Highlights on the Second Week of December, 2018. Mining and Exploration News in Mexico

Mesothermal quartz vein.

By Miguel A Heredia

During the 49th week of the year (December 3rd to November 25th, 2018), at least 15 press releases were announced by companies working in Mexico, with seven informing on exploration results, four reporting on advances on their properties, four disclosing deals and corporate issues, and one communicating production results. ON MEXICO ISSUES, no relevant news. ON EXPLORATION, In Sonora, Colibri announced plans to conduct a structural geology interpretation on its El Pilar project, Mexus Gold completed a drill program on its Santa Elena project, and Sonoro reported drill results from its Cerro Caliche project.  In Chihuahua, Radius Gold and its partner Pan American Silver announced drill results from its Amalia project, and Mammoth provided an update on exploration activities from its Tenoriba project. In Zacatecas, Advance Gold provided an update on exploration plans for its Tabasquena project. In Jalisco, Evrim reported drill results from its Cuale project.  ON MINING, US Antimony reported Sb monthly production from their Mexican operations. ON FINANCING, no relevant news. ON RESOURCES AND DEVELOPMENT, Colibri clarified its resource estimation at its El Pilar project in Sonora. Avino released drill results from its Avino open pit mine area in Durango. Gold Resource announced drill results and expanded its Arista mine in Oaxaca. US Antimony announced an update on the leach plant for the Los Juarez Au-Ag-Sb property in Queretaro.  Minera Alamos provided a year-end development update on its Santana project in Sonora. ON DEALS AND CORPORATE ISSUES, Candelaria acquired the remaining 40% ownership of its Pinos property in Zacatecas. Colibri announced its intention to sell its Pitaya property interest in Sonora. Mexican Gold acquired 100% interest in three concessions at its Las Minas project in Veracruz. Radius announced its intention to issue shares for its Amalia project option payment.

ON MEXICO ISSUES

  • No relevant news.

ON EXPLORATION

  • Colibri Resource Corporation, announced that a structural geology interpretation will be conducted on its El Pilar project in Sonora to generate targets to drill-test.
  • Mexus Gold US, completed 736m of core drilling in 9 holes at its Santa Elena project in Sonora. 200 core samples were collected and sent to the lab for assays. Assay results are pending and will provide the guide for the next exploration stage toward locating a potential low angle shear zone Au and Ag resource.
  • Sonoro Metals Corp., reported drill results from 17 holes and expanded mineralization at its Cerro Caliche project in Sonora. Significant intersections are in Hole SCR-014 with 21.33m of 0.44 g/t Au and 4 g/t Ag; Hole SCR-015 with 10.67m of 0.51 g/t Au and 1 g/t Ag, and 19.81m of 0.35 g/t Au and 2 g/t Ag; Hole SCR-021 with 32m of 0.55 g/t Au and 11 g/t Ag, including 3.05m of 2.13 g/t Au and 65 g/t Ag; Hole SCR-019 with 19.81m of 0.52 g/t Au and 7 g/t Ag; Hole SCR-022 with 13.71m of 0.75 g/t Au, and 14 g/t Ag; Hole SCR-029 with 9.14m of 0.86 g/t Au and 6 g/t Ag and 15.24 m of 0.72 g/t Au and 4 g/t Ag; Hole SCR-024 with 13.72m of 0.68 g/t Au and 11 g/t Ag, including 4.57m of 1.5 g/t Au and 24 g/t Ag; and Hole SCR-030 with 22.86m of 0.72 g/t Au and 3 g/t Ag, including 10.67m of 1.26 g/t Au and 3 g/t Ag.
  • Radius Gold Inc., and Pan American Silver, announced initial drill results from its Amalia project in Chihuahua. 1,909m in 9 holes were drilled by Radius and tested three target zones: Campamento-San Pedro, Guadalupe and Dulces across a strike length of 1.8Km following the trace of a large regional fault and associated epithermal Au and Ag mineralization. Significant intersections encountered at the Campamento-San Pedro target area are in Hole AMDD18-003 with 30m of 0.3 g/t Au and 65 g/t Ag; Hole AMDD18-08 with 1m of 2.28 g/t Au and 521 g/t Ag and 5m of 0.59 g/t Au and 571 g/t Ag; and Hole AMDD18-09 with 26m of 7.08 g/t Au and 517 g/t Ag, including 5m of 14.71 g/t Au and 1,378 g/t Ag. Mineralization at the Campamento target is open in all directions. At Guadalupe and Dulces target zones none significant drill intersections were encountered.
  • Mammoth Resources Corp., provided an update on exploration activities developed during the period 2017-2018 at its Tenoriba project in Chihuahua. Mammoth vacated the property in late June until early October due to the rainy season. Geologist returned to the field to sample gaps in the drill core between intervals of reported mineralization which had not previously been sampled and to perform maintenance on roads in and around the project area following the seasonal rains. The company run IP and Magnetic geophysical surveys to cover approximately 40% of the property. Based on geophysical features, surface geology and geochemistry sampling results, Mammoth drilled 2,705m in 13 holes in the period 2017-2018 to test numerous targets. Significant drill intersections were encountered in 9 out of 11 holes reported. Based on previous results the company has decided to cover with IP and Magnetic geophysical surveys the remaining 60% of the property to define areas for future drilling and also to perform additional drilling to test the porphyry potential in the El Moreno-Cerro Colorado areas.
  • Advance Gold Corp., provided an update on exploration plans on its Tabasquena project in Zacatecas. Advance is exploring for a large epithermal vein system and plans to drill-test a feeder system type target named SG3.
  • Evrim Resources Corp., reported initial drill results from its Cuale project in Jalisco. A total of 1,167m have been completed of a planned 3,000m program. Evrim released assay results from four of the five drill holes targeting the La Gloria prospect with the most significant results in Hole GLR18-01 with 14m of 1.92 g/t Au and another deeper interval with 10.2m of 1.58% Cu; Hole GLR18-02 with 17m of 0.52 g/t Au; and Hole GLR18-03 with 29m of 0.87 g/t Au. The company has moved the rig near the North Dome target to drill-test additional targets.

