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

Stibnite in a fine grained quartz vein.

By Miguel A Heredia

During the thirty seven week of the year (September 7th to September 13th, 2020), at least 24 press releases were announced by companies working in Mexico and 13 news published by the media, with ten disclosing deals and corporate issues, seven discussing social issues, six commenting on Mexican issues, five informing on exploration results, five announcing financial rounds, two reporting on resources and developments of their mine operations, and two communicating production and financial results.  ON MEXICO ISSUES, Deputy Mario Delgado from MORENA party presented a reform to eliminate trust funds, including the Mining Fund. Mexico intends to lead lithium production. Federal Deputy Monica Almeida of the PRD party stated that the disappearance of the undersecretary of Mining must be re-considered. Mining companies operating in Mexico have cut their capital investment budgets by 20% on average in 2020 due to disruptions caused by COVID-19. The company Roca Fosforica Mexicana (Rofomex) seeks to expand its mining area in Baja California Sur.  ON EXPLORATION, In Sonora, Colibri received an exploration permit to begin a trench program at its Evelyn project, and Silver Tiger provided an exploration update for its El Tigre project. In Sinaloa, Brigadier provided an exploration update on its Picachos project, and Oroco initiated a 3D IP survey at its Santo Tomas project. In Durango, Canasil released results from 2 drill holes collared recently at its Nora project. ON MINING, Excellon provided an operation update on its La Platosa mine in Durango. Consolidated Zinc reported H1, 2020 production and financial results from its Plomosas mine in Chihuahua.  ON FINANCING, Mag Silver completed its previously announced at the market equity program for gross proceeds of USD $50M (Juanicipio property, Zacatecas). Comet Resources announced that it will be conducting a placement to raise gross proceeds of $2M (Santa Teresa project, Baja California). Excellon completed its share consolidation (La Platosa mine, Durango). Monarca completed its previously announced shares for debt transaction to settle an aggregate of $301,324 owing to certain officers, directors and services providers of the company. Sable closed its previously announced private placement for total gross proceeds of approximately $9.9M (Margarita and Vinata project, Chihuahua). ON RESOURCES AND DEVELOPMENT, Bacanora provided an operational update of its Sonora Lithium project in Sonora. Capstone provided updated proven and probable mineral reserves and positive results of an updated technical report for its Cozamin mine in Zacatecas.    ON DEALS AND CORPORATE ISSUES, Excellon announced that it has applied to list on the New York Stock Exchange (NYSE) American (La Platosa mine, Durango).  Mithril announced that its CEO was appointed as Managing Director (Copalquin project, Durango). Sonoro announced results of its annual general meeting of shareholders and changed its name from Sonoro Metals Corp. to Sonoro Gold Corp (Cerro Caliche project, Sonora). Alien entered into an exclusivity agreement with Capstone in respect of the potential farm out of an interest in its Donovan 2 Copper-Gold project in Zacatecas. Almaden announced the decision of the Second District Court in Puebla in respect of its environmental permit application for its Ixtaca project in Puebla.  Argonaut entered into a definitive agreement for the sale of its Ana Paula property in Guerrero.  Consolidated Zinc secured an agreement with Industrias Peñoles to sale the 100% of the Zn concentrate produced by the company in 2021. Newmont appointed Susan N Story to its board of directors and achieves gender parity for non-executive directors (Peñasquito mine, Zacatecas).  Southern Silver presented results from its annual general meeting of shareholders (Cerro Las Minitas project, Durango). ON SOCIAL RESPONSIBILITY, First Majestic invested USD $3.8M in local communities where it operates.  Fresnillo plc, continued donating personal equipment to prevent infections by COVID-19 in Caborca, Sonora. The Municipal President of Fresnillo, Zacatecas delivered the first stage of the rainwater collector with an investment of MXP $6M from the Mining Fund. The Municipal President of Cuencame, Durango announced that MXP $16.6M from the Mining Fund were invested in the construction of domes and paved streets, installation of electrical network, potable water and drainage in several communities in Cuencame, Durango. Grupo Mexico offered more than 130 weekly workshops via social networks generating content for the community. Minera Media Luna (Torex) improved public spaces in the Atzcala community in Guerrero. The Peñoles nursery garden continues donating trees to people seeking to expand the green folder in their home, plaza or a larger space for the population, and continue supporting the community with other social activities.

ON MEXICO ISSUES

  • Deputy Mario Delgado from MORENA party presented a reform to eliminate trust funds, including the Mining Fund. A period is proposed for the Ministry of Finance and Public Credit and the Welfare Bank (Banco del Bienestar, created by MORENA) to proceed to the extinction of the Public Administration and Payment Trust called “Fund for the Development of Mining Production Zones” (Mining Fund), in accordance with provided for in the Federal Budget and Fiscal Responsibility Law. Obviously, this is not the reason and the goal the Mining Fund was created for.
  • Mexico intends to lead lithium production since lithium is required to make rechargeable batteries, and the demand for this mineral has multiplied in the last decade, with the rise of laptops and smartphones. Annual sales of batteries made from lithium-ion batteries are projected to reach a value of $100B in 2029 and about $116B in 2030, according to Bloomberg New Energy Finance. While Mexico’s reserves are not yet certified, the size of the deposit found in Sonora (Sonora Lithium project owned by Bacanora)- which, according to Mining Technology, is the largest deposit under development in the world – placed the country on the radar of global lithium investors. The project will be the first to produce significant volumes of lithium in Mexico. Initially, production is estimated to approach 17,500 tonnes per year of lithium carbonate, which will double to 35,000 tonnes starting in 2026, after a projected expansion in its investment of USD $380M.
  • Monica Almeida, Federal Deputy of the PRD party, stated that the disappearance of the undersecretary of Mining must be re-considered and warned that neither the economic adjustments nor the so-called “republican austerity” should be a pretext for the disappearance of an undersecretary that served a sector of utmost importance for Mexico, since at the world is within the top 10 in the production of 19 minerals. This measure was not shared by the members of the country’s mining sector, among which are the Mexican Mining Chamber (CAMIMEX), the Association of Mining Engineers, Metallurgists and Geologists of Mexico (AIMMGM), the Mining Task Force of the Canadian Chamber of Commerce in Mexico (CANCHAM), the Mining Clusters of Chihuahua, Guerrero, Sinaloa, Sonora and Zacatecas, the College of Mining Engineers, Metallurgists and Geologists of Mexico (CIMMGM) and the organization Mujeres en la Mineria – WIM Mexico; who have openly expressed their disagreement with the measure. It should be remembered that the mining-metallurgical sector in Mexico contributes 2.4% of GDP. Also this year, our country ranks first in silver production worldwide, generating 379 thousand direct jobs and 2.4 million indirect ones.
  • Mining companies operating in Mexico have cut their capital investment budgets by 20% on average in 2020 due to disruptions caused by COVID-19. Updated estimates from nine of the country’s largest gold, silver and copper producers show total spending of USD $1.95B, down USD $488M from the projected amount of USD $2.44B before the pandemic.
  • The company Roca Fosforica Mexicana (Rofomex) seeks to expand its mining area in San Juan de la Costa north of La Paz Baja California Sur. Rofomex filed an environmental permit to explore outside the boundaries of the mining project. The exploration plan established an area where the project will be carried out. It is more than 1,203 ha and contemplates the completion of works for the drilling of 7 holes.

ON EXPLORATION

  • Colibri Resource Corporation received an exploration permit to begin a trench program at its Evelyn project. The company plans to dig up to 2.2km of trenches in up to 13 separate areas on Evelyn project in order to extend mineralization at selected occurrences and to provide exposure for geological and structural mapping of veins and structures.
  • Silver Tiger Metals Inc., provided an update on ongoing exploration at its wholly-owned El Tigre Silver project in Sonora. The company is currently conducting a drill program with two rigs focused on the Caleigh, the Protectora and the Fundadora veins, all of which outcrop on surface and are exposed in exploration drifts in the 3km north of the historic El Tigre mine.
  • Brigadier Gold Limited provided an exploration update on its Picachos project in Sinaloa. The company is preparing a fully financed 5,000m drilling program in approximately 40 holes targeting four high grade Au-Ag veins found within the Colomeca vein system, comprised of several sub-parallel veins over a 1.5km wide zone. In addition, Brigadier is also planning approximately 3 line-km of trenching across several historic sample sites to follow-up anomalies identified by the historic work to define drill targets. “Brigadier intends to have drills turning by the third week of September and look forward to providing updates as results become available.”
  • Oroco Resource Corp., initiated a 3D resistivity and IP survey at its Santo Tomas project in Sinaloa. The survey is targeted to cover an area of approximately 10 km of the property which will encompass the mineralized South Zone, North Zone and the Brasiles Zone at Santo Tomas. The survey comprises a dipole – pole – dipole arrangement and targets the layout of some 26 Rx (receiver) lines spaced at 200m.
  • Canasil Resources Inc., released results from 2 initial drill holes collared at its Nora project in Durango. Hole NCR-20-01tested the Candy vein and intersected 1.6 g/t Au, 440 g/t Ag, 2.51% Cu, 2.1% Pb, and 0.61% Zn over 0.29m, while hole NCR-20-02 encountered 0.72 g/t Au, 21 g/t Ag, 0.1% Cu, 0.2% Pb, and 0.5% Zn over 4.8m, including 1.81 g/t Au, 62 g/t Ag, 0.08% Cu, 0.1% Pb, and 0.61% Zn over 0.38m. Drill hole NRC-20-03, targeted below NRC-20-02 has been completed to a depth of 302 metres, and NRC-20-04 is in progress, targeted below NRC-20-01 as planned.

ON MINING

  • Excellon Resources Inc., provided an operation update on its La Platosa mine in Durango. The company achieved a strong production after resuming mining and milling activities in mid-June, 2020. In July, 2020 the company mined and processed 7,044 and 7,408 tonnes respectively with grades of 528 g/t Ag, 5.8% Pb, and 7.7% Zn at metallurgical recoveries of 92.4%, 85.7%, and 77.6% respectively, to produce 116.3K Oz Ag, 972K Lb Pb, and 7K Lb Zn (198.5K Oz AgEq).
  • Consolidated Zinc Ltd., reported H1, 2020 production and financial results from its Plomosas mine in Chihuahua. The company mined in H1, 2020, over 12,332 tonnes of 16.4% Zn and 8.6% Pb to produce 2.25M Lb of payable Zn, 546.7K Lb of payable Pb, and 455 Oz of payable Ag sold in Zn and Pb concentrates. Consolidated Zinc reported a net loss after income tax of USD $2.19M, a profit of USD $0.56M, total assets of USD $4.14M, and total liabilities of USD $3.79M. Total cash reported was USD $0.77M and borrowings were USD $0.98M.

ON FINANCING

  • Mag Silver Corp., completed its previously announced at the market equity program for gross and net proceeds of USD $50M and USD $48.62M respectively. Net proceeds will be used to fund the completion of construction of the Juanicipio project, with any reminder to fund further exploration of Juanicipio and other projects, and for working capital and general corporate purposes.
  • Comet Resources Limited announced that it will be conducting a placement for gross proceeds of $2M. The offer under the plan will raise a maximum of $500K on the terms and conditions contained in this letter. In conjunction with the placement, this will provide the company with additional funds of up to $2.5M. Part of the funds raised will be used for ongoing exploration at Santa Teresa project in Baja California as well as for the payment of costs associated with the plan and placement and general working capital.
  • Excellon Resources Inc., completed its share consolidation in connection with its plan to trade on the NYSE American LLC, which is now effective. Excellon’s shares are expected to commence trading on the NYSE American by the end of September under the ticker symbol “EXN” (La Platosa mine, Durango).
  • Monarca Minerals Inc., completed its previously announced shares for debt transaction to settle an aggregate of $301,324 owing to certain officers, directors and services providers of the company. The amount settled includes $194K out of $342K of accrued directors, management, and consulting fees (Tejamen property, Durango).
  • Sable Resources Ltd., closed its previously announced private placement for total gross proceeds of approximately $9.9M. Net proceeds will be used for exploration and general corporate and working capital purposes (Margarita and Vinata project, Chihuahua).

ON RESOURCES AND DEVELOPMENT

  • Bacanora Lithium plc., provided an operational update of its Sonora Lithium project in Sonora. The pilot plant has completed the bulk sampling required for the Sonora plant, the same that were submitted to relevant partners in China and USA for optimization of the final design. GR Engineer completed its concentrator design work and will integrate this into the overall project scope, and its JV partner Ganfeng Lithium completed its flow sheet design testwork for the production of battery grade lithium from the samples provided by the pilot plant.  Bacanora therefore remains on schedule to commence initial site works at Sonora in H1 2021, subject to completion of financing, which would enable commencement of production at the plant in 2023.
  • Capstone Mining Corp., provided updated proven and probable mineral reserves and positive results of an updated technical report for its Cozamin mine in Zacatecas. Proven and probable reserves as of April 30, 2020 are 10,178,000 tones of 1.79% Cu, 41 g/t Ag , o.36% Zn and 0.05% Pb for a total of 2M Lb Cu, 13.5M Oz Ag, 79.4M Lb Zn, and 11M Lb Pb. Capstone updated life of mine plan with annual average Cu and Ag production increased by 70% to 61.4M Lb Cu and 43% to 1.75M Oz Ag respectively. Average annual C1 costs (net of by-products) are expected to move 23% lower to $0.67 per payable Lb Cu. It also announced that ramp-up to 1.35 million tonnes milled per annum (“tpa”) by Q2 2021 is on time and budget, that tailings management transformation activities are progressing on schedule, and that a PFS of an underground paste backfill system is underway. Finally, it also reported that a new step-out hole drill program totalling 80 holes targeting the down dip extension to the southeast of both Vein 10 and Vein 20 is underway. Hole S499 and S503 intersected high grade polymetallic copper, zinc, lead and silver in a 650-meter step-out from the current mineral resource. A 1 km exploration drift is being considered to provide a drilling platform to target this new area.

ON DEALS AND CORPORATE ISSUES

  • Excellon Resources Inc., announced that it has applied to list its issued and outstanding common shares on the New York Stock Exchange (NYSE) American, LLC., under the ticker symbol “EXN” (La Platosa mine, Durango).
  • Mithril Resources Limited announced that its CEO was appointed as Managing Director (Copalquin project, Durango).
  • Sonoro Metals Corp., presented results from its annual general meeting of shareholders and announced it has changed its name from Sonoro Metals Corp., to Sonoro Gold Corp., and will commence to trade with the new ticker symbol “SGO” (Cerro Caliche project, Sonora).
  • Alien Metals Ltd., entered into an exclusivity agreement with Capstone Mining Corp., in respect of the potential farm out of an interest in its Donovan 2 Copper-Gold project in Zacatecas. The agreement provides for a 45-day period for Capstone to undertake due diligence to their satisfaction. If the parties decide to move into a definitive agreement, then Capstone could earn-in to the Donovan 2 property through a combination of carried expenditures and cash payments.
  • Almaden Minerals Ltd., announced the decision of the Second District Court in Puebla in respect of its environmental permit application for its Ixtaca project in Puebla. “The company challenged an October, 2019 decision by Mexico’s environmental authority (“SEMARNAT”) to suspend its review of the Ixtaca project’s environmental permit application (“MIA”) until resolution of legal proceedings (the “Amparo”) regarding certain of the Company’s mineral concessions which encompass the area of the Ixtaca project. In its recent decision, the Court dismissed the “incident” principally on the basis that SEMARNAT is not a party to the Amparo. Furthermore, in a related communication with SEMARNAT, the Court also confirmed that the existence of the Amparo does not prevent SEMARNAT from resolving the MIA permit application and that SEMARNAT is free to act within its jurisdiction and authority in respect of the MIA review. The Ministry of the Economy, the Mining Authorities, the Congress, Senate, and the Office of the Presidency all made submissions to the Court as part of this decision. The Company awaits a response from SEMARNAT to the Court decision”.
  • Argonaut Gold Inc., entered into a definitive agreement for the sale of its Ana Paula property in Guerrero. Total consideration to Argonaut includes USD $30M on closing, CAD $10M upon the announcement of commencement of construction, a 1% NSR, and 9.9% of the outstanding common shares of the acquiring company, which will be formed by a business combination of 1252201 BC Ltd (“AP Mining”) and Pinehurst Capital II Inc. (“Pinehurst”), creating a new publicly traded gold development company (the “Resulting Issuer”).
  • Consolidated Zinc Limited secured an agreement with Industrias Peñoles to sale under favorable terms the 100% of the Zn concentrate produced by the company in 2021 at its Plomosas mine in Chihuahua.
  • Newmont Corporation appointed Susan N Story to its board of directors and achieves gender parity for non-executive directors (Peñasquito mine, Zacatecas).
  • Southern Silver Exploration Corp., presented results from its annual general meeting of shareholders. In this meeting shareholders re-elected directors and approved the purchase of Electrum Global Holdings L.P.’s 60% ownership interest in Southern Silver Holdings Limited and indirect 60% interest in the Cerro Las Minitas property in Durango.

ON SOCIAL RESPONSIBILITY

  • First Majestic Silver Corp., invested during 2019, USD $3.8M in local communities where it operates, destined to health programs, infrastructure, access to water, and youth projects. In 2019, First Majestic planted 105,730 native plants through reforestation initiatives, and also recycled more than 80% of the water used in its operations. At the end of 2019, First Majestic employed a total of 4,681 people: 3,305 employees and 1,376 contractors, distributed in the six operating mines of the company: San Dimas, and La Parrilla, in Durango; La Encantada, in Coahuila; Santa Elena, in Sonora; Del Toro, in Zacatecas, and San Martín, in Jalisco.
  • Fresnillo plc, continued donating personal equipment to prevent infections by COVID-19 in Caborca, Sonora. The company delivered 8,000 face masks as part of a social program to raise awareness among the population about the importance of health care to avoid the spread of the virus.
  • The Municipal President of Fresnillo, Zacatecas delivered the first stage of the rainwater collector with an investment of MXP $6M from the Mining Fund. This work has 180 linear meters and has favored the inhabitants of the El Vergel subdivision and neighboring colonies since it is channeled to rainwater and prevents floods.
  • The Municipal President of Cuencame, Durango announced that MXP $16.6M were invested in the construction of domes and paved street, installation of electrical networks, potable water and drainage in several communities in Cuencame, Durango. In addition, she also reported that more than two thousand direct and indirect jobs were generated.
  • Grupo Mexico S.A.B de C.V., offered more than 130 weekly workshops via social networks generating content for the community with a focus on prevention, healthy distance and stay at home, as well as implementation of workshops in the areas of education and culture, health and safety, environment and sports.
  • The Peñoles nursery garden continues donating trees to people seeking to expand the green folder in their home, plaza or a larger space for the community. Goal of the program is to reforest public spaces in order to maintain an ecological balance. The company also is carrying out cleaning and disinfection of classrooms, furniture and teaching materials at a Federal Middle School #2.
  • Minera Media Luna (Torex Gold Resource) improved public spaces in the Atzcala community in Guerrero. Among the activities carried out were the pruning of trees, painting of sidewalks and fences, construction of concrete tops, cleaning of planters, reforestation, cleaning in the elementary school and kindergarten, placement of fencing in the field, replacement of lights and other activities.

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, stibnite in a fine grained quartz vein from an epithermal vein system in a prospect in San Luis Potosi, Mexico.  Photo by Miguel A Heredia

 

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

By Jorge Cirett

During the 36th week of the year (August 31st to September 6th, 2020), at least 22 press releases were announced by companies working in Mexico. The dominant news on the country relating to the mining industry during the week, was the cancellation of the Sub Secretary of Mining (created during the last presidential term), headed by Francisco Quiroga, who had gained the trust of the enterprises and organizations of the industry by his relentless and hands-on daily effort to help better the mining industry in Mexico. He will be missed, unlike his predecessor. ON MEXICO ISSUES, the Sub Secretary of Mining was cancelled, its role absorbed within the Economy Secretary; loud complaints from the mining industry organizations followed, to fall on deaf ears. Pending investments in mining for the near future of US$1991 M. The Sonora Mining Fund Committee approved the investment of US$3.5 M on an aqueduct. FIFOMI has US$164 M in current credits to the mining industry. The Mining Fund is gone, for the purposes it was created for. (This is a measure taken by the actual federal government against the opinion of all mining enterprises and organizations. In my personal point of view, it opens the way to the use of the funds in a very centralized manner, same that can be exploited for political gains by those in power. There was just no need for this change). The very Mexican “illegal mine blockade roulette” now struck Equinox’s Los Filos mine in Guerrero. ON EXPLORATION, in Baja, Comet Resources updated on its Santa Teresa property. In Sonora, Redstar Gold updated on its Cumaro project. In Sinaloa, Viszla Resources released drilling results at Panuco. In Veracruz, Azucar Minerals released drilling results from El Cobre.  ON MINING, Santacruz Silver reported second quarter 2020 results. Equinox Gold’s Los Filos mine in Guerrero is affected by an illegal blockade. ON FINANCING, seven companies made announcements regarding the opening or closing of financing rounds: Southern Silver Exploration ($456 K), Barksdale Resources ($6.3 M), GoGold Resources (C$30 M), Silver Dollar Resources ($10.5 M), Inomin Mines ($400 K), Americas Gold and Silver (C$39.4 M), Alien Metals (£1.25 M). Gold79 Mines, Golden Tag Resources and Redstar Gold granted stock options to officers, directors and consultants. ON RESOURCES AND DEVELOPMENT, Silver Bull Resources updated on the legal battle and an illegal blockade at its Sierra Mojada project in Coahuila. ON DEALS AND CORPORATE ISSUES, Odyssey Marine Exploration received funds for the legal battle to obtain the government permit to mine its Exploraciones Oceánicas phosphate project offshore Baja California Sur. Tarachi Gold acquired the Juliana group of properties, increasing the size of its Tarachi property to 3,708 hectares. Inomin Mines executed the agreement on the acquisition of the La Gitana and Peña Blanca properties in Oaxaca. ON SOCIAL RESPONSIBILITY. Peñasquito, First Majestic, Minera San Javier, Alamos Gold and SilverCrest informed on donations, community involvement and safety measures on the areas near their operations.

