Pillow Lavas

By Miguel A Heredia

During the 49^thweek of the year (December 2^ndto December 8^th 2024), at least 24 press releases were announced by companies working in Mexico, and 3 news published by the media, with eleven disclosing deals and corporate issues, six reporting resources and development of their properties, three communicating production and financial results, three announcing financing rounds, three commenting on Mexican issues, and one informing on exploration results. ON MEXICO ISSUES, Mexican Senators approved the Federal Law of Rights 2025 in particular and now began the analysis and discussion of the Federal Income Law of the following year. Federal government proposed an increase in mining rights in the Federal Rights Law 2025. Impact Silver, Silver Storm, Heliostar, and Torex Gold reported the best drilling intercepts in Mexico on the first week of December, 2024. ON EXPLORATION, In Chihuahua, Kingsmen identified a significant new drill target called Saddle at its 100% owned Las Coloradas project in Chihuahua. ON MINING, Sierra Metals provided production and cost guidance for 2025 for its Bolivar mine in Chihuahua. Minera Alamos reported production results from its Santana mine in Sonora. Gold Resource provided an update on its operational and liquidity status as of December 2, 2024 (Don David Gold Mine, Oaxaca). ON FINANCING, Fortuna announced progress on its share buyback program (San Jose mine, Oaxaca). DynaResource announced the successful repayment of its temporary additional credit line with Ocean Partners Holdings Limited (San Jose de Gracia project, Sinaloa). Minera Alamos closed a bought deal private placement for gross proceeds of CADS $8,499,900 (Santana mine, Sonora). ON RESOURCES AND DEVELOPMENT, Silver Tiger commenced an underground drilling program at its El Tigre project in Sonora. Oroco provided a corporate update regarding its Santo Tomas project in Sinaloa. Impact Silver released results from its ongoing drill program on the Tres Amigos Zone at its Plomosas mine in Chihuahua. Silver Storm announced results from five holes drilled at its Parrilla mine in Durango. Heliostar released additional results from its 2024 drill program at its 100% owned Ana Paula project, Guerrero. Torex Gold reported results from its 2024 El Limon Guajes underground drilling program. ON DEALS AND CORPORATE ISSUES, Apolo Silver provided a corporate update (Cinco de Mayo project, Chihuahua). Regency Silver announced the appointment of a new member to its Board of Directors (Dios Padre project, Sonora). Chesapeake filed appeal upholding the cancellation of the San Vicente 3 mineral concession (Metates project, Durango). Heliostar announced the appointment of Ramon Tomas Dávila Flores to its Board of Directors (Ana Paula project, Guerrero). Oroco Resource provided an update regarding its upcoming annual general meeting scheduled for December 12, 2024 (Santo Tomas project, Sinaloa). Osisko Development announced the appointment of a new member to its Board of Directors (San Antonio Gold project, Sonora). Teck Resources reported the appointment of its Vice President, Investor Relations (San Nicolas project, Zacatecas). Torex communicated three fatalities at the El Limon Guajes underground mine, Guerrero. First Majestic announced the effectiveness of its Registration Statement on Form F-4 related to its acquisition of Gatos Silver, Inc. Gatos Silver communicated date of special meeting of stockholders and filing of definitive proxy statement (Cerro Los Gatos mine, Chihuahua). ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUE

Mexican Senators approved the Federal Law of Rights 2025 in particular and now began the analysis and discussion of the Federal Income Law to increase its collection during 2025 in activities such as mining, immigration services and use of Protected Natural Areas, and also start charging aviation schools and cruise passengers. In the Federal Rights Law 2025, the rate of special mining rights is increased for the following year from 7.5 to 8.5% on the income obtained by the holders of mining concessions derived from the alienation or sale of the extractive activity. In addition, the rate of extraordinary mining rights is raised from 0.5 to 1.0% on the income obtained by mining concessionaires derived from the sale of gold, silver and platinum. The Morena senator, Ochoa Fernández, explained that these increases in mining rights rates are made to address the increase in international metal prices. The fees for the use or exploitation of the 181 Protected Natural Areas (ANP) at the federal level are also raised by 100%.
Federal government proposed an increase in mining rights in the Federal Rights Law 2025, which is about to be approved in the Senate of the Republic. It comes after in 2024 its collection has fallen by almost a third. In January-September 2024, the government collected MXP $6,205.60M (approx USD $305.7M) for special mining rights and extraordinary mining rights, according to the latest quarterly report from the Ministry of Finance and Public Credit (SHCP) to the Congress of the Union, while in the same period of 2023, the collection of said rights amounted to MXP $9,177.71M pesos (approx USD $452.1M), so this year collection has fallen 32% in real terms. The SHCP proposes to increase the special mining right rate from 7.5 to 8.5% on the income obtained by the holders of mining concessions derived from the alienation or sale of the extractive activity. In addition, it seeks to increase the rate of extraordinary mining rights from 0.5 to 1.0% on the income obtained by mining concessionaires derived from the sale of gold, silver and platinum. For the special right on mining, the federal government has collected MXP $5,422.70M (approx USD $267.1M) in the first nine months of 2024 (an annual drop of 34%), while for the extraordinary right on mining it has obtained MXP $782.9M (approx USD $38.6M) (17% less than in 2023). In addition to these rights, in Mexico two others are charged for this activity: the right for mining concessions and assignments, and also the additional right on mining. No increases are proposed for these two rights. In total for the four rights, the federal government has collected MXP $8,981.80M (approx USD $442.5M) at the end of September 2024, a drop of 26% annually. In the Federal Law of Rights 2025, which will be discussed today in the plenary session of the Senate of the Republic together with the Federal Income Law, the rights charged for immigration services, as well as for the use and use of Protected Natural Areas. The Morena deputy, Alfonso Ramírez Cuéllar, has assured that with these reforms to the Federal Rights Law, “a budget of more than MXP $140,000M (approx USD $6,896.6M)” will be obtained with respect to what is collected from rights in 2024.
Impact Silver Corp., Silver Storm Mining Ltd., Heliostar Metals Limited, and Torex Gold Resources Inc., reported the best drilling intercepts in Mexico on the first week of December, 2024. Details are shown in the table below:

ON EXPLORATION

Kingsmen Resources Ltd., identified a significant new drill target called Saddle at its 100% owned Las Coloradas project in Chihuahua. It is part of its ongoing field reconnaissance in preparation for an upcoming drill program. The Saddle target is situated between two magnetic highs, where a deep wedge of volcanics and sediments, along with veins and structures, are believed to underlie surface precious metal anomalies. The area revealed anomalous values of gold and silver, along with other metals such as copper, lead, and zinc, associated with quartz-carbonate veins. This geochemical anomaly is both within and adjacent to the targets indicated by geophysical surveys. The geophysical data suggests the potential for discovering significant blind mineralization in this area.

ON MINING

Sierra Metals Inc., provided production and cost guidance for 2025 for its Bolivar mine in Chihuahua. The company expects to produce between 25.1M-27.4M Lb Cu, 680K-740K Oz Ag, and 7.4K-8.1K Oz Au at cash and AISC of $2.64-$2.77 and $3.45-$3.62 per Lb CuEq respectively.
Minera Alamos Inc., reported production results from its Santana mine in Sonora (All currency reported is Canadian dollars). In Q3, 2024, the company staked 3,800 Oz Au on the leach pad. As of September 30, 2024, recoverable gold inventory on the leach pad totaled 8,199 Oz Au. Subsequent to the quarter end, mining and stacking activities continued to increase with a total of 1,788 Oz Au mined in the month of October, of which 1,585 Oz Au were stacked on the heap leach pad with the remainder stockpiled for crushing prior to placement on the heap leach pad. The average grade of mineralized material mined during Q3-2024 (and October) was 0.60 g/t. The company also reported deferred revenue of $3.45M in exchange for the sale of 1,000 Oz Au; loss from the re-start of mine operations of $436.2K; and cash and cash equivalents of $5.96M.
Gold Resource Corporation provided an update on its operational and liquidity status as of December 2, 2024. The company reported improvements in production at the Don David Gold Mine, Oaxaca during November, attributed to effective mine planning and resolution of previous operational issues. This led to slightly better than break-even cash flow for the month, aided by high metal prices and a favorable exchange rate. Despite these improvements, the company expressed concerns about its available cash balance and indicated that additional funding is necessary for mining equipment, mill upgrades, and working capital to support future production in the Three Sisters and Splay 31 areas. Without this capital, the company anticipates challenges in maintaining break-even cash flow beyond the first quarter of 2025. Additionally, Gold Resource Corporation identified an overpayment of approximately USD $3.8M in Mexican taxes for 2023 and has submitted a refund request, expected to be processed in 2025, although the timing remains uncertain.

ON FINANCING

Fortuna Mining Corp., announced progress on its share buyback program. It has repurchased an aggregate of 6,402,640 common shares on the open market of the New York Stock Exchange. Shares were repurchased at a weighted-average price of $4.77 per common share for a total gross amount of $30,529,066, excluding brokerage fees; these shares will be cancelled. To date, the Company has repurchased 41.88 percent of the 15,287,201 shares it is authorized to repurchase under the Normal Course Issuer Bid (San Jose mine, Oaxaca).
DynaResource Inc., announced the successful repayment of its temporary additional credit line (TACL) with Ocean Partners Holdings Limited. The company recently fulfilled its obligation to repay USD $4M TACL due November 30, 2024, payable alongside USD $5.85M outstanding balance of the revolving credit line (RCL). Upon full repayment of the TACL and RCL, the maximum principal amount under the RCL was increased to USD $12.5M. The company has drawn down USD $9.85M, with interest accruing at the same rate as the ongoing and outstanding RCL with Ocean Partner (San Jose de Gracia project, Sinaloa).
Minera Alamos Inc., closed a bought deal private placement for gross proceeds of CADS $8,499,900 by selling 28,333,000 common shares at a price of CAD $0.30 per common share. Net proceeds will be used to fund the expansion and development of its Santana open-pit, heap-leach mine in Sonora, to fund the exploration and development activities at its Cerro de Oro Project in northern Zacatecas and for working capital and general corporate purposes.

ON RESOURCES AND DEVELOPMENT

Silver Tiger Metals Inc., commenced an underground drilling program at its El Tire project in Sonora, focusing on high-grade vein, sulfide, and shale zones. The company aims to deliver a Preliminary Economic Assessment (PEA) for the underground component by the first half of 2025. This initiative follows the successful completion of the near-surface open pit portion of the project, highlighting the significant exploration potential in the area, which is estimated to contain 10 to 12M tonnes at 225 to 265 g/t AgEq, equating to 73 to 100M Oz AgEq.
Oroco Resources Corp., provided a corporate update regarding its Santo Tomas project in Sinaloa, highlighting ongoing preparations for Phase 2 technical work. The project has shown a compelling economic case with a 22.6-year Life of Mine and a post-tax NPV of USD $1.48 B. The company is closely monitoring legal and regulatory changes in Mexico, particularly under the new administration of President Claudia Sheinbaum, to ensure continued support for its mining activities. Key initiatives include defining community investment opportunities, expanding technical programs for updated resource estimates, specifically including elevated resource classifications and an expanded Indicated Resource at South Zone sufficient to support a PFS-level technical report, and enhancing shareholder engagement. The update emphasizes Oroco’s positive outlook for the project’s future development and its potential as a capital-efficient, large-scale copper project.
Impact Silver Corp., released results from its ongoing drill program on the Tres Amigos Zone at its Plomosas mine in Chihuahua. Drilling highlights are shown in the table below:

All these Tres Amigos area drillholes are beyond the current active mining area and lie outside the JORC mineral resource. The Tres Amigos Zone remains open for exploration and drilling is continuing.

