The Mining and Exploration News in Mexico: Highlights on the First Week of May, 2022. 

Phyllic alteration

By Miguel A Heredia

During the 18th week of the year (May 2nd to May 8th, 2022), at least 23 press releases were announced by companies working in Mexico, and 6 news published by the media, with ten reporting resources and developments of their properties, six commenting on Mexican issues, four disclosing deals and corporate issues, four informing on exploration results, three communicating production and financial results, and two discussing social issues. ON MEXICO ISSUES, Torex Gold announced the investment of USD $848M to develop its Media Luna project in Guerrero. Expo Minero Chihuahua 2022 closed its doors with the attendance of 15,610 people. Arcelor Mittal announced that it will invest USD $150M to boost the iron mining in Michoacán. According to Miner Deck, one company working in Mexico participated in the best eight gold intercepts of the week, and two in the best seven silver intercepts of the week. ON EXPLORATION, In Sonora, Aztec Minerals-Kootenay JV released results from California and Jasper targets within its Cervantes project, and Canuc provided an update on its exploration program at its San Javier project. In Chihuahua, Kootenay announced that it will commence a 15,000m drilling program at its Columba project. In Coahuila, Monumental announced the results of a geophysical survey recently completed at its Jemi Heavy Rare Earth Elements project. ON MINING, Altaley reported Q4, and full year 2021 production and financial results from its Campo Morado mine in Guerrero. Coeur Mining reported Q1, 2022 production and financial results from its Palmarejo mine in Chihuahua. Santacruz reported Q4 and full year 2021 consolidated production and financial results from their Mexican operation mines. ON FINANCING, no relevant news.  ON RESOURCES AND DEVELOPMENT, Capitan Mining released results from 5 RC holes collared at its Jesus Maria Silver Zone at the Cruz de Plata project (former Peñoles project) in Durango. Zacatecas Silver received permits for 30 drill pads at El Cristo Vein System within its Zacatecas property. Sonoro Gold filed an Environmental Impact Statement or Manifestación de Impacto Ambiental (MIA) for its Cerro Caliche property in Sonora.  Orex-Pan American Silver JV received a permit to drill 2,500-3,000m at its Sandra project in Durango. Southern Silver reported drilling results from its Cerro Las Minitas project in Durango. Silver Dollar released the remaining assay results from the phase 1 drilling program completed at its la Joya project in Durango. Sierra Madre reported results of the last four holes collared at its Tepic project in Nayarit. Golden Tag announced results from 2 holes drilled at its San Diego project in Durango. Guanajuato Silver reported drill results from its ongoing exploration programs at its El Cubo mine and El Pinguico projects in Guanajuato. Prime Mining announced new results from 17 holes drilled at Zapote North and Mariposa areas within its Los Reyes project in Sinaloa. ON DEALS AND CORPORATE ISSUES, Golden Minerals announced the appointment of its COO (Rodeo project, Durango). Vizsla announced the appointments of its COO and VP of Exploration (Panuco project, Sinaloa). Orogen and the Riverside-BHP JV signed an option agreement for the Llano de Nogal project in Sonora. ON SOCIAL RESPONSIBILITY, Esperanza Silver de México obtained the support of the Tetlama community in Morelos for the Esperanza project. Alamos Gold has generated 2,200 new jobs in the last two years for the construction of its La Yaqui Grande mine in Sonora.

ON MEXICO ISSUE

  • Torex Gold Resources Inc., announced the investment of USD $848M to develop its Media Luna project in Guerrero to bring it into commercial production by the end of 2024. The initial capital investment in the Media Luna Project includes USD $85M of underground mine development during the pre-commercial mining period, between Q4, 2023 and Q4, 2024. The initial capital required to develop the Media Luna Project excludes USD $124M of direct project expenses incurred before April 1, 2022, of which USD $37M are related to the Guajes Tunnel and USD $28M to the development of the Upper and Lower South Portal. Of the direct expenses of the project, the largest capital expenditures are related to the development of the underground mine (USD $173M), access to the deposit through the Guajes Tunnel (USD $76M), as well as the Upper and Lower South Portal (USD $40M), improvements to the process plant (USD $98M) and tailings/paste plant (USD $78M). Of indirect expenses, the largest components are contingency costs (USD $100M).
  • Expo Minero Chihuahua 2022 closed its doors with the attendance of 15,610 people. For four days, from April 28 to May 1, the attendees learned about the importance of the mining industry in the development of Mexico and its usefulness in everyday life.
  • Arcelor Mittal Mexico announced that it will invest USD $150M to boost the iron mining in Michoacán. The company also stated that it will increase the domestic rolled steel production from 2.5M to 5.3M tonnes.
  • According to Miner Deck, one company working in Mexico was in the best eight drill intercepts of the week.  Aztec Minerals-Kootenay JV was eight with 136.8m @ 1.486 g/t Au at Cervantes project in Sonora.
  • According to Miner Deck, two of the best silver drill intercepts of the week were drilled by companies working in Mexico. Golden Tag was first with 395m @ 35 g/t Ag at San Diego project in Durango, and Capitan Mining was seventh with 16.8m @ 291 g/t Ag at Cruz de Plata project in Durango.

ON EXPLORATION

  • Aztec Minerals Corp – Kootenay Silver Inc. JV released results from the California and Jasper targets within its Cervantes project in Sonora. Drilling highlights include hole JAS22-001 with 0.33 g/t Au over 9.1m, with 150m visible Cu oxides and secondary sulphides in mineralized quartz feldspar porphyry intrusive, sediments and hydrothermal breccia; hole CAL22-017 with 0.31 g/t Au over 24.3m, and 1.65 g/t Au over 6.1m in mineralized quartz feldspar porphyry intrusive, sediments and hydrothermal breccia; hole CAL22-016 with 0.47 g/t Au over 56.2m, and 0.35 g/t Au over 13.7m in mineralized porphyries and hydrothermal breccia; and hole CAL22-015 with 0.42 g/t Au over 68.4m, and 2.25 g/t Au over 10.6m in mineralized porphyries and hydrothermal breccia. These drill results extended the known mineralized zone at depth and over 350m to the north onto the California North target and also to the south on the eastern end of the California zone. The company reported that the phase 2 RC drilling program at the Cervantes property is completed and consisted of 26 holes totalling 4,649m.
  • Canuc Resources Corporation provided an update on its exploration program at its San Javier project in Sonora. On the Silver Mountain Zone, the 63-sample grid covered the central part of a NE-SW trending magnetic high in the north part of the San Javier project area. Within the soil grid, samples ranging from 5,123 to 36,671 ppb Ag (5 to 36 g/t) define a 50 to 100 m wide trend that extends for approximately 300 m across the grid. Only 7 of the 63 samples collected contained less that 1 g/t Ag and. The Ag anomaly is accompanied by a modest Au anomaly having values ranging from 38.6 to 87.5 ppb within a relatively high 2.0 to 32.5 background. Only 9 samples contained less than 5.0 ppb Au. On the Gold Zone, the company excavated 3,295m of trenches ranging from 65m to 638m in width. From these trenches, 1,829 channel samples have been collected and additional 46 samples have been collected from various locations within the trend. Results have been reported only on the first 3 trenches which returned elevated gold and copper values. Sampling results are still pending for the rest of the trenches. On the Copper-Gold Stockwork Zone, a total of 22 samples were collected from 3 locations on the north flank of a donut shaped magnetic high in the north–central part of the property. Average grade of the sampling is 0.38% Cu, 0.29 g/t Au, and 3.9 g/t Ag. Canuc plans to cover with soil samples the southwest extension of the strong Ag anomaly referred as Silver Anomaly target; to carry out a detailed mapping on at least 40 know mineralized zones within the property, as well as along the 11 trenches excavated across the Gold Zone, and in the area of the Stockwork Copper-Gold Zone, to provide necessary information in advance of drilling.
  • Kootenay Silver Inc., announced that it will commence a 15,000m drilling program at its Columba project in Chihuahua. Initial focus of this program will be on deeper drill testing on the F Vein and expanding on the D and B Vein intercepts, as well as explore the JZ Zone located 700 meters east of the F Vein; and the East Block located 200 meters east form the JZ Zone.
  • Monumental Minerals Corp., announced the results of a heli-borne magnetic, radiometric, and very-low frequency electromagnetic (VLF-EM) geophysical survey recently completed at its Jemi Heavy Rare Earth Elements (HREE) project in Coahuila. The geophysical survey confirmed that a significantly larger area of the property is prospective for HREE (from approximately 1 km to 10 km of prospective strike length), and defined two parallel 8 km arcuate anomalies that occur along the south and west margin of the Sierra La Vasca intrusion complex. The company announced that the next step is to carry out a rapid evaluation and prioritization of targets for diamond drill testing.

ON MINING

  • Altaley Mining Corporation reported Q4, and full year 2021 production and financial results from its Campo Morado mine in Guerrero. In Q4, 2021 the company processed 183,091 tonnes to produce 12,209 tonnes of Zn concentrate grading 46% Zn with metallurgical recovery of 71%, and 2,691 tonnes of Pb concentrate grading 22% Pb with metallurgical recovery of 30% respectively, at cash and all in sustaining cost (AISC) of USD $0.74 and USD $0.95 per Lb Zn respectively. Altaley reported gross revenues of CAD $29.7M, mine operating profit of CAD $10.1M, income for the period of CAD $20.6M, and cash of CAD $3.04M. In the full year 2021, the company processed 689,963 tonnes to produce 45,778 tonnes of Zn concentrate grading 46% Zn, 2.12 g/t Au, and 658 g/t Ag, with metallurgical recovery of 71% for Zn, and 9,936 tonnes of Pb concentrate grading 22%, 1.65% Cu, 6.08 g/t Au, and 776 g/t Ag, with metallurgical recovery of 29% for Pb, at cash and AISC of USD $0.60 and USD $0.83 per Lb Pb respectively. Altaley reported gross revenues of CAD $98.4M, mine operating profit of CAD $34.25M, income for the period of CAD $36.26M, and cash of CAD $3.04M.
  • Coeur Mining Inc., reported Q1, 2022 production and financial results from its Palmarejo mine in Chihuahua. The company milled 565,211 tonnes of 1.74 g/t Au and 120 g/t Ag with metallurgical recoveries of 90.6% and 83% respectively to produce 28.9K Oz Au and 1.8M Oz Ag. It sold 28.2K Oz Au and 1.79M Oz Ag during the Q1, 2022 period. Coeur reported metal sales of USD $83.1M; cost applicable to sales of USD $730 and USD $12.43 per Oz Au and Oz Ag respectively; cash flow from operating activities of USD $34.3M; sustaining capital expenditures of USD $13.6M; and free cash flow of USD $20.7M. The company announced that the full year 2022 production is expected to be 100K-110K Oz Au and 6M-7M Oz Ag, and the cost applicable to sales is expected to be USD $750-850 per Oz Au and USD $13.50-14.50 per Oz Ag.
  • Santacruz Silver Mining Ltd., reported Q4 and full year 2021 consolidated production and financial results from their Mexican operation mines (Zimapan, Hidalgo and Rosario San Luis Potosi). In Q4,2021, the company milled 192,901 tonnes to produce 318.4K Oz Ag, 2.27M Lb Pb, 7.7M Lb Zn, and 1.1M Lb Cu (or 842K Oz AgEq with an average grade of 184 g/t AgEq). Santacruz reported for this period revenues of USD $13.8M, gross profit of USD $621K, a net loss of USD $10.45M and an adjusted EBIDTA loss of USD $4,47M. In the full year 2021, it milled 730,412 tonnes to produce 1.29M Oz Ag, 132Oz Au, 8.4M Lb Pb, 28M Lb Zn, and 4.07M Lb Cu (or 3.2M Oz Ag with an average grade of 185 g/t AgEq). The company reported for the full year 2021 revenues of USD $53.3M, gross profit of USD $10.3M, a net loss of USD $11.56M, and an adjusted EBIDTA loss of USD $713K.

ON FINANCING

  • No relevant news.

ON RESOURCES AND DEVELOPMENT

  • Capitan Mining Inc., released results from 5 RC holes collared at its Jesus Maria Silver Zone at the Cruz de Plata project (former Peñoles project) in Durango. Drilling highlights include hole 21-JMRC-10 (at the Upper Zone) with 291 g/t Ag, 0.15 g/t Au, 0.08% Pb, and 0.08% Zn (332 g/t AgEq) over 16.8m, including 478 g/t Ag, 0.56 g/t Au, 0.3% Pb, and 0.2% Zn (539 g/t AgEq) over 9.1m, including 2,217 g/t Ag, 1.77 g/t Au, 1.1% Pb, and 0.4% Zn (2,406 g/t AgEq) over 1.5m; plus (at the Lower Zone) 71 g/t Ag, 0.4 g/t Au, 0.8% Pb, and 1.6% Zn (186 g/t AgEq) over 13.7m, including 114 g/t Ag, 0.67 g/t Au, 1.3% Pb, and 2.7% Zn (309 g/t AgEq) over 7.6m; hole 21-JMRC-06 (at the Upper Zone) with 100 g/t Ag, 0.12 g/t Au, 0.2% Pb, and 0.8% Zn (146 g/t AgEq) over 13.7m, including 152 g/t Ag, 0.17 g/t Au, 0.5% Pb, and 2.4% Zn (271 g/t AgEq) over 3m, including 154 g/t Ag, 0.17 g/t Au, 0.6% Pb, and 3.6% Zn (319 g/t AgEq), plus (at the Lower Zone) with 145 g/t Ag, 0.14 g/t Au, 0.3% Pb, 0.6% Zn (189 g/t AgEq) over 4.6m, including 380 g/t Ag, 0.28 g/t Au, 0.5% Pb, and 0.8% Zn (448 g/t AgEq) over 1.5m; and hole 21-JMRC-08 with 44 g/t Ag, 0.36 g/t Au, 0.9% Pb, and 1.3% Zn (149 g/t AgEq) over 7.6m, including 62 g/t Ag, 0.48 g/t Au, 1.4% Pb, and 2.1% Zn (218 g/t AgEq) over 4.6m, and including 92 g/t Ag, 0.05 g/t Au, 2.9% Pb, and 4.5% Zn (350 g/t AgEq) over 1.5m.
  • Zacatecas Silver Corp., received permits for 30 drill pads at El Cristo Vein System within its Zacatecas property to drill test multiple veins within a zone of dilation that is almost 4 km long and up to 600m wide.  The cumulative strike length of all veins at El Cristo is at least 12km long. A total of 2,500m of diamond drilling has been designed in this initial phase of drilling at El Cristo Vein System.
  • Sonoro Gold Corp., filed an Environmental Impact Statement or Manifestación de Impacto Ambiental (MIA) for its Cerro Caliche property in Sonora. “Under Mexican law, mining construction and operation activities require an approved MIA, as well as a Change of Land Use permit, or Autorización en Cambio de Uso de Suelo (“ETJ”), from the Mexican federal permitting authority, Secretaría de Medio Ambiente y Recursos Naturales (“SEMARNAT”). The company is currently completing the required documentation for the Change of Land Use application and anticipates filing with SEMARNAT in the near future.
  • Orex Minerals Inc. – Pan American Silver Corp JV received a permit to drill its Sandra project in Durango. Phase-I of this new drilling program will consist of approximately 2,500 to 3,000m. Orex conducted a geological mapping and litho geochemical sampling program over the combined 6,970 hectares of the project, where multiple drill target areas have been identified.
  • Southern Silver Exploration Corp., reported drilling results from the North Felsite and El Sol targets on its Cerro Las Minitas project in Durango. Drilling highlights include hole 21CLM-185 with 185 g/t Ag, 0.6 g/t Au, 0.1% Cu, 3.1% Pb, and 0.6% Zn (358 g/t AgEq or 9.1% ZnEq) over a true width (TW) of 0.7m at the North Felsite HW zone, plus 101 g/t Ag, 0.3 g/t Au, 0.8% Cu, 2.4% Pb, and 3.3% Zn (1,321 g/t AgEq or 33.5% ZnEq) over a TW of 1.8m, including 1,785 g/t Ag, 0.5 g/t Au, 1.4% Cu, 3.1% Pb, and 5.9% Zn (2,309 g/t AgEq or 56.6% ZnEq) over a TW of 1m at the North Felsite skarn area; hole 22CLM-184 with 7 g/t Ag, 1.1 g/t Au, 0% Cu, 0.1% Pb, and 0.2% Zn (112 g/t AgEq or 2.8% ZnEq) over a TW of 11.7m at the North Felsite HW zone, including 19 g/t Ag, 5.6 g/t Au, 0% Cu, 0.3% Pb, and 0.1% Zn (495 g/t AgEq or 12.5% ZnEq) over a TW of 1m, plus 121 g/t Ag, 0.2 g/t Au, 0.1% Cu, 1.9% Pb, and 6.5% Zn (460 g/t AgEq or 11.7% ZnEq) over a TW of 0.3m at North Felsite Skarn, plus 117 g/t Ag, 0.1 g/t Au, 0.1% Cu, 1.1% Pb, and 1% Zn (213 g/t AgEq or 5.4% ZnEq) over a TW of 6m, including 301 g/t Ag, 0.2 g/t Au, 0.5% Cu, 1.1% Pb, and 10.7% Zn (830 g/t AgEq or 21% ZnEq) over a TW of 0.3m, plus 302 g/t Ag, 0.2 g/t Au, 0.4% Cu, 2.9% Pb, and 0.7% Zn (485 g/t AgEq or 12.3% ZnEq) over a TW of 0.8m. “The North Felsite target is located on the eastern side of the Cerro Las Minitas, approximately 400m to the northwest of the La Bocona and Mina Piña shafts, in an area that was not included in the most recent NI43-101 Mineral Resource update on the property. New drilling tested the continuity of mineralization in both the main Ag-Pb-Zn Skarn as well as strongly Au-enriched hanging wall zone.
  • Silver Dollar Resources Inc., released the remaining assay results from the phase 1 drilling program completed on the underexplored Noria portion at its la Joya project in Durango. This phase of drilling consisted of 11 core holes totaling 2,424m. Drilling highlights include hole NOR-22-008 with 41 g/t Ag, 0.11 g/t Au, 0.05% Cu, 0.2% Pb, and 0.6% Zn (90 g/t AgEq) over 125.3m, including 137 g/t Ag, 0.23 g/t Au, 0.14% Cu, 0.4% Pb, and 1.7% Zn (268 g/t AgEq) over 10.47m; and hole NOR-22-009 with 3 g/t Ag, 0.66 g/t Au, 0.03% Cu, 0% Pb, and 0.03% Zn (60 g/t AgEq) over 58.84m. “Phase II drilling is now in progress and targeting the wide intervals of mineralization intersected in the new Phase I discoveries”.
  • Sierra Madre Gold and Silver Ltd., reported results of the last four holes collared at its Tepic project in Nayarit. Drilling highlights include hole TDH014 with 322 g/t Ag and 0.96 g/t Au (424 g/t AgEq) over 6.35m, including 544 g/t Ag and 1.5 g/t Au (656 g/t AgEq) over 3.85m, plus 332 g/t Ag and 1.85 g/t Au (470 g/t AgEq) over 6.05m, including 786 g/t Ag and 3.78 g/t Au (1,070 g/t AgEq) over 2.3m. Holes were designed to test areas adjacent to and outside of the areas that were volumetrically included in historic resource estimations. “The Tepic drill holes are being incorporated into the project’s 3-D database and model to plan the continuation of the Phase 2 drilling at Tepic. Drill pads have already been constructed on the Taunas targets to drill the first test holes within the newly discovered area on the eastern portion of the project”.
  •  Golden Tag Resources Ltd., announced results from 2 holes drilled at its San Diego project in Durango. Key highlights include hole 22-65A (Rata Zone) with 0.02 g/t Au, 1,350 g/t Ag, 1.4% Pb, 3% Zn, and 0.35% Cu (1,556 g/t AgEq) over 0.6m, plus 0.03 g/t Au, 981 g/t Ag, 2.4% Pb, 2.5% Zn, and 0.35% Cu (1,194 g/t AgEq) over 0.65m, plus 0.11 g/t Au, 210 g/t Ag, 0.6% Pb, 1.1% Zn, and 0.05% Cu (288 g/t AgEq) over 1.67m, and plus (at Cata Zone) with 0.12 g/t Au, 197 g/t Ag, 1.2% Pb, 0.7% Zn, and 0.06% Cu (280 g/t AgEq) over 0.85m; and hole 22-65B (Rata Zone) with 0.08 g/t Au, 286 g/t Ag, 0.2% Pb, 0.3% Zn, and 0.04% Cu (312 g/t AgEq) over 1.20m, plus (at Cata Zone) with 0.27 g/t Au, 103 g/t Ag, 0.6% Pb, 0.6% Zn, and 0.05% Cu (174 g/t AgEq) over 16.48m, including 0.09 g/t Au, 108 g/t Ag, 0.4% Pb, 0.7% Zn, and 0.05% Cu (163 g/t AgEq) over 2.20m, plus 0.12 g/t Au, 460 g/t Ag, 3% Pb, 2.7% Zn, and 0.19% Cu (690 g/t AgEq) over 2.50m, plus (at CS Play Zone) with 0.11 g/t Au, 135 g/t Ag, 2.9% Pb, 3% Zn, and 0.09% Cu (363 g/t AgEq) over 4.27m, plus (at Fernandez Zone) with 0.05 g/t Au, 35 g/t Ag, 0.4% Pb, 0.8% Zn, and 0.11% Cu (93 g/t AgEq) over 395.1m, including 0.03 g/t Au, 37 g/t Ag, 0.3% Pb, 1.1% Zn, and 0.14% Cu (109 g/t AgEq) over 185.90m. “Combining the results from hole 65B with the results from the previously reported hole 21-58, we can now anticipate that the potential extension of the Fernandez Zone could measure approximately 140 m x 70 m in the horizontal plane and 530 m in the vertical plane.  There are no drill holes to the west of hole 22-65B and thus the Fernandez Zone remains open to the west.” 
  • Guanajuato Silver Company Ltd., reported drill results from its ongoing exploration programs at its El Cubo mine and El Pinguico projects in Guanajuato. Key highlights include hole VP022-002 with 12.90 g/t Au and 1,956 g/t Ag (2,988 g/t AgEq) over a true width (TW) of 0.35m (Arroyo structure), plus 0.21 g/t Au and 31 g/t Ag (47 g/t AgEq) over a TW of 13.55m (Villalpando structure), including 0.76 g/t Au and 115 g/t Ag (176 g/t AgEq) over a TW of 1.15m, plus 0.44 g/t Au and 92 g/t Ag (127 g/t AgEq) over a TW of 0.39m (Villalpando FW structure); hole SC22-001 with 7.56 g/t Au and 42 g/t Ag (647 g/t AgEq) over a TW of 0.30m (680 Vein); hole SC22-002 with 4.49 g/t Au and 276 g/t Ag (636 g/t AgEq) over a TW of 0.13m (Tuberos Vein), plus 2.60 g/t Au and 194 g/t Ag (402 g/t AgEq) over a TW of 0.30m (Poniente Vein); and hole P21-22 with 1.04 g/t Au and 130 g/t Ag (203 g/t AgEq) over a TW of 1.56m (Arroyo structure), including 2.11 g/t Au and 227 g/t Ag (396 g/t AgEq) over a TW of 0.60m, plus 1.15 g/t Au and 193 g/t Ag (285 g/t AgEq) over a TW of 0.24m (Pinguico Vein). “These results serve to build confidence in our understanding of geological controls of high-grade mineralization within the various veins and different zones of our Guanajuato mine holdings. Further, drilling at the El Cubo mine continues to identify mineralization that the Company can quickly build into its near-term mining plans”.
  • Prime Mining Corp., announced new results from 17 holes drilled at Zapote North and Mariposa areas within its Los Reyes project in Sinaloa. “This drilling is targeting the expansion of the Zapote North deposit northwards along the structure and confirming the continuity of mineralization of Mariposa to the south. These holes confirm that gold-silver mineralization extends from Zapote North to Mariposa”. Drilling highlights at Zapote North  include hole 22ZAP-56 with 4.81 g/t Au and 17 g/t Ag over a true width (TW) of 1.7m; hole 22ZAP-66R with 2.42 g/t Au and 24 g/t Ag over a TW of 9.70m, including 4.72 g/t Au and 36 g/t Ag over a TW of 4.2m; hole 22ZAP-67R with 3.83 g/t Au and 14 g/t Ag over a TW of 1.4m; hole 22ZAP-59 with 1.4 g/t Au and 14 g/t Ag over a TW of 8.2m, including 5.55 g/t Au and 22 g/t Ag over a TW of 1.4m; hole 22ZAP-52R with 1.07 g/t Au and 20 g/t Ag over a TW of 19.9m, including  2.62 g/t Au and 28 g/t Ag over a TW of 2.3m, including 3.32 g/t Au and 31 g/t Ag over a TW of 2.3m, plus 0.77 g/t Au and 27 g/t Ag over a TW of 8.2m; hole 22ZAP-68R with 0.68 g/t Au and 13 g/t Ag over a TW of 8.2m, including 2.19 g/t Au and 11 g/t Ag over a TW of 1.2m, plus 0.39 g/t Au and 11 g/t Ag over a TW of 8.2m; and hole 22ZAP-69R with 0.47 g/t Au and 10 g/t Ag over a TW of 6.6m, plus 1.42 g/t Au and 28 g/t Ag over a TW of 5m, including 2.42 g/t Au and 44  g/t Ag over a TW of 2.5m. Drilling highlights at Mariposa include hole 22MA-08 with 1.1 g/t Au and 11 g/t Ag over a TW of 8.3m, including 3.38 g/t Au and 23 g/t Ag over a TW of 0.9m, plus 0.99 g/t Au and 9 g/t Ag over a TW of 5.4m, including 2.05 g/t Au and 11 g/t Ag over a TW of 1.1m, plus 0.69 g/t Au and 9 g/t Ag over a TW of 4.90m; and hole 22MA-09 with 1.55 g/t Au and 15 g/t Ag over a TW of 2.9m, including 5.35 g/t Au and 29 g/t Ag over a TW of 0.60m. “To date for Phase 1 and 2 combined, Prime has drilled 255 holes totalling 64,070 metres (122 in Phase 1 for 25,650 m and 133 holes so far in Phase 2 for 38,420 m)”.

