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

By Jorge Cirett

During the 20th week of the year (May 13th to May 19th, 2019), at least 34 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, the Mexican government set the goal to reach $8 billion on mining investment annually. Fresnillo received an award for sustainable development.  ON EXPLORATION, In Chihuahua, Silver Spruce granted the contract for its drilling program at Pino de Plata. ON MINING, Mag Silver, Sierra Metals, Americas Silver, Great Panther, Consolidated Zinc, Starcore International and Fortuna Silver presented its first quarter 2019 financial and or operational results. Mexus Gold is hiring technical personnel for its Santa Elena mine and Fresnillo is setting logistic controls to prevent concentrate theft. ON FINANCING, Alien Metals raised £300 K, Orla Mining announced an early warrant incentive program for $4.2 M, Vangold raised $248 K, and Sable Resources $863 K. Almaden secured a gold loan for US$2 M from Almadex, First Mining raised $7.41 M . ON RESOURCES AND DEVELOPMENT, Fresnillo and Mag Silver approved the development of the Juanicipio mine in Zacatecas. Premier Gold released good exploration results at its Mercedes mine in Sonora. GoGold released results from two more drill holes at Los Ricos, Jalisco.  SilverCrest filed a PEA with good numbers from its Las Chispas property in Sonora.  Goldplay announced a 5,000 m drilling campaign at its San Marcial project in Sinaloa. ON DEALS AND CORPORATE ISSUES, Riverside signed a 2 year US$2 M exploration financing agreement with BHP for copper exploration in Sonora. Silver Spruce received $200 K for the sale of a property outside Mexico. Azure Minerals regains control from Teck of the Alacrán property in Sonora. Goldgroup Mining and Dyna Resources presented their stances respect litigation rulings relating to the San Jose de Gracia property in Sinaloa.

ON MEXICO ISSUES

  • The Bureau of Economy (Secretaría de Economía) set the goal for the non-oil mining sector, including processing, of attracting an investment of US$ 8 billion per year. This is a steep endeavor, taking into account that in 2018 Mexico saw mining investments for US$4.55 billion, a 1.8% decrease 2017 levels, and a far cry from the 2012 record of 8 billion dollars.
  • Fresnillo PLC. received by eleventh occasion the award from Centro Mexicano para la Filantropía, which recognized the company’s compromise and adherence to national and international social responsibility practices. Fresnillo programs are focused on quality education, care and promotion of natural resources and personal development of inhabitants in neighboring communities.
  • The Mexican Core Shack saw the addition of core images from the Metates and Sirio projects, in Durango and Chihuahua respectively.

ON EXPLORATION

  • Silver Spruce Resources.  announced the granting of the drilling contract for a twelve hole program on its Pino de Plata property in Chihuahua. The rig is to be mobilized within a week.

ON MINING

  • Mag Silver Corp. released its first quarter 2019 financial results. The Juanicipio project (Zacatecas) approval was subsequent to the period end, but all principal permits have been obtained and the process plant construction is to begin immediately. Underground development continues, with over 19 km of total underground development now completed. The company estimates US$344.4 M of remaining pre-operative initial capital. As of the end of the quarter Mag Silver held US$128.6 M of cash and cash equivalents.   
  • Mexus Gold US.  announced the payment of a $111.5 K note. Furthermore, the company is looking to hire two chemists and one geologist to assist at the Santa Elena mine in Sonora (not to be mistaken with First Majestic’s Santa Elena mine, also in Sonora).  
  •  Sierra Metals Inc. presented its consolidated financial results for the first quarter of 2019. Sierra had revenue of $49.2 M and adjusted EBITDA of $12 M for the period, with record throughput at Cusi. At Bolivar, Chihuahua, cash cost was $2.04 per CuEq Lb and AISC $3.59 per CuEq Lb. At Cusi, also in Chihuahua, cash cost was $16.53 per AgEq Oz and AISC $30.57 per AgEq Oz. During the quarter the consolidated production (Mexico and Peru) was 7.7 M Lb Cu, 0.7 M Oz Ag, 16.4 M Lb Zn, 7.0 M Lb Pb. The company has a net debt of $45.0 M, holding 23.9 M in cash and cash equivalents. 
  • Americas Silver Corp. reported operational and financial results for the first quarter of 2019. The company released consolidated production figures (without disclosing the production in Mexico) of 1.8 M AgEq Oz, with a revenue of $17.8 M and net loss of $2.8 M for the quarter. The enterprise had a cash balance of $3.4 M and working capital balance of $5.2 M at the end of the period (Cosalá Complex, Sinaloa).
  • Fresnillo PLC. is setting logistics controls to reduce the probability of concentrates theft. Some of the measures taken include keeping close relations with authorities at the Federal, State and local levels; remote technological controls; physical security improvements at its Merrill Crowe plants; replacement of most security contractors, with increased controls; keeping to invest in community programs and infrastructure to back community development and support the rule of law; Suspending access to areas deemed too insecure; promoting the disclosing of criminal acts to the authorities.
  • Great Panther Mining Ltd. reported financial results for the first quarter 2019. The company completed the acquisition of Beadell Resources and its Tucano mine in Brazil in March, and most of the report refers to its impact on the company. “A project to increase Topia mining and processing capacity by 25% commenced in the first quarter of 2019 with design specifications and equipment purchases and is scheduled to be completed late in the third quarter or early in the fourth quarter”. At the end of the period the company had $41.4 M of cash and short-term deposits.  
  • Consolidated Zinc Ltd. disclosed production from its Plomosas mine in Chihuahua during the month of April, 2019. During the month 3,694 tonnes of ore were mined @ 11.66% Zn, 1.75 % Pb, for a total of 11,267 tonnes mined @ 10.7% Zn, 2.5% Pb during the first quarter 2019. Mine development was 173 meters for the month, 612 m for the quarter , with 4,737 tonnes sent to the Santa Eulalia concentrator plant, achieving a recovery of 88.9% Zn.
  • Starcore International Mines Ltd. announced production results for the fourth quarter 2019, ended on April 30, 2019. During the period 72 K tonnes were milled @ 1.8 gpt Au, 30 gpt Ag, recovering 86.03% Au, 54.56% Ag, to produce 4,093 AuEq Oz. The company stressed the 25% voluntary reduction on salary for the three top executives, same that will save $250 K annually.
  • Fortuna Silver Mines Inc. reported consolidated financial results for the first quarter 2019. During the period the company had sales of $59.0 M, net income of $2.2 M, adjusted net income of $8.4 M, adjusted EBITDA of $23.8 M and an AISC of $10.7 per AgEq Oz. At the San Jose mine in Oaxaca, 256.4 K tonnes were milled at a rate of 2,984 tonnes per day @ 267 gpt Ag, 1.71 gpt Au, recovering 91% Ag, 90% Au, to produce 2 M Oz Ag, 12,741 Oz Au at a cash cost of $6.4 per AgEq Oz and an AISC of $8.7 per AgEq Oz.

ON FINANCING

  • Alien Metals Ltd. raised £300 K, before expenses, to further exploration at its Donovan 2 project in Zacatecas.
  • Orla Mining Ltd. announced an early warrant exercise incentive program for 6.7 M warrants outstanding expiring in July 2021. Holders exercising the 2021 warrants will be entitled to receive one full new warrant. If all the 2021 warrants are exercised Orla would receive gross proceeds of $4.2 M before July 12, 2019 (Camino Rojo, Zacatecas).
  • Vangold Mining Corp. closed the second tranche of the previously announced private placement for gross proceeds of $248 K. A finder’s fee of $14.4 K and 285 K warrants was paid (Pinguico, Zacatecas).
  • Sable Resources Ltd. closed the first tranche of a non-brokered private placement to raise aggregate gross proceeds of $863 K (Margarita, Chihuahua).
  • Almaden Minerals Ltd. entered into a secured gold loan agreement with Almadex Minerals Ltd. for up to 1,597 Oz Au, or approximately US$2 M. “The interest rate of the Gold Loan is 10% of the Loan Value per annum, paid in arrears. Interest payments can either be accrued to the Loan Value, or paid by the Borrower in cash or gold” (Ixtaca, Puebla).
  • First Mining Gold Corp. upsized and closed the previously announced private placement, raising aggregate proceeds of $7.41 M (San Ricardo, Sonora; Lachatao, Oaxaca).