Silver Storm Mining Ltd., announced results from five holes drilled at the Norte-Sur Zone, within the Quebradillas mine within its Parrilla mine in Durango. Drilling highlights are shown in the table below:

The current drill results, when combined with historical holes drilled by First Majestic, are expected to have a positive impact on future Mineral Resources.

Heliostar Metals Ltd., released additional results from its 2024 drill program at its 100% owned Ana Paula project, Guerrero. Drilling highlights are shown in the table below:

Results continue to expand the High Grade Panel (HGP) and locally increase grades.

Torex Gold Resources Inc., reported results from its 2024 El Limon Guajes (ELG) underground drilling program. Drilling highlights are shown in the table below:

The results to date support the company’s target of extending the mine life of ELG underground by identifying new zones of higher-grade mineralization, expanding resources, and replacing and growing reserves.

ON DEALS AND CORPORATE ISSUES

Apolo Silver Corp., provided a corporate update, highlighting significant developments in 2024. The company successfully optioned the high-grade Cinco de Mayo Silver Project in Chihuahua and completed a CAD $13.5M financing, bolstering its treasury. To satisfy the option, and acquire a 100% interest in Cinco de Mayo, the company must first obtain the necessary licensing and permits to access the property and conduct mining activities on Cinco de Mayo, followed by completing no less than 20,000m of exploration drilling within five years. New leadership was added to strengthen the board and management team. The company is focused on advancing its silver exploration and resource development projects while maintaining strong community relations and securing necessary permits for operations at Cinco de Mayo project.
Regency Silver Corp., announced the appointment of a new member to its Board of Directors (Dios Padre project, Sonora).
Chesapeake Gold Corp., filed an appeal with the Collegiate Court in Mexico against a decision by the North Center III and Auxiliary Regional Chamber of the Federal Court of Administrative Justice, which upheld the cancellation of the San Vicente 3 mineral concession by the Dirección General de Minas (DGM). The company argued that the Chamber incorrectly determined that the DGM followed the required cancellation procedures, claiming this violated their fundamental rights, including due process and effective judicial protection (Metates project, Durango).
Heliostar Metals Limited announced the appointment of Ramon Tomas Dávila Flores with immediate effect to its Board of Directors (Ana Paula project, Guerrero).
Oroco Resource Corp., provided an update regarding its upcoming annual general meeting (AGM) scheduled for December 12, 2024. Due to a Canada Post strike, the meeting materials have been made available online, and shareholders are encouraged to access them directly. Shareholders can vote by proxy, with a deadline set for December 10, 2024 (Santo Tomas project, Sinaloa).
Osisko Development Corp., announced the appointment of a new member to its Board of Directors (San Antonio Gold project, Sonora).
Teck Resources Limited reported the appointment of its Vice President, Investor Relations effective December 1, 2024 (San Nicolas project, Zacatecas).
Torex Gold Resources Inc., regretfully communicated three fatalities at the El Limon Guajes underground mine, Guerrero. During the day shift on December 5th, a fatal carbon monoxide gas exposure occurred, which claimed the lives of two employees and one contractor at the El Limón Guajes underground mine. A fourth contract employee was also in the area and is currently in hospital and expected to recover. Underground have been suspended and an investigation to determine the cause of the accident will commence shortly.
First Majestic Silver Corp., announced the effectiveness of its Registration Statement on Form F-4 related to its acquisition of Gatos Silver, Inc. A special meeting for First Majestic shareholders is scheduled for January 14, 2025, to approve the issuance of common shares to Gatos stockholders. The record date for this meeting is November 25, 2024, and meeting materials are expected to be sent out around December 9, 2024. However, some Canadian shareholders may experience delays due to a Canada Post labour dispute. Both First Majestic and Gatos require shareholder approvals for the transaction, which is anticipated to close in early 2025, subject to certain conditions. The announcement also includes important information for investors regarding the transaction and the necessary documentation that will be available for review.
Gatos Silver Inc., communicated a special meeting of stockholders scheduled for January 14, 2025, to discuss the proposed merger with First Majestic Silver Corp. and filing of definitive proxy statement. The Board of Directors of Gatos Silver recommends that stockholders vote in favor of the merger. First Majestic shareholders will also hold a meeting on the same day to approve the issuance of shares related to the transaction. The merger is expected to close in early 2025, pending necessary approvals. Additionally, Gatos Silver plans to send out meeting materials to stockholders around December 6, 2024, although some deliveries may be affected by a labor dispute in Canada. The announcement includes important information for investors regarding the transaction and encourages them to read the relevant documents filed with regulatory authorities (Cerro Los Gatos mine, Chihuahua).

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, pillow lavas from the Chilitos Formation in the famous mining district of Zacatecas, Mexico. Photo taken by Miguel A Heredia.

The Mining and Exploration News in Mexico: Highlights on the First Week of November, 2024

November 10, 2024November 10, 2024 / gambusinoprospectormexico / Leave a comment

Onyx Vein

By Miguel A Heredia

During the 45^thweek of the year (November 4^thto November 10^th 2024), at least 29 press releases were announced by companies working in Mexico, and 2 news published by the media, with fourteen communicating production and financial results, ten disclosing deals and corporate issues, four announcing financing rounds, two commenting on Mexican issues, and one reporting resources and development of their properties. ON MEXICO ISSUES, The Mexican Mining Chamber (Camimex) announced that it foresees a decline in mining investments in Mexico to USD $3.8 billion in 2025, which would imply its lowest level in the last nine years. ON EXPLORATION, no relevant news. ON MINING, Aura Minerals reported Q3, 2024 production results and provided 2024 production guidance (Aranzazu mine, Zacatecas). Endeavour announced results from their Mexican operations for the three and nine months ended September 30, 2024. Alamos Gold reported Q3, 2024 production and financial results from its Mulatos Mining District, Sonora. Fortuna Mining announced Q3, 2024 financial results from its San Jose mine, Oaxaca. Pan America released Q3, 2024 production results from its La Colorada mine in Zacatecas-Durango, and from its Dolores mine in Chihuahua. Sierra Metals reported Q3, 2024 production results from its Bolivar mine, Chihuahua. Gold Resource announced Q3, 2024 production and financial results from its Don David Gold mine, Oaxaca. Torex reported Q3, 2024 production and financial results from its El Limon-Guajes Mine Complex, Guerrero. Gold Royalty announced Q3, 2024 operating and financial results (Cozamin mine, Zacatecas). Americas Gold and Silver released Q3, 2024 production results from its Cosala mine, Sinaloa. First Majestic announced Q3, 2024 production results from their Mexican operations. Equinox Gold reported Q3, 2024 consolidated production and financial results (Los Filos mine, Guerrero). Sandstorm Gold Royalty announced Q3, 2024 production and financial results (Mercedes mine, Sonora). Altius Minerals reported Q3, 2024 attributable royalty revenue (Cuale project, Jalisco). ON FINANCING, Heliostar reported the closing of two previously announced debt facilities for aggregate gross proceeds of $10M (Ana Paula project, Guerrero). Luca recommenced its principal repayments on its terms loan with Trafigura Mexico S.A.de C.V. (Tahuehueto mine, Durango). ON RESOURCES AND DEVELOPMENT, Teck provided an update on its San Nicolas project in Zacatecas. ON DEALS AND CORPORATE ISSUES, Aura Minerals approved an amendment to its dividend policy to declare and pay dividends on a quarterly basis (Aranzazu mine, Zacatecas). Chesapeake granted stock options to officers of the company (Metates project, Durango). Hecla announced the appointments of its new President and CEO and its new Vice President and Chief Operating Officer (San Sebastian property, Durango). Silver Spruce reported results from its annual general meeting of shareholders (Pino de Plata project, Chihuahua). Vizsla Silver received firstly a conditional approval, which then turned into a final approval to graduate from the TSX Venture Exchange and list its common shares on the Toronto Stock Exchange (Panuco project, Sinaloa). Luca Mining announced the resignation of its VP Technical (Tahuehueto mine, Durango). Florida Canyon communicated the completion of its previously announced sale of its Mexican Business Unit to Heliostar Metals. Minaurum acquired a 100% interest in five-royalty free claims covering the core position of its Aurifero project in Sonora. Almadex Minerals announced on November 7, 2024, the acquisition of 14,174,056 common shares of Azucar Minerals Ltd (San Pedro project, Jalisco). ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUE

The Mexican Mining Chamber (Camimex) announced that it foresees a decline in mining investments in Mexico to USD $3.8 billion in 2025, which would imply its lowest level in the last nine years. Pedro Rivero, president of Camimex, explained that the main factor in this trend is that no new mining concession has been granted since the beginning of the last federal government administration to date. Camimex also predicted that after receiving USD $543M in mining exploration in 2023, the expected arrivals in this area are estimated at USD $500M for 2024 and USD $400M for 2025.
An armed group in Zacatecas, stole six gondolas loaded with 240 tonnes of mineral concentrates that were towed by three trucks that had left the Peñasquito mine, dedicated to the extraction of gold and silver in the country. The mine located in Zacatecas, owned by the American transnational Newmont Corporation, is the largest gold mine in Mexico and the second in terms of silver production. The company, which operates in the municipality of Mazapil, in Zacatecas, explained that local and federal authorities deployed an operation in which they managed to recover part of the stolen goods; however, the National Guard explained that “apparently there were other tractor-trailers that were able to hook the remaining 6 gondolas and remove them from the area.” “The security forces deployed an intense operation on Saturday in the areas of the Peñasquito and Camino mines to try to locate the gondolas or the stolen material, but it was not completely located,” said the National Guard.

ON EXPLORATION

No relevant news.

