letter of intent

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

/ Gambusino Prospector / Leave a comment

By Jorge Cirett                                             

During the 36th week of the year (September 2nd to September 8th, 2024), companies working in Mexico posted at least 17 press releases. One company informed on exploration advances on its property, one company closed a financing tranche and one other its intentions to make a private placement. A company granted stock options, one other informed on the purchase of debentures and one more on the inclusion of its stock in another index. Two companies released drilling results from its advanced properties, one more of the inclusion of a satellite deposit on its mining plans and one other on the test mining and processing of an historical operation. A company informed on the agreement to acquire another enterprise with a mining operation and a good land package. One company appointed a director, one other informed on the sale of its Mexican assets, and one other on the optioning of an interesting property. ON MEXICO ISSUES, the USA’s House of Representatives sent a letter to its Commercial Representative urging to seek assurance from the Mexican outgoing and incoming government to not pass rules on the proposed constitutional reforms that infringe T-MEC’s rules. ON EXPLORATION, In Durango, Silver Wolf commenced drilling at Ana Maria. ON MINING, no relevant news. ON FINANCING, Guanajuato Silver granted 330 K options. Argonaut Gold announced the total value of debentures to be purchased is US$58.2 M. Capstone announced its addition to another Stock Index. Colibri Resource closed a first tranche of private placement for $305 K. Luca Mining is seeking a “best efforts” private placement for C$8.5 M. ON RESOURCES AND DEVELOPMENT, Prime Mining reported expansion drilling results at Panuco, in Sinaloa. Alamos Gold reported surface drilling results for Cerro Pelon and Puerto del Aire, at the Mulatos district in Sonora, seeking to augment resources for underground mining. Torex Gold reported an updated mining plan to include the EPO deposit at the Morelos Complex in Guerrero, which is to allow mining at a 450 K Oz Au yearly rate up to at least 2030. Sierra Madre Gold and Silver updated on test mining and processing at its La Guitarra mine in Estado de Mexico. ON DEALS AND CORPORATE ISSUES, Chesapeake Gold engaged automated market making services. Guanajuato Silver Company appointed a director. The note of the week was the announcement of the merger of Gatos Silver and/by First Majestic Silver. Riverside Resources optioned the Union property to Questcorp. Golden Minerals informed on the state of affairs of its Mexican assets. ON SOCIAL RESPONSIBILITY, Discovery Silver released its 2023 ESG report.

ON MEXICO ISSUES

  • An influential group in the USA’s House of Representatives sent a letter to Katherine Thai, Commercial Representative of USA urging her involvement with the actual president of Mexico, the elected president Claudia Sheinbaum and the recently installed Congress, to assure the proposed reforms by the actual president do no go against obligations under the T-Mex (formerly NAFTA). “We recognize the sovereign right of each government to update its constitution and deeply value the strong partnership between the United States and Mexico. However, many of the proposed reforms appear to compromise US investors’ access to a stable, predictable and impartial regulatory framework”. Of the ten signatories, nine are members of the Ways & Means Committee, which plays a crucial role in overseeing the implementation of the USMCA in the House of Representatives.

ON EXPLORATION

  • Silver Wolf Exploration Ltd. announced the commencement of drilling on the El Soldado claim at the Ana Maria project in Durango. The 2,500 m program envisages the drilling of 15 holes, targeting classic carbonate replacement deposits.

ON MINING

  • No Relevant News.

ON FINANCING

  • Guanajuato Silver Company Ltd. granted stock options to purchase 300 K shares at $0.25 (El Cubo, Guanajuato).
  • Argonaut Gold Inc. announced that more than 90% of its outstanding 4.625% senior unsecured convertible debentures were tendered to the offer to purchase de debentures launched by the company on July 24, 2024, in connection with the acquisition of all of the issued and outstanding common shares of Argonaut by Alamos Gold Inc. The total value of the debentures to be purchased or redeemed is expected to be US$58.2 M (La Colorada, Sonora).
  • Capstone Copper Corp. announced that the CHESS Depositary Interests (CDI) of the company will be added to the Standard & Poors/ASX 300 Index by the S&P Dow Jones (Cozamin, Zacatecas).
  • Colibri Resource Corp. closed the first tranche of its previously announced non-brokered private placement for aggregate proceeds of C$305 K. Certain insiders of the company acquired an aggregate of 550 K units of the offering for gross proceeds of C$27.5 K. Colibri also sold its RC drill rig to a private company in Hermosillo for a total consideration of C$395 K consisting in cash and drill credits. “A portion of the proceeds is expected to be applied to an upcoming drilling program at the EP Gold Project where the Company intends to complete its first drilling program at the high priority San Perfecto target”.
  • Luca Mining Corp. entered into an agreement with Stifel in connection with a “best efforts” private placement for aggregate proceeds of C$8.5 M, with the LIFE Units to be issued pursuant to the listed issuer financing exemption (LIFE). “The net proceeds from the Offering are expected be used for ongoing work on the Campo Morado Improvement Program, exploration drilling at both Campo Morado and Tahuehueto, commissioning of the Tahuehueto mill and for general corporate purposes”.

ON RESOURCES AND DEVELOPMENT

  • Prime Mining Corp. reported expansion drilling results from the Z-T Trend at its Los Reyes project in Sinaloa. Highlighted true width intercepts comprise 10.5 m @ 2.63 gpt Au, 522 gpt Ag (including 8.0 m @ 2.89 gpt Au, 572 gpt Ag); 4.1 m @ 2.87 gpt Au, 130 gpt Ag (including 2.1 m @ 5.23 gpt Au, 218 gpt Ag); 4.6 m @ 2.92 gpt Au, 49 gpt Ag (including 2.7 m @ 4.84 gpt Au, 57 gpt Ag); 4.1 m @ 2.88 gpt Au, 6 gpt Ag (including 0.7 m @ 12.95 gpt Au, 20 gpt Ag); 2.3 m @ 4.08 gpt Au, 12 gpt Ag (including 0.6 m @ 13.40 gpt Au, 40 gpt Ag). These intercepts highlight the potential to discover more high-grade shoots for underground development below and away from the planned pit.
  • Alamos Gold Inc. reported results from ongoing surface exploration drilling on Puerto del Aire (PDA) and Cerro Pelon, within the Mulatos District in Sonora. Drilling at Cerro Pelon is following up on wide high-grade underground oxide and sulphide intersections below the open pit. Also, surface drilling has extended high-grade mineralization across multiple zones within the PDA area. Highlighted true width intercepts comprise 27.90 m @ 5.45 gpt Au; 6.46 m @ 12.47 gpt Au (including 1.09 m @ 58.10 gpt Au); 15.82 m @ 4.79 gpt Au; 15.40 m @ 4.46 gpt Au; 12.16 m @ 5.64 gpt Au; 9.81 m @ 5.77 gpt Au; 13.85 m @ 4.01 gpt Au at Cerro Pelon, 18.05 m @ 5.77 gpt Au at the GAP-Victor Zone, 28.40 m @ 3.03 gpt Au; 5.50 m @ 6.63 m at the PDA3 Zone and 0.90 m @ 36.20 gpt Au; 5.05 m @ 3.51 gpt Au; 4.20 m @ 4.16 gpt Au at the PDA Extension Zone. At Cerro Pelon high-grade Au-Ag mineralization is in pipe-like geometries at the intersection of hundred of meters long structures, 50 to 200 m below the pit bottom. “PDA is a higher-grade underground deposit located adjacent to the main Mulatos pit and is comprised of multiple mineralized zones including PDA, Gap, Victor, and Estrella … A development plan for PDA will be released … based on Mineral Reserves as of the end of 2023.”
  • Torex Gold Resources Inc. reported “an updated life-of-mine plan for the Morelos Complex which incorporates the EPO underground deposit following completion of an internal pre-feasibility study on the deposit”. The production profile is now established at a minimum of 450 K Oz AuEq per year through 2030 on the mineral reserve case alone. EPO’s upfront capital expenditures are estimated at $81.5 M, by leveraging the investment made in infrastructure part of the Media Luna project. The EPO project hosts probable reserves of 5 M tonnes @ 2.27 gpt Au, 29.8 gpt Ag, 1.29% Cu (or 4.83 gpt AuEq), containing 367 K Oz Au, 4.8 M Oz Ag, 143 M Lb Cu (or 781 K Oz AuEq), indicated resources (inclusive of mineral reserves) of 7 M tonnes @ 2.66 gpt Au, 30 gpt Ag, 1.27% Cu (or 5.14 gpt Au), containing 597 K Oz Au, 6.7 M Oz Ag, 195 M Lb Cu (or 1.15 M Oz AuEq) and inferred resources of 5 M tonnes @ 2.00 gpt Au, 37 gpt Ag, 1.24 % Cu (or 4.52 gpt Au), containing 318 K Oz Au, 5.9 M Oz Ag, 136 M Lb Cu (or 721 K Oz Au). “Development of EPO is anticipated to commence in mid-2025 with first ore production expected in late 2026. EPO will be accessed via a 650 m ramp off the Guajes Tunnel with ore transported back to the ore handling system at Media Luna via a 1,000 m truck haulage tunnel”. For an interesting review on the geology of the EPO deposit, please take a look to the press release.
  • Sierra Madre Gold and Silver Ltd.  updated on the progress of test mining and processing at the Guitarra mine complex in Estado de Mexico. A total of 20.4 K tonnes have been processed on the flotation plant since late June at a rate of 300 tpd, and 335 tonnes of dry concentrate have been shipped. Test mining began with development from the La Guitarra mine, transitioning to in situ material. Production of back fill material from stopes mined in the 1990’2 and 2000’s was increased as planned. Once emptied, these stopes will receive the tailings paste fill.     

