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

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Quartz Vein

By Miguel A Heredia

During the 8th week of the year (February 21st to February 27th, 2022), at least 24 press releases were announced by companies working in Mexico, and 6 news published by the media, with eight reporting resources and developments of their properties, six disclosing deals and corporate issues, four informing on exploration results, three discussing social issues, three communicating production results, three announcing financial issues, and three commenting on Mexican issues.  ON MEXICO ISSUES, Magna Gold announced that after several inspections at its San Francisco mine in Sonora, the suspension of the crushing and laboratory areas has been lifted. Mexico was the largest silver producer country in 2021. Marisol Barragán swore in as President of the Mexico City District of Mujeres WIM Mexico.  ON EXPLORATION, In Sonora, Aztec-Kootenay JV released results from the ongoing RC drilling program conducted at the Cervantes project, and Ranchero Gold released the final results from its recently completed phase 1 drill program at its Maíz Azul prospect within its Santa Daniela project.  In Chihuahua, Radius announced results from its ongoing drill program at its Amalia project. In Nayarit, Sierra Madre informed that it received the drilling permit from the Mexican Federal Environmental Permitting Agency (SEMARNAT) and entered into formal surface rights exploration agreement with the surface owners for its La Tigra project.  ON MINING, Americas Gold and Silver provided silver production guidance for 2022 for its Cosala Operations in Sinaloa. Orla provided a 2022 production, operating costs, capital costs, and exploration spending guidance for the full year 2022 for its Camino Rojo property, Zacatecas. Equinox Gold reported Q4 and full year 2021 production and financial results from their Mexican operations. ON FINANCING, Golden Tag increased its previously announced non-brokered private placement by up to 5M unit for aggregate proceeds of up to 1.25M (San Diego project, Durango). Pan American Silver declared dividend to shareholders of $0.12 per common share (La Colorada mine, Zacatecas). Gold Resource declared Q1, 2022 dividend to shareholders (Arista mine, Oaxaca). ON RESOURCES AND DEVELOPMENT, Silver Dollar announced that it completed a 2,424 m drill program in 11 holes at its La Joya project in Durango. Silver Tiger informed that it will commence the rehabilitation of the historic El Tigre mine. Alamos Gold updated mineral reserves and resources as of December 31, 2021 (Mulatos Mine, Sonora). Pan American Silver released results for 20 new infill and exploration holes drilled at its la Colorada mine in Zacatecas. Prime Mining announced results from its first drill program at the Guadalupe West deposit within its Los Reyes project in Sinaloa. Stroud commenced its phase 2 diamond drilling program at its Santo Domingo project in Jalisco. Mithril reported positive results from the metallurgical testwork conducted at its Copalquin project in Durango. Newmont reported mineral reserves and resources for their Peñasquito and Noche Buena properties in Zacatecas.  ON DEALS AND CORPORATE ISSUES, Benjamin Hill granted options to directors, officers and a consultant (Sonora Gold project, Sonora). Monumental announced the appointment of its CEO (Jemi project, Coahuila). Orla Mining announced the appointment of its Chief Sustainability Officer (Camino Rojo, Zacatecas). SSR informed that it has entered into a definitive agreement to sell its Pitarrilla silver project in Durango to Endeavour. Riverside signed an agreement with Agnico Eagle for the sale of the Pima property located in Sonora. Sierra Metals announced the appointment of a new member to its Board of Directors (Bolivar mine, Chihuahua). Great Panther announced senior management changes (Topia mine, Durango). ON SOCIAL RESPONSIBILITY, Esperanza Silver supported the first generation of the education program in Morelos. Grupo México offered employment to 100 women in Santa Bárbara, Chihuahua. Minera Peñasquito delivered the remodeling and rehabilitation of a plaza to the community of Nuevo Peñasco, Mazapil in Zacatecas.

ON MEXICO ISSUE

  • Magna Gold Corp., announced that after several inspections at its San Francisco mine in Sonora, the suspension of the crushing and laboratory areas has been lifted.
  • Mexico was the largest silver producer country in 2021 with 5,600 tonnes, followed by China with 3,400 tonnes and by Peru with 3,000 tonnes.
  • Marisol Barragán swore in as President of the Mexico City District of Mujeres WIM Mexico, with the primary purpose of boosting initiatives that promote equal opportunities and working conditions for women in the mining industry in Mexico,

ON EXPLORATION

  • Aztec Minerals Corp – Kootenay Silver Inc JV released results from the ongoing RC drilling program conducted at the Cervantes project. Drilling highlights include hole CAL22-004 with 1 g/t Au over 167.2m, including 4.25 g/t Au over 24.4m; hole CAL22-002 with 0.37 g/t Au over 99.1m; and hole CAL22-003 with 0.45 g/t Au over 45.7m, including 0.87 g/t Au over 13.7m. Gold appears to be widely distributed in disseminations, fractures and veinlets within quartz-feldspars porphyry, feldspar porphyry stocks, and related hydrothermal breccias.
  • Ranchero Gold Corp., released the final results from its recently completed phase 1 drill program at its Maíz Azul prospect within its Santa Daniela project in Sonora. The drill program consisted of 3,122m in 16 holes. Hole MA22-25 intersected 1.2 g/t Au over 15.6m at the La Colmena target. The company will update its geological mapping to further identify new structures that control mineralization. It also will plan the phase II drill program with the goal of expanding the newly discovered gold mineralization as well as testing additional targets including the X-structure. 
  • Radius Gold Inc., announced results from its ongoing drill program at El Cuervo area within its Amalia project in Chihuahua. Drill highlights include hole AMDD21-47 with 167 g/t Ag and 0.54 g/t Au over 96m, including 232 g/t Ag and 0.65 g/t Au over 61.20m, including 290 g/t Ag and 0.8 g/t Au over 45.20m, including 302 g/t Ag and 1.13 g/t Au over 17.35m, including 592 g/t Ag and 0.65 g/t Au over 7.35m, including 438 g/t Ag and 1.12 g/t Au over 7.85m; and hole AMDD21-46 with 44 g/t Ag and 0.13 g/t Au over 31m, including 158 g/t Ag and 0.49 g/t Au over 3.7m, including 233 g/t Ag and 0.31 g/t Au over 1.7m, and 203 g/t Ag and 0.53 g/t Au over 3.50m, including 381 g/t Ag and 1.31 g/t Au over 1.1m.  “The initial drilling at El Cuervo has confirmed a significant mineralized system and drilling is ongoing to define the size potential”.
  • Sierra Madre Gold and Silver Ltd., informed that it received the drilling permit from the Mexican Federal Environmental Permitting Agency (SEMARNAT) authorizing the use of 30 drill pads within its La Tigra project in Nayarit. The company also informed that it entered into formal surface rights exploration agreement with the ejido Santa Maria Picachos, the surface owners at La Tigra project that allows for the commencement of the drilling program.

ON MINING

  • Americas Gold and Silver Corporation provided silver production guidance for 2022 for its Cosala Operations in Sinaloa. Silver production from the Cosala Operations in 2022 is forecast to be between 0.7 to 0.9M Oz Ag, 13-15M Lb Pb, and 36 to 40M Lb Zn. “
  • Orla Mining Ltd., provided a 2022 production, operating costs, capital costs, and exploration spending guidance for the full year 2022 for its Camino Rojo property, Zacatecas. The company expects to produce from Camino Rojo over 90-100K Oz Au for the full year 2022 with an AISC of USD $600-700 per Oz Au sold. Total sustaining cost and exploration spending are expected to total USD $5M and USD $10M respectively.
  • Equinox Gold Corporation reported Q4 and full year 2021 production and financial results from their Los Filos and Mercedes mines located in Guerrero and Sonora respectively. At Los Filos mine, Guerrero, Equinox mined 3.4M tonnes of 0.77 g/t Au (open pit) and 162K tonnes of 3.11 g/t Au (underground) to produce 54.7K Oz Au. It sold 55,144 Oz Au during Q4, 2021 and reported revenue of USD $98.8M, and cash and AISC of USD $1,311 and USD $1,433 per Oz Au sold respectively. For the full year, the company mined 7.09M tonnes of 0.71 g/t Au (open pit) and 519K tonnes of 3.23 g/t Au to produce 144.1K Oz Au. It sold 143.8K Oz Au during the full year 2021, and reported revenue of USD $257.2M, and cash and AISC of USD $1,575 and USD $1,753 per Oz Au sold. Equinox provided production and guidance cost for 2022. It expects to produce between 160-180KOz Au at cash and AISC of USD $1400-1600 and USD $1,625-1,700 per Oz Au sold respectively. At Mercedes mine, Sonora, the company mined 125K tonnes and processed 161K tonnes of 2.30 g/t Au during Q4, 2021 to produce 11,35K Oz Au. It sold 10.3K Oz Au and reported revenue of USD $18.9M and cash and AISC of USD $1,091 and USD $1,584 respectively. For the full year, the company mined 348K tonnes and processed 398K tonnes of 2.59 g/t Au to produce 31.8K Oz Au, It sold 30.9K Oz Au, and reported revenue of USD $56.9M , and cash and AISC of USD $966 and USD $1,357 per Oz Au respectively. On Dec 16, 2021, Equinox entered into an agreement to sell Mercedes mine to Bear Creek.

ON FINANCING

  • Golden Tag Resources Ltd., increased its previously announced non-brokered private placement by up to 5M unit for aggregate proceeds of up to $1.25M. The company plans to use the gross proceeds to fund advancement of its San Diego project in Durango.
  • Pan American Silver Corp., declared dividend of $0.12 per common share under new dividend policy. The cash dividend of $0.12 per common share, or approximately $25.3M in aggregate cash dividends, is payable on or about March 21, 2022 (La Colorada mine, Zacatecas).
  • Gold Resource Corporation declared its quarterly dividend of $0.01 per common share for Q1, 2022 to shareholders (Arista mine, Oaxaca).

ON RESOURCES AND DEVELOPMENT

  • Silver Dollar Resources Inc., announced that it completed a 2,424 m drill program in 11 holes on the Noria portion at its La Joya project in Durango. Aim of the drill program was target development and testing for possible structural extensions of known mineralized zones identified in historical drilling. Assays are pending and drilling is on standby until the company receives assay results and gets an interpretation.
  • Silver Tiger Metals Inc., informed that it has contracted Cominvi, an underground mine contractor, to commence the rehabilitation of the historic El Tigre mine. “Initial rehabilitation will begin on the Level 7 main entry to the Historic El Tigre Mine to allow access to the Sooy Vein, El Tigre Vein and the Seitz Kelly Vein in contemplation of underground channel sampling, drilling and bulk sampling on those veins and the black shale horizon”.
  • Alamos Gold Inc., updated mineral reserves and resources as of December 31, 2021. The company increased its mineral reserves at Mulatos mine 14% to 1.5M Oz Au (29.4M tonnes of 1.64 g/t Au) with a 32% increase in grades reflecting the addition of higher-grade underground mineral reserves at Puerto del Aire, which is adjacent to the main Mulatos pit. The company reported proven + probable reserves for 29.36M tonnes of 1.64 g/t Au for a total of 1.54M Oz Au contained. It also reported Measured + Indicated resources for 8.2M tonnes of 1.34 g/t Au for a total of 353K Oz Au and Inferred resources for 1.72M tonnes of 1.06 g/t Au for a total of 59K Oz Au contained. The remaining mineral reserve mine of life of the Mulatos district is approximately six years as of December 31, 2021 (excluding the underground mineral reserves of Puerto del Aire Deposit.
  • Pan American Silver Corp., released results for 20 new infill and exploration holes drilled at its la Colorada mine in Zacatecas. Drill highlights include hole U-83-21 with 64 g/t Ag, 0.06% Cu, 1.9% Pb, and 3.8% Zn over 322.85m, including 178 g/t Ag, 0.06% Cu, 4.3% Pb, and 6.3% Zn over 64.90m; hole S-73-21 with 76 g/t Ag, 0.36% Cu, 4.2% Pb, and 9.5% Zn over 78.55m, including 91 g/t Ag, 0.46% Cu, 5.2% Pb, and 11.4% Zn over 58.1m; hole D-73-01-21 with 79 g/t Ag, 0.29% Cu, 2.2% Pb, and 5.7% Zn over 159 m, including 112 g/t Ag, 0.45% Cu, 3.2% Pb, and 8.1% Zn over 99.2m; hole D-71-01-21 with 48 g/t Ag, 0.05% Cu, 3% Pb, and 5.8% Zn over 44.65m, including 100 g/t Ag, 0.28% Cu, 7.3% Pb, and 7.1% Zn over 15.95m; hole D71-03-21 with 60 g/t Ag, 0.09% Cu, 2.1% Pb, and 3.2% Zn over 22.1m, and 42 g/t Ag, 0.07% Cu, 1.2% Pb, and 3.9% Zn over 55.60m, and 91 g/t Ag, 0.2% Cu, 4.8% Pb, and 8% Zn over 191.85m; and hole D-21-02-21 with 59 g/t Ag, 0.2% Cu, 1.2% Pb, and 3.8% Zn over 219.90m, including 51 g/t Ag, 0.2% Cu, 2% Pb, and 6.1% Zn over 91.3m.
  • Prime Mining Corp., announced results from its first drill program at the Guadalupe West deposit within its Los Reyes project in Sinaloa. Twelve new holes, of which seven were diamond holes and 5 were RC holes are reported and drill highlights include hole 21GW-12R with 1.68 g/t Au and 26 g/t Ag over a true width (TW) of 19.8m; hole 21GW-07 with 1.6 g/t Au and 50 g/t Ag over a TW of 8.6m, and 1.92 g/t Au and 34 g/t Ag over a TW of 17.7m; hole 21GW-02 with 1.82 g/t Au and 52 g/t Ag over 4.8m, and 0.53 g/t Au and 15 g/t Ag over a TW of 27.6m; hole 21GW-01 with 1.08 g/t Au and 38 g/t Ag over a TW of 3.6m; and hole 21GW-11R with 0.9 g/t Au and 63 g/t Ag over a TW of 4.3m.
  • Stroud Resources Ltd., commenced its phase 2 diamond drilling program, which will consist of 3,500m targeting the newly discovered Zopilotes Vein, the Guadalupe Vein, and the La Raya Vein, within its Santo Domingo project in Jalisco. “The company’s current drilling permit covers 13 drill pads (drill setups) located across the property. A second drilling permit will be submitted seeking additional drill pad locations to facilitate further delineation of the three known mineralized vein systems and other exploration targets”. 
  • Mithril Resources Ltd., reported positive results from the metallurgical testwork conducted at its Copalquin project in Durango. The company reported that the final overall recoveries after leaching of the flotation products were 96.5% for gold and 96.1% for silver.
  • Newmont Corporation reported mineral reserves and resources for their Peñasquito and Noche Buena properties in Zacatecas as of December 31, 2021. At Peñasquito, Zacatecas, Newmont reported Proven Reserves of 115M tonnes of 0.61 g/t Au, 38 g/t Ag, 0.9% Zn, and 0.4% Pb for a total of 2.25M Oz Au, 141.5M Oz Ag, 2.38 B Lb Zn, and 940M Lb Pb and Probable Reserves of 247M tonnes of 0.51 g/t Au, 32 g/t Ag, 0.7% Zn, and 0.3% Pb for a total of 4.08M Oz Au, 252.4M Oz Ag, 3.87 B Lb Zn, and 1.64 B Lb Pb. Proven + Probable Reserves are 362M tonnes of 0.54 g/t Au, 34 g/t Ag, 0.8% Zn, and 0.3% Pb for a total of 6.33M Oz Au, 393.9M Oz Ag, 6.25 B Lb Zn, and 2.58 B Lb Pb. Measured Resources are 31.4M tonnes of 0.27 g/t Au, 26 g/t Ag, 0.7% Zn, and 0.3% Pb for a total of 280K Oz Au, 26M Oz Ag, 460M Lb Zn, and 200M Lb Pb, and Indicated Resources of 176.6M tonnes of 0.27 g/t Au, 26 g/t Ag, 0.6% Zn, and 0.3% Pb for a total of 1.5M Oz Au, 149.6M Oz Ag, 2.2 B Lb Zn, and 1.02 B Lb Pb. Measured + Indicated Resources are  208M tonnes of 0.27g/t Au, 26 g/t Ag, 0.6%Zn, and 0.3% Pb for a total of 1.78M Oz Au, 175.6M Oz Ag, 2.69 B Lb Zn, and 1.23 B Lb Pb. Inferred Resources are 89.8M tonnes of 89.8M tonnes of 0.4 g/t Au, 28 g/t Ag, 0.5% Zn, and 0.2% Pb for a total of 1.16M Oz Au, 80.84M Oz Ag, 1.07 B Lb Zn, and 480M Lb Pb. At Noche Buena, Zacatecas (50% attributable to Newmont), it reported Indicated Resources of 21M tonnes of 0.37 g/t Au and 14 g/t Ag for a total of 250K Oz Au and 9.4M Oz Ag, and Inferred Resources of 1.6M tonnes of 1.07 g/t Au and 11 g/t Ag for a total of 230K Oz Au and 570K Oz Ag. Resources are reported exclusive of Reserves.

ON DEALS AND CORPORATE ISSUES

  • Benjamin Hill Mining Corp., granted 1.4.M options exercisable at $0.44 per common share of which 980K options granted to directors/officers shall have a term of 5 years, and 500K options granted to a consultant shall have a term of 2 years (Sonora Gold project, Sonora).
  • Monumental Minerals Corp., announced the appointment of its CEO (Jemi project, Coahuila).
  • Orla Mining Ltd., announced the appointment of its Chief Sustainability Officer, effective march 1, 2022 (Camino Rojo, Zacatecas).
  • SSR Mining Inc., informed that it has entered into a definitive agreement to sell its Pitarrilla silver project in Durango to Endeavour Silver Corp., for a total consideration of up to USD $127M. This consideration includes USD $35M in cash, USD $35M in Endeavour shares, and a 1.25% Net Smelter Return (“NSR”) royalty on the Pitarrilla property.
  • Riverside Resources Inc., signed an agreement with Agnico Eagle for the sale of the Pima property located in Sonora. Riverside will receive cash and completes the pass through royalty transfer with Millrock Resources Inc. 
  • Sierra Metals Inc., announced the appointment of a new member to its Board of Directors (Bolivar mine, Chihuahua).
  • Great Panther Mining Limited informed about the resignation of its President and CEO and announced the appointment of his replacement on an interim basis (Topia mine, Durango).

ON SOCIAL RESPONSIBILITY

  • Esperanza Silver, supported the first generation of 14 people between women and men who accredited the upper secondary level as a results of an alliance in favor of the education integrated for inhabitants of the community of San Agustin Tetlama and Esperanza Silver.
  • Grupo México offered employment to 100 women in Santa Bárbara, Chihuahua. Andrés Torres, general secretary of the Section 11 Miners’ Union reported that by 2022 there is a goal of employing a hundred women in the different areas of the companies.
  • Minera Peñasquito (Newmont) delivered the inhabitants of the community of Nuevo Peñasco, belonging to Ejido Cedros, in Mazapil, the remodeling and rehabilitation of their plaza, as part of Newmont Peñasquito’s commitment to creating shared value in the communities in its area of influence. Additionally, the company provided 27 trees of different species, the same that were planted throughout the square.

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 quartz vein from a low sulphidation epithermal vein project in Chihuahua, Mexico.  Photo by Miguel A Heredia.

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

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Banded quartz vein

By Miguel A Heredia

During the 6th week of the year (February 7th to February 13th, 2022), at least 18 press releases were announced by companies working in Mexico, and 3 news published by the media, with six reporting resources and developments of their properties, six informing on exploration results, four discussing social issues, three communicating production results, one disclosing deals and corporate issues, and one announcing financial issues.  ON MEXICO ISSUES, no relevant news.  ON EXPLORATION, In Sonora, Colibri reported assays received from its ongoing RC drill program at its Evelyn project, and La Reyna commenced a 10,000m drill program at its La Gloria project. In Nayarit, Sierra Madre announced the commencement of its Phase II drill program at its Tepic project.  In Zacatecas, Alien Metals informed that it has been granted with all the necessary statutory and local permits to be legally able to commence drilling on its Donovan 2, Los Campos and San Celso permits.  In Jalisco, Stroud presented drill results from its Santo Domingo project. ON MINING, GoGold announced Q1, 2022, for the three months ended December 31, 2021 (Parral tailings project, Chihuahua). Avino provided its outlook for 2022. Minera Alamos provided a 2021 year-end summary of the ramp-up of mining activities at its Santana mine in Sonora. ON FINANCING, Kootenay entered into a private placement financing for gross proceeds of up to $4M (Columba project, Chihuahua). ON RESOURCES AND DEVELOPMENT, Impact Silver completed Phase 2 of the Veta Negra drill program in its Zacualpan mining district in Mexico State. Silver Tiger presented results from its ongoing drill program on the Seitz Kelly Vein at its El Tigre project in Sonora. Zacatecas Silver provided an update on its ongoing drilling activities at the Panuco deposit and San Gil Breccia within its Zacatecas property. Fabled provided a summary of the exploration work carried out at its Santa Maria project, Chihuahua. Discovery Silver released results from 23 holes from its Phase 2 drill program at its Cordero project, Chihuahua. GR Silver presented channel and drill results from the Loma Dorada – La Colorada Vein System, within its Plomosas project, Sinaloa. Great Panther updated mineral resource estimates for their Topia and Guanajuato mines.  ON DEALS AND CORPORATE ISSUES, Monarca Minerals announced management changes (San Jose project, Chihuahua).   ON SOCIAL RESPONSIBILITY, Grupo México continues to firmly support Cananea against COVID-19. Fundación Grupo México launched a contest to present high-impact projects for the solution of social and/or environmental problems. Peñoles and Fresnillo plc promote the participation of girls and women in science.  Minera Cuzcatlán achieved 91% recycling and use of urban solid waste and special handling in 2021.

ON MEXICO ISSUE

  • No relevant news.