ON MINING

Aura Minerals Inc., reported Q3, 2024 results and provided a 2024 production guidance. The company produced 24,486 Oz AuEq in Q3, 2024 from its Aranzazu mine in Zacatecas. It also provided 2024 production guidance and announced that it expects to produce between 94K-108K Oz AuEq at cash and AISC of USD $826-$1,109 and USD $1,089-$1,331 per Oz AuEq produce respectively.
Endeavour Silver Corp., Endeavour announced results from their Mexican operations for the three and nine months ended September 30, 2024 (all amounts are in US dollars). At Guanacevi, Durango, the company processed 67,094 tonnes in Q3, 2024, to produce 766.6K Oz Ag payable (995.15K Oz AgEq) at cash, AISC and total production costs of $19.59, $30.83, and $24.68 per Oz Ag respectively, while in the nine months ended September 30, 2024 it processed 294,995 tonnes to produce 3.29M Oz Ag payable (4.2M Oz AgEq) at cash, AISC, and total production costs of $17.24, $24.96, and $22 per Oz Ag respectively. At Bolañitos, Guanajuato, the company processed 107,971 tonnes in Q3, 2024, to produce 100.7K Oz Ag payable (622.8K Oz AgEq) at cash, AISC, and total production costs of ($51.38), ($14.98), and ($27.25) per Oz Ag respectively, while in the nine months ended September 30, 2024 it processed 320,853 tonnes to produce 330.6K Oz Ag payable (1.85M Oz AgEq) at cash, AISC, and total production costs of ($30.97), $3.77 and ($6.34) per Oz Ag respectively. Consolidated results are shown in the table below:

Alamos Gold Inc., reported Q3, 2024 production and financial results from its Mulatos Mining District, Sonora (all amounts expressed in US dollars). The company produced 50,500 Oz Au at Mulatos Mining District, consisting of 12,600 Oz Au from residual leaching at Mulatos mine, and 37,900 Oz Au from La Yaqui Grande open pit after processing 978,139 tonnes of 1.36 g/t Au with a metallurgical recovery of 90%. Alamos Gold sold 48,793 Oz Au in Q3, 2024, with a cost of sales of $1,398 per Oz Au sold, and cash and AISC of $937 and $1,002 per Oz Au sold respectively. The company reported operating revenues of $122.8M; costs of sales of $68.2M; earnings from operations of $51.1M; cash provided by operating activities of $70M; mine-site free cash flow of $66.9M; and capital expenditures of $3.1M. Alamos also provided a 2024 production guidance and estimates to produce between 185K-195K Oz Au, at total cash and AISC of $$925-$975and $1,000-$1,050 per Oz Au respectively, with a total sustaining and growth capital of $5-10M; and total capital expenditures and capitalized expenditures of $14-$19M.
Fortuna Mining Corp., announced Q3, 2024 production results from its San Jose Mine, Oaxaca. The company processed 188,212 tonnes with 99 g/t Ag and 0.74 g/t Au with metallurgical recoveries of 86% and 85% respectively to produce 510.7K Oz Ag and 3,771 Oz Au. Fortuna sold 533.8K Oz Ag and 3,941 Oz Au at cash and AISC of USD $29.40 and USD $ 32.65 per Oz AgEq respectively at realized prices of USD $29.45 per Oz Au and USD $2,484 per Oz Ag.
Pan American Silver Corp., released Q3, 2024 production results from its La Colorada mine in Zacatecas-Durango, and from its Dolores mine in Chihuahua. At La Colorada mine, the company produced 1.3M Oz Ag and 0.9K Oz Au at cash and AISC of USD $19.59 and USD $22.25 per Oz Ag respectively. At Dolores mine, Chihuahua, it produced 442K Oz Ag and 18.4K Oz Au at cash and AISC of USD $1,296 and USD $1,262 per Oz Au respectively.
Sierra Metals Inc., reported Q3, 2024 production results from its Bolivar mine, Chihuahua (all amounts are expressed in USD dollars). It processed 401,731 tonnes to produce 9.67M Lb CuEq at cash and AISC of $2.42 and $3.23 per Lb CuEq respectively. Sierra Metals reported total cash cost of $16.88M; total cash cost of sales of $23.41M; and sustaining capital expenditures of $7.76M. The company also provided its 2024 production guidance and expects to produce between 23.0-27.6M Lb Cu, 650K-750K Oz Ag, and 8K-9.2K Oz Au at cash and AISC of $2.56-$2.72 and $3.29-$3.36 per Lb CuEq respectively.
Gold Resource Corporation announced Q3, 2024 production and financial results from its Don David Gold mine, Oaxaca. The company milled 83,690 tonnes of 0.54 g/t Au, 83 g/t Ag, 0.19% Cu, 1% Pb, and 2.6% Zn to produce and sold 1,357 Oz Au, 181.4K Oz Ag, 219.5K Lb Cu, 1.29M Lb Pb, and 3.9M Lb Zn (3,526 Oz AuEq), at average sale metal prices realized of $2,561/Oz Au, $30.61/Oz Ag, $8,832/tonne Cu, $2,065/tonne Pb, and $2,854/tonne Zn. Total cash and AISC after co-product credits were $3,560 and $5,073 per Oz AuEq. Gold Resource also reported total sales of $13.27M; production costs of $17.2M; operating cash flows of ($ 3.37M), net loss of $10.5M or $0.11 per share; working capital of $6.1M; and cash balance of $1.4M as September 30, 2024.
Torex Gold Resources Inc., reported Q3, 2024 production and financial results from its El Limon-Guajes Mine Complex, Guerrero (all amounts expressed in US dollars). The company produced 119,412 Oz Au and sold 122,130 Oz Au at cash and AISC of $926 and $1,101 per Oz Au respectively at an average realized price of $2,313 per Oz Au, or 122,525 Oz AuEq produced and 125,414 Oz AuEq sold at cash and AISC of $969 and $1.139 per Oz AuEq respectively. The company reported revenue of $313.7M; cost of sales of $170.1M; earnings from mine operations of $143.6M; net income of $29.2M or $0.34 per both basic and diluted share; adjusted net earnings of $65.5M or $0.76 per basic share and $0.75 per diluted share; EBITDA of $155.3M; adjusted EBIDTA of $152.4M; net cash generated from operating activities of $149.5M; net cash generated from operating activities before changes in non-cash operating working capital of $137.6M; cash and cash equivalents of $114.5M; and available liquidity of $346.6M.
Gold Royalty Corp., announced Q3, 2024 operating and financial results. The company owns 1% NSR royalty over the southeastern portion of the property at Cozamine mine, Zacatecas and reported that the Q3, 2024 production was 2% higher than the Q3, 2023 due to higher mill throughput driven by mine sequencing. Grades and recoveries were consistent with the same period last year.
Americas Gold and Silver Corporation released Q3, 2024 production results from its Cosala mine, Sinaloa (all amounts expressed in US dollars). The company produced 192K Oz Ag, 8.4M Lb Zn, and 2.6M Lb Pb at cash and AISC of $7.12 and $11.12 per Oz Ag respectively. Cash cost of sales reported by Americas Gold and Silver was $8.36M.
First Majestic Silver Corp., announced Q3, 2024 production and financial results from their Mexican operations (all amounts are in US dollars). Figures of their three mines are shown in the table below:

Equinox Gold Corp., reported Q3, 2024 consolidated production and financial results. The company produced 173,983 Oz Au and sold 173,973 Oz Au at an average realized gold price of USD $2,461 per Oz and cash and AISC of USD $1,720 and USD $1,994 per Oz Au respectively (Los Filos mine, Guerrero).
Sandstorm Gold Royalties announced Q3, 2024 production and financial results and reported 17,359 attributable Oz AuEq (Mercedes mine, Sonora).
Altius Minerals Corporation reported Q3, 2024 attributable royalty revenue of USD $16.6M and adjusted earnings of USD $2.6M (Cuale project, Jalisco).

ON FINANCING

Heliostar Metals Ltd., reported the closing of two previously announced debt facilities for aggregate gross proceeds of $10M to support its acquisition of assets from Florida Canyon Gold Inc. The Company expects to complete the acquisition on November 6, 2024 (Ana Paula project, Guerrero).
Luca Mining Corp., recommenced its principal repayments on its terms loan with Trafigura Mexico S.A.de C.V., and is on track to eliminate its term debt in 2026. Luca has outstanding loans with Trafigura totaling USD $18.1M. This total includes a non-interest-bearing convertible loan of USD $5.8M due in January 2027. The remaining USD $12.3M in term debt is scheduled for repayment by mid-2026, offering the company added financial flexibility (Tahuehueto mine, Durango).

ON RESOURCES AND DEVELOPMENT

Teck Resources Limited provided an update on its San Nicolas project in Zacatecas, which is in partnership with Agnico Eagle Mines Limited (Teck 50% / Agnico 50%). San Nicolas is a low capital cost, low-complexity copper-zinc project, with an estimated production of 63K tonnes per year (tpa) copper and 147 k tpa zinc over the first five years. Feasibility study and execution strategy progressing with potential sanction decision in H2 2025 (Teck estimated funding requirement USD $0.3-0.5 billion).

ON DEALS AND CORPORATE ISSUES

Aura Minerals Inc., approved an amendment to its dividend policy to declare and pay dividends on a quarterly basis. The company paid a dividend of USD $0.24 per common share (approximately USD $17.4M in total) based on Aura´s financial results for the three months ending September 30, 2024 (Aranzazu mine, Zacatecas).
Chesapeake Gold Corp., granted stock options to officers of the company to purchase an aggregate of 65,000 common shares of the company at an exercise price of CAD $1.80 per share for a five-year term expiring November 5, 2029 (Metates project, Durango).
Hecla Mining Company announced the appointments of its new President and CEO and its new Vice President and Chief Operating Officer, both effective November 7, 2024 (San Sebastian property, Durango).
Silver Spruce Resources Inc., reported results from its annual general meeting of shareholders (Pino de Plata project, Chihuahua).
Vizsla Silver Corp., received firstly a conditional approval, which then turned into a final approval to graduate from the TSX Venture Exchange (TSXV) and list its common shares on the Toronto Stock Exchange (TSX). Upon receipt of the final TSX approval, the common Shares will be delisted from the TSXV and commence trading on the TSX under the symbol “VZLA”. The common shares will continue to trade on the NYSE American under the symbol “VZLA” (Panuco project, Sinaloa).
Luca Mining Corp., announced the resignation of its VP Technical to pursue a new career opportunity (Tahuehueto mine, Durango).
Florida Canyon Gold Inc., communicated the completion of its previously announced sale of its interests in the San Agustin mine, Durango, El Castillo mine, Durango, La Colorada mine, Sonora, Cerro del Gallo project, Guanajuato, and San Antonio project, Baja California Sur to Heliostar Metals Ltd., for cash consideration of USD $5M and an additional USD $5M in cash generated from operating cash flow after July 16, 2024. As a result of the transaction, Florida Canyon no longer holds assets in Mexico, and Heliostar has assumed all responsibilities for the Mexican Business Unit, including reclamation.
Minaurum Gold Inc., acquired a 100% interest in five-royalty free claims covering the core position of its Aurifero project in Sonora, and also extended its option agreement to acquire the remaining claims by another three years. With these acquisitions, Minaurum now control over 95% of this high-grade gold district.
Almadex Minerals Ltd., announced on November 7, 2024, the acquisition of 14,174,056 common shares of Azucar Minerals Ltd., for $0.015 per share, totaling approximately $ 212,610.84. The Acquisition was a private transaction and did not occur on a stock exchange or other securities market. This acquisition, conducted through a private agreement with Newcrest Canada Holdings Inc., increases Almadex’s ownership in Azucar to 29.87% of the outstanding shares. Prior to this transaction, Almadex and its associates held 7,881,529 shares, representing 10.68%. The acquisition was made under the “private agreement exemption” of NI 62-104 Take-Over Bids and Issuer Bids (San Pedro project, Jalisco).

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, onyx vein in a low sulphidation epithermal vein in a project in San Luis Potosi, Mexico. Photo taken by Miguel A Heredia.

