The Mining and Exploration News in Mexico: Highlights on the Third Week of May, 2020.

Phyllic alteration

By Miguel A Heredia

During the twenty one week of the year (May 18th to May 24th, 2020), at least 36 press releases were announced by companies working in Mexico, with twelve commenting on Mexican issues, six disclosing deals and corporate issues, five discussing on social issues, four informing on exploration results, three communicating production and financial results, three announcing financing rounds, and three reporting on resources and developments.  ON MEXICO ISSUES, Foreign Direct Investment (FDI) in the Mexican mining sector decreased last year according to government data.  Mexico deemed mining an essential activity, allowing companies to resume production activities. The Undersecretary of Mining, Francisco Quiroga, agreed with the Union Labour leaders on the strategy to guarantee a safe return to the mining operations in the country.  A protocol for reopening companies was defined and only the Mexican Institute of Social Security (IMSS) can approve it or rejected it. Mining companies with operations in Chihuahua signed a letter of commitment before the State Government and the Government of Mexico, to follow the instructions on health and safety at work during the phase of resumption of operations in the so-called “new normality”. Excellon Resources and the FRENTE Metallurgical Mining Union reached some agreements to continue operating the La Platosa mine in Durango. Industrias Peñoles announced the shutdown of its Francisco I Madero Zinc mine in Zacatecas due to difficult mining conditions and low metal prices. ON EXPLORATION, In Sonora, Tocvan and its partner Colibri announced exciting new targets on its Pilar project. In Chihuahua, Kootenay released drill results from the first six of ten holes completed to date at its Columba project. In Sinaloa, Vizsla restarted its exploration and drilling program at its Panuco project.  ON MINING, Mag Silver reported Q1, 2020 financial results (Juanicipio project, Zacatecas). Mexus reported additional gold sales from production at its Santa Elena mine in Sonora. McEwen reported full year 2019 production results from its El Gallo mine in Sinaloa. ON FINANCING, Magna Gold announced a non-brokered private placement to raise gross proceeds of up to $7M (Mercedes project, Son).  Discovery Metals announced that it intends to complete a non-brokered private placement for gross proceeds of up to CAD $25M (Cordero project, Chihuahua).  Mithril announced that its rights issue for capital raising has closed with strong support for both shareholder entitlements and additional shortfall shares (Copalquin project, Durango).      ON RESOURCES AND DEVELOPMENT, Endeavour reported drill results from fourteen holes collared at its Bolaños mine in Guanajuato, eight of which intersected high-grade mineralization in the Melladito Vein. Mag Silver provided an update on its Juanicipio project in Zacatecas. VanGold announced plans to conduct a 1,000 tonnes bulk sample from its Pinguino project in Guanajuato. ON DEALS AND CORPORATE ISSUES, Alamos Gold reported results of its annual general meeting of shareholders (Mulatos mine, Sonora). Argonaut shareholders and Alio securityholders approved merger to create North American diversified Intermediate gold producer (El Castillo mine, Durango). Equinox announced results of its annual general meeting of shareholders (Los Filos mine, Guerrero). Defiance extended its option agreement on its San Acacio project in Zacatecas to 2023. Silver Tiger (former Oceanus Resources) commenced trading under the symbol “SLVR” (El Tigre project, Sonora). Sierra Metals appointed its new CEO (Bolivar mine, Chihuahua). ON SOCIAL RESPONSIBILITY, The Grupo Mexico Foundation donated 5,000 molecular tests for COVID-19, and will be distributing 450,000 protection kits in Mexico City as well as in the states of Mexico, Jalisco and Nuevo Leon. Minera Gorrión, subsidiary of Almaden Minerals and in charge of developing the Ixtaca mine project, in the north of Puebla, donated 1,000 disinfecting gels and 2,000 masks to the Ixtacamaxtitlán Community Hospital, in charge of leading efforts against the epidemic in the region. Minera Media Luna (Torex Gold), will donate MXP $2M to launch a hospital in Iguala, Guerrero, which will exclusively treat patients with COVID-19. Consorcio Minero Peña Colorada S.A. de C.V. , donated MXP $500K to the Integral Development of the Family (DIF)  of Colima State to allocate it to the Emergent Food Attention Program implemented by the government.

ON MEXICO ISSUES

  • Foreign Direct Investment (FDI) in the Mexican mining sector, decreased last year, according to government data. Net FDI in 2019 was USD $592M, down from almost USD $ 650M in 2018, according to data published by the economy ministry. The 2019 figure is the lowest compared to previous years. Spending peaked at USD $ 5.44B in 2013. The industry leaders see a general decline in investment in 2020 due to the COVID-19 pandemic. Mining companies intend to restart operations in June 1, 2020, as part of a gradual reopening of the economy under which the sector has acquired essential status.
  • Mexico, deemed mining an essential activity, allowing companies to resume production activities, six weeks after asking all non-essential business to temporarily close in response to the COVId-19 pandemic. Argonaut, Azure, Compañía Real del Monte, Premier, Newmont, Alamos Gold, Great panther, among others, are some of the mining companies which will be starting activities at its mine operations.
  • The Undersecretary of Mining, Francisco Quiroga, agreed with the Union Labour leaders on the strategy to guarantee a safe return to the mining operations in the country, once the reactivation of this sector was allowed. The mining sector generates 370K direct jobs and 2.3M of indirect jobs throughout the country, which generates benefits for workers and employees. Mining represents an essential sector because it supplies raw materials to practically all industries. On the other hand, Francisco Quiroga has been very active working with mining companies to define, along with the Secretary of Health, Jorge Alcocer Varela, the protocols for a safe reopening in 249 mining municipalities.
  • A protocol for reopening companies was defined by the authorities. Companies must have the authorization of the Mexican Institute of Social Security (IMSS) to restart activities, after remain closed due to the CIVID-19. According to the Technical Guidelines for Health Safety in the Workplace, published this Monday by the Ministry of the Economy (SE), the IMSS will have 72 hours to approve or reject the request.
  • Mining companies with operations in Chihuahua, signed a letter of commitment before the State Government (Governor Javier Corral) and the Government of Mexico (Undersecretary of Mining Francisco Quiroga), to follow the instructions on health and safety at work during the phase of resumption of operations in the so-called “new normality”. Francisco Quiroga added that to close the circle of prevention, the mining industry will be trained in the management of the different equipment that will be put into operation to comply with the protocols set by the State Health Council.
  • Excellon Resources Inc., and the FRENTE Metallurgical Mining Union, reached some agreements to continue operating the La Platosa mine in the Bermejillo community, located in the Mapimí municipality, Durango. It highlights a cut of around 20% in personnel and a technical strike for the next 60 days as the company develops the restructuring process. The official assured that the liquidations of the personnel who will be dismissed will be 100% and in accordance with the provisions of the law, in addition to reaching an agreement with the union so that, while the technical strike is carried out, only 50% of their salary will be paid to the rest of the workers who, due to the pandemic caused by the COVID-19, are in domiciliary protection.
  • Industrias Peñoles S.A.B. de C.V., announced the shutdown of its Francisco I Madero Zinc mine in Zacatecas, due to difficult mining conditions and low metal prices. It stated that it has begun laying off unionized workers in the mine unit and also trying to reassign to others workers and contractors to other mine units. The Francisco I Madero mine started operations in 2001. Peñoles processed in 2019, over 2.3M tonnes to produce 93M Lb Zn and 19.9M Lb Pb.

ON EXPLORATION

  • Tocvan Ventures Corp, and its partner Colibri Resources Corporation, announced new exciting targets generated by an IP survey on its Pilar project in Sonora. “According to the survey data, the Main Zone and the North Hill Zone may be connected and, if confirmed, would be renamed as a mineralization trend. Results also indicate the potential of the northeast-southwest structures connecting the 4-Trench Zone to the Main Zone, Tocvan said”. Geophysical results will be combined with additional surveys to better define drill targets for a phase 2 drilling campaign.
  • Kootenay Silver Inc., released drill results from six of ten holes completed to date at its Columba project in Chihuahua, as part of its 2020 drilling program. Significant drill intersections were encountered in hole CDH-20-045 with 239 g/t Ag, 0.08% Pb, and 0.4% Zn over 4.3m, including 350 g/t Ag, 0.1% Pb, and 0.5% Zn over 2.5m, and including 456 g/t Ag, 0.2% Pb and 0.6% Zn over 1.5m in the F Vein, and 208 g/t Ag, 0.1% Pb, and 0.2% Zn over 3m, including 974 g/t Ag, 0.03% Pb, and 0.3% Zn over 0.5m in a footwall vein; hole CDH-20-046 with 264 g/t Ag, 0.06% Pb, and 0.1%Zn over 6.8m, including 553 g/t Ag, 0.1% Pb, and 0.2% Zn over 2.9m, including 911 g/t Ag, 0.2% Pb, and 0.2% Zn over 1.4m, including 1,585 g/t Ag, 0.3% Pb, and 0.3% Zn over 0.6m, and 689 g/t Ag, 0.2% Pb, and 0.3% Zn over 0.5m, and 219 g/t Ag, 0.04% Pb, and 0.1% Zn over 5m, all in the F Vein; hole CDH-20-047 with 166 g/t Ag, 0.2% Pb, and 0.5% Zn over 15.65m, including 351 g/t Ag, 0.4% Pb, and 1% Zn over 5.97m, including 400 g/t Ag, 0.45% Pb, and 1.2% Zn over 4.97m, including 782 g/t Ag, 1.1% Pb, 3.6% Zn over 1.05, including 305 g/t Ag, 0.1% Pb, and 0.3% Zn over 1.15m, including 219 g/t Ag, 0.4% Pb, and 0.7% Zn over 1.1m, including 432 g/t Ag, 0.5% Pb, and 1% Zn over 0.97m; and hole CDH-20-042 with 115 g/t Ag over 0.3m in a hangingwall of a quartz vein, and 86 g/t Ag 0.02% Pb, and 0.1% Zn over 13m, including 111 g/t Ag, 0.03% Pb, and 0.1% Zn over 5.9m, in the F Vein. These holes tested the F Vein structure along 400 meters of strike length with holes 42 to 45 focusing on gaps in the 2019 drill program, while holes 46 and 47 were step outs along strike.
  • Vizsla Resources Corp., restarted its exploration and recommenced its 14,500m drilling programs at its Panuco project in Sinaloa. Vizsla has tested only five of the initially twenty targets and will continue with two drill rigs to ensure the remaining 10,861m of planned drilling is completed in the 2020 calendar year.

ON MINING

  • Mag Silver Corp., reported Q1, 2020 financial results. It estimated the pre-operative initial capital now at USD $440M as of January, 2018. The company also reported a development expenditure of approximately USD $153.5M (company therefore estimates approximately $286,584 of remaining initial capital on a 100% basis as at March 31, 2020), and an existing cash and other working capital as at March 31, 2020 of USD $6.8M and USD $13.2M respectively (Juanicipio project, Zacatecas).
  • Mexus Gold , reported addition gold sales from production at its Santa Elena mine in Sonora. It sold 47.5Oz Au on May 7th and was processing an additional 45 Oz Au the week of May 18th. Mexus announced that the sales of gold for the month of May are expected to exceed 120 Oz Au.
  • McEwen Mining Inc., reported full year 2019 production results from its El Gallo mine in Sinaloa. It produced 2,700 Oz AuEq (GEO) from residual leaching of the heap leach pad. Beginning with Q42019, the company has ceased relying on, and disclosing, cash costs and AISC per GEO as key metrics for El Gallo mine. Residual leaching will continue for as long as incremental revenue exceeds incremental costs.

ON FINANCING

  • Magna Gold Corp., announced a non-brokered private placement to raise gross proceeds of up to $7M. Net proceeds will be used for working capital purposes in connection with the company´s existing projects (Mercedes project, Sonora).
  • Discovery Metals Corp., announced that it intends to close a non-brokered private placement for gross proceeds of up to CAD $25M. Net proceeds will be used primarily to continue the exploration programs at its Cordero and Coahuila projects in Chihuahua and Coahuila respectively.
  • Mithril Resources Limited, announced that its rights issue for capital raising has closed with strong support for both shareholder entitlements and additional shortfall shares. The company was required to raise a minimum of $1.5M under the rights issue as a condition precedent of the transaction with Sun Minerals Pty Ltd. Fund raised will be used to advance exploration at its Copalquin project in Durango, following completion of the acquisition of Sun Minerals.

ON RESOURCES AND DEVELOPMENT

  • Endeavour Silver Corp., reported drill results from fourteen holes collared at its Bolaños mine in Guanajuato, eight of which intersected high-grade mineralization over minable widths in the Melladito Vein. Significant drill intersections were encountered in hole BN27 with 24.3 g/t Au and 787 g/t Ag (3,217 g/t AgEq) over a true width (TW) of 1.5m, including 91.8 g/t Au and 2,200 g/t Ag (11,380 g/t AgEq) over a true width of 0.20m; hole BN31 with 12.48 g/t Au and 50 g/t Ag (1,298 g/t AgEq) over a TW of 1.1m, including 50.8 g/t Au and 191 g/t Ag (5,271 g/t AgEq) over a TW of 0.2m; and hole BN32 with 7.37 g/t Au and 170 g/t Ag (907 g/t AgEq) over a TW of 2.7m, including 9.47 g/t Au and 327 g/t Ag (1,274 g/t AgEq) over a TW of 0.6m.”The eight drill holes outline a new mineralized zone 100 m long by 200 m deep, open in all directions. It could connect with the historic high-grade San Ramon mine workings immediately west of and the San Pablo mine workings immediately east of the drill holes. This part of the Melladito vein was not previously explored and represents an exciting new area for resource estimation and mine development”.
  • Mag Silver Corp., provided an update on its Juanicipio project in Zacatecas. Highlights include that a detailed engineering is near completion and earthmoving and foundation preparation is well advanced for the construction of the 4,000 tpd beneficiation plant; SAG and Ball mills, flotation cells, all associated vessels, thickeners and ancillary process equipment are now secured on site, progress made with the construction of the flotation plant and infrastructure, and underground development at Juanicipio has now approached 27 km (or 16.9 miles) and is focused on three sub-vertical ramps that descend alongside the mineralization and alongside the conveyor ramp to surface at plant site.
  • VanGold Mining Corp., announced plans to conduct a 1,000 tonnes bulk sample from its Pinguino project in Guanajuato. It entered in an agreement with Endeavour Silver and will be sending the bulk sample to Endeavour’s Bolañitos mill, located approximately 28kmfrom El Pinguico project. “By conducting this large test, the Company will gain valuable metallurgical and precious metal recovery information pertaining to the mineralized material on the El Pinguico property.

ON DEALS AND CORPORATE ISSUES

  • Alamos Gold Inc., announced results of its annual general meeting of shareholders. It also appointed and compensated executives and auditor´s remuneration (Mulatos mine, Sonora).
  • Argonaut Gold Inc., shareholders and Alio Gold Inc. securityholders, approved merger to create North American diversified intermediate gold producer. On closing of the transaction, Argonaut and Alio shareholders will own approximately 76% and 24% of the merged company, respectively, on an issued share basis. The merged company will continue as Argonaut Gold with the ticker symbol AR on the Toronto Stock Exchange (TSX). (El Castillo mine, Durango).
  • Equinox Gold Corp., announced results of its annual general meeting of shareholders. It also appointed auditors and approved executive´s compensation (Los Filos mine, Guerrero).
  • Defiance Silver Corp., announced that it has successfully negotiated with the project vendor its option agreement on its san Acacio project in Zacatecas. The project vendor has agreed to extend the option agreement terms by three years from September 27, 2020 to September, 27, 2023. “Defiance will now be making quarterly payments, over three years, to the property vendor totaling USD $2,278,189, with the final option payment of USD $2,407,461 due September 27, 2023. In accordance with the original agreement, the vendor retains a 2.5% NSR which may be purchased for USD $2,500,000. Should the agreement be terminated prior to September 27, 2023 a break fee equal to 5% of the outstanding option balance shall be paid to the property vendor”.
  • Silver Tiger Metals Inc., (former Oceanus Resources), commenced trading under the trading symbols “SLVR” on the TSXV. There was no change in the share capital of the company. Certificates representing common shares of the company will not be affected by the name and symbol change and will not need to be exchanged (El Tigre project, Sonora).
  • Sierra Metals Inc., announced the appointment of its new CEO effective immediately (Bolivar mine, Chihuahua).

ON SOCIAL RESPONSIBILITY

  • The Grupo Mexico Foundation, donated 5,000 molecular test for the detection of COVID-19 to be applied to patients from all over the state of Chihuahua. Governor of Chihuahua State, Javier Corral, stated that it will allow reducing the time of diagnosis and extending timely attention to the population. In addition, it also will donate 450,000 protection kits to be distributed in Mexico City as well as in the states of Mexico, Jalisco and Nuevo Leon. The kits are personal and contain supplies such as masks, gowns, hats, shoe covers, KN45 masks, gloves, goggles and everything necessary to promote the comprehensive protection of health personnel in hospitals.
  • Minera Gorrión (MG), subsidiary of Almaden Minerals Ltd., and in charge of developing the Ixtaca mine project, in the north of Puebla, donated 1,000 disinfecting gels and 2,000 masks to the Ixtacamaxtitlán Community Hospital, in charge of leading efforts against the epidemic in the region. On the other hand, 1,440 liters of gel and 4,800 face masks were distributed among 15 Rural Medical Units of the IMSS and 9 Health Houses of the Ministry of Health in the municipality. Likewise, MG delivered 1,300 liters of gel and 2,000 covers mouths to the Central Warehouse of Health Services in the state of Puebla to support the efforts led by the Puebla government to counteract the spread of the disease in the state.
  • Minera Media Luna (Torex Gold Resources Inc.), donated MXP $2M to launch a hospital in Iguala, Guerrero, which will exclusively treat patients with COVID-19. The hospital will be soon in operation and will also serve people from Taxco, Huitzuco, Tepecoacuilco and Cocula affected by the coronavirus.
  • Consorcio Minero Peña Colorada S.A. de C.V., donated MXP $500K to the Integral Development of the Family (DIF) of Colima State, to allocate it to the Emergent Food Attention Program, implemented by its government.

