The Mining and Exploration News in Mexico: Highlights on the Second Week of January, 2022. 

Secondary copper staining

By Miguel A Heredia

During the 2nd week of the year (January 10th to January 16th, 2022), at least 27 press releases were announced by companies working in Mexico, and 4 news published by the media, with eleven reporting resources and developments of their properties, six communicating production results, six informing on exploration results, four disclosing deals and corporate issues, three commenting on Mexican issues, and one discussing social issues.  ON MEXICO ISSUES, Jaime Gutiérrez Núñez, President of the Mexican Mining Chamber (CAMIMEX) stated that political risk causes a reduction in the mining investment in Mexico. Alfonso Durazo, governor of Sonora State declared that the Mining Fund program will be back in the state after it was frozen for a little more than three years. ON EXPLORATION, In Sonora, Reyna Gold reported surface and trench sampling results from its La Gloria project, Colibri announced it has purchased a RC drilling rig to reduce drilling expenses, and Heliostar informed that its 5,000m drill program at its Cumaro project has recommenced after the Christmas break. In Chihuahua, Mammoth added additional drill contractor to its ongoing drill program at its Tenoriba project. Radius Gold and Riverside provided a review of 2021 and an update of their Mexican properties.  ON MINING, Americas Gold and Silver reported December 2021 production results from its Cosalá operation in Sinaloa. Torex announced production results from its El Limon-Guajes mine in Guerrero for the full year 2021. Endeavour reported Q4 and full year 2021 production results from their Mexican mine operations. Golden Minerals reported Q4 and full year 2021 production results from its Rodeo project, Durango. Equinox announced Q4, 2021 production from their Mexican operations and provided production guidance for the year 2022. Gatos Silver reported Q4 and full year 2021 production results from its Cerro Los Gatos mine, Chihuahua. ON FINANCING, no relevant news. ON RESOURCES AND DEVELOPMENT, Silver Tiger released results from its ongoing drilling program at its El Tigre project, Sonora. Prime announced results from 13 new holes drilled at the Noche Buena deposit within its Los Reyes property in Sinaloa. Avino provided results from its Phase 2 drilling program conducted at its Avino property in Durango. Capitan Mining reported results from six RC holes collared at its Peñoles project in Durango. Excellon released results from its underground drilling program conducted at the Platosa property in Durango.  Fabled released results from its ongoing drilling program at its Santa Maria project, Chihuahua. Zacatecas Silver received permits for 13 new drill pads and applied for permits on additional 27 drill pads at its Panuco deposit in Zacatecas.  Silver Dollar announced that exploration drilling has recommenced at its La Joya project, Durango. Oroco Resource reported results from eight drill holes collared at its Santo Tomas project in Sinaloa. Osisko released drill results on its San Antonio project in Sonora. GoGold release results from 13 drill holes collared at its Los Ricos North project, Jalisco. ON DEALS AND CORPORATE ISSUES, Ranchero Gold announced the appointment of its President effective immediately (Santa Daniela project, Sonora). Starcore announced the appointment of its new President and Director (San Martin mine, Queretaro). Capitan Mining entered into a purchase agreement to acquire a portfolio of royalties including a 2% royalty on the Capitan Gold oxide deposit in Durango. Endeavour entered into a definitive agreement to acquire the Pitarrilla project in Durango State from SSR Mining. ON SOCIAL RESPONSIBILITY, Compañia Minera Cuzcatlán (Fortuna Silver) along with local municipal authorities delivered toys to more than 20,000 girls and boys from Oaxaca.

ON MEXICO ISSUE

  • Jaime Gutiérrez Núñez, President of the Mexican Mining Chamber (CAMIMEX) stated that political risk causes a reduction in the mining investment in Mexico.  The lack of legal certainty and a complex environment for obtaining licenses and concessions are holding back investment in the Mexico’s mining sector, despite the rise in metal prices. Actual spending was USD $4.25B, 15.6% below the original estimates, according to CAMIMEX. The figure is lower than the USD $4.67B in 2019 and is well below the high of USD $8.42B in 2012.  Due to the lack of mining concessions, investment opportunities of USD $25B are lost in the country. Currently, there are 29 applications detained in the Secretary of the Environment and Natural Resources (SEMARNAT) and 34 at the National Water Commission (CONAGUA). With an adequate legal framework and adequate incentives, mining activity could generate 50 thousand additional direct jobs and more than MXP $25B a year in addition to those already paid by mining. “The statements of the President (against mining), not granting mining concessions, denying access to information, making procedures increasingly slow, although the terms are established in the law, and the lack of personnel in the Mining Directorate General  have impeded the advancement of mining projects in the country”.
  • Alfonso Durazo, governor of Sonora State, declared that the Mining Fund program could be back in the state after it was frozen for a little more than three years by the Federal government. If the Mining Fund is back, the injection of resources into the entity in this 2022 will be greater than MXP $1,000M, same that will benefit the mining towns and incidentally will give a good respite to state public finances.

ON EXPLORATION

  • Reyna Gold Corp., reported surface and trench sampling results from its La Gloria project. To date, 1,252 sample results have been received from the Main Zone area where drilling will commence this coming February. A total of 555 samples out of 713 returned greater than 0.1 g/t Au, including 23 with greater than 5 g/t Au at Big Pit area. High grade values were encountered at Big Pit and Pique Viejo areas including values of 93.9 g/t Au, 36.2 g/t Au, 46.1 g/t Au, 24.4 g/t Au, 20.1 g/t Au. Other areas such as Las Quintas, Las Quintas West, San Pedro, and Alamo Muerto returned values of 20.1 g/t Au, 15.9 g/t Au, 13.3 g/t Au, 11.1 g/t Au, 13.6 g/t Au, and 9.3 g/t Au. Reyna Gold has already the drill permits to commence a drilling program at Big Pit and Pique Viejo areas in February, 2022. Sampling and mapping will continue in other target areas of the property.
  • Colibri Resource Corporation announced it has purchased a RC drilling rig and peripheral equipment to reduce drilling expenses and advance its exploration work at their Mexican properties.
  • Heliostar Metals limited informed that its 5,000m drill program at its Cumaro project has recommenced after the Christmas break. Heliostar reported that four holes totalling 428m were completed in December 2021. Results are pending and will be released in late February.
  • Mammoth Resources Corp., added additional drill contractor to its ongoing drill program at its Tenoriba project. The company reported that 4 holes collared at the Central-Masuparia area were completed prior to the Christmas break. Samples were cut and submitted to the lab. Results are pending. Last December, 2021, Mammoth announced the granting of an additional permit to cover an additional 183 drill hole locations, expanding the total number of permitted drill hole locations to 321 over the entire approximately 6-km trend of surface gold-silver mineralization at Tenoriba property, Chihuahua.
  • Radius Gold Inc., provided a review of 2021 and an update of their Mexican properties. At Amalia project. Chihuahua, 45 drill holes totalling 14,402m have been completed of which 10,588m in 31 holes were drilled in the Amalia Vein System and 3,814m in 14 holes were drilled in the California Vein System. Drilling has re-commenced at El Cuervo target with 3,500m of core drilling expected in the coming months. There are still several targets remaining to drill test including Oro Viejo, La Caverna, California SE, El Pozo and Palmillas. At Maricela project, Sonora, the company mapped and sampled the Au-Ag Epithermal Vein system, extending 1.5km long by 300m wide, within which occurs multiple veins, stockworks, and breccias. 576 samples have been collected with highlights including intervals of 4.46 g/t Au and 1,335 g/t Ag over 3m at la Baby Gloria Vein;  1.03 g/t Au and 418 g/t Ag over 63 at Silver Central Vein; and 0.31 g/t Au and 62 g/t Ag over 25.3m at intersecting veins. At Plata Verde project, Chihuahua, Radius completed a geophysical survey. NP/Resistivity sections show significant structural zones extending to depth directly below the known large scale historic silver mines. Two priority targets for drilling have been generated. In addition, the company completed detail underground mapping and sampling of the historic Mina Real y Mina Mojonera. Radius is evaluating options to fund drilling later this year.
  • Riverside Resources inc., provided an outlook on the upcoming 2022 and informed on some of the achievements and milestones in 2021. Riverside plans to advance their exploration projects in Sonora. It plans to advance its La Union project in Sonora, where sampling results have returned up to  84 g/t Au and >1,500 g/t Ag in rock chip samples. On the exploration alliance with BHP, the company is progressing on 3 funded programs with spending of over USD $3M in the first 6 months of 2022, doing exploration on selected and defined projects, finalizing third party acquisitions, and advance work toward drilling. At Cecilia project, Sonora, along with its partner Carlyle, the objective is to complete further drilling which could define a possible mineralized body at depth around the Cerro Magallanes main dome. At Los Cuarentas project in Sonora, the plan is to advance it with further drilling and test the porphyry copper center. It also wants to complete further farm out option deals from the Riverside portfolio such as Suaqui Grande and Suaqui Verde projects in Sonora, among others. Finally, it plans to work with partners to test porphyry copper targets at its Ariel project, Sonora.

ON MINING

  • Americas Gold and Silver Corporation reported that it milled approximately 47K tonnes at a rate of 1,695 tonnes per operating day during, December 2021, with grades of 54 g/t Ag, 4% Zn, and 1.8% Pb to produce 46K Oz Ag, 3.2M Lb Zn, and 1.3M Lb Pb from its Cosalá operation in Sinaloa.
  • Torex Gold Resources inc., announced production results from its El Limon-Guajes mine in Guerrero for Q4 and the full year 2021. The company mined in Q4, 2021, an average of 1,030 tonnes per day from underground and 9,390 tonnes per day from open pit to produce 109,410 Oz Au. Torex mined an average of 1,260 tonnes per day from underground and 13,040 tonnes per day from open pit in the full year 2021 to produce 468,200 Oz Au. The company sold 468,820 Oz Au at an average realized price of USD $1,790/Oz Au, including 109,390 Oz Au at an average realized price of USD $1,795/Oz Au.
  • Endeavour Silver Corp., reported Q4 and full year 2021 production results from their Mexican mine operations. During the period Q4, 2021, the company processed from Guanacevi mine, Durango 108.3K tonnes of 1.21 g/t Au and 417 g/t Ag with metallurgical recoveries of 92.2% and 89.6% respectively to produce 3,885 Oz Au and 1.3M Oz Ag, and from Bolañitos mine, Guanajuato, 105.2K tonnes of 1.83 g/t Au and 48 g/t Ag with metallurgical recoveries of 88.9% and 87% respectively to produce 5,502 Oz Au and 141.2K Oz Ag. Endeavour also reported full year production results from their Mexican mines. It processed 414.3K tonnes from Guanacevi mine, Durango at grades of 1.09 g/t Au and 370 g/t Ag with metallurgical recoveries of 91.7% and 87.9% respectively to produce  13,317 Oz Au and 4.33M Oz Ag; from Bolañitos mine, Guanajuato itprocessed 418.5K tonnes of 2.02 g/t Au and 42 g/t Ag wit metallurgical recoveries of 90.7% and 87% respectively to produce 24,652 Oz Au and 491.4K Oz Ag; and from El Compas mine, Zacatecas it processed  54.5K tonnes of 3.05 g/t Au and 36 g/t Ag with metallurgical recoveries of 80.2% and 72.5% respectively to produce 4,293 Oz Au and 45.8K Oz Ag. Consolidated results for the period Q4, 2021 were 213.5K tonnes of 1.52 g/t Au and 235 g/t Ag with metallurgical recoveries of 90.8% and 89.4% respectively to produce 9,446 Oz Au and 1.44M Oz Ag, while for the full year 2021 were 887.4K tonnes of 1.65 g/t Au and 195 g/t Ag with metallurgical recoveries of 89.8% and 87.6% respectively to produce 42,262 Oz Au and 4.87M Oz Ag.
  • Golden Minerals Company reported Q4 and full year 2021 production results from its Rodeo project, Durango. In Q4, 2021, Golden mined 145,205 tonnes and processed 42,827 tonnes of 4.6 g/t Au and 14 g/t Ag with metallurgical recoveries of 76.5% and 82.6% respectively to produce 4,831 Oz Au and 15,250 Oz Ag (5,028 Oz AuEq). The company sold 5,164 Oz Au and 15,552 Oz Ag (5,366 Oz AuEq) at realized price, before refining and selling costs of USD $1,784 per Oz Au and USD $23.08 per Oz Ag. In the full year 2021, Golden mined 661,102 tonnes and processed 149,411 tonnes of 4.1 g/t Au and 12 g/t Ag with metallurgical recoveries of 74.9% and 89.9% respectively to produce 14,449 Oz Au and 51,058 Oz Ag (15,256 Oz AuEq). The company sold 13,732 Oz Au and 48,970 Oz Ag (14,454 Oz AuEq) at realized price, before refining and selling costs of USD $1,793 per Oz Au and USD $24.83 per Oz Ag.
  • Equinox Gold Corporation announced full year 2021 production from their Mexican operations and provided production guidance for the year 2022. At Los Filos mine, Guerrero, the company produced 144.1K Oz Au and expects to produce 120K-140K Oz Au in the year 2022. At Mercedes mine, Sonora, the company produced 31.8K Oz Au and expects to produce 30K-45K Oz Au in the year 2022.
  • Gatos Silver Inc., reported Q4 and full year 2021 production results from its Cerro Los Gatos mine, Chihuahua. In Q4, 2021 the company milled 241,397 tonnes of 331 g/t Ag, 0.3 g/t Au, 2.2% Pb, and 3.9% Zn with metallurgical recoveries of 90%, 63%, 91%, and 93% respectively, to produce 2.3M Oz Ag, 1,300 Oz Au, 10.2M Lb Pb, and 12.9M Lb Zn. In the full year 2021, Gatos Silver milled 909,586 tonnes of 295 g/t Ag, 0.32% Au, 2.3% Pb, and 3.9% Zn with metallurgical recoveries of 86%, 61%, 86%, and 73% respectively, to produce 7.6M Oz Ag, 5,200 Oz Au, 39.8M Lb Pb, and 49.6M Lb Zn.
  • Oroco Resource Corp., reported results from eight drill holes collared in the North Zone within its Santo Tomas project in Sinaloa. Significant drill intercepts were encountered in hole N001 with 0.18% Cu, 0.012% Mo, 0.02 g/t Au and 1 g/t Ag over 27m, plus 0.39% Cu, 0.01% Mo, 0.045 g/t Au and 2 g/t Ag over 255m, plus 0.17% Cu, 0.003% Mo, 0.008 g/t Au and 1 g/t Ag over 49m; hole N002 with 0.38% Cu, 0.012% Mo, 0.025 g/t Au and 23 g/t Ag over 281.1m; hole N003 with 0.31% Cu, 0.009% Mo, 0.014 g/t Au and 3g/t Ag over 11.8m, plus 0.33% Cu, 0.018% Mo, 0.017 g/t Au, and 1g/t Ag over 17.7m, plus 0.29% Cu, 0.025% Mo, 0.02 g/t Au and 3 g/t Ag over 25.5m, plus 0.5% Cu, 0.008% Mo, 0.026 g/t Au and 3 g/t Ag over 14.3m, plus 0.39% Cu, 0.014% Mo, 0.019 g/t Au and 3 g/t Ag over 207.7m, plus 0.18% Cu, 0.002% Mo, 0.007 g/t Au and 2 g/t Ag over 76.2m, hole N004 with 0.38% Cu, 0.012% Mo, 0.017 g/t Au and 2 g/t Ag over 63.7m; hole N006 with 0.39% Cu, 0.004% Mo, 0.051 g/t Au and 2 g/t Ag over 188.5m, plus 0.17% Cu, 0.005% Mo, 0.011 g/t Au and  1 g/t Ag over 53.7m, hole N007 with 0.32% Cu, 0.005% Mo, 0.029 g/t Au, and 3 g/t Ag over 191.3m, plus 0.32% Cu, 0.012% Mo, 0.018 g/t Au and 3 g/t Ag over 109.9m; and hole N008 with 0.38% Cu, 0.01% Mo, 0.038 g/t Au and 3 g/t Ag over 328.3m. “Drilling confirms that the North Zone is comprised of intensely fractured, potassic- and phyllic-altered andesite volcanics and Laramide-age porphyritic intrusive dikes. Elevated Mo, Au and Ag accompany copper assays along the central axis of the North Zone”.
  • Osisko Gold Royalties Inc., announced that a total of 27,000m were completed on exploration and infill drilling on the Sapuchi, California and Golfo de Oro deposits at its San Antonio project in Sonora. These three deposits comprise 900m of a 3km long Iron Oxide Copper Gold (IOCG) trend that ends at the past producing Luz del Cobre copper deposit. The highlights of the drilling campaign to date include 2.14 g/t Au over 21.65m, and 1.03 g/t Au over 39.9m to extend the known mineralization. Osisko also announced that the historic gold stockpile is being stacked onto a new heap leach pad with production commencing in early 2022 along with an updated resource estimation for the three deposits being drilled.