ON DEALS AND CORPORATE ISSUES

  • Chesapeake Gold Corp. engaged the services of ICP Securities Inc. to provide automated market making services (Metates, Durango).
  • Guanajuato Silver Company Ltd. welcomed Juan Martin Peña to the role of VP operations in Mexico. The company also announced the retirement of the father and son team of Gerardo and Hernan Dorado to pursue new business interests (El Cubo, Guanajuato).
  • Golden Minerals Co. “the Company sold its wholly-owned Mexican subsidiary, Minera Labri S.A. de C.V. (“Minera Labri”), to a private Mexican company for approximately US$445,500. Minera Labri previously owned the Velardeña Properties’ Plant 1, which together with the Velardeña mines, was sold to another privately-held Mexican group earlier in 2024. Upon consummation of that transaction, Minera Labri held no assets but held net operating losses and inflation-adjusted capital contributions. Under Mexican law, the balance of Minera Labri’s capital contribution accounts (“CUCAs”) may be bought and sold. All funds related to the sale of the CUCAs have now been received and are expected to be deployed to reduce existing liabilities of the Company and its subsidiaries.
  • First Majestic Silver Corp. and Gatos Silver Corp. entered into a definitive merger agreement pursuant to which First Majestic will acquire all of the issued and outstanding common shares of Gatos Silver. “The proposed Transaction implies a total equity value for Gatos of approximately US$970 million. Following completion of the Transaction, existing Gatos shareholders will own approximately 38% of First Majestic shares on a fully-diluted basis.” Consolidates the Santa Elena, San Dimas and Cerro Los Gatos districts under one banner, with a combined annual production of 30-32 M Oz AgEq including 15-16 M Oz Ag at an AISC of US$18.00-US$20.00 per Oz AgEq. The deal adds 103 K hectares of really prospective ground to the 245 K hectares First Majestic already holds in Mexico.
  • Riverside Resources Inc. and Questcorp Mining Inc. entered into a letter of intent (LOI) granting an option to Questcorp for the acquisition of 100% interest in the La Union project in Sonora. Riverside will receive C$100 K and 19.9% interest in the ownership of Questcorp upon investing C$5.5 M in the project. The envisaged deal includes payment of C$100 K in four years, 19.9% in shares and C$5.5 M on exploration expenditures. Riverside will retain a 2.5% NSR royalty on commercial production of the property. Union is a carbonate-hosted gold district with high grade gold-zinc in a 22 square km land package.

ON SOCIAL RESPONSIBILITY

  • No Relevant News.

On the image below: Chloritized porphyritic diorite with variable grain size and oriented crystals, HQ core. Picture by Jorge Cirett.

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

/ gambusinoprospectormexico / Leave a comment

Silica sinter

By Miguel A Heredia

During the 6th week of the year (February 5th to February 11th, 2024), at least 25 press releases were announced by companies working in Mexico, and 3 news published by the media with eight reporting resources and developments of their projects, six announcing financing issues, five disclosing deals and corporate issues, four commenting on Mexican issues, two communicating production results, two informing on exploration results, and one discussing social issues.  ON MEXICO ISSUES, Analysts announced that Q4, 2023 reports will be disparate on the Stock Market.  President Andrés Manuel López Obrador (AMLO) has presented 20 proposals for constitutional reforms in Mexico. AMLO presented initiative to prohibit open pit mining. Orla Mining, First Majestic, Prismo Metals, and Prime Mining reported the best drilling intercepts in Mexico on the second week of February, 2024. ON EXPLORATION, In Sinaloa, Prismo provided an exploration update on its Palos Verdes project.  In Durango, Silver Dollar acquired from Canasil a 100% interest in the Nora project, and provided a project update. ON MINING, Argonaut announced that it will report Q4 and year-end 2023 production and financial results of their Mexican operations on March 6, 2024. GoGold released Q1, 2024 production and financial results from its Parral Tailings project, Chihuahua. ON FINANCING, Capstone and Orion closed its previously announced CADS $431M bought deal offering (Cozamine mine, Zacatecas). Defiance announced a non-brokered private placement for gross proceeds of up to CAD $3M (San Acacio project, Zacatecas). Kootenay increased the size of its previously announced non-brokered private placement to $3.5M (Columba project, Chihuahua). Sonoro announced a non-brokered private placement for gross proceeds of up to CAD $1M (Cerro Caliche project, Sonora).  Regency Silver extended the closing its private placement (Dios Padre project, Sonora).  Zacatecas Silver upsized and closed its previously announced private placement from $1.8M to $2.5M (Zacatecas Silver project, Zacatecas). ON RESOURCES AND DEVELOPMENT, Luca Miningprovided an update progress at its Tahuehueto property in Durango. Avino presented the results of the Pre Feasibility (PFS) for its Oxide Tailings project at its Avino mine operation in Durango. Sierra Madre provided an update on La Guitarra mine in the State of Mexico. Heliostar announced that it is evaluating test mining scenarios for its Ana Paula project, Guerrero in 2024. Orla concluded its 2023 Camino Rojo Sulphides Infill program in Zacatecas with strong results.  Prime Mining released results from the 2023 drilling program at the Z-T Area within its Los Reyes project, Sinaloa. First Majestic reported positive exploration results from their San Dimas property in Durango, and Santa Elena property in Sonora. Torex provided a Q4, 2023 update on its Media Luna project in Guerrero.   ON DEALS AND CORPORATE ISSUES, Capstone announced that it has commenced trading on the Australian Securities Exchange (Cozamin mine, Zacatecas). Colibri appointed Douglas Coleman to its Advisory Board (Evelyn project, Sonora).  Fabled Silver terminated its letter of intent with Kootenay with respect to the proposed acquisition the Mecatona Property, Chihuahua. Luca Mining appointed a new member to its Board of Directors (Tahuehueto project, Durango). Defiance clarified technical disclosures pertaining to its technical reports related to their Tepal project, Michoacan and San Acacio project, Zacatecas. ON SOCIAL RESPONSIBILITY, Fortuna Silver announced its objectives, metrics, and targets to reduce Scope 1 and Scope 2 greenhouse gas (GHG) emissions (San Jose mine, Oaxaca).

ON MEXICO ISSUE

  • Analysts predict that the fourth quarter of 2023 will be a mixed bag for Mexican mining companies due to pressures on costs and falling prices of industrial metals. While some companies may benefit from increasing prices of precious metals like gold and silver, others will also face higher costs. Grupo Mexico has already reported weak financial results due to decreased sales of copper, while the other companies are expected to face similar challenges in 2024 due to China’s economic slowdown. Only Minera Frisco has generated a positive return so far this year among the four mining companies. Autlán is expected to make some sequential improvements due to cost-cutting efforts, but the industry as a whole is predicted to face challenges in the coming year. All of last year, only the companies that are part of the S&P/BMV stock index IPC Grupo México (+37.66%) and Peñoles (+3.58%) had gains on the Stock Market. While the share of Fresnillo, a subsidiary of Peñoles listed on the London Stock Exchange, lost 34.08%, that of Autlán lost 26.43% and that of Frisco lost 9.01%.
  • President Andrés Manuel López Obrador (AMLO) has presented 20 proposals for constitutional reforms in Mexico. One of the proposals is to return the Comisión Federal de Electricidad (CFE) to its status as a public, strategic, and nationally important company.  AMLO also proposes to prohibit the extraction of hydrocarbons through hydraulic fracturing (fracking) and to not grant concessions to private companies for open-pit mining activities. However, in the economic budget planned for 2024, the government has contemplated two projects with fracking for MXP $4.63M, according to data from the organization Mexican Alliance against Fracking (AMCF). Currently, of the almost 250 mines that operate in the country, 97 are open pit metal mines and 152 more are underground mines; However, until March 2022, 15,551 mining concessions were registered in the country with validity after 2050. It should be noted that since the arrival of AMLO to the presidency, not a single mining concession has been granted, which has led the sector to have a drop in investment that decreased its participation in the national GDP, from 2.50 in 2021 to 2.46 percent in 2022, while in industrial GDP from 8.78% to 8.63%. The proposed reforms also aim to eliminate “costly and elitist” dependencies and organizations that were supposedly autonomous but disconnected from the interests of the people. Some of the autonomous bodies that could be affected by these proposals include the Comisión Reguladora de Energía (CRE), Comisión Nacional de Hidrocarburos (CNH), and Comisión Federal de Competencia Económica (COFECE). AMLO will submit these initiatives to the Chamber of Deputies for discussion in the current or next legislative session.
  • President Andrés Manuel López (AMLO) presented initiative to prohibit open pit mining. On February 5, on the anniversary of the Political Constitution of the United Mexican States, AMLO presented an Initiative with a Draft Decree to carry out various reforms, one of these being the prohibition of open pit mining. According to the initiative, addressed to Dip. Marcela Guerra Castillo, President of the Chamber of Deputies, in order to protect the environment and health, we seek to modify art. 27 constitutional to “prohibit both the granting of concessions and the activities of exploration, exploitation, benefit, use or exploitation of minerals, metals or metalloids in the open pit, with the addition that the people who carry out these activities will be sanctioned.” The AMLO project indicates that there are currently around 264 open pit mines in Mexico, and much emphasis is placed on the old vision of predatory mining, leaving aside that for a mine to operate in our country it must have more than a thousand rules and regulations, in addition to having comprehensive closure plans.
  • Orla Mining Ltd., First Majestic Silver Corp., Prismo Metals Inc., and Prime Mining Corp., reported the best drilling intercepts in Mexico on the second week of February, 2024. Details are shown in the table below:

ON EXPLORATION

  • Prismo Metals Inc., provided an exploration update on its Palos Verdes project in Sinaloa.  Following the completion of its third drill campaign with 2,923 meters drilled in 15 holes, and in preparation of the upcoming expanded drill program to be drilled from Vizsla Silver Corp, Prismo completed an alteration and geochemical study that confirmed a downward offset of the mineralized ore shoot defined by drilling to date and that a second blind mineralized shoot may exist to the northeastern portion of the Palos Verdes vein, based on a geochemical sampling which revealed high-grade silver, gold, zinc, and lead values in the vein system.  The best sample from this program assayed 930 g/t silver and 10.55 g/t gold with 15.4% zinc and 4.5% lead (2,605 g/t Ag/Eq) over 0.5m. The company plans to conduct deep drilling from Vizsla Silver’s ground to explore these concepts further.
  • Silver Dollar Resources Inc., acquired from Canasil a 100% interest in the Nora project in Durango, and provided a project update. In connection with the acquisition of the Nora property, Silver Dollar encountered certain unresolved discrepancies in verifying the 2020 and 2021 drill results Canasil reported on the Nora property. For gold: of the 157 samples duplicated, Canasil reported 42 samples >1 g/t Au (1.23 – 43.7 g/t) including 18 samples >5 g/t (5.3 – 43.7 g/t), whereas Silver Dollar’s re-assaying yielded only three samples >1 g/t Au (1.04, 1.75, and 2.30 g/t). For silver: of the 157 samples duplicated, Canasil reported 44 samples >200 g/t Ag (133 -1,924 g/t) including 19 samples >500 g/t Ag (504 – 1,925 g/t), whereas Silver Dollar’s re-assaying yielded only three samples >100 g/t Ag (129, 158, and 448 g/t). “The QPs from both companies discussed the situation and recommended a further analytical program be carried out to provide some insight into what may have caused the assay discrepancies. However, Canasil did not have the financial resources to contribute to the recommended program and alternatively offered to waive certain of Silver Dollar’s consideration obligations under the Nora Option Agreement and transfer 100% ownership of the Nora property to Silver Dollar for the consideration that has been provided to date (as detailed below), subject to a 2% net smelter returns royalty with Silver Dollar having the right to buy back 1% of the Royalty for $1M. As of the date hereof, Silver Dollar has incurred a total of approximately $134,779 in exploration expenditures on the Nora property, as full consideration for the acquisition thereof. Silver Dollar is not required to provide any further consideration to Canasil to complete the acquisition and the transfer of the Nora concessions to Silver Dollar has been initiated”.

ON MINING

  • Argonaut Gold Inc., announced that it will report Q4 and year-end 2023 production and financial results of their Mexican operations on March 6, 2024.
  • GoGold Resources Inc., released Q1, 2024 production and financial results from its Parral Tailings project, Chihuahua. The company produced 109K Oz Ag, 1,848 Oz Au, and 212.8K Lb Cu (300,260 Oz AgEq). It also reported a revenue of USD $6.8M on the sale of 305,087 Oz AgEq, at a realized price of USD $22.28 per Oz Ag, and an adjusted cash cost and all in sustaining cost of USD $16.83 and USD $24.64 per Oz AgEq respectively ; a net income of USD $192K; and a cash of USD $88.8M.

ON FINANCING

  • Capstone Copper Corp., and Orion Fund JV Limited, Orion Mine Finance Fund II LP and Orion Mine Finance (Master) Fund I-A LP (collectively, Orion) closed its previously announced bought deal offering of common shares of Capstone by a syndicate of underwriters, which consisted of a total of 68,448,000 common shares at a price of CAD $6.30 per common share, which included the exercise in full of the Underwriters’ over-allotment option of 8,928,000 common shares from the company, for aggregate gross proceeds under the offering of CAD $431,222,400 (Cozamine mine, Zacatecas).
  • Defiance Silver Corp., announced a non-brokered private placement for gross proceeds of up to CAD $3M. The offering is priced at $0.10/unit. Each unit shall consist of one common share of the company and one half of one common share purchase warrant. Net proceeds will be used for exploration of the company’s projects and for general working capital purposes (San Acacio project, Zacatecas).
  • Kootenay Silver Inc., increased the size of its previously announced non-brokered private placement to $3.5M, at a price of $0.75 per unit. The net proceeds from the offering will be used for exploration activities, property commitments on the company’s projects, working capital and general corporate purposes (Columba project, Chihuahua).
  • Sonoro Gold Corp., announced a non-brokered private placement offering consisting of up to 22,222,222 units at a price of CAD $0.45 per unit for gross proceeds of up to CAD $1M. Net proceeds will be used to fund the ongoing development of the company’s Cerro Caliche gold project in Sonora, Mexico as well as working capital.
  • Regency Silver Corp., extended the closing its previously announced private placement dated January 17, 2024 (Dios Padre project, Sonora).
  • Zacatecas Silver Corp., upsized and closed its previously announced private placement from $1.8M to $2.5M. The Company will now proceed to immediately close the financing, by way of receiving subscription agreements and funds and intends to close within the next week. The Company intends to use the net proceeds to satisfy ongoing costs associated with its properties as well as general working capital purposes (Zacatecas Silver project, Zacatecas). 

ON RESOURCES AND DEVELOPMENT

  • Luca Mining Corp., provided an update progress at its Tahuehueto property in Durango. The project to increase throughput at the Tahuehueto mill to 1,000 tonnes per day is in the final commissioning stage. The testing of the second ball mill is well advanced and will provide a total installed grinding capacity of 1,250 tonnes per day. Once the second mill is commissioned, production will ramp up and progressively increase to 35,000-40,000 oz AuEq per year.
  • Avino Silver & Gold Mines Ltd., presented the results of the Pre Feasibility (PFS) for its Oxide Tailings project at its Avino mine operation in Durango. Highlights include a NVP of USD $98M (pre-tax) and USD $61M (after-tax) at a 5% discount rate; an IRR of 35% (pre-tax) and 26% (after-tax); a payback period of 2.9 years (pre-tax) and  3.5 years (after-tax); an initial capital cost of USD $49.1M, including a contingency provision in the amount of USD $5.3M; the ongoing sustaining capital cost is USD $5.1M; On-site Operating Costs (OOC) and All-In Sustaining Cost (AISC) of USD $9.71 and USD $10.23 per Oz AgEq respectively; proven and probable mineral reserves of 6.70M tonnes at a silver and gold grade of 55 g/t and 0.47 g/t respectively; metal recoveries: 77.2% Ag and 74.9% Au; Doré production: Total 9,073,000 Oz Ag and 76,000 Oz Au, life-of-project (averaging 1,008,000 Oz Ag and 8,445 Oz Au per year); and the project will generate USD $52.4M in tax contributions to the local economy and government.
  • Sierra Madre Gold and Silver Ltd., provided an update on La Guitarra mine in the State of Mexico. The company has retained TechSer Mining Consultants Ltd., to complete the Mine Restart Study (MRS), which include an estimation of underground mine material for the Guitarra, Coloso and Nazareno mines and the Los Angeles bulk tonnage deposit. The   MRS is expected to be completed in Q2 of this year. On the other hand, work has been ongoing to determine necessary steps for the potential re-start of production. In accordance with recommendations made by officials with the Secretaria de la Defensa Nacional, SEDENA, improvements to the underground powder magazines have been completed. Finally, all circuits in the processing plant are undergoing maintenance and rehabilitation work which would be required for the resumption of operations. In the grinding circuit, the three ball mills are being relined, all parts of the central drive shaft mechanisms overhauled, and the motors cleaned and tested. A fourth ball mill with limited capacity will not be rebuilt at this time.
  • Heliostar Metals Ltd., announced that it is evaluating test mining scenarios for its Ana Paula project, Guerrero in 2024. The company is exploring the potential to complete the existing underground decline at the Ana Paula deposit in Guerrero, to enable test mining of a bulk gold sample. This would help de-risk the underground plan for Ana Paula while creating a potential pathway to production from test mining in 12 months. The company has initiated a Preliminary Economic Assessment (PEA) for completion in H2, 2024, and will continue resource growth drilling. Heliostar is assessing non-equity funding options for this program and has held discussions with potential offtake partners. Multiple scenarios indicate the potential to recover more than 20K Oz Au from a bulk sample from stocks averaging 7-10 g/t Au.
  • Orla Mining Ltd., concluded its 2023 Camino Rojo Sulphides Infill program in Zacatecas with strong results. Drilling highlights of the remaining unreported 14 holes completed as part of the 52 drill holes, 35,070 m infill program are shown in the table below:

“A preliminary underground resource estimate on the Camino Rojo Sulphides is eagerly anticipated to be completed in the second half of 2024. Metallurgy evaluation on the recent phase of Camino Rojo sulphide infill drilling is expected to continue throughout 2024”.

  • Prime Mining Corp., released results from the 2023 drilling program at the Z-T Area within its Los Reyes project, Sinaloa. Highlights of the drilling are shown in the table below:

“Ongoing drilling at Z-T aims to extend the high-grade shoots that remain open at depth, as well as following up on the newly discovered mineralization along strike”.

