The Mining and Exploration News in Mexico: Highlights on the First Week of December, 2019.

chalcedonic quartz vein

By Miguel A Heredia

During the forty-nine week of the year (December 2nd to December 8th, 2019), at least 31 press releases were announced by companies working in Mexico, with nine commenting on Mexican issues, six informing on exploration results, four announcing financial rounds, four reporting on resources and developments of their properties, three communicating production and financial results, three disclosing deals and corporate issues and two discussing issues on social responsibility.  ON MEXICO ISSUES, Alejandro Tello, governor of Zacatecas State, obtained MXP $430M from the 2016-2017 Mining Fund for infrastructure work. Mexico´s mining production suffered a sharp decline in September. Fernando Alaniz, president of the Mining Chamber of Mexico (CAMIMEX), demanded for long-term certainty in Mexico for mining investment purposes. Fresnillo plc announced that it will allocate approximately USD $670M in new and sustainable projects.  Grupo Mexico announced an investment of USD $250M in the construction of a wind farm in Nuevo León. A Minister of the Supreme Court of Justice proposed to invalidate the changes applied in 2019 to the Mining Fund. CAMIMEX announced that mining companies claime tax return to have funds to invest. The Under Secretariat of Mining, Francisco Quiroga Fernández, confirmed there is a lithium deposit in Bacadéhuachi, Sonora.  ON EXPLORATION, In Baja California Norte, One World Lithium provided an update on its 4 holes drilling program being conducted at its Salar del Diablo project.  In Sonora, Colibri announced results from 100 samples collected at its Evelyn project. In Chihuahua, Radius and its JV partner Pan American Silver released results from the phase 3 drilling program at its Amalia project, and Valterra refined drill targeting on its Los Reyes project. In Jalisco, GoGold released drill results from eight holes collared at its Los Ricos project. In Oaxaca, Megastar identified multiple high potential epithermal targets at its Magdalena project. ON MINING, Santacruz reported Q3, 2019 production and financial results (Veta Grande, Zacatecas).  Alio Gold announced production and cost guidance for 2020. (San Francisco mine, Sonora). Consolidated Zinc advised that mining of its Plomosas mine in Chihuahua will be managed and operated by the company. ON FINANCING, San Marco revised its non-brokered flow through private placement on October9, 2019 (Chunibas project, Sonora). Tocvan Ventures announced that its shares are now listed on the Frankfurt Stock Exchange with the symbol TV3 (El Pilar project, Sonora). First Mining announced a flow through equity financing for gross proceeds of approximately to $2M (San Ricardo project, Sonora). ON RESOURCES AND DEVELOPMENT, Capstone reported that drilling results from its Cozamine mine in Zacatecas returned higher grades and wider intercepts than in current reserves. Starcore presented its updated NI 43-101 mineral reserves and resources at its San Martin mine in Queretaro. US Antimony provided an update on its Puerto Blanco mill in Guanajuato for its Los Juarez Au-Ag and Sb deposit in Querétaro. Mexus Gold announced that its new 500GPM Merrill Crowe Au recovery plant is complete and operational (Santa Elena mine, Sonora). ON DEALS AND CORPORATE ISSUES, San Marco retained Momentum Public Relations Inc., to assists with strategic business development activities (Chunibas project, Sonora). Argonaut provided an update on its San Antonio project permitting in Baja California Sur.  ON SOCIAL RESPONSIBILITY, Grupo Mexico, through its health and social care program called Dr Vagón, attended nearly 3,000 consultations in Delicias, Chihuahua. Peñoles, through its Community Center, informed about the planned activities to be performed in the coming Christmas season.

ON MEXICO ISSUES

  • Alejandro Tello, governor of Zacatecas State, obtained $430M from the 2016-2017 Mining Fund to be invested in 2010, in 41 infrastructure works in Zacatecas, such as construction and rehabilitation of roads, and sports infrastructure projects, among others.
  • Mexico’s mining production, suffered a sharp decline in September while the industry continue dealing with community relations, security and political challenges. Overall production fell 4.7% compared to the same month last year, with Au and Pb among minerals registering double-digit falls. Ag and Cu production fell 2.2% and 1.3%, respectively, with coke, sulfur and fluorite seeing the greatest decreases, 22.3%, 13.2% and 12.7%. Only the production of coal, Zn and non-coking plaster increased, by 7.2%, 2.0% and 1.3%. Part of the fall can be attributed to a blockade at the Peñasquito mine in Newmont Goldcorp, one of Mexico’s largest producers of Au, Ag, Pb, and Zn.
  • Fernando Alanis, president of the Mining Chamber of Mexico (CAMIMEX), demanded for long-term certainty conditions in Mexico for mining investment purposes. The mining sector has invested significant amounts in recent years, with 2012 being the year of greatest investment, which was approximately USD $8,043M. Mining investment has been falling and in 2016 it reached USD $3,752M, and the current year it is believed to have exceeded USD $2,600 M. “Mining is a sector that can generate a lot of investment in places that require many services and support from our entire sector and the only thing we ask is that there be certainty conditions in order to continue generating investment attraction”.
  • Fresnillo plc, announced that it will allocate USD $670 M in new and sustainable project, increasing its investment by 14.5% in 2020. “The capital investment forecast for new 2021 projects is expected to be around USD $475M, while by 2022, USD $415M, ”said Octavio Alvidrez, General Director of the company. By 2020, Fresnillo plans to extract 54M Oz Ag, 8% lower than expected by the end of 2019; while Au would be 857 K Oz. By 2021 the company expects to increase the extraction of Ag by 22%, as they expect to obtain 66 M Oz.
  • Grupo Mexico, reported an investment of USD $250M in the construction of a wind farm in the state of Nuevo León, México. The Fenicias project will have a production capacity of 168 megawatts and will be interconnected with the National Electric System through the construction of a transmission line of more than 60 km in the area of ​​Reynosa, in the state of Tamaulipas. “Grupo México will increase its power generation capacity to almost 800 megawatts, becoming one of the main power generators in the country,” said the company, in the release. The commercial operation of this wind farm is planned to begin in early 2021.
  • Industrias Peñoles S.A.B. de C.V., announced that it continues growing and now there are already 31,500 workers. The General Director of Peñoles, Fernando Alanís Ortega, also confirmed that all of its 2019 production is sold.
  • A Minister of the Supreme Court of Justice, proposed to invalidate the changes applied to the Mining Fund in 2019. The Mining Fund was reformed in the Revenue Law of the Federation of 2019, removing from the states and municipalities the resources raised by the extraordinary right to mining created in 2014. This reform caused 33 controversies, one of the Chihuahua Executive, which is the first on the list, and 32 of municipalities of five states. Until 2018, the collection of mining rights was divided into two exchanges: 22.5% was distributed to all states and Mexico City as a federal share -which in 2018 was MXP $2,605M, and the remaining 77.5 percent was sent to the Mining Fund, which accumulated MXP $11,325M from 2014 to 2017. Municipalities received 62.5% of the Mining Fund for public works premises, which in the case of Chihuahua alone included 330 projects in four years. After the 2019 reform, the money went to the Ministry of Economy (SE) with the idea of ​​applying them for the Welfare Tandas, a program of the current government that gives credits to micro entrepreneurs for up to MXP $15K. In 2020, the changes to the Mining Fund will be applied in the Federal Law of Rights, which is where it has existed since its creation. Now, the majority of Morena in Congress determined that 85 % of the money will go to the SEP for the construction of schools, 10% to the federal government for other works, and 5% to the SE to supervise the mining activity, without funds being provided for local governments of mining areas, nor to distribute funds to its entities.
  • The Mining Chamber of Mexico (CAMIMEX), said that companies in the mining sector are claiming the return of taxes to maintain their cash flow and have funds to carry out new investment projects. In a statement, CAMIMEX said that, being highly exporting companies, they always get a balance in favor when they file their returns with the Tax Administration Service (SAT).
  • The Under Secretariat of Mining, Francisco Quiroga Fernández, confirmed the existence of a lithium deposit in Bacadéhuachi, Sonora, which will begin production in 2022. Sonora is the main mining state in the country and with the discovery of this site reinvents itself, since in the world there is a race to develop lithium and now the state is within that future.

ON EXPLORATION

  • One World Lithium Inc., provided an update on its 4 holes drilling program being conducted at its Salar del Diablo project in Baja California Norte. To date, hole DDH-1 has been collared to a depth of 650m, and hole DDH-2 has reached 590m with a planned depth of 650m. Hole 3 will commence soon at a location where there is evidence of historic and currently hydrothermal activity, which can be a source of lithium. Depending on the hole DDH-3 results, a fourth hole will be drilled to complete the planned drilling program.
  • Colibri Resource Corporation, announced results from 100 samples collected at its Evelyn project in Sonora. Of the samples taken, 30 returned >0.1 g/t Au, 24 returned > 0.2 g/t Au and 12 returned > 0.75 g/t Au. With the recent mapping and sampling program conducted at the Evelyn project, the compnay has identified two separate NW corridors with favourable structures containing Au: Cerro Rojo and El Sahuaro areas. Rock-chip sampling from these areas have returned encouraging values ranging from 0.5 up to 73.4 g/t Au and correspond with anomalous Au soil samples taken previously. Colibri is planning to conduct a 1,000m drilling program to test these target areas.
  • Radius Gold Inc., and its JV partner Pan American Silver Corp., released results from the first 2 diamond drillholes of the phase 3 drilling program at its Amalia project. Hole AMDD19-016 encountered 1.53 g/t Au and 41 g/t Ag over 120m (75m of true width), related to disseminated fine black sulphides and sulphide veining in ignimbrite rhyolites and transitioning to intense silicification, stockwork veining, and breccias. Hole AMDD19-17, was collared 100m north of hole AMDD19-016 and intersected with anomalous values up to 2.26 g/t Au and 23 g/t Ag over a section of 30m wide silicified fault breccia, but no potentially economic mineralization was encountered. Drilling is ongoing at Amalia project, and results will be released upon they become available.
  • Valterra Resource Corporation, refined drill targeting on its Los Reyes Cu-Au project in Chihuahua, using the recently completed surface sampling along an 800m strike length of a Cu-Au skarn and a 4.8 line km 2D/3D DCIP geophysical program. 22 out of 28 samples returned Cu values > 1% at an average grade of 3.1% Cu and up to 5.9% Cu. The anomalous samples returned up to 0.57 g/t Au, 25 g/t Ag, 0.47% Mo, and 1.7% Zn. The geophysical survey identified a strong conductivity anomaly along the intrusive contact which projects more than 400m through four of the five main areas of historic old workings and defines the main target for test drilling. Conductivity and chargeability anomalies were also identified in all the survey lines and are spatially associated or adjacent to areas of known historical surface mineralization. “The Company is initially targeting a 5-10M tonnes, shallow high grade Cu-Au resource localized along the strike length of the exposed skarn zone. Further work will examine the deeper potential of the mineralizing system including a potential Porphyry Cu-Au source for the shallow high-grade mineralization.
  • GoGold Resources Inc., released drill results from the last eight holes collared at its Los Ricos project in Jalisco, of which four were drilled in San Juan Area, two in the Main Area, and two along the south edge of the Main Area. Highlights of the holes collared in the San Juan Area include hole LRGG-19-073 with 1.12 g/t Au and 117 g/t Ag (2.67 g/t AuEq or 200 g/t AgEq) over 33.5m, including 3.01 g/t Au and 184 g/t Ag (5.47 g/t AuEq or 410 g/t AgEq) over 9.5m, and including 1.81 g/t Au and 291 g/t Ag (5.70 g/t AuEq or 427 g/t AgEq) over 3.0m; hole LRGG-19-76 with 0.73 g/t Au and 123 g/t Ag (2.38 g/t AuEq or 178 g/t AgEq) over 38.5m, including 1.70 g/t Au and 260 g/t Ag (5.17 g/t AuEq or 387 g/t AgEq) over 5.8m, and including 1.58 g/t Au and 220 g/t Ag (4.51 g/t AuEq or 338 g/t AgEq) over 6.0m; and hole LRGG-19-77 with 1.03 g/t Au and 94 g/t Ag (2.29 g/t AuEq and 172 g/t AgEq) over 26.0m, including 4.28 g/t Au and 241 g/t Ag (7.49 g/t AuEq or 562 g/t AgEq) over 4.3m. In the Main Area, hole LRGG-19-065 encountered 0.23 g/t Au and 84 g/t Ag (1.35 g/t AuEq or 101 g/t AgEq) over 13.1m, including 0.50 g/t Au and 155 g/t Ag (2.57 g/t AuEq or 192 g/t AgEq) over 5.4m. To date, GoGold has completed 90 diamond drill holes totaling 15,140m.
  • Megastar Development Corp., identified multiple potential epithermal targets at its Magdalena project in Oaxaca. During the first mapping and sampling exploration campaign conducted at the property, 277 rock chip samples were taken and the geologist found characteristics of a significant epithermal system with 59 rock samples returning above 0.2 g/t Au, 24 samples returning above 0.5 g/t Au, 12 samples returning above 1 g/t Au, and 2 samples returning above 3 g/t Au. “Strong epithermal alteration is found along a minimum 1.7 km long E-W structural trend that shows sheeted quartz vein sets and silicification in conjugate NNW to NNE-NE structural sets. The setting is the eastern structural margin of a caldera where it intersects a prominent regional E-W structural trend. Approximately 4,100 square meters of silicified bladed calcite textures have been mapped within a larger area of strong and sheeted quartz veining. This main zone, along with other prominent outliers, constitutes easy-to-access and drill-ready targets”.

ON MINING

  • Santacruz Silver Mining Ltd., reported Q3, 2019 production and financial results from its operations. At Zimapan mine, Hidalgo, the company milled 82,242 tonnes to produce 606.6K Oz AgEq at cash cost of $41.89 per ton, or $16.32 per Oz AgEq produced, and an AISC of $18.56 per Oz AgEq produced. At Veta Grande mine, Zacatecas, it milled 43,999 tonnes to produce 214.3K Oz AgEq at a cash cost of $47.67 per tonne or $19.79 per Oz AgEq produced, an AISC of $26.77 per Oz AgEq produced. At El Rosario mine, San Luis Potosi, Santa Cruz milled 22,048 tonnes to produce 132K Oz AgEq, at cash cost of $82.10 per tonne or $27.96 per Oz AgEq produced, and an AISC of $38.63 per Oz AgEq produced. Consolidated numbers for its mining operations were 148,289 tonnes milled to produce 952.8K Oz AgEq, at cash cost of $49.58 per tonne or $18.52 per Oz AgEq produced, and an AISC of $22.83 per Oz AgEq produced. Consolidated mining operations generated a gross profit of $102 including gross profit from Zimapan of $992, and gross losses from Rosario and Veta Grande of $672 and $511 respectively plus mine services gross profit of $293.
  • Alio Gold Inc., announced production and cost guidance for 2020. It expects to produce between 12K-15K Oz Au at cash cost of USD $1,700-$1,800 per Oz.
  • Consolidated Zinc Limited, terminated its mining contractor and advised that mining of its Plomosas mine in Chihuahua will be managed and operated by the company in order to significantly reduce its mining cost. “The Company is confident it can deliver improved performance from the mine before the end of December. During this short transition period processing ore and concentrate from existing stockpiles will continue to provide revenue”.

ON FINANCING

  • San Marco Resources Inc., revised it non-brokered flow through private placement announced on October 9, 2019 It now consists of 266,667 shares at a price of $0.15 each (Chunibas project, Sonora).
  • SilverCrest Metals Inc., announced a bought deal financing for aggregate gross proceeds of CAD $80M. Net proceeds will be used to continue the exploration and development of its Las Chispas project in Sonora.
  • Tocvan Ventures Corp., announced that its shares are now listed on the Frankfurt Stock Exchange (FSE) with the symbol TV3. The Company expects that the FSE listing will help increase trading liquidity and facilitate investment in the Company by institutional and retail investors across Europe (El Pilar project, Sonora).
  • First Mining Gold Corp., announced a flow through equity financing for gross proceeds of approximately $2M (San Ricardo project, Sonora).