The Mining and Exploration News in Mexico: Highlights on the Fourth Week of October, 2024

October 27, 2024 / gambusinoprospectormexico / Leave a comment

Jasperoid related to an epithermal vein system

By Miguel A Heredia

During the 43^thweek of the year (October 21^stto October 27^th 2024), at least 32 press releases were announced by companies working in Mexico, with nine disclosing deals and corporate issues, nine communicating production and financial results, six reporting resources and development of their properties, five announcing financing rounds, two informing on exploration results, and one commenting on Mexican issues. ON MEXICO ISSUES, Kootenay reported the best drilling intercepts in Mexico on the fourth week of October, 2024. ON EXPLORATION, In Chihuahua, Kootenay released results from 4 holes drilled at its Columba project. In Sinaloa, Centenario Gold reported that it plans to initiate a second phase drill program in early 2025 at its Eden property. ON MINING, Fortuna Mining announced that it will release its Q3, 2024 financial results on November 3, 2024 (San Jose Mine, Oaxaca). Starcore announced the resumption of operations at its San Martin mine in Queretaro. MAG Silver reported Q3, 2024 production results from its Juanicipio mine in Zacatecas. Santacruz released Q3, 2024 production results from its Zimapan mine in Hidalgo. Gold Royalty announced strong Q3, 2024 revenue, driven by the company´s cash flowing royalties (Cozamin, Zacatecas). Gold Resource reported preliminary Q3, 20243 production results from its Don David mine in Oaxaca. Equinox announced that it will release its unaudited financial and operating results for the three and nine months ended September 30, 2024 on Wednesday, November 6, 2024 (Los Filos mine, Guerrero). Newmont reported Q3, 2024 production results from its Peñasquito mine in Zacatecas. Fresnillo plc released Q3, 2024 production results from their Mexican operations. ON FINANCING, Guanajuato Silver announced a non-brokered private placement for gross proceeds of up to CAD $8M, the same that later on was modified to CAD $8.62M (Valenciana Mine Complex, Guanajuato). Prismo reported that it entered into debt settlement agreements with certain creditors of the company (Palos Verdes project, Sinaloa). Kingsmen announced a non-brokered private placement for gross proceeds of up to $1M (Las Coloradas project, Chihuahua). Osisko Development announced an oversubscribed and fully allocated private placement financing for gross proceeds of USD $57.5M (San Antonio project, Sonora). ON RESOURCES AND DEVELOPMENT, Goldgroup reported results of an independent metallurgical testing conducted at its Cerro Prieto mine in Sonora. Endeavour Silver provided a Q3, 2024 construction progress update on its Terronera property in Jalisco. Chesapeake provided a metallurgical update for its Metates property in Durango. Sierra Madre announced a test mining throughput at its la Guitarra mine complex in Estado de Mexico. Silver Tiger released results of a preliminary feasibility study (PFS) for its El Tigre project in Sonora. Luca Mining commenced an underground exploration program at its Tahuehueto mine in Durango. ON DEALS AND CORPORATE ISSUES, Quetzal Copper announced results of its annual general meeting of shareholders (Cristinas project, Chihuahua). Silver Storm reported that the trading of its shares on the TSX Venture Exchange has been suspended due to its failure to file its annual financing statements, management´s discussion and analysis, and related officer certifications. (La Parrilla Mine, Durango). Starcore announced management changes of its Board of Directors (San Martin mine, Queretaro). GR Silver reported the replacement of its CEO (Plomosas project, Sinaloa). Heliostar received regulatory approval for the acquisition of the Mexican business unit from Florida Canyon (San Agustin and El Castillo mines in Durango, plus other assets). Florida Canyon received regulatory approval for the sale of its Mexican business unit to Heliostar (San Agustin and El Castillo mines in Durango, plus other assets). Centenario Gold amended its Eden property option agreement located near Cosala, Sinaloa. Southern Silver reported results from its annual general meeting of shareholders (Cerro Las Minitas project, Durango). Fuerte Metals reported that its common shares have been approved to trade on the OTC Market’s Group Inc.’s OTCQB Venture Market (Cristina project, Chihuahua). Xali Gold announced that Kappes, Cassiday and Associates (KCA) is progressing well on the El Oro tailings project in Mexico, having made a recent payment of USD $1M as part of the purchase agreement. ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUE

Kootenay Silver Inc., reported the best drilling intercepts in Mexico on the fourth week of October, 2024. Details are shown in the table below:

ON EXPLORATION

Kootenay Silver Inc., released results from 4 holes drilled at its Columba project, Chihuahua. The batch reported herein comprises drill tests of the D-Vein trend along strike or at depth. The Company is focused on testing extensions and gaps within the data set in advance of the preparation of a mineral resource estimate. Drilling highlights (true width reported) include holes CDH-24-171 with 1,334 g/t Ag, 0.8% Pb, and 3.4% Zn over 2.17m, including 2,370 g/t Ag, 1.2% Pb, and 5.5% Zn over 0.42m, plus 117 g/t Ag, 1.1% Pb, and 0.3% Zn over 2.5m, plus 298 g/t Ag, 1.3% Pb, and 0.6% Zn over 6.48m, including 627 g/t Ag, 2.5% Pb, and 0.5% Zn over 2.62m, including 1,525 g/t Ag, 1.3% Pb, and 0.2% Zn over 0.53m, plus 369 g/t Ag, 0.6% Pb, and 1.8% Zn over 1.25m, including 976 g/t Ag, 1.5% Pb, and 4.8% Zn over 0.42m, plus 338 g/t Ag, 0.4% Pb, and 1.1% Zn over 15m, including 484 g/t Ag, 0.5% Pb, and 1.4% Zn over 9.34m, including 923 g/t Ag, 0.8% Pb, and 2.5% Zn over 1.2m, plus 487 g/t Ag, 0.5% Pb, and 1.1% Zn over 2.5m; and hole CDH-23-173 with 401 g/t Ag, 0.2% Pb, and 0.4% Zn over 1.67m, plus 142 g/t Ag, 0.1% Pb, and 0.6% Zn over 7.14m, including 377 g/t Ag, 0.3% Pb, and 1.8% Zn over 1.89m, plus 459 g/t Ag, 0.3% Pb, and 0.6% Zn over 0.76m, plus 796 g/t Ag, 0.6% Pb, and 2.2% Zn over 0.53m, plus 679 g/t Ag, 0.3% Pb, and 0.5% Zn over 0.76m, plus 162 g/t Ag, 0.4% Pb, and 1.4% Zn over 4m, plus 84 g/t Ag, 0.1% Pb, and 0.2% Zn over 7.58m, plus 1,070 g/t Ag, 4.2% Pb, and 1.7% Zn over 0.38m.
Centenario Gold Corp., reported that it plans to initiate a second phase drill program in early 2025 at its Eden property in Sinaloa, building on insights gained from the first phase of drilling completed in February 2024. This upcoming program aims to further explore the mineralized systems on the Eden property, including the upper and deeper portions of the Buenavista epithermal system and other nearby prospects like La Provedora.

ON MINING

Fortuna Mining Corp., announced that it will release its unaudited financial statements and management’s discussion and analysis for the Q3, 2024 on November 3, 2024 (San Jose Mine, Oaxaca).
Starcore International Mines Ltd., announced the resumption of operations at its San Martin mine, Queretaro, which has returned to normal capacity following safety upgrades. The company expressed gratitude to various Mexican government agencies for their collaboration in enhancing safety standards.
MAG Silver Corp., reported Q3, 2024 production results from its Juanicipio mine in Zacatecas. The company milled 322,290 tonnes of 481 g/t Ag,1.32 g/t Au, 1.6% Pb, and 2.8% Zn to produce 4.88M Oz Ag, 10-8K Oz Au, 10.66M Lb Pb, and 16.76M Lb Zn.
Santacruz Silver Mining Ltd., released Q3, 2024 production results from its Zimapan mine in Hidalgo. The company processed 217,741 tonnes of 82 g/t Ag, 2.6% Zn, 0.8% Pb, and 0.29% Cu with metallurgical recoveries of 78%, 77%, 90%, and 43% respectively, to produce 444.6K Oz Ag, 9.68M Lb Zn, 3.38M Lb Pb, and 604.8K Lb Cu (1,156,097 Oz AgEq).
Gold Royalty Corp., announced strong Q3, 2024 revenue, driven by the company´s cash flowing royalties. The company reported an approximately 160% increase in revenue and 90% increase in total revenue, land agreement proceeds, and interest in the third period of 2024 compared with the same period in 2023 (Cozamin, Zacatecas).
Gold Resource Corporation reported preliminary Q3, 20243 production results from its Don David mine in Oaxaca. The company milled 83,690 tonnes of 0.54 g/t Au, 83 g/t Ag, 0.2% Cu, 1% Pb, and 2.6% Zn to produce 944 Oz Au, 194.5K Oz Ag, 208.3K Lb Cu, 1.29M Lb Pb, and 3.9M Lb Zn. In the third period of 2024, Gold Resource sold 1,357 Oz Au, 181.4K Oz Ag, 219.5K Lb Cu, 1.05M Lb Pb, and 3.3M Lb Zn (43,526 Oz AuEq) at an average realized prices of USD $2,561/Oz Au, USD $30.61/Oz Ag, USD $8,832/tonne Cu, USD $2,065/tonne Pb, and USD $2,854/tonne Zn.
Equinox Gold Corp., announced that it will release its unaudited financial and operating results for the three and nine months ended September 30, 2024 on Wednesday, November 6, 2024 (Los Filos mine, Guerrero).
Newmont Corporation reported Q3, 2024 production results from its Peñasquito mine in Zacatecas. The company produced 213K Oz Au or 229K Oz AuEq at production costs of USD $ 985/Oz AuEq or USD $990/Oz AuEq and AISC of USD $1,224/Oz Au or USD $1,286/ Oz AuEq.
Fresnillo plc released Q3, 2024 production results from their Mexican operations. The company presented consolidated results and reported the production of 14.4M Oz Ag, 156.8K Oz Au, 39.7M Lb Pb, and 72.3M Lb Zn during the third quarter of 2024. It also provided a 2024 outlook and expects to produce between 55-62M Oz Ag and 580-630K Oz Au /101-112 M Oz AgEq). At Fresnillo mine, Zacatecas, it processed 578,323 tonnes of 155 g/t Ag, 1.04 g/t Au, 1.5% Pb, and 3.3% Zn to produce 2.6M Oz Ag, 14.4K Oz Au, 16.86M Lb Pb, and 32.18M Lb Zn. At Saucito mine, Zacatecas, the company processed 590,362 tonnes of 219 g/t Ag, 1.35 g/t Au, 1.1% Pb, and 2% Zn to produce 3.7M Oz Ag, 19.8K Oz Au, 12.85M Lb Pb, and 20.8M Lb Zn. At Pyrites Plant (includes Fe concentrates from Saucito and Fresnillo mines) it processed 39,845 tonnes of 564 g/t Ag and 2.14 g/t Au to produce 527K Oz Ag and 790 Oz Au. At La Ciénega mine, Durango the company processed 272,133 tonnes of 1.14 g/t Au, 163 g/t Ag, 0.4% Pb, and 0.4% Zn to produce 8.9K Oz Au, 1.2M Oz Ag, 1.5M Lb Pb, and 1.48M Lb Zn. At San Julian Veins, Chihuahua/Durango Border, Fresnillo processed 314,786 tonnes of 1.24 g/t Au and 226 g/t Ag to produce 11.9K Oz Au and 3M Oz Ag, At San Julian Disseminated Ore Body, Chihuahua/Durango Border, it processed 435,804 tonnes of 0.06 g/t Au, 77 g/t Ag, 0.3% Pb, and 1.1% Zn to produce 498 Oz Au, 902K Oz Ag, 2.4M Lb Pb, and 8.4M Lb Zn. At Herradura mine, Sonora, the company processed 6,257,754 tonnes of 0.7 g/t Au and 1,1 g/t Ag to produce 89K Oz Au and 119K Oz Ag. At Noche Buena mine, Sonora, the company recovered 5.4K Oz Au from the leach pads. At Juanicipio mine, Zacatecas (attributable), Fresnillo processed 186,082 tonnes of 481 g/t Ag, 1.32 g/t Au, 1.6% Pb, and 2.8% Zn to produce 2.74M Oz Ag, 6K Oz Au, 6M Lb Pb, and 9.5M Lb Zn.