ON MEXICO ISSUES

  • Francisco Quiroga, in his last day as Sub-Secretary of Mining, called for the AIMMGM (Asociación de Ingenieros Mineros, Metalurgistas y Geólogos de México) to play a leading role in the transformation of the industry and its relationship with the public sector.
  • The AIMMGM installed the newly elected board for the 2020-2022 period.
  • The Secretaría de Economía announced the cancellation of the Mining Sub-Secretary, onward from September 1st, 2020.
  • The cancellation of the Mining Sub-Secretary by the federal government brought loud complaints from companies and organisms within the industry (not that these complaints are to be attended to). The Cámara Minera de México (CAMIMEX), the Asociación de Ingenieros Mineros, Metalurgistas y Geólogos de México (AIMMGM), the Mining Task Force of the Cámara de Comercio del Canadá en México, the Sonora, Chihuahua, Guerrero, Sinaloa and Zacatecas Mining clusters, the Colegio de Ingenieros de Minas, Metalurgistas y Geólogos de México (CIMMGM) and the organization Mujeres en la Minería (WIM Mexico) extended its congratulations to Francisco Quiroga, departing Mining Sub-Secretary and expressed the profound disagreement for the disappearance of the Sub Secretary of Mining.   
  • Camimex (Cámara Minera de México) informed Mexico has a list of projects that add up to $1,991 M dollars in programmed investment. Amongst these are the Campo Morado mine in Guerrero, La Yaqui Grande in Sonora, as well as the Orysivo project in Chihuahua, the Centauro Profundo project in Sonora and the Media Luna project in Guerrero. Mexico had a production peak of 123,364 kg of gold in 2015, same that has declined to 73,451 kg in 2019.
  • The Mining Fund Sonora Committee approved the investment of MX$75 M pesos (US$3.5 M) for the construction of the Macoyahui-Alamos aqueduct. The project includes 24.5 Km of PVC tubing and five pumping stations.
  • INEGI informed the mining activity is resuming after the COVID lockdown. Sulphur, iron,, lead, gold, copper, silver, fluorite are among the commodities that have seen their production significantly increased. In January 2020 the industry generated 381,456 direct jobs and more than 2 M indirect jobs, according to the IMSS.
  • Request for the Mining Sub Secretary to stay in Chihuahua by Omar Bazán, deputy, and the Chihuahua Mining Cluster.
  • The Fideicomiso de Fomento Minero (FIFOMI) has $3,530 M pesos (US$164 M) on current credits to the mining sector.
  • The Mining Fund is gone, for the purposes it was created for. Graciela Márquez, Economy Secretary confirmed the resources no longer are going to be distributed among mining municipalities, but through different agreements with government organisms and federal programs to help mining communities.
  • Graciela Márquez, Economy Secretary, stated the disappearance of the Mining Sub-Secretary is not to affect the mining industry as all relevant structures stay in place (We beg to disagree).

ON EXPLORATION

  • Radius Gold Inc. informed on exploration at its Amalia and Plata Verde projects in Chihuahua. At Amalia, “phase 4 drilling funded by JV partner Pan American Silver remains on stand-by due to COVID-19. Semarnat, the permitting agency in Chihuahua, has returned to work on a limited scale and Pan American has recently provided updated information requested by Semarnat”. At Plata Verde, there is advance in the signing of agreements to expand the property package. “The next phase of field work will consist of geophysical programs to identify feeder systems and expansions of the known mineralization under the thin (>100m) cover volcanics”.
  • Redstar Gold Corp. announced its Cumaro project in Sonora is adjacent to SilverCrest’s Picacho property. “Previous drilling on SilverCrest Metals’ Picacho vein, two kilometres north of the Cumaro property, returned intersections including 13.9 metres at 16.22 grams per tonne (g/t) gold and 33.9 g/t silver in hole PDD07-013, and 4.1 metres at 3.86 g/t gold and 35.0 g/t silver…” in other hole on the Dos Amigos vein. The company believes there is a down-thrown block on the eastern side of the property, where the extensions of the veins exposed on the western side could be present on a much shallower level.
  • Comet Resources Ltd. Informed in a corporate presentation on its Santa Teresa property in Baja California. Santa Teresa is a high-grade mesothermal lode gold deposit (ie.- orogenic gold) with an existing NI 43-101 inferred resource of 64 K Oz Au capped at 20 gpt Au, with a cutoff grade of 4 gpt Au and average grade of 8 gpt Au. Historical drilling has intersected quartz veins grading up to 958 gpt Au over 1 m, and multiple other drill results above 30 gpt Au. The deposit is open along strike and at depth.
  • Vizsla Resources Corp. announced a fourth new discovery at its Panuco project in Sinaloa. The first four drill holes at the Tajitos vein have been completed on the Cinco Señores vein corridor. Highlighted intercepts from the three first drill holes comprise 4.5 m @ 1,200 gpt Ag, 7.29 gpt Au (including 1.15 m @ 2,210 gpt Ag, 16.13 gpt Au); 1.15 m @ 812 gpt Ag, 4.59 gpt Au. ”The Tajitos vein zone is composed of a quartz breccia vein with an early white locally banded quartz supporting andesite lithic clasts, followed by a later white to greyish quartz supporting brecciated clasts of earlier white quartz veins. This zone was then cut by a later white to clear quartz vein with local dark bands or patches of fine-grained sulphides that is cutting a zone of quartz psuedomorphs after bladed calcite and pink rhodochrosite. The better grades are in the earlier breccias associated with dark bands or dark patches of very fine-grained disseminated sulphides. This vein zone is hosted in a package of andesite flows and tuffs”.
  • Azucar Minerals Ltd. released drilling results from its El Cobre project in Veracruz. The holes in the Primo target returned 23.75 m  @ 0.22 gpt Au, 0.08% Cu; 8.50 m @ 0.71 gpt Au, 0.24% Cu; 123.50 m @ 0.14 gpt Au, 0.14% Cu. Azucar is currently preparing its facilities  and implementing the health protocols required to enable a safe return to work.

ON MINING

  • Santacruz Silver Mining Ltd. Reported operating and financial results for the second quarter 2020. At Veta Grande in Zacatecas, 37.1 K tonnes were milled to produce 204.6 K Oz AgEq at cash cost $17.68 per Oz AgEq and an AISC of $19.70 per Oz AgEq. At Rosario in San Luis Potosi, 20.8 K tonnes were milled to produce 141.4 K Oz AgEq at cash cost $14.23 per Oz AgEq and an AISC of $15.59 per Oz AgEq.
  • Equinox Gold Corp. reports that “mining activities at its Los Filos mine in Mexico have been suspended since September 3, 2020 as the result of an illegal road blockade by members of the nearby Carrizalillo community. The individuals allege non-compliance with the community social collaboration agreement signed in 2019. The mine remains staffed with a reduced workforce to maintain appropriate safety, security and environmental systems. Equinox Gold is in active discussions with the Carrizalillo community leaders to resolve the issues”.

ON FINANCING

  • Gold79 Mines Ltd. Approved the granting of 6 M stock options to officers, directors and consultants of the company (Taviche, Oaxaca).
  • Southern Silver Exploration Corp. plans to conduct a non-brokered private placement to raise $456 K (Cerro Las Minitas, Durango).
  • Golden Tag Resources Ltd. Granted 9.9 M incentive stock options to management and directors (San Diego, Durango).
  • Barksdale Resources Corp. increased the size of its non-brokered private placement financing for gross proceeds of up to $6.3 M (San Javier, Sonora).
  • GoGold Resources Inc. entered into an agreement on a bought deal basis with a syndicate of underwriters for the acquisition of shares for gross proceeds of C$30 M (Los Ricos, Jalisco).
  • Silver Dollar Resources Inc. has arranged a non-brokered private placement to raise up to $10.5 M (La Joya, Durango).
  • Redstar Gold Corp. announced the granting of 20.73 M stock options to directors, officers and consultants of the company (Cumaro, Oso Negro and La Lola, Sonora).
  • Inomin Mines Inc. announced a non-brokered private placement to raise up to $400 K in gross profits (La Gitana, Oaxaca).
  • Americas Gold and Silver Corp. closed its previously announced and up-sized bought deal financing for aggregate gross proceeds of C$39.4 M (Cosalá, Sinaloa).
  • Alien Metals Ltd. announced that it has conditionally raised £1.25 M (Los Campos and Los Celsos, Zacatecas).

ON RESOURCES AND DEVELOPMENT

  • Silver Bull Resources Inc. updated on its Sierra Mojada project in Coahuila. Sociedad Cooperativa de Exploración Minera Mineros Norteños, S.C.L. (Mineros Norteños), the group which is illegally blocking the Sierra Mojada project, has filed an appeal in the recently reopened Mexican courts to try and overturn a favorable ruling for Silver Bull on their lawsuit against the Company filed in 2014. The company sees the whole lawsuit as frivolous (looking for payment of an NSR on production that has not taken place), and explains Mineros Norteños has lost already three rulings, and Silver Bull expects a final ruling on the case, which cannot be appealed by Mineros Norteños, to be handed down from the courts within the next 6 months. Mineros Norteños has illegally blocked access to the project since September 2019.

ON DEALS AND CORPORATE ISSUES

  • Odyssey Marine Exploration Inc. had a financing transaction that provides the company with $11.3 M, a portion of which will be used to fund operating expenses of the “Exploraciones Oceánicas” phosphate project offshore Baja California Sur. “The investor group was anchored by Odyssey’s existing NAFTA funding partner, Poplar Grove LLC. Poplar Grove is managed by Drumcliffe LLC, a private investment management firm that oversees high-value litigation funding portfolios of over $14 billion in claims”.   
  • Telson Mining Corp. announced the resignation from its board of directors by Remigio Martínez Muller.
  • Tarachi Gold Corp. entered into an arm’s length option agreement with Exploradora Cobre de Bacanoras S. de R.L. de C.V. to acquire 100% interest in the group of mining concessions known as the Juliana, Juliana No.1, Juliana No.2 and Las Morita mining concessions covering 1,140 hectares in Sonora. “Tarachi’s projects now consist of the San Javier, Pretoria, Chivitas, Jabali, Juliana, Texana and Tarachi concessions for a total of 3,708 ha in the Mulatos District. The deal involves the payment of $40 K on the execution date, $30 K on six months, $30 K on 12 months, $30 K on 18 months, $60 K on 24 months, $60 K on 30 months, $150 K on 36 months, $150 K on 42 months, $150 K on 48 months, $700 K on 54 months and $700 K on 60 months, and the issue of 4 M common shares, 400 K of those on the execution date, 1 M shares on 12 months, 1 M shares on 24 months and 1.5 M shares on 26 months. The transfer of the concessions is subject to a 3% NSR from production, with the company having the right to buy at any time 1/3 of the NSR for $1 M.
  • Inomin Mines Inc. announced the execution of the agreement to acquire the La Gitana and Peña Blanca projects in Oaxaca. Inomin is acquiring 100% interest on both properties for 1 M common shares of Inomin, $25 K cash and the grant of 1.5 % NSR on the Peña Blanca property, of which 0.5% can be bought at any time for $1 M.

ON SOCIAL RESPONSIBILITY

  • Peñasquito continues to apply bio-security protocols. Up to date 27,359 fast test have been applied in the facilities and neighboring communities, resulting in six confirmed cases.
  • First Majestic Silver Corp. invested during 2019 US$3.8 M in local community, health youth programs, infrastructure and access to clean water. Over 25,600 medical consultations were provided in local communities. Planted 105,730 native plant species through reforestation initiatives .
  • Minera San Javier (NewGold) donated personal medical equipment to hospitals in San Luis Potosí, and personal medical equipment and sanitization supplies to the Cerro San Pedro municipality health clinics. The company continues to deliver food pantries to persons in need in Planta del Carmen, La Zapatilla, Monte Caldera, Cuesta de Campa, Calderón, Portezuelo and Cerro San Pedro.
  • Alamos Gold donated medical equipment and a mobile unit to the Sahuaripa DIF (Desarrollo Integral de la Familia) in Sonora.
  • SilverCrest’s Las Chispas project has accumulated 600 days without accidents in Sonora.

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

On the image below: The whitish ledge from left to center is a silicified paleo water table in the Mexican Altiplano. Picture by Jorge Cirett.

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

Phyllic alteration

By Miguel A Heredia

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

ON MEXICO ISSUES

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

ON EXPLORATION

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

ON MINING

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

ON FINANCING

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

ON RESOURCES AND DEVELOPMENT

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

ON DEALS AND CORPORATE ISSUES

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

ON SOCIAL RESPONSIBILITY

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

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

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

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

 

Argillic alteration

By Miguel A Heredia

During the twenty nine week of the year (July 13th to July 19th, 2020), at least 47 press releases were announced by companies working in Mexico, with ten communicating production and financial results, nine commenting on Mexican issues, eight announcing financial rounds, seven informing on exploration results, five disclosing deals and corporate issues, four reporting on resources and developments, and four discussing on social issues. ON MEXICO ISSUES, Claudia Pavlovich and Hector Astudillo, governors of Sonora and Guerrero respectively, asked the Ministry of Economy to reconsider returning to the support that was granted to the municipalities with the Mining Fund. Jose Ignacio Peralta Sanchez, governor of Colima state requested the reactivation of The Mining Fund. Karen Flores, Director of the Mexican Mining Chamber (CAMIMEX), stated that 16% of the workforce in the Mexican mining industry is occupied by women. The Secretary of Economic Development of Michoacan, Jesus Melgoza Velazquez, announced that the regional committee of the Mining Fund for the Development of Mining Areas was reactivated after approximately two years.  Fernando Alanis, president of the Mexican Mining Chamber (CAMIMEX) declared that the mining sector in the country is at risk of contracting if new concessions are not granted.  Torex Gold plans additional investment of USD $ 500M in Mexico but asked the government for certainty. The Ministry of Labor and Social Security (STPS) reported that it is in preparation for the next stage of the rescue of the miners who were trapped in the Pasta de Conchos mine in Coahuila 14 years ago. The Zacatecas Mining Cluster (Clusmin) and its members started the construction of the Compatible Mining Center in Zacatecas. Minera Esperanza Silver (Alamos Gold Inc.) reaffirmed its commitment with Mexico. ON EXPLORATION, In Sonora, Colibri concluded its current phase of field work at its Evelyn project and planed the next phase trenching program, Ridgestone reported drill results from the three first holes collared at its Rebeico project, Minaurum commenced phase II drilling at its Alamos Silver project, and Silver Viper reported results from four holes drilled at its La Virginia project. In Chihuahua, Kootenay released drill results from its Columba project, and Consolidated Zinc provided an exploration update on its Potrero and Don Lucas prospects.  In Sinaloa, Vizsla expanded the exploration program at its Panuco project and added a third drill rig.  ON MINING, Aura, Avino, Consolidated Zinc, First Majestic, Fortuna, GoGold, Gold Resource, McEwen, Santacruz and Sierra Metals reported Q2, 2020 production results from their Mexican operations. ON FINANCING, Aztec Minerals closed the first tranche of its private placement for gross proceeds of CAD $2.12M (Cervantes project, Sonora). Silver Tiger announced a plan to conduct a non-brokered private placement for gross proceeds of up to $11M (El Tigre project, Sonora). Tarachi Gold announced it intends to complete a non-brokered private placement for net proceed of up to CAD $5M (Tarachi project, Sonora).  Xtierra closed its previously announced private placement for gross proceeds of $1M (Bilbao project, Zacatecas). Mammoth announced lifting of management cease trade order and issuance of shares for debt and incentive options (Tenoriba project, Chihuahua). Mexus announced that the company satisfied a $57K note payable by way of conversion (Santa Elena mine, Sonora). Telson announced that further to its application for a management cease trade order, which was granted by the British Columbia Securities Commission, it has been required to provide bi-weekly status reports (Tahuehueto project, Durango). One World Lithium announced that it will continue providing bi-weekly updates following a management cease trader order granted for the British Columbia Securities Commission (Salar del Diablo project, Baja California Norte). ON RESOURCES AND DEVELOPMENT, Endeavour announced a final PFS on its Terronera mine in Jalisco. GR Silver resumed the surface drilling at its Plomosas project in Sinaloa.  Prime Mining provided an update regarding the initial phase of exploration planned on its Los Reyes project in Sinaloa. Minera Alamos provided mid-year construction update at its Santana project in Sonora.  ON DEALS AND CORPORATE ISSUES, Carlyle entered in an option agreement with Riverside to purchase 100% interest in the Cecilia project in Sonora.  Golden Minerals signed a letter of intent with Fabled Copper to sell its Santa Maria project in Chihuahua. Minera Alamos announced the appointment of a new member to its board of directors (Santana project, Sonora). Oroco announced the appointment of a director to join to its board of directors (Santo Tomas project, Sinaloa). ON SOCIAL RESPONSIBILITY, Fresnillo plc continues to implement sanitary measures in its work centers and support the communities surrounding the operations. Grupo Peñoles supported the donation of bed-chairs for Coahuila hospitals. MSX (New Gold Inc.) donated pantries to vulnerable population in the communities of Cerro de San Pedro, San Luis Potosi, as well as personal protection equipment to hospitals. Camino Rojo S.A. de C.V. (Orla Mining Ltd.) continued helping communities and government agencies where it operates to mitigate the risk of the COVID-19 pandemic.

 ON MEXICO ISSUES

  • Claudia Pavlovich and Hector Astudillo, governors of Sonora and Guerrero respectively, asked the Ministry of Economy to reconsider returning to the support that was granted to the municipalities with the Mining Fund. The governor of Guerrero said that the Mining Fund can be used to reactivate the economy in the most affected regions by the unemployment of the industry due to the COVID-19 pandemic, as well as to attend to the population affected by the virus, as well as for medical care and medicines. The governor of Sonora said that this support marked a before and after in the municipalities where the resources were applied, and stated that the Mining Fund should be reconsidered to promote the development of the municipalities. In addition, governors of Coahuila, Durango and Chihuahua highlighted the importance of mining activity in their states.
  • José Ignacio Peralta Sanchez, governor of Colima state asked the Undersecretary of Mining, Francisco Jose Quiroga Fernandez, to resume Mining Funds pending from some years ago, since due to the current economic conditions is when this resource is most required. The governor stressed that mining is an engine for the entity’s economy, since it has important productive chains, which makes it a strategic sector.
  • Karen Flores, Director of the Mexican Mining Chamber (CAMIMEX), stated that 16% of the workforce in the Mexican mining industry is occupied by women. She argued that although it seems a minority figure, its increase has been exponential. She also commented that Mexican mining adheres to the agreements of the 2030 agenda of the United Nations (UN) in two of its main objectives, such as the reduction of inequality and gender equity.
  • The Secretary of Economic Development of Michoacan, Jesus Melgoza Velazquez, announced that the regional committee of the Mining Fund for the Development of Mining Areas was reactivated after approximately two years. The Mining Fund will allow physical infrastructure works to be carried out in municipalities with mining activity such as Tlalpujahua, Tzitzio, Tuzantla, Huetamo, Villa Madero, La Huacana, Arteaga, Coalcoman, Aquila and Lazaro Cardenas. Since the creation of the regional committee of the mining fund in 2014, MXP $171M have been earmarked for the realization of 61 projects such as paving works for streets and roads, construction of sanitary landfills, infrastructure for the drinking water service, sewerage and water treatment plants, placement of LED street lights, construction of classrooms, roofs and civic patios in schools.
  • Fernando Alanis, president of the Mexican Mining Chamber (CAMIMEX), declared that the mining sector in the country is at risk of contracting if new concessions are not granted. Alanis recalled the importance of mining activity, in order to continue the 370,000 direct jobs and 2-3 millions of indirect jobs generated by this sector, in addition to the fact that for each hectare concessioned under active exploitation, it has a spill of MXP $22,829M. He also said that between 2016 and 2019 the sector paid MXP $174,500M for taxes.
  • Jody Kuzenko, President & CEO of Torex Gold Resources Inc., declared that it plans additional investments of USD $ 500M in Mexico in the construction and commissioning of its Media Luna project in Guerrero but asked the government for certainty in key areas such as in the rule of law and in economic policies to keep its investment projects.
  • The Ministry of Labor and Social Security (STPS), reported that it is in preparation for the next stage of the rescue of the remains of the 65 miners who were trapped in the Pasta de Conchos mine in Coahuila 14 years ago.
  • The Zacatecas Mining Cluster (Clusmin) and its members, started the construction of the Compatible Mining Center in Zacatecas, which is expected to take a year. The Compatible Mining Center aims to promote the development of science, the use of the latest technology and promote innovation for the development of specific purpose applications in the mining environment in the areas of occupational health, physical and psychological safety of workers, and protection of the environment in mining operations in the state of Zacatecas.
  • Minera Esperanza Silver (Alamos Gold Inc.), reaffirmed its commitment with Mexico and highlighted the enormous opportunity for Morelos to be part of the mining sector and the national extractive industry, which is equivalent to 8.3% of industrial GDP. The spokesperson for the Esperanza Silver mining company in Mexico, responsible for the Esperanza project, located in the municipality of Temixco stated that Temixco is shaping up to be one of the mining municipalities in Mexico, where well-being and possibilities for economic and social development are imminent and we must prepare for it.

