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

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Drill core displaying ginguro bands

By Miguel A Heredia

During the 48th week of the year (November 28th to December 04th, 2022), at least 20 press releases were announced by companies working in Mexico, and 7 news published by the media with seven reporting resources and developments of their properties, seven commenting on Mexican issues, five disclosing deals and corporate issues, three communicating production and financial results, three announcing financing issues, one informing on exploration results, and one discussing social issues. ON MEXICO ISSUES, Altos Hornos de Mexico assured that the power outage at its plants is an act of bad faith derived from charging millions of dollars to Federal Electricity Commission (CFE) for illegal cancellation of coal supply. The Secretariat of Economy identified 159 mining companies with foreign capital operating in 26 states of Mexico (mostly juniors and exploration) in 2021. According to the Mexican Mining Chamber (CAMIMEX), Newmont, Industrias Peñoles and Fresnillo operated the main zinc mines in Mexico in 2021. Maria Luisa Albores, the Secretary of the Environment and Natural Resources (SEMARNAT) informed deputies, in a very unfortunate statement, that the federal government will not grant more authorizations for open-pit mining due to the negative impacts on the environment and human health. Grupo Mexico maintained its position as the largest copper producer in Mexico, adding a total of 1.25 B Lb Cu in 2021.  Prime Mining, Aztec Minerals, GoGold, Vizsla, and Oroco reported the best drilling intercepts in Mexico on the first week of December, 2022. ON EXPLORATION, In Sonora, Aztec Minerals reported results for the last three holes from the recently completed phase 3 drill program at its Cervantes project. ON MINING, Bear Creek reported Q3, 2022 production and financial results from its Mercedes mine in Sonora. Guanajuato Silver reported Q3, 2022 production and financial results from their Mexican operations. Orogen reported Q3 operating and financial results. ON FINANCING, SilverCrest announced that it has refinanced its USD $120M secured project financing facility (Las Chispas project, Sonora). Prime Mining announced a CAD $16.5M bought deal private placement financing, the same that later on was upsized to CAD $18.3M (Los Reyes project, Sinaloa). ON RESOURCES AND DEVELOPMENT, Barksdale reported an initial Resource Estimate at Cerro Verde within its San Javier project, Sonora.  GoGold presented results from its ongoing drilling program at its Los Ricos South property in Jalisco. Oroco released results from seven holes collared in the North Zone at its Santo Tomas project in Sinaloa. Prime Mining announced results from seven holes from its recently completed phase 2 drill program at its Los Reyes project, Sinaloa. SilverCrest announced the completion and final permanent connection to power line for its Las Chispas mine in Sonora. Starcore released its Mineral Resource Estimate and NI 43-101 compliant technical report for its El Creston project in Sonora. Vizsla announced results from seven drill holes targeting the southern extension of the Napoleon Vein at its Panuco project in Sinaloa. ON DEALS AND CORPORATE ISSUES, Canuc signed a comprehensive agreement with the Ejido of San Javier, located in the Municipality of San Javier, Sonora. First Majestic announced the proposed sale of its royalty portfolio to Metalla Royalty for a total consideration of USD $20M. Kootenay announced the appointment of Dale Brittliffe as its new VP Exploration (Columba project, Chihuahua). Riverside received USD $2.5M in cash and 2% royalty from Fresnillo plc for the sale of the Tajitos project, Sonora. ON SOCIAL RESPONSIBILITY, Ricardo Sierra Oteiza, spokesman for the mining company Esperanza Silver de Mexico, stated that gold and silver mining is an activity that has the capacity to accelerate economic processes at the local level, generating employment, encouraging local supply networks, contributing tax revenue to the treasury and contributing to the social and economic development of the communities hosting mining projects, among other benefits.

ON MEXICO ISSUE

  • Altos Hornos de Mexico S.A.B. de C.V. (AHMSA), assured that the power outage at its plants is an act of bad faith derived from charging millions of dollars to Federal Electricity Commission (CFE) for illegal cancellation of coal supply. AHMSA is owned by Mexican businessman Alonso Ancira, who assured that CFE’s actions are unjustifiable because they represented the loss of 4,000 direct jobs and more than 8,000 indirect ones, in addition to having generated disorder in the general coal industry. “These aggressive actions began after the Judiciary accepted a claim for damages for USD $700M for the unilateral and illegal cancellation of the supply of coal for the two generating plants located in Nava, Coahuila,” accused the company. “AHMSA stated that the actions taken by the management of the CFE show that it does not care about harming Coahuila and the people of Coahuila, since our plants located in that entity represent a direct source of livelihood for 17,000 Coahuila families.
  • Karen Flores, General Director of the Mining Chamber of Mexico (CAMIMEX), declared that the Federal Government stops additionally collecting up to MXP $25 B after the suspension of mining concessions and the paralysis of new permits. She explained that the policy of President Andres Manuel Lopez Obrador has halted more than 800 mining projects that only await federal authorization to start operations. “If the projects that are stopped were to start up, we would be talking about MXP $20 to 25 B per year to the federal treasury,” she said. She maintained that only in terms of taxes, the industry entered the public coffers in 2021 more than MXP $60 B and in seven years, MXP $240 B, an amount that could be higher if there were no obstacles in the current legislation.
  • The Secretariat of Economy identified 159 mining companies with foreign capital operating in 26 states of Mexico (mostly juniors and exploration) in 2021. These companies operate 1,209 projects, of which 822 were halted and nine operations reported closing at the end of last year. The mining GDP in Mexico was MXP $865.2 B in 2021, a growth of 1.6% year-on-year, in real terms (based on GDP calculated in constant MXP $ with purchasing power as of December 31, 2013). For their part, mining-metallurgical exports amounted to USD $23,579M in 2021, a figure that meant an increase of 28.1% compared to the previous year. The significant increase in exports allowed that, despite the increase that was also reported in imports, an increase in the positive balance of the mining-metallurgical trade balance of 29.6% was registered and reached a value of USD $11,904M. The positive results in foreign trade in minerals consolidated the mining-metallurgical industry as the fifth source of foreign exchange, surpassing tourism and the agricultural sector, and only behind the automotive industry, the electrical and electronic equipment and machinery industry, remittances and oil exports. The mining sector presented an increase in the contribution to the National GDP, going from 2.3% in 2020 to 2.5% in 2021, and in the Industrial GDP the record went from 8.3% to 8.6% in the study period, according to data from the Mining Chamber of Mexico. Gold remained the main product of the national mining-metallurgical industry in 2021, with a share of 28.4% in the total value of production, followed by copper with 27.7% and silver with 20.4%.
  • According to the Mexican Mining Chamber (CAMIMEX), Newmont, Industrias Peñoles and Fresnillo operated the main zinc mines in Mexico in 2021. Peñasquito, owned by Newmont and located in the state of Zacatecas, leads the ranking, with 245.84K tonnes Zn, then follow two mines of Industrias Peñoles: Velardeña, Durango with 909.68K tonnes Zn, and Tizapa State of Mexico with 40.13K tonnes Zn. The table below shows the Zn production by mine for the year 2021:

The Buenavista Zinc project, in Sonora, is located within the Buenavista facilities and includes the development of a new concentrator to produce approximately 100K tonnes Zn and 20K tonnes Cu per year.

While the project has all the necessary permits, the project budget is USD $413M and is expected to start operations in 2023. As of December 31, 2021, Grupo México had invested USD $217M in this project. When completed, Grupo México anticipates that this new facility will double the company’s zinc production capacity and provide 490 direct and 1,470 indirect jobs. Other notable companies are: Gatos Silver, Minera Frisco and Gold Resource.

  • Maria Luisa Albores, the Secretary of the Environment and Natural Resources (SEMARNAT) informed deputies, in a very unfortunate statement, that the federal government will not grant more authorizations for open-pit mining due to the negative impacts on the environment and human health. When appearing before the joint commissions for the Environment and Natural Resources, and Climate Change and Sustainability of the Chamber of Deputies, the federal official also announced that mining concessions were detected in 68 Protected Natural Areas, “which contravenes the conservation and protection of the territory and its natural resources”. Opposition legislators such as the PAN members questioned the programs of this administration such as “Sembrando Vida”, pointing out that they do not have operating rules that allow their transparency and the energy transition has been aborted, in addition, environmental deforestation is not punished.
  • Grupo Mexico maintained its position as the largest copper producer in Mexico, adding a total of 559.83K tonnes Cu in 2021. The company maintains copper production operations in Sonora, Chihuahua, San Luis Potosí and Zacatecas. With this, the company registered a coverage of 76.3% of the national copper production in 2021. The table below shows the Cu production by mine during 2021:

Prime Mining Corp., Aztec Minerals Corp., GoGold Resources Inc., Vizsla Silver Corp., and Oroco Resources Corp., reported the best drilling intercepts in Mexico on the first week of December, 2022. Details are shown in the table below:

ON EXPLORATION

  • Aztec Minerals Corp., reported results for the last three holes from the recently completed phase 3 drill program at its Cervantes project in Sonora. The most significant drill intercept was encountered in hole CAL22-031, which was collared in the California Zone with 0.87 g/t Au over 28.5m, plus 0.58 g/t Au over 85.5m, including 2.3 g/t Au over 12m. “This drill hole confirms the footwall of the main California Zone mineralization at depth and fills a large gap in the drilling pattern”.

ON MINING

  • Bear Creek Mining Corporation reported Q3, 2022 production and financial results from its Mercedes mine in Sonora. The company mined 126,420 tonnes of 2.92 g/t Au and processed 148,211 tonnes of 2.45 g/t Au with a metallurgical recovery of 95.53% to produce 11,170 Oz Au. Bear Creek sold 14,445 Oz Au at a cash and all-in-sustaining cost per Oz Au sold of USD $995 and USD $1,364 respectively at a realized price of USD $1,729 per Oz Au. The company reported revenues of USD $26.54M from the sale of gold and silver; a net loss of USD $7.7M; cash and cash equivalents and short-term investments as September 30, 2022 for USD $9.6M. Bear Creek plans to mine approximately 600K tonnes of 3.7 g/t Au to produce between 60K and 73K Oz Au in 2023.
  • Guanajuato Silver Company Ltd., reported consolidated Q3, 2022 production and financial results from their Mexican operations (El Cubo and San Ignacio mines in Guanajuato, and Topia mine in Durango). The company mined 107,379 tonnes and milled 107,009 tonnes to produce 329.3K Oz Ag, 3,226 Oz Au, 537.6K Lb Pb, and 677.1 Lb Zn (700.3K Oz AgEq) at cash and all-in-sustaining cost of USD $13.86 and USD $19.53 per Oz AgEq respectively. It sold 311.7K Oz Ag, 2,997 Oz Au, 504.4K Lb Pb, and 273.3K Lb Zn (628.3K Oz AgEq). Guanajuato Silver reported revenue of USD $8.87M; cost of sales of USD $12.2M; mine operating loss of USD $3.34M; net loss of USD $8.4M; and cash on hand of USD $6.36M.
  • Orogen Royalties Inc., reported Q3 operating and financial results. The company reported a net gain from operations of CAD $123.4K or CAD $0.001 per share; revenue of CAD $1.16M from the Ermitaño royalty with 478 attributable Oz AuEq sold at average price of USD $1,728 per Oz Au; net income of CAD $203K from prospect generation activities and recognized  an impairment of CAD $262.1K for projects that have been dropped during the period; general and administrative expenses of CAD $802.1K and a loss of CAD $468K on fair value adjustments of marketable securities due to capital markets volatility. It also reported cash flow from operating activities of CAD $188.5K; cash flow from operating activities excluding changes in non-cash working capital of CAD $10.7M including CAD $3.3M in cash and cash equivalents, and CAD $5.2M in short term investments and no long-term debt.

ON FINANCING

  • SilverCrest Metal Inc., announced that it has refinanced its USD $120M secured project financing facility, of which only USD $90M was drawn with a new USD $120M senior secured credit facility through a syndicate of lenders comprised of The Bank of Nova Scotia and Bank of Montreal (Las Chispas project, Sonora).
  • Prime Mining Corp., announced a CAD $16.5M bought deal private placement financing consisting of 11M units at a price of CAD $1.5 per unit, the same that later on was upsized to CAD $18.3M for the sale of 12.2M units at a price of CAD $1.5 per unit. Gross proceeds will be used to develop and explore its Los Reyes project in Sinaloa and for general corporate purposes.

