morado mine in Guerrero. A bulk concentrate is being produced with greater than 70% Cu recovery, up from the historical 35-40% recovery range. “Overall zinc recovery is expected to increase from 76% to 86% and the final concentrate grade increases from 46% to 56% zinc over the next 12 months…. Ausenco have conducted a range of laboratory testing, initially of zinc circuit feed samples, to study the potential for improved zinc circuit stage recoveries. With a series of changes to reagents and other operational parameters in flotation in the plant, overall zinc recovery increased from 75% to 82% and the final concentrate grade from 45% to 51% zinc”. Additional work is being conducted to produce clean and higher-grade Cu and Pb concentrates.
Golden Minerals Co. has begun producing gold-bearing pyrite flotation concentrate from its Velardeña properties in Durango. “The Company is processing material that has been stockpiled at Velardeña since the mines last operated in 2015”. Recent favorable market terms for Au bearing pyrite/arsenopyrite concentrate are now economic to process and sell.
Impact Silver Corp. announced its financial and operating results for the third quarter 2023. At Zacualpan, in Estado de Mexico, throughput was 37.2 K tonnes @ 162 gpt Ag. At Plomosas, in Chihuahua, Impact has completed the final steps to get back online the 200 tpd zinc mine. “Exploration potential at Plomosas is exceptional with only 600m of the 6-kilometre-long structure assessed”. The company invested $3.8 M in exploration expenditures and mining assets, with a cash position at quarter-end of $8.9 M and working capital of $8.7 M.
Bear Creek Mining Corp. reported results for Q3 2023. At the Mercedes mine in Sonora, 123.5 K tonnes were mined @ 2.79 gpt Au, with 126.2 K tonnes processed averaging 2.40 gpt Au, recovering 93.4% Au to produce 9,155 Oz Au, 33.7 K Oz Ag. During the period the company entered into a restructuring agreement with Equinox Gold Corp. to convert a $26 M current liability into a non-current obligation by issuing a convertible promissory note at a competitive interest rate. A second restructuring agreement was signed with Sandstorm Gold Ltd. to reduce near-term Au and Ag stream delivery obligations and refinance and extend debt. A C$9.5 M private placement was completed also during the period. Mining methods have been changed to sub-level caving at the San Martin deposit and sub-level stoping at the Marianas deposit. Average mining costs have decreased from $80.84 per tonne mined to $68.37 during the year (15% decrease). The Mercedes structural trend has contributed with “over 580,000 ounces of gold to the mine’s historical production since 2011”. Production from the San Martin deposit increased from 400 tpd to almost 600 tpd during Q3 and is expected to reach 800 tpd during Q4 2023.
Guanajuato Silver Company Ltd. released financial and operating results for Q3 2023. Consolidated production from Valenciana and El Cubo mines in Guanajuato and from Topia in Durango comprises 134.9 K tonnes mined, 132.5 K tonnes milled, to produce 425.5 K Oz Ag, 3,441 Oz Au, 935.8 K Lb Pb, 857.7 K Lb Zn, or 787.1 K Oz AgEq at cash cost $20.79 per Oz AgEq and an AISC of $26.22 per Oz AgEq.
Sailfish Royalty Corp. announced operating and financial results for Q3 2023. No information was provided on the Gavilanes property in Durango, Sailfish’s only significant exploration property in Mexico.
ON FINANCING
Teck Resources Ltd. is to establish a normal course issuer bid to purchase up to 40 M Class B shares from November 2023 to November 2024, representing 7.8% of the outstanding Class B shares, or 7.9% of the public float, as at November 15, 2023. “Teck is making the normal course issuer bid because it believes that the market price of its Class B Shares may, from time to time, not reflect their underlying value and that the share buy-back program may provide value by reducing the number of shares outstanding at attractive prices. All repurchased shares will be cancelled” (San Nicolas, Zacatecas).
Oroco Resource Corp. announced a non-brokered private placement to raise gross proceeds of up to $2.5 M (Santo Tomas, Sinaloa).
Heliostar Metals Ltd. updated on its incentive warrant program designed to encourage the early exercise of share purchase warrants. To date, holders of 14.37 M outstanding warrants have committed to participate in the warrant incentive program, which if exercised would result in gross proceeds of $4.6 M (Ana Paula, Guerrero).
Alamos Gold Inc. declared a quarterly dividend of US$0.025 per common share. Alamos has paid dividends for 14 consecutive years, during which time $324 M has been returned to shareholders through dividends and share buybacks, including $40 M thus far in 2023 (Mulatos, Sonora).
ON RESOURCES AND DEVELOPMENT
Silver Storm Mining Ltd. released results from two more holes at La Parrilla, in Durango. Highlighted core length intervals comprise 0.82 m @ 419 gpt Ag, 0.53 gpt Au, 0.09% Cu, 12.3% Pb, 10.7% Zn; 0.44 m @ 200 gpt Ag, 0.19 gpt Au, 0.10% Cu, 6.6% Pb, 8.8% Zn; 1.77 m @ 25 gpt Ag, 4.07 gpt Au, 0.06% Cu, 0.1% Pb; 2.28 m @ 67 gpt Ag, 0.04 gpt Au, 0.02 % Cu, 3.1% Pb, 3.2% Zn; 8.72 m @ 125 gpt Ag, 0.04 gpt Au, 0.06% Cu, 2.4% Pb, 4.8% Zn; 1.05 m @ 322 gpt Ag, 0.16 gpt Au, 0.07% Cu, 9.5% Pb, 15.8% Zn. One of these high-grade intercepts is 97 m below the last mine development, while another high-grade replacement zone was identified. An unusual tourmaline breccia pipe was intersected, returning 1.77 m @ 4.07 gpt Au. “Drill results from the Quebradillas mine have enhanced our understanding and confidence that the La Parrilla Mine can be brought back online. In 2024, Silver Storm will proceed with technical studies targeting the re-establishment of mining operations in 2025.”
Sonoran Desert Corp. filed the NI 43-101 compliant technical report on the Cuatro Hermanos project in Sonora. The Mineoro Explorations LLC produced report states mineralization is of Porphyry Cu-Mo style associated to a porphyry intrusive complex hosted in an andesitic volcanic sequence, with Cu-Mo mineralization forming subvertical orebodies related to magmatic breccias and possibly tabular bodies of more than 3 Km along strike. Modelling suggests the Main and West zones might be connected, and that deeper drilling is needed. Recommended activities include relogging of core and RC drilling chips from the 2007-2008 campaigns, check assays on 10% of the pulps, drilling the West zone at 100 m spacing, deeper drilling, twinning of some holes, RC drilling and column leach test on the South Conglomerates (Exotic Cu target), begin metallurgical testing of oxides and sulfides, tie surface access agreements and commence permitting for drilling.
ON DEALS AND CORPORATE ISSUES
Coeur Mining Inc. signed a purchase agreement with Fresnillo PLC to acquire mining concessions adjacent to the Palmarejo complex in Chihuahua. The concessions comprise 2,833 ha, including the southeast extension of the Independencia and Nacion deposits, currently being mined at the Palmarejo property, and to the northeast a concession that surrounds “multiple targets containing mineralization and historic resources that were added through the 2015 acquisition of Paramount Gold and Silver. The terms of the transaction include a $10 M payment upon closing, an additional $10 M one year after closing and an additional $5 M two years after closing. The concessions will be subject to a royalty payment of $25 per Oz for each new Oz AuEq of resource discovered between 450 K and 2 M Oz AuEq.
Osisko Gold Royalties Ltd. announced Mr. Sean Roosen resigned as a director in order to focus on his role as CEO and Chair of the Board of Directors of Osisko Development Corp. (San Antonio, Sonora).
Orla Mining. Ltd. appointed Mr. Rob Krcmarov as an independent director of the company (Camino rojo, Zacatecas).
ON SOCIAL RESPONSIBILITY
No Relevant News.
On the image below: Quartz-specularite vein in a Sonoran Desert project. Picture by Jorge Cirett.
During the 45th week of the year (November 6th to November 12th, 2023), companies working in Mexico posted 29 news releases. Two companies reported exploration advances on their properties and twelve companies released Q3 2023 reports. Two companies informed on financing rounds, one on the granting of share options and one more on its share consolidation process. One company amended the terms on a property acquisition, one is reviewing its strategic options forward, one more is waiting for mining permits and two announced director’s appointments. ON MEXICO ISSUES, Ganfeng Lithium Company is trying to negotiate with the Mexican government the recent cancellation of its mining concessions in Sonora. ON EXPLORATION, In Chihuahua, Mammoth Resources presented metallurgical results from Tenoriba. In Zacatecas, Radius Gold presented drilling results from Tropico. ON MINING, Capstone Copper, Endeavour Silver, Gold Resource, Pan American Silver, Aura Minerals, Gatos Silver, Fortuna Silver, SilverCrest Metals, Coeur Mining, Avino Silver, Golden Minerals and MAG Silver presented Q3 2023 production results. ON FINANCING, Tocvan Ventures is to close a CAD$500 K financing round. Golden Minerals closed a US$4.2 M public offering. Minaurum Gold granted stock options to directors, officers and consultants. Kootenay Silver announced the consolidation of its shares. ON RESOURCES AND DEVELOPMENT, Heliostar Metals reported drilling results from its Ana Paula project in Guerrero. Prime Mining reported on drilling at its Los Reyes project in Sinaloa. ON DEALS AND CORPORATE ISSUES, Pantera Silver amended the terms on the acquisition of the Nuevo Taxco project in Guerrero. Bear Creek Mining announced the appointment of directors of the company. Gold Resource is reviewing its strategic alternatives, including the potential sale of the company. Minaurum Gold announced the appointment of Rubén Padilla to the board of directors. Osisko Development is waiting for mining permits at San Antonio, in Sonora. ON SOCIAL RESPONSIBILITY, Argonaut Gold, SilverCrest Metals and Avino Silver presented information on their impact on communities.