ON FINANCING

  • No relevant news.

ON RESOURCES AND DEVELOPMENT

  • Silver Tiger Metals Inc., released results from its ongoing drilling program at its El Tigre project, Sonora, including a high grade intercept in a structure located between the Tiger Vein and the Seitz Kelly Vein. Hole ET-21-274 encountered 0.84 g/t Au and  1 g/t Ag (65 g/t AgEq) over 15m, including 1.42 g/t Au and 1 g/t Ag (108 g/t AgEq) over 4.5m, plus 0.4 g/t Au, 8 g/t Ag, 0.02% Cu, 0.02% Pb, and 0.03% Zn (41 g/t AgEq) over 6.3m, including 0.71 g/t Au, 13 g/t Ag, 0.02% Cu, 0.03% Pb, and 0.1% Pb (73 g/t AgEq) over 1.5m on Seitz Kelly Vein; and hole ET-21-278 encountered in a new structure 3.99 g/t Au, 32 g/t Ag, 0.04% Cu, 0.09% Pb, and 0.17% Zn (343 g/t AgEq) over 16.1m, including 12.24 g/t Au, 84 g/t Ag, 0.11% Cu, 0.2% Pb, and 0.3% Zn (1,029 g/t AgEq) over 5.1m, including 102.1 g/t Au, 120 g/t Ag, 0.13% Cu, 0.2% Pb, and 0.4% Zn (7,808 g/t AgEq) over 0.6m, plus 0.01 g/t Au, 78 g/t Ag, 0.07% Cu, 0.06% Pb, and 0.02% Zn (88 g/t AgEq) over 0.9m, plus 0.04 g/t Au, 86 g/t Ag, 0.1% Cu, 0.1% Pb, and 0.2% Zn (108 g/t AgEq) over 1m on Seitz Kelley Vein.
  • Prime Mining Corp., announced results from 13 new holes drilled at the Noche Buena deposit within its Los Reyes property in Sinaloa. Highlights include hole 21NB-22 with 16 g/t Au and 74 g/t Ag over a true width (TW) of 2.7m, plus 0.91 g/t Au and 44 g/t Ag over a TW of 24.3m, including 3.49 g/t Au and 82 g/t Ag over a TW of 0.9m; hole 21NB-23 with 75 g/t Au and 110 g/t Ag over a TW of 3.8m, plus 1.89 g/t Au and 76 g/t Ag over a TW of 19.7m, including 4.83 g/t Au and 250 g/t Ag over a TW of 3m; hole 21NB-21 with 92 g/t Au and 24 g/t Ag over a TW of 12.8m, plus 1.09 g/t Au and 66 g/t Ag over a TW of 4.3m; and hole 21NB-17 with 1.27 g/t Au and 13 g/t Ag over a TW of 12m, including 38 g/t Au and 8 g/t Ag over a TW of 2.2m. These drilling results have extended the size of the Noche Buena deposit. “The Noche Buena portion of the Central Structure has now been tested and mineralization identified along approximately 600 m of its known 1,000 m strike length.  The structure remains open along strike and at depth both to the northwest and the southeast. Phase 2 drilling is planned to test extensions to the northwest towards San Miguel, where there is strong potential to join the two deposits, and to the southeast where the structure has been traced in surface mapping”.
  • Avino Silver & Gold Mines Ltd., provided results from its Phase 2 drilling program conducted at its Avino property in Durango. The company informed that over 15,500m were drilled in 2021 testing several targets including Brecha de Bajo Vein, where the company made the discovery of a new vein splay called Bart Vein which appears to be mineralized. Highlights results from Brecha de Bajo and Bart Veins include hole NBX-21-02 with 0.06 g/t Au, 151 g/t Ag, 0.37% Cu, 0.06% Pb, and 0.2% Zn (211 g/t AgEq) over 1.20m, plus 0.08 g/t Au, 21 g/t Ag, 0.55% Cu, and 0.2% Zn (103 g/t AgEq) over 7.8m, and plus 0.06 g/t Au, 48 g/t Ag, 0.76% Cu, and 00.3% Zn (159 g/t AgEq) over 0.65m; hole NBX-21-03 with 0.14 g/t Au, 84 g/t Ag, 0.32% Cu, and 0.2% Zn (147 g/t AgEq) over 1.5m, plus 0.27 g/t Au, 72 g/t Ag, 0.26% Cu, 0.3% Pb, and 0.1% Zn (141 g/t AgEq) over 15.4m, including 0.3 g/t Au, 380 g/t Ag, 1.19% Cu, 0.4% Pb, and 0.2% Zn (547 g/t AgEq) over 1.05m, plus 0.84 g/t Au, 44 g/t Ag, 0.21% Cu, and 0.2% Pb (151 g/t AgEq) over 32.2m, including 1.58 g/t Au, 120 g/t Ag, 0.11% Cu, and 0.1% Pb (267 g/t AgEq) over 1.95m.
  • Capitan Mining Inc., reported results from six RC holes collared at its Peñoles project in Durango. The most significant drill intercept was encountered in hole CARC 21-48 with 0.39 g/t Au and 3 g/t Ag (0.42 g/t AuEq)  over 35.1m, including 1.08 g/t Au and 2 g/t Ag (1.1 g/t AuEq) over 4.6m, including 0.7 g/t Au and 2 g/t Ag (0.72 g/t AuEq) over 4.6m. This drill result extends mineralization 170m down-dip from hole 21-CARC-25. Capitan Mining informed that assays for 11 drill holes are pending. The drilling program will be resumed in late January.
  • Excellon Resources Inc., released results from its underground drilling program conducted at the Platosa property in Durango. Follow-up drilling on the 817 Zone below Manto 623 defined a zone of high-grade silver mineralization. Highlights include hole EX21UG76 with 4,035 g/t Ag, 25.2% Pb, and 11.8% Zn (5,089 g/t AgEq) over 0.4m, plus 1,430 g/t Ag, 12% Pb, and 21.7% Zn (3,905 g/t AgEq) over 1.8m; hole EX21UG60 with 2,398 g/t Ag, 14.2% Pb, and 33.2% Zn (3,905 g/t AgEq) over 1.8m; hole EX21UG812 with 1,267 g/t Ag, 7.5% Pb, and 19% Zn (2,124 g/t AgEq) over 2.8m; hole EX21UG769 with 4,060 g/t Ag, 29.7% Pb, and 3.3% Zn (4,939 g/t AgEq) over 0.9m; and hole EX21UG770 with 2,956 g/t Ag, 6.1% Pb, and 1.3% Zn (3,158 g/t AgEq) over 1m. The company also informed that underground drilling will continue testing below historical-mined areas for potential vertical zones.
  • Fabled Silver Gold Corp., released results from its ongoing drilling program at its Santa Maria project, Chihuahua. Hole SM20-48 encountered 0.04 g/t Au, 58 g/t Ag, 0.2% Pb, and 0.2% Zn (60 g/t AgEq) over 1.5m, plus 0.4 g/t Au, 90 g/t Ag, 0.2% Pb, and 0.5% Zn (111 g/t AgEq) over 24.5m, including 0.49 g/t Au, 113 g/t Ag, 0.3% Pb, and 0.7% Zn (139 g/t AgEq) over 17.1m, including 0.6 g/t Au, 129 g/t Ag, 0.4% Pb, and 0.8% Zn (160 g/t AgEq) over 7.5m, including 0.83 g/t Au, 210 g/t Ag, 0.6% Pb, and 1.4% Zn (253 g/t AgEq) over 3m, including 1.25 g/t Au, 315 g/t Ag, 0.6% Pb, and 1.2% Zn (379 g/t AgEq) over 1.50m.
  • Zacatecas Silver Corp., received permits for 13 new drill pads and applied for permits on additional 27 drill pads at its Panuco deposit in Zacatecas. The Company is currently drilling shallow angled holes in the northeast of the Panuco North Vein to test the near surface down-dip extension of vein outcrops and shallow historical workings. It also expects to receive soon the approval of an application for permits to drill El Cristo vein system, which was submitted to SEMARNAT in December 2021.
  • Silver Dollar Resources Inc., announced that exploration drilling has recommenced at its La Joya project, Durango. The company completed 5 holes on the Noria portion of the property for a total of 1,134m before the Christmas break with the aim of testing possible structural extensions of known mineralized zones identified in historical drilling. Sample results from these holes will be reported once they are available.
  • GoGold Resources Inc., release results from 13 drill holes collared at Mololoa Area within its Los Ricos North project, Jalisco. Drilling highlights include hole LRGM-21-066 with 1.21 g/t Au and 242g/t Ag (4.44 g/t AuEq or 333 g/t AgEq) over 11.3m, including 5.2 g/t Au and 1,143 g/t Ag (20.44 g/t AuEq or 1,533 g/t AgEq) over 1.4m; hole LRGM-21-068 with 0.6 g/t Au and 155 g/t Ag (2.68 g/t AuEq or 201 g/t AgEq) over 12.9m, including 3.56 g/t Au and 872 g/t Ag (15.19 g/t AuEq or 1,139 g/t AgEq) over 0.7m; hole LRGM-21-077 with 1.51 g/t Au and 376 g/t Ag (6.52 g/t AuEq or 489 g/t AgEq) over 36.3m, including 6.94 g/t Au and 1,683 g/t Ag (29.78 g/t AuEq or 2,204 g/t AgEq) over 6.5m, including 21.8 g/t Au and 5,040 g/t Ag (89 g/t AuEq or 6,675 g/t AgEq) over 1m, plus 5.02 g/t Au and 1,385 g/t Ag (2,349 g/t AuEq or 1,762 g/t AgEq) over 1.6m; and hole LRGM-21-089 with 0.81 g/t Au and 151 g/t Ag (2.82 g/t AuEq or 212 g/t AgEq) over 24.1m, including 2.87 g/t Au and 426 g/t Ag (8.56 g/t AuEq or 641 g/t AgEq) over 4.2m, including 4.18 g/t Au and 748 g/t Ag (14.15 g/t AuEq or 1,061 g/t AgEq). The company is pleased with the drilling results on Mololoa Area and will continue its aggressive resource expansion drilling program at Los Ricos North deposit. GoGold also will commence drilling at the Cabrera zone, which is the newest target for Los Ricos North deposit.

ON DEALS AND CORPORATE ISSUES

  • Ranchero Gold Corp., announced the appointment of its President effective immediately (Santa Daniela project, Sonora).
  • Starcore International Mines Ltd., announced the appointment of its new President and Director. This appointment follows the resignation of Robert Eadie as President of the Company.   Mr. Eadie remains as Chairman, CEO and a director of the Company.  (San Martin mine, Queretaro).
  • Capitan Mining Inc., entered into a purchase agreement to acquire a portfolio of royalties including a 2% royalty on the Capitan Gold oxide deposit in Durango from Exploraciones Altiplano. Total purchase price of royalty portfolio is USD $1M over two years, payable in cash and shares. “Any shares issued to Altiplano are subject to right of first refusal (ROFR) allowing Capitan to market and place shares with investors if Altiplano elects to sell. This transaction with Altiplano in combination with Capitan’s contractual option to retire Riverside Resources 1% royalty for CAD $250K will leave the Peñoles project royalty free and will enhance overall project economics for investors.
  • Endeavour Silver Corp., entered into a definitive agreement to acquire the Pitarrilla project in Durango State from SSR Mining Inc., for total consideration of USD $70M and a 1.25% NSR. The USD $70M will consists of USD $35M in Endeavour shares and a further USD $35M in cash or in Endeavour shares at the election of SSR Mining. The number of Endeavour shares to be issued will be based on a deemed price of USD $4.085 per share.

ON SOCIAL RESPONSIBILITY

  • Compañia Minera Cuzcatlán (Fortuna Silver Mines Inc.), along with local municipal authorities from the Valles Centrales de Oaxaca and Cuenca de Papaloapan Regions delivered toys to more than 20,000 girls and boys from Oaxaca. The delivery of toys is an example of the coordinated work that Compañía Minera Cuzcatlán carries out permanently with different communities, as part of its commitment to generate shared development and well-being in Oaxaca.

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, secondary copper staining on an IOCG project in Sonora, Mexico.  Photo by Miguel A Heredia.

The Mining and Exploration News in Mexico: Highlights on the Fifth Week of October, 2020

By Jorge Cirett

During the 44th week of the year (October 26th to November 1st, 2020), at least 33 press releases were announced by companies working in Mexico. To note, eight companies posted exploration advances on their projects, another eight companies posted quarterly reports and six informed on project development. ON MEXICO ISSUES, Mexico is the top silver producer in the world, and a major producer of another eleven metals and minerals. Camimex received the Responsible Industry award. ON EXPLORATION, in Sonora, Riverside Resources commenced drilling at is Cuarentas project; Tocvan Ventures informed on exploration advances at Pilar. In Chihuahua, Radius Gold is preparing the fourth drilling program at Amalia. In Sinaloa, Kootenay Silver released drilling results from the Copalito project; Vizsla Resources added a fifth rig at Panuco; Brigadier Gold intersected the San Agustín vein at Picachos. In Jalisco, Candente Gold released a high-grade gold result From Cocula. In Puebla, Almaden Minerals is exploring around the Ixtaca project.  ON MINING, Mexus Gold is nearing the completion of a leach pad at Santa Elena in Sonora. Santacruz Silver, Capstone Mining, Alamos Gold, Coeur Mining, Agnico Eagle, Newmont, McEwen Mining and Consolidated Zinc released third quarter 2020 results. ON FINANCING, Aztec Minerals received $497 K from share purchase warrants. ON RESOURCES AND DEVELOPMENT, Prime Mining released geochemical results from Los Reyes. Inomin Mines submitted a technical report on La Gitana project. Agnico Eagle informed on drilling results at Santa Gertrudis, Sonora. Torex Gold released drilling results from two zones at the El Limón-Guajes mine. Excellon Resources filed a technical report on the Evolución project in Zacatecas. Azure informed on metallurgical testing on the Mesa de Plata deposit at the El Alacrán project in Sonora. ON DEALS AND CORPORATE ISSUES, Alien Metals intends to market its San Celso and Los Campos projects in Zacatecas. One World Lithium is to do some research on a novel lithium extraction process. Grupo Mexico informed on its 2021 investments. ON SOCIAL RESPONSIBILITY. Grupo Peñoles, Minera Capela, Grupo Peñoles and Minera Cuzcatán informed on health and social programs.

ON MEXICO ISSUES

  • México is the top silver producer in the world, and is within the ten top producers of fluorite (2nd), sodium sulfate (3rd), celestite (3rd), molybdenum (5th), lead (5th), zinc (6th), magnesium sulfate (6th), gypsum (7th), barite (8th), copper (8th) and gold (9th).
  • Camimex (Cámara Minera de México) received the Responsible Industry award by CONCAMIN Foundation.