 Content like what you have just read can be seen at https://gambusinoprospector.com/ and at LinkedIn’s Mexico Mineral Exploration Group.

On the picture above, phyllic alteration in a porphyry Cu system in a prospect in Oaxaca, Mexico.  Photo by Miguel A Heredia.

 

The Mining and Exploration News in Mexico: Highlights on the Second Week of May, 2020

IMG_9802 - copia

By Jorge Cirett

During the 20th week of the year (May 11th to May 17th, 2020), at least 43 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, Camimex informed 23 mining companies supported 16 States on the Coronavirus emergency. The federal government announced the inclusion of the mining industries in the list of “essential” activities that could be performed under the Coronavirus emergency, starting on 18 May 2020…. only to backtrack a few days later with the announcement that mining companies “can begin to prepare” on 18 May, to start working on 01 June, 2020. Francisco Quiroga, sub-secretary of Mining, stated that the mining industry cannot wait until 01 June, 2020, for reactivation. The Supreme Court will evaluate the impugnation against the reform by which the federal government took control of the Mining Fund. First Majestic has taken steps to sue the federal government under provision of chapter 11 of NAFTA, on grounds of double taxation.  ON EXPLORATION, in Sinaloa, Vizsla Resources released results from seven historic holes from the Plomosas Mine area at its Plomosas project. In Zacatecas, Alien Metals informed on two targets defined with the aid of IP, gravity, magnetic and geochemical surveys at its Donovan 2 property. ON MINING, Santacruz Silver, Great Panther Mining, Torex Gold, Capstone Mining, Alamos Gold, Consolidated Zinc and Newmont announced their coming back to production on 18 May 2020 (the date previously released by the government to end the mining lockdown). Fortuna Silver, Argonaut Gold, Sierra Metals, Starcore International and First Majestic released quarterly results. Excellon Resources will postpone the filing of its interim financial statements. ON FINANCING, Canuc Resources closed a financing round for $100 K., Americas Gold and Silver closed it bought deal financing for C$28.75 M. Silver Viper opened a private placement intending to raise up to C$5 M. Minaurum Gold announced a C$4.2 M financing, concurrent with the previously announced C$5 M financing. Endeavour Silver entered into an agreement to raise up to $23 M for its Terronera project. GR Silver Mining granted 1.38 M options to insiders. Starcore commenced trading on the OTCQB. Oceanus Resources is to change name to Silver Tiger Metals Inc. ON RESOURCES AND DEVELOPMENT, SilverCrest Metals released infill and expansion results on the high grade footprint of the Babi Vista vein, which by now stands at 400 m long by 200 m in height, 1 m wide, grading 20.26 gpt Au, 1,590 gpt Ag. GR Silver Mining released high-grade results from historic drill holes at its Plomosas project in Sinaloa. GoGold Resources released drill hole results from the Los Ricos South project in Jalisco. Golden Minerals filed a PEA on its Velardeña properties in Durango. Sierra Metals filed a technical report on the Bolivar mine, Chihuahua. ON DEALS AND CORPORATE ISSUES, Vizsla Resources renegotiated the terms of the Rio Panuco agreement, reducing by $4.2 M the payments to be made before early 2022. Sonoro Metals withdrew the technical report on Cerro Caliche, Sonora, as required by the British Columbia Securities Commission. Discovery Metals announced the resignation of Jose Vizquerra from the board of directors. ON SOCIAL RESPONSIBILITY. Minera San Julian, Capstone, Fresnillo PLC, Endeavour Silver, Argonaut Gold, Peña Colorada, La Cantera Desarrollos Mineros, First Majestic, Newmont and Grupo Mexico informed on donations ad work realized to aid communities, mainly on subjects related to the Coronavirus emergency, like medical supplies and equipment (even the construction of a hospital), but comprising also a large array of investments and measures that benefit the mining communities.

ON MEXICO ISSUES

  • Camimex informed 23 mining companies working in Mexico have supported 16 States in the country, with activities and donations of medical supplies to aid communities in the Coronavirus emergency. Mexico was the only country in North America that did not place mining within the essential industries to continue activities during the lockdown.
  • The Consejo de Salubridad General (General Health Council) approved four agreements for the gradual lifting of measures to fight the Coronavirus, one of which is the declaration of mining as part of the essential industries that are permitted to continue work during the Covid-19 emergency (Important.- See note below).
  • Adding to the confusion on government announcements, the sub-secretary of health prevention and promotion Hugo López Gatell informed mining, construction and automobile industries are to start activities until 01 June 2020. Most mining companies had already announced the commencement of activities on 18 May, 2020, as the mining industry had been declared essential, a term which has allowed other industries to continue activities during the Coronavirus emergency. In this twist of events, the sub-secretary said these industries can prepare for starting work on 01 June, 2020, and that further notice on physical modification of workspaces, schedules, and distance between workers, among other regulations to be announced on 18 May, 2020.
  • Francisco Quiroga, sub-secretary of Mining, stated that the mining industry cannot wait until 01 June, 2020, for reactivation. This after the Health Secretariat established a two week preparation period for re-establishment of operations. “We cannot wait to the termination of the pandemic to get back to work. In mining we return to operate adhering to strict protocols and sanitary measures: since the people leaves home until they return”.
  • The Supreme Court will evaluate (after five months wait) the impugnation against the reform by which the federal government took control of the Mining Fund. The Supreme Court also has to rule in the case of Puebla’s indigenous communities against the granting of mining concessions in their ground.
  • First Majestic Silver Corp. “has taken steps to serve the Government of Mexico with a Notice of Intent to Submit a Claim (“Notice”) under the provisions of Chapter 11 of North American Free Trade Agreement (“NAFTA”)”. The company claims the SAT (Servicio de Administración Tributaria, equivalent to the IRS in USA), has shown a strong deviation from several international treatises on double taxation. “The service of this Notice by the Company on the Government of Mexico initiates a 90-day process for the Government of Mexico to enter into good faith and amicable negotiations with the Company to resolve the current dispute”.

ON EXPLORATION

  • Vizsla Resources Corp. released drilling results from seven holes on the Honduras vein and surface and underground sampling of the Animas, Cordon de Oro and Napoleon vein corridors at its Panuco project in Sinaloa. Highlighted drill intercepts comprise 4.35 m @ 208 gpt Ag, 0.83 gpt Au (including 1.0 m @ 432 gpt Ag, 1.55 gpt Au) and 2.60 m @ 151 gpt Ag, 1.02 gpt Au (including 0.70 m @ 294 gpt Ag, 2.09 gpt Au). Highlighted surface and underground sampling results comprise: 3.2 m @ 44 gpt Ag, 16.52 gpt Au (including (1.0 m @76 gpt Ag, 38.20 gpt Au); 11.90 m @ 140 gpt Ag, 1.67 gpt Au (including 2.90 m @ 249 gpt Ag, 3.84 gpt Au); 4.20 m @ 230 gpt Ag, 3.13 gpt Au (including 1.20 m @ 655 gpt Ag, 10.15 gpt Ag).
  • Alien Metals Ltd. informed excellent targets have been generated at its Donovan 2 project in Zacatecas, from an IP survey, coincident with previous geophysical and sampling results. The two stronger targets comprise the North zone prospect known as Cerro de la Cruz where ground magnetics, gravity and IP geophysics all returned coincident anomalies and the Central prospect known as Los Alomos where historical anomalous rock samples and the ground IP geophysics returned coincident anomalies.

ON MINING

  • Fortuna Silver Mines Inc. released financial results for the first quarter of 2020, without elaborating on figures from its Mexican operations. “As at March 31, 2020, the Company had $88.5 million of cash and cash equivalents…. and the company’s $150 M bank credit facility had been fully drawn”. AISC per silver ounce in the San Jose mine in Oaxaca was $10.70.
  • Argonaut Gold Inc. released its operating and financial results for the first quarter of 2010, including figures from its Mexican operations. The El Castillo Complex in Durango produced 28,508 Oz AuEq at a cash cost of $941, with 5.28 M tonnes of waste moved and 5.63 M tonnes of ore mined and 4.68 M tonnes placed on the heaps @ 0.44 gpt Au, producing 27,270 Oz Au, 99 K Oz Ag. La Colorada in Sonora produced 13,028 Oz AuEq at a cash cost of $1,021 per Oz Au, with 4.68 M tonnes of waste moved, and 947 K tonnes of ore mined and 966 K tonnes loaded to the leach pads @ 0.35 gpt Au, producing 13,028 Oz Au, 54.2 K Oz Ag. The company is preparing to restart activities at its two operating units as restrictions to work on the Coronavirus emergency ease.
  • Sierra Metals Inc. presented consolidated results for the first quarter of 2020. The Bolivar Mine processed a record 377.5 K tonnes in Q1 2020, representing a 43% increase over Q1 2019. Copper represents 40% of Sierra Metals’ revenue in Q1 2020, as the Company is trending towards copper as its main product as a percentage of revenue. During the period 8,048 m were drilled at Bolivar, Chihuahua, whereas at Cusi, also in Chihuahua, 2,172 m were drilled. The company held 36.9 M in cash and cash equivalents by the end of the period, with $49.2 M in working capital.
  • Starcore International Mines Ltd. announced production results for the fourth quarter of fiscal year 2019, ended April 30, 2020, at its San Martin mine in Queretaro. During the quarter 56.k tonnes were milled @ 1.65 gpt Au, 25.3 gpt Ag, recovering 88.7% Au, 55.8% Ag, to produce 2,925 Oz AuEq.
  • Santacruz Silver Mining Ltd. commenced preparations to resume mining and milling operations at the Zimapan mine in Hidalgo on May 19, 2020.
  • Great Panther Mining Ltd. intends to restart operations in Mexico this month in accordance with the Mexican federal government’s announcements of the lifting of restrictions that have suspended mining operations in the country since the start of April (Topia, Durango).
  • Excellon Resources Inc. will postpone the filing of its interim financial statements and management’s discussion and analysis for the first quarter of 2020, relying on the blanket relief granted by Ontario Instrument 51-502, which provides for up to a 45-day extension for periodic filings (Platosa, Durango).
  • Fortuna Silver Mines Inc. presented first quarter 2020 results. At San José, in Oaxaca, 246.8 K tonnes were milled, averaging 2,837 tonnes per day (tpd) @ 216 gpt Ag, 1.33 gpt Au, with recoveries of 92% Ag, 91% Au, to produce 1.57 M OZ Ag, 9,630 Oz Au at production cash cost $7.50 per Oz Ag and AISC $10.70 per Oz Ag.
  • First Majestic Silver Corp. announced consolidated financial results for the first quarter 2020. Restart procedures are being taken after the announcement of the lifting of the Coronavirus emergency for mining companies, to start work by 18 May, 2020. The company ended the quarter with $145.2 M in cash and cash equivalents.First Majstic Q1 production1
  • Torex Gold Resources Inc. plans to resume full production at its El Limón Guajes mining complex in Guerrero by the end of this month, following the designation of mining as an essential activity by the government.
  • Capstone Mining Corp. announces it has safely started ramping up operational activities at its Cozamin mine in Zacatecas, following the Mexican federal government announcement on May 12, 2020 that mining is an essential industry.
  • Alamos Gold Inc. expects to begin ramping up full operations at its Mulatos mine in Sonora on May 18, 2020. Following the Mexican government’s declaration of mining as an essential activity.
  • Consolidated Zinc Ltd. advised that the Mexican Government has instructed that all mining is to be considered an essential service, allowing the Plomosas mine and Aldama concentrator to re-commence operations from 18 May 2020. It is expected the ramp up back to full production will be completed by the end of May.
  • Newmont Corp. expects to begin safely ramping up operations at Peñasquito in Mexico on May 18 following the government’s designation of mining as an essential activity. “On April 22, Peñasquito reached a definitive agreement with the San Juan de Cedros community (one of 25 neighboring communities) in Zacatecas, Mexico on land use, water availability, infrastructure and social investments. This includes access to 10,000 hectares for exploration and operational purposes, and resolves all outstanding issues with the community. The agreement was reached with the support of Mexico’s Ministry of Interior (SEGOB) and representatives of the State of Zacatecas and was signed by elected representatives of the Cedros community. The agreement is expected to be ratified in a General Assembly once COVID-19 restrictions on gatherings are lifted by the government. The agreement expressly states that any future disputes will be resolved through dialogue and free of blockades”.

ON FINANCING

  • Canuc Resources Corp. closed a non-brokered private placement for gross proceeds of $100 K (San Javier, Sonora).
  • Starcore International Mines Ltd. announced its shares have been approved to commence trading on the OTCQB. “This listing on the OTCQB compliments the Company’s listings on the Toronto Stock Exchange and the Frankfurt Stock Exchange” (San Martin, Queretaro).
  • Americas Gold and Silver Corp. closed its previously announced bought deal financing with a syndicate of underwriters co‐led by Cormark SecuritiesInc. and Desjardins Capital Markets for aggregate gross proceeds of C$28.75 M (Cosalá, Sinaloa).
  • Consolidated Zinc Ltd. has established an on-line application for shareholders to subscribe for the new shares under the Entitlement Offer 23 April 2020 (Plomosas, Chihuahua).
  • Silver Viper Minerals Corp. entered into a letter of engagement with Eight Capital and Red Cloud Securities Inc. for a private placement aiming to raise C$5 M in gross proceeds (La Virginia, Sonora).
  • GR Silver Mining Ltd. granted incentive stock options to certain directors, officers, and consultants to purchase up to an aggregate of 1.38 M shares of the Company (Plomosas, Sinaloa).
  • Minaurum Gold Inc. announced that, concurrent with its C$5 M marketed private placement announced on May 4, 2020, the company has agreed to issue up to a further 10.5 M units to raise additional C$4.2 M in gross proceeds (Alamo Silver, Sonora).
  • Endeavour Silver Corp. entered into a sales agreement with BMO Capital Markets, CIBC Capital Markets, H.C. Wainwright & Co., TD Securities, Roth Capital Partners, B. Riley FBR and A.G.P., to sell common shares to raise gross proceeds of up to $23 M. No offers of sales of common shares will be made on the TSX or other trading markets in Canada. Net proceeds will be used to advance its Terronera project in Jalisco.
  • Mithril Resources Ltd. advised that its 1 for 1 Non-Renounceable Rights Issue closed at 5:00pm on 14 May 2020 (Copalquin, Durango).
  • Oceanus Resources Corp. announced that it is changing its name to Silver Tiger Metals Inc. on the TSX Venture Exchange. The company also announced a non-brokered private placement to raise up to $675 K (El Tigre, Sonora).

ON RESOURCES AND DEVELOPMENT

  • SilverCrest Metals Inc. is to restart exploration and development work at its Las Chispas Project in Sonora by mid-May, using strict COVID-19 protocols. The company also released in-fill and expansion drill results for the BaBi Vista vein at Las Chispas. The updated high-grade footprint is 400 m along vein strike by 200 m in height, grading 20.26 gpt Au and 1,590 gpt Ag over an average true width of 1.0 m, and open in most directions. Highlighted results from the last drill holes comprise true width intervals of 0.6 m @ 3.29 gpt Au, 216 gpt Ag; 0.9 m @ 12.44 gpt Au, 1,103 gpt Ag; 0.6 m @ 1.17 gpt Au, 93 gpt Ag; 0.4 m @ 2.0 gpt Au, 232 gpt Ag; 1.8 m @ 78.83 gpt Au, 5,235 gpt Ag; 0.4 m @ 3.12 gpt Au, 302 gpt Ag; 0.4 m @ 2.05 gpt Au, 148 gpt Ag; 0.4 m @ 4.72 gpt Au, 401 gpt Ag.
  • GR Silver Mining Ltd. reported high-grade drill results at its Plomosas project in Sinaloa. The results are from holes in the Plomosas mine area, drilled by previous operators of the property. Highlighted true width (TW) intervals comprise 1.74 m @ 118 gpt Ag, 30.64 gpt Au, 0.1% Pb, 0.1% Zn; 1.30 m @ 4.75 gpt Au; 4.23 m @ 57 gpt Ag, 1.35 gpt Au, 3.7% Zn, 3.3% Pb; 3.13 m @ 31 gpt Ag, 4.54 gpt Au, 5.8% Zn, 5.2% Pb; 4.96 m @ 52 gpt Ag, 2.60 gpt Au; 0.7% Zn, 3.1% Pb; 0.98 m @ 850 gpt Ag, 0.14 gpt Au, 0.8% Zn, 1.2% Pb; 14.09 m @ 185 gpt Ag, 0.07 gpt Au, 0.6% Zn, 0.8% Pb; 2.70 m @ 240 gpt Ag, 0.05 gpt Au, 0.9% Zn, 1.6% Pb; 3.42 m @ 240 gpt Ag, 0.05 gpt Au, 1.0% Zn, 1.6% Pb; 4.28 m @ 760 gpt Ag, 2.3% Zn, 1.5% Pb; 12.15 m @ 225 gpt Ag, 0.43 gpt Au, 3.0% Zn, 3.6% Pb; 1.45 m @ 1,659 gpt Ag, 0.19 gpt Au, 1.2% Zn, 3.7% Pb; 1.93 m @ 96 gpt Ag, 4.11 gpt Au, 0.8% Zn, 5.9% Pb.
  • GoGold Resources Inc. released assay results from 15 diamond drill holes at the Los Ricos South project in Jalisco. Highlighted core length intervals comprise 14.6 m @ 1.64 gpt Au, 136 gpt Ag; 15.7 m @ 0.52 gpt Au, 22 gpt Ag; 18.0 m @ 0.65 gpt Au, 85 gpt Ag; 19.0 m @ 0.89 gpt Au, 208 gpt Ag (including 5.4 m @ 2.28 gpt Au, 559 gpt Ag and 3.2 m @ 3.13 gpt Au, 858 gpt Ag); 11.5 m @ 0.86 gpt Au, 61 gpt Ag.
  • Golden Minerals Co. announced the filing on SEDAR of a preliminary economic assessment (PEA) and accompanying technical report for its Velardeña properties in Durango.
  • Sierra Metals Inc. filed a 43-101 compliant technical report on the Bolivar mine in Chihuahua. “There are no material differences in the Report from those results disclosed in the Company’s press release dated March 31, 2020”.