ON RESOURCES AND DEVELOPMENT

  • Fresnillo PLC and Mag Silver Corp. received approval from their respective boards for development of the Juanicipio mine in the Fresnillo district, Zacatecas. Fresnillo is to be the operator in the Fresnillo-Mag JV (56% and 44% respectively), with construction to begin immediately and completion expected for late 2020. The mine is anticipated to produce annually 11.7 M Oz Ag, 43.5 K Oz Au, with an initial mine life of 12 years. The estimated pre-operative Capex is $US395 M, estimating the creation of 2,750 jobs during construction and 1,720 jobs at full production.
  • Premier Gold Mines Ltd. announced the expansion of the Lupita-Diluvio resource area and a 3 km corridor that step-out exploration has identified. New mineralized veins have been discovered at San Martin and Margarita, outlining a 3 km corridor, while Lupita vein extension drilling returned multiple intercepts including 3.9 m @ 5.99 gpt Au, 41 gpt Ag; 2.9 m @ 5.70 gpt Au, 56 gpt Ag. Ongoing delineation program at Lupita intersected high-grade intercepts including 1.2 m of 10.75 gpt Au, 89 gpt Ag. At Diluvio West one delineation hole returned 30.4 m @ 6.43 gpt Au, 12 gpt Ag including 4.4 m @ 13.79 gpt Au, 22 gpt Ag.
  • GoGold Resources Inc. released results from two more diamond drill holes collared at its Los Ricos project in Jalisco. The program includes twining of old RC holes, returning higher grades than the previous holes, like 21.2 m @ 7.66 gpt Au, 1,270 gpt Ag (previously 20.0 m @ 3.20 gpt Au, 845 gpt Ag), including 6.9 m @ 21.97 gpt Au, 3,718 gpt Ag (previously 6.0 m @ 9.00 gpt Au, 2,608 gpt Ag); 18.8 m @ 0.37 gpt Au, 68 gpt Ag, including 4.5 m @ 0.96 gpt Au, 119 gpt Ag.
  • SilverCrest Metals Inc. released and filed the results from a preliminary Economic assessment (PEA) on its Las Chispas project in Sonora. The study displays a 1,250 tonnes per day (tpd) production rate at 411 gpt AgEq with an initial mine life of 8.5 years to produce annually an average of 5.38 M Oz Ag, 55,700 Oz Au at AISC of $7.52 per AgEq Oz. The Capex is $100.5 M with a payback period of nine months with an after-tax IRR of 78%, after-tax NPV of $406.9 M and cumulative undiscounted net free cash flow of $522.5 M. The PEA estimates a diluted resource of 3.86 M tonnes @ 4.05 gpt Au, 411 gpt Ag, or 714 gpt AgEq, containing 502,200 Oz Au and 51 M Oz Ag, or 88.7 M Oz AgEq with estimated average mining dilution of 33%.
  • Goldplay Exploration Ltd. announced a 5,000 m drilling campaign on its San Marcial property in Sinaloa. The focus of the campaign is on the Faisanes and Nava targets, and to check on newly discovered zones along the Faisanes-Nava corridor. The company is anticipating a Phase II drilling campaign late in 2019 with the secondary objective of test eight exploration targets along a 6 km trend outside of the San Marcial resource area.

ON DEALS AND CORPORATE ISSUES

  • Riverside Resources Inc. signed a two-year US$2 M exploration financing agreement with BHP Exploration Chile SpA. for the funding of generative exploration in the copper producing belt of Mexico. BHP is to fund US1 M on an annual basis for a minimum of two years for generative grass-roots exploration within northeastern Sonora. Properties deemed of interest will become Defined Projects (DPs) and will be funded up to $5 M of exploration work. Riverside is to receive a success fee of US$200 K for each DP, with a $200 K bonus if three properties become DPs. If a DP goes to the Joint Venture stage (Riverside 20%), Riverside is to receive a $1.5 M bonus, and can sell its interest to BHP if elects not to continue on the JV (Tajitos, Sonora; El Capitan, Durango).
  • Silver Spruce Resources Inc. received a $200 K cash payment from Croesus Gold Corp. for the sale of the Kay mine project. After a go-public transaction is completed, Croesus is to  pay Silver Spruce a  final cash payment of $150 K, no later than July 15, 2019 (Pino de Plata, Chihuahua).
  • Azure Minerals Ltd. accepted a right of first offer proposal by Teck Resources Ltd to consolidate ownership of the Alacrán project in Sonora. Azure will retain 100% ownership of the project by issuing to Teck a number of common shares that would result in Teck owning 19.9% of Azure’s outstanding shares on a post-issuance basis, a 0.5% NSR royalty on the project, and a participation right on the proceeds of any sale of the project within a five year period.
  • Goldgroup Mining Inc. announced a final judgement in the United States Disctrict Court for the District of Colorado confirming Goldgroup’s previously announced favorable award in the arbitration against DynaUSA, Inc., ruling DynaUSA having to pay Goldgoup $1.53 M. In addition, the jurisdictional ruling from a Mexico City court that ruled in favor of DynaUSA was challenged in Mexico by Goldgroup and is still pending resolution (Cerro Prieto, Sonora)
  • DynaResource Inc. issued a response to news released by Goldgroup Mining Inc. (see above) in which the United States district court for the district of Colorado confirmed the August 2016 Arbitration award against DynaResource, same that intends to appeal the district court’s May 9 decision. Dyna describes in this news release three different favorable rulings in Mexican courts, same that award Dyna $48 M in damages to be covered by Goldgroup (San Jose de Gracia, Sinaloa).

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

On the image below, quartz-chalcopyrite veinlet hosted by an intrusive rock in core from a project in Michoacan. Picture by Jorge Cirett.

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

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.

Golden Reign and Marlin Gold Enter Into Non Binding Letter of Intent To Combine Businesses

Golden Reign and Marlin Gold 15052018

VANCOUVER, May 15, 2018 – Golden Reign Resources Ltd. (TSX-V: GRR) (“Golden Reign”), Marlin Gold Mining Ltd. (TSX-V: MLN) (“Marlin”) and Sailfish Royalty Corp. (TSX-V: FISH) (“Sailfish”) are pleased to announce that they have entered into a non-binding letter of intent (the “LOI”), together with Wexford Capital LP (“Wexford”), whereby Golden Reign and Marlin will pursue a business combination of Golden Reign’s wholly-owned San Albino-Murra Property (“San Albino”) in Nueva Segovia, Nicaragua and Marlin’s La Trinidad Mine (“La Trinidad”) in Sinaloa, Mexico.

Highlights on the First Week of October, 2017. Mineral Exploration in Mexico

During the 40th week of the year (October 2nd to October 8th, 2017), at least 25 press releases were announced by companies working in Mexico, including two quarterly reports. ON MEXICO ISSUES: a blockade to Goldcorp’s Peñasquito mine entrance in Zacatecas was lifted by assembling a government sponsored round table to assess protesters arguments. ON EXPLORATION: Activity seems to be gaining pace, with ten companies presenting press releases on their properties. In Sonora, Silver Viper has commenced the first drilling campaign on its Clemente project; Aztec Minerals disclosed interesting Au-Cu values from trenches at its Cervantes project; Canuc Resources released drilling results from its San Javier property. In Chihuahua, Sierra Metals informed on thick high-grade intercepts from drill testing deep geophysical targets at its Bolivar mine; Radius Gold disclosed initial rock chip sampling from its Los Tarros property; Harvest Gold announced exploration results on the Cascaritas prospect within its Cerro Cascaron project. In Sinaloa, Santana Minerals released metallurgical results from its Cuitaboca property. In Zacatecas and San Luis Potosi Alset Minerals released lithium and potassium results from auger drilling on 13 additional salars. In Veracruz Almadex Minerals disclosed good assay results on a long interval of its last hole at El Cobre; Mexican Gold informed that the first hole of a new drill campaign at its Las Minas property intersected two mineralized intervals containing chalcopyrite and bornite. ON MINING: Telson announced that mill clean up and refurbishment is nearing completion at its Campo Morado mine in Guerrero. US Antimony is to increase production at three of its four mines in Mexico. Americas Silver produced its first lead and zinc concentrates from the San Rafael mine in Sinaloa. Alio Gold and Coeur Mining presented third quarter 2017 reports.  ON FINANCING: Southern Silver closed the final tranche of its private placement, raising $502 K; Azure Minerals is to seek shareholder approval to share consolidation. ON RESOURCES AND DEVELOPMENT: Candelaria Mining retracted the environmental permit on its Caballo Blanco project in Veracruz.  Kootenay Silver announced assay results from drilling by partner Pan American Silver on its La Negra prospect in Sonora. ON DEALS AND CORPORATE ISSUES: Magellan Resources announced that its purchase of the SDA mill in Nayarit remains on track to completion. Radius Gold signed a binding agreement with a private Mexican company on Los Tarros property in Chihuahua. Prospero Silver received authorization from the TSX on a related third party agreement.

ON MEXICO ISSUES

  • Goldcorp suffered entrance blockades at Peñasquito, in Zacatecas. For a week the entrance to the Peñasquito mine in Zacatecas was blocked by protesters. The blockade was terminated by the establishment, aided by the federal government, of a round table to discuss the protesters grievances. The table is to be leaded by the Zacatecas State government.

