Pillow Lavas

By Miguel A Heredia

During the 49^thweek of the year (December 2^ndto December 8^th 2024), at least 24 press releases were announced by companies working in Mexico, and 3 news published by the media, with eleven disclosing deals and corporate issues, six reporting resources and development of their properties, three communicating production and financial results, three announcing financing rounds, three commenting on Mexican issues, and one informing on exploration results. ON MEXICO ISSUES, Mexican Senators approved the Federal Law of Rights 2025 in particular and now began the analysis and discussion of the Federal Income Law of the following year. Federal government proposed an increase in mining rights in the Federal Rights Law 2025. Impact Silver, Silver Storm, Heliostar, and Torex Gold reported the best drilling intercepts in Mexico on the first week of December, 2024. ON EXPLORATION, In Chihuahua, Kingsmen identified a significant new drill target called Saddle at its 100% owned Las Coloradas project in Chihuahua. ON MINING, Sierra Metals provided production and cost guidance for 2025 for its Bolivar mine in Chihuahua. Minera Alamos reported production results from its Santana mine in Sonora. Gold Resource provided an update on its operational and liquidity status as of December 2, 2024 (Don David Gold Mine, Oaxaca). ON FINANCING, Fortuna announced progress on its share buyback program (San Jose mine, Oaxaca). DynaResource announced the successful repayment of its temporary additional credit line with Ocean Partners Holdings Limited (San Jose de Gracia project, Sinaloa). Minera Alamos closed a bought deal private placement for gross proceeds of CADS $8,499,900 (Santana mine, Sonora). ON RESOURCES AND DEVELOPMENT, Silver Tiger commenced an underground drilling program at its El Tigre project in Sonora. Oroco provided a corporate update regarding its Santo Tomas project in Sinaloa. Impact Silver released results from its ongoing drill program on the Tres Amigos Zone at its Plomosas mine in Chihuahua. Silver Storm announced results from five holes drilled at its Parrilla mine in Durango. Heliostar released additional results from its 2024 drill program at its 100% owned Ana Paula project, Guerrero. Torex Gold reported results from its 2024 El Limon Guajes underground drilling program. ON DEALS AND CORPORATE ISSUES, Apolo Silver provided a corporate update (Cinco de Mayo project, Chihuahua). Regency Silver announced the appointment of a new member to its Board of Directors (Dios Padre project, Sonora). Chesapeake filed appeal upholding the cancellation of the San Vicente 3 mineral concession (Metates project, Durango). Heliostar announced the appointment of Ramon Tomas Dávila Flores to its Board of Directors (Ana Paula project, Guerrero). Oroco Resource provided an update regarding its upcoming annual general meeting scheduled for December 12, 2024 (Santo Tomas project, Sinaloa). Osisko Development announced the appointment of a new member to its Board of Directors (San Antonio Gold project, Sonora). Teck Resources reported the appointment of its Vice President, Investor Relations (San Nicolas project, Zacatecas). Torex communicated three fatalities at the El Limon Guajes underground mine, Guerrero. First Majestic announced the effectiveness of its Registration Statement on Form F-4 related to its acquisition of Gatos Silver, Inc. Gatos Silver communicated date of special meeting of stockholders and filing of definitive proxy statement (Cerro Los Gatos mine, Chihuahua). ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUE

Mexican Senators approved the Federal Law of Rights 2025 in particular and now began the analysis and discussion of the Federal Income Law to increase its collection during 2025 in activities such as mining, immigration services and use of Protected Natural Areas, and also start charging aviation schools and cruise passengers. In the Federal Rights Law 2025, the rate of special mining rights is increased for the following year from 7.5 to 8.5% on the income obtained by the holders of mining concessions derived from the alienation or sale of the extractive activity. In addition, the rate of extraordinary mining rights is raised from 0.5 to 1.0% on the income obtained by mining concessionaires derived from the sale of gold, silver and platinum. The Morena senator, Ochoa Fernández, explained that these increases in mining rights rates are made to address the increase in international metal prices. The fees for the use or exploitation of the 181 Protected Natural Areas (ANP) at the federal level are also raised by 100%.
Federal government proposed an increase in mining rights in the Federal Rights Law 2025, which is about to be approved in the Senate of the Republic. It comes after in 2024 its collection has fallen by almost a third. In January-September 2024, the government collected MXP $6,205.60M (approx USD $305.7M) for special mining rights and extraordinary mining rights, according to the latest quarterly report from the Ministry of Finance and Public Credit (SHCP) to the Congress of the Union, while in the same period of 2023, the collection of said rights amounted to MXP $9,177.71M pesos (approx USD $452.1M), so this year collection has fallen 32% in real terms. The SHCP proposes to increase the special mining right rate from 7.5 to 8.5% on the income obtained by the holders of mining concessions derived from the alienation or sale of the extractive activity. In addition, it seeks to increase the rate of extraordinary mining rights from 0.5 to 1.0% on the income obtained by mining concessionaires derived from the sale of gold, silver and platinum. For the special right on mining, the federal government has collected MXP $5,422.70M (approx USD $267.1M) in the first nine months of 2024 (an annual drop of 34%), while for the extraordinary right on mining it has obtained MXP $782.9M (approx USD $38.6M) (17% less than in 2023). In addition to these rights, in Mexico two others are charged for this activity: the right for mining concessions and assignments, and also the additional right on mining. No increases are proposed for these two rights. In total for the four rights, the federal government has collected MXP $8,981.80M (approx USD $442.5M) at the end of September 2024, a drop of 26% annually. In the Federal Law of Rights 2025, which will be discussed today in the plenary session of the Senate of the Republic together with the Federal Income Law, the rights charged for immigration services, as well as for the use and use of Protected Natural Areas. The Morena deputy, Alfonso Ramírez Cuéllar, has assured that with these reforms to the Federal Rights Law, “a budget of more than MXP $140,000M (approx USD $6,896.6M)” will be obtained with respect to what is collected from rights in 2024.
Impact Silver Corp., Silver Storm Mining Ltd., Heliostar Metals Limited, and Torex Gold Resources Inc., reported the best drilling intercepts in Mexico on the first week of December, 2024. Details are shown in the table below:

ON EXPLORATION

Kingsmen Resources Ltd., identified a significant new drill target called Saddle at its 100% owned Las Coloradas project in Chihuahua. It is part of its ongoing field reconnaissance in preparation for an upcoming drill program. The Saddle target is situated between two magnetic highs, where a deep wedge of volcanics and sediments, along with veins and structures, are believed to underlie surface precious metal anomalies. The area revealed anomalous values of gold and silver, along with other metals such as copper, lead, and zinc, associated with quartz-carbonate veins. This geochemical anomaly is both within and adjacent to the targets indicated by geophysical surveys. The geophysical data suggests the potential for discovering significant blind mineralization in this area.

ON MINING

Sierra Metals Inc., provided production and cost guidance for 2025 for its Bolivar mine in Chihuahua. The company expects to produce between 25.1M-27.4M Lb Cu, 680K-740K Oz Ag, and 7.4K-8.1K Oz Au at cash and AISC of $2.64-$2.77 and $3.45-$3.62 per Lb CuEq respectively.
Minera Alamos Inc., reported production results from its Santana mine in Sonora (All currency reported is Canadian dollars). In Q3, 2024, the company staked 3,800 Oz Au on the leach pad. As of September 30, 2024, recoverable gold inventory on the leach pad totaled 8,199 Oz Au. Subsequent to the quarter end, mining and stacking activities continued to increase with a total of 1,788 Oz Au mined in the month of October, of which 1,585 Oz Au were stacked on the heap leach pad with the remainder stockpiled for crushing prior to placement on the heap leach pad. The average grade of mineralized material mined during Q3-2024 (and October) was 0.60 g/t. The company also reported deferred revenue of $3.45M in exchange for the sale of 1,000 Oz Au; loss from the re-start of mine operations of $436.2K; and cash and cash equivalents of $5.96M.
Gold Resource Corporation provided an update on its operational and liquidity status as of December 2, 2024. The company reported improvements in production at the Don David Gold Mine, Oaxaca during November, attributed to effective mine planning and resolution of previous operational issues. This led to slightly better than break-even cash flow for the month, aided by high metal prices and a favorable exchange rate. Despite these improvements, the company expressed concerns about its available cash balance and indicated that additional funding is necessary for mining equipment, mill upgrades, and working capital to support future production in the Three Sisters and Splay 31 areas. Without this capital, the company anticipates challenges in maintaining break-even cash flow beyond the first quarter of 2025. Additionally, Gold Resource Corporation identified an overpayment of approximately USD $3.8M in Mexican taxes for 2023 and has submitted a refund request, expected to be processed in 2025, although the timing remains uncertain.

ON FINANCING

Fortuna Mining Corp., announced progress on its share buyback program. It has repurchased an aggregate of 6,402,640 common shares on the open market of the New York Stock Exchange. Shares were repurchased at a weighted-average price of $4.77 per common share for a total gross amount of $30,529,066, excluding brokerage fees; these shares will be cancelled. To date, the Company has repurchased 41.88 percent of the 15,287,201 shares it is authorized to repurchase under the Normal Course Issuer Bid (San Jose mine, Oaxaca).
DynaResource Inc., announced the successful repayment of its temporary additional credit line (TACL) with Ocean Partners Holdings Limited. The company recently fulfilled its obligation to repay USD $4M TACL due November 30, 2024, payable alongside USD $5.85M outstanding balance of the revolving credit line (RCL). Upon full repayment of the TACL and RCL, the maximum principal amount under the RCL was increased to USD $12.5M. The company has drawn down USD $9.85M, with interest accruing at the same rate as the ongoing and outstanding RCL with Ocean Partner (San Jose de Gracia project, Sinaloa).
Minera Alamos Inc., closed a bought deal private placement for gross proceeds of CADS $8,499,900 by selling 28,333,000 common shares at a price of CAD $0.30 per common share. Net proceeds will be used to fund the expansion and development of its Santana open-pit, heap-leach mine in Sonora, to fund the exploration and development activities at its Cerro de Oro Project in northern Zacatecas and for working capital and general corporate purposes.

ON RESOURCES AND DEVELOPMENT

Silver Tiger Metals Inc., commenced an underground drilling program at its El Tire project in Sonora, focusing on high-grade vein, sulfide, and shale zones. The company aims to deliver a Preliminary Economic Assessment (PEA) for the underground component by the first half of 2025. This initiative follows the successful completion of the near-surface open pit portion of the project, highlighting the significant exploration potential in the area, which is estimated to contain 10 to 12M tonnes at 225 to 265 g/t AgEq, equating to 73 to 100M Oz AgEq.
Oroco Resources Corp., provided a corporate update regarding its Santo Tomas project in Sinaloa, highlighting ongoing preparations for Phase 2 technical work. The project has shown a compelling economic case with a 22.6-year Life of Mine and a post-tax NPV of USD $1.48 B. The company is closely monitoring legal and regulatory changes in Mexico, particularly under the new administration of President Claudia Sheinbaum, to ensure continued support for its mining activities. Key initiatives include defining community investment opportunities, expanding technical programs for updated resource estimates, specifically including elevated resource classifications and an expanded Indicated Resource at South Zone sufficient to support a PFS-level technical report, and enhancing shareholder engagement. The update emphasizes Oroco’s positive outlook for the project’s future development and its potential as a capital-efficient, large-scale copper project.
Impact Silver Corp., released results from its ongoing drill program on the Tres Amigos Zone at its Plomosas mine in Chihuahua. Drilling highlights are shown in the table below:

All these Tres Amigos area drillholes are beyond the current active mining area and lie outside the JORC mineral resource. The Tres Amigos Zone remains open for exploration and drilling is continuing.

Silver Storm Mining Ltd., announced results from five holes drilled at the Norte-Sur Zone, within the Quebradillas mine within its Parrilla mine in Durango. Drilling highlights are shown in the table below:

The current drill results, when combined with historical holes drilled by First Majestic, are expected to have a positive impact on future Mineral Resources.

Heliostar Metals Ltd., released additional results from its 2024 drill program at its 100% owned Ana Paula project, Guerrero. Drilling highlights are shown in the table below:

Results continue to expand the High Grade Panel (HGP) and locally increase grades.

Torex Gold Resources Inc., reported results from its 2024 El Limon Guajes (ELG) underground drilling program. Drilling highlights are shown in the table below:

The results to date support the company’s target of extending the mine life of ELG underground by identifying new zones of higher-grade mineralization, expanding resources, and replacing and growing reserves.

