Three companies released drilling assays from properties in Mexico during the week. Vizsla Silver’s results from the Panuco project, in Sinaloa, returned the highest gold and silver intercepts from the low to intermediate sulfidation epithermal mineralization in the veins of the district.
Other project with low to intermediate sulfidation epithermal mineralization with significant results is Santo Domingo Hostotipaquillo, in Jalisco. Stroud Resources presented the results from drilling during 2021 and 2022, of which the most relevant results, from the not previously released 2022 campaign, are in the table below. The project is adjacent to and part of the same mineralizing system present at GoGold’s Los Ricos South project.
Santo Tomás is a porphyry copper project in northern Sinaloa, not far from the border with Sonora and Chihuahua. The long copper intercepts by Oroco Resources are from the North Zone.
During the 17th week of the year (April 24th to April 30th, 2023), 17 companies working in Mexico released news on their work. Five companies informed on exploration on their properties, six companies informed on Q1 2023 or full-year 2023 production/financial results. Two companies announced the closing and opening of financing rounds. A company corrected assay information on a previously issued drill intercept; one other provided an update on its intention to sue the Mexican government under a NAFTA legacy claim regarding the lack of action to terminate an illegal blockade. ON MEXICO ISSUES, Canada’s ministry of International Commerce, Mary Ng, expressed the preoccupation of foreign investors on the incoming changes to the Mining Law. The Mining Law was passed on Saturday morning by the Senate, and is set to return discretionary powers to the State on mining concessions. ON EXPLORATION, in Sonora, Prismo Metals released assays from surface sampling at its Los Pavitos property; Regency Silver released good results from deep drilling at its Dios Padre project; Colibri Resource released results from drilling at Evelyn project. In Zacatecas, Radius Gold updated on exploration work at the Tropico property. ON MINING, Sierra Metals, Mag Silver, Santacruz Silver, Alamos Gold, Pan American Silver and Agnico Eagle released Q1 2023 production reports. ON FINANCING, Silver Viper closed a private placement for $3.3 M; Radius Gold is to raise $1.75 M. ON RESOURCES AND DEVELOPMENT, Oroco Resource corrected assay results from one hole, previously issued last week, from its Santo Tomás project in Sinaloa. ON DEALS AND CORPORATE ISSUES, Guanajuato Silver informed on managerial changes. Silver Bull is to sue the Mexican government if a deal is not reached on an incoming meeting regarding the lack of action by the government to terminate an illegal blockade on its Sierra Mojada project in Coahuila. Prismo Metals and Vizsla Silver formalized the joint technical committee to oversee exploration of the Panuco district in Sinaloa, with Peter Megaw, Craig Gibson and Jesus Velador as members. ON SOCIAL RESPONSIBILITY, no relevant news.
ON MEXICO ISSUES
The ministry of International Commerce of Canada, Mary Ng, expressed to Raquel Buenrostro, head of the Economy Secretariat (Secretaría de Economía) the preoccupation of foreign investors on the changes to the Mining Law, and the negative implications on North America supply chains.
The Senate Commission on Regional Development and Legislative Studies approved without changes, by the ruling party coalition senators of Morena, PT, PVEM and PES parties, the reforms to the Mining Law, National Waters Law, Ecologic Equilibrium Law, Environment Law, and the General Law for prevention and Comprehensive Treatment of Tailings in Matter of Mining and Water Concessions. Among the changes is the reduction of mining concessions validity from 100 to 80 years (under certain conditions), the instauration of an auction system by the government for mining concessions, establishing that the concession title is to be issued AFTER the environmental, labor, energy, social and any other federal permit needed have been received (Note by Editor. – Speaking of putting the cart before the horse).
On the changes to the Mining Law. (Note by editor) The reform to the Mining Law is directed to regain quasi absolute control of mining concessions by the government, establishing rules under which the concessions can be revoked on grounds of indigenous population, community issues, environmental issues and water scarcity, all on which the government plays the role of judge and party. This is part of a broader drive by the president to concentrate power in himself and his government coalition before the 2024 presidential elections.
ON EXPLORATION
Prismo Metals Inc. released assays results from 354 surface samples on its 5,289 hectare Los Pavitos project in Sonora. Results from Las Auras are up to 0.5 m @ 14.35 gpt Au, 1.0 m @ 12.25 gpt Au, while at Santa Cruz assays are up to 0.5 m @ 5.48 gpt Au, 269 gpt Ag; 1.5 m @ 1.0 gpt Au, 543 gpt Ag. “Las Auras is characterized by northwest trending veins and shears hosted in intrusions, while Santa Cruz is dominated by northeast trending veins that follow sedimentary bedding”. Drilling is expected to begin in Q2 2023.
Regency Silver Corp. released results from two follow-up holes from the last drilling round discovery at the Dios Padre project in Sonora. Seven holes have been completed for a total of 4,251 m, of which six have intersected the targeted “pyrite +/- specularite +/- chalcopyrite supported breccia zone that hosts Au-Cu mineralization”. Highlighted core length intercepts comprise 18.15 m @ 0.24 gpt Au; 8.3 m @ 0.62 gpt Au; 19.25 m @ 0.19 gpt Au; 16.2 m @ 0.39 gpt Au; 20.65 m @ 0.51 gpt Au (including 9.2 m @ 1.06 gpt Au); 35.9 m @ 5.51 gpt Au; 128.35 m @ 0.84 gpt Au (including 21.3 m @ 0.54 gpt Au and 57.95 m @ 1.49 gpt Au), and 95.5 m @ 0.2% Cu; 34.35 m @ 0.42% Cu (including 12.05 m @ 0.98% Cu); 25.4 m @ 0.43% Cu; 23.9 m @ 0.19% Cu; and 15.1 m @ 19.2 gpt Ag. “Geophysical Induced-Polarity (IP) survey confirms robust anomaly connecting near surface response from Dios Padre silver mine down-dip to current Au-Cu mineralization being targeted in ongoing drill program, outlining a ~1000m long by ~900 m wide zone of strongly chargeable rock”.
Prismo Metals Inc. signed a contract for a 2,500 m drilling program at its Palos Verdes project in the Panuco District in Sinaloa. “The drill program is designed to test the 65% of the strike length of the Palos Verdes vein that has not yet been drilled. It is believed that potential for a large ore shoot is present similar to the drilling accomplished by Vizsla Silver on their adjacent land package is present on Prismo’s concession. Previous drilling has intersected high grade mineralization with the best intercept of 2,336 g/t Ag and 8.42 g/t Au over a true width estimated at 0.8 meters within a larger mineralized interval with 1,098 g/t Ag and 3.75 g/t Au over a true width of 2.3 meters”.
Radius Gold Inc. provided an update on the Tropico target in Zacatecas. “Radius geologists identified an elliptical zone of intensely silicified hydrothermal breccias approximately 450 m x 250 m. Several of the outcrops and float blocks are composed of chalcedonic and opaline sinter. The Tropico breccia is hosted within finely bedded siltstones and dirty limestones …”. Radius has an access agreement with the local community and land owners, has completed the geological mapping, contracted CSAMAT and IP geophysical surveys and is preparing for drilling upon receipt of the permits.
