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.
During the 38th week of the year (September 18th to September 24th, 2023), at least 18 press releases were announced by companies working in Mexico, and 4 news published by the media, with ten disclosing deals and corporate issues, three commenting on Mexican issues, three announcing financing issues, two reporting resources and development of their properties, two informing on exploration results, and two discussing social issues. ON MEXICO ISSUES, According to El Financiero, there has been a 69% increase in the number of suspended projects during the López Obrador administration. According to information from the US Geological Survey, there are 82 lithium deposits in 18 states of the Republic, which can represent 1.7 million tons. ON EXPLORATION, In Chihuahua, Southern Empire received permitting from the Mexico´s Ministry of Environment and Natural Resources (SEMARNAT) for 30 drill hole sites at its Centauro project. In Zacatecas, Radius provided an update on drilling at its Tropico project. ON MINING, no relevant news. ON FINANCING, Equinox announced and completed a bought deal offering of convertible senior notes (Mina Los Filos, Guerrero). Excellon announced debenture restructuring to reduce the outstanding principal amount to CAD $7.5M (La Negra Mine, Queretaro). ON RESOURCES AND DEVELOPMENT, Golden Tag announced the commencement of a 7,000m drilling campaign at its La Parrilla Mine Complex in Durango. Tocvan provided an update on the acquisition of Pilar project in Sonora and outlined target areas for the next phase of drilling. Silver Valley provided a corporate update on its MexiCan lithium-potassium projects located in Zacatecas-San Luis Potosi. ON DEALS AND CORPORATE ISSUES, Luca Mining announced the appointment of its Director of Corporate Development (Tahuehueto project, Durango). Santacruz reported fatality at its Zimapan Mine, Hidalgo. GR Silver reported results from its annual general meeting of shareholders (Plomosas project, Sinaloa). Sierra Metals placed Cusi Mine in Chihuahua on care and maintenance and initiated sale process. Radius announced that it proposes to issue 500K common shares of the company to Bruce Smith (Tropico project, Zacatecas). Angel Wing announced the consolidation of its common shares (La Reyna project, Nayarit). Bear Creek announced results from its special meeting of shareholders (Mercedes Mine, Sonora). Colibri announced the retirement of its President and CEO, and its replacement (Evelyn project, Sonora). Orex announced a consolidation of its issued and outstanding common shares at a ratio of ten pre-consolidation shares to one post-consolidation share (Coneto project, Sonora). Pan American announced that it will host a conference call to discuss the company´s environmental, social, and governance efforts and development (La Colorada, Zacatecas). Silver Viper announced that it will present a live virtual corporate update hosted by Red Cloud Financial Services on September 28th, 2023 at 2:00 PM ET (La Virginia project, Sonora). ON SOCIAL RESPONSIBILITY, MAG Silver published its second annual sustainability report (Juanicipio, Zacatecas). Ternium completed the restoration of the Cerro Náhuatl Mine and Jala Station Closure Plan in Coquimatlán, Colima, which covers a period from 2012 to 2022 in which reforestation works and programs were implemented.
ON MEXICO ISSUE
According to El Financiero, the mining sector has experienced a series of obstacles set by the current administration. The number of suspended projects stood at 439 in 2018, while the current figure is 837, representing a 69% increase in the number of suspended projects during the López Obrador administration. Likewise, the Fraser Institute of Canada placed Mexico in 37th place out of 83 countries evaluated, a drop of three places compared to 2021 and 17 positions compared to 2010. The sector is worried that the USD $77.2M budget assigned to Mexican Geological Survey (SGM) for 2024 is 95.47% below the USD $1.7 B private companies invested just in exploration. “With this lack of budget for exploration, they are condemning the country and the mining sector, because mining will be halted for another six years. If the modifications to the Mining Law remain as they are, we will witness Mexico’s mining sector entering a clear decline,” said Alfredo Phillips, Vice President, Argonaut Gold, in an interview with El Financiero. In an interview with Mexico Business News (MBN), Ramón Luna, Director General of Servicios y Proyectos Mineros de Mexico (SPM), acknowledged that SGM has talented geologists and manages the most comprehensive database in Mexico. However, the public body does not match the infrastructure of a private company. “(The reform) would either force the more than 100 exploration companies in the country to work with the SGM or make the latter the only operator. This is not feasible because it lacks the necessary infrastructure,” he added. Similarly, Raúl García, President of College of Mining Engineers, Metallurgists and Geologists of Mexico (CIMMGM), said that we could see the first impacts of lacking exploration by 2025 and a drop in production within the next five years, if SGM does not maintain the current levels of exploration. According to data from the Secretariat of Economy (SE), in 1Q23, the total foreign direct Investment (FDI) in the mining sector amounted to USD $419M. In contrast, during the same period in 2013, this figure reached USD $2.036 B, reflecting a decline of 79.4%. During Enrique Peña Nieto’s initial five-year term, from 2012 to 2017, the country received mining FDI totaling USD $2.8 B and USD $1.9 B, respectively, representing a decrease of 32.1%. Meanwhile, during the first five years of López Obrador’s administration, covering the period from 2018 to 2023, FDI amounted to USD $1.9 B and USD $419M, marking a significant 78% decrease. However, it is important to note that data for 2023 is not fully available, which means that the percentages provided could vary.
According to information from the US Geological Survey, there are 82 lithium deposits in 18 states of the Republic, which can represent 1.7 million tons. A few days ago, Héctor Usla, Economist and Reporter of the El Financiero Newspaper, reported that the 2024 Expenditure Law project plans to allocate MXP $9.77M to Litio para México (LitioMx), the entity created in August 2022, for the exploration, exploitation, benefit and use of lithium found in national territory. This is an amount that allows the administrative operation of the decentralized organization, but that seems insufficient to reliably establish the total amount of probable lithium reserves and initiate exploration and production in the most promising deposits. (Note of the writer.- Are you serious?…Obviously, it would be vastly insufficient to have a budget like that reported above to carry out exploration, exploitation, etc.).
ON EXPLORATION
Southern Empire Resources Corp., received permitting from the Mexico´s Ministry of Environment and Natural Resources (SEMARNAT) for 30 drill hole sites at its Centauro project in Chihuahua. “The Centauro Gold Project exhibits significant potential to host “Carlin-style” and/or epithermal precious metal mineralization based on extensive brecciation, silicification and argillization of the Tertiary-age Ahuichila Formation conglomerate, a strongly coincident gold (“Au”), arsenic (“As”), antimony (“Sb”), mercury (“Hg”), thallium, silver, barium soil geochemical signature associated with a silicified mesa “cap” covering 2.5 km along the strike of the main zone, outcrops containing arsenopyrite, realgar, orpiment and stibnite, and low to non- anomalous base metal values”.
Radius Gold Inc., provided an update on drilling at its Tropico project in Zacatecas. The initial hole TDD-001 plan for 300m to intersect the Tropico breccia pipe encountered difficult ground conditions and was abandoned at 56m. “The hole from 19m to 56m is intensely altered with clay, silicification, variable zones of hydrothermal breccias and repeated sets of banded silica veins with fine sulphides and stockwork veining. Banded veining had not previously been seen on the property”. “The drill rig has been stepped back from the target an additional 25m and a new hole drilled deeper under hole TDD-001, this time using large diameter PQ sized core and casing which is expected to alleviate the drilling difficulties”.
ON MINING
No relevant news.
ON FINANCING
Equinox Gold Corp., announced that it has entered into an agreement to buy, on a bought deal basis, 4.75% unsecured convertible senior notes due 2028 in an aggregate principal amount of $150M. The company has granted the initial purchasers up to an additional $22.5M aggregate principal amount of notes. The notes will be issued at par value. Later on, the company announced that it had closed its previously announced bought deal offering of $172.5M aggregate principal amount of 4.75% unsecured convertible senior notes due 2028, which includes exercise of the full amount of the option to purchase an additional $22.5M aggregate principal amount of notes Net proceeds will be used for repayment of debt and for general corporate purposes (Mina Los Filos, Guerrero).
Excellon Resources Inc., announced debenture restructuring to reduce the outstanding principal amount to CAD $7.5M representing a reduction of CAD $10.4M (58% reduction), and to amend the terms of the remaining debentures to, among other things, further extend the maturity date to August 31, 2026. In exchange for CAD $10.4M aggregate principal amount of the debentures, Excellon to pay CAD $3.5M in equity, 25% interest in Silver City Project, plus additional non-dilutive contingency and royalty payments (La Negra Mine, Queretaro).
ON RESOURCES AND DEVELOPMENT
Golden Tag Resources Ltd., announced the commencement of a 7,000m drilling campaign at its La Parrilla Mine Complex in Durango. The 7,000m phase 1 drilling program will focus on infill and step-out drilling in proximity to underground mining infrastructure and existing development in three key areas: a) Rosarios and Cuerpo 340 Veins (3,000 m of drilling to test the east, west and central down-dip extensions; b) Quebradillas Underground (3,000 m of drilling to test the strike and down-dip extensions of three key zones including Cuerpo 460, Norte-Sur, and San Nicolas; and c) San Marcos (1,000 m of drilling to test the extension of San Marcos and Cuerpo 1100 at depth.