ON FINANCING

Guanajuato Silver Company Ltd., announced a non-brokered private placement for gross proceeds of up to CAD $8M by the issuance of up to 33,333,333 units at a price of CAD $0.24 per unit. Later on, it was modified to CADS $8.62M by the issuance of 35,918,000 units at a price of $0.24 per unit. Net proceeds will be used for working capital and general corporate purposes (Valenciana Mine Complex, Guanajuato).
Prismo Metals Inc., reported that it entered into debt settlement agreements with certain creditors of the company. Creditors have accepted 100,000 common shares of the company at a deemed issue price per share of $0.21, and 17,500 common shares of the company at a deemed issue price per share of $0.20 in full and final settlement of aggregate accrued and outstanding indebtedness in the amount of $24,500 (Palos Verdes project, Sinaloa).
Kingsmen Resources Ltd., announced a non-brokered private placement financing of up to 4,000,00o units at a price of $0.25 per unit for gross proceeds of up to $1M (Las Coloradas project, Chihuahua).
Osisko Development Corp., announced an oversubscribed and fully allocated private placement financing for gross proceeds of USD $57.5M, which is expected to close on November 12, 2024. The offering involves the issuance of 31,944,700 units at a price of USD $1.80 per unit. Part of the net proceeds will be used to repay a portion of the company´s credit facility (San Antonio project, Sonora).

ON RESOURCES AND DEVELOPMENT

Goldgroup Mining Inc., reported that an independent metallurgical testing conducted at its Cerro Prieto Gold mine in Sonora has yielded promising results, confirming higher gold and silver recoveries from the Esperanza and Nueva Esperanza Zones. The average gold extraction rates were 82.07% for Nueva Esperanza and 78.03% for Esperanza, while silver extractions reached 90.42% and 63.12%, respectively. The tests involved cyanide agitated leach methods over a 72-hour retention period, with sodium cyanide and calcium oxide consumptions falling within medium ranges. On other tests involved locked cycle cyanide column method over a 78 days period, the average gold extractions rates were 78.88% for La Esperanza and 77.3% for Nueva Esperanza, while silver extractions reached 21.18% and 17.27% respectively at a sodium cyanide concentration of 600 ppm and crush size of P₈₀ of 3/8”, resulting in a calculated gold and silver recoveries of 72.09% and 17.27% respectively (3% discounted from column extraction) X 95% ADR plant recover for both zones. These findings indicate a positive outlook for the mine’s production potential and economic viability.
Endeavour Silver Corp., provided a Q3, 2024 construction progress update on its Terronera property in Jalisco. It has reached 77% overall construction completion with more than USD $258M of the project’s budget spent to date. Key highlights include the Upper Plant Platform nearing completion and surface mill construction at 90%. The focus is shifting to the Lower Platform and Tailing Storage Facility, with significant progress in various areas, including the installation of flotation equipment and the construction of auxiliary buildings. The project is on track to begin commissioning systems near the end of Q4 2024, with ongoing mine development and community support initiatives also noted.
Chesapeake Gold Corp., provided a metallurgical update for its Metates property in Durango. The company achieved gold recovery rates exceeding 70% using its proprietary oxidative leach technology, which will serve as a foundation for a pre-feasibility study (PFS). After 204 days of oxidation, a ~74% gold recovery was achieved. After 146 days, the oxidation process increased the silver recoveries by over 20%. Silver represents approximately 30% of the economic value of Metates. Additionally, the recent acquisition of certain intellectual property rights marks a strategic milestone, enabling Chesapeake to explore further opportunities in the global refractory ores market, valued at approximately USD $1.5 trillion. The metallurgical test work demonstrated improved recoveries for both gold and silver, indicating the potential for enhanced economic value from the project.
Sierra Madre Gold and Silver Ltd., announced a test mining throughput at its la Guitarra mine complex in Estado de Mexico. Since test mining began on June 25, 2024, the company has achieved an average daily throughput of 428 wet metric tonnes (WMT), with peaks of 504 WMT/d. Silver recoveries have averaged 78%, while gold recoveries have improved from 74% in June to 87% in October. The company plans to begin commercial production before the end of the year and is testing new reagent combinations to enhance silver recovery from oxidized materials. Since the commencement of test operations, a total of 39,272 tonnes of economically interesting mineralized material has been put through the processing circuit. A total of 690.44 dry metric tonnes of concentrate has been shipped to MRI Trading. Average provisional concentrate payment grades have been 2,903 g/t Ag and 34.74 g/t Au.
Silver Tiger Metals Inc., released results of a Preliminary Feasibility Study (PFS) for its El Tigre project in Sonora. Highlights of the PFS (all figures in US dollars) include an after-tax net present value (NPV) using a discount rate of 5% of $22M, with an after-tax IRR of 40% and payback period of 2 years; 10-year mine life recovering a total of 43M payable Oz AgEq or 510K payable Oz AuEq, consisting of 9M Oz Ag and 408K Oz Au; total project undiscounted after-tax cash flow of $318M; initial capital costs of $86.8M, which includes $9.3M of contingency costs, over an expected 18-month build, expansion capital of $20.1M in year 3 and sustaining capital costs of $6.2M over the life of mine (LOM); average LOM operating cash costs of $973/Oz AuEq, and all in sustaining costs (AISC) of $1,214/Oz AuEq or Average LOM operating cash costs of $12/Oz AgEq, and all in sustaining costs (AISC) of $14/Oz AgEq; average annual production of approximately 4.8M Oz AgEq or 56.7K Oz AuEq; and three years of production in the Proven category in the Phase 1 Starter Pit. “The PFS is focused on the conventional open pit mining economics of the Stockwork Mineralization Zone defined in the updated Mineral Resource Estimate (MRE). The updated MRE also contains an Out-of-Pit Mineral Resource that Silver Tiger plans to study in a Preliminary Economic Assessment in H1-2025.
Luca Mining Corp., commenced an underground exploration program at its Tahuehueto mine in Durango. The company plans to drill up to 5,000m of diamond core drilling in 26 holes over the next 4-6 months. “The drill plan takes advantage of recently developed areas to potentially extend the resource along the modeled veins”.

ON DEALS AND CORPORATE ISSUES

Quetzal Copper Corp., announced results of its annual general meeting of shareholders (Cristinas project, Chihuahua).
Silver Storm Mining Ltd., reported that the British Columbia Securities Commission issued a failure to file cease trade order (CTO) due to the company’s failure to file its annual financial statements, management´s discussion, and analysis and related officer certifications for the financial year ended March 31, 2024, and its unaudited interim financial statements, related management´s discussion, and analysis and officer certifications for the three months ended June 30, 2024. This delay is attributed to complexities related to the acquisition of the La Parrilla Silver Mine Complex. The company expects to complete its annual filings by approximately October 24, 2024, with interim filings to follow shortly after. As a result of the CTO, trading of the company’s shares on the TSX Venture Exchange has been suspended, and its listing has been moved from the OTCQB Market to the OTC Pink Open Market until the required documents are filed.
Starcore International Mines Ltd., announced management changes of its Board of Directors as one of its members will be stepping down from the Board due to the requirements of her professional career. A new member will be joining the Board as her replacement (San Martin mine, Queretaro).
GR Silver Mining Ltd., reported the replacement of its CEO by retirement effective immediately (Plomosas project, Sinaloa).
Heliostar Metals Ltd., received regulatory approval from the Comisión Federal de Competencia Económica (COFECE) with respect to the pending acquisition of the Mexican business unit from Florida Canyon Gold Inc., which is anticipated in early November 2024 (San Agustin and El Castillo mines in Durango).
Centenario Gold Corp., amended its Eden property option agreement located near Cosala, Sinaloa. Under the existing terms of the agreement, the company was required to make a cash payment of USD $60K on December 23, 2024, and a final payment of USD $425K on March 23, 2025, but now with the amendment, Centenario has extended the payment schedule over 2½ years while maintaining a total exploration expenditure requirement of $3M, with approximately 1.47M already spent as of June 30, 2024. future payments are shown in the amended payment schedule below:

Southern Silver Exploration Corp., reported results from its annual general meeting of shareholders (Cerro Las Minitas project, Durango).
Fuerte Metals Corporation reported that its common shares have been approved to trade on the OTC Market’s Group Inc.’s OTCQB Venture Market in the United States, under the ticker symbol FUEMF (Cristina project, Chihuahua).
Xali Gold Corp., announced that Kappes, Cassiday and Associates (KCA) is progressing well on the El Oro tailings project in Mexico, having made a recent payment of USD $1M as part of the purchase agreement. KCA expects to begin production within 12 to 18 months and is required to make minimum royalty payments of USD $50K to Xali every six months.

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, jasperoid related to a low sulphidation epithermal vein system in a project in Zacatecas, Mexico. Photo taken by Miguel A Heredia.

The Mining and Exploration News in Mexico: Highlights on the First Week of October 2024

October 6, 2024October 6, 2024 / Gambusino Prospector / Leave a comment

By Jorge Cirett

During the 40^thweek of the year (September 30^th to October 6^th,2024), companies working in Mexico posted at least 12 press releases. One company informed on exploration advances on its property, one other company updated on mining operations, one company notified on the extension of a financing round, two companies granted stock options/deferred-share-units, two companies announced share consolidation programs, two companies reported drilling results on its advanced property/mine, another reported AGM results, one informed on appointments to the board and two more on their merger. ON MEXICO ISSUES, an illegal mining operation was terminated in Sonora. Vulcan Materials warned on the intensification of its legal dispute with the Mexican government. ON EXPLORATION, in Nayarit, Angel Wings Metals provided an exploration update on La Reyna project. ON MINING, Luca Mining updated on planned activities at its Campo Morado and Tahuehueto mines, in Guerrero and Durango respectively. ON RESOURCES AND DEVELOPMENT, Vizsla Silver reported drilling results from Panuco, in Sinaloa. Gatos Silver released drilling results from two areas of the Cerro Los Gatos mine in Chihuahua. ON DEALS AND CORPORATE ISSUES, Vizsla Silver presented results of its AGM. Apollo Silver made directors appointments. Coeur Mining and SilverCrest Metals announced their merger. ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUES

An illegal gold mining operation was closed down in Sonora. The mining operation was being conducted without permits on La Cienega area in the Sonoran Desert, which is an historically active dry placer mining area. Eight persons were detained and diverse equipment sequestered.
Vulcan Materials warned that it is to intensify its legal dispute with the government of Mexico, under which the company demands the payment of US$1.5 billion.

