The Mining and Exploration News in Mexico: Highlights on the Fourth Week of January, 2020

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By Jorge Cirett

During the 4th week of the year (January 20th to January 26th, 2020), at least 22 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, Highlights on some advanced projects were shared, including Ermitaño, Santana, Media Luna and La Colorada skarn. A good week for Mexican mining companies on the Bolsa Mexicana de Valores (BMV), with share price increments for Grupo Mexico, Industrias Peñoles, Orbia (Mexichem) and Cemex. The president of Mexico stated no mining concessions for lithium have been granted under his term.  ON EXPLORATION, in Sonora, Riverside reported good surface sampling results from its El Cuarenta project; Minaurum completed the phase I drilling program at its Alamos Silver project, testing 19 of 25 identified vein systems; Mexus Gold is looking to JV its Mabel and Ures properties. In Zacatecas, Advance Gold released results from the first hole at a chargeability anomaly in its Tabasqueña project. In Hidalgo, Santacruz Mining staked the Lechuga property.  ON MINING, Argonaut Gold, Coeur Mining, Gold Resource, Premier Gold, Sierra Metals, and First Majestic released production results for Q4 and full year 2019.  ON FINANCING, Silver Spruce filed an amendment at the TSX regarding the Cocula project in Jalisco. ON RESOURCES AND DEVELOPMENT, Minera Alamos announced construction is ongoing at its Santana project in Sonora. Argonaut Gold informed it is reviewing its option on the San Antonio project in Baja California Sur, whereas at Cerro del Gallo in Guanajuato the company is to produce a corrected bundle of documents to re-submit to the authorities for authorization. Silver Crest released high grade results from the Babi Sur vein at its Las Chispas property in Sonora. Impact Silver released good surface sampling results on two veins at an open pit at its Zacualpan property in Estado de Mexico. Mexus Gold started mining a new zone at its Santa Elena mine in Sonora. GoGold released results from nine more holes at its Los Ricos project in Jalisco. Mexican Gold released drilling results from its Las Minas project in Veracruz. Prime Mining announced surface results from road cuts and trenches from its Los Reyes project in Sinaloa. GR Silver Mining updated on its exploration results at its San Marcial project in Sinaloa.   ON DEALS AND CORPORATE ISSUES, Leagold was advised to vote favorably on a proposed merge with Equinox. ON SOCIAL RESPONSIBILITY. The Mining Fund allocated the resources for rehabilitation of a sports field in Santa Barbara, Chihuahua. Esperanza Silver is to apply a new model of mining on the development of the Esperanza mine, in Morelos. Minera San Xavier formalized the transference of its silver’s jewelry shop to one of its employees in Cerro San Pedro, San Luis Potosi. The Guerrero government, the Municipality of Cocula and Torex Gold are to pave a road in Cocula.

ON MEXICO ISSUES

  • Some new projects highlights: First Majestic initiated a 3,000 m development program designed to get the Ermitaño project in Sonora into production by early 2021. Ermitaño is 4 km from First Majestic’s Santa Elena mine. Minera Alamos has started construction of its Santana mine in Sonora, where it expects to start producing gold later in the year from heap leach operations. Torex Gold released a new resource estimation for its Media Luna project in Guerrero, with 12.6 M tonnes @ 5.55 gpt Au Eq containing 2.24 M Oz AuEq as indicated resources, and 33.5 M tonnes @ 4.23 gpt Au Eq containing 4.56 Oz AuEq as inferred resources. The capital needed to take this project into production is estimated at US496 M, to reach a yearly production of 170 K Oz Au, 1.7 M Oz Ag and 21 K tonnes Cu. The giant La Colorada skarn discovery by Pan American Silver in Zacatecas has an initial inferred resource base of 73.5 M tonnes containing 102 M Oz Ag, 3.2 M tonnes Zn, 1.5 M tonnes Pb and 121 K tonnes Cu. The project is to see 44,000 m of drilling during 2020, with a cost of US$7.5 M.
  • Listed mining companies in the Mexican Stock Exchange (Bolsa Mexicana de Valores, or BMV) had a good week. Grupo Mexico was up 5.9%, Industrias Peñoles 1.9%, Orbia (Mexichem) 5.75% and Cemex 8.91%.
  • The president of Mexico, Andrés Manuel López Obrador (also known as AMLO) assured this week that no concession has been delivered on his term for lithium exploitation. (In fact, the delivery of all mining concessions has been halted indefinitely by the actual government).

ON EXPLORATION

  • Riverside Resources Inc. reported on surface sampling and field work at its El Cuarenta project in Sonora. Three prospective targets were identified: Santa Rosalía, Santa Rosalía Sur and El Sombrero, with sampling returning five samples of sixteen above 5 gpt Au, and a best result of 25.7 gpt Au. The Santa Rosalía target consists of multiple sub-parallel low sulfide quartz veins on a fault zone 1 Km long in volcanic rocks. At Santa Rosalía Sur there is an 800 m long structural zone in volcanic rocks with shallow dipping sheeted quartz veins showing banded quartz and lattice textures. El Sombrero displays extensive alteration and high temperature alteration minerals like dickite, pyrophyllite and kaolinite, as well as a highly silicified cap.
  • Minaurum Gold Inc. completed its phase I drill program at the Alamos Silver project in Sonora, testing 19 of the 25 identified vein systems with 18,810 m in 40 holes.. Fourteen of the nineteen vein systems returned high-grade silver intercepts, on a 10 km long by 6 km wide corridor. Highlighted intervals from the last round of drilling comprise: 7.60 m @ 155 gpt Ag, including 2.15 m @ 470 gpt Ag; 0.20 m @ 367 gpt Ag, 6.75 gpt Au, 1.35% Cu, 0.59% Pb, 0.56% Zn at the Púlpito and Cotera veins. 6.60 m @ 1.94% Cu, 0.5% Pb, 1.5% Zn at the Alessandra vein. 1.1 m @ 729 gpt Ag, 1.73 gpt Au, 0.13% Cu, 3.0% Pb, 5.7% Zn at the Promontorio vein. 0.50 m @ 160 gpt Ag at La Dura vein. 1.05 m @ 245 gpt Ag, 0.74% Cu, 0.4% Pb, 0.7% Zn at Las Animas vein. And 7.35 m @ 47 gpt Ag on the Rosario vein. “Phase II is expected to commence in late-March and will include a minimum of 20,000 m of drilling”.
  • Mexus Gold US. is to look for a JV on its Mabel and Ures properties in Sonora. The Mabel property has 611 holes in 6 drilling campaigns since 2002. In the Ures property the targets are a porphyry copper system and high grade silver.
  • Advance Gold Corp. released drill results from one drill hole at its Tabasqueña project in Zacatecas. The first hole into a 1000 x 500 m chargeability anomaly returned 78 m of continuous zinc mineralization, including 1.10 m @ 1.88% Zn, 1.40% Pb, 77 gpt Ag, 0.20 gpt Au and 34 m @ 23 gpt Au, and 1.10 m @ 101 gpt Ag, 0.59% Pb, 0.74% Zn.

ON MINING

  • Argonaut Gold Inc. released production results for 2019 and the fourth quarter 2019. During 2019 the company produced 186,615 Oz AuEq, with 47,521 Oz AuEq produced during the Q4. During the same quarter production at El Castillo complex in Durango was 34,899 Oz AuEq (13,896 Oz AuEq from El Castillo and 21,003 Oz AuEq from San Agustin), and 12,622 Oz AuEq at La Colorada, in Sonora. For 2019, total production was 131,727 Oz AuEq at El Castillo Complex and 55,338 Oz AuEq at La Colorada.
  • Coeur Mining Inc. announced production results for full year 2019 and fourth quarter 2019, including figures from Mexico. At Palmarejo, in Chihuahua, 1.76 M tonnes were milled @ 2.49 gpt Au, 151 gpt Ag, recovering 84.3% Au, 79.3% Ag, to produce 111,932 Oz Au, 6.84 M Oz Ag during the year. During the last quarter 486.8 K tonnes were milled @ 2.18 gpt Au, 159 gpt Ag, recovering 84.9% Au, 81.7% Ag, to produce 28,702 Oz Au, 1.98 M Oz Ag.
  • Gold Resource Corp. provided full-year 2019 and fourth quarter 2019 production results, including figures from its Mexican operations. Production for 2019 in its Oaxaca Mining Unit was 29,435 Oz Au, 1.7 M Oz Ag, 1,859 tonnes Cu, 9,202 tonnes Pb, 23,683 tonnes Zn; during the first quarter 7,554 Oz Au, 417.9 K Oz Ag were produced.
  • Premier Gold Mines Ltd. released production results for the fourth quarter and full year 2019, including figures from its Mexican operations. At Mercedes, 12,274 Oz Au, 44.8 K Oz Ag were produced during the fourth quarter, adding up to 59,901 Oz Au, 191.3 K Oz Ag for the year. The production Guidance for 2020 is 65-75 K Oz Au at cash cost $850-$875 per Oz and all-in sustaining costs of $1,125-$1,275 per Oz.
  • Sierra Metals Inc. reported fourth quarter and full year 2019 production results, including figures from its Mexican operations. At Bolivar, in Chihuahua, 348.4 K tonnes were processed at a 3,982 tpd rate and a grade of 0.87% Cu, 21 gpt Ag, 0.32 gpt Au, recovering 84.8% Cu, 78.7% Ag, 62.3% Au to produce 5.66 M Lb Cu, 185 K Oz Ag, 2,216 Oz Au during the fourth quarter; and 1.27 M tonnes were processed at a rate of 3,628 tpd @ 0.85% Cu, 20 gpt Ag, 0.27 gpt Au, recovering 83% Cu, 79.2% Pb, 63.5% Zn to produce 19.83 M Lb Cu, 640 K Oz Ag, 6,794 Oz Au during the year. At Cusi, in Chihuahua, 61.4 K tonnes were processed at a rate of 702 tpd, at a grade of 210 gpt Ag, 0.14 gpt Au, 0.23% Pb, 0.23% Zn, recovering 79.8% Ag, 28.4% Au, 74% Pb, 0% Zn to produce 190 K Oz Ag, 78 Oz Au, 232 K Lb Pb during the quarter; and 285.2 K tonnes processed at a daily rate of 815 tpd at a grade of 129 gpt Ag, 0.15 gpt Au, 0.2% Pb, 0.2% Zn, recovering 79.1% Ag, 36.1% Au, 75.4% Pb, 0% Zn, to produce 936 K Oz Ag, 493 Oz Au, 904 K Lb Pb for the year.
  • First Majestic Silver Corp. announced 2020 production and cost guidance. San Dimas (Durango), La Encantada (Coahuila) and Santa Elena (Sonora) are the mines to continue in operation, while production has been halted at San Martin (Jalisco) and Del Toro (Zacatecas). The projected AISC is to be in the $13.37-$15.46 range per Oz Ag. At San Martin the mine is closed since mid-2019 due to security concerns, while at Del Toro, 22,450 m of exploration drilling are planned to develop new resources.First Majestic 2020 Guidance1

ON FINANCING

  • Silver Spruce Resources Inc. filed an amendment on the TSX Venture Exchange about the letter of agreement signed with ProDeMin, under which Silver Spruce is required to issue 1.7 M shares. Of those, 1.5 M shares are to be issued to ProDeMin and 200 K shares to the land owners of the Cocula project, in Jalisco (Pino de Plata, Chihuahua).

ON RESOURCES AND DEVELOPMENT

  • Minera Alamos Inc. informed that construction is ongoing at its Santana project in Sonora. The estimated construction time is six to eight months. During January and February is to start preparing the surfaces for leach pads and tailings dam, as well as roads on the mining area.
  • Argonaut Gold Inc. provided an update on its development projects. At San Antonio in Baja California Sur, Argonaut is looking at a probable non-monetary, book value decrement due to the uncertainty of obtaining the needed permits for development. The company is reviewing its options, like looking for zoning regulations changes, a revised environmental application and legal action options. At Cerro El Gallo, in Guanajuato, a “Documento Técnico Unificado” (several studies bundled together, needed to start development of the project) during the second quarter 2019. SEMARNAT asked for several minor changes and re-submittal, which is to be done during 2020 first quarter. SEMARNAT is to have 60 days to present its decision afterwards. Argonaut is also evaluating the possibility of producing fewer ounces in 2020, while improving the cash flow.
  • SilverCrest Metals Inc.released additional in-fill and expansion drill results from 71 holes on the Babi Sur vein at its Las Chispas project in Sonora. The current drilling has augmented the vein averages from 0.95 m (true width) @ 4.10 gpt Au, 268 gpt Ag (575 gpt AgEq) to 1.7 m tw @ 9.82 gpt Au, 382 gpt Ag (1,119 gpt AgEq). These results suggest a wider and higher grade vein than estimated in the previous resources, still open on strike and at depth. Currently there are 17 drill rigs working from the surface, and two from underground. The best drill holes returned true widths of 2.5 m @ 90.98 gpt Au, 108 gpt Ag (6,931 gpt AgEq); 7.8 m @ 10.53 gpt Au, 79 gpt Ag ((877 gpt Ag); 2.8 m @ 12.91 gpt Au, 1,141 gpt Ag (2,109 gpt AgEq).
  • Impact Silver Corp. announced results of a sampling program in the Veta Negra area on its Zacualpan property in Estado de Mexico. At Veta Negra two parallel veins averaging 14 m in width at an historic open pit, with a 650 m strike length. At the open pit about 50 m of vein strike were sampled, averaging 22.70 m @ 206 gpt Ag, 0.02 gpt Au, 0.14% Pb, 0.31% Zn on the El Socorro vein, and 16.02 m @ 208 gpt Ag, 0.13 gpt Au, 0.41% Pb, 0.56% Zn on the Veta Negra vein. A sub parallel vein 120 m from the Veta Negra returned up to 1.20 m @ 59 gpt Ag, 2.11 gpt Au, 0.19% Pb, 0.11% Zn; 1.30 m @ 286 gpt Ag, 1.07 gpt Au, 0.27% Pb, 0.05% Zn; 0.80 m @ 1,595 gpt Ag, 0.64 gpt Au, 0.19% Pb, 0.06% Zn; 0.80 m @ 309 gpt Ag, 1.53 gpt Au, 0.31% Pb, 0.06% Zn; 0.80 m @ 70 gpt Ag, 13.85 gpt Au, 0.21% Pb, 0.09% Zn; 1.90 m @ 215 gpt Ag, 1.04 gpt Au, 0.22% Pb, 0.08% Zn.
  • Mexus Gold US. began mining on the Julio vein/shear zone  via a 300 x 20 m open pit at its Santa Elena mine in Sonora (not to mistake with First Majestic’s Santa Elena mine, also in Sonora). Mined material was crushed and added to the heap leach facilities, with ore assaying 4 gpt Au, and as high as 16 gpt.
  • GoGold Resources Inc. released results from nine more drill holes at Los Ricos project in Jalisco. Highlighted hole length intervals comprise 16.8 m @ 0.36 gpt Au, 86 gpt Ag (1.51 gpt AuEq); 17.1 m @ 0.21 gpt Au, 60 gpt Ag (1.01 gpt AuEq), including 4.5 m @ 0.60 gpt Au, 104 gpt Ag (1.99 gpt AuEq); 18.9 m @ 2.01 gpt Au, 496.4 gpt Ag (8.63 gpt Au), including 5.0 m @ 7.30 gpt Au, 1,833 gpt Ag); 22.7 m @ 0.63 gpt Au, 65 gpt Ag (1.49 gpt AuEq), including 6.7 m @ 1.76 gpt Au, 114 gpt Ag (3.28 gpt AuEq); 12.9 m @ 0.57 gpt Au, 96 gpt Ag (1.86 gpt AuEq), including 6.5 m @ 1.08 gpt Au, 175 gpt Ag (3.41 gpt AuEq); 13.9 m @ 0.62 gpt Au, 80 gpt Ag (1.69 gpt AuEq), including 5.8 m @ 1.34 gpt Au, 141 gpt Ag (3.23 gpt AuEq).
  • Mexican Gold Corp. released drilling results on its Las Minas project, Veracruz. The 13 holes targeted a TEM anomaly, infill at El Dorado, Cinco Señores and Pueblo Nuevo zones. One hole at the TEM anomaly intersected endo skarn and is a good guide to further drilling; Two holes on El Dorado infill intersected higher grade mineralization than expected, a third one did not reach the sought contact zone; The two holes at Cinco Señores did not intersect the contact; At Pueblo Nuevo, drilling intersected several gold bearing veins, without the high gold and base metal values sampled at surface. Highlighted results comprise: 19.5 m tw @ 0.95 gpt Au,4 gpt Ag, 1.30% Cu; 6.0 m tw @ 1.36 gpt Au, 5 gpt Ag, 1.08% Cu; 5.2 m @ 8.94 gpt Au (including 2.0 m @ 21.37 gpt Au); 0.7 m @ 3.23 gpt Au; 0.9 m @ 2.69 gpt Au; 0.95 m @ 2.71 gpt Au.
  • Prime Mining Corp. announced surface results from trenches and road cuts from its Los Reyes project in Sinaloa. These samples show gold grades over significant widths in an area outside the historical resource at El Zapote North and South. Road cut sampling returned 24.5 m @ 7.94 gpt Au, 59 gpt Ag; 13.5 m @ 12.17 gpt Au, 71 gpt Ag; 27.0 m @ 1.53 gpt Au, 25 gpt Ag; 37.5 m @ 0.76 gpt Au, 18 gpt Ag. Surface trenching at Zapote Central returned 30.0 m @ 3.93 gpt Au, 40 gpt Ag; 7.5 m @ 8.71 gpt Au, 60 gpt Ag; 10.5 m @ 0.88 gpt Au, 62 gpt Ag; 25.5 m @ 0.33 gpt Au, 15 gpt Ag.
  • GR Silver Mining Ltd. (Goldplay Exploration Ltd.) updated on its exploration results for 2019 at its San Marcial project in Sinaloa. Late 2019 drill holes returned up to 28.7 m @ 92 gpt Ag, including 13.75 m @ 154 gpt Ag and 0.6 m @ 138 gpt Ag, 0.56 gpt Au. High-grade depth extensions are to be sought by underground drilling below the current resource. XRF litho-geochemistry for target generation has re-commenced and due diligence work started on the potential acquisition of the Plomosas and La Trinidad projects.

ON DEALS AND CORPORATE ISSUES

  • Santacruz Mining Ltd. acquired by staking the La Pechuga property in Hidalgo. The mining concession (application??) covers 3,025 ha 25 km SE from the Zimapan mine. Several historic mines are developed in 3-8 m wide carbonate replacement or skarn mineralization hosted on El Doctor Formation limestone. Previous sampling by the SGM (Servicio Geológico Mexicano) reported up to 770 gpt Ag, 0.50 gpt Au, 21.9% Pb, 13.4% Zn, 0.47% Cu.
  • Leagold Mining Corp. announced a recommendation by advisory firms for a favorable vote on a proposed merger with Equinox Gold Corp., on the special meeting to be held on January 28, 2019 (Leagold: Los Filos, Guerrero. Equinox: Mesquite, California, USA).