  • First Majestic Silver Corp., reported positive exploration results from their San Dimas property in Durango, and Santa Elena property in Sonora. At San Dimas, Durango, exploration drilling intersected significant gold and silver mineralization in multiple veins at Sinaloa North-Elia, Santa Teresa, Rosario and Perez Areas. Drilling highlights (true widths reported) include holes ST23-014 with 7.03 g/t Au and 903 g/t Ag (1,466 g/t AgEq) over 0.78m, plus 3.95 g/t Au and 270 g/t Ag (586 g/t AgEq) over 1.86m, plus 2.07 g/t Au and 130 g/t Ag (296 g/t AgEq) over 2.90m, plus 40.40 g/t Au and 2,092 g/t Ag (5,324 g/t AgEq) over 0.91m; hole SIN23-073 with 13.50 g/t Au and 1,007 g/t Ag (2,087 g/t AgEq) over 0.7m, plus 11.83 g/t Au and 758 g/t Ag (1,681 g/t AgEq) over 2.97m: hole PE23-225 with 1.6 g/t Au and 243 g/t Ag (371 g/t AgEq) over 0.77m, plus 14.18 g/t Au and 2,439 g/t Ag (3,574 g/t AgEq) over 1.03m, plus 3.78 g/t Au and 4.21 g/t Ag (723 g/t AgEq) over 7.78m, plus 9.16 g/t Au and 242 g/t Ag (974 g/t AgEq) over 0.84m, plus 1.33 g/t Au and 293 g/t Ag (293 g/t AgEq) over 0.96m; and hole PE23-242 with 7.36 g/t Au and 1,238 g/t Ag (1,826 g/t AgEq) over 2.41m. At Santa Elena, Sonora, the drilling program designed to convert Mineral Resources to Mineral Reserves at the Ermitaño mine, cut multiple high-grade intersections of gold and silver mineralization. Drilling highlights (true widths reported) include holes EWUG-23-012 with 7.02 g/t Au and 189 g/t Ag (750 g/t AgEq) over 10.05m, plus 20.95 g/t Au and 311 g/t Ag (1,987 g/t AgEq) over 4.88m, plus 7.99 g/t Au and 187 g/t Ag (826 g/t AgEq) over 2.38m; hole EWUG-23-007 with 4.51 g/t Au and 155 g/t Ag (516 g/t AgEq) over 8.18m, plus 4.33 g/t Au and 88 g/t Ag (434 g/t AgEq) over 3.93m, plus 18.50 g/t Au and 304 g/t Ag (1,784 g/t AgEq) over 1.71m, plus 7.44 g/t Au and 107 g/t Ag (702 g/t AgEq) over 1.32m; and hole EWUG-23-15 with 9.38 g/t Au and 230 g/t Ag (980 g/t AgEq) over 5.23m, plus 3.43 g/t Au and 192 g/t Ag (466 g/t AgEq) over 1.63m.
  • Torex Gold Resources Inc., provided a Q4, 2023 update on its Media Luna project in Guerrero.  In Q4 2023, Torex Gold’s Media Luna Project made significant progress towards completion. During Q4 2023, USD $124M was invested in the project, the highest quarterly spend to date. Total spend in 2023 was USD $366.3M, in line with revised annual project guidance of USD $360 to USD $390M. USD $350 to USD $400M has been guided for project capital expenditures in 2024, with quarterly expenditures through Q3 2024 expected to be similar to the level experienced in Q4 2023, before declining as the project nears completion. The project was 60% complete, with detailed engineering at 84% and procurement at 63%. Underground development and construction advanced, with the Guajes Tunnel breakthrough achieved ahead of schedule. Operational readiness activities continued, and the project remained on track for first concentrate production in late 2024 and commercial production in early 2025. Funding has exceeded remaining capital expenditures, and the project execution plan remains unchanged, with only minor adjustments to interim activities.

ON DEALS AND CORPORATE ISSUES

  • Capstone Copper Corp., announced that it has commenced trading on the Australian Securities Exchange (ASX) (Cozamin mine, Zacatecas). Capstone was admitted to the official list of ASX on January 31, 2024, and will trade under the ticker symbol “CSC” (ASX: CSC).
  • Colibri Resource Corporation appointed Douglas Coleman to its Advisory Board (Evelyn project, Sonora).
  • Fabled Silver Gold Corp., terminated its letter of intent with Kootenay Silver Inc., with respect to the proposed acquisition the Mecatona Property, Chihuahua.
  • Luca Mining Corp., appointed a new member to its Board of Directors (Tahuehueto project, Durango).
  • Defiance Silver Corp., clarified technical disclosures pertaining to its technical reports entitled “NI 43-101 Technical Report Preliminary Economic Assessment on the Tepal Project, Michoacan” dated February 24, 2017 with an effective date of January 17, 2017, and its technical report entitled “Technical Report and Resource Estimate, San Acacio Silver Deposit, Zacatecas, Mexico” dated September 26, 2014, with an effective date of April 1, 2014. The company understands it will need to amend the technical reports accordingly.

ON SOCIAL RESPONSIBILITY

  • Fortuna Silver Mines Inc., announced its objectives, metrics, and targets to reduce Scope 1 and Scope 2 greenhouse gas (GHG) emissions by 15% in 2023 compared to the forecasted emissions in 2030 without intervention measures. The company is committed to supporting the global ambition of net-zero GHG emissions by 2050. To achieve the 2030 GHG emissions reduction target, Fortuna plans to implement projects such as providing renewable energy to its operations, providing low-carbon electricity, and constructing and modernizing mine paste fill plants. Fortuna is committed to monitoring the GHG emissions of each of its mines on a monthly basis, reviewing progress against GHG emissions reduction target and its pathway, and assessing potential climate-related risks and opportunities.

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, silica sinter in a low-sulphidation epithermal vein system in a project in Durango. Photo by Miguel A Heredia

The Mining and Exploration News in Mexico: Highlights on the First Week of October, 2023

/ gambusinoprospectormexico / Leave a comment

Diatreme breccia

By Miguel A Heredia

During the 40th week of the year (October 02nd to October 08th, 2023), at least 20 press releases were announced by companies working in Mexico, and 6 news published by the media, with nine commenting on Mexican issues, five disclosing deals and corporate issues, four reporting resources and developments of their properties, four informing on exploration results, two announcing financing issues, and two reporting production results. ON MEXICO ISSUES, Pan American suspended temporarily operations at its Colorada Mine in Zacatecas due to security concern. Grupo México declared that the Sonora River was successfully remedied, while the Ministry of the Environment and Natural Resources (SEMARNAT) presented a document stating that the presence of contaminating elements persists in the Sonora River basin after the Grupo Mexico spill in August 2014. President Andrés Manuel López Obrador said on Wednesday, October 4, 2023, that in about 15 days he hopes to have a proposal for action on the notorious case of a chemical spill from a mine owned by the giant Grupo México into a river in the north of the country in 2014. Mine Workers Union of Peñasquito Mine in Zacatecas, the Mexico´s largest gold mine, accepted operator Newmont Corp´s proposal to end a 4 month stop on Thursday night, October 5, 2023. Gold and silver mining companies listed in the United States and Canada stock markets suffered the decline in precious metals in the international market, due to the strength of the dollar, among other reasons. Chesapeake and Defiance Silver reported the best drilling intercepts in Mexico on the first week of October, 2023. ON EXPLORATION, In Coahuila, Monumental reported final results of its maiden drilling program at its Jemi heavy rare earth element project. In Sinaloa, Chesapeake reported a new gold discovery at its Lucy project. In Zacatecas, Radius provided an update of its drilling program at its Tropico project. In Oaxaca, Vortex excavated manually six trenches, totalling 188m and collected 117 samples at its Riqueza Minera project.  ON MINING, Fortuna reported Q3, 2023 production results from its San Jose Mine, Oaxaca. Guanajuato Silver provided an operations update of their four silver producing mines (El Cubo, Valenciana, and San Ignacio Mines in Guanajuato, and Topia Mine in Durango). ON FINANCING, Excellon completed the extension of the maturity date of its 5.75% secured convertible debentures from July 30, 2023 to July 31, 2024 (La Negra Mine, Queretaro).  Bear Creek closed its previously announced bought deal financing for gross proceeds of CAD $9.5M (Mercedes Mine, Sonora). ON RESOURCES AND DEVELOPMENT, Defiance announced that new sampling of historical drill holes has identified high grade mineralization in wide widths in previously unrecognized zones at the San Acacio project area in Zacatecas. Heliostar reported 80.4% average gold recovery from seven composites representative of the High Grade Panel at its Ana Paula project in Guerrero. Minera Alamos reported maiden Mineral Resource Estimate for its Santana project, Sonora. Tocvan identified several target areas through its due diligence field work completes at its Pilar project in Sonora.    ON DEALS AND CORPORATE ISSUES, Impact Silver announced that its shares are now trading in the USA on the OTCQB market (Zacualpan project, State of Mexico). Sierra Madre reported that its common shares are now eligible for electronic clearing and settlement through the Depository Trust Company (DTC) in the United States (La Guitarra Mine, State of Mexico). Goldgroup announced the appointment of its new CEO (Cerro Prieto Mine, Sonora). Orex signed a non-binding letter of intent to acquire 100% of the Valenciana property in Zacatecas. Radius completed the issuance of 500K common shares to Bruce Smith (Tropico project, Zacatecas).  ON SOCIAL RESPONSIBILITY, No relevant news.

