Pre-Feasibility Study

The Mining and Exploration News in Mexico: Highlights on the Fourth Week of March, 2023.

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Garnetite (grossular garnet skarn)

By Miguel A Heredia

During the 12th week of the year (March 20th to March 26th, 2023), at least 17 press releases were announced by companies working in Mexico, and 1 news published by the media with eight reporting resources and developments of their properties, five disclosing deals and corporate issues, two communicating production and financial results, one commenting on Mexican Issues, one informing on exploration results, and one discussing social issues. ON MEXICO ISSUES, Torex, Vizsla, and Discovery Silver reported the best drilling intercepts in Mexico on the fourth week of March, 2023.  ON EXPLORATION, In Zacatecas, Radius announced the discovery and acquisition of a new gold property within the Fresnillo mining district. ON MINING, Golden Minerals announced full year 2022 production and financial results. Impact reported full year 2022 production and financial results from its Zacualpan mining district in the State of Mexico.  ON FINANCING, no relevant news. ON RESOURCES AND DEVELOPMENT, Golden Minerals presented results of an initial Mineral Resource Estimate prepared for its Yoquivo project in Chihuahua.  Vizsla announced results from seven holes drilled at its flagship Panuco project in Sinaloa. Fortuna Silver reported updated Mineral Reserve and Mineral Resource Estimates for its San Jose Mine in Oaxaca. Discovery Silver announced results from the Feasibility Study (FS) drill holes on its flagship Cordero property in Chihuahua.  Torex reported encouraging results from the 2022 drilling program at EPO deposit within its Media Luna property in Guerrero. GR Silver announced significant updated Mineral Resource Estimate for its Plomosas project in Sinaloa. Southern Silver updated the Mineral Resource Estimate on its Cerro Las Minitas project in Durango. ON DEALS AND CORPORATE ISSUES, Capitan Mining announced name change to Capitan Silver Corp. (Cruz de Plata project, Durango). Radius entered into an option agreement to acquire 100% of the 200 hectares Tropico property within the Fresnillo mining district in Zacatecas. Heliostar announced that it returned to trading on the TSX Venture exchange (Ana Paula, Guerrero). Sierra Madre announced that it received approval for the acquisition of the La Guitarra property in the State of Mexico. Pan American and Yamana provided an update on the status of Pan American´s proposed acquisition of all the issued and outstanding common shares of Yamana. ON SOCIAL RESPONSIBILITY, Industrias Peñoles and Fresnillo plc, implemented a responsible water management policy in order to reduce their footprint water.

ON MEXICO ISSUE

  • Torex Gold Resources Inc., Vizsla Silver Corp., and Discovery Silver Corp., reported the best drilling intercepts in Mexico on the fourth week of March, 2023. Details are shown in the table below:

ON EXPLORATION

  • Radius Gold Inc., announced the discovery and acquisition of a new gold property within the Fresnillo mining district in Zacatecas. El Tropico project is located 30km NW of Fresnillo city and consists of hot spring type sinter and breccia pipe. Radius identified an elliptical zone of intensely silicified hydrothermal breccias approximately 450m by 250m in a flat zone and hosted in finely bedded siltstone and dirty limestone interpreted to be part of the Proaño Group which host the major Fresnillo deposit. Twenty eight rock chip samples were collected on the property with encouraging results. Au assays ranged from 0.02 g/t to 0.88 g/t, with an average of 0.28 g/t; Hg values are very high with many samples exceeding >100 ppm (the upper limit of detection); Sb values are very anomalous and ranged from 64 ppm to 1,135 ppm; As values ranged from 8 ppm to 854 ppm; and Ag values ranged from 0.6 g/t to 5.6 g/t.

ON MINING

  • Golden Minerals Company announced full year 2022 production and financial results from its Rodeo project in Durango. It produced 11,982 Oz Au and 32,179 Oz Ag at average realized sales prices of USD $1,805 and USDS $21.93 per Oz respectively. Total cash costs were USD $1,362 per payable Oz Au. Golden reported revenue of USD $23.3M; net operating margin of USD $5.7M; cash and equivalents balance as of December 31, 2022 of USD $4M; exploration expenses of USD $9.6M; and a net loss of USD 9.9M.
  • Impact Silver Corp., reported full year 2022 production and financial results from its Zacualpan mining district in the State of Mexico. The company processed 152,862 tonnes at a direct production cost of USD $97.49 per ton, to produce 633K Oz Ag. Impact sold 644.8K Oz Ag, and reported revenues of USD $16.3M; mine operating earnings before amortization and depletion of USD $1.2M; cash flow loss of USD $1.8M; balance sheet of USD $15.3M in cash and working capital of USD $16.4M.  The company has not long-term debt.

ON FINANCING

  • No relevant news.

ON RESOURCES AND DEVELOPMENT

  • Golden Minerals Company filed a NI 43-101 Technical Report for its Yoquivo project in Chihuahua in which presented results of an initial Mineral Resource Estimate (MRE).  The Yoquivo MRE include inferred resources for 937K tonnes with average grades of 410 g/t Ag and 2.1 g/t Au (570 g/t AgEq) for a total of 12.3M Oz Ag and 64K Oz Au (17.23M Oz AgEq) contained. The resource was not initially classified beyond Inferred. The company believes that a significant portion will be updated to Measured & Indicated in the next resource update.
  • Vizsla Silver Corp., announced results from seven holes drilled at its flagship Panuco project in Sinaloa. Drilling highlights (true widths reported) from the La Luisa Vein located 700m west of the Napoleon Vein include hole NP-22-332 with 2,699 g/t Ag, 24.99 g/t Au, 0.2% Pb, and 0.6% Zn (4,227 g/t AgEq) over 2.30m, including 11,502 g/t Ag, 120.5 g/t Au, 0.8% Pb, and 2.6% Zn (18,950 g/t AgEq) over 0.47m; hole NP-22-358 with 257 g/t Ag, 11.13 g/t Au, 0.4% Pb, and 2% Zn (1,076 g/t AgEq) over 5.6m, including 659 g/t Ag, 44.22 g/t Au, 0.5% Pb, and 2.3% Zn (3,698 g/t AgEq) over 1.1m, including 221 g/t Ag, 22.68 g/t Au, 0.3% Pb, and 0.5% Zn (1,761 g/t AgEq) over 0.27m, plus 174 g/t Ag, 0.77 g/t Au, 0.4% Pb, and 0.5% Zn (243 g/t AgEq) over 1.16m, plus 226 g/t Ag, 1.45 g/t Au, 1.2% Pb, and 8% Zn (633 g/t AgEq) over 1.27m; and hole NP-22-345 with 1,286 g/t Ag, 9.76 g/t Au, 0.9% Pb, and 2.3% Zn (1,967 g/t AgEq) over 2.5m, including 2,982 g/t Ag, 24.01 g/t Au, 1.8% Pb, and 5% Zn (4,630 g/t AgEq) over 0.99m, plus 42 g/t Ag, 1.55 g/t Au, 0.5% Pb, and 2.1% Zn (237 g/t AgEq) over 1.48m, plus 42 g/t Ag, 4.05 g/t Au, 0.2% Pb, and 2.9% Zn (426 g/t AgEq) over 2.53 m, plus 65 g/t Ag, 2.21 g/t Au, 0.1% Pb, and 2.6% Zn (306 g/t AgEq) over 1.70m. These results expand the high-grade footprint at La Luisa by over approximately 150m down dip from previously reported drill holes.
  • Fortuna Silver Mines Inc., reported updated Mineral Reserve and Mineral Resource Estimates as of December 31, 2022 for its San Jose Mine in Oaxaca. The company estimated Proven + Probable Reserves of 2.14M tonnes with grades of 172 g/t Ag and 1.16 g/t Au for a total of 11.8M Oz Ag and 80K Oz Au contained. It also reported Measured and Indicated Mineral Resources of 911K tonnes with grades of 109 g/t Ag and 0.72 g/t Au for a total of 3.2M Oz Ag and 21K Oz Au contained, and Inferred Resources of 2.52M tonnes with grades of 118 g/t Ag and 0.83 g/t Au for a total of 9.6M Oz Ag and 67K Oz Au contained. (Mineral Resources are exclusive of Mineral Reserves).
  • Discovery Silver Corp., announced results from the Feasibility Study (FS) drill holes on its flagship Cordero property in Chihuahua. Drilling highlights include hole C22-677 located 185m within the resource pit in the South Corridor with 77 g/t Ag, 0.16 g/t Au, 0.7% Pb, and 1.3% Zn (158 g/t AgEq) over 31.7m, plus 124 g/t Ag, 0.09 g/t Au, 1.2% Pb, and 1.9% Zn (241 g/t AgEq) over 38.5m; hole C22-687, toward the bottom and beneath the reserves pit in an area previously modeled as waste with 14 g/t Ag, 0.09 g/t Au, 0.2% Pb, and 1.3% Zn (75 g/t AgEq) over 50.3m, plus 35 g/t Ag, 0.06 g/t Au, 0.7% Pb, and 1.7% Zn (126 g/t AgEq) over 35.5m, plus 25 g/t Ag, 0.06 g/t Au, 0.6% Pb, and 2.2% Zn (133 g/t AgEq) over 27.4m; and hole C22-671 located approximately 1.5km northeast of the reserves pit with 137 g/t Ag, 0.05 g/t Au, 3.1% Pb, and 3.5% Zn (370 g/t AgEq) over 14.8m, plus 55 g/t Ag, 0.04 g/t Au, 0.9% Pb, and 1.5% Zn (141 g/t AgEq) over 23.1m. The FS drilling consisted of 30 drill holes and was focused on two key areas: 1) expansion of reserves within and beneath the Pre-Feasibility Study open pit and 2) upgrading and expansion of the resource in the far northeast of the deposit. The drilling results will be incorporated in a FS in conjunction with a resource update planned for the first half of 2024.
  • Torex Gold Resources Inc., reported encouraging results from the 2022 drilling program at EPO deposit within its Media Luna property in Guerrero. Drilling highlights include hole ML22-900D with 12.25 g/t Au, 72 g/t Ag, and 3.59% Cu (18.90 g/t AuEq) over 32.87m; hole ML22-924D with 5.32 g/t Au, 150 g/t Ag, and 5.77% Cu (16.38 g/t AuEq) over 17.23m, including 99.52 g/t Au, 91 g/t Ag, and 4.42% Cu (107.73 g/t AuEq) over 4.28m; hole ML22-886D with 4.93 g/t Au, 76 g/t Ag, and 3.11% Cu (10.83 g/t AuEq) over 35.05m; hole ML22-927 with 9.11 g/t Au, 11 g/t Ag, and 0.31% Cu (9.75 g/t AuEq) over 17.35m, plus 5.99 g/t Au, 21 g/t Ag, and 0.67% Cu (7.31 g/t AuEq) over 42.02m; hole ML22-926D with 1.35 g/t Au, 81 g/t Ag, and 3.86% Cu (8.54 g/t AuEq) over 32.1m; hole ML22-925D with 1.19 g/t Au, 46 g/t Ag, and 2.12% Cu (5.16 g/t AuEq) over 28.46m, plus 8.51 g/t Au, 137 g/t Ag, and 5.78% Cu (19.44 g/t AuEq) over 5.09m; hole ML22-909A with 1.71 g/t Au, 70 g/t Ag, and 2.88% Cu (7.17 g/t AuEq) over 14.78m, plus 2.1 g/t Au, 58 g/t Ag, and 2.82% Cu (7.33 g/t AuEq) over 18.34m; hole ML22-919D with 6.82 g/t Au, 35 g/t Ag, and 1.46% Cu (9.58 g/t AuEq) over 6.05m, plus 8.04 g/t Au, 11 g/t Ag, and 0.78% Cu (9.43 g/t AuEq) over 8.47m; hole ML22-815D with 8.58 g/t Au, 8 g/t Ag, and 0.41% Cu (9.33 g/t AuEq) over 14.71m; hole ML22-912D with 4.23 g/t Au, 8.21 g/t Ag, and 0.08% Cu (4.45 g/t AuEq) over 18.77m; and hole ML22-920A with 12.47 g/t Au, 16 g/t Ag, and 0.19% Cu (12.96 g/t AuEq) over 4.31m. The company informed that the drilling results were very encouraging and is expected to achieve the target of upgrading half of the current inferred resources to the indicated category. Torex is optimistic about the potential to further increase the size of EPO as the deposit remains open to the north, south, and west.
  • GR Silver Mining Ltd., announced significant updated Mineral Resource Estimate for its Plomosas project in Sinaloa. The company reported that there was an increase of 108% in Indicated Resources from 46M Oz AgEq to 97M Oz AgEq; 72% increase in Indicated Resources from 32M Oz Ag to 55M Oz Ag; 61% increase in Inferred Resources from 33M Oz AgEq to 53M Oz AgEq; 20% increase in Inferred Resources from 18M Oz Ag to 22M Oz Ag; 44% increase in average Indicated Mineral Resource grade from 143 g/t Ag to 206 g/t AgEq; and 65% increase in average Inferred Mineral Resource grade from 112 g/t Ag to 115 g/t Ag. At San Marcial, there was an increase of 80% in Indicated Mineral Resources from 36M Oz AgEq to 65M Oz AgEq; and a 65% increase in Inferred Mineral Resources from 12M Oz AgEq to 20M Oz AgEq. GR Silver reported Indicated Mineral Resources of 9.7M tonnes at 209 g/t AgEq (148 g/t Ag), and Inferred Mineral Resources of 3M tonnes at 200 g/t AgEq (145 g/t Ag). 71% of the value of the San Marcial Resource Estimate is comprised of Ag, and 91% of the 65M Oz AgEq San Marcial Indicated Resources are potentially amenable to open pit extraction. At Plomosas, there was an increase of 137% in the Indicated Mineral Resource tonnage; 260% increase in the Indicated Mineral Resource from 9M Oz AgEq to31M Oz AgEq; Ag and AgEq grade increased by 30% and 52% respectively; 20% of the total Indicated Mineral Resource is comprised of Ag, and 26% of the total Inferred Mineral Resource is comprised of Ag. It means that 46% of the Resource Estimate at Plomosas mine area is comprised of precious metals.
  • Southern Silver Exploration Corp., updated the Mineral Resource Estimate (MRE) on its Cerro Las Minitas project in Durango. The updated MRE significantly expanded sulphide resources in the La Bocona deposit. The newly modelled mineral resources represent an approximate 63% increase in the size of the La Bocona deposit (on an AgEq basis) and an overall 4.5% increase in the mineral resources of the entire project. The company reported Indicated Mineral Resources of 12.5M tonnes at grades of 106 g/t Ag, 0.07 g/t Au, 0.2% Cu, 1.3% Pb, and 3.3% Zn (349 g/t AgEq or 8.5% ZnEq) to contain 42.7M Oz Ag, 29K Oz Au, 46M Lb Cu, 364M Lb Pb, and 903M Lb Zn (140M Oz AgEq or 2,300M Lb ZnEq), and Inferred Mineral Resources of 21M tonnes at grades of 118 g/t Ag, 0.1 g/t Au, 0.2% Cu, 1.2% Pb, and 2.2% Zn (311 g/t AgEq or 7.6% ZnEq) to contain 80M Oz Ag, 85K Oz Au, 101M Lb Cu, 571M Lb Pb, and 1,029M Lb Zn to contain 210M Oz AgEq or 3,500M Lb ZnEq. “The new MRE incorporates results from 26 additional drill holes totalling 11,801.5m which tested the north-western extension the La Bocona deposit. Mineralization was also identified in several holes specifically along the northern margin of the central intrusion that were not incorporated into the new resource update and with further drilling, represent additional expansion opportunities”.

ON DEALS AND CORPORATE ISSUES

  • Capitan Mining Inc., announced name change to Capitan Silver Corp. Capitan Silver will continue to trade under the same symbol ‘CAPT’ on the TSX Venture Exchange and the number of shares outstanding will not change (Cruz de Plata project, Durango).
  • Radius Gold Inc., entered into an option agreement to acquire 100% of the 200 hectares Tropico property within the Fresnillo mining district in Zacatecas. Terms of the option include a payment on signing of USD $200K (completed); a further USD $200K payment which can be paid in 6 monthly installments over a period of 42 months, starting with USD $25K at month 12 from signing in order to maintain the property option. At month 48, Radius can acquire 100% of the property for USD $5M. An additional milestone payment of USD $5M is conditional on delivering a compliant feasibility study or at the start of mine construction.  A further USD $3M to be paid if reserves exceed 2M Oz AuEq (Au + Ag ounces). If Radius does not complete payment of the milestone USD $5M within 8 years of signing, the property would return 100% to original owners.
  • Heliostar Metals Limited announced that it returned to trading on the TSX Venture exchange. “The Company can now submit the required documentation to return to trade on the OTCQX and will provide an update once the timeline is clear” (Ana Paula, Guerrero).
  • Sierra Madre Gold and Silver Ltd., announced that it received approval from the Federal Economic Competition Commission (COFECE), the Mexico´s antitrust agency for the acquisition of the La Guitarra property in the State of Mexico.  With the receipt of this approval, closing of the acquisition is expected to take place on March 30,2023, followed by trade resumption of Sierra Madre shares shortly thereafter.
  • Pan American Silver Corp., and Yamana Gold Inc., provided an update on the status of Pan American´s proposed acquisition of all the issued and outstanding common shares of Yamana. Both companies informed that the Mexican Federal Economic Competition Commission approved the Pan American arrangement with Yamana and Agnico Eagle Mines Limited.  All required regulatory, shareholders and court approvals, including the finall court order, have now been received and the arrangement is anticipated to be completed on or about March 31, 2023.

ON SOCIAL RESPONSIBILITY

  • Industriales Peñoles S.A.B. de C.V. and Fresnillo plc, implemented a responsible water management policy in order to reduce their footprint water. Both companies have proposed three guiding principles: resource efficiency, collaboration with other actors and transparency. Thus, Industrias Peñoles and Fresnillo plc reiterated their commitment to respect the human right to access to safe drinking water.

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 garnetite (grossular garnet skarn) in a prospect in Tamaulipas, Mexico.  Photo by Miguel A Heredia.

The Mining and Exploration News in Mexico: Highlights on the Fourth Week of February, 2023.

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By Miguel A Heredia

During the 8th week of the year (February 20th to February 26th, 2023), at least 23 press releases were announced by companies working in Mexico, with ten reporting resources and developments of their properties, six communicating production and financial results, two informing on exploration results, two commenting on Mexican issues, one disclosing deals and corporate issues, one announcing financing issues, and one discussing social issues. ON MEXICO ISSUES, Almaden regretted the decision of Mexico´s Ministry of Economy to deny the two mineral title applications which were first made by Almaden in 2002 and 2008, and which in turn led to the grant of mineral titles in 2003 and 2009, respectively. GoGold, Bear Creek, GR Silver, and Guanajuato Silver reported the best drilling intercepts in Mexico on the fourth week of February, 2023. ON EXPLORATION, In Sonora, Tocvan released results from surface channel sampling of selected area for a bulk sample at its Pilar project.  In Coahuila, Monumental Minerals provided an update and defined drill targets at its Jemi Heavy Earth Rare Element project. ON MINING, Coeur reported Q4 and full year 2022 production and financial results from its Palmarejo mine in Chihuahua. Starcore announced Q3, 2023 production results from its San Martin mine in Queretaro. Equinox provided 2023 guidance for its Los Filos mine in Guerrero. Bear Creek announced 2023 production guidance for its Mercedes mine in Mexico. Gatos Silver released 2023 production and cost guidance for its Cerro Los Gatos mine in Chihuahua. First Majestic reported Q4 and full year 2022 production and financial results from their Mexican mine operations. ON FINANCING, Silver Tiger closed its previously announced bought deal offering for gross proceeds of approximately CAD $18M (El Tigre project, Sonora). ON RESOURCES AND DEVELOPMENT, GoGold reported additional drilling results from Los Ricos South, within the Eagle and Main Deposits in Jalisco. Guanajuato Silver announced drill results from its San Ignacio mine in Guanajuato. Alamos Gold reported Mineral Reserves and Resources for the year-ended 2022 at its Mulatos project, Sonora. Bear Creek released results of recent drilling from its Marianas and Rey de Oro deposits at its Mercedes mine in Sonora. Chesapeake announced updated Minera Resource Estimate for its world class Metates deposit in Durango.  Minera Alamos informed the commencement of drilling at its Santana project in Sonora. GR Silver reported underground drilling results from 35 holes drilled as part of the 2022 infill and exploratory drilling program conducted at its Plomosas project in Sinaloa. Silver Dollar identified five new mineralized target areas at its la Joya project in Durango. Regency Silver announced that two follow-up holes down-dip were completed at its Dios Padre project in Sonora. Vizsla provided a year-end 2022 summary of its activities carried out at its flagship Panuco project in Sinaloa.  ON DEALS AND CORPORATE ISSUES, Minera Alamos granted stock options to its management team, Board of Directors, and certain consultants (Santana project, Sonora).  ON SOCIAL RESPONSIBILITY, Almaden signed a cooperation agreement with the Ejido Santa Maria Zotoltepec, the ejido located closest to its Ixtaca project in Puebla.

