high sulphidation

The Mining and Exploration News in Mexico: Highlights on the Fourth Week of April, 2021.

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Mesothermal sheeted quartz veins

By Miguel A Heredia

During the 16th week of the year (April 19th to April 25th, 2021), at least 33 press releases were announced by companies working in Mexico and 5 news published by the media, with twelve informing on exploration results, nine disclosing deals and corporate issues, five commenting on Mexican issues, four announcing financial rounds, four reporting on resources and development, three communicating production results, and one discussing social issues.  ON MEXICO ISSUES, The Ministry of Economy issued an informative note to correct what President López Obrador said about the expansion of the operations of the mining company El Boleo that operates in Baja California Sur. Fernando Alanís, president of the Mining Chamber of Mexico (Camimex), stated that the mining industry in Mexico paid MXP $30,374M in taxes during 2020. The Mining Chamber of Mexico (Camimex) stressed that mining is a tractor industry that, in addition to boosting the regional economy, supports the development of other economic activities. The Mexican mining industry called on the environmental authorities to hold a dialogue to understand the reasons why the permits are being stopped. Representatives of the Mexican Mining industry asked the federal government to reactivate mineral concessions to increase investments in the sector. ON EXPLORATION, In Baja California, One World Lithium commenced the DDH-3 drilling program at its Salar del Diablo project. In Sonora, Alamos Gold commenced an initial drilling program at Los Venados project, Silver Spruce and its partner received the approved environmental permit from SEMARNAT to drill its El Mezquite project, and Colibri released trenching sampling results from its flagship Evelyn project. In Chihuahua, Mammoth reported results from an additional 2km 3D modeling IP/Mag survey conducted at its Tenoriba project.  In Sinaloa, Kootenay provided an update on the current drilling program conducted at its Copalito project. In Durango, Mithril informed on the exploration activities carried out during Q1, 2021 at its Copalquin project. In Zacatecas, Advance Gold announced drilling results from its Tabasquena project, and Zacatecas Silver reported that it has completed first pass geological and structural mapping, and sampling of the San Gil breccia Zone at its Zacatecas Silver project. In Jalisco, GoGold released results from eight diamond holes collared at its Los Ricos North project. ON MINING, Golden Minerals reported Q1, 2021 production results from its Rodeo mine in Durango. Gold Resource announced Q1, 2021 preliminary production results from its Oaxaca Mining Unit in Oaxaca. McEwen reported the production of 1, 300 Oz AuEq (GEOs) from residual leaching at its El Gallo mine in Sinaloa during the first quarter of 2021.  ON  FINANCING, Colibri granted 1.9M incentive stock options to officers, directors, and consultants (Evelyn project, Sonora). Empress Royalty granted 8.9M stock options to directors, officers, consultants, and employees (Pinos project, Zacatecas). Pantera Silver applied to trade on the OTCQB Venture Market operated by the OTC Markets Group Inc. in New York (The Nuevo Taxco Silver project, Guerrero). Sonoro closed its oversubscribed non-brokered private placement for gross proceeds of $3,111.045 (Cerro Caliche project, Sonora).   ON RESOURCES AND DEVELOPMENT, Discovery Silver presented results from 13 diamond holes collared at its Cordero project in Chihuahua. Excellon reported underground expansion and exploration drilling results from its Platosa mine in Durango. Sierra Metals announced an investment of USD $28M for the construction of an iron ore processing plant to produce magnetite concentrate at its Bolivar mine in Chihuahua. Silver Tiger released high-grade drilling results from its El Tigre project in Sonora.  ON DEALS AND CORPORATE ISSUES, Empress appointed a new member to its Board of Directors, and two members as Strategic and Technical Advisors (Pinos project, Zacatecas).  Golden Goliath held its annual general meeting of shareholders (San Timoteo property, Chihuahua). Goldgroup provided a legal update on its dispute with DynaResource regards the San Jose de Gracia property in Sinaloa. Inomin announced the hiring of two members to lead its exploration program in Oaxaca, Mexico (La Gitana project, Oaxaca). Masivo Silver announced it is moving forward to sign a definitive agreement on several mineralized mining concessions comprising La Santa Madre project in Sinaloa. Ridgestone appointed Dante E Aguilar as its Mexican Country Manager (Rebeico project, Sonora). Santacruz announced that the acquisition of the Zimapan mine assets from Minera Cedros, S.A.de C.V. together with the USD $17.6M loan facility from Trafigura Mexico, S.A. de C.V., are now expected to close on or about April 23, 2021. Silver Bull presented results from its annual general meeting of shareholders (Sierra Mojada project, Coahuila).  Vizsla Silver announced the spinout of Vizsla Copper through a statutory plan of arrangement (Panuco project, Sinaloa).  ON SOCIAL RESPONSIBILITY, Torex signed an agreement to build a solar plant at its Morelos property.

ON MEXICO ISSUES

  • The Ministry of Economy issued an informative note to correct what President López Obrador said about the expansion of the operations of the mining company El Boleo that operates in Baja California Sur. The mining and metallurgical company is seeking an expansion in the surface of its operations and not a new concession as stated by the president. In July 2019, El Boleo requested an expansion of its environmental impact statement, in which it requested an expansion of its mine by 446 hectares contiguous to its current operation. They indicated that this is because the life of the main mine is running out and its mineral reserves are in this adjoining land. The statement indicates that the mining project began construction in December 2010, with an investment of USD $1,717M, and began production in 2015. The company produces copper, cobalt, zinc and manganese. Currently, the mining company employs 1,282 direct jobs (836 unionized and 446 trusted).
  • Fernando Alanís, president of the Mining Chamber of Mexico (Camimex), stated that the mining industry in Mexico paid MXP $30,374M in taxes during 2020. He also highlighted that those that refer to the fact that the industry pays little are myths, as he highlighted that around 10.6% of the Gross Domestic Product generated by the industry is destined to the payment of taxes, higher than the 7.6% of the manufacturing industry, or the 6.1% of the electricity sector. Fernando Alanis detailed that of the total taxes paid, MXP $24,205M are for Income Tax (ISR), while there are MXP $2,576M in surface rights and MXP $3,593M in new rights.
  • The Mining Chamber of Mexico (Camimex) stressed that mining is a tractor industry that, in addition to boosting the regional economy, supports the development of other economic activities. It drives construction with average annual investments of USD $5B a year. The same occurs with the transport of materials, by promoting the movement of 8.7M tons per year that travel 100.2million kilometers on the roads (78%) and railways (22%) of Mexico. It also boosts port activity, with the export and import of 474M tonnes of materials per year. In total, the transportation costs of mining companies in Mexico total USD $245M per year. Through the mining clusters (Zacatecas, Sonora, Chihuahua, Guerrero and Sinaloa) a local supply has been developed that amounts to 9,700 national supplier companies, 90% of which are small and medium-sized enterprises (SMEs). For Mexico, the mining industry is an outstanding generator of income, contributing 8.3% to the industrial GDP and 2.5% to the national GDP. It is also a large generator of jobs, with more than 379,000 direct jobs and almost 2 million indirect jobs.
  • The Mexican mining industry called on the environmental authorities to hold a dialogue to understand the reasons why the permits are being stopped and to work together to unlock authorizations for Environmental Impact Manifestations (MIAs) that are being held at the Ministry of the Environment and Natural Resources which have stopped several mining projects in the country. Mining in Mexico has a robust environmental legislation that is permanently addressed, among which the General Law of Equilibrium and the Environmental Protection, as well as seven Official Mexican Standards and the general regulation that exists for activity in protected natural areas in Mexico, among others.
  • Representatives of the Mexican Mining industry asked the federal government to reactivate mineral concessions to increase investments in the sector. No new mining concessions have been granted in the country since 2019 and the effects of this were reflected in a lower Foreign Direct Investment in the sector.

ON EXPLORATION

  • One World Lithium Inc., commenced the DDH-3 drilling program at its Salar del Diablo project in Baja California. DDH-3 is located 50Km south of DDH-2 and depending on results, the company may drill more diamond drill holes in the immediate area.
  • Alamos Gold Inc., and its partner Aloro Mining Corp., commenced an initial drilling program at Los Venados project at the Mulatos mining district in Sonora. The initial drilling program will be focused on testing high sulphidation gold mineralization near the Mulatos open pit as well as on low sulphidation gold mineralization to the north where some high grade veins have been identified.
  • Silver Spruce Resources Inc., and its partner Colibri Resource Corporation, received the approved environmental permit from SEMARNAT to drill its El Mezquite project in Sonora. The phase 1 will consists of 2,000m. The drill permit was granted for 14 drill pads over the targets in the northern area of the concession. 
  • Colibri Resource Corporation released trenching sampling results from its flagship Evelyn project in Sonora. Highlights include four high grade samples from El Sahuaro target area with results of 44.9 g/t Au and 21 g/ Ag; 8.24 g/t Au and 8 g/t Ag, 23.3 g/t Au and 16 g/t Ag; and 39.6 g/t Au and 23 g/t Ag.
  • Mammoth Resources Corp., reported results from an additional 2km 3D modeling IP/Mag survey conducted at its Tenoriba project in Chihuahua.  The geophysical survey defines a strong correlation between anomalous Au values found from soil, chips, and channel samples, as well as Au values found in numerous diamond holes, extending these coincident features over what now totals 2.4Km trend of a larger 6km trend of surface  Au-Ag mineralization at Tenoriba project.
  • Kootenay Silver Inc., provided an update on the current drilling program conducted at its Copalito project in Sinaloa. It has completed 1,600m of the planned 3,500m over 19 shallow drill holes. Highlights include hole BDH-20-004 collared at 5 Senores Vein with 0.28 g/t Au and 1,297 g/t Ag (1,323 g/t AgEq) over 3.2m, including 0.14 g/t Au and 2,830 g/t Ag (2,843 g/t AgEq) over 1m; hole BDH-20-15 collared at Pilar Vein with 0.48 g/t Au, 40 g/t Ag, and 1.2% Pb+Zn (111 g/t AgEq) over 7m, including 2.28 g/t Au, 51 g/t Ag, and 6.2% Pb+Zn (394 g/t AgEq) over 1.2m; hole BDH-20-33 collared at Pilar Vein with 0.7 g/t Au, 101 g/t Ag, and 2.3% Pb+Zn (215 g/t AgEq) over 2.7m, including 7.05 g/t Au, 59 g/t Ag, and 13.5% Pb+Zn (1.210 g/t AgEq) over 0.2m; and hole BDH-20-040 collared at 5 Senores Vein with 6.65 g/t Au, 335 g/t Ag, and 2.6% Pb+Zn (933 g/t AgEq) over 2.25m, including 16.95 g/t Au, 369 g/t Ag, and 3.7% Pb+Zn (1,813 g/t AgEq) over 0.51m, and 2.09 g/t Au, 124 g/t Ag, and 0.8% Pb+Zn (311 g/t AgEq) over 9.05m. The Program has focused primarily on the 5 Senores vein, with drilling now stepping out to test the Agua and Chiva Veins.
  • Mithril Resources Inc., informed on the exploration activities carried out during Q1, 2021 at its Copalquin project in Durango. The company is focused on delivering maiden JORC Au-Ag resource for El Refugio target in H2, 2021, where hole CDH-050 intersected 62 g/t Au and 445 g/t Ag over 4.17m. The drill plan for the next quarter is to drill test deeper part of the target. At La Soledad target, hole CDH-054 encountered 10.36 g/t Au and 81 g/t Ag over 4.88m, extending the mineralization further to the west and down dip. The company also informed that it has completed the soil sampling program within El Cometa and Reyes project areas.
  • Advance Gold Corp., announced drilling results from its Tabasquena project in Zacatecas. Hole AGT-23 intersected two zones, one of 0.63 g/t Au, 20 g/t Ag, 3.5% Pb,  and 8% Zn over 2m, and a second zone of 0.04 g/t Au, 6 g/t Ag, 0.18% Pb, and 1.1% Zn over 0.55m. Advance has drilled 23 holes to date and has outlined a 2,500m by 500m wide mineralized corridor and plans to carry out more mapping and geophysics to find the feeder system at  depth responsible for this widespread mineralization.
  • Zacatecas Silver Corp., reported that it has completed first pass geological and structural mapping, and sampling of the San Gil breccia Zone, located 2km southwest of the Veta Grande vein within its Zacatecas Silver project, Zacatecas. The company outlined a north-south trending zone of ferruginous breccia averaging 20-40m wide, over a strike length of at least 800m with strong anomalous values of Ag, Au, Zn, and As, mainly in the northern segment. The company is planning a drilling program since over 600m of the northern segment of this breccia remains untested by previous drilling.
  • GoGold Resources Inc., released results from eight diamond holes collared at its Los Ricos North project in Jalisco. Significant mineralized drill intervals were encountered at hole LRGCS-21-016 with 0.69 g/t Au and 140 g/t Ag (2.55 g/t AuEq or 191 g/t AgEq) over 23.4m, including 4.94 g/t Au and 820 g/t Ag (15.87 g/t AuEq or 1,191 g/t AgEq) over 1m, and a second interval of 0.69 g/t Au and 151 g/t Ag (2.7 g/t AuEq or 155 g/t AgEq) over 15m, including 3.7 g/t Au and 797 g/t Ag (14.33 g/t AuEq or 1,075 g/t AgEq) over 2.2m; hole LRGCS-21-022 with 0.32 g/t Au and 115 g/t Ag (1.86 g/t AuEq or 140 g/t AgEq) over 14.9m, including 1.4 g/t Au and 664 g/t Ag (10.24 g/t AuEq or 768 g/t AgEq) over 2m; LRGCS-21-024 with 0.44 g/t Au and 116 g/t Ag (2 g/t AuEq or 150 g/t AgEq) over 21m, including 0.77 g/t Au and 211 g/t Ag (3.58 g/t AuEq or 268 g/t AgEq) over 9.3m, including 1.66 g/t Au and 392 g/t Ag (6.88 g/t AuEq or 516 g/t AgEq) over 1.7m, and a second interval of 0.37 g/t Au and 115 g/t Ag (1.91 g/t AuEq or 143 g/t AgEq) over 12m, including 1.11 g/t Au and 355 g/t Ag (5.85 g/t AuEq or 439 g/t AgEq) over 3.2m; and hole LRGCS-21-025 with 1.4 g/t Au and 201 g/t Ag (4.08 g/t AuEq or 306 g/t AgEq) over 16.8m, including 8.28 g/t Au and 700 g/t Ag (17.6 g/t AuEq or 1,320 g/t AgEq) over 1.5m. These drill results extended mineralization at Casados deposit.

ON MINING

  • Golden Minerals Company reported Q1, 2021 production results from its Rodeo mine in Durango. The company processed 18,791 tonnes of 3 g/t Au and 14 g/t Ag with metallurgical recoveries of 84.3% and 86.6% respectively to produce 1,390 Oz Au and 11,289 Oz Ag. It also announced its full year 2021 production guidance in which it expects to process between 125K-135K tonnes to produce 12K-14K Oz Au, and 25K-30K Oz Ag.
  • Gold Resource Corporation announced Q1, 2021 preliminary production results from its Oaxaca Mining Unit in Oaxaca. The company produced 5,019 Oz Au, 253,061 Oz Ag, 855.7K Lb Cu, 2.6M Lb Pb, and 7M Lb Zn.
  • McEwen Mining Inc., reported the production of 1,300 Oz AuEq (GEOs) from residual leaching at El Gallo mine in Sinaloa during the first quarter of 2021. 

ON FINANCING

  • Colibri Resource Corporation granted 1.9M incentive stock options to officers, directors, and consultants. The options have a term of five years at an exercise price of $0.10 per share (Evelyn project, Sonora). 
  • Empress Royalty Corp., granted 8.9M stock options to directors, officers, consultants, and employees. The options are exercisable for up to five years at a price of $0.5 per share and will be vested for a period of three years. (Pinos project, Zacatecas).
  • Pantera Silver Corp., applied to trade on the OTCQB Venture Market operated by the OTC Markets Group Inc. in New York. The Company’s shares will continue to trade on the TSX Venture Exchange under the symbol “PNTR” (The Nuevo Taxco Silver project, Guerrero).  
  • Sonoro Gold Corp., closed its oversubscribed non-brokered private placement for gross proceeds of $3,111.045. Net proceeds will be used to fund ongoing development plans at its Cerro Caliche project, including completion of a metallurgical testing, preparation of a NI 43-101 resource update and a PEA, as well as for property maintenance payments, and  for corporate and general administrative expenses.

ON RESOURCES AND DEVELOPMENT

  • Discovery Silver Corp., presented results from 13 diamond holes collared at its Cordero project in Chihuahua. Significant mineralized  intercepts were encountered in hole C20-405 with 65 g/t Ag, 0.05 g/t Au, 1.2% Pb, and 1.3% Zn (165 g/t AgEq) over 128.2m, including 109 g/t Ag, 0.06 g/t Au, 2% Pb, and 1.9% Zn (263 g/t AgEq) over 26.1m; hole C21-414 with 37 g/t Ag, 0.04 g/t Au, 0.8% Pb, and 1% Zn (110 g/t AgEq) over 110m, including 65 g/t Ag, 0.05 g/t Au, 1.6% Pb, and 1.4% Zn (184 g/t AgEq) over 51.8m; and hole C20-407 with 78 g/t Ag, 0.08 g/t Au, 1.3% Pb, and 3.6% Zn (279 g/t AgEq) over 27.4m. The results from this program will be incorporated in a new resource estimate and revamped PEA in the second half of the year.
  • Excellon Resources Inc., reported underground expansion and exploration drilling results from the Guadalupe North, 623, NE-1 and NE-1S Mantos at its Platosa mine in Durango. Highlights include hole EX21UG525 with 618 g/t Ag, 10.1% Pb, and 12% Zn (1,293 g/t AgEq) over 6.5m; hole EX21UG564 with 688 g/t Ag, 14.5% Pb, and 14.9% Zn (1,571 g/t AgEq) over 4.6m; and hole EX20UG522A, with 359 g/t Ag, 4.9% Pb, and 15.9% Zn (1,031 g/t AgEq) over 4.6m, including 573 g/t Ag, 8.6% Pb, and 21.5% Zn (1,531 g/t AgEq) over 1.3m. “Drilling continues to outline and expand mineralization within and around the Platosa deposit with new opportunities identified in the historically-mined Guadalupe North Manto”.
  • Sierra Metals Inc., announced an investment of USD $28M for the construction of an iron ore processing plant expected to produce approximately 500K tonnes per year of magnetite concentrate at its Bolivar mine in Chihuahua. Engineering and test work of the final process is currently underway, and construction of the processing plant is expected to commence this June and will take approximately six months to complete.
  • Silver Tiger Metals Inc., released high-grade drilling results from its El Tigre project in Sonora. Significant high-grade mineralization was encountered in recent drilling of the Sooy vein in hole ET-21-219 with 0.29 g/t Au, 288 g/t Ag, 0.05% Cu, 0.1% Pb, and 0.2% Zn (325 g/t AgEq) over 11.8m, including 0.49 g/t Au, 4,375 g/t Ag, 0.88% Cu, 2% Pb,  and 3.5% Zn (4,668 g/t AgEq) over 0.5m; hole ET-21-217 with 0.08 g/t Au, 210 g/t Ag, 0.04% Cu, 0.03% Pb, and 0.01% Zn (221 g/t AgEq) over 7.3m, including 0.66 g/t Au, 2,595 g/t Ag, 0.41% Cu, 0.3% Pb, and 0.05% Zn (2,694 g/t AgEq) over 0.5m; hole ET-21-215 with 0.26 g/t Au, 167 g/t Ag, 0.15% Cu, and 0.4% Pb (211 g/t AgEq) over 10.1m, including 0.39 g/t Au, 961 g/t Ag, 0.78% Cu, and 1.8% Pb (1,111 g/t AgEq) over 1.1m; and hole ET-21-216 with 0.08 g/t Au, 239 g/t Ag, 0.03% Cu, 0.06% Pb, and 0.3% Zn (260 g/t AgEq) over 3.5m, including 0.24 g/t Au, 1,608 g/t Ag, 0.19% Cu, 0.3% Pb, and 2% Zn (1,721 g/t AgEq) over 0.6m. Step out drilling to the south on the Sooy Vein continues to deliver consistent high grade silver results.

