Highlights on the Fourth Week of November, 2018. Mining and Exploration News in Mexico

Advanced argillic alteration

By Miguel A Heredia

During the 47th week of the year (November 19th to November 25th, 2018), at least 14 press releases were announced by companies working in Mexico, with five informing on exploration results, three reporting on advances on their properties, three disclosing deals and corporate issues, two announcing financing issues, and one related to a law proposal to force miners to seek permission from the communities. ON MEXICO ISSUES, a law proposal is being presented by a MORENA senator to force miners to seek permission from the communities around their mining projects. ON EXPLORATION, In Sonora, Aloro Mining mobilized a RC drill rig to its Los Venados project, Mexus Gold commenced a drilling program on its Santa Elena project, and Millrock announced a new drilling program at its La Navidad project. Millrock also reported results from its El Picacho project.  In Coahuila, Silver Bull completed a VTEM and Magnetic geophysical survey on its Sierra Mojada project. In Veracruz, Azucar Minerals reported drilling results from its El Cobre project.  ON MINING, no relevant news. ON FINANCING, Goldplay announced a private placement intended to raise up to CAD$ 1.5M. Mexican Gold closed the first tranche of a non-brokered private placement for $2.06M. ON RESOURCES AND DEVELOPMENT, Minera Alamos received a positive notification from SEMARNAT for the development of its la Fortuna project in Durango.  SilverCrest filed a technical report and updated mineral resource estimate for its Las Chispas project in Sonora. Torex reported in-fill and step-out drilling results from its El Limón-Guajes mine complex in Guerrero.  ON DEALS AND CORPORATE ISSUES, Consolidated Zinc held its 2018 annual general meeting (Plomosas mine, Chihuahua), Avino announced management changes (Avino mine, Durango), and Kootenay entered in an option agreement to acquire a 100% of interest of the Columba property in Chihuahua.

ON MEXICO ISSUES

  • Communities’ consultation. A law proposal is being presented by a MORENA senator to force miners to seek permission from the communities around their mining projects. Proposed initiatives include empowering the Ministry of Economy to declare certain zones as not viable for mining, and revoke permits and existing concessions that had a negative social impact. They also contemplate charging Mexican agencies with overseeing the social and environmental impact of mining activities. The news caused the Grupo Mexico and Peñoles stocks to tumble 5.4% and 4.7% respectively on the Mexican Stock Exchange.

ON EXPLORATION

  • Aloro Mining Corp., mobilized a RC drill rig to its Los Venados project in Sonora while a bulldozer continues the construction of drill pads and access roads to other drill sites. This is the first time that the southern portion of the property is going to be drill-tested.
  • Mexus Gold US, commenced a drilling program on the Julio II zone within its Santa Elena project in Sonora.
  • Millrock Resources Inc., announced that a new drilling program is underway at its La Navidad project in Sonora, where the company has a JV option with Centerra Gold Inc. Seven holes totaling 1,500m were planned to test the northwest portion of the property, being 4 holes at the El Tigre prospect where Au has been detected by soil sampling in the vicinity of historic mine workings, and 3 holes at the El Chupadero prospect where decalcification and jasperoid replacement suggests the presence of intrusion-related gold mineralization. Millrock also reported that a 2,007.80m drilling program was completed at its El Picacho project in Sonora. Unfortunately, only narrow Au-bearing intersections were encountered. Highlights include 1m of 0.72 g/t Au in Hole P18-004D, 1m of 2 g/t Au in Hole P18-007D, and 0.5m of 5.7 g/t Au in Hole P18-008D.
  • Silver Bull Resources Inc., completed a 5,297line km helicopter-borne VTEM and Magnetic geophysical survey on its Sierra Mojada project in Coahuila. The airborne survey covered 4 main regional prospects including the main deposit at its Sierra Mojada property. It targeted over 50 km of the regional San Marcos Fault, due to this structure is considered to be the main control of the mineralization in the district. This survey is part of a work program conducted under a JV option with its partner South 32 Limited.
  • Azucar Minerals Ltd., announced results from its ongoing drilling program at the El Cobre project in Veracruz. Highlights from drilling at the Villa Rica target are 161.20m of 0.23 g/t Au and 0.15% Cu in Hole EC-18-052, including 18m of 0.51 g/t Au and 0.43% Cu, and another interval of 10m of 0.60 g/t Au and 0.48% Cu, and 116.30m of 0.21 g/t Au and 0.16% Cu in Hole EC-18-054, including 12.40m of 0.85 g/t Au and 0.39% Cu.

ON MINING

  • No relevant news.

ON FINANCING

  • Goldplay Exploration Ltd., announced a private placement intended to raise up to CAD$ 1.5M
  • Mexican Gold Corp., closed the first tranche of a non-brokered private placement for $2.06M. Net proceeds will be used to continue exploration on the Company’s Las Minas project located in the State of Veracruz, Mexico, to make the final property payment, and for general working capital purposes.

 ON RESOURCES AND DEVELOPMENT

  • Minera Alamos Inc., received a positive notification from SEMARNAT regarding the Company´s permit applications (MIA / ETJ) for the development of its la Fortuna project in Durango. It allows Minera Alamos to initiate applications for other permits required in advance of any commercial mine production.
  • SilverCrest Metals Inc., filed a technical report and updated mineral resource estimate for its Las Chispas project in Sonora. There are no material differences in the mineral resources disclosed in the press release dated September 19, 2018.
  • Torex Gold Resources Inc., reported in-fill and step-out drilling results in the Sub-Sill Zone of its El Limón-Guajes mine complex in Guerrero. Highlights from the drilling program include 8.1m of 30.2 g/t Au, 38 g/t Ag, and 4.3% Cu in Hole SST-101, 3.6m of 48.9 g/t Au, 6 g/t Ag, and 0.1% Cu in Hole SST-118, and 4.6m of 34.4 g/t Au, 13 g/t Ag, and 0.9% Cu in Hole SSUG-059. The deposit remains open in several directions.

ON DEALS AND CORPORATE ISSUES

  • Consolidated Zinc Limited, held its 2018 annual general meeting and advised that the company increased 32% of the mineral resources and filed a bankable FS assessing the viability of its Plomosas mine in Chihuahua.
  • Avino Silver & Gold Mines Ltd., announced the retirement of its CFO and commenced a selection process to find a replacement. (Avino mine, Durango).
  • Kootenay Silver Inc., entered in an option agreement to acquire a 100% ownership of the Columba property in Chihuahua. This property covers a large high-grade silver epithermal system with several veins varying from 0.5 to up to 6.0m in width which have been mapped for over 200m up to 2Km in length. Sampling has returned grades of up to 692 g/t Ag. Kootenay can acquire a 100% of the property by making staged payments over a 4-year period totaling US$ 3.29 M with an initial payment of US$ 15K, first and second years payments totaling US$ 75K and US$ 150K respectively. The Agreement includes a work commitment of US$ 250K by the first anniversary and US$ 750K by the second anniversary of the Agreement. Upon earn-in the vendors retain a 2% NSR of which 1% can be purchased by the Company for US$ 750K.

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, advanced argillic alteration in a skarn-epithermal mineralized system in Durango, Mexico.  Photo by Miguel A Heredia.

 

Highlights on the Second Week of November, 2018. Mining and Exploration News in Mexico

Banded quartz texture

By Miguel A Heredia

During the 45th week of the year (November 5th to November 11th, 2018), at least 36 press releases were announced by companies working in Mexico, with thirteen communicating mining activities, seven disclosing deals and corporate issues, seven informing on exploration results, six announcing financing issues, and 3 reporting on advances on their properties. ON MEXICO ISSUES, no relevant news.  ON EXPLORATION, In Sonora, Aloro commenced the road construction and building of drill pads on its Los Venados project, San Marco Resources announced the commencement of a drilling program at its Chunibas project, Sonoro reported drill results from its Cerro Caliche project, and Minaurum discovered two new vein zones at its Alamos Silver project. In Coahuila, Discovery Metals completed a 40 line-km ground magnetometer survey at its Monclova project.  ON MINING, Alio Gold, Americas Silver, Argonaut, Avino, Consolidated Zinc, First Majestic, Fortuna Silver, Hecla, Pan American Silver, Premier Gold, Santacruz Mining, and US Antimony reported production results from their Mexican operations. ON FINANCING, Auxico Gold closed a non-brokered private placement for $315K. GoGold closed the US$12M sale of the Santa Gertrudis royalty with Metalla Royalty and Streaming Ltd. Impact Silver announced a non-brokered private placement to raise up to $1.5M. Telson Mining received $5M from Trafigura Mexico for the second tranche of the loan agreement announced on December 18, 2017. Silver Spruce consolidated its common shares and proposed to complete a non-brokered private placement to raise up to $1.5M. Golden Minerals reported its Q3 2018 financial results. ON RESOURCES AND DEVELOPMENT, Kootenay designed a drilling program aimed to expand resources at its la Cigarra deposit in Chihuahua. Hecla released in-fill drilling results for its San Sebastian mine in Durango. ON DEALS AND CORPORATE ISSUES, Capstone Mining made reductions to its organizational structure (Cozamin mine, Zacatecas). Defiance Silver and ValOro Resources signed a definitive merger agreement (San Acacio project, Zacatecas). Golden Goliath announced that Desarrollos Mineros El Aguila (subsidiary of Fresnillo plc) exercised the option agreement on its Uruachic project in Chihuahua. New Gold (Cerro San Pedro mine, San Luis Potosi) and Prize Mining (Manto Negro project, Coahuila) appointed their Chief Financial Officer respectively. Golden Reign and Marlin Gold completed business combination to form Mako Mining Corp (La Trinidad mine, Sinaloa).

ON MEXICO ISSUES

No relevant news.

ON EXPLORATION

  • Aloro Mining Corp., commenced a 3.6km road construction and building of 12 permitted drill pads at its Los Venados project in Sonora. “The road construction will open up new exposures for sampling in mineralized areas and structure that were previously undercover”.
  • San Marco Resources, commenced a drilling program at its Chunibas project in Sonora where they have a JV agreement with Antofagasta plc. The drilling program will consists of initial 1,500m comprised in six holes with the goal of testing down dip and along strike high-grade Cu-Ag mineralized mantos hosted in volcanic rocks in different stratigraphic levels. The manto-type mineralization has been identified along a corridor of 1.7km long and at least 300m wide.
  • Sonoro Metals Corp., reported results from the initial 13 drill holes from its Cerro Caliche project in Sonora. Significant intersections are: Hole SCR-002 with 27.43m of 0.6 g/t Au and 7 g/t Ag; Hole SCR-003 with 30.48m of 0.5 g/t Au and 8 g/t Ag; Hole SCR-004 with 39.62m of 0.9 g/t Au and 9 g/t Ag, including 6.09m of 2.9 g/t Au and 20 g/t Ag; Hole SCR-005 with 10.67m of 0.7 g/t Au and 21 g/t Ag, and 10.67m of 0.6 g/t Au and 1 g/t Ag; Hole SCR-006 with 10.67m of 1.2 g/t Au and 21 g/t Ag, including 6.1m of 2 g/t Au and 26 g/t Ag; Hole SCR-007 with 22.86m of 0.9 g/t Au and 13 g/t Ag, including 4.57m of 2.2 g/t Au and 20 g/t Ag; and SCR-008 with 36.58m of 0.5 g/t Au and 4 g/t Ag. “The drilling has further confirmed that mineralization in the Los Japoneses zone remains open in all directions, including at depth.”
  • Minaurum Gold Inc., discovered two new vein zones at its Alamos Silver project in Sonora: the San Jose vein, a NNE trend structure hosted in a fault zone which can be traced for at least 3km long, and the Santa Rosa vein, a stringer-quartz veinlets structural zone that runs for at least 300m along strike. The discovery of the new veins was through its ongoing district-scale reconnaissance program. Sampling on the San Jose vein returned grades ranging from anomalous up to 1,995 g/t Ag, 2.5% Cu, and 1.9% Zn, while sampling on the Santa Rosa vein only retuned anomalous values.
  • Discovery Metals Corp., completed a 40 line-km ground magnetic survey at its Monclova project in Coahuila to cover three targets: Real Viejo with 23 lines spaced 50m apart, Corrales with 17 lines spaced 100m apart, and Soledad with 12 lines spaced 50m apart. “Results of the Real Viejo survey highlight a linear magnetic high parallel to the mapped mineralized and altered zone along the southern boundary of the Monclova intrusive complex centered on the Project. This suggests continuity of the alteration and/or mineralization along the contact and provides support for the holes planned to test this zone. Interestingly, similar magnetic high zones occur across the neighboring Corrales target. Both linear magnetic highs as well as linear lows are highlighted by the survey and represent prospective targets on the Project. Results at the northern Soledad grid also highlight similar geometries”.

