Pre-Feasibility Study

The Mining and Exploration News in Mexico: Highlights on the Third Week of April, 2024

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Quartz Vein with Sulphides

By Miguel A Heredia

During the 16th week of the year (April 15th to April 21st, 2024), at least 31 press releases were announced by companies working in Mexico, with seven reporting resources and development of their properties, six  announcing financing rounds, six informing on exploration results, six communicating production results, five disclosing deals and corporate issues, and one commenting on Mexican issues.  ON MEXICO ISSUES, Fortuna Silver, Prime Mining, Silver Tiger, Goldgroup, and Impact Silver reported the best drilling intercepts in Mexico on the third week of April, 2024. ON EXPLORATION, In Sonora, Tocvanhas discovered an expansive set of mineralized trends of veining and epithermal style alteration with elevated Au, Ag, As, Sb, Pb and Zn in its Greater Pilar gold-silver project, and Silver Spruce along with its JV partner Colibri announced the commencement of the 2024 drilling program at Diamante project. In Chihuahua, Kingsmen has reported high-grade samples from the Soledad II vein structure on the Las Coloradas project. In Sinaloa, Vizsla entered into an agreement to acquire two large claims comprising 10,667 hectares. In Durango, Silver Dollar reported surface sampling results from its Nora property. In Zacatecas, Defiance announced that it has delineated a high grade polymetallic and precious metal systems at its Lucita project. ON MINING, Bear Creek, Impact Silver, First Majestic, Avino, Gold Resource, and Sierra Metals reported production and/or financial results from their Mexican mine operations. ON FINANCING, Infinitum Copper announced completion of share consolidation and provided an update on private placement (La Adelita project, Sonora). Minaurum reported a brokered private placement for gross proceeds of up to CAD $6M (Alamos Silver project, Sonora). Reyna Silver announced a non-brokered Listed Issuer Financing Exemption (LIFE) for gross proceeds of CAD $1M (Guigui and Batopilas projects, Chihuahua). Vortex increased its previously announced non-brokered private placement to up to $1.75M (Riqueza Marina and Zaachila projects, Oaxaca). Capitan Silver closed its private placement of common shares for gross proceeds of CAD $2M (Cruz de Plata project, Durango).  Tocvan filed an amendment and restated offering document in connection with its previously announced non-brokered private placement (Pilar project, Sonora). ON RESOURCES AND DEVELOPMENT, Fortuna Silver reported drill results on its Yessi exploration program at the San Jose mine in Oaxaca.  Minera Alamos provided an operations update on its Santana mine in Sonora. Prime Mining reported generative drilling results from its Los Reyes project in Sinaloa. Guanajuato Silver filed updated technical reports on SEDAR+ (Valenciana, San Ignacio, and El Cubo in Guanajuato and Topia in Durango). Silver Tiger provided an update on the pre-feasibility study drilling program on the Stockwork gold deposit on its El Tigre project in Sonora. Goldgroup reported drill results from its Cerro Prieto property, Sonora. Impact Silver reported results from its ongoing drilling program at the Tres Amigos Zone at its Plomosas mine, Chihuahua.  ON DEALS AND CORPORATE ISSUES, Quetzal Copper announced the acquisition of Las Cristinas project, Chihuahua. Xali signed a letter of intent to enter a purchase agreement with Kappes, Cassiday & Associates on the Mexican Mine Tailings Reprocessing Project at El Oro in Mexico State. Solaris Resources received approval to list its common shares on the New York Stock Exchange (NYSE) (La Verde property, Michoacan). Silver Bull reported results from its annual general meeting of shareholders (Sierra Mojada project, Coahuila). Endeavour announced the appointment of a new member to its Board of Directors (Terronera, Jalisco).  ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUE

  • Fortuna Silver, Prime Mining, Silver Tiger Metals Inc., Goldgroup, and Impact Silver reported the best drilling intercepts in Mexico on the third week of April, 2024. Details are shown in the table below:

ON EXPLORATION

  • Tocvan Ventures Corp., has discovered an expansive set of mineralized trends and an area of 1,500m by 800m of veining and epithermal style alteration with elevated Au, Ag, As, Sb, Pb and Zn in its Greater Pilar gold-silver project in Sonora. The sampling has identified the source rocks for placer mining activity and expanded the known footprint of mineralization of the Greater Pilar system. Highlights from sampling include 7.3 g/t Au with 177 g/t Ag; 5.5 g/t Au with 80 g/t Ag; and 1.8 g/t Au with 389 g/t Ag. The area has seen no previous systematic exploration and remains open to the east and the north. The company plans to evaluate these areas and prepare a drilling plan to test the targets. The Pilar property is interpreted as a structurally controlled low-sulfidation epithermal system hosted in andesite rocks that has returned some of the region’s best drill results.
  • Silver Spruce Resources Inc., along with its JV partner Colibri Resource Corporation announced the commencement of the 2024 drilling program at Diamante project in Sonora. It will test the Pillado polymetallic target and will consist of 1,050m in ten core holes.
  • Kingsmen Resources Ltd., has reported high-grade samples from the Soledad II vein structure on the Las Coloradas project in Chihuahua, detecting both gold and silver mineralization. A total of 32 residual mineralization samples were tested, with four areas of “high-grade silver mineralization” detected on the main Soledad II structure and one on a NE-cross structure. Highlights include 9 samples with > 300 g/t AgEq;  4 > 200 g/t AgEq;  3 > 100 g/t AgEq; and  8 > 0.58 g/t Au. The mineralization is likely to extend below a water table at a depth of around 125 metres, and blind extensions to the existing mineralized structures and new structures could be probable at depth.
  • Vizsla Silver Corp., entered into an agreement to acquire El Richard and San Enrique (San Enrique prospect), two large claims comprising 10,667 hectares located south and partially adjacent to the company’s Panuco project in Sinaloa. The area shows promising geological features such as dome complexes, quartz veining, and breccias. With preliminary geophysical surveys completed, Vizsla Silver plans to conduct further exploration activities to aid in drill targeting. This acquisition aligns with the company’s strategy to expand its presence in the Sinaloa Silver Belt and enhance its exploration portfolio. The San Enrique prospect offers significant upside potential and complements Vizsla Silver’s existing projects in the region, positioning the company as a key player in silver exploration and development in Mexico. Pursuant to the acquisition agreement, the company has agreed to issue an aggregate of USD $650K in common shares in the capital of the company, at the exchange rate and market price applicable on the effective date, plus any applicable value added tax to the seller.
  • Silver Dollar Resources Inc., reported surface sampling results from its Nora property in Durango. Highlights include twenty one samples grading over > 100 g/t Ag; ten samples > 200 g/t Ag; four samples > 500 g/t Ag; and two samples > 1,000 g/t Ag. Sample R-053 returned 29.61 g/t Au over 0.35m, confirming the presence of high-grade gold in the Candy vein structure. Sample RM-1009 returned 2,215 g/t Ag over 0.8m, and sample RM-1013 retuned 1,212 g/t Ag over 1m, confirming the presence of high-grade silver in the Candy vein structure. Five samples returned grades > 1% Cu, with two > 3% Cu. Elevated levels of Zn (seven samples > 1% Zn) and Pb (twenty samples > 1% Pb) are also encouraging as they seem to be the best pathfinders for geochemistry.
  • Defiance Silver Corp., announced that it has delineated a high grade polymetallic and precious metal systems at its Lucita project in Zacatecas. Lucita North showcases polymetallic mineralization with high-grade silver and anomalous to high-grade lead, zinc, gold, and copper. The Gloria-Aurora-Plomosa system is a key target due to its significant surface geochemical anomalies. Individual surface sampling highlights include Gloria Zone sample 430012 with 331 g/t Ag, 0.15 Au, 6.9% Pb, 14.7% Zn, and 0.35% Cu; sample 430009 with 552 g/t Ag and 1.34% Pb; Aurora Zone sample 430179 with 298 g/t Ag, 3.15% Pb, and 0.1% Zn; sample 430027 with 795 g/t Ag; Plomosa Zone sample 430106 with 652 g/t Ag, 0.32 g/t Au, 6.5% Pb, 2.3% Zn, and 0.0% Cu; Lucero Vein sample 110785: 460 g/t Ag, 4.76 g/t Au, 6.3% Pb, 31.5 % Zn, and 0.87% Cu. Lucita South features low-sulfidation epithermal vein systems with high-grade silver and gold. Individual surface sampling highlights include Paty Vein sample 4208 with 2,350 g/t Ag and 0.27 Au; Lucita Vein sample 110895 with 497 g/t Ag and 1.28 g/t Au; and Palenque Vein sample 110834 with 712 g/t Ag and 0.26 g/t Au.

ON MINING

  • Bear Creek Mining Corporation reported Q1, 2024 production results from its Mercedes mine in Sonora. The company mined 106,365 tonnes and processed 109,880 tonnes of 3.69 g/t Au with metallurgical recoveries of 94% to produce 12,128 Oz Au and 44,040 Oz Ag.
  • Impact Silver Corp., reported year-end 2023 production and financial results from its Zacualpan mining district, Mexico State and Plomosas mine, Chihuahua. At Zacualpan mining district, the company milled 147,444 tonnes of 160 g/t Ag to produce 637,514 Oz Ag and sold 636,655 Oz Ag and 780 Oz Au. It reported revenue of $136.62 per tonne sold and direct costs of $130.58 per production tonne. At Plomosas, the company reported 3,744 tonnes of 13.8% Zn during Q4, 2024 after acquiring the mine and reported revenue of $141.51 per tonne milled. Impact also reported 2023 consolidated results reporting $20-8M in revenue; an operation loss of 0.6M; after investing exploration expenditures of $8.5M; and net loss of $7.6M. The company has no long-term debt.
  • First Majestic Silver Corp., announced Q1, 2024 production results from their Mexican mines. The table below shows mine by mine production:

The company is planning to release its first quarter 2024 unaudited financial results and announce details regarding its first quarter dividend payment on May 8, 2024.

  • Avino Silver & Gold Mines Ltd., reported Q1, 2024 production results from its Avino mine, Durango. The company milled 169,595 tonnes of 52 g/t Ag, 0.47 g/t Au, and 0.43% Cu with metallurgical recoveries of 88%,70%, and 84% respectively, to produce 250.&K Oz Ag, 1,788 Oz Au, and 1.35M Lb Cu (629.3K Oz AgEq).
  • Gold Resource Corporation announced Q1, 2024 production results from its Arista mine, Oaxaca. The company milled 116,616 tonnes of 2.51 g/t Au, 109 g/t Ag, 0.45% Cu, 1.6% Pb, and 4.3% Zn to produce 7,676 Oz Au, 370,768 Oz Ag, 909,400 Lb Cu, 2,963,520 Lb Pb, and 9,403,520 Lb Zn and sold 3,557 Oz Au, 216,535 Oz Ag, 501,360 Lb Cu, 1,494,080 Lb Pb, and 3.767,680 Lb Zn at average metal prices realized of USD $2,094 per Oz Au, USD $23 per Oz Ag, USD $8,546 per tonne Cu, USD $1,977 per tonne Pb, and USD $2,482 per tonne Zn.
  • Sierra Metals Inc., reported Q1, 2024 production results from its Bolivar mine in Chihuahua. The company processed 398,230 tonnes of 0.98% Cu, 20 g/t Ag, and 0.47 g/t Au with metallurgical recoveries of 92.66%, 81.46%, and 66.54% respectively to produce 7.96M Lb Cu, 204K Oz Ag, and 4K Oz Au.