ON EXPLORATION

  • Radius Gold Inc. is preparing the phase 4 drilling program at its Amalia project in Chihuahua, operated by Pan American Silver Corp.. The program is to test down dip and lateral expansions of the high-grade mineralization in the San Pedro structure previously defined.
  • Brigadier Gold Ltd. informed the three first diamond holes of a 5,000 m program at its Picachos project in Durango have intersected the San Agustín vein up to 125 m below the Nuevo Carrito adit. The three holes test the same vein section at different levels, with the shallower first hole going through underground workings, and the other two intercepting 10 and 7 meters of quartz-carbonate veining respectively. Results pending.
  • Riverside Resources Inc. commenced a 2,000 m diamond drill program at the Cuarentas project in Sonora, with partner Hochschild Mining PLC.. The initial targets are the Sant Rosalia mine and the Santa Rosalia Sur vein target area. These target zones are located 1 km apart, within a large epithermal system in which five parallel resistivity anomalies that have been interpreted as possible blind quartz vein zones. “The current drill program will form part of Hochschild’s US$700,000 minimum exploration commitment in year one”.
  • Kootenay silver Inc. released results from holes 5 to 33 of the first drill campaign at Copalito, in Sinaloa. The program designed for 3,000 meters ended drilling 4,153 meters in over 40 drill holes. Highlighted intervals comprise 18.0 m @ 63 gpt Ag, 0.15 gpt Au, 0.47% Pb+Zn (including 1.0 m @ 936 gpt Ag, 0.29 gpt Au, 3.31% Pb+Zn); 1.2 m @ 51 gpt Ag, 2.28 gpt Au, 6.18% Pb+Zn; 0.7 m @ 307 gpt Ag, 0.154 gpt Au, 0.15% Pb+Zn; 0.40 m @ 209 gpt Ag, 0.196 gpt Au, 0.67% Pb+Zn; 1.2 m @ 45 gpt Ag, 0.86 gpt Au, 3.46% Pb+Zn; 2.7 m @ 101 gpt Ag, 0.7 gpt Au, 2.28% Pb+Zn (including 0.2 m @ 59 gpt Ag, 7.05 gpt Au, 13.55% Pb+Zn. “Drilling tested 7 of 9 known veins along a cumulative strike length of 2,500 meters of an estimated 10,000 meters of vein length. Mineralized vein widths in drill hole varied from less than one meter to 56 meters. The deepest intercept was 123 meters below surface and graded 0.689 gpt gold, 101 gpt silver, and 2.28% lead plus zinc over 2.7 meters including 7.0 gpt gold, 59 gpt silver and 13.55% lead plus zinc over 0.2 meters”.
  • Almaden Minerals Ltd. announced a field exploration program in the company’s property surrounding its Ixtaca project in Puebla. The “SE Alteration Zone” covers volcanic hosted clay alteration, and is being assessed by use of satellite alteration studies, geophysical studies and soil, rock and drilling geochemical data. Satellite imagery processes have been able to identify a 150 by 650 meters area in which the presence of the favorable clay buddingtonite is suspected.
  • Vizsla Resources Corp. informed a fifth drill rig arrived at the Panuco project in Sinaloa. The company has completed 16,700 m, and intends to complete 31,300 m of diamond drilling in the Napoleon, Cordon del Oro and Animas vein corridors. Four holes have been completed into the Tajitos vein, located 900 m SE of the first Napoleon discovery. “The Tajitos vein zone is composed of a quartz breccia vein with an early white locally banded quartz supporting andesite lithic clasts, followed by a later white to greyish quartz supporting brecciated clasts of earlier white quartz veins. This zone was then cut by a later white to clear quartz vein with local dark bands or patches of fine-grained sulphides that is cutting a zone of quartz pseudomorphs after bladed calcite and pink rhodochrosite. The better grades are in the earlier breccias associated with dark bands or dark patches of very fine-grained disseminated sulphides”.
  • Tocvan Ventures Corp. informed on exploration advances at the Pilar project in Sonora. A structural analysis has been completed, with gold and silver mineralization being controlled by faults, fault intersections and dilated structures. Rock and grab sample highlighted results include 1.3 gpt Au, 5 gpt Ag, 0.34% Cu; 3.2 gpt Au, 8 gpt Ag, 0.35% Cu; 0.2 gpt Au, 2 gpt Ag, 1.25% Cu; 0.9 gpt Au, 17 gpt Ag, 0.73% Cu; 3.8 gpt Au, 57 gpt Ag, 0.85% Cu; nil Au, 6 gpt Ag, 1.91% Cu; 0.1 gpt Au, 3 gpt Ag, 1.40% Cu; 5.6 gpt Au, 84 gpt Ag, 1.71% Pb; 9.3 gpt Au, 76 gpt Ag, 0.12% Cu, 2.15% Pb; 0.5 gpt Au, 323 gpt Ag, 0.24% Pb; 2.2 gpt Au, 15 gpt Ag, 0.26% Pb; 4.3 gpt Au, 172 gpt Ag, 1.12% Pb; 23.7 gpt Au, 116 gpt Ag; 4.4 gpt Au, 44 gpt Ag, 0.11% Cu; 7.5 gpt Au, 42 gpt Ag. Drill targets have been selected, and permitting for the program is underway.
  • Candente Gold Corp. reported high-grade sample results from its Cocula project in Jalisco. Past reported samples returned 5.67 gpt Au over 6 meters and 4.32 gpt Au over 8 meters, whereas sampling of a selected 10 cm zone in the hanging wall of a quartz vein-breccia  returned 59.0 gpt Au, 729 gpt Ag. “The mineralization in the high grade sample is described as dark grey to milky white banded quartz in vein and breccia with galena, pyrite and quartz crystals filling open spaces”. A 0.75 m  sample collected adjacent to the selected sample returned 0.18 gpt Au, 19 gpt Ag, comprising “milky white and gray to dark gray quartz breccia vein with fine grained pyrite, +1% galena and trace malachite”.

ON MINING

  • Santacruz Silver Mining Ltd. Released third quarter results for 2020, with a total of 977.7 K Oz AgEq. At Zimapan in Hidalgo, 164.8 K tonnes were processed @ 73 gpt Ag, 0.72% Pb, 2.40% Zn, 0.33% Cu, recovering 72.3% Ag to produce 282.8 K Oz Ag, 1,048 tonnes Pb, 2,841 tonnes Zn, 395 tonnes Cu (or 921 K Oz AgEq). At Rosario in San Luis Potosi 11,794 tonnes were milled @ 66 gpt Ag, 0.24 gpt Au, 0.31% Pb, 2.06% Zn, recovering 85.9% Ag to produce 21.4 K Oz Ag, 59 Oz Au, 32 tonnes Pb, 200 tonnes Zn (or 56.7 K Oz AgEq). At Veta Grande in Zacatecas, 44 k tonnes were milled @ 99 gpt Ag, 0.24 gpt Au, 1.45% Pb, 2.11% Zn, recovering 44.6% Ag to produce 62.4 K Oz Ag, 139 Oz Au, 370 tonnes Pb, 519 tonnes Zn (or 214.3 K Oz AgEq.
  • Mexus Gold US. Informed the construction of a new leach pad is nearing completion at its Santa Elena mine in Sonora.
  • Capstone Mining Corp. released production and financial reports for the third quarter 2020, including figures from its Mexican operations. At Cozamin, in Zacatecas, the company produced 10.6 M Lb Cu, at cash cost $0.36 pr Lb Cu.
  • Alamos Gold Inc. reported third quarter 2020 results, including figures from its Mexican operations. At Mulatos, in Sonora, 1.32 M tonnes were mined and 1.89 M tonnes stacked @ 0.91 gpt Au, with an average recovery rate of 74% to produce 41,100 Oz Au at cash cost $746 per Oz Au and mine-site AISC of $928 per Oz Au.
  • Coeur Mining Inc. reported third quarter 2020 financial results, including figures from its Mexican operations. At Palmarejo, in Chihuahua, 492.5 K tonnes were milled, averaging 2.28 gpt Au, 136 gpt Ag and recovering 91.3% Au, 82.8% Ag to produce 29,296 Oz Au, 1.78 M Oz Ag, at “Adjusted CAS per AuOz” of $602 and “Adjusted CAS per AgOz” of $10.06. “Coeur expects to continue with seven active rigs during the fourth quarter, primarily focusing on resource expansion drilling as well as infill drilling on select targets. Three expansion rigs have recently been mobilized to focus on growing mineralized material between Independencia and the mill”.
  • Agnico Eagle Mines Ltd. released third quarter results for 2020, including figures from its Mexican operations. At Pinos Altos, in Chihuahua, 558 K tonnes were processed (6,065 tpd) @ 1.89 gpt Au to produce 30,937 Oz Au at cash cost $677 per Oz Au and production cost of $1,071 per Oz Au. High-grade gold mineralization has been extended at the Cubiro deposit by underground drilling, whereas at Reyna de Plata and Reyna de Plata East drilling returned high-grade Au and Ag at shallow depths. At Creston Mascota, a Pinos Altos satellite pit, 188 K tonnes were processed (2,043 tpd) @ 1.19 gpt Au, to produce 6,567 Oz Au at production cost per Oz Au of $1,155 and total cash cost per Oz Au of $771. At La India, in Sonora. 1.56 M tonnes were processed (16,946 tpd) @ 0.72 gpt Au to produce 22,776 Oz Au at production costs per Oz Au of $707 and total cash cost per Oz Au of $740.
  • Newmont. Released third quarter 2020 results including some figures from its operations in Mexico. At Peñasquito, in Zacatecas, 130,000 Oz Au were sold, with an AISC of $835 per Oz Au. Also 215,000 Oz of AuEq were sold, with an AISC of $735 per Oz AuEq.
  • McEwen Mining Inc. reported production results for the third quarter 2020, including figures from its operations in Mexico. At El Gallo, in Sinaloa, residual leaching produced 1,900 Oz AuEq.
  • Consolidated Zinc Ltd. informed on quarterly activities ended on September 30, 2020. On-site processing and a plant refurbishment plan were approved. During the quarter 10,053 tonnes of ore were mined,, 10,352 tonnes of ore processed @ 12.2 % Zn, 7.9% Pb, 48 gpt Ag with recoveries of 69.1% for Zn, and 36.2% for Pb. The operating cost was $1.05 per Lb Zn.

ON FINANCING

  • Aztec Minerals Corp. received an aggregate of $497 K from the exercise of share purchase warrants (Cervantes, Sonora).

ON RESOURCES AND DEVELOPMENT

  • Prime Mining Corp.  released surface and underground sampling results from its Los Reyes project in Sinaloa. Some of the underground highlighted results: 4.5 m @ 0.84 gpt Au, 38 gpt Ag; 6 m @ 0.76 gpt Au, 24 gpt Ag; 46 m @ 2.21 gpt Au, 95 gpt Ag (including 2 m @ 29 gpt Au, 226 gpt Ag); 19.5 m @ 1.69 gpt Au, 62 gpt Ag. Some of the highlighted trench results: 21 m @ 0.48 gpt Au, 43 gpt Ag; 9 m @ 0.82 gpt Au, 96 gpt Ag. The company states these results continue to show resource expansion potential.
  • Inomin Mines Inc. has submitted a technical report to the Exchange as part of the information requested by the Exchange to complete the acquisition of the La Gitana project in Oaxaca.
  • Agnico Eagle Mines Ltd. informed on exploration at its 44,145 ha Santa Gertrudis project in Sonora. During the third quarter 2020 drilling at Santa Gertrudis totaled 21 holes (7,856 m) focused on expanding mineral resources and exploring for new mineralized structures in the Trinidad trend, which contains the Amelia deposit and the Espiritu Santo zone. Some highlighted results from the Amelia and Espiritu Santo: 6.5 m @ 1.2 gpt Au, 4 gpt Ag; 5.5 m @ 0.9 gpt Au, 142 gpt Ag; 4.5 m @ 2.8 gpt Au, 11 gpt Ag; 10.3 m @ 1.3 gpt Au, 1 gpt Ag; 4.6 m @ 2.2 gpt Au, 2 gpt Ag; 5.6 m @ 3.2 gpt Au, 2 gpt Ag; 11.5 m @ 1.6 gpt Au, 9 gpt Ag; 10.5 m @ 2.6 gpt Au, 3 gpt Ag; 4.2 m @ 5.6 gpt Au, 8 gpt Ag.
  • Torex Gold Resources Inc. released drill results from the ongoing program at El Limón-Guajes underground mine, which includes the Sub-Sill deposit and the El Limón Deep deposit. At the Sub-Sill deposit, highlighted core-length intercepts comprise 9.1 m @ 30.70 gpt Au, 3 gpt Ag, 0.07% Cu; 12.2 m @ 23.88 gpt Au, 3 gpt Ag, 0.10% Cu; 18.9 m @ 14.85 gpt Au, 30 gpt Ag, 1.73% Cu; 19.6 m @ 6.34 gpt Au, 7 gpt Ag, 0.40% Cu; 15.4 m @ 17.03 gpt Au, 13 gpt Ag, 0.49% Cu; 28.5 m @ 13.11 gpt Au, 3 gpt Ag, 0.1% Cu; 11.8 m @ 21.60 gpt Au, 29 gpt Ag, 1.29% Cu. At the El Limón Deep deposit, highlighted core length intercepts comprise 6.9 m @ 20.37 gpt Au, 12 gpt Ag, 0.15% Cu; 13.2 m @ 15.98 gpt Au, 28 gpt Ag, 0.79% Cu; 9.8 m @ 10.90 gpt Au, 6 gpt Ag, 0.10% Cu; 15.5 m @ 9.55 gpt Au, 2 gpt Ag, 0.07% Cu; 10.0 m @ 9.20 gpt Au, 8 gpt Ag, 0.19% Cu.
  • Excellon Resources Inc. filed a technical report on the Evolución polymetallic project in Zacatecas. The updated mineral resource estimate forwards an indicated resource of 6.4 M tonnes @ 64 gpt Ag, 0.09 gpt Au, 1.00% Pb, 1.14% Zn containing 13.15 M Oz Ag, 19 K Oz Au, 140.7 M Lb Pb, 161.5 M Lb Zn (or 35.1 M Oz AgEq) and inferred resources of 14.96 M tonnes @ 39 gpt Ag, 0.10 gpt Au, 0.75% Pb, 1.15% Zn, containing 18.5 M Oz Ag, 49 K Oz Au, 247.5 M Lb Pb, 377.7 M Lb Zn (or 64.8 M Oz AgEq).
  • Azure Minerals Ltd. informed it has sent three metallurgical samples from the Mesa de Plata deposit on its Alacrán project in Sonora, to be tested. The new metallurgical tests will be focused in recovering a silver mineral, romeite by gravity separation methods. “The tailings from the gravity separation will then undergo grinding, flotation and cyanide leaching to maximise the overall silver recovery”.

ON DEALS AND CORPORATE ISSUES

  • Alien Metals Ltd. Informed that “following the recent earn-transaction with Capstone Mining regarding the Donovan 2 Cu-Au project in Zacatecas, the company is looking  to a similar marketing process for its San Celso and Los Campos projects, also in Zacatecas.
  • One World Lithium Inc. is to implement a proof of concept program for a lithium separation innovative technology. The program is estimated to take three months and cost CAD$100 K. “The parties have agreed to complete a formal agreement if the Technology is proven to have commercial applications. Such an agreement would include cash payments, issuance of common shares and a royalty payment from OWL” (Salar del Diablo, Baja California).
  • Grupo Mexico. informed investments for US $2.1 billion. The resources are destined to mining projects like Tía María in Perú, as well to investments on its rail services, wind plants and terminals.

ON SOCIAL RESPONSIBILITY

  • Grupo Peñoles and the municipal government at Sombrerete, Zacatecas) realized free Covid tests in the community.
  • Industrias Peñoles and Oxxo in Zacatecas provided Covid protection material to the municipality.
  • Grupo Mexico and Grupo Peñoles allied with the Sombrerete municipal government to realize fast Covid-19 tests.
  • Minera Capela Peñoles funded the construction of a school wall in Teloloapan, Guerrero.
  • Compañía Minera Cuzcatán initiated a scholarship program to benefit 134 students in San José del Progreso in Oaxaca.

