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

Mn oxide-calcite fault vein-bx

By Miguel A Heredia

During the forty-five week of the year (November 4th to November 10th, 2019), at least 37 press releases were announced by companies working in Mexico, with nine communicating production and financial results, eight disclosing deals and corporate issues, six announcing financial rounds, five informing on exploration results, four reporting on resources and development of their projects, three commenting on Mexican issues, and two discussing issues on social responsibility.  ON MEXICO ISSUES, according to the Director of Mines of Zacatecas, there are five new mine projects in the state to be developed in 2020. Newmont-Goldcorp restated the dialogue process with the Cedros community on its Peñasquito mines in Zacatecas. Local communities and small local merchants expressed their support for the continuity of the Peñasquito mine. ON EXPLORATION, In Sonora, Silver Viper mobilized an exploration crew to its Virginia project to commence a drilling program at the El Rubi target area, and Oceanus reported underground and surface sampling results from its El Tigre project. In Sinaloa, Vizsla reported underground sampling from its Panuco-Copala project.  In Zacatecas, Advance Gold outlined a km long by 400-500m wide chargeability anomaly at its Tabasqueña project. In Jalisco, GoGold released drill results from 4 holes collared at its Los Ricos project.  ON MINING, Alio Gold, Argonaut, Coeur, Endeavour, Excellon, First Majestic, Hecla, Leagold, and Pan American presented Q3 2019 production and financial results from its Mexican operations.  ON FINANCING, Discovery Metals closed a non-brokered private placement for gross proceeds of $19M (Cordero project, Chihuahua). Goldplay closed a brokered private placement for $3M (San Marcial project, Sinaloa).Solaris Copper announced its intention to undertake a non-brokered private placement to raise gross proceeds of up to  CAD $5.5M (La Verde, Michoacan). Advance Gold closed the first tranche of a non-brokered private placement for gross proceeds of $113K (Tabasqueña project, Zacatecas). Orex announced that intends to undertake a non-brokered private placement to raise gross proceeds of up to $1M (Sandra-Escobar project, Durango). San Marco revised its previously announced non-brokered private placement and now intends to rise gross proceeds for up to CAD $376.6K. It also closed subscription books for unit and flow through shares private placement for gross proceeds of CAD $40K (Chunibas project, Sonora). ON RESOURCES AND DEVELOPMENT, Capstone announced high grade Cu-Ag results from 103 infill and step-out drill holes at its Cozamin mine in Zacatecas. Vizsla closed its option agreement to acquire 100% interest of Panuco-Copala project in Sinaloa. Torex extended mineralization 150m below current reserves at its El Limon Deep deposit in Guerrero. Mexus announced that its Merrill Crowe Au recover plant is complete and operational at its Santa Elena mine in Sonora. Mag Silver informed about the activities carried out at its Juanicipio project mine development in Zacatecas during Q3, 2019. ON DEALS AND CORPORATE ISSUES, Colibri received TSX approval for its acquisition of Yaque Minerals (Mezquite and Jackie projects, Sonora). Vizsla closed its option agreement to acquire 100% interest in Panuco-Copala property in Sinaloa. Great Panther announced the appointment of its VP Exploration and VP People & Culture (Topia mine, Durango). Solaris Copper announced management changes of its team (La Verde project, Michoacan). Starcore presented results from its annual general meeting of shareholders (San Martin mine, Queretaro). Mako Mining provided a corporate update and status of its Mexican operation. Compañía Minera Cuzcatlán, a subsidiary of Fortuna Silver Mines revealed that it is analyzing to invest in a new plant in Mexico (San Jose mine, Oaxaca). Minera Autlán announced its intention to raise its commitment to gold (Lluvia de Oro-La Jojoba, Sonora). ON SOCIAL RESPONSIBILITY, Agnico Eagle participated in the reconstruction of the drinking water system at Yepachi, Chihuahua, with a total investment of MXP $4M. Argonaut participated in multiple social programs related to their Mexican operations.

ON MEXICO ISSUES

  • The Secretariat of Economy in Zacatecas, through its Director of Mines, revealed that new five mines will be developed in the state in 2020, standing out Juanicipio in Fresnillo, Camino Rojo in Mazapil , and San Nicolas in Villa Garcia municipalities. Zacatecas is one of the most prolific areas for mining in the country; however, he is aware of the social problems faced by some of the mining companies which operate in the state. He informed that the local government seeks to generate the conditions for mining companies to invest safely in new projects.
  • Newmont-Goldcorp Corporation, restated the dialogue process with the community of Cedros, municipality of Mazapil on Peñasquito mine. A new agreement was signed for the community delegates, with a strong commitment of both parties, by the community not to block again the mine and from the company to attend on time the concerns and proposal from the Ejido.
  • Local communities and small local merchants, expressed their support for the continuity of Peñasquito mine. The communities of Cedros, El Rosario, La Pardita, Sábana Grande, Tanquecillos, Tecolotes, Mazapil and El Trigo said they are in favor of the Peñasquito Mine, stating that it has provided benefits to their families. At a press conference, representatives of the aforementioned communities reported that thanks to the company they have work, so they asked the state government to support them and that, through the dialogue avoids a new block. They affirmed that they are against the blockades and the definitive closure of the mine, since this one supports around 25 communities. They said the mining company has provided a source of work to the people of the communities and do not want it to disappear.

ON EXPLORATION

  • Silver Viper Minerals Corp., mobilized an exploration crew to its Virginia project in Sonora to commence a phase II drilling program at El Rubi target area, where previous drilling carried out in 2018 intersected 3.18 g/t Au and 228 g/t Ag (6.42 g/t AuEq) over 6m of true width. Phase II will test the extension of this structure along trend and at depth on 50m sections with the aim of generating enough information for maiden resource estimation at El Rubi.
  • Oceanus Resources Corporation, presented underground and surface sampling results from the Caleigh, Canon Combination and Protectora Veins at its El Tigre project in Sonora. In the Caleigh Vein, underground channel sample ETU-1007 returned 1,896 g/t Ag and 6.4 g/t Au (2,376 g/t AgEq) over a true width of 0.50m, and ETU-1006 returned 1,971 g/t Ag and 4.64 g/t Au (2,318 g/t AgEq) over a true width of 0.50m. In the Canon Combination Vein, underground channel sample ETU-1012 returned 1,794 g/t Ag and 0.25 g/t Au (1,813 g/t AgEq) over a true width of 0.50m. In the Protectora Vein, underground channel sample returned 378 g/t Ag and 2.01 g/t Au (529 g/t AgEq) over a true width of 0.50m. Surface samples collected on this vein reported 374 g/t Ag and 3.32 g/t Au over 0.7m wide; 192 g/t Ag and 0.57 g/t Au (235 g/t AgEq) over 0.5m wide; and 169 g/t Ag and 1.0 g/t Au (244 g/t AgEq) over 0.50m wide. “The results from the mapping and sampling of the underground workings and at surface present a series of high priority drill targets over a 2 kilometer strike length north of the old El Tigre Mine, which we intend to drill.”
  • Vizsla Resources Corp., reported encouraging underground sampling results from its Panuco-Copala project in Sinaloa. Highlights results from the underground sampling at the San Carlos mine are 5.65 g/t Au and 612 g/t Ag (1,120 g/t AgEq) over  6m on development level 4, including 10.5 g/t Au and 1,120 g/t Ag (1,960 g/t AgEq) over 3m; 2.55 g/t Au and 517 g/t Ag (721 g/t AgEq) over 4.5m on development level 5, including 3.51 g/t Au and 721 g/t Ag (1.002 g/t AgEq) over 3m; and 2.12 g/t Au and 298 g/t Ag (468 g/t AgEq) over 5.5m on development level 4, including 3.76 g/t Au and 591 g/t Ag (892 g/t AgEq) over 1.5m. These results are part of a mapping and sampling program to better understand mineralization at Panuco project.
  • Advance Gold Corp., completed a second phase of a 3D-IP survey and has outlined a N-S trending chargeability anomaly of 1km long by 400-500m wide on its Tabasquena project in Zacatecas. It remains open in both directions as well as at depth. A number of boreholes are now planned to intersect this anomaly.
  • GoGold Resources Inc., released drill results from 4 new holes collared at its Los Ricos project in Jalisco. Three of the 4 holes were drilled at El Troce area and significant intersections were encountered in hole LRGG-19-059 with 0.94 g/t Au and 134 g/t Ag (2.72 g/t AuEq) over 11m, including 1.95 g/t Au and 277 g/t Ag (5.65 g/t AuEq) over 3.5m; and hole LRGG-19-60 with 0.32 g/t Au and 66 g/t Ag (1.19 g/t AuEq) over 16m, including 83 g/t Au and 162 g/t Ag (2.98 g/t AuEq) over 3m. Hole LRGG-19-57 was drilled at the Main area and intersected 0.91 g/t Au and 131 g/t Ag (2.65 g/t AuEq) over 14.1m, including 2.14 g/t Au and 253 g/t Ag (5.50 g/t AuEq) over 5.3m. GoGold completed in Mid-October 2019, a phase 1 drilling program which consisted of 10,000m, and has already started a second phase of drilling, adding a third rig  machine to the program.

ON MINING

  • Alio Gold Inc., continued with processing of low grade stock pile at its san Francisco mine in Sonora, resulting in the placement of 12.8K Oz Au on the pad. The company announced that the low grade stock pile will be exhausted in Q4, 2019, after which crushing will cease, and operations will solely focus on recovery of the residual inventory ounces.
  • Argonaut Gold Inc., presented Q3, 2019 production and financial results from its Mexican operations. The company produced 44.7K Oz AuEq at a cash cost of USD $901 per Oz Au produced and sold 45.6K Oz Au at an AISC of USD $1,134 per Oz Au sold. It also reported revenue for USD $66.8, cash flow from operating activities before changes in operating working capital of USD $17.2M, net income of USD $4.9M, adjusted net income of USD $6.5M, and a net cash increase of USD $11.7M. Argonaut also reported mine by mine production results for the period Q3, 2019. At El Castillo Complex in Durango, it milled 4.8M tonnes of 0.35 g/t Au to produced 30.3K Oz AuEq. At El Castillo, 2.4M tonnes of 0.39 g/t Au were milled to produce 14.3K Oz Au and 23.3K Oz Ag. This mine sold 14.6K Oz Au and 16.3K Oz Ag in this quarterly period, at a cash cost of $1,038 per Oz Au sold. At San Agustin, 2.4M tonnes were milled with a grade of 0.32 g/t Au to produce 15.2K Oz Au and 36.9K Oz Ag. This mine sold 15.7K Oz Au and 15K Oz Ag in this quarterly period, at a cash cost of $848 per Oz Au sold. At La Colorada, Sonora, the company milled 1.45M tonnes of 0.6 g/t Au, to produced 14K Oz Au and 33.6K Oz Ag. La Colorada sold 13.8K Oz Au and 34K Oz Ag at a cash cost of $800 per Oz Au sold.
  • Coeur Mining Inc., announced Q3, 2019 production and financial results from its Palmarejo mine in Chihuahua. It milled 442,464 tons of 2.8 g/t Au and 152 g/t Ag to, with a metallurgical recoveries of 81.7% and 79.6% respectively, to produce 31.8K Oz Au and 1.72M Oz Ag. Adjusted costs applicable to sales were USD $660 per Oz Au and USD $8.95 per Oz Ag. Coeur reported cash flow from operating activities of USD $36.3M and total capital expenditures of USD $7.8M for a total free cash flow of USD $28.5M.
  • Endeavour Silver Corp., reported consolidated Q3, 2019 financial and production results from its four Mexican operations: Guanacevi mine in Durango, Bolañitos and El Cubo in Guanajuato, and El Compas in Zacatecas. The company processed 234, 196 tonnes to produce 948.5K Oz Ag and 9.7K Oz Au (1.72M Oz AgEq), at a cash cost of $11.51 per Oz Ag produced and AISC of $21.53.
  • Excellon Resources Inc., reported Q3, 2019 production and financial results from its Platosa mine in Durango. The company mined 18,167 tonnes and processed 17,235 tonnes with grades of 512 g/t Ag, 4.4% Pb, and 6% Zn, to produce 257.5K Oz Ag, 1.3M Lb Pb, and 1.65M Lb Zn (427.1K Oz AgEq), at a cash cost per Oz Ag payable of $18.18 and AISC net of by-products per Oz Ag payable of $28.46. Metallurgical recoveries were 87.2%, 77.7%, and 76.5% for Ag, Pb, and Zn respectively. Excellon reported revenues for $5.9M, a net loss of $2.9M, and a net working capital of $$9.0M.
  • First Majestic Silver Corp., presented Q3 production results from its Mexican operations. The company reported revenues for $97M, a net loss of $8.6M, operating cash flow before movements in working capital and taxes of $34.6M, cash and cash equivalent of $118.6M, and a working capital of $149.2M. The below table shows the mine by mine production results:

  • Hecla Mining Company, announced Q3 production and financial results from its San Sebastian mine in Durango. It produced 541.6K Oz Ag and 3.7K Oz Au at an AISC of $$7.21 per Oz Ag.
  • Leagold Mining Corporation, produced from its Los Filos mine in Guerrero, 40,922 Oz Au at an AISC of $1,001 per Oz Au produced, and sold 41,343 Oz Au during Q3, 2019, with associated revenue of $58.6M.
  • Pan America Silver Corp., reported Q3, 2019 production and financial results from its la Colorada, Zacatecas and Dolores, Chihuahua mines. At La Colorada, the company produced 2.1M Oz Ag and 1,200 Oz Au, at a cash cost of $2.82 per Oz Ag and an AISC of $4.03 per Oz Ag. At Dolores, it produced 1.5M Oz Ag and 33.1K Oz Au, at an AISC of $7.45 per Oz.

ON FINANCING

  • Discovery Metals Corp., closed a non-brokered private placement for gross proceeds of $19M, including $5M investment from Eric Sprott, which represents 19.9% of the interest of Discovery on a non-diluted basis. Proceeds will be used to continue the exploration programs at its exploration properties (Cordero project, Chihuahua, Puerto Rico project, Coahuila).
  • Goldplay Exploration Ltd., closed a brokered private placement financing of $3M. Gross proceeds will be used to continue resource expansion drilling including underground and surface exploration on its san Marcial project in Sinaloa.
  • Solaris Copper Inc., announced its intention to undertake a non-brokered private placement to raise gross proceeds of up to CAD $5.5M. Gross proceeds will be used to advance permitting, exploration, and drilling activities at their projects. (La Verde project, Michoacan).
  • Advance Gold Corp., closed the first tranche of a non-brokered private placement for gross proceeds of $113K. The company will use the gross proceeds to advance its Tabasqueña project in Zacatecas.
  • Orex Minerals Inc., announced its intention to undertake a non-brokered private placement to raise gross proceeds of up to $1M. Orex will use the net proceeds to maintain its 40% share of the Sandra Escobar project in Durango and fund its 40% share of the upcoming work program, and to make the necessary payments under its option to acquire 100% of the San Luis del Cordero project, Durango, and for general corporate and capital purposes.
  • San Marco Resources Inc., revised its previously announced non-brokered private placement and now intends to rise gross proceeds for up to CAD $376.6K. It also closed subscription books for unit and flow through shares private placement for gross proceeds of CAD $40K (Chunibas project, Sonora).