ON SOCIAL RESPONSIBILITY

  • The Mining Fund allocated the resources needed for the rehabilitation of the sports field in Santa Barbara, Chihuahua. The facilities were inaugurated by Antonio Bilbao, president of the Municipality, where 336 square meters were rehabilitated, with lighting and other improvements performed, counting on a total investment of $796,381 pesos. Approximately 500 inhabitants benefit with the resources provided by the Mining Fund..
  • Esperanza Silver (Alamos Gold) is to start operations at its Esperanza project in Tetlama, Morelos, by the end of 2020 or early 2021. The company has initiated to inform the communities on the permits obtained and the remaining, in the high margination zone. The project is proposed as “Nuevo Modelo de Minería Social y Ambientalmente Responsable” (A New Model on Socially and Environmentally Responsible Mining), promoting community development, with the respect to human rights and social and environmental issues standing prominently in the company model. By this approach the project would stick by the rules set by the UNO 2030 schedule, with plans for Social Management, Cultural Management and Economic Management. To eradicate poverty, mining can pay taxes and royalties, develop local supply lines, strengthen local value chains, promote inclusive employment, preserve land access, conservation and recycling of water, water management, improve energy efficiency, incorporate renewable energy and keep the public aware of opportunities and limitations.
  • Minera San Xavier formalized the delivery of the company’s silver jewelry shop, “La Victoria”. The shop is located on the historic down town of Cerro San Pedro, in San Luis Potosí, with the sale were included the machinery, tools and silver inventory. The shop was offered to employees and workers of Minera San Xavier through an open bid, of which Mónica Daniela Fierros obtaining the shop by presenting a plan with continuing local team, sustainability, innovation, creativity, quality and leadership.
  • Guerrero’s Governor, Héctor Astudillo, signed an agreement with Minera Media Luna and the Cocula Municipalty, to pave 5 km of road between Real del Limón-La Fundición, benefiting more than 1,200 inhabitants. Each of the agreement signers is to deliver $5 M pesos for the construction work.

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

On the image below: Underground picture of a quartz vein in an orogenic gold system of Oaxaca, by Jorge Cirett.

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

 

Boiling texture in an epithermal quartz vein

By Miguel A Heredia

During the third week of the year (January 13th to January 19th, 2020), at least 27 press releases were announced by companies working in Mexico, with eight communicating production results, seven reporting on resources and developments, five informing on exploration results, two disclosing deals and corporate issues, two discussing issues on social responsibility, two commenting on Mexican issues, and one announcing financial rounds.  ON MEXICO ISSUES, The Mexican mining industry, the thirteenth largest in the world, is laying the groundwork for generating more investment in this important development engine. Mining  activity has increased in Tamaulipas, according to the General Directorate of Mines.  ON EXPLORATION, In Sonora, Silver Viper released drilling results from its La Virginia project and Aztec Minerals provided a 2020 outlook for its Cervantes project. In Chihuahua, Radius announced results from the third phase of drilling from its Amalia project. In Sinaloa, Vizsla Resources discovered a new high grade vein at its Panuco project. In Zacatecas, Advance Gold commenced the third phase geophysical survey at its Tabasquena project. ON MINING, Alamos Gold commenced operation at its Cerro Pelon mine in Sonora. Torex announced that it expects to produce between 420K to 480K Oz Au in 2020 (El Limón Guajes, Guerrero). Great Panther, GoGold, McEwen, Fortuna Silver, Avino, and Coeur reported Q4 and full year 2019 production and financial results from their Mexican operations.   ON FINANCING, Minera Alamos closed a private placement with Osisko for gross proceeds of $6M. (Santana project, Sonora). ON RESOURCES AND DEVELOPMENT, Starcore staked two new claims near its San Martin Mine in Querétaro. Prime Mining retained a consulting company to complete an estimate of the Au and Ag resources for its Los Reyes mine in Sinaloa. Capstone presented expansion and infill drilling results from its Cozamine mine in Zacatecas. Torex announced an updated resource estimate for its Media Luna project in Guerrero.  SilverCrest announced it plans to release in-fill and expansion drill results from six areas in Q1, 2020. Minera Alamos commenced construction of its Santana mine in Sonora. Southern Silver reported that metallurgical test work confirmed that a marketable Cu, Pb, Zn concentrate can be produce at its Cerro Las Minitas project in Durango. ON DEALS AND CORPORATE ISSUES, Sonoro Metals granted stock options to certain directors, officers, and consultants (Cerro Caliche project, Sonora). Radius signed a binding option agreement to acquire from a private family an 800 Ha property called Palmillas, which is adjacent to its Amalia project in Chihuahua. ON SOCIAL RESPONSIBILITY, The Mining Fund contributed in the road construction in the municipality of Tepehuanes, Durango. The Peñoles Community Center will give new human development workshop.

ON MEXICO ISSUES

  • The Mexican mining industry, the thirteenth largest in the world, is laying the groundwork for generating more investment in this important development engine. The Ministry of Economy works to have a financing model like the Canadian one. One of the government’s bets is that Mexico, with private investment, be a producer of rechargeable Li batteries for electric cars. José Francisco Quiroga Fernández, the Under Secretariat of Mining said in an interview, that USD $ 100B will be the value of annual Li sales in 2029, according to Bloomberg. 243M tonnes of Li are estimated to be in the Sonora deposits. At the moment that market is worth just over USD $22B; However, according to Bloomberg NEF estimates in 2023 it exceeds USD $40B, in 2025 it will be USD $60B and in 2030, USD $116B, that is to say almost 420% more than the global sales of 2019.
  • Mining activity has increased in Tamaulipas, according to the General Directorate of Mines. The state has 124 mining concessions in 19 of their municipalities. Profits produced by the mineral extraction of Pb, Zn, Cu, Au, Ag, serpentine, and stone aggregates exceed MXP $2,000M per year.

ON EXPLORATION

  • Silver Viper Minerals Corp., announced drilling results for the first three holes of the phase 2 from its Virginia project in Sonora. Significant results were encountered in hole LV19-209 with 3.22 g/t Au and 1,054 g/t Ag (1,280 g/t AgEq) over 1.8m, and other interval with 2.50 g/t Au and 27 g/t Ag (202 g/t AgEq) over 7m, including 5.27 g/t Au and 41 g/t Ag (410 g/t AgEq) over 3m; hole LV19-210 with 1.47 g/t Au and 216 g/t Ag (319 g/t AgEq) over 6m, including 6.32 g/t Au and 1,071 g/t Ag (1,513 g/t AgEq)over 1m; and hole LV19-211 with 13.39 g/t Au and 446 g/t Ag (1,384 g/t AgEq) over 4.5m, including 58.3 g/t Au and 1,923 g/t Ag (6,004 g(t AgEq) over 1m, and other interval with 1.37 g/t Au and 40 g/t Ag (136 g/t AgEq) over 9m. Phase II will consists of 5,000m in approximately 20 holes.
  • Aztec Minerals Corp., provided a 2020 outlook for its Cervantes project in Sonora. It plans to finalize the JV agreement with Kootenay in January 2020, and secure a senior partner to conduct an aggressive exploration program to advance both near surface oxide Au mineralization and deeper porphyry Au-Cu targets.
  • Radius Gold Inc., announced results from the recently completed third phase of drilling from its Amalia project in Chihuahua. Significant results were encountered in hole AM-DD19-18 with 12.5 g/t Au and 2,320 g/t Ag over 1.3m, and 1.4 g/t Au over 13.7m; and hole AM-DD19-19 with 0.5 g/t Au and 22 g/t Ag over 7.4m. Holes AM-DD19-20 and 21 only encountered anomalous Au-Ag values at the San Pedro fault. Radius reported that it has signed a binding agreement to acquire the 800 Ha Palmillas property from a private family which hosts high-grade epithermal Au-Ag mineralization and is adjacent to Amalia project.
  • Vizsla Resources Corp., discovered a new high grade vein at its Panuco property in Sinaloa. This vein consists of crystalline quartz with disseminated argentite and pyrite hosted in a strongly weathered and demagnetized diorite. Sampling on this 500m long vein returned 3.07g/t Au and 312 g/t Ag (557 g/t AgEq over 3.4m; 1.34 g/t Au and 263 g/t Ag (370 g/t AgEq) over 0.7m; and 0.5 g/t Au and 107 g/t Ag (147 g/t AgEq) over 1.1m. Vizsla plans to drill this recently discovered vein in late January/early February as one of the twenty targets that will be drilled throughout 2020.
  • Advance Gold Corp., commenced the third phase geophysical survey at its Tabasquena project in Zacatecas to delineate a new chargeability anomaly identified on the most southerly of the reconnaissance lines from the second phase survey, and to do a long NW-SE line cross cutting all of the previous E-W survey lines to obtain a much deeper penetration. This new survey will consist of nine E-W lines of 1,000m long, with line spacing of 120m, and one line NW-SE of 4,000m long.

ON MINING

  • Alamos Gold Inc., commenced operation at its satellite mine Cerro Pelon, located 3km from its Mulatos mining unit in Sonora. The new open pit mine, whose current life is three years, has a capacity of 4,500 tons per day, has an independent crushing train and the material is deposited in the Mulatos mine yards, taking advantage of the existing mining infrastructure and avoiding more capital costs.
  • Torex Gold Resources Inc., announced that it expects to produce between 420K to 480K Oz Au in 2020, at a total cost per Oz Au sold of USD $640-$670, and AISC of USD $900-$960 per Oz Au sold.
  • Great Panther Mining Limited, reported Q4 and full year 2019 production and financial results from their Mexican operations. At Topia mine, Durango, the company processed in Q4, 2019, 18,854 tonnes with grades of 0.81 g/t Au and 424 g/t Ag for a total of 267 Oz Au, 242.8K Oz Ag, 1.09M Lb Pb, and 1.45M Lb Zn (449.6K Oz AgEq), that brings a total of 79,257 tonnes processed in the full year 2019, with grades of 0.94 g/t Au and 392 g/t Ag for a total of 1,344 Oz Au, 938.6K Oz Ag, 4.39M Lb Pb, and 5.77M Lb Zn (1.78M Oz AgEq). At Guanajuato mine complex, the company processed in Q4, 2019 a total of 48,710 tonnes with grades of 2 g/t Au and 136 g/t Ag for a total of 2,640 Oz Au and 180.5K Oz Ag (394.6K Oz AgEq), that brings a total of 187,610 tonnes processed in the full year 2019 with grades of 2.26 g/t Au and 116 g/t Ag for a total of 11,588 Oz Au and 590.8K Oz Ag (1.5M Oz AgEq).
  • GoGold Resources Inc., announced Q4, 2019 production results from its Parral Tailings project in Chihuahua. The company produced 2,407 Oz Au and 379K Oz Ag (585K Oz AgEq).
  • McEwen Mining Inc., reported that its El Gallo mine in Sinaloa produced in 2019 a total of 16,333Oz AuEq from residual leaching of the heap leach pad.
  • Fortuna Silver Mines Inc., announced Q4 and full year 2019 production results from its San Jose mine in Oaxaca. It processed 273,066 tonnes of 1.5 g/t Au and 249 g/t Ag to produce a total of 12K Oz Au and 2M Oz Ag. In the full year 2019, the company processed 1,068,722 tonnes of 1.57 g/t Au and 252 g/t Ag to produce 48.9K Oz Au and 7.9M Oz Ag.
  • Avino Silver & Gold Mines Ltd., reported Q4, and full year 2019 production results from its Avino mine in Durango, including Avino, San Gonzalo and stockpiles. During the Q4 period, it processed 188,436 tonnes of 0.47 g/t Au, 51 g/t Ag, and 0.43% Cu to produce 2,032 Oz Au, 220.8K Oz Ag, and 1.39M Lb Cu (608.6K Oz AgEq). In the full year 2019, the company processed 789,660 tonnes of 0.41 g/t Au, 54 g/t Ag, and 0.4%Cu to produce 6,912 Oz Au, 958.8 Oz Ag, and 4.97M Lb Cu (2.4M Oz AgEq).
  • Coeur Mining Inc., announced Q4 and full year 2019 production and financial results from its Palmarejo mine in Chihuahua. In the period Q4, it milled 486,779 tonnes of 2.25 g/t Au and 159 g/ Ag for a total of 28.7K Oz Au and 2M Oz Ag at an average realized price per Oz Au and Ag of $1,238 and $17.28 respectively. For the full year 2019, the company milled 1,755,957 tonnes of 2.49 g/t Au and 151 g/t Ag to produce a total of 111.9K Oz Au and 6.76M Oz Ag at an average realized price per Oz Au and Ag of $1,220 and $16.23 respectively.

ON FINANCING

  • Minera Alamos Inc., closed a private placement with Osisko Gold Royalties Ltd., for gross proceeds of $6M. With this, Osisko has increased its shareholding of the company´s common share from 12.3% to 18.7%. Net proceeds will be used for building its Santana mine in Sonora.

ON RESOURCES AND DEVELOPMENT

  •  Starcore International Mines Ltd., staked two new claims near its San Martin Mine in Queretaro with upside potential for exploration and development. These two new claims are located to the west of the current mineral rights of the mine and cover approximately 710 Ha. The company will release an exploration plan for the first part of 2020.
  • Prime Mining Corp., retained a consulting company to complete a 43-101 compliant technical report that includes a n estimate of the Au and Ag resources for its Los Reyes mine in Sinaloa. Prime geologists have prepared a database of 493 historic drill holes to establish a new 43-101 compliant in-pit resource. The company expects to expands the size of the indicated resource presented by the former owner of 380.1K Oz Au at a grade of 1.73 g/t Au and inferred resources of 155.2K Oz Au at a grade of 1.49 g/t Au, and Ag resources of 6.3M indicated Oz Ag at a grade of 29 g/t Ag, and 3.6M inferred Oz Ag at a grade of 35 g/t Ag.
  • Capstone Mining Corp., presented drilling results from 6 expansion holes and 21 infill holes collared at its Cozamin mine in Zacatecas. This brings the total drilled to date to 150 holes of a 200 hole program, aiming to double the current reserve base. Significant drill intercepts were encountered in hole CG-19-S445 (step out) with 5.31% Cu, 0.15% Zn, and 79 g(t Ag over a true width of 6.3m, including 9.8% Cu, 0.26% Zn, and 139 g/t Ag over 2.8m; hole CG-19-S443 (step out) with 4.95% Cu, 0.15% Zn, and 104 g/t Ag; hole CG-19-S436 with 6.13% Cu, 0.24% Zn, and 98 g/t Ag over a true width of 1.7m; hole CG-19-S441(step out) with 3.35% Cu, 0.34% Zn, and 62 g/t Ag over a true width of 5.4m; hole CG-10-S455 (infill) with 7.65% Cu, 0.35%Zn, and 141 g/t Ag over a true width of 5.4m; hole CG-19-S437 (infill) with 1.94% Cu, 0.15% Zn and 45 g/t Ag over a true width of 19.3m, including 5.9% Cu, 0.33% Zn, and 134 g/t Ag over a true width of 2.80m; hole CG-19-S440 (infill) with 8.29% Cu, 0.25%Zn, and 133 g/t Ag over a true width of 4.9m, including 10.75% Cu, 0.32% Zn, and 166 g/t Ag over a true width of 3.4M; and hole CG-19-S444 (infill) with 3.31% Cu, 0.11% Zn, and 82 g/t Ag over a true width of 11.8m, including 7.89% Cu, 0.2%Zn, and 198 g/t Ag over a true width of 3.7m.
  • Torex Gold Resources Inc., announced an updated resource estimate for its Media Luna project in Guerrero. It reported an indicated resource of 12.6M tonnes of 3.27 g/t Au, 38 g/t Ag, and 1.16% Cu for a total of 1.32 M Oz Au, 15.3M Ag, and 322M Lb Cu (2.24M Oz Au Eq at a grade of 5.5 g/t AuEq). Inferred resources are 33.5M tonnes of 2.49 g/t Au, 24 g/t Ag, and 0.93% Cu for a total of 2.68M Oz Au, 25.5M Oz Ag, and 686M Lb Cu (4.56M Oz AuEq at a grade of 4.23 g/t AuEq).
  • SilverCrest Metals Inc., announced it plans to release in Q1, 2020 in-fill and expansion drill results from Babi Sur, Babi Vista Discover, Babicanora Norte, Babicanora, Babicanora FW, and Area 118 Discovery veins. Drill results will be incorporated into the updated resource to be released in the FS in H1, 2020. SilverCrest plans to conduct a 125,000m of exploration drill program focused on expanding measured and indicated resources to be considered for inclusion in the initial reserve estimate with the FS. In anticipation of a positive construction decision based on the FS, and the approval from the government of the change of use of soil permit, the company will commence to construct offices, warehousing, water works, and roads access improvements in H1.
  • Minera Alamos Inc., commenced the construction of its Santana mine in Sonora. It plans to provide construction updates during the 6-8 months construction period. During January and February, the company along with members of the community will begin to prepare the areas designed for the leach pads and holding pods, as well as initiate road construction within the planned mine area.
  • Southern Silver Exploration Corp., announced that the metallurgical tests work at its Cerro Las Minitas project in Durango confirmed that a marketable Cu, Pb, and Zn concentrate can be produce, increasing its value compared with earlier batch testing. These results are highlighted by a 94.7% Zn recovery grading 54.0% Zn in the Zn concentrate and grades of 5,504g/t Ag and 65.1% Pb in the Pb concentrate. Ag strongly partitions into the Pb and Cu concentrates for a combined 83.8% Ag recovery into concentrates that traditionally receive favourable payable terms.

ON DEALS AND CORPORATE ISSUES

  • Sonoro Metals Corp., granted stock options to certain directors, officers and consultants of the company to purchase an aggregate of 3,040,000 common shares.
  • Radius Gold Inc., reported that it has signed a binding agreement to acquire the 800 Ha Palmillas property from a private family which hosts high-grade epithermal Au-Ag mineralization and is adjacent to Amalia project in Chihuahua. During due diligence evaluation, Radius sampled outcrops and old adits obtaining encouraging results, such as 9.5 g/t Au and 73 g/t Ag over 4m, and 1.54 g/t Au and 58 g/t Ag over 10.5m. The company can earn a 100% interest in the Palmillas property by making staged payments over a period of five years for a total USD $350K, of which USD $200K is a final payment at the end of five years.

ON SOCIAL RESPONSIBILITY

  • With an investment of MXP $9M, and a direct benefit for 1,200 residents of the area, Governor of Durango, José Rosas Aispuro Torres, delivered road infrastructure works, in compliance with one more commitment to the inhabitants of Tepehuanes. The state executive said that this is a work that was carried out thanks to the resource of the Mining Fund, which made it possible to build eight thousand square meters of pavement with hydraulic concrete, directly benefiting the inhabitants of four colonies of the Municipal head.
  • The Peñoles Community Center, will give a new human development workshop. It also announced that another of the Peñoles Community Center workshops with the highest demand is that of teaching English, which students attend to receive instruction three days a week in both morning and evening hours.

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, an epithermal quartz vein displaying boiling textures in a prospect in Zacatecas, Mexico.  Photo by Miguel A Heredia.