ON RESOURCES AND DEVELOPMENT

  • Barksdale Resources Corporation reported an initial Mineral Resource Estimate (MRE) at Cerro Verde within its San Javier project, Sonora. The Resource is pit-constrained and considered a base case of USD $4/Lb copper. The table below shows the MRE effective as of October 31, 2022:

Cerro Verde remains open for expansion in most directions and the Mesa Grande and La Trinidad prospects both have historic drilling that indicates the presence of copper mineralization. Barksdale plans to initiate a Preliminary Economic Assessment (PEA) at Cerro Verde that envisions a low-strip copper heap operation to produce cathode copper on site.

  • GoGold Resources Inc., presented results from its ongoing drilling program at its Los Ricos South property in Jalisco. Highlights of the drilling include hole LRGG-22-218 with 3.98 g/t Au and 529 g/t Ag (11.04 g/t AuEq or 828 g/t AgEq) over 15m, including 12.43 g/t Au and 1,626 g/t Ag (34.1 g/t AuEq or 2,558 g/t AgEq) over 4.8m, including 20.32 g/t Au and 2,774 g/t Ag (57.31 g/t AuEq or 4,298 g/t AgEq) over 2.8m, including 37.90 g/t Au and 4,250 g/t Ag (94.57 g/t AuEq or 7,093 g/t AgEq) over 0.9m. Drilling results continue to confirm high grade wide intercepts in the Main deposit on Los Ricos South property.
  • Oroco Resource Corp., released results from seven holes collared in the North Zone at its Santo Tomas project in Sinaloa. Highlights of the drilling include hole NO32 with 0.34% Cu, 0.005% Mo, 0.021 g/t Au, and 2 g/t Ag (0.37% CuEq) over 88.7m; hole NO34 with 0.34% Cu, 0.011% Mo, 0.029 g/t Au, and 3 g/t Ag (0.40% CuEq) over 267m; hole NO35 with 0.37% Cu, 0.006% Mo, 0.042 g/t Au, and 2 g/t Ag (0.42% CuEq) over 220.5m; and hole NO36 with 0.43% Cu, 0.002% Mo, 0.092 g/t Au, and 2 g/t Ag (0.51% CuEq) over 139.6m. “The company has now completed 43 drill holes (28,119 m of drilling) in its 2021-2022 North Zone drilling confirming  good grade mineralization along 1,700 m of strike, demonstrating a westward dipping panel with consistent grades down-dip to about 400-500 m depth below the ridge, bottoming about sea level. The program is nearing completion with the remainder of the program focused on expanding the shallow seated mineralized zone on the hanging wall along the south-west side of the Gradeshell with the continued goal of increasing the resource in this newly identified zone”.
  • Prime Mining Corp., announced results from seven holes from its recently completed phase 2 drill program at its Los Reyes project, Sinaloa. Highlights of the drilling include hole 22GE-118 with 3 g/t Au and 215 g/t Ag over a true width (TW)of 5.5m, including 6.8 g/t Au and 469 g/t Ag over a TW of 1m, plus 6.8 g/t Au and 166 g/t Ag over a TW of 18.3m, including 11.6 g/t Au and 262 g/t Ag over a TW of 9.1m, plus 4.8 g/t Au and 144 g/t Ag over a TW of 2.8m, plus 2.9 g/t Au and 89 g/t Ag over a TW of 7.2m, including 9.9 g/t Au and 231 g/t Ag over a TW of 1.4m, including 2.9 g/t Au and 101 g/t Ag over a TW of 7.2m, including 7 g/t Au and 327 g/t Ag over a TW of 1.4m, plus 2 g/t Au and 72 g/t Ag over a TW of 7.4m, including 2.8 g/t Au and 90 g/t Ag over a TW of 4.4m: hole 22GE-121 with 12.8 g/t Au and 646 g/t Ag over a TW of 1.1m, plus 4.2 g/t Au and 212 g/t Ag over a TW of 12.7m, including 10.2 g/t Au and 547 g/t Ag over a TW of 0.5m, plus 10.9 g/t Au and 765 g/t Ag over a TW of 0.4m, plus 21 g/t Au and 413 g/t Ag over a TW of 0.3m; hole 22GE-122 with 2.2 g/t Au and 54 g/t Ag over a TW of 13.8m, including 9.1 g/t Au and 141 g/t Ag over a TW of 1.1m, plus 8.8 g/t Au and 289 g/t Ag over a TW of 5.6m, including 33.2 g/t Au and 1,072 g/t Ag over a TW of 1.4m; and hole 22GE-120 with 6.8 g/t Au and 207 g/t Ag over a TW of 6.8m, including 12.2 g/t Au and 337 g/t Ag over a TW of 1.5m, plus 23 g/t Au and 495 g/t Ag over a TW of 0.9m, plus 3.5 g/t Au and 75 g/t Ag over 6.7m, including 11.3 g/t Au and 245 g/t Ag over a TW of 0.8m, plus 9.9 g/t Au and 149 g/t Ag over a TW of 0.8m.
  • SilverCrest Metals Inc., announced the completion and final permanent connection of its 33 kilovolt electrical power line for its Las Chispas mine in Sonora. The company also released its inaugural Task Force for Climate Related Financial Disclosure (TCFD) report and a corresponding Water Stewardship report based on conclusions from the TCFD report.
  • Starcore International Mines Ltd., released its pit-constraint Mineral Resource Estimate and NI 43-101 compliant technical report for its El Creston project in Sonora. Measured resources as of September 30, 2022 are 56.3M tonnes of 0.076% Mo and 0.04% Cu for a total of 94.3M Lb Mo and 49.7M Lb Cu and Indicated resources of 142.2M tonnes of 0.067% Mo and 0.08% Cu for a total of 210M Lb Mo and 250.8M Lb Cu. Measured + Indicated resources are 198.5M tonnes of 0.069% Mo and 0.07% Cu for a total of 304.4M Lb Mo and 300.5M Lb Cu.
  • Vizsla Silver Corp., announced results from seven drill holes targeting the southern extension of the Napoleon Vein at its Panuco project in Sinaloa. Highlights of the drilling include hole NP-22-320 with 279 g/t Au, 24.01 g/t Au, 1.8% Pb, and 7.6% Zn (2,305 g/t AgEq) over a TW of 1.55m, including 267 g/t Ag, 29.1 g/t Au, 1.3% Pb, and 7.2% Zn (2,631 g/t AgEq) over a TW of 1.18m, plus 113 g/t Ag, 0.69 g/t Au, 0.6% Pb, and 6.2% Zn (390 g/t AgEq) over a TW of 0.8m, plus 143 g/t Ag, 0.87 g/t Au, 0.6% Pb, and 3.7% Zn (344 g/t AgEq) over a TW of 0.45m; hole NP-22-329 with 886 g/t Ag, 7.44 g/t Au, 2.2% Pb, and 6.8% Zn (1,660 g/t AgEq) over a TW of 0.88m, plus 222 g/t Ag, 2.64 g/t Au, 0.3% Pb, and 1.2% Zn (446 g/t AgEq) over a TW of 6.70m, including 668 g/t Ag, 2.22 g/t Au, 0.5% Pb, and 2.3% Zn (875 g/t AgEq) over a TW of 0.78m, including 159 g/t Ag, 9.14 g/t Au, 0.1% Pb, and 0.2% Zn (815 g/t AgEq) over a TW of 0.78m; and hole NP-22-333 with 54 g/t Ag, 1.22 g/t Au, 0.3% Pb, and 1.6% Zn (203 g/t AgEq) over a TW of 2.1m, plus 378 g/t Ag, 2.53 g/t Au, 0.4% Pb, and 4.3% Zn (696 g/t AgEq) over a TW of 1.50m.

ON DEALS AND CORPORATE ISSUES

  • Canuc Resources Corporation signed a comprehensive agreement for a period of 10 years with rights for renewal for a further 10 year period thereafter, with the Ejido of San Javier, located in the Municipality of San Javier, Sonora. The Agreement covers the Company’s 27 currently held claims and is contemplated to cover any further claims the Company may acquire in the San Javier area. The Ejido leadership at San Javier requested assistance from Canuc to implement controls against disruptive artisanal mining activities taking place locally by artisanal miners who have come to San Javier, but who are not from the area.
  • First Majestic Silver Corp., announced the proposed sale of its royalty portfolio to Metalla Royalty & Streaming Ltd for a total consideration of USD $20M in common shares of Metalla. Total consideration consists of 4,168,056 Metalla shares at a deemed price of USD $4.7984 per share based on a 25-day volume-weighted average price on the NYSE American Exchange having an aggregate value of approximately USD $20.0M. The consideration will be paid upon Closing of the Transaction.
  • Kootenay Silver Inc., announced the appointment of Dale Brittliffe as its new VP Exploration (Columba project, Chihuahua).
  • Riverside Resources Inc., received USD $2.5M in cash and 2% NSR royalty from Fresnillo plc for the sale of the Tajitos project in Sonora. Fresnillo will have, for a four-year term, the option to buy back half of the 2.0% NSR for a payment of USD $1.5M. If enacted, then Fresnillo would have an additional three years to buy back the remaining 1% NSR for another USD $1.5M. If Fresnillo does not exercise its first buy back option during the first four-year term, the Royalty will no longer be subject to any buy back provisions. The NSR covers the entire Riverside land package and a full NSR Agreement has been agreed upon and included in the signed contract between the companies. If Fresnillo wishes to reduce mineral claims, then the Company has the first right to retain those mineral tenures before they are dropped.

ON SOCIAL RESPONSIBILITY

  • Ricardo Sierra Oteiza, spokesman for the mining company Esperanza Silver de México, stated that gold and silver mining is an activity that has the capacity to accelerate economic processes at the local level, generating employment, encouraging local supply networks, contributing tax revenue to the treasury and contributing to the social and economic development of the communities hosting mining projects, among other benefits. In the case of the state of Morelos, in the community of San Agustín Tetlama in the municipality of Temixco, the company Esperanza Silver de México carries out scientific and technical prospecting and exploration studies to prepare the Environmental Impact Statement in search of the due authorizations from the federal government, so that, where appropriate, start the construction phase. If this mining project is consolidated, the Morelos community of San Agustín Tetlama would be expected to become a pole of economic and social development that joins the economic reactivation actions promoted by the government of the state of Morelos and the federal government.

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, drill core displaying ginguro texture in a banded quartz vein from an intermediate sulphidation epithermal vein system in a project in Zacatecas, Mexico.  Photo by Miguel A Heredia.

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

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Cockade texture

By Miguel A Heredia

During the 42nd week of the year (October 17th to October 23th, 2022), at least 15 press releases were announced by companies working in Mexico, and 4 news published by the media with six communicating production and financial issues, four reporting resources and developments of their properties, four commenting on Mexican issues, two announcing financing issues, one discussing social issues, one discussing deals and corporate issues, and one informing on exploration results. ON MEXICO ISSUES, Hermosillo, the capital city of the Sonora State, hosted the 14th International Mining Congress in October 18-21, 2022 with the participation of over 5,000 people. The Mexican Mining Chamber (CAMIMEX) warned that thefts of output and goods like explosives in the mining industry continue to increase despite the support provided by the Secretary of National Defense (SEDENA). According to data from the Ministry of Economy, the Mining Chamber of Mexico (Camimex) and experts, there is a mining collapse in Mexico since 822 mining projects were postponed, 180 foreign capital firms have left the country and there are 25 concessions stopped. GoGold and GR Silver reported the best drilling intercepts in Mexico on the third week of October, 2022. ON EXPLORATION, In Sinaloa, Prismo provided an update on its ongoing drill program conducted at its Palos Verdes project located in the historic Panuco-Copala mining district.  ON MINING, Avino, Santacruz, Golden Minerals, American Gold and Silver, and First Majestic reported Q3, 2022 production results from their Mexican mining operations, while Guanajuato Silver announced that it has recommenced mining at its Valenciana Mines Complex in Guanajuato, and provided a 6-month production estimate. ON FINANCING, Sierra Metals announced that it has commenced a process to evaluate and consider the company´s current financial and liquidity position, operational challenges and possible financing and restructuring alternatives that may be available to the company. Barksdale closed the final tranche of its previously announced non-brokered private placement for gross proceeds of $264K, and completed an extension of financial instruments (San Javier project in Sonora).  ON RESOURCES AND DEVELOPMENT, Avino announced that the installation and commissioning of the dry-stack tailings at its Avino mine in Durango has been completed. GoGold reported the acquisition of the 1,107 Ha Eagle concession covering the northern strike of the Main Deposit on the Los Ricos South property in Jalisco. Equinox released an updated feasibility study (FS) for its Los Filos mine expansion located in Guerrero State. GR Silver presented drilling results and announced the extension of the SE Area Silver Discovery at its Plomosas deposit in Sinaloa. ON DEALS AND CORPORATE ISSUES, Avinois conducting community agreements in the nearby towns adjacent to its la Preciosa property in Durango as it is committed to moving this project forward as part of the company´s 5-year growth strategy. ON SOCIAL RESPONSIBILITY, Industrias Peñoles and Fresnillo plc mining companies reiterated their commitment in saving and energy efficiency to continue implementing actions that contribute to the fight against global warming in order to build the mining of the 21st century.