ON DEALS AND CORPORATE ISSUES

  • Vizsla Resources Corp. renegotiated the terms of the Rio Panuco option agreement, extending it for one more year. The Silverstone option period has been extended into 2022 and the total Panuco mining district option payments between now and the beginning of 2022 will be reduced by over USD$4.1 M, from USD$5.63 M to USD$1.48 M. The total Panuco and Silverstone agreement is for USD$43.08 M in seven years.
  • Sonoro Metals Corp. withdraws Cerro Caliche project development report filed on April 28, 2020, as a result of a review by the British Columbia Securities Commission. “The Company is amending the Report to correct problematic technical disclosures, and expects to publish a revised version in the next week” (Cerro Caliche, Sonora).
  • Discovery Metals Corp. announced that Mr. Jose Vizquerra has resigned as a director of the company to focus on other professional commitments (Cordero, Chihuahua).

ON SOCIAL RESPONSIBILITY

  • Minera San Julián (Fresnillo PLC), donated 20 tonnes of non-perishable food to the community of Guadalupe y Calvo, Chihuahua, as well as 2,300 face masks.
  • Capstone has donated approximately $150,000 pesos in Hacienda Nueva, Zacatecas. Food supplies and sanitizers are among the articles delivered.
  • Fresnillo PLC is to finish construction of the Covid-19 Hospital, in Fresnillo, Zacatecas by the end of May.
  • Fresnillo PLC donates medical equipment to the IMSS and General Hospital in Caborca, Sonora. The supplies include face masks, disinfectant gel and N95 face masks.
  • Endeavour Silver informed that during 2019 70% of all training involved safety education; received the “Caso de Plata” safety award at Guanacevi, Durango; Completed an average of 47 hours of training for each employee; supported 118 students with scholarships; sponsored several events to engage with over 1,000 locals in communities near Terronera, in Jalisco; fully funded a multi-use recreational facility for El Cubo community; planted 51,000 trees in reforestation projects and paid $5 M in various taxes.
  • Argonaut Gold Inc. informed it has delivered its 3,000th academic scholarship in Mexico, has initiated a local program with the community of Cerro del Gallo for the cleaning of the San Antón de las Minas River in Guanajuato, provided 150 food support pantries for families in San Juan del Rio in Durango and held the opening ceremony for the Argonaut Community House in La Colorada, Sonora, a center that the company donated to the community that is open for local stakeholders to interact with Argonaut team members and attend courses.
  • Peña Colorada donated 1,000 lab coats for doctors and 1,000 K95 face masks in Colima.
  • La Cantera Desarrollos Mineros installed the community lunch room in the El Encino neighborhood, in Guanajuato. The objective, partnering with the Municipality, is to assist the most needed with food supplies during the Coronavirus emergency; more than 60 families were serviced on the first day of operation.
  • First Majestic delivered 900 health sets to inhabitants of Tayoltita, Durango.
  • Newmont and the Zacatecas State signed an agreement to fight Covid-19. The company already has an integrated plan accepted by the Mining Sub-Secretariat, with a health perimeter and a protocol to follow should a Covid-19 positive case presents in the area. More than 24 tonnes of food has been delivered to persons in need on 25 communities, and Mx$5.25 M have been invested in the strengthening of hospital capacity; furthermore, 500 Covid-19 test kits were donated to the Health Secretariat and ventilators and screens are to be delivered to the desert health clinics.
  • Grupo Mexico and Cemza donate medical equipment in Campeche. The two groups donated medical equipment and supplies to the General Hospital “María del Socorro Quiroga Aguilar”.

Content like what you have just read can be seen at https://gambusinoprospector.com/ and at LinkedIn’s Mexico Mineral Exploration Group.

On the image below: Quartz-graphite vein, Hermosillo District, Sonora. Picture by Jorge Cirett.

IMG_9802 - copia

The Mining and Exploration News in Mexico: Highlights on the First Week of May, 2020.

Bladed calcite in an epithermal vein system

By Miguel A Heredia

During the nineteen week of the year (May 4th to May 10th, 2020), at least 45 press releases were announced by companies working in Mexico, with eleven communicating production and financial results, seven announcing financing rounds, seven disclosing deals and corporate issues, six reporting on resources and developments, six discussing issues on social responsibility, five commenting on Mexican issues, and three informing on exploration results.  ON MEXICO ISSUES, Americas Gold and Silver reported that its Cosalá operation in Sinaloa continue to be illegally occupied. The General Direction of Mines announced that all mining procedures were suspended until May 30, 2020. Peñoles concluded the construction of its Capela mine in Guerrero with a total investment of USD $334M, of which USD $83.9M were exercised in 2019. Gold mining companies in Mexico are preparing for a solid second semester. ON EXPLORATION, In Sonora, Ridgestone announced that it has completed the first three holes of its ongoing 1,500m drill program at its Rebeico Au-Cu project and Aztec provided an updated 2020 strategic plan and outlook on its Cervantes project. In Chihuahua, Radius reported rock chip sampling results from its recently acquired Plata Verde project.   ON MINING, Avino, Endeavour, GoGold, Gold Resource, Golden Minerals, Great Panther, Hecla, Newmont, Pan American, Premier, and Torex reported production and financial results from their Mexican mining operations. ON FINANCING, Americas Gold and Silver entered in a bought deal public offering for net proceeds of approximately CAD $25M (Cosalá mine, Sinaloa). Fortuna Silver announced proposed amendments to financial covenants contained in its USD $150M credit facility (San Jose mine, Oaxaca). GR Silver entered firstly into a bought deal brokered private placement to raise aggregate gross proceeds of $6,021,000, and later the company upsized it to $8.1M (San Marcial and Plomosas projects, Sinaloa). Minaurum announced a private offering to raise up to CAD $5M (Alamos Silver project, Sonora).    Mithril announced that it is conducting a capital raising by way of a non-renounceable rights issue to shareholders for a minimum gross proceeds of A $1.5M and a maximum of A $2.46M (Copalquin project, Durango). Magna Gold entered into an amendment to include the closing of a non-brokered private placement for gross proceeds of a minimum of $1.8M and a maximum of $2M (San Francisco mine, Sonora).   ON RESOURCES AND DEVELOPMENT, Discovery Metals released results from eight diamond drill holes collared at its Cordero project in Chihuahua. GR Silver announced historical drilling results from its Plomosas Silver project and provided an update on its ongoing exploration program at its San Marcial project, both located in Sinaloa. Golden Minerals completed PEA´s for its Rodeo and Velardeña projects in Durango. ON DEALS AND CORPORATE ISSUES, Agnico announced election of directors during its annual and special meeting of shareholders (Pinos Altos, Chihuahua). Alio Gold completed the sale of its San Francisco mine in Sonora to Magna Gold. Argonaut and Alio received positive recommendations of its proposed merger announced on March 30, 2020 (El Castillo mine, Durango). Azucar Minerals granted stock options to certain directors, employees and consultants (El Cobre project, Veracruz). Xtierra received TSXV conditional approval for the acquisition of Minera Portree (Bilbao project, Zacatecas). Pan American Silver released its 2019 sustainability report (La Colorada mine, Zacatecas). ON SOCIAL RESPONSIBILITY, Chihuahua Mining Cluster donated MXP $200M to the Mexican Red Cross. Esperanza Silver de México (Alamos Gold), delivered protective overalls to doctors and nurses at the IMSS Regional hospital 1 in Cuernavaca. First Majestic delivered pantries to five Ejidos from the Municipality of Ocampo, Coahuila. Fresnillo plc joined donated medical equipment to hospitals in Sonora. Grupo Mexico, in coordination with the Torreón City Council, delivered 300 pantries and disinfectant products to residents of a neighborhood near its Met-Mex Peñoles metallurgical plant. Minera San Julian (Fresnillo plc), will provide mask to the Municipality of San Julian, Chihuahua. Aura Minerals, in coordination with the municipal authorities of Concepción Del Oro Zacatecas, has helped to implement measures designed to support the communities in this difficult time. Compañia Minera Pangea (McEwen Mining) donated cleaning kits to 109 families of seven communities near of its El Gallo mine in Sinaloa.

ON MEXICO ISSUES

  • Americas Gold and Silver, reported that its Cosalá operation in Sinaloa continue to be illegally occupied and stated that “while the company cannot negotiate with the self-interested representatives of this illegal action, it is optimistic that a legal a legitimate labour representative for its workers will be identified, and the mine will be in a position to re-open after any COVID-19 restrictions are lifted”.
  • The General Direction of Mines, announced that all the mining procedures were suspended until May 30, 2020 due to the COVID-19 pandemia. “For the foregoing, the holders of mining concessions are informed that the obligation to present the report during May to verify the execution of the exploration or exploitation works, in the terms of articles 27, fraction I, 28, 29, 30 and 31 of the Mining Law, and 63 to 66 of its regulations, the term for its presentation is suspended, until May 30, 2020”. The deadline for receipt of the report will be now from June 01, 2020 to June 30, 2020. This postponement was published in the Official Gazette of the Federation and is based on article 28 of the Federal Law of Administrative Procedure.
  • Peñoles Group, finalized the construction of its Capela mine in Guerrero with a total investment of USD $334M, of which USD $83.9M were exercised in 2019. This new unit has a grinding and processing capacity of 4,500 tons of ore per day, to produce an annual average of 4.7M Oz Ag, 89.6M Lb Zn, 19.3M Lb Pb, and 15.7M Lb Cu contained in Pb, Zn, and Cu. It will also generate a total of 650 jobs.
  • Gold Mining companies in Mexico, are preparing to reactivate their activities after quarantines applied by the government to achieve profitable production amid the multi-year records that commodity prices have broken. The timing and success of reactivations will largely depend on the evolution of the pandemic. As operations could resume in May, the mines are in good shape to take advantage of healthy yellow metal prices, although social distancing measures are likely to affect productivity and costs.

ON EXPLORATION

  • Ridgestone Mining Inc., announced that it has completed 435.7m on the first three holes of the ongoing 10 holes, 1,500m diamond core drilling program at its Rebeico Au-Cu project in Sonora. The three first holes were collared at the New York Zone where high grade Au-Cu mineralization has been sampled on surface. All holes present visible sulphide mineralization. Assay results are pending and will be released when available.
  • Aztec Minerals Corp., provided an updated 2020 strategic plan and outlook on its Cervantes project in Sonora. During Q2, 2020 the company plans to finalize the JV agreement with Kootenay Silver, finalize the interpretation of 3-D geophysics conducted in 2019, and advance exploration on near surface oxide Au mineralization and deeper porphyry sulphide Au-Cu targets. In Q3, 2020, Aztec plans to extend detail mapping and sampling of the Purisima West, Estrella, Jacobo, Brazil, and other targets at its Cervantes project, and plan and obtain permits for phase 2 drilling program on its California and Purisima targets. In Q4, 2020 the plan is to commence phase 2 drilling program on these two targets.
  • Radius Gold Inc., reported results of 35 rock chip samples collected at its recently acquired Plata Verde project in Chihuahua. Highlights include 142g/t Ag over 64m at Mina Mojonera, including 350 g/t Ag over 12m. “At Plata Verde, Ag mineralization occurs as massive to crustiform banded barite calcite with Ag chlorides, sulphosalt minerals and native Ag infilling and cementing fractures and breccia within a basaltic/andesite extrusive volcanic”. At Mina Real, located 150m south of Mina Mojonera, 75 rock chip samples were collected from the walls and remaining pillars with Ag grades varying from 8 and 730 g/t Ag, with an average grade of 276 g/t Ag. Minas Mojonera and Real define a zone of Ag mineralization approximately 550m long by 200m wide, with the south portion apparently displaced by a large fault, and largely covered by post-mineral rhyolite ignimbrites. Radius is planning to run an airborne magnetic survey to help define the extension of the host rocks under cover.

ON MINING

  • Avino Silver & Gold Mines Ltd., released Q1, 2020 production and financial results from its Avino mine in Durango. It processed 164,096 tonnes of 0.4 g/t Au, 57 g/t Ag, and 0.57% Cu to produce 1,531 Oz Au, 267K Oz Ag and 1.8M Lb Cu (684K Oz AgEq), with metallurgical recoveries of 73%, 89%, and 86% respectively, at cash cost of USD $9.83, and AISC of USD $14.88 per Oz AgEq payable.  The company reported revenues of USD $7.12M, mine operation income of USD $843K, cash of $6.7M, working capital of USD $1075M, an EBITDA and adjusted EBITDA of USD $372K  and USD $391K respectively.
  • Endeavour Silver Corp., presented consolidated production and financial results from its Guanacevi mine in Durango, Bolañitos mine in Guanajuato, and El Compas mine in Zacatecas. Endeavour produced 857.7K Oz Ag and 8,476 Oz Au for 1.5M Oz AgEq at an 80:1 Ag: Au ratio or 1.8M Oz AgEq at 110:1 ratio. Cash cost of $7.85 and AISC of $18.38 per Oz payable Ag, both net of Au credits. The company reported an income of $21.9M from the sale of 665.5K Oz Ag and 7,454 Oz Au at average realized prices of $15.33 per Oz Ag and $1,633 per Oz Au.
  • GoGold Resources Inc., reported Q1, 2020 production and financial results from its Parral Tailings project, Chihuahua. It processed 367K tonnes to produced 601K Oz AgEq, at cash cost of USD $12.33 and AISC of USD $15.10 per Oz AgEq. GoGold reported an income of $USD $8.6M, and cash of USD $19.1M.
  • Gold Resource Corporation, announced Q1, 2020 production and financial results from its Oaxaca mining unit, Oaxaca. The company milled 174.5K tonnes to produce 6,450 Oz Au, 402.5K Oz Ag, 1.1M Lb Cu, 5.6M Lb Pb, and 13.1M Lb Zn, at cash cost of $918 and AISC of $1,229 per Oz AuEq sold.
  • Golden Minerals Company, announced its financial results for the period Q1, 2020. The company reported revenue of USD $1.2M and net operating margin of USD $0.6M related to the lease of its oxide plant. It also reported cash and cash equivalents balance of USD $ 2.2M.
  • Great Panther Mining Limited, released Q1, 2020 consolidated production and financial results from its Topia, Durango and Guanajuato mine complex, Guanajuato. The company milled 68,965 tonnes of 318 g/t AgEq.
  • Hecla Mining Company, reported Q1, 2020 production and financial results from its San Sebastian mine in Durango. Hecla produced 346,625 Oz Ag and 2,802 Oz Au, at cash cost of $6.91 and AISC of $9.59 per Oz Ag produced.
  • Newmont Corporation, produced 87K Oz Au at AISC of $769 per Oz Au sold, or 288K Oz AuEq at AISC of $841 per Oz AuEq sold.
  • Pan American Silver Corp., presented Q1, 2020 production and financial results from its La Colorada mine in Zacatecas and Dolores mine in Chihuahua. At La Colorada, Zacatecas the company produced 1.6M Oz Ag and 1.1K Oz Au, at cash cost of USD $7.23 and AISC of USD $9.98 per Oz Ag produced. At Dolores, Chihuahua it produced 1.23M Oz Ag and 27.1K Oz Au, at AISC of USD $23.29 per Oz produced.
  • Premier Gold Mines Limited, released Q1, 2020 production and financial results from its Mercedes mine in Sonora. Premier milled 162,408 tonnes of 2.4 g/t Au and 27 g/t Ag to produce 11,587 Oz Au and 52.2K Oz Ag, with metallurgical recoveries of 93.9% and 37.1% respectively, at cash cost of USD $1,282 and AISC of 1,883 per Oz Au per Oz Au sold.
  • Torex Gold Resources Inc., reported Q1, 2020 production and financial results from its El Limon Guajes mining complex in Guerrero. It produced 108.5K Oz Au at cash cost of $794 and AISC of $975 per Oz Au sold. Torex reported an EBITDA and adjusted EBITDA of $39.4M and 67.4M respectively, and cash flow from operations of $29.5M.