ON DEALS AND CORPORATE ISSUES

  • Empress Royalty Corp., appointed a new member to its Board of Directors, and two members as Strategic and Technical Advisors (Pinos project, Zacatecas).
  • Golden Goliath Resources Ltd., held its annual general meeting of shareholders (San Timoteo property, Chihuahua).
  • Goldgroup Mining Inc., provided a legal update on its dispute with DynaResource regards the San Jose de Gracia property in Sinaloa. Goldgroup announced that the Tenth Circuit Court of Appeals rejected the appeal lodged by Texas-based DynaResource Inc., to vacate the Arbitral Award, which had found that DynaUSA had improperly diluted the Company’s interest in the San Jose de Gracia Mexican mining project, which Goldgroup had earned into pursuant to an option agreement between the Company and DynaUSA. The Circuit Court’s opinion clarifies several misleading facts previously presented in various news releases issued by DynaUSA.
  • Inomin Mines Inc., announced the hiring of two key members for its Mexican exploration program:  a community relationship representative and a senior exploration geologist (La Gitana project, Oaxaca).
  • Masivo Silver Corp., announced it is moving forward to sign a definitive agreement on several mineralized mining concessions comprising La Santa Madre project in Sinaloa. Mineralization identified by Masivo at La Santa Madre project consists of at least six parallel NE Cu-Au-Ag quartz epithermal veins varying from 3-7 m with lengths varying from 600-1,200m. Masivo has also signed a letter of interest to access 3,000 hectares of private land where part of these mining claims are located, with the right to progress to an agreement for 8,000 hectares of this private land.
  • Ridgestone Mining Inc., appointed Dante E Aguilar as its Mexican Country Manager (Rebeico project, Sonora).
  • Santacruz Silver Mining ltd., announced that the acquisition of the Zimapan mine assets from Minera Cedros, S.A.de C.V. together with the USD $17.6M loan facility from Trafigura Mexico, S.A. de C.V., are now expected to close on or about April 23, 2021.
  • Silver Bull Resources Inc., presented results from its annual general meeting of shareholders (Sierra Mojada project, Coahuila).  
  • Vizsla Silver Corp., announced the spinout of Vizsla Copper Corp., through a statutory plan of arrangement. Vizsla Silver will continue to advance its Panuco Copala silver-gold project in Mexico while Vizsla Copper will focus on the assets in BC, Canada. 

ON SOCIAL RESPONSIBILITY

  • Torex Gold Resources Inc., signed an agreement to build a new 8.5 megawatt solar plant at its Morelos property, which include El Limon Guajes mine and Media Luna project in Guerrero state.  The new plant is expected to reduce Scope 2 greenhouse gas (“GHG”) emissions by up to 8.6% using 2019 as the baseline year. In addition, it will bring benefits to the local communities since this new solar plant will create new job opportunities for daily operation and maintenance.

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, mesothermal sheeted quartz veins in an orogenic gold prospect in Sonora, Mexico.  Photo by Miguel A Heredia.

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

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By Jorge Cirett

During the 38th week of the year (September 14th to September 20th, 2020), at least 38 press releases were announced by companies working in Mexico. To note, six companies posted exploration advances on their projects, fourteen companies posted news related to financing or share structure, and six on their projects development. Companies that raised funds include Southern Silver, Oroco Resource, Comet Resources, Consolidated Zinc, First Majestic, Defiance Silver, Argonaut Gold, GoGold Resources and Silver Dollar Resources. ON MEXICO ISSUES, Fortuna Silver tries to avoid an illegal blockade from occurring at its San José mine in Oaxaca. Mexico loses positions in the 2019 Fraser Institute ranking on mining regions. Cancham points out the Mexican mining environment is facing multiple challenges. Guanajuato intends to form a Mining Cluster. Fernando Alanís, Camimmex president clearly explained how mining concessions function in Mexico. ON EXPLORATION, in Sonora, Minaurum started the second phase drilling program at its Alamos Silver project. In Sinaloa, Brigadier Gold released surface sampling results from its Picachos property. In Zacatecas, Minera Alamos released results from historical drill holes at Cerro de Oro; Alien Metals released underground and surface sampling results from San Celso and Los Campos; Advance Gold informed on the drilling (providing no results) at Tabasqueña. In Guanajuato, VanGold Mining updated on exploration/development at El Pinguico.  ON MINING, Mexus Gold is nearing the completion of a ball mill gravity gold recovery system at its Santa Elena mine in Sonora. Starcore International reported results for the last quarter. Excellon Resources provided production results for August 2020 from its Platosa mine in Durango. ON FINANCING, nine companies made announcements regarding the opening or closing of financing rounds: Southern Silver ($456 K), Oroco Resource ($7.26 M), Comet Resources (a streaming facility, up to $20 M), Consolidated Zinc (A$2 M), First Majestic (C$78 M), Defiance Silver (C$10 M), Argonaut Gold (C$10 M), GoGold Resources (C$30 M) and Silver Dollar Resources ($10.5 M). Silver Bull is going for a reverse stock split of 8 to 1. Canuc Resources and Solaris Resources are now trading at the OTCQB Venture Market. ON RESOURCES AND DEVELOPMENT, Discovery Metals released results from drilling at its Cordero project in Chihuahua. Almaden Minerals resumes exploration at its Ixtaca project in Puebla. GR Silver Mining released drilling results from its Plomosas project in Sinaloa. Magna Gold completed a pre-feasibility report on its San Francisco project in Sonora.  Excellon recommenced underground and surface drilling at its Platosa mine, Durango. SSR Mining is extending a decline to drill, from the underground, high-grade portions of the mineral resource at Pitarrilla, Durango. ON DEALS AND CORPORATE ISSUES, Sonora Metals is changing name to Sonoro Gold. Barksdale Resources informed on title issues that have promoted some changes on how the deal is structured with Tusk Resources on the San Javier project in Sonora. Southern Silver informed it has closed the transaction to acquire Electrum’s 60% interest on Cerro Las Mintas project, Durango. Odyssey Marine Exploration filed the First Memorial on a case against Mexico, related to the lack of issuance of an environmental permit to mine a large off-shore phosphate resource. Excellon Resources informed on the results of litigation relating to a land surface purchase near its Platosa mine in Durango. ON SOCIAL RESPONSIBILITY. Fresnillo PLC, Fortuna Silver and Frisco informed on sustainability, health, safety, environment, social and governance programs.

ON MEXICO ISSUES

  • Compañía Minera Cuzcatlán (Fortuna Mines), called for the civil organizations promoting an illegal blockage of the San José mine in Oaxaca to reconsider its program. The blockage is being called to pressure the authorities on the delivery of resources, an issue completely unrelated to the mining company.
  • In 2019 Mexico fell nine positions, according to the Fraser’s Institute. Mexico’s shine to attract mining investment is getting dull with the lack of confidence and certitude derived of the president’s declarations on the review of mining concessions and the recent disappearance of the Mining Sub Secretary. The federal government has been clear, under his tenure no mining concessions are to be issued. The president has stated that up to 40% of the country ground has been under mining concessions, and that amount should suffice (for mining companies) for thousands of years.
  • Armando Ortega, president of the Mining Task Force of the Cámara de Comercio de Canadá en México (Cancham) stated that the mining environment in Mexico is not propitious because political signals of ideological nature are not favorable to investment, and some measures announced by the government are worrisome. Among the factors supporting its points are: initiatives to forbid open pit mining; initiatives to enlarge natural protected areas, encroaching to areas of active mining; the initiative to change the law on water use, changing its regime from concession to license; the stated fact by the president to not to grant a single mining concession during his tenure; the disappearance of the Mining Sub Secretary; the extortion by unions to companies, exemplified by the tricky wining by Napoleón Gómez Urrutia of the collective contract at is Cosalá mine complex in Sinaloa.  
  • According to a Camimex post, projects that are coming into production include an expansion at Los Filos, Guerrero (Equinox Gold); Ixtaca, Puebla (Almaden Minerals); Camino Rojo, Zacatecas (Orla Mining); Las Chispas, Sonora (SilverCrest Metals); Santana in Sonora, La Fortuna in Durango and Cerro de Oro in Zacatecas (Minera Alamos).  
  • Guanajuato announced its intention to conform a Mining Cluster.
  • Fernando Alanís, Camimex (Cámara Minera de México) president, explained some facts on how mining concessions function in Mexico. According to the constitution everything under the surface is property of the Nation, hence the permit needed to extract gas, oil, water or minerals by individuals or companies, permit that is precisely a concession. In mining the concession is a permit to explore and mine an ore deposit if found, it provides no rights for surface rights, reason for which an agreement has to be negotiated with the surface owner to access the land. He stressed that having a mining concession is no guarantee of finding an ore deposit. To keep a mining concession, the concessionaire has to pay every six months a due per hectare, due that increases with the age of the concession, to avoid speculative land grabs; and also the concessionaire has to comply with a minimum yearly investment that also increases with the age of the concession, again to avoid speculation. According to the DGM (Dirección General de Minas) 20.7 M hectares are concessioned in México, out of almost 200 M hectares in the country, meaning about 10.35% of the country is concessioned, of which only 1 M hectares include a project in exploitation. The government granting of mining concessions is the more efficient way to exploit the natural resources, letting others run the risks and expensive investments of exploration. The government receives the due payments, and in case of an ore body being found and a mine built, receive taxes for its operation. Mining is the economic activity that has the steepest rate of taxes and dues, which add up to 55% on the income of mining firms.

ON EXPLORATION

  • Brigadier Gold Ltd. released sampling results from two vein systems at its Picachos property in Sinaloa. Highlighted results comprise 7 m @ 160 gpt Ag, 0.6 gpt Au; 3 m @ 205 gpt Ag, 0.2 gpt Au; 0.5 m @ 356 gpt Ag, 6.6 gpt Au at the Garabato vein system, and 1.6 m @ 1.9 gpt Au, 98 gpt Ag, 0.6% Cu, 3.7% Pb, 1.5% Zn; 1.0 m @ 21.3 gpt Au, 5 gpt Ag, 3.2% Pb, 0.8% Zn; 0.2 m @ 56.7 gpt Au, 288 gpt Ag, 1.9% Cu, 5.9% Pb, 1.3% Zn at El Pino. The Garabato veins are coincident with a 20 ha soil anomaly that returned up to 36 ppm Ag, 366 ppm Cu, 1,049 ppm Pb, 1,184 ppm Zn. Three basins draining the El Pino vein system show stream sediment anomalies of up to 1.72 ppm Au, 0.9 ppm Ag, 597 ppm Pb and 329 ppm Zn.
  • Minaurum Gold Inc. announced the start of a 20,000 metre Phase II drilling program at its Alamos Silver project in Sonora. The program will commence with one rig offsetting an intercept of 8.25 m @ 1,760 gpt Ag on the Europa-Guadalupe veins, while a second rig will test targets at Promontorio, where recently acquired historical data revealed intercepts of up to 12.2 m @ 710 gpt Ag (Note.- Take a look to the press release, it is worth it).
  • Minera Alamos Inc. released additional historic drill data on the Cerro de Oro project in Zacatecas. The reverse circulation holes were drilled by a private operator in 2017-2018, to refine the previous drilling by Noranda in the 1990’s. Some of the highlighted results comprise 48 m 0.70 gpt Au; 112 m @ 0.42 gpt Au, 40 m @ 0.51 gpt Au; 64 m @ 0.38 gpt Au; 42 m @ 0.42 gpt Au; 100 m @ 0.42 gpt Au; 54 m @ 0.76 gpt Au; 102 m @ 0.38 gpt Au; 72 m @ 0.47 gpt Au; 56 m @ 0.47 gpt Au; 66 m @ 0.33 gpt Au;  96 m @ 1.10 gpt Au; 42 m @ 0.50 gpt Au.
  • Alien Metals Inc. informed on underground and surface sampling results from its San Celso and Los Campos projects in Zacatecas. At San Celso, underground sampling confirmed 2006 sample results, like 0.9 m @ 477 gpt Ag (0.5 m @ 422 gpt Ag on previous sample) and 1.4 m @ 225 gpt Ag (1.6 m @ 335 gpt Ag on previous sample). At Los Campos, dump sampling returned up to 0.3 gpt Au, 254 gpt Ag, 0.12% Pb, 0.07% Zn. The Nueva Andromeda claim, adjacent to San Celso, has been optioned.
  • VanGold Mining Corp. updated on exploration at its El Pinguico project in Guanajuato. Approximately 40 m have been sampled on a recently cleared section of the shaft, a 3D model is being generated, sampling for XRF sampling are being collected on #4 adit, and trenching of additional surface exposures and clearing of the #7 adit are being performed.
  • Advance Gold Corp. reported on the drilling done at its Tabasqueña project in Zacatecas. “Of the four holes drilled to date into the 3500-metre continuous IP chargeability anomaly, drill hole AGT-16 has encountered the best mineralization, including a 10.7 metre sulphide zone. Mineralization in this hole has zones of semi-massive pyrite, containing 15 to 30% pyrite, together with up to 3% sphalerite and some galena (core photos shown below and on company website). The first three holes intersected stacked lenses of disseminated sulphides and are around 3000 metres to the south of AGT-16”.

ON MINING

  • Mexus Gold US. is nearing the completion and test running of its high grade ball mill gravity gold recovery system at its Santa Elena mine in Sonora (not to mistake with First Majestic’s Santa Elena mine, also in Sonora). The company will mill material from a quartz vein with a 10 gpt Au cutoff, and recover the gold through the gravity system, while lower grade ore continues to be placed on the heap leach.
  • Starcore International Mines Ltd. Reported results of the first quarter ended July 31, 2020. Production during the period at its San Martin mine in Queretaro included the milling of 59.1 K tonnes @ 1.70 gpt Au, 29.2 gpt Ag, recovering 88.8% Au, 56.5% Ag, to produce 2.9 K Oz Au, 32.5 K Oz Ag.
  • Excellon Resources Inc. provided August 2020 production results from its Platosa mine in Durango. During the month 7.6 K tonnes were mined, 8.5 K tonnes processed @ 451 gpt Ag, 4.95% Pb, 6.76% Zn, recovering 86.8% Ag, 78.8% Pb, 78.9% Zn, to produce 106.7 K Oz Ag, 729.1 K Lb Pb, 997.2 K Lb Zn.

ON FINANCING

  • Silver Bull Resources. management approved a 1-for-8 reverse stock split of the of the company’s issued and outstanding common stock (Sierra Mojada, Coahuila).
  • Southern Silver Exploration Corp. closed the recently announced non-brokered private placement for gross proceeds of $456 K (Cerro Las Minitas, Durango).
  • Oroco Resource Corp. closed a non-brokered private placement for gross proceeds of $7.26 M (Santo Tomás, Sinaloa).
  • Canuc Resources Corp. announced it is now trading its shares on the OTCQB Venture Market (San Javier, Sonora).
  • Comet Resources Ltd. executed a binding agreement with Raptor Capital International Ltd. “for the provision of a streaming facility to provide a minimum of US$6m and up to US$20m in funding for development of the Santa Teresa High Grade Gold Project in Baja California”.
  • Southern Silver Exploration Corp. informed on private placements recently closed. A brokered offering for gross proceeds of C$10 M followed by a non-brokered offering for gross proceeds of C$4 M and a non-brokered private placement for gross proceeds of $456 K (Cerro Las Minitas, Durango).
  • Consolidated Zinc Ltd. Intends to undertake “a fully underwritten non-renounceable pro rata entitlement offer on the basis of three (3) new fully paid ordinary shares (“New Shares”) for every eleven (11) Shares held on 24 September 2020”. The intention is to raise approximately A$2 M (Plomosas, Chihuahua).
  • First Majestic Silver Corp. closed its previously announced bought deal with Eric Sprott for gross proceeds of CDN$78 M (Santa Elena, Sonora; San Dimas, Durango).
  • Solaris Resources Inc. announced its common shares have been approved to trade on the OTCQB Venture Market, effective September 17, 2020 (La Verde, Michoacan).
  • Defiance Silver Corp. closed the previously announced brokered private placement for gross proceeds totaling C$10 M (Veta Grande, Zacatecas).
  • Argonaut Gold Inc. entered into an agreement with a syndicate of underwriters with a bought deal private placement financing for aggregate gross proceeds of C$10 M (La Colorada, Sonora).
  • GoGold Resources Inc. closed its previously announced bought deal offering for gross proceeds of C$30 M (Los Ricos South, Los Ricos North, Jalisco).
  • Silver Dollar Resources Inc. completed its previously announced non-brokered private placement to raise $10.5 M in gross proceeds (La Joya, Durango).
  • Silver Viper Minerals Corp. announced that it has elected to accelerate the expiry date of the common share purchase warrants issued on September 24, 2019, to the new date of October 8, 2020 (La Virginia, Sonora).

ON RESOURCES AND DEVELOPMENT

  • Discovery Metals Corp. released results from four diamond drill holes targeting bulk-tonnage mineralization in the South Corridor at its Cordero project in Chihuahua. Highlighted intercepts comprise 401.7 m @ 49 gpt Ag, 0.07 gpt Au, 1.0% Pb, 1.1% Zn ( including 30.3 m @ 57 gpt Ag, 0.10 gpt Au, 0.8% Pb, 2.2% Zn; 112.3 m @ 96 gpt Ag, 0.08 gpt Au, 2.0% Pb, 1.8% Zn; 44.2 m @ 84 gpt Ag, 0.10 gpt Au, 1.8% Pb, 2.0% Zn); 5.1 m @ 231 gpt Ag, 0.21 gpt Au, 2.0% Pb, 2.6% Zn; 15.7 m @ 111 gpt Ag, 0.06 gpt Au, 1.7% Pb, 0.2% Zn.
  • Almaden Minerals Ltd. announced its intention to resume exploration in the area of the Ixtaca project in Puebla. “This program is starting with a desktop review of exploration data previously gathered, which is expected to lead to further field work in the near-term which may include mapping, surface sampling, geochemical stream silt and soil sampling, and geophysics. These data will be used to design a future drill program”.
  • GR Silver Mining Ltd. Released results from its surface core drilling program at Plomosas, Sinaloa. The drilling completed to date has delineated a 700 m mineralized zone with multiple veins including a low angle Pb-Zn-Ag rich hydrothermal breccia and high angle low sulfidation vein and stockwork systems. Highlighted true width intercepts comprise 6.0 m @ 85 gpt Ag, 0.4 gpt Ag, 1.1% Pb, 0.6% Zn (including 2.5 m @ 172 gpt Ag, 0.9 gpt Au, 2.7% Pb, 1.4% Zn); 22.3 m @ 48 gpt Ag, 0.1 gpt Au, 0.3% Pb, 0.6% Zn.
  • Magna Gold Corp. released the results of its recently completed pre-feasibility report on its San Francisco mine in Sonora. The report presents a base case at $1,450 per Oz Au with an NPV (Net present Value) of $80 M at 5% discount rate, producing 69 K Oz Au per year from 2021 to 2027 at an average all-in sustaining cost cash cost of $1,204 per Au Oz and no major capital required for resuming mining. Mineral reserves stand at 47.6 M tonnes @ 0.495 gpt Au, containing 758 K Oz Au and mineral resources (including mineral reserves) comprise 99.7 M tonnes @ 0.446 gpt Au, containing 1.43 M Oz Au. The inferred resources category includes 11.4 M tonnes @ 0.467 gpt Au, containing 171 K Oz Au.
  • Excellon Resources Inc. “has recommenced underground and surface drilling at the Platosa Mine and broader Platosa Property, respectively. Underground exploration is focused on expanding and further defining known mineralization. Surface exploration is focused on near mine targets around the Platosa deposit and the Jaboncillo and PDN targets north of the mine. Jaboncillo, 11 kilometres northwest of the Platosa Mine, is a Platosa-style target with a 4 x 4 kilometre alteration footprint, multiple times the size of the Platosa footprint, where the Company intersected near-surface gossans in 2019 drilling. PDN, two kilometres north of the Platosa Mine, is a skarn-style geophysical target that may be associated with the skarn discovery made in 2012 at Rincón del Caído”.
  • SSR Mining Inc. informed it is planning to spend $5 M in 2020 at Pitarrilla, Durango. The investment is part of a “program to extend an existing decline to provide drill access to the underground Mineral Resources. An improved geological model from work completed in 2019 indicates strong potential to better define known, high-grade mineralized veining associated with steeply dipping rhyolite dyke contacts. Extending the underground ramp provides access for tighter spaced drilling at better orientations to test the rhyolite dykes and veins for continuity. If infill drilling confirms the continuity of high-grade mineralized structures, there would be potential to enhance the grades of existing Mineral Resources“.