Colibri Resource Corp. provided assays results from 1,062 m of core drilling in three holes and 1,205 m of reverse circulation drilling in five holes at its Evelyn project in Sonora. Highlighted core length intervals comprise 34.70 m @ 0.28 gpt Au (including 5.65 m @ 1.00 gpt Au); 4.50 m @ 0.34 gpt Au, 4.05 m @ 1.52 gpt Au (including 0.75 m @ 7.54 gpt Au). Highlighted RC intervals comprise 29.00 m @ 0.47 gpt Au (including 2.00 m @ 3.35 gpt Au and 6.00 m @ 0.97 gpt Au); 15.00 m @ 0.18 gpt Au; 20.00 m @ 0.11 gpt Au; 2.00 m @ 1.85 gpt Au; 10.00 m @ 0.47 gpt Au (including 2.0 m @ 1.10 gpt Au and 2.0 m @ 1.04 gpt Au). Colibri also released results from a “short hole” drilling program designed to explore under extensive alluvial cover, completing 1,548 m in 130 vertical holes at 25 m centers. Of the 954 samples (1 m width) recovered, 20% returned greater than 0.05 gpt Au, 11% greater than 0.1 gpt Au and 4 samples returned more than 0.7 gpt Au, peaking at 3.31 gpt Au.
ON MINING
Sierra Metals Inc. announced first quarter 2023 production results, including figures from its operations in Mexico. At Bolivar, in Chihuahua, 299 K tonnes were processed at a rate of 3,417 tonnes per day (tpd), grading 0.87% Cu, 17.4 gpt Ag, 0.45 gpt Au, recovering 94.2% Cu, 84% Ag, 69.5% Au, to produce 5.39 M Lb Cu, 140 K Oz Ag, 3,037 Oz Au (7.6 M Lb CuEq). At Cusi (a non-core asset), in Chihuahua, 59.1 K tonnes were processed at a daily rate of 676 tpd, grading 141.8 gpt Ag, 0.13 gpt Au, 0.24% Pb, recovering 86.3% Ag, 46.6% Au, 88.7% Pb, to produce 343 K Oz Ag, 119 Oz Au, 282 K Lb Pb.
Mag Silver Corp. reported production from the Juanicipio project (56% Fresnillo PLC– 44% Mag Silver) for Q1 2023. During the period 222 K tonnes grading 363 gpt Ag were processed to produce 2.25 M Oz Ag, 6,047 Oz Au. About 30% of that ore was processed at the Juanicipio beneficiation plant and the focus now is to attain the 4,000 tpd nameplate capacity on a sustained basis and achieve commercial production.
Santacruz Silver Mining Ltd. reported full year 2022 production, with figures on its Mexican operations. At Zimapan, in Hidalgo, 215 K tonnes were milled averaging 71 gpt Ag, 2.19% Zn, 0.63% Pb, 0.40% Cu, recovering 61.5% Ag to produce 301.2 K Oz Ag, 3,098 tonnes Cu, 1,036 tonnes Pb, 569 tonnes Cu (903.1 K Oz AgEq). The company had a consolidated production of 4.77 Moz AgEq. “Mine development was focused on opening higher grade stoping areas in Carrizal mine along with high productivity areas in Monte mine. Exploration efforts have been refocused to expand current mine resources”.
Alamos Gold Inc. reported its financial results for Q1 2023, including figures from its operations in Mexico. At the Mulatos district in Sonora 50,500 Oz Au were produced at cash cost $839 per Oz Au and mine-site all-in sustaining cost of $914 per Oz Au. At La Yaqui Grande mine, 1.0 M tonnes of ore were mined, 5.83 M tonnes of waste moved (waste to ore ratio of 5.64), with 1.02 M tonnes stacked averaging 1.55 gpt Au, containing 50,992 Oz Au, crushed at 11,329 tpd, with a recovery of 75% Au. At the Mulatos mine, 1.0 M tonnes of ore were mined, 0.61 M tonnes of waste moved (waste to ore ratio of 0.61), with 1.23 M tonnes stacked averaging 0.92 gpt Au, containing 36,541 Oz Au, crushed at 13,700 tpd, with a recovery of 33%. For 2023 the company expects to produce between 175-185 K Oz Au at cash cost $900 – $950 per Oz Au.
Pan American Silver Corp. provided its guidance for year 2023 production and costs, including figures for its Mexican operations. At La Colorada, in Zacatecas, the company expects to produce 5.5 – 5.9 M Oz Ag, 3,000 Oz Au. At Dolores, in Chihuahua, production is estimated at 2.2 – 2.5 M Oz Ag, 98,000 – 107,000 Oz Au.
Agnico Eagle Mines Ltd. reported first quarter 2023 results, including figures from its Mexican operations. At Pinos Altos, in Chihuahua, 364 K tonnes were processed at a daily rate of 4,044 tonnes, averaging 2.16 gpt Au, to produce 24,134 Oz Au at cash cost 1,364 per Oz Au and total cash cost of $1,116 per Oz Au. At La India, in Sonora, 660 K tonnes were processed at a daily rate of 7,333 tonnes, averaging 0.68 gpt Au, to produce 16,321 Oz Au at production cost of $1,231 per Oz Au and total cash costs of $1,308 per Oz Au. At San Nicolás, in Zacatecas, the 50/50 joint venture with Teck Resources Ltd. was completed, and the completion of a feasibility study is planned for 2024.
ON FINANCING
Silver Viper Minerals Corp. closed the final tranche of its non brokered private placement for gross proceeds of $1.92 M. In total the company raised $3.3 M. Silver Viper is to pay $123.8 K in finder’s fees in connection with this offering, in addition to $40 K paid as finder’s fee on previous tranches. (La Virginia, Sonora).
Radius Gold Inc. is to proceed with a non-brokered private placement aiming to rise a minimum of $1.75 M (Amalia, Chihuahua).
ON RESOURCES AND DEVELOPMENT
Oroco Resources Corp. announced a correction to the assay results from one drillhole released last week from its Santo Tomás project in Sinaloa. The corrected results from hole N044 went from 352.5 m grading 0.83% Cu, 0.011% Mo, 0.072 gpt Au, 6.26 gpt Ag (0.93% CuEq), to 352.5 m grading 0.42% Cu, 0.006% Mo, 0.036 gpt Au, 3.13 gpt Ag (0.46% CuEq), roughly half the previously reported values.
ON DEALS AND CORPORATE ISSUES
Guanajuato Silver Company Ltd. announced Hernan Dorado Smith will take the position of Chief Strategy Officer and Mario Valdez has been promoted to Co-Chief Operating Officer, sharing the position of COO with Ramon Davila (El Cubo, Guanajuato).
Silver Bull Resources Inc. provided an update regarding its legacy North American Free Trade Agreement (NAFTA) claim against Mexico. The company seeks to recover economic damages resulting from the illegal blockade of its Sierra Mojada project in Coahuila since September 2019. The illegal blockade has been allowed by the government to continue, despite numerous demands and requests by the company. Silver Bull will be seeking to recover no less than US178 M in damages suffered as a result of Mexico’s breach of NAFTA obligations. A meeting with government officials is scheduled on May 30, 2023 to reach, if possible, an amicable solution. If a settlement is not reached, a request for arbitration will be filed on June 2, 2023 with the International Centre for Settlement of Investment Disputes.
Prismo Metals Inc. and Vizsla Silver Corp. formalized the establishment of a joint technical committee which will allow for the pursuit of district-scale exploration of the Panuco district in Sinaloa. The committee is to be comprised by Dr. Craig Gibson, President and CEO of Prismo, Jesus Velador, Vice President Exploration of Vizsla and Dr. Peter Megaw, Chief Operating Officer of Mag Silver Corp.
ON SOCIAL RESPONSIBILITY
No Relevant News.
On the image below: Sheeted quartz veining on a coarse-grained intrusive rock in the Sonoran Desert. Picture by Jorge Cirett.