ON RESOURCES AND DEVELOPMENT

  •  Capstone Mining Corp., reported that the infill drilling program at its Cozamin mine in Zacatecas returned higher grades and wider intercepts than in current reserves. 20 infill drill holes were collared, bringing the total drilled to date to 138 holes of a 200 holes program. Significant drill interceptions were encountered in hole CG-19-S434 with 2.2% Cu and 44 g/t Ag over a true width (TW) of 20.3m, including 5.28% Cu and 97 g/t Ag over a TW of 5m; hole CG-19-S427 with 4.01% Cu and 67 g/t Ag over a TW of 6.1m; hole CG-19-S429 with 1.49% Cu and 51 g/t Ag over a TW of 18.5m, including 1.92% Cu and 70 g/t Ag over a TW of 5.5m; hole CG-19-S433 with 1.27% Cu and 31 g/t Ag over a TW of 24.6m, including 2.99% Cu and 62 g/t Ag over a TW of 7.1m; hole CG-19-S426 with 3.15% Cu and 58 g/t Ag over a TW of 12.2m, including 6.97% Cu and 121 g/t Ag over a TW of 4.1m; and hole CG-19-S418 with 3.98% Cu and 84 g/t Ag over a TW of 8.4m.
  • Starcore International Mines Ltd., released its updated Ni 43-101 mineral reserves and resources at its San Martin Mine in Queretaro. Total proven and probable mineral reserves and resources as September 30, 2019 are 1,434,308 tons of 2.04 g/t Au and 27 g/t Ag for a total of 109.1K Oz AuEq contained. Total inferred and indicated mineral reserves and resources are 1,713,120 tons of 1.91 g/t Au and 19 g/t Ag for a total of 118.4K Oz AuEq contained. The total of Oz AuEq contained in both categories is 227.5K.
  • US Antimony Corporation, provided an update on its Puerto Blanco mill in Guanajuato for its Los Juarez Au-Ag and Sb deposit in Querétaro. It could be ready for cyanide leach testing by the end of December.
  • Mexus Gold US, announced that its new 500GPM Merrill Crowe Au recovery plant is complete and operational. It is capable of handling 3K tonnes a week mining operation and will allow for future expansion as well.

 ON DEALS AND CORPORATE ISSUES

  • San Marco Resources Inc., retained Momentum Public Relations Inc., to assists with strategic business development activities. The agreement with Momentum has a term of 12 months at $8,500 per month (Chunibas project, Sonora).
  • Argonaut Gold Inc., provided an update on its San Antonio project permitting in Baja California Sur. It announced that SEMARNAT issued a ruling to not approve the updated Environmental Impact Assessment (MIA in Spanish), citing that the MIA is non-compatible zoning based on a revised, 2018 zoning plan filed by the Municipality of La Paz. The Company is reviewing all of its options from seeking an amendment to the La Paz 2018 zoning plan based upon the July 2016 supreme court ruling, submitting a revised MIA and legal options.
  • Excellon Resources Inc., provided an update on the ongoing legal action with respect of the La Antigua mining concession included in Excellon´s acquisition of Silver Eagle Mine Inc. in 2009, which includes a portion of the historic mineral resource at Miguel Auza in Zacatecas. Silver Eagle, the Plaintiff, sued Excellon for non-compliance with the agreement and specifically for not operating the Miguel Auza Mine and the Court granted the Plaintiff an award of approximately $23M predominantly in damages for the Miguel Auza mine not being in operation. “Excellon expects this decision to be reversed and rationalized in the federal court system. In the interim, it does not expect any impact on its ongoing business activities”.

ON SOCIAL RESPONSIBILITY

  • Grupo Mexico, through its health and social program called Dr Vagón (the health train), attended nearly 3,000 consultations last week in Delicias, Chihuahua. Specialist of the health train performed 256 mammograms or tests for the detection of breast cancer, Pap smears, and placed the Intra Uterine Device (IUD) in women. Apart from the mastographs and Pap smears, audiometries and vasectomies were performed on men.
  • Industrias Peñoles S.A.B. de C.V., through its Community Center, informed about the planned activities to carry out in the coming Christmas season. Dolores Herrera, coordinator of the center, also announced a proposal for the realization of the Human Development workshop, promoted by the National Association for Personal Improvement AC (ANSPAC), with duration of a year and a half.

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, chalcedonic quartz vein in a low sulphidation epithermal system from a prospect in Durango, Mexico. Photo by Miguel A Heredia.

The Mining and Exploration News in Mexico: Highlights on the Fourth Week of November, 2019

IMG_0788 - copiaBy Jorge Cirett

During the 48th week of the year (November 25th to December 1st, 2019), at least 23 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, The Fourth Forum on Community Relations was held in Hermosillo. Steel production in Mexico decreased 3.6% during October, compared with October of last year; Steel production is 7.8% down for the first 10 months of 2019. The Sombrerete mine in Zacatecas might have to halt work, as a court provided a judicial restriction (“amparo”) under which the strike (commanded by Napoleon Gomez Urrutia) that paralyzed operations for more than ten years, is still valid. Mining and Metallurgical production in Mexico fell 4.2% in September. ON EXPLORATION, in Sonora, Silver Viper has commenced a 5,000 m drill program at its La Virginia project; Magna Gold provided an update on exploration at its Mercedes project near Yecora. In Coahuila, Discovery Metals released rock channel results from the Minerva, Monclova and Puerto Rico properties. In Zacatecas, Advance Gold has started drilling a large chargeability anomaly at its Tabaqueña property. ON MINING, Impact Silver and Discovery Metals released financial results for the third quarter 2019. ON FINANCING, Vangold Mining is to close the third tranche of financing for $707.5 K, while delisting from the TSX. San Marco completed a financing round for $448.6 K. McEwen Mining closed its offering for gross proceeds of US$50 M. VVC Exploration paid CA$200.9 K of debts with shares. Goldplay granted 1.37 M stock options to directors, officers and consultants. Vizsla Resources closed the first tranche of financing for gross proceeds of $3.6 M.  ON RESOURCES AND DEVELOPMENT, Candelaria Mining released results from 20 in-fill holes at Pinos, Zacatecas. Orla Mining expects to initiate open pit operations at Camino Rojo, in Zacatecas, in mid 2021. Peñoles is discussing possibilities to re-open the famous Naica mine, in Chihuahua. Peña Colorada commissioned a new, more sustainable, plant in Minatitlan, Colima. Discovery Metals began re-logging 132,000 m of historic drilling at Cordero, in Chihuahua, along with an airborne magnetic and electromagnetic survey, aiming to produce higher grade zones within the resource and new exploration targets outside it.  ON DEALS AND CORPORATE ISSUES, Azure Minerals overturned the cancellation of a key mineral concession on its gold-cobalt-copper skarn Sara Alicia project in Sonora. Tocvan Ventures agreed with Colibri Resource the acquisition of the Pilar project in Sonora. Tamino Minerals signed a LOI on the Ofelia project, in Sonora. Discovery Metals released results for the third quarter 2019, period during which the company acquired all shares from Levon, and thus the Cordero project in Chihuahua. ON SOCIAL RESPONSIBILITY. The Mining Baseball League was created, and the first game between the Nacozari and Caborca teams was held in Nacozari, Sonora. The fifth Caborca Health Fair sponsored by Penmont and the UNAM foundation was held in El Coyote Ejido, providing more than 3,600 specialized services. The Peña Colorada mine commissioned one km of cobble stone road to connect two communities in Jalisco. Orla Mining is working alongside three communities in Zacatecas, aiding in education related programs and water supply. Grupo Mexico has an exhibition at its Casa Grande in Nacozari. Ternium and the IMSS held a Health Fair in Colima. Peñoles had a Health Journey in Teleolapan, Guerrero. The spread of renewable energy production is changing the environmental impacts of mining project worldwide.

ON MEXICO ISSUES

  • The fourth Foro Minero de Relaciones Comunitarias (Community Relations Mining Forum) was held in Hermosillo on November 22, organized by the Sonora Mining Cluster, with the presence of the State governor, Claudia Pavlovich. Among the personalities present were Francisco Quiroga (Mining Subsecretary), Fernando Alanís (Camimex), Alberto Orozco and Gildardo Montenegro (Sonora Mining Cluster), Elia Tello (USA Consul), Manuel Barbera (from the Australian Embassy) and Alfonso Reyna (Construplan). The event had the presence of 360 attendees, almost twice the expected attendance.
  • On the Fourth “Foro Minero de Relaciones Comunitarias” (Community Relations Mining Forum), Fernando Alanís Ortega, Camimex President, elaborated on how the mining business model has evolved towards co-responsibility, and the advances the mining sector has provided for social development in Mexico. He spoke on behalf of Peñoles and the Camimenx, citing the numerous contributions by the company that generates 32,950 direct jobs and 34,598 indirect jobs, with $29,544 M pesos in salaries in 2018. Among the industry numbers presented are: Total investment on social development in 2018, $253.5 M pesos (US$13.2 M), 176 K beneficiaries, 55.5 K medical consults, $51,871.4 M pesos in salaries, over 500 alliances with ONG’s and governments, Environment investment of $803 M pesos, almost 580 K trees planted, 1,360 scholarships and 55 community centers in 40 localities.
  • Steel production in Mexico saw a decrement of 3.6% in October, accumulating a loss of 7.8% on production in the first 10 months of the year 2019. Worldwide, the reduction reached 2.8%, compared with the production of a year ago. In Mexico, the decrease has been due to poor numbers in construction and the automobile industry, as a result of the current economic stagnation.
  • An “amparo” or judicial restriction was granted to the Sindicatio Nacional de Trabajadores Mineros, Metalúrgicos, Siderúrgicos y similares de la República Mexicana, headed by the Morena senator Napleón Gómez Urrutia. Under the resolution Grupo México should respect the strike on the San Martín de Sombrerete mine in Zacatecas, which was declared in 2007 (Note by GPM.- The mine has been in operation by another union since August of 2018, and this ruling probably means all work is to be halted. Bad news for Sombrerete).
  • The mining and metallurgic production in Mexico fell by 4.2% in September. Among the losers, gold production decreased 22.3%, sulphur 13.2%, 12.7% fluorite, 12% lead, 11.2% gold, 2.2% silver and 1.2% copper. On the other hand, coal production increased by 7.2%, zinc by 2.0% and gypsum by 1.3%

ON EXPLORATION

  • Goldplay Exploration Ltd. Released results on its maiden drill program at the Nava target, within its San Marcial property in Sinaloa. Highlighted results from the first four drill holes comprise 1.00 m @ 354 gpt Ag (including 0.15 m @ 1,377 gpt Ag) in one hole; 0.45 m @ 0.21 gpt Au, 196 gpt Ag; 4.10 m @ 0.38 gpt Au; 0.95 m @ 2.35 gpt Au; 3.75 m @ 0.50 gpt Au; 2.30 m @ 0.42 gpt Au (including 0.10 m @ 8.94 gpt Au); 1.00 m @ 0.74 gpt Au, in other hole, and 0.95 m @ 1.22 gpt Au, 10 gpt Ag in another hole.
  • Silver Viper Minerals Corp. has commenced drilling at its La Virginia project in Sonora. The program envisages 5,000 m of drilling in approximately 20 holes, starting on El Rubi zone, where previous drilling intersected 13.30 m (6.0 m true width) @ 3.16 gpt Au, 228 gpt Ag. The last campaign encountered mineralization over 100 m of strike length, and phase II of drilling is designed to test for the extension on strike and at depth on 50 m sections. The program will continue to probe prospective targets.
  • Advance Gold Corp. has started drilling to test the chargeability anomaly identified on a recent 3D induced polarization survey on its Tabasqueña property in Zacatecas. The chargeability anomaly is 1,000 m long by 500 m in width, remaining open to the north, south and to depth.
  • Magna Gold Corp. provided an update of work on four areas of the Mercedes project in Sonora. Drilling at La Lamosa confirmed oxide mineralization and a follow-up program is being contemplated to test the southeast dip and the extent to the North. At Mina de Oro gold occurs in a silicified dacite intrusive rock on a 330 m by 150 m belt that is still open. Historic workings have returned samples of up to 1.2 m @ 63.2 gpt Au; 1.2 m @ 8.6 gpt Au; 0.3 m @ 11.1 gpt Au. A drill program is planned for 2020 on this target. At Salto Colorado a matrix supported breccia is 300 m long and 60 to 150 m in width, developed in intrusive rocks at the contact with a volcanic rock package. Eight samples in this target are over 1 gpt Au, peaking at 8.52 gpt Au, 460 gpt Ag, 4.0% Pb, 4.2% Cu in a sample from a small working. At La Cueva/Nochebuena a matrix supported breccia 120 m by 80 m has returned up to 0.76 gpt Au, 80 gpt Ag and >1% Cu. The La Cueva breccia is 300 m by 10 to 50 m in width with one sample of 13 above 1 gpt Au.
  • Discovery Metals Corp. released results from channel sampling at Minerva, in Coahuila, where 52 of 78 samples returned values >500 gpt AgEq, averaging 0.6 m @ 710 gpt Ag, 13.1% Zn, 8.8% Pb, 0.2% Cu. At Monclova, in Coahuila, a maiden drill program is being planned along 1.5 km of a contact zone between an intrusive and limestone. At Puerto Rico, in Coahuila, the company is having the land re-designated, and once the process is completed, will submit the drill permit application.

ON MINING

  • Impact Silver Corp. announced financial results for the third quarter 2019. Throughput at the mill in its Minas de Zacualpan unit was 34.95 K tonnes @ 165 gpt Ag to produce 179.5 K Oz Ag, with the greater share of production coming from the Guadalupe mine. EBITDA was $0.3 M and net loss for the quarter $0.2 M, with a cash position of $4.4 M by the end of the period (with a non-brokered private placement for aggregate gross proceeds of $4.95 M).

ON FINANCING

  • Vangold Mining Corp. informed the first tranche of its private placement was closed in March with gross proceeds of $335 K and a finder’s fee of $9.45 K. The second tranche was closed on May, for gross proceeds of $248 K, paying a finder’s fee of $14.25 K and 285 K warrants. Vangold expects to close the third and final tranche of the private placement, for gross proceeds of $707.5 K, with no finder’s fee payable. The company has also entered into debt settlements agreements with two creditors to settle $20.2 K, including $10 K in management fees with an executive officer. Vangold is also to apply for a listing on the Canadian Securities Exchange (CSE) and delist from the TSXV (Pinguico, Guanajuato).
  • San Marco Resources Inc. completed a financing round for gross proceeds of $448.6 K, paying a 6% finder’s fee in cash ($12.1 K) and 6% finder warrants (Chunibas, Sonora).
  • McEwen Mining Inc. closed its previously announced offering, for gross proceeds of US$50 M (El Gallo, Sinaloa).
  • Discovery Metals Corp. released financial and operating results for the third quarter 2019. During the period the company acquired all shares from Levon (Cordero, Chihuahua) and completed a non-brokered private placement for $9 M. On November 5, Discovery completed a non-brokered private placement for gross proceeds of $19 M. On November 18, the company commenced trading on the OTCQX Best Market in the US. By the end of the period the company had cash and cash equivalents of $9.97 M
  • VVC Exploration Corp. announced that an aggregate of CA$200.9 K of indebtedness was converted into shares and warrants, with two insiders of the company participating in the debt conversion. On October 25 the company closed a private placement for CA$2 M (US$1.5 M) for development of the Kaity property in Chihuahua.
  • Goldplay Exploration Ltd. has granted 1.37 M stock options to directors, officers and consultants of the company, for a term of five years (San Marcial, Sinaloa).
  • Vizsla Resources Corp. closed the first tranche of $3.6 M of the previously announced $4 M private placement. The balance of the offering is expected to closed by December 5, 2019. The company expects to close the previously announced $2 M non-brokered private placement on December 6, 2019. (Panuco-Copala, Sinaloa).