ON EXPLORATION

  • Colibri Resource Corporation, concluded the current phase of field work and released mapping and sampling results from its Evelyn project in Sonora. A total of 40 grab samples were collected, 9 of which returned grades greater than 0.1 g/t Au, including 4 running more than 1 g/t Au, with a peak value of 8.4 g/t Au at the Cerro Rojo target area. The high-grade samples all consist of quartz vein, veinlets, and quartz breccia with oxidized pyrite and goethite. Colibri plans the next phase on trenching at its Evelyn project.
  • Ridgestone Mining Inc., reported drill results from the three first holes collared at its Rebeico project in Sonora. 1,674m were completed on the New Year Zone to investigate the subsurface extent of significant gold and copper mineralization previously sampled on surface. Significant drill intersections were encountered in hole 20REB013D with 2.13 g/t Au and 1.79% Cu over a width of 16.25m, including 5.25 g/t Au and 1.46% Cu over a width of 4.35m. Holes 20REB014D and 20REB015D intersected 0.25% Cu and 0.19%Cu over a width of 16.2m and 10.9m respectively.
  • Minaurum Gold Inc., commenced phase II drilling program at its Alamos Silver project in Sonora with a minimum of 20,000m. This phase will involve systematically stepping out from discoveries made during Phase I drilling beginning with two drill rigs. “One drill will offset the Europa-Guadalupe discovery hole (AL17-007) which returned 8.25 m grading 1,760 g/t Ag. The other drill will test targets at Promontorio, both along the vein trend and beneath the Promontorio mine where recently acquired historical data revealed holes that returned up to 12.2 m grading 710 g/t Ag”.
  • Silver Viper Minerals Corp., reported results from four new drill holes at La Virginia, two from the El Rubi discovery area and two from the exploration prospect, Macho Libre. Significant drill intersections were encountered in hole LV20-234 collared at El Rubi with 2.05 g/t Au and 11 g/t Ag over a true width (TW) of 4.26m, including 3.59 g/t Au and 16 g(/t Ag over a TW of 1.18m; hole LV20-231M drilled at Macho Libre with 0.63 g/t Au and 24 g/t Ag over a TW of 11.76m, including 1.07 g/t Au and 54 g/t Ag over a TW of 3.60m; and hole LV20-233M drilled at Macho Libre with 1.41 g/t Au and 26 g/t Ag over a TW of 0.90m. Drilling at the El Rubi Discovery Zone continues to expand the system and the rig is being mobilized to a second exploration target named Rubi East.
  • Kootenay Silver Inc., released results from five drill holes collared at its Columba project in Chihuahua. These holes are step outs along strike and to depth from high-grade intercepts previously reported in the Phase-II drill campaign. Significant drill intersections were encountered in hole CDH-20-052 with 199 g/t Ag, 0.08% Pb, and 0.27% Zn over 7.53m, including 279 g/t Ag, 0.11% Pb, and 0.38% Zn over 4.08m, and including 601 g/t Ag, 0.03% Pb, and 0.12% Zn over 1.23m within the F Vein; hole CDH-20-053 with 116 g/t Ag, 0.11% Pb, and 0.24% Zn over 34m, including 175 g/t Ag, 0.17% Pb, 0.37% Zn over 11m, including 496 g/t Ag, 0.55% Pb, and 0.91% Zn over 3m, including 620 g/t Ag, 0.35% Pb, 0.9% Zn over 2m, including 753 g/t Ag, 0.38% Pb, and 1% Zn over 0.95m in F Vein and Hanging Wall structure; and hole CDH-20-054 with 158 g/t Ag, 0.4% Pb, and 0.35% Zn over 5m, including 319 g/t Ag, 0.18% Pb, and 0.5% Zn over 1.8m in F Vein.
  • Consolidated Zinc Limited, provided an exploration update on its Potrero and Don Lucas prospects in Chihuahua and has reserved $600K for exploration field work this year. The company has continued its Au exploration with desktop studies which has established targets and defined a scope of work for immediate commencement of field mapping, sampling and drilling in the current field season.
  • Vizsla Resources Corp., expanded the exploration program at its Panuco project from 14,500m of drilling to 31,100m and added a third rig, which has already commenced to drill. In addition, a fourth drill rig is expected to arrive at the beginning of August. “Third and fourth drill rigs will test exploration targets including the strike extensions of the Napoleon vein corridor, the Tajitos vein, the San Carlos mine at Animas and additional targets along the Cordon del Oro vein corridor”. Drilling is continuing at the high-grade Napoleon discovery with drill hole NP-20-14 in progress. Drilling is testing to the south and down dip of the discovery hole NP-20-02 before moving back north to test vein extension near hole NP-20-07. The updated July-December exploration program is estimated to cost approximately $6.9 M.

 ON MINING

  • Aura Minerals Inc., presented Q2, 2020 production results from its Aranzazu mine in Zacatecas. It produced 5K Oz Au, 91.6K Oz Ag, and 6.2M Lb Cu (14,748 Oz AuEq).
  • Avino Silver & Gold Mines Ltd., announced that it processed 40,190 tonnes of 0.40 g/t Au, 49 g/t Ag and 0.58% Cu at metallurgical recoveries of 79%, 90% and 90% respectively, to produce 404 Oz Au, 50.6K Oz Ag, and 459.8K Lb Cu (158.3K Oz Ag) during the period Q2,2020 from its Avino mine in Durango.
  • Consolidated Zinc Limited, reported that Zn-Pb grades exceeding 25% and 8% respectively are being encountered at the newly opened up Las Espadas underground area while the semi-oxidized ore continues to be mined and delivered at rates of above 15o tonnes per day. At its Aldama plant, it has achieved record availability to July 10 2020 of 94.5% while the recoveries are improving above performance thanks to the effort of the technical team.
  • First Majestic Silver Corp., presented production results for the period Q2, 2020 from their Mexican operations. The table below shows mine by mine production figures:

At the end of Q2, 14 exploration drill rigs were active across the company’s projects consisting of 11 rigs at San Dimas, two rigs at Santa Elena and one rig at La Encantada. The company anticipates adding seven additional rigs in Q3 with a primary focus on the regional potential around Santa Elena.

  • Fortuna Silver Mines Inc., released Q2, 2020 production results from its San Jose mine in Oaxaca. The company milled 160,151 tonnes of 1.42 g/t Au and 220 g/t Ag at metallurgical recoveries of 90.91% and 90.84% respectively to produce 6,654 Oz Au and 1.03M Oz Ag, at cash cost of USD $66/ton.
  • GoGold Resources Inc., presented production results from its Parral Tailings project in Chihuahua for the period Q2, 2020. The company produced 1,914 Oz Au, 270K Oz Ag, and 233K Lb Cu (504.4K Oz AgEq).
  • Gold Resource Corporation, announced preliminary production results from its Oaxaca Mining Unit in Oaxaca. It produced 2,441 Oz Au, 185.3K Oz Ag, 551K Lb Cu, 2.56M Lb Pb, and 6.75M Lb Zn during the period Q2, 2020.
  • McEwen Mining Inc, produced in Q2, 2020 from its El Gallo mine in Sinaloa over 1,900 Oz AuEq from residual leaching of the heap leach pad.
  • Santacruz Silver Mining Ltd., released Q2, 2020 production and financial results from its Mexican operations. At Zimapan, Hidalgo the company milled 139,903 tonnes to produce 829,514 Oz AgEq from which 626,984 were sold, at cash cost per tonne and for Oz AgEq of $48.15 and $16.53 respectively, and AISC of $17.57 per Oz AgEq. At Veta Grande, Zacatecas, it milled 11,095 tonnes to produce 64,870 Oz AgEq from which 47,854 were sold, at cash cost per tonne and for Oz AgEq of $148.36 and $39.54 respectively, and AISC of $46.34 per Oz AgEq. At Rosario, San Luis Potosi, the company milled 17,497 tonnes to produce 73,251 Oz AgEq from which 61,111 were sold, at cash cost per tonne and for Oz AgEq of $62.12 and $23.47 respectively, and AISC of $29.01 per Oz AgEq.
  • Sierra Metals Inc., announced production results from its Bolivar mine in Chihuahua for the period Q2, 2020. Cusi mine remained in care and maintenance throughout Q2, 2020. At Bolivar mine, the company processed 308,951 tonnes of 0.30 g/t Au, 26 g/t Ag, and 0.93% Cu at metallurgical recoveries of 63.79%, 82.80%, and 87.09% respectively, to produce 1,912 Oz Au, 214K Oz Ag, and 5.54M Lb Cu. “At Cusi mine, Chihuahua, development is currently on-going in a zone that will bypass the previously announced area of subsidence and provide access to higher-grade economic ore to provide feed for the mill. Production is expected to recommence after the mine development work is completed and once a process can be implemented at the mine to mitigate risk to employees at the site through a testing and quarantine methodology similar to the company’s other operations”.

 

ON FINANCING

  • Aztec Minerals Corp., closed the first tranche of its private placement for gross proceeds of CAD $2.12M. Part of the gross proceeds will be used to conduct exploration work at its Cervantes project in Sonora, and for general working capital purposes.
  • Silver Tiger Metals Inc., announced a plan to conduct a non-brokered private placement for gross proceeds of up to $11M. Net proceeds will be primarily used for further exploration at its El Tigre project in Sonora.
  • Tarachi Gold Corp., announced it intends to complete a non-brokered private placement for net proceeds of up to CAD $5M. Gross proceeds will be used for exploration of its Tarachi project in Sonora, corporate development, and general working capital purposes.
  • Xtierra Inc., closed its previously announced private placement for gross proceeds of $1M. Nett proceeds will be used to expand and diversify its royalty portfolio into Canada, USA and other mining friendly jurisdictions (Bilbao project, Zacatecas).
  • Mammoth Resources Corp., announced lifting of management cease trade order and issuance of shares for debt and incentive options. The company has yet to file its Q1, 2020 financial statement and Management Discussion & Analysis which were due on June 30, 2020. It expects to file these statements shortly (Tenoriba project, Chihuahua). Mammoth also announced the issuance of 2,503,000 common shares to settle a total of $87,605 in related party and third party debts.
  • Mexus Gold US, announced that the company satisfied a $57K note payable by way of conversion. In addition, Mexus’ audit obligation has been met with the audit expected to be completed in the next 7 days. The audit process was delayed due to the company moving from an exploration company to a production company (Santa Elena mine, Sonora).
  • Telson Mining Corporation, announced that further to its application for a management cease trade order, which was granted by the British Columbia Securities Commission on June 16, 2020, it has been required to provide bi-weekly status reports in accordance with the alternative information guidelines in National Policy 12-203 management cease trade orders, until such time as the company has completed and filed its audited annual financial statements and management’s discussion and analysis in respect of the financial year ended December 31, 2019 (Tahuehueto project, Durango).
  • One World Lithium Inc., announced that it will continue providing bi-weekly updates following a management cease trader order granted for the British Columbia Securities Commission. The company anticipated that the annual filings and the quarterly filings will be filed on or before July 30, 2020 (Salar del Diablo project, Baja California Norte).

ON RESOURCES AND DEVELOPMENT

  • Endeavour Silver Corp., announced a final PFS on its Terronera mine in Jalisco. Base case highlights of the PFS include a NPV 5% of $137M, and IRR of 30%, annual production average of 3M Oz Ag and 32.8K Oz Au (5.9M OZ AgEq) over an initial  10 year mine life, a cash cost and AISC of $0.004 and $2.10 per Oz Ag net of the Au credit respectively, Initial and sustaining capital expenditures of $99M and $60M respectively, a payback period of 2.7 years, and a Pre-Tax and After-Tax undiscounted free cash flow of $315M and $217M respectively.
  • GR Silver Mining Ltd., restarted the 4,500m surface drilling at its Plomosas project in Sinaloa with three drill rigs which is expected to continue through 2020. This drill program is focused on shallow drilling (up to 150m below surface) to expand the known mineralized zones along strike at Plomosas mine and San Juan-La Colorada areas, and follow-up drilling on several new high grade Au-Ag low sulphidation epithermal veins occurrences at the Yecora and El Saltito. Additionally, GR Silver will commence recon work on 11 priority targets identified to contain potential for new discoveries.
  • Prime Mining Corp., provided an update regarding the initial phase of exploration planned on its Los Reyes project in Sinaloa. Focus of the phase 1 program is to upgrade and expand the current mineral resource, test identified zones of high-grade, and advance the understanding of the geology and structural controls of the known deposits of the property. The program is expected to cost approximately $6M and has a targeted completion date of late Q1, 2021.
  • Minera Alamos Inc., provided mid-year construction update at its Santana project in Sonora. The company announced that the heap leach pad area has been cleared of all vegetation and is undergoing contouring ahead of clay placement and the pad liner installation, and that the bypass road construction at either end of the heap leach pad area is underway; reported that the explosive storage & detonator bunkers are awaiting final inspection from the Mexican authorities ahead of the explosive permit issuance; and that the fabrication of the plant carbon columns is complete with work underway for the remaining plant steel structure.

ON DEALS AND CORPORATE ISSUES

  • Carlyle Commodities Corp., entered into an option agreement with Riverside to earn 100% interest in the Cecilia project in Sonora. In order to purchase 100% interest in the Cecilia property, Carlyle has to make aggregate cash payments of $200K over 3 years to Riverside, issue 1.5M common shares, issue 3M non-transferable special warrants, and incur an aggregate of $2.5M in exploration expenditures. Riverside will retain a 2.5% NSR.
  • Golden Minerals Company, signed a letter of intent with Fabled Copper Corp., to sell its Santa Maria project in Chihuahua. The Agreement provides a 10-calendar day period during which Fabled will conduct its due diligence. If Fabled executes the option agreement to acquire 100% interest in Santa Maria property, it has to make a cash payment of USD $0.5M and issue 1M Fabled common shares, USD $1.5M in cash 12 months after closing of the transaction, USD $2M in cash 24 months after closing of the transaction, and upon Fabled exercises the option, it will grant to Golden a 1% NSR.
  • Minera Alamos Inc., announced the appointment of a new member to its board of directors (Santana project, Sonora).
  • Oroco Resource Corp., announced the appointment of a new member to join to its board of directors (Santo Tomas project, Sinaloa).

ON SOCIAL RESPONSIBILITY

  • Fresnillo plc, continues to implement sanitary measures in its work centers and support the communities surrounding its operations in Fresnillo, Saucito, Juanicipio in Fresnillo, Zacatecas, Orisyvo in Uruachic, Chihuahua, Herradura, Noche Buena and Centauro in Caborca, Sonora, San Julian and Cienega in Durango, and in Torreon, Coahuila. . The company donated a last-generation respirator and medical protection equipment such as N-95 respirators, latex gloves, disinfectant gel, disposable gowns, disposable face masks, face masks, and disposable surgical face masks to the General Hospitals of the Mexican Institute of Social Security (IMSS), as well as thousand food pantries. With these actions, Fresnillo plc, belonging to the Mexican corporate Grupo BAL, joins the commitment to health care, with the purpose of guaranteeing the well-being of families and the population that lives in the areas surrounding its operations.
  • Grupo Peñoles, through contributions made by employees to the service of Met-Mex Peñoles, supported the donation of bed-chairs to Coahuila hospital to support those who deserve decent living conditions.
  • MSX (New Gold Inc.), donated pantries to vulnerable population in the communities of Cerro de San Pedro, San Luis Potosi, as well as personal protection equipment to hospitals designated as medical centers to care for patients with COVID-19.
  • Camino Rojo S.A. de C.V. (Orla Mining Ltd.), continued helping communities and government agencies providing support in sanitary filters installed in the border of Zacatecas with the different states; donated pantries during the months of April, May and June containing products from the basic basket which are intended to contribute to the economy of families in the communities of influence, which are San Tiburcio, Berrendo and San Francisco de los Quijano.

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, argillic alteration related to a porphyry copper system in a prospect in Michoacan, Mexico.  Photo by Miguel A Heredia.

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

238 - copia

By Jorge Cirett

During the 28th week of the year (July 6th to July 12th, 2020), at least 31 press releases were announced by companies working in Mexico. Notably, six of those were exploration updates and six more related to financing. ON MEXICO ISSUES, a 12,000 years old ochre mining operation (now submerged) was discovered in the Yucatan peninsula. Avino Silver is the new victim of an illegal blockade. Mining in Mexico has extensive benefits to isolated communities, workers and the government. The Mining Fund rules have been changed, granting more political freedom on its assignment. Mines in the country prepare for production recovery in the second half of 2020.  ON EXPLORATION, in Sonora, Tarachi Gold is mapping and sampling on its Tarachi concessions, announced the finding of a porphyry copper system. In Sinaloa, Brigadier Gold is now exploring the Picachos property; Vizsla Resources released high-grade results on its Panuco property. In Durango, Canasil is now drilling the Nora project.  ON MINING, Argonaut Gold, Endeavour Silver, Great Panther, and Hecla released production results for the Q2, 2020. The figures presented reveal the extent of the Coronavirus emergency lockdown effects.  ON FINANCING, Aura Resources is aiming to raise up to $1 M. Prospero Silver consolidated its shares on a 10 to 1 basis. Mithril Resources intends to raise A$3.5 M. Solaris Resources is to trade in the TSX Venture Exchange. Advance Gold raised $301 K. Vizsla Resources announced a private placement for C$25 M. ON RESOURCES AND DEVELOPMENT, Mexican Gold commenced a 10,000 m drill program at its Las Minas project in Veracruz. GR Silver released more historic drilling results from Plomosas, Sinaloa. GoGold Resources released drilling results from eight more holes at Los Ricos Sur, Jalisco. Golden Minerals is drilling the Rodeo project in Durango. Magna Gold is producing gold from leaching heaps as it prepares to restart mining at the San Francisco mine in Sonora. ON DEALS AND CORPORATE ISSUES, Aura Resources is to change its name to Gold79 Mines. Brigadier Gold entered into a LOI with Minera Camargo to option 100% of the Picachos property in Sinaloa. First Mexican Gold changed its name to QcX Gold. Candente Gold informed the due diligence work on Magellan Acquisition assets in Nayarit has been conducted, results pending. Silver Tiger Metals is sampling historic workings on veins north of the El Tigre mine in Sonora. ON SOCIAL RESPONSIBILITY. Gold Resources, Torex Gold, Fortuna Silver, Fresnillo PLC and Peñoles informed on support activities and investments related to the Coronavirus emergency, community work supplies and/or about the “Day of the Tree”.

ON MEXICO ISSUES

  • Researchers discovered 12,000 years old submerged ochre mines in the Yucatan peninsula. Multiple artifacts and evidences of mining were found in this cave system that was above sea level up to 8,000 years ago.
  • Avino Silver & Gold Mines reports that members from the Mexican mining union have blocked the entrance to the Avino Mine in Durango. The group (that illegally blockades) includes the company’s unionized workers. As a result of the strike at the site, mining and mill processing operations have been halted.
  • Mining in Mexico supports 696 communities in 21 States, and often is the only option to take basic services and jobs to regions far away. The mining sector provides 2.6 percent of the GDP and accounts for 8.2 percent of the industrial output. Salaries at US$779/month (17,521 pesos/month) are 39 percent higher than the national average of $513/month (11,549 pesos/month). There are 379 thousand direct jobs and 2.3 M indirect jobs generated by the industry. Mining paid US$1.91 billion ($43,095 million pesos) in mining concession fees in 2019, and US$7,755 billion ($174,500 million pesos) in taxes in the 2016-2019 period.
  • The Mining Fund rules have been changed. The changes in the rules were published in the Diario Oficial de La Federación (Official Gazette), with the aim of speeding the process to deliver benefits to the communities, according to the document. The changes (which were opposed by the mining community because of the increased political control of the funds) include the elimination of necessary cost-benefit assessment of the projects deemed for social infrastructure, discarding also the obligation to establish coordination agreements in the request and delivery of said funds. The Mining Fund distributes part of the 7.0% of royalties and the 0.5% special tax on precious metal exploitation.
  • Mines in all the country prepare for a production recovery in the second half of 2020, as all companies have scrambled to operate under health safeguards brought by the Coronavirus pandemic.

ON EXPLORATION

  • Advance Gold Corp. provided an update on exploration of its Tabasqueña property in Zacatecas. The exploration that started trying to define epithermal vein mineralization has modified its target to a volcanogenic massive sulfide (VMS). A large chargeability anomaly more than 3 km long was defined in a geophysical survey, and subsequent drilling has intersected disseminated sulfides. Drilling of the disseminated sulfides has returned up to 39 ppb Au, 7 ppm Ag, 351 ppm Cu, 54 ppm Pb, 295 ppm Zn.
  • Brigadier Gold Ltd. entered into a binding letter of intent with Minera Camargo S.A. de C.V. for an option to acquire 100% interest in the Picachos property in Sinaloa. The area has more than 160 known historic underground workings, a recently identified porphyry copper prospect and drill permits in place. “The largest vein system trends northeasterly for seven kilometers along a major fault zone, and host the past-producing San Agustin underground mine”. Regional stream sediment results from a government survey shows several highly anomalous basins with up to 2.6 ppm Au, 299 ppm Cu, 13.9 ppm Mo, 639 ppm Pb and 1,716 ppm Zn.
  • Vizsla Resources Inc. released additional drilling results from the Napoleon vein corridor at the Panuco project in Sinaloa. Highlighted core length drill intercepts comprise 6.0 m @ 66.8 gpt Au, 1,808 gpt Ag (including 3.7 m @ 107.8 gpt Au, 2,889 gpt Ag); 1.78 m @ 2.49 gpt Au, 59 gpt Ag; 3.5 m @ 1.11 gpt Au, 57 gpt Ag; 10.65 m @ 1.34 gpt Au, 134 gpt Ag. The corridor “ hosts two main quartz veins that are separated by some 10 to 20 metres and appears to dip very steeply to sub-vertical. So far it has been mapped along strike for over 2,000 m. Between the two main veins are a series of smaller splay veins with variable orientations, that are related to dilation along the structure under strike slip movement …. Vizsla has an option to acquire 100% of the newly-consolidated 9,386.5 Ha Panuco district in southern Sinaloa, Mexico, near the city of Mazatlán. The option allows for the acquisition of over 75 km of total vein extent, a 500 tpd mill, 35 km of underground mines, tailings facilities, roads, power and permits”.
  • Tarachi Gold Corp. updated on field work activities on the concessions known as the Tarachi project, in Sonora. Detailed mapping and sampling on the La Dura and Virginia areas of the southern Jabali concession is near completion. Preliminary field work on the northern concessions of San Javier, Pretoria and Chivitas was also conducted, finding porphyry copper mineralization that is currently being defined. Environmental applications for drilling are ready for submission.
  • Canasil Resources Inc. started the drill program to test the Candy vein at its Nora project in Durango. Mineralization at Nora is hosted within structurally-controlled epithermal veins, of which the Candy vein is to be tested in a 500 m stretch.