ON DEALS AND CORPORATE ISSUES

  • Golden Minerals Company announced the appointment of its COO, effective May 9, 2022 (Rodeo project, Durango).
  • Vizsla Silver Corp., announced the appointments of its COO and VP of Exploration (Panuco project, Sinaloa).
  • Orogen Royalties Inc. and the Riverside Resources Inc-BHP Group JV signed an option agreement for the Llano de Nogal Copper-Gold porphyry project in Sonora. Riverside can earn a 100% interest by making cash payments of USD $2.48M and USD $5M in cumulative exploration expenditures (CEE) subject to the following schedule: USD $30K (closing of transaction); USD $50K (1st anniversary) and  USD $500K in CEE; USD $50K (2nd anniversary) and USD $1.3M in CEE; USD $100K (3rd anniversary) and $USD $2M (CEE); USD $200K (4th anniversary) and USD $3M (CEE); USD $300K (5th anniversary) and USD $4M (CEE); and USD $1.75M (6th anniversary) and USD $5M (CEE). “During the option period, Orogen and Riverside will jointly retain the right to exercise and retain any Net Smelter Return (NSR) royalty buydown rights with respect to the Suanse claims (0.5% NSR royalty for CAD $1M) and the Coyotes claims (1.5% NSR royalty for USD $1.5M). Once Riverside has exercised its option on Llano de Nogal, Riverside will grant to Orogen a 1% Production Royalty, of which 0.5% can be purchased for USD $10M within 10 years of the exercise date”.

ON SOCIAL RESPONSIBILITY

  • Esperanza Silver de México obtained the support of the Tetlama community to the extent of accompanying the request for federal environmental permits for its operation for the Esperanza project in Morelos. The company determined to promote the project from the beginning hand in hand with the inhabitants since it is based on lands that belong to the community, and showing full respect for their human rights. Esperanza Silver will be delivering the Environmental Impact Statement (MIA) report and the study to propose the change of land use in forest land to the Secretary of the Environment and Natural Resources of the federal government (SEMARNAT) by the end of this year. Currently, the Esperanza Project is in the evaluation stage of the technical studies carried out during 2021 in terms of water and geotechnics. This year will be dedicated to the design of the technical project that will allow establishing the model of the mine’s industrial plant. At this point, both the company and the community will submit the request for an Environmental Manifesto to SEMARNAT, which could occur in mid-2023.
  • Alamos Gold Inc., has generated 2,200 new jobs in the last two years, 700 of them for people hired directly and 1,500 more indirectly for the construction of its La Yaqui Grande mine in Sonora. La Yaqui Grande mine, is in its final stage of construction and will start commercial production during Q3, 2022. The Yaqui Grande mine is already being a development opportunity for communities in the Sierra de Sonora in the municipalities of Sahuaripa, Yécora and Arivechi, among others.

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, phyllic alteration in a porphyry copper prospect in Michoacán Mexico.  Photo by Miguel A Heredia.

The Mining and Exploration News in Mexico: Highlights on the Fourth Week of January, 2022. 

Quartz breccia cemented by tourmaline

By Miguel A Heredia

During the 4th week of the year (January 24th to January 30th, 2022), at least 25 press releases were announced by companies working in Mexico, and 6 news published by the media, with ten informing on exploration results, nine reporting resources and developments of their properties, five communicating production results, four discussing social issues, two commenting on Mexican issues, and one disclosing deals and corporate issues.  ON MEXICO ISSUES, Americas Gold hosted an official opening ceremony at its Cosalá operation in Sinaloa. Pablo Méndez Alvídrez, president of the Mining Cluster of Chihuahua stated that this sector is a mainstay of economic development since it represents 4% of the State gross domestic public (GDP). ON EXPLORATION, In Sonora, Silver Spruce announced that it has initiated an environmental report for a drill permit at its Diamante project and reported high grade results from historical sampling, Aztec–Kootenay JV completed first 14 holes totaling 2,810.6m of the current 5,000m, 22-hole Phase 2 RC drill program at the Cervantes property, Ranchero Gold released results from its ongoing drilling program at its Santa Daniela project, Orogen provided an update of the drilling exploration program funded by Hochschild on its Sarape project, and announced the termination of the option agreement by Hochschild, Tarachi Gold provided an overview of the exploration activities carried out in 2021 at its Jabali and San Javier mining concessions, and Colibri announced it has resumed the drilling program at its flagship Evelyn project. In Chihuahua, Golden Minerals released results from 5 holes drilled at its Yoquivo project.  In Durango, Southern Empire started a drill program at its San Pedro project, Silverton announced that it completed a geophysical 3D modeling of airborne electromagnetic data and the commencement of a seismic survey at its Pluton project, and Canasil announced results of three holes drilled at its Nora project. ON MINING, Altaley reported Q4 2021 production and financial results from its Campo Morado mine in Guerrero. Equinox Gold provided 2022 production and cost guidance for its Los Filos mine in Guerrero. Sierra Metals announced Q4 and full year 2021 production results from their Bolivar and Cusi mines in Chihuahua. MAG Silver reported Q4 and full year 2021 production results from its Juanicipio project in Zacatecas. Magna Gold announced Q4 and full year 2021 production results from its San Francisco Mine in Sonora. ON FINANCING, no relevant news. ON RESOURCES AND DEVELOPMENT, Capitan Mining reported results from its RC drilling program as well as from chip sampling on the Jesus Maria Silver deposit at its Peñoles project in Durango. Silver Tiger released results from its ongoing drilling program on the Sooy Vein at its El Tigre project, Sonora. SilverCrest provided an update on the construction of its Las Chispas mine in Sonora. GoGold released high grade results from nine holes collared at Mololoa-Tamara area within its Los Ricos North project in Jalisco. Southern Silver announced a new high grade mineral discovery on the El Sol concession at its Cerro Las Minitas project, Durango. Gatos Silver provided an update on the resource and reserve estimation process following recent reconciliation work at its Cerro Los Gatos, Chihuahua, and provided 2022 production and cost guidance. Vizsla provided a 2021 year end summary of its activities at its flagship Panuco project in Sinaloa. Tarachi Gold made significant progress in developing its Magistral tailing project in Durango towards a production decision. Mithril provided a Q4, 2021 on activities at its Copalquin project, Durango. ON DEALS AND CORPORATE ISSUES, Bear Creek provided an update of the acquisition from Equinox of Mercedes mine, Sonora. ON SOCIAL RESPONSIBILITY, Minera Penmont (Fresnillo plc) carried out in collaboration with the Urban Development and Ecology area of ​​the Caborca ​​City Council, the first Reforestation Day 2022.  Four educational institutions that Grupo México supports in the Mexican Republic have obtained results above the national average in the most recent evaluations carried out by the Ministry of Public Education. Minera Media Luna (Torex Gold) invested over MXP $7M in seven public works in four communities. Minera San Xavier S.A de C.V. informed that, as of January 2022, it has made significant progress in the execution of its biophysical and social Closure Plan, which has been Responsible, Inclusive and Participatory.

ON MEXICO ISSUE

  • Americas Gold and Silver Corporation hosted an official opening ceremony at its Cosalá operation in Sinaloa with the participation of the Mexican Minister of Economy, the Governor of Sinaloa State, The Cosala Major, and the CEO of the company. All of them pointed the importance of the mine to the local community, the Sinaloa State and the country. All three government representatives thanked to the company for its perseverance during the illegal blockade and the commitment of capital to re-open the mine.
  • Pablo Méndez Alvídrez, president of the Mining Cluster of Chihuahua stated that this sector is a mainstay of economic development since it represents 4% of the State gross domestic public and has generated more than 20,000 direct jobs and more than 102,000 indirect jobs, which is a great contribution to the state.

ON EXPLORATION

  • Silver Spruce Resources Inc., announced that it has initiated an environmental report for a drill permit on its Diamante project and reported high grade results from historical sampling. The environmental report will be filed to SEMARNAT once it is completed and is expected within four to six weeks of submission. The company identified historical reports with maps, field sections and assays for 77 previously unreleased samples with precious and base metal values reporting up to 25.69 g/t Au, 1,360 g/t Ag, 18 % Pb, 33 % Zn and 1.47% Cu.
  • Aztec Minerals Corp.-Kootenay Silver Inc. JV completed first 14 holes totaling 2,810.6m of the current 5,000m, 22-hole Phase 2 RC drill program at the Cervantes property in Sonora. Samples have been submitted to the lab for analysis and results are expected to arrive in the next several weeks. Meanwhile, the company will continue the surface sampling and mapping on the property to continue the 2021 Phase 1 surface program.
  • Ranchero Gold Corp. released results from its ongoing drilling program at its Santa Daniela project in Sonora. Hole MA-21-013 intersected 1.11 g/t Au over 13.15m, and hole MA-21-14 intersected 1.18 g/t Au over 21.15m on La Colmena target. The company announced that further sampling was required both above and below the interval sampled in both holes, and results will be released shortly.
  • Orogen Royalties Inc., provided an update of the drilling exploration program funded by Hochschild Mining Plc., on its Sarape project in Sonora. Hochschild funded a 3,163 m drill program with eight holes testing the quartz-carbonate Sarape Vein. All holes intercepted weakly anomalous gold and silver, except hole SAR-21-12 which intersected 3.76 g/t Au and 15 g/t Ag over 2.4m, including 9.5 g/t Au and 29 g/t Ag over 0.7m. Hochschild terminated the option agreement and Orogen is seeking a new exploration partner for the project.
  • Tarachi Gold Corp., provided an overview of the exploration activities carried out in 2021 at its Jabali and San Javier mining concessions. At the Jabali concession, a Phase 2 underground drilling program at the La Dura mine returned the company´s best drill intersections to date in hole JAB-219-009 with 6.91 g/t Au over 63.4m, including 17.42 g/t Au over 9.3m and 17.37 g/t Au over 13.9m; and hole JAB-21-010 with 1.7 g/t Au over 42m, including 8 g/t Au over 3.4m. In addition, the company completed a short RC surface drilling program with hole JAB-21-14 returning 7.26 g/t Au over 12m. At the San Javier concession, a surface diamond drilling program encountered a mineralized breccia system in several holes. Hole SJA-20-005 intersected 11.9 g/t Au over 2m; hole SJA-20-006 encountered 5.39 g/t Au over 5.6m; and hole SJA-21-014 intersected 0.45 g/t Au over 52m, including 4.11 g/t Au over 1.5m.  Tarachi also informed that “plans are underway to conduct field work in 2022 on some of the other concessions in Sonora including La Texana. The goal of the field program will be to identify potential drill targets for later in the year”.
  • Colibri Resource Corporation announced it has resumed the drilling program at its flagship Evelyn project in Sonora. The company will continue with its 10,000m RC drill program of which 3,122m have been completed in 22 holes before pausing for the holiday season on December 18, 2021. “The Company is planning on completing the 10,000 metres of RC drilling on the Evelyn property in two phases. Phase 1 which is now resuming is aimed at evaluating areas of anomalous and higher-grade Au assay results from surface and trench exposures coincident with magnetic gradients and lineaments and with structures identified through geological mapping. Phase 2 drilling will be planned to follow up positive results from Phase 1 as well as test numerous targets including chargeability anomalies derived from the Induced Polarization (“IP”) survey completed in 2021, targets derived from interpretation of the drone-borne magnetic survey completed in 2020, and targets derived from the on-going property wide geological/structural interpretation”.
  • Golden Minerals Company released results from 5 holes drilled of a 21 holes second phase drill program recently completed on the Pertenencia Vein at its Yoquivo project in Chihuahua. Highlights include hole YQ-021-002 with 0.51 g/t Au and 706 g/t Ag over 2.4m, plus 0.16 g/t Au, and 91 g/t Ag over 8.5m, including 0.18 g/t Au and 116 g/t Ag over 2.4m, including 0.67 g/t Au and 309 g/t Ag over 0.4m; hole YQ-021-004 with 4.02 g/t Au and 1,473 g/t Ag over 1.5m, plus 0.33 g/t Au and 110 g/t Ag over 1.6m, including 0.92 g/t Au and 313 g/t Ag over 0.3m, plus 0.49 g/t Au and 158 g/t Ag over 3.5m, including 1.67 g/t Au and 578 g/t Ag over 0.3m, plus 1.03 g/t Au and 267 g/t Ag over 2.4m, including 5.15 g/t Au and 1,320 g/t Ag over 0.4m, plus 0.04 g/t Au and 179 g/t Ag over .5m, including 0.11 g/t Au and 904 g/t Ag over 0.5m. The company is currently awaiting additional assay results that it expects to report in the coming months.
  • Southern Empire Resources Corp., started its first core drilling program at its San Pedro project in Durango. The drilling program will test the West Zone where sampling on a NW linear trending heterolithic breccia up to 300m in length returned Au values between 0.33 g/t Au and 2.2 g/t Au. This breccia is coincident with IP chargeability and resistivity geophysical anomalies. The drilling program will consist of 2,000 in 6 to 9 holes.
  • Silverton Metals Corp., completed a 3D modelling of airborne electromagnetic data (ZTEM) and the commencement of a seismic survey at its Pluton project in Durango. The company announced that the ZTEM processing and 3D modelling was successful in identifying significant anomalies potentially related to mineralization. These are coincident to six targets previously identified. In addition, “to supplement the ZTEM, the company has commenced work on a seismic line survey to better understand the sedimentary units and identify the contact between the overlying clastic rocks and the limestones which have the potential to host manto and chimney Carbonate Replacement Deposits”.
  • Canasil Resources Inc., announced results of three holes drilled on the Candy vein at its Nora project in Durango. Hole NRC-21-13 intersected 2.96 g/t Au, 241 g/t Ag, 0.15% Cu, 0.02% Pb, and 0.2% Zn (489 g/t AgEq) over a true width (TW) of 3.46m, including 5.49 g/t Au, 432 g/t Ag, 0.15% Cu, 0.01% Pb, and 0.2% Zn (876 g/t AgEq) over a TW of 1.69m, including 9.69 g/t Au, 530 g/t Ag, 0.33% Cu, 0.02% Pb, and 0.2% Zn (1,323 g/t AgEq) over a TW of 0.32m, plus 8,83 g/t Au, 706 g/t Ag, 0.17% Cu, 0.02% Pb, and 0.2% Zn (1,411 g/t AgEq) over a TW of  0.55m, and plus 2.12 g/t Au, 199 g/t Ag, 0.01% Pb, and 0.01% Zn (363 g/t AgEq) over a TW of 0.91m; hole NRC-21-14 intersected 2.13 g/t Au, 164 g/t Ag, 0.09% Cu, 0.1% Pb, and 0.1% Zn (340 g/t AgEq) over a TW of 1.43m, including 2.14 g/t Au, 207 g/t Ag, 0.06% Cu, 0.04% Pb, and 0.1% Zn (381 g/t AgEq) over a TW of 0.85m, plus 1.4 g/t Au, 181 g/t Ag, 0.01% Cu, 0.03% Pb, and 0.1% Zn (290 g/t AgEq) over a TW of 0.67m; and hole NCR-21-15 encountered 2.21 g/t Au, 211 g/t Ag, 0.06% Cu, 0.03% Pb, and 0.2% Zn (390 g/t AgEq) over a TW of 1.54m, including 2.34 g/t Au, 213 g/t Ag, 0.02% Cu, 0.03% Pb, and 0.2% Zn (394 g/t AgEq) over a TW of 0.75m, plus 2.73 g/t Au, 84 g/t Ag, 0.04% Pb, and 0.1% Zn (296 g/t AgEq) over a TW of 0.45m.” The Candy vein structure remains open in both directions along strike and to depth for continued drill testing, and the low base metal values in these drill intercepts suggest drilling to date is still in the higher levels of the system”.

ON MINING

  • Altaley Mining Corporation reported Q4 2021 production and financial results from its Campo Morado mine, Guerrero. The company milled 183.1K tonnes of 1 g/t Au, 118 g/t Ag, 1.1% Pb, and 4.3% Zn with metallurgical recoveries of 21%, 47%, 30%, and 71% respectively, to produce 12.2K tonnes of Zn concentrate and 2.7K tonnes of lead concentrate, at cash and AISC of $0.88 and USD $1.06 per Lb Zn respectively. The company reported revenue of CAD $17.07M from Zn concentrate and CAD $2.9M from Pb concentrate for total revenue of CAD $19.98M.
  • Equinox Gold Corp., provided 2022 production and cost guidance for its Los Filos mine in Guerrero. The production for 2022 is estimated at 160K-180K Oz Au at cash of USD $1,400 to 1,475 per Oz Au, with AISC of USD $1,625 to 1,750 per Oz Au. Equinox will invest USD $38M of sustaining capital and USD $62M of non-sustaining capital.
  • Sierra Metals Inc., announced Q4 and full year 2021 production results from their Bolivar and Cusi mines in Chihuahua. At Bolivar mine, during Q4, 2021, the company processed 227, 722 tonnes of 0.55% Cu, 9 g/t Ag and 0.11 g/t Au with metallurgical recoveries of 80.79%, 82.34%, and 78.32% respectively to produce 2.23M Lb Cu, 57K Oz Ag, and 634 Oz Au (2.8M Lb CuEq). For the full year 2021, the company processed 1,349,602 tonnes of 0.72% Cu, 15 g/t Ag, and 0.16 g/t Au with metallurgical recoveries of 79.28%, 81.95%, and 68.88% respectively, to produce 24.5M Lb Cu, 551K Oz Ag, and 4,751 Oz Au (35.8M Lb CuEq). At Cusi mine, during Q4, 2021, Sierra Metals processed 84,804 tonnes of 179 g/t Ag, 0.21 g/t Au and 0.4% Pb with metallurgical recoveries of 85.52%, 47.29%, and 80.69% respectively to produce 417K Oz Ag, 272 Oz Au and 581K Lb Pb (465K Oz AgEq).  For the full year 2021, the company processed 295,771 tonnes of 160 g/t Ag, 0.18 g/t Au and 0.3% Pb with metallurgical recoveries of 82.98%, 45.05%, and 81.78% respectively to produce 1.26M Oz Ag, 762 Oz Au and 1.7M Lb Pb (1.38M Oz AgEq).
  • MAG Silver Corp., reported Q4 and full year 2021 production results from its Juanicipio project in Zacatecas. This project is a JV between Fresnillo plc and MAG Silver and reported that during Q4, 2021, 113,950 tonnes of mineralized material were processed to produce 1.6M Oz Ag and 9,385 Oz Au, of which 44% are attributable to MAG Silver (718K Oz Ag and 1,754 Oz Au). For the full year 2021, 251,907 tonnes were processed to produce 3.2M Oz Ag and 6,577 Oz Au, of which 44% are attributable to MAG Silver (1.4M Oz Ag and 2,894 Oz Au).
  • Magna Gold Corp., announced Q4 and full year 2021 production results from its San Francisco Mine in Sonora. During Q4, the company mined 1,456,000 tonnes of 0.44 g/t Au and processed 1,688,000 tonnes of 0.41 g/t Au, to produce 15.5K Oz Au and 5,712 Oz Ag at a cash cost of USD $1,123 per Oz Au. The company sold 16,305 Oz Au and 6,177 Oz Ag. The company reported that 57K Oz Au were produced in the full year 2021 at a cash cost of USD $1,299 per Oz Au. Magna Gold also provided a 2022 production guidance and estimates to produce 65K-71K Oz Au at a cash cost of USD $1250-USD $1,350 per Oz Au.

ON FINANCING

  • No relevant news.

ON RESOURCES AND DEVELOPMENT

  • Capitan Mining Inc., reported results from its RC drilling program on its Capitan project, as well as from chip sampling on the Jesus Maria Silver deposit at its Peñoles project in Durango. Hole 21-CARC-29 encountered a broad mineralized intersection on Capitan structure of 0.34 g/t Au and 2 g/t Ag (0.34 g/t AuEq) over 195.1m, including 0.35 g/t Au and 1 g/t Ag (0.37 g/t AuEq) over 149.4m, including 0.61 g/t Au and 2 g/t Ag (0.63 g/t AuEq) over 38.1m, including 0.92 g/t Au and 2 g/t Ag (0.95 g/t AuEq) over 100.7m, plus a 3m wide intersection of the Jesus Maria Vein which returned 0.26 g/t Au and 103 g/t Ag, 0.1% Pb, and 0.49% Zn.  The mineralized intersection of Jesus Maria vein is significant as it represents a 350m step out down-dip, and to the south of the previous drill-defined extent of the Jesus Maria Silver Deposit. Capitan Mining also reported results from chip sampling conducted on outcrops north of the Jesus Maria Silver Deposit with values up to 410 g/t Ag, 0.9 g/t Au, 1.7% Pb, and 0.7% Zn over 0.6m. Trenching along the new Gully Fault target, between the Capitan Gold Deposit and the Jesus Maria Silver Deposit, has identified a wide zone of mineralization up to 54m wide with 0.14 g/t Au.
  • Silver Tiger Metals Inc., released results from its ongoing drilling program on the Sooy Vein at its El Tigre project, Sonora. Significant mineral intersections were encountered in hole ET-21-287 with 0.74 g/t Au, 60 g/t Ag, 0.01% Cu, 0.03% Pb, and 0.03% Zn (117 g/t AgEq) over 12.4m, including 5.99 g/t Au, 174 g/t Ag, 0.01% Cu, and 0.06% Pb (625 g/t AgEq) over 1.5m, plus 0.06 g/t Au, 273 g/t Ag, 0.21% Cu, 0.7% Pb, and 1% Zn ( g/t AgEq) over 6.6m, including 0.03 g/t Au, 2,393 g/t Ag, 1.81% Cu, 7.5% Pb, and 10% Zn (3,083 g/t AgEq) over 0.5m; and hole ET-21-263 with 0.09 g/t Au, 247 g/t Ag, 0.12% Cu, 0.6% Pb, and 1% Zn (314 g/t AgEq) over 3.1m, including 0.15 g/t Au, 421 g/t Ag, 0.18% Cu, 0.7% Pb, and 2.9% Zn (567 g/t AgEq) over 1m, plus 0.21 g/t Au, 180 g/t Ag, 0.13% Cu, 0.6% Pb, and 0.6% Zn (242 g/t AgEq) over 22.6m, including 1.05 g/t Au, 702g/t Ag, 0.54% Cu, 1.8% Pb, and 1.9% Zn (940 g/t AgEq) over 3m, including 0.06 g/t Au, 740 g/t Ag, 0.56% Cu, 0.3% Pb, and 0.6% Zn (826 g/t AgEq) over 1.5m.
  • SilverCrest Metals Inc., provided an update on the construction of its Las Chispas mine in Sonora. Construction progress was 86.2% complete. During 2021, the company committed 75.2% ($103.6M) of the $137.7M Feasibility Study (FS) capital cost estimate.  Construction of the power line is expected to be complete in Q2, 2022. The company has completed a total of 17.5km of underground development since 2019. Approximately 1.8km of additional development occurred in 2021, beyond the FS life of mine. As at Dec 31, 2021, SilverCrest has cash and cash equivalents of $176.5M and $30M project remaining available under a $120M project financing facility.
  • GoGold Resources Inc., released high grade results from nine holes collared at Mololoa-Tamara area within its Los Ricos North project in Jalisco. The highest grades were encountered in hole LRGM-21-088 with 2.58 g/t Au and 684 g/t Ag (11.70 g/t AuEq or 877 g/t AgEq) over 14.6m, including 9.73 g/t Au and 2,577 g/t Ag (44.1 g/t AuEq or 3,307 g/t AgEq) over 3.8m; and hole LRGM-21-090, with 3.84 g/t Au and 999 g/t Ag (17.15 g/t AuEq or 1,286 g/t AgEq) over 5.3m, including 23.50 g/t Au and 6,310 g/t Ag (107.63 g/t AuEq or 8,072 g/t AgEq) over 0.6m, plus 0.49 g/t Au and 129 g/t Ag (2.22 g/t AuEq or 106 g/t AgEq) over 5.7m, including 3 g/t Au and 876 g/t Ag (14.68 g/t AuEq or 1,101 g/t AgEq) over 0.7m, plus 0.27 g/t Au and 85 g/t Ag (1.40 g/t AuEq or 105 g/t AgEq) over 2.5m.  
  • Southern Silver Exploration Corp., announced drill results and reported a new high grade mineral discovery on the El Sol concession at its Cerro Las Minitas project, Durango. Hole 21SOL-003 intersected 549 g/t Ag, 0.2 g/t Au, 8.6% Pb, and 3.6% Zn (982 g/t AgEq or 24.9% ZnEq) over 3.5m, including 1,760 g/t Ag, 0.9 g/t Au, 0.1% Cu, 23.6% Pb, and 1.2% Zn (2,622 g/t AgEq or 66.5% ZnEq) over 0.8m, plus 129 g/t Ag, 0.6 g/t Au, 3.9% Pb, and 6.2% Zn (547 g/t AgEq or 13.9% ZnEq) over 0.4m. Drill crews have mobilized back to the El Sol concession to complete an additional three core holes.
  • Gatos Silver Inc., provided an update on the resource and reserve estimation process following recent reconciliation work at its Cerro Los Gatos, Chihuahua, and provided 2022 production and cost guidance. “The company concluded that there were errors in the technical report entitled “Los Gatos Project, Chihuahua, Mexico” with an effective date of July 1, 2020, as well as indications that there is an overestimation in the existing resource model. On a preliminary basis, the company estimates a potential reduction of the metal content of Cero Los Gatos mineral reserve ranging from 30% to 50% of the metal content remaining after depletion. The company is working with independent engineering consultants to better understand the magnitude of the overestimation, including conducting a detailed reconciliation of production to previous models and reserve calculation estimates, as well as creating a new Life of Mine (“LOM”) plan. The Company is working expeditiously to complete this reconciliation”. Los Gatos produced in 2021 over 7.6M Oz Ag, 50 M Lb Zn, 40M Lb Pb and 5K Oz Au. It also provided a 2022 production and cost guidance. It estimates to produce 8.5-9M Oz Ag, 49-54M Lb Zn, -M Lb Pb, and 4-4.5K Oz Au at AISC of USD $16.50-18.50/Oz (co-product basis) and USD $13-15/Oz (by product basis).
  • Vizsla Silver Corp., provided a 2021 year end summary of its activities at its flagship Panuco project in Sinaloa. In 2021, the company drilled 99,783m in 319 holes at Panuco, focused on the western portion of the district at both Napoleon and Tajitos targets.  Now, the company has drilled 127,756 m in 449 holes on the property. The most relevant results are at the Napoleon target where drilling has delineated a 1,920m by 300m resource area defined by 148 holes, suggesting an estimated weighted average true width of 3.36m at an average grade of 421 g/t AgEq. High grade remains open along strike and down dip to the south. Vizsla also contracted  ALS Canada to conduct preliminary metallurgical testing on representative composited material sourced from the Napoleon vein, and has initiated data capture of standard geotechnical parameters on all resource/exploration drilling. Vizsla has contracted SRK Consulting to design and lead the preliminary data collection program, with most of the work being carried out by Vizsla geologists.  “Focus for 2022 is exploration and growth. With +120,000 meter fully funded drill program designed to 1) further expand the Project’s maiden resource base on the western portion of the property and 2) test high priority targets on the central and eastern portions of the district, Vizsla aims to identify new centers of mineralization from which to delineate additional resources while simultaneously investigating accelerated development opportunities”.
  • Tarachi Gold Corp., made significant progress in developing its Magistral tailing project in Durango towards a production decision, including an auger drill program to provide assay data for a resource estimate and bulk material for metallurgical testing, which demonstrated that >80% Au recoveries without the need for re-grinding the feed. The company completed a PEA study, including a resource estimate of 1.26 M tonnes of 1.93 g/t Au with approximately 87% of the resource in the measured category, outlining a potentially high-margin, low capex gold mining scenario. Highlights of the PEA include an average annual production of 16K Oz Au plus Cu concentrate by-product, AISC of $705/OZ net of Ag and Cu credits, and after-tax IRR of 85%.
  • Mithril Resources Ltd., provided a Q4, 2021 on activities at its Copalquin project, Durango. Highlights include the delivery of its high-grade maiden JORC indicated and inferred mineral resource estimate of El Refugio-La Soledad in the Copalquin district in Durango, with 2,416,000 tonnes of 4.8 g/t Au and  141 g/t Ag (6.81 g/t AuEq), for a total of 373K Oz Au and 10.95M Oz Ag (529K Oz Au) contained using a cut-off of 2 g/t Au; commencement of a metallurgical and mining study work for El Refugio resource; expansion of targets for  the district scale Copalquin  for 2022 exploration program; and progress on the acquisition of the Copalquin mining district mining concessions via its purchase option agreement to 25% by completing USD $4M direct expenditure. 