ON MEXICO ISSUE

  • Almaden Minerals Ltd., regretted the decision of Mexico´s Ministry of Economy to deny the two mineral title applications which were first made by Almaden in 2002 and 2008, and which in turn led to the grant of mineral titles in 2003 and 2009, respectively. These mineral titles underpin the Ixtaca deposit which was discovered by Almaden in 2010. As previously reported, these mineral titles were reduced to application status as a result of an early 2022 decision of Mexico’s Supreme Court of Justice (SCJN). Almaden believes that this action by the Secretariat of Economy is inconsistent with the Mexican Mining Law, the SCJN decision, and international law. The Company expects to submit arguments challenging the Secretariat of Economy’s submissions to the District Court within the next few days.
  • GoGold Resources Inc., Bear Creek Mining Corporation, GR Silver Mining Ltd, and Guanajuato Silver Company Ltd reported the best drilling intercepts in Mexico on the fourth week of February, 2023. Details are shown in the table below:

ON EXPLORATION

  • Tocvan Ventures Corp., released results from surface channel sampling of selected area from an up to 1,000 tonnes of oxide-gold bulk sample at its Pilar project in Sonora. Channel sampling was completed every 5m perpendicular to exposed mineralization and alteration at surface along the Main Zone and 4-T trends. Eight locations were sampled to test varying levels of exposed mineralization, all eight trench locations returned anomalous gold and silver values. Highlights include TR-2023-001 where seven samples over a 35m trend returned an average grade of 2.2 g/t Au and 14 g/t Ag, ranging from 8.3 g/t Au to 0.1 g/t Au; TR-2023-002 where five samples over a 20m trend returned  an average grade of 2.8 g/t Au and 9 g/t Ag, ranging from 7.1 g/t Au to 0.7 g/t Au; and TR-23-007 where five samples along a 25m trend returned an average grade of 2.2 g/t Au and 30 g/t Ag ranging from 7.3 g/t Au to 0.1 g/t Au. “Bulk Sample material will be extracted and prepared for processing by heap-leach method at a private mining operation less than 25km to the west of Pilar”.
  • Monumental Minerals Corp., provided an update and defined drill targets at its Jemi heavy earth rare element project, located in Coahuila State. The exploration program carried out by the exploration team of the company consisted of detailed mapping and rock sampling, regional stream sediment sampling, ground radiometric geophysical surveys, and lithogeochemical sampling. The exploration effort has been focused on the Jemi dikes and Veladora Norte areas, which host peralkaline intrusion related REE mineralization. “Of the 188 samples with assay results, over one third (76 samples) returned values greater than 0.15% total rare earth oxide (TREO), including 5 samples that returned values greater than 1.0% TREO to a maximum value of 2.4% TREO. The average TREO for all samples is 0.21%, and a minimum value of 9 parts per million (ppm), which was returned in an iron-oxide/calcite vein”. This rock sampling has defined a series of high priority drill targets.

ON MINING

  • Coeur Mining Inc., reported Q4 and full year 2022 production and financial results from its Palmarejo mine in Chihuahua. On Q4, 2022 the company milled 554,247 tonnes of 1.59 g/t Au and 98 g/t Ag with metallurgical recoveries of  92.4% and 85% respectively to produce approximately 26K Oz Au and 1.49M Oz Ag. It sold 25.2K Oz Au and 1.49M Oz Ag at an average realized price of USD $1,519 per Oz Au and USD $21.10 per Oz Ag. Coeur reported metal sales of USD $69.5.4M; cost applicable to sales (CAS) of USD $47.1M; adjusted CAS per Oz Au of USD $1,027 and adjusted CAS per Oz Ag of USD $14.23; exploration expense of USD $1.5M; cash flow from operating activities of USD $18.9M; total capital expenditures of USD $8.1M; and free cash flow of USD $10.8M. On the full year 2022,  Coeur milled approximately 2.2M tonnes of 1.65 g/t Au and 113 g/t Ag with metallurgical recoveries of 92.1% and 84.2% respectively to produce approximately 106.8K Oz Au and 6.71M Oz Ag. It sold 107.1K Oz Au and  6.7M Oz Ag at an average realized price of USD $1,471 per Oz Au and USD $21.78 per Oz Ag. Coeur reported metal sales of USD $303.4M; cost applicable to sales (CAS) of USD $1822.6M; adjusted CAS per Oz Au of USD $883 and adjusted CAS per Oz Ag of USD $13.05; exploration expense of USD $6.6M; cash flow from operating activities of USD $88.4M; total capital expenditures of USD $42.6M; and free cash flow of USD $45.8M.
  • Starcore International Mines Ltd., announced Q3, 2023 production results from its san martin mine in Queretaro. The company milled 58,562 tonnes of 1.29 g/t Au and 9 g/t Ag with metallurgical recoveries of 85.24% and 48.95% respectively to produce 2,182 Oz AuEq.
  • Equinox Gold Corp., provided 2023 guidance for its Los Filos mine in Guerrero. The company expects to produce between 160K-180K Oz Au at cash and all includes sustaining cost of USD $1,460-USD $1,620 and USD $1,680-USD $1,865 per Oz Au produced respectively; and a sustaining cost of USD $40M.
  • Bear Creek Mining Corporation announced 2023 production guidance for its Mercedes mine in Mexico. The company expects to produce 65K-75K Oz Au and 210K-243K Oz Ag during 2023 at an average cash cost per Oz Au in the range of  $830-$890 , and all in sustaining cost of $1,120-$1,290 per Oz Au.
  • Gatos Silver Inc., released 2023 production and cost guidance for its Cerro Los Gatos mine in Chihuahua. The company expects to produce between 7.4-8.2M Oz Ag, 57-63M Lb Zn in Zn concentrates, 36-40M Lb Pb in Pb concentrates, and 5.4-6.2K Oz Au in Pb concentrates (or 12.4-13.8M Oz AgEq). All in sustaining cost for silver production and silver equivalent production has been estimated in USD $11-13 and USD $15.50-17.50 per Oz payable respectively. Gatos Silver also estimated sustaining capital expenditures at USD $45M; and exploration and definition drilling expenditures at USD $13M, including drilling of the south-east deep zone and district exploration.
  • First Majestic Silver Corp., reported Q4 and full year 2022 production and financial results from their Mexican mine operations. The tables below show figures by mine for the period Q4 and full year 2022:

ON FINANCING

  • Silver Tiger Metals Inc., closed its previously announced bought deal offering of 58.1M of common shares at a price of CADS $0.31 per share for gross proceeds of approximately CAD $18M. Gross proceeds will be used to continue advancement of its El Tigre mine in Sonora, and for general corporate purposes.

ON RESOURCES AND DEVELOPMENT

  • GoGold Resources Inc., reported additional drilling results from Los Ricos South, within the Eagle and Main Deposits in Jalisco. Drilling highlights include hole LRGAG-22-110 on the Eagle Deposits with 1.43 g/t Au and 43 g/t Ag (2 g/t AuEq or 150 g/t AgEq) over 62.4m, including 4.57 g/t Au and 71 g/t Ag (5.52 g/t AuEq or 414 g/t AgEq) over 16m, including 17.05 g/t Au and 189 g/t Ag (19.57 g/t AuEq or 1,468 g/t AgEq) over 1.4m; hole LRGAG-22-113 on the Eagle Deposit with 3.29 g/t Au and 358 g/t Ag (8.06 g/t AuEq or 605 g/t AgEq), including 20.05 g/t Au and 2,000 g/t Ag (46.72 g/t AuEq or 3,504 g/t AgEq) over 1.8m, including 40 g/t Au and 3,490 g/t Ag (86.53 g/t AuEq or 6,490 g/t AgEq) over 0.8m, plus 2.32 g/t Au and 58 g/t Ag (3.09 g/t AuEq or 232 g/t AgEq) over 29.5m, including 5.20 g/t Au and 72 g/t Ag (6.16 g/t AuEq or 462 g/t AgEq) over 12.3m, including 21.10 g/t Au and 170 g/t Ag (23.37 g/t AuEq or 1,752 g/t AgEq) over 1m; hole LRGAG-22-115 on the Eagle Deposit with 1.44 g/t Au and 75 g/t Ag (2.45 g/t AuEq or 183 g/t AgEq) over 31.5m, including 3.38 g/t Au and 147 g/t Ag (5.34 g/t AuEq or 400 g/t AgEq) over 11m, including 12.85 g/t Au and 64 g/t Ag (13.70 g/t AuEq or 1,028 g/t AgEq) over 1; and hole LRGAG-22-227 on the Main Deposit with 1.28 g/t Au and 105 g/t Ag (2.68 g/t AuEq or 201 g/t AgEq) over 29m, including 4.84 g/t Au and 352 g/t Ag (9.54 g/t AuEq or 715 g/t AgEq) over 6.3m, including 24 g/t Au and 335 g/t Ag (28.47 g/t AuEq or 2,135 g/t AgEq) over 0.7m. The Eagle Deposit adjoins the Main Deposit and represents a northern extension of the previously defined Mineral Resource Estimate in the Los Ricos South PEA.
  • Guanajuato Silver Company Ltd., announced drill results from its San Ignacio mine in Guanajuato. Drilling highlights include hole UGSI22-005, the best drill hole the company has drilled at any of its mines acquired from Great Panther, with 5.11 g/t Au and 810 g/t Ag (1,219 g/t AgEq) over a true width (TW) of 4.92m, including 25.84 g/t Au and 4,914 g/t Ag (6,981 g/t AgEq) over a TW of 0.42m, including 28.23 g/t Au and 1,693 g/t Ag (3,951 g/t AgEq) over a TW of 0.42m. This significant drill result on the Melladito vein will be followed up with additional drill holes attempting to follow the down dip extension of the vein within the Company’s 2023 drill campaign. In addition, the company is in the midst of driving a 400m access ramp from Melladito to the analogous Purisima vein, which offers the potential for expanded production at San Ignacio mine. Guanajuato Silver also confirmed that it will provide an updated mineral resource estimate which is expected to be completed by Q3, 2023.
  • Alamos Gold Inc., reported Mineral Reserves and Resources for the year-ended 2022 at its Mulatos project, Sonora. The company reported Proven + Probable Mineral Reserves of 26,734,000 tons with an average grade of 1.95 g/t Au for a total of 1,679,000 Oz Au contained. Alamos Gold also announced Measured + Indicated Mineral Resources (exclusive of Mineral Reserves) for 10,302,000 tonnes of 2.52 g/t Au for a total of 502K Oz Au contained, and Inferred Resources for 1,774,000 tonnes of 1.27 g/t Au for a total of 72K Oz Au contained. In addition, the company has budgeted a total of USD $17M for exploration in 2023. This budget comprises 16,000m of surface exploration drilling at Puerto del Aire, Gap Victor, and Estrella Zones, and 34,000m for regional exploration on high priority targets, including Halcon, Halcon West, Carricito, Bajios, and Jaspe.
  • Bear Creek Mining Corporation released results of recent underground drilling from its Marianas and Rey de Oro deposits at its Mercedes mine in Sonora. Drilling highlights (reported in true widths) include hole UG-MR22-105 collared on Marianas Deposit with 5.68 g/t Au and 6 g/t Ag over 2.8m, plus 12.43 g/t Au and 12 g/t Ag over 2.8m; hole UG- MR22-106 on Mariana Deposit with 41 g/t Au and 24 g/t Ag over 0.8m; hole UG-MAR22-113 on Mariana Deposit with 8.47 g/t Au and 32 g/t Ag over 3m, plus 5.02 g/t Au and 7 g/t Ag over 3m; hole  UG-RDO23-075 collared on Rey de Oro Deposit with 10.23 g/t Au and 182 g/t Ag over 3.5m; hole UG-RDO22-077 on Rey de Oro Deposit with 15.35 g/t Au and 109 g/t Ag over 1.03m; and hole M22-934D on GAP Deposit with 6.47 g/t Au and 58 g/t Ag over 2.2m. “The Marianas and GAP drilling represent step-outs from the existing underground mining operations along the main Mercedes vein zone.  The Rey de Oro drilling represents extensions downdip and along strike of the existing reserves and underground operations”.
  • Chesapeake Gold Corp., announced updated Minera Resource Estimate (MRE) for its world class Metates deposit in Durango. The updated MRE incorporates an additional 23 holes drilled by Chesapeake and has an effective date of January 28, 2023.  It include Measured + Indicated Resources for 921.2M tonnes with average grades of 0.57 g/t Au and 14 g/t Ag for a total of 16.77M Oz Au and 423.2M Oz Ag contained, and Inferred Resources for 139.5M tonnes with average grades of 0.47 g/t Au and 13 g/t Ag for a total of 2.13M Oz Au and 59 M Oz Ag contained. “This updated MRE together with on-going metallurgical work will form the basis of a new Pre-Feasibility Study”.
  • Minera Alamos Inc., informed the commencement of drilling at its Santana project in Sonora. The company plans to drill a number of gold bearing breccia pipes in the cluster that comprise the Santana project. Some of these priority targets such as Zata and Benjamin Hill have never been drilled before. Over 10,000m of drilling in up to 80 holes have been planned by the company`s exploration team to drill-test the targets.
  • GR Silver Mining Ltd., reported underground drilling results from 35 holes drilled as part of the 2022 infill and exploratory drilling program conducted at its Plomosas project in Sinaloa. Drilling highlights ( reported in true widths) include hole PLIP22-30 with 69 g/t Ag, 2.67 g/t Au, 0.1% Pb, 0.2% Zn, and 0.2% Cu (353 g/t AgEq) over 14.1m, including 227 g/t Ag, 5.39 g/t Au, 0.3% Pb, 0.6% Zn, and 0.4% Cu (808 g/t AgEq) over 1.6m, including 219 g/t Ag, 40.18 g/t Au, 0.3% Pb, and 1% Cu (4,075 g/t AgEq) over 0.6m; hole PLIP22-52 with 2 g/t Ag and 1.91 g/t Au (182 g/t AgEq) over 8.1m, including 33 g/t Ag and 64.5 g/t Au (6,033 g/t AgEq) over 0.2M; hole PLIP22-29 with 55 g/t Ag, 1.01 g/t Au, 3.1% Pb, 4.8% Zn, and 0.2% Cu (441 g/t AgEq) over 21.7m, including 299 g/t Ag, 5.42 g/t Au, 1.8% Pb, 9.7% Zn, and 0.6% Cu (1,291 g/t AgEq) over 2.8m; hole PLIP22-35 with 20 g/t Ag, 1.8 g/t Au, 0.5% Pb, 1.5% Zn, and 0.3% Cu (221 g/t AgEq) over 14.2m, including 44 g/t Ag, 1.1 g/t Au, 10.4% Pb, 15.3% Pb, and 0.3% Cu (1,059 g/t AgEq) over 0.2m, including 46 g/t Ag, 6.09 g/t Au, 2.7% Pb, 8.4% Pb, and 0.8% Cu (1,105 g/t AgEq) over 0.8m; and hole PLIP22-42 with 30 g/t Ag, 0.76 g/t Au, 7.9% Pb, 7.9% Zn, and 0.3% Cu (669 g/t AgEq) over 8.3m, including 49 g/t Ag, 0.41 g/t Au, 7.8% Pb, 10.9% Zn, and 1.1% Cu (846 g/t AgEq) over 0.9m, including 50 g/t Ag, 1.97 g/t Au, 19.7 g/t Pb, 15.6% Zn, and 0.3% Cu (1,422 g/t AgEq) over 2.7m.
  • Silver Dollar Resources Inc., identified five new mineralized target areas at its la Joya project in Durango. These areas are located in the unexplored portion of the property and were outlined during the last exploration campaign which consisted of geological mapping and sampling. The Verde and Hueco Areas were partially drilled by a previous operator, while Dyke North, Dyke South, and South-East Areas never have been drill tested before.
  • Regency Silver Corp., announced that two follow-up holes down-dip from REG-22-01 were completed at its Dios Padre project in Sonora. Hole REG-22-01 intersected 6.84 g/t Au, 22 g/t Ag, and 0.88% Cu over 35.8m, including 13.97 g/t Au, 50 g/t Ag, and 1.11% Cu over 9.8m. Hole REG-23-14 encountered 32m of pyrite-specularite-chalcopyrite supported breccia from approximately 454-486m within a broader zone of disseminated and vein hosted mineralization approximately 25m down dip from REG-22-01, while hole REG-23-15 intersected 120m of specularite-pyrite-chalcopyrite supported breccia from approximately 400-520m within a broader zone of disseminated and vein hosted mineralization approximately 85m down-dip from REG-22-01 and about 62m down-dip from REG-23-14.
  • Vizsla Silver Corp., provided a year-end 2022 summary of its activities carried out at its flagship Panuco project in Sinaloa, and outlined the goals for 2023. During Q1, 2022 the company announced its initial mineral resource estimate (MRE) centered on the western portion of the Panuco district.  In 2022, Vizsla completed over 121,000m of additional drilling to conclude in an updated MRE on January 2023, with a significant increase in gold and silver as well as in the overall grade. The company also discovered other near-surface, high-grade structures, demonstrating the growth potential outboard of the known resource boundaries. “For 2023, our focus is on incremental expansion and de-risking of the current resource base. With a fully funded +90,000m drill program utilizing seven drill rigs, we plan to update the current Panuco resource estimate in the second half of 2023, which will be followed in due course by an initial Preliminary Economic Assessment”.

ON DEALS AND CORPORATE ISSUES

  • Minera Alamos Inc., granted stock options to its management team, Board of Directors, and certain consultants. The Board of Directors approved the issuance of a total of 2.25M options at an exercise price of $0.51, and 6.9M at an exercise price of $0.45. All the options will expire in 5 years and vest 50% on the first anniversary of their grant and 50% on the second anniversary (Santana project, Sonora).

ON SOCIAL RESPONSIBILITY

  • Almaden Minerals Ltd., signed a cooperation agreement with the Ejido Santa Maria Zotoltepec, the ejido located closest to its Ixtaca project in Puebla, to support an agro-technological package aimed at sustainable plan nutrition and soil enrichment.

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

On the picture above, an outcrop of a flow banded rhyolite in a low-sulphidation epithermal veins prospect in Sonora Mexico.  Photo by Miguel A Heredia.

The Mining and Exploration News in Mexico: Highlights on the Third Week of February 2023

/ Gambusino Prospector / Leave a comment

By Jorge Cirett

During the 7th week of the year (February 13th to February 19th, 2023), 13 companies working in Mexico released news on their properties. One company informed on a new exploration model for its projects. Two companies informed on Q4 2022 production and 2023 guidance. One company closed a first tranche on a financing round, while one other closed the previously announced private placement and one more granted shares and stock options to board members. One company filed a PFS on its project and one more updated on the resource estimate for one of its properties. Two companies informed on drilling results and work on their advanced properties. Two companies informed they have earned 50% interest in a project, and one other received notice of claims totaling US$19.7 M. ON MEXICO ISSUES, The Mexican president continues to assert his power by claiming that all lithium reserves will pass to a government’s company. The Sonora State Economy Secretary vigorously backed the importance of the mining industry in the State. ON EXPLORATION, in Coahuila, Southern Empire Resources claims mineralization at its properties in Durango might be of Carlin style. ON MINING, Gold Resource and Capstone Copper released Q4 2022 production or/and financial production reports and guidance for 2023. ON FINANCING, Reyna Silver closed the first tranche of its private placement (C$5 M), Mag Silver completed its bought deal private placement (C$23 M) and Orogen Royalties granted shares and stock options to independent board members. ON RESOURCES AND DEVELOPMENT, Discovery Silver filed the PFS on the Cordero project in Chihuahua. Vizsla Silver reported drilling results at Panuco, in Sinaloa. Avino Silver updated the mineral resource estimate for all deposits at its Avino property in Durango. Impact Silver released drilling results from the Aurora 2 zone at its Capire project in Guerrero. ON DEALS AND CORPORATE ISSUES, Silver Spruce Resources and Colibri Resource earned 50% ownership in the Diamante property in Sonora. Magna Gold received notices on claims totaling $19.7 M. ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUES

  • The Mexican president, Andrés M. López Obrador announced on one of its daily propaganda conferences: “I am to sign the decree to forward the lithium concession, all the reserves, to the Energy Secretariat”. In April 2022 the government declared lithium as a public utility mineral, and its exploitation to be only possible under the public enterprise Litio para México.
  • Margarita Vélez Rocha, the Sonora Economy Secretary, recognized the importance of the mining sector in the State, pointing that it directly employs more than 26 thousand workers and more than 120 thousand indirectly, with 39 municipalities having mining activities and 23 on which it is the main economic activity.