Tocvan Ventures Corp., provided an update on the acquisition of the Pilar project in Sonora and outlined target areas for the next phase of drilling. The company has exercised notice to Colibri Resources Corp., to purchase the remaining 49%. It also is completing a due diligence expected to finalize in coming weeks to acquire over 21 square-kilometers of land surrounding the Pilar, which contain recent placer activity, historic workings, and prospective geology, indicative that the area is highly prospective for gold and silver. “Tocvan plans to restart field operations at the close of the expansion acquisition to advance new target areas already identified quickly towards drill targeting. Drilling at Pilar and within the new expansion area is planned to total 2,000-meters before year end”.
Silver Valley Metals provided a corporate update on its MexiCan lithium-potassium projects located in Zacatecas-San Luis Potosi. Highlights of this project include that significant grades of lithium, potassium sulphate, and boron are located on surface in unconsolidated sediments; the brine potential has not been tested to date; deep basin large aquifer brine potential defined by regional geophysics surveys, remains to be tested; he inferred resource has been tested from surface to an average 5 metres depth; the company anticipates the sediment basin could range from 40m to greater than 100m deep, so the prospect of expanding the sediment resource at depth is substantial; and 12.3M tonnes of Potassium Sulphate and 243K tonnes of Lithium Carbonate Equivalent defined thus far. The company declared that discussions are active and advancing with LitioMX and near-term plans are in place to come together to potentially finalize a partnership agreement.
ON DEALS AND CORPORATE ISSUES
Luca Mining Corp., announced the appointment of its Director of Corporate Development. The company also granted incentive stock options to its employees and consultants to purchase an aggregate 225K share in the capital stock of the company (Tahuehueto project, Durango).
Santacruz Silver Mining Ltd., reported that an employee was fatality injured at its Zimapan Mine, Hidalgo. The fatality was the result of rockfall from a stope face.
GR Silver Mining Ltd., reported results from its annual general meeting of shareholders. Incumbent director Laura Diaz chose not to stand for re-election and was not a nominee (Plomosas project, Sinaloa).
Sierra Metals Inc., placed Cusi Mine in Chihuahua on care and maintenance and initiated a process to sell the mine. Ernesto Balarezo Valdez, Sierra Metals’ CEO, stated that “Sierra Metals is transitioning to become a copper-focused mining company, and the planned divestiture of Cusi will allow us to focus on our two key mines, Yauricocha in Peru and Bolivar in Mexico, where we have significant potential to continue growing our copper production”.
Radius Gold Inc., announced that it proposes, subject to TSX Venture Exchange approval, to issue 500K common shares of the company to Bruce Smith. The common shares will be issued at a deemed price of $0.24 per share, for a total deemed value of $120K (good for you Bruce!) (Tropico project, Zacatecas).
Angel Wing Metals Inc., announced the consolidation of its common shares on the basis of one post- consolidation common share for every two pre-consolidation shares issued and outstanding as of the close of business on September 20, 2023. (La Reyna project, Nayarit).
Bear Creek Mining Corporation announced results from its special meeting of shareholders (Mercedes Mine, Sonora).
Colibri Resource Corporation announced the retirement of its President and CEO, and its replacement (Evelyn project, Sonora).
Orex Minerals Inc., announced a consolidation of its issued and outstanding common shares at a ratio of ten pre-consolidation shares to one post-consolidation share. The reasons for the consolidation are to increase the company’s flexibility and competitiveness in the marketplace and to attract new equity investment in the company (Coneto project, Sonora).
Pan American Silver Corp., announced that it will host a conference call to discuss the company ´s environmental, social, and governance efforts, and development on October 19, 2023 at 11:00 am ET (8:00 am PT) (La Colorada, Zacatecas).
Silver Viper Minerals Corp., announced that it will present a live virtual corporate update hosted by Red Cloud Financial Services on September 28th, 2023 at 2:00 PM ET (La Virginia project, Sonora).
ON SOCIAL RESPONSIBILITY
MAG Silver Corp., published its second annual sustainability report. , which provides a comprehensive overview of the company’s environmental, social and governance (“ESG”) commitments, practices, and performance for the 2022 year. Highlights of the 2022 sustainability report include zero fatalities at the Juanicipio project, Zacatecas or at MAG´s exploration projects; a lost time injury frequency rate of 1.92; over 62,000 hours dedicated to safety training; zero significant environmental incidents at the Juanicipio and other projects; 66% of MAG Silver´s workforce is hired from local communities; over 13 community engagement initiatives across 4 different project streams at the Juanicipio project: health, education, capacity buildings, and microenterprise projects; 38% of Board directors are female, surpassing the 30% target established in MAG´s Diversity, Equity and Inclusion Policy; and Code of Conduct and Social Responsibility Policy refreshed and updated to specifically articulate the importance of engaging with Indigenous communities through meaningful dialogue, cooperation, and deepening of the shared-value approach to local development activities to promote sustainable and lasting economic and social benefits.
Ternium completed the restoration of the Cerro Náhuatl Mine and Jala Station Closure Plan in Coquimatlán, Colima, which covers a period from 2012 to 2022 in which reforestation works and programs were implemented. With this project, the forest area was increased by 88 hectares and the area was repopulated with 180 species of native fauna. It is a component of the company’s commitment to sustainability in the communities where it operates, according to a statement.
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, galena, sphalerite, and silver sulfosalts in a quartz vein from an intermediate sulphidation epithermal vein system in Sonora, Mexico Photo by Miguel A Heredia.
By Miguel A Heredia During the 32nd week of the year (August 07th to August 13th, 2023), at least 24 press releases were announced by companies working in Mexico, and 3 news published by the media, with twelve five communicating production and financial results, four commenting on Mexican issues, four disclosing deals and corporate issues, four announcing financing issues, two reporting resources and development of their properties,, and one informing on exploration results. ON MEXICO ISSUES, The union leader Carlos Pavón Campos achieved a milestone by obtaining an injunction against the limit on the payment of utilities in the mining sector. The economic impact of the Peñasquito, the largest gold mine in Mexico due to the stoppage of activities is over USD $220M. Heliostar and Coeur Mining reported the best drilling intercepts in Mexico on the second week of August, 2023. ON EXPLORATION, In Chihuahua, Kingsmen released results from 21 surface samples collected on the southeast portion of its Las Coloradas project. ON MINING, Aura Minerals reported Q2, 2023 production and financial results and provided 2023 production guidance (Aranzazu Mine, Zacatecas). Avino reported Q2, 2023 production and financial results from its Avino mine in Durango. Endeavour reported Q2, 2023 production and financial results from their Mexican mine operations. Gatos Silver reported Q2, 2023 financial results from its Cerro Los Gatos mine in Chihuahua, where it owns 70% interest. GoGold announced Q2, 2023 financial results (Parral Tailings project, Chihuahua). Golden Minerals reported Q2, 2023 financial results. Argonaut reported Q2, 2023 production and financial results from their Mexican mine operations. Starcore reported Q1, 2023 production results from its San Martin Mine in Queretaro. SilverCrest reported Q2, 2023 production and financial results from its Las Chispas mine in Sonora. Santacruz Mining reported Q2, 2023 production results from its Zimapan Mine in Hidalgo. Fortuna reported Q2, 2023 production and financial results from its San Jose Mine in Oaxaca. ON FINANCING, SilverCrest announced that it filed and received acceptance from the Toronto Stock Exchange (TSX) for a notice of intention to make a normal course issuer bid (Las Chispas Mine, Sonora). GR Silver closed the first tranche of a non-brokered private placement for gross proceeds of $329,875 (Plomosas project, Sinaloa). DynaResource announced that it has entered into a stock purchase agreement with Ocean Partners, under which the company issued 1M shares of common stock to Ocean Partners in exchange for USD $5M (San Jose de Gracia property, Sinaloa). Galore announced that it has entered into a loan agreement with a dedicated arm’s length shareholder of Galore (Dos Santos project, Zacatecas). ON RESOURCES AND DEVELOPMENT, Heliostar reported results from four holes drilled at its Ana Paula project in Guerrero. Coeur provided an update on the exploration program at its Palmarejo project in Chihuahua. ON DEALS AND CORPORATE ISSUES, US Antimony announced that a live webcast of a new company investor presentation will be given by Chairman of the Board (Los Juarez project, Qro). Argonaut appointed a new member to its Board of Directors (San Agustin Mine, Durango). Capitan Silver Corp., announced results from its annual and special meeting of shareholders (Cruz de Plata project, Durango). Santacruz announced management changes (Zimapan Mine, Hidalgo). ON SOCIAL RESPONSIBILITY, no relevant news. ON MEXICO ISSUE
The union leader Carlos Pavón Campos achieved a milestone by obtaining an injunction against the limit on the payment of utilities in the mining sector. “As part of the payment of utilities for 2022, we should have received around MXP $900M, and only MXP $300M were distributed, where were MXP $600M left, if the Constitution indicates that 10% must be paid of the profits that the companies obtained?”, expressed Carlos Pavón Campos. In an interview, Pavón Campos expressed that this “amparo” could set a precedent, since it is the way for all the workers who were affected in the payment of utilities to receive what corresponds to them, and not the three months of salary or the average of the last three years as established by the Federal Labor Law.