ON MINING

  • Alio Gold Inc., reported Q3 production results from its San Francisco mine in Sonora. Alio produced 11.6K Oz Au and 3.9K Oz Ag at an AISC of $1,315 per Oz produced.
  • Americas Silver Corporation, produced 323K Oz Ag, 7.5M Lb Pb, and 7.9M Lb Zn during the Q3-2018 from its Cosala operations in Sinaloa and Galena Complex in Idaho.
  • Argonaut Gold Inc., announced Q3 2018 production results from their Mexican operations. At the El Castillo mine in Durango, Argonaut mined 2, 267,000 tonnes of 0.33 g/t Au, to produce 10.3K Oz Au and 4.8K Oz Ag (10.4K GEOs or Gold Eq Oz). At the San Agustin mine in Durango, the company mined 1, 747,000 tonnes of 0.34 g/t Au to produce 15.7K Oz Au and 52.9K Oz Ag (16.5K GEOs). At its La Colorada mine in Sonora, Argonaut mined 1.2M tonnes of 0.33 g/t Au to produce 7K Oz Au and 16.2K Oz Ag (7.3K GEOs).
  • Avino Silver & Gold Mines Ltd., milled 193, 645 tonnes during Q3 2018 to produce 2.2K Oz Au, 342K Oz Ag, and 992K Lb Cu (704.4K Oz Ag Eq) at an AISC of $11.15 per payable Oz Ag Eq.
  • Consolidated Zinc Limited, reported the October 2018 production from its Plomosas mine in Chihuahua. The company milled 237 tonnes of 12.9% Zn and 3.3 % Pb to produce 68.3K Lb Zn and 17.6K Lb Pb.
  • First Majestic Silver Corporation, released Q3 2018 production results from their Mexican operations. The table below shows the quarterly operating and cost parameters at each of the mining operations:

  • Fortuna Silver Mines Ltd., milled 262, 710 tonnes during Q3 2018 at grades of 1.6 g/t Au and 258 g/t Ag to produce 12.4K Oz Au and 1.99M Oz Ag, with metallurgical recoveries of 91% for Au and Ag.
  • Hecla Mining Company, released Q3 production results from its San Sebastian mine in Durango. During Q3 2018, Hecla produced 3.7K Oz Au and 522K Oz Ag.
  • Pan American Silver Corp, reported Q3 2018 production results from each of their mining operations. At La Colorada, Zacatecas the company produced 1.1K Oz Au and 2M Oz Ag. At its Dolores mine in Chihuahua, Pan American Silver produced 33.1K Oz Au and 1M Oz Ag.
  • Premier Gold Mines Limited, announced Q3 2018 production results from its Mercedes mine in Sonora. The company processed 159,608 tonnes of 3.52 g/t Au and 39 g/t Ag with metallurgical recoveries of 96.6% and 43.7% respectively, to produce 17.5K Oz Au and 88.4K Oz Ag at an AISC of $1,059 per Oz produced.
  • Santacruz Silver Mining , released Q3 2018 production results from their Mexican mining operations.  At Veta Grande, Zacatecas, the company processed 42,011 tonnes with 0.26 g/t Au, 77 g/t Ag,  0.8% Pb and 1.94 % Zn to produce  140 Oz Au, 62.2K Oz Ag, 590.8K Lb Pb and 952.4K Lb Zn. At El Rosario, San Luis Potosi, Santacruz processed 15,965 tonnes of 0.26 g/t Au, 0.2% Pb and 1.6% Zn to produce 85 Oz Au, 18.4K Oz Ag, 72.7K Lb Pb, and 467.4 Lb Zn.
  • Torex Gold Resources Inc., processed 1,246,000 tonnes with 2.6 g/t Au during Q3 2018 from its El Limon-Guajes Mine Complex in Guerrero. The quarterly production was 100.4K Oz Au with a metallurgical recovery of 89%.
  • US Antimony Corporation, released its September and October 2018 production results. In September, US Antimony produced 141.2 K Lb Sb and 1,394 tonnes of zeolites, while in October produced 123.5 Lb Sb and 1,065 tonnes of zeolites.

ON FINANCING

  • Auxico Resources Canada Inc., closed a non-brokered private placement for gross proceeds of $315K (Zamora project, Sinaloa).
  • GoGold Resources Inc., closed the US$12M sale of its Santa Gertrudis royalty with Metalla Royalty and Streaming Ltd. GoGold took US$6M of the US$12M sale price in common shares of Metalla, which represent 9.9% of the Metalla shares outstanding.
  • Impact Silver Corp., announced a non-brokered private placement to raise up to $1.5M to explore its Zacualpan project in Mexico State for additional high potential precious metals as well as Au-Cu targets.
  • Telson Mining Corporation, received $5M from Trafigura Mexico S.A. de C.V., for the second tranche of the loan agreement for the construction of its 1,000 tpd Tahuehueto mine in Durango.
  • Silver Spruce Resources Inc., consolidated its common shares and proposed to complete a non-brokered private placement to raise up to $1.5M. The consolidation of its common shares is one new share for five old shares.
  • Golden Minerals Company, reported revenue of approximately $1.9M in Q3 2018 related to the oxide plant lease and costs of approximately $0.7M related to the services Golden provides under the terms of the lease, for a net margin of $1.2M. Other operating income of $3.2 million included $3.0 million from the sale of Golden’s remaining interest in the Celaya project in Guanajuato to The Electrum Group LLC, as well as pro‐rated income from the farm‐out of the Company’s Zacatecas properties to Santacruz Silver. Exploration expenses were $1.1 million in the third quarter, reflecting increased exploration and project evaluation activities at the Santa Maria project in Chihuahua as well as other projects in Mexico.

 

ON RESOURCES AND DEVELOPMENT

  • Kootenay Silver Inc., designed a program of 15,000m of drilling over 62 holes aimed to expand resources along the extensions of its La Cigarra deposit in Chihuahua. The drilling program will be conducted on four target areas where the company believes there is untested potential to increase resources. “The plan would entail primarily exploration step out drilling of known mineralization and some infill drilling of the successful La Borracha program earlier this year”. “The four areas Kootenay plans to target are the La Borracha high grade (the mineralized trend located 1,000 meters northwest from the northern boundary of the Resource), the La Borracha Connection (connecting La Borracha with the San Gregorio area of the Resource), Gap (a very under drilled area between the main San Gregorio and Las Carolinas zones that currently comprise the Resource) and the Carolinas Extension (the strike extension of the Resource to the southeast)”.
  • Hecla Mining Company, released in-fill drilling results for its San Sebastian mine in Durango. The in-fill drilling was conducted in the central portion of the polymetallic zone along the Francine Vein. Additionally, exploration core drilling was also conducted toward shallower oxide mineralization along the West and East Francine vein areas, the recently discovered South Vein, and at the Esperanza Vein target area. At the Francine vein, the in-fill drilling program intersected high grade mineralization. Highlights include 1.37m of 591 g/t Ag, 4.8% Cu, 16% Pb and 13.5% Zn and 2.25m of 227 g/t Ag, 1.8% Cu, 3.5% Pb, and 6% Zn. The drilling also intercepted narrow but high-grade mineralization along the East Francine vein on new zones of vein-hosted oxide mineralization. Significant intersections are 1.46m of 485 g/t Ag and 0.3 g/t Au, and 2.83m of 299 g/t Ag and 2.2 g/t Au. Mineralization in this area is defined over 1,200 feet along strike and 800 feet down-dip and this new zone could represent an important new source of oxide mineralization. At the West Francine vein, the drilling program encountered also narrow intervals of high grade. Highlights include 0.64m of 1,791 g/t Ag and 0.62 g/t Au. Mineralization in this area is open laterally and at depth. Follow-up, offset drilling is in progress. At the Esperanza vein, exploration drilling commenced but results are pending. Reconnaissance RC drilling discovered a new blind vein under soil cover in the Saladillo Valley. This new vein, referred as the South vein, intercepted significant mineralized intervals such as 2.83m of 392 g/t Ag and 2.5 g/t Au, 2.86m of 187 g/t Ag and 0.93 g/t Au, and 2.86m of 174 g/t Ag and 1.24 g/t Au. Drilling for the remainder of the year will continue to focus on expanding resources and evaluate near-surface oxide mineralization at the West Francine Vein, South Vein, and Esperanza Vein areas.

ON DEALS AND CORPORATE ISSUES

  • Capstone Mining Corp., announced management changes and made reduction of its organizational structure to improve financial and operating performance and save approximately $5M per year in corporate general and administrative expenses (Cozamin mine, Zacatecas).
  • Defiance Silver Corp., and ValOro Resources Inc., signed a definitive merger agreement dated on November 5, 2018. The ValOro shareholders will receive 0.71 common shares of Defiance for each share of ValOro held. “Upon completion of the Transaction, the combined company will have approximately 119 million common shares outstanding, of which former shareholders of Defiance will own approximately 87% and the former shareholders of ValOro will own approximately 13%” (San Acacio project, Zacatecas).
  • Golden Goliath Resources Ltd., announced that Desarrollos Mineros El Aguila S.A. de C.V., a wholly subsidiary of Fresnillo plc, exercised the option agreement on its Uruachic project in Chihuahua by making a final payment of US$2.3M. Golden Goliath still holds a royalty on the several optioned properties in the Uruachic mining district.
  • Golden Reign Resources and Marlin Gold Mining Ltd., completed business combination to form Mako Mining Corp. Prior to the closing of the arrangement, the companies completed the amendment to the Gold Purchase Agreement with Sailfish Royalty Corp., and the Marlin reorganization.

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, banded quartz texture in a hot spring epithermal system in Durango, Mexico.  Photo by Miguel A Heredia.

Highlights on the Fourth Week of October, 2018. Mining and Exploration News in Mexico

Stibiconite-Cervantite crystals

By Miguel A Heredia

During the 43th week of the year (October 22th to October 28th, 2018), at least 29 press releases were announced by companies working in Mexico, with seven communicating mining activities, seven reporting on resources and developments, five disclosing deals and corporate issues,  five announcing financing issues, and four informing on exploration results. ON MEXICO ISSUES, the 13th International Mining Congress Sonora 2018 was held in the city of Hermosillo, Sonora on October 23-26. ON EXPLORATION, In Sonora, Minera Alamos and Minaurum reported exploration results from theirs Santana and Alamos Silver projects respectively. In Chihuahua, Harvest Gold provided an update of the drilling program on its Cerro Cascaron project. In Zacatecas, Santacruz provided drill results from its Veta Grande project. ON MINING, Agnico, Excellon, Fresnillo, GoGold, Goldcorp, Hecla and New Gold reported Q3 2018 results from their Mexican operations. ON FINANCING, Consolidated Zinc raised $1.3M from its share purchase plan, and proposed to raise further $220K. Auxico announced that its common shares are already trading on the NEX Exchange Growth Market. Mexican Gold announced its intention to complete a non-brokered private placement of up to $3M.  Oroco Resource increased its previous private placement to rise now up to $750K. Gold Resource declared monthly dividend to shareholders. ON RESOURCES AND DEVELOPMENT, Almaden reported infill drilling results within the PFS pit from its Ixtaca project in Puebla. Goldcorp announced proven and probable mineral reserves for its Peñasquito mine in Zacatecas. Mexican Gold announced plans to update resources for its Las Minas project in Veracruz. Premier Gold commenced an underground drilling program at its Marianas/Mercedes mine in Sonora.  Pan American Silver discovered wide mineralized zones at its La Colorada mine in Zacatecas. Torex reported infill drilling results for its Media Luna project in Guerrero. Azure released drill results from its Oposura project in Sonora. ON DEALS AND CORPORATE ISSUES, Canasil signed a letter of intent providing for Pan American Silver to acquire Canasil´s interest in the Sandra-Escobar project in Durango. Prize Mining retained Link Media to provide communications and market awareness services (Manto Negro, Coahuila). Metalla provided an update on the royalty acquisition of the Santa Gertrudis project in Sonora from GoGold. New Gold announced management changes (Cerro San Pedro, San Luis Potosi). Odyssey provided an update on legal filing for its Don Diego phosphate project in Baja California Sur.

ON MEXICO ISSUES

  • The 13th International Mining Congress Sonora 2018, was held in Hermosillo, Sonora on October 23-26. Sonora is the top state for mining in all Mexico.

 ON EXPLORATION

  • Minera Alamos Inc., reported drill results of a new broad zone of Au-Ag mineralization from its Santana project in Sonora. Hole S18-121 intersected 95.7m of 0.85 g/t Au, 10 g/t Ag, and 0.33% Cu (1.47 g/t Au Eq), including 70m of 1.1 g/t Au, 12 g/t Ag, and 0.56% Cu (1.88 g/t Au Eq). “The hole is the first drilled deep enough to intersect this new style of polymetallic mineralization that is associated with an andesite porphyry unit related to disseminated pyrite and intrusive breccias. Based on surface exposures and known geology the mineralized system appears to be open to expansion in all directions”.
  • Minaurum Gold Inc., released sampling results from the newly discovered Europa Sur Vein extension at its Alamo Silver project in Sonora. Significant results are 0.33 g/t Au, 1,205 g/t Ag, 1.9% Pb, 1.4% Zn, and 3.2 % Cu; 0.8m of 479 g/t Ag, 0.3% Pb, 0.5% Zn, and 3.19% Cu, and 2m of 0.15 g/t Au, 179 g/t Ag, 1.9% Pb, 1.3% Zn, and 2.51% Cu. “With this newly discovered extension, the Europa-Guadalupe vein now measures 2.5 km in strike length and further expands the scope of Minaurum’s exploration program to find extensions of all other currently identified veins”.
  • Harvest Gold Corporation, provided an update of the ongoing drilling program on its Cerro Cascaron Au-Ag project in Chihuahua. At Cascarita Silver target the drilling program is ongoing and currently focused on completing 600m in three holes. Once this target is drill tested, the crew will move to the Cascaron Vein Gold Field to drill three holes to test 900m of strike along the Serpiente Dorada and Julieta structures, and one hole to test beneath a high-grade Au-Ag surface samples across the Carabina vein.
  • Santacruz Silver Mining Ltd., announced drilling results from its Veta Grande project in Zacatecas and expanded the high-grade footprint. Highlights results are in Hole NA 18-006 with 2.15m (TW 1.95m) of 0.17 g/t Au, 669 g/t Ag, and 0.12% Cu, including 0.9m (TW 0.82m) of 29 g/t Au, 1,220 g/t Ag, and 0.12% Cu;

ON MINING

  • Agnico Eagle Mines Ltd., released Q3 2018 production results from its Mexican Operations. At Pinos Altos, Chihuahua, Agnico processed 508,000 tonnes of 2.96 g/t Au to produce 46.4K Oz Au. At Creston Mascota, Chihuahua, the company processed 309,000 tonnes of 0.84 g/t Au to produce 8K Oz Au. At La India, Sonora, Agnico processed 1,426,000 tonnes of 0.79 g/t Au to produce 27K Oz Au.
  • Excellon Resources Inc., reported Q3 2018 production results from its La Platosa mine in Durango. In this period, Excellon milled 17,907 tonnes of 416 g/t Ag, 3.5% Pb, and 4.3% Zn to produce 171.2K Oz Ag, 0.8M Lb Pb, and 1M Lb Zn with metallurgical recoveries of 89.9%, 74.2%, and 78.2% respectively.
  • Fresnillo plc., announced Q3 2018 production results from their Mexican operations. At Fresnillo mine, Zacatecas, the company processed 613,794 tonnes of 0.68% Au, 211 g/t Ag, 0.9% Pb, and 1.8% Zn to produce 10.5K Oz Au, 3.7M Oz Ag, 11M Lb Pb, and 18.1M Lb Zn. At Saucito mine, Zacatecas, 713,441 tonnes were processed at grades of 1.34 g/t Au, 250 g/t Ag, 0.9% Pb, and 1.6% Zn to produce 23.6K Oz Au, 4.9M Oz Ag, 12.9M Lb Pb, and 17.7M Lb Zn. At the Pyrites Plant, Fresnillo processed 63,336 tonnes of 2.9g /t Au and 423 g/t Ag to produce 1.4K Oz Au and 423K Oz Ag. At La Cienega mine, Durango, the company processed 332,493 tonnes of 1.79 g/t Au, 169 g/t Ag, 0.6% Pb, and 0.9% Zn to produce 18.2K Oz Au, 1.54M Oz Ag, 2.47M Lb Pb, and 4.2M Lb Zn. At San Julian mine, Chihuahua, 332,836 tonnes were processed from the vein system with grades of 1.84 g/t Au and 137 g/t Ag to produce 18.5K Oz Au and 1.35M Oz Ag while 561,808 tonnes were processed from San Julian JM disseminated ore body with grades of 0.11 g/t Au, 156 g/t Ag, 0.4% Pb, and 1.3% Zn to produce 9994 Oz Au, 2.3M Oz Ag, 2.8M Lb Pb, and 11.3M Lb Zn. At Herradura mine, Sonora, 5,859,579 tonnes were processed with grades of 0.76 g/t Au and 3 g/t Ag to produce 109.6 Oz Au and 492K Oz Ag. At Noche Buena mine, Sonora, Fresnillo processed 4,834,512 tonnes of 0.52 g/t Au to produce 42.5K Oz Au.
  • GoGold Resources Inc., presented Q3 2018 production results from its Parral tailings operation in Chihuahua. GoGold produced 105.6K Oz Ag and 1,665 Oz Au.
  • Goldcorp Inc., produced a total of 503K Oz Au during Q3 2018 from their mine operations. Goldcorp did not present separate production results by mines.
  • Hecla Mining Company, produced in Q3 2018 over 3.7K Oz Au and 0.5M Oz Ag from its San Sebastian mine in Durango.
  • New Gold Inc., reported Q3 2018 production results from its Cerro San Pedro operation in San Luis Potosi. New Gold produced 2K Oz Au and 0.1M Oz Ag from residual leaching.