ON DEALS AND CORPORATE ISSUES

  • Bear Creek Mining Corporation provided an update of the acquisition from Equinox Gold Corp., of the Mercedes mine, located in Sonora. TSX has approved the acquisition as well as of for (i) the company´s gold purchase agreement with Sandstorm Gold Ltd. “Sandstorm will provide the company with USD$37.5M and in exchange Bear Creek will sell to Sandstorm 600 ounces of refined gold per month for 42 months (a total of 25,200 ounces) at a price equal to 7.5% of the spot gold price at the time of delivery and thereafter the company will sell to Sandstorm 4.4% of gold produced by Mercedes at a price equal to 25% of the spot price at the time of delivery; and (ii) the private placement by the Company to Sandstorm of a 6%, three-year Convertible Debentures having a principal amount of USD $22.5M. Proceeds from the Gold Purchase Agreement and the Convertible Debentures will be applied to partially fund the purchase price of the acquisition”.

ON SOCIAL RESPONSIBILITY

  • Minera Penmont (Fresnillo plc) carried out in collaboration with the Urban Development and Ecology area of ​​the Caborca ​​City Council, the first Reforestation Day 2022. During the day, 400 regional trees of the Mezquite and Neem species, as well as a hose and accessories for their installation, were delivered to representatives of 13 schools in Pitiquito and Caborca to inform about the importance of reforestation and of having an environmental culture for the benefit of all the inhabitants.
  • Four educational institutions that Grupo México supports in the Mexican Republic have obtained results above the national average in the most recent evaluations carried out by the Ministry of Public Education. In addition, education also focuses on the teaching of English as a second language
  • Minera Media Luna (Torex Gold) invested over MXP $7M in seven public works in four communities. These works in the towns of Atzcala, Real del Limón, La Fundición and Nuevo Balsas are part of the Minera Media Luna program as a Socially Responsible Company, whose objective is to take advantage of the money in infrastructure works that allow social development.
  • Minera San Xavier S.A de C.V. (Cerro San Pedro, San Luis Potosi), informed that, as of January 2022, it has made significant progress in the execution of its biophysical and social Closure Plan, which has been Responsible, Inclusive and Participatory.

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 quartz breccia cemented by tourmaline from a prospect in Chihuahua, Mexico.  Photo by Miguel A Heredia.

The Mining and Exploration News in Mexico: Highlights on the Second Week of January, 2022. 

Secondary copper staining

By Miguel A Heredia

During the 2nd week of the year (January 10th to January 16th, 2022), at least 27 press releases were announced by companies working in Mexico, and 4 news published by the media, with eleven reporting resources and developments of their properties, six communicating production results, six informing on exploration results, four disclosing deals and corporate issues, three commenting on Mexican issues, and one discussing social issues.  ON MEXICO ISSUES, Jaime Gutiérrez Núñez, President of the Mexican Mining Chamber (CAMIMEX) stated that political risk causes a reduction in the mining investment in Mexico. Alfonso Durazo, governor of Sonora State declared that the Mining Fund program will be back in the state after it was frozen for a little more than three years. ON EXPLORATION, In Sonora, Reyna Gold reported surface and trench sampling results from its La Gloria project, Colibri announced it has purchased a RC drilling rig to reduce drilling expenses, and Heliostar informed that its 5,000m drill program at its Cumaro project has recommenced after the Christmas break. In Chihuahua, Mammoth added additional drill contractor to its ongoing drill program at its Tenoriba project. Radius Gold and Riverside provided a review of 2021 and an update of their Mexican properties.  ON MINING, Americas Gold and Silver reported December 2021 production results from its Cosalá operation in Sinaloa. Torex announced production results from its El Limon-Guajes mine in Guerrero for the full year 2021. Endeavour reported Q4 and full year 2021 production results from their Mexican mine operations. Golden Minerals reported Q4 and full year 2021 production results from its Rodeo project, Durango. Equinox announced Q4, 2021 production from their Mexican operations and provided production guidance for the year 2022. Gatos Silver reported Q4 and full year 2021 production results from its Cerro Los Gatos mine, Chihuahua. ON FINANCING, no relevant news. ON RESOURCES AND DEVELOPMENT, Silver Tiger released results from its ongoing drilling program at its El Tigre project, Sonora. Prime announced results from 13 new holes drilled at the Noche Buena deposit within its Los Reyes property in Sinaloa. Avino provided results from its Phase 2 drilling program conducted at its Avino property in Durango. Capitan Mining reported results from six RC holes collared at its Peñoles project in Durango. Excellon released results from its underground drilling program conducted at the Platosa property in Durango.  Fabled released results from its ongoing drilling program at its Santa Maria project, Chihuahua. Zacatecas Silver received permits for 13 new drill pads and applied for permits on additional 27 drill pads at its Panuco deposit in Zacatecas.  Silver Dollar announced that exploration drilling has recommenced at its La Joya project, Durango. Oroco Resource reported results from eight drill holes collared at its Santo Tomas project in Sinaloa. Osisko released drill results on its San Antonio project in Sonora. GoGold release results from 13 drill holes collared at its Los Ricos North project, Jalisco. ON DEALS AND CORPORATE ISSUES, Ranchero Gold announced the appointment of its President effective immediately (Santa Daniela project, Sonora). Starcore announced the appointment of its new President and Director (San Martin mine, Queretaro). Capitan Mining entered into a purchase agreement to acquire a portfolio of royalties including a 2% royalty on the Capitan Gold oxide deposit in Durango. Endeavour entered into a definitive agreement to acquire the Pitarrilla project in Durango State from SSR Mining. ON SOCIAL RESPONSIBILITY, Compañia Minera Cuzcatlán (Fortuna Silver) along with local municipal authorities delivered toys to more than 20,000 girls and boys from Oaxaca.

ON MEXICO ISSUE

  • Jaime Gutiérrez Núñez, President of the Mexican Mining Chamber (CAMIMEX) stated that political risk causes a reduction in the mining investment in Mexico.  The lack of legal certainty and a complex environment for obtaining licenses and concessions are holding back investment in the Mexico’s mining sector, despite the rise in metal prices. Actual spending was USD $4.25B, 15.6% below the original estimates, according to CAMIMEX. The figure is lower than the USD $4.67B in 2019 and is well below the high of USD $8.42B in 2012.  Due to the lack of mining concessions, investment opportunities of USD $25B are lost in the country. Currently, there are 29 applications detained in the Secretary of the Environment and Natural Resources (SEMARNAT) and 34 at the National Water Commission (CONAGUA). With an adequate legal framework and adequate incentives, mining activity could generate 50 thousand additional direct jobs and more than MXP $25B a year in addition to those already paid by mining. “The statements of the President (against mining), not granting mining concessions, denying access to information, making procedures increasingly slow, although the terms are established in the law, and the lack of personnel in the Mining Directorate General  have impeded the advancement of mining projects in the country”.
  • Alfonso Durazo, governor of Sonora State, declared that the Mining Fund program could be back in the state after it was frozen for a little more than three years by the Federal government. If the Mining Fund is back, the injection of resources into the entity in this 2022 will be greater than MXP $1,000M, same that will benefit the mining towns and incidentally will give a good respite to state public finances.

ON EXPLORATION

  • Reyna Gold Corp., reported surface and trench sampling results from its La Gloria project. To date, 1,252 sample results have been received from the Main Zone area where drilling will commence this coming February. A total of 555 samples out of 713 returned greater than 0.1 g/t Au, including 23 with greater than 5 g/t Au at Big Pit area. High grade values were encountered at Big Pit and Pique Viejo areas including values of 93.9 g/t Au, 36.2 g/t Au, 46.1 g/t Au, 24.4 g/t Au, 20.1 g/t Au. Other areas such as Las Quintas, Las Quintas West, San Pedro, and Alamo Muerto returned values of 20.1 g/t Au, 15.9 g/t Au, 13.3 g/t Au, 11.1 g/t Au, 13.6 g/t Au, and 9.3 g/t Au. Reyna Gold has already the drill permits to commence a drilling program at Big Pit and Pique Viejo areas in February, 2022. Sampling and mapping will continue in other target areas of the property.
  • Colibri Resource Corporation announced it has purchased a RC drilling rig and peripheral equipment to reduce drilling expenses and advance its exploration work at their Mexican properties.
  • Heliostar Metals limited informed that its 5,000m drill program at its Cumaro project has recommenced after the Christmas break. Heliostar reported that four holes totalling 428m were completed in December 2021. Results are pending and will be released in late February.
  • Mammoth Resources Corp., added additional drill contractor to its ongoing drill program at its Tenoriba project. The company reported that 4 holes collared at the Central-Masuparia area were completed prior to the Christmas break. Samples were cut and submitted to the lab. Results are pending. Last December, 2021, Mammoth announced the granting of an additional permit to cover an additional 183 drill hole locations, expanding the total number of permitted drill hole locations to 321 over the entire approximately 6-km trend of surface gold-silver mineralization at Tenoriba property, Chihuahua.
  • Radius Gold Inc., provided a review of 2021 and an update of their Mexican properties. At Amalia project. Chihuahua, 45 drill holes totalling 14,402m have been completed of which 10,588m in 31 holes were drilled in the Amalia Vein System and 3,814m in 14 holes were drilled in the California Vein System. Drilling has re-commenced at El Cuervo target with 3,500m of core drilling expected in the coming months. There are still several targets remaining to drill test including Oro Viejo, La Caverna, California SE, El Pozo and Palmillas. At Maricela project, Sonora, the company mapped and sampled the Au-Ag Epithermal Vein system, extending 1.5km long by 300m wide, within which occurs multiple veins, stockworks, and breccias. 576 samples have been collected with highlights including intervals of 4.46 g/t Au and 1,335 g/t Ag over 3m at la Baby Gloria Vein;  1.03 g/t Au and 418 g/t Ag over 63 at Silver Central Vein; and 0.31 g/t Au and 62 g/t Ag over 25.3m at intersecting veins. At Plata Verde project, Chihuahua, Radius completed a geophysical survey. NP/Resistivity sections show significant structural zones extending to depth directly below the known large scale historic silver mines. Two priority targets for drilling have been generated. In addition, the company completed detail underground mapping and sampling of the historic Mina Real y Mina Mojonera. Radius is evaluating options to fund drilling later this year.
  • Riverside Resources inc., provided an outlook on the upcoming 2022 and informed on some of the achievements and milestones in 2021. Riverside plans to advance their exploration projects in Sonora. It plans to advance its La Union project in Sonora, where sampling results have returned up to  84 g/t Au and >1,500 g/t Ag in rock chip samples. On the exploration alliance with BHP, the company is progressing on 3 funded programs with spending of over USD $3M in the first 6 months of 2022, doing exploration on selected and defined projects, finalizing third party acquisitions, and advance work toward drilling. At Cecilia project, Sonora, along with its partner Carlyle, the objective is to complete further drilling which could define a possible mineralized body at depth around the Cerro Magallanes main dome. At Los Cuarentas project in Sonora, the plan is to advance it with further drilling and test the porphyry copper center. It also wants to complete further farm out option deals from the Riverside portfolio such as Suaqui Grande and Suaqui Verde projects in Sonora, among others. Finally, it plans to work with partners to test porphyry copper targets at its Ariel project, Sonora.

ON MINING

  • Americas Gold and Silver Corporation reported that it milled approximately 47K tonnes at a rate of 1,695 tonnes per operating day during, December 2021, with grades of 54 g/t Ag, 4% Zn, and 1.8% Pb to produce 46K Oz Ag, 3.2M Lb Zn, and 1.3M Lb Pb from its Cosalá operation in Sinaloa.
  • Torex Gold Resources inc., announced production results from its El Limon-Guajes mine in Guerrero for Q4 and the full year 2021. The company mined in Q4, 2021, an average of 1,030 tonnes per day from underground and 9,390 tonnes per day from open pit to produce 109,410 Oz Au. Torex mined an average of 1,260 tonnes per day from underground and 13,040 tonnes per day from open pit in the full year 2021 to produce 468,200 Oz Au. The company sold 468,820 Oz Au at an average realized price of USD $1,790/Oz Au, including 109,390 Oz Au at an average realized price of USD $1,795/Oz Au.
  • Endeavour Silver Corp., reported Q4 and full year 2021 production results from their Mexican mine operations. During the period Q4, 2021, the company processed from Guanacevi mine, Durango 108.3K tonnes of 1.21 g/t Au and 417 g/t Ag with metallurgical recoveries of 92.2% and 89.6% respectively to produce 3,885 Oz Au and 1.3M Oz Ag, and from Bolañitos mine, Guanajuato, 105.2K tonnes of 1.83 g/t Au and 48 g/t Ag with metallurgical recoveries of 88.9% and 87% respectively to produce 5,502 Oz Au and 141.2K Oz Ag. Endeavour also reported full year production results from their Mexican mines. It processed 414.3K tonnes from Guanacevi mine, Durango at grades of 1.09 g/t Au and 370 g/t Ag with metallurgical recoveries of 91.7% and 87.9% respectively to produce  13,317 Oz Au and 4.33M Oz Ag; from Bolañitos mine, Guanajuato itprocessed 418.5K tonnes of 2.02 g/t Au and 42 g/t Ag wit metallurgical recoveries of 90.7% and 87% respectively to produce 24,652 Oz Au and 491.4K Oz Ag; and from El Compas mine, Zacatecas it processed  54.5K tonnes of 3.05 g/t Au and 36 g/t Ag with metallurgical recoveries of 80.2% and 72.5% respectively to produce 4,293 Oz Au and 45.8K Oz Ag. Consolidated results for the period Q4, 2021 were 213.5K tonnes of 1.52 g/t Au and 235 g/t Ag with metallurgical recoveries of 90.8% and 89.4% respectively to produce 9,446 Oz Au and 1.44M Oz Ag, while for the full year 2021 were 887.4K tonnes of 1.65 g/t Au and 195 g/t Ag with metallurgical recoveries of 89.8% and 87.6% respectively to produce 42,262 Oz Au and 4.87M Oz Ag.
  • Golden Minerals Company reported Q4 and full year 2021 production results from its Rodeo project, Durango. In Q4, 2021, Golden mined 145,205 tonnes and processed 42,827 tonnes of 4.6 g/t Au and 14 g/t Ag with metallurgical recoveries of 76.5% and 82.6% respectively to produce 4,831 Oz Au and 15,250 Oz Ag (5,028 Oz AuEq). The company sold 5,164 Oz Au and 15,552 Oz Ag (5,366 Oz AuEq) at realized price, before refining and selling costs of USD $1,784 per Oz Au and USD $23.08 per Oz Ag. In the full year 2021, Golden mined 661,102 tonnes and processed 149,411 tonnes of 4.1 g/t Au and 12 g/t Ag with metallurgical recoveries of 74.9% and 89.9% respectively to produce 14,449 Oz Au and 51,058 Oz Ag (15,256 Oz AuEq). The company sold 13,732 Oz Au and 48,970 Oz Ag (14,454 Oz AuEq) at realized price, before refining and selling costs of USD $1,793 per Oz Au and USD $24.83 per Oz Ag.
  • Equinox Gold Corporation announced full year 2021 production from their Mexican operations and provided production guidance for the year 2022. At Los Filos mine, Guerrero, the company produced 144.1K Oz Au and expects to produce 120K-140K Oz Au in the year 2022. At Mercedes mine, Sonora, the company produced 31.8K Oz Au and expects to produce 30K-45K Oz Au in the year 2022.
  • Gatos Silver Inc., reported Q4 and full year 2021 production results from its Cerro Los Gatos mine, Chihuahua. In Q4, 2021 the company milled 241,397 tonnes of 331 g/t Ag, 0.3 g/t Au, 2.2% Pb, and 3.9% Zn with metallurgical recoveries of 90%, 63%, 91%, and 93% respectively, to produce 2.3M Oz Ag, 1,300 Oz Au, 10.2M Lb Pb, and 12.9M Lb Zn. In the full year 2021, Gatos Silver milled 909,586 tonnes of 295 g/t Ag, 0.32% Au, 2.3% Pb, and 3.9% Zn with metallurgical recoveries of 86%, 61%, 86%, and 73% respectively, to produce 7.6M Oz Ag, 5,200 Oz Au, 39.8M Lb Pb, and 49.6M Lb Zn.
  • Oroco Resource Corp., reported results from eight drill holes collared in the North Zone within its Santo Tomas project in Sinaloa. Significant drill intercepts were encountered in hole N001 with 0.18% Cu, 0.012% Mo, 0.02 g/t Au and 1 g/t Ag over 27m, plus 0.39% Cu, 0.01% Mo, 0.045 g/t Au and 2 g/t Ag over 255m, plus 0.17% Cu, 0.003% Mo, 0.008 g/t Au and 1 g/t Ag over 49m; hole N002 with 0.38% Cu, 0.012% Mo, 0.025 g/t Au and 23 g/t Ag over 281.1m; hole N003 with 0.31% Cu, 0.009% Mo, 0.014 g/t Au and 3g/t Ag over 11.8m, plus 0.33% Cu, 0.018% Mo, 0.017 g/t Au, and 1g/t Ag over 17.7m, plus 0.29% Cu, 0.025% Mo, 0.02 g/t Au and 3 g/t Ag over 25.5m, plus 0.5% Cu, 0.008% Mo, 0.026 g/t Au and 3 g/t Ag over 14.3m, plus 0.39% Cu, 0.014% Mo, 0.019 g/t Au and 3 g/t Ag over 207.7m, plus 0.18% Cu, 0.002% Mo, 0.007 g/t Au and 2 g/t Ag over 76.2m, hole N004 with 0.38% Cu, 0.012% Mo, 0.017 g/t Au and 2 g/t Ag over 63.7m; hole N006 with 0.39% Cu, 0.004% Mo, 0.051 g/t Au and 2 g/t Ag over 188.5m, plus 0.17% Cu, 0.005% Mo, 0.011 g/t Au and  1 g/t Ag over 53.7m, hole N007 with 0.32% Cu, 0.005% Mo, 0.029 g/t Au, and 3 g/t Ag over 191.3m, plus 0.32% Cu, 0.012% Mo, 0.018 g/t Au and 3 g/t Ag over 109.9m; and hole N008 with 0.38% Cu, 0.01% Mo, 0.038 g/t Au and 3 g/t Ag over 328.3m. “Drilling confirms that the North Zone is comprised of intensely fractured, potassic- and phyllic-altered andesite volcanics and Laramide-age porphyritic intrusive dikes. Elevated Mo, Au and Ag accompany copper assays along the central axis of the North Zone”.
  • Osisko Gold Royalties Inc., announced that a total of 27,000m were completed on exploration and infill drilling on the Sapuchi, California and Golfo de Oro deposits at its San Antonio project in Sonora. These three deposits comprise 900m of a 3km long Iron Oxide Copper Gold (IOCG) trend that ends at the past producing Luz del Cobre copper deposit. The highlights of the drilling campaign to date include 2.14 g/t Au over 21.65m, and 1.03 g/t Au over 39.9m to extend the known mineralization. Osisko also announced that the historic gold stockpile is being stacked onto a new heap leach pad with production commencing in early 2022 along with an updated resource estimation for the three deposits being drilled.

ON FINANCING

  • No relevant news.