ON MEXICO ISSUES

  • Hermosillo, the capital city of the Sonora State, hosted the 14th International Mining Congress during October 18-21, 2022, with the participation of over 5,000 people.
  • The Mexican Mining Chamber (CAMIMEX) warned that thefts of output and goods like explosives in the mining industry continue to increase despite the support provided by the Secretary of National Defense (SEDENA). The General Director of CAMIMEX, Karen Flores, said that thefts remain a recurrent issue in the sector and highlighted that these crimes are probably perpetrated by organized crime.
  • According to data from the Ministry of Economy, the Mining Chamber of Mexico (Camimex) and experts, there is a mining collapse in Mexico since 822 mining projects were postponed, 180 foreign capital firms have left the country and there are 25 concessions stopped. If the policy were to change, 30% more jobs would be created and the contribution to Mexico’s GDP would increase by 0.5%, according to estimates. Mining and metallurgical activity exceeded tourism by 19% in foreign exchange generation. The president of the Association of Mining Engineers, Metallurgists and Geologists of Mexico (AIMMGM), indicated that the uncertainty generated by this administration in the sector has caused a slowdown, which has left investments far from the more than USD $8 billion that were reached in previous years. GoGold Resources Inc., and GR Silver Mining Ltd., reported the best drilling intercepts in Mexico on the third week of October, 2022. Details are shown in the table below:

ON EXPLORATION

  • Prismo Metals Inc., provided an update on its ongoing drill program conducted at its Palos Verdes project located in the historic Panuco-Copala mining district in the state of Sinaloa. A total of 1,203m in 4 holes have been drilled to date out of a planned minimum of 2,000m. Drilling has intersected wide structural zones at depth where the Palos Verdes vein is branching into several strands measuring from about 0.5m to 9m in width in andesitic rocks. Core sampling is being completed on the entire structural zone including wall rock with veinlets. Assay results are expected to arrive in early November, 2022.

ON MINING

  • Avino Silver & Gold Mines Ltd., reported Q3, 2022 production results from its Avino mine in Durango. The company milled 162.1K tonnes of 59 g/t Ag, 0.31 g/t Au, and 0.66% Cu with metallurgical recoveries of 92%, 74%, and 89% respectively to produce 285.4K Oz Ag, 1.2K Oz Au and 2.1M Lb Cu (778K Oz AgEq).
  • Santacruz Silver Mining Ltd., announced Q3, 2022 production results from its Zimapan mine in Hidalgo. It milled 215,765 tonnes of 79 g/t Ag, 2% Zn, 0.7% Pb, and 0.39% Cu to produce 368.6K Oz Ag, 6.8M Lb Zn, 2.6M Lb Pb, and 1.4M Lb Cu (988.6K Oz AgEq).
  • Guanajuato Silver Company Ltd., has recommenced mining at its Valenciana Mines Complex (VMC) in Guanajuato. Cut & fill mining of high-grade epithermal veins at Valenciana is currently focused on the Los Pozos mine area where several mineralized blocks had been previously defined. Mineralized material from Valenciana is currently being transported to El Cubo for processing. The company expects to mine 5,000 tonnes per month at Valenciana throughout the remainder of 2022. “The Cata processing facility is centrally located within the Valenciana Mines Complex and has a production capacity of 36,000 tonnes per month. In November 2021 Cata was placed on care & maintenance by its previous owner. Guanajuato Silver had initially anticipated restarting the Cata mill in 2023, but with the rapid recommencement of mining at San Ignacio and the VMC, the company now expects to restart mineral processing at Cata before the end of 2022. The company also provided a 6-month production estimate. Guanajuato Silver expects to mine 125K-140K tonnes in Q4, 2022 to produce over 760K-985K and over 140K-160K tonnes in Q1, 2023 to produce over 910K-1.15M Oz AgEq.
  • Golden Minerals Company announced Q3, 2022 production and financial results from its Rodeo mine in Durango. The company mined 192,545 tonnes and reported that 23,618 tonnes were placed in stockpiles awaiting processing and 121,202 tonnes were placed in low grade stockpiles. Golden processed  47,947 tonnes of 2.6 g/t Au and 10 g/t Ag with metallurgical recoveries of 74.6% and 77.6% respectively., to produce 2,972 payable Oz Au in Dore and 11,907 payable Oz Ag in Dore (3,103 payable Oz AuEq in Dore). The company sold 3,108 Oz Au and 11,609 Oz Ag (3,145 Oz AuEq) at an average realized price before refining and selling costs of USD $1,703.10 per Oz Au and USD $18.72 per Oz Ag.
  • Americas Gold and Silver Corporation reported Q3, 2022 production results from its Cosalá operations in Sinaloa. It produced 186K Oz Ag, 3.8M Lb Pb, and 9.4M Lb Zn and announced that silver production from the Cosalá operations for the full year 2022 is expected to be at the lower end of the projected range of 0.7-0.9M Oz Ag, while zinc and lead production are expected to be towards the upper end of the projected ranges of 36 to 40M Lb Zn and 13 to 15M Lb Pb.
  • First Majestic Silver Corp., reported Q3, 2022 production results from their Mexican Mining operations (San Dimas in Durango, Santa Elena in Sonora, and La Encantada in Coahuila). Figures by mine are shown in the table below:

ON FINANCING

  • Sierra Metals Inc., announced that it has commenced a process to evaluate and consider the company´s current financial and liquidity position, operational challenges and possible financing and restructuring alternatives that may be available to the company. “The company faces liquidity challenges as a result of the recent previously announced suspension of operations at the Yauricocha Mine in Peru, and operating losses and negative cash flows that have accumulated, primarily from the Bolivar and Cusi operations in Mexico”. 
  • Barksdale Resources Corp., closed the final tranche of its previously announced non-brokered private placement with Teck Resources Limited for gross proceeds of $264K. The net proceeds will be used for general corporate and working capital purposes. Barksdale also completed an extension of the maturity date of the secured convertible debentures administered by Delbrook Capital Advisors Inc. by one year until December31, 2023. The debentures have a remaining principal amount of $1.5M and all other terms of the debentures remain unchanged except for the conversion price, which has increased to $0.55 per share from $0.45 per share (San Javier project in Sonora).

ON RESOURCES AND DEVELOPMENT

  • Avino Silver & Gold Mines Ltd., announced that the installation and commissioning of the dry-stack tailings at its Avino mine in Durango has been completed. The company chose dry-stack tailings for its environmental, safety and economic advantages, as well as because it reduces the need to extract water from local sources by recycling the water removed from tailings.
  • GoGold Resources Inc., reported the acquisition of the 1,107 Ha Eagle concession covering the northern strike of the Main Deposit on the Los Ricos South property in Jalisco by USD $2.1M to be paid over 4 years. As a result of this acquisition, all of the concessions in Los Ricos South are now contiguous. “This offers the potential for an additional bulk tonnage target in Los Ricos South, with continuity from the Main Area and Eagle”.
  • Equinox Gold Corp., released an updated feasibility study (FS) for its Los Filos mine expansion located in Guerrero State. Highlights of the FS include an after-tax NVP at  5% discount rate of USD $625M at base case of USD $1,675 per Oz Au; after-tax IRR of 26% at USD $1,675 per Oz Au; 5.4M Oz Au of Proven + Probable Mineral Reserves with grades of 0.65 g/t Au for open pit ore material and 3.94 g/t Au for underground ore material (average grade of 0.86 g/t Au); 7.9M Oz Au of Measured and Indicated Resources (exclusive of Reserves) with grades of 0.71 g/t Au for open pit ore material and 3.65 g/t Au for underground ore material (average grade of 0.75 g/t Au); 3.97M Oz life-of-mine (LOM) Au production, with  360K Oz peak average annual gold production (2025-2030), 280K Oz average annual gold production LOM (2023-2036), 1.22M Oz Au produced from the heap leach with average recovery of 55%, 2.75M Oz Au produced from the CIL plant with average recovery of 88%; 11.83M Oz LOM silver production; USD $993M after-tax LOM cumulative net cash flow; USD $981/ Oz average LOM cash cost; USD $1,081/Oz average LOM AISC; USD $318M initial capital cost to build the CIL plant and associated infrastructure; and 14.5-year mine life with extension potential from Mineral Resources conversion and exploitation success.
  • GR Silver Mining Ltd., presented drilling results and announced the extension of the SE Area Silver Discovery at its Plomosas deposit in Sinaloa. Drilling highlights include hole SMS22-16 which identified a wide hydrothermal breccia and stockwork system with multiple high grade Ag intervals such as 112 g/t Ag, 0.06 g/t Au, and 0.1% Zn over 123.1m, including 289 g/t Ag, 0.05 g/t Au, and 0.1% Zn over 13.1m, including 4,680 g/t Ag, 0.57 g/t Au, 0.1% Pb, and 0.1% Zn over 0.4m, and 250 g/t Ag, 0.1 g/t Au, 0.1% Pb, and 0.3% Zn over 27.3m, including 1,351 g/t Ag, 0.3 g/t Au, 0.1% Pb, and 0.2% Zn over 0.3m, and 635 g/t Ag, 0.08 g/t Au, 0.2% Pb, and 0.3% Zn over 6.4m, including 2,203 g/t Ag, 0.17 g/t Au, 0.8% Pb, and 1.4% Zn over 0.5m, and 102 g/t Ag and 2.6 g/t Au over 1.5m; and hole SMS22-14 with 23 g/t Au and 0.06 g/t Au over 10.5m, and 118 g/t Ag, 0.02 g/t Au, and 0.1% Zn over 3.5m, including 1,790 g/t Ag, 0.03 g/t Au, 0.7% Pb, and 2.9% Zn over 0.2m, and 22 g/t Ag, 0.08 g/t Au over 10.9m. The drilling program continues at the SE Area to define the geometry and lateral extents of the mineralization. “The occurrence of Ag anomalous zones on surface along the 1.5km target contact, further SE from the SE Area, provides new targets for the company to continue drilling, aimed at expanding the footprint of mineralization and potentially for incorporation into the planned resource estimation update in Q1, 2023”.

ON DEALS AND CORPORATE ISSUES

  • Avino Silver & Gold Mines Ltd is conducting community agreements in the nearby towns adjacent to its la Preciosa property in Durango as it is committed to moving this project forward as part of the company´s 5-year growth strategy.

ON SOCIAL RESPONSIBILITY

  • Industrias Peñoles S.A.B. de C.V. and Fresnillo plc mining companies reiterated their commitment in saving and energy efficiency to continue implementing actions that contribute to the fight against global warming in order to build the mining of the 21st century. In accordance with their sustainable development policies, both companies have programs to reduce greenhouse gas emissions, such as those from transportation, for which they implemented a strategy to save energy and use clean sources. Peñoles and Fresnillo plc are committed to caring for the environment and seek to achieve, in the near future, the objective of zero significant environmental impacts.

