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

/ Gambusino Prospector / Leave a comment

By Jorge Cirett                                             

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

ON MEXICO ISSUES

  • No Relevant News.

ON EXPLORATION

  • No Relevant News.

ON MINING

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

ON FINANCING

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

ON RESOURCES AND DEVELOPMENT

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

ON DEALS AND CORPORATE ISSUES

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

ON SOCIAL RESPONSIBILITY

  • No Relevant News.

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

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

/ Gambusino Prospector / Leave a comment

By Jorge Cirett                                             

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

ON MEXICO ISSUES

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

ON EXPLORATION

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

ON MINING

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

ON FINANCING

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

ON RESOURCES AND DEVELOPMENT

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

ON DEALS AND CORPORATE ISSUES

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

ON SOCIAL RESPONSIBILITY

  • No Relevant News.

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

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

/ Gambusino Prospector / Leave a comment

By Jorge Cirett                                             

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

ON MEXICO ISSUES

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

ON EXPLORATION

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

ON MINING

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

ON FINANCING

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

ON RESOURCES AND DEVELOPMENT

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

ON DEALS AND CORPORATE ISSUES

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

ON SOCIAL RESPONSIBILITY

  • No Relevant News.

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

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

/ Gambusino Prospector / Leave a comment

By Jorge Cirett                                             

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

ON MEXICO ISSUES

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

ON EXPLORATION

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

ON MINING

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

ON FINANCING

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

ON RESOURCES AND DEVELOPMENT

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

ON DEALS AND CORPORATE ISSUES

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

ON SOCIAL RESPONSIBILITY

  • No Relevant News.

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

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

/ gambusinoprospectormexico / Leave a comment

Silica Ridge

By Miguel A Heredia

During the 4th week of the year (January 22nd to January 28th, 2024), at least 26 press releases were announced by companies working in Mexico, with seven reporting resources and developments of their projects, six communicating production results, six disclosing deals and corporate issues, five informing on exploration results, one announcing financing issues, and one commenting on Mexican issues.  ON MEXICO ISSUES, Orla Mining, Gatos Silver, and Minaurum reported the best drilling intercepts in Mexico on the fourth week of January, 2024. ON EXPLORATION, In Sonora, Infinitum commenced a 2,500m drilling program in its flagship La Adelita project, Sonora, Minaurum  released final 2023 drilling results at La Adelita project, and Tocvan reported rock chip samples results from its Picachos project. In Chihuahua, Reyna Silver shared results from Artificial Intelligence optimization of existing geophysical data from the Guigui project.  In Nayarit, Angel Wings provided an exploration update and filed a NI 43-101 technical report on its La Reyna project.   ON MINING, Golden Minerals commenced mining operations at its Velardeña mine in Durango. Americas Gold and Silver reported Q4 and full- year 2023 production results from its Cosalá mine operation in Sinaloa. Capstone announced Q4 and full-year 2023 production results and provided production and cost guidance for 2024 for its Cozamin mine in Zacatecas. Mag Silver reported Q4 and full-year 2023 production results from its Juanicipio project in Zacatecas. Sierra Metals provided a summary of the work conducted in the year 2023 (Bolivar mine, Chihuahua).  SilverCrest reported Q4 and full-year 2023 production and financial results from its Las Chispas mine in Sonora. ON FINANCING, Bear Creek closed its previously announced restructuring transaction with Sandstorm Gold Ltd (Mercedes Mine, Sonora). ON RESOURCES AND DEVELOPMENT, Discovery Silver outlined its 2024 work program for its Cordero project in Chihuahua. Endeavour provides a development update for its Terronera project in Jalisco. Kootenay announced updated mineral resource estimate for its La Cigarra project, Chihuahua.  Gatos Silver reported results from its resource definition drilling program and exploration work being conducted at its Cerro Los Gatos project, Chihuahua. Orla provided an update of the infill drilling program at its Camino Rojo sulphide deposit in Zacatecas.  Prime Mining revealed the 2024 outlook for its high-grade Los Reyes project in Sinaloa.  ON DEALS AND CORPORATE ISSUES, Angel Wing announced that it has changed its auditors (La Reyna project, Nayarit).  Goldgroup announced that the TSX determined to delist the company common shares (Cerro Prieto property, Sonora). Guanajuato Silver announced that it will be updating the technical reports of their Mexican mining operations. Infinitum Copper informed that it has already completes the necessary expenditure commitment to earn an initial 80% of La Adelita property, Sonora from Minaurum Gold Inc. Mexus announced management changes (Santa Elena property, Caborca, Sonora). Prime granted incentive stock options to management of the company (Los Reyes, Sinaloa). ON SOCIAL RESPONSIBILITY, No relevant news.