The economic impact of the Peñasquito, the largest gold mine owned by Newmont in Mexico due to the stoppage of activities is over USD $220M. Experts are concerned about the repercussions that the conflict will have for the company, the industry and for metal production, and also for the lack of dialogue between the company and the workers of the National Mining Union. The strike began on June 7 after more than 2,000 workers from Section 304 of the National Mining Union accused the company of violating the collective labor contract, of failing to comply with the Federal Labor Law, the T-MEC and the conventions of the International Labor Organization, but also omitting the full payment of profits to the workers. Newmont announced that is willing to negotiate with the Mining Union to lift the strike in Peñasquito. The gold mining company also denied having threatened the workers who are on strike, as denounced by section 34 of the National Mining Union. The gold-producing company assured that they have maintained constant communication with unionized and non-unionized workers to let them know the status of the negotiations they have had with the Union representatives. Finally, the company reiterated that it has complied in time and form with the payment of the PTU corresponding to fiscal year 2022 according to the audited financial statements.
Heliostar Metals Ltd., and Coeur Mining Inc., reported the best drilling intercepts in Mexico on the second week of August, 2023. Details are shown in the table below:
ON EXPLORATION
Kingsmen Resources Ltd., released results from 21 surface samples collected along the Soledad and Soledad II structures, on the southeast portion of its Las Coloradas project in Chihuahua. Four samples returned >300 g/t Ag; two returned > 200 g/t Ag; and one returned > 100 g/t Ag. The company reported that prospecting and sampling will continue on the property. Las Coloradas is located in the Parral mining district of the Central Mexican Silver Belt.
ON MINING
Aura Minerals Inc., reported Q2, 2023 production and financial results and provided a 2023 production guidance for its Aranzazu Mine in Zacatecas (currency is reported in US dollars). The company produced during the second quarter of the year 25,192 Gold Equivalent Ounces (GEO). It also provided an updated 2023 production guidance. Aura plans to produce between 104K-112K GEO at cash and AISC of $783-842 and $1,025-1,101 per GEO sold respectively, considering actual current prices, between 105K-114K GEO at cash and AISC of $710-769 and $936-1,012 per GEO sold respectively, considering actual constant prices, and between 101K-116K GEO at cash and AISC of $685-$788 and $898,1,033 per GEO sold respectively, considering previous current prices. For constant metal prices in the previous guidance, the company considered a Cu price of $3.60/Lb, a Au price of $1,740/Oz, and a Ag price of $22.50/Oz, while for current prices it considered a Cu price of $3.90/Lb, Au price of $1,925/ Oz, and a Ag price of $23.20/Oz.
Avino Silver & Gold Mines Ltd., reported Q2, 2023 production and financial results from its Avino mine in Durango (currency is reported in US dollars). The company milled 157,371 tonnes to produce 232.4K Oz Ag, 1,520 Oz Au, and 1.44M Lb Cu (587.3K Oz AgEq) at cash and AISC of $16.33 and $23.06 per AgEq payable Oz sold. The company reported revenues of $9.2M; mine operating income of $1M; net of none-cash costs of sales of $1.8M; net income of $1.1M or $0.01 per share; EBIDTA of $0.4M; adjusted earnings of $27K; and cash flow from operations of $503K. Avino also reported cash as per June 30, 2023 of $1.2M and a working capital of $4.6M.
Endeavour Silver Corp., reported Q2, 2023 production and financial results from their Mexican mine operations (currency is reported in US dollars). The company produced 1.49M Oz Ag and 9,819 Oz Au (2.3M Oz AgEq) at a cash and AISC of $13.52 and $22.15 per Oz payable silver respectively. Endeavour reported revenue of $50M from the sale of 1.3M Oz Ag and 9,883 Oz Au at average realized price of $24.13 per Oz Ag and $1,967 per Oz Au; a cash flow of $11.1M in operating cash flow before working capital changes and $18.8M in mine operating cash flow before taxes; a net loss of $1.1M or $0.01 per share; an adjusted earnings of $2.1M after adjusting for a $3.2M change in the fair value of investments; and a cash position of $43.5M and working capital of $78.2M.
Gatos Silver Inc., reported Q2, 2023 financial results from its Cerro Los Gatos mine in Chihuahua, where it owns 70% interest (currency is reported in US dollars). The company milled 265,342 tonnes of 265 g/t Ag, 4% Zn, 1.85% Pb, and 0.26 g/t Au to produce 2M Oz Ag, 14.8M Lb Zn, 9.7M Lb Pb, and 1,200 Oz Au (3.3M Oz AgEq) at co-product and by-product cash cost of $12.72 and $7.10 per Oz of payable AgEq respectively, and co-product and by-product AISC of $17.55 and $14.32 per Oz of payable AgEq respectively. Los Gatos reported (100% basis) revenue of $58.3M; a cost of sales of $25.8M; a cash flow from operations of $34.3M, a net income of $0.7M; a sustaining capital of $13.1M; an EBITDA of $27.5M, a free cash flow of $19.7M; and a net loss of $3.6M or $0.05 per share.
GoGold Resources Inc., announced Q2, 2023 financial results (currency is reported in US dollars) from its Parral Tailings project in Chihuahua. GoGold produced 203,894 Oz Ag, 1,512 Oz Au and 302,400 Lb Cu (375,112 Oz AgEq). The company reported revenue of $8.5M on the sale of 360K Oz AgEq at a realized per Oz Ag of $21.29 at adjusted cash and AISC of $15.54 and $20.85 respectively per Oz AgEq; a cash of $98.7M; a net income of $2.6M including interest income of $1.5M.
Golden Minerals Company reported its Q2, 2023 financial results (all figures are in US dollars). The company produced at its Rodeo mine in Durango, 1,828 Oz Au and 7,742 Oz Ag at average realized prices of $1,976 per Oz Au and $24.34 per Oz Ag. Golden reported revenue of $5M which includes Rodeo´s sale of metals, sales of Velardeña concentrates, and sales of Rodeo slag material; a net operating margin of $1.1M; cash and equivalents balance as of June 30, 2023 of $3.4M; zero debt and a net loss of $1.5M or $0.21 per share. At June 30, 2023 the company reported current assets of $8.6M including cash and cash equivalents of approximately $3.4M, and account payable and other current liabilities of $5.4M.
Argonaut Gold Inc., reported Q2, 2023 production and financial results from their Mexican mine operations (all dollar amounts are expressed in US dollars). At La Colorada Mine, Sonora, Argonaut reported that it sold 5,680 Oz Au; a cost of sales of $8.1M; a cost of sales per Oz Au of $1,425; a cash cost of $6M, and a cash and AISC of $1,059 and $1,217 per Oz Au sold respectively. At San Agustin Mine, Durango, the company sold 12,774 Oz Au; a cost of sales of $21.9M; a cost of sales per Oz Au of $1,717; a cash cost of $17.7M, and a cash and AISC of $1,386 and $1,474 per Oz Au sold respectively. On August 4, 2023, the company signed an agreement to acquire the necessary land to complete mining of the current reserve base at the San Agustin Mine. Subject to receipt of the necessary permit, expected later this year, mining is expected to continue into 2025. At El Castillo Mine, Durango, Argonaut sold 5,502 Oz Au; a cost of sales of $8.54M; a cost of sales per Oz Au of $1,553; a cash cost of $7.44M, and a cash and AISC of $1,353 per Oz Au sold.
Starcore International Mines Ltd., reported Q1, 2023 production results from its San Martin Mine in Queretaro. The company milled 57,700 tonnes of 1.13 g/t Au and 14 g/t Ag (1.92 g/t AuEq) at metallurgical recoveries of 83.99% and 45.82% respectively, to produce 1,918 Oz AuEq.
SilverCrest Metals Inc., reported Q2, 2023 production and financial results from its Las Chispas mine in Sonora (all amounts are presented in US dollars). SilverCrest mined 74,400 tonnes and milled 107,900 tonnes of 4.84 g/t Au and 449 g/t Ag with metallurgical recoveries of 96.4% and 97.9% respectively, to recover 16,550 Oz Au and 1.53 M Oz Ag. The company sold a total of 13,400 Oz Au and 1.45M Oz Ag at average realized prices of $1,991 per Oz Au, and $24.36 per Oz Ag. SilverCrest reported revenue of $62M; a cost of sales of $23.7M resulting in mine operating income of $38.3M; an income of $23.7M or $0.16 per share, inclusive of an $8.6M ($0.06 per share) unrealized foreign currency loss; an increased cash balance by $7.6M and bullion holdings by $3.6M during the quarter, after, sustaining capital at Las Chispas of $10.1M and retiring $25M of debt; cash flow from operating activities before changes in non-cash working capital items of $47.5M or $0.32 per share; and cash costs of $7.39 per Oz AgEq sold and all-in sustaining cost (AISC) of $12.70 per Oz AgEq sold based on accelerated spend towards exploration and for sustaining capital to create operational flexibility. The company ended the quarter debt free with treasury assets totaling $59M (cash of $53.4M and gold and silver bullion of $5.6M). Access to an undrawn $70M revolving credit facility remains. In addition, the company provided production guidance for H2, 2023, it expects to produce 4.8 to 5.2M Oz AgEq at cash and AISC of $7-8.50 and $13.75-15.50 per Oz AgEq sold respectively. For the full 2023 year the SilverCrest expects to produce 9.8-10.2 M Oz AgEq at cash and AISC of $7.50-8.50 and $12.75-13.75 per Oz AgEq respectively.