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, cockade texture from a low-sulphidation epithermal Au-Ag vein system in a project in Sinaloa, Mexico.  Photo by Miguel A Heredia.

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

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Grossular garnet exo skarn.

By Miguel A Heredia

During the 38th week of the year (September 19th to September 25th, 2022), at least 12 press releases were announced by companies working in Mexico, and 3 news published by the media with four informing on exploration results, four reporting resources and developments of their properties, four commenting on Mexican issues, two announcing financing issues, and one discussing social issues. ON MEXICO ISSUES, Enrique Zorrilla, president of the Canadian Chamber of Commerce in Mexico stated that Canada has its eyes fixed on Mexico as an investment destination for its mining companies, mainly in exploration expenses to find new gold deposits. According to a recent report by the Ministry of Finance, Mexico values ​​its lithium deposits in Sonora at USD $602,000M. In Mexico, only 33% of mines have access to a computer with an Internet connection to reduce accidents. On a striking difference with last week news releases, only Vizsla Silver Corp., posted drilling results in Mexico on the fourth week of September, 2022. ON EXPLORATION, In Sonora, Tocvan and its JV partner Colibri announced the next steps to be conducted at both the Pilar and the El Picacho projects. In Sinaloa, Prismo provided an update of its ongoing drilling program being conducted at its Palos Verdes project. In Durango, Regency entered into an option agreement to acquire a 100% undivided interest in the El Tablon claims.  ON MINING, no relevant news. ON FINANCING, Tocvan announced that it has filed to extend the expiration date of 1,244,668 common share purchase warrants by six months (The Pilar project, Sonora). Barksdale closed a non-brokered private placement for gross proceeds of $2M and issued a total of 4,622,917 units at a price of $0.48 per Unit for gross proceeds of $2.22 (San Javier project, Sonora). ON RESOURCES AND DEVELOPMENT, Oroco announced the commencement of a Preliminary Economic Assessment (PEA) for its Santo Tomas project in Sinaloa.  Galore provided an update on the exploitation activities carried out at its Duraznillo mine in Zacatecas. Golden Tag reported positive metallurgical results from the Fernandez Zone at its San Diego project, Durango. Vizsla reported results from 13 new drill holes targeting the Cruz Negra Vein located in the western portion of its Panuco project in Sinaloa.  ON DEALS AND CORPORATE ISSUES, no relevant news. ON SOCIAL RESPONSIBILITY, Almaden signed new and expanded cooperation agreements with the two communities closest to its Ixtaca project, Puebla.

ON MEXICO ISSUE

  • Enrique Zorrilla, president of the Canadian Chamber of Commerce in Mexico stated that Canada has its eyes fixed on Mexico as an investment destination for its mining companies, mainly in exploration expenses to find new gold deposits. He declared that 35% of the capital invested by that country goes to the mining sector.
  • According to a recent report by the Ministry of Finance, Mexico values ​​its lithium deposits in Sonora at USD $602,000M. Although Mexico does not currently produce the metal, the finance ministry estimated that Sonora’s reserves could add about 0.3% to potential GDP in the medium term. While the ultra light white metal is usually extracted from rock or brine deposits, lithium in Sonora is mostly trapped in clays, from which it has not yet been extracted on a commercial scale.
  • In Mexico, only 33% of mines have access to a computer with an Internet connection to reduce accidents. Ericsson revealed that the use of tools such as telemetry, satellite geolocation, wireless sensors and remote operation help improve mining operations, because with them and with the speed of the 5G network, information can be obtained practically in real time.
  • On a striking difference with last week news releases, only Vizsla Silver Corp., posted drilling results in Mexico on the fourth week of September, 2022. Details are shown in the table below:

ON EXPLORATION

  • Tocvan Ventures Corp., and its JV partner Colibri Resources Corporation announced the next step to be conducted at both the Pilar and the El Picacho projects in Sonora. At the El Picacho, Tocvan plans to initiate a maiden drill program targeting the San Ramon prospect. The plan for the Pilar is to commence bulk sampling of trench material to be processed in a local heap leach facility; to complete 2,000m of infill drilling and 3,000m of step-out and exploration drilling; to proceed with the permitting and development requirements for establishing a bulk test mine on-site; and to update the technical report.
  • Prismo Metals Inc., provided an update of its ongoing drilling program being conducted at its Palos Verdes project, Sinaloa. The Company has drilled approximately 560m in two core holes of a planned minimum of 2,000m drill program, with the second hole currently in progress. Both holes have intersected several vein structures. Palos Verdes project is contiguous to the Panuco silver-gold project of Vizsla Silver Corp.
  • Regency Silver Corp., entered into an option agreement to acquire a 100% undivided interest in the El Tablon claims located only 26km from the historical Tayoltita mining district in the state of Durango. The property covers a total of 7,200 hectares and contains numerous artisanal workings and tunnels, which explored many of the veins and veinlets that exist within the concession area. In order to exercise the option, Regency Silver must pay USD $50K on receipt of exchange acceptance, issue a total of 1M common shares and pay back taxes and mining filings on or before March 31, 2024. Regency Silver must also pay a USD $1M bonus upon a NI 43-101 resource being published, which estimates the El Tablon Claims contain a minimum of 70M Oz AgEq or M Oz Au in the measured or indicated categories.

ON MINING

  • No relevant news.

ON FINANCING

  • Tocvan Ventures Corp., announced that it has filed to extend the expiration date of 1,244,668 common share purchase warrants by six months. The Warrants are exercisable into common shares of the Company at a price of $0.75 per common share. The Warrants were issued pursuant to a non-brokered private placement of 1,244,668 units at a price of $0.60 on March 30, 2021. The Warrants were set to expire September 30, 2022 and will have an amended expiry date of March 31, 2023. All other terms and conditions of the Warrants, including the exercise price, remain the same (The Pilar project, Sonora).
  • Barksdale Resources Corp., closed a non-brokered private placement for gross proceeds of $2M and issued a total of 4,622,917 units at a price of $0.48 per Unit for gross proceeds of $2,219,000. The net proceeds from the offering will be used to advance the company’s mineral projects and for general corporate and working capital purposes (San Javier project, Sonora).

ON RESOURCES AND DEVELOPMENT

  • Oroco Resource Corp., announced the commencement of a Preliminary Economic Assessment (PEA) for the North and South Zones of its Santo Tomas project in Sinaloa. Additionally, the company mobilized two rigs more to the project, bringing to six the total number of drills conducting infill and step-out drilling in the North Zone and South Zone.
  • Galore Resources Inc., provided an update on the exploitation activities carried out at its Duraznillo mine in Zacatecas. “Immediately following the execution of the Exploitation Agreement with Oztoc Metals Corporation and the successful removal of the former tenant, Oztoc’s team has been evaluating and remediating the Duraznillo mine site. After conducting several processing trials, Oztoc determined that in order to achieve better production levels, a new and much improved processing system needed to be installed. Oztoc has purchased this equipment and is awaiting its arrival to begin operations, which should take place within the next two to three months”.
  • Golden Tag Resources Ltd., reported positive metallurgical results from the Fernandez Zone at its San Diego project, Durango. According to the metallurgical results, the endoskarn mineralization found at the Fernandez Zone is amenable to conventional flotation techniques; 76% of the Ag and 84% of the Pb were recovered to a bulk concentrate containing 51% Pb, 4700 g/t Ag, 3.11% Zn, 5.27% Cu, and 2.23 g/t Au; Cu and Au recoveries within the bulk concentrate had significant improvements over previous test work; and 84% of the zinc was recovered to a concentrate grading 47% zinc.
  • Vizsla Silver Corp., reported results from 13 new drill holes targeting the Cruz Negra Vein located in the western portion of its Panuco project in Sinaloa.  Drilling highlights include hole NP-22-274 with 413 g/t Ag, 1.99 g/t Au, 0.2% Pb, and 0.3% Zn (541 g/t AgEq) over a true width (TW) of 2.09m, including 2,490 g/t Ag, 2.85 g/t Au, 0.6% Pb, and 0.9% Zn (3,287 g/t AgEq) over a TW of 0.26m, plus 258 g/t Ag, 1.54 g/t Au, 0.01% Pb, and 0.2% Zn (357 g/t AgEq) over a TW of 0.88m;  hole NP-22-262 with 289 g/t Ag, 2.38 g/t Au, 0.8% Pb, and 0.7% Zn (486 g/t AgEq) over a TW of 0.65m, including 741 g/t Ag, 5.88 g/t Au, 0.3% Pb, and 1.3% Zn (1,165 g/t AgEq) over a  TW of 0.20m, plus 168 g/t Ag, 16.42 g/t Au, 0.9% Pb, and 3.3% Zn (1,476 g/t AgEq) over a TW of 0.65m, including 181 g/t Ag, 19.70 g/t Au, 1.1% Pb, and 3.8% Zn (1,748 g/t AgEq) over a TW of 0.46m; hole NP-22-290 with 76 g/t Ag, 2.6 g/t Au, 0.6% Pb, and 6.2% Zn (491 g/t AgEq) over a TW of 2.85m; hole NP-22-293 with 481 g/t Ag, 1.2 g/t Au, 0.02% Pb, and 0.02% Zn (535 g/t AgEq) over a TW of 0.76m; and hole NP-22-298 with 297 g/t Ag, 1.78 g/t Au, 0.3% Pb, and 1.2% Zn (456 g/t AgEq) over a TW of 1.60m. Vizsla also reported that it acquired a new claim that connect the northwest and southeast extents of Cruz Negra which are situated on pre-existing Vizsla claims and represent approximately 400m of new potentially mineralized vein strike to explore.

ON DEALS AND CORPORATE ISSUES

  • No relevant news.

ON SOCIAL RESPONSIBILITY

  • Almaden Minerals Ltd., signed new and expanded cooperation agreements with the communities of Zacatepec and Santa Maria Zotoltepec, the two communities closest to its Ixtaca project, Puebla. “These agreements set out the terms of the Company’s continued support of local communities’ human right to water through the immediate improvement of local water infrastructure, and establish a basis for longer term cooperation, once the Ixtaca project is permitted. In Zacatepec, the Company has reaffirmed its agreement with the “Irrigation Group of Small Producers from Zacatepec A.C.” to construct an agricultural water reservoir and related pumping and drip irrigation system to support local farming. In Santa María Zotoltepec, the Company has signed an agreement with the “United Ejidatarios for the Sustainable Development of Santa María Zotoltepec, A.C.” in which the Company will make an immediate contribution in order to support the construction of a similar agricultural reservoir and pumping and drip irrigation system with similar characteristics to the one built at Zacatepec, and ongoing contributions to support an agro-technological package aimed at sustainable plant nutrition and soil enrichment”.

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 grossular garnet exo skarn in a prospect in Tamaulipas, Mexico.  Photo by Miguel A Heredia.

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

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Quartz vein displaying boiling texture.