ON MINING

  • Argonaut Gold Inc. announced second quarter production of 31,531 Oz AuEq from its Mexican operations. For the full-year 2020 the company expects to produce 45 K – 50 K Oz AuEq at El Castillo, 62 K – 68 K Oz AuEq at San Agustín (both in Durango) and 53 K – 55 K Oz AuEq at La Colorada (Sonora), for a total production of 160 K – 173 K Oz AuEq in Mexico.
  • Endeavour Silver Corp. presented Q2 2010 production figures, which were down 42% because of the Coronavirus pandemic lockdown. On the bright side, significant true width high-grade intercepts were made near current mine workings, like 1.5 m @ 24.3 gpt Au, 3,217 gpt Ag in Bolañitos, Guanajuato, and 10.0 m @3.25 gpt Au, 1,410 gpt Ag at Guanaceví, Durango.Endeavour Q2 2020 Production1
  • Great Panther Mining Ltd. released second quarter 2020 production results, with figures from its Mexican operations. At Topia, Durango, 7,781 tonnes were processed @ 352 gpt Ag, 0.87 gpt Au, recovering 92.5% Ag, 54.0% Au to produce 81.4 K Oz Ag, 118 Oz Au, 163 tonnes Pb, 223 tonnes Zn. At the Guanajuato mine complex, Guanajuato, 16,755 tonnes were processed @ 133 gpt Ag, 1.80 gpt Au, recovering 85.4% Ag, 84.7% Au, to produce 61 K Oz Ag, 819 Oz Au.
  • Hecla Mining Co. released preliminary production results for the second quarter 2020. At San Sebastian, in Durango, 2 M Oz Ag, 1,331 Oz Au were produced. Mining of oxide material is expected to be completed in the third quarter and milling in the fourth quarter of 2020. The viability of mining the sulfide Hugh Zone continues to be assessed. The mill operated at an average of 528 tpd.

ON FINANCING

  • Aura Resources Inc. initiated a non-brokered private placement aiming to raise between $500 K and $1 M (Taviche, Oaxaca).
  • Prospero Silver Corp. announced that the previously disclosed proposed consolidation of its shares, on a 10 to 1 basis, should have taken effect on July 7, 2020 (Pachuca East, Hidalgo).
  • Mithril Resources Ltd. received firm commitments to raise A$3.5 M through a share placement. Funds are to be used for the maiden drill program at its Coplaquin property in Durango.
  • Solaris Resources Inc. announced its common shares have been approved to list on the TSX Venture Exchange, and expects the trading is to be effective on July 13, 2020 (La Verde, Michoacan).
  • Advance Gold Corp. closed the previously announced private placement, for gross proceeds of $301 K (Tabasqueña, Zacatecas).
  • Vizsla Resources Corp. announced a bought deal private placement with Canaccord Genuity Corp. on behalf of an underwriting syndicate to raise C$25 M (Panuco, Sinaloa).

ON RESOURCES AND DEVELOPMENT

  • Mexican Gold Mining Corp. announced the commencement of a 10,000 m drill program to test all targets at Las Minas, Veracruz. A focus of the drilling is to expand and upgrade the current resource at El Dorado, follow up a previous 5.2 m pyrite rich quartz vein intersection @ 8.94 gpt Au at Cinco Señores, two high-grade vein trends at the Changarro zone, and the Las Minillas skarn occurrence. Other activities in preparation of the preliminary economic assessment (PEA) include the environmental baseline study, an enhanced metallurgy study and a Lidar digital terrain model.
  • GR Silver Mining Ltd. released historic drilling results from the San Juan area at its Plomosas property in Sinaloa. Highlighted true width (tw) intervals comprise 1.5 m @ 2.1 Gpt Au, 8 gpt Ag, 0.8% Pb, 4.1% Zn; 21.8 m @ 1.0 gpt Au, 7 gpt Ag, 1.5% Pb, 1.0% Zn; 2.4 m @ 15.1 gpt Au, 45 gpt Ag, 3.1% Pb, 0.9% Zn; 10.4 m @ 0.7 gpt Au, 7 gpt Ag, 1.6% Pb, 2.3% Zn; 25 m @ 0.3 gpt Au, 26 gpt Ag, 0.6% Pb, 0.8% Zn. These results extend mineralization 600 m on the San Juan system, to a total of 1 km in longitude.
  • GoGold Resources Inc. released the assay results from eight diamond drill holes at the Los Ricos South project in Jalisco. The San Juan, Rascadero, and East vein zones were tested, with highlighted results comprising 8.8 m @ 0.23 gpt Au, 44 gpt Ag at San Juan; 41.0 m @ 1.36 gpt Au, 168 gpt Ag (including 4.0 m @ 11.85 gpt Au, 1,295 gpt Ag); 18.4 m @ 5.18 gpt Au, 500 gpt Ag (including 3.2 m @ 26.2 gpt Au, 2,372 gpt Ag); 12.6 m @ 0.70 gpt Au, 111 gpt Ag at Rascadero; 3.0 m @ 0.33 gpt Au, 40 gpt Ag; 6.1 m @ 0.26 gpt Au, 36 gpt Ag at the East vein.
  • Golden Minerals Co. has commenced drilling at its Rodeo property in Durango. “The upcoming drill program will expand on the historic drilling campaigns that successfully tested multiple gold-quartz veins and breccias of the Rodeo low sulfidation vein system with encouraging results”. Highlighted historic drills results include 28.44 m @ 3.04 gpt Au, 5 gpt Ag; 25.4 m @ 3.79 gpt Au, 4 gpt Ag; 22.35 m @ 3.28 gpt Au, 17 gpt Ag; 28.45 m @ 4.87 m @ 10 gpt Ag31.2 m @ 5.99 gpt Au, 12 gpt Ag; 19.15 m @ 2.58 gpt Au, 5 gpt Ag; 19.2 m @ 1.93 gpt Au, 6 gpt Ag.
  • Magna Gold Corp. provided an operational update on its San Francisco mine in Sonora. “During the first two months of operations, the San Francisco Mine reported sales of US$8.53 million and operating costs of US$3.77 million with an operating margin of US$4.76 million. The Company produced 5,087 ounces of gold and sold 4,977 ounces of gold at an average cost of US$741 per ounce of gold produced and an average cost of $758 per ounce of gold sold. Gold production in May was 2,349 ounces and in June reached 2,738 ounces”. The company intends to complete the pre-feasibility study (PFS) by the end of July, when the processing of new fresh mineralized material is to start. Cash at the end of June at the San Francisco mine was US$8.4 M.

ON DEALS AND CORPORATE ISSUES

  • Aura Resources Inc. expects to change its name to Gold79 Mines Ltd. following the closing of the Territory Metals acquisition (Taviche, Oaxaca).
  • Brigadier Gold Ltd. entered into a binding letter of intent with Minera Camargo S.A. de C.V. for an option to acquire 100% interest in the Picachos property in Sinaloa. To acquire the 3,954 ha property Brigadier has to pay Minera Camargo US$275 K over five years and issue a total of 4 M shares over the same period, and 1 M shares when defining a 350 K Oz Au resource and US$725 K and 1 M shares when a feasibility report is completed, US$2 M upon commercial production commencement and a 2% NSR.
  • First Mexican Gold Corp. announced the change name to QcX Gold Corp. has been made effective on July 6, 2020 (Hilda, Sonora).
  • Candente Gold Corp. informed its due diligence team conducted the visits to the San Dieguito de Arriba processing plant and the historic El Dorado mine in Nayarit. The due diligence visit is part of the Memorandum of understanding (MOU) between Candente and Magellan Acquisition Corp. “The results of these tests along with recommendations for rehabilitation work and projections of ongoing operating expenses will provide the basis for a cost estimate to return the plant to operational status with feed material from the El Dorado Property.” (El Oro, Estado de México).
  • Silver Tiger Metals Inc. commenced underground channel sampling on the high-grade silver veins north of the historic El Tigre mine, in Sonora. “The areas of focus includes the Caleigh vein, the Canon Combination vein (unmined portion of the El Tigre vein), the Protectora vein and the Fundadora vein, all of which are located in the three kilometers of exposed veins at surface north of the historic El Tigre Mine”.

ON SOCIAL RESPONSIBILITY

  • Don David Gold Mines (Gold Resources) informed on the actions taken to work under the Coronavirus pandemic emergency at its operations in Oaxaca. The company supports the Mining Fund with US$8.34 M ($187.7 M pesos) and US$533 K ($12 M pesos) for community deals and infrastructure.
  • Minera Media Luna (Torex Gold) in coordination with local and State authorities released 300 K tilapia alevins (juvenile fish), with a shared company-authorities investment of $44.4 K ($1 M pesos). Also, $39.2 K ($881,764 pesos) were delivered to help the fishermen to modernize their engines and boats.
  • Minera Cuzcatan (Fortuna Silver) announced its plan to plant 13,500 seedlings of native species of the central valleys of Oaxaca in 15 ha of ground. The company has planted already 25,000 seedlings over the last three years on 25 ha.
  • Fresnillo PLC made a recount of the activities that the company has done regarding reforestation as years go by. The Bosque Sustentable Porvenir in Durango was established in 977 ha in association with the Instituto Nacional de Investigaciones Forestales, Agrícolas y Pecuarias. In Juanicipio, Zacatecas, 21,596 plants were relocated, and 14.3 ha were re-forested with 6,787 greenhouse seedlings. At La Herradura, in Sonora, 4,975 plants have been relocated in eight ha, and reforested 2 hectares more. Overall, 1.4 M seedlings have been produced since 2003 by the company.
  • Industrias Peñoles created in Torreon, Coahuila, the 18 ha Bosque del Centenario in 2001, which is now a green space in the city. The company’s greenhouse produces and donates to the community and its members 80,000 seedlings per year.

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

On the image below:   Vapor whiffs on a cool morning in a hot spring field in Queretaro. Picture by Jorge Cirett.

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

Ptygmatic folds

By Miguel A Heredia

During the twenty five week of the year (June 15th to June 21tt, 2020), at least 44 press releases were announced by companies working in Mexico, with twelve disclosing deals and corporate issues, ten announcing financial rounds, six commenting on Mexican issues, five informing on exploration results, five discussing on social issues, four reporting on resources and developments, and two communicating production and financial results, ON MEXICO ISSUES, Minera Fresnillo published a press release regarding the events of last Friday, June 12, when a group of people committed excesses in the vicinity of the Fresnillo mine in Zacatecas. Fresnillo plc announced recruitment of 130 mine workers who labored at the Francisco I Madero mine in Zacatecas.  Bacanora Lithium announced that it is set to start production at its Sonora project in Mexico in 2022, despite COVID-19 interruptions. Mexico has some of the largest undeveloped Ag deposits that have been slowed by economic weakness and price fluctuations. Senator Miguel Angel Lucero Olivas, president of the Mining and Regional Development commission, will present a point of agreement to maintain the Undersecretariat of Mining and, if possible, raise it to the Secretariat level. ON EXPLORATION, In Sonora, Magna Gold announced plans to conduct initial drill programs at its La Pima, San Judas and Veta Tierra projects. In Sinaloa, Vizsla added a second rig at its Panuco project, and Kootenay released drill results from the first core hole collared at its Copalito project. In Durango, Mithril provided an update on its Copalquin project.  In Jalisco, GoGold released drill results from nine holes collared at its Los Ricos South project. ON MINING, Magna Gold provided an update and reported production and financial results for May 2020 from its San Francisco mine in Sonora. Santacruz reported consolidated Q4 and full year 2019 production and financial results from their Mexican mine operations.  ON FINANCING, Aztec Minerals arranged a non-brokered private placement for gross proceeds of CAD $3M (Cervantes project, Sonora). Candelaria Mining entered in a medium term loan facility for USD $9M (Pinos project, Zacatecas).  Mammoth closed a non-brokered private placement for net proceeds of $141,250, which due to demand was increased to $167,475 (Tenoriba project, Chihuahua). Megastar closed a non-brokered private placement for gross proceeds of $ 926,800 (Rama de Oro, Oaxaca). Telson formed a strategic funding alliance with Accendo Banco for USD $12M (Tahuehueto project, Durango). First Mexican closed the first tranche of its previously announced brokered private placement for gross proceeds of $1,235,229.73 (Guadalupe project, Sonora). GR Silver completed a bought deal private placement for gross proceeds of $9,153,000 (Plomosas project, Sinaloa). Magna Gold announced a non-brokered private placement for gross proceeds of up to $7,000,750 (San Francisco mine, Sonora).  Mexus announced that it has paid $178,855.49 to satisfy an outstanding debt obligation (Santa Elena mine, Sonora). One World Lithium approved a temporary management cease trade order which, if granted, will prohibit trading in securities of the Company by certain insiders of the Company, whether direct or indirect (Salar del Diablo project, Baja California Norte). ON RESOURCES AND DEVELOPMENT, Discovery Metals extended higher grade and expanded the drill program at its Cordero project in Chihuahua. Canuc announced that it signed a Memorandum of Understanding (MoU) with M3SH Technologies Inc., to distribute and sell technological solutions (San Javier project, Sonora). Magna Gold provided plans for its San Francisco mine in Sonora, and reported that a mine design has been completed and plans to advance a pilot test program for its Mercedes project in Sonora.  Sierra Metals released drill results and confirmed the discovery of a new high grade Ag area at its Cusi mine in Chihuahua. ON DEALS AND CORPORATE ISSUES, Bacanora Lithium received notification of the off-market transfer of a portion of the shares beneficially owned by Mark Hohnen (Sonora Lithium project, Sonora).  Fortuna Silver reported results from its annual general meeting of shareholders (San Jose mine, Oaxaca). Oroco announced that its shares have been approved to trade on the OTCQB Venture market in USA (Santo Tomas project, Sinaloa). Prime Mining announced key management changes and amended its Los Reyes option agreement in Sinaloa. Silver Dollar signed a letter of intent (LOI) to acquire La Joya project, Durango from First Majestic.  Newmont was ranked top miner in the 100 best corporate citizens list for 2020 (Peñasquito mine, Zacatecas). Torex announced management changes and results from its annual general meeting of shareholders (El Limón-Guajes mine complex, Guerrero). Tarachi Gold retained Digital 257 Technologies Inc., for digital media and capital market communication services and granted stock options to directors, officers and consultants of the compnay (Juliana project, Sonora).  SilverCrest presented results from its annual general meeting of shareholders (Las Chispas project, Sonora). Silver Spruce granted 6.75M stock options to directors and consultants of the company (Pino de Plata project, Chihuahua). ON SOCIAL RESPONSIBILITY, Mining companies operating in Mexico have shown their support in different ways to face the COVID-19 pandemic. The Grupo Mexico Foundation donated preventive kits to the Fire Department, Red Cross and Civil Protection of the Sonoran capital, and delivered health and safety kits to the Taxco, Guerrero health sector.  Minera Media Luna (Torex Gold), delivered preventive material for the COVID-19 health contingency in the municipalities of Cocula and Valerio Trujano, in Guerrero State. Minera Penmont (Fresnillo plc), strengthened security protocols to guarantee safe and contagion-free workspaces for its collaborators. Mina San Dimas of First Majestic received medical equipment to face contingency for COVID-19.

 ON MEXICO ISSUES

  • Minera Fresnillo (Fresnillo plc), published a press release regarding the events of last Friday, June 12, when a group of people committed excesses in the vicinity of the Fresnillo mine in Zacatecas, in which there were arrests of armed persons. The company initiated legal proceedings before the competent authority. Minera Fresnillo reiterated its respect for union autonomy, and the application of the Mexican rule of law, in particular, current labor legislation. The company also pointed out that there is a disinformation campaign promoted by a group of people that has not been conducted by the institutional media established by the law.
  • Fresnillo plc, announced recruitment of 130 mine workers who labored at the Francisco I Madero mine in Zacatecas. The Francisco I Madero mine was indefinitely suspended a month ago but Fresnillo called them to present their documentation and participate in the contracting process to join the Fresnillo and Saucito mines in Fresnillo, Zacatecas. With this measure, the Mexican mining company will increase its base of collaborators, which will have a positive impact in the region, as 130 new direct and 520 indirect jobs will be generated.
  • Bacanora Lithium plc, announced that it is set to start production at its Sonora project in Mexico in 2022, despite COVID-19 interruptions. The company could benefit from the momentum of a “green recovery” after the pandemic that could spur growth in the electric vehicle market, according to the analyst. The USD $420M project, to be carried out through a 22.5: 77.5% JV with strategic partner Ganfeng Lithium, will be the first to produce significant volumes of lithium in Mexico. Production is estimated to approximate 17,500tonnes per year of lithium carbonate, doubling to 35,000 tonnes starting in 2026 following a USD $380M expansion.
  • Mexico has some of the largest undeveloped Ag deposits that have been slowed by economic weakness and price fluctuations. Four deposits with reserves totaling 178 B Oz Ag remain in the list: Cordero deposit in Chihuahua and owned by Discovery Metals, has resources for 595 M Oz Ag; Pitarrila in Durango, owned by SSR Mining with 552M Oz Ag, Metates in Durango, owned by Chesapeake with 526M Oz Ag; and La Preciosa in Durango owned by Coeur with 105M Oz Ag.
  • Senator Miguel Angel Lucero Olivas, president of the Mining and Regional Development commission, will present a point of agreement to maintain the Undersecretariat of Mining and, if possible, raise it to the Secretariat level. Mexico can gain strength thanks to mining and this is a key point of support for the economic reactivation of the country, therefore it is necessary to have a government agency that can lead and represent a strategic sector such as mining.
  • Undersecretary of Mining, Francisco Quiroga Fernández, assured that the six mines he visited in Sonora are free of COVID-19. He also verified that strict protocols are being applied. So far, there have been no confirmed or probable cases of COVID-19 in any of the resumed Sonoran mines. The Undersecretariat of Mining, previously had already visited other mines in the states of Durango, Chihuahua, Zacatecas, and Coahuila, pointed out that there have been no outbreaks or contagions of COVID-19.

ON EXPLORATION

  • Magna Gold Corp., announced plans to conduct initial drill programs at its La Pima, San Judas and Veta Tierra projects in Sonora. At La Pima, a highly prospective high-grade underground Ag project located 30km NE of the San Francisco open pit, Magna plans to commence a 2,000m core drill program once it completes the permitting process and surface ownership negotiations. At San Judas, located 50 km W of San Francisco open pit, it wants to initiate a first phase of RC drilling in Q4,2020, which will comprises 3,000m to test three of the seven priority targets identified to date. At Veta Tierra, located 5.5 Km NW of the San Francisco open pit, the company wants to re-initiate activities to complete an unfinished drill program that was commenced by Timmins Gold in 2013, which will include 2,000 of RC to test the lateral continuity of the Au mineralization indicated by previous drilling along a 300m trend of an exposed diorite intrusion.
  • Vizsla Resources Corp., added a second rig at its Panuco project in Sinaloa. The company recently resumed its 14,500m drilling program focused on testing over 20 initial drill targets on its unexplored Panuco mining district. To date, only approximately 4,500m have been drilled.
  • Kootenay Silver Inc., released drill results from the first core hole collared at its Copalito project in Sinaloa. The first hole (BDH-20-001) reached a depth of 105.2m and tested the eastern edge of the Cinco Señores vein, returning 106 g/t Ag over 22m, including 1.09 g/t Au and 244 g/t Ag over 3m and including 286 g/t Ag over 1m, and other interval of 0.25 g/t Au and 250 g/t Ag over 5m, including 0.1 g/t Au and 360 g/t Ag over 1m. The 3,500m drill program will continue with the next holes planned to test the Cinco Señores vein where chip sampling returned encouraging Au and Ag values such as 2.9 g/t Au and 426 g/t Ag over 3.2m; 0.24 g/t Au and 401 g/t Ag over 5.3m; 1,155 g/t Ag over 1m; 1.8 g/t Au and 396 g/t Ag over 1m; and 534 g/t Ag over 1m. Five additional principal veins of epithermal affinity remain to be drill tested.
  • Mithril Resources Limited, provided an update on the exploration activities at its Copalquin project in Durango. “A permit for the drill program was issued in 2019 and is being fast tracked and expanded to include additional drill target areas.  All drill pads have been constructed for the initial drill program with clear access tracks established.  Drilling support infrastructure is progressing as planned, ahead of the arrival of the drill rig in the coming weeks”. Drilling will begin at La Soledad target, where over 600m of vein have been mapped at surface with an additional 400m of vein splaying off towards the El Indio mine workings to the east. Drilling will continue at Los Pinos and Los Reyes targets, each with approximately 400m of vein mapped at surface.  These structures are the eastern extension of El Cometa. There are other interesting targets in the property but need further mapping and sampling to better define drill targets.
  • GoGold Resources Inc., released drill results from nine holes collared at its Los Ricos South project in Jalisco, including three at San Juan, four at the main Area, one at Rascadero and one at the East Vein. Significant intersections were encountered in hole LR-GG-174 (Main Area) with 2.56 g/t Au and 173 g/t Ag (4.86 g/t AuEq or 365 g/t AgEq) over 15m, including 8.33 g/t Au and 496 g/t Ag (14.94 g/t AuEq or 1,120 g/t AgEq) over 4.4m; hole LR-GG-169 (San Juan) with 3.18 g/t Au and 188 g/t Ag (5.68 g/t AuEq or 426 g/t AgEq) over 4.1m; and hole LR-GG-178 (East Vein) with 1.09 g/t Au and 97 g/t Ag (2.38 g/t AuEq or 178 AgEq) over 4.4m, including 1.88 g/t Au and 171 g/t Ag (4.17 g/t AuEq or 312 g/t AgEq) over 2.0m.