Santacruz Silver Mining Ltd., reported Q2, 2023 production results from its Zimapan Mine in Hidalgo. The company processed 171,668 tonnes of 69 g/t Ag, 0.67% Pb, 2.25% Zn, and 0.33% Cu with metallurgical recoveries of 71%,74$,71%, and 53% respectively to produce 271.1K Oz Ag, 1.9M Lb Pb, 6.14M Lb Zn, and 665.3K Lb Cu (878.8K Oz AgEq).
Fortuna Silver Mines Inc., reported Q2, 2023 production and financial results from its San Jose Mine in Oaxaca (all amounts are expressed in US dollars). The company milled 194,887 tonnes of 168 g/t Ag and 1.02 g/t Au at metallurgical recoveries of 91% and 90% respectively, to produce 957.3K Oz Ag and 5,778 Oz Au. Fortuna sold 942.7K Oz Ag and 5,695 Oz Au at realized prices of $24.09/Oz Ag and $1,973/Oz Au. The company reported a cash cost of $102.77/tonne and a cash and AISC of $15.93 and $24.07 per Oz AgEq respectively. It also reported sustaining expenditures of $3.6M; non-sustaining expenditures of $524K; and brownfield expenditures of $788K.
ON FINANCING
SilverCrest Metals Inc., announced that it filed and received acceptance from the Toronto Stock Exchange (TSX) for a notice of intention to make a normal course issuer bid pursuant to TSX requirements permitting the company to purchase up to 7,361,563 common shares of the company, representing approximately 5% of SilverCrest’s total issued and outstanding common shares. As of August 9, 2023 SilverCrest had 147,231,264 issued and outstanding common shares (Las Chispas Mine, Sonora).
GR Silver Mining Ltd., closed the first tranche of a non-brokered private placement. The company issued 6,597,500 units for gross proceeds of $329,875. GR Silver paid $8,100 and issued a total of 162,000 warrants as finder´s fees. Each finder’s warrant is exercisable for one common share at a price of $0.08 for two years (Plomosas project, Sinaloa).
DynaResource Inc. announced that it has entered into a stock purchase agreement with Ocean Partners UK Limited, under which the company issued 1M shares of common stock to Ocean Partners in exchange for USD $5M. Ocean Partners, through its 100% owned subsidiary in Mexico – MK Metals Trading (MK), and Dyna Mexico have formalized the extension of their commercial offtake agreement through December 31, 2026, and with revision of the next terms: OP / MK agreed to Increase the Advance Credit Line available to Dyna Mexico to USD $17.5M; OP / MK agreed to provide an Option to convert the Advance Credit Line into a Revolving Credit Line, repayable in 12 months, in maximum amount of USD $10M. The Company and Dyna Mexico plan to utilize the funds received from Ocean Partners to further expand and increase test mining and milling activities at San Jose de Gracia project in Sinaloa (SJG), to continue exploration drilling and related exploration activities at SJG, and for general corporate purposes.
Galore Resources Inc., announced that it has entered into a loan agreement with a dedicated arm’s length shareholder of Galore. The lender has provided the company with a cash loan of USD $20K. The Loan shall bear an interest rate of 9% per annum compounded quarterly, due for repayment on August 3, 2024. The funds will be used for obtaining assay results from the company’s most recent drill program at its Los Gemelos property within its Dos Santos project, Zacatecas.
ON RESOURCES AND DEVELOPMENT
Heliostar Metals Ltd., reported results from four holes drilled at its Ana Paula project in Guerrero. Drilling highlights include hole AP-23-300 with 32.1 g/t Au over 2.7m, plus 7.96 g/t Au over 72m, including 31.8 g/t Au over 9.5m; hole AP-23-302 with 5.01 g/t Au over 51.8m, including 11.6 g/t Au over 4.72m, plus 2.63 g/t Au over 17.6m, including 21.4 g/t Au over 1.36m; and hole AP-23-299 with 6.95 g/t Au over 38m, including 15.8 g/t Au over 11m, including 23.3 g/t Au over 6m. These four holes continue to assess mineralization up- plunge of the High Grade Panel at the core of Ana Paula.
Coeur Mining Inc., provided an update on the exploration program at its Palmarejo project in Chihuahua. Drilling at Hidalgo encountered the highest gold grades ever at Palmarejo and extended high-grade mineralization along strike to the NW in the direction of the Palmarejo processing facilities. Hidalgo comprises three individual veins: Hidalgo, San Juan, and Libertad. Drilling highlights at Hidalgo Vein include holes HGDH_118 with 15.1m of 2.8 g/t Au and 265 g/t Ag; hole HGDH_127 with 10.6m of 3.4 g/t Au and 248 g/t Ag; hole HGDH_137 with 5.8m of 41.1 g/t Au and 496 g/t Ag; and hole HGDH_151 with 8.7m of 3.0 g/t Au and 142 g/t Ag. Drilling highlights at San Juan include hole HGHD_145 with 5.6m of 3.1 g/t Au and 240 g/t Ag. Drilling highlights at Libertad include hole HGDH_149 with 7.5m of 3.0 g/t Au and 170 g/t Ag. Coeur also reported that the infill and expansion drilling program completed at La Nacion and Zapata Deposits has been successful. Notable results from the infill drilling program include holes LBDH_237 with 2.2m of 1.51 g/t Au and 177 g/t Ag); Hole LBDH_239 with 3.3m of 1.71 g/t Au and 514 g/t Ag; hole DC3-ZPA-0018 with 3.8m of 8.1 g/t Au and 685 g/t Ag; hole DC3-ZPA-0042 with 5.7m of 2.02 g/t Au and 131 g/t Ag; and hole DC3-ZPA-0048 with 7.4m at 1.98 g/t Au and 86 g/t Ag, plus 2.2m grading 4.16 g/t Au and 307 g/t Ag)
ON DEALS AND CORPORATE ISSUES
US Antimony Corporation announced that a live webcast of a new company investor presentation will be given by Chairman of the Board (Los Juarez project, Qro).
Argonaut Gold Inc., appointed a new member to its Board of Directors, effective August 10, 2023 (San Agustin Mine, Durango).
Capitan Silver Corp., announced results from its annual and special meeting of shareholders (Cruz de Plata project, Durango).
Santacruz Silver Mining Ltd., announced that Carlos Silva Ramos is stepping down from his role as CEO and Director due to personal reasons (Zimapan Mine, Hidalgo).
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, breccia cemented by tourmaline in a porphyry copper project in Chihuahua, Mexico. Photo by Miguel A Heredia.
By Miguel A Heredia During the 28th week of the year (July 10th to July 16th, 2023), at least 32 press releases were announced by companies working in Mexico, and 1 news published by the media with ten communicating production and financial results, six disclosing deals and corporate issues, five informing on exploration results, five reporting resources and development of their properties, three announcing financing issues, three commenting on Mexican issues, and one discussing social issues. ON MEXICO ISSUES, Almadex dropped several of its legacy projects in Mexico (Yago and Las Lajas projects in Nayarit and San Luis Potosi States respectively). Galore announced that due to some recent changes in the mining laws enacted by the Mexican Government, Galore employed the services of a Law firm in Mexico to file an Amparo (injunction). In 2022, the production of zinc, one of the six main metals that Mexico produces for its internal use and for export, was reduced because the federal authorities decided to reduce the operations of the mines. Torex Gold, Sierra Madre, Vizsla, and Prime Mining reported the best drilling intercepts in Mexico on the second week of July, 2023. ON EXPLORATION, In Sonora, Canuc acquired an additional 96.5051 hectares claim contiguous with the company´s existing claims at its San Javier project, and Colibri submitted an application for additional drilling at its Evelyn project. In Coahuila, Monumental Minerals commenced a drilling program at its Jemi Rare Earth Element project. In Sinaloa, Prismo provided an update of the current drilling program at its Palos Verdes project. In Nayarit, Sierra Madre presented results from four additional holes drilled at its la Tigra project. ON MINING, Aura Minerals, Endeavour, Fortuna Silver, GoGold, and Orla reported Q2, 2023 production results from their Mexican mine operations. Capstone and Argonaut commented that they will release their Q2, 2023 production results on August 2 and August 11 respectively. Guanajuato Silver commenced a high-grade pillars exploitation program at its la Valenciana Mine Complex in Guanajuato. Gold Resource reported Q2 and H1, 2023 production results from Don David Gold Mine in Oaxaca. Guanajuato Silver announced Q2, 2023 consolidated production results from their Mexican mine operations. ON FINANCING, GR Silver announced a non-brokered private placement to raise total gross proceeds of up to $1M (Plomosas project, Sinaloa). Bear Creek communicated that it plans to conduct a non-brokered private placement for gross proceeds of up to CAD $8.2M (Mercedes Mine, Sonora). Heliostar closed its previously announced private placement for gross proceeds of approximately $7M (Ana Paula project, Guerrero). ON RESOURCES AND DEVELOPMENT, GoGold reported on the proposed SART Zn Circuit for its Parral Tailings Project in Chihuahua. Prime Mining released results from 9 holes drilled at its Los Reyes property in Sinaloa. Sonoro identified oxide mineralized target for resource expansion at its Cerro Caliche project in Sonora. Vizsla announced results from 20 expansion drill holes targeting the Copala Resource Area at its Panuco project in Sinaloa. Torex presented assay results from its ongoing drilling program at its El Limon-Guajes underground mine in Guerrero. ON DEALS AND CORPORATE ISSUES, Almaden granted stock options to directors, officers, consultants and employees of the Company (Ixtaca project, Puebla). Azucar granted stock options to directors, officers, employees, and consultants of the Company (El Cobre, Veracruz). GR Silver announced Board and Management changes (Plomosas project, Sinaloa). Monumental Minerals reported results from its annual general meeting of shareholders (Jemi Rare Earth Element project, Coahuila). Colibri reported results from its annual general meeting of shareholders (Pilar project, Sonora). Regency Silver announced that it has engaged Kin Communications to assist with its investor relations activities (Dios Padre project, Sonora). (ON SOCIAL RESPONSIBILITY, Industrias Peñoles confirmed that it promotes a culture of environmental care in communities.