By Miguel A Heredia

During the 34th week of the year (August 22nd to August 28th, 2022), at least 16 press releases were announced by companies working in Mexico, and 7 news published by the media with seven commenting on Mexican issues, four communicating production and financial results, four disclosing deals and corporate issues, three reporting resources and developments of their properties, three announcing financial issues, and two informing on exploration results. ON MEXICO ISSUES, Colibri and Oroco reported the best drilling intercepts in Mexico on the fourth week of August, 2022. The government of Mexico announced, through a decree in the Official Gazette of the Federation, the creation of the state company Litio para Mexico (LitioMx). According to the Mining Chamber of Mexico (CAMIMEX), a total of 822 mining projects remain on hold and represent an amount of USD $959M.   Jaime Gutierrez Núñez, president of CAMIMEX stated that small-scale coal mining is like “the blood diamonds” of Africa. Mexico’s mining industry plans to invest USD $5.5B in 2022, 15.2% more than in 2021. Mining in Mexico grew by 7.1% in 2021 despite friction with the government. The governor of Durango, José Rosas Aispuro, considered unfair that the mining-metallurgical sector is one of the economic sectors with the highest tax burden in the country. In Mexico there are more than 1,209 mining projects that have been developed in 26 states of the Republic.  ON EXPLORATION, In Sonora, Colibri reported results from the second half of its Phase 1 drill program completed on its Evelyn project, and Tocvan announced latest drill results from its Pilar project.  ON MINING, Guanajuato Silver, Discovery Silver, Minera Alamos, and Orogen reported Q2, 2022 production and financial results from their Mexican operations. ON FINANCING, Canasil announced a non-brokered private placement for gross proceeds of up to $550K (Nora project, Durango). Minera Alamos arranged a USD $3M working capital facility and announced a closed a USD $4.35M equity raise (Cerro de Oro project, Zacatecas). Eric Sprott announced holdings in Orex Minerals Inc. ON RESOURCES AND DEVELOPMENT, Discovery Silver reported Q2, 2022 results from its flagship Cordero project, Chihuahua.  Minera Alamos provided an update on its Cerro de Oro project, Zacatecas. Oroco successfully tested the western side of the North Zone at its Santo Tomas project in Sinaloa.  ON DEALS AND CORPORATE ISSUES, Monumental announced that its common shares are now trading on the OTCQB Venture Market under the symbol MNMRF (Jemi project, Coahuila). Argonaut announced the appointment of its Vice President, Canadian Operations (La Colorada mine, Sonora).  Aztec purchased 35% interest in the Cervantes property in Sonora from Kootenay. Colibri announced reinstatement of trading on the TSX Venture Exchange and the appointment of its CFO.  ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUE

  • Colibri Resource Corporation and Oroco Resource Corp., reported the best drilling intercepts in Mexico on the fourth week of August, 2022. Details are shown in the table below:
·        The government of Mexico announced, through a decree in the Official Gazette of the Federation, the creation of the state company Litio para Mexico (LitioMx). The Government of Mexico created LitioMx as a decentralized public organism of the Federal Public Administration and coordinated by the Ministry of Energy, with its own legal personality and assets and with technical, operational and management autonomy. The objective of LitioMx will be the exploration, exploitation, benefit and use of lithium, located in national territory, as well as the administration and control of the economic value chains of such mineral.
·        According to the Mining Chamber of Mexico (CAMIMEX), a total of 822 mining projects remain on hold and represent an amount of USD $959M, which are still waiting for better conditions to be able to reactivate. Jaime Núñez, president of CAMIMEX stated that is essential to encourage exploration since unfortunately in the last seven years we have seen a decrease in investments in exploration, leaving several projects on standby.
·        Jaime Gutierrez Núñez, president of CAMIMEX stated that small-scale coal mining is like “the blood diamonds” of Africa, and that the Federal Electricity Commission (CFE) should certify where the mineral it buys comes from and its conditions.
·        Mexico’s mining industry plans to invest USD $5.5B in 2022, 15.2% more than in 2021, but according to the Mexican Mining Chamber (CAMIMEX), it will remain below the record figure of USD $8.04B seen in 2012 amid difficult conditions. Growing security problems, a high tax burden and the government’s decision to stop granting concessions for projects have prevented investments in the sector from increasing faster, said CAMIMEX head Jaime Gutiérrez.
·        Mining in Mexico grew by 7.1% in 2021 despite friction with the government. According to CAMIMEX’s annual report, this increase positioned it as the only productive activity that recovered and even exceeded the fall of 2020, when the covid-19 pandemic initially stopped its operations because the government did not consider it “essential activity”. Even without tax incentives, the mining sector presented an increase in its contribution to the gross domestic product (GDP) going from 2.3% in 2020 to 2.5% in 2021, and an annual advance in the proportion of industrial GDP from 8.3% to 8.6% in the same period.
·        The Governor of Durango, José Rosas Aispuro, considered unfair that the mining-metallurgical sector is one of the economic sectors with the highest tax burden in the country, even though it is an enabler that prevents the migration of people in the communities where it develops its production processes, for job creation and social benefits. Mining Entrepreneurs stated that mining generates jobs and is one of the industries that pays the most taxes, since in 7 years it has contributed more than MXP $240,000M (approximately USD $12B) in taxes and other rights.
·        In Mexico there are more than 1,209 mining projects that have been developed in 26 states of the Republic, in which 406,179 jobs have been generated and a production value that already exceeds MXP $334,782M (approximately USD $16.7B). Among the main minerals extracted from these deposits are gold, copper, silver, zinc, iron, molybdenum, lead, fluorite, among others. For its exploration and exploitation, in 2021 alone, investments have been made for more than USD $4,810M and more than USD $5,538M are expected by the end of 2022. Of the 1,209 mining projects that exist in Mexico, 286 are in Sonora, Chihuahua has 160 and Durango has 128, which positions them as the entities with the greatest economic benefit thanks to mining concessions. Of the total number of projects, 749 correspond to precious metals; 180 to polymetallic minerals, 167 to copper, 71 to iron ore and the remaining 42 to other metals and minerals. According to the Mexican Mining Chamber (CAMIMEX), there are currently a total of 263 projects in the exploration stage, 76 in production, 39 in the development stage, while 822 projects are being postponed and 9 operations are reported as closed. However, the agency assures that, since the start of the current administration, the federal government has stopped granting permits or concessions for the exploration and development of new projects, since so far more than USD $959.7M dollars have not been invested. .
ON EXPLORATION
·        Colibri Resource Corporation reported results from the second half of its Phase 1 drill program completed on its Evelyn project, Sonora, and included 3,101m of RC drilling completed in 22 holes. In total, Phase 1 consisted of 6,223m of RC drilling in 42 holes.  Highlights include hole EVE22-042 with 0.17 g/t Au over 86m, including 0.32 g/t Au over 22m; hole EVE 22-043 with 0.92 g/t Au over 3m; hole EVE22-046 with 1.94 g/t Au over 2m, including 3.36 g/t Au over 1m; hole EVE22-044 with 0.63 g/t Au over 6m; hole EVE22-036 with 1.3 g/t Au over 1m; hole EVE22-033 with 1.92 g/t Au over 1m; hole EVE22-030 with 0.13 g/t Au over 87m, including 0.34 g/t Au over 8m; hole EVE22-029 with 1.39 g/t Au over 5m; and hole EVE22-028 with 0.13 g/t Au over 19m. In addition to drilling, Colibri is completing the geological mapping as well as conducting soil sampling to infill the historical property wide soil surveys.
·        Tocvan Ventures Corp., informed that seven holes were completed at its Pilar project in Sonora, totalling 1,382m and released results from the three first drill holes where the most significant drill intercepts was encountered in hole JES-22-67 with 0.4 g/t Au over 30.5m, including 7.6 g/t Au over 1.5m. Results are pending for the remaining four holes.
ON MINING
·        Guanajuato Silver Company Ltd., reported Q2, 2022 production and financial results from their El Cubo and Pinguico mines in Guanajuato (all amounts in American dollars). The company milled 94,212 tonnes to produce 155, 912 Oz Ag and 2,161 Oz Au (or 337,760 Oz AgEq) wit metallurgical recoveries of 80.91% and 82.52% respectively, at cash and all included sustaining cost (AISC) of $16.98 and $24-06 per Oz AgEq respectively. Guanajuato Silver reported revenue of $6.13M; cost of sales of $7.8M; mine operating loss of ($1.66M); net loss of ($3.5M); EBIDTA of ($1.1M); and working capital of ($2.04M). The company sold 159,840 Oz Ag, and 2,195 Oz Au (or 342, 987 Oz AgEq) at realized prices of $22.56 and $1,873 per Oz respectively.
·        Discovery Silver Corp., reported Q2, 2022 financial results (all amounts in Canadian dollars). The company reported cash and cash equivalents of $63.6M; total assets of  $101.8M; total current liabilities of $2.54M; working capital of $62.5M; and total shareholder´s equity of $99.2M.
·        Minera Alamos Inc., reported Q2, 2022 production and financial results from its Santana mine in Sonora (all amounts in Canadian dollars). The company reported that monthly mine production rates were approximately 300K tonnes, but with the opening of the Nicho Main Zone during Q2, the company is now in the position to ramp up production levels. Alamos sold 3,128 Oz Au and reported revenues of $7.3M; cost of goods sold of  $3.26M; direct cost of production of $16 per Oz; income from operations of  $2.6M; net income of $2.7M; cash and cash equivalents (including marketable securities) of  $9M; and working capital of $17M.
·        Orogen Royalties Inc., announced Q2, 2022 financial results (all amounts in Canadian dollars). The company reported revenue of $959.8K comprised from the Ermitaño royalty and $17.5K generated from prospect generation activities; project generation cost of $433.5K and recovered $448.9K in expense reimbursement from partners on optioned projects; general and administrative expenses of $875.2K; loss of $754.8K; net loss from operations of $648.6K; cash and cash equivalents from operating activities of $131.3K; cash from operating activities excluding changes in cash-cash working capital of $257.9K ; and working capital of $10.5M including $3.05M in cash and cash equivalents and $5.13M in short term investments and no long-term debt.
ON FINANCING
·        Canasil Resources Inc., announced a non-brokered private placement for gross proceeds of up to $550K. Gross proceeds will be used to fund the company´s exploration programs (Nora project, Durango).
·        Minera Alamos Inc., arranged a USD $3M working capital facility and announced a closed a USD $4.35M equity raise of common shares at $0.55/share. The combination of both enhancing the company´s working capital position as development work extends to the advancement of the Cerro de Oro project in Zacatecas.
·        Eric Sprott announced that 18,333,333 common share purchase warrants of Orex Minerals Inc., expired unexercised representing a decrease in holdings of approximately 7.2% of the outstanding common shares on a partially diluted basis since the date of the last early warning report. As a result of the warrants expiry, Mr. Sprott now beneficially owns and controls 36,666,666 shares representing approximately 19.6% of the outstanding shares on a noun-diluted basis.
ON RESOURCES AND DEVELOPMENT
·        Discovery Silver Corp., reported Q2, 2022 results from its flagship Cordero project, Chihuahua. The company reported that initial results from the Preliminary Feasibility Study (PFS) metallurgical work had recoveries of 90-95% for Ag, Pb, and Zn. It also reported that Phase 2 drilling program intercepted excellent grades below the Preliminary Economic Assessment (PEA) pit including hole C21-564 with 95 g/t Ag, 0.21 g/t Au, 1.9% Pb, and 4.5% Zn (337 g/t AgEq) over 33.9m, and hole C21-560 with 234 g/t Ag, 0.15 g/t Au, 3.8% Pb, and 6.5% Zn (606 g/t AgEq) over 18.1m, as well as hole C22-610 collared outside the current resource with 115 g/t Ag, 0.05 g/t Ag, 3.7% Pb, and 4.1% Zn (388 g/t AgEq) over 32.6m, including 187 g/t Ag, 0.05 g/t Au, 6.5% Pb, and 7.2% Zn (660 g/t AgEq) over 17.8m.
·        Minera Alamos Inc., provided an update on its Cerro de Oro project, Zacatecas. The company informed the sign off of the documentation for its Cerro de Oro project surface rights agreement in Zacatecas, allowing the company to move forward with the permitting process for the construction of its second gold operation in Mexico. Minera Alamos also informed that the NI 43-101 compliant Preliminary Economic Assessment (PEA) is nearly to be completed and is expected to get it done by next month.
·        Oroco Resource Corp., successfully tested the western side of the North Zone at its Santo Tomas project in Sinaloa by drilling 3,050m. Drilling has confirmed and expanded the 2009 Grade shell model of Cu > 0.30% derived from the historical drilling described in the Company’s 2019 Technical Report. A total of 26 holes (18,136 m of drilling) have now been completed in the North Zone, spanning 1,100m of strike length, with intersections of good grade mineralization returned in all holes for which the Company has received assays. Highlights of the last holes collared at the western side of the North Zone include hole N015 with 0.31% Cu, 0.009% Mo, 0.025 g/t Au, and 2 g/t Ag (0.36% CuEq) over 292m; hole N016 with 0.32 g/t Cu, 0.006% Mo, 0.032 g/t Au, and 2 g/t Ag (0.73% CuEq) over 95.4m, plus 0.39% Cu, 0.016%Mo, 0.022 g/t Au, and 4 g/t Ag (0.46% CuEq) over 44.7m, plus 0.26% Cu, 0.010% Mo, 0.014 g/t Au, and 2 g/t Ag (0.31% CuEq) over 88.7m; hole N017 with 0.31% Cu, 0.011% Mo, 0.02 g/t Au, and 2 g/t Ag (0.73% CuEq) over 63.8m, plus 0.22% Cu, 0.01% Mo, 0.02 g/t Au, and 1 g/t Ag (0.28% CuEq) over 159.2m; and hole N018 with 0.36% Cu, 0.011% Mo, 0.017 g/t Au, and 3 g/t Ag (0.42% CuEq) over 21m, plus 0.65% Cu, 0.012% Mo, 0.019 g/t Au, and 3 g/t Ag (0.68% CuEq) over 10m, plus 0.33% Cu, 0.012% Mo, 0.017 g/t Au, and 2 g/t Ag (0.38% CuEq) over 42.3m. The Company will commence a drill program targeted at testing the South Zone in 2022.  
ON DEALS AND CORPORATE ISSUES
·        Monumental Minerals Corp., announced that its common shares are now trading on the OTCQB Venture Market under the symbol MNMRF (Jemi project, Coahuila).
·        Argonaut Gold Inc., announced the appointment of its Vice President, Canadian Operations, effective August 29, 2022 (La Colorada mine, Sonora).
·        Aztec Minerals Corp., purchased indirectly from Kootenay Silver Inc., 35% interest in the Cervantes property in Sonora by issue 10M common shares at a price of CAD $0.25 per Aztec share for aggregate consideration of CAD $2.5M. Kootenay will retain a 0.5% Net Smelter Returned Royalty. Following the closing of the Transaction, Kootenay owns a total of 10.68M Aztec shares, which represents approximately 11.85% of the issued and outstanding Aztec shares on an undiluted basis.
·        Colibri Resource Corporation announced reinstatement of trading of its common shares on the TSX Venture Exchange. The shares will re-open for trading on the Exchange at the opening of trading on Monday, August 29. The company also announced the appointment of its new CFO (Evelyn project, Sonora).
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, boiling texture in a low-intermediate 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 July, 2022. 