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

On the image below: The porphyry from Cerro San Pedro, San Luis Potosí. Picture by Jorge Cirett.

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

Mn-Fe/calcite fault-bx in rhyolitic tuffs.

By Miguel A Heredia

During the first week of the year (December 31st to January 05th, 2020), at least 19 press releases were announced by companies working in Mexico, with six announcing financial rounds, three disclosing deals and corporate issues, three commenting on Mexican issues, two communicating production results, two reporting on resources and development of their projects, two discussing issues on social responsibility, and one informing on exploration results.  ON MEXICO ISSUES, La Caridad mine in Sonora, one of the most precious jewels of the Mexican mining. Lithium can turn Mexico into the planet´s rechargeable battery. Mexico announced USD $4.65B in capital expenditure for new mining projects in 2020-2021.  ON EXPLORATION, In Jalisco, GoGold filed a NI 43-101 Technical Report on its Los Ricos project. ON MINING, Telson reported some of the reactivation activities carried out at its Campo Morado mine in Guerrero to bring it back into production by mid January 2020. Newmont Goldcorp provided an outlook for the year 2020 on its Peñasquito mine in Zacatecas. ON FINANCING, Sonoro Metals received proceeds of $875K from the sale to Agnico of the 1% NSR on the Chipriona property in Sonora. First Mexican closed the third tranche of its private placement for gross proceeds of $95K (Guadalupe project, Sonora).  Great Panther announced USD $10M concentrate prepayment (Guanajuato mine complex, Guanajuato). Telson announced its intention to conduct a non-brokered private placement for gross proceeds of up to CAD $3M (Campo Morado mine, Guerrero). SilverCrest announced that SSR mining elected to exercise its SilverCrest equity participation with CAD $13.25M private placement (Las Chispas project, Sonora).  ON RESOURCES AND DEVELOPMENT, Sierra Metals updated mineral resource estimate for its Bolivar mine in Chihuahua.  Leagold announced expansion plans for its Los Filos mine in Guerrero. ON DEALS AND CORPORATE ISSUES, Prospero sold its Mexican subsidiary Minera Fumarola S.A. de C.V. to an arm’s length purchaser, Aquatio S.A. de C.V. of Jalisco State, Mexico (Pachuca SE project, Hidalgo). Equinox Gold and Leagold mailed management information in order to approve business combination and create a premier Americas Au producer (Los Filos mine, Guerrero). Goldgroup provided a legal update on its dispute with DynaResources concerning the San Jose de Gracia mine in Sinaloa. ON SOCIAL RESPONSIBILITY, Fresnillo plc created more than 9,000 jobs in 2019. Zacatecas students created a protective device for miners to reduce accidents.

ON MEXICO ISSUES

  • La Caridad mine in Sonora, owned by the Grupo Mexico, is one of the most precious jewels of the Mexican mining. Its activity dates back to the pre-Hispanic era, but which had its greatest boom in the early twentieth century and that today is recognized in the history of our country as a factor of advancement and economic development for all Mexicans. Today it is the best integrated mine in the world, a mine where Cu is split and extracted for plate refinement. But this is not the only thing that is exploited in La Caridad, because large quantities of refined Au and Ag are also obtained, as well as Moly, a metal highly prized for its ability to create alloys with steel. But beyond its metallurgical production, La Caridad is also important for the entire region and the surrounding villages, as the mine generated multiple infrastructure works, thus generating a chain of well-being for its inhabitants. Developing new schools, cultural, sports facilities, housing, personnel transport systems and a supply network for workers, known as the “miner’s stores”, in addition to thousands of direct and indirect jobs.
  • Lithium can turn Mexico, in the planet´s chargeable battery. After one of the biggest Li deposit was discovered in Sonora by Bacanora, a Canadian mining company. The technology industry has set its sights on the country with multiple requests from mining companies that want to exploit it, including Chinese corporations. Given this news, the head of the SEMARNAT, Victor Manuel Toledo, described the potential that this represents for Mexico in terms of tax collection and economic recovery, saying that worldwide Lithium has become “the new oil.” Bacanora, in collaboration with the Chinese Ganfeng already plans to raise at least USD $400M to request a license from the Mexican government for the exploitation of a Li quarry allegedly made up of 4.5 M tonnes of this element that has detected, which would later generate profits for these companies of at least USD $1B.
  • Mexico announced USD 4.65B in capital expenditure for new mining projects in 2020-2021. A series of mining companies will commence to build various mining projects in Mexico in 2020. Minera Alamos, expects to initiate construction of its Santana-Los Verdes project in Sonora in Q1, 2020 with an investment of USD $7.55M, which includes the construction of a coal plant, platforms, ponds and various earthworks at the mine site. The complex should start producing in Q3, 2020. It also plans to begin construction of its la Fortuna mine in Durango at the end of 2020 at a total cost of USD $26.9M. Torex Gold Resources Inc., expects to start the construction of its Media Luna mine in Guerrero in Q1, 2021, with a capital expenditure of USD $482M. Media Luna has a capacity of 47M Lb Cu, 170K Oz Au, and 1.7M Oz Ag per year. Prime Mining Corp., plans to begin construction of its Los Reyes project in Sinaloa in June 2021 and end in December of the same year. The capital expenditure of the project is set as USD $89.5M and its capacity is 35K Oz Au and 253K Oz Ag per year, with a useful mine life of 11 years. VVC Exploration Corp., owns the USD $4B Samalayuca copper project in Chihuahua. Samalayuca, currently awaiting a construction decision, has an estimated useful mine life of 16 years. Southern Copper Corporation, is the owner of Mina Pilares in Sonora, which will produce Cu in concentrates to be processed in the La Caridad mine. Mina Pilares, currently awaiting a construction decision, should start producing in H2, 2021. Southern reported that it has already obtained environmental permits and is currently trying to acquire additional land.

ON EXPLORATION

  • GoGold Resources Inc., filed a NI 43-101 Technical Report on its Los Ricos project in Jalisco. Work done by GoGold confirms that the drilling program continues to intersect wide zones of Au & Ag from surface to vertical depths of 300m. The Los Ricos deposit is still open along strike to the north and at depth. It also concludes that although high-grade portions of the vein have been mined out, the structures still have wide mineralized intervals potentially amenable to surface mining methods. A budget of USD $5.3M was proposed to continue the exploration work at Los Ricos project in Jalisco for the year 2020. The company also announced that plans to complete an NI 43-101 compliant Mineral Resource Estimate on Los Ricos in 2020.

ON MINING

  • Telson Mining Corporation, reported some of the reactivation activities carried out at its Campo Morado mine in Guerrero to bring it back into production by mid January 2020. The company has already restored electrical power to the mine site, and personnel have commenced dewatering the mine. Access has been restored to the El largo Zone where there are approximately 50K tonnes of ore available to transport to the mill site that along with 20K tonnes of ore previously transported to the mill will be available for processing upon start-up. Personnel are also advancing on the process of checking, servicing, and repairing as necessary, all mill processing equipment, mobile mining equipment, underground mining equipment, ventilation systems and safety equipment, etc.
  • Newmont Goldcorp, provided a 2020 outlook for its Peñasquito mine in Zacatecas. It plans to produce 575K Oz Au at a cash cost of $570 per Oz Au and AISC of $725 per Oz Au. In addition, the company plans to produce 30 M Oz Ag, 200M Lb Pb, and 425M Lb Zn, at a cash cost of $515 per Oz AuEq and AISC of $805 per Oz AuEq.

ON FINANCING

  • Sonoro Metals Corp., received proceeds of $875K from the sale to Agnico of the 1% NSR on the Chipriona property, located in the Mulatos mining district in Sonora. The NSR originated from the sale of the Chipriona property to Agnico in December 2019 for the amount of $4M plus the NSR.
  • First Mexican Gold Corp., closed the third tranche of its private placement for gross proceeds of $95K. In total, the company issued 20M shares for gross proceeds of $1M (Guadalupe project, Sonora).
  • Great Panther Mining Limited, entered into a USD $10M prepayment agreement with the IXM Group for 100% of the Au-Ag concentrates produced from the Guanajuato mine complex in 2020 and 2021. The prepayment will be repaid on December 31, 2020 and will bear interest at an annual rate of 3-month USD LIBOR plus 5%.
  • Telson Mining Corporation, announced its intention to conduct a non-brokered private placement for gross proceeds of up to CAD $3M (Campo Morado mine, Guerrero).
  • SilverCrest Metals Inc., announced that SSR Mining elected to exercise its shareholder participation right, pursuant to an agreement between the company and SSR Mining dated November 28, 2018. Accordingly, SSR Mining has agreed to purchase 1,819,074 shares of SilverCrest for aggregate proceeds of CAD $13.25M at the same price of CAD $7.28 as the bought deal public offering announced by SilverCrest on December 3, 2019. SSR entered into a transaction with a third party to divest of the 1,819,074 SilverCrest common shares to be acquired pursuant to the private placement at a price of CAD $8.45 per common share for a pre-tax gain of approximately CAD $2.1M. Net proceeds raised by SilverCrest will be used to continue exploration and development of its Las Chispas project in Sonora.

ON RESOURCES AND DEVELOPMENT

  •  Sierra Metals Inc., updated mineral resource estimate for its Bolivar mine in Chihuahua. This mineral resource update includes 13,698m of infill drilling and 41,553m of exploration drilling. Total indicated mineral resources are 11.63M tonnes of 0.95% Cu, 18 g/t Ag, and 0.24 g/t Au (or 1.16% CuEq) for a total of 244.3M Lb Cu, 6.8M Oz Ag, and 90.4K Oz Au (300.1M Lb CuEq). Total inferred mineral resources are 16.69M tonnes of 0.93% Cu, 17 g/t Ag, and 0.30 g/t Au (or 1.16% CuEq) for a total of 342.1M Lb Cu, 9M Oz Ag, and 162.7K Oz Au (428.1M Lb CuEq). Sierra Metals plans to update a PEA for the Bolivar mine which is expected to be released in Q3, 2020. Goal of the PEA is to increase tonnage throughput in excess of 5,000 tonnes per day, which is expected to be reached by the end of 2020.
  • Leagold Mining Corporation, announced a USD $180M expansion plans for its Los Filos mine in Guerrero. Expansion began in July, with the final phase of development scheduled to conclude by end-2021. The Los Filos expansion will play a key role to consolidate the recently merged Equinox-Leagold combined company as a producer of 1M Oz Au per year in 2021, based on output from current mines in Brazil, Mexico and USA. This expansion will position Los Filos mine as one of the Mexico´s biggest Au mines, combining underground and open pit operations across the Los Filos, Bermejal and Guadalupe deposits. The expansion is expected to roughly double production at Los Filos in 2021 from around 200K Oz Au produced in 2019 to 400K Oz Au.

ON DEALS AND CORPORATE ISSUES

  • Prospero Silver Corp., sold its Mexican subsidiary Minera Fumarola S.A. de C.V. to an arm’s length purchaser, Aquatio S.A. de C.V. of Jalisco State, Mexico, for a cash purchase price of USD 5K, and assumption of all statutory liabilities and obligations of the subsidiary in Mexico, including property maintenance and abandonment, statutory employee severance, and tax obligations, estimated to aggregate to USD $95K.
  • Equinox Gold Corp., and Leagold Mining Corporation, mailed management information to approve business combination to create a premier Americas Au producer. “Pursuant to the transaction, Leagold shareholders will receive 0.331 of an Equinox Gold share for each Leagold share held. At closing, existing Equinox Gold and Leagold shareholders will own approximately 55% and 45% of the combined company, respectively, on an issued share basis. The combined company will continue as Equinox Gold under the ticker symbol “EQX” on both the Toronto Stock Exchange and the NYSE American Stock Exchange” (Los Filos mine, Guerrero).
  • Goldgroup Mining Inc., provided a legal update on its dispute with DynaResources concerning the San Jose de Gracia mine in Sinaloa. It is awaiting the written judgment of the 11th Federal Circuit Collegiate Court in Mexico to be published to assess its contents and reason for judgment. The Company will continue to pursue all legal avenues in Mexico to achieve a favorable resolution to the DynaUSA dispute. It also will continue the enforcement of the final judgment from the US District Court for the District of Colorado which confirmed the company´s previously announced favorable award in the arbitration against DynaUSA.

ON SOCIAL RESPONSIBILITY

  • Fresnillo plc., generated more than 9,000 jobs in 2019. The company is making every effort to be competitive, to continue generating jobs for Fresnillo and generate economic benefits for the population.
  • Zacatecas students, created a protective device for miners to detect risk of fatigue, heart rate and blood pressure. The intelligent device called EPIMIN is set inside the hard hat of the miners to detect fatigue of the miners, based on heart rate, blood pressure, and temperature, with the variable that, in case of presenting any irregularity, the device will issue a sensory alert to the user and will alert a monitoring center located on surface with the person in charge. “An investment in technology like this will allow mining companies to control work risks, anticipate them, prevent them and get to the longed for zero accidents.”

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-Fe/calcite fault-bx hosted in rhyolites in a prospect in Chihuahua, Mexico.  Photo by Miguel A Heredia.

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

chalcedonic quartz vein

By Miguel A Heredia

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

ON MEXICO ISSUES

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

ON EXPLORATION

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

ON MINING

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

ON FINANCING

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

ON RESOURCES AND DEVELOPMENT

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

 ON DEALS AND CORPORATE ISSUES

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

ON SOCIAL RESPONSIBILITY

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

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

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

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

Quartz vein displaying lattice  bladed texture

By Miguel A Heredia

During the thirty-nine week of the year (September 23th to September 29th, 2019), at least 21 press releases were announced by companies working in Mexico, with seven informing on exploration results, six disclosing deals and corporate issues, three announcing financial rounds, two communicating production results, one reporting on resources and development of their projects, one commenting on Mexican issues, and one notifying on social responsibility.  ON MEXICO ISSUES, Los Gatos mine was inaugurated in San José del Sitio, Chihuahua with an investment of USD $366M.  ON EXPLORATION, In Baja California Norte, One World Lithium announced the continuation of the phase 3 drilling program at its Salar del Diablo project. In Sonora, Ridgestone released historical assays results from its Rebeico project. In Chihuahua, Kootenay reported drilling results from its Columba project.  In Durango, Canasil reported high grade sampling results from its Nora property. In Jalisco, GoGold released drill results from its Los Ricos project. In Veracruz, Mexican Gold announced 3,000m of drilling and its exploration plan for the remainder 2019 on its Las Minas project, and Azucar Minerals released drilling results from its El Cobre project. ON MINING, Mexus Gold provided an update on its Santa Elena mine in Sonora. Azure also provided an update on the first phase small-scale mining program at its Oposura project in Sonora. ON FINANCING, Aztec Minerals applied to the TSX to extend the term of 2,551,250 common share purchase warrants (Cervantes project, Sonora). Silver Viper closed a private placement for gross proceeds of $4M (La Virginia project, Sonora). Gold Resource declared its monthly dividend for September 2019 to shareholders (Arista mine, Oaxaca).  ON RESOURCES AND DEVELOPMENT, Prime informed that the company completed a formal visit to its Los Reyes property in Sinaloa, to attend meetings with local stakeholders, to secure surface access and begin site preparation, and to initiate exploration and engineering work for the planned production phase. ON DEALS AND CORPORATE ISSUES, Advance Gold announced that a geophysical adviser was added to its exploration team (Tabasquena project, Zacatecas). Colibri Resources entered into a property option agreement with Tocvan Ventures Corp., on its Pilar property in Sonora. Consolidated Zinc completed the acquisition of a 100% interest of the Plomosas mine in Chihuahua. Vizsla entered into a definitive share purchase agreement to acquire an option on the Panuco-Copala mining camp in Sinaloa. Ridgestone entered in an agreement to acquire a 100% interest in 10 mining concessions adjacent to its Rebeico project in Sonora. ON SOCIAL RESPONSIBILITY, Fortuna Silver, through its subsidiary Minera Cuzcatlán, has invested MXP $177.2M in social programs in Oaxaca, Mexico.