ON MEXICO ISSUE

  • Orla Mining Ltd., Gatos Silver Inc., and Minaurum Gold Inc., reported the best drilling intercepts in Mexico on the fourth week of January, 2024. Details are shown in the table below:

ON EXPLORATION

  • Infinitum Copper Corp., commenced a drilling program at its flagship La Adelita project, Sonora. The program will consists of 15 diamond holes for a total of 2,500m. Objective of the drilling program is to expand the size of the high-grade mineralized area at Cerro Grande zone as well as test for mineralization at depth in the Las Trancas zone.
  • Minaurum  Gold Inc., released 2023 drilling results from the last six holes drilled at La Adelita project in Sonora. Hole AD-23-0034 encountered sporadic mineralization across multiple horizons: 0.08% Cu, 0.2 g/t Au, 16 g/t Ag, and 0.7% Zn over 3m, plus 0.40% Cu, 0.46 g/t Au, 86 g/t Ag, and 0.26% Zn over 0.95m, plus 0.117% Cu, 1.03 g/t Au, 30 g/t Ag, and 0.18% Zn over 2.80m, and plus 0.90% Cu, 0.18 g/t Au, 43 g/t Ag, and 0.33% Zn over 4.05m.
  • Tocvan Ventures Corp., reported results of 75 rock chip samples from its Picachos project in Sonora. The 75 samples average 0.6 g/t Au and 2 g/t Ag with the values up to 15.9 g/t Au and 32 g/t Ag. “A new mineralized trend extending over 1.6 km in length has been discovered marked by old historic workings and exposure of mineralized veins and shear zones”.
  • Reyna Silver Corp., shared results from Artificial Intelligence (AI) optimization of existing geophysical data from the Guigui project in Chihuahua. Explore Tech´s proprietary AI algorithm highlight a strong, multi-layered magnetic anomaly southeast of the 0.5 sq.km sulphide- mineralized skarn footprint identified in 2022 drilling. Explore Tech’s platform first uses AI to identify and locate where a geophysical anomaly actually is and then design the optimum hole geometry to hit it. “The results reinforce existing geological thinking that the intrusive source for the district lies in that area and greatly enhance the area’s potential. Pads to drill the target are already permitted and accessible”.
  • Angel Wings Metals Inc., provided an exploration update and filed a NI 43-101 technical report on its La Reyna project, Nayarit. La Reyna is a contiguous block of fully titled mineral claims hat consolidates most of the historical Aguila de Oro mining district, with rock chip samples returning from nil to 27.12 g/t Au and nil to 2,938 g/t Ag., as well as anomalous values of Pb, Zn, Cu, Co, Bi, and Mo. “Mineralization is hosted in an extensive area of alteration that has been mapped over 70 square kilometers and is host to numerous past producing shallow mine and gambusino workings. To date, over 20 prospects with highly anomalous gold and silver have been identified on the project. A ground geophysics program including 11.2 line kilometers of Induced Polarization and 2 line kilometers of HSMAT is underway over El Polo-Dolorosa. Data is being processed with a report including the sections and maps due in early February”.

ON MINING

  • Golden Minerals Company commenced mining operations at its Velardeña mine in Durango. It begin mining in six stopes and is steadily ramping up daily production to reach a rate of approximately 150 tonnes per day  in March, and ultimately a full production rate of approximately 325 tpd in the second quarter.
  • Americas Gold and Silver Corporation reported Q4 and full-year 2023 production results from its Cosalá mine operation in Sinaloa. The company produced 321K Oz Ag, 2.7M Lb Pb, and 8.3M Lb Zn (3.8M Oz AgEq) in Q4, 2023 to complete a total production of 1.1M Oz Ag, 11.5M Lb Pb, and 34.1M Lb Zn in the full-year 2023.
  • Capstone Copper Corp., announced Q4 and full-year 2023 production results and provided production and cost guidance for 2024 for its Cozamin mine in Zacatecas. During Q4, 2023 the company produced 14.7M Lb Cu for a total production of 54.5M Lb Cu in the full year 2023. Capstone also provided production and cost guidance for 2024 and expects to produce between 49.3M Lb Cu and 53.8M Lb Cu at a cash costs of USD $1.85-USD $2.05 per Lb Cu produced. 
  • Mag Silver Corp., reported Q4 and full-year 2023 production results from its Juanicipio project in Zacatecas (56% / 44% Fresnillo plc and Mag Silver, respectively). In Q4, 2023, Juanicipio processed on 100% basis, 346,766 tonnes of 467 g/t Ag, 1.37 g/t Au, 1.3% Pb, and 2.4% Zn to produce 4.5M Oz Ag, 10.59K Oz Au, 9.19M Lb Pb, and 15.08M Lb Zn. For the full-year 2023, the tonnage processed on 100% basis was 1,268,756 tonnes of 520 g/t Ag, 1.39 g/t Au, 0.9% Pb, and 1.7% Zn to produce 16.8M Oz Ag, 36.7K Oz Au, 28.35M Lb Pb, and 44.75M Lb Zn.
  • Sierra Metals Inc., provided a summary of the work conducted in the year 2023 at its Bolivar mine in Chihuahua. The company announced that Bolivar mine achieved record production levels and that it also replaced 104% of the ore mined. On the other hand, Cusi mine in Chihuahua was placed on care and maintenance allowing management to direct full effort and resources to optimize the company’s two core assets at Yauricocha (Peru) and Bolivar (Mexico).  The company also announced that it raised CAD $16M and that its share price increased by more than 210%, moving from CAD $0.24 to CAD $0.75.
  • SilverCrest Metals Inc., reported Q4 and full-year 2023 production and financial results from its Las Chispas mine in Sonora. In Q4, 2023 the company milled 78,600 tonnes of 4.28 g/t Au and 410 g/t Ag, with metallurgical recoveries of 98.3% and 97.7% respectively to recover 14,100 Oz Au and 1.34M Oz Ag (2.47 M Oz AgEq), of which it sold 16,100 Oz Au and 1.27M Oz Ag (2.56M Oz AgEq) at average realized prices of USD $1,977 per Oz Au and USD $23.09 per Oz Ag, generating USD $61.3M of revenue. In the full-year 2023 the company milled 300,900 tonnes of 4.39 g/t Au and 423 g/t Ag, with metallurgical recoveries of 98.1% and 96.5% respectively to recover 59,700 Oz Au and 5.65M Oz Ag (10.4M Oz AgEq), of which it sold 58,200 Oz Au and 5,62M Oz Ag (10.25 M Oz AgEq), at average realized prices of USD $1,945 per Oz Au and USD $245.1M of revenue.