ON RESOURCES AND DEVELOPMENT

  •  Capstone Mining Corp., announced high grade Cu-Ag results from 103 infill and step-out drill holes from 200 hole program at its Cozamin mine in Zacatecas. Aim of this program is more than double the current reserve base. Significant drill intersection were encountered in hole CG-19-U498 with 5.02% Cu, 0.4% Zn, and 72 g/t Ag over a true width of 12.3m, including 9.02% Cu, 0.7% Zn, and 127 g/t Ag; in hole CG-18-S381 with 7.27% Cu, 0.3% Zn, and 220 g/t Ag over a true width of 5.1m; in hole CG-18-S372 with 5.53% Cu, 0.2% Zn, and 117 g/t Ag over a true width of 20.1m, including 11.32% Cu, 0.3% Zn, and 242 g/t Ag over a true width of 6.4m.
  • Torex Gold Resources Inc., reported drilling results from its 2019 exploration program at its El Limon-Guajes complex deposit in Guerrero. The drilling program has been successful in extending mineralization 150m below current reserves at its El Limon Deep deposit. Significant mineralization was encountered in hole LDUG-039 with 15.6 g/t Au over 38m; in hole LDUG-049 with 20.9 g/t Au over 12m, and in hole LDUG-056 with 15.7 g/t Au over 16.8m. El Limon Deep deposit remains open down dip and along strike.
  • Mexus Gold US, announced that its Merrill Crowe Au recovery plant at its Santa Elena mine in Sonora is complete and operational. “The plant is capable of handling Mexus’3000 ton a week mining operation and will allow for future expansion as well”.
  • Mag Silver Corp., informed about the activities carried out at its Juanicipio project mine development in Zacatecas during Q3, 2019. The company reported that “earthmoving and foundation preparation commenced for the construction of the 4,000 tpd beneficiation plant. Mill fabrication is progressing on schedule, and both the SAG and ball mills are expected to be shipped to site early 2020. Flotation cells, processing tanks and minor process equipment pieces are starting to arrive on site. Thickener tanks and drive and rakes fabrication are well advanced. Underground development has now reached 23Km of development and continues. According to the operator, Fresnillo plc, permitting for the tailings impoundments should be completed in the fourth quarter of this year and mill construction is on track for commissioning by late 2020”.

 ON DEALS AND CORPORATE ISSUES

  • Colibri Resources Corporation, received TSX approval for its acquisition of Yaque Minerals by a CAD$ 1M payment by way of a 5-years convertible debenture bearing 2.5% annual interest and carries a $0.20 per share conversion privilege. The Yaque´s acquisition includes two projects in Sonora: El Mezquite and Jackie, located less than 10Km east of the Nicho deposit owned by Minera Alamos, which is expected to start production in 2020, with initial production of 25K-30K Oz Au per year, with a mine life of more than 6 years. El Mezquite is a 2km by 1km N-S trending hydrothermal alteration zone on silicified feldspar porphyry, with a potential Au target area of at least 600m by 300m. A 3D-IP survey was carried out on this anomalous area which resulted in the identification of chargeability and resistivity anomalies underlying the surface area of potential. 321 grab samples have been collected of which 13% returned Au values oscillating from 0.1 to 3.41 g/t Au. Jackie is located 2km south of the El Mezquite but it has seen very little exploration work to date. Some prospecting work is planned for 2020.
  • Vizsla Resources Corp., closed its previously announced option agreement on November 5, to acquire 100% interest in Panuco-Copala property in Sinaloa. Vizsla confirmed that it has previously loaned USD $700K to Canam in order to satisfy the initial payment due under the terms of the options.
  • Great Panther Mines Limited, announced the appointment of its VP Exploration and VP People & Culture (Topia mine, Durango).
  • Solaris Copper Inc., announced management changes of its team, appointed its CEO, CFO, VP Corporate Affairs and Corporate Secretary, and a new member to its Board of Directors (La Verde project, Michoacan).
  • Starcore International Mines Ltd., reported results from its annual general meeting of shareholders (San Martin mine, Queretaro).
  • Mako Mining Corp., provided a corporate update and status of its Mexican operation. At its la Trinidad mine in Sinaloa, Au production is nearing conclusion, with Au sales being used to fund ongoing reclamation and severance costs. Mining and process plant equipment has been moved to USA and the lab equipment will be moved to Nicaragua soon. Mako has reported that has not been successful in receiving any insurance for damages caused by Hurricane Willa at its Trinidad mine in October, 2018. It has filed a lawsuit for over USD $7M against the Insurance Company. Mako also announced that it has reached an agreement with the primary mining contractor on the debt of approximately USD $11.3M. “Despite being ring-fenced from the rest of Mako’s corporate structure, the Company chose to settle with the contractor by making a USD $4M upfront payment and agreeing to make two additional USD $1M payments 12 months and 24 months from signing of the settlement agreement.  As this liability was being accounted for at approximately USD$11.3M, a substantial accounting gain is expected in the next quarterly report.
  • Compañía Minera Cuzcatlán , a subsidiary of Fortuna Silver Mines, analyzes to invest in a new mining plant located 40km from its San Jose mine, Oaxaca. The company asked government support to mediate between the company and the communities, since the new plant will require between USD $200-300M. The decision has to be taken next year, so they need the support of the authorities to reach a social agreement with the communities.
  • Compañía Minera Autlán, A.B .de C.V., announced its intention to raise its commitment to gold. The intention of that business and the integration towards gold was always to reach 20 to 25% of the top line and about 30 to 35% of the operating cash flow (EBITDA). In addition, the company estimates they will close this year with and investment of USD $35M to support other areas of its business, to add USD $45 M in an integrated way (Lluvia de Oro-La Jojoba, Sonora).

ON SOCIAL RESPONSIBILITY

  • Agnico Eagle Mines Limited, participated, along with the municipal presidency of Yepachi, Chihuahua, in the reconstruction of the drinking water system for this community. Yepachi is the second largest community in this area and has years of lag in terms of the supply and quality of drinking water. A total of MXP $4M will be invested, an amount that will be contributed by 50% by the municipal presidency and the other part will be borne by Agnico Eagle, which operates within the territory of the Yepachi Ejido.
  • Argonaut Gold Inc., has participated in several programs with the communities where the company operates. At La Colorada, Sonora, Argonaut signed a health collaborative agreement with the Centro de Rehabilitación Integral Teletón and hosted a cultural event with the Cultural Institute of Sonora. In Durango, participated in collaboration with the local government in an interactive learning pavilion where local attendees and families could know about the company´s mining activities and projects. It also sponsored an international forum on geological and mining heritage organized by the Universidad Autónoma de Baja California Sur, to discuss possible historical tourism and ecotourism in mining communities. Finally, Argonaut hosted students’ interactive workshops in the municipality of Dolores, Hidalgo in the village of san Anton in Guanajuato, Mexico, and hosted a soprano singer and the Latin American quartet at the Mining Cultural Centre of the Mexican chamber of commerce in Mexico City.

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

On the picture above, a Mn oxides-calcite fault vein-bx structure from a prospect in Chihuahua, Mexico.  Photo by Miguel A Heredia.

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

Chalcedonic quartz breccia

By Miguel A Heredia

During the forty-one week of the year (October 7th to October 13th, 2019), at least 29 press releases were announced by companies working in Mexico, with eight communicating production results, seven announcing financial rounds, five informing on exploration results, three commenting on Mexican issues, three reporting on resources and developments of their projects, two disclosing deals and corporate issues, and one notifying on social responsibility.  ON MEXICO ISSUES, Newmont-Goldcorp confirmed that the illegal blockade of its Peñasquito mine in Zacatecas was lifted on October 8, 2019. ON EXPLORATION, In Sonora, Azure released high grade results from 21 dump samples at its Alacran project, and announced the identification of five new targets.  In Chihuahua, Sable completed a ground geophysical survey at its Vinata project, and the Pan American-Radius JV announced the commencement of the phase 3 exploration work on its Amalia project. In Durango, Chesapeake provided updated results from its on-going regional exploration program near its Metates project. In Zacatecas, Advance Gold initiated the second phase of a geophysical survey on its Tabasquena project. ON MINING, Newmont-Goldcorp, Coeur, Consolidated Zinc, Endeavour, GoGold, Great Panther, Hecla, and US Antimony presented Q3, 2019 production results from their Mexican operations. ON FINANCING, Advanced Gold announced its plan to rise up to $250K through a non-brokered private placement (Tabasquena project, Zacatecas). Discovery Metals announced its intention to complete a non-brokered private placement for gross proceed of up to $17M (Cordero deposit, Chihuahua).  First Mexican announced the share cancellation, consolidation, and reinstatement of its common shares, as well as its intention to complete a non-brokered private placement for gross proceeds of up to $0.5M (Guadalupe property, Sonora). Fortuna Silver announced the closing of convertible debenture of the over-allotment option for gross proceeds of $46M (San Jose mine, Oaxaca). Goldplay announced its plan to complete a brokered private placement for gross proceeds of up to $2.5M (San Marcial property, Sinaloa).  Magellan announced agreements to convert an aggregate of $2.45M of outstanding debt obligations into a newly-created series of preferred shares of the company (San Dieguito de Arriba flotation plant, Nayarit). Vizsla received conditional approval from TSX for the acquisition of Canam Alpine Ventures LTD, and resumed trading on October 9, 2019 (Copala-Panuco project, Sinaloa). Santacruz reported that the Silva Family acquired an aggregate of 30M common shares, at a deemed price of CAD $0.05 per share for total deemed consideration of CAD $1.5M (Veta Grande project, Zacatecas). ON RESOURCES AND DEVELOPMENT, SilverCrest announced expansion drill results and the discovery of a new vein at its Las Chispas project in Sonora. Mexus Gold reported that the Merrill-Crow Au recovery plant for its Santa Elena mine in Sonora is en route. Mexican Gold presented a new NI 43-101 resource estimate for its Las Minas project in Veracruz. US Antimony informed that the fencing of the tailings pond, completion of the water well, and most of the major construction has been completed at its Puerto Blanco mill for its Los Juarez mine in Queretaro. ON DEALS AND CORPORATE ISSUES, Canuc completed its final payment for the El Tule 1 claim at its San Javier project in Sonora. Santacruz completed the acquisition of Carrizal Mining and reported that the Silva Family acquired an aggregate of 30M common shares.    ON SOCIAL RESPONSIBILITY, Alamos Gold received the corporate social responsibility (CSR) best practices award, for its achievements in social, economic and environmental sustainability (Mulatos mine, Sonora).

 ON MEXICO ISSUES

  • Newmont-Goldcorp Corporation, confirmed that the illegal blockade of its Peñasquito mine in Zacatecas was lifted on October 8, 2019, however, operations remain temporarily suspended pending to further assurances. “The company continues to work closely with the federal and state governments toward a sustainable, long-term solution, and lifting of the blockade paves the way for the government-sponsored dialogue to resume”.

ON EXPLORATION

  • Azure Minerals Limited, released high grade results from samples collected from 21 dumps that surround some of the historical old workings in the southeast area of its Alacran project in Sonora, and announced the identification of five new targets. This sampling returned very high grades with maximum values of 3,675 g/t Ag, 24.1 g/t Au, 2.3% Cu, 33.5% Pb, and 21.0% Zn. 10 samples returning values greater than 1,000 g/t Ag (average of 21 samples = 1,073g/t Ag); 17 samples returning values greater than 1.0g/t Au (average of 21 samples = 4.43g/t Au); 10 samples returning values greater than 1.0% Cu (average of 21 samples = 0.95% Cu); 12 samples returning values greater than 10.0% Pb (average of 21 samples = 14.92% Pb); and 10 samples returning values greater than 10.0% Zn (average of 21 samples = 9.28% Zn). “This first-pass sampling is very encouraging and further systematic sampling and detailed mapping of the veins will commence shortly to provide targets for follow-up trenching and drilling”.
  • Sable Resources, completed 170km of GroundMag conducted along E-W lines spaced 200m apart, and 8,950m of CSAMT surveys in nine lines at its Vinata project in Chihuahua. “The outcropping NNE epithermal vein system, which represents the main target at the project, appears coincident with a MagLow running on the western margin of the rhyolite intrusion for over 3 km in strike. Some stratigraphic features are also defined on the Mag sections; including a well-defined MagLow feature observed at the contact between the rhyolite intrusion and the interpreted limestones that underlie the upper volcanic sequence; this contact constitutes an additional potential target zone. At Vinata Sur the outcropping faults and breccias containing Fe-Mn oxides and associated Mn, Ba, Sb, As, Mo, Zn anomalies, hosted by volcanic rocks, are coincident with an elliptical shape NS oriented MagLow”. These geophysical surveys were carried out as preparation work for the first ever upcoming drilling campaign, which will consists of 2,000m to test for high-grade precious metal horizons approximately 200 metres below anomalous surface samples. This Phase 1 drill program will be expanded should positive results warrant additional drilling.
  • Pan American Silver Corp., – Radius Gold Inc JV, announced the commencement of the phase 3 exploration work on its Amalia project in Chihuahua. Pan American will operate this phase of exploration work, which will be focused on preparation and execution of the phase 3 drilling program that includes an additional 2,500m of diamond drilling.
  • Chesapeake Gold Corp., provided updated results from its on-going regional exploration program near its Metates project. “Three significant Au-Ag prospects, Crisy, San Javier and Cerro Pelon, continue to demonstrate district scale potential within different regional structural settings associated with intermediate composition intrusive rocks”. The most significant trench sampling results at Crisy prospect were 1.4 g/t Au and 75 g/t Ag over 43m; 1.9 g/t Au and 11 g/t Ag over 38m; and 2.4 g/t Au and 80 g/t Ag over 24m. At San Javier prospect, channel samples returned 1.6 g/t Au and 25 g/t Ag over 12m and 8.3 g/t Au and 1,972 g/t Ag over 1.6m. At Cerro Pelon prospect, channel samples collected on a new identified NW trending breccia yielded significant results such as 33 g/t Au over 3m, and 3.4 g/t Au over 10m.
  • Advance Gold Corp., initiated the second phase of a 3D IP survey on its Tabasquena project in Zacatecas. The goal is to explore to the south the 800m by 500m chargeability anomaly detected during the first phase IP survey, where the anomaly comes closest to surface.