ON MEXICO ISSUES
Almadex Minerals Ltd., dropped several of its legacy projects in Mexico (Yago and Las Lajas projects in Nayarit and San Luis Potosi States respectively), “where exploration progress is challenged by numerous impediments to timely progress”.
Galore Resources Inc., announced that due to some recent changes in the mining laws, enacted by the Mexican Government, Galore employed the services of a Law firm in Mexico to file an Amparo (injunction). “An Amparo is a constitutional remedy that protects individuals and entities against violations of their constitutional rights, in which this Amparo is the only legal remedy to challenge the constitutionality of the new mining laws. In the case of the Mining Concessionaires, it is important to exercise this right and obtain a resolution to make sure the authority will respect rights of previous concessions”.
In 2022, the production of zinc, one of the six main metals that Mexico produces for its internal use and for export, was reduced because the federal authorities decided to reduce the operations of the mines. According to the Mexican Mining Chamber (CAMIMEX), the 2022 national mining production registered 744,324 tons, showing a decrease because in Zacatecas Newmont’s Peñasquito project reduced its tonnage to 34,473, while Fresnillo plc’s El Saucito project also limited its production to 9,054 tons less. In addition, the mines La Platosa owned by Excellon Resources, La Cienega owned by Fresnillo plc and Velardeña owned by Industrias Peñoles decreased their volumes by 40.6%, 15.5% and 4.6%, respectively. Chihuahua is another state whose production decreased with Grupo Mexico’s Santa Barbara project, which registered 20,696 tons, 11.5% lower than the previous year; and San Francisco del Oro from Minera Frisco with 17,923 tons, 4.3% less compared to 2021. Other states in which their mines decreased their production were: San Luis Potosí, with Charcas from Grupo Mexico, with an annual decrease of 16.4%; in Aguascalientes, Asientos of Minera Frisco, with 11.3%; in the State of Mexico, Tizapa with 5.9%, and in Guerrero with Capela, with 5.4%, both from Industrias Peñoles. Also, located in Guerrero, Luca Mining’s Campo Morado reduced its production by 23.2%. Zacatecas continued to be the most important, since its participation represented 48.4% of the national total and meant an increase of 1% compared to 2021. Durango was in second place in zinc mining production, but reduced its production by 2.2% in 2022 compared to 2021, due to lower production in Santiago Papasquiaro of 16.3%. While Chihuahua was positioned in third place, where production remained unchanged compared to 2021; the largest reduction in state tonnage was due to the municipality of San Francisco del Oro. “By company, Newmont was the largest national zinc producer in 2022, with a 23% share. The four most important companies of national origin that participate in the extraction of this metal are: Industrias Peñoles, Fresnillo plc, Grupo Mexico and Minera Frisco, which represented 50% of the total last year”, the document reiterates. CAMIMEX assured that there are projects that will boost the growth of zinc production in Mexico in the next five years and that, if they are taken advantage of, they could place Mexico among the top five producers worldwide. The foregoing would also mean a recovery of the industry after the impact of the pandemic and the impact on mineral prices. Among the main projects with this metal content in Mexico, Grupo Mexico’s Buenavista Zinc in Sonora stands out, as well as the San Nicolas development of Agnico Eagle-Teck in Zacatecas.
Torex Gold Resources Inc., Sierra Madre Gold and Silver Ltd., Vizsla Silver Corp., and Prime Mining Corp., reported the best drilling intercepts in Mexico on the second week of July, 2023. Details are shown in the table below:
ON EXPLORATION
Canuc Resources Corporation acquired an additional 96.5051 hectares claim contiguous with the company´s existing claims at its San Javier project in Sonora. This claim covers prospective ground and the acquisition of this additional claim brings the company´s total contiguous claim position to 1,052.9 hectares comprised in 28 claims.
Colibri Resource Corporation submitted an application to the Mexican environmental agency (SEMARNAT) to drill up to 2,000 additional meters of RC in the Main Zone and West El Sahuaro at its Evelyn project in Sonora. The plan is to drill 1,200m at the Main Zone and 800m at the West Sahuaro Zone.
Monumental Minerals Corp., commenced a drilling program at its Jemi Rare Earth Element (REE) project in Coahuila. The program begun on the first drill target on the Veladora North prospect with the goal of testing areas with high concentrations of REE-mineralized dykes and sills at the surface. Monumental is planning to test a total of 6 drill targets to approximately 300 m each during this maiden campaign.
Prismo Metals Inc., provided an update of the current drilling program at its Palos Verdes project in Sinaloa. The Company has completed 1,239m of drilling in seven holes, with the 8th hole in progress. The company expects to release assay results from the first seven holes during the week of July 17.
Sierra Madre Gold and Silver Ltd., presented results from four additional holes drilled at its la Tigra project in Nayarit. Drilling highlights include hole LTDH005 with 2.49 g/t Au and 9 g/t Ag (2.60 g/t AuEq) over 20m, including 4.26 g/t Au and 14 g/t Ag (4.45 g/t AuEq) over 10.7m; and hole LTDH-006 with 7.11 g/t Au and 11 g/t Ag (7.25 g/t AuEq) over 5.95m, including 24.35 g/t Au and 10 g/t Ag (24.49 g/t AuEq) over 1.6m.
ON MINING
Aura Minerals Inc., reported Q2, 2023 production results from its Aranzazu Mine in Zacatecas. The company produced 25,192 Oz AuEq, a 4% lower compared to Q2, 2022 due to metal prices.
Endeavour Silver Corp., reported Q2, 2023 consolidated and mine-by-mine production results from their Mexican mine operations. The tables below show consolidated and mine-by-mine figures for the period Q2, 2023 and a comparative to Q2, 2022:
Fortuna Silver Mines Inc., reported Q2, 2023 production results from its San Jose Mine in Oaxaca. The company milled 194,887 tonnes of 168 g/t Ag and 1.02 g/t Au with metallurgical recoveries of 90.83% and 90.24% respectively to produce 957.3K Oz Ag and 5,778 Oz Au.
GoGold Resources Inc., reported Q2, 2023 production results from its Parral Tailings project in Chihuahua. The company produced 203.9K Oz Ag, 1,512 Oz Au, and 302.4K Lb Cu (375.1K Oz AgEq).
Orla Mining Ltd., reported Q2, 2023 production results from its Camino Rojo Mine in Zacatecas. The company mined 1,787,125 tonnes of 0.76 g/t Au and processed 1,729,374 tonnes of 0.77 g/t Au to produce 29,058 Oz Au. The company sold 29,773 Oz Au. As at June 30, 2023, Orla had a cash position of $114.5M.
Capstone Copper Corp., and Argonaut Gold Inc., commented that they will release their Q2, 2023 production results from their Mexican mine operations on August 2 and August 11 respectively.
Guanajuato Silver Company Ltd., commenced a high-grade pillars exploitation program at its la Valenciana Mine Complex in Guanajuato. The Valenciana Mines Complex has hundreds of small and large mining pillars located throughout an underground mine network that extends over 4km in strike length and 700m in vertical extent The Company estimates that that there are a minimum of 50 high-grade pillars that have the potential to be extracted as part of this program. Pillars are evaluated for their extraction suitability and mineral potential using the polygon method that calculates the volume, grade and tonnage for each pillar structure.