ON FINANCING

  •  Consolidated Zinc Limited, closed its share purchase plan on October 22, 2018, raising a total of $1.3M. The company also proposed to conduct a placement to raise a further $220K (Plomosas mine, Chihuahua).
  • Auxico Resources Canada Inc., announced that its common shares are already trading on the NEX Exchange Growth Market in London. (Zamora Mining District, Sinaloa).
  • Mexican Gold Corp., notified its intention to complete a non-brokered private placement of up to $3M, the same that could be increased by up to 25% for aggregate gross proceeds of up to $3.75M. (Las Minas, Veracruz).
  • Oroco Resource Corp., announced that it has increased its previous private placement to raise net gross proceeds of up to $750K (Santo Tomas, Sinaloa).
  • Gold Resource Corporation, declared monthly dividend of 1/6 of a cent for common share to shareholders (El Aguila mine, Oaxaca).

 

ON RESOURCES AND DEVELOPMENT

  • Almaden Minerals Ltd., reported infill drilling results from its Ixtaca project in Puebla. The results are part of the PFS filed work program within the resource and mine plan area. Significant intersections are in Hole TU-18-543 with 127.40m of 1.15 g/t Au and 18 g/t Ag, including 34.50m of 2.08 g/t Au and 47 g/t Ag; Hole TU-18-544 with 145.50m of 1.83 g/t Au and 14 g/t Ag, including 40m of 4 g/t Au and 35 g/t Ag, including 5.10m of 11.6 g/t Au and 87 g/t Ag; Hole TU-18-548 with 139.08m of 1.58 g/t Au and 17 g/t Ag, including 60.58m of 2.75 g/t Au and 23 g/t Ag, including 28.50m of 4.33 g/t Au and 34 g/t Ag; and Hole TU-18-550 with 131.50m of 1.51 g/t Au and 49 g/t Ag, including 21m of 7.5 g/t Au and 57 g/t Ag, including 9.70m of 15.18 g/t Au and 104 g/t Ag, and including 11.50m of 1.07 g/t Au and 89 g/t Ag.
  • Goldcorp Inc., presented reserves and resource estimates as of June 30, 2018 for its Peñasquito mine in Zacatecas. Proven reserves are 376.43 M tonnes of 0.58 g/t Au, 35 g/t Ag, 0.3% Pb, and 0.8% Zn for a total of 6.97M Oz Au, 418.3M Oz Ag, 2,804M Lb Pb, and 6,314M Lb Zn. Probable reserves are 143.99M tonnes of 0.46 g/t Au, 24 g/t Ag, 0.3% Pb, and 0.5% Zn for a total of 2.15M Oz Au, 109.3M Oz Ag, 809.6M Lb Pb, and 1,680.3M Lb Zn. Proven + Probable reserves are 520.41M tonnes of 0.55 g/t Au, 32 g/t Ag, 0.3% Pb, and 0.7% Zn for a total of 9.1M Oz Au, 527.6M Oz Ag, 3,613.2M Lb Pb, and 7,994.5M Lb Zn. Measured resources are 94.03M tonnes of 0.25 g/t Au, 28 g/t Ag, 0.3% Pb, and 0.6% Zn for a total of 0.76M Oz Au, 85.6M Oz Ag, 579.6M Lb Pb, and 1,161.2M Lb Zn. Indicated resources are 104.77M tonnes of 0.24 g/t Au, 12 g/t Ag, 0.3% Pb, and 0.5% Zn for a total of 0.81M Oz Au, 76.7M Oz Ag, 610M Lb Pb, and 1,044.2M Lb Zn. Measured + Indicated resources are 198.8M tonnes of 0.25 g/t Au, 25 g/t Ag, 0.3% Pb, and 0.5% Zn for a total content of 1.57M Oz Au, 162.3M Oz Ag, 1,189.6M Lb Pb, and 2,205.4M Lb Zn. In addition, inferred resources are 14.88m tonnes of 0.3 g/t Au, 13 g/t Ag, 0.2% Pb, and 0.6% Zn for a total of 0.14M Oz Au, 6.4M Oz Ag, 54.1M Lb Pb, and 206.6M Lb Zn (Mineral resources are exclusive of mineral reserves).
  • Mexican Gold Corp., announced plans to update mineral resources for its Las Minas project in Veracruz. It also announced plans to conduct 3,000m of drilling to update and expand its open pit modeled mineral resource at the El Dorado/Juan Bran and Santa Cruz zones.
  • Premier Gold Mines Limited, commenced an underground drilling program at its Marianas/Mercedes mine in Sonora, where previous drill results suggest to have the potential to contain economic mineralization of higher than the current reserve grades. The goal is to convert the Marianas mineral resources to mineral reserves. If the results are positive, mining at Marianas could begin in H2 2019.
  • Pan American Silver Corp, discovered wide mineralized zones in limestone replacement mantos and thick intercepts of skarn below the current production levels at its la Colorada mine in Zacatecas. Drill highlights are in Hole U-39-18 with 223m of 69 g/t Ag, 1.9%Pb, and 3.4% Zn, including 32m of 227 g/t Ag; Hole U-30-18 with 71.6m of 54 g/t Ag, 2% Pb, and 5% Zn; Hole U-28-18 with 60.3m of 76 g/t Ag, 4.3% Pb, and 3.7% Zn; Hole U-32-18 with 46.3m of 54 g/t Ag, 2.3% Pb, and 4.4% Zn; Hole U-26-18 with 42.6m of 42 g/t Ag, 2.8% Pb, and 7% Zn, and other interval of 42m of 52 g/t Ag, 1.8% Pb, and 3.9% Zn; and Hole U-29-18 with 7.4m of 80 g/t Ag, 5.3% Pb, and 13.6% Zn, and other interval of 23.4m of 54 g/t Ag, 2.3% Pb, and 8.2% Zn. “These are extraordinary exploration results for our La Colorada mine, indicating the potential to substantially expand mineral resources, mine life and ultimately production capacity,”
  • Torex Gold Resources Inc., reported infill drilling results for its Media Luna project in Guerrero. Highlights intercepts include Hole ML 18-222A with 39.15m of 5.24 g/t Au, 93 g/t Ag, and 2.27% Cu (10.54 g/t Au Eq); Hole ML 18-215 with 49.63m of 4.8 g/t Au, 36 g/t Ag, and 0.97% Cu (7.0 g/t Au Eq); Hole ML 18-219W with 45.9m of 3.44 g/t Au, 59 g/t Ag, and 1.64% Cu (7.1 g/t Au Eq); and Hole ML 18-208W with 22.62m of 3.33 g/t Au, 87 g/t Ag, and 2.12% Cu (8.27 g/t Au Eq) (Intersections are reported as true thickness).
  • Azure Minerals Limited, released drill results from its Oposura project in Sonora. Significant intersections in the middle of the Central Zone are in Hole OPDH-173 with 12.05m of 23 g/t Ag, 1.7% Pb and 6% Zn, including 4.1m of 43 g/t Ag, 2% Pb and 10.5% Zn; and Hole OPDH-178 with 9.50m of 22 g/t Ag, 3.7% Pb, and 15.1 % Zn, including 6.15m of 31 g/t Ag, 4.7% Pb, and 22% Zn. Significant intersections in the East Zone into the Central Zone are in Hole OPDH-159 with 5m of 14 g/t Ag, 4% Pb, and 5.2% Zn and 6.15m of 97 g/t Ag, 2.3% Pb, and 13.4% Zn; Hole OPDH-171 with 4.4m of 294 g/t Ag, 5.6% Pb, and 14.8% Zn, including 3.6m of 353 g/t Ag, 6.6% Pb, and 17.7% Zn; and Hole OPDH-177 with 4.55m of 138 g/t Ag, 6.1% Pb, and 30.8% Zn, including 3.4m of 177 g/t Ag, 8% Pb, and 40.1% Zn. “These latest, high-grade, massive sulphide drill intersections from the sparsely drilled Central Zone confirm that this area has the potential to significantly increase Oposura’s resource base”. “They continue to build on the very positive results from the Oposura Scoping Study and confirm potential to extend the mine life and further improve the already impressive project economics.”

ON DEALS AND CORPORATE ISSUES

  • Canasil Resources Inc., signed a letter of intent providing for Pan American Silver to acquire Canasil´s interest in the Sandra-Escobar project in Durango. The non-binding LOI is to enter in a definitive agreement for a payment of CAD $2.0M and 2% NSR. The NSR royalty can be reduced by Pan American Silver to 1% at any time by paying CAD $4.0M.
  • Prize Mining Corporation, retained Link Media to provide communications and market awareness services (Manto Negro, Coahuila).
  • Metalla Royalty & Streaming Ltd., announced that it is proceeding to close the acquisition of the 2% NSR on the Santa Gertrudis project in Sonora from GoGold Resources Inc.
  • New Gold Inc., announced management changes (Cerro San Pedro, San Luis Potosi).
  • Odyssey Marine Exploration Inc., filed an action before the Superior Section of the Mexican Federal Administrative Court due to the SEMARNAT´s recent refusal to issue the environmental permit for its San Diego phosphate project in Baja California Sur.

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, stibiconite-cervantite crystals in an epithermal system in Durango, Mexico.  Photo by Miguel A Heredia.

Highlights on the Third Week of October, 2018. Mining and Exploration News in Mexico

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By Jorge Cirett

During the 42nd week of the year (October 15th to October 21st, 2018), at least 31 press releases were announced by companies working in Mexico. San Marco and Odyssey released advances in exploration. Galore Resources and Aura Minerals released news on mining, while Avino Silver, First Majestic, Premier Gold and Gold Resource reported Q3 production results. Sonoro Metals, First Majestic, Azucar Minerals and Plata Latina reported news related to financing. Telson, Azure, Candelaria and Goldplay reported on advances on its properties. Santacruz, Prize Mining, Azucar Minerals, Alio Gold, Canuc Resources, Minera Alamos and Excellon presented information on deals or corporate issues. ON MEXICO ISSUES, CAMIMEX stated there are 19 ongoing projects to augment gold production in Mexico. ON EXPLORATION, In Baja California Sur, Odyssey informed on SEMARNAT’s refusal for permitting the Don Diego project. In Sonora, San Marco is to start mapping and sampling the Espiritu project. In Coahuila, Prize Mining continues drilling at its Manto Negro project. ON MINING, Avino Silver, First Majestic, Premier Gold, and Gold Resource reported on Q3 2018 production. Galore begun mining at Los Gemelos, Zacatecas. Aura Minerals completed the first copper concentrate shipment from Aranzazu, also in Zacatecas. ON FINANCING, Sonoro is undertaking a private placement to raise up to $500 K. First Majestic filed a shelf prospectus that enables the raising of up to US$300 M in 25 months. Newcrest is exercising its top up rights to maintain 19.9% ownership of Azucar Minerals. Plata Latina settled C$231 K of indebtedness by share issuing. ON RESOURCES AND DEVELOPMENT, Telson released high grade results from development sampling at Tahuehueto, Durango. Azure Minerals announced a positive scoping study on its Oposura project in Sonora. Candelaria Mining filed a NI-43-101 report on its Pinos project in Zacatecas. Goldplay was approved the drilling permit by SEMARNAT for drilling at its San Marcial project in Sinaloa. Azure Minerals released a positive scoping study on its Oposura project in Sonora, for an open pit/underground operation. Newcrest is to maintain its 19.9% ownership of Azucar Minerals (see above).  Minera Alamos reported second round drill results on its Santana property in Sonora. ON DEALS AND CORPORATE ISSUES, Santacruz Silver made the final payment to acquire a considerable land package in the Zacatecas district. Newcrest is to maintain its participation in Azucar Minerals. Canuc received conditional approval for its acquisition of Circle Energy. Alio Gold is disposing of some assets in Nevada and reducing its debt levels. Excellon is to sell the Beschefer project in Canada.

ON MEXICO ISSUES

  • According to CAMIMEX (Cámara Minera de México) there are 19 investment projects to be developed during the 2018-2019 period, five in Durango (Camino Rojo, Piritas in Peñasquito, El Compás, Fresnillo’s Piritas project and Juanicipio), four in Guerrero (Ana Paula, Bermejal underground, Media Luna, and Rey de Plata), four in Durango (Tahuehueto, Pitarrilla, Metates and San Agustin), Two in Sonora (Santa Gertrudis and a second leach plant at La Herradura), one in Puebla (Ixtaca) and one in Chihuahua (San Julian). Gold production in 2017 was 4,080,000 ounces, decreasing by 4% on the prior year, but considerably larger than the 848,000 ounces produced in year 2000.