ON MINING

  • Newmont-Goldcorp Corporation, reported Q3, 2019 production results from its Peñasquito mine in Zacatecas. It produced 58K Oz Au, 7.4M Oz Ag, 51.1M Lb Pb, and 83.1M Lb Zn. The illegal blockade impacted Peñasquito’s third quarter production by approximately 11K Oz Au, 1.7 M Oz Ag, 13.7 M Lb Pb and 22.8 M Lb Zn, and is expected to impact the company’s full-year results for the operation.
  • Coeur Mining Inc., presented Q3, 2019 production results from its Palmarejo mine in Chihuahua. The company milled 442,464 tonnes of 2.8 g/t Au and 152 g/t Ag, to produce 31.8K Oz Au and 1.7M Oz Ag. Metallurgical recoveries were 81.7% and 79.6% for Au and Ag respectively. Coeur announced that its full-year production guidance remains unchanged at 95K-105K Oz Au and 6.5-7.2M Oz Ag.
  • Consolidated Zinc Limited, announced production results from its Plomosas mine in Chihuahua for the period September, 2019. The company milled 1,363 tonnes with grades of 10.4% Zn, 7.5% Pb, and 32 g/t Ag, to produce 318K Lb Zn, 228.5K Oz Pb, and 1,402 Oz Ag. It also reported that 3,607 tonnes were milled and processed at the Aldama facility with grades of 10.4% Zn, 7.5% Pb, and 32 g/t Ag. The ore material processed produced high-quality clean Zn and Pb concentrates free to smelting and refining.
  • Endeavour Silver Corp., reported Q3, 2019 production results from their four Mexican operations. Consolidated production was a total of 234,196 tonnes of 144 g/t Ag and 1.49 g/t Au with metallurgical recoveries of 87.6% and 86.7% respectively, to produce 5K Oz Ag and 9.7K Oz Au. The table below shows the production figures  by separate mine:

  • GoGold Resources Inc., presented production results from its Parral tailings project in Chihuahua for the period Q3, 2019. The company produced 326.6K Oz Ag and 2,921 Oz Au (580.7 Oz AgEq).
  • Great Panther Mining Limited, announced Q3, 2019 production results from their Topia and Guanajuato mines. At Topia mine in Durango, it processed 21,761 tonnes of 0.86 g/t Au and 418 g/t Ag, with metallurgical recoveries of 4% and 93.8% respectively, to produce 344 Oz Au, 274.2K Oz Ag, 1.2M Lb Pb, and 1.5M Lb Zn (501.5K OZ AgEq). At its Guanajuato mine complex, the company processed 44K tonnes of 2.47 g/t Au and 119 g/t Ag with metallurgical recoveries of 85.4% and 85.6% respectively, to produce 3K Oz Au and 143.8K Oz Ag (383K Oz AgEq).
  • Hecla Mining Company, presented Q3, 2019 production results from its San Sebastian mine in Durango. The mill at San Sebastian operated at an average of 586 tonnes per day, to produce 0.6M Oz Ag and 4,719 Oz Au.
  • US Antimony Corporation, reported estimated sales for the period Q3, 2019 from their Mexican operations. It sold 381.7K Lb Sb, 12.5 Oz Au, and 3.4K Oz Ag.

ON FINANCING

  • Advance Gold Corp., announced its intention to rise funds up to $250K through a non-brokered private placement. Net proceeds will be used to advance its Tabasquena project in Zacatecas.
  • Discovery Metals Corp., announced its intention to complete a non-brokered private placement for gross proceeds of up to $17M, including an investment of 5M from Eric Sprott. “The balance of Mr. Sprott’s investment will be completed with the purchase of subscription receipts, which if converted, will increase his interest in the company to approximately 22%, assuming the private placement is fully subscribed (Cordero deposit, Chihuahua)”.
  • First Mexican Gold Corp., announced a number of administrative tasks that the company had to work diligently to get a reinstatement of trading of its common shares on the TSX. First Mexican cancelled 9M shares that it had issued without obtaining prior TSX approval, and then, 1M shares without TSX approval as payment to arrange a credit facility. Once this problem was solved by the director and offices of the compnay, First Mexican consolidated its common shares on a ten for one basis, reducing the number of its outstanding common shares from 81,844,360 to 8,184,429. It also announced its intention to complete a post-consolidation basis private placement for gross proceeds of up to $0.5M but TSX notified that it will be unable to complete the offering until the company shares are reinstated for trading. As such, the company has cancelled the offering and will look to complete it at a future time. First Mexican has worked diligently looking the revocation of a cease trade order issued by the various commission securities. The company finally reported that the trading of its common shares will reinstate on October 11, 2019 (Guadalupe property, Sonora).
  • Fortuna Silver Mines Inc., announced the closing of convertible debenture of the over-allotment granted to CIBC Capital Markets, Scotiabank, and BMO Capital Markets. The company sold unsecured convertible debentures for gross proceeds of USD $6M in connection with the bought deal offering completed on October 2, 2019 for gross proceeds of USD $40M, bringing the total aggregate gross proceeds to USD $46M (San Jose mine, Oaxaca).
  • Goldplay Exploration Ltd., announced its intention to complete a brokered private placement for gross proceeds of up to $2.5M. It also has granted the agent an option to increase the size of the offering by up to 20% of the number of shares. Net proceeds will be used for exploration work on its San Marcial property in Sinaloa.
  • Magellan Gold Corporation, announced agreements with its primary secured creditors and largest shareholder to convert an aggregate of $2.5M of outstanding debt obligations into a newly-created series of preferred shares of the company. The Preferred Shares will carry a $2.45 million liquidation preference, subject to adjustments, be convertible into common stock at $1.00 per share and bear a 10% annual dividend payable in kind at the option of the company. “The agreements release and reduce liens on certain assets of the company and convert portions of both its secured and unsecured debt holdings to preferred shares in order enhance the balance sheet and facilitate new financing arrangements (San Dieguito de Arriba flotation plant, Nayarit).
  • Vizsla Resources Corp., received conditional approval from TSX for the acquisition of Canam Alpine Ventures Ltd., and resumed trading on October 9, 2019 (Copala-Panuco project, Sinaloa).
  • Santacruz Silver Mining Ltd., reported that the Silva Family acquired an aggregate of 30M common shares, at a deemed price of CAD $0.05 per share for total deemed consideration of CAD $1.5M. This transaction represents approximately 14.7% of the issued and outstanding common shares of the company on a non-diluted basis and 15.3% on a partially-diluted basis assuming the exercise of the stock options owned by Mr. Silva (Veta Grande project, Zacatecas).

ON RESOURCES AND DEVELOPMENT

  • SilverCrest Metals Inc., reported the results of 31 expansion drill holes for Giovanni, Blanquita, and Las Chispas veins and the discovery of a new vein (Blanquita Dos vein) at its Las Chispas project in Sonora. The most significant expansion drill results were encountered in hole LC19-111 (Giovanni Vein) with 8.99 g/t Au and 1,424 g/t Ag (2,098 g/t AgEq) over a true width of 1.6m; hole LC19-107 (Las Chispas Vein) with 7.72 g/t Au and 1,105 g/t Ag (1,584 g/t AgEq) over a true width of 1.2m; and hole LC19-101 (Giovanni Vein), with 4.17 g/t Au and 642 g/t Ag (955 g/t AgEq) over a true width of 2.5m. These drill results confirmed that deeper mineralization which could expand the current resource estimate at Las Chispas project. SilverCrest also reported the discovery of a new vein called Blanquita Dos Vein. “The La Blanquita Dos Vein is a new near-surface discovery located in the hanging wall of the La Blanquita Vein. The most significant drill intersection encountered on this vein was in hole LC19-98 with 6.58 g/t Au and 274 g/t Ag (767 g/t AgEq) over a true width of 0.8m, including 13.1 g/t Au and 392 g/t Ag (1,375 g/t AgEq) over a true width of 0.4m. This vein is approximately 50 metres from La Blanquita and was discovered while drilling to depth for the Giovanni Vein and the Las Chispas Vein. “There are currently 18 core drills operating at Las Chispas; 16 surface and 2 underground. This includes one rig completing process plant site condemnation, 16 rigs completing in-fill and known vein expansion holes in the Babicanora Area veins, and one rig working on new vein targets in the Las Chispas Area with two more to be re-allocated after in-fill drilling completion. Approximately 80 holes for 30,000 metres remain to be completed in 2019 of which 25 to 35 holes (8,000 metres) are for the Las Chispas Area veins. An updated resource estimate, including the Las Chispas Area veins, is expected in H1, 2020, along with the ongoing feasibility study”.
  • Mexus Gold US, reported that the Merrill-Crow Au recovery plant for its Santa Elena mine in Sonora is en route, as well as a 80Kw generator which is necessary to run the plant. The company expects the new equipment to be operational by November 1st, 2019.
  • Mexican Gold Corp., presented a new 43-101 resource estimate for its Las Minas project in Veracruz. The new resource estimate as of September 12, 2019. Indicated resources are 5,457,000 tons of 1.78 g/t Au, 6.5 g/t Ag, and 1.25% Cu (3.67 g/t AuEq), for a total of 313K Oz Au, 1.15M Oz Ag, and 150.3M Lb Cu (645K Oz AuEq).  Inferred resources are 2,514,000 tons of 1.25 g/t Au, 5.5 g/t Ag, and 0.94% Cu (2.68 g/t AuEq) for a total of 101K Oz Au, 446K Oz Ag, and 51.96M Lb Cu (217K Oz AuEq).
  • US Antimony Corporation, informed that the fencing of the tailings pond, completion of the water well, and most of the major construction has been completed at its Puerto Blanco mill for the Los Juarez mine in Querétaro. Testing will proceed during the completion of the laboratory.

 ON DEALS AND CORPORATE ISSUES

  • Canuc Resources Corporation, completed its final payment to Minerales y Carbones de Mexico S.A. de C.V., for the El Tule 1 claim. Canuc has expanded its san Javier project area in Sonora State by 151.14 ha. The company now owns 17 contiguous mineral concessions along the San Javier mineralized corridor, extending to 3km from the historical Santa Rosa mine old workings.
  • Santacruz Silver Mining Ltd., completed the acquisition of Carrizal Mining S.A. de C.V., after purchasing the remaining 50% of outstanding shares of PCG Mining S.A. de C.V., which is the parent holding of Carrizal Mining S.A. de C.V, in consideration for the issue of 30M common shares of the compnay. It also reported that the Silva Family acquired an aggregate of 30M common shares, which represent approximately 14.7% of the issued and outstanding common shares of the Company on a non-diluted basis and 15.3% on a partially-diluted basis assuming the exercise of the stock options owned by Mr. Silva.

ON SOCIAL RESPONSIBILITY

  • Alamos Gold Inc., received the corporate social responsibility (CSR) best practices award, for its achievements in social, economic and environmental sustainability (Mulatos mine, Sonora).This award created by the Mexican Center for Philanthropy and the alliance for CSR was granted to Minas de Oro Nacional, a subsidiary of Alamos Gold as its program called “A new horizon for the families of Mulatos and Matarachi” was the winner in the category of community engagement.

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

On the picture above, chalcedonic quartz breccia with disseminated pyrite in a project in Zacatecas, Mexico.  Photo by Miguel A Heredia.

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

 

Fault-bx with Mn oxides

By Miguel A Heredia

During the thirty-seven week of the year (September 09th to September 15th, 2019), at least 31 press releases were announced by companies working in Mexico, with ten informing on exploration results, ten reporting on resources and development of their projects, four announcing financial rounds, four disclosing deals and corporate issues, and one commenting on Mexican issues.  ON MEXICO ISSUES, Karen Flores was appointed as general director of the Mining Chamber of Mexico (CAMIMEX).  ON EXPLORATION, In Sonora, Aloro released drilling results from its Los Venados project, Riverside identified three targets from mapping and sampling its recently acquired Los Cuarenta project, Tamino announced its exploration expenditure guidance for 2019-2020, and Oceanus announced the commencement of the 2019 exploration program at its El Tigre project. In Chihuahua, Radius and Pan American Silver announced the commencement of the phase 3 drilling work at its Amalia project. In Durango, Gainey awarded drilling contract for its Las Margaritas project.  In Jalisco, GoGold reported drill results from its Los Ricos project, and Silver Spruce announced high grade Au assay values from surface rock sampling conducted at its Cocula project. In Veracruz, Mexican Gold discovered a new resistivity anomaly at Cinco Señores area within its Las Minas project. ON MINING, US Antimony reported estimated sales for August 2019. Consolidated Zinc announced August 2019 production from its Plomosas mine in Chihuahua.  ON FINANCING, Consolidated Zinc announced a plan to rise $3.5M via private placement and pro-rata non-renounceable rights offer (Plomosas mine, Chihuahua). Fortune announced a USD $40M bough deal financing (San Jose mine, Oaxaca), and granted an over-allotment option to purchase up to an additional USD $6M aggregate. Silver Viper increased its private placement to $4M (La Virginia project, Sonora). Defiance announced that it has applied for approval to extend by one year the expiry date of 5.75M of outstanding warrants (San Acacio project, Zacatecas).   ON RESOURCES AND DEVELOPMENT, Almaden provided an update of the progress achieved to build its Ixtaca mine in Puebla. Discovery Metals announced mobilization for a 35,000m drilling program at its recently acquired Cordero project in Chihuahua. Azure reported that Au-Ag exploration is underway on its Alacran project in Sonora. Impact released drilling results and expands at depth the San Ramon mine in its Zacualpan mining district in Mexico state.  Leagold announced drilling results from its Los Filos mine in Guerrero. Orla awarded the engineering, procurement, and construction contract for its Camino Rojo project in Zacatecas. US Antimony reported progress on its Los Juarez Au-Ag project in Queretaro.  Oroco filed a geological technical report regarding its Santo Tomas project in Sinaloa. Sonoro reported that a program of 3D modelling, mapping and sampling is underway at its Cerro Caliche project in Sonora. ON DEALS AND CORPORATE ISSUES, Almaden appointed its new VP Project Development to oversee detailed engineering and construction of its Ixtaca project in Puebla. Golden Goliath granted stock options to directors, officers, employees and consultants (San Timoteo project, Chihuahua). Golden Minerals announced termination of sale agreement with Autlan regarding the sale of certain of its Mexican properties. Millrock completed the sale of certain of their Mexican mining concessions to Riverside. ON SOCIAL RESPONSIBILITY, no relevant news.

 ON MEXICO ISSUES

  • Karen Flores, was appointed as general director of the Mining Chamber of Mexico (CAMIMEX). It will be the first time since its foundation in 1906 that CAMIMEX will be run by a woman.