ON EXPLORATION

  • Silver Viper Minerals Corp. has mobilized a drill rig to its Clemente project in Sonora. The drill program envisages 2,000 m of diamond core drilling, focusing on the El Mundo and Nuevo Mundo areas, where Ag-Au-base metals mineralization is hosted by quartz shear veins, quartz stockworks and hematitic vein breccias. The best sample to date is from the El Mundo area is 0.5 m wide @ 1,895 g/t Ag, 4.46 g/t Au, 1.9% Pb, 1.6% Zn. The environmental permit for drilling has been approved, with land and access permit agreements in place.
  • Kootenay Silver Inc. reported that Aztec Minerals Corp. disclosed attractive sampling results from trenching in the Jasper prospect at the Cervantes property in Sonora (which is under option from the former by the latter). The new manual trenching connected two previous trenches, extending Cu-Au-Mo mineralization for 92.3 m @ 0.52% Cu, 0.62 g/t Au, 76 ppm Mo, staying open in both directions. The rock is highly leached quartz feldspar porphyry with chrysocolla and neotocite as oxide copper minerals. A 50 by 50 m soil grid was completed over the Jasper project.
  • Alset Minerals Corp. released results from auger sampling on 13 additional salars in Zacatecas and San Luis Potosi. “Of the 13 salars sampled, 9 had average lithium grades exceeding 200 ppm, with 4 salars averaging lithium grades of around 400 ppm and higher…”. Dry lake sediment samples were collected using a hand-held motorized auger, or a hammer and hollow-tube sampling method, and assaying the material collected between 0.5 and 1.0 m of depth. The Caliguey salar averaged 769 ppm Li and 3.4% K; the Hernandez salar averaged 556 ppm Li, 1.6% K; the Chapala salar averaged 416 ppm Li, 1.2% K.
  • Almadex Minerals Ltd. disclosed assays for the last hole at the Norte area of its El Cobre property in Veracruz. Noteworthy intervals comprise 481.65 m @ 0.67 g/t Au, 0.27% Cu, including 187.25 m @ 1.02 g/t Au, 0.33% Cu (from 354.00 to 541.25 m). The hole was drilled to test for continuity of mineralization between two other holes within the area.
  • Sierra Metals Inc. informed that the first four holes to test 22 high priority targets identified with the recently completed Titan 24 geophysical survey intersected wide high-grade copper bodies in three different zones with no previously known mineralization. The intercepts include 25.3 m @ 0.38 g/t Au, 31 g/t Ag, 1.55% Cu, 1.95% Zn; 28.65 m @ 0.34 g/t Au, 34 g/t Ag, 1.97% Cu, 0.91% Zn; 13.05 m @ 1.79 g/t Au, 37 g/t Ag, 2.05% Cu; 33.4 m @ 0.10 g/t Au, 32 g/t Ag, 1.04% Cu, 0.20% Zn. The four intercepts are deep seated, between 340 m and 492.90 m in the core, along length (Note of compiler.- This seems a significant discovery).
  • Canuc Resources Corp. announced that the third hole at its San Javier project in Sonora intersected the Santa Rosa vein in two splays, the first with 0.37 m @ 156 g/t Ag, 0.39 g/t Au, 1.0% Pb, 5.6% Zn, and the second with 1.48 m @ 1,514 g/t Ag, 2.91 g/t Au, 4.2% Pb, 5.6% Zn. Canuc has concluded the agreement to acquire the Tule 1 concession, which envelops the property to the NE, adding considerable strike length to the Santa Rosa vein. In the NE land package is the Carranza breccia zone, with 11 m @ 274 g/t Ag on the surface, and the Cerro Colorado breccia zone, with 11.3 m @ 285 g/t Ag.
  • Radius Gold Inc. has signed a binding agreement with a private Mexican company to option the 473 has Los Tarros project in Chihuahua. Several breccia bodies occur within a 3.5 km by 1 km area, with the largest breccia exceeding 250 m by 250 m. The volcanic hosted explosive breccias are cemented by silica and iron oxides. The average of 26 samples collected is 1.42 g/t Au, 66 g/t Ag. At the Rosario breccia (>150 m by 60 m) an old pit returned 10 m @ 2.95 g/t Au, 18 g/t Ag, staying open in all directions. Other significant breccia bodies include Regalito, La Bufa (the only one hosted in granodiorite), San Nicolas and San Miguel.
  • Mexican Gold Corp. informed that step-out drilling at its Las Minas property in Veracruz intersected two intervals of chalcopyrite-bornite-magnetite mineralization in the first hole drilled beyond the current western limit of the El Dorado/Juan Bran zone. A 3.0 m interval contains magnetite and an estimated chalcopyrite content of up to 3% by volume. An 8.0 m interval further downhole is a mineralized exoskarn with up to an estimated 5% chalcopyrite by volume, and visible bornite and magnetite. Assays are pending on these core-length intervals.
  • Santana Minerals Ltd. reported good results from initial metallurgical test work on composite samples from three drill holes from the Mojardina prospect at its Cuitaboca project in Sinaloa. A 75 micron, 48 hours, bottle-roll standard carbon in leach test on the three holes returned 93.1%, 95.3%, 98.4% silver recoveries respectively; the rougher flotation test achieved 93.6%, 88.2%, and 86.8% silver respectively.
  • Harvest Gold Corp. identified six silver-rich polymetallic veins at the Cascarita prospect of its Cerro Cascaron Project in Chihuahua. High grade silver with strong Pb and Zn values were sampled in historic adits. The six veins are within a 900 m by 300 m corridor, attain up to 3.3 m in width and display colloform and drusiform quartz textures, as well as local amethyst quartz. Vein textures indicating boiling are preserved at one of the veins, as quartz pseudomorphs after bladed calcite. Results include 1.4 m @ 114 g/t Ag, 5.2% Pb, 1.3% Zn; 2.0 m @ 127 g/t Ag, 8.7% Pb, 0.5% Zn; 2.3 m @ 311 g/t Ag, 1.6% Pb, 0.3% Zn; 2.1 m @ 245 g/t Ag, 6.4% Pb, 0.5% Zn; 3.3 m @ 104 g/t Ag, 2.4% Pb, 0.5% Zn.

ON MINING

  • Telson Resources Inc. announced that mill clean up and refurbishment is nearing completion at its Campo Morado mine in Guerrero. Underground mining is being ramped up, having delivered 25 K tonnes to the coarse ore patio. Ore crushing is operational, putting 5 K tonnes to the crushed ore stockpile. Commercial production at a 1,400 tonnes per day (tpd) is projected to be achieved during October, while production levels to the 2,500 tpd mill capacity is to take 6 to 12 months.
  • United States Antimony Corp. plans to increase production at three of its four mines in Mexico. At Wadley, in San Luis Potosi, the gravity mill will process lower grade ore (not direct shipping ore), which could results in a 25-50% increase in production. At Soyatal in Queretaro, direct shipping ore is to be produced once new powder magazines are built. In Zacatecas a mine road to the Guadalupe mines is to be repaired, allowing mining to be resumed at the Santa Monica mine. The Los Juarez mine in Queretaro is awaiting a permit from SEMARNAT for the cyanide circuit at the Puerto Blanco mill.
  • Americas Silver Corp. announced that the first lead and zinc concentrates produced from its San Rafael project at its Cosalá operation in Sinaloa were produced during the last week of September. Commercial production is expected to be reached before the end of the fourth quarter, when the Nuestra Señora mine is expected to enter in care and maintenance.
  • Alio Gold Inc. released 3rd quarter preliminary production results from its San Francisco mine in Sonora. 1.9 M tonnes of ore @ 0.40 g/t Au and 5.2 M tonnes of waste were moved (3.15 waste to ore strip ratio) to produce 19,429 Oz Au, 8,808 Oz Ag. Production guidance stays on track to produce 88 -90 K Oz Au during 2017.
  • Coeur Mining Inc. disclosed third quarter 2017 production results, including figures from its Mexican operations. At Palmarejo, in Chihuahua, 413.1 K tonnes were milled @ 172 g/t Ag, 2.49 g/t Au, achieving recoveries of 83.6% Ag, 83.1% Au, to produce 1.91 M Oz Ag, 28,948 Oz Au

ON FINANCING

  • Southern Silver Exploration Corp. closed the final tranche of its previously reported private placement, for gross proceeds of $502 K. The three tranches gathered total gross proceeds of $3.58 M (Cerro Las Minitas, Durango).
  • Azure Minerals Ltd. is to seek shareholder approval for consolidation of the issued capital through the conversion of every twenty existing shares into one share.

ON RESOURCES AND DEVELOPMENT

  • Candelaria Mining Corp. decided to retract the environmental permit for the Caballo Blanco project in Veracruz, citing the current political climate and upcoming state and federal elections. “…The postponing of the permit will allow Candelaria to optimize certain aspects of the project and improve upon existing and establish new relationships with our stakeholders. “
  • Kootenay Silver Inc. announced the results of 13 infill drill holes completed by Pan American Silver Corp. on its La Negra property in Sonora. Highlighted intercepts are 34.3 m @ 159 g/t Ag (including 8.2 m @ 306 g/t Ag); 17.1 m @ 192 g/t Ag (including 3.55 m @ 597 g/t Ag); 48.7 m @ 281 g/t Ag (including 1.95 m @ 3,004 g/t Ag, 1.0 m @ 2,146 g/t Ag, 5.35 m @ 558 g/t Ag); 21.0 m @ 274 g/t Ag (including 1.1 m @ 3,018 g/t Ag); 31.8 m @ 403 g/t Ag (including 8.85 m @ 1,098 g/t Ag); 29.25 m @ 138 g/t Ag; 38.7 m @ 289 g/t Ag (including 7.6 m @ 674 g/t Ag); 76.35 m @ 236 g/t Ag; 53.8 m @ 174 g/t Ag (including 12.15 m @ 308 g/t Ag); 5.35 m @ 571 g/t Ag.

ON DEALS AND CORPORATE ISSUES

  • Magellan Gold Corp. announced that its purchase of the SDA mill in Nayarit is on track to be closed by the end of October 2017.
  • Radius Gold Inc. has signed a binding agreement with a private Mexican company to option the 473 has Los Tarros project in Chihuahua. Radius can earn a 100% interest in the project by making an immediate payment of US5 K, and staged payments over four years totaling US$1.68 M, of which US$1.2 M is a final payment at the end of the four year period. A 2% NSR can be bought by Radius for US$1 M for each 1%.
  • Prospero Silver Corp. has received TSX approval of the option to own agreement with Exploraciones Altiplano S.A. de C.V. regarding Altiplano’s Buenavista claims in Durango. The agreement constitutes a “related party transaction” under the TSX policies.