ON FINANCING

  • Infinitum Copper Corp., announced completion of share consolidation and provided an update on private placement. Infinitum Copper Corp. has successfully completed a share consolidation, with a ratio of two pre-consolidation common shares for one post-consolidation common share. This consolidation will reduce the total number of outstanding common shares from 74,563,040 to approximately 37,281,520. The move aims to enhance the company’s flexibility and attractiveness to a wider investor base. The company’s securities will trade under the symbol “INFI” on the TSX Venture Exchange, signifying increased market appeal. Additionally, the company will provide further updates on its private placement following the consolidation (La Adelita project, Sonora).
  • Minaurum Gold Inc., reported a brokered private placement for gross proceeds of up to CAD $6M from the sale of 24M units of the company at a price of CAD $0.25 per unit. Each unit will consist of one common share of the company and one half of one common share purchase warrant. The company intends to use the net proceeds from the offering to complete a National Instrument 43-101 resource at the Alamos Silver project, to continue exploration drilling and for working capital and general corporate purposes.
  • Reyna Silver Corp., announced a non-brokered Listed Issuer Financing Exemption (LIFE) for gross proceeds of up to CAD $1M from the sale of 6.25M units at a price of CAD $0.16 per unit. Each unit will consist of one common share of the company and one common share purchase warrant. Part of the gross proceeds will be used for the exploration of Guigui and Batopilas projects, Chihuahua. 
  • Vortex Metals Inc., increased its previously announced non-brokered private placement to up to $1.75M from the sale of 19,444,444 units at a price of $0.09 per unit. Each unit will be comprised of one common share in the capital of the company and one-half of one non-transferable common share purchase warrant (Riqueza Marina and Zaachila projects, Oaxaca).
  • Capitan Silver Corp., closed its private placement of common shares for gross proceeds of CAD $2,020,000 from the sale of 13,466,667 shares at a price of CAD $0.15 per share. Gross proceeds will be used to continue to advance the Cruz de Plata gold-silver project in Durango, evaluate potential acquisitions as well as to fund working capital and general corporate expenses.
  • Tocvan Ventures Corp, filed an amendment and restated offering document in connection with its previously announced non-brokered private placement pursuant to the listed issuer financing exemption under Part 5A of National Instrument 45-106. The amended document was redated after the company addressed regulatory comments regarding available working capital. The company expects to close the offering within the upcoming days, subject to obtaining all necessary corporate and regulatory approvals. 

ON RESOURCES AND DEVELOPMENT

  • Fortuna Silver Mines Inc., reported drill results on its Yessi exploration program at the San Jose mine in Oaxaca. Drilling highlights (true width reported) include holes SJO-1444 with 6.68 g/t Au and 793 g/t Ag (1,327 g/t AgEq) over 3m, including 27.15 g/t Au and 2,963 g/t Ag (5,135 g/t AgEq) over 0.3m; hole SJO-1447 with 1.41 g/t Au and 182 g/t Ag (295 g/t AgEq) over 4.8m, including 1.62 g/t Au and 244 g/t Ag (374 g/t AgEq) over 0.65m, including 5.76 g/t Au and 880 g/t Ag (1,341 g/t AgEq) over 0.50m; hole SJO-1455A with 0.9 g/t Au and 107 g/t Ag (179 g/t AgEq) over 17.5m, including 1.25 g/t Au and 135 g/t Ag (236 g/t AgEq) over 7.7m, plus 1.73 g/t Au and 196 g/t Ag (335 g/t AgEq) over 2m, including 2.89 g/t Au and 335 g/t Ag (366 g/t AgEq) over 1m, plus 1.22 g/t Au and 162 g/t Ag (260 g/t AgEq) over 1.1m, including 7.21 g/t Au and 417 g/t Ag (1,494 g/t AgEq) over 0.1m; hole SJO-1458 with 2.11 g/t Au and 284 g/t g (453 g/t AgEq) over 4.8m, including 2.61 g/t Au and 285 g/t Ag (494 g/t AgEq) over 0.4m, including 4.32 g/t Au and 644 g/t Ag (990 g/t AgEq) over 0.7m, including 4.59 g/t Au and 508 g/t Ag (875 g/t AgEq) over 0.7m, including 3.19 g/t Au and 478 /t Ag (733 g/t AgEq) over 0.8m; and hole SJO-1460 with 1.16 g/t Au and 98 g/t Ag (191 g/t AgEq) over 1,3m, plus 6.29 g/t Au and 533 g/t Ag (1,036 g/t AgEq) over 8.10m, including 3.67 g/t Au and 531 g/t Ag (825 g/t AgEq) over 1m, including 18.41 g/t Au and 1,437 g/t Ag (2,910 g/t AgEq) over 2.4m. “Drilling on the Yessi vein has continued with the dual objectives of firstly testing for the limits of the Yessi vein and secondly infilling the drill spacing to support initial resource estimation and mining studies”.
  • Minera Alamos Inc., provided an operations update on its Santana mine in Sonora. The company is progressing with the operational ramp-up at its Santana gold mine in Sonora, Mexico. The contractor has mobilized at the mine site, preparing for mining activity at the Nicho Main zone. Equipment maintenance and road preparation are underway to enhance operational flexibility. New sampling procedures and controls are being implemented to optimize conditions for the Nicho Main zone, with a focus on maximizing gold recoveries. The company is also testing a new dust suppressant system to improve air quality and reduce water consumption. Overall, the mining plans at the Nicho Main zone aim to increase mining and stacking activities, with initial benefits expected in Q3 of 2024.
  • Prime Mining Corp., reported drilling results from its Los Reyes project in Sinaloa. These results are from 2024 drilling at the Las Primas generative target. Highlights include (true widths reported) holes 24LP-30 with 0.8 g/t Au and 75 g/t Ag (1.77 g/t AuEq) over 9.6m, including 1.73 g/t Au and 182 g/t Ag (4.08 g/t AuEq) over 2.8m, plus 1.09 g/t Au and 96 g/t Ag (2.33 g/t AuEq) over 2.2m, including 1.49 g/t Au and 129 g/t Ag (3.16 g/t AuEq) over 1.3m, plus 1.26 g/t Au and 75 g/t Ag (2.23 g/t AuEq) over 5.7m, including 4.99 g/t Au and 278 g/t Ag (8.59 g/t AuEq) over 1.2m, plus 2.22 g/t Au and 187 g/t Ag (4.64 g/t AuEq) over 3m, plus 4.07 g/t Au and 598 g/t Ag (11.81 g/t AuEq) over 3m, including 6.77 g/t Au and 1,007 g/t Ag (19.8 g/t AuEq) over 1.7m; hole 24LP-33 with 0.58 g/t Au and 53 g/t Ag (1.27 g/t AuEq) over 7m, including 1.6 g/t Au and 201 g/t Ag (4.2 g/t AuEq) over 1.6m, plus 1.44 g/t Au and 153 g/t Ag (3.42 g/t AuEq) over 9.4m, including 1.94 g/t Au and 196 g/t Ag (4.48 g/t AuEq) over 5m, and including 1.57 g/t Au and 201 g/t Ag (4.17 g/t AuEq) over 1.5m, plus 0.92 g/t Au and 80 g/t Ag (1.96 g/t AuEq) over 5.7m, including 2.63 g/t Au and 245 g/t Ag (5.8 g/t AuEq) over 1.6m, plus 0.68 g/t Au and 76 g/t Ag (1.67 g/t AuEq) over 3.8m, including 1.31 g/t Au and 148 g/t Ag (3.23 g/t AuEq) over 1.5; hole 24LP-24 with 0.83 g/t Au and 71 g/t Ag (1.75 g/t AuEq) over 3.7m; and hole 24LP-28 with 1.21 g/t Au and 42 g/t Ag (1.75 g/t AuEq) over 3.8m, including 1.78 g/t Au and 75 g/t Ag (2.75 g/t AuEq) over 2.1m.
  • Guanajuato Silver Company Ltd., filed updated National Instrument 43-101 technical reports on SEDAR+. The updated technical reports cover the Valenciana, San Ignacio, and El Cubo in Guanajuato, and Topia in Durango.
  • Silver Tiger Metals Inc., provided an update on the pre-feasibility study drilling program on the Stockwork gold deposit on its El Tigre project in Sonora. Drilling highlights include holes ET-23-527 with 0.55 g/t Au and 17 g/t Ag (0.78 g/t AuEq or 58 g/t AgEq) over 74m, including 0.90 g/t Au and 96 g/t Ag (2.19 g/t AuEq or 164 g/t AgEq) over 9.2m, including 1.04 g/t Au and 5 g/t Ag (1.11 g/t AuEq or 83 g/t AgEq) over 25.2m; hole ET-23-529 with 0.91 g/t Au and 6 g/t Ag (0.99 g/t AuEq or 74 g/t AgEq) over 42.5m, including 1.09 g/t Au and 7 g/t Ag (1.18 g/t AuEq or 89 g/t AgEq) over 33m, including 1.57 g/t Au and 1 g/t Ag (1.58 g/t AuEq or 119 g/t AgEq) over 8m, including 1.27 g/t Au and 11 g/t Ag (1.42 g/t AuEq or 106 g/t AgEq) over 18m; hole ET-23-530 with 0.51 g/t Au and 2 g/t Ag (0.54 g/t AuEq or 41 g/t AgEq) over 10.9m, plus 0.68 g/t Au and 4 g/t Ag (0.73 g/t AuEq or 55 g/t AgEq) over 56.9m, including 0.86 g/t Au and 5 g/t Ag (0.92 g/t AuEq or 69 g/t AgEq) over 27.7m, including 0.93 g/t Au and 6 g/t Ag (1.01 g/t AuEq or 76 g/t AgEq) over 18.7m; and hole ET-23-18 with 0.69 g/t Au and 5 g/t Ag (0.76 g/t AuEq or 57 g/t AgEq) over 19m, plus 0.40 g/t Au and 2 g/t Ag (0.43 g/t AuEq or 32 g/t AgEq) over 35m, plus 0.07 g/t Au and 67 g/t Ag (0.96 g/t AuEq or 72 g/t AgEq) over 16.9m, including 0.2 g/t Au and 487 g/t Ag (6.7 g/t AuEq or 502 g/t AgEq) over 2m, and 0.08 g/t Au and 102 g/t Ag (1.44 g/t AuEq or 108 g/t AgEq) over 3m. Silver Tiger has completed 23,000m of a 25,000m drilling program focused on expanding the Mineral Resource, up-grading the classification, completing metallurgical test work and geotechnical studies as it progresses from an exploration to a development project. The pre-feasibility study progress is on schedule for publication in H2-2024.
  • Goldgroup Mining Inc., reported drill results from its Cerro Prieto property in Sonora. To date there are 17 core holes in Nueva Esperanza Zone, of which 8 core holes have no economic value. Drilling highlights are shown in the table below:
  • Impact Silver Corp., reported results from its ongoing drilling program at the Tres Amigos Zone at its Plomosas mine, Chihuahua. Drilling highlights include holes TASC-24-28 with 10.2% Zn, 0.5% Pb, and 8 g/t Ag over 8.6m, including 14.7% Zn, 0.7% Pb, and 11 g/t Ag over 5.5m, including 23.6% Zn, 0.8% Pb, and 15 g/t Ag over 2.6m, including 30.1% Zn, 0.9% Pb, and 14 g/t Ag over 1.1m; hole TASC-24-29 with 10.5% Zn, 5.5% Pb, and 32 g/t Ag over 1.85m, including 17.9% Zn, 10.2% Pb and 5 g/t Ag over 1.5m; and hole TASC-24-32 with 4.2% Zn, 2.4% Pb, and 13 g/t Ag over 11.7m, including 30.1% Zn, 18% Pb, and 84 g/t Ag over 0.8m. “The Tres Amigos Zone remains open for expansion and drilling is continuing. High priority targets have been identified for drilling elsewhere on the property”.

ON DEALS AND CORPORATE ISSUES

  • Quetzal Copper Corp., announced the acquisition of Las Cristinas project, Chihuahua. The company entered into an agreement with Polaris Resources S.A. de C.V. (Property Vendors), to acquire all the issued and outstanding shares of Polaris and must make a USD $50K payment to Polaris by April 9, 2025. Quetzal will also assume the responsibility to make the underlying option payments on the Cristinas Project to the Property Vendors as follows: (i) cash payments of USD $100K on each of May 12, 2024, May 12, 2025, and May 12, 2026, to the Vendors; (ii) the issuance of USD $500K worth of common shares of Quetzal on each of May 12, 2025, May 12, 2026, and May 12, 2027, to the Vendors; and (iii) complete USD $1M in exploration on the Cristinas Project on or before December 31, 2025. 
  • Xali Gold Corp., signed a letter of intent (LOI) to enter a purchase agreement with Kappes, Cassiday & Associates (KCA) on the Mexican Mine Tailings Reprocessing Project at El Oro in Mexico State. In order to earn 100% interest in the El Oro Tailings Project, KCA has agreed to pay Xali Gold USD $25K on signing; an additional USD $25K three months after signing the LOI agreement; and USD $!00K six months after signing the LOI agreement. This agreement entails royalty payments, with KCA paying Xali Gold a gross royalty of 4% of sales income from gold and silver produced, with the option to buy a 1% royalty for USD $1M. KCA will also make minimum royalty payments until a total of USD $1M has been paid to Xali Gold. Additionally, KCA will pay the Municipality of El Oro an 8% Net Profits Interest on production. The project contains significant inferred resources of gold and silver. The agreement allows Xali Gold to pay outstanding mineral rights fees and fund exploration at the El Oro Project.
  • Solaris Resources Inc., received approval to list its common shares on the New York Stock Exchange (NYSE) under the symbol “SLSR”. Concurrent with the start of trading on the NYSE, the company’s common shares will cease trading on the OTCQB Venture Market (La Verde property, Michoacan).
  • Silver Bull Resources Inc., reported results from its annual general meeting of shareholders (Sierra Mojada project, Coahuila).
  • Endeavour Silver Corp., announced the nomination of a new member to its Board of Directors (Terronera, Jalisco).