ON RESOURCES AND DEVELOPMENT

  • Candelaria Mining Corp. announced in-fill drill results from 20 holes on the Cinco Estrellas vein at the Pinos project in Zacatecas. Highlighted true width (tw) intervals comprise: 2.0 m @ 4.2 gpt Au, 92 gpt Ag; 1.0 m @ 2.1 gpt Au, 45 gpt Ag; 1.0 m @ 2.3 gpt Au, 6 gpt Ag; 2.5 m @ 3.7 gpt Au, 62 gpt Ag; 2.9 m @ 3.4 gpt Au, 29 gpt Ag; 1.0 m @ 6.0 gpt Au, 16 gpt Ag (including 0.4 m @ 12 gpt Au, 21 gpt Ag); 0.7 m @ 3.0 gpt Au, 25 gpt Ag; 1.0 m @ 3.3 gpt Au, 54 gpt Ag; 1.3 m @ 6.7 gpt Au, 51 gpt Ag (including 0.5 m @ 15.5 gpt Au, 110 gpt Ag); 0.9 m @ 3.1 gpt Au, 91 gpt Ag; 1.1 m @ 4.3 gpt Au, 15 gpt Ag. The weighted true width average is 1.5 m.
  • Orla Mining Ltd. is to initiate open pit operations in June of 2021 on its Camino Rojo property in Zacatecas, according from Camimex sources. The company has already started to work with three local communities inhabited by more than 1,200 persons.
  • Industrias Mineras Peñoles, along with communal farmers (Ejido), the Naica Community in Chihuahua, the municipality authorities and the Subsecretary of Mining are in talks for the reactivation of the Naica mine. Along the agreements is the investment of US$8 M on exploration, and the support of the Subsecretary of Mining for the authorization of the use of the mine waters for agricultural use, and the evaluation of subsidies for the conditioning of irrigation channels. The company offered to provide the equipment and its maintenance, with the ejido taking care of the electricity bills.
  • Peña Colorada commissioned the “Planta de Pastas” on the Centro Industrial Paticajo, in Minatitlan, Colima. The more than 850 M pesos investment (~US$45 M) plant is technologically innovative and conductive to sustainable production.
  • Discovery Metals Corp. begun re-logging of the geology of the 132,000 m of historic drill core at Cordero, Chihuahua, with an actual advance of 50% to date. In September a rig was mobilized, and second one early in November, completing 3,600 m in 11 holes, of the 30,000 to 35,000 m to be completed before the end of 2021. A 5,100 line—km airborne magnetic and electromagnetic survey began in early November, to cover the 35,000 ha property, to define new targets based on the signature of the current resource area.

ON DEALS AND CORPORATE ISSUES

  • Alio Gold Inc. informed a settlement agreement has been signed with Maverix Metals Inc. regarding disputed royalty payments at the company’s Florida Canyon mine (San Francisco, Sonora).
  • Azure Minerals Ltd. overturned an historical cancellation of the Sara Alicia II mining concession that adjoins its Sara Alicia property in Sonora, completing the acquisition of the property. This event increases the area held by the company in the area from 9 to 49 hectares. The acquisition was closed with the payment of $80 K to the owners of the concession. The mineralization previously intersected by Azure is related to strong magnetic high, same that continues for more than 300 m into the Sara Alicia II concession.
  • Tocvan Ventures Corp. signed the agreement to acquire the Pilar project in Sonora, from Colibri Resource Corp.. Tocvan has advanced the first year’s cash payment of $125 K and issued 2 M shares. Tocvan must complete a $2 M of exploration in the property over five years and pay Colibri $275 K over five years in installments of $50 K, $75 K, $75 K, and $75 K on the second, third, fourth and fifth anniversary of the signing, to obtain 51% of interest in the property. To acquire the remaining 49% interest, an additional payment of $2 M must be done to Colibri within 6 months of the fifth anniversary.
  • Tamino Minerals Inc. signed a letter of intention (LOI) on the potential acquisition of the Ofelia project in Sonora. The 19 hectares claim has rock chip samples returning over 1 Oz Au per ton.
  • Discovery Metals Corp. released financial and operating results for the third quarter 2019. During the period the company acquired all shares from Levon (Cordero, Chihuahua)

ON SOCIAL RESPONSIBILITY

  • The sub-secretary of Mining, Francisco Quiroga threw the first ball on the Mining Baseball League (recently created to strengthen ties in the mining industry) in the game between the Nacozari (Grupo Mexico) and Caborca (Fresnillo) teams. Grupo Mexico has 16 teams in nine States within the Mining League.
  • The 5th Caborca Health Fair, sponsored by Penmont and the UNAM Foundation, was held on the nearby El Coyote Ejido (community). More than 3,600 specialized services like medical treatments and revisions, with the majority having dental checks and 600 sight checks. The Universidad de Sonora realized 297 blood tests, the Instituto Mexicano del Seguro Social (IMSS) applied 500 influenza shots and the Secretaría de Salud provided more than five thousand services in 12 service modules, among which were general consultations, reproductive health, prostate, breast and cervical cancer detection.
  • The Peña Colorada mine delivered to the authorities in Cuautitlan de García Barragán in Jalisco, one kilometer of cobble stone road between the Ayotitlan and Las Marías communities, as well as a vehicle to the Municipality DIF (Integral Family Development System). The company is also to provide funds for the development of a water well to service the Cerro Prieto, La Astilla and Las Pesadas communities.
  • Orla Mining Ltd. is working with three communities in the state of Zacatecas, well ahead of its intended start of production on its Camino Rojo property. Among the social responsibility practices by the company is the construction of a building for children of pre-school age, support on water well equipment, and educative programs linked with the “Instituto Zacatecano de Educación para los Adultos” and Summer courses.
  • Casa Grande, in Nacozari, Sonora, is the venue for the “Minerals, the skin our Earth” exhibition sponsored by Grupo Mexico. The company has 16 “Casa Grande” community centers in 11 States, where workshops take place, along with artistic and cultural activities.
  • Ternium’s Health Fair was held in Colima, providing pediatric, geriatric and gynecology medical and optometry services to the population, in coordination with the Health Secretariat of Colima and the local Instituto Mexicano del Seguro Social (IMSS).
  • Industrias Mineras Peñoles. is conducting, in alliance with Fundación UNAM, a Health Journey (Jornada de Salud) in Teleolapan, at the Centro de Salud of Tehuixtla, in Guerrero, near its Capela project.
  • Renewable Energy has a positive influence in the Mining Sector. According to Fitch Solutions, mining companies are aware of the decrement of production costs in renewable energy. Some of the most common energy technologies applied by the sector include wind, solar, bio-diesel, geotermic, hydroelectricity and hydrogen. Currently, 1 GW of renewable energy is generated at mine sites worldwide, and another 1 GW is under construction.

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: K-Feldspar alteration in metamorphic rocks, from a project in Oaxaca. Picture by Jorge Cirett.

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The Mining and Exploration News in Mexico: Highlights on the Second Week of November, 2019

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By Jorge Cirett

During the 46th week of the year (November 11th to November 17th, 2019), at least 23 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, mining investments in Mexico decreased from 8 billion dollars in 2018 to 5 billion dollars in 2019. Camimex held a fiscal seminar in Queretaro. Almaden Minerals published a letter on indigenous population around the Ixtaca project in Puebla. Promperú organized in Hermosillo, Sonora, a Commercial Mission of suppliers to mining in Peru. The top ten silver miners in Mexico produced 39.8 M Oz in the third quarter 2019. The mining industry in Mexico has been subject in the past few years of regulatory hurdles that are having a negative effect in investment in the sector, the last one being the decision by SEMARNAT not to authorize the MIA on the Ixtaca project in Puebla until there is a resolution on a legal suit on a piece of land no longer held by the company running the project.  ON EXPLORATION, in Sonora, Evrim updated on exploration of the El Llanito del Nogal property; Magna Gold reported assay results from four more holes at Mercedes. In Sinaloa, Vizsla Resources released high-grade results from rock channel sampling at Panuco.  ON MINING, Premier Gold, Golden Minerals, Starcore International, Americas Gold and Silver, Sierra Metals, Odyssey Marine Exploration and Fortuna Silver presented third quarter 2019 results. Consolidated Zinc and Industrias Peñoles signed an offtake agreement on zinc concentrate. ON FINANCING, Tamino Minerals informed on trading volumes. Mexican Gold received TSX approval for the listing of 50 M warrants from a previous financing. Colibri Resources entered into a loan agreement with Agnico Eagle for $300 K.  ON RESOURCES AND DEVELOPMENT, Defiance Silver is to start a two-phase technical program at San Acacio, Zacatecas. Endeavour Silver reported positive drill results on recently acquired El Curso concession within its Guanaceví property. Peñoles is to invest $70 M at its processing facilities in Torreon. SilverCrest released high-grade results from drilling at the Babi Vista vein at Las Chispas, in Sonora. Bacanora Lithium updated on project development on its Sonora project. ON DEALS AND CORPORATE ISSUES, Evrim signed an agreement with San Marco Resources to acquire the Suanse property in Sonora. Colibri Resources extended an agreement with Agnico Eagle on the disposal of Colibri’s share on the Pitaya project in Sonora.  ON SOCIAL RESPONSIBILITY. Peñoles is conducting courses for children and adults at its Torreon community center. Ternium is organizing health festivals in Nuevo Leon, Coahuila, Jalisco, Michoacan, Puebla and San Luis Potosi. Argonaut sponsored the third edition of the La Colorada race, within the pit benches at the mine in Sonora. The “Doctor Vagón”  itinerant health clinic sponsored by Grupo Mexico provided service to 550 persons in Gomez Palacio, Durango. La Brisa mining company provided cleaning equipment to the Topia community in Durango. Peñoles mining units source 35% of its energy requirements by removable sources, and expects to reach 100% by 2028.

ON MEXICO ISSUES

  • During 2019 investments in the mining sector are to reach five billion (5 mil millones) dollars, according to Francisco Quiroga, Subsecretary of Mining. That’s a decrease from the eight billion (8 mil millones) invested in 2018.
  • Camimex organized the Seminario Fiscal de la Industria Minera in Queretaro. Camimex compromise is complete on its involvement on the “mesa de diálogo” (dialogue meetings) with the federal government, where proposals to incentivize investment are to be exposed, checking on subjects like the fiscal situation, regulatory environment and security. The head of Camimex, Karen Flores, explained that on the Fraser Institute study Mexico is number 71 of 83 jurisdictions on the fiscal regime. Camimex is for the 100 percent deduction of exploration expenses, and the establishment of pacts of fiscal stability on a 15 to 20 year time frame, as is Peru, Chile and Argentina. In a comparative study, Mexico has the heaviest fiscal load among peers like the US (Arizona), Canada (Ontario), Peru and Chile.
  • Minera Gorrión (Almaden) published a letter on indigenous population around the Ixtaca project in Puebla. Although indigenous persons inhabit the area, there is not such an indigenous community within the area of influence of the project. The company stresses the misinformation produced by some activists groups with total impunity, and reaffirms its confidence on institutions and the rule of law.
  • Promperú organized in Hermosillo, Sonora, its II Commercial Mission of Suppliers to Mining in Peru. Several conferences were presented by members of the mining communities and governments of both countries.
  • The top 10 silver mining companies in Mexico had a solid third quarter. During the period these companies produced 39.8 M Oz, compared with 39.0 M Oz produced on the same quarter a year ago. The top producer is Industrias Peñoles, with 15.3 M Oz almost 40% of that amount and 2.2 M Oz less than the same quarter 2018 (Fresnillo, Saucito, San julian, Sabinas). Newmont was the second largest producer with 7.4 M Oz produced at Peñasquito. Other large producers comprise Southern Copper with 3.9 M Oz (undisclosed units), Pan American with 3.6 M Oz (La Colorada), First Majestic (Santa Elena, San Dimas, among others), Coeur Mining with 1.7 M Oz (Palmarejo), Fortuna Silver with 1.7 M Oz Ag (San José), Minera Frisco 1.1 M Oz (El Coronel, San Felipe, Tayahua, San Francisco del Oro, Concheño and Ocampo), Endeavour Silver 900 K Oz (El Cubo, Bolañitos, Guanceví, and El Compás) and Agnico Eagle 800 K Oz (Pinos Altos).
  • Alberto Aguilar, a respected columnist in business circles, elaborated on the hurdles the mining industry is going through with the current federal administration (it fell 3.7% on the third quarter, 2019). Among the issues mentioned is the contraction in mineral production as a result of the imposition of new taxes on mining in 2014, the investment of only 5 billion dollars in 2019 (8 billion in 2018), no concessions have been granted in 2019 and the recurrent illegal blockades without sign of easing. The latest hurdle thrown at the industry is the resolution by SEMARNAT (the Mexican environmental agency) that the Manifestation on Environmental Impact (MIA) for the Ixtaca project in Puebla was not to be granted until a legal suit on a claim no longer held by Minera Gorrion (Almaden Minerals) reaches a resolution. Exploration expenses so far have been $40 M dollars and another $117 M are still to be spent, along with $1.1 B (One billion) to be invested in eleven years (GPM Note.- The head of SEMARNAT, Victor Toledo, is known for its public and vocal anti-mining stance).

ON EXPLORATION

  • Vizsla Resources Corp. released high-grade channel sampling at its Panuco property in Sinaloa. The sampling locations are widespread within the property and the highlighted results comprise: 0.9 m @ 1,860 gpt Ag, 14.55 gpt Au at the Napoleon vein; 0.5 m @ 1,900 gpt Ag, 29.30 gpt Au at the San Antonio-Cordon de Oro vein; 3.6 m @ 691 gpt Ag, 7.00 gpt Au at the San Carlos-Animas vein; 5.95 m @ 584 gpt Ag, 3.97 gpt Au. Veins in the project have lengths of up to 2.8 km, with known ore shoots of up to 500 m in length.
  • Evrim Resources Corp. updated the description on its El Llanito del Nogal property in Sonora. The Suanse porphyry target, is a 1 Km by 600 m area of propylitic to potassic alteration. Soil sampling outlined a 600 m by 500 m Cu anomaly (>100 ppm) in areas of sheeted quartz-chalcopyrite-chlorite-magnetite veins. A ground magnetic survey outlined a donut-shaped anomaly 400 m in diameter and roughly coincident with the soil anomaly. The soil and magnetic anomalies extend northward onto the Suanse claim (see deals section below) where strong argillic, advanced argillic along with vuggy and massive quartz alteration are interpreted as a partially eroded lithocap.
  • Magna Gold Corp. reported assay results on the last four RC holes drilled at the La Lamosa target on its Mercedes project in Sonora. Highlighted intervals comprise: 38.10 m @ 0.67 gpt Au, 13.2 gpt Ag (including 6.10 m @ 1.43 gpt Au, 42.9 gpt Ag); 28.96 m @ 0.76 gpt Au, 8.9 gpt Ag (including 7.62 m @ 1.06 gpt Au, 9.3 gpt Ag); 21.34 m @ 1.61 gpt Au, 2.2 gpt Ag (including 3.05 m @ 6.99 gpt Au, 3.9 gpt Ag); 21.34 m @ 1.21 gpt Au, 11.8 gpt Ag (including 3.05 m @ 4.26 gpt Au). Other targets to follow up include the 600 m long La Lamosa East projection, the Mina de Oro 300 m by 150 m silicified/argillized andesite and rhyodacite, the Salto Colorado breccia 400 m by 150 m in size and Noche Buena, forming a prominent ridge in a 900 m by 800 m area with tourmaline breccias.

