Highlights on the Fourth Week of January, 2018. Mining and Exploration News in Mexico

By Jorge Cirett

During the 4th week of the year (January 22nd to January 28th, 2018), at least 20 press releases were announced by companies working in Mexico, with two reporting their Q4 and full year 2017 results. ON MEXICO ISSUES, no relevant news. ON EXPLORATION, In Sonora, Minaurum released drill results from its Alamos silver project, including one high-grade intercept over 8 m with grades as those mined in the past; Aztec Minerals is awaiting results from five drill holes at its Cervantes property; Silvercrest Metals presented an annual review on work done at its Las Chispas project. In Chihuahua, Sable Resources announced its intention to drill the Margarita project; Mammoth Resources released good gold results from its first two holes on the Tenoriba project. In Hidalgo,  Prospero Silver and Fortuna Silver are to drill the Pachuca SE project. ON MINING, Two companies, Excellon and Gold Resource presented Q4 and annual production results for 2017. Endeavour issued production and cost guidance for 2018. ON FINANCING, Torex Gold filed a short form base shelf prospectus with the Securities Commissions to make offerings of up to $500 M of shares, debt securities, subscription receipts and units. First Majestic announced the offering of US$150 M of unsecured convertible senior notes due 2023. ON RESOURCES AND DEVELOPMENT, Mexican Gold released drill results that increase mineralization extent on the dike zone at its Las Minas project in Veracruz. Kootenay Silver released drill results on La Cigarra project in Chihuahua, with favorable results on La Borracha zone. Santacruz Silver initiated drilling at Veta Grande in Zacatecas. Bacanora Minerals filed the FS on its Sonora Lithium project in Sonora. ON DEALS AND CORPORATE ISSUES, Leagold (Los Filos, Guerrero) intends to acquire Briogold, with operations In Brazil. Sonoro Metals optioned the Cerro Caliche project in Sonora. Orex Minerals optioned the San Luis del Cordero project in Durango, from Exploraciones del Altiplano.

ON MEXICO ISSUES

  • No relevant news

ON EXPLORATION

  • Minaurum Gold Inc. released results from its on-going drill program at its Alamos silver project in Sonora. The first hole ever drilled in the Europa-Guadalupe vein system intersected 8.25 m (core length) @ 1,760 g/t Ag (57 opt), 1.6% Cu, 1.5% Pb, 2.6% Zn. Other results comprise 16.75 m @ 0.13% Cu; 0.5 m @ 0.92% Cu, 0.1% Pb, 0.18% Zn; 1.2 m @ 541 g/t Ag, 0.28% Cu, 0.44% Pb, 0.88% Zn; 3.05 m @ 0.19% Cu; 0.35 m @ 185 g/t Ag, 1.05% Cu, 2.37% Pb, 1.44% Zn; 9.60 m @ 88 g/t Ag, 0.24% Cu, 0.37% Pb, 0.33% Zn (including 2.65 m @ 147 g/t Ag, 0.25% Cu, 0.21% Pb, 0.28% Zn).
  • Sable Resources Ltd. announced its intention to conduct a two-phase drill program on the 1.7 km long structure at its Margarita project in Chihuahua. Twenty nine out of forty four surface samples collected returned over 100 g/t Ag, peaking at 909 g/t Ag, with high anomalies in gold, lead, zinc, arsenic and antimony. The 125 has property is surrounded by Sunshine’s Los Gatos project, same that hosts a 178 M AgEq Oz resource (which is under development). The initial drill program will consist of a two-phase, 11 diamond drill hole program totaling 4,025 m to test the vein structures at depths between 200 and 400 m. Considering the silica textures on the veins, the company believes they are at the upper levels of an epithermal system.
  • Aztec Minerals Corp. announced it expects to receive the assays for the first five holes drilled at the Cervantes Au-Cu porphyry property in Sonora. These five holes were drilled in December, and part of the 3,000 m, 14 to 17 holes, phase 1 drill program that is currently underway.
  • Mammoth Resources Corp. released results from the first two holes drilled by the company at its Tenoriba project in Chihuahua. The El Moreno area is 1.4 km west from previously drilled holes, with two drill holes completed of three planned. Results comprise (core length intervals) 30.0 m @ 0.77 g/t Au (including 5.9 m @ 3.41 g/t Au); 80.0 m @ 0.17 g/t Au (including (9.0 m @ 0.51 g/t Au; 15.5 m @ 0.35 g/t Au). The presence of a feldspar porphyry moderately to weakly silicified and argillitized, which is locally strongly silicified and bearing a strong pyrite (up to 15%) and tourmaline (up to 10%) content in one hole is regarded as an indication of a good high sulfidation system, as well as the identification of dickite, kaolinite and illite in the other hole.
  • Prospero Silver Corp. has begun drilling at its Pachuca SE project in Hidalgo. The drilling is to be conducted under the terms of a strategic investment with Fortuna Silver Mines Ltd. A three to four drill hole, 1,800 m program is planned to test two targets in the 7,250 has land package. Epithermal style argillic alteration is associated with anomalous Au-Ag-Zn geochemistry into an andesitic and felsic volcanic pile. The first hole is to test an actively mined clay pit on a structurally controlled illite alteration zone.
  • Silvercrest Metals Inc. presented a summary of 2017 exploration results at its Las Chispas property in Sonora. During 2017 the company drilled 32,822 m in 125 holes, bringing the total to 41,418 m in 157 holes. To date nine of nineteen epithermal veins have been drilled. The most remarkable is the Babicanora vein, with an estimated width of 3.0 to 3.5 m, a high grade footprint of over 1.0 km and a precious metal zone of 125 to 175 m high, with the vein remaining open along strike and to depth. The best hole in this vein intersected 3.1 m @ 40.4 g/t Au, 5,375 g/t Ag. Other veins with high grade intercepts include the Babicanora Footwall, La Blanquita, Las Chispas, Granaditas, Amethyst and Tajo Chico. Initial metallurgical test have indicated recoveries of 98.9% Au and 86.6% Ag. Securing land access has included the purchase of a 2,500 has. ranch and 20 year lease contracts. For 2018 the company is planning to release a maiden resource estimate on the first quarter, with ore from the Babicanora, Babicanora FW, Giovanni, Las Chispas and William Tell veins, and from the old dumps. Further drilling will continue to focus on the 3.2 km long Babicanora vein, extending to the SE and to depth; other areas of drilling will include the Amethyst, Babi Sur, La Victoria and Las Chispas vein extensions. During the first half of 2018 Silvercrest plans to drill an additional 10,000 to 15,000 m, focusing on a planned updated resource and completed PEA in the second half of the year.

ON MINING

  • Excellon Resources Inc. announced fourth quarter and annual 2017 production results from its Platosa mine in Durango. During the quarter 16,114 tonnes were mined and 17,978 tonnes were milled @ 424 g/t Ag, 3.81% Pb, 5.81% Zn, recovering 90.3% Ag, 80.0% Pb, 82.2% Zn to produce 223.3 K Oz Ag, 1.2 M Lb Pb, 1.9 M Lb Zn. During the year 57,165 tonnes were mined and 63,742 tonnes were milled @ 393 g/t Ag, 3.75% Pb, 5.3% Zn, recovering 89.3% Ag, 80.9% Pb, 81.4% Zn to produce 718.5 K Oz Ag, 4.24 M Lb Pb, 6.06 M Lb Zn. The company has removed a major bottleneck by improving dry-mine conditions and is now working to achieve a 300 tonnes per day (tpd) production rate. A second tailings management facility has been commissioned in Miguel Auza, Zacatecas, with 19 years of capacity at the planned 300 tpd rate.
  • Gold Resource Corp. released Q4 and annual 2017 results for its Oaxaca mining unit (El Aguila, Arista mines). During the fourth quarter 9,209 Oz Au and 555.5 K Oz Ag were produced, while on a yearly basis 28,117 Oz Au, 1.77 M Oz Ag, 1,141 tonnes Cu, 5,365 tonnes Pb, 16,301 tonnes Zn. The company expects to begin first stoping operations on the Switchback mine (500 m from the Arista mine) on the first quarter of 2018.
  • Endeavour Silver Corp. issued the 2018 production and cost guidance for its three mines in Mexico. Cash cost net of Au by-product credits are expected to be $6.00-$7.00 per Oz Ag, while consolidated cash costs on a co-product basis are anticipated to be $10.00 – $11.00 per Oz Ag and $750-$800 per Oz Au. All-in sustaining costs (AISC) net of gold by-product credits is estimated to be $15.00-$16.00 per Ag Oz. Endeavour plans to invest $48.4 M on capital projects, including $7.3 M in the construction of the El Compas mine in Zacatecas. The company plans to drill 44,000 m and spend $11.1 M on brownfield and greenfield exploration.Endeavour production guidance 20181