ON DEALS AND CORPORATE ISSUES

Apolo Silver Corp., provided a corporate update, highlighting significant developments in 2024. The company successfully optioned the high-grade Cinco de Mayo Silver Project in Chihuahua and completed a CAD $13.5M financing, bolstering its treasury. To satisfy the option, and acquire a 100% interest in Cinco de Mayo, the company must first obtain the necessary licensing and permits to access the property and conduct mining activities on Cinco de Mayo, followed by completing no less than 20,000m of exploration drilling within five years. New leadership was added to strengthen the board and management team. The company is focused on advancing its silver exploration and resource development projects while maintaining strong community relations and securing necessary permits for operations at Cinco de Mayo project.
Regency Silver Corp., announced the appointment of a new member to its Board of Directors (Dios Padre project, Sonora).
Chesapeake Gold Corp., filed an appeal with the Collegiate Court in Mexico against a decision by the North Center III and Auxiliary Regional Chamber of the Federal Court of Administrative Justice, which upheld the cancellation of the San Vicente 3 mineral concession by the Dirección General de Minas (DGM). The company argued that the Chamber incorrectly determined that the DGM followed the required cancellation procedures, claiming this violated their fundamental rights, including due process and effective judicial protection (Metates project, Durango).
Heliostar Metals Limited announced the appointment of Ramon Tomas Dávila Flores with immediate effect to its Board of Directors (Ana Paula project, Guerrero).
Oroco Resource Corp., provided an update regarding its upcoming annual general meeting (AGM) scheduled for December 12, 2024. Due to a Canada Post strike, the meeting materials have been made available online, and shareholders are encouraged to access them directly. Shareholders can vote by proxy, with a deadline set for December 10, 2024 (Santo Tomas project, Sinaloa).
Osisko Development Corp., announced the appointment of a new member to its Board of Directors (San Antonio Gold project, Sonora).
Teck Resources Limited reported the appointment of its Vice President, Investor Relations effective December 1, 2024 (San Nicolas project, Zacatecas).
Torex Gold Resources Inc., regretfully communicated three fatalities at the El Limon Guajes underground mine, Guerrero. During the day shift on December 5th, a fatal carbon monoxide gas exposure occurred, which claimed the lives of two employees and one contractor at the El Limón Guajes underground mine. A fourth contract employee was also in the area and is currently in hospital and expected to recover. Underground have been suspended and an investigation to determine the cause of the accident will commence shortly.
First Majestic Silver Corp., announced the effectiveness of its Registration Statement on Form F-4 related to its acquisition of Gatos Silver, Inc. A special meeting for First Majestic shareholders is scheduled for January 14, 2025, to approve the issuance of common shares to Gatos stockholders. The record date for this meeting is November 25, 2024, and meeting materials are expected to be sent out around December 9, 2024. However, some Canadian shareholders may experience delays due to a Canada Post labour dispute. Both First Majestic and Gatos require shareholder approvals for the transaction, which is anticipated to close in early 2025, subject to certain conditions. The announcement also includes important information for investors regarding the transaction and the necessary documentation that will be available for review.
Gatos Silver Inc., communicated a special meeting of stockholders scheduled for January 14, 2025, to discuss the proposed merger with First Majestic Silver Corp. and filing of definitive proxy statement. The Board of Directors of Gatos Silver recommends that stockholders vote in favor of the merger. First Majestic shareholders will also hold a meeting on the same day to approve the issuance of shares related to the transaction. The merger is expected to close in early 2025, pending necessary approvals. Additionally, Gatos Silver plans to send out meeting materials to stockholders around December 6, 2024, although some deliveries may be affected by a labor dispute in Canada. The announcement includes important information for investors regarding the transaction and encourages them to read the relevant documents filed with regulatory authorities (Cerro Los Gatos mine, Chihuahua).

ON SOCIAL RESPONSIBILITY

No relevant news.

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

On the picture above, pillow lavas from the Chilitos Formation in the famous mining district of Zacatecas, Mexico. Photo taken by Miguel A Heredia.

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

December 1, 2024 / Gambusino Prospector / Leave a comment

By Jorge Cirett

During the 48th week of the year (November 25th to December 1st, 2024), companies working in Mexico posted at least 26 press releases. One company informed on exploration advances at its property, six companies presented quarterly results, six more informed on financing rounds, one released shares from escrow, one informed on dividends, one more on resumption of trading, one on the expiration of warrants, four companies updated on drilling programs and one on technical reports for its properties, two companies held their AGM’s, two more informed on contracting advertising services and two more announced appointments to the board. ON MEXICO ISSUES, taxes on the production of gold, silver and platinum have been increased by 1.5%. ON EXPLORATION, In Sonora, Tocvan Ventures announced drilling programs for Pilar and Gran Pilar projects. ON MINING, Santacruz Silver Mining, Orogen Royalties, Bear Creek Mining, Impact Silver, Luca Mining and Royalties Inc. released Q3 production results. ON FINANCING, Silver Storm Mining amended its previously completed private placement. Mithril Silver and Gold informed shares are to be released from escrow. Sailfish Royalty declared a dividend. Southern Silver Exploration announced a private placement for C$2.2 M, Sonora Gold another for C$0.5 M, Tocvan Ventures raised C$3 M and Regency Silver closed a first tranche financing for C$1.3 M. Endeavour Silver completed its prospectus offering for US$72.8 M. Silver Storm Mining resumed trading at the TSX. Vizsla Royalties informed on the expiration of warrants. Guanajuato Silver Company entered into an equity distribution agreement to issue up to C$7.5 M in shares. ON RESOURCES AND DEVELOPMENT, Fuerte Metals reported drilling results from Cristina, in Chihuahua. Guanajuato Silver Company updated on drilling and development at Pinguico, in Guanajuato. Heliostar Metals released drilling results from La Colorada, in Sonora. Silver Storm Mining completed an underground drilling program at La Parrilla, in Durango. Prime Mining filed a technical report with an updated MRE for Los Reyes, in Sinaloa. Defiance Silver updated on technical report work for its Tepal and Zacatecas projects in Michoacan and Zacatecas, respectively. ON DEALS AND CORPORATE ISSUES, Silver Storm Mining and GR Silver Mining contracted advertising services. Quetzal Copper and Orex Minerals announced appointments to the board. Silver Storm mining announced its AGM’s date. Elemental Altus Royalties announced AGM’s results. ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUES

The Deputies Chamber commission on fiscal matters approved a reform to increase the tax on mining, migration and use of protected land. The bill increases the mining special duty from 7.0 to 8.5% on income obtained from production of gold, silver and platinum.

ON EXPLORATION

Tocvan Ventures Corp. is to mobilize a diamond drill rig to the 105 ha Pilar project (51/49 Tocvan/Colibri) in Sonora. The program will focus in the Main Zone to produce a robust geological model for resource estimation. Additionally, an up to 2,000 m RC drill program is to test the 100% Tocvan controlled 2,100 ha expansion area (Gran Pilar). The next round of permitting will include extraction and processing of 50 K tonnes of bulk test mining scheduled for 2025. Total cost of the pilot facility including the extraction and processing of 50 k tonnes is expected to be US$1.7 M, with the recovery of 800 – 1,400 Oz Au and 5 K Oz Ag.

ON MINING

Santacruz Silver Mining Ltd. reported its financial and operating results for Q3, 2024, without expanding on figures from its Mexican operations. The company had US$78.2 M in revenue, had cash equivalents of US$18.2 M and a working capital of US$24.2 M (Zimpan, Hidalgo).
Orogen Royalties Inc. reported financial results for the third quarter of 2024. Royalty of C$2.1 M was earned with 614 Oz AuEq attributable, net income before tax of C$254.5 K, G&A expenses of C$1 M, cashflow of C$948 K and working capital of C$23.5 M. The revenue was generated from the Ermitaño property in Sonora, operated by First Majestic Silver, where Orogen holds a 2% NSR. During the quarter 259.9 K tonnes were processed averaging 3.50 gpt Au, 68 gpt Ag with recoveries of 94% Au, 66% Ag.
Bear Creek Mining Corp. reported its consolidated financial results for Q3 2024. At Mercedes, in Sonora, 103.9 K tonnes were mined, 102.5 K tonnes processed, averaging 3.40 gpt Au, recovering 96% Au, to produce 10,751 Oz Au, 76.9 K Oz Ag at cash cost $1,285 per Oz Au and an AISC of $1,697 per Oz Au. During the period the company obtained revenue of US$29.7 M, a gross profit of US$5.9 M, comprehensive earnings (loss) after taxes of US$(7.0) M and held US$7.7 M in cash and short-term investments. “Expenditures on exploration drilling during the quarter totaled $0.5 million and underground delineation drilling expenses totaled $1.34 million”.
Impact Silver Corp. announced its financial and operating results for the third quarter 2024. At Zacualpan, in Estado de Mexico, 32.9 K tonnes were processed grading 160 gpt Ag, to produce 152.1 K Oz Ag, 176 Oz Au. At Plomosas, in Chihuahua, 12.7 K tonnes were processed in Q3, with no more details given. For the first nine months of the year Plomosas grade was 47.2 gpt Ag, 7.9% Pb, 12.7% Zn, to produce 22 K Oz Ag, 344 tonnes Pb, 1,770 tonnes Zn in concentrate. After 18 months of rehabilitation, at the end of the quarter production stood at 70% of mill capacity. Revenue was $8.6 M, with a net loss of $1.2 M, a cash position of $6.4 M working capital of $7.1 M and no long-term debt.
Luca Mining Corp. reported its financial results for Q3 2024. Consolidated production from the Campo Morado (Guerrero) and Tahuehueto (Durango) mines during the period included 153 K tonnes mined, 151.2 K tonnes milled at an average rate of 1,758 tpd, averaging 1.63 gpt Au, 72.2 gpt Ag, 0.69% Cu, 0.66% Pb, 2.18% Zn, recovering 45.5% Au, 45.2% Ag, 78.6% Cu, 52.3% Pb, 80.8% Zn, to produce 3,604 Oz Au, 158.8 K Oz Ag, 1.8 M Lbs Cu, 1.1 M Lb Pb, 5.9 M Lb Zn, at cash cost $1,877 per Oz AuEq, an AISC of $2,337 per Oz AuEq and an All-in cost of $2,364 per Oz AuEq. Net quarterly revenue was US$18.1 M, EBITDA was (US$1.1M), mine operating cash flow before taxes US$2.4 M. The Campo Morado improvement project is making “excellent progress”, with a 2,000 tpd rate on track a copper recovery of over 80%. In the next few months separate zinc, copper and bulk concentrates (Pb+Au+Ag) will be produced. Ramp up and commissioning is starting to meet objective levels of +800 tpd. A 5,000 m drilling campaign in 26 underground holes is in progress. The company expects to be debt free by 2026.
Royalties Inc. reported its results for the third quarter 2024. On Mexico, the company reported the intention to monetize the Bilbao property in Zacatecas, ideally by selling to an existing silver producer, and the intention to achieve success in the lawsuit against Capstone Gold, a subsidiary of Capstone Copper, to properly recognize and make payments on the 2% NSR on the five Portree claims, in production since 2020 as part of the Cozamin mine in Zacatecas.

ON FINANCING

Silver Storm Mining Ltd. amended its previously completed private placement: “The total number of common shares of the Company issued pursuant to the Offering totaled 35,392,610, rather than the previously stated amount of 35,317,610. The number of common share purchase warrants issued totaled 17,696,305, versus the previously stated amount of 17,658,805. Cash finders’ fees paid pursuant to the Offering totaled $124,990 rather than the $133,990 previously stated. The number of finders’ warrants issued totaled 620,700 as opposed to the previously stated amount of 670,950. As such, Red Cloud Securities Inc. received $2,100 cash finder’s fees and 10,500 finder’s warrants, and Canaccord Genuity Corp. received 242,700 finder’s warrants.” (La Parrilla, Durango).
Mithril Silver and Gold Ltd. confirmed that 500 K ordinary shares in the company are to be released from voluntary escrow on December 3, 2024 (Copalquin, Durango).
Sailfish Royalty Corp. declared the company’s third quarterly dividend for 2024, of US$0.0125 per common share, payable on January 15, 2025. Sailfish also announced the settling of US$205 K in interest accrued to November 24, 2024 through the issuance of 188.6 K shares, subject to TSX approval (Gavilanes, Durango).
Southern Silver Exploration Corp. is to undertake a non-brokered private placement for gross proceeds of C$2.2 M. The funds will be used for the advancement of its Cerro Las Minitas project in Durango.
Sonoro Gold Corp. announced a non-brokered private placement offering for gross proceeds of CAD $500 K. The net proceeds are to be used development of Cerro Caliche, in Sonora.
Endeavour Silver Corp. announced the completion of its prospectus offering announced on November 20, 2024 for gross proceeds of US$72.8 M. “The Offering was led by BMO Capital Markets, together with a syndicate of underwriters consisting of CIBC World Markets Inc., TD Securities Inc., Ventum Financial Corp. and H.C. Wainwright & Co., LLC.” Proceeds are to be used on the advancement of the Pitarrila project in Durango.
Silver Storm Mining Ltd. announced the resumption of trading of its shares on the TSX Venture Exchange on November 28, 2024 (La Parrilla, Durango).
Vizsla Royalties Corp. reminds holders of outstanding common share purchase warrants issued on June 24, 2024, that the warrants will expire on December 20, 2024 (Panuco, Sinaloa).
Regency Silver Corp. completed the first tranche of a previously announced non brokered private placement for total proceeds of C$1.27 M (Dios Padre, Sonora).
Tocvan Ventures Corp. arranged a non-brokered private placement for gross proceeds of up to C$3 M, including C$1.8 M from an institutional investor. Proceeds are to be used on the Gran Pilar project, in Sonora. “The Units issued to the Investor under the Institutional Offering will be subject to the terms of an escrow agreement. The Company will receive $75,000 per month from the closing date of the Institutional Offering over the next 24 months….. The Investor will receive a corporate finance fee of $126,000, payable via the issuance of 262,500 Common Shares and related Warrants” (Pilar, Sonora).
Guanajuato Silver Company Ltd. entered into an equity distribution agreement with Research Capital Corp. to establish an at-the-market equity program. The company may issue up to C$7.5 in common shares under the program. “The Company will pay the Agent a commission of 2.5% of the gross offering proceeds from each sale of Offered Shares..” (El Cubo, San Ignacio and Valenciana Mines Complex, Guanajuato).