ON EXPLORATION

  • Colibri Resource Corporation reported assays received from its ongoing RC drill program at its Evelyn project in Sonora.- The best drill intercepts were encountered in holes EVE21-027 with 2.82 g/t Au over 14m, including 4.82 g/t Au over 8m, including 12.19 g/t Au over 3m, including 30 g/t Au over 1m; and hole EVE21-019 with 2.36 g/t Au over 15m, including 33.7 g/t Au over 1m. Colibri is in the process of executing a fully funded 10,000 metre RC drill program on the Evelyn Gold Project.
  • Reyna Gold Corp., commenced a Phase 1, 10,000m drill program at its La Gloria project in Sonora. The aim of the initial drilling will be to explore for extensions of known mineralization from the Main Zone and El Sombrero targets.
  • Sierra Madre Gold and Silver Ltd., announced the commencement of its Phase II drill program at its Tepic project in Nayarit. The company increased its permitted drill pads from 47 to 182 drill pads with the Secretariat of Natural Resources and Environment (SEMARNAT). This will allow Sierra Madre to potentially drill in excess of 300 holes, utilizing the same drill pads with offset drilling. The company has already secured exploration agreements with all surface owners in the areas to be drilled.
  • Alien Metals Ltd., informed that it has been granted with all the necessary permissions to commence drilling on its Los Campos and San Celso Silver Projects and the Donovan 2 Copper-Gold Project in Zacatecas.
  • Stroud Resources Ltd., presented drill results from its Santo Domingo project in Jalisco. Drilling highlights include hole SD-21-49 on Guadalupe Vein with 0.32 g/t Au and 70 g/t Ag (94 g/t AgEq) over 2.15m, plus 0.01 g/t Au and 624 g/t Ag (625 g/t AgEq) over 1.55m, and plus 0.13 g/t Au and 42 g/t Ag /52 g/t AgEq) over 2.70m; hole SD-21-52 on La Raya Vein with 1.11 g/t Au and 113 g/t Ag (196 g/t AgEq) over 15.10m, including 1.36 g/t Au and 137 g/t Ag (240 g/t AgEq) over 10.5m, including 3.07 g/t Au and 130 g/t Ag (360 g/t AgEq) over 2.70m; and hole SD-21-57 on Guadalupe Vein with 0.5 g/t Au and 138 g/t Ag (176 g/t AgEq) over 4.55m, plus 0.18 g/t Au and 50 g/t Ag (64 g/t AgEq) over 0.65m, plus 1.05 g/t Au and 197 g/t Ag (276 g/t AgEq) over 6.10m, including 2.02 g/t Au and 362 g/t Ag (513 g/t AgEq) over 3.05m, plus 0.04 g/t Au and 65 g/t Ag (68 g/t AgEq) over 1.05m, plus 0.31 g/t Au and 35 g/t Ag (59 g/t AgEq) over 7.9m, including 0.63 g/t Au and 61 g/t Ag (108 g/t AgEq) over 2.9m, plus 0.82 g/t Au and 67 g/t Ag (137 g/t AgEq) over 3.40m, including 1.72 g/t Au and 102 g/t Ag (231 g/t AgEq) over a.a5m, plus 0.07 g/t Au and 53 g/t Ag (59 g/t AgEq) over 10m, including 0.08 g/t Au and 57 g/t Ag (63 g/t AgEq) over 8m, plus .6 g/t Au and 45 g/t Ag (65 g/t AgEq) over 1.2m. “The company is currently updating its planned Phase 2 drilling program and will refine the program as the balance of assay results is received. Remaining assays from the 2021 drilling program will be reported as they continue to be released from the laboratory. Phase 2 drilling is expected to start soon, with initial assay results expected by the end of Q1 2022”.

ON MINING

  • GoGold Resources Inc., announced Q1, 2022, for the three months ended December 31, 2021. The company reported revenues of USD $8.9M from the sale of 195.7K Oz Ag and 2,558 Oz Au (401,214 Oz AgEq) from its Parral Tailings project in Chihuahua.  Cash and AISC were USD $13.51 and USD $18.58 per Oz AgEq respectively.
  • Avino Silver & Gold Mines Ltd., provided its outlook for 2022. The company will continue with the completion of the Dry Stack Tailing Storage Facility which will represent a cost of approximately $1M. The existing Preliminary Economic Assessment (PEA) will be used as the framework for an updated study, either at the Pre-Feasibility Study (PFS) level or at the Feasibility Study (FS) level. For 2022, Avino expects to process 600K tonnes to produce between 2.2-2.6M Oz AgEq. In exploration and evaluation, the company plans to drill approximately 15,000m on the Avino property and will target the areas below the current mining area at Avino (ET Area), the Bart vein located very close to the Avino workings as well as La Potosina. Additional holes may also be drilled on the Oxide Tailings Resource to determine if additional tonnage could be added to the existing 3.12M tonnes. 
  • Minera Alamos Inc., provided a 2021 year-end summary of the ramp-up of mining activities at its Santana mine in Sonora. The company reported that approximately 9,100 Oz Au were mined and stacked on the leach pad during the first phase of the project mining activities. Cumulative Au recovery from mineralization under leach for more than 30 days exceeds 70% with additional recovery ongoing. “Mining rates have approached the initial monthly targets of 100,000 tonnes of mineralized material from the Nicho Norte starter pit prior to the next phase of operations where production will ultimately expand to also include material from the main Nicho deposit”.

ON FINANCING

  • Kootenay Silver Inc., entered into a private placement financing for gross proceeds of up to $4M. Net proceeds will be used for working capital requirements and other general corporate purposes (Columba project, Chihuahua).

ON RESOURCES AND DEVELOPMENT

  • Impact Silver Corp., completed Phase 2 of the Veta Negra drill program in its Zacualpan mining district in Mexico State. It consisted of eight holes for a total of 1,221m to test the mineralization below and to the south of the operating open pit. Drilling highlights include hole Z21-38 (Socorro Vein) with 428 g/t Ag, 0.25 g/t Au, 0.6% Pb, and 1.5% Zn over a true width (TW) of 6.88m; hole Z21-39 (Veta Negra Vein) with 487 g/t Ag, 0.26 g/t Au, 0.2% Pb, and 0.4% Zn over a TW of 12.97m; hole Z21-41 (Veta Negra) with 258 g/t Ag, 0.06 g/t Au, 0.1% Pb, and 0.3% Zn over a TW of 19.85m; and hole Z21-46 (El Socorro splay) with 457 g/t Ag, 0.63 g/t Au, 1.8% Pb, and 3.8% Zn over a TW of2.29m.
  • Silver Tiger Metals Inc., presented results from its ongoing drill program on the Seitz Kelly Vein at its El Tigre project in Sonora. The most significant drill intercept was encountered in hole ET-21-293 on the Seitz Kelly Hangingwall Vein with 0.03 g/t Au, 149 g/t Ag, 0.06% Cu, 0.1% Pb, and 0.5% Zn (175 g/t AgEq) over 6.5m, including 0.09 g/t Au, 1,664 g/t Ag, 0.63% Cu, 0.8% Pb, and 0.2% Zn (1,758 g/t AgEq) over 0.5m, plus 0.05 g/t Au, 290 g/t Ag, 0.1% Cu, 0.2% Pb, and 0.2% Zn (314 g/t AgEq) over 7.4m on Seitz Kelly Vein, including 0.17 g/t Au, 1,582 g/t Ag, 0.52% Cu, 0.9% Pb, and 1.3% Zn (1,708 g/t AgEq) over 0.9m.
  • Zacatecas Silver Corp., provided an update on its ongoing drilling activities at the Panuco deposit and San Gil Breccia within its Zacatecas property. The company has completed 29 angled holes at Panuco North, of which 15 are still with assays pending. Assays are also pending for 4 holes completed at northern splay of Panuco Central Vein. Zacatecas Silver also informed that at San Gil Breccia, 36 diamond drill pads were approved while at Panuco North, the approval for an additional 29 drill pads is expected within the next few weeks.
  • Fabled Silver Gold Corp., provided a summary of the 2021 exploration work carried out at its Santa Maria project, Chihuahua. The company completed 50 surface diamond drill holes for a total of 13,693m, of which 36 were exploration holes and 14 were definition holes, and 21 underground diamond drill holes for a total of 2,091m. In summary, it has drilled 71 diamond drill holes (surface + underground) totalling 15,784m.  Fabled have taken 5,944 surface drill hole samples, 846, underground drill hole samples, and 120 surface exploration samples for a total of 6,900 samples collected. “Moving forwards the company will compile all the results from drilling, surface mapping and sampling, plus geophysical anomalies in preparation for the design and selection for a Phase 2 drill program. Phase 2 will not only seek to grow the mineralization as seen above but to also explore the eastern sector of the property which has yet to be drilled”.
  • Discovery Silver Corp., released results from 23 holes from its Phase 2 drill program at its Cordero project, Chihuahua. Highlights intercepts include hole C21-533 (NE Extension) with 24 g/t Ag, 0.24 g/t Au, 0.6% Pb, and 0.8% Zn (91 g/t AgEq) over 16.4m, plus 99 g/t Ag, 0.26 g/t Au, 1.9% Pb, and 1.8% Zn (247 g/t AgEq) over 49.9m, including 185 g/t Ag, 0.46 g/t Au, 3.5% Pb, and 3.2% Zn (446 g/t AgEq) over 21.4m; hole C21-556 (South Corridor) with 37 g/t Ag, 0.04 g/t Au, 0.9% Pb, and 1.2% Zn (114 g/t AgEq) over 43.6m, plus 61 g/t Ag, 0.07 g/t Au, 1.4% Pb, and 4.8% Zn (288 g/t AgEq) over 46.8m, including 271 g/t Ag, 0.15 g/t Au, 5.5% Pb, and 35.5% Zn (1,777 g/t AgEq) over 5.2m; hole C21-555 (South Corridor) with 28 g/t Ag, 0.09 g/t Au, 0.2% Pb, and 1.6% Zn (101 g/t AgEq) over 113.6m, including 46 g/t Ag, 0.16 g/t Au, 0.3% Pb, and 2.9% Zn (173 g/t AgEq) over 45.8m; and hole C21-545 (South Corridor) with 33 g/t Ag, 0.06 g/t Au, 0.7% Pb, and  0.9% Zn (92 g/t AgEq) over 165m, plus 45 g/t Ag, 0.08 g/t Au, 1% Pb, and 1% Zn (119 g/t AgEq) over 25.7m, including 58 g/t Ag, 0.07 g/t Au, 1.1% Pb, and 1.2% Zn (141 g/t AgEq) over 31.3m. “The Company has now completed 47,600 m (86 holes) as part of its Phase 2 drill program. Phase 2 drilling will continue through the remainder of the year and will be focused on three key areas: (1) Pre-Feasibility Study drilling consisting of reserve definition and engineering drilling; (2) resource expansion in the northeast of the deposit and at depth; and (3) initial drill testing of five property-wide targets on the Company’s extensive land package”.
  • GR Silver Mining Ltd., presented channel and drill results from the Loma Dorada – La Colorada Vein System, within its Plomosas project, Sinaloa. Highlights include hole LDS21-CH-014 with 244 g/t Ag and 16.45 g/t Au over 2.3m, including 358 g/t Ag and 6.71 g/t Au over a 1.2m; hole LDS21-CH-015 with 64 g/t Ag and 4.55 g/t Au over 1.9m, including 120 g/t Ag and 8.68 g/t Au over 0.6m; hole LDS21-01A with 25 g/t Ag and 0.36 g/t Au over 12.9m, including 82 g/t Ag and 1.78 g/t Au over 2.1m; and hole LDS21-06 with 9 g/t Ag and 0.21 g/t Au over 23.7m, including 60 g/t Ag and 1.35 g/t Au over 2m. “Drill results from the 2021 drilling program have extended several NNW-SSE trending Au-Ag veins over 600m strike length, and possibly connecting the Loma Dorada and La Colorada vein systems”. Surface channel sampling in the furthest NW portion of La Colorada returned  244 g/t Ag and 16.45 g/t Au over 2.3m  demonstrating attractive high-grade Au-Ag mineralization within the NW-SE trending vein system.
  • Great Panther Mining Limited updated mineral resource estimates for their Topia and Guanajuato Mine Complex (GMC), located in Durango and Guanajuato states respectively. Mineral Resources Estimates for each mine are shown in the tables below:

ON DEALS AND CORPORATE ISSUES

  • Monarca Minerals Inc., announced the resignation of its current President and CEO effective March 4, 2022, and the appointment of the replacement. Both members will remain as Directors of the company (San Jose project, Chihuahua).

ON SOCIAL RESPONSIBILITY

  • Grupo México continues to firmly support Cananea against COVID-19. The company donated more than 900 personal protection items to government institutions, civil society organizations and the City Hall of Cananea.
  • Fundación Grupo México launched a contest to present high-impact projects for the solution of social and/or environmental problems. Through the Foundation’s Institutional Support area, it seeks to implement this type of initiative with the aim of adding to the transformation of the cycle of traditional philanthropy, offering a procurement model that provides training, accompaniment, alliances and a novel funding source; thus contributing to creating a new vision of Corporate Social Responsibility and philanthropy.
  • Peñoles and Fresnillo plc promote the participation of girls and women in science. Peñoles and Fresnillo plc have sponsored teams throughout the country, whose members show an unparalleled passion for the challenge of developing robotics projects that represent an opportunity for social, economic and environmental improvement in their communities.
  • Minera Cuzcatlán (Fortuna Silver Mines Inc.) informed that the 460 tons  generated by the company of urban solid waste and special handling in 2021 were subjected to recycling and use processes, fulfilling the objective of caring for the environment, taking advantage of resources and protecting the health of the people, collaborators, and surrounding communities.

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

On the picture above, a banded quartz vein from a low sulphidation epithermal vein project in Chihuahua, Mexico.  Photo by Miguel A Heredia.

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

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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 First Week of December, 2021. 

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Quartz vein with massive chalcopyrite

By Miguel A Heredia

During the 48th week of the year (November 29th to December 5th, 2021), at least 24 press releases were announced by companies working in Mexico, and 3 news published by the media, with seven announcing financial issues, five reporting resources and developments of their properties, five disclosing deals and corporate issues, four informing on exploration results, three commenting on Mexican issues, and three communicating production and financial results.  ON MEXICO ISSUES, AMLO reaffirmed this week his foolish and unfortunate policy of not granting more mining concessions in Mexico. President Andrés Manuel López Obrador offered to meet the request of residents of San José del Progreso and collaborators of Compañía Minera Cuzcatlán, who asked him to avoid the closure of the San José mining unit, located in that Oaxacan municipality. The current government has stopped the issuance of mining concessions and investment in Mexico. ON EXPLORATION, In Sonora, Ranchero Gold provided an update of its ongoing drilling program conducted at its Maíz Azul project. In Chihuahua, Mammoth received from SEMARNAT a permit to expand its drilling program at its Tenoriba project. In Sinaloa, Kootenay announced drill results from its Copalito project. In Durango, Silverton signed a surface agreement for its Pluton Silver-Zinc project.  ON MINING, Americas Gold and Silver announced the re-opening of its Cosalá mine operation in Sinaloa. Santacruz reported Q3, 2021 production and financial results from their Zimapan and Rosario mines in Hidalgo and San Luis Potosi respectively. Guanajuato Silver provided a production update on its El Cubo mine, Guanajuato.  ON FINANCING, Guanajuato Silver closed the first tranche of its non-brokered private placement offering of up to 16M units at a price of CAD $0.55 per unit (El Cubo mine, Guanajuato). Fabled renewed its agreement with Agora Internet to provide online advertising, marketing, and branding services and wishes to issue 519,007 common shares in respect of the settlement, and engaged Hybrid Financial to provide marketing services (Santa Maria project, Chihuahua). First Majestic announced that it will issue USD $200M aggregate principal amount of Convertible Senior Notes or USD $230M aggregate principal amount if the over-allotment option is exercised in full (San Dimas mine, Durango). Guanajuato Silver received USD $750K from the sale of 90 tonnes of bulk Ag-Au concentrate from El Cubo mine in Guanajuato, and anticipates receiving a payment of approximately USD $1.3M for the sale of approximately 175 tonnes of additional Ag-Au concentrate on or about December 3, 2021. Orogen announced initial production at the Ermitaño deposit in Sonora where the company holds a 2% net smelter return. VVC announced an arrangement with Stockhouse Publishing to assists VVC with general market outreach and investor awareness (Gloria Copper project, Chihuahua). ON RESOURCES AND DEVELOPMENT, Discovery reported a Preliminary Economic Assessment (PEA) on its Cordero project, Chihuahua. Endeavour released high grade results from its ongoing drilling program at their Guanacevi and Bolañitos mines in Durango and Guanajuato respectively. Silver Tiger reported a wide high grade drill intersection on the Benjamin Vein at its El Tigre project, Sonora. Fabled released results from hole SM0-42 collared at its Santa Maria project, Chihuahua. GR Silver announced the discovery of a gold-silver rich mineralized zone during the initial reconnaissance drilling at Loma Dorada target within its Plomosas project in Sinaloa.    ON DEALS AND CORPORATE ISSUES, Almadex announced the appointment of two members to its Board of Directors and the retirement of one Director after many years of valued service (El Chato project, Puebla). Capstone and Mantos Copper entered into a definitive agreement to combine business to create Capstone Copper (Cozamin mine, Zacatecas). Heliostar announced the appointment of a new member to its Board of Directors (Cumaro project, Sonora). Monumental Minerals announced the appointment of an advisory board to assist the company with the exploration and drill target definition of its Jemi rare earth elements project in Coahuila. ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUE

  • AMLO reaffirmed this week his foolish and unfortunate policy of not granting more mining concessions in Mexico. He declared that mining companies were speculating in the financial market. López Obrador asserted that the existing mining concessions will be respected; however, his government will no longer give more, as many companies “cheated” and have not carried out exploitation tasks.
  • President Andrés Manuel López Obrador offered to meet the request of residents of San José del Progreso and collaborators of Compañía Minera Cuzcatlán, who asked him to avoid the closure of the San José mining unit, located in that Oaxacan municipality. The president was asked to avoid the loss of more than 1,200 direct jobs and around 8,000 indirect ones.
  • The current government has stopped the issuance of mining concessions and investment in Mexico. Parallel to the policy of null concessions, the president has presented a bill that intends to reserve strategic minerals such as lithium only for the State, denying any concession for their exploration, production or commercialization. Both their decisions not to grant a single concession in three years of government “and the promise not to do so in the entire six-year term”and to reserve strategic minerals for the State have been strongly criticized by specialists and representatives of the mining industry, to the point of warning that the future of the country is being“mortgaged.

ON EXPLORATION

  • Ranchero Gold Corp., provided an update of its ongoing drilling program conducted at its Maíz Azul project, located 3.5km east of Alamos Gold´s Mulatos mine in Sonora. To date, eight holes have been drilled totalling 1,245m, which represents 42% of the Phase 1 drill program which plans to test the La Colmena, La Cascada, and X-structure targets. 175 samples have been submitted to lab and results are expected to arrive in Q1, 2022.
  • Mammoth Resources Corp., received from SEMARNAT a permit to expand its drilling program at its Tenoriba project in Chihuahua. SEMARNAT approved the company´s application for up to 182 additional drill sites and covers the entire 6 km Au-Ag mineralization at the Tenoriba project.
  • Kootenay Silver Inc., announced drill results from Agua, 5 Señores, and Chiva Veins within its Copalito project in Sinaloa. Highlights at Agua Vein include hole BDH-20-055 with 2 g/t Au, 125 g/t Ag and 0.9% combined Pb+Zn (276 g/t AgEq) over 23m, including 9.26 g/t Au, 28 g/t Ag, and 0.6% combined Pb+Zn (643 g/t AgEq) over 5m, including 21.1 g/t Au, 29 g/t Ag, and 0.3% combined Pb+Zn (1,409 g/t AgEq) over 0.65m, plus 0.82 g/t Au, 587 g/t Ag, and 1.6% combined Pb+Zn (676 g/t AgEq) over 3m; hole BDH-21-056 with 0.22 g/t Au, 101 g/t Ag, and 0.9% combined Pb+Zn (135 g/t AgEq) over 21m, including 0.28 g/t Au, 163 g/t Ag, and 0.8% combined Pb+Zn (199 g/t AgEq) over 7m, including 0.48 g/t Au, 440 g/t Ag and 0.9% combined Pb+Zn (492 g/t AgEq) over 1.5m; and hole CDH-21-80 with 0.42 g/t Au, 63 g/t Ag, and 4.8% combined Pb+Zn (199 g/t AgEq) over 1.84m, including 0.69 g/t Au, 133 g/t Ag, and 11% combined Pb+Zn (423 g/t AgEq) over 0.43m. Highlights at 5 Señores Vein include hole BDH-20-51 with 2.95 g/t Au, 98 g/t Ag, and 0.3% combined Pb+Zn (290 g/t AgEq) over 1.4m; and hole BDH-20-052 with 0.23 g/t Au, 14 g/t Ag, and 0.6% combined Pb+Zn (34 g/t AgEq) over 3.3m, including 1.28 g/t Au, 61 g/t Ag, and 3.3% combined Pb+Zn (174 g/t AgEq) over 0.48m. Highlight on Chiva Vein include hole BDH-21-057 with 0.06 g/t Au, 106 g/t Ag, and 0.3% combined Pb+Zn (118 g/t AgEq) over 6.33m, including 0.23 g/t Au, 513 g/t Ag, and 0.8% combined Pb+Zn (546 g/t AgEq) over 0.82m; hole BDH-21-058 with 0.07 g/t Au, 41 g/t Ag, and 0.1% combined Pb+Zn (48 g/t AgEq) over 12m, including 0.5 g/t Au, 300 g/t Ag, and 1.4% combined Pb+Zn (1,364 g/t AgEq) over 0.35m; and hole BDH-21-063 with 0.92 g/t Au, 86 g/t Ag, and 5.5% combined Pb+Zn (269 g/t AgEq) over 1.82m, including 4.49 g/t Au, 453 g/t Ag, and 2.7% combined Pb+Zn (1,344 g/t AgEq) over 0.32m.
  • Silverton Metals Corp., signed a surface agreement for three years for its Pluton Silver-Zinc project with the Comisariado Ejidal of Ejido Mapimi in Durango State. The agreement provides access to the land for surface exploration work, including diamond drilling and use of a core storage facility.