ON MINING

  • Magna Gold Corp., provided an update on its San Francisco mine in Sonora and reported May 2020 production and financial results. In this period, Magna produced and sold 2,349 Oz Au at an estimated cash cost of USD $607 per Oz, resulting in Au sales of USD $4.2M and an operating profit of USD $2.8M. It also announced the commencement of mining and processing fresh mineralized material in August.
  • Santacruz Silver Mining Ltd., reported Q4 and full year 2019 production and financial results from their Mexican mine operations. In Q4, 2019, Santacruz processed 220,154 tonnes to produce 1.32M Oz AgEq at a cash and AISC of USD $ 18.75 and $21.29 per Oz AgEq produced respectively. It reported revenues of USD $9,964 and a net loss of USD $16,017. In 2019 full year, the company processed 469,291 tonnes to produce 2.83M Oz Ag at a cash and AISC of USD $18.34 and USD $21.55 per Oz AgEq produced respectively. It reported revenues for USD $27,140 and a net loss of USD $20,432.

ON FINANCING

  • Aztec Minerals Corp., arranged a non-brokered private placement financing for gross proceeds of CAD $3M with sophisticated investors, shareholders and directors of the Company. Finder´s fees may be payable in cash and / or warrants on certain portions of the financing, subject to regulatory approvals. Part of the net proceeds will be used to conduct exploration work on its Cervantes porphyry Cu-Au project in Sonora and for general working capital purposes.
  • Candelaria Mining Corp., entered into a medium term loan facility with Accendo Banco S.A. for USD $9M. Funds will be used for financing construction of its Pinos project in Zacatecas and for working capital purposes.
  • Mammoth Resources Corp., closed a non-brokered private placement for net proceeds of $141,250, the same that due to demand was increased to $167,475. Gross proceeds will be used for working capital purposes, including corporate development expenses (Tenoriba project, Chihuahua).
  • Megastar Development Corp., closed a non-brokered private placement for gross proceeds of $926,800. Net proceeds will be used to continue exploration on multiple properties within the Oaxaca, Mexico Au-Ag belt optioned from Minera Zalamera S.A. de C.V. (Yautepec, Magdalena and Rama de Oro projects, Oaxaca).
  • Telson Mining Corporation, formed a strategic funding alliance with Accendo Banco for USD $12M. Funds will be used for the construction of the Tahuehueto mining project in Durango and general working capital purposes. Accendo also intends to purchase up to USD $500K of existing debt with Tahuehueto mining project´s suppliers and convert the debt into common shares of Telson. Additionally, Telson intends to conduct a non-brokered private placement for up to $750K.
  • First Mexican Gold Corp., closed the first tranche of its previously announced brokered private placement for gross proceeds of $$1,235,229.73 (Guadalupe project, Sonora).
  • GR Silver Mining Ltd., completed a previously announced bought deal private placement for gross proceeds of $9,153,000. GR plans to use the net proceeds to fund resource expansion and drilling at its Plomosas and San Marcial projects in Sinaloa, and for working capital and general corporate purposes. Brokers who helped with the financing will receive a cash commission of $636,660 and an aggregate of 2,358,000 non-transferable broker warrants at an issue price for a period of 12 months from the closing date of the offering.
  • Magna Gold Corp., announced a non-brokered private placement for net proceeds of up to $7,000,750 and includes lead investments by Eric Sprott and two mining industry participants. The net proceeds from the private placement will be used for working capital purposes in connection with the company’s existing projects. In connection with the private placement, certain parties may receive a finder’s fee payment equal to 6% of the gross proceeds of the offered shares (San Francisco mine, Sonora).
  • Mexus Gold US, announced that on June 13, 2020 it has paid $178,855.49 to satisfy an outstanding debt obligation (Santa Elena mine, Sonora).
  • One World Lithium Inc., approved a temporary management cease trade order which, if granted, will prohibit trading in securities of the company by certain insiders of the company, whether direct or indirect (Salar del Diablo project, Baja California Norte).

ON RESOURCES AND DEVELOPMENT

  • Discovery Metals Corp., released results from 8 drill holes, and extends higher grade at is Cordero project in Chihuahua. Highlights include hole C20-326 with 2,470 g/t Ag, 0.02 g/t Au, and 0.4% Zn (2,489 g/t AgEq) over 0.7m; hole C20-328 with 69 g/t Ag, 0.13 g/t Au, 1.1% Pb, and 1.9% Zn (197 g/t AgEq) over 51.9m, and 62 g/t Ag, 0.22 g/t Au, 1.2% Pb, and 1.3% Zn (174 g/t AgEq) over 62.2m; and hole C20-330 with 38 g/t Ag, 0.16 g/t Au, 0.8% Pb, and 0.8% Zn (112 g/t AgEq) over 85.5m. Based on results Discover has expanded its drilling program from 30,000-35,000m to 50,000-55,000m and will be focused on: 1) “Targeting of broad zones of breccia-hosted mineralization in the east and north-east of both mineralized corridors and 2) Testing of the width, grade and continuity of extensive high-grade vein systems identified in and adjacent to historical artisanal underground workings during the early history of the Project”.
  • Magna Gold Corp., provided an update on its Mercedes and San Francisco properties in Sonora. It reported that a mine design has been completed for its Mercedes project in Sonora, based on the initial drill program completed last year. It also reported that a suite of metallurgical tests work is currently underway. Magna´s objective is to extract 20K Oz Au with minimal associated operating and capital expenditures to provide additional information on the deposit that will guide future drilling and work programs. At San Francisco mine, it announced the execution of an initial four-month drill program in and around San Francisco and La Chicharra open pits to support the conversion of mineral resources to reserves. Magna also has retained Micon International Limited to complete a PFS to re-evaluate the resource model, examine potential operational improvements, and develop an optimized production schedule that incorporates all currently available drill data, updated operating costs and revised gold price assumptions. It is expected to be completed by the end of July, 2020.
  • Sierra Metals Inc., released drill results and confirmed the discovery of a new high grade Ag area called Northeast-Southwest system of epithermal veins at its Cusi mine in Chihuahua. The new high-grade silver vein system was discovered as a consequence of a combination of mine development work in recent months and confirmatory drilling. Significant drill intersections were encountered in hole DC20M658 with 0.1g/t Au, 304 g/t Ag, 0.34%Pb, and 0.25% Zn (327 g/t AgEq) over a true width (TW) of 9.35m; hole DC20M677 with 0.03 g/t Au, 1,140 g/t Ag, 0.37% Pb, and 0.36% Zn (1,163 g/t AgEq) over a TW of 4.90m; hole DC20M686 with 0.04 g/t Au, 428 g/t Ag, 0.46% Pb, and 0.76% Zn over a TW of 17.45m; and hole DC20M687 with 0.45 g/t Au, 890 g/t Ag, 1.74% Pb, and 3.2% Zn (1,151 g/t AgEq) over a TW of 0.85m.

ON DEALS AND CORPORATE ISSUES

  • Bacanora Lithium plc., received notification of the off-market transfer of a portion of the shares beneficially owned by Mark Hohnen, Executive Chairman of the Company. The transfer is ultimately to an existing superannuation pension fund of Mr. Hohnen (Sonora Lithium project, Sonora).
  • Canuc Resources Corporation, announced that it signed a Memorandum of Understanding (MoU) with M3SH Technologies Inc. This will allow Canuc to distribute and sell technological solutions enabling Canuc to facilitate application with mining and extractive industry clients (San Javier project, Sonora).
  • Fortuna Silver Mines Inc., reported results from its annual general meeting of shareholders (San Jose mine, Oaxaca).
  • Oroco Resource Corp., announced that its shares have been approved to trade on the OTCQB Venture market in USA under the symbol “ORRCF”, effective immediately (Santo Tomas project, Sinaloa).
  • Prime Mining Corp., announced key changes in executive management and board of directors, appointing its new CEO, Executive VP, and two new board members. The company also announced that it entered into an amendment to its option agreement on Los Reyes project in Sinaloa, with Vista Gold Inc. The amendment provides for the cancellation of all ongoing NSR and back-in rights held by Vista, in consideration for accelerating the final USD $1.5M option payment owing to Vista and completing a series of additional cash payments totalling USD $2.1M. “Upon the company making the option payment, Vista will no longer retain a capped NSR on production from open-pit mining and a perpetual NSR on production from underground mining.  In addition, Vista will no longer have the Back-in Right to assume a 49% non-carried interest in any underground mining project developed at the property”.
  • Silver Dollar Resources Inc., signed a letter of intent (LOI) to acquire an initial 80% of interest following the exercise of which it may earn an additional 20% for an aggregate 100% interest in La Joya project, Durango from First Majestic Silver Corp. To acquire an 80% interest in la Joya, Silver Dollar will make a cash payment of $1.3M over four years, issue shares equal to 19.9% of Silver Dollar´s then outstanding common shares within one year, incur $1M of exploration expenditures within the first five years, and grant First Majestic a 2% NSR. If Silver Dollar incurs the exploration expenditures within the first three years; however, First Majestic will waive the remaining $600K – or nearly half – of the cash option payments. Silver Dollar may exercise its second option and acquire the remaining 20% (for an aggregate 100%interest) of the La Joya property by providing notice to First Majestic within 30 days of earning the first 80% interest and issuing to First Majestic additional shares equal to 5% of Silver Dollar’s then-outstanding common shares within five years. If Silver Dollar does not provide such notice, Silver Dollar and First Majestic will enter into a joint venture.
  • Newmont Corporation, was ranked top miner in the 100 best corporate citizens list for 2020. It moved from 20th on last year´s list to 13th overall in 3BL Media´s (formerly Corporate Responsibility Magazine´s) 100 Best Corporate citizens (Peñasquito mine, Zacatecas).
  • Torex Gold Resources Inc., notified management changes and results from its annual general meeting of shareholders. It announced the appointment of its new CEO, Executive Chair, and Independent Director (El Limón-Guajes mine complex, Guerrero).
  • Tarachi Gold Corp., retained Digital 257 Technologies Inc., for digital media and capital market communication services. The Company will compensate Digital 257 $10K per month for three months of service. Tarachi also granted 2,735,000 incentive stock options to directors, officers and consultants of the company at an exercise price of $0.31 per share (Juliana project, Sonora).
  • SilverCrest Metals Inc., presented results from its annual general meeting of shareholders (Las Chispas project, Sonora).
  • Silver Spruce Resources Inc., granted 6.75M stock options to directors and consultants of the company with an exercise price of $0.05 per share (Pino de Plata project, Chihuahua).

ON SOCIAL RESPONSIBILITY

  • Mining companies operating in Mexico, have shown their support in different ways to the communities where they operate to face the COVID-19 pandemic. According to the Mexican Mining Chamber (CAMIMEX), 26 mining companies that operate in 16 entities of the country have made different contributions to the sanitary emergency. The contributions have been of a different nature, including donations of medical equipment and personal protection kits, basic services such as water and electricity, medical services, pantries, etc.
  • The Grupo Mexico Foundation, donated preventive kits to the Fire Department, Red Cross and Civil Protection of Hermosillo, Sonora, in order to support public institutions that work daily for the benefit of the community in the face of the health contingency by COVID-19. The Grupo Mexico Foundation delivered 500 protection kits containing goggles, N95 masks to the Fire Department, 500 kits to Civil Protection, and 300 kits to the Red Cross Delegation in Hermosillo, Sonora. It also delivered 35 health and safety kits to the Taxco, Guerrero health sector such as the Adolfo Prieto General Hospital, the Mexican Red Cross Taxco delegation, the Mexican Institute of Social Security and Civil Protection. The donation consisted of 10 packages of safety kits that include tyvek suits, face shield and gloves, and the donation of 25 health kits consisting of tyvek suits, gloves, caps, shoe covers and disposable aprons.
  • Minera Media Luna (Torex Gold), delivered preventive material for the COVID-19 health contingency and surgical material to strengthen the health infrastructure in the Health Centers and Houses of the communities of Nuevo Balsas, Atzcala, Real del Limón and La Fundición, in the municipality of Cocula and Valerio Trujano and in the neighborhood of Tepecoacuilco, in Guerrero state.
  • Minera Penmont (Fresnillo plc), strengthened security protocols to guarantee safe and contagion-free workspaces for its collaborators. The protocols that the company has implemented have been in accordance with the guidelines defined by the Secretaries of Health, Economy and Labor of the Federal Government. Minera Penmont reinforced the cleaning tasks in all its facilities and disinfection of transport trucks for collaborators and suppliers. It placed disinfectant gel in areas of greater affluence and promoted the use of masks in offices and respirators in operating areas. In addition, it installed sanitary filters in which the health status of the personnel was evaluated with first-class equipment and the latest technology such as infrared thermometers and a thermal imager.
  • Mina San Dimas of First Majestic received medical equipment to face contingency for COVID-19 in the San Dimas communities through the company clinic. It received specialized medical equipment to care for patients with acute respiratory diseases, other equipment including oxygen concentrators, laryngoscopes, as well as a capnograph and a portable emergency ventilator that together have a market price of around USD $65K.

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, ptygmatic folds developed in a meta-sedimentary sequence in an orogenic Au prospect in Michoacan, Mexico.  Photo by Miguel A Heredia.

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

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By Jorge Cirett

During the 24th week of the year (June 8th to June 14th, 2020), at least 35 press releases were announced by companies working in Mexico. Notably, 8 of those were exploration updates and 9 related to financing. ON MEXICO ISSUES, Senator Miguel Lucero and a coalition of mining unions proposed the creation of the Mining Secretariat, against the presidential bid to close the Sub-Secretariat of Mining. The Mexican president asked publicly the Canadian ambassador for help to get Canadian mining companies to pay due taxes. First Majestic asked the Canadian ambassador to intervene on the tax dispute. Copper prices have reached $2.60 per pound. Two rival unions were involved in a brawl in Fresnillo, Zacatecas. Francisco Quiroga Sub-Secretary of Mining informed that mines in Mexico are free of confirmed Coronavirus cases. All mines have procedures in place to detect and control outbreaks on transport and work sites. ON EXPLORATION, in Sonora, Silver Viper resumes drilling at La Virginia; Aztec Minerals updated on exploration at its Cervantes project; Colibri presented assay results from grab samples at the Evelyn project. In Chihuahua, Kootenay Silver recommenced drilling at Columba. In Sinaloa, Kootenay Silver restarted drilling at the Copalito property. In Durango, Mithril Resources prepares to drill the Copalquin project. In Jalisco, GoGold Resources began drilling Los Ricos North project. ON MINING, Mexus Gold continues mining at its Santa Elena property. Peñoles is to invest one billion dollars in 2020 in its mining operations. Fresnillo PLC reported on payments to governments of Mexico and Peru. ON FINANCING, Minaurum closed a private placement netting $4.21 M. Discovery closed the second and final tranche of its private placement, accruing C$25 M. Silver Viper commenced trading on the OTCQB in USA. Sonoro Metals realized a third MOU on its Cerro Caliche project, Sonora. Starcore paid its debts and is now debt free. Consolidated Zinc is to raise $0.57 M to purchase equipment. Vangold accelerated the warrant program relating to its 2019 placement. Prime Mining completed the offering for C$10 M. Mag Silver now holds 19.9% of Reyna Silver.   ON RESOURCES AND DEVELOPMENT, Mexican Gold started the fieldwork needed to complete the environmental baseline report at its Las Minas property in Veracruz. Minera Alamos reported more drill results from its Santana project in Sonora. Capstone updated on the mineral resources of its Cozamin mine in Zacatecas, showing a nice increase. ON DEALS AND CORPORATE ISSUES, Magellan Gold is leaving Mexico. Mithril Resources appointed new CEO and Chief Geologist. Sonoro Metals postponed its general meeting. Evrim Resources and Renaissance Gold are merging into a new entity named Orogen Royalties. Silver Spruce optioned the El Mezquite property in Sonora. GR Silver Mining filed on SEDAR the amended technical report on its San Marcial project. ON SOCIAL RESPONSIBILITY. Grupo Mexico, Fresnillo PLC, Argonaut Gold, Bylsa Drilling, Asociación de Real de Minas de San Javier, SilverCrest, Alamos Gold, Agnico Eagle, EMS, Molymex, Metallorum-Autlán, FLSmidth, First Majestic, Gruminex, Peñoles, Barimont, MAC Distribuciones, Dynapro Pumps, Cobre del Mayo, Minera Capela, Peña Colorada and Newmont Corp. informed on a large  array of investments and measures that benefit the mining communities.

ON MEXICO ISSUES

  • Senator Miguel A. Lucero (president of the mining and regional development commission in the senate) proposed the creation of the Mining Secretariat. This was his viewpoint in the rumors that the president Lopez Obrador is about to disappear several sub secretariats on grounds of saving resources. He stressed that the mining industry operates in over 200 municipalities that deserves close attention.
  • The Union Nacional de Sindicatos MineroMetalurgicos de Mexico asked the president Lopez Obrador to evaluate the creation of a Mining Secretariat, to foster national and foreign investment and generate jobs.
  • The President of Mexico, Andres Manuel Lopez Obrador (AMLO) asked publicly the Canadian ambassador for help to get Canadian mining companies to pay due taxes. He stated that the debts are clear and that there is no point on the mining companies to seek legal complaints.
  • First Majestic Silver Corp. has asked Canada’s ambassador to Mexico to intervene in an escalating tax dispute with President Andres Manuel Lopez Obrador’s government. “We’ve been trying to get somebody to the table to finally put this behind us,” First Majestic CEO Keith Neumeyer told Reuters. Neumeyer said the company had proposed three settlement offers since 2018 before launching the trade challenge last month. “Each of the offers has been rebuffed”.
  • Copper prices grew 25% from its March minimums, reaching US$2.60 per Lb thanks to the Chinese recovery.
  • Rival Unions in Fresnillo, Zacatecas, participated in a brawl that resulted in several persons conducted to a nearby hospital for medical care. This arises for a rivalry between the Sindicato Nacional Minero Metalúrgico (FRENTE) and the Sindicato Independiente for representation of workers at the Fresnillo mine.
  • Francisco Quiroga, Sub-Secretary of Mining informed that mines in Mexico are free of confirmed Coronavirus cases. All mines have procedures in place to detect and control outbreaks on transport and work sites.

ON EXPLORATION

  • VanGold Mining Corp. completed a bulk sample and metallurgical test at its Pinguico project in Guanajuato. The 1,039 tonne bulk sample was processed at Endeavour Silver Corp’s Bolañitos mill in Guanajuato, with an average grade of 1.23 gpt AuEq, and a recovery rate of 75.2% Au, 60.4% Ag.
  • Silver Viper Minerals Corp. resumes exploration at its La Virginia project in Sonora. “The recently renewed work program continues Phase II drilling at the El Rubi discovery area, where systematic testing of the structure is being conducted on 50m sectional step outs. A second drill will test exploration targets in and around the El Rubi location”.
  • Kootenay Silver Inc. recommenced drilling at its Columba project in Chihuahua. The initial holes of the remaining 5,200 meters of the phase II 7,000 m program “will focus on expanding the F-vein by following-up on positive results from the first 10 holes of the Program…… Beyond augmenting previously drilled areas the Program will investigate untouched veins mapped out by Kootenay’s geological team”.
  • Aztec Minerals Corp. updated on the exploration of the Cervantes project in Sonora, in advance of the signing of the 65/35 joint venture agreement with Kootenay Silver Inc. Highlights from the 2017 drilling program at the California target include the following intercepts: 160 m @ 0.77 gpt Au (including 80 m @ 1.04 gpt Au, 0.11% Cu); 139 m @ 0.71 gpt Au (including 20 m @ 2.10 gpt Au, 0.16% Cu); 118 m @ 0.63 gpt Au (including 43 m @ 1.18 gpt Au, 0.16% Cu); 122 m @ 0.60 gpt Au (including 62 m @ 0.88 gpt Au, 0.06% Cu); 170 m @ 0.42 gpt Au (including 32 m @ 0.87 gpt Au, 0.06% Cu). Other targets include Purisima East, Estrella, Purisima West and Jasper. Preliminary metallurgical tests have shown 85.1% to 87.7% Au recovery in oxide, 77.9% Au recovery in mixed oxide/sulfide and 51.2% in sulfide.
  • Kootenay Silver Inc. recommenced drilling at its Copalito property in Sinaloa. The 3,000 m drill program was halted due to the Coronavirus lockdown when only one 105.2 m hole had been completed. Over 10 kilometres of untested vein strike has been mapped, with strike lengths up to 2 km and widths from 0.5 m to 15 m. Previously reported grab and channel samples have returned up to 3,770 gpt Ag, 8.2 gpt Au, 17.4% Zn, 9.9% Pb and 1.5% Cu.
  • GoGold Resources Inc. began drilling at the La Trini target, part of the Los Ricos North project in Jalisco. Historical intersections by Tumi Resources include: 24.4 m @ 6.4 gpt Au, 1,629 gpt Ag; 18.3 m @ 3.1 gpt Au, 150 gpt Ag; 6.1 m @ 2.8 gpt Au, 174 gpt Ag; 19.7 m @ 4.9 gpt Au, 193 gpt Ag; 14.1 m @ 4.9 gpt Au, 261 gpt Ag; 10.5 m @ 5.7 gpt Au, 188 gpt Ag.
  • Mithril Resources Ltd. prepares to drill its Copalquin project in Durango. “Drilling and helicopter support contracts have been signed with mobilisation of equipment commencing in June 2020…… Previous drilling has identified three areas with underground mineable grades over potentially mineable widths. These areas are El Refugio, La Soledad and El Cometa (which also include open pit resource potential). Mithril’s drilling campaign will systematically test each of these high-priority areas and will also drill test Los Reyes, Los Pinos, and later La Constancia and the important San Manuel multi-level mine workings”.
  • Colibri Resource Corp. received assays from samples collected on the western part of the Evelyn property in Sonora. The western part of the project is mostly covered by a thin veneer of alluvium and colluvium. More than 50 grab samples have been taken from small areas of sub-crop and outcrop exposed through the cover. “Three samples returned values greater than 2.0 g/t Au, 6 samples returned values greater that 0.25 g/t Au, and a total of 15 samples returned anomalous Au” up to 27.5 gpt Au.