ON DEALS AND CORPORATE ISSUES

  • Sonoro Metals Corp. changes name to Sonoro Gold Corp. on September 9, 2020 (Cerro Caliche, Sonora).   
  • Barksdale Resources Corp. informed that “Following a detailed due diligence campaign, the Company identified certain title issues with respect to three of the twelve mining concessions comprising approximately 307.46 hectares of the total lands covered under the option. Tusk Exploration Ltd (“Tusk”) is in the process of rectifying these title issues and expects the process to be completed in 2021. Until the title issues have been rectified, Barksdale and Tusk have agreed to defer 35% of the Year 1 and Year 2 option cash and share payments” (San Javier, Sonora).
  • Southern Silver Exploration Corp. closed the transaction with Electrum Global Holdings L.P. to acquire Electrum’s 60% indirect working interest in the Cerro Las Minitas project in Durango. Southern Silver must pay Electrum US$15 M in a combination of cash and common shares, of which US$5 M and 2.34 M shares and a credit of C$1.35 M deposit have been paid. Remaining are US$2 M and shares equal to US$2 M to be paid on March of 2021 and US$2 M and shares equal to US$2 M to be paid on September of 2021.
  • Odyssey Marine Exploration Inc. filed “the First Memorial in the case brought against Mexico under the North American Free Trade Agreement (NAFTA) on its behalf and on behalf of subsidiary Exploraciones Oceánicas (ExO), alleging that Mexico wrongfully denied environmental approval of the ExO Phosphate project in breach of NAFTA ….. Odyssey seeks damages of more than $2.3 billion including interest from April 2016 to the date of the First Memorial’s submission”.
  • Excellon Resources Inc. informed an appeal on the acquisition of 295 hectares north of the Platosa mine (in Durango) was denied by an appeals court in Mexico. “The Company does not consider the land material to its mining operation or exploration activities. The decision does not impact Excellon’s mineral rights and the Company does not expect it to have any impact on its operations”.

ON SOCIAL RESPONSIBILITY

  • Fortuna Silver Mines (San José mine in Oaxaca) has added a new sustainability section on its website, where the company´s sustainability approach is expressed, as well as its environmental, social, and governance (ESG) management and performance.
  • Great Panther Mining Ltd. announced the publication of its first sustainability report highlighting the progress, initiatives and commitments in the areas of health, safety, environmental, social, and governance management.
  • Fresnillo PLC, Minera San Xavier and Frisco informed on health and community programs on the areas of their respective projects.

Content like what you have just read can be seen at https://gambusinoprospector.com/ and at LinkedIn’s Mexico Mineral Exploration Group. On the image below: Opaline silica layer in the vadose zone of a low sulfidation system in Queretaro. Picture by Jorge Cirett.

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

/ Gambusino Prospector / Leave a comment

IMG_1740 (2)

By Jorge Cirett

During the 8th week of the year (February 17th to February 23rd, 2020), at least 35 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, the Sonora Economy Secretariat remarked that several investments are to strengthen the mining industry in 2020. Camimex pointed that mining companies are to invest more than US$200 M in exploration during 2020. Grupo Mexico is to return to the government the mining concession on which the disaster struck Pasta de Conchos mine is located. Camimex is to pursue its “zero accidents” goal. ON EXPLORATION, in Sonora, Colibri Resources has received the permit to drill at the Evelyn project; Riverside Resources reported on field work and sampling at Los Cuarentas; Aloro received a new drilling permit for its Los Venados project. In Chihuahua, Kootenay Silver commenced the phase II drilling program at its Columba project. In Durango, Commander Resources reported on a geophysical survey at Pedro’s project. In Zacatecas, Excellon Resources informed on the exploration status of its Evolución project. In Guanajuato, Vangold secured land access and land use permits on its El Pinguico project. In Jalisco, GoGold Resources launched a second exploration project at Los Ricos District in Jalisco: Monte El Favor.  ON MINING, Starcore International, Americas Gold and Silver,  Torex Gold, First Majestic Silver, Pan American Silver and Fortuna Silver reported Q4 and full year 2019 financial and/or production results. ON FINANCING, Hecla Mining is to redeem $475 M of 7.25% senior notes. Canuc Resources, San Marco Resources and Ridgestone Mining closed various stages of non-brokered private placements for $850 K, C$784.8 K and $715.2 K, respectively. Kootenay Silver is now on the 2020 TSX Venture 50tm. ON RESOURCES AND DEVELOPMENT, Golden Minerals announced promising results from metallurgical test work on concentrates from its Velardeña property. Excellon informed on exploration results on its Platosa mine in Durango. SilverCrest Metals announced a new discovery of a high-grade zone on another vein of the Babicanora area of its Las Chispas property in Sonora. Coeur Mining and Alamos Gold reported mineral reserves and resources to the end of 2019, including figures from Palmarejo (Chihuahua) and the Mulatos District (Sonora), respectively. Goldplay Exploration provided an update on drilling at San Marcial, Sinaloa. ON DEALS AND CORPORATE ISSUES, Tamino Minerals filed a law suit against an individual, in Sonora. Telson informed on the resignation of its CEO, Jose Antonio Berlanga, and the appointment of Ralph Shearing as interim CEO. Sonoro financing discussions were interrupted by the Coronavirus outbreak in China. Mexican Gold and New Found Gold terminated their binding agreement for the acquisition of New Found Gold. GoGold entered into an agreement to acquire The Monte del Favor project in the Los Ricos District in Jalisco. ON SOCIAL RESPONSIBILITY. Fresnillo PLC supports three teams in a robotic regional fair. Grupo Mexico supports social and infrastructure projects in Sombrerete, Zacatecas, with over 300 activities that benefit 3,00 inhabitants. Fresnillo PLC and Frisco are among the companies that integrate the Environmental Protection Club in Zacatecas.).

ON MEXICO ISSUES

  • Jorge Vidal, head of Sonora’s Secretaría de Economía (Economy Secretariat), stated that several investments are to strengthen the mining industry during 2020 in Sonora. He pointed that the investment by Bacanora minerals in the lithium project in Bacadehuachi is one of these, and another one is the investment of the Buenavista zinc project in Cananea, which is to generate 500 jobs with the investment of MXN$350 M pesos (US$18.8 M).
  • Mining companies are to invest more than US$200 M in exploration in 2020. Fresnillo is to reduce its exploration budget to US$135.1 M, from US$150 M on 2019, with about half of those funds to be used in the conversion of resources to reserves. Pan American Silver focuses on brownfield exploration with a budget of US$20 M for the year, on which La Colorada Skarn is to see a 44,000 m drilling program. First Majestic has an exploration budget of US$28.2 M, to be spent in San Dimas (Durango), Santa Elena (Sonora), La Encantada(Coahuila), La Parrilla (Durango) and Del Toro (Zacatecas). Torex Gold is to conduct an infill drilling program that will cost US$13 M on its Media Luna project (Guerrero). Agnico Eagle is to spend US$33.9 M in exploration during 2020, highlighting the funding of the Santa Gertrudis project in Sonora with US$10.4 M and a 42,000 m drilling program at its Pinos Altos mine in Chihuahua.
  • Grupo Mexico is to return to the government the mining concession on which the Pasta de Conchos mine is located. The move is in response to the presidential request to facilitate the retrieval of the remains of over 65 miners deceased in 2006 on the mine located in Coahuila.
  • The Cámara Minera de México (Camimex) vowed to pursue the “zero accidents” goal, pointing that in 2018 the associated companies reported an accident rate of 1.63, which is 3.7% lower than in 2017, and below the national average of 2.04 registered by the Instituto Mexicano del Seguro Social (IMSS).

ON EXPLORATION

  • Excellon Resources Inc. informed on exploration of its 45,000 hectares Evolución property in Zacatecas. Highlights include the expansion of the Lechuzas zone along strike and down dip, and broad intersections of Ag-Pb-Zn, like: 18.7 m @ 27 gpt Ag, 0.8% Pb, 1.1% Zn, 0.1 gpt Au (103 gpt AgEq), including 2.0 m @ 105 gpt Ag, 3.5% Pb, 4.2% Zn, 0.3 gpt Au (416 gpt AgEq); 1.5 m @ 290 gpt Ag, 6.9% Pb, 5.9% Zn, 0.2 gpt Au (779 gpt AgEq); 4.5 m @ 51 gpt Ag, 1.9% Pb, 2.9% Zn, 0.1 gpt Au (244 gpt AgEq); 3.3 m @ 55 gpt Ag, 1.1% Pb, 1.9% Zn (172 gpt Ag). Excellon plans to incorporate all recent work into an updated mineral resource estimate for the project.
  • Kootenay Silver Inc. has commenced a 7,000 m phase II core drilling program at its Columba project in Chihuahua. The follow up drilling will focus on the results of last year’s 41-hole, 6,853 m program which targeted six different veins on the property. Highlighted results from that program comprise: 1.15 m @ 775 gpt Ag; 4.83 m @ 230 gpt Ag; 2.90 m @ 519 gpt Ag; 11.0 m @ 133 gpt Ag (including 5.0 m @ 245 gpt Ag); 2.1 m @ 699 gpt Ag; 1.75 m @ 755 gpt Ag, 1.16 gpt Au; 6.25 m @ 244 gpt Ag; 11.5 m @ 415 gpt Ag (including 4.0 m @ 721 gpt Ag); 4.63 m @ 301 gpt Ag; 39.9 m @ 159 gpt Ag (including 7.45 m @ 650 gpt Ag).
  • Colibri Resource Corp. informed it has received the required drilling permits for its Evelyn project in Sonora. Drill pad construction and other required infrastructure are to commence immediately, followed by drilling.
  • Commander Resources Ltd. reported results from a 70 line-km induced polarization survey (IP) at the Pedro’s project in Durango. The 1,750 ha project was acquired in 2006 from Bearing Resources Ltd. Hematite stained silica rich ridges of angular chalcedony fragments and silicified sedimentary rocks within an angular coarse breccia comprise the outcrops within the Ahuichila conglomerate, within a soil anomaly 4 Km by 1 km and rock chip samples of up to 2.3 gpt Au. Past drilling focused on a Carlin target intercepted up to 10.5 m @ 0.51 gpt Au in oxidized silicified conglomerate.
  • Vangold Mining Corp. has secured a surface land access agreement, and a surface land use agreement for its El Pinguico mine in Guanajuato. The 15-year land access agreement was signed with the Ejido Calderones, providing a short access route to the project, whereas the land use permit was signed with a local land owner for 89.6 hectares.
  • Riverside Resources Inc. reported on field work and sampling at its Los Cuarentas project in Sonora. Selective rock sampling from dumps, float, channel and rock chips returned five of sixteen samples with more than 5 gpt Au: 25.7 gpt Au, 4 gpt Ag; 10.2 gpt Au, 9 gpt Ag; 6.8 gpt Au, 65.1 gpt Ag, 6.27 gpt Au, 120 gpt Ag; 5.3 gpt Au, 6 gpt Ag; 5.1 gpt Au, 75 gpt Ag. Three primary targets have been identified for a prospective drill program in 2020: Santa Rosalia, Santa Rosalia Sur and El Sombrero.
  • GoGold Resources Inc. launched a second exploration project located on the Los Ricos District, called Monte del Favor, in Jalisco. Gogold now owns 35 concessions covering 22,493 hectares in a 35 km trend. The new concessions come with a legacy database of 50 drill holes with highlighted intercepts of: 24.4 m @ 6.4 gpt Au, 1,629 gpt Ag; 28.3 m @ 3.1 gpt Au, 150 gpt Ag; 6.1 m @ 1.1 gpt Au, 201 gpt Ag; 6.1 m @ 2.8 gpt Au, 174 gpt Ag; 20.3 m @ 0.4 gpt Au, 225 gpt Ag.
  • Aloro Mining Corp. informed a new drilling permit has been granted by SEMARANT (The Secretariat of Environment and Natural Resources) for its Los Venados project in Sonora. The permit granted the drilling of 15 holes and the construction of up to 3.38 Km of drill roads. Drilling is to focus in the south area of the project, where a hole cut 32 m of blind strong silicic alteration with brecciated vuggy silica an sulfides, with 7.6 m @ 1.13 gpt Au, 32 gpt Ag.

ON MINING

  • Starcore International Mines Ltd. released production results for the quarter ending on January 31, 2020. In its San Martin mine in Queretaro, 58.3 K tonnes were milled @ 1.84 gpt Au, 30 gpt Ag, recovering 90.1% Au, 50.9% Ag, to produce 3,425 Oz AuEq.
  • Americas Gold and Silver Corp. presented production figures from 2019 and guidance for 2020 of its mining operations, including figures from its Cosalá property in Sinaloa. At Cosalá, 613.8 K tonnes were processed @ 50 gpt Ag, to produce 572 K Oz Ag, 43.3 M Lb Zn and 16.4 M Lb Pb, or 4.68 M Oz AgEq, at cash cost ($18.31) and AISC ($10.90) per Oz Ag produced. Improved access to the Upper Zone at the San Rafael mine will tap higher silver grades in 2020.
  • Torex Gold Resources Inc. reported fourth quarter and fill year 2019 financial and operating results. For the last quarter of 2019, Torex Gold produced 121,151 Oz Au at its El Limón-Guajes mine in Guerrero, at cash cost $617 per Oz and all-in sustaining cost of $767 per Oz, generating EBITDA of $102.2 M and repaying $82.5 M of debt during the period. For the year, Torex produced 454,811 Oz Au at cash cost of $619 per Oz and an AISC of $805 per Oz Au, generating EBITDA of $330.3 M and repaying $164.4 M of debt. Total debt now stands at $174.9 M, while cash at hand is $161.8 M. The Media Luna project resource estimate was updated to 2.24 M Oz AuEq at a grade of 5.5 gpt Au in the indicated category and 4.23 M Oz AuEq at 4.23 gpt Au in the inferred category.
  • First Majestic Silver Corp. announced financial results for the Q4 and year 2019. During the quarter 626.6 K tonnes were processed to produce 3.35 M Oz Ag, 33,176 Oz Au, 0.9 M Lb Pb, or 6.23 M Oz AgEq at cash cost $3.37 per Oz and an AISC of $12.25 per Oz. The production figures for the year are in the table below. The company ended 2019 with cash and cash equivalents of $169 M. First Majestic production 20191
  • Pan American Silver Corp. reported financial results for the year 2019, including figures from its Mexican operations. At La Colorada mine in Zacatecas 768.7 K tonnes were milled @ 361 gpt Ag, 3.10% Zn, 1.65% Pb to produce 8.2 M Oz Ag, 4.61 K Oz Au, 20.97 K tonnes Zn, 11.15 K tonnes Pb, at cash cost $4.30 and AISC of $5.00 (net of by-products). At Dolores, in Chihuahua, 6.78 M tonnes were place on the heaps @ 38 gpt Ag, 0.60 gpt Au, to produce 5.1 M Oz Ag, 117.6 K Oz Au at a cash cost of $3.09 and an AISC of $15.45.
  • Fortuna Silver Mines, Inc. provided 2020 production, cost and capital expenditure guidance for 2020, including figures for its Mexican operations. At San Jose, in Oaxaca, the company aims to produce between 6.6 and 7.3 M Oz Ag, and between 41 and 45 K Oz Au, at a cash cost of US$65.6 to US$72.5 per tonne, and an AISC between US$9.6 to US$11,7 per Oz AgEq. The plan is to process 1.06 M tonnes @ 223 gpt Ag, 1.39 gpt Au, with a capital investment of US$17.1 M, including US$12.2 M for sustaining capital expenditures and US$4.9 M for brownfields exploration programs which include 17,600 m of drilling.

ON FINANCING

  • Hecla Mining Co. announced its agreement to sell $475 M aggregate principal amount of 7.25% senior notes. The notes will mature in February 2028, with the company intending to use the net proceeds together with cash on hand to redeem all of its outstanding 6.875% senior notes due 2021. (San Sebastián, Durango).
  • Canuc Resources Corp. closed a non-brokered private placement for gross proceeds of $850 K, with three officers of the company participating (San Javier, Sonora).
  • San Marco Resources Inc. closed its over-subscribed non-brokered placement, raising C$784.8 K (Espiritu, Sonora).
  • Ridgestone Mining Inc. closed the first tranche of the non-brokered private placement to raise $715.2 K on gross proceeds (Rebeico, Sonora).
  • Kootenay Silver Inc. has been recognized in the 2020 TSX Venture 50tm as one of the top 50 performing companies on the TSX Venture Exchange (Columba, Chihuahua).