ON MINING

  • Premier Gold Mines Ltd. Reported operating results for the third quarter 2019, including figures from its operations in Mexico. At Mercedes, in Sonora, 159.4 K tonnes were milled @ 2.94 gpt Au, 22.6 gpt Ag, recovering 95.9% Au, 32.3% Ag to produce 14,481 Oz Au, 37.5 K Oz Ag at co-product cash cost $1,095 per Oz Au, and co-product AISC $1,354 Oz Au.
  • Golden Minerals Co. announced financial results for the third quarter 2019. The company had revenue of US$1.9 M and a net operating margin of $1.3 M related to the lease of the Velardeña oxide plant to Hecla Mining Co.. By the end of the period the company had cash and cash equivalents of $2.9 M. During October an agreement was achieved with Magellan Gold Corp. to option a 100% interest in the Santa Maria and Las Marias exploration properties in Chihuahua.
  • Consolidated Zinc Ltd. signed and offtake agreement with Industrias Peñoles S.A. de C.V. for zinc concentrate produced from the Plomosas mine to December 2020, with an option to be extended for a further two years.
  • Starcore International Mines Ltd. released production results from its San Martin mine in Queretaro for the three months ended on October 31, 2019. During the period 54.1 K tonnes were milled @ 1.78 gpt Au, 34.2 gpt Ag, with a recovery of 87.35% Au, 52.27% Ag to produce 3,050 Oz AuEq.
  • Americas Gold and Silver Corp. reported consolidated and operational results for Q3 2019, with undisclosed figures from its Mexican operations (Cosalá, Sinaloa).
  • Sierra Metals Inc. reported third quarter 2019 results, including information from its Mexican operations. The company is approaching is production target of 4,250 tpd at Bolivar and 1,200 tpd at Cusi, both in Chihuahua. Bolivar’s cash cost per CuEq Lb was $1.40, and the AISC $2.53. Cusi’s cash cost was $18.77 and AISC $24.60. During the period 9,923 m were drilled from the surface at Bolivar, and 3,220 m within the Cusi mine. At the end of the period cash and cash equivalents were $40.1 M, with a net debt of $50.9 M.
  • Odyssey Marine Exploration Inc. reported results for the third quarter 2019. Net loss for the period was $4.2 M due to several non-recurring items (Exploraciones Oceánicas project, Baja California Sur).
  • Fortuna Silver Mines Inc. reported third quarter results for 2019, including figures from its Mexican operations. At San José, in Oaxaca, 268 K tonnes were milled at a rate of 3,046 tpd and a grade of 219 gpt Ag, 1.40 gpt Au, recovering 91% Ag, 91% Au to produce 1.7 M Oz Ag and 10,942 Oz Au at cash cost $7.70 per Oz AgEq and an AISC of $10.80 per Oz AgEq.

ON FINANCING

  • Tamino Minerals Inc. informed that during the third week of September the company traded 145 M shares with a volume of US $1.1 M and a price per share appreciation of US$0.01” (El Volcan, Sonora).
  • Mexican Gold Corp. has received TSX Venture Exchange approval for the listing of 50 M warrants from the non-brokered private placement announced in past July.
  • Colibri Resource Corp. has entered into a loan agreement with Agnico Eagle Mines Ltd. For proceeds of US$300 K. The loan has a 2 year term at a 10% interest rate and proceeds are to be used on the Evelyin project in Sonora.

ON RESOURCES AND DEVELOPMENT

  • Defiance Silver Corp. is to start a two-phase technical program at its San Acacio property in Zacatecas. The program envisages evaluating the San Acacio resource at depth and brownfield targets on the Veta Grande system.
  • Endeavour Silver Corp. reported positive initial drill results for El Curso property, adjacent to Endeavour’s Guanaceví mine in Durango. The property includes the Santacruz vein, which is between two Endeavour’s developments. Drilling highlights comprise true width (tw) intervals: 5.2 m @ 0.75 gpt Au, 465 gpt Ag; 2.6 m @ 1.23 gpt Au, 558 gpt Ag; 2.1 m @ 2.51 gpt Au, 935 gpt Ag; 2.5 m @ 0.40 gpt Au, 204 gpt Ag; 5.1 m @ 3.07 gpt Au, 1,182 gpt Ag (including 0.5 m @ 15.22 gpt Au, 5,372 gpt Ag); 4.3 m @ 2.2 gpt Au, 1,021 gpt Ag; 2.7 m @ 1.37 gpt Au, 355 gpt Ag; 6.2 m @ 1.70 gpt Au, 635 gpt Ag.
  • Industrias Peñoles S.A.B de C.V. is to invest US$70 M in its Met-Mex installations (in Torreon, Coahuila) to better the silver recovery in zinc concentrates. In 2018, the company commissioned a US$327 M modification on the plant that avoids the generation of additional sulphuric acid by direct concentrate leaching instead of roasting, augmenting the capacity from 240 K to 360 K tonnes of zinc.
  • SilverCrest Metals Inc. announced expansion drill results from the Babi Vista vein in the Babicanora area of the Las Chispas project in Sonora. The highlighted true width (tw) intervals from these 17 holes comprise: 2.3 m @ 2.27 gpt Au, 215 gpt Ag; 0.4 m @ 3.55 gpt Au, 385 gpt Ag; 0.9 m @ 4.86 gpt Au, 600 gpt Ag; 0.4 m @ 1.10 gpt Au, 187 gpt Ag; 0.6 m @ 1.09 gpt Au, 92 gpt Ag; 2.0 m @ 1.84 gpt Au, 433 gpt Au, 1.2 m @ 2.56 gpt Au, 296 gpt Ag; 8.8 m @ 7.36 gpt Au, 584 gpt Ag (including 0.3 m @ 120.50 gpt Au, 9,510 gpt Ag; 0.7 m @ 18.15 gpt Au, 1,495 gpt Ag); 6.6 m @ 3.37 gpt Au, 250 gpt Ag (including 0.4 m @ 32.70 gpt Au, 2,940 gpt Ag). So far the high-grade footprint is 150 m along the strike of the vein and 200 m to depth, open in most directions, averaging 2.2 m @ 4.70 gpt Au, 401 gpt Ag.
  • Bacanora Lithium plc. updated on project activities at its Sonora Lithium project. Final design work for the mine site, infrastructure, concentrator and kiln sections of the processing plant is in progress. Detailed engineering plans for the design of the front-end concentrator and mechanical processing is underway, as well as the pyrometallurgical engineering, while the hydrometallurgical plant, including the production of the final battery grade lithium product will be engineered by Ganfeng.

ON DEALS AND CORPORATE ISSUES

  • Evrim Resources Corp. signed an agreement with San Marco Resources to acquire the Suanse property in Sonora. The 1,115 hectares property is within Evrim’s Llano del Nogal claim. Evrim can acquire 100% interest in the project by making total cash payments of $75 K and granting San Marco a 1% royalty half of which can be repurchased for $1 M. Cash payments are: $25 K on signing, $25 K on signing a JV or partnership with third parties and $25 K upon completion of 1,000 m of drilling.
  • Colibri Resource Corp. granted a two-year extension to its agreement with Agnico Eagle Mines Ltd., allowing Agnico to exclusively explore opportunities to dispose of Colibri’s working interest in its JV on the 5,564 hectares Pitaya project in Sonora.

ON SOCIAL RESPONSIBILITY

  • The Peñoles Community Center (Centro Comunitario Peñoles) in Torreon, Coahuila, is conducting courses for children and adults, including English, music, drawing, tae kwon do, tae chi and modern dance and dance for weight reduction.
  • Ternium organizes the Health Festivals (Ferias de La Salud) in Nuevo Leon, Coahuila, Colima, Jalisco, Michoacan, Puebla and San Luis Potosi, in coordination with several organizations and government institutions. Each year almost 6,000 persons receive this benefit, including cost-free diverse medical examinations (like sight, Papanicolau, mamographies) and flu shots.
  • The La Colorada race was held in Sonora for the third time. The race sponsored by Argonaut Gold was attended by hundreds of runners on the benches of La Colorada mine.
  • The technical school Roberto Rocca (partly supported by Ternium) is to represent Mexico in the World’s Educative Robotics Tournament, to be held in Shanghai, China.
  • The “Doctor Vagón” program sponsored by the Grupo Mexico Foundation (a train adapted for medical services) was four days at Gomez Palacio, Durango, with the aid of the local municipality. During that time 2,200 services were provided to the 550 persons that registered to the effect.
  • In Topia, Durango, Minera La Brisa supported the municipality providing cleaning equipment.
  • Industrias Mineras Peñoles announced that to 2018 up to 35% of the energy requirements at its mining units is fulfilled by renewable energy sources. The company is striving to reach at least a 50% in 2020 and to be completely reliant on renewable energy sources by 2028.

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: Gold recovered by artisanal methods from orogenic style quartz veins in Oaxaca.. Picture by Jorge Cirett.

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The Mining and Exploration News in Mexico: Highlights on the First Week of November, 2019.

Mn oxide-calcite fault vein-bx

By Miguel A Heredia

During the forty-five week of the year (November 4th to November 10th, 2019), at least 37 press releases were announced by companies working in Mexico, with nine communicating production and financial results, eight disclosing deals and corporate issues, six announcing financial rounds, five informing on exploration results, four reporting on resources and development of their projects, three commenting on Mexican issues, and two discussing issues on social responsibility.  ON MEXICO ISSUES, according to the Director of Mines of Zacatecas, there are five new mine projects in the state to be developed in 2020. Newmont-Goldcorp restated the dialogue process with the Cedros community on its Peñasquito mines in Zacatecas. Local communities and small local merchants expressed their support for the continuity of the Peñasquito mine. ON EXPLORATION, In Sonora, Silver Viper mobilized an exploration crew to its Virginia project to commence a drilling program at the El Rubi target area, and Oceanus reported underground and surface sampling results from its El Tigre project. In Sinaloa, Vizsla reported underground sampling from its Panuco-Copala project.  In Zacatecas, Advance Gold outlined a km long by 400-500m wide chargeability anomaly at its Tabasqueña project. In Jalisco, GoGold released drill results from 4 holes collared at its Los Ricos project.  ON MINING, Alio Gold, Argonaut, Coeur, Endeavour, Excellon, First Majestic, Hecla, Leagold, and Pan American presented Q3 2019 production and financial results from its Mexican operations.  ON FINANCING, Discovery Metals closed a non-brokered private placement for gross proceeds of $19M (Cordero project, Chihuahua). Goldplay closed a brokered private placement for $3M (San Marcial project, Sinaloa).Solaris Copper announced its intention to undertake a non-brokered private placement to raise gross proceeds of up to  CAD $5.5M (La Verde, Michoacan). Advance Gold closed the first tranche of a non-brokered private placement for gross proceeds of $113K (Tabasqueña project, Zacatecas). Orex announced that intends to undertake a non-brokered private placement to raise gross proceeds of up to $1M (Sandra-Escobar project, Durango). San Marco revised its previously announced non-brokered private placement and now intends to rise gross proceeds for up to CAD $376.6K. It also closed subscription books for unit and flow through shares private placement for gross proceeds of CAD $40K (Chunibas project, Sonora). ON RESOURCES AND DEVELOPMENT, Capstone announced high grade Cu-Ag results from 103 infill and step-out drill holes at its Cozamin mine in Zacatecas. Vizsla closed its option agreement to acquire 100% interest of Panuco-Copala project in Sinaloa. Torex extended mineralization 150m below current reserves at its El Limon Deep deposit in Guerrero. Mexus announced that its Merrill Crowe Au recover plant is complete and operational at its Santa Elena mine in Sonora. Mag Silver informed about the activities carried out at its Juanicipio project mine development in Zacatecas during Q3, 2019. ON DEALS AND CORPORATE ISSUES, Colibri received TSX approval for its acquisition of Yaque Minerals (Mezquite and Jackie projects, Sonora). Vizsla closed its option agreement to acquire 100% interest in Panuco-Copala property in Sinaloa. Great Panther announced the appointment of its VP Exploration and VP People & Culture (Topia mine, Durango). Solaris Copper announced management changes of its team (La Verde project, Michoacan). Starcore presented results from its annual general meeting of shareholders (San Martin mine, Queretaro). Mako Mining provided a corporate update and status of its Mexican operation. Compañía Minera Cuzcatlán, a subsidiary of Fortuna Silver Mines revealed that it is analyzing to invest in a new plant in Mexico (San Jose mine, Oaxaca). Minera Autlán announced its intention to raise its commitment to gold (Lluvia de Oro-La Jojoba, Sonora). ON SOCIAL RESPONSIBILITY, Agnico Eagle participated in the reconstruction of the drinking water system at Yepachi, Chihuahua, with a total investment of MXP $4M. Argonaut participated in multiple social programs related to their Mexican operations.

ON MEXICO ISSUES

  • The Secretariat of Economy in Zacatecas, through its Director of Mines, revealed that new five mines will be developed in the state in 2020, standing out Juanicipio in Fresnillo, Camino Rojo in Mazapil , and San Nicolas in Villa Garcia municipalities. Zacatecas is one of the most prolific areas for mining in the country; however, he is aware of the social problems faced by some of the mining companies which operate in the state. He informed that the local government seeks to generate the conditions for mining companies to invest safely in new projects.
  • Newmont-Goldcorp Corporation, restated the dialogue process with the community of Cedros, municipality of Mazapil on Peñasquito mine. A new agreement was signed for the community delegates, with a strong commitment of both parties, by the community not to block again the mine and from the company to attend on time the concerns and proposal from the Ejido.
  • Local communities and small local merchants, expressed their support for the continuity of Peñasquito mine. The communities of Cedros, El Rosario, La Pardita, Sábana Grande, Tanquecillos, Tecolotes, Mazapil and El Trigo said they are in favor of the Peñasquito Mine, stating that it has provided benefits to their families. At a press conference, representatives of the aforementioned communities reported that thanks to the company they have work, so they asked the state government to support them and that, through the dialogue avoids a new block. They affirmed that they are against the blockades and the definitive closure of the mine, since this one supports around 25 communities. They said the mining company has provided a source of work to the people of the communities and do not want it to disappear.

ON EXPLORATION

  • Silver Viper Minerals Corp., mobilized an exploration crew to its Virginia project in Sonora to commence a phase II drilling program at El Rubi target area, where previous drilling carried out in 2018 intersected 3.18 g/t Au and 228 g/t Ag (6.42 g/t AuEq) over 6m of true width. Phase II will test the extension of this structure along trend and at depth on 50m sections with the aim of generating enough information for maiden resource estimation at El Rubi.
  • Oceanus Resources Corporation, presented underground and surface sampling results from the Caleigh, Canon Combination and Protectora Veins at its El Tigre project in Sonora. In the Caleigh Vein, underground channel sample ETU-1007 returned 1,896 g/t Ag and 6.4 g/t Au (2,376 g/t AgEq) over a true width of 0.50m, and ETU-1006 returned 1,971 g/t Ag and 4.64 g/t Au (2,318 g/t AgEq) over a true width of 0.50m. In the Canon Combination Vein, underground channel sample ETU-1012 returned 1,794 g/t Ag and 0.25 g/t Au (1,813 g/t AgEq) over a true width of 0.50m. In the Protectora Vein, underground channel sample returned 378 g/t Ag and 2.01 g/t Au (529 g/t AgEq) over a true width of 0.50m. Surface samples collected on this vein reported 374 g/t Ag and 3.32 g/t Au over 0.7m wide; 192 g/t Ag and 0.57 g/t Au (235 g/t AgEq) over 0.5m wide; and 169 g/t Ag and 1.0 g/t Au (244 g/t AgEq) over 0.50m wide. “The results from the mapping and sampling of the underground workings and at surface present a series of high priority drill targets over a 2 kilometer strike length north of the old El Tigre Mine, which we intend to drill.”
  • Vizsla Resources Corp., reported encouraging underground sampling results from its Panuco-Copala project in Sinaloa. Highlights results from the underground sampling at the San Carlos mine are 5.65 g/t Au and 612 g/t Ag (1,120 g/t AgEq) over  6m on development level 4, including 10.5 g/t Au and 1,120 g/t Ag (1,960 g/t AgEq) over 3m; 2.55 g/t Au and 517 g/t Ag (721 g/t AgEq) over 4.5m on development level 5, including 3.51 g/t Au and 721 g/t Ag (1.002 g/t AgEq) over 3m; and 2.12 g/t Au and 298 g/t Ag (468 g/t AgEq) over 5.5m on development level 4, including 3.76 g/t Au and 591 g/t Ag (892 g/t AgEq) over 1.5m. These results are part of a mapping and sampling program to better understand mineralization at Panuco project.
  • Advance Gold Corp., completed a second phase of a 3D-IP survey and has outlined a N-S trending chargeability anomaly of 1km long by 400-500m wide on its Tabasquena project in Zacatecas. It remains open in both directions as well as at depth. A number of boreholes are now planned to intersect this anomaly.
  • GoGold Resources Inc., released drill results from 4 new holes collared at its Los Ricos project in Jalisco. Three of the 4 holes were drilled at El Troce area and significant intersections were encountered in hole LRGG-19-059 with 0.94 g/t Au and 134 g/t Ag (2.72 g/t AuEq) over 11m, including 1.95 g/t Au and 277 g/t Ag (5.65 g/t AuEq) over 3.5m; and hole LRGG-19-60 with 0.32 g/t Au and 66 g/t Ag (1.19 g/t AuEq) over 16m, including 83 g/t Au and 162 g/t Ag (2.98 g/t AuEq) over 3m. Hole LRGG-19-57 was drilled at the Main area and intersected 0.91 g/t Au and 131 g/t Ag (2.65 g/t AuEq) over 14.1m, including 2.14 g/t Au and 253 g/t Ag (5.50 g/t AuEq) over 5.3m. GoGold completed in Mid-October 2019, a phase 1 drilling program which consisted of 10,000m, and has already started a second phase of drilling, adding a third rig  machine to the program.