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, quartz vein in an intermediate sulphidation epithermal vein system in a project in Sonora, Mexico. Photo taken by Miguel A Heredia.

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

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Chalcedonic quartz in a hot spring system

By Miguel A Heredia

During the 14th week of the year (April 1st to April 7th, 2024), at least 26 press releases were announced by companies working in Mexico, with nine announcing financing rounds, eight disclosing deals and corporate issues, five reporting resources and development of their projects, two communicating production results, one commenting on Mexican issues, and one informing on exploration results.  ON MEXICO ISSUES, Silver Tiger reported the best drilling intercepts in Mexico on the first week of April, 2024. ON EXPLORATION, In Chihuahua, Kootenay announced that drilling is underway for its Q1/Q2 diamond drilling campaign at its Columba project. ON MINING, Alamos announced that it plans to release its Q1, 2024 financial results on Wednesday 24, 2024 (Mulatos mine, Sonora). Guanajuato Silver reported consolidated production results for Q1, 2024 from their Mexican mining operations. ON FINANCING, Alamos and Argonaut closed their previously announced non-brokered private placement for gross proceeds to Argonaut of CAD $50M. GR Silver has successfully closed a settlement agreement with Mako, receiving a total payment of USD $960K. Prismo has completed its debt settlement with certain creditors of the company by issuing an aggregate of 2,833,690 common shares at a price of $0.17 per common share (Palos Verdes project, Sinaloa). Silver Viper announced a non-brokered private placement for gross proceeds of up to $4M (La Virginia project, Sonora). Sonoro Gold closed the final tranche of its over-subscribed non-brokered private placement for additional gross proceeds of CAD $616,079 (Cerro Caliche project, Sonora). Orion has entered into a block trade agreement, selling 62,400,000 CHESS depository interests (CDIs) over the common shares of Capstone Copper Corp. at a price of A $9.50 per CDI, resulting in gross proceeds of approximately A$ 592,800,000. Silver Storm closed the first tranche of a non-brokered private placement for gross proceeds of $1.47M, the same that later on was increased to up to $3M (La Parrilla mine, Durango).  ON RESOURCES AND DEVELOPMENT, Discovery Silver filed its NI 43-101 technical report & Feasibility Study on its Cordero Silver Project, Chihuahua. Tocvan and JV Colibri restarted drilling at Pilar project, Sonora. Silver Tiger provided an update on its Pre-Feasibility Study (PFS) mineral resource drilling program at its El Tigre Project in Sonora. First Majestic reported 2023 Mineral Reserves and Mineral Resource Estimate. ON DEALS AND CORPORATE ISSUES, Almaden confirmed delisting from NYSE American Stock Exchange and listing on OTCBQ marketplace (Ixtaca project, Puebla). Alamos announced that it will hold its annual general and special meeting of shareholders on Thursday May 23, 2024 (Mulatos mine, Sonora). Equinox reported that it will hold its annual general meeting of shareholders on Thursday, May 9, 2024 (Los Filos mine, Guerrero). Infinitum Copper announced the details of a proposed consolidation of its common shares (Adelita project, Sonora).  Luca Mining announced the appointment of its Vice President Finance (Campo Morado mine, Guerrero). Pantera Silver announced that it closed the amended agreement with respect to its right to acquire 100% ownership of the Nuevo Taxco property in Guerrero. Sierra Metals notified its intention to list on the Lima Stock Exchange (Bolivar mine, Chihuahua). Vizsla announced that it has granted 318,000 restricted share units to an officer of the company (Panuco project, Sinaloa). ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUE

  • Silver Tiger Metals Inc., reported the best drilling intercepts in Mexico on the first week of April, 2024. Details are shown in the table below:

ON EXPLORATION

  • Kootenay Silver Inc. announced that drilling is underway for its Q1/Q2 diamond drilling campaign at its Columba project, Chihuahua. The proposed program includes 15-17 drillholes for a combined 5,000m and is designed to expand upon previous intercepts along the highly prospective D-Vein target. The current drilling program is designed to extend the D-Vein in preparation of a follow up program of likely 15,000 meters, aimed to delineate a maiden resource expected in late 2024 which is dependent on additional drilling beyond the 5000-meter program and the financing it requires. The first assay results are expected in 4 to 6 weeks time.

ON MINING

  • Alamos Gold Inc., announced that it plans to release its Q1, 2024 financial results on Wednesday 24, 2024 (Mulatos mine, Sonora).
  • Guanajuato Silver Company Ltd. reported consolidated production results for Q1, 2024 from their Mexican mining operations (El Cubo, Valenciana and san Ignacio mine in Guanajuato; Horcon mine in Jalisco; and Topia mine in Durango). The company mined 167,287 tonnes and milled 165,079 tonnes to produce 428,279 Oz Ag, 5,384 Oz Au, 879,242 Lb Pb, and 922,297 Lb Zn (987,312 Oz AgEq).

ON FINANCING

  • Alamos Gold Inc. and Argonaut Gold Inc. closed their previously announced non-brokered private placement pursuant to which Alamos subscribed for 174,825,175 common shares of Argonaut, representing approximately 13.8% of Argonaut’s total outstanding common shares after giving effect to the private placement. The acquired shares were acquired at a price of CAD $0.286 per share, for gross proceeds to Argonaut of CAD $50M.
  • GR Silver Mining Ltd. has successfully closed a settlement agreement with Mako Mining Corp., receiving a total payment of USD $960K. This amount was satisfied by cash payment of USD $500K and the issuance of 296,710 common shares of Mako at a deemed price of %2.1007 per share (USD $460K or CAD $623,300). The shares will be subject to a four-month regulatory hold period from the date of issuance.
  • Prismo Metals Inc. has completed its debt settlement with certain creditors of the company by issuing an aggregate of 2,833,690 common shares at a price of $0.17 per common share to the creditors in full and final settlement of accrued and outstanding indebtedness. The company has also completed its previously announced non-brokered private placement for one subscription of 754,411 units of the company at a price of $0.17 per unit for total gross proceeds of CAD $128,250 (Palos Verdes project, Sinaloa).
  • Silver Viper Minerals Corp., announced a non-brokered private placement for gross proceeds of up to $4M, at a price of $0.10 per unit. Each unit will consist of one common share of the corporation and one-half of one common share purchase warrant. Each warrant will entitle the holder to purchase an additional share at a price of $0.15 per share for a period of thirty-six months from its date of issue. The company intends to use the minimum net proceeds of $2M from the offering for working capital requirements and other general corporate purposes which includes legal and financing fees as part of this offering, and the final USD $200K option payment on its La Virginia Project due in June 2024. Any additional net proceeds from the Offering will be used to continue surface exploration including mapping and sampling as well as a drill campaign at the La Virginia Project, Sonora.
  • Sonoro Gold Corp. closed the final tranche of its over-subscribed non-brokered private placement for additional gross proceeds of CAD $616,079. Gross proceeds will be used to fund the ongoing development of the Company’s Cerro Caliche gold project in Sonora project.
  • Orion Fund JV Limited, Orion Mine Finance Fund II LP and Orion Mine Finance have entered into a block trade agreement, selling 62,400,000 CHESS depository interests (CDIs) over the common shares of Capstone Copper Corp. at a price of A $9.50 per CDI, resulting in gross proceeds of approximately A$ 592,800,000. The Secondary Offering is expected to close on or about April 9, 2024 (Pacific Time). 
  • Silver Storm Mining Ltd. closed the first tranche of a non-brokered private placement for gross proceeds of $1.47M, the same that later on was increased to up to $3M at a price of 0.11 per unit. The company intends to use the net proceeds of the offering to advance drilling at its La Parrilla mine, to perform technical studies for a potential restart in 2025, and to fund ongoing operations.

ON RESOURCES AND DEVELOPMENT

  • Discovery Silver Corp., filed its NI 43-101 Technical Report & Feasibility Study dated February 16, 2024 on its Cordero Silver Project, Chihuahua.
  • Tocvan Ventures Corp. and JV Colibri Resource Corporation restarted drilling at Pilar project, Sonora. All past data has been reviewed in order to determine the most effective use of drill meters for the upcoming campaign. A plan to drill 7,000m has been designed, including 4,000m of infill drilling within known areas of mineralization and 3,000m of step-out and exploration drilling on drill areas with known mineralization and/or strong surface geochemistry suggesting highly prospective targets. “The outcome of the proposed drilling will go into the definition of a maiden resource estimate for the Pilar Main Zone, providing an important building block for the company”.
  • Silver Tiger Metals Inc., provided an update on its Pre-Feasibility Study (PFS) mineral resource drilling program at its El Tigre Project in Sonora. Silver Tiger has completed 22,000m of the 25,000m drilling program with promising results, including the high grade Keel zone. The company aims to expand the Mineral Resource and enhance the classification of the Stockwork gold deposit, completing metallurgical testwork and geotechnical studies as it progresses from an exploration to a development project. The value-added PFS progress is on schedule for publication in H2-2024. The company also announced a new set of assay results from 40 drill holes. Drilling highlights are shown in the table below:
  • First Majestic Silver Corp. reported 2023 Mineral Reserves and Mineral Resource Estimate. Figures are shown in the tables below:

Mineral Resource Estimates are inclusive of the Mineral Reserve Estimates.

ON DEALS AND CORPORATE ISSUES

  • Almaden Minerals Ltd., confirmed delisting from NYSE American Stock Exchange and listing on OTCBQ Marketplace in the US under symbol “AAUAF” (Ixtaca project, Puebla).
  • Alamos Gold Inc., announced that it will hold its annual general and special meeting of shareholders on Thursday May 23, 2024 (Mulatos mine, Sonora).
  • Equinox Gold Corp., reported that it will hold its annual general meeting of shareholders on Thursday, May 9, 2024 (Los Filos mine, Guerrero).
  • Infinitum Copper Corp., announced the details of a proposed consolidation of its common shares. Infinitum Copper Corp. It proposed a 2:1 share consolidation, aiming to enhance future financing opportunities and streamline operations. The consolidation will reduce the total number of common shares from 74,563,040 to 37,281,520, with no fractional shares issued (Adelita project, Sonora).
  • Luca Mining Corp., announced the appointment of its Vice President Finance, starting April 1, 2024 (Campo Morado mine, Guerrero).
  • Pantera Silver Corp., announced that it closed the amended agreement with respect to its right to acquire 100% ownership of the Nuevo Taxco property in Guerrero. Under amended terms, Pantera will issue 1.5M common shares in lieu of making a $150K final cash payment. A final share payment of 2M common shares will be due October 30th, 2024. Under the amended terms, the vendor has the option to accept the 2M shares or $150K cash plus 500K common shares. In addition, under the amended terms, all work commitments in the first two years of the original agreement have been met and any short fall has been waived. The timeline for completing the final work commitment of $800K has been extended to be completed by October30th, 2025.
  • Sierra Metals Inc., notified its intention to list on the Lima Stock Exchange. The process is expected to take up to four months to complete (Bolivar mine, Chihuahua).
  • Vizsla Silver Corp., announced that it has granted 318,000 restricted share units (RSU) to an officer of the company. The RSUs will vest in three equal annual installments commencing on the first anniversary of the grant date (Panuco project, Sinaloa).

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, chalcedonic quartz in a hot spring system in a project in Queretaro, Mexico. Photo taken by Miguel A Heredia.