ON FINANCING

  • Torex Gold Resources Inc. announced the filing of a final short form base shelf prospectus with the Securities Commissions (except Québec). The base shelf prospectus will allow Torex to make offerings of up to $500 M of shares, debt securities, subscription receipts and units. The company filed this base shelf prospectus to maintain financial flexibility but has no immediate intentions to undertake an offering.
  • First Majestic Silver Corp. announced the offering of US$150 M aggregate principal amount of unsecured convertible senior notes due 2023 pursuant to private placement exemptions. First Majestic “intends to use the net proceeds of the offering to fund certain costs and expenses associated with the recently announced acquisition of Primero Mining Corp. and ….. The notes will bear cash interest semi-annually at a rate of 1.875% per annum. The initial conversion rate for the Notes will be 104.3297 common shares (“shares”) per U$1,000 principal amount of Notes…”

ON RESOURCES AND DEVELOPMENT

  • Mexican Gold Corp. announced positive drill results extending the dike mineralized zone at its Las Minas property in Veracruz. Drilling to date has outlined mineralization (locally high-grade) along strike for 360 m on the west contact and for 140 m on the east contact, remaining open along strike. Significant core length results comprise 32.3 m @ 0.91 g/t Au, 0.85% Cu (including 4.3 m @ 3.55 g/t Au, 3.74% Cu); 10.0 m @ 0.60 g/t Au, 0.66% Cu (including 4.0 m @ 1.18 g/t Au, 1.3% Cu); 6.0 m @ 0.44 g/t Au, 0.71% Cu; 10.2 m @ 1.90 g/t Au, 1.61% Cu; 18.0 m @ 3.91 g/t Au, 2.36% Cu; 36.0 m @ 2.86 g/t Au, 1.16% Cu; 18.0 m @ 1.57 g/t Au, 0.32% Cu; 10.0 m @ 2.68 g/t Au, 0.79% Cu (including 4.0 m @ 5.87 g/t Au, 1.21% Cu); 10 m @ 0.83 g/t Au, 0.25% Cu; 4.0 m @ 3.48 g/t Au, 0.05% Cu.
  • Kootenay Silver Inc. released the results of the remaining nine core holes of the 2017 drill program at La Cigarra, in Chihuahua. Holes at La Navidad and Las Venadas intersected wide low grade intercepts, as 46 m @ 12 g/t Ag (including 16 m @ 20 g/t Ag); 73 m @ 14 g/t Ag (including 18.5 m @ 21 g/t Ag); 29 m @ 18 g/t Ag. At La Borracha higher grade intercept’s comprise 15 m @ 42 g/t Ag; 31 m @ 46 g/t Ag (including 8 m @ 107 g/t Ag). La Borracha zone has seen limited amounts of drilling is about 500 m from the current resource and can be traced for at least 1,100 m.
  • Santacruz Silver Mining Ltd. reported that Carrizal Mining S.A. de C.V. has initiated a 6,000 m drilling campaign at the Veta Grande project in Zacatecas. The 15 hole campaign is to focus on the Veta Grande vein at depth below the current level being mined, expecting to intersect the parallel La Flor, San Jose and Armados veins.
  • Bacanora Minerals Ltd. filed on SEDAR the feasibility study (FS) for the Sonora lithium project in Sonora. The study confirms the positive economics of a 35,000 tonnes per annum battery grade Li2CO3 (lithium carbonate) operation, estimating a pre-tax net present value (NPV) of US$1.253 billion at an 8% discount rate and an internal rate of return (IRR) of 26.1%, and life of mine (LOM) of 19 years at operating costs of US$3,910/t of lithium carbonate, estimated on a flat US$11,000/t price over LOM. Measured resources amount to 103 Mt @ 3,480 ppm Li, indicated resources to 188 Mt @ 3,120 ppm Li and 268 Mt @ 2,650 ppm Li as indicated resources.
  • Great Panther Silver Ltd. updated its mineral resource estimate for the Guanajuato mine Complex in Guanajuato. The new estimate covers the operating San Ignacio and Guanajuato mines, comprising 1.21 M tonnes @ 156 g/t Ag, 2.74 g/t Au as measured and indicated resources hosting 6.16 M Oz Ag, 107,070 Oz Au; and 732.3 K tonnes @ 131 g/t Ag, 2.35 g/t Au as inferred resources hosting 3.09 M Oz Ag, 55,343 Oz Au.

ON DEALS AND CORPORATE ISSUES

  • Leagold Mining Corp. announced its intention to make an offer to acquire all shares of Brio Gold Inc. on or before February 28, 2018. “The all-stock offer results in Brio shareholders owning approximately 42% of the combined company. The combined operations are expected to produce approximately 450,000 ounces in 2018”. This combination reduces overall business risk for Leagold by having four operating mines in Mexico and Brazil (Los Filos-Bermejal, Guerrero).
  • Sonoro Metals Corp. entered into an option agreement with a resident of Hermosillo to acquire 100% interest in the Cerro Caliche group of properties in Sonora. Cerro Caliche consists of ten concessions over 900 has, and has 10,118 m in 101 holes of previous drilling by Cambior Gold Corp. and Corex Gold Corp. Total consideration for the property is US$2.98 M payable in escalating cash installments over 72 months, with the initial first year installment of US$127 K having been completed. In addition Sonoro has paid US$23 K of outstanding mining duties. The vendor is to retain a 2% NSR, with Sonoro having an option to purchase the NSR at any time for US$1 M for each percent point.
  • Orex Minerals Inc. entered into an option agreement with Exploraciones del Altiplano S.A. de C.V. to acquire a 100% interest in the San Luis del Cordero project in Durango. Orex is required to make the following annual cash and share payments to Altiplano. On signing, issue 100 K Orex shares and pay US$100 K; on the first anniversary, issue 200 K shares and pay US$150 K; on the second anniversary, issue 300 K shares and pay US$200 K; on the third anniversary, issue 400 K shares and pay US$550 K; on the fourth anniversary, pay $US1.5 M (of which 30% can be issued in Orex shares). Orex also will have to satisfy work commitments of US$400 K and US$600 K in years 1 and 2. The property extends over 2,825 has, where old mine workings and mineralized showings wrap around a quartz-feldspar porphyry intrusive. Approximately 16,400 m were drilled in 62 holes from year 2000 to year 2016.

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 below, banded epithermal quartz vein from the famous El Oro mining district in Estado de Mexico. Photo by Jorge Cirett.

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Highlights on the Third Week of January, 2018. Mining and Exploration News in Mexico

By Miguel A Heredia

During the 3rd week of the year (January 15th to January 21st, 2018), 20 press releases were announced by companies working in Mexico, most of them reporting their Q4 and full year 2017 results. ON MEXICO ISSUES, no relevant news. ON EXPLORATION, In Sinaloa, Auxico reported encouraging sampling results from the Aguamas area at its Zamora project, and Marlin Gold announced positive drill results from the Colinas target area at its La Trinidad Mine,  awaiting drill results for five additional holes from this area. In Sonora, Azure released drill results at its Oposura project, where near-surface, high-grade zinc-lead mineralization has been intersected, and Oceanus Resources reported the 2017 fall exploration drill results from its El Tigre project, and announced its intention to continue locating and defining other high-grade vein systems on the property.  In Jalisco, Evrim Resources announced trenching results from its Cuale project, where high-sulfidation mineralization has been identified. ON MINING, Nine companies: McEwen, Goldcorp, Avino, Argonaut, New Gold, Premier Gold, Fortuna Silver, Sierra Metals and Leagold presented Q4 and annual production results for 2017, and announced 2018 production and cost guidance. ON FINANCING, Orla Mining settled debt with shares to certain creditors. SilverCrest closed a non-brokered private placement for $749,988. ON RESOURCES AND DEVELOPMENT, Torex Gold announced maiden Sub-Sill mineral reserves for 180K Oz Au and 180K Oz Ag and updated its mineral resource estimate on El Limón-Guajes Mine Complex in Guerrero to over 3.9 M Oz Au and 6.1 M Oz Ag and mineral reserves estimate to 3.0 M Oz Au and 4.3 M Oz Ag. ON DEALS AND CORPORATE ISSUES, Tonogold Resources entered into an option agreement with a private Mexican company to acquire Claudia, Promontorio and Montoros gold-silver properties in Durango. Galore Resources entered into a 5-year agreement with a private Mexican company to begin mining Los Gemelos property in Zacatecas state.