ON EXPLORATION

  • Southern Empire Resources Corp. announced that synchrotron radiation micro-X-ray fluorescence mineralogical studies of drill core samples from its Pedro project in Durango reveal mineralogical similarities to deposits of the Carlin belt in Nevada. Gold mineralization at Centauro and Pedro projects, both in Durango, is associated to hematite-stained, weak to moderately silicified brecciated conglomerate of the Eocene to Oligocene Ahuichila Formation. Historic drilling results include intervals like 5.60 m @ 0.59 gpt Au; 19.82 m @ 0.31 gpt Au; 15.23 m @ 0.58 gpt Au; 50 m @ 0.28 gpt Au; 88.10 m @ 0.24 gpt Au; 112.40 m @ 0.12 gpt Au, with anomalous Ag, As, Sb Tl and Hg.

ON MINING

  • Gold Resource Corp. issued 2023 guidance and suspension of dividends. For 2023 the company expects to produce 17 to 19 K Oz Au, 0.9 to 1.0 M Oz Ag (or 30 to 32 K Oz AuEq) at cash cost $1,000 to $1,050 per AuEq Oz and an AISC of $1,250 to $1,350 per AuEq Oz (Consolidated: $1,650 to $1,750 per AuEq Oz). “the lower grade profile is expected to continue through 2023 and is projected to negatively impact operating cash flows and total cash costs per gold equivalent ounce”, and accordingly “will suspend the quarterly dividend until such time that it may become practicable to reinstate” (Don David, Oaxaca).
  • Capstone Copper Corp. reported financial results for Q4 2022 and year 2022, including figures from its Mexican operations. At Cozamin, in Zacatecas, 3,430 tpd were milled during the quarter to produce 5.8 K tonnes of copper, totaling 24.5 K tonnes Cu on the year at cash cost $1.40 per Lb Cu (which is the lowest cost for Capstone operations). Cash and cash equivalents stood at $170.3 M by the end of the period.

ON FINANCING

  • Reyna Silver Corp. announced the closing of the first tranche of its bought deal private placement for gross proceeds of C$5 M (Guigui and Batopilas, Chihuahua).
  • Mag Silver Corp. completed the previously announced bought deal private placement for aggregate gross proceeds of C$23 M (Juanicipio (44%), Zacatecas).
  • Orogen Royalties Inc. authorized the granting of 156 K restricted share units, 156 K deferred share units and 238 K stock options to independent board members (Royalties on Ermitaño, Sonora).

ON RESOURCES AND DEVELOPMENT

  • Discovery Silver Corp. filed the pre-feasibility study (PFS) on its Cordero property in Chihuahua.
  • Vizsla Silver Corp. reported results from 19 holes on the Copala structure of the Panuco project in Sinaloa. The results represent step-out and infill drilling on the Copala structure that has now been traced for 1,110 m of strike and 400 m downdip. Highlighted true width intervals comprise 2.50 m @ 1,673 gpt Ag, 5.39 gpt Au; 3.35 m @ 428 gpt Ag, 3.64 gpt Au; 2.40 m @ 288 gpt Ag, 1.73 gpt Au; 13.70 m @ 270 gpt Ag, 1.48 gpt Au; 6.00 m @ 648 gpt Ag, 4.29 gpt Au; 3.00 m @ 247 gpt Ag, 2.17 gpt Au; 2.90 m @ 1,010 gpt Ag, 5.91 gpt Au; 6.20 m @ 242 gpt Ag, 1.15 gpt Au; 4.61 m @ 453 gpt Ag, 9.16 gpt Au; 6.00 m @ 176 gpt Ag, 1.12 gpt Au.
  • Avino Silver & Gold Mines Ltd. completed an updated mineral resource estimate for the Avino ET, San Gonzalo, La Potosina, Guadalupe and Oxide Tailing deposits at its Avino property in Durango. Measured and indicated resources comprise 34.7 M tonnes @ 63 gpt Ag, 0.54 gpt Au, 0.39% Cu (or 144 gpt AgEq) containing 70.0 M Oz Ag, 596.6 K Oz Au, 301.4 M Lb Cu. Inferred resources stand at 19.3 M tonnes @ 46 gpt Ag, 0.34 gpt Au, 0.37% Cu (112 gpt AgEq) containing 28.4 M Oz Ag, 212.6 K Oz Au, 158.5 M Lb Cu. Another nearby property, La Preciosa, is also held by Avino and contains 98.6 M Oz Ag, 189.2 K Oz Au in indicated resources and 21.3 M Oz Ag, 35.5 K Oz Au in inferred resources.
  • Impact Silver Corp. announced drill results from the Aurora 2 zone, 1.3 km northeast of the Capire processing plant (in Guerrero), and 16 km south of the company’s active mining operations at the Royal Mines of Zacualpan in Estado de Mexico. The mineralization at the site consists of volcanogenic massive sulfides (VMS) lenses, extending the zone to the west. Highlighted true width intervals comprise 2.39 m @ 106 gpt Ag, 0.42 gpt Au, 0.3% Pb, 0.8% Zn; 3.73 m @ 66 gpt Ag, 0.40 gpt Au, 0.2% Pb, 0.5% Zn; 7.48 m @ 128 gpt Ag, 0.42 gpt Au, 0.8% Pb, 1.8% Zn; 1.01 m @ 138 gpt Ag, 0.49 gpt Ag, 0.5% Pb, 1.1% Zn; 7.95 m @ 63 gpt Ag, 0.52 gpt Au, 0.9% Pb, 2.8% Zn; 2.11 m @ 51 gpt Ag, 0.15 gpt Au, 0.5% Pb, 1.9% Zn; 2.38 m @ 142 gpt Ag, 0.37 gpt Au, 0.2% Pb, 0.5% Zn; 3.28 m @ 34 gpt Ag, 0.24 gpt Au, 0.4% Pb, 1.2% Zn.   

ON DEALS AND CORPORATE ISSUES

  • Silver Spruce Resources Inc. and Colibri Resource Corp. reported the companies have earned 50% ownership interest in the Diamante project in Sonora, while Vendor Bimsa Minera SA de CV retains 50% ownership in the Property. “The 1,057-hectare Diamante property is located adjacent to the Jackie property, a joint venture with Colibri, which covers 1,113 hectares, providing the company with a total of 2,170 hectares of exploration ground. Diamante hosts a number of historical showings and combined with mineralization on the Mezquite and Jackie properties exhibit the geological characteristics of epithermal low to intermediate sulfidation Ag-Au (Pb-Zn)”. With completion of the initial earn-in, Silver Spruce and Colibri together will become equal joint venture partners with the Vendor in BIMCOL Minera, with a six months exclusive period to purchase the remaining 50% by paying either US$2.1 M or US$1.45 M and 2% NSR.
  • Magna Gold Corp. informed the receipt of notices of claims from three of its creditors, Cominivi Servicios S.A. de C.V., Covoro Mining Solutions Mexicana S. de R. L. de C.V. and Sidney W. French S.A. de C.V. for US$6.49 M. Also, a notice of commencement of arbitration with Peal México, S.A. de C.V. was received on a claim of US$13.2 M (San Francisco, Sonora).

ON SOCIAL RESPONSIBILITY

  • No Relevant News.

On the image below: Quartz specularite veining cut by late quartz veinlet on a copper project in the Sonoran Desert. Picture by Abraham López.

The Mining and Exploration News in Mexico: Highlights on the First Week of February 2023

/ Gambusino Prospector / Leave a comment

By Jorge Cirett

During the 5th week of the year (January 30th to February 5th, 2023), 15 companies working in Mexico released news on their properties. One company informed on metallurgical results from its project, one company posted consolidated 2022 production and three companies provided updates on 2022 work on their properties and plans for 2023. One company began trading on the OTCQB in USA and two companies are to undertake private placements. Three companies informed on drilling results and work on their advanced properties, one other on the signing of an option agreement on the acquisition of a property and one more provided its bi-weekly status report. ON MEXICO ISSUES, mining companies are among the best compliers on environmental, social and governance strategies. ON EXPLORATION, in Chihuahua, Radius Gold informed on metallurgical results by associate Fresnillo PLC on its Plata Verde property. ON MINING, Altaley Mining provided an update on its 2023 plans for its Tahuehueto (Durango) and Campo Morado (Guerrero) properties. Minera Alamos informed on the late 2022 commercial production and some operational hurdles at its Santana project in Sonora. SilverCrest Metals released Q4 2022 production results and informed on relevant mining issues at Las Chispas, in Sonora. Capstone Copper presented 2023 production guidance for its Cozamin mine in Zacatecas. ON FINANCING, Excellon Resources commenced trading on the OTCQB in USA. GRSilver Mining and Reyna Silver are undertaking private placements for $3 M and C$4 M respectively. ON RESOURCES AND DEVELOPMENT, Orla Mining provided an update on 2022 exploration activities and plans for 2023 at its Camino Rojo project in Zacatecas, releasing impressive drill results from the sulfide zone. Alamos Gold released drilling results from Puerto del Aire deposit in the Mulatos project in Sonora, with the second highest gold intercept in Mexico on the last nine months. Oroco Resource announced drilling results from the South zone of the Santo Tomás project in Sinaloa. ON DEALS AND CORPORATE ISSUES, Aloro Mining signed an option agreement with Cuesta del Cobre to acquire the Quitovac project in Sonora. Gatos Silver complied with the by-weekly status report. ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUES

  • According to Miranda Partners, mining companies are among the best positioned on environmental, social and governance strategies

ON EXPLORATION

  • Radius Gold Inc. informed on metallurgical results from its Plata Verde project in Chihuahua. Fresnillo PLC has an exclusivity agreement on the project since mid-2022 to negotiate an option agreement to earn a 70% interest in the project. Approximately 100 kg of bulk samples were collected from Mina Mojonera and Mina Real underground workings for metallurgical testing by cyanide leaching and flotation. The samples were classified as “soft” for ball mining, cyanide leach tests reported average 93% Ag recovery, “Flotation studies generate Pb/Cu concentrates with a high grade of silver and good values of lead and copper with recovery of around 85% for silver, 52% for lead and 64% for copper”, the combination of flotation + tailings cyanidation averaged 97% Ag recovery. “Galena is the main sulfide, which registered around 0.11% by weight, chalcocite 0.12%, and sphalerite, pyrite, chalcopyrite and arsenopyrite, which totaled around 0.06%, were detected to a lesser extent. As silver species, stromeyerite, argentite and a low proportion of AgHg were detected. Non-sulfur gangue represented 99.6% by weight mainly as baryte, calcite, albite, and quartz”.

ON MINING

  • Altaley Mining Corp. provided an update on its operations plans for 2023. At Tahuehueto, in Durango, a new consulting construction manager was appointed and recruiting of a new site general manager is in process. The construction of the initial 500 tpd operation is to be completed on 2Q23 and expansion to 1,000 tpd nameplate capacity operation on 4Q23. “Currently the mine is in pre-production, averaging 300 tpd”. At 1,000 tpd capacity the mine is projected to produce 42.8 K Oz AuEq per year, generating a yearly EBITDA of US$28.1 M. For the Campo Morado mine in Guerrero, plans have “strategically shifted focus” towards mining of higher-grade copper orebodies. Campo Morado EBITDA for 2023 is projected to be US$15.9 M. The company expects to progress on implementing recommendations made by Ausenco to improve plant performance at Campo Morado. The metals production for 2023 from Campo Morado is expected to be 15,433 tonnes Zn, 2,967 tonnes Cu, 2,142 tonnes Pb, 184 Kg Au (5,916 Oz Au), 25.8 tonnes Ag (829.8 K Oz Ag) while guidance at Tahuehueto is 1,903 tonnes Zn, 545 tonnes Cu, 1454 tonnes Pb, 289 kg Au (9,291 Oz Au), 6,258 kg Ag (201.2 K Oz Ag).
  • Minera Alamos Inc. informed on the completion in the second half of 2022 of the initial thresholds for commercial production at the Santana project in Sonora, including gold recovery rates from the heap leach pad and monthly mining rates. Final approvals for resubmitted applications are pending for the next phase of pad expansion and full access to the Nicho deposit. Due to water scarcity the company is giving priority at this time to pre-stripping activities, and competing work and plans to proceed with the expansion when the permits are received. The mine was built for US$10 M, most of which has been paid back by the operational performance, which has demonstrated the ability to operate at 10,000 tpd of ore and waste moving. Overall gold recoveries are above 70% for material under 45-60 days leach with residual leach ongoing.
  • SilverCrest Metals Inc. reported Q4 2022 operational results and an update on activities at its Las Chispas mine in Sonora, where commercial production was announced on November 1, 2022. During the quarter 104.3 K tonnes @ 3.67 gpt Au, 382 gpt Ag were processed, recovering 96.9% Au, 93.3% Ag to produce 11,940 Oz Au, 1.20 M Oz Ag (2.23 M Oz AgEq). Underground mining averaged 700 tonnes per day, with resue mining planned for some stopes currently being replaced either by cut and fill or long hole mining. Ore stockpiles stood at 261.6 K tonnes at the end of the period. The company expects to release an updated technical report on Q2 2023. At the end of the quarter cash and cash equivalents represented $50.8 M and total debt $50 M.
  • Capstone Copper Corp. announced consolidated copper production for 2022, without disclosing production by property. The 2023 guidance aims for production at the Cozamin mine in Zacatecas to be in the 23 to 25 K tonnes Cu, with a cash cost of $1.50 – $1.65 per Lb Cu, the lowest for all its operations in Arizona, Mexico and Chile.

ON FINANCING

  • Excellon Resources Inc. commenced trading on the OTCQB Venture Market in USA, while continuing to trade also at the Toronto Stock Exchange (La Negra, Hidalgo).
  • GRSilver Mining Ltd. proposes to undertake a non-brokered private placement to raise total gross proceeds of up to $3 M (Plomosas, Sinaloa).
  • Reyna Silver Corp. entered into an agreement with Eight Capital as lead underwriter and on behalf of a syndicate of underwriters in connection with a bought deal private placement financing for aggregate gross proceeds of C$4 M (Guigui and Batopilas, Chihuahua).

ON RESOURCES AND DEVELOPMENT

  • Orla Mining Ltd. provided an update on 2022 exploration activities at Camino Rojo in Zacatecas, and an overview on 2023 exploration plans. Drilling the Camino Rojo Sulfides returned good gold intercepts, of which the highlighted ones comprise 64.0 m @ 4.66 gpt Au; 79.0 m @ 2.76 gpt Au; 70.0 m @ 2.81 gpt Au; 87.0 m @ 1.92 gpt Au; 73.5 m @ 1.74 gpt Au; 40.5 m @ 3.83 gpt Au; 16.0 m @ 6.94 gpt Au; 37.0 m @ 3.78 gpt Au; 49.5 m @ 2.71 gpt Au. Drilling below the current mineral resource has identified feeder-like structures, with intersects of up to 22.9 m @ 4.02 gpt Au, 1.5% Zn. Drilling of regional targets has returned up to 7.10 m @ 0.54 gpt Au and 2.35 m @ 1.35 gpt Au at the Guanamero target area. “Further drilling is planned in 2023 to test for zones of oxidized mineralization that could potentially allow for local expansion of the oxide pit”. For the Camino Rojo sulfides zone, a 34,000 m of infill drilling in 57 holes is planned, with 20% to test the deep potential, and 6,500 m more on extensions to the Oxide zone to expand resources. On regional exploration, 15,000 to 20,000 of RC drilling and 2,000 to 5,000 m of core drilling are planned to test multiple targets.
  • Alamos Gold Inc. reported results from surface exploration drilling at Puerto del Aire (PDA), an underground deposit within the Mulatos project in Sonora. Highlighted true width intervals comprise 25.95 m @ 33.40 gpt Au (an impressive 866.7 gpt*m); 3.25 m @ 67.58 gpt Au; 6.20 m @ 18.33 gpt Au; 1.50 m @ 75.50 gpt Au; 2.35 m @ 36.50 gpt Au; 1.40 m @ 60.20 gpt Au; 6.75 m @ 11.16 gpt Au; 9.00 m @ 6.73 gpt Au. The results extend high-grade Au mineralization outside the resource zone that holds 556 K Oz Au in reserves and resources grading close to 5 gpt Au. Since the last mineral resource estimate was released on the PDA deposit in 2021, 92 drill holes totalling 27,117 m have been completed. The $17 M exploration budget at Mulatos includes $4 M for drilling focused on expanding resources at PDA.
  • Oroco Resource Corp. announced drilling results from the South zone at its Santo Tomás project in Sinaloa. The 2 km long zone is subdivided in three segments: northern, middle and southern, with the current drilling reported from the middle and southern segments. Highlighted core length results, that are reported to be within 10% of true width, comprise 127.0 m @ 0.37% Cu, 0.049 gpt Au; 146.6 m @ 0.37% Cu, 0.073 gpt Au; 82.0 m @ 0.37% Cu, 0.032 gpt Au; 146.0 m @ 0.24% Cu, 0.014 gpt Au; 66.0 m @ 0.26% Cu, 0.009 gpt Au, 180 ppm Mo; 47.0 m @ 0.35% Cu, 0.018 gpt Au, 80 ppm Mo; 179.2 m @ 0.36% Cu, 0.022 gpt Au, 200 ppm Mo; 349.1 m @ 0.36% Cu, 0.027 gpt Au, 60 ppm Mo; 187.9 m @ 0.51% Cu, 0.038 gpt Au, 120 ppm Mo; 234.3 m @ 0.34% Cu, 0.017 gpt Au, 120 ppm Mo. Drilling on the southern zone segment has intersected western dipping dikes and mineralization, overprinted by hydrothermal breccia bodies and a wide array of stockwork vein and fracture mineralization.

ON DEALS AND CORPORATE ISSUES

  • Aloro Mining Corp. signed an option agreement with Cuesta del Cobre S. de R.L. de C.V. to acquire the Quitovac project in Sonora. The terms include cash and shares amounts of $35 K, 200 K shares within 30 days of approval; $45 K and 200 K shares on year one; $55 K and 200 K shares on year two; $65 K and 200 K shares on year three; $75 K and 300 K shares on year four; $100 K and 400 K shares on year five; $200 K and 500 K shares on year six. The project covers 2,644 hectares with 14 claims, with the orogenic gold mineralization having been tested with 12,450 m of drilling in 100 holes by four companies between 1987 and 2012.
  • Gatos Silver Inc. provided the bi-weekly status report in accordance with National Policy 12-203-Management Cease Trade Orders. Ernst & Young LLP was appointed on November 14, 2022 as the company’s independent registered public accounting firm. “The Company expects all delayed filings, including the audit of the financial statements required to be included in its annual report on Form 10-K for the year ended December 31, 2021, and the reviews of its quarterly reports on Forms 10-Q for the quarters ended March 31, 2022, June 30, 2022 and September 30, 2022, to be completed before the end of the first quarter of 2023” (Cerro Los Gatos, Chihuahua).

ON SOCIAL RESPONSIBILITY

  • No Relevant News.

On the image below: Quartz specularite vein on a copper project in the Sonoran Desert. Picture by Abraham López.

The Mining and Exploration News in Mexico: Highlights on the Fourth Week of January, 2023.