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

/ gambusinoprospectormexico / Leave a comment

Rhyolite dike showing flow banded texture

By Miguel A Heredia

During the 8th week of the year (February 19th to February 25th, 2024), at least 29 press releases were announced by companies working in Mexico, with ten communicating production results, eight reporting resources and developments of their projects, five disclosing deals and corporate issues, four announcing financing issues, one commenting on Mexican issues, and one  informing on exploration results.  ON MEXICO ISSUES, Orla Mining, Silver Storm, and Prismo Metals reported the best drilling intercepts in Mexico on the fourth week of February, 2024. ON EXPLORATION, In Sonora, Prismo provided an exploration update on its Pavitos project. ON MINING, Aura reported Q4 and year-end 2023 production and financial results from its Aranzazu mine in Zacatecas, and provided guidance for 2024. Gatos Silver announced Q4 and year-end 2023 production and financial results from its Cerro Los Gatos mine, Chihuahua, and provided 2024 guidance. Capstone released Q4, 2023 production results from its Cozamin mine, Zacatecas. Alamos Gold announced Q4 and year-end 2023 production and financial results from its Mulatos mine, Sonora. Coeur reported Q4 and year-end 2023 production and financial results from its Palmarejo mine in Chihuahua.  Equinox provided 2024 production guidance for its Los Filos mine, Guerrero. Minera Alamos announced 2024 operational outlook for its Santana mine in Sonora. Torex reported Q4 and year-end 2023 production results from its El Limon-Guajes Mine Complex, Guerrero. First Majestic announced Q3 and year-end production and financial results from their Mexican operations. SilverCrest provided 2024 production guidance for its Las Chispas mine, Sonora. ON FINANCING, Kootenay closed the final tranche of its previously announced non-brokered private placement for gross proceeds of $237.5K to complete a total aggregate gross proceeds of $3.7M (Columba project, Chihuahua). Oroco announced the closing of a non-brokered private placement for net proceeds of $1M (Santo Tomas project, Sinaloa). Sonoran Dessert declared that in response to the continuing weakness in the junior resource sector, the company will be reducing the price and increasing the amount of its private placement financing. Vizsla announced $30M bought deal financing (Panuco project, Sinaloa). ON RESOURCES AND DEVELOPMENT, Vizsla filed an independent technical report containing an updated Mineral Resource Estimate on its Panuco project in Sinaloa. Luca reported significant improvements at its Campo Morado mine, Guerrero. Alamos Gold reported Mineral Resources and Reserves at its Mulatos mine operation in Sonora, as of December 31, 2023. Silver Storm released results from three holes drilled at its la Parrilla mine in Durango. Silver Tiger provided an update on the Company’s ongoing Pre-feasibility Study (PFS) drilling program on the Stockwork Gold Deposit on its El Tigre Project in Sonora. Orla discovered new style of mineralization at its Camino Rojo project in Zacatecas and recent drilling extended mineralization beyond the current mineral resource envelope, presenting a considerable opportunity for resource expansion. Prime Mining provided a summary of the 2023 exploration activities and  released the final 2023 drilling results for its Los Reyes Gold-Silver Project in Sinaloa. Discovery Silver announced results from the Feasibility Study (FS) on its Cordero project, Chihuahua.  ON DEALS AND CORPORATE ISSUES, Trident Royalties Plc, in a joint venture with Sonoroy Holdings Limited, is acquiring a 3.0% Gross Revenue Royalty over the Sonora Lithium Project in Mexico. Bear Creek announced the resignation of its CEO effective March 8, 2024, and later on appointed its successor (Mercedes mine, Sonora). DynaResource announced the resignation of two Directors and appointed two new members to its Board of Directors. The resignations and appointments are effective February 16, 2024 (San Jose de Gracia project, Sinaloa).  Tarachi notified that its CEO was elected to the Board of Directors (Magistral Mill & Tailings project, Durango). ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUE

  • Orla Mining Ltd., Silver Storm Mining Ltd., and Prismo Metals Inc., reported the best drilling intercepts in Mexico on the fourth week of February, 2024. Details are shown in the table below:

ON EXPLORATION

  • Prismo Metals Inc., provided an exploration update on its Pavitos project in Sonora. Prismo Metals has reported positive results from its ongoing exploration program at Los Pavitos, a 5,300 ha Project in southern Sonora State, Mexico. The 2023 exploration program included geologic mapping, sampling, and drilling that resulted in identifying 5 structures and positive results from 4 widely-spaced structures. The best results from the drilling were 2.6 g/t Gold over 0.5m and 1.18 g/t Gold over 0.5m at the Las Auras and Oromuri structures. In addition, a new zone with several structures was identified and sampled in the previously unexplored northeastern portion of the project area. Surface sampling along the northeastern projection of the gold and silver-rich Santa Cruz structure yielded high silver assay of 1,130 g/t Ag, with 1.33 g/t Au over 0.15 meters. Based on the exploration results, Los Pavitos gold footprint has grown 2.5 km to the northeast and silver footprint also grew 1 km.

ON MINING

  • Aura Minerals Inc., reported Q4 and year-end 2023 production and financial results from its Aranzazu mine in Zacatecas, and provided guidance for 2024. In Q4, 2023, the company produced at its Aranzazu mine 26,532 Gold Equivalent Ounces (GEO), for a total of 106,119 GEO. It also provided guidance for 2024 and estimate to produce between 94K-108K GEO at cash and all in sustaining costs of USD $826-1008 and USD $1,089-1,331 per Oz Au produced respectively.
  • Gatos Silver Inc., announced Q4 and year-end 2023 production and financial results from its Cerro Los Gatos mine, Chihuahua and provided 2024 guidance (the reported currency is USDS $). The company has a 70% interest in the Los Gatos JV. Los Gatos JV (100% basis) milled in Q4, 2023 a total of 277,318 tonnes of 318 g/t Ag, 3.9% Zn, 1.9% Pb, and 0.3 g/t Au to produce 2.6M Oz Ag, 14.6M Lb Zn, 10.2M Lb Pb, and 1.4K Oz Au (3.9M Oz AgEq) at cash and all in sustaining costs of $11.26 and $14.73 per Oz AgEq respectively ($6.02 and  $11.12 per Oz Ag). In the 2023 full year, the company milled a total of 1,071,400 tonnes of 299 g/t Ag, 3.9% Zn, 1.8% Pb, and 0.29 g/t Au to produce 9.2M Oz Ag, 57.3M Lb Zn, 38.9M Lb Pb, and 5.3K Oz Au (14.3M Oz AgEq) at cash and all in sustaining costs of $12.11 and $15.51 per Oz AgEq respectively ($6.31 and $11.33 per Oz Ag). Gatos Silver also reported for the period Q4, 2023 revenue of $73.5M; cost of sales of $28M; net income of $24.9M; EBIDTA of $38.6M; cash from operating activities of $38.2M; sustaining capital of $11.7M; and free cash flow of $22.3M. For the 2023 year full it reported revenue of $268.7M; cost of sales of $111.3M; net income of $53.4M; EBIDTA of $135.8M; cash from operating activities of $142M; sustaining capital of $41.6M; and free cash flow of $84.9M. The company expects to produce in 2024 between 8.4-9.2M Oz Ag, 61-69M Lb Zn, 40-46M Lb Pb, and 4.5-5.5K Oz Au (13-5-15M Oz AgEq) at a all in sustaining cost of $9.50-$11.50 per Oz Ag (or $14-$16 per Oz AgEq).
  • Capstone Copper Corporation released Q4, 2023 production results from its Cozamin mine, Zacatecas. The company processed 6,564 tonnes to produce 14.8M Lb Cu at a cash cost of USD $1.76 per Lb Cu produced. Capstone provided an outlook for 2024 and expects to produced between 49.3-53.8M Lb Cu at cash cost of USD $1.85-USD $2.05 per Lb Cu produced.
  • Alamos Gold Inc., announced Q4 and year-end 2023 production and financial results from its Mulatos mine, Sonora. During the period Q4, 2023, the company produced 48.1K Oz Au and sold 50,489 Oz Au. Alamos reported cost of sales of USD $68.3M; cost of sales per Oz Au sold (including amortization) of USD $1,353; total cash cost per Oz Au sold of USD $957; mine site all in sustaining cost (AISC) per Oz Au sold of USD $1,030; and a capital expenditure of USD $8.4M. For the year-end 2023, Alamos produced 212,800 Oz Au and sold 215,833 Oz Au. The company reported cost of sales of USD $265.9M; cost of sales per Oz Au sold (including amortization) of USD $1,232; total cash cost per Oz Au sold of USD $883; mine site AISC Oz Au sold of USD $967; and a capital expenditure of USD $30.4M. It also provided its 2024 guidance and expects to produce between 160-170K Oz Au at total and AISC of USD $925-975, and USD $1,000-1,050 per Oz Au sold respectively.
  • Coeur Mining Inc., reported Q4 and year-end 2023 production and financial results from its Palmarejo mine in Chihuahua. Highlights are provided below:
  • Equinox Gold Corp., provided 2024 production and cost guidance for its Los Filos mine, Guerrero. The company expects to produce 155K-175K Oz Au at cash costs of USD $1,785- $1,885 per Oz Au and AISC of USD $2,090- $2,190 per Oz Au.
  • Minera Alamos Inc., announced 2024 operational outlook for its Santana mine in Sonora. The company is looking forward to significant advancements at the Santana gold mine in 2024 after facing challenges in 2023. It plans to expand mining and stacking operations using the current permitted pad space while awaiting permit amendments for future expansion. The company is finalizing plans for the year, including discussions with their mining contractor and permit approvals. Advanced development activities have already begun at the Nicho Main zone to support the new operational plan. Upgrades to equipment and personnel are expected to increase production levels from 2023. “Approximately 20K Oz Au at an average grade of 0.63 g/t and an approximate strip ratio of 1.6:1has now been defined for mining and loading over a 12-month schedule utilizing the current leach pad installed capacity. Included in the current plan are an additional 4,500 Oz of higher grade (~1 g/t) mineralized material. Due to its elevated gold content, this mineralization will be stockpiled initially for future processing pending additional studies to determine an optimal approach for crushing and processing to maximize recoveries”.
  • Torex Gold Resources inc., reported Q4 and year-end 2023 production results from its El Limon-Guajes Mine Complex, Guerrero (all currency is reported in USD$). In Q4, 2023, the company produced 137,993 Oz Au and sold 138,794 Oz Au at an average realized gold price of $1,995, contributing to revenue of $282.4M. Total cash costs of $885 per Oz Au sold and all-in sustaining costs of $1,073 per Oz Au sold. Cost of sales was $191.6M or $1,380 per Oz Au sold. Torex reported net income of $50.4M, generated an EBITDA and adjusted EBITDA of $115.4M and $142.6M respectively. Net cash generated from operating activities totalled $120M and $133.5M before changes in non-cash operating working capital, including income taxes paid of $12M and negative free cash flow of $24.3M. In the full-year 2023, the company produced 453,778 Oz Au and sold 444,750 Oz Au at an average realized gold price of $1,952, contributing to revenue of $882.6M. Total cash costs of $866 per Oz Au sold and all-in sustaining costs of $1,200 per Oz Au sold. Cost of sales was $600.1M or $1,349 per Oz Au sold. Torex reported net income of $204.4M, generated an EBITDA and adjusted EBITDA of $422.6M and $442.2M respectively. Net cash generated from operating activities totalled $300.8M and $340.8M before changes in non-cash operating working capital, including income taxes paid of $116.2M and negative free cash flow of $185.4M.
  • First Majestic Silver Corp., announced Q3 and year-end production and financial results from their Mexican operations. Figures by separate mine are provided below:
  • SilverCrest Metals Inc., provided 2024 production guidance for its Las Chispas mine, Sonora. The company expects to produce between 9.8-10.2M Oz AgEq at cash and AISC of USD $9.5-$10 and USD $15-$15.90 per Oz AgEq sold respectively. Sustaining Capital of USD $40M-$44M will be largely related to underground development and underground infrastructure. An exploration budget within a range of USD $12M-$14M has been approved for 2024 with a focus on converting inferred resources to indicated for reserve consideration in proximity to existing or planned infrastructure, return to early stage exploration at Las Chispas, and regionally define new targets that could benefit mine life extensions.

ON FINANCING

  • Kootenay Silver Inc., closed the final tranche of its previously announced non-brokered private placement for gross proceeds of $237.5K to complete a total aggregate gross proceeds of $3.7M from the offering. Net proceeds will be used for exploration activities, property commitments on the Company’s projects, working capital and general corporate purposes (Columba project, Chihuahua).
  • Oroco Resource Corp., announced the closing of a non-brokered private placement for net proceeds of $1M through the sale of 2.57M units at a price of $0.4 per unit. Net proceeds will be used to continue improving various underlying aspects of the Company’s Preliminary Economic Assessment, including those relating to the Santo Tomas mine plan, together with property maintenance and corporate overhead.
  • Sonoran Dessert Copper Corporation declared that in response to the continuing weakness in the junior resource sector, the Company will be reducing the price and increasing the amount of its private placement financing. Previously, the company was offering up to 2.5M units priced at $0.20, for aggregate gross proceeds of up to $500K. The updated financing will now offer up to 10M units priced at $0.10, for aggregate gross proceeds of up to $1M. Proceeds from the financing will be used for general working capital, the continuing development of the company’s Cuatro Hermanos Copper Project in Sonora, and to evaluate and secure further opportunities in the copper sector.
  • Vizsla Silver Corp., announced $30M bought deal financing by selling 20M common shares at a price of $1.5 per common share. Net proceeds will be used to advance the exploration, drilling, and development of its Panuco project in Sinaloa, as well as for working capital and general corporate purposes.