ON FINANCING

  • Bear Creek Mining Corporation closed its previously announced restructuring transaction with Sandstorm Gold Ltd. The Transaction is expected to improve the Company’s ability to produce free cash flow in the near term from the Mercedes mine in Sonora.

ON RESOURCES AND DEVELOPMENT

  • Discovery Silver Corp., outlined its 2024 work program for its Cordero project in Chihuahua. The Feasibility Study (FS) is nearing completion and is expected to be delivered later this quarter. The FS will include an additional 35,000m of reserve definition and expansion drilling, the results from the FS metallurgical testwork program as well as additional geotechnical and hydrogeology data collected in 2023. The Company will also provide an updated resource estimate concurrent with the results of the Study. In Permitting, the Environmental Impact Assessment is under review and approval by the Secretariat of the Environment and Natural Resource (SEMARNAT), while the Change of Land Use (CUS) known as Estudio Tecnico Justificativo (ETJ) will be finalized in the coming months with formal submission of the CUS expected to be made by 3Q 2024. Impact assessment and power installation studies were completed in 2023 confirming that there is sufficient capacity in the existing power grid to supply the project with power for operations at peak throughput levels. In 2023 the Company secured the surface rights that correspond with the planned open pit and key infrastructure locations at Cordero. The two potential sources of water for the project are local groundwater and water from local water treatment plants in the region. The Company has completed a hydro geological assessment through its Mexican specialist consultant utilizing data from hydrogeology drilling and pump test wells. Initial results indicate the potential for sufficient local groundwater for Phase 1 of the project (mill throughput of ~25,000 tonnes per day). In 2024, the company plans to complete mapping and sampling of new target areas along with 2,500 m of drilling.
  • Endeavour Silver Corp., provides a development update for its Terronera project in Jalisco. The company has made significant construction progress and has updated its initial capital cost, schedule, and execution plan. The table below summarizes the main items:

In terms of project funding, the company expects to make the first draw under the $120 million project loan debt facility in the first quarter of 2024. Construction of the project remains on track and the funds available under the project loan debt facility will be allocated to fund construction.