ON MEXICO ISSUES

  • No relevant news

ON EXPLORATION

  • Auxico Resources Canada Inc. provided results from an exploration campaign carried out on the Aguamas area at its Zamora project in Sinaloa. The Aguamas area contains brecciated material with quartz veins and stockworks carrying gold and silver values over an area of 150 m long and 70 m wide. Trenching sampling and grabs samples collected near old adits returned encouraging gold and silver values. Trench sampling results include 50m of 0.85 g/ Au, including 3m of 13.07 g/t Au; 14.4m of 0.79 g/t Au, including 2.9m of 3.44 g/t Au. Grab samples results include 34.05 g/t Au & 99 g/t Ag, and 14.87 g/t Au & 292 g/t Ag. Auxico plans to conduct a diamond drilling program at Aguamas as well as carry out more detail exploration work in the entire property which contains brecciated material over a strike length of 8 km across the Zamora project to evaluate its potential.
  • Marlin Gold Mining Ltd. announced positive drill results from the Colinas target area, less than 1 km from the Taunus pit within its La Trinidad Mine. The drilling tested a low angle faulted vein zone interpreted to be a thrust fault which has been identified over a strike of approximately 180 m and a dip of approximately 40 m. This target is amenable to open pit mining. Three holes returned grades of 2.66, 8.42, and 7.17 g/t Au, respectively over a true width that varies from 2.37-3.65 m, and a single hole intersected 18.35m of 0.44 g/t Au. Marlin is awaiting drill results of five additional holes drilled on this target area.
  • Azure Minerals Limited continued intersecting near-surface, high-grade Zn-Pb mineralization at its flagship Oposura project in Sonora. Drilling results include 2.0m @ 21.33% Pb and 21.23% Zn from 37.5m; 2.9m @ 9.68% Pb and 6.45% Zn from 18.9m; 2.1m @ 9.14% Pb and 6.24% Zn from 27.9m, and 2.2m @ 8.73% Pb and 5.47% Zn from 15.2m. The latest round of drill results has extended the high-grade mineralized zone to the south and west of previously reported near-surface, high-grade mineralisation in the East Zone. Mineralization remains open and drilling is planned for this area. Azure plans to deliver an initial mineral resource estimate by April 2018.
  • Oceanus Resources Corporation reported drill results from the 2017 fall program at its El Tigre project in Sonora, which consisted of 600m to define the strike and dip of the high-grade Caleigh vein and the low-grade alteration zone in the hanging wall. Significant drill intersections include 0.75m @ 91 g/t Au & 2,830 g/t Ag from 28.50 to 29.25 m depth, and 0.50m @ 10.0 g/t Au & 2,247 g/t Ag. Oceanus announced its intention to continue locating and defining other high-grade vein systems on the property and plans, for the first time, to explore with mapping and geochemical sampling over a distance of 5 km to the south between Golden Hill and Lluvia de Oro prospects.
  • Evrim Resources Corp. released the first trenching results from the La Gloria high sulfidation prospect within its Cuale project in Jalisco. Three trenches dug over a distance of 600m were sampled and returned results of 25.4 m @ 0.53 g/t Au; 9.4 m @ 7.4 g/t Au, and 20m @ 0.61 g/t Au. Evrim is planning a follow-up program that includes more trenching and geophysics.

ON MINING

  • McEwen Mining Inc. announced fourth quarter and annual production in 2017 from its El Gallo Mine in Sinaloa, where 19,893 Au Eq. Oz were produced in the fourth quarter for a total annual production of 46,694 Au Eq. Oz during 2017.
  • Goldcorp Inc. reported its preliminary gold production for the fourth quarter and full year 2017 of 646,000 Oz Au and 2’569,000 Oz Au respectively. No figures for its Mexican operations were released. Goldcorp also informed about its complete production and cost guidance to 2021 on their mines and projects.
  • Avino Silver & Gold Mines Ltd. Informed about its fourth quarter and full year 2017 production. At Avino Mine, in Durango, 109,088 tonnes were milled @ 50 g/t Ag, 0.32 g/t Au and 0.52 % Cu with a recovery rate of 87% Ag, 69% Au and 88% Cu to produce over 320K Oz Ag, 1,472 Oz Au and 1.1 M lb Cu. During the full year, 460,890 tonnes were milled @ 64 g/t Ag, 0.52 g/t Au and 0.48 % Cu with recovery rates of 85% Ag, 69% Au and 89% Cu to produce over 1.4MOz Ag, 7,355 Oz Au and 4.4 M Lb Cu. At San Gonzalo Mine, 20,467 tonnes were milled @ 290 g/t Ag and 1.36 g/t Au with a recovery rate of 87% Ag and 77% Au to produce over166.7K Oz Ag and 69 Oz Au. During the full year, 81,045 tonnes were milled @ 269 g/t Ag and 1.32 g/t Au with a recovery rate of 84% Ag and 78% Au to produce over 591K Oz Ag and 2,675 Oz Au.
  • Argonaut Gold Inc. reported fourth quarter and full year 2017 production from its Mexican operations. At El Castillo Mine Complex in Durango (El Castillo & San Agustín Mines), a total of 19,653 Oz Eq. Au (GEOs) were produced including 8,707 GEOs from El Castillo Mine and 10,946 GEOs from San Agustin Mine. La Colorada Mine in Sonora produced in the fourth quarter 15,334 GEOs. During the full year, 73,418 GEOs were produced at El Castillo Mine Complex and 53,286 GEOs from La Colorada Mine. Argonaut also provided 2018 cost guidance and three-year production outlook and plans to invest $50-$55 M USD in capital expenditures during 2018. The company also announced the hiring of Brian Arkel as VP Exploration.
  • New Gold Inc. announced fourth quarter and full year 2017 production from its Cerro San Pedro Mine in San Luis Potosi, which finished active mining during the second quarter of 2016 and transitioned to residual leaching. During the fourth quarter, 7,177 Oz Au and 100K Oz Ag were produced for a full year 2017 of 34.3K Oz Au and 600K Oz Ag produced. New Gold also provided Production and Cost Guidance for 2018.
  • Premier Gold Mines Limited Mercedes Mine in Sonora produced during the fourth quarter of 2017 over20K Oz Au and 77K Oz Ag for a full year 2017 production of 82.5K Oz Au and 338K Oz Ag. Premier announced that < 45K m of drilling was completed and a revised mineral resource and reserves estimate is planned to release in February 2018. Premier provided a consolidated production and cost guidance for 2018.
  • Fortuna Silver The San Jose Mine in Oaxaca produced over 2M Oz Ag and 15K Oz Au in the fourth quarter of 2017 from 271,370 tonnes with average grades of 259 g/t Ag and 1.89 g/t Au and recovery rates of 91.86% Ag and 91.82 % Au respectively. Silver and gold production for 2017 totalized  5 M Oz Ag and 55.5K Oz Au from 1.1 M tonnes with average grades of 238 g/t Ag and 1.77 g/t Au and recovery grades of 91.82% and 91.62% respectively. Fortuna issued guidance for 2018 for its San Jose Mine in Oaxaca.
  • Sierra Metals Inc. announced fourth quarter and full year 2017 production of its Bolivar and Cusi Mines in Chihuahua. The Bolivar Mine processed in the fourth quarter 226,980 tonnes @94% Cu, 14.67 g/t Ag and 0.16 g/t Au with recovery rates of 83.3% Cu, 80.42%Ag and 55.62% Au to produce over 3.9M lb Cu, 84K Oz Ag and 791 Oz Au. During the full year, Bolivar Mine processed 887,237 tonnes @ 0.96% Cu, 14.93 g/t Ag, and 0.17 g/t Au with recovery rates of 79.82% Cu, 76.88% Ag and 59.5% Au to produce over 15 M lb Cu, 327K Oz g and 2,88 Oz Au. At Cusi Mine, Sierra Metals processed 16,280 tonnes in the fourth quarter @ 178.6 g/t Ag, 0.25g/t Au, 0.97% Pb and 1.0% Zn with recovery rates of 88.15% Ag, 58.09% Au, 87.65% Pb and 42.50 Zn to produce 82K Oz Ag, 77 Oz Au, 305K Lb Pb and 152K Lb Zn. During the full year, Cusi Mine processed 88,011 tonnes @ 165 g/t Ag, 0.26 g/t Au, 1.12% Pb and 1.3% Zn with recovery rates of 72.17% Ag, 58.4% Au, 81.26% Pb and 42.56% Zn to produce 337K Oz Ag, 423 Oz Au, 1.7M Lb Pb and 937K Lb Zn. Sierra Metals also provided Production and Cost Guidance 2018 for its Bolivar and Cusi Mines.
  • Leagold Mining Corporation provided 2018 Production and Cost guidance for Los Filos Mine in Guerrero. The company expects to produce 215,000 to 240,000 ounces at an all-in sustaining cost (AISC) of $875 to $925 per ounce. Within the same Mine Complex, the Bermejal Underground expansion project is underway with the decline having advanced to over 320m. It is projected to test mining stopes in mid-2018.