ON MINING

  • Americas Gold and Silver Corporation, announced the re-opening of its Cosalá mine operation in Sinaloa. The Los Braceros plant has returned to nameplate production with a steady source of feed from a combination of existing stockpiled ore and new production from the San Rafael mine.
  • Santacruz Silver Mining Ltd., reported Q3, 2021 production and financial results from their Zimapan and Rosario mines in Hidalgo and San Luis Potosi respectively. At Zimapan mine, Hidalgo, the company milled 186,642 tonnes to produce 867.2K Oz AgEq, and sold 829.2K Oz AgEq. Cash costs per ton and per Oz AgEq produced were USD $53.88 and USD $17.72 respectively. AISC was USD $22.81 per Oz Ag Eq. The company reported revenue of USD $14.4M and a gross profit of USD $3.93M. At Rosario mine, San Luis Potosi, the company milled 2,306 tonnes to produce 5,698 Oz AgEq and sold 10,765 Oz AgEq. Cash costs per ton and per Oz AgEq produced were USD $173.04 and USD $42.81 respectively. AISC was USD $22.47 per Oz AgEq produced. The company reported revenue for USD $182K and gross profit of (272K).
  • Guanajuato Silver Company Ltd., provided a production update on its El Cubo mine, Guanajuato. The company has mined since October 15, 2021 450 tonnes of ore per day from El Cubo mine and is processing an average of 1,000 tonnes per day. It expects the plant to operate for 22 to 24 days for an average monthly operating rate of 22,500 tonnes for the next 6 months.

ON FINANCING

  • Guanajuato Silver Company Ltd., closed the first tranche of its non-brokered private placement offering of up to 16M units at a price of CAD $0.55 per unit. The net proceeds from the offering will be used to fund the ongoing exploration, development, and expansion of the Company’s El Cubo mine and mill complex and El Pinguico silver and gold project, and for general corporate and working capital purposes.
  • Fabled Silver Gold Corp., renewed its agreement with Agora Internet Relations to provide online advertising, marketing, and branding services and wishes to issue 519,007 common shares in respect of the settlement. It also engaged Hybrid Financial Ltd., to provide marketing services. Hybrid has been engaged for an initial period of 6 months, starting on December 1, 2021 and will be paid a monthly fee of $22,500 plus payable taxes (Santa Maria project, Chihuahua).
  • First Majestic Silver Corp., announced that it will issue USD $200M aggregate principal amount of Convertible Senior Notes or USD $230M aggregate principal amount if the over-allotment option is exercised in full. The company intends to use approximately USD $164.9M of the net proceeds of the offering to repurchase, in separate privately negotiated transactions, approximately USD $125.2M aggregate principal amount of its outstanding 1.875% convertible senior notes. The company intends to use the remainder of the net proceeds from the offering for general corporate purposes, including strategic opportunities (San Dimas mine, Durango).
  • Guanajuato Silver Company Ltd., received USD $750K from the sale of 90 tonnes of bulk Ag-Au concentrate grading approximately 220 Oz Ag per tonne and 2.2 Oz Au per tonne from El Cubo mine in Guanajuato, and anticipates receiving a payment of approximately USD $1.3M for the sale of approximately 175 tonnes of additional Ag-Au concentrate at similar grades on or about December 3, 2021.
  • Orogen Royalties Inc., announced initial production at the Ermitaño deposit in Sonora where the company holds a 2% net smelter return. The first doré gold-silver pour occurred November 11, 2021 and commercial production is expected in Q1 2022.
  • VVC Exploration Corporation announced an arrangement with Stockhouse Publishing to assists VVC with general market outreach and investor awareness. At the time, the company issued to Stockhouse 157,900 common shares of VVC and a $60K Note to be converted into shares in four tranches over a year. With the approval of TSX Venture Exchange, one quarter of the note ($15K) will now converted, as part of the second tranche, to 136,365 shares at a price of $0.11 per share, being yesterday´s market price discounted by 25%. The next share issuance will occur in three months (Gloria Copper project, Chihuahua).

ON RESOURCES AND DEVELOPMENT

  • Discovery Silver Corp., reported a Preliminary Economic Assessment (PEA) on its Cordero project, Chihuahua. The reports indicates that the ultimate pit contains 719M tonnes consisting of 228M tonnes of mill feed and 491M tonnes of waste for an average strip ratio of 2.2:1 Highlights include a Base Case after-tax NPV 5% of USD $1,160M and IRR of 38% assuming prices of USD $22 / Oz Ag, USD $1,600/ Oz Au, USD 1/Lb Pb, and USD $1.0/ Lb Zn; and a Upside Case after-tax NPV 5% of USD $1,889M and IRR of 55%, assuming prices of USD $27.5/Oz Ag, USD $1,880/Oz Au,  USD $1.1/Lb Pb, and USD $1.45/Lb Zn; 16-year mine life with an average annual production of 26M Oz AgEq at an AISC of USD $12.35 / Oz AgEq; initial development CAPEX of USD $368M post-tax payback of 2 years for Base Case and 1.4 years for Upside Case; 99% of tonnes processed in the PEA mine are in the Measured + Indicated category; and Ag represents > 60% of the net smelter return in the first five years of the mine life and >50% of the net smelter return over the life of mine.
  • Endeavour Silver Corp., released high grade results from its ongoing drilling program at their Guanacevi and Bolañitos mines in Durango and Guanajuato respectively. At Guanacevi mine, highlights include hole UCM-67 with 1.97 g/t Au and 1,254 g/t Ag (1,412 g/t AgEq) over a true width (TW) of 3.22m, including 3.6 g/t Au and 2,690 g/t Ag (2,978 g/t AgEq) over a TW of 0.2m, extending the El Curso orebody along strike; and hole SCSU-11 with 4.36 g/t Au, 1,450 g/t Ag (1,798 g/t AgEq) over a TW of 3.18m, including 7.97 g/t Au and 4,568 g/t Ag (5,206 g/t AgEq) over 0.31m, extending the Santa Cruz South orebody to depth. At Bolañitos mine, Guanajuato, highlights include hole BS-04 with 8.08 g/t Au and 151 g/t Ag (797 g/t AgEq) over a TW of 1.67m, including 89.6 g/t Au and 88 g/t Ag (8,046 g/t AgEq) over a TW of 0.08m on a new discovery, the Tepetateras vein, south of the current workings; and hole BS-03 with 1.26 g/t Au and 241 g/t Ag (342 g/t AgEq) over 0.96m, on the Lulu vein, south of the current workings.
  • Silver Tiger Metals Inc., reported a wide high grade drill intersection on the Benjamin Vein at its El Tigre project in Sonora. Hole ET-21-272 encountered 0.35 g/t Au, 388 g/t Ag, 0.14% Cu, 2.9% Pb, and 6.2% Zn (701 g/t AgEq) over 23.1m, including 0.5 g/t Au, 587 g/t Ag, 0.21% Cu, 4.3% Pb, and 9.2% Zn (1,051 g/t AgEq) over 15.1m, including 0.52 g/t Au, 1,642 g/t Ag, 0.58% Cu, 11.9% Pb, and 25.2% Zn (2,855 g/t AgEq) over 5.1m, including 0.37 g/t Au, 2,877 g/t Ag, 1.05% Cu, 14.6% Pb, and 30.8% Zn (4,375 g/t AgEq) over 2.6m.
  • Fabled Silver Gold Corp., released results from hole SM0-42 collared at its Santa Maria project, Chihuahua. This hole was designed to fill in a drill poor gap just to the west of the current resources. The hole intersected six gold bearing zones. Highlights are 0.49 g/t Au, 117 g/t Ag, 0.05% Pb, 0.1% Zn (143 g/t AgEq) over 3.70m, including 0.91 g/t Au, 211 g/t Ag, 0.1% Pb, 0.1% Zn, and 0.01% Cu (258 g/t AgEq) over 1.20m, plus 0.43 g/t Au, 227 g/t Ag, 0.1% Pb, 0.3% Zn and 0.01% Cu (249 g/t AgEq) over 1.71m.
  • GR Silver Mining Ltd., announced the discovery of a gold-silver rich mineralized zone during the initial reconnaissance drilling at Loma Dorada target within its Plomosas project in Sinaloa. Hole LDSP21-007 encountered 5.23 g/t Au and 166 g/t Ag over 1m. “The Loma Dorada target is currently the subject of reconnaissance drilling, testing a new geological model of NW trending, Au-Ag rich veining – a possible extension 1.2 km along strike from La Colorada”.

ON DEALS AND CORPORATE ISSUES

  • Almadex Minerals Ltd., announced the appointment of two members to its Board of Directors and the retirement of one Director after many years of valued service. The company also granted stock options to officers, employees and directors to purchase an aggregate of 1,075,000 common shares at a price of $0.31 per share which expires on December 5, 2023 (El Chato project, Puebla).
  • Capstone Mining Corp. and Mantos Copper Limited entered into a definitive agreement to combine business to create Capstone Copper Corp., a premier copper producer with transformational near-term growth. Upon completion of the transaction, former Capstone and Mantos shareholders will collectively own 60.75% and 39.25% of Capstone Copper, respectively, on a fully-diluted share basis. (Cozamin mine, Zacatecas).
  • Heliostar Metals Limited announced the appointment of a new member to its Board of Directors (Cumaro project, Sonora).
  • Monumental Minerals Corp., announced the appointment of an advisory board to assist the company with the exploration and drill target definition of its Jemi rare earth elements project in Coahuila. Monumental also appointed a new Director to its Board. The Company also granted 275,000 incentive stock options to advisors at a price of $0.50 per common share for a period of five years.

ON SOCIAL RESPONSIBILITY

  • No relevant news.

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

On the picture above, a piece of core showing a quartz vein with massive chalcopyrite from an epithermal quartz vein system in a current producing mine in Zacatecas, Mexico.  Photo by Miguel A Heredia.

The Mining and Exploration News in Mexico: Highlights on the Second Week of February, 2021.

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Hydrothermal breccia

By Miguel A Heredia

During the second week of the year (February 08th to February 14th, 2021), at least 28 press releases were announced by companies working in Mexico and 11 news published by the media, with nine disclosing deals and corporate issues, six announcing financial rounds, six reporting on resources and development of their mine operations, six commenting on Mexican issues, five informing on exploration results, five discussing social issues, and two communicating production and financial results.  ON MEXICO ISSUES, Environmental, social and corporate governance (ESG) criteria are a key factor in Accendo Banco’s investments in Mexico’s mining sector, according to its CEO, Javier Reyes. Mining in Mexico registered a 19.5% rebound during October, 2020, according to the Monthly Indicator of Industrial Activity by Federal Entity (IMAIEF) released by the Institute National Statistics and Geography (INEGI). Tatiana Clouthier, head of the Secretariat of Economy declared that mining in Mexico must become a sustainable activity that prioritizes three issues: economic, human and nature. The energy policies that the federal government is following are already affecting the development of projects for the self-supply of energy by the mining sector. Experts detailed the main challenges that the Mexican mining sector will face in 2021, the year in which the industry is expected to play a leading role in the economic reactivation after confinements. Almost a year of delay accumulates the USD $60M of Chinese investment to construct the industrial park at Guadalupe, Zacatecas.   ON EXPLORATION, In Sonora, Canuc commenced a drill program at its San Javier project, Carlyle and Riverside initiated a phase one drilling program at its Cecilia project, Tocvan and Colibri reported drill results from its El Pilar project, and Minaurum released results from its phase II drilling program conducted at its Alamo Silver project.   ON MINING, Equinox provided 2021 guidance and outlined growth and investment plan (Los Filos mine, Guerrero). GoGold reported Q4, 2020 production and financial results from its Parral Tailings project in Chihuahua. ON FINANCING, Bacanora announced that 106,995,885 New Ordinary Shares were admitted to trading on London Stock Exchange market (Sonora Lithium project, Sonora). Silver Tiger announced that it entered into a CAD $20M bought deal financing (El Tigre, Sonora). Comet raised $1M in strategic investor placement (Santa Teresa project, Baja California). Orogen announced a private placement for gross proceeds of $2.7M (Ermitaño property, Sonora). Prospero Silver announced a consolidation of its common shares (Pachuca SE property, Hidalgo). SilverCrest entered into a bought deal financing agreement for aggregate gross proceeds of USD $120M (Las Chispas project, Sonora).  ON RESOURCES AND DEVELOPMENT, Bacanora commenced initial site activities at its Sonora Lithium project in Sonora. Excellon provided an update on ongoing exploration at its Platosa mine in Durango. GR Silver released underground and surface drilling results from its Plomosas project in Sinaloa. Newmont reported 2020 mineral reserves and resources for its Peñasquito mine in Zacatecas. Orla filed updated FS on its Camino Rojo Oxide project in Zacatecas. Southern Silver released drill results from its Cerro Las Minitas project in Durango. ON DEALS AND CORPORATE ISSUES, Carlyle announced that it has now met its first-year exploration commitments of its option agreement with Riverside Resources to acquire 100% of the Cecilia Gold-Silver project. Fabled granted an aggregate of 350K stock options to certain consultants, to acquire one common share of Fabled at an exercise price of $0.22 per common share until September 1, 2021 (Santa Maria project, Chihuahua). Fortuna announced management changes (San Jose mine, Oaxaca). Gold Resource announced the appointment of a new member to its Board of Directors (Arista mine, Oaxaca). Gold79announced the appointment of a new member to its Board of Directors and granted him with 500K common shares at a price of $0.10 per share and expire on February 12, 2031 (Taviche project, Oaxaca). Orogen announced that its current President and Chief Executive Officer has been appointed to the Board of Directors (Ermitaño project, Sonora). Premier announced that two independent adviser firms have recommended that holders of Premier´s common shares and options approve the proposed acquisition of Equinox (Mercedes mine, Sonora). Tarachi Gold signed a purchase agreement with Manto Resources to acquire the Magistral del Oro mill and tailings project in Durango. Vizsla announced it will change its name to Vizsla Silver Corp (Panuco project, Sinaloa).  ON SOCIAL RESPONSIBILITY, Coanzamex (GoGold) supported the Municipal Shelter of Parral, Chihuahua with blankets. Fresnillo plc organized literary caravan and delivered books to children from rural communities. Peñoles signed an alliance with the UNAM Foundation so that medical fellows serve the communities near its operating units in Durango, State of Mexico, Guerrero and Zacatecas. Peñoles encourages the presence of women in the areas of science, innovation and technological development. Santa Elena Mine (First Majestic) in connection with the Sonora A.C. Mining Cluster are carrying out a support program for merchants in the Banámichi and Río Sonora region.

ON MEXICO ISSUES

  • Environmental, social and corporate governance (ESG) criteria are a key factor in Accendo Banco’s investments in Mexico’s mining sector, according to its CEO, Javier Reyes. Investment deals recently advanced by the bank include a proposed USD $12M loan to finance construction of Telson Mining’s Tahuehueto gold mine in Durango. Candelaria Mining also signed a USD $9M loan agreement with Accendo in June 2020 for the construction of its Pinos gold project in Zacatecas. Lastly, Accendo signed a strategic alliance with Vancouver-based Empress Royalty in August last year. The agreement aims to acquire royalties, cash flows and other investments in Mexico’s mining sector.
  • Mining in Mexico, registered a 19.5% rebound during October, 2020 according to the Monthly Indicator of Industrial Activity by Federal Entity (IMAIEF), released by the Institute National Statistics and Geography (INEGI).
  • Tatiana Clouthier, head of the Secretariat of Economy declared that mining in Mexico must become a sustainable activity that prioritizes three issues: economic, human and nature. On the other hand, Clouthier highlighted the work that mining companies of all levels have done to accelerate the economic reactivation of the country. “The Gross Domestic Product (GDP) that is generated through mining is about 3.2% and we are pleased to see that these numbers can continue to move in favor of the economy and Mexican families,” she said. “In the Ministry of Economy we have already invited large, medium and small companies and associations that are linked to this issue to be able to find solutions, to be able, within the framework of the law, to activate what we have to activate for this task it can be managed better and it can yield better results in favor of our country”, she assured.
  • The energy policies that the federal government is following are already affecting the development of projects for the self-supply of energy by the mining sector. According to data from the Mexico Mining Chamber (CAMIMEX), electricity for this industry is 33% and up to 350% more expensive compared to other countries, which increases its production costs. That is why the mining companies have decided to invest and develop electricity generation projects, which range from combined cycle plants to solar or wind farms. Despite this, many of these plans have been affected by current policies on energy and the action of regulatory bodies, such as the Energy Regulatory Commission (CRE), which reduced the granting of permits to a minimum. President of CAMIMEX assured in recent days that half of the energy consumed by the mining industry is under the self-supply model.
  • Experts detailed the main challenges that the Mexican mining sector will face in 2021, the year in which the industry is expected to play a leading role in the economic reactivation after confinements. The main problems for the sector are the current health complications associated with the COVID-19 pandemic, a series of directly or indirectly legislative proposals with potential negative impacts on the mining sector such as the direct initiatives to try to raise taxes at the state of federal level or indirect initiatives as the elimination of the outsourcing or initiatives of the electricity industry. Deputies of Mexico received in January a proposal from a legislator of the ruling party Morena aimed at reviewing the fees paid for mining concessions. It proposed replacing per hectare fees with potentially much higher charges linked to production. Another problem is the “profound ignorance” of the importance of the mining industry.
  • Almost a year of delay accumulates the USD $60M of Chinese investment to construct the industrial park at Guadalupe, Zacatecas. This delay has been caused by the COVID-19 pandemic.   

ON EXPLORATION

  • Canuc Resources Corporation, commenced a drill program at its San Javier project. The program will be focused on testing geophysical anomalies and mineralized breccia and stockwork zones as reported previously.
  • Carlyle Commodities Corp. and Riverside Resources Inc., initiated a six drill holes, phase one program at its Cecilia project designed to test down to roughly 250m in depth over the Cerro Magallanes rhyolitic dome. The drill program will commence to test the San Jose structure where sampling returned values up to 48.3 g/t Au over 0.75m at surface.
  • Tocvan Ventures Corp. and Colibri Resource Corporation reported drill results from its phase one drilling program performed at its El Pilar project in Sonora, which consisted of nine RC holes for a total of 1,505m. Significant drill intercepts were encountered in hole JES-20-32 with 1.6 g/t Au over 94.6m, including 10.8 g/t Au and 38 g/t Ag over 9.2m; hole JES-20-33 with 1.1 g/t Au over 41.2m, including 6 g/t Au and 12 g/t Ag over 3.1m; and hole JES-20-36 with 2.5 g/t Au and 73 g/t Ag over 24.4m, including 6.3 g/t Au and 192 g/t Ag over 9.2m, including 33.4 g/t Au and 1,090 g/t Ag over 1.5m.
  • Minaurum Gold Inc., released results from its phase II drilling program conducted at its Alamo Silver project. “Drilling at the Europa-Guadalupe target outlined a prospective south-west (“SW”) plunging silver shoot along with the potential for additional high-grade mineralization to the north and south of the area drilled. At the Promontorio target, drilling returned high-grade mineralization in excess of 100m below historical workings, indicating the potential for two SW-plunging silver shoots”. At Europa-Guadalupe Zone, Significant drill intercepts were encountered in hole AL20-054 with 342 g/t Ag, 0.76% Cu, and 1% Zn over 3.85m, including 1,185 g/t Ag, 2.19% Cu, and 1.2% Zn over 0.8m; and hole AL20-050 with 196 g/t Ag, 0.26% Cu, 0.35% Pb, and 1.1% Zn over 3.25m, including 784 g/t Ag, 1.05% Cu, and 2.5% Zn over 0.55m. At Promontorio Zone, hole AL20-064 intersected 528 g/t Ag, 0.8 g/t Au, 0.83% Cu, 2.4% Pb, and 1.5% Zn over 3.7m, including 1,203 g/t Ag, 2.45 g/t Au, 1.4% Cu, 5.1% Pb, and 2.8% Zn over 1.05m; and hole AL20-069 with 161 g/t Ag, 0.5 g/t Au, 0.24% Cu, 2.15% Pb, and 5.9% Zn over 4m, including 327 g/t Ag, 0.9 g/t Au, 0.23% Cu, 2.5% Pb, and 6.6% Zn over 1m. At San Jose Zone, hole AL20-066 encountered 314 g/t Ag, 0.27% Cu, 0.2% Pb, and 0.2% Zn over 4.45m, and hole AL20-075 with 460 g/t Ag, 0.15% Cu, 0.5% Pb, and 0.85% Zn over 2.15m. At Travesia Zone, hole AL20-077 intersected  210 g/t Ag, 0.59% Cu, 1.3% Pb, and 1.3% Zn over 4.4m, including 355 g/t Ag, 0.7 g/t Au, 1.02% Cu, 4.6% Pb, and 3.2% Zn over 0.9m.

ON MINING

  • Equinox Gold Corp., provided 2021 guidance and outlined growth and investment plan. It expects to produce 170K-190K Oz Au from its Los Filos mine in Guerrero at cash and AISC of USD $1,125-1,200 and USD $1,330-1,390 respectively. The company has planned a total sustaining and non-sustaining capital spend of USD $133M for the year.
  • GoGold Resources Inc., reported Q4, 2020 production and financial results from its Parral Tailings project in Chihuahua. The company produced 298.6KOz Ag, 3,632 Oz Au and 280K Lb Cu (614.15K Oz AgEq) at cash and AISC of USD $12.27 and USD $15.19 per Oz Ag sold. GoGold reported revenue of USD $14,078M, a net income of USD $4.23M, and a cash flow from operation of USD $5.86M.  

ON FINANCING

  • Bacanora Lithium plc., announced that 106,995,885 New Ordinary Shares were admitted to trading on the London Stock Exchange market (Sonora Lithium project, Sonora).
  • Silver Tiger Metals Inc., announced that it entered into a CAD $20M bought deal financing with Sprott Capital Partners LP.  Net proceeds will be used to fund continued exploration at its El Tigre project in Sonora, as well as for general working capital and business development purposes.
  • Comet Resources Ltd., announced that it raised $1M in strategic investor placement. Part of the raised funds will be used to support exploration activities at its (Santa Teresa project in Baja California.
  • Orogen Royalties Inc., announced a private placement for gross proceeds of $2.7M (Ermitaño property, Sonora).
  • Prospero Silver Corp., announced a consolidation of its common shares on the basis of one new post-consolidation common share for every three pre-consolidation common shares effective as of February 11, 2021.  There will be no name change or trading symbol change in conjunction with the consolidation (Pachuca SE property, Hidalgo).
  • SilverCrest Metals Inc., entered into a bought deal financing agreement for aggregate gross proceeds of USD $120M. Net proceeds of the offering will be used to expand resources and reserves at its Las Chispas project in Sonora through further drilling, to optimize the mine and processing plant design, to explore regional targets, and for general working capital purposes. 