ON EXPLORATION

  • San Marco Resources Inc. is to start exploration at its Espiritu porphyry copper project in Sonora. Work in the property will consist of geological mapping, surface rock sampling and assessment of past drill hole and surface data. San Marco’s first pass review suggest the system is open in most directions. Past drill hole intercepts include 48.0 m @ 0.19 g/t Au, 0.10 % Cu and 220.5 m @ 0.14 g/t Au, 0.15% Cu.
  • Odyssey Marine Exploration Inc. received notification that SEMARNAT repeated their refusal to issue an environmental permit for the phosphate deposit, “in direct contravention of the Order of the Federal Administrative Court”. SEMARNAT did not inform of any new environmental information used as a basis their decision, as was required in the Court’s Order. Odyssey “expects its legal team to file a new action before the Superior Section of the Federal Administrative Court demonstrating that SEMARNAT is in contempt of the Court’s Order with a request for sanctions and notification to Mexico’s Internal Control Unit” (Don Diego, Baja California Sur).
  • Prize Mining Corp. continues with the 30-hole 3,000 m drill program at its Manto Negro project in Coahuila. “Core is being logged and sampled and sent out for assay, with first results expected in November”.

ON MINING

  • Avino Silver & Gold Mines Ltd. announced its third quarter production results for 2018. In the Avino mine. during the period 81.5 K dry tonnes were milled @ 58 g/t Ag, 0.52 g/t Au, 0.54% Cu; with 84% Ag, 67% Au, 88% Cu recoveries to produce 112.6 K Oz Ag, 882 Oz Au, 865 K Lb Cu (or 3,935 Kg Ag, 28.31 Kg Au, 392.36 Tonnes Cu). In the San Gonzalo mine (which is nearing the end of its mine life) 19.7 K dry tonnes were milled @ 226 g/t Ag, 1.15 g/t Au; with 78% Ag, 75% Au to produce 107.8 K Oz Ag, 532 Oz Au (or 3,461 Kg Ag, 17,086 g Au). From the above ground stockpile 88.7 K tonnes were milled @ 62 g/t Ag, 0.45 g/t Au, 0.15% Cu; with 57% Ag, 52% Au, 37% Cu recoveries, to produce 97.4 K Oz Ag, 652 Oz Au, 112.8 K Lb Cu (or 3,127 Kg Ag, 20,931 g Au). An additional 8,212 Oz Ag were produced by a test program to recover precious metals and zinc from the San Gonzalo mine tailings. To counter significantly lower metal prices, Avino is reducing costs by postponing exploration, as well as reducing general and administrative costs in Mexico and British Columbia.
  • First Majestic Silver Corp. announced production results for Q3 2018. Consolidated results include the milling of 864 K tonnes of ore to produce 3.5 M Oz Ag, 35,260 Oz Au, 4.44 M Lb Pb, 1.23 M Lb Zn (or 6.74 M Oz AgEq). A 20% cost reduction program across all areas is being implemented to deal with the prolonged low silver prices. AgEq year on year production grew by 69%, mainly by the addition of the San Dimas operations. The mine by mine production table is below.

firstmajestic_2018-10-151 - copia.jpg

  • Galore Resources Inc. Has begun mining at Los Gemelos, in Zacatecas. Mining has begun without a feasibility study at Galore’s owned Duraznillo ranch, which includes the Los Gemelos and Duende 7 claims, within the Concepción del Oro district. The mining contractor has installed a gold processing plant with initial capacity of 90 tons per week. The proceeds, net of costs, are to be allocated with 40% to Galore and 60% to the contractor, URBYASA.
  • Aura Minerals Inc. completed the first shipment of copper concentrate since the reopening of its Aranzau mine in Zacatecas. Aura “continues to further progress on the underground mine development and operational improvements to the plant. Construction of the new tailings disposal system (TD5) is expected to be completed this year”.
  • Premier Gold Mines Ltd. released Q3 2018 production results, including figures from its Mercedes mine in Sonora, where 17,465 Oz Au; 88,390 Oz Ag were produced. “The Mercedes Mine remains focused on cost reduction and the development of new deposits to increase flexibility and productivity……. construction to expand tailings capacity began. Additionally, development continued on a drift from the Lagunas mine to access the higher-grade Marianas deposit located along the main Mercedes mine trend”.
  • Gold Resource Corp. reported preliminary production results for the third quarter 2018. During the period production totaled 434 tonnes Cu, 2,119 tonnes Pb, 4,970 tonnes Zn, and no details were disclosed on precious metals. For the first three quarters of 2018, 18,864 Oz Au, 1.34 M Oz Ag, 1,206 tonnes Cu, 5,274 tonnes Pb, 14,236 tonnes Zn were produced.

ON FINANCING

  • Sonoro Metals Corp. proposes to undertake a non-brokered private placement, aiming to raise up to $500K (Cerro Caliche, Sonora).
  • First Majestic Silver Corp. filed a preliminary short form base shelf prospectus that will allow First Majestic to raise up to US$300 M during the next 25 months (Six producing mines in Mexico).
  • Azucar Minerals Ltd. announced Newcrest Canada Holdings Inc. exercised its top-up rights pursuant to the May 2018 investor rights agreement with Azucar, acquiring additional shares for a total of $124.4 K, and maintaining its 19.9% ownership.
  • Plata Latina Minerals Corp. has agreed to settle indebtedness of C$201 K owing to its directors and indebtedness of C$30 K owing to its former CEO, by issuing common shares.

ON RESOURCES AND DEVELOPMENT

  • Telson Mining Corp. reported assay results from veins exposed during underground development at its Tahuehueto mine in Durango. Highlighted results comprise 3.25 m @ 7.10 g/t Au, 37 g/t Ag, 0.22% Cu, 0.9% Pb, 5.4% Zn; 6.10 m @ 5.04 g/t Au, 36 g/t Ag, 0.16% Cu, 1.8% Pb, 3.9% Zn; 8.05 m @ 2.52 g/t Au, 28 g/t Ag, 0.19% Cu, 0.8% Pb, 2.9% Zn; 4.20 m @ 8.02 g/t Au, 96 g/t Ag, 2.93% Cu, 5.0% Pb, 8.2% Zn; 4.40 m @ 2.62 g/t Au, 19 g/t Ag, 1.3% Cu, 3.8% Pb, 3.7% Zn.
  • Candelaria Mining Corp. filed a NI-43-01 preliminary feasibility assessment (PEA) report on its Pinos project, Zacatecas. The resources stand at: 85,847 tonnes @1.6 g/t Au, 83 g/t Ag measured; 175.7 K tonnes @ 3.6 g/t Au, 47 g/t Ag indicated; 529.6 K tonnes @ 3.6 g/t Au, 48 g/t Ag as inferred. The measured resources are in dumps, whereas the indicated and inferred resources are contained in veins 1.3 to 2.1 m in average widths. Production costs were evaluated for a range of 200 to 400 tonnes per day (tpd) operation. The capital cost is estimated at $13.5 M and the sustaining capital at $9.15 M.
  • Goldplay Exploration Ltd. received approval from SEMARNAT (Mexican environmental agency) for its upcoming drill programs at San Marcial, Sinaloa. Up to 69 drill holes can be completed within a two year window. A NI-43-101 resource estimate is to be completed before the end of 2018., and a PEA is expected to be undertaken in 2019.
  • Azure Minerals Ltd. announced a positive scoping study (SS) completed at its Oposura project in Sonora. “The Study delivers a Life of Mine (LOM) EBITDA of A$237 million, NPV(8%) (pre-tax) of A$112 million and an IRR (pre-tax) of 76%….. ”. The study calls for mining by open pit and underground methods 2.5 M tonnes @ 4.6% Zn, 2.6% Pb, 15.9 g/t Ag. The initial mine life is 5.3 years, with average annual production of 19 Kt Zn, 10 Kt Pb, 145 K Oz Ag. The total capital expenditure needed to achieve production is A$ 69.9 M (US$ 52.4 M).
  • Minera Alamos Inc. reported results on the second round of its phase 1 drilling program at its Santana property in Sonora. Highlighted results comprise 80.4 m @ 1.05 g/t Au; and 8.0 m @ 1.0 g/t Au and 24.5 m @ 0.81 g/t Au on a second hole. “Planning of the Phase 2 drill program will begin once the remaining drilling results have been received and interpreted”.

ON DEALS AND CORPORATE ISSUES

  • Santacruz Silver Mining Ltd. has made the final option payment to acquire 149 concessions covering 7,800 ha in the Zacatecas district. Santacruz now controls 8,900 ha in the district.
  • Azucar Minerals Ltd. informed Newcrest Canada Holdings Inc. has confirmed its intention to exercise its top-up rights on their last May signed agreement. Under the scheme, Newcrest is to maintain its 19.9% ownership of Azucar (El Cobre, Veracruz).
  • Alio Gold Inc. entered into a definitive agreement to sell the Lincoln Hill, Wilco and Gold Ridge projects in Nevada to Coeur Mining Inc.. Alio is to receive $19 M upon the closing of the transaction. Recently, Alio has also reduced its outstanding debt with Macquarie Bank Ltd. from $15 million in past June, to $5 million now. The Company expects to fully extinguish the MBL debt during the fourth quarter. Alio also settled a $5 M contingent liability that the Company acquired with its acquisition of Rye Patch Gold Corp. and the Florida Canyon Mine earlier this year. The Company has also updated its surety bond for the Florida Canyon Mine in Nevada, releasing an additional $5.1 million in cash (San Francisco, Sonora).
  • Canuc Resources Corp. received conditional approval from the TSX Venture Exchange for the previously announced acquisition of Circle Energy Ltd., a company with six oil prospective sections in Saskatchewan (San Javier, Sonora).
  • Excellon Resources Inc. entered into an option agreement with Wallbridge Mining Co. to sell the Beschefer project in Canada (Platosa, Durango).

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

On the image above, epidote veinlet with feld-K halo in andesitic volcanic rocks in a porphyry-Cu prospect in Jalisco. Picture by Jorge Cirett.

Highlights on the Fourth Week of August, 2018. Mining and Exploration News in Mexico

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By Jorge Cirett

During the 34th week of the year (August 20th to August 26th, 2018), at least 17 press releases were announced by companies working in Mexico. Aztec Minerals, Discovery Metals, and SilverCrest Metals released advances in exploration. Grupo Mexico and Santacruz Silver Mining released its Q2 2018 results. SilverCrest Metals, Silver Bull, Avino Silver and Prize Mining reported news on financing. Azure Minerals reported advances on the PEA and new drilling of one of its projects. ON MEXICO ISSUES, The Mexican Core Shack now counts with displays from three properties in Chihuahua, two in Durango and two in Estado de Mexico. ON EXPLORATION, In Sonora, Aztec Minerals released results from surface sampling along drill roads on its Cervantes project. In Coahuila, Discovery Metals released results from underground sampling at its Puerto Rico project.   ON MINING Grupo Mexico and Santacruz Silver released its Q2 2018 reports. Grupo Mexico is to re-open its San Martin mine in Zacatecas.  ON FINANCING, Silver Bull and Prize Mining closed final tranches of financing for gross proceeds of US$3.79 M and $7.62 M respectively. ON RESOURCES AND DEVELOPMENT, Azure Minerals is advancing the PEA on its Oposura property in Sonora, and announcing a new drilling campaign. SilverCrest released more drilling results from its Las Chispas project in Sonora. ON DEALS AND CORPORATE ISSUES, Alio Gold announced several changes in senior management, as well as at its corporate head office in Vancouver, related to the recent focus on its operating mines.

ON MEXICO ISSUES

ON EXPLORATION

  • Aztec Minerals Corp. released surface sampling results from the California prospect within its Cervantes project in Sonora. The rock chip channel samples were collected along drill roads, returning 75 m @ 0.11 g/t Au; 222 m @ 0.47 g/t Au; 84 m @ 0.40 g/t Au; 183 m @ 0.32 g/t Au; 81 m @ 0.53 g/t Au; 33 m @ 0.26 g/t Au; 111 m @ 0.02 g/t Au. Aztec’s CAD$182 K phase 2 exploration program “of geological mapping, rock, soil and sediment sampling and airborne magnetic and radiometric surveys is focused on better defining additional drill targets” on the 3,649 hectares property. Soil surveys highlight strong gold anomalies at the California north, Purisima East, Purisima West and Jacob soil grids, with individual samples returning up to 3.3 g/t Au. The Cervantes property is held under an option to purchase agreement with Kootenay Silver Inc.
  • Discovery Metals Corp. reported the second batch of underground channel sampling results from the San Jose mine at its Puerto Rico project in Coahuila. “San Jose contains approximately 630m of underground drifts and stopes over four levels (from bottom to top: the Chuyon, Haulage, Rope and Upper levels) that span an approximate vertical extent of 50m and cover a horizontal extent of approximately 80m by 80m. All four levels host strongly mineralized mantos, chimneys and faults. Channel samples were collected at 3-5m intervals along both sides of the entire length of the developed workings”. Individual samples are as high as 1.2 m @ 10 g/t Ag, 46.2% Zn, 0.2% Pb, 0.2% Cu; 0.7 m @ 154 g/t Ag, 38.2% Zn, 0.6% Pb, 0.1% Cu; 1.0 m @ 18 g/t Ag, 30.2% Zn, 0.1% Pb, 2.6% Cu; 1.0 m @ 445 g/t Ag, 3.5% Zn, 26.3% Pb, 0.6% Cu.discoverymetals_nr-2018-08-2311

ON MINING

  • Santacruz Silver Mining Ltd. reported operating results from the Veta Grande project in Zacatecas and the Rosario project in San Luis Potosi, for the second quarter 2018. At Veta Grande, 52 K tonnes @ 70 g/t Ag, 0.17 g/t Au, 1.14% Zn, 0.41% Pb (161 g/t AgEq) were processed, with a 45% Ag recovery, to produce 36.7 K Oz Ag, 59 Oz Au, 111 tonnes Pb, 164 tonnes Zn. At Rosario, 15.4 K tonnes @ 44 g/t Ag, 0.26 g/t Au, 2.54% Zn, 0.23% Pb (212 g/t AgEq) were processed, with 89% Ag recovery, to produce 19.4 K Oz Ag, 84 Oz Au, 31 tonnes Pb, 344 tonnes Zn.
  • Grupo México is to reopen its San Martin mine in Zacatecas, with an investment of US$77 M. The mine was closed eleven years ago due to a labor dispute with the Sindicato Nacional de Trabajadores Mineros, led by Napoleon Gomez Urrutia. The mine workers have now changed to the Sindicato Nacional de Trabajadores de la Exploración, Explotación y Beneficio en Minas de la República Mexicana, ending the closure by strike of the mine. The mine is to have a 32 years life span, creating directly 600 jobs and indirectly 3,000 more.
  • Grupo México reported its second quarter 2018 results. During the period sales increased 19%, while the EBITDA rose to US$1,316 M, and capital investments rose to US$434 M.