ON RESOURCES AND DEVELOPMENT

  • Golden Minerals Co. announced promising results of metallurgical test work on pyrite-arsenopyrite flotation concentrates from its Velardeña properties in Durango. “Gold and silver recoveries of 91% and 92%, respectively, were obtained from cyanide leaching of the bio-oxidized concentrate samples. BIOX* achieved 93% oxidation on the concentrate sample in batch tests, which the Company believes should translate to a 5 to 6-day retention time in a commercial bio-oxidation plant”.
  • Excellon Resources Inc. informed on exploration results at its Platosa mine in Durango. Surface drilling of the NE-1S manto returned high-grade intersections, like 6.6 m @ 1,178 gpt Ag, 6.7% Pb, 8.4% Zn, 0.2 gpt Au. A large hydrothermal system was discovered 11 km from the Platosa mine at the Jaboncillo target, where drilling is aimed to start in the first half of 2020.
  • SilverCrest Metals Inc. announced a new discovery and additional drill results from the Babicanora Norte vein at its Las Chispas property in Sonora. The discovery drill hole intercepted 2.0 m (tw) @ 6,418 gpt AgEq on a faulted extension that received the name of Area 200, on the Babicanora Norte vein, which is now the highest-grade vein in the project. The initial high-grade footprint of this zone is 500 long by 125 m in height, on the vein that is now known for more than 2.0 km. The area 200 shows an average estimated true width (tw) of 1.5 m @ 16.11 gpt Au, 2,166 gpt Ag (3,375 gpt AgEq). Highlighted results for this press release comprise 1.4 m @ 90.22 gpt Au, 9,422 gpt Ag (16,189 gpt AgEq); 2.4 m @ 45.71 gpt Au, 5,577 gpt Ag (9,006 gpt AgEq); 1.6 m @ 75.78 gpt Au, 7,662 gpt Ag (13,345 gpt AgEq).
  • Coeur Mining Inc. reported 2019 mineral reserves and resources, including figures from its Mexican operations. At Palmarejo, in Chihuahua, infill drilling helped replace mining depletion. Proven and probable reserves stand at 11.67 M short tonnes (st) @ 1.83 gpt Au, 135 gpt Ag; measured and indicated resources stand at 8.76 M st @ 1.49 gpt Au, 122 gpt Ag and inferred resources of 6.47 M st @ 1.77 gpt Au, 127 gpt Ag. These amount to 693 K Oz Au, 5.6 M Oz Ag as reserves, 425 K Oz Au, 34.5 M Oz Ag as measured and indicated resources and 367 K Oz Au, 26.3 M Oz Ag as inferred resources.
  • Minera Peña Colorada informed that the Peña Colorada mine in Colima received the visit of PROFEPA (Procuraduría Federal de Protección al Ambiente) and SEMARNAT (Secretaría de Medio Ambiente y Recursos Naturales) personnel to review the compliance of the company on the different permits it has received.
  • Alamos Gold Inc. Reported mineral reserves and resources to year end 2019, including figures from its Mexican Operations. Mineral reserves at Mulatos decreased by 154 K Oz to 1.56 M Oz, with mining depletion partially offset by an 81 K Oz increase at La Yaqui Grande. The exploration budget was increased to $7 M with 14,000 m of drilling planned around near mine targets as well as at La Yaqui Grande and El Carricito. A number of regional exploration targets were identified with the aid of a VTEM survey carried out in 2018.Alamos Gold Mineral Resources to 201911
  • Goldplay Exploration Ltd. provided an update on exploration and drilling of its San Marcial project in Sinaloa. The last holes of 2019 returned 28.7 m @ 92 gpt Ag, including 13.75 m @ 154 gpt Ag in the Faisanes target. At the Guacamayo target 0.60 m @ 138 gpt Ag, 0.56 gpt Au, confirm mineralization 30 m east of the current resource area. Due diligence has commenced on the potential acquisitions of the Plomosas (First Majestic Silver Corp.) and La Trinidad (Mako Mining Corp.).

ON DEALS AND CORPORATE ISSUES

  • Tamino Minerals Inc. has filed a law suit against an individual in Sonora. (El Volcán, Sonora).
  • Newmont Corp. appointed Jim Cooper as General Manager of the Peñasquito unit in Zacatecas.
  • Telson Mining Corp. informed its Chief Executive Officer and member of the Board of Directors, Jose Antonio Berlanga, has resigned due to personal reasons. Mr. Ralph Shearing has been appointed as Interim Chief Executive Officer for the company (Campo Morado, Guerrero).
  • Sonoro Metals Corp. informed discussions regarding debt finance and engineering, procurement and construction contracts with China-based EPC companies has been postponed due to the COVID-19 outbreak (Cerro Caliche, Sonora).
  • Mexican Gold Mining Corp. announced, along New Found Gold Corp., that they have mutually terminated the binding agreement to acquire all of the issued and outstanding shares of NFGC (Las Minas, Veracruz).
  • GoGold Resources Inc. entered into an agreement to acquire a second project located on the Los Ricos District, called Monte del Favor, in Jalisco. The agreement is to acquire 49% of 5 concessions in consideration for US$225 K, and an option to acquire the remaining 51% by paying US$210 K on the second anniversary. The seller will retain 1% NSR on the property, which the company may repurchase by paying US$1 M.

ON SOCIAL RESPONSIBILITY

  • Fresnillo PLC supports science, technology and youthful innovation. As part of the regional robotic fair “FIRST” on the La Laguna region, Fresnillo is to support three teams. The sponsored teams are from Turuachi, Chihuahua, Ciénega de Nuestra Señora, Durango and Fresnillo, Zacatecas. One other team from Caborca, Sonora, is to participates in an international competition in Arizona.
  • Grupo Mexico supports social and infrastructure projects in Sombrerete, Zacatecas. Every year the company performs 300 activities that benefit 3,000 inhabitants. The social programs and productive activities take place in Sombrerete, San Martin, Villa Insurgentes, Ojo de Agua, Charco Blanco, Santa Rita and José de Félix communities. Also, a seed-capital program has financed 29 projects to benefit 20 schools.
  • Peñoles, Fresnillo PLC, and Grupo Frisco among the companies to integrate the Environment Protection Club in Zacatecas. More than 25 companies are to be members of this club, promoted by the State governor, and that will also have universities (Benemérita Universidad Autónoma de Zacatecas and Instituto Politécnico Nacional), the Secretaría de Agua y Medio Ambiente and federal authorities as its memebers.

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

On the image below: The old train bridge between Nacozari and the Pilares mine, in Sonora, picture by Jorge Cirett

IMG_1740 (2)

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

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By Jorge Cirett

During the 16th week of the year (April 15th to April 21st, 2019), at least 28 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, a lower court in Puebla ruled Mexico’s mineral title system unconstitutional based on consultation not being required before issuing the title. Inhabitants of San Antonio, Baja California Sur, manifested in support for the construction of the San Antonio mine. ON EXPLORATION, In Sonora, Aztec Gold delineated several new targets using geophysics at Cervantes; San Marcos disclosed explorations plans for its properties in the year. In Jalisco, GoGold released interesting results from drilling at Los Ricos. ON MINING, Avino Silver, Sierra Metals, First Majestic, Gold Resource and Hecla disclosed production results for Q1 2019.
Fresnillo PLC presented its annual report 2018.  ON FINANCING, Ridgestone Mining, Oroco and Camrova raised $1.12 M; 800 K and 12 K respectively. Sonoro and Minaurum granted options to consultants and directors. Minaurum was named to the Venture 50tm. Sierra Metals entered into an automatic purchase plan. ON RESOURCES AND DEVELOPMENT, Goldplay reported channel sample results from a new zone at its San Marcial project in Sinaloa. SilverCrest Metals released good metallurgical results from its Las Chispas property in Sonora. ON DEALS AND CORPORATE ISSUES, Newmont Goldcorp Corp. has been delivered. Consolidated Zinc presented notice of its annual general meeting. Aura completed the sale of 80% interest of its Taviche project to Minaurum.

ON MEXICO ISSUES

  • Almaden Minerals Ltd. informed that “a lower court in Puebla State has ruled that Mexico’s mineral title system is unconstitutional because consultation is not required before the granting of mineral title………..This ruling can be appealed by both the Government of Mexico and Almaden. The Company believes that this lawsuit is part of a broad effort by special interest groups to change the mining law and there are other similar actions active across Mexico”. Almaden stated that no communities within the company’s current mining concessions on its Ixtaca project in Puebla are party to this lawsuit.
  • Fresnillo PLC. Presented its 2018 annual report. It is here recommended to all interested in the mining business in Mexico to take a look to the report (http://www.fresnilloplc.com/media/412015/fres-30452-annual-report-2018-web.pdf), especially on the section “Managing our risks”. In the said section, the risks of participating in the industry in Mexico are assessed, including those of metal prices, potential actions by the government, access to land, security, public perception against mining, safety, union relations, exploration, project performance, cyber security, environmental incidents and human resources. Although the report had in mind Fresnillo’s particular situation as one of the largest Mexican mining conglomerates, many parts of the evaluation concern risks that affect all mining enterprises in the country.
  • Some 500 inhabitants of San Antonio, in Baja California Sur, gathered in support of Argonaut Gold’s San Antonio mining project in their locality.

ON EXPLORATION

  • Aztec Minerals Corp.  and Kootenay Silver Inc. informed that interpretation of a recent magnetic and radiometric survey produced multiple porphyry copper targets on the Cervantes property in Sonora. “Cervantes has multiple porphyry cells aligned along a northeast-southwest orientation, manifested as high-level alteration footprints related to intrusive bodies. There are also prominent northwest-southeast trending magnetic anomalies found to be associated with strong alteration, gold-copper mineralization, and intrusive rocks.”   
  • GoGold Resources Inc. disclosed the results from the first two diamond holes on its Los Ricos property in Jalisco. The two diamond drill holes twinned previous RC perforations, replicating the mineralized zones, with 35.5 m @ 1.24 gpt Au, 285 gpt Ag and 27.6 m @ 1.56 gpt Au, 159 gpt Ag. The holes are part of a 10,000 m diamond drill program focused on following the high grade ore shoot down dip below the historical RC drilling.
  • San Marco Resources Inc. plans for 2019 in Sonora include target delineation at Espiritu Santo and 1068 properties, follow-up of underexplored areas at the Chunibas project, extensive participation on lotteries of released ground by the government, evaluation of multiple property acquisitions and ongoing partnership discussions of existing assets.

ON MINING

  • Avino Silver & Gold Mines Ltd. released production results from its Avino property in Durango for 2019’s first quarter. During the period production came from three sources: Avino mine, San Gonzalo mine and historic stockpiles. At Avino, 100.9 K tonnes were milled @ 41 g/t Ag, 0.48 gpt Au, 0.49% Cu, recovering 84% Ag, 71% Au, 87% Cu. At San Gonzalo (which is nearing the end of its mine life) 17.9 K tonnes were milled @ 188 gpt Ag, 0.54 gpt Au, recovering 65% Ag, 61% Au. From historic stockpiles 78.8 K tonnes were milled @ 61 gpt Ag, 0.40 gpt Au, 0.21% Cu, recovering 55%, Ag, 52% Au, 29% Cu. Total production was 1,813 Oz Au, 268.4 K Oz Ag, 1.06 M Lb Cu, or 615 K Oz AgEq.
  • Sierra Metals Inc. reported first quarter 2019 results, including figures from its Mexican mines. The Bolivar mine in Chihuahua processed 263.2 K tonnes (~3,008 tpd, targeting 3,600 tpd for Q2 2019)) grading 0.81% Cu, 19.5 gpt Ag, 0.19 gpt Au, recovering 82.2% Cu, 79.1% Ag, 67.9% Au to produce 3.87 M Lb Cu, 130 K Oz Ag, 1,100 Oz Au (or 5.08 MLb CuEq). At the Cusi mine, also in Chihuahua, 71.3 K tonnes were processed @ 105 gpt Ag, 0.15 gpt Au, 0.3% Pb, 0.3% Zn, recovering 79.5% Ag, 37.5% Au, 75.2% Pb to produce 192 K Oz Ag, 133 Au Oz, 349 K Lb Pb, no Zn.
  • Fresnillo PLC. Filed its annual report 2018. During the year Fresnillo produced 61.8 M Oz Ag, 922 K Oz Au, holding resources of 2.2 billion Oz Ag and 39.1 M Oz Au. At Fresnillo, in Zacatecas, 2.44 M tonnes were milled @ 214 gpt Ag to produce 15.1 M Oz Ag, 42,290 Oz Au, 19,619 tonnes Pb, 31,094 tonnes Zn. At Saucito, in Zacatecas, 2.79 M tonnes were milled @ 257 gpt Ag, 1.25 gpt Au to produce 19.78 M Oz Ag, 86,092 Oz Au, 22,662 tonnes Pb, 29,506 tonnes Zn, while the Pyrites Plant processed 131.8 K tonnes @ 393 gpt Ag, 2.8 gpt Au to produce 977 K Oz Ag, 3,556 Oz Au. At San Julian, in Chihuahua, 1.27 M tonnes were processed from the veins @144.1 gpt Ag, 2.0 gpt Au, to produce 5.43 M Oz Ag, 79,218 Oz Au. 2.22 M tonnes were processed from the disseminated orebody @ 154 gpt Ag, 0.1 gpt Au, 0.4% Pb, 1.4% Zn, to produce 9.2 M Oz Ag, 3,125 Oz Au, 6,101 tonnes Pb, 22,027 tonnes Zn. At Cienega, in Durango, 1.32 M tonnes were milled @ 164 gpt Ag, 1.65 g/t Au to produce 6 M Oz Ag, 66,869 Oz Au, 4,799 tonnes Pb, 5,892 tonnes Zn. At Herradura, in Sonora, 22.15 M tonnes @ 0.76 gpt Au were deposited on the heaps to produce 474,168 Oz Au, 1.52 M Oz Ag, at cash cost $504 per Au Oz (total volume hauled, 124 M tonnes). At Nochebuena, in Sonora, 18.2 M tonnes were deposited on the heaps @ 0.52 gpt Au to produce 167.2 K Oz Au, 52 K Oz Ag, at cash cost $735.4 per Oz Au (total volume hauled, 80.3 M tonnes).  The company had $580.7 M as cash and cash equivalents by the end of the year.

First Majestic Silver Corp. produced 6.3 AgEq Oz during the first quarter of 2019. During the period 831.2 K tonnes of ore were milled @ 150 gpt Ag, 1.26 gpt Au, with recoveries of 83% Ag, 96% Au, to produce 3.33 M Oz Ag, 32,037 Oz Au, 2.66 M Lb Pb, 1.26 M Lb Zn.  The ore had averages and recoveries of 287 gpt Ag, 4.18 gpt Au (93% Ag, 96% Au) at San Dimas, Durango; 121 gpt Ag, 1.87 gpt Au (89% Ag, 95% Au) at Santa Elena, Sonora; 126 gpt Ag (66% Ag) at La Encantada, Coahuila; 187 gpt Ag, 0.58 gpt Au (89% Ag, 93% Au)at San Martin, Jalisco; 54 gpt Ag, 1.8% Pb, 1.6% Zn (75% Ag by flotation, 62% Ag by cyanidation, 69% Pb, 48% Zn) at La Parrilla, Durango; 114 gpt Ag, 2.1% Pb (74% Ag, 0.7 M Lb Pb)at Del Toro, Zacatecas.

  • Gold Resource Corp. reported preliminary production results for the first quarter 2019. The Oaxaca Mining Unit (El Aguila, Arista, Switchback) produced 6,538 Au Oz, 364.6 K Oz Ag, 433 tonnes Cu, 2,153 tonnes Pb, 5,838 tonnes Zn. “The Company maintains its 2019 Oaxaca Mining Unit Annual Outlook of 27,000 gold ounces and 1,700,000 silver ounces, plus or minus 10%”.
  • Hecla Mining Co. announced preliminary production results for the first quarter of 2019. At San Sebastian, in Durango, the mill operated at 494 tpd to produce 0.4 M Oz Ag, 3,530 Oz Au. “A review of sulfide ore continues, including a bulk sample to test the capabilities of the third-party plant and the suitability of long-hole stoping for the ore body, with results expected by the fourth quarter of 2019.”

ON FINANCING

  • Ridgestone Mining Inc. completed its previously announced private placement financing, for gross proceeds of $1.12 M. The company paid 6% ($43.2 K) cash and 309 K compensation warrants. Also, 72.2 K bonus shares were issued to a director of the company, under a loan agreement (Rebeico, Sonora).
  • Sierra Metals Inc. entered into an automatic purchase plan with its designated broker (Cusi and Bolivar, Chihuahua).
  • Sonoro Metals Corp. granted 100 K incentive options to a director of the company. These options vest immediately and are exercisable at a price of $0.18 per share (Cerro Caliche, Sonora).
  • Minaurum Gold Inc. has been named to the TSX Venture Exchange Venture 50tm , the annual ranking of Canada’s top 50 emerging publicly traded companies across five industry sectors. Minaurum also granted 3.35 M common share stock options to directors, officers and consultants. The options are exercisable at a price of $0.45 for a period of 10 years from the issue date. The company also granted consultants 275 k options exercisable at a price of $0.45 for a period of five years. Ten percent vest immediately, and another 15% each semiannually (Alamos, Sonora).   
  • Oroco Resources Corp. closed a non-brokered private placement financing, raising $800 K in gross proceeds. No finder’s fee was paid (Santo Tomas, Sinaloa).
  • Camrova Resources Inc. closed the second tranche of the previously announced private placement, for proceeds of $12 K, bringing the total combined proceeds to $66 K. The third and final tranche of the Private Placement is expected to close in early May (Boleo, Baja California Sur).

ON RESOURCES AND DEVELOPMENT

  • Goldplay Exploration Ltd. reported channel sample results from a new zone at its San Marcial project in Sinaloa. The Nava zone, 500 long by 100 m wide, is extensively altered and hosts low sulphidation quartz veining and stockwork mineralization. Channel samples from the zone returned assays ranging from 1.04 gpt Au to up to 10.0 gpt Au.
  • SilverCrest Metals Inc. announced positive metallurgical results for Las Chispas project, in Sonora. “A total of 445 kg was selected from 51 core holes and nine underground samples to compile 15 different samples, based on geo-metallurgical domains which were combined into three master composites. These composites utilized 210 kilograms of mass representing a variety of grades (low, medium and high) of 500 to 2000 gpt AgEq expected during conceptual operation”. The new metallurgical tests show estimated recoveries of 98.4% to 98.9% Au and 91.4% to 94.8% Ag, using conventional methods comprised of gravity concentration and intensive leaching followed by gravity tails standard leaching.

ON DEALS AND CORPORATE ISSUES

  • Newmont Mining Corp. announced that it has extended the previously announced offers to exchange all outstanding notes issued by Goldcorp Inc. for up to two billion dollars  aggregate principal amount of new notes to be issued by Newmont, as part of the proposed arrangement on which Newmont acquires all outstaning shares of Goldcorp (Peñasquito, Zacatecas).
  • Consolidated Zinc Ltd. presented its notice of annual general meeting for the annual general meeting of shareholders to be held on 23 May 2019 (Plomosas, Chihuahua).
  • Aura Resources Inc. announced the completion of the sale of an 80% interest in its East Taviche project in Oaxaca, to Minaurum Gold Inc.. Minaurum issued 100 K common shares to Aura and paid 39.4 K on closing; additionally, Minaurum is to issue further 100 K shares on receipt of the pertinent drilling permits. The remaining 20% can be acquired by Minaurum paying CDN$1 M.
  • Newmont Goldcorp Corp. announced the successful conclusion of its transaction combining Newmont Mining Corp. and Goldcorp Inc. to form the world’s leading gold business. The company targets six to seven million ounces of steady gold production over a decades-long time horizon (Peñasquito, Zacatecas).

Content like what you have just read can be seen at https://gambusinoprospector.com/ and at LinkedIn’s Mexico Mineral Exploration Group. On the image below, glory hole developed on Inguaran, Michoacan. Picture by Jorge Cirett.