ON FINANCING

  • Americas Gold and Silver Corporation, announced a bought deal public offering for gross proceeds of approximately CAD $25M (Cosalá mine, Sinaloa).
  • Fortuna Silver Mines Inc., provided an update to amend the financial covenants contained in its USD $150M credit facility. The credit facility requires the company to maintain a total debt to EBITDA ratio of not greater than3:1. As of the financial year ended December 31, 2019, the total debt to EBITDA ratio was 1.7:1. Fortuna has entered into discussions with its senior lenders under the credit facility, and obtained agreement in principle to amend the financial covenants. The amendment to the credit facility is subject to the completion of definitive documentation between the parties (San Jose mine, Oaxaca).
  • GR Silver Mining Ltd., entered into a bought deal brokered private placement with a syndicate of underwriters for aggregate gross proceeds of $6,021,000. The company also granted the underwriters an option to purchase more stock for additional gross proceeds of $903,150. Later on, the company upsized it to $8.1M (San Marcial and Plomosas projects, Sinaloa).
  • Minaurum Gold Inc., announced a private offering to raise gross proceed up to CAD $5M. Net proceeds will be used for the exploration of its Alamos Silver project in Sonora and for working capital purposes.
  • Mithril Resources Limited, announced that it is conducting a capital raising by way of a non-renounceable rights issue to shareholders for a minimum gross proceeds of A $1.5M and a maximum of A $2.46M. Net proceeds will be used primarily to advance exploration at its Copalquin project in Durango.
  • Magna Gold Corp., entered into an amendment to include the closing of a non-brokered private placement for gross proceeds of a minimum of $1.8M and a maximum of $2M. Net proceeds will be used for the acquisition of, and for working capital purposes in connection with the San Francisco mine, Sonora.

ON RESOURCES AND DEVELOPMENT

  • Discovery Metals Corp., released results from eight diamond drill holes collared at its Cordero project in Chihuahua. Goal of these holes was to define and extend the higher-grade mineralized footprint to the NE and SW of the Pozo de Plata zone. Significant drill intersections were encountered in hole C20-319 with 0.1 g/t Au, 70 g/t Ag, 1.5% Pb, and 1.9% Zn (207 g/t AgEq) over a width of 168.8m, including 0.2 g/t Au, 103 g/t Ag, 2.2% Pb, and 4.4% Zn (378 g/t AgEq) over 27.7m; and hole C20-317 with 0.22 g/t Au, 90 g/t Ag, 0.9% Pb, and 0.5% Zn (159 g/t AgEq) over 79m. 48 holes totaling 17,500 m have been completed to date at Cordero to understand the high-grade footprint. Assays from 16 holes are pending. All holes have been drilled roughly perpendicular to the main structural north-east trend of higher-grade mineralization.
  • GR Silver Mining Ltd., announced historical drilling results from its Plomosas Silver project and provided an update on its ongoing exploration program at its San Marcial project, both located in Sinaloa. At Plomosas, in San Juan Area, highlights include hole LRD-46 with 0.13 g/t Au, 198 g/t Ag, 1.7% Pb, and 0.5% Pb (261 g/t AgEq) over a true width (TW) of 6.4m, including 0.13 g/t Au, 404 g/t Ag, 0.7% Pb, and 0.3% Zn (444 g/t AgEq) over a TW of 3m; hole LRD-54 with 0.4 g/t Au, 821 g/t Ag, 7.4% Pb, and 4.5% Zn (1,304 g/t AgEq) over a TW of 2m; hole SJD-17 with 0.43 g/t Au, 521 g/t Ag, 4.6% Pb, and 1.6% Zn (705 g/t AgEq) over a TW of 1.9m; and hole SJD-10 with 0.8 g/t Au, 574 g/t Ag, 1.6% Pb, and 0.7% Zn (675 g/t AgEq) over a TW of 2.7m. “GR Silver Mining continues its review and validation of more than 500 surface and underground drill holes on all six zones, aiming to confirm additional multiple vein systems hosted in a set of regional high angle fault zones and shallow dipping younger regional faults”. At San Marcial project, it obtained positive initial Au results from channel sampling at two new targets including 28.94 g/t Au and 143 g/t Ag over 0.2m, and 6.81 g/t Au over 0.2m. It also completed the work to widen 170m an existing tunnel to reach the breccia-hosted high-grade mineralization. GR also commented that with all the accumulated data generated it has generated at least eight drill-ready targets to test.
  • Golden Minerals Company, completed PEA´s for its Rodeo and Velardeña projects in Durango. At Rodeo, the PEA shows a pre-tax NPV (8% discount rate) of USD $24.4M with a low start-up cost of USD $1.5M. Pending receipt of mining permits, mining and processing is planning for Q1, 2021. At Velardeña, the PEA shows a pre-tax NPV (8% discount rate) of USD $85.9M based on incorporating bio-oxidation processing as the key to achieving robust project economics. No development decision has been made with regard to this project.

ON DEALS AND CORPORATE ISSUES

  • Agnico Eagle Mines Limited, announced the election of directors during its annual and special meeting of shareholders (Pinos Altos, Chihuahua).
  • Alio Gold Inc., completed the sale of its San Francisco Mine in Sonora to Magna Gold Corp. Under the terms of the agreement, Timmins GoldCorp Mexico S.A. de C.V., a subsidiary of Alio Gold, received 9.74M of common shares of Magna and will receive USD $5M in cash (or a 1% NSR royalty in respect of the San Francisco Mine, if the cash payment is not made by Magna) within twelve months.
  • Argonaut Gold Inc., and Alio Gold Inc., received positive recommendations of its proposed merger announced on March 30, 2020. Argonaut and Alio shareholders of record at the close of business on March 30, 2020 and April 14, 2020 respectively are eligible to vote their common shares (El Castillo mine, Durango).
  • Azucar Minerals Ltd., announced it has granted stock options to certain directors, employees and consultants of the company to purchase an aggregate 425K common shares at a price of $0.11 per share (El Cobre project, Veracruz).
  • Xtierra Inc., received conditional approval for the acquisition of 87.99% interest of Minera Portree de Zacatecas S.A. de C.V. , for the amount of CAD $56K in cash less a deposit of CAD $26K previously paid, the remaining CAD $30K is payable in installments subject to certain milestones, and the issue to the vendor of 2M common shares of the company at a deemed value of CAD $0.05 per share. The TSXV has provided conditional approval of the acquisition which requires completion of legal documentation in Mexico (Bilbao project, Zacatecas).
  • Pan American Silver Corp., released its 2019 sustainability report, which includes details on Pan American’s environmental, social, governance (“ESG”), and health and safety performance.

ON SOCIAL RESPONSIBILITY

  • The Chihuahua Mining Cluster, donated MXP $200M to the Mexican Red Cross, which will be used to acquire the paramedics ´personal protection equipment to face the COVID-19 pandemic. The president of the Chihuahua Mining Cluster recognized the commitment of all mining units and suppliers belonging to the cluster for showing solidarity with its employees and with the communities, and declared that the mining industry has had to fight against the onslaught of the pandemic, since despite not having been considered an essential industry and being forced to close all its operations.
  • Esperanza Silver de México (Alamos Gold), delivered protective overalls to doctors and nurses at the IMSS Regional hospital 1 in Cuernavaca. This action was in addition to the previous delivery of KN95 masks and gloves that the mining company carried out at the Regional 1 hospitals of the IMSS, the ISSSTE Family Clinic in Cuernavaca, the Regional of Temixco and José G. Parres de Cuernavaca.
  • First Majestic Silver Corp., through its personnel of La Encantada mine in Coahuila, delivered pantries to five Ejidos from the Municipality of Ocampo. Personnel of the company prepared packages with items from the basic food basket that were delivered to the peasant families, house by house, in support of the health contingency by COVID-19. The local authorities appreciated the help of the mining company and other companies and social organizations that have brought support and health and humanitarian aid to the inhabitants of Ocampo.
  • Fresnillo plc, donated 2,000 covers, 40 gallons of disinfectant gel and 400 N95 masks to the hospitals of Zone No. 8 of the IMSS and General of the State of Sonora, in the city of Caborca, in support and recognition of the hard work carried out by the staff of these institutions.
  • Grupo Peñoles, in coordination with the Torreón City Council, donated 300 pantries and disinfectant products, for the benefit of residents of the Vicente Guerrero neighborhood, Torreón, near its Met-Mex Peñoles metallurgical plant.
  • Minera San Julián (Fresnillo plc), will provide mask to the Municipality of San Julian, Chihuahua. The production of mouth masks will be in charge of a community company in the town of Yerbitas, which was hired by Minera San Julián to contribute to the support of sanitary guidelines to face the COVID-19 pandemic. The mining company is also helping to generate employment and strengthen the local economy.
  • Aura Minerals Inc., in coordination with the Municipal Authorities of Concepción del Oro Zacatecas, has helped to implement measures designed to support the communities in this difficult time such as screening checkpoint for all those entering the city, contracting the local workforce to produce additional face masks for ongoing essential activities, providing canteens, transportation vehicles and health questionnaires, facilitating temperature scanning and the use of screening checkpoints, hiring additional medical personnel and supplying COVID-19 test kits.
  • Compañia Minera Pangea (McEwen Mining), donated cleaning kits to 109 families (354 persons) of seven communities near of its El Gallo mine in Sinaloa.

 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, bladed calcite in a low sulphidation epithermal vein system in a prospect in Sonora, Mexico.  Photo by Miguel A Heredia.

The Mining and Exploration News in Mexico: Highlights on the Fifth Week of April, 2020

265

By Jorge Cirett

During the 18th week of the year (April 27th to May 3rd, 2020), at least 34 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, INEGI presented production of metals and minerals for February. Camimex continues seeking the lifting of the mining halt during the current Coronavirus emergency. The Silver Institute informed Mexico continues to hold the premier position in silver production. Canada, unlike Mexico, permitted mines to operate under the Covid-19 emergency. ON EXPLORATION, in Baja California, One World Lithium is planning to begin drilling in June 2020. In Sonora, Colibri released drilling results at Evelyn, and completed a drone survey at El Mezquite; Sonoro updated on exploration at Cerro Caliche. In Durango, Canasil outlined plans for a drill program at Nora. In Jalisco, GoGold released results from eight holes at Los Ricos South.  ON MINING, Sierra Metals and Equinox Gold reported on the extension of the suspension on mining in Mexico. Agnico Eagle, Capstone, Fresnillo PLC, Excellon Resources, Consolidated Zinc and Alamos Gold released first quarter 2020 results. ON FINANCING, Mag silver completed a non-brokered private placement for C$60 M. SilverCrest Metals closed the private placement for C$27 M. Discovery Metals granted 4.83 M shares. Mexus Gold converted $242.5 K of debt into shares. ON RESOURCES AND DEVELOPMENT, Torex gold updated mineral resources at its El Limon Guajes mine in Guerrero. Agnico Eagle updated on the exploration status of the Santa Gertrudis project in Sonora. Evrim announced an update on the Ermitaño mineral resources in Sonora. Consolidated Zinc updated the mineral resources estimate at its Plomosas mine in Chihuahua. Minera Alamos reported results from drilling at its Santana project in Sonora. ON DEALS AND CORPORATE ISSUES, Telson Mining, Santacruz Silver, Kootenay Silver and Canuc Resources announced that they are to abide by the Canadian Securities Administration extension granted for their annual filings. Xtierra informed on the deal with Minera Portree for control of the Bilbao deposit in Zacatecas, as well of an NSR on claims in the area of Capstone’s Cozamin mine. GR Silver completed the second option payment on the San Marcial project in Sinaloa. ON SOCIAL RESPONSIBILITY. The AIMMGM and Mujeres WIM de Mexico, from Sinaloa donated food for doctors and health workers. Minera Mexico donated 500 food packages in Santa Barbara, Chihuahua. Minera Cuzcatan created a fund for community emergencies. Fresnillo is building a prefabricated hospital in Fresnillo, Zacatecas. Fresnillo PLC is sanitizing public spaces in Caborca, Sonora.

ON MEXICO ISSUES

  • According to INEGI (Mexican Statistics Bureau), during January of 2020 the gold production was: Sonora 3,115 Kg, Guerrero 1,592 kg, Chihuahua 1,554 kg, Zacatecas 1,157 Kg and Durango 976 Kg. For the same period silver production was: Chihuahua 102,205 Kg, Durango 74,909 Kg and Zacatecas 203,251 Kg. Lead production was: Zacatecas 13,184 tonnes, Chihuahua 3,289 tonnes and Durango 1,904 tonnes. For zinc production was: Zacatecas 29,931 tonnes, Chihuahua 9,030 tonnes and Durango 8,364 tonnes. On iron production was: Coahuila 338,198 tonnes, Colima 201,016 tonnes, Michoacan 198,023 tonnes, Chihuahua 37,664 tonnes and Durango 8,767 tonnes.
  • CAMIMEX and the PRI senate members had a virtual conference on which they shared their viewpoints on how the COVID-19 emergency is to affect the mining industry and what can be done to ameliorate the damage.
  • The Silver Institute informed that Mexico maintains its position as the major silver producer in the World. In 2019 Mexico produced 190.3 M Oz, Perú 135.4 M Oz and China 110.7 M Oz.
  • In striking difference with Mexico, Canada permitted mines to operate under the Covid-19 virus emergency. Miners in Mexico set their hopes for reactivation on the petition by USA and Canadian authorities to the Mexican government for a stepped reactivation of productive chains.
  • INEGI (Statistics Bureau) presented metal production figures for February 2020:INEGI Feb 202021

ON EXPLORATION

  • Sonoro Metals Corp. released the “Cerro Caliche Development Report” that summarizes the results of work to advance the understanding of the mineralized system of the project located in Sonora. “The report also assesses regional and property geology, the mapped zonation of the Cerro Caliche low-sulfidation epithermal system, and related potential for significantly higher grades at depth. It also includes two grade x thickness modeling tools, namely – longitudinal 3D sections and Isopachs, all based on drilling to date”.
  • Colibri Resource Corp. released results of its maiden campaign at its Evelyin project in Sonora. Significant drill hole intersections comprise 21.90 m @ 0.14 gpt Au (including 5.05 m @ 0.37 gpt Au); 27.00 m @ 0.10 gpt Au; 10.50 m @ 0.11 gpt Au. Further geologic mapping and rockchip sampling is to follow once the Covid-19 restrictions are lifted.
  • Colibri Resource Corp. recently completed a high definition topographical drone survey over its El Mezquite project in Sonora.
  • One World Lithium Inc. is planning the next phase of drilling at its Salar del Diablo project in Baja California for early June 2020, following completion of the recently announced financing.
  • GoGold Resources Inc. released the assays for eight diamond drill holes at the Los Ricos South project in Jalisco. Three holes were drilled at the San Juan area and the rest at the Main Area. Core length significant intersections comprise: 20.1 m @ 0.33 gpt Au, 100 gpt Ag (including 6.0 m @ 0.97 gpt Au, 257 gpt Ag); 23.2 m @ 0.68 gpt Au, 113 gpt Ag; 26.6 m @ 0.29 gpt Au, 47 gpt Ag (including 4.7 m @ 1.24 gpt Au, 129 gpt Ag); 22.3 m @ 1.01 gpt Au, 52 gpt Ag (including 10.0 m @ 1.79 gpt Au, 64 gpt Ag); 4.2 m @ 2.87 gpt Au, 344 gpt Ag; 15.4 m @ 0.79 gpt Au, 91 gpt Ag.
  • Canasil Resources Inc. outlined plans for an initial core drill program on the Candy vein at the Nora project in Durango. Rock samples in the vein have returned 1.0 m @ 3.72 gpt Au, 605 gpt Ag, 0.97%Cu, 1.2% Pb, 0.4% Zn; 1.4 m @ 0.89 gpt Au, 392 gpt Ag, 0.06% Cu, 0.2% Pb; 1.0 m @ 2.98 gpt Au, 540 gpt Ag, 0.85% Cu, 4.0% Pb, 3.5% Zn; 0.6 m @ 2.28 gpt Au, 316 gpt Ag, 0.57% Cu, 2.4% Pb, 0.2% Zn; 0.8 m @ 3.03 gpt Au, 585 gpt Ag, 2.8% Cu, 5.2% Pb, 1.8% Zn; 0.6 m @ 6.55 gpt Au, 10 gpt Ag, 0.06% Cu, 0.3% Pb; 0.4 m @ 12.55 gpt Au, 12 gpt Ag, 1.02% Cu, 2.7% Pb, 0.7% Zn. Dump samples have returned up to 2.89 gpt Au, 193 gpt Ag, 2.64% Cu, 8.0% Pb, 9.8% Zn.