  • Kootenay Silver Inc., announced updated mineral resource estimate for its La Cigarra project, Chihuahua. The 2024 Mineral Resource Estimate (MRE) incorporates a significantly revised geological model compared to the previous resource and features a database of 201surface diamond and RC drillholes totaling 36,988 meters and 26,419 assay intervals. The below table shows the 2024 MRE for la Cigarra project:
  • Gatos Silver Inc., reported results from its resource definition drilling program being conducted at the South-East Deeps Zone, as well as an update of the exploration work carried out a its Cerro Los Gatos project in Chihuahua. Resource definition drilling highlights (true widths reported) include holes SE-557 with 245 g/t Ag, 2.0% Zn, 1.9% Pb, 0.3 g/t Au, and 0.67% Cu over 5.5m, including 528 g/t Ag, 0.3% Zn, 1.3% Pb, 0.06 g/t Au, and 1.41% Cu over 2.8M; hole SE-558 with 88 g/t Ag, 11.7% Zn, 3.7% Pb, 0.15 g/t Au, and 0.23% Cu over 3.1m, plus 70 g/t Ag, 2.7% Zn, 1.7% Pb, 0.03 g/t Au, and 0.3% Cu over 1.2m, plus 151 g/t Ag, 2.8% Zn, 6.1% Pb, 0.18 g/t Au, and 0.43% Cu over 4m, including 291 g/t Ag, 4.3% Zn, 12.2% Pb, 0.4 g/t Au, and 0.55% Cu over 1.6m: hole SE-559 with 103 g/t Ag, 16.5% Zn, 7.0% Pb, 0.14 g/t Au, and 0.21% Cu, plus 52 g/t Ag, 9.8% Zn, 3.2% Pb, 0.22 g/t Au, and 0.13% Cu over 2.4m; hole SE-560 with 58 g/t Ag, 3.2% Zn, 2.2% Pb, 0.05 g/t Au, and 0.09% Cu over 1.3m, plus 243 g/t Ag, 9.7% Zn, 6% Pb, 0.39 g/t Au, and 0.28% Cu in 3.3m; hole SE-562 with 31 g/t Ag, 3.1% Zn, 0.9% Pb, 0.16 g/t Au, and 0.08% Cu over 2.5m, plus 179 g/t Ag, 5.8% Zn, 4.5% Pb, 1.1 g/t Au, and 0.65% Cu over 2.5m, plus 20 g/t Ag, 5.8% Zn, 2.2% Pb, 0.4 g/t Au, and 0.02% Cu over 1.7m; hole SE-563 with 133 g/t Ag, 8.3% Zn, 3.2% Pb, 0.11 g/t Au, and 0.16% Cu over 8.9m, plus 54 g/t Ag, 2.8% Zn, 4.1% Pb, 0.07 g/t Au, and 0.11% Cu over 1.2m; and hole SE-272 with 97 g/t Ag, 7.8% Zn, 2.4% Pb, 0.24 g/t Au, and 0.35% Cu over 4.8m, including 201 g/t Ag, 15.4% Zn, 4.3% Pb, 0.25 g/t Au, and 0.73% Cu over 1.3m. Greenfields exploration work in Los Gatos District continues to advance in preparation for increased drilling expected to start in Q2 2024. One hole has been completed at Portigueño and one hole at Cascabel with positive indicator minerals and favourable structures present. The company also completed detailed mapping and rock geochemistry at the Esperanza, San Agustin, Portigueño, Cieneguita and San Luis areas to support drill target generation.
  • Orla Mining Ltd., provided an update of the 37, 677m infill drilling program at its Camino Rojo sulphide deposit in Zacatecas. Drilling highlights of 23 out of 56 holes include holes CRSX23-17 with 2.54 g/t Au over 68.5m, including 13.1 g/t Au over 1.5m; hole CRSX23-19C with 2.08 g/t Au over 124.5m, including 2.46 g/t Au over 60m, and including 11.7 g/t Au over 1.5m, and including 11.7 g/t Au over 3m, and including 3.11 g/t Au over 20.5m; hole CRSX23-20B with 2.22 g/t Au over 96.5m, including 3.24 g/t Au over 33.9m, including 12.8 g/t Au over 1.2m, and including 17.5 g/t Au over 1.6m; hole CRSX23-20F with 2.36 g/t Au over 65.4m, including 2.77 g/t Au over 13.5m, and including 2.86 g/t Au over 36.5m, and including 14.8 g/t Au over 1.5m; hole CRSX23-21A with 2.44 g/t Au over 49.5m, including 4.59 g/t Au over 21m, including 17.21 g/t Au over 1.5m, and including 18.8 g/t Au over 1.5m; hole CRSX23-23A with 3.41 g/t Au over 36m, including 5.94 g/t Au over 18m, and including 29.2 g/t Au over 3m; and hole CRSX23-24A with 2.94 g/t Au over 66.5m, including 4.98 g/t Au over 16.5m, including 21.7 g/t Au over 1.5m, and including 13.9 g/t Au over 1.5m.
  • Prime Mining Corp., revealed the 2024 outlook for its high-grade Los Reyes project in Sinaloa. The 2024 plans include the targeting completion of 40,000m of drilling and continue the geological mapping and geochemical sampling; continue preliminary investigations of metallurgical, geotechnical  and mine planning parameters, including process optimization, assessment of open pit VS underground opportunities and evaluation of permitting requirements; continue to engage with local ejidos through educational and community programming access improvements, and water access; and target a late-2024 resource increase. The exploration drilling will focus on extending the high-grade at Z-T areas; expanding the high-grade mineralization at Guadalupe East; increasing the Central Area resource; and generative target drilling of high-grade intercepts at Las Primas, Mariposa, Fresnillo, Mina, and others to further develop the resource potential at Los Reyes.

ON DEALS AND CORPORATE ISSUES

  • Angel Wing Metals Inc., announced that it has changed its auditors from Kenway Mack SlusarchukStewart LLP to Davidson & Company LLP (La Reyna project, Nayarit).
  • Goldgroup Mining Inc., announced that the TSX determined to delist the company common shares effective at the close of market on February 16, 2024 for failing to meet the continued listing requirements of the TSX (Cerro Prieto property, Sonora).
  • Guanajuato Silver Company Ltd., announced that, because of a disclosure review of the British Columbia Securities Commission, it will be providing updates to its NI 43-101 technical reports (El Cubo mine, Guanajuato).
  • Infinitum Copper Corp., informed that it has already completes the necessary expenditure commitment to earn an initial 80% of La Adelita property, Sonora from Minaurum Gold Inc., by making a total expenditure on the project of CAD $3,042,090.
  • Mexus Gold US announced management changes. The company and Mr. Mark Ashley have mutually agreed to terminate the August 2, 2023 contract between both parties. The termination of this agreement was completed on December 26, 2023 (Santa Elena property, in Caborca, Sonora).
  • Prime Mining Corp., granted incentive stock options to management of the company for a total of 991,626 options, 455,846 restricted share units, and 661,202 deferred share units. The Options were granted to management of the company and are exercisable at the price of $1.83 per share. The Options will vest and become exercisable over a three year period, with one-third vesting on the first year anniversary of the grant, one-third on the second year anniversary, and one-third on the third year anniversary (Los Reyes, Sinaloa).

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, silica ridge in a low-sulphidation epithermal vein system in a project in Zacatecas. Photo by Miguel A Heredia

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

/ Gambusino Prospector / Leave a comment

By Jorge Cirett                                             

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

ON MEXICO ISSUES

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

ON EXPLORATION

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

ON MINING

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

ON FINANCING

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

ON RESOURCES AND DEVELOPMENT

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

ON DEALS AND CORPORATE ISSUES

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

ON SOCIAL RESPONSIBILITY

  • No Relevant News.