Gold Resource Corporation reported Q2 and H1, 2023 production results from Don David Gold Mine in Oaxaca. Figures are shown in the table below:
Guanajuato Silver Company Ltd., announced Q2, 2023 consolidated production results from their Mexican mine operations. Production results are generated from the Company’s wholly owned El Cubo Mines Complex, Valenciana Mines Complex, and San Ignacio Mine in Guanajuato, Mexico, and the Topia Mine in Durango, Mexico. Figures are shown in the table below:
ON FINANCING
GR Silver Mining Ltd., announced a non-brokered private placement of units to raise total gross proceeds of up to $1M. Each unit will consist of one common share of the company and one-half (½) of one common share purchase warrant. Each whole warrant will entitle the holder to purchase one common share of the company at a price of $0.12 at any time on or before that date which is 24 months after the closing date of the offering. Gross proceeds will be used for advancement of studies on the company’s Plomosas Project and for general working capital.
Bear Creek Mining Corporation communicated that it plans to conduct a non-brokered private placement of 16,725,000 common shares at a price of CAD $0.49 per share for gross proceeds of up to CAD $8.2M. Gross proceeds will be used for exploration and production improvements at its Mercedes gold mine Sonora, and for general corporate purposes.
Heliostar Metals Ltd., closed its previously announced private placement of 9,990,200 units of the company at a price of $0.37 per unit for gross proceeds of approximately $7M. Gross proceeds will be used to continue the exploration and development work on its Ana Paula project in Guerrero, as well as for general corporate working capital purposes.
ON RESOURCES AND DEVELOPMENT
GoGold Resources Inc., reported on the proposed SART Zn Circuit for its Parral Tailings Project in Chihuahua. Highlights include a saleable Zn precipitate to be added to the revenue stream; regeneration of approximately 750 tons of cyanide per quarter; anticipated to generate net increased cash flows of $1.5M per quarter; Zn Circuit capital expenditure estimated at $2M over 6 month construction period; project payback expected within 6 months after construction; construction of the Zn Circuit is independent of current SART operations, therefore no interruption to current operations is expected; Parral up to end of its mine life will be a producer of Ag, Au, Cu, and Zn.
Prime Mining Corp., released results from 9 holes drilled at the Noche Buena Zone located in the southeastern most end of the Central Area at its Los Reyes property in Sinaloa. Drilling highlights (estimated true widths reported) include hole 23NB-46 with 4.11 g/t Au and 68 g/t Ag (4.99 g/t AuEq) over 9.1m, including 31.40 g/t Au and 470 g/t Ag (37.48 g/t AuEq) over 1.1m; hole 23NB-39 with 1.23 g/t Au and 21 g/t Ag (1.50 g/t AuEq) over 14m, including 4.19 g/t Au and 76 g/t Ag (5.17 g/t AuEq) over 2m, and hole 23NB-40 with 1.86 g/t Au and 30 g/t Ag (2.25 g/t AuEq) over 5.7m, including 4.75 g/t Au and 68 g/t Ag (5.62 g/t AuEq) over 1.4m.
Sonoro Gold Corp., identified oxide mineralized target for resource expansion at its Cerro Caliche project in Sonora. “Surface sampling and detailed geologic mapping completed in the northwest region of the property demonstrate three linear structural corridor repetitions with anomalous gold, silver and base metal mineralization, as well as a fourth visually inferred corridor”. Geological mapping and sampling conducted on these areas suggest the potential expansion of the project’s oxide gold mineralized zones and resource.
Vizsla Silver Corp., announced results from 20 expansion drill holes targeting the Copala Resource Area at its Panuco project in Sinaloa. Drilling highlights (true width reported) include hole CS-23-297 with 310 g/t Ag and 2.32 g/t Au (445 g/t AgEq) over 18.5m; hole CS-23-290 with 565 g/t Ag and 3.48 g/t Au (760 g/t AgEq) over 5.05m, including 2,838 g/t Ag and 12.29 g/t Au (3,469 g/t AgEq) over 1m; hole CS-23-286 with 417 g/t Ag and 3.74 g/t Au (640 g/t AgEq) over 4.8m, including 1,585 g/t Ag and 16.2 g/t Au (2,568 g/t AgEq) over 0.68m; and hole CS-23-294 with 6,880 g/t Ag and 16.5 g/t Au (7,512 g/t AgEq) over 1m. These results expand the Copala mineralized footprint laterally by ~370m to the southeast and ~50m to the north.
Torex Gold Resources Inc., presented assay results from its ongoing drilling program at its El Limon-Guajes underground mine in Guerrero, including zones referred as El Limon Deep, Sub-Sill, Sub-Sill South, El Limon Sur Deep, and El Limon West (collectively El Limon-Guajes Underground). The best drill intercepts were encountered in hole LS-220 with 88.61 g/t Au, 21 g/t Ag, and 0.04% Cu (88.92 g/t AuEq) over 14.46m, including 75.53 g/t Au, 30 g/t Ag, and 0.04% Cu (75.97 g/t AuEq) over 2m, including 757.86 g/t Au, 126 g/t Ag, and 0.04% Cu (759.47 g/t AuEq) over 1.29m; hole LS-221 with 9.86 g/t Au, 42 g/t Ag, and 0.52% Cu (11.2 g/t AuEq) over 29.38m, including 25.21 g/t Au, 29 g/t Ag, 0.25% Cu (26.06 g/t AuEq) over4.55m, including 25.61 g/t Au, 108 g/t Ag, and 1.27% Cu (28.98 g/t AuEq) over 3.38m, plus 11.84 g/t Au, 74 g/t Ag, and 3.93% Cu (19.03 g/t AuEq) over 13.31m, including 21.18 g/t Au, 94 g/t Ag, and 3.72% Cu (28.29 g/t AuEq) over 5.5m. “These drill results, which include several higher-grade sub-intervals in addition to other impressive intersects, validate the high grade potential associated with the area that runs from El Limón Sur Deep to the La Flaca fault (600 m), known as the El Limón Sur Trend, with potential to extend deeper”.
ON DEALS AND CORPORATE ISSUES
Almaden Minerals Ltd., granted stock options to directors, officers, consultants and employees of the Company to purchase an aggregate 1,110,800 common shares in the capital of the Company at an exercise price of $0.28 per share expiring on July 10, 2028. (Ixtaca project, Puebla).
Azucar Minerals Ltd., granted stock options to directors, officers, employees, and consultants of the Company to purchase 1,060,800 common shares in the capital of the Company at an exercise price of $0.05 per share which expire on July 10, 2028. (El Cobre, Veracruz).
GR Silver Mining Ltd., announced Board and Management changes aiming to position the company for continued growth under current market conditions. The company announced the resignations of one of its Directors and the CFO, and announced the appointment of two new Directors to its Board of Directors, and the return to the company of Mr. Blaine Bailey as interim CFO (former CFO retired in May 2023) (Plomosas project, Sinaloa).
Monumental Minerals Corp., reported results from its annual general meeting of shareholders (Jemi Rare Earth Element project, Coahuila).
Colibri Resources Corporation reported results from its annual general meeting of shareholders (Pilar project, Sonora).
Regency Silver Corp., announced that it has engaged Kin Communications Inc., to assist with its investor relations activities, “including communicating with, and marketing to, potential investors, shareholders, and media contacts for a period of 12 months. In consideration for the services, the Company has agreed to pay Kin CAD $15K per month plus GST for the initial 12-month period. In addition, the Company has granted Kin stock options entitling it to purchase 500K of the Company’s common shares at a price of CAD $0.20 per share with a five-year term (Dios Padre project, Sonora).
ON SOCIAL RESPONSIBILITY
Industrias Peñoles S.A.B. de C.V., confirmed that it promotes a culture of environmental care in communities, for which the company periodically implements a series of activities with its collaborators and with the communities in which it operates. More than five thousand people from 42 communities close to the mine operations attended the activities, including: training for personnel and contractors; talks in educational centers of basic and upper secondary level; sports activities; reforestation of community properties; donation of endemic tree species from each region; cleaning days in the communities; and eco-fairs and recreational activities.
Content like what you have just read can be seen at https://gambusinoprospector.com/ and at LinkedIn’s Mexico Mineral Exploration Group.
On the picture above, a REDOX front in a Red-Bed Cu prospect in Tamaulipas, Mexico. Photo by Miguel A Heredia.