The Mining and Exploration News in Mexico: Highlights on the Second Week of January, 2020

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By Jorge Cirett

During the 2nd week of the year (January 6th to January 12th, 2020), at least 34 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, The IPN is to offer Metallurgy Engineering at the Zacatecas campus. Conagua and Minera Peñasquito reached an agreement to promote the recovery of the Mazapil aquifer in Zacatecas. Some highlights on three major Mexican ore deposits were shared by Camimex: Metates, El Arco and La Verde. The Mexican president, Andrés Manuel López Obrador asserted the importance of mining in Mexico. In 2019 three Peñoles, Autlán and Frisco lost US$935 M in value on the stock exchange (BMV). Torex Gold and Leagold increased gold production on its mines in Guerrero. ON EXPLORATION, setting a weekly record, that we hope is a good omen for the industry in Mexico this year, eleven companies reported on exploration programs or results on their projects. In Sonora, Colibri disclosed surface sampling results from the Evelyin project; Tocvan and Colibri reported high Au and Ag values from the Pilar project near Suaqui Grande; Magna Gold released high grade Au results from surface mapping on several targets at the San Judas project. In Chihuahua, Kootenay Silver released high-grade Ag results from its Columba project. Sable Resources released low  grade but widespread Au results from the Vinata project. In Sinaloa, Vizsla Resources started drilling at its Pánuco project. In Durango, Gainey Capital has had successful meetings and communication with the local communities at Las Margaritas project. In Jalisco, GoGold Resources released results from five more holes at Los Ricos.  In Zacatecas, Pan American Silver is to continue the exploration, initial engineering and metallurgical tests at the La Colorada skarn ore deposit. Advance Gold commenced another drill hole at La Tabasqueña project. Alien Metals is submitting applications to drill its Los Campos and San Celso projects. ON MINING, US Antimony has begun production testing of the cyanide leach circuits at the Puerto Blanco mill in Guanajuato. Hecla Mining, Torex Gold, Leagold Mining and Endeavour Silver presented fourth quarter and full-year 2019 reports. Argonaut Gold informed its El Castillo mine in Durango is to cease operations in 2022. ON FINANCING, Silver Spruce closed the first tranche of a financing round. Agnico Eagle issued warrants in connection with the loan agreement with Orla Mining. Sierra Metals is to repurchase US$30 M of shares. ON RESOURCES AND DEVELOPMENT, Prime Mining updated on work at Guadalupe de Los Reyes, in Sinaloa. Sierra Metals updated the mineral resource estimate for the Bolivar mine, in Chihuahua. Discovery Metals released some high-grade results from its current drill program at Cordero, Chihuahua, where it is aiming to enhance the high-grade component of the deposit. Azure Minerals recommenced RC drilling the Loma Bonita gold deposit at its Alacrán project in Sonora.  ON DEALS AND CORPORATE ISSUES, Goldplay signed a LOI with First Majestic to acquire the Plomosas property in Sinaloa. Goldplay is to change name to GR Silver Mining. Oroco Resource Corp. is now officially the owner of 56.7% net interest (that can be increased to 81%) on the core concessions of the Santo Tomás project in Sinaloa. The company also holds the rights to 77.5% of the concessions surrounding the said core. ON SOCIAL RESPONSIBILITY. Peñoles to aid on the reactivation of agriculture in Naica. Peñoles organizes a robot building contest in Torreón. Endeavour Silver summarized its sustainability work for 2019.

ON MEXICO ISSUES

  • The Instituto Politécnico Nacional (IPN) is to offer the Metallurgy Engineering at its Zacatecas campus. Students are to spend one week of every month gaining experience on local mining units, from the third semester onward.
  • Conagua (Water Use Agency) and Minera Peñasquito (Newmont Goldcorp) reached an agreement to promote the recovery of the Mazapil aquifer. The agreement was reached in negotiation tables with several parties. The company is to forfeit its rights to extract 5 M cubic meters of water. During 2020 and 2021 Minera Peñasquito will invest 100 M pesos (US$5.25 M) on water access, drainage and cleaning in town, as well to aid on the bettering of irrigation and promotion of water re-usage in agriculture. In 2023 the company will also cede another 4 M cubic meters of water.
  • Highlights on three giant mining projects in Mexico: Metates, in Durango, holds reserves for 18.3 M Oz Au, 502 M Oz Ag, 4 B Lb Zn. Chesapeake’s 2016 pre-feasibility study (PFS) calls for a capital spending of $3.5 billion for a 90 K tonnes per day (tpd) operation, and a mine life of 27 years producing 445 K Oz Au. Sustained prices over $1,400 per gold ounce would help to kick start the operations. El Arco, in Baja California, is a giant copper deposit owned by Grupo Mexico. The deposit displays reserves of 2,700 M tonnes @ 0.4% Cu, 0.1 gpt Au. The deposit is to be mined by open pit, with concentrator and leaching operations to recover copper by electro winning, and is expected to produce 190 K tonnes Cu and 105 K Oz Au per year, once it is developed. La Verde, in Michoacan, owned by Solaris Resources and Teck, had a preliminary evaluation assessment (PEA) in 2018 with an investment of US$1.16 billion to produce 7.17 M tonnes of concentrate @ 26.7% Cu for 19 years, or 100 K tonnes Cu per year.
  • The Mexican president, Andrés Manuel López Obrador asserted the importance of mining in Mexico, on the strengthening of the country’s economy and the strong employment generation. He pointed that the ministers of environment and health are looking into the Rio Sonora spill (2014) and its consequences on the area inhabitants.
  • During 2019, mining companies like Industrias Peñoles, Autlán and Minera Frisco lost US$935 M in market cap on the Mexican Stock Exchange (Bolsa Mexicana de Valores, or BMV). The three companies saw a reduction on its operations, same that were reflected on its cash flow (EBITDA) and share price. During the year Peñoles lost US$861.4 M, Autlán US$39.8 M and Frisco US$34 M in value. On the other hand, Grupo Mexico registered an increment of US$4.617 billion on its value for the same period, due to good results on copper extraction and the expansion on its transport branch.
  • Gold production increased in 2019 for Torex and Leagold in Guerrero. In 2019 Torex produced 454,810 Oz Au at its El Limon-Guajes mine in Guerrero, compared with 354,000 Oz Au produced in 2018. Leagold produced 200,856 Oz Au at its Los Filos mine, in the same region.

ON EXPLORATION

  • Pan American Silver Corp. is planning to continue the exploration program, initial engineering and more metallurgical tests at the world class skarn mineralization discovered at La Colorada, Zacatecas. The inferred resources stand at 72.5 M tonnes @ 44 gpt Ag, 0.17% Cu, 2.0% Pb, 4.4% Zn, with the deposit open in several directions. In 2020 PAS is to drill 44,000 m to define and expand the inferred resources.
  • Colibri Resource Corp. disclosed rock chip sample results from its Evelyn project in Sonora. Highlighted results include 0.75 m @ 14.45 gpt Au, 16 gpt Ag; 1.5 m @ 12.45 gpt Au, 3 gpt Ag; 1.5 m @ 8.6 gpt Au, 5 gpt Ag; chip samples @ 22.3 gpt Au, 28 gpt Ag; 40.1 gpt Au; 3.12 gpt Au at the Cerro Rojo corridor and 2.97 gpt Au; 0.5 gpt Au, 0.4 gpt Au, 0.46 gpt Au; 2.74 gpt Au, 73 gpt Ag at the El Sahuaro corridor. Colibri is now planing to pursue a 1,000 m drilling campaign.
  • Advance Gold Corp. has commenced the second drill hole of the current drilling program at its Tabaqueña project in Zacatecas. This second hole is to test the large IP anomaly that underlies the intersection of 1.70 m @ 9.46 gpt of a previous drilling campaign. The second  hole on this campaign was collared 300 north of the location of the first one, with results pending. A second rig is being brought to the site to expedite drilling, now that the IP anomaly has been seen to correspond with a sulphide system.
  • GoGold Resources Inc. released results from five more drill holes at its Los Ricos project in Jalisco. Highlighted intersections include 22 m @ 0.22 gpt Au, 60 gpt Ag (1.01 gpt AuEq); 16.5 m @ 4.29 gpt Au, 336 gpt Ag (8.77 gpt AuEq); 5.2 m @ 1.10 gpt Au, 67 gpt Ag (2.01 gpt AuEq); 13.5 m @ 0.82 gpt Au, 215 gpt Ag (3.73 gpt AuEq); 17.4 m @ 0.77 gpt Au, 152 gpt Ag (2.80 gpt AuEq), including 6.1 m @ 2.07 gpt Au, 373 gpt Ag (7.05 gpt AuEq), 23.5 m @ 0.17 gpt Au, 43 gpt Ag (0.75 gpt AuEq). The holes were drilled north and south of the historical stopes to test the continuation of the structures.
  • Gainey Capital Corp, has had successful meetings and communication with the local communities at Las Margaritas project, Durango. “Discussions with State and Federal government representatives have been held to ensure that exploration on the property continues to the benefit of all stakeholders”.
  • Kootenay Silver Inc. released assay results from seven more drill holes completed at its Columba property in Chihuahua. Highlighted intervals comprise: 11.35 m @ 103 gpt Ag, including 2.28 m @ 405 gpt Ag; 23.0 m @ 60 gpt Ag, including 3.0 m @ 274 gpt Ag, including 1.35 m @ 494 gpt Ag; 7.05 m @ 114 gpt Ag, including 1.0 m @ 547 gpt Ag (the three intercepts in one hole); 10.0 m @ 175 gpt Ag, including 4.63 m @ 301 gpt Ag, including 1.5 m @ 628 gpt Ag; 4.9 m @ 194 gpt Ag, including 0.88 m @ 808 gpt Ag; 39.90 m @ 159 gpt Ag, including 7.45 m @ 650 gpt Ag and 1.15 m @ 919 gpt Ag, and 1.0 m @ 953 gpt Ag, and 1.0 m @ 527 gpt Ag, and 1.0 m @ 860 gpt Ag, and 1.8 m @ 715 gpt Ag. High Ag grades have been intercepted over 700 m of strike length on the F vein, and also 650 m from old workings on the B vein.
  • Sable Resources Ltd. provided an update on the ongoing drilling campaign at its Vinata property in Chihuahua. Six drill holes have been completed, amounting to 1,753 m of core, with results for 530 samples on the first five holes. Highlighted results comprise 51.3 m @ 0.28 gpt Au, including 30.3 m @ 0.44 gpt Au; 61.8 m @ 0.079 gpt Au, including 12.4 m @ 0.24 gpt Au; 198.25 m @ 0.063 gpt Au, including 8.9 m @ 0.24 gpt Au and 22.1 m @ 0.11 gpt Au; 30.45 m @ 0.035 gpt Au. Low grade gold argillic stratabound alteration in volcanic rocks is open in every direction, except to the East. The drilling program has been increased from 2,000 to 4,000 m to define the limits and grade on the argillic alteration, and also for the existence of a high-grade feeder with more classical epithermal textures.
  • Tocvan Ventures Corp. and Colibri Resource Corp. reported high Au and Ag values from two new showings that extend known mineralization at its Pilar project in Sonora. Highlighted results comprise 4.3 gpt Au, 172 gpt Ag, 1.1% Pb; 23.7 gpt Au, 116 gpt Ag; 4.4 gpt Au, 44 gpt Ag; 7.5 gpt Au, 42 gpt Ag; 0.5 gpt Au, 323 gpt Ag; 1.4 gpt Au, 2 gpt Ag; 2.2 gpt Au, 15 gpt Ag; 5.6 gpt Au, 84 gpt Ag, 1.7% Pb; 0.7 gpt Au, 20 gpt Ag; 9.3 gpt Au, 76 gpt Ag, 2.2% Pb. The new assays support additional areas to develop and define mineralization east and south east of the main areas that have seen over 17,700 m of drilling.
  • Alien Metals Ltd. is submitting applications for drill permits at its Los Campos and San Celso projects in Zacatecas. At Los Campos a six hole program that could grow to 47 holes and 3,250 m of drilling is planned. At San Celso a grid based drilling plan has been designed, with a total of up to 30 drill holes for 2,550 m, aiming to start with four to six key holes.
  • Magna Gold Corp. reported assay results from surface sampling at its San Judas project in Sonora. Several targets have been delineated: Santa Lucia-Las Palomas is a bulk mining target in sheared granite with quartz veins and stockworks, on which samples returned up to 0.5 m @ 26.4 gpt Au, 1.5 m @ 14.6 gpt Au, 0.7 m @ 12.9 gpt Au, 0.8 m @ 7.3 gpt Au, 1.0 m @ 6.14 gpt Au, 0.8 m @ 5.54 gpt Au; At San Martin there is a quartz stockwork in granite and gneiss that opens the possibility to a high volume bulk deposit, in an area 1,250 m x 750 m, on which samples returned up to 1.5 m @ 13.7 gpt Au, 2.0 m @ 9.20 gpt Au, 1.0 m @ 7.12 gpt Au, 1.0 m @ 6.7 gpt Au, 1.0 m @ 6.23 gpt Au, 2.0 m @ 5.16 gpt Au, 1.9 m @ 4.1 gpt Au; Represo Seco displays a high-grade sheeted and brecciated quartz system with three generations of quartz, two meters thick and exposed over 65 m, where samples returned up to 0.5 m @ 7.4 gpt Au, 1.9 m @ 6.0 gpt Au, 1.8 m @ 5.1 gpt Au; Cueva del León hosts argillic altered intrusive felsic rocks, with assays of up to 1.1 m @ 4.99 gpt Au, 1.0 m @ 4.28 gpt Au, 1.2 m @ 2.03 gpt Au, 1.5 m @ 1.9 gpt Au. All the areas are strongly anomalous in Pb (up to 1.45%), Zn (up to 0.35%) and Cu (up to 0.12%).
  • Vizsla Resources Corp. has started its drilling program at the Pánuco project in Sinaloa. The company plans to drill 14,500 m in 19 prospects, starting with the Vetas Animas corridor. Ten geologists are mapping and sampling in the district at the time being.

ON MINING

  • United Sates. Antimony Corp. reported that production testing of the cyanide leach circuit at the Puerto Blanco mill in Guanajuato has begun. “The Los Juarez mineralization is disseminated in jasperoid pipes that are present over a strike length of 3.5 kilometers, up to 1 kilometer in width, and are believed to be continuous below 400 meters”. “A global assay” of shallow drilling, sampling and mill testing is @ 1.09 gpt Au, 102 gpt Ag and 0.65% Sb (or 2.6 gpt AuEq), with individual assays of over 1 Oz/t Au, 47 Oz Ag/t and 10% Sb.
  • Hecla Mining Co. released preliminary results for the fourth quarter 2019, including figures from its Mexican operations. At the San Sebastian mine in Durango, 1.9 M Oz Ag, 15,673 Oz Au were produced during 2019, and 422.4 K Oz Ag,  3,897 Oz Au during the fourth quarter. With the Hugh Zone production included, AgEq production for the year is the same as 2018. The mill operated at an average of 479 tpd in 2019.
  • Torex Gold Resources Inc. announced 2019 production of 454,810 Oz Au (Q4 2019: 125,150 Oz) at El Limón Guajes mine in Guerrero. During the fourth quarter plant throughput averaged 12,120 tpd, with 1,060 tpd ore mined underground and 16,030 tpd ore mined by open pit, with a pit strip ratio of 7.3:1.
  • Leagold Mining Corp. reported 2019 production results, including figures from its operations in Mexico. At Los Filos, in Guerrero, quarterly production was 64,028, 44,896, 40,922 and 51,010 Oz Au for the Q1, Q2, Q3 and Q4 respectively, adding to 200,856 Oz Au in the year. The Los Filos Expansion Feasibility study was completed during the year, commencing expansion during the third quarter.
  • Argonaut Gold Inc. informed its mining unit El Castillo, in Durango, is to stop operations in 2022, after 12 year of work. These operations had $900 M of economic impact which includes investments, operation costs and $82 in taxes paid. To date the company has 347 employees and 249 contractors. Starting this month the crushing operations have been decommissioned, impacting on personnel numbers, and another reduction in the labor force will take place in April.
  • Endeavour Silver Corp. delivered production reports for the fourth quarter and full year 2019. Gold and silver production decreased 27% in the year, to 38,907 Oz Au, 4.02 M Oz Ag. The El Cubo mine suspended mining operations on Q4 2019, as reserves were exhausted. During the first quarter Endeavour plans to update the Pre-Feasibility Study (PFS) for Terronera, in Jalisco, and deliver an initial Preliminary Economic Assessment (PEA) in Parral, Chihuahua.Endeavour Prod 2019 Table1

ON FINANCING

  • Silver Spruce Resources Inc. closed the first tranche of its non-brokered financing on December 31, 2019, for gross proceeds of $237 K (Pino de Plata, Chihuahua).
  • Agnico Eagle Mines Ltd. announced the issuance of common share purchase warrants in connection with the loan agreement of December 2019 between Agnico and Orla Mining Ltd (Camino Rojo, Zacatecas).
  • Sierra Metals Inc. announced it has approved a plan to return up to US$30 M to shareholders. Sierra Metals intends to launch a substantial issuer bid pursuant to which the Company will offer to repurchase for cancellation up to US$15 M of its common shares from shareholders for cash (Bolivar and Cusi, Chihuahua).

ON RESOURCES AND DEVELOPMENT

  • Prime Mining Corp. updated on work at is Guadalupe de los Reyes project in Sinaloa, pointing its aim to become a gold producer. The acquisition was completed in August 2019, the due diligence concluded, a team was assembled, and an initial financing of CAD$8.7 M and USD$4.5 M of property payments were made, with only a payment of USD$1.5 M remaining, due October 2021. The long term land access agreement was signed and led to the implementation of 5,000 m of road cut and trenching that aided defining wider and longer structures than anticipated. The project is being evaluated at a mining rate of 4,500 tpd of mineralized material from five to seven pit locations, with Prime aiming to make the initial mining permitting submissions during 2020.
  • Sierra Metals Inc. updated the mineral resource estimate for its Bolivar mine in Chihuahua. The mineral resource update includes 13,698 m of infill drilling and 41,553 m of exploration drilling, with 11.63 M tonnes @ 0.95% Cu, 18 g/t Ag, and 0.24 g/t Au (or 1.16% CuEq) for a total of 244.3 M Lb Cu, 6.8 M Oz Ag, 90.4 K Oz Au (300.1 M Lb CuEq) as indicated resources, and 16.69 M tonnes @ 0.93% Cu, 17 g/t Ag, 0.30 g/t Au (or 1.16% CuEq) adding to 342.1 M Lb Cu, 9 M Oz Ag, 162.7 K Oz Au (428.1 M Lb CuEq) as inferred resources.
  • Discovery Metals Corp. announced results from the last four diamond drill holes at the Cordero project in Chihuahua. The program is designed to look for high grade and to test other areas of the 35,000 ha property. Highlighted intervals comprise: In hole 295, 81.82 m @ 63 gpt Ag, 0.35 gpt Au, 0.9% Pb, 0.9% Zn, including 4.1 m @ 517 gpt Ag, 1.32 gpt Au, 7.6% Pb, 5.7% Zn; 68.1 m @ 117 gpt Ag, 1.96 gpt Au, 1.7% Pb, 1.1% Zn, including 34.7 m @ 200 gpt Ag, 3.04 gpt Au, 2.9% Pb, 1.6% Zn, including 3.7 m @ 512 gpt Ag, 21.52 gpt Au, 6.9% Pb, 0.2% Zn; 11.5 m @ 284 gpt Ag, 0.88 gpt Au, 4.1% Pb, 2.8% Zn; In hole 296, 47.1 m @ 71 gpt Ag, 0.45 gpt Au, 1.0% Pb, 1.2% Zn; 61.6 m @ 42 gpt Ag, 0.39 gpt Au, 0.6% Pb, 0.4% Zn; in hole 294, 94.3 m @ 47 gpt Ag, 0.27 gpt Au, 0.7% Pb, 0.6% Zn; 10.8 m @ 93 gpt Ag, 0.46 gpt Au, 1.3% Pb, 1.2% Zn; in hole 293, 59.9 m @ 37 gpt Ag, 0.06 gpt Au, 0.9% Pb, 1.5% Zn; 4.3 m @ 111 gpt Ag, 0.10 gpt Au, 2.2% Pb, 2.9% Zn. “Discovery believes that definition of these veins has the potential to significantly enhance the high-grade component of the deposit”.
  • Azure Minerals Ltd. recommenced reverse circulation drilling (RC) at its Alacrán project in Sonora. The program is aimed at resource expansion of the Loma Bonita deposit, which currently extends for 600 m, and is up to 200 m in width and up to 100 m in depth. Early drilling is located east of two holes that intersected 47.2 m @ 2.79 gpt Au, 33, gpt Ag and 67.1 m @ 1.56 gpt Au, 23 gpt Ag. Drilling is also planned on Cerro San Simon, where previous drilling has intercepted up to 29.6 m @ 0.56 gpt Au, 27 gpt Ag; 12.6 m @ 0.37 gpt Au, 8 gpt Ag; 63.0 m @ 0.47 gpt Au, 27 gpt Ag.