Regency Silver’s drilling results from from holes at its Dios Padre project in Sonora returned some excellent gold grades and good copper over long intervals. The intercepts are on sulfide bearing breccias that are common in the Santa Rosa de Yecora district in Sonora. The breccias are complex, present in many shapes and developed in the intrusive rocks, or more commonly, in the contact with the hosting intermediate volcanic rocks package. Other breccias in the district host copper-molybdenum, gold or silver resources, and at least in one property gold is being currently mined.
The Evelyin project is also in Sonora and is being explored by Colibri Resource. Gold mineralization is of orogenic style, and the company has been drilling several targets with a strong structural component, as is usual in this type of deposits. Undercover mineralization is being pursued also by drilling short holes to bedrock on the extensive cover present in the area.
Oroco Resource presented a corrected set of results for one hole from its Santo Tomás porphyry copper project in Sinaloa, previously released last week.
During the 15th week of the year (April 10th to April 16th, 2023), 16 companies working in Mexico released news on their properties. One company informed on exploration at one of its properties, eight companies informed on Q1 2023 production results. One company closed a financing placement while a company opened another one. A company informed on the advance to take a property into production, one other reported drilling results at its main project. One company is exercising its option to acquire a property, while one other is extending the option on an exclusivity agreement. ON MEXICO ISSUES, calls for dialog with Congress are being made with urgency on the merits and negative implications of the proposed changes to the Mining Law. The federal government qualified Vulcan Minerals compensatory demand as unfounded. ON EXPLORATION, in Sonora, Tocvan Ventures provided results from a leach test at its Pilar property. ON MINING, Endeavour Silver, Guanajuato Silver Company, Fortuna Silver, Torex Gold, Gold Resource, Gatos Silver, Orla Mining and Bear Creek Mining released Q1 2023 production reports. ON FINANCING, Monumental Minerals and Excellon Resources announced the closing ($2.2 M) and opening (up to C$10 M) of financing rounds, respectively. ON RESOURCES AND DEVELOPMENT, Minera Alamos advances on the permitting process for mining at Cerro de Oro in Zacatecas. Vizsla Silver reported drilling results from its Panuco property in Sinaloa. ON DEALS AND CORPORATE ISSUES, Silver Dollar is exercising its option to acquire 100% interest on La Joya property in Durango. Radius Gold extended the exclusivity agreement term with Fresnillo PLC on its Plata Verde Project in Chihuahua. ON SOCIAL RESPONSIBILITY, no relevant news.
ON MEXICO ISSUES
On the proposed changes to the Mining Law. For the last two weeks there have been many declarations by mining industry members and representatives against many of the proposed changes. There is a widespread movement calling for open discussions of the many elements on this proposal that are to pose a grave threat to foreign and local investment on the industry, affecting a large population base and increased deleterious effects in the economy on the long run. The AIMMGM (Asociación de Ingenieros Mineros, Metalurgistas y Geólogos de México) is asking Congress to organize an open parliament on the subject to discuss the merits and negative implications of the proposed changes.
The Mexican federal government qualified Vulcan Minerals $1.9 billion compensatory demand as unfounded on its reply to Centro Internacional de Arreglo de Diferencias Relativas a Inversiones courtroom. Vulcan has been quarrying limestone in Quintana Roo for more than 30 years, and has been pointed by the government as the culprit of an ecological disaster.
Mexico’s Best Drilling intercepts on Q1 2023
ON EXPLORATION
Tocvan Ventures Corp. provided the results from a leach study from its Pilar property in Sonora. According to the results, 95 to 99% Au, 73 to 97% Ag can be recovered using “gravity concentration followed by agitated cyanide leach of the gravity tails”.
ON MINING
Endeavour Silver Corp. reported first quarter 2023 production of 1.62 M Oz Ag 9,342 Oz Au (or 9,342 Oz AgEq. At Guanaceví, in Durango, 102.4 K tonnes were milled at a rate of 1,138 tonnes per day (tpd), averaging 511 gpt Ag, 1.42 gpt Au, recovering 85.6% Ag, 89.6% Au, to produce 1.44 M Oz Ag, 4,188 Oz Au. At Bolañitos, in Guanajuato, 109.7 K tonnes were milled at a rate of 1,208 tpd, averaging 61 gpt Ag, 1.70 gpt Au, recovering 86.1% Ag, 86.8% Au, to produce 183.6 K Oz Ag, 5,154 Oz Au.
Guanajuato Silver Company Ltd. announced consolidated production results for the year 2022. Production from El Cubo mines complex, Valenciana mines complex and San Ignacio mine in Guanajuato involved 410.3 K tonnes mined, 418.8 tonnes milled, recovering 86.0% Ag, 84.5% Au, 88.7% Pb, 84.5% Zn, to produce 1 M Oz Ag, 11,174 Oz Au, 1.3 M Lb Pb, 1.9 M Lb Zn, or 2.13 M Oz AgEq, at cash cost $15.84 per Oz AgEq and AISC of $21.55 per Oz AgEq. At the end of 2022 the company had cash and cash equivalents of $8.8 M and $1.7 M of working capital.
Fortuna Silver Mines Inc. reported production results for the first quarter of 2023, including figures from its operations in Mexico. During the period the San Jose mine in Oaxaca produced 1.3 M Oz Ag, 8,231 Oz Au.
Torex Gold Resources Inc. reported Q1 2023 production from its El Limon-Guajes operations in Guerrero. During the period 10.2 K tonnes of ore per day (tpd) were mined from open pits, 93.7 K tpd of waste moved (waste to ore strip ratio of 9.2) and 1,738 tpd of ore were mined from underground for a total of 13,703 tpd processed at a grade of 3.50 gpt Au, recovering 87.8% Au to produce 122,918 Oz Au. “… the Company made over $75 million in tax payments including the annual payment of the 7.5% mining tax, corporate tax instalments, and true-up of taxes outstanding at the end of 2022”.
Gold Resource Corp. released production results from its Don David mine in Oaxaca in Q1 2023. During the period 117.8 K tonnes were milled at a rate of 1,420 tonnes per day, averaging 2.33 gpt Au, 94 gpt Ag, 0.37% Cu, 1.7% Pb, 3.9% Zn, to produce 7,171 Oz Au, 322.7 K Oz Ag, 336 tonnes Cu, 1,559 tonnes Pb, 3,837 tonnes Zn.
Gatos Silver Inc. announced production results for first quarter 2023 at its Cerro Los Gatos property in Chihuahua. During the period 260.4 K tonnes were milled at a rate of 2,894 tpd, averaging 329 gpt Ag, 3.93% Zn, 1.86% Pb, 0.30 gpt Au, recovering 88.3% Ag, 62.2% Zn, 88.6% Pb, 55.3% Au, to produce 2.43 M Oz Ag, 14.0 M Lb Zn, 9.5 M Lb Pb, 1,380 Oz Au. “… silver production is expected to be higher in the first half of 2023 than in the second half of 2023 based on sequencing of the mine plan. Zinc and lead production are expected to be higher in the second half of the year than in the first half.
Orla Mining Ltd. provided an interim operation update for Q1 2023. At the Camino Rojo Oxide mine in Zacatecas, during the period the company mined 3.13 M tonnes (waste to ore ratio 0.61) of which 1.18 M was moved waste, 1.65 M tonnes ore averaging 0.72 gpt Au and 0.30 M tonnes of low-grade ore averaging 0.29 gpt Au for stockpiling. Ore stacked was 1.77 M tonnes @ 0.80 gpt Au, to produce 25,910 Oz Au.