 ON MEXICO ISSUES

  • Los Gatos mine was inaugurated in San José del Sitio, Chihuahua. The governor of Chihuahua State, Javier Corral, participated in the inauguration of the Los Gatos mines, located in San Jose del Sitio, Chihuahua. The mine was built with an investment of USD$ 366M among the Japanese company Dowa Mining and the American Sunshine Silver Mining company, for an estimated daily production of 2,500 tons of ore, which will be processed in the same plant with state-of-the-art technology, to obtain concentrates of Ag, Pb, and Zn. Governor Javier Corral celebrated the alliance of Japanese and American capital that occupied 1,800 people in construction and will give permanent employment to another 510 on its operation.

ON EXPLORATION

  • One World Lithium, announced the continuation of the phase 3 drilling program at its Salar del Diablo project in Baja California Norte. The phase three will consists of 3 holes adjacent to previously partly drilled holes 1, 9, and 11, and 1 hole located 50km to the south, for a total of 2,400m. Each hole has planned depths of 600m. Each hole will be drilled with a mud rotary rig that will set casing to 200 meters and then core drilled to the planned total depth of 600 meters. Objectives of the drilling program are “to determine the presence of aquifers that may contain concentrations of lithium in brines at depth; to collect representative, depth-specific groundwater samples for chemical analysis of major elements, including Li; to obtain drill core samples for analysis for drainable porosity that will assist in resource estimations; and to use borehole lithologic descriptions to identify hydrogeologic units and the stratigraphy of the basin; to help calibrate existing and future geophysical surveys; and to create a hydrogeologic model to develop a potential future Li resource”.
  • Ridgestone Mining Inc., released historical assays results from its Rebeico project in Sonora. These assays are from rock chip samples obtained by the Servicio Geológico Mexicano (SGM) at El Cobre, Tres Hermanos, Amargosa I and II, La Amargosita, and Campo Seco old workings. At El Cobre, two samples taken on the vein reported 0.8 g/t Au, 39 g/t Ag, 1.67% Cu, and 0.12% Mo over 1.18m, and 0.7 g/t Au, 50 g/t Ag, 0.51% Cu, and 0.18% Mo over 1.12m. In addition, two dump samples returned 0.5 g/t Au, 102 g/t Ag, 2.41% Cu, and 0.30% Mo, and 0.35 g/t Au, 38 g/t Ag, 2.07% Cu, and 1.22% Mo. At Tres Hermanos, highlights include 14.6 g/t Au and 23 g/t Ag over 1.30m; 8.13 g/t Au and 17 g/t Ag over 1.20m; 3.4 g/t Au, 23 g/t Ag, and 0.14% Cu over 1.90m; and 1.4 g/t Au, 137 g/t Ag, and 2.72% Cu over 1.0m. At La Amargosa I and II, 10 g/t Au and 3.48% Cu over 0.7m; 5.86 g/t Au and 1.85% Cu over 0.68m; and 2.66 g/t Au and 0.55% Cu over 0.71m. At La Amargosita, 17 g/t Au, 73 g/t Ag, and 0.45% Cu over 1.30m and one dump sample with 0.1 g/t Au, 777 g/t Ag, and 1.56% Cu. At Campo Seco, 0.1 g/t Au, 18 g/t Ag and 7.49% Cu over 0.55m.
  • Kootenay Silver Inc., reported drilling results from three holes drilled on the F Vein and five holes drilled on the I Vein at its Columba project in Chihuahua. Significant drill intersections were encountered in hole CDH-19-011 with 133 g/t Ag, 0.04% Pb, and 0.15% Zn over 11.0m, including 245 g/t Ag, 0.13 g/t Au, 0.1% Pb, and 0.3% Zn over 5.0m, and including 648 g/t Ag, 0.63 g/t Au, 0.2% Pb, and 0.6% Zn over 1.0m, on the F Vein, and 228 g/t Ag, 0.1% Pb, and 0.6% Zn over 1.2m and 102 g/t Ag, and 0.1% Zn over 1.68m on the foot wall vein; in hole CDH-19-012 with 184 g/t Ag, 0.2 g/t Au, 0.1% Pb, and 0.4% Zn over 11.0m, including 476 g/t Ag, 0.66 g/t Au, 0.3% Pb, and 1% Zn over 3.15m, including 476 g/t Ag, 0.66 g/t Au, 0.3% Pb, and 1% Zn over 3.15m, and including 755 g/t Ag, 1.16 g/t Au, 0.5% Pb, and 1.7% Zn over 1.75m on the F Vein, and three intersections on the hanging wall of 113 g/t Ag, 0.1% Pb, and 0.1% Zn over 1.35m, 699 g/t Ag, 0.4% Pb, and 0.8% Zn over 2.1m, and 113 g/t Ag, 0.1% Pb, and 0.1% Zn over 0.6m; in hole CDH-19-013 with 273 g/t Ag, 0.1% Pb, and 0.2% Zn over 4.15m on I Vein, including 697 g/t Ag, 0.15% Pb, and 0.3% Zn over 0.65m, and 328 g/t Ag, 0.1% Pb, and 0.2% Zn over 2.65m; in hole  CDH-19-014 with 261 g/t Ag, 0.3% Pb, and 0.6% Zn over 5.01m on the I Vein, and 894 g/t Ag, and 0.4% Zn over 0.42m on the hanging wall; in hole CDH-19-015 with 1,005 g/t Ag, 0.4% Pb, and 0.7% Zn over 0.3m on the I Vein; and in hole CDH-29-016 with 357 g/t Ag on the I Vein. “Drilling continues at the property with a total of 24 holes completed to date and the program being expanded from 3000 meters to approximately 4500 meters. It is anticipated that a total of 35 to 40 holes will be completed by early November with assay results continuing into December”.
  • Canasil Resources Inc., reported high grade results from 21 surface samples taken along the Candy vein, 31 samples collected from adjacent country rocks, and 12 dump samples at its Nora project in Durango. The Candy vein, an epithermal Au-Ag target, has not been previously drilled. There has been limited, historical mining of the Candy vein, and small mineralized waste dumps are present. Average of the 21 samples collected along the Candy vein is 1.69 g/t Au, 140 g/t Ag, 0.4% Cu, 1.6% Pb, and 0.6% Zn over 0.68m, with the highest Au value of 12.55 g/t Au, 12 g/t Ag, 1% Cu, 2.7% Pb, and 0.7% Zn over 0.40m, and the highest Ag value of 605 g/t Ag, 3.72 g/t Au, 0.97% Cu, 1.2% Pb, and 0.4% Zn over 1.0m. The average grade of the 12 dump samples is 1.40 g/t Au, 86 g/t Ag, 1.1% Cu, 3.4% Pb, and 1.6% Zn. These results will be interpreted to identify possible locations for subsequent drilling.
  • GoGold Resources Inc., released drilling results of four new holes drilled at Los Ricos Main Area and three new holes drilled at San Juan Area from its Los Ricos project in Jalisco. Significant drill intersections at Los Ricos Main Area were encountered in hole LRGG-19-038 with 0.72 g/t Au and 165 g/t Ag (2.92 g/t AuEq) over 21.2m, including 1.33 g/t Au and 302 g/t Ag (5.36 g/t AuEq); in hole LRGG-19-040 with 0.4 g/t Au and 115 g/t Ag (1.93 g/t AuEq) over 17.5m, including 0.89 g/t Au and 281 g/t Ag (4.64 g/t AuEq) over 4.5m; in hole LRRGG-19-041 with 1.14 g/t Au and 115 g/t Ag (2.68 g/t AuEq) over 23.3 m, including 4.6 g/t Au and 398 g/t Ag (9.91 g/t AuEq) over 5.5m; and in hole LRGG-19-042 with 0.47 g/t Au and 69 g/t Ag (1.40 g/t AuEq) over 29.2m, including 1.65 g/t Au and 224 g/t Ag (4.63 g/t AuEq) over 6.7m. At San Juan Area, the most significant drill intersections were encountered in hole LRGG-19-045 with 0.59 g/t Au and 34 g/t Ag (1.04 g/t AuEq) over 20m, including 2.92 g/t Au and 91 g/t Ag (4.123 g/t AuEq) over 3.5m; and in hole LRGG-19-046 with 0.36 g/t Au and 62 g/t Ag (1.19 g/t AuEq) over 36m, including 1.3 g/t Au and 220 g/t Ag (4.24 g/t AuEq) over 5.5m.
  • Mexican Gold Corp., announced an aggressive exploration plan for the remainder of 2019 at its Las Minas project in Veracruz, including a drill program of 3,000m. The company plans to drill test the Pueblo Nuevo, Cinco Señores TEM anomaly, Las Minillas, and El Dorado targets, and test the conceptual targets of Sub-Sill and the Mancuerna Dike Swarm for potential skarn mineralization.
  • Azucar Minerals Ltd., reported results from its ongoing drilling program at its El Cobre project in Veracruz at Norte, Villa Rica, Porvenir and Suegro targets. The most significant intervals were encountered at the Norte Target, where the hole EC-19-077 intersected 0.26 g/t Au and 0.11% Cu over 43.50m, including 0.53 g/t Au and 0.21% Cu and the hole EC-19-082 intersected 0.25 g/t Au and 0.12% Cu over 237.30m, including 0.63 g/t Au and 0.27% Cu over 44.45m, and another interval of 1.01 g/t Au and 0.33% Cu over 12.75m. At El Porvenir target, hole EC-19-078 intersected 82 g/t Au and 0.02% Cu over 12m, including 20.6 g/t Au and 0.01% Cu over 1.0m.

ON MINING

  • Mexus Gold US, provided an update on its Santa Elena mine in Sonora. The compnay informed that all systems are working properly but the Merrill Crow Au recovery plant currently in use is running at 30 gpm and producing 3Oz Au per day. Mexus is moving a new plant to Santa Elena which will have the capacity to run up to 500 gpm. This new equipment is expected to be operational in October, which allows the company to reach its long term production goal.
  • Azure Minerals Limited provided an update on the first phase small-scale mining program at its Oposura project in Sonora. Azure extracted and stockpiled an estimate of 6,100 tons of 13.4% Zn and 10.7% Pb from open pit, including 2,100 tonnes of 24% Zn and 18.3% Pb. Tonnages and grades exceed significantly the mineral resource estimate for this part of the deposit. Ore processing will start in the December quarter and will continue for 2-3 months. “Azure will produce separate Zn and Pb-Ag concentrates and expects to sell them on the spot market to locally-based metals traders or smelters, several of which have expressed strong interest in these products”.

ON FINANCING

  • Aztec Minerals Corp., applied to TSX to extend the term of an aggregate of 2,551,250 common share purchase warrants by one year from October 21, 2019 to October 21, 2020. “Each warrant entitles the holder to acquire one common share in the capital of the company at an exercise price of $0.25 per common share until the current expiry date of October 21, 2019. An aggregate of 23,750 warrants have been exercised to date and 550K warrants are held, directly or indirectly, by insiders of the company. The extension of the term of the warrants for an additional year is subject to the acceptance of TSX” (Cervantes project, Sonora).
  • Silver Viper Minerals Corp., closed a private placement for gross proceeds of $4M. Net proceeds will be used to continue exploration and development of its la Virginia project in Sonora, and for general corporate and working capital purposes.
  • Gold Resource Corporation, declared its monthly dividend of 1/6 of a cent per common share for September 2019, payable in October 23, 2019 to their shareholders (Arista mine, Oaxaca).

ON RESOURCES AND DEVELOPMENT

  • Prime Mining Corp., informed that the company completed a formal visit to its Los Reyes property in Sinaloa, to attend meetings with local stakeholders, to secure surface access and begin site preparation and to initiate exploration and engineering work for the planned production phase. The company has initiated a 5,000m trenching and surface sampling program on mineralized structures to provide valuable assay data to be used in conjunction with down drill data to update resource estimation. “The current trenching program will provide greater confidence in the conversion of these blocks to indicated resources for the upcoming resource estimate”.

ON DEALS AND CORPORATE ISSUES

  • Advance Gold Corp., announced that a geophysical adviser with over 40 years of international mining exploration experience was added to its exploration team (Tabasquena project, Zacatecas).
  • Colibri Resources Corporation, entered into a property option agreement with Tocvan Venture Corp., on its 100% owned Pilar project in Sonora. Tocvan has been granted a 60 days exclusivity period to complete a due diligence by paying Colibri $25K. If the due diligence is positive and Tocvan decide to continue the option agreement, it will have the option to earn 51% of the property over a 5 years period by issuing 2M common shares, paying CAD $100K to Colibri, 60 days after signing the final agreement, and performing CAD $250K of exploration expenditures at Pilar property during the first year. On year 2, Tocvan will pay CAD $ 50K to Colibri and will perform CAD $350K of exploration expenditures. On year 3, Tocvan will pay CAD $75K and issue 1M common shares to Colibri, and perform CAD $400K of exploration expenditures. On year 4, Tocvan will pay CAD $75K and issue 1M common shares to Colibri, and perform CAD $500K of exploration expenditures. On year 5, Tocvan will pay CAD $75K and issue 1M common shares to Colibri, and perform CAD $500k of exploration expenditures. Upon completion of these terms Tocvan will be granted a 6 month option to purchase the remaining 49% of Pilar in exchange for CAD $2M and a 2% NSR on the project, of which 1% could be sold by Colibri for a price of CAD $1M. Tocvan will operate the project during the option period.
  • Consolidated Zinc Limited, completed the acquisition of a 100% interest of the Plomosas mine in Chihuahua by acquiring the remaining 10% interest from Retec Guaru S.A. de C.V.
  • Vizsla Resources Corp., entered in a definitive share purchase agreement to acquire an option over the consolidated mineral rights, infrastructure and processing facilities comprising the large scale Panuco-Copala mining camp in Sinaloa. Vizsla has agreed to acquire all of the outstanding shares of Canam Alpine Ventures Ltd. Vizsla will acquire Canam for a total staged consideration of 18M common shares of Vizsla by issue 6M common shares on closing of the acquisition, 6.5M common shares upon definition of a resource greater than 200K Oz AuEq, and 5.5M common shares upon exercise of the option. Also, Vizsla will pay USD $700K on signing, USD $450K in the first anniversary of signing, USD $5,184,500 and work commitment of USD $3,423,000 in the second anniversary of signing, USD $6,846,000 in the third anniversary of signing, USD $8,557,500 in the fourth anniversary of signing, USD $9,269,000 in the fifth anniversary of signing, and USD $11,907,425 in the sixth anniversary of signing.
  • Ridgestone Mining Inc., entered in an agreement to purchase a 100% interest in 10 mining concessions adjacent to its Rebeico project in Sonora. These 10 mining concessions cover an area of 3,292 hectares and contain numerous artisanal old workings and mineralized outcrops. Terms of the acquisition include a cash payment of USD $83K and the issuance of 5M common shares of Ridgestone to the vendor.

ON SOCIAL RESPONSIBILITY

  • Fortuna Silver Mines Inc., through its subsidiary Minera Cuzcatlán has invested MXP $172.2M in San Jose del Progreso, Oaxaca and surrounding communities, since it started operations in 2011. One of the most outstanding projects to date is the breeding and fattening of lambs in the community of El Cuajilote. This has been successfully promoted by Compañía Minera Cuzcatlán since 2016. The company contributes with inputs and technical advice, while producers provide labor. Additionally, the suppliers of inputs are 100% local, also benefiting companies in the region. Currently 70% of 400 square meters of productive infrastructure have been installed. The amount of sheep bellies, of a target of 90, has been increased by 45% by keeping them in the feeding and reproduction program. Likewise, the percentage of births has increased from 80% to 125%. In this way, Compañía Minera Cuzcatlán makes a difference for families benefiting from this and other programs, since they receive financial support by providing inputs for food by the company and training according to the productive or reproductive season.