ON FINANCING

  • Orla Mining Ltd. Orla Mining settled a debt of $206,783 to certain creditors after approval by the TSX Venture Exchange, through the issuance of 147,702 common shares of the Company at an issue price of $1.40 per common share. The issued common shares are subject to a four (4) month hold period ending on May 18, 2018. (Camino Rojo, Zacatecas).
  • SilverCrest Metals Inc. closed a non-brokered private placement with Christopher Ritchie of 451,800 units at a price of Cdn $1.66 per unit for gross proceeds of $749,988. No finder’s fee was paid in this placement. In connection with this private placement, Mr. Ritchie was appointed President. (Las Chispas, Sonora)

ON RESOURCES AND DEVELOPMENT

  • Torex Gold Resources Inc. announced maiden Sub-Sill mineral reserves for 180K Oz Au and 180K Oz Ag and updated its mineral resource estimate on El Limón-Guajes Mine Complex in Guerrero to over 3.9 M Oz Au and 6.1 M Oz Ag and mineral reserves estimate to 3.0 M Oz Au and 4.3 M Oz Ag. The mineral resources remain open in three directions. A total Cash Cost of $479 Oz/Au and All Sustaining Cost (AISC) of $512 Oz/Au was estimated. Total capital required is $23M, of which, $22M will be spent in the first year. Figures of the mineral resources and reserves are shown in the next tables below:

There are 6 mining areas in the Sub-Sill mine plan, that range in size from 40 to 100m length on strike, 40 to 200m on plunge, and 3.5 to 25m in thickness dipping at an average of 24°.

ON DEALS AND CORPORATE ISSUES

  • Tonogold Resources Inc. entered into an option agreement with a private Mexican company to acquire 100% interest in the Claudia, Promontorio and Montoros gold-silver properties in Durango, for a total payment of $7.3 M $USD in cash. Grupo Minero Bacis calculated historical resources estimates (not NI 43-101 compliant) for each of the properties. Historic Measured and Indicated Resource for Claudia are 130K tonnes @80 g/t Au, 199 g/t Ag for a total contained metal of 15,891 Oz Au and 832,191 Oz Ag. Historic Inferred Resources are over 12M tonnes @ 3 g/t Au and 193 g/t Ag, for a total contained metal of 1.2 M Oz Au and 74.5 M Oz Ag. On Promontorio, Historic Measured and Indicated Resource are 37,800 tonnes @ 1.20 g/t Au, 382 g/t Ag, for a total contained metal of 1,500 Oz Au and 464K Oz Ag. Historical Inferred Resources are 1.1M tonnes @ 1.2 g/t Au and 370 g/t Ag for a total  contained metal of 42.5K Oz Au and 13M Oz Ag. On Montoros,  Historic Measured and Indicated Resource are 112.7K tonnes @ 2.90 g/t Au, 40 g/t Ag, for a total contained metal of 10.5K  Oz Au and 145K Oz Ag. Historical Inferred Resources are 8.8M tonnes @ 3.5 g/t Au and 34 g/t Ag for a total  contained metal of 990K  Oz Au and 9.6M Oz Ag. Total Historic Measured and Indicated Resource for the three properties are 280.5K tonnes @ 3.9 g/t Au and 160 g/t Ag, for a total contained metal of 227.8K Oz Au and  1.4M Oz Ag. Historical Inferred Resources for the three properties are 21.9M tonnes @ 3.11 g/t Au and 138 g/t Ag for a total contained metal of 2.2M Oz Au and 97M Oz Ag.

A brief description of each property is as follow:

“Claudia covers a 10-kilometer hosting NNW trend of WSW and ENE dipping intermediate sulphidation gold-silver vein systems”.

“The Promontorio Property covers several gold-silver bearing veins with the main Promontorio and Pericos veins reported to have produced ~250,000 tonnes of 3,500 g/t silver and 20 g/t gold during the 1930’s. The narrow, high-grade veins have been traced for more than 2 kilometres but previous exploration has mainly been conducted in a small area of the project”.

“The Montoros Project consists of four vein systems and the alteration consists of propylitization (chloriteepidote- calcite-pyrite) that is more common in the Lower Volcanic Group rocks of the Sierra Made Volcanic Plateau and clay alteration near the vein tops. Mineralization occurs as argentite, native gold, electrum, and base metals. The Periquitos vein contained about 10% chalcopyrite in semi-massive sulphide at the portal. The Montoros vein systems were sampled on surface and by underground workings between 1992 to mid-1993.

  • Galore Resources Inc. entered into a 5-year agreement with a private Mexican company to begin mining Los Gemelos property in Zacatecas state. Urbiaza, a private Mexican company will install a gold processing plant  and will be responsible to mine and sell concentrated gold on a monthly basis,  with any proceeds, net of costs, as reported by URBYASA, being allocated forty percent (40%) to Galore and sixty percent (60%) to URBYASA.

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 below, quartz vein showing lattice calcite replaced by silica in a prospect in Hidalgo, Mexico. Photo by Miguel A Heredia.

Highlights on the Second Week of January, 2018. Mining and Exploration News in Mexico

By Jorge Cirett

Leisure is the mother of all vices, according to an old Mexican proverb, and having ample spare time during the worst part of the down cycle in the mining industry during 2015 led to creation of this weekly newsletter. First by fueling the creation of the Gambusino Prospector site to publish exploration and mining news, and then noticing that in mid-late 2015 there were news releases worth compiling and spreading, like the private raising of noticeable amounts of cash, and then by compiling the news releases by areas of interest. It was a matter of trial and error until a workable format was born. And remember, there was time available, as the downturn was not throwing much work in our way. The bottom of the downturn was felt in early 2016, with raising spirits in March after PDAC, spirits that continued high through May and Midyear. Things were looking brighter through the end of 2016, but it would take until 2017 for work to noticeably increase in Mexico.  The past year has brought relief to drillers and laboratories, as well as some work for geoscientists and other professionals of the exploration area, but full work is still to come. The expectations for this year are high, even if a swing to a full boom is not expected, but a clear optimistic mood can be perceived in the exploration industry. Having said that, compiling and publishing the news releases takes a two or three hours every week day, and compiling, writing and publishing this newsletter takes anything from four hours (a few times in the year) to up to 12 hours in the more extreme cases…… every week of the year. Believe me, we have learnt to dread the times of the year when the quarterly reports are released. Writing the highlights every week is both a pleasure and hard work that satisfies and exhausts. For the last two years Miguel Heredia was taking care of finding and publishing the press releases from companies working in Mexico and I was doing the compression of the information in a few pages. We now have the help of Laura Ramirez in the research and publishing phase, and starting next week Miguel Heredia and I are to start sharing the task of producing the newsletter in alternate weeks.