ON RESOURCES AND DEVELOPMENT

  • Silver Tiger Metals Inc., released results from its ongoing drilling program at its El Tigre project, Sonora, including a high grade intercept in a structure located between the Tiger Vein and the Seitz Kelly Vein. Hole ET-21-274 encountered 0.84 g/t Au and  1 g/t Ag (65 g/t AgEq) over 15m, including 1.42 g/t Au and 1 g/t Ag (108 g/t AgEq) over 4.5m, plus 0.4 g/t Au, 8 g/t Ag, 0.02% Cu, 0.02% Pb, and 0.03% Zn (41 g/t AgEq) over 6.3m, including 0.71 g/t Au, 13 g/t Ag, 0.02% Cu, 0.03% Pb, and 0.1% Pb (73 g/t AgEq) over 1.5m on Seitz Kelly Vein; and hole ET-21-278 encountered in a new structure 3.99 g/t Au, 32 g/t Ag, 0.04% Cu, 0.09% Pb, and 0.17% Zn (343 g/t AgEq) over 16.1m, including 12.24 g/t Au, 84 g/t Ag, 0.11% Cu, 0.2% Pb, and 0.3% Zn (1,029 g/t AgEq) over 5.1m, including 102.1 g/t Au, 120 g/t Ag, 0.13% Cu, 0.2% Pb, and 0.4% Zn (7,808 g/t AgEq) over 0.6m, plus 0.01 g/t Au, 78 g/t Ag, 0.07% Cu, 0.06% Pb, and 0.02% Zn (88 g/t AgEq) over 0.9m, plus 0.04 g/t Au, 86 g/t Ag, 0.1% Cu, 0.1% Pb, and 0.2% Zn (108 g/t AgEq) over 1m on Seitz Kelley Vein.
  • Prime Mining Corp., announced results from 13 new holes drilled at the Noche Buena deposit within its Los Reyes property in Sinaloa. Highlights include hole 21NB-22 with 16 g/t Au and 74 g/t Ag over a true width (TW) of 2.7m, plus 0.91 g/t Au and 44 g/t Ag over a TW of 24.3m, including 3.49 g/t Au and 82 g/t Ag over a TW of 0.9m; hole 21NB-23 with 75 g/t Au and 110 g/t Ag over a TW of 3.8m, plus 1.89 g/t Au and 76 g/t Ag over a TW of 19.7m, including 4.83 g/t Au and 250 g/t Ag over a TW of 3m; hole 21NB-21 with 92 g/t Au and 24 g/t Ag over a TW of 12.8m, plus 1.09 g/t Au and 66 g/t Ag over a TW of 4.3m; and hole 21NB-17 with 1.27 g/t Au and 13 g/t Ag over a TW of 12m, including 38 g/t Au and 8 g/t Ag over a TW of 2.2m. These drilling results have extended the size of the Noche Buena deposit. “The Noche Buena portion of the Central Structure has now been tested and mineralization identified along approximately 600 m of its known 1,000 m strike length.  The structure remains open along strike and at depth both to the northwest and the southeast. Phase 2 drilling is planned to test extensions to the northwest towards San Miguel, where there is strong potential to join the two deposits, and to the southeast where the structure has been traced in surface mapping”.
  • Avino Silver & Gold Mines Ltd., provided results from its Phase 2 drilling program conducted at its Avino property in Durango. The company informed that over 15,500m were drilled in 2021 testing several targets including Brecha de Bajo Vein, where the company made the discovery of a new vein splay called Bart Vein which appears to be mineralized. Highlights results from Brecha de Bajo and Bart Veins include hole NBX-21-02 with 0.06 g/t Au, 151 g/t Ag, 0.37% Cu, 0.06% Pb, and 0.2% Zn (211 g/t AgEq) over 1.20m, plus 0.08 g/t Au, 21 g/t Ag, 0.55% Cu, and 0.2% Zn (103 g/t AgEq) over 7.8m, and plus 0.06 g/t Au, 48 g/t Ag, 0.76% Cu, and 00.3% Zn (159 g/t AgEq) over 0.65m; hole NBX-21-03 with 0.14 g/t Au, 84 g/t Ag, 0.32% Cu, and 0.2% Zn (147 g/t AgEq) over 1.5m, plus 0.27 g/t Au, 72 g/t Ag, 0.26% Cu, 0.3% Pb, and 0.1% Zn (141 g/t AgEq) over 15.4m, including 0.3 g/t Au, 380 g/t Ag, 1.19% Cu, 0.4% Pb, and 0.2% Zn (547 g/t AgEq) over 1.05m, plus 0.84 g/t Au, 44 g/t Ag, 0.21% Cu, and 0.2% Pb (151 g/t AgEq) over 32.2m, including 1.58 g/t Au, 120 g/t Ag, 0.11% Cu, and 0.1% Pb (267 g/t AgEq) over 1.95m.
  • Capitan Mining Inc., reported results from six RC holes collared at its Peñoles project in Durango. The most significant drill intercept was encountered in hole CARC 21-48 with 0.39 g/t Au and 3 g/t Ag (0.42 g/t AuEq)  over 35.1m, including 1.08 g/t Au and 2 g/t Ag (1.1 g/t AuEq) over 4.6m, including 0.7 g/t Au and 2 g/t Ag (0.72 g/t AuEq) over 4.6m. This drill result extends mineralization 170m down-dip from hole 21-CARC-25. Capitan Mining informed that assays for 11 drill holes are pending. The drilling program will be resumed in late January.
  • Excellon Resources Inc., released results from its underground drilling program conducted at the Platosa property in Durango. Follow-up drilling on the 817 Zone below Manto 623 defined a zone of high-grade silver mineralization. Highlights include hole EX21UG76 with 4,035 g/t Ag, 25.2% Pb, and 11.8% Zn (5,089 g/t AgEq) over 0.4m, plus 1,430 g/t Ag, 12% Pb, and 21.7% Zn (3,905 g/t AgEq) over 1.8m; hole EX21UG60 with 2,398 g/t Ag, 14.2% Pb, and 33.2% Zn (3,905 g/t AgEq) over 1.8m; hole EX21UG812 with 1,267 g/t Ag, 7.5% Pb, and 19% Zn (2,124 g/t AgEq) over 2.8m; hole EX21UG769 with 4,060 g/t Ag, 29.7% Pb, and 3.3% Zn (4,939 g/t AgEq) over 0.9m; and hole EX21UG770 with 2,956 g/t Ag, 6.1% Pb, and 1.3% Zn (3,158 g/t AgEq) over 1m. The company also informed that underground drilling will continue testing below historical-mined areas for potential vertical zones.
  • Fabled Silver Gold Corp., released results from its ongoing drilling program at its Santa Maria project, Chihuahua. Hole SM20-48 encountered 0.04 g/t Au, 58 g/t Ag, 0.2% Pb, and 0.2% Zn (60 g/t AgEq) over 1.5m, plus 0.4 g/t Au, 90 g/t Ag, 0.2% Pb, and 0.5% Zn (111 g/t AgEq) over 24.5m, including 0.49 g/t Au, 113 g/t Ag, 0.3% Pb, and 0.7% Zn (139 g/t AgEq) over 17.1m, including 0.6 g/t Au, 129 g/t Ag, 0.4% Pb, and 0.8% Zn (160 g/t AgEq) over 7.5m, including 0.83 g/t Au, 210 g/t Ag, 0.6% Pb, and 1.4% Zn (253 g/t AgEq) over 3m, including 1.25 g/t Au, 315 g/t Ag, 0.6% Pb, and 1.2% Zn (379 g/t AgEq) over 1.50m.
  • Zacatecas Silver Corp., received permits for 13 new drill pads and applied for permits on additional 27 drill pads at its Panuco deposit in Zacatecas. The Company is currently drilling shallow angled holes in the northeast of the Panuco North Vein to test the near surface down-dip extension of vein outcrops and shallow historical workings. It also expects to receive soon the approval of an application for permits to drill El Cristo vein system, which was submitted to SEMARNAT in December 2021.
  • Silver Dollar Resources Inc., announced that exploration drilling has recommenced at its La Joya project, Durango. The company completed 5 holes on the Noria portion of the property for a total of 1,134m before the Christmas break with the aim of testing possible structural extensions of known mineralized zones identified in historical drilling. Sample results from these holes will be reported once they are available.
  • GoGold Resources Inc., release results from 13 drill holes collared at Mololoa Area within its Los Ricos North project, Jalisco. Drilling highlights include hole LRGM-21-066 with 1.21 g/t Au and 242g/t Ag (4.44 g/t AuEq or 333 g/t AgEq) over 11.3m, including 5.2 g/t Au and 1,143 g/t Ag (20.44 g/t AuEq or 1,533 g/t AgEq) over 1.4m; hole LRGM-21-068 with 0.6 g/t Au and 155 g/t Ag (2.68 g/t AuEq or 201 g/t AgEq) over 12.9m, including 3.56 g/t Au and 872 g/t Ag (15.19 g/t AuEq or 1,139 g/t AgEq) over 0.7m; hole LRGM-21-077 with 1.51 g/t Au and 376 g/t Ag (6.52 g/t AuEq or 489 g/t AgEq) over 36.3m, including 6.94 g/t Au and 1,683 g/t Ag (29.78 g/t AuEq or 2,204 g/t AgEq) over 6.5m, including 21.8 g/t Au and 5,040 g/t Ag (89 g/t AuEq or 6,675 g/t AgEq) over 1m, plus 5.02 g/t Au and 1,385 g/t Ag (2,349 g/t AuEq or 1,762 g/t AgEq) over 1.6m; and hole LRGM-21-089 with 0.81 g/t Au and 151 g/t Ag (2.82 g/t AuEq or 212 g/t AgEq) over 24.1m, including 2.87 g/t Au and 426 g/t Ag (8.56 g/t AuEq or 641 g/t AgEq) over 4.2m, including 4.18 g/t Au and 748 g/t Ag (14.15 g/t AuEq or 1,061 g/t AgEq). The company is pleased with the drilling results on Mololoa Area and will continue its aggressive resource expansion drilling program at Los Ricos North deposit. GoGold also will commence drilling at the Cabrera zone, which is the newest target for Los Ricos North deposit.

ON DEALS AND CORPORATE ISSUES

  • Ranchero Gold Corp., announced the appointment of its President effective immediately (Santa Daniela project, Sonora).
  • Starcore International Mines Ltd., announced the appointment of its new President and Director. This appointment follows the resignation of Robert Eadie as President of the Company.   Mr. Eadie remains as Chairman, CEO and a director of the Company.  (San Martin mine, Queretaro).
  • Capitan Mining Inc., entered into a purchase agreement to acquire a portfolio of royalties including a 2% royalty on the Capitan Gold oxide deposit in Durango from Exploraciones Altiplano. Total purchase price of royalty portfolio is USD $1M over two years, payable in cash and shares. “Any shares issued to Altiplano are subject to right of first refusal (ROFR) allowing Capitan to market and place shares with investors if Altiplano elects to sell. This transaction with Altiplano in combination with Capitan’s contractual option to retire Riverside Resources 1% royalty for CAD $250K will leave the Peñoles project royalty free and will enhance overall project economics for investors.
  • Endeavour Silver Corp., entered into a definitive agreement to acquire the Pitarrilla project in Durango State from SSR Mining Inc., for total consideration of USD $70M and a 1.25% NSR. The USD $70M will consists of USD $35M in Endeavour shares and a further USD $35M in cash or in Endeavour shares at the election of SSR Mining. The number of Endeavour shares to be issued will be based on a deemed price of USD $4.085 per share.

ON SOCIAL RESPONSIBILITY

  • Compañia Minera Cuzcatlán (Fortuna Silver Mines Inc.), along with local municipal authorities from the Valles Centrales de Oaxaca and Cuenca de Papaloapan Regions delivered toys to more than 20,000 girls and boys from Oaxaca. The delivery of toys is an example of the coordinated work that Compañía Minera Cuzcatlán carries out permanently with different communities, as part of its commitment to generate shared development and well-being in Oaxaca.

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, secondary copper staining on an IOCG project in Sonora, Mexico.  Photo by Miguel A Heredia.

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

Hydrothermal breccia

By Miguel A Heredia

Happy New Year to all of our readers! I want to wish you all the very best in this coming 2022, especially good health, prosperity and a lot of fun!

With deep regret I knew early this week about the sensitive and unexpectedly passing of David Jones at his home in Tucson, Arizona. David was a well-respected geologist who worked for many years in Mexico making many friends. David will be remembered for being responsible of multiple discoveries in Mexico such as Los Filos in the Guerrero Gold Belt, and Switchback vein system at the El Aguila project in Oaxaca among others. “Descansa en paz amigo!”

During the 52nd and last week of the year (December 27th, 2021 to January 2nd, 2022), at least 13 press releases were announced by companies working in Mexico, and 2 news published by the media, with four reporting resources and developments of their properties, three disclosing deals and corporate issues, three informing on exploration results, three announcing financial issues, one commenting on Mexican issues, and one discussing social issues.  ON MEXICO ISSUES, Mexico will lose potential investments if it does not increase its level of certainty in the mining industry, warned Jody Kuzenko, CEO of the Canadian company Torex Gold Resources. ON EXPLORATION, In Sonora, Silver Spruce announced that it is proceeding with the preparation of an Informe Preventivo for trenching and drilling its Jackie property. In Durango, Southern Empire received preliminary results from a geophysical survey conducted at its Pedro Gold project. In Guerrero, Pantera Silver commenced a drilling program at its Nuevo Taxco Silver project.  ON MINING, no relevant news.  ON FINANCING, Altaley executed a loan agreement with Sail Natural for USD $5M (Tahuehueto project, Durango). Prismo completed the first closing of a non-brokered private placement for total gross proceeds of $1M (Palos Verdes project, Sinaloa). SilverCrest completed the third drawdown of USD $30M on its previously announced USD $120M Project Financing Facility (Las Chispas, Sonora). ON RESOURCES AND DEVELOPMENT, Fabled released results from its ongoing drilling program at its Santa Maria project, Chihuahua. Fresnillo and its JV partner Mag Silver provided a commissioning update on its Juanicipio project in Fresnillo, Zacatecas. GoGold provided an outlook and deliverables for 2022 (Los Ricos North and South projects, Jalisco). Silver Tiger provided a review of its 2021 activities at its El Tigre project in Sonora.  ON DEALS AND CORPORATE ISSUES, Gold79 retained Dig Media to provide investor relation services for the company (Taviche project, Oaxaca). Great Panther announced board changes (Topia mine, Durango). Minaurum announced the passing of David Jones. ON SOCIAL RESPONSIBILITY, Compañía Minera Cuzcatlán (Fortuna Silver) reported that its operation does not generate a negative impact on the water resource located in communities surrounding its San Jose mine in Oaxaca.

ON MEXICO ISSUE

  • Mexico will lose potential investments if it does not increase its level of certainty in the mining industry, warned Jody Kuzenko, CEO of the Canadian company Torex Gold Resources. Mexico’s mining industry has slowed because the current administration of President Andrés Manuel López Obrador has suspended the issuance of new mining concessions; likewise, companies in the sector are increasingly forced to deal with crime by hiring private security companies. Recently, the federal government proposed a constitutional reform initiative for the Mexican electricity industry in which it seeks for the Federal Electricity Commission (CFE) to regain a leading role in the sector, establishing that the company will generate at least 54% of consumption national electric. Torex Gold is the third largest gold producing company in Mexico, with 430,480 Oz Au in 2020; its operations are carried out in Guerrero, where Limón-Guajes is the second most important mining unit in the country in terms of gold production. In that same entity, the company plans to invest more than USD $500M to start operations at its Media Luna mining unit in 2024, with a production of 179K Oz Au, 21K tonnes of Cu and 1.5M Oz Ag, although these estimates will be updated with a new feasibility study. Since Torex Gold is growing in Guerrero, it will need more electrical power. “Reliability is required, that the power is not interrupted while you are working; the price must be competitive, and investors are looking for a wide margin in our process of decarbonization and reducing greenhouse gases”.

ON EXPLORATION

  • Silver Spruce Resources Inc., announced that it is proceeding with the preparation of an Informe Preventivo to be filed at the Mexican Government Environmental Authority (SEMARNAT) for conducting trenching and drilling at its Jackie property in Sonora. The environmental permit will include 13 trenches and 36 drill pads. The SEMARNAT permit for the Informe Preventivo is expected within four to six weeks of submission.”
  • Southern Empire Resources Corp., received preliminary high-resolution, airborne magnetic and radiometric geophysical data covering its Pedro Gold Project in Durango. In December 2021, Terraquest Ltd. of Markham, Ontario, collected 393.2 line-kilometers of airborne geophysical data on flight lines that were flown at azimuth 060 / 240 with 50m spacings. This data has been delivered to Condor Consulting, Inc. of Lakewood, Colorado; experts in geophysical processing, analysis and inversion modeling. “The results of our preliminary airborne magnetic data provide some strong clues about the structural setting and underlying ‘plumbing system’ of the HP Breccia gold zone. Together with the regional government magnetics, we see evidence for a deeper intrusive body that could be linked to the hydrothermal fluids and related potential for epithermal vein systems that are the target of Southern Empire’s upcoming drill campaign”. The company has mobilized a diamond drill rig to the Pedro Property and is scheduled to start a 2,000m, nine-hole core drill program in January of 2022.
  • Pantera Silver Corp., commenced a drilling program at its Nuevo Taxco Silver project in Guerrero. The first phase of this maiden exploration drill program will consists of up to 2,000m with holes of approximately 50-150m in depth.

ON MINING

  • No relevant news.

ON FINANCING

  • Altaley Mining Corporation executed a loan agreement with Sail Natural Resources LP for USD $5M. Net proceeds will be used to fund the final costs of construction and working capital at its Tahuehueto project in Durango. The loan agreement is for four years with an interest of 13.5% where Altaley shall make four quarterly payments of interest only on the outstanding amount of the loan commencing on March 10, 2022, and ending on December 10, 2022.
  • Prismo Metals Inc., completed the first closing of a non-brokered private placement for total gross proceeds of $1M (Palos Verdes project, Sinaloa). The company expects to complete a second closing for $1M in the first half of January, 2022. “The Company will use expected $2M gross proceeds from the Units to complete a 4,000m drilling campaign on its Palos Verdes property (estimated at $1M), conduct exploration on its Los Pavitos property, Sonora with a view of identifying drilling targets (estimated at $400K), the costs of the offering (estimated at $125K which includes payment of finder’s fees) and for general working capital”.
  • SilverCrest Metals Inc., completed the third drawdown of USD $30M on its previously announced USD $120M Project Financing Facility with an affiliate of RK Mine Finance. Funds will be used towards the continued construction of the Company’s Las Chispas Project located in Sonora, with a targeted completion in Q2, 2022. 

ON RESOURCES AND DEVELOPMENT

  • Fabled Silver Gold Corp., released results from its ongoing drilling program at its Santa Maria project, Chihuahua. The most significant drill intercept was obtained in hole SM20-45, which encountered a mined-out void zone at the target depth, but before reaching the target depth it intersected the Santa Maria footwall zone with 0.16 g/t Au 34 g/t Ag, 0.01% Pb, and 0.04% Zn (42.5 g/t AgEq) over 6.40m, including 0.23 g/t Au, 38 g/t Ag, 0.01% Pb, and 0.06% Zn (50 g/t AgEq) over 0.60m, and including 0.19 g/t Au, 55 g/t Ag, 0.01% Pb, and 0.04% Zn (68 g/t AgEq) over 1.7m.
  • Fresnillo plc and its JV partner Mag Silver Corp., provided a commissioning update on its Juanicipio project in Fresnillo, Zacatecas. Although the Juanicipio project team delivered the project for plan commissioning on schedule, the “Comisión Federal de Electricidad” (CFE), the state-owned electrical company, notified Fresnillo plc, the Juanicipio Project operator, that approval to complete the tie-in to the national power grid cannot yet be granted and the mill commissioning timeline will therefore be extended by approximately six months. Stoping and mineralized mine development at Juanicipio will continue and will make available any unused plant capacity at its Minera Fresnillo and Minera Saucito operations to process mineralized material produced at Juanicipio, and if possible matching commissioning and ramp up tonnages that were previously expected. The effect on cashflow generation from Juanicipio therefore will also be mitigated while CFE approvals are pending.
  • GoGold Resources Inc., provided an outlook and deliverables for 2022. At Los Ricos North, the company plans to conduct an aggressive drilling and exploration campaign on El Favor East and Gran Cabrera areas to increase the mineral resource estimate at the property. At Los Ricos South, GoGold will initiate a drilling program on the Jamaica structure since this mineralized zone offers the potential for an additional bulk tonnage target in Los Ricos South. The company also plans to initiate a PFS anticipated to be completed prior to the end of 2022.
  • Silver Tiger Metals Inc., provided a review of its 2021 activities at its El Tigre project in Sonora. The company reported wide high grade silver intercepts in quartz veins within a black shale horizon on the Sooy, Benjamin and Seitz Kelly Veins. Highlights include hole ET-20-202 in the Sooy Vein with 382 g/t AgEq over 22.2m, including 668 g/t AgEq over 11.75m; hole ET-21-204 in the Benjamin Vein with 519 g/t AgEq over 14.2m, including 1,010 g/t AgEq over 5.6m; and hole ET-21-264 in the Seitz Kelly Vein with 2,608 g/t AgEq over 17.5m, including 82,873 g/t AgEq over 0.5m. It also completed a $23M bought deal institutional financing, and disclosed 2021 Environmental, Social, & Governance (ESG) strategy roadmap.

ON DEALS AND CORPORATE ISSUES

  • Gold79 Mines Ltd., retained Dig Media Inc. dba Investing News Network, to provide investor relation services for the company. Under the terms of the contract for this advertising and investor awareness campaign, Dig Media will provide various digital media advertising and related services to increase public awareness of the company. (Taviche project, Oaxaca).
  • Great Panther Mining Limited announced the resignation of its Director and Chair of the Board of Directors, and the appointment of one of its independent Directors as the new Chair of the company (Topia mine, Durango).
  • Minaurum Gold Inc., announced the sensitive and unexpectedly passing of David Jones early this week at its home in Tucson, Arizona. “Descansa en paz amigo”.

ON SOCIAL RESPONSIBILITY

  • Compañía Minera Cuzcatlán (Fortuna Silver Mines Inc.) reported that its operation does not generate a negative impact on the water resource located in communities surrounding its San Jose mine in Oaxaca. The company monitors quarterly the water quality in surface and underground bodies. It also stated that since the beginning of its operation, it does not compete for this resource with neighboring communities, nor does it use the water that was monitored for its mining activities. The water samples are required every six months by environmental regulations, but to generate greater certainty and confidence among the population, the company proactively performs them every three months. The foregoing, through the hiring of external and certified laboratories, whose procedures are endorsed by both the National Water Commission (CONAGUA), as well as by the Federal Attorney for Environmental Protection (PROFEPA) and whose results comply with the NOM-OO1 of the Ministry of the Environment and Natural Resources (SEMARNAT).

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 hydrothermal breccia from a low sulphidation epithermal vein system in a project in Durango, Mexico.  Photo by Miguel A Heredia.

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

By Jorge Cirett

During the 51st week of the year (December 20th to December 26th, 2021), at least 16 press releases were announced by companies working in Mexico. To note, three companies posted exploration advances on their properties, one obtained an environmental permit to keep operating, three released financing/shares/stock exchange related news, while five companies posted on project development or resource definition and one more on a property sale. ON MEXICO ISSUES, the environmental permit needed to keep Fortuna Silver’s San José mine in operation was finally granted by SEMARNAT. ON EXPLORATION, In Sonora, Colibri Resources completed a 3,122 m RC drilling campaign at Evelyn; Silver Spruce is preparing to submit the environmental permit for El Mezquite. Southern Empire Resources initiated an air-borne magnetic and radiometric geophysical survey. ON MINING, Fortuna Silver Mines was granted the environmental permit to continue its operations at the San Jose mine in Oaxaca. The company had to sue SEMARNAT because the organism was not granting the permit although complaining with all regulations. In the end, not-public negotiations and technical reviews resulted in the permit being granted. ON FINANCING, Alamos Gold is to repurchase up to 30 M of its public shares. Prime Mining was added to the MVIS Global Junior Miners Index. Sonoro Gold closed its non-brokered placement for $3 M. ON RESOURCES AND DEVELOPMENT, Almaden Minerals updated on its 2022 plans at Ixtaca; The environmental permit is being prepared for re-submittal as well as the human rights impact assessment (HRIA) report; A favorable outcome on a Supreme Court lawsuit is expected for H2 2022. Guanajuato Silver Co. provided drilling results for El Cubo and Pinguico in Guanajuato. Avino Silver & Gold Mines filed the mineral resource estimate for La Preciosa, in Durango. Silver Dollar Resources informed on the drilling of 1,134 m at its La Joya project in Durango. Azucar Minerals defined a large lithocap at a new target zone on its El Cobre project, Veracruz. ON DEALS AND CORPORATE ISSUES, GR Silver Mining sold El Salto and El Salto Sur mining concessions (covering 56,910 ha) to Grupo Minero Venturex, for past taxes and a 0.5% NSR. ON SOCIAL RESPONSIBILITY, SilverCrest Metals, Peña Colorada and Industrias Peñoles informed on social measures for the betterment of communities near its operations.

ON MEXICO ISSUES

  • The Mexican environmental regulator (SEMARNAT) finally approved the environmental permit needed to keep Fortuna Silver’s San José mine (in Oaxaca) in operation. Thousands of workers and inhabitants of communities near the mine to be affected by the impending closure appreciate the outcome.

ON EXPLORATION

  • Colibri Resource Corp. completed 3,122 m of reverse circulation (RC) drilling in 22 holes at its Evelyin project in Sonora. The drill program, geological mapping and outcrop sampling were paused for the holidays.  “The Company will resume Phase I drilling at the El Sahuaro and Cerro Rojo targets, as well as other prioritized targets on the property in January, upon receipt and interpretation drill assay results”.
  • Southern Empire Resources Corp. initiated a high-resolution airborne magnetic and radiometric geophysical surveys at its Pedro project in Durango. The geophysical program comprises 384 line-km in 96 flight lines at 50 m spacing. In addition, a nine-hole 2,000 m drill core program is expected to start in January of 2022 in the 1,750 hectares mineral concession.
  • Silver Spruce Resources Inc. informed it is in the reviewing process for submission of the environmental report (Informe Preventivo) on its El Mezquite project in Sonora. The company intends to carry an additional phase of reverse circulation drilling with up to fourteen holes comprising 1,500 to 2,500 m in the 180 hectares project.

ON MINING

  • Fortuna Silver Mines Inc. informed the Secretaría de Medio Ambiente y Recursos Naturales (SEMERNAT) granted a 12 year extension of the environmental impact authorization (abbreviated as MIA, in Spanish) at the San Jose mine in Oaxaca. SEMERNAT had previously denied the extension application and Fortuna had to appeal the decision. “After continued dialogue and technical evaluation, SEMARNAT confirmed operations at the San Jose Mine are conducted in accordance with all environmental obligations” and granted the extension on the existing MIA.

ON FINANCING

  • Alamos Gold Inc. filed for a normal course issuer bid permitting Alamos to purchase for cancellation up to 30 M class A common shares, representing 10% of the company’s public float of the common shares to date. “The price for any repurchased Common Shares will be the prevailing market price at the time of the purchase. All Common Shares purchased by Alamos will be cancelled“ (Mulatos, Sonora).
  • Prime Mining Corp. has been added to the MVIS Global Junior Miners Index as of December 17, 2021 (Los Reyes, Sinaloa).
  • Sonoro Gold Corp. announced the closing of its previously announced non-brokered placement for aggregate proceeds of $3 M. In total the company paid $47.4 K in finder’s fees and 263.4 K in non-transferable Finder’s warrants.

ON RESOURCES AND DEVELOPMENT

  • Almaden Minerals Ltd. presented its plans for 2022. The company is preparing the resubmittal of the environmental permit for the Ixtaca project in Puebla, documenting well beyond the legal and regulatory framework in Mexico for filing in H1 2022, as well as the human rights impact assessment (HRIA) report. Almaden expects a lawsuit at the Supreme Court of Justice of Mexico being used to dispute the constitutionality of the Mexican mineral title regime to be solved favorably, optimistically in H2 2022. Since the last press release in October 2021, three more drill holes have been completed in the South East Alteration zone target near Ixtaca, and “The geologic observations and complete assay data will be analysed and additional mineral studies will be conducted on the core in order to identify any geochemical or mineral vectors in order to plan follow-up work in this area”.
  • Guanajuato Silver Company Ltd. provided drilling results from the El Cubo and Pinguico in Guanajuato. At the Cebolletas and 1850 Stope true width (TW) highlighted intervals comprise 2.00 m @ 1.10 gpt Au, 85 gpt Ag; 0.45 m @ 4.33 gpt Au, 192 gpt Ag; 3.87 m @ 1.38 gpt Au, 124 gpt Ag; 1.40 m @ 0.37 gpt Au, 99 gpt Ag in drilling by GR Silver and 1.62 m @ 2.85 gpt Au, 179 gpt Ag; 2.60 m @ 1.12 gpt Au, 131 gpt Ag; 1.71 m @ 0.46 gpt Au, 152 gpt Ag in drilling by Endeavour Silver. At El Cubo Villapando highlighted TW intervals comprise 6.35 m @ 0.69 gpt Au, 65 gpt Ag; 1.57 m @ 0.88 gpt Au, 98 gpt Ag. At El Pinguico, highlighted TW intervals comprise 4.05 m @ 0.68 gpt Au, 62 gpt Ag; 1.00 m @ 1.50 gpt Au, 122 gpt Ag; 0.55 m @ 2.11 gpt Au, 505 gpt Ag; 1.65 m @ 2.45 gpt Au, 125 gpt Ag; 7.95 m @ 1.35 gpt Au, 39 gpt Ag; 0.75 m @ 8.81 gpt Au, 208 gpt Ag; 8.10 m @ 1.00 gpt Au, 93 gpt Ag; 0.55 m @ 1.91 gpt Au, 75 gpt Ag.
  • Avino Silver & Gold Mines Ltd. filed the mineral resource estimate report on the La Preciosa project in Durango, which the company is proposing to acquire. The indicated mineral resource estimate comprises 17.4 M tonnes @ 176 gpt Ag, 0.34 gpt Au (202 gpt AgEq), containing 99 M Oz Ag, 189 K Oz Au (113 M Oz AgEq), whereas the inferred mineral resource includes 4.4 M tonnes @ 151 gpt Ag, 0.25 gpt Au (170 gpt AgEq), containing 21 M Oz Ag, 35 K Oz Au (24 M Oz AgEq).
  • Silver Dollar Resources Inc. informed 1,134 m of drilling have been completed in five holes at its La Joya project in Durango. “The initial drilling program is focused on target development on the Noria portion of the La Joya property with an emphasis on testing for possible structural extensions of known mineralized zones”.
  • Azucar Minerals Ltd. defined a large area of lithocap alteration in a newly outlined target at El Cobre project in Veracruz.” The new spectral mineral mapping in this area ….. has further defined a strong alteration signature with clear zoning including a central diaspore-pyrophyllite-shallow alunite/dickite and concentric halos of paragonitic and muscovitic white mica and inner propylitic epidote halo”. A soil sampling program is being completed for spectral and geochemical analysis intending to identify vectors to focus a drill program.