Bear Creek Mining Corp. announced production results for the first quarter of 2023. During the period 133.6 K tonnes were mined at its Mercedes mine in Sonora, 134.5 K tonnes milled, at a grade of 2.91 gpt Au, recovering 95.56% Au, to produce 12,025 Oz Au, 40.1 K Oz Ag. “Mercedes mine planning and development began the shift toward higher-grade deposits that utilize cut and fill mining methods during Q1 2023…”.
ON FINANCING
Monumental Minerals Corp. closed a non brokered private placement for gross proceeds of $2.2 M. The company paid aggregate finder’s fees of $110.3 K plus warrants (Jemi, Coahuila).
Excellon Resources Inc. announced a non-brokered private placement for aggregate gross proceeds of up to C$10 M. “… the net proceeds of the Offering are expected to be used to advance development of La Negra, fund exploration at La Negra and for general corporate purposes “(La Negra, Hidalgo).
ON RESOURCES AND DEVELOPMENT
Minera Alamos Inc. completed the necessary documentation to proceed with its Cerro de Oro project in Zacatecas permitting process. The company expects to conclude negotiations on a lending package for construction once the permits are received.
Vizsla Silver Corp. reported results from six holes at the southern extension of the Napoleon vein at its Panuco project in Sinaloa. Highlighted true width intercepts comprise 4.00 m[JC1] @ 590 gpt Ag, 5.15 gpt Au, 1.0% Pb , 4.4% Zn (including 0.98 m @ 2,025 gpt Ag, 15.74 gpt Au,, 1.7% Pb, 5.2% Zn); 6.10 m @ 156 gpt Ag, 3.63 gpt Au, 7.9% Pb, 6.6% Zn; 5[JC2] .00 m @ 99 gpt Ag, 1.44 gpt Au, 1.2% Pb, 5.1% Zn; 1.70 m @ 268 gpt Ag, 1.41 gpt Au, 0.2% Pb, 0.3% Zn; 3.05 m @ 157 gpt Ag, 2.55 gpt Au, 0.8% Pb, 5.1% Zn; 1.00 m @ 532 gpt Ag, 8.96 gpt Au, 1.5% Pb, 7.1% Zn; 10.65 m @ 54 gpt Ag, 0.93 gpt Au, 0.2% Pb, 0.8% Zn.
ON DEALS AND CORPORATE ISSUES
Silver Dollar Resources Inc. delivered a notice to First Majestic Silver Corp. exercising its option to acquire a 100% interest in La Joya property in Durango.
Radius Gold Inc. extend the term of the exclusivity agreement with Fresnillo PLC on its Plata Verde project in Chihuahua. The term of the agreement has been extended three months, implying Fresnillo is to cover US$157 K in payments to the underlying concession owners and landowners, while maintaining the commencement of drilling before 7 July 2023.
ON SOCIAL RESPONSIBILITY
No Relevant News.
On the image below: Quartz veined coarse grain intrusive rock in the Sonoran Desert. Picture by Jorge Cirett. Picture by Jorge Cirett.
During the week only Vizsla Silver reported drilling results from its Panuco project in Sinaloa. The intercepts reported come from exploration of the southern part of the Napoleon vein system. The mineralization encountered is part of a structurally controlled intermediate sulfidation epithermal system.
Several companies reported really good silver intercepts from their properties in Mexico, with GoGold’s topping the chart with a whopping 55.0 m averaging 2,153 gpt Ag (69 Oz Ag per tonne), or 118,399 gpt*m, including 2.0 m @ 52,765 gpt Ag (1,695 Oz Ag per tonne, or 5.28% Ag) from its Los Ricos South project in Jalisco. Other companies commonly posting results over 5,000 gpt*m silver (160 Oz Ag per tonne) include Silver Tiger results fro El Tigre in Sonora (up to 22,564 gpt*m Ag), Vizsla’s results from Panuco in Sinaloa (up to 17,130 gpt*m Ag), GR Silver’s results from San Marcial in Sinaloa (up to 10,007 gpt*m Ag) and GoGold’s results from Los Ricos North in Jalisco (up to 7,801 gpt *m Ag).
With the exception of Media Luna, which is a skarn system, and Cordero, a complex intrusive/skarn/intermediate sulfidation epithermal deposit, the silver mineralization is set in structurally controlled intermediate to low sulfidation epithermal systems.
During the 13th week of the year (March 27th to April 2nd, 2023), 18 companies working in Mexico released news on their properties. Two companies informed on exploration on their properties, three companies informed on Q4 and year 2022 financial and operational results. Two companies closed partial or complete share placements. Two companies filed technical reports on their properties, two more released drilling results on their advanced properties and two more updated mineral resource estimates for their properties. Two companies announced the completion of the acquisition process on mining projects. ON MEXICO ISSUES, the Mexican president sent an initiative to change the Mining Law that is likely to strongly impact the mineral exploration industry. ON EXPLORATION, In Sonora, Tocvan Ventures provided an update on bulk sampling at its Pilar property; Reyna Gold is to drill its La Gloria project. ON MINING, Mag Silver, Sierra Metals and Avino Silver released Q4 2022 financial reports. ON FINANCING, Silver Spruce closed a private placement for $1.13 M, Golden Tag closed the first tranche of a non-brokered private placement. ON RESOURCES AND DEVELOPMENT, Alamos Gold and Sonoro Gold filed NI-43-101 technical reports on the Mulatos and Cerro Caliche properties respectively, both in Sonora. GoGold Resources released drilling results from Los Ricos South project in Jalisco. Oroco Resource informed on drilling at the Santo Tomás project in Sinaloa. Argonaut Gold updated on mineral resources at five of its properties in Mexico. Aura Minerals reported on mineral reserves and resources at Aranzazu, in Zacatecas. ON DEALS AND CORPORATE ISSUES, Argonaut Gold completed the sale of the Ana Paula project in Guerrero to Heliostar Metals. Sierra Metals completed the acquisition of La Guitarra project, in Estado de Mexico, from First Majestic Silver. ON SOCIAL RESPONSIBILITY, no relevant news.
ON MEXICO ISSUES
The president of México, Andrés M. López Obrador sent to Congress an initiative to reform the Mining Law, National Water Law, Ecological Equilibrium Law and Environmental Protection and the General Law for Prevention and Integral Management of Residues relating to Mining and Water Concessions. The initiative displays a heavy ideological charge on the exposition of motifs, full of propaganda epithets against the “neoliberal” current state of affairs on these matters. Any good specific proposal within the initiative is overwhelmed by the sheer amount of new rules designed for the State to have a firm grip on the industry, many of which involve granting the government power to decide when to take away a concession on flimsy grounds, raising the uncertainty level for mining investment in Mexico. Some takeaway points that drastically change how the mining industry is operating in Mexico include: The government is to perform auctions for mining concessions (no more staking). Mining activities are no longer considered to have priority over other land uses. No land expropriation on mining grounds. Social impact studies to be conducted before any exploration takes place. Public consultations with “towns”, indigenous (which by the way are auto ascribed) and afro-Mexican communities. Reduction of mining concessions rights from 50 to 15 years, that could be renewed only once (more than a few operations in Mexico have been continuous for far longer periods). Mining concessions are conditioned to water “availability” (yes, the government decides, unconstrained, when there is available water, anytime). No private transmission of mining concessions without government consent (again, absolute power to the government). Added cancellation causes include lack of report in possible harm or risks to ecological equilibrium, lack of permits, concessions or authorizations from other authorities and lack of closing programs or management of residues. The only way to obtain a concession is to be by government auction (Concurso). Limits mining concessions coverage to only one element (you have to wonder on the genius that came with this proposal). The list continues, but in a first pass reading those above come as the most likely to cause an exodus of investment in mining exploration in Mexico. Mines are to continue operating, and advanced properties are likely to continue to development, but the Mexican exploration industry is about to halt when this initiative is approved, as the government has the required number of votes secured in Congress. Dialogue between industry entities and the government should take place before this initiative is voted, because better alternatives should be sought in order to achieve a better operating mining industry. Alternative options agreed upon should both improve the effect of mining operations in communities and the environment while promoting investment, thus helping Mexico’s development as a whole.