ON EXPLORATION

Angel Wing Metals Inc. provided an exploration update on La Reyna project, in Nayarit. The exploration focus is on the El Polo-Dolorosa target area, where historic trench results include 21 m grading 5.01 gpt Au, 12.7 m grading 1.21 gpt Au and 15.52 m grading 0.92 gpt Au. “Principal prospects include the former El Polo open pit mine, and the Dolorosa, San Ramon, La Feña, and El Zorillo shallow workings. The Company intends on commencing a diamond drill program in Q4 of this year”. Exploration is focused on bulk tonnage size potential in altered and brecciated volcanic rocks with stockwork quartz veining. The first 2,500 m drill phase is to test five widely spaced prospects from near surface depths to 175 m.

ON MINING

Luca Mining Corp. updated on planned activities at its two mines in Mexico. At Campo Morado, in Guerrero, a mining contractor was hired to increase performance and exceed 2,000 tpd rates, improvements to metallurgy processes have been made and the first drilling program in over a decade is commencing. At Tahuehueto, in Durango, construction has been completed and commercial production is expected to be declared during Q4. A significant drilling campaign is to commence during the quarter. “Luca will commence repayments of its debt owed to Trafigura, from cashflow, in October 2024 under the terms of the restructured debt agreement”.

ON FINANCING

Aztec Minerals Corp. granted 1.57 M stock options to directors, management, and consultants of the company (Cervantes, Sonora).
GRSilver Mining Ltd. granted 97.5 K deferred share units (DSU) to non-executive directors for director’s fees to Q3 2024. eligible persons in accordance with the Omnibus Long-Term Incentive Plan. “Once vested, each DSU entitles the holder thereof to receive either one common share of the Company, the cash equivalent of one common share or a combination of cash and common shares, as determined by the Company, net of applicable withholdings” (Plomosas, Sinaloa).
Silver Spruce Resources Inc. proposed to consolidate its common shares on a 1:15 basis on its annual and special meeting on October 29, 2024 (Pino de Plata, Chihuahua).
Apollo Silver Corp. announced a non-brokered private placement for aggregate gross proceeds of up to C$10 M. Following the closing of the offering, the company intends to consolidated its issued and outstanding shares on a five to one basis. (Cinco de Mayo, Chihuahua).
Colibri Resource Corp. announced the extension of its non-brokered private placement to raise up to C$450 K, to close on or before November 3, 2024 (EP project, Sonora)

ON RESOURCES AND DEVELOPMENT

Vizsla Silver Corp. reported results from 11 holes targeting the Copala resource area at its Panuco project in Sinaloa. Highlighted true width intercepts comprise 2.88 m @ 0.45 gpt Au, 92 gpt Ag; 1.46 m @ 15.47 gpt Au, 1,935 gpt Ag; 0.55 m @ 6.26 gpt Au, 437 gpt Ag; 2.30 m @ 37.30 gpt Au, 2,851 gpt Ag; (including 1.05 m @ 73.10 gpt Au, 5,410 gpt Ag); 1.70 m @ 1.35 gpt Au, 238 gpt Ag; 5.80 m @ 14.85 gpt Au, 2,551, gpt Ag (including 0.46 m @ 146.50 gpt Au, 21,953 gpt Ag); 2.30 m @ 0.98 gpt Au, 79 gpt Ag; 4.15 m @ 3.29 gpt Au, 732 gpt Ag (including 1.37 m @ 7.56 gpt Au, 1,634 gpt Ag); 5.65 m @ 26.06 gpt Au, 3,007 gpt Ag (including 1.48 m @ 96.11 gpt Au, 10,869 gpt Ag); 0.65 m @ 1.99 gpt Au, 384 gpt Ag; 7.50 m @ 1.23 gpt Au, 222 gpt Ag; 4.90 m @ 1.06 gpt Au, 145 gpt Ag; 1.00 m @ 5.39 gpt Au, 874 gpt Ag; 0.90 m @ 12.05 gpt Au, 1,830 gpt Ag; 4.35 m @ 3.00 gpt Au, 781 gpt Ag (including 0.73 m @ 12.45 gpt Au, 2,990 gpt Ag). “Exploration and resource focused drilling at Copala has traced mineralization along ~1,770 metres of strike length and ~400 metres down dip”.
Gatos Silver Inc. updated on the drilling exploration programs in the 70%-owned Los Gatos district in Chihuahua. Positive results have been obtained on the Central Deeps target and the South-East Deeps zone at the Cerro Los Gatos mine, as well as key developments on the regional exploration program. Highlighted true width intercepts comprise 7.5 m @ 0.20 gpt Au, 101 gpt Ag, 0.17% Cu, 5.5% Pb, 11.1% Zn; 3.3 m @ 0.28 gpt Au, 153 gpt Ag, 0.08% Cu, 6.6% Pb, 17.5% Zn; 2.8 m @ 0.03 gpt Au, 40 gpt Ag, 0.22% Cu, 0.7% Pb, 3.0% Zn; 1.3 m @ 0.57 gpt Au, 151 gpt Ag, 0.09% Cu, 3.0% Pb, 3.8% Zn; 6.5 m @ 0.04 gpt Au, 47 gpt Ag, 0.26% Cu, 1.1% Pb, 2.4% Zn; 4.5 m @ 0.09 gpt Au, 88 gpt Ag, 0.52% Cu,1.8% Pb, 3.2% Zn; 7.8 m @ 0.17 gpt Au, 90 gpt Ag, 0.14% Cu, 4.9% Pb, 5.8% Zn; 4.4 m @ 0.20 gpt Au, 55 gpt Ag, 0.37% Cu, 3.4% Pb, 1.6% Zn, 2.8 m @ 0.07 gpt Au,122 gpt Ag, 0.56% Cu, 3.4% Pb, 9.5% Zn; 5.0 m 0.14 gpt Au, @ 126 gpt Ag, 0.35% Cu, 5.5% Pb, 15.8% Zn; 1.1 m @ 2.03 gpt Au. Drilling below the Central Zone has intercepted a new zone of mineralization, and the “latest results in the South-East Deeps zone show further extension potential to the south-east of the current mineral reserves in this area. Moreover, we continue to pursue the longer term potential across the broader Los Gatos district”.

ON DEALS AND CORPORATE ISSUES

Vizsla Silver Corp. held its annual general meeting, fixing the number of directors at seven persons, elected the directors for the ensuing year, re-appointed the auditor of the company and approved the company’s omnibus equity incentive compensation plan. (Panuco, Sinaloa).
Apollo Silver Corp. announced the appointment of Alex Tsakumis to its board of directors and of Amandip Singh as vice president, corporate development (Cinco de Mayo, Chihuahua).
Coeur Mining Inc. and SilverCrest Metals Inc. entered into a definitive agreement in which Coeur is to acquire all issued and outstanding shares of SilverCrest. All SilverCrest shareholders will receive 1.6022 Coeur common shares. The exchange ratio implies $11.34 per SilverCrest shares, representing an 18% premium and a total equity value of $1.7 billion based on SilverCrest’s shares outstanding. “Upon completion of the Transaction, existing Coeur stockholders and SilverCrest shareholders will own approximately 63% and 37% of the outstanding common stock of the combined company, respectively” (Palmarjo, Chihuahua; Las Chispas, Sonora).

ON SOCIAL RESPONSIBILITY

No Relevant News.

On the image below: Drilling under the scarp in Sonora. Picture by Jorge Cirett.

The Mining and Exploration News in Mexico: Highlights on the Second Week of June 2024

June 16, 2024June 16, 2024 / Gambusino Prospector / Leave a comment

By Jorge Cirett

During the 24th week of the year (June10th to June 16th, 2024), companies working in Mexico posted at least 19 press releases. One company is mobilizing its drilling crew on its property and one other elaborated on its 2024 production guidance for two mines. Four companies announced the opening/closing of financing rounds for C$20.8 M. One company released a PEA on its advanced property, another a multi-year exploration strategy, another one released drilling results from its advanced property and one more released drilling results from its mining areas. Two companies dropped their legal challenges with the Mexican authorities to submit their claims to international arbitration. A company reminded its shareholders to pay attention to the spin out of the royalty company. A company informed on the agreement amendment to repurchase a royalty and the modification of a payment clause on an option purchase agreement. ON MEXICO ISSUES the local stock exchange and the Mx Peso-US Dollar exchange rate took a moderate dip during the week as the current president and incumbent party members commented on the likelihood to pass constitutional reforms aimed to centralize power after the landslide victory obtained in the general elections on June 2, 2024. The main driver of the run is the intention to reform the Supreme Court with the election of ministers by a popular poll (similar to the current system in Bolivia), which is likely to be capitalized by the majority incumbent party Morena. Mining and exploration companies now have to raise to the reality that they better be well prepared for six more years of a government that does not like businesses in general and mining in particular. ON EXPLORATION, In Sinaloa, Prismo Metals is to mobilize its drilling crew to Palos Verdes. ON MINING, Luca Mining announced its 2024 production guidance for Campo Morado in Guerrero and Tahuehueto in Durango. ON FINANCING, Fortuna Silver closed the convertible senior notes previously announced for US$175 M (really, really unlikely to be invested in Mexico). Barksdale Resources, Prismo Metals, Impact Silver and Heliostar Metals raised a combined C$20.8 M. Quetzal Copper received a cease trade order in BC. ON RESOURCES AND DEVELOPMENT, Southern Silver Exploration released results from a PEA on Cerro Las Minitas, in Durango. Torex Gold presented its multi-year exploration strategy for the Morelos property in Guerrero. Vizsla Silver reported infill drilling results from Panuco, in Sinaloa. First Majestic Silver announced drilling results from San Dimas, in Sinaloa. ON DEALS AND CORPORATE ISSUES, Almadex Minerals and Almaden Minerals withdrew their legal challenges with the Mexican authorities as they took the decision to submit their claims to international arbitration. Vizsla Silver reminded its shareholders on the spinout of Vizsla Royalties. Capitan Silver amended the agreement to repurchase a royalty and also the option agreement on a mining concession at its Cruz de Plata project in Durango. SilverCrest Metals presented results from its AGM. ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUES

The local stock exchange and the Mx Peso-US Dollar exchange rate took a moderate dip during the week as the current president and incumbent party members commented on the likelihood to pass constitutional reforms aimed to centralize power after the landslide victory obtained in the general elections on June 2, 2024. The main driver of the run is the intention to reform the Supreme Court with the election of ministers by a popular poll (similar to the current system in Bolivia), which is likely to be capitalized by the majority incumbent party Morena. Mining and exploration companies now have to raise to the reality that they better be well prepared for six more years of a government that does not like businesses in general and mining in particular

ON EXPLORATION

Prismo Metals Inc. intends to mobilize its drilling crew to the Palos Verdes project in Sinaloa. Approximately 3,600 m in ten holes are to be completed in two phases after the closing of the ongoing financing. “These holes will be drilled from Vizsla Silver Corp. (TSXV: VZLA) concessions adjacent to the Palos Verdes concession and will target the Palos Verdes vein at depth.”

ON MINING

Luca Mining Corp. announced its 2024 guidance and outlook for the Campo Morado and Tahuehueto mines. At Campo Morado in Guerrero, the company aims to produce 43 K to 50 K Oz AuEq at cash cost $1,175 to $1,294 per Oz AuEq and an AISC of $1,235 to $1,420 per Oz AuEq to obtain $55 M to $65 M in revenue. At Tahuehueto, in Durango, Luca Mining expects to produce 17 K to 20 K Oz AuEq at cash cost $1,295 to $1,420 per Oz AuEq and an AISC of $1,510 to $1,700 per Oz AuEq, to obtain $35 M to $40 M in revenue. At Tahuehueto the company is installing a third filter press that will allow to increase production from 450 tpd to 800 tpd in a short timeframe. At Campo Morado production is ramping back up to 2,000 tpd (from 1,390 tpd in Q1 2024), coupled with the production of three concentrates of copper, zinc and lead, instead of the two currently being produced.