/ Gambusino Prospector / Leave a comment

By Miguel A Heredia

During the 4th week of the year (January 23rd to January 29th, 2023), at least 21 press releases were announced by companies working in Mexico and a couple of news published by the media. One company informed on project exploration work, four companies released Q4 2022 production reports, one company elaborated on its 2023 plans, one company announced a financing round, one other elaborated on its share consolidation process and one more cancelled a previously announced financing round. Seven companies reported on work at their advanced or operating properties, three organizations disclosed personnel appointments and one more on a deal about the sale of a tailings property. ON MEXICO ISSUES, Fortuna Silver provided an update on its San Jose mine environmental impact authorization.  ON EXPLORATION, In Sonora, Tocvan and its JV partner Colibri begun the preparation for an initial bulk sample at its Pilar property. ON MINING, Mag Silver, Fresnillo PLC, Santacruz Mining and Guanajuato Silver reported Q4 and full year 2022 production results. Avino provided its outlook for 2023.  ON FINANCING, Heliostar announced a non-brokered private placement of up to CAD $16.28M (Ana Paula project, Guerrero), Fabled Silver is to consolidate its shares on a 5 to 1 ratio, and Tarachi Gold cancelled its previously announced financing round. ON RESOURCES AND DEVELOPMENT, Silver Tiger released results from drilling at its El Tigre project in Sonora. GoGold presented drilling results from the Eagle and Main Deposits within its Los Ricos South project in Jalisco. Bendito Resources is to prepare a technical report on its Oposura project in Sonora. Gatos Silver updated on extension and resource definition drilling at its Cerro Los Gatos property in Chihuahua. Discovery Silver filed a PFS report on its Cordero project, in Chihuahua. Vizsla Silver updated the mineral resource estimate for its Panuco project in Sinaloa, with a significant increase. Endeavour Silver filed resource estimate updates on its Guanaceví and Bolañitos projects, in Durango and Guanajuato respectively. ON DEALS AND CORPORATE ISSUES, Discovery Silver announced the appointment of its new CEO and the promotion of Román Solis to VP Mexico (Congratulations Román!). Altaley announced the appointment of its new CFO (Tahuehueto project, Durango). Tarachi Gold is selling its Magistral project in Durango to Compañía Minera de Atocha. Vizsla Silver appointed Charles Funk as Lead Technical Advisor, and Michael Pettingeli was promoted to Senior VP (Panuco, Sinaloa). ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUES

  • Fortuna Silver Mines Inc., provided an update on its San Jose Mine´s environmental impact authorization. It informed that the Mexican Federal Administrative Court has granted a provisional injunction to Compañía Minera Cuzcatlán, Fortuna´s Mexican subsidiary, which allows the San Jose Mine to continue to operate under the terms of the 12-year environmental impact authorization (EIA). It is expected that the Court will decide on the grant of a permanent injunction, within the coming weeks, which would continue in effect until the Court has ruled on the revocation of the EIA.     

ON EXPLORATION

  • Tocvan Ventures Corp., and its JV partner Colibri Resource Corp., begun the preparation for an initial bulk sample at its Pilar property in Sonora. Over 1,000 tonnes of oxide-gold material will be extracted from select areas exposed at surface. This bulk sample will be prepared in February for processing by heap-leach method at a private mining operation less than 25km to the west of Pilar. “Data generated from the bulk sample will provide an understanding of the expected head-grades and recovery percentages of gold and will help optimize future onsite production facilities”.

ON MINING

  • Mag Silver Corp., reported Q4 and full year 2022 production results from its Juanicipio project in Zacatecas (56% / 44% Fresnillo PLC and Mag Silver Corp. respectively). The company processed 165,786 tonnes from underground and initial stopes at an average grade of 415 g/t Ag to produce 1.86M Oz Ag and 5,380 Oz Au, and 646,148 tonnes in the full year 2022 at an average grade of 520 g/t Ag to produce 9.25M Oz Ag and 22,252 Oz Au. “The associated lead and zinc production will be reported with MAG Silver’s year end filings”.
  • Avino Silver & Gold Mines Ltd., provided its outlook for 2023, and presented a summary of the major milestone achieved in 2022. Avino plans to process 700K-750K tonnes in the full year from both Avino Mine and La Preciosa stockpiles to produce between 2.8M and 3.2M Oz AgEq. The company estimated a total capital budget of USD $9-$11.5M and a Corporate budget of USD $0.5M (USD $9.5-$12M consolidated), of which USD $5-$6M will be Grow Capital, USD $1-$1.5M for Exploration & Evaluation, and USD $3-$4M for Sustaining Capital & Mine Development. The company also reported that “its internal estimate for production was between 2.2-2.4M Oz AgEq and capital expenditures for 2022 were expected to total between USD$7M and USD $9M, excluding the acquisition of La Preciosa. In addition, it included a drill program targeting areas and veins on the property, including the recommended drilling on the Oxide Tailings Project, the construction of the dry-stack tailings facility, and metallurgical projects to help improve recovery rates”.
  • Fresnillo PLC. released Q4 2022 production results. During the period 12.5 M Oz Ag, 167,969 Oz Au, 12,756 tonnes Pb, 23,060 tonnes Zn were produced, taking the yearly total to 53.7 M Oz Ag (including Silverstream), 635,926 Oz Au, 52,950 tonnes Pb, 99,153 tonnes Zn. At the Fresnillo mine in Zacatecas, 624.1 K tonnes were processed averaging 197 gpt Ag, 0.58 gpt Au, 1.0% Pb, 2.4% Zn to produce 3.6 M Oz Ag, 8,314 Oz Au, 5,609 tonnes Pb, 11,097 tonnes Zn during the quarter. At Saucito, in Zacatecas, 508.4 K tonnes were processed @ 208 gpt Ag, 1.39 gpt Au, 0.9% Pb, 1.6% Zn, to produce 3.03 M Oz Ag, 18,076 Oz Au, 3,859 tonnes Pb, 5,868 tonnes Zn. At the Pyrites Plant in Zacatecas, 32.2 K tonnes were processed @ 145 gpt Ag, 1.19 gpt Au, to produce 111 K Oz Ag, 374 Oz Au. At Cienega, in Durango, 256.9 K tonnes were processed @ 1.20 gpt Au, 139 gpt Ag, 0.56% Pb, 0.94 % Zn, to produce 9,122 Oz Au, 0.98 M Oz Ag, 930 tonnes Pb, 1,372 tonnes Zn. At San Julián in Chihuahua, production during the quarter was 11,907 Oz Au, 3.11 M Oz Ag. At Herradura in Sonora 27.44 M tonnes were hauled, 7.08 M tonnes processed @ 0.71 gpt Au, 1.35 gpt Ag, to produce 103,826 Oz Au, 191 K Oz Ag. At Noche Buena in Sonora 7.3 M tonnes were hauled, 1.23 M tonnes processed averaging 0.51 gpt Au, 0.21 gpt Ag, to produce 13,331 Oz Au, 3 K Oz Ag. Attributable production (56% Fresnillo / 44% Mag Silver) from Juanicipio in Zacatecas was 1.04 M Oz Ag, 3,020 Oz Au during the quarter. The company aims to have a gold production ranging between 590 K and 640 K Oz Au in 2023.
  • Santacruz Silver Mining Ltd. reported Q4 and full year production, including figures from its Mexican operations. At Zimapan, in Hidalgo, 215 K tonnes averaging 71 gpt Ag, 2.19% Zn, 0.63% Pb, 0.40% Cu were processed, recovering 61.5% Ag, to produce 301.2 K Oz Ag, 3,098 tonnes Zn, 1,036 tonnes Pb, 569 tonnes Cu during the quarter. For the year, 822.1 K tonnes were processed @ 73 gpt Ag, 2.13% Zn, 0.65% Pb, 0.37% Cu, recovering 67.3% Ag to produce 1.29 M Oz Ag, 12,577 tonnes Zn, 4,450 tonnes Pb, 2,165 tonnes Cu. At Zimapan “Q4 has seen the purchase and installation of a replacement secondary crusher, commissioning of a zinc flotation column, and installation of additional concentrate filtration capacity. A Metallurgical testing program is underway to address new mineralized zones being mined, and to maximize recoveries”.
  • Guanajuato Silver Company Ltd. announced consolidated production results for the fourth quarter 2022. The production, not disclosed by operations, comes from the El Cubo mines complex, Valenciana mines complex and San Ignacio mine, in Guanajuato, and from the Topia mine in Durango. During the period 131.5 K tonnes were mined, 131.3 K tonnes milled, recovering 86.8% Ag, 84.2% Au, to produce 401.2 K Oz Ag, 3,907 Oz Au, 811.5 K Lb Pb, 1.26 M Lb Zn (or 836.4 K Oz AgEq). “Consolidated silver equivalent production in Q4 was 19% higher than the previous quarter. This increase reflects the continuing ramp-up of operations at all of GSilver’s mining assets. Total production for 2022 was 2.15 million AgEq”.

ON FINANCING

  • Heliostar Metals Limited announced a non-brokered private placement of up to 74M units at a price of CAD $0.22 per unit for gross proceeds of up to approximately CAD $16.28M or USD $12.5M. Net proceeds will be used to advance the Ana Paula development stage in Guerrero, as well as for working capital and general corporate purposes.
  • Fabled Silver Gold Corp., announced that it has received Toronto Stock Exchange Venture (TSXV) approval for the 5 to 1 consolidation of the common shares of the company. There will be no name change in conjunction with the consolidation. The post-consolidation common shares will continue to trade on the TSXV under the symbol “FCO”. (Santa Maria project, Chihuahua).
  • Tarachi Gold Corp. cancelled its previously announced private placement (Tarachi, Sonora).

ON RESOURCES AND DEVELOPMENT

  • Silver Tiger Metals Inc., released results from its ongoing drilling program being conducted at its El Tigre project, Sonora. Drilling highlights include hole ET-22-432 with 0.1 g/t Au, 39 g/t Ag, 0.01% Cu, 0.02% Pb, and 0.02% Zn (48.5 g/t AgEq) over 9.4m on the HW Gold Zone, plus 0.16 g/t Au, 399 g/t Ag, 0.43% Cu, 2.8% Pb, and 5.2% Zn (691 g/t AgEq) over 10.4m on the Sooy Vein, including 0.24 g/t Au, 1,154 g/t Ag, 1.29% Cu, 9.8% Pb, and 17% Zn (2,085 g/t AgEq) over 2,1m, plus 0.13 g/t Au, 257 g/t Ag, 0.47% Cu, 1.2% Pb, and 2% Zn (407 g/t AgEq) over 34.8m on the Sulphide Zone, including 0.13 g/t Au, 957 g/t Ag, 1.69% Cu, 3.6% Pb, and 7% Zn (1,556 g/t AgEq) over 8.2m, including 0.17 g/t Au, 1,663 g/t Ag, 4.32% Cu, 6.3% Pb, and 11.5% Zn (2,622 g/t AgEq) over 2.1m;M hole ET-22-434 with 0.39 g/t Au, 97 g/t Ag, 0.01% Cu, 0.08% Pb, and 0.01% Zn (130 g/t AgEq) over 8.5m on the HW Zone, including 2.04 g/t Au, 336 g/t Ag, 0.02% Cu, 0.2% Pb, and 0.04% Zn (497 g/t AgEq) over 1.5m, plus 0.16 g/t Au, 172 g/t Ag, 0.36% Cu, 2.1% Pb, and 2.6% Zn (354 g/t AgEq) over 13m on the Sooy Vein, including 0.19 g/t Au, 326 g/t Ag, 0.84% Cu, 4.9% Pb, and 6% Zn (735 g/t AgEq) over 5.2m, including 0.24 g/t Au, 496 g/t Ag, 1.76% Cu, 7.2% Pb, and 8.6% Zn (1,139 g/t AgEq) over 2.1m, plus 0.11 g/t Au, 377 g/t Ag, 0.32% Cu, 0.1% Pb, and 0.1% Zn (422 g/t AgEq) over 6.6m on the Sulphide Zone, including 0.2 g/t Au, 1,116 g/t Ag, 0.89% Cu, 0.2% Pb, and 0.1% Zn (1,226 g/t AgEq) over 2m, including 0.25 g/t Au, 1,859 g/t Ag, 1.44% Cu, 0.3% Pb, and 0.2% Zn (2,030 g/t AgEq) over 1m, plus 0.22 g/t Au, 606 g/t Ag, 1.13% Cu, 4% Pb, and 7.4% Zn (1,073 g/t AgEq) over 19.9m, including 0.2 g/t Au, 914 g/t Ag, 1.68% Cu, 5.9% Pb, and 12.4% Zn (1,642 g/t AgEq) over 10.5m; and hole ET-22-438 with 0.16 g/t Au, 19 g/t Ag, 0.01% Pb, and 0.01% Zn (31 g/t AgEq) over 43.5m on the HW Gold Zone, including 2.26 g/t Au, 566 g/t Ag, 0.02% Cu, 0.02% Pb, and 0.,02% Zn (739 g/t AgEq) over 0.6m, plus 0.52 g/t Au, 300 g/tr Ag, 0.18% Cu, 0.7% Pb, and 0.3% Zn (385 g/t AgEq) over 3.2m on the Sooy Vein, including 1.51 g/t Au, 773 g/t Ag, 0.48% Cu, 2.1% Pb, and 0.8% Zn (1,007 g/t AgEq) over 0.9m, plus 0.27 g/t Au, 408 g/t Ag, 0.53% Cu, 0.9% Pb, and 0.8% Zn (527 g/t AgEq) over 19.5m on the Sulphide Zone, including 0.24 g/t Au, 879 g/t Ag, 0.76% Cu, 0.9% Pb, and 1.4% Zn (1,036 g/t AgEq) over 3.7m, including 0.62 g/t Au, 2,796 g/t Ag, 1.75% Cu, 1.8% Pb, and 4.2% Zn (3,193 g/t AgEq) over 0.5m, including 0.51 g/t Au, 564 g/t Ag, 0.9% Cu., 1.7% Pb, and 1.3% Zn (772 g/t AgEq) over 8m, including 1.47 g/t Au, 1,148 g/t Ag, 1.4% Cu, 1.5% Pb, and 0.7% Zn (1,452 g/t AgEq) over 0.7m.
  • GoGold Resources Inc., presented additional results from its ongoing drilling program at Eagle and Main Deposits within its Los Ricos South project in Jalisco. Drilling highlights include hole LRGAG-22-218, the best hole drilled to date in the Los Ricos District, with 7.8 g/t Au and 2,153 g/t Ag (36.51 g/t AuEq or 2,738 g/t AgEq) over 55m, including 16.07 g/t Au and 4,664 g/t Ag (78.26 g/t AuEq or 5,869 g/t AgEq) over 25m, including 26,74 g/t Au and 7,756 g/t Ag (130.15 g/t AuEq or 9,761 g/t AgEq) over 15m, including 55.87 g/t Au and  16,525 g/t Ag (276.19 g/t Au or 20,714 g/t AgEq) over 7m, including 121.97 g/t Au and 36,953 g/t Ag (614.67 g/t AuEq or 46,100 g/t AgEq) over 3m, including 145.25 g/t Au and 52,764 g/t Ag (848 g/t AuEq or 63,658 g/t AgEq) over 2m; hole LRGAG-22-221 with 0.85 g/t Au and 138 g/t Ag (2.69 g/t AuEq or 202 g/t AgEq) over 29.4m, including 4.98 g/t Au and 749 g/t Ag (14.97 g/t AuEq or 1,122 g/t AgEq) over 4.4m, including 12.70 g/t Au and 2,370 g/t Ag (44.3 g/t Au Eq or 3,322 g/t AgEq) over 0.9m; and hole LRGAG-22-222 with 0.94 g/t Au and 105 g/t Ag (2.34 g/t AuEq or 176 g/t AgEq) over 8.7m, including 7.6 g/t Au and 592 g/t Ag (15.49 g/t AuEq or 1,162 g/t AgEq) over 0.6m. “Drilling at the Eagle Deposit has returned the highest grade intercepts to date in the district.  These wide high grade intercepts are consistent with geophysical targets on the new Eagle concession”.
  • Bendito Resources Inc., announced the preparation of a NI 43-101 Technical Report for its Oposura project in Sonora. Highlights of this technical report include the potential to support Mineral Resource Estimate (MRE) at Oposura, once appropriate data verification and modelling has been completed; Mineralization at Oposura consists of base and precious metal, massive sulphide manto-style of Zn, Pb-Ag; Additional drilling is needed to extend MRE and connect it to other already known zones; presence of undrilled targets with upside potential demonstrated by geophysics and surface mapping and sampling, including the Mina Blanca Target which consists of polymetallic veins; and potential for discovery of the porphyry source, the same that has been partially intercepted in some holes underneath the MRE.
  • Gatos Silver Inc. updated on extension and resource definition drilling results on its Cerro Los Gatos property in Chihuahua. Highlighted true-width intercepts from the South-East Deeps zone comprise 5.7 m @ 0.13 gpt Au, 47 gpt Ag, 0.42% Cu, 1.8% Zn, 5.3% Zn; 11.3 m @ 0.43 gpt Au, 118 gpt Ag, 0.12% Cu, 1.9% Pb, 2.5% Zn; 2.0 m @ 771 gpt Ag, 0.16% Cu, 0.1% Pb, 0.7% Zn, while those from the definition drilling comprise 3.2 m @ 0.26 gpt Au, 52 gpt Ag, 0.58% Cu, 2.8% Pb, 9.5% Zn; 4.5 m @ 0.52 gpt Au, 88 gpt Ag, 4.3% Pb, 10.0% Zn; 5.3 m @ 0.15 gpt Au, 99 gpt Ag, 0.40% Cu, 3.4% Pb, 5.9% Zn; 9.60 m @ 0.14 gpt Au, 90 gpt Ag, 0.29% Cu, 2.6% Pb, 1.7% Zn. Drilling on the South-East Deeps has defined a zone of more than 950 m along strike, and extended the zone 85 m downdip, remaining open laterally and at depth. “Resource conversion and extension drilling at CLG in the North-West, Central and South-East zones has returned strong results with particularly high base metal values”. Over 45 targets have been identified on the 103,000 hectares land package.
  • Discovery Silver Corp. reported a preliminary feasibility study (PFS) on its Cordero project in Chihuahua. The base case scenario involves an after tax NPV5% of US$1.2 Billion and an IRR of 28%, an 18-year mine life (to mine only 42% of the mineral reserves) with an average of 33 Moz AgEq production per year, with an average AISC of $12.80 per Oz AgEq in the first 12 years as well as an initial development capex of $455 M with a NPV-to-capex ratio of 2.5x. Measured and indicated mineral resources comprise 716 M tonnes averaging 20 gpt Ag, 0.06 gpt Au, 0.29% Pb, 0.38% Zn (or 49 gpt AgEq), containing 467 M Oz Ag, 1.26 M Oz Au, 4,544 M Lb Pb, 8,484 M Lb Zn. Inferred resources comprise 145 M tonnes @ 14 gpt Ag, 0.02 gpt Au, 0.23% Pb, 0.38% Zn (or 35 gpt AgEq), containing 67 M Oz Ag, 122 K Oz Au, 726 M Lb Pb, 1,215 M Lb Zn.
  • Vizsla Silver Corp. updated the mineral resource estimate at it Panuco project in Sinaloa. The report reveals 71% and 150% increments in indicated and inferred mineral resources, and an increase on the grade of 14% and 42% respectively. Indicated minerals resources stand at 7.5 M tonnes @ 243 gpt Ag, 2.12 gpt Au, 0.23% Pb, 0.71% Zn (or 437 gpt AgEq) containing 58.3 M Oz Ag, 508 K Oz Au, 17 K tonnes Pb, 53.3 K tonnes Zn. Inferred mineral resources host 7.2 M tonnes @ 304 gpt Ag, 2.14 gpt Au, 0.19% Pb, 0.54% Zn, hosting 70.7 M Oz Ag, 496 K Oz Au, 13.6 K tonnes Pb, 39.3 K tonnes Zn. The estimate encompasses 8 km of the 86 km of cumulative vein length in the district, including results from 202,709 m of drilling in 644 holes.
  • Endeavour Silver Corp. filed technical reports on the Guanaceví and the Bolañitos projects, disclosing updated mineral resources estimates. At Guanaceví, in Durango, mineral reserves comprise 1.26 M tonnes @ 476 gpt Ag, 1.14 gpt Au, containing 19.3 M Oz Ag, 46 K Oz Au (or 23 M Oz AgEq); measured and indicated mineral resources (exclusive of mineral reserves) are 714.4 K tonnes @ 467 gpt Ag, 1.2 gpt Au, containing 10.7 M Oz Ag, 27 K Oz Au (or 12.8 M Oz AgEq); inferred resources comprise 838.7 K tonnes @ 416 gpt Ag, 0.9 gpt Au, containing 11.2 M Oz Ag, 25 K Oz Au (or 13.1 M Oz AgEq). At Bolañitos, in Guanajuato, mineral reserves comprise 534 K tonnes @ 101 gpt Ag, 2.8 gpt Au, containing 1.2 M Oz Ag, 42.6 K Oz Au; (or 4.6 M Oz AgEq); measured and indicated mineral resources (exclusive of mineral reserves) are 453.5 K tonnes @ 110 gpt Ag, 2.3 gpt Au, containing 1.6 M Oz Ag, 34 K Oz Au (or 4.1 M Oz AgEq); inferred resources comprise 1.66 M tonnes @ 141 gpt Ag, 2.5 gpt Au, containing 7.5 M Oz Ag, 132.2 K Oz Au (or 17.6 M Oz AgEq).  