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

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Rhyolite breccia cemented by Mn oxides

By Miguel A Heredia

During the eleven week of the year (March 25th to March 3ist, 2019), at least 33 press releases were announced by companies working in Mexico, with fifteen disclosing deals and corporate issues, six informing on exploration results, four communicating financial and production results, three announcing financial rounds, three reporting on resources and development of their properties, and two discussing Mexican news. ON MEXICO ISSUES, Mazatlan, Sinaloa will be the venue for the Discovery Mining Conference 2019 from April 2 to 4. Also, Sinaloa State government expects at least US$100M of mining investment during 2019.   ON EXPLORATION, In Sonora, Colibri presented exploration results on its Evelyn and Mezquite projects. In Chihuahua, Kootenay released exploration results from its Columba Silver project and Silver Spruce identified additional drill targets at its Pino de Plata project. In Zacatecas, Advanced Gold started the third phase of drilling at its Tabasqueña project. In the State of Mexico, Impact announced drill results from the El Canelo Vein system within its Zacualpan district project. In Veracruz, Azucar Minerals presented drill results from its El Cobre project.  ON MINING, Telson reported that process testing at its Campo Morado mine in Guerrero shows increase in the production rate by 15%. Sierra Metals reported full year 2018 financial results. First Majestic reported 2018 production results from its Mexican operations. ON FINANCING McEwen closed a registered direct offering for aggregate gross proceeds of US$25M (Fenix project, Sinaloa).  Vangold closed its first tranche of the previous announced private placement for gross proceeds of $335K and increased it to $700K (El Pinguino, Guanajuato). ON RESOURCES AND DEVELOPMENT, Mexus Gold announced positive progress towards Au production at its Santa Elena project in Sonora. Goldplay filed a mineral resource estimation and technical report for its san Marcial project in Sinaloa. First Majestic provided an update of its 2018 mineral reserve and resource estimates.   ON DEALS AND CORPORATE ISSUES, Odyssey provided an update of its Mexican phosphate project in Baja California Sur. In Jalisco, GoGold acquired and consolidated 29 mining concessions in a large exploration program called Los Ricos. Fortuna Silver reported that CONAGUA has completed its investigation and issued a resolution confirming that no remediation of the nearby Coyote Creek is required (San Jose mine, Oaxaca).  The compnay also filed its fiscal 2018 annual report on form 40-F with the SEC. Minera Alamos filed its annual information form and 2018 annual report on Form 40-F. It also announced results of its annual meeting of shareholders (Mulatos mine, Sonora). GoGold announced results of their annual meeting of shareholders (Parral tailings project, Chihuahua). Consolidated Zinc provided an update regarding a land use agreement in place for its Plomosas mine in Chihuahua. Levon announced the pass away of its CEO and appointed its VP Exploration as interim CEO (Cordero project, Chihuahua). Newmont received Mexican anti-trust approval for its pending acquisition of Goldcorp. Goldcorp, along with Institutional Shareholders Services Inc., continues to recommend that its shareholders vote in favour of the completion of the arrangement. Both companies also announced successful early tender period for exchange offers and consent solicitations. Goldcorp announced support for Newmont special dividend to its shareholders. Great Panther announced resignation of its Director (Topia mine, Durango).

 

ON MEXICO ISSUES

  • Mazatlan, Sinaloa, will be the venue for the Discovery Mining Conference 2019 from April 2 to 4. Organizers expect the participation of 70 mining companies and the assistance of 1,000 national and foreigners’ people.
  • Sinaloa State, When announcing Mazatlan as the venue for the Discovery Mining Conference 2019, from April 2 to 4, the director of mining in the state, Alfredo Villegas Padilla, announced that this year at least US100M (MXP$1,937M) are expected in mining investment, both in new projects and in the continuity of some existing ones.

ON EXPLORATION

  • Colibri Resource Corporation, presented exploration results from its recently completed mapping and sampling programs on their Evelyn and Mesquite projects in Sonora. Highlights include two high grade assays of 43.9 g/t Au and 7.28 g/t Au, and several Au values varying from 0.13 to 0.57 g/t Au, from a shear zone containing orogenic type quartz veins at its Evelyn project. At El Mesquite project, the company geologists confirmed that the mineralization style is of the high sulphidation affinity and encountered Au values ranging from 17 ppb up to almost 1 g/t Au, and from 1 to 152 g/t Ag. Colibri plans to continue the mapping and sampling programs in both properties.
  • Kootenay Silver Inc., released exploration results from its ongoing mapping and surface sampling program conducted on its Columba Silver project in Chihuahua. Highlights of the recent field work include the discovery of five new veins, the high-grade values encountered in some of the veins, and the delineation of approximately 2km of strike length in new veins and veins extensions. Some of the significant sampling results are 692 g/t Ag over 0.8m, 426 g/t Ag over 0.70m, 360 g/t Ag over 1.8m, 330 g/t Ag over 2.0m, 275 g/t Ag over 3.5m, 215 g/t A over 3.0m, and 182 g/t Ag over 6.6m. The company is in the process of obtaining permits to conduct a drilling program in the first half of Q2, 2019.
  • Silver Spruce Resources Inc., identified additional drill targets at its Pino de Plata project in Chihuahua. Field examination conducted by geologists of the company identified a new zone of over 20 square kilometers of strongly altered rock located to the west of the El Terrero target. It appears to be associated with La Perla Vein and the historic El Terrero workings. Currently, the geological field crews are using a portable XRF (x-ray fluorescence) analyzer and a near-infrared spectrometer to obtain immediate indications of mineralization, pathfinder elements and associated alteration. Several sample lines will be tested on outcrops and soils with the handheld instruments as an orientation survey prior to detailed data collection on a grid pattern.
  • Advanced Gold Corp., announced that a phase 3 drilling program is ongoing at its Tabasqueña property in Zacatecas. ”Two targets are planned to be drilled during this program, one is a near surface target and the other deeper to test the boiling zone of the cluster of epithermal veins drilled in the two earlier phases of drilling”. Focus of the phase 3 drilling program is to drill deeper to target the boiling zone of the epithermal vein system
  • Impact Silver Corp., announced results of the initial six holes program drilled on the El Canelo Vein within its Zacualpan district project in the State of Mexico. Four of the six holes encountered encouraging mineralized intersections. Significant intercepts are in hole Z19-01 with 4.84 g/t Au, 24 g/t Ag, and 0.1% Cu (5.27 g/t AuEq) over 2.69m (TW); hole Z19-03 with 1.64 g/t Au, 39 g/t Ag, and 0.93% Cu (3.46 g/t AuEq) over 1.17m (TW), and hole Z19-04 with 1.01 g/t Au, 99 g/t Ag, and 0.97% Cu (3.61 g/t AuEq) over 0.35m (TW).
  • Azucar Minerals Ltd., presented drill results from El Porvenir and Suegro zones within its El Cobre project in Veracruz. El Suegro target is located 250m south of El Porvenir Zone, and the mineralization is associated with an altered intrusive displaying locally intense phyllic alteration overprinting potassic alteration. Significant drill intersections at El Porvenir Zone were encountered in hole EC-18-056 with 184m of 0.48 g/t Au and 0.16% Cu, including 72.50m of 0.99 g/t Au and 0.26% Cu, and 28.50m of 1.66 g/t Au and 0.33% Cu, and in hole EC-18-062 with 194.55m of 0.23 g/t Au and 0.16% Cu, including 47.25m of 0.44 g/t Au and 0.16% Cu, and 36m of 0.49 g/t Au and 0.17% Cu. At the Suegro Zone, significant drill intersections were encountered in hole EC-18-064 with 109.30m of 0.24 g/t Au and 0.13% Cu, including 3m of 0.93 g/t Au and 0.43% Cu, and in hole EC-18-06 with 130.50m of 0.16 g/t Au and 0.15% Cu, including 13m of 0.26 g/t Au and 0.17% Cu. “The newly discovered Suegro zone demonstrates the potential for multiple porphyry centers over a five kilometers strike”.

ON MINING

  • Telson Mining Corporation, reported that a significant increase in production at its Campo Morado mine in Guerrero can be achieved by reducing the size of crushed mineral mill feed. With this, Telson plans to increase the SAG Mill throughput processing rate by at least 15%.
  • Sierra Metals Inc., presented full year 2018 financial results from its mining operations. The company had revenue of $232.4M and adjusted EBITDA of $89.8M on throughput of 2,325,288 tonnes and metal production of 2.72M Oz Ag, 33.9M Lb Cu, 27.7M Lb Pb, 76.8M Lb Zn, and 7,743 Oz Au or 18M Oz AgEq, 95.2M Lb CuEq, and 251 M Lb ZnEq for the year 2018.
  • First Majestic Silver Corp., announced 2018 production results of its Mexican operations. The next table shows figures by mine:

ON FINANCING

  • McEwen Mining Inc., closed a registered direct offering for aggregate gross proceeds of US$25M. Insiders of the company, including Rob McEwen subscribed for US$3M of the offering (Fenix project, Sinaloa).
  • Vangold Mining Corp., closed its first tranche of the previous announced private placement for gross proceeds of $335K. It also increased it private placement to $700K (El Pinguino, Guanajuato

 

ON RESOURCES AND DEVELOPMENT

  • Goldplay Exploration Ltd., filed a mineral resource estimation and technical report for its San Marcial project in Sinaloa. “The report documents a maiden mineral resource estimate for the initial 500 m long x 100 m wide resource area, part of a 3.5 km mineralized exploration corridor at the San Marcial Project”. Indicated resources are 7.6M of tonnes at grades of 117 g/t Ag, 0.5% Zn, and 0.3% Ob (or 147 g/t AgEq) containing 29M Oz Ag, 86M Lb Zn, and 53M Lb Pb or 36M Oz AgEq. Inferred resources are 3.39M tonnes of 91 g/t Ag, 0.35% Zn, and 0.1%Pb (or 108 g/t AgEq) containing 10M Oz Ag, 26M Lb Zn, and 8M Lb Pb or 12M Oz AgEq.
  • Mexus Gold US, announced positive progress towards Au production at its Santa Elena project in Sonora. The company has already purchased a CAT front end loader and a Gardner Denver hydraulic track mounted blast drill. It also confirmed that the company has sufficient ore grades to begin a 3500 ton per week mining operation with expected grades of 4 grams Au per ton.
  • First Majestic Silver Corp., updated its mineral reserve and resource estimates as of December 31, 2018. Figures by mine are showed in the next tables:

ON DEALS AND CORPORATE ISSUES

  • Odyssey Marine Exploration Inc., provided an update of its Mexican phosphate project in Baja California Sur. The company has advised that a legal step has been taken to defend shareholder interests and realize the full economic value in the development of the project due to the negative decision of the past administration of Mexico to authorize the development of its project. Odyssey has filed a claim against Mexico under Chapter eleven of NAFTA.
  • GoGold Resources Inc., signed an option agreement to acquire and consolidate 29 mining concessions in a large exploration program called Los Ricos in Jalisco. The consolidated area covers 22,000 ha and is located approximately 100km NW of Guadalajara City. As part of the option agreement to consolidate the concessions of this large-scale exploration property, the Company will make an upfront payment of $70K, monthly payments of $12K for the first 12 months, monthly payments of $20K for months 13 to 24, monthly payments of $30K for months 25 to 36, monthly payments of $31.5K for the months 37 to 60. It also includes a 2% NSR on five of the concessions. If the company elects to exercise the option, a lump sum payment not to exceed $11 million can be made at any time within the six year option period.
  • Fortuna Silver Mines Inc., reported that CONAGUA has completed its investigation and issued a resolution on the overflow of the contingency pond at the dry stack tailings facility at its San Jose mine in Oaxaca. CONAGUA confirmed that no remediation of the nearby Coyote Creek is required but the company received a fine of approximately $US42K related to the incident. On the other hands, it also filed its fiscal 2018 annual report on form 40-F with the SEC.
  • Alamos Gold Inc., filed its annual information form and 2018 annual report on Form 40-F. It also announced results of its annual meeting of shareholders (Mulatos mine, Sonora).
  • GoGold Resources Inc., announced results of their annual meeting of shareholders (Parral tailings project, Chihuahua).
  • Consolidated Zinc Limited, announced that a local rancher with which the company has a land use agreement commenced legal proceedings against the Mexican subsidiary that owns the Plomosas mine in Chihuahua, to terminate the agreement. Legal advises received by the company determined there was no basis for the proceedings.
  • Levon Resources Ltd., announced the pass away of its CDEO and appointed its VP Exploration as interim CEO (Cordero project, Chihuahua).
  • Newmont Mining Corporation, received the Mexican anti-trust approval for its pending acquisition of Goldcorp Inc. Goldcorp, along with Institutional Shareholders Services Inc., continues to recommend that its shareholders vote in favour of the completion of the arrangement. Both companies also announced successful early tender period for exchange offers and consent solicitations. Goldcorp announced support for Newmont Special Dividend to its shareholders. The dividend delivers value to existing Newmont shareholders with an immediate cash payment for a portion of the synergy potential arising from the Nevada joint venture announced with Barrick Gold Corporation.
  • Great Panther Mining Limited, announced resignation of its Director (Topia mine, Durango).

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

On the picture above, a rhyolite breccia cemented by Mn oxides in a prospect in Chihuahua, Mexico.  Photo by Miguel A Heredia.

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

/ gambusinoprospectormexico / Leave a comment

Kaolin in a Hg prospect

By Miguel A Heredia

During the third week of the year (January 14th to January 20th, 2019), at least 31 press releases were announced by companies working in Mexico, with thirteen communicating production results, eight informing on exploration results, seven disclosing deals and corporate issues, one announcing financing rounds, one discussing Mexican issues, and one reporting a feasibility study for mine expansion on its property. ON MEXICO ISSUES, Napoleon Gomez Urrutia, mining leader and senator of the MORENA party, declared that is ready to go over the mining companies that do not pay enough taxes, pollute the environment and have too much ground in mining concessions.  ON EXPLORATION, In Sonora, San Marco, Silver Viper, Mexus, Sonoro, and Ridgestone announced drilling results from their Chunibas, La Virginia, Santa Elena, Cerro Caliche, and Rebeico properties respectively. In Chihuahua, Mammoth posted a technical report on its 2017-2018 drilling program at its Tenoriba project, and VVC released drilling results from its Samalayuca project.  In Sinaloa, Goldplay outlined 5 new exploration targets at its San Marcial project.  ON MINING, Alamos Gold, Alio, Premier, Coeur, GoGold, McEwen, Excellon, Avino, Hecla, Goldcorp, Fortuna and First Majestic reported Q4 and full year 2018 production results from their Mexican operations. Mako Mining reported that are pumping water from its Taunus pit at La Trinidad mine in Sinaloa and expect to commence mining by month end.  Great Panther provided 2019 production and cost guidance for their Mexican operations. ON FINANCING, Impact closed the second and final tranche of a non-brokered private placement for $1.19M for a total raise of $1.7M.  ON RESOURCES AND DEVELOPMENT, Leagold announced a feasibility study for the expansion of its Los Filos mine in Guerrero. ON DEALS AND CORPORATE ISSUES, Goldplay announced the listing of its shares on the Frankfurt Stock Exchange (San Marcial, Sinaloa). Mako reported that now holds a 100% interest in the La Trinidad mine in Sinaloa. SilverCrest announced executive appointments (Las Chispas project, Sonora). Oroco provided an update on its option to acquire an additional interest in its Santo Tomas project in Sinaloa. Prize provided an update about an order on regulatory matters issued by the Alberta Securities Commission (Manto Negro project, Coahuila). Newmont and Goldcorp entered into a definitive agreement to create the world´s leading gold company.  Minera Alamos launched new website (Santana project, Sonora).

ON MEXICO ISSUES

  • Napoleon Gomez Urrutia, mining leader and senator of the MORENA party, declared that is ready to go over the mining companies that do not pay enough taxes, pollute the environment and have too ground in mineral concessions. The mining leader is reviewing mineral concessions and said that mining companies should contribute to the government with more revenues. He also said that the Mining Law of Mexico has to be regulated in accordance with the interests of the country. “We are looking at the cancellation terms for a concession and its extension, because 50, 100 years is too long,” he explained. The senator also mentioned not to have in mind any particular tax for companies.

ON EXPLORATION

  • San Marco Resources Inc., released phase 1 drilling results from its Chunibas project in Sonora, where, under a JV option agreement with a subsidiary of Antofagasta plc., the company is exploring several Cu-Ag rich mineralized targets mapped on surface. Drilling carried out at Chunibas project consisted of 1,640m in 7 shallow drill holes and tested 2km of the NW-SE striking mineralized corridor with 5 drill holes, and 400m of a NE-SW section perpendicular to the  corridor with 2 drill holes. The drilling program has confirmed the existence of a typical Cu-Ag manto-type system. Highlights include hole CHD18-05 with 7.5m of 0.1% Cu and 2 g/t Ag and 22m of 0.05% Cu and 0.7 g/t Ag; hole CHD18-06 with 3m of 0.08% Cu and 0.6 g/t Ag; and hole CHD18-07 with 6m of 0.06% Cu and 0.3 g/t Ag.
  • Silver Viper Minerals Corp., reported second batch drilling results from its la Virginia project in Sonora. Significant results are at El Rubi Zone in hole LV18-201 with 13.3m (6m TW) with 3.16 g/t Au and 228 g/t Ag (6.42 g/t AuEq), including 4m (1.8m TW) of 3.75 g/t Au and 258 g/t Ag (7.43 g/t AuEq), and including 1m (0.45m TW) of 8.30 g/t Au and 782 g/t Ag (19.47 g/t AuEq); hole LV18-200 with 12m (9m TW) of 1.52 g/t Au and 133 g/t Ag (3.42 g/t AuEq), including 2m (1.5m TW) of 5.51 g/t Au and 537 g/t Ag (13.18 g/t AuEq); and hole LV18-203 with 10m (5m TW) of 1.1 g/t Au and 97 g/t Ag (2.48 g/t AuEq), and 12m (6m TW) of 1.37 g/t Au and 81 g/t Ag (2.53 g/t AuEq), including 1m (0. 5m TW) of 13.20 g/t Au and 780 g/t Ag (24.34 g/t AuEq). A third and final batch of results are pending and will be released once the assays are received.
  • Mexus Gold US, announced that the 1st phase of drilling at its Santa Elena project in Sonora has been completed. Final results are expected to arrive in February 2019. Until now, “Hole 7 is the best evidence of high-grade gold at 9.89 g/t Au with an attractive width of 5.3 meters and an overall average of 3.12 g/t Au”.
  • Sonoro Metals Corp., completed 45 RC holes totaling 4,604m at its Cerro Caliche project in Sonora, confirming a luster of eight northwest trending gold-dominant structures surrounded by parallel sheeted veinlets and stockwork veinlets. Significant drill intersections are Highlights from the final 14 holes include 12.19m of 11.2 g/t Au and 5.9 g/t Ag (11.3 g/t AuEq); 4.57m of 4.67 g/t Au and 2 g/t Ag (4.69 g/t AuEq); and 12.19m of 0.82 g/t Au and 8.5 g/t Ag (0.95 g/t AuEq).
  • Ridgestone Mining Inc., released final assay results from an initial drill program conducted at its Rebeico project in Sonora. Significant intersections are in hole 18REB6 with 3.25m of 8.31 g/t Au and 2.41% Cu, including 0.5m of 6.95 g/t Au and 1.31% Cu, and 1m of 17.7 g/t Au and 5.95% Cu, and 1m of 5.59 g/t Au and 0.83% Cu; and hole 18REB10 with 1.5m of 36.1 g/t Au and 1.22 g/t Ag, and 1.46 g/t Au and 0.07% Cu.
  • Mammoth Resources Corp., posted an internal technical report based on 13 holes totaling 2,700m drilled during its 2017-2018 drilling program conducted on its Tenoriba project in Chihuahua. Some of the conclusions are: At El Moreno area, feldspar porphyry intrusive rocks were intersected displaying porphyry –style mineralization including disseminated sulphides and complex stockworks-sulphide rich veinlets. Hole TEN 17-02 intersected 80m of 0.17 g/t AuEq: Phyllic-pyrite alteration was also identified in drill core and consists of illite-tourmaline and dickite; K-feldspar flooding was observed at deeper intervals and the presence of 7.2m of 3.59% Cu in hole TEN 17-03. At the Carneritos area, mineralization identified is more typical of high sulphidation and consists of narrow pyrite rich veinlets in a stockwork texture associated with silica, dickite and local patchy vuggy silica alteration. Hole TEN 17-06 intersected 126.08m of 0.52 g/t AuEq, including 25m of 1.21 g/t AuEq.
  • VVC Exploration Corporation, announced the results for the last 11 drill holes from its Samalayuca project in Chihuahua. The most significant intersections are in hole SC18-056 with 19.65m of 0.32% Cu; hole SC18-057 with 28m of 0.79% Cu; and hole SC18-058 with 5m of 0.55% Cu. “The 2017/18 drilling program confirmed significant, near surface, copper mineralization over an approximate 5km strike length.”
  • Goldplay Exploration Ltd., outlined with soil and rock sampling five new exploration targets at its San Marcial project in Sinaloa. Faisanes, Cabañas, Nava, Pedregal, and Chachalaca targets have been prioritized for follow up exploration and detailed geological mapping in H1, 2019. “The Cabañas and Faisanes targets demonstrate very similar geology to the historic resource, while the Nava and Pedregal targets indicate a NE-SW trending structural setting, superimposed on a volcanic package of rhyolites and andesites cut by dioritic dykes. The Chachalaca trend is interpreted as a NW-SE trending structural setting, with geology dominated by rhyolites and andesites”.