ON MEXICO ISSUE

  • Pan American Silver Corp., suspended temporarily operations at its Colorada Mine in Zacatecas due to security concern. The company experienced an armed robbery of two trailers of concentrate. Fortunately, there were no physical injuries to the personnel. Pan American decided to suspend operations, project work, and exploration at La Colorada to protect the safety and security of the personnel.
  • Grupo México S.A.B. de C.V., declared that the Sonora River was successfully remedied, while the Ministry of the Environment and Natural Resources (SEMARNAT) presented a document stating that the presence of contaminating elements persists in the Sonora River basin after the Grupo Mexico spill in August 2014. In a statement, Grupo México pointed out that “The supposed findings of the sampling presented last week lack any causal link with the event that occurred in 2014. They fail to point out other current sources of contamination such as illegal mining, the discharge of untreated blackberries and the prolonged accumulation of residues of agricultural fertilizers and insecticides. The results released in recent days contradict those that CONAGUA and COFEPRIS have made public over time, which are supported by laboratories accredited by the Mexican Accreditation Entity (EMA) and endorsed by various institutions.” Grupo México argues that for five years after the accident, water monitoring was carried out in 35 sampling stations and 33 wells, in addition to bio-monitoring that included analyzes of exposure to metals, plant toxicity, genetics in invertebrates and flora. The document presented by the mining company states that “scientific evidence supports that the remediation of the Sonora River is recognized as successful and fully in accordance with the law,” and that the Sonora River region has been affected by continuous disinformation campaigns, arising with Political purposes.
  • President Andrés Manuel López Obrador said on Wednesday, October 4, 2023, that in about 15 days he hopes to have a proposal for action on the notorious case of a chemical spill from a mine owned by the giant Grupo México into a river in the north of the country in 2014. Last week, the environmental authority presented an opinion in which it concluded that the firm’s remediation efforts had not been sufficient and that the Sonora River continued to show the presence of contaminants nine years after the incident. On Wednesday, however, tycoon Germán Larrea’s company said the remediation was “successful.” At the time, the company was fined and had to create a trust to repair the damages. The president added that it seemed that the resources had not only been insufficient but also that their use had not been transparent.
  • Mine Workers Union of Peñasquito Mine in Zacatecas, the Mexico´s largest gold mine, accepted operator Newmont Corp´s proposal to end a 4 month stop on Thursday night, October 5, 2023. Mine Workers Union stated in a statement that as part of the agreement, workers at the Peñasquito mine will receive 8% more pay for each shift, and the increase will be retroactive to August 1, 2023. Each of the around 2,000 unionized workers will also receive an equal share of a total of MXN $152M (USD $8.3 M). The dispute over profit sharing related to 2022 will be decided by Mexico’s tax agency, while workers will receive 10% of profits for 2023 as long as the company makes a net profit in its income, according to the statement.
  • Gold and silver mining companies listed in the United States and Canada stock markets suffered the decline in precious metals in the international market, due to the strength of the dollar, among other reasons. The shares of the Mexican mining company Industrias Peñoles fell almost 5% this Monday, losing MXP $3,975M in capitalization on the Mexican Stock Exchange (BMV). In fact, the session hit a one-year low. Peñoles shares fell 4.87%, to MXP $195.45 each, making it the second station that lost the most in the session on the BMV. Its Fresnillo subsidiary listed on the London Stock Exchange lost 2.94%, to 5.35 pounds per share. Earlier in the day, Peñoles’ stock on the BMV reached a minimum of MXP $190.40, its lowest level since September 30, 2022. The American companies Newmont and Royal Gold fell 3.82 and 3.25%, in that order, on Wall Street, while the Canadian companies Wheaton Precious Metals and Pan American Silver fell 3.92 and 5.25%, respectively, on the Toronto Stock Exchange. In Mexico, the other three mining companies listed on the Stock Exchange (Grupo México, Compañía Minera Autlán and Frisco) did not present losses in their shares, because their income depends to a lesser extent on precious metals.
  • Chesapeake Gold Corp., and Defiance Silver Corp., reported the best drilling intercepts in Mexico on the first week of October, 2023. Details are shown in the table below:

ON EXPLORATION Monumental Minerals Corp., reported final results of its maiden drilling program at its Jemi heavy rare earth element (REE) project in Coahuila, which commenced on the Veladora North and South prospect areas. “Of the 2000 m drilled, 186 m of core (124 samples) returned anomalous REE concentrations. These samples contained total rare earth oxides (TREO1) results greater than 500 parts per million (ppm), with a maximum of 2018 ppm, and a mean and standard deviation of 717 and 282 ppm (respectively). Heavy rare earth oxides (HREO2) are also highest in these samples with a maximum of 517 ppm, and a mean and standard deviation of 164 ppm and 98 ppm (respectively). Anomalous TREO1 and HREO2 values were observed in every drill hole except JV-23-08 and JV-23-10”. Table below shows La Veladora significant assay results:

  • Chesapeake Gold Corp., reported a new gold discovery at its Lucy project, Sinaloa. The company completed 14 holes in the 2023 campaign for a total of approximately 1,710 m drilled. Drilling highlights include hole LU23-06 with 6.11 g/t Au over 24m; hole LU23-09 with 2.57 g/t Au over 30m, including 3.12 g/t Au over 24m; hole LU23-10 with 1.95 g/t Au over 21m, including 3.3 g/t Au over 9m; and hole LU23-13 with 3.95 g/t Au over 24m, including 5.44 g/t Au over 12m.
  • Radius Gold Inc., provided an update of its drilling program at its Tropico project, Zacatecas. As previously reported, hole TDD-001 planned for 300m to intercept Tropico target, encountered difficult ground conditions at 56m in a large brecciated fault zone. “This hole intercepted from 19m to 56m, intense altered clay, silicification, variable zones of hydrothermal breccia and sets of stockwork veinlets with banded silica veins.  Assay results from 18 samples returned 29m at 0.34 g/t gold from 24m downhole with the final sample returning 0.6 g/t Au. Diamond drill hole TDD-002 was collared 25m west of TDD-001 and drilled at -55° directly under TDD- 001 using larger diameter PQ core. The hole is still in progress. Below 25m of soil cover the hole intersected a 45m zone of epithermal alteration (similar to TDD-001) with clay, variable silicification, brecciation and zones of veinlets with occasional banded vein textures”. “Diamond drill hole TDD-003 was collared on the west of the Tropico breccia and drilled east at -65° to scissor holes 1 and 2 at depth. TDD-003 was collared in silicified crackle breccia and has to date intersected 80m of variably clay altered, silicified, and brecciated sediment. Significantly at 69m depth the hole intersected a 13m zone of white banded massive epithermal veining and breccia. The hole is still in progress”.
  • Vortex Metals Inc., reported that it is focused on the Rhyolite Dome area at its Riqueza Minera project in Oaxaca, and has moved westward toward the copper-bearing gossans of the Laminas zone, which may represent a Cu-rich stringer zone in the footwall of a VMS deposit. The company has excavated manually six trenches, totalling 188m, in which has identified broad exposures of iron- and manganese-rich exhalite horizons, silicified rhyolite flows and altered metasediments. Vortex has collected 117 samples and sampling results are anticipated to arrive in October.

ON MINING

  • Fortuna Silver Mines Inc., reported Q3, 2023 production results from its San Jose Mine in Oaxaca. The company milled 247,542 tonnes of 189 g/t Ag and 1.14 g/t Au with metallurgical recoveries of 91.31% and 90.71% respectively, to produce 8,205 Oz Au and 1.37M Oz Ag. The San Jose Mine plans to deliver annual silver production within the guidance range of between 5.3 to 5.8M Oz Ag.
  • Guanajuato Silver Company Ltd., provided an operations update of their four silver producing mines: El Cubo, Valenciana, and San Ignacio Mines in Guanajuato, and Topia Mine in Durango. “Since commercial restart at Valenciana Mine Complex in January 2023, steady production improvements, aided by the refurbishment of both the Cata shaft and a new underground locomotive system, have enabled the company to achieve production at the Cata Mill averaging over 20,000 tonnes per month from material sourced from Valenciana and San Ignacio”. “El Cubo operation is now milling at the rate of approximately 22,000 tonnes per month; this rate represents approximately half of the total capacity at the mill”. “The Company, in conjunction with the Secretaría Del Trabajo (the Federal Ministry of Labour), have been working to improve safety and security conditions at the mine in response to the unfortunate fatality that occurred in August 2023”. “The mineralized systems currently being mined at Topia are extraordinarily high grade yet are associated with higher extraction costs because of the narrow nature of the vein structures. With the goal of improving profitability at Topia, the Company intends to dramatically transform its operations through the exclusive use of local mine contactors”. The Company now anticipates that full year AgEq 2023 production will range from 3.4M to 3.6M Oz.

ON FINANCING

  • Excellon Resources Inc., completed the extension of the maturity date of its 5.75% secured convertible debentures from July 30, 2023 to July 31, 2024. In consideration for the extension, the company has issued 6,888,458 common shares of the company priced at CAD $0.156 per common share to the holders of the debentures in satisfaction of an extension fee in an amount equal to 6% of the aggregate principal amount of the debentures at the time of announcement (La Negra Mine, Queretaro).
  • Bear Creek Mining Corporation closed its previously announced bought deal financing. The company issued a total of 27.2M units at a price of CAD $0.35 per unit for gross proceeds of CAD $9.5M. Each unit is comprised of one common share of the company and one common share purchase warrant of the company. Each warrant will be exercisable to acquire one common share at an exercise price of CAD $0.42 per warrant share until October 5, 2028. Net proceeds will be used to support additional development work at its Mercedes Mine in Sonora, to expand on recent positive underground drill results, and for general working capital purposes, including CADS $3M intended to be used to reduce Mercedes ´trade payables to a normalized level over the next two quarters.