ON MINING

  • Sierra Metals Inc. reported that the Mexican Federal Government extended the suspension of all non-essential activities to contain the advance of COVID-19 virus. The suspension will now continue until May 30, 2020, but the suspension will not apply to the municipalities that present a low or null transmission of the virus, as of May 18, 2020. This raises the possibility that the Bolivar mine in Chihuahua may be able to resume operations, due to its remote location.
  • Equinox Gold Corp. announced the temporary suspension of mining activities at its Los Filos mine in Guerrero has been extended until May 30, 2020, with the potential to an earlier start-up by May 18, 2020. The solution from the leach pads has continued to be processed at a slower pace.
  • Agnico Eagle Mines Ltd. informed the suspension related to the COVID-19 virus emergency is to cost $6.6 M in Mexico. During the first quarter 2020, 480 K tonnes were processed at Pinos Altos, Chihuahua, at a daily rate of 5,275 tonnes per day (tpd) of material grading 2.36 gpt Au to produce 33,310 Oz Au at production cash cost of $1,077 per Oz Au and total cash cost of $747 per Oz Au. The drilling budget for the year is $7.8 M on a total of 42,000 meters. Current proven and mineral reserves are 957 K Oz Au, 24 M Oz Ag; indicated and measured resources of 1.1 M Oz Au, 26 M Oz Ag; inferred mineral resources stand at 435 K Oz Au. At La India, in Sonora, 1.53 M tonnes were processed at a 16,857 tpd rate, grading 0.74 gpt Au to produce 22,926 Oz Au at total cash cost per Oz Au of $778. Residual leaching continues through the Coronavirus shutdown at La India.
  • Capstone Mining Corp. presented production and financial results for Q1 2020, including figures from its Mexican operations. At Cozamin, in Zacatecas, 8.7 M pounds of copper were produced at cash cost $0.95 per pound of copper. As part of the expansion project, an 818 m raise bore was completed, improving ventilation on the deepest part of the mine. “The final key component of this expansion, the Calicanto one-way ramp, continues as scheduled and on budget to be completed in December 2020”.
  • Fresnillo PLC. presented its first quarter 2020 production report. During the first quarter 130,000 meters of drilling were completed on operating mines, in addition 38,000 meters “were drilled at the Fresnillo, San Julián and Guanajuato districts in Mexico, and two projects outside Mexico (Peru and Chile). Interesting results were obtained in the Fresnillo district that merit follow up…”.Fresnillo Production Table, Q1 20201
  • Excellon Resources Inc. announced first quarter 2020 production results from the Platosa mine in Durango. During the period 19,899 tonnes were mined, with 19,042 tonnes processed, grading 542 gpt Ag, 5.44% Pb, 6.78% Zn, recovering 89.3% Ag, 82.8% Pb, 74.9% Zn, to produce 296,281 Oz Ag, 1.89 M Lb Pb, 2.13 M Lb Zn, or 523,742 Oz AgEq.
  • Consolidated Zinc Ltd. disclosed first quarter 2020 operations report at its Plomosas mine in Chihuahua. During the quarter 9,987 tonnes were mined, 10,321 tonnes were processed @ 16.6% Zn, 8.4% Pb, 46 gpt Ag. Regional exploration has outlined several zones of interest to the northwest of the mine, returning several high-grade gold-copper samples.
  • Alamos Gold Inc. presented first quarter 2020 results, including figures from its Mexican operations. At Mulatos, Sonora, 1.92 M tonnes of ore were mined, 2.34 M tonnes of waste moved, 22,342 tpd crushed, with 2.03 M tonnes staked on the heap @ 1.25 gpt Au, containing 81,933 Oz Au, and producing 42,600 Oz Au on an average recovery rate of 52%. Alamos is finalizing project design and plans to finalize the La Yaqui Grande project economics and announce a construction decision in the second quarter of 2020. Exploration is moving beyond the main Mulatos area into earlier stage project within the 28,972 ha land package, with $1.8 M invested during the period.

ON FINANCING

  • Mag Silver Corp. arranged a non-brokered private placement with Mr. Eric Sprott for gross proceeds of C$60 M (Juanicipio, Zacatecas).
  • Telson Mining Corp. is seeking a 30 day extension from the TSX Venture Exchange to close its non-brokered private placement offering for up to C$3 M of gross proceeds.
  • SilverCrest Metals Inc. closed the private placement with SSR Mining Inc. for C$26.98 M, strengthening SilverCrest’s financial position to a cash balance of C$234 M in its treasury. (Las Chispas, Sonora).
  • Discovery Metals Corp. granted 4.83 M options to acquire common shares of the company at $0.47 per share (Cordero, Chihuahua).
  • Mexus Gold US. Informed $242,500 of debt incurred by the company was converted to shares already held in reserve.
  • Mag Silver Corp. completed the previously announced non-brokered private placement for gross proceeds of C$60 M. “A finders’ fee is payable in connection with the Offering to a group of financial advisors led by Clarus Securities Inc.” (Juanicipio, Zacatecas).

ON RESOURCES AND DEVELOPMENT

  • Discovery Metals Corp. announced that during the last quarter of 2019 a second rig was added to the drilling campaign at Cordero, Chihuahua, and that a non-brokered private placement for $19.0 M was completed. By the end of the period the company had $23.95 M in cash and cash equivalents.
  • Torex Gold Resources Inc. updated mineral reserves and resources at its El Limón Guajes Complex in Guerrero. Open pit proven and probable reserves stand at 24.82 M tonnes @ 2.92 gpt Au containing 2.33 M Oz Au and underground reserves of 0.66 Mt @ 6.94 gpt Au containing 0.15 M Oz Au. Open pit measured and indicated resources stand at 35.78 Mt @ 2,77 gpt Au containing 3.19 M Oz while underground M&M resources hold 1.17 Mt @ 7.04 gpt Au containing 0.26 M Oz Au. Total reserves and M&M resources contain 5.93 M Oz Au, and total inferred resources another 0.45 M Oz Au.
  • Agnico Eagle Mines Ltd. updated on the exploration of its 44,145 ha Santa Gertrudis project in Sonora. As of the end of 2019 the project holds open-pit oxide indicated mineral resources of 5.1 M tonnes @ 0.64 gpt Au containing 104 K Oz Au and inferred mineral resources of 19.1 M tonnes @ 1.17 gpt Au containing 717 K Oz Au. Underground sulfide inferred resources stand at 3.1 M tonnes @ 4.58 gpt Au, containing 451 K Oz Au. Selected true width intervals of drilling at La Amelia deposit comprise 6.0 m @ 3.7 gpt Au, 3 gpt Ag; 13 m @ 3.3 gpt Au, 10 gpt Ag (including 5.5 m @ 5.3 gpt Au, 17 gpt Ag); 10 m @ 5.3 gpt Au, 7 gpt Ag (including 4.5 m @ 10.3 gpt Au, 5 gpt Ag); 10 m @ 3.2 gpt Au, 34 gpt Ag; 4 m @ 3.5 gpt Au, 5 gpt Ag; 4.5 m @ 5.1 gpt Au, 20 gpt Ag.
  • Evrim Resources Corp. announced an update to the gold-silver resource on the Ermitaño project in Sonora. Property owner First Majestic Silver Corp. released the following figures: An indicated resource of 2.1 M tonnes @ 4.59 gpt Au, 70 gpt Ag containing 311 K Oz Au, 4.73 M Oz Ag; an inferred resource of 3.73 M tonnes @ 3.08 gpt Au, 58 gpt Ag containing 370 K Oz Au, 6.98 M Oz Ag. Evrim holds a 2% NSR on the Ermitaño project.
  • Consolidated Zinc Ltd. updated the mineral resource estimate for its Plomosas mine in Chihuahua. Indicated mineral resources stand at 165 K tonnes @ 13.9% Zn, 6.3% Pb, 35.7 gpt Ag, containing 23 K tonnes Zn, 10 K tonnes Pb, 189 K Oz Ag. Inferred resources hold 799 K tonnes @ 13.0% Zn, 3.0% Pb, 17.5 gpt Ag, containing 104 K tonnes Zn, 24 K tonnes Pb, 450 K Oz Ag.
  • Minera Alamos Inc. reported additional results from its phase II drill program at its Santana project in Sonora. Significant intervals comprise 17.7 m @ 0.58 gpt Au; 53.2 m @ 0.75 gpt Au; 68.7 m @ 0.50 gpt Au; 101.0 m @ 0.37 gpt Au; 73.7 m @ 0.36 gpt Au; 143.7 m @ 0.50 gpt Au; 9.7 m @ 0.29 gpt Au; 25.3 m @ 0.31 gpt Au; 247.9 m @ 0.60 gpt Au. This campaign has extended the deposit by 50-100 m to the south-southwest.

ON DEALS AND CORPORATE ISSUES

  • Telson Mining Corp. informed that the Canadian Securities Administration granted blanket relief for all reporting issuers, providing up to a 45-day extension on periodic filings, and that Telson will abide by it (Campo Morado, Guerrero).
  • Santacruz Silver Mining Ltd. will be postponing the filing of its annual consolidated financial statements, and abide by the 45-day extension granted by the Canadian Securities Administration (Veta Grande, Zacatecas).
  • Kootenay Silver Inc. expects to file the Annual filings before the extension deadline required by the Canadian Securities Administrators (Columba, Chihuahua).
  • Xtierra Resources Inc. reported results for the year 2019. The company holds the rights to the Bilbao project, and acquired last year a 1.5% royalty on the project by paying C$51 K in cash and C$49 K in shares. Xtierra entered into an agreement to acquire 88% of Minera Portree by the payment of C$56 K and 2 M shares. Among the assets of Minera Portree is the right to a 2% NSR on six mining concessions adjacent to Capstone’s Cozamin mine in Zacatecas. Five of those concessions were acquired by Capstone in 2017 and 2019. An extension agreement was signed with Buchan Resources Ltd. to defer repayment of principal and accrued interest of its $800 K debt, in consideration of which 13 M shares were issued to Buchan (Bilbao, Zacatecas).
  • GR Silver Mining Ltd. announced the completion of the second option payment on the San Marcial project in Sinaloa, which included the issuance of 750 K common shares to the optionor.
  • Canuc Resources Corp. announced the postponement of the filing of the annual consolidated financial statements, according with the Canadian Securities Administration blanket extension (San Javier, Sonora).

ON SOCIAL RESPONSIBILITY

  • The Asociación de Ingenieros Mineros, Metalurgistas y Geólogos de Mexico (AIMMGM) in coordination with Mujeres WIM de México, both from the Sinaloa District, donated food for doctors and health care workers at the Riviera Hotel, where they are hosted.
  • Minera México donated 500 food packages in Santa Barbara, Chihuahua.
  • Minera Cuzcatan (Fortuna Silver) created a Fund for community emergencies. Said Fund is to be used to cover the need for medications, groceries and funerary expenses, in coordination with local municipality authorities and adherence to health dispositions.
  • Fresnillo PLC is hurriedly building a hospital for Covid-19 patient care. The pre-fabricated building is to be installed by the side of the local IMSS clinic in Fresnillo, Zacatecas, and is to have a capacity for 38 patients.
  • Fresnillo PLC in coordination with the Caborca Municipality is sanitizing public spaces. These include 40 areas, like open plazas, parks, supermarkets, bus stations, clinics, hospitals, Red Cross facilities, firefighters station banks and local national guard facilities, all of which will be sanitized constantly.

Content like what you have just read can be seen at https://gambusinoprospector.com/ and at LinkedIn’s Mexico Mineral Exploration Group.

On the image below: Milky quartz float with oxidized sulfide in an orogenic gold system in Oaxaca. Picture by Jorge Cirett.

265

The Mining and Exploration News in Mexico: Highlights on the Third Week of April, 2020

188

By Jorge Cirett

During the 16th week of the year (April 13th to April 19th, 2020), at least 25 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, the lost fluorite production by Minera Las Cuevas might translate into a health risk. Almaden Minerals makes public answers to claims by an NGO. Camimex asks the federal government to be blanketed under the “essential figure that would permit mines to operate under the Coronavirus emergency; the organization also stressed the health and sanitary benefits of a range of mined elements. First Majestic asked for silver mining to be considered an “essential” industry. ON EXPLORATION, in Zacatecas, Alien Metals informed on an induced polarization survey results at its Donovan 2 project. In Jalisco, GoGold Resources released drilling results for 10 more holes at the Los Ricos project.  ON MINING, First Majestic, Torex Gold, Fortuna Silver, Avino Silver, Sierra Metals and McEwen Mining released first quarter 2020 results. ON FINANCING, SilverCrest conducted a non-brokered private placement, raising C$101 M. Vizsla Resources is to commence trading at the OTCQB Venture Market. Oroco is to amend the term of 1.8 M warrants by three months. Impact Silver is raise up to C$2 M. ON RESOURCES AND DEVELOPMENT, GR Silver released results from historical drill holes at its Plomosas project in Sinaloa. Golden Minerals released a PEA on its Rodeo project, Durango. ON DEALS AND CORPORATE ISSUES, Dyna Resource updated on the results of the favorable ruling upon completion of the legal battle over the shares of the company and its San Jose de Gracia project in Sinaloa. Telson Mining entered into a letter agreement with Trafigura, regarding  the renegotiation on the service of its debt. ON SOCIAL RESPONSIBILITY. Grupo Mexico, Fresnillo PLC and Newmont Goldcorp provided notes on how the companies are aiding the communities and the local governments to address the Coronavirus emergency. Minera Autlan is helping to clear a road blocking landslide in Hidalgo.

ON MEXICO ISSUES

  • Las Cuevas mine halt in operations in San Luis Potosi, a medical risk. Camimex released a bulletin highlighting the importance to keep the mine operating, as it produces fluorite, used in the elaboration of breath inhalators.
  • Minera Gorrión explains against unfounded bribe accusation. The Almaden Minerals subsidiary sustains the claim has been made by a non-governmental organization which aspires to change the mining law. The company dropped the mining concessions on the Ejido de Tecoltemic several years ago, whose land is located at least seven kilometers away upstream of the proposed pit limit for the Ixtaca project in Puebla.
  • Camimex informed of the sanitary and health benefits of several mined elements. On its pledge to obtain the “essential” industry categorization under the Coronavirus to release the mines for operation, stressed on a bulletin the known health and sanitary benefits of copper, silver, zinc and fluorite.
  • First Majestic asked the Mexican government to consider silver mining as an essential business during the Coronavirus outbreak. The major silver producers in Mexico are Fresnillo PLC, Newmont Goldcorp (Peñasquito), Grupo Mexico, Pan American Silver, Peñoles and First Majestic.

ON EXPLORATION

  • Alien Metals Ltd. informed a recently completed induced polarization survey at its Donovan 2 project in Zacatecas. The survey was carried out in February, consisting in 9.45 line kilometers over 11 lines, producing several targets. Float samples in the area undercover have returned results in the 1.0% to 3.3% Cu range, highlighting the Cu-Au potential of the project, which is less than 10 km from Teck’s San Nicolas deposit.
  • GoGold Resources Inc. released the results for ten diamond drill holes at its Los Ricos project in Jalisco. Four holes were drilled in the San Juan area, and six in the Main area. Highlighted core length intervals comprise: 33.5 m @ 0.32 gpt Au, 52 gpt Ag (including 4.9 m @ 1.58 gpt Au, 211 gpt Ag); 13.6 m @ 0.25 gpt Au, 74 gpt Ag; 22.1 m @ 0.31 gpt Au, 42 gpt Ag; 5.6 m @ 1.41 gpt Au, 181 gpt Ag; 27.6 m @ 0.31 gpt Au, 63 gpt Ag; 25.7 m @ 0.48 gpt Au, 56.5 gpt Au; 10.6 m @ 1.42 gpt Au, 264 gpt Ag; 31.8 m @ 0.11 gpt Au, 36 gpt Ag; 33.0 m @ 1.2 gpt Au, 193 gpt Ag.

ON MINING

  • First Majestic Silver Corp. announced total production for the first quarter 2020 reached 3.2 M Oz Ag, 32,202 Oz Au, or 6.2 M Oz Ag Eq.First Majestic Q1 2020 production1
  • Torex Gold Resources Inc. released gold production for the first quarter 2020. The company processed 12,460 tpd (tonnes per day), average mining rates were 1,110 tpd for underground and 19,080 tpd for open pit mining, to produce 108,530 Oz Au at its El Limon-Guajes mine in Guerrero.
  • Fortuna Silver Mines Ltd. reported results for the first quarter 2020, including figures from its Mexican operations in Mexico. At the San José mine in Oaxaca 246.8 K tonnes were processed at a rate of 2,837 tpd @ 216 gpt Ag, 1.33 gpt Au, recovering 91.7% Ag, 91.3% Au, to produce 1.57 M Oz Ag, 9,630 Oz Au.
  • Avino Silver & Gold Mines Ltd. released production results for the first quarter 2020. At the Avino mine in Durango, 164.1 K tonnes were processed at a grade of 57 gpt Ag, 0.40 gpt Au, 0.57% Cu, recovering 89% Ag, 73% Au, 86% Cu, to produce 266.7 K Oz Ag, 1,531 Oz Au, 1.8 M Lb Cu, or 683.9 K Oz AgEq.
  • Sierra Metals Inc. announced first quarter 2020 production, including figures for its operations in Mexico. At Bolivar, in Chihuahua, 377.6 K tonnes were processed at 4,315 tpd grading 0.89% Cu, 21.1 gpt Ag, 0.28 gpt Au; recovering 85.91% Cu, 82.01% Ag, 63.89% Au, to produce 6.4 M Lb Cu, 210 K Oz Ag, 2,191 Oz Au, or 9.15 M Lb Cu. At Cusi, also in Chihuahua, 77.9 K tonnes were processed at 890 tpd rate, grading 120.88 gpt Ag, 0.18 gpt Au, 0.33% Pb; recovering 80.21% Ag, 46.53% Au, 84.17% Pb, to produce 243 K Oz Ag, 212 Oz Au, 471 K Oz Pb.
  • McEwen Mining Inc. presented production results for Q1 2020, including figures from its operations in Mexico. At El Gallo, in Sinaloa, produced 2,737 Oz AuEq from residual leaching of the heap leach pad.