ON EXPLORATION

  • Aloro Mining Corp., released drilling results from the last four holes collared in the southeastern area of its Los Venados project in Sonora for a total of approximately 1,347m drilled. The drilling intersected a felsic dome with 3-10 weight percent pyrite content in pervasive altered volcanic flow units and intrusive dome rock unit up to 200 meters thick. Assay results were discouraging showing very low grade Au, between 0.1-0.2 g/t Au, in scattered intercepts from 1.5-7.6m wide throughout the broad zone of pyritized felsic dome. No more work is planned in this area of the concession.
  • Riverside Resources Inc., completed the acquisition of Los Cuarenta project in Sonora from Millrock, where it has identified three targets. The Santa Rosalia target is the highest priority of the 3 targets and is defined by past open cut and underground vein mining where recent sampling has shown a strike length of more than 500 m and open to the east and west.
  • Tamino Minerals Inc., announced its business development plan and exploration expenditure guidance for the period 2019-2020. The plan is to identify and acquire high-quality, advanced-stage exploration projects and discover early-stages opportunities that can be strategically tested and quickly progressed to key decision point. Exploration expenditure guidance are planned to be $5M in 2019-2010, with $2M in the Amalia project, $1.2M in the El Volcan project, and $1.8M in other small exploration projects and acquisitions.
  • Oceanus Resources Corporation, announced the commencement of the 2019 exploration program at its El Tigre project in Sonora. The Company has recently mobilized the exploration team back to the property to continue prospecting and mapping, as well as, sampling in the area of the Caleigh vein. The objective of this program is to establish drill targets.
  • Radius Gold Inc., and Pan American Silver Corp., announced the commencement of the phase 3 drilling program at its Amalia project in Chihuahua. Pan American Silver intends to complete further geological mapping, re-logging of previous drill core, and drilling an additional 2,500 m as part of the phase 3 program.
  • Gainey Capital Corp., announced that it has finalized the reparation and construction of approximately 39Km of road and a water reservoir system to support its planned drilling program at its Las Margaritas project in Durango. The company received the approval from SEMARNAT to drill up to 32 targets. Gainey has already awarded the drilling contract and will commence soon a first phase of drilling comprising 2,190m to test 16 drill targets.
  • GoGold Resources Inc., released drill results from four new holes drilled at the Main Zone, and underground channel sampling results from its Los Ricos project in Jalisco. Significant intersections were encountered in hole LRGG-19-034 with 0.92 g/t Au and 177 g/t Ag (3.28 g/t AuEq) over 20.1m, including 3.41 g/t Au and 621 g/t Ag (11.68 g/t AuEq) over 4.9m; and in hole LRGG-19-035 with 1.29 g/t Au and 127 g/t Ag (2.99 g/t AuEq) over 24.4m, including 3 g/t Au and 258 g/t Ag (6.44 g/t AuEq) over 9.8m. In addition, GoGold rehabbed the historic El Troce old working where a mapping and channel sampling program was conducted. Encouraging results were obtained with grades varying from 0.98-6.8 g/t Au, and 44-492 g/t Ag over 2-3 m wide. Given the results, the company has decided to move a drill to test the targets at El Troce area.
  • Silver Spruce Resources Inc., reported high grade Au assay values from surface rock sampling conducted at its Cocula project in Jalisco. Nine out of twenty six rock chip samples recently taken from surface outcrop returned Au assay values of 0.88 g/t Au up to 12.55 g/t Au, Ag values of 13 g/t Ag up to 53 g/t Ag, and Pb values of 0.2% Pb up to 7.4% Pb. These recent sample assays continue to confirm the presence of widespread Au mineralization at surface, along with Ag and Pb values. The company also announced that it filed the first ever 43-101 technical report for its advanced Au Cocula project. Silver Spruce will continue its due diligence activities designed to support a definitive purchase decision of the property.
  • Mexican Gold Corp., discovered a new resistivity anomaly at the Cinco Señores target area in its Las Minas project in Veracruz. This notable TEM resistivity anomaly, similar in size to the El Dorado Au-Cu-Ag resource, extends more than 700m towards the Las Minillas target. The company plans to drill test this anomaly in the near future.

ON MINING

  • US Antimony Corporation, reported estimated sales for August 2019. It sold 146.6K Lb Sb and 1159 tons of zeolites. “The Company continues to take steps to reduce its costs of producing Sb products in response to the lower global sale prices.”
  • Consolidated Zinc Limited, provided August 2019 production results from its Plomosas mine in Chihuahua. The company mined 2,794 tonnes of 14% Zn, 8% Pb, and 42 g/t Ag, and processed 2,913 tonnes of 13.5% Zn, 8% Pb, and 39 g/t Ag.

ON FINANCING

  • Consolidated Zinc Limited, announced a plan to rise A$3.5M to fund the Plomosas mine operations in Chihuahua, to process the pending sale of Zn-Pb concentrate currently stockpiled, and for working capital. A$2.48M will be rised through pro-rata non-renounceable rights offer, and A$1M through a private placement.
  • Fortuna Silver Mines Inc., entered into an agreement to rise USD $40M via a bought deal financing. The company also granted an over-allotment option to purchase up to and additional USD $6M aggregate (San Jose mine, Oaxaca).
  • Silver Viper Minerals Corp., increased its private placement from $3M to $4M. The net proceeds will be used to continue exploration and development of its La Virginia project in Sonora.
  • Defiance Silver Corp., announced that it has applied for TSX Venture Exchange approval to extend by one year the expiry date of an aggregate of 5.75M of outstanding warrants exercisable at $0.45 per share (San Acacio project, Zacatecas).

ON RESOURCES AND DEVELOPMENT

  •  Almaden Minerals Ltd., provided an update to their shareholders of the progress achieved to build its precious metal Ixtaca mine in Puebla. The company reported that the waste rock and flotation tailings have low potential for metal leaching. It also reported that the mine plan considers a dry stack filtering tailings facility, and co disposal with waste rock with no tailings dam, eliminating the risk of a tailings dam failure. Almaden has received letters from INAH clearing the area for development, from PROFEPA confirming it has conducted exploration work in accordance with the environmental code, and from the authority responsible for indigenous affairs confirming that no indigenous communities are located in the mine impact area. Local community members have publicly expressed their support of the project. One key aspect to develop the Ixtaca mine was the strong support granted for over 800 people from the local community. They signed a declaration of support for the project and delivered to the environmental authorities, and a Memorandum of Understanding has been signed with local water users. The Municipality has included mining as one of its accepted investment and development activities. Based on the FS, an initial investment of USD $174M is required to generate an after-tax internal rate of return of 42% and NVP of USD $310M, using a discount rate of 5% and precious metals prices of USD $1,275/Oz Au and USD $17/Oz Ag. The project would employ over 400 people during an 11-year mine life and would also provide updated infrastructure to a highly marginalized region.
  • Discovery Metals Corp., announced mobilization to conduct a 30,000 – 35,000 m drilling program at its recently acquired Cordero project in Chihuahua. The company plans to commence it in about five weeks from now and expect to be completed in twelve months, with the focus of delineating and discovering the highest-grade phases and domains of the mineralized system, and testing new high priority targets. The company has estimated 20,000-25,000m of drilling at the Cordero deposit and 10,000m on six regional areas that require follow-up work and drill testing.
  • Azure Minerals Limited, reported that Au-Ag exploration is underway around Mesa de Plata and Loma Bonita deposits on its Alacran project in Sonora. The Mesa de Plata deposit (10.5M tonnes of 82 g/t Ag for 27.4M Oz Ag, including 1.8M tonne of 275 g/t Ag for 15.5M Oz Ag) remains open to the west but is constrained in this direction by the concession boundary. To the north and east the mineralization has been truncated by erosion, however the mineralized zone remains open to the south.  Potential for repetitions of Mesa de Plata exist further to the north, where outcropping vuggy silica forms similar-looking silicified ridges. Further exploration is planned for this area. At the Mesa Bonita deposit (5.4M tonnes of 0.9 g/t Au and 28 g(/t Ag for 150K Oz Au and 4.8M Oz Ag), the mineralized zone is constrained to the west by erosion into a valley but remains open to the north, south, east and at depth down-dip. Being open in several directions, there is good potential that further drilling will significantly increase the size of the resource.
  • Impact Silver Corp., presented drilling results from its Zacualpan project in Mexico state and extended the mineralization 50m to depth at the San Ramon mine. Significant drill intersections were encountered in hole MPZ-284-19 with 321 g/t Ag, 0.38 g/t Au, 0.19% Pb and 0.60% Zn over 2.62m true width, hole MPZ-285-19 with 1,393 g/t Ag, 2.15 g/t Au, 2.4% Pb, and 6.4% Zn over 1.58m true width and 305 g/t Ag, 0.97 g/t Au, 0.7% Pb, and 1.7% Zn over 1.38m true width, hole MPZ-287-19 with 418 g/t Ag, 0.5% Pb, and 0.5% Zn over 2.14m true width, and hole MPZ-288-19 with 214 g/t Ag, 0.9 g/t Au, 0.1% Pb, and 0.3% Zn over 1.87m true width, and 317 g/t Ag, 0.3% Pb, and 0.4% Zn over 1.22m true width. Known mineralization over the total San Ramon workings has a down dip length of over 500m. Further drilling is planned to further test the extent of this prolific zone.
  • Leagold Mining Corporation, announced drilling results from its Los Filos underground and the Guadalupe open pit mines in Guerrero. Highlights from the Los Filos underground mine include 8.86 g/t Au over 45m and 6.59 g/t Au over 15.46m. Highlights from the Guadalupe open pit include 1.4 g/t Au over 32.73m, including 7.71 g/t Au over 2.67m, and 6.2 g/t Au over 10.61m, including 10.55 g/t Au over 5.2m. The drill program at Los Filos will contribute to the reserve base and extend the mine life. At Guadalupe, the drilling program is testing for extensions of the mineralization at depth and also confirming the limited nature of old underground workings prior to open pit mining in this area.
  • Orla Mining Ltd., awarded the engineering, procurement, and construction contract for its Camino Rojo project in Zacatecas. Orla expects to begin the detailed engineering work by mid-September to build a mine that begins to produce Au in mid-2021. Au production is expected to average 97K Oz Au per year at an estimated AISC of USD $576 per Oz Au. Orla submitted permits applications to SEMARNAT for the MIA and change of land use at the end of August. The legislated timelines for the review of properly prepared MIA and change of land use applications and mine operating permits for a project that does not affect federally protected biospheres or ecological reserves are 120 working days and 105 working days, respectively, which can be completed concurrently.
  • US Antimony Corporation, announced progress on its Au-Ag Los Juarez project in Queretaro. It completed the installation of the ponder liner in the 2 hectares tailings pond and the deepening of the water well to 222m to provide more than 240 gallons per minute. “The pond and the well will be more than adequate to ramp production from 100 tons per day to 400 tons per day. Projects remaining include fencing the pond, completion of the laboratory for fire assaying precious metals, and atomic adsorption equipment for assaying Sb, Ag, and Au in the leach circuit. The mil fine ore bin has been filled with crushed ore from the mine. Initial testing could start within 30 to 60 days.
  • Oroco Resource Corp., filed a geological technical report regarding its Santo Tomas project in Sinaloa. “The report summarizes a data set now controlled by the company that comprises 90 historical drill holes totaling 21,075 m, and recommends a significant program of phased surface exploration, deep geophysical surveys, and diamond drilling that aims to verify and build upon a key new geological model and a substantial body of historical drilling, mineral resource estimates, and pre-feasibility studies. The Report provides the company with a current, technical foundation upon which to advance the Santo Tomás project by confirming the technical analysis of the mineralization on the property”.
  • Sonoro Metals Corp., reported that a program of 3D modelling, mapping and sampling is underway at its Cerro Caliche project in Sonora. It also launched a phase 3 drilling program to test the Veta de Oro, La Espanola, Cuervos and Guadalupe/Cabeza Blanca zones, where previous scout holes reported intervals of high-grade vein Au mineralization. “The program is a continuation of the company’s strategy of systematically exploring Cerro Caliche as it concurrently advances its proposed heap leach pilot operation (HLPO). Drilling to date continues to outline shallow, bulk tonnage Au mineralized zones with grades similar to operating heap leach mines in the region”.

ON DEALS AND CORPORATE ISSUES

  • Almaden Minerals Ltd., appointed its new VP Project Development to oversee detailed engineering and construction of its Ixtaca project in Puebla.
  • Golden Goliath Resources Ltd., granted 3M stock options to directors and officers, and 400K to employees and consultants. The incentive stock options are exercisable for a period of five years at a price of $0.10 (San Timoteo project, Chihuahua).
  • Golden Minerals Company, announced termination of sale agreement with Compañia Minera Autlan S.A.B. de C.V., regarding the sale of certain of its Mexican properties. The CEO of Golden informed that unfortunately they could not come to terms with Autlan and now they are in position to consider future options for the properties that were included in the Autlan agreement (Velardeña and Rodeo in Durango, and Santa Maria project in Chihuahua).
  • Millrock Resources Inc., completed the sale of five of their Mexican properties to Riverside Resources Inc. La Union, Los Cuarenta, El Pima, El Valle and Llano del Nogal, all located in Sonora state, were the mineral concessions sold to Riverside along with a copy of its exploration database and various exploration equipments and vehicles. Consideration paid to Millrock is $35K cash and 300K Riverside shares. Additionally, Riverside will grant a 0.5% NSR royalty on the El Pima and El Valle claims, and in the event that Riverside exercises the option on Santa Rosalia (Los Cuarenta project), it will grant a 0.5% NSR royalty on that claim to Millrock.

ON SOCIAL RESPONSIBILITY

  • No relevant news

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

On the picture above, a fault-bx with Mn oxides in a prospect in Chihuahua, Mexico.  Photo by Miguel A Heredia.

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

 

Rhyolite breccia cemented by Mn oxides

By Miguel A Heredia

During the eleven week of the year (March 25th to March 3ist, 2019), at least 33 press releases were announced by companies working in Mexico, with fifteen disclosing deals and corporate issues, six informing on exploration results, four communicating financial and production results, three announcing financial rounds, three reporting on resources and development of their properties, and two discussing Mexican news. ON MEXICO ISSUES, Mazatlan, Sinaloa will be the venue for the Discovery Mining Conference 2019 from April 2 to 4. Also, Sinaloa State government expects at least US$100M of mining investment during 2019.   ON EXPLORATION, In Sonora, Colibri presented exploration results on its Evelyn and Mezquite projects. In Chihuahua, Kootenay released exploration results from its Columba Silver project and Silver Spruce identified additional drill targets at its Pino de Plata project. In Zacatecas, Advanced Gold started the third phase of drilling at its Tabasqueña project. In the State of Mexico, Impact announced drill results from the El Canelo Vein system within its Zacualpan district project. In Veracruz, Azucar Minerals presented drill results from its El Cobre project.  ON MINING, Telson reported that process testing at its Campo Morado mine in Guerrero shows increase in the production rate by 15%. Sierra Metals reported full year 2018 financial results. First Majestic reported 2018 production results from its Mexican operations. ON FINANCING McEwen closed a registered direct offering for aggregate gross proceeds of US$25M (Fenix project, Sinaloa).  Vangold closed its first tranche of the previous announced private placement for gross proceeds of $335K and increased it to $700K (El Pinguino, Guanajuato). ON RESOURCES AND DEVELOPMENT, Mexus Gold announced positive progress towards Au production at its Santa Elena project in Sonora. Goldplay filed a mineral resource estimation and technical report for its san Marcial project in Sinaloa. First Majestic provided an update of its 2018 mineral reserve and resource estimates.   ON DEALS AND CORPORATE ISSUES, Odyssey provided an update of its Mexican phosphate project in Baja California Sur. In Jalisco, GoGold acquired and consolidated 29 mining concessions in a large exploration program called Los Ricos. Fortuna Silver reported that CONAGUA has completed its investigation and issued a resolution confirming that no remediation of the nearby Coyote Creek is required (San Jose mine, Oaxaca).  The compnay also filed its fiscal 2018 annual report on form 40-F with the SEC. Minera Alamos filed its annual information form and 2018 annual report on Form 40-F. It also announced results of its annual meeting of shareholders (Mulatos mine, Sonora). GoGold announced results of their annual meeting of shareholders (Parral tailings project, Chihuahua). Consolidated Zinc provided an update regarding a land use agreement in place for its Plomosas mine in Chihuahua. Levon announced the pass away of its CEO and appointed its VP Exploration as interim CEO (Cordero project, Chihuahua). Newmont received Mexican anti-trust approval for its pending acquisition of Goldcorp. Goldcorp, along with Institutional Shareholders Services Inc., continues to recommend that its shareholders vote in favour of the completion of the arrangement. Both companies also announced successful early tender period for exchange offers and consent solicitations. Goldcorp announced support for Newmont special dividend to its shareholders. Great Panther announced resignation of its Director (Topia mine, Durango).