ON MEXICO ISSUES
Ganfeng Lithium Company is trying to negotiate with the Mexican government the recent cancellation of its mining concessions in Sonora.
ON EXPLORATION
Radius Gold Inc. provided an update of drilling at its Tropico project in Zacatecas. The company completed an initial 1,300 m diamond drill program in eight holes, with assays received for the first seven holes. Drilling is planned to resume upon the receipt of remaining assays. Highlighted core length results comprise 29.18 m @ 0.34 gpt Au, 4 gpt Ag; 30.10 m @ 0.35 gpt Au, 3 gpt Ag; 44.20 m @ 0.28 gpt Au, 2 gpt Ag; 28.52 m @ 0.28 gpt Au, 3 gpt Ag; 36.25 m @ 0.55 gpt Au, 9 gpt Ag (including 7.52 m @ 1.40 gpt Au, 29 gpt Ag); 12.30 m @ 0.44 gpt Au, 3 gpt Ag. “The expected hydrothermal breccia pipe was not found vertically below the sinter as predicted by the geophysics, instead is rather un-expectedly dipping at 45o east and has now been defined under soil cover 200m to the east of the outcropping target”.
Mammoth Resources Corp. announced results from bottle roll tests performed on three composite samples of assay reject sample material of drill holes from the Carneritos area of its Tenoriba property in Chihuahua. Results from oxide material reached 92% and 88% dissolution Au and 55% Ag in 12 hours and 94% and 91% Au, 59% Ag after 96 hours. Results for the oxidized-sulfide transition material reached 72% Au, 61% Ag in 12 hours and 75% Au, 64% Ag in 96 hours. “Based on the success from these initial bottle roll tests, Mammoth has commenced testing a coarser fraction of the oxidized and mixed oxidized-sulfide zone material and preliminary tests of a sulfide sample and looks forward to reporting on these results in the near future”.
ON MINING
Capstone Copper Corp. reported financial results for Q3 2023, including figures from its Mexican operations. Of a consolidated production of 40.3 K tonnes Cu during the quarter, 5.9 K tonnes were produced at Cozamin, in Zacatecas, at $1.85 cash cost per Lb Cu. “Q3 2023 infill drilling at the Mala Noche Main Vein West Target was on hold while the development of the lower elevation mine cross-cut was completed. Infill drilling will recommence in early Q4 2023 to support an updated mineral resource estimate in 2024”.
Endeavour Silver Corp. announced financial and operating results for Q3 2023. Consolidated production at the Bolañitos (Guanajuato) and Guanaceví (Durango) mines during the quarter of 1.46 M Oz Ag, 9,089 Oz Au (1.87 M Oz AgEq) at cash cost $17.94 per Oz Ag and ASIC of $24.10 per Oz Ag. “Cost metrics were significantly impacted by lower production at the Guanaceví mine and increased operating development resulting from mine sequencing changes required to focus on improved access and ventilation as well as plant maintenance required during the last week of September”. Cash position of $41 M and working capital of $75.9 M by the end of the period. During the quarter $23.4 M were raised, primarily to fund the Terronera mine construction.
Gold Resource Corp. presented operational results for the year to date from its Don David mine in Oaxaca. A total of 14,777 Oz Au, 778 K Oz Ag, 8,772 tonnes Zn, 904 tonnes Cu, 3,681 tonnes Pb were produced on the year to date at total cash cost after co-product credits of $1,389 per Oz AuEq on the last quarter. At the quarters end the company had a cash balance of $6.7 M with no debt and working capital of $13.8 M.
Pan American Silver Corp. reported results for the third quarter 2023, without disclosing production figures by project. The company produced 5.7 M Oz Ag, 244.2 K Oz Au, with a silver segment cash cost of $13.13 and an AISC of $18.19, to end the period with $832.1 M, inclusive of cash and investments of $386 M, a $750 M revolving line of credit and $809 M of total debt primarily related to the acquisition of Yamana. At La Colorada, in Zacatecas, “the Company invested $14.0 million of project capital in Q3 2023 to advance the La Colorada Skarn project, largely for exploration and the preliminary economic study underway, as well as advancing the excavation of the concrete-lined ventilation shaft”. The preliminary economic study for the project is to be released by year-end 2023.
Aura Minerals Inc. filed consolidated financial statements for the period ended on September 30th 2023. Consolidated production from all its mines reached 64,875 Oz AuEq, of which 27,933 Oz AuEq were produced at Aranzazu, in Zacatecas. The AISC of consolidated production was $1,437 per Oz Au. Aura Minerals ended the quarter with a cash balance of $179 M and a net debt of $112.1 M.
Gatos Silver Inc. announced third quarter 2023 financial and operating results. The company has a 70% interest in the Cerro Los Gatos mine in Chihuahua, which processed 268.3 K tonnes at a rate of 2,916 tpd, averaging 0.30 gpt Au, 285 gpt Ag, 1.84% Pb, 3.82% Zn, to produce 1.28 K Oz Au, 2.22 M Oz Ag, 9.5 M Lb Pb, 13.8 M Lb Zn, or 3.46 M Oz AgEq at co-product cash cost of $14.42 and a co-product AISC of $17.64 per Oz AgEq. As of October 31, 2023, the company had $57.7 M in cash, no debt and a $50 M revolving credit facility available.
Fortuna Silver Mines Inc. reported financial and operating results for the third quarter 2023. The company consolidated production from its operations in several countries was 94,821 Oz Au, 1.68 M Oz Ag. At the San Jose mine in Oaxaca, 247.5 K tonnes were processed at a rate of 2,845 tpd, grading 189 gpt Ag, 1.14 gpt Au, recovering 91% Ag, 91% Au, to produce 1.37 M Oz Ag, 8,205 Oz Au, at a cash cost of $13.84 per Oz AgEq and an AISC of $18.04 per Oz AgEq. Infill drilling led to the discovery of the Yessi vein, a blind structure 200 m horizontally from existing underground infrastructure, with highlighted true width intercepts of 9.9 m @ 1,299 gpt AgEq and 5 m @ 621 gpt AgEq.
SilverCrest Metals Inc. released its financial results for the third quarter of 2023 and expanded on October 2023 operational results from Las Chispas mine, in Sonora. During the period the company mined 83,800 tonnes, processing 114,500 tonnes at a daily rate of 1,245 tpd, averaging 4.35 gpt Au, 413 gpt Ag, recovering 98.3% Au, 98.1% Ag to produce 15,700 Oz Au, 1.49 M Oz Ag at cash cost $6.53 per Oz AgEq and an AISC of $12.23 per Oz AgEq. During the quarter 14,183 m of exploration drilling was completed, 83% in resource conversion and the rest in new vein targets, at a cost of $2.8 M. By the end of the Period SilverCrest held 70.0 M in cash and 11.7 M in bullion.
Coeur Mining Inc. reported third quarter 2023 financial results including figures from its operations in Mexico. At Palmarejo, in Chihuahua, 501.7 K tonnes were milled, averaging 1.71 gpt Au, 114.1 gpt Ag, recovering 97.6% Au, 86.9% Ag to produce 26,870 Oz Au, 1.60 M Oz Ag at CAS of $917 per Oz Au and CAS of $15.56 per Oz Ag. “The focus of exploration has transitioned from primarily mapping and sampling to more intensive drilling from four rigs during the quarter compared to one rig in the previous quarter…. focused on finding the intersection of structures where there is potential for a higher-grade shoot”. During the period Palmarejo apported 34% of the gold and 69% of the silver produced by Coeur, at the lowest costs per ounce. Full-year production is expected be 100 to 112.5 K Oz Au, 6.5 to 7.5 M Oz Ag at Palmarejo. Coeur ended the quarter with $53 M in cash and $220 M available capacity under its $390 M revolving credit facility and $7 M of marketable securities.
Avino Silver & Gold Mines Ltd. released consolidated financial results for the third quarter 2023. At the Avino mine in Durango, 154.5 K tonnes were milled to produce 237 K Oz Ag, 2,077 Oz Au, 1.14 M Lb Cu, or 591.2 K Oz AgEq at cash cost $16.90 per Oz AgEq. Recent deep drilling indicates that “The vein system continues to be open along strike and at depth”. At the end of the period Avino had $1.85 M in cash and $7.44 M in working capital.
Golden Minerals Co. released financial results and business summary for the quarter ending on September 30, 2023. The company is working on “permitting, equipment readiness, arrangements with union staff, contract miners, plant operators and support personnel. The Velardeña mines last operated in November 2015”. Also during the period a PEA report for the Velardeña properties in Durango was filed. Mining activities were concluded at Rodeo, in Durango in June 2023, and continued processing stockpiled material until August, with the pouring of the last doré in September. At the end of the period Golden Minerals held $1.6 M in cash and no debt.