ON DEALS AND CORPORATE ISSUES

  • Goldplay Exploration Ltd. entered into a non-binding Letter of Intent (LOI) with First Majestic Silver Corp. to acquire the 8,514 ha Plomosas silver project in Sinaloa. The terms of the transaction are expected to include a $100 K cash payment to First Majestic and a 2% NSR royalty to First Majestic, with 1% of the NSR subject to a buyback option for $1 M, and the issuance of 19.9% of the total issued common shares of Goldplay. In December 2019 Goldplay announced another LOI with Mako Mining Corp. on a significant land position in the region (San Marcial, Sinaloa).
  • Goldplay Exploration Ltd. announced name change to GR Silver Mining Ltd., effective January 13, 2020 (San Marcial, Sinaloa).
  • Oroco Resource Corp. registered at the Public Registry of Mining (Registro Público de Minería) the transfer of the seven core concessions of the Santo Tomás copper porphyry project to Xochipala Gold, S.A. de C.V., which is now the registered holder of 100% interest on these concessions. Oroco “holds an irrevocable option to acquire, via the ownership of Altamura Copper Corp., a net 56.7% interest in the collective 1,172.9 ha seven core concessions of the Santo Tomás Project in NW Mexico, and may increase that majority interest up to a net 81.0% interest with project investment of up to CAD$30 million”. The company also holds a 77.5% interest in 7,807.9 ha of mining concessions surrounding the previously mentioned core claims.

ON SOCIAL RESPONSIBILITY

  • Peñoles open to support the reactivation of agriculture in Naica, directly cooperating with the Naica ejido (communal land) by providing the pumping equipment and its maintenance. The water is to be extracted from the Naica mine, in care and maintenance for the last five years.
  • Peñoles organizes a robot building contest (FIRST robotics competition), supporting more than 1,500 students. The event is to take place in the Instituto Tecnologico de Monterrey, on the Torreon Campus.
  • Endeavour Silver summarized its sustainability work for 2019, which includes: 1) Guanacevi, Bolañitos and El Cubo received the annual “Socially Responsible Company” distinction from CEMEFI (Mexican Philanthropy Center); 2) Ceased operations at the El Cubo Mine in a collaborative manner with the employees, provided a social plan to mitigate risks and addressed community concerns resulting from the suspension of mining operations. 3) Made community donations including a recreational sports facility at El Cubo and partnered with the local Municipal Government to open a cultural community center at Bolañitos. 4) Carried out a Social Impact Study at Parral to identify and address important issues to the local community. 5) Continued to engage with the surrounding communities of the Terronera Project including San Sebastian Del Oeste, San Felipe De Hijar, and Santiago De Pinos, and hosted multiple events and programs during 2019 to which over 1,000 locals attended. 6) Invested in its scholarship program at Guanacevi, Bolañitos and El Cubo, benefitting over 100 students from high school and university levels. 7) The Company planted 52,000 trees to reclaim disturbed ground at all its mines and projects.

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

On the image below: sheeted quartz veining in an orogenic gold system of Oaxaca. Picture by Jorge Cirett.

IMG_0812

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

IMG_3901 - copiaBy Jorge Cirett

During the 52nd week of the year (December 23rd to December 29th, 2019), at least 11 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, Alamos Gold announced the Esperanza mine in Morelos is to be converted into a touristic attraction once decommissioned. In response to federal government criticism on the daily presidential conference, Grupo Mexico stated it dealt in due time and form with the 2014 leak on the Sonora river. The San Pedro mine decommissioning in San Luis Potosi has erected into a benchmark for the industry. Camimex corrected the federal government statement on how much terrain is concessioned for mining, from 113.8 million hectares (government) to 20.97 million hectares (corrected figure). ON EXPLORATION, Advance Gold informed on the mineralization intersected by the first hole into a chargeability anomaly at the Tabasqueña project in Zacatecas. ON MINING, No relevant news. ON FINANCING, Goldplay issued shares for $48 K to a drilling contractor for services provided.   ON RESOURCES AND DEVELOPMENT, Consolidated Zinc recommenced definition drilling at its Plomosas mine in Chihuahua. ON DEALS AND CORPORATE ISSUES, Dyna Resources announced a favorable final ruling on its legal battle with Goldgroup, which establishes its ownership of the San Jose de Gracia project in Sinaloa. ON SOCIAL RESPONSIBILITY. Minera Media Luna formalized the delivery of infrastructure works for US$100 K in Cocula, Guerrero. Minera Peñasquito realized a Christmas party on a primary school in Mazapil, Zacatecas.

ON MEXICO ISSUES

  • Esperanza Silver de México (Alamos Gold), which is developing the Esperanza project in Morelos, announced that once the project accomplishes its mine life it is going to be turned into a thematic park touristic attraction run by local inhabitants. Other touristic sites on former mines highlighted in the news release include the Mineral de Rayas, Mina el Nopal and Mina La Valenciana in Guanajuato.
  • Grupo México announced that it dealt in due time with the 2014 leak on the Rio Sonora. The announcement was made as response to the remarks made by the head of the Health Secretariat in the morning presidential conference on Monday 23 of December, conference in which he said that Grupo Mexico did not comply with its responsibility towards the region inhabitants. The company stated that the leak of an acidified solution from the Buenavista del Cobre tailings dam was treated strictly under all applicable law, and the operation of the Fideicomiso Río Sonora, under the instructions and supervision of Semarant, Profepa and Cofepris. It was added that there is no scientific proof tying health or environmental damages in the region, with water quality measurements even lower than those made ten or more years before the incident.
  • The decommissioning of the San Pedro mine in San Luis Potosí by Minera San Xavier has constituted itself into a national and international benchmark on its merits. The Plan Integral, Participativo e Incluyente de Cierre de Mina (Mine Closure Integral Plan) sticks to all regulations by PROFEPA and SEMARNAT. The Mine closure plan is compliant with the instructions of other international regulators, like the EPA in Nevada and California, and as well as the NOM-155-SEMARNAT-2007 that established the environmental protection norms for gold and silver leaching systems.
  • Camimex informed on a document called “Mitos y Realidades de la Minería” (Myths and Realities of Mining) that 25,221 current mining concessions cover 20 million 970 thousand hectares, or 11% of the Mexican territory. This is contrasted against the Economy Secretariat information presented on one of the Mexican president daily morning conferences, where it was stated that the ground under mining concessions reached 113.8 million hectares between 1998 and 2018. The president said that the granting of concessions is to be halted because the terrain already granted would suffice for thousands of years of work, also assuring that no mining concessions are to be cancelled and that all mining has to be done respecting the environment. According to Camimex there are 596 exploration projects with foreign capital, 99 in production, 50 in development, 439 under review and five in closure. It was also highlighted that 182 protected areas that represent 90.8 million hectares where no mining projects can be developed.

ON EXPLORATION

  • Advance Gold Corp. informed on the first hole drilled at a big chargeability anomaly at its Tabasqueña project in Zacatecas. An interval of 78 m of disseminated to massive sulfides associated with quartz was intercepted starting at 226 m of depth, and a second interval of 10 m of quartz veins with disseminated sulfides on the hosting andesites at 405 m of depth. .

ON MINING

  • No Relevant News.

ON FINANCING

  • Goldplay Exploration Ltd. made a final issuance of shares to a drilling contractor engaged under the shares for services previously announced on May 2019, for services valued at $48 K (San Marcial, Sinaloa).

ON RESOURCES AND DEVELOPMENT

  • Consolidated Zinc Ltd. announced that exploration and delineation drilling has recommenced at its Plomosas project in Chihuahua. Six holes are planned to extend the resource down dip and to the south, and seven holes for the Tres Amigos resource extension.

ON DEALS AND CORPORATE ISSUES

  • Dyna Resources Inc. informed that the 11th Federal Circuit Collegiate Court in Mexico issued a favorable final ruling that denies the Amparo challenge of Goldgroup Resources Inc., the subsidiary of Goldgroup Mining Inc., ruling that is not subject to further appeals. Dyna states the following four points are a consequence of the ruling: 1) The 2015 USD$48.28 M damages award against Goldgroup Resources Inc. is now final; 2) The lien against the shares of Dyna Mexico owned by Goldgroup Resources Inc. is now fully confirmed, final and enforceable; 3) Ownership of the shares of DynaMéxico currently held by Goldgroup Resources (~20%) are subject to the Lien against Goldroup shares; 4) DynaMexico owns 100% of the San José de Gracia project in Sinaloa.  

ON SOCIAL RESPONSIBILITY

  • Minera Media Luna formalized the delivery of infrastructure works valued at $1.93 M pesos (US$100 K) in Cocula, Guerrero. These investments included the rehabilitation of the Nuevo Balsas water deposit, the construction of a wall in Real de Limón and the rehabilitation of the road between Cocula and Nuevo Balsas.
  • Minera Peñasquito realized a Christmas party on the Ignacio López Rayón primary school in Mazapil, Zacatecas. The “Christmas road” will continue for two more weeks in which toys are to be delivered to children in the communities neighbouring the mine.

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

On the image below: San Felipe mine in Baja California. Picture by Jorge Cirett.

IMG_3901 - copia

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

chalcedonic quartz vein

By Miguel A Heredia

During the forty-nine week of the year (December 2nd to December 8th, 2019), at least 31 press releases were announced by companies working in Mexico, with nine commenting on Mexican issues, six informing on exploration results, four announcing financial rounds, four reporting on resources and developments of their properties, three communicating production and financial results, three disclosing deals and corporate issues and two discussing issues on social responsibility.  ON MEXICO ISSUES, Alejandro Tello, governor of Zacatecas State, obtained MXP $430M from the 2016-2017 Mining Fund for infrastructure work. Mexico´s mining production suffered a sharp decline in September. Fernando Alaniz, president of the Mining Chamber of Mexico (CAMIMEX), demanded for long-term certainty in Mexico for mining investment purposes. Fresnillo plc announced that it will allocate approximately USD $670M in new and sustainable projects.  Grupo Mexico announced an investment of USD $250M in the construction of a wind farm in Nuevo León. A Minister of the Supreme Court of Justice proposed to invalidate the changes applied in 2019 to the Mining Fund. CAMIMEX announced that mining companies claime tax return to have funds to invest. The Under Secretariat of Mining, Francisco Quiroga Fernández, confirmed there is a lithium deposit in Bacadéhuachi, Sonora.  ON EXPLORATION, In Baja California Norte, One World Lithium provided an update on its 4 holes drilling program being conducted at its Salar del Diablo project.  In Sonora, Colibri announced results from 100 samples collected at its Evelyn project. In Chihuahua, Radius and its JV partner Pan American Silver released results from the phase 3 drilling program at its Amalia project, and Valterra refined drill targeting on its Los Reyes project. In Jalisco, GoGold released drill results from eight holes collared at its Los Ricos project. In Oaxaca, Megastar identified multiple high potential epithermal targets at its Magdalena project. ON MINING, Santacruz reported Q3, 2019 production and financial results (Veta Grande, Zacatecas).  Alio Gold announced production and cost guidance for 2020. (San Francisco mine, Sonora). Consolidated Zinc advised that mining of its Plomosas mine in Chihuahua will be managed and operated by the company. ON FINANCING, San Marco revised its non-brokered flow through private placement on October9, 2019 (Chunibas project, Sonora). Tocvan Ventures announced that its shares are now listed on the Frankfurt Stock Exchange with the symbol TV3 (El Pilar project, Sonora). First Mining announced a flow through equity financing for gross proceeds of approximately to $2M (San Ricardo project, Sonora). ON RESOURCES AND DEVELOPMENT, Capstone reported that drilling results from its Cozamine mine in Zacatecas returned higher grades and wider intercepts than in current reserves. Starcore presented its updated NI 43-101 mineral reserves and resources at its San Martin mine in Queretaro. US Antimony provided an update on its Puerto Blanco mill in Guanajuato for its Los Juarez Au-Ag and Sb deposit in Querétaro. Mexus Gold announced that its new 500GPM Merrill Crowe Au recovery plant is complete and operational (Santa Elena mine, Sonora). ON DEALS AND CORPORATE ISSUES, San Marco retained Momentum Public Relations Inc., to assists with strategic business development activities (Chunibas project, Sonora). Argonaut provided an update on its San Antonio project permitting in Baja California Sur.  ON SOCIAL RESPONSIBILITY, Grupo Mexico, through its health and social care program called Dr Vagón, attended nearly 3,000 consultations in Delicias, Chihuahua. Peñoles, through its Community Center, informed about the planned activities to be performed in the coming Christmas season.

ON MEXICO ISSUES

  • Alejandro Tello, governor of Zacatecas State, obtained $430M from the 2016-2017 Mining Fund to be invested in 2010, in 41 infrastructure works in Zacatecas, such as construction and rehabilitation of roads, and sports infrastructure projects, among others.
  • Mexico’s mining production, suffered a sharp decline in September while the industry continue dealing with community relations, security and political challenges. Overall production fell 4.7% compared to the same month last year, with Au and Pb among minerals registering double-digit falls. Ag and Cu production fell 2.2% and 1.3%, respectively, with coke, sulfur and fluorite seeing the greatest decreases, 22.3%, 13.2% and 12.7%. Only the production of coal, Zn and non-coking plaster increased, by 7.2%, 2.0% and 1.3%. Part of the fall can be attributed to a blockade at the Peñasquito mine in Newmont Goldcorp, one of Mexico’s largest producers of Au, Ag, Pb, and Zn.
  • Fernando Alanis, president of the Mining Chamber of Mexico (CAMIMEX), demanded for long-term certainty conditions in Mexico for mining investment purposes. The mining sector has invested significant amounts in recent years, with 2012 being the year of greatest investment, which was approximately USD $8,043M. Mining investment has been falling and in 2016 it reached USD $3,752M, and the current year it is believed to have exceeded USD $2,600 M. “Mining is a sector that can generate a lot of investment in places that require many services and support from our entire sector and the only thing we ask is that there be certainty conditions in order to continue generating investment attraction”.
  • Fresnillo plc, announced that it will allocate USD $670 M in new and sustainable project, increasing its investment by 14.5% in 2020. “The capital investment forecast for new 2021 projects is expected to be around USD $475M, while by 2022, USD $415M, ”said Octavio Alvidrez, General Director of the company. By 2020, Fresnillo plans to extract 54M Oz Ag, 8% lower than expected by the end of 2019; while Au would be 857 K Oz. By 2021 the company expects to increase the extraction of Ag by 22%, as they expect to obtain 66 M Oz.
  • Grupo Mexico, reported an investment of USD $250M in the construction of a wind farm in the state of Nuevo León, México. The Fenicias project will have a production capacity of 168 megawatts and will be interconnected with the National Electric System through the construction of a transmission line of more than 60 km in the area of ​​Reynosa, in the state of Tamaulipas. “Grupo México will increase its power generation capacity to almost 800 megawatts, becoming one of the main power generators in the country,” said the company, in the release. The commercial operation of this wind farm is planned to begin in early 2021.
  • Industrias Peñoles S.A.B. de C.V., announced that it continues growing and now there are already 31,500 workers. The General Director of Peñoles, Fernando Alanís Ortega, also confirmed that all of its 2019 production is sold.
  • A Minister of the Supreme Court of Justice, proposed to invalidate the changes applied to the Mining Fund in 2019. The Mining Fund was reformed in the Revenue Law of the Federation of 2019, removing from the states and municipalities the resources raised by the extraordinary right to mining created in 2014. This reform caused 33 controversies, one of the Chihuahua Executive, which is the first on the list, and 32 of municipalities of five states. Until 2018, the collection of mining rights was divided into two exchanges: 22.5% was distributed to all states and Mexico City as a federal share -which in 2018 was MXP $2,605M, and the remaining 77.5 percent was sent to the Mining Fund, which accumulated MXP $11,325M from 2014 to 2017. Municipalities received 62.5% of the Mining Fund for public works premises, which in the case of Chihuahua alone included 330 projects in four years. After the 2019 reform, the money went to the Ministry of Economy (SE) with the idea of ​​applying them for the Welfare Tandas, a program of the current government that gives credits to micro entrepreneurs for up to MXP $15K. In 2020, the changes to the Mining Fund will be applied in the Federal Law of Rights, which is where it has existed since its creation. Now, the majority of Morena in Congress determined that 85 % of the money will go to the SEP for the construction of schools, 10% to the federal government for other works, and 5% to the SE to supervise the mining activity, without funds being provided for local governments of mining areas, nor to distribute funds to its entities.
  • The Mining Chamber of Mexico (CAMIMEX), said that companies in the mining sector are claiming the return of taxes to maintain their cash flow and have funds to carry out new investment projects. In a statement, CAMIMEX said that, being highly exporting companies, they always get a balance in favor when they file their returns with the Tax Administration Service (SAT).
  • The Under Secretariat of Mining, Francisco Quiroga Fernández, confirmed the existence of a lithium deposit in Bacadéhuachi, Sonora, which will begin production in 2022. Sonora is the main mining state in the country and with the discovery of this site reinvents itself, since in the world there is a race to develop lithium and now the state is within that future.

ON EXPLORATION

  • One World Lithium Inc., provided an update on its 4 holes drilling program being conducted at its Salar del Diablo project in Baja California Norte. To date, hole DDH-1 has been collared to a depth of 650m, and hole DDH-2 has reached 590m with a planned depth of 650m. Hole 3 will commence soon at a location where there is evidence of historic and currently hydrothermal activity, which can be a source of lithium. Depending on the hole DDH-3 results, a fourth hole will be drilled to complete the planned drilling program.
  • Colibri Resource Corporation, announced results from 100 samples collected at its Evelyn project in Sonora. Of the samples taken, 30 returned >0.1 g/t Au, 24 returned > 0.2 g/t Au and 12 returned > 0.75 g/t Au. With the recent mapping and sampling program conducted at the Evelyn project, the compnay has identified two separate NW corridors with favourable structures containing Au: Cerro Rojo and El Sahuaro areas. Rock-chip sampling from these areas have returned encouraging values ranging from 0.5 up to 73.4 g/t Au and correspond with anomalous Au soil samples taken previously. Colibri is planning to conduct a 1,000m drilling program to test these target areas.
  • Radius Gold Inc., and its JV partner Pan American Silver Corp., released results from the first 2 diamond drillholes of the phase 3 drilling program at its Amalia project. Hole AMDD19-016 encountered 1.53 g/t Au and 41 g/t Ag over 120m (75m of true width), related to disseminated fine black sulphides and sulphide veining in ignimbrite rhyolites and transitioning to intense silicification, stockwork veining, and breccias. Hole AMDD19-17, was collared 100m north of hole AMDD19-016 and intersected with anomalous values up to 2.26 g/t Au and 23 g/t Ag over a section of 30m wide silicified fault breccia, but no potentially economic mineralization was encountered. Drilling is ongoing at Amalia project, and results will be released upon they become available.
  • Valterra Resource Corporation, refined drill targeting on its Los Reyes Cu-Au project in Chihuahua, using the recently completed surface sampling along an 800m strike length of a Cu-Au skarn and a 4.8 line km 2D/3D DCIP geophysical program. 22 out of 28 samples returned Cu values > 1% at an average grade of 3.1% Cu and up to 5.9% Cu. The anomalous samples returned up to 0.57 g/t Au, 25 g/t Ag, 0.47% Mo, and 1.7% Zn. The geophysical survey identified a strong conductivity anomaly along the intrusive contact which projects more than 400m through four of the five main areas of historic old workings and defines the main target for test drilling. Conductivity and chargeability anomalies were also identified in all the survey lines and are spatially associated or adjacent to areas of known historical surface mineralization. “The Company is initially targeting a 5-10M tonnes, shallow high grade Cu-Au resource localized along the strike length of the exposed skarn zone. Further work will examine the deeper potential of the mineralizing system including a potential Porphyry Cu-Au source for the shallow high-grade mineralization.
  • GoGold Resources Inc., released drill results from the last eight holes collared at its Los Ricos project in Jalisco, of which four were drilled in San Juan Area, two in the Main Area, and two along the south edge of the Main Area. Highlights of the holes collared in the San Juan Area include hole LRGG-19-073 with 1.12 g/t Au and 117 g/t Ag (2.67 g/t AuEq or 200 g/t AgEq) over 33.5m, including 3.01 g/t Au and 184 g/t Ag (5.47 g/t AuEq or 410 g/t AgEq) over 9.5m, and including 1.81 g/t Au and 291 g/t Ag (5.70 g/t AuEq or 427 g/t AgEq) over 3.0m; hole LRGG-19-76 with 0.73 g/t Au and 123 g/t Ag (2.38 g/t AuEq or 178 g/t AgEq) over 38.5m, including 1.70 g/t Au and 260 g/t Ag (5.17 g/t AuEq or 387 g/t AgEq) over 5.8m, and including 1.58 g/t Au and 220 g/t Ag (4.51 g/t AuEq or 338 g/t AgEq) over 6.0m; and hole LRGG-19-77 with 1.03 g/t Au and 94 g/t Ag (2.29 g/t AuEq and 172 g/t AgEq) over 26.0m, including 4.28 g/t Au and 241 g/t Ag (7.49 g/t AuEq or 562 g/t AgEq) over 4.3m. In the Main Area, hole LRGG-19-065 encountered 0.23 g/t Au and 84 g/t Ag (1.35 g/t AuEq or 101 g/t AgEq) over 13.1m, including 0.50 g/t Au and 155 g/t Ag (2.57 g/t AuEq or 192 g/t AgEq) over 5.4m. To date, GoGold has completed 90 diamond drill holes totaling 15,140m.
  • Megastar Development Corp., identified multiple potential epithermal targets at its Magdalena project in Oaxaca. During the first mapping and sampling exploration campaign conducted at the property, 277 rock chip samples were taken and the geologist found characteristics of a significant epithermal system with 59 rock samples returning above 0.2 g/t Au, 24 samples returning above 0.5 g/t Au, 12 samples returning above 1 g/t Au, and 2 samples returning above 3 g/t Au. “Strong epithermal alteration is found along a minimum 1.7 km long E-W structural trend that shows sheeted quartz vein sets and silicification in conjugate NNW to NNE-NE structural sets. The setting is the eastern structural margin of a caldera where it intersects a prominent regional E-W structural trend. Approximately 4,100 square meters of silicified bladed calcite textures have been mapped within a larger area of strong and sheeted quartz veining. This main zone, along with other prominent outliers, constitutes easy-to-access and drill-ready targets”.