ON RESOURCES AND DEVELOPMENT

Fuerte Metals Corp. reported results from five holes at its Cristina project in Chihuahua. “Fuerte has now reported twenty-five holes totalling 6,976.5 metres of drilling as part of a 40-50 hole, 21,000 metre drill program.” Highlighted core length intervals comprise 0.7 m @ 2.30 gpt Au, 134 gpt Ag, 0.11% Cu, 1.4% Pb, 8.8% Zn; 10.5 m @ 1.40 gpt Au, 19 gpt Ag (including 1.2 m @ 8.60 gpt Au, 21 gpt Ag); 0.4 m @ 8.20 gpt Au, 39 gpt Ag, 1.1% Pb, 1.3% Zn; 2.8 m @ 1.20 gpt Au, 88 gpt Ag, 0.24% Cu, 1.5% Pb, 5.0% Zn; 0.5 m @ 2.00 gpt Au, 323 gpt Ag, 0.94% Cu, 5.9% Pb, 18.0% Zn; 1.5 m @ 1.60 gpt Au, 54 gpt Ag, 0.16% Cu, 1.6% Pb, 3.5% Zn; 3.7 m @ 1.20 gpt Au, 6 gpt Ag, 0.2% Zn; 3.3 m @ 1.00 gpt Au, 61 gpt Ag, 0.20% Cu, 0.7% Pb, 2.3% Zn; 2.6 m @ 1.60 gpt Au, 10 gpt Ag, 0.4% Pb, 1.4% Zn; 1.1 m @ 3.40 gpt Au, 150 gpt Ag, 0.21% Cu, 8.5% Pb, 4.8% Zn; 21.0 m @ 0.20 gpt Au, 8 gpt Ag, 0.2% Pb, 0.6% Zn. The company is aiming to produce a new mineral resource estimate based on underground mining for Q3 2025.
Guanajuato Silver Company Ltd. updated on drilling and development programs at its Pinguico property in Guanajuato. A total of 446 m were drilled in three holes at the San Jose vein, with highlighted intervals comprising 0.70 m @ 0.75 gpt Au, 94 gpt Ag; 0.65 m @ 0.77 gpt Au, 55 gpt Ag; 0.75 m @ 1.26 gpt Au, 85 gpt Ag; 1.16 m @ 1.18 gpt Au, 51 gpt Ag; 0.45 m @ 0.87 gpt Au, 55 gpt Ag; 1.20 m @ 0.72 gpt Au, 95 gpt Ag; 0.85 m @ 2.04 gpt Au, 124 gpt Ag. The first drill hole in the property to intersect the Veta Madre structure intercepted 60 m of a highly altered deformation zone, with an interval of 1.13 m @ 0.56 gpt Au, 2 gpt Ag in a quartz stockwork. Underground mining continued at Pinguico, with the aim of reaching in Q2 2025 the historical underground backfill stockpile with an indicated resource of 25.6 K tonnes @ 1.67 gpt Au, 166 gpt Ag. Development production during the quarter contributed 2.6 K tonnes @ 1.19 gpt Au, 102 gpt Ag (203 gpt AgEq).
Heliostar Metals Ltd. announced results from 3,257 m of drilling in 24 holes at La Colorada, in Sonora. La Colorada ceased production in September 2023 and is currently producing gold from residual leaching. The company is evaluating the potential to restart mining in 2025, hence the drill program to expand the mineral reserve, targeting shallow zones to the east and west of the Creston Pit. The results show narrow to wide, low to high grade oxide gold intercepts hosted in three veins: the North, Intermediate and South Veins and are surrounded by smaller mineralized vein zones. Highlighted true width intercepts comprise 11.85 m @ 1.71 gpt Au, 22 gpt Ag (including 1.25 m @ 13.10 gpt Au, 20 gpt Ag); 16.07 m @ 0.34 gpt Au, 69 gpt Ag; 4.10 m @ 2.27 gpt Au, 4 gpt Ag; 11.70 m @ 2.22 gpt Au, 5 gpt Ag (including 2.70 m @ 8.79 gpt Au, 5 gpt Ag); 4.50 m @ 18.50 gpt Au, 20 gpt Ag; 31.40 m @ 1.24 gpt Au, 5 gpt Ag; 14.50 m @ 1.69 gpt Au, 5 gpt Ag (including 1.25 m @ 16.60 gpt Au, 14 gpt Ag); 4.75 m @ 0.49 gpt Au, 158 gpt Ag.
Silver Storm Mining Ltd. completed its underground drilling program at La Parrilla, in Durango. A total of 18,682 m was drilled, with 12,265 m reported to date. “Upon completion of the QA/QC as well as interpretation, the additional 6,417 m will be reported over the coming weeks”. Completion of a new resource estimate update is targeted for January 2025.
Prime Mining Corp. filed a technical report with the updated mineral resource estimate for its Los Reyes project in Sinaloa. The resources have been divided in: Open Pit Milled Resources with 1.27 M Oz AuEq (24.7 M tonnes @ 1.60 gpt AuEq) as indicated resources and 335 K Oz Au (7.2 M tonnes @ 1.45 AuEq) as inferred resources; Underground Milled Resources of 664 K Oz AuEq (4.1 M tonnes @ 5.00 gpt AuEq) as indicated resources and 406 K Oz AuEq (4.1 M tonnes @ 3.12 gpt AuEq) as inferred resources; Open Pit Heap Leach Resources with 261 K Oz AuEq as indicated resources and 76 K Oz Au as inferred resources. Total indicated resources add up to 49 M tonnes @ 0.95 gpt Au, 34.2 gpt Ag (1.39 gpt AuEq) containing 1.49 M Oz Au, 54 M Oz Ag (or 2.19 M Oz AuEq) and inferred resources to 17.2 M tonnes @ 0.97 gpt Au, 39 gpt Ag (or 1.48 gpt AuEq), containing 538 K Oz Au, 21.6 M Oz Ag (or 817 K Oz AuEq). Five drill rigs are currently active at Los Reyes, with the 2024 drill program extended from 40,000 to 50,000 m, and focusing on extending high-grade shoots and connecting between deposits and generative target drilling for high-grade at Las Primas, Mariposa, Fresnillo, Mina and other areas.
Defiance Silver Corp. updated on technical reports for its projects. At Tepal, in Michoacan, the company is preparing a new technical report including a new mineral resource estimate (MRE). A new PEA is to follow the release of the MRE during the course of 2025. At San Acacio, in Zacatecas, a revised technical report is being prepared. More than 25,400 m of drilling have been completed at San Acacio since the 2014 technical report, which did not comply with NI-43-101 standards. The drilling and extensive surface geological and structural mapping and surface soil sampling of the entire project are to be incorporated into current geological and resource models to prepare a mineral resource estimate and report a technical report for the Zacatecas project by mid-December.

ON DEALS AND CORPORATE ISSUES

Silver Storm Mining Ltd. entered into an advertisement’s services agreement with Peter Epstein for an initial term of six months, subject to renewal or cancellation. “The Company has previously convened a three-month trial with Mr. Epstein from April 1, 2024 to June 30, 2024 for the same services mentioned above …” (La Parrilla, Durango).
Quetzal Copper Corp. announced Ms. Lisa Thompson is joining the board of directors. At the same time John Fraser is departing from the board (Cristinas, Chihuahua).
Silver Storm Mining Ltd. is to hold its annual general meeting (AGM) on January 25, 2024 (La Parrilla, Durango).
GR Silver Mining Ltd. has engaged the services of ICP Securities Inc. to provide automated market making services under which ICP will be paid a monthly fee of $7,500 plus taxes (Plomosas, Sinaloa).
Elemental Altus Royalties Corp. announced results from its annual general meeting (Mercedes, Sonora).
Orex Minerals Inc. announced the appointment of Mr. Rakesh Malhotra as CFO. Ross Wilmot will be resigning as CFO and as a director of the company (Sandra, Durango).

ON SOCIAL RESPONSIBILITY

No Relevant News.

On the image below: Drilling under the scarp, in Sonora. Drone picture by Jorge Cirett.

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

November 17, 2024 / Gambusino Prospector / Leave a comment

By Jorge Cirett

During the 46^thweek of the year (November 11^th to November 17^th,2024), companies working in Mexico posted at least 24 press releases. Two companies informed on exploration advances at their properties, ten companies presented quarterly results and one other actualized its production forecast for the second half of 2024. Two companies released drilling results from their advanced properties, with one also providing channel sample results. One company announced a private placement probably to be used on properties in Mexico, two more companies with properties in Mexico announced financing rounds to be applied outside from Mexico and a royalties company signed a lending agreement. Two companies updated on exploration and drill results from their advanced properties, and one more company informed on its evaluation on the keeping or disinvestment on an advanced property. One company updated on legal proceedings on the cancellation of a key concession, one more held its AGM and other two informed on operating issues impacting a silverstream. ON MEXICO ISSUES most of the concentrate end-dump trailers hijacked from the Peñasquito mine were recovered empty. Two miners are dead, five unaccounted for in a mine cave-in in Sinaloa. ON EXPLORATION, In Sonora, Tocvan Ventures provided exploration results from Pilar (Gran Pilar?). In Chihuahua, Kingsmen Resources announced a drilling program at Las Coloradas. ON MINING, Gatos Silver, Mag Silver, Orla Mining, SilverCrest Metals, Discovery Silver, Avino Silver, Prime Mining, Sailfish Royalty, Dyna Resource and US Antimony, released Q3 production results and Heliostar Metals released its forecast on production for H2 2024. ON FINANCING, Apollo Silver and Osisko Development closed private placements for C$13.5 M and US$57.5 M respectively. Orex Minerals completed a warrants exercise program, Elemental Altus Royalties amended a credit facility. ON RESOURCES AND DEVELOPMENT, Osisko Development is awaiting on a permit to operate its San Antonio project in Sonora, and evaluating the sale of the asset. Endeavour Silver updated on exploration and development at Pitarrilla, in Durango. Torex Gold released results from resource upgrading drilling at EPO, in Guerrero. ON DEALS AND CORPORATE ISSUES, Chesapeake Gold updated on legal proceedings on the cancellation of a key mining concession at its Metates project in Durango. GR Silver held its AGM. Fresnillo plc and Industrias Peñoles are resolving issues arising from operational challenges that affect a silverstream. ON SOCIAL RESPONSIBILITY, Discovery Silver released its 2023 ESG report.

ON MEXICO ISSUES

Nine of the eleven hijacked end-dump trailers carrying concentrate from the Peñasquito mine in Zacatecas were recovered empty on a dirt road in Durango. No detentions were made (How on this Earth can you disappear 240 tonnes of concentrate that can only be processed in a few sites in the country, and the export ports being controlled by the Navy? Yes, it is a rhetoric question).
Five miners were trapped by a cave-in at a mine in Badiraguato, Sinaloa. Two persons are presumed dead and the fate of another three to five is unclear.

ON EXPLORATION

Kingsmen Resources Ltd. announced a diamond drill program for its 850 ha Las Coloradas project in Chihuahua. The company selected three principal target areas, the Mine, Aguilar and Leona on the Soledad structure. “The Mine target includes the old Las Coloradas mine on the SE end of the Soledad structure/vein system, and adjacent mineralized structures. The Leona target covers an area of old high grade workings approximately 530 meters long on the NW end of the Soledad II structure. The Aguilar target covers an area of old high grade workings approximately 250 meters long on the NW end of the Soledad structure/vein system”.
Tocvan Ventures Corp. provided exploration results from its Gran Pilar project in Sonora , adjacent to its Pilar project). A total of 541 soil samples have been collected in the project, returning up to 21.2 gpt Au, >2,000 gpt Ag, 0.62% Cu, 12.7% Pb, 2,3% Zn. “ …. zones of significant and consistently high values of gold have been identified showing several kilometers of prospective trend that remains open to the east for further expansion”.