MAG Silver Corp. announced unaudited financial results for Q3 2023. At Juanicipio (Fresnillo PLC 56% / MAG Silver 44%) in Zacatecas, 313.1 K tonnes were mined, 322.2 K tonnes processed @ 523 gpt Ag, 1.32 gpt Au, 1.33% Pb, 2.25% Zn, to produce 4.29 M Oz Ag, 7.76 K Oz Au, 7.69 M Lb Pb, 9.59 M Lb Zn at cash cost $4.68 per Oz Ag and an AISC of $9.19 per Oz Ag. The Juanicipio processing facility has achieved nameplate capacity, with Ag recovery above 88%. By the end of the period MAG held working capital of $55.1 M, including cash of $58.5 M and no long-term debt.
ON FINANCING
Tocvan Ventures Corp. announced the incoming closing a non-brokered private placement for gross proceeds of up to CAD$500 K (Pilar, Sonora).
Golden Minerals Co. announced and closed during the week a public offering, raising US$4.2 M (Velardeña, Durango).
Minaurum Gold Inc. granted 1.75 M common share stock options to directors, officers and consultants (Alamos Silver, Sonora).
Kootenay Silver Inc. announced that the 10 to 1 consolidation of the outstanding common shares of the company will be made effective on November 14, 2023 (Columba, Chihuahua).
ON RESOURCES AND DEVELOPMENT
Heliostar Metals Ltd. reported results from two diamond drill holes at the Parallel Panel target at the Ana Paula project in Guerrero. This target is 50 m north of the High Grade Panel, and was identified over the last few months. Highlighted core length intervals comprise 14.75 m @ 5.06 gpt Au (including 5.3 m @ 11.7 gpt Au); 18.1 m @ 2.3 gpt Au; 147.05 m @ 4.13 gpt Au (including 16 m @ 11.2 gpt Au and 7.0 m @ 14.5 gpt Au and 8.6 m @ 8.70 gpt Au). “The new holes demonstrate good continuity of width and grade within the Parallel Panel”.
Prime Mining Corp. reported expansion drilling results from Los Reyes project in Sinaloa. Highlighted true width intervals comprise 20.10 m @ 2.11 gpt Au, 29 gpt Ag (including 6.30 m @ 5.74 gpt Au, 43 gpt Ag); 5.50 m @ 1.06 gpt Au, 73 gpt Ag (including 1.80 m @ 2.57 gpt Au, 79 gpt Ag); 4.45 m @ 1.04 gpt Au, 8 gpt Ag (including 1.00 m @ 3.26 gpt Au, 20 gpt Ag). “Today’s results, along with previously released holes in this area, have extended mineralization approximately 250m down-dip from the May 2023 resource pits”. There are now six rigs operating at Los Reyes, extending the high-grade Z-T area shoots at depth and along strike, expanding the two other resource areas and exploring new generative targets. “Prime has completed over 48,000 m of its planned 60,000 m 2023 drill program”.
ON DEALS AND CORPORATE ISSUES
Pantera Silver Corp. amended the terms of the Nuevo Taxco option agreement to acquire the 1,100-ha project in Guerrero. Under the new terms Pantera is to issue 1.5 M shares in lieu of making a final cash $150 K payment. A final 2 M shares payment will be due on October 30th, 2024 and under the amended terms the vendor has the option to accept the 2 M shares or $150 K cash plus 500 K shares. The final $800 K work commitment has been extended to be competed before the end of 2025.
Bear Creek Mining Corp. announced the appointment of Ms. Sandra Daycock Ms. Susan Toews as directors of the company, and Mr. Brian Peer to the position of Chief Operating Officer (Mercedes, Sonora).
Gold Resource Corp. presented a review of strategic alternatives. “Notwithstanding the technical successes …… in light of the continued challenges facing the Company, the Company’s Board of Directors has decided to initiate a formal review process, with the assistance of outside financial and legal advisors, to evaluate strategic alternatives for the Company. The comprehensive process will begin immediately and will evaluate a broad range of options to maximize shareholder value, including a potential sale of the Company”.
Minaurum Gold Inc. announced the appointment of Dr. Ruben Padilla, PhD to the board of directors (Alamos Silver, Sonora).
Osisko Development Corp. presented its third quarter 2023 report, with a few lines on the San Antonio project in Sonora. The company produced 13,591 Oz Au from the San Antonio heap leach since commencing processing of stockpiled inventory in Q1 2022. During Q3 production from the remaining stockpile inventory was completed, with no further production envisaged. “The Company awaits next steps from the government of Mexico with respect to the permitting process”.
ON SOCIAL RESPONSIBILITY
Argonaut Gold Inc. released its 2022 Environmental, Social, and Governance (ESG) Report and ESG strategy. For the first time released detailed energy and climate, water management, and biodiversity, with a water recycling rate of 91% on all its mines. Company-wide the Lost Time Injury Rate was lowered from 0.32 in 2021 to 0.07 in 2022. Zero operational disruptions due to labor or community issues.
Silver Crest Metals Inc. signed “a collaboration agreement with Comisión Estatal del Agua (CEA) and the municipality of Arizpe to work on agriculture infrastructure, sewage system and water concessions for agricultural use for the local communities”.
Avino Silver & Gold Mines Ltd. currently holds “448 direct jobs at the mine, which has increased substantially since the restart of operations in 2021, which typically translates to 3 times the number of indirect jobs for services, consultants and suppliers in the surrounding communities and the Durango area”.
On the image below: Geologist Julio Carcamo in a Sonoran Desert project. Picture by Jorge Cirett.
During the 43rd week of the year (October 23rd to October 29th, 2023), 22 companies working in Mexico posted news releases. One company reported exploration on one of its properties, five companies released Q3 2023 results and one announced new production from a recently acquired mine. One company informed on the closing of a financing round and one other the sale of more than 10% of its shares by another company. Three companies released drilling results from their advanced projects, one on the doubling of processing capacity, one the results of an FS on its advanced property, one offered an update on construction of a new mine and another one presented a PEA on its advanced project. One company updated on the acquisition process of a property and four more on director’s appointments and results of their AGM’s. ON MEXICO ISSUES, The AIMMGM Convention in Acapulco, the biggest Mining event in Mexico held every two years, was cancelled after its opening, as the city received overnight the direct impact of a category five hurricane. ON EXPLORATION, In Sonora, Tocvan Ventures started the environmental permitting process at Pilar. ON MINING, Agnico Eagle Mines, Alamos Gold, MAG Silver, Fresnillo PLC and Newmont presented Q3 2023 production results. Impact Silver started production at the Plomosas mine in Chihuahua. ON FINANCING, Avino Silver informed Coeur Mining is to sell more than 10% of its stock. Regency Silver completed its financing round. ON RESOURCES AND DEVELOPMENT, Vizsla Silver, Gatos Silver and Endeavour Silver reported drilling results from the Panuco, Cerro Los Gatos and Parral properties respectively. Luca Mining is expanding the Tahuehueto plant to double production. Discovery Silver presented results from a feasibility study on its Cordero project. Endeavour Silver provided a Q3 construction update on the Terronera project. GoGold Resources presented the results of a preliminary economic assessment (PEA) on its Los Ricos South project. ON DEALS AND CORPORATE ISSUES, Defiance Silver and Chesapeake Gold announced officer’s appointments. Excellon Resources rescheduled its AGM and Fabled Silver updated on the agreement to acquire the Mecatona project from Kootenay. ON SOCIAL RESPONSIBILITY, no relevant news.
ON MEXICO ISSUES
The AIMMGM (Asociación de Ingenieros Mineros, Metalurgistas y Geólogos de México) Convention in Acapulco was cancelled after the direct hit after the inauguration of category five hurricane Otis. The city, along with the coastal touristic resorts were devastated by the strong winds. On this link you can find a personal account of the events: https://gambusinoprospector.com/2023/10/27/acapulco-aimmgm-convention-and-otis-hurricane-part-1-arrival/
ON EXPLORATION
Tocvan Ventures Corp. started the environmental permitting process of its Pilar project in Sonora. A detailed UAV LiDAR survey across Pilar and the newly acquired ground. The expansion area covers 21.7 square km, and the study is to provide high-resolution surface modelling.
ON MINING
Impact Silver Corp. announced the first production by the company at the recently acquired Plomosas mine in Chihuahua. The company did “an extensive rehabilitation and upgrade program at the site, including inside the mine, at the mill and on all associated mobile equipment and infrastructure”. The first concentrate shipment was sent to the smelter. Impact is to seek 200 tpd processing in H1/2024.
Agnico Eagle Mines Ltd. informed that during Q3 2023 “Minera de San Nicolás, which is jointly owned by the Company and Teck Resources Limited, continued to work on the feasibility study at San Nicolás in Zacatecas State, Mexico, and stakeholder engagement on the permitting process”. At Pinos Altos, in Chihuahua, 450 K tonnes were milled at 4,891 tpd, averaging 1.84 gpt Au, to produce 25,386 Oz Au at $1,581 per Oz Au and a total cash cost of $1,310 per Oz Au. At La India, in Sonora, 970 K tonnes were milled at 10,543 tpd, averaging 1.1 gpt Au, at a production cost of $1,271 per Oz Au and a total cash cost of $1,156 per Oz Au.