ON MINING

  • Alio Gold Inc., continued with processing of low grade stock pile at its san Francisco mine in Sonora, resulting in the placement of 12.8K Oz Au on the pad. The company announced that the low grade stock pile will be exhausted in Q4, 2019, after which crushing will cease, and operations will solely focus on recovery of the residual inventory ounces.
  • Argonaut Gold Inc., presented Q3, 2019 production and financial results from its Mexican operations. The company produced 44.7K Oz AuEq at a cash cost of USD $901 per Oz Au produced and sold 45.6K Oz Au at an AISC of USD $1,134 per Oz Au sold. It also reported revenue for USD $66.8, cash flow from operating activities before changes in operating working capital of USD $17.2M, net income of USD $4.9M, adjusted net income of USD $6.5M, and a net cash increase of USD $11.7M. Argonaut also reported mine by mine production results for the period Q3, 2019. At El Castillo Complex in Durango, it milled 4.8M tonnes of 0.35 g/t Au to produced 30.3K Oz AuEq. At El Castillo, 2.4M tonnes of 0.39 g/t Au were milled to produce 14.3K Oz Au and 23.3K Oz Ag. This mine sold 14.6K Oz Au and 16.3K Oz Ag in this quarterly period, at a cash cost of $1,038 per Oz Au sold. At San Agustin, 2.4M tonnes were milled with a grade of 0.32 g/t Au to produce 15.2K Oz Au and 36.9K Oz Ag. This mine sold 15.7K Oz Au and 15K Oz Ag in this quarterly period, at a cash cost of $848 per Oz Au sold. At La Colorada, Sonora, the company milled 1.45M tonnes of 0.6 g/t Au, to produced 14K Oz Au and 33.6K Oz Ag. La Colorada sold 13.8K Oz Au and 34K Oz Ag at a cash cost of $800 per Oz Au sold.
  • Coeur Mining Inc., announced Q3, 2019 production and financial results from its Palmarejo mine in Chihuahua. It milled 442,464 tons of 2.8 g/t Au and 152 g/t Ag to, with a metallurgical recoveries of 81.7% and 79.6% respectively, to produce 31.8K Oz Au and 1.72M Oz Ag. Adjusted costs applicable to sales were USD $660 per Oz Au and USD $8.95 per Oz Ag. Coeur reported cash flow from operating activities of USD $36.3M and total capital expenditures of USD $7.8M for a total free cash flow of USD $28.5M.
  • Endeavour Silver Corp., reported consolidated Q3, 2019 financial and production results from its four Mexican operations: Guanacevi mine in Durango, Bolañitos and El Cubo in Guanajuato, and El Compas in Zacatecas. The company processed 234, 196 tonnes to produce 948.5K Oz Ag and 9.7K Oz Au (1.72M Oz AgEq), at a cash cost of $11.51 per Oz Ag produced and AISC of $21.53.
  • Excellon Resources Inc., reported Q3, 2019 production and financial results from its Platosa mine in Durango. The company mined 18,167 tonnes and processed 17,235 tonnes with grades of 512 g/t Ag, 4.4% Pb, and 6% Zn, to produce 257.5K Oz Ag, 1.3M Lb Pb, and 1.65M Lb Zn (427.1K Oz AgEq), at a cash cost per Oz Ag payable of $18.18 and AISC net of by-products per Oz Ag payable of $28.46. Metallurgical recoveries were 87.2%, 77.7%, and 76.5% for Ag, Pb, and Zn respectively. Excellon reported revenues for $5.9M, a net loss of $2.9M, and a net working capital of $$9.0M.
  • First Majestic Silver Corp., presented Q3 production results from its Mexican operations. The company reported revenues for $97M, a net loss of $8.6M, operating cash flow before movements in working capital and taxes of $34.6M, cash and cash equivalent of $118.6M, and a working capital of $149.2M. The below table shows the mine by mine production results:

  • Hecla Mining Company, announced Q3 production and financial results from its San Sebastian mine in Durango. It produced 541.6K Oz Ag and 3.7K Oz Au at an AISC of $$7.21 per Oz Ag.
  • Leagold Mining Corporation, produced from its Los Filos mine in Guerrero, 40,922 Oz Au at an AISC of $1,001 per Oz Au produced, and sold 41,343 Oz Au during Q3, 2019, with associated revenue of $58.6M.
  • Pan America Silver Corp., reported Q3, 2019 production and financial results from its la Colorada, Zacatecas and Dolores, Chihuahua mines. At La Colorada, the company produced 2.1M Oz Ag and 1,200 Oz Au, at a cash cost of $2.82 per Oz Ag and an AISC of $4.03 per Oz Ag. At Dolores, it produced 1.5M Oz Ag and 33.1K Oz Au, at an AISC of $7.45 per Oz.

ON FINANCING

  • Discovery Metals Corp., closed a non-brokered private placement for gross proceeds of $19M, including $5M investment from Eric Sprott, which represents 19.9% of the interest of Discovery on a non-diluted basis. Proceeds will be used to continue the exploration programs at its exploration properties (Cordero project, Chihuahua, Puerto Rico project, Coahuila).
  • Goldplay Exploration Ltd., closed a brokered private placement financing of $3M. Gross proceeds will be used to continue resource expansion drilling including underground and surface exploration on its san Marcial project in Sinaloa.
  • Solaris Copper Inc., announced its intention to undertake a non-brokered private placement to raise gross proceeds of up to CAD $5.5M. Gross proceeds will be used to advance permitting, exploration, and drilling activities at their projects. (La Verde project, Michoacan).
  • Advance Gold Corp., closed the first tranche of a non-brokered private placement for gross proceeds of $113K. The company will use the gross proceeds to advance its Tabasqueña project in Zacatecas.
  • Orex Minerals Inc., announced its intention to undertake a non-brokered private placement to raise gross proceeds of up to $1M. Orex will use the net proceeds to maintain its 40% share of the Sandra Escobar project in Durango and fund its 40% share of the upcoming work program, and to make the necessary payments under its option to acquire 100% of the San Luis del Cordero project, Durango, and for general corporate and capital purposes.
  • San Marco Resources Inc., revised its previously announced non-brokered private placement and now intends to rise gross proceeds for up to CAD $376.6K. It also closed subscription books for unit and flow through shares private placement for gross proceeds of CAD $40K (Chunibas project, Sonora).

ON RESOURCES AND DEVELOPMENT

  •  Capstone Mining Corp., announced high grade Cu-Ag results from 103 infill and step-out drill holes from 200 hole program at its Cozamin mine in Zacatecas. Aim of this program is more than double the current reserve base. Significant drill intersection were encountered in hole CG-19-U498 with 5.02% Cu, 0.4% Zn, and 72 g/t Ag over a true width of 12.3m, including 9.02% Cu, 0.7% Zn, and 127 g/t Ag; in hole CG-18-S381 with 7.27% Cu, 0.3% Zn, and 220 g/t Ag over a true width of 5.1m; in hole CG-18-S372 with 5.53% Cu, 0.2% Zn, and 117 g/t Ag over a true width of 20.1m, including 11.32% Cu, 0.3% Zn, and 242 g/t Ag over a true width of 6.4m.
  • Torex Gold Resources Inc., reported drilling results from its 2019 exploration program at its El Limon-Guajes complex deposit in Guerrero. The drilling program has been successful in extending mineralization 150m below current reserves at its El Limon Deep deposit. Significant mineralization was encountered in hole LDUG-039 with 15.6 g/t Au over 38m; in hole LDUG-049 with 20.9 g/t Au over 12m, and in hole LDUG-056 with 15.7 g/t Au over 16.8m. El Limon Deep deposit remains open down dip and along strike.
  • Mexus Gold US, announced that its Merrill Crowe Au recovery plant at its Santa Elena mine in Sonora is complete and operational. “The plant is capable of handling Mexus’3000 ton a week mining operation and will allow for future expansion as well”.
  • Mag Silver Corp., informed about the activities carried out at its Juanicipio project mine development in Zacatecas during Q3, 2019. The company reported that “earthmoving and foundation preparation commenced for the construction of the 4,000 tpd beneficiation plant. Mill fabrication is progressing on schedule, and both the SAG and ball mills are expected to be shipped to site early 2020. Flotation cells, processing tanks and minor process equipment pieces are starting to arrive on site. Thickener tanks and drive and rakes fabrication are well advanced. Underground development has now reached 23Km of development and continues. According to the operator, Fresnillo plc, permitting for the tailings impoundments should be completed in the fourth quarter of this year and mill construction is on track for commissioning by late 2020”.

 ON DEALS AND CORPORATE ISSUES

  • Colibri Resources Corporation, received TSX approval for its acquisition of Yaque Minerals by a CAD$ 1M payment by way of a 5-years convertible debenture bearing 2.5% annual interest and carries a $0.20 per share conversion privilege. The Yaque´s acquisition includes two projects in Sonora: El Mezquite and Jackie, located less than 10Km east of the Nicho deposit owned by Minera Alamos, which is expected to start production in 2020, with initial production of 25K-30K Oz Au per year, with a mine life of more than 6 years. El Mezquite is a 2km by 1km N-S trending hydrothermal alteration zone on silicified feldspar porphyry, with a potential Au target area of at least 600m by 300m. A 3D-IP survey was carried out on this anomalous area which resulted in the identification of chargeability and resistivity anomalies underlying the surface area of potential. 321 grab samples have been collected of which 13% returned Au values oscillating from 0.1 to 3.41 g/t Au. Jackie is located 2km south of the El Mezquite but it has seen very little exploration work to date. Some prospecting work is planned for 2020.
  • Vizsla Resources Corp., closed its previously announced option agreement on November 5, to acquire 100% interest in Panuco-Copala property in Sinaloa. Vizsla confirmed that it has previously loaned USD $700K to Canam in order to satisfy the initial payment due under the terms of the options.
  • Great Panther Mines Limited, announced the appointment of its VP Exploration and VP People & Culture (Topia mine, Durango).
  • Solaris Copper Inc., announced management changes of its team, appointed its CEO, CFO, VP Corporate Affairs and Corporate Secretary, and a new member to its Board of Directors (La Verde project, Michoacan).
  • Starcore International Mines Ltd., reported results from its annual general meeting of shareholders (San Martin mine, Queretaro).
  • Mako Mining Corp., provided a corporate update and status of its Mexican operation. At its la Trinidad mine in Sinaloa, Au production is nearing conclusion, with Au sales being used to fund ongoing reclamation and severance costs. Mining and process plant equipment has been moved to USA and the lab equipment will be moved to Nicaragua soon. Mako has reported that has not been successful in receiving any insurance for damages caused by Hurricane Willa at its Trinidad mine in October, 2018. It has filed a lawsuit for over USD $7M against the Insurance Company. Mako also announced that it has reached an agreement with the primary mining contractor on the debt of approximately USD $11.3M. “Despite being ring-fenced from the rest of Mako’s corporate structure, the Company chose to settle with the contractor by making a USD $4M upfront payment and agreeing to make two additional USD $1M payments 12 months and 24 months from signing of the settlement agreement.  As this liability was being accounted for at approximately USD$11.3M, a substantial accounting gain is expected in the next quarterly report.
  • Compañía Minera Cuzcatlán , a subsidiary of Fortuna Silver Mines, analyzes to invest in a new mining plant located 40km from its San Jose mine, Oaxaca. The company asked government support to mediate between the company and the communities, since the new plant will require between USD $200-300M. The decision has to be taken next year, so they need the support of the authorities to reach a social agreement with the communities.
  • Compañía Minera Autlán, A.B .de C.V., announced its intention to raise its commitment to gold. The intention of that business and the integration towards gold was always to reach 20 to 25% of the top line and about 30 to 35% of the operating cash flow (EBITDA). In addition, the company estimates they will close this year with and investment of USD $35M to support other areas of its business, to add USD $45 M in an integrated way (Lluvia de Oro-La Jojoba, Sonora).

ON SOCIAL RESPONSIBILITY

  • Agnico Eagle Mines Limited, participated, along with the municipal presidency of Yepachi, Chihuahua, in the reconstruction of the drinking water system for this community. Yepachi is the second largest community in this area and has years of lag in terms of the supply and quality of drinking water. A total of MXP $4M will be invested, an amount that will be contributed by 50% by the municipal presidency and the other part will be borne by Agnico Eagle, which operates within the territory of the Yepachi Ejido.
  • Argonaut Gold Inc., has participated in several programs with the communities where the company operates. At La Colorada, Sonora, Argonaut signed a health collaborative agreement with the Centro de Rehabilitación Integral Teletón and hosted a cultural event with the Cultural Institute of Sonora. In Durango, participated in collaboration with the local government in an interactive learning pavilion where local attendees and families could know about the company´s mining activities and projects. It also sponsored an international forum on geological and mining heritage organized by the Universidad Autónoma de Baja California Sur, to discuss possible historical tourism and ecotourism in mining communities. Finally, Argonaut hosted students’ interactive workshops in the municipality of Dolores, Hidalgo in the village of san Anton in Guanajuato, Mexico, and hosted a soprano singer and the Latin American quartet at the Mining Cultural Centre of the Mexican chamber of commerce in Mexico City.

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 Mn oxides-calcite fault vein-bx structure from a prospect in Chihuahua, Mexico.  Photo by Miguel A Heredia.

The Mining and Exploration News in Mexico: Highlights on the Fifth Week of October, 2019

IMG_0970 - copia

By Jorge Cirett

During the 44th week of the year (October 28th to November 3rd, 2019), at least 33 press releases were forwarde by companies working in Mexico. ON MEXICO ISSUES, The Morena party reassigned the Mining Fund, taking it away from its intended purpose of helping and developing mining communities. All big organizations related to mining in Mexico presented a petition to the president to rebuke the channelling of the Mining Fund away from its intended goal of helping mining communities. The governors of Sonora, Durango, Zacatecas and Guerrero sent a letter to the president of Mexico asking not to affect the communities by withdrawing the Mining Fund. On other matters, the AIMMGM informed mining companies expect to invest more than US$26 billion in six years. The illegal blockade on the Peñasquito mine in Zacatecas was lifted, with negotiations to continue shortly. The El Castillo mine access in Durango was illegally blocked for a few days, and then released, while negotiations proceed with community involved. ON EXPLORATION, in Sonora, Magna Gold informed it has two projects in the state, Mercedes near Yecora and San Judas, near Trincheras. In Chihuahua, Wealth Minerals negotiated surface access to its Valsequillo project. In Durango, Gainey Capital halted drilling activities while discussions with the local indigenous groups proceed.  ON MINING, Gold Resource, Consolidated Zinc, McEwen Mining, Santacruz Silver, Premier Gold, Torex Gold, Americas Silver and sierra Metals released third quarter 2019 production results. Telson Mining is to re-commence mining at Campo Morado in Guerrero. ON FINANCING, Goldplay Exploration filed an amended and restated condensed interim consolidated financial statement. Oroco Resource informed the exercising of warrants for $720 K. Starcore Interantional has resumed trading on the OTC Pink market. ON RESOURCES AND DEVELOPMENT, Pan American Silver released impressive results from 14,300 m of drilling at its La Colorada mine in Zacatecas. Mexican Gold Corp updated on its current drilling program at Las Minas, Veracruz. ON DEALS AND CORPORATE ISSUES, Telson Mining is to re-start mining at Campo Morado, in Guerrero, under a notice of default and demand for payment by Nyrstar. Prime Mining signed a public relations contract with Brisco Capital Partners. Oceanus is using now a service for virtual tours on remote locations. Santacruz and Peñoles extended a lease agreement on the Zimapan mine in Hidalgo. Almaden Minerals was informed by SEMARNAT that the permitting process for its Ixtaca mine in Puebla is suspended until a judicial resolution is reached (the head of the institution is openly against open pit mining).  ON SOCIAL RESPONSIBILITY. Alamos Gold reunited all the students under its scholarship program in three venues, Matarachi, Sahuaripa and Hermosillo.