ON FINANCING

  • SilverCrest Metals Inc. is conducting a non-brokered private placement for gross proceeds of C$75 M, with provisions to increase the offering to C$100 M. Later on the week SilverCrest announced the over-subscribed completion of the placement  for C$101 M in gross profits. The Company is to use the net proceeds on the continued exploration and development of the Las Chispas project, Sonora.
  • Vizsla Resources Corp. announced its shares are to commence trading on the OTCQB Venture Market in the United States (Panuco, Sinaloa).
  • Oroco Resource Corp. intends to apply to the TSX Venture for approval to amend the term of 1.8 M outstanding share purchase warrants by extending the period by three months (Santo Tomás, Sinaloa).
  • Impact Silver Corp. entered into an agreement with a syndicate of investors led by Palisades Goldcorp Ltd., to raise up to $2 M in gross proceeds, with no finders fee on this transaction (Zacualpan District, Estado de Mexico).

ON RESOURCES AND DEVELOPMENT

  • GR Silver Mining Ltd. Released drill results from historical holes at the San Juan area of the Plomosas project in Sinaloa. Highlighted true width interval results comprise: 3.0 m @ 1,419 gpt Ag, 15.50 gpt Au, 0.2% Zn; 5.4 m @ 104 gpt Ag, .09 gpt Au, 0.9% Zn, 0.3% Pb; 20.0 m @ 74 gpt Ag, 0.08 gpt Au, 3.3% Zn, 1.3% Pb; 6.1 m @ 152 gpt Ag, 1.33 gpt Au; 2.5 m @ 207 gpt Ag, 1.2% Zn, 0.7% Pb. The drill results were generated on campaigns by Grupo Mexico (1982-2000) and First Majestic Silver (2016-2018), previous project operators.
  • Golden Minerals Co. released results from a PEA (Preliminary Economic Assessment) on its Rodeo open pit project in Durango. The study points to a2.25 years life of mine (LOM) with average 3.31 gpt Au, 9.6 gpt Ag to produce 34 K Oz Au, 89 K Oz Ag at cash cost $798 per Oz AuEq and AISC $843 per Oz AuEq.

ON DEALS AND CORPORATE ISSUES

  • DynaResource Inc. and its subsidiary DynaResource de México S.A. de C.V. announced that on February 20, 2020 “a México City court issued its Final Judgment, effectively foreclosing on all shares of DynaMéxico formerly held by Goldgroup Resources Inc., and awarding those shares to DynaMéxico. DynaResource stated that the ruling means Goldgroup resources retains no shares and shareholders rights in DynaMéxico, and owes to DynaMéxico US$48.3 M in damages, and that DynaMéxico owns 100% of the San José de Gracia project in Sinaloa.
  • Telson Mining Corp. entered into a letter agreement with Trafigura Mexico S. A. de C.V., acknowledging the default in debt obligations by Telson, and setting guidelines for debt repayment. Among the terms, stands out that Telson might sell some assets to fulfill its debt obligations (Campo Morado, Guerrero).

ON SOCIAL RESPONSIBILITY

  • Grupo Mexico delivered 13 ventilators to the Sonora government. The equipment is intended for use in the Coronavirus emergency in the Cananea zone. The equipment was installed at the Hospital General de Cananea.
  • Fresnillo PLC donated personal protection material and sanitary products to the Hospital Comunitario (Hospital Comunitario) in Guadalupe y Calvo, Chihuahua. Among the material delivered were 50 Tyvek protection suits , 40 liters of disinfectant gel, 1,000 glove sets, 50 protective glasses and 200 N-95 masks.
  • Newmont Goldcorp (Peñasquito) created a global fund of US$20 M to aid on the Coronavirus crisis. The aim is to help local vulnerable groups, governments and employees during the hard times induced by the Coronavirus. Some of the actions that have commenced to unfold include the delivery of 500 protection suits for those in the front lines of patient care, 3,000 cleaning sets, and 500 Coronavirus detection tests.
  • Minera Autlán is helping on clearing a landslide. The phenomenon affected the Hueyapa-Tlanchinol road in Hidalgo, resulting in food shortages in nearby communities.

Content like what you have just read can be seen at https://gambusinoprospector.com/ and at LinkedIn’s Mexico Mineral Exploration Group.

On the image below: Hematite-goethite stained quartz vein in an orogenic gold system, Oaxaca. Picture by Jorge Cirett.

188

The Mining and Exploration News in Mexico: Highlights on the First Week of April, 2020

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By Jorge Cirett

Amidst the Coronavirus widespread suspension of activities, including mining and exploration, decreed by the Mexican government, a record number of press releases was issued. During the 14th week of the year (March 30th to April 5th, 2020), at least 57 press releases were announced by companies working in Mexico, of which 20 were on how companies were dealing with the situation. ON MEXICO ISSUES, a national decree by the federal government suspended all non-essential activities, which include mining and exploration, until the end of April. The DGM (Mining Regulator) is to manage everything through electronic channels during the Coronavirus contingency (in practical terms, do not expect anything done during this period of time). Previous to the federal government decree, the Sonoran government ordered the stoppage of all work on the mines on the State. Mexico is well poised for a substantial growth in lead and zinc production in 2020 (although the work suspension on mines might prevent it).  ON EXPLORATION, in Sonora, Silver Viper released more drilling results on El Rubi zone of its La Virgina project. Tocvan Ventures commenced geophysical and soil survey programs at its Pilar project. In Chihuahua, Discovery Metals and Kootenay Silver announced the suspension of activities at its Cordero and Columba projects respectively. In Sinaloa, Kootenay Silver announced the suspension of activities at El Copalito. Advance Gold released drilling information on its Tabaqueña project.  ON MINING, Mag Silver, Excellon Resources and Odyssey Marine Exploration presented 2019 results. First Majestic plans to invest $46 M in capital expenditures at its Santa Elena project. GoGold completed the commissioning of a SART palnt at its Parral tailings facilities. Equinox plans to produce 170 K – 190 K Oz Au during 2020 at Los Filos, Guerrero, and invest a total of $75 M. ON FINANCING, Orla Mining closed a bought deal for C$75 M. Mithrill is to conduct a rights issue for share holders in Australia and New Zealand to raise $2.45 M. Southern Silver announced the exercise of 2015 and 2016 warrants and options, raising $1.25 M. ON RESOURCES AND DEVELOPMENT, First Majestic updated the mineral resource estimate on seven of its Mexican properties. Sierra Metals updated the mineral resource estimate on Bolivar, Chihuahua. Prime Mining produced a new resource estimate for its Los Reyes project in Sinaloa. Mag Silver has to obtain funding, or see its 44% JV participation in the Juanicipio project (Zacatecas) dwindle. Great Panther filed two technical reports on the Guanajuato mine complex. Bacanora Lithium granted a contract to GRES on the Sonora Lithium project. Golden Minerals presented a new PEA for its Velardeña properties. GR Silver Mining released underground channel results from the Plomosas project in in Sinaloa. ON DEALS AND CORPORATE ISSUES, GR Silver completed the acquisition of the Plomosas project in Sinaloa. Argonaut Gold and Alio Gold are merging. Orex Minerals and Pan American Silver are forming a JV on the Sandra project in Durango. Riverside is going ahead with the Peñoles project (Durango) spin-off. Mithrill Resources informed on the acquisition of Sun Minerals. Southern Silver entered into an agreement with Monarch Minerals to purchase a mineral concession adjacent to Cerro Las Minas project in Durango. Oroco Resources amended disclosures on the Santo Tomas project technical report. Odyssey Marine Exploration continues with the arbitration process for its offshore phosphate project in Baja California Sur. ON SOCIAL RESPONSIBILITY. Newmont GoldCorp Peñasquito donated 500 COVID-19 tests and delivered thousands of cleansing packages in the communities near the Peñasquito mine in Zacatecas..

ON MEXICO ISSUES

  • Mining halted in Mexico. A national decree by the Mexican federal government suspended all non-essential activities for 30 days on the wake of the fight on the propagation of the coronavirus. Mining is not considered essential thus all operations are due to shut down.
  • Mexico is well positioned for increased lead and zinc production, BNamericas. Supported by expected continued work at Newmont’s Peñasquito mine, Southern Copper’s San Martin mine and Peñoles operations, the lead and zinc Mexican production is poised to grow in 2020. Lead production could increase 27.8% to 194.9 K tonnes, with the expected production of 90.7 K tonnes at Peñasquito. Zinc production could increase 27% to 633.2 K tonnes, with its expected production of 192.8 K tonnes. Both zinc and lead face extremely low prices, with zinc at US$0.85/Lb and lead close to US$0.75/Lb.
  • To reduce coronavirus contagion risks, the Dirección General de Minas (DGM) initiated a protocol to process requests and information only through electronic media, for the time that the contingency lasts (in practical terms, the already slow pace of proceedings at the DGM is coming to halt for the time being).
  • The Mining Fund served its purpose at Jiapaz, Zacatecas, where solar panels were installed to power the water system on La Martinica de Guadalupe neighborhood.
  • The Sonora government issued orders to stop all non-essential activities, including mining, as a mean to reduce the propagation speed of the COVID-19 pandemic in the state.
  • Mining companies that presented press releases on Coronavirus related suspension of activities: Argonaut Gold, Sierra Metals, Pan American Silver, Premier Gold Mines, Equinox Gold, GoGold Resources, Gold Resource, Excellon Resources, Endeavour Silver, Azucar Minerals, Avino Silver & Gold Mines, Agnico Eagle Mines, Almaden Minerals, Alamos Gold, Fortuna Silver, Mithrill Resources, Vizsla Resources, Torex Gold, Great Panther, and Golden Minerals.

ON EXPLORATION

  • Silver Viper Minerals Corp. released drilling results at its La Virginia project in Sonora. The Rubi zone strike length increased by 100 m, to a total of 400 m, where a total of 6,103 m in 20 holes have been collared; a further 852 m in four holes were drilled at the Macho Libre target. The results for the last nine holes are still pending. Highlighted true width intervals comprise: 1.42 m @ 156 gpt Ag, 1.79 gpt Au; 2.84 m @ 249 gpt Ag, 1.55 gpt Au (including 0.36 m @ 1,584 gpt Ag, 5.56 gpt Au); 17.04 m @ 28 gpt Ag, 0.69 gpt Au; 1.07 m @ 52 gpt Ag, 1.27 gpt Au; 1.07 m @ 124 gpt Ag, 3.32 gpt Au; 4.26 m @ 38 gpt Ag, 0.64 gpt Au; 6.04 m @ 74 gpt Ag, 0.99 gpt Au (including 1.78 m @ 187 gpt Ag, 2.48 gpt Au. The company recently completed a 4,800-hectare; 718 line-km helicopter borne magnetic-radiometric geophysical survey centered on El Rubi zone.
  • Discovery Metals Corp. announced the temporarily suspension of all exploration activities at its Mexican operations due to the COVID-19 risks. “Discovery has already completed 48 holes totaling 17,500 metres of its planned 30,000 – 35,000 metre Phase 1 drill program. The Company will provide ongoing exploration updates for the 34 drill holes not previously press released once results have been received and validated”. Discovery had a cash balance of CAD$24 M by the end of 2019 (Cordero, Chihuahua).
  • Tocvan Ventures Corp. announced the commencement of the 2020 field program at the Pilar project in Sonora. The focus is to expand the known areas of mineralization, gain a better understanding of structural controls, identify mineralization targets and define drill targets. A multiple-task (?) geophysical survey is underway concurrently with a close-spaced soil sampling program. These surveys will be followed up with structural refining, XRF survey across the property and reviewing historical drill holes.
  • Kootenay Silver Inc. temporarily suspended the current drill programs at its Columba (Chihuahua) and Copalito (Sinaloa) projects, to reduce the propagation risks of the Coronavirus.
  • Advance Gold Corp. released information on drilling at its Tabasqueña project in Zacatecas. One hole was abandoned because of challenging drilling conditions; a second hole intercepted a black slate with small sulphide lenses 0.3 cm to 1 cm in thickness, this unit explains the chargeability anomaly detected by the geophysical survey. The best intercept was 1.25 m @ 2.79% Pb; the third hole also intersected the sulphide bearing black slate unit, assays pending. Teck’ San Nicolas VMS project is 11 kilometers East of Tabasqueña.

ON MINING

  • First Majestic Silver Corp. plans to invest US$46.3 M in capital expenditures at its Santa Elena mine in Sonora. Exploration, the installation of an autogenous mill, exploration and development of the Ermitaño West, mine access preparation and prefeasibility studies are among the use of the funds involved.
  • GoGold Resources Inc. reported the completion of commissioning of the SART plant at its Parral Tailings facility in Chihuahua. “The main economic drivers are the recovery of a high-grade saleable copper sulfide product, the re-generation of cyanide, which is the largest single operating cost at Parral, and improve the leaching efficiency of the heap”. GoGold reduced the need to purchase cyanide by $200 K in March.
  • Excellon Resources Inc. reports 2019 annual and Q4 financial results. At Platosa, in Durango, 19.8 K tonnes @ 435 gpt Ag, 4.84% Pb, 6.39% Zn were processed, recovering 91.7% Ag, 80.2% Pb, 76.5% Zn to produce 259.2 K Oz Ag, 1.69 M Lb Pb, 2.06 M Lb Zn during the quarter. For the full year 75.2 K tonnes @ 409 gpt Ag, 4.75% Pb, 6.82% Zn were processed , recovering 89.9% Ag, 79.2% Pb. 77.7% Zn to produce 1.05 M Oz Ag, 6.1 M Lb Pb, 8.4 M Lb Zn, or 1.93 M Oz AgEq.
  • Odyssey Marine Exploration Inc. reported results for the full year 2019.
  • Equinox Gold Corp. provided production guidance for 2020, including figures from its operations in Mexico. At the Los Filos mine in Guerrero, production is set to range between 170 K to 190 K Oz Au, at an AISC of $1,000 to $1,050 per Oz Au, sustaining capital of $24 M and Non-sustaining capital of $51 M. “The Company is advancing an expansion of the Los Filos mine complex including enlarging the Los Filos open pit, developing a second underground mine (Bermejal), adding a new open pit (Guadalupe) and constructing a new carbon in leach (“CIL”) plant to process higher-grade ore…….. Equinox Gold has budgeted a total capital spend of $75 million at Los Filos during 2020. Non-sustaining capital of $51 million relates primarily to the expansion project and includes $20 million for pre-stripping of the Guadalupe open pit and $23 million allocated to Bermejal underground development”.

ON FINANCING

  • Newmont Corp. has announced expiration and final results of the tender offers for its 3.5% senior notes due 2022 and Goldcorp’s 3.7% notes due 2023. (Peñasquito, Zacatecas).
  • Mithrill Resources Ltd. will be conducting a pro-rata non-renounceable rights issue to allow shareholders, of ordinary shares with a registered address in Australia or New Zealand, to apply for one share for every ordinary share held, to raise $2.45 M (Copalquin, Durango).
  • Southern Silver Exploration Corp. informed recent warrant and option exercised during the current fiscal period. Warrants and options issued in 2015 and 2016 were exercised for $1.25 M in gross profits (Cerro La Mina, Durango).
  • Orla Mining Ltd. closed its previously announced bought deal financing with a syndicate of underwriters led by Stifel GMP and including Desjardins Capital Markets, Paradigm Capital and Cormark Securities Inc. for aggregate gross proceeds of C$75 M.

ON RESOURCES AND DEVELOPMENT

  • First Majestic Silver Corp. updated mineral reserve and mineral resource estimates for the San Dimas (Durango), Santa Elena (Sonora) and La Encantada (Coahuila) producing mines, as well as from its San Martín (Jalisco), La Parrilla (Durango), Del Toro (Zacatecas) and La Guitarra (Estado de Mexico) properties.

First Majestic Reserves and Resources 2019

  • Sierra Metals Inc. updated mineral reserve and mineral resource estimates for its Bolivar mine in Chihuahua. Mineral reserves decreased by 2.5 M tonnes on mining depletion from 2017, but measured, indicated and inferred resources have significantly grown.