ON DEALS AND CORPORATE ISSUES

  • GR Silver Mining Ltd. announced the sale of El Salto and El Salto Sur non-core concessions, acquired from Mako Mining Corp. on March 2021, to the private Mexican company Grupo Minero Venturex S.A. de C.V.. The company received US$1 K, retaining a 0.5% NSR, and leaving Venturex responsible to pay all outstanding concession fees and related fines (Note by editor.- holding large titled mining concessions in Mexico is very expensive). In June GR Silver applied for the reduction of the surface of the 56,910 ha claims, but still has to receive the approval from the Dirección General de Minas (DGM).

ON SOCIAL RESPONSIBILITY

  • SilverCrest Metals inaugurated the Tetuachi bridge across the Sonora River in Arizpe, Sonora.
  • Peña Colorada donated material and equipment to the Biosfera Sierra de Manantlán.
  • Industrias Peñoles invested seven million pesos in the park Bosque Venustiano Carranza in Torreon, Coahuila.

On the image below: epidote filled fractures with calc-sodic halo and late quartz veinlet in a copper project in the Sonoran Desert. Picture by Jorge Cirett.

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

Quartz vein with massive chalcopyrite

By Miguel A Heredia

During the 48th week of the year (November 29th to December 5th, 2021), at least 24 press releases were announced by companies working in Mexico, and 3 news published by the media, with seven announcing financial issues, five reporting resources and developments of their properties, five disclosing deals and corporate issues, four informing on exploration results, three commenting on Mexican issues, and three communicating production and financial results.  ON MEXICO ISSUES, AMLO reaffirmed this week his foolish and unfortunate policy of not granting more mining concessions in Mexico. President Andrés Manuel López Obrador offered to meet the request of residents of San José del Progreso and collaborators of Compañía Minera Cuzcatlán, who asked him to avoid the closure of the San José mining unit, located in that Oaxacan municipality. The current government has stopped the issuance of mining concessions and investment in Mexico. ON EXPLORATION, In Sonora, Ranchero Gold provided an update of its ongoing drilling program conducted at its Maíz Azul project. In Chihuahua, Mammoth received from SEMARNAT a permit to expand its drilling program at its Tenoriba project. In Sinaloa, Kootenay announced drill results from its Copalito project. In Durango, Silverton signed a surface agreement for its Pluton Silver-Zinc project.  ON MINING, Americas Gold and Silver announced the re-opening of its Cosalá mine operation in Sinaloa. Santacruz reported Q3, 2021 production and financial results from their Zimapan and Rosario mines in Hidalgo and San Luis Potosi respectively. Guanajuato Silver provided a production update on its El Cubo mine, Guanajuato.  ON FINANCING, Guanajuato Silver closed the first tranche of its non-brokered private placement offering of up to 16M units at a price of CAD $0.55 per unit (El Cubo mine, Guanajuato). Fabled renewed its agreement with Agora Internet to provide online advertising, marketing, and branding services and wishes to issue 519,007 common shares in respect of the settlement, and engaged Hybrid Financial to provide marketing services (Santa Maria project, Chihuahua). First Majestic announced that it will issue USD $200M aggregate principal amount of Convertible Senior Notes or USD $230M aggregate principal amount if the over-allotment option is exercised in full (San Dimas mine, Durango). Guanajuato Silver received USD $750K from the sale of 90 tonnes of bulk Ag-Au concentrate from El Cubo mine in Guanajuato, and anticipates receiving a payment of approximately USD $1.3M for the sale of approximately 175 tonnes of additional Ag-Au concentrate on or about December 3, 2021. Orogen announced initial production at the Ermitaño deposit in Sonora where the company holds a 2% net smelter return. VVC announced an arrangement with Stockhouse Publishing to assists VVC with general market outreach and investor awareness (Gloria Copper project, Chihuahua). ON RESOURCES AND DEVELOPMENT, Discovery reported a Preliminary Economic Assessment (PEA) on its Cordero project, Chihuahua. Endeavour released high grade results from its ongoing drilling program at their Guanacevi and Bolañitos mines in Durango and Guanajuato respectively. Silver Tiger reported a wide high grade drill intersection on the Benjamin Vein at its El Tigre project, Sonora. Fabled released results from hole SM0-42 collared at its Santa Maria project, Chihuahua. GR Silver announced the discovery of a gold-silver rich mineralized zone during the initial reconnaissance drilling at Loma Dorada target within its Plomosas project in Sinaloa.    ON DEALS AND CORPORATE ISSUES, Almadex announced the appointment of two members to its Board of Directors and the retirement of one Director after many years of valued service (El Chato project, Puebla). Capstone and Mantos Copper entered into a definitive agreement to combine business to create Capstone Copper (Cozamin mine, Zacatecas). Heliostar announced the appointment of a new member to its Board of Directors (Cumaro project, Sonora). Monumental Minerals announced the appointment of an advisory board to assist the company with the exploration and drill target definition of its Jemi rare earth elements project in Coahuila. ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUE

  • AMLO reaffirmed this week his foolish and unfortunate policy of not granting more mining concessions in Mexico. He declared that mining companies were speculating in the financial market. López Obrador asserted that the existing mining concessions will be respected; however, his government will no longer give more, as many companies “cheated” and have not carried out exploitation tasks.
  • President Andrés Manuel López Obrador offered to meet the request of residents of San José del Progreso and collaborators of Compañía Minera Cuzcatlán, who asked him to avoid the closure of the San José mining unit, located in that Oaxacan municipality. The president was asked to avoid the loss of more than 1,200 direct jobs and around 8,000 indirect ones.
  • The current government has stopped the issuance of mining concessions and investment in Mexico. Parallel to the policy of null concessions, the president has presented a bill that intends to reserve strategic minerals such as lithium only for the State, denying any concession for their exploration, production or commercialization. Both their decisions not to grant a single concession in three years of government “and the promise not to do so in the entire six-year term”and to reserve strategic minerals for the State have been strongly criticized by specialists and representatives of the mining industry, to the point of warning that the future of the country is being“mortgaged.

ON EXPLORATION

  • Ranchero Gold Corp., provided an update of its ongoing drilling program conducted at its Maíz Azul project, located 3.5km east of Alamos Gold´s Mulatos mine in Sonora. To date, eight holes have been drilled totalling 1,245m, which represents 42% of the Phase 1 drill program which plans to test the La Colmena, La Cascada, and X-structure targets. 175 samples have been submitted to lab and results are expected to arrive in Q1, 2022.
  • Mammoth Resources Corp., received from SEMARNAT a permit to expand its drilling program at its Tenoriba project in Chihuahua. SEMARNAT approved the company´s application for up to 182 additional drill sites and covers the entire 6 km Au-Ag mineralization at the Tenoriba project.
  • Kootenay Silver Inc., announced drill results from Agua, 5 Señores, and Chiva Veins within its Copalito project in Sinaloa. Highlights at Agua Vein include hole BDH-20-055 with 2 g/t Au, 125 g/t Ag and 0.9% combined Pb+Zn (276 g/t AgEq) over 23m, including 9.26 g/t Au, 28 g/t Ag, and 0.6% combined Pb+Zn (643 g/t AgEq) over 5m, including 21.1 g/t Au, 29 g/t Ag, and 0.3% combined Pb+Zn (1,409 g/t AgEq) over 0.65m, plus 0.82 g/t Au, 587 g/t Ag, and 1.6% combined Pb+Zn (676 g/t AgEq) over 3m; hole BDH-21-056 with 0.22 g/t Au, 101 g/t Ag, and 0.9% combined Pb+Zn (135 g/t AgEq) over 21m, including 0.28 g/t Au, 163 g/t Ag, and 0.8% combined Pb+Zn (199 g/t AgEq) over 7m, including 0.48 g/t Au, 440 g/t Ag and 0.9% combined Pb+Zn (492 g/t AgEq) over 1.5m; and hole CDH-21-80 with 0.42 g/t Au, 63 g/t Ag, and 4.8% combined Pb+Zn (199 g/t AgEq) over 1.84m, including 0.69 g/t Au, 133 g/t Ag, and 11% combined Pb+Zn (423 g/t AgEq) over 0.43m. Highlights at 5 Señores Vein include hole BDH-20-51 with 2.95 g/t Au, 98 g/t Ag, and 0.3% combined Pb+Zn (290 g/t AgEq) over 1.4m; and hole BDH-20-052 with 0.23 g/t Au, 14 g/t Ag, and 0.6% combined Pb+Zn (34 g/t AgEq) over 3.3m, including 1.28 g/t Au, 61 g/t Ag, and 3.3% combined Pb+Zn (174 g/t AgEq) over 0.48m. Highlight on Chiva Vein include hole BDH-21-057 with 0.06 g/t Au, 106 g/t Ag, and 0.3% combined Pb+Zn (118 g/t AgEq) over 6.33m, including 0.23 g/t Au, 513 g/t Ag, and 0.8% combined Pb+Zn (546 g/t AgEq) over 0.82m; hole BDH-21-058 with 0.07 g/t Au, 41 g/t Ag, and 0.1% combined Pb+Zn (48 g/t AgEq) over 12m, including 0.5 g/t Au, 300 g/t Ag, and 1.4% combined Pb+Zn (1,364 g/t AgEq) over 0.35m; and hole BDH-21-063 with 0.92 g/t Au, 86 g/t Ag, and 5.5% combined Pb+Zn (269 g/t AgEq) over 1.82m, including 4.49 g/t Au, 453 g/t Ag, and 2.7% combined Pb+Zn (1,344 g/t AgEq) over 0.32m.
  • Silverton Metals Corp., signed a surface agreement for three years for its Pluton Silver-Zinc project with the Comisariado Ejidal of Ejido Mapimi in Durango State. The agreement provides access to the land for surface exploration work, including diamond drilling and use of a core storage facility.

ON MINING

  • Americas Gold and Silver Corporation, announced the re-opening of its Cosalá mine operation in Sinaloa. The Los Braceros plant has returned to nameplate production with a steady source of feed from a combination of existing stockpiled ore and new production from the San Rafael mine.
  • Santacruz Silver Mining Ltd., reported Q3, 2021 production and financial results from their Zimapan and Rosario mines in Hidalgo and San Luis Potosi respectively. At Zimapan mine, Hidalgo, the company milled 186,642 tonnes to produce 867.2K Oz AgEq, and sold 829.2K Oz AgEq. Cash costs per ton and per Oz AgEq produced were USD $53.88 and USD $17.72 respectively. AISC was USD $22.81 per Oz Ag Eq. The company reported revenue of USD $14.4M and a gross profit of USD $3.93M. At Rosario mine, San Luis Potosi, the company milled 2,306 tonnes to produce 5,698 Oz AgEq and sold 10,765 Oz AgEq. Cash costs per ton and per Oz AgEq produced were USD $173.04 and USD $42.81 respectively. AISC was USD $22.47 per Oz AgEq produced. The company reported revenue for USD $182K and gross profit of (272K).
  • Guanajuato Silver Company Ltd., provided a production update on its El Cubo mine, Guanajuato. The company has mined since October 15, 2021 450 tonnes of ore per day from El Cubo mine and is processing an average of 1,000 tonnes per day. It expects the plant to operate for 22 to 24 days for an average monthly operating rate of 22,500 tonnes for the next 6 months.

ON FINANCING

  • Guanajuato Silver Company Ltd., closed the first tranche of its non-brokered private placement offering of up to 16M units at a price of CAD $0.55 per unit. The net proceeds from the offering will be used to fund the ongoing exploration, development, and expansion of the Company’s El Cubo mine and mill complex and El Pinguico silver and gold project, and for general corporate and working capital purposes.
  • Fabled Silver Gold Corp., renewed its agreement with Agora Internet Relations to provide online advertising, marketing, and branding services and wishes to issue 519,007 common shares in respect of the settlement. It also engaged Hybrid Financial Ltd., to provide marketing services. Hybrid has been engaged for an initial period of 6 months, starting on December 1, 2021 and will be paid a monthly fee of $22,500 plus payable taxes (Santa Maria project, Chihuahua).
  • First Majestic Silver Corp., announced that it will issue USD $200M aggregate principal amount of Convertible Senior Notes or USD $230M aggregate principal amount if the over-allotment option is exercised in full. The company intends to use approximately USD $164.9M of the net proceeds of the offering to repurchase, in separate privately negotiated transactions, approximately USD $125.2M aggregate principal amount of its outstanding 1.875% convertible senior notes. The company intends to use the remainder of the net proceeds from the offering for general corporate purposes, including strategic opportunities (San Dimas mine, Durango).
  • Guanajuato Silver Company Ltd., received USD $750K from the sale of 90 tonnes of bulk Ag-Au concentrate grading approximately 220 Oz Ag per tonne and 2.2 Oz Au per tonne from El Cubo mine in Guanajuato, and anticipates receiving a payment of approximately USD $1.3M for the sale of approximately 175 tonnes of additional Ag-Au concentrate at similar grades on or about December 3, 2021.
  • Orogen Royalties Inc., announced initial production at the Ermitaño deposit in Sonora where the company holds a 2% net smelter return. The first doré gold-silver pour occurred November 11, 2021 and commercial production is expected in Q1 2022.
  • VVC Exploration Corporation announced an arrangement with Stockhouse Publishing to assists VVC with general market outreach and investor awareness. At the time, the company issued to Stockhouse 157,900 common shares of VVC and a $60K Note to be converted into shares in four tranches over a year. With the approval of TSX Venture Exchange, one quarter of the note ($15K) will now converted, as part of the second tranche, to 136,365 shares at a price of $0.11 per share, being yesterday´s market price discounted by 25%. The next share issuance will occur in three months (Gloria Copper project, Chihuahua).

ON RESOURCES AND DEVELOPMENT

  • Discovery Silver Corp., reported a Preliminary Economic Assessment (PEA) on its Cordero project, Chihuahua. The reports indicates that the ultimate pit contains 719M tonnes consisting of 228M tonnes of mill feed and 491M tonnes of waste for an average strip ratio of 2.2:1 Highlights include a Base Case after-tax NPV 5% of USD $1,160M and IRR of 38% assuming prices of USD $22 / Oz Ag, USD $1,600/ Oz Au, USD 1/Lb Pb, and USD $1.0/ Lb Zn; and a Upside Case after-tax NPV 5% of USD $1,889M and IRR of 55%, assuming prices of USD $27.5/Oz Ag, USD $1,880/Oz Au,  USD $1.1/Lb Pb, and USD $1.45/Lb Zn; 16-year mine life with an average annual production of 26M Oz AgEq at an AISC of USD $12.35 / Oz AgEq; initial development CAPEX of USD $368M post-tax payback of 2 years for Base Case and 1.4 years for Upside Case; 99% of tonnes processed in the PEA mine are in the Measured + Indicated category; and Ag represents > 60% of the net smelter return in the first five years of the mine life and >50% of the net smelter return over the life of mine.
  • Endeavour Silver Corp., released high grade results from its ongoing drilling program at their Guanacevi and Bolañitos mines in Durango and Guanajuato respectively. At Guanacevi mine, highlights include hole UCM-67 with 1.97 g/t Au and 1,254 g/t Ag (1,412 g/t AgEq) over a true width (TW) of 3.22m, including 3.6 g/t Au and 2,690 g/t Ag (2,978 g/t AgEq) over a TW of 0.2m, extending the El Curso orebody along strike; and hole SCSU-11 with 4.36 g/t Au, 1,450 g/t Ag (1,798 g/t AgEq) over a TW of 3.18m, including 7.97 g/t Au and 4,568 g/t Ag (5,206 g/t AgEq) over 0.31m, extending the Santa Cruz South orebody to depth. At Bolañitos mine, Guanajuato, highlights include hole BS-04 with 8.08 g/t Au and 151 g/t Ag (797 g/t AgEq) over a TW of 1.67m, including 89.6 g/t Au and 88 g/t Ag (8,046 g/t AgEq) over a TW of 0.08m on a new discovery, the Tepetateras vein, south of the current workings; and hole BS-03 with 1.26 g/t Au and 241 g/t Ag (342 g/t AgEq) over 0.96m, on the Lulu vein, south of the current workings.
  • Silver Tiger Metals Inc., reported a wide high grade drill intersection on the Benjamin Vein at its El Tigre project in Sonora. Hole ET-21-272 encountered 0.35 g/t Au, 388 g/t Ag, 0.14% Cu, 2.9% Pb, and 6.2% Zn (701 g/t AgEq) over 23.1m, including 0.5 g/t Au, 587 g/t Ag, 0.21% Cu, 4.3% Pb, and 9.2% Zn (1,051 g/t AgEq) over 15.1m, including 0.52 g/t Au, 1,642 g/t Ag, 0.58% Cu, 11.9% Pb, and 25.2% Zn (2,855 g/t AgEq) over 5.1m, including 0.37 g/t Au, 2,877 g/t Ag, 1.05% Cu, 14.6% Pb, and 30.8% Zn (4,375 g/t AgEq) over 2.6m.
  • Fabled Silver Gold Corp., released results from hole SM0-42 collared at its Santa Maria project, Chihuahua. This hole was designed to fill in a drill poor gap just to the west of the current resources. The hole intersected six gold bearing zones. Highlights are 0.49 g/t Au, 117 g/t Ag, 0.05% Pb, 0.1% Zn (143 g/t AgEq) over 3.70m, including 0.91 g/t Au, 211 g/t Ag, 0.1% Pb, 0.1% Zn, and 0.01% Cu (258 g/t AgEq) over 1.20m, plus 0.43 g/t Au, 227 g/t Ag, 0.1% Pb, 0.3% Zn and 0.01% Cu (249 g/t AgEq) over 1.71m.
  • GR Silver Mining Ltd., announced the discovery of a gold-silver rich mineralized zone during the initial reconnaissance drilling at Loma Dorada target within its Plomosas project in Sinaloa. Hole LDSP21-007 encountered 5.23 g/t Au and 166 g/t Ag over 1m. “The Loma Dorada target is currently the subject of reconnaissance drilling, testing a new geological model of NW trending, Au-Ag rich veining – a possible extension 1.2 km along strike from La Colorada”.

ON DEALS AND CORPORATE ISSUES

  • Almadex Minerals Ltd., announced the appointment of two members to its Board of Directors and the retirement of one Director after many years of valued service. The company also granted stock options to officers, employees and directors to purchase an aggregate of 1,075,000 common shares at a price of $0.31 per share which expires on December 5, 2023 (El Chato project, Puebla).
  • Capstone Mining Corp. and Mantos Copper Limited entered into a definitive agreement to combine business to create Capstone Copper Corp., a premier copper producer with transformational near-term growth. Upon completion of the transaction, former Capstone and Mantos shareholders will collectively own 60.75% and 39.25% of Capstone Copper, respectively, on a fully-diluted share basis. (Cozamin mine, Zacatecas).
  • Heliostar Metals Limited announced the appointment of a new member to its Board of Directors (Cumaro project, Sonora).
  • Monumental Minerals Corp., announced the appointment of an advisory board to assist the company with the exploration and drill target definition of its Jemi rare earth elements project in Coahuila. Monumental also appointed a new Director to its Board. The Company also granted 275,000 incentive stock options to advisors at a price of $0.50 per common share for a period of five years.

ON SOCIAL RESPONSIBILITY

  • No relevant news.

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

On the picture above, a piece of core showing a quartz vein with massive chalcopyrite from an epithermal quartz vein system in a current producing mine in Zacatecas, Mexico.  Photo by Miguel A Heredia.

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

Quartz hydrothermal breccia

By Miguel A Heredia

During the 46th week of the year (November 15th to November 21st, 2021), at least 35 press releases were announced by companies working in Mexico, and 4 news published by the media with twelve reporting resources and developments of their properties, seven announcing financial issues, seven communicating production and financial results, four informing on exploration results, four disclosing deals and corporate issues, four commenting on Mexican issues, and one discussing social issues.  ON MEXICO ISSUES, Fortuna Silver announced that it is trying to avoid the closure of its San Jose silver mine in Oaxaca after the expiration of its environmental permit last month. The company stated that it is fighting for the stability of 1,200 active workers of its San Jose mine. Mexico´s Secretary of the Environment and Natural Resources (SEMARNAT) announced that it will carry out an indigenous consultation to define the future of the San Jose mine in Oaxaca. ON EXPLORATION, In Sonora, Tocvan announced exploration plan for its El Picacho project, and Ridgestone received permit for drill program on the El Cobre target at its Rebeico project.  In Chihuahua, Mammoth Resources reported initial drill results from its diamond drilling program conducted on Carneritos area at its Tenoriba project. In Nayarit, Sierra Madre presented trenching sampling results from its la Tigra project. ON MINING, Argonaut announced Q3, 2021 production and financial results from their Mexican operations. Excellon presented Q3, 2021 production and financial results from its Platosa mine in Durango. Elemental Royalties reported the production of 9,722 Oz Au from its Mercedes mine in Sonora during the period Q3, 2021. Americas Gold and Silver announced that its Cosalá operations are expected to ramp-out to full production of approximately 1,800 tonnes per day next month. SilverCrest reported unaudited financial results for the period Q3, 2021. Starcore announced Q2, 2021 production results from its San Martin mine in Queretaro. DynaResource reported year to date 2021 production and financial results at September 30, 2021 from its San Jose de Gracia mine in Sinaloa.  ON FINANCING, Advance increased its previously announced non-brokered private placement to $475K (Tabasquena property, Zacatecas). Aloro reported that the final CAD 60K + VAT payment of the option agreement for the Los Venados claim, Sonora with Almadex has been made by Alamos Gold. Guanajuato Silver arranged an early payment of USD $2.5M to Endeavour Silver for the acquisition of the El Cubo mine in Guanajuato. Mag Silver signed a binding commitment letter with the Bank of Montreal for a fully underwritten USD $40M revolving credit facility. Aztec closed the final tranche of its oversubscribed CAD $1.6M private placement for total proceeds of CAD $575K (Cervantes project, Sonora). Guanajuato Silver arranged a non-brokered private placement offering for gross proceeds of CAD $8.25M (El Cubo mine, Guanajuato). Silver Wolf announced a non-brokered private placement for gross proceeds of up to CAD $1.5M (Ana Maria project, Durango).  ON RESOURCES AND DEVELOPMENT, Fabled released results from hole SM20-40 collared at its Santa Maria project in Chihuahua. GoGold presented results from the last nine holes collared at its Los Ricos project in Jalisco, prior to upcoming mineral resource estimate. Orex filed a NI 43-101 technical report for a mineral resource estimate on its Coneto project in Durango. Orla provided a construction update of its Camino Rojo project in Zacatecas. Oroco commenced a diamond drilling program on Brasiles Zone at its Santo Tomas project in Sinaloa.  Prime Mining commenced a Phase 2 drilling program on its Los Reyes project in Sinaloa, which will consist of 250 holes for a total of 50,000m. Silver Dollar began an initial 3,000m drilling program at its la Joya property in Durango. SilverCrest provided an update on the construction of its Las Chispas mine in Sonora.  Southern Silver released drill results from its Cerro Las Minitas project, Durango. Capitan Mining presented results from five RC holes collared on El Capitan deposit at its Peñoles project, Durango. Mithril released its maiden JORC mineral resource estimate for the first target area at its Copalquin project, Durango. Silver Tiger presented drill results from ten holes collared on the Protectora and Caleigh veins at its El Tigre project in Sonora. ON DEALS AND CORPORATE ISSUES, Fabled received an approval from the court to spin-out its copper exploration assets in Fabled Copper Corp. Rockland signed an option agreement to acquire 100% interest in the Elektra clay lithium project in Sonora. Starcore reported results from its annual general meeting of shareholders (San Martin mine, Queretaro). Goldgroup announced the appointment of its new CEO (Cerro Prieto mine, Sonora). ON SOCIAL RESPONSIBILITY, Fresnillo plc applies development and scientific research, consolidating the concept of what they call “sustainable mining”.

ON MEXICO ISSUES

  • Fortuna Silver Mines Inc., announced that it is trying to avoid the closure of its San Jose silver mine in Oaxaca after the expiration of its environmental permit last month. Although the San Jose mine has been in operation since 2011, its main environmental authorization expired on October 23, despite the company’s efforts since May to request an extension of the permit. A recent court order allows the mine to continue operating, but only temporarily. Maria Luisa Albores, the Environment Secretariat issued a statement saying it would work to organize a consultation with indigenous communities close to the project as part of the environmental authorization. It did not provide details on the timing of the consultation, nor did it say whether the mine could continue to operate in the meantime. The company stated that it is fighting for the stability of 1,200 active workers of its San Jose mine.
  • Mexico’s Secretary of the Environment and Natural Resources (SEMARNAT) announced that it will carry out an indigenous consultation to define the future of the San Jose mine in Oaxaca. A dozen of Zapotecas communities will decide whether the San José mine, owned by Minera Cuzcatlán, will continue operating in the Valles Centrales region of Oaxaca, through a consultation carried out by the Ministry of SEMARNAT. It should be noted that the San José mine has four environmental impact authorizations in force, however there is another one that expired on October 23, and although the company requested its extension in due time and form, SEMARNAT has not issued a ruling.
  • Fortuna Silver Mines Inc., provided an update on the appeal to the denial of the extension of the environmental impact authorization (EIA) at its San Jose mine, Oaxaca. “The appeal will be brought by Minera Cuzcatlán in the Mexican court. The grounds for the appeal are that Minera Cuzcatlán is in full compliance with all material environmental laws, and therefore Minera Cuzcatlán has the right to an extension of the EIA under applicable law”.