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

On the picture below, the Peña Colorada mine pit in Colima. Photo by Jorge Cirett.

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

During the 39th week of the year (September 25th to October 1st, 2017), at least 22 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, No relevant news. ON EXPLORATION, in Sonora, San Marco continues to define the footprint of a porphyry copper system at its 1068 project. In Chihuahua, Kootenay is to drill the Las Venadas zone of its La Cigarra project. In Zacatecas, Arian Silver is to halt exploration in three lithium projects after receiving auger drill results. ON MINING, Telson released details on the sale of concentrate from its Tahuehueto property in Durango. Arian Silver released financial results for the first six months of 2017.  ON FINANCING; Defiance Silver completed the first tranche of its financing for $1.7 M, VVC Exploration has raised CA$900 K and is increasing the offering ceiling to CA$2 M., MX Gold closed a non-brokered private placement for C$4 M and San Marco announced an upcoming private placement for C$1.26 M. Silver Viper completed its IPO raising $3.0 M.  ON RESOURCES AND DEVELOPMENT; Lea Gold commenced the portal development of the 1.3 km ramp at Bermejal in Guerrero.  GoldCorp has achieved 40% completion on the Pyrite Leach Project. Levon informed on the drill definition of a gold rich zone at its Cordero property in Chihuahua. Mexican Gold commenced the phase-2 drilling of its Las Minas project in Veracruz.  ON DEALS AND CORPORATE ISSUES, Sierra Metals and Jinchuan Group signed a MOU for cooperation on the Bahuerachi project in Chihuahua.

ON MEXICO ISSUES

  • No relevant news.

ON EXPLORATION

  • San Marco Resources Inc. announced that the surface alteration and mineralization footprint on its 1068 project in Sonora has been mapped over an area of 1.6 Km x 1.5 km, and is still open in two directions. A stockwork-quartz-veined volcanic lithocap phyllically altered sits on top of a poorly exposed intrusive with potassic alteration and fresh pyrite, chalcopyrite and molybdenite. Semi-continuous channel sampling over part of a new road cut ran 62 m @ 0.1% Cu, 215 ppm Mo, 0.044 g/t Au. Exploration plans include further geologic mapping up to 1 km to the NE and SE, expansion of the rock chip sampling grid and detailed mapping on the lithocap to define drill targets and drilling the potassic core.
  • Kootenay Silver Inc. completed the last hole at Las Venadas zone of its La Cigarra property in Chihuahua. The rig has been mobilized to La Navidad zone in the same project. This zone is 500 m to the east and parallel to the San Gregorio zone, which holds 60% of the mineral resource estimate at La Cigarra. Rock and soil sampling programs completed on La Navidad defined a mineralized area 1,000 m long by 300 m wide that is similar in size and in soil values as in the San Gregorio zone.
  • Arian Silver Corp. informed that in light of assay results from the initial auger drill program carried out in the Pozo Hondo, Columpio and Abundancia projects in Zacatecas, no further exploration in the properties is to be undertaken. The company owns 12 silver mining concessions covering 1,500 has in Zacatecas.

ON MINING

  • Telson Resources Inc. announced the final details of the sale of 155.4 tonnes and 316.4 tonnes of Pb and Zn concentrates respectively, from its Tahuehueto project in Durango, for proceeds of US $1.6 M. The concentrates were produced from 4,123 tonnes of ore mined from the Level 10 of El Creston Zone, grading 6.26 g/t Au, 60 g/t Ag, 2.08% Pb, 5.61% Zn. The recoveries achieved were @ 83.6% Au, 89.3% Ag, 86.1% Pb, 85.5% Zn. Mining is averaging 166 tonnes per day during September 2017, with 2,530 tonnes of ore awaiting transport to the Atocha mill.
  • Arian Silver Corp. released its financial results for the first six months of 2017. At the end of the period the company had total assets of US$1.5 M, of which $0.9 M was cash.

ON FINANCING

  • Defiance Silver Corp. closed the first tranche of its private placement for gross proceeds of $1.72 M. Finder’s fees of $122.9 K were paid in connection with the first tranche of the private placement (San Acacio, Zacatecas).
  • VVC Exploration Corp. has raised to date about CA$900 K and have commitments for an additional $460 K on its previously announced CA$1 M in a non-brokered private placement. The company is increasing the maximum amount of the offering to CA$2 M (Samalayuca copper project, Chihuahua).
  • Silver Viper Minerals Corp. has successfully completed its initial public offering (IPO), for gross proceeds of $3.0 M (Clemente, Sonora).
  • MX Gold Corp. closed a non-brokered private placement, for gross proceeds of C$4 M. Aggregate cash finder’s fees of $15.6 K will be paid (Magistral, Durango).
  • San Marco Resources Inc. is arranging a private placement to raise gross proceeds of up to C$1.26 M (Chunibas, Sonora).

ON RESOURCES AND DEVELOPMENT

  • Lea Gold mining Corp. has commenced portal development for the 1,325 m long exploration ramp at its Bermejal Underground deposit in Guerrero. The US$ 13 M budget includes 3,136 m of ramp and cross-cut development and two ventilation raises totaling 560 vertical m. The Bermejal Underground drilling program is over 50% complete with 28,846 m drilled on 67 holes of the planned 56,000 m in 113 holes. “All holes intersected iron-oxide skarn mineralization as targeted and only two holes …..  were below a 3 gpt over 3 m diluted minimum width threshold” . The mineralization remains open in several directions.
  • GoldCorp Inc. informed the Pyrite Leach project (PLP) at Peñasquito in Zacatecas has achieved 40% completion on its $420 M investment, which is expected to be commissioned three months ahead of schedule, by the fourth quarter of 2018. The PLP is to recover 40% of the gold and 48% of the silver that currently go to the tailings. A prefeasibility study on Eco-Tails is expected by the first quarter of 2018.
  • Levon Resources Ltd. announced that drilling has extended a gold enriched sulfide zone in the northern part of the center of the current resource at its Cordero project in Chihuahua. A total of 5,655 m were drilled in 18 core holes, with results supporting extension of the gold zone for 350 m on strike to the NE. Additional infill resource drilling is needed to completely define the resource internally.
  • Mexican Gold Corp. commenced the phase 2 diamond drilling program at its Las Minitas Cu-Au property in Veracruz. The drill program is to include step-out drilling beyond the current resource at the El Dorado/Juan Bran zone, high-grade intercepts at the Cinco Señores and Las Minillas Drill targeting is to be aided by the ground magnetic and TDEM surveys.

ON DEALS AND CORPORATE ISSUES

  • Sierra Metals Inc. signed a memorandum of understanding (MOU) with Jinchuan Group Co. Ltd., formalizing the intention to cooperate on Jinchuan’s Bahuerachi property in Chihuahua. The Bahuerachi property is adjacent to Sierra´s Bolivar mine, where Sierra has been producing copper since 2012.

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

On the picture below, rock fence with fine grained quartz vein fragments in Chihuahua. Photo by Jorge Cirett.

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Highlights on the Third Week of September, 2017. Mineral Exploration in Mexico

During the 38th week of the year (September 18th to September 24th, 2017), at least 26 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, Primero Mining acknowledged the receipt of US$4.6 M of VAT refunds. ON EXPLORATION, in Sonora, Azure is to begin a 5,000 m drill program at Oposura, and San Marco is re-shaping its exploration strategy in Chunibas, to reflect the new porphyry model for the mineralization. In Chihuahua, Radius is giving shape to a coherent epithermal target at its Amalia project, and Mammoth released trench results from its Tenoriba property. In Hidalgo, Prospero is to start drilling at El Petate. ON MINING, Argonaut poured the first gold from its San Agustin project in Durango. Primero Mining is struggling while ramping up production at San Dimas, in Durango. ON FINANCING, Telson Resources entered into a loan facility for US5 M with Trafigura. McEwen Mining entered into a bought deal financing for US$46.6 M. Alamos Gold increased its revolving credit facility to US$400 M ON RESOURCES AND DEVELOPMENT; Americas Silver released a new resource estimate for its Cosalá operations in Sinaloa. Torex Gold released high-grade intercepts from the sub-sill zone at its El Limon-Guajes mine in Guerrero. Argonaut Gold updated mineral the mineral resource estimate for its La Colorada and El Castillo mines in Sonora and Durango, respectively. Alio Gold received an important permit on its Ana Paula project in Guerrero, and is working on the definitive feasibility study (DFS). ON DEALS AND CORPORATE ISSUES, Rose Petroleum presented an update on its operations in Sinaloa, and some notes on the transferal of its San Dieguito mill in Nayarit to Magellan Gold. Alio Gold is to commence the construction of a 1,200 m long decline at its Ana Paula project in Guerrero. Primero Mining provided an update on its operations, along with a description of its financial struggle. Soleil Capital and Goldplay Exploration are to create a TSX listed company. Goldgroup Mining provided its side of the story on the legal battle with DynaResource Inc.

ON MEXICO ISSUES

  • Primero Mining Inc. acknowledged having received US$4.6 M in VAT refunds from the Mexican authorities in two installments over July and August, and is working closely with the SAT to recover in due time the outstanding US$32 M.