ON MINING

  • US Antimony Corporation, reported that 160.8K Lb Sb were produced during November, 2018 from their Mexican operations (Soyatal, Queretaro and Wadley, San Luis Potosi).

ON FINANCING

  • No relevant news.

 ON RESOURCES AND DEVELOPMENT

  • Colibri Resource Corporation, clarified its resource estimation at its El Pilar project in Sonora. The company had released previously an in-house resource calculation of 700,000 tonnes of 1.9 g/t Au but it included historical drill holes reported by a previous operator, whereby this estimation is not NI 43-101 compliant and should not be relied upon.
  • Avino Silver & Gold Mines Ltd., released results from 11 holes drilled on the Avino vein stockwork system at its Avino open pit mine in Durango. 924.65m were drilled at the western end of the open pit in an area called El Hundido. Significant results are in Hole ET-18-03 with 05m of 0.03 g/t Au, 93 g/t Ag,  and 0.15% Cu, including 8.40m of 0.01 g/t Au, 325 g/t Ag, and 0.22% Cu; Hole ET-2018-04 with 3.95m of 1.47 g/t Au, 323 g/t Ag, and 0.30% Cu; Hole ET-2018-11 with 18.85m of 0.62 g/t Au, 84 g/t Ag, and 0.15% Cu, including 4.15m of 0.6 g/t Au, 144 g/t Ag, and 0.07% Cu and 1.25m of 2.81 g/t Au, 344 g/t Ag, and 1.69% Cu; and Hole Et-2018-12 with 1.10m of 0.60 g/t Au, 408 g/t Ag, and 1.88% Cu and other interval with 21.05m of 0.35 g/t Au, 79 g/t Ag, and 0.58% Cu, including 5.25m of 0.53 g/t Au, 155 g/t Ag, and 0.85% Cu, and 4.55m of 0.76 g/t Au, 121 g/t Ag, and 1.40% Cu. Based on these encouraging results, the company is adding easily accessible mineable resources.
  • Gold Resource Corporation, released drill results from the Switchback vein system as well as from a newly discovered mineralized veins at a target called Andesite Hill. These results extend the strike length by approximately 100m to the northwest and expand the vertical extent in depth and height at its Arista mine in Oaxaca. Significant results at the Switchback vein system are in Hole 518013 with 4.17m of 4.17 g/t Au, 63 g/t Ag, 0.68% Cu, 0.8% Pb, and 1.5% Zn, including 1.25m of 7.45 g/t Au, 102 g/t Ag, 0.63% Cu, 1.1% Pb, and 1.8% Zn; and Hole 518020 with 16.95m of 6.21 g/t Au, 80 g/t Ag, 0.52% Cu, 1.8% Pb, and 4.5% Zn, including 2.2m of 9.28 g/t Au, 81 g/t Ag, 0.87% Cu, 2.0% Pb, and 8.9% Zn, and including 1.3m of 25.1 g/t Au, 244 g/t Ag, 0.91% Cu, 2.4% Pb, and 5.1% Zn. Highlights at the Andesite Hill target are in Hole 518010 with 1.13m of 0.46 g/t Au, 77 g/t Ag, 0.35% Cu, 2.2% Pb, and 4.1% Zn and 0.48m of 1.42 g/t Au, 342 g/t Ag, 0.11% Cu, 0.3% Pb, and 0.3% Zn; and Hole 518011 with 0.30m of 5.47 g/t Au, 2,510 g/t Ag, 0.58% Cu, 0.8% Pb, and 1.6% Zn, and 2.29m of 4.01 g/t Au, 580 g/t Ag, 0.36% Cu, 3.8% Pb, and 5% Zn, including 0.72m of 5.89 g/t Au, 739 g/t Ag, 0.32% Cu, 1.7% Pb, and 7% Zn.
  • US Antimony Corporation, announced an update on the leach plant for the Los Juarez Au-Ag-Sb property in Queretaro, reporting that most of the equipment for the Puerto Blanco Plant is being installed at the Puerto Blanco Mill. Projects underway include finishing the tailings pond, wiring, plumbing, and completing the building.
  • Minera Alamos Inc., provided a year-end development update on its Santana project in Sonora. The company mined from Nicho Norte 50K tonnes of mineralized material to run heap leach tests to evaluate grades, recoveries, reagent consumptions, etc. Minera Alamos also reported that the Phase 1 drill program was successful on the Nicho Main Area where the holes intersected significant intervals including 127m of 0.81 g/t Au, 80.4m of 1.05 g/t Au, and 93.5m of 0.65 g/t Au. It also discovered the Divisadero porphyry target located approximately 200m north of the Nicho Norte Zone where a drill hole intersected 95.7m of 0.85 g/t Au, 10 g/t Ag and 0.33% Cu.   A Phase 2 drill program will commence shortly to follow-up on new discoveries made at Santana. Minera Alamos has been active in developing a strategy that allows them to take a decision to develop and construct the mine in Q1 2019 if the results are positive.