During the 26th week of the year (June 26th to July 2nd, 2023), at least 33 press releases were announced by companies working in Mexico, and 2 news published by the media with eleven disclosing deals and corporate issues, eleven announcing financing issues, five reporting resources and developments of their properties, four informing on exploration results, two commenting on Mexican issues, and one communicating production and financial results. ON MEXICO ISSUES, Silver Bull commenced international arbitration proceedings against the United Mexican States for the Mexico’s unlawful expropriation and other unlawful treatment of Silver Bull and its investments. Violent mining takeover in Coahuila; point to followers of Senator Napoleón Gómez Urrutia. ON EXPLORATION, In Sonora, Prismo released trenching sampling results from its Los Pavitos project, and Colibri outlined mineralized structures on the Banco de Oro and Bonancita target areas at its the Plomo project. In Chihuahua, Reyna Silver commenced a drilling program at its Batopilas project. In Sinaloa, Prismo commented that it is currently drilling at its Palos Verdes project. In Durango, Orex secured surface access and core storage facilities for exploration on its Sandra Silver-Gold project. ON MINING, Gatos Silver reported Q1, 2023 financial results for its Cerro Los Gatos mine in Chihuahua where it owns a 70% interest. ON FINANCING, Golden Minerals entered into a definitive agreement for the purchase and sale of an aggregate of 1,427,587 shares of commons stock at a price of USD $1.45 per unit (USD $2.1M) in a registered direct offering, which was closed later on obtaining the previously announced gross proceeds of USD $2.1M from the direct offering (Rodeo mine, Durango). Avino renewed a new short form base shelf prospectus and a prospectus supplement in Canada, to distribute common shares from time to time pursuant to a sales agreement with Cantor Fitzgerald & Co., H.C. Wainwright & Co., LLC, Roth Capital Partners, LLC, and A.G.P./Alliance Global Partners, in the United States up to the aggregate sales amount of USD $25M (Avino mine, Durango). Endeavour entered into a sales agreement with some Agents to raise up to USD $60M (Terronera project, Jalisco). Advance Lithium announced a non-brokered private placement for gross proceeds of up to $1M (Sarape project, Sonora). Aloro stated that due to market conditions it will not be proceeding with the previously announced private placement dated on March 03, 2023 (Quitovac project, Sonora). Heliostar announced a brokered private placement for gross proceeds of $5M; the same that later on was increased to up to $7M (Ana Paula project, Guerrero). Luca Mining closed the third and final tranche of its previously announced private placement for gross proceeds of CAD $24,896,551 (Tahuehueto project, Durango). Benjamin Hill announced that its previously announced non-brokered private placement has been extended to allow the Company and its investors time to complete and deliver subscription agreements (Sonora Gold project, Sonora). Colibri declared that it intends to conduct a non-brokered private placement for gross proceeds of up to USD $1M (Evelyn project, Sonora). ON RESOURCES AND DEVELOPMENT, Southern Silver reported that metallurgical scoping tests confirm the technical feasibility of recovering both free cyanide-leachable gold and refractory gold from pyritic material (Cerro Las Minitas project, Durango). Minaurum extended the Environmental Impact Statement (MIA) for the development of its Alamos Silver project in Sonora. Guanajuato Silver provided an updated PEA for its El Cubo Mine Complex in Guanajuato. Luca Mining hit 500 tonnes per day milestone at its Tahuehueto project in Durango. GoGold filed a National Instrument 43-101 PEA technical report for its Los Ricos North project in Jalisco. ON DEALS AND CORPORATE ISSUES, Bear Creek granted incentive stock option to its recently promoted President and CEO (Mercedes Mine, Sonora). Mag Silver, Almaden, Sierra Metals, Goldgroup, Aztec Minerals, and Guanajuato Silver reported results from their annual general and special meeting of shareholders. Goldgroup issued a press release to clarify and retract certain disclosures with respect to the Company’s Cerro Prieto and San Jose de Gracia projects in Sonora and Sinaloa respectively. Canasil announced that the British Columbia Securities Commission revoked the temporary management cease trade order issued against certain insiders of the company (Nora project, Durango). Gatos Silver provided bi-weekly status report in accordance with National Policy 12-203- Management Cease Trade Order (Cerro Los Gatos Mine, Chihuahua). Tarachi has decided to discontinue the option agreement with Exploradora Cobre de Bacanora for the properties located in Sonora (Magistral Mill & Tailings project, Durango).. (ON SOCIAL RESPONSIBILITY, Industrias Peñoles and Fresnillo plc, Mexican mining companies of Grupo BAL, in favor of reforestation.
ON MEXICO ISSUE
Silver Bull Resources Inc., commenced international arbitration proceedings against the United Mexican States under the Agreement between the United States of America, Mexico, and Canada, and the North American Free Trade Agreement, for the Mexico’s unlawful expropriation and other unlawful treatment of Silver Bull and its investments resulting from the illegal blockade of Silver Bull’s Sierra Mojada project in Coahuila.
Violent mining takeover in Coahuila; point to followers of Senator Napoleón Gómez Urrutia. With short weapons, machetes and bats, people identified as related to the Morenista senator Napoleón Gómez Urrutia seized the town of Hércules, in Coahuila, a place of little more than 8 thousand inhabitants that was generated around the operations of extraction of iron from Minera Del Norte, a subsidiary of Altos Hornos de México (AHMSA). In a statement, the Mining Union indicated that the conflict occurred after a group majority of workers from Minera Del Norte and AHMSA decided to abandon the organization headed by Gómez Urrutia to join the National Democratic Union of Miners, and he has responded the same as he did in Zacatecas, Guerrero, Sonora and other areas, generating violence and stopping the activities of the mining companies. Minera Del Norte is the main iron extraction company in the region; all the material extracted by the workers is sent to Monclova through a 300 kilometer railway, for use as an input in the AHMSA smelting furnaces.
ON EXPLORATION
Prismo Metals Inc., released trenching sampling results from its Los Pavitos project in Sonora. Highlights assays include ZA2 (Auras Zone) with 2.2 g/t Au and 23 g/t Ag over 19m long, including 10.3g/t Au and 104 g/t Ag over 4m long; ZSC9 (Santa Cruz Zone) with 0.5 g/t Au over 8m long; and ZSC10 with 2.3 g/t Au and 13 g/t Ag over 7.8m long. The company intends to explore these mineralized zones by drilling, planned to commence shortly.
Colibri Resource Corporation outlined mineralized structures on the Banco de Oro and Bonancita target areas at its the Plomo project in Sonora. At the Banco de Oro target, the mineralization consists of brecciated quartz veins hosted in foliated sericitized and pyrite bearing rhyolites. Recent geological mapping and sampling has covered an area of approximately 41 hectares, extending approximately 500m north of the historic Banco de Oro mine. Gold values were detected in 46 of the 64 analyzed samples, of which 14 samples returned >0.1 g/t Au, with a high grade of 1.45 g/t Au. At the Bonancita target, mineralization consists of four prospects, all of which contain historical assays from outcrop samples returning > 1 g/t Au. Three of the prospects, Bonancita, Bonancita NWI and Bonancita NWII form a NW trend approximately 2 km in length which is coincident with both a strong topographic lineament and with a strong, NW trending, regional scale magnetic gradient lineament. The recent geological mapping and sampling was conducted on the southernmost prospect, where the objective was to evaluate a NW mineralized trend defined by historical sampling including a high value of 7.62 g/t Au. The exploration program covered over 60 hectares and a total of 75 samples were collected for gold analyses, of which 15 samples returned > 0.1 g/t Au and 3 returned > 1 g/t Au with a peak value of 2.72 g/t Au. Exploration work will continue on the Plomo property to support advanced exploration and an inaugural drill program.
Reyna Silver Corp., commenced a 3,000m drilling program at its Batopilas project in Chihuahua, to test targets generated over the past year following recognition of the overlapping gold and silver mineralizing events.
Prismo Metals Inc., commented that it is currently drilling at its Palos Verdes project in Sinaloa, where six holes have been completed for a total of 928m, mainly along the northeastern extension of the vein system and certain areas in the southwestern portion where previous drilling was performed.
Orex Minerals Inc., secured surface access and core storage facilities for exploration on its Sandra Silver-Gold project in Durango. Sandra Silver-Gold is a 60:40 JV between Pan American Silver Corp., and Orex.
ON MINING
Gatos Silver Inc., reported Q1, 2023 financial results for its Cerro Los Gatos mine in Chihuahua where it owns a 70% interest. The company reported a revenue of USD $69.9M; a cost of sales of USD $26M; a cash flow from operations of USD $40M; a net income of USD $12.7M; an EBIDTA of USD $39.6M; a free cash flow of USD $28.7M; and a by-product cash cost of USD $2.66 per payable Oz Ag and a by-product all-in sustaining cost of USD $6.11 per payable Oz Ag.
ON FINANCING
Golden Minerals Company entered into a definitive agreement for the purchase and sale of an aggregate of 1,427,587 shares of commons stock at a price of USD $1.45 per unit (USD $2.1M) in a registered direct offering. In a concurrent private placement, the Company will issue unregistered warrants to purchase up to 1,427,587 shares of common stock with an exercise price of $1.90 per share which will be exercisable six months from the date of issuance and for a period of five years following initial exercise date. The offering is expected to close on or about June 29, 2023, subject to the satisfaction of customary closing conditions. Later on, the company announced that it closed the registered direct offering obtaining the previously announced gross proceeds of USD $2.1M. Golden will use the net proceeds from the offering for working capital and other general corporate purposes (Rodeo mine, Durango).
Avino Silver & Gold Mines Ltd., renewed a new short form base shelf prospectus and a prospectus supplement in Canada, to pursuant to which Avino may distribute common shares from time to time pursuant to a sales agreement with Cantor Fitzgerald & Co., H.C. Wainwright & Co., LLC, Roth Capital Partners, LLC, and A.G.P./Alliance Global Partners, as agents or as principals, for the distribution of the Offered Shares in the United States up to the aggregate sales amount of USD $25M (Avino mine, Durango).