ON RESOURCES AND DEVELOPMENT

  • Bacanora Lithium plc., commenced initial site activities at its Sonora Lithium project in Sonora. Bacanora engaged a local specialist ecological service company to rescue and remove surface vegetation and topsoil in the area proposed for the construction of the processing plant. The company is also upgrading the main access road for providing access to heavy equipment to commence the bulk site earthworks later in the year.
  • Excellon Resources Inc., provided an update on ongoing exploration at its Platosa mine in Durango. The company is drilling regional targets such as Jaboncillo and the PDN areas, as well as drilling the Platosa extensions and Platosa Underground to support resource definition and expansion. At Jaboncillo zone, located 11 km north of Platosa mine, Excellon identified in a previous drilling campaign a 1.2km length gossans mineralization.  The current drilling program is targeting the source of these gossans and the existence of massive sulphides. At PDN zone, located 2 km north of Platosa mine, it is testing a large 800m by 60m target generated with multiple sets of geophysical data, surface mapping and sampling. This target is interpreted as a deeper skarn related to the Rincon del Caido  skarn discovered in 2012 where a previous drill intercept encountered 132 g/t Ag, 3.1% Pb, 1.7% Zn, and 0.075 g/t Au (278 g/t AgEq) over 55.5m. At the 10-20 target, the company has been conducting drilling surface to add mineralization over approximately 300m of strike with a vertical extent of 30-40m. This zone has potential to significantly increase the current 800m by 600m mineralized footprint of the Platosa mine.  At Platosa mine, Excellon is conducting underground drilling to define mineralization ahead of mine development and add mineralized inventory in areas not adequately tested by surface drilling. This underground drilling program follows up on previous drilling of the Pierna and NE-1 mantos and depth extensions of the 623 and NE-1S mantos.
  • GR Silver Mining Ltd., released underground and surface drilling results from its Plomosas project in Sinaloa. Significant mineralization was encountered in hole PLI-20-05 with 2.63 g/t Au, 39 g/t Ag, 0.2% Cu, 0.2% Pb, and 0.1% Zn over 4m, including 8.95 g/t Au, 136 g/t Ag,0.4% Cu,  0.6% Pb, and 0.1% Zn (1,101 g/t AgEq) over 1.0m, and other deeper intersection of 2.77 g/t Au, 25 g/t Ag, 0.2% Cu, 0.2% Pb, and 0.6% Zn over 9.2m, including 19.95 g/t Au, 227 g/t Ag, 1% Cu, 1.3% Pb, and 4.7% Zn (2,507 g/t AgEq) over 0.20m; and hole PLI17-32 with 1.37 g/t Au, 68 g/t Ag, 0.1% Cu, 0.4% Pb, and 0.1% Zn (245 g/t AgEq) over 10.6m. “The underground drilling program is targeting high-grade Ag-Au epithermal mineralization and bulk tonnage-style polymetallic mineralization in the Plomosas Mine Area, with the objective to delineate high margin precious and base metals mineralization for planned resource estimation”.
  • Newmont Corporation reported 2020 mineral reserves and resources for its Peñasquito and Noche Buena mines. Figures are shown in the tables below:

(Resources are reported exclusive of reserves)

  • Orla Mining Ltd., filed updated FS on its Camino Rojo Oxide project in Zacatecas. Highlights include a total ore to leach pad of 67.4M tonnes of 0.73 g/t Au and 14 g/t Ag for a total of 1.59M Oz Au and 31.5M Oz Ag at metallurgical recoveries of 62% and 20% respectively to recover 980K Oz Au and 6.19M Oz Ag. The mine life of Camino Rojo has been estimated in 10.4 years with a throughput rate of 18,000 tonnes per day for an annual production of 94K Oz Au, at a cash and AISC cost of USD $490 and USD $543 per Oz Au respectively. The FS reported a Pre-Tax and NVP (5% discount rate)  of USD $668M, Pre-Tax IRR of 82%, an After-Tax and NVP (5% discount rate) of USD $542M,and an After-Tax IRR of %62%, for a payback time of 1.5 years.
  • Southern Silver Exploration Corp., released drill results from its Cerro Las Minitas project in Durango. The company intersected bonanza grades at La Bocona Chimney in hole 20CLM-131 with 1,072 g/t Ag, 18.8% Pb, and 7.5% Zn (2,040 g/t AgEq or 51.7% ZnEq) over a true width (TW) of 8m, which includes subintervals of 3,180 g/t Ag, 58.8% Pb, and 2.3% Zn over a TW of 0.6m, and 2,340 g/t Ag, 35.9% Pb, and 1.6% Zn over a TW of 0.8m. Additional mineralized intervals intersected further down-hole include 121 g/t Ag, 2.5% Pb, and 2.5% Zn (311 g/t AgEq or 7.9% ZnEq) over a TW of 8.5m, including 413 g/t Ag, 8.7% Pb, and 9.3% Zn (1,103 g/t AgEq or 28% ZnEq) over a TW of 1.6m, including 59 g/t Ag, 0.6 g/t Au, an 3.7% Cu (489 g/t AgEq) over a TW of 0.5m. Additional assays results were also received from the Muralla and the South Skarn targets located 500m away of the Mina La Bocona. Significant drill intercepts were encountered in hole 20CLM-134 with 205 g/t Ag, 0.16 g/t Au, 4% Pb, and 0.9% Zn (377 g/t AgEq or 9.5% ZnEq) over a TW of 4.1m, including 575 g/t Ag, 0.05 g/t Au, 9.9% Pb, and 2.2% Zn (972 g/t AgEq or 24.7% ZnEq) over a TW of 0.6m in the Muralla target; hole 20CLM-126 with 95 g/t Ag, 0.7% Pb, and 1.2% Zn (174 g/t AgEq or 4.4% ZnEq), including 398 g/t Ag, 0.16 g/t Au, 2.7% Pb, and 4% Zn (679 g/t AgEq or 17.2% ZnEq) over a TW of 0.7min the South Target Zone, and hole 20CLM-130 with 327 g/t Ag, 5.6% Pb, and 11.5% Zn (960 g/t AgEq or 24.4% ZnEq) over a TW of 1m in the South Target Zone.

ON DEALS AND CORPORATE ISSUES

  • Carlyle Commodities Corp., announced that it has now met its first-year exploration commitments of its Option Agreement with Riverside Resources to acquire 100% of the Cecilia Gold-Silver project, by having advanced at least CAD $750K for exploration expenditures.
  • Fabled Silver Gold Corp., granted an aggregate of 350K stock options to certain consultants, to acquire one common share of Fabled at an exercise price of $0.22 per common share until September 1, 2021 (Santa Maria project, Chihuahua).
  • Fortuna Silver Mines Inc., announced the resignation of its Director and Chair of the Board, and the appointment of its replacement (San Jose mine, Oaxaca).
  • Gold Resource Corporation announced the appointment of a new member to its Board of Directors (Arista mine, Oaxaca).
  • Gold79 Mines Ltd., announced the appointment of a new member to its Board of Directors and granted him 500K common shares at a price of $0.10 per share and expires on February 12, 2031 (Taviche project, Oaxaca).
  • Orogen Royalties Inc., announced that its current President and Chief Executive Officer has been appointed to the Board of Directors (Ermitaño project, Sonora).
  • Premier Gold Mines Limited announced that two independent adviser firms have recommended that holders of Premier´s common shares and options approve the proposed acquisition of Equinox Gold Corp. (Mercedes mine, Sonora). 
  • Tarachi Gold Corp., signed a purchase agreement with Manto Resources SA de CV to acquire the Magistral del Oro mill and tailings project in Durango.  Magistral project consists of a 1,000 tons per day (TPD) Merrill-Crow tailings reprocessing  plant and tailing disposal facility, and access to an estimated 1.3M tonnes of tailings with a historic average grade of between 2.06 g/t Au and 2.11 g/t Au. In order to acquire the property, Tarachi has to issue 4M of its common shares, grant Manto with a 15% net profits royalty on the estimated 1.3M tonnes of tailings material expected to be processed and reimburse Manto for USD $1,179,500 of cash outlays, and will satisfy certain obligations of Manto by paying a total of USD $1,111,000 plus any Mexican value add tax (IVA) and issuing 1,685,916 common shares within 90 days of closing. Manto will be entitled to the following staged bonus payments: an additional 4M common shares 60 days after the closing date, 4M common shares 180 days after the closing date, 4M of common shares 365 days after the closing date, USD $500K in cash following 6 months of commercial production at Magistral, USD $500K in cash following 12 months of commercial production at Magistral, upon the company earning USD $15M in revenue from Magistral, the company will pay Manto USD $1M. Finally, a finder´s fee of 1M common shares will be issued to Spirit Exploration Corp.
  • Vizsla Resources Corp., announced it will change its name to Vizsla Silver Corp. The name change is expected to be effective on February 9, 2021 (Panuco project, Sinaloa). 

ON SOCIAL RESPONSIBILITY

  • Coanzamex (GoGold Resources Inc.) delivered blankets to the Parral Municipality Shelter. Major of Parral thanked the spirit of solidarity that has characterized the mining company that has operated in Parral, Chihuahua for several years.
  • Fresnillo plc organized literary caravan and delivered 10,000 books to children and adolescents from 23 communities in Caborca, Sonora.  It should be mentioned that Fresnillo plc, in alliance with the IBBY México organization, encourages children’s reading through the “Picando Letras” program, which has been implemented for some time more than 8 years and, to date, approximately more than 2,500 infants and adolescents have participated in the various actions.
  • Industrias Peñoles SAB de CV signed an alliance with the UNAM Foundation so that medical fellows serve the communities near its operating units Durango, State of Mexico, Guerrero and Zacatecas. For more than 10 years, Peñoles has carried out Health Days to the communities near its operations, to provide free medical care to its neighbors. To give continuity to preventive health programs among the population with fewer resources, Peñoles ratified an agreement with the UNAM Foundation whereby eight social service providers of the University will provide medical care to the communities surrounding the Velardeña, Sabinas, Tizapa, and Capela mines.
  • Industrias Peñoles SAB de CV encourages the presence of women in the areas of science, innovation and technological development. Its General Director, Rafael Rebollar, points out that, fortunately, more women are joining the different mining processes, contributing their talent and skills. The Central Laboratory and the Center for Research and Technological Development (CIDT) of Peñoles stand out, with 35 women who carry out functions key to mining and metallurgical processes. Thus, Peñoles reiterates its commitment to society by integrating more women scientists in the industry, through programs that expand their knowledge and allow them to innovate in the processes, which contributes to strengthening the activity mining and make it more sustainable.
  • Santa Elena Mine (First Majestic) in connection with the Sonora A.C. Mining Cluster are carrying out a support program for local merchants in the Banámichi and Río Sonora region. Through a workshop, they seek to provide the necessary tools to promote the economic reactivation of businesses and overcome the barriers of the pandemic using new digital marketing tool to offer its products and services. This training was offered in virtual mode where the last session was completed in person, ending with the delivery of recognitions to the participants.

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 quartz hydrothermal breccia in a low sulphidation epithermal system in a prospect in Durango, Mexico.  Photo by Miguel A Heredia., Mexico.

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

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Fault slickenside

By Miguel A Heredia

During the fifty one week of the year (December 14th to December 20th, 2020), at least 22 press releases were announced by companies working in Mexico and 4 news published by the media, with seven disclosing deals and corporate issues, five communicating production and financial results, four informing on exploration results, three announcing financial rounds, two discussing social issues, two reporting on resources and development of their mine operations, and two  commenting on Mexican issues.  ON MEXICO ISSUES, Great Panther restarted operations at its Topia mine in Durango, after experiencing contagious of COVID-19 among the workforce. The Chihuahua Mining Cluster appointed its new board president. The Association of Miners of Sonora (AMSAC) decided to extend the current board for one year.  ON EXPLORATION, In Baja California Norte, Comet announced that a drilling program will commence in 2021 at its Santa Teresa project. In Sonora, Silver Viper released drill results from its El Rubi project. In Chihuahua, Monarca Minerals announced its intention to conduct an initial 5,000m of drilling at its San Jose project. In Sinaloa, Vizsla released surface and underground sampling results from its Panuco project. ON MINING, GoGold presented Q3, 2020 production and financial results from its Parral Tailing operation in Chihuahua. Prime reported Q2, 2020 financial results. ON FINANCING, Silver Dollar granted stock options to its directors, officers, and consultants (La Joya property, Durango). Gatos Silver provided an update and announced inclusion in the Russell 2000 Index, as well as in the VanEck Vectors Junior Gold Miners ETF (GDXJ) (Los Gatos, Chihuahua).  ON RESOURCES AND DEVELOPMENT, Southern Silver reported drill results from its Cerro Las Minitas property in Durango. Capitan Mining released RC drill results from three holes collared at its Peñoles project in Durango. Gatos Silver commenced a 58,000m infill and extensional drilling program at its Cerro Los Gatos deposit in Chihuahua. GR reported drill results from 2 holes collared at its Plomosas property in Sinaloa. Fabled started an 8,000m drilling program at its Santa Maria project in Chihuahua. ON DEALS AND CORPORATE ISSUES, Aztec Minerals and Kootenay entered into a JV option agreement for the Cervantes project in Sonora. Defiance acquired option to purchase royalty at the Tepal property in Michoacan. Pan American appointed a new member to its board of directors (La Colorada, Zacatecas). Equinox announced friendly acquisition of Premier Gold (Mercedes Mine, Sonora). Canuc appointed a new special adviser to the company (San Javier property, Sonora). Santacruz reached an agreement with Peñoles to extend the Zimapan Mine lease until June 30, 2021.   ON SOCIAL RESPONSIBILITY, Minera Media Luna, a subsidiary of Torex Gold invested MXP $1.8M to improve the Nuevo Balsas Health Center. Grupo Mexico donated eight thousand plants in Colima.

ON MEXICO ISSUES

  • Great Panther Mining Limited, restarted operations at its Topia mine in Durango, after have experienced contagious of COVID-19 among the workforce. Mining resumed on December 17 and the plant is expected to begin processing ore on December 21.
  • The Chihuahua Mining Cluster appointed its new board president. This event was joined by the special presence of the state leadership of the Association of Mining Engineers, Metallurgists and Geologists of Mexico; the direction of the Mining Chamber of Mexico; guild suppliers, as well as the new director of mining for the state government.
  • The Association of Miners of Sonora (AMSAC) decided to extend the current board for one year as a result of the pandemic that paralyzed multiple activities in the sector.

ON EXPLORATION

  • Comet Resources Limited announced that a drilling program will commence in 2021 at its Santa Teresa project in Baja California Norte. Comet has identified sources of water for the drilling program and has improved roads to the drill sites. It is also in the process of getting the drill permit to commence the drilling in 2021. In addition, Comet has engaged a local geological consultancy to assist them with all geological programs, including permitting for drilling.
  • Silver Viper Minerals Corp., released drill results from its El Rubi project in Sonora. The most significant drill interval was encountered in hole LV20-283 with 0.72 g/t Au and 50 g/t Ag over a true width (TW) of 13.89m, including several intersection as 2.55 g/t Au and 226 g/t Ag over a TW of 0.64m, 3.26 g/t Au and 215 g/t Ag over a TW of 1.92m, 1.58 g/t Au and 108 g/t Ag over a TW of 3.84m, 4.38 g/t Au and 282 g/t Ag over a TW of 0.64m, 33.8 g/t Au and 67 g/t Ag over a TW of 1.6m, and 77.9 g/t Au and 133 g/t Ag over a TW of 1m. Silver Viper informed also that it has conducted initial bottle roll leach tests on four 500 g composites of mineralized material from El Rubi with extracting recoveries of 90-95% for Au and 62-76% for Ag. The company plans to conduct more detail test work.
  • Monarca Minerals Inc., announced its intention to conduct an initial 5,000m of drilling at its San Jose project in Chihuahua. Monarca plans to drill 10 holes to test some IP targets to depths of up to 500m. Monarca is looking to sign a surface agreement with the local Ejido as well as to apply to obtain the drilling permit.
  • Vizsla Resources Corp., released surface and underground sampling results from its Panuco project. Sampling highlights include 11.55 g/t Au and 2,091 g/t Ag (3,042 g/t AgEq) over a true width (TW) of 1m, and 6.7 g/t Au and 723 g/t Ag (1,304 g/t AgEq) over a TW of 1.2m at Agua Zarca target; 2.23 g/t Au and 264 g/t Ag (456 g/t AgEq) over a TW of 2.9 at El Batel target; 0.77 g/t Au and 315 g/t Ag (368 g/t AgEq) over a TW of 4.1m, including 1.28 g/t Au and 892 g/t Ag (958 g/t AgEq) over a TW of 1.3m at La Bomba target; and 0.67 g/t Au and 225 g/t Ag (275 g/t AgEq) over a TW of 10.5m, including 1.34 g/t Au and 371 g/t Ag (473 g/t AgEq) over a TW of 4m at Huaco target. These results will help to generate drill targets for 2021.

ON MINING

  • GoGold Resources Inc., presented Q3, 2020 production and financial results from its Parral Tailing operation in Chihuahua. The company produced 605,723 Oz AgEq at a cash and AISC of USD $11.97 and USD $14.31 per Oz AgEq respectively. GoGold reported revenue of USD $39.5M, a net income of USD $43.1M, and cash flow from operations before working capital changes of  USD $5.5M, including free cash flow from Parral of USD $6.5M.
  • Prime Mining Corp., announced Q2, 2020 financial results.   The company reported a net loss of CAD $1,656,466, cash, cash equivalent and short-term investment of CAD $7,678,959, total current liabilities of CAD $655,545, total liabilities of CAD $1,668,247, and total shareholder´s equity of CAD $19,921,788 (Los Reyes project, Sinaloa).

ON FINANCING

  • Silver Dollar Resources Inc., granted stock options to its directors, officers, and consultants to purchase up to 2.55M shares of the company. Shares are exercisable at $1.75 per share for five years (La Joya property, Durango).
  • Gatos Silver Inc., provided an update and announced inclusion in the Russell 2000 Index small capitalization stocks index, effective December 2021. Gatos recently completed an IPO with gross proceeds of USD $173M resulting in the largest precious metals IPO since 2010 and the largest precious metals equity financing during 2020. The company also announced the inclusion in the VanEck Vectors Junior Gold Miners ETF (GDXJ) (Los Gatos property, Chihuahua). 

ON RESOURCES AND DEVELOPMENT

  • Southern Silver Exploration Corp., reported drill results from Mina La Bocona target area at its Cerro Las Minitas property in Durango. Significant drill intersects were encountered at hole 20CLM-125 with 1.41 g/t Au and 36 g/t Ag (201 g/t AgEq) over a 28.5m, including 5.1 g/t Au and 72 g/t Ag (552 g/t AgEq) over 2.8m, and a deeper intersection of 0.45 g/t Au, 421 g/t Ag, 5.5% Pb, and 1.9% Zn (704 g/t AgEq or 17.9% ZnEq) over 6.1m (true width of 4.0m), including 0.64 g/t Au, 1,420 g/t Ag, 16.8% Pb, and 00.6% Zn (2,012 g/t AgEq or 51% ZnEq) over 0.9m (true width of 0.6m). This drill result is part of a 10,000m, 2020-2021 core drilling program on the Cerro Las Minitas project. Two additional holes have been completed at Mina La Bocona target. Seven holes totaling 2,470 metres have now tested the Mina La Bocona target area with assays still pending from each hole.
  • Capitan Mining Inc., released drill results from three holes collared at its Peñoles project in Durango. Significant drill intercepts were encountered in holes 20-CARC-12 with 0.63 g/t Au over 73.15m, including 0.91 g/t Au over 36.5m; hole 20-CARC-09 with 0.69 g/t Au and 21 g/t Ag over 64.01m, including 1.26 g/t Au over 13.72m; and hole 20-CARC-08 with 0.58 g/t Au over 48.77m, including 0.82 g/t Au and 16 g/t Ag over 28.96m.
  • Gatos Silver Inc., commenced a 58,000m infill and extensional drilling program at its Cerro Los Gatos deposit in Chihuahua. The program is expected to cost USD $6.1M. Drilling has already begun with a program of 27,000m with an expected cost of USD $2.8M and is focused on definition and extension of the Cerro Los Gatos deposit. Completion of the program is anticipated by June 2021. A second program focused on expanding resources throughout the Los Gatos district is planned to initiate in early 2021.
  • GR Silver Mining Ltd., reported drill results from 2 underground holes collared at its Plomosas property in Sinaloa. Hole PLI20-01 intersected 30 g/t Ag, 0.01 g/t Au, 1.3% Pb, and 2.8% Zn (254 g/t AgEq) over a true width (TW) of 16m, including 55 g/t Ag, 0.01 g/t Au, 4% Pb, and 8.3% Zn (424 g/t AgEq) over a TW of 4m; and hole PLI20-02 intersected 18 g/t Ag, 0.3 g/t Au, 1% Pb, and 1.7% Zn (130 g/t AgEq), including 107 g/t Ag, 1.7 g/t Au, 6.6% Pb, 9.6% Zn, and 0.2% Cu (778 g/t AgEq) over a TW of 4.2m. GR also reviewed and validated historical data from holes SD-62 and SD-67, confirming the presence of Au-Cu rich mineralization in other levels of the Plomosas Mine area. Hole SD-62 encountered  31 g/t Ag, 0.12 g/t Au, 0.8% Pb, 1.4% Zn, and 1.3% Cu (200 g/t AgEq) over a TW of 25.3m, while hole SD-63 intersected 115 g/t Ag, 1.04 g/t Au, 11.3% Pb, 5.4% Zn, and 0.7% Cu (800 g/t AgEq) over a TW of 6.1m.
  • Fabled Silver Gold Corp., started an 8,000m drilling program at its Santa Maria project in Chihuahua to test 11 new IP anomalies identified during the first ever geophysical survey conducted at the property. A 3-D IP survey covered the entire property at 50m-line spacing and was 16 blocks in size with penetration to -500m minimum. In addition, 27km of ground magnetic was completed over the property resulting in the creation of several products such as total field, first derivate, reduce to pole, and 3D inversion magnetics.  “Fabled’s management team strongly believes that the Santa Maria Property is an under-explored, high-grade silver-gold project with significant exploration potential to expand mineral resources and identify new discoveries”. 