ON EXPLORATION

  • Azure Minerals Ltd. plans to start a 100 diamond hole, 5,000 m drill program at its Oposura property in Sonora during October, once the permits have been received. “Drilling by previous explorers of 85 surface holes tested the mineralised zone over an area of approximately 1,400m (east-west) x 400m (north-south) (see Figure 1). Early drilling by Azure will twin some of these historical holes to assess whether they can be used in defining the deposit and estimating the mineral resource”. With all the historical and recent work compiled Azure has derived an exploration target of 2.5 M tonnes @ 10% – 12% Zn+Pb.
  • Prospero Silver Corp. has received from SEMARNAT the permit to drill the Petate property in Hidalgo. Drilling is to start on September 17th, 2017, with 12 holes to test four targets: Apartadero SE, Apartadero Central, Tajo and Petate #3. “High-level epithermal alteration is exposed over a 5×4 km area with highly anomalous gold and silver hosted in extensive outcrops and float of steep to strata-bound jasperoid.”
  • Radius Gold Inc. released high-grade channel sampling results from the recently optioned Amalia property in Chihuahua. At the Campamento zone, where a 150 m by 300 m zone of intense silicification, brecciation and stockwork veining has been mapped, results include 62 m @ 0.43 g/t Au, 98 g/t Ag; 14 m @ 1.47 g/t Au, 167 g/t Ag; including 7 m @ 2.37 g/t Au, 239 g/t Ag. At the Guadalupe target, a quartz sulfide vein breccia hosted in andesites returned 7 m @ 3.62 g/t Au, 1,048 g/t Ag; 7 m @ 2.4 g/t Au, 188 g/t Ag; 4 m @ 3.92 g/t Au, 888 g/t Ag. At Dulces Nombres the vein in a short tunnel returned 1 m @ 34 g/t Au, 13 g/t Ag; 1 m @ 20.3 g/t Au, 44 g/t Ag; 1.5 m @ 114.5 g/t Au, 57 g/t Ag. Au-Ag mineralization occurs over a vertical interval of 600 m, at multiple targets over 3.5 km of strike length.
  • Mammoth Resources Corp. released channel sample results from 14 trenches at its Tenoriba project in Chihuahua. Results include (true width) 11.5 m @ 0.64 g/t Au, 2 g/t Ag; 16.0 m @ 0.38 g/t Au, 4 g/t Ag; 15.5 m @ 0.99 g/t Au, 6 g/t Ag in the Moreno zone; 7.0 m @ 1.28 g/t Au, 8 g/t Ag; 13.5 m @ 1.50 g/t Au, 3 g/t Ag; 10.0 m @ 0.42 g/t Au, 7 g/t Ag; 6.2 m @ 0.88 g/t Au, 4 g/t Ag at the Carneritos zone; 13.1 m @ 0.66 g/t Au, 1 g/t Ag; 6.4 m @ 0.47 g/t Au, 10 g/t Ag in the Masuparia zone and 6.4 m @ 0.54 g/t Au, 2 g/t Ag in the Cerro Colorado zone.
  • San Marco Resources Inc. is readjusting its exploration strategy to accommodate an evolving geologic model on its Chunibas project in Sonora. The discovery of breccias in the recent core drilling program led to re-mapping and re-logging of the core, and the generation of a larger porphyry related breccia gold model with over printing epithermal quartz-carbonate veining. The surface mineralized footprint is 3 km x 1.5, and still open. The gold mineralization occurs disseminated and vein controlled. The re-logging of the core highlighted an 88 m breccia interval @ 0.37 g/t Au, and several drill holes present magnetite bearing potassic alteration associated with elevated gold grades. To test the property under the new model a magnetic survey is to be undertaken, along with the extension of some soil lines and deeper drill holes.

ON MINING

  • Argonaut Gold Inc. announced the first pour of gold at San Agustin, Durango, as scheduled. Impressive is the claim by the company of having had no lost time accidents during the 10 months construction period.
  • Primero Mining Corp. informed that the expected ramp-up production following successful negotiations with unionized workers has been significantly delayed due to persistent issues with underground equipment reliability, which has impacted development rates and stoping activities. As a result the production guidance has been lowered to 75 K to 85 K Oz AuEq at total cash costs of between $800 and $900 per AuEq Oz and all-in sustaining cost (AISC) of $1,050 to $1,150 per Au Oz.

ON FINANCING

  • Telson Resources Inc. has entered into a loan facility and offtake agreements with Trafigura Mexico, S.A. de C.V., to sell 100% of the lead and zinc concentrate produced at its Campo Morado mine in Guerrero. The US$5 M loan has a three-year term with a six-month grace period followed with 30 repayment installments. The loan facility matures on September 2010 and bears interest at rate equal to LIBOR (3M) plus 5%.
  • McEwen Mining Inc. has entered into an agreement on a bought deal basis under which up to 9 M shares are to be purchased, for gross proceeds of $46.6 M, before deducting underwriting commissions and estimated offering expenses. If all the associated warrants are exercised before the two year expiration date aggregate proceeds are to reach US$74 M.  (El Gallo, Sinaloa).
  • Alamos Gold Inc. has secured amendments to its existing undrawn revolving credit facility, including an increase of the facility from US$150 M to US$400 M on more favourable terms (Mulatos, La Yaqui; Sonora).

ON RESOURCES AND DEVELOPMENT

  • Americas Silver Corp. released an updated mineral reserve and resource estimate for its Cosalá operations in Sinaloa. Proven and probable mineral reserves stand at 4.0 M tonnes @ 100 g/t Ag, 0.02% Cu, 1.6% Pb, 3.9% Zn; Measures and indicated resources include 8.0 M tonnes @ 128 g/t Ag, 0.24% Cu, 0.5% Pb, 1.2% Zn; Inferred mineral resources include 4.1 M tonnes @ 147 g/t Ag, 0.33% Cu, 0.6% Pb, 1.0% Zn. The updated estimate reflects the drilling programs conducted at the property between January 2016 and the end of June 2017.
  • Torex Gold Resources Inc. released high-grade intercepts in the step-out drilling to the NW of the current Sub-Sill resource area, at its El Limon-Guajes mine in Guerrero. Some highlighted core length intercepts comprise 19.3 m @ 41.4 g/t Au, 43 g/t Ag, 2.1% Cu; including 5.6 m @ 69.8 g/t Au, 57 g/t Ag, 1.7% Cu; 35.9 m @ 5.7 g/t Au, including 3.5 m @ 32.2 g/t Au and 3.5 m @ 14.1 g/t Au; 4.8 m @ 8.5 g/t Au, 20 g/t Ag, 1.2% Cu; 6.1 m @ 15.7 g/t Au. A 240 m step-out drill hole intercepted 3.6 m @ 11.6 g/t Au. These results confirm the potential for extending the current resource, already defined in an area of 250 m x 150 m. “The Sub-Sill area is located between the El Limon and El Limon Sur ore deposits and under the El Limon Sill. The Sub-Sill area occurs in the Mesozoic carbonate-rich Morelos Platform, which has been intruded by Paleocene granodiorite stocks, sills and dikes. Skarn-hosted gold mineralization is developed along the contacts of the intrusive rocks and the enclosing carbonate-rich sedimentary rocks”.
  • Argonaut Gold Inc. provided updated pit-constrained mineral resource estimates for its El Castillo and La Colorada mines in Durango and Sonora respectively. At El Castillo measured and indicated resources stand at 63.97 M tonnes @ 0.36 g/t Au, and inferred resources at 1.57 M tonnes @ 0.36 g/t Au, for contained 751 K Oz Au and 18 K Oz Au respectively. At La Colorada indicated resources stand at 29.87 M tonnes @ 0.61 g/t Au, 10 g/t Ag and inferred resources of 1.24 M tonnes @ 0.80 g/t Au, 12 g/t Ag, for contained 596 K OZ Au, 9.9 M Oz Ag and 32 K Oz Au, 488 K Oz Ag respectively.
  • Alio Gold Inc. received approval for its change of land use application from SEMARNAT on its Ana Paula project in Guerrero. A definitive feasibility study (DFS) was initiated on July 2017 and is expected to be completed on the second quarter of 2018. The Pre-feasibility study (PFS) contemplated $137 M in capital for construction of the mine, Alio has $64 M of cash on hand and is looking to raise between $90 and $100 M in project financing.

ON DEALS AND CORPORATE ISSUES

  • Rose Petroleum PLC. Entered into a memorandum of understanding with Magellan Gold Corp. for transferring 100% interest on the San Dieguito de Arriba mill in Nayarit. Magellan is to pay Rose a total consideration of US$1.5 M, with US$1.0 M in cash and US$0.5 M in Magellan restricted common shares. Rose operated the mill for 10 years with ore from its Charay mine in Sinaloa. The company continues to hold the 3,954 has Tango property in Sinaloa, with permitting for drilling Cu-Mo porphyry targets and the Au-Ag vein structure.
  • Alio Gold Inc. has approved the construction of a $16 M, 1,200 m long decline and exploration program at its Ana Paula project in Guerrero. The decline permitting has been approved by SEMARNAT, and mobilization of the contractor is expected to begin in October 2017. In about nine months, once the decline has reached its target, A 20,000 m underground drilling program with 80 holes is to test the high-grade mineralization below the planned pit.
  • Primero Mining Corp. “continues to operate in a cash conservation mode as management works on possible alternatives to refinance or repay its upcoming debt obligation. The Company continues with negotiations on the potential sale of San Dimas or potential renegotiation of its silver stream. Primero had approximately $12 million in cash at August 31st and has fully-drawn its $75 million revolving credit facility (“RCF”). The Company expects to use the proceeds from Black Fox transaction to reduce its total debt position.” “Primero has recently received approximately $4.6 million in Mexican VAT refunds over two instalments in July and August, and is working closely with SAT to arrange for the remaining eligible outstanding VAT amounts totalling $32 million to be refunded in due course.”
  • Soleil Capital Corp. signed a letter of intent (LOI) with Goldplay Exploration Ltd. to create a public TSX listed precious metals exploration company utilizing Goldplay’s exploration strategy and experience in the Rosario district, in Sinaloa. The resulting issuer will be named Goldplay Exploration Ltd.
  • Goldgroup Mining Inc. states that the company was never notified of the court case where DynaResource Inc. was awarded US$48 M (See last week Highlights), and does not recognize any of the claims therein “and is of the belief that such claims are entirely without merit.”