ON EXPLORATION
Tocvan Ventures Corp. provided a progress update on the first bulk sample at the Pilar project in Sonora. Over 1,200 tonnes of material have been stockpiled with the first shipments completed. Four head-grade samples averaged 6.2, 7.6, 1.3 and 7.6 gpt Au. “Diagnostic leach tests are ongoing and were collected from four trench areas and one select drill core coarse reject sample. Preliminary results from the study suggest free gold is present in the samples and has been confirmed visually by testing sieved…. Up to 1,000 tonnes of oxide-gold material will be extracted from select areas….. The information provided from the sample will be used for planning in coordination for permitting of full-scale mine and process facilities on-site at Pilar”.
Reyna Gold Corp. announced the mobilization to recommence a minimum of 5,500 m of diamond drilling at its 24,215 ha La Gloria property in Sonora. The program is focused on four targets: La Republicana, Western, Las Carmelitas and Main Zone. At La Republicana drilling “will test extensions to the La Republicana Main Vein, which produced 59.00m of 1.45 g/t Gold in Phase 1 drilling”, on the 1 km long vein with significant anomalies delineated by an induced polarization survey. At Western, abundant quartz veining with Au-Te high-grades are to be tested. At Las Carmelitas high Cu, Ag, Sb assays have been obtained in a large conglomerate/agglomerate system. At the Main Zone, follow-up is to test on phase-1 drilling that returned 5.5 m @ 935 gpt Ag; 7.85 m @ 3.94 gpt Au; 30.60 m @ 0.51 gpt Au.
ON MINING
Mag Silver Corp. announced consolidated financial results for 2022. Commissioning of the Juanicipio plant in Zacatecas commenced in early January 2023, after the entire system was connected to the national power grid in late December 2022. During the year 646.1 K tonnes were processed thorough the Fresnillo and Saucito plants, producing 8.7 M Oz Ag, 20,268 Oz Au, 4,487 tonnes Pb, 6,758 tonnes Zn, netting $132.8 M in gross profit by Juanicipio (56% Fresnillo PLC, 44% Mag Silver). At the end of 2022 Mag Silver had 29.2 M of working capital, with no long-term debt. The company closed a $42.6 M bought deal public offering on February 2023.
Sierra Metals Inc. presented Q4 and year-end 2022 consolidated financial results. The company has operations in Chihuahua and Peru, but no production details by unit were presented. Sierra Metals obtained $46.2 M in revenue during the year, with an adjusted EBITDA of $13 M, a net loss of $88.3 M. The company had cash and cash equivalents of $5.1 M and negative working capital of $84.4 M. For 2023 the production guidance at Bolivar, in Chihuahua, envisions a production of 34.5 – 39.5 M Lb CuEq at cash cost $2.99 per Lb CuEq and an AISC of $5.07 per Lb CuEq. At Cusi, in Chihuahua, an undisclosed amount of silver ounces was produced at cash cost $16.77 per Oz AgEq and an AISC of $23.17 per Oz AgEq.
Avino Silver & Gold Mines Ltd. released consolidated financial results for Q4 and year-end 2022. During the year, the Avino mine in Durango milled 541.8 K tonnes to produce 985 K Oz Ag, 5,778 Oz Au, 6.5 M Lb Cu (or 2.65 M Oz AgEq), at cash cost $10.34 per Oz AgEq and an AISC of $17.91 per Oz AgEq. In the year the company had revenue of $44.2 M, ending the period with a $11.2 M cash balance and $8.8 M in working capital.
ON FINANCING
Silver Spruce Resources Inc. closed a private placement for $1.13 M in proceeds (Diamante, Sonora).
Golden Tag Resources Ltd. closed the first tranche of the previously announced non-brokered private placement, aiming to raise $5.7 M in aggregate gross proceeds (Don Diego and La Parrilla, Durango).
ON RESOURCES AND DEVELOPMENT
Alamos Gold Inc. announced the filing of a NI43-101 compliant technical report for its Mulatos property in Sonora.
Sonoro Gold Corp. reported the filing of a NI-43-101 compliant technical report on the mineral resource estimate at its Cerro Caliche project in Sonora. The report includes indicated resources of 19.9 M tonnes @ 0.44 gpt Au, 3.5 gpt Ag, containing 280 K Oz Au, 2.2 M Oz Ag, and inferred resources of 10.5 M tonnes @ 0.42 gpt Au, 4 gpt Ag, containing 140 K Oz Au, 1.3 M Oz Ag. The resources are amenable to a combination of open pit and heap leach extraction.
GoGold Resources Inc. announced drilling results from the Eagle and Main deposits at its Los Ricos South project in Jalisco. Highlighted core length intervals comprise 23.3 m @ 7.07 gpt Au, 86 gpt Ag (including 2.7 m @ 45.01 gpt Au, 106 gpt Ag); 39.9 m @ 1.28 gpt Au, 87 gpt Ag; 16.3 m @ 1.09 gpt Au, 28 gpt Ag; 18.2 m @ 1.72 gpt Au, 118 gpt Ag; 13.9 m @ 3.63 gpt Au, 144 gpt Ag. “The purpose of the program is to better define the very high-grade portions of the current deposit that may be amenable to bulk underground mining. The Company is carrying out a trade-off study to better define what portion of the deposit could be mined in a lower strip ratio pit and what portion would best be mined in more selective bulk underground mining”.
Oroco Resource Corp. released results from drilling at the South Zone of the Santo Tomás project in Sinaloa. Highlighted core length intervals estimated to be within 10% of true width comprise 221.7 m @ 0.023 gpt Au, 2 gpt Ag, 0.37% Cu; 145.0 m @ 0.008 gpt Au, 2 gpt Ag, 0.25% Cu; 89.0 m @ 0.011 gpt Au, 2 gpt Ag, 0.31% Cu (including 25.0 m @ 0.020 gpt Au, 4 gpt Ag, 0.74% Cu); 81.0 m @ 0.011 gpt Au, 1 gpt Ag, 0.20% Cu. “Historical drilling, surface geological mapping, and the Dias Geo 3D Induced Polarization survey have defined near-surface mineralization projected to 400 m below the surface along 2,000 m of strike length in the South Zone”.
Argonaut Gold Inc. updated its mineral resources to the end of 2022, including figures from its Mexican properties. The following table shows the resources on its Mexican properties, which at the end of 2022 comprised proven and probable reserves of 2.3 M Oz Au, 51.7 M Oz Ag, 86 K tonnes Cu, 5.6 M Oz Au, 94.9 Oz Ag, 187 K tonnes Cu in measures and indicated resources and 603 K Oz Au, 17.1 M Oz Ag, 5 K tonnes Cu in inferred resources.
Aura Minerals Inc. reported updated mineral reserves and resources for its operating mines, including from its Aranzazu mine in Zacatecas, to the end of 2022. Proven and probable mineral reserves stand at 9.6 M tonnes @ 0.81 gpt Au, 17.61 gpt Ag, 1.23% Cu, containing 249 K Oz Au, 5 M Oz Ag, 259 M Lb Cu. Measured and indicated resources comprise 15.1 M tonnes @ 0.97 gpt Au, 21.15 gpt Ag, 1.44% Cu, containing 471 K Oz Au, 10.4 M Oz Ag, 477.3 M Lb Cu. Inferred resources stood at 4.3 M tonnes @ 0.55 gpt Au, 16.37 gpt Ag, 1.04% Cu, containing 76 K Oz Au, 2.3 M Oz Ag, 99 M Lb Cu.