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Hydrothermal Brecia

By Miguel A Heredia

During the 30th week of the year (July 25th to July 31st, 2022), at least 25 press releases were announced by companies working in Mexico, and 8 news published by the media with ten disclosing deals and corporate issues, six communicating production and financial results, six commenting on Mexican issues, four reporting resources and developments of their properties, three announcing financing issues, two informing on exploration results, and two discussing social issues. ON MEXICO ISSUES, Mithril Resources, Vizsla Silver, and Southern Silver reported the best drilling intercepts in Mexico on the fourth week of July, 2022. The biggest Mexican mining companies suffered a decrease in metal production between April and June of this year. Minera El Boleo´s representatives did not attend, for the second time, the meeting called by the General Directorate for Conciliation of Collective Affairs.  The mining sector in Mexico: factor of economic growth and social development. ON EXPLORATION, In Sonora, Aztec Minerals commenced a 3,000m core drilling program as a follow-up of its recent Phase 2 RC drilling program at its Cervantes project. In Sinaloa, Prismo received an extension to its environmental permit to drill its Palos Verdes project.  ON MINING, Alamos Gold reported Q2, 2022 production and financial results from its Mulatos mine in Sonora.  Agnico reported Q2, 2022 production and financial results from their Pinos Altos mine, Chihuahua and La India mine, Sonora. Starcore reported year end 2022 production and financial results for its San Martin mine, Queretaro. Mag Silver-Fresnillo plc JV reported Q2, 2022 production results from its Juanicipio project, Zacatecas. Sierra Metals reported Q2, 2022 production results from their Bolivar and Cusi mines in Chihuahua.  ON FINANCING, Silver Spruce announced the first closing of a private placement for gross proceed of up to $117,250 (El Mezquite project, Sonora). Bear Creek entered into a USD $5M loan facility with Auramet (Mercedes mine, Sonora). Elemental Royalties announced that its 1% Net Smelting Return (NSR) royalty on the Mercedes mine, Sonora is now payable.  ON RESOURCES AND DEVELOPMENT, Osisko Development filed a technical report to present and support the results of the Mineral Resource Estimate for its San Antonio Gold project, Sonora. Southern Silver released results from the ongoing drilling program at its Cerro Las Minitas project, Durango. Vizsla released results from nine holes targeting the southern extension of the Napoleon Vein at its Panuco project, Sinaloa. Mithril released results from its ongoing drill program on the western end of its El Refugio resource area at its Copalquin project, Durango.  ON DEALS AND CORPORATE ISSUES, Monumental announced that its common shares are now eligible for electronic clearing and settlement in the United States through the Depository Trust Company (DTC) (Jemi project, Coahuila). Orogen acquired royalties in the Sarape property in Sonora by paying USD $120K to Advance Lithium Corp. Aura Minerals announced the appointment of a new member to its Board of Directors (Aranzazu mine, Zacatecas). Aztec Minerals became 100% owner of the Cervantes project in Sonora.  Azure completed the sale of its Mexican assets to Bendito Resources. Sierra Madre announced the appointment of its new CFO (La Tigra project, Nayarit).  Prismo began trading on the OTCQB under the symbol PMOMF (Palos Verdes project, Sinaloa). Colibri announced that it has filed audited and unaudited financial statements, management discussions and analyses, and officer certifications on the System for Electronic Document Analysis and Retrieval (SEDAR) (Evelyn project, Sonora). Excellon announced the appointment of its Chief Legal Officer & VP, Corporate Affairs (La Platosa mine, Durango). ON SOCIAL RESPONSIBILITY, Fresnillo plc donated two garbage trucks to the Municipality of Fresnillo, Zacatecas. Grupo Mexico announced an investment of MXP $38,000M (about USD $1.9 B) to expand its mining operations that will generate 11,000 jobs in the next five years in Sonora state.

ON MEXICO ISSUE

  • Mithril Resources, Vizsla Silver, and Southern Silver reported the best drilling intercepts in Mexico on the fourth week of July, 2022. Details are shown in the table below:
  • The biggest Mexican mining companies suffered a decrease in metal production between April and June of this year, so their results were under pressure in the second quarter of the year, so their results were under pressure in the second quarter of the year. The Grupo México consortium reported that its net profit fell 45.9%, due to lower copper production, the reduction in the price of said metal, as well as higher costs due to inflation. After the results were announced, the shares of the mining company fell 0.67% on the Mexican Stock Exchange (BMV), closing at 75.32 each.  Fresnillo plc reported that its gold production fell 20.6% in a year-on-year comparison, totaling 158,960 Oz Au from April to June against 200,163 Oz in 2021. In addition, it produced 13.66M Oz Ag in the quarter, a 3% annual reduction compared to 14.09M Oz in the same period of 2021.
  • Minera El Boleo´s representatives did not attend, for the second time, the meeting called by the General Directorate for Conciliation of Collective Affairs. The Delegate in Baja California Sur of the Mining Union described as a lack of respect and a company neglect of the federal government, and announced that the parties are summoned by the Federal Labor Court on Monday, August 1 at 1:00 p.m., to a meeting where the union will expose some modifications to the demands for which the strike broke out and continues. The strike has left more than a thousand basic employees without work and has caused a collapse in the economy of Santa Rosalía, with effects on the rest of the municipality where hundreds of micro, small and medium-sized entrepreneurs depend directly or indirectly on the economic income produced by this company with Korean capital, which is dedicated to the exploitation of copper and other minerals.
  • The mining sector in Mexico: factor of economic growth and social development. The Ministry of Economy of the federal government reports that in 2021, the mining sector in Mexico registered an increase of 16% in the investment received compared to 2020, amounting to USD $4,246M, a situation that confirms that this sector continues to remain one of the productive branches that attracts the most investment to the country. In 2021, mining contributed 3.06% to the National Gross Domestic Product (GDP) and 9.62% to the Industrial GDP.

ON EXPLORATION

  • Aztec Minerals Corp., commenced a 3,000m core drilling program as a follow-up of its successful recent phase 2 RC drilling program conducted at its Cervantes project, Sonora. The follow-up drill program will test California, California Norte and Jasper targets “to better define the open pit, heap leach gold potential of the porphyry gold oxide cap at California, evaluate the potential for deeper copper-gold porphyry sulfide mineralization underlying the oxide cap, test for northern extensions of the California mineralization at California North and northwestern extensions of the Jasper mineralization”.
  • Prismo Metals Inc., received an extension to its environmental permit to drill its Palos Verdes project in Sinaloa. This extension allows Prismo to drill on existing roads. The Secretariat of Environment and Natural Resources (SEMARNAT) is also reviewing an additional application for a permit for new road construction. The company plans to commence the drilling program in the first week of June.

ON MINING

  • Alamos Gold Inc., reported Q2, 2022 production and financial results from its Mulatos mine in Sonora. The company produced 20,200 Oz Au and sold 18,705 Oz Au, reporting total cash cost and an all included sustaining cost (AISC) of $1,566 and $1,636 respectively per Oz Au sold. Alamos reported operating revenues of $$35.1M, and capital expenditure of $21.3M. It also provided 2022 guidance and expects to produce between 130K-145K Oz Au at cash and AISC of $1,225-$1,275 and $1,325-1,375 respectively per Oz Au sold.
  • Agnico Eagle Mines Limited reported Q2, 2022 production and financial results from their Pinos Altos mine, Chihuahua and La India mine, Sonora. At Pinos Altos mine, Chihuahua, Agnico processed 366K tonnes of 2.02 g/t Au to produce 23K Oz Au, at a production cost of USD $109 per tonne; a production cost of USD $1,732 per Oz Au produced; and a total cash cost of USD $1,383 per Oz Au produced. At La India mine, Sonora, the company processed 1,358,000 tonnes of 0.52 g/t Au to produce 20K Oz Au at a production cost of USD $13 per tonne; a production cost of USD $872 per Oz Au produced; and a total cash cost of USD $936 per Oz Au produced.
  • Starcore International Mines Ltd., reported year end 2022 production and financial results for its San Martin mine, Queretaro. The company milled 55,400 tons of 1.58 g/t Au and 23 g/t Ag with metallurgical recoveries of 88.2% and 51.4% respectively, to produce 10K Oz Au and 85.4K Oz Ag (11.2K Oz AuEq) at a mine operating cash cost of USD $62 per tonne milled, and  mine operating cash cost of USD $1,239 per Oz AuEq. Starcore reported cash on hands of USD $8.8M; working capital of USD $9.1M; Au and Ag sales of USD $25.7M; earning from mining operations of USD $5.3M; net income of USD $2.4M; and EBITDA of USD $4.8M.
  • Excellon Resources Inc., reported Q2, 2022 production and financial results from its La Platosa mine, Durango. The company mined 21,481 tonnes and processed 23,550 tonnes of 449 g/t Ag, 4.2% Pb, and 4.7% Zn with metallurgical recoveries of 90.4%, 75.5%, and 86% respectively, to produce 307.5K Oz Ag, 1.65M Lb Pb, and 2.1M Lb Zn, and a total of 260.7K Oz Ag payable, 1.4M Lb Pb payable, and 1.62M Lb Zn payable.   Excellon reported revenue of USD $7.8M; a production cost of USD 244 per tonne; a total cash cost net of by-products of USD $13.81 per Oz Ag payable; All in sustaining cost (AISC) of USD $19.24 per Oz Ag payable; and a net working capital of USD $0.1M with a cash marketable securities of USD $2.9M.
  • Mag Silver Corp., -Fresnillo plc JV reported Q2, 2022 production results from its Juanicipio project, Zacatecas. On Q2, 2022, a total of 154,069 tonnes were processed with grades of 567 g/t Ag  to produce 2.37M Oz Ag and 5,5K Oz Au of which 1.04M Oz Ag and 2.5K Oz Au are attributable to Mag due to its 44% ownership on the Juanicipio project.
  • Sierra Metals Inc reported Q2, 2022 production results from their Bolivar and Cusi mines in Chihuahua. At Bolivar mine, Chihuahua, the company processed 256,372 tonnes of 0.63% Cu, 12 g/t Ag, and 0.24 g/t Au with metallurgical recoveries of 90.61%, 80.99%, and 65.93% respectively, to produce 3.2M Lb Cu, 83K Oz Ag and 1,283 Oz Au (4.2M Lb CuEq). At Cusi mine, Chihuahua, Sierra Metals processed 66,772 tonnes of 146 g/t Ag, 0.17 g/t Au, and 0.23% Pb with metallurgical recoveries of 82.07%, 43.64%, and 80.78% respectively, to produce 258K Oz Ag, 160 Oz Au, and 273K Lb Pb (283K Oz AgEq).