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

On the picture above, quartz vein with stibnite and displaying lattice  bladed texture in a prospect in San Luis Potosi, Mexico.  Photo by Miguel A Heredia.

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

Boiling texture in a quartz chalcedonic vein

By Miguel A Heredia

During the twenty seven week of the year (July 15th to July 7th, 2019), at least 27 press releases were announced by companies working in Mexico, with ten communicating production results, seven disclosing deals and corporate issues, six announcing financial rounds, two reporting on resources and development of their projects,  and two informing on exploration results.  ON MEXICO ISSUES, no relevant news.  ON EXPLORATION, In Chihuahua, Silver Spruce secured drill pads to commence phase 1 drill program at its Pino de Plata project. In Oaxaca, Megastar identified multiple targets at its Yautepec property. ON MINING, Avino, Consolidated Zinc, First Majestic, Fortuna Silver, Fresnillo, Gold Resource, Hecla, McEwen, Premier, and Sierra Metals reported Q2, 2019 production results from their Mexican operations. ON FINANCING, Americas Silver announced a non-brokered private placement for gross proceeds of approximately US$10M (Cosala, Sinaloa). It also announced the termination of the agreement with Premier Gold on the San Felipe project in Sonora for total sales proceeds of US$10.8M. Discovery Metals announced its intentions to complete a non-brokered private placement to rise gross proceeds of $9M (Puerto Rico project, Coahuila). Golden Minerals entered in definitive agreements to rise gross proceeds of $2.25M (Santa Maria project, Chihuahua). Mexican Gold closed a non-brokered private placement for gross proceeds of $4M (Las Minas project, Veracruz). Orla Mining rised $3.6M through early warrant exercise incentive program (Camino Rojo project, Zacatecas). Silver Spruce received a final payment of $150K for the sale of its Kay Mine project to Croesus. Silver Spruce received and accepted an unsolicited cash investment offer of USD $250K (Pino de Plata project, Chihuahua). ON RESOURCES AND DEVELOPMENT, Endeavour acquired two mineral properties adjacent to its Guanacevi mine in Durango. SilverCrest received the operating permit from SEMARNAT for the development of its Las Chispas project in Sonora. ON DEALS AND CORPORATE ISSUES, Silver Spruce announced the acquisition of the Cocula advanced Au project in Jalisco. Excellon, Great Panther, Mexican Gold, and Prize announced management changes.  Mexican Gold, Prize, and Minera Alamos granted stock options to Directors, Officers, Employees, and Consultants.

 ON MEXICO ISSUES

  • No relevant news.

ON EXPLORATION

  • Silver Spruce Resources Inc., secured drill pads to commence phase 1 drill program at its Pino de Plata project in Chihuahua. The surface landowners have granted surface access and signed the drill permit application.
  • Megastar Development Corp., identified multiple targets at its Yautepec property in Oaxaca. The property lies within the known Oaxaca Au-Ag epithermal trend that hosts the San Jose Mine owns by Fortuna Silver, and the Arista-Switchback mine owned by Gold Resource. Results from the first 146 rock-chip samples were received. Significant results are: 6 samples with > 10 ppm Ag (maximum value of 62 ppm Ag); 9 samples with > 100 ppb Au (maximum value of 0.86 ppm Au);   5 samples with > 100 ppm Cu (maximum value of 639 ppm Cu); 6 samples with > 100 ppm Pb (maximum value of 863 ppm Pb); 10 samples with > 100 ppm Zn (maximum value of 215 ppm Zn; 8 samples with > 100 ppm Mo (maximum value of 648 ppm Mo); 12 samples with > 1,000 ppm As (maximum value of 6,290 ppm As); 9 samples with > 1,000 ppm Ba (maximum value of 4,590 ppm Ba); and 12 samples with > 1 ppm Hg (maximum value of 7.8 ppm Hg). These anomalous values are from quartz veins, silicified breccias and siliceous sinter deposits in multiple areas along a north-northwest striking 8.4km trend of prospective rocks that trace a volcanic caldera margin. An additional 175 rock-chip samples have been submitted to the lab and results will be announced in subsequent new releases.

ON MINING

  • Avino Silver & Gold Mines Ltd., reported Q2, 2019 consolidated production results from its Avino mine operation in Durango. It processed 200,873 tonnes of 57 g/t Ag, 0.41 g/t Au, and 0.38%Cu to produce 246K Oz Ag, 1,609 Oz Au, and 1.14M Lb Cu. Metallurgical recoveries were 69%, 61% and 63% for Ag, Au, and Cu respectively.
  • Consolidated Zinc Limited, reported June 2019 production results from its Plomosas mine in Chihuahua. It mined 5,099 tonnes of 17.5% Zn, 11.2% Pb, and 62 g/t Ag for a total of 2M Lb Zn, 1.3M Lb Pb, and 10.2K Oz Ag contained. From this tonnage, only 2,409 tonnes were processed but additional stockpiles of 6,599 tonnes remain in mine site awaiting be delivered to the Aldama plant.
  • First Majestic Silver Corp., announced Q2, 2019 production results from their Mexican operations. The below table shows the mine by mine production results:

 

  • Fortuna Silver Mines Inc., released Q2, 2019 production results from its San Jose mine in Oaxaca. Fortuna processed 271,016 tonnes of 273 g/t Ag and 1.68 g/t Au to produce 2.2M Oz Ag and 13.2K Oz Au, with metallurgical recoveries of 90.76% and 90.23% respectively.
  • Fresnillo plc., reported Q2, 2019 consolidated production results from their Mexican operations. The company produced 14.42M Oz Ag (including Silverstream), 221.3K Oz Au, 29.2M Lb Pb, and 46.3M Lb Zn. The production results by mine are as follow: At the Fresnillo mine in Zacatecas, 618,852 tonnes with grades of 192 g/t Ag, 0.9 g/t Au, 1% Pb, and 1.6% Zn were processed to produce 3.5M Oz Ag, 13.5K Oz Au, 11.7M Lb Pb, and 15M Lb Zn. At the Saucito mine in Zacatecas, 662,023 tonnes were processed with grades of 242 g/t Ag, 1.15 g/t Au, 0.8% Pb, and 1.3% Zn to produce 4.5M Oz Ag, 18K Oz Au, 10.2M Lb Pb, and 13.31M Lb Zn. At the Piritas Plant in Zacatecas, 39,159 tonnes were processed with grades of 352 g/t Ag and 2.57g/t Au to produce 333K Oz Ag and 1,215 Oz Au. At the La Cienega mine in Durango, the company processed 329,117 tonnes with grades of 1.57 g/t Au, 162 g/t Ag, 0.6% Pb, and 1.1% Zn to produce 15K Oz Au, 1.5M Oz Ag, 3M Lb Pb, and 4.8M Lb Zn. At the San Julian mine in Chihuahua-Durango border, Fresnillo processed 338,797 tonnes of 1.71 g/t Au and 124 g/t Ag from San Julian Veins to produce 17.7K Oz Au and 1.2M Oz Ag, while 562,534 tonnes were processed from the San Julian Disseminated Ore Body with grades of 0.08 g/t Au, 149 g/t Ag, 0.4% Pb, and 1.4% Zn, to produce 636 Oz Au, 2.3M Oz Ag, 4.2M Lb Pb, and 13.3M Lb Zn. Total production at San Julian was 18.3K Oz Au and 3.6M Oz Ag. At its Herradura mine in Sonora, the company processed 5,466,791 tonnes of 0.84 g/t Au and 2.5 g/t Ag to produce 120K Oz Au and 280K Oz Ag. At the Noche Buena mine in Sonora, Fresnillo processed 3,663,549 tonnes of 0.56 g/t Au and 0.22 g/t Ag,  to produce 35.3K Oz Au and 17K Oz Ag.
  • Gold Resource Corporation, released production results from its Oaxaca Mining Unit for the period Q2, 2019. It produced 7,881 Oz Au, 466.5K Oz Ag, 1.1M Lb Cu, 5.2M Lb Pb, and 13.6M Lb Zn.
  • Hecla Mining Company, reported Q2, 2019 production results from its San Sebastian mine in Durango. The company produced 0.5M Oz Ag and 3,547 Oz Au.
  • McEwen Mining Inc., announced that 5,340 Oz Au were produced at its El Gallo mine in Sinaloa during the period Q2, 2019.
  • Premier Gold Mines Limited, reported that a total of 15.5K Oz Au and 56.5K Oz Ag were produced from its Mercedes mine in Sonora during Q2, 2019.
  • Sierra Metals Inc., released Q2, 2019 production results from their Mexican operations. At Its Bolivar mine in Chihuahua, Sierra Metals processed 326,208 tonnes of 0.86% Cu, 18 g/t Ag, and 0.24 g/t Au to produce 5.2M Lb Cu, 152K Oz Ag, and 1,586 Oz Au. At its Cusi mine in Chihuahua, the company processed 82,117 tonnes of 1|45 g/t Ag, 0.15 g/t Au, and 0.1% Pb to produce 283K Oz Ag, 146 Oz Au, and 154K Lb Pb.

ON FINANCING

  • Americas Silver Corporation, announced that Eric Sprott has agreed to purchase common shares of the company for a total investment of approximately US$10M in a non-brokered private placement (Cosala, Sinaloa). It also announced the termination of the agreement with Premier Gold on the San Felipe project in Sonora for total sales proceeds of US$10.8M.
  • Discovery Metals Corp., announced its intentions to complete a non brokered private placement to raise gross proceeds of $9M, of which Eric Sprott has agreed to purchase 19.9% of the company by investing $7.7M. Discovery plans to acquire all the issued and outstanding common shares of Levon Resources Ltd., as announced in a news release dated May 30, 2019. Gross proceeds will be used to continue exploration at Cordero, Chihuahua, following the acquisition of Levon, and at the Coahuila projects (Puerto Rico, Minerva, and Monclova).
  • Golden Minerals Company, entered in definitive agreements with institutional investors for an offering of shares of common stock with gross proceeds of $2.25M (Santa Maria project, Chihuahua).
  • Mexican Gold Corp., closed a non-brokered private placement for gross proceeds of $4M. Net proceeds will be used for exploration and advancement of its Las Minas project in Veracruz.
  • Orla Mining Ltd., rised $3.6M through an early warrant exercise incentive program rised $3.6M. Net proceeds will be used to continue regional exploration and allow greater flexibility prior to construction of its Camino Rojo Oxide project in Zacatecas.
  • Silver Spruce Resources Inc., received a final payment of $150K for Croesus Gold Corp., for the sale of its Kay Mine project. Some of the net proceeds will be used to fund the due diligence program at its advanced Cocula gold project in Jalisco. The company also received and accepted an unsolicited cash investment offer of USD $250K to purchase 5% interest of Silver Spruce Resources de Mexico SA de CV, the Mexican subsidiary of Silver Spruce, and 5% interest in the mining titles for each of the four mining concession that comprise its Pino de Plata project in Chihuahua. The offer was done before the commencement of the phase 1 drill program.

ON RESOURCES AND DEVELOPMENT

  •  Endeavour Silver Corp., acquired a 10 years rights to explore and exploit two mineral properties adjacent to its Guanacevi mine in Durango from a subsidiary of Minera Frisco SAB de CV. The El Porvenir property of 15 Ha covers the up dip extension of the El Porvenir Norte orebody, and The El Curso property of 40 Ha that covers any possible northwest extension of the El Porvenir Cuatro orebody, which was the highest grade mine in the district. Endeavour agreed to meet certain minimum production targets from the properties and pay Frisco a fixed per tonne production payment plus a floating NSR based on the spot Ag price.
  • SilverCrest Metals Inc., received from SEMARNAT the approval of the MIA or operating permit for the development of its Las Chispas project in Sonora. The receipt of the MIA provides the company to construct a 3,000 tonnes per day underground mine and a conventional processing facility with subsequent dry stack tailings and underground backfill for Las Chispas. The MIA remains in good standing for 14 years until July 17, 2033.

 ON DEALS AND CORPORATE ISSUES

  • Silver Spruce Resources Inc., acquired 100% interest in the Cocula advanced Au project in Jalisco from Prospeccion y Desarrollo Minero del Norte SA de CV (ProDeMin), which in turn, has an option agreement from the owners to acquire 100% interest in the Cocula project. Terms of the acquisition include a USD$160K due within two years of assumption of the ProDeMin contract; USD$330K due within year three; and USD$2.5M due within year four. ProDeMin has to negotiate with the owners to delay payments and to accept cash and company shares as payment. The owners also have retained a 2% NSR which is capped at USD$1.5M and of which 1% can be purchased for USD$500K. Minimum work expenditure include USD$250K in the first two years and USD$500K within the following two years. Silver Spruce has also agreed to reimburse ProDeMin USD$125K over two years for its previous option payments made to the owners, upon completion of the Company’s financing requirements, and to issue 3M of the Company’s common shares to ProDeMin over four years.
  • Excellon Resources Inc., announced the appointment of its CFO and VP Corporate Development (La Platosa, Durango).
  • Great Panther Mining Limited, announced the appointment of the Chair of the Board of Directors of the company (Topia mine, Durango).
  • Mexican Gold Corp., announced the resignation of its COO and one Director, and the appointment of a new member to its Board of Directors. The company also granted stock options to Directors, Officers, and Consultants of the company (Las Minas, Veracruz).
  • Prize Mining Corporation appointed as new Director to the Board of the company. It also granted stock options to Directors, Officers, Employees, and Consultants of the company (Manto Negro project, Coahuila).
  • Minera Alamos Inc., granted stock options to Managements, Directors, Employees, and Consultants of the company (Santana project, Sonora).

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

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

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

By Jorge Cirett

During the 18th week of the year (April 29th to May 5th, 2019), at least 35 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, Newmont Goldcorp Corp. informed on the intention to temporarily suspend operations at the Peñasquito mine in Zacatecas, due to an illegal blockade lasting for more than a month now. More than 300 mine employees protested outside the Zacatecas Congress, accusing José Narro, senator by Morena (the president’s party) of instigating the blockade. Drill core from La Xora project in Nayarit was added to The Mexican Core Shack. ON EXPLORATION, Nine companies presented advances in the exploration of their properties: In Baja, One World Lithium has received the permits to drill its Salar Del Diablo property. In Sonora, Sonoro Metals disclosed assays for the first 15 RC holes of the second drilling campaign; Ridgestone updated the work done to date at Rebeico; Minaurum staked a large chunk of ground at its Alamos project. In Chihuahua, Silver Spruce released surface sample results from its Pino de Plata project; Radius Gold released exciting results from the first hole of the second drilling campaign at Amalia; Kootenay Silver has initiated drill road construction for its incoming campaign at Columba. In Jalisco, GoGold released results from its drilling campaign at Los Ricos. In Zacatecas, Alien Gold updated on the exploration effort at its Donovan 2 property. ON MINING, nine companies presented its first quarter 2019 results, while one company presented its 2018 results. ON FINANCING, First Mining, and Prize Mining are to raise $6 M and $1.5 M respectively. Leagold Mining secured a 200 M term loan and a 200 M revolving credit. ON RESOURCES AND DEVELOPMENT, no relevant news.  ON DEALS AND CORPORATE ISSUES, Alio Gold received notice of a civil claim from a former Rye Patch shareholder.  