Bolívar Reserves and Resources to 201911

  • Mag Silver Reported 2019 annual results. Development of the Juanicipio mine (Zacatecas) and processing plant continue, with the plant expected to commence commissioning in mid-2021. Underground development is ongoing, exceeding now 26 Km. Remaining pre-operative initial capital is estimated at $305 M, although this figure can be reduced by cash in hand of the operator of the JV (Fresnillo 56%, Mag 44%) and expected cash flow from mineralized material extracted and processed at the Fresnillo’s mine facilities commencing in mid-2020. “The Company needs to raise additional capital in the future in order to meet its full share of initial capital required to develop the Juanicipio Project. Mag does not generate operating cash flow at this time to fund such obligations, and accordingly, future liquidity will depend upon its ability to arrange debt or additional equity financings. The Company is currently evaluating several proposals. The inability of MAG to fund its 44% share of cash calls would result in dilution of its ownership interest in Minera Juanicipio in accordance with the shareholders’ agreement”. At the end of the year Mag had $71.86 M including cash and cash equivalents of $72.36 M AuEq.
  • Great Panther Mining Ltd. filed two technical reports regarding the Guanajuato mine complex. “The reports are titled “NI 43- 101 Mineral Resource Update Technical Report on the Guanajuato Mine Complex, San Ignacio Mine, Guanajuato State, Mexico”, dated March 17, 2020, and “NI 43-101 Mineral Resource Update Technical Report on the Guanajuato Mine Complex, Guanajuato Mine, Guanajuato State, Mexico”, dated March 27, 2020”.
  • SilverCrest Metals Inc. released protocols to minimize exposure to coronavirus, in order to decrease the risk to employees, contractors, families and communities near Las Chispas project in Sonora.
  • Evrim Resources Corp. updated the resource on the Ermitaño project in Sonora, of which it holds a 2% NSR. Property owner First Majestic Silver Corp. announced a 15% increase in grade and a 345% increase in contained AgEq ounces in the indicated resources compared to the previous estimate. The indicated resources are 2.1 M tonnes @ 4.59 gpt Au, 70 gpt Ag, containing 311 K Oz Au and 4.73 M Oz Ag; the inferred resources stand at 3.73 M tonnes @ 3.08 gpt Au, 58 gpt Ag, containing 370 K Oz Au, 6.98 M Oz Ag.
  • Bacanora Lithium. Announced the granting of a contract to GR Engineering Services for engineering, acquisition and construction services on the Sonora lithium project.
  • Prime Mining Corp. released a new resource estimate for its Los Reyes project (formerly Guadalupe de Los Reyes) in Sinaloa. The pit constrained resources range from 19.75 M tonnes @ 1.31 gpt AuEq measured and indicated resources (M&I) containing 833.1 K Oz AuEq and 7.1 M tonnes @ 1.14 gpt AuEq in inferred resources containing 261.1 K Oz AuEq at a 0.22 gpt AuEq cutoff; to 5.91 M tonnes @ 2.72 gpt AuEq M&I resources and 1.68 M tonnes @ 2.59 gpt AuEq containing 516.2 K Oz AuEq and 140.5 K Oz AuEq respectively, at a cutoff grade of 1.0 gpt AuEq. The pit strip ratio is calculated as 4.6 to 1 waste to ore in six separate pits.
  • Golden Minerals Co. announced positive results from the updated mineral resource estimate and preliminary economic assessment (PEA) for its Velardeña properties in Durango. The PEA states a pre-tax net present value of $85.9 M at an 8% discount rate, an internal rate of return of 138.6%, pre-production capital cost of $10.27 M, post production and working capital $15.93 M and a life of mine of 10 years to produce 10.2 M Oz Ag, 119 K Oz Au. The resource estimate including sulfide and oxide ore comprises 1.35 M tonnes @ 307 gpt Ag, 4.92 gpt Au, 1.54% Pb, 1.78% Zn in measured and indicated resources, containing, 13.34 M Oz Ag, 214 K Oz Au, 45.8 M Lb Pb, 53 M Lb Zn; and 1.76 M tonnes @ 354 gpt Ag, 4.73 gpt Au, 1.72% Pb, 1.86% Zn, containing 20.1 M Oz Ag, 268 K Oz Au, 67.1 M Lb Pb, 72.3 M Lb Zn.
  • GR Silver Mining Ltd. released assay results from initial underground channel sampling from the San Juan workings at the Plomosas Silver project. San Juan is one of six priority areas with underground development not yet exploited by previous owners. Some of the highlighted composites comprise 2.1 m @ 0.30 gpt Au, 552 gpt Ag, 0.7% Pb, 1.0% Zn (including 0.40 m @ 1.2 gpt Au, 3,003 gpt Ag, 2.9% Pb, 3.1% Zn); 5.0 m @ 0.28 gpt Au, 816 gpt Ag, 0.9% Pb, 0.5 % Zn; 2.0 m @ 0.51 gpt Au, 1,145 gpt Ag, 0.9% Pb, 0.4% Zn; 2.8 m @ 0.42 gpt Au, 482 gpt Ag, 0.4% Pb, 0.4% Zn; 9.3 m @ 0.13 gpt Au, 346 gpt Ag, 0.7% Pb, 1.0% Zn; 3.0 m @ 0.11 gpt Au, 485 gpt Ag, 0.2% Pb, 0.3% Zn.

ON DEALS AND CORPORATE ISSUES

  • GR Silver Mining Ltd. Has completed the acquisition of the Plomosas silver project in Sinaloa, from First Majestic Silver Corp. .GR Silver paid CDN$100 K, granted First Majestic a 2% NSR, of which half could be bought for US$1 M, and issued First Majestic 17.1 M shares of GR Silver. The project comes with six areas at the drilling/resource stage, with 563 drill holes totalling over 100,000 m of core drilling and the mining infrastructure of the Plomosas mine, that produced over 2.5 M tonnes of Pb-Zn-Ag ore.
  • Argonaut Gold Inc. and Alio Gold Inc. have entered into a definitive agreement for an at-market merger whereby Argonaut will acquire all of Alio shares. The transaction creates an intermediate producer with four operations rendering 235 K Oz AuEq per year from four mines and presence in Mexico, Canada and USA, and a pipeline that includes Ana Paula (Guerrero), Cerro del Gallo (Guanajuato) and Magino (Canada).
  • Orex Minerals Inc. entered into an agreement to form a JV with Pan American Silver Corp. to explore and develop the Sandra (formerly Sandra Escobar) project in Durango. Orex and Pan American will own a 40% and 60% interest in the JV.
  • Riverside Resources Inc. has received requisite shareholder approval for the spin-out of the Peñoles Project (Durango) to its shareholders. “Once the Arrangement becomes effective, Riverside shareholders will own shares in two public companies: Capitan, which will focus on the development of the Peñoles Project, and Riverside, which will continue to generate prospective mineral properties”.
  • Mithhrill Resources Ltd. Informed on the proposed acquisition of Sun Minerals Pty Ltd., which holds an option to earn up to 100% interest on the Copalquin project in Durango. Due diligence was completed, a formal share agreement for the acquisition of all issued share capital of Sun Minerals was executed and shareholder approval received. On view of recent market developments, Mithrill and Sun Minerals agreed that Mithrill is to raise a minimum of A$1.5 M.
  • Southern Silver Exploration Corp. entered into an agreement with Monarch Minerals Inc. to purchase the El Sol mineral concession in Durango, near the Sothern Silver and Electrum Global Holdings L.P. Cerro Las Minas JV project. The purchase will not form a part of the Cerro Las Minitas JV. Acquisition cost is $US300 K payable in three equal installments on signature, 12 and 18 months, with the vendor retaining a 2% NSR that can be bought by Southern Silver at any time for US$1 M.
  • Oroco Resource Corp. wishes to clarify and amend its disclosures with respect to its Santo Tomas project in Sinaloa. “The BCSC reviewed the Company’s October, 2019 and March, 2020 corporate presentations (the “Presentations”) and its current technical report dated August 22, 2019 and titled “Technical Report Geology, Mineralization, and Exploration of the Santo Tomas Cu-(Mo-Au-Ag) Porphyry Deposit Sinaloa, Mexico” authored by D. A. Bridge, P. Geol.” (the “Report”). Both the current Presentation and the Report have been removed from the Company’s website pending revision. The disclosure issues in the Presentations and the Report with respect to National Instrument 43-101 (the “Instrument”) and Form 43-101F1 are summarized in the following discussion”.
  • Odyssey Marine Exploration Inc. has launched a NAFTA arbitration process on its “Exploraciones Oceánicas” phosphate project off the Pacific coast of Baja California Sur. “The Arbitral Tribunal, consisting of three international arbitrators well-versed in international investment treaties, has been constituted and the parties are now in the process of finalizing the arbitration schedule and procedures with the Tribunal……..“We intend to continue to work diligently and in good faith with Mexico’s current administration to achieve an equitable resolution of this dispute and to help Mexico provide fertilizer to its farmers, but we are prepared to proceed with the full NAFTA arbitration process if necessary, and have recently received increased litigation funding specifically to support this case”. The Exploraciones Oceánicas project contains an estimated 588 M tonnes of phosphate, at a depth of 70-90 m, lying 25 to 40 km from the coast, with almost no overburden.

ON SOCIAL RESPONSIBILITY

  • Newmont Goldcorp donates 500 COVID-19 tests in Zacatecas. The donation amounts to more than $2 M pesos.
  • Newmont Peñasquito delivered 3,000 cleansing packages, in the communities near the Peñasquito mine in Zacatecas, amidst the fight against the spread of the Coronavirus. The packages are to be delivered in and by local health institutions.

Content like what you have just read can be seen at https://gambusinoprospector.com/ and at LinkedIn’s Mexico Mineral Exploration Group.

On the image below: Hematite-goethite stained quartz vein in an orogenic gold system, Oaxaca. Picture by Jorge Cirett.

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The Mining and Exploration News in Mexico: Highlights on the Third Week of March, 2020

IMG_0770b

By Jorge Cirett

During the 12th week of the year (March 16th to March 22nd, 2020), at least 30 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, Javier Corral, Chihuahua’s governor proposed the Major’s National Association they take part on the current constitutional controversy about the use of the Mining Fund. Mining companies around Mexico and the Camimex prepare for the Coronavirus by cancelling meetings, fairs and gatherings, and promote precautionary measures among its personnel, contractors and communities The AIMMGM convention in Chihuahua, the AMSAC convention in Cananea, and the Discoveries Conference in Guadalajara were to be held at the end of April, but have been re-scheduled due to the Coronavirus effects to later dates on July, August and September. ON EXPLORATION, in Baja California, One World Lithium has obtained the drilling, environmental and occupancy permits to commence drilling on the southern part of the project. In Sonora, Colibri announced the completion of phase 1 drilling at Evelyn. In Chihuahua Century Metals and Reyna Silver are to continue the exploration of the Guigui project near Santa Eulalia.  ON MINING, Starcore filed the results of the last quarter. Mexus Gold continues leaching in Sonora. Avino Silver, Torex gold, McEwen Mining, Impact Silver, Great Panther, Excellon, Argonaut Gold, GoGold Resources, Endeavour Silver, Equinox Gold and Fortuna Silver informed on the measures taken to protect their business, people and communities from the effects of the Coronavirus epidemic. ON FINANCING, Silver Spruce entered into debt settlement agreements for $350 K. First Majestic intends to repurchase up to 10 M shares. SilverCrest Metals received notice from National Bank Financial to terminate their agreement to purchase up to $9.1 M shares. Almaden Minerals amended its private placement to reflect current market conditions. ON RESOURCES AND DEVELOPMENT, Prime Mining informed on recent work at its Guadalupe de Los Reyes project in Sinaloa, and how it might impact on the next resource estimation.  ON DEALS AND CORPORATE ISSUES, Century Metals provided an update on the acquisition of Reyna Silver (and its Guigui project in Chihuahua). Riverside Resources informed on its capitalization, business and current BHP strategic funding. Excellon Resources continues on the acquisition path of Otis Gold. Hecla Mining informed on current hedges to deflect the turmoil on the metals market.  ON SOCIAL RESPONSIBILITY. Minera Media Luna informed on a community campaign to prevent the spread of COVID-19 on neighboring villages to its operations.

ON MEXICO ISSUES

  • Javier Corral, Chihuahua’s governor, proposed on the Executive Committee of the Major’s National Association (Asociación Nacional de Alcaldes) that they take part on the constitutional controversy promoted by the Chihuahua government to rescue the Mining Fund from the Federal government.
  • Mining Companies across Mexico prepare for the Coronavirus, Grupo Mexico, Agnico Eagle, Alamos Gold, Fresnillo PLC and Minera El Boleo are among the companies that have installed policies aimed to reduce the chances of infection among its employees, workers and contractors, including the cancellation of fairs and meetings, as well as work from home programs and access control programs at its installations.
  • The AIMMGM convention in Chihuahua to be held on 21-24 April has been changed to 20-24 July, aiming to reduce the Coronavirus spread on the population. On the same grounds the AMSAC (Asociación de Mineros de Sonora) that was to be held on 29 April-1 has been postponed to 3-4 September.
  • The Discoveries Mining Conference to be held in Guadalajara in late April has been postponed, on the same venue, to 10-12 August 2010.
  • CAMIMEX (Cámara Minera de México) informed it is reducing all non-essential activities and avoiding in-person meetings, although maintaining the offices open to facilitate operations. The organism makes a strong plea to companies and the general population to follow all the preventive measures possible.

ON EXPLORATION

  • Colibri Resource Corp. announced the completion of the phase 1 drilling program at its Evelyn project in Sonora. Five holes were collared in the program that measured 815.6 m in total.
  • Century Metals Inc. and Reyna Silver Corp. are engaged on a merger that intends to advance the 4,554 ha Guigui project in the Santa Eulalia district in Chihuahua. Studies on the project for the last 25 years include detailed geologic mapping and sampling, gravimetrics, ground magnetics, CSAMT (Controlled Source Audio Magneto-Tellurics), NSAMT (Natural Source Audio Magneto-Tellurics), Airborne ZTEM/magnetics, satellite hyperspectral and definition of drilling targets. The planned budget for 10,000 m for compiling and re-processing all prior work and 10,000 m of diamond drilling is $2.44 M.
  • One World Lithium Inc. announced that drilling, environmental, and occupancy permits have been approved to drill two key locations at the south end of the Salar del Diablo Property in Baja California. The proposed exploration holes are located 50 km south of the previous drill holes in the north portion of the property. Mike Rosko of Montgomery Associates has recommended these locations, as “there is evidence of historic and currently active hydrothermal activity in the south and that hydrothermal activity can be a source of lithium such as in the Lithium Triangle in Chile and Argentina”.

ON MINING

  • Starcore International Mines Ltd. filed the results for the Q3 ended on 31 January, 2020. At the company’s San Martin mine in Queretaro, 58.3 K tonnes were milled @ 1.84 gpt Au, 30.1 gpt Ag, recovering 90.1% Au, 50.9% Ag, to produce 3.1 K Oz Au, 29.6 K Oz Ag during the quarter; on the year 301.9 K tonnes were milled @ 1.63 gpt Au, 39.6 gpt Ag, recovering 86.2% Au, 58.4% Ag, to produce 13.7 K Oz Au, 224.5 K Oz Ag (16.4 K Oz AuEq), at cash cost $1,061 per Oz AuEq.
  • Mexus Gold US. continues gold production at its Santa Elena mine in Sonora (Not to mistake for First Majestic’s Santa Elena mine, also in Sonora).
  • Avino Silver & Gold Mines Ltd. reported that there is not been impact on day to day operations at the Avino mine in Durango. The company restricted entrance to external visitors and no-one at the mine-site has tested positive for the COVID-19. Two medical doctors are monitoring and educating the labour force and employees daily.
  • Torex Gold Resources Inc. announced that to date the company had no known or suspected cases of COVID-19 infection at the El Limón – Guajes operations in Guerrero. “At the operation, we have stopped international travelers from coming to site. Social distancing efforts at site are being implemented, which includes isolating delivery drivers. Aggressive cleaning of communal areas has also been ramped up. Education initiatives on infection prevention have been extended to the surrounding communities”.
  • McEwen Mining Inc. reported fourth quarter and full year 2019 results, including figures from its Mexican operations. Production from residual leaching at El Gallo, in Sinaloa, was 2,490 Oz Au Eq for the quarter and 16,333 Oz Au for the year.
  • Impact Silver Corp. informed operations continue as the Coronavirus situation is monitored daily. “In conjunction with local authorities we are actively disseminating information on COVID-19 precautionary measures to our employees and their families. We will continue to monitor their health and for signs of early symptoms of the virus on a regular basis to ensure safety of our staff” (Zacualpan, Estado de Mexico).
  • Great Panther Mining Ltd. announced that it has been closely monitoring the latest developments of the novel Coronavirus COVID-19. “All operations and offices have implemented travel restrictions, supervision, monitoring and response plans to reduce the risk of COVID-19 exposure and outbreak” (Topia, Durango).
  • Excellon Resources Inc. informed the company is in regular contact with local health authorities at its Platosa (Durango) and Miguel Auza (Zacatecas) operations, and continue to monitor global trends on the Coronavirus pandemia. Among other measures “we have restricted site access to essential personnel and essential suppliers. We are conducting health screening at the gate and have provided our security and health personnel with additional protective measures. We have increased the frequency of workplace cleaning and disinfection, including transport vehicles, and have also increased the number of hand sanitizer stations across the work sites. We have implemented social distancing by doubling the number of buses transporting employees to site, significantly modifying food provision services and increasing office space for administration staff, as well as preparing to adjust our existing work-from-home policies as conditions dictate”.
  • Argonaut Gold. Has implemented protocols to minimize the risks of COVID-19 virus, both to employees and business. “At each site, Argonaut is following government health protocols, has implemented additional protocols and is closely monitoring the situation with local health authorities” (La Colorada, Sonora).
  • GoGold Resources Inc. informed that “The constantly changing COVID-19 situation is unprecedented and for many is a time filled with uncertainty. We’d like to ensure our shareholders that operations at Parral and Los Ricos continue as normal as we monitor the situation” (Parral, Chihuahua; Los Ricos, Jalisco).
  • Endeavour Silver Corp. has implemented plans to minimize the risks of the COVID-19 virus both to the employees and to the business. “At each site, Endeavour is following government health protocols and is closely monitoring the situation with local health authorities. The Company has posted health advisories to educate employees about the COVID-19 symptoms, best practices to avoid catching the virus, and procedures to follow if symptoms are experienced” (El Compas, Zacatecas).
  • Fortuna Silver Mines Ltd. has been monitoring the effects of the spread of the Coronavirus, particularly in the jurisdictions that host its mining operations. The company “has placed its Health Safety Security and Environmental Committee in permanent session and is continually assessing the related health and safety risks to the Company’s personnel and contractors at its operations and offices. Preventative measures implemented at our offices and mines include: restrictions on travel, enhanced communication on prevention of contagion and viral effects, increased hygiene initiatives, monitoring personnel and visitors at our sites for symptoms of COVID-19, identification of personnel in high risk categories, reducing mine site personnel to a minimum level essential for continued operations and limiting visitors to those whose visits are considered critical” (San José, Oaxaca).
  • Equinox Gold Corp. “is closely monitoring the COVID-19 pandemic and has taken precautionary measures at its mine sites and offices to help protect the safety of the Company’s workforce and local communities” (Los Filos, Guerrero).