Alamos Gold Inc. reported financial results for the third quarter 2023. At the Mulatos district in Sonora 53,900 Oz Au were produced at mine-site cash cost $898 per Oz Au and a mine site AISC of $1,045 per Oz Au. At La Yaqui Grande open pit, 918 K tonnes of ore were mined, 5.72 M tonnes of waste moved with a waste to ore ratio of 5.0, crushing 10,300 tpd, with 948.4 K tonnes staked averaging 1.50 gpt Au, with 45,722 Oz Au staked and an average recovery rate of 84%. At the Mulatos open pit, 80.9 K tonnes of ore were mined, 130.5 K tonnes of waste moved with a waste to ore ratio of 1.61, crushing 11,800 tonnes per day, stacking 1.08 M tonnes averaging 1.55 gpt Au, to stake 53,923 Oz Au with an average recovery rate of 29%. “Production is expected to decrease in the fourth quarter reflecting the depletion of the Mulatos pit and a decrease in grades at La Yaqui Grande”.
MAG Silver Corp. reported Q3 2023 production from Juanicipio (56%/44% Fresnillo/MAG) in Zacatecas. “Ramp up of the Juanicipio plant continued to be the focus during the quarter with the plant reaching its target milling rate of 4,000 tonnes per day (“tpd”) in September”. During the period 322.2 K tonnes were processes, grading 1.32 gpt Au, 523 gpt Ag, to produce 9,444 Oz Au, 4.78 M Oz Ag.
Fresnillo Silver PLC. reported Q3 2023 production results. During the period 13.4 M OZ were produced, 0.67 M Oz from silverstream for a total of 14.1 M Oz Ag, 132,627 Oz Au, 14,575 tonnes Pb, 29,073 tonnes Zn, from the Fresnillo, Saucito, Pyrites Plant, Ciénega, San Julian Veins, San Julian DOB, Herradura, Nochebuena and Juanicipio (56%/44% Fresnillo/MAG Silver).
Newmont Corp. announced third quarter 2023 results, with some comments on its Mexico operations. At Peñasquito, in Zacatecas, operations were suspended by a strike that was resolved after the quarter’s end, therefore there was no Au, Ag, Pb, Zn production.
ON FINANCING
Avino Silver & Gold Mines Ltd. announced that Coeur Mining Inc. will offer for sale up to 14 M common shares of Avino currently held by Coeur, for gross proceeds to Coeur of approximately US$7 M. Avino will not receive any proceeds form the secondary offering (Avino, Durango).
Regency Silver Corp. completed the final tranche of a previously announced non-brokered private placement, raising an upsized total of CAD$1.75 M (Dios Padre, Sonora).
ON RESOURCES AND DEVELOPMENT
Vizsla Silver Corp. reported results from five new drill holes at its Panuco project in Sinaloa. Recent drilling intercepted the new El Molino vein, which is 250 m from the Copala resource area, and was discovered by a hole planned to condemn the area. Highlighted true width intercepts comprise 1.65 m @ 8.37 gpt Au, 1,552 gpt Ag, 0.5% Pb, 1.2% Zn; 1.10 m @ 0.62 gpt Au, 188 gpt Ag, 0.8% Pb, 2.5% Zn; 1.7 m @ 2.25 gpt Au, 1,000 gpt Ag, 0.3% Pb, 0.5% Zn; 4.15 m @ 0.96 gpt Au, 179 gpt Ag, 0.2% Pb, 4.4% Zn. “El Molino consists of alternating bands of quartz and sulfides (sphalerite, galena and acanthite), and shows similar vein textures to those observed at Napoleon and La Luisa veins”.
Gatos Silver Inc. updated on exploration at the Los Gatos district in Chihuahua. Resource definition drilling on the SE Deeps zone of the Cerro Los Gatos deposit returned good results highlighting true width intervals of 2.9 m @ 0.46 gpt Au, 550 gpt Ag, 0.30% Cu, 13.7% Pb, 24.5% Zn; 5.8 m @ 0.38 gpt Au, 44 gpt Ag, 1.13% Cu, 2.7% Pb, 2.5% Zn; 2.8 m @ 0.19 gpt Au, 140 gpt Ag, 0.47% Cu, 5.6% Pb, 17.1% Zn; 2.8 m @ 457 gpt Ag, 2.13% Cu, 2.8% Pb, 0.9% Zn; 7.6 m @ 0.58 gpt Au, 148 gpt Ag, 0.73% Cu, 1.9% Pb, 1.6% Zn; 1.22 gpt Au, 207 gpt Ag, 0.74% Cu, 10.1% Pb, 3.4% Zn. On district exploration, two holes were completed at the Santa Ana target and drilling started at Portigueño, detailed mapping and rock geochemistry were completed at the San Luis, El Valle and Lince areas and the first magneto-telluric survey was completed on an area of the Rio conchos basin, near Cerro Los Gatos.
Endeavour Silver Corp. reported drill results from last year’s (September 2022 to September 2023) drill program at its Parral project, in Chihuahua. Highlighted true width intercepts comprise 2.33 m @ 0.11 gpt Au, 508 gpt Ag, 0.4% Pb, 1.6% Zn (including 0.43 m @ 0.13 gpt Au, 1,405 gpt Ag, 0.4% Pb, 2.2% Zn); 2.50 m @ 0.28 gpt Au, 336 gpt Ag, 1.0% Pb, 2.5% Zn (including 0.29 m @ 0.40 gpt Au, 1,760 gpt Ag, 0.7% Pb, 4.0% Zn); 9.1 m @ 0.24 gpt Au, 74 gpt Ag, 0.8% Pb, 2.6% Zn); 3.89 m @ 0.30 gpt Au, 198 gpt Ag, 2.0% Pb, 7.3% Zn. Drilling has found mineralization in the Sierra Plata, El Verde and San Joaquín areas “and the extension of San Patricio vein system. All drilling was outside of the published mineral resource estimate and results are expected to grow the resource estimate”.
Luca Mining Corp. announced the expansion project to double throughput at its Tahuehueto mine in Durango is progressing according to plan. “The objective is to achieve an installed capacity of 1,000 tpd by year-end and announce commercial production in first quarter of 2024”. A second ball mill is now on site, and once commissioned the milling capacity will be of 1,250 tpd, while the flotation and concentrate filtration circuits already installed can handle 1,000 tpd. A second 500 tpd tailings filter press is soon to be transported.
Discovery Silver Corp. presented results from its feasibility study (FS) metallurgical test program from its Cordero project in Chihuahua. Highlights from the report include: Increase Ag recoveries of up to 7% to the precious metals concentrate, significant reduction in reagent consumption, excellent metallurgical performance for oxide-sulfide blending of up to 15% oxides, “Primary grind sensitivity confirmed a coarse grind size of 200 micron passing p80 is the optimal grind size” and the need of a smaller primary crusher.
Endeavour Silver Corp. provided a Q3 construction update for its Terronera project in Jalisco. Overall construction progress is 38% complete with more than $95 M spent to date. “The project remains on track and on budget for initial production in Q4 2024”. Total engineering progress is 97% complete, site road access is now established, all permanent camp dormitory units to accommodate 550 personnel have been installed. Mine development is to advance on four fronts (Portal 1 to 4), “Concrete work and rebar installation continued in the SAG and ball mill grinding, coarse ore stockpile and flotation areas, and concrete work began for the primary crusher” and most long-lead major equipment is to be received before year’s end.
GoGold Resources Inc. filed a NI 43-101 compliant preliminary economic assessment (PEA) for its Los Ricos South project in Jalisco. The base case scenario envisages US$23.75 per Oz Ag, US$1,850 per Oz Au, an after-tax net present value (NPV 5%) of US$458 M, with an after tax IRR of 37%, an 11-year mine life to produce 47 M Oz Ag, 493 K Oz Au (or 88 M Oz AgEq). An initial capital cost of $148 M and sustaining costs of $72 M over the mine life. The average LOM production cash cost is $8.15 per Oz Ag and an AISC of $9.02 per Oz Ag, to produce 8 M Oz AgEq per year with half of the production from long hole underground mining and half from open pit mining.
ON DEALS AND CORPORATE ISSUES
Defiance Silver Corp. announced the appointment of George Cavey to its board of directors, replacing Dunham L. Craig (Zacatecas project, Zacatecas).
Chesapeake Gold Corp. announced the appointment of Jean-Paul Tsotsos as interim Chief Executive Officer (Metates, Durango).
Excellon Resources Inc. rescheduled its annual and special meeting to November 23, 2023 (Evolución, Durango).
Fabled Silver Gold Corp. updated on the agreement with Kootenay Silver Inc. to acquire the Mecatona project, in Chihuahua. “The Company is still attempting to secure the funding required in order to complete the Proposed Transaction. The Company will provide a further update on the closing of the Proposed Transaction in due course”. The company received a six-month extension by the British Columbia Register of Companies and the Exchange.
Orogen Royalties Inc. re-elected all of its directors on the annual general meeting (Ermitaño, Sonora).
ON SOCIAL RESPONSIBILITY
No relevant news.
On the image below: Bleached and goethite-stained rocks in the Sonoran Desert. Picture by Jorge Cirett.