ON MINING

  • Santacruz Silver Mining Ltd., reported Q3, 2019 production and financial results from its operations. At Zimapan mine, Hidalgo, the company milled 82,242 tonnes to produce 606.6K Oz AgEq at cash cost of $41.89 per ton, or $16.32 per Oz AgEq produced, and an AISC of $18.56 per Oz AgEq produced. At Veta Grande mine, Zacatecas, it milled 43,999 tonnes to produce 214.3K Oz AgEq at a cash cost of $47.67 per tonne or $19.79 per Oz AgEq produced, an AISC of $26.77 per Oz AgEq produced. At El Rosario mine, San Luis Potosi, Santa Cruz milled 22,048 tonnes to produce 132K Oz AgEq, at cash cost of $82.10 per tonne or $27.96 per Oz AgEq produced, and an AISC of $38.63 per Oz AgEq produced. Consolidated numbers for its mining operations were 148,289 tonnes milled to produce 952.8K Oz AgEq, at cash cost of $49.58 per tonne or $18.52 per Oz AgEq produced, and an AISC of $22.83 per Oz AgEq produced. Consolidated mining operations generated a gross profit of $102 including gross profit from Zimapan of $992, and gross losses from Rosario and Veta Grande of $672 and $511 respectively plus mine services gross profit of $293.
  • Alio Gold Inc., announced production and cost guidance for 2020. It expects to produce between 12K-15K Oz Au at cash cost of USD $1,700-$1,800 per Oz.
  • Consolidated Zinc Limited, terminated its mining contractor and advised that mining of its Plomosas mine in Chihuahua will be managed and operated by the company in order to significantly reduce its mining cost. “The Company is confident it can deliver improved performance from the mine before the end of December. During this short transition period processing ore and concentrate from existing stockpiles will continue to provide revenue”.

ON FINANCING

  • San Marco Resources Inc., revised it non-brokered flow through private placement announced on October 9, 2019 It now consists of 266,667 shares at a price of $0.15 each (Chunibas project, Sonora).
  • SilverCrest Metals Inc., announced a bought deal financing for aggregate gross proceeds of CAD $80M. Net proceeds will be used to continue the exploration and development of its Las Chispas project in Sonora.
  • Tocvan Ventures Corp., announced that its shares are now listed on the Frankfurt Stock Exchange (FSE) with the symbol TV3. The Company expects that the FSE listing will help increase trading liquidity and facilitate investment in the Company by institutional and retail investors across Europe (El Pilar project, Sonora).
  • First Mining Gold Corp., announced a flow through equity financing for gross proceeds of approximately $2M (San Ricardo project, Sonora).

ON RESOURCES AND DEVELOPMENT

  •  Capstone Mining Corp., reported that the infill drilling program at its Cozamin mine in Zacatecas returned higher grades and wider intercepts than in current reserves. 20 infill drill holes were collared, bringing the total drilled to date to 138 holes of a 200 holes program. Significant drill interceptions were encountered in hole CG-19-S434 with 2.2% Cu and 44 g/t Ag over a true width (TW) of 20.3m, including 5.28% Cu and 97 g/t Ag over a TW of 5m; hole CG-19-S427 with 4.01% Cu and 67 g/t Ag over a TW of 6.1m; hole CG-19-S429 with 1.49% Cu and 51 g/t Ag over a TW of 18.5m, including 1.92% Cu and 70 g/t Ag over a TW of 5.5m; hole CG-19-S433 with 1.27% Cu and 31 g/t Ag over a TW of 24.6m, including 2.99% Cu and 62 g/t Ag over a TW of 7.1m; hole CG-19-S426 with 3.15% Cu and 58 g/t Ag over a TW of 12.2m, including 6.97% Cu and 121 g/t Ag over a TW of 4.1m; and hole CG-19-S418 with 3.98% Cu and 84 g/t Ag over a TW of 8.4m.
  • Starcore International Mines Ltd., released its updated Ni 43-101 mineral reserves and resources at its San Martin Mine in Queretaro. Total proven and probable mineral reserves and resources as September 30, 2019 are 1,434,308 tons of 2.04 g/t Au and 27 g/t Ag for a total of 109.1K Oz AuEq contained. Total inferred and indicated mineral reserves and resources are 1,713,120 tons of 1.91 g/t Au and 19 g/t Ag for a total of 118.4K Oz AuEq contained. The total of Oz AuEq contained in both categories is 227.5K.
  • US Antimony Corporation, provided an update on its Puerto Blanco mill in Guanajuato for its Los Juarez Au-Ag and Sb deposit in Querétaro. It could be ready for cyanide leach testing by the end of December.
  • Mexus Gold US, announced that its new 500GPM Merrill Crowe Au recovery plant is complete and operational. It is capable of handling 3K tonnes a week mining operation and will allow for future expansion as well.

 ON DEALS AND CORPORATE ISSUES

  • San Marco Resources Inc., retained Momentum Public Relations Inc., to assists with strategic business development activities. The agreement with Momentum has a term of 12 months at $8,500 per month (Chunibas project, Sonora).
  • Argonaut Gold Inc., provided an update on its San Antonio project permitting in Baja California Sur. It announced that SEMARNAT issued a ruling to not approve the updated Environmental Impact Assessment (MIA in Spanish), citing that the MIA is non-compatible zoning based on a revised, 2018 zoning plan filed by the Municipality of La Paz. The Company is reviewing all of its options from seeking an amendment to the La Paz 2018 zoning plan based upon the July 2016 supreme court ruling, submitting a revised MIA and legal options.
  • Excellon Resources Inc., provided an update on the ongoing legal action with respect of the La Antigua mining concession included in Excellon´s acquisition of Silver Eagle Mine Inc. in 2009, which includes a portion of the historic mineral resource at Miguel Auza in Zacatecas. Silver Eagle, the Plaintiff, sued Excellon for non-compliance with the agreement and specifically for not operating the Miguel Auza Mine and the Court granted the Plaintiff an award of approximately $23M predominantly in damages for the Miguel Auza mine not being in operation. “Excellon expects this decision to be reversed and rationalized in the federal court system. In the interim, it does not expect any impact on its ongoing business activities”.

ON SOCIAL RESPONSIBILITY

  • Grupo Mexico, through its health and social program called Dr Vagón (the health train), attended nearly 3,000 consultations last week in Delicias, Chihuahua. Specialist of the health train performed 256 mammograms or tests for the detection of breast cancer, Pap smears, and placed the Intra Uterine Device (IUD) in women. Apart from the mastographs and Pap smears, audiometries and vasectomies were performed on men.
  • Industrias Peñoles S.A.B. de C.V., through its Community Center, informed about the planned activities to carry out in the coming Christmas season. Dolores Herrera, coordinator of the center, also announced a proposal for the realization of the Human Development workshop, promoted by the National Association for Personal Improvement AC (ANSPAC), with duration of a year and a half.

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, chalcedonic quartz vein in a low sulphidation epithermal system from a prospect in Durango, Mexico. Photo by Miguel A Heredia.

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

Quartz blade texture in an epithermal vein

By Miguel A Heredia

During the forty-seven week of the year (November 18th to November 24th, 2019), at least 28 press releases were announced by companies working in Mexico, with seven commenting on Mexican issues, five announcing financial rounds, five discussing issues on social responsibility, four reporting on resources and development of their projects, three communicating production and financial results, three informing on exploration results, and one disclosing deals and corporate issues.  ON MEXICO ISSUES, The president of México, Andrés Manuel López Obrador, hinted restructuring mining regulations.  The director of the Mining Fund of the Secretariat of Economy approved MXP $103.6M to be distributed in seven states. The Under Secretariat of Mining, Francisco Quiroga announced that the Mining Fund will continue being delivered to the Municipalities where it is generated, as it was established in the Official Gazette of the Federation (DOF). Newmont Goldcorp and Ejidatarios signed an agreement to solve conflict in Peñasquito.  The director of The National Institute of Anthropology and History (INAH) in Morelos spoke in favor of the construction of a social and cultural development without demerit of mining operations at the Esperanza deposit (Cerro Jumil). The Mexican Government begun the rescue of 63 miners who were trapped in the explosion of the Pasta de Conchos coal mine in February 2006.The plurinominal Senator Napoleón Gómez Urrutia again appeared in the spotlight: various voices asked for his lawlessness to appear before the courts for his responsibility in the Pasta de Conchos tragedy. It also faces great opposition for its initiatives regarding outsourcing. ON EXPLORATION, In Sonora, Colibri received geological mapping study results from its Evelyn project. In Chihuahua, Kootenay reported drill results from the last ten holes drilled at its Columba project. In Jalisco, GoGold released drill results from 10 holes collared at its Los Ricos project. ON MINING, Mexus Gold announced that Au recovery continues at its Santa Elena mine in Sonora. Endeavour announced that mining operations on its El Cubo mine in Guanajuato will cease on November 30, 2019. Consolidated Zinc reported October 2019 production results from its Plomosas mine in Chihuahua.  ON FINANCING, Galore closed its second and final tranche of a non-brokered private placement for gross proceeds of CAD $92,634, for a total financing of CAD $279,816 (Dos Santos project, Zacatecas). Orex closed a non-brokered private placement for gross proceeds of CAD $800K (Sandra-Escobar project, Durango). San Marco closed a non-brokered private placement to raise gross proceeds of $448,600 (Chunibas project, Sonora). Vangold provided an update on its private placement and anticipated the closing of a third and final tranche this month for gross proceeds of $707,500 (El Pinguico project, Guanajuato). McEwen announced pricing of USD $50M public offering (El Gallo, Sinaloa). ON RESOURCES AND DEVELOPMENT, Premier Gold reported drilling results and announced that it has extended high grade mineralization at its Mercedes mine in Sonora. SilverCrest announced its best drill hole to date at its Las Chispas project in Sonora. Torex Gold extended mineralization down-dip at the Sub-Sill deposit at its Limon-Guajes mine complex in Guerrero. Impact Silver provided and update on its operations at its Zacualpan Mining District, in the State of Mexico, and reported the presence of native Ag at its Guadalupe mine. ON DEALS AND CORPORATE ISSUES, Discovery Metals announced that is already trading on the OTXQX Best Market in the USA (Cordero project, Chihuahua).  ON SOCIAL RESPONSIBILITY, IMMSA donated 60K plants, (40K forest trees and 20K ornamental plants) to the municipal government of San Luis Potosi. Compañía Minera Cuzcatlán (Fortuna Silver) boosted “Access to Education” through a scholarship program. The Red Cross delegation of Torreón, Coahuila recognized Peñoles as a socially responsible company for donations and all the support received every year. Peñasquito launched the program “Together We Leave Legacy”. Ternium allocated USD $60M to sustainable plan in Monterrey.

ON MEXICO ISSUES

  • Andrés Manuel López Obrador, President of México, hinted a possible modification to the mining regulations, deepening the uncertainty that weighs on Mexico´s mining sector. The Camimex (mining industry chamber) has repeatedly expressed concern about possible changes in policies that aim to reduce spending. While mining investment is forecast to USD $5.3B this year, this 7% increase is the smallest since 2016. “It requires a public policy that builds trust among investors,” the chamber said recently.
  • The Secretariat of Economy, through the Director of the Mining Fund approved MXP $103.6M to several states. The mining fund designated MXP $43.2 for Durango, MXP $26.5M for Sonora, MXP $14.9M for Zacatecas, MXP $10.4M for Chihuahua, MXP $5M for Aguascalientes, MXP $2.8M for San Luis Potosi, and MXP $751K for Hidalgo. In addition, informed that approved MXP $10.4M for paving projects, public lighting and a sports field in the Municipalities of Santa Bárbara, Ascensión and San Francisco del Oro, Chihuahua. The director Gómez Leyja listed the different support for responsible mining for the “progress and well-being of the benefited municipalities”. Municipalities and the State of Chihuahua began this year constitutional controversy against the Government of Mexico over the cancellation of the Mining Fund. The federal government has gradually released amounts, although in 2018 there were 300 million pesos distributed among 23 municipalities of Chihuahua
  • The Under Secretariat of Mining, Francisco Quiroga, announced that Mining Fund will continue being delivered to the municipalities where it is generated, as it was established in the Official Gazette of the Federation (DOF). “The Federative Entities, Municipalities and Demarcations, will be the executing agencies of the federal public resources transferred to them, once the proposed physical investment projects have been approved by the Regional Committee,” dictates article twenty-seventh of the new agreement. This news is a relief for the sector, since a redistribution of the resources of the Fund that sought to allocate capital to educational infrastructure in the country had been approved, depriving communities of the full range of direct benefits that the presence of a mining operation Given this initiative, various voices in the sector asked the President of Mexico not to leave the mining municipalities out, and the Governors of Sonora, Durango, Chihuahua, Zacatecas and Guerrero also joined the lobby. Until 2018, a collection of MXP $ 18,000 M is calculated to integrate the Mining Fund, and this year an estimated amount of MXP $ 3,200M is estimated. One of the premises of the new guidelines of the Mining Fund is that it operates with greater transparency and efficiency. Until 2018, the Fund was operated by the Ministry of Tourism and Urban Development, now the application and administration is in the hands of the Ministry of Economy.
  • Newmont Goldcorp Corporation, signed an agreement with the Mazapil Ejidatarios to solve conflict in Peñasquito. The six agreements conceived in the Ministry of the Interior at the Federal level detail that the Ejidatarios of Cedros and transport contractors agree not to block the mine operation and Newmont Goldcorp commits not to suspend operations and avoid affecting 60K people who depend on mine operation. It also was agreed to install a mechanism for the analysis, discussion and taking of agreements regarding pending issues, such as the shortage of water in the Cedros aquifer, as well as the compensation of the damages of a possible environmental affectation. Other points to consider are the review of the possibility of incorporating a new transport contract under the modality of “individual contracts” for the communities of Mazapil, Cedros, Verjel, and Cerro Gordo, and finally look for the possibility of incorporating more personnel transport routes in local communities.
  • The Director of The National Institute of Anthropology and History (INAH) in Morelos, spoke in favor of the construction of a social and cultural development without demerit of mining operations at the Esperanza deposit (Cerro Jumil), as long as it is assured by the mining company (Alamos Gold) that there would be no affectations to the historical heritage of that place and having as its center of importance the archaeological zone of Xochicalco. The polygon protection of Xochicalco is clear and defined. However, the Director of INAH acknowledged that the subject is waiting for answers. INAH does not authorize mining projects. INAH is not responsible for reviewing and approving mining projects, which is another area of competence.
  • The Mexican Government, begun the rescue of 63 miners who were trapped in the explosion of the Pasta de Conchos coal mine in Coahuila on February 2006. The Mexican Geological Service, along with a group of experts from Germany, China, USA and Australia, initiated the rescue and the first steps corresponded to “studies of gas, water, soil mechanics that will allow to know well the underground conditions” in the Pasta de Conchos mine.
  • The plurinominal Senator Napoleón Gómez Urrutia again appeared in the spotlight: various voices asked for his lawlessness to appear before the courts for his responsibility in the Pasta de Conchos tragedy. It also faces great opposition for its initiatives regarding outsourcing. The National Democratic Union of Mining, Metallurgical, Steel and Related Workers asked in a statement to reopen the file of Pasta de Conchos to endorse Gómez Urrutia responsibilities, as it is stated, the senator endorsed the conditions of the mine days before the tragedy, so it must be judged for negligence. On the other hand, the TUCONAP, an acronym for “Todos Unidos against Napoleón Gómez Urrutia”, a group that seeks to annul the Senator’s plans to criminalize the labor figure of outsourcing, has emerged. Various labor experts consider that “regularizing” outsourcing (as Urrutia calls it, which in turn coordinates the Senate Labor Commission) would seriously affect investment and jobs in Mexico, in addition to causing severe damage to the country’s economy.

ON EXPLORATION

  • Colibri Resource Corporation, received structural mapping results of a study carried out on its Evelyn project in Sonora. This study was conducted on two main areas named Cerro Rojo and the El Sahuaro, and both display similarities to the structure, mineralization characteristics, and presence of certain indicator minerals found at La Herradura Mine operated by Fresnillo plc, and located about 25km from the Evelyn project. The study identified seven exploration targets for follow-up within these two main areas of Cerro Colorado and El Sahuaro. A total of 93 chips, channel and selective samples were collected and will be reported upon their receipt.
  • Kootenay Silver Inc., reported drill results from the last ten holes drilled at its Columba project in Chihuahua on five different veins. Significant drill intersections were encountered in hole CDH-19-022 with 244 g/t Ag over 6.25m, including 373 g/t Ag over 1.5m on D Vein; hole CDH-19-21 with 187 g/t Ag over 1.2m in D Vein and 51 g/t Ag over 23.8m, including 191 g/t Ag over 2m in the footwall  of the D Vein; hole CDH-19-025 with 105 g/t Ag over 7.6m, including 32 g/t Ag over 98.1m in stockworks and breccias of the J Vein; hole CDH-19-27 with 115 g/t Ag over 6.56m in J Vein; and hole CDH-19-28 with 72 g/t Ag over 14m, including 95 g/t Ag over 10m in stockwork of the J Vein. “Drilling not only confirmed intercepts of high-grade Ag, but also potential bulk-minable Ag mineralization with significant exploration potential remaining along strike and depth on several veins”.
  • GoGold Resources Inc., released drill results from 10 holes collared at its Los Ricos project in Jalisco, being 4 holes in the Main Zone, 4 holes in San Juan area, and 2 holes in the southern area of the property. Highlights of the holes collared in the Main Zone include hole LRGG-19-056 with 05 g/t Au and 186 g/t Ag (2.97 g/t AuEq or 223 g/t AgEq) over 26m, and hole LRGG-19-063 with 0.53 g/t Au and 85 g/t Ag (1.67 g/t AuEq or 125 g/t AgEq) over 24.5m. In San Juan area, highlights include  hole LRGG-10-069 with 1.11 g/t Au and 103 g/t Ag (2.48 g/t AuEq or 146 g/t AgEq) over 16.3m. In the southern area of the property, hole LRGG-19-068 encountered 0.92g/t Au and 161 g/t Ag (3.07 g/t AuEq or 230 g/t AgEq) over 7.8m.  “The core drilling campaign is focused on defining the mineralized halo around the historical high grade ore shoots as defined by the underground workings and the 65 historical RC drill holes on the property. The program has now been expanded for additional testing along 3.2 km of the Los Ricos mineralized zone”.