ON FINANCING

Fortuna Silver Mines Inc. closed the previously announced offering of 3.75% convertible senior notes due 2029 in an aggregate principal of US$175.5 M, which includes exercise of the full amount of the option to purchase an additional US$22.5 M aggregate principal amount of notes “The initial conversion rate for the Notes is 151.7220 common shares of Fortuna (“Shares”) per US$1,000 principal amount of Notes, equivalent to an initial conversion price of approximately US$6.59 per Share” (San José, Oaxaca).
Barksdale Resources Corp. increased the previously announced non-brokered private placement financing for gross proceeds of C$5.62 M. The proceeds are to be used in the exploration activities of Barksdale’s Arizona properties (San Javier, Sonora).
Quetzal Copper Corp. has been issued a cease trade order from the British Columbia Securities Commission on June 4, 2024 for failure to file interim financial reports, interim management´s discussion and analysis and certification of interim filings for Q1 2024 (Cristinas, 2024).
Prismo Metals Inc. announced that it has received commitments for gross proceeds of C$1.1 M (Palos Verdes, Sinaloa).
Capitan Silver Corp. granted 3.94 M options to officers, directors and consultants (Cruz de Plata, Durango).
IMPACT Silver Corp. closed the second tranche of the non-brokered private placement financing previously announced for combined gross proceeds of C$9.09 M (Plomosas, Chihuahua).
Heliostar Metals Ltd. announced a non-brokered private placement for gross proceeds of up to C$5 M (Ana Paula, Guerrero).

ON RESOURCES AND DEVELOPMENT

Southern Silver Exploration Corp. released results from its preliminary economic assessment (PEA) on its Cerro Las Minitas project in Durango. Key features include an after-tax NPV5% of US$501 M and IRR of 21.2% with a 48-month payback, Initial CapEx of $388 M, a large-scale underground operation with a 17-year mine life with LOM feed totalling 243 M Oz AgEq to produce 194 M Oz Ag at an AISC of $13.23 per Oz AgEq. Gross revenues totalling US$4.47 B with Ag and Au representing 45% of revenue and zinc 35%. The project has 13.3 M tonnes @ 102 gpt Ag, 0.07 gpt Au, 0.17% Cu, 1.3% Pb, 3.1% Zn containing 43.2 M Oz Ag, 32 K Oz Au, 49 M Lb Cu, 374 M Lb Pb, 921 M Lb Zn as indicated resources and 23.4 M tonnes @ 111 gpt Ag, 0.14 gpt Au, 0.21% Cu, 1.1% Pb, 2.1% Zn, containing 83.4 M Oz Ag, 104 K Oz Au, 111 M Lb Cu, 582 M Lb Pb, 1,106 M Lb Zn.
Torex Gold Resources Inc. presented the multi-year exploration strategy for its Morelos property in Guerrero. The exploration and drilling strategy has the objective to maintain more than 450 K Oz Au annual production and is to focus in three areas: 1) Extending the mine life of ELG Underground and Media Luna 2) Expanding resources within the Media Luna Cluster 3) Advancing targets through the growth pipeline. The $31 M exploration budget for 2024 includes $3 M for regional exploration, including the El Naranjo and Atzcala targets, and plans to explore north of the Balsas River.
Vizsla Silver Corp. released results from 12 diamond drill holes targeting the Copala structure at its Panuco project in Sinaloa. Some of the true width intercepts of the infill program comprise 5.00 m @ 22.95 gpt Au, 1,378 gpt Ag (including 2.75 m @ 39.10 gpt Au, 2,225 gpt Ag); 13.00 m @ 8.19 gpt Au, 1,017 gpt Ag (including 1.40 m @ 35.11 gpt Au, 4,124 gpt Ag); 6.00 m @ 10.31 gpt Au, 1,882 gpt Ag; 8.70 m @ 5.18 gpt Au, 1,096 gpt Ag; 12.30 m @ 1.57 gpt Au, 150 gpt Ag. “Resource drilling at Copala has now traced mineralization along ~1,770 metres of strike length and ~400 metres down dip.”
First Majestic Silver Corp. announced drilling results from its 2024 exploration program at San Dimas, in Durango. The drill program focus was to test new Au-Ag targets, add mineral resources and convert mineral resources to mineral reserves. Highlighted true length results comprise 2.15 m @ 20.41 gpt Au, 1,702 gpt Ag; 6.08 m @ 1.99 gpt Au, 440 gpt Ag; 6.72 m @ 7.36 gpt Au, 1,129 gpt Ag; 1.28 m @ 11.53 gpt Au, 1,158 gpt Ag; 7.88 m @ 10.87 gpt Au, 1,034 gpt Ag; 1.01 m @ 12.34 gpt Au, 196 gpt Ag; 1.76 m @ 39.28 gpt Au, 1,905 gpt Ag; 2.18 m @ 4.86 gpt Au, 511 gpt Ag; 1.34 m @ 9.44 gpt Au, 1,069 gpt Ag; 0.94 m @ 13.24 gpt Au, 1,501 gpt Ag; 2.05 m @ 3.42 gpt Au, 361 gpt Ag.

ON DEALS AND CORPORATE ISSUES

Almadex Minerals Ltd. has taken the decision to submit its claims to arbitration against Mexico under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, after a consultation meeting with Mexican officials on May 30, 2024 did not result in an amicable resolution of the dispute with Mexico. Almadex is pursuing this arbitration together with Almaden Minerals Ltd., and based on a preliminary estimate will be seeking damages of no less than US$200 million. Almadex would be entitled to damages relating to its 2.0% NSR royalty on the Ixtaca project in Puebla.
Almaden Minerals Ltd. has taken the decision to submit its claims to arbitration against Mexico under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, after a consultation meeting with Mexican officials on May 30, 2024 did not result in an amicable resolution of the dispute with Mexico. Almaden has withdrawn its legal challenge in the Mexican Federal Administrative Court and other legal proceedings in respect of the company’s mining concessions, as required for submitting a claim under the CPTPP. The ruling on the arbitration under the CPTPP will be adjudicated pursuant to the arbitration rules of the International Centre for Settlement of Investment Disputes (ICSID). Almaden is pursuing this arbitration together with Almadex Minerals Ltd., and based on a preliminary estimate will be seeking damages of no less than US$200 million, in the aggregate (Ixtaca, Puebla).
Vizsla Silver Corp. reminds its shareholders that if the spinout of Vizsla Royalties Corp. is approved at the special meeting being held on June 17, 2024, the company will seek a final order from the Supreme Court of British Columbia to approve the arrangement and closing will occur on or about June 24, 2024. “The owners of common shares of Vizsla Silver … are entitled to receive one-third of a common share of Vizsla Royalties Corp. …. and one-third of a common share purchase warrant of Vizsla Royalties Corp.” for each Vizsla Silver Share held on the record date (Panuco, Sinaloa).
Capitan Silver Corp. amended its agreement to repurchase a royalty on its Cruz de Plata project in Durango. The net smelter royalty (NSR) entitled Exploraciones del Altiplano an NSR of up to 2%. “The amendments have restructured the final payments to Altiplano which totaled USD $1.0 million into three smaller payments over the course of a year. Upon signing of the amendment a cash payment of USD $87,500 was made, with remaining payments to consist of 50% cash and 50% shares as follows: USD $200,000 in October 2024 and USD $300,000 in April 2025.” Amended was also the option agreement to purchase the “El Casco U” property from Fresnillo plc, modifying the November 2023 US$150 K payment to a US$156.3 K payment on May 2024, which has since been paid.
SilverCrest Metals Inc. announced results from its annual general meeting (AGM) held on June 12, 2024. Eight directors were re-elected by a handsome majority on the meeting where “A total of 88,115,662 votes were represented at the AGM amounting to 59.84% of the issued common shares…”

ON SOCIAL RESPONSIBILITY

No Relevant News.

On the image below: Saw scratched molybdenite speck image on a 40 X hand lens from a project in the Sonoran Desert. Picture by Jorge Cirett

Chesapeake Gold Announces Agreement to Acquire Intellectual Property Rights

May 23, 2024 / gambusinoprospectormexico / Leave a comment

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GOLDGROUP UPDATES CERRO PRIETO GOLD MINE OPERATIONS

April 12, 2024 / gambusinoprospectormexico / Leave a comment

2024-04-11_goldgroup-updates-cerro-prieto-gold-mine-operations Download

The Mining and Exploration News in Mexico: Highlights on the Second Week of March 2024

March 17, 2024 / Gambusino Prospector / Leave a comment

By Jorge Cirett

During the 11^thweek of the year (March 11^th to March 17^th, 2024), companies working in Mexico posted at least 26 press releases. Three companies reported on exploration at its properties while three more released results for the last quarter/full-year. Four companies announced financing rounds for a total of C$7.8 M, one is delisting from one Stock Exchange and listing in another one, another is extending its warrants expiry date and one more is granting stock options. One company informed on work at its advanced property. One company obtained a hard-sought community authorization for exploration activities, while one other is stopping activities in Mexico. A company announced an appointment to the board and one more the optioning of a property. One company is to process third-party material at its mill, one is cancelling an option and its related financing round and one more is updating on its legal action against the Mexican government. ON MEXICO ISSUES, a couple of judicial resolutions set the application of the new mining law on hold. The anti-mining stance by the federal government is bearing fruit, pushing mining investment out of the country. ON EXPLORATION, in Sonora, Colibri Resource updated on work at its EP project. In Chihuahua, Kootenay Silver is to drill at Columba. In Durango, Silver Dollar is re-evaluating the Nora project. ON FINANCING, three companies informed on the opening or closing of financing rounds: Regency Silver (C$250 K), Reyna Silver (C$3.2 M), Defiance Silver (C$2.6 M) Guanajuato Silver granted options to directors, management and consultants. Pantera Silver is to extend the expiry date of warrants. Almaden Minerals is to change its listing stock exchange. ON RESOURCES AND DEVELOPMENT, Atacama Copper started drilling at Cristina, in Chihuahua, focusing on high-grade resources. ON DEALS AND CORPORATE ISSUES, USAntimony is closing operations in Mexico. Vortex Metal obtained community exploration approbation. Sonoro Gold announced an appointment to the board. Riverside Resources and Fortuna Silver signed an option agreement on the Cecilia project, in Sonora. CMC Metals dropped the option on the Gavilanes project and the concurrent financing round on lack of exploration permit. Guanajuato Silver Company signed a new third-party processing agreement. Almaden Minerals and Almadex Minerals updated on its request for consultation under the CPTPP. ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUES

According to the newspaper La Jornada a judge upheld a partial suspension on the reforms to the mining law, specifically on the article that disposes all mining concession applications not yet titled. First Majestic Silver promoted the appeal on grounds of unconstitutionality.
The Poder Judicial Federal suspended multiple parts of the reform to the Mining Law of last May 2023, as these are likely unconstitutional. By Mid-April the Supreme Court has to discuss if the reforms are invalidated because of violations to the legislative process, although the project on the Mining Law still has to be included on the minute. Some points addressed in the reform include the reduction from 50 to 30 years of duration of the concession, auctioning of mining concessions, community consultation and retribution and water use limitations among others.
The Mexican government mining policies are bearing fruit. The Mining Law changes of last year (likely to be soon rejected by the Supreme Court), the reluctance by the environmental agency (SEMARNAT) to reauthorize mining permits, the lack of permits for open pit mining, the unwillingness to end illegal blockades and the general anti-mining stance of the current federal government are working as expected, deterring mining investment and pushing the more disadvantaged players, junior foreign companies, out of the country. Just this week USAntimony is closing operations in Mexico, CMC Metals is bailing out of a deal to option a property because of SEMARNAT’s failure to extend an exploration permit and Almaden Minerals informed on the international proceedings regarding its Ixtaca project in Puebla. Those companies are adding to the likes of Fortune Silver, Argonaut Gold, Riverside Resources and Golden Minerals, among others, that have made public during this quarter their reassessment of continuing operations in Mexico or have current arbitration cases, like Silver Bull Resources on its Sierra Mojada project in Coahuila. How much this scenery is to change depends on when/if the Mining Law changes are repealed and the open pit mining ban scraped.