ON FINANCING

  • SilverCrest Metals Inc. has been approved to list its common shares on the New York Stock Exchange (Las Chispas, Sonora).
  • Silver Bull Resources Inc. completed the second and final tranche of its previously announced private placement, for aggregate gross proceeds of USD$957.5 K. Under the first tranche of the private placement Silver Bull accrued USD$2.831 M (Sierra Mojada, Coahuila).
  • Avino Silver & Gold Mines Ltd- filed a shelf registration statement on Form F-3 with the Securities and Exchange Commission (SEC), that is to allow the company to raise up to US$25 M (Avino, Durango).
  • Prize Mining Corp. closed the third and final tranche of the recently announced non-brokered private placement, raising $500 K and taking the total aggregate of gross proceeds to $7.62 M (Manto Negro, Coahuila).

ON RESOURCES AND DEVELOPMENT

  • Azure Minerals Ltd. announced that the preliminary economic assessment (PEA) on its Oposura project in Sonora remains on track to be reported in the third quarter of 2018. The study envisions open pit and room and pillar underground extraction. The resource includes 2.1 Mt (tonnes) @5.3% Zn, 2.9% Pb, 17.2 g/t Ag in the indicated category and 0.8 Mt @ 4.3% Zn, 2.5% Pb, 16.5 g/t Ag in the inferred category.
  • SilverCrest Metals Inc. announced new drill results from the Granaditas vein and the new Granaditas Dos vein at its Las Chispas property in Sonora. These veins are approximately 40 m apart and may intersect to the southeast. Highlighted true width (TW) intercepts include 1.2 m @ 5.6 g/t Au, 15 g/t Ag; 1.3 m @ 4.2 g/t Au, 229 g/t Ag; 1.2 m @ 3.10 g/t Au, 4.0 g/t Ag in the Granaditas vein, 0.5 m @ 1.8 g/t Au, 149 g/t Ag; 0.4 m @ 2.4 g/t Au, 421 g/t Ag; 2.9 m @ 294 g/t Ag; 1.2 m @ 1.2 g/t Au, 162 g/t Ag in the Granaditas Dos vein and 0.9 m @ 1.0 g/t Au, 82 g/t Ag; 1.4 m @ 2.5 g/t Au, 799 g/t Ag in an unnamed vein. The high-grade footprint in the Granaditas Vein currently measures approximately 200 m long by 200 m high and is open in most directions. The high-grade footprint in the Granaditas Dos (2) Vein currently measures approximately 100 m long by 100 m high and is open in most directions.
  • Azure Minerals Ltd. recommenced drilling at its Oposura project in Sonora. This campaign is focused on infill drilling and more widely spaced resource extensional drilling.

ON DEALS AND CORPORATE ISSUES

  • Alio Gold Inc. announced changes related to the recent focus on its operating mines San Francisco in Sonora and Florida Canyon in Nevada, which include the previously announced temporary suspension of exploration and development at its Ana Paula project in Guerrero, and the here stated termination of the Vice-president of project development Project Manager and the Chief Executive Officer. “The Company has also taken steps to reduce costs at the Ana Paula project site in Mexico while maintaining a level of local employment and community engagement…..the Company has also implemented a number of changes at its corporate office in Vancouver which in total are expected to reduce the corporate overhead by approximately $1.2 million over the next 12 months.“
  • Defiance Silver Corp. renegotiated and extended the terms of its San Acacio Project option agreement. “The project vendor has agreed to postpone a substantial amount of the payments due in 2018 to September 27, 2020. As a result, Defiance will be making four quarterly payments of US$226,900 totaling US$907,600 in year one and four quarterly payments of US$250,000 totaling US$1,000,000 in year two with the final option payment due September 2020.”

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, the silicified and alunite bearing ridge beyond the farming fields is interpreted as the water table interface in a shallow epithermal system, in Guanajuato. Picture by Jorge Cirett.

Highlights on the Second Week of August, 2018. Mining and Exploration News in Mexico

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By Jorge Cirett

During the 32nd week of the year (August 6th to August 12th, 2018), at least 16 press releases were announced by companies working in Mexico. Sable, Oroco, Millrock and One World Lithium updated on exploration advances. Hecla, Torex, Golden Minerals, Argonaut, Alio and Odyssey Marine Exploration released Q2 2018 reports. HarvestGold closed the final tranche of a financing round. Hecla, Alio and Consolidated Zinc reported advances on the development or exploration of their resource base. Three companies announced deals on projects, or company mergers. ON MEXICO ISSUES, The Mexican Core Shack now counts with displays from three properties in Chihuahua and two in Durango. The newly elected president of Mexico seems to have mining development as one of its 25 key projects. ON EXPLORATION, In Sonora, Millrock reported drill results from its Navidad project. In Chihuahua, Sable Resources released wide, high-grade silver intercepts from its Margarita property. In Sinaloa, Oroco received the title for a concession on the Santo Tomás district. In Baja California, One World Lithium is preparing to drill its Salar del Diablo project.   ON MINING Hecla, Torex gold, Golden Minerals, Alio Gold, Argonaut and Odyssey Mineral Exploration released Q2 2018 reports.  ON FINANCING, Harvest Gold closed the final tranche of its non-brokered private placement, accruing C$857 K in gross proceeds. ON RESOURCES AND DEVELOPMENT, Hecla, Alio Gold and Consolidated Zinc reported on actions and programs to affect their resource estimates or development to mining. ON DEALS AND CORPORATE ISSUES, Golden Reign and Marlin Gold reported on their merger agreement, Megastar closed a deal on three properties in Oaxaca and San Marco optioned the Chunibas project in Oaxaca to Antofagasta.

ON MEXICO ISSUES

  • The Mexican Core Shack added images of drill core from Hecla’s San Sebastian project in Durango, at https://gambusinoprospector.com/mexican-core-shack/durango/san-sebastian/ . The Mexican Core Shack now displays three properties in Chihuahua and two in Durango.
  • The newly elected president of Mexico, Andrés Manuel López Obrador, presented 25 priority projects for his coming tenure, one of which is mining development, on a meeting with the Colegio de Ingenieros Civiles de México (Civil Engineers Association of Mexico), the Unión Mexicana de Asociaciones de Ingenieros A.C. and the Engineering Faculty of the Universidad Autónoma de México (UNAM). Carlos Slim was among the cohort of industry leaders in the luncheon held at the Palacio de Minería (Mining Palace) in Mexico City. No details were exposed.

ON EXPLORATION

  • Sable Resources Ltd. released results from a third drill hole on the Margarita vein of its Margarita property in Chihuahua (near Sunshine’s Los Gatos property). The most recent intercept confirms vein continuity over 500 m of longitude. The vein was intercepted 40 m from surface, returning 12.4 m @ 514 g/t AgEq (with Pb and Zn credits, no details released), including 4.10 m @ 902 g/t AgEq, which includes 1.0 m @ 1,048 g/t AgEq and 1.05 m @ 1,035 g/t AgEq. Other five holes have been finished, with similar vein textures having been intersected across similar widths down to a depth of 100 m from surface.
  • Oroco Resources Corp. announced that the Papago 17 concession in Sinaloa has been granted by the government, and the company is now to register its 77.5% interest (got on a deal with a private owner) in the Mexican Public Registry of Mining. The 213 ha Papago 17 concession lies south from the Santo Tomás porphyry copper project, and contains quartz monzonite dikes and hornfelsed andesite.
  • Millrock Resources Inc. reported second phase drilling results from its Navidad project in Sonora. The program focused on targets identified by soil and rock sampling, geophysical surveys and trenching, as well as the Crossover and El Cobre prospects. In total 2,969 m in 14 holes were drilled. Highlighted core length intercepts include 3.9 m @ 1.78 g/t Au; 12.5 m @ 1.14 g/t Au; 8.0 m @ 0.46 g/t Au; 6.3 m @ 0.39 g/t Au, 3.3 m @ 3.84 g/t Au; 8.7 m @ 0.43 g/t Au, 9.0 m @ 0.39 g/t Au; 5.5 m @ 0.72 g/t Au; 8.5 m @ 0.39 g/t Au; 2.6 m @ 1.73 g/t Au; 6.3 m @ 0.43 g/t Au; 7.9 m @ 2.34 g/t Au; 6.0 m @ 0.45 g/t Au; 17.4 m @ 1.61 g/t Au; 9.2 m @ 0.71 g/t Au.
  • One World Lithium Inc. has accepted the Lithium Partnership’s final report summarizing pre-drilling programs for its Salar del Diablo project in Baja California. Eleven drill hole locations have been selected to test the three geophysical anomalies and two geochemical targets. One World intends to commence drilling on the latter part of October 2018.

ON MINING

  • Hecla Mining Co. reported second quarter 2018 results, including figures from its San Sebastian project in Durango, where 559,647 Oz Ag, 3,872 Oz Au were produced during the period. The mill operated at an average of 415 tpd (tons per day). Cash cost was $9.79 per Ag Oz and AISC $17.15 per Ag Oz, reflecting the higher cost of transitioning from open pit to underground mining. “A reduction in per ounce costs is expected in the second half of the year as underground production continues to ramp up”.
  • Torex Gold Inc. reported its financial results for the second quarter 2018. Mine production at Limon-Guajes totaled 7.15 Mt (tonnes), averaging 78,629 tpd (tonnes per day) of which 1.28 Mt was ore processed at 11,140 tpd. Mined ore averaged 2.45 g/t Au and processed ore 2.86 g/t Au, for the production of 78,796 Oz Au, with 87% Au recovery in the period and cash cost of $680 per Oz Au and AISC of $1,017 per Oz Au. Cash held at the end of the period was $117.9 M.
  • Golden Minerals Co. announced financial results for the second quarter 2018. During the quarter Golden reported final drill results from the Santa Maria project (Chihuahua) 2017-2018 drill program and announced the preparation of an updated technical report and preliminary economic assessment (PEA). In August 2018, Golden entered into a non-binding letter of intent with The Electrum Group LLC upon which Electrum is to purchase Golden’s remaining interest in the Celaya property in Guanajuato for a payment of $3 M. Cash and cash equivalents stood at $2.5 M at the end of the period.
  • Argonaut Gold Inc. released financial results for the second quarter 2018. During the period the company produced 38,441 GEOs (Gold equivalent ounces) at cash cost $704 per Oz Au and AISC of $832 per Oz Au. At El Castillo, in Durango, 2.22 Mt (tonnes) of waste, and 2.15 Mt (tonnes) were moved, with 2.12 Mt ore @ 0.37 g/t Au crushed to the pads to produce 10,079 Oz Au, 8,111 Oz Ag at cash cost $992 per Au Oz. At San Agustin in Durango, 618 Kt of waste, 1.85 Mt of ore were moved, with 1.88 Mt of ore @ 0.36 g/t Au crushed to the pads to produce 15,528 Oz Au, 55,781 Oz Ag. At La Colorada, in Sonora, 1.81 Mt of waste, 1.06 Mt of ore were moved (32 K tpd), with 1.14 Mt of ore @ 0.36 g/t Au crushed to leach pads to produce 11,503 Oz Au, 29,360 Oz Ag at cash cost $833. “The Company expects the third quarter 2018 will see lower production due to the lower grades stacked on the leach pad during the second quarter 2018 and also expects higher costs during the third quarter 2018 associated with drilling, blasting and hauling costs for normal state operations”.” While the Company’s explosives permit has been reinstated at La Colorada, the legal action brought against the Secretary of National Defense and the Municipality of La Colorada continues through the Judiciary court process”.
  • Alio Gold Inc. reported second quarter 2018 results. The San Francisco mine in Sonora produced 14,466 Oz Au, 7,661 Oz Ag at by-product cash cost $950 per Oz Au, while AISC was $1,172 per Oz Au. The Company is reducing stripping and focuses mining on more profitable ounces to maintain cash neutral operations. As a result of the reduced stripping, the ”production guidance of 90,000 to 100,000 ounces of gold for 2018 will not be met.” At Ana Paula in Guerrero, all development work including the construction of the underground decline, the completion of the feasibility study and further exploration have been temporarily suspended as result of the recent decline in the gold price.
  • Odyssey Marine Exploration Inc. reported second quarter 2018 results. “Odyssey holds a controlling interest in Oceanica Resources, S. de R.L., and ExO, a subsidiary of Oceanica. ExO controls exclusive 50-year mining permits in an area in Mexican waters that contains a large amount of phosphate mineralized material”.” On March 21, 2018, the 11-judge panel of the Superior Court of the Federal Court of Administrative Justice in Mexico ruled unanimously in favor of ExO, nullifying the original denial of the environmental permit application.“ (Don Diego, Pacific Ocean cost of Baja California Sur)

ON FINANCING

  • Harvest Gold Corp. closed a fourth and final tranche of its non-brokered private placement to raise CDN$200 K for a total of CDN$857 K gross proceeds. “The Company paid finder’s fees of 8% cash and 8% warrants to Canaccord Genuity Corp. on certain funds”. Harvest delivered $700 K to Evrim Resources Corp. to fund the Cerro Cascaron project (in Chihuahua) drill program of up to 3,000 m, beginning the third week of September.

ON RESOURCES AND DEVELOPMENT

  • Hecla Mining Co. reported on brownfield exploration on its mining units, including on the San Sebastian project in Durango, where it continues to expand high-grade polymetallic zones on the Middle and Francine veins. Additional oxide mineralization is being defined along the Professor and East Francine veins. On the Francine vein mineralization has been traced for over 360 m on surface, and over 240 at depth, but once incorporated the newly defined East Francine vein the total strike length of continuous mineralization along the Francine Vein exceeds 2,400 m and can be traced to a depth of over 600 m. Proven and probable reserves stand at 398 K tons @ 3.42 g/t Au, 432 g/t Ag, containing 43,000 Oz Au, 5.52 M Oz Ag and Measured and Indicated resources of 1.5 M tons @ 2.25 g/t Au, 186 g/t Ag, 2.9% Pb, 3.8% Zn, 1.7% Cu, containing 103,000 Oz Au, 8.8 M Oz Ag, 15,520 tons Pb, 20,350 tons Zn, 9,020 tons Cu.Hecla-Q2-2018-ExplorationUpdate1 - copia
  • Alio Gold Inc. informed on the update of mineral reserve estimates at its San Francisco mine in Sonora. “Mining depletion of Mineral Reserves was partly offset by expansion of the reserves in Phases 6 through 9 of the San Francisco Pit. Total proven and probable mineral reserves totaled 854,472 ounces of gold (55.5 million tonnes at 0.49 g/t) as of July 1, 2018, an approximate decrease of 74,228 ounces of gold or 8% from April 1, 2017.”
  • Consolidated Zinc Ltd. informed on its plan to start pilot plant production at its Plomosas project in Chihuahua. The mining scoping studies focus on sulfide mineralization of the updated resource, starting with a 20,400 tonnes indicated resource @ 13.8% Zn, 2.4% Pb. The capital cost is expected to be low, including plant refurbishment and tailings dam upgrade.