ON EXPLORATION

  • Tocvan Ventures Corp., announced exploration plan for its El Picacho project in Sonora, where five primary targets have been identified to date combining for over 6km of prospective trend. The company plans to carry out surface sampling and detailed target mapping, trenching and channel sampling of priority targets, and drill targeting. The project is fully permitted for 1,995m of trenching, 60 drill holes (up to 15,000m), and 2.2km of access roads.
  • Ridgestone Mining Inc., received permit for drill program on the El Cobre target at its Rebeico project in Sonora. This maiden drill program will consists of 14 RC holes for a total of approximately 2,700m, and will be conducted along the main El Cobre structure, where recent grab and rock-chip sampling of the surface stockpile of mined material from the El Cobre structure returned up to 3.5% Cu, 53 g/t Ag and 0.52 % Mo over widths of up to 5.0m.
  • Mammoth Resources Corp., reported initial drill results from its diamond drilling program conducted on Carneritos area at its Tenoriba project in Chihuahua. Four diamond holes have been completed for a total of 426m. Highlights include hole TEN21-01 with 0.31 g/t Au and 17 g/t Ag (0.53 g/t AuEq) over 37.5m, including 0.47 g/t Au and 75 g/t Ag (1.7 g/t AuEq) over 4.5m; hole TEN21-03 with 0.54 g/t Au and 4 g/t Ag (0.59 g/t AuEq) over 43.5m, including 0.69 g/t Au and 3 g/t Ag (0.73 g/t AuEq) over 6m, including 0.67 g/t Au and 5 g/t Ag (0.73 g/t AuEq) over 4.5m; and hole TEN21-04 with 0.53 g/t Au and 7 g/t Ag (0.63 g/t AuEq) over 19.5m.
  • Sierra Madre Gold and Silver Ltd., presented trenching sampling results from its la Tigra project in Nayarit. Trench LTZ01 returned 1.44 g/t Au and 10 /t Ag (1.58 g/t AuEq) over a length of 8.6m;  trench LTZ02 returned 0.46 g/t Au and 56 g7t Ag over a length of 19.7m; trench LTZ03 returned 1.22 g/t Au and 7 g/t Ag (1.3 g/t AuEq) over a length of 11.6m, including 2.52 g/t Au and 10 g/t Ag (2.7 g/t AuEq) over a length of 4.25m; and trench LTZ04 returned 1.45 g/t Au and 9 g/t Ag (1.57 g/t AuEq) over a length of 12.8m, including 3.22 g/t Au and 35 g/t Ag (3.69 g/t AuEq) over a length of 5.3m.

ON MINING

  • Argonaut Gold Inc., announced Q3, 2021 production and financial results from their Mexican operations. At El Castillo mine, Durango, Argonaut mined 2,143,000 tonnes of 0.28 g/t Au to produce 11,123 Oz Au and 10,448 Oz Ag or 11,246 Gold Equivalents Ounces (GEOs). It sold 10,473 Oz Au and 11,875 Oz Ag (10,612 GEOs) at a cash cost of USD $1,173 per Oz Au sold. At San Agustin Mine, Durango, the company mined 2,598,000 tones of 0.30 g/t Au to produce 16,258 Oz Au and 116,309 Oz Ag (17,626 GEOs). Argonaut sold 17,611 Oz Au and 121,993 Oz Ag at a cash cost of USD $1,011 per Oz Au sold. At La Colorada mine, Sonora, the company mined 1,224,000 tonnes of 0.67 g/t Au to produce 15,360 Oz Au and 37590 Oz Ag (15,802 GEOs). It sold 15,332 Oz Au and 35408 Oz Ag (15,749 GEOs) at a cash cost of USD $696 per Oz Au sold.
  • Excellon Resources Inc., presented Q3, 2021 production and financial results from its Platosa mine in Durango. The company mined 21,592 tonnes and milled 21,302 tonnes of 526 g/t Ag, 4.9% Pb, and 5.4 % Zn with metallurgical recoveries of 90.9%, 81.2%, and 78.3% respectively. Excellon produced 326.7K Oz Ag, 1.87M Lb Pb, and 1.98M Lb Zn (521.2K Oz AgEq) at total and AISC of USD$11.02 and USD$21.52 per Oz Ag payable respectively. The company reported revenues of USD $9.2M; gross profit of USD $1.8M, and cash and marketable securities of USD $5M at September 30, 2021.
  • Elemental Royalties Corp., reported the production of 9,722 Oz Au from its Mercedes mine in Sonora during the period Q3, 2021.
  • Americas Gold and Silver Corporation announced that its Cosalá operations are expected to ramp-out to full production of approximately 1,800 tonnes per day next month. Concentrate shipment have resumed. A return to revenue and cash flow generation is expected later in Q4, 2021.
  • SilverCrest Metals Inc., reported unaudited financial results for the period Q3, 2021. The Company recorded USD $42.1M as development expenditures under mineral property, plant and equipment, for the Las Chispas Project, which primarily consisted of decline construction and underground working of USD $17.2M; drilling costs of USD $9.7M; field and administrative costs of USD $6.3M; and salaries and remuneration of USD $3.3M. The Company also recorded additions, during the nine months ended September 30, 2021, of USD $60M related to the Las Chispas Project as mineral property, plant and equipment for various items which was primarily construction in progress.  At September 30, 2021, SilverCrest had cash and cash equivalents of USD $199M. At September 30, 2021, the Company had value-added taxes (“IVA”) receivable in Mexico of USD $17.9M. The Company has financed its operations to date through the issuance of common shares and debt. The Company currently has no operations from which to derive revenues.
  • Starcore International Mines Ltd., announced Q2, 2021 production results from its San Martin mine in Queretaro. The company milled 56,061 tonnes of 1.56 g/t Au and 23 g/t Ag with metallurgical recoveries of 87.81% and 54.83% respectively, to produce 2,782 Oz AuEq.
  • DynaResource Inc., reported year to date 2021 production and financial results at September 30, 2021 from its San Jose de Gracia mine in Sinaloa. The company mined and milled 66,695 tonnes of 9.48 g/t Au with a metallurgical recovery of 89.45%, to produce 18,141 Oz Au, from which 16,036 Oz Au were sold. The company reported revenue of $25.9M, net operating income of $11.3M, and earnings per share of $0.64.

ON FINANCING

  • Advance Gold Corp., increased its previously announced non-brokered private placement to $475K (Tabasquena project, Zacatecas).
  • Aloro Mining Corp., reported that the final CAD 60K + VAT payment of the option agreement for the Los Venados claim, Sonora with Almadex Minerals Limited has been made by Alamos Gold Inc.  Aloro also reported that by mutual agreement with Alamos, the second year work commitment was reduced from USD $1.5M to USD $750K, while the third year work commitment was increased from USD $3M to USD$3.75M, to total USD $M to earn 70% interest in the Los Venados project.
  • Guanajuato Silver Company Ltd., arranged an early payment of USD $2.5M promissory note to Endeavour Silver Corp., for the acquisition of the El Cubo mine in Guanajuato. In consideration, Endeavour has agreed to reduce the principal amount of the note by USD $25K and settle the Mexican VAT for common shares of the company. It will issue 901,224 common shares to Endeavour at a deemed price of CAD $0.55 per share to settle VAT totalling USD $396K.
  • Mag Silver Corp., signed a binding commitment letter with the Bank of Montreal for a fully underwritten USD $40M revolving credit facility. The facility will be used to develop its Juanicipio project in Zacatecas, as well as for working capital and general corporate purposes (Mag Silver only controls 44% of the project).
  • Aztec Minerals Corp., closed the final tranche of its oversubscribed CAD $1.6M private placement for total proceeds of CAD $575K. Part of the proceeds will be used to conduct exploration work on its Cervantes project in Sonora, as well as for general working capital purposes.
  • Guanajuato Silver Company Ltd., arranged a non-brokered private placement offering of 15M units at a price of CAD $0.55 for gross proceeds of CAD $8.25M. The net proceeds from the offering will be used to fund the ongoing exploration, development, and expansion of the Company’s El Cubo mine and mill complex and El Pinguico silver and gold project, both located near the city of Guanajuato, Mexico; and for general corporate and working capital purposes.
  • Silver Wolf Exploration ltd., announced a non-brokered private placement financing for up to 6M units at a price of CAD $0.25 per unit for aggregate gross proceeds of up to CAD $1.5M. Net proceeds will be used for financing the initial drill program at its Ana Maria project in Durango, and for general working capital purposes.

ON RESOURCES AND DEVELOPMENT

  • Fabled Silver Gold Corp., released results from hole SM20-40 collared at its Santa Maria project in Chihuahua. The drill hole encountered seven gold bearing zones as shown in the figure below:
“Hole SM20-40 was successful and continues to add to the mineral inventory as the down plunge of the gold domain system discovered in holes SM20 – 20, 22 remains open at depth. Hole SM20-41 will further explore the down dip potential of this zone. Further drilling maybe required in this area”.
·         GoGold Resources Inc., presented results from the last nine holes collared at its Los Ricos North project in Jalisco, prior to upcoming mineral resource estimate. The most significant mineralized intervals were encountered in holes LRGF-21-095 collared at El Favor Este with 0.35 g/t Au and 113 g/t Ag (1.85 g/t AuEq or 139 g/t AgEq) over 13.3m, including 3.81 g/t Au and 1,237 g/t Ag (20.3 g/ AuEq or 1,523 g/t AgEq) over 0.7m, and 0.56 g/t Au and 156 g/t Ag (2.65 g/t AuEq or 199 g/t AgEq) over 1.2m; and hole LRGF-21-084 with 0.17 g/t Au and 58 g/t Ag (0.94 g/t AuEq or 70 g/t AgEq) over 66.1m, including 0.37 g/t Au and 111 g/t Ag (1.85 g/t AuEq or 138 g/t AgEq) over 13.5m, including 1.03 g/t Au and 167 g/t Ag (3.26 g/t AuEq and 245 g/t AgEq) over 3m, plus 0.31 g/t Au and 154 g/t Ag (2.36 g/t AuEq or 177 g/t AgEq) over 5.5m.
·         Orex Minerals Inc., filed a NI 43-101 technical report for a mineral resource estimate on its Coneto project in Durango. Orex reported inferred resources for 5,325,000 tonnes of 1.67 g/t Au and 112 g/t Ag (3.15 g/t AuEq) to contain 286K Oz Au and 19.1M Oz Ag (538K Oz AuEq) as at August 30, 2021.
·         Orla Mining Ltd., informed that up to October 2021, the mine construction of its Camino Rojo project in Zacatecas shows a progress of 96% and that it remains on budget.  The company reported capital expenditures of USD $24.3M in Q3, 2021 and totalled USD $106.3M as Sept 30, 2021, out of a total of USD $134.1M. “The main activities completed during the quarter included ramp up of mining activities, mechanical completion of the crushing system, conveying system, reclaim tunnel, overland conveyor, and grasshopper conveyors, commencement of wet commissioning with introduction of ore into the crushing circuit, and completion of the camp facilities. Overliner ore material was placed on the heap leach pad and ore stacking began in early October in preparation for cyanide leaching which is expected to begin in mid-November”.
·         Oroco Resource Corp., commenced a diamond drilling program on Brasiles Zone at its Santo Tomas project in Sinaloa. Brasiles is the northern extension of the mineralization in the Santo Tomas North Zone, and consists of two very broad, sub-parallel exploration targets. The first hole underway will test a NE striking, chargeability-high resistivity low response, while the second hole will test a blind chargeability-high feature located west of and sub-parallel to the Brasiles target.
·         Prime Mining Corp., commenced a Phase 2 drilling program on its Los Reyes project in Sinaloa, which will consist of 250 holes for a total of 50,000m. Goal of the Phase 2 drilling program is to expand resources along the three main corridors of known open-pit mineralization: Guadalupe Structure, Zapote-Tahonitas, and Central Zone Structure. In addition, Prime will test several high potential new target generated in the previous exploration campaign   which are located within approximately 5km radius of the main mineralized corridors at Los Reyes such as Mina 20/21, Mariposa, Las Primas, Fresnillo, El Tule and others on the two parallel El Orito trends.
·         Silver Dollar Resources Inc., began an initial 3,000m drilling program at its la Joya property in Durango.  Objective of the drilling program is to test the possible structural extension of known mineralized zones identified in historical drilling on the Noria portion of the La Joya property.
·         SilverCrest Metals Inc., informed that the construction progress at its Las Chispas mine in Sonora was 54% complete compared to an overall scheduled completion of 48%. Construction continued to progress well in the quarter with the main access road, plant detailed engineering, and concrete work now complete, bridge construction 88% complete, plant construction 49% complete, power line 47% complete, and underground infrastructure ongoing. With underground development ahead of schedule at the end of the H1, 2021, development rates continued to progress well in Q3, 2021 for a total of 15.7 km completed since underground development began in Q1, 2019.
·         Southern Silver Exploration Corp., released drill results from the North Felsite chimney at its Cerro Las Minitas project, Durango. Highlights include hole 21CLM-175 with 599 g/t Ag, 0.08 g/t Au, 0.03% Cu, 16.9% Pb, and 10.2% Zn (1,530 g/t AgEq or 38.8% ZnEq) over a true width (TW) of 1.9m, including 760 g/t Ag,0.07 g/t Au, 0.03% Cu, 23.2% Pb, and 17.4% Zn (2,169 g/t AgEq or 55% ZnEq); and hole 21CLM-172 with 313 g/t Ag, 0.25 g/t Au, 0.07% Cu, 7% Pb, and 1.3% Zn (610 g/t AgEq or 15.5% ZnEq) over a TW of 0.4m, plus 180 g/t Ag, 0.06 g/t Au, 0.36% Cu, 3.7% Pb, and 0.5% Zn (361 g/t AgEq or 9.1% ZnEq) over a TW of 0.5m. Mineralization remains open along strike and at depths below 250m.
·         Capitan Mining Inc., presented results from five RC holes collared on El Capitan deposit at its Peñoles project, Durango. The most significant drill intercept was encountered in hole 21-CARC-40 with 0.30 g/t Au over 15.2m, including 1.44 g/t Au over 1.5m in the hanging wall zone, plus 0.32 g/t Au and 7 g/t Ag (0.40 g/t AuEq) over 76.2m, including 0.59 g/t Au and 8 g/t Ag (0.70 g/t AuEq) over 18.3m, including 1.2 g/t Au and 10 g/t Ag (1.33 g/t AuEq) over 1.5m in the Capitan Main zone.
·         Mithril Resources Ltd., released its maiden JORC mineral resource estimate for the first target area at its Copalquin project, Durango. The company reported for El Refugio-La Soledad target indicated resources for 691,000 tonnes of 5.43 g/t Au and 114 g/t Ag (7.06 g/t AuEq) to contain 121K Oz Au and 2.54M Oz Ag (157K Oz AuEq) and inferred resources for 1,725,000 of 4.55 g/t Au and 152g/t Ag (6.72 g/t AuEq) to contain 252K Oz Au and 8.4M Oz Ag (372K Oz AuEq). Total Indicated + Inferred resources are 2,416,000 tonnes of 4.8 g/t Au and 141 g/t Ag (6.81 g/t AuEq) to contain 373K Oz Au and 10.95M Oz Ag (529K Oz AuEq).
·         Silver Tiger Metals Inc., presented drill results from ten holes collared on the Protectora and Caleigh veins at its El Tigre project in Sonora. The most significant mineralized intervals were encountered in holes ET-20-163 collared on the Protectora Vein with 0.74 g/t Au and 335 g/t Ag (5.21 g/t AuEq or 391 g/t AgEq) over 3.2m, including 3.56 g/t Au and 1,782 g/t Ag (27.32 g/t AuEq or 2,049 g/t AgEq) over 0.5m, plus 0.48 g/t Au and 727 g/t Ag (10.17 g/t AuEq or 763 g/t AgEq) over 1m, including 0.89 g/t Au and 1,374 g/t Ag (19.21 g/t AuEq or 1,441 g/t AgEq) over 0.5m; hole ET-20-164 on the Protectora Vein with 4.59 g/t Au and 370 g/t Ag (9.52 g/t AuEq or 714 g/t AgEq) over 1.2m, including 10.5 g/t Au and 805 g/t Ag (21.23 g/t AuEq or 1,592 g/t AgEq) over 0.5m; hole ET-20-158 on Caleigh Vein with 4.09 g/t Au and 815 g/t Ag (14.96 g/t AuEq or 1,122 g/t AgEq) over 0.7m; and hole ET-20-156 collared on Caleigh Vein with 7.09 g/t Au and 752 g/t Ag (17.12 g/t AuEq or 1,284 g/t AgEq) over 0.3m.

ON DEALS AND CORPORATE ISSUES
·         Fabled Silver Gold Corp., received an approval from the court to spin-out its copper exploration assets in Fabled Copper Corp.
·         Rockland Resources Ltd., signed an option agreement to acquire 100% interest in the Elektra clay lithium project in Sonora. The Elektra project is contiguous to the advanced Sonora Lithium project owned by Bacanora Lithium plc. The company can earn a 100% interest (less NSR) in the Elektra project through cumulative option payments of 10M common shares in the company and USD $1.5M over a 48 month period. A 2% NSR will be granted to the vendors and the company will have an option to purchase 50% of the NSR for USD $1M at any time.
·         Starcore International Mines Ltd., reported results from its annual general meeting of shareholders (San Martin mine, Queretaro).
·         Goldgroup Mining Inc., announced the appointment of its new CEO effectively immediately. The previous interim CEO will continue as the company´s CFO (Cerro Prieto mine, Sonora).

ON SOCIAL RESPONSIBILITY
·         Fresnillo plc informed that it applies development and scientific research, consolidating the concept of what they call “sustainable mining”. The company implemented a “life vest” for monitoring the health of its workers, coupled with the use of artificial intelligence in data analysis systems such as Big Data, biometric readers and new generation extraction.

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, quartz hydrothermal breccia cemented by silica and fine disseminated sulphides in an epithermal quartz vein system in a project in Chihuahua, Mexico.  Photo by Miguel A Heredia.

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

By Jorge Cirett

During the 43rd week of the year (October 25th to October 31st, 2021), at least 34 press releases were announced by companies working in Mexico. To note, six companies posted exploration advances on their properties, six released Q3 reports, one on commencement of mining and one other in red tape issues, there were no financing related news, while ten companies posted on project development or resource definition and one more on a project acquisition. ON MEXICO ISSUES, a leftist senator asked for the Mining Fund to be reinstated for the benefit of communities. The head of the Energy Secretariat confirmed plans to create a lithium State company, and the government’s drive to monopolize the electricity market. Mixed market results for Mexican companies in 2021. ON EXPLORATION, In Sonora, Colibri Resources updated on drilling preparations. In Chihuahua, Reyna Silver has drilled the first skarn intervals in the Guigui project, rising the stakes and probing that pursuing geological models can pay off. Radius Gold released good drill results from the California target in the Amalia project. In Durango, Silverton updated on exploration activities at Pluton. In Sinaloa, Brigadier Gold released trench results from El Placer vein system at its Picachos property. In Nayarit, Sierra Madre Gold and Silver released surface sample results.   ON MINING, Fortuna Silver is awaiting a resolution on an application to continue mining at San José, in Oaxaca. Agnico Eagle, Altaley Mining, Guanajuato Silver, Alamos Gold, Coeur Mining, Gold Resource and Fresnillo PLC presented their Q3 2021 reports. Guanajuato Silver shipped its first concentrate from El Cubo mill. ON FINANCING, for the first time in a long period, no relevant news on this matter. ON RESOURCES AND DEVELOPMENT, Sonoro Gold plans a 10,000 m RC drilling campaign alongside the development of a 15 K tpd leach mining operation at Cerro Caliche in Sonora. A PEA has been filed. Barksdale Resources released good drilling results from San Javier, in Sonora. SilverCrest Metals continues construction on budget and on schedule at Las Chispas, Sonora. Excellon Resources presented high-grade drilling results from Platosa, in Durango. Silver Dollar is preparing for drilling at La Joya, Durango. Southern Silver Exploration updated the resource estimate at Cerro Las Minitas, Durango. GoGold Resources released drilling results from Los Ricos North project in Jalisco. Orex Minerals pointed that Fresnillo PLC, its JV partner at the Coneto project in Durango, released a maiden resource estimation. Mag Silver reported production from development at Juanicipio, Zacatecas by its JV partner Fresnillo PLC.   ON DEALS AND CORPORATE ISSUES, Avino silver & Gold Mines acquired the La Preciosa project, neighboring its Avino mine in Durango. Advance Gold filed a patent for lithium extraction from clays and fine sands. ON SOCIAL RESPONSIBILITY, Fresnillo PLC informed on health campaigns in Zacatecas.

ON MEXICO ISSUES

  • Geovanna Bañuelos, senator by the Partido del Trabajo (PT) asked for the Mining Fund to be reinstated in benefit to communities and municipalities where mining takes place.
  • Rocío Nahle, head of the Energy Secretariat, confirmed plans to create a lithium State company, as part of a wider reform in the electricity industry, same that is seen as containing expropriation streaks. The private sector is overwhelmingly against this reform, that is seen to conduct to higher energy prices and pollution, as well to scare other investments from the country.
  • Mixed results for Mexican Mining companies reflect changes in metal prices. Companies that have seen their stock tumble during 2021 include Fresnillo (-20.7% in Mexico, -18.3% in London). Peñoles (-11.4%) and Frisco (-4.2%) by their exposure to precious metals that have contracted by 5% in the case of gold and 7.4% for silver. Companies that have seen their stock appreciate include Autlán (+23.5%) and Grupo Mexico (+13.5%), the latter due to the 26.7% increase in the copper price.

ON EXPLORATION

  • Silverton Metals Corp. updated on the exploration activities at the Pluton project in Durango. The company’s processing and 3-D modelling of geophysical data is showing features not previously identified and defined new target areas. “Magnetometry reprocessing has been completed while ZTEM and gravity modelling are in progress. Permitting is underway for a seismic test line scheduled to be surveyed before year end. The seismic profile is expected to determine the depth to carbonate rocks” which might determine the depth to the favorable carbonate rocks.
  • Brigadier Gold Ltd. released results from additional trenches at El Placer Sur vein system at its 3,954-hectare Picachos project in Sinaloa. The property shows a porphyry Cu-Mo in an intrusive complex and Au-Ag-Cu-Pb-Zn veins. Intrusion hosted bulk tonnage coppers is exposed on the lower elevations, with sericitic breccias bearing Mo-rich stockworks a little bit above and peripheral to these, Au-Cu-Pb-Zn veins occur with propylitic, argillic and sericitic alteration on host rocks. At EL Placer Sur, veins historically mined on narrow widths are showing wider spans in trenches, like 10.65 m @ 2.08 gpt Au, 38 gpt Ag, 638 ppm Cu, 2.9% Pb, 3.5% Zn; 5 m @ 3.37 gpt Au, 3 gpt Ag.
  • Radius Gold Inc. released high-grade results from drilling by Pan American Silver Corp. of the California target at the Amalia project in Chihuahua. “The California vein breccia system has been mapped for 2.8km” with 3,814 m of drilling limited to 1km. Reported intervals include 6.20 m @ 93 gpt Ag, 0.43 gpt Au; 27.30 m @ 90 gpt Ag, 0.26 gpt Au; 50.40 m @ 50 gpt Ag, 0.05 gpt Au; 3.95 m @ 487 gpt Ag, 2.15 gpt Au; 17.15 m @ 35 gpt Ag, 0.07 gpt Au; 1.75 m @ 578 gpt Ag, 0.27 gpt Au; 11.20 m @ 379 gpt Ag, 1.26 gpt Au; 26.90 m @ 353 gpt Ag, 2.59 gpt Au (including 7.50 m @ 976 gpt Ag, 7.38 gpt Au); 11.15 m @ 99 gpt Ag, 0.64 gpt Au.
  • Reyna Silver Corp. reported initial results for its 13-hole drilling program at Guigui, in Chihuahua. “The program was designed to narrow down the location of the probable source intrusion for the Santa Eulalia District- Mexico’s largest known Carbonate Replacement Deposit (CRD)”. Two holes cut a 200 m thick rhyolitic intrusion, starting at 1,309 m of depth, previously unknown in the district, with extensive high-grade mineralization at its base. The highlighted interval comprises 54.90 m @ 23 gpt Ag, 0.67% Pb, 1.86% Zn, including 15.80 m @ 60 gpt Ag, 2.19% Pb, 5.85% Zn. The epidote skarn present shows textural evidence for multiple stages of formation that point to repeated pulses of mineralization related to a possible multi-phase intrusive center (Note by Editor.- Congratulations to Peter Megaw, who has been relentlessly pursuing this beast for several
  • Sierra Madre Gold and Silver Ltd. released results from assaying of 319 reconnaissance surface samples at La Tigra, Nayarit. The samples average 0.48 gpt Au, with 10% of the total returning more than 1 gpt Au and a peak of 18.2 gpt Au.
  • Colibri Resource Corp. updated on preparations for drilling at Evelyn in Sonora. Current work includes geological mapping and sampling, as well as construction of drill access roads and pads. The incoming reverse circulation program of up to 10,000 m will be based on the surface distribution of higher-grade assay results coincident with magnetic gradients and lineaments, as well as mapped structures.