ON MEXICO ISSUES

  • Last week the Morena party majority reassigned the Mining Fund (Fondo para el Desarrollo Regional Sustentable de Estados y Municipios Mineros) to education spending.  The fund is gathered on a 7% (increased to 7.5% in gold and silver) royalties on extracted minerals implemented in 2014 to aid with the infrastructure, health, education and sustainability of mining communities.
  • The Asociación de Ingenieros de Minas, Metalurgistas y Geólogos de México (AIMMGM) informed that mining companies expect to invest more than US$26 billion in six years. If such investments come to be realized, 50 thousand direct jobs and 274 thousand indirect jobs could be generated, and mining companies would pay an additional 23,500 million in taxes. Just last year the industry paid 46,159 million pesos on income tax (Impuesto sobre la renta, ISR).
  • On October 26th, the Zacatecas governor Alejandro Tello informed that security forces are inviting the group that (illegally) blocks the entrance to the Peñasquito mine to leave the site. The governor also informed that a number of the blockers might be pursued judicially, some by the state and some by the federal government. He stated that he’s is been in contact with the sub secretary of the interior (Subsecretario de Gobernación), with whom also the company executives, communal farmers (ejidatarios) and the state government have been in dialogue rounds.
  • The Cámara Minera de México (CAMIMEX), the Grupo de Minería de la Cámara de Comercio de Canadá, the Asociación de Ingenieros de Minas, Metalurgistas y Geológos de México, the organization in mining Mujeres WIM de México and the Colegio de Ingenieros de Minas, Metalurgistas y Geólogos de México received with great worry de Senate decision to approve an unjust redistribution of the Mining Fund (Fondo Minero), braking the spirit on which the fund was created to benefit mining communities. The priority for the sector is that the resources reach the communities and municipalities where they were generated, contributing with independent actions by mining companies to the social welfare and community development in areas away from urban centers, aiding to reach greater life quality, development and wellbeing. Miners are appalled by the Congress decision, same that dismissed petitions by state governors, municipality presidents, from the industry and mining communities to guarantee the return of funds to these localities. A strong and respectful call is made to the authorities to reconsider the distribution methodology for the resources and operational rules of the fund, where it should be clearly established that these funds are to be funnelled exclusively to mining communities, municipalities and states. The mining industry refresh its compromise to continue to be an agent of change, a block that forwards sustainability practices and is and active player that contributes to a greater well-being for thousands of miner families and millions of Mexicans. We consider ourselves as the best federal government ally to achieve the more valuable social objectives sought by new government project. The Camara Minera de Mexico is the first camera of industries formed in the country, representing the interests of the mining-metallurgical industry in the country.
  • Argonaut Gold Inc. informed on an illegal blockade at its El Castillo mine in Durango. The Company has a legal and binding agreement in place with Atotonilco ejido that was signed and recognized by both the Atotonilco ejido and the Mexican government in 2012 and runs through 2022. The blockade lifting was announced on October 30, with an agreement with the ejido pending to be ratified on November 11.
  • Newmont Goldcorp confirmed that free access to its Peñasquito installations in  Zacatecas is complete as of last Sunday (Oct. 27). Access to the mine had been blocked by a small group of communal agriculture workers (ejidatarios) and truckdrivers. The company is to restart the social investment programmes in the next few days, and expects to initiate on November 19 the new program “Juntos Dejamos Legado”, which aims to support schools and sport activities in 25 nearby communities. The ending of the blockade was achieved with government executives having dialog with the blockers, with the presence of the national guard (Guardia Nacional) and the state police (Policía Estatal Preventiva), stressing that further negotiations were to proceed only without the blockade in place.
  • The governors of Sonora, Claudia Pavlovich; Zacatecas, Alejandro Tello; Durango, José Rosas, and Guerrero, Héctor Astudillo, sent a letter to the president of México asking not to affect the communities by withdrawing the mining fund.

ON EXPLORATION

  • Gainey Capital Corp. temporarily halted all drilling activities at its Las Margaritas property in Durango, following discussions with the local indigenous groups (Las Margaritas, Durango).
  • Magna Gold Corp. informed it has two projects in Sonora. The flagship 1,239 ha Mercedes project in Yecora, and the recently acquired San Judas project in Trincheras.
  • Wealth Minerals Ltd. successfully negotiated surface access rights to its Valsequillo property in Chihuahua. The company has an option to acquire 100% interest in the 2,840 ha property. Past artisanal mining activity concentrated on a number of epithermal, Zn-Pb-Cu-Ag veins, stockworks and silicified zones concentrated within two NW trending corridors. Rock sample results of up to 2.68 gpt Au, 629 gpt Ag, 9.5% Cu, 16.5% Pb, 6.4% Zn have been obtained.

ON MINING

  • Telson Mining Corp. announced the recommence of mining operations at its Campo Morado mine in Guerrero. This is the result of improved relations with the local community and a better zinc price. The company anticipates initiating full mining activities and processing operations near the beginning of December 2019.
  • Argonaut Gold Inc. informed on an illegal blockade at its El Castillo mine in Durango. The Company has a legal and binding agreement in place with Atotonilco ejido that was signed and recognized by both the Atotonilco ejido and the Mexican government in 2012 and runs through 2022.
  • Gold Resource Corp. reported gold production for the third quarter of 2019, including figures from its Oaxaca Mining Unit. The Arista mine milled 163.3 K tonnes @ 1.76 gpt Au, 85 gpt Ag, 0.39% Cu, 1.9% Pb, 4.7% Zn; the Aguila open pit mine milled 3.6 K tonnes @ 1.49 gpt Au, 58 gpt Ag; the Mirador mine milled 11.7 K tonnes @ 0.76 gpt Au, 197 gpt Ag. In total, 178.6 K tonnes were milled at a rate of 2,007 tonnes per day, to produce 7,462 Oz Au, 473.8 K Oz Ag, 492 tonnes Cu, 2,459 tonnes Pb, 6,057 tonnes Zn. Total cash cost after by-product credits was $197 per AuEq ounce and total all-in sustaining cost was $520 per AuEq ounce for the period.
  • Consolidated Zinc Ltd. released its third quarter 2019 activities report. The acquisition of the Plomosas mine in Chihuahua was completed, getting the remaining 10% ownership in exchange for a 1% NSR royalty. During the quarter 7,511 tonnes were mined @ 13.5% Zn, 8.2% Pb, and 9,120 tonnes were processed @ 12.5% Zn, 7.9% Pb.
  • McEwen Mining Inc. presented its third quarter 2019 report, including activities at its El Gallo mine in Mexico. During the third quarter the mine produced 3,057 Oz AuEq from residual leaching, at cash cost $1,153 and $1,177 AISC per Oz AuEq. Work on the Fenix Project feasibility study and permitting is progressing.
  • Pan American Silver Corp. released results from 14,300 m of drilling during the third quarter 2019 on its La Colorada mine in Zacatecas (see Resources and Development section) .
  • Santacruz Silver Mining Ltd. reported its third quarter 2019 production. Consolidated production was 956.5 K Oz AgEq. At Zimapan, in Hidalgo, 82.2 K tonnes were processed @ 75 gpt Ag, 0.59% Pb, 2.28% Zn, 0.48% Cu to produce 151.5 K Oz Ag (75% recovery), 463 tonnes Pb, 1,492 tonnes Zn, 316 tonnes Cu. At Veta Grande, in Zacatecas, 44 K tonnes were processed @ 99 gpt Ag, 0.24 gpt Au, 1.45% Pb, 2.11% Zn to produce 62.4 K Oz Ag (45% recovery), 139 Oz Au, 370 tonnes Pb, 519 tonnes Zn. At Rosario, in San Luis Potosi, 22 K tonnes were processed @ 65 gpt Ag, 0.25 gpt Au, 0.40% Pb, 2.04% Zn to produce 43 K Oz Ag (93% recovery).
  • Premier Gold Mines Ltd. announced Q3 2019 production results, including 14,481 Oz Au and 37.5 K Oz Ag from its Mexican operations at Mercedes, in Sonora.
  • Torex Gold Resources Inc. reported third quarter 2019 results. At its El Limon-Guajes mine in Guerrero, the company produced 138,145 Oz Au, mine production averaged 144,989 tonnes per day (tpd), mine ore production averaged 15,391 tpd @ 3.19 gpt Au, with a plant throughput of 12,380 tpd @ 4.11 gpt Au, recovering 89% Au at cash cost $561 and AISC of $675.
  • Americas Gold and Silver Corp. released third quarter 2019 production results, including figures from its Cosalá operations in Sinaloa. At the site 151.2 K tonnes were milled to produce 128.8 K Oz Ag, 10.1 M Lb Zn, 3.7 M Lb Pb (or 1 M Oz AgEq), at cash cost -$10.82 per Oz Ag, and an AISC of -$1.49 per Oz Ag after sub-product credits.
  • Sierra Metals Inc. reported its Q3-2019 financial results, not including figures from its operations in Mexico. The company had $29.0 M of cash and cash equivalents at the end of the period (Bolivar, Chihuahua).

ON FINANCING

  • Goldplay Exploration Ltd. filed an amended and restated condensed interim consolidated financial statement and management discussion and analysis for the six months ended June 30, 2019, adding the following disclosure “in Note 11 – Related Party Transactions; The Company issued 480,000 common shares valued at $60,000 as debt settlement with officers and a director of the Company and in Note 12 – Share Capital and Reserves; the Company issued 600,000 common shares valued at $75,000 as debt settlement including $60,000 to related parties” (San Marcial, Sinaloa).
  • Oroco Resource Corp. informed that warrant holders from a unit offering completed on April 2018 have fully exercised the purchase warrants providing the company $720 K (Santo Tomás, Sinaloa).
  • Starcore International Mines Ltd. announced it has resumed trading on the OTC Pink markets in USA under the symbol “SHVLF” (San Martin, Queretaro).

ON RESOURCES AND DEVELOPMENT

  • Pan American Silver Corp. released results (impressive) from 14,300 m of drilling during the third quarter on the La Colorada skarn discovery in Zacatecas. Drill highlights comprise 250.9 m @ 40 gpt Ag, 0.08% Cu, 2.6% Pb, 3.4% Zn (including 78.9 m @ 60 gpt Ag, 0.09% Cu, 3.9% Pb, 4.8% Zn); 72.3 m @ 37 gpt Ag, 0.16% Cu, 3.8% Pb, 6.3% Zn and 56.6 m @ 39 gpt Ag, 0.10% Cu, 3.3% Pb, 6.6% Zn; 124.8 m @ 42 gpt Ag, 0.08% Cu, 2.4% Pb, 3.1% Zn; 252.9 m @ 67 gpt Ag, 0.19% Cu, 3.8% Pb, 6.6% Zn (including 27.3 m @ 108 gpt Ag, 0.20% Cu, 8.1% Pb, 13.7% Zn and 148.6 m @ 81 gpt Ag, 0.23% Cu, 4.4% Pb, 7.7% Zn); 132.5 m @ 56 gpt Ag, 0.19% Cu, 3.8% Pb, 6.3% Zn and 139.2 m @ 54 gpt Ag, 0.15% Cu, 1.8% Pb, 5.9% Zn; 379.0 m @ 54 gpt Ag, 0.50% Cu, 2.0% Pb, 3.7% Zn (including 66.7 m @ 154 gpt Ag, 2.07% Cu, 1.0% Pb, 1.6% Zn).
  • Mexican Gold Corp. updated on its current drill program at its Las Minas project in Veracruz. To date 655 m have been drilled on five holes, with three holes testing El Dorado zone, another 261 m hole tested an electromagnetic anomaly, while the hole currently being drilled is also testing a 350 m extension of the same anomaly.

ON DEALS AND CORPORATE ISSUES

  • Telson Mining Corp. informed that as a result of suspending operations at Campo Morado in August 2019 under force majeur conditions, Telson has been without cash flows resulting in non-payment under the loan agreement with Nyrstar Holdings Ltd. This has resulted in Nyrstar issuing a notice of default and demand for payment. Telson’s outstanding debt under this loan agreement including principal and interest is approximately US$6 M. Telson expects to be able to recommence outstanding payments to Nyrstar while exploring other financing alternatives.
  • Prime Mining Corp. entered into contractual agreements for marketing, advertising, shareholder engagement and social media communications with Brisco Capital Partners Corp. for a monthly retainer for a minimum of a CDN$10 K and a maximum of CDN$50 K (Guadalupe de Los Reyes, Sinaloa).
  • Oceanus Resources Corp. announced that is now live on VRIFY, a platform being used by companies to communicate with investors using virtual tours of remote mining assets, 3D models and interactive presentations (El Tigre, Sonora).
  • Santacruz Silver Mining Ltd. and Peñoles, each by mean of a subsidiary, extended the Zimapan mine lease agreement from December 31,2019 to December 31, 2020. Santacruz must make monthly payments to Peñoles based on a 4% NSR, subject to a minimum US$45 K and a maximum of US$60 K per month. The extension provides more time for the negotiation of terms of a potential acquisition of the Zimapan mine in Hidalgo.
  • Almaden Minerals Ltd. was notified by SEMARNAT (Mexico’s environmental authority) that the permitting process for the Ixtaca project in Puebla has been suspended pending resolution of a mineral title lawsuit previously reported. “Under the Lawsuit, certain organisations have supported legal challenges against the Government of Mexico and the Mexican mineral title regime using the Company’s mineral claims as a basis for their challenges. The Lawsuit contends that the issuance of Almaden’s original mineral titles violated human rights and did not respect Mexico’s commitment to indigenous consultation under United Nations Instrument ILO 169…… o. In April, 2019, a Lower Court in Puebla State ruled that the Mexican mineral title system is unconstitutional and as a result these original mineral claims should be held exclusively for Almaden until such time as consultation can be completed. This Lower Court decision has now been appealed by the Mexican Congress, Senate, Secretary of Economy and Mining authorities, as well as Almaden as an affected party. The Lawsuit remains before the Courts”. SEMARNAT was informed on October 24 that the company completed the necessary steps to abandon its mineral claims in the area of the complaint in 2017.
  • Bacanora Lithium is using Veolia Water Technologies Division with its HPD evaporation and crystallisation technologies to validate Bacanora Lithium’s product purity requirements at the Sonor lithium project, while removing potassium and converting it into a sub-product. Veolia engineered and designed the production process that recovers lithium carbonate and sulphate of potash from clay deposits.

ON SOCIAL RESPONSIBILITY

  • Minas de Oro Nacional (Alamos Gold) reunited in Matarachi, Sahuaripa and Hermosillo (Sonora) all the 185 students currently receiving scholarships to study in Matarachi, Sahuaripa, Arivechi, Chihuahua, Cuahutémoc and San Luis Rio Colorado. The ceremony in Hermosillo was held with company and state executives, including the state governor, the Mining Director, the director of DIF, the director of the Sonora Mining Cluster, the director of the Miners Association of Sonora and the SEC sub-secretary of Basic Education.

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: Gneiss hosted quartz veinlet from a project in Oaxaca. Picture by Jorge Cirett.