ON DEALS AND CORPORATE ISSUES

  • Candelaria Mining Corp., acquired the remaining 40% ownership of its Pinos project in Zacatecas by issuing 7,075,472 common shares to Minera Apolo S.A. de C.V.
  • Colibri Resource Corporation, entered in an agreement with Agnico Eagle Mines Limited to sell its Pitaya project interest in Sonora. Considerations in connection with the sale transaction could be paid by one of more third parties in cash or securities or a combination of cash and securities with Colibri receiving its proportionate share or paid by a lump sum cash payment from Agnico in the amount of $500K.
  • Mexican Gold Corp., acquired 100% interest in the Pepe, Pepe Tres and San Jose concessions at its Las Minas project in Veracruz by making a final payment of US$ 866,666. The owners will retain a 1.5% NSR of which one third may be purchased by US$ 500K at any time. Mexican Gold also has a right of first refusal in the event that the owners intend to transfer all or part of the remaining 1% royalty.
  • Radius Gold Inc., announced its intention to issue 74, 183 common shares to the project owners in accordance of its option to acquire a 100% interest of the Amalia property in Chihuahua. The shares will be issued at a deemed price of $0.90 per share.

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

On the picture above, a mesothermal quartz vein in an Au orogenic prospect in Oaxaca, Mexico.  Photo by Miguel A Heredia.

Santacruz Silver Reports Third Quarter 2018 Financial Results

2018-11-30_NR_SCZ_V9ruJYQh

Vancouver, B.C. — Santacruz Silver Mining Ltd. (TSX.V:SCZ) (the “Company” or “Santacruz”) reports on the operating and financial results from the Veta Grande Project in Zacatecas, Mexico and the Rosario Project in San Luis Potosi, Mexico for the third quarter of 2018. The full version of the financial statements and accompanying management’s discussion and analysis can be viewed on the Company’s website at www.santacruzsilver.com or on SEDAR at www.sedar.com.  All amounts are in thousands of US dollars unless otherwise indicated.

LEAGOLD ANNOUNCES Q3 2018 RESULTS AND AISC MARGIN OF $22.1 MILLION

Leagold_nr_20181114

Vancouver, November 14, 2018 – Leagold Mining Corporation (TSX:LMC; OTCQX:LMCNF) (“Leagold” or the “Company”) reports third quarter financial and operating results for its four wholly owned gold mines: the Los Filos mine in Mexico, and the RDM, Fazenda, and Pilar mines in Brazil. Consolidated gold production during the period totalled 93,269 ounces (oz) at all-in sustaining costs (AISC) of $966 per oz sold, resulting in an AISC margin of $22.1 million.