ON MINING

Gatos Silver Inc. announced third quarter 2024 financial and operating results. At Cerro Los Gatos (70% Gatos Silver, 30% Dowa Metals and Mining Co.), in Chihuahua, 298.6 K tonnes were milled in the period at a rate of 3,246 tpd, averaging 285 gpt Ag, 4.0% Zn, 2.0% Pb, 0.30 gpt Au, to produce 2.42 M Oz Ag, 1,450 Oz Au, 11.4 M Lb Pb, 16.5 M Lb Zn (3.84 M Oz AgEq). By-product cash cost was $3.69 per Oz Ag and the by-product AISC $9.61 per Oz Ag. During the quarter Gatos Silver and First Majestic Silver Corp. entered into a definitive merger agreement.
Mag Silver Corp. announced unaudited consolidated financial results for Q3 2024. A total of 332.3 K tonnes of ore grading 481 gpt AgEq was processed at Juanicipio, in Zacatecas, producing 4.9 M Oz Ag, 7.1 M Oz AgEq, at negative cash cost of $0.12 per Oz Ag ($8.38 per Oz AgEq) and an AISC of $3.28 per Oz Ag ($10.83 per Oz AgEq), generating US$109.9 M in operating cash flow and US$96.9 M in free cash flow (Mag’s share on the Juanicipio JV is 44%). During the period Mag Silver entered into an earn-in and option exploration agreement in which Apollo Silver Corp. can acquire the Cinco de Mayo property in Chihuahua.
Orla Mining Ltd. announced results for the third quarter of 2024. Production at Camino Rojo in Zacatecas was 43,788 Oz Au during the period at cash cost $482 per Oz Au and an AISC of $720 per Oz Au. Average mining rate was 52 K tpd, with 18.4 K tonnes of ore stacked averaging 0.93 gpt Au. A 30,000 m drilling program is underway to test and expand mineralization beneath existing resources. “….. results confirm the presence of flat-lying (mantos) and steep sulphide replacement-style mineralization, along with skarn-type alteration, extending at least 500 meters down plunge from the existing resource”. Net income was US$21.1 M and cash flow from operating activities US$52.0 M. In October the outstanding balance of US$58.4 M was repaid on its revolving credit facility of US$283.4 M. The company elevated the 2024 production guidance to 130,000 to 140,000 Oz Au. At the end of the period net cash was US$122.5 M.
SilverCrest Metals Inc. released financial results for Q3 2024. At Las Chispas, in Sonora, 4.4 km of development were completed, 124.2 K tonnes were mined at a rate of 1,350 tpd, 121.8 K tonnes milled, averaging 3.87 gpt Au, 366 gpt Ag (or 674 gpt AgEq), recovering 98.5% Au, 98.3% Ag to produce 14,928 Oz Au, 1.41 M Oz Ag (or 2.66 M Oz AgEq) at cash cost $8.85 per Oz AgEq and an AISC of $13.72 per Oz AgEq. Revenue in the period was US$80.4 M, an operating cash flow of US$44.2 M and free cash flow of US$36.2 M. SilverCrest had US$158.2 M by the end of September. In October the acquisition of Silver Crest Metals by Coeur Mining Inc. was announced.
Discovery Silver Corp. announced financial results for Q3 2024. At the end of the period the company had a net loss of C$5.3 M, 397.7 M shares outstanding, cash and cash equivalents of C$33.4 M, total assets of C$125.1 M, liabilities for C$6.2 M and a working capital of C$30.9 M (Cordero, Chihuahua).
Avino Silver & Gold Mines Ltd. announced its consolidated financial results for the third quarter of 2024. During the period the company processed 156.5 K tonnes of ore to produce 281.8 K Oz Ag, 1,625 Oz Au, 1.77 M Lb Cu (or 670.9 K Oz AgEq) at its Avino mine in Durango. Revenues were US$14.6 M, mining operating income of US$5.7 M, net income of US$1.2 M, EBITDA of US$3.8 M, cash flow from operations of US$4.1 M and a mine operating cash flow before taxes of US$6.7 M. At the end of the period the company had US$7.8 M in cash and working capital of US$15.9 M. Guidance remains on track to produce 2.5 M to 2.8 M Oz AgEq in 2024. Avino continued to process historical stockpiles from the nearby La Preciosa project: “as part of a sampling program to better prepare for fresh mill feed. Initial recoveries from the lower-grade material were better than expected and provide for potential upside as the project moves forward”. The operations team is in the final stages for approval to move forward with underground development at La Preciosa.
Prime Mining Corp. reported its operating and financial results for Q3 2024. During the period the company announced the update of an open pit constrained resource at Los Reyes, in Sinaloa, of 49 M tonnes @ 0.95 gpt Au, 34.2 gpt Ag, containing 1.49 M Oz Au, 54 M Oz Ag (or 2.19 M Oz AuEq) in indicated resources and 17.2 M tonnes @ 0.97 gpt Au, 39 gpt Ag, containing 0.54 M Oz Au, 21.6 M Oz Ag (or 0.82 M Oz AuEq) in inferred resources. Prime Mining reported Loss and comprehensive loss of C$16.2 M, total assets of C$35.2 M, liabilities of C$0.9 M and total liabilities of C$1.7 M, with cash at the end of the quarter of C$21.2 M. Four drilling rigs are currently active at Los Reyes.
Sailfish Royalty Corp. announced operating and financial results for the third quarter 2024. Sailfish has no operations in Mexico, but holds 100% in the Gavilanes project in Durango.
Dyna Resource Inc. reported results for its third quarter 2024. During the period 61 K tonnes were mined at a rate of 663 tpd at its San Jose de Gracia project in Sinaloa, milling 61.9 K tonnes at a rate of 663 tpd, grading 3.78 gpt Au, recovering 75.4% Au to produce 5,676 Oz Au. “The Company intends to prioritize drilling high grade underground targets that can readily be brought into the mine plan as well as the continued regional program to better understand the potential of the significant land package at SJG”. Revenue was US$ 11.2 M during the period. Management believes it will achieve its production rate target of 25.5 K tonnes per month in Q4 2024. The company is working to improve plant recoveries.
Heliostar Metals Ltd. provided gold production guidance for the recently acquired San Agustin mine, in Durango, and the La Colorada mine, in Sonora. For the July-December 2024 period production expected for La Colorada is 4,700-4,800 Oz Au, 13.3 K-14.4 K Oz Ag (or 4,800-4,900 Oz AuEq) at cash cost $1,350-$1,450 per Oz Au and an AISC of $1,500-$1,600 per Oz Au. At San Agustin 14,650-14,950 Oz Au, 25,400-25,500 Oz Ag (or 15,200-15,300 Oz AuEq), at cash cost $1,500-$1,600 per Oz Au and an AISC of $1,650-1,750 per Oz Au. La Colorada continues to produce Au from leach pads, but mining was paused by the previous operator on September 2023. Heliostar is to determine the economic viability of restarting operations and to complete a pre-feasibility study in early Q1 2025. At San Agustin mining operations ceased due to permitting constraints and is producing Au from existing leach pads. “The Company has submitted a permit application to expand the open pit that would allow mining at San Agustin to recommence in 2025. Without approval, the San Agustin Mine will transition to care and maintenance upon completion of leaching operations.”
United States Antimony Corp. reported third quarter 2024 financial and operational results. The company has no operations in Mexico, but holds the Los Juarez gold project in Queretaro.

ON FINANCING

Apollo Silver Corp. closed a fully subscribed non-brokered private placement for aggregate gross proceeds of C$13.5 M (Cinco de Mayo, Chihuahua).
Osisko Development Corp. closed its previously announced private placement for aggregate gross proceeds of US$57.5 M (San Antonio, Sonora).
Orex Minerals Inc. completed the company’s warrant exercise incentive program raising approximately $1.2 M (Coneto, Durango).
Elemental Altus Royalties Corp. signed an amendment to its credit facility, exercising the US$10 M accordion feature, with the borrowing limit increased to US$50 M and Royal Bank of Canada (RBC) as a new lender in the facility, joining National Bank of Canada (NBC) and Canadian Imperial Bank of Commerce (CIBC) (Mercedes, Sonora).

ON RESOURCES AND DEVELOPMENT

Osisko Development Corp. reported financial and operating results for Q3, 2024, including some information on its Mexican operations. At San Antonio, in Sonora, the company has kept the project in care and maintenance since Q3 2023, awaiting the next steps from the government of Mexico with respect to the permitting process and the status of open pit mining in the country. The company is “exploring the potential for a financial or strategic partner in the asset or for a full or partial sale of the asset”.
Endeavour Silver Corp. reported an update on the exploration and evaluation of its Pitarrilla property in Durango. Endeavour has re-logged the historic drill core, focusing on defining high-grade feeder structures of the Ag-Pb-Zn sulfide mineralization. The company has refurbished the ramp and extended it over 1.3 km to provide access to underground drilling. This work has confirmed the presence of at least four structures that extend through the manto (Palmito, Danna, Victoria and Casas Blancas veins), additional mineralized structures include the Norma and Danna hanging wall veins and the Peña dike. It is estimated that the first four veins are typically 3 m in width and have a vertical extent of 600 to 800 m and strike lengths of 700 m; these veins appear open to depth. Highlighted true width intervals comprise 82.92 m @ 0.02 gpt Au, 87 gpt Ag, 0.08% Cu, 0.6% Pb, 2.4% Zn; 25.94 m @ 0.04 gpt Au, 241 gpt Ag, 0.18% Cu, 0.9% Pb, 1.9% Zn (including 0.90 m @ 0.04 gpt Au, 2,020 gpt Ag, 1.6% Cu, 5.7% Pb, 4.0% Zn); 13.62 m @ 0.06 gpt Au, 183 gpt Ag, 0.04% Cu, 0.5% Pb, 1.8% Zn; 22.23 m @ 0.02 gpt Au, 112 gpt Ag, 0.06% Cu, 0.5% Pb, 3.6% Zn (including 0.92 m @ 0.21 gpt Au, 1,145 gpt Ag, 0.14% Cu, 1.6% Pb, 4.5% Zn). Highlighted Peña dike channel samples on the ramp comprise 4.20 m @ 0.07 gpt Au, 562 gpt Ag, 0.78% Cu, 5.3% Pb, 2.5% Zn; 5.35 m @ 0.09 gpt Au, 424 gpt Ag, 0.24% Cu, 4.9% Pb, 2.2% Zn; 3.85 m @ 0.09 gpt Au, 511 gpt Ag, 1.71% Cu, 3.0% Pb, 4.5% Zn.
Torex Gold Resources Inc. released assay results from the ongoing drill program at EPO, on its Morelos Complex, in Guerrero. Drilling has shown the potential to upgrade inferred resources to indicated resources in the NE portion of the EPO deposit. Highlighted core length intercepts comprise 36.6 m @ 9.57 gpt Au, 20 gpt Ag, 0.51% Cu (including 7.55 m @ 43.33 gpt Au, 48 gpt Ag, 0.51% Cu); 19.16 m @ 4.01 gpt Au, 3 gpt Ag, 0.30% Cu; 18.75 m @ 2.83 gpt Au, 28 gpt Ag, 1.26% Cu; 18.91 m @ 1.56 gpt Au, 73 gpt Ag, 2.62% Cu on resource conversion and 5.10 m @ 3.70 gpt Au, 30 gpt Ag, 1.37% Cu; 3.00 m @ 4.90 gpt Au, 21 gpt Ag, 0.28% Cu; 3.18 m @ 3.56 gpt Ag; 39 gpt Ag, 0.95% Cu; 8.33 m @ 0.44 gpt Au, 45 gpt Ag, 1.44% Cu; 2.37 m @ 0.46 gpt Au, 149 gpt Ag, 3.24% Cu; 3.59 m @ 0.51 gpt Au, 69 gpt Ag, 2.23% Cu, in advanced exploration beyond the resource boundary to the north of EPO. The EPO geology described in the press release highlights its complexity, with skarn, CRD and intermediate sulfidation epithermal mineralization events.

ON DEALS AND CORPORATE ISSUES

Chesapeake Gold Corp. updated on legal proceedings related to its 700 ha San Vicente 3 mineral concession. The proceedings against the Dirección General de Minas (DGM) are the company’s response to the cancellation of one of 12 concessions within its 4,260 ha Metates project in Durango (the largest undeveloped gold deposit in Mexico). “Chesapeake began nullity proceedings to have the cancellation of San Vicente 3 declared as null and void by the North Center III and Auxiliary Regional Chamber of the Federal Court of Administrative Justice (the “Chamber”) based on certain procedural arguments. The Chamber dismissed the Company’s lawsuit in a 2-1 split decision, with the dissenting judge finding the Company’s arguments to be well-founded. The Company plans to appeal before the Collegiate Court and to pursue all legal remedies available”. The concession covers part of the mineral resource, and its cancellation would hinder the ability to develop the Metates project as outlined on the PEA.
GR Silver Mining Ltd. held its annual general meeting (AGM) with all matters brought before the meeting approved (Plomosas, Sinaloa).
Fresnillo plc. has secured notice over operational issues at Industrias Peñoles Sabinas mine in Zacatecas, affecting silver output. There is a silverstream contract comprising a series of 12 agreements between Fresnillo and Peñoles, following which the London-listed miner has the right to receive all proceeds from the payable silver. “The operational challenges at the mine have prompted immediate discussions between the two companies to evaluate the situation and its implications for the agreement”.

ON SOCIAL RESPONSIBILITY

Discovery Silver Corp. released its 2023 ESG (environmental social and governance) report, highlighting the reception of the Quality Environmental Certification, the Socially Responsible Enterprise (ESR) Distinction and the Great Place to Work Certification (Cordero, Chihuahua).

On the image below: Clear vein scarps in a copper project in Sonora. Drone picture by Jorge Cirett.

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

November 3, 2024 / Gambusino Prospector / Leave a comment

By Jorge Cirett
During the 44th week of the year (October 28th to November 3rd, 2024), companies working in Mexico posted at least 23 press releases. Not a single company informed on exploration advances on its properties, two companies presented quarterly results and one other actualized its production forecast for 2024. Two companies released drilling results from their advanced properties while one also provided channel sample results and one more informed on the advance of mine construction. Two companies disclosed the status of their merger process, one the acquisition of a company with a past producing mine, one the sale of a project and one other on the optioning of a property. Two companies presented the results of their AGMs, one the appointment of a well-known industry leader, one the optioning of several adjacent mining concessions to their property and one more on the final approval for transferring assets. ON MEXICO ISSUES, a Supreme Court minister commented on the Judiciary Reform. ON EXPLORATION, no relevant news. ON MINING, Agnico Eagle and Capstone Copper released Q3 production results. Torex Gold increased its forecast on production for 2024. ON FINANCING, Mithril Gold and Silver is to raise A$12.5 M. Pinnacle Silver and Gold intends to make a private placement for US$800 K. Americas Gold and Silver completed a bought deal private placement for C$50 M. Guanajuato Silver closed a private placement for C$8.7 M and settled a US$1.8 M debt with shares. Defiance Silver paid a minor debt with shares. ON RESOURCES AND DEVELOPMENT, Heliostar Metals reported drilling results from Ana Paula, in Guerrero. Mithril Gold and Silver presented drilling results and channel sample results from Copalquin, in Durango. Torex Gold informed on the construction status at Media Luna project, in Guerrero. ON DEALS AND CORPORATE ISSUES, Minera Alamos entered into an agreement to acquire Sabre Gold Mines, which owns the past producing Copperstone mine in Arizona. Reyna Silver completed the acquisition of Reyna Gold. Golden Minerals is selling its Yoquivo project in Chihuahua to Advance Metals. Pinnacle Silver and Gold signed a LOI to acquire a mining property in Durango. Florida Canyon Gold received final approval on the sale of its Mexican assets to Heliostar Metals. Defiance Silver acquired six mining concessions adjacent to its Tepal project in Michoacan. Silver Spruce Royalties and Orogen Royalties informed on their AGMs. Capitan Silver informed on the appointment of Fernando Alanís to its board. ON SOCIAL RESPONSIBILITY, Vizsla Silver received the Socially Responsible Company Distinction (ESR) for the third year since 2022.

ON MEXICO ISSUES

Juan Luis González Alcántar Carrancá, a Supreme Court minister, stated that México is to be left without a Supreme Court if the federal government (the Ejecutive branch) does not abide by the Supreme Court ruling on the invalidation of the recent Judiciary Power Reform, adding that the sudden changes on the appointment of judges and ministers can impact on economic matters.

ON EXPLORATION

No Relevant News.

ON MINING

Agnico Eagle Mines Ltd. reported third quarter 2024 results, including information on its Mexican operations. At San Nicolás (50% AEM, 50% Teck), in Zacatecas, “Progress continues on the feasibility study work and execution strategy development, with plans to begin detailed engineering in the first half of 2025. Project approval is expected to follow, subject to receipt of permits and the results of the feasibility study”. At Pinos altos, in Chihuahua, 446 K tonnes were milled at a 4,848 tpd rate, grading 1.58 gpt Au, to produce 21,371 Oz Au at $2,174 per Oz Au production cost and total cash cost of $1,532 per Oz Au. At La India, in Sonora, residual leaching produced 4,259 Oz Au with a production cost of $2,300 per Oz Au and a total cash cost of $2,872 per Oz Au.
Torex Gold Resources Inc. increased the forecast production for 2024 from 400 K – 450 K to 450 K – 470 K Oz Au at its Morelos Complex in Guerrero. The total cash cost estimate remains at $860 – $910 per Oz Au and the AISC at $1,100 to $1,160 per Oz Au (El Limón-Guajes, Guerrero).
Capstone Copper Corp. reported financial results for the quarter ended September 30, 2024. The company produced a total of 47,460 tonnes Cu at cash cost $2.83 per Lb Cu. At Cozamin, in Zacatecas, 6 K tonnes were produced, driven by a milling rate of 3,609 tpd and having a cash cost of $1.82 per Lb Cu. The company has a total debt of $750.7 M, presenting $138.6 M in cash and short-term investments by the end of the period, as well as $377 M of undrawn amounts on the corporate revolving credit facility.