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

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

/ Gambusino Prospector / Leave a comment

By Jorge Cirett                                             

During the 1st week of the year (January 1st to January 7th, 2024), companies working in Mexico posted 10 news releases. Two companies reported exploration advances on their properties, one announced a financing round, other extended warrants and one more granted stock options. One company released drilling results from its advanced property, one other the amalgamation with a subsidiary and one more the agreement to acquire mining concessions. Two companies announced appointments to their boards. ON MEXICO ISSUES, no relevant news. ON EXPLORATION, in Sonora, Canuc Resources commenced exploration at its San Javier project; Aztec Minerals provided a review and plans on its Cervantes property. ON MINING, no relevant news. ON FINANCING, Silver Wolf is extending warrants, and settled debt with shares. Oroco Resource announced a $1 M non-brokered financing. Bear Creek Mining is granting options to an officer.  ON RESOURCES AND DEVELOPMENT, Silver Storm Mining released drill results from La Parrilla, in Durango. ON DEALS AND CORPORATE ISSUES, Chesapeake Gold completed the amalgamation with one of its subsidiaries. Regency Silver entered in an agreement to acquire two claim groups near the San Dimas mine in Durango. Guanajuato Silver announced the appointment of its chief financial officer, and Luca Mining announced the appointment of its chief financial officer and the resignation of Ralph Shearing, founder.  ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUES

  • No Relevant News.

ON EXPLORATION

  • Canuc Resources Corp. commenced geological mapping and sampling at its San Javier Au-Ag project in Sonora. The exploration program is to center on the largest magnetic-high anomaly, measuring 800 by 400 m, and on a donut shaped anomaly 800 m in diameter south-east of the magnetic high. The magnetic high itself is 300 m west of “where magnetite silver veining comes to surface and where old artisanal mine workings were tunneled on magnetite veins which sampled high to bonanza grades of silver”.
  • Aztec Minerals Corp. provided a review of 2023 and its outlook for 2024. On the Cervantes project in Sonora, road cut sampling, Terraspec SWIR data and detailed geological mapping was completed, along with the drilling of 13 RC holes which expanded the California zone gold target to 1 km by 250 m in size. Assay results for the holes is pending, and exploration work continues in preparation to follow up drilling.

ON MINING

  • No Relevant News.

ON FINANCING

  • Silver Wolf Exploration Ltd. received approval from the TSX for the extension of warrants from December 2023 to December 2024. The company also settled an aggregate debt of $30 K by issuing shares.  (Ana Maria, Durango).
  • Oroco Resource Corp. announced a non-brokered private placement to raise gross proceeds of up to $1 M (Santo Tomás, Sinaloa).
  • Bear Creek Mining Corp. approved the granting of 500 K stock options to its recently appointed chief financial officer (Mercedes, Sonora).

ON RESOURCES AND DEVELOPMENT

  • Silver Storm Mining Ltd. announced further drill results from its La Parrilla mine complex in Durango. Highlighted core length intercepts comprise 6.03 m @ 0.17 gpt Au, 166 gpt Ag, 1.1% Pb, 2.1% Zn (including 1.67 m @ 0.07 gpt Au, 334 gpt Ag, 1.7% Pb, 4.0% Zn); 1.22 m @ 0.79 gpt Au, 171 gpt Ag, 2.8% Pb, 7.9% Zn; 14.62 m @ 0.13 gpt Au, 1,151 gpt Ag, 13.8% Pb, 10.2% Zn (including 9.57 m @ 0.11 gpt Au, 1,35 gpt Ag, 18.4% Pb, 12.0% Zn). The results are from the C460 zone on the Quebradillas mine, “The replacement vein is concordant to bedding in the sediments and mineralization is comprised of pyrite, pyrrhotite, galena, sphalerite, arsenopyrite, acanthite, and freibergite”.

ON DEALS AND CORPORATE ISSUES

  • Chesapeake Gold Corp. has completed a vertical short-form amalgamation with the Company’s wholly-owned subsidiary, American Gold Capital Corp., with the amalgamated company adopting the name of Chesapeake Gold Corp., issuing no securities and the same ticker symbol on the OTCQX. “Following completion of the Amalgamation, the Company now holds Metates Resources directly, which in turn holds the shares of the Company’s Mexican subsidiaries without an intervening US subsidiary.” (Metates, Durango).
  • Regency Silver Corp. entered into an option agreement to acquire two contiguous claim groups near the San Dimas mine in Durango. The claims are located 13 km to the West of the San Dimas mine, covering 3,498 hectares that contain numerous artisanal workings and tunnels. Historical sampling has returned values as high as 17 gpt Au, 7,753 gpt Ag; 37 gpt Au, 2,325 gpt Ag, and grab samples by Regency Silver returned 8.95 gpt Au, 304 gpt Ag; 0.49 gpt Au, 1,084 gpt Ag. Regency has to pay US$50 K on Exchange acceptance, US$50 K in 6 months, issue 1 M common shares and pay back taxes and mining filings before March 25, 2025. “In lieu of a royalty, Regency Silver must also pay a US$1M bonus upon a NI 43-101 resource being published, which estimates the San Dimas Claims contain a minimum of 70 million silver equivalent ounces or 1 million gold ounces in the measured or indicated categories”.
  • Guanajuato Silver Company Ltd. announced the appointment of Danny Lee as chief financial officer (El Cubo, Guanajuato).
  • Luca Mining Corp. appointed Lisa Dea as chief financial officer. Ralph Shearing, the founder of the company, resigned from the Board of Directors (Campo Morado, Guerrero).