ON RESOURCES AND DEVELOPMENT

  • Vizsla Silver Corp., filed an independent technical report containing an updated Mineral Resource Estimate on its Panuco project in Sinaloa.
  • Luca Mining Corp., reported significant improvements at its Campo Morado mine, Guerrero. Highlights include significantly improved overall performance in Q4, 2023 compared to previous quarters, yielding increased revenues; plant performance exceeded expectations with operational consistency; and higher metallurgical recoveries and concentrate grades, especially for copper in the bulk concentrate increasing from less than 48% recovery to over 70% recovery. Currently, Campo Morado produces a zinc concentrate, and a bulk copper-lead concentrate.
  • Alamos Gold Inc., reported Mineral Resources and Reserves as of December 31, 2023 for its Mulatos mine operation. Proven reserves are 1,032,000 of 3.98 g/t Au for a total of 132K Oz Au contained and probable reserves are 15,661,000 tonnes of 2.02 g/t Au for a total of 1.32M Oz Au contained. Proven + Probable reserves are 16,693,000 tonnes of 2.71 g/t Au for a total of $1.45M Oz Au contained. Mineral Resources are exclusive of Mineral Reserves, and the company reported measured resources for 1,333,000 tonnes of 1.76 g/t Au for a total of 76K Oz Au contained and indicated resources for 10,284,000 tonnes of 1.48 g/t Au for a total of 488K Oz Au contained. Measured + Indicated resources are 11,617,000 tonnes of 1.51 g/t Au for a total of 564K Oz Au contained. Inferred resources are 1,651,000 tonnes of 1.07 g/t Au for a total of 57K Oz Au contained.
  • Silver Storm Mining Ltd., released results from three holes drilled at the Quebradillas mine within its la Parrilla property in Durango. Drilling highlights include holes Q-23-022A with 64 g/t Ag, 0.16 g/t Au, 0.9% Pb, 16.7% Zn, and 0.21% Cu (535 g/t AgEq) over  0.55m, plus 498 g/t Ag, 0.08 g/t Au, 6.5% Pb, 8.5% Zn, and 0.06% Cu (911 g/t AgEq) over 13.65m, including 1,350 g/t Ag, 0.23 g/t Au, 2.1% Pb, 8.4% Zn, and 0.06% Cu (2,361 g/t AgEq) over 2.60m, and 674 g/t Ag, 0.06 g/t Au, 5.4% Pb, 16.2% Zn, and 0.06% Cu (1,266 g/t AgEq) over 2.15m; and hole Q23-023 with 124 g/t Ag, 0.16 g/t Au, 0.6% Pb, 7.2% Zn, and 0.07% Cu (347 g/t AgEq) over 9.65m, including 136 g/t Ag, 0.18 g/t Au, 0.4% Pb, 8.7% Zn, and 0.08% Cu (397 g/t AgEq) over 5.3m. “Combined, these two holes have demonstrated the mineralization extends 74 metres below the last mined stope (1767 EL), with higher grades and widths than what was previously mined in this area”. More drilling will be allocated in this location in 2024.
  • Silver Tiger Metals Inc., provided an update on the Company’s ongoing Pre-feasibility Study (PFS) drilling program on the Stockwork Gold Deposit on its El Tigre Project in Sonora. The PFS aims to de-risk the Stockwork Deposit through the 25,000m drilling program focused on increasing confidence of the Mineral Resource with in-fill drilling expansion and classification, metallurgical and geotechnical as it progresses from an exploration to a development project. The company expects the publication of the PFS in H2-2024, and it continues to work on a substantial, permitted underground Mineral Resource Estimate and advance towards a Preliminary Economic Assessment by H2-2024.
  • Orla Mining Ltd., discovered a new polymetallic sulphide replacement-style mineralization at its Camino Rojo project in Zacatecas and recent drilling extended mineralization beyond the current mineral resource envelope, presenting a considerable opportunity for resource expansion. The drill program involved over 2,600 meters of drilling across four holes, with significant mineralized intercepts up to 450 meters down-plunge of the existing open pit mineral resource boundaries. Drilling highlights are provided in the table below:

The company also reported positive initial metallurgical results and plans to complete a 30,000-meter drill program in 2024 to further explore the extensive potential of the growing Camino Rojo Deposit.

  • Prime Mining Corporation provided a summary of the 2023 exploration activities and   released the final 2023 drilling results for its Los Reyes Gold-Silver Project in Sinaloa.   The company completed 58,896m of drilling over 184 holes following success-based exploration program; 162 drill holes intercepted mineralization above approximately 0.2 g/t Au cutoff. The drilling outlined indicated resources of 1M Oz Au at 1.16 g/t and 35M Oz Ag at 40 g/t Ag (1.47M Oz AuEq at 1.16 g/t), and inferred resources of 0.5M Oz Au at 0.85 g/t and 18.4M Oz Ag at 31 g/t (0.77M Oz AuEq at 1.26 g/t). The company is focused on resource expansion through new discoveries and technical de-risking activities. Prime advanced the metallurgical, geochemical, geotechnical and project understanding through testwork and field studies.
  • Discovery Silver Corp., announced results from the Feasibility Study (FS) on its Cordero project, Chihuahua. Highlights include 19-year mine life with average annual production of 37M Oz AgEq in Year 1 to Year 12; average AISC of less than USD $12.50 over the first eight years of the mine life; initial development capex of USD $606M resulting in an attractive after-tax NPV-to-capex ratio of 2.0; Base Case after-tax NPV5% (NPV) of USD $1.2 B and IRR of 22% with NPV expanding to USD $2.2 B in Year 4; Reserves of 302M Oz Ag, 840K Oz Au, 3 B Lb Pb, and 5.2 B Lb Zn; 240M tonnes of Measured & Indicated Resource sit outside the FS pit highlighting the potential to materially extend the mine life at modestly higher silver prices; an initial investment of over USD $600M, 2,500 jobs created during construction, USD $4 B of goods and services purchased and estimated tax contributions of over USD $1.4 B within Mexico; and third-party reviews of proposed environmental practices to ensure adherence to both Mexican regulatory standards and Equator Principles 4.

ON DEALS AND CORPORATE ISSUES

  • Trident Royalties Plc, in a joint venture with Sonoroy Holdings Limited, is acquiring a 3.0% Gross Revenue Royalty over the Sonora Lithium Project in Mexico. The completion date for the transaction has been extended to December 31, 2026, allowing time for resolution of ongoing litigation and administrative reviews. Trident has the option to terminate the joint venture based on the outcome of the litigation. The acquisition aims to provide exposure to a long-life lithium project with expansion potential, operated by Ganfeng Lithium Co., Ltd. The company’s strategy focuses on building a diversified mining royalty and streaming portfolio while targeting small-to-mid size transactions in resource-friendly jurisdictions worldwide.
  • Bear Creek Mining Corporation announced the resignation of its CEO effective March 8, 2024, and later on the Board of Directors appointed its successor effective on or about March 18, 2024 (Mercedes mine, Sonora).
  • DynaResource Inc., announced the resignation of two Directors and appointed two new members to its Board of Directors (San Jose de Gracia project, Sinaloa).
  • Tarachi Gold Corp., notified that its CEO was elected to the Board of Directors (Magistral Mill & Tailings project, Durango).

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 rhyolite dike showing flow banded texture on a project of the Sonoran Desert. Photo taken by Miguel A Heredia.

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

/ gambusinoprospectormexico / Leave a comment

Silica sinter

By Miguel A Heredia

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

ON MEXICO ISSUE

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

ON EXPLORATION

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

ON MINING

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

ON FINANCING

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

ON RESOURCES AND DEVELOPMENT

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

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

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

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

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

ON DEALS AND CORPORATE ISSUES

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

ON SOCIAL RESPONSIBILITY

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

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

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

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

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Hydrothermal Breccia

By Miguel A Heredia

During the 2nd week of the year (January 8th to January 14th, 2023), at least 31 press releases were announced by companies working in Mexico, and 4 news published by the media, with nine communicating production results, eight disclosing deals and corporate issues, six reporting resources and developments, five announcing financing issues, five commenting on Mexican issues, and two informing on exploration results. ON MEXICO ISSUES, German Larrea, owner of Grupo Mexico, announced that it is in a group of several companies interested in acquiring a copper mine of First Quantum Minerals in southern Spain. Grupo Mexico reported that it advances in the construction of three copper mining projects, with a combined production of 246,000 tons per year. The Mexican Mining Chamber (CAMIMEX) announced that Mexico will begin operations of four new gold mines in 2024. President of the Association of Mining Engineers, Metallurgists and Geologists of Mexico (AIMMGM) indicated that insecurity has affected the most important mining regions of Mexico such as Sonora, Chihuahua, Zacatecas, Guerrero and the State of Mexico, where companies have had to allocate between 5 and 10% more to their security budget to combat high insecurity rates. Prime Mining reported the best drilling intercepts in Mexico on the second week of January, 2024. ON EXPLORATION, In Sonora, Colibri and JV partner Silver Spruce filed an application to drill 10,000m on the Diamante project. In Sinaloa, Centenario announced that it completed 700m in 5 holes from its maiden drilling program at its Eden project in Sinaloa.  ON MINING, Agnico reported Q3, 2023 production and financial results from their Pinos Altos Mine in Chihuahua and La India Mine in Sonora. Alamos Gold announced Q4, 2023 production results and guidance for 2024, 2025 and 2026 (Mulatos Mine, Sonora). Aura reported Q4, 2023 production results from its Aranzazu Mine in Zacatecas. GoGold announced Q4, 2023 production from its Parral Tailings project in Chihuahua. Torex reported Q4 and full year 2023 production results from its El Limon-Guajes mine complex in Guerrero. Gatos Silver provided Q4 and full year 2023 production results from its Cerro Los Gatos mine, Chihuahua. Guanajuato Silver announced Q4, 2023 production results from their Mexican operations. Endeavour reported Q4 and full year 2023 production results from its Guanacevi and Bolañitos mines in Durango and Guanajuato respectively, and provided 2024 production and cost guidance.  ON FINANCING Fortuna paid down an additional USD $41M debt (San Jose Mine, Oaxaca). Guanajuato Silver announced that it has arranged a debt settlement of CAD $455K (El Cubo Mine, Guanajuato). Atacama closed the second tranche of its previously announced brokered private placement for gross proceeds of CAD $5.5M (Cristina and Yécora projects in Chihuahua and Sonora states respectively).  Orex closed one tranche of its non-brokered private placement for net proceeds of $183,750 (Sandra and Coneto projects, Durango). Centenario closed a non-brokered private placement for gross proceeds of $50K (Eden project, Sinaloa). ON RESOURCES AND DEVELOPMENT, Prime Mining released expansion and generative drill results from its 2023 drilling program at Los Reyes project, Sinaloa. Sonoran Desert completed sampling program at Cuatro Hermanos project, Sonora. Vizsla announced an update mineral resource estimate for its flagship Panuco project in Sinaloa. Heliostar filed an updated mineral resource estimate for its Ana Paula project in Guerrero. Silver Tiger provided a 2023 summary of activities and outlook for 2024 (El Tigre project, Sonora). Tocvan presented a 2023 summary of activities at their Picacho and Pilar projects in Sonora and plans for 2024.  ON DEALS AND CORPORATE ISSUES, Avino signed a long-term land-use agreement with a local community for the development of La Preciosa, Durango. Trident Royalties announced the acquisition of royalty assets from Avino on La Preciosa deposit in Durango by making a payment of USD $8.75M. CMC Metals entered into a share purchase agreement to acquire the mineral rights of the Gavilanes property in Durango.  Defiance announced the acquisition of 100% interest in Lucita property in Zacatecas and also reported that the terms of the San Acacio property agreement in Zacatecas were successfully renegotiated with the vendor. Impact announced that it has entered into a managed services contract with Bell International de Mexico / TTN Energia to provide  Tesla Battery Energy System with solar at its Plomosas mine in Chihuahua. Monumental retained Senergy Communications Capital Inc., to provide digital media and capital markets communications services to the company (Jemi HREE project, Coahuila). Ridgestone reported results from its annual general meeting of shareholders (Rebeico project, Sonora). Excellon provided a corporate update and outlook for 2024 (Platosa mine, Durango).  ON SOCIAL RESPONSIBILITY, No relevant news.