ON MINING

  • Mexus Gold US. continues mining and expects to put 1,800 tons of material in the leach pads by the end of this week, on its Santa Elena mine in Sonora (not to mistake for First Majestic Santa Elena mine, also in Sonora).
  • Industrias Mineras Peñoles. is to invest one billion dollars in Mexico this year, regardless of the economic downturn by the Coronavirus pandemic.
  • Fresnillo PLC. reported on payments done to Mexico and Peru governments derived from its operations in both countries. The company paid in Mexico a total of US$233.7 M in Mexico, of which US$28.6 M were from licences and mining concessions fees.Fresnillo PLC Report on Payments to Governments1

ON FINANCING

  • Minaurum Gold Inc. announced the closing of the previously announced non-brokered private placement, for gross proceeds of $4.21 M, with the prominent participation of Sprott Global Resources Investments Ltd. (Alamos Silver, Sonora).
  • Discovery Metals Corp. closed the second and final tranche of its non-brokered private placement for aggregate proceeds of C$25 M. “The Company also announces it has received approval by the Mexican government to resume operations at its Cordero project with strict COVID-19 health and safety protocols”. The company has over $40 M in cash on its balance sheet (Cordero, Chihuahua).
  • Silver Viper Minerals Corp. commenced trading on the OTCQB Venture Market in the United States (La Virginia, Sonora).
  • Sonoro Metals Corp. executed a third memorandum of understanding (MoU) for the finance and development of its proposed Cerro Caliche Heap Leach Pilot Operation. As of February 28, 2020, Sonoro had received two executed MoUs regarding project debt financing and EPC services for its proposed Cerro Caliche heap leach (Cerro Caliche, Sonora).
  • Starcore International Mines Ltd. reported that the company paid out CAD$3 M of secured bonds plus accrued interest of CAD$235.4 K. In addition to this, the company also repaid a US$1 M loan. The payments were made from the Company’s cash flow generated from mine operations and prior asset sales (San Martin mine, Queretaro).
  • Consolidated Zinc Ltd. announced firm commitments to raise a further $0.57 M via a single tranche placement. “Funds raised from the Placement will be applied towards the purchase of equipment to increase efficiencies at Plomosas, working capital and offer costs” (Plomosas, Chihuahua).
  • VanGold Mining Corp. announced that to date the warrant acceleration program in connection with the company’s 2019 placement has rendered $1.16 M in gross proceeds of which $650 K were accrued by the exercise of warrants by Vangold’s directors and officers. “…funding for a portion of the exercise of warrants by directors and officers was facilitated through the sale of a portion their existing share holdings” (El Pinguico, Zacatecas).
  • Prime Mining Corp. announced the completion of the offering for gross proceeds of C$10 M (Los Reyes, Sinaloa).
  • Mag Silver Corp. has acquired 14.55 M shares of Reyna Silver Corp., owning to date 19.9% of its outstanding shares.

ON RESOURCES AND DEVELOPMENT

  • Mexican Gold Mining Corp. announced “that fieldwork towards completing an environmental baseline study has commenced at the Las Minas project. Drilling at Las Minas is scheduled to commence in early July”.
  • Minera Alamos Inc. reported more drilling results from its Phase II program at its Santana project in Sonora. The results further expand mineralization to the SW, and confirm the depth potential previously identified. Highlighted core length intervals comprise: 202.7 m @ 0.51 gpt Au; 105.6 m @ 0.31 gpt Au, 50.9 m @ 0.34 gpt Au; 90.0 m @ 0.40 gpt Au; 43.3 m @ 0.61 gpt Au; 42.5 m @ 0.36 gpt Au; 62.5 m @ 0.31 gpt Au, 188.2 m @ 0.28 gpt Au.
  • Capstone Mining Corp. updated the mineral resource estimate for the Cozamin mine in Zacatecas.cozamin-june2020-resource-estimate-update1cozamin-june2020-resource-estimate-update21

ON DEALS AND CORPORATE ISSUES

  • Magellan Gold Corp. is redirecting its focus toward opportunities within the United States. “the company has divested all of its Mexico operations through the sale of its subsidiary Magellan Acquisition Corp.”. Among the operations divested is the SDA mill and the El Dorado property, both in Nayarit.
  • Mithril Resources Ltd. appointed John Skeet as its new CEO and Hall Stewart as its Chief Geologist (Copalquin, Durango)
  • Sonoro Metals Corp. postponed its annual general meeting to September 4, 2020 (Cerro Caliche, Sonora).
  • Evrim Resources Corp. and Renaissance Gold Inc. entered into an agreement to combine in a merger of equals “in which Evrim will acquire all of the outstanding common shares of Renaissance through a share exchange transaction to create a new company, to be named Orogen Royalties Inc. Orogen will focus on project generation as has been the history of both Evrim and Renaissance but with a renewed focus on organic royalty creation and royalty acquisition” (royalty in Ermitaño, Sonora).
  • Silver Spruce Resources Inc. signed a binding option agreement with Colibri Resources Corp. to acquire 50% interest in its wholly owned Mexican subsidiary Yaque Minerals S.A. de C.V., which holds the El Mezquite project in Sonora. El Mezquite is 12 Km NE of the Santana property, currently under mine development by Minera Alamos. To obtain 50% interest Silver Spruce has to pay US$82.5 K by September 1, 2020, US$127.5 K by September 1, 2021, and CDN$500 K for a debenture due in October 2023. The company will have the option to pay US$107.5 K by December 31, 2020 to complete the cash acquisition for a discounted total of US$190 K. Minimum work expenditures total US$600 K on the four year term of the agreement. A 1% royalty to the original vendors of the property can be purchased for US500 K at any time.
  • GR Silver Mining Ltd. filed on SEDAR its amended technical report on resources estimation of its San Marcial project in Sinaloa. There are 12 amendments in different parts of the report, with no material differences on the resource estimation.

ON SOCIAL RESPONSIBILITY

  • In Sonora more than 125 thousand persons in 30 municipalities and 47 rural communities have received support by 13 mining companies and six service providers: Grupo México, Fresnillo Plc, Argonaut Gold, Bylsa Drilling, Asociación de Real de Minas de San Javier, SilverCrest, Alamos Gold, Agnico Eagle, EMS, Molymex, Metallorum-Autlán, FLSmidth, First Majestic, Gruminex, Peñoles, Barimont, MAC Distribuciones, Dynapro Pumps and Cobre del Mayo).
  • The mining sector in Mexico strives nowadays for social co-responsibility between community, government and enterprises, where the communities define their needs and priorities, the government complies with its responsibilities and enterprises promote and provide resources, organize community committees and develop executive projects.
  • The world day of the environment was held in Teloloapan, Guerrero, with the presence of Efrén Romero, municipal president, Army members and Minera Capela executives.
  • In Cuencamé, Durango, a road work investment of 11 million pesos was inaugurated by Luly Martínez. Municipal president. The investment was made possible with resources from the Mining Fund.
  • Agnico Eagle received the Environmental Excellence Award from the Mining Association in Canada, for its work in Pinos Altos, Chihuahua, where was developed an ultra-high density grazing initiative.
  • Peña Colorada builds a medical facility in Manzanillo. With an investment of 4 M pesos, the facility will count with an area for patient care, and another area for the rest of the medical personnel, as this new building is by the side of the Hospital General de Manzanillo.
  • Newmont Corp. published its 2019 sustainability report. The report displays all the work planned and done by the company as it strives to better its environmental, social and governmental imprint in Mexico.
  • Bylsa Drilling efforts on social responsibility on the communities neighboring the Las Chispas and Alamos Silver projects in Sonora were commended by governor Claudia Pavlovich.
  • The Mining Fund provided the resources to build the Doctores Avenue in Fresnillo, Zacatecas. The 27.14 million pesos invested funded 670 m of paving and drainage construction.
  • Grupo Mexico restated its compromise on the state of Chihuahua with the donation of a termo-cycler to the State Health Laboratory. Previously the company had donated five mechanical ventilators to the University Central Hospital, same that shortly is to receive 25 non-invasive ventilators more.

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

On the image below: Quartz-graphite vein, Hermosillo District, Sonora. Picture by Jorge Cirett.

172

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

tight folds

By Miguel A Heredia

During the twenty three week of the year (June 1st to June 7th, 2020), at least 49 press releases were announced by companies working in Mexico, with fifteen commenting on Mexican issues, twelve communicating resumptions, production and financial results, six announcing financial rounds, five discussing on social issues, five reporting on resources and developments, three disclosing deals and corporate issues, and three informing on exploration results.  ON MEXICO ISSUES, The Undersecretary of Mining and the state Governors declared that the resumption of the mining activities in the first week of June has been successful. Francisco Quiroga, the Undersecretary of Mining, stated that the mining sector will sustain part of the national economic recovery after the COVID-19 pandemic.  The Mexican government, in a very unfortunate statement, declared that it is analyzing the possibility to disappear the Undersecretariat of Mining. Fernando Alanís, president of the Mexican Mining Chamber (Camimex), stated that Mexico’s mining production would drop 17% this year due to coronavirus pandemic. The deputy of the PRI, Carlos Pavón Campos, will present a proposal requesting that the Mining Fund returns to be used in accordance to its original objective. Esperanza Silver de México (Alamos Gold Inc.) announced that it expects to create hundreds of direct + indirect jobs if they open its Esperanza mine in Morelos. According to Fernando Alanis, president of the Mining Chamber of Mexico (CAMIMEX), mining companies plan to invest USD $4B in 2020.  Resuming of the mining activities in Oaxaca will activate 10,000 jobs. ON EXPLORATION, In Sinaloa, Vizsla recommenced drilling at its Panuco project. In Zacatecas, Advance Gold provided an exploration update on its Tabasqueña project. In Jalisco, GoGold resumed drilling at its Los Ricos project.  ON MINING, Several mining, such as GoGold, Great Panther, Avino, Argonaut, Impact Silver, Pan American Silver, Telson, Excellon, and Sierra Metals among others, announced the restart of their Mexican mining operations after receiving approval of the Mexican Social Security Institute (IMSS).  Mexus Gold reported its May 2020 production results from its Santa Elena mine in Sonora. US Antimony reported its Sb and zeolite production for the month of May 2020. Excellon presented Q1 2020 production and financial results (La Platosa, Durango).  ON FINANCING, Advance Gold announced a non-brokered private placement for gross proceeds of up to $300K (Tabasqueña project, Zacatecas). Discovery Metals closed the first tranche of a CAD $35M non brokered private placement, for aggregates proceeds of CAD $17.1M (Cordero project, Chihuahua). Magna Gold closed its previously announced non-brokered private placement for gross proceeds of $7M (San Francisco mine, Sonora). Silver Viper closed its previously brokered private placement for gross proceeds of CAD $5.12M (La Virginia project, Sonora). Alamos Gold declared quarterly dividends of USD $0.015 per common share (Mulatos mine, Sonora).  Pan American Silver announced the closing of its overnight marketed secondary offering of common shares of Maverix Metals Inc., in which it raised gross proceeds of USD $45.54M (La Colorada mine, Zacatecas).  ON RESOURCES AND DEVELOPMENT, VanGold concluded its +1,000 tonnes bulk sample and metallurgical test of mineral material from its Pinguino project in Guanajuato. Premier announced an update on its delineation core drilling program at its Mercedes mine in Sonora. US Antimony reported that a thickener circuit is being constructed on site at its Puerto Blanco mill in Guanajuato.  Endeavour released new high grade Au-Ag drill results from its Guanacevi mine in Durango. Golden Minerals President & CEO spoke about its Velardeña and Rodeo projects in Durango and its intention to bring them into production in 2021.   ON DEALS AND CORPORATE ISSUES, Canuc postponed the filing of its interim consolidated financial statement and management´s discussion and analysis for the period ended March 31, 2020 due to the COVID-19 pandemic (San Javier project, Sonora).  San Marco granted stock options to directors and officers (Chunibas project, Sonora). Newmont published its 2019 sustainability report (Peñasquito mine, Zacatecas).  ON SOCIAL RESPONSIBILITY, Consorcio Minero Peña Colorada invested MXP $4M to refurbish health unit in Manzanillo, Colima. The Grupo Mexico Foundation delivered important donation to the Health Sector of Chihuahua and Sombrerete, Zacatecas. Minera Cuzcatlán (Fortuna Silver) donated medical ventilator, pantries, medicines and cleaning kits in Oaxaca. Minera San Julián (Fresnillo plc) delivered a mechanical ventilator and personal protection equipment to medical personnel of the Mexican Social Security Institute (IMSS) of Parral, Chihuahua.

ON MEXICO ISSUES

  • The Undersecretary of Mining and the state governments, declared that the resumption of the mining activities in the first week of June has been successful. Almost 90% of the companies in the sector are already on work, thanks to the support of Francisco Quiroga, the Undersecretary of Mining of the Ministry of Economy, who established agreements with Governors of the states and with the companies, so that they could return to work safely and without risk of COVID-19 infections. The remaining 10% of mining companies are preparing sanitary protocols to resume activities in the coming days.
  • Francisco Quiroga, the Undersecretary of Mining, stated that the mining sector will sustain part of the national economic recovery after the COVID-19 pandemic. Activities derived from the mining industry serve to maintain various communities and even in some areas is the main source of economy. The mining sector is carrying out its reactivation of activities in a progressive way and with respect to health protocols. The sector has always worked with rigorous safety protocols to carry out its activities,
  • The Mexican government, in a very unfortunate statement, declared that it is analyzing the possibility to disappear the Undersecretariat of Mining. The measure would be in complete contradiction to the recent recognition of mining as an essential sector that generates 2.6 million jobs, has an impact in 10 states of the country and represents around 3% of GDP. The president AMLO has suggested the imminent disappearance, conversion, or inclusion in another agency, in order to reduce public spending. It occurs just when the Undersecretary of Mining, Francisco Quiroga, reached agreements with Governors, and the mining companies and their representatives have worked hard in a coordinated way to implement the security protocols. Entrepreneurs in this area, both Mexican and foreign, consider that the disappearance of the Undersecretariat of Mining may be negative for a sector that represents around 8% of industrial GDP. The panorama is worrying, since it seems to show the little interest of the current administration to encourage the development of the mining sector. Mining companies and their representatives see this measure as a setback for the country´s development. AMLO stated that to date, none decision has been taken so far, and recognized that mining is a fundamental economic activity that generates many jobs in the case of Sonora, Chihuahua, Durango, and the rest of the mining states.
  • Fernando Alanís, president of the Mexican Mining Chamber (Camimex), stated that Mexico’s mining production would drop 17% this year and the sector´s export could decrease by around 10% due to the cessation of operations to contain the spread of the coronavirus. He also said that although activities in the industry were beginning to resume and about half of the operating personnel had returned to work, exploration work remained suspended and anticipated that the pandemic would also have ended with some 71,000 indirect jobs in the local sector.
  • The deputy of the PRI, Carlos Pavón Campos, will present a proposal in the Chamber of Deputies, requiring that the Mining Fund returns to carry out infrastructure works in the municipalities of the country where mining activity is performed, with the purpose of promoting the development of the communities, which was its original objective.
  • Esperanza Silver de México (Alamos Gold Inc.), announced that it expects to create hundreds of direct + indirect jobs if they open its Esperanza mine in Morelos. Esperanza Silver, under the scheme of a “New Model of Social and Environmentally Responsible Mining” policy, wants to bring its project to the community of Tetlama to protect the environment and generate employment that is essential for the economic reactivation of the state due to the direct + indirect jobs that will be generated, the value chains and supplies that will be activated, and the generation of taxes that will favorably impact state and municipal public finances. The company has projected an estimated investment of USD $450M to bring into production its mining project.
  • According to Fernando Alanis, president of the Mining Chamber of Mexico (CAMIMEX), mining companies plan to invest USD $4B in 2020, which represents 14% more than in 2019, despite the COVID-19 health crisis.
  • Resuming of the mining activities in Oaxaca, will activate 10,000 jobs. The mining personnel will carry out all the health and training protocols to avoid COVID-19 infections, supervised by the Mexican Social Security Institute (IMSS).

ON EXPLORATION

  • Vizsla Resources Corp., announced that it has re-commenced drilling at its Panuco project in Sinaloa. It had previously announced the return of its staff to the project on May 21, 2020 to execute its exploration program at its district-scale project.
  • Advance Gold Corp., provided an update on its Tabasqueña project in Zacatecas. The CEO of the company stated that they have hit what appears to be a very large sulphide system with their recent drilling program collared into a 3.2Km continuous IP chargeability anomaly. These holes encountered promising grades in the stacked lenses of disseminated sulphides. Next step will be to drill the core of the system on the hinge zone of the IP chargeability anomaly, where it increases in width, to confirm the identified mineralization.
  • GoGold Resources Inc., resumed drilling at its Los Ricos project in Jalisco. The Company is nearing completion of resource drilling at Los Ricos South for its upcoming 43-101 compliant resource calculation.

ON MINING

  • Several mining companies, such as GoGold, Great Panther, Avino, Argonaut, Impact Silver, Pan American Silver, Telson, Excellon, and Sierra Metals, among others, announced the restart of their Mexican mining operations following a government order adding mining to the list of essential services, and after receiving approval from the Mexican Social Security Institute (IMSS).
  • Mexus Gold US, reported May 2020 production results from its Santa Elena mine in Sonora. It produced 102 Oz Au. The company announced that it plans to produce 150 Oz Au in June 2020. The heap leach pad at the Santa Elena mine currently holds 18,000 tons of mineralized material. Head grades are estimated at 3 to 4 g/t Au.
  • US Antimony Corporation, announced that it produced 108.9K Lb Sb and 1,129 tonnes of zeolites during the month of May 2020.
  • Excellon Resources Inc., presented Q1 2020 production and financial results from its La Platosa mine in Durango. It processed 19,042 tonnes of 542 g/t Ag, 5.4% Pb and 6.8% Zn to produce 296.3K Oz Ag, 1.89M Lb Pb, and 2.1M Lb Zn (or 523.7K Oz AgEq) with metallurgical recoveries of 89.3%, 82.8%, and 74.9% respectively.  Total cash and AISC of USD $15.35 and USD $26.52 per Oz Ag payable was reported respectively. The company had revenues of USD $6.6M, gross loss of USD $0.1M, cash and cash equivalents of USD $8.4M.

ON FINANCING

  • Advance Gold Corp., announced a non-brokered private placement to raise gross proceeds for a maximum of $300K. Net proceeds will be used to advance its Tabasqueña project in Zacatecas and for general corporate purposes.
  • Discovery Metals Corp., closed the first tranche of a CAD $35M non brokered private placement, for aggregates proceeds of CAD $17.1M. Discovery intends to close a further CAD$7,9M in subscriptions in a second tranche of the private placement, for an aggregate total of CAD $25M. Net proceeds of the first tranche will be used to fund their Cordero and Coahuila projects in Chihuahua and Coahuila states respectively, and for general working capital purposes.
  • Magna Gold Corp., closed its previously announced non-brokered private placement for gross proceeds of $7M. Gross proceeds will be used for working capital purposes in connection with their existing projects (San Francisco mine and Mercedes and San Judas projects, Sonora).
  • Silver Viper Minerals Inc., closed its previously announced brokered private placement for gross proceeds of CAD $5.12M. A cash commission of CAD $218,770 was paid to the brokers, representing a 6% of the gross proceeds. Silver Viper will be used the net proceeds to fund the development of its Virginia project in Sonora, and for working capital and general corporate purposes.
  • Alamos Gold Inc., declared quarterly dividends of USD $0.015 per common share. The company has paid dividends for 11 consecutive years during which time USD $173M has been returned to shareholders through dividends and share buybacks.
  • Pan American Silver Corp., announced the closing of its overnight marketed secondary offering of common shares of Maverix Metals Inc., in which Pan American raised gross proceeds of USD $45.54M (La Colorada mine, Zacatecas).