ON RESOURCES AND DEVELOPMENT

  • Defiance Silver Corp., announced that new sampling of historical drill holes has identified high grade mineralization in wide widths in previously unrecognized zones at the San Acacio project area in Zacatecas. Significant drill intercepts were encountered in holes SAD-15-05 with 98 g/t Ag, 0.1 g/t Au, 0.01% Pb, and 0.03% Zn (107 g/t AgEq) over 1m, plus 91 g/t Ag, 0.15 g/t Au, 0.08% Pb, and 0.3% Zn (114 g/t AgEq) over 4.65m, including 308 g/t Ag, 0.06 g/t Au, 0.05% Pb, and 0.2% Zn (319 g/t AgEq) over 0.85m, plus 153 g/t Ag, 0.02 g/t Au, 0.05% Pb, and 0.1% Zn (161 g/t AgEq) over 2.72m; hole SAD-15-07 with 235 g/t Ag, 0.3 g/t Au, 0.07% Pb, and 0.16% Zn (267 g/t AgEq) over 1.12m, 89 g/t Ag, 0.16 g/t Au, 0.13% Pb, and 0.51% Zn (123 g/t AgEq) over 3.77m, including 283 g/t Ag, 0.26 g/t Au, 0.12% Pb, and 0.52% Zn (324 g/t AgEq) over 0.84m; hole SAD-17-14 with 129 g/t Ag, 0.25 g/t Au, 0.06% Pb, and 0.18% Zn (157 g/t AgEq) over 6.83m, including 319 g/t Ag, 0.59 g/t Au, 0.08% Pb, and 0.22% Zn (376 g/t AgEq) over 2.3m, including 1,180 g/t Ag, 2.23 g/t Au, 0.07% Pb, and 0.18% Zn (1,369 g/t AgEq) over 0.35m; hole SAD-17-15 with 155 g/t Ag, 0.02g/t Au, 0.06% Pb, and 0.14% Zn (162 g/t AgEq) over 36.7m, including 200 g/t Ag, 0.02g/t Au, 0.07% Pb, and 0.19% Zn (210 g/t AgEq) over 16.85m, including 279 g/t Ag, 0.03 g/t Au, 0.12% Pb, and 0.32% Zn (296 g/t AgEq) over 6.81m, including 595 g/t Ag, 0.07g/t Au, 0.27% Pb, and 0.65% Zn (629 g/t AgEq) over 2.82m; including 854 g/t Ag, 0.06g/t Au, 0.28% Pb, and 0.27% Zn (876 g/t AgEq) over 1.38m, including 285 g/t Ag, 0.02g/t Au, 0.05% Pb, and 0.17% Zn (294 g/t AgEq) over 3.18m, including 138 g/t Ag, 0.02g/t Au, 0.07% Pb, and 0.11% Zn (145 g/t AgEq) over 15m, including 228 g/t Ag, 0.03g/t Au, 0.14% Pb, and 0.19% Zn (241 g/t AgEq) over 6.59m, including 435 g/t Ag, 0.06g/t Au, 0.28% Pb, and 0.37% Zn (460 g/t AgEq) over 3m; and hole SAD-17-16 with 192 g/t Ag, 0.1g/t Au, 0.02% Pb, and 0.05% Zn (202 g/t AgEq) over 2.31m, including  810 g/t Ag, 0.44 g/t Au, 0.07% Pb, and 0.1% Zn (851 g/t AgEq) over 0.35m.
  • Heliostar Metals Ltd., reported 80.4% average gold recovery from seven composites representative of the High Grade Panel at its Ana Paula project in Guerrero. Metallurgical process is based on a conventional 75 micron grind size and Carbon-in-Leach (CIL) flowsheet. Highlights of the metallurgical testwork include that gold recoveries range from 74.6 – 88.1% for these samples; gravity testwork suggests that greater than 31% of the gold may be gravity recoverable; and it confirms the company’s interpretation that recoveries from high-grade gold mineralization can utilize simpler, lower cost, conventional milling processes.
  • Minera Alamos Inc., reported maiden Mineral Resource Estimate (MRE) for its Santana project, Sonora. The table below shows the MRE by zone for the Santana project:
  • Tocvan Ventures Corp., identified several high priority target areas with historic workings and silicified breccias through its due diligence field work completes at its Pilar project in Sonora. Surface samples collected during due diligence of the area have been sent to the lab and assays are pending.

ON DEALS AND CORPORATE ISSUES

  • Impact Silver Corp., announced that its shares are now trading in the USA on the OTCQB market under the symbol “ISVLF”. The Company’s shares also continue to trade in Canada on the TSX Venture Exchange under the symbol “IPT” (Zacualpan project, State of Mexico).
  • Sierra Madre Gold and Silver Ltd., reported that its common shares are now eligible for electronic clearing and settlement through the Depository Trust Company (DTC) in the United States. Sierra Madre’s shares started trading on the OTCQX® Best Market this summer (La Guitarra Mine, State of Mexico).
  • Goldgroup Mining Inc., announced the appointment of its new CEO, effective October 1, 2023. The previous Interim CEO, will continue as the Company’s Chief Financial Officer.  (Cerro Prieto Mine, Sonora).
  • Orex Minerals Inc., signed a non-binding letter of intent (LOI) with Exploraciones El Cairo S.R.L. de C.V., to acquire 100% of the Valenciana property in Zacatecas. Since the LOI is non-binding, the negotiation of a definitive agreement is underway at this time, and such definitive agreement is expected to include a four months due diligence period, scaled option payments, and an area of influence and a 2% NSR on the original concessions, plus a 0.5% NSR on adjacent properties obtained from third party concession holders within the area of influence. “The Valenciana Property hosts high-grade epithermal gold and silver veins, with base metals of lead and zinc, in Cretaceous sedimentary units and Tertiary rhyolitic and monzonitic intrusive rocks. It is located on the Mesa Central within the prolific “Silver Trend” of Mexico”.
  • Radius Gold Inc., completed the issuance of 500K common shares at a deemed price of $0.24 per share, for a total deemed value of $120K to Bruce Smith, in part for his ongoing leadership as the Company’s President and Chief Executive Officer (Tropico project, Zacatecas).

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, diatreme breccia related to a flow banded rhyolite dome in a locality in Durango, Mexico. Photo by Miguel A Heredia.

The Mining and Exploration News in Mexico: Highlights on the Second Week of December 2022

/ Gambusino Prospector / Leave a comment

By Jorge Cirett

During the 49th week of the year (December 5th to December 11th, 2022), 15 companies working in Mexico released news on their properties. Two companies posted exploration updates on their properties, two more companies informed on private placements, while one signed a concentrate pre-payment facility and two companies updated on work at its advanced properties. On a busy week for deals, four companies announced agreements on the purchase of five properties.  ON MEXICO ISSUES, a tit for tat of declarations between the Secretaría de Economía and Camimex reflected the state of affairs between the government and the mining industry for the last four years. ON EXPLORATION, in Sonora, Colibri Resource recommenced drilling at Evelyn. In Jalisco, Almadex Minerals released drilling results at San Pedro. ON MINING, no relevant news. ON FINANCING, Prismo Metals and Silver Viper informed on their private placements for $3 M and $335 K respectively. Guanajuato Silver Company informed on a new $5 M concentrate pre-payment facility. ON RESOURCES AND DEVELOPMENT, Torex Gold released drilling results from El Limón Sur Deep drilling, including the highest grade-m interval for Mexico so far in the year. Endeavour Silver released a new resource estimate for its La Pitarrilla project in Durango. ON DEALS AND CORPORATE ISSUES, Argonaut Gold and Heliostar Metals signed agreements for the purchase of the Ana Paula and San Antonio projects, in Guerrero and Baja California Sur respectively. Prime Meridian Resources optioned the Chuin project in Sonora from private vendors. Capitan Mining optioned from Fresnillo PLC a mining concession adjacent and in projection of mineralization at its Cruz de Piedra project in Durango. Golden Tag Resources is to acquire First Majestic Silver’s La Parrilla project in Durango. ON SOCIAL RESPONSIBILITY, one company informed on the receipt of an award in environmental and sustainability compliance.

ON MEXICO ISSUES

  • According to IMSS (Instituto Mexicano del Seguro Social) there are 421,833 mining industry direct employees in Mexico, same that in 2021 generated 2.5% of the GDP, or 34,782 million pesos (US$16.5 billion dollars). The country is within the ten top producers of fluorite, sodium sulfate, wollastonite, celestite, lead, molybdenum, barite, diatomite, magnesium sulfate, zinc, salt, gypsum, cadmium, gold, feldspar and copper, and the top silver producer during the last 13 years. Workers in the industry earn an average of 23,366 pesos per month.     
  • Camimex (Cámara Minera de México) expects Mexico’s investment in mining to surpass US$5 billion (5,000 million pesos). Jaime Gutiérrez, president, pointed that it occurs under the contrast of high metal prices and national policy regulatory hurdles. Karen Flores, director, expressed that the risk in mining is major in exploration, diminishing as the project advances to the mining stage. Another obstacle is the discretionary granting of permits, highlighting the need of a clear and objective decision-making process. Stressed also was the need to have public policies that favor the investments in clean energies, as these are crucial for the competitiveness of the country.
  • Raquel Buenrostro, head of the Economy Secretariat (Secretaría de Economía or SE) indulged herself in a barrage of accusations to the mining industry, pointing that it pays nearly zero taxes in proportion to its earnings, and is one of the industries with more corruption related to the Secretaría de Economía. She indicated that this is one of the reasons why the government has not granted mining concessions for the last four years, further adding that mining companies are no innocent entities, having problems the World around. “After hydrocarbons, the strongest smuggling is that of mining” she stressed, “more than textiles, shoes and clothing”. According to her numbers, mining companies pay 0.002% of its total earnings, compared to 2.4% of major contributors or between 30 and 35% for employees. She also commented on the case of a foreign company that using a twisted argument decided not pay taxes for ten years, while the case if reviewed by the Supreme Court. “Concessions, concessions and concessions were granted, some without complying with the law, some granted more than once, and those who have concessions do not comply with the obligations that should be covered…. the problem of corruption is strong, and I believe that this is one of the areas with biggest corruption problems in the Secretaría de Economía (Note of editor. The points of view of Raquel Buenrostro mimic those of the president, Andrés Manuel López Obrador, which is strongly critical of all private industries, including mining. More than a decade ago, while bidding for the presidency, he had expressed that no mining concessions were to be issued under his term. He’s true to his word, at least in this respect).
  • Camimex (Cámara Minera de México) replied to Raquel Buenrostro, Secretary of Economy (See above) that the companies affiliated to the entity comply in time with its fiscal obligations, including special taxes that only miners pay. The mining industry conveys more resources for the federal coffers than other productive sectors, according to information from the Secretaría de Hacienda y Credito Público. Camimex argues that its enterprises generate more than 400 K direct jobs, and 2.6 M indirect jobs, with an average salary that is 37% higher than the national one. Also, studies by UNAM (Universidad Autónoma de México) show that the municipalities and localities with mining activity have greater levels of economic and human development than the national average. The letter ended “We miners are proud of our activities, the responsible and committed companies in Camimex will continue contributing to the economic development and social wellbeing in the country. We reiterate our commitment and absolute will and interest to establish the dialogue and collaboration with the authorities that are conducive to the strengthening of the sector and the country”.

ON EXPLORATION

  • Colibri Resource Corp. re-commenced phase-2 reverse circulation drilling at the Evelyn property in Sonora. Five holes are planned with 2,000 m of drilling to test induced polarization targets from the 2021 geophysical survey, a second objective is to explore under extensive alluvial cover drilling a number of short holes and sample the top of the bedrock. A soil sampling program has been recently completed, and samples sent for “Gas Soil Hydrocarbon” testing.
  • Almadex Minerals Ltd. released drilling results from its first hole at the San Pedro project in Jalisco. The highlighted core length interval is 4.51 m @ 657 gpt Ag, 0.03 gpt Au (including 2.0 m @ 1,090 gpt Ag, 0.07 gpt Au). Almadex describes a breccia with silicified fragments in sericitic alteration, with galena and sphalerite occurring in the matrix and in fragments. These characteristics point to an intermediate sulfidation epithermal system, although other options have not been ruled out at this stage. “The San Pedro project covers a large area of acid sulphate alteration, including zones previous described as vuggy silica. Recent Terraspec analysis indicates sericitisation superposed on propylitic alteration in the mineralised zones with acid sulphate alteration occurring at the north”.