ON MINING

  • Alamos Gold Inc., reported its Q4 and annual 2018 production results from their Mulatos and El Chanate mines in Sonora. Production from Mulatos in Q4 was 35.6K Oz Au for a full year 2018 of 175.5K Oz Au. At El Chanate mine, Alamos produced 35.6K Oz Au in Q4 2018 for an annual 2018 production of 43.7K Oz Au. Alamos Gold expects to produce between 150K-160K Oz Au in 2019. Mining activities ceased at El Chanate mine in Q4 2018 and has transitioned to residual leaching which will result in a declining rate of production through 2019.
  • Alio Gold Inc., announced its Q4 and full year 2018 production results from its San Francisco Mine in Sonora. At its San Francisco mine the company achieved a Q4 production of 10.3K Oz Au for a full year 2018 production of 54K Oz Au. The company reported that “there are sufficient stockpiles to operate at full capacity throughout 2019 (as at July 1, 2018, the low-grade stockpile consisted of approximately 7.2 M tonnes of 0.26 g/t gold material (60.2K contained Oz Au). Gold production at San Francisco mine is expected to remain consistent with current production levels for at least the first half of 2019”.
  • Premier Gold Mines Limited, reported its Q4 and full year 2018 production results from its Mercedes mine in Sonora. In Q4, the company produced 22.5K Oz Au and 119K Oz Ag for an annual 2018 production of 68.7K Oz Au and 309.2K Oz Ag.
  • Coeur Mining Inc., released its Q4 and full 2018 production results from its Palmarejo mine in Chihuahua. In Q4, Coeur milled 378,389 tonnes of 2.49 g/t Au and 185 g/t Ag to produce 31.2K Oz Au and 1.9M Oz Ag with metallurgical recoveries of 97.6% and 84% respectively. For the full year 2018, the company milled 1,382,471 tonnes of 3.1 g/t Au and 202 g/t Ag to produce 122.7K Oz Au and 7.5M Oz Ag with metallurgical recoveries of 88.9% and 83.8% respectively.
  • GoGold Resources Inc, announced its Q4 2018 production results from its Parral operation in Chihuahua. In Q4, GoGold produced 1,828 Oz Au and 168K Oz Ag for a total of 325K Oz AgEq.
  • Mc Ewen Mining Inc., presented its Q4 and annual 2018 production results from its El Gallo mine in Sinaloa. The company produced 5.6K Oz AuEq in Q4 for a total full 2018 production of 39.1K Oz AuEq. By the end of Q2 2018, mining and crushing activities ceased at El Gallo mine and were followed by residual heap leaching. Closure, reclamation, and residual heap leaching activities are ongoing and will continue for several years.
  • Excellon Resources Inc., announced its Q4 and annual 2018 production results from its Platosa mine in Durango. Excellon milled 16,570 tonnes of 556 g/t Ag, 4.9% Pb and 6% Zn in Q4 to produce 274.3M Oz Ag, 1.5M Lb Pb, and 1.8M Lb Zn. In the full 2018 year, Excellon milled 57,475 tonnes of 488 g/t Ag, 4.8% Pb, and 6.9% Zn to produce 917.7M Oz Ag, 5.4M Lb Pb, and 7.9M Lb Zn.
  • Avino Silver & Gold Mines Ltd., presented its Q4 and full year 2018 production results from their Avino, San Gonzalo and Above Ground Stockpiles in Durango. In Q4, the company milled 189,574 consolidated tonnes of 64 g/t Ag, 0.5 g/t Au, 0.44% Cu to produce 288.6K Oz Ag, 1,973 Oz Au, and 1.4M Lb Cu with metallurgical recoveries of 75%, 64% and 72% respectively. For the full 2018 year, Avino milled 708.7K tonnes of 73 g/t Ag, 0.53 g/t Au, and 0.43% Cu to produce 1.3M Oz Ag, 8K Oz Au, and 4.8M Lb Cu with metallurgical recoveries of 76%, 65%, and 72% respectively.
  • Hecla Mining Company, announced its Q4 and annual 2018 production results from its San Sebastian mine in Durango. Hecla produced 443.3K Oz Ag and 2,928 Oz Au in Q4 and 2M Oz Ag and 15K Oz Au in the full 2018 year. The mill operated at an average of 429tpd in 2018.
  • Goldcorp Inc., released its Q4 and annual 2018 production results from their operations. Goldcorp did not report results by mine but produced 630K Oz Au in Q4 and 2.3M Oz Au in the full 2018 year.
  • Fortuna Silver Mines Inc., reported its Q4 and annual 2018 production results from its San Jose mine in Oaxaca. Fortuna milled 256,181 tonnes of 1.58 g/t Au and 230 g/t Ag in Q4 to produce 11.8K Oz Au and 1.7M Oz Ag. In the full 2018 year, Fortuna milled 534,773 tonnes of 1.75 g/t Au and 260 g/t Ag to produce 53.5K Oz Au and 8M Oz Ag.
  • First Majestic Silver Corp., presented its mine by mine Q4 2018 production results from their Mexican operations. The table below shows production details for each mine:

  • Mako Mining Corp., reported that are still in the process of dewatering the Taunus pit at its La Trinidad mine in Sinaloa and has already reached bench -56, where there are over 57M tonnes of blasted rock of 1.35 g/t Au. The company expects to commence mining by month end, at which time crushing and stacking on the leach pad can once again resume. There is an estimated of 30K Oz of recoverable Au left in the Taunus pit. The Company is still evaluating the safest and most effective mine plan to recover the remaining Oz Au.
  • Great Panther Silver Limited, provided 2019 production and cost guidance for their two Mexican operations: Topia in Durango and the Guanajuato mine complex which includes the San Ignacio and the Guanajuato mines. Great Panther expects to produce in 2019 over 3.7-4.0 M AgEq. The company also has taken the step of realigning their Mexican operations to reduce cost and maximize mine operating cash-flow, with a modest reduction in their production ounces.

ON FINANCING

 

  • Impact Silver Corp., closed the second and final tranche of a non-brokered private placement for $1.19M for a total raise of $1.7M. Gross proceeds will be used to explore its Zacualpan project in State of Mexico for additional potential targets, to improve the efficiency at its Guadalupe production mill, and for general working capital purposes.

ON RESOURCES AND DEVELOPMENT

  • Leagold Mining Corporation, announced a feasibility study for the expansion of its Los Filos mine in Guerrero. Highlights of the FS are: production of 3.3M Oz Au over a 10-year mine life (2019-2028) at an average AISC of $795; and proven and probable mineral reserves of 111.3M tonnes of 1.23 g/t Au containing a total of 4.5M Oz Au. Post expansion (2021 onwards) include an average annual production of 350K Oz Au at AISC of $759/Oz and an average annual production exceeding 400K Oz Au from 2012 to 2013.

ON DEALS AND CORPORATE ISSUES

  • Goldplay Exploration Ltd, announced the listing of its shares on the Frankfurt Stock Exchange under the symbol GPE effective January 15, 2019 (San Marcial project, Sinaloa).
  • Mako Mining Corp., completed the acquisition of Golden Reign Resources Ltd., from Marlin Gold Mining Ltd., and now holds a 100% interest in the la Trinidad mine in Sinaloa.
  • SilverCrest Metals Inc., announced the appointment of its VP Exploration and Technical Services and its Executive VP Business Development (Las Chispas project, Sonora).
  • Oroco Resource Corp., engaged an independent QP to prepare a technical report on its Santo Tomas property in Sinaloa. It allows Oroco to acquire an additional interest on the property.
  • Prize Mining Corporation, provided an update about the order issued by the Alberta Securities Commission on December 21, 2019, requiring that all trading in securities of Prize cease and that Prize must cease trading in all securities. Prize applied for a further adjournment and now the Alberta Securities Commission issued a variation order dated January 14, 2019 to adjourn the hearing to February 1, 2019.
  • Newmont Mining Corporation & Goldcorp Inc., entered into a definitive agreement to form Newmont Goldcorp and create the world´s leading gold company. Newmont will acquire all of the outstanding common shares of Goldcorp in a stock-by-stock transaction valued in $10B. “Newmont Goldcorp’s Reserves and Resources will represent the largest in the gold sector and will be located in favorable mining jurisdictions in the Americas, Australia and Ghana, representing approximately 75 percent, 15 percent and 10 percent, respectively”. The Boards of Directors of both companies have unanimously approved the transaction, which is expected to be closed in Q2, 2019.
  • Minera Alamos Inc., launched a new brand and improved website.

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, kaolin in a Hg prospect in San Luis Potosi, Mexico.  Photo by Miguel A Heredia.

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

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Sodic hydrothermal alteration

By Miguel A Heredia

During the 41th week of the year (October 08th to October 14th, 2018), at least 27 press releases were announced by companies working in Mexico, with eight reporting mining activities, seven informing on exploration results, four announcing financing issues, four communicating deals and corporate issues, two making donations to the local communities where they are working, and two reporting on resources and developments.  ON MEXICO ISSUES, Alamos Gold donated an educational center while Fresnillo plc contributed with a community library.  ON EXPLORATION, In Sonora, Minera Alamos reported drilling results from its Santana project, Sonoro Metals announced the launching of a 10,000m RC drilling program at its Cerro Caliche project, and Mexus announced an upcoming drill program at its Santa Elena project. In Chihuahua, VVC released drill results from its Samalayuca project. In Coahuila, Prize Mining reported underground sampling results from its Manto Negro project.  In Zacatecas, Advanced Gold presented drill results from its Tabasquena project. In Jalisco, Evrim received the environmental permit to drill its Cuale project. ON MINING, Capstone, Coeur, Endeavour, Fortuna, Great Panther, McEwen and Sierra Metals reported Q3 2018 results from their Mexican operations. Fortuna also reported overflow problems in the tailings facilities at its San Jose mine in Oaxaca. ON FINANCING, Galore closed a non-brokered private placement for gross proceeds of CDN$ 419.6 K. VVC increased its previous non-brokered private placement to CAD$ 2.5M. Sable raised an aggregate of $4.6M. Telson closed a non-brokered private placement for gross proceeds of $6.8M. ON RESOURCES AND DEVELOPMENT, Americas Silver provided updated mineral reserve and resource estimates for its Cosala operation in Sinaloa. Goldplay announced sampling results of historical core from its San Marcial project in Sinaloa.  ON DEALS AND CORPORATE ISSUES, Sonoro Metals acquired a 100% interest in the Cabeza Blanca concession (Cerro Caliche project, Sonora). Consolidated Zinc extended its share purchase plan until Monday 22 October, 2018 (Plomosas mine, Chihuahua). Leagold (Los Filos mine, Guerrero) appointed new COO and Plata Latina (El Naranjillo, Guanajuato) announced resignation of Director.

ON MEXICO ISSUES

  • Alamos Gold Inc., donated an educational center to the communities of Matarachi and Mulatos in Sonora.
  • Fresnillo plc., contributed with a library for the community of the Ejido Rodeo in Durango.

ON EXPLORATION

  • Minera Alamos Inc., reported initial results of a phase 1 drill program from its Santana project in Sonora. Significant intersections are Hole S118-116 with 93.5m of 0.65 g/t Au, Hole S118-115 with 17.8m of 0.73 g/t Au, and Hole S118-114 with 15.5m of 0.27 g/t Au and 14.9m of 1.4 g/t Au. “The first three holes were drilled near or within the Nicho deposit and were intended to evaluate mineralized extensions of previous exploration programs”. Assay results are pending from the remaining seven holes drilled during this phase 1 program.
  • Sonoro Metals Corp., announced the launching of a 10,00m RC drill program at its Cerro Caliche project in Sonora. The company has been granted with a 2 years environmental permit to drill 87 RC-holes in two years equivalent to approximately 10,000m. The Cerro Caliche´s target is a 2 square km zone with a cumulative total of over 10 km of gold mineralized quartz veins with associated lower grade veinlet zones.
  • Mexus Gold US, announced an upcoming drill program at its Santa Elena project in Sonora. Initial drilling will occur on 300m of the 2.2km long Julio vein and associated shear zone to probe a 100K Oz Au target.
  • VVC Exploration Corporation., presented results of sixteen holes drilled at the Gloria Extension East Zone within its Samalayuca project in Chihuahua. Highlights results are in Hole SC18-033 with 8.2m of 0.66% Cu, Hole SC18-34 with 10.1m of 0.34% Cu, Hole SC18-38 with 9.55m of 0.34% Cu, Hole SC18-39 with 9.6m of 0.38 % Cu, Hole SC18-40 with 14.4m of 0.35% Cu, Hole SC18-41 with 13.45m of 0.39% Cu, Hole SC18-43 with 25m of 0.32% Cu, Hole SC18-45 with 8m of 0.43% Cu, Hole SC18-46 with 6m of 0.41% Cu, Hole SC18-48 with 9m of 0.30% Cu, and Hole SC18-49 with 7.5m and 6m with 0.33% Cu and 0.35% Cu respectively.
  • Prize Mining Corporation, reported underground channel sampling results from the El Granizo mine within its Manto Negro Copper project in Coahuila. Thirty two individual samples returned > 1% Cu with a peak of 9% Cu. The weighted average content of the underground channel sampling was 2.62% Cu over an average channel height of 1.7m. Eleven samples returned > 100 g/t Ag and up to 199 g/t Ag, and eight samples with > 1% Pb to a maximum of 2.78% Pb.
  • Advanced Gold Corp., presented drill results from its Tabasquena project in Zacatecas. Three holes were drilled below the near surface oxide zone of the Tabasquena vein, the two furthest apart being 125m along strike. Highlights include the increase of the amount of quartz as drilling deeper and the discovery of 5 new blind epithermal veins.
  • Evrim Resources Corp., received drill permit and mobilized drill crew to its Cuale high sulphidation project in Jalisco. The drill program will consist of at least 3,000m and comprises between 10-15 drill holes. “The first drill holes at Cuale are planned at La Gloria to test the depth extent of the high grade Au mineralization encountered in trenches 1 and 4, followed by other high priority drill targets throughout the trenched area. Drilling is also planned at four step-out areas to test geophysical targets within the anomalous gold in soil geochemical and rock chip halo, including the North Dome which extends up to 1,000m north of the trenched area.

ON MINING

  • Capstone Mining Corporation, reported Q3 2018 results from its Cozamin mine in Zacatecas. Capstone milled 270,436 tonnes at a grade of 1.7% Cu, 1.1% Zn, 0.3% Pb and 49 g/t Ag to produce 9.7M Lb Cu, 4.6M Lb Pb, 983K Lb Pb, and 321K Oz Ag with metallurgical recoveries of 94.7%, 67.1%, 51.3% and 75.9% respectively.
  • Coeur Mining Inc., provided Q3 2018 results from its Palmarejo mine in Chihuahua. Coeur processed 300, 116 tonnes of 195 g/t Ag and 0.12 g/t Au to produce 1.3M Oz Ag and 14.7K Oz Au.
  • Endeavour Silver Corp., released Q3 2018 results from their three Ag-Au Mexican operations: Guanaceví mine in Durango, and the Bolañitos and El Cubo mines in Guanajuato. Production table for the third quarter is as follow:

 

Production for mine Tonnes produced Tonnes per

day

 Grade

Ag

(g/t)

 Grade

Au

(g/t)

 Rec.

Ag

(%)

 Rec.

Au

(%)

 Ag

Oz

 Au

Oz
Guanaceví 81,268 883 218 0.48 91.0 88.8 518,318 1,114
Bolañitos 109,728 1,193 84 1.67 79.7 82.0 236,197 4,832
El Cubo 126,825 1,379 188 2.00 88.0 86.1 674,313 7,022
Consolidated 317,821 3,455 160 1.50 87.5 84.8 1,428,828 12,968

 

  • Fortuna Silver Mines Inc., reported Q3 2018 results from its San Jose Mine in Oaxaca. Fortuna milled 262,710 tonnes of 258 g/t Ag and 1.61 g/t Au to produce 2M Oz Ag and 12.4K Oz Au, with metallurgical recoveries of 91.47% and 91.24% respectively. The company also reported that the heavy seasonal rains caused an overflow in a contingency pod of the dry stack tailings facilities at its San Jose mine.
  • Great Panther Silver Limited, announced Q3 2018 production results from their Mexican operations. At the Guanajuato Mine Complex, Great Panther processed 74,303 tonnes with grades of 124 g/t Ag and 2.12 g/t Au to produce 260.8K Oz Ag and 4.4K Oz Au with metallurgical recoveries of 87.8% and 87.1% respectively. At the Topia mine, the company processed 18,617 tonnes with grades of 334 g/t Ag, 0.90 g/t Au to produce 188K Oz Ag, 323 Oz Au, 11.28M Lb Pb, and 1.4M Lb Zn, with metallurgical recoveries of 94.0% for Ag and 59.6% for Au.
  • McEwen Mining Inc., presented production results from its El Gallo project in Sinaloa. Residual heap leaching at El Gallo resulted in 10.5K GEOs (gold equivalent ounces) in Q3 2018.
  • Sierra Metals Inc., released Q3 2018 production results from their Mexican operations. At the Bolivar mine, Sierra Metals processed 227,690 tonnes of 0.99% Cu, 17 g/t Ag and 0.17 g/t Au to produce 3.9M Lb Cu, 94K Oz Ag and 911 Oz Au with metallurgical recoveries of 78.30%, 74.27% and 68.59% respectively. At Cusi mine, the company processed 55,058 tonnes of 156 g/t Ag, 0.14 g/t Au, 0.3% Pb, and 0.3% Zn to produce 231K Oz Ag, 84 Oz Au 243K Lb Pb, and none Zn, with metallurgical recoveries of 83.49%, 32.97%, 78.0%, and 0.0% respectively.

ON FINANCING

  • Galore Resources Inc., closed a non-brokered private placement for gross proceeds of CAD$ 419.6K (Dos Santos, Zacatecas).
  • VVC Exploration Corporation, increased its non-brokered equity private placement financing to CAD$1.2M from the previously announced CAD$ 1.2M (Samalayuca Copper project, Chihuahua).
  • Sable Resources Ltd., raised an aggregate of $4.6M and also closed its previously announced bought deal financing for aggregate gross proceeds of $2.5M (Margarita project, Chihuahua).
  • Telson Mining Corporation, closed a non-brokered private placement for gross proceeds of $6.8M to finalize the construction of the Tahuehueto mine in Durango.