ON SOCIAL RESPONSIBILITY

  • No Relevant News.

On the image below: Silicified ridges on a project of the Sonoran Desert. Picture by Jorge Cirett.

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

/ Gambusino Prospector / Leave a comment

By Jorge Cirett                                             

During the 51st week of the year (December 18th to December 24th, 2023), companies working in Mexico posted 28 news releases. Three companies reported exploration advances on their properties, two companies released quarterly reports and one other the successful breakthrough of a major tunnel. In a busy week for financing matters, six companies entered, closed, increased or amended their private placements, one company updated the disclosure on its incentive warrant program, another announced its intention to repurchase up to 10% of its outstanding shares and another one settled a debt with shares.  Two companies released drilling results from their advanced properties and one more the completion of a drilling campaign. Two companies announced a merger, one company announced the rent to purchase agreement on a processing plant, one other provided a summary of yearly activities and plans for 2024. A company sold a subsidiary to a local enterprise while other sold a subsidiary to a foreign one. One company announced a board appointment and one more the results of its AGM. ON MEXICO ISSUES, fossil fuels produce 62% of the energy used by the mining industry in Mexico, and 21% of the water is from underground sources. ON EXPLORATION, in Sonora, Colibri Resource released drilling results from Evelyn; Tocvan Ventures plans a 10,000 m drilling program at Pilar; Riverside Resources reported on field work and rock sampling at Cecilia. ON MINING, Starcore International filed its second quarter 2023 report, GoGold Resources released quarterly-yearly report. Torex Gold completed the tunnel connecting the Limon-Guajes operations with the Media Luna project under the Balsas River. ON FINANCING, Endeavour Silver entered into an agreement to sell up US$60 M in shares in a 25-month period. Heliostar Metals updated the disclosure on the closing of its warrant exercise incentive program. Regency Silver announced a non-brokered private placement (CAD$800 K). Silver Viper is to amend its non-brokered private placement. Alamos Gold is to repurchase up to 10% of its stock. Luca Mining closed a CAD$2 M non-brokered private placement. GR Silver Mining settled a $100 K debt with shares. Canuc Resources closed a CAD$2 M non-brokered private placement. Atacama Copper is to increase its non brokered private placement to $12 M.  ON RESOURCES AND DEVELOPMENT, Sierra Madre Gold and Silver filed a technical report on La Guitarra project, in Estado de Mexico. Pan American Silver presented the results of the PEA on La Colorada Skarn project, in Zacatecas. Aztec Minerals completed an RC drilling program at Cervantes, in Sonora. ON DEALS AND CORPORATE ISSUES, Atacama Copper entered into a business combination agreement with TCP1. Santacruz Silver Mining sold a subsidiary to a Mexican enterprise. Xali Gold Corp. entered into a rent to purchase agreement to sell the San Dieguito de Arriba mill in Nayarit to a Mexican company. Bear Creek Mining and Mag Silver appointed officers. Vizsla Silver provided a summary of its 2023 activities and 2024 plans. Sailfish Royalty entered into a share purchase agreement with CMC Metals for the sale of Sailfish’s Mexican subsidiary controlling the Gavilanes project in Durango. Santacruz Silver Mining held its AGM.  ON SOCIAL RESPONSIBILITY, Capstone Copper published its 2022 sustainability report.

ON MEXICO ISSUES

  • Camimex (Cámara Minera de México) informed that 62% of the energy used by the mining industry in Mexico is produced by fossil fuels, and 21% of the water is from underground sources.

ON EXPLORATION

  • Colibri Resource Corp. announced that the recently completed seventeen-hole 2,200 m reverse circulation drilling program at the Evelyn property in the EP project in Sonora has discovered a new zone of mineralization. The six holes on the new West Sahuaro zone intercepted mineralization, with hole length intercepts of 23 m @ 0.35 gpt Au; 66 m @ 0.273 gpt Au; 6 m @ 0.753 gpt Au; 24m @ 0.148 gpt Au; 26 m @ 0.323 gpt Au (including 5 m @ 0.779 gpt Au); 27 m @ 0.252 gpt Au; 37 m @ 0.195 gpt Au; 4 m @ 1.175 gpt Au; 50 m @ 0.180 gpt Au. West Sahuaro was prioritized based on a gold soil anomaly 500 m in length, a coincident mapped structure and IP geophysical interpretation. Relevant intervals from drilling on the Main Zone comprise 10 m @ 0.242 gpt Au; 21 m @ 0.152 gpt Au; 1 m @ 0.351 gpt Au; 1 m @ 0.967 gpt Au.
  • Tocvan Ventures Corp. informed of plans for a 10,000 m drilling program at its Pilar project in Sonora. The program is focused in resource definition, targeting a maiden mineral resource estimate for late 2024. Depending on market conditions, the program could be extended to 20,000 m to include evaluation of targets areas across Pilar and the earlier stage Picacho project, also in Sonora.
  • Riverside Resources Inc. reported field work and rock sampling from the Cecilia project in Sonora, constructing a model of a composite dome system with superimposed veins. Results from 34 rock samples returned up to 7.3 gpt Au, 144 gpt Ag in the Magallanes target area. Agua Prieta, San Jose, North Breccia, Central and East trends are the main structural corridors, interpreted as the surface expression of a rooted rhyolite dome system, with higher grades at the base. All the information gathered is to be used in target delineation for the planned 2024 drill program.