ON DEALS AND CORPORATE ISSUES

  • Golden Reign Resources Ltd. and Marlin Gold Mining Ltd. Entered into a definitive agreement to combine businesses and amend stream agreement with Sailfish Royalty Corp. Golden Reign will acquire all of the issued and outstanding shares of Marlin and satisfaction of all closing conditions of the business combination by way of plan of arrangement. As a condition to closing the Transaction, Sailfish has agreed to restructure its existing gold stream on San Albino (La Trinidad, Sinaloa).
  • Megastar Development Corp. closed the transaction to acquire 100% interest on the Rama de Oro, Magdalena and Yautepec projects in Oaxaca. Megastar paid USD$45 K and issued 1.5 M common shares to Minera Zalamera S.A. de C.V., as contemplated in the option agreement. “Furthermore, Mr. David M. Jones, president of Minera Zalamera, has been appointed to the board of directors of Megastar.”
  • San Marco Resources Inc. signed an earn-in agreement with Antofagasta plc on the Chunibas project, located in Sonora. Antofagasta can acquire a 70% interest in the project by spending US$8 M in exploration, and making cash payments on the aggregate of US$200 K over a period of 4 years. A firm commitment of US$700 K will be used primarily for an initial drill program, including $100 K of reimbursement to San Marco of recent exploration expenditures. “The Project consists of stratiform, volcanic hosted coppersilver mineralization, similar to several ore deposits in northern Chile and is a style of mineralisation not previously discovered in Mexico.”

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 below, open cut in one of the structures of the Pozos District, Guanajuato. Picture by Jorge Cirett.

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Highlights on the Second Week of July, 2018. Mining and Exploration News in Mexico

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By Jorge Cirett

During the 28th week of the year (July 9th to July 15th, 2018), at least 23 press releases were announced by companies working in Mexico. Three companies updated on exploration advances. one company announced a financing round while another tries to extend the period for exercise of warrants. Seven companies released Q2 production results and two others a PEA on its properties. Seven companies released advances on the development or exploration of their resource base, and finally one company announced the appointment of its Vice-president Exploration and one other company the optioning of a property to a third party, and returning another to the underlying owner. ON MEXICO ISSUES, No relevant news. ON EXPLORATION, In Sonora, Ridgestone Mining completed an IP survey on its Rebeico property. In Chihuahua Golden Goliath resumed exploration on its San Timoteo project, and in Veracruz Mexican Gold released rock chip sampling results from its Las Minas project.  ON MINING Torex Gold, Endeavour Silver, Great Panther, Capstone, Excellon, Premier Gold and Hecla released second quarter results on production. Sierra Metals released a PEA on a projected production increment at its Bolivar mine in Chihuahua.  ON FINANCING, Prize Mining closed the first tranche of a non-brokered private placement. Candente Gold applied to extend the expiration period of warrants issued on a previous financing. ON RESOURCES AND DEVELOPMENT, Santacruz Silver, SilverCrest, Avino Silver, Kootenay Silver and Golden Minerals released drilling or exploration results on their properties with resources. Orla Mining released a PEA on its Camino Rojo Property in Zacatecas. ON DEALS AND CORPORATE ISSUES, Discovery Metals announced the appointment of Gernot Wober as VP Exploration. Riverside Resources optioned its La Silla property (in Sinaloa) to Sinaloa Resources, and returned the Glor property (in Sonora) to underlying owner Argonaut Gold, after two unsuccessful drill campaigns by Centerra Gold.

ON MEXICO ISSUES

  • No Relevant News.

ON EXPLORATION

  • Golden Goliath Resources Ltd. reported the commencement of its summer exploration program at its San Timoteo property in the Uruachic district of Chihuahua. San Timoteo hosts the longest mining tunnel in the district, with mapping and sampling having defined three ore shoots and a manto horizon within it. No exploration has been carried below the level of the tunnel, and the workings are interpreted to be above the boiling zone of an epithermal system, hence the possibility of potential bonanza grades down dip.
  • Mexican Gold Corp. released high grade sampling results from the Pueblo Nuevo area of its Las Minas projects in Veracruz. Multiple new vein occurrences have been discovered in the Pueblo Nuevo Valley structural corridor. The veins “show characteristics of mesothermal quartz veins”, generally 20 to cm in width, sub-vertical dips and no post mineral deformation. The dioritic host rock displays argillic alteration and sulfides up to one meter on each side of the veins. Chip sampling results include 0.43 m @ 7.87 g/t Au, 74 g/t Ag, 3.5% Zn; 0.30 m @ 6.14 g/t Au, 60 g/t Ag, 5.3% Zn; 0.50 m @ 19.18 g/t Au, 229 g/t Ag, 2.25% Zn; 0.3 m @ 4.33 g/t Au, 30 g/t Ag, 1.1% Zn; 0.15 m @ 16.17 g/t Au, 101 g/t Ag, 0.6% Cu, 14.6% Zn; 0.60 m @ 3.18 g/t Au, 17 g/t Ag, 3.5% Zn; 0.40 m @ 4.11 g/t Au, 22 g/t Ag; 0.45 m @ 19.41 g/t Au, 148 g/t Ag, 1.5% Cu, 0.8% Zn; 0.60 m @ 19.26 g/t Au, 70 g/t Ag, 2.3% Zn; 0.75 m @ 10.12 g/t Au, 30 g/t Ag.
  • Ridgestone Mining Inc. completed an induced polarization (IP) geophysical survey at its Rebeico Au-Cu project in Sonora. The survey comprised nine lines of IP, each 2 km long, for a total of 18 line kilometers spaced 200 m apart, covering an area of 1.6 by 2.0 km. Ridgestone has an option to acquire 100% interest in the project (subject to a 2% NSR) from YQ Gold de Mexico S. de R.L. (a Mexican corporation). The property covers 167 hectares, and includes the Alaska mine, which has old workings of up to 70 m of depth.

ON MINING

  • Torex Gold Resources Inc. released second quarter production results for 2018, period during which 80 K Oz Au were produced at its Limon-Guajes mine in Guerrero. Production has been ramping up, with 9 K tones per day (tpd) on April, 11 K tpd on May and 13 K tpd on June. The SART plant produced its first copper precipitate, with the operations team now taking the plant to full production. The updated technical report on El Limon-Guajes and Media Luna project is to be completed in late July/early August.
  • Sierra Metals Inc. announced the results of a preliminary economic assessment (PEA) on its Bolivar mine in Chihuahua, with the report being filed within 45 days. The PEA includes a net present value (NPV) of US$214 M at 8% discount rate, a return on investment (ROI) of 550%, on 3-4 years payback period and a net after-tax cash flow of US$303 M. The plant is to process 5 K tpd at recovery rate of 85% Cu to produce 252.5 M Lb Cu on 11 years of mine life on the existing mineral resource estimate. The longhole stoping method is to be used for mining.
  • Endeavour Silver Corp. reported production results for the second quarter 2018. At Guanaceví, in Durango, 71.3 K tonnes were produced @ 225 g/t Ag, 0.67 g/t Au, recovering 90.2% Ag, 92.7% Au to obtain 464.9 K Oz Ag, 1,423 Oz Au. At Bolañitos, in Guanajuato, 108.5 K tonnes were milled @ 91 g/t Ag, 1.82 g/t Au, recovering 78.3% Ag, 82.3% Au, to obtain 248.6 K Oz Ag, 5,222 Oz Au. At El Cubo, in Guanajuato, 134.5 K tonnes were milled @ 171 g/t Ag, 1.92 g/t Au, recovering 86.8% Ag, 84.6% Au, to obtain 642.4 K Oz Ag, 7,029 Oz Au. Consolidated production was 1,355.9 K Oz Ag, 13,674 Oz Au. The El Compas mine in Zacatecas is on track to commence commercial production by the end of July at the target capacity of 250 tpd.
  • Great Panther Silver Mines Ltd. reported production results for the second quarter 2018. At the Guanajuato Mine Complex, in Guanajuato, 77 K tonnes were processed @ 127 g/t Ag, 2.40 g/t Au, recovering 87.7% Ag, 88.2% Au to obtain 276.6 K Oz Ag, 5,240 Oz Au. At Topia, in Durango, 18.1 K tonnes were milled @ 371 g/t Ag, 0.69 g/t Au, recovering 93.9% Ag, 63.1% Au, to obtain 203.1 K Oz Ag, 253 Oz Au. Consolidated production of 95.2 K tonnes milled produced 479.8 K Oz Ag, 5,492 Oz Au, 480 tonnes Pb, 528 tonnes Zn.
  • Capstone Mining Corp. released production results for the second quarter of 2018, including figures from its Mexican operations. At Cozamin, in Zacatecas, 227.6 K tonnes were mined, 224.2 K tonnes milled (4,464 tpd) @ 1.66 % Cu, 1.04% Zn, 0.29% Pb, 45.3 g/t Ag. Recovery was 94.6% Cu, 66.4% Zn, 48.1% Pb, 77.5% Ag, to produce 13,581 tonnes of copper concentrate @ 25.9% Cu, 517 g/t Ag; 3,529 tonnes of zinc concentrate @ 47.5% Zn and 494 tonnes of lead concentrate @ 62.3% Pb, 1,717 g/t Ag.
  • Excellon Resources Inc. announced second quarter 2018 production results from its Platosa mine in Durango. Silver equivalent (AgEq) production increased 120% to 637.2 K Oz AgEq on Q2 2017 figures. 16.1 K tonnes were mined, 22.9 K tonnes milled @ 415 g/t Ag, 4.6% Pb, 6.7% Zn with recoveries of 89.6% Ag, 80.2% Pb, 82.2% Zn to produce 277.7 K Oz Ag, 1.85 M Lb Pb, 2.81 M Lb Zn, or 637.2 K Oz AgEq. Low-grade historical stockpiles and sump material with minimal associated mining cost continued to be processed. An AISC of less than $10 per Ag Oz was achieved.
  • Premier Gold Mines Ltd. released second quarter 2018 production results, including figures from its operations in Mexico. At Mercedes, in Sonora, 13,780 Oz Au, 44,366 Oz Ag were produced during the period. Production was impacted through the first half of the year owing to delays in the development of the Diluvio and Rey de Oro deposits. “Reinterpretation of the Diluvio ore shapes required changes to the stope designs. Mining in Rey de Oro was delayed by permitting requirements for the ventilation system”.
  • Hecla Mining Co. released preliminary results for the second quarter of 2018, including figures from its Mexican operations. At San Sebastian in Durango, 0.6 M Oz Ag, 3,872 Oz Au were produced in the period. The mill operated at an average of 415 tpd.

ON FINANCING

  • Prize Mining Corp. closed the first tranche of its non-brokered private placement for gross proceeds of $6.5 M. No finder’s fees were paid as part of this transaction. (Mercedes, Sonora).
  • Candente Gold Corp. has applied to extend the exercise period of 5 M outstanding share purchase warrants issued at a private placement in August 2016. “The original expiry date was August 12, 2018 and if the extension is approved, the new expiration date will be August 12, 2020”.