ON MEXICO ISSUES

  • Newmont Goldcorp Corp. informed on the intention to temporarily suspend operations at the Peñasquito mine in Zacatecas (one of the largest in Mexico, produced 272 K Oz Au in 2018), due to an illegal blockade by a trucking contractor and some members of the Cedros community that began on March 27, 2019. The company announced on April 9 that the trucking contracts will now be signed with independent truckers, to their economic benefit and to avoid the repeated extortion blockades by the current trucking contractor. Newmont Goldcorp denounced that the blockader’s public claims that focus in water quality and employment, turn in a direct petition for large amounts of money when done privately. The company asks for help from the Mexican and Zacatecan authorities to resolve the illegal blockade that affects the income of more than 20 thousand persons, directly or indirectly. On a different event, about 300 employees of Minera Peñasquito, protested outside the Zacatecas Congress against the illegal blockade that keeps paralyzed the Peñasquito mine. The protesters accused Jose Narro, senator by the president party, Morena, and his acolyte Felipe Pinedo of blackmailing the company with false water contamination statements.  
  • Core from La Xora project, in Nayarit, was added to the Mexican Core Shack (https://gambusinoprospector.com/mexican-core-shack/), under the epithermal low sulphidation section.

ON EXPLORATION

  • Sonoro Metals Corp.  reported assay results from the first 15 reverse circulation holes of the second phase drilling program at its Cerro Caliche property in Sonora. All holes encountered gold mineralization, which extend mineralization 1.25 Km NW from the Central Zone, where the first drill campaign defined a series of NW striking structures, outlining three shallow bulk tonnage oxidized mineralized zones in metasedimentary and volcanic rocks. Previously reported results come from the Central Zone prospects Japoneses, Abejas, El Colorado and Guadalupe, whereas the new drill holes tested El Rincon, Gloria, El Boludito, and Veta de Oro zones. Highlighted results comprise 10.67 m @ 2.73 gpt AuEq; 3.05 m @ 5.48 gpt AuEq; 10.67 m @ 0.74 gpt AuEq; 6.1 m @ 0.80 gpt AuEq; 15.24 m @ 1.05 gpt AuEq.
  • Alien Metals Ltd. updated on its exploration work at its Donovan 2 project in Zacatecas. Work to date supports indications of volcanogenic massive sulphide (VMS) mineralisation on multiple target areas open along strike, with surface assays of up to 3.3% Cu, 0.25% Zn. Currently there are magnetic, chargeabilty and resistivity anomalies, and a gravity survey underway is to refine the targets on this project, which is 24 kilometers from Teck’s San Nicolas deposit.
  • Ridgestone Mining Inc. announced that exploration work to date on its Rebeico property in Sonora defined the 1.2 km long Alaska vein and intensely altered breccia zones SW of the vein, carrying Cu, Au and Ag values, as well as bismuth anomalies. An 18 line-kilometer induced polarization (IP) survey identified a chargeability anomaly below the breccia zone. A 12 hole 1,430 m diamond drill program tested 500 m of the Alaska vein. Eight of the twelve holes intersected significant grades, including: 0.80 m @ 1.41% Cu, 2.95 gpt Au; 2.0 m @ 2.78% Cu, 8.69 gpt Au; 1.40 m @ 3.25 gpt Au; 1.50 m @ 1.39 gpt Au; 1.0 m @ 0.30% Cu, 5.61 gpt Au; 3.25 m @ 2.41% Cu, 8.31 gpt Au; 1.50 m @ 1.22% Cu, 36.10 gpt Au.  
  • One World Lithium Inc. has received the permit required to start its 12 hole, 4,250 m drilling program at its Salar del Diablo property in Baja California. The company intends to test three geophysical anomalies, a geochemical anomaly, and structures that may trap and concentrate brines. The Salar del Diablo Property has never been drilled in the past.
  • Silver Spruce Resources Inc. released surface sample results from its Pino de Plata property in Chihuahua. The samples returned 19 gpt Ag, 16 gpt Ag, 2 gpt Ag, 1,1,30 gpt Ag, 123 gpt Ag, 95 gpt Ag and 255 gpt Ag; up to 0.19 gpt Au, up to 802 ppm Cu, up to 3.7% Pb on samples 0.2 to 1.0 m in length. The two targets in the area comprise El Terrero and the Gossan area. At El Terrero, a 32 hectares zone “of multiple flat-lying brecciated zones hosted by a zone of strong argillic alteration” is the target, while at the Gossan area a series of hornfels and skarns developed near an intrusive contact may host massive sulphide replacement bodies associated to structures.
  • Radius Gold Inc. reported the first results from the second diamond drill campaign at its Amalia project in Chihuahua. The program is operated by Radius and funded by Pan American Silver Corp. under a JV agreement by Which Pan American can earn an initial 65% by making cash payments totaling US$1.5 M (of which US$100 K have been paid) and spending US$2 M on exploration over four years. The first hole in this campaign intersected 44 m @ 12.38 gpt Au, 309 gpt Ag, including 11 m @ 39.9 gpt Au, 323 gpt Ag. The estimated true width of the zone is 34 m, consisting of “an epithermal breccia and quartz sulphide stockwork vein zone ” located on or near to the contact between overlying Tertiary rhyolitic ignimbrite and the footwall andesite volcaniclastics of the Late Cretaceous Tarahumara Formation. Diorite dykes appear to be emplaced along the fault zone and are associated with mineralization”.
  • Minaurum Gold Inc. staked an additional 20,872 hectares on its Alamos project in Sonora. Additionally, mapping has revealed four new vein zones: Rosario, La Dura Oeste, La Dura and La Tijera. These four zones bring the total of veins zones of the district to twenty. The Rosario vein has been traced for 500 m, with samples assaying 304 gpt Ag and 227 gpt Ag over 1 m and 675 gpt Ag, 1.0% Cu, 0.9% Pb over 2 m. The La Dura Oeste vein has been traced for 550 m, returning assays of 30 gpt Ag, 3.4% Cu and 37 gpt Ag, 4.3% Pb. La Dura vein  returned 123 gpt Ag, 2.% Cu over 0.5 m. La Tijera vein was traced for 750 m, with three samples returning 23- 36 gpt Ag, 0.41 – 0.77% Cu, up to 0.1% Pb, up to 0.15% Zn over 0.1 to 0.3 m.
  • Kootenay Silver Inc. has initiated the road construction for the drilling of its Columba property in Chihuahua. The property covers a low sulphidation epithermal system with numerous veins ranging on 200 m to up to 2 km of strike length. Over 1,000 m of underground workings are present, including four shafts and six drifts, with historic records indicating grades between 600 and 900 gpt Ag.
  • GoGold Resources Inc. released results from its recently acquired Los Ricos property in Jalisco. Highlighted diamond drill results comprise 22.4 m @ 4.13 gpt Au, 182 gpt Ag (or 6.55 gpt AuEq), including 3.0 m @ 25.08 gpt Au, 534 gpt Ag (or 32.2 gpt AuEq) and 11.7 m @ 0.68 gpt Au, 89 gpt Ag (or 1.87 gpt Au), including 6.1 m @ 0.58 gpt Au, 142 gpt Ag (or 2.47 gpt AuEq). The campaign is focused on defining the mineralized halo around the ore shoots defined by 65 historical reverse circulation holes. Over six thousand assays from channel samples are being digitized from underground working, to aid with deeper drill planning.

ON MINING

  • Consolidated Zinc Ltd. released its March 2019 quarterly activities report. During the period its Plomosas mine in Chihuahua produced 11,267 tonnes @ 10.7% Zn, 2.5% Pb, while 12,992 tonnes were processed @ 10.9% Zn, 2.0% Pb, 18 gpt Ag, recovering 87.5% Zn, 84.9% Pb at cash cost $1.11 per Lb Zn. The company also informed on a surface access legal proceedings that seek to nullify the current surface access contract.  
  •  Americas Silver Corp. announced production and operating cost results for the first quarter of 2019, including figures of its Mexican operations. At its Cosalá operations in Sinaloa, 152.6 K tonnes were processed @ 57 gpt Ag, to produce 173.2 K Oz Ag, 11.3 M Lb Zn, 4.6 M Lb Pb (or 1.32 M Oz AgEq), at cash cost $30.48 per Oz Ag and AISC $25.85 per Oz Ag.
  • Grupo Mexico S.A.B. de C.V. presented results for the first quarter of 2019. During the period the company produced 261,328 tonnes Cu, 5,145 tonnes Mo, 18,550 tonnes Zn, 3,13 M Oz Ag, 12,399 Oz Au and 0.58 M tonnes of sulphuric acid from its operations in Mexico, USA and Peru, at cash cost $1.13 per Lb Cu. A US$413 M budget was approved for the construction of a Zn concentrator at Cananea, Sonora, a project that is to generate 3,760 jobs. At San Martin, in Zacatecas, $87 M have been budgeted to re-open the mine, whereas at Pilares, in Sonora, an open pit mine is to produce ore @ 0.78% Cu to be treated at the La Caridad plant, six km away.
  • McEwen Mining Inc. reported its first quarter 2019 results, including figures from its Mexican operations. At El Gallo, in Sinaloa, 5,432 Oz AuEq were produced at cash cost $967 per Oz AuEq and an AISC $989 per Oz AuEq. “Mining ceased at El Gallo by the end of May 2018, and the mine continues to recover gold from residual leaching of the heap leach. During the quarter, the process plant underwent a small expansion to improve efficiency and enable faster gold recover”.
  • Premiere Gold Mine Ltd. reported its first quarter production for 2019. During the quarter the Mercedes mine in Sonora produced 17,614 Oz Au and 57,681 Oz Ag.
  • Argonaut Gold Inc. announced its operating and financial results for the first quarter 2019. At El Castillo, in Durango, working at a rate of 68 K tonnes per day (tpd), 3.8 M tonnes of waste were moved, 2.29 M tonnes of ore were mined and 2.33 M tonnes @ 0.39 gpt Au were placed on the leach pads, producing 28,210 Oz Au, 54,030 Oz Ag at cash cost $918 per Oz Au. At San Agustin, part of the El Castillo Complex, working at a rate of 33 K tonnes per day, 1.31 M tonnes of waste and 1.66 M tonnes of ore were moved, placing 1.69 M tonnes @ 0.47 gpt Au in the leach pads, producing 14,084 Oz Au, 54,030 Oz Ag at cash cost $867 per Oz Au. At La Colorada in Sonora, working at a rate of 76 K tpd, 5.97 M tonnes of waste and 872 K tonnes of ore were moved and 882 K tonnes were placed on the leach pads @ 0.44 gpt Au, producing 15,372 Oz Au, 54,773 Oz Ag at cash cost $952 per Oz Au. “The Company plans to invest between $50 million and $60 million in capital programs during 2019, of which approximately 30% was spent during the first quarter of 2019”
  • Coeur Mining Inc. reported first quarter 2019 financial results, including figures from its Mexico operations. At Palmarejo, in Chihuahua, 379 K tonnes were milled @ 2.18 gpt Au, 144 gpt Ag, recovering 86.4% Au, 72.8% Ag, to produce 23,205 Oz Au, 1.28 M Oz Ag. Costs applicable to sales (CAS) were $713 per Oz Au and $9.66 per Oz Ag.
  • Alamos Gold Inc. released its financial results for the first quarter 2019, including figures from its operations in Mexico. At Mulatos, in Sonora, 1.83 M tonnes of ore were mined, 1.98 M tonnes of waste moved, to place 1.87 M tonnes of ore on the leach pads @ 0.98 gpt Au, producing 38,900 Oz Au at cash cost $743 and mine site AISC of $809. At El Chanate, in Sonora, 5,800 Oz Au were produced at cash cost $1,193 per Oz Au and mine site AISC of $1,193 per Oz Au. Construction of the haulage road has commenced on the Cerro Pelon mine, near the Mulatos mine, with a 2019 budget of $25 M. Pre-stripping is expected to commence in the third quarter.
  • Excellon Resources Inc. announced first quarter 2019 results from the Platosa mine in Durango. During the period 20 K tonnes were mined, with 16.8 K tonnes of ore @ 534 gpt Ag, 5.01% Pb, 8.00% Zn and 1.45 K tonnes of historical stockpile processed @ 123 gpt Ag, 1.22% Pb, 1.44% Zn, recovering 89.7% Ag, 74.6% Pb, 78.1% Zn to produce 260.4 K Oz Ag, 1.38 M Lb Pb, 2.21 M Lb Zn.
  • Golden Minerals Co. announced financial results for Q1 2019. The company continues to advance the Yoquivo Au-Ag project in Chihuahua. The company has cash and cash equivalents of $2.2 M, with no debt.
  • Santacruz Silver Mining Ltd. reports on its financial and operating results for the 2018 fiscal year. During the year the company milled 211.4 K tonnes, recovering 815.3 K Oz AgEq at cash cost $36.8 per AgEq Oz and an AISC of $37.2 per AgEq Oz. At Veta Grande, Zacatecas, silver production was 514.4 K Oz. At Rosario, in San Luis Potosi, silver production was 300.9 K Oz Ag.  

ON FINANCING

  • First Mining Gold Corp. intends to complete a non-brokered private placement for aggregate proceeds of up to $6 M. (San Ricardo, Sonora; Lachatao, Oaxaca).
  • Prize Mining Corp. intends to raise up to $1.5 M by means of non-brokered private placement (Manto Negro, Coahuila).
  • Leagold Mining Corp. received a binding underwriting commitment from a syndicate of lenders for a $200 M term loan and a $200 M revolving credit facility. “These loans will be used to repay current debt and finance the Company’s growth” (Los Filos, Guerrero).

ON RESOURCES AND DEVELOPMENT

  • No Relevant News.  

ON DEALS AND CORPORATE ISSUES

  • Alio Gold Inc. received a notice of civil claim from a former shareholder of Rye Patch Gold Corp. whose shares were acquired by the company on May 2018.  (San Francisco, Sonora).
  • Silver Bull Resources Inc. informed that South 32 is to maintain its option on the Sierra Mojada project by funding an additional US$3 M in exploration. “This will result in aggregate funding of US$6 million at the completion of the second year of the joint venture option”. To maintain the option, South32 must contribute minimum exploration funding of US$10 M during a four year option period with minimum aggregate exploration funding of US$3 M, US$6 M and US$8 M to be made by the end of years 1, 2 and 3 of the option period respectively.

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

On the image below, quartz-chalcopyrite veinlet hosted by an intrusive rock in core from a project in Michoacan. Picture by Jorge Cirett.

Oroco Affiliate Acquires Share Option

oroco affiliate acquires share option

VANCOUVER, April 10, 2019 /CNW/ – Oroco Resource Corp. (TSX-V: OCO) (“Oroco” or “the Company”) is pleased to announce that its affiliate, Altamura Copper Corp. (“Altamura”), has acquired an option to purchase 40,000,000 shares (the “Aztec Shares”) of Aztec Copper Corp.(“Aztec”) held by Fierce Investments Ltd. (“Fierce”). At the time of their issuance, the Aztec Shares represented in excess of 90 percent ownership of Aztec.

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


Quartz-sulfide sheeted veinlets with silicified halos in argillitized fragmental tuff on a project in Jalisco

By Jorge Cirett

During the 2nd week of the year (January 7th to January 13th, 2019), at least 26 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, The government stressed the need to create a new legal framework to standardize the safety, health and protect workers and the environment. ON EXPLORATION, In Sonora, San Marco confirmed the presence of a porphyry copper system at El Espiritu; Silver Viper released unpublished historical drill results from its La Virginia property. In Chihuahua, Sable Resources summarized its 2018 program on Margarita, and 2019 drill plans for Margarita and Vinata projects; Kootenay reported new surface sample results from the Columba project. ON MINING, Consolidated Zinc, Great Panther, Endeavour Silver, New Gold, Torex Gold and Capstone presented Q4 2018 production results. Sierra Metals is increasing production at Bolivar, Chihuahua. US Antimony is completing its plant to process Los Juarez ore. ON FINANCING, Silver One, Gainey Capital and SilverCrest completed non-brokered private placements for gross proceeds of C$624 K, $750 K and C$292 K. respectively. ON RESOURCES AND DEVELOPMENT, Oceanus informed on El Tigre, Sonora,  2018 exploration, and plans for 2019. SilverCrest released further high-grade in-fill drilling results from its Las Chispas property in Sonora. Excellon released high grade underground results from the 623 Manto at its Platosa mine in Durango. ON DEALS AND CORPORATE ISSUES, Great Panther and Beadell Resources completed the friendly acquisition of the latter by Great Panther. Prize Mining trading was halted at the TSX Venture Exchange. Riverside outlined its 2019 business plan, which includes advancing properties, potential joint venture partnerships and strategic alliances. Americas Silver and Pershing Gold announced their shareholders approved its merger.