 

ON MEXICO ISSUES

  • Mazatlan, Sinaloa, will be the venue for the Discovery Mining Conference 2019 from April 2 to 4. Organizers expect the participation of 70 mining companies and the assistance of 1,000 national and foreigners’ people.
  • Sinaloa State, When announcing Mazatlan as the venue for the Discovery Mining Conference 2019, from April 2 to 4, the director of mining in the state, Alfredo Villegas Padilla, announced that this year at least US100M (MXP$1,937M) are expected in mining investment, both in new projects and in the continuity of some existing ones.

ON EXPLORATION

  • Colibri Resource Corporation, presented exploration results from its recently completed mapping and sampling programs on their Evelyn and Mesquite projects in Sonora. Highlights include two high grade assays of 43.9 g/t Au and 7.28 g/t Au, and several Au values varying from 0.13 to 0.57 g/t Au, from a shear zone containing orogenic type quartz veins at its Evelyn project. At El Mesquite project, the company geologists confirmed that the mineralization style is of the high sulphidation affinity and encountered Au values ranging from 17 ppb up to almost 1 g/t Au, and from 1 to 152 g/t Ag. Colibri plans to continue the mapping and sampling programs in both properties.
  • Kootenay Silver Inc., released exploration results from its ongoing mapping and surface sampling program conducted on its Columba Silver project in Chihuahua. Highlights of the recent field work include the discovery of five new veins, the high-grade values encountered in some of the veins, and the delineation of approximately 2km of strike length in new veins and veins extensions. Some of the significant sampling results are 692 g/t Ag over 0.8m, 426 g/t Ag over 0.70m, 360 g/t Ag over 1.8m, 330 g/t Ag over 2.0m, 275 g/t Ag over 3.5m, 215 g/t A over 3.0m, and 182 g/t Ag over 6.6m. The company is in the process of obtaining permits to conduct a drilling program in the first half of Q2, 2019.
  • Silver Spruce Resources Inc., identified additional drill targets at its Pino de Plata project in Chihuahua. Field examination conducted by geologists of the company identified a new zone of over 20 square kilometers of strongly altered rock located to the west of the El Terrero target. It appears to be associated with La Perla Vein and the historic El Terrero workings. Currently, the geological field crews are using a portable XRF (x-ray fluorescence) analyzer and a near-infrared spectrometer to obtain immediate indications of mineralization, pathfinder elements and associated alteration. Several sample lines will be tested on outcrops and soils with the handheld instruments as an orientation survey prior to detailed data collection on a grid pattern.
  • Advanced Gold Corp., announced that a phase 3 drilling program is ongoing at its Tabasqueña property in Zacatecas. ”Two targets are planned to be drilled during this program, one is a near surface target and the other deeper to test the boiling zone of the cluster of epithermal veins drilled in the two earlier phases of drilling”. Focus of the phase 3 drilling program is to drill deeper to target the boiling zone of the epithermal vein system
  • Impact Silver Corp., announced results of the initial six holes program drilled on the El Canelo Vein within its Zacualpan district project in the State of Mexico. Four of the six holes encountered encouraging mineralized intersections. Significant intercepts are in hole Z19-01 with 4.84 g/t Au, 24 g/t Ag, and 0.1% Cu (5.27 g/t AuEq) over 2.69m (TW); hole Z19-03 with 1.64 g/t Au, 39 g/t Ag, and 0.93% Cu (3.46 g/t AuEq) over 1.17m (TW), and hole Z19-04 with 1.01 g/t Au, 99 g/t Ag, and 0.97% Cu (3.61 g/t AuEq) over 0.35m (TW).
  • Azucar Minerals Ltd., presented drill results from El Porvenir and Suegro zones within its El Cobre project in Veracruz. El Suegro target is located 250m south of El Porvenir Zone, and the mineralization is associated with an altered intrusive displaying locally intense phyllic alteration overprinting potassic alteration. Significant drill intersections at El Porvenir Zone were encountered in hole EC-18-056 with 184m of 0.48 g/t Au and 0.16% Cu, including 72.50m of 0.99 g/t Au and 0.26% Cu, and 28.50m of 1.66 g/t Au and 0.33% Cu, and in hole EC-18-062 with 194.55m of 0.23 g/t Au and 0.16% Cu, including 47.25m of 0.44 g/t Au and 0.16% Cu, and 36m of 0.49 g/t Au and 0.17% Cu. At the Suegro Zone, significant drill intersections were encountered in hole EC-18-064 with 109.30m of 0.24 g/t Au and 0.13% Cu, including 3m of 0.93 g/t Au and 0.43% Cu, and in hole EC-18-06 with 130.50m of 0.16 g/t Au and 0.15% Cu, including 13m of 0.26 g/t Au and 0.17% Cu. “The newly discovered Suegro zone demonstrates the potential for multiple porphyry centers over a five kilometers strike”.

ON MINING

  • Telson Mining Corporation, reported that a significant increase in production at its Campo Morado mine in Guerrero can be achieved by reducing the size of crushed mineral mill feed. With this, Telson plans to increase the SAG Mill throughput processing rate by at least 15%.
  • Sierra Metals Inc., presented full year 2018 financial results from its mining operations. The company had revenue of $232.4M and adjusted EBITDA of $89.8M on throughput of 2,325,288 tonnes and metal production of 2.72M Oz Ag, 33.9M Lb Cu, 27.7M Lb Pb, 76.8M Lb Zn, and 7,743 Oz Au or 18M Oz AgEq, 95.2M Lb CuEq, and 251 M Lb ZnEq for the year 2018.
  • First Majestic Silver Corp., announced 2018 production results of its Mexican operations. The next table shows figures by mine:

ON FINANCING

  • McEwen Mining Inc., closed a registered direct offering for aggregate gross proceeds of US$25M. Insiders of the company, including Rob McEwen subscribed for US$3M of the offering (Fenix project, Sinaloa).
  • Vangold Mining Corp., closed its first tranche of the previous announced private placement for gross proceeds of $335K. It also increased it private placement to $700K (El Pinguino, Guanajuato

 

ON RESOURCES AND DEVELOPMENT

  • Goldplay Exploration Ltd., filed a mineral resource estimation and technical report for its San Marcial project in Sinaloa. “The report documents a maiden mineral resource estimate for the initial 500 m long x 100 m wide resource area, part of a 3.5 km mineralized exploration corridor at the San Marcial Project”. Indicated resources are 7.6M of tonnes at grades of 117 g/t Ag, 0.5% Zn, and 0.3% Ob (or 147 g/t AgEq) containing 29M Oz Ag, 86M Lb Zn, and 53M Lb Pb or 36M Oz AgEq. Inferred resources are 3.39M tonnes of 91 g/t Ag, 0.35% Zn, and 0.1%Pb (or 108 g/t AgEq) containing 10M Oz Ag, 26M Lb Zn, and 8M Lb Pb or 12M Oz AgEq.
  • Mexus Gold US, announced positive progress towards Au production at its Santa Elena project in Sonora. The company has already purchased a CAT front end loader and a Gardner Denver hydraulic track mounted blast drill. It also confirmed that the company has sufficient ore grades to begin a 3500 ton per week mining operation with expected grades of 4 grams Au per ton.
  • First Majestic Silver Corp., updated its mineral reserve and resource estimates as of December 31, 2018. Figures by mine are showed in the next tables:

ON DEALS AND CORPORATE ISSUES

  • Odyssey Marine Exploration Inc., provided an update of its Mexican phosphate project in Baja California Sur. The company has advised that a legal step has been taken to defend shareholder interests and realize the full economic value in the development of the project due to the negative decision of the past administration of Mexico to authorize the development of its project. Odyssey has filed a claim against Mexico under Chapter eleven of NAFTA.
  • GoGold Resources Inc., signed an option agreement to acquire and consolidate 29 mining concessions in a large exploration program called Los Ricos in Jalisco. The consolidated area covers 22,000 ha and is located approximately 100km NW of Guadalajara City. As part of the option agreement to consolidate the concessions of this large-scale exploration property, the Company will make an upfront payment of $70K, monthly payments of $12K for the first 12 months, monthly payments of $20K for months 13 to 24, monthly payments of $30K for months 25 to 36, monthly payments of $31.5K for the months 37 to 60. It also includes a 2% NSR on five of the concessions. If the company elects to exercise the option, a lump sum payment not to exceed $11 million can be made at any time within the six year option period.
  • Fortuna Silver Mines Inc., reported that CONAGUA has completed its investigation and issued a resolution on the overflow of the contingency pond at the dry stack tailings facility at its San Jose mine in Oaxaca. CONAGUA confirmed that no remediation of the nearby Coyote Creek is required but the company received a fine of approximately $US42K related to the incident. On the other hands, it also filed its fiscal 2018 annual report on form 40-F with the SEC.
  • Alamos Gold Inc., filed its annual information form and 2018 annual report on Form 40-F. It also announced results of its annual meeting of shareholders (Mulatos mine, Sonora).
  • GoGold Resources Inc., announced results of their annual meeting of shareholders (Parral tailings project, Chihuahua).
  • Consolidated Zinc Limited, announced that a local rancher with which the company has a land use agreement commenced legal proceedings against the Mexican subsidiary that owns the Plomosas mine in Chihuahua, to terminate the agreement. Legal advises received by the company determined there was no basis for the proceedings.
  • Levon Resources Ltd., announced the pass away of its CDEO and appointed its VP Exploration as interim CEO (Cordero project, Chihuahua).
  • Newmont Mining Corporation, received the Mexican anti-trust approval for its pending acquisition of Goldcorp Inc. Goldcorp, along with Institutional Shareholders Services Inc., continues to recommend that its shareholders vote in favour of the completion of the arrangement. Both companies also announced successful early tender period for exchange offers and consent solicitations. Goldcorp announced support for Newmont Special Dividend to its shareholders. The dividend delivers value to existing Newmont shareholders with an immediate cash payment for a portion of the synergy potential arising from the Nevada joint venture announced with Barrick Gold Corporation.
  • Great Panther Mining Limited, announced resignation of its Director (Topia mine, 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 picture above, a rhyolite breccia cemented by Mn oxides in a prospect in Chihuahua, Mexico.  Photo by Miguel A Heredia.

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

 

Large barite crystals

By Miguel A Heredia

During the nine week of the year (March 11th to March 17th, 2019), at least 33 press releases were announced by companies working in Mexico, with eight announcing financial rounds, seven communicating financial and production results, six informing on exploration results, six disclosing deals and corporate issues, four reporting on resources and development of their properties, and 2 discussing Mexican news. ON MEXICO ISSUES, Compañía Minera Cuzcatlán recognized the contribution of women in mining and declared it is committed to continue promoting its inclusion. Ternium re-activated the ore transport from its Aquila mine in Michoacan after the highway was blocked by an indigenous community for 16 days.  ON EXPLORATION, In Sonora, Aztec Minerals reported positive metallurgical results from its Cervantes project. In Chihuahua, Sable released drilling results from its Margarita project. In Coahuila, Prize Mining announced plans for the next phase of exploration at its Manto Negro project. In Sinaloa, e-Power staked three new mining claims. In Zacatecas, Excellon reported drilling results from its Evolution project.  ON MINING, Alio, Consolidated Zinc, Fortuna, Impact, Leagold and Starcore presented production results from their Mexican mining operations for the periods Q4 and full year 2018.  ON FINANCING, Aura announced that is undertaking a non-brokered private placement to raise up to $0.5M (East Taviche project, Oaxaca).  Defiance closed the first tranche of its non-brokered private placement for $1,229,500. Mexican Gold closed the final tranche of its non-brokered private placement for $2,143,000 (Las Minas project, Veracruz). McEwen announced its voluntary termination of the equity distribution agreement to offer shares from its common stock. Vangold has arranged a non-brokered private placement for gross proceeds of up to $0.5M, and announced a shares consolidation plan (Pinguino project, Guanajuato). Xtierra announced its intention to raise up to $1M by way of a non-brokered private placement (Bilbao project, Zacatecas). Sierra Metals closed a senior secured corporate credit for up to US$100M (Cusi mine, Chihuahua).  ON RESOURCES AND DEVELOPMENT, SilverCrest updated mineral resource estimate for its Las Chispas project in Sonora, effective February 8, 2019.  Orla Mining reported that it is advancing its Camino Rojo Oxide project in Zacatecas towards a construction decision.  Leagold announced a mine expansion FS for its Los Filos mine in Guerrero. Telson released significant assay results from underground development at its Tahuehueto mine in Durango. ON DEALS AND CORPORATE ISSUES, Aura appointed new CEO, entered in a definitive agreement with Minaurum on its East Taviche project in Oaxaca, and the shareholders approved the change of name to Aura Resources Inc.  Coeur appointed former Nevada Governor to its Board of Directors (Palmarejo mine, Chihuahua). Mako Mining announced the resignation of its CEO and the appointment of its interim replacement (La Trinidad mine, Sinaloa). Tamino announced that it has retained the services of an experienced consultant geologist (El Volcan project, Sonora). Goldcorp announced fully support for the Nevada JV between Barrick and Newmont. Southern Copper showed interest to invest in a lithium project in Sonora.

 ON MEXICO ISSUES

  • Minera Cuzcatlán S.A. de C.V., the Mexican subsidiary of Fortuna Silver Mines Inc., recognized the contribution of women in mining and declared it is committed to continue promoting its inclusion.
  • Ternium, re-activated the ore transport from its Aquila mine in Michoacan after a group of indigenous people from the community of Santa Maria Ostula blocked the Mexican Federal Highway # 200 for 16 days.

ON EXPLORATION

  • Aztec Minerals Corp., and Kootenay Silver Inc., announced positive bottle roll gold metallurgical results from its Cervantes project in Sonora. Drill core samples were grouped into 4 separate types of mineralization: oxide 1, oxide 2, mixed oxide/sulphide, and sulphide, showing metallurgical recoveries of 85.1%, 87.7%, 77.9%, and 51.2% respectively on 2mm material, and 94.3%, 94.2%, 89%, and 78.5% on 75 micron material.
  • Sable Resources, released drilling results from holes M-DDH-19-18 and M-DDH-19-19 from its Margarita project in Chihuahua. Hole M-DDH-19-18 intersected 71 g/t Ag and 0.13% Zn (80 g/t AgEq) over 30.8m, including 174 g/t Ag and 0.15% Zn (186 g/t AgEq) over 3.7m, and 171 g/t Ag, 0.4% Pb, and 0.12% Zn (199 g/t AgEq) over 1.55m, while hole M-DDH-19-19 intersected 24 g/t Ag, 0.08% Pb, and 0.3% Zn (44 g/t AgEq) over 55m, including 94 g/t Ag, 0.3% Pb, and 2.4% Zn (238 g/t AgEq) over 2.05m. “The mineralized Margarita structure can now be traced continuously with drillholes for 1,400m along strike including a central core of high-grade veins and silicified fault zones surrounded by a wide, close to surface, low-grade Ag halo, hosted by silicified and fractured volcanic rocks.”
  • Prize Mining Corporation, announced plans for the next phase of exploration at its Manto Negro project in Coahuila “to further define the scale, grade, and potential of this district scale property”. The plan is to locate structural and geological traps where there is increase thickness in mineralization to test them with a 3,000 to 5,000 m core drilling program. “Following positive results, metallurgical testing will be completed as well as 3D interpretation on key areas”.
  • e-Power Metals, staked three new mining claims totaling 4,400 ha, located south of the Company´s high grade Magenta Au-Ag-Co project, where historical sampling on veins and skarn style deposits at the La Prieta old showings have returned results of 180.4 g/t Au, 202 g/t Ag, and 5.54% Co over 0.61m in Zone # 1; 194 g/t Au, 203 g/t Ag, and 8.14% Co from an adit dump; and 8.1 g/t Au, 53 g/t Ag, and 3.27% Co over 0.5m in Zone #2.
  • Excellon Resources Inc., reported first drilling results since 2010 from its Evolution property in Zacatecas. Significant drilling results are in hole EX18MAZ-251 with 22 g/t Ag, 0.4% Pb, 1% Zn, and 0.1 g/t Au (101 g/t AgEq) over 154m, including 188 g/t Ag, 4.4% Pb, 2.9% Zn, and 0.1 g/t Au (532 g/t AgEq) over 2.4m, and 48 g/t Ag, 0.7% Pb, 2.8% Zn, and 0.1 g/t Au (238 g/t AgEq) over 7m; hole EX18MAZ-253 with 14 g/t Ag, 0.3% Pb, 0.7% Zn, and 0.1 g/t Au (70 g/t AgEq) over 219m, including 70 g/t Ag, 1.3% Pb, 2.2% Zn, and 0.4 g/t Au (274 g/t Ag) over 12.6m; hole EX18MAZ-257 with 175 g/t Ag, 4.3% Pb, 5.4% Zn, and 0.4 g/t Au (663 g/t AgEq) over 3.4m; and hole EX18MAZ-258 with 64 g/t Ag, 1.4% Pb, 2.2% Zn, and 0.3 g/t Au (259 g/t AgEq) over 24.9m.