ON DEALS AND CORPORATE ISSUES

  • Discovery Silver Corp., announced the appointment of its new CEO, effective immediately, and the promotion of Román Solis to VP Mexico (Cordero property, Chihuahua).
  • Altaley Mining Corporation announced the appointment of its new CFO, effective on February 1st, 2023 (Tahuehueto project, Durango).
  • Tarachi Gold Corp. signed a binding letter agreement with Compañía Minera de Atocha S.A. de C.V. for the sale of the Magistral project in Durango. At closing of the transaction Atocha will make a cash payment of US$4.05 M; further US$500 K when 50% of the tailings have been mined/sold or processed, or after the second calendar year of operation at the project; US$500 K when 100% of the tailings have been mined/sold or processed, or after the second calendar year of operation at the project, and the amount of value added tax (IVA) owed to the company by the government, estimated at US$650 K. “Tarachi will seek to settle all outstanding obligations owing to Manto Resources S.A. de C.V. (“Manto”) in relation the Company’s original acquisition of the Magistral Project from Manto in 2021 ….. Tarachi will pay to Manto 15% of all payments received from Atocha in the Transaction as those payments are received”. Tarachi expects to receive from the transaction, net of payments made to Manto, a total of US$4.84 M.
  • Vizsla Silver Corp. appointed Charles Funk as Lead Technical Advisor, and Michael Pettingeli was promoted to Senior Vice President, business development and strategy. (Panuco, 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, a fault-plane displaying slickensides on a silicified breccia in a project in Sonora, Mexico.  Photo by Abraham López.

The Mining and Exploration News in Mexico: Highlights on the Third Week of January 2023

/ Gambusino Prospector / Leave a comment

By Jorge Cirett

During the 3rd week of the year (January 16th to January 22nd, 2023), 20 companies working in Mexico released news on their properties. Two companies posted on exploration of non-advanced properties, six companies posted on Q4 2022 production figures, one released its 2023 production guidance and one announced the re-start of operations at a processing plant in Guanajuato. One company extended the maturity date of convertible debentures. Five companies informed on work at its advanced properties, including three that released drilling results and two that updated on mineral resources. One company restricted the NSR agreement on an advanced property, one informed on the acquisition of a past-producing mine and one other informed on the leasing of its processing plant for part of the profits. ON MEXICO ISSUES, no relevant news. ON EXPLORATION, In Sonora, Reyna Gold released sample results from its La Gloria project. In Jalisco, Almadex Minerals updated on exploration plans at San Pedro. ON MINING, Orla Mining, Avino Silver, Fortuna Silver, Gold Resource, Pan American Silver and First Majestic Silver presented production reports for Q4 2022. Torex Gold released its 2023 production guidance and Guanajuato Silver is to start processing at the Cata mill in Guanajuato. Capitan Mining released drill results from the Jesús María system at its Cruz de Piedra project in Durango.  ON FINANCING, Excellon Resources is to convert C$4.5 M of debentures into equity and extend the maturity of remaining principal. ON RESOURCES AND DEVELOPMENT, GR Silver released drilling results from the SE zone of the San Marcial project in Sinaloa. Regency Silver updated the resource estimate at Dios Padre in Sonora. GoGold Resources posted drilling results from El Favor deposit at its Los Ricos North project in Jalisco. Excellon Resources filed a PEA on La Negra deposit in Hidalgo. ON DEALS AND CORPORATE ISSUES, Defiance Silver restructured an option agreement to acquire the NSR at the Tepal project in Michoacan. Excellon Resources announced last week the acquisition agreement on the past-producing La Negra mine in Hidalgo. Xali Gold signed a lease for part of the profits obtained in the processing of minerals by a private company at its San Dieguito de Arriba mill in Nayarit. ON SOCIAL RESPONSIBILITY, First Majestic Silver received the “Silver Helmet Award” for underground mining with more than 500 workers for its health and safety performance.

ON MEXICO ISSUES

  • No Relevant News.

ON EXPLORATION

  • Reyna Gold Corp. released sample results from district-scale exploration at its 24,215 hectare La Goloria property in Sonora. At Las Carmelitas 43 samples average 2.25% Cu, 89 gpt Ag, 0.21 gpt Au and 0.48% Sb defining a supergene enrichment zone on conglomerate, agglomerate and sandstone with a 2.5 Km by 1.7 km footprint continuing undercover in several directions. At the Western target new parallel structures have been discovered on a 1,500 by 450 m zone with eight samples returning 2.89 to 11.35 gpt Au, up to 27 gpt Ag and 22 to 135 gpt Tellurium. At La Republicana the northwest-southeast trend has now been extended with discontinuous veins and veinlets for 2.8 km, and a width of 625 m with grades of up to 103.5 gpt Au, 283 gpt Ag, 2.4% Cu, 5.33% Pb, 0.12% Zn. “At least 3 hydrothermal events have occurred in the zone: 1) veins and veinlets of white quartz (occasionally greyish) with the presence of galena, chalcopyrite, and covellite, 2) veins and veinlets of quartz-tourmaline (cutting first event structures) coarse pyrite is observed, traces of chalcopyrite and secondary minerals such as hematite, jarosite, malachite and chrysocolla, 3) filling of calcite and iron carbonates within second event structures”. Drilling is programmed for March 2023.
  • Almadex Minerals Ltd. updated on exploration plans for its San Pedro project in Jalisco. The breccias intercepted in 2022 drilling appear to have a sub horizontal distribution. “Further surface mapping is planned to confirm and refine this interpretation in order to optimise the next drilling program. The elevated base metals and copper seen in the breccia, along with acid sulphate altered fragments suggests that the breccia and related mineralisation may be a late feature in the lithocap environment”. It is interpreted that the acid sulphate lithocap present has potential for gold mineralization, and deep copper potential beneath.

ON MINING

  • Orla Mining Ltd. provided an operational update for the fourth quarter 2022. The Camino Rojo Oxide mine produced 32,017 Oz Au during the period, and 109,596 Oz Au throughout the full year. All-in sustaining costs (AISC) has been maintained at $600 to $700 per Oz Au for the year. Production for 2023 is expected to be between 100,000 to 110,000 Oz Au. “Income taxes accrued during 2022, including Mexican Special Mining Duty, totalling approximately $35 million, will be paid in a lump sum in March 2023. Thereafter, Orla expects to pay income tax instalments monthly, beginning in May 2023”. Orla ended the year with a cash position of $96.6 M.
  • Avino Silver & Gold Mines Ltd. reported fourth quarter 2022 production results at the Avino mine in Durango. During the period 150.3 K tonnes were milled at an average grade of 70 gpt Ag, 0.62 gpt Au, 0.53% Cu, recovering 92% Ag, 81% Au, 88% Cu to produce 309.8 K Oz Ag, 2,426 Oz Au, 1.54 M Lb Cu (770 .1 K Oz AgEq). For the year 541.8 K tonnes were milled @ 62 gpt Ag, 0.42 gpt Au, 0.61% Cu, recovering 92% Ag, 78% Au, 89% Cu, to produce 985.2 K Oz Ag, 5,778 Oz Au, 6.50 M Lb Cu (2.65 M Oz AgEq). The dry-stack tailing facility was commissioned and is now fully operational.
  • Guanajuato Silver Company Ltd. announced that the Cata mill has commenced precious metals processing at the Valenciana Mines Complex (VMC) in Guanajuato. The company is to start processing material at a rate of 8 K tonnes per month and to increase it later in the year to 20 K tonnes per month. The mill has a nameplate capacity of 36 K tonnes per month. “The Company plans to operate the Cata mill with production from both VMC and the San Ignacio mine …… intends to backfill tailings underground using a hydraulic fill system that will make use of select voids and open stopes that have been created at VMC over the past 450 years of underground mining”.
  • Torex Gold Resources Inc. provided operational guidance for 2023 and 5-year production outlook for the Morelos Complex in Guerrero, which comprises the El Limón Guajes (ELG) Complex and the Media Luna project. For 2023 at ELG the expected gold production is between 440 K and 470 K Oz Au at total cash costs $740 to $780 per OZ Au and all-in sustaining costs of $1,080 to $1,130. “The strip ratio for 2023 is expected to average 10.7:1 compared to 8.9:1 in 2022 given additional laybacks within the El Limón and El Limón Sur open pits. Based on the current mine plan, a higher portion of waste is expected to be mined in the second and third quarters compared with the first and fourth quarters”. Approximately $39 M are budgeted for exploration and drilling in 2023, including $20 M for Media Luna, $6 M for ELG underground, $8 M for exploration in near mine on early exploration targets and $5 M in definition and grade control drilling. For the next five years production is expected to be in the 400 K to 500 K Oz Au per year.
  • Fortuna Silver Mines Inc. reported production results for the fourth quarter 2022, including figures from its Mexican operations. During the fourth quarter 259.5 K tonnes were milled at a rate of 2,883 tonnes per day (tpd), averaging 194 gpt Ag, 1.13 gpt Au, recovering 91.1% Ag, 89.8% Au to produce 1.47 M Oz Ag, 8,499 Oz Au. For the year, 1.03 M tonnes were milled at a rate of 2,925 tpd, averaging 191 got Ag, 1.14 gpt Au, to produce 5.76 M Oz Ag, 34,124 K Oz Au. For 2023 the company plans to process 1.03 M tonnes @ 186 gpt Ag, 1.19 gpt Au, reflecting the declining grade profile of mineral reserves.
  • Gold Resource Corp. released fourth quarter 2022 production for the Arista mine in Oaxaca. During the period 97.8 K tonnes were milled at a rate of 1,353 tonnes per day, averaging 2.68 gpt Au, 91 gpt Ag, 0.37% Cu, 2.29% Pb, 4.79% Zn to produce 6,933 Oz Au, 265.8 K Oz Ag, 284 tonnes Cu, 1,808 tonnes Pb, 3,920 tonnes Zn.
  • Pan American Silver Corp. announced preliminary production results for the Q4 2022, including figures from its Mexican operations. At La Colorada, in Zacatecas, 1.34 M Oz Ag, 700 Oz Au were produced during the period, for a yearly total of 5.93 M Oz Ag, 3,300 Oz Au. At Dolores, in Chihuahua, 0.59 M Oz Ag, 34,600 Oz Au were produced during the quarter, for a yearly production of 2.24 M Oz Ag, 136,900 Oz Au.
  • First Majestic Silver Corp. released total production results for the fourth quarter of 2022. The company’s consolidated production from its three operating mines in Mexico (San Dimas in Durango, Santa Elena in Sonora, La Encantada in Coahuila) was 2.39 M Oz Ag, 46,194 Oz Au (or 6.17 M Oz AgEq). The liquid natural gas powerplant at Santa Elena was expanded from 12 MW to 24 MW “to supply low‐cost, clean power to the Ermitaño mine and the recently completed dual‐circuit plant”. In exploration, four drilling rigs are operating at Dan Dimas, in Durango, three at Santa Elena in Sonora and one at La Encantada, in Coahuila.

ON FINANCING

  • Excellon Resources Inc. entered into a binding term sheet with holders representing approximately 66.67% of the principal “amount of outstanding convertible debentures to convert 25% of the debentures (C$4.5 M) into equity and reprice and extend maturity of remaining principal outstanding upon closing the acquisition of La Negra property in Queretaro, providing greater flexibility to the Company. Furthermore, reprice the conversion price of the remaining principal to C$0.535 per share, 6.5% interest rate or 10.0% payable in shares at the company’s election” (La Negra, Hidalgo).

ON RESOURCES AND DEVELOPMENT

  • GR Silver Mining Ltd. released surface drilling results from six holes in the Southeast Area of the San Marcial project in Sinaloa. Highlighted core-length intervals comprise 5.6 m @ 1,223 gpt Ag, 1.4% Pb, 1.2% Zn (including 0.3 m @ 25,150 gpt Ag, 30% Pb, 18.6% Zn); 82.7 m @ 121 gpt Ag (including 0.4 m @ 3,386 gpt Ag and 1.1 m @ 1,391 gpt Ag); 112.6 m @ 61 gpt Ag (including 0.9 m @ 1,055 gpt Ag); 0.6 m @ 14.3 gpt Au. “The six holes represent extensions along strike or down dip, creating the potential to expand silver mineralization boundaries”.
  • Capitan Mining Inc. released drill assays for five holes on the Jesus Maria zone at the Cruz de Piedra project in Durango. Highlighted core length intervals comprise 16.8 m @ 0.35 gpt Au, 187 gpt Ag, 0.1% Pb, 0.1% Zn (including 1.5 m @ 1.36 gpt Au, 1,381 gpt Ag, 0.8% Pb, 0.5% Zn); 4.6 m @ 0.63 gpt Au, 183 gpt Ag (including 1.5 m @ 1.45 gpt Au, 504 gpt Ag); 15.2 m @ 0.44 gpt Au, 21 gpt Ag, 0.5% Pb, 0.8% Zn (including 1.5 m @ 1.82 gpt Au, 81 gpt Ag, 3.2% Pb, 4.2% Zn). The Jesus Maria zone has been traced by trenching and drilling for 750 m of strike length to a depth of up to 150 m “On Dec 6 th, 2022, Capitan announced that it had entered into a transaction with a third party to consolidate the 2.5km high grade Jesus Maria trend”.
  • Regency Silver Corp. announced an updated resource estimate for its Dios Padre project in Sonora. The updated resource estimate incorporates 1,056 m of drilling in 8 holes drilled in 2022 and 10,425 m of historic drilling in 66 holes, to define inferred resources of 1.384 M tonnes @ 228 gpt Ag, 0.32 gpt Au (255.6 gpt AgEq) containing 10.14 M Oz Ag, 14,000 Oz Au. “The resource estimate contains information from the historic Dios Padre silver mine only and does not include any information from the recent discovery hole REG 22-01 which contained an intercept of 35.8 metres of 6.84 g/t gold, 0.88% copper and 21.82 g/t silver”.
  • GoGold Resources Inc. released the results of eight holes from El Favor East deposit within Los Ricos North project in Jalisco. Highlighted core length intervals comprise 84.5 m @ 0.24 gpt Au, 79 gpt Ag; 44.8 m @ 0.30 gpt Au, 111 gpt Ag (including 17.3 m @ 0.71 gpt Au, 225 gpt Ag); 7.8 m @ 0.45 gpt Au, 190 gpt Ag; 19.9 m @ 0.59 gpt Au, 392 gpt Ag (including 5.0 m @ 1.97 gpt Au, 1,300 gpt Ag, which includes 1.2 m @ 6.48 gpt Au, 3,722 gpt Ag); 18.3 m @ 0.21 gpt Au, 97.4 gpt Ag; 35.2 m @ 0.18 gpt Au, 130 gpt Ag. “El Favor is located approximately 800 meters along strike to the east of the El Orito deposit. The combined systems cover approximately 2.9km in mineralized strike length over a 3.7km distance”.
  • Excellon Resources Inc. filed a preliminary economical assessment on La Negra project in Queretaro. The report summarizes the mineral resource estimate with 2.46 M tonnes @ 64 gpt Ag, 1.95% Zn, 0.50% Cu, 0.27% Pb, containing 5.1 M Oz Ag, 105.8 M Lb Zn, 27.1 M Lb Cu, 14.6 M Lb Pb in indicated resources and 6.42 M tonnes @ 80 gpt Ag, 1.80% Zn, 0.40% Cu, 0.65% Pb, containing 16.5 M Oz Ag, 254.8 M Lb Zn, 56.6 M Lb Cu, 92.0 M Lb Pb as inferred resources. The PEA envisages 7.4 years of mine life processing 6.22 M tonnes averaging 63 gpt Ag, 1.5% Zn, 0.4% Cu, 0.4% Pb at a daily rate of 2,500 tonnes.

ON DEALS AND CORPORATE ISSUES

  • Defiance Silver Corp. restructured the option agreement to acquire the 2.5% NSR at the Tepal project in Michoacan with Minera Tepal S.A. de C.V. “The company is making a payment of US $100,000 to defer all payments until June 30, 2024, at which time the remaining payment schedule will resume”.
  • Excellon Resources Inc. announced on January 9, 2023 a definitive acquisition agreement with Orion Resource Partners on the acquisition of the permitted, past-producing mine of La Negra, in Queretaro. The deal involves the payment on US$50 M paid through an upfront payment in shares of Excellon totaling US$20 M upon closing of the acquisition and a further US$30 M of deferred, “contingent consideration payable in common shares of the Company or in cash at the Company’s option, following the restart of commercial production”. La Negra property counts with 2.46 M tonnes @ 64 gpt Ag, 1.95% Zn, 0.50% Cu, 0.27% Pb, containing 5.1 M Oz Ag, 105.8 M Lb Zn, 27.1 M Lb Cu, 14.6 M Lb Pb in indicated resources and 6.42 M tonnes @ 80 gpt Ag, 1.80% Zn, 0.40% Cu, 0.65% Pb, containing 16.5 M Oz Ag, 254.8 M Lb Zn, 56.6 M Lb Cu, 92.0 M Lb Pb. The current PEA envisages 7.4 years of mine life processing 6.22 M tonnes averaging 63 gpt Ag, 1.5% Zn, 0.4% Cu, 0.4% at a daily rate of 2,500 tonnes.   
  • Xali Gold Corp. signed a binding letter of intent with Minera Cinco Reales S.A. de C.V. on the San Dieguito de Arriba plant in Nayarit. Xali will have the right to receive 15% of the net profits from any mineral that is processed at the plant, or minimum payments of US$10 K in the fourth month from the signing, US$20 K on the fifth month, US$30 K on the sixth month, US$40 k on the seventh to tenth months, US$50 K from month eleven on. Before the fourth month, Xali should receive US$6.5 K on January 30th, US$6.5 K on February 27th, US$6.5 K on March 22nd. “Upon the execution of this Agreement, MCR will act as the only operator of the plant and will have the exclusive option to obtain permits and refurbish the plant and equipment to operational status and to manage and operate the SDA plant for their benefit for an initial period of 14 months …… Minera Cinco Reales operates several mines and processing plants (150 to 300 tonnes per day) in Northern and Central Mexico producing gold, silver, copper, lead and zinc”.

ON SOCIAL RESPONSIBILITY

  • First Majestic Silver was awarded the prestigious “Silver Helmet Award” in the category of “Underground Mining of More Than 500 Workers” by the Mining Chamber of Mexico for its outstanding performance in occupational safety and health on its Santa Elena operations in Sonora.

On the image below: Tectonic breccia in granitic rock sealed by fine grained darker intrusive on a copper project in the Sonoran Desert. Picture by Abraham López.

The Mining and Exploration News in Mexico: Highlights on the Second Week of January, 2023.