ON MINING

  • Mexus Gold US, reported that Au recovery continues at its Santa Elena mine in Sonora. Initial leaching results showed 0.48 g/t Au but slowed due to improper pH control. To solve this issue, Mexus installed an automatic pH/cyanide aeration control pumping system, and now is working properly. This recent correction will allow for a substantial increase in Au recovery from the 1.8 g/t Au head ore.
  • Endeavour Silver Corp., announced the cessation of mining operations on its El Cubo mine, Guanajuato on November 30, 2019 due to exhaustion of reserves. The company reported that milling operation will continue for a week until the ore stock has been processed and the mill cleaned for concentrates. All employees will be laid off and the mine will be placed on short term care and maintenance. Suspension costs were estimated in $3.5M-4.0M, including final severance payments for all employees.
  • Consolidated Zinc Limited, reported October 2019 production results from its Plomosas mine in Chihuahua. The company increased its ore mining production to 4,827 tonnes with grades of 16.5% Zn, 8.4% Pb, and 45 g/t Ag to produce 1.78M Lb Zn, 907.2K Lb Pb and approximately 4.7K Oz Ag. It reported that Zn and Pb recoveries during October 2019 were 62.3% Zn to Zn concentrate, and 21.2% Pb to Pb concentrate. Consolidated Zinc produced 430 tonnes of Zn metal in concentrate at 55% Zn concentrate grade, and 104 tonnes of Pb metal concentrate, including 4,769 Oz Ag at a 52% Pb concentrate grade.

ON FINANCING

  • Galore Resources Inc., closed its second and final tranche of a non-brokered private placement for gross proceeds of CAD $92, 634 for a total financing of CAD $279,816 (Dos Santos project, Zacatecas). The company also announced the TSX acceptance to a shares for services arrangement with COMEFIN S de RL de CV, who conducted a core drilling program at its Alamo project. The agreed service payment is a combination of shares and cash.
  • Orex Minerals Inc., closed a non-brokered private placement for gross proceeds of CAD $800K. Gross proceeds will be used to maintain its 40% share of the Sandra-Escobar project in good standing, funds its 40%share of the upcoming work program, and to make the necessary payments under its existing option to acquire 100% interest in the Cordero project, Durango.
  • San Marco Resources Inc., closed a non-brokered private placement to raise gross proceeds of $448,600 (Chunibas project, Sonora).
  • Vangold Mining Corp., provided an update of its private placements and anticipated the closing of a third and final tranche this month for gross proceeds of $707,500 subject to acceptance of the TSX Venture Exchange. Upon final closing of the private placement, Vangold will have issued an aggregate of 25,809,500 units for aggregate gross proceeds of $1,290,475 (El Pinguico project, Guanajuato).
  • McEwen Mining Inc., announced that it has priced an underwritten public offering for aggregate gross proceeds of $50M (El Gallo mine, Sinaloa).

ON RESOURCES AND DEVELOPMENT

  • Premier Gold Mines Limited, released drilling results from its Lupita Area and announced the extension of high-grade mineralization at its Mercedes mine in Sonora. Highlights from October drilling include hole L19-457D with 15.8 g/t Au and 69 g/t Ag over a true width of 1.4m and hole L19-496D with 10.03 g/t Au and 58 g/t Ag over a true width of 4.6m at San Martin area ; and hole L19-488D with 9.41 g/t Au and 34 g/t Ag over a true width of 8.9m and hole L19-480D with 7.96 g/t Au and 32 g/t Ag over a true width of 3.6m at Lupita Extension area. More drilling delineation is planned in 2020 to upgrade mineralization to an indicated mineral resource. “Given a spacing of less than 60 m of drilling at San Martin during 2019, a portion of the mineralization will warrant inclusion into mineral resources at year end”.
  • SilverCrest Metals Inc., announced its Best drill hole to date at its Las Chispas project in Sonora, at a newly defined zone named 118 Zone. Hole LC-19-118 intersected 44.3 g/t Au and 4,551 g/t Ag (7,873 g/t AgEq) over a true width of 8.6m, including 213.66 g/t Au and 21,671 g/t Ag (37,695 g/t AgEq) over a true width of 1.7m. Also, hole LC19-123 intersected 2.63 g/t Au and 452 g/t Ag (649 g/t AgEq) over a true width of 0.5m, and 3.54 g/t Au and 616 g/t Ag (881 g/t AgEq) over a true width of 5.5m, including 12.69 g/t Au and 2,255 g/t Ag (3,207 g/t AgEq) over a true width of 0.9m.
  • Torex Gold Resources Inc., reported drill results of the last round and extended mineralization 300m down-dip of the existing reserves at the Sub-Sill deposit at its Limon-Guajes mine complex in Guerrero. Highlights include hole SST-156 with 35.17 g/t Au and 49 g/t Ag over 6.1m and 12.56 g/t Au and 29 g/t Ag over 4.93; hole SST-135 with 21.64 g/t Au and 15 g/t Ag over 3.5m; hole SST-139 with 19.54 g/t Au and 3 g/t Ag over 5.9m; hole SST-132 with 13.94 g/t Au and 5 g/t Ag over 8.9m and 15.78 g/t Au and 8 g/t Ag over 5.2m; and hole LDGU-047 with 13.89 g/t Au and 15 g/t Ag over 12.8m.
  • Impact Silver Corp, provided and update on its operations at its Zacualpan Mining District, in the State of Mexico, and reported the presence of native Ag at its Guadalupe mine, on the main Lipton Vein named the Jewelry Shop. Impact is expanding production in its Guadalupe mine, adjacent to the Guadalupe plant, and has upgraded the shaft and infrastructure to access additional veins for mining. At La Negra mine, the company recently started an initial production from the open pit to feed the plant with ore grading 200 g/t Ag. Work is in progress to determine the full upside potential of this zone. At San Ramon Deeps mine, the drilling program below current mining levels intersected new high grade mineralization which may allow renewed expansion of production. A new underground drill station is being excavated to drill the depth extensions of this new mineralization.

 ON DEALS AND CORPORATE ISSUES

  • Discovery Metals Corp., announced that is already trading on the OTCQX Best Market in the USA under the symbol DSVMF (Cordero project, Chihuahua).

ON SOCIAL RESPONSIBILITY

  • IMMSA, donated 60K plants to the municipal government of San Luis Potosi to reforest the city. The Director of Municipal Services, Gonzalo Benavente González, explained that a total of 40 thousand forest trees such as pine trees, ash trees, jacaranda trees, white cedars were received, in addition to 20 thousand ornamental plants such as daisies, carnations, lavenders, rue, mint, peppermint, among other aromatic species. Finally, he said that the plants will be used to continue reforesting the various areas of the city that lack green areas, likewise donated to citizens and delivered to educational events to continue promoting the sustainable development of the capital.
  • Compañía Minera Cuzcatlán (Fortuna Silver), boosted “Access to Education” through a scholarship program. Since its creation in 2009, the Cuzcatlán scholarship program is aimed at primary, secondary, middle-upper and higher students of the municipality of San José del Progreso and agencies, where Compañía Minera Cuzcatlán operates the San José mine. The objective is to support students to continue their studies and prevent school dropout. For the 2018-2019 period, the educational project promoted by the company and the Municipal Education Region benefits 773 families that receive direct economic and in-kind support for their children through a total investment of MXP $1.99M.In addition to the Scholarship program, Compañía Minera Cuzcatlán contributes with resources for internet service, teaching materials and septic tank cleaning of all San José del Progreso schools and agencies. Year after year, Compañía Minera Cuzcatlán works to create shared development with the communities in which it operates and this program is an example of sustainable mining in Oaxaca.
  • The Red Cross delegation of Torreon, Coahuila, recognized Peñoles as a socially responsible company for donations and all the support received to join the collection that the Red Cross makes every year to obtain resources and continue improving. “Last year Peñoles donated a new and equipped ambulance with everything and two other semi-new ones. In addition, about MXP $4M were invested in an operating room, emergency rooms, and floors. We did four more doctor´s offices, we now have specialists and we have been adding doctors”, said the president of the board, Juan Raymundo Jaime Ramírez.
  • Peñasquito, launched the program “Together We Leave Legacy”. Twenty seven communities in the region where Minera Peñasquito operates will benefit from the program “Together We Leave Legacy”, a project that aims to improve the conditions of educational infrastructure and boost sports in this region of the Zacatecan semi-desert.
  • Ternium S.A., allocated USD $60M to sustainable plan in Monterrey, so that all the handling of the product it generates has the guarantee that it will not cause emissions to the atmosphere, said César Jiménez, General Director of the steel company. “We have just opened a smoke collection system three months ago at the Puebla plant to minimize emissions to the atmosphere, we had already installed the same system as our Guerrero plant in Monterrey a few years ago and now we are in the next stage”. The director stressed that the most important issues within Ternium’s agenda are sustainability, safety and environmental care, where relevant investments have been made in all its plants, which total around 200 million dollars in recent years.

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

On the picture above, quartz blade texture in a low sulphidation epithermal chalcedonic quartz vein system from a prospect in Durango, Mexico. Photo by Miguel A Heredia.

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

IMG_2620 - copia

By Jorge Cirett

During the 42nd week of the year (October 14th to October 20th, 2019), at least 29 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, The Congress dominated by Morena approved a bill dramatically changing the rules od operation of the Mining Fund for 2020 . ON EXPLORATION, in Sonora, Magna Gold released drilling results for its Mercedes project, and announced new exploration targets. In Sinaloa, Oroco Resource commenced work at the Santo Tomas project. In Durango, Gainey Capital commenced drilling at Las Margaritas. In Veracruz, Azucar Minerals discovered another mineralized center at El Cobre.  ON MINING, Sierra Metals, Fortuna Silver, Avino Silver, Gold Resource and McEwen Mining released third quarter 2019 production results. Argonaut Gold reported an accident that resulted in the death of two contractor’s employees at La Colorada, in Sonora. ON FINANCING, Kootenay Silver closed a $2 M private placement. Gainey Capital granted options to directors, officers, employees and consultants. Candelaria Mining discontinued a private placement due to unfavorable market conditions. ON RESOURCES AND DEVELOPMENT, SilverCrest Metals reported development mining sampling has returned less tonnage but more AgEq ounces at its Las Chispas property in Sonora. Azure minerals is planning a two-stage drill program at the Loma Bonita gold target of its Alacran property in Sonora. ON DEALS AND CORPORATE ISSUES, Tamino Minerals elaborated on the company’s history and incoming work at its El Volcan project in Sonora. Bacanora Lithium presented the current situation of Ganfeng’s investment on the company. Megastar Development entered into an option agreement regarding the Cerro Minas concession in Oaxaca. Riverside Resources released information on its BHP financing agreement for generative copper exploration in NW Sonora. Golden Minerals entered into an option agreement with Magellan Gold to sell its interest in the Santa Maria project in Chihuahua. ON SOCIAL RESPONSIBILITY. The Grupo Mexico Foundation donates 175 K trees in Queretaro. Ternium granted scholarships to 145 students. Esperanza Silver presented a sustainable project in Morelos.

ON MEXICO ISSUES

  • The Camara de Diputados (Deputies Chamber, or Congress) approved legal reforms concerning the use of the Mining Fund. The changes were approved only by the Morena party and allied members, taking away the planning and overseeing of funds (generated by a special tax on mining) from local mining municipalities, enforcing what is seen as federal discretional use.

ON EXPLORATION

  • Gainey Capital Corp. commenced a diamond drilling campaign at the Las Margaritas project in Durango. This initial phase comprises 1,080 m of drilling in 11 holes focused on the best mineralization exposed at the surface, where sampling has returned up to 73.7 gpt Au.
  • Azucar Minerals Ltd. Announced the discovery of another mineralized center at its El Cobre project in Veracruz. Two holes tested the El Primo target area, defined by a gold, copper and molybdenum soil anomaly. Relevant intervals comprise 5.25 m @ 0.60 gpt Au, 0.26% Cu and 8.45 m @ 0.20 gpt Au, 0.29% Cu in one hole and 200 m @ 0.40 gpt Au, 0.24% Cu in another hole, including 86.50 m @ 0.70 gpt Au, 0.42% Cu; which includes 55.60 m @ 0.94 gpt Au, 0.56% Cu; which includes 10 m @ 1.44 gpt Au, 0.85% Cu. This target is at least a kilometer away from other already identified mineralized centers within the property.
  • Oroco Resource Corp. commenced technical field work, initial environmental baseline studies and permitting at its Santo Tomas project in Sinaloa. This work is to be followed by a 3D induced polarization geophysical survey and the first phase of confirmation diamond drilling. The company holds an option to acquire a 56.7% interest in the 1,173 ha core concessions of the project, and might increase that interest up to an 81.0% interest with a project investment of up to CAD$30 M. Oroco also holds a 77.5% interest in 7,808 ha surrounding and adjacent to the core concessions.

ON MINING

  • Argonaut Gold Inc. informed on an accident involving a contractor that resulted in death by electrocution of two individuals while performing maintenance work on a haul truck at La Colorada mine in Sonora. Operations were suspended on October 11 and resumed on October 12, 2019.
  • Sierra Metals Inc. reported third quarter 2019 production, including figures from its Mexican operations. At Bolivar in Chihuahua, 331.8 K tonnes were processed at a 3,792 tonnes per day rate (tpd) @ 0.86% Cu, 20.5 gpt Ag, 0.31 gpt Au, recovering 81.3% Cu, 79.0% Ag, 62.3% Au to produce 5.115 M Lb Cu, 173 K Oz Ag, 2,173 Oz Au. At Cusi, also in Chihuahua, 70.4 K tonnes were processed at an 805 tpd rate @ 141.5 gpt Ag, 0.15 gpt Au, 0.14% Pb, recovering 84.6% Ag, 39.6% Au, 78.3% Pb to produce 271 K Oz Ag, 135 Oz Au, 168 K Lb Pb.
  • Fortuna Silver Mines Inc. disclosed production results for the third quarter 2019, including figures from its Mexico operations. At San Jose in Oaxaca, 268 K tonnes were milled @ 219 gpt Ag, 1.40 gpt Au, recovering 82.4% Ag, 90.6% Au, to produce 1.71 M Oz Ag, 10,942 Oz Au, at a cash cost per ton of US$70.80.
  • Avino Silver & Gold Mines Ltd. released third quarter 2019 production results from its Avino property in Durango. Consolidated figures comprise 202.7 K tonnes processed @ 44 gpt Ag, 0.33 gpt Au, 0.33% Cu, recovering 76% Ag, 67% Au, 68% Cu to produce 221.9 K Oz Ag, 1,448 Oz Au, 1.38 M Lb Cu. At the Avino mine 122.2 K tonnes were processed @ 41 gpt Ag, 0.31 gpt Au, 0.58% Cu to produce 139.4 K Oz Ag, 900 Oz Au, 1.3 M Lb Cu; 17.8 K tonnes were processed from the San Gonzalo mine stockpiles (the mine is now closed) @ 56 gpt Ag, 0.41 gpt Au to produce 29.6 K Oz Ag, 194 Oz Au; From historic above ground stockpiles 62.6 K tonnes were processed @ 47 gpt Ag, 0.33 gpt Au, 0.33% Cu to produce 232.1 K OZ Ag, 1,528 Oz Au, 311 K Lb Cu.
  • Gold Resource Corp. reported preliminary production for the third quarter 2019, including figures from its operations in Mexico. At the company’s Oaxaca Mining Unit, a total of 7,462 Oz Au, 473.8 K Oz Ag, 492 tonnes of copper, 2,459 tonnes of lead and 6,057 tonnes of zinc were produced.
  • McEwen Mining Inc. released production details for the third quarter 2019, including figures from its Mexican operations. At its El Gallo property in Sinaloa, 3,018 Oz Au were produced by residual leaching of the heap leach pad.

ON FINANCING

  • Kootenay Silver Inc. closed its non-brokered private placement of $2 M that was fully subscribed by Ninepoint Silver Equities Class with Sprott Asset Management LP acting as sub-advisor. (Columba, Chihuahua).
  • Candelaria Mining Corp. announced that a private placement previously announced has been discontinued due to unfavorable market conditions. The company intends to conduct an offering on a non-brokered private placement basis for aggregate gross proceeds of up to $700 K. Closing of the new private placement is expected to be on November 30, 2019 (Caballo Blanco, Veracruz).
  • Gainey Capital Corp. granted 1.5 M incentive stock options to its directors, officers employees and consultants (Las Margaritas, Durango).

ON RESOURCES AND DEVELOPMENT

  • SilverCrest Metals Inc. informed development work has intersected better grades than those in the resources estimate for the Babicanora vein at its Las Chispas property in Sonora. Underground mining along 180 m of the Babicanora vein (20% of the mineralized length on area 51) reported 33% less tonnes, but 65.7% more AgEq ounces for the interval. In total 4,170 tonnes were extracted @ 15.18 gpt Au and 1,071 gpt Ag (2,209 gpt AgEq), while the resource estimate in this zone graded 4.48 gpt Au and 556 gpt Ag (892 gpt AgEq). Underground sampling returned up to 2.8 m @ 94.52 gpt Au, 8,320 gpt Ag (15,409 gpt AgEq). SilverCrest plans to have a stockpile of 25-30 K tonnes of high-grade material containing 800 K to 1 M Oz AgEq, extracted by development work to the end of 2019.
  • Azure Minerals Ltd. is planning a two-stage drill program on resource expansion at Loma Bonita, within the Alacrán project in Sonora. High-grade intersections on the resource boundary, like 47 m @ 2.8 gpt Au, 33 gpt Ag and 67 m @ 1.6 gpt Au, 21 gpt Ag (both from surface) favor the continuity of the ore body. First pass sampling of historical workings south of Cerro Alacrán returned up to 3,675 gpt Ag, 21.1 gpt Au, 2.3% Cu, 33.5% Pb, 21.0% Zn. Applications for environmental approval have been submitted.