ON RESOURCES AND DEVELOPMENT

  • Sierra Metals Inc. released a new mineral reserve estimate on the new PEA on its Bolivar mine in Chihuahua. The Cu-Zn skarn (with Ag and Au credits). “Mineralization exhibits strong stratigraphic control and two stratigraphic horizons host the bulk of the mineralization: an upper calcic horizon, which predominantly hosts Zn-rich mineralization, and a lower dolomitic horizon, which predominantly hosts Cu-rich mineralization”. The indicated resources display 13.26 Mt @ 22.5 g/t Ag, 0.29 g/t Au, 1.04% Cu containing 9.6 M Oz Ag, 124 K Oz Au, 137.5 K tonnes Cu, and the inferred resources 8 M tonnes @ 22.4 g/t Ag, 0.42 g/t Au, 0.96% Cu containing 5.8 M Oz Ag, 109 Oz Au, 76.8 K tonnes Cu.
  • Santacruz Silver Mining Ltd. Reported initial phase I drill results from the Garcia and Armado veins on its Veta Grande project in Zacatecas. Ten drill holes totaling 3,323 m of core drilling have been completed, having received results on the first six holes. Some highlighted true width intervals: 1.0 m @ 0.05 g/t Au, 209 g/t Ag; 0.32 m @ 0.37 g/t Au, 312 g/t Ag; 4 m @ 0.06 g/t Au, 168 g/t Ag; 0.95 m @ 1.36 g/t Au, 235 g/t Ag, 7.5% Pb, 8.7% Zn, 0.2% Cu; 0.65 m @ 292 g/t Ag; 0.88 m @ 1.73 g/t Au, 34 g/t Ag.
  • SilverCrest Metals Inc. released further phase III drill results for the Las Chispas property in Sonora. Highlighted intervals on the Babicanora vein: 2.0 m @ 0.87 g/t Au, 269 g/t Ag; 2.5 m @ 6.04 g/t Au, 369 g/t Ag (including (0.8 m @ 14.95 g/t Au, 742 g/t Ag); 0.6 m @ 2.19 g/t Au, 63 g/t Ag. Highlighted intervals on the Babicanora footwall vein include: 5 m @ 54.59 g7t Au 6,535 g/t Ag (including 0.5 m @ 183.50 g/t Au, 21,858 g/t Ag); 2.3 m @ 4.07 g/t Au, 436 g/t Ag; 0.9 m @ 1.15 g/t Au, 151 g/t Ag. The sub parallel Babicanora FW vein high-grade footprint has now been traced for 250 m on strike.
  • Avino Silver Gold Mines Ltd. released drill results from the Chirumbo and Guadalupe areas of the Avino property in Durango. Avino vein highlighted core length intersects include 15.4 m @ 0.20 g/t Au, 129 g/t Ag, 0.64% Cu; 42.75 m @ 0.45 g/t Au, 46 g/t Ag, 0.44% Cu; 15.85 m @ 4.13 g/t Au, 20 g/t Ag, 0.07% Cu; 7.35 m @ 0.36 g/t Au, 47 g/t Ag, 0.33% Cu; 6.0 m @ 0.09 g/t Au, 202 g/t Ag, 0.64% Cu. Highlighted Guadalupe vein results include 0.60 m @ 1.38 g/t Au, 90 g/t Ag, 0.76% Cu; 1.50 m @ 4.79 g/t Au, 11 g/t Ag, 0.05% Cu; 3.75 m @ 0.32 g/t Au, 171 g/t Ag, 0.1% Cu; 1.60 m @ 0.23 g/t Au, 84 g/t Ag, 0.28% Cu; 5.20 m @ 0.07 g/t Au, 26 g/t Ag, 0.34% Cu; 3.90 m @ 0.33 g/t Au, 129 g/t Ag, 0.75% Cu. The Guadalupe vein has shown to extend along 800 m and to a depth of 250 m. Avino is planning a new drill program targeting the Aguila Mexicana vein system, which is one of the strongest and widest structures on the property.
  • Kootenay Silver Inc. released the results of eight core holes from its La Cigarra property in Chihuahua. The holes tested parts of the Las Carolinas, La Borracha and La Nogalera zones, returning medium to high grade silver intercepts in all areas. Highlighted results include: At La Borracha 12.37 m @ 33 g/t Ag, 0.05 g/t Au, 0.2% Pb, 0.2% Zn; At La Nogalera 1.78 m @ 48 g/t Ag, 0.72 g/t Au; 4.0 m @ 736 g/t Ag, 0.09 g/t Au, 0.3% Pb, 0.1% Zn; At Las Carolinas 14.0 m @ 79 g/t Ag, 0.03 g/t Au (including 6.79 m @ 144 g/t Ag, 0.05 g/t Au; 41.38 m @ 45 g/t Ag, 0.03 g/t Au.
  • Golden Minerals Co. disclosed that surface mapping and sampling identified the eastern extension to the Santa Maria vein at the Santa Maria project in Chihuahua. Several other veins were also discovered in the adjacent Cervantes concessions in an exploration exercise on which 542 rock chip samples were collected. The Santa Maria vein occurs as a series of quartz-calcite veins up to 4.5 m in width, returning assays as high as 0.6 g/t Au, 347 g/t Ag, 1.2% Zn. The Cervantes quartz-calcite vein system occurs 800 m east of the current resource area, for 700 m of strike length, returning up to 1.6 g/t Au, 207 g/t Ag, 0.24% Cu, 5.6% Pb, 19.5% Zn over widths of up to 1.3 m. Golden estimates completing the PEA during the third quarter of 2018.
  • Orla Mining Ltd. filed a preliminary economic assessment (PEA) on its Camino Rojo property, Zacatecas. The PEA visualizes a technically simple open pit mine and heap-leach operation with low capital and operating costs, “rapid payback and strong financial performance”. The project envisages a 3.3 payback period, working at a 18 K tpd rate that would place 42.5 M tonnes of material on the heaps @ 0.71 g/t Au, 13.6 g/t Ag (966 K Oz Au, 18.5 M Oz Ag), with a recovery rate of 67% Au and 15% Ag, producing 97,500 Oz/year at an All-in sustaining cost of $555 Oz/Au.

ON DEALS AND CORPORATE ISSUES

  • Discovery Metals Corp. announced the appointment of Gernot Wober as its Vice-President Exploration (Puerto Rico, Coahuila).
  • Riverside Resources Inc. and Sinaloa Resources Inc. signed a letter of intent (LOI) whereby Sinaloa Resources can earn up to 100% interest in Riverside’s La Silla project in Sinaloa. The initial option to earn 70% lies on Sinaloa issuing shares for $1 M, $60K in cash payments and exploration work commitments of $3 M over 36 months. To earn an additional 30% Sinaloa must spend a further $1 M in exploration and issue Riverside $500 K in shares. Riverside is to retain a 2.5% NSR if Riverside’s interest reduces to less than 10%. Previous work in the 2,071 hectares project includes 6 drill holes on the El Roble system, with intersects of up to 15 m @ 6.9 g/t Au.
  • Riverside Resources Inc. announced that drilling assays from two campaigns funded by Centerra Gold Inc. returned insufficient mineralized thickness and continuity to justify further exploration on the Glor project in Sonora. Riverside believes it has tested the best targets on the property and has terminated the underlying option earn-in agreement with Argonaut Gold.

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, structure in fine grained sedimentary rocks with iron oxides and minor quartz veining, greenish clays on the walls. From a shallow epithermal system in Guanajuato. Picture by Jorge Cirett

Highlights on the Third Week of June, 2018. Mining and Exploration News in Mexico

 

By Miguel A Heredia

During the 25th week of the year (June 18th to June 24th, 2018), at least 23 press releases were announced by companies working in Mexico, with eight informing on exploration results, eight communicating deals and corporate issues, five  announcing financing rounds, one reporting on resources and development, and one running leaching tests.  ON MEXICO ISSUES, no relevant news.   ON EXPLORATION, In Sonora, Millrock reported trench results from its La Navidad project. In Chihuahua, Ethos Gold filed a draft NI 43-101 technical report for its la Purisima project. In Coahuila, Discovery Metals reported sampling results from its Puerto Rico project. In Sinaloa, Chesapeake released exploration results from its Yarely project and Riverside reported exploration results from its La Silla project. In Zacatecas, Excellon commenced a drill program at its Miguel Auza project while Defiance defined a significant anomaly at its San Acacio project.  ON MINING, Mexus Gold provided and update on progress from its 8 Brothers/370 gold project in Sonora.  ON FINANCING, Aura Silver announced the extension of 3.5M warrants. Harvest Gold closed a second tranche of a non-brokered private placement for CDN$149,600. Maverix entered in a revolving credit agreement to borrow up to US$50M. Prize amended terms of a non-brokered private placement to raise money for $6.5M. Starcore completed a private placement for CDN$3M. ON RESOURCES AND DEVELOPMENT, Sierra Metals announced PEA results for its Cusi Mine in Chihuahua. Minera Alamos provided an update on its Guadalupe de Los Reyes project in Sinaloa. ON DEALS AND CORPORATE ISSUES, Coeur signed a definitive agreement with Evrim to option the Sarape property in Sonora.  Avino and Consolidated Zinc announced management changes, and Colibri and Torex reported results from its annual general meeting of shareholders. Marlin, Gold Reign, and Sailfish entered in a definite arrangement agreement regarding a combination business. Equinox announced a spin-out of its copper assets to create Solaris Copper. Valterra entered into an option agreement to acquire the Los Reyes Cu-Au project in Chihuahua.

ON MEXICO ISSUES

  • No relevant news.

ON EXPLORATION

  • Millrock Resources Inc., reported trench results from its La Navidad project in Sonora. Significant results are 7m of 0.64 g/t Au; 8m of 0.5 g/t Au, 16m of 0.59 g/t Au; 4.5m of 1.63 g/t Au; 2m of 6.5 g/t Au, 1.3m of 5.26 g/t Au; and 1.5m of 4.5 g/t Au. Its partner Centerra Gold is funding the exploration program at La Navidad and has authorized an extension of the drilling program from 1,650m in 7 holes to 2,900m in 17 holes.
  • Ethos Gold Corp., filed a draft NI 43-101 technical report for its la Purisima project in Chihuahua. The mineralization target consists of low sulphidation epithermal veins which have been traced for over a N-S strike length of over 1.5km in length. The company signed a property access agreement to commence mapping and sampling work with 389 samples collected to date of which 189 have been already submitted to the lab for assays.
  • Discovery Metals Corp., reported sampling results from its Puerto Rico project in Coahuila. 293 channel samples were collected at the Zaragoza mine, of which 83 were from manto mineralization and returned an average grade of 129 g/t Ag, 4.3% Pb, 7.6% Zn, and 0.12% Cu.
  • Riverside Resources Inc., presented geochemical results of 52 samples collected at its La Silla project in Sinaloa. Significant results from the rock chip and channel samples are 1m of 2.1 g/t Au and 27 g/t Ag; 1m of 9.4 g/t Au and 196 g/t Ag; and 1m of 19.9 g/t Au and 200 g/t Ag.
  • Chesapeake Gold Corp., released exploration results, including phase 1 drilling from its Yarely project in Sinaloa. At Loretos prospect, the drill target is a blind skarn-porphyry system indicated by a significant chargeability anomaly. Significant results are 213m of 0.11% Cu, including 64m of 0.17% Cu. At the Central prospect, one of the two holes drilled intersected several 3 to 6m wide structures returning silver values ranging from 11 to 30 g/t. At Lucy prospect, two holes tested skarn/carbonate replacement manto mineralization. Drilling results returned 22m of 0.33 g/t Au and 1.5 % Zn; and 25m of 0.6 g/t Au, 22 g/t Ag, 0.25% Cu, and 1.6% Zn. At Sundae prospect, the company has identified a 3km long high level-low sulphidation epithermal system that runs for over 3km along strike, with individual structures varying from 1-5m in width. A preliminary geophysical survey showed a continuity of the vein host structures to over 500m depth. At Los Mimbres prospect, skarn and hornfels boulders with Cu and Pb sulphide mineralization were recently discovered adding a new target within the Yarely project. Mineralization identified at Los Mimbres is similar to that encountered at Metates. Stream sediment, soil, rock geochemistry and geological mapping are underway to advance this target to the drill stage.
  • Excellon Resources Inc., commenced a 3,000m drill program at its Miguel Auza project in Zacatecas to test targets generated from surface mapping, IP surveying, and structural work conducted since mid-2017 at El Cobre, Abejas, Carmen-Lechuzas, and Lomo de Las Minas prospects. Highlights from the surface sampling are 2.3 g/t Au and 667 g/t Ag at Lomo de Las Minas. Results up to 2.9 g/t Au and 300 g/t Ag were sampled at Carmen and El Cobre confirming mineralization in veins at both targets. Mineralization at Miguel Auza is hosted in epithermal quartz veins similar to those found at Fresnillo mining district.
  • Defiance Silver Corp., defined a significant geophysical anomaly at its San Acacio project in Zacatecas employing Atomic Energy Resonance Imaging (AERI) technology. The AERI identified a pipe shaped anomaly which measures 400m in width, 300m in length, and is open at depth. The AERI anomaly is coincident with a recently delineated IP target, and will be drill tested in the near future.

ON MINING

  • Mexus Gold US., provided and update on progress from its 8 Brothers /370 gold project in Sonora. The company has completed the crushing and loading of ore into the VAT leaching tank to run tests and expects to commence the leaching when tests are completed in the next days.

ON FINANCING

  • Aura Silver Resources, announced its intentions to extend the expiration date of 3.5M warrants from July 9, 2018 to July 9, 2020. The exercise price remains unchanged at $0.05 (Taviche, Oaxaca)
  • Harvest Gold Corporation, closed a second tranche for CDN$149,600 for a total of CAD$479,600 gross proceeds raised in the non-brokered private placement. Gross proceeds will be used to explore its Cerro Cascaron project in Chihuahua.
  • Maverix Metals Inc., entered into a 3 years revolving credit agreement with two bank institutions to borrow up to US$50M. The credit can be extendable through mutual agreement between the involved parties (La Colorada, Zacatecas)
  • Prize Mining Corporation, amended terms of a non-brokered private placement to raise money for $6.5M (Manto Negro, Coahuila).
  • Starcore International Mines Ltd., completed a private placement of secured bonds for CAD$3M (San Martin, Queretaro)

 ON RESOURCES AND DEVELOPMENT

  • Sierra Metals Inc., announced PEA results for its Cusi Mine in Chihuahua. Highlights include an after-tax NPV of $92.2M USD at an 8% discount rate, a 9 years mine life based on existing mineral resource estimate, and a life of mine silver production of 30 M Oz. The company also reported Mineral Resource Estimate as at February 12, 2018. Total measured mineral resources are 362K tonnes @ 225g/t Ag, 0.55% Pb, 0.68% Zn, and 0.13g/t Au. Total indicated resources are 4.2M tonnes @ 217g/t Ag, 0.64% Pb, 0.66% Zn, and 0.21 g/t Au. Total inferred resources are 1.63M tonnes @ 158 g/t Ag, 0.54% Pb, 0.84% Zn, and 0.16 g/t Au.
  • Minera Alamos Inc., provided an update on its Guadalupe de los Reyes project in Sinaloa. The company commenced the mapping of the Mariposa- Zapote structure to evaluate extensions that have not been drilled and could be target areas to expand the resource. The company also collected metallurgical samples and are being prepared for Au leaching studies. It also commenced engineering studies to establish locations and preliminary designs for Au heap leaching facilities.

ON DEALS AND CORPORATE ISSUES

  • Coeur Mining Inc., signed a definitive agreement with Evrim Resources Corp., to option the Sarape property in Sonora. Coeur will have the exclusive right to acquire up to an 80% interest in the property by spending up to $16M USD on exploration, making staged cash payments of up to $2.5M USD, and completing a NI 43-101 compliant FS on a minimum measured and indicated resource estimate of 1M Oz AuEq, all within a ten-year period.
  • Marlin Gold Mining Ltd., Golden Reign Resources Ltd., and Sailfish Royalty Corp., have extended the previously announced LOI to June 29, 2018 to enter in a definitive arrangement agreement regarding a business combination of the Golden´s San Albino-Murra property in Nicaragua and Marlin´s La Trinidad property, México.
  • Equinox Gold Corp., announced plans to transfer all of its copper assets into a newly incorporated company named Solaris Copper Inc. (La Verde, Michoacan).
  • Valterra Resource Corporation, entered into an agreement to acquire the Los Reyes Cu-Au project in Chihuahua. Valterra may acquire a 100% interest, subject to a 2% royalty to a third party, by making staged payments totaling US$4M over a period of 5 years. Target consists of a +800m long Cu-Au rich skarn developed in the contact between a Tertiary-age granodiorite intrusive and Cretaceous-age limestones and shales.

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

On the picture above, phyllic alteration in a porphyry copper system in Jalisco, Mexico. Photo by Miguel A Heredia.