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

On the picture below, high-grade gold milky quartz vein with pyrrothite in Chihuahua, near Batopilas. Photo by Jorge Cirett.

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Highlights on the Third Week of August, 2017. Mineral Exploration in Mexico

During the 33rd week of the year (August 14th to August 20th, 2017), at least 24 press releases were announced by companies working in Mexico, including five quarterly reports. ON MEXICO ISSUES, no relevant news. ON EXPLORATION, in Sonora, Azure reported the acquisition of the Oposura property (formerly Arenillas). In Sinaloa Marlin Gold released results from a twin hole south of its La Trinidad mine, and Santana Minerals reported saw channel samples from its Cuitaboca project. In Veracruz Almadex reported good gold and copper values over a long drill intercept at El Cobre. ON MINING, GoGold, Sierra Metals, Fortuna Silver, Aura Minerals and Starcore presented financial and/or operational results for the last quarter. Telson resources reported the second concentrates shipment from Tahehueto in Durango. ON FINANCING, Primero mining is delisted from the NYSE. Southern Silver is extending the closing of the second tranche of financing. Maverix Metals closed a senior secured loan facility with CFE Ltd.  ON RESOURCES AND DEVELOPMENT, Avino Silver released infill and step-out drilling results from Avino, in Durango. Kootenay  announced the discovery o a new mineralized zone at its La Cigarra property in Chihuahua. Minera Alamos commenced an exploration program focused on resource expansion at La Fortuna in Durango. Consolidated Zinc disclosed more high-grade results from infill and step-out drilling at its Plomosas property in Chihuahua. ON DEALS AND CORPORATE ISSUES, Santacruz Silver completed the sale of the Gavilanes project in Durango to Marlin Gold. Discovery Metals announced the acquisition of multiple properties in Coahuila, including the Puerto Rico listing property.

ON MEXICO ISSUES

  • No relevant news.

ON EXPLORATION

  • Marlin Gold Mining Ltd. announced that a diamond drill hole at the San Cristobal target, 12 km from its La Trinidad mine in Sinaloa intercepted 13.90 m true width (TW) @ 1.19 g/t Au, 21 g/t Ag. The objective of the drill hole was to twin a reverse circulation hole that intersected 0.74 g/t Au over 30 m in 2010. “Reconnaissance geological mapping and sampling (over 1,600 rock chip samples) indicate gold and silver is associated with quartz veins, quartz stockwork, quartz breccia and silicified zones within a four kilometer-wide, northwest-trending structural corridor”.
  • Almadex Minerals Ltd. disclosed results from the best hole to date at the North zone of its El Cobre project in Veracruz. The drill hole intersected multiple zones of intense stockwork veining and potassic alteration with gold and copper mineralization. The 534.9 m intercept @ 0.90 g/t Au, 0.3% Cu includes 144.8 m @ 1.77 g/t Au, 0.45% Cu (which includes 98.0 m @ 1.96 g/t Au, 0.48% Cu.
  • Endeavour Silver Corp. Released results from recent drilling at La Luz vein in its Terronera property in Jalisco. Relevant true width intercepts of 1.7 m @ 16.2 g/t Au, 45 g/t Ag; 1.3 m @ 20.9 g/t Ag, 25 g/t Ag; 1.4 m @ 0.2 g/t Au, 419 g/t Ag; 1.0 m @ 2.3 g/t Au, 73 g/t Ag; 1.1 m @ 2.7 g/t Au, 91 g/t Ag; 1.1 m @ 20.3 g/t Au, 384 g/t Ag, 1.2 m @ 16.5 g/t Au, 38 g/t Ag; 1.2 m @ 7.6 g/t Au, 12 g/t Ag. Anomalous values of up to 0.15% of Cu, Pb and Zinc are part of the results.
  • Azure Minerals Ltd. announced the acquisition of 100% of the Zn-Pb-Ag Oposura project (previously known as Arenillas) in Sonora, without elaborating on the terms. About 100 drill holes were completed previously on the property, and a non JORC compliant resource estimated. Sampling of the mineralized zone returned multiple assays over 30% Pb+Zn, with significant silver values. “The overall mineralised zone is up to nine metres thick, averages about three metres in true width, and demonstrates good continuity of width and grade”.
  • Santana Minerals Ltd. reported significant diamond saw channel sampling results from the La Plata prospect within its Cuitaboca project in Sinaloa. The results over accessible outcrops include 2.45 m @ 362 g/t Ag and 4.60 m @ 295 g/t Ag. These results represent the continuity 300 m east of previous sampling, extending the potential strike of the interpreted La Plata vein system to approximately 2 km.
  • Galore Resources Inc. disclosed assay results from seven rock chip samples collected on El Alamo target on its Dos Santos project in Zacatecas. The samples collected in breccias and jasperoids assayed 0.8 to 18.6 g/t Au. Drilling plans envisage ten 150 to 300 m deep holes.

ON MINING

  • Telson Resources Inc. announced the second shipment of 128 tonnes of lead concentrate and 227 tonnes of zinc concentrate from the Tahuehueto mine. The metal recoveries were 83.5% Au, 89.3% Ag, 86.1% Pb, 85.4% Zn.
  • GoGold Resources Inc. released its financial results for the quarter ending on June 2017 (their Q3). During the period 2,337 Oz Au, 151,422 Oz Ag were produced at the Parral tailings project at cash cost of $9.61 per AgEq Oz. The Santa Gertrudis high grade gold project produced 320 Oz Au. The overall cash cost was $16.2 per AgEq Oz and the all-in sustaining cost (AISC) $25.91. At the end of the quarter the company had a working capital deficit of $35.1 M. Management is exploring alternatives to de-lever its balance sheet.
  • Sierra Metals Inc. reported consolidated results for the second quarter of 2017. At Bolivar in Chihuahua the cash cost per CuEq Lb was $1.35 and AISC $2.49 per CuEq Lb for the period, while at Cusi, also in Chihuahua, the cash cost per AgEq Oz was $20.60 and AISC $49.13. At Bolivar 775 m of mine development were completed to prepare stopes for mine production, and 11,236 m were drilled at El Gallo, Bolivar Northwest and Bolivar West zones. At Cusi mine development totaled 1,551 m and 2,021 m of infill drilling were completed and further 15,566 m were drilled on the Santa Rosa de Lima orebody. Cash and cash equivalents of $31.1 M at the end of the period.
  • Fortuna Silver Mines Inc. reported its consolidated financial results for Q2 2017. At San Jose in Oaxaca 268.4 K tonnes were milled (3,016 tonnes per day, or tpd) @ 238 g/t Ag, 1.82 g/t Au, and a recovery rate of 92% Ag, 92% Au to produce 1.88 M Oz Ag, 14,410 Oz Au. Cash cost net of by-product credits was $1.03 per Ag Oz and AISC $7.67 per Ag Oz. Cash and short term investments of $16.7 M at the end of the period.
  • Aura Minerals Inc, released Q2 2017 financial and operating results. Aura owns the idle Aranzazu mine in Zacatecas, which is under care and maintenance. The company is evaluating options to maximize value of this asset.
  • Starcore International Mines Ltd. announced production results for the first quarter of fiscal 2018, ended July 31, 2017. During the quarter at the San Martin mine in Queretaro 69.7 K tonnes were milled @ 1.97 g/t Au, 12.6 g/t Ag with recoveries of 85.0% Au, 51.2% Ag to produce 3,888 Oz AuEq. Furthermore, the Altiplano Facility received 37. 2 tonnes of concentrate and 24.2 tonnes of slag containing approximately 150 Oz Au and 25.5 K Oz Ag.

ON FINANCING

  • Primero Mining Corp. has received formal notification from the New York Stock Exchange of its intention to initiate delisting procedures, as the company is no longer suitable for listing based on “abnormally low” price levels. The company continues trading on the Toronto Stock Exchange.
  • Southern Silver Exploration Corp. is extending the final closing date of its previously announced brokered private placement until September 15th, 2017. The first tranche closed in June, raising $2.55 M of the intended goal of $5.0 M on two tranches.
  • Maverix Metals Inc. closed the previously announced senior secured loan facility with CEF Ltd. for US$20 M. The company has closed the previously announced private placement to CEF and Pan Ameican Silver Corp. for total proceeds of $9.88 M. Maverix now has over C$44 M available to acquire additional precious metals royalties (Royalties from La Colorada in Zacatecas, San Jose in Oaxaca).