ON MEXICO ISSUE

  • German Larrea, owner of Grupo Mexico, announced that it is among several companies that are interested in acquiring a copper mine of First Quantum Minerals in southern Spain. First Quantum began a process to sell its Las Cruces mine in southern Spain in December after the sudden closure of the Panama copper mine left the company against financial uncertainty. The Las Cruces mine would give Grupo México, the conglomerate controlled by Mexican billionaire Germán Larrea, another opportunity to expand in Europe after he failed to acquire a different Spanish copper mining complex in 2021. Copper assets have attracted the interest of mining companies that expect demand to increase as a result of the energy transition, and the upward perspectives have already caused an increase in negotiations.
  • Grupo Mexico reported that it advances in the construction of three copper mining projects, with a combined production of 246,000 tons per year: a greenfield project located approximately 45Km from the Buenavista del Cobre mine containing estimated proven and probable reserves of 317M tonnes of 0.249% Cu, with an estimated production of 36K tonnes of Cu cathodes per year by 2024; El Pilar mine, and open pit with an annual production capacity of 36K tonnes of Cu cathodes, which is expected to begin production in 2024 with an expected useful life of 13 years; and El Arco, Baja California, a world-class deposit with mineral reserves of > 1,230M tonnes with an average grade of 0.4% and 141 M tonnes of leachable material with an ore grade of 0.27% Cu. El Arco includes an open pit mine with a estimated production of 190K tonnes of Cu and 105K Oz Au annually.
  • The Mexican Mining Chamber (CAMIMEX) announced that Mexico will begin operations of four new gold mines in 2024: Media Luna in Guerrero of Torex Gold Resource Inc.; Cerro de Oro in Zacatecas of Minera Alamos Inc., with an expected production within the first four years of 60K to 70K Oz Au and subsequent production of 58.4K Oz Au, a useful life of 8.2 years,  a scheduled investment of USD $150.5M, and a start of operations expected in the second half of 2024; Terronera in Jalisco of Endeavour Silver Corp., located in Jalisco, with an investment of USD $175M and a production estimated at 33K Oz Au; and Cerro Caliche in Sonora of Sonoro Gold with an investment of USD $26M for a production of around 45K Oz Au. These projects will together produce 323,400 Oz Au annually and total an investment of USD $1,146M.
  • President of the Association of Mining Engineers, Metallurgists and Geologists of Mexico (AIMMGM) indicated that insecurity has affected the most important mining regions of Mexico such as Sonora, Chihuahua, Zacatecas, Guerrero and the State of Mexico, where companies have had to allocate between 5 and 10% more to their security budget to combat high insecurity rates. Under this panorama, the Fraser Institute of Canada placed Mexico as the fourth most unsafe country in Latin America to carry out mining activity, only below Venezuela, Colombia and Nicaragua. Globally, the Institute placed Mexico in 73rd place out of 84 jurisdictions evaluated in terms of investment attraction.

Prime Mining Corp., reported the best drilling intercepts in Mexico on the second week of January, 2024. Details are shown in the table below:

ON EXPLORATION

  • Colibri Resource Corporation and JV partner Silver Spruce Resources Inc., filed at SEMARNAT (The Mexico Environment Authority), an application to drill 10,000m on the Diamante project. The company expects to receive the authorization within the next three weeks and anticipates that the drilling program will begin soon after the receipt of the permit.
  • Centenario Gold Corp., announced that it completed 700m in 5 holes from its maiden drilling program at its Eden project in Sinaloa. Results from the first 3 holes are expected to be released prior to the end of January. All holes on this initial phase of the program target the strike and downdip extensions of the central portion of the ‘Buenavista’ mineralized structure.  

ON MINING

  • Agnico Eagle Mines Limited reported Q3, 2023 production and financial results from their Pinos Altos Mine in Chihuahua and La India Mine in Sonora. At Pinos Altos Mine, Chihuahua, the company milled 450K tonnes of 1.84 g/t Au to produce 25,386 Oz Au, at a production costs per tonne of USD $89; minesite costs per tonne of USD $85; production costs of USD $1,581 per Oz Au produced; and total cash costs of USD $1,310 per Oz Au produced. At La India Mine, Sonora, the company milled 970K tonnes of 1.1 g/t Au to produce 22,269 Oz Au, at a production costs per tonne of USD $29; minesite costs per tonne of USD $27; production costs of USD $1,271 per Oz Au produced; and total cash costs of USD $1,156 per Oz Au produced.
  • Alamos Gold Inc., announced Q4, 2023 production results and guidance for the next three years 2024-2026. The company produced 48K Oz Au at Mulatos Mine, Sonora, and expects to produce in 2024 between 160K-170K Oz Au in 2024, at a total cash and all in sustaining cost per Oz Au of USD $825-875 and USD $1125-$1,175 respectively; to produce in 2025 between 120K-130K Oz Au at a total cash and all in sustaining cost per Oz Au of USD $700-800 and USD $1050-$1,150 respectively;  and between 120K-130K Oz Au in 2026, at a total cash and all in sustaining cost per Oz Au of USD $675-775 and USD $975-$1,075 respectively.
  • Aura Minerals Inc., reported Q4, 2023 production results from its Aranzazu Mine in Zacatecas. It produced 7,061 Oz Au, 130,370 Oz Ag, and 9.6K Lb Cu for a total of 26,532 Oz AuEq.
  • GoGold Resources Inc., announced Q4, 2023 production from its Parral Tailings project in Chihuahua. The company produced 109,016 Oz Ag, 1,848 Oz Au, and 212.8K Lb Cu (300,260 Oz AgEq).
  • Torex Gold Resources Inc., reported Q4 and full year 2023 production results from its El Limon-Guajes mine complex in Guerrero. The company mined 19,404 tonnes per day in Q4, 2023 and 11,976 tonnes per day in the fiscal year 2023, with metallurgical recoveries of 89.5% and 88.6% respectively. Torex produced 137,993 Oz Au in Q4, 2023 for a total of 453,778 Oz Au in the full year of which sold 138,794 Oz Au in Q4, 2023 for a total of 444,750 Oz Au in the full year.
  • Gatos Silver Inc., provided Q4 and full year 2023 production results from its 70% owned Cerro Los Gatos mine, Chihuahua. On a 100% basis, the company milled during Q4, 2023 over 277,318 tonnes of 318 g/t Ag, 3.9% Zn, 1.9% Pb, and 0.3 g/t Au with metallurgical recoveries of 90.3%,61.8%, 89.8%, and 51.6% respectively, to produce  2.56M Oz Ag, 14.6M Lb Zn, 10.2M Lb Pb, and 1.4K Oz Au. During the full year 2023, the company  milled over 1,071,400 tonnes of 299 g/t Ag, 3.9% Zn, 1.8% Pb, and 0.29 g/t Au with metallurgical recoveries of 89.4%,62.1%, 88.7%, and 52.4% respectively, to produce  9.21M Oz Ag, 57.3M Lb Zn, 38.9M Lb Pb, and 5.26K Oz Au.
  • Guanajuato Silver Company Ltd., announced Q4, 2023 consolidated production results from their Mexican operations (El Cubo, Valenciana and san Ignacio mines in Guanajuato, and Topia mine in Durango).  The company mined 133,497 tonnes and milled 137,339 tonnes to produce 394,971 Oz Ag, 4,395 Oz Au, 837.2K Lb Pb, and 960.2K Lb Zn.
  • Endeavour Silver Corp., reported Q4 and full year 2023 production results from its Guanacevi and Bolañitos mines in Durango and Guanajuato respectively, and provided 2024 production and cost guidance. During Q4, 2023, the company processed at Guanacevi mine, Durango over 110,781 tonnes of 419 g/t Ag and 1.2 g/t Au with metallurgical recoveries of 85.2% and 87% respectively to produce 1.27M Oz Ag and 3,771 Oz Au. Through the full 2023 year, the company processed 433,409 tonnes of 417 g/t Ag and 1.19 g/t Au with metallurgical recoveries of 88% and 90.5% respectively to produce 5.1M Oz Ag and 14.9K Oz Au.  During Q4, 2023, the company processed at Bolañitos mine, Guanajuato over 109,683 tonnes of 45 g/t Ag and 1.86 g/t Au with metallurgical recoveries of 84.8% and 89.5% respectively to produce 134.7K Oz Ag and 5,887 Oz Au. Through the full 2023 year, the company processed 440,973 tonnes of 47 g/t Ag and 1.82 g/t Au with metallurgical recoveries of 85.1% and 88.6% respectively to produce 567.5K Oz Ag and 22.9K Oz Au. Endeavour also provided 2024 production and cost guidance and expects to produce between 4.9-5.2M Oz Ag and 13-15K Oz Au at Guanacevi mine, Durango, while at Bolañitos mine, Guanajuato it expects to produce between 0.5-0.6M Oz Ag and 34-38K Oz Au.

ON FINANCING

  • Fortuna Silver Inc., paid down an additional USD $41M debt of its revolving credit facility at the end of the fourth quarter of 2023, using cash on hand (San Jose Mine, Oaxaca).
  • Guanajuato Silver Company Ltd., announced that it has arranged to settle an aggregate of CAD $455K in outstanding liabilities of the Company by the issuance of an aggregate of 1,780,000 common shares in the capital of the Company at a deemed price of $0.25 per share. The debt settlement includes the issuance of shares to certain of the Company’s suppliers totaling approximately CAD $405K and to three members of senior management totaling approximately CAD $40K (El Cubo Mine, Guanajuato).
  • Atacama Copper Corporation closed the second tranche of its previously announced brokered private placement for 30,782,634 subscription receipts at a price of CAD $0.18 per subscription receipt for gross proceeds of CAD $5.5M. The net proceeds of the concurrent financing will be used to advance exploration programs across the combined portfolio, with particular focus on Cristina project in Chihuahua and Yécora project in Sonora, and for general corporate purposes.
  • Orex Minerals Inc., closed one tranche of its non-brokered private placement by issuing 1,225,000 units at a price of $$0.15 per unit for net proceeds of $183,750 (Sandra and Coneto projects, Durango).
  • Centenario Gold Corp., closed a non-brokered private placement for gross proceeds of $50K through the issuance of 333,333 units at a price of $0.15 per unit.  Proceeds from this private placement will be used for exploration of the Eden project, Sinaloa and general working capital.