Endeavour Silver Corp., entered into a sales agreement with BMO Capital Markets Corp. (the lead agent), CIBC World Markets Inc., TD Securities (USA) LLC, H.C. Wainwright & Co., LLC, B. Riley Securities, Inc., Raymond James (USA) Ltd. and National Bank of Canada Financial, Inc., pursuant to which the Company may, at its discretion and from time-to-time during the 25 month term of the Sales Agreement, sell, through the Agents, such number of common shares of the Company as would result in aggregate gross proceeds to the Company of up to USD $60M. Gross proceeds will be used to fund the construction and development of the Company’s Terronera Mine, to advance the evaluation and development of the Pitarrilla and Parral properties, to assess potential development stage mineral properties for acquisition, to fund the potential acquisition of other development stage mineral properties, for continued exploration on the Company’s existing mineral properties and to add to the Company’s working capital.
Advance Lithium Corp., announced a non-brokered private placement of units at a price of $0.04 per unit. Each Unit shall be comprised of one common share in the capital of the Company and one common share purchase warrant with each warrant being exercisable to purchase one common share at a price of $0.05 per share at any time within 60 months of the date of issuance. The Financing will be for a maximum of $1M resulting in 21,250,000 units being issued. Part of the gross proceeds will be used to advance the Lithium and Sarape projects in Mexico and for general corporate purposes.
Aloro Mining Corp., stated that due to market conditions it will not be proceeding with the previously announced private placement dated on March 03, 2023. As announced by News Release on May 9, 2023, the Company closed a first tranche of the private placement for aggregate proceeds of $130K (Quitovac project, Sonora).
Heliostar Metals Ltd., announced a brokered private placement of up to 13,513,513 units of the company at a price of $0.37 per unit for gross proceeds of up to $5M, the same that later on was increased up to 14,324,324 units plus additional non-brokered private placement of 4,594,594 units for gross proceeds of up to $7M. Gross proceeds will be used to continue the exploration and development work at its Ana Paula project in Guerrero.
Luca Mining Corp., closed the third and final tranche of its previously announced private placement for gross proceeds of CAD $24,896,551 (Tahuehueto project, Durango).
Benjamin Hill Corp., announced that its previously announced non-brokered private placement Has been extended to allow the Company and its investors time to complete and deliver subscription agreements. All other terms of the Offering remain the same allowing for a maximum of 3,333,333 Units at a price of $0.12 per Unit for aggregate gross proceeds of approximately $400K (Sonora Gold project, Sonora).
Colibri Resources Corporation declared that it intends to conduct a non-brokered private placement of up to 1,000 for gross proceeds of up to USD $1M. Each Unit will consist of one (1) USD $1,000 principal amount 10% unsecured convertible debenture, and 5,416 common share purchase warrants. Each Warrant will entitle the holder to acquire one common share of the Corporation at a price of CAD $0.12 per common share for a period of 24 months following the closing of this offering. Net proceeds will be used for working capital and exploration expenses including drilling on the Evelyn/Plomo and Diamante/El Mezquite/Jackie projects.
ON RESOURCES AND DEVELOPMENT
Southern Silver Exploration Corp., reported that metallurgical scoping tests confirm the technical feasibility of recovering both free cyanide-leachable gold and refractory gold from pyritic material through a process of fine grinding and hot atmospheric pressure oxidation followed by cyanide leaching. “Both sulphide and oxide composites were tested as part of the metallurgical program. Mass balance reconciliations on the sulphide composite testwork indicate that 50% of the total gold is recoverable by hot atmospheric pressure oxidation prior to cyanide leaching at an overall 83.9% recovery. An additional 21.5% of gold is recovered into a copper concentrate at payable grades for a total of 71.5% recovery of gold”. It will de-risk and increase the value of the Cerro Las Minitas project in Durango.
Minaurum Gold Inc., extended the Environmental Impact Statement (MIA) for the development of its Alamos Silver project in Sonora, which includes the construction of drill pads, clean-up of preexisting roads, and the rehabilitation and reactivation of historical underground mine workings.
Guanajuato Silver Company Ltd., provided an updated PEA for its El Cubo Mine Complex in Guanajuato. The upgraded Mineral Resource Estimate (MRE) for El Cubo Mine Complex and financial parameters are shown in the next tables respectively:
Luca Mining Corp., hit 500 tonnes per day milestone at its Tahuehueto project in Durango on schedule and budget, but the focus is on towards the ultimate goal of commercial production at 1,000 tonnes per day by year-end.
GoGold Resources Inc., filed a National Instrument 43-101 Preliminary Economic Assessment (PEA) technical report for its Los Ricos North project in Jalisco. The table below shows the Mineral Resource Estimate as of May 17, 2023:
Highlights of the PEA, with a base case silver price of USD $23/Oz and gold price of USD $1,800/Oz include an after-tax NPV at a discount rate of 5% of USD $413M with an after-tax IRR of 29%; a 13-year mine life producing a total of 110.3M payable Oz AgEq consisting of 68M Oz Ag, 221.7K Oz Au, 22.8M Lb Cu, 144.1M Lb Pb, and 242.2M Lb Zn; an initial capital cost of USD $221M, including USD $29M in contingency costs, over an expected 18 months build; an additional expansion capital of USD $137M, and sustain capital cost of USD $6M over the life of mine (LOM); an average LOM operating cash costs of USD $9.50 per Oz AgEq, and all in sustaining costs of USD $9.69 per Oz AgEq; and average annual production of 8.8M Oz AgEq in year one through twelve; and approximately 3/4 of LOM production is from four open pits containing oxide mineralization and approximately 1/4 is from a separate open pit which contains only sulphide mineralization.
ON DEALS AND CORPORATE ISSUES
Bear Creek Mining Corporation granted incentive stock option to its recently promoted President and CEO. The Stock Options will vest periodically in accordance with the 2022 Plan and may be exercised on or before June 26, 2033 at an exercise price of CAD $0.45 per share, being the closing price of the Company’s shares on the TSX Venture exchange on June 23, 2023. (Mercedes Mine, Sonora).
Mag Silver Corp., Almaden Minerals Ltd., Sierra Metals Inc., Goldgroup Mining Inc., Aztec Minerals Corp., and Guanajuato Silver Company Ltd., reported results from its annual general and special meeting of shareholders (Juanicipio mine, Zacatecas).
Goldgroup Mining Inc., issued a press release to clarify and retract certain disclosures with respect to the Company’s Cerro Prieto and San Jose de Gracia projects in Sonora and Sinaloa respectively. “The Company would like to clarify that the mining key performance indicators in the Company’s Management’s Discussion and Analysis for the period ended September 30, 2022, year ended December 31, 2022 and period ended March 31, 2023 under the heading Financial And Operational Highlights have not been reviewed by the Company’s qualified person as stated and should not be relied upon. The Company is in the process of reviewing its internal procedures regarding qualified person requirements to ensure all future required disclosure are appropriately reviewed by a qualified person. In addition, the disclosure in the 2022 Annual Information Form (AIF) has triggered the requirement to file a technical report for the projects under s.4.2 (1)(f) of NI 43-101 and the Company would like to state that information in the 2022 AIF is not supported by a compliant NI 43-101 technical report, contrary to NI 43-101, and that the information should not be relied on until it has been verified and supported by a technical report”.
Canasil Resources Inc., announced that the British Columbia Securities Commission revoked the temporary management cease trade order issued against certain insiders of the company on May 03, 2023 (Nora project, Durango).
Gatos Silver Inc., provided a bi-weekly default status report in accordance with National Policy (NP) 12-203- Management Cease Trade Order (MCTO). “Pursuant to NP 12-203, the Company must file bi-weekly status reports in the form of further news releases during the period from the Notice until the MCTO is revoked. The Company reports that since the Notice: (i) there have been no material changes regarding the information contained in the Notice that have not been disclosed in a bi-weekly default status report or in a news release referenced therein; (ii) there have been no failures by the Company in fulfilling its stated intentions with respect to satisfying the provisions of the alternative information guidelines under NP 12-203; and (iii) there has not been any specified default subsequent to the defaults announced in the Notice and the news releases dated May 13, 2022, August 5, 2022, November 11, 2022, March 30, 2023 and May 15, 2023” (Cerro Los Gatos Mine, Chihuahua).
Tarachi Gold Corp., after a thorough review of the mineral concessions owned by Exploradora Cobre de Bacanora S de R.L. de C.V., has decided to discontinue the option agreement for the properties located in Sonora. Tarachi is evaluating new precious metal opportunities in North America and has reduced its ongoing overhead costs to conserve its significant cash assets during this review process (Magistral Mill & Tailings project, Durango).
ON SOCIAL RESPONSIBILITY
Industrias Peñoles S.A.B. de C.V., and Fresnillo plc, Mexican mining companies of Grupo BAL, in favor of reforestation. Both in the operation of their mining units and in their neighboring communities have implemented sustainability programs through which they encourage all people to join in caring for the flora. All the group’s operating units are located outside protected natural areas or areas of value for biodiversity and have reforestation programs and nurseries, where endemic species of the regions where they operate are cultivated.
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, phyllic alteration (quartz-sericite-pyrite) in a project in Jalisco, Mexico. Photo by Miguel A Heredia.