ON RESOURCES AND DEVELOPMENT

  • VanGold Mining , concluded its +1,000 tonnes bulk sample and metallurgical test of mineral material from its Pinguino project in Guanajuato. This bulk sample was sent to Endeavour’s Bolañitos mill, located approximately 28km from El Pinguico project. The company will report the results obtained once the information is received. On the other hand, crews are clearing the bottom of the El Pinguino shaft since approximately 30 m of debris has accumulated at the bottom. Once it is done, VanGold plans to sample the bottom of the underground stockpile in order to determine if the grades of Au and Ag obtained on the top of the stockpile extends to the bottom of it; inspecting the #7 Sangria adit since it may provide a potential safe and inexpensive haulage way to bring the underground material to surface; and sample the Colmillo stope since it was a high grade portion of the Pinguico mine during the period prior to its closure in 1913.
  • Premier Gold Mines Limited, announced an update on its delineation core drilling program at its Mercedes mine in Sonora. The 2020 delineation drilling campaign is focused on expanding and confirming higher-grade mineralization in several areas including Marianas and Diluvio West. Highlights at Diluvio West include hole UG-DI20-096 with 6.1 g/t Au and 23 g/t Ag over 84.7m, and hole UG-DI20-095 with 6.38 g/t Au and 14 g/t Ag over 73.5m. At Marianas, good drill intersections were encountered at hole UG-MR20-056 with 11.67 g/t Au and 56g/t Ag over 5.2m and hole UG-MR20-059 with 9.74 g/t Au and 16 g/t Ag over 11.3m. Diluvio consists of a stockwork system that is divided into Diluvio Central, hosted in felsic volcanoclastic, and Diluvio West hosted in an andesite while Marianas represents the down-plunge extension of the main Mercedes mine trend.
  • US Antimony Corporation, reported that a thickener circuit is being constructed on site at its Puerto Blanco mill in Guanajuato to increase the production rate and control the pulp density of ore to be processed. “The company is anxious to continue on the cyanide leach of the gold and silver Los Juarez ore now that they will have a thickener.”
  • Endeavour Silver Corp., released drill results of 18 holes collared in the Santa Cruz vein on the El Curso property at its Guanacevi mine in Durango, of which 12 holes reported new high grade Au-Ag values over minable widths. Drilling highlights include hole UCM-27 with 3.25 g/t Au and 1,085 g/t Ag (1,410 g/t AgEq) over a true width (TW) of 10m; hole UCM-26 with 1.87 g/t Au and 762 g/t Ag (949 g/t AgEq) over a TW of 5.1m; and hole UCM-25 with 1.43 g/t Au and 986 g/t Ag (1,129 g/t AgEq) over a TW of 4.8m. This drilling program confirmed the extension of the P4 orebody, and now the extension measures 200 m long by 300 m deep, still open at depth, and discovered a new mineralized zone to the west of the P4 extension of 250 m long by 150 m deep, still open along strike and at depth.
  • Golden Minerals Company President & CEO, spoke about its Velardeña and Rodeo projects in Durango and its intention to bring them into production in 2021. The company is currently generating revenue through the lease of its oxide mill in Mexico to Hecla Mining Company, and intends to bring into production its Rodeo open pit Au project in 2021 after the lease concludes with Hecla at the end of 2020. Rodeo, according to the PEA “is capable to provide almost USD $25M in after-tax cash flow in two years of production. The goal of the company is to use the cash generated from Rodeo to finance a potential startup for its Ag-Au Velardeña project. Velardeña’s 2020 PEA shows an USD $86M NPV”.

 ON DEALS AND CORPORATE ISSUES

  • Canuc Resources Corporation, postponed the filing of its interim consolidated financial statement and management´s discussion and analysis for the period ended March 31, 2020 due to the COVID-19 pandemic (San Javier project, Sonora).
  • San Marco Resources Inc. granted stock options to directors and officers (Chunibas project, Sonora).
  • Newmont Corporation, published its 2019 sustainability report, “Beyond the Mine”, a transparent and comprehensive disclosure of the Company’s environmental, social and governance (ESG) performance.

ON SOCIAL RESPONSIBILITY

  • Consorcio Minero Peña Colorada S.A. de C.V., invested MXP $4M to reconvert a building attached to the Manzanillo General Hospital, providing it with medical equipment and furniture for 3 medical care modules and one more for the rest of medical personnel.
  • The Grupo Mexico Foundation, delivered important donation to the Health Sector of Chihuahua, which consisted of five new mechanical ventilators, 15,000 medical equipment consisting of N-95 masks, disposable gowns, face masks, goggles, overalls, boot covers, respirators, aprons and gloves, as well as ultrasound equipment, portable X-rays and monitoring panels. The donation also included 25 non-invasive ventilators and 10,000 serological tests for COVID-19, which will allow detecting a greater number of people infected and have a broader overview of the behavior of the disease in the state. Additionally, Grupo México Foundation also joined the Chihuahua Food Program, by donating 650 pantries to support vulnerable groups in the municipalities of Aquiles Serdán and Santa Bárbara. In Sombrerete, Zacatecas, the Grupo Mexico Foundation also delivered more than 1,700 articles of medical supplies consisting of tyvek coveralls, N95 masks, face shields, disposable gowns and boot covers, and alcohol gel, and donated 700 pantries to the municipality of Sombrerete through the Municipal DIF to be distributed among the groups most at risk from this epidemic, as is the case of older adults in the Divine Providence Asylum that received 40 pantries with items from the basic food basket.
  • Compañía Minera Cuzcatlán (Fortuna Silver Mines Inc., donated MXP $1.3M to the Business Contingent Exchange and the Medical Support Program promoted by the Oaxaca Ministry of Economy to buy an equipment for ventilation and respiratory monitoring in the Intensive care unit, and delivered more than 3,300 pantries, 3,400 family cleaning packages and 4,600 medicines to the population of San José del Progreso and communities close to the operation of the San José mining unit. It is estimated that these actions have benefited more than 7,000 Oaxacans.
  • Minera San Julián (Fresnillo plc), delivered a mechanical ventilator equipment to the Mexican Social Security Institute (IMSS) of Parral, Chihuahua and donated more than 2,000 pieces of personal protective equipment such as 50 tyvek suits, 200 N-95 face masks, 200 surgical fabric mouth masks, 600 mine-made mouth masks, 1,000 pairs of nitrile gloves and 50 safety glasses to employees of the health institution.

 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, tight folds in an orogenic Au prospect in Michoacan, Mexico.  Photo by Miguel A Heredia.

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

134 - copia

By Jorge Cirett

During the 22nd week of the year (May 24th to May 31st, 2020), at least 36 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, Francisco Quiroga, subsecretary of mining had a very active week by reviewing personally the health protocols put in place by mining companies in several states, as well as being present on the installation of regional mining committees in a handful of states, before the full re-start of mining operations allowed by the government. BNamericas presented a list of 24 mining projects going ahead in Mexico from 2020 to 2026, with a capital investment of US$7,450 M. Mining companies scrambled on the restart of operations permitted by the government with the inclusion of the industry in the category of essential activities that can operate during the Coronavirus emergency. ON EXPLORATION, in Sonora, Ridgestone Mining resumed activities at its Rebeico project. In Chihuahua, Kootenay Silver released results from drilling at its Columba project; Mammoth Resources announced Centerra is returning for exploration work at its Tenoriba project. In Nayarit, Candente Gold is to rehabilitate underground workings to advance its El Dorado project. In Zacatecas, Defiance Silver delineated several targets at the San Acacio property. ON MINING, Sierra Metals, Impact Silver, Mexus Gold, Fortuna Silver, Gold Resource, Endeavour Silver and Aura Minerals announced the recommencement of activities, following the government easing of restrictions on mining. Impact Silver and Discovery Metals reported first quarter 2020 results. GR Silver Mining is postponing the filing of first quarter 2020 results, under the blanket relief granted by the regulatory authorities in Canada. ON FINANCING, in a pretty busy week, 16 companies made announcements related to their financing.  Canasil Resources granted 1.75 M options. Orex Minerals intends to raise up $2 M. Silver Tiger Metals is now trading on the OTCQB quotation system in the US. Vangold Mining accelerated a warrant bonus program in connection with its 2019 private placement. Equinox Gold saw warrants exercised for $145 M. Southern Silver Exploration extended the expiry date of some warrants for two years. Ridgestone Mining is now listed in the Frankfurt Stock Exchange. Aztec Mining engaged a Swiss investor relations firm for European exposure. Vizsla Resources is pursuing a financing round for C$4 M. DynaResources closed a financing agreement for $3.9 M. Minaurum Gold closed its private placement grossing $5 M. Telson closed the second tranche of its private placement for $196.6 K. Golden Tag Announced a non-brokered private placement for up to $1.12 M. Solaris Resources raised C$20 M. Mammoth Resources announced a private placement for up to $131 K. Consolidated Zn intends to raise up to $1.73 M.   ON RESOURCES AND DEVELOPMENT, Mexican Gold Mining is working on the PEA for its Las Minas project in Veracruz. Golden Minerals filed the PEA on Rodeo, Durango. Bacanora Lithium updated on activities to further advance its Sonora Lithium project. Discovery Metals has completed 15,000 m of its 30,000 m phase 1 drill program at its Cordero project in Chihuahua. ON DEALS AND CORPORATE ISSUES, Mithril completed the acquisition of Sun Minerals, obtaining thus the Copalquin project in Durango. Candente Gold amended the memorandum of understanding to acquire the El Dorado property and the SDA mill in Nayarit. Sonora Metals published and filed a new version of the Cerro Caliche development report, as requested by the British Columbia Securities Commission. ON SOCIAL RESPONSIBILITY. Minera Peña Colorada, Grupo Mexico, Fresnillo PLC, Minera Real Bonanza and the mining industry in Sonora  informed on donations and work realized to aid communities, mainly on subjects related to the Coronavirus emergency, like medical supplies and equipment, comprising also a large array of investments and measures that benefit the mining communities.

ON MEXICO ISSUES

  • Francisco Quiroga, subsecretary of Mining, personally verified the application of safety protocols to re-start operations in mines. Quiroga visited Agnico Eagle’s Pinos Altos, Grupo Mexico’s Santa Barbara and Frisco’s Concheño mines in Chihuahua. He will also review protocols in Durango, Zacatecas and Coahuila.
  • The fourth virtual personnel hiring session was held by La Cantera Desarrollos Mineros in Zacatecas.
  • The silver price has seen its strongest monthly growth in almost seven years. Prices have reached up to $17.69 per ounce.
  • The Regional Committee for the Development of Mining Zones was constituted in Durango.
  • Mining Companies are to re-start operations on June 1, 2020. Dozens of mining companies prepare to re-commence mining and processing activities, reviewing its health and work protocols.
  • The Regional Committee for the Development of Mining Zones was installed in Zacatecas. The governor Alejandro Tello, the Camimex president, Fernando Alanís and the Mining subsecretary Francisco Quiroga were in the event that also saw the presence of representatives of Fresnillo PLC, Industrias Peñoles, Minera Frsico, Capstone Gold, Excellon Resources, Newmont, Aura Minerals, Arian Silver, Grupo Mexico, Impulsora Minera Santacruz, First Majestic, Grupo Minera Candelaria, Minera Camino Rojo, and Minas de San Nicolás.
  • The subsecretary of Mining Francisco Quiroga reviewed the sanitary procedures of Minera El Roble.
  • Peñasquito restarted operations in Zacatecas, after the review of the health protocol by Francisco Quiroga, subsecretary of mining.
  • Bnamericas presented a list of mining projects going forward in 2020-2026 with a capital investment of US$7,450 M, notwithstanding the pandemic induced stoppages. A total of 24 projects would increase the annual production by 1.5 M Oz Au, 33 M Oz Ag and 247 K tonnes Cu to 2026.Bnamericas table, Mining Projects 2020-2026

ON EXPLORATION

  • Kootenay Silver Inc. released results from four more drill holes at its Columba project in Chihuahua. Highlighted core length intervals comprise: 1.06 m @ 259 gpt Ag; 7.0 m @ 124 gpt Ag (including 3.6 m @ 197 gpt Ag); 2.8 m @ 762 gpt Ag (including, 1.0 m @ 2,010 gpt Ag); 10.2 m @ 68 gpt Ag (including 0.65 m @ 368 gpt Ag); 4.4 m @ 209 gpt Ag (including 1.4 m @ 484 gpt Ag); 38 m @ 50 gpt Ag (including 0.45 m @ 486 gpt Ag); 6.0 m @ 317 gpt Ag (including 2.0 m @ 865 gpt Ag); 36 m @ 72 gpt Ag (including 1.1 m @ 769 gpt Ag and 4.36 m @ 317 gpt Ag). Drill results show continuity and high grades along nearly 600 meters of strike on the F Vein at depths from 15 to 200 meters.
  • Ridgestone Mining Inc. has resumed activities at its Rebeico project in Sonora. “Core samples from the first three drill holes at the New Year Zone, which encountered abundant sulphides, have been sent to ALS Chemex in Hermosillo for assaying”.
  • Mammoth Resources Corp. announced the return of Centerra Gold Inc. personnel to Mammoth’s Tenoriba project in Chihuahua.
  • Candente Gold Corp. is planning underground work on the El Dorado project in Las Minitas, Nayarit. Rehabilitation of underground workings is to aid in the construction of a 3-D model of unmined blocks and vein structure, to guide potential mining/extraction operations. Drill data from the 2010-2011 campaign would be also incorporated.
  • Defiance Silver Corp. announced the delineation of multiple targets at is San Acacio project in Zacatecas, which include a 1.3 Km by 300 m corridor where a hanging wall mineralizing event has been identified, deep targets along the Veta Grande strike to the SE, and the El Mirador part of the multi-km long La Veta Morada fault. Re-logging and sampling of historical drill holes is to continue, with a 5,000 m drilling program planned on existing targets. Defiance is preparing additional drill permit applications that will test some of the targets that lie outside of the current drill permit.

ON MINING

  • Sierra Metals Inc. informed the Mexican government issued a communication stating “that the effective date for Mining to be deemed an essential service was June 1, 2020. The Company is currently recalling employees from the Bolivar Mine (Chihuahua) to begin a COVID-19 screening process, including a quarantine period, allowing the Company to be ready to commence mining activities on June 1, 2020. The Cusi Mine (Chihuahua), as previously discussed in the May 13, 2020 press release, remains in care and maintenance”.
  • Aura Minerals Inc. announced that the Company filed its interim financial statements for the first quarter of 2020 (Aranzazu, Zacatecas).
  • Impact Silver Corp. announced its financial and operational results for the first quarter of 2020. Silver production was 179 K Oz Ag, with mill feeds from the Guadalupe, San Ramon, Cuchara and Veta Negra mines. At the end of the period the company cash and working capital stood at $3.9 M and $3.4 M respectively. Mining is to resume on June 1st, 2020, following government directions (Zacualpan, Estado de Mexico).
  • Mexus Gold US. Resumed full operational production after the Coronavirus emergency slowdown at its Santa Elena mine in Sonora (not to be mistaken with First Majestic’s Santa Elena mine, also in Sonora).
  • Fortuna Silver Mines Inc. resumed production activities at its San José mine in Oaxaca.
  • Gold Resource Corp. received written government approval to restart its Oaxaca Mining Unit in Oaxaca. “After reviewing Gold Resource Corporation’s safety protocol documentation, the Instituto Mexicano del Seguro Social (IMMS) approved in writing the restart of the Company’s OMU operations on May 25, 2020”.
  • Endeavour Silver Corp. has restarted operations at its three underground mines in Mexico. “The Company filed its mine operating and health plans with, and received approvals from, the Secretariat of Health in Mexico to recommence mining operations”. Guanaceví in Durango, Bolanitos in Durango and El Compa in Zacatecas are ramping up activities to achieve normal operations.
  • Discovery Metals Corp. announced its operating and financial results for the first quarter 2020. By the end of the period Discovery had cash and cash equivalents of $20 M (Cordero, Chihuahua).
  • Minera Capela (Industrias Peñoles) reported a rock-fall that resulted in two deaths and three more casualties in Tehuixtla, Teloloapan, Guerrero.
  • GR Silver Mining Ltd. Informed that due to international logistics and delays caused by the COVID-19 pandemic, the Company is relying on the blanket relief granted by the securities regulatory authorities in Canada to postpone the filing of its Q1 2020 reports. (Plomosas, Sinaloa).
  • Aura Minerals Inc. expects it will be able to gradually and safely resume activities at Aranzazu, Zacatecas, over the next few weeks.

ON FINANCING

  • Canasil Resources Inc. granted 1.75 M incentive stock options to directors, officers, consultants and employees. David Terry has agreed to act as an advisor to Canasil’s board of directors (La Esperanza, Zacatecas).
  • Orex Minerals Inc. intends to undertake a private placement financing to raise gross proceeds of up to $2 M. “Orex intends to use the net proceeds of the Offering to maintain its 40% share of the Sandra-Escobar Project in good standing and fund its 40% share of the upcoming work program, and for general corporate and working capital purposes”.
  • Silver Tiger Metals Inc. (formerly Oceanus Resources) announced it is now trading on the OTCQB, a US interdealer quotation system. Silver Tiger’s common shares also trade on the TSX Venture Exchange under its trading symbol SLVR (El Tigre, Sonora).
  • VanGold Mining Corp. adopted a warrant acceleration bonus program for its outstanding share purchase warrants granted in connection with the company’s 2019 private placement financing (El Pinguico, Zacatecas).
  • Equinox Gold Corp. reports that from April 1 to May 25, 2020, warrants s held by various security holders have been exercised for net proceeds of approximately $145 M. “As at May 26, 2020, the Company’s cash balance is more than $480 million” (Los Filos, Guerrero).
  • Southern Silver Exploration Corp. announced that the TSX Venture Exchange has approved the extension of the expiry date of certain of the company’s outstanding common share purchase warrants for an additional two years, with the expiration date now from June 2022 to September 2022 (Cerro Las Minitas, Durango).
  • Ridgestone Mining Inc. common shares are now listed on the Frankfurt Stock Exchange, broadening the corporation’s shareholders base in Europe (Rebeico, Sonora).
  • Aztec Minerals Corp. has engaged “Commodity-TV and Rohstoff-TV for an initial three month period to assist with Aztec’s investor relations activities. Pursuant to an agreement dated May 20, 2020, Aztec will pay C&R-TV €9000 plus expenses. C&R-TV is based in Switzerland and will introduce Aztec to its European investor network” (Cerro Cervantes, Sonora).
  • Vizsla Resources Corp. entered into an agreement with Canaccord Genuity Corp. for a bought deal purchase of shares for C$4 M in gross profits (Panuco, Sinaloa).
  • DynaResources Inc. closed a financing agreement with Golden Post Rail, LLC. and with certain individual shareholders of DynaUSA. Golden Post acquired a convertible promissory note of $2.5 M, bearing interest at 10% and maturing two years from the execution date. The other purchaser acquired convertible security notes in the amount of $1.4 M, bearing interest at 10% and maturing two years from the date of issuance (San Jose de Gracia, Sinaloa).
  • Minaurum Gold Inc. closed its previously announced brokered private placement offering, for aggregate gross proceeds of $5 M (Alamos Silver, Sonora).
  • Telson Mining Corp. closed a second and final tranche of the non-brokered private placement announced on December 27, 2019, for gross proceeds of $196.6 K (Tahuehueto, Durango).
  • Golden Tag Resources Ltd. Announced a non-brokered private placement for gross proceeds of up to $1.12 M. “Subsequent to closing of the Financing, the Company will have cash balances of approximately $2.1 million, and no debt” (San Diego, Durango).
  • Solaris Resources Inc. completed a non-brokered private placement financing raising gross proceeds of C$20 M (La Verde, Michoacan).
  • Mammoth Resources Corp. announced a non brokered private placement for gross proceeds of up to $131 K (Tenoriba, Chihuahua).
  • Consolidated Zinc Ltd. announced that the fully underwritten pro-rata non-renounceable entitlements offer to raise $1.73 M on the basis on 1 new share for every 3 shares held at the record date has closed (Plomosas, Chihuahua).

ON RESOURCES AND DEVELOPMENT

  • Mexican Gold Mining Corp. announced the company will resume activities at Las Minas, Veracruz, in July of 2020, with the goal of having all the necessary inputs for a preliminary economic assessment (PEA) study completed by the end of the year. A 3,000 m drilling program has been designed to expand and upgrade the current resource at El Dorado and continue exploration at the Cinco Señores and Changarro areas. A comprehensive metallurgical study is to be elaborated, as well as an airborne LIDAR on 50 square Km to map the ground surface to 10 Cm resolution.
  • Golden Minerals Co. announced the filing on SEDAR of a preliminary Economic assessment (PEA) for its Rodeo property in Durango.
  • Bacanora Lithium PLC. updated on activities at its Sonora Lithium project in Sonora. The pilot plant in Hermosillo is to remain closed until authorities lift the Coronavirus pandemic restrictions. Completion of the flow sheet engineering will provide an engineering, procurement and construction style engineering proposal to produce downstream battery grade lithium products, is now scheduled for end of Q4, 2020. from Sonora.
  • Discovery Metals Corp. informed that to date the company has completed 17,500 m (48 holes) of its planned 30,000 to 35,000 phase 1 drill program, demonstrating near-surface higher-grade potential over a strike length of 1,250 m, intercepting multiple sulfide veins with grades over 1 kilogram silver per tonne at its Cordero project, Chihuahua.

ON DEALS AND CORPORATE ISSUES

  • Mithril Resources Ltd. has completed the acquisition of Sun Minerals Pty Ltd., which holds and exclusive option to acquire the high-grade Copalquin project in Durango. The company issued 673.85 M ordinary shares for the acquisition of all the issued capital of Sun Minerals. Mithril also issued 10 M ordinary shares and paid US$200 K to Compañía Minera Copalquin, S.A. de C.V., and issued 225 M performance rights.
  • Candente Gold Corp. informed the memorandum of understanding (MOU) the company signed with Magellan Acquisition Corp. giving Candente the right to earn up to a 100% interest in both the SDA plant and the El Dorado property, in Nayarit, has been amended such that a payment of US$5 K is being paid upon signing the revised MOU and the payment of shares upon completion of due diligence and a definitive agreement to earn 10% interest has been increased from 4 M shares to 5 M shares, all other terms remain the same. The MOU is subject to TSX Venture approval as well as due diligence and execution of a definitive agreement.
  • Sonoro Metals Corp. has published a revised version of its Cerro Caliche project development report dated May 22, 2020. As a result of a review by the British Columbia Securities Commission, Sonoro withdrew an April 28, 2020 version of this project development report as it contained certain technical disclosures that did not comply with National Instrument 43-101 standards of disclosure for mineral projects. The revised report is not a technical report as defined by NI 43-101 and has been updated to address those disclosure issues and is now available on the Cerro Caliche project page of the Company’s website.

ON SOCIAL RESPONSIBILITY

  • Minera Peña Colorada donated 1000 sets of groceries to aid the most needed families in Cuatitlán de García Barragán, Jalisco.
  • Grupo Mexico donated 23 respiratory ventilators to the State of Sonora, to be distributed mainly in the capital hospitals.
  • Fresnillo PLC donated personal medical protection equipment in Caborca, Sonora.
  • Minera Real Bonanza supports the fight against the Covid-19 menace through the Hacienda Santa Ana museum in Real de Catorce, San Luis Potosi.
  • Grupo Mexico Foundation and Fechac delivered health protection kits to hospitals in Ciudad Juárez, Chihuahua.
  • Fresnillo PLC donated a respiratory ventilator to health authorities in Durango.
  • Fresnillo PLC donated medical protection equipment to a hospital in Fresnillo, Zacatecas.
  • The mining industry in Sonora has contributed with sanitizing kits, grocery kits, medical protection sets, hospital equipment, office equipment and public spaces sanitizing. These have benefited 125,813 people with an investment of $64.6 M pesos during April and May 2020, in communities like Cananea, Caborca, La Colorada, Nacozari, Cumpas, Fronteras, Magdalena, San Javier and Esqueda.