ON DEALS AND CORPORATE ISSUES
Argonaut Gold Inc. announced the completion of the sale of the Ana Paula project in Guerrero to Heliostar Metals Ltd. The deal involved US$10 M in cash upon closing and US$20 M in deferred cash and share considerations. The project has 1 M Oz Au @ 2.36 gpt Au in proven and probable mineral reserves, is permitted for an open pit and potential for underground mining, with 142,000 m of drilling in 333 holes.
Sierra Madre Gold and Silver Ltd. announced the completion of the acquisition of the La Guitarra property in Estado de Mexico. Sierra Madre issued to First Majestic Silver Corp. 69 M shares for it to maintain a 19.9% interest on Sierra Madre, shares that are to be released by an escrow on four equal installments between September 2023 and March 2025. The company opened a brokered private placement on September 2022, intending to raise up to $10 M. The common shares are halted from trading, and are expected to resume trading following the closing of the common share offering.
ON SOCIAL RESPONSIBILITY
Avino Silver & Gold Mines received for the first time in 2022 the ESR (Empresa socialmente responsible) award “granted by the Mexican Center for Philanthropy (El Centro Mexicano para la Filantropia or Cemefi, and the Alliance for Corporate Social Responsibility (Alianza por la Responsabilidad Social Empresarial or (AliaRSE))”.
On the image below: Porphyritic felsic dike on a project in the Sonoran Desert. Picture by Jorge Cirett.
During the 11th week of the year (March 13th to March 19th, 2023), 12 companies working in Mexico released news on their properties. Four companies informed on Q4 and year 2022 financial and operational results. One company opened a financing exercise and one more closed a previously announced private placement. Three companies released drilling results on their advanced properties. A company received a permanent injunction order against an act by SEMARNAT that would sharply reduce the term validity of a needed permit. One more company announced the acquisition of a large adjoining claim block to its flagship property. ON MEXICO ISSUES, no relevant news. ON EXPLORATION, no relevant news. ON MINING, SilverCrest Metals, Americas Gold and Silver, Fortuna Silver and Orla Mining released Q4 2022 production or/and financial reports. ON FINANCING, Silver Viper is to undertake a non-brokered private placement for up to $3 M. Heliostar Metals closed its non-brokered private placement, raising C$20 M. ON RESOURCES AND DEVELOPMENT, Zacatecas Silver released plans on several exploration targets at its Esperanza project in Morelos. Vizsla Silver announced the filing of a technical report with updated mineral resources for its Panuco project in Sinaloa. Defiance Silver released drilling results from testing of the Veta Madre vein system at the San Acacio project in Zacatecas. ON DEALS AND CORPORATE ISSUES, Fortuna Silver received a court ruling that protects its operation while a definitive ruling is obtained regarding the term of a permit granted by SEMARNAT. Colibri Resource acquired the 4,260 ha “Plomo Gold” property adjacent to its flagship Evelyn project in Sonora. ON SOCIAL RESPONSIBILITY, no relevant news.
ON MEXICO ISSUES
No Relevant News.
ON EXPLORATION
No Relevant News.
ON MINING
SilverCrest Metals Inc. reported financial results for year 2022. Las Chispas mine construction in Sonora was completed in May 2022 for US$133 M, with revenue from mining allowing for the payment of US$40 M of debt. Commercial production was declared on November 1, 2022. During Q4, 2.3 km of underground development were completed, 65 K tonnes were mined, and 104 K tonnes milled @ 3.67 gpt Au, 382 gpt Ag, recovering 96.9%Au, 93.3% Ag, to produce 11.9 K Oz Au, 1.2 M Oz Ag (2.2 M Oz AgEq). For the year, 201 K tonnes were mined, 188 K tonnes were milled @3.05 gpt Au, 312 gpt Ag, recovering 96.05% Au, 92.5% Ag to produce 17.8 K Oz Au, 1.7 M Oz Ag (3.3 M Oz AgEq). By the end of February 2023, the company’s cash balance was US$71.2 M, which permitted the prepayment of US$15 M and the reduction of the debt outstanding to US$35 M.
Americas Gold and Silver Corp. reported financial and operational results from its activities in Mexico and USA. The company obtained revenue of $85.0 M on the production of 5.3 M Oz AgEq, with cash costs of $0.77 per Oz Ag and all-in sustaining costs of $9.64 per Oz Ag. At Cosalá, in Sinaloa, 636 K Oz Ag, 39.3 M Lb Zn, 15.3 M Lb Pb were produced. For 2023, production is projected to be between 1.2 – 1.4 M Oz Ag, 33 – 37 M Lb Zn, 11 – 13 M Lb Pb.
Fortuna Silver Mines Inc. reported financial and operating results for Q4 and full year 2022. At San Jose, in Oaxaca, 259.5 K tonnes were milled at a rate of 2,883 tonnes per day, grading 194 gpt Ag, 1.13 gpt Au, recovering 91% Ag, 90% Au, to produce 1.47 M Oz Ag, 8,499 Oz Au, at cash cost $11.16 per Oz AgEq and All-in sustaining cost of $15.53 per Oz AgEq.
Orla Mining Ltd. announced results for Q4 and full year 2022. During the year Orla commissioned the Camino rojo Oxide deposit in Zacatecas, producing 32,017 Oz Au in Q4 for a total of 109,596 Oz Au on the year, at an all-in sustaining cost of $634 per Oz Au on Q4 and $611 per Oz Au on the year. By the end of 2022 the company had a cash balance of $96.3 M and net debt of $49.5 M. “A 34,000-metre, 57-hole follow-up drill program will continue to infill the Camino Rojo Sulphides in 2023 (20% of the holes will extend to test the deep potential of the deposit). In addition, 6,500 metres will be drilled on the extensions of the Camino Rojo oxide deposit to update and expand resources and reserves”.
ON FINANCING
Silver Viper Minerals Corp. is to undertake a non-brokered private placement financing to raise gross proceeds of up to US$3 M (La Virginia, Sonora).
Heliostar Metals Ltd. closed its previously announced non-brokered private placement offering, for gross proceeds of C$20.4 M (Ana Paula, Guerrero).
ON RESOURCES AND DEVELOPMENT
Zacatecas Silver Corp. announced exploration plans on several near surface targets and a key deep intrusion target near the Esperanza project in Morelos. The previous operators drilled several holes with high grade intercepts on the western edge beneath the planned open pit. Near surface targets include the Northern contact, Northeastern contact and Colotepec. Planned exploration includes soil geochemistry on a 50 by 100 m grid, land magnetics, and an induced polarization survey. Depending on results obtained, the use of deep-sensing audio-frequency magnetotellurics (AMD) or large-scale controlled audio magnotellurics (CSAMT) may be used.
Vizsla Silver Corp. filed a NI-43-10 compliant technical report containing an updated mineral resource estimate on the Panuco project, in Sinaloa.