ON MINING

  • No Relevant News.

ON FINANCING

  • Prismo Metals Inc. announced that the private placement for up to $3 M has been fully allocated.  (Palos Verdes, Sinaloa).
  • Guanajuato Silver Company Ltd. signed a new concentrate and pre-payment facility with Ocean Partners Ltd., to provide a US$5 M revolving credit facility for operating and working capital purposes. GSilver also completed its previously announced shares-for-debt transaction to settle C$1.13 M (El Cubo, Guanajuato).
  • Silver Viper Minerals Corp. closed the first tranche of its $2 M private placement announced in November, for aggregate gross proceeds of $334.6 K (La Virginia, Sonora).

ON RESOURCES AND DEVELOPMENT

  • Torex Gold Resources Inc. reported assays results from step-out and infill drilling at El Limón Sur, targeting underground mineralization as well as open pit mill feed at its El Limón Guajes mine complex in Guerrero. Highlighted core length results comprise 15.96 m @ 87.60 gpt Au, 15 gpt Ag; 0.15% Cu (including 4.46 m @ 163.51 gpt Au, 21 gpt Ag and 3.82 m @ 166.94 gpt Au, 23 gpt Ag, 0.20% Cu); 22.81 m @ 25.31 gpt Au, 122 gpt Ag, 3.45% Cu (including 3.00 m @107.63 gpt Au, 259 gpt Ag, 6.18% Cu); 20.52 m @ 9.49 gpt Au, 63 gpt Ag, 0.21% Cu; 18.72 m @8.10 gpt Au, 24 gpt Ag, 0.95% Cu; 9.90 m @ 15.19 gpt Au, 43 gpt Ag, 0.56% Cu; 17.85 m @ 13.39 gpt Au (including 2.25 m @ 90.05 gpt Au); 7.70 m @ 22.99 gpt Au, 8 gpt Ag, 0.18% Cu; 3.99 m @ 43.24 gpt Au, 25 gpt Ag. These strong results add the El Limón Sur Deep to the previously identified potential mining front at Sub-Sill South. “The style of mineralization at El Limón Sur Deep is like Sub-Sill and ELD, and is characterized by gold, with locally high silver and copper grades. Gold occurs in variably sulfidized, pyrrhotite-rich skarn, while silver and copper mineralization is controlled primarily by the degree of sulfidation of the host skarn. Mineralization is mainly associated with retrograde alteration characterized by the occurrence of phlogopite, amphibole, chlorite, calcite and lesser amounts of quartz and epidote, and local magnetite”.
  • Endeavour Silver Corp. filed a NI-43-101 technical report with a resource estimate for the recently acquired (July 2022) La Pitarrilla project in Durango. Total indicated resources, open pit and underground, oxide and sulfide, stand at 158.6 M tonnes @ 96.4 gpt Ag, 0.31% Pb, 0.74% Zn, containing 491.6 M Oz Ag, 1.1 billion Lb Pb, 2.6 billion Lb Zn or 693.9 M Oz AgEq. Inferred resources, open pit and underground, oxide and sulfide, comprise 35.4 M tonnes @ 87.2 gpt Ag, 0.36% Pb, 0.85% Zn, containing 99.4 M Oz Ag, 281 M Lb Pb, 662 M Lb Zn or 151.2 M Oz AgEq.

ON DEALS AND CORPORATE ISSUES

  • Argonaut Gold Inc. entered into a binding purchase agreement with Heliostar Metals Ltd. for the sale of the Ana Paula project in Guerrero. The deal involves a cash payment of US$10 M at closing, US$5 M in Heliostar shares when either an extension to the current mining permit or a new underground mining permit is granted, US$2 M on the completion of a feasibility study (FS), US$3 M in cash and US$2 M in shares on construction announcement and US$5 M in cash and US$3 M in Heliostar shares on announcement of commercial production.
  • Argonaut Gold Inc. entered into an option agreement with Heliostar Metals Ltd. for the sale of the San Antonio project in Baja California Sur. Heliostar is to pay Argonaut US$80 M if the gold price is below $1,800 per ounce for the six months preceding the exercise of the option, US$120 M if the price is in the US$1,800 to US$2,000 per ounce range in the same period, or US$150 M if the gold price is above US$2,000 per ounce in the said period. A 2.0% NSR is to be paid to Argonaut if the option is exercised. The term of the option is for three years, that can be extended for 18 months if Heliostar is able to acquire an environmental permit from SEMARNAT, the environmental regulator (Note of editor. – which is unlikely to occur on this presidential term, ending in 2024).
  • Prime Meridian Resources Corp. executed two letters of intent for the option to purchase up to 100% interest in the 3,792-hectare El Chuin copper project in Sonora. The project encompasses an interpreted porphyry copper target, with small scale mine workings developed in veins, disseminations and replacement style mineralization. The main target areas are Samaniego, La Gloria and Nogales. The option envisages the payment of US$30 K on year one, US$50 K and 250 K shares on year two, US$50 K and 500 K shares on year three, US$50 K and 1 M shares on year four and US$50 K and 1.5 M shares on year five, for a total of US230 K and 3.25 M shares, plus US$2.22 M of investment on the property. The current property owner retains a 1% NSR that can be bought for US$1.5 M. A second purchase option requires the payment prior to the 5th year anniversary of US$250 K for the La Gloria concession, US$250 K for La Gloria II concession and US$1 M for the Nino Luis concessions. “The El Chuin concessions are currently not in good standing and PMR will be obliged to bring the concessions to good standing. No payments to the vendors will be made prior to obtaining good standing for the concessions”.
  • Capitan Mining Inc. executed an option agreement with Fresnillo PLC to acquire 100% interest in mineral rights to a key property at the Cruz de Plata project in Durango. The high-grade silver trend owned by Capitan is now 2.5 km in length, including extensions and targets on the Jesus Maria, San Rafael, El Tubo, El Refugio and Teresa veins. The optioned land holds 2,000 m of historic drilling in five holes with highlighted core length intervals of 1.0 m @ 233 gpt Ag, 0.1%Pb; 5.2 m @ 185 gpt Ag, 0.29 gpt Au, 0.90% Pb, 1.7% Zn; 29.0 m @ 55 gpt Ag, 0.14 gpt Au, 0.2% Pb, 0.6% Zn (including 1.3 m @ 284 gpt Ag, 0.43 gpt Au, 1.6% Pb, 5.5% Zn); 6.3 m @ 94 gpt Ag, 0.2% Pb, 0.4% Zn; 4.7 m @ 54 gpt Ag, 0.7% Pb, 1.2% Zn; 1.2 m @ 157 gpt Ag, 0.12 gpt Au, 1.1% Pb, 3.3% Zn. The deal involves a 3-year exploration agreement for the “Casco U” mining concessions, for a total of US$1.0 M over the period and 1% NSR which can be bought for US$1 M.
  • Golden Tag Resources Ltd. entered into a definitive agreement with First Majestic Silver Corp. to acquire 100% interest on La Parrilla project in Durango. The property covers 69,478 hectares, with five underground mines, an open pit and a processing plant comprising parallel 1,000 tpd flotation and 1,000 tpd cyanidation leach circuits where oxide and sulfide ores can be processed. There are 9.5 M Oz AgEq in measured and indicated historical resources and 12.5 M Oz AgEq in inferred resources. In consideration for the purchase Golden Tag will issue First Majestic US$20 M in Golden Tag shares, and US$2.7 M in the first 18 months, US$5.75 M (cash or shares) when either 5 M Oz AgEq of reserves or 22 M Oz AgEq of measured and indicated resources are declared. And US$5.05 M (cash or shares) when a new zone with a NI-43-101 report holding more than 12.5 M Oz AgEq is announced. After closing First Majestic will have the right to maintain its pro-rata interest in Golden Tag, up to 19.9% of shares.

ON SOCIAL RESPONSIBILITY

  • Hecla Mining Co. received the 2022 Environmental and Sustainability Excellence Award for its San Sebatian mine in Durango. The award by the American Exploration & Mining Association (AEMA) is in recognition by the company’s strong commitment to the highest environmental and sustainability standards.

On the image below puzzling boudin like siliceous bands in limestone on a project in the Sonoran Desert. Picture by Jorge Cirett.

The Mining and Exploration News in Mexico: Highlights on the Fourth Week of November 2022

/ Gambusino Prospector / Leave a comment

By Jorge Cirett

During the 47th week of the year (November 21st to November 27th, 2022), 14 companies working in Mexico released news on their properties. One company declared share dividends, one more the partial repayment of two loan facilities and one more the intention to settle a debt with shares. Four companies updated on work at its advanced properties. One company announced the agreement to pursue an option in another company’s property.  ON MEXICO ISSUES, the AIMMGM pointed that Mexico is a mining country, but that it has neglected to inform of the goods of the trade. Arcelor Mittal announced a significant investment at the Las Truchas iron mine in Michoacan. ON EXPLORATION, In Sonora, Radius Gold informed on work at Maricela. In Chihuahua, Radius Gold updated in work at Amalia and Plata Verde projects, with JV’s partners Pan American Silver and Fresnillo respectively. ON MINING, Discovery Silver, Impact Silver and Guanajuato Silver Company released Q3 2022 production and/or financial results. ON FINANCING, Alamos Gold declared a quarterly dividend per share. Guanajuato Silver Company announced the partial repayment of two loan facilities. Defiance Silver is to settle a $41.9 K debt through the issuance of shares. ON RESOURCES AND DEVELOPMENT, Discovery Silver released results from drilling at Cordero, in Chihuahua. GR Silver Mining informed on results from drilling at the SE zone of the San Marcial project in Sinaloa, with an impressive silver intercept of 185.5 m @ 111 gpt Ag. Defiance Silver resumed drilling at the Veta Grande vein system in Zacatecas. Azucar Minerals received results from drilling on the Lithocap target at the El Cobre project in Veracruz. ON DEALS AND CORPORATE ISSUES, Vizsla Silver entered into a LOI with Prismo Metals for a strategic investment and right of first refusal for the purchase of Prismo’s Palos Verdes project in Sinaloa.