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fault-plane displaying slickensides

By Miguel A Heredia

During the 2nd week of the year (January 09th to January 15th, 2023), at least 30 press releases were announced by companies working in Mexico, and 4 news published by the media with nine communicating production and financial results, seven reporting resources and developments of their properties, five disclosing deals and corporate issues, five informing on exploration results, four announcing financing issues, and four commenting on Mexican issues. ON MEXICO ISSUES, The Ministry of the Environment and Natural Resources (SEMARNAT) withdrew the permit to Fortuna Silver Mines, which operates the San José mine in Oaxaca through the company Minera Cuzcatlán.  Compañía Minera Cuzcatlán (Fortuna Silver) responded to SEMARNAT that it is operating normally at its San José mine in Oaxaca under complete legality. Mining companies shine at the beginning of the year on the Mexican Stock Exchange. The governments of Mexico and Canada have agreed to strengthen resilience in the supply chain in which both countries participate, reported Mary Ng, Minister of International Trade, Export Promotion, Small Business and Economic Development of Canada. Prime Mining, Tocvan Ventures, Oroco, and Silver Tiger reported the best drilling intercepts in Mexico on the second week of January, 2023.  ON EXPLORATION, In Sonora, Aztec Minerals presented a summary of the results from its recently completed 2022 drilling program at its Cervantes project,  Colibri completed additional drilling on its Evelyn project, Tocvan drill intersected a broad zone of gold at its El Picacho project, and Riverside provided a corporate outlook for 2023. In Sinaloa, Prismo Metals released results from the remaining holes from its now completed 2022 drill program at its Palos Verdes project.  ON MINING, Aura, Alamos Gold, Americas, Endeavour, Gatos Silver, GoGold, Golden Minerals, and Torex announced Q4 and full-year 2022 production from their Mexican operations, and Altaley reported pre-production results during mill commissioning at its Tahuehueto property in Durango.  ON FINANCING, Canuc closed a non-brokered private placement for gross proceeds of CAD $680K (San Javier project, Sonora). Guanajuato Silver closed the second and final tranche of its non-brokered private placement offering totaling CAD $8.5M (El Cubo, San Ignacio, and Valenciana mines, Guanajuato). Fabled announced that it plans to complete a non-brokered private placement for gross proceeds of up to CAD $1.5M (Santa Maria property, Chihuahua). Altaley entered into a debt settlement agreement with an arms’ length mining contractor to settle CAD $1,176,297 which is owing to the contractor as a result of underground mine development work (Tahuehueto mine, Durango). ON RESOURCES AND DEVELOPMENT, Regency Silver announced recommencement of the 2023 drilling program at its Dios Padre property in Sonora, as well as the commencement of an IP survey. Discovery outlined its 2023 work program and budget for its Cordero property in Chihuahua. Oroco released further assay results from the North Zone drilling program at its Santo Tomas project in Sinaloa. Prime Mining presented results from 48 drill holes collared in the Z-T area at its Los Reyes project, Sinaloa. Silver Tiger released results from its ongoing drilling program being conducted at its El Tigre project, Sonora. Sailfish announced results from its recently drilling program conducted at its Gavilanes property in Durango. Silver Viper reported positive geophysical and geochemical survey results at its Virginia project, Sonora. ON DEALS AND CORPORATE ISSUES, Santacruz announced the appointment of its new CFO (Zimapan property, Hidalgo). Excellon announced that its Board of Directors has approved the voluntary delisting of its common shares from the New York Stock Exchange (La Platosa mine, Durango). Fabled´s shareholders approved a share consolidation of the outstanding securities of the Company on an up to ten for one basis (Santa Maria property, Chihuahua). Vizsla completed strategic investment in the acquisition of Palos Verdes project, Sinaloa from Prismo Metals.   ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUE

  • The Ministry of the Environment and Natural Resources (SEMARNAT) withdrew the permit to Fortuna Silver Mines, which operates the San Jose mine in Oaxaca through the company Minera Cuzcatlán since, according to SEMARNAT, it incurred in several irregularities. Such permit had been previously granted by some servants of SEMARNAT. In 2022, SEMARNAT said that it had been a misspelling to have issued a permit for 12 more years for the operation of this company. SEMARNAT was even questioned for providing legal advice to the company in order to obtain the environmental impact authorization and the regularization of construction of works for which it did not have authorization. With the suspension of the permit, SEMARNAT said that the company can appeal and resort to its influence peddling as it has done since its settlement in Oaxaca. However, if the judges confirm the resolution, it must withdraw and return the land to its owners, in addition to repairing the damage caused by the excessive pollution it has generated in the area.
  • Compañia Minera Cuzcatlán (Fortuna Silver) responded to SEMARNAT that it is operating normally at its San Jose mine in Oaxaca under complete legality. Derived from the notification received by the Ministry of the Environment and Natural Resources (SEMARNAT) at the beginning of 2023, regarding the intention of evaluating the MIA (Environmental Impact Statement) granted legally and correctly in December 2021, it is notified that this new procedure does not affect the daily activities of the Company, thus confirming that the San José Mining Unit, located in San José del Progreso, Oaxaca, is operating normally. Fortuna Silver Mines, communicated on January 5 of this year, that its San José Mining Unit, which operates through its subsidiary Compañía Minera Cuzcatlán, fully complies with all current environmental laws, for which it has expressed its disagreement and is taking legal measures to protect its more than 1,200 employees, a value chain made up of more than 600 companies, 150 of them from the area, as well as an annual income of more than MXP $600M that benefits more than 30,000 people in the Central Valleys of Oaxaca.  “Likewise, the Company highlights that, in 11 years of operation, it has been inspected 15 times by the Federal Attorney for Environmental Protection (PROFEPA), in turn it has registered two inspections by the National Water Commission (CONAGUA), who in none of their proceedings have ruled on facts and/or indications of contamination at the site or derived from the operation of the San José Mine. Finally, Compañía Minera Cuzcatlán reiterates its commitment to continue working together with neighboring communities to improve and expand the social benefits of its operation, through sustainable development initiatives”.
  • Mining companies shine at the beginning of the year on the Mexican Stock Exchange. The increase in the price of metals such as gold, silver and copper, supported the rebound in the price of the shares of companies in the Mexican market these days. Industrias Peñoles and Grupo México are framed as the first and third issuers in the S&P/BMV IPC index, which brings together the 36 largest firms in the Mexican stock market, which have accumulated the most performance in these first days of 2023. In the first case its shares maintain gains of 21.55%, at a price of 291.30 pesos per unit, in the first six business days of January. For the second, the return has been 18.35%, at 80.96 pesos.
  • The governments of Mexico and Canada have agreed to strengthen resilience in the supply chain in which both countries participate, reported Mary Ng, Minister of International Trade, Export Promotion, Small Business and Economic Development of Canada. Mexico, Canada, and the United States have agreed to joint actions to strengthen their supply chains both regionally and globally. In 2021, the Joe Biden Administration launched its Bailout for America, under the Bailout for America Act of 2021, signed into law in March.
  • Prime Mining Corp., Tocvan Ventures Corp., Oroco Resource Corp., and Silver Tiger Metals Inc., reported the best drilling intercepts in Mexico on the second week of January, 2023. Details are shown in the table below:

ON EXPLORATION

  • Aztec Minerals Corp., presented a summary of the results from its recently completed RC and oriented core holes 2022 drilling program at its Cervantes project in Sonora. It consisted of 26 RC holes totalling 5,248.6m, and 11 oriented core holes totalling 2,588m. Combined 2022 drilling program totaled 37 holes and 7,836.6m on California, California Norte, Purisima East and Jasper targets. All the holes collared in 2022 at California and California Norte targets, except one, encountered near surface, oxidized gold mineralization with minor copper values. Now, California target has been expanded to approximately 900m long E-W by 730m wide N-S, and with continuous mineralization of up to 170m depth. “The porphyry gold-copper mineralization is still open in all directions with anomalous mineralization and alteration up to 265m depth vertically.  The California and California Norte targets appear to be merging from drilling and surface exposures”. At Jasper target, step out 600m west of the California Zone, the drilling program intercepted broad alteration and strongly oxidized, argillically altered, and brecciated siltstone-quartzite sediments. “Strong copper oxide mineralization is found on outcrops and in the drilling.  Sulfides have not yet been found in drilling to 209 m depth, suggesting the there is a possibility to encounter a secondary sulfide enrichment blanket”. “At the Purisima Este target drilling found anomalous Au and multi-element mineralization related to the edges of its diatreme-breccia pipe related to quartz feldspar intrusive and follow-up work is planned”. Drilling highlights of the 2022 program include hole CAL22-001 with 1.04 g/t Au over 94m, including 3.96 g/t Au over 55m, and 0.36% over 55m; hole CAL 22-004 with 1.0 g/t Au over 65m, including 4.25 g/t Au over 24.4m, and 0.065% Cu over 160m; hole CAL 22-005 with 1.49 g/t Au, including 3.42 g/t Au over 51.7m, and 0.091% Cu over 119m; hole CAL 22-006 with 0.75 g/t Au, including 3.08 g/t Au over 9.14m, and 0.1% Cu over 138m; hole 0.87 g/t Au over 152m, including 2.05 g/t Au over 33.5m, and 0.095% Cu over 123m; hole CAL 22-027 with 0.68 g/t Au over 120m, including 1.46 g/t Au over 27m; and hole CAL 22-031 with 0.56 g/t Au over 135m, including 2.29 g/t Au over 12m.  
  • Colibri Resource Corporation completed additional drilling on its Evelyn project in Sonora, which included 3 diamond holes totaling 1,063m, 5 reverse circulation holes totaling 1,205m, and 130 short RC holes totaling 1,548 m to penetrate alluvium and sample the top of bedrock.
  • Tocvan Ventures Corp., announced results from 3 out of 10 holes drilled at its Picacho project in Sonora. The company reported that hole SRA-22-003 intersected a broad zone of gold, returning 0.3 g/t Au and 0.5 g/t Ag over 48.8m, including 0.51 g/t Au and 0.8 g/t Ag over 27.5m, including 0.71 g/t Au and 1 g/t Ag over 19.8m, including 1.14 g/t Au and 1 g/t Ag over 12.2m, and including 4.73 g/t Au and 2 g/t Ag over 1.5m. Results for the remaining seven drillholes are pending.
  • Riverside Resources Inc., provided a corporate outlook for 2023 of the company´s growth plans. Highlights include look for a new strategic alliance with a major base metal producer; to drill-test with partner funds at least one project in H1, 2023 (BHP); look for new partnership to advance its La Union property in Sonora after high-grade results in 2022; and farm-out its Cecilia project in Sonora, which has a proposed drilling program to be executed at the property.
  • Prismo Metals Inc., released results from the remaining holes from its now completed 2022 drill program at its Palos Verdes project, Sinaloa, which consisted of eight holes totalling 2,100m. The best drill intercept was encountered in hole PV-22-17 with 0.43 g/t Au, 115 g/t Ag, 0.28% Cu, 0.47% Pb, and 0.81% Zn (200 g/t AgEq) over a true width (TW) of 3m, including 1.18 g/t Au, 297 g/t Ag, 0.56% Pb, 1.18% Pb, and 1.97% Zn (516 g/t AgEq) over a TW of 1.05m.

ON MINING

  • Aura Minerals Inc., reported that it produced 28,591 gold equivalent ounces during Q4, 2022 from its Aranzazu mine, Zacatecas.
  • Alamos Gold Inc., reported Q4 and annual 2022 production results from its Mulatos mine in Sonora, and provided updated three-year production and operating guidance. In Q4, 2022 the company produced 49,100 Oz Au at an average grade of 0.78 g/t Au. Alamos expects to produce over 175K-185K Oz Au at an average grade of  0.73 g/t Au in 2023 with a total cash cost in te range of USD $900-USD $950 per Oz Au; an all included sustaining cost of USD $950-1,000 per Oz Au; a sustaining capital of USD $10M; grow capital of USD $5-10M (a total sustaining and grow capital of USD $19-24M); capitalized exploration of USD $4M; an a total capital expenditures and capitalized exploration of USD $19-24M. Production for 2024 and 2025 is expected to be in the range of 140-150K Oz Au and 110-120K Oz Au respectively.
  • Altaley Mining Corporation reported pre-production results during mill commissioning at its Tahuehueto property in Durango. Tahuehueto is currently operating one ball mill in a commissioning phase, as part of the initial 500 tonnes per day project, producing precious metals-rich, commercial grade lead and zinc concentrates. The company produced in Q4, 2022 862 tonnes of Pb concentrate with grades of 26.31% Pb, 76.72 g/t Au, and 643 g/t Ag with metallurgical recoveries of 76.68%, 76.72%, and 68.115 respectively; and 878 tonnes of Zn concentrate with grades of 47.51% Zn, 7.5 g/t Au, and 145 g/t Ag with metallurgical recoveries of 54.31%, 13.23%, and 15.12% respectively.
  • Americas Gold and Silver Corporation reported Q4 and annual year 2022 production from its Cosala mine operation in Sinaloa. It produced 196K Oz Ag, 3.8M Lb Pb, and 10.4M Lb Zn during Q4, 2022, and 636K Oz Ag, 15.3M Lb Pb, and 39.3M Lb Zn in the full-year 2022.
  • Endeavour Silver Corp., released Q4 and full-year 2022 production results from their Mexican mine operations. Consolidated figures for Q4 and annual 2022, compared to the year 2021 are shown in the table below:

Figures by mine for the period Q4, and full year 2022 are shown in the tables below:

  • Gatos Silver Inc., announced guidance and Q4 and full year 2022 production results from its 70% owned Cerro Los Gatos, Chihuahua. On te period Q4, 2022 (100% Basis), the company milled 261,929 tonnes of 387 g/t Ag, 3.7% Zn, 1.9% Pb, and 0.3 g/t Au with metallurgical recoveries of 89.6%, 62.7%, 86.3%, and 53.9% respectively, to produce 2.9M Oz Ag, 13.5M Lb Zn, 9.7M Lb Pb, and 1.4K Oz Au. For the full-year 2022, the company reported production of 10.3M Oz Ag, 60.7M Lb Zn, 45.9M Lb Pb, and 5.3K Oz Au. 2022 guidance announced by Gatos Silver was 9.35-9.65M Oz Ag, 58-61M Lb Zn, 43-45M Lb Pb, and 5.0-5.3K Oz Au. Zinc, lead and gold production increased during 2022, with zinc and gold near the high end of guidance, and lead near the guidance midpoint. Compared with 2021, zinc production increased by 22%, lead production by 10%, and gold production by 2%. As of December 2022, the company reported a cash balance of $17M and outstanding balance of the company´s credit facility of $9M.
  • GoGold Resources Inc., reported Q4, 2022 production results from its Parral Tailings project, Chihuahua. The company produced 159,838 Oz Ag, 2,399 Oz Au, and 497.3K Lb Cu (441,217 Oz AgEq).
  • Golden Minerals Company announced Q4, and full-year 2022 production and financial results from its Rodeo project, Durango. The company in Q4, 2022 mined 161,244 tonnes and processed 52,736 tonnes of 2 g/t Au and 10 g/t Ag with metallurgical recoveries of 73.3% and 82% respectively, to produce 2,398 payable Oz Au (in doré) and 13,560 payable Oz Ag (in doré) or 2,568 payable Oz AuEq (in doré). Golden sold 2,518 Oz Au and 14,217 Oz Ag (2,696 Oz AuEq), at realized prices, before refining and selling costs of USD $1,729.40 and USD $21.69 respectively. For the full year 2022, Golden mined 771,485 tonnes and processed   195,599 tonnes of 2.6 g/t Au and 11 g/t Ag with metallurgical recoveries of 74.7% and 81.2% respectively, to produce 11,982 payable Oz Au (in doré) and 52,179 payable Oz Ag (in doré) or 12,616 payable Oz AuEq (in doré). Golden sold 12,451 Oz Au and 53,486 Oz Ag (13,101 Oz AuEq), at realized prices, before refining and selling costs of USD $1,805.34 and USD $21.93 respectively.
  • Torex Gold Resources Inc., reported Q4 and full-year 2022 production results from El Limón-Guajes mine complex, Guerrero. The company produced 116,196 Oz Au in Q4 to total 474,035 Oz Au in the full-year 2022. It surpassed the upper end of the guided range of 430K-470K Oz Au. Torex sold in Q4, 2022 121,913 Oz Au for a total of 473,122 Oz Au in the full-year 2022.

ON FINANCING

  • Canuc Resources Corporation issued 8.5M of common shares at a price of CAD $0.08 per common share to close a non-brokered private placement for gross proceeds of CAD $680K. Most of the gross proceeds will be used for exploration on the San Javier project, Sonora. 
  • Guanajuato Silver Company Ltd., closed the second and final tranche of its non-brokered private placement offering. The company issued 4,080,486 common shares for gross proceeds of CAD $1,734,206.55 in the second tranche for a total offering of CAD $20,032,682 for gross proceeds of CAD $ 8,513,889.85. The net proceeds of the offering will be used to, among other things, ramp up production at the Company’s existing mines in and about Guanajuato, Mexico including El Cubo, San Ignacio and Valenciana, expand and modernize the processing facilities at the Topia mine in Durango, Mexico, increase brownfields’ exploration programs, and fund general and administrative expenses.
  • Fabled Silver Gold Corp., announced that it plans to complete a non-brokered private placement for gross proceeds of up to CAD $1.5M at a price of CAD $0.10 per common share. Net proceeds will be used to make required property payments, to further explore the Santa Maria Property, and for general working capital. 
  • Altaley Mining Corporation entered into a debt settlement agreement with an arms’ length mining contractor to settle CAD $1,176,297 which is owing to the contractor as a result of underground mine development work. The Company and the contractor have agreed that the issuance to the contractor of 735,186 common shares of the company at a deemed price of CAD $1.60 per common share will extinguish and settle the debt.

ON RESOURCES AND DEVELOPMENT

  • Regency Silver Corp., announced recommencement of the 2023 drilling program at its Dios Padre property in Sonora, as well as the commencement of an IP survey. The company plans to drill a minimum of 3,000m as an initial follow up to the successful drilling program completed in August, 2022. It also will commence an IP survey to provide 3D information to a depth of 800m. “The current drill and IP program is designed to determine more specifically what type of broad, mineralizing system is present at Dios Padre”.
  • Discovery Silver Corp., outlined its 2023 work program and budget for its Cordero property in Chihuahua. The goal is to complete the Pre-Feasibility Study (PFS) later this month and will be focused on optimization opportunities including improved mining and processing efficiencies, as well as complete a Feasibility Study (FS) in Q1, 2023.. Alongside this work, Cordero has allocated drill metres to the exploration potential on the large, highly-prospective land package owned by the company.  “Construction permitting for Cordero will be undertaken in-parallel with the FS work, with the submission of the Environmental Impact Statement (MIA) expected to be made to the Mexican Federal Environmental Department (SEMARNAT) in the first half of 2023. Assuming a 12 to 18 month permitting timeline, this would position the Company to make a construction decision in the second half of 2024.  The 2023 work programs are budgeted at $26 million. The Company is well positioned to fund this work with a cash balance of over $45 million and no debt at the end of 2022. 
  • Oroco Resource Corp., released further assay results from the North Zone drilling program at its Santo Tomas project in Sinaloa. Holes N039 to N043 totalled 2,668 m of drilling which demonstrated continuity of good grade mineralization. Highlights include hole NO39 with 0.14% Cu, 0.002% Mo, 0.01 g/t Au and 1 g/t Ag (0.15% CuEq) over 58m, plus 0.46% Cu, 0.005% Mo, 0.016 g/t Au, and 4 g/t Ag (0.49% CuEq) over 21.4m, plus 0.31% Cu, 0.01% Mo, 0.02 g/t Au and 2 g/t Ag (0.36% CuEq) over 265m; hole NO40 with 0.21% Cu, 0.007% Mo, 0.012 g/t Au, and 2 g/t Ag (0.24% CuEq) over 41m, plus 0.29% Cu, 0.009% Mo, 0.013 g/t Au, and 3 g/t Ag (0.33% CuEq) over 152.1m; hole N041 with 0.3% Cu, 0.002% Mo, 0.003 g/t Au, and 1 g/t Ag (0.35% CuEq) over 20.6m, plus 0.47% Cu, 0.006% Mo, 0.038 g/t Au, and 2 g/t Ag (0.52% CuEq) over 96m; and hole N042 with 0.53% Cu, 0.005% Mo, 0.075 g/t Au, and 3 g/t Ag (0.60% CuEq) over 135m.
  • Prime Mining Corp., presented results from 48 drill holes collared in the Z-T area at its Los Reyes project, Sinaloa. Drilling highlights include holes 22TA-51 with 2.5 g/t Au and 278 g/t Ag (6.1 g/t AuEq) over a true width (TW) of 3,1m, plus 10 g/t Au and 131 g/t Ag (11.6g/t AuEq) over a TW of  3.1m, including 28.5 g/t Au and 310 g/t Ag (32.5 g/t AuEq) over a TW of 1.1m; hole 22ZAP-87 with 4.7 g/t Au and 103 g/t Ag (6 g/t AuEq) over a TW of 8.7m, including 39.6 g/t Au and 174 g/t Ag (41.9 g/t AuEq) over a TW of 0.7m, and 8.6 g/t Au and 163 g/t Ag (10.7g/t AuEq) over a TW of 1.0m; hole 22TA-44 with 2.7 g/t Au and 451 g/t Ag (8.6 g/t AuEq) over a TW of 4.8m, including 4.8 g/t Au and 821 g/t Ag (15.4 g/t AuEq) over a TW of 2.3m; hole 22 ZAP-82 with 1.3 g/t Au and 22 g/t Ag (1.6 g/t AuEq) over a TW of 13m, including 13 g/t Au and 48 g/t Ag (13.6 g/t AuEq) over a TW of 0.8m, plus 3.6 g/t Au and 20 g/t Ag (3.8 g/t AuEq) over a TW of 13.8m,including 22.2 g/t Au and 41 g/t Ag (22.8 g/t AuEq) over a TW of 1.9m; hole 22TA-43 with 4.2 g/t Au and 59 g/t Ag (4.9 g/t AuEq) over a TW of 5.4m, including 23.6 g/t Au and 103 g/t Ag (24.9 g/t AuEq) over a TW of 0.8m; and hole 22SMW-12 with 6.9 g/t Au and 33 g/t Ag (7.3 g/t AuEq) over a TW of 14.8m, including 9.1 g/t Au and 31 g/t Ag (9.5 g/t AuEq) over a TW of 8.9m, including 21 g/t Au and 55 g/t Ag (21.7 g/t AuEq) over a TW of 1.5m.
  • Silver Tiger Metals Inc., released results from its ongoing drilling program being conducted at its El Tigre project, Sonora. Drilling highlights include hole ET-22-333with 0.46 g/t Au, 429 g/t Ag, 0.07% Cu, 0.04% Pb, and 0.06% Zn (474 g/t AgEq) over 10.1m on Seitz Kelly Shale Zone, including 0.83 g/t Au, 3,639 g/t Ag, 0.61% Cu, 0.14% Pb, and 0.14% Zn (3,767 g/t AgEq) over 1.2m, including  0.22 g/t Au, 6,063 g/t Ag, 1% Cu, 0.14% Pb, and 0.09% Zn (6,182 g/t AgEq) over 0.7m; hole ET-22-333 with 0.14 g/t Au, 307 g/t Ag, 0.07% Cu, 0.2% Pb, and 0.2% Zn (337 g/t AgEq) over 2.4m on El Tigre Vein, including 0.32 g/t Au, 778 g/t Ag, 0.17% Cu, 0.4% Pb, and 0.6% Zn (849 g/t AgEq) over 0.9m, plus 0.25 g/t Au, 69 g/t Ag, 0.13% Cu, 0.5% Pb, and 1% Zn over 18.6m on the Seitz Kelly Shale Zone, including 0.25 g/t Au, 778 g/t Ag, 1.69% Cu, 7.1% Zn, and 15% Zn (1,633 g/t AgEq) over 1.1m on the Seitz Kelly Vein; and hole ET-22-335 with 0.15 g/t Au, 331 g/t Ag, 0.24% Cu, 0.2% Pb, and 0.5% Zn (386 g/t AgEq) over 4.3m on Seitz Kelly Vein, including 0.15 g/t Au, 2,343 g/t Ag, 1.67% Cu, 1.36% Pb, and 3.32% Zn (2,658 g/t AgEq) over 0.6m.
  • Sailfish Royalty Corp., announced results from its recently exploration work conducted at its Gavilanes property in Durango. Gavilanes comprises multiple high-grade polymetallic silver veins located approximately 30 km away from First Majestic’s San Dimas mine operation. Sailfish has drilled 47 shallow diamond drill holes on three of these veins which host mineralization in veins and stockworks of an intermediate sulphidation epithermal system. Sailfish geologists have collected representative chip channel samples across veins or structures, which returned encourages high-grade values. Highlights include 12.80 g/t Au and 48 g/t Ag over 2.5m and 0.87 g/t Au and 40 g/t Ag over 18m on Descubridora Vein; 30 g/t Au and 190 g/t Ag over 1m and 0.84 g/t Au and 754 g/t Ag over  2m on San Nicolas Vein; 0.02 g/t Au and 1,867 g/t Ag over 1m on San Nicolas-Veta del Pueblo; 10.12 g/t Au and 16 g/t Ag over 2.2m on Forasteros Vein; and 0.51 g/t Au and 1,546 g/t Ag over 0.51m pon La Cruz Vein. Gavilanes currently has an inferred mineral resource of 2.833M tonnes at an average grade of 246 g/t AgEq (22.4M Oz AgEq). This inferred mineral resource is highlighted by having 18.9M Oz Ag at an average grade of 207 g/t Ag.
  • Silver Viper Minerals Corp., reported positive geophysical and geochemical survey results at its Virginia project, Sonora. Detailed mapping and geochemical sampling following a TITAN MT deep penetrating Geophysical survey conducted in Q2, 2022 identified new targets at El Molino, along the Macho trend. “Geological mapping and rock and chip-channel sampling has outlined new targets at Los Cantiles, El Oriental and the eastern and southern sectors of Macho Libre. The new prospecting area, Los Cantiles, garnered surface chip channel sample results up to 5.7 g/t Au and 148 g/t Ag. Dump samples up to 17.8 g/t Au and 1,001 g/t Ag, and chip-channel samples up to 4.2 g/t Au and 310 g/t Ag, have been located at the El Oriental Target. Hydrothermal silicified breccia with up to 2.36 g/t Au and 71 g/t Ag has been outlined at the Macho Libre Target. At El Molino, several new structures have been outlined, containing breccias with quartz boiling type textures, with initial results up to 1.6 g/t Au and most analytical results pending. At El Molino, ongoing soil sampling reveals continuous gold and silver anomalies, with supportive infill results from north-west to south-east along the trend”.