ON RESOURCES AND DEVELOPMENT

  • Avino Silver & Gold Mines Ltd. release further results from the extended 22 hole drill program comprising 3,374 m at the Avino mine in Durango. The program focused on tonnage and grade of the area between the San Luis workings and the Elena Tolosa current production area. Relevant results include 9.30 m @ 0.39 g/t Au, 29 g/t Ag, 0.25% Cu; 22.65 m @ 1.48 g/t Au, 41 g/t Ag, 0.20% Cu; 34.5 m @ 0.35 g/t Au, 88 g/t Ag, 0.82% Cu; 25.40 m @ 0.68 g/t Au, 47 g/t Ag, 0.08% Cu; 43.05 m @ 0.50 g/t Au, 33 g/t Ag, 0.08% Cu; 8.85 m @ 0.09 g/t Au, 61 g/t Ag, 0.77% Cu; 8.45 m @ 1.36 g/t Au, 7 g/t Ag, 0.07% Cu; 23.40 m @ 1.09 g/t Au, 167 g/t Ag, 0.38% Cu; 40.45 m @ 0.56 g/t Au, 42 g/t Ag, 0.19% Cu; 42.05 m @ 0.49 g/t Au, 103 g/t Ag, 0.18% Cu. Three areas are scheduled to have exploration drilling: San Gonzalo (1,200 m), The Avino-San Juventino intersection (2,000 m) and the Chirumbo mining area (2,000 m ).
  • Kootenay Silver Inc. announced the discovery of a new mineralized zone within La Venada target at its La Cigarra property in Chihuahua. This area is blind to the surface, 1 km south of the La Cigarra resource. “More than 250 meters in core length of quartz-calcite and quartz vein breccia and veining within altered sediments was intercepted…”. The new zone intercept comprises 29.5 m @ 91 g/t Ag, including 19.2 m @ 123 g/t Ag. Results from the Venada zone include 12 m @ 73 g/t Ag; 10 m @ 47 g/t Ag; 19.2 m @ 123 g/t Ag (including 2.0 m @ 435 g/t Ag; and 10.7 m @ 114 g/t Ag); 9.5 m @ 107 g/t Ag. All intervals contain values of up to 0.6% Pb and 3.3% Zn.
  • Minera Alamos Inc. has initiated an exploration program aimed to expand resources at La Fortuna property in Durango. Data compilation, surface mapping, drill targeting and  a new geophysical survey are to be completed on projections of the La Fortuna resource zone, the PN area, the Ramada zone, Cerro Pelon zone and the far southern area.
  • Consolidated Zinc Ltd. released results from its resource expansion drilling program at its Plomosas project in Chihuahua. True width intercepts include: 0.40 m @ 3.8% Zn, 1.0% Pb; 1.75 m @ 9.4% Zn, 1.7% Pb; 0.85 m @ 4.4% Zn, 0.3% Pb; 0.90 m @ 10.9% Zn, 6.7% Pb; 0.95 m @ 3.7% Zn, nil Pb. Length of drill hole intersections include 1.50 m @ 8.0% Zn, nil Pb; 1.35 m @ 34.7% Zn, nil Pb; 0.5 m @ 5.0% Zn, 0.2% Pb; 0.75 m @ 4.2% Zn, 0.3% Pb; 0.5 m @ 2.3% Zn, 1.1% Pb; 0.5 m @ 9.4% Zn, 0.3% Pb; 1.0 m @ 7.2% Zn, 0.4% Pb.

ON DEALS AND CORPORATE ISSUES

  • Santacruz Silver Mining Ltd. informed the sale of 100% interest in the Gavilanes property in Durango to Marlin Gold Mining Ltd. has been completed.
  • Discovery Metals Corp. is now classified as a Tier 2 Mining Issuer on the TSX Venture Exchange, with the completion of the transaction on the Puerto Rico property agreement. Under the agreement Discovery has done a $300 K payment, the issuing 500 K shares to the vendors, and pledged to make and additional US$300 K payment and issuing a further 500 K shares upon government drilling approval, and the issuance of four tranches of 500 K shares on each anniversary of the closing after the second anniversary. A final issuance of shares representing 30% of the company’s issued and outstanding capital is also included, with some clauses that can take the vendors stake to 35%. Discovery also has to spend not less than US$2 M within one year of the drilling approval and not less than $12.5 M within five years to exercise the option.
  • Discovery Metals Inc. For acquiring the Renata project in Ocampo, Coahuila a US $100 K payment is to be made to the vendors within three months of the closing. Not less than US$2 M have to be spent within three years of the closing, and in the case of sale to a third party the vendors are to receive the first US$3 M of the proceeds. On La Kika property in Coahuila, Discovery has paid US$45 K on closing, and has to spend not less than US$2 M within five years, the issuance to the vendors of 1 M shares and a royalty of 30% on the operating profits of the first 450 K tonnes shipped, or a 2% NSR otherwise. Additional option agreements involve La Minerva, Santa Rosa and Jemi/Rare Earth concessions..

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

On the picture below, low sulfidation quartz vein stockwork in felsic volcanic rocks, in the Sierra Madre of Chihuahua. Photo by Jorge Cirett.

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Highlights on the First Week of May, 2017. Mineral Exploration in Mexico

During the 18th week of the year (May 1st to May 7th, 2017), at least 29 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, no relevant news this week. ON EXPLORATION, In Sonora Alix released metallurgical tests results from its Elektra lithium property, San Marco is preparing to drill Chunibas, while confirming the presence of a porphyry copper system at project 1068, and Aztec informed that is likely to drill its Cervantes property on the same State. In Zacatecas Canasil disclosed high grade drill results from La Esperanza, Galore commenced a drill program at Dos Santos and Zenith disclosed advance on its lithium properties. ON MINING, Ten companies presented first quarter 2017 financial results: Marlin Gold, Santacruz Silver, Primero Mining, Gold Resource, Torex Gold, Endeavour Silver, McEwen Mining, Alamos Gold, Great Panther and First Majestic. ON FINANCING, Three companies, Evrim Resources, Aztec Minerals and Almaden Minerals presented information on financing rounds for $4.2 M, C$4.02 M and $15 M respectively. ON RESOURCES AND DEVELOPMENT, Consolidated Zinc presented an activities report on its Plomosas property in Chihuahua, and Alamos Gold released information on exploration on the Mulatos district in Sonora, with a hefty budget. ON DEALS AND CORPORATE ISSUES, Fortuna Silver presented an update on its MTCO and disclosed it is soon to comply with the regulatory agencies requested paperwork. Southern Silver entered into an agreement with La Cuesta to buy two properties adjacent to its Cerro Las Minas property in Durango.

ON MEXICO ISSUES

  • No relevant news this week

ON EXPLORATION

  • Alix Resources Corp. announced preliminary metallurgical tests released by its JV partner Lithium Australia ML, from the Agua Fria prospect, part of its Elektra project in Sonora. Preliminary sulphuric acid shaker tests were carried out at room temperature for a period of four hours, with Lithium extraction attaining up to 85%.
  • Zenith Minerals Ltd. is exploring its three lithium properties in Zacatecas, funded by partner Bradda Head Ltd. Surface sampling has been completed, with results pending, on the Zacatecas Li brine properties.
  • San Marco Resources Inc. informed that field work on its 1068 project has confirmed and expanded the size potential of a porphyry copper system. The work that included geological and alteration mapping, stream sediment and rock chip sampling, and petrographic samples increased the phyllic alteration zone to 1,000 x 450 m, with an internal zone of strong phyllic stockwork in the volcanic rock lithocap. The drilling application is in process and surface rights access have been secured over the main targets.
  • Canasil Resources Inc. disclosed assay results for three drill holes at its La Esperanza project in Zacatecas. True width (TW) intercepts include 1,87 m @ 231 g/t Ag, 1.2% Zn, 1.4% Pb; 11.23 m @ 0.74 g/t Au, 219 g/t Ag, 0.9% Zn, 0.4% Pb; 2.07 m @ 261 g/t Ag, 2.1% Zn, 0.9% Pb; 2.75 m @ 2.76 g/t Au, 552 g/t Ag, 1.1% Zn, 0.6% Pb; 1.51 m @ 0.39 g/t Au, 256 g/t Ag, 1.7% Zn, 0.7% Pb. The vein system is open in all directions, and the mineralization intercepted is interpreted as part of the upper part of the system.
  • Aztec Minerals Corp. expects to drill test the California target of its Cervantes property in Sonora, after the rainy season late this summer.
  • San Marco Resources Inc. is preparing to drill its Chunibas project in Sonora. The Chunibas targets are a series of high-grade gold bearing veins hosted in intrusive rocks. There are five main vein zones: Santa Rosa, Argentina, Santa Fe, Guasima, and Western, which comprise a corridor 750 m wide and 1.5 km long. Grades of up to 46 g/t Au have been obtained from the one to two metre-wide structures.
  • Galore Resources Inc. commenced a 3,500 m diamond drill program at its Dos Santos property in Zacatecas. The first drill hole began testing the main fault/vein system prevalent on Galore’s San Jose claim.