ON FINANCING

Mithril Silver and Gold Ltd. informed firm commitments for an oversubscribed capital raising of A$12.5 M, with Jupiter Gold and Silver Fund confirming Mithril shareholding at 16% and 1832 Fund (Bank of Nova Scotia) maintaining 8% post placement. The proceeds are to be used to complete the current 9,000 m drill program to expand the JORC resource, the upgrade of the access road and prepare targets Las Brujas-El Peru and Constancia-Jabali for drilling in 2025 (Copalquin, Durango).
Pinnacle Silver and Gold Corp. will be arranging a private placement to raise up to US$800 K in gross proceeds (El Potrero, Durango).
Americas Gold and Silver Corp. completed its previously announced “bought deal” private placement raising C$50 M in gross proceeds, which included 12.5 M subscription receipts issued pursuant to the exercise, in full, of the underwriter’s option agreement granted to the underwriters in connection with the private placement (Cosala, Sinaloa).
Guanajuato Silver Company Ltd. closed the previously announced private placement for gross proceeds of C$8.72 M. “The Private Placement includes an anchor order of C$3,000,000 by a corporation beneficially owned and controlled by Mr. Eric Sprott”. Additionally, the company has settled a US$1 M contingent payment upon the production of 3 M Oz AgEq at El Cubo mine, entirely with shares. Also, Guanajuato Silver settled US$1.8 M in outstanding liabilities to Ocean Partners UK Ltd. by issuing shares, and C$77.5 K in outstanding liabilities to three arm’s length third party entities (El Cubo, Guanajuato).
Defiance Silver Corp. entered into an agreement with a non-arm’s length administrative services agreement for services provided by an officer of the company for $7,980 (Zacatecas Silver, Zacatecas; Tepal, Michoacan).

ON RESOURCES AND DEVELOPMENT

Heliostar Metals Ltd. reported results from the 2024 drill program at Ana Paula, in Guerrero. The focus of the program is to extend the High Grade and Parallel panels to the west, testing the down-dip extension of the High Grade Panel while infilling the Parallel Panel target. Highlighted core length intercepts comprise 6.05 m @ 8.24 gpt Au; 5.00 m @ 2.10 gpt Au; 16.0 m @ 1.74 gpt Au, 16.0 m @ 16.7 gpt Au; 2.5 m @ 3.57 gpt Au. “Drilling is ongoing, with five holes completed to date for a total of 1994.8 meters”.
Mithril Silver and Gold Ltd. on October 18, 2024, released further results from resource expansion drilling at El Refugio mine target at its Copalquin project in Durango. Highlighted core length intervals comprise 4.60 m @ 5.51 gpt Au, 182 gpt Ag (including 0.60 m @ 28.0 gpt Au, 997 gpt Ag); 9.00 m @ 2.06 gpt Au, 90 gpt Ag (including 1.00 m @ 2.14 gpt Au, 259 gpt Ag); 1.60 m @ 5.09 gpt Au, 299 gpt Ag (including 0.50 m @ 12.15 gpt Au, 758 gpt Ag). Drilling the second half of the 9,000 m program is to recommence late in October. The 2021 MRE stands at 691 K tonnes @ 5.43 gpt Au, 114 gpt Ag, containing 121 K Oz Au, 2.5 M Oz Ag as indicated resources and 1.7 M tonnes @ 4.55 gpt Au, 152 gpt Ag, containing 252 K Oz Au, 8.4 M Oz Ag.
Mithril Silver and Gold Ltd. provided results from channel sampling from remnant wall rock of historic workings on the El Refugio area of its Copalquin project in Durango. At La Soledad, reported results comprise 1.75 m @ 9.19 gpt Au, 653 gpt Ag; 1.50 m @ 13.6 gpt Au, 545 gpt Ag at Lumbrera vein, 2.00 m @ 8.99 gpt Au, 736 gpt Ag; 0.90 m @ 9.57 gpt Au, 361 gpt Ag; 0.80 m @ 6.87 gpt Au, 267 gpt Ag; 1.50 m @ 1.72 gpt Au, 22 gpt Ag at Soledad Level 1, 0.94 m @ 8.81 gpt Au, 51 gpt Ag; 0.80 m @ 5.36 gpt Au, 143 gpt Ag; 1.80 m @ 4.58 gpt Au, 193 gpt Ag; 3.40 m @ 1.56 gpt Au, 101 gpt Ag; 2.00 m @ 4.23 gpt Au, 481 gpt Ag; 2.80 m @ 1.62 gpt Au, 106 gpt Ag at Soledad Level 2, 1.90 m @ 0.38 gpt Au, 17 gpt Ag; 1.80 m @ 0.83 gpt Au, 42 gpt Ag; 2.70 m @ 1.21 gpt Au, 56 gpt Ag at Soledad Level 3, 0.70 m @ 6.00 gpt Au, 76 gpt Ag at Leon vein and 2.00 m @ 2.10 gpt Au, 94 gpt Ag; 3.50 m @ 2.89 gpt Au, 180 gpt Ag; 2.00 m @ 0.94 gpt Au, 42 gpt Ag; 4.00 m @ 2.28 gpt Au, 78 gpt Ag at El Cometa underground workings.
Torex Gold Resources Inc. informed development and construction at Media Luna in Guerrero now stands at 87%. Detailed engineering is now complete “and procurement is nearing completion at 97%. Underground development/construction and surface construction are advancing, with completion levels at 77% and 70%, respectively.” First copper concentrate it scheduled to be produced on Q1 2025.

ON DEALS AND CORPORATE ISSUES

Minera Alamos Inc. entered into a definitive agreement to acquire all of the issued and outstanding shares of Sabre Gold Mines Corp., which owns the past producing Copperstone gold mine in Arizona. (Santana, Sonora).
Reyna Gold Corp. and Reyna Silver Corp. announced the completion of the previously announced acquisition of all the issued and outstanding common shares of Reyna Gold by Reyna Silver (La Gloria, Sonora; Guigui, Chihuahua).
Golden Minerals Co. signed a binding agreement to sell to Advance Metals Ltd. its Yoquivo project in Chihuahua. The agreement involves the payment of US$20 K on October 24, 2024, US$275 K on November 1, 2024 and US$275 K on November 21, 2024, for a total consideration of US$570 K plus VAT.
Pinnacle Silver and Gold Corp. singed a letter of intent (LOI) on a staged option to acquire the 1,074 ha El Potrero project in Durango. The property lies within 35 km of four operating mines, including Fresnillo plc’s La Cienega, Luca Mining’s Tahuehueto and Guanajuato Silver’s Topia. The property is said to host a low sulfidation epithermal breccia system in andesitic rocks of the Lower Volcanic Group, with an historic resource of 45.6 K tonnes @ 8 gpt Au, 186 gpt Ag. The property has never been explored by modern methods and a 100 tpd plant on site can be rehabilitated. The deal comprises US$50 K on signature, 500 K shares and the payment of US$160 K back taxes on the property; US$200 K and 1 M shares at eight months from signature; US$750 K in cash and 1 M in shares on the first anniversary; US$ 1 M and 1 M shares at 2.5 years from signature, or when a 350 K Oz Au inferred resource is established; US$ 1 M in cash at the fourth anniversary, or when the plant is ready and permitted to start production, with Pinnacle obtaining 50% of the property; US$ 1.5 M in cash on the fifth anniversary, or one year after commencing production, receiving a further 20% of the property; US$3 M after the seventh anniversary or two years after starting production, with Pinncale receiving a further 20% interest, to a total of 90%; The vendor has the option to convert the remaining 10% interest to a 2% NSR royalty. The total is US$7.5 M, US$160 K in back taxes and 3.5 M shares for a 100% interest subject to a 2% NSR royalty.
Silver Spruce Resources Inc. informed that its annual general meeting has been adjourned to the new date of November 5, 2024, as the 10% requisite quorum was not achieved on the October 29 meeting (Pino de Plata, Chihuahua).
Orogen Royalties Inc. held its annual general meeting (AGM) on October 29, 2024, with all matters approved (Ermitaño, Sonora).
Capitan Silver Corp. announced the appointment of Fernando Alanís Ortega to its board of directors. Fernando Alanís is a past CEO of Industrias Peñoles, one of Mexico’s most emblematic mining companies, and is also past president of the Mexican Mining Chamber known as CAMIMEX (Cruz de Plata, Durango).
Defiance Silver Corp. extended the San Acacio project (in Zacatecas) option agreement and acquired six additional mining concessions at its Tepal project in Michoacan. At San Acacio, the scheduled payment to be made in September 24, 2024, has now been changed to December 31, 2024.
Florida Canyon Gold Inc. received the final order of the Ontario Superior Court of Justice with respect to the pending arrangement transaction with Integra Resources Corp., the final substantive approval required prior to closing the arrangement, anticipated to occur in November and which includes the sale of Florida Canyon Mexican assets to Heliostar Metals Ltd. (La Colorada, Sonora).

ON SOCIAL RESPONSIBILITY

Vizsla Silver Corp. received the Socially Responsible Company Distinction (ESR) for the third year since 2022. The distinction is awarded jointly by the Mexican Center for Philanthropy (CEMEFI) and the Foundation for Sustainability and Equity (ALIARSE).

On the image below: Drilling under the scarp in Sonora. Picture by Jorge Cirett.

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

October 6, 2024October 6, 2024 / Gambusino Prospector / Leave a comment

By Jorge Cirett

During the 40^thweek of the year (September 30^th to October 6^th,2024), companies working in Mexico posted at least 12 press releases. One company informed on exploration advances on its property, one other company updated on mining operations, one company notified on the extension of a financing round, two companies granted stock options/deferred-share-units, two companies announced share consolidation programs, two companies reported drilling results on its advanced property/mine, another reported AGM results, one informed on appointments to the board and two more on their merger. ON MEXICO ISSUES, an illegal mining operation was terminated in Sonora. Vulcan Materials warned on the intensification of its legal dispute with the Mexican government. ON EXPLORATION, in Nayarit, Angel Wings Metals provided an exploration update on La Reyna project. ON MINING, Luca Mining updated on planned activities at its Campo Morado and Tahuehueto mines, in Guerrero and Durango respectively. ON RESOURCES AND DEVELOPMENT, Vizsla Silver reported drilling results from Panuco, in Sinaloa. Gatos Silver released drilling results from two areas of the Cerro Los Gatos mine in Chihuahua. ON DEALS AND CORPORATE ISSUES, Vizsla Silver presented results of its AGM. Apollo Silver made directors appointments. Coeur Mining and SilverCrest Metals announced their merger. ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUES

An illegal gold mining operation was closed down in Sonora. The mining operation was being conducted without permits on La Cienega area in the Sonoran Desert, which is an historically active dry placer mining area. Eight persons were detained and diverse equipment sequestered.
Vulcan Materials warned that it is to intensify its legal dispute with the government of Mexico, under which the company demands the payment of US$1.5 billion.

ON EXPLORATION

Angel Wing Metals Inc. provided an exploration update on La Reyna project, in Nayarit. The exploration focus is on the El Polo-Dolorosa target area, where historic trench results include 21 m grading 5.01 gpt Au, 12.7 m grading 1.21 gpt Au and 15.52 m grading 0.92 gpt Au. “Principal prospects include the former El Polo open pit mine, and the Dolorosa, San Ramon, La Feña, and El Zorillo shallow workings. The Company intends on commencing a diamond drill program in Q4 of this year”. Exploration is focused on bulk tonnage size potential in altered and brecciated volcanic rocks with stockwork quartz veining. The first 2,500 m drill phase is to test five widely spaced prospects from near surface depths to 175 m.

ON MINING

Luca Mining Corp. updated on planned activities at its two mines in Mexico. At Campo Morado, in Guerrero, a mining contractor was hired to increase performance and exceed 2,000 tpd rates, improvements to metallurgy processes have been made and the first drilling program in over a decade is commencing. At Tahuehueto, in Durango, construction has been completed and commercial production is expected to be declared during Q4. A significant drilling campaign is to commence during the quarter. “Luca will commence repayments of its debt owed to Trafigura, from cashflow, in October 2024 under the terms of the restructured debt agreement”.