During the 41st week of the year (October 9th to October 15th, 2023), 19 companies working in Mexico posted news releases. One company reported exploration on one of its properties, while six companies released Q3 2023 results. Five companies informed on the opening or closing of private placements, on credit facilities and share-for-debt transactions. One company announced an updated mineral resource estimate on a property. Two companies updated on director’s appointments and AGM’s results. ON MEXICO ISSUES, Pan American Silver re-commenced operations at La Colorada mine in Zacatecas, after suffering the theft of two concentrate trucks on the first week of October. ON EXPLORATION, In Sonora, Colibri Resources completed a drilling campaign on the “EP” project. ON MINING, Aura Minerals, Gatos Silver, SilverCrest Metals, Endeavour Silver, Torex Gold and First Majestic Silver presented Q3 2023 production results. ON FINANCING, Endeavour Silver executed the credit agreement for up to $120 M for the construction of the Terronera mine in Jalisco. Fortuna Silver announced the repayment of $40 M. Bear Creek Mining announced BMO Capital Markets is not to exercise the over-allotment option on the last financing round. Guanajuato Silver Company completed a C$937 K shares-for-debt transaction. Sierra Metals closed a $16.38 M non-brokered private placement. ON RESOURCES AND DEVELOPMENT, Kootenay Silver announced an updated mineral resource estimate for its Promontorio-La Negra deposit in Sonora. ON DEALS AND CORPORATE ISSUES, Luca Mining and Starcore International Mines announced directors’ appointments and Starcore its annual general meeting results. ON SOCIAL RESPONSIBILITY, no relevant news.
ON MEXICO ISSUES
Pan American Silver Corp. announced the commencement of operations at La Colorada mine in Zacatecas on October 16, 2023. Activities were suspended on October 5, 2023, due to security concerns following the armed robbery (no injuries, no casualties) of two concentrate trucks from the operation.
ON EXPLORATION
Colibri Resource Corp. reported the completion of its phase 3 drilling campaign at selected targets on its 4,766 ha “EP project” in Sonora, with 2,000 m in 17 holes. Areas targeted include West El Sahuaro, an area north of the Main Zone and an area south of the Main Zone. Previous drilling on the El Sahuaro zone has returned up to 15 m @ 2.36 gpt Au, 22 m @ 0.17 gpt Au; 6 m @ 0.626 gpt Au, and 87 m @ 0.13 gpt Au; 86 m @ 0.17 gpt Au (including 10 m @ 0.55 gpt Au); 34.7 m @ 0.28 gpt Au (including 5.65 m @ 1.0 gpt Au); 29 m @ 0.47 gpt Au in the Main Zone.
ON MINING
Aura Minerals Inc. announced Q3 2023 preliminary results, including figures from its Mexican operations. At Aranzazu, in Zacatecas, 27,933 Oz AuEq were produced, an 11% increase on the previous month.
Gatos Silver Inc. announced production results for the third quarter 2023. At Cerro Los Gatos, in Chihuahua, 268.3 K tonnes were milled at a daily rate (tpd) of 2,916 tonnes, grading 285 gpt Ag, 3.82% Zn, 1.84% Pb, 0.30 gpt Au, recovering 90.3% Ag, 61.1% Zn, 87.4% Pb, 49.2% Au, to produce 2.22 M Oz Ag, 13.8 M Lb Zn, 9.5 M Lb, Pb, 1,280 Oz Au.
SilverCrest Metals Inc. provided results for the third quarter 2023 from its Las Chispas mine in Sonora. During the period 83.8 K tonnes were mined, and 114.5 K tonnes milled, at a daily rate of 1,245 tonnes (tpd), averaging 4.35 gpt Au, 413 gpt Ag, recovering 98.3% Au, 98.1% Ag, to produce 15,700 Oz Au, 1.49 M Oz Ag (or 2.74 M Oz AgEq).
Endeavour Silver Corp. reported third quarter 2023 consolidated production of 1.15 M Oz Ag, 9,089 Oz Au (or 1.9 M Oz AgEq). At Guanaceví, in Durango, 103.3 K tonnes were processed at 1,123 tpd, grading 341 gpt Ag, 1.03 gpt Au, with recoveries of 91.9% Ag, 92.4% Au, to recover 1.04 M Oz Ag, 3,161 Oz Au. At Bolañitos, in Guanajuato, 110.9 K tonnes were processed at 1,206 tpd, grading 37 gpt Ag, 1.89 gpt Au, with recoveries of 82.6% Ag, 87.9% Au, to recover 107.5 K Oz Ag, 5,928 Oz Au. At Guanaceví production was below plan due to a reduction in metal grades and a scheduled maintenance shutdown. At Bolañitos performance remained strong.
Torex Gold Resources Inc. reported Q3 2023 production from its El Limón Guajes operation in Guerrero. Durning the period 11,153 tonnes per day were mined from the open pit, with 110 K tonnes of waste moved, and 2,321 tonnes mined from underground, with a total of 13,107 tpd processed averaging 2.47 gpt Au, recovering 88.7% Au to produce 85,360 Oz Au. Torex remains on track to reach the annual production guidance of 440,000 to 470,000 Oz Au.
First Majestic Silver Corp. announced production results for the third quarter 2023 from its three operating mines in Mexico. At San Dimas, in Durango, 213.7 K tonnes were processed at a rate of 2,323 tpd, averaging 237 gpt Ag, 2.71 gpt Au, recovering 95% Ag, 96% Au to produce 1.55 M Oz Ag, 17,863 Oz Au. At Santa Elena, in Sonora, 226.3 K tonnes were processed at a rate of 2,460 tpd, averaging 75 gpt Ag, 4.09 gpt Au, recovering 64% Ag, 95% Au to produce 347.9 K Oz Ag, 28,367 Oz Au. At La Encantada, in Coahuila, 230.2 K tonnes were processed at a rate of 2,503 tpd, averaging 109 gpt Ag, 0.01 gpt Au, recovering 70% Ag, 90% Au to produce 565.7 K Oz Ag, 94 Oz Au. Total consolidated production for the quarter in Mexico was 2,461.9 K Oz Ag, 46,324 Oz Au, or 6.25 M Oz AgEq. Throughout the period twelve rigs were active at San Dimas and four at Santa Elena.
ON FINANCING
Endeavour Silver Corp. executed the credit agreement for a senior secured debt facility for up to $120 M with ING Capital LLC and ING BANK N.V. for the underground mine and mill at Terronera, in Jalisco. The term of the facility is 8.5 years, including a 2-year grace period during the construction phase, an annual rate of US secured overnight financing rate + 4.50% prior to completion and + 3.75% upon completion. Endeavour is required to enter into a hedging program for 68 K Oz Au over the initial two operating years prior to initial drawdown, while no hedging is required on silver production.
Fortuna Silver Mines Inc. reported the payment of $40 M of its revolving credit facility at the end of Q3 2023, using cash on hand. After the payment the estimated total net debt is $133 M (San José, Oaxaca).
Bear Creek Mining Corp. announced that BMO Capital Markets, as underwriter to the previously announced C$9.5 M bought deal financing that closed on October 5, 2023, has notified the company that it has elected not to exercise the over-allotment option related to the Offering (Mercedes, Sonora).
Guanajuato Silver Company Ltd. announced the completion of its previously announced shares-for-debt transaction totaling C$937 K through the issuance of common shares, including shares issued to one non-arms-length party to settle an indebtedness of C$150 K (El Cubo, Guanajuato).
Sierra Metals closed a non-brokered private placement for aggregate gross proceeds of $16.38 M (Bolivar, Chihuahua).
ON RESOURCES AND DEVELOPMENT
Kootenay Silver Inc. announced an updated mineral resource estimate at the Promontorio-La Negra project in Sonora. “The resource estimate is an update of the Promontorio deposit and a maiden mineral resource estimate for the La Negra deposit 7km to the north. The two deposits are part of the Promontorio Mineral Belt and are considered a single project”. Using the base-case scenario with a 25 gpt AgEq cutoff Promontorio has 42.1 M tonnes @ 34.54 gpt Ag, 0.43 gpt Au, 0.49% Pb, 0.57% Zn, containing 46.8 M Oz Ag, 575 K Oz Au, 454.7 M Lb Pb, 527.6 M Lb Zn (or 140.8 M Oz AgEq) in measured and indicated resources and 14.6 M tonnes @ 27.89 gpt Ag, 0.35 gpt Au, 0.42% Pb, 0.45% Zn, containing 13.1 M Oz Ag, 163 K Oz Au, 136.2 M Lb Pb, 143.6 M Lb Zn (or 39.8 M Oz AgEq) in inferred resources. At La Negra the base case scenario assumes a grade of 40 gpt AgEq, with 5.3 M tonnes @ 126.3 gpt Ag, 0.067 gpt Au, containing 22.0 M Oz Ag, 21,450 Oz Au in indicated resources and 1.26 M @ 112.2 gpt Ag, 0.060 gpt Au, containing 4.6 M Oz Ag, 4,540 Oz Au.
ON DEALS AND CORPORATE ISSUES
Luca Mining Corp. announced the appointment of Chris Richings as vice-president technical (Campo Morado, Guerrero).
Starcore International Mines Ltd. reported the results of its annual general meeting held on October 12, 2023. All directors were re-elected and approved the appointment of an auditor firm (San Martin, Queretaro).
ON SOCIAL RESPONSIBILITY
No relevant news.