ON DEALS AND CORPORATE ISSUES

  • Aztec Minerals Corp., and Kootenay Silver Inc., entered into a JV option agreement for the Cervantes project in Sonora. Aztec has already completed its earn-in and exercised its option to acquire a 65% interest in the property. Now Aztec hold 65% interest in the property while Kootenay the remaining 35%. Both parties will keep their interest at Cervantes through share ownership in Aztec Minerals JV Corporation through its wholly owned subsidiary, Minera Azteca Dorado S.A. de C.V.
  • Defiance Silver Corp., acquired option to purchase the 2.5% NSR of the Tepal property in Michoacan from Minera Tepal, over four years for a total consideration of USD $4.85M.
  • Pan American Silver Corp., appointed a new member to its board of directors (La Colorada, Zacatecas).
  • Equinox Gold Corp., announced it has entered into a definitive agreement with Premier Gold Mines Limited to acquire all of the outstanding shares of Premier. Premier will spin-out to its shareholders shares of a newly created US-focused gold production and development company to be called i-80 Gold Corp. On closing of the transaction, existing Equinox Gold and Premier shareholders will own approximately 84% and 16% of Equinox Gold, and Equinox Gold and existing shareholders of Premier will own 30% and 70% of i-80 Gold, respectively, on an issued share basis.
  • Canuc Resources Corporation appointed a new special adviser to the company (San Javier property, Sonora). 
  • Santacruz Silver Mining Ltd., reached an agreement with Minera Cedros S.A.de C.V., a subsidiary of Industrias Peñoles S.A.B. de C.V. to extend the Zimapan Mine lease from December 31, 2020 to June 30, 2021.

ON SOCIAL RESPONSIBILITY

  • Minera Media Luna, a subsidiary of Torex Gold invested MXP $1.8M to improve the Nuevo Balsas Health Center, which will serve close to four thousand inhabitants of communities such as Nuevo Balsas, San Nicolás, La Fundición, Real del Limón, Acalmantlila, Balsas Sur, San Luis and Tomixtlahuacán. This center seeks to provide decent medical care since the areas that are farthest from the municipal capitals are severely affected in their health services due to the conditions of difficult access and remoteness.
  • Grupo Mexico donated eight thousand plants to the City Council and to the  Integral Development of the Family (DIF) of Colima to reforest the public gardens of the rural communities contributing to improve the environment and quality of life of the families of the municipality of Colima.

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

On the picture above, a fault slickenside in a Mn-Fe occurrence 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, 2020.

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Quartz blade (boiling texture)

By Miguel A Heredia

During the fifty eight week of the year (November 30th to December 06th, 2020), at least 25 press releases were announced by companies working in Mexico and 7 news published by the media, with fourteen disclosing deals and corporate issues, six informing on exploration results, four discussing social issues, three reporting on resources and development of their mine operations, three commenting on Mexican issues, and two communicating production and financial results.  ON MEXICO ISSUES, Fernando Alanis, President of The Mexican Mining Chamber (CAMIMEX) declared that mining is one of the most regulated sectors that care for the environment.  There is a great hope to reactivate the economy of Naica, Chihuahua.  Newmont Corporation, operator of the Peñasquito mine in Zacatecas, reported to the Ministry of the Interior the progress of the definitive agreement to end the conflict with ejidatarios.   ON EXPLORATION, In Sonora, Tocvan and its JV partner Colibri announced the commencement of a 1,500m RC drilling program at its El Pilar project and Tarachi released drill results from its la Dura mine. In Chihuahua, Golden Minerals reported that it has completed a 3,400m drilling program in 15 drill holes at its Yoquivo project. In Sinaloa, Prismo has commenced a 500m drilling program at its Palos Verdes project. In Durango, Mithril provided an update on the drilling activities carried out at its Copalquin project.  ON MINING, Mexus announced that leaching commenced at its 250,000 tonnes leach pad at its Santa Elena mine in Sonora. Santacruz announced Q3, 2020 financial results from its Mexican operations.  ON FINANCING, no relevant information.  ON RESOURCES AND DEVELOPMENT, Capitan Mining released RC drill results from the first seven holes collared at its Peñoles project in Durango, expanding the known gold mineralization. Endeavour intersected high grade mineralization at its Bolañitos mine in Guanajuato. VanGold reported underground channel sampling results from its Pinguico mine in Guanajuato, with assays up to 1,136 g/t AgEq.  ON DEALS AND CORPORATE ISSUES, Almaden announced that the court decision upholded the original, 14,000 Ha larger concessions, which the Company originally held at its Ixtaca project in Puebla. Auxico announced the resignation of one of its directors and the appointment of a new member to its board of directors (Zamora property, Sinaloa). Barksdale announced that its common shares commenced to trade on the OTCQX best market in the USA under the symbols “BRKCF” (San Javier project, Sonora). Defiance announced that it has entered into an option agreement with Pan American Silver to acquire 100% interest in the Lucita property in Zacatecas. Fabled closed its previously announced acquisition of the Santa Maria mine in Chihuahua. Fortuna Silver provided and update on the status on a dispute royalty on one of its extracting mining concessions at its San Jose mine in Oaxaca. Magna Gold announced the change of its fiscal year-end from March 31 to December 31 (San Francisco mine, Sonora).  Orex announced management changes (Sandra-Escobar project, Durango).  Orla Mining appointed a new member to its board of directors (Camino Rojo project, Zacatecas). Prismo announced that it has entered into an option agreement to acquire the remaining 25% interest in the Palos Verdes property in Sinaloa. Silver Spruce signed a definitive agreement to acquire 50% interest in the Jackie property in Sonora. Tarachi announced the appointment of its new CFO and its Corporate Secretary (La Dura mine, Sonora). Vizsla appointed its new CFO (Panuco project, Sinaloa). ON SOCIAL RESPONSIBILITY, The Sonora Mining Cluster recognized 40 partners for their commitment to Corporate Social Responsibility (CSR), during the closing of the MINNOVACIÓN 2020 Forum. Fresnillo plc donated 30,000 face masks to the Zacatecas State Government.  Newmont Peñasquito delivered pantries and cleaning kits in localities of Mazapil. The mining sector in Mexico has supported efforts to alleviate the effects of the COVID-19 pandemic.

ON MEXICO ISSUES

  • Fernando Alanis, President of The Mexican Mining Chamber (CAMIMEX) declared that mining is one of the most regulated sectors that cares for the environment. The mining sector makes strong investments to promote social development at its communities, invests in environmental issues and is one of the main producers of trees and reforestation. Mining complies with 1,077 federal, state and municipal requirements in compliance with standards, laws and regulations.
  • Economy in Naica, Chihuahua could be reactivated since there has already been a proposal acceptable by members of the Naica Ejido and the Peñoles Mining Company for the extraction of water for agricultural use, and in turn the company will start with the exploration works contemplating a possible opening of the mine. For now, the hiring of 40 people is contemplated to work in the mine, and the ejidatarios will start fallow work.
  • Newmont Corporation, operator of the Peñasquito mine in Zacatecas, reported to the Ministry of the Interior the progress of the definitive agreement to end the conflict with ejidatarios.  The company reported that 95% of the ejidatarios have received a payment for the rental of lands for exploration. It also confirmed that a permit was obtained from the National Water Commission (CONAGUA) for the drilling of a domestic water well, which will benefit Ejido Cedros.

ON EXPLORATION

  • Tocvan Ventures Corp., and its JV partner Colibri Resource Corp., announced the commencement of a 1,500m RC drilling program at its El Pilar project.  This RC drilling has been designed to confirm selected historical drilling and extend mineralization in the Main Zone along strike. It also will provide information to better define drill targets to test deeper mineralization based on geophysical results and structural interpretations.
  • Tarachi Gold Corp., released drill results from its la Dura mine in Sonora. Significant results were encountered in hole JAB-20-06 with 3.95g/t Au over 8m (from 2.25m to 10.25m),  5.05 g/t Au over 200.75m (from 22.25m to 43m), including 14.5g/t Au over 6.10m (from 27.65m to 33.75m).
  • Golden Minerals Company, reported that it has completed a 3,400m drilling program in 15 drill holes at its Yoquivo project to test the Pertenencia, San Francisco and Esperanza vein systems. Drilling results will be announced within the next few months.
  • Prismo Metals Inc., announced the commencement of a 500m drill program at its Palos Verdes property in Sinaloa. The program will consists of four to five holes, with the longest planned at 150-175m to test the vein lateral to, and below, high-grade intercepts drilled in the past. The best intercept from that program was 8.4 g/t Au and 2,336 g/t Ag, over 0.8m true width.
  • Mithril Resources Ltd., provided an update on the drilling activities carried out at its Copalquin project. Recent drill results from El Refugio target with 15-30m quartz breccia zones indicate the top of a large hydrothermal system at El Cometa project, characterized by extensive surface alteration and rhyolite dome intrusions. This alteration is observed to extend at least 1.5km west of El Refugio in addition to the widespread alteration and rhyolitic dome intrusives in the Copalquin district. The drilling at the El Refugio target now extends for over 300m with highlights including  hole CDH-022 with 1.93 g/t Au and 124 g/t Ag (3.48 g/t AuEq) over 5.05m, including 3.28 g/t Au and 140 g/t Ag (5.03 g/t AuEq) over 2.15m; hole CDH-024 with 1.59 g/t Au and 37 g/t Ag (2.05 g/t AuEq) over 15.75m, including 3.27 g/t Au and 53 g/t Ag (3.93 g/t AuEq) over 5.93m, and  14.75 g/t Au and 150 g/t Ag (16.63 g/t AuEq) over 1m; and hole CDH-025 with 0.8 g/t Au and 34 g/t Ag (1.22 g/t AuEq) over 7m, including 1.81 g/t Au and 70 g/t Ag (2.68 g/t AuEq) over 2m (within 27.55m of 0.41 g/t Au and 20 g/t Ag, or 0.66 g/t AuEq).

ON MINING

  • Mexus Gold US, announced that leaching commenced at its 250,000 tonnes leach pad at its Santa Elena mine in Sonora. Mineralized material is under way and returning values of 0.32 to 0.42 g/t Au in solution. Flows are expected to reach 0.6 g/t Au in solution by December 16th. Mexus CEO added that gold production by year end should reach 225 Oz.
  • Santacruz Silver Mining Ltd., announced Q3, 2020 production and financial results from its Mexican operations. At Zimapan mine, Hidalgo, the company processed 164,846 tonnes to produce 920,985 Oz AgEq at a cash and AISC of USD $17.45 and USD $18.54 per Oz AgEq respectively. At the Rosario project, San Luis Potosi, it processed 11,794 tonnes to produce 56,693 Oz AgEq at cash and AISC of USD $34.13 and USD $42.07 per Oz AgEq respectively. Santacruz reported revenue of USD $9.44M, gross profit of USD $1.26M, a net loss of USD $163K, and an EBITDA of USD $12K.

ON FINANCING

  • No relevant information.

ON RESOURCES AND DEVELOPMENT

  • Capitan Mining Inc., released drill results from the first seven holes collared at its Peñoles project in Durango. Significant drill intercepts were encountered in holes 20-CARC-06 with 0.34 g/t Au over 111.30m, including 0.63 g/t Au over 45.7m; hole 20-CARC-05 with 0.41 g/t Au and 21 g/t Ag over 76.2m, including 0.68 g/t Au and 28 g/t Ag over 16.8m; hole 20-CARC-03 with 0.4 g/t Au and 11 g/t Ag over 68.6m, including 0.74 g/t Au and 16 g/t Ag over 16.8m;  and hole 20-CARC-02 with 0.4 g/t Au and 26 g/t Ag over 56m, including 0.53 g/t Au over 25.9m. The drill results expand the known gold mineralization reported in the mineral resource estimate released in March, 2015 within the conceptual, open pit shell, and confirm that there is significant room to expand the existing oxide resource.
  • Endeavour Silver Corp., intersected high grade gold-silver mineralization at its Bolañitos mine in Guanajuato. Highlights include the following intersections along the Melladito vein: 12.76 g/t Au and 55 g/t Ag (1,176 g/t AgEq) over a true width (TW) of 4.5m, including  43.5 g/t Au and 171 g/t Ag (3,651 g/t AgEq) over a TW of 0.4m in hole BN-58, and 0.51 g/t Au and 491 g/t Ag (531 g/t AgEq) over a TW of 2.7m, including 1.74 g/t Au and 2,220 g/t Ag (2,359 g/t AgEq) over a TW of 0.4m in hole BN-52. At San Bernabe Vein, hole BN-59 intersected 7.91 g/t Au and 12 g/t Ag (645 g/t AgEq) over a TW of 2.7m.
  • VanGold Mining Corp. reported results from 267 underground channel samples from its Pinguico mine in Guanajuato, with assays up to 1,136 g/t Ag.  Highlights include Pinguico Shaft with 15m  strike length of grade weighted average of 733 g/t Ag and 5 g/t Au (1,136 g/t AgEq); Pinguico Norte with 47m strike length of of 256 g/t Ag and 1.7 g/t Au (394 g/t AgEq); and San Jose NW Pillar  with 25m strike length of 154 g/t Ag and 1.9 g/t Au (303 g/t AgEq).

ON DEALS AND CORPORATE ISSUES

  • Almaden Minerals Ltd.,  announced that all the mining concessions which cover its Ixtaca project in Puebla are not affected by the denial of Almaden´s appeal noted in December 01, 2020 news release. A court decision upholded the original, 14,000 Ha larger concessions, which the Company originally held, confirming that Almaden owns 100% of the property.
  • Auxico Resources Canada Inc., announced the resignation of one of its directors and the appointment of a new member to its board of directors (Zamora property, Sinaloa).
  • Barksdale Resources Corp., announced that its common shares commenced to trade on the OTCQX best market in the USA under the symbols “BRKCF” (San Javier project, Sonora).
  • Defiance Silver Corp., announced that it has entered into an option agreement with Pan American Silver Corp., to acquire 100% interest in the Lucita property in Zacatecas. With this option agreement, Defiance expands its land package on the mining district from 1,600 Ha to 4,300 Ha. The option terms include an initial payment of USD $100K upon signing; USD $100K on or before the first year anniversary; USD $500K on or before the second year anniversary; and a final payment of USD $800K on or before the third year anniversary.
  • Fabled Silver Gold Corp., closed its previously announced acquisition of the Santa Maria mine in Chihuahua. In order to acquire 100% interest in the property, Fabled has to make an initial cash payment of USD $500K in cash and 1M common share on the closing date of the transaction, USD $1.5M in cash 12 month after the acquisition closing, USD $2M in cash 24 months after the closing date, and a total of USD $480K in payments due by the vendor to the optionors under the vendor´s agreement with those optionors as follow: USD $100K on the acquisition closing, USD $120K on 2/4/2021, USD $120K on 8/4/2021, and USD $140K on 2/4/2022. Fabled will also grant the Vendor a 1% NSR with respect to the property upon exercise of the option under the option agreement and will assume from the vendor the obligations in respect of an existing 2% NSR that exists over 3 of the 5 mineral claims that comprise the property.
  • Fortuna Silver Mines Inc., provided and update on the status on a dispute royalty on one of its extracting mining concessions at its San Jose mine in Oaxaca. “In January 2020, the company received notice from the Dirección General de Minas (DGM) seeking to cancel the mining concession if the royalty (MXP $30M + VAT from the period 2011-2019) was no paid before March 15, 2020. Fortuna began legal proceedings against the DGM on February 2020. The District Court in Mexico City admitted the company’s legal proceedings on March 2, 2020 and granted a permanent stay of execution, which protects the company from the cancellation of the concession until a final non-appealable resolution is reached on the legality of DGM’s cancellation procedure. On November 27, 2020 the District Court found that the Company suffered no harm from the notice of cancellation procedure and dismissed the proceedings without deciding on the merit of the Amparo Proceedings and on the validity of the royalty. The company’s legal position with respect to the disputed royalty remains unchanged. The company intends to vigorously defend its position and appeal the Procedural Finding and file an appeal with the Collegiate Court in Mexico by the deadline of December 14, 2020.  A decision of the Collegiate Court is expected during mid-2021”.
  • Magna Gold Corp., announced the change of its fiscal year-end from March 31 to December 31 to align the fiscal year-end of the company with that of its subsidiaries, Molimentales del Noroeste, S.A. de C.V., LM Mining, S.A. de C.V. and Minera Magna, S.A. de C.V., which are required to have fiscal periods for Mexican tax purposes ending on December 31. (San Francisco mine, Sonora). 
  • Orex Minerals Inc., announced management changes. The former CEO has resigned and Ben Whiting has been appointed as President and CEO and as Director of Orex immediately (Sandra-Escobar project, Durango).
  • Orla Mining Ltd., appointed a new member to its board of directors (Camino Rojo project, Zacatecas).
  • Prismo Metals Inc., announced that it has entered into an option agreement to acquire the remaining 25% interest in the Palos Verdes property in Sinaloa. The option gives Prismo control of 100% of the concessions that makes up the property. Under the terms of the option agreement, Prismo will make a cash payment of USD $250K to the optionor an aggregate of US$250K in cash over a four-year period, with the initial payment of USD $30K made on signing. Additionally, 100K warrants will be awarded, with each warrant entitling its owner to purchase one common share of the company at an exercise price of CAD $0.35 per share for two years from the date of execution of the option agreement.
  • Silver Spruce Resources Inc., signed a definitive agreement to acquire 50% interest in the Jackie property in Sonora by making a payment to Colibri for USD $250K and CAD $25K in common shares as the first property payment within 7 days of the TSX approval. Spruce also agrees to spend USD $100K in exploration and drilling expenses with a minimum of USD $50K within 12 months of TSX approval and to pay to Colibri a second payment of USD $25k and CAD $25K in common shares also within 12 months of TSX approval. Upon completion of this terms, Spruce will hold 50% interest in the property and a JV will be formed to direct all exploration and drilling expenses. There are no underlying royalties on the property.
  • Tarachi Gold Corp., announced the appointment of its new CFO and its Corporate Secretary (La Dura mine, Sonora).
  • Vizsla Resources Corp, appointed its new CFO (Panuco project, Sinaloa).

ON SOCIAL RESPONSIBILITY

  • The Sonora Mining Cluster recognized 40 partners for their commitment to Corporate Social Responsibility (CSR), during the closing of the MINNOVACIÓN 2020 Forum.
  • Fresnillo plc., donated 30,000 face mask to the Zacatecas State government to contribute to the authorities to mitigate the COVID-19 pandemic in the entity. The face mask delivered to the authorities are model L03, which have five layers of protection and comply with all security protocols. This action adds to the effort and commitment that the Mexican mining company has made since the beginning of the pandemic to work hand in hand with the community.
  • Newmont Corporation (Minera Peñasquito) delivered pantries and cleaning kits in localities of Mazapil as a service to the community.
  • The mining sector in Mexico has supported efforts to alleviate the effects of the COVID-19 pandemic. The mining industry in the state of Zacatecas has joined the efforts in the fight against the COVID-19 pandemic, and through different companies, such as Newmont, Fresnillo plc, Grupo Mexico, and Orla Mining, has supported many communities with the donation of medical equipment and ventilators. In total, 90,692 N95 masks have been delivered , 164 thousand 452 googles, more than one million 221 thousand masks, as well as 513 thousand 378 isolation gowns and 12 thousand 522 masks, according to the Mexican Chamber of Mexico (CAMIMEX).

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 blade (boiling texture) in a low sulphidation epithermal vein system in a prospect in Durango, Mexico.  Photo by Miguel A Heredia.

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

/ gambusinoprospectormexico / Leave a comment

 

Rich-hematite quartz vein

 

By Miguel A Heredia

During the thirty nine week of the year (September 21th to September 27th, 2020), at least 24 press releases were announced by companies working in Mexico and 11 news published by the media, with eight discussing social issues,  seven disclosing deals and corporate issues, seven informing on exploration results, six announcing financial rounds, four commenting on Mexican issues, two reporting on resources and development of their mine operations, and one communicating production and financial results.  ON MEXICO ISSUES, According to a report by the Bank of Mexico (Banxico), mining in Mexico suffered strong impacts from the COVID-19 pandemic in the first half of 2020. First Majestic provided an update related to its ongoing TAX dispute with the Mexican TAX authority. Resources from the Mining Fund are being used to build an outdoor fitness park at Guadalupe y Calvo, Chihuahua. Alejandro Armenta, senator for MORENA, presented an initiative to nationalize lithium, arguing that it is a strategic mineral for the country’s energy future. It is worrying for the mining sector that voices like this are heard and have weight in making decisions about something extremely delicate without considering the participation of technicians, operators, scientists, businessmen, academics dedicated to mining in Mexico. ON EXPLORATION, In Sonora, Canuc released preliminary exploration results from its San Javier project, Carlyle and its JV partner Riverside reported high grade results from the Cecilia project, Minaurum presented results from the first 4 holes collared in the Europa-Guadalupe vein zone at its Alamos Silver project, and Ridgestone announced drill results from 8 holes collared at its Rebeico project. In Chihuahua, Mammoth provided an update on exploration activities at its Tenoriba project.  In Jalisco, GoGold released the first drilling results from the Salomon-Favor target on its Los Ricos North project.  ON MINING, Hecla reported estimated production results from its San Sebastian mine in Durango for the period January-September, 2020.  ON FINANCING, Advance Gold granted stock options to its directors, key employees, and consultants (Tabasquena project, Zacatecas). Aloro cancelled its previously announced non-brokered private placement (Los Venados project, Sonora).  Comet gave a cleansing notice under section 708A of the corporations acts 2001 (Santa Teresa project, Baja California). Defiance repaid in full the company´s outstanding loan with Windermere Capital Fund SPC (San Acacio project, Zacatecas). Newmont entered into a definitive agreement with Maverix Metals to sell eleven royalties for a total consideration of $90M. Santacruz announced a CAD $6M non-brokered private placement with a lead order from Palisades Goldcorp Ltd., for CADS $3M (Zimapan mine, Hidalgo).   ON RESOURCES AND DEVELOPMENT, Southern Silver will commence a 10,000m drilling program in 20-25 holes which will focus on the development of mineral resources on the east side of its Cerro Las Minitas project, Durango. Xtierra announced its intention to conduct a small drill campaign of five holes for a total of 1,500m at its Bilbao project in Zacatecas.    ON DEALS AND CORPORATE ISSUES, Barksdale signed a definitive agreement to acquire San Javier project in Sonora. Excellon announced that its common shares will commence trading on the NYSE American LCC (La Platosa mine, Durango).  First Majestic announced that it has filed an early warning report for the acquisition of common shares of Silver Dollar (La Joya project, Durango). Global Li-Ion entered into a letter agreement with Grupo Minera Diflor to acquire a 100% interest in the MVZ Au-Ag property in Chihuahua. Reyna Silver appointed new chairman and announced additional changes to the board of directors (Guigui and Batopilas projects, Chihuahua). Silver Tiger announced that it will commence to trade on the OTCQX Best Market under the ticker symbol “SLVTF” (El Tigre project, Sonora).  ON SOCIAL RESPONSIBILITY, Autlan supported communities affected by heavy rains in Hidalgo. La Cantera Desarrollos Mineros, a subsidiary of Peñoles, signed a constitutive act for healthy work returned to its Capela mine located in Guerrero. Fresnillo plc launched its “take care of yourself” campaign that fights against COVID-19 pandemic. Minera Penmont, a subsidiary of Fresnillo plc celebrated 23 years of making history in Caborca, Sonora (La Herradura and Noche Buena mines), ​​with a team of more than 4 thousand people committed to cutting-edge and responsible mining. Dr. Vagón, the ambulating clinic of Grupo Mexico Foundation celebrates six years of operation providing totally free medical services throughout the Mexican Republic. Mina La Colorada, a subsidiary of Pan American Silver, received for the first time the Inclusive Company Distinction (DEI), which accredits it as a company of good labor practices. Fresnillo plc, through Minera San Julian, donated 10 thousand masks to the inhabitants of Parral, Chihuahua. Pan American Silver Mexico carried out a campaign for the use of face masks and delivery of antibacterial kit.