ON FINANCING

  • Silver Spruce Resources Inc. has entered into debt settlements with several creditors and one officer and director to settle $350 K. Under the terms of the debt settlement agreements 7 M shares were issued (Pino de Plata, Chihuahua).
  • First Majestic Silver Corp. board has approved the extension of its share repurchase program over the next year, period on which the company aims to re-purchase up to 10 M shares (San Dimas, Durango; Santa Elena, Sonora).
  • SilverCrest Metals Inc. received notice from National Bank Financial Inc. purporting to terminate its obligations pursuant to an agreement whereby NBF had asked for and agreed to purchase on a “bought deal” basis 9.1 M common shares at price of $8.25 per common share, based on the “disaster out” clause of the agreement. “SilverCrest intends to pursue its legal remedies against NBF for breach of NBF’s obligations under the terms of the Agreement” (Las Chispas, Sonora).
  • Almaden Minerals Ltd. amended its private placement in order to reflect current market conditions. The purchase price for units has been reduced from $0.41 to $0.37 and the exercise price for warrants from $0.65 to $0.50, while the offering size has been increased from 4.9 M to 5.4 M units (Ixtaca, Puebla).

ON RESOURCES AND DEVELOPMENT

  • Prime Mining Corp. informed recent work at its Guadalupe de Los Reyes project in Sinaloa hints to the potential of linking resources. Recent new trenches and road cuts sampling indicate mineralization linkage between the Zapote North and Zapote South orebodies. “Independent engineers are currently assessing and calculating a new resource model, which is now expected to be updated by the end of Q1 2020”. The historic resource is 530 K Oz Au, 10 M Oz Ag, established for Vista Gold in 2013.

ON DEALS AND CORPORATE ISSUES

  • Century Metals Inc. provided an update on the acquisition of all the shares of Reyna Silver Corp. (which owns the Guigui project in Chihuahua). Century is to consolidate to its shares to 5.35 M, both companies are to undertake private placements and Century will issue shares to Reyna Silver’s shareholders and warrants to the holders of warrants, and Century will issue shares to Mag Silver Corp., which is to hold 19.9% of the consolidated shares. Century and Reyna are raising up to $6.8 M in conjunction with the acquisition through concurrent financings. To date, Reyna has raised $5.06 M and Century $1.49 M. The Acquisition is a reverse takeover, and the definitive agreement is expected to be settled before the end of March 2020.
  • Riverside Resources Inc. provided an update on its operations. Currently the company has more than C$2 M in cash, no debt, 63 M shares outstanding and posted to receive $1 M from BHP in May, as part of a generative copper exploration strategic funding agreement. The company also holds marketable securities worth over C$1 M and has retained NSR’s on previously partnered projects. By the end of the month Riverside will have a vote to spin-out the Peñoles project in Durango.
  • Excellon Resources Inc. and Otis Gold Corp., announced that they have filed a joint circular in connection with the acquisition by Excellon of all the shares of Otis, pursuant to a plan of arrangement under the Business Corporations Act of British Columbia (Platosa, Durango).
  • Hecla Mining Co. provided a summary of the activities undertaken to protect its business, employees and local communities from COVID-19. Among the actions taken, contracts have been secured for $16 per Oz Ag for the second quarter, and $1,450 and $1,650 per Oz Au for the second and third quarter respectively. The company has implemented and followed recommended health and hygiene protocols, restricted mine site staff to essential personnel and contractors, stockpiled critical mining supplies (up to six months’ worth in some cases) to protect against possible future supply disruptions (San Sebastian, Durango).

ON SOCIAL RESPONSIBILITY

  • Minera Media Luna has a community campaign to prevent the spread of the COVID-19 virus in the region of the Limon-Guajes mine in Guerrero. The campaign includes an informative preventive health circle inward and outward of the mining complex, into the communities of Acalmantlila, Nuevo Balsas, Real de Limón, La Fundición and Atzcala, among others.

Content like what you have just read can be seen at https://gambusinoprospector.com/ and at LinkedIn’s Mexico Mineral Exploration Group.

On the image below: potassic feldspar alteration in a meta granitoid in Oaxaca, picture by Jorge Cirett.

IMG_0770b

The Mining and Exploration News in Mexico: Highlights on the Second Week of March, 2020.

phreatic breccia

By Miguel A Heredia

During the eleventh week of the year (March 9th to March 15th, 2020), at least 21 press releases were announced by companies working in Mexico, with four commenting on Mexican issues, three announcing financial rounds, three informing on exploration results, three communicating production and financial results, three disclosing deals and corporate issues, three discussing issues on social responsibility, and two reporting on resources and developments.  ON MEXICO ISSUES, A local Deputy of Durango State celebrated the investment of USD $100M in the mining sector. Michoacán State breaks the mining slowdown cycle, and Fe extraction grows 8% and climbs to second place. A series of Mexican mining projects have changed ownership in recent weeks as Au and Ag prices rise. In the last five years, the female workforce in the mining sector has grown by an average of 14-15%, according to Karen Flores, General Director of the Mining Chamber of Mexico (Camimex). ON EXPLORATION, In Sinaloa, Vizsla reported drilling results from its Panuco project. In Zacatecas, Alien announced its program development for its Mexican projects. In Jalisco, GoGold released drilling results from 11 holes collared at its Los Ricos project. ON MINING, Americas Gold and Silver reported full year 2019 production and financial results (Cosala mine, Sinaloa). Santacruz suspended milling operations at its Veta Grande mine in Zacatecas. Fortuna Silver reported full year 2019 production and financial results from its San Jose mine in Oaxaca. ON FINANCING, Almaden announced a non-brokered private placement for gross proceeds of up to $2M (Ixtaca project, Puebla). SilverCrest announced a bought deal financing for gross proceeds of CAD $75M (Las Chispas project, Sonora). Mexus sold some Au produced at its Santa Elena mine in Sonora.  ON RESOURCES AND DEVELOPMENT, Great Panther updated mineral resource estimate at its Guanajuato Mine Complex in Guanajuato and provided an update on its Topia mine operation in Durango. SilverCrest reported infill drilling results from its Las Chispas project in Sonora. ON DEALS AND CORPORATE ISSUES, Equinox and Leagold completed merger to create premier Americas gold producer (Los Filos, Guerrero). Pan American filed its 2019 audited annual financial statement and annual information form (La Colorada mine, Zacatecas). Premier appointed a new member to its board of Directors (Mercedes mine, Sonora). ON SOCIAL RESPONSIBILITY, Almaden opened a local water reservoir in the community of Zacatepec, nearby its Ixtaca project in Puebla.  Argonaut gave scholarship number 3,000 to a student of La Colorada, Sonora. Minera San Xavier (New Gold Inc.), improves the public lighting system in Cerro de San Pedro, San Luis Potosi.

ON MEXICO ISSUES

  • A local Deputy of Durango State, celebrated the investment of USD $100M in the mining sector. It means greater economic development and especially the generation of a large number of well-paid jobs. For this reason, the Deputy said, it is necessary for the federal government to develop a state mining policy, as it is currently done in Durango that allows recovering the international competitiveness that characterized Mexico during the first decade of this millennium.
  • Michoacan State, breaks the mining slowdown cycle, and Fe extraction grows 8% and climbs to second place. According to the Economic Information Bank, the entity totaled 2.6M tonnes in 2019, which meant an increase of 8% with respect to the 2.4M tonnes reported during 2018.
  • A series of Mexican mining projects, have changed ownership in recent weeks as Au and Ag prices rise. For instance, Magna Gold acquired the San Francisco mine in Sonora from Alio Gold and is evaluating partnership opportunities to advance its suspended Ana Paula project in Guerrero; GR Silver Mining acquired Plomosas in Sinaloa from First Majestic; GoGold recently acquired 5 concessions around its Los Ricos project in Jalisco; and Fresnillo plc exercised an option to acquire the Naranjillo property in Guanajuato from Plata Latina. These latest agreements show that Mexico continues to generate a decent level of interest in mergers and acquisitions.
  • Karen Flores, General Director of the Mining Chamber of Mexico (Camimex), announced that In the last five years, the female workforce in the mining sector has grown by an average of 14-15%. Currently, 60 thousand women work in this industry in the country, which represents 16% of the total of its workers. In 2019, 3,153 new places were generated for them.

ON EXPLORATION

  • Vizsla Resources Corp., reported drilling results from its Panuco project in Sinaloa. Significant interception were encountered in hole AMS-20-06 with 1.25 g/t Au and 264 g/t Ag (364 g/t AgEq) over 3.55m, including 2.54 g/t Au and 474 g/t Ag (677 g/t AgEq) over a width of 1.3m; and hole AMS-20-04 with 2.45 g/t Au, 45 g/t Ag, 1.2% Pb, and 3.0% Zn (404 g/t AgEq) over 2.6m. These drilling results are the first set from an aggressive program of 14,500m that will continue throughout 2020.
  • Alien Metals Limited, announced its program development for its Mexican projects. The company has planned a detail exploration drilling program and has submitted applications for drill permits at its Los Campos and San Celso projects in Zacatecas. At its Donovan 2 Cu-Au VMS target in Zacatecas, it also is planning a ground magnetic survey to generate follow-up work and drill targets.
  • GoGold Resources Inc., released drilling results from eleven holes collared at its Los Ricos project in Jalisco: two at San Juan and nine at the Main area. Significant drill intersections were encountered in hole LRGG-20-106 (San Juan Area) with 1.35 g/t Au and 118 g/t Ag (2.92 g/t AuEq or 219 g/t AgEq) over a width of 21m, including 2.83 g/t Au and 217 g/t Ag and (5.73 g/t Au or 430 g/t AgEq) over a width of 9.5m; hole LRGG-20-102 (Main Area) with 1.05 g/t Au and 156 g/t Ag (3.13 g/t AuEq or 235 g/t AgEq) over a width of 10.7m; and hole LRGG-20-101 (San Juan Area) with 0.54 g/t Au and 116 g/t Ag (2.08 g/t AuEq or 156 g/t AgEq) over a width of 33.8m, including 2.0 g/t Au and 467 g/t Ag (8.22 g/t AuEq or 617 g/t AgEq) over a width of 5m.

ON MINING

  • Americas Gold and Silver Corporation, reported full year 2019 production and financial results. Consolidated results indicate a total ore processed of 701.8K tonnes of 70 g/t Ag, 2.1% Pb, 3.4% Zn to produce 1.16M Oz Ag, 26.2M Lb Pb, and 43.3M Lb Zn, with a cash cost of $4.61 per Oz Ag and AISC of $12.71 per Oz Ag. The company reported revenues of $58.4M and a net loss of $34.2M. The Cosala mine in Sinaloa successfully executed its production plans for the year 2019, increasing mill tonnage to over 1,750 tonnes per day, and increasing production of precious and by-product metals.
  • Santacruz Silver Mining Ltd., suspended milling operations at its Veta Grande mine in Zacatecas for approximately six months to facilitate plant and new tailings storage facility upgrades.
  • Fortuna Silver Mines Inc., reported Q4 and full year 2019 production and financial results from its San Jose mine in Oaxaca. During the period Q4, 2019, it milled 273,066 tonnes of 249 g/t Ag and 1.5 g/t Au, recovering 91% for both metals to produce 2M Oz Ag and 12K Oz Au, at cash cost of $6.8 per Oz AgEq and AISC of $10.5 per Oz AgEq. For the full 2019 year, the company milled 1,068,722 tonnes of 252 g/t Ag and 1.57 g/t Au, recovering 91% for both metals, to produce 7.9M Oz Ag and 48.9K Oz Au, at cash cost of $6.70 per Oz AgEq and AISC of $9.8 per Oz AgEq.

ON FINANCING

  • Almaden Minerals Ltd., announced a proposed non-brokered private placement to raise gross proceeds of up to $2M. Net proceeds will be used for permitting activities related to its Ixtaca project in Puebla, and for general corporate purposes. Closing of the offering is anticipated to be on or about March 26, 2020.
  • SilverCrest Metals Inc., announced a bought deal financing for gross proceeds of CAD $75M. Net proceeds will be used to continue the exploration and development of its Las Chispas project in Sonora and for general working capital and administrative purposes.
  • Mexus Gold US, sold 16.5 out of 125 Oz Au produced at its Santa Elena mine in Sonora, at a price of USD $1,600 per Oz. Additional sales will be occurring shortly.

ON RESOURCES AND DEVELOPMENT

  • Great Panther Mining Limited, updated mineral resource estimate at its Guanajuato Mine Complex in Guanajuato. At Guanajuato mine, measured + indicated resources are 343,736 tonnes of 204 g/t Ag and 1.69 g/t Au to contain 2.25M Oz Ag and 8.7K Oz Au (3.75M Oz AgEq at a grade of 339 g/t AgEq). Inferred resources are 208,608 tonnes of 168 g/t Ag and 2.32 g/t Au to contain 1.13M Oz Ag and 15.6K Oz Au (2.37M Oz AgEq at a grade of 354 g(t AgEq). At San Ignacio mine, measured + indicated resources are 386,417 tonnes of 159 g/t A and 3.03 g/t Au to contain 1.97M Oz Ag and 37.6K Oz Au (4.98M Oz AgEq at a grade of 401 g/t AgEq). Inferred resources are 501,870 tonnes of 149 g/t Ag and 2.69 g/t Au to contain 2.4M Oz Ag and 43.4K Oz Au (5.88M Oz AgEq at a grade of 364 g/t AgEq). In addition, the company reported that it has temporarily ceased tailing deposition at its Topia mine in Durango. Great Panther is in the process of permitting a Phase III of a tailings storage facility (TSF) site. Meanwhile, it is reviewing alternatives to store tailings (permanent or transitionary) until phase III TSF is permitted. The company expects it is obtained in the within the next 3 or 6 months.
  • SilverCrest Metals Inc., reported infill drilling results from its Las Chispas project in Sonora. Highlights include hole UBV19-30 with 81.6 g/t Au and 6,619 g/t Ag (12,740 g/t AgEq) over a true width of 2.1m; hole BV20-22 with 101.45 g/t Au and 5,413 g/t Ag (13,022 g/t AgEq) over a true width of 1.1m; and hole BV20-18 with 45.8 g/t Au and 2,396 g/t Ag (5,831 g/t AgEq) over a true width of 1.6m. The drilling results have nearly doubled the size of the high-grade footprint for the Babi Vista Vein in the Babicanora Area.

ON DEALS AND CORPORATE ISSUES

  • Equinox Gold Corp., and Leagold Mining Corporation, completed merger to become in one of the world´s top gold producing companies. The concurrent USD $670M debt and equity financings associated with the merger have also been completed (Los Filos mine, Guerrero).
  • Pan American Silver Corp., filed its 2019 audited annual financial statement and annual information form (La Colorada mine, Zacatecas).
  • Premier Gold Mines Limited, appointed a new member to its board of Directors (Mercedes mine, Sonora).

ON SOCIAL RESPONSIBILITY

  • Almaden Minerals Ltd., along with the Federal Government Water Authority (CONAGUA), opened a local water reservoir in the community of Zacatepec, nearby its Ixtaca project in Puebla. This water reservoir will be used for irrigation to boost the current harvests of the community.
  • Argonaut Gold Inc., gave the scholarship number 3,000 to a student of la Colorada, Sonora. In this community, the company has maintained an academic scholarship program since 2011. The General Manager of the La Colorada mine assured that the company’s commitment is fulfilled in coherence with the vision of social responsibility where the education of children and young people is a priority.
  • Minera San Xavier (New Gold Inc.), has invested heavily in the infrastructure of the municipality of Cerro de San Pedro, as part of the social actions contemplated in its Comprehensive, Inclusive and Participatory Mine Closure Plan. The company is improving the public lighting system in Cerro de San Pedro, San Luis Potosi, with solar luminaries, which have a positive impact on public safety and tourist activities. These solar luminaries count with great potential for energy savings, reducing electricity consumption and maintenance costs, without compromising the quality of lighting services.

 

Content like what you have just read can be seen at https://gambusinoprospector.com/ and at LinkedIn’s Mexico Mineral Exploration Group.

On the picture above, a phreatic breccia in an epithermal hot spring prospect in Guanajuato, Mexico.  Photo by Miguel A Heredia.