Highlights on the Second Week of June, 2018. Mining and Exploration News in Mexico

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By Jorge Cirett

During the 24th week of the year (June 11th to June 17th, 2018), at least 16 press releases were announced by companies working in Mexico. Four companies updated on exploration advances, and one the commencement of mining activities. Four companies announced financing rounds, loans and bonds for an aggregate of over $55 M. One company disclosed news on drilling near resources and development while one other released metallurgical test results. ON MEXICO ISSUES, mining companies are awaiting a Supreme Court resolution on a Zacatecas State tax imposition on mining. ON EXPLORATION, In Sonora, Aloro updated on exploration work at Los Venados; Colibri finished drilling at El Pilar, and released results from a soil survey; Colibri disclosed drilling results by Agnico at its Pitaya project. In Veracruz, Azucar Minerals started a drilling campaign on the Norte zone and the north part of the Villa Rica zone at its El Cobre porject. ON MINING, Mexus started pilot mining at its 8 Hermanos property in Sonora. ON FINANCING, Alamaden raised $9.4 M; Starcore launched a private placement for CDN$3 M; Telson paid US$8 M and obtained a loan for US$8.5 M; Endeavour Silver is to sell common shares for an aggregate of up to $35.7 M. ON RESOURCES AND DEVELOPMENT, SilverCrest Metals released high-grade results from drilling of the Granaditas vein on Las Chispas project, in Sonora. Azure Minerals released metallurgical test results from Oposura, also in Sonora. ON DEALS AND CORPORATE ISSUES, Starcore decided not to go ahead with the acquisition of the Santa Fe property in Sinaloa. Defiance Silver entered into an agreement to acquire Mag Silver’s properties in the Zacatecas District.

ON MEXICO ISSUES

  • Fresnillo PLC and Mag Silver Corp. are awaiting a Supreme Court (Suprema Corte de la Nación) resolution on a mining duty attached to environmental impact, set by the state of Zacatecas. The federal government challenged the State’s right to impose such a duty back in 2017.

ON EXPLORATION

  • Aloro Mining Corp. updated on its exploration of the Los Venados project in Sonora. Mapping and sampling have defined a rhyodacitic volcanic dome associated with high sulfidation style alteration with Au-Bi-Mo anomalies. Several felsic dome/silica breccia complexes have been located, with the highest priority target on the dome at the southeast part of the property, where gold in soil anomalies and IP anomalies coincide. A new environmental report is being submitted to the authorities, seeking permit for 12 reverse circulation holes.
  • Colibri Resource Corp. completed the final 900 m of its 3,000 m phase 1 drilling program on its Pilar project in Sonora. Samples have been taken to the lab and results are pending. A 56 sample soil survey returned 10 samples greater than 0.1 g/t Au, and 3 samples over 1 g/t Au.
  • Colibri Resource Corp. released results from drilling on its Pitaya project in Sonora, by joint venture partner Agnico Eagle. Highlighted results from the last four holes comprise 9 m @ 0.26 g/t Au; 26 m @ 0.19 g/t Au; 34 m @ 0.22 g/t Au. During 2016-2017, Agnico drilled 7,641 m in 27 drill holes.
  • Azucar Minerals Ltd. has begun drilling the North zone and the north end of the Villa Rica zone of its El Cobre project in Veracruz. Preparations for this drilling campaign include surface and soil geologic and alteration focused mapping and sampling. “The current drilling at Villa Rica is focused on the Naranjo zone, a new area of exposed porphyry alteration and mineralisation located approximately 500 metres north of the previous Villa Rica drilling and about 1.2 kilometres south of the Norte Zone.”

ON MINING

  • Mexus Gold US begun mining at the 8 Brothers/370 project in Sonora. “The company has mined 1000 tons of material containing an average of 9 grams Au and 50 grams Ag per ton. This material is currently being run through a crushing system and placed into an aerated VAT holding tank”. Its portable Merril Crowe system has been installed and tested.

ON FINANCING

  • Almaden Minerals Ltd. closed its previously announced non-brokered private placement, raising gross proceeds of $9.44 M. Finders fees of $384.9 K cash and finder warrants of 192,450 shares at $1.35 until June 7, 2020 were paid to arms-length, licensed securities dealers on a portion of the offering (Ixtaca, Puebla).
  • Starcore International Mines Ltd. launched a private placement of secured bonds for CDN$3 M. “The Bonds will bear interest at 8% per annum, payable on maturity, and will mature 24 months from the date of closing” (San Martin mine, Queretaro).
  • Telson Mining Corp. announced the payment of US$8 M to Nyrstar Mining Ltd. as partial payment, and entered into a loan agreement with Nyrstar Canada (Holdings) Ltd. that converts the final US$8.5 M due on the Campo Morado acquisition agreement into a loan that extends the payment terms for eight months. The principal due is US$8.5 M that are to be paid starting July 13, 2018 with a monthly minimum of US$1 M plus interest, plus 70% of the free cash flow generated by Telson and any monthly excess cash balance above US$500 K.
  • Endeavour Silver Corp. is to sell from time to time and its discretion common shares for an aggregate of up to US$35.7 M, through “at the market” distributions (Terronera, Jalisco).

ON RESOURCES AND DEVELOPMENT

  •  SilverCrest Metals Inc. announced new drill results for the Granaditas vein at its Las Chispas property in Sonora. Highlighted true width (TW) intervals comprise 1.5 m @ 3.63 g/t Au, 190 g/t Ag; 1.8 m @ 12.14 g/t Au, 1,440 g/t Ag (including 0.40 m @ 47.50 g/t Au, 5,620 g/t Au); 1.3 m @ 3.24 g/t Au, 339 g/t Ag; 1.2 m @ 1.23 g/t Au, 114 g/t Ag. The vein has a high-grade footprint currently at 150 m long by 100 m high and 1.5 m average true width, grading 5.69 g/t Au, 596 g/t Ag.
  • Azure Minerals Ltd. released metallurgical test work results on its Oposura project in Sonora. Azure highlights a 34% overall increase in the recovery of Pb and Zn using a dense media separation technique.

ON DEALS AND CORPORATE ISSUES

  • Starcore International Mines Ltd. completed its due diligence and review of the Santa Fe project in Sinaloa, under a previously signed LOI (letter of intent). Starcore will not be proceeding with the acquisition.
  • Defiance Silver Corp. entered into an agreement to acquire Mag Silver’s Zacatecas silver district holdings. Mag Silver is to receive 5 M common shares of Defiance, approximately a 5% investment position. Defiance is to receive a 100% interest in the Lagartos project, along with a regional database. The company is to control 1,506 ha, including 65% of the Veta Grande vein and the San Acacio silver deposit.

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, intense kaolinitization of felsic volcanic rocks on a shallow epithermal system in Guanajuato. Picture by Jorge Cirett.

 

Highlights on the First Week of June, 2018. Mining and Exploration News in Mexico

By Miguel A Heredia

During the 23th week of the year (June 04th to June 10th, 2018), at least 17 press releases were announced by companies working in Mexico, with five informing on exploration results, five communicating deals and corporate issues, three reporting on resources and development,  one reporting the commissioning of a new mill circuit, and one announcing financing.  ON MEXICO ISSUES, Argonaut reported that the explosive permit for its La Colorada Mine in Sonora has been postponed. Pan American provided an update on its Dolores Mine in Chihuahua.  ON EXPLORATION, In Sonora, Azure reported final drill results from its Oposura project, and Minaurum reported exploration results from its Alamos project. In Sinaloa, Goldplay announced exploration results from its El Habal project. In Coahuila, Discovery Metals reported exploration results from its Monclova project. In Oaxaca, Megastar acquired two new projects.  ON MINING, Avino commissioned the mill circuit 4 on its Avino Mine in Durango.  ON FINANCING, Almaden closed a non-brokered private placement for $9.4M. ON RESOURCES AND DEVELOPMENT, Sierra Metals extended the NW Bolivar orebody at its Bolivar Mine in Chihuahua. Capstone announced an updated mineral resource estimate for its Cozamine mine in Zacatecas. Bacanora provided an update on the ongoing development of its Sonora Lithium project in Sonora. ON DEALS AND CORPORATE ISSUES, Silver Bull and South 32 Ltd formed a JV in the Sierra Mojada project in Coahuila. Sonoro appointed Mel Hendricks as VP Exploration. Sierra Metals announced results of its annual general meeting. Monarca announced management restructuring. San Marco named Christian Grijalva as the CEO of the company

ON MEXICO ISSUES

  • Argonaut Gold Inc., reported that the hearing on the explosives permit for its La Colorada Mine in Sonora has been postponed and is awaiting court scheduling.
  • Pan American Silver Corp., announced that the security situation has improved at its Dolores Mine in Chihuahua, and the access is now better following increased patrol and enforcement by the Mexican authorities. The company also will make use of its private airstrip to transport people to and from the mine site until the situation normalizes.

ON EXPLORATION

  • Azure Minerals Ltd., reported final drill results from the West Zone at its Oposura project in Sonora. Significant results are 10.85m of 40 g/t Ag, 5.8% Pb and 8.6% Zn; 4.1m of 48 g/t Ag, 8.5% Pb and 8.8% Zn; 4.95m of 15 g/t Ag, 5.9% Pb and 7.2% Zn; and 3.6m of 25 g/t Ag, 0.2% Pb and 15.4% Zn. The company also announced that the mineral resource estimate is ongoing and is expected to be completed in June 2018.
  • Minaurum Gold Inc., announced the discovery of three new veins (Pulpito, Cotera, and Ana) at its Alamos Silver project in Sonora. “The Pulpito vein, located 1 km west of the Minas Nuevas target, has been traced for over 800 m and measures up to 2 m wide; outcrop and dump samples along it ranged from 67 to 1,495 g/t Ag and 400 ppm to 3.81% Cu. The nearby Cotera vein has been traced for more than 200 m and a topographic linear suggests it extends another 800 m to the north. Sampling along the Cotera vein returned values between 32 and 1,370 g/t Ag and 200 ppm to 3.4% Cu. The Ana vein is located 750 m east of the Tigre vein and has been mapped for over 2km; samples results are pending”.
  • Goldplay Exploration Ltd., announced trenching results from its El Habal project in Sinaloa. Significant results are 130m of 1.86 g/t Au, 100m of 1.2 g/t Au and 90m of 0.84 g/t Au. These results have identified oxidized Au mineralization along a 1,000m-long mineralized zone. The geochemical sampling results along with a ground CSAMT survey will be used to define targets to be drill-tested.
  • Discovery Metals Corp. reported assay results of 311 surface samples from the Real Viejo and the La Soledad Zones within its Monclova project in Coahuila. Mineralization at Real Viejo consists of Ag-Pb-Zn skarn and is contained in breccia veins and mantos. The average grade of 69 samples was 148 g/t Ag and 5.5% Zn+Pb. At La Soledad, the mineralization style consists of Cu-Au skarn. Results from the best ten channel samples returned and average of 1.5 g/t Au and 1.5% Cu with high values of 7.9 g/t Au and 6.9% Cu. The company plans to obtain detailed hyperspectral imagery of the property and conduct an IP and ground magnetic survey on Q2 to perform an initial drill program on Q3.
  • Megastar Development Corp., signed a definite option agreement to acquire 100% of the Yautepec and Magdalena epithermal Au-Ag projects in Oaxaca from Paradex and Minera Zalamera. “The Yautepec property comprises 4,861 hectares of Tertiary volcanic rocks highly prospective for hosting epithermal precious metal mineralization similar to that in the nearby producing Arista and Switchback mines at God Resources El Aguila project and Chesapeake Gold´s La Gitana project”. “The Magdalena Project comprises a single 480-hectare property centered on highly altered volcanic rocks approximately 20 kilometers ENE of Gold Resource Corporation’s (GRC) producing Au-Ag-base metal deposits”.

ON MINING

  • Avino Silver & Gold Mines Ltd., has commissioned the mill circuit 4 to add it to the production profile of its Avino Mine in Durango. It has increased the production capacity by 70% and is expected to be online full time in early January 2019.

ON FINANCING

 Almaden Minerals Ltd., closed a non-brokered private placement for $9.4M. Net proceeds will be used for exploration and development activities at its Ixtaca project in Puebla.

ON RESOURCES AND DEVELOPMENT

  • Sierra Metals Inc., announced infill drilling results and extended the NW Bolivar orebody by additional 400m at its Bolivar Mine in Chihuahua. Drill significant results are 18m of 0.46 g/t Au, 38 g/t Ag, 2.1% Cu, and 0.4% Zn; 14m of 17 g/t Ag and 2.4% Cu; and 8m of 25 g/t Ag and 1.4% Cu. The extension contains an average grade of 1.37% Cu over an average true width of 8.1m.
  • Capstone Mining Corp., announced an updated mineral resource estimate as at March 31, 2018 for its Cozamine mine in Zacatecas. Total measured and indicated resource are 13M tonnes of 43 g/t Ag, 1.67% Cu, 0.2% Pb, and 0.8% Zn for a total of 18M Oz Ag, 486M Lb Cu, 44.8M Lb Pb, and 240M Lb Zn. Total inferred resources are 9.9M tonnes of 40 g/t Ag, 1.15% Cu, 0.39% Pb, and 1.2% Zn for a total of 12.8M Oz Ag, 255.4M Lb Cu, 62.7M Lb Pb, and 275.5M Lb Zn. Subsequent to this updated resource, a further 31 holes have been drilled in the Mala Noche Footwall Zone remaining open up dip and to the southwest. The company is currently conducting a 40,000m of step-out and infill drilling this year on the inferred class resource.
  • Bacanora Lithium plc., provided an update on the ongoing development of its Sonora Lithium project in Sonora. The company prepares to commission a fully integrated lithium carbonate operation of a 17,500 tonnes per year plant before upgrading to 35,000 tonnes per year within 20 months subject to project financing.

ON DEALS AND CORPORATE ISSUES

  • Silver Bull Resources Inc., and South 32 Ltd., formed a 70/30 JV in the Sierra Mojada project in Coahuila with an investment of US $100M. To keep the JV on, South 32 must spend in exploration a minimum of US $10M over the next four years, with minimum exploration funding of US $3M, US $ 6M, and US $8M by the end of the years 1, 2, and 3 of the option period respectively.
  • Sonoro Metals Corp., appointed Mel Hendricks as VP Exploration.
  • San Marco Resources Inc., announced results of its annual general meeting and appointed Christian Grijalva as the CEO of the company.

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

On the picture above, an open void “boxwork” texture of goethite-jarosite after sulphides in a prospect in Chiapas, Mexico. Photo by Miguel A Heredia.