During the 2nd week of the year (January 8th to January 14th, 2018), things come back to normal with at least 30 press releases being announced by companies working in Mexico. ON MEXICO ISSUES, the illegal blockade at El Limon-Guajes mine in Guerrero continues. A government sanctioned process to set a date to clear the issue will be held at the end of the month (the end of the month!). ON EXPLORATION, in Sonora, Riverside is awaiting drill results from its Glor and Clemente projects and announced its intention to drill during 2018 its Cecilia project; Canuc informed the delineation of several breccia bodies at its San Javier project; San Marco released high-grade copper results from a new zone at its Chunibas project. In Chihuahua Golden Goliath is in the process to select drill targets at its San Timoteo project. In Coahuila, Silver Bull announced high-grade channel sample results from underground workings at its Sierra Mojada project. In Durango, Riverside announced its intention to drill the El Capitan project during 2018. In Guanajuato, Vangold is to measure the underground stockpile (backfill) at its Pinguico mine. In Estado de Mexico Impact Silver updated on exploration on the Zacualpan district. In Hidalgo, Prospero released interesting results on the first drill campaign at the El Petate project. ON MINING, Seven companies: Torex Gold, Coeur Mining, Hecla Mining, Endeavour Silver, Capstone Mining, Alio Gold and Alamos presented preliminary Q4 and annual production results for 2017. Santacruz Silver announced the commencement of construction work to expand the mill capacity at Veta Grande, Zacatecas. ON FINANCING, Avino Silver is now formally on the TSX.  ON RESOURCES AND DEVELOPMENT, Southern Silver updated its resource estimate on Cerro Las Minitas in Durango to over 50 M Oz Ag, 400 M Lb Pb, 1,600 M Lb Zn. Leagold released the high-grade results of the last 15 holes of its 2017 infill and expansion drill program at the Bermejal underground deposit in Guerrero. First Majestic drilled over 800 holes and 156,000 m on its six operating mines and one prospect during 2017. For 2018 its plan is to drill 183,000 m on the same properties and prospect. Minera Alamos has completed the geotechnical reports on the La Fortuna project in Durango, to submit for approval to SEMARNAT. Kootenay Silver is to focus work in 2018 in the expansion of resources and increasing grade on its La Cigarra project in Chihuahua. Mexican Gold plans to focus exploration work in expanding the resource and finding more orebodies at its Las Minas property in Veracruz. Starcore International is to prepare a PEA on the La Fe property in Sinaloa. ON DEALS AND CORPORATE ISSUES, Torex Gold informed two of the largest communities near its El Limon-Guajes mine in Guerrero, Nuevo Balsas and Salvador Trujano, have publicly supported the company and have asked the state government to intervene to lift the illegal blockade. First Majestic has entered into an agreement to acquire Primero Mining in a deal valued in $320 M.

ON MEXICO ISSUES

  • The illegal blockade at El Limon-Guajes mine in Guerrero continues. Torex Gold informed that two communities, Nuevo Balsas and Valerio Trujano have publicly supported the company and have asked the state government to intervene to lift the illegal blockade. The company is using an alternate route to enter and inspect the facilities while a government sanctioned process for selecting the workers union by vote is underway with a meeting scheduled for January 30, 2018, at which time the parties are expected to agree to a timeline for a vote (vote that the blockading union is expected to try to delay).

ON EXPLORATION

  • Impact Silver Corp. updated on exploration work at the Santa Teresa target, located on the Royal mines of Zacualpan district in Estado de Mexico. Numerous north-south and northeast striking veins transect the Santa Teresa area, with 197 assays greater than 1 g/t Au and up to 114.5 g/t Au. Half of the veins have extremely low sulfide content. The presence of a feldspar porphyry is considered to enhance the prospectivity of the area.
  • Riverside Resources Corp. informed on its exploration plans for 2018, which include the reception of drill results from the Glor and Clemente projects in Sonora, the drilling of the El Capitan project in Durango and Cecilia in Sonora. New partnerships will be explored to advance the Tajitos, (Sonora), La Silla (Sinaloa), Thor (Sonora) and Ariel (Sonora) projects.
  • Vangold Mining Corp. is to star underground drilling at its Pinguico property in Guanajuato on January 15, 2018. The drilling is to focus on grade definition of the underground stockpile (backfill) which is thought to amount 500 K tonnes, to define grade and metallurgical properties. The phase 2 program is to target the Pinguico vein to depth and on strike.
  • Canuc Resources Corp. announced that several breccia targets have been exposed and sampled at its San Javier project in Sonora. Recent mapping has shown that the Carranza breccia could extend over an area roughly 400 m by 100 m. Select zones of this breccia have previously assayed 238 g/t Ag, 0.7 g/t Au over 11 m and 133 g/t Ag, 1.1 g/t Au over 6.5 m. Another breccia has been mapped on the Jazmin workings, with local high grade silver-gold results. Over 400 samples have been sent to the lab, assays are pending.
  • San Marco Resources Inc. released assay results from the newly discovered Cu-Ag mineralization on its Chunibas project in Sonora. The rock chip sampling followed the recognition of a geochemical anomaly in a soil survey, resulting in the discovery of isolated outcrops on otherwise covered terrain of presumably intermediate volcanic rocks strongly altered by an assemblage of epidote>chlorite>quartz>calcite>specularite. Results of 16 samples include 0.1%, 5.9%, 0.87%, 0.76%, 1.38%, 0.97% 1.8%, 0.41%, 3.72%, 0.25% Cu; 1, 51, 6, 8, 19, 4, 17, 4, 66, 4 g/t Ag.
  • Silver Bull Resources Inc. informed on high-grade results from channel samples in newly opened and reconditioned historic workings at its Sierra Mojada project in Coahuila. The new zone comprises 350 m of old working, where 39 channel samples up to 2 m in length were collected, with 21 samples returning over 10% Zn and a peak value of 30.7% Zn; 21 samples over 100 g/t Ag and a peak value of 606 g/t Ag; nine samples over 5% Pb and a peak value of 17.6% Pb. “Our underground geological mapping shows a number of high angle structures up to 2 meters wide containing sulphide mineralization grading up to 1,300 grams per ton silver, 42% zinc, 18% lead, and 13% copper that appear to feed into the overlying oxide zone.”
  • Golden Goliath Resources Ltd. is to complete early in 2018 the drill targeting that was commenced on 2017 at its San Timoteo property in Chihuahua. Past work included a review of past data, including geology, geochemistry, structural geology, geophysics and drilling. Final drafting and final drill target selection remain to be completed. The company anticipates receiving a US$100 K option payment in 2018, and a final payment of US$2.8 M in November 2018. This would provide more than enough funding required for drilling without the need for any further dilution that a private placement would create.
  • Prospero Silver Corp. released drill results from its EL Petate prospect in Hidalgo. Highlights include 24.9 m @ 0.76 g/t Au, 22 g/t Ag; 12.6 m @ 0.51 g/t Au; 16.0 m @ 0.75 g/t Au, 2 g/t Ag; 3.9 m @ 1.18 g/t Au, 4 g/t Ag; 14.7 m @ 0.19 g/t Au, 2 g/t Ag; 1.1 m @ 10 g/t Ag, 1.5% Zn; 10.0 m @ 0.49 g/t Au, 24 g/t Ag; 3.2 m @ 1.96 g/t Au, 34 g/t Ag, 0.1% Zn; 19.3 m @ 0.32 g/t Au, 1 g/t Ag; 12.8 m @ 0.28 g/t Au, 6 g/t Ag. These holes were drilled on the El Tajo and Apartadero SE targets. Prospero is now planning to drill the Pachuca SE prospect, with funding being provided by partner Fortuna Silver.