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

On the image below: White, granular quartz-graphite vein, Hermosillo District, Sonora. Picture by Jorge Cirett.

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

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By Jorge Cirett

During the 20th week of the year (May 11th to May 17th, 2020), at least 43 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, Camimex informed 23 mining companies supported 16 States on the Coronavirus emergency. The federal government announced the inclusion of the mining industries in the list of “essential” activities that could be performed under the Coronavirus emergency, starting on 18 May 2020…. only to backtrack a few days later with the announcement that mining companies “can begin to prepare” on 18 May, to start working on 01 June, 2020. Francisco Quiroga, sub-secretary of Mining, stated that the mining industry cannot wait until 01 June, 2020, for reactivation. The Supreme Court will evaluate the impugnation against the reform by which the federal government took control of the Mining Fund. First Majestic has taken steps to sue the federal government under provision of chapter 11 of NAFTA, on grounds of double taxation.  ON EXPLORATION, in Sinaloa, Vizsla Resources released results from seven historic holes from the Plomosas Mine area at its Plomosas project. In Zacatecas, Alien Metals informed on two targets defined with the aid of IP, gravity, magnetic and geochemical surveys at its Donovan 2 property. ON MINING, Santacruz Silver, Great Panther Mining, Torex Gold, Capstone Mining, Alamos Gold, Consolidated Zinc and Newmont announced their coming back to production on 18 May 2020 (the date previously released by the government to end the mining lockdown). Fortuna Silver, Argonaut Gold, Sierra Metals, Starcore International and First Majestic released quarterly results. Excellon Resources will postpone the filing of its interim financial statements. ON FINANCING, Canuc Resources closed a financing round for $100 K., Americas Gold and Silver closed it bought deal financing for C$28.75 M. Silver Viper opened a private placement intending to raise up to C$5 M. Minaurum Gold announced a C$4.2 M financing, concurrent with the previously announced C$5 M financing. Endeavour Silver entered into an agreement to raise up to $23 M for its Terronera project. GR Silver Mining granted 1.38 M options to insiders. Starcore commenced trading on the OTCQB. Oceanus Resources is to change name to Silver Tiger Metals Inc. ON RESOURCES AND DEVELOPMENT, SilverCrest Metals released infill and expansion results on the high grade footprint of the Babi Vista vein, which by now stands at 400 m long by 200 m in height, 1 m wide, grading 20.26 gpt Au, 1,590 gpt Ag. GR Silver Mining released high-grade results from historic drill holes at its Plomosas project in Sinaloa. GoGold Resources released drill hole results from the Los Ricos South project in Jalisco. Golden Minerals filed a PEA on its Velardeña properties in Durango. Sierra Metals filed a technical report on the Bolivar mine, Chihuahua. ON DEALS AND CORPORATE ISSUES, Vizsla Resources renegotiated the terms of the Rio Panuco agreement, reducing by $4.2 M the payments to be made before early 2022. Sonoro Metals withdrew the technical report on Cerro Caliche, Sonora, as required by the British Columbia Securities Commission. Discovery Metals announced the resignation of Jose Vizquerra from the board of directors. ON SOCIAL RESPONSIBILITY. Minera San Julian, Capstone, Fresnillo PLC, Endeavour Silver, Argonaut Gold, Peña Colorada, La Cantera Desarrollos Mineros, First Majestic, Newmont and Grupo Mexico informed on donations ad work realized to aid communities, mainly on subjects related to the Coronavirus emergency, like medical supplies and equipment (even the construction of a hospital), but comprising also a large array of investments and measures that benefit the mining communities.

ON MEXICO ISSUES

  • Camimex informed 23 mining companies working in Mexico have supported 16 States in the country, with activities and donations of medical supplies to aid communities in the Coronavirus emergency. Mexico was the only country in North America that did not place mining within the essential industries to continue activities during the lockdown.
  • The Consejo de Salubridad General (General Health Council) approved four agreements for the gradual lifting of measures to fight the Coronavirus, one of which is the declaration of mining as part of the essential industries that are permitted to continue work during the Covid-19 emergency (Important.- See note below).
  • Adding to the confusion on government announcements, the sub-secretary of health prevention and promotion Hugo López Gatell informed mining, construction and automobile industries are to start activities until 01 June 2020. Most mining companies had already announced the commencement of activities on 18 May, 2020, as the mining industry had been declared essential, a term which has allowed other industries to continue activities during the Coronavirus emergency. In this twist of events, the sub-secretary said these industries can prepare for starting work on 01 June, 2020, and that further notice on physical modification of workspaces, schedules, and distance between workers, among other regulations to be announced on 18 May, 2020.
  • Francisco Quiroga, sub-secretary of Mining, stated that the mining industry cannot wait until 01 June, 2020, for reactivation. This after the Health Secretariat established a two week preparation period for re-establishment of operations. “We cannot wait to the termination of the pandemic to get back to work. In mining we return to operate adhering to strict protocols and sanitary measures: since the people leaves home until they return”.
  • The Supreme Court will evaluate (after five months wait) the impugnation against the reform by which the federal government took control of the Mining Fund. The Supreme Court also has to rule in the case of Puebla’s indigenous communities against the granting of mining concessions in their ground.
  • First Majestic Silver Corp. “has taken steps to serve the Government of Mexico with a Notice of Intent to Submit a Claim (“Notice”) under the provisions of Chapter 11 of North American Free Trade Agreement (“NAFTA”)”. The company claims the SAT (Servicio de Administración Tributaria, equivalent to the IRS in USA), has shown a strong deviation from several international treatises on double taxation. “The service of this Notice by the Company on the Government of Mexico initiates a 90-day process for the Government of Mexico to enter into good faith and amicable negotiations with the Company to resolve the current dispute”.

ON EXPLORATION

  • Vizsla Resources Corp. released drilling results from seven holes on the Honduras vein and surface and underground sampling of the Animas, Cordon de Oro and Napoleon vein corridors at its Panuco project in Sinaloa. Highlighted drill intercepts comprise 4.35 m @ 208 gpt Ag, 0.83 gpt Au (including 1.0 m @ 432 gpt Ag, 1.55 gpt Au) and 2.60 m @ 151 gpt Ag, 1.02 gpt Au (including 0.70 m @ 294 gpt Ag, 2.09 gpt Au). Highlighted surface and underground sampling results comprise: 3.2 m @ 44 gpt Ag, 16.52 gpt Au (including (1.0 m @76 gpt Ag, 38.20 gpt Au); 11.90 m @ 140 gpt Ag, 1.67 gpt Au (including 2.90 m @ 249 gpt Ag, 3.84 gpt Au); 4.20 m @ 230 gpt Ag, 3.13 gpt Au (including 1.20 m @ 655 gpt Ag, 10.15 gpt Ag).
  • Alien Metals Ltd. informed excellent targets have been generated at its Donovan 2 project in Zacatecas, from an IP survey, coincident with previous geophysical and sampling results. The two stronger targets comprise the North zone prospect known as Cerro de la Cruz where ground magnetics, gravity and IP geophysics all returned coincident anomalies and the Central prospect known as Los Alomos where historical anomalous rock samples and the ground IP geophysics returned coincident anomalies.

ON MINING

  • Fortuna Silver Mines Inc. released financial results for the first quarter of 2020, without elaborating on figures from its Mexican operations. “As at March 31, 2020, the Company had $88.5 million of cash and cash equivalents…. and the company’s $150 M bank credit facility had been fully drawn”. AISC per silver ounce in the San Jose mine in Oaxaca was $10.70.
  • Argonaut Gold Inc. released its operating and financial results for the first quarter of 2010, including figures from its Mexican operations. The El Castillo Complex in Durango produced 28,508 Oz AuEq at a cash cost of $941, with 5.28 M tonnes of waste moved and 5.63 M tonnes of ore mined and 4.68 M tonnes placed on the heaps @ 0.44 gpt Au, producing 27,270 Oz Au, 99 K Oz Ag. La Colorada in Sonora produced 13,028 Oz AuEq at a cash cost of $1,021 per Oz Au, with 4.68 M tonnes of waste moved, and 947 K tonnes of ore mined and 966 K tonnes loaded to the leach pads @ 0.35 gpt Au, producing 13,028 Oz Au, 54.2 K Oz Ag. The company is preparing to restart activities at its two operating units as restrictions to work on the Coronavirus emergency ease.
  • Sierra Metals Inc. presented consolidated results for the first quarter of 2020. The Bolivar Mine processed a record 377.5 K tonnes in Q1 2020, representing a 43% increase over Q1 2019. Copper represents 40% of Sierra Metals’ revenue in Q1 2020, as the Company is trending towards copper as its main product as a percentage of revenue. During the period 8,048 m were drilled at Bolivar, Chihuahua, whereas at Cusi, also in Chihuahua, 2,172 m were drilled. The company held 36.9 M in cash and cash equivalents by the end of the period, with $49.2 M in working capital.
  • Starcore International Mines Ltd. announced production results for the fourth quarter of fiscal year 2019, ended April 30, 2020, at its San Martin mine in Queretaro. During the quarter 56.k tonnes were milled @ 1.65 gpt Au, 25.3 gpt Ag, recovering 88.7% Au, 55.8% Ag, to produce 2,925 Oz AuEq.
  • Santacruz Silver Mining Ltd. commenced preparations to resume mining and milling operations at the Zimapan mine in Hidalgo on May 19, 2020.
  • Great Panther Mining Ltd. intends to restart operations in Mexico this month in accordance with the Mexican federal government’s announcements of the lifting of restrictions that have suspended mining operations in the country since the start of April (Topia, Durango).
  • Excellon Resources Inc. will postpone the filing of its interim financial statements and management’s discussion and analysis for the first quarter of 2020, relying on the blanket relief granted by Ontario Instrument 51-502, which provides for up to a 45-day extension for periodic filings (Platosa, Durango).
  • Fortuna Silver Mines Inc. presented first quarter 2020 results. At San José, in Oaxaca, 246.8 K tonnes were milled, averaging 2,837 tonnes per day (tpd) @ 216 gpt Ag, 1.33 gpt Au, with recoveries of 92% Ag, 91% Au, to produce 1.57 M OZ Ag, 9,630 Oz Au at production cash cost $7.50 per Oz Ag and AISC $10.70 per Oz Ag.
  • First Majestic Silver Corp. announced consolidated financial results for the first quarter 2020. Restart procedures are being taken after the announcement of the lifting of the Coronavirus emergency for mining companies, to start work by 18 May, 2020. The company ended the quarter with $145.2 M in cash and cash equivalents.First Majstic Q1 production1
  • Torex Gold Resources Inc. plans to resume full production at its El Limón Guajes mining complex in Guerrero by the end of this month, following the designation of mining as an essential activity by the government.
  • Capstone Mining Corp. announces it has safely started ramping up operational activities at its Cozamin mine in Zacatecas, following the Mexican federal government announcement on May 12, 2020 that mining is an essential industry.
  • Alamos Gold Inc. expects to begin ramping up full operations at its Mulatos mine in Sonora on May 18, 2020. Following the Mexican government’s declaration of mining as an essential activity.
  • Consolidated Zinc Ltd. advised that the Mexican Government has instructed that all mining is to be considered an essential service, allowing the Plomosas mine and Aldama concentrator to re-commence operations from 18 May 2020. It is expected the ramp up back to full production will be completed by the end of May.
  • Newmont Corp. expects to begin safely ramping up operations at Peñasquito in Mexico on May 18 following the government’s designation of mining as an essential activity. “On April 22, Peñasquito reached a definitive agreement with the San Juan de Cedros community (one of 25 neighboring communities) in Zacatecas, Mexico on land use, water availability, infrastructure and social investments. This includes access to 10,000 hectares for exploration and operational purposes, and resolves all outstanding issues with the community. The agreement was reached with the support of Mexico’s Ministry of Interior (SEGOB) and representatives of the State of Zacatecas and was signed by elected representatives of the Cedros community. The agreement is expected to be ratified in a General Assembly once COVID-19 restrictions on gatherings are lifted by the government. The agreement expressly states that any future disputes will be resolved through dialogue and free of blockades”.

ON FINANCING

  • Canuc Resources Corp. closed a non-brokered private placement for gross proceeds of $100 K (San Javier, Sonora).
  • Starcore International Mines Ltd. announced its shares have been approved to commence trading on the OTCQB. “This listing on the OTCQB compliments the Company’s listings on the Toronto Stock Exchange and the Frankfurt Stock Exchange” (San Martin, Queretaro).
  • Americas Gold and Silver Corp. closed its previously announced bought deal financing with a syndicate of underwriters co‐led by Cormark SecuritiesInc. and Desjardins Capital Markets for aggregate gross proceeds of C$28.75 M (Cosalá, Sinaloa).
  • Consolidated Zinc Ltd. has established an on-line application for shareholders to subscribe for the new shares under the Entitlement Offer 23 April 2020 (Plomosas, Chihuahua).
  • Silver Viper Minerals Corp. entered into a letter of engagement with Eight Capital and Red Cloud Securities Inc. for a private placement aiming to raise C$5 M in gross proceeds (La Virginia, Sonora).
  • GR Silver Mining Ltd. granted incentive stock options to certain directors, officers, and consultants to purchase up to an aggregate of 1.38 M shares of the Company (Plomosas, Sinaloa).
  • Minaurum Gold Inc. announced that, concurrent with its C$5 M marketed private placement announced on May 4, 2020, the company has agreed to issue up to a further 10.5 M units to raise additional C$4.2 M in gross proceeds (Alamo Silver, Sonora).
  • Endeavour Silver Corp. entered into a sales agreement with BMO Capital Markets, CIBC Capital Markets, H.C. Wainwright & Co., TD Securities, Roth Capital Partners, B. Riley FBR and A.G.P., to sell common shares to raise gross proceeds of up to $23 M. No offers of sales of common shares will be made on the TSX or other trading markets in Canada. Net proceeds will be used to advance its Terronera project in Jalisco.
  • Mithril Resources Ltd. advised that its 1 for 1 Non-Renounceable Rights Issue closed at 5:00pm on 14 May 2020 (Copalquin, Durango).
  • Oceanus Resources Corp. announced that it is changing its name to Silver Tiger Metals Inc. on the TSX Venture Exchange. The company also announced a non-brokered private placement to raise up to $675 K (El Tigre, Sonora).

ON RESOURCES AND DEVELOPMENT

  • SilverCrest Metals Inc. is to restart exploration and development work at its Las Chispas Project in Sonora by mid-May, using strict COVID-19 protocols. The company also released in-fill and expansion drill results for the BaBi Vista vein at Las Chispas. The updated high-grade footprint is 400 m along vein strike by 200 m in height, grading 20.26 gpt Au and 1,590 gpt Ag over an average true width of 1.0 m, and open in most directions. Highlighted results from the last drill holes comprise true width intervals of 0.6 m @ 3.29 gpt Au, 216 gpt Ag; 0.9 m @ 12.44 gpt Au, 1,103 gpt Ag; 0.6 m @ 1.17 gpt Au, 93 gpt Ag; 0.4 m @ 2.0 gpt Au, 232 gpt Ag; 1.8 m @ 78.83 gpt Au, 5,235 gpt Ag; 0.4 m @ 3.12 gpt Au, 302 gpt Ag; 0.4 m @ 2.05 gpt Au, 148 gpt Ag; 0.4 m @ 4.72 gpt Au, 401 gpt Ag.
  • GR Silver Mining Ltd. reported high-grade drill results at its Plomosas project in Sinaloa. The results are from holes in the Plomosas mine area, drilled by previous operators of the property. Highlighted true width (TW) intervals comprise 1.74 m @ 118 gpt Ag, 30.64 gpt Au, 0.1% Pb, 0.1% Zn; 1.30 m @ 4.75 gpt Au; 4.23 m @ 57 gpt Ag, 1.35 gpt Au, 3.7% Zn, 3.3% Pb; 3.13 m @ 31 gpt Ag, 4.54 gpt Au, 5.8% Zn, 5.2% Pb; 4.96 m @ 52 gpt Ag, 2.60 gpt Au; 0.7% Zn, 3.1% Pb; 0.98 m @ 850 gpt Ag, 0.14 gpt Au, 0.8% Zn, 1.2% Pb; 14.09 m @ 185 gpt Ag, 0.07 gpt Au, 0.6% Zn, 0.8% Pb; 2.70 m @ 240 gpt Ag, 0.05 gpt Au, 0.9% Zn, 1.6% Pb; 3.42 m @ 240 gpt Ag, 0.05 gpt Au, 1.0% Zn, 1.6% Pb; 4.28 m @ 760 gpt Ag, 2.3% Zn, 1.5% Pb; 12.15 m @ 225 gpt Ag, 0.43 gpt Au, 3.0% Zn, 3.6% Pb; 1.45 m @ 1,659 gpt Ag, 0.19 gpt Au, 1.2% Zn, 3.7% Pb; 1.93 m @ 96 gpt Ag, 4.11 gpt Au, 0.8% Zn, 5.9% Pb.
  • GoGold Resources Inc. released assay results from 15 diamond drill holes at the Los Ricos South project in Jalisco. Highlighted core length intervals comprise 14.6 m @ 1.64 gpt Au, 136 gpt Ag; 15.7 m @ 0.52 gpt Au, 22 gpt Ag; 18.0 m @ 0.65 gpt Au, 85 gpt Ag; 19.0 m @ 0.89 gpt Au, 208 gpt Ag (including 5.4 m @ 2.28 gpt Au, 559 gpt Ag and 3.2 m @ 3.13 gpt Au, 858 gpt Ag); 11.5 m @ 0.86 gpt Au, 61 gpt Ag.
  • Golden Minerals Co. announced the filing on SEDAR of a preliminary economic assessment (PEA) and accompanying technical report for its Velardeña properties in Durango.
  • Sierra Metals Inc. filed a 43-101 compliant technical report on the Bolivar mine in Chihuahua. “There are no material differences in the Report from those results disclosed in the Company’s press release dated March 31, 2020”.

ON DEALS AND CORPORATE ISSUES

  • Vizsla Resources Corp. renegotiated the terms of the Rio Panuco option agreement, extending it for one more year. The Silverstone option period has been extended into 2022 and the total Panuco mining district option payments between now and the beginning of 2022 will be reduced by over USD$4.1 M, from USD$5.63 M to USD$1.48 M. The total Panuco and Silverstone agreement is for USD$43.08 M in seven years.
  • Sonoro Metals Corp. withdraws Cerro Caliche project development report filed on April 28, 2020, as a result of a review by the British Columbia Securities Commission. “The Company is amending the Report to correct problematic technical disclosures, and expects to publish a revised version in the next week” (Cerro Caliche, Sonora).
  • Discovery Metals Corp. announced that Mr. Jose Vizquerra has resigned as a director of the company to focus on other professional commitments (Cordero, Chihuahua).

ON SOCIAL RESPONSIBILITY

  • Minera San Julián (Fresnillo PLC), donated 20 tonnes of non-perishable food to the community of Guadalupe y Calvo, Chihuahua, as well as 2,300 face masks.
  • Capstone has donated approximately $150,000 pesos in Hacienda Nueva, Zacatecas. Food supplies and sanitizers are among the articles delivered.
  • Fresnillo PLC is to finish construction of the Covid-19 Hospital, in Fresnillo, Zacatecas by the end of May.
  • Fresnillo PLC donates medical equipment to the IMSS and General Hospital in Caborca, Sonora. The supplies include face masks, disinfectant gel and N95 face masks.
  • Endeavour Silver informed that during 2019 70% of all training involved safety education; received the “Caso de Plata” safety award at Guanacevi, Durango; Completed an average of 47 hours of training for each employee; supported 118 students with scholarships; sponsored several events to engage with over 1,000 locals in communities near Terronera, in Jalisco; fully funded a multi-use recreational facility for El Cubo community; planted 51,000 trees in reforestation projects and paid $5 M in various taxes.
  • Argonaut Gold Inc. informed it has delivered its 3,000th academic scholarship in Mexico, has initiated a local program with the community of Cerro del Gallo for the cleaning of the San Antón de las Minas River in Guanajuato, provided 150 food support pantries for families in San Juan del Rio in Durango and held the opening ceremony for the Argonaut Community House in La Colorada, Sonora, a center that the company donated to the community that is open for local stakeholders to interact with Argonaut team members and attend courses.
  • Peña Colorada donated 1,000 lab coats for doctors and 1,000 K95 face masks in Colima.
  • La Cantera Desarrollos Mineros installed the community lunch room in the El Encino neighborhood, in Guanajuato. The objective, partnering with the Municipality, is to assist the most needed with food supplies during the Coronavirus emergency; more than 60 families were serviced on the first day of operation.
  • First Majestic delivered 900 health sets to inhabitants of Tayoltita, Durango.
  • Newmont and the Zacatecas State signed an agreement to fight Covid-19. The company already has an integrated plan accepted by the Mining Sub-Secretariat, with a health perimeter and a protocol to follow should a Covid-19 positive case presents in the area. More than 24 tonnes of food has been delivered to persons in need on 25 communities, and Mx$5.25 M have been invested in the strengthening of hospital capacity; furthermore, 500 Covid-19 test kits were donated to the Health Secretariat and ventilators and screens are to be delivered to the desert health clinics.
  • Grupo Mexico and Cemza donate medical equipment in Campeche. The two groups donated medical equipment and supplies to the General Hospital “María del Socorro Quiroga Aguilar”.

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

On the image below: Quartz-graphite vein, Hermosillo District, Sonora. Picture by Jorge Cirett.

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