ON FINANCING

  • Silver Spruce Resources Inc., announced the first closing of a private placement for gross proceed of up to $117,250. The company plans to complete second a final closing of the private placement by August 18, 2022 (El Mezquite project, Sonora).
  • Bear Creek Mining Corporation entered into a USD $5M loan facility with Auramet (Mercedes mine, Sonora). Part of the proceeds will be used to fast-track production improvements at its recently acquired Mercedes mine in Sonora.
  • Elemental Royalties Corp., announced that its 1% Net Smelting Return (NSR) royalty on the Mercedes mine, Sonora is now payable. Elemental acquired a 1% NSR royalty on the Mercedes gold-silver mine in July 2018, payable from the earlier of either a production threshold or July 28, 2022.

ON RESOURCES AND DEVELOPMENT

  • Osisko Development Corp., filed a technical report to present and support the results of the Mineral Resource Estimate at June 30, 2022 for its San Antonio Gold project, Sonora. The company reported indicated resources of 14.9M tonnes with grades of 1.2 g/t Au and 3 g/t Ag for 576K Oz Au and 1.37M Oz Ag contained, and inferred resources of 16.6M Oz Au with grades of 1.02 g/t Au and 3 g/t Ag for 544K Oz Au and 1.76M Oz Ag contained.
  • Southern Silver Exploration Corp., released results from the ongoing drilling program at its Cerro Las Minitas project, Durango. Drilling highlights include hole 21CLM-191 with 123 g/t Ag, 0.8% Cu, 0.4% Pb, and 0.6% Zn (251 g/t AgEq or 6.4% ZnEq) over a true width (TW) of 4.7m, including 848 g/t Ag, 5.6% Cu, 0.7% Pb, and 2.6% Zn (1,596 g/t AgEq or 40.5% Zn Eq) over a TW of 0.4m, and 77 g/t Ag, 4.4% Cu, 0.2% Pb, and 0.9% Zn (617 g/t AgEq or 15.6% Zn Eq) over a TW of 2.6m, including 165 g/t Ag, 0.1 g/t Au, 11.5% Cu, 0.1% Pb, and 0.4% Zn (1,463 g/t AgEq or 37.1% Zn Eq) over a TW of 1m; hole 22CLM-188 with 307 g/t Ag, 1 g/t Au, 0.5% Cu, 0.2% Pb, and 0.7% Zn (481 g/t AgEq or 12.2% Zn Eq) over a TW of 0.3m, and 128 g/t Ag, 0.8% Pb, and 1,1% Zn (202 g/t AgEq or 5.1% Zn Eq) over a TW of 12.7m, including 352 g/t Ag, 0.1% Cu, 2.4% Pb, and 1.6% Zn (500 g/t AgEq or 12.7% Zn Eq) over a TW of 4.8m, including 675 g/t Ag, 0.3% Cu, 5.5% Pb, and 3.4% Zn (1,008 g/t AgEq or 25.6% Zn Eq) over a TW of 1.3m; and hole 22CLM-187 with 98 g/t Ag, 0.1% Cu, 1% Pb, and 0.1% Zn (145 g/t AgEq or 3.7% Zn Eq) over a TW of 1.7m, plus 162 g/t Ag, 0.6 g/t Au, 0.3% Cu, 1.5% Pb, and 0.6% Zn (314 g/t AgEq or 8% Zn Eq) over a TW of 1.9m, including 499 g/t Ag, 0.1 g/t Au, 0.4% Cu, 4.6% Pb, and 1.5% Zn (759 g/t AgEq or 19.2% Zn Eq) over a TW of 0.6m, and 9 g/t Ag, 1.2 g/t Au, 0.2% Cu, 0.1% Zn (134 g/t AgEq or 3.4% Zn Eq) over a TW of 2m. These results continue to extend the silver-polymetallic mineralization laterally to the east and west in the North Felsite target on the Cerro Las Minitas project, Durango.
  • Vizsla Silver Corp., released results from nine holes targeting the southern extension of the Napoleon Vein at its Panuco project, Sinaloa. Drilling highlights include hole NP-22-300 with 913 g/t Ag, 5.28 g/t Au, 0.1% Pb, and 0.2% Zn (1,241 g/t AgEq) over a true width (TW) of 3.90m, including 1,385 g/t Ag, 6.62 g/t Au, 0.1% Pb, and 0.1% Zn (1,772 g/t AgEq) over a TW of 0.83m, including 1,750 g/t Ag, 13.75 g/t Au, 0.2% Pb, and 0.5% Zn (2,641 g/t AgEq) over a TW of 0.5m; hole NP-22-295 with 682 g/t Ag, 3.62 g/t Au, 0.7% Pb, and 2.2% Zn (990 g/t AgEq) over a TW of 1.7m, and 493 g/t Ag, 3.15 g/t Au, 0.8% Pb, and 3% Zn (813 g/t AgEq) over a TW of 1.41m; and hole NP-22-291 with 283 g/t Ag, 1.08 g/t Au, 0.6% Pb, and 4.5% Zn (517 g/t AgEq) over a TW of 1.48m, and 484 g/t Ag, 0.46 g/t Au, 0.1% Pb, and 0.9% Zn (518 g/t AgEq) over a TW of 1.18m. These results demonstrate the continuity of high-grade silver and gold mineralization along the southern extent of the main Napoleon Vein.
  • Mithril Resources Ltd., released results from its ongoing drill program on the western end of its El Refugio resource area at its Copalquin project, Durango. Significant drill intercepts were encountered in holes CDH-140 with 15.73 g/t Au and 474 g/t Ag (22.5 g/t AuEq) over 5.83m, including 45.5 g/t Au and 1,387 g/t Ag (66.73 g/t AuEq) over 1.81m; and hole CDH-141 with 1.35 g/t Au and 48 g/t Ag (2.03 g/t AuEq) over 4m, and 2.54 g/t Au and 24 g/t Ag (2.88 g/t AuEq) over 5.49m, and 1.67 g/t Au and 55 g/t Ag (2.45 g/t AuEq) over 1.8m.

ON DEALS AND CORPORATE ISSUES

  • Monumental Minerals Corp., announced that its common shares are now eligible for electronic clearing and settlement in the United States through the Depository Trust Company (DTC). The Company’s shares will now trade under the symbol “MNMRF” (Jemi project, Coahuila).
  • Orogen Royalties Inc., acquired royalties in the Sarape property in Sonora by paying USD $120K to Advance Lithium Corp. Orogen will retain 1.5% net smelter return royalty on the Sarape project.
  • Aura Minerals Inc., announced the appointment of a new member to its Board of Directors (Aranzazu mine, Zacatecas).
  • Aztec Minerals Corp., became 100% owner of the Cervantes project in Sonora by acquiring Kootenay Silver Corp´s 35% interest in the JV company that holds the Cervantes property. As consideration for the acquisition, Aztec will issue to Kootenay 10M common shares in the capital of Aztec, at a price of CAD $0.25 per share, and Kootenay  will retain a 0.5% Net Smelter Return Royalty.
  • Azure Minerals Limited completed the sale of its Mexican assets to Bendito Resources Inc, for a combination of cash and shares valued at A $20M.
  • Sierra Madre Gold and Silver Ltd., announced the appointment of its new CFO (La Tigra project, Nayarit).
  • Prismo Metals Inc., announced that its common shares have been approved for listing on the OTCQB. It will begin trading under the symbol PMOMF (Palos Verdes project, Sinaloa).
  • Colibri Resource Corporation announced that it has filed audited financial statements for the period ending December 31, 2021; unaudited quarterly financial statements for the three months period ending March 31, 2022;  management discussions and analyses for each period; , and officer certifications on the System for Electronic Document Analysis and Retrieval (SEDAR). Although the required filings have been made, trading in the Company’s common shares will not resume until: a cease trade order originally issued on May 11, 2022 by the Financial and Consumer Services Commission of News Brunswick has been revoked; and the TSX Venture Exchange has approved the reinstatement of the trading of the Company’s common shares (Evelyn project, Sonora).
  • Excellon Resources Inc., announced the appointment of its Chief Legal Officer & VP, Corporate Affairs (La Platosa mine, Durango).

ON SOCIAL RESPONSIBILITY

  • Fresnillo plc donated two garbage trucks with a capacity of 15 tonnes to the Municipality of Fresnillo, Zacatecas. Each donated truck can collect waste from 15,000 families daily. With this delivery, Fresnillo plc promotes and endorses its commitment to the people of Fresnillo.
  • Grupo Mexico announced an investment of MXP $38,000M (about USD $1.9 B) to expand its mining operations that will generate 11,000 jobs in the next five years in Sonora state. The governor of the state, Alfonso Durazo Montaño, and the executive vice president of Grupo México, Xavier García de Quevedo, announced this series of projects that are currently 47% complete and will be extended until 2027. García de Quevedo explained that the more than 11,000 jobs will be divided into 5,700 direct and indirect jobs in the construction stage and 5,660 permanent jobs in the operation. On the other hand, Irma Potes González, director of Community Development of Grupo México, explained that repair and rehabilitation works are currently being carried out on the drinking water distribution system,  in the municipalities of Nacozari and Cananea to improve the supply of water to the population.

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 hydrothermal breccia from an intermediate sulphidation epithermal vein system in Chihuahua, Mexico.  Photo by Miguel A Heredia.

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

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Hydrothermal breccia cemented by MnOx.

By Miguel A Heredia

During the 24thweek of the year (June 13th to June 19th, 2022), at least 16 press releases were announced by companies working in Mexico, and 7 news were published by the media, with five informing on exploration results, four reporting resources and developments of their properties, four disclosing deals and corporate issues, four discussing social issues, three announcing financing issues, and three commenting on Mexican issues. ON MEXICO ISSUES, Arcelor Mittal announced that the strike broke out by the National Union of Mining, Metallurgical, Steel and Similar Workers of the Mexican Republic will affect the economy of Michoacan.  With the strike carried out by Napoleón Gómez Urrutia and his miners in Lazaro Cardenas, Michoacan to the company Arcelor Mittal Mexico, they managed to jump the “cap” in the payment of utilities. The first International Mining Women’s Day was commemorated. ON EXPLORATION, In Sonora, Aztec-Kootenay JV reported final results from 2021-2022 RC drilling program on its Cervantes project, Colibri announced that its Phase 1 RC drilling program has been completed at its Evelyn project, and Prismo completed a LiDAR survey at its Los Pavitos project. In Coahuila, Monumental released sampling results from its Jemi Heavy Rare Earth Elements project. In Sinaloa, Prismo informed that it plans to drill a minimum of 2,000m at its Palos Verdes project. ON FINANCING, Prismo reached an agreement to exercise a total of up to 6,821,250 outstanding founder warrants for gross proceeds of $682,125 (Palos Verdes project, Sinaloa). Radius announced that it receives the final USD $700K option cash payment from Pan American Silver in order to earn its option for 65% of the Amalia property in Chihuahua. SilverCrest reported results from its annual general meeting of shareholders (Las Chispas project, Sonora). Silver Wolf closed a non-brokered private placement for gross proceeds of $602,160 (Ana Maria project, Durango). ON RESOURCES AND DEVELOPMENT, Avino released results from Phase 2 of its 2021/2022 drilling program conducted at its Avino project, Durango. Silver Dollar reported initial results from the Phase II drilling ongoing program conducted at its La Joya project in Durango. Silver Tiger announced drilling results from the Sooy Vein at its El Tigre project, Sonora. Sonoro completed Phase IV drilling program at its Cerro Caliche project, Sonora.  ON DEALS AND CORPORATE ISSUES, Gatos silver announced the pass away of one of its Directors (Cerro Los Gatos, Chihuahua). Sierra Metals announced the appointment of a new member as Chair of its Board of Directors (Bolivar mine, Chihuahua). Silverton announced the appointment of its new CEO and Director (Peñasco Quemado project, Sonora). ON SOCIAL RESPONSIBILITY, Peñoles recognized the academic performance of sixteen young students of the Laguna del Rey Center for Technical Studies. Esperanza Silver de México, responsible for the Esperanza mining project, signed a collaboration agreement with the Zacatepec Technological Institute. Minera Cuzcatlán adopted a wastewater treatment plant in Ocotlán, Oaxaca. Industrias Peñoles announced the summer activities that will take place during June and July at the Community Center and in the Metals Museum.