SIERRA METALS REPORTS CONSOLIDATED FINANCIAL RESULTS INCLUDING $18.1 MILLION OF OPERATING CASH FLOWS BEFORE MOVEMENTS IN WORKING CAPITAL FOR THE THIRD QUARTER OF 2018

Sierra-Metals-Reports-12112018

TORONTO, Nov. 12, 2018 /PRNewswire/ – Sierra Metals Inc. (TSX:SMT)(BVL:SMT)(NYSE American:SMTS) (“Sierra Metals” or the “Company”) today reported revenue of $53.0 million and adjusted EBITDA of $18.2 million on throughput of 566,194 tonnes and metal production of 4.5 million silver equivalent ounces, 23.6 million copper equivalent pounds, and 57.9 million zinc equivalent pounds for the three month period ended September 30, 2018.

Highlights on the Second Week of November, 2018. Mining and Exploration News in Mexico

Banded quartz texture

By Miguel A Heredia

During the 45th week of the year (November 5th to November 11th, 2018), at least 36 press releases were announced by companies working in Mexico, with thirteen communicating mining activities, seven disclosing deals and corporate issues, seven informing on exploration results, six announcing financing issues, and 3 reporting on advances on their properties. ON MEXICO ISSUES, no relevant news.  ON EXPLORATION, In Sonora, Aloro commenced the road construction and building of drill pads on its Los Venados project, San Marco Resources announced the commencement of a drilling program at its Chunibas project, Sonoro reported drill results from its Cerro Caliche project, and Minaurum discovered two new vein zones at its Alamos Silver project. In Coahuila, Discovery Metals completed a 40 line-km ground magnetometer survey at its Monclova project.  ON MINING, Alio Gold, Americas Silver, Argonaut, Avino, Consolidated Zinc, First Majestic, Fortuna Silver, Hecla, Pan American Silver, Premier Gold, Santacruz Mining, and US Antimony reported production results from their Mexican operations. ON FINANCING, Auxico Gold closed a non-brokered private placement for $315K. GoGold closed the US$12M sale of the Santa Gertrudis royalty with Metalla Royalty and Streaming Ltd. Impact Silver announced a non-brokered private placement to raise up to $1.5M. Telson Mining received $5M from Trafigura Mexico for the second tranche of the loan agreement announced on December 18, 2017. Silver Spruce consolidated its common shares and proposed to complete a non-brokered private placement to raise up to $1.5M. Golden Minerals reported its Q3 2018 financial results. ON RESOURCES AND DEVELOPMENT, Kootenay designed a drilling program aimed to expand resources at its la Cigarra deposit in Chihuahua. Hecla released in-fill drilling results for its San Sebastian mine in Durango. ON DEALS AND CORPORATE ISSUES, Capstone Mining made reductions to its organizational structure (Cozamin mine, Zacatecas). Defiance Silver and ValOro Resources signed a definitive merger agreement (San Acacio project, Zacatecas). Golden Goliath announced that Desarrollos Mineros El Aguila (subsidiary of Fresnillo plc) exercised the option agreement on its Uruachic project in Chihuahua. New Gold (Cerro San Pedro mine, San Luis Potosi) and Prize Mining (Manto Negro project, Coahuila) appointed their Chief Financial Officer respectively. Golden Reign and Marlin Gold completed business combination to form Mako Mining Corp (La Trinidad mine, Sinaloa).

ON MEXICO ISSUES

No relevant news.