ON MEXICO ISSUES

  • According to a report by the Bank of Mexico (Banxico), mining in Mexico suffered strong impacts from the COVID-19 pandemic in the first half of 2020. All regions had to suspend activities during April and May, since at the beginning practically the entire sector was declared a non-essential activity during the health emergency.
  • First Majestic Silver Corp., provided an update related to its ongoing TAX dispute with the Mexican TAX authority (SAT). The company was informed by its Mexican legal advisors that the Primero Empresa Minera (PEM) transaction will be served with a decision made on September 23, 2020 by the Federal Court on Administrative Matters, nullifying the advance pricing agreement (APA) granted to PEM and directing the TAX authority to re-examine the evidence and basis for the issuance of the APA. The Federal Court decision is appealable to the Circuit Courts. The company´s legal advisers are of the view that the Federal Court´s decision was not arrived following regular procedures, was undertaken hastily, and did not provide opportunity for the presentation of evidence from PEM. The Company continues to assess all of its legal options, both domestic and international.
  • Resources from the Mining Fund are being used to built an outdoor fitness park at Guadalupe y Calvo, Chihuahua, with the goal of generating spaces for healthy recreation to help to maintain a good physical condition of the community population.
  • Alejandro Armenta, senator for MORENA, presented an initiative to nationalize lithium, arguing that it is a strategic mineral for the country’s energy future. Alberto López Santoyo, Director of Mundo Minero stated that it is worrying for the mining sector that voices like this are heard and have weight in making decisions about something extremely delicate without considering the participation of technicians, operators, scientists, businessmen, academics dedicated to mining in Mexico. “The great technical-political errors in the history of Mexico have definitely been those that make an economic activity less competitive. If the government has the intention of producing lithium is fine, but that it participates in the battle field as one more company, like any other protagonist of this new productive context. Let’s not take away competitiveness from mining companies and thousands of capable Mexicans with legitimate intentions to participate in this challenge in a responsible and technically viable manner. Freedom to produce, freedom to compete”.

ON EXPLORATION

  • Canuc Resources Corporation presented preliminary exploration results from its San Javier project in Sonora. The company has conducted reconnaissance geological mapping and rock sampling on the eastern and northeast part of the property and has identified swarms of Fe-matrix hydrothermal breccias over a large area of 900m by 1,200m. One of these individual breccias measures from 30m to 70m in width and has been traced for over at least 800m along strike. This breccia is controlled by two fault structures. To date, 267 rock samples have been collected but assay results are only available for the first 157 samples. Values range from trace to 2,859 g/t Ag and from 74 ppm to 0.59% Cu, with 35 samples exceeding > 100 g/t Ag. Additional work is planned to continue the mapping and sampling on unmapped ground along these breccia zones.
  • Carlyle Commodities Corp., and its JV partner Riverside Resources Inc., announced high grade results from the Cecilia project in Sonora. Riverside is acting as the JV operator and has focused on channel sampling at the San Jose and North Breccia targets. First results from 21 rock samples returned high grades including 43.2 g/t Au over 0.4m wide, 5.6 g/t Au over 0.6m wide, and 2.5 g/t Au over 0.1m wide. In addition, Riverside is also working on drilling preparation, including construction of drill pads and improvement of foot/trail roads, conducting a drone aeromagnetic survey, carrying out a detailed mapping and sampling of the main dome target at Cerro Magallanes, and conducting an IP survey to define the depth of potential conductors interpreted to be sulphide zones.
  • Minaurum Gold Inc., presented drill results from the first 4 holes collared in the Europa-Guadalupe vein zone at its Alamos Silver project. Significant drill intercepts were encountered in hole AL20-042 with 404 g/t Ag, 0.54% Cu, 1.3% Pb, 1.8% Zn over 3.50m, including 999 g/t Ag, 1.29% Cu, 3% Pb, 3% Zn over 1.55m, and hole AL20-047 with 356 g/t Ag, 0.39% Cu, 0.4% Pb, 0.6% Zn over 6.35m, including 2,090 g/t Ag, 1.98% Cu, 2.5% Pb, 2.4% Zn over 0.7m. Drilling will continue to test down-dip as well as along strike of vein intersections at Europa- Guadalupe at 75-150 m increments.
  • Ridgestone Mining Inc., announced results from 8 holes totalling 1,238m collared at its Rebeico project in Sonora. Significant drill intersects were encountered in hole 20REB018D with 0.54% Cu over 29.15m, including 1.95% Cu over 2.25m; hole 20REB022D with 2.62 g/t Au and 0.54% Cu over 0.65m; and hole 20REB023D with 3.82 g/t Au and 0.75% Cu over 4.35m, including 8.61 g/t Au and 0.5% Cu over 1.55m. “Drilling results continues to extend the lateral footprint of mineralization. These latest results definitely warrant follow up and we will commence a strategic targeting exercise for follow-up drilling”.
  • Mammoth Resources Corp., provided an update on exploration activities at its Tenoriba project in Chihuahua. It also received a notification from Minera Centerra, its JV partner on Tenoriba project, about its decision to cease exploration activities in Mexico, including at Tenoriba, however Centerra expressed their enthusiasm for drilling the Tenoriba project. Over the last 6 months, Mammoth-Centerra geologists have been reinterpreting the geophysical surveys, carrying out extensive surface lithological and structural mapping and sampling, and conducting drill core mapping and sampling, including Terraspec alteration clay analysis. In mid-August Centerra filed an application for permission to drill up to 139 drill locations at Tenoriba and a response/approval of this permit application is expected within weeks. Two drill contractors were preparing bids on the Centerra drill program.
  • Xtierra Inc., announced its intention to conduct a small drill campaign of five holes for a total of 1,500m at its Bilbao project. The first target area is located adjacent to and west of the main Bilbao Silver-Lead-Zinc deposit, while the second target is called El Cabezon, a former Ag mine operated by the Frisco Industrial Group.
  • GoGold Resources Inc., released the first drilling results from the Salomon-Favor target on its Los Ricos North project. Highlights include hole LRGS-20-001 with 0.24 g/t Au and 280 g/t Ag (3.98 g/t AuEq or 298 g/t AgEq) over 14m, including 0.51 g/t Au and 699 g/t Ag (9.82 g/t Au and 737 g/t AgEq) over 5m; hole LRGF-20-001 with 0.36 g/t Au and 142 g/t Ag (2.25 g/t AuEq and 168 g/t AgEq) over 41.7m, including 1.12 g/t Au and 444 g/t Ag (7.05 g/t AuEq or 529 g/t AgEq) over 11m; and LRGF-20-004 with 0.24 g/t Au and 74 g/t Ag (1.24 g/t AuEq or 93 g/t AgEq) over 41.1m, including 1.45 g/t Au and 419 g/t Ag (7.04 g/t AuEq or 528 g/t AgEq) over 4.1m. The drilling program will continue to test the known zones of mineralization along strike and down dip from the historical underground workings of the La Trini deposits located 5km northwest.

ON MINING

  • Hecla Mining Company reported preliminary production results for the period January-September, 2020 from its San Sebastian mine in Durango. Hecla produced 6K Oz Au and 0.8M Oz Ag

ON FINANCING

  • Advance Gold Corp., granted stock options to its directors, key employees, and consultants to purchase up to 2Mshares over a five year term (Tabasquena project, Zacatecas).
  • Aloro Mining Corp., reported that due the COVID-19 pandemic, it cancelled its previously announced non-brokered private placement (Los Venados project, Sonora).
  • Comet Resources Ltd., gave a cleansing notice under section 708A of the corporations acts 2001. The company issued a total of 11.5M fully paid ordinary shares and 65M options, as per the proposed 3B forms lodged on 25 August 2020 and 21 April 2020. (Santa Teresa project, Baja California).
  • Defiance Silver Corp., repaid the total outstanding balance of $1,312,018 to Windermere Capital Fund SPC including accrued interest. (San Acacio project, Zacatecas).
  • Newmont Corporation entered into a definitive agreement with Maverix Metals Inc., to sell eleven royalties for a total consideration of $90M, consisting of $15M in cash, 12M Maverix common shares, and up to $15M in contingent cash payments payable upon completion of certain milestones. The royalties provide exposure to five flagship gold assets owned and operated by growth-oriented mining companies. The portfolio includes royalties on Camino Rojo and Ana Paula in Mexico, Cerro Blanco in Guatemala, and Mother Lode and Imperial in the United States.
  • Santacruz Silver Mining ltd., announced a CAD $6M non-brokered private placement with a lead order from Palisades Goldcorp Ltd., for CADS $3M. The proceeds from the private placement are expected to be used by the company to purchase underground equipment for its Zimapan property in Hidalgo and for general working capital and corporate purposes.

ON RESOURCES AND DEVELOPMENT

  • Southern Silver Exploration Corp., will commence a 10,000m drilling program in 20-25 holes which will focus on the development of mineral resources on the east side of its Cerro Las Minitas project, Durango through step-out drilling from previously identified high-grade, strongly silver-enriched mineralization in the Mina La Bocona and South Skarn target areas. Some meterage will also be used to further extend mineralization at the Las Victorias target.
  • Xtierra Inc., announced its intention to conduct a small drill campaign of five holes for a total of 1,500m at its Bilbao project. The first target area is located adjacent to and west of the main Bilbao Silver-Lead-Zinc deposit, while the second target is called El Cabezon, a former Ag mine operated by the Frisco Industrial Group.

ON DEALS AND CORPORATE ISSUES

  • Barksdale Resources Corp., signed a definitive option agreement with Tusk Exploration Ltd., to acquire the San Javier del Cobre project in Sonora.
  • Excellon Resources Inc., announced that its common shares will commence trading on the NYSE American LCC under the ticker symbol “EXN” (La Platosa mine, Durango).
  • First Majestic Silver Corp., announced that it has filed an early warning report for the acquisition of common shares of Silver Dollar. First Majestic has acquired ownership and control of 5,146,401 shares, representing approximately 14.9% of the outstanding shares (La Joya project, Durango).
  • Global Li-Ion Graphite Corp., entered into a letter agreement with Grupo Minera Diflor S.A.de C.V., to acquire a 100% interest in the MVZ Ag-Au property in Chihuahua. The 1,200 hectare property hosts 3 past producing Ag-Au deposits: El Moro, La Virginia and La Zorra (MVZ Property). The Property is situated within Grupo Minero Diflor’s Pajarito project which covers an area of 10 X 25 km.
  • Reyna Silver Corp., appointed new chairman and announced additional changes to the board of directors (Guigui and Batopilas projects, Chihuahua).
  • Silver Tiger Metals Inc., announced that it will commence to trade on the OTCQX Best Market under the ticker symbol “SLVTF” (El Tigre project, Sonora).

ON SOCIAL RESPONSIBILITY

  • Compañía Minera Autlan S.A. B de C.V., supported more than 6,100 people from Tepehuacan de Guerrero and 705 people from Molango affected by the heavy rains in Hidalgo which caused landslides and floods in these entities. To date, communication between the communities has been completely reestablished and significant progress has been made in cleaning up the material that was carried by the rain (Molango mine, Hidalgo).
  • La Cantera Desarrollos Mineros, a subsidiary of Peñoles, signed a constitutive act for healthy work returned to its Capela mine located in Guerrero. The new work normality is accompanied by activities and sanitary measures in order to reduce the risks of COVID-19.
  • Fresnillo plc launched in Fresnillo, Zacatecas, its “take care of yourself” campaign that fights against COVID-19 pandemic. The company delivered 150,000 face masks on the streets of the downtown area.
  • Minera Penmont, a subsidiary of Fresnillo plc, celebrated 23 years of making history in Caborca, Sonora (La Herradura and Noche Buena mines) ​​with a team of more than 4 thousand people committed to cutting-edge and responsible mining. Since its arrival in 1997, it has meant an economic, social and environmental watershed for the state and, particularly for the region and its surroundings.
  • Vagón, the ambulating clinic of Grupo Mexico Foundation celebrates six years of operation providing totally free medical services throughout the Mexican Republic. It offers from general consultations to specialized ones; currently, it has five specialties: Ophthalmology, Dermatology, Pediatrics, Gynecology and Geriatrics. Dr. Vagón, with 17 wagons and 65 people as part of the crew, including administrative and medical personnel, has the capacity to serve 500 people a day.
  • Mina La Colorada, a subsidiary of Pan American Silver Corp., received for the first time the Inclusive Company Distinction (DEI), which accredits it as a company of good labor practices. This award is a recognition given by the Federal Government through the Ministry of Labor and Social Welfare to companies, academic institutions, organizations, federal, state and municipal public agencies that implement and operate inclusive, egalitarian and equitable labor policies for the benefit of workers, without discrimination towards people in vulnerable situations.
  • Fresnillo plc, through Minera San Julian, donated 10 thousand masks to the inhabitants of Parral, Chihuahua. The company considers that these measures are part of the strategy for the health care of the inhabitants, since, together with an information campaign, remind the population of the importance of maintaining sanitary measures in the current situation.
  • Pan American Silver Corp., through Minera Dolores, Chihuahua and Mina La Colorada, Zacatecas carries out a campaign for the use of face masks and delivery of antibacterial kit to reduce the risk of contracting COVO¡ID-19. More than 2,500 kits (antibacterial spray, wet towels, antibacterial gel, face masks) as well as triptychs, were delivered to the elderly, single mothers, vulnerable people, the general population, as well as personnel who work in government offices of the H. Town Hall of the municipalities of Sombrerete and Chalchihuites, Zacatecas; Municipality of Madera, Chihuahua and all the workers of Mina La Colorada and Minera Dolores.

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 rich-hematite quartz vein displaying boiling texture from a low-sulphidation epithermal vein system in a prospect in Sinaloa, Mexico.  Photo by Miguel A Heredia

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

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Hydrothermal breccia

By Miguel A Heredia

During the thirty three week of the year (August 24th to August 30th, 2020), at least 39 press releases were announced by companies working in Mexico, with eleven commenting on Mexican issues, ten disclosing deals and corporate issues, six informing on exploration results, five announcing financial rounds, four reporting on resources and developments of their mine operations, two communicating production and financial results, and one discussing social issues. ON MEXICO ISSUES, AMLO stated in one of its morning press conferences that the Mining Fund will be re-activated and re-organized. The Undersecretary of Mining, The Mexican Mining Chamber (CAMIMEX) demanded that the Mining Fund go back to communities. Francisco Quiroga spoke about the role that the mining industry plays in Mexico. Mexico Mining sector captures USD $873M of Foreign Direct Investment (FDI). Fernando Alanis, President of the Mexican Mining Chamber (CAMIMEX), declared that the investment in mining exploration in Mexico could fall to its lowest level in 14 years. The Undersecretary of Mining, Francisco Quiroga, informed that in Mexico, mining is promoted without environmental disasters or social conflicts. Coeur Mining Inc, a US mining company, claimed MXP $1,000M (over USD $46M) to the government of Mexico.  Jorge Mátar Vargas, a businessman from Morelos, said that the investment of the Esperanza Silver mining project would reactivate the economy of Morelos, given the crisis it faces due to the COVID-19 pandemic. Napoleón Gómez Urrutia, senator and leader of one of the Mexican mining union tweeted that he won a labor lawsuit against Grupo Peñoles. Sergio Almazán is the new President of the Association of Metallurgical, Mining and Geologist Engineers of Mexico A.C (AIMMGM). Francisco Quiroga, Undersecretary of Mining of Mexico, declared that the recovery of the prices of the main minerals produced in Mexico will reinforce mining investment projects in the country. ON EXPLORATION, In Sonora, Tocvan released results from the structural analysis carried out at its El Pilar project, Silver Viper reported results from ten drill holes collared at its El Rubi project, and Tarachi announced the beginning of a 5,000m drilling program at its Tarachi Gold project. In Sinaloa, Vizsla released drill results from its Panuco project. In Durango, Mithril released drilling results from its Copalquin project. ON MINING, Impact reported Q2, 2020 production and financial results from its Zacualpan mining district in the State of Mexico. Santacruz reported the filing of a NI43-101 technical report for its Zimapan mine in Hidalgo.  ON FINANCING, Redstar completed a non-brokered private placement for gross proceeds of CAD $7M (Heliodor properties, Mexico). Kootenay closed its previously announced private placement for gross proceeds of $7M (Columba project, Chihuahua). Capitan Mining closed a private placement for gross proceeds of $3,840,855 (Peñoles project, Durango). VVC announced a non-brokered private placement to raise gross proceeds of up to CAD $3.3M (Kaity Copper project, Chihuahua).  Gold Resource declared its August monthly dividend to shareholders (Arista mine, Oaxaca). ON RESOURCES AND DEVELOPMENT, Mexus provided an update on progress at its Santa Elena mine in Sonora.  Silver Dollar reported phase 3 drilling results not previously reported by SilverCrest from its la Joya project in Durango. GoGold announced the filing of a NI43-101 technical report on the initial mineral resource estimate for their Los Ricos South project in Jalisco. Santacruz reported the filing of a NI43-101 technical report for its Zimapan mine in Hidalgo. Golden Minerals released results from its resource definition drill program at its Rodeo project in Durango.  ON DEALS AND CORPORATE ISSUES, Redstar announced the acquisition of Heliodor Metals Limited and appointed its new CEO. Orla appointed its Senior VP Exploration (Camino Rojo project, Zacatecas). Sonoro announced that its board of directors approved the change of the company´s name to Sonoro Gold Corp (Cerro Caliche project, Sonora). Azure presented results from its annual general meeting of shareholders (Mesa de Plata project, Sonora).   Newmont announced the replacement of the General Manager of the Peñasquito mine, Zacatecas.  Silver Spruce granted stock options to its CFO (El Mezquite project, Sonora). SilverCrest acquired El Picacho property near its Chispas project in Sonora. Orogen (former Evrim) optioned the Sarape Au property in Sonora to Minera Hochschild SA de CV, a subsidiary of Hochschild Mining PLC. Comet executed a share purchase a JV agreement with El Alamo Resource to acquire 100% interest in the Santa Teresa project in Baja California. ON SOCIAL RESPONSIBILITY, Fresnillo plc trains its staff on COVID-19.