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The Mining and Exploration News in Mexico: Highlights on the Third Week of October, 2019

IMG_2620 - copia

By Jorge Cirett

During the 42nd week of the year (October 14th to October 20th, 2019), at least 29 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, The Congress dominated by Morena approved a bill dramatically changing the rules od operation of the Mining Fund for 2020 . ON EXPLORATION, in Sonora, Magna Gold released drilling results for its Mercedes project, and announced new exploration targets. In Sinaloa, Oroco Resource commenced work at the Santo Tomas project. In Durango, Gainey Capital commenced drilling at Las Margaritas. In Veracruz, Azucar Minerals discovered another mineralized center at El Cobre.  ON MINING, Sierra Metals, Fortuna Silver, Avino Silver, Gold Resource and McEwen Mining released third quarter 2019 production results. Argonaut Gold reported an accident that resulted in the death of two contractor’s employees at La Colorada, in Sonora. ON FINANCING, Kootenay Silver closed a $2 M private placement. Gainey Capital granted options to directors, officers, employees and consultants. Candelaria Mining discontinued a private placement due to unfavorable market conditions. ON RESOURCES AND DEVELOPMENT, SilverCrest Metals reported development mining sampling has returned less tonnage but more AgEq ounces at its Las Chispas property in Sonora. Azure minerals is planning a two-stage drill program at the Loma Bonita gold target of its Alacran property in Sonora. ON DEALS AND CORPORATE ISSUES, Tamino Minerals elaborated on the company’s history and incoming work at its El Volcan project in Sonora. Bacanora Lithium presented the current situation of Ganfeng’s investment on the company. Megastar Development entered into an option agreement regarding the Cerro Minas concession in Oaxaca. Riverside Resources released information on its BHP financing agreement for generative copper exploration in NW Sonora. Golden Minerals entered into an option agreement with Magellan Gold to sell its interest in the Santa Maria project in Chihuahua. ON SOCIAL RESPONSIBILITY. The Grupo Mexico Foundation donates 175 K trees in Queretaro. Ternium granted scholarships to 145 students. Esperanza Silver presented a sustainable project in Morelos.

ON MEXICO ISSUES

  • The Camara de Diputados (Deputies Chamber, or Congress) approved legal reforms concerning the use of the Mining Fund. The changes were approved only by the Morena party and allied members, taking away the planning and overseeing of funds (generated by a special tax on mining) from local mining municipalities, enforcing what is seen as federal discretional use.

ON EXPLORATION

  • Gainey Capital Corp. commenced a diamond drilling campaign at the Las Margaritas project in Durango. This initial phase comprises 1,080 m of drilling in 11 holes focused on the best mineralization exposed at the surface, where sampling has returned up to 73.7 gpt Au.
  • Azucar Minerals Ltd. Announced the discovery of another mineralized center at its El Cobre project in Veracruz. Two holes tested the El Primo target area, defined by a gold, copper and molybdenum soil anomaly. Relevant intervals comprise 5.25 m @ 0.60 gpt Au, 0.26% Cu and 8.45 m @ 0.20 gpt Au, 0.29% Cu in one hole and 200 m @ 0.40 gpt Au, 0.24% Cu in another hole, including 86.50 m @ 0.70 gpt Au, 0.42% Cu; which includes 55.60 m @ 0.94 gpt Au, 0.56% Cu; which includes 10 m @ 1.44 gpt Au, 0.85% Cu. This target is at least a kilometer away from other already identified mineralized centers within the property.
  • Oroco Resource Corp. commenced technical field work, initial environmental baseline studies and permitting at its Santo Tomas project in Sinaloa. This work is to be followed by a 3D induced polarization geophysical survey and the first phase of confirmation diamond drilling. The company holds an option to acquire a 56.7% interest in the 1,173 ha core concessions of the project, and might increase that interest up to an 81.0% interest with a project investment of up to CAD$30 M. Oroco also holds a 77.5% interest in 7,808 ha surrounding and adjacent to the core concessions.

ON MINING

  • Argonaut Gold Inc. informed on an accident involving a contractor that resulted in death by electrocution of two individuals while performing maintenance work on a haul truck at La Colorada mine in Sonora. Operations were suspended on October 11 and resumed on October 12, 2019.
  • Sierra Metals Inc. reported third quarter 2019 production, including figures from its Mexican operations. At Bolivar in Chihuahua, 331.8 K tonnes were processed at a 3,792 tonnes per day rate (tpd) @ 0.86% Cu, 20.5 gpt Ag, 0.31 gpt Au, recovering 81.3% Cu, 79.0% Ag, 62.3% Au to produce 5.115 M Lb Cu, 173 K Oz Ag, 2,173 Oz Au. At Cusi, also in Chihuahua, 70.4 K tonnes were processed at an 805 tpd rate @ 141.5 gpt Ag, 0.15 gpt Au, 0.14% Pb, recovering 84.6% Ag, 39.6% Au, 78.3% Pb to produce 271 K Oz Ag, 135 Oz Au, 168 K Lb Pb.
  • Fortuna Silver Mines Inc. disclosed production results for the third quarter 2019, including figures from its Mexico operations. At San Jose in Oaxaca, 268 K tonnes were milled @ 219 gpt Ag, 1.40 gpt Au, recovering 82.4% Ag, 90.6% Au, to produce 1.71 M Oz Ag, 10,942 Oz Au, at a cash cost per ton of US$70.80.
  • Avino Silver & Gold Mines Ltd. released third quarter 2019 production results from its Avino property in Durango. Consolidated figures comprise 202.7 K tonnes processed @ 44 gpt Ag, 0.33 gpt Au, 0.33% Cu, recovering 76% Ag, 67% Au, 68% Cu to produce 221.9 K Oz Ag, 1,448 Oz Au, 1.38 M Lb Cu. At the Avino mine 122.2 K tonnes were processed @ 41 gpt Ag, 0.31 gpt Au, 0.58% Cu to produce 139.4 K Oz Ag, 900 Oz Au, 1.3 M Lb Cu; 17.8 K tonnes were processed from the San Gonzalo mine stockpiles (the mine is now closed) @ 56 gpt Ag, 0.41 gpt Au to produce 29.6 K Oz Ag, 194 Oz Au; From historic above ground stockpiles 62.6 K tonnes were processed @ 47 gpt Ag, 0.33 gpt Au, 0.33% Cu to produce 232.1 K OZ Ag, 1,528 Oz Au, 311 K Lb Cu.
  • Gold Resource Corp. reported preliminary production for the third quarter 2019, including figures from its operations in Mexico. At the company’s Oaxaca Mining Unit, a total of 7,462 Oz Au, 473.8 K Oz Ag, 492 tonnes of copper, 2,459 tonnes of lead and 6,057 tonnes of zinc were produced.
  • McEwen Mining Inc. released production details for the third quarter 2019, including figures from its Mexican operations. At its El Gallo property in Sinaloa, 3,018 Oz Au were produced by residual leaching of the heap leach pad.

ON FINANCING

  • Kootenay Silver Inc. closed its non-brokered private placement of $2 M that was fully subscribed by Ninepoint Silver Equities Class with Sprott Asset Management LP acting as sub-advisor. (Columba, Chihuahua).
  • Candelaria Mining Corp. announced that a private placement previously announced has been discontinued due to unfavorable market conditions. The company intends to conduct an offering on a non-brokered private placement basis for aggregate gross proceeds of up to $700 K. Closing of the new private placement is expected to be on November 30, 2019 (Caballo Blanco, Veracruz).
  • Gainey Capital Corp. granted 1.5 M incentive stock options to its directors, officers employees and consultants (Las Margaritas, Durango).

ON RESOURCES AND DEVELOPMENT

  • SilverCrest Metals Inc. informed development work has intersected better grades than those in the resources estimate for the Babicanora vein at its Las Chispas property in Sonora. Underground mining along 180 m of the Babicanora vein (20% of the mineralized length on area 51) reported 33% less tonnes, but 65.7% more AgEq ounces for the interval. In total 4,170 tonnes were extracted @ 15.18 gpt Au and 1,071 gpt Ag (2,209 gpt AgEq), while the resource estimate in this zone graded 4.48 gpt Au and 556 gpt Ag (892 gpt AgEq). Underground sampling returned up to 2.8 m @ 94.52 gpt Au, 8,320 gpt Ag (15,409 gpt AgEq). SilverCrest plans to have a stockpile of 25-30 K tonnes of high-grade material containing 800 K to 1 M Oz AgEq, extracted by development work to the end of 2019.
  • Azure Minerals Ltd. is planning a two-stage drill program on resource expansion at Loma Bonita, within the Alacrán project in Sonora. High-grade intersections on the resource boundary, like 47 m @ 2.8 gpt Au, 33 gpt Ag and 67 m @ 1.6 gpt Au, 21 gpt Ag (both from surface) favor the continuity of the ore body. First pass sampling of historical workings south of Cerro Alacrán returned up to 3,675 gpt Ag, 21.1 gpt Au, 2.3% Cu, 33.5% Pb, 21.0% Zn. Applications for environmental approval have been submitted.

ON DEALS AND CORPORATE ISSUES

  • Tamino Minerals Inc. elaborated into the long and convolute company history and financing (El Volcan, Sonora).
  • Bacanora Lithium PLC. Announced the completion of the “Invested Agreement and Offtake Agreement” which together make the “Strategic Investment” of Ganfeng Lithium Co.. The relevant approvals have been completed and Bacanora has now received £21.96 M of funds from Ganfeng, for a 29.99% equity interest in Bacanora Lithium PLC and a 22.5% JV investment directly in the Sonora Lithium Project. The vice-president of Wangfeng was appointed a director of Bacanora. “The Bacanora project team in Mexico continues to progress the final design work for the mine, concentrator and kiln sections of the processing plant. The Ganfeng technical team has initiated work on the hydrometallurgical circuit…”
  • Tamino Minerals Inc. informed it is going to present a NI 43-101 report on its El Volcan property in Sonora once a registration statement is filed to the SEC and the company becomes fully reporting.
  • Megastar Development Corp. has entered into an option agreement with Gunpoint Exploration Ltd. to acquire 100% interest in the 899 ha Cerro Minas mining concession (title (234333) in Oaxaca. The agreement entails the payment of US$10 K and 100 K Megastar shares on the effective date, US$20 K and 150 K shares on the first anniversary, US$30 K and 250 shares on the second anniversary and US$40 K and 300 K shares on the third anniversary, with Gunpoint retaining a 1.5% NSR royalty, of which 0.5% can be bought by US$1.0 M.
  • Riverside Resources Inc. informed that the first two to three quarters of the exploration financing agreement with BHP for generative copper exploration in NW Sonora will be centered on regional prospect generation. The program envisages a minimum two-year US$2 M budget, and upon advancing projects to the operation phase (Phase II), BHP has the option to fund up to US$5 M for drilling and other exploration expenditures. Riverside is to receive US$200 K by project that makes it to the second phase.
  • Golden Minerals Co. entered into an option agreement with Magellan Gold Corp. to sell its rights to acquire a 100% interest in the Santa Maria project, in Chihuahua. Magellan has a 150 days due diligence period to decide whether to execute the option, on which it has to pay $1 M cash, with Golden Minerals retaining a 6.5% royalty until a total of $3 M has been paid as royalty, with Golden retaining a 3% NSR royalty for the life of the mine. If Magellan fails to get the mine to production within one year from closing the deal, Golden will get back the property.

ON SOCIAL RESPONSIBILITY

  • The Grupo Mexico Foundation donates 175 plants and trees in Queretaro. Grupo Mexico is aiding to reach the goal of planting 250 thousand trees in the Queretaro municipality. Grupo Mexico is the number one producer of tree saplings in the country.
  • Ternium delivers scholarships and supports education in a mining zone. The Roberto Rocca Education Program and the Universidad de Colima granted this year scholarships to 145 students from universities in Mexico City, Nuevo Leon, Coahuila, Veracruz, Puebla, Colima and Michoacan. Since its inception in 2006, the Roberto Rocca Education Program has granted 3,000 scholarships.
  • Esperanza Silver (Alamos Gold) presented a sustainable project for the Esperanza project in Morelos. The project involves the company’s involvement in the remediation of a nearby community landfill, and the collaborative support on the Lagunas de Zempoala, the national park Tepozteco, the biological corridor Ajusco-Chichinautzin as well as the state parks El Texcal, Sierra Montenegro and the biosphere reserve Sierra de Huautla.

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:  Gneiss hosted quartz-feldspar veinlet from a project in Oaxaca. Picture by Jorge Cirett.

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The Mining and Exploration News in Mexico: Highlights on the Second Week of October, 2019.

Chalcedonic quartz breccia

By Miguel A Heredia

During the forty-one week of the year (October 7th to October 13th, 2019), at least 29 press releases were announced by companies working in Mexico, with eight communicating production results, seven announcing financial rounds, five informing on exploration results, three commenting on Mexican issues, three reporting on resources and developments of their projects, two disclosing deals and corporate issues, and one notifying on social responsibility.  ON MEXICO ISSUES, Newmont-Goldcorp confirmed that the illegal blockade of its Peñasquito mine in Zacatecas was lifted on October 8, 2019. ON EXPLORATION, In Sonora, Azure released high grade results from 21 dump samples at its Alacran project, and announced the identification of five new targets.  In Chihuahua, Sable completed a ground geophysical survey at its Vinata project, and the Pan American-Radius JV announced the commencement of the phase 3 exploration work on its Amalia project. In Durango, Chesapeake provided updated results from its on-going regional exploration program near its Metates project. In Zacatecas, Advance Gold initiated the second phase of a geophysical survey on its Tabasquena project. ON MINING, Newmont-Goldcorp, Coeur, Consolidated Zinc, Endeavour, GoGold, Great Panther, Hecla, and US Antimony presented Q3, 2019 production results from their Mexican operations. ON FINANCING, Advanced Gold announced its plan to rise up to $250K through a non-brokered private placement (Tabasquena project, Zacatecas). Discovery Metals announced its intention to complete a non-brokered private placement for gross proceed of up to $17M (Cordero deposit, Chihuahua).  First Mexican announced the share cancellation, consolidation, and reinstatement of its common shares, as well as its intention to complete a non-brokered private placement for gross proceeds of up to $0.5M (Guadalupe property, Sonora). Fortuna Silver announced the closing of convertible debenture of the over-allotment option for gross proceeds of $46M (San Jose mine, Oaxaca). Goldplay announced its plan to complete a brokered private placement for gross proceeds of up to $2.5M (San Marcial property, Sinaloa).  Magellan announced agreements to convert an aggregate of $2.45M of outstanding debt obligations into a newly-created series of preferred shares of the company (San Dieguito de Arriba flotation plant, Nayarit). Vizsla received conditional approval from TSX for the acquisition of Canam Alpine Ventures LTD, and resumed trading on October 9, 2019 (Copala-Panuco project, Sinaloa). Santacruz reported that the Silva Family acquired an aggregate of 30M common shares, at a deemed price of CAD $0.05 per share for total deemed consideration of CAD $1.5M (Veta Grande project, Zacatecas). ON RESOURCES AND DEVELOPMENT, SilverCrest announced expansion drill results and the discovery of a new vein at its Las Chispas project in Sonora. Mexus Gold reported that the Merrill-Crow Au recovery plant for its Santa Elena mine in Sonora is en route. Mexican Gold presented a new NI 43-101 resource estimate for its Las Minas project in Veracruz. US Antimony informed that the fencing of the tailings pond, completion of the water well, and most of the major construction has been completed at its Puerto Blanco mill for its Los Juarez mine in Queretaro. ON DEALS AND CORPORATE ISSUES, Canuc completed its final payment for the El Tule 1 claim at its San Javier project in Sonora. Santacruz completed the acquisition of Carrizal Mining and reported that the Silva Family acquired an aggregate of 30M common shares.    ON SOCIAL RESPONSIBILITY, Alamos Gold received the corporate social responsibility (CSR) best practices award, for its achievements in social, economic and environmental sustainability (Mulatos mine, Sonora).