ON DEALS AND CORPORATE ISSUES

  • Tamino Minerals Inc. elaborated into the long and convolute company history and financing (El Volcan, Sonora).
  • Bacanora Lithium PLC. Announced the completion of the “Invested Agreement and Offtake Agreement” which together make the “Strategic Investment” of Ganfeng Lithium Co.. The relevant approvals have been completed and Bacanora has now received £21.96 M of funds from Ganfeng, for a 29.99% equity interest in Bacanora Lithium PLC and a 22.5% JV investment directly in the Sonora Lithium Project. The vice-president of Wangfeng was appointed a director of Bacanora. “The Bacanora project team in Mexico continues to progress the final design work for the mine, concentrator and kiln sections of the processing plant. The Ganfeng technical team has initiated work on the hydrometallurgical circuit…”
  • Tamino Minerals Inc. informed it is going to present a NI 43-101 report on its El Volcan property in Sonora once a registration statement is filed to the SEC and the company becomes fully reporting.
  • Megastar Development Corp. has entered into an option agreement with Gunpoint Exploration Ltd. to acquire 100% interest in the 899 ha Cerro Minas mining concession (title (234333) in Oaxaca. The agreement entails the payment of US$10 K and 100 K Megastar shares on the effective date, US$20 K and 150 K shares on the first anniversary, US$30 K and 250 shares on the second anniversary and US$40 K and 300 K shares on the third anniversary, with Gunpoint retaining a 1.5% NSR royalty, of which 0.5% can be bought by US$1.0 M.
  • Riverside Resources Inc. informed that the first two to three quarters of the exploration financing agreement with BHP for generative copper exploration in NW Sonora will be centered on regional prospect generation. The program envisages a minimum two-year US$2 M budget, and upon advancing projects to the operation phase (Phase II), BHP has the option to fund up to US$5 M for drilling and other exploration expenditures. Riverside is to receive US$200 K by project that makes it to the second phase.
  • Golden Minerals Co. entered into an option agreement with Magellan Gold Corp. to sell its rights to acquire a 100% interest in the Santa Maria project, in Chihuahua. Magellan has a 150 days due diligence period to decide whether to execute the option, on which it has to pay $1 M cash, with Golden Minerals retaining a 6.5% royalty until a total of $3 M has been paid as royalty, with Golden retaining a 3% NSR royalty for the life of the mine. If Magellan fails to get the mine to production within one year from closing the deal, Golden will get back the property.

ON SOCIAL RESPONSIBILITY

  • The Grupo Mexico Foundation donates 175 plants and trees in Queretaro. Grupo Mexico is aiding to reach the goal of planting 250 thousand trees in the Queretaro municipality. Grupo Mexico is the number one producer of tree saplings in the country.
  • Ternium delivers scholarships and supports education in a mining zone. The Roberto Rocca Education Program and the Universidad de Colima granted this year scholarships to 145 students from universities in Mexico City, Nuevo Leon, Coahuila, Veracruz, Puebla, Colima and Michoacan. Since its inception in 2006, the Roberto Rocca Education Program has granted 3,000 scholarships.
  • Esperanza Silver (Alamos Gold) presented a sustainable project for the Esperanza project in Morelos. The project involves the company’s involvement in the remediation of a nearby community landfill, and the collaborative support on the Lagunas de Zempoala, the national park Tepozteco, the biological corridor Ajusco-Chichinautzin as well as the state parks El Texcal, Sierra Montenegro and the biosphere reserve Sierra de Huautla.

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

On the image below:  Gneiss hosted quartz-feldspar veinlet from a project in Oaxaca. Picture by Jorge Cirett.

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The Mining and Exploration News in Mexico: Highlights on the First Week of October, 2019

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The Mining and Exploration News in Mexico: Highlights on the First Week of October, 2019

By Jorge Cirett

During the 40th week of the year (September 30th to October 6th, 2019), at least 20 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, Gold production declined 2.8% in 2018. On the illegal blockade at the Peñasquito mine in Zacatecas, the president of Mexico asked for both parties to solve their differences (not pronouncing himself on the illegality of the blockade). Frisco and Cemex suffered big losses at the Mexican stock exchange. ON EXPLORATION, in Sonora, Magna Gold signed a LOI on the San Judas project in Sonora; Colibri Resource is to complete mapping and sampling on its Evelyn project. In Sinaloa, Kootenay Silver signed a surface access agreement on the Copalito project. In Zacatecas, Alien Metals is eyeing a drill program on its San Celso project.  ON MINING, Alien Metals presented financial results for the first semester 2019. Torex Gold produced 138,100 Oz Au at El Limon-Guajes mine in Guerrero during the Q3 2019. ON FINANCING, Southern Silver, Millrock Resources and Alien Metals granted 3.25 M, 1.88 M and 7 M incentive options respectively to officers, directors, employees and consultants. Fortuna Silver closed a bought deal financing for US$40 M. Azure Minerals raised $4 M. ON RESOURCES AND DEVELOPMENT, GoGold resources released results for one more hole at its Los Ricos project in Jalisco. Premier Gold released results on drilling at the Lupita extension on its Mercedes mine in Sonora. Goldplay disclosed channel surface sample results at its San Marcial property in Sinaloa. Silver Bull provided results from eleven more drill holes at the Sierra Mojada project in Coahuila (halted by an illegal blockade). ON DEALS AND CORPORATE ISSUES, Magna Gold signed a LOI on the San Judas project in Sonora. Silver Bull halted exploration at its Sierra Mojada project in Coahuila, due to an illegal blockade by a mining cooperative demanding a royalty payment on a property that is not in production. Fortuna Silver terminated the option on Prospero Silver’s Pachuca SE project in Hidalgo. Millrock and Riverside entered into a definitive agreement on the La Union, Los Cuarentas, El Pima, El Valle, and Llano del Nogal projects in Sonora. Santacruz Silver approved the acquisition of the remaining 50% of PCG Mining S.A. de C.V., parent company of Carrizal Mining, S.A. de C.V.. ON SOCIAL RESPONSIBILITY. No relevant news.

ON MEXICO ISSUES

  • Gold production in Mexico declined by 2.8% in July 2019. This is the 28th consecutive month of production contractions, the longest since 1981, according to INEGI (Instituto Nacional de Estadística y Geografía). In 2016 the production declined by 5.2%, in 2017 another 13.6% and a further 9.7% in 2018. Mineral products with annual increments include zinc at 10.7%, iron pellets with 2.9%, lead with 2.5%, sulphur with 1.6% and coal with 0.8%.
  • On Peñasquito’s illegal blockade, Mexico’s president, Andres Manuel Lopez Obrador, asked both parties two solve their differences in the conflict that has now more than two weeks (he did not mention the blockade being illegal). Newmont Goldcorp has offered more than US$25 M in investments, amount that the blockaders reckon as lacking. The Peñasquito mine produced 272,000 Oz Au last year, and had re-started production in mid-June after a first illegal blockade by truckers wanting to get a contract and locals accusing the company of water availability issues.
  • To the 3rd of October Frisco and Cemex have suffered big losses in the Mexican stock exchange (S&P/BMV IPC), 13.76% and 6.24% respectively, under the current commercial instability between USA and the European Union. Frisco is one of the biggest mining companies in Mexico, with operations in Baja California, Sonora, Chihuahua, Zacatecas and Aguascalientes (although Frisco is also known for its scant releases on reserves and resources). Cemex is the biggest Mexican cement producer, with operations internationally.

ON EXPLORATION

  • Magna Gold Corp. signed a LOI to explore the San Judas project in Sonora. The two mineral concessions cover 2806 ha underlain by a Precambrian basement composed of granite, gneiss, pegmatites and schist. “The entire sequence is affected by multiple deformations and the emplacement of intrusions such as leucocratic granites and andesitic dikes”. Gold mineralization is associated with quartz-breccia veins, quartz veins and “quartz stockworks emplaced along a series of parallel, foliated, low-angle shear zones within the igneous-metamorphic sequence”. Assays in an historical rock chip sample database have values of up to 230 gpt gold.
  • Colibri Resource Corp. contracted Auro Metallum Geology Consulting Services of Hermosillo, in Sonora, to complete a geological mapping study of its 506 ha Evelyn Gold Project near Caborca in Sonora. Recent sampling has returned up to 4.8 gpt Au from abundant quartz in sub-crop in a new zone identified by soil sampling.
  • Alien Metals Ltd. updated on the exploration of its San Celso and Los Campos projects in Zacatecas. At San Celso a next step of work will examine a drill program funded by a third party to test the strike extension of the main veins, and the depth extension below the existing workings.
  • Kootenay Silver Inc. signed a surface access agreement with the local ejido at the Copalito project in Sinaloa. Said agreement allows the company to mapping, sampling, geophysics, trenching and drilling. The 3,700 ha project covers a low sulfidation epithermal system with numerous veins, traced over up to 2 km of length, and 0.5 to 15 meters in width. Sampling has returned assays of up to 8.2 gpt Au, 532 gpt Ag, 17.4% Zn, 9.9% Pb and 5.1% Cu.

ON MINING

  • Alien Metals Ltd. presented its financial results for the first semester of 2019. As of the end of the period the company had total assets of US$1.2 M, of which US$0.4 M was cash, and current total liabilities for US$0.1 M (Donovan 2, Zacatecas).
  • Torex Gold Resources Inc. announced gold production of 138,100 ounces of gold during Q3 2019, on track to meet it 2019 production guidance of 430,000 ounces. During the period plant throughput averaged 12,370 tonnes per day (tpd), underground mining 1,110 tpd, open pit mining 14,270 tpd (El Limon-Guajes, Guerrero).

ON FINANCING

  • Southern Silver Exploration Corp. granted 3.25 M incentive stock options to directors, officers and consultants, exercisable at $0.27 per common share for a period of five years. The rolling incentive stock option plan was also approved, pursuant to which a maximum of 10% of the issued shares will be reserved for issuance under the plan. (Cerro Las Minitas, Durango).
  • Millrock Resources Inc. approved a grant of stock options to employees, officers, directors and advisers to the company, granting a total of 1.88 M stock options exercisable at $0.09 for five years. The company is also to settle debt owed for deferred cash compensation to certain officers, directors and employees by issuing 819 K Millrock shares (Batamote, Sonora).
  • Alien Metals Ltd. granted 7 M options to its technical director, Brill Brodie. All shares are exercisable from 1 October 2019, of which 3 M can be exercised at 0.22 pence, 3 M at 0.30 pence and 4 M at 0.45 pence (San Celso, Zacatecas).
  • Fortuna Silver Mines Inc. closed the previously announced bought deal offering of senior subordinated unsecured convertible debentures for an aggregate principal amount of US$40 M. “The Debentures mature on October 31, 2024 and will bear interest at a rate of 4.65% per annum, payable semi-annually in arrears on the last business day of April and October in each year, commencing on April 30, 2020. The Debentures will be convertible at the holder’s option into common shares in the capital of the Company” at a conversion price of US$5.00 per share (San José, Oaxaca).
  • Azure Minerals Ltd. raised $4 M (before costs) through a placement to institutional and sophisticated investors “to relaunch an aggressive exploration push on the Alacrán silver and gold projects” in Sonora. Azure is to undertake drilling to increase mineral resources at the Loma Bonita Au-Ag deposit, today standing at 150 K Oz Au, 4.8 M Oz Ag in 5.4 M tonnes @ 0.9 gpt Au, 28 gpt Ag.

ON RESOURCES AND DEVELOPMENT

  • GoGold Resources Inc. released results from one more hole completed on the San Juan area of its Los Ricos project in Jalisco. The hole returned 21.0 m @ 1.38 gpt Au, 146 gpt Ag (3.33 gpt AuEq), including 5.0 m @ 4.36 gpt Au, 436 gpt Ag (10.2 gpt AuEq). The San Juan area is located 400 m NW from the Los Ricos Main area.
  • Premier Gold Mines Inc. released results from its drilling program focused on delineating new mineral resources in the Lupita Extension at its Mercedes mine in Sonora. Highlighted results comprise 3.6 m @ 7.18 gpt Au, 54 gpt Ag; 1.8 m @ 24.24 gpt Au, 179 gpt Ag; 3.4 m @ 8.86 gpt Au, 67 gpt Ag; 3.1 m @ 13.65 gpt Au, 80 gpt Ag. The Neo target is 400 m north of San Martin is a possible extension of the Diluvio system, with one of three drill holes returning 3.1 m @ 13.65 gpt Au, 80 gpt Ag.
  • Goldplay Exploration Ltd. disclosed results from channel sampling on the Faisanes target of the San Marcial project in Sinaloa. The samples were cut by saw along the access road walls and road surface, returning 10 m @ 98 gpt Ag, 0.06 gpt Au) 0.6 m @ 587 gpt Ag, nil Au; 1.0 m @ 214 gpt Ag, nil Au; 1.1 m @ 42 gpt Ag, nil Au; 1.0 m @ 41 gpt Ag, 0.26 gpt Au.
  • Silver Bull Resources Inc. provided results from eleven more drill holes from its Sierra Mojada project in Coahuila. Highlights from the holes comprise: 17.1 m of oxide mineralization @ 120 gpt Ag, 0.43% Cu (including 1.35 m @ 539 gpt Ag, 0.27% Cu and 2.25 m @ 198 gpt Ag, 1.66% Cu and 0.55 m @ 403 gpt Ag, 1.6% Cu); 5.2 m of sulfide mineralization @ 149 gpt Ag, 0.87% Cu, 4.67% Zn. Due to an illegal blockade by a cooperative of miners who hold a royalty on two claims, the drill program has been paused.

ON DEALS AND CORPORATE ISSUES

  • Magna Gold Corp. entered into a binding letter of intent (LOI) with the private owners of the two mining concessions forming the 2,806 ha San Judas project in Sonora. The deal involves payments of US$50 K on signature of the definitive agreement, US$50 K on the first year, US$100 K on the second year, US$150 K on the third year, US$300 K on the fourth year and US$1.,03 M on the fifth year, all figures plus VAT.
  • Silver Bull Resources Inc. halted all work on the Sierra Mojada project in Coahuila due to a blockade by a cooperative of local miners called Sociedad Cooperativa de Exploración Minera Mineros Norteños, S.C.L.. The company has an agreement with the said cooperative on two mineral concessions in the eastern part of the Sierra Mojada project, under which they have the right of a 2% production royalty. Since 2014 the cooperative filed a suit fighting for payment of the royalty, notwithstanding the lack of production from the property. The cooperative also demands payments of wages for individuals that have not worked for the company, neither received employment commitments from Silver Bull. The cooperative has now illegally blockaded access to the project in an attempt to force a settlement before the final ruling. “Silver Bull is working with authorities to resolve the situation in a safe, fair, and timely manner”.
  • Fortuna Silver Mines Inc. announced the termination of the Pachuca SE property option agreement signed previously with Prospero Silver Corp. (San José, Oaxaca).
  • Millrock Resources Inc. entered definitive agreements to sell the La Union, Los Cuarentas, El Pima, El Valle, and Llano del Nogal claim blocks to Riverside Resources Inc., as well a copy of its exploration database and exploration vehicles also to Riverside. Consideration paid to Millrock is $35 K cash and 150 K Riverside shares, and a 0.5% NSR on the El Pima, El Valle and Santa Rosalia (conditional on this one) claims. “Millrock has retained the El Batamote copper porphyry project and this will be the sole focus of Millrock’s exploration effort in Mexico going forward” (Batamote, Sonora).
  • Santacruz Silver Mining Ltd. shareholders approved in its last annual general meeting held in October 1, 2019, the re-election of directors, the auditor of the company and the approval of the existing 10% rolling stock option plan. Also approved was the acquisition of the remaining 50% of the outstanding shares of PCG Mining S.A. de C.V. from a non-arm’s length party in consideration for the issue of 30 M common shares of the company. Upon completion of the transaction the company will own 100% of PCG, which is the parent holding company of Carrizal Mining, S.A. de C.V..

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 image below: Sheeted quartz veining in metamorphic rocks from an orogenic gold project in Oaxaca. Picture by Jorge Cirett.

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

 

Flow -banded rhyolite

By Miguel A Heredia

During the thirty-five week of the year (July 26th to September 1st, 2019), at least 22 press releases were announced by companies working in Mexico, with seven disclosing deals and corporate issues, six announcing financial rounds, four communicating production results, three reporting on resources and development of their projects, and two informing on exploration results.  ON MEXICO ISSUES, no relevant news.  ON EXPLORATION, In Chihuahua, Kootenay reported drilling results from four holes drilled at its Columba project. In Jalisco, GoGold reported drilling results from ten new holes drilled at its Los Ricos project. ON MINING, Argonaut extended El Castillo mine life with zero-cost collar gold price protection program. Mexus Gold commenced leaching of 5K tonnes of mineralized material at its Santa Elena mine in Sonora.  Telson processed 2,166 tonnes of concentrates from its Tahuehueto project in Durango and announced significant metallurgical recoveries. Santacruz reported Q2, 2019 production and financial results from their Mexican operations.  ON FINANCING, Excellon completed an $11.5M bought deal financing (La Platosa mine, Durango). First Mexican Gold announced consolidation and private placement for gross proceeds of $0.5M (Guadalupe property, Sonora). Sable announced a strategic investment with Osisko Gold Royalty for potential proceeds of $12.58M (Margarita project, Chihuahua). Silver Spruce closed a private placement for gross proceeds of $261,250 (Pino de Plata project, Chihuahua). New Gold closed a bought deal financing for gross proceeds of CDN $150M (Cerro San Pedro mine, San Luis Potosi).  Gold Resource declared monthly dividend to shareholders (Arista deposit, Oaxaca). ON RESOURCES AND DEVELOPMENT, Santacruz updated mineral resource estimate at its Veta Grande project in Zacatecas. Impact Silver reported results of the successful dense media separation (DMS) study at its Capire project in Mexico State. SilverCrest released in-fill drilling results from its Las Chispas project in Sonora.  ON DEALS AND CORPORATE ISSUES, Prize Mining reported results from its annual general meeting of shareholders (Manto Negro project, Coahuila). SilverCrest announced that the company will begin trading on TSX (Las Chispas project, Sonora).  Golden Minerals received continued listing standard notice from New York Stock Exchange (Santa María project, Chihuahua). Azure revealed that it has regained 100% of the Alacran Au-Ag project from Teck. Consolidated Zinc announced that the Federal Court of Mexico has ruled in its favour on the land use agreement dispute with the landowner. Minera Alamos announced the closing of the Guadalupe de los Reyes option and the acquisition of common shares of Prime Mining. Newmont Goldcorp announced successful completion of consent solicitation for its 5.875% notes due 2035 (Peñasquito mine, Zacatecas).  ON SOCIAL RESPONSIBILITY, no relevant news.

 ON MEXICO ISSUES

  • No relevant news

ON EXPLORATION

  • Kootenay Silver Inc., released drilling results from four new holes drilled at its Columba project in Chihuahua. Significant drill intersections were encountered in hole CDH-19-009 with 516 g/t Ag and 0.2% Zn over 2.90m, including 1,070 g/t Ag and 0.4% Zn over 0.90m; hole CDH-19-008 with 112 g/t Ag over 33.5m, including 408 g/t Ag, 0.7% Pb, and 1.1% Zn over 4.85m; and hole CDH-19-007 with 417 g/t Ag and 0.1% Zn over 1.68m and other interval of 693 g/t Ag, 0.4% Pb, and 1.13% Zn over 1.55m. The ongoing drilling program has showed that the F vein has returned high grades over good widths, the known veins have excellent continuity along strike and to depth, and the newly discovered veins in the hanging wall also contain high grades. Kootenay has drilled 16 holes to date of a planned first phase 25-30 holes program.
  • GoGold Resources Inc., announced drilling results from ten new holes drilled at its Los Ricos project in Jalisco: three at the Los Ricos main area and seven on the Cerro Colorado target located 1.5Km to the south of the main area. The most significant drill intersections were encountered in hole LRGG-19-028 located at the Los Ricos main area, with 1.21 g/t Au and 133 g/t Ag (2.99 g/t AuEq) over 27.5m, including 2.93 g/t Au and 294 g/t Ag (6.85 g/t AuEq) over 11m, and on the Cerro Colorado target in hole LRGC-19-004 with 1.28 g/t Au and 107 g/t Ag (2.71 g/t AuEq) over 11.5m. The drilling program has now been expanded for additional testing along 3.2Km of the Los Ricos mineralized zone while at the Cerro Colorado target it has showed that the quartz vein system has good grades over a strike length of at least 500m.