ON EXPLORATION

Silver Dollar Resources Inc. commenced its re-evaluation of the Nora property in Durango during last February, with the collection of 72 surface samples on the East, West and South anomalies, as well as from the main Candy structure. Rock samples on the Candy structure attempt to replicate the results from the previous operator, and will be reported when received.
Colibri Resource Corp. updated on exploration activities at its EP Gold project in Sonora. Work includes an airborne magnetic survey covering 1,385 ha at a height of 35 m and a 50 m spacing between flight lines. Similar equipment and survey parameters with previous surveys allowed for the combination of the datasets. Geological mapping completed on selected areas with 64 rock samples collected as well as 23 rocks for thin section petrography. Interpretation of geological, geochemical and geophysical surveys highlighted the importance of north-northeast trending structures, and the recognition of easterly trending ones. Colibri has identified 14 target areas, prioritizing four of these for drilling.
Kootenay Silver Inc. announced the initiation of the Q1 diamond drill program at Columba, in Chihuahua. The program envisages 15 to 17 holes for 5,000 m designed to expand upon previous intercepts along the D-Vein target. “The current drilling program is designed to extend the D-Vein in preparation of a follow up program of likely 15,000 meters, aimed to delineate a maiden resource expected in late 2024 which is dependent on additional drilling beyond the 5000 meter program and the financing it requires.”

ON MINING

Endeavour Silver Corp. announced financial and operating results for Q4 and full-year 2023. During the year the company produced 5.7 M Oz Ag, 37,858 Oz Au, or 8.7 M Oz AgEq, for a total revenue of $205 M, $37 M in operating cash flow before working capital changes and net income of $6.1 M. Consolidated cash cost net of by-product credits was $13.49 per Oz Ag, and an AISC of $22.93 per Oz Ag, impacted by higher costs. During the year Bolañitos in Guanajuato processed 441 K tonnes to produce 537.5 K Oz Ag, while Guanaceví in Durango processed 433.4 K tonnes to produce 5.09 M Oz Ag. Construction of the Terronera mine in Jalisco continues on schedule. Cash position of $35.3 M and $42.5 M in working capital.
SilverCrest Metals Inc. released financial results for Q4 and year 2023. During the year Las Chispas mine in Sonora mined 300.9 K tonnes, processed 431.4 K tonnes at a rate of 877 tpd, with ore averaging 4.39 gpt Au, 423 gpt Ag (or 771 gpt AgEq), recovering 98.1% Au, 96.5% Ag, to produce 59,700 Oz Au, 5.65 M Oz Ag (or 10.4 M Oz AgEq) at cash cost $7.73 per Oz AgEq. In 2023 the company completed 13.2 km of horizontal and vertical underground development. During the year SilverCrest generated $116.7 M in net earnings and free cash flow was $121.1 M, holding cash and cash equivalents of $86 M by the end of the year.
Gold Resource Corp. announced full-year operational results from its Don David Gold Mine in Oaxaca. During Q4 2023 the mine milled 111.2 K tonnes @ 1.44 gpt Au, 85 gpt Ag, 0.39% Cu, 1.39% Pb, 2.95% Zn to produce 4,077 Oz Au, 282.5 K Oz Ag, 341 Cu tonnes, 1,072 Pb tonnes, 2,884 Zn tonnes in the quarter, adding up to 18,534 Oz Au, 1.04 M Oz Ag (31,085 Oz AuEq). For 2024 the guidance is to produce 13,000 to 15,000 Oz Au, 1.25 to 1.4 M Oz Ag, (29,500 to 31,500 Oz AuEq) at cash cost $1,450 to $1,650 per Oz AuEq. Negotiations during Q4 2023 reduced royalties from 5% to 3% on the La Tehuana, El Aguila, and Mina El Aire mining concessions.

ON FINANCING

Regency Silver Corp. closed further $253 K of a previously announced non-brokered placement of $800 K. The company also granted stock options to acquire 1.7 M of common shares to directors, officers, employees and consultants (Dios Padre, Sonora).
Pantera Silvera Corp. applied to extend the expiry date of 11.8 M share purchase warrants to March 11, 2025 (Nuevo Taxco, Guerrero).
Reyna Silver Corp. increased the size of its non-brokered listed issuer financing exemption (“LIFE”) announced on Feb 14, 2024, and its previously announced concurrent non-brokered private placement. The amended LIFE offering is to raise up to $3.2 M (Guigui, Chihuahua).
Almaden Minerals Ltd. informed that because of the low price of its share (due to the dispute with the Mexican government. – See below) the company will voluntarily delist from the NYSE and parallelly seek a listing on the OTCQB Marketplace (Ixtaca, Puebla).
Defiance Silver Corp. closed the final tranche of its previously announced non-brokered private placement for aggregate gross proceeds of C$2.6 M. Windermere Capital Fund SPC – Breakaway Strategic Resource SP, an insider of the company purchased C$1.2 M in shares, taking its ownership to a total of 41.5 M common shares and 3.05 M warrants. (Zacatecas, Zacatecas).
Guanajuato Silver Company Ltd. granted stock options and restricted share units to select officers, directors, employees and consultants (El Cubo, Guanajuato).
Sierra Madre Gold and Silver Ltd. upsized and closed its previously announced non-brokered private placement financing raising total gross proceeds of $1 M (La Guitarra, Estado de Mexico).

ON RESOURCES AND DEVELOPMENT

Atacama Copper Corp. started a 10,000 m diamond drilling campaign at its Cristina project in Chihuahua. “The Cristina project consists of multiple outcropping quartz veins that are frequently greater than 10 metre in width and extend for a currently known strike length of up to five kilometres. At least four parallel mineralized vein zones have been mapped and sampled to date”. Epithermal to mesothermal mineralization is known to occur over 1,100 m of vertical range, hosted by andesitic volcanic rocks of the Lower Volcanic Group and locally covered by Upper Volcanic Group rhyolitic rocks. Current open pit constrained resources are centered on the Guadalupe vein, comprising 752 K Oz AuEq in indicated resources and 777 K Oz AuEq in inferred resources. Atacama is trying to define an underground higher-grade resource.

ON DEALS AND CORPORATE ISSUES

United States Antimony Corp. announced plans to discontinue all Latin America operational activities and close its US Antimony Mexico, S.A. de C.V. (USAMSA) subsidiary, terminating the majority of its employees on March 11, 2024, immediately. “The Company intends to possibly sell or lease its USAMSA entity, operations, or assets over the next year and has initiated an active search for buyers or leasing opportunities of its operations and/or existing assets.” United States Antimony will continue to hold its existing Los Juarez mining claims in Queretaro. The reasons stated to close include high operating costs, new stringent Mexican mining laws, safety concerns, and the inability to collect back taxes from the Mexican government.
Vortex Metals Inc. announced the authorization by the Santiago Astata Agrarian Community to Vortex to carry on mineral exploration activities, including drilling, at its Zaachila project in Oaxaca. “Furthermore, the company has committed to forming an environmental monitoring committee with active community participation to oversee the activities and ensure environmental protection throughout the exploration program”.
Sonoro Gold Corp. appointed Katherine Reagan to the board of directors, in addition to her position of vice president of corporate development and corporate secretary (Cerro Caliche, Sonora).
Riverside Resources Inc. signed an option agreement with Fortuna Silver on Riverside’s Cecilia project in Sonora. The option term agreement envisages 5 years to earn 51% by spending US3.75 M, delivery of $150 K in cash payments and at least $500 K spent on work in the first year. Fortuna paid Riverside the initial $25 K on signing, and is to pay $25 K on filing of the agreement in Mexico, and further $25 K per year, with Riverside acting as operator charging a 10% management fee on top of work spending. Upon earning 51%, Fortuna may earn 80% by spending an additional $2.25 M in work over 3 years. After earning 80%, Fortuna might elect within 120 days to pay Riverside $5 M cash and grant Riverside a 2% NSR where 1% NSR may be purchased for $3 M, with Fortuna earning 100% in the project. The low sulfidation Au-Ag epithermal mineralization is associated to at least two nested dome complexes in sedimentary rocks.
CMC Metals Ltd. announced the cancellation of the $1.2 M private placement previously announced due to the failure, of the property owner of the Ag-Au Gavilanes project in Durango, to achieve an extension of the exploration permit with SEMARNAT (Mexico’s environmental Agency). “CMC has subsequently served notice of its intent to terminate the agreement with Sailfish Royalty Corp. to acquire the Gavilanes project but remains interested in securing exclusivity rights until October 2024.” The company intends to focus on its flagship Silverknife property in British Columbia.
Guanajuato Silver Company Ltd. announced the signing of a new third-party processing agreement with REM Marfil S.A. de C.V., a local Guanajuato based company. Under the agreement mineralized material from the past producing La Providencia mine is to be processed at the El Cubo and Cata processing facilities in Guanajuato. “The Agreement covers the processing of an initial 80,000 dry metric tonnes of mineralized material with a minimum head grade of 0.43 grams per tonne gold and 192 grams per tonne silver.”
Almaden Minerals Ltd. and Almadex Minerals Ltd. updated on its Request for Consultation delivered to the Mexican government in December 2023 according to the Comprehensive and Progressive Agreement of for Trans-Pacific Partnership (CPTPP). The Mexican government acknowledged receipt but never proposed dates for a consultation meeting. On March 14, 2024, Almaden delivered to Mexico written notice of its intention to submit a claim to arbitration under the CPTPP. “The damages relating to the Almaden and Almadex Claim will be for no less than US$200 million, in the aggregate. The Notice enables the Company to initiate arbitration should an amicable resolution of the dispute with the Mexican government not be reached.”

ON SOCIAL RESPONSIBILITY

No Relevant News.

On the image below: Specularite-quartz matrix breccia in a project in the Sonoran Desert. Picture by Jorge Cirett.

You’re Invited to Join Sonoro Gold Corp at PDAC 2024 Convention in Toronto

February 29, 2024 / gambusinoprospectormexico / Leave a comment

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You’re Invited to Join Sonoro Gold Corp at PDAC 2024 Convention in Toronto