On the image below Silicified vein ridges under the sun and shade in the Sonoran Desert. Picture by Jorge Cirett.
During the 40th week of the year (October 02nd to October 08th, 2023), at least 20 press releases were announced by companies working in Mexico, and 6 news published by the media, with nine commenting on Mexican issues, five disclosing deals and corporate issues, four reporting resources and developments of their properties, four informing on exploration results, two announcing financing issues, and two reporting production results. ON MEXICO ISSUES, Pan American suspended temporarily operations at its Colorada Mine in Zacatecas due to security concern. Grupo México declared that the Sonora River was successfully remedied, while the Ministry of the Environment and Natural Resources (SEMARNAT) presented a document stating that the presence of contaminating elements persists in the Sonora River basin after the Grupo Mexico spill in August 2014. President Andrés Manuel López Obrador said on Wednesday, October 4, 2023, that in about 15 days he hopes to have a proposal for action on the notorious case of a chemical spill from a mine owned by the giant Grupo México into a river in the north of the country in 2014. Mine Workers Union of Peñasquito Mine in Zacatecas, the Mexico´s largest gold mine, accepted operator Newmont Corp´s proposal to end a 4 month stop on Thursday night, October 5, 2023. Gold and silver mining companies listed in the United States and Canada stock markets suffered the decline in precious metals in the international market, due to the strength of the dollar, among other reasons. Chesapeake and Defiance Silver reported the best drilling intercepts in Mexico on the first week of October, 2023. ON EXPLORATION, In Coahuila, Monumental reported final results of its maiden drilling program at its Jemi heavy rare earth element project. In Sinaloa, Chesapeake reported a new gold discovery at its Lucy project. In Zacatecas, Radius provided an update of its drilling program at its Tropico project. In Oaxaca, Vortex excavated manually six trenches, totalling 188m and collected 117 samples at its Riqueza Minera project. ON MINING, Fortuna reported Q3, 2023 production results from its San Jose Mine, Oaxaca. Guanajuato Silver provided an operations update of their four silver producing mines (El Cubo, Valenciana, and San Ignacio Mines in Guanajuato, and Topia Mine in Durango). ON FINANCING, Excellon completed the extension of the maturity date of its 5.75% secured convertible debentures from July 30, 2023 to July 31, 2024 (La Negra Mine, Queretaro). Bear Creek closed its previously announced bought deal financing for gross proceeds of CAD $9.5M (Mercedes Mine, Sonora). ON RESOURCES AND DEVELOPMENT, Defiance announced that new sampling of historical drill holes has identified high grade mineralization in wide widths in previously unrecognized zones at the San Acacio project area in Zacatecas. Heliostar reported 80.4% average gold recovery from seven composites representative of the High Grade Panel at its Ana Paula project in Guerrero. Minera Alamos reported maiden Mineral Resource Estimate for its Santana project, Sonora. Tocvan identified several target areas through its due diligence field work completes at its Pilar project in Sonora. ON DEALS AND CORPORATE ISSUES, Impact Silver announced that its shares are now trading in the USA on the OTCQB market (Zacualpan project, State of Mexico). Sierra Madre reported that its common shares are now eligible for electronic clearing and settlement through the Depository Trust Company (DTC) in the United States (La Guitarra Mine, State of Mexico). Goldgroup announced the appointment of its new CEO (Cerro Prieto Mine, Sonora). Orex signed a non-binding letter of intent to acquire 100% of the Valenciana property in Zacatecas. Radius completed the issuance of 500K common shares to Bruce Smith (Tropico project, Zacatecas). ON SOCIAL RESPONSIBILITY, No relevant news.
ON MEXICO ISSUE
Pan American Silver Corp., suspended temporarily operations at its Colorada Mine in Zacatecas due to security concern. The company experienced an armed robbery of two trailers of concentrate. Fortunately, there were no physical injuries to the personnel. Pan American decided to suspend operations, project work, and exploration at La Colorada to protect the safety and security of the personnel.
Grupo México S.A.B. de C.V., declared that the Sonora River was successfully remedied, while the Ministry of the Environment and Natural Resources (SEMARNAT) presented a document stating that the presence of contaminating elements persists in the Sonora River basin after the Grupo Mexico spill in August 2014. In a statement, Grupo México pointed out that “The supposed findings of the sampling presented last week lack any causal link with the event that occurred in 2014. They fail to point out other current sources of contamination such as illegal mining, the discharge of untreated blackberries and the prolonged accumulation of residues of agricultural fertilizers and insecticides. The results released in recent days contradict those that CONAGUA and COFEPRIS have made public over time, which are supported by laboratories accredited by the Mexican Accreditation Entity (EMA) and endorsed by various institutions.” Grupo México argues that for five years after the accident, water monitoring was carried out in 35 sampling stations and 33 wells, in addition to bio-monitoring that included analyzes of exposure to metals, plant toxicity, genetics in invertebrates and flora. The document presented by the mining company states that “scientific evidence supports that the remediation of the Sonora River is recognized as successful and fully in accordance with the law,” and that the Sonora River region has been affected by continuous disinformation campaigns, arising with Political purposes.
President Andrés Manuel López Obradorsaid on Wednesday, October 4, 2023, that in about 15 days he hopes to have a proposal for action on the notorious case of a chemical spill from a mine owned by the giant Grupo México into a river in the north of the country in 2014. Last week, the environmental authority presented an opinion in which it concluded that the firm’s remediation efforts had not been sufficient and that the Sonora River continued to show the presence of contaminants nine years after the incident. On Wednesday, however, tycoon Germán Larrea’s company said the remediation was “successful.” At the time, the company was fined and had to create a trust to repair the damages. The president added that it seemed that the resources had not only been insufficient but also that their use had not been transparent.
Mine Workers Union of Peñasquito Mine in Zacatecas, the Mexico´s largest gold mine, accepted operator Newmont Corp´s proposal to end a 4 month stop on Thursday night, October 5, 2023. Mine Workers Union stated in a statement that as part of the agreement, workers at the Peñasquito mine will receive 8% more pay for each shift, and the increase will be retroactive to August 1, 2023. Each of the around 2,000 unionized workers will also receive an equal share of a total of MXN $152M (USD $8.3 M). The dispute over profit sharing related to 2022 will be decided by Mexico’s tax agency, while workers will receive 10% of profits for 2023 as long as the company makes a net profit in its income, according to the statement.
Gold and silver mining companies listed in the United States and Canada stock markets suffered the decline in precious metals in the international market, due to the strength of the dollar, among other reasons. The shares of the Mexican mining company Industrias Peñoles fell almost 5% this Monday, losing MXP $3,975M in capitalization on the Mexican Stock Exchange (BMV). In fact, the session hit a one-year low. Peñoles shares fell 4.87%, to MXP $195.45 each, making it the second station that lost the most in the session on the BMV. Its Fresnillo subsidiary listed on the London Stock Exchange lost 2.94%, to 5.35 pounds per share. Earlier in the day, Peñoles’ stock on the BMV reached a minimum of MXP $190.40, its lowest level since September 30, 2022. The American companies Newmont and Royal Gold fell 3.82 and 3.25%, in that order, on Wall Street, while the Canadian companies Wheaton Precious Metals and Pan American Silver fell 3.92 and 5.25%, respectively, on the Toronto Stock Exchange. In Mexico, the other three mining companies listed on the Stock Exchange (Grupo México, Compañía Minera Autlán and Frisco) did not present losses in their shares, because their income depends to a lesser extent on precious metals.
Chesapeake Gold Corp., and Defiance Silver Corp., reported the best drilling intercepts in Mexico on the first week of October, 2023. Details are shown in the table below:
ON EXPLORATION Monumental Minerals Corp., reported final results of its maiden drilling program at its Jemi heavy rare earth element (REE) project in Coahuila, which commenced on the Veladora North and South prospect areas. “Of the 2000 m drilled, 186 m of core (124 samples) returned anomalous REE concentrations. These samples contained total rare earth oxides (TREO1) results greater than 500 parts per million (ppm), with a maximum of 2018 ppm, and a mean and standard deviation of 717 and 282 ppm (respectively). Heavy rare earth oxides (HREO2) are also highest in these samples with a maximum of 517 ppm, and a mean and standard deviation of 164 ppm and 98 ppm (respectively). Anomalous TREO1 and HREO2 values were observed in every drill hole except JV-23-08 and JV-23-10”. Table below shows La Veladora significant assay results:
Chesapeake Gold Corp., reported a new gold discovery at its Lucy project, Sinaloa. The company completed 14 holes in the 2023 campaign for a total of approximately 1,710 m drilled. Drilling highlights include hole LU23-06 with 6.11 g/t Au over 24m; hole LU23-09 with 2.57 g/t Au over 30m, including 3.12 g/t Au over 24m; hole LU23-10 with 1.95 g/t Au over 21m, including 3.3 g/t Au over 9m; and hole LU23-13 with 3.95 g/t Au over 24m, including 5.44 g/t Au over 12m.