ON MINING

  • Fortuna Silver Mines Inc. informed the company filed with SEMARNAT (Environmental regulator) an application to extend by ten years the term of the environmental impact authorization (EIA) on its San Jose mine in Oaxaca. SEMARNAT has failed to resolve timely on the application, and Fortuna has obtained a provisional injunction from a federal court that allows the continued operation of the San Jose mine beyond the expiry date of the EIA. The company is seeking “an additional injunction to permit the continued operation of the San Jose Mine until the extension to the EIA is granted”.
  • Agnico Eagle Mines Ltd. presented Q3 2021 results, including figures from its Mexican operations. At Pinos Altos, in Chihuahua, 444 K tonnes were processed at a rate of 4,826 tonnes per day (tpd), averaging 2.40 gpt Au, to produce 32,402 Oz Au at production cash cost $1,156 per Oz Au and total cash cost of $854 per Oz Au. At Creston Mascota, residual leaching produced 2,988 Oz Au at $593 per Oz Au and total cost of $486 per Oz Au. At La India, in Sonora, 1.23 M tonnes were processed at a rate of 13,402 tpd and a grade of 0.62 gpt Au, to produce 17,124 Oz Au at a production cost of $931 per Oz Au and a total cash cost of $971 pr Oz Au.
  • Altaley Mining Corp. provided preliminary production results for the quarter ending on September 30, 2021. At Campo Morado in Guerrero, 163.7 K tonnes were milled @ 1.2 gpt Au, 129 gpt Ag, 1.1% Pb, 4.5% Zn, recovering 22% Au, 46% Ag, 31% Pb, 74% Zn to produce 11.8 K tonnes of Zn concentrate and 2.7 K tonnes of Pb concentrate.
  • Guanajuato Silver Company Ltd. announced the first shipment of Au-Ag concentrate from El Cubo mill in Guanajuato. Approximately 75 tonnes of concentrate produced on the recently refurbished processing plant, averaging 200 Oz Ag per tonne and 2 Oz Au per tonne.
  • Alamos Gold Inc. presented its third quarter 2021 production report, including figures from its Mexican operations. At Mulatos, in Sonora, 744.8 K tonnes of ore and 1.675 M tonnes of waste were moved, with 1.58 M tonnes stacked @ 1.08 gpt Au, containing 54,999 Oz Au with a recovery rate of 49% Au to produce 26,700 Oz Au. A further 6.3 M tonnes of waste were moved at La Yaqui Grande pit, as part of pre-stripping. Production was significantly impacted by an above-average rainy season.
  • Coeur Mining Inc. reported third quarter financial results including figures from its operation in Mexico. At Palmarejo in Chihuahua, 517.4 K tonnes were milled @ 1.55 gpt Au, 120 gpt Ag, recovering 93.7% Au, 85.5% Ag to produce 24,254 Oz Au, 1.7 M Oz Ag. La Preciosa deposit in Durango was sold to Avino Silver & Gold Mines Ltd. for a total potential consideration between 58.8 M and $93.4 M plus two royalties.
  • Gold Resource Corp. reported Q3 2021 results. At the Don David mine in Oaxaca, 155.5 K tonnes were milled @ 1.26 gpt Au, 68 gpt Ag, 0.40% Cu, 1.9% Pb, 5.0% Zn, to produce 4,728 Oz Au, 324.6 K Oz Ag, 428 tonnes Cu, 2,157 tonnes Pb, 5,538 tonnes Zn.
  • Fresnillo PLC reported production of 12.7 M Oz Ag in the third quarter of 2021. The company maintains the 2021 guidance between 53.5 M Oz Ag and 59.5 M Oz Ag.

ON FINANCING

  • No Relevant News.

ON RESOURCES AND DEVELOPMENT

  • Sonoro Gold Corp. intends to resume drilling at the Cerro Caliche project in Sonora, with a 10,000 m reverse circulation (RC) drilling campaign. The drilling is to proceed alongside the proposed development of 15,000 tonnes per day (tpd) heap leach mining operation. The six-month program is to focus in expanding oxide gold mineralization and some potential high-grade targets in a total of 12 zones, with holes averaging 100-110 m in depth.
  • Barksdale Resources Corp. released good drill results from the current 5,000m program at its San Javier project in Sonora. Results from the Cerro Verde zone testing gaps between historically known mineralization intercepted 38.5 m @ 0.38% Cu, 0.38 gpt Au and 51 m @ 0.32% Cu, 0.29 gpt Au in one hole, with a 27 m 1.97 gpt Au interval partially overlapping with these two zones. Another hole intercepted 105 m @ 0.63% Cu, 0.40 gpt Au, including 15 m @ 1.01% Cu; 9 m @ 1.57% Cu, 2.20 gpt Au; with a 18 m @ 1.77 gpt Au, 0.97% Cu interval partially overlapping and an independent 21 m @ 0.55 gpt Au interval. To date 24 diamond drill holes have been completed, of which the first four were drilled partially or completely in PQ size (for metallurgical studies), and the rest as HQ size.  
  • SilverCrest Metals Inc. advised project construction continues on schedule and budget at its Las Chispas property in Sonora. Well-advanced or completed areas comprise the plant detailed engineering, process plant construction, electrical powerline (81 Km) construction, bridge construction, confined camp construction, access road construction, underground development, underground infrastructure and stockpile growth, dry stack tailings facility and assay lab construction.
  • Excellon Resources Inc. presented results from underground drilling at Platosa, in Durango. Highlighted core-length intervals comprise 7.5 m @ 648 gpt Ag, 2.6% Pb, 1.4% Zn; 2.2 m @ 2,160 gpt Ag, 24.6% Pb, 7.2% Zn; 0.5 m @ 4,451 gpt Ag, 8.8% Pb, 12.2% Zn, 0.2 gpt Au; 3.4 m @ 501 gpt Ag, 5.8% Pb, 4.4% Zn; 0.9 m @ 1,310 gpt Ag, 9.8% Pb, 4.2% Zn, 0.1 gpt Au; 1.4 m @ 585 gpt Ag, 4.5% Pb, 3.0% Zn; 3.4 m @ 766 gpt Ag, 4.7% Pb, 3.5% Zn; 1.5 m @ 445 gpt Ag, 3.9% Pb, 7.4% Zn; 2.7 m @ 523 gpt Ag, 3.5% Pb, 8.5% Zn; 1.9 m @ 748 gpt Ag, 4.0% Pb, 12.8% Zn.
  • Silver Dollar Resources Inc. is relogging and resampling select historical drill core, along with targeted surface sampling and mapping to refine drill locations for its incoming drilling program at La Joya, Durango.
  • Southern Silver Exploration Corp. updated its mineral resource estimate on Cerro Las Minitas project in Durango. Indicated sulfide mineral resources stand at 12.32 M tonnes @ 106 gpt Ag, 0.07 gpt Au, 1.3 % Pb, 3.3% Zn, 0.16% Cu (347 gpt AgEq) containing 42.1 M Oz Ag, 28 K Oz Au, 358 M Lb Pb, 895 M Lb Zn, 44 M Lb Cu (137.3 M Oz AgEq) and inferred sulfide resources at 19.6 M tonnes @ 117 gpt Ag, 0.12 gpt Au, 1.2% Pb, 2.3% Zn, 0.23% Cu (314 gpt AgEq), containing 73.6 M Oz Ag, 78 K Oz Au, 500 M Lb Pb, 1,009 M Lb Zn, 98 M Lb Cu (197.7 M Oz AgEq).
  • GoGold Resources Inc. released the results of four drill holes from the El Favor East zone at its Los Ricos North project in Jalisco. Highlighted core-length results comprise 10.1 m @ 0.14 gpt Au, 42 gpt Ag; 27.5 m @ 0.04 gpt Au, 40 gpt Ag; 22.0 m @ 0.45 gpt Au, 151 gpt Ag (including 1.3 m @ 4.16 gpt Au, 827 gpt Ag); 20.0 m @ 0.37 gpt Au, 122 gpt Ag; 4.8 m @ 0.28 gpt Au, 107 gpt Ag; 1.4 m @ 0.40 gpt Au, 29 gpt Ag; 1.3 m @ 0.15 gpt Au, 60 gpt Ag; 12.1 m @ 0.32 gpt Au, 89 gpt Ag (including 1.3 m @ 1.94 gpt Au, 348 gpt Ag). The new drilling extended El Favor East for another 150 m.
  • Orex Minerals Inc. announced that the joint venture company which is 55% Fresnillo and 45% Orex received results from the first mineral resource estimate at the Coneto project in Durango. A total of 38,515 m of drilling in 106 diamond holes were used to calculate 5.32 M tonnes @ 1.67 gpt Au, 112 gpt Ag (3.15 gpt AuEq) containing 286 K Oz Au, 19.1 M Oz Ag (538 K Oz AuEq) in inferred resources.
  • Mag Silver Corp. reported 2021 third quarter production of underground development material from the Juanicipio project (56% Fresnillo PLC/44% Mag Silver). During the period 57.1 K tonnes were processed to produce 667.5 K Oz Ag, 1,107 Oz Au. “Construction of the Juanicipio processing plant continues to make good progress, with the focus now on transitioning from construction to commissioning activities”.
  • Sonoro Gold Corp. filed a preliminary economic assessment (PEA) of the Cerro Caliche project in Sonora. The report envisages a Pre-Tax NPV (5%) of US$6.7 M and an IRR of 52.7% with a price of US$1,750 per Oz Au; 7 years of life of mine producing an average of 45.7 K Oz Au for a total of 325 K Oz Au; recoveries of 74% Au and 27% Ag; AISC of US$1,351 per Oz Au; 349 K Oz Au measured and indicated resources at 0.41 gpt Au and 71 K Oz Au of inferred resources at 0.40 gpt Au.

ON DEALS AND CORPORATE ISSUES

  • Advance Gold Corp. filed a patent application to extract lithium and potassium from clay and fine sand salars. The company intends to use this environmentally friendly method from its properties in central Mexico. The method uses water and an electrical process to obtain a solution of Li and K that can produce a high-grade concentrate from which Li and K extracted using organic compounds.
  • Avino Silver & Gold Mines Ltd. acquired the La Preciosa project in Durango from Coeur Mining Inc. through the purchase of the shares of holding companies. La Preciosa is neighboring to the Avino mine, with operational synergies due to its location. Furthermore, metallurgical testing of ore achieved 80% Au and 60% gold recovery using flotation methods currently used at Avino’s mill facilities. La Preciosa holds 99 Moz Ag, 189 K Oz Au in indicated resources and 21 M Oz Ag, 35 K Oz Au in inferred resources. Avino agreed to pay a cash consideration of $15 M on closing and $5 M a year after closing, and issue 14 M shares (~12% of Avino stock will be owned by Coeur). A contingent cash consideration of $8.75 M will be paid within one year of commencement of mining. “Coeur will retain ownership of a 1.25% net smelter return royalty on the Gloria and Abundancia areas of La Preciosa, and a 2.00% gross value royalty on all areas of La Preciosa other than the Gloria and Abundancia areas”.

ON SOCIAL RESPONSIBILITY

  • Fresnillo PLC informed on health campaigns in Zacatecas.

On the image below: Calc-sodic alteration along epidote veinlets in intrusive rocks on a project in the Sonoran Desert. Picture by Jorge Cirett.

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

Boiling texture in a quartz vein.

By Miguel A Heredia

During the 42nd week of the year (October 18th to October 24th, 2021), at least 21 press releases were announced by companies working in Mexico and 14 news published by the media, with nine commenting on Mexican issues, six reporting resources and developments, six announcing financial issues, four communicating production and financial results, four informing on exploration results, four discussing social issues, and two disclosing deals and corporate issues.  ON MEXICO ISSUES, Governors of Guerrero, Chihuahua, and Durango showed their support for the mining industry during the inauguration of the XXXIV International Mining Convention in Acapulco. Jaime Gutiérrez Núñez, president of The Mining Chamber of Mexico (CAMIMEX) stated that the uncertainty will affect investments in the mining sector in Mexico. Tonatiuh Herrera Gutiérrez, Undersecretary of Promotion and Environmental Regulations of the Secretariat of the Environment and Natural Resources (SEMARNAT), warned that the agency will keep consultations on land use for the mining activity. Miguel Ángel Riquelme Solís, governor of Coahuila State and Grupo Mexico signed an agreement to regularize properties in the Carboniferous Region of Coahuila. The Mining Commission of the State Congress was installed in Sonora. Octavio Alvídrez, CEO of the Mexican precious metals Fresnillo plc stated that mining in Mexico currently has an “unfavorable” environment due to recent government policies. The Mexican Geological Service (SGM) will invest MXP $55.2M between this year and the next in the exploration of lithium. Karen Flores, director of the Mining Chamber of Mexico (CAMIMEX) stressed that due to lack of mineral concessions the mining industry in Mexico loses USD $25B. Sergio Almazán, president of the Association of Mining Engineers, Metallurgists and Geologists of Mexico (AIMMGM), highlighted the relevance of the mining industry for the country’s economy in the inauguration of the XXXIV International Mining Convention in Acapulco. ON EXPLORATION, In Baja California, One World Lithium announced that drill hole # 4 collared at its Salar del Diablo project, reached a total depth of 518m. In Sonora, Benjamin Hill reported that it has completed the location of 15 drill holes for the upcoming inaugural drill program at its Benjamin Hill project. In Nayarit, Sierra Madre released results of the first 11 trenches at its Tepic project. In Jalisco, Stroud provided an update of its 2021 Phase I drilling program conducted at its Santo Domingo project.  ON MINING, Excellon reported Q3, 2021 production results from its Platosa mine in Durango.  Mexus Gold announced a revenues increase at its Santa Elena mine in Sonora. Santacruz Silver announced Q3, 2021 production results from their Zimapan and Rosario mines located in Hidalgo and San Luis Potosi respectively. Sierra Metals reported Q3, 2021 production results from their Bolivar and Cusi mines in Chihuahua. ON FINANCING, Azucar Minerals granted stock options to a director to purchase 400K common shares at a price of $0.09 per share (El Cobre project, Veracruz). Barksdale provided an update regarding the secured loans that the company holds in Regal Resources (San Javier, Sonora). Canasil announced an initial non-brokered private placement for gross proceeds of up to $500K and later on it increased to $650K with additional $150K via flow-through shares (Nora project, Durango). Heliostar closed the first tranche of a non-brokered private placement offering for gross proceeds of $1,300,225.50 (Cumaro project, Sonora). Xali announced a non-brokered private placement for gross proceeds of approximately CAD $500K (El Oro project, State of Mexico). ON RESOURCES AND DEVELOPMENT, Chesapeake announced that a 16 holes infill drill program will commence in November at its Metates project in Durango.  Discovery Silver reported an updated Mineral Resource Estimate on its flagship Cordero project in Chihuahua State. Fabled released results from three holes collared at its Santa Maria project, Chihuahua.  Golden Minerals presented results from 25 recently completed RC holes at its Rodeo property in Durango. Impact Silver released results from and underground development drilling program of its Guadalupe mine in the Zacualpan mining district in the State of Mexico. Silver Tiger announced high grade results from its ongoing drilling program conducted at its El Tigre project in Sonora. ON DEALS AND CORPORATE ISSUES, Minera Gorrión S.A. de C.V. , a subsidiary company of Almaden Minerals Ltd., announced the completion of a Human Rights Impact Assessment (HRIA) for the Ixtaca mine development project in Puebla. One World Lithium announced the engagements of two new consultants (Salar del Diablo project, Baja California). ON SOCIAL RESPONSIBILITY, José Rosas Aispuro, Governor of Durango, highlighted that mining is synonymous with respect for human rights and has to be synonymous with respect for the environment. New Zealand Ambassador proposes to the Mexico mining industry to work with social inclusion and sustainability. The VP in Mexico of Torex Gold reiterated that its subsidiary Minera Media Luna is committed to the economic and social progress of the communities at the Guerrero mining corridor. Mulatos Mine of Alamos Gold, announced that it has reduced its lighting consumption by 70%, 10% in diesel and 25% in CO2 emissions.

ON MEXICO ISSUES

  • Governors of Guerrero, Chihuahua, and Durango showed their support for the mining industry during the inauguration of the XXXIV International Mining Convention in Acapulco because it represents a lever for the economic development of the country. They promised to respect the rule of law to promote the investment in the sector that generates jobs and benefits to the communities where it operates.
  • Jaime Gutiérrez Núñez, president of The Mining Chamber of Mexico Camimex stated that the suspension of new mining concessions as well as the effects of the possible approval of the electricity reform and the heavy tax burden is generating strong uncertainty in the mining sector in Mexico.
  • Tonatiuh Herrera Gutiérrez, Undersecretary of Promotion and Environmental Regulations of the Secretariat of the Environment and Natural Resources (SEMARNAT), warned that the agency will keep consultations on land use for mining activity. Jaime Gutierrez Núñez, president of CAMIMEX responded that the companies affiliated to said organization do not oppose to the consultations on land use for mining activity, but emphasized that times should be established for conducting such consultations. Likewise, the Director of CAMIMEX, Karen Flores Arredondo stressed that “the rules of the game” must be clear and based on the General Consultation Law.
  • Miguel Ángel Riquelme Solís, governor of Coahuila State and Grupo Mexico signed an agreement to regularize properties in the Carboniferous Region of Coahuila. This regulation agreement represents legal certainty for more than 400 families in the Carboniferous Region.
  • The Mining Commission of the State Congress was installed, chaired by the deputy for Morena, Próspero Valenzuela Muñer to meet the demands and open a space for dialogue with the mining sector in Sonora. In that sense, he mentioned that it is important that said commission lays the foundations for the detonation of economic development and well-being in Sonora, taking advantage of the fact that this entity constitutes one of the main mining states in the country.
  • Octavio Alvídrez, CEO of the Mexican precious metals Fresnillo plc stated that mining in Mexico currently has an “unfavorable” environment due to recent government policies. President Andrés Manuel López Obrador has been criticized by the mining industry for his policy of not granting new concessions, as well as for what he has described as unprecedented regulatory delays. The president further fueled industry concerns by recently proposing to Congress a controversial energy constitutional reform that rejects concessions for Lithium.
  • The Mexican Geological Service (SGM) will invest MXP $55.2M between this year and the next in the exploration of lithium  with a view to finding an economically viable deposit, informed its director, Flor de María Harp. Exploration work will be carried out in 52 areas during 2021 and in another 30 in 2022. She explained that the country needs hard data so that we are not talking about what we believe, imagine or assume, but about data that have a technical basis. The official insisted that in Mexico expectations have been generated around lithium that is not real, because there is still no hard data on the potential of the mineral.
  • Karen Flores, director of the Mining Chamber of Mexico (CAMIMEX) stressed that due to lack of mineral concessions the mining industry in Mexico loses USD $25B with the consequent absence of jobs generation and the fiscal contribution. So far in this six-year term, no new concessions have been granted, in addition to the fact that there are procedures stopped that have also impacted on the continuity of some mining projects.
  • Sergio Almazán, president of the Association of Mining Engineers, Metallurgists and Geologists of Mexico (AIMMGM), highlighted the relevance of the mining industry for the country’s economy in the inauguration of the XXXIV International Mining Convention in Acapulco. CAMIMEX, in its 2020 report stated that the industry currently generates around 408,000 direct jobs, plus almost 2 million indirect jobs. It means that many Mexican families literally live from mining. Mining activity stands out as the fifth earner of foreign currency to the country. He also highlighted that Mexican mining is a formal, modern, sustainable, safe, fiscally responsible industry, with competitive salaries and high quality standards.

ON EXPLORATION

  • One World Lithium Inc., announced that drill hole # 4 collared at its Salar del Diablo project in Baja California, reached a total depth of 518m and that sampling has been completed between 331 to 338m and a second zone between 460 to 518m. Samples have been submitted to the lab and results will be released once are received.
  • Benjamin Hill Mining Corp., announced that it has completed the location of 15 drill holes for the upcoming inaugural drill program at its Benjamin Hill project in Sonora. The goal of the drill program is to better understand the behavior of the mineralization at depth and drill-test the continuity of high-grade mineralization structures that are thought to be open down dip and on strike. 
  • Sierra Madre Gold and Silver Ltd., released results of the first 11 trenches at its Tepic project. Highlights include TZ005 with 68 g/t Ag and 0.3 g/t Au (91 g/t AgEq) over 10.5m; TZ011 with 39 g/t Ag and 1.06 g/t Au (119 g/t AgEq) over 10.1m,; and TZ 011A with 54 g/t Ag and 6.52 g/t Au (43 g/t AgEq) over 9.2m.
  • Stroud Resources Ltd., provided an update of its 2021 Phase I drilling program conducted at its Santo Domingo project in Jalisco. Stroud has completed 14 diamond holes for a total of 5,725m with the aim to explore the extent of known vein-hosted silver mineralization that run parallel to the existing La Raya and Guadalupe vein systems. Sampling and assaying of the drill core has begun and results will be released once they become available.

ON MINING

  • Excellon Resources Inc., reported Q3, 2021 production results from its Platosa mine in Durango. The company mined 21,592 tonnes and milled 21,302 tonnes of 526 g/t Ag, 4.9% Pb, and 5.4% Zn with metallurgical recoveries of 90.9%, 81.2%, and 78.3% respectively to produce 326.7K Oz Ag, 1.87M Lb Pb, and 1.98M Lb Zn (521.2K Oz AgEq).
  • Mexus Gold US announced a revenues increase at its Santa Elena mine in Sonora. “Mineralized material run through the crushing circuit and placed on the heap leach pad is currently assaying at an average of 4.6 g/t Au and 8 g/t Ag. The company will begun a new round of blast hole drilling on October 18th. These efforts will produce 15,000 tons of high-grade gold material for processing through the crushing/leaching circuit”. These efforts indicate a potential 1.5M Oz Au resource on the property.
  • Santacruz Silver Mining Ltd., announced Q3, 2021 production results from their Zimapan and Rosario mines located in Hidalgo and San Luis Potosi respectively. At Zimapan mine, Hidalgo, the company milled and processed 186,642 tonnes of 73 g/t Ag, 0.6% Pb, 2.53% Zn, and 0.35% Cu to produce 313.5K Oz Ag, 2.26M Lb Pb, 8.39M Lb Zn, and 1.1M Lb Cu (867.2K Oz AgEq). At Rosario mine, San Luis Potosi, the company milled and processed 2,306 tonnes of 41 g/t Ag, 0.15 g/t Au, 0.2% Pb, and 1.2% Zn to produce 2,548 Oz Ag, 8,960 Lb Pb, and 53.8K Lb Zn (5,698 Oz AgEq).
  • Sierra Metals Inc., reported Q3, 2021 production results from their Bolivar and Cusi mines in Chihuahua. At Bolivar mine, Chihuahua, the company processed 364,941 tonnes of 0.61% Cu, 11 g/t Ag, and 0.1 g/t Au at metallurgical recoveries of 73.06%, 71.97%, and 73.23% respectively to produce 3.6M Lb Cu, 95K Oz Ag, and 899 Oz Au (796K Oz AgEq or 4.53M Lb CuEq). At Cusi mine, Chihuahua, Sierra Metals processed 61,071 tonnes of 161 g/t Ag, 0.18 g/t Au and 0.6% Pb at metallurgical recoveries of 82.63%, 55.89%, and 82.64% respectively to produce 261K Oz Ag, 193 Oz Au and 695K Lb Pb (306K Oz AgEq).

ON FINANCING

  • Azucar Minerals Ltd., granted stock options to a director to purchase 400K common shares at a price of $0.09 per share, which expire on February 28, 2024 (El Cobre project, Veracruz).
  • Barksdale Resources Corp., provided an update regarding the secured loans that the company holds in Regal Resources Inc. Regal owes approximately $1.8M to Barksdale. Regal has until October 24, 2021 to file a cash-flow forecast that needs to be reviewed and signed by its proposal trustee.  If Regal is unable to repay its creditors or fails to put forward a proposal that is accepted by the creditors, it will enter bankruptcy (San Javier, Sonora).
  • Canasil Resources Inc., announced an initial non-brokered private placement of up to 4M units at a price of $0.125 for total gross proceeds of up to $500K. In addition to the non-brokered private placement the company will include up to 1M flow-through shares at $0.15 per flow-through share for a total of $150K. Canasil will use the gross proceeds from the non-brokered private placement to fund drill programs of their projects in Durango and Zacatecas (Nora and La Esperanza projects, Durango-Zacatecas).
  • Heliostar Metals Limited, closed the first tranche of a non-brokered private placement offering of up to 5,714,285 units at a price of $0.70 per unit for gross proceeds of $1,300,225.50. Part of the gross proceeds will be used to advance their Mexican projects, focusing primarily on the proposed Cumaro drill program in Q4, 2021, as well as for working capital and general corporate purposes.
  • Xali Gold Corp., announced a non-brokered private placement for gross proceeds of approximately CAD $500K. “Approximately CAD $250K of the gross proceeds will be used to further our permitting and targeting for drilling programs on our gold-silver projects and approximately CAD $250K will be used for working capital and general corporate purposes”  (El Oro project, State of Mexico).