ON DEALS AND CORPORATE ISSUES

  • Santacruz Silver Mining Ltd., announced the appointment of its new CFO and Corporate Secretary of the Company effective January 9, 2023 (Zimapan property, Hidalgo).
  • Excellon Resources Inc., announced that its Board of Directors has approved the voluntary delisting of its common shares from the New York Stock Exchange (NYSE)and the deregistration with the U.S. Securities and Exchange Commission (SEC) (La Platosa mine, Durango).
  • Fabled Silver Gold Corp´s shareholders approved a share consolidation of the outstanding securities of the Company on an up to ten for one basis. The board of directors of the company has now determined to proceed with the consolidation on a five to one basis.  As of today’s date, the company has 215,446,649 common shares issued and outstanding. Following the completion of the consolidation (but before giving effect to the offering), the number of issued and outstanding common shares of the company will be approximately 43,089,330. (Santa Maria property, Chihuahua).
  • Vizsla Silver Corp., completed strategic investment in the acquisition of Palos Verdes project, Sinaloa from Prismo Metals Inc. Vizsla acquired a right of first refusal to purchase the Palos Verdes project from Prismo, and 4M units of Prismo at a price of $0.50 per Prismo unit, for aggregate consideration of $2M. Each Prismo unit consist of one common share of Prismo and one-half of one common share purchase warrant. Each Prismo Warrant entitles Vizsla to purchase one additional Prismo Share for a period of two years from the closing date at a price of $0.75.The consideration for the Strategic Investment consisted of a cash payment of $500K and the issuance to Prismo of 1M common shares of Vizsla. The Consideration Shares are subject to a statutory hold period of four months and one day, and a voluntary escrow period of 24 months with 25% of the securities released every six months.

ON SOCIAL RESPONSIBILITY

  • No relevant news.

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

On the picture above, a fault-plane displaying slickensides in a Mn-Fe hydrothermal breccia in a project in Chihuahua, Mexico.  Photo by Miguel A Heredia.

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

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Ginguro texture in banded quartz vein-breccia

By Miguel A Heredia

During the 52nd week of the year (December 26th to January 1st, 2022), at least 9 press releases were announced by companies working in Mexico, and 1 news published by the media with three disclosing deals and corporate issues, two informing on exploration results, two  reporting resources and developments of their properties, and two announcing financing issues. ON MEXICO ISSUES, Mining in Mexico closed 2022 with more expenses in exploration due to lack of mining concessions. ON EXPLORATION, In Sonora, Tocvan provided an annual summary of the activities carried out in 2022 at its Pilar and Picacho properties. In Chihuahua, Mammoth provided a year-end update on activities developed at its Tenoriba project. Zacatecas Silver provided a summary of the 2022 exploration activities developed at its Zacatecas Silver and Esperanza projects located in Zacatecas and Morelos States respectively. ON MINING, no relevant news. ON FINANCING, Guanajuato Silver closed the first tranche of its non-brokered private placement for gross proceeds of CAD $6.8M (El Cubo, San Ignacio, and Valenciana mines, Guanajuato). Regency completed a non-brokered private placement for gross proceeds of CAD $2,159,000 (Dios Padre Project, Sonora). ON RESOURCES AND DEVELOPMENT, MAG Silver reported that final testing of the downstream power distribution and control systems at its Juanicipio project in Zacatecas is now complete. Zacatecas Silver provided a summary of the 2022 exploration activities developed at its Zacatecas Silver and Esperanza projects located in Zacatecas and Morelos States respectively. ON DEALS AND CORPORATE ISSUES, Sierra Madre provided an update on its proposed acquisition of the La Guitarra mine in the State of Mexico. Gatos Silver provided a bi-weekly default status report in accordance with National Policy 12-203 – Management Cease Trade Orders (Cerro Los Gatos mine, Chihuahua). Mammoth announced the issuance of 2,206,000 common share stock options to directors, officers, and contract employees, exercisable at a price of $0.05 per common share (Tenoriba project, Chihuahua).   ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUE

  • Mining in Mexico closed 2022 with more expenses in exploration due to lack of mining concessions. The current administration of President Andres Manuel Lopez Obrador has not approved new mining concessions, which has led mining companies to invest more in exploration, with a view of finding new deposits in previously granted ground. In 2018, the concessioned area for mining activities in Mexico was of 10.64%, a figure that by the end of this 2022 stands at 8.59%, according to data from the Ministry of Economy.

ON EXPLORATION

  • Tocvan Ventures Corp., provided an annual summary of the activities carried out in 2022 at its Pilar and Picacho properties in Sonora. At Pilar project, the company executed the first core drilling program  which was successful in intersecting broad gold mineralization across the Main Zone with one hole returning 1.2 g/t Au over 116.9m, including 12 g/t Au over 10.2m, an a second hole returning 0.8 g/t Au over 108.9m, including 7.6 g/t Au over 9.4m. “Infill and recognizing drilling at Pilar has confirmed that gold mineralization occurs in at least three parallel zones to the Main Zone across a 600m wide area and so far defined along 600m of strike, the same that based on surface indications and historic workings seems to continue for another 600m towards the southeast”. Column Leach studies from surface material at Pilar returned above regional average recovery for gold, reporting over 85% recovery from initial metallurgical testing. At El Picacho property, surface work outlined key target areas across the large 24 square-km project area. An initial drill program was completed at its San Ramon Prospect, but results are pending to be released. 
  • Mammoth Resources Corp., provided a year-end update on activities developed at its Tenoriba project, Chihuahua. Highlights include the report of the final six drill holes of a 27-hole diamond drill program for a total of 3,244.25m. To date, Mammoth has drill-tested five targets zones within three project areas: El Moreno, Masuparia, and Carneritos, with 55 holes totalling 8,158.25m. “These project areas measure from hundreds of meters to over 1 km in strike length, along a 4km, east-west trend of gold-silver mineralization identified in 3-D modelling incorporating data from over 3,000 soil, chip and channel samples, 26 prior diamond drill holes, geological and structural mapping, and the potential continuity at depth of surface mineralization as indicated by an Induced Polarization/Magnetometer (IP/Mag) geophysical survey”.  The company is currently conducting additional studies on the results of the 27 holes, including metallurgical testing, as well as the assessment by a third party resource modelling expert to recommend drill spacing to estimate a maiden mineral resource at the Tenoriba project. The company is also working on a technical report to communicate findings, conclusions, and recommendation for future work. 

ON MINING

  • No relevant news.

ON FINANCING

  • Guanajuato Silver Company Ltd., issued a total of 15,952,196 units at a price of CAD $0.425 per unit to close the first tranche of its non-brokered private placement for gross proceeds of CAD $6.8M. Net proceeds will be used to ramp up production at the Company’s existing mines in and about Guanajuato, Mexico including El Cubo, San Ignacio and Valenciana, expand and modernize the processing facilities at the Topia mine in Durango, Mexico, increase brownfields’ exploration programs, and fund general and administrative expenses. The closing of a second tranche of the Offering is expected to occur on or about January 12, 2023.
  • Regency Silver Corp., completed a non-brokered private placement of 10,795,000 common shares at a price of CAD $0.20 per share for gross proceeds of CAD $2,159,000. The company paid a finder´s fee of CAD $16K in cash in connection with part of the closing of the private placement.  Net proceeds will be used for work programs on the properties of Regency Silver including drilling and geophysics in early January 2023 on our flagship Dios Padre property, for property payments on other properties of the Company and for general working capital.

ON RESOURCES AND DEVELOPMENT

  • MAG Silver Corp., received confirmation from Fresnillo plc that final testing of the downstream power distribution and control systems at its Juanicipio project in Zacatecas is now complete. The entire system has now been energized and Juanicipio has been connected to the national power grid.
  • Zacatecas Silver Corp., provided a summary of the 2022 exploration activities developed at its Zacatecas Silver project in Zacatecas State, and Esperanza project in Morelos State. At Zacatecas project, the company filed a NI 43-101 technical report to support its initial Mineral Resource Estimate on the Panuco Vein located within the Zacatecas Silver project. After filing the technical report, the company reported multiple high grade silver intercepts from drilling in an area north of the resource, named Panuco North and in an area of the property named El Cristo, which is an extension of the prolific Veta Grande Silver Vein on the Zacatecas Silver Property. At Esperanza project, the company completed an initial Mineral Resource Estimate outlining a high grade oxide gold deposit with significant exploration potential, and reported that a Pre-Feasibility Study is underway to support high margin, high grade, low capex, and low cost production. In addition, the company announced that multiple community programs continue to function and grow, including projects relating to health, education, and environment.

ON DEALS AND CORPORATE ISSUES

  • Sierra Madre Gold and Silver ltd., entered an arm´s length definitive agreement with First Majestic on May 25, 2022 to acquire a 100% interest in the 39,714-hectare La Guitarra mine in the State of Mexico and provided an update on its proposed acquisition. Earlier this month, shareholders voted in favour of a resolution to approve the proposed acquisition of all the issued and outstanding shares of La Guitarra Compañia Minera S.A. de C.V from Corporacion First Majestic, S.A. de C.V., in exchange for 69,063,076 common shares of the company at a deemed price of CAD $0.65 per Consideration Share, having an aggregate value of CAD $44,890,999 (USD $35M). The ordinary resolution with respect to the transaction was approved by 99.99% of the votes cast by shareholders. The transaction has been conditionally accepted by the TSX Venture Exchange.
  • Gatos Silver Inc., provided a bi-weekly default status report in accordance with National Policy 12-203 – Management Cease Trade Orders (MCTO). Pursuant to National Policy 12-203, the company must file bi-weekly status reports in the form of further news releases during the period from the Notice until the MCTO is revoked. “The company reports that since the Notice: (i) there have been no material changes regarding the information contained in the Notice that have not been disclosed in a bi-weekly default status report or in a news release referenced therein; (ii) there have been no failures by the company in fulfilling its stated intentions with respect to satisfying the provisions of the alternative information guidelines under NP 12-203; and (iii) there has not been any specified default subsequent to the defaults announced in the Notice and the news releases dated May 13, 2022, August 5, 2022 and November 11, 2022”.  (Cerro Los Gatos mine, Chihuahua).
  • Mammoth Resources Corp., announced the issuance of 2,206,000 common share stock options to directors, officers, and contract employees, exercisable at a price of $0.05 per common share (Tenoriba project, Chihuahua).

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, ginguro texture in a banded quartz vein-breccia from an intermediate sulphidation epithermal system in a project in Zacatecas, Mexico.  Photo by Miguel A Heredia.

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

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Cockade texture

By Miguel A Heredia

During the 42nd week of the year (October 17th to October 23th, 2022), at least 15 press releases were announced by companies working in Mexico, and 4 news published by the media with six communicating production and financial issues, four reporting resources and developments of their properties, four commenting on Mexican issues, two announcing financing issues, one discussing social issues, one discussing deals and corporate issues, and one informing on exploration results. ON MEXICO ISSUES, Hermosillo, the capital city of the Sonora State, hosted the 14th International Mining Congress in October 18-21, 2022 with the participation of over 5,000 people. The Mexican Mining Chamber (CAMIMEX) warned that thefts of output and goods like explosives in the mining industry continue to increase despite the support provided by the Secretary of National Defense (SEDENA). According to data from the Ministry of Economy, the Mining Chamber of Mexico (Camimex) and experts, there is a mining collapse in Mexico since 822 mining projects were postponed, 180 foreign capital firms have left the country and there are 25 concessions stopped. GoGold and GR Silver reported the best drilling intercepts in Mexico on the third week of October, 2022. ON EXPLORATION, In Sinaloa, Prismo provided an update on its ongoing drill program conducted at its Palos Verdes project located in the historic Panuco-Copala mining district.  ON MINING, Avino, Santacruz, Golden Minerals, American Gold and Silver, and First Majestic reported Q3, 2022 production results from their Mexican mining operations, while Guanajuato Silver announced that it has recommenced mining at its Valenciana Mines Complex in Guanajuato, and provided a 6-month production estimate. ON FINANCING, Sierra Metals announced that it has commenced a process to evaluate and consider the company´s current financial and liquidity position, operational challenges and possible financing and restructuring alternatives that may be available to the company. Barksdale closed the final tranche of its previously announced non-brokered private placement for gross proceeds of $264K, and completed an extension of financial instruments (San Javier project in Sonora).  ON RESOURCES AND DEVELOPMENT, Avino announced that the installation and commissioning of the dry-stack tailings at its Avino mine in Durango has been completed. GoGold reported the acquisition of the 1,107 Ha Eagle concession covering the northern strike of the Main Deposit on the Los Ricos South property in Jalisco. Equinox released an updated feasibility study (FS) for its Los Filos mine expansion located in Guerrero State. GR Silver presented drilling results and announced the extension of the SE Area Silver Discovery at its Plomosas deposit in Sinaloa. ON DEALS AND CORPORATE ISSUES, Avinois conducting community agreements in the nearby towns adjacent to its la Preciosa property in Durango as it is committed to moving this project forward as part of the company´s 5-year growth strategy. ON SOCIAL RESPONSIBILITY, Industrias Peñoles and Fresnillo plc mining companies reiterated their commitment in saving and energy efficiency to continue implementing actions that contribute to the fight against global warming in order to build the mining of the 21st century.

ON MEXICO ISSUES

  • Hermosillo, the capital city of the Sonora State, hosted the 14th International Mining Congress during October 18-21, 2022, with the participation of over 5,000 people.
  • The Mexican Mining Chamber (CAMIMEX) warned that thefts of output and goods like explosives in the mining industry continue to increase despite the support provided by the Secretary of National Defense (SEDENA). The General Director of CAMIMEX, Karen Flores, said that thefts remain a recurrent issue in the sector and highlighted that these crimes are probably perpetrated by organized crime.
  • According to data from the Ministry of Economy, the Mining Chamber of Mexico (Camimex) and experts, there is a mining collapse in Mexico since 822 mining projects were postponed, 180 foreign capital firms have left the country and there are 25 concessions stopped. If the policy were to change, 30% more jobs would be created and the contribution to Mexico’s GDP would increase by 0.5%, according to estimates. Mining and metallurgical activity exceeded tourism by 19% in foreign exchange generation. The president of the Association of Mining Engineers, Metallurgists and Geologists of Mexico (AIMMGM), indicated that the uncertainty generated by this administration in the sector has caused a slowdown, which has left investments far from the more than USD $8 billion that were reached in previous years. GoGold Resources Inc., and GR Silver Mining Ltd., reported the best drilling intercepts in Mexico on the third week of October, 2022. Details are shown in the table below:

ON EXPLORATION

  • Prismo Metals Inc., provided an update on its ongoing drill program conducted at its Palos Verdes project located in the historic Panuco-Copala mining district in the state of Sinaloa. A total of 1,203m in 4 holes have been drilled to date out of a planned minimum of 2,000m. Drilling has intersected wide structural zones at depth where the Palos Verdes vein is branching into several strands measuring from about 0.5m to 9m in width in andesitic rocks. Core sampling is being completed on the entire structural zone including wall rock with veinlets. Assay results are expected to arrive in early November, 2022.