ON MINING

  • Torex Gold Resources Inc. informed that 241 K Oz Au were poured during 2017 at its El Limon-Guajes mine in Guerrero (The production is for the first 10 months of the year, before the illegal blockade by a union trying to grab a contract that continues to date).
  • Coeur Mining Corp. announced fourth quarter and annual production, including figures from its Mexican operations. At Palmarejo, in Chihuahua, during the fourth quarter 389.5 K tonnes were milled @ 215 g/t Ag, 3.1 g/t Au, with a recovery rate of 87% Ag, 92% Au, to produce 2.35 M Oz Ag, 37,537 Oz Au. During the year 1.5 M tonnes were milled @ 175 g/t Ag, 2.8 g/t Au.
  • Hecla Mining Co. released preliminary silver and gold production results for the fourth quarter and full year 2018, including figures from its operations in Mexico. At San Sebastian in Durango, during the fourth quarter 759.1 K Oz Ag, 5,955 Oz Au were produced, while 3.26 M Oz Ag, 25,177 Oz Au were produced during 2017. Cash and cash equivalents stood at $219 M at the end of the year.
  • Endeavour Silver Corp. produced 4.9 M Oz Ag, 53,007 Oz Au on its three operating mines in Mexico during 2017. During the fourth quarter 1.39 M Oz Ag, 14,577 Oz Au were produced from its Guanaceví mine in Durango, and the Bolañitos and El Cubo mines in Guanajuato. At El Compas in Zacatecas, initial production is targeted on March 2018, At Terronera in Jalisco permits have been received to build the mine and the plant, while receipt of the dumps and tailings permit is awaited.endeavour_Tables January 20181
  • Santacruz Silver Mining Ltd. reports that abiding by the terms of the LOI signed with Carrizal Mining S.A. de C.V., Carrizal has commenced construction works to expand the Veta Grande mill to 750 tonnes per day (tpd). In addition Santacruz has received permit for a surface drill program at the Veta Grande project which includes 6,000 m in 15 drill holes on the first phase, funded by Carrizal.Capstone Mining Corp. released Q4 and full year 2017 production results, including figures from its Mexican operations. At Cozamin in Zacatecas, 219.9 K tonnes were mined in the fourth quarter, 223.5 K tonnes were milled (2,430 tpd) @ 1.98% Cu, 0.71% Zn, 0.06% Pb, 46 g/t Ag, recovering 96.2% Cu, 64.2% Zn, 0.9% Pb, 79.7% Ag, to produce 4,254 tonnes Cu, 1,015 tonnes Zn, 3 tonnes Pb, 263.3 K Oz Ag. During the year, 912 K tonnes were mined and milled (2,499 tpd) @ 1.91% Cu, 0.71% Zn, 0.07% Pb, 43 g/t Ag, with recoveries of 96.1% Cu, 65.5% Zn, 8.0% Pb, 78.7% Ag, to produce 16,732 tonnes Cu, 4,232 tonnes Zn, 50 tonnes Pb, 1.0 M Oz Ag.
  • Alio Gold Inc. informed on preliminary production results from its San Francisco mine in Sonora for the fourth quarter and full year 2017. During the fourth quarter 1.72 M tonnes were processed @ 0.46 g/t Au, 6.23 M tonnes of waste were moved for a total of 7.99 M tonnes mined, to produce 16,070 Oz Au and 7,873 Oz Ag.
  • Alamos Gold Inc. reported fourth quarter and annual 2017 production, including figures from its operations in Mexico. During the fourth quarter Mulatos and El Chanate produced 42,700 and 12,100 Oz Au respectively, and 160,000 and 60,400 Oz Au on the whole year. The budget for development of La Yaqui Grande and Cerro Pelon is $13 M, focusing on engineering, permitting and early stage construction. During 2018 open pit grades mined and stacked on the heap leach pad are expected to range between 0.75 and 0.95 g/t Au. “A total of $13 million and 41,500 m has been budgeted at Mulatos for exploration in 2018 with the main areas of focus being El Carricito, La Yaqui Norte – Halcon, El Refugio, San Carlos and the near mine area”. At El Chanate mining activities are expected to cease mid-2018. Total crushed and run of mine ore is expected to average 9,700 tpd @ 0.69 g/t Au.

 

  • ON FINANCING
  • Avino Silver & Gold Mines Ltd. has received final approval from the Toronto Stock Exchange (TSX) to list its common shares and warrants on January 8th, 2018. Concurrently with the TSX listing, the Shares and Warrants will be delisted from the TSX Venture Exchange (TSX-V) (Avino, Durango).

 

  • ON RESOURCES AND DEVELOPMENT
  • Southern Silver Exploration Corp. updated the mineral resource estimate at its Cerro Las Minitas JV project in Durango (SSV 40%, Electrum Global Holdings LP 60%). The resource was calculated on four deposits: Blind zone, El Sol, Las Victorias and Skarn Front, with 10.1 M tonnes @ 102 g/t Ag, 0.10 g/t Au, 1.4% Pb, 3.6% Zn, 0.15% Cu as indicated resources, holding 33.4 M Oz Ag, 34 K Oz Au, 319 M Lb Pb, 813 M Lb Zn and 8.7 M tonnes @ 74 g/t Ag, 0.04 g/t Au, 0.7% Pb, 4.5% Zn as inferred resources containing 20.7 M Oz Ag, 12 k Oz Au, 131 M Lb Pb, 870 M Lb Zn.
  • Leagold Mining Corp. reported results for the final 15 drill holes at the Bermejal Underground project at the Los Filos mine in Guerrero. These infill and step-out holes intersected high grade intervals like (true width): 4.16 m @ 9.2 g/t Au; 3.05 m @ 8.8 g/t Au; 1.77 m @ 10.1 g/t Au; 1.77 m @ 61.3 g/t Au; 7.43 m @ 12.4 g/t Au; 5.12 m @ 8.1 g/t Au; 3.89 m @ 7.0 g/t Au; 8.08 m @ 5.9 g/t Au; 13.59 m @ 4.75 g/t Au; 6.89 m @ 12.3 g/t Au; 14.08 m @ 20.2 g/t Au; 7.34 m @ 35.6 g/t Au; 10.49 m @ 8.79 g/t Au; 14.33 m @ 8.0 g/t Au; 23.57 m @ 6.1 g/t Au. A total of 111 holes comprising 56,280 m were drilled in this program, from April to December. To date the Bermejal Underground deposit contains 2.1 M Oz Au contained on 10.8 M tonnes @ 6.0 g/t Au. Los Filos currently operates two open pits, Los Filos and Bermejal, and the Los Filos underground mine.
  • First Majestic Silver Corp. disclosed a year-end review of its 2017 exploration program, which includes over 156,500 m of diamond drilling on 807 holes across its six operating mines and the Plomosas project. Highlights include a new discovery at Ermitaño West (in Sonora) with drill TW intersects of 37 m @ 3.0 g/t Au, 50 g/t Ag; 12.9 m @ 4.7 g7t Au, 277 g/t Ag; identification of the Main Vein extension to the west at Santa Elena in Sonora; discovery of the La Fe replacement orebody at La Encantada in Coahuila; discovery of the Cerro de Santiago vein at La Parrilla, in Durango; the extension of the Santa Teresa vein to the south at Del Toro mine in Zacatecas; the continuation of the Hedionda vein in the San Martin mine in Jalisco; the Nazareno northwest extension and the Nazareno de Ancas finding at La Guitarra in Estado de Mexico; the extension of the Plomosas vein and finding a new stockwork system at Plomosas in Sinaloa. For 2018, a 183,000 m drilling program is envisaged across the six operating mines and the Plomosas project.
  • Minera Alamos Inc. has completed the geotechnical studies for the approval of its mine development permits for the La Fortuna gold project in Durango. The study that includes the design of the containment facilities comprise the final data package to be submitted to the environmental authorities (SEMARNAT).
  • Kootenay Silver Inc. informed on 2017 activities at La Cigarra in Chihuahua. The drilling of 37 core holes resulted on significant discoveries In the RAM and Las Venadas zones. Other activities include the re-logging of the entire La Cigarra deposit, mapping and sampling of seven other prospective zones. Work in 2018 is to focus in increasing the current resource and grade at La Cigarra. At La Negra, in Sonora, partner Pan American Silver announced the results of 26 holes from an infill program, including 7.5 m @ 529 g/t Ag within 40.8 m @ 194 g/t Ag.
  • Mexican Gold Corp. informed on work completed during 2017 at its Las Minas property in Veracruz, which includes the completion of an initial 43-100 resources estimate for two of eight known mineralized zones, the completion of 5,873 m of drilling at El Dorado/Juan Bran and Cinco Señores zones, the extension of several zones, the identification of a parallel mineralized zone at Cinco Señores, the completion of geophysical surveys and the purchase agreements on several claims. For 2018 the focus is to expand the initial resource on El Dorado/Juan Bran and the Santa Cruz zone; exploration drilling of the Cinco Señores and Las Minillas zone; the field exploration at the Santa Cruz, Pueblo Nuevo and Changaro zone.
  • Starcore International Mines Ltd. has engaged Global Kompas to undertake a preliminary economic assessment (PEA) of the Santa Fe project in Sinaloa. The property was previously optioned by another company, completing two explorations programs up to 2014 which concluded with no mineral resource, but that discovered multiple veins and mineral ore shoots.
  • ON DEALS AND CORPORATE ISSUES
  • Torex Gold Resources Inc. informed on the state of affairs on the illegal blockade at its El Limon-Guajes mine in Guerrero, announcing that two of the larger communities, Nuevo Balsas and Valerio Trujano have publicly supported the company and have asked the state government to intervene to lift the illegal blockade. Access to the mine site has been gained through a road used during construction on the Rio Balsas Ejido land, allowing crews to inspect the site, make maintenance plans and plans to re-start operations if the security of the site can be assured. The government sanctioned process for a workers’ vote to select the union they want to represent them is underway with a meeting scheduled for January 30, 2018, at which time the parties are expected to agree to a timeline for a vote (date that the blockading union is expected to try to delay).
  • First Majestic Silver Corp. has entered into a definitive agreement to acquire all issued and outstanding shares of Primero Mining Corp. by exchanging Primero’s shares for First Majestic shares on the basis of 0.03325 of a First Majestic common share for each Primero common share. Concurrently First Majestic has entered into agreement with Wheaton Precious Metals International Ltd. (WPM) whereby the current silver streaming interest at Primero’s San Dimas Ag-Au mine in Durango will be terminated. First Majestic and WPM are to enter into a new stream arrangement based on 25% of the gold equivalent production at San Dimas, with ongoing payments of $600 per AuEq Oz delivered under the agreement. As part of the transaction WPM will receive 20.9 M common shares of First Majestic, valued at $151 M. The total transaction values is estimated at $320 M.
  • 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 below, argillitized porphyritic intrusive with quartz veining and minor sericite alteration still visible, in a prospect of the Durango Altiplano. Photo by Jorge Cirett.