ON MEXICO ISSUES

  • Andrés Manuel López Obrador (AMLO), President of Mexico, stated in one of its morning press conferences held in Zacatecas that the Mining Fund will be re-activated and re-organized. He cited that, in the case of the Mining Fund, the resources reached the governments municipalities, but not to the communities.
  • The Mexican Mining Chamber (CAMIMEX), demanded that the Mining Fund go back to communities. Mexico imposed a 7.5% royalty in 2014, plus a special mining tax of 0.5% on gold and silver operations. Most of the proceeds go to social infrastructure projects in mining communities, distributed through the Mining Fund. However, under a reorganization announced by President Andrés Manuel López Obrador, the funds were redirected to a federal budget for schools. Although AMLO has said that the previous system recorded corruption cases and sometimes the cash for projects did not arrive, some industry experts consider that the Mining Fund is a critical tool for mines and projects to win and maintain support of the communities.
  • The Undersecretary of Mining, Francisco Quiroga, spoke about the role that the mining industry plays in Mexico. He said that mining, which is carried out generally in remote locations with difficult access, is a great generator of foreign exchange, as it is mainly an exporter in the case of Mexico, where it contributes more than 4% of GDP. He also emphasized that only small and medium-sized mines require investments of between USD $350-500M, and that medium-scale mines generate 1,000 to 2,000 direct jobs and around 5,000 – 10,000 indirect jobs.
  • Mexico Mining sector, captures USD $873M of Foreign Direct Investment (FDI) in the first half of 2020, a year-on-year decline of 18.6%, according to statistics from the Ministry of the Economy. About 25% of the Mexican territory has been explored in detail, so there is a great opportunity for the development of new projects. Mexico places 12 to 19 minerals year after year within the top 10 production places globally. Development risk in mining is concentrated in the exploration stages and decreases as the operation stage progresses.
  • Fernando Alanis, President of the Mexican Mining Chamber (CAMIMEX), declared that the investment in mining exploration in Mexico could fall to its lowest level in 14 years, although the drop would be even greater given that it does not consider the impact of the COVID-19 pandemic. He said that in recent years exploration activities in the country have suffered a strong fall due to the uncertainty of investors. “Mexico has lost attractiveness as a mining investment destination… that is a fact”. “We have seen a very important reduction of more than 150 exploration companies that are no longer in Mexico and that is worrying.”
  • The Undersecretary of Mining, Francisco Quiroga, informed that in Mexico, the mining sector has to do it environmentally sustainable and socially inclusive, with zero fatalities, no environmental disasters or generating social conflicts. He also informed that active mining concessions represent only four million hectares, that is, a little more than 2% of the national territory and after conducting a review, total concessions decreased from 25 thousand to 21 thousand, which represented a reduction from 21 million to 16 million hectares.
  • Coeur Mining Inc , a US mining company, claimed MXP $1,000M (over USD $46M) to the government of Mexico. Coeur, the fifth silver producer in Mexico, seeks to obtain this compensation from the federal government because the Mexican Tax Administration (SAT) did not refund the VAT. This is the second case that is presented so far in 2020. The first was the notice of the Canadian company First Majestic Silver Corp to the Mexican government, also due to an action by the SAT. On May 13, in its notification, it communicated that the claim amounts to USD $500M, in addition to the interest generated, expenses and costs applicable in the arbitration procedure.
  • Jorge Mátar Vargas, a businessman from Morelos, said that the investment of the Esperanza Silver mining project would reactivate the economy of Morelos, given the crisis it faces due to the COVID-19 pandemic. He also argued that with the Esperanza Silver mining project, state economic activity would be detonated. It would help reduce the deficit of jobs in the state and rescue small entrepreneurs. This project represents a millionaire private investment for the entity, with the capacity to generate hundreds of direct and indirect jobs and is a potential to strengthen the local economy.
  • Napoleón Gómez Urrutia, senator and leader of one of the Mexican mining union tweeted (by the way, a very strange tweet), that he won a labor lawsuit against Grupo Peñoles for unjustified dismissal, for which the company must pay him MXP $1M of lost wages and benefits for 12 years and 8 months that he worked for Minera Mexicana La Ciénega.
  • Sergio Almazán is the new President of the Association of Metallurgical, Mining and Geologist Engineers of Mexico A.C (AIMMGM) for the biennium 2020-2022.
  • Francisco Quiroga, Undersecretary of Mining of Mexico, declared that the recovery of the prices of the main minerals produced in Mexico will reinforce mining investment projects in the country and will allow mining to be part of the competitive advantage for other industries in the country such as manufacturing.

ON EXPLORATION

  • Tocvan Ventures Corp., JV partner of Colibri Resource Corporation, released results from the structural analysis carried out at its El Pilar project in Sonora. “The initial overview of the 3D inversion of magnetic susceptibility data has revealed stand-out significant major structures that are universally associated with “plumbing” systems for gold-silver fluid flow and deposition. Structures appear as shear zones, faults, brecciated rock, rotational gashes within shear zones and other such dilation structures”. The main identified structure is a 1,000m by 250m large NW-SE trending structure bounded by additional N-S trending structures with approximate lengths of 300m. The NW-SE structure as been interpreted as a structural corridor holding a shear zone with rotational features that suggest excellent means of plumbing for metal-mineral-rich fluids to flow through and deposit.
  • Silver Viper Minerals Corp., reported results from ten drill holes collared its La Virginia project in Sonora. Of the ten holes, six were drilled at El Rubi and four at Macho Libre. At El Rubi area, a broad zone of mineralization was encountered in hole LV20-245#1 with 0.76 g/t Au and 38 g/t Ag over a true width (TW) of 55.2m, including 1.79 g/t Au and 92 g/t Ag over a TW of 3m; and 2.49 g/t Au and 152 g/t Ag over a TW of 1m; and 7.98 g/t Au and 353 g/t Ag over a TW of 2.5m, including 20.7 g/t Au and 854 g/t Ag over a TW of 0.5m; hole LV20-245#2 with 0.6 g/t Au and 14 g/t Ag over a TW of 11.2m, including 1.43 g/t Au and 4 g/t Ag over a TW of 1.5m; and hole LV20-245#3 with 0.56 g/t Au and 22 g/t Ag over a TW of 7.5m, including 3.26 g/t Au and 19 g/t Ag over a TW of 0.5m, and an interval of 0.93 g/t Au and 124 g/t Ag over a TW of 0.2m. At Macho Libre, the most significant drill intercept was encountered at hole LV20-240M with 0.5 g(t Au and 7 g(t Ag over a TW of 0.6m.
  • Tarachi Gold Corp., announced the beginning of a 5,000m drilling program at its Tarachi Gold project in Sonora. The company plans to start the drill program at La Dura mine where channel sampling returned 6.34 g/t Au over 62.55m.
  • Vizsla Resources Corp., released the first step-out drill results along the Napoleon Vein corridor at its Panuco project in Sinaloa. Hole NP-20-18, located 1km north from the original discovery at Napoleon encountered 3.76 g/t Au, 689 g/t Ag, 0.2% Pb, 0.6% Zn (1,019 g/t AgEq) over a width of 2.5m, including 7.96 g/t Au, 1,515 g/t Ag, 0.5% Pb, and 1.2% Zn (2,206 g/t AgEq) over a width of 1m. Assays are pending for holes NP-20-19 and NP-20-21 separated each other for a distance of 90m.
  • Mithril Resources Ltd, announced results from the two first drill holes collared at its Copalquin project in Durango. Hole CDH-001 encountered 34.72 g/t Au and 3,129 g/t Ag over 3m, including 88.4 g/t Au and 6,750 g/t Ag over 1m; and hole CDH-002 with 5.64 g/t Au and 325 g/t Ag over 4.55m, including 9.82 g/t Au and 574 g/t Ag over 1.5m, plus 9.27 g/t Au and 825 g/t Ag over 0.5m. The two first holes are part of a 5,000m (35 holes) drilling program and intercepted the Soledad vein, confirming historically bonanza grades.

ON MINING

  • Impact Silver Corp., reported Q2, 2020 production and financial results from its Zacualpan mining district, State of Mexico. Despite losing nearly half the quarter (April to June) due to mandatory shutdown, Impact milled 25,602 tonnes with an average mill feed grade of Ag of 187 g/t to produced 129,570 Oz Ag. Q2, 2020 production at the Guadalupe mill came from the Guadalupe mine (37%), the San Ramon mine (23%), the Cuchara mine (23%), and the Veta Negra mine (17%). Impact reported revenues for $2.84M and an adjusted EBIDTA of $0.48M. At June 30, 2020, cash position was at $6.3M with working capital at $5.3M.
  • Santacruz Silver Mining Ltd., reported the filing of a NI43-101 technical report for its Zimapan mine in Hidalgo. Zimapan consists of 34 mining concessions totalling 5,138.76 ha and has had an extensive mining history dating back to the 1660´s. There are fourteen known mineral zones that are hosted in Lower Cretaceous limestone and calcareous shales. The zones contain targets that range from 3-10 m in width that have been traced 40-1000 m along strike and 40-590 m down dip. The property has been in production since January 1, 2010 and as of December 31, 2019 Carrizal Mining mined approximately 5.88M tonnes of mineralized material, including 3.43M tonnes at head grades ranging from 73-101 g/t Ag, 0.4-0.5% Pb, 1.8-2.8% Zn, and 0.49-0.67 % Cu from the Monte mine, and  45 MT at head grades ranging from 82-124 g/t Ag, 0.6-1.2 % Pb, 2.-4.4 % Zn, and 0.28-0.48 % Cu from the Carrizal mine.

ON FINANCING

  • Redstar Gold Corp., completed a non-brokered private placement for gross proceeds of CAD $7M. The company plans to use the net proceeds for exploration drilling and resource delineation, updating the resource and general working capital (Heliodor properties, Mexico).
  • Kootenay Silver Inc., closed its previously announced private placement for gross proceeds of $7M. The Company intends to use the net proceeds from the offering for exploration and development activities, working capital requirements and other general corporate purposes (Columba project, Chihuahua).
  • Capitan Mining Inc., closed its private placement for gross proceeds of $3,840,885.00 instead of the 10,000,000 shares ($2,000,000) originally contemplated. Net proceeds will be used to fund a focused drill program at the Peñoles project in Durango, additional project acquisitions and general corporate purposes.
  • VVC Exploration Corporation, announced a non-brokered private placement to raise gross proceeds of up to CAD $3.3M. Gross proceeds will be used for development of its Kaity project, Chihuahua, including costs associated with various permits, metallurgical bench testing, and investigation, evaluation and implementation of the Gloria pilot mining; option payments in Mexico; current accounts payable; general administrative expenses; and working capital.
  • Gold Resource Corporation, declared its August monthly dividend to shareholders. It will consists of one-third of a cent per common share for August 2020 payable on September 23, 2020 to shareholders of record as of September 11, 2020. (Arista mine, Oaxaca).

ON RESOURCES AND DEVELOPMENT

  • Mexus Gold US, provided an update on progress at its Santa Elena mine in Sonora. The company improved the crushing circuit to maximize efficiencies, hired two new equipment operators and a lab technician, and acquired a 330 excavator a 40 ton haul truck and repaired existing equipment. The company expects to show an increase in production during the Q2 of its fiscal year (July through September).
  • Silver Dollar Resources Inc., reported phase 3 drilling results not previously reported by SilverCrest from its la Joya project in Durango. This in-fill drilling program consisted of 17 drill holes targeted to advance towards an updated resource model in H1, 2015. Significant drill intercepts were encountered in hole LJDD14-109 with 0.73 g/t Au, 33 g/t Ag and 0.36% Cu (119 g/t AgEq) over a width of 21.92m, including 3.45 g/t Au, 12 g/t Ag and 0.1% Cu (231 g/t AgEq) over a width of 4.4m; LJDD14-114 with 0.09 g/t Au, 193 g/t Ag and 2.58% Cu (501 g/t AgEq) over a width of 1.2m and 0.38 g/t Au, 43 g/t Ag, and 0.27% Cu (98 g/t AgEq) over a width of 66.4m. including 1.26 g/t Au, 219 g/t Ag, and 1.48% Cu (468 g/t AgEq) over a width of 3.15m; hole LJDD20-115 with 0.06 g/t Au, 234 g/t Ag, and 1.24% Cu (382 g/t AgEq) over a width of 6.1m, including 0.17 g/t Au, 734 g/t Ag, and 3.75% Cu (1,182 g/t AgEq) over a width of 1m; hole LJDD20-116 with 0.06 g/t Au, 76 g/t Ag, and 0.55% Cu (144 g/t AgEq) over a width of 25.1m, including 0.04 g/t Au, 185 g/t Ag, and 1.37% Cu (348 g/t AgEq) over a width of 9.1m, and 0.11 g/t Au, 602 g/t Ag, and 4.64% Cu (1,151 g/t AgEq) over a width of 1.8m, and 0.29 g/t Au, 106 g/t Ag, and 1.2% Cu (234 g/t AgEq) over a width of 23.1m, including 0.09 g/t Au, 723 g/t Ag, and 8.97% Cu (1,778 g/t AgEq) over a width of 2m.
  • GoGold Resources Inc., announced the filing of a NI43-101 technical report on the initial mineral resource estimate for their Los Ricos South project in Jalisco. Measured and indicated mineral resource are 10M tonnes of 199 g/t AgEq to contain 63.7M Oz AgEq, and Inferred resources are 3.3M tonnes of 190 g/t AgEq to contain 19.9M Oz AgEq. Los Ricos South mineral resource is potentially amenable to both open pit and bulk underground mining methods. The company also expanded the surface rights agreement. On August 9,2020 the Ejido Cinco Minas, which owns the surface rights over the majority of the Los Ricos South concessions including all of those within the mineral resource estimate, signed an agreement with the company for a period of 12 years with an additional 12 year renewal period.
  • Santacruz Silver Mining Ltd., reported the filing of a NI43-101 technical report for its Zimapan mine in Hidalgo. Zimapan consists of 34 mining concessions totalling 5,138.76 ha and has had an extensive mining history dating back to the 1660´s. There are fourteen known mineral zones that are hosted in Lower Cretaceous limestone and calcareous shales. The zones contain targets that range from 3-10 m in width that have been traced 40-1000 m along strike and 40-590 m down dip. The property has been in production since January 1, 2010 and as of December 31, 2019 Carrizal Mining mined approximately 5.88M tonnes of mineralized material, including 3.43M tonnes at head grades ranging from 73-101 g/t Ag, 0.4-0.5% Pb, 1.8-2.8% Zn, and 0.49-0.67 % Cu from the Monte mine, and  45 MT at head grades ranging from 82-124 g/t Ag, 0.6-1.2 % Pb, 2.-4.4 % Zn, and 0.28-0.48 % Cu from the Carrizal mine.
  • Golden Minerals Company, released results from its resource definition drill program at its Rodeo project in Durango. Golden reported results from 11 drill holes with significant intercepts showing wide zones of high-grade near-surface Au mineralization. Highlights include hole RDO_20_012 with 6.66 g/t Au and 14 g/t Ag over 24.5m, including 9.3 g/t Au and 15 g/t Ag over 8.6m; hole RDO_20_014 with 5.87 g/t Au and 27 g/t Ag over 23.5m, including 8.83 g/t Au and 38 g/t Ag over 12.9m; and hole RDO_20_017 with 2.85 g/t Au and 11 g/t Ag over 21.4m, including 5.1 g/t Au and 15 g/t Ag over 6m.

ON DEALS AND CORPORATE ISSUES

  • Redstar Gold Corp., announced the acquisition of Heliodor Metals Limited., and appointed its new CEO and board of directors. To acquire Heliodor, Redstar issued an aggregate of 86,621,003 shares to the former Heliodor shareholders in exchange for all the issued and outstanding Heliodor securities.
  • Orla Mining Ltd., announced the appointment of its Senior VP Exploration (Camino Rojo project, Zacatecas).
  • Sonoro Metals Corp., announced that its board of directors approved the change of the company´s name to Sonoro Gold Corp (Cerro Caliche project, Sonora).
  • Azure Minerals Limited, presented results from its annual general meeting of shareholders (Mesa de Plata project, Sonora).
  • Newmont Corporation, announced the replacement of the General Manager of the Peñasquito mine, Zacatecas. The former General Manager was ceased for violations of Newmont´s Code of Conduct.
  • Silver Spruce Resources Inc., granted 300K stock options to its CFO (El Mezquite project, Sonora).
  • SilverCrest Metals Inc., announced the acquisition of El Picacho property, near its Las Chispas project in Sonora, from American Metal Mining. The purchase price paid by SilverCrest was for the amount of USD $1.6M and is for a 100% ownership in 11 mining concessions totalling approximately 7,060 hectares. The company also paid all the mining taxes to bring these concessions to good standing. The Property was a historic gold and silver producer, with the first noted production in late 1800s with grades greater than 15 g/t Au. “There are seven (7) low-sulphidation epithermal main veins on the concessions, with numerous near parallel hanging and footwall veins. The main veins have a known cumulative strike length of over 10km with widths ranging from 0.5 to 15m”.
  • Orogen Royalties Inc., (former Evrim) optioned the Sarape Au property in Sonora to Minera Hochschild SA de CV, a subsidiary of Hochschild Mining PLC.  Hochschild can earn a 100% interest in the Sarape project by making cash payments of USD $5.35M and completing expenditures of USD$5M over a five-year period. Upon exercise of the option, Hochschild will grant to Orogen a 3% NSR of which 1% can be purchased for USD $2M.
  • Comet Resources Ltd., executed a share purchase and JV agreement with El Alamo Resources Limited to acquire 100% interest in the Santa Teresa project in Baja California. The acquisition will be completed on a staged basis, with Comet acquiring an initial 50% interest by making a refundable $100K cash payment. The remaining 50% interest will be acquired upon a decision to mine being made in respect of the Project within a two year period. Comet is now 50% owner of the Santa Teresa property and has the option to increase its ownership to 100% within two years. Historical production in the surrounding El Alamo district has been estimated in between 100K-200K Oz Au. The Santa Teresa project is comprised of two mineral claims totalling 202 hectares. Previous operator drilled 32 holes with significant results such as 32.4 g/t Au over 2m ; 958.4 g/t Au over 1m; 38 g/t Au over 2.5m; 39 g/t Au over 3.9m; 19.9 g/t Au over 3m; 125.9 g/t Au over 1m; 14.4 g/t Au over 3.1m; and 16 g/t Au over 3.1m. The company plans are to re-assay historic drill core to prepare a JORC compliant mineral resource estimate and then to test the upside potential at under explored areas.

ON SOCIAL RESPONSIBILITY

  • Fresnillo plc, seeks to promote knowledge about COVID-19 among its employees and train them to carry out all the actions and measures necessary to prevent the spread of the virus in their homes, community and in the company.

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

On the picture above, a hydrothermal breccia related to an epithermal system in a prospect in Chihuahua, Mexico.  Photo by Miguel A Heredia.

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

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Phyllic alteration

By Miguel A Heredia

During the thirty three week of the year (August 10th to August 16th, 2020), at least 43 press releases were announced by companies working in Mexico, with twelve disclosing deals and corporate issues, seven announcing financial rounds, six communicating production and financial results, six informing on exploration results, five reporting on resources and development of their mine operations, four discussing social issues, and three commenting on Mexican issues. ON MEXICO ISSUES, Mining drives the economy of the municipalities of Santa Barbara and San Francisco del Oro, Chihuahua. The Undersecretary of Mining, Francisco Quiroga and the Major of Progreso, Coahuila, Federico Quintanilla started up the modern “La Esperanza” locomotive at the Santa Barbara mine, with the purpose of promoting a fair and safe reactivation of coal orders that will be transformed into jobs for this municipality. Mexican Au production will suffer declines due to COVID-19 pandemic.  ON EXPLORATION, In Sonora, Colibri Resource began a high resolution mag survey at its Evelyn project, its JV partner Silver Spruce commenced a mapping and sampling program at its El Mezquite, and Silver Tiger reported underground channel sampling results from its El Tigre project. In Chihuahua, Kootenay presented drill results from 4 holes collared at its Columba project. In Sinaloa, GR Silver released drill results from 14 holes drilled by previous companies at its Plomosas project but not previously released, and Vizsla reported a second discovery drilling at its Panuco project.  ON MINING, Argonaut, Equinox, GoGold, MAG Silver, and Santacruz Silver presented Q2, 2020 production and financial results from their Mexican mine operations; Starcore presented Q1, 2021 production and financial results from its San Martin mine in Queretaro.  ON FINANCING, Canuc closed a non-brokered private placement for gross proceeds of $225K (San Javier project, Sonora). Discovery Metals closed a non-brokered private placement for gross proceeds of CAD $35M, including CAD $15M investment from Eric Sprott (Cordero project, Chihuahua).  Orex Minerals announced a non-brokered private placement offering for aggregate gross proceeds of up to $5.5M (Sandra and Coneto projects, Durango). One World Lithium closed a portion of its previously announced non-brokered private placement raising gross proceeds for CAD $336K (Salar del Diablo project, Baja California). Silver Spruce announced a private placement financing for gross proceeds of up to $1.6M (El Mezquite project, Sonora).  Sonoro Metals closed a non-brokered private placement financing for gross proceeds of $8M including the fully subscribed overallotment option (Cerro Caliche project, Sonora). Sable Resources entered    into an agreement with Sprott Capital for a private placement financing for gross proceeds of up to CAD $5M (Margarita project, Chihuahua). ON RESOURCES AND DEVELOPMENT, SilverCrest released drill results from its Las Chispas project. Golden Minerals announced results from 9 diamond holes of its in-fill resource definition drill program at its Rodeo project in Durango. Coeur provided mid-year 2020 exploration update on its Palmarejo project in Chihuahua. SilverCrest provided an update of the activities carried out at its Las Chispas project in Sonora during the period H1, 2020. Orla Mining received from the Mexican Federal Environmental Department (“SEMARNAT”), the environmental permit required for the development of its Camino Rojo project in Zacatecas.   ON DEALS AND CORPORATE ISSUES, Brigadier signed a definitive agreement to acquire Picachos property in Sinaloa, including the past producing San Agustin mine, and made the appointment of a new member to its board of directors.  Magna Gold entered into a definitive option agreement with a private party to acquire a 100% undivided interest in the Los Muertos property in Sonora. Silver Dollar signed a definitive agreement with First Majestic to acquire up to a 100% interest in the La Joya property in Durango. Alien appointed IBK Capital Corp to assists it with the project level funding and JV process for its Donovan 2 project in Zacatecas. Avino has granted the exclusive right to Gray Rock Resources to acquire a 100% interest in the Ana Maria and Laberinto properties in Durango. Evrim reported results from its annual general meeting of shareholders, and approved the merger with Renaissance Gold (Ermitaño project, Sonora).  Excellon announced results from its 2020 annual general meeting of shareholders (La Platosa mine, Durango). Riverside completed the spin-out of shares of Capitan Mining Inc. (Peñoles mining district, Durango). Monarca closed the sale of the El Sol project in Durango to Southern Silver and appointed a new member to its board of directors (Tejamen project, Durango). Minera Alamos granted stock options to an officer of the company (Santana project, Sonora).  ON SOCIAL RESPONSIBILITY, Minera Media Luna (Torex Gold), inaugurated a waste water treatment system at Cocula municipality of Guerrero. Grupo Mexico Foundation donated seven assisted breathing ventilators, as well as personal protection equipment for ambulances from the Ministry of Health of Coahuila. Personnel of Fresnillo plc will carry out rapid tests of COVID-19 in the communities and neighborhoods near the area of operation of the mines in the Fresnillo district.

ON MEXICO ISSUES

  • Mining drives the economy of the municipalities of Santa Barbara and San Francisco del Oro, Chihuahua. The main source of employment in Santa Barbara and San Francisco del Oro is mining. If not, these two towns could become “ghost” cities. Currently these two areas of the south of the state have prospered thanks to the establishment of mining companies that have taken advantage of the resources from their respective foundations, which were precisely constituted by the discovery of mines at the time of the Viceroyalty and until now they continue operating.
  • The Undersecretary of Mining, Francisco Quiroga and the Major of Progreso, Coahuila, Federico Quintanilla started up the modern “La Esperanza” locomotive at the Santa Barbara mine, with the purpose of promoting a fair and safe reactivation of coal orders that will be transformed into jobs for this municipality. In meeting with the Undersecretary of Mining, the mayor explained the need to request coal orders from the Federal Electricity Commission (CFE) to ensure investment and, above all, return employment to hundreds of families who depend on this activity in the municipality of Progress, Coahuila.
  • Mexican Au production, will suffer a decrease of more than 300K Oz in Au production this year due to the COVID-19 pandemic. The figure represents 9.3% of the 3.46M Oz Au of the production originally projected for 2020, according to BNamericas’ forecast and estimates for 20 companies in March, 2020. Mexico produced 126,607 Oz Au in May, 37.5% less than the same month last year, according to the national Institute of Statistics and Geography (INEGI).