ON MINING

  • Avino Silver & Gold Mines Ltd., reported Q3, 2022 production results from its Avino mine in Durango. The company milled 162.1K tonnes of 59 g/t Ag, 0.31 g/t Au, and 0.66% Cu with metallurgical recoveries of 92%, 74%, and 89% respectively to produce 285.4K Oz Ag, 1.2K Oz Au and 2.1M Lb Cu (778K Oz AgEq).
  • Santacruz Silver Mining Ltd., announced Q3, 2022 production results from its Zimapan mine in Hidalgo. It milled 215,765 tonnes of 79 g/t Ag, 2% Zn, 0.7% Pb, and 0.39% Cu to produce 368.6K Oz Ag, 6.8M Lb Zn, 2.6M Lb Pb, and 1.4M Lb Cu (988.6K Oz AgEq).
  • Guanajuato Silver Company Ltd., has recommenced mining at its Valenciana Mines Complex (VMC) in Guanajuato. Cut & fill mining of high-grade epithermal veins at Valenciana is currently focused on the Los Pozos mine area where several mineralized blocks had been previously defined. Mineralized material from Valenciana is currently being transported to El Cubo for processing. The company expects to mine 5,000 tonnes per month at Valenciana throughout the remainder of 2022. “The Cata processing facility is centrally located within the Valenciana Mines Complex and has a production capacity of 36,000 tonnes per month. In November 2021 Cata was placed on care & maintenance by its previous owner. Guanajuato Silver had initially anticipated restarting the Cata mill in 2023, but with the rapid recommencement of mining at San Ignacio and the VMC, the company now expects to restart mineral processing at Cata before the end of 2022. The company also provided a 6-month production estimate. Guanajuato Silver expects to mine 125K-140K tonnes in Q4, 2022 to produce over 760K-985K and over 140K-160K tonnes in Q1, 2023 to produce over 910K-1.15M Oz AgEq.
  • Golden Minerals Company announced Q3, 2022 production and financial results from its Rodeo mine in Durango. The company mined 192,545 tonnes and reported that 23,618 tonnes were placed in stockpiles awaiting processing and 121,202 tonnes were placed in low grade stockpiles. Golden processed  47,947 tonnes of 2.6 g/t Au and 10 g/t Ag with metallurgical recoveries of 74.6% and 77.6% respectively., to produce 2,972 payable Oz Au in Dore and 11,907 payable Oz Ag in Dore (3,103 payable Oz AuEq in Dore). The company sold 3,108 Oz Au and 11,609 Oz Ag (3,145 Oz AuEq) at an average realized price before refining and selling costs of USD $1,703.10 per Oz Au and USD $18.72 per Oz Ag.
  • Americas Gold and Silver Corporation reported Q3, 2022 production results from its Cosalá operations in Sinaloa. It produced 186K Oz Ag, 3.8M Lb Pb, and 9.4M Lb Zn and announced that silver production from the Cosalá operations for the full year 2022 is expected to be at the lower end of the projected range of 0.7-0.9M Oz Ag, while zinc and lead production are expected to be towards the upper end of the projected ranges of 36 to 40M Lb Zn and 13 to 15M Lb Pb.
  • First Majestic Silver Corp., reported Q3, 2022 production results from their Mexican Mining operations (San Dimas in Durango, Santa Elena in Sonora, and La Encantada in Coahuila). Figures by mine are shown in the table below:

ON FINANCING

  • Sierra Metals Inc., announced that it has commenced a process to evaluate and consider the company´s current financial and liquidity position, operational challenges and possible financing and restructuring alternatives that may be available to the company. “The company faces liquidity challenges as a result of the recent previously announced suspension of operations at the Yauricocha Mine in Peru, and operating losses and negative cash flows that have accumulated, primarily from the Bolivar and Cusi operations in Mexico”. 
  • Barksdale Resources Corp., closed the final tranche of its previously announced non-brokered private placement with Teck Resources Limited for gross proceeds of $264K. The net proceeds will be used for general corporate and working capital purposes. Barksdale also completed an extension of the maturity date of the secured convertible debentures administered by Delbrook Capital Advisors Inc. by one year until December31, 2023. The debentures have a remaining principal amount of $1.5M and all other terms of the debentures remain unchanged except for the conversion price, which has increased to $0.55 per share from $0.45 per share (San Javier project in Sonora).

ON RESOURCES AND DEVELOPMENT

  • Avino Silver & Gold Mines Ltd., announced that the installation and commissioning of the dry-stack tailings at its Avino mine in Durango has been completed. The company chose dry-stack tailings for its environmental, safety and economic advantages, as well as because it reduces the need to extract water from local sources by recycling the water removed from tailings.
  • GoGold Resources Inc., reported the acquisition of the 1,107 Ha Eagle concession covering the northern strike of the Main Deposit on the Los Ricos South property in Jalisco by USD $2.1M to be paid over 4 years. As a result of this acquisition, all of the concessions in Los Ricos South are now contiguous. “This offers the potential for an additional bulk tonnage target in Los Ricos South, with continuity from the Main Area and Eagle”.
  • Equinox Gold Corp., released an updated feasibility study (FS) for its Los Filos mine expansion located in Guerrero State. Highlights of the FS include an after-tax NVP at  5% discount rate of USD $625M at base case of USD $1,675 per Oz Au; after-tax IRR of 26% at USD $1,675 per Oz Au; 5.4M Oz Au of Proven + Probable Mineral Reserves with grades of 0.65 g/t Au for open pit ore material and 3.94 g/t Au for underground ore material (average grade of 0.86 g/t Au); 7.9M Oz Au of Measured and Indicated Resources (exclusive of Reserves) with grades of 0.71 g/t Au for open pit ore material and 3.65 g/t Au for underground ore material (average grade of 0.75 g/t Au); 3.97M Oz life-of-mine (LOM) Au production, with  360K Oz peak average annual gold production (2025-2030), 280K Oz average annual gold production LOM (2023-2036), 1.22M Oz Au produced from the heap leach with average recovery of 55%, 2.75M Oz Au produced from the CIL plant with average recovery of 88%; 11.83M Oz LOM silver production; USD $993M after-tax LOM cumulative net cash flow; USD $981/ Oz average LOM cash cost; USD $1,081/Oz average LOM AISC; USD $318M initial capital cost to build the CIL plant and associated infrastructure; and 14.5-year mine life with extension potential from Mineral Resources conversion and exploitation success.
  • GR Silver Mining Ltd., presented drilling results and announced the extension of the SE Area Silver Discovery at its Plomosas deposit in Sinaloa. Drilling highlights include hole SMS22-16 which identified a wide hydrothermal breccia and stockwork system with multiple high grade Ag intervals such as 112 g/t Ag, 0.06 g/t Au, and 0.1% Zn over 123.1m, including 289 g/t Ag, 0.05 g/t Au, and 0.1% Zn over 13.1m, including 4,680 g/t Ag, 0.57 g/t Au, 0.1% Pb, and 0.1% Zn over 0.4m, and 250 g/t Ag, 0.1 g/t Au, 0.1% Pb, and 0.3% Zn over 27.3m, including 1,351 g/t Ag, 0.3 g/t Au, 0.1% Pb, and 0.2% Zn over 0.3m, and 635 g/t Ag, 0.08 g/t Au, 0.2% Pb, and 0.3% Zn over 6.4m, including 2,203 g/t Ag, 0.17 g/t Au, 0.8% Pb, and 1.4% Zn over 0.5m, and 102 g/t Ag and 2.6 g/t Au over 1.5m; and hole SMS22-14 with 23 g/t Au and 0.06 g/t Au over 10.5m, and 118 g/t Ag, 0.02 g/t Au, and 0.1% Zn over 3.5m, including 1,790 g/t Ag, 0.03 g/t Au, 0.7% Pb, and 2.9% Zn over 0.2m, and 22 g/t Ag, 0.08 g/t Au over 10.9m. The drilling program continues at the SE Area to define the geometry and lateral extents of the mineralization. “The occurrence of Ag anomalous zones on surface along the 1.5km target contact, further SE from the SE Area, provides new targets for the company to continue drilling, aimed at expanding the footprint of mineralization and potentially for incorporation into the planned resource estimation update in Q1, 2023”.

ON DEALS AND CORPORATE ISSUES

  • Avino Silver & Gold Mines Ltd is conducting community agreements in the nearby towns adjacent to its la Preciosa property in Durango as it is committed to moving this project forward as part of the company´s 5-year growth strategy.

ON SOCIAL RESPONSIBILITY

  • Industrias Peñoles S.A.B. de C.V. and Fresnillo plc mining companies reiterated their commitment in saving and energy efficiency to continue implementing actions that contribute to the fight against global warming in order to build the mining of the 21st century. In accordance with their sustainable development policies, both companies have programs to reduce greenhouse gas emissions, such as those from transportation, for which they implemented a strategy to save energy and use clean sources. Peñoles and Fresnillo plc are committed to caring for the environment and seek to achieve, in the near future, the objective of zero significant environmental impacts.

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, cockade texture from a low-sulphidation epithermal Au-Ag vein system in a project in Sinaloa, Mexico.  Photo by Miguel A Heredia.

The Mining and Exploration News in Mexico; Highlights on the First Week of September 2022

/ Gambusino Prospector / Leave a comment

By Jorge Cirett

During the 35th week of the year (August 29th to September 4th, 2022), at least 21 press releases were announced by companies working in Mexico. Five companies posted exploration advances on their properties and three presented production results for the second quarter, while one more provided an operational update. One company sold a portfolio of royalties in Mexican properties, one declared a dividend and closed a $5 M concentrate pre-payment facility. On advanced properties, one company reported metallurgical results, one updated its resource base, one released PEA numbers and one more released drilling results. One company is looking for partners for its projects and one more informed on the completion of the bought of their flagship property.  ON MEXICO ISSUES, the lithium government company is to be run by the son of one federal government executive in Sonora. The rescue effort on ten coal miners in Coahuila is changing to a recovery mission. ON EXPLORATION, in Sonora, Tocvan Ventures released drilling results from Pilar; Prismo Metals received the Lidar survey processed data on Los Pavitos. In Chihuahua, Radius Gold presented drilling results from Amalia. Kootenay Silver released drilling results from Columba. In Zacatecas, Zacatecas Silver reported drill results from El Cristo vein. ON MINING, Impact Silver, Santacruz Silver and Magna Gold financial/operational results for the second quarter 2022. Guanajuato Silver Company provided and operational update on Topia, San Ignacio and El Cubo and Valenciana complexes. ON FINANCING, Millrock Resources sold a portfolio of royalties in Mexican properties to Osisko Gold Royalties. Alamos Gold declared a quarterly dividen, Guanajuato Silver Company closed on a $5 M concentrate pre-payment facility.  ON RESOURCES AND DEVELOPMENT, Discovery Silver reported metallurgical results from its Cordero project in Chihuahua. Starcore International Mines updated on NI 43-101 complaint resources at its San Martin mine in Queretaro. Southern Silver Exploration released numbers on the recently completed PEA at its Cerro Las Minitas project in Durango. Capitan Mining reported drilling results from the Jesus Maria target at its Cruz de Plata project in Durango. ON DEALS AND CORPORATE ISSUES, Mexus Gold US is seeking a partner for its Santa Elena property in Sonora. Minaurum Gold completed the acquisition of its Alamos Silver property in Sonora, with a final payment in cash and shares. ON SOCIAL RESPONSIBILITY, Vizsla Silver released its environmental social and governance (ESG) initiative.

ON MEXICO ISSUES

  • LitioMx. The federal government operation of its newly created Lithium Mining Company (LitioMx) is still hazy, but the possibility has been raised that private companies might participate, also that the current Sonora governor might be involved, and a director has been named, which happens to be a relative of the presidency representative in the State (Although eager to advertise its different way of doing things, this government is making a great effort to replicate the worst practices of past governments).
  • Trapped Coal Miners. Blame put aside, the fate of the 10 trapped miners in Coahuila after the flooding of the coal mine on August 3 is almost defined, and the effort is now changing from rescue to body recovery, which might take months.

ON EXPLORATION

  • Prismo Metals Inc. received results from the Lidar survey carried out at its 5,289 ha Los Pavitos project in Sonora. “Mineralization at Los Pavitos consists of quartz veins and stockworks hosted in metasediments, in shear zones and parallel to foliation and crossing foliation”.
  • Tocvan Ventures Corp. released results from the four final holes drilled at its Pilar project in Sonora. Highlighted drill length intervals comprise 16.78 m @ 0.11 gpt Au; 18.30 m @ 0.24 gpt Au; 50.33 m @ 0.14 gpt Au, 10 gpt Ag (including 10.68 m @ 0.59 gpt Au, 40 gpt Ag); 21.35 m @ 0.13 gpt Au. “All four drill holes were drilled in new areas and intersected alteration and structures known to host gold-silver mineralization at Pilar”.
  • Zacatecas Silver Corp. reported results from the completed phase one diamond drilling at El Cristo vein system in the Zacatecas Silver project in Zacatecas. Highlighted core length intervals comprise 2.1 m @ 204 gpt Ag; 9.0 m @ 149 gpt Ag; 0.53 m @ 200 gpt Ag, 0.34 gpt Au, 0.8% Pb, 0.8% Zn; 0.82 m @ 84 gpt Ag, 0.14 gpt Au, 11.8% Pb, 3.7% Zn; 0.85 m @ 45 gpt Ag, 0.82 gpt Au, 1.9% Pb, 2.4% Zn; 3.0 m @ 250 gpt Ag; 0.55 m @ 198 gpt Ag, 1.6 m @ 175 gpt Ag. “Drill holes targeted the near surface depth extension of the larger surface workings and/or the depth extension of veins around the deeper historical shaft. The 28 holes drilled to date by the Company have been scout holes also designed to test select veins over at least 2 km of strike extension”.
  • Radius Gold Inc. reported results from three drill holes on El Cuervo target at the Amalia project in Chihuahua (Radius 35%, Pan American Silver 65%). Highlighted core length drill results comprise 17.00 m @ 438 gpt Ag, 0.80 gpt Au (including 2.0 m @ 3,182 gpt Ag, 4.49 gpt Au); 13.55 m @ 841 gpt Ag, 10.25 gpt Au (including 5.65 m @ 1,560 gpt Ag, 19.6 gpt Au). “Drilling at El Cuervo has defined mineralization similar to the Amalia structure, consisting of epithermal quartz veins, breccias and veinlets stockworks hosted within rhyolite volcanics along a major fault system. El Cuervo remains open to expansion along strike and to depth”.
  • Kootenay Silver Inc. released another batch of results from its phase 4 drilling program at Columba, Chihuahua. Highlighted core length results comprise 3.90 m @ 574 gpt Ag, 0.2% Pb, 0.7% Zn (including 0.90 m @ 949 gpt Ag, 0.4% Pb, 1.1% Zn) in the D vein, and 17.00 m @ 95 gpt Ag, 0.1% Zn (including 2.05 m @ 221 gpt Ag, 0.2% Zn); 0.4 m @ 325 gpt Ag, 0.2% Pb, 0.6% Zn; 1.58 m @ 425 gpt Ag, 0.1% Pb, 0.3% Zn; 2.97 m @ 91 gpt Ag, 0.2% Zn; 1.63 m @ 2,330 gpt Ag, 0.8% Zn; 6.5 m @ 156 gpt Ag, 0.1% Pb, 0.1% Zn (including 1.05 m @ 769 gpt Ag, 0.5% Zn); 1.00 m @ 305 gpt Ag, 0.2% Pb, 0.2% Zn; 1.00 m @ 194 gpt Ag, 0.2% Pb, 0.2% Zn.

ON MINING

  • Impact Silver Corp. announced financial and operating results for the second quarter 2022. At its Real de Zacualpan project in Estado de Mexico, 37.2 K tonnes averaging 159 gpt Ag were milled during the period, to sell 151.3 K Oz Ag. Impact has no long term debt and cash on hand stands at $18.4 M. Two underground and two surface rigs continue with the 20,000 meters drilling program for the year.
  • Santacruz Silver Mining Ltd. reported its financial and operating results for the second quarter 2022. At Zimapan, in Hidalgo, 200 K tonnes were milled to produce 914.5 K Oz AgEq at $16.71 cash cost per Oz AgEq and an AISC of $20.64 per Oz AgEq.
  • Magna Gold Corp. announced operating and financial results for the second quarter of 2022. At the San Francisco mine in Sonora 5.9 M tonnes were mined, of which 1.4 M tonnes averaging 0.39 gpt Au were placed on the heaps to produce 10,795 Oz Au. Cash at the end of the period was $1.4 M, while working capital was negative $35.4 M. “management believes it is prudent to preserve capital by reducing mining rates and secondary activities across the Company’s portfolio of assets……… the Company’s board and management determined that previously stated guidance for FY 2022 will be retracted and revised at a later date when a more accurate estimate of production impacts is known”.
  • Guanajuato Silver Company Ltd. provided an operational update detailing the integration of El Cubo mine and milling complex with the recently acquired Topia (Durango) and San Ignacio (Guanajuato) mines from Great Panther Mining Ltd. and the San Ignacio mine and Valenciana mines complex (both in Guanajuato). At El Cubo, the development of a 150 m tunnel and ramp reduced the total haulage distance from 7.2 km to 2.5 km with a strong impact on the project economics. Mineral from the San Ignacio mine is being transported to El Cubo mill for processing, and is expected to provide 5 to 6 K tonnes of material per month to the end of the year. At the Valenciana Mines Complex opportunities are being reviewed to restart mining and to process the material at the Cata mill in 2023. At Topia, the sale of 99.2 dry tonnes of Pb-Zn-Au concentrate 97.7 dry tonnes of Zn-Ag concentrate has been reported since the completion of the acquisition.

ON FINANCING

  • Millrock Resources Inc. sold a portfolio of royalties to Osisko Gold Royalties Ltd. with gross proceeds of $1.2 M. The Mexican properties involved include Santa Rosalía (Sonora), El Valle, El Pima (Sonora), Violeta and Guadalcazar (San Luis Potosi).
  • Alamos Gold Inc. informed the company’s board of directors declared a quarterly dividend of US$0.025 per common share (Mulatos, Sonora).
  • Guanajuato Silver Company Ltd. reported that in conjunction with the acquisition of the Topia mine in Durango and the Mine Complex in Guanajuato from Great Panther Mining Ltd., has closed a US$5 M concentrate pre-payment facility with Ocean Partners UK Ltd. “Interest on the loan will be calculated at 12-month LIBOR + 7.5%” (Guanajuato Mine Complex, Guanajuato).

ON RESOURCES AND DEVELOPMENT

  • Discovery Silver Corp. reported results from the metallurgical test program on the pre-feasibility study (PFS) from its Cordero project in Chihuahua. Recoveries of 94-98% Ag, 89-97% Pb, 92-96% Zn were achieved on high grade samples of all major rock types, and recoveries of 83-92% Ag, 85-92% Pb, 81-89% Zn on medium grade samples of blended rock types. “Oxide-sulphide blend testwork establish oxide-specific recoveries of ~60% for silver, ~40% for lead and ~85% for zinc via flotation; co-processing oxide mineralized material via flotation eliminates the need for heap leach processing”.
  • Starcore International Mines Ltd. released its updated NI 43-101 reserve and resource estimates for its San Martin mine in Querétaro. Proven and probable reserves stand at 1.35 M tonnes @ 1.74 gpt Au, 13 gpt Ag containing 75,353 Oz Au, 573 K Oz Ag, and indicated and inferred resources of 1.48 M tonnes @ 1.78 gpt Au, 14 gpt Ag, containing 160,352 Oz Au, 1.22 M Oz Ag. The exploration program for 2022 envisages 10,000 meters of diamond drilling near the current operations.
  • Southern Silver Exploration Corp. reported results from its preliminary economic assessment (PEA) on its Cerro Las Minitas project in Durango. The study’s base case envisages an after-tax NPV5% of $349 M, an IRR of 17.9% with Ag at $21.95 per Oz, Cu at $3.78 per Lb, Pb at $0.94 per Lb, Zn at $1.33 per Lb. The indicated mineral resources included on the study comprise 12.3 M tonnes @ 106 gpt Ag, 0.16% Cu, 1.3% Pb, 3.3% Zn containing 42.1 M Oz Ag, 44 M Lb Cu, 358 M Lb Pb, 895 M Lb Zn, while inferred resources comprise 19.6 M tonnes @ 117 gpt Ag, 0.23% Cu, 1.2% Pb, 2,3% Zn, totaling 73.6 M Oz Ag, 98 M Lb Cu, 500 M Lb Pb, 1,009 M Lb Zn. Only sulfide mineralization was included in the study to produce Cu, Pb and zinc concentrates with the recoveries estimated at 91.6% Ag, 60% Cu, 88% Pb, 93% Zn.
  • Capitan Mining Inc. reported exploration results from five reverse circulation holes at its Cruz de Plata project in Durango. “All drillholes were successful in intersecting Jesus Maria style mineralization, expanding the zone between 43m and 114m down-dip along section”. Highlighted drill length intervals comprise 3.0 m @ 52 gpt Ag, 0.10 gpt Au, 1.3% Pb, 3.4% Zn; 19.8 m @ 29 gpt Ag, 0.08 gpt Au, 0.4% Pb, 0.6% Zn; 13.7 m @ 69 gpt Ag, 0.17 gpt Au, 0.5% Pb, 1.0% Zn; 21.3 m @ 84 gpt Ag, 0.05 gpt Au, 0.6% Pb, 0.7% Zn (including 1.5 m @ 189 gpt Ag, 0.02 gpt Au; 2.3% Pb, 2.3% Zn.

ON DEALS AND CORPORATE ISSUES

  • Mexus Gold US. continues to seek the right partner for production and/or exploration of its Santa Elena property in Sonora (not to mistake for First Majestic’s Santa Elena mine, also in Sonora).
  • Minaurum Gold Inc. announced the completion of the acquisition of 100% interest in the Alamos Silver project in Sonora. The 37,928-hectare property encompasses the historical 200 M Oz Ag Alamos district including 26 epithermal veins. Minaurum completed all work commitments and option payments and made a final compensation of C$300 K in cash and 443.6 K shares.

ON SOCIAL RESPONSIBILITY

  • Vizsla Silver Corp. announced the continued progression on its environmental, social and governance (ESG) initiatives through safety, sustainability and commitment to communities.

On the image below: Banded Specularite-quartz-calcite vein in the Sonoran Desert. Picture by Jorge Cirett.