Defiance Silver Corp. provided results for seven drill holes testing the Veta Grande vein system of the San Acacio project in Zacatecas. “These holes were designed to improve the main Veta Grande structural model and to test splays to the Veta Grande system, including the footwall San Herculano structure”. Highlighted core-length intervals comprise 9.57 m @ 157 gpt Ag, 0.12 gpt Au; 8.59 m @ 60 gpt Ag, 0.07 gpt Au, 6.98 m @ 81 gpt Ag, 0.17 gpt Au; 1.15 m @ 45 gpt Ag, 0.34 gpt Au, 1.3% Pb, 0.6% Zn; 2.73 m @ 237 gpt Ag, 0.04 gpt Au; 2.23 m @ 95 gpt Ag, 0.14 gpt Au; 11.22 m @ 24 gpt Ag, 0.34 gpt Au, 0.7% Pb, 1.7% Zn (including 3.40 m @ 50 gpt Ag, 0.71 gpt Au, 1.7% Pb, 3.85% Zn).
ON DEALS AND CORPORATE ISSUES
Fortuna Silver Mines Inc. reported that the Mexican Federal Administrative Court has granted a permanent injunction to Fortuna Silver that allows the San Jose mine in Oaxaca to continue to operate under the terms of the 12-year environmental impact authorization (EIA). Fortuna had to initiate legal proceedings against SEMARNAT after it issued a re-assessment on the term of the EIA. “The grant of the permanent injunction in favor of Minera Cuzcatlan allows the San Jose Mine to continue to operate under the terms of the 12-year EIA until the Court has ruled on the revocation of the EIA”.
Colibri Resource Corp. announced the acquisition of the “Plomo Gold” property in the Caborca belt in Sonora. The 4,260 ha property takes Colibri holdings in the area to 4,766 ha. The property has an historical database containing 1,853 rock samples, 1,570 m of drilling in 10 holes, geological mapping and 14.1 Km of induced polarization survey. High priority targets include Banco de Oro, San Perfecto (with an 11.65 m drill intercept averaging 0.66 gpt Au), Pavorreal and Bonancita. “The Plomo property is underlain by a variety of rock types that include Paleoproterozoic metamorphic rocks, a sequence of Jurassic volcanic rocks ranging in composition from andesite to rhyolite, and intrusive rocks that include diorite, granodiorite, and monzonite”.
ON SOCIAL RESPONSIBILITY
No Relevant News.
On the image below: Blue sky and copper staining on a project in the Sonoran Desert. Picture by Jorge Cirett.
Five companies reported results of drilling on Mexican projects during the first week of March 2023. The five properties present epithermal mineralization of low to intermediate sulfidation character deposited along structures and/or related stockworks and dissemination on favorable rocks.
Vizsla’s Silver Panuco project in Sinaloa presented the higher grade gold intercept, with 15.0 m averaging 7.20 gpt Au (108 gpt*m). The released intercepts are part of the resource area of the Copala structure at its Panuco project in Sinaloa. Other relevant gold results are those coming from Gold Resource’s Don Diego mine in Oaxaca, with 4.21 m at 7.93 gpt Au and Prime Mining’s Los Reyes property in Sinaloa with 15.80 m averaging 1.40 gpt Au.
On silver, the strongest intercept was that by Vizsla’s at its Panuco project with 15.0 m grading 1,142 gpt Ag (or 17,130 gpt *m), followed by Silver Tiger’s intercept of 57.20 m averaging 232 gpt Ag (or 13,270 gpt*m) from its El Tigre project.
Base metals intercepts were led by results from Silver Tiger’s El Tigre , with 57.20 grading 0.41% Cu and 20.0 m at 4.11% Pb, 8.15% Zn on the Sulfide zone still being defined.
During the 5th week of the year (January 30th to February 5th, 2023), 15 companies working in Mexico released news on their properties. One company informed on metallurgical results from its project, one company posted consolidated 2022 production and three companies provided updates on 2022 work on their properties and plans for 2023. One company began trading on the OTCQB in USA and two companies are to undertake private placements. Three companies informed on drilling results and work on their advanced properties, one other on the signing of an option agreement on the acquisition of a property and one more provided its bi-weekly status report. ON MEXICO ISSUES, mining companies are among the best compliers on environmental, social and governance strategies. ON EXPLORATION, in Chihuahua, Radius Gold informed on metallurgical results by associate Fresnillo PLC on its Plata Verde property. ON MINING, Altaley Mining provided an update on its 2023 plans for its Tahuehueto (Durango) and Campo Morado (Guerrero) properties. Minera Alamos informed on the late 2022 commercial production and some operational hurdles at its Santana project in Sonora. SilverCrest Metals released Q4 2022 production results and informed on relevant mining issues at Las Chispas, in Sonora. Capstone Copper presented 2023 production guidance for its Cozamin mine in Zacatecas. ON FINANCING, Excellon Resources commenced trading on the OTCQB in USA. GRSilver Mining and Reyna Silver are undertaking private placements for $3 M and C$4 M respectively. ON RESOURCES AND DEVELOPMENT, Orla Mining provided an update on 2022 exploration activities and plans for 2023 at its Camino Rojo project in Zacatecas, releasing impressive drill results from the sulfide zone. Alamos Gold released drilling results from Puerto del Aire deposit in the Mulatos project in Sonora, with the second highest gold intercept in Mexico on the last nine months. Oroco Resource announced drilling results from the South zone of the Santo Tomás project in Sinaloa. ON DEALS AND CORPORATE ISSUES, Aloro Mining signed an option agreement with Cuesta del Cobre to acquire the Quitovac project in Sonora. Gatos Silver complied with the by-weekly status report. ON SOCIAL RESPONSIBILITY, no relevant news.
ON MEXICO ISSUES
According to Miranda Partners, mining companies are among the best positioned on environmental, social and governance strategies
ON EXPLORATION
Radius Gold Inc. informed on metallurgical results from its Plata Verde project in Chihuahua. Fresnillo PLC has an exclusivity agreement on the project since mid-2022 to negotiate an option agreement to earn a 70% interest in the project. Approximately 100 kg of bulk samples were collected from Mina Mojonera and Mina Real underground workings for metallurgical testing by cyanide leaching and flotation. The samples were classified as “soft” for ball mining, cyanide leach tests reported average 93% Ag recovery, “Flotation studies generate Pb/Cu concentrates with a high grade of silver and good values of lead and copper with recovery of around 85% for silver, 52% for lead and 64% for copper”, the combination of flotation + tailings cyanidation averaged 97% Ag recovery. “Galena is the main sulfide, which registered around 0.11% by weight, chalcocite 0.12%, and sphalerite, pyrite, chalcopyrite and arsenopyrite, which totaled around 0.06%, were detected to a lesser extent. As silver species, stromeyerite, argentite and a low proportion of AgHg were detected. Non-sulfur gangue represented 99.6% by weight mainly as baryte, calcite, albite, and quartz”.
ON MINING
Altaley Mining Corp. provided an update on its operations plans for 2023. At Tahuehueto, in Durango, a new consulting construction manager was appointed and recruiting of a new site general manager is in process. The construction of the initial 500 tpd operation is to be completed on 2Q23 and expansion to 1,000 tpd nameplate capacity operation on 4Q23. “Currently the mine is in pre-production, averaging 300 tpd”. At 1,000 tpd capacity the mine is projected to produce 42.8 K Oz AuEq per year, generating a yearly EBITDA of US$28.1 M. For the Campo Morado mine in Guerrero, plans have “strategically shifted focus” towards mining of higher-grade copper orebodies. Campo Morado EBITDA for 2023 is projected to be US$15.9 M. The company expects to progress on implementing recommendations made by Ausenco to improve plant performance at Campo Morado. The metals production for 2023 from Campo Morado is expected to be 15,433 tonnes Zn, 2,967 tonnes Cu, 2,142 tonnes Pb, 184 Kg Au (5,916 Oz Au), 25.8 tonnes Ag (829.8 K Oz Ag) while guidance at Tahuehueto is 1,903 tonnes Zn, 545 tonnes Cu, 1454 tonnes Pb, 289 kg Au (9,291 Oz Au), 6,258 kg Ag (201.2 K Oz Ag).