ON EXPLORATION

  • Colibri Resource Corporation, began a high resolution mag survey at its Evelyn project in Sonora. The planned airborne magnetic survey will consist of 150 km in 59 N-S lines at 50m line spacing and 5 E-W tie-lines at 500m separation using a DRONE equipped with a Mag magnetometer. Results from this mag survey along with surface chip and channel samples, property wide soil sampling and previous drill results will be analyzed to plan drill targets for a fall 2020 drill program.
  • Silver Spruce Resources, has mobilized a crew to its El Mezquite property in Sonora to conduct geology mapping of the entire property and collect additional rock samples for analysis as well as for an study of alteration intensity and style using a Terraspec hyperspectral tool.
  • Silver Tiger Metals Inc., presented underground channel sampling results from its El Tigre project in Sonora. This sampling program is intended to generate drill targets. In the Fundadora Vein, highlights include 4.44 g/t Au and 3,064 g/t Ag (3,397 g/t AgEq) over a true width (TW) of 0.5m; 8.6 g/t Au and 2,500 g/t Ag (3,145 g/t AgEq) over a TW of 0.4m; and 22.3 g/t Au and 606 g/t Ag (2,278 g/t AgEq) over a TW of 1.2m. At Protectora Vein, highlights include 32.99 g/t Au and 2,283 g/t Ag (2,474 g/t AgEq) over a TW of 0.4m. At Caleigh Vein, highlights include 26.65 g/t Au and 1,679 g/t Ag (1,999 g/t AgEq) over a TW of 0.4m. At the Aquilas Norte area, sampling returned significant results such as 4.71 g/t Au and 1,709 g/t A (2,062 g/t AgEq) over a TW of 0.3m; and 1.37 g/t Au and 1,843 g/t Ag (1,946 g/t AgEq) over a TW of 0.3m.
  • Kootenay Silver Inc., presented drill results from additional four holes collared at its Columba project in Chihuahua in the J and Z Veins. Highlights include hole CDH-20-060 with 132 g/t Ag over a width of 64m, including two notable intervals: 1,025 g/t Ag over 1m within 226 g/t Ag over 9m, and 361 g/t Ag over 11m, including 608 g/t Ag over 5m, and 1,160 g/t Ag over 1m, all within 229 g/t Ag over 22m; and hole CDH-19-030 with 200 g/t Ag over 25.85m, including 415 g/t Ag over 11.15m, including 982 g/t Ag over 1.9m within 721 g/t Ag over 4.07m. The Ag mineralization in the J and Z Vein system is related to silicified breccias and thin quartz vein stockworks following classic banded quartz vein structures more characteristic of the F-Vein.
  • GR Silver Mining Ltd., announced drill results from 14 holes drilled by previous companies but not previously released from its Plomosas project in Sinaloa, revealing the presence of wide zones of Au mineralization in addition to attractive near surface Ag-Pb-Zn mineralization. Significant drill intercepts were encountered at hole PLSS18-02 with 0.2 g/t Au, 350 g/t Ag, 0.3% Pb, and 0.2% Zn (383 g/t AgEq) over a true width (TW) of 2m, including 0.5 g/t Au, 1,559 g/t Ag, 1.4% Pb, and 1.1% Zn (1,687 g/t AgEq) over a TW of 0.4m; hole 219 with 1.9 g/t Au, 191 g7t Ag, 7.1% Pb, and 3.4% Zn (716 g/t AgEq) over a TW of 4.4m, and hole 235 with 2.3 g/t Au, 134 g/t Ag, 0.1% Pb, and 2.4% Zn (437 g/t AgEq) over a TW of 0.8m; and hole 244 with 1.7 g/t Au, 17 g/t Ag and 0.7% Zn (209 g/t AgEq) over a TW of 12.6m. These drill results define a mineralized strike length of up to 700m, with field evidence and underground mapping indicating further continuity along strike and down dip.
  • Vizsla Resources Corp., reported a second discovery drilling at the San Carlos mine on the Animas Vein corridor within its Panuco project in Sinaloa. Highlights include hole AM-20-15 with 0.61 g/t Au and 93 g/t Ag (144.9 g/t AgEq) over 0.35m; and hole AM-20-16 with 1.14 g/t Au and 130 g/t Ag (229 g/t AgEq) over 16.25m, including 2.19 g/t Au and 231 g/t Ag (421 g/t AgEq) over 6.75m, including 5.08 g/t Au and 821 g/t Ag (1,245 g/t AgEq) over 1.50m. The San Carlos Mine is over 6 km east of the recent discovery at the Napoleon vein corridor.

ON MINING

  • Argonaut Gold Inc., announced Q2, 2020 production and financial results from their Mexican operations. At El Castillo mine in Durango, Argonaut processed 902K tonnes of 0.43 g/t Au to produce 9,151 Oz Au and 19,547 Oz Ag or 9,394 GEOs (Oz AuEq), at a cash cost of $862 per Oz Au sold. At San Agustin mine in Durango, the company processed 1.18M tonnes of 0.33 g/t Au to produce 13,403 Oz Au and 69,242 Oz Ag (14,288 GEOs) at a cash cost of $76 per Oz Au sold. The El Castillo complex (Castillo + San Agustin mines) produced 23,662 GEOs at a cash cost of $802 per Oz Au sold during Q2, 2020. At La Colorada mine in Sonora, Argonaut processed 506K tonnes of 0.42 g/t Au to produce 7,537 Oz Au and 26,554 Oz Ag (7,869 GEOs) at a cash cost of $1,169 per Oz Au sold.
  • Equinox Gold Corp., did not report production results by single operation but presented a consolidated production of 127K Oz Au from their mine operations and sold 125.8K Oz, having earnings of USD $85.1M, a net loss of USD $58.7M, and an adjusted net income of USD $26.6M. For Los Filos mine in Guerrero, most of the period Q2, 2020, the mine was on suspension due to the COVID-19 pandemic but the company provided a H2, 2020 guidance and expects to produce 90K-100K Oz Au at an AISC of USD $850-950 per Oz Au.
  • GoGold Resources Inc., presented financial results from its Parral Tailings project in Chihuahua for the period Q2, 2020. GoGold stacked 282.7K tonnes at a cash and AISC cost of USD $12.13 and USD $14.93 per Oz AgEq respectively. The company sold 469.5K Oz AgEq with revenue of USD $7.9M and a free cash of flow of USD $2.2M.
  • MAG Silver Corp., announced that underground production at its Juanicipio project in a JV with Fresnillo plc in Zacatecas is expected to commence soon. An anticipated processing of 16K tonnes per month from which 8,850 tonnes were successfully at the Fresnillo pant on a test basis while the Juanicipio plant is commissioned. The capex expended from January 1, 2018 to June 30, 2020 is approximately USD $172,695 leaving an estimated USD $267,305 of remaining initial capital (MAG’s 44% estimated remaining share is USD $117,614 as at June 30, 2020). This funding requirement would be reduced by both: existing cash held in Minera Juanicipio as at June 30, 2020 (USD$35,337); and, expected cash flows generated from mineralized rock sold and processed through the Fresnillo processing plant referenced above.
  • Santacruz Silver Mining ltd., reported Q2, 2020 production and financial results from its Mexican mine operations. Consolidated production results of Santacruz for the period Q2, 2020 resulted in 116,799 tonnes processed to produce 216K Oz Ag, 57 Oz Au, 679K Lb Cu, 1.68M Lb Pb, and 4.85M Lb Zn. At Zimapan mine in Hidalgo, the company processed 106,725 tonnes of 75 g/t Ag, 0.42% Cu, 0.7% Pb, and 2.5% Zn to produce 181.8K Oz Ag, 679K Lb Cu, 1.5M Lb Pb, and 4.45M Lb Zn. At Rosario mine in San Luis Potosi, Santacruz processed 10,074 tonnes of 0.25 g/t Au, 113 g/t Ag, 0.8% Pb, and 2% Zn to produce 57 Oz Au, 34.2K Oz Ag, 154K Lb Pb, and 392.4K Lb Zn.
  • Starcore International Mines Ltd., presented production results from its San Martin mine in Queretaro for the period Q1, 2021. Starcore processed 59.1K tonnes of 1.7 g/t Au and 29 g/t Ag at metallurgical recoveries of 88.77% and 56.53% respectively to produce 3,250 Oz AuEq.

ON FINANCING

  • Canuc Resources Corporation, closed a non-brokered private placement for gross proceeds of $275K. Net proceeds will be used for exploration at its San Javier project in Sonora.
  • Discovery Metals Corp., closed a non-brokered private placement for gross proceeds of CAD $35M, including CAD $15M investment from Eric Sprott. After this investment. Mr. Sprott will own approximately 26.4% interest in Discovery Metals on a non-diluted basis or 29.9% on a partially diluted basis assuming the exercise of warrants held by Mr. Sprott. Net proceeds will be used to fund Discovery´s continuing exploration programs at its Cordero project in Chihuahua and its other projects in Coahuila.
  • Orex Minerals Inc., announced a non-brokered private placement offering for aggregate gross proceeds of up to $5.5M (Sandra project. Durango). Mr. Eric Sprott intends to subscribe for the entirety of the offering. Net proceeds will be used for working capital requirements and other general corporate purposes (Sandra and Coneto properties in Durango).
  • One World Lithium Inc., closed a portion of its previously announced non-brokered private placement raising gross proceeds for CAD $336K. Net proceeds will be used primarily for funding part of its Salar del Diablo drilling program in Baja California and for working capital.
  • Silver Spruce Resources Inc., announced a private placement financing for gross proceeds of $1.6M. The proceeds will be used for exploration of the El Mezquite and Pino de Plata projects in Sonora and Chihuahua states respectively.
  • Sonoro Metals Corp., closed a non-brokered private placement financing for gross proceeds of $8M including the fully subscribed overallotment option. The Company plans to use the proceeds from the offering to launch Phase One of the 2020-21 Core Drilling Program to test its Cerro Caliche epithermal system’s potential to host high-grade gold mineralization at depth as discussed previously.
  • Sable Resources Ltd., entered into an agreement with Sprott Capital Partners LP as lead agent for a private placement financing for gross proceeds of up to CAD $5M. The offering is expected to close on or about September 10, 2020. Gross proceeds will be used for exploration and general corporate and working capital purposes (Margarita project, Chihuahua).

ON RESOURCES AND DEVELOPMENT

  • SilverCrest Metals Inc., released drill results from the Babi Vista Vein within its Las Chispas project in Sonora. This program is designed to expand and in-fill high grade mineralization to be included in the updated resource for the ongoing FS. The expanded high-grade footprint for Babi Vista is estimated at 800m along strike by an average 150m in height. The most significant results were encountered at hole BV20-60 with 635 g/t Au and 26,004 g/t Ag (73,595 g/t AgEq) over a true width (TW) of 1.3m; hole BV20-53 with 19.87 g/t Au and 2,996 g/t Ag (4,486 g/t AgEq) over a TW of 4.4m; and hole BV20-94 with 85.4 g/t Au and 4,716 g/t Ag (11,121 g/t AgEq) over a TW of 0.7m.
  • Golden Minerals Company, announced results from nine diamond holes of its in-fill resource definition drill program at its Rodeo project in Durango. Each of the first nine diamond drill holes intersected wide zones of near-surface gold mineralization, with significant drill intercepts encountered at hole RDO-20-001-M with 1.85 g/t Au and 11 g/t Ag over 45m, including 2.59 g/t Au and 13 g/t Ag over 29.44m, including 4.04 g/t Au and 20 g/t Ag over 13.23m; hole RDO-20-002 with 2.18 g/t Au and 7 g/t Ag over 35m, including 4.21 g/t Au and 5 g/t Ag over 9.9m, including 2.44 g/t Au and 2.44 g/t Au and 17 g/t Ag over 10.39m; hole RDO-20-003-M with 3.23 g/t Au and 11 g/t Ag over 40m, including 6.86 g/t Au and 16 g/t Ag over 12.95m, including 2.62 g/t Au and 15 g/t Ag over 10.85m; hole RD-20-004 with 1.27 g/t Au and 8 g/t Ag over 50m, including 3.33 g/t Au and 3 g/t Ag over 9.18m; hole RDO-20-005-M with 3.78 g/t Au and 18 g/t Ag over 40m, including 5.96 g/t Au and 20 g/t Ag over 23.4m; hole RDO-20-006 with 3.06 g/t Au and 9 g/t Ag over 30m, including 5.21 g/t Au and 10 g/t Ag over 15.5m, including 7.55 g/t Au and 11 g/t Ag over 8.11m; hole RDO-20-007 with 0.76 g/t Au and 3 g/t Ag over 50m, including 3.36 g/t Au and 7 g/t Ag over 7.2m; hole RDO-20-008 with 2.95 g/t Au and 10 g/t Ag over 40m, including 5.13 g/t Au and 15 g/t Ag over 20.5m, including 7.23 g/t Au and 24 g/t Ag over 9.6m; and hole RDO-20-009 with 1.51 g/t Au and 6 g/t Ag over 45m, including 2.67 g/t Au and 5 g/t Ag over 20.25m, including 3.32 g/t Au and 7 g/t Ag over 13.25m. Drill holes 001M, 003M and 005M were drilled with PQ drill-core to collect samples for metallurgical test work. Remaining drill holes were drilled with HQ drill-core.
  • Coeur Mining Inc., provided H1, 2020 exploration update on its Palmarejo project in Chihuahua. Exploration has been focused primarily on resource conversion and expansion drilling around the Guadalupe mine complex, and secondly on the Independencia mine complex. The company has drilled 29, 496m at a total investment of approximately $4.1M. At North Independencia, key drill results were encountered at hole VIDH-140 with 5.4 g/t Au and 236 g/t Ag over 5.3m and 21.4 g/t Au and 36 g/t Ag over 1.6m; at Northwest Independencia, hole VIDH-136 cut multiple intercepts: 4 g/t Au and 439 g/t Ag over 5.3m; 2.1 g/t Au and 293 g/t Ag over 6.6m; 1.8 g/t Au and 100 g/t Ag over 6.3m; 0.7 g/t Au and 282 g/t Ag over 3.6m; 2.9 g/t Au and 207 g/t Ag over 2.4m; and 4.8 g/t Au and 638 g/t Ag over 0.6m. At East Independencia, hole BVDH-047 intersected 1.4 g/t Au and 248 g/t Ag over 7.6m. Coeur has expanded the overall footprint in the district by mapping and sampling exposures of new veins SW and NE of the two underground mining complexes as well as new veins W and E of legacy open pit mine. It plans to continue aggressively drilling resource expansion targets in several areas during the remainder of 2020 and into 2021.
  • SilverCrest Metals Inc., provided an update on the activities developed at its Las Chispas project in Sonora in H1, 2020. The company completed 97,700m of in-fill and expansion drilling and completed approximately 2.1km of underground decline and lateral development, and stockpiled an additional 12K tonnes of mineralized material for a total stockpile of an estimated 41K tonnes at estimated diluted grade of 1Kg AgEq. SilverCrest expects to release a FS by the end of 2020.
  • Orla Mining Ltd., received from the Mexican Federal Environmental Department (“SEMARNAT”) the environmental permit required for the development of its Camino Rojo project in Zacatecas. Orla now has the two principal permits necessary for commencement of construction activities at Camino Rojo.

ON DEALS AND CORPORATE ISSUES

  • Brigadier Gold Ltd., signed a definitive agreement to acquire a 100% interest in the 3,954 ha Picachos property in Sinaloa, including the past producing San Agustin high grade Au mine. Picachos is along a large trend that host several precious metals epithermal vein systems and recently, a large porphyry copper target has been identified. To acquire 100% interest in the property, Brigadier has to make staged payments to the vendors totalling USD $275K over a 5-year period, issuance of 4M common shares of Brigadier, and cumulative exploration expenditures of USD $3,850,000. Brigadier will also make payments to the vendor for Picachos development milestones as to 1M common shares upon delineating a mineral resource estimate containing a minimum of 350K Oz Au in the inferred category, USD $725K and 1M common shares upon completion of a FS recommending the construction of a mine on the property, and USD $2M upon commencement of commercial production. In addition, Brigadier may, at its option, issue common shares, at the then current market price, subject to a minimum of $0.30 per share, in lieu of one half of the cash payments to be made pursuant to each of, and a 2% NSR will be retained by the vendor who is arm´s length to Brigadier. The company also announced the appointment of a new member to its board of directors.
  • Magna Gold Corp., entered into a definitive option agreement with a private party to acquire a 100% undivided interest in the Los Muertos property in Sonora. Los Muertos is characterized by extreme silicification, hematization, and argillic alteration, suggesting the potential for both extensive Ag-Au vein systems, and coincident, pervasive disseminated   Magna can earn a 100% undivided interest by paying an aggregate amount of USD $425K plus VAT in five annual installments commencing on the effective date of the agreement, August 3rd, 2020.
  • Silver Dollar Resources Inc., signed a definitive agreement with First Majestic to acquire up to a 100% interest in the La Joya property in Durango. The company may acquire an initial 80% interest by making staged payment totalling $1.3M over a 5-year period plus annual holding costs for the property, incurring exploration expenditures on the property of not less than $1M within 3 years, and issuing such number of common shares of the company as is equal to 19.9% of the then-issued and outstanding shares of Silver Dollar. . If Silver Dollar incurs at least $1,000,000 of exploration expenditures on the Property within three years of the date of the Definitive Agreement, First Majestic will waive the third- and fourth-anniversary cash option payments described above totalling $600,000. First Majestic will reserve a 2% NSR in all minerals produced from the property. Within 30 days after exercising its first option, Silver Dollar may exercise its second option and acquire the remaining 20% interest in the subsidiary that owns the La Joya Silver Project by delivering notice and issuing to First Majestic the number of shares as is equal to 5% of the then-issued and outstanding shares of Silver Dollar.
  • Alien Metals ltd., appointed IBK Capital Corp to assists it with the project level funding and JV process for its Donovan 2 project in Zacatecas. Its services include private placements of equity and debt instruments, with significant experience in the mining sector.
  • Avino Silver & Gold Mines Ltd., has granted the exclusive right to Gray Rock Resources Ltd., to acquire a 100% interest in the Ana Maria and Laberinto properties in Durango. In order to exercise the option, Gray Rock has to issue to Avino a total of $600k in cash or common shares: $50K in cash or shares within 30 days of the approval date; $50K in cash or common shares on or before the first anniversary of the approval date; $100K in cash or common shares on or before the second anniversary of the approval date; $200K in cash or common shares on or before the third anniversary of the approval date; $200K in cash or common shares on or before the fourth anniversary of the approval date; incur a total of $750K in exploration expenditures ($50K on or before the first anniversary of the approval date; 100K on or before the second anniversary of the approval date; and 600K on or before the fourth anniversary of the approval date). Gray Rock also granted Avino a right of first refusal on 60 days’ notice to Avino to purchase and process any ore or concentrate extracted from the properties under a custom milling contract at Avino’s mine facilities.
  • Evrim Resources Inc., reported results from its annual general meeting of shareholders, and approved the previously announced merger transaction with Renaissance Gold Inc Under the terms of the arrangement, each outstanding RenGold common share will be exchanged for 1.2448 Evrim common shares, which will result in RenGold shareholders immediately prior to the arrangement holding 50% of the issued and outstanding shares Evrim shares immediately following the arrangement.. Once the arrangement is completed, the company will change its name to Orogen Royalties Inc. (Ermitaño project, Sonora).
  • Excellon Resources Inc., announced results of its 2020 annual general meeting of shareholders, as well as the election of directors (La Platosa mine, Durango).
  • Riverside Resources Inc., completed the spin-out of shares of Capitan Mining Inc. Capitan and its shareholders will now hold 100% interest of the Au-Ag resource at the Peñoles project. Pursuant to the arrangement, holders of common shares of Riverside on August 13, 2020 will receive one new common share of Riverside and 0.2594 of a Capitan share for each common share held. The existing common shares of Riverside were delisted from the TSX Venture Exchange (TSXV) on August 13, 2020. Riverside shares commenced trading on the TSXV at the market opening on August 14, 2020.
  • Monarca Minerals Inc., closed the sale of the El Sol project in Durango to Southern Silver and appointed a new member to its board of directors. El Sol is a small mining concession of 63 ha adjacent to Southern Silver´s Cerro Minas project. The agreement is for USD $300K payable in three equal instalments on execution of a definitive agreement, twelve months and eighteen months together with retention by the Company of 2% NSR on production from the claim with a right in Southern Silver to purchase the royalty at any time for USD $1M. El Sol is a non-core asset for Monarca and net proceeds from the sell will be used to advance the company’s San Jose project in Chihuahua, Mexico and for general working capital.
  • Minera Alamos Inc., granted 600K options exercisable at a price of $0.67 to an officer of the company (Santana project, Sonora). The options will expire in five years.

ON SOCIAL RESPONSIBILITY

  • Minera Media Luna (Torex Gold), inaugurated a waste water treatment system at Cocula municipality of Guerrero. This system had an investment of MXP $6.3M and is part of the infrastructure endowment that the subsidiary mine of Torex Gold Resource planned for the relocation of said town in which 360 inhabitants live in 103 homes.
  • Grupo Mexico Foundation, donated seven assisted breathing ventilators, as well as personal protection equipment for ambulances from the Ministry of Health of Coahuila. In this way, the Ministry of Health of the Government of Coahuila guarantees high-quality advanced care, which can be offered from the place of the incident or report, to the transfer to the hospital for more personalized attention for COVID-19.
  • Personnel of Fresnillo plc, will carried out rapid tests of COVID-19 in the communities and neighborhoods near the area of operation of the mines in the Fresnillo district.

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

On the picture above, phyllic alteration in a porphyry Cu system in a prospect in Puebla, Mexico.  Photo by Miguel A Heredia.