ON MEXICO ISSUES

  • The president of the Commission on Mining and Regional Development, Geovanna del Carmen Bañuelos de la Torre, said that it is necessary to create a new legal framework to standardize the safety, health and protect workers and the environment. She also recognized that the actual distribution of the Mining Fund lacks rigor on its application, and that a reform proposal has been formulated.

ON EXPLORATION

  • Sable Resources Ltd. summarized its 2018 exploration program, including information from its projects in Mexico. During 2018’s second quarter Sable completed 2,420 m in 12 drill holes at the Margarita project in Chihuahua, testing epithermal veins in Eocene-Oligocene volcanic rocks. “The project is defined by 5 veins; Margarita, El Caido, Juliana, Faviana, and Marie. All exploration drilling by Sable up to this point was executed along 750 m strike of the Margarita Vein”. Results for the first round of drilling include close to surface high-grade intersections like: 252 g/t AgEq over 11.3 m;  462 g/t AgEq over 4.25 m and larger low-grade halos as: 36 g/t AgEq over 21.35 m and 50 g/t AgEq over 44 m. “A second round of drilling planned to start in mid-January includes 1360m in 9 holes to extend the drilling for 1.5km along the known surface trace of the Margarita vein and to close the drilling grid to approximately 250m space. In addition, 1750m will be drilled in 13 exploration holes that will test the other veins”. Sable received title for 12 mining concessions covering 38,396 ha in Chihuahua, all covering stream sediment and rock sample anomalous areas, including the drill ready Vinata vein system located NE of the Margarita project. The company also holds projects in Canada, Peru and Argentina.
  • San Marco Resources Inc. confirmed the existence of a porphyry Cu-Mo-Au system at its Espiritu project in Sonora. The work done confirmed a multi-stage system with an alteration foot-print at least 2.5 Km x 1.2 Km and that the best Cu mineralization is surface and drill core samples is in rocks with potassic alteration and a quartz-chalcopyrite-pyrite stockwork. There are indications that copper mineralization might be preserved at depth within the shallower part of the porphyry system(s). Future work is expected to include magnetic and ZTEM surveys in advance of possible drilling at the project.
  • Kottenay Silver Inc. reported that new assay results from outcropping quartz veins support the potential for the discovery of a high-grade silver deposit at its Columba project in Chihuahua. The veins have strike lengths of 200 m to 2 km, and thicknesses from 0.5 to 6 m. In the latest field campaign 50 channel and 90 grab samples were collected on eight of the ten veins in the property. “Highlights include 33 samples, between lengths of 0.70 and 2.0 meters, returning silver values ranging between 30 gpt to 397 gpt and 55 samples returning grades >10 gpt”. Contiguous channel samples averaged 4.9 m @ 198 gpt Ag; 3.5 m @ 276 gpt Ag; 2.2 m @ 330 gpt Ag; 6.6 m @ 182 gpt. The next steps are additional mapping and surface sampling to prioritize drill targets and obtain drill permits.
  • Silver Viper Minerals Corp. released previously unreported significant drill intercepts from a historical database from La Virginia project in Sonora. The database was generated by Minefinders Corporation Ltd. and Pan American Silver Corp. up to 2013, and includes information on 52,635 m of drilling in 188 holes, with only the first 50 holes having been disclosed in press releases. The disclosed tables include significant intervals from seven areas, here some of these (true width estimated at 75-80% of core length): At Las Huatas, 18 m @ 2.81 gpt Au, 187 gpt Ag (including 1.5 m @ 3.50 gpt Au, 399 gpt Ag; 1.5 m @ 21.6 gpt Au, 1,173 gpt Ag); 0.6 m @ 11.54 gpt Au, 1,156 gpt Ag; 12 m @ 1.26 gpt Au, 109 gpt Ag; 1.5 m @ 6.52 gpt Au, 625 gpt Ag; 8.5 m @ 1.38 gpt Au, 105 gpt Ag (including 3.95 m @ Au, 2.07 gpt Au, 158 gpt Ag); 1.15 m @ 9.67 gpt Au, 658 gpt Ag; 17.5 m @ 0.72 gpt, 35 gpt Ag; 20.45 m @ 1.04 gpt, 69 gpt Ag; 0.9 m @ 54.79 gpt Au, 43 gpt Ag; 7 m @ 1.37 gpt Au, 65 gpt Ag; 7.55 m @ 1.56 gpt Au, 88 gpt Ag; 1.5 m @ 4.92 gpt Au, 421 gpt Ag; 12.9 m @ 2.44 gpt, 122 gpt Ag. At La Virginia, 1 m @ 3.27 gpt Au, 196 gpt Ag; 18 m @ 2.59 gpt Au, 119 gpt Ag (including 1.7 m @ 18.27 gpt Au, 794 gpt Ag); 8.5 m @ 0.87 gpt Au, 36 gpt Ag; 0.8 m @ nil Au, 300 gpt Ag; 19 m @ 0.65 gpt Au, 29 gpt Ag. At Con Virginia, 5.75 m @ 2.35 gpt Au, 153 gpt Ag; 11.7 m @ 0.62 gpt Au, 77 gpt Ag; 17.4 m @ 0.87 gpt Au, 81 gpt Ag; 2.05 m @ 6.73 gpt Au, 976 gpt Ag; 1.2 m @ 7.78 gpt Au, 1055 gpt Ag. At El Oriental, 2 m @ 2.47 gpt Au, 19 gpt Ag; 5 m @ 2.40 gpt Au, 60 gpt Ag; 3.8 m @ 11.99 gpt Au. 77 gpt Ag; At La Cascada, 1.3 m @ 20.92 gpt Au, 37 gpt Ag. At Huatas Sur, 2.8 m @ 1.05 gpt Au, 81 gpt Ag; 1.95 m @ 1.31 gpt Au, 29 gpt Ag; 3.75 m @ 9.32 gpt Au, 144 gpt Ag (including 1.55 m @ 19.97 gpt Au, 254 gpt Ag). At La Colonia, 0.85 m @ 3.04 gpt Au, 23 gpt Ag. Limited confirmation drilling was completed at the Las Huatas and Con Virginia prospects. These holes were drilled to test gaps in the known data. Previously undrilled prospects Huarache, La Gloria and El Rubi were also tested in 2018. To date, the Company has released results for the confirmation drilling at Las Huatas. Subsequent results and a discussion of the 2018 program and plans for 2019 are scheduled for release in the near future.

ON MINING

  • Consolidated Zinc Ltd. provided an update on production at its Plomosas mine in Chihuahua for December 2018. During the period 4,072 tonnes were hauled to surface @ 10.2% Zn, 2.4% Pb. Recoveries at the Santa Eulalia plant have been 89% Zn, 86% Pb. All the ore mined was from an area outside of the JORC defined resource.
  • Great Panther Silver Ltd. reported fourth quarter and 2018 production results for its properties in Mexico. During the year the company produced 1.86 M Oz Ag, 20,161 Oz Au, 1,958 tonnes Pb, 2,361 tonnes Zn from the two operations. At Topia, Durango, 18.9 K tonnes @ 326 gpt Ag, 0.83 gpt Au were processed during the quarter, recovering 92.9% Ag, and 53.4% Au to produce 183.7 K Oz Ag, 267 Oz Au, 474 tonnes Pb, 661 tonnes Zn. At the Guanajuato mine Complex 70.4 K tonnes @ 129 gpt Ag, 2.01 gpt Au were processed, recovering 87.2% Ag, 84.4% Au to produce 254.4 K Oz Ag, 3,833 Oz Au. Reflecting low metal prices, operations at the Guanajuato Mine Complex is shifting all production to the San Ignacio mine for 2019.
  • United States Antimony Corp. reported the status of beneficiation of ore at Los Juarez, Queretaro, where 30 K tonnes have been mined. The crusher and flotation circuits at the Puerto Blanco mill (in Guanajuato) are ready for production, while the tailings installation is nearly complete. Most of the cyanide leach plant has been built and is being installed. The caustic leach plant at Madero to process the flotation concentrates is operational and has recovered the precious metals with close to a 100% recovery, and pilot production of Au, Ag and Sb is about to start in Q1 2019.
  • Sierra Metals Inc. informed it is on track on its staged mine production increase from 3,000 to 3,600 tonnes per day (TPD) in Q1 2019 (and 5,000 TPD by 2020) at its Bolivar mine in Chihuahua. “Completion of the expansion included the installation of a refurbished mill, an electrical substation with 1250 KVA of capacity, a secondary crusher and a hydrocyclone cluster that allows for finer grind size optionality that is estimated to provide a 6% increase in copper recoveries from 80% to 86% at Bolivar Mine”.

Endeavour Silver Corp. reported consolidated production of 5.5 MOz Ag, 52,967 Oz Au (9.5 MOz AgEq) in the fourth quarter 2018.  Drilliing at Bolañitos returned multiple high-grade intersections, including 1.1 m (TW) @ 1,415 gpt Ag, 2.25 gpt Au in the San Miguel mine. Parral drilling and underground sampling returned  multiple high.grade intersections, including 4.2 m (TW) @ 934 gpt Ag, 0.21 gpt Au, 3.0% Pb, 5.9% Zn. El Compas commissioning has been delayed by metallurgical and plant issues that have been or are in the process of being corrected, while the mine development has been completed and and a 10K tonnes stockpile produced. At Guanaceví, the Milache and SCS orebodies development commenced. At Bolañitos, drilling outlined several mineralized areas and extensions to known areas, with potential to extend the mine life. At El Cubo, drilling of new targets failed to intersect any economic mineralization, and production is to be halved to increase mine life while more reserves are sought.

  • New Gold Inc. presented fourth quarter results, including figures from the Cerro San Pedro property in San Luis Potosi.  Mine closure activities continued at the Cerro San Pedro mine, and 1,448 Oz Au were recover by residual leaching of heap pads.
  • Torex Gold Resources Inc. announced 354 K Oz Au were produced at its El Limon-Guajes mine in Guerrero.
  • Capstone Mining Corp. released preliminary fourth quarter production results for 2018, including figures from its operations in Mexico. At Cozamin in Zacatecas, 278.8 K tonnes were processed at a rate of 3,030 tonnes per day (TPD) @ 1.61% Cu, 1.29% Zn, 0.41% Pb, 50.2 gpt Ag, recovering 94.3% Cu, 65.9% Zn, 58.5% Pb, 75.5% Ag to produce 9.36 M Lb Cu, 5.22 M Lb Zn, 3.15 M Lb Pb, 339.2 K Oz Ag, 68 Oz Au.

ON FINANCING

  • Silver One Resources Inc. closed its previously announced private placement financing for gross proceeds of C$623.7 K. Silver One also commented it is not aware of any information other than that previously disclosed in its public filings, news releases or statements, which would result in the levels of trading activity and change in the share price recorded in recent days (Peñasco Quemado, Sonora; La Frazada, Nayarit).
  • Gainey Capital Corp. received conditional approval by the TSX Venture Exchange to close the first tranche of its non-brokered private placement of up to $1.15 M announced on November 28, 2018. In this tranche the closing accrued gross proceeds of $750 K (El Colomo, Nayarit).
  • SilverCrest Metals Inc. informed the completion its non-brokered private placement with Pierre Beaudoin, for gross proceeds of Cdn$292 K (Las Chispas, Sonora).

ON RESOURCES AND DEVELOPMENT

  • Oceanus Resources Corp. informed that during 2018 carried a regional prospecting and mapping program on its El Tigre property in Sonora. The objective was to know the extent of El Tigre Formation, the rock package that hosts the historic El Tigre mine. Such formation was found to extend 5 km to the south reaching the Lluvia de Oro prospect, and 3 km further to the south at La Mancha workings. Prospecting and mapping was carried out also to the east, where several historical underground workings were located. Given the positive results, Oceanus applied for an additional 4,465 hectares, increasing its land position to 26,307 hectares. The company will continue prospecting, mapping and sampling during 2019 to establish drill targets.
  • SilverCrest Metals Inc. released further in-fill results from its Las Chispas property in Sonora. The 20 reported in-fill holes targeted the high-grade Area 51 zone, Babicanora Central zone and Babicanora Footwall and Hangingwall veins. On previous drilling (used for the past resource calculation) the Area 51 had an estimated average 2.7 m of true width (TW) @ 7.13 gpt, 614 gpt Ag (1,148 gpt AgEq); the weighted average of the 28 in-fill holes to date is 3.9 m (TW) @ 11.36 gpt Au, 1,064 gpt Ag (1,915 gpt AgEq). The latest results include the best drilling interception to date: 9.3 m @ 39.66 gpt Au, 3,361 gpt Ag (including 0.4 m @ 252 gpt Au, 9,740 gpt Ag; 0.9 m @ 92.7 gpt Au, 7,570 gpt Ag; 0.4 m @ 47.30 gpt Au, 7,790 gpt Ag).
  • Excellon Resources Inc. announced results from underground exploration at the Platosa mine in Durango. The high-grade 623 Manto has been further defined with diamond drilling results, of which the next results were highlighted: 6.6 m @ 0.1 gpt Au, 704 gpt Ag, 5.8% Pb, 10.1% Zn (including 2.7 m @ 0.1 gpt Au, 1,669 gpt Ag, 13.2% Pb, 24.4% Zn); 4.9 m @ 2,802 gpt Ag, 12.% Pb, 5.4% Zn (including 2.8 m @ 4,789 gpt Ag, 20.4% Pb, 9.0% Zn; 3.7 m @ 775 gpt Ag; 7.3% Pb, 6.4% Zn; 4.2 m @ 150 gpt Ag, 0.1% Pb, 2.0% Zn. The Company continues to test priority targets within the north-south trending Platosa corridor while defining new targets at Jaboncillo, PDN, Saltillera North and South and San Gilberto. A 3D induced polarization program was completed at Jaboncillo and PDN in late 2018 in preparation for drilling programs on both targets in the coming months   

ON DEALS AND CORPORATE ISSUES

  • Great Panther Silver Ltd. filed its management information circular in respect of the friendly acquisition of Beadell Resources Ltd. Once the acquisition is completed, the company will have a diversified portfolio of producing mines in Mexico and Brazil, and an advanced stage development project in Peru, with additional near-term resource growth potential from Bradell’s in and near mine targets to add to the growth potential from Great Panther’s advanced stage Coricancha project in Peru (Topia, Durango).
  • Prize Mining Corp. disclosed its failure to file its annual financial statements for the fiscal year ended August 31, 2018. As a result, the British Columbia Securities Commission issued a cease trade order on Jan 7, 2019 against the company and securities have been halted from trading on the TSX Venture Exchange. The company is working to finalize and file the needed documents and seek to have the cease trade order revoked. (Manto Negro, Coahuila).
  • Riverside Resources Inc. outlined its corporate outlook for 2019. Highlighted in it the presence of exciting drill targets at Cecilia in Sonora and Peñoles in Durango, as well as the advancing of potential joint venture partnerships and strategic alliance discussions with major companies. Riverside expects to expand outside of Mexico, beyond its participation in Croesus Gold Corp. Partner-funded exploration is expected to commence at La Silla project in Sinaloa.
  • Americas Silver Corp. and Pershing Gold Corp. announced their respective shareholders have provided the requisite approvals for their previously announced business combination (Cosala, Sinaloa).

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

On the image below, quartz-sulfide sheeted veinlets with silicified halos in argillitized fragmental tuff on a project in Jalisco. Picture by Jorge Cirett.