ON MINING

  • Alio Gold Inc., presented Q4 and full year 2018 production results from its San Francisco mine in Sonora. Alio produced 10.3K Oz Au and 4.2KOz Ag in Q4 2018 at AISC of $1,558 per Oz Au produced. Alio produced 54K Oz Au and 24.8K Oz Ag in 2018 at AISC of $1,258 per Oz.
  • Consolidated Zinc Limited, provided February 2019 production results from its Plomosas mine in Chihuahua. It reported 4,158 tonnes processed with Zn recoveries of 89% to Zn concentrates. Consolidated Zinc mined 3,873 tonnes of 9.6% Zn and 2.7% Pb to produce 815.4K Lb Zn and 235.2K Lb Pb.
  • Fortuna Silver Mines Inc., released Q4 and full year 2018 financial and production results from its San Jose mine in Oaxaca. It reported Q4 sales of $59.6M, net income of $2.2M, adjusted net income of $4.4M, and adjusted EDITDA of $22.7M. For the full year 2018 Fortuna reported sales of $263.3M, net income of $34M, adjusted net income of $38.4M, and adjusted EBITDA of $113.9M. The company milled 256,181 tonnes of 1.58 g/t Au and 230 g/t Ag to produce 11.8K Oz Au and 1.72M Oz Ag with metallurgical recoveries of 91% for both metals. Fortuna also reported an AISC of $7.1 for Oz Ag or $9.9 for Oz AgEq.
  • Impact Silver Corp., announced its financial and operating results for Q4, 2018. It reported $13.1M in revenues for 2018. Impact milled 173,217 tonnes of 170 g/t Ag to produce about 947K Oz Ag.
  • Leagold Mining Corporation, presented financial and production results from its Los Filos mine in Guerrero for the period Q4 and full year 2018. It reported revenues of $376.5M, and an adjusted EBIDTA of $89.5M for the full year 2018.Leagold produced 58,201 Oz Au in Q4 and 195,362 Oz Au for the full year 2018 at an AISC of $985 per Oz Au sold.
  • Starcore International Mines Ltd., announced financial and production results from its san Martin mine in Queretaro for the Q3 period ended January 31, 2019. It reported revenues of $6.6M and an EBIDTA of $335M for the nine months ended January 31, 2019. Starcore milled 71,100 tonnes of 1.8 g/t Au and 33 g/t Ag to produced 3.4K Oz Au and 46.2K Oz Ag (4K Oz AuEq).

ON FINANCING

  • Aura Minerals Inc., announced that is undertaking a non-brokered private placement to raise up to $0.5M.
  • Defiance Silver Corp., closed the first tranche of its non-brokered private placement for $1,229,500. The first tranche is part of the non-brokered private placement for total gross proceeds of $4M (San Acacio, Zacatecas).
  • Mexican Gold Corp., closed the final tranche of its non-brokered private placement for $2,143,000. Gross proceeds will be used on its Las Minas project in Veracruz.
  • McEwen Mining Inc., announced its voluntary termination of the equity distribution agreement on March 13, 2019 to offer shares from its common stock from time to time for up to $90M (Fenix project, Sinaloa).
  • Vangold Mining Corp., has arranged a non-brokered private placement for gross proceeds of up to 0.5M. It also announced a consolidation of their shares in which the company will trade 2 old shares for 1 new share (Pinguino project, Guanajuato).
  • XTierra Inc., announced its intention to raise from a non-brokered private placement up to $1M. (Bilbao project, Zacatecas).
  • Sierra Metals Inc., closed a six year senior secured a corporate credit facility for up to US$100M effective on March 08, 2019 (Cusi mine, Chihuahua).

ON RESOURCES AND DEVELOPMENT

  • SilverCrest Metals Inc., updated mineral resource estimate for its Las Chispas project in Sonora, effective February 8, 2019. The infill drilling program at Las Chispas has delineated an initial indicated mineral resource estimate of 1M tonnes of 6.98 g/t Au and 711 g/t Ag (1,234 g/t AgEq), containing 39.8M Oz AgEq. Inferred mineral resource are estimated at 3.6M tonnes of 3.32 g/t Au and 332 g/t Ag (581 g/t AgEq), containing 68.1M Oz AgEq.
  • Orla Mining Ltd., filed a PEA amended technical report on its Camino Rojo project in Zacatecas. “The PEA supports a technically simple open-pit mine and heap-leach operation that offers low capital and operating costs, rapid payback, and strong financial performance. The PEA is based on near-surface oxide and partly oxidized (transitional) material within the overall resource, all located within Orla’s mineral concessions”. Highlights of the PEA are a pre-tax NPV (5%) of USD$231 and an IRR of 38.1% or after-tax NVP (5%) of USD$121M and an IRR of 24.5%; production rate per day of 18K tonnes; total material to leach pad of 42.5M with grades of 0.71 g/t Au and 13.6 g/t Ag (966K Oz Au and 18.5M Oz Ag contained) with metallurgical recoveries of 67% and 15% respectively; and an annual gold production of 97.5K Oz Au. It also reported that it is advancing its project towards a construction decision later this year and ensuring the company remains on track with the development of its first mine. Orla is also advancing the feasibility study on its Camino Rojo project which is expected to be completed by the end of Q3, 2019. Construction is expected to start during H2, 2020 following receipts of all necessary permits.
  • Leagold Mining Inc., announced a mine expansion FS in March 2019 which incorporates “the potential for developing the Bermejal underground mine, enlarging the Los Filos open pit mine, re-phasing the Bermejal open pit into two distinct sections (Bermejal and Guadalupe), and building a 4,000 tonne per day (tpd) carbon-in-leach (CIL) plant to complement the existing heap leach facilities”.
  • Telson Mining Corporation, released significant assay results from underground development on the Creston Zone at its Tahuehueto mine in Durango. Significant channel sampling results are 8.48 g/t Au, 104 g/t Ag, 0.85% Cu, 5.8% Pb and 11% Zn (20.9 g/t AuEq) over 4.95m; 5.66 g/t Au, 62 g/t Ag, 0.26% Cu, 3.6% Pb, and 7.4% Zn (13.24 g/t AuEq) over 3m; 8.89 g/t Au, 88 g/t Ag, 0.34% Cu, 2.3% Pb, and 6.3% Zn (15.54 g/t AuEq) over 3m; 11.87 g/t Au, 78 g/t Ag, 0.54% Cu, 2.7% Pb, and 4% Zn (17.59 g/t AuEq) over 3.35m; and 8.12 g/t Au, 134 g/t Ag, 0.44% Cu, 2.4% Pb, and 4% Zn (14.13 g/t AuEq) over 3.25m.

ON DEALS AND CORPORATE ISSUES

  • Aura Resources Inc., appointed new CEO and made changes of its Board of Directors. The company also entered in a definitive agreement with Minaurum Gold Inc., in which Minaurum can acquire an 80% interest on its East Taviche project in Oaxaca.
  • Coeur Mining Inc., appointed former Nevada Governor to its Board of Directors.
  • Mako Mining Corp., announced the resignation of its CEO and the appointment of its interim replacement (La Trinidad mine, Sinaloa).
  • Tamino Minerals Inc., retained the services of an experienced geological consultant to assist them to achieve its goals within its mining exploration projects in order to meet corporate milestones (El Volcan project, Sonora).
  • Goldcorp Inc., announced fully support for the Nevada JV between Barrick Gold Corporation and Newmont Mining Corporation.
  • Southern Copper Corp., showed interest to invest in a Canadian owned lithium project in Sonora, on which a Chinese company seems to be also interested. Southern Copper has not made an offer yet and did not reveal the name of the lithium project.

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, large barite crystals and manganese oxides in a low-intermediate sulphidation epithermal system in Chihuahua, Mexico.  Photo by Miguel A Heredia.

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

Banded quartz epithermal vein

By Miguel A Heredia

During the 37th week of the year (September 10th to September 16th, 2018), at least 22 press releases were announced by companies working in Mexico, with ten informing on exploration results, six reporting on resources and developments, four communicating deals and corporate issues, and two announcing production results.  ON MEXICO ISSUES, no relevant news.  ON EXPLORATION, In Sonora, Riverside and Kootenay announced exploration results from its Cecilia and La Mina projects respectively. In Chihuahua, Harvest Gold began preparations to drill test its Cerro Cascaron project and Sable Resources released drilling results from its Margarita project.  In Sinaloa, Auxico reported sampling results from its Zamora project In Durango, Gainey announced a 1st phase of exploration at its Las Margaritas project, Orex commenced fieldwork exploration on its San Luis del Cordero project, and Prospero reported drilling results from its Buenavista project. In Zacatecas, Advance Gold started a phase 2 drilling program at its Tabasquena project. In Jalisco, Evrim announced trench and soil results from its Cuale project.  ON MINING, Starcore reported Q1 2018 results from its San Martin mine in Queretaro. US Antimony announced plans to increase its production of Sb, Au and Ag in Mexico. ON FINANCING, no relevant news. ON RESOURCES AND DEVELOPMENT, In Sonora, SilverCrest and Premier Gold released drilling results from its Las Chispas and Mercedes projects respectively. Aura provided an update at its Aranzazu mine in Zacatecas. Candelaria announced a PEA for its Pinos Gold project in Zacatecas.   McEwen reported that hopes to add 12 years of mine life at its El Gallo Complex in Sinaloa.  ON DEALS AND CORPORATE ISSUES, Evrim and First Majestic agreed to exercise the Ermitaño and Cumobabi option agreements in Sonora. New Gold announced the appointment of its new President and CEO (Cerro San Pedro mine, San Luis Potosi). Levon announced results from its annual general meeting (Cordero project, Chihuahua). Vangold withdrew its submission to acquire the San Carlos property in Guanajuato (El Pinguico mine, Guanajuato).

ON MEXICO ISSUES

  • No relevant news.

ON EXPLORATION

  • Riverside Resources Inc., completed 11 N-S lines for soil sampling which returned strong multi-elements anomalies with Au, Pb, Cu, and other key elements. These results along with previous exploration work have outlined four new target areas on its Cecilia project in Sonora. Target 1 is a 4km long by 300m wide target where previous rock sampling has found up to 2 g/t Au in silicified conglomerates , but the soil anomaly is open in both directions beyond the 4 Km and more than 800m wide. Target 2 is a NE trending Ag, Pb, Au, Zn, Sb, Hg and Cu soil anomaly over 2km long and 600m wide in rock cracks with faults and host veining displaying a series of NW striking feeder dikes. Target 3 is a 1km long by 500m wide Au-Zn with minor Ag, Cu, Pb and Bi soil anomaly associated to a N-S trending fault system intersecting Paleozoic limestones. This target is also along the border edge of a magnetic high reported in a regional government geophysics survey likely associated with Pre Cambrian granitic basement.  Target 4 contains “high-grade gold samples in soils and alteration with jasperoid, silicification, and carbonate veining of the Paleozoic limestone that gives a potential limestone hosted Au with anomalous soil assays of Zn, Pb, Ag and Mn”.
  • Kootenay Silver Inc., announced that its partner Capstone Mining Corp., has commenced an exploration program on its la Mina project in Sonora. The exploration program will consists of detailed mapping and rock chip / stream sediment sampling to generate potential drill targets.
  • Harvest Gold Corporation, reported that Evrim Resources, its JV partner and operator on its Cerro Cascaron project in Chihuahua, has mobilized an advance team to the site to start preparations to drill test the property. The drill program, expected to commence at the end of September, will consist of 3,000 m to test the Cascaron Gold targets and the Cascarita Silver targets.
  • Sable Resources, released drilling results from its Margarita project in Chihuahua. Significant intersections are from hole M-DDH-18-09 with 6.5m of 111 g/t Ag Eq, including 3.5m of 153 g/t Ag; hole M-DDH-18-11 with 11.3m of 252 g/t Ag Eq, including 1.3m of 889 g/t Ag Eq; hole M-DDH-18-12 with 12.7m of 98 g/t Ag Eq, including 1.8m of 244 g/t Ag Eq. Additionally, Sable identified a low-grade stockwork style of mineralization evident in numerous holes. The most significant results are hole M-DDH-18-03 with 44.13m of 50 g/t Ag Eq, including 6.95m of 142 g/t Ag Eq; hole M-DDH-18-07 with 7.6m of 54 g/t Ag Eq, and hole M-DDH-18-12 with 21.35m of 37 g/t Ag Eq. “With the first stage of drilling now complete we will evaluate our results and formulate a plan for stage 2 drilling targeting further extensions of Margarita and the other adjacent parallel veins”.
  • Auxico Resources Canada Inc., reported high-grade sampling results from its Zamora project in Sinaloa. Significant results are 0.80m of 4Kg Ag and 29.2 g/t Au at La Franca claim, 600m southwest of the Campanillas mine along a structure that can be followed by at least 600m along strike. Mineralization consists of breccia-stockwork veining containing galena, sphalerite and possible silver sulphosalts, malachite and chalcopyrite. Other significant results are from Aguamas area where some channel samples returned 0.65m of 6.38 g/t Au and 23 g/t Ag; 0.70m of 14.7 g/t Au and 34 g/t Ag; 0.50m of 3.55 g/t Au and 108.7 g/t Ag; and 1.60m of 6.64 g/t Au and 220 g/t Ag.
  • Gainey Capital Corp., announced a phase 1 exploration program on its Las Margaritas project in Durango. Las Margaritas is a mineralized vein system that extends at least 1.5Km along strike and averages 1-2m in width. The 1st phase exploration program will consists of detailed mapping and sampling with the objective to identify prospective areas to generate the best drill targets.
  • Orex Minerals Inc., commenced an exploration program on its San Luis del Cordero project in Durango, where the company has an option to acquire 100% interest in the property from Exploraciones del Altiplano S.A. de C.V. Mineralization at San Luis del Cordero is characterized by skarn and epithermal vein Ag-Cu-Zn as a result of Tertiary-quartz-feldspar-porphyry intrusions affecting Jurassic and Cretaceous limestones, calcareous sandstones and shales. The project has seen several phases of exploration from different mining companies, including 16,400m drilled in 62 holes in the period 2000-2016. The property contains indicated resources of 662.6K tonnes of 121 g/t Ag, 0.78 % Cu and 1.1 % Zn for a total of 5.1M Oz Ag Eq, and inferred resources of 2, 785,300 tonnes of 144 g/t Ag, 0.75 % Cu and 1.45 % Zn, for a total of 24.4 M Oz Ag Eq.
  • Prospero Silver Corp., reported core drilling results from eleven holes totaling 2, 811m drilled at its Buenavista project in Durango. Mineralization drilled-tested at Buenavista consists of structurally controlled epithermal veins centered on a rhyolite dome complex. “All holes cut anomalous silver mineralization, with a best interval of 1.6m @ 353g/t Ag from 185.6m downhole, within a broader interval of 49m @ 43g/t Ag in hole BVF-18-05”.
  • Advance Gold Corp., started a second phase drilling program at its Tabasquena project in Zacatecas to test the La Tabasquena epithermal vein at a depth of 1,800m. Phase 2 will test below the gold discovery hole of phase 1. It also will test some of the potential feeder type targets and all of the veins below the oxide zone which goes down to an estimated 175 metres below surface.
  • Evrim Resources Corp., announced new trench and soil results from its Cuale project in Jalisco. Highlight results include the trench 2 which was extended from 29.4m to 184.1m with an average grade of 0.85 g/t Au, including 59.1m of 1.79 g/t Au, and including 21.6m of 4.18 g/t Au; Trench 4 , extended from 106.2m to 156.2m with an average grade of 9.57 g/t Au, including 64.6m of 20.85 g/t Au, and including 7.5m of 163.31 g/t Au; and Trench 5 which contains 174m of 0.62 g/t Au, including 70m of 1.16 g/t Au, and including 40m of 1.45 g/t Au. A soil grid with 200 metre spacing outlined a Au anomaly over the entire La Gloria prospect with grades >0.01 g/t Au of 2,300m by 800m with a central corridor of 1,700m by 300m >0.1 g/t Au extending north of the trenched area.  “The soil anomaly at higher elevation correlates with elevated silver, antimony, molybdenum, arsenic and low contents of manganese and zinc.  At lower elevations gold correlates with elevated copper, tellurium, arsenic, bismuth and iron”. “The new trench results expand the La Gloria zone to the northwest and the east with consistent gold mineralization.  Soil sampling indicates the La Gloria system footprint is measurably larger with the potential to host a significant deposit and/or additional mineralized centers within the La Gloria prospect”.   “The soil survey has a distinctive high sulphidation signature centred on a large gold in soil anomaly that is approximately 2,300 metres by 800 metres.  The results indicate a potential major system with significant upside for additional mineralized centers within the La Gloria prospect.”