ON MINING

  • Argonaut Gold Inc., extended El Castillo mine life as it entered into a series of zero-cost collar option contracts. The contracts cover 145K Oz Au through mid-2022. The floor price of the monthly gold collars has been set at $1,450/Oz with the ceiling price of the collars ranging from $1,630/Oz in Q4, 2019 to $1,760/Oz for H1, 2022.
  • Mexus Gold US, commenced leaching of 5K tonnes of ore material at its Santa Elena mine in Sonora, and expects to recover from 5 to 8 Oz Au per day. The ore material has been tested and is returning values as high as 54.74 g/t Au.
  • Telson Mining Corporation, processed 2,166 tonnes of concentrate with average grades of 5.32 g/t Au, 38 g/t Ag, 1.7% Pb, 3.2% Zn, and 0.24% Cu from its Tahuehueto project in Durango, to produce 82.9 tonnes of Au rich Pb concentrate grading 101 g/t Au, 702 g/t Ag, 38.8% Pb, and 5.29%Cu, and 130.8 tonnes of Zn concentrate grading 40.8% Zn, 12.02 g/t Au, and 94 g/t Ag. Telson has achieved the highest recoveries to date at 86% Au, 85% Ag, 86% Pb, 77% Zn, and 84% Cu.
  • Santacruz Silver Mining Ltd., reported Q2, 2019 production and financial results from their Mexican operation in Zacatecas and San Luis Potosi. Consolidated mining operations generated a gross profit of $251, including gross profit from Rosario mine in San Luis Potosi of $54, and gross loss from Veta Grande mine in Zacatecas of $691 plus mine services gross profit of $888. Net loss after taxes was $1,137, cash cost per Oz AgEq of $16.07 and an AISC of $18.37. Santacruz processed 37,156 tonnes at Veta Grande to produce 240.2K Oz AgEq, at a cash cost of $17.68 per Oz AgEq produced and an AISC of $19.70 per Oz AgEq. At El Rosario, it processed 20.789 tonnes to produce 133.1K Oz AgEq at a cash cost of $14.23 per Oz AgEq produced and an AISC of $16.81 per Oz AgEq.

ON FINANCING

  • Excellon Resources Inc., completed its previously announced bought deal offering for $11.5M. Gross proceeds will be used to fund exploration and capital expenditures at its Platosa project in Durango, and its Evolution project in Zacatecas. In connection with the offering, insiders purchased an aggregate of 1,015,000 units for a total consideration of $1M.
  • First Mexican Gold Corp., announced consolidation of its common shares on a ten for one basis, and proposes to close a private placement for gross proceeds of $0.5M. The closing of the offering is anticipated to take place on or about September 30, 2019, or such other later date as the Company may agree (Guadalupe project, Sonora).
  • Sable Resources Ltd., announced a strategic investment with Osisko Gold Royalty for potential proceeds of $12.58M. This financing will provide Sable with the funding to progress its exploration objectives over its entire portfolio for the next 4 years. In connection with the financing, Osisko will have a right of first refusal over any royalty, stream or similar right in Sable properties, equity participation right to maintain pro-rata ownership interest so long as Osisko owns more than 5% of the outstanding common shares of Sable, and the right to nominate one person to Sable´s board of directors so long as Osisko owns more than 5% of the outstanding common shares of Sable. Additionally, Sable granted Osisko the right to acquire 1% NSR on properties controlled by Sable´s wholly subsidiaries in Mexico for $5M. The NSR will extend to any additional properties acquired by Sable within a period of 4 years from the closing of the NSR agreement. Sable also has granted Osisko the right to acquire an additional 1% NSR for $5.5M on all minerals produced from initial and future properties control by Sable until the expiration of the NSR agreement (Margarita and Vinata projects, Chihuahua).
  • Silver Spruce Resources Inc., closed a private placement for net proceeds of $261,250. Funds will be used to conduct due diligences and exploration activities (Pino de Plata project, Chihuahua).
  • New Gold Inc., closed a bought deal financing for gross proceeds of CAD $150M (Cerro San Pedro mine, San Luis Potosi).
  • Gold Resource Corporation, declared its August dividend of 1/6 of a cent per common share payable on September 23, 2019 to shareholders (Arista deposit, Oaxaca).

ON RESOURCES AND DEVELOPMENT

  • Santacruz Silver Mining Ltd., updated mineral resource estimate at its Veta Grande project in Zacatecas. Considering a cut-off of 100 g/t Ag, the inferred resources is 3,954,729 tonnes of 136 g/t Ag, 0.14 g/t Au, and 0.11% combined Pb+Zn (153 g/t AgEq) to contain 47M Oz AgEq.
  • Impact Silver Corp., reported results of the successful Dense Media Separation (DMS) study at its Capire open pit VMS deposit located within the Zacualpan mining district in Mexico State. “These preliminary tests indicate that it may be possible to pre-concentrate crushed run of mine material using a low cost Dense Medium Separation (DMS) plant prior to milling and mineral processing, thereby reducing the overall cost of processing at Capire and potentially bringing it back into economic production”. An initial test showed that 25% of the sample retained over 99% of Ag, Pb, and Zn minerals, and over 97% of Cu and Au in a heavy liquid separation (HLS) concentrate. A second test showed that over 42% of the sample retained 93% of Ag and Pb minerals and 79% to 92% of Cu, Au, and Zn in an HLS concentrate. “These results suggest that the addition of a DMS pre-concentration plant to the Capire process flow sheet could unlock some significant operating cost improvements that would subsequently allow a lowering of cut off grade and access to otherwise uneconomic areas of the Capire deposit”.
  • SilverCrest Metals Inc., released in-fill drilling results of 33 holes from the Babi Sur vein within its Las Chispas project in Sonora. The in-fill drilling has increased the confidence of resources and high-grade continuity in the vein. The most significant drill intersections were encountered in hole BAS19-63 with 8.51 g/t Au and 717 g/t Ag (1,355 g/t AgEq) over 3.1m of true width; hole BAS19-57 with 3.1 g/t Au and 305 g/t Ag (536 g/t AgEq) over 8.8m; and hole BAS19-49 with 5.32 g/t Au and 374 g/t Ag (773 g/t AgEq) over 3.8m. “The Babi Sur Vein and Babi Sur HW Vein are still open to depth and down plunge to the southeast. Unnamed veins are under review for possible continuity and announcement(s) of additional vein discoveries. Approximately 25 to 35 additional in-fill and expansion holes, for a minimum of 7,000 metres, are planned for the Babi Sur veins in H2, 2019”.

ON DEALS AND CORPORATE ISSUES

  • Prize Mining Corporation, reported results from its annual general meeting of shareholders. It also plans to change the name of the company to Boundary Gold and Copper Mining Ltd, and a consolidation of its common shares on a five for one basis. Change name is subject to the approval of the TSX (Manto Negro project, Coahuila).
  • SilverCrest Metals Inc., announced that it will begin trading on the Toronto Stock Exchange (TSX) following its graduation from the Toronto Stock Exchange Venture (TSXV) (Las Chispas project, Sonora).
  • Golden Minerals Company, received continued listing standard notice from the New York Stock Exchange. Specifically, the company is not in compliance with section 1003 (a) (iii) since it reported stockholder´s equity of less than $6M as of June 30, 2019 and losses from continuing operations and/or net losses in its five most recent fiscal years. In order to maintain its listing on the NYSE, Golden was asked to submit a plan of compliance no later than September 18, 2019 advising how the company intends to regain compliance with section 1003 (a) (iii) of the company guide by February 19, 2021 (Santa Maria project, Chihuahua).
  • Azure Minerals Limited, revealed that it has regained 100% of the Alacran Au-Ag project in Sonora from Teck. Alacran project host global resources of 32.2M Oz Ag and 150K Oz Au, being 27.4M Oz Ag at Loma de Plata deposit and 4.8M Oz Ag and 150K Oz Au at Loma Bonita deposit. “Azure accepted a first offer proposal to lock-in all Teck’s rights and interest in the project by issuing Teck more than 27.5 million shares – effectively bumping Teck’s stake in Azure to 19.9%”. Teck also will retain a 0.5% NSR over Alacran project.
  • Consolidated Zinc Limited, announced that the Federal Court of Mexico has ruled in its favour on the land use agreement dispute with the local ranch owner, cancelling the prior appeal Court of Chihuahua which had ruled in favour of the landowner. The company continues to operate freely at its Plomosas mine and in accordance with the agreement.
  • Minera Alamos Inc., announced the closing of the Guadalupe de Los Reyes option in Sinaloa, and the acquisition of 9.45M of common shares of Prime Mining Corp. It represents 16.1% of the outstanding common shares of Prime. Following the transaction, Minera Alamos also acquired warrants to purchase up to 3.35M additional common shares of Prime with the closing date being December 28th, 2019.
  • Newmont Goldcorp Corporation, announced successful completion of consent solicitation for its 5.875% notes due 2035. “Holders of approximately $575,330,000 (95.89%) in aggregate principal amount of the outstanding notes had validly delivered (and not validly revoked) their consent to the amendments. The company will pay, a cash payment equal to $33.33 per $1,000 aggregate principal amount of the notes for which holders had validly delivered (and not validly revoked) their consent to the amendments on or prior to the expiration date (August 23, 2019). The company intends to pay the consent fee on August 28, 2019”.

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, flow-banded rhyolite in a prospect in Guanajuato, Mexico.  Photo by Miguel A Heredia.

 

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

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By Jorge Cirett

During the 34th week of the year (August 19th to August 25th, 2019), at least 23 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, the Charcas municipality in San Luis Potosi is awaiting for a favorable resolution by the Supreme Court on the use of the Mining Fund. ON EXPLORATION, in Baja California, One World Lithium plans a diamond drilling campaign at its Salar del Diablo project. In Sonora, Minaurum Gold released drilling results on its Alamos Silver project. In Durango, Canasil updated on exploration of its Salamandra, Nora, and Vizcaino projects. In Zacatecas, Canasil updated on exploration of La Esperanza. In Oaxaca, Megastar reported interesting surface sample results at its Yautepec project. ON MINING, Mexus Gold continues piling material on the heaps at its Santa Elena mine. Fortuna Silver reported an underground fatality at the San Jose mine in Oaxaca. ON FINANCING, Discovery Metals granted options to officers, directors, employees and consultants. SilverCrest Metals closed a private placement for C$4.56 M. Argonaut Gold entered into an agreement for gross proceeds of C$4 M. Avino Silver granted options and 1.73 M restricted share units to its directors, officers, employees and consultants. Millrock received an extension regarding the filing of documents in respect of a private placement. Kootenay Silver closed its non-brokered private placement financing for gross proceeds of $5 M. Tamino Minerals intends to raise capital. ON RESOURCES AND DEVELOPMENT, Aura Minerals reported that a geophysical survey indicates a mineralised body might open to depth at its Aranzazu mine, in Zacatecas. SilverCrest Metals received the explosives permit, acquired water rights and paid the remaining mining concessions at its Las Chispas project in Sonora. ON DEALS AND CORPORATE ISSUES, Magna Gold completed the acquisition of Las Marias and Las Cabanas groups of concessions in Sonora, adjacent to its flagship Mercedes project. GoGold renegotiated the acquisition agreement on Los Ricos property, Jalisco, to speed up the purchase and lower the amount of the full transaction by $5.4 M. Torex Gold hedged the production of 96 K Oz Au. Bacanora Lithium presented an update on the approval of Ganfeng Lithium investment on Bacanora by the Chinese authorities. ON SOCIAL RESPONSIBILITY. No relevant news.

ON MEXICO ISSUES

  • Mining municipalities in San Luis Potosi demand to receive the Mining Fund. The municipality of Charcas, in San Luis Potosi, presented a legal complaint to the Supreme Court to avoid the use of these funds (gathered by the payment on a royalty from mining proceeds) for programs unrelated to mining. The municipality president, Manuel López Lara, said these resources are needed to provide vital infrastructure to the community, and that they are awaiting a favorable resolution by the Supreme Court.

ON EXPLORATION

  • One World Lithium Inc. appointed Montgomery and Associates as operator for its upcoming drill programs on its Salar del Diablo lithium brine project in Baja California. Initially four diamond holes are to be drilled to 600 m depth to collect 20 groundwater samples at specified depths using a depth specific packer system.
  • Minaurum Gold Inc. released further drill results from its Alamos Silver project in Sonora. With the latest results Minaurum has now tested 14 of the 20 veins systems in the project. Highlighted recent results comprise 3.80 m @ 415 gpt Ag, 2.68 gpt Au, 1.37% Cu, 6.2% Pb, 9.2% Zn (including 0.95 m @ 1,566 gpt Ag, 6.72 gpt Au, 4.48% Cu, 9.3% Pb, 10.1% Zn); 0.95 m @ 425 gpt Ag, 0.32% Cu, 3.2% Pb, 1.3% Zn; 1.95 m @ 261 gpt Ag; 0.90 m @ 337 gpt Ag; 0.90 m @ 307 gpt Ag; 1.05 m @ 134 gpt Ag, 0.31% Cu, 1.2% Pb, 3.9% Zn. Minaurum reports high grade silver intercepts in 10 of the 14 veins drilled to date, and plans to drill six more vein systems before beginning follow-up drilling on veins that have the potential to host volumes of high-grade mineralization similar to that of the historic Quintera and Promontorio mines.
  • Canasil Resources Inc. presented a review of its main projects in central Mexico. At La Esperanza, in Zacatecas, there is a series of epithermal veins on a 15 km long corridor, with drilling at the La Esperanza vein returning up 11.23 m true width (TW) @ 219 gpt Ag, 0.74 gpt Au, 0.9% Zn, 0.4% Pb (including 1.11 m @ 2,281 gpt Ag, 6.39 gpt Au, 2.2% Zn, 1.2% Pb.  At Salamandra, in Durango, a rhyolite dome intruding sedimentary rocks has returned drill intercepts of up to 9.5 m @ 102 gpt Ag, 0.5% Zn; 10.0 m @ 71 gpt Ag, 3.5% Zn, 1.3% Pb; 7.89 m @ 166 gpt Ag, 1.2% Cu, 1.2% Zn, 0.6% Pb (including 2.30 m @ 393 gpt Ag, 3.6% Cu, 2.8% Zn, 0.4% Pb). At Nora, in Durango, samples on epithermal veins have returned up to 1.0 m @ 1.98 gpt Au, 514 gpt Ag, 1.03% Cu, 3.3% Zn, 4.4 % Pb. At Vizcaino, in Zacatecas, the gold-anomalous Pamplona vein is 1 to 12 m in width over 2 km of length, with chalcedonic quartz hosted in rhyolites.
  • Megastar Development Corp. reported assay results from surface sampling at its Yautepec property in Oaxaca. Results from a sinter zone and a bounding quartz vein of 162 samples returned up to 308 gpt Ag, 1.07 gpt Au, 99 ppm Cu, 464 ppm Pb, 548 ppm Zn, 102 ppm Mo, 92,600 ppm (9.26%) As, 307 ppm Sb. These high numbers are very encouraging on a high-level epithermal system like the one exposed at this project.

ON MINING

  • Mexus Gold US. has piled 4,000 tons @ 2.8 gpt Au on the heap for leaching at its Santa Elena mine in Sonora (not to mistake for First Majestic’s Santa Elena mine, also in Sonora).
  • Fortuna Silver Mines Inc. reports a fatal accident involving a contractor’s employee at its San Jose mine in Oaxaca. “The accident involved a scooptram operating underground, and the individual fatally injured was the driver”.

ON FINANCING

  • Discovery Metals Corp. granted 5.3 M options to certain officers, directors, employees and/or consultants (Puerto Rico, Coahuila).
  • SilverCrest Metals Inc. closed the private placement with SSR Mining Inc., pursuant to which SSR elected to exercise its equity participation right to maintain a 9.9% interest in SilverCrest by investing C$4.56 M. Upon closing of this transaction, SSR Mining holds 9,000,645 common shares of SilverCrest (Las Chispas, Sonora).
  • Argonaut Gold Inc. entered into an agreement with Cormark Securities Inc. to act as lead underwriter of a syndicate of underwriters that are to buy shares of the company for aggregate gross proceeds of C$4 M (La Colorada, Sonora).
  • Avino Silver & Gold Mines Ltd. granted 526 K incentive options and 1.73 M restricted share units to its directors, officers, employees and consultants (Avino, Durango).
  • Millrock Resources Inc. announced the TSX Venture Exchange granted Millrock an extension of the deadline to file materials in respect of the private placement financing previously announced (Batamote, Sonora).
  • Sable Resources Ltd. announced the completion of distribution of 29.9 M common shares of Talisker Resources Ltd. to shareholders of the company. “The distribution of the Talisker Shares was effected as a reduction in the stated capital of the common shares of the Company…. The Company previously received the Talisker Shares in consideration for the assignment of certain mineral resource properties located in the Province of British Columbia on April 18, 2019” (Margarita, Chihuahua).
  • Kootenay Silver Inc. closed its non-brokered private placement financing for gross proceeds of $5 M. Finder fees totaling $200 K were paid to Mackie Research Capital Corp. with 1.25 M common shares issued and 625 K warrants (La Cigarra, Chihuahua).
  • Tamino Minerals Inc. announced its intentions to raise capital. Currently Tamino has issued 370.6 M shares, of which 220.8 M are restricted and 149.8 M are deemed free trading (El Volcan, Sonora).

ON RESOURCES AND DEVELOPMENT

  • Aura Minerals Inc. reported that a geophysical study at its Aranzazu mine in Zacatecas suggests the Glory Hole skarn may open down dip for a further 500 to 700 m from the current resource base, and also down plunge to southeast towards Cabrestante, which may represent potential for an increase of life of mine if confirmed by drilling.
  • SilverCrest Metals Inc. received approval from Secretaria de la Defensa Nacional (SEDENA) for the operational storage and use of explosives at its Las Chispas Project in Sonora. SilverCrest also acquired local water rights for Las Chispas and exercised its last outstanding option agreement to fully acquire the remaining four of the 28 concessions at Las Chispas, thereby obtaining 100% ownership in all Las Chispas mining concessions containing vein mineral resources.

ON DEALS AND CORPORATE ISSUES

  • Magna Gold Corp. completed the acquisition of the Las Marias property and las Cabanas mineral claims in Sonora“. Las Marias Property consists of 7 mining concessions covering 646 hectares adjacent to the Mercedes Property and Las Cabanas consists of 2 claims covering 248 hectares located approximately 10 km south-west of the Mercedes Property in Sonora, Mexico. The total purchase price for the new mineral concessions and other rights was $250,000 and the issuance of 1,000,000 common shares.”
  • GoGold Resources Inc. replaced the original option agreement for the Los Ricos property in Jalisco for a concession agreement. GoGold is now required to make a $500 K payment upon signing, $3.22 M to be paid on installments over 24 months, and 9.05 M shares of GoGold common shares to be delivered in equal numbers over 24 months. In addition, the company entered into an agreement to acquire the existing 2% NSR for $1 M in equal installments over 36 months and 4.87 M shares delivered in equal numbers over an 18 month period. This agreement is stated to save GoGold $5.4 M.
  • Torex Gold Resources Inc. entered into a series of no-cost collar hedges, with 96 K Oz Au hedged over the next 12 months. “The floor price of the monthly gold collars has been set at $1,400/oz with the ceiling price of the collars ranging from $1,666/oz in September 2019 to $1,768/oz in August 2020.”
  • Bacanora Lithium PLC. informed the agreements with Ganfeng Lithium Co. Ltd. have been submitted to the Chinese authorities for approval and completion. With the already received approvals by the PRC Ministry of Commerce and the National Development and Reform Commission, it is anticipated that the final approval from the State Administration of Foreign Exchange will be received following a Ganfeng board meeting to be held in the coming weeks (Sonora Lithium project, Sonora).

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

On the image below: Ricardo Ramonett collecting a stream sediment sample in Oaxaca. Picture by Jorge Cirett

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