ON MINING

  • Starcore International Mines Ltd. filed the results for the second quarter ended October 31, 2023. During the period, the San Martin mine in Queretaro milled 58 K tonnes averaging 1.42 gpt Au, 14.8 gpt Ag, recovering 85.2% Au, 48.8% Ag, to produce 2.3 K Oz Au, 13.5 K Oz Ag (2.4 K Oz AuEq), with a mine operating cash cost of $1,690 per Oz AuEq. The operating loss in the quarter was $1.03 M whilst cash and short-term investments were $4.7 M at October 31, 2023.
  • GoGold Resources Inc. announced financial results for the year ending September 30, 2023, with the Parral operations in Chihuahua generating $30 M from the sale of $1.4 M Oz AgEq. During the period 706.9 K Oz Ag, 7,032 Oz Au, 615 tonnes Cu (1.52 M Oz AgEq) were produced. Cash at the end of the period of US$95.3 M.
  • Torex Gold Resources Inc. announced the successful breakthrough of the Guajes tunnel which connects the existing operations on the north side of the Balsas River with the resource base of the Media Luna Cluster on the south side, at its Morelos Complex in Guerrero. Advance rates averaged 7.1 m per day since the start of 2023, and 8 m per day last November, which is impressive, given the 6.5 m high by 6.0 m wide dimensions of the tunnel.

ON FINANCING

  • Endeavour Silver Corp. entered into a sales agreement with a syndicate of agents lead by BMO Capital Markets Corp. pursuant to which the company may, at its discretion and from time to time during the 25-month term of the agreement, sell common shares of the company that add up to US$60 M in aggregate gross proceeds (Terronera, Jalisco).
  • Heliostar Metals Ltd. updated its disclosure regarding the closing of its warrant exercise incentive program. “Capitalized terms used but not defined in this news release have the meanings given to them in the Company’s news release dated December 11, 2023”. An additional 18,000 outstanding warrant were exercised pursuant to the incentive program. A total of 17.6 M common shares were issued upon the exercise of 17.6 M outstanding warrants, providing aggregate gross proceeds of $5.3 M. A total of 5.87 M incentive warrants were issued, and 28.76 M outstanding warrants remain (Ana Paula, Guerrero).
  • Regency Silver Corp. announced a non-brokered private placement to raise up to CAD$800 K (Dios Padre, Sonora).
  • Silver Viper Minerals Corp. intends to amend its non-brokered private placement financing to raise up to $2 M in gross proceeds. “Concurrently with the announcement of the Amended Offering, the Company is terminating its previously announced non-brokered private placement pursuant to the Listed Issuer Financing Exemption (the “LIFE”) of National Instrument 45-106 – Prospectus Exemptions (the “LIFE Offering”). In connection with the termination of the LIFE Offering, the Company is withdrawing the offering document that it filed on December 8, 2023, with respect to the LIFE Offering. Purchasers under the Amended Offering should not rely on such offering document.” (La Virginia, Sonora).
  • Alamos Gold Inc. filed and and received acceptance from the Toronto Stock Exchange on a notice of intention to repurchase for cancellation up to 34.58 M class A common shares (10% of the public float) thorough a Normal Course Issuer Bid from December 24, 2023 to December 23, 2024 (Mulatos, Sonora).
  • Luca Mining Corp. closed the CAD$2 M non-brokered private placement previously announced, raising CAD$2 M in gross proceeds, and reserving a 25% over subscription option on the private placement (Campo Morado, Guerrero).
  • GR Silver Mining Ltd. issued 1.34 M shares to settle and aggregate debt of $100.8 K outstanding as October 31, 2023. Directors and officers of the company participated in the debt settlement transactions, receiving an aggregate of 788.9 K shares to settle a $59.2 K debt (Plomosas, Sinaloa).
  • Canuc Resources Corp. closed a non-brokered private placement financing, raising gross proceeds of CAD$2 M (San Javier, Sonora).
  • Atacama Copper Corp. announced the intention to increase the size of its previously announced brokered private placement for aggregate gross proceeds of up to $12 M. The first tranche has been closed with aggregate gross proceeds of $7 M (Yecora, Sonora).

ON RESOURCES AND DEVELOPMENT

  • Sierra Madre Gold and Silver Ltd. filed a technical report with the previously disclosed mineral resource estimate for the La Guitarra project in Estado de Mexico. The estimate includes 3.84 M tonnes @ 146 gpt Ag, 0.96 gpt Au (220 AgEq) in indicated resources containing 18 M Oz Ag, 118 K Oz Au, and 4.1 M tonnes @ 113 gpt Ag, 0.52 gpt Au (153 gpt AgEq) in inferred resources, containing 20.1 M Oz Ag, 68 K Oz Au.
  • Pan American Silver Corp. released the results of a preliminary economic assessment (PEA) on its La Colorada Skarn project in Zacatecas. The PEA envisions a 50 K tonnes per day (tpd) sub-level cave mining method, accessed by decline ramps and two ventilation shafts. Estimated production for the first ten years is 17.2 M Oz Ag, 427 K tonnes Zn, 218 K tonnes Pb, on recovery rates of 84.8% Ag, 93.7% Zn, 84.3% Pb. The estimated initial capital cost is $2,829 M over a six-year construction period, a payback period of 4.3 years, total life of mine (LOM) of $951 M and a cumulative after-tax cash flow of $5,689 M. The estimated mineral resource is 173.6 M tonnes @ 2.79% Zn, 1.32% Pb, 33 gpt Ag in the indicated category and 103.6 M tonnes @ 2.47% Zn, 1.03% Pb, 33 gpt Ag in the inferred category.
  • Aztec Minerals Corp. completed 13 reverse circulation holes for a total of 1,646 m at its Cervantes project in Sonora. The holes were drilled on the California gold zone target, with step out drilling to expand the zone to the north, west, east and south, where previous drilling has intercepted extensive shallow, wide oxide mineralization. “The gold mineralization at Cervantes is characterized by oxidized and unoxidized stockwork veinlets of A, B, and C types and disseminated sulfide sites, with silicification and phyllic alterations, typical of large porphyry Au hosted deposits in similar geological settings. Potassic alteration is present in places and is associated with sulphide mineralization as well.” Geological logging of the RC chips showed evidence of wide zones of oxidized, strongly altered rocks with multiple veinlets. Results are pending.