ON MINING

  • Starcore International Mines Ltd., reported Q21 2018 results from its San Martin mine in Queretaro. Starcore milled 77,400 tonnes of 1.53 g/t Au and 49 g/t Ag to produce 3.3K Oz Au and 72.7K Oz Ag, with an all-in sustaining cost of US$ 1,215 for Eq Oz. Metallurgical recoveries were 88.1% for Au and 59.6% for Ag.
  • US Antimony Corporation, produced 131,184 Lb Sb and 1,244 short tonnes of zeolites in August 2018 and announced plans to increase its production of Sb, Au and Ag in Mexico. At its Wadley mine in San Luis Potosi, the general level will be reactivated by cleaning up the waste to provide access and transportation of the lower grade for the mill. At Sierra Guadalupe in Zacatecas, the Santa Monica drift will be restarted. The ore is primarily sulphides and can be upgraded to 60-70% Sb flotation concentrate at its Puerto Blanco Mill to make antimony tri-sulphide. At the Soyatal district in Queretaro, a buying program will be started to purchase direct shipping ore for its Madero smelter. The construction of the cyanide leach plant for the Los Juarez Au-Ag-Sb should allow pilot testing to commence during Q4 2018. The company also closed an agreement purchase, dismantle and transport an antimony plant from Reynosa, Tamaulipas. When installed, the equipment from the Reynosa plant will increase the capacity of the Madero Smelter in Coahuila to approximately 30,000,000 Lb per year of antimony oxide.

ON FINANCING

  • No relevant news.

 

ON RESOURCES AND DEVELOPMENT

  • SilverCrest Metals Inc., released drilling results from its Las Chispas project in Sonora and expanded the high grade at Babicanora Norte vein. Drill holes have intersected additional high-grade Ag-Au mineralization at Babicanora Norte vein which is located about 300m NE of Babicanora vein and apparently is connected with the Granaditas area which contains multiple veins to the southeast. The most significant results are 1.8 m of 15.11 g/t Au and 1,718 g/t Ag or 2,851 g/t Ag Eq, 1.6 m of 8.96 g/t Au and 1,078 g/t Ag or 1,750 g/t Ag Eq and 1.5 m of 4.22 g/t Au and 687 g/t Ag or 1 Kg Ag Eq. The drilling results of Babicanora Norte vein will be part of the upcoming updated resource which will include 8 of the 30 identified veins in the district.
  • Premier Gold Mines Limited, reported drilling results from the Rey de Oro deposit at its Mercedes mine in Sonora. Highlights results include hole UG-R018-013 which returned 12.64 g/t Au and 240.1 g/t Ag across 29.65 m (TW of 13.5 m), hole UG-R018-015 with 0.41 g/t Au and 3120.0 g/t Ag (91.0 oz/ton) across 1.52 m (TW of 1.06 m), and hole UG-R018-012 with 17.00 g/t Au and 321.0 g/t Ag across 1.1 m (TW of 0.8 m) and 4.47 g/t Au and 138.5 g/t Ag across 8.25 m (TW of 6.1 m). “Underground drilling at Rey de Oro consists of step-out and delineation drilling of this recently developed horizon. This drilling continues to intersect some of the widest vein intercepts on the property and demonstrate the potential to continue to extend the mine life at Mercedes”.
  • Aura Minerals Inc., provided an update at its Aranzazu mine in Zacatecas. Aura has obtained all the necessary permits and initiated the construction of the new tailings disposal system. “The Company expects the Aranzazu mine to achieve commercial production later this year and to achieve the average processing of 2,600 tonnes per day shortly thereafter”.
  • Candelaria Mining Corp., announced a PEA for its Pinos Gold project in Zacatecas. Highlight results from the PEA indicate an after tax net present value (NPV) of US$ 12M using a 5% discount rate, an after tax internal rate return (IRR) of 25%, and a 7 years life of mine with projected gold equivalent ounce (“GEO”) production of 89,000. The PEA includes a mineral resource estimate as of September 13, 2018. Measured resources (Dump) are 85,847 tonnes of 1.6 g/t Au and 83 g/t Ag for a total of 4,444 Oz Au and 229K Oz Ag. Indicated resources are 175,697 tonnes of 3.6 g/t Au and 47 g/t Ag for a total of 20.6K Oz Au and 268K Oz Ag. Inferred resources are 529,267 tonnes of 3.6 g/t Au and 48 g/t Ag for a total of 60.7K Oz Au and 811K Oz Ag. Average recovery for Au and Ag are 90 and 80% respectively. The company plans to have an annual production of 12,700 GEO with an overall average direct cash cost of %US 666 per GEO.
  • McEwen Mining Inc., reported that hopes to add 12 years of mine life at its El Gallo Complex in Sinaloa, combining mineralized sources from five locations that will be developed in two distinct process plant construction phases. McEwen plans to produce 47K Oz Au Eq per year.
  • Bacanora Lithium plc., announced plans to start the mine construction on its Sonora Lithium project in Sonora. $US 420M will be invested in the first phase and is expected to begin to operate in 2020.

ON DEALS AND CORPORATE ISSUES

  • Evrim Resources Corp., and First Majestic Silver Corp., agreed to exercise the Ermitaño and Cumobabi option agreements in Sonora. First Majestic has completed its 100% earn-in for both projects. First Majestic has paid $1.5M in cash to Evrim and has granted a 2% NSR in the case of Ermitaño project and 1.5% NSR in the case of Cumobabi project.
  • New Gold Inc., announced the appointment of its new President and CEO (Cerro San Pedro mine, San Luis Potosi).
  • Levon Resources Ltd., released results from its annual general meeting (Cordero project, Chihuahua).
  • Vangold Mining Corp., withdrew its submission to the TSX Venture Exchange to acquire the San Carlos property in Guanajuato.

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

On the picture above, a banded quartz vein in an intermediate sulphidation epithermal project in Zacatecas, Mexico.  Photo by Miguel A Heredia.

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

116 - copia

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 Fourth Week of May, 2018. Mining and Exploration News in Mexico

By Miguel A Heredia

During the 21th week of the year (May 21th to May 27th, 2018), at least 15 press releases were announced by companies working in Mexico, with six informing on exploration results, 3 communicating deals and corporate issues, 2  reporting Q1 2018 results, two announcing financing,  and  two reporting on resources & development.  ON MEXICO ISSUES, no relevant news ON EXPLORATION, In Sonora, Canuc provided an update on exploration results at its San Javier project, Azure reported drilling results from its Oposura project, and Riverside presented an update on exploration results from its Glor property.  In Sinaloa, Goldplay announced the start of a drilling program on its Habal project. In Coahuila, Discovery Metals reported geochemical results for its Puerto Rico project. Canasil started a drilling program at its La Esperanza project in Zacatecas-Durango.  ON MINING, Santacruz reported Q1 2018 results for its Veta Grande and the Rosario projects in Zacatecas and San Luis Potosí, respectively. Telson started commercial production at its Campo Morado mine in Guerrero. ON FINANCING, Minaurum closed a private placement for $1 M. Prospero closed a placement for $517K. ON RESOURCES AND DEVELOPMENT, Sierra Metals updated mineral reserve and resource estimate at its Bolivar mine in Chihuahua. McEwen announced new preliminary economic assessment for its El Gallo Complex in Sinaloa.   ON DEALS AND CORPORATE ISSUES, Alio announced voting results of its annual general meeting and approved the acquisition of Rye Patch Gold Corp. Almadex changed its name to Azucar Minerals Ltd.  Leagold received approval to acquire Brio Gold.

ON MEXICO ISSUES

  • No relevant news

ON EXPLORATION

  • Canuc Resources Corporation, reported sampling results from its San Javier project in Sonora. Significant results from the northeast section of the San Javier mineralized corridor are 1.5m of 625 g/t Ag in breccia material at the Chiripas working and 3.8m of 477 g/t Ag in vein material at the Little Pit working. In the southwest portion at the Jazmin old working sampling returned 2m of 698 g/t Ag in vein material. “These results clearly indicate that high grade silver vein mineralization, and also silver bearing breccia geology, is evidenced along the full 3 km strike extent of the San Javier structure and the San Javier mineralized corridor. This is very encouraging for geological prospects and vein continuity along trend in the northeasterly direction, and suggests potential for a robust high-grade and vein hosted mineral endowment.” Canuc also announced the release of two of the nineteen claims optioned in san Javier property.
  • Azure Minerals Limited, reported drilling results from its Oposura project in Sonora. Highlights include 12.5m of 3.9% Pb and 12.4% Zn; 3.20m of 8.0% Pb and 13.0% Zn, 2.95m of 7.7% Pb and 10.3% Zn, and 2.50m of 2.4% Pb and 24.8% Zn. “The weighted average thickness of the intersections within this high-grade zone is 5.8m of 5.5% Pb and 13.7% Zn.
  • Riverside Resources Inc., presented exploration results from its Glor project in Sonora. This exploration program, funded by its partner Centerra Gold, consisted on geological mapping, stream sediment & soil geochemistry surveys along with the interpretation of aeromagnetics data and identified a 3.5km long structural corridor of “highly deformed rocks showing patchy hydrothermal mineralization and scattered occurrences of gold and base metal mineralization”. This shear zone displays quartz-sericite-carbonate hydrothermal alteration and has been interpreted as a target with potential to contain orogenic type gold mineralization.
  • Goldplay Exploration Ltd., commenced a phase first drilling program on its Habal project in Sinaloa, which will consists of 1,500m in six holes. The aim is to drill-test a 600m long mineralized corridor open along strike and down dip within a highly prospective 6 km long mineralized corridor. The drill program will test shallow low resistivity anomalies identified by a CSMAT survey with evidences of intense hydrothermal alteration in andesites and rhyolites known to contain Au mineralized quartz stockwork zones.
  • Discovery Metals Corp., reported high-grade results from a Significant results are 2.2m of 624 g/t Ag, 2.5% Pb, 6.1% Zn and 0.4% Cu, including 0.7m of 1, 860 g/t Ag, 5.7% Pb, 7.6% Pb, and 1% Cu; 2.0m of 268 g/t Ag, 9.8% Pb, 17.5% Zn, and 0.2% Cu, including 0.9m of 529 g/t Ag, 18.2% Pb, 19.6% Zn, and 0.5% Cu; and 8m of 179 g/t Ag, 12.6% Pb, 18.3% Zn, and 0.1% Cu, including 0.7m of 148 g/t Ag, 2.6% Pb, 27.9% Zn, and 0.1% Cu.
  • Canasil Resources Inc., started a drilling program at its La Esperanza project in Zacatecas-Durango. “The drill program is planned to follow up on the positive drill results from the 2016-17 drill program on the La Esperanza vein, located in the southeast of the project area”.

 

ON MINING

  • Santacruz Silver Mining Ltd., reported Q1 2018 results for its Veta Grande and the Rosario projects in Zacatecas and San Luis Potosi respectively. At Veta Grande, the company milled 35K tonnes at a grade of 62 g/t Ag 32.4K Oz Ag. A the Rosario, Santacruz milled 13K tonnes at a grade of 42 g/t Ag to produce 15.7K Oz Ag.
  • Telson Mining Corp., started commercial production at its Campo Morado mine in Guerrero. The company milled 112.5K tonnes during the past 60 operational days at an average daily rate of 1,875 tonnes per day, with average Zn recoveries of 73%.

ON FINANCING

  • Minaurum Gold Inc., closed a second tranche of a private placement for $1 M. Total proceeds will be used for its ongoing exploration program at Alamos, Sonora.
  • Prospero Silver Corp., closed a private placement for $517K.