 

  • SD intrusive4 - copia

 

Highlights on the Fourth Week of November, 2017. Mineral Exploration in Mexico

During the 47th week of the year (November 20th to November 26th, 2017), at least 32 press releases were announced by companies working in Mexico. ON MEXICO ISSUES: No relevant news. ON EXPLORATION: six companies informed on exploration efforts during the week: In Sonora Azure Minerals reported favorable metallurgical results from its Oposura project. In Chihuahua Monarca is to acquire the San Jose project; Mammoth Resources mobilized equipment to drill its Tenoriba property. In Sinaloa Starcore is to acquire the Santa Fe project, with an historical Au-Ag resource. Silver Bull released drill results from the sulfide zone at Sierra Mojada; Prize Mining is to acquire the Manto Negro stratabound copper project. Evrim Resources announced the acquisition of the Cuale high sulfidation property. In Veracruz Mexican Gold announced step-out drilling mineralization intercepts at Las Minas. ON MINING: Impact Silver presented its quarterly report. Marlin Gold informed on the mining program at La Trinidad in Sinaloa.  In Zacatecas, operations recommenced at the Santacruz Silver’s Veta Grande mill after the PROFEPA suspension. MX Gold informed on advance at the Magistral tailings project in Durango. Americas Silver informed the San Rafael mine is sourcing all ore treated in Cosalá. ON FINANCING: Telson Resources received $1 M from the exercise of warrants. Aztec Minerals is now trading on the USA. Primero Mining obtained an extension on its revolving credit facility. ON RESOURCES AND DEVELOPMENT: Leagold Mining reported more high-grade results from drilling at Bermejal Underground on its Los Filos property in Guerrero. Stroud Resources announced an updated resource estimate for its Santo Domingo Hostotipaquillo deposit in Jalisco. Almaden Resources released more drill results from the Ixtaca deposit in Puebla.  ON DEALS AND CORPORATE ISSUES: Soleil Capital and Goldplay Exploration are to amalgamate to create a precious metals exploration company focused in Mexico. Monarca Minerals signed a LOI to acquire the San Jose property in Chihuahua. Starcore entered into a LOI to acquire the Santa Fe property in Sinaloa. Camrova Minerals (Baja Mining) has seen its interest on El Boleo property (in Baja California) reduced to 7.3%. Bacanora Minerals is involved in a lawsuit over a 3% royalty on its Sonora lithium project. Golden Goliath has received the fifth payment on the option of its Uruachic properties. Prize mining is to acquire the Manto Negro project in Coahuila from Scion Mines.

ON MEXICO ISSUES

  • No Relevant News.

ON EXPLORATION

  • Azure Minerals Ltd. reported metallurgical results from its Oposura project in Sonora. The test returned over 70% and 80% recoveries respectively for Pb and Zn, producing a lead concentrate (>55% Pb, 360 g/t Ag) and a zinc concentrate (>55% Zn) with low levels of deleterious elements. More metallurgical studies will be undertaken on core material from the present drill campaign.
  • Monarca Minerals Inc. entered into a letter of intent (LOI) to acquire the San Jose property in Chihuahua. The 5,580 hectares project shows disseminations, stockwork and veins of skarn, gossan and altered intrusive rocks, with assays of up to 26.8 g/t Au, 161 g/t Ag, 6.5% Pb, 0.9% Zn, 4.2% Cu.
  • Starcore International Mines Ltd. entered into a letter of intent (LOI) with Eduardo de la Peña Gaitan and other owners, to acquire the 21,000 hectare Santa Fe project in Sinaloa. Previous exploration included 13,000 m of drilling in 2013, establishing an historical (Non 43-101 compliant) open pit resource of 285 K AuEq Oz in 5 M tonnes @ 89 g/t Ag, 0.56 g/t Au; or an underground resource of 225 K AuEq Oz in 1.28 M tonnes @ 266 g/t Ag, 1.83 g/t Au.
  • Mammoth Resources Corp. has mobilized a drill rig and a bulldozer to its Tenoriba property in Chihuahua. The company is to begin a 3,000 m drill program in 8 to 24 holes to test gold-silver targets on a 5 km strike length within a 15 square Km area of ubiquitous high sulfidation gold mineralization. The company announced the release of a technical report on the drill selection criteria.
  • Silver Bull Resources Inc. released results from four drill holes testing the sulfide zone below the previously defined oxide zone on its Sierra Mojada project in Coahuila. Highlighted results comprise 9 m @ 20.7% Zn, 1.0% Pb, 98 g/t Ag, 0.26% Cu, including 3.65 m @ 47.8% Zn, 2.5% Pb, 105 g/t Ag, 0.26% Cu; 3 m @ 537 g/t Ag, 3.9% Zn, 1.1% Cu, including 1 m @ 1,280 g/t Ag, 14.8% Zn, 2.3% Cu.
  • Prize Mining Corp. entered into an agreement (see the appropriate section below) to acquire the Manto Negro copper project in Coahuila. The project consists of seven mining concession covering 17,959 hectares. “The Project is identified as a stratabound Cu-Ag (+/- Pb-Zn) oxidized “Red Bed type” copper deposit… The Project area is hosted by Cretaceous carbonates and sandstones with exposures of mineralization being identified in numerous locations occurring in concordant layers ranging from 2 to 23 metres thick that are referred to as “Mantos”. Exposures of this mineralization have been identified over the 50-kilometre length of the Project.” The grades of historical sampling, trenching and drilling range from 0.73% to 5.55% Cu, 19 to 793 g/t Ag, 1.5 to 15% Pb and 0.3 to 3.64% Zn.
  • Mexican Gold Corp. announced that drilling to expand the high-grade dike contact mineralization previously encountered at its Las Minas project in Veracruz has successfully intersected long intervals of chalcopyrite-magnetite mineralization in five additional holes. Core length intervals include: 0 m; Cumulative 48.0 m; 20.3 m; cumulative 28.0 m, 28.0 m of chalcopyrite-magnetite mineralization.
  • Evrim Resources Corp. announced the acquisition and early exploration results of the 97 square kilometer Cuale gold project in Jalisco. The Cuale project was initially staked under the Callinan Royalties generative alliance (now owned by Altius Minerals Corp.) with formal title granted to Evrim for 100% ownership in November 2017. “Mineralization is found in moderately to strongly silicified rhyolite that contains up to 10% specular hematite in boxworks, interpreted to have formed after pyrite. Zones of pervasive silicification with strong clay alteration of phenocrysts trending to vuggy silica are observed..” Seven rock chip samples collected on a 500 m by 250 m zone returned from 0.19 to 4.56 g/t Au.