ON RESOURCES AND DEVELOPMENT

  • Prime Mining Corp., released expansion and generative drill results from its 2023 drilling program at Los Reyes project, Sinaloa. Drilling highlights (reported in true widths) include holes 23LP-18 collared at Las Primas Area with 11.60 g/t Au and 311 g/t Ag (15.63 g/t AuEq) over 4.50m, including 20.39 g/t Au and 551 g/t Ag (27.52 g/t AuEq) over 2.50m, including 41.90 g/t Au and 1,111 g/t Ag (56.28 g/t AuEq) over 1.05m; and hole 23GE-147 collared at Guadalupe East Area with 9.69 g/t Au and 639 g/t Ag (17.95 g/t AuEq) over 31.25m, including 29.41 g/t Au and 1,797 g/t Ag (52.67 g/t AuEq) over 6.45m, including 45.34 g/t Au and 2,723 g/t Ag (80.57 g/t AuEq) over 3.90m. “The incredibly high-grade intercepts at Guadalupe East are exciting from a resource expansion perspective. 23GE-147 lies almost entirely within the 2023 Economic Resource Pit”.
  • Sonoran Desert Copper Corporation completed sampling program at Cuatro Hermanos project, Sonora. A total of 82 rock samples were collected. At Noemi Zone, 10 samples collected returned Cu values ranging from 37.7 ppm to 1,915 ppm with an average value of 336.5 ppm Cu; Mo from 2.57 ppm to 67 ppm with an average value of 18 ppm Mo; Ag values from 1 ppm to 173 ppm with an average value of 45 ppm; and Au values from 0.02 ppm to 5.21 ppm with an average value of 1 ppm. At South Conglomerate Zone, 20 samples collected returned Cu values ranging from 102 ppm to 162,500 ppm with an average value of 17,363 ppm Cu; Mo values from 1.68 ppm to 49.8 ppm with an average value of 22.1 ppm Mo; Ag values from 0.21 ppm to 1.5 ppm with an average value of 0.9 ppm Ag. At Maine Zone, 6 samples collected returned Cu values ranging from 93.1 ppm to 274 ppm with an average value of 196.6 ppm Cu; Mo values from 4.13 ppm to 215 ppm with an average value of 100.1 ppm Mo; and Ag values from 0.05 ppm to 6.45 ppm with an average value of 1.7 ppm Ag. At West Zone, 6 samples collected returned Cu values ranging from 37.8 ppm to 2,750 ppm with an average value of 1,204.8 ppm Cu; Mo values from 17.25 ppm to 391 ppm with an average grade of 131.3 ppm Mo; and Ag values from 0.23 ppm to 3.6 ppm with an average value of 1.44 ppm Ag. At Cactus Zone, 3 samples collected returned Cu values ranging from 1,840 ppm to 67,900 ppm with an average value of 35.980 ppm Cu, Mo values from 132 ppm to 336 ppm with an average value of 217.5 ppm Mo; and Ag values from 8.17 ppm to 13.9 ppm with an average value of 10.6 ppm Ag. At San Lorenzo Zone, 37 samples collected returned Cu values ranging from 4 ppm to 22,500 ppm with an average value of 705 ppm Cu; Mo values from 0.14 ppm to 96.70 ppm with an average grade of 8.22 ppm; and Ag values from 0.01 ppm to 60 ppm with an average value of 2.46 ppm.
  • Vizsla Silver Corp., announced an update mineral resource estimate for its flagship Panuco project in Sinaloa. “Indicated Mineral Resources are estimated at 9.5 M tonnes grading 289 g/t Ag, 2.41 g/t Au, 0.27% Pb, and 0.84% Zn (511 g/t AgEq). The Updated Mineral Resource Estimate includes indicated mineral resources of 88.2M Oz Ag, 736K Oz Au, 56.9M Lb Pb, and 178.9M Lb Zn (155.8M Oz AgEq). Highlights of the Updated Mineral Resource Estimate include 48.7% increase in indicated mineral resources from 104.8 to 155.8M Oz AgEq; 48.7% increase in inferred mineral resources from 114.1 to 169.6Moz AgEq; 17% increase in average indicated mineral resource grade from 437 to 511 g/t AgEq; and new addition of La Luisa containing 4.0 M Oz AgEq indicated and 25.3M Oz AgEq of Inferred Resources. The Updated Mineral Resource represents less than 10% of the known vein strike of the newly consolidated district. 
  • Heliostar Metals Ltd., filed an updated mineral resource estimate for its Ana Paula project in Guerrero. Results were press released last November 27, 2023.
  • Silver Tiger Metals Inc., provided a 2023 summary of activities and outlook for 2024 (El Tigre project, Sonora). 2023 highlights include the closing of a $18M bought deal financing with a syndicate of underwriters led by BMO Capital Markets; 30,000m of drilling completed at El Tigre project in Sonora; the delivery of an updated mineral resource estimate for El Tigre at September 18, 2023; and the delivery of a Preliminary Economic Assessment in November 2023 with an NPV of USD $287M. The company also plans in 2024 to complete 25,000m of drilling during H1, 2024 with the $20.1M it has in cash as of September 30,2023; to deliver a Prefeasibility Study and an updated Mineral Resource Estimate during Q2-2024; and to deliver a Preliminary Economic Assessment for the permitted underground resource during Q3-2024. 
  • Tocvan Ventures Corp., presented a 2023 summary of activities at their Picacho and Pilar projects in Sonora and plans for 2024. At Picacho project, Sonora, the company made a discovery in first 1,000m, intercepting 0.6 g/t Au over 44.2m including 2 g/t Au and 7 g/t Ag over  12.2m, approximately 200m to the north where a hole intersected 0.5 g/t Au over 27.5m, including 1.1 g/t Au over 12.2m. At Pilar project, Sonora, Tocvan conducted a successful bulk sample of 1,400 tonnes with head grades of 1.9 g/t Au and 7 g/t Ag with an initial recovery of 62% for gold. Agitated bottle roll test of the bulk sample material returned 80% recovery of gold and 94% recovery of silver after a rapid 24-hour retention time. Additional surface and core composites from across Pilar returned 95 to 99% recovery of gold and between 73 to 97% recovery of silver through combined gravity and agitated leach processing.  An initial doré bar was later poured from the bulk sample material totalling 1.487 kilograms, containing 18% gold and 69% silver. A second gold-rich doré bar is scheduled to be poured this month. The company also consolidated the project area covering 22 square-kilometers and reported a trench sample results highlighted by 1.9 g/t Au and 9 g/t Ag over 20m. Plans for 2024 include a Resource infill and expansion drilling; a Maiden Resource Estimate in Q4, 2023; a Mine planning and design; submit applications for a MIA or Environmental Impact Statement, and an EJT or technical justification study; continue metallurgical testing; continue mapping and sampling on new expansion areas; conduct trenching and channel sampling of new targets; run geophysical surveys, including magnetics; and perform discovery drilling.

ON DEALS AND CORPORATE ISSUES

  • Avino Silver & Gold Mines Limited signed a long-term land-use agreement with a local community for the development of La Preciosa in Durango, which is located approximately 19Km from the current Avino Mine production operation.
  • Trident Royalties Plc., announced the acquisition of royalty assets from Avino Silver & Gold Mines Limited, comprising1.25% NSR covering La Gloria and Abundancia Veins at La Preciosa deposit in Durango, and a 2% gross value return royalty covering all other areas of La Preciosa by making a payment of USD $8.75M within 12 months of first silver production at La Preciosa.
  • CMC Metals Ltd., entered into a share purchase agreement to acquire all the issued and outstanding shares of Swordfish Silver Corp. , who, through Sailfish de Mexico S.A. de C.V., holds the mineral rights of the Gavilanes property in Durango.  The deal is subject to the TSX approval.
  • Defiance Silver Corp., announced the acquisition of 100% interest in Lucita property, Zacatecas from Pan American Silver Corp., by completing payments for USD $1.5M and Pan American retaining a 2% NSR. It also reported that the terms of the San Acacio property agreement in Zacatecas were successfully renegotiated with the vendor. “The project vendor has agreed to extend the option agreement terms by one year from September 27, 2023 to September, 27, 2024. Defiance will now be making quarterly payments, over the year, to the property vendor totaling USD $539,721.51, with the final option payment of USD $2,300,000 due September27, 2024. In accordance with the original agreement, the vendor retains a 2.5% NSR which may be purchased for USD $2,500,000”.
  • Impact Silver Corp., announced that it has entered into a managed services contract with Bell International de Mexico / TTN Energia for the planning, design, construction, and operation of Tesla commercial battery with solar at its Plomosas mine in Chihuahua.
  • Monumental Energy Corp., retained Senergy Communications Capital Inc., to provide digital media and capital markets communications services to the company by paying CAD$ 5K and up to maximum of CAD $30K towards direct expenses and costs for a 2-month period (Jemi HREE project, Coahuila).
  • Ridgestone Mining Inc., reported results from its annual general meeting of shareholders (Rebeico project, Sonora).
  • Excellon Resources Inc., provided a corporate update and outlook for 2024 (Platosa mine, Durango).  The company eliminated the USD $22M litigation liability overhang, through the deconsolidation of San Pedro Resources, and completed the strategic review of prior Mexico operations to allow Excellon to focus energies on key assets. Excellon is pursuing acquisition opportunities where it can unlock further value for shareholders.

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 hydrothermal breccia in an intermediate sulphidation epithermal vein system in a project in Chihuahua. Photo by Miguel A Heredia

The Mining and Exploration News in Mexico: Highlights on the Fifth Week of November, 2023

/ gambusinoprospectormexico / Leave a comment

Banded quartz veins and breccias

By Miguel A Heredia

During the 48th week of the year (November 27th to December 03rd, 2023), at least 29 press releases were announced by companies working in Mexico, and 1 news published by the media, with ten disclosing deals and corporate issues, eight reporting resources and developments, seven announcing financing issues, three communicating production results, and two commenting on Mexican issues. ON MEXICO ISSUES, President of the College of Mining Engineers, Metallurgists and Geologists of Mexico (CIMMGM), assured that, although there are promising geological signs in Chihuahua, Coahuila, Zacatecas, Oaxaca, Guerrero and Guanajuato, the Mining Law limits exploration of ‘rare earths’ in Mexico. Torex Gold, Endeavour Silver, and Vizsla reported the best drilling intercepts in Mexico on the fifth week of November, 2023. ON EXPLORATION, No relevant news. ON MINING, Orogen reported royalty revenue for Q3, 2023. Santacruz announced Q3, 2023 production results from its Zimapan mine in Hidalgo. Minera Alamos reported Q3, 2023 production and financial results from its Santana mine in Sonora. ON FINANCING Sailfish elected to settle and aggregate of USD $205K in interest accrued up to November 24, 2023 through the issuance of an aggregate of 219,397 common shares (Gavilanes project, Durango). Orex announced a non-brokered private placement for gross proceeds of up to $1M (Valenciana project, Zacatecas). Aura declared dividend of USD $0.25 per common share (Aranzazu mine, Zacatecas).  Silver Viper announced a non-brokered private placement for gross proceeds of up to $5M (La Virginia project, Sonora). Tocvan closed the first tranche of its previously announced non-brokered private placement for gross proceeds of $369K (Pilar project, Sonora). Oroco closed a non-brokered private placement for gross proceeds of $2,691,940 (Santo Tomas project, Sinaloa). ON RESOURCES AND DEVELOPMENT, Vizsla released new drill results from 22 expansion and infill holes collared at its flagship Panuco project, Sinaloa.  Endeavour presented results from its exploration drilling program at its Bolañitos mine, Guanajuato. Guanajuato Silver initiated processing of mineralized material from El Horcon mine, Guanajuato. Heliostar announced updated Mineral Resource Estimate for its Ana Paula project, Guerrero. Tocvan poured the first doré bar of gold and silver from bulk sample material processed at its Pilar project, Sonora. Torex released results from the 2023 exploration drilling program at its Media Luna West project in Guerrero. Mammoth announced results of an independent drill hole spacing analysis with recommendations to identify initial Mineral Resource Estimate at its Tenoriba project, Chihuahua. Oroco filed an independently prepared Preliminary Economic Assessment (PEA) for its Santo Tomas project in Sinaloa.  ON DEALS AND CORPORATE ISSUES, Bear Creek entered into an agreement to amend the convertible promissory note in the amount of USD $26,632,458 issued to Equinox on October 19, 2023 (Mercedes mine, Sonora).  Endeavour announced that it hosted an investor day at its Terronera project in Jalisco last November 19-21. Argonaut announced that it attended the Scotiabank Mining Conference in Toronto (El Castillo mine, Durango). Discovery announced the appointment of its new COO (Cordero project, Chih). Guanajuato Silver announced management changes (La Valenciana mine, Guanajuato). Bear Creek granted a total of 900K stock options to two recently appointed Directors and new Chief Operating Officer (Mercedes mine, Sonora).  Mithril announced termination of scheme implementation deed under which Newrange would acquire 100% of the issued share capital of Mithril (Copalquin project, Durango).  Pan American Silver acquired 5,083,780 common shares of New Pacific Metals Corp., for total investment value of approximately CAD $13.5M (La Colorada mine, Zacatecas). Prime Mining announced that it will be trading on the Toronto Stock Exchange on December 5, 2023 following its graduation from the TSX Venture Exchange (Los Reyes project, Sinaloa). Silver Storm announced that it will present live at the Clean Energy and Precious Metals Virtual Investor Conference on December 5, 2023 (La Parrilla mine, Durango).  ON SOCIAL RESPONSIBILITY, No relevant news.

ON MEXICO ISSUE

  • President of the College of Mining Engineers, Metallurgists and Geologists of Mexico (CIMMGM), assured that, although there are promising geological signs in Chihuahua, Coahuila, Zacatecas, Oaxaca, Guerrero and Guanajuato, the Mining Law limits exploration of ‘rare earths’ in Mexico. The lack of formal exploration work imposed by the new legislation leaves Mexico at risk of becoming dependent on China, which controls 90 percent of global rare earth production. This is because the only one that can carry out exploration in Mexico is the Mexican Geological Service (SGM), which has reduced the interest of private parties to search for these minerals. For next year, the Secretariat of Finance and Public Credit (SHCP) granted the SGM a budget of MXP $1,320M, just MXP $127M more in relation to the MXP $1,193M that were granted for 2023, a budget that, they assure, will be insufficient. SGM explained that, if they do not have more budget, it will be difficult for them to meet the new mandates assigned to them by the Ministry of Economy, so, until now, they said, the most viable thing will be to work hand in hand with private sector.
  • Torex Gold Resources Inc., Endeavour Silver Corp., and Vizsla Silver Corp., reported their best drilling intercepts in Mexico on the third week of November, 2023. Details are shown in the table below:

ON EXPLORATION

  • No relevant news.