Radius Gold Inc., provided an update of its drilling program at its Tropico project, Zacatecas. As previously reported, hole TDD-001 planned for 300m to intercept Tropico target, encountered difficult ground conditions at 56m in a large brecciated fault zone. “This hole intercepted from 19m to 56m, intense altered clay, silicification, variable zones of hydrothermal breccia and sets of stockwork veinlets with banded silica veins. Assay results from 18 samples returned 29m at 0.34 g/t gold from 24m downhole with the final sample returning 0.6 g/t Au. Diamond drill hole TDD-002 was collared 25m west of TDD-001 and drilled at -55° directly under TDD- 001 using larger diameter PQ core. The hole is still in progress. Below 25m of soil cover the hole intersected a 45m zone of epithermal alteration (similar to TDD-001) with clay, variable silicification, brecciation and zones of veinlets with occasional banded vein textures”. “Diamond drill hole TDD-003 was collared on the west of the Tropico breccia and drilled east at -65° to scissor holes 1 and 2 at depth. TDD-003 was collared in silicified crackle breccia and has to date intersected 80m of variably clay altered, silicified, and brecciated sediment. Significantly at 69m depth the hole intersected a 13m zone of white banded massive epithermal veining and breccia. The hole is still in progress”.
Vortex Metals Inc., reported that it is focused on the Rhyolite Dome area at its Riqueza Minera project in Oaxaca, and has moved westward toward the copper-bearing gossans of the Laminas zone, which may represent a Cu-rich stringer zone in the footwall of a VMS deposit. The company has excavated manually six trenches, totalling 188m, in which has identified broad exposures of iron- and manganese-rich exhalite horizons, silicified rhyolite flows and altered metasediments. Vortex has collected 117 samples and sampling results are anticipated to arrive in October.
ON MINING
Fortuna Silver Mines Inc., reported Q3, 2023 production results from its San Jose Mine in Oaxaca. The company milled 247,542 tonnes of 189 g/t Ag and 1.14 g/t Au with metallurgical recoveries of 91.31% and 90.71% respectively, to produce 8,205 Oz Au and 1.37M Oz Ag. The San Jose Mine plans to deliver annual silver production within the guidance range of between 5.3 to 5.8M Oz Ag.
Guanajuato Silver Company Ltd., provided an operations update of their four silver producing mines: El Cubo, Valenciana, and San Ignacio Mines in Guanajuato, and Topia Mine in Durango. “Since commercial restart at Valenciana Mine Complex in January 2023, steady production improvements, aided by the refurbishment of both the Cata shaft and a new underground locomotive system, have enabled the company to achieve production at the Cata Mill averaging over 20,000 tonnes per month from material sourced from Valenciana and San Ignacio”. “El Cubo operation is now milling at the rate of approximately 22,000 tonnes per month; this rate represents approximately half of the total capacity at the mill”. “The Company, in conjunction with the Secretaría Del Trabajo (the Federal Ministry of Labour), have been working to improve safety and security conditions at the mine in response to the unfortunate fatality that occurred in August 2023”. “The mineralized systems currently being mined at Topia are extraordinarily high grade yet are associated with higher extraction costs because of the narrow nature of the vein structures. With the goal of improving profitability at Topia, the Company intends to dramatically transform its operations through the exclusive use of local mine contactors”. The Company now anticipates that full year AgEq 2023 production will range from 3.4M to 3.6M Oz.
ON FINANCING
Excellon Resources Inc., completed the extension of the maturity date of its 5.75% secured convertible debentures from July 30, 2023 to July 31, 2024. In consideration for the extension, the company has issued 6,888,458 common shares of the company priced at CAD $0.156 per common share to the holders of the debentures in satisfaction of an extension fee in an amount equal to 6% of the aggregate principal amount of the debentures at the time of announcement (La Negra Mine, Queretaro).
Bear Creek Mining Corporation closed its previously announced bought deal financing. The company issued a total of 27.2M units at a price of CAD $0.35 per unit for gross proceeds of CAD $9.5M. Each unit is comprised of one common share of the company and one common share purchase warrant of the company. Each warrant will be exercisable to acquire one common share at an exercise price of CAD $0.42 per warrant share until October 5, 2028. Net proceeds will be used to support additional development work at its Mercedes Mine in Sonora, to expand on recent positive underground drill results, and for general working capital purposes, including CADS $3M intended to be used to reduce Mercedes ´trade payables to a normalized level over the next two quarters.
ON RESOURCES AND DEVELOPMENT
Defiance Silver Corp., announced that new sampling of historical drill holes has identified high grade mineralization in wide widths in previously unrecognized zones at the San Acacio project area in Zacatecas. Significant drill intercepts were encountered in holes SAD-15-05 with 98 g/t Ag, 0.1 g/t Au, 0.01% Pb, and 0.03% Zn (107 g/t AgEq) over 1m, plus 91 g/t Ag, 0.15 g/t Au, 0.08% Pb, and 0.3% Zn (114 g/t AgEq) over 4.65m, including 308 g/t Ag, 0.06 g/t Au, 0.05% Pb, and 0.2% Zn (319 g/t AgEq) over 0.85m, plus 153 g/t Ag, 0.02 g/t Au, 0.05% Pb, and 0.1% Zn (161 g/t AgEq) over 2.72m; hole SAD-15-07 with 235 g/t Ag, 0.3 g/t Au, 0.07% Pb, and 0.16% Zn (267 g/t AgEq) over 1.12m, 89 g/t Ag, 0.16 g/t Au, 0.13% Pb, and 0.51% Zn (123 g/t AgEq) over 3.77m, including 283 g/t Ag, 0.26 g/t Au, 0.12% Pb, and 0.52% Zn (324 g/t AgEq) over 0.84m; hole SAD-17-14 with 129 g/t Ag, 0.25 g/t Au, 0.06% Pb, and 0.18% Zn (157 g/t AgEq) over 6.83m, including 319 g/t Ag, 0.59 g/t Au, 0.08% Pb, and 0.22% Zn (376 g/t AgEq) over 2.3m, including 1,180 g/t Ag, 2.23 g/t Au, 0.07% Pb, and 0.18% Zn (1,369 g/t AgEq) over 0.35m; hole SAD-17-15 with 155 g/t Ag, 0.02g/t Au, 0.06% Pb, and 0.14% Zn (162 g/t AgEq) over 36.7m, including 200 g/t Ag, 0.02g/t Au, 0.07% Pb, and 0.19% Zn (210 g/t AgEq) over 16.85m, including 279 g/t Ag, 0.03 g/t Au, 0.12% Pb, and 0.32% Zn (296 g/t AgEq) over 6.81m, including 595 g/t Ag, 0.07g/t Au, 0.27% Pb, and 0.65% Zn (629 g/t AgEq) over 2.82m; including 854 g/t Ag, 0.06g/t Au, 0.28% Pb, and 0.27% Zn (876 g/t AgEq) over 1.38m, including 285 g/t Ag, 0.02g/t Au, 0.05% Pb, and 0.17% Zn (294 g/t AgEq) over 3.18m, including 138 g/t Ag, 0.02g/t Au, 0.07% Pb, and 0.11% Zn (145 g/t AgEq) over 15m, including 228 g/t Ag, 0.03g/t Au, 0.14% Pb, and 0.19% Zn (241 g/t AgEq) over 6.59m, including 435 g/t Ag, 0.06g/t Au, 0.28% Pb, and 0.37% Zn (460 g/t AgEq) over 3m; and hole SAD-17-16 with 192 g/t Ag, 0.1g/t Au, 0.02% Pb, and 0.05% Zn (202 g/t AgEq) over 2.31m, including 810 g/t Ag, 0.44 g/t Au, 0.07% Pb, and 0.1% Zn (851 g/t AgEq) over 0.35m.
Heliostar Metals Ltd., reported 80.4% average gold recovery from seven composites representative of the High Grade Panel at its Ana Paula project in Guerrero. Metallurgical process is based on a conventional 75 micron grind size and Carbon-in-Leach (CIL) flowsheet. Highlights of the metallurgical testwork include that gold recoveries range from 74.6 – 88.1% for these samples; gravity testwork suggests that greater than 31% of the gold may be gravity recoverable; and it confirms the company’s interpretation that recoveries from high-grade gold mineralization can utilize simpler, lower cost, conventional milling processes.
Minera Alamos Inc., reported maiden Mineral Resource Estimate (MRE) for its Santana project, Sonora. The table below shows the MRE by zone for the Santana project:
Tocvan Ventures Corp., identified several high priority target areas with historic workings and silicified breccias through its due diligence field work completes at its Pilar project in Sonora. Surface samples collected during due diligence of the area have been sent to the lab and assays are pending.
ON DEALS AND CORPORATE ISSUES
Impact Silver Corp., announced that its shares are now trading in the USA on the OTCQB market under the symbol “ISVLF”. The Company’s shares also continue to trade in Canada on the TSX Venture Exchange under the symbol “IPT” (Zacualpan project, State of Mexico).
Sierra Madre Gold and Silver Ltd., reported that its common shares are now eligible for electronic clearing and settlement through the Depository Trust Company (DTC) in the United States. Sierra Madre’s shares started trading on the OTCQX® Best Market this summer (La Guitarra Mine, State of Mexico).
Goldgroup Mining Inc., announced the appointment of its new CEO, effective October 1, 2023. The previous Interim CEO, will continue as the Company’s Chief Financial Officer. (Cerro Prieto Mine, Sonora).