ON MINING

  • Impact Silver Corp. released its financial and production third quarter 2017 report. Production at the Guadalupe mill came primarily from the San Ramon Deeps, Cuchara and San Patricio mines. Highly variable ore from the San Ramon Deeps mine contributed to the lower grade mill feed @ 175 g/t Ag. Total silver production was 229.9 K Oz. Exploration work is focused on the Alacran, Alacran North, San Ramon North and El Paso vein. The company had a $6.0 M cash position at the end of the period.
  • Marlin Gold Mining Ltd. informed that most of the mining during the year at La Trinidad, in Sinaloa, focused on expanding and deepening the north side of the Taunus pit, while waste removal continues on the southern part of the pit. Up to the end of October, 35,500 Oz Au have been shipped. Drilling commenced at the Colinas target, 1.2 km south of the pit.
  • Santacruz Silver Mining Ltd. recommenced operations at its Veta Grande mill in Zacatecas, following the authorization by PROFEPA and SEMARNAT (Environmental agencies in Mexico).
  • MX Gold Corp. informed all major tankage at the Magistral tailings project in Durango has been installed, with the grinding mill scheduled for completion in Early December 2017, and the installation of the Merrul-Crowe circuit underway.
  • Americas Silver Corp. informed production from the San Rafael mine at the company’s Cosalá operations in Sinaloa is now the sole source of mill feed. The mine is currently producing over 1,000 tonnes per day (tpd) of the targeted 1,500 tpd, with a stockpile of over 25 k tonnes from San Rafael and further 50 K tonnes of ore from Nuestra Señora.

ON FINANCING

  • Telson Resources Inc. reported that all the warrants issued as part of a private placement on November 2015 have been exercised, resulting in CAD$1 M in proceeds (Tahuehueto, Durango; Campo Morado, Guerrero).
  • Aztec Minerals Corp. has been approved to commence trading in the USA as of Nov 20th 2017, on the OTCQB under the symbol AZZTF (Cervantes, Sonora).
  • Primero Mining Corp. has agreed in principle with its lenders to an extension to its revolving credit facility and guarantee provided by Wheaton Precious Metals Corp., previously maturing on November 23, 2017. The facility has been extended to December 1, 2017, providing the company to continue negotiations on its strategic review process and the possible divestiture of its San Dimas mine in Durango.

ON RESOURCES AND DEVELOPMENT

  • Leagold Mining Corp. reported additional high-grade results from the Bermejal Underground drill program at the Los Filos mine in Guerrero. “Bermejal Underground is at the northern end of a large intrusive body which has a total circumference of at least 15 kilometres…” The area being drilled extends 1,600 m along the strike of the intrusive contact and has a vertical depth extent of over 800 m. The drilling shows consistent oxide mineralization at carbonate/intrusive contacts either along the intrusive contact or below the intersection between the sill and the Bermejal intrusive contact. An updated resource estimate is expected before year end.

Leagold Bermejal Underground drilling1

  • Stroud Resources Ltd. updated the resource estimate in a new technical report on its Santo Domingo Hostotipaquillo project in Jalisco. The reports confirms the presence of 6.1 M tonnes @ 0.47 g/t Au, 101 g/t Ag and 3.48 M tones @ 0.39 g/t Au which contain 91.6 K Oz Au, 19 M Oz Ag as measured and indicated resources and 43.2 K Oz Au, 10 M Oz Ag as inferred resources. La Raya vein has a mineralized zone 35 m wide over 700 m along strike and 300 m of depth; and the Guadalupe vein is typically 15 to 30 m wide. Five additional veins have been identified for further exploration.
  • Almaden Minerals Ltd. released drill results from its ongoing exploration and development program for the feasibility study (FS) of the Ixtaca deposit at its Tuligtic project in Puebla. Two holes confirmed the discovery of an ore zone within a portion of the pit considered waste in the prefeasibility study (PFS). The holes intersected 23 m @ 0.45 g/t Au; 38.6 m @ 7.92 g/t Au, 15 g/t Ag (including 1 m @ 237 g/t Au, 232 g/t Ag); 20.4 m @ 0.89 g/t Au, 12 g/t Ag (including 7.0 m @ 2.07 g/t Au, 20 g/t Ag).

ON DEALS AND CORPORATE ISSUES

  • Soleil Capital Corp. entered into an amalgamation agreement with Goldplay Exploration Ltd. on a business combination transaction. “The purpose of the Proposed Transaction is the creation of a public, TSX Venture Exchange-listed, Mexico-focused, precious metals exploration company utilizing Goldplay’s mineral exploration strategy and experience related to the Rosario District..” in Sinaloa. Upon completion of the transaction the resulting issuer will be named Goldplay Exploration Ltd. and will be listed as a Tier 2 Mining Issuer on the Exchange.
  • Monarca Minerals Inc. entered into a letter of intent (LOI) to acquire the San Jose property in Chihuahua. The 5,580 hectares project shows disseminations, stockwork and veins of skarn, gossan and altered intrusive rocks. The terms of the LOI include a US$20 K payment on execution of the LOI (paid), US$20 K on execution of the definitive agreement, US$50 K on the first anniversary, and US100 K on the second anniversary, with the owners retaining a 2% NSR, of which one percent can be purchased by Monarca for US$100 k. Back taxes on the property of US$390 K will be paid over a period of time. Concession taxes per year are approximately US$46 K.
  • Starcore International Mines Ltd. entered into a letter of intent (LOI) with Eduardo de la Peña Gaitan and other owners, to acquire the 21,000 hectare Santa Fe project in Sinaloa. Starcore has up to 120 days to conduct due diligence work, and 30 days to complete the acquisition. Starcore is to issue 5 M shares to the owners upon signing, and will be released on four installments, and pay US$6 M as follows: US$2 M on execution; US$1 M on 18 months; US$1 M on 36 months; US$1 M on 48 months; US$1 M on 60 months.
  • Camrova Resources Inc. (Baja Mining Corp.) informed that its interest in Minera y Metalurgica del Boleo S.A. P.I, de C.V. has been reduced from 10% to 7.3%. This is a result of Korea Resource Corporation funding Camrova’s pro rata ($42.9 M) on cash calls amounting $429 M. The Boleo project is to annually produce 30 K tonnes Cu, 700 tonnes Co, 10,500 K tonnes Zn sulfate (Boleo, Baja California).
  • Bacanora Minerals Ltd. announced that it filed a statement of claim seeking to void ab initio, a 3% gross over-riding royalty held by the Estate of Colin Orr-Ewing over certain of Bacanora assets in Sonora. The company also announced amendments to the employment arrangements of certain members of the executive management firm.
  • Bacanora Minerals Ltd. has been served by the estate of the late Ian Colin Orr-Ewing with legal proceedings filed on September 20th September 2017, on a dispute regarding the ownership of 3% gross overriding royalties over Bacanora’s Sonora Lithium project and Magdalena Borates project. The Estate currently owns 8.15% of the common shares of Bacanora.
  • Golden Goliath Resources Ltd. has now received the fifth in a series of seven optional payments from Fresnillo PLC for the properties optioned to them in the Uruachic mining district in Chihuahua. This $100 K payment is to be followed by another $100 k due on May 2018 and a final US$2.3 M payment on November 2018, if Fresnillo is to keep the property. Golden Goliath plans to use the final payment to pay for the drill program on its 100% owned San Timoteo property in Chihuahua.
  • Prize Mining Corp. entered into an agreement with Scion Mines S.A. de C.V. to acquire 100% interest in the Manto Negro copper project in Coahuila, by issuing 6 M shares with a restricted lock-up and restricted resale period. Six million shares more are to be issued if the next milestones are met on a 43-101 technical report: 2 M bonus shares if the estimated copper resource is over 500 M Lb; 2 M bonus shares if the estimated copper resource is over 750 M Lb; 2 M bonus shares if the estimated copper resource is over 1 B Lb.

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 below, magnetite-chalcopyrite mineralization on drill core from Las Minas, Veracruz. Photo by Mexican Gold Corp. on its Nov 23rd, 2017 press release.

Core from Las Minas, Veracruz, photo from press release in Nov 2017

Evrim Acquires Cuale Gold Project in Mexico – Defines new zone in an oxidized high sulphidation gold system

2017-11-23_NR_EVM

VANCOUVER, British Columbia, Nov. 23, 2017 (GLOBE NEWSWIRE) — Evrim Resources Corp. (TSX-V:EVM) (“Evrim” or the “Company”) is pleased to announce the acquisition and initial exploration results of the Cuale gold property, an early-stage exploration property prospective for high sulphidation epithermal gold-silver in Jalisco, Mexico.  The Cuale project was initially staked under the Callinan Royalties Generative Alliance (now owned by Altius Minerals Corporation (TSX:ALS)) with formal title granted to Evrim for 100% ownership in November 2017.