ON MEXICO ISSUES

  • Andrés Robles Osollo, Vicepresident of government relations of the AIMMGM (Asociación de Ingenieros de Minas, Metalurgistas y Geólogos de México) pointed that México is a mining country, but that the industry has neglected the promotion of the craft and the importance of México on the World production of minerals. México is the leader in silver production, and is within the first ten producers of gold, copper, lead and zinc.
  • Arcelor Mittal announced the investment of 3,000 million pesos at Las Truchas mine in Michoacan, to increase the production rate from 1 M tonnes/year to 2.3 M tonnes/year. The company complained on the illegal blockage of the railroad line for three months in 2021 by a teachers Union, and said that they are working closely with the Michoacan government to keep the rails free of blockades.  

ON EXPLORATION

  • Radius Gold Inc. provided an update on the company’s exploration activities at the 10,250 ha Amalia project, in Chihuahua. The JV with Pan American Silver Corp. has completed 23,059 m of drilling in 67 holes on the California, Amalia and El Cuervo vein systems. Recent mapping and sampling extended the target for 1.5 km at California, and several parallel structures were identified. Pan American “has completed its right to earn an initial 65% interest in the Amalia Project by making cash payments to Radius totalling US$1.5 million (paid) and expending US$2 million on exploration over four years (completed). Pan American may earn an additional 10% by advancing the property to preliminary feasibility”.
  • Radius Gold Inc. informed on work at the Plata Verde project in Chihuahua. Fresnillo PLC has an agreement since mid-2022 to negotiate an option agreement to earn 70% interest in the project. Since then, Fresnillo has funded US$100 K on the signature of the agreement, paid US$65 in underlying property option payments, paid US$103 K in back taxes and invested US$35 K in the project. Fresnillo has to spend over a four-year period US$5 M in exploration and make option payments to Radius of US$3.1 M which includes US$1.1 M to cover underlying property payments. “Should either Party’s interest fall below 10% interest in NewCo that interest would convert to a 2% NSR”.
  • Radius Gold Inc. notified on exploration at its Maricela project in Sonora. The project is 20 km south from the Cananea copper mine, and only a few kilometers from the Loma de Plata silver deposit discovered a few years ago by Azure Minerals. Radius has “mapped and sampled an epithermal silver and gold mineralized vein system extending approximately 1.5km long by 300m wide, within which occurs multiple veins, stockworks and breccias. Vein intersections have exposed widths of up to 25 metres”. Highlighted chip sampling results comprise 3 m @ 4.46 gpt Au, 1,335 gpt Ag; 6 m @ 1.03 gpt Au, 418 gpt Ag; 25.3 m @ 0.31 gpt Au, 62 gpt Ag. Radius is awaiting final registration of the option agreement, as already counts with the drilling permit.

ON MINING

  • Discovery Silver Corp. released financial results for the third quarter 2022. Results from the PFS metallurgical testwork program at Cordero in Chihuahua highlighted recoveries in the 90-95% range for Ag, Pb and Zn. The phase II drilling program of close to 80,000 m of drilling in over 250 holes was completed during the quarter. Cash, cash equivalents and short-term investments stood at $55.5 M at the end of the period.
  • Impact Silver Corp. announced its financing and operating results for the Q3 2022. During the quarter 39.8 K tonnes were processed at the mill at an average grade of 165 gpt. In response to higher operational costs and lower metal prices, Impact initiated a first round of lay-offs and reduced its exploration spending. “The cash position remains strong at $16.5 million with working capital of $17.6 million”.
  • Guanajuato Silver Company Ltd. provided consolidated production results for the Q3 2022. The consolidated production from the El Cubo Mines Complex in Guanajuato, San Ignacio in Guanajuato and Topia in Durango during the quarter comprised 107.4 K tonnes mined, 107 K tonnes milled at a rate of 1,274 tonnes per day, recovering 88.5% Ag, 86.3% Au, to produce 329.3 K Oz Ag, 3,226 Oz Au, 537.6 K Lb Pb, 677.1 K Lb Zn (700.3 K Oz AgEq).

ON FINANCING

  • Alamos Gold Inc. declared a quarterly dividend of US$0.025 per common share. “The Company has paid dividends for 13 consecutive years during which time $285 million has been returned to shareholders through dividends and share buybacks, including $48 million thus far in 2022” (Mulatos, Sonora).
  • Guanajuato Silver Company Ltd. announced the partial repayment of the two loan/pre-payment facilities with Swiss-based precious metal trading firm OICM Precious Metals S A. “Guanajuato Silver has delivered an aggregate of 96,518 ounces of silver and 846 ounces of gold representing five months’ deliveries of silver and gold ounces to OCIM thereby reducing the total number of monthly delivery payments remaining to OCIM under both facilities to ten” (El Cubo, Guanajuato).
  • Defiance Silver Corp. intends to settle $41.9 K of debt through the issuance of common shares of the company (San Acacio, Zacatecas).

ON RESOURCES AND DEVELOPMENT

  • Discovery Silver Corp. announced results from 15 drill holes of upgrade and expansion drilling of the proposed open pit, subsequent to the cut-off date for the pre-feasibility study (PFS) on its Cordero project in Chihuahua. Highlighted core length intervals comprise 77 m @ 46 gpt Ag, 0.08 gpt Au, 0.7% Pb, 1.4% Zn; 22 m @ 83 gpt Ag, 0.10 gpt Au, 1.8% Pb, 3.2% Zn; 96 m @ 33 gpt Ag, 0.03 gpt Au, 0.7% Pb, 1.8% Zn (including 36 m @ 44 gpt Ag, 0.04 gpt Au, 0.9% Pb, 3.1% Zn); 43 m @ 62 gpt Ag, 0.11 gpt Au, 1.4% Pb, 1.7% Zn; 52 m @49 gpt Ag, 0.07 gpt Au, 0.8% Pb, 1.7% Zn. “The Company has now completed approximately 17,000 m (52 holes) as part of its Feasibility Study drill program”. Total meters drilled in the project now is over 293,000 m in 735 holes.
  • GR Silver Mining Ltd. released surface drilling results from four holes on the Southeast Area of the San Marcial project in Sinaloa. Highlighted core length results comprise 14.1 m @ 186 gpt Ag (including 0.2 m @ 6,405 gpt Ag, 10.1% Pb, 17.9% Zn); 73.5 m @ 72 gpt Ag (including 1.1 m @ 905 gpt Ag and 0.8 m @ 1,039 gpt Ag); 185.5 m @ 111 gpt Ag (including 83.2 m @ 215 gpt Ag); 1.0 m @ 31.3 gpt Au. “The Company expects to complete three more drill holes in the SE Area prior to the December cut-off date for data to be incorporated into the 3D geological model, with the updated resource estimation expected to be released in Q1|2023”.
  • Defiance Silver Corp. resumed drilling at the Veta Grande vein system at the Zacatecas project in Zacatecas. “The approximate 4000m program is an extension of the previous phases of drilling, all of which returned high grades down plunge and outside of the current resource estimate”. Drilling is to focus on the recently discovered deep historic working to the East, down plunge of high-grade results below the current resource estimate, the footwall vein north of the main Veta Grande structure and the cross structures and vein splays with mineralization potential.
  • Azucar Minerals Ltd. received and compiled results from two holes completed at the Lithocap target at its El Cobre project in Veracruz. “Large intervals of brecciated rock were intersected possibly reflecting a diatreme like body that may have disrupted any earlier porphyry alteration zonation in this area”. No significant intervals of porphyry mineralization were intersected, with the most relevant result being a late sulfide vein which returned 0.7 m @ 0.95% Cu, 0.42 gpt Au.

ON DEALS AND CORPORATE ISSUES

  • Vizsla Silver Corp. entered into a non-binding letter of intent (LOI) with Prismo Metals Inc. to make a strategic investment with right for first refusal to Purchase the Palos Verdes property, adjacent to Vizsla’s Panuco project in Sinaloa, and 4 M shares of Prismo for C$2 M. “The consideration for the Strategic Investment will consist of a cash payment of C$500,000 at closing and 1,000,000 common shares of Vizsla”. After completion of the deal VIZSLA will own 12% of Prismo shares on a basic basis and 17% on a partially diluted basis.

ON SOCIAL RESPONSIBILITY

  • Vizsla Silver Corp. exceeded one million consecutive work hours without a lost time incident at its Panuco project in Sinaloa.
  • Discovery Silver Corp. released its environmental, social and governance report (ESG) “and subsequent to quarter end received its official ESR Distinction, which is issued by the Mexican Center for Philanthropy to organizations that have demonstrated they operate in a socially and environmentally responsible manner, and its Great Place to Work Certification, which recognizes companies that create an outstanding employee experience through building a workplace culture of trust, credibility, respect, pride and collaboration” (Cordero project, Chihuahua).
  • Torex Gold Resources Inc. released its inaugural Climate Change Report with emphasis in carbon emission reduction, and confirmed having received the permitting from SEMARNAT (Environmental regulator) for construction of an 8.7 megawatt solar plant on its mining concessions and the awarding of a contract for battery electric vehicle scoop fleet at its Media Luna project in Guerrero.

On the image below puzzling boudin like siliceous bands in limestone on a project in the Sonoran Desert. Picture by Jorge Cirett.