ON MEXICO ISSUE

  • Arcelor Mittal announced that the strike broke out by the National Union of Mining, Metallurgical, Steel and Similar Workers of the Mexican Republic will affect the economy of Michoacan and the metallurgical sector. The strike will have an impact and serious consequences in the short, medium and long term on labor and economic stability in the Lázaro Cárdenas region, in the state of Michoacán, in the production chain and in the country´s economy.
  • With strike, Napoleón Gómez Urrutia and his miners managed to jump the “cap” in the payment of utilities. With the work stoppage carried out by mining workers from section 271 in Lázaro Cárdenas Michoacán to the company Arcelor Mittal Mexico, on June 15, they managed to eliminate the “cap” on the payment of utilities that was included with the labor reform in April of 2021. This is not the first union organization to take action to pressure the company to grant a higher amount in the payment of utilities.
  • The first International Mining Women’s Day was commemorated. This June 15 marks the first World Mining Women’s Day as an initiative of the International Organization “Women in Mining”. Engaging the Women Mining Community, the International Day of Women in Mining will showcase the experiences, hopes and aspirations about the industry, and celebrate the personal achievements of women in the industry.

ON EXPLORATION

  • Aztec Minerals Corp – Kootenay Silver Inc. JV reported final results from 2021-2022 RC drilling program on its Cervantes project in Sonora. The program comprised 5,249 meters in 26 RC drill holes, testing 4 targets (Purisima East, California, Jasper, and California North). Hole CAL-22-018 drilled at California target intersected a high pyrite zone anomalous in copper, molybdenum, gold and silver that corresponds well with the top of large, strong IP chargeability anomaly. It encountered 0.22 g/t Au over 24.32m, plus 0.27 g/t Au over 10.64m, and 0.062% Cu over 68.4m, 1 g/t Ag over 28.88m, and 122 ppm Mo over 39.52m.
  • Colibri Resource Corporation announced that its Phase 1 RC drilling program has been completed at its Evelyn project in Sonora. The Phase 1 drill program consisted of 6,547m in 45 holes. Drill results from the first 22 holes were released previously and assays are pending for the remaining 23 holes.
  • Prismo Metals Inc., recently completed a LiDAR survey conducted over almost 40 square kilometers at its Los Pavitos project in Sonora. The company expects to receive the analysis of the LiDAR results in a few weeks to aid in the delineation of important structural trends and complete the work to identify drill targets this summer.
  • Monumental Minerals Corp., released results from 21 samples collected at its Jemi Heavy Rare Earth Elements project. Seven out of 21 samples returned values greater than 0.15% total rare earth oxide (TREO), including three samples that returned values greater than 0.25% TREO, and up to 0.54% TREO. “The assay results confirm that samples with the highest rare earth element content are those rocks that are classified as peralkaline (sodium plus potassium concentrations are greater than aluminum concentrations”. In addition, a single rock grab sample collected in the eastern claim area returned values of 13.5% Zn and 6.8% Pb and is classified as carbonate replacement-style mineralization.
  • Prismo Metals Inc., informed that it plans to drill a minimum of 2,000m at its Palos Verdes project in Sinaloa to test mineralization at depth under the high-grade intercepts from previous drilling campaigns.

ON MINING

  • No relevant news.

ON FINANCING

  • Prismo Metals Inc., reached an agreement to exercise a total of up to 6,821,250 outstanding founder warrants for gross proceeds of $682,125. Gross proceeds will be primarily used to drill a minimum of 2,000m at its Palos Verdes project, Sinaloa. Prismo also expects to use some of the proceeds to finalize surface exploration work on its Los Pavitos project in Sonora.
  • Radius Gold Inc., announced that it receives the final USD $700K option cash payment from Pan American Silver Corp., in order to earn its option for 65% of the Amalia property in Chihuahua.
  • Silver Wolf Exploration Ltd., closed a non-brokered private placement for gross proceeds of $602,160. Net proceeds will be used for financing the ongoing drill program at its Ana Maria project in Durango, and for general working capital requirements.

ON RESOURCES AND DEVELOPMENT

  • Avino Silver & Gold Mines Ltd., released results from phase 2 of its 2021/2022 drilling program conducted at its Avino project, Durango. Six underground holes were completed below the current level 17 mining area to define the continuity of economic mineralization at depth in the central part of the vein. Selected high grade intercepts include hole ET-22-01 with 0.06 g/t Au, 34 g/t Ag, and 0.66% Cu (127 g/t AgEq) over a true width (TW) of 0.80m on HW BX, including 0.12 g/t Au, 199 g/t Ag, and 2.75% Cu (577 g/t AgEq) over a TW of 0.10m, and 0.14 g/t Au, 21 g/t Ag, and 0.54% Cu (104 g/t AgEq) over a TW of 23.10m on HW STW, including 0.66 g/t Au, 759 g/t Ag, and 2.90% Cu (1,202 g/t AgEq) over a TW of 0.19m, including 1.35 g/t Au, 98 g/t Ag, and 1.92% Cu (466 g/t AgEq) over a TW of 0.34m, including 0.46 g/t Au, 72 g/t Ag, and 2.42% Cu (434 g/t AgEq) over a TW of 0.29m, including 0.15 g/t Au, 77 g/t Ag, and 3.17% Cu (514 g/t AgEq) over a TW of 0.24m, and 0.20 g/t Au, 61 g/t Ag, and 0.96% Cu (206 g/t AgEq) over a TW of 41m on Avino Vein, including 0.31 g/t Au, 71 g/t Ag, and 2.42% Cu (421 g/t AgEq) over a TW of 0.56m, including 0.09 g/t Au, 482 g/t Ag, and 1.40% Cu (678 g/t AgEq) over a TW of 0.75m, including 2.05 g/t Au, 99 g/t Ag, and 4.73% Cu (901 g/t AgEq) over a TW of 0.56m, including 2.75 g/t Au, 831 g/t Ag, and 3.82% Cu (1,568 g/t AgEq) over a TW of 0.19m, including 1.39 g/t Au, 246 g/t Ag, and 2.27% Cu (664 g/t AgEq) over a TW of 0.75, including 4.37 g/t Au, 1,234 g/t Ag, and 21.90% Cu (4,527 g/t AgEq) over a TW of 0.19m; and hole ET 21-08 with 0.28 g/t Au, 11 g/t Ag, and 0.6% Cu (112 g/t AgEq) over a TW of 1.94m on HW BX and 0.53 g/t Au, 41 g/t Ag, and 1.06% Cu (226 g/t AgEq) over a TW of 30m on Avino Vein, including 5.58 g/t Au, 86 g/t Ag, and 0.56% Cu (617 g/t AgEq) over a TW of 0.65m. “The drilling results have confirmed the down dip continuity of widths and grades of the Avino vein extending significant potential to a depth of at least 290 metre down dip below current development”.
  • Silver Dollar Resources Inc., reported initial results from 4 holes of the phase II drilling ongoing program at the unexplored La Noria portion of its La Joya project in Durango. Significant intersections were encountered in hole NOR-22-013 with 90 g/t Ag, 0.41 g/t Au, 0.08% Cu, 0.4% Pb, and 1% Zn (198 g/t AgEq) over 43,12m, including 192 g/t Ag, 0.27 g/t Au, 0.06% Cu, 1% Pb, and 2.2% Zn (363 g/t AgEq) over 19.35m, including 451 g/t Ag, 0.62 g/t Au, 0.07% Cu, 2.3% Pb, and 4.6% Zn (815 g/t AgEq) over 5m; and hole NOR-22-015 with 23 g/t Ag, 0.26 g/t Au, 0.07% Cu, 0.03% Pb, and 5.6% Zn (319 g/t AgEq) over 23.2m. To date, a total of 1,899m over 10 holes have been drilled in Phase II. Assay results are pending for the remaining 6 holes.
  • Silver Tiger Metals Inc., announced drilling results from the Sooy Vein at its El Tigre project, Sonora. Highlights drill intercepts include hole ET-21-300 with 0.06 g/t Au, 239 g/t Ag, 0.3% Cu, 0.1% Pb, and 0.2% Zn (281 g/t AgEq) over 4.9m, including 0.24 g/t Au, 2,230 g/t Ag, 2.85% Cu, 0.7% Pb, and 0.8% Zn (2,565 g/t AgEq) over 0.5m; and hole ET-21-289 with 0.12 g/t Au, 901 g/t Ag, 0.61% Cu, 3.1% Pb, 7.3% Zn (1,286 g/t AgEq) over 0.6m. The company also reported that over 370m of rehabilitation in Level 7 of the historic El Tigre mine have been completed. 
  • Sonoro Gold Corp., completed Phase IV drilling program at its Cerro Caliche project, Sonora, and reported results from the final seven holes. The company completed over 7,200m in 63 holes which returned multiple higher-grade gold intercepts and demonstrated the expansion of several known mineralized gold zones within the Cerro Caliche concession.  Highlights drill intercepts include hole SCR-321 with 1.34 g/t Au and 9 g/t Ag (1.38 g/t AuEq) over 15.24m, including 3.66 g/t Au and 15 g/t Ag (3.73 g/t AuEq) over 4.57m, plus 1.1 g/t Au and 0.8 g/t Ag (1.11 g/t AuEq) over 1.52m; and hole SCR-322 with 0.78 g/t Au and 5 g/t Ag (0.81 g/t AuEq) over 18.29m, including 4.88 g/t Au and 20 g/t Ag (4.97 g/t AuEq) over 1.52m. “Drilling results from the now completed Phase IV campaign will be included in an updated resource estimation scheduled to be announced in the fall of 2022. The economic impact of the updated resource on the proposed heap leach mining operation is also to be assessed and will be contemplated in a further technical report”.

ON DEALS AND CORPORATE ISSUES

  • Gatos Silver Inc., announced the pass away of one of its independent non-executive Directors (Cerro Los Gatos, Chihuahua).
  • Sierra Metals Inc., announced the appointment of a new member as Chair of its Board of Directors (Bolivar mine, Chihuahua).
  • Silverton Metals Corp., announced the appointment of its new CEO and Director (Peñasco Quemado project, Sonora).
  • SilverCrest Metals Inc., reported results from its annual general meeting of shareholders (Las Chispas project, Sonora).

ON SOCIAL RESPONSIBILITY

  • Servicios Industriales Peñoles recognized the academic performance of sixteen young students of the Laguna del Rey Center for Technical Studies. The outstanding students are about to conclude their theoretical instruction as technical professionals, to then go on to put their knowledge into practice for an entire semester by joining the work teams of different mining units in different states of the Republic, with the possibility of in the end, they will be formally hired.
  • Esperanza Silver de México S.A. de C.V., responsible for the Esperanza mining project, signed a collaboration agreement with the Zacatepec Technological Institute, which will allow students from this important professional training institution in the state of Morelos, to carry out their professional residences at Minera Esperanza Silver.
  • Minera Cuzcatlán (Fortuna Silver Mines Inc.), adopted a wastewater treatment plant in Ocotlán, Oaxaca. The Wastewater Treatment Plant (WWTP ) located in the municipality of Ocotlán de Morelos supplies 80% of the water it uses in its processes and the rest is obtained from rainwater harvested through a canal system
  • Industrias Peñoles S.A.B. de C.V., announced the summer activities that will take place during June and July at the Community Center and in the Metals Museum. 

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 cemented by Mn Ox in an epithermal vein system, in Durango, Mexico.  Photo by Miguel A Heredia.

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

/ gambusinoprospectormexico / Leave a comment
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. 

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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. 

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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. 

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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.