Minera Alamos Inc. informed on the completion in the second half of 2022 of the initial thresholds for commercial production at the Santana project in Sonora, including gold recovery rates from the heap leach pad and monthly mining rates. Final approvals for resubmitted applications are pending for the next phase of pad expansion and full access to the Nicho deposit. Due to water scarcity the company is giving priority at this time to pre-stripping activities, and competing work and plans to proceed with the expansion when the permits are received. The mine was built for US$10 M, most of which has been paid back by the operational performance, which has demonstrated the ability to operate at 10,000 tpd of ore and waste moving. Overall gold recoveries are above 70% for material under 45-60 days leach with residual leach ongoing.
SilverCrest Metals Inc. reported Q4 2022 operational results and an update on activities at its Las Chispas mine in Sonora, where commercial production was announced on November 1, 2022. During the quarter 104.3 K tonnes @ 3.67 gpt Au, 382 gpt Ag were processed, recovering 96.9% Au, 93.3% Ag to produce 11,940 Oz Au, 1.20 M Oz Ag (2.23 M Oz AgEq). Underground mining averaged 700 tonnes per day, with resue mining planned for some stopes currently being replaced either by cut and fill or long hole mining. Ore stockpiles stood at 261.6 K tonnes at the end of the period. The company expects to release an updated technical report on Q2 2023. At the end of the quarter cash and cash equivalents represented $50.8 M and total debt $50 M.
Capstone Copper Corp. announced consolidated copper production for 2022, without disclosing production by property. The 2023 guidance aims for production at the Cozamin mine in Zacatecas to be in the 23 to 25 K tonnes Cu, with a cash cost of $1.50 – $1.65 per Lb Cu, the lowest for all its operations in Arizona, Mexico and Chile.
ON FINANCING
Excellon Resources Inc. commenced trading on the OTCQB Venture Market in USA, while continuing to trade also at the Toronto Stock Exchange (La Negra, Hidalgo).
GRSilver Mining Ltd. proposes to undertake a non-brokered private placement to raise total gross proceeds of up to $3 M (Plomosas, Sinaloa).
Reyna Silver Corp. entered into an agreement with Eight Capital as lead underwriter and on behalf of a syndicate of underwriters in connection with a bought deal private placement financing for aggregate gross proceeds of C$4 M (Guigui and Batopilas, Chihuahua).
ON RESOURCES AND DEVELOPMENT
Orla Mining Ltd. provided an update on 2022 exploration activities at Camino Rojo in Zacatecas, and an overview on 2023 exploration plans. Drilling the Camino Rojo Sulfides returned good gold intercepts, of which the highlighted ones comprise 64.0 m @ 4.66 gpt Au; 79.0 m @ 2.76 gpt Au; 70.0 m @ 2.81 gpt Au; 87.0 m @ 1.92 gpt Au; 73.5 m @ 1.74 gpt Au; 40.5 m @ 3.83 gpt Au; 16.0 m @ 6.94 gpt Au; 37.0 m @ 3.78 gpt Au; 49.5 m @ 2.71 gpt Au. Drilling below the current mineral resource has identified feeder-like structures, with intersects of up to 22.9 m @ 4.02 gpt Au, 1.5% Zn. Drilling of regional targets has returned up to 7.10 m @ 0.54 gpt Au and 2.35 m @ 1.35 gpt Au at the Guanamero target area. “Further drilling is planned in 2023 to test for zones of oxidized mineralization that could potentially allow for local expansion of the oxide pit”. For the Camino Rojo sulfides zone, a 34,000 m of infill drilling in 57 holes is planned, with 20% to test the deep potential, and 6,500 m more on extensions to the Oxide zone to expand resources. On regional exploration, 15,000 to 20,000 of RC drilling and 2,000 to 5,000 m of core drilling are planned to test multiple targets.
Alamos Gold Inc. reported results from surface exploration drilling at Puerto del Aire (PDA), an underground deposit within the Mulatos project in Sonora. Highlighted true width intervals comprise 25.95 m @ 33.40 gpt Au (an impressive 866.7 gpt*m); 3.25 m @ 67.58 gpt Au; 6.20 m @ 18.33 gpt Au; 1.50 m @ 75.50 gpt Au; 2.35 m @ 36.50 gpt Au; 1.40 m @ 60.20 gpt Au; 6.75 m @ 11.16 gpt Au; 9.00 m @ 6.73 gpt Au. The results extend high-grade Au mineralization outside the resource zone that holds 556 K Oz Au in reserves and resources grading close to 5 gpt Au. Since the last mineral resource estimate was released on the PDA deposit in 2021, 92 drill holes totalling 27,117 m have been completed. The $17 M exploration budget at Mulatos includes $4 M for drilling focused on expanding resources at PDA.
Oroco Resource Corp. announced drilling results from the South zone at its Santo Tomás project in Sinaloa. The 2 km long zone is subdivided in three segments: northern, middle and southern, with the current drilling reported from the middle and southern segments. Highlighted core length results, that are reported to be within 10% of true width, comprise 127.0 m @ 0.37% Cu, 0.049 gpt Au; 146.6 m @ 0.37% Cu, 0.073 gpt Au; 82.0 m @ 0.37% Cu, 0.032 gpt Au; 146.0 m @ 0.24% Cu, 0.014 gpt Au; 66.0 m @ 0.26% Cu, 0.009 gpt Au, 180 ppm Mo; 47.0 m @ 0.35% Cu, 0.018 gpt Au, 80 ppm Mo; 179.2 m @ 0.36% Cu, 0.022 gpt Au, 200 ppm Mo; 349.1 m @ 0.36% Cu, 0.027 gpt Au, 60 ppm Mo; 187.9 m @ 0.51% Cu, 0.038 gpt Au, 120 ppm Mo; 234.3 m @ 0.34% Cu, 0.017 gpt Au, 120 ppm Mo. Drilling on the southern zone segment has intersected western dipping dikes and mineralization, overprinted by hydrothermal breccia bodies and a wide array of stockwork vein and fracture mineralization.
ON DEALS AND CORPORATE ISSUES
Aloro Mining Corp. signed an option agreement with Cuesta del Cobre S. de R.L. de C.V. to acquire the Quitovac project in Sonora. The terms include cash and shares amounts of $35 K, 200 K shares within 30 days of approval; $45 K and 200 K shares on year one; $55 K and 200 K shares on year two; $65 K and 200 K shares on year three; $75 K and 300 K shares on year four; $100 K and 400 K shares on year five; $200 K and 500 K shares on year six. The project covers 2,644 hectares with 14 claims, with the orogenic gold mineralization having been tested with 12,450 m of drilling in 100 holes by four companies between 1987 and 2012.
Gatos Silver Inc. provided the bi-weekly status report in accordance with National Policy 12-203-Management Cease Trade Orders. Ernst & Young LLP was appointed on November 14, 2022 as the company’s independent registered public accounting firm. “The Company expects all delayed filings, including the audit of the financial statements required to be included in its annual report on Form 10-K for the year ended December 31, 2021, and the reviews of its quarterly reports on Forms 10-Q for the quarters ended March 31, 2022, June 30, 2022 and September 30, 2022, to be completed before the end of the first quarter of 2023” (Cerro Los Gatos, Chihuahua).
ON SOCIAL RESPONSIBILITY
No Relevant News.
On the image below: Quartz specularite vein on a copper project in the Sonoran Desert. Picture by Abraham López.