 

ON RESOURCES AND DEVELOPMENT

  • Americas Silver Corporation, provided update mineral reserve and resource estimates for its Cosala operation in Sinaloa, including Nuestra Señora, El Cajón, and San Rafel mines and the Zone 120 deposit. The estimate also includes San Felipe project in Sonora on which the company holds an option. Proven and probable mineral reserves at Cosala operation as June 30, 2018 are 2.9M tonnes of 110 g/t Ag, 1.7% Pb, and 4.0% Zn for a total content of 10.3 M Oz Ag, 107.7M Lb Pb, and 255.7M Lb Zn. Measured and Indicated mineral resources at Cosala (exclusive of mineral reserves) are 8.9M tonnes of 129 g/t Ag, 0.25% Cu, 0.5% Pb, and 1.2% Zn for a total content of 36.9M Oz Ag, 49M Lb Cu, 102.8M Lb Pb, and 231.2M Lb Zn, while inferred resources are 2.96M tonnes of 113 g/t Ag, 0.21% Cu, 0.9% Pb, and 1.4% Zn for a total content of 10.8M Oz Ag, 14M Lb Cu, 59.1M Lb Pb, and 88.1M Lb Zn. At San Felipe project, measured and indicated mineral resources are 4.7M tonnes of 61 g/t Ag, 2.48% Pb, and 5.42% Zn for a total content of 9.1M Oz Ag, 256M Lb Pb and 559.7M Lb Zn, while inferred resources are 2M tonnes of 48 g/t Ag, 1.4% Pb, and 3.6 g/t Zn for a total content of 3.1M Oz Ag, 63.2M Lb Pb and 157.8M Lb Zn.
  • Goldplay Exploration Ltd., announced positive results from sampling of the historical core at its San Marcial project in Sinaloa. Highlights results are in Hole SM-10-07 with 57.3m (TW 51.6m) of 122 g/t Ag Eq, including 14.3m (TW 12.9m) of 278 g/t Ag Eq, including 18.6m (TW 16.7m) of 117 g/T Ag Eq, and Hole SM-10-15 with 7m (TW 52.8m) of 104 g/t Ag Eq, including 12.5m (TW 11.2m) of 379 g/t Ag Eq. “The high-grade results support open pit potential of the initial 500 meter long deposit”.

ON DEALS AND CORPORATE ISSUES

  • Sonoro Metals Corp., acquired a 100% interest in the 10 Has Cabeza Blanca concession paying to the vendor US$175K and 250K Sonoro common shares, this to be paid in five installments over 2 years. “The Cabeza Blanca agreement completes our acquisition of all the mineral concessions under consideration within the 14 km² Cerro Caliche group,” said Kenneth MacLeod, President and CEO of Sonoro. “Cabeza Blanca’s strategic location within Cerro Caliche, along with the positive results from our sampling program and similar results from earlier exploration programs, makes this concession a priority target for Sonoro to drill.”
  • Consolidated Zinc Limited, extended its share purchase plan until Monday 22 October, 2018 from the previous closing date of 15 October 2018.

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, sodic hydrothermal alteration in a Cu-Mo prospect in Coahuila, Mexico.  Photo by Miguel A Heredia.

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

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Banded quartz epithermal vein

By Miguel A Heredia

During the 37th week of the year (September 10th to September 16th, 2018), at least 22 press releases were announced by companies working in Mexico, with ten informing on exploration results, six reporting on resources and developments, four communicating deals and corporate issues, and two announcing production results.  ON MEXICO ISSUES, no relevant news.  ON EXPLORATION, In Sonora, Riverside and Kootenay announced exploration results from its Cecilia and La Mina projects respectively. In Chihuahua, Harvest Gold began preparations to drill test its Cerro Cascaron project and Sable Resources released drilling results from its Margarita project.  In Sinaloa, Auxico reported sampling results from its Zamora project In Durango, Gainey announced a 1st phase of exploration at its Las Margaritas project, Orex commenced fieldwork exploration on its San Luis del Cordero project, and Prospero reported drilling results from its Buenavista project. In Zacatecas, Advance Gold started a phase 2 drilling program at its Tabasquena project. In Jalisco, Evrim announced trench and soil results from its Cuale project.  ON MINING, Starcore reported Q1 2018 results from its San Martin mine in Queretaro. US Antimony announced plans to increase its production of Sb, Au and Ag in Mexico. ON FINANCING, no relevant news. ON RESOURCES AND DEVELOPMENT, In Sonora, SilverCrest and Premier Gold released drilling results from its Las Chispas and Mercedes projects respectively. Aura provided an update at its Aranzazu mine in Zacatecas. Candelaria announced a PEA for its Pinos Gold project in Zacatecas.   McEwen reported that hopes to add 12 years of mine life at its El Gallo Complex in Sinaloa.  ON DEALS AND CORPORATE ISSUES, Evrim and First Majestic agreed to exercise the Ermitaño and Cumobabi option agreements in Sonora. New Gold announced the appointment of its new President and CEO (Cerro San Pedro mine, San Luis Potosi). Levon announced results from its annual general meeting (Cordero project, Chihuahua). Vangold withdrew its submission to acquire the San Carlos property in Guanajuato (El Pinguico mine, Guanajuato).

ON MEXICO ISSUES

  • No relevant news.

ON EXPLORATION

  • Riverside Resources Inc., completed 11 N-S lines for soil sampling which returned strong multi-elements anomalies with Au, Pb, Cu, and other key elements. These results along with previous exploration work have outlined four new target areas on its Cecilia project in Sonora. Target 1 is a 4km long by 300m wide target where previous rock sampling has found up to 2 g/t Au in silicified conglomerates , but the soil anomaly is open in both directions beyond the 4 Km and more than 800m wide. Target 2 is a NE trending Ag, Pb, Au, Zn, Sb, Hg and Cu soil anomaly over 2km long and 600m wide in rock cracks with faults and host veining displaying a series of NW striking feeder dikes. Target 3 is a 1km long by 500m wide Au-Zn with minor Ag, Cu, Pb and Bi soil anomaly associated to a N-S trending fault system intersecting Paleozoic limestones. This target is also along the border edge of a magnetic high reported in a regional government geophysics survey likely associated with Pre Cambrian granitic basement.  Target 4 contains “high-grade gold samples in soils and alteration with jasperoid, silicification, and carbonate veining of the Paleozoic limestone that gives a potential limestone hosted Au with anomalous soil assays of Zn, Pb, Ag and Mn”.
  • Kootenay Silver Inc., announced that its partner Capstone Mining Corp., has commenced an exploration program on its la Mina project in Sonora. The exploration program will consists of detailed mapping and rock chip / stream sediment sampling to generate potential drill targets.
  • Harvest Gold Corporation, reported that Evrim Resources, its JV partner and operator on its Cerro Cascaron project in Chihuahua, has mobilized an advance team to the site to start preparations to drill test the property. The drill program, expected to commence at the end of September, will consist of 3,000 m to test the Cascaron Gold targets and the Cascarita Silver targets.
  • Sable Resources, released drilling results from its Margarita project in Chihuahua. Significant intersections are from hole M-DDH-18-09 with 6.5m of 111 g/t Ag Eq, including 3.5m of 153 g/t Ag; hole M-DDH-18-11 with 11.3m of 252 g/t Ag Eq, including 1.3m of 889 g/t Ag Eq; hole M-DDH-18-12 with 12.7m of 98 g/t Ag Eq, including 1.8m of 244 g/t Ag Eq. Additionally, Sable identified a low-grade stockwork style of mineralization evident in numerous holes. The most significant results are hole M-DDH-18-03 with 44.13m of 50 g/t Ag Eq, including 6.95m of 142 g/t Ag Eq; hole M-DDH-18-07 with 7.6m of 54 g/t Ag Eq, and hole M-DDH-18-12 with 21.35m of 37 g/t Ag Eq. “With the first stage of drilling now complete we will evaluate our results and formulate a plan for stage 2 drilling targeting further extensions of Margarita and the other adjacent parallel veins”.
  • Auxico Resources Canada Inc., reported high-grade sampling results from its Zamora project in Sinaloa. Significant results are 0.80m of 4Kg Ag and 29.2 g/t Au at La Franca claim, 600m southwest of the Campanillas mine along a structure that can be followed by at least 600m along strike. Mineralization consists of breccia-stockwork veining containing galena, sphalerite and possible silver sulphosalts, malachite and chalcopyrite. Other significant results are from Aguamas area where some channel samples returned 0.65m of 6.38 g/t Au and 23 g/t Ag; 0.70m of 14.7 g/t Au and 34 g/t Ag; 0.50m of 3.55 g/t Au and 108.7 g/t Ag; and 1.60m of 6.64 g/t Au and 220 g/t Ag.
  • Gainey Capital Corp., announced a phase 1 exploration program on its Las Margaritas project in Durango. Las Margaritas is a mineralized vein system that extends at least 1.5Km along strike and averages 1-2m in width. The 1st phase exploration program will consists of detailed mapping and sampling with the objective to identify prospective areas to generate the best drill targets.
  • Orex Minerals Inc., commenced an exploration program on its San Luis del Cordero project in Durango, where the company has an option to acquire 100% interest in the property from Exploraciones del Altiplano S.A. de C.V. Mineralization at San Luis del Cordero is characterized by skarn and epithermal vein Ag-Cu-Zn as a result of Tertiary-quartz-feldspar-porphyry intrusions affecting Jurassic and Cretaceous limestones, calcareous sandstones and shales. The project has seen several phases of exploration from different mining companies, including 16,400m drilled in 62 holes in the period 2000-2016. The property contains indicated resources of 662.6K tonnes of 121 g/t Ag, 0.78 % Cu and 1.1 % Zn for a total of 5.1M Oz Ag Eq, and inferred resources of 2, 785,300 tonnes of 144 g/t Ag, 0.75 % Cu and 1.45 % Zn, for a total of 24.4 M Oz Ag Eq.
  • Prospero Silver Corp., reported core drilling results from eleven holes totaling 2, 811m drilled at its Buenavista project in Durango. Mineralization drilled-tested at Buenavista consists of structurally controlled epithermal veins centered on a rhyolite dome complex. “All holes cut anomalous silver mineralization, with a best interval of 1.6m @ 353g/t Ag from 185.6m downhole, within a broader interval of 49m @ 43g/t Ag in hole BVF-18-05”.
  • Advance Gold Corp., started a second phase drilling program at its Tabasquena project in Zacatecas to test the La Tabasquena epithermal vein at a depth of 1,800m. Phase 2 will test below the gold discovery hole of phase 1. It also will test some of the potential feeder type targets and all of the veins below the oxide zone which goes down to an estimated 175 metres below surface.
  • Evrim Resources Corp., announced new trench and soil results from its Cuale project in Jalisco. Highlight results include the trench 2 which was extended from 29.4m to 184.1m with an average grade of 0.85 g/t Au, including 59.1m of 1.79 g/t Au, and including 21.6m of 4.18 g/t Au; Trench 4 , extended from 106.2m to 156.2m with an average grade of 9.57 g/t Au, including 64.6m of 20.85 g/t Au, and including 7.5m of 163.31 g/t Au; and Trench 5 which contains 174m of 0.62 g/t Au, including 70m of 1.16 g/t Au, and including 40m of 1.45 g/t Au. A soil grid with 200 metre spacing outlined a Au anomaly over the entire La Gloria prospect with grades >0.01 g/t Au of 2,300m by 800m with a central corridor of 1,700m by 300m >0.1 g/t Au extending north of the trenched area.  “The soil anomaly at higher elevation correlates with elevated silver, antimony, molybdenum, arsenic and low contents of manganese and zinc.  At lower elevations gold correlates with elevated copper, tellurium, arsenic, bismuth and iron”. “The new trench results expand the La Gloria zone to the northwest and the east with consistent gold mineralization.  Soil sampling indicates the La Gloria system footprint is measurably larger with the potential to host a significant deposit and/or additional mineralized centers within the La Gloria prospect”.   “The soil survey has a distinctive high sulphidation signature centred on a large gold in soil anomaly that is approximately 2,300 metres by 800 metres.  The results indicate a potential major system with significant upside for additional mineralized centers within the La Gloria prospect.”

ON MINING

  • Starcore International Mines Ltd., reported Q21 2018 results from its San Martin mine in Queretaro. Starcore milled 77,400 tonnes of 1.53 g/t Au and 49 g/t Ag to produce 3.3K Oz Au and 72.7K Oz Ag, with an all-in sustaining cost of US$ 1,215 for Eq Oz. Metallurgical recoveries were 88.1% for Au and 59.6% for Ag.
  • US Antimony Corporation, produced 131,184 Lb Sb and 1,244 short tonnes of zeolites in August 2018 and announced plans to increase its production of Sb, Au and Ag in Mexico. At its Wadley mine in San Luis Potosi, the general level will be reactivated by cleaning up the waste to provide access and transportation of the lower grade for the mill. At Sierra Guadalupe in Zacatecas, the Santa Monica drift will be restarted. The ore is primarily sulphides and can be upgraded to 60-70% Sb flotation concentrate at its Puerto Blanco Mill to make antimony tri-sulphide. At the Soyatal district in Queretaro, a buying program will be started to purchase direct shipping ore for its Madero smelter. The construction of the cyanide leach plant for the Los Juarez Au-Ag-Sb should allow pilot testing to commence during Q4 2018. The company also closed an agreement purchase, dismantle and transport an antimony plant from Reynosa, Tamaulipas. When installed, the equipment from the Reynosa plant will increase the capacity of the Madero Smelter in Coahuila to approximately 30,000,000 Lb per year of antimony oxide.

ON FINANCING

  • No relevant news.

 

ON RESOURCES AND DEVELOPMENT

  • SilverCrest Metals Inc., released drilling results from its Las Chispas project in Sonora and expanded the high grade at Babicanora Norte vein. Drill holes have intersected additional high-grade Ag-Au mineralization at Babicanora Norte vein which is located about 300m NE of Babicanora vein and apparently is connected with the Granaditas area which contains multiple veins to the southeast. The most significant results are 1.8 m of 15.11 g/t Au and 1,718 g/t Ag or 2,851 g/t Ag Eq, 1.6 m of 8.96 g/t Au and 1,078 g/t Ag or 1,750 g/t Ag Eq and 1.5 m of 4.22 g/t Au and 687 g/t Ag or 1 Kg Ag Eq. The drilling results of Babicanora Norte vein will be part of the upcoming updated resource which will include 8 of the 30 identified veins in the district.
  • Premier Gold Mines Limited, reported drilling results from the Rey de Oro deposit at its Mercedes mine in Sonora. Highlights results include hole UG-R018-013 which returned 12.64 g/t Au and 240.1 g/t Ag across 29.65 m (TW of 13.5 m), hole UG-R018-015 with 0.41 g/t Au and 3120.0 g/t Ag (91.0 oz/ton) across 1.52 m (TW of 1.06 m), and hole UG-R018-012 with 17.00 g/t Au and 321.0 g/t Ag across 1.1 m (TW of 0.8 m) and 4.47 g/t Au and 138.5 g/t Ag across 8.25 m (TW of 6.1 m). “Underground drilling at Rey de Oro consists of step-out and delineation drilling of this recently developed horizon. This drilling continues to intersect some of the widest vein intercepts on the property and demonstrate the potential to continue to extend the mine life at Mercedes”.
  • Aura Minerals Inc., provided an update at its Aranzazu mine in Zacatecas. Aura has obtained all the necessary permits and initiated the construction of the new tailings disposal system. “The Company expects the Aranzazu mine to achieve commercial production later this year and to achieve the average processing of 2,600 tonnes per day shortly thereafter”.
  • Candelaria Mining Corp., announced a PEA for its Pinos Gold project in Zacatecas. Highlight results from the PEA indicate an after tax net present value (NPV) of US$ 12M using a 5% discount rate, an after tax internal rate return (IRR) of 25%, and a 7 years life of mine with projected gold equivalent ounce (“GEO”) production of 89,000. The PEA includes a mineral resource estimate as of September 13, 2018. Measured resources (Dump) are 85,847 tonnes of 1.6 g/t Au and 83 g/t Ag for a total of 4,444 Oz Au and 229K Oz Ag. Indicated resources are 175,697 tonnes of 3.6 g/t Au and 47 g/t Ag for a total of 20.6K Oz Au and 268K Oz Ag. Inferred resources are 529,267 tonnes of 3.6 g/t Au and 48 g/t Ag for a total of 60.7K Oz Au and 811K Oz Ag. Average recovery for Au and Ag are 90 and 80% respectively. The company plans to have an annual production of 12,700 GEO with an overall average direct cash cost of %US 666 per GEO.
  • McEwen Mining Inc., reported that hopes to add 12 years of mine life at its El Gallo Complex in Sinaloa, combining mineralized sources from five locations that will be developed in two distinct process plant construction phases. McEwen plans to produce 47K Oz Au Eq per year.
  • Bacanora Lithium plc., announced plans to start the mine construction on its Sonora Lithium project in Sonora. $US 420M will be invested in the first phase and is expected to begin to operate in 2020.

ON DEALS AND CORPORATE ISSUES

  • Evrim Resources Corp., and First Majestic Silver Corp., agreed to exercise the Ermitaño and Cumobabi option agreements in Sonora. First Majestic has completed its 100% earn-in for both projects. First Majestic has paid $1.5M in cash to Evrim and has granted a 2% NSR in the case of Ermitaño project and 1.5% NSR in the case of Cumobabi project.
  • New Gold Inc., announced the appointment of its new President and CEO (Cerro San Pedro mine, San Luis Potosi).
  • Levon Resources Ltd., released results from its annual general meeting (Cordero project, Chihuahua).
  • Vangold Mining Corp., withdrew its submission to the TSX Venture Exchange to acquire the San Carlos property in Guanajuato.

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

On the picture above, a banded quartz vein in an intermediate sulphidation epithermal project in Zacatecas, Mexico.  Photo by Miguel A Heredia.

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

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By Jorge Cirett

During the 20th week of the year (May 14th to May 20th, 2018), at least 17 press releases were announced by companies working in Mexico. Seven companies updated exploration advances, with only one company reporting a quarterly report and one other a round of financing. Two companies disclosed news on resources and development while four reported on deals and company issues. ON MEXICO ISSUES, No relevant news. ON EXPLORATION, In Sonora, San Marco was awarded the Espiritu concession, and Millrock begun a new drilling campaign at La Navidad. In Chihuahua, Endeavour Silver released drill results from its Parral properties; VVC Exploration commenced a new drill campaign at its Samalayuca project. In Coahuila, Discovery Metals presented rock sample results from three prospects within its Minerva project. In Sinaloa, Kootenay optioned the Copalito property. In Jalisco, Evrim commenced a third phase exploration campaign at Cuale. ON MINING, Starcore International presented a quarterly report. ON FINANCING, SilverCrest Metals announced the closing of a $17.25 M financing. Mexus Gold paid a $183 K debt. ON RESOURCES AND DEVELOPMENT, Mag Silver presented an advance on development of the Juanicipio project in Zacatecas. Minera Alamos completed the second phase of bulk leach testing at its Santana property in Sonora. ON DEALS AND CORPORATE ISSUES, Marlin Gold and Golden Reign signed a LOI pursuing a business combination. Kootenay Silver optioned the Copalito property in Sinaloa. Argonaut Gold informed on the state of affairs of the legal battle to resume blasting at its La Colorada mine in Sonora. Leagold received clearance from the Mexican government to complete a business combination with Brio Gold.

ON MEXICO ISSUES

  • No Relevant News.