ON MINING

  • Marlin Gold Mining Ltd. presented financial results for 2016, which include total assets for C$102.2 M, and total liabilities of C$73.3 M for a total of 28.83 M Equity.
  • Santacruz Silver Mining Ltd. reported financial and operating results for 2016. During the year Santacruz restructured its silver loan agreement with JMET LLC and divested from the San Felipe and El Gachi projects in Sonora, in order to reduce debt obligations. The company processed 42,746 tonnes of ore to produce 200.1 K Oz AgEq, at cash cost $23.97 per AgEq Oz, and AISC $26.15 per AgEq Oz. The company continues with its operations at Veta Grande, Zacatecas, working on the Guadalupana, Garcia and the Choros mines, while the Rosario mill in San Luis Potosi is processing ore from the Cinco Estrellas mine.
  • Primero Mining Corp. reported first quarter 2017 results, including figures from its San Dimas property in Durango. The San Dimas mine was subject to an unionized strike that left only 45 working days on the quarter, but the new work agreement sets better terms for more competitive operations. Total production was 10,118 Oz Au, 0.62 M Oz Ag, at cash cost $827 and AISC of $1,335. The mine expects to produce between 90 K and 100 K Oz AuEq during 2017. At March 31, 2017, the company had $30.6 M in cash and $15 M available under its line of credit.
  • Gold Resource Corp. presented Q1 2017 results. At its El Aguila operations in Oaxaca 101.3 K tonnes were milled at a rate of 1,206 tpd, and an average grade of 2.42 g/t Au, 143 g/t Ag, 0.28% Cu, 1.16 % Pb, 3.07% Zn. Recoveries were 86% Au; 92% Ag, 78% Cu, 76% Pb, 85% Zn, to achieve the production of 6,747 Oz Au, 427.9 K Oz Ag, 220 tonnes Cu, 927 tonnes Pb, 2,149 tonnes Zn. Total cash cost was $980 per Au-AgEq Oz before by-product credits, $263 Au-AgEq Oz after by-product credits and all-in sustaining cost of $920 per “precious metal gold equivalent ounce sold” (??).
  • Torex Gold Resources Inc. disclosed production and financial results for Q1 2017. 941 K tonnes were processed @ 2.49 g/t Au, and a recovery rate of 85% to produce 70,887 Oz Au at $671 cash cost and AISC $923 per Au Oz. During the period a maiden underground resource was announced, containing 324 K inferred and 89 K indicated Au Oz. The cash balance at the end of March was $108.5 M (of which $14.6 M is restricted).
  • Endeavour Silver released Q1 2017 financial results, with the production of 1.08 M Oz Ag, 11,724 Oz Au at cash cost $7.81 per Ag Oz and all-in sustaining cost of $18.24 per Ag Oz net of gold credits. During the period high grade results were disclosed for Terronera, in Jalisco, the decision to develop the El Cubo mine in Guanajuato was taken and announced a robust PFS on the Terronera project. Cash and cash equivalents stand at $70.5 M at the end of the period (Guanacevi, Durango; El Cubo and Bolañitos, Guanajuato).
  • McEwen Mining Inc. reported financial results for Q1 2017, including figures from its El Gallo property in Sinaloa, where 9,730 Oz Au, 722.8 K Oz Ag were produced at cash cost $564 per AuEq Oz and AISC $668 per AuEq Oz co-product. At the end of the period cash and cash equivalents stood at $55.1 M.
  • Alamos Gold Inc. presented its financial and operational results for the first quarter of 2017, including figures from its Mexican operations. At Mulatos and El Chanate in Sonora 40 K and 15.8 K Oz Au were produced at cash cost $920 and $1,144 per Au Oz, and all-in sustaining cost $920, $1,187 per Au Oz respectively. At Mulatos 1.8 M tonnes of ore were mined in the open pit, 1.89 M tonnes of waste were moved (Waste to ore ratio 1.04), 1.69 M tonnes were crushed and stacked @ 0.86 g/t Au, while 35.7 K tonnes @ 8.88 g/t Au were mined from underground operations and milled. The recovery rate stood at 70%. At El Chanate 906 K tonnes of ore were mined, 7.56 M tonnes of waste moved (Waste to ore ratio 7.34), 747.9 K tonnes @ 0.53 g/t Au were crushed and staked on the heaps. The waste to ore ratio is higher than usual due to a scheduled pit pushback that will extend into the second quarter. Cash and cash equivalents stand at $479.2 M at the end of the period.
  • Great Panther Silver Ltd. reported first quarter 2017 financial results. From its operations at Topia, Durango, and San Ignacio and the Guanajuato mine complex in Guanajuato, 82.6 K tonnes were milled, producing 366.4 K Oz Ag, 5,178 Oz Au at cash cost $10.99 per AgEq Oz, and AISC $19.10 per AgEq Oz. At Topia, the company is struggling to comply with one of the SEMERANT (environmental agency) requirements, with the continuity of operations at risk. Cash and short-term deposits stand at $53.2 M at the end of the period.
  • First Majestic Silver Corp. announced Q1 2017 financial results. During the period 822.3 K tonnes were milled, to produce 2.7 M Oz Ag, or 4.27 M Oz AgEq at cash cost $6.68 and all-in sustaining cost $12.21. At the end of such period cash and cash equivalents stood at $127.6 M.First Majestic Q1 2017 operating cost1

ON FINANCING

  • Evrim Resources Corp. has further increased its private placement to raise gross proceeds of $4.2 M (Ermitaño, Sonora, Cerro Cascaron, Chihuahua).
  • Aztec Minerals Corp. completed its IPO, for total gross proceeds of C$4.02 M (Cervantes, Sonora).
  • Almaden Minerals Ltd. entered into an agreement to raise, in a private placement basis, up to $15 M (Ixtaca, Puebla).

ON RESOURCES AND DEVELOPMENT

  • Consolidated Zinc Ltd. presented a quarterly update on activities at its Plomosas property in Chihuahua. A scoping study is in progress, which includes the assessment on the possibility to re-start the mine, targeting a 200-400 tonnes per day (tpd) operation. Exploration efforts have shown new areas of mineralization, as the underground Tres Amigos South, and Carola South areas, with 40 samples averaging 20% combined Pb-Zn, and surface exploration includes the drilling of the Tres Amigos North zone.
  • Alamos Gold Inc. presented exploration and development activities for the first quarter 2017, including information from its Mexican properties. In Sonora, development continues at La Yaqui, where $5.3 M were spent during the period and further $7.0 are to be spent to complete construction of the mine that is expected to produce 25 K Oz Au per year. At La Yaqui Grande also 9,227 m of drilling in 46 holes were collared, with many results still pending. The exploration budget for the Mulatos district is of $17 M, now focusing beyond La Yaqui and Cerro Pelon, as new targets emerge, including Los Bajios, La Yaqui Norte, El Refugio, El Halcon and El Carricito.

ON DEALS AND CORPORATE ISSUES

  • Fortuna Silver Mines Inc. provided an update on the ongoing regulatory review of the Company’s 2015 annual filings by the United States Securities and Exchange Commission (SEC), and the management cease trade order (MCTO) it is subject to. Fortuna reported that the “SEC has verbally communicated it will accept the Company’s use of inferred resources for the calculation of depletion expense, provided that the Company includes additional disclosure regarding these calculations”. It anticipates it will file the needed documents in the coming weeks, not later than May 30, 2017.
  • Southern Silver Exploration Corp. acquired claims adjacent to the SW of its Cerro Las Minitas project in Durango. The claim package comprises two concessions, Biznagas and Los Lenchos, contiguous to the SW to Southern Silver’s concessions. Southern Silver has agreed to make to La Cuesta International Inc. “periodic payments on a semi-annual basis accelerating from $5,000 to $25,000 over a ninety-six month period and a 1% NSR with such periodic payments being credited to NSR payments. Subsequent to payment of $5,000,000 in NSR payments the royalty is reduced to 0.5%. All monetary references are to U. S. dollars.”

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

On the picture below, Potassic feldspar alteration in diorite with quartz-barite veinlets, Central Chiapas. Photo by Jorge Cirett.

Diorite, strong potassic alteration, chlorite in fracures and barite veinlets

Aztec Minerals Completes $4 Million Initial Public Offering; Shares to Commence Trading on TSX-V, Symbol “AZT” on May 4, 2017

http://www.fscwire.com/newsrelease/aztec-minerals-completes-4-million-initial-public-offering-shares-commence-trading-tsx-v

Vancouver, BC (FSCwire)Aztec Minerals Corp. (AZT: TSX-V) (“Aztec”) is pleased to announce that it has completed a CA$4 million Initial Public Offering (“IPO”) and listing as a Tier 2 company on the TSX Venture Exchange (“TSX-V”).   Aztec’s common shares are expected to commence trading on the TSXV under the symbol “AZT” on May 4, 2017.

 

Haywood Securities Inc. (“Haywood”) acted as Aztec’s exclusive agent in respect of the IPO, which consisted of the issuance of 10,000,000 units (“Unit”) at a price of CA$0.35 per Unit for initial gross proceeds of CA$3,500,000.  Each Unit is comprised of one common share and one-half of a transferable common share purchase warrant (“Warrant”), with each full Warrant being exercisable to purchase one additional common share at an exercise price of CA$0.50 for 24 months from the closing date of the IPO.  In addition, Haywood exercised its option to sell up to an additional 1,500,000 Units of Aztec (“Over-Allotment Option”) for total gross proceeds of CA$4,025,000.

 

Coeur Mining, Inc. subscribed for 1,919,876 Units of the IPO which represents 9.99% of the issued shares on a partially diluted basis upon completion of the IPO and Over-Allotment Option.

 

Gross proceeds of CA$4.0 million from the IPO will be directed primarily to exploring Aztec’s Cervantes Property, a road accessible porphyry gold-copper prospect located in the state of Sonora, Mexico, approximately 50km west of the Mulatos gold mine of Alamos Gold and about 265km southeast of the Buenavista del cobre (Cananea) copper mine of IMMSA.