ON DEALS AND CORPORATE ISSUES

  • Atacama Copper Corp. has entered into a business combination agreement on December 15, 2023 with TCP1 Corp. and 1000723052 Ontario Corp. “a wholly-owned subsidiary of the Company, pursuant to which the Company will acquire all of the issued and outstanding shares of TCP1 in exchange for common shares of the Company which will result in the reverse takeover of the Company by TCP1.” After the business combination the company will consolidate its share capital on 6 to 1 basis. Prior to the closing of the proposed transaction Atacama Copper shall complete the private placement for gross proceeds of CAD$10 M. The net proceeds are to be used to advance exploration programs with focus on Cristina (Chihuahua) and Yecora (Sonora).
  • Santacruz Silver Mining Ltd. announced the sale of its shares in Santacruz Holdings Ltd., “which has 100% ownership in Impulsora Minera Santacruz, S.A. de C.V., a non-core Mexican subsidiary of the Company, to a private Mexican group” (Zimapan, Hidalgo).
  • Xali Gold Corp. entered into a rent to purchase agreement with Grupo Minero WIYA (A Mexican company) to operate the San Dieguito de Arriba (SDA) plant in Nayarit. WIYA agreed to pay Xali US$150 K per month (of which the first US$150 K were paid in early December 2023) for ten months. Upon completion of paying a total of US$1.5 M within 12 months, WIYA will have the right to own the SDA plant, and the obligation to complete all repairs and permitting to get the SDA plant into operation.  The company will share the profits from the transaction with Magellan Acquisition Corp., as each own 50% of the SDA plant (El Oro, Estado de Mexico).
  • Bear Creek Mining Corp. announced the appointment of Mr. Fernando Ragone as chief financial officer (CFO).
  • Vizsla Silver Corp. provided a summary of its 2023 activities and key objectives for 2024. The company completed over 98,000 m of drilling at Panuco, in Sinaloa, expanding and upgrading mineralization at the Copala and Napoleon areas. “Mineralization at Copala has now been traced over 1,770 metres along strike, ~450 metres down dip, and remains open to the north and southeast”. Notable discoveries include the La Luisa and Molino veins, with La Luisa having been traced for 1,670 m along strike and to 450 m of depth, with an average width of 3.21 m. Key objectives for 2024 include an updated mineral resource estimate in January 2024, a potential royalty spinout, the delivery of a maiden PEA in H1 2024, complete an updated metallurgical testing, complete +65,000 m of resource/discovery drilling and completing a 1,100 line Km EM survey and acquire high-resolution multispectral satellite imagery for the district.
  • Sailfish Royalty Corp. entered into a share purchase option agreement with CMC Metals Ltd. granting CMC the option to acquire 100% of the shares of Swordfish Silver Corp. “Swordfish, through Sailfish de Mexico S.A. de C.V., holds the mineral rights in and to the silver exploration project located in the Municipality of San Dimas, State of Durango, Mexico, known as the Gavilanes property”. CMC reimbursed US$27.4 K to Sailfish for project expenses in 2023. In order to exercise the option, CMC has to pay Sailfish US$500 K before the end of March 2024, US$500 K before the end of March 2025, US$500 K before the end of March 2026 and US$2 M before the end of March 2027; issuing 1 M CMC shares upon acceptance by the TSX of the agreement, $700 K in CMC shares on or before the end of March 2024 and $500 K in shares on or before the end of March 2025; also CMC must incur exploration expenses of C$1 M before the end of March 2025, C$1.5 M before the end of March 2026 and C$2.5 M on or before the end of March 2027.
  • Santacruz Silver Mining Ltd. held its annual general meeting on December 20, 2023 (Zimapan, Hidalgo).
  • Mag Silver Corp. appointed Tom Peregoodoff to the board of directors effective January 1, 2024 (Juanicipio, Zacatecas).

ON SOCIAL RESPONSIBILITY

  • Vizsla Silver Corp. published its inaugural sustainability report. Key performance highlights include: The commissioning of a green house inventory and exploration of options to incorporate on-site renewable energy. Bi-annual health fairs and community health campaigns and achieving one million hours of consecutive work hours without a lost time incident. Preparation of the inaugural sustainability report and the use of a new software platform to track and enhance ESG performance (Panuco, Sinaloa).

On the image below: Silicified ridges on a project of the Sonoran Desert. Picture by Jorge Cirett.