ON FINANCING

Aztec Minerals Corp. granted 1.57 M stock options to directors, management, and consultants of the company (Cervantes, Sonora).
GRSilver Mining Ltd. granted 97.5 K deferred share units (DSU) to non-executive directors for director’s fees to Q3 2024. eligible persons in accordance with the Omnibus Long-Term Incentive Plan. “Once vested, each DSU entitles the holder thereof to receive either one common share of the Company, the cash equivalent of one common share or a combination of cash and common shares, as determined by the Company, net of applicable withholdings” (Plomosas, Sinaloa).
Silver Spruce Resources Inc. proposed to consolidate its common shares on a 1:15 basis on its annual and special meeting on October 29, 2024 (Pino de Plata, Chihuahua).
Apollo Silver Corp. announced a non-brokered private placement for aggregate gross proceeds of up to C$10 M. Following the closing of the offering, the company intends to consolidated its issued and outstanding shares on a five to one basis. (Cinco de Mayo, Chihuahua).
Colibri Resource Corp. announced the extension of its non-brokered private placement to raise up to C$450 K, to close on or before November 3, 2024 (EP project, Sonora)

ON RESOURCES AND DEVELOPMENT

Vizsla Silver Corp. reported results from 11 holes targeting the Copala resource area at its Panuco project in Sinaloa. Highlighted true width intercepts comprise 2.88 m @ 0.45 gpt Au, 92 gpt Ag; 1.46 m @ 15.47 gpt Au, 1,935 gpt Ag; 0.55 m @ 6.26 gpt Au, 437 gpt Ag; 2.30 m @ 37.30 gpt Au, 2,851 gpt Ag; (including 1.05 m @ 73.10 gpt Au, 5,410 gpt Ag); 1.70 m @ 1.35 gpt Au, 238 gpt Ag; 5.80 m @ 14.85 gpt Au, 2,551, gpt Ag (including 0.46 m @ 146.50 gpt Au, 21,953 gpt Ag); 2.30 m @ 0.98 gpt Au, 79 gpt Ag; 4.15 m @ 3.29 gpt Au, 732 gpt Ag (including 1.37 m @ 7.56 gpt Au, 1,634 gpt Ag); 5.65 m @ 26.06 gpt Au, 3,007 gpt Ag (including 1.48 m @ 96.11 gpt Au, 10,869 gpt Ag); 0.65 m @ 1.99 gpt Au, 384 gpt Ag; 7.50 m @ 1.23 gpt Au, 222 gpt Ag; 4.90 m @ 1.06 gpt Au, 145 gpt Ag; 1.00 m @ 5.39 gpt Au, 874 gpt Ag; 0.90 m @ 12.05 gpt Au, 1,830 gpt Ag; 4.35 m @ 3.00 gpt Au, 781 gpt Ag (including 0.73 m @ 12.45 gpt Au, 2,990 gpt Ag). “Exploration and resource focused drilling at Copala has traced mineralization along ~1,770 metres of strike length and ~400 metres down dip”.
Gatos Silver Inc. updated on the drilling exploration programs in the 70%-owned Los Gatos district in Chihuahua. Positive results have been obtained on the Central Deeps target and the South-East Deeps zone at the Cerro Los Gatos mine, as well as key developments on the regional exploration program. Highlighted true width intercepts comprise 7.5 m @ 0.20 gpt Au, 101 gpt Ag, 0.17% Cu, 5.5% Pb, 11.1% Zn; 3.3 m @ 0.28 gpt Au, 153 gpt Ag, 0.08% Cu, 6.6% Pb, 17.5% Zn; 2.8 m @ 0.03 gpt Au, 40 gpt Ag, 0.22% Cu, 0.7% Pb, 3.0% Zn; 1.3 m @ 0.57 gpt Au, 151 gpt Ag, 0.09% Cu, 3.0% Pb, 3.8% Zn; 6.5 m @ 0.04 gpt Au, 47 gpt Ag, 0.26% Cu, 1.1% Pb, 2.4% Zn; 4.5 m @ 0.09 gpt Au, 88 gpt Ag, 0.52% Cu,1.8% Pb, 3.2% Zn; 7.8 m @ 0.17 gpt Au, 90 gpt Ag, 0.14% Cu, 4.9% Pb, 5.8% Zn; 4.4 m @ 0.20 gpt Au, 55 gpt Ag, 0.37% Cu, 3.4% Pb, 1.6% Zn, 2.8 m @ 0.07 gpt Au,122 gpt Ag, 0.56% Cu, 3.4% Pb, 9.5% Zn; 5.0 m 0.14 gpt Au, @ 126 gpt Ag, 0.35% Cu, 5.5% Pb, 15.8% Zn; 1.1 m @ 2.03 gpt Au. Drilling below the Central Zone has intercepted a new zone of mineralization, and the “latest results in the South-East Deeps zone show further extension potential to the south-east of the current mineral reserves in this area. Moreover, we continue to pursue the longer term potential across the broader Los Gatos district”.

ON DEALS AND CORPORATE ISSUES

Vizsla Silver Corp. held its annual general meeting, fixing the number of directors at seven persons, elected the directors for the ensuing year, re-appointed the auditor of the company and approved the company’s omnibus equity incentive compensation plan. (Panuco, Sinaloa).
Apollo Silver Corp. announced the appointment of Alex Tsakumis to its board of directors and of Amandip Singh as vice president, corporate development (Cinco de Mayo, Chihuahua).
Coeur Mining Inc. and SilverCrest Metals Inc. entered into a definitive agreement in which Coeur is to acquire all issued and outstanding shares of SilverCrest. All SilverCrest shareholders will receive 1.6022 Coeur common shares. The exchange ratio implies $11.34 per SilverCrest shares, representing an 18% premium and a total equity value of $1.7 billion based on SilverCrest’s shares outstanding. “Upon completion of the Transaction, existing Coeur stockholders and SilverCrest shareholders will own approximately 63% and 37% of the outstanding common stock of the combined company, respectively” (Palmarjo, Chihuahua; Las Chispas, Sonora).

ON SOCIAL RESPONSIBILITY

No Relevant News.

On the image below: Drilling under the scarp in Sonora. Picture by Jorge Cirett.

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

September 29, 2024 / gambusinoprospectormexico / Leave a comment

Vuggy Silica

By Miguel A Heredia

During the 39^thweek of the year (September 23^rdto September 29^th 2024), at least 28 press releases were announced by companies working in Mexico, and 7 news published by the media, with nine disclosing deals and corporate issues, eight announcing financing rounds, eight commenting on Mexican issues, three reporting resources and development of their properties, three communicating production and financial results, three informing on exploration results, and one discussing social issues. ON MEXICO ISSUES, The marine exploration company Odyssey, in which Carlos Ancira had a shareholding, won to the Mexican government, a USD $37.1M arbitration within the NAFTA. Andrés Manuel López Obrador (AMLO)expropriated from Vulcan Materials a port and a quarry in Quintana Roo, which deepened tensions days before he leaves office. Andrés Manuel Lopez Obrador (AMLO), in a last surprise “play” before concluding his mandate fulfilled his warning and finally took control of a port and a quarry owned by the American company Vulcan Materials, with which maintains a dispute for several years now. AMLO concludes his government with the expropriation of the land and port of the Calica mine, property of the American company Vulcan Materials Company in Quintana Roo. Metal prices hit highs and boost mining companies in the stock market. Kootenay Silver reported the best drilling intercepts in Mexico on the fourth week of September, 2024. ON EXPLORATION, In Chihuahua, Kootenay released results from five drill holes at its Columba project, and Quetzal Copper reported completion of the phase one exploration and drilling program at it’s the Cristinas project. In Sinaloa, Prismo commenced a 1,250m drill program at its Palos Verdes project. ON MINING, Agnico Eagle announced that it willreport its Q3, 2024 results on October 30, 2024 (Pinos Altos mine, Chihuahua). Sierra Madre Gold and Silver announced that it has generated over USD $2.4M in revenues from its test mining and milling operations at the La Guitarra mine complex in the state of Mexico. ON FINANCING, Luca Mining announced the successful completion of its brokered private placement, raising a total of CAD $11.3M through a combination of 19,000,000 Listed Issuer Financing Exemption (LIFE) units and an increased non-brokered private placement of 6,126,167 units due to high demand (Campo Morado mine, Guerrero and Tahuehueto mine, Durango). Sonora Desert Copper amended its private placement financing (Cuatro Hermanos project, Sonora). Vizsla Silver announced the closing of over-allotment option in full (Panuco project, Sinaloa). VVC reported a 1-year extension for 57,567,800 Series AG share purchase warrants (Gloria project, Chihuahua). Sonoro Gold closed an over-subscribed non-brokered private placement for gross proceeds of CAD $875K (Cerro Caliche project, Sonora). Goldgroup closed a non-brokered private placement for gross proceeds of CAD$775K (Cerro Prieto mine, Sonora). Luca Mining announced that it closed its fully subscribed brokered private placement for gross proceeds of CAD $8.55M (Campo Morado mine, Guerrero, and Tahuehueto mine, Durango). Royalties Inc., closed a non-brokered private placement for gross proceeds of $105K (Bilbao project, Zacatecas). ON RESOURCES AND DEVELOPMENT, Starcore announced an increase of its Mineral Reserves and Mineral Resources for its San Martin mine in Queretaro as of April 30, 2024. Los Gatos Silver disclosed and updated Mineral Reserves Estimate and Mineral Resource Estimate for its Cerro Los Gatos mine in Chihuahua, and reported an updated mine of life plan. Southern Silver announced a 6,000m drill program at its Cerro Las Minitas project in Durango. ON DEALS AND CORPORATE ISSUES, Sandstorm Gold declared quarterly cash dividend for 2024 (Mercedes Mine, Sonora). Torex announced the appointment of a new member to its Board of Directors (El Limon-Guajes mine complex, Guerrero). (Vizsla Royalties granted stock options to directors, officers, employees, and consultants of the company (Panuco project, Sinaloa). Prime Mining announced the appointment of a new member to its Board of Directors (Los Reyes project, Sinaloa). Silver Storm provided a bi-weekly update on September 24, 2024, regarding its management cease trade order (MCTO) issued by the British Columbia Securities Commission (La Parrilla mine, Durango). Guanajuato Silver provided an update on the acquisition of El Cubo mine in Guanajuato from Endeavor Silver. Apollo Silver entered into an exploration, earn-in and option agreement with MAG Silver to acquire the Cinco de Mayo project in Chihuahua. Southern Silver granted incentive stock options to various directors, officers, and consultants (Cerro Las Minitas project, Durango). Florida Canyon provided an update on its Mexican transaction, which involves the sale of its interests in several mines to Heliostar Metals Ltd. ON SOCIAL RESPONSIBILITY, Vizsla Silver released its second annual sustainability report (Panuco project, Sinaloa).

ON MEXICO ISSUE

The marine exploration company Odyssey Marine Exploration, in which Carlos Ancira, the former president of Altos Hornos de México S.A.B. de C.V., had a shareholding, won an arbitration from the Mexican government protected by NAFTA/TW investor protection. The company was seeking damages in the amount of just over USD $2.3 B and what was finally achieved after the lawsuit was USD $37.1M. The former president of Altos Hornos bought a shareholding in Odyssey for USD $3M in 2015 through his investment vehicle´s Epsilon. The intention of Ancira and its partners was to dredge the seabed of the Gulf of Ulloa, Baja California, on the north Pacific Coast. To extract phosphate, an input used to manufacture fertilizers, a business to which the businessman was dedicated through its firm Agronitrogenados, sold at an extra cost to PEMEX, a scandal that kept the former president of the oil company Emilio Lozoya in jail. Unfortunately, it is a victory that Ancira could not savor, who in September 2021 sold his shareholding in Odyssey, in part to raise the money he promised as a reparation agreement to the Mexican government (in favor of PEMEX) for the Agronitrogenados operation, cause for which he was even detained in the North Prison of CDMX.
Andrés Manuel López Obrador (AMLO) expropriated from Vulcan Materials a port and a quarry in Quintana Roo, which deepened tensions days before he leaves office. The government of Mexico declared the land south of Cancun and Playa del Carmen as a protected natural area via decree in the Official Gazette of the Federation, this a few hours after US legislators sought to dissuade such a measure. Vulcan´s shares fell 1.03% to USD $249.73 during the morning of September 24, 2024. Vulcan had previously said the AMLO´s government actions are illegal and that it would add the latest measures to an ongoing arbitration case in the International Center for Settlement of Investment Disputes of the World Bank. It marks another movement by AMLO (a staunch nationalist) against private business. A new congress with a supermajority of Morena and allies in both chambers began its term last September and since then they have approved a reform of the Judiciary that has raised fear among capitals in Mexico. Claudia Sheinbaum, who will takes office on October 1, 2024 has not publicly commented on the Vulcan issue since her landslide victory, but a year ago said she hoped the company would accept AMLO´s offer to buy its land for MXP $6,500M. Last year, Vulcan sought intervention from Joe Biden administration against what it saw as the threat of a government takeover of the Riviera Maya property. It said that a valuation made by the Mexican government deeply undervalued the assets. On September 23, 2024, a bipartisan group of US senators proposed legislation to pressure Mexico to retract its expropriation plan. Vulcan is not the only foreign company that has sought legal recourse after government intervention. In December, Mexico took control of operations of a hydrogen processing plant owned by French industrial gases maker Air Liquid. Last year, AMLO announced plans to buy USD $6B worth of energy assets from Iberdrola after the Spain Company faced political hostility from Mexico that affected its permits and supply. AMLO also ordered the cancellation of projects including an airport and a brewery plan during his term. The US ambassador to Mexico, Ken Salazar, warned that companies may lose confidence in Mexico as an investment destination as a result of the judicial reform promoted by congress this month. The change eliminates a check on government power by making federal judges democratically elected, including in the Supreme Court of Justice of the Nation (SCJN).
Andrés Manuel Lopez Obrador (AMLO), in a last surprise “play” before concluding his mandate fulfilled his warning and finally took control of a port and a quarry owned by the American company Vulcan Materials, with which maintains a dispute for several years now. On September 23, 2024, the head of the executive published a declaration of a protected natural area of an area of more than 53,000 hectares south of Cancun and Playa del Carmen, where the land occupied by Vulcan and an open pit mine of the foreign company are located, dedicated to the extraction of limestone through its subsidiary Calizas Industriales del Carmen (Calica). Vulcan said in a statement that the expropriation of the land and port owned by the company is another escalation and constitutes a new violation of Mexico´s commitments under North American trade agreements, and added that this illegal measure will have a chilling and long-term effect on trade and investment relations between USA and Mexico.
AMLO concludes his government with the expropriation of the land and port of the Calica mine, property of the American company Vulcan Materials Company in Quintana Roo, involved in a conflict that has kept it without operations in Mexico for three years. The announcement of the expropriation is not a good sign to attract investment to Mexico and could damage business confidence. In the decree published last September 23, 2024 in the Official Gazette of the Federation, the Mexican government justifies its decision by citing the fourth article of the Constitution in its fifth paragraph, which establishes that “every person has the right to a healthy environment for their development and well-being, so the State will guarantee respect for this right.” Furthermore, it invokes article 27 of the Constitution in its third paragraph, which states that “the nation will at all times have the right to impose on private property the modalities dictated by the public interest.” The decree of the federal Executive declares a protected natural area the area located south of Cancun and Playa del Carmen, where the Vulcan lands are located under the Sac-Tun firm (formerly Calica). The measure is intended to prevent the construction company from extracting limestone from the land it owned for decades and which the AMLO government previously tried to acquire without success. The American company not only considers the expropriation of its investments in Quintana Roo illegal, but also warns of a direct conflict with provisions of the T-MEC. The reason is that the investment chapter of the Treaty between Mexico, the United States and Canada states that “no party shall expropriate or nationalize a covered investment, either directly or indirectly through equivalents to expropriation or nationalization,” except in the following cases: For reasons of public utility; in a non-discriminatory manner; through the payment of prompt, adequate and effective compensation, and in accordance with due legal process. The investment chapter contains provisions on expropriation and compensation, which must provide investors with certainty that their properties and positions will be respected, and guarantee non-discriminatory treatment and prompt, effective and adequate compensation, in cases where that their rights are substantially affected by the actions of the State. According to experts consulted, the Calica issue is very serious, since there are no precedents for similar cases since NAFTA. Although expropriation is not a good sign to attract investment to Mexico and can damage business confidence, this week two large American companies confirmed investment announcements in the country totaling USD $2.9 B.
Metal prices hit highs and boost mining companies in the stock market, with the price of silver rising to its highest level in almost 12 years, taking advantage of gold’s rally to all-time highs, as interest rate cuts from Major central banks fueled investment interest in precious metals. Silver futures rose 0.91% on the Chicago Stock Exchange, to USD $32.31 an ounce, after reaching their highest since December 2012, of USD $32.71. Spot gold rose 0.5% to USD $2,670.52 an ounce, having hit an all-time high of USD $2,685.42 earlier in the day. US gold futures for December delivery advanced 0.39% to USD $2,694.9. Copper prices rose to their highest level in nearly 16 weeks, boosted by hopes of firmer demand for metals after China announced fiscal stimulus measures following an easing of monetary policy to boost its sluggish economy. Three-month copper on the London Metal Exchange (LME) broke the psychological level of USD $10,000 per metric ton, touching the highest level since June 7. This Thursday it gained 3.53% to USD $10,084. The securities of the main mining companies operating in Mexico led the gains in Thursday’s session (September 24, 2024) on the Mexican Stock Exchange. The securities of Grupo México and Industrias Peñoles rose 4.18 and 4.23%, respectively. Shares of Grupo México, an industrial conglomerate with interests in the mining and rail transportation industries, are trading at MXP $112.68, their highest level since May 21, 2024. The shares of Industrias Peñoles were quoted at MXP $292.35, their highest level since April 19, 2024. Meanwhile, Fresnillo shares on the BMV rose 21.69%, while those listed in London advanced 2.74 %. With Thursday’s movement, Grupo México gained MXP $35,655M pesos in market capitalization, going from MXP $842,026M to MXP $877,681M in one day. Industrias Peñoles gained MXP $4,714M in market value, going from MXP $111,488M to MXP $116,202M.
Kootenay Silver Inc., reported the best drilling intercepts in Mexico on the fourth week of September, 2024. Details are shown in the table below:

ON EXPLORATION

Kootenay Silver Inc., released results from five drill holes at its Columba project in Chihuahua. The batch reported comprises two step-out holes and three “infill” holes designed to test a large gap in drilling on the D-Vein. Drilling continues to hit high grades of silver, over good widths and has now expanded the D-Vein strike length to 1,275 meters from 450 meters at the beginning of the program. Drilling highlights(true width reported) include holes CDH-24-165 with 739 g/t Ag, 0.3% Pb, and 1% Zn over 0.32m, plus 96 g/t Ag, 0.1% Pb, and 0.3% Zn over 18.18m, including 395 g/t Ag, 0.4% Pb, and 1.8% Zn over 2.37m, including 844 g/t Ag, 0.9% Pb, and 9.5% Zn over 0.37m; and hole CDH-24-166 with 176 g/t Ag, 0.1% Pb, and 0.4% Zn over 21.85m, including 1,020 g/t Ag, 1% Pb, and 2.5% Zn over 0.76m, plus 303 g/t Ag, 0.2% Pb, and 0.7% Zn over 6.87m, including 593 g/t Ag, 0.3% Pb, and 1.8% Zn over 1.91m, including 1,095 g/t Ag, 0.7% Pb, and 5.7% Zn over 0.40m.
Quetzal Copper Corp., reported completion of the phase one exploration and drilling program at it’s the Cristinas project in Chihuahua. Quetzal completed three drillholes and a downhole EM (electromagnetic) survey to follow-up on targets generated by surface mapping, sampling, and fixed loop EM surveys. “Each hole evaluated prospective conductors defined by the geophysical surveys. Unfortunately, the limited copper mineralization encountered does not justify further exploration at this time”.
Prismo Metals Inc., commenced a 1,250m drill program at its Palos Verdes project in Sinaloa. The goal is to explore the vein system to the west of the fault below the zone of bonanza grade intercepts from the previous campaigns.

ON MINING

Agnico Eagle Mines Limited announced that it willreport its Q3, 2024 results on October 30, 2024 after normal trading hours (Pinos Altos mine, Chihuahua).
Sierra Madre Gold and Silver Ltd., announced that it has generated over USD $2.4M in revenues from its test mining and milling operations at the La Guitarra mine complex in the state of Mexico, with an average daily production rate of 350 tonnes over the past 30 days. The test mining has been ongoing since June 25, 2024, processing a total of 27,990 tonnes of material. The company aims to increase production to 400 tonnes per day and eventually reach commercial production of 500 tonnes per day by the end of the year. The concentrate grades for silver and gold range from 2,752 g/t to 3,442 g/t Ag and 28.65 to 38.45 g/t Au.
Guanajuato Silver Company Ltd., announced that it produced over 3M Oz AgEq at its El Cubo mine in Guanajuato, triggering a USD $1M contingent payment to Endeavour Silver Corp. as part of the 2021 acquisition of El Cubo for USD $15M.

ON FINANCING

Luca Mining Corp., announced the successful completion of its brokered private placement, raising a total of CAD $11.3M through a combination of 19,000,000 Listed Issuer Financing Exemption (LIFE) units and an increased non-brokered private placement of 6,126,167 units due to high demand. Key investors include Term Oil Inc. and CEO Dan Barnholden. The funds will be used for ongoing improvements at the Campo Morado mine in Guerrero, exploration drilling at Campo Morado, Guerrero and Tahuehueto, Durango, and general corporate purposes. The financings are set to close on or about September 26, 2024, pending necessary approvals.
Sonora Desert Copper Corporation amended its private placement financing. It cancelled 1,700,000 of the $0.10 units issued, for a revised total of funds raised of $840,750 (was $1,010,750) and shares and warrants issued 8,407,500 (was 10,107,500). The company cancelled 1,700,000 common shares and 1,700,000 common share purchase warrants which had been issued to a subscriber who, subsequent to the closing, withdrew their subscription (Cuatro Hermanos project, Sonora).
Vizsla Silver Corp., announced the closing of over-allotment option in full, generating additional gross proceeds of CAD $9.75M. Net proceeds of the offering will be used to advance the exploration, drilling and development of the company’s Panuco project, as well as for working capital and general corporate purposes.
VVC Exploration Corporation reported a 1 year extension for 57,567,800 Series AG share purchase warrants, presently expiring on September 30, 2024. “The warrants, exercisable at $0.075 per share, were issued pursuant to a Private Placement in September 2020 with a 3-year expiry and were extended last September for an additional year. The warrants have been out-of-the-money for some time. If approved by the TSXV, the warrants will expire on September 30, 2025” (Gloria project, Chihuahua).
Sonoro Gold Corp., closed an over-subscribed non-brokered private placement of 17.5M units at a price of CAD $0.05 per unit for gross proceeds of CAD $875K. Net proceeds will be used to fund the ongoing development of its Cerro Caliche project in Sonora, and for general working capital purposes (Cerro Caliche project, Sonora).
Goldgroup Mining Inc., closed a non-brokered private placement of 15.5M units at a price of CAD $0.05 per unit for gross proceeds of CAD$775K. Net proceeds will be used to increase crushing capabilities from 2,250 tpd to 4,500 tpd at the Company’s Cerro Prieto heap leach gold mine in Sonora, and for general working capital requirements.
Luca Mining Corp., announced that it closed its fully subscribed brokered private placement for gross proceeds of CAD $8.55M by the issuance and sale of 19M units at a price of CAD $0.45 per unit. The funds will be used for ongoing improvements at the Campo Morado mine in Guerrero, exploration drilling at Campo Morado, Guerrero and Tahuehueto, Durango, and general corporate purposes.
Royalties Inc., closed a non-brokered private placement of 3M common shares at a price of $0.035 per share for gross proceeds of $105K. Funds will be used to cover overhead and Mexico expenses (Bilbao project, Zacatecas).

ON RESOURCES AND DEVELOPMENT

Starcore Mines International Ltd., announced an increase of its Mineral Reserves and Mineral Resources for its San Martin mine in Queretaro as of April 30, 2024. The updated mineral reserves and mineral resources estimates are reported net of the production from the San Martin property (see tables below):

Los Gatos Silver Inc., disclosed and updated Mineral Reserve Estimate and Mineral Resource Estimate for its Cerro Los Gatos mine (CLG) in Chihuahua. The company has 70% interest in the Los Gatos JV, which in turn owns the Cerro Los Gatos mine. Mineral Reserve and Mineral Resource by category with an effective day July 1, 2024 are summarized in the next tables:

The company also reported a strong free cash flow throughout the updated life of mine (LOM), with a mine life extended to the end of 2032, which adds two years of additional reserves and a 36% increase in AgEq production compared with the prior LOM plan; a low by-product AISC of $6.29 per Oz of payable of silver, and co-product AISC of $14.89 per Oz of payable silver equivalent; an average annual after-tax free cash flow of $80M, resulting in an after-tax NPV of $539M based on 2024 reserve price assumptions at a silver price of $23/Oz; an average annual after-tax free cash flow of $111M, resulting in an after-tax NPV5 of $760M, at a silver price of $30/Oz or an average annual after-tax free cash flow of $136M, resulting in an after-tax NPV5 of $935M, at a silver price of $35/Oz; and an average annual production over the LOM of 6.1M Oz Ag, 67M Lb Zn and 50M Lb Pb, or 12.9M Oz AgEq production.

Southern Silver Exploration Corp., announced a 6,000m drill program at its Cerro Las Minitas project in Durango. Goal of the drill program is to “demonstrate further lateral projections of shallow high-grade mineralization adjacent to planned mine and mill infrastructure in the area of the Eastern Deposits (South Skarn, Mina La Bocona and North Felsite), which also would provide additional tonnage for extraction early in any planned mining schedule. Further drilling beyond the 6,000m current program would test down-dip of the known eastern deposits which could further enhance the continued resource potential of the project”. The program is anticipated to commence in the coming weeks.

ON DEALS AND CORPORATE ISSUES

Sandstorm Gold Royalties declared quarterly cash dividend for 2024in the amount of $0.02per common share to shareholders of record as of the close of business on October 15, 2024. The dividend will be paid on October 25, 2024 (Mercedes Mine, Sonora).
Torex Gold Resources Inc., announced the appointment of a new member to its Board of Directors, effective October 1, 2024 (El Limon-Guajes mine complex, Guerrero).
Vizsla Royalties Corp., granted 1,961,000 stock options at an exercise price of $1.86 to directors, officers, employees, and consultants of the company. The Options are exercisable for a period of five years and will vest over the next two years (Panuco project, Sinaloa).
Prime Mining Corp., announced the appointment of a new member to its Board of Directors (Los Reyes project, Sinaloa).
Silver Storm Mining Ltd., provided a bi-weekly update on September 24, 2024, regarding its management cease trade order (MCTO) issued by the British Columbia Securities Commission. The MCTO was announced due to delays in filing the company’s annual financial statements and related documents for the fiscal year ending March 31, 2024, primarily caused by complexities in the acquisition of the La Parrilla assets in Durango. The company has until September 27, 2024, to complete its annual filings and expects to file interim filings shortly thereafter. The MCTO does not affect the ability of other shareholders to trade the company’s securities.
Guanajuato Silver Company Ltd., announced that in order to comply with the acquisition or El Cubo from Endeavour Silver Corp., for USD $15M, the transaction included contingent payment that would see Endeavour paid an additional USD $1M once 3M Oz AgEq had been produced at El Cubo. As part of the agreement, Guanajuato Silver can settle half of this payment with 2,753,265 common shares at CAD $0.245 each. Endeavour will settle the remaining balance with approximately 2,720,000 shares at CAD $0.25 each. Ocean Partners UK Limited will also accept shares for USD $1.8M in outstanding payments under the Gold Loan Credit Facility. All settlements are subject to TSX Venture Exchange approval and a four-month hold period.
Apollo Silver Corp., entered into an exploration, earn-in and option agreement with MAG Silver Corp., and its subsidiary Minera Pozo Seco S.A.de C.V. (MPS), to acquire the Cinco de Mayo project in Chihuahua. The agreement allows Apollo Silver to acquire MAG’s subsidiary, MPS, which owns the Project’s mineral concessions, contingent on obtaining necessary licenses and completing 20,000m of drilling within five years. The company will issue common shares to MAG equivalent to 19.9% upon exercising the option and will manage all exploration activities.
Southern Silver Exploration Corp., granted incentive stock options to various directors, officers, and consultants to purchase 6.5M common shares of the company at an exercise price of $0.31 per share, exercisable for a period of five years (Cerro Las Minitas project, Durango).
Florida Canyon Gold Inc., provided an update on its Mexican Transaction, which involves the sale of its interests in the San Agustin mine and El Castillo mine in Durango, La Colorada mine in Sonora, Cerro del Gallo project in Guanajuato, and San Antonio project in Baja California Sur to Heliostar Metals Ltd. The transaction is expected to close in Q4, 2024, pending necessary approvals, including from Mexico’s Federal Economic Competition Commission (COFECE). Additionally, Florida Canyon has filed management information circular for a special meeting on October 25, 2024, where shareholders will vote on a proposed arrangement with Integra Resources Corp., which aims to acquire all outstanding Florida Canyon shares at a specified exchange ratio. The completion of both the Mexican Transaction and the arrangement is subject to various approvals and customary closing conditions

ON SOCIAL RESPONSIBILITY

Vizsla Silver Corp., released its second annual sustainability report, highlighting the Company’s ongoing commitment to Environmental, Social and Governance (ESG) practices. The company cultivated approximately 4,000 native trees, accounting for 15 different species that will serve in future restoration activities; provided essential medical care to nearly 550 community members; invested nearly CAD $100K in the local community, bringing our cumulative total investment to over CAD $400K; and initiated the process of updating their social impact assessment and formalizing the Social Management Plan (Panuco project, Sinaloa).