Orex Minerals Inc., signed a non-binding letter of intent (LOI) with Exploraciones El Cairo S.R.L. de C.V., to acquire 100% of the Valenciana property in Zacatecas. Since the LOI is non-binding, the negotiation of a definitive agreement is underway at this time, and such definitive agreement is expected to include a four months due diligence period, scaled option payments, and an area of influence and a 2% NSR on the original concessions, plus a 0.5% NSR on adjacent properties obtained from third party concession holders within the area of influence. “The Valenciana Property hosts high-grade epithermal gold and silver veins, with base metals of lead and zinc, in Cretaceous sedimentary units and Tertiary rhyolitic and monzonitic intrusive rocks. It is located on the Mesa Central within the prolific “Silver Trend” of Mexico”.
Radius Gold Inc., completed the issuance of 500K common shares at a deemed price of $0.24 per share, for a total deemed value of $120K to Bruce Smith, in part for his ongoing leadership as the Company’s President and Chief Executive Officer (Tropico project, Zacatecas).
ON SOCIAL RESPONSIBILITY
No relevant news.
Content like what you have just read can be seen at https://gambusinoprospector.com/ and at LinkedIn’s Mexico Mineral Exploration Group.
On the picture above, diatreme breccia related to a flow banded rhyolite dome in a locality in Durango, Mexico. Photo by Miguel A Heredia.
During the 39th week of the year (September 25th to October 1st, 2023), only 11 companies working in Mexico posted news releases (the weekly low record is nine, since 2015). One company reported exploration on one of its properties, while no news on mining were released. Five companies informed on the opening or closing of private placements, their assistance to investor conferences and/or the amendment of credit facilities. One company presented drilling results from one of its properties and one other an updated mineral resource estimation on one of its mines. The government cancelled nine mining concessions to one company in Sonora. One company updated on results of its annual general meeting and one other informed on modifications to streaming amendments. ON MEXICO ISSUES, the federal government is playing all tricks available on its hat to get the Sonora Lithium deposit under its control, expropriating mining concessions without calling it an expropriation, of what they see as a project with a potential large income revenue and a stepping stone on resources sovereignty. Camimex regards the cancellation infeasible while pointing that exploration expenditure has fallen 40% in recent years. A Labor Panel has been installed under T-MEC to review the US claim against Grupo Mexico in one of its mining units. ON EXPLORATION, In Chihuahua, Kootenay Silver informed four drill holes have been completed at Columba. ON MINING, no relevant news. ON FINANCING, Aztec Minerals closed the final tranche of a private placement for C$639 K, GR Silver was granted an extension for its financing placement, Regency Silver completed the first tranche of an upsized private placement. ON RESOURCES AND DEVELOPMENT, Heliostar Metals reported drilling results from Ana Paula, in Guerrero. Guanajuato Silver presented an updated resource estimate for San Ignacio, in Guanajuato. ON DEALS AND CORPORATE ISSUES, the Mexican government cancelled nine mining concessions to Ganfeng’s Lithium in Sonora, in an unscrupulous bid to get its hands on the only defined lithium resource in Mexico. Southern Silver provided an update on results from its AGM. Bear Creek Mining presented two press releases to inform on changes on the two streaming agreements on the Mercedes mine production in Sonora. ON SOCIAL RESPONSIBILITY, no relevant news.
ON MEXICO ISSUES
Camimex (Cámara Minera de México) regards the cancellation of Ganfenfg Lithium’s concessions in Sonora as not viable. Ganfeng was served in August with the cancellation notice by the government on grounds of lack of investment, which the company denies. The exploration expenditure in México has fallen close to 40% in the last seven years.
Ganfeng’s Lithium cancelation of claims in Sonora by the federal government will have to be dealt with in national courts, as Mexico and China do not count with a trade agreement.
Marath Bolaños, head of the Secretaría del Trabajo y Previsión Social (Labor Bureau) stated that the Labor Panel under the T-MEC has been formed, to review the controversy between the US government and Grupo Mexico’s San Martín mine in Zacatecas.
The president of Mexico indicated that its government is reviewing lithium mining concessions.
ON EXPLORATION
Kootenay Silver Inc. updated on drilling progress of their program at Columba, in Chihuahua. Four diamond holes have been completed of the expected 12-15 holes in the 3,000 m program. “Analyses are awaited, however visual confirmation of mineralization and veining typical of D-Vein has been reported by the logging geologists in the holes to date where modeling predicted. Veining and associated stockwork mineralization in drilled length in each hole was observed to measure approximately 5.0 m vein/ stockwork, 8.2 m vein and 23 m stockwork, 10 m vein and 26 m stockwork and 1.0 m vein, 3.0 m stockwork in holes CDH-23-136 through CDH-23-139 respectively”.
ON MINING
No Relevant News.
ON FINANCING
Aztec Minerals Corp. closed the second and final tranche of its non-brokered private placement for gross proceeds of CAD$639.1 K. Aggregate gross proceeds from both tranches are CAD$1.55 M. Alamos Gold Inc. participated in the financing with $140.6 K (Cervantes, Sonora).
Capstone Copper Corp. amended its existing revolving credit facility to increase the aggregate commitments from $600 M to $700 M “and extend the maturity from May 2026 to September 2027. The Amended Credit Facility will bear interest on a sliding scale of adjusted term SOFR plus a margin of 2.000% to 2.875%”. Capstone cash and cash equivalents position by the end of June 2023 was $520 M (Cozamin, Zacatecas).
GR Silver Mining Ltd. was granted an extension by the TSX Venture Exchange to complete its non-brokered private placement for gross proceeds of up to $1 M. A first tranche of $329 K in gross proceeds was closed on August 10, 2023 (Plomosas, Sinaloa).
Regency Silver Corp. completed the first tranche of a previously announced private placement, which has been upsized to C$1.75 M from C$1.5 M (Dios Padre, Sonora).
Vortex Metals Inc. will be participating in the 23rd Investment Conference organized by CM-Equity AG in Munich (Riqueza Marina, Oaxaca).
ON RESOURCES AND DEVELOPMENT
Heliostar Metals Ltd. reported drilling results from the Ana Paula project in Guerrero. These two infill holes are within the “High Grade Panel” at the deposit, and are the last that are to be included in the resource update planned for November 2023. Highlighted core length intercepts comprise 35.9 m @ 8.17 gpt Au (including (11.8 m @ 13.55 gpt Au); 83.6 m @ 8.57 gpt Au (including 63.0 m @ 10.41 gpt Au, which includes 12.0 m @ 18.36 gpt Au); 57.0 m @ 6.03 gpt Au (including 5.0 m @ 45.44 gpt Au); 14.6 m @ 32.98 gpt Au (or 18.60 gpt Au if assays cut to 100 gpt Au).
Guanajuato Silver Company Ltd. presented a new mineral resource estimate for its San Ignacio mine in Guanajuato. Measured and indicated resources comprise 790 K tonnes @ 123 gpt Ag, 2.10 gpt Au, containing 3.14 M Oz Ag, 53,000 Oz Au, and inferred resources of 2.17 M tonnes @ 127 gpt Ag, 2.27 gpt Au, containing 8.9 M Oz Ag, 158,000 Oz Au. “… an increase of 130% in the measured & indicated category and 283% in the inferred category.”
ON DEALS AND CORPORATE ISSUES
The Mexican government, through the Direccion General de Minas (DGM) cancelled nine mining concessions in Sonora to Ganfeng Lithium, including those where the largest (and so far, the only) lithium deposit in Mexico is located. The company was informed of the cancellation last August, with the government stating that the minimum investment required between 2017 and 2021 was not fulfilled and Ganfeng declaring its compliance above that limit. The company has already filed claims against the resolution at the Economy Secretariat (Secretaría de Economía). Note by editor. – This is one more issue between private capital and the Mexican government, with a president with a world vision from the 1970’s, where the State is to have a ruling fist on all economic activities, and the president a final saying on what is to be done or not.
Southern Silver Exploration Corp. provided a corporate update from the company’s annual meeting. During the meeting seven incumbent directors were elected and the chartered accountants reappointed. Lawrence Page, Robert Macdonald and Killian Ruby were reappointed as president, vice president exploration and chief financial officer respectively. (Cerro Las Minitas, Durango).
Bear Creek Mining Corp. made the final gold delivery pursuant to a gold pre-pay streaming agreement with Nomad Royalty Co. Ltd. which was assumed upon the acquisition of the Mercedes mine, in Sonora, in April 2022. As a result, over 300 additional ounces of gold produced at Mercedes per month will now be fully available for sale by the Company. A promissory with 1368445 B.C. Ltd. was amended to extend the maturity from the end of September 2023 to the end of November 2023.
Bear Creek Mining Corp. announced a restructuring of its current stream and debt obligations with Sandstorm Gold Ltd. to improve the Mercedes mine ability to produce free cash flow near term by reducing near-term Au and Ag stream delivery obligations and the refinancing and extensions of Bear Creek’s debt with Sandstorm. Sandstorm will refinance its US$22.5 M convertible debenture into a 5-year convertible promissory note at 7% per year and convertible into Bear Creek shares at C$0.73 per share. “Sandstorm has agreed to make up to US$8 million in additional credit” prior to the end of August 2024. Bear Creek has to complete an equity financing to raise at least CAD$9.5 M.
ON SOCIAL RESPONSIBILITY
No relevant news.
On the image below: Geologist Julio Carcamo on a silicified ridge in the Sonoran Desert. Picture by Jorge Cirett.