ON RESOURCES AND DEVELOPMENT

  • Chesapeake Gold Corp., announced that a 16 holes infill drill program will commence in November at its Metates project in Durango. This infill program will consists of 6,700m with holes ranging from 250 to 650m depth, and will be drilled with the same orientation to maintain consistency with earlier drilling. “The infill drill program will further define the geological structural controls, expand drill density, and provide additional composite metallurgical samples for variability testing”.
  • Discovery Silver Corp., reported an updated Mineral Resource Estimate on its flagship Cordero project in Chihuahua State. The company reported Measured + Indicated Resources for 541M tonnes with grades of  20 g/t Ag,  0.6 g/t Au, 0.3% Pb, and 0.5% Zn (48 g/t AgEq), for a total of 344M Oz Ag, 1.04M Oz Au, 3,424M Lb Pb, and 6,132M Lb Zn (837M Oz AgEq), and Inferred Resources for  108M tonnes of 14 g/t Ag, 0.03 g/t Au, 0.2% Pb, and 0.4% Zn (34 g/t AgEq) for a total of 49M Oz Ag, 99K Oz Au, 451M Lb Pb, and 909M Lb Zn (119M Oz AgEq). The Resource is pit-constrained with an estimated waste-to-ore ratio of 1.1 and is supported by 224,000m of drilling in 517 drill holes and reinterpreted structural and geological models of the deposit. 87% of the contained metal is in the Measured and Indicated category.
  • Fabled Silver Gold Corp., released results from three holes collared at its Santa Maria project, Chihuahua. The most interesting drill interval was encountered in hole SM20-35 with 18.80m of 0.25 g/t Au, 9 g/t Ag (22 g/t AgEq), 0.2% Pb, and 0.5% Zn, including 0.50m of 1.1 g/t Au and 16 g/t Ag (73 g/t AgEq), 0.5% Pb, and 1% Zn, plus 1.65m of 1.93 g/t Au and 32 g/t Ag (131 g/t AgEq), 0.8% Pb, and 2% Zn. With these three holes concluded the Phase 1 exploration drill program and the plan now is to be focused on definition drilling to outline the previously discovered zones or trends. The company mentioned that Au is related to the northwest trending mineralized diorite dike encountered in present drilling. “The previous first modeled diorite dike was over 440 meters and now has been extended to a minimum of 1,000 meters in strike length and 400 meters at depth, open in all directions”.
  • Golden Minerals Company presented results from 25 recently completed RC holes at its Rodeo property in Durango. The company has drilled 47 RC holes totaling 3,187m, focusing on resource expansion and exploration of several targets located adjacent to the open pit. Highlights from the RC drill program include hole RRC_021_018 with 1 g/t Au and 5 g/t Ag over 54m, including 2.3g/t Au and 5 g/t Ag over 18m; RRC_021_020 with 1.7g/t Au and 12 g/t Ag over 26m, including 2.4 g/t Au and 16 g/t Ag over 8m, hole RRC_021_021 with 1.3 g/t Au and 17 g/t Ag over 56m, including 2.2 g/t Au and 18 g/t Ag over 24m: hole RRC_021_022 with 1g/t Au and 4 g/t Ag over 56m, including 3.9 g/t Au and 5 g/t Ag over 8m; and hole RRC_021_025 with 1.3 g/t Au and 6 g/t Ag over 52m, including 2.9 g/t Au and 11 g/t Ag over 18m.
  • Impact Silver Corp., released results from an underground development drilling program of its Guadalupe mine in the Zacualpan mining district in the State of Mexico. High grade drill intercepts were encountered in holes MPZ-UG-023-21 with 464 g/t Ag, 0.3%Pb, and 0.8% Pb over a true width (TW) of 6.04m at Carolina Vein and 300 g/t Ag, 0.3% Pb and 1.2% Zn over a TW of 3.44m at Dolores Bajo Vein; hole MPZ-UG-024-21 with 2,186 g/t Ag, 1.7% Pb, and 3.4% Zn over a TW of 3.38m at Carolina Vein; hole MPZ-UG-025-21 with 425 g/t Ag, 0.3% Pb, and 0.8% Zn over a TW of 3.47m at Carolina Vein and 527 g/t Ag, 0.9% Pb, and 1.9% Zn over a TW of 1.63m at Dolores Bajo Vein; hole MPZ-UG-028-21 with 486 g/t Ag, 0.3% Pb, and 1.2% Zn over a TW of 1.57m at La Rata Vein and 232 g/t Ag, 0.5% Pb, and 1% Zn over a TW of 5.94m at Kena Vein; and hole MPZ-UG-029-21 with 161 g/t Ag, 0.1% Pb, and 0.3% Zn over a TW of 2.12m at Carolina Vein, 269 g/t Ag, 0.2% Pb, and 0.4% Zn over a TW of 3.57m at Carolina Bajo Vein, and 427 g/t Ag, 0.5% Pb, and 0.6% Zn over a TW of 3.12m at Dolores Vein.
  • Silver Tiger Metals Inc., announced high grade results from its ongoing drilling program conducted at its El Tigre project in Sonora. Highlights include hole ET 21-244 collared in the Sooy Vein with 0.16 g/t Au, 455 g/t Ag, 0.12 % Cu, 0.3% Pb, and 0.2% Zn (491 g/t AgEq) over 7.5m, including 0.33 g/t Au, 1,073 g/t Ag,  0.3% Cu, 0.8% Pb, and 0.3% Zn (1,156 g/t AgEq) over 2.5m, including 1.3 g/t Au, 3,531 g/t Ag, 1.06 % Cu, 3.6% Pb, and 1.2% Zn (3,856 g/t AgEq) over 0.5m, plus an interval in the FW zone of 0.13 g/t Au, 593 g/t Ag, 0.13% Cu, 0.3% Pb, and 0.06% Zn (624 g/t AgEq) over 1.8m, including 0.4 g/t Au, 2,030 g/t Ag, 0.46% Cu, 1% Pb, and 0.2% Zn (2,133 g/t AgEq) over 0.5m; and hole ET 21-243 collared in the Benjamin Vein with 0.02 g/t Au, 92 g/t Ag, 0.07% Cu, 0.1% Pb, and 0.1% Zn (107 g/t AgEq) over 6.8m, including 0.02 g/t Au, 138 g/t Ag, 0.07% Cu, 0.1% Pb, and 0.1% Zn (155 g/t AgEq) over 4.3m, including 0.05 g/t Au, 864 g/t Ag, 0.54% Cu, 0.5% Pb, and 1% Zn (965 g/t AgEq) over 0.5m.

ON DEALS AND CORPORATE ISSUES

  • Minera Gorrión S.A. de C.V. , a subsidiary company of Almaden Minerals Ltd., announced the completion of a Human Rights Impact Assessment (HRIA) for the Ixtaca mine development project in Puebla. The HRIA is one of the most innovative, comprehensive and proven effective tools worldwide to estimate the potential impacts and corresponding mitigation measures in favor of the human rights of the communities located within the area of ​​influence of this productive project. Minera Gorrión reiterates its commitment to the exercise of modern and avant-garde mining, absolutely committed to respecting Human Rights, caring for the environment and creation of opportunities for the communities of Ixtacamaxtitlán always with cultural relevance.
  • One World Lithium Inc., announced the engagements of Rayleigh Capital and J&L Strategic Solutions LLC,  that offer different consulting services that are mutually beneficial to increase global market awareness and different financing opportunities that are less reliant on equity offerings.  Both consultants are very familiar with green technologies  (Salar del Diablo project, Baja California).

ON SOCIAL RESPONSIBILITY

  • José Rosas Aispuro, Governor of Durango, highlighted that mining is synonymous with respect for human rights and has to be synonymous with respect for the environment.
  • Sara Meymand, New Zealand Ambassador proposed to the Mexico mining industry to work with social inclusion and sustainability. She assured during the XXIV edition of the Acapulco Mining Convention that working in inclusion development and sustainability put up the mining activity internationally, focused on the preservation of the environment, dialogue with communities, gender perspective, use of new technologies, job creation and economic growth. She also stressed the importance of promoting a social license in the mining industry, which will allow companies to act with responsibility, commitment and subject to the care of the environment.
  • The vice president in Mexico of Torex Gold Resourcers Inc., Faysal Rodríguez Valenzuela reiterated that Minera Media Luna (MML) maintains its commitment to the social and economic development of the 11 communities that make up the Guerrero mining corridor, located between the municipalities of Cocula and Eduardo Neri. He also pointed out that the social investment of each year is intended to help improve people’s quality of life and work towards the fulfillment of the sustainable development objectives.
  • Mulatos Mine of Alamos Gold, reduced its power consumption on lighting by 70%, 10% in diesel and 25% in CO2 emissions. Alamos Gold seeks to contribute to the care of the environment reducing energy consumption and CO2 emissions into the atmosphere.

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, boiling texture in an epithermal quartz vein system in a project in Sonora, Mexico.  Photo by Miguel A Heredia.

The Mining and Exploration News in Mexico: Highlights on the Second Week of October, 2021

By Jorge Cirett

During the 41st week of the year (October 11th to October 17th, 2021), at least 25 press releases were announced by companies working in Mexico. To note, six companies posted exploration advances on their properties, six released Q3 reports and one on commencement of mining, two on financing and eight more on project development or resource definition and one more on mining concessions acquisitions. ON MEXICO ISSUES, Mexico’s president presented a proposal to change the law in the energy industry, but also restricting lithium exploration and production to the government. Several other elements could be included in the bill, referred to as “strategic minerals”, without elaborating, although a government party senator named cobalt, niquel, rare earths and even copper. ON EXPLORATION, In Sonora, Benjamin Hill Mining released results from geophysical processing and from fluid inclusion studies that support a buried intrusive source for the mineralization at the Benjamin Hill property; Canuc Resources updated on its deep drilling program at San Javier; Colibri Resources received the permit to drill Evelyn. In Chihuahua, Kootenay silver increased land holdings at its Columba project. In Sinaloa, Vizsla Silver presented drilling results from the Tajitos zone at its Panuco project.   ON MINING, Guanajuato Silver commenced mining at El Cubo, in Guanajuato. First Majestic Silver, Golden Minerals, Gold Resource, Magna Gold, Aura Minerals and Avino Silver & Gold Mines presented its Q3 2021 reports. ON FINANCING, Candelaria Mining informed one of its lenders, Accendo Banco, had its operating permit revoked by Mexican authorities. Xali Gold announced Sun River Gold arranged a financing for US$6.5 M for the tailings project at El Oro, Estado de Mexico. ON RESOURCES AND DEVELOPMENT, GR Silver Mining filed a NI-43-101 technical report on the Plomosas project, Sinaloa. Orla Mining provided an update on the construction of the Camino Rojo Oxide project. Prime Mining released further drilling results from Los Reyes, Sinaloa. Fabled Silver Gold released underground drilling results for Santa Maria, in Chihuahua. GoGold Resources reported results from drilling at El Favor, on its Los Ricos North project located in Jalisco. Golden Tag resources is adding 4,500 m to its 2021 drilling program at San Diego, Durango. Capitan Mining reported results from drilling at El Capitan, in Durango. Zacatecas Silver is drilling the Panuco and Las Cruces areas, at its Zacatecas project, results pending.   ON DEALS AND CORPORATE ISSUES, Argonaut Gold acquired from Fresnillo PLC 4,791 ha in key concessions surrounding its San Agustin mine in Durango. ON SOCIAL RESPONSIBILITY, Minera Media Luna, Peñols, Newmont Peñasquito and Pan American Silver informed on community programs in education and health.

ON MEXICO ISSUES

  • Mexico is far from being a powerhouse in lithium production according to the Statistical Review of World Energy 2021 by BP. Australia, Chile and China hold 81.2% of reserves and 86.5% of lithium production, whereas Argentina, Brazil, Portugal, the United States and Zimbabwe account for 20.5% of reserves and 12.8% of the production. Camimex (Cámara Minera de México) points that the constitutional reform presented by the Mexican president lacks technical support, as even if there are several lithium projects in Mexico, none has proven economic viability. The most visible of these projects, in Sonora, is said to be the largest lithium prospect in the Globe, but its economic viability has still to be proven, as to date there is not a single mine of lithium in clays in the World.
  • Mexico will not grant lithium concessions, said the Mexican president. He stated that even if his electricity reform is not approved by congress, his government has the power to reject any request for a concession to mine lithium. “We will deny any request for a concession to mine lithium and we have the power to do so. We want this to be established in the constitution, lithium belongs to the state”.
  • Nationalistic views with control on “strategic minerals” have been voiced by Morena, the party in power in Mexico. Besides the explicit aim by the President to save all lithium extracting and processing activities for the government, his recent proposal also refers, without elaborating, to be applied in other “strategic minerals”. A senator form Morena mentioned these other minerals could include cobalt, nickel, rare earths and copper, although a spokeswoman from the Economy Secretariat mentioned that the list of strategic minerals was to be provided by the Mexican Geological Survey at a later date.

ON EXPLORATION

  • Canuc Resources Corp. updated on the exploration program at its San Javier project in Sonora. Three holes have been completed and a fourth one is in progress, currently at 922 m of depth and ongoing. Chalcopyrite has been encountered from 302 m and is still visible at 922 m of depth. “The drill hole has intersected a broad zone of variably stockworked and brecciated Barranca sediments with minor andesitic dykes. The Barranca sediments show contact metamorphism from about 461 m and downward, variable amounts of magnetite bearing veinlets, stringers and breccia matrix throughout”. The first two holes intercepted Barranca Formation sedimentary rocks with magnetite veinlets and best intercepts of 2.35 m @ 126 gpt Ag and 2.0 m @ 243 gpt Ag. The third hole was drilled on the Tarahumara Formation volcanic rocks for 500.5 m before being terminated due to drilling problems, intercepting several volcanic lithologies, chalcocite from 38 m of depth and sulfides including chalcopyrite from 332 m. Scattered gold and copper values on short intervals were intercepted, of up to 1.19 gpt Au and 0.41% Cu. Results for the current hole are still pending.
  • Colibri Resource Corp. received the needed permit to drill up to 56 holes at the Evelyn project in Sonora. “The fully funded drill program of up to 10,000 metres is expected to be conducted in two phases”.
  • Kootenay Silver Inc. increased its land holdings at its Columba project in Chihuahua. The company applied for a 10,825 hectare concession, supporting the decision to do so on the high-grade silver intercepts on drilling of the property.
  • Vizsla Silver Corp. presented the results from 23 new drill holes from the Tajitos vein at its Panuco project in Sinaloa. Highlighted true width intercepts comprise 1.38 m @ 1.16 gpt Au, 79 gpt Ag; 1.34 m @ 7.94 gpt Au, 960 gpt Ag; 0.70 m @ 4.16 gpt Au, 2,082 gpt Ag; 2.15 m @ 1.09 gpt Au, 188 gpt Ag; 1.38 m @ 2.83 gpt Au, 527 gpt Ag; 8.7 m @ 0.51 gpt Au, 99 gpt Ag; 1.99 m @ 2.46 gpt Au, 615 gpt Ag; 0.86 m @ 3.37 gpt Au, 315 gpt Ag; 1.39 m @ 3.26 gpt Au, 73 gpt Ag; 1.3 m @ 2.47 gpt Au, 600 gpt Ag; 1.50 m @ 9.90 gpt Au, 2,607 gpt Ag; 0.7 m @ 5.73 gpt Au, 1,115 gpt Ag; 4.38 m @ 1.62 gpt Au, 216 gpt Ag. The footprint of the Tajitos zone has been recognized for 800 m along strike and 300 m of depth.
  • Benjamin Hill Mining Corp. informed the seven kilometer long trend of epithermal mineralization at its Benjamin Hill project in Sonora is related to a well-defined magnetic anomaly. A magnetic high more than 12 kilometers long and 4 km wide lies beneath the surface, crossing the property in a N-NE orientation, with the Au-Cu mineralization parallel to the crest of the magnetic high.  “Our hypothesis explains that the magnetic anomaly corresponds to a partially exhumed fertile pluton. We suggest the mineralization seen at surface was driven by the heat engine of a buried pluton providing hydrothermal fluids that formed mineralized tabular bodies enriched with Au, Ag, and Cu (i.e. veins and breccias), as well as fluids that caused hydrothermal alteration halos (phyllic, epidote-magnetite and argillic alteration)…”.
  • Mammoth Resources Corp. updated on drilling at its Tenoriba project in Chihuahua. The company informed heavy rainfall during August and September is subduing by now, and that they expect an increase in the drilling rate that produced only 420 m of core in 8 weeks. “Mammoth intends to initially drill 2 – 4 holes within each target zone then move to another target zone to drill a similar number of holes”. Results on the first holes are pending.
  • Benjamin Hill Mining Corp. informed on results of fluid inclusion studies at its Benjamin Hill property in Sonora. The salinity and homogenization temperatures point to an epithermal system with an overprinting magmatic influence, and exhumation depths  between 150 m and 750 m in the mineralized structures. “This observation combined with recent geophysical data, supports the hypothesis of the existence of a mineralized plutonic source with a high possibility for Au-Cu metallic enrichment and porphyry potential”.

ON MINING

  • Guanajuato Silver Company Ltd. commenced to process silver-gold ore at its El Cubo mine and mill in Guanajuato. Prior to the start of mill operations, 20 K tonnes of material from El Cubo were mined and stockpiled, to be processed at 750 tonnes per day (tpd) in the plant with a capacity for 1,500 tpd, or over 500 K tonnes per year.
  • First Majestic Silver Corp. presented production results for the third quarte 2021, including figures from its three Mexican operations. At San Dimas, Durango, 214.2 K tonnes were processed at a rate of 2,328 tpd and a grade of 289 gpt Ag, 3.14 gpt Au, recovering 95% Ag, 96% Au to produce 20,767 Oz Au, 1.89 M Oz Ag. At Santa Elena in Sonora 234.9 K tonnes were processed grading 74 gpt Ag, 1.04 gpt Au, recovering 91% Ag, 96% Au to produce 508.6 K Oz Ag, 7,498 Oz Au. At La Encantada in Coahuila, 263.6 K tonnes were processed grading 134 gpt Ag, 0.02 gpt Au, recovering 80% Ag, 90% Au to produce 905 K Oz Ag, 114 Oz Au.
  • Golden Minerals Co. reported third quarter 2021 production from its Rodeo mine in Durango. The mill processed an average of 532 tpd at a grade of 4.0 gpt Au, recovering 76.5% Au to produce 4,777 Oz Au, 12,196 Oz Ag. Golden’s guidance for 2021 continues between 12 K – 14 K Oz Au and 25 K – 30 K Oz Ag.
  • Gold Resource Corp. presented preliminary third quarter 2021 production results. At its Arista mine in Oaxaca 98 K tonnes were milled at a rate of 1,353 tpd, grading 2.68 gpt Au, 91 gpt Ag, 0.37% Cu, 2.3% Pb, 4.8% Zn, to produce 6,933 Oz Au, 265.8 K Oz Ag, 1,808 tonnes Pb, 3,920 tonnes Zn. The cash cost per AuEq Oz was between $250-$290 and the AISC per AuEq Oz between $250-$290.
  • Magna Gold Corp. reported Q3 2021 production results. At San Francisco, in Sonora, 1.72 M tonnes were mined @ 0.46 gpt Au, and 4.52 M tonnes of waste moved (2.62 strip ratio), 1.76 M tonnes were processed @ 0.45 gpt Au, with 25,663 Oz Au placed in the pads to produce 19,102 Oz Au, 7,115 Oz Ag. The guidance for the year remains at 55-65 K Oz Au.
  • Aura Minerals Inc. announced preliminary production results for the third quarter of 2021, including figures from its Mexican operations. At Aranzazu, in Zacatecas, Aura produced 6,404 Oz Au, 106.1 K Oz Ag, 8.15 M Lb Cu, or 26,745 Oz AuEq.
  • Avino Silver & Gold Mines Ltd. released its production report for the third quarter 2021. The Avino mine in Durango successfully recommenced operations at a 1,000 to 1,500 tpd rate (with a 2,500 tpd plant capacity) with 58.2 K tonnes produced, 61,8 K tonnes processed (with aid of some stock piled material) grading 48 gpt Ag, 0.83 gpt Au, 0.58% Cu, recovering 86% Ag, 75% Au, 85% Cu to produce 77.9 K Oz Ag, 1,183 Oz Au, 685.5 K tonnes Cu.

ON FINANCING

  • Candelaria mining Corp. informed one of its lenders, Accendo Banco S.A. had its authorization to operate as a banking institution revoked by the Mexican National Banking and Securities Commission. “The Company has a US$9.0 million loan facility in place with Accendo and to date has drawn US$1.5 million under the loan facility. The Company anticipates that its ability to draw any further funds from its loan facility with Accendo may be impaired by these developments.” (Pinos, Zacatecas).
  • Xali Gold Corp. announced that Sun River Gold has arranged a financing of US$6.5 M to build an put in operation the tailings reprocessing operation at El Oro, Estado de México. “Sun River has the option to acquire 100% of the Tailings Project from Minera CCM by making staged payments totalling US$500,000 (paid), bring the tailings into commercial production by October 31, 2021 (extended to March 31, 2022 due to COVID), and grant to the Company a 5% NPI, Life of Mine royalty (the “Candente Royalty”) as well as the Municipality’s 8% NPI on production from the properties” (El dorado, Nayarit).

ON RESOURCES AND DEVELOPMENT

  • GR Silver Mining Ltd. filed a technical report on the Plomosas project, in Sinaloa. The report envisages 3.4 M Oz Ag, 53 K Oz Au, 73 M Lb Zn, 48 M Lb Pb (10.3 M Oz AgEq) in indicated resources and 8.6 M Oz Ag, 85 K Oz Au, 149 M Lb Zn, 116 M Lb Pb (21.0 M Oz AgEq) in inferred resources. The report includes information from over 100,000 meters of drilling in 476 historic and 80 new drill holes. A 14,000 meters drilling program with seven rigs is in progress.
  • Orla Mining Ltd. provided a construction update for the Camino Rojo Oxide project in Zacatecas. To date Camino Rojo is 89% complete with the ramp up of mining operations according to plan, and the crushing and conveying system, reclaim tunnel, overland conveyor and grasshopper conveyors completed. The Merrill-Crowe plant and refinery are 98% complete. In the year 757.1 K tonnes have been mined at a grade of 0.86 gpt Au, of which 511.2 K tonnes have been crushed and 220.2 K tonnes stacked.
  • Prime Mining Corp. informed on further drilling results from its Los Reyes project in Sinaloa. Highlighted true width (TW) intercepts comprise 11.8 m @ 6.12 gpt Au, 62 gpt Ag, (including 5.5 m @ 12.02 gpt Au, 61 gpt Ag); 13.1 m @ 3.36 gpt Au, 83 gpt Ag; 13.2 m @ 2.18 gpt Au, 31 gpt Ag; 8.4 m @ 2.85 gpt Au, 31 gpt Ag; 1.4 m @ 3.89 gpt Au, 13 gpt Ag in the Zapote South step out holes, and 3.8 m @ 14.51 gpt Au, 82 gpt Ag; 2.2 m @ 3.96 gpt Au, 9 gpt Ag; 2.1 m @ 5.55 gpt Au, 164 gpt Ag; 2.90 m @ 2.07 gpt Au, 248 gpt Ag; 3.9 m @ 1.90 gpt Au, 78 gpt Ag; 0.9 m @ 3.86 gpt Au, 448 gpt Ag; 4.0 m @ 1.55 gpt Au, 230 gpt Ag in the Tahonitas step out drilling. The boiling level at Zapote, with its corresponding higher grades, has been identified 50 m below previous reports, expanding the exploration targets.
  • Fabled Silver Gold Corp. released further assay results from its Santa Maria property in Chihuahua. The underground drilling was successful in intersecting a geochemically anomalous intrusive rock with a 54.6 m interval grading 0.02 gpt Au, 9 gpt Ag (including three intervals 1.5, 1.5 and 1.2 m in width grading 20, 21 and 23 gpt Ag respectively) and another hole returning 4.5 m @ 13 gpt Ag.
  • GoGold Resources Inc. reported results of 10 new holes from El Favor east zone, extending the mineralized strike by over 450 meters at its Los Ricos North project in Jalisco. Some of the core-length intervals intercepted comprise 27.0 m @ 0.44 gpt Au, 64 gpt Ag; 3.0 m @ 0.51 gpt Au, 86 gpt Ag; 22.3 m @ 0.31 gpt Au, 118 gpt Ag (including 1.0 m @ 3.96 gpt Au, 944 gpt Ag); 7.7 m @ 0.46 gpt Au, 147 gpt Ag; 24.2 m @ 0.45 gpt Au, 105 gpt Ag (including 2.0 m @ 4.16 gpt Au, 794 gpt Ag); 6.1 m @ 1.32 gpt Au, 328 gpt Ag; 2.1 m @ 0.63 gpt Au, 179 gpt Ag; 11.4 m @ 0.26 gpt Au, 136 gpt Ag (including 6.0 m @ 0.38 gpt Au, 179 gpt Ag); 20.1 m @ 0.22 gpt Au, 68 gpt Ag (including 1.0 m @ 2.59 gpt Au, 563 gpt Ag); 18.3 m @ 0.30 gpt Au, 98 gpt Ag (including 5.6 m @ 0.90 gpt Au, 255 gpt Ag). El Favor East mineralization is now known for 900 m, of which 600 m have been drilled.
  • Golden Tag Resources Ltd. announced the addition of 4,500 meters of diamond drilling to its exploration program for 2021 at its San Diego project in Durango. That meterage is in addition to the 4,716 meters already sunk and reported in 2021.   The program discovered epithermal mineralization near the surface, the following are some selected core-length intervals: 273.65 m @ 0.10 gpt Au, 43 gpt Ag, 0.2% Pb, 0.3% Zn (76 gpt AgEq); 50.17 m @ 0.05 gpt Au, 31 gpt Ag, 0.9% Pb, 0.7% Zn; 99.53 m @ 0.09 gpt Au, 27 gpt Ag, 0.7% Pb, 0.6% Zn; 25.55 m @ 0.08 gpt Au, 37 gpt Ag, 0.3% Pb, 0.6% Zn; 86.64 m @ 0.03 gpt Au, 39 gpt Ag, 0.9% Pb, 0.6% Zn; 169.83 m @ 0.04 gpt Au, 32 gpt Ag, 0.6% Pb, 0.8% Zn; 116.45 m @ 0.03 gpt Au, 42 gpt Ag, 0.6% Pb, 0.7% Zn; 134.37 m @ 0.13 gpt Au, 20 gpt Ag, 0.6% Pb, 0.7% Zn; 191.57 m @ 0.04 gpt Au, 35 gpt Ag, 0.8% Pb, 0.8% Zn.
  • Capitan Mining Inc. reported results form five reverse circulation (RC) drill holes at El Capitan, in Durango. Highlighted core length intervals comprise 6.1 m @ 0.15 gpt Au; 13.7 m @ 0.32 gpt Au; 44.2 m @ 0.13 gpt Au, 3 gpt Ag; 6.1 m @ 0.12 gpt Au, 5 gpt Ag; 10.7 m @ 0.12 gpt Au, 27.4 m @ 0.23 gpt Au; 62.5 m @ 0.38 gpt Au, 4 gpt Ag; 35.1 m @ 0.14 gpt Au; 21.3 m @ 0.19 gpt Au; 18.3 m @ 0.15 gpt Au; 6.1 m @ 0.29 gpt Au; 13.7 m @ 0.39 gpt Au, 4 gpt Ag; 85.3 m @ 0.16 gpt Au; 19.8 m @ 0.15 gpt Au, 4 gpt Ag.
  • Zacatecas Silver Corp. provided an update on the drilling program at Panuco, within its Zacatecas property in Zacatecas. Four drill holes were completed for a total of 1,088m at Panuco, while two more were completed at Las Cruces vein system and one more is ongoing. Results are pending.

ON DEALS AND CORPORATE ISSUES

  • Argonaut Gold Inc. has acquired key mineral concessions from Fresnillo PLC for a cash consideration of US$5.75 M. The acquired package comprises a 4,791-ha concession and four key small concessions totalling 27 ha, which will allow Argonaut to expand the pit, increase mineral reserves and extend mine life.

ON SOCIAL RESPONSIBILITY

  • Minera Media Luna informed on educational programs presented at communities in Guerrero.
  • Peñoles presented its company-wide water saving strategy on all its activities.
  • Newmont Peñasquito updated on activities with positive results in near-by communities.
  • Panamerican Silver informed on community health programs near its La Colorada mine in Zacatecas.

On the image below: Galena bearing milky quartz vein on a project in the Sonoran Desert. Picture by Jorge Cirett.