ON EXPLORATION

  • Endeavour Silver Corp. disclosed drilling results from its Parral properties in Chihuahua. At the San Patricio vein system 8,846 m of core drilling have been completed over 1400 m of strike length. “Three mineralized areas were intersected, of which the largest and central zone now measures 600 m long by 250 m vertical (starting 150 m deep) by 1-3 m true thickness, still open to the south and at depth”. Highlighted true width (TW) intercepts include 2.1 m @ 303 g/t Ag, 0.05 g/t Au, 0.4% Pb, 0.5% Zn; 1.0 m @ 678 g/t Ag, 0.22 g/t Au, 3.5% Pb, 0.9% Zn; 3.0 m @ 689 g/t Ag, 0.24 g/t Ag, 1.6% Pb, 1.1% Zn; 1.6 m @ 293 g/t Ag, 0.27 g/t Au, 3.5% Pb, 7.6% Zn; 2.3 m @ 1,660 g/t Ag, 0.72 g/t Au, 6.5% Pb, 14.4% Zn. Metallurgical recoveries from core samples with flotation and leaching tests include 47% Ag from Sierra Plata (oxide), 98% Ag on El Verde (mixed), 95% Ag on Remedios-Argentina (mixed), 94% Ag and 93% Au on Palmilla (oxide) and 91% Ag and 86% Au in Cometa-San Juanico (mixed).
  • San Marco Resources Inc. announced it was awarded the Espiritu 2,712 ha SMR concession in the recent mineral concession lottery by the Mexican government. The property is less than 30 km SE from San Marco’s Chunibas and 1068 projects in the Sahuaripa district. “Espiritu SMR overlies a window of pre-mineral cretaceous volcanic and sedimentary rocks intruded by Laramide age granitoids”. Previous operator in the area, Kootenay Silver Inc. stated: “An extensive area of polymetallic vein, stockwork, breccia and gold-copper porphyry mineralization”. A porphyry copper setting and a vein and stockwork zone of precious and base metal mineralization are separated by a major fault. Selected drill hole intercepts include 48.0 m @ 0.19 g/t Au, 0.1% Cu; 220.5 m @ 0.14 g/t Au, 0.15% Cu. San Marco is preparing to do a first-pass ground validation and prospecting.
  • VVC Exploration Corp. commenced the third phase of diamond drilling at its Samalayuca copper project in Chihuahua. VVC expects to drill about 3,000 m in the next 180 days.
  • Kootenay Silver Inc. optioned the Copalito project in Sinaloa (See below). “The Copalito Project covers a gold and silver epithermal vein system comprised of numerous veins, with individual veins currently traced over strike lengths up to 2 kilometres. Veins vary in width from 0.5 to 10 meters at surface and grade from background to highs of 7.2 gpt gold and 1,620 gpt silver in grab samples”. Vein textures indicate a low or intermediate sulfidation vein system.
  • Millrock Resources Inc. is beginning a second round of drilling at its La Navidad project in Sonora. The target in the project is orogenic gold mineralization, bulk mineable run-of-mine oxidized deposit. The 1,650 m program aims to drill 150 – 250 m in depth in seven holes, testing areas of gold soil anomalies that now are supported by gold anomalies in trenches. The strongest anomalies occur in folded, faulted metasedimentary rocks of Jurassic age, in close proximity to diorite and monzonite dikes. An induced polarization survey has identified low angle structures conducive of orogenic gold deposits. A 1.4 km of trenching on 16 trenches has been completed, with multiple intervals of anomalous gold, like 18.0 m @ 0.56 g/t Au, 24.9 m @ 0.32 g/t Au, 18.2 m @ 0.20 g/t Au, 10.9 m @ 0.38 g/t Au.
  • Evrim Resources Corp. commenced a third phase exploration at its Cuale high sulfidation project in Jalisco. The program includes 3,000 m of drilling, following on discovery trenches 1 to 4 from La Gloria zone, where trench 1 returned 1.67 g/t Au over 263.7 m and trench 4 returned 13.61 g/t Au over 106.2 m. “The soil survey has already commenced and will be followed with up to 650 metres of trenching at La Gloria and surrounding targets to extend the known footprint of outcropping gold mineralization”. A 40 line-km controlled source audio-magnetotellurics (CSMAT) is planned on potential mineralization under shallow cover. A 3,000 m program is expected to commence on July.
  • Discovery Metals Corp. disclosed assay results of 152 samples from its Minerva project in Coahuila. “Minerva encompasses Ag-Pb-Zn mineralization hosted in skarns, mantos, chimneys and breccias”, similar to La Encantada mine 30 km to the East. The mineralization is located along the margin of a polyphase granitoid intrusive body, with ample zone of shallow gravel cover. At La Tercia prospect, channel samples returned 0.8 m @ 30 g/t Ag, 2.3% Pb, 4.6% Zn; 2.0 m @ 249 g/t Ag, 6.9% Pb, 0.1% Zn; 4.0 m @ 37 g/t Ag, 1.6% Pb, 0.2% Zn; 0.6 m @ 3.8% Pb, 0.4% Zn; 0.6 m @ 84 g/t Ag, 5.8% Pb, 0.2% Zn. At Concordia samples returned 0.8 m @ 1,775 g/t Ag, 14.5% Pb, 40.3% Zn; 0.7 m @ 51 g/t Ag, 2.6% Pb, 0.4% Zn; 0.4 m @ 11 g/t Ag, 0.4% Pb, 25.8% Zn. At Mina Minerva results include 5.1 m @ 39 g/t Ag, 0.4% Pb, 2.0% Zn; dump @ 229 g/t Ag, 30.5% Pb, 5.7% Zn; 0.8 m @ 143 g/t Ag, 9.7% Pb, 5.3% Zn; 1.0 m @ 41 g/t Ag, 2.0% Pb, 16.4% Zn.

ON MINING

  • Starcore International Mines Ltd. announced production results for the fourth quarter of its fiscal year 2018. During the quarter 71.9 K tonnes of ore @ 1.69 g/t Au, 40.6 g/t Ag were processed on its San Martin mine in Queretaro, resulting in the production of 4,140 Oz AuEq. Mill recoveries averaged 88.4% Au, 57.4% Ag. Also during the quarter the Altiplano facility received 373 tonnes of concentrate containing approximately 805 Oz Au and 26,813 Oz Ag.

ON FINANCING

  • SilverCrest Metals Inc. completed its prospectus offering for gross proceeds of $17.25 M, including the exercise of the over-allotment option in full. The company paid the underwriters a cash commission of up to 6% of the gross proceeds of the offering. The proceeds are to be used on the preparation of a preliminary economic assessment (PEA) at the Las Chispas property in Sonora, as well as continuing exploration in the several targets it contains.
  • Mexus Gold US. announced the payment of $183.3 K due to JMJ Financial, closing the current outstanding debt agreement prior to the expiration date (8 Hermanos, Sonora).

ON RESOURCES AND DEVELOPMENT

  • Mag Silver Corp. presented financial results for the first quarter of 2018. Underground development rate has intensified, and exploration drilling is now utilizing directional drilling to infill and expand the Deep Zone, which remains open to depth and on strike. The company funded advances on the Juanicipio project in Zacatecas, mainly by “cash calls” by the operator (Fresnillo PLC). At the end of the period the company had $152.7 M in cash and cash equivalents.
  • Minera Alamos Inc. has completed the second phase of its bulk testing heap-leach activities at its Santana project in Sonora. The initial phase used coarse crushing (<3”) and the second phase involved fine crushing (<1.2-5/8”) and agglomeration of the same mineralized material prior to leaching. The recoveries from the second phase were faster and consistent with those of the first phase of leaching, with 190 Oz Au recovered from 9,000 tonnes of material over a three month period, representing 0.65 g/t of recovered gold.

ON DEALS AND CORPORATE ISSUES

  • Marlin Gold Mining Ltd. and Golden Reign Resources Ltd. entered into a non-binding letter of intent (LOI) together with Wexford Capital LP, pursuing a business combination of Golden Reign’s San Albino-Murra property in Nicaragua, and Marlin’s La Trinidad mine in Sinaloa. Golden reign plans to acquire all Marlin shares. Upon completion of the transaction Marlin shareholders will own approximately 45% of Golden Reign shares, while Golden Reign shareholders will own 55% of the shares.
  • Kootenay Silver Inc. entered into an option agreement to acquire a 100% interest on the Copalito Ag-Au project in Sinaloa. The seven concessions 3,700 ha project can be acquired by making staged payments over a 4-year period, totaling US$985 K, with the vendors retaining a 0.5% NSR. A finders fee of C$10 K and 100 K common shares have to be paid.
  • Argonaut Gold Inc. reported that the Judiciary court hearing with respect to the company’s explosives permit for its La Colorada mine has been rescheduled to June 4, 2018. The company also appealed the Judiciary court’s original decision to temporarily suspend the explosives permit to the Collegiate Tribunal, requesting to re-instate the explosives permit so the company can blast material while the judiciary legal process continue. Argonaut estimates it has sufficient ore to continue operations until the end of July, at the present rate of 12,000 tonnes per day (tpd).
  • Leagold Mining Corp. received clearance from the Comisión Federal de Competencia Económica (COFECE) with respect to Leagold’s acquisition of Brio Gold Inc. “COFECE approval was the final government agency approval required before completing the acquisition, which is anticipated to occur on or around May 24, 2018”

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, opaline silica from a shallow epithermal system in Guanajuato. Picture by Jorge Cirett.

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

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088 - copia

On the picture above, Very strong silicification and minor alunite on a shallow epithermal system in Guanajuato. Picture by Jorge Cirett.

By Jorge Cirett

During the 16th week of the year (April 16th to April 22nd, 2018), at least 20 press releases were announced by companies working in Mexico, of which two had information on exploration, five on first quarter production, three in financing, two on resources and development and seven in corporate issues. ON MEXICO ISSUES, No relevant news. ON EXPLORATION, In Jalisco, Evrim released impressive high-grade results from trenching at Cuale. In Veracruz, Mexican Gold released high grade samples from veins at Las Minas. ON MINING, McEwen, Fortuna Silver, Avino Silver, Telson and Excellon presented Q1 2018 production reports. ON FINANCING, Prospero Silver and Aura Silver respectively announced the opening and closing of financing rounds, while Excellon announced the exercise of warrants. ON RESOURCES AND DEVELOPMENT, SilverCrest released drill results from the Luigi vein at its Las Chispas property in Sonora. Levon Resources filed a PEA report with a new resource estimate on the Cordero project in Chihuahua.  ON DEALS AND CORPORATE ISSUES, Monarca Minerals continues work to solve community issues in Tejamen, Durango. Geologix Explorations Inc. is to change name to ValOro Resources Inc.. Advance Gold acquired the Venaditas property in Zacatecas. Argonaut Gold informed on the legal struggle that halted the explosives permit use on its La Colorada mine in Sonora. Goldplay Exploration optioned the San Marcial property in Sinaloa. Vangold Mining and Mexican Gold granted options to officers, directors and consultants.

ON MEXICO ISSUES

  • No Relevant News.

ON EXPLORATION

  • Evrim Resources Corp. announced results from trench sampling at its Cuale project in Jalisco. Trench 4 grades 13.61 g/t Au over 106.2 m, including 50.0 m grading 26.13 g/t Au, including 7.5 m @ 163.3 g/t Au. Trench 2 grades 2.94 g/t Au over 29.4 m, including 17.9 m @ 4.55 g/t Au. Gold results over 10 g/t have been re-assayed. “Metallic screen assays reported acceptable repeatability with excellent repeatability at the highest gold grades”. A second IP line defines a 1,200 m long by 50 to 120 m deep highly resistive ledge associated with strong silicification and minor anomalous gold at the surface.
  • Mexican Gold Corp. released initial sampling results from four veins on its Pueblo Nuevo concession, part of its Las Minas property in Veracruz. The veins are hosted in diorites with argillic alteration, occur as mesothermal quartz veins, 20 to 50 cm in width with sub-vertical dips and lack post-minerals deformation. The Tamiahua I vein assayed 90.82 g/t Au, 37 g/t Ag over 0.40 m, with the footwall and hanging wall returning 0.52 g/t Au, 1 g/t Ag over 1.0 m and 0.72 g/t Au, 1 g/t Ag over 0.80 m respectively. Nine samples at the Tamiahua II returned 2.05 to 22.82 g/t Au and 5 to 37 g/t Ag on an average width of 0.27 m (up to 0.50 m). At the Cajon vein a grab sample returned 32.2 g/t Au, 231 g/t Ag; while a 0.20 m chip sample assayed 3.53 g/t Au, 31 g/t Ag. At the Dos Rios vein, two 0.35 m and 0.18 m samples returned 3.86 g/t Au, 16 g/t Ag; 8.25 g/t Au, 59 g/t Ag respectively, while a 1.0 m  hanging wall channel sample returned 4.92 m g/t Au, 38 g/t Ag.

ON MINING

  • McEwen Mining Inc. reported consolidated production for Q1 2018, which includes figures from its Mexican operations. At El Gallo in Sinaloa, 12,217 AuEq Oz were produced during the period. Mining from the existing open pits will cease in Q2, while heap leach activities will continue until 2020, or as long as it remains economic.
  • Fortuna Silver Mines Inc. reported first quarter 2018 production, including figures from its Mexican operations. At San Jose in Oaxaca, 258 K tonnes were milled, at an average rate of 3,011 tonnes per day (tpd) @ 284 g/t Ag, 0.2 g/t Au, and a recovery of 92.8% Ag, 92.3% Au, to produce 2.18 M Oz Ag, 14,882 Oz Au.
  • Avino Silver & and Gold Mines Ltd. released first quarter 2018 production results from its Avino property in Durango. During the period 120.6 K tonnes were milled @ 56 g/t Ag, 0.58 g/t Au, 0.43% Cu, with recoveries of 81% Ag, 68% Au, 84% Cu, to produce 309.9 K Oz Ag, 2,065 Oz Au, 970 K Lb Cu.
  • Telson Mining Corp. presented first quarter 2018 results from its Campo Morado mine in Guerrero. During the period the mill processed 148.7 K tonnes (approximately 1,650 tpd) @ 3.65% Zn, 0.41% Cu, 0.90% Pb, 1.14 g/t Au, 108 g/t Ag, with recoveries of 70.4% Zn, 23.0% Cu, 37.9% Pb, 17.9% Au, 28.3% Ag in the elaboration of distinct Zn, Cu, Pb concentrates containing 3,824 tonnes Zn, 140.5 tonnes Cu, 508.7 tonnes Pb, 970.9 Oz Au, 146.8 K Oz Ag. Telson continues to ramp-up production to the 2,500 tpd plant capacity.
  • Excellon Resources Inc. presented first quarter 2018 production results from the Platosa mine, Durango. During the period 13,784 tonnes were mined, 18,885 tonnes milled @ 359 g/t Ag, 3.79% Pb, 6.43% Zn, with recoveries of 87.3% Ag, 81.2% Pb, 83.8% Zn, to produce 194.5 K Oz Ag, 1.27 M Lb Pb, 2.25 M Lb Zn.

ON FINANCING

  • Prospero Silver Corp. is to complete a non-brokered private placement intending to raise gross proceeds of up to $1 M (Petate, Hidalgo; Bermudez, Chihuahua).
  • Excellon Resources Inc. announced that 3.33 M warrants were exercised, for proceeds of C$2.17 M (Platosa, Durango).
  • Aura Silver Resources Inc. is undertaking a non brokered private placement to raise gross proceeds of up to $600 K (Aranzazu, Zacatecas).

ON RESOURCES AND DEVELOPMENT

  • SilverCrest Metals Inc. released drill results from the Luigi vein on the Las Chispas property in Sonora. The vein was discovered in mid-2017 and referred only as unnamed vein until further drilling delineated a prospective target. Relevant results comprise: 0.8 m (true width, or TW) @ 1.03 g/t Au, 151 g/t Ag; 4.1 m @ 1.71 g/t Au, 232 g/t Ag; 1.8 m @ 0.28 g/t Au, 221 g/t Ag; 1.4 m @ 13.22 g/t Au, 2,067 g/t Ag; 1.4 m @ 0.18 g/t Au, 172 g/t Ag; 1.6 m @ 3.41 g/t Au, 265 g/t Ag; 1.0 m @ 2.75 g/t Au; 231 g/t Ag. The Luigi vein high-grade footprint measures 300 m long by at least 75 m high, averaging 1.7 m in width @ 2.84 g/t Au, 417 g/t Ag. “The Phase III drill program also includes drilling several new and partially-drilled high-grade mineralized veins. An additional 15,000 to 20,000 metres of drilling are planned for Q3 2018”. The 672 ha Cuesta Blanca ranch was bought, with SilverCrest now owning two thirds of the surface rights on the Las Chispas property.
  • Levon Resources Ltd. filed a NI-43-101 technical report with a resource update and preliminary economic assessment (PEA) for the Cordero project in Chihuahua. The project envisages a 40 K tpd operation with a 29 year mine life on 417.5 M tonnes of mineralized material @ 46.5 g/t AgEq, to produce 231 M Oz Ag, 2,863 M Lb Zn, 1,992 M Lb Pb, 0.35 M Oz Au. The base case economic estimate is an after tax net present value of $438 M, using a 7.5% discount rate, and an after tax internal rate of return of 16.5%, with a payback period of 4.8 years.

ON DEALS AND CORPORATE ISSUES

  • Monarca Minerals Inc. presented a corporate update. At Tejamen, in Durango, 202 RC holes and 10 diamond holes have been re-logged to help in the design of a new drilling campaign. The company has involved the Federal, State and Municipal governments in its search of an agreement with the community regarding the surface rights. At San Jose, in Chihuahua, the LOI on the project was extended to July 2018. “Terms of the LOI call for payment of US$20,000 on execution of the LOI(paid), US$20,000 on execution of a definitive agreement, US$50,000 on the first anniversary of the definitive agreement and US$60,000 on the second anniversary of the definitive agreement. The owners retain a 2% NSR. One percent of the NSR can be purchased by Monarca for US$100,000. Back taxes on the property of US$390,000 will be paid over a period of time. Concession taxes per year are approximately US$46,000”.
  • Geologix Explorations Inc. announced its intention to change its name to ValOro Resources Inc., subject to approval by the TSX-V, as well a 10 to 1 consolidation on shares (Tepal, Michoacan).
  • Advance Gold Corp. announced the acquisition of the 2,365 ha Las Venaditas claim in Zacatecas, 11 km to the West of Advance’s Tabasqueña project, which is currently being drilled. “Upon receipt of regulatory approval, Advance will issue to Hot Spring Mining, a Mexican based corporation, 1,000,000 common shares which will be subject to a statutory four-month hold period, in exchange for which Hot Spring Mining will transfer a 100% interest in the Venaditas claims to Advance Mexico. Hot Spring Mining will retain a 2.5% NSR, of which Advance Mexico has the right to buy 1.5% at a rate of $500k CAD per 0.50%”. Advance will issue 800 K options to certain consultants and advisers.
  • Argonaut Gold Inc. reported that the court has postponed “the hearing pertaining to Argonaut’s explosive permit at its La Colorada mine (see press release dated April 12, 2018) to allow the Secretary of National Defense (“SEDENA”) to provide evidence requested by the court regarding the temporary suspension of the explosives permit at Argonaut’s La Colorada mine. It is expected that a ruling will be issued within 15 business days of the original hearing date (April 16, 2018), as required by law.” (La Colorada, Sonora).
  • Goldplay Exploration Ltd. entered into an option agreement with SSR Mining Inc. to acquire a 100% interest in the 1,250 ha San Marcial project in Sinaloa. San Marcial is a low sulfidation epithermal near surface high grade Ag, Zn Pb project with a NI-43-101 resource completed by Silvermex Resources Inc., with opportunity for resource expansion. The indicated resource holds 3.75 M tonnes @ 149 g/t Ag, 0.67% Zn, 0.36% Pb, hosting 18.0 M Oz Ag, 29.9 M Lb Zn, 55.3 M Lb Pb; and 3.07 M tonnes @ 44 g/t Ag, 0.51% Zn, 0.29% Pb holding 4.4 M Oz Ag, 19.5 M Lb Zn, 34.7 M Lb Pb as inferred resources. Goldplay has to pay SSR Mining an aggregate of $2.575 M in cash, issue an aggregate of 3.5 M common shares, incur in $3 M in exploration expenditures over a three year period and grant a NSR royalty (0.5% to 1.5%, based on a resource estimate). A NI-43-101 resource estimate has to be completed on or before the third anniversary of the agreement.
  • Vangold Mining Corp. granted an aggregate of 4.8 M stock options to directors, officers and consultants (Pinguico, Zacatecas).
  • Mexican Gold Corp. granted 174 K incentive stock options to directors and officers of the company.

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