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

On the picture above, core showing vuggy silica in a high-sulphidation epithermal system in a project in Jalisco, Mexico. Photo taken by Miguel A Heredia.

Vulcan, área natural protegida

September 28, 2024 / Gambusino Prospector / Leave a comment

Por: Marco A. Mares 24 de septiembre de 2024

El presidente Andrés Manuel López Obrador cumplió su promesa: declaró área natural protegida la planta de Vulcan Materials.

Por decreto crea una nueva área natural protegida, denominada Felipe Carrillo Puerto en Quintana Roo, con una extensión de más de 53 mil hectáreas que incluyen los terrenos de la mina Calica, propiedad de la empresa estadounidense Vulcan Materials, en Playa del Carmen.

El jefe del Ejecutivo lo anticipó desde mediados del año pasado. Advirtió que antes de que concluya su sexenio quedaría resuelto el tema legal con Calica a la que llegó a ofrecer entre 6 mil millones y 8 mil millones de pesos.

Se trata de un conflicto que inició en noviembre del 2018, es decir, poco antes del inicio del actual sexenio.

Bajo la actual administración, la empresa Sac-Tun ha rechazado las ofertas económicas del gobierno mexicano por considerar que representan un valor nominal alejado de la realidad.

Vulcan Materials mantiene una demanda en contra del gobierno de México, ante el Centro Internacional de Arreglo de Diferencias Relativas a Inversiones del Banco Mundial.

En un comunicado que difundió, Sac-Tun expresó: “estamos al tanto de la expropiación del puerto de Punta Venado y nuestra cantera Sac Tun cerca de Playa del Carmen, México, por parte del Presidente Andrés Manuel Lópezs Obrador.

La acción más reciente –declarar formalmente nuestros inmuebles y puerto como Área Natural Protegida (ANP)- es una parte más de una serie de amenazas y acciones de la actual administración contra nuestras operaciones, operaciones que son legales y cuentan con las autorizaciones necesarias en el país”.

La empresa sostiene que la expropiación de los terrenos y el puerto propiedad es otra escalada más y una nueva violación de los compromisos de México en el marco de los acuerdos comerciales de América del Norte, incluido el T-MEC y otros tratados de inversión aplicables.

Y advierte que esta medida ilegal tendrá un efecto paralizante y de largo plazo en las relaciones comerciales y de inversión entre los Estados Unidos y México.

Finalmente, anuncia que se defenderá empleando todas las vías jurídicas disponibles.

A 7 días de que termine su sexenio, el presidente de México toma una decisión que podría derivar en sanciones por parte del gobierno de Estados Unidos.

En horas previas a la publicación del decreto presidencial, senadores republicanos y demócratas de EU presentaron una iniciativa de ley para imponer sanciones a México si el presidente López Obrador concreta su amenaza de decretar las tierras de Vulcan, en reserva natural.

Previamente, desde el secretario de Estado de EU, Antony Blinken y varios senadores enviaron una carta a la secretaria de Relaciones Exteriores, Alicia Bárcena en la que advirtieron que de concretarse la confiscación de los terrenos de Vulcan harán todo los necesario para garantizar que ninguna entidad o individuo se beneficie del robo de esa propiedad.

El problema con Vulcan, se convirtió en una bomba de tiempo que hereda el primer mandatario al próximo gobierno, en la relación con el principal socio comercial de México. Veremos.

Favor de Continuar leyendo la nota en la fuente: https://www.eleconomista.com.mx/opinion/vulcan-area-natural-protegida-20240924-727088.html

Expropiación de Calica viola acuerdo comercial entre México y EU

September 28, 2024 / Gambusino Prospector / 1 Comment

Por Christopher Calderón septiembre 25, 2024

México expropió un puerto y una cantera propiedad de Vulcan Materials en Quintana Roo, luego de la publicación de un decreto en el Diario Oficial de la Federación (DOF) que declaró área natural protegida a la zona ubicada el sur de Cancún y Playa del Carmen, con lo que la empresa estadounidense no podrá extraer piedra caliza en la mina.

“Estamos al tanto de la expropiación del puerto de Punta Venado y nuestra cantera Sac Tun cerca de Playa del Carmen, México, por parte del presidente (…) esto es una parte más de una serie de amenazas y acciones de la actual administración contra nuestras operaciones, operaciones que son legales y cuentan con las autorizaciones necesarias en el país”, refirió la empresa.

“Esta medida ilegal tendrá un efecto paralizante en las relaciones comerciales e inversión entre los Estados Unidos y México. Este último acto nos priva del uso de nuestros terrenos y, por lo tanto, nos defenderemos empleando todas las vías jurídicas disponibles”, agregó la compañía, dirigida por Thomas Hill.

Favor de continuar leyendo la nota en la fuente: https://www.elfinanciero.com.mx/empresas/2024/09/25/expropiacion-de-calica-viola-acuerdo-comercial-entre-mexico-y-eu/

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

September 22, 2024September 22, 2024 / Gambusino Prospector / Leave a comment

By Jorge Cirett

During the 38th week of the year (September 16th to September 22nd, 2024), companies working in Mexico posted at least 15 press releases. Three companies informed on exploration advances on its properties, one company reported quarterly results, three companies notified on financing rounds, two companies granted stock options, one paid a loan facility, one commenced a drilling program on an advanced property, another announced appointments to the board and one more notified of its AGM results. ON MEXICO ISSUES, the Supreme Court is to review the case on the US$55 M fund paid by Grupo Mexico to unionized miners on the sale of the Cananea mine. ON EXPLORATION, in Sonora, Minaurum Gold released drilling results from its Alamos project. In Chihuahua, Radius Gold reported drilling results from Plata Verde. In Durango, Mithril Silver and Gold published results from drilling at Coplaquin. ON MINING, Starcore International Mines reported quarterly results. ON FINANCING, Vizsla Silver completed a bought deal public offering for C$65 M. Heliostar Metals granted stock options. GR Silver is increasing it private placement offering to $2.4 M. Orex Minerals granted incentive options. Sierra Madre Gold and Silver closed a private placement for US$500 K. Guanajuato Silver repaid a US$7.5 M loan facility to OCIM Metals & Minerals. ON RESOURCES AND DEVELOPMENT, Heliostar Metals commenced a 5,000 m drilling program at Ana Paula. ON DEALS AND CORPORATE ISSUES, Orex Minerals announced board changes. Santacruz Mining reported on its AGM. ON SOCIAL RESPONSIBILITY, Alamos Gold contributed to a health program and Mithril Gold and Silver on community support work.

ON MEXICO ISSUES

The Supreme Court is to review on October 9^th, 2024 the demand by workers of the Sindicato Nacional de Trabajadores Mineros, Metalúrgicos, Siderúrgicos y Similares de la República Méxicana (a miners Union) on the return of a US$55 M fund created in 2005 on the sale of the Cananea mine to Grupo Mexico. If successful, the Union and its leader Napoleón Gómez Urrutia would have to source the amount to the workers. At the time, the Union leader informed that the money was owned by the Union, and was not to be distributed among the workers.

ON EXPLORATION

Minaurum Gold Inc. released the results of the first five holes of the 2024 program intended to establish an initial mineral resource at its Alamos silver project in Sonora. These holes totaled 1,286 m on two fences across the Promontorio vein zone, which includes the Veta Grande, Veta del 100 and Veta Las Guijas veins. “The West Promontorio vein zone is an underexplored vein zone located 100 m west of the Veta del 100 that was intersected in the 2024 drill program. The Promontorio Sur is the faulted-off, down-dropped, and underexplored southern extension of the Las Guijas vein”. Highlighted core length intervals comprise 1.25 m @ 151 gpt Ag, 0.03 gpt Au, 0.91% Cu, 1.6% Pb, 0.6% Zn (or 309 gpt AgEq); 0.70 m @ 2,431 gpt Ag, 0.26 gpt Au, 1.29% Cu, 7.4% Pb, 6.1% Zn (or 2,976 gpt AgEq); 1.05 m @ 196 gpt Ag, 0.37 gpt Au, 0.47% Cu, 0.2% Pb, 1.9% Zn (or 342 gpt AgEq); 5.60 m @ 200 gpt Ag, 0.48 gpt Au, 0.35% Cu, 1.5% Pb, 1.6% Zn (or 368 gpt AgEq); 2.55 m @ 350 gpt Ag, 0.78 gpt Au, 0.52% Cu, 3.1% Pb, 2.2% Zn (or 621 gpt AgEq); 8.45 m @ 78 gpt Ag, 0.37 gpt Au, 0.24% Cu, 2.6% Pb, 4.1% Zn (including 1.75 m @ 211 gpt Ag, 0.61 gpt Au, 0.53% Cu, 7.4% Pb, 10.9% Zn).
Radius Gold Inc. reported final drill results by its partner Fresnillo plc for the Plata Verde silver project in Chihuahua. The drill program comprised 13 holes for a total of 2,400 m, intersecting several zones of low-grade Ag mineralization, but no zones of significant mineralization.
Mithril Silver and Gold Ltd. announced results from drilling at its Copalquin District project in Durango. Highlighted core length intervals comprise 33.00 m @ 31.8 gtp Au, 274 gpt Ag (including 7.00 m @ 144 gpt Au, 1,162 gpt Ag, which includes 2.00 m @ 495 gpt Au, 3,765 gpt Ag); 1.00 m @ 12.65 gpt Au, 13 gpt Ag; 2.45 m @ 0.87 gpt Au, 53 gpt Ag; 9.60 m @ 0.23 gpt Au, 7 gpt Ag. The company also completed a 70 square Km LIDAR survey covering the project area, identifying a number of previously unknown mine workings.

ON MINING

Starcore International Mines Ltd. reported results for Q1, ended July 31, 2024. At San Martin, in Queretaro, Starcore milled 49.5 K tonnes grading 1.92 gpt Au, 20 gpt Ag, recovering 85.2% Au, 56.9% Ag, to produce 2,600 Oz Au, 18.3 K Oz Ag (or 2.8 K Oz AuEq) at cash cost US$1,608 per Oz AuEq.

ON FINANCING

Vizsla Silver Corp. completed the previously announced bought deal public offering for aggregate gross proceeds of C$65 M. The offering was led by Canaccord Genuity as sole bookrunner on behalf of itself and a syndicate of underwriters, including CIBC Capital Markets, Ventum Financial Corp., Raymond James Ltd., Stifel Nicolaus Canada Inc., National Bank Financial Inc., and BMO Capital Market (Panuco, Sinaloa).
Heliostar Metals Ltd. granted 4.67 M stock options and 1.18 M restricted share units to directors, officers, employees and consultants. Heliostar also entered into two advisory agreements with TSCG Capital Group and 3L Capital Inc. for financial advisory services (Ana Paula, Guerrero).
GRSilver Mining Ltd. is increasing its private placement offering to $2.4 M in gross proceeds (Plomosas, Sinaloa).
Orex Minerals Inc. granted 909 K incentive stock options to directors and officers. (Coneto, Durango).
Sierra Madre Gold and Silver Ltd. closed its previously announced non-brokered private placement for aggregate gross proceeds of US$500 K (La Guitarra, Estado de Mexico).
Guanajuato Silver Corp. announced the complete repayment of its US$7.5 M Ag and Au pre-payment facility to Swiss-based OCIM Metals & Mining S.A., leaving the gold loan credit facility with Ocean Partners UK Ltd. as the only loan outstanding. This “facility is repayable in equal fixed monthly installments of gold totalling approximately 338 troy ounces per month for a period of 30 months which commenced in June 2024. Notably, Guanajuato Silver averaged monthly production of over 1600 ounces of gold and over 137,000 ounces of silver during the first half of 2024” (El Cubo, Guanajuato).

ON RESOURCES AND DEVELOPMENT

Heliostar Metals Ltd. commenced a 5,000 m diamond drill program at Ana Paula, in Guerrero. The 2,600 m seven holes Phase 1 program focus on extending the High Grade Panel and Parallel Panel to the west, testing also the downdip extension of the High Grade Panel. Phase 2 consists of eight holes totaling 2,400 m, targeting the eastern and western extensions of the High Grade Panel.

ON DEALS AND CORPORATE ISSUES

Orex Minerals Inc. announced the resignation of Ben Whiting as President, CEO and Director of the company, and of Art Freeze as director. Later during the week Orex announced the appointment of John Eren as CEO and member of the board, and the appointment of Chris Beltgens as a member of the board (Coneto, Durango).
Santacruz Silver Mining Ltd. reported that all matters were approved at the company’s AGM held on September 16, 2024 (Zimapan, Hidalgo).

ON SOCIAL RESPONSIBILITY

Alamos Gold Inc. announced a significant contribution to The Princess Margaret Cancer Foundation to create the new Alamos Gold Chair in Gastrointestinal Surgical Oncology.
Mithril Gold and Silver Ltd. stated that part of its ESG commitment includes “the municipal access road, connecting to the township of El Durazno 12 km east of the Copalquin District, with support for the municipal upgrade works scheduled for commencement in Q3 2024.

On the image below: Chloritized porphyritic diorite, HQ core. Picture by Jorge Cirett.

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Vulcan, área natural protegida

Expropiación de Calica viola acuerdo comercial entre México y EU