ON MINING

  • Orogen Royalties Inc., reported royalty revenue for Q3, 2023. Production from Ermitaño mine, Sonora is operated by First Majestic Silver Corp., and Orogen holds a 2% net smelter return royalty.  Ermitaño processed 226,292 tonnes containing average grades of 4.09 g/t Au and 75 g/t Ag to produce 28,367 Oz Au and 347,941 Oz Ag. The company recorded $1,628,409 in royalty revenue consisting of 614 gold equivalent ounces (GEOs), up 29% compared to the same period in 2022.
  • Santacruz Silver Mining Ltd., announced Q3, 2023 production results from its Zimapan mine in Hidalgo. The company processed 192,158 tonnes of 80 g/t Ag, 1% Pb, 2.5% Zn, and 0.29% Cu to produce 378.7K Oz Ag, 3.42M Lb Pb, 8.36M Lb Zn, and 564.5K Lb Cu (1.2M Oz AgEq).
  • Minera Alamos Inc., reported Q3, 2023 production and financial results from its Santana mine in Sonora. The company announced that the total Oz Au recovered since the start of operations through until September 30, 2023 at Santana was 14,270 Oz Au with a recoverable gold inventory on the leach pad increasing to 6,337 ounces as at September 30, 2023. It also released financial results (all numbers in Canadian dollars) and reported revenue from the sale of 6,337 Oz Au of $1,790,245; good sold and depletion of $2,063,559 for gross loss from mining operations of $273,313;  a net loss of $4,973,485; working capital as of September 30, 2023 of $19,668,154; and cash and cash equivalents of $6,573,453.

ON FINANCING

  • Sailfish Royalty Corp., elected to settle and aggregate of USD $205K in interest accrued up to November 24, 2023 through the issuance of an aggregate of 219,397 common shares in the capital of the company  at a deemed price of CDN $1.28 per share to the holders of convertible debentures dated May 24, 2023. Each debenture accrues interest at a rate of 10% per annum payable semi-annually in arrears (Gavilanes project, Durango).
  • Orex Minerals Inc., announced a non-brokered private placement for gross proceeds of up to $1M from the sale of 6,666,667 units at a price of $0.15 per unit. Gross proceeds will be used for exploring its new Valenciana project in Zacatecas and for general working capital purposes.
  • Aura Minerals Inc., declared dividend of USD $0.25 per common share (Approximately USD $18M) based on the actual results from Q3, 2023 and the expected results for Q4, 2023, including expected production, cash costs and sustaining and exploration capex for Q4, 2023. The dividend will be paid to shareholders on December 19, 2023 (Aranzazu mine, Zacatecas).
  • Silver Viper Minerals Corp., announced a non-brokered private placement for gross proceeds of up to $5M from the sale of 45,454,546 units at a price of $0.11per unit. Silver Viper filed an amendment and restarted the offering document, suggesting prospective investors to read the offering document before making an investor decision. “The company intends to use the minimum net proceeds of $2M from the offering for working capital requirements and other general corporate purposes which includes legal and financing fees as part of this offering, and the final USD $200K option payment on its La Virginia Project due in 2024. Any additional net proceeds from the offering will be used to continue surface exploration including mapping and sampling as well as a drill campaign at the La Virginia Project in Sonora”.
  • Tocvan Ventures Corp., closed the first tranche of its previously announced non-brokered private placement for gross proceeds of $369K from the sale of 820K units at a price of $0.45 per unit. Gross proceeds will be used to advance the Pilar project in Sonora.
  • Oroco Resource Corp., closed a non-brokered private placement for gross proceeds of $2,691,940 through the sale of 6,729,850 units at a price of $0.40 per unit. Gross proceeds will be used for working capital and corporate overhead and exploration and development activities (Santo Tomas project, Sinaloa).

ON RESOURCES AND DEVELOPMENT

  • Vizsla Silver Corp., released new drill results from 22 expansion and infill holes collared on the Copala resource area at its flagship Panuco project, Sinaloa. Drilling highlights (true widths reported) include holes CS-23-304 with 249 g/t Ag and 1.23 g/t Au (313 g/t AgEq) over 1.0m; and hole CS-23-300 with 247 g/t Ag and 2.28 g/t Au (385 g/t AgEq) over 1.73m, plus 519 g/t Ag and 3.57 g/t Au (724 g/t AgEq) over 3.10m, including 1,255 g/t Ag and 8.61 g/t Au (1,749 g/t AgEq) over 1m, plus 190 g/t Ag and 0.69 g/t Au (221 g/t AgEq) over 1.25m. “The reported results have successfully expanded Copala mineralization by ~100m to the southeast and identified new vein splays situated in-between Copala and the high-grade Cristiano structure”.
  • Endeavour Silver Corp., presented results from its exploration drilling program conducted on El Puertecito and Fortuna Veins at its Bolañitos mine, Guanajuato. Focus of this program is to increase resources, replace reserves, and extend mine life. Drilling highlights (true width reported) at Fortuna Vein include includes hole  GOL-42 with 4.01 g/t Au and 135 g/t Ag (456 g/t AgEq) over 1.18m, including 8.04 g/t Au and 280 g/t Ag (923 g/t AgEq) over 0.56m. Drilling highlights (true widths reported) at El Puertecito Vein include holes GOL-11 with 8.78 g/t Au and 86 g/t Ag (788 g/t AgEq) over 2.09m, including 25.70 g/t Au and 59 g/t Ag (2,115 g/t AgEq) over 0.57m; and hole GOL-09 with 4.44 g/t Au and 94 g/t Ag (449 g/t AgEq) over 2.07m, including 11.35 g/t Au and 258 g/t Ag (1,166 g/t AgEq) over 0.56m.
  • Guanajuato Silver Company Ltd., initiated processing of mineralized material from an existing stock pile at its El Horcon mine, Guanajuato. The company has shipped and processed 350 tonnes of material from the historical stockpile. Head grades from different batches of this material were approximately 30-50 g/t Ag and 1.6 to 3.0 g/t Au, with initial processing runs given recoveries of approximately 70% for Ag and 82% for Au. “The Horcon stockpile is expected to add approximately 4,000 tonnes of mineralized material per month over a six-to-ten-month period. Metallurgical testing of the mineralized material at Horcon has been demonstrated compatible with the Cata mill processing circuit and is currently being blended with mineralized production from the Valenciana Mines Complex”.
  • Heliostar Metals Ltd., announced updated Mineral Resource Estimate for its Ana Paula project, Guerrero. Highlights of the Mineral Resource Estimate include a total measured and indicated mineral resources of 710,920 Oz Au grading 6.6 g/t Au; a total of inferred mineral resource of 447,512 Oz Au grading 4.21 g/t Au; a mineral resource estimation cutoff grade of 2.5 g/t Au increased from previous estimate; a connected zone of greater than 2ooK Oz Au grading greater than 10 g/t Au within the measured resource in the High Grade Panel that can be targeted in the initial years of mining; a 58% increase in measured and 30% increase in indicated gold grade relative to the previous resource estimate at same 2.5 g/t cutoff grades. On the other hand, a tighter spaced drilling has led to resource grade growth which is a positive indication for additional grade increases during conversation of the inferred resources to higher classifications; has increased in inferred ounces due to stricter estimation with a view to underground mining; the High Grade Panel at core of the resource is now 280m long, 100m high, and 60m thick; and this new resource has been delivered  at an all-in discovery cost of USD $16 per new Oz Au, inclusive of all exploration and project costs.
  • Tocvan Ventures Corp., poured the first doré bar of gold and silver from bulk sample material processed at its Pilar project, Sonora. The bar weighs 1.487 kilograms in total, with assays from local certified laboratory LTM returning 18% of gold and 69% of silver.
  • Torex Gold Resources Inc., released results from the 2023 exploration drilling program at its Media Luna West project in Guerrero, which consisted of 7 holes totalling 9.722m. Drilling highlights include holes ML23-965 with 1.63 g/t Au, 13 g/t Ag, and 0.48% Cu (2.55 g/t AuEq) over 6.85m, plus 4.42 g/t Au, 1 g/t Ag, and 0.04% Cu (4.50 g/t AuEq) over 2.96m; hole ML23-970A with 2.81 g/t Au, 27 g/t Ag, and 0.31% Cu (3.62 g/t AuEq) over 5m; and hole ML23-986A with 27.50 g/t Au, 28 g/t Ag, and 1.2% Cu (29.76 g/t AuEq) over 14.1m. “The current distribution of the multiple intercepts confirms a north-south extension of more than 600 m with a width similar to the EPO deposit, which suggests Media Luna West could have a similar mineralized potential to that of EPO. The exploration potential of this structural corridor is open to the north and is likely favored by intersecting with the swarm of east-west dykes that define the best mineralization trap within both the nearby Media Luna and EPO deposits”.
  • Mammoth Resources Corp., announced results of an independent drill hole spacing analysis with recommendations to identify initial Mineral Resource Estimate (MRE) at its Tenoriba project, Chihuahua. The independent analysis recommended  drill hole spacing for the El Moreno, Masuparia, and Los Carneritos targets of 80m, 40m, and 80m respectively, for an Inferred MRE.
  • Oroco Resource Corp., filed an independently prepared Preliminary Economic Assessment (PEA) for its Santo Tomas project in Sinaloa. The report dated October 11, 2023 and titled “Santo Tomas Copper Project NI 43-101 Technical Report and Preliminary Economic Assessment”, has been prepared in accordance with National Instrument 43-101 – Standards of Disclosure of Mineral Projects.  Results of the PEA were previously announced in the Company’s news release dated October 17, 2023.  There are no differences in the Report from those results previously reported. 

ON DEALS AND CORPORATE ISSUES

  • Bear Creek Mining Corporation entered into an agreement to amend the convertible promissory note in the amount of USD $26,632,458 issued to Equinox Gold Corp., on October 19, 2023 (Mercedes mine, Sonora).
  • Endeavour Silver Corp., announced that it hosted an investor day at its Terronera project in Jalisco last November 19-21, to showcase the project and construction progress to date.
  • Argonaut Gold Inc., announced that it attended the Scotiabank Mining Conference held in Toronto last November 28th and 29th (El Castillo mine, Durango).
  • Discovery Silver Corp., announced the appointment of its new COO (Cordero project, Chih).
  • Guanajuato Silver Company Ltd., announced management changes, announcing the appointment of its new COO. The company also signed an agreement with the court appointed insolvency trustee of the Great Panther Estate to terminate all obligations of the company to make contingency payments totalling USD $2M in exchange for the offset of a working capital adjustment receivable owed to the company by Great Panther (La Valenciana mine, Guanajuato).
  • Bear Creek Mining Corporation granted a total of 900K stock options to two recently appointed Directors and new Chief Operating Officer (Mercedes mine, Sonora).
  • Mithril Resources Limited announced termination of scheme implementation deed under which Newrange would acquire 100% of the issued share capital of Mithril and pursuant to which the existing options to acquire shares in Mithril would be cancelled (Copalquin project, Durango).
  • Pan American Silver Corp., acquired 5,083,780 common shares of New Pacific Metals Corp., for total investment value of approximately CAD $13.5M. “Upon completion of the offering, which occurred on September 29, 2023, Pan American owns, directly and indirectly, 19,807,848 common shares representing approximately 11.6% of the outstanding common shares. Immediately prior to the acquisition, Pan American held 14,724,068 common shares, representing approximately 9.34% of the issued and outstanding common shares” (La Colorada mine, Zacatecas).
  • Prime Mining Corp., announced that it will be trading on the Toronto Stock Exchange on December 5, 2023 following its graduation from the TSX Venture Exchange. The trading symbol for the common shares of Prime on the TSX will remain unchanged as “PRYM” (Los Reyes project, Sinaloa).
  • Silver Storm Mining Ltd., announced that it will present live at the Clean Energy and Precious Metals Virtual Investor Conference on December 5, 2023 (La Parrilla mine, Durango).

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, brecciated banded quartz vein in an epithermal vein system in a project in Zacatecas, Mexico. Photo by Miguel A Heredia.