ON RESOURCES AND DEVELOPMENT

  • Sierra Metals Inc., update mineral reserve and resource estimate at its Bolivar mine in Chihuahua. Total proven + probable reserves are 7.9M tonnes of 0.25 g/t Au, 19 g/t Ag, and 0.86% Cu for a total of 63K Oz Au, 4.8M Oz Ag, and 152 M Lb Cu. Total indicated resources are 13.3 M tonnes of 0.29 g/t Au, 22 g/t Ag, and 1.04% Cu for a total of 124K Oz Au, 9.6M Oz Ag, and 308M Lb Cu, while inferred resources are 8M tonnes of 0.42 g/t Au, 22 g/t Ag and 0.96% Cu for a total of 109K Oz Au, 5.8M Oz Ag, and 172M Lb Cu (Mineral resources are reported inclusive of ore reserves).
  • Mc Ewen Mining Inc., announced a new preliminary assessment for its El Gallo Complex in Sinaloa, and extends its life for 10 years more in Mexico. Updated measured and indicated resource are 13 M tonnes of 0.39 g/t Au and 77 g/t Ag for a total of 161K Oz Au and 32.2 M Oz Ag. Total inferred resources are 7M tonnes of 0.81 g/t Au and 27 g/t Ag for 140K Oz Au and 5M Oz Ag. The key outcome include an average annual production rate of 47K Oz AuEq, low initial capital cost, mine pay-back of 4 years, and after-tax IRR of 25% at current Au and Ag prices.

ON DEALS AND CORPORATE ISSUES

  • Alio Gold Inc., announced voting results from its annual general meeting and approved the acquisition of Rye Patch Gold Corp.
  • Almadex Minerals Limited., changed its name to Azucar Minerals Ltd.
  • Leagold Mining Corporation, received Mexican anti-trust approval to acquire Brio 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, a rhythmic banded quartz + barite vein with abundant manganese oxides in a prospect in Chihuahua, Mexico. Photo by Miguel A Heredia.

Explotación minera en el mar, opción o pesadilla

https://www.eleconomista.com.mx/opinion/Explotacion-minera-en-el-mar-opcion-o-pesadilla-20180504-0041.html

La explotación minera de fondos oceánicos será pronto una realidad. Sus impactos ambientales están siendo intensamente evaluados por instituciones académicas y agencias internacionales, mientras la ingeniería avanza lo suficiente para colocarla como opción viable y rentable, en muchos casos, superior a la minería en tierra. Crece la escasez de minerales metálicos y no metálicos en yacimientos terrestres accesibles y de costo aceptable, mientras el reciclaje es insuficiente y la demanda aumenta exponencialmente por la industria electrónica y la fabricación de baterías para vehículos eléctricos. Níquel, cobalto, tungsteno, platino, rodio, manganeso y otros metales son indispensables para nuevas tecnologías electrónicas, y el fósforo es insumo vital para la manufactura de fertilizantes esenciales en la agricultura. El impacto ambiental de actividades mineras en tierra llega a ser devastador en cuanto a ecosistemas y paisajes, deforestación, y contaminación de aguas, suelos y atmósfera.

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

By Jorge Cirett

During the 10th week of the year (March 5th to March 11th, 2018), at least 24 press releases were announced by companies working in Mexico, and three articles on mining matters in Mexico published by newspapers. ON MEXICO ISSUES, the Fraser Institute released the results of the 2017 survey on Mining Attractiveness by Jurisdiction, with Mexico stagnant at mid table due to low results on taxation regime, labor disruptions and security perception. The Sonora government is supporting the mining industry with the signature of a collaboration agreement with the Economy Bureau. The governors of Chihuahua and Oaxaca attended the PDAC in Toronto for promoting mining investment in their respective states. Other delegations present were from Durango and Zacatecas. ON EXPLORATION, In Sonora Riverside announced a bigger land position at its Cecilia project; Oceanus has mapped the favorable El Tigre Formation rock package for 5 km in strike length at its El Tigre property; Mexus Gold updated on exploration of its 8 Hermanos property; Millrock disclosed interesting low grade drilling results from its Navidad property; Azure has started the second drill campaign at its Sara Alicia Au-Co property. In Chihuahua VVC Minerals received the permit for drilling its Samalayuca property; Radius updated on exploration at its Amalia project. In Guanajuato, Vangold started the phase two of drilling at its Pinguico property. ON MINING, two companies, Americas Silver and Santacruz Silver presented production results for the quarter and/or full year 2017. Magellan Gold announced the restart of its mill in Nayarit.  ON FINANCING, Canuc Resources closed a $1.1 M financing round, Colibri closed the first tranche of a financing round netting $1.08 M. Vangold announced the opening of a financing round for raising up to $2 M. Santacruz Silver obtained a US$2.3 M private loan. Starcore closed a financing round for $125 K with an insider.  ON RESOURCES AND DEVELOPMENT, Levon Resources released an updated mineral resource report for its Cordero project in Chihuahua. Alio Gold provided an exploration update at its Ana Paula project in Guerrero. Leagold updated its mineral resource estimate for its Los Filos mine and the Bermejal Underground deposits in Guerrero. ON DEALS AND CORPORATE ISSUES, Sonoro Metals acted on the LOI to option a group of properties adjacent to its Cerro Caliche property in Sonora. Autlan is to acquire all shares from Metallorum (it already controls an undisclosed percentage), which owns the Lluvia de Oro mine in Sonora.

ON MEXICO ISSUES

  • Mexico stays about the same on the investment attractiveness index published yearly by the Fraser Institute. Mexico fell to the 50 (of 91 jurisdictions surveyed) position from the 44 (of 104) on the 2016 survey, affected mainly by low rankings in security, taxation regime and labor regulations/work disruptions. In 2014 Mexico was on the 24 position of 122 surveyed. Chile ranked 8 and Peru 19 on the 2017 survey. Below is the table for the perception of the taxation regime (which presents the effect of the recently imposed royalties as a hard fact). The security perception ranking, along the other rankings can be seen at the following link: (https://www.fraserinstitute.org/sites/default/files/survey-of-mining-companies-2017.pdf).Taxation Regime Index, Fraser Institute 20171
  • The Sonora government is supporting the development of the mining industry in the state with the signature of a collaboration agreement with the Economy Bureau (Secretaría de Economía). The agreement looks to promote investment, better technical assessments, training and cut red tape. The mining industry represents 17% of the state’s GDP, with the state providing 31% of Mexico’s mining production. Sonora’s Governor Claudia Pavlovich has been pushing a proposal on the Deputies Chamber to install a 100% deduction of exploration expenses on the year these are incurred.
  • The governors of Chihuahua and Oaxaca attended the PDAC in Toronto Canada to promote mining investment on their states. Both Javier Corral (Chihuahua) and Alejandro Murat (Oaxaca) attended the Mexico Mining Day 2018 and had personal interviews with companies doing business in their states or trying to set a foothold there. Other delegations present were from Durango and Zacatecas.

ON EXPLORATION

  • VVC Minerals Corp. received the permit for drilling at its Samalayuca property in Chihuahua. The SEMARNAT permit approved 22 new drilling sites, in addition to 13 already approved. The drilling is to focus on La Gloria Extension area, La Concha pit area, La Zorra zone and the Julianna, Suerte and Trinidad areas. The completed and proposed drilling cover 7 Km of strike length on the property.
  • Vangold Mining Corp. concludes phase 1 drilling, starts phase 2 drilling at El Pinguico property in Guanajuato. Vangold completed five of 15 drill holes targeting the underground stockpiles (backfill) on the El Pinguico vein, with poor recoveries and grades. While a better method of assessing these stockpiles is researched, the company has initiated the phase 2 drilling campaign targeting the lower El Pinguico vein extension below the old workings, 300 m below the surface.
  • Riverside Resources Inc. announced that it has been granted the mineral rights to the Cecilia 1 concession, increasing the ground held on the Cecilia project in Sonora to almost 6,000 hectares. Epithermal Au-Ag mineralization is associated to a rhyolite flow-dome setting.
  • Oceanus Resources Corp. updated on its exploration efforts on El Tigre property in Sonora. The El Tigre Formation is the rock package that host the historic El Tigre mine, which operated from 1903 to 1938, producing 353 K Oz Au and 67.4 M Oz Ag; the favorable El Tigre Formation has been now traced for 5 km.
  • Mexus Gold US. presented an update on exploration of its 8 Hermanos and Scorpio_370 claims in Sonora. Mexus controls 2,800 hectares in an area with sedimentary rocks intruded by granodiorite, dioritic dikes and a diorite porphyry, all covered in turn by Tertiary volcanic tuffs and flows. Three samples from the 370 concession returned 9 g/t Au, 41 g/t Ag; 47 g/t Au, 33 g/t Ag; 10 g/t Au, 8 g/t Ag. Porphyry copper potential is highlighted on a report (no alteration is described).
  • Radius Gold Inc. provided an update on exploration at the Amalia project in Chihuahua. The 10,380 ha project has Au-Ag mineralization defined over 2 km of strike length in high level chalcedonic veins, stockworks and breccias and deeper level structurally controlled higher grade mineralization. “Radius continues to advance the Amalia project and is currently permitting drilling and bulldozer trenching.” Recent channel sampling returned 4.5 m @ 10.3 g/t Au, 202 g/t Ag, extending the total strike length of the high-level epithermal mineralization of the Campamento zone to 500 m.
  • Millrock Resources Inc. reported on first phase core drilling at its La Navidad project in Sonora, funded by earn-in partner Centerra Gold. In total, 2,130 m were drilled in 12 holes, with several anomalous intersections, like: 17.2 m @ 0.75 g/t Au (including 1 m @ 9.05 g/t Au); 15.65 m @ 0.60 g/t Au; 18.30 m @ 0.33 g/t Au; 18.0 m @ 0.12 g/t Au; 6.00 m @ 0.26 g/t Au; 5.90 m @ 0.45 g/t Au; 57.0 m @ 0.29 g/t Au; 16.6 m @ 0.35 g/t Au.
  • Azure Minerals Ltd. announced the start of the second drilling campaign on its Sara Alicia project in Sonora. “The Sara Alicia mineralised zone consists of carbonate rocks intruded by a porphyry. This intrusive event caused strong alteration and mineralising reactions in the limestones to form a skarn body which hosts massive and semi-massive sulphides containing the cobalt and gold mineralisation”. The first phase of this drilling campaign is to comprise 1,000 m in 10-12 holes, targeting along-strike and down-dip extensions. The second phase is planned to complete a 50 x 50 m drill pattern over the mineralized body.

ON MINING

  • Americas Silver Corp. reported 4Q and year-end financial results for 2017, including some figures from its operations in Mexico. The San Rafael mine in Sinaloa declared commercial production on December 19, 2017, and was constructed for $16.3 M, 32% lower than the initial project guidance. For 2018 the company plans to produce 1.6 to 2.0 M Oz Ag and 7.2 to 8.0 M Oz AgEq. Cash balance at the end of December was $9.3 M, with net working capital of $11.8 M.
  • Santacruz Silver Mining Ltd. reported operating results for the fourth quarter and full year 2017. Santacruz produced 865.4 K Oz AgEq during the year, including 139.7 K Oz AgEq during the fourth quarter. At Veta Grande in Zacatecas 102.1 K tonnes were milled @ 100 g/t Ag (127 g/t AgEq) and Ag recovery of 61% to produce 201.3 K Oz Ag, 424 Oz Au, 466 tonnes Pb, 803 tonnes Zn during the year. At Rosario in San Luis Potosi, 78.9 K tonnes were milled @ 52 g/t Ag (205 g/t AgEq) and a recovery of 85% Ag to produce 112.6 K Oz Ag, 1,007 Oz Au, 157 tonnes Pb, 1,489 tonnes Zn during the same period.
  • Magellan Gold Corp. announced it has rehired employees and is restarting its 100% owned SDA mill in Nayarit. Operations are initially to reprocess tailing located at the site, with recovery of precious metals expected to defray holding costs of the mill while new ore sources are acquired. The mill last operated in November 2017 and processed third-party ore on a toll basis.

ON FINANCING

  • Canuc Resources Corp. closed a non-brokered private placement financing with gross proceeds of $1.1 M (San Javier, Sonora).
  • Colibri Resource Corp. has closed an over-subscribed first tranche on its previously announced $1 M financing, raising gross proceeds of $1.077 M. Total gross proceeds to be raised between the two tranches is expected to be $1.2 M (Pilar, Sonora).
  • Vangold Mining Corp. announced a non-brokered private placement financing to raise up to $2 M, and fund the phase 2 drill program targeting the lower El Pinguico vein extension, and general working capital.
  • Santacruz Silver Mining Ltd. has arranged a loan from a private Bolivian mining company, for US$2.3 M. The loan bears interest at 9% per annum, is repayable July 1st, 2018, and is unsecured (Veta Grande, Zacatecas; Rosario, San Luis Potosi).
  • Starcore International Mines Ltd. announced the closing of its non-brokered private placement to an insider, for gross proceeds of $125 K (San Martin, Queretaro).

ON RESOURCES AND DEVELOPMENT

  • Levon Resources Ltd. announced an updated NI-43-101 mineral resource estimate and a 2018 preliminary economic assessment (PEA) for the Cordero project in Chihuahua. The new estimate includes 990 M tonnes of ore @ 12.8 g/t Ag, 0.37% Zn, 0.17% Pb, 0.04 g/t Au as indicated resources and 282.2 M tonnes @ 20.7 g/t Ag, 0.75% Zn, 0.30% Pb, 0.04 g/t Au as inferred resources. The said resource contains 595 M Oz Ag, 1.63 M Oz Au, 12.7 B Lb Zn, 5.6 B Lb Pb in the indicated and inferred categories. The PEA includes an open pit mining rate of 40 K tpd (tonnes per day) to produce mineral concentrate, an annual production of 8 M Oz Ag, 44.8 K tonnes Zn, 31.1 K tonnes Pb, 11,900 Oz Au. Over the 29 year mine life on the PEA, 231 M Oz Ag, 2,863 M Lb Zn, 1,992 M Lb Pb would be produced.” Metallurgy is simple (side by side lead and zinc conventional flotation mills) with 88% overall recoveries after three rounds of bench-scale testing”.
  • Alio Gold Inc. provided an update on exploration of its Ana Paula project in Guerrero. To date 1,300 m of the planned 3,800 m of surface drilling have been completed (two of six diamond drill holes), intersecting breccia mineralization as expected and awaiting assay results. Two new breccia targets were discovered by mapping within 1.5 km of the limit of the proposed pit, showing magmatic and hydrothermal breccia mineralization with traces of pyrite and arsenopyrite.
  • Leagold Mining Corp. has filed a NI-43-101 technical report for the Los Filos mine in Guerrero. For Los Filos and Bermejal Underground deposits, measured and indicated resources amount to 13.53 M Oz Au, while inferred resources stand at 6.28 M Oz Au (Almost 20 million ounces of gold!).  Los Filos Resources1Los Filos Resources1 - copia

ON DEALS AND CORPORATE ISSUES

  • Sonoro Metals Corp. has executed on the letter of intent (LOI) of an option agreement on the Rosario group of properties in Sonora. The Rosario concessions are adjacent to Sonoro’s Cerro Caliche property, covering 403.5 hectares, thereby increasing Sonoro’s land holdings in the area to 1,455 hectares. Sonoro is to acquire 100% interest on the property by paying the vendor (a Tucson resident) US$1.6 M payable in escalating cash installments over 72 months, with the initial installment of US$60 K payable on execution. The vendor is to retain 2% NSR, same that can be bought by Sonoro by US1 M for each one percent.
  • Compañía Minera Autlán SAB de CV. is to acquire all the shares of Metallorum Holding, which owns the Lluvia de Oro mine in Sonora. The company is to invest US$25 M in the next three years to increase its manganese and ferroalloys production capacity.

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, beautiful quartz vein with bladed calcite pseudomorphs at the museum of El Oro mining district in Estado de Mexico.

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