 ON MEXICO ISSUES

  • Newmont-Goldcorp Corporation, confirmed that the illegal blockade of its Peñasquito mine in Zacatecas was lifted on October 8, 2019, however, operations remain temporarily suspended pending to further assurances. “The company continues to work closely with the federal and state governments toward a sustainable, long-term solution, and lifting of the blockade paves the way for the government-sponsored dialogue to resume”.

ON EXPLORATION

  • Azure Minerals Limited, released high grade results from samples collected from 21 dumps that surround some of the historical old workings in the southeast area of its Alacran project in Sonora, and announced the identification of five new targets. This sampling returned very high grades with maximum values of 3,675 g/t Ag, 24.1 g/t Au, 2.3% Cu, 33.5% Pb, and 21.0% Zn. 10 samples returning values greater than 1,000 g/t Ag (average of 21 samples = 1,073g/t Ag); 17 samples returning values greater than 1.0g/t Au (average of 21 samples = 4.43g/t Au); 10 samples returning values greater than 1.0% Cu (average of 21 samples = 0.95% Cu); 12 samples returning values greater than 10.0% Pb (average of 21 samples = 14.92% Pb); and 10 samples returning values greater than 10.0% Zn (average of 21 samples = 9.28% Zn). “This first-pass sampling is very encouraging and further systematic sampling and detailed mapping of the veins will commence shortly to provide targets for follow-up trenching and drilling”.
  • Sable Resources, completed 170km of GroundMag conducted along E-W lines spaced 200m apart, and 8,950m of CSAMT surveys in nine lines at its Vinata project in Chihuahua. “The outcropping NNE epithermal vein system, which represents the main target at the project, appears coincident with a MagLow running on the western margin of the rhyolite intrusion for over 3 km in strike. Some stratigraphic features are also defined on the Mag sections; including a well-defined MagLow feature observed at the contact between the rhyolite intrusion and the interpreted limestones that underlie the upper volcanic sequence; this contact constitutes an additional potential target zone. At Vinata Sur the outcropping faults and breccias containing Fe-Mn oxides and associated Mn, Ba, Sb, As, Mo, Zn anomalies, hosted by volcanic rocks, are coincident with an elliptical shape NS oriented MagLow”. These geophysical surveys were carried out as preparation work for the first ever upcoming drilling campaign, which will consists of 2,000m to test for high-grade precious metal horizons approximately 200 metres below anomalous surface samples. This Phase 1 drill program will be expanded should positive results warrant additional drilling.
  • Pan American Silver Corp., – Radius Gold Inc JV, announced the commencement of the phase 3 exploration work on its Amalia project in Chihuahua. Pan American will operate this phase of exploration work, which will be focused on preparation and execution of the phase 3 drilling program that includes an additional 2,500m of diamond drilling.
  • Chesapeake Gold Corp., provided updated results from its on-going regional exploration program near its Metates project. “Three significant Au-Ag prospects, Crisy, San Javier and Cerro Pelon, continue to demonstrate district scale potential within different regional structural settings associated with intermediate composition intrusive rocks”. The most significant trench sampling results at Crisy prospect were 1.4 g/t Au and 75 g/t Ag over 43m; 1.9 g/t Au and 11 g/t Ag over 38m; and 2.4 g/t Au and 80 g/t Ag over 24m. At San Javier prospect, channel samples returned 1.6 g/t Au and 25 g/t Ag over 12m and 8.3 g/t Au and 1,972 g/t Ag over 1.6m. At Cerro Pelon prospect, channel samples collected on a new identified NW trending breccia yielded significant results such as 33 g/t Au over 3m, and 3.4 g/t Au over 10m.
  • Advance Gold Corp., initiated the second phase of a 3D IP survey on its Tabasquena project in Zacatecas. The goal is to explore to the south the 800m by 500m chargeability anomaly detected during the first phase IP survey, where the anomaly comes closest to surface.

ON MINING

  • Newmont-Goldcorp Corporation, reported Q3, 2019 production results from its Peñasquito mine in Zacatecas. It produced 58K Oz Au, 7.4M Oz Ag, 51.1M Lb Pb, and 83.1M Lb Zn. The illegal blockade impacted Peñasquito’s third quarter production by approximately 11K Oz Au, 1.7 M Oz Ag, 13.7 M Lb Pb and 22.8 M Lb Zn, and is expected to impact the company’s full-year results for the operation.
  • Coeur Mining Inc., presented Q3, 2019 production results from its Palmarejo mine in Chihuahua. The company milled 442,464 tonnes of 2.8 g/t Au and 152 g/t Ag, to produce 31.8K Oz Au and 1.7M Oz Ag. Metallurgical recoveries were 81.7% and 79.6% for Au and Ag respectively. Coeur announced that its full-year production guidance remains unchanged at 95K-105K Oz Au and 6.5-7.2M Oz Ag.
  • Consolidated Zinc Limited, announced production results from its Plomosas mine in Chihuahua for the period September, 2019. The company milled 1,363 tonnes with grades of 10.4% Zn, 7.5% Pb, and 32 g/t Ag, to produce 318K Lb Zn, 228.5K Oz Pb, and 1,402 Oz Ag. It also reported that 3,607 tonnes were milled and processed at the Aldama facility with grades of 10.4% Zn, 7.5% Pb, and 32 g/t Ag. The ore material processed produced high-quality clean Zn and Pb concentrates free to smelting and refining.
  • Endeavour Silver Corp., reported Q3, 2019 production results from their four Mexican operations. Consolidated production was a total of 234,196 tonnes of 144 g/t Ag and 1.49 g/t Au with metallurgical recoveries of 87.6% and 86.7% respectively, to produce 5K Oz Ag and 9.7K Oz Au. The table below shows the production figures  by separate mine:

  • GoGold Resources Inc., presented production results from its Parral tailings project in Chihuahua for the period Q3, 2019. The company produced 326.6K Oz Ag and 2,921 Oz Au (580.7 Oz AgEq).
  • Great Panther Mining Limited, announced Q3, 2019 production results from their Topia and Guanajuato mines. At Topia mine in Durango, it processed 21,761 tonnes of 0.86 g/t Au and 418 g/t Ag, with metallurgical recoveries of 4% and 93.8% respectively, to produce 344 Oz Au, 274.2K Oz Ag, 1.2M Lb Pb, and 1.5M Lb Zn (501.5K OZ AgEq). At its Guanajuato mine complex, the company processed 44K tonnes of 2.47 g/t Au and 119 g/t Ag with metallurgical recoveries of 85.4% and 85.6% respectively, to produce 3K Oz Au and 143.8K Oz Ag (383K Oz AgEq).
  • Hecla Mining Company, presented Q3, 2019 production results from its San Sebastian mine in Durango. The mill at San Sebastian operated at an average of 586 tonnes per day, to produce 0.6M Oz Ag and 4,719 Oz Au.
  • US Antimony Corporation, reported estimated sales for the period Q3, 2019 from their Mexican operations. It sold 381.7K Lb Sb, 12.5 Oz Au, and 3.4K Oz Ag.

ON FINANCING

  • Advance Gold Corp., announced its intention to rise funds up to $250K through a non-brokered private placement. Net proceeds will be used to advance its Tabasquena project in Zacatecas.
  • Discovery Metals Corp., announced its intention to complete a non-brokered private placement for gross proceeds of up to $17M, including an investment of 5M from Eric Sprott. “The balance of Mr. Sprott’s investment will be completed with the purchase of subscription receipts, which if converted, will increase his interest in the company to approximately 22%, assuming the private placement is fully subscribed (Cordero deposit, Chihuahua)”.
  • First Mexican Gold Corp., announced a number of administrative tasks that the company had to work diligently to get a reinstatement of trading of its common shares on the TSX. First Mexican cancelled 9M shares that it had issued without obtaining prior TSX approval, and then, 1M shares without TSX approval as payment to arrange a credit facility. Once this problem was solved by the director and offices of the compnay, First Mexican consolidated its common shares on a ten for one basis, reducing the number of its outstanding common shares from 81,844,360 to 8,184,429. It also announced its intention to complete a post-consolidation basis private placement for gross proceeds of up to $0.5M but TSX notified that it will be unable to complete the offering until the company shares are reinstated for trading. As such, the company has cancelled the offering and will look to complete it at a future time. First Mexican has worked diligently looking the revocation of a cease trade order issued by the various commission securities. The company finally reported that the trading of its common shares will reinstate on October 11, 2019 (Guadalupe property, Sonora).
  • Fortuna Silver Mines Inc., announced the closing of convertible debenture of the over-allotment granted to CIBC Capital Markets, Scotiabank, and BMO Capital Markets. The company sold unsecured convertible debentures for gross proceeds of USD $6M in connection with the bought deal offering completed on October 2, 2019 for gross proceeds of USD $40M, bringing the total aggregate gross proceeds to USD $46M (San Jose mine, Oaxaca).
  • Goldplay Exploration Ltd., announced its intention to complete a brokered private placement for gross proceeds of up to $2.5M. It also has granted the agent an option to increase the size of the offering by up to 20% of the number of shares. Net proceeds will be used for exploration work on its San Marcial property in Sinaloa.
  • Magellan Gold Corporation, announced agreements with its primary secured creditors and largest shareholder to convert an aggregate of $2.5M of outstanding debt obligations into a newly-created series of preferred shares of the company. The Preferred Shares will carry a $2.45 million liquidation preference, subject to adjustments, be convertible into common stock at $1.00 per share and bear a 10% annual dividend payable in kind at the option of the company. “The agreements release and reduce liens on certain assets of the company and convert portions of both its secured and unsecured debt holdings to preferred shares in order enhance the balance sheet and facilitate new financing arrangements (San Dieguito de Arriba flotation plant, Nayarit).
  • Vizsla Resources Corp., received conditional approval from TSX for the acquisition of Canam Alpine Ventures Ltd., and resumed trading on October 9, 2019 (Copala-Panuco project, Sinaloa).
  • Santacruz Silver Mining Ltd., reported that the Silva Family acquired an aggregate of 30M common shares, at a deemed price of CAD $0.05 per share for total deemed consideration of CAD $1.5M. This transaction represents approximately 14.7% of the issued and outstanding common shares of the company on a non-diluted basis and 15.3% on a partially-diluted basis assuming the exercise of the stock options owned by Mr. Silva (Veta Grande project, Zacatecas).

ON RESOURCES AND DEVELOPMENT

  • SilverCrest Metals Inc., reported the results of 31 expansion drill holes for Giovanni, Blanquita, and Las Chispas veins and the discovery of a new vein (Blanquita Dos vein) at its Las Chispas project in Sonora. The most significant expansion drill results were encountered in hole LC19-111 (Giovanni Vein) with 8.99 g/t Au and 1,424 g/t Ag (2,098 g/t AgEq) over a true width of 1.6m; hole LC19-107 (Las Chispas Vein) with 7.72 g/t Au and 1,105 g/t Ag (1,584 g/t AgEq) over a true width of 1.2m; and hole LC19-101 (Giovanni Vein), with 4.17 g/t Au and 642 g/t Ag (955 g/t AgEq) over a true width of 2.5m. These drill results confirmed that deeper mineralization which could expand the current resource estimate at Las Chispas project. SilverCrest also reported the discovery of a new vein called Blanquita Dos Vein. “The La Blanquita Dos Vein is a new near-surface discovery located in the hanging wall of the La Blanquita Vein. The most significant drill intersection encountered on this vein was in hole LC19-98 with 6.58 g/t Au and 274 g/t Ag (767 g/t AgEq) over a true width of 0.8m, including 13.1 g/t Au and 392 g/t Ag (1,375 g/t AgEq) over a true width of 0.4m. This vein is approximately 50 metres from La Blanquita and was discovered while drilling to depth for the Giovanni Vein and the Las Chispas Vein. “There are currently 18 core drills operating at Las Chispas; 16 surface and 2 underground. This includes one rig completing process plant site condemnation, 16 rigs completing in-fill and known vein expansion holes in the Babicanora Area veins, and one rig working on new vein targets in the Las Chispas Area with two more to be re-allocated after in-fill drilling completion. Approximately 80 holes for 30,000 metres remain to be completed in 2019 of which 25 to 35 holes (8,000 metres) are for the Las Chispas Area veins. An updated resource estimate, including the Las Chispas Area veins, is expected in H1, 2020, along with the ongoing feasibility study”.
  • Mexus Gold US, reported that the Merrill-Crow Au recovery plant for its Santa Elena mine in Sonora is en route, as well as a 80Kw generator which is necessary to run the plant. The company expects the new equipment to be operational by November 1st, 2019.
  • Mexican Gold Corp., presented a new 43-101 resource estimate for its Las Minas project in Veracruz. The new resource estimate as of September 12, 2019. Indicated resources are 5,457,000 tons of 1.78 g/t Au, 6.5 g/t Ag, and 1.25% Cu (3.67 g/t AuEq), for a total of 313K Oz Au, 1.15M Oz Ag, and 150.3M Lb Cu (645K Oz AuEq).  Inferred resources are 2,514,000 tons of 1.25 g/t Au, 5.5 g/t Ag, and 0.94% Cu (2.68 g/t AuEq) for a total of 101K Oz Au, 446K Oz Ag, and 51.96M Lb Cu (217K Oz AuEq).
  • US Antimony Corporation, informed that the fencing of the tailings pond, completion of the water well, and most of the major construction has been completed at its Puerto Blanco mill for the Los Juarez mine in Querétaro. Testing will proceed during the completion of the laboratory.

 ON DEALS AND CORPORATE ISSUES

  • Canuc Resources Corporation, completed its final payment to Minerales y Carbones de Mexico S.A. de C.V., for the El Tule 1 claim. Canuc has expanded its san Javier project area in Sonora State by 151.14 ha. The company now owns 17 contiguous mineral concessions along the San Javier mineralized corridor, extending to 3km from the historical Santa Rosa mine old workings.
  • Santacruz Silver Mining Ltd., completed the acquisition of Carrizal Mining S.A. de C.V., after purchasing the remaining 50% of outstanding shares of PCG Mining S.A. de C.V., which is the parent holding of Carrizal Mining S.A. de C.V, in consideration for the issue of 30M common shares of the compnay. It also reported that the Silva Family acquired an aggregate of 30M common shares, which represent approximately 14.7% of the issued and outstanding common shares of the Company on a non-diluted basis and 15.3% on a partially-diluted basis assuming the exercise of the stock options owned by Mr. Silva.

ON SOCIAL RESPONSIBILITY

  • Alamos Gold Inc., received the corporate social responsibility (CSR) best practices award, for its achievements in social, economic and environmental sustainability (Mulatos mine, Sonora).This award created by the Mexican Center for Philanthropy and the alliance for CSR was granted to Minas de Oro Nacional, a subsidiary of Alamos Gold as its program called “A new horizon for the families of Mulatos and Matarachi” was the winner in the category of community engagement.

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, chalcedonic quartz breccia with disseminated pyrite in a project in Zacatecas, Mexico.  Photo by Miguel A Heredia.

ADVANCE GOLD BEGINS SECOND PHASE GEOPHYSICAL SURVEY TO EXPAND LARGE AND CONTINUOUS CHARGEABILITY ANOMALY

2019 News _ Advance Gold Corp_

Advance Gold Corp. (TSXV: AAX) (“Advance Gold” or “the Company”) is pleased to announce that the second phase of geophysics is underway on the Company’s Tabasquena project in Zacatecas, Mexico. The goal of this second 3D induced polarization (IP) survey is to expand the grid completed in the first phase to the south where the anomaly comes closest to surface.

Sable Resources Completes Ground Geophysical Surveys and Initiates First Drill Test on Vinata Project.

Sable Resources _09102019

TORONTO, Oct. 9, 2019 /CNW/ – Sable Resources (TSX.V: SAE) (the “Company” or “Sable”) is pleased to announce that the first drill test will begin this week at its 100% owned Vinata Project. The initial program consists of a minimum of 2000m of core drilling to test the outcropping upper level epithermal veins and their projected extension under shallow quaternary gravel. This Phase 1 drill program will be expanded should positive results warrant additional drilling.