ON EXPLORATION

  • Aloro Mining Corp., commenced a 3.6km road construction and building of 12 permitted drill pads at its Los Venados project in Sonora. “The road construction will open up new exposures for sampling in mineralized areas and structure that were previously undercover”.
  • San Marco Resources, commenced a drilling program at its Chunibas project in Sonora where they have a JV agreement with Antofagasta plc. The drilling program will consists of initial 1,500m comprised in six holes with the goal of testing down dip and along strike high-grade Cu-Ag mineralized mantos hosted in volcanic rocks in different stratigraphic levels. The manto-type mineralization has been identified along a corridor of 1.7km long and at least 300m wide.
  • Sonoro Metals Corp., reported results from the initial 13 drill holes from its Cerro Caliche project in Sonora. Significant intersections are: Hole SCR-002 with 27.43m of 0.6 g/t Au and 7 g/t Ag; Hole SCR-003 with 30.48m of 0.5 g/t Au and 8 g/t Ag; Hole SCR-004 with 39.62m of 0.9 g/t Au and 9 g/t Ag, including 6.09m of 2.9 g/t Au and 20 g/t Ag; Hole SCR-005 with 10.67m of 0.7 g/t Au and 21 g/t Ag, and 10.67m of 0.6 g/t Au and 1 g/t Ag; Hole SCR-006 with 10.67m of 1.2 g/t Au and 21 g/t Ag, including 6.1m of 2 g/t Au and 26 g/t Ag; Hole SCR-007 with 22.86m of 0.9 g/t Au and 13 g/t Ag, including 4.57m of 2.2 g/t Au and 20 g/t Ag; and SCR-008 with 36.58m of 0.5 g/t Au and 4 g/t Ag. “The drilling has further confirmed that mineralization in the Los Japoneses zone remains open in all directions, including at depth.”
  • Minaurum Gold Inc., discovered two new vein zones at its Alamos Silver project in Sonora: the San Jose vein, a NNE trend structure hosted in a fault zone which can be traced for at least 3km long, and the Santa Rosa vein, a stringer-quartz veinlets structural zone that runs for at least 300m along strike. The discovery of the new veins was through its ongoing district-scale reconnaissance program. Sampling on the San Jose vein returned grades ranging from anomalous up to 1,995 g/t Ag, 2.5% Cu, and 1.9% Zn, while sampling on the Santa Rosa vein only retuned anomalous values.
  • Discovery Metals Corp., completed a 40 line-km ground magnetic survey at its Monclova project in Coahuila to cover three targets: Real Viejo with 23 lines spaced 50m apart, Corrales with 17 lines spaced 100m apart, and Soledad with 12 lines spaced 50m apart. “Results of the Real Viejo survey highlight a linear magnetic high parallel to the mapped mineralized and altered zone along the southern boundary of the Monclova intrusive complex centered on the Project. This suggests continuity of the alteration and/or mineralization along the contact and provides support for the holes planned to test this zone. Interestingly, similar magnetic high zones occur across the neighboring Corrales target. Both linear magnetic highs as well as linear lows are highlighted by the survey and represent prospective targets on the Project. Results at the northern Soledad grid also highlight similar geometries”.

ON MINING

  • Alio Gold Inc., reported Q3 production results from its San Francisco mine in Sonora. Alio produced 11.6K Oz Au and 3.9K Oz Ag at an AISC of $1,315 per Oz produced.
  • Americas Silver Corporation, produced 323K Oz Ag, 7.5M Lb Pb, and 7.9M Lb Zn during the Q3-2018 from its Cosala operations in Sinaloa and Galena Complex in Idaho.
  • Argonaut Gold Inc., announced Q3 2018 production results from their Mexican operations. At the El Castillo mine in Durango, Argonaut mined 2, 267,000 tonnes of 0.33 g/t Au, to produce 10.3K Oz Au and 4.8K Oz Ag (10.4K GEOs or Gold Eq Oz). At the San Agustin mine in Durango, the company mined 1, 747,000 tonnes of 0.34 g/t Au to produce 15.7K Oz Au and 52.9K Oz Ag (16.5K GEOs). At its La Colorada mine in Sonora, Argonaut mined 1.2M tonnes of 0.33 g/t Au to produce 7K Oz Au and 16.2K Oz Ag (7.3K GEOs).
  • Avino Silver & Gold Mines Ltd., milled 193, 645 tonnes during Q3 2018 to produce 2.2K Oz Au, 342K Oz Ag, and 992K Lb Cu (704.4K Oz Ag Eq) at an AISC of $11.15 per payable Oz Ag Eq.
  • Consolidated Zinc Limited, reported the October 2018 production from its Plomosas mine in Chihuahua. The company milled 237 tonnes of 12.9% Zn and 3.3 % Pb to produce 68.3K Lb Zn and 17.6K Lb Pb.
  • First Majestic Silver Corporation, released Q3 2018 production results from their Mexican operations. The table below shows the quarterly operating and cost parameters at each of the mining operations:

  • Fortuna Silver Mines Ltd., milled 262, 710 tonnes during Q3 2018 at grades of 1.6 g/t Au and 258 g/t Ag to produce 12.4K Oz Au and 1.99M Oz Ag, with metallurgical recoveries of 91% for Au and Ag.
  • Hecla Mining Company, released Q3 production results from its San Sebastian mine in Durango. During Q3 2018, Hecla produced 3.7K Oz Au and 522K Oz Ag.
  • Pan American Silver Corp, reported Q3 2018 production results from each of their mining operations. At La Colorada, Zacatecas the company produced 1.1K Oz Au and 2M Oz Ag. At its Dolores mine in Chihuahua, Pan American Silver produced 33.1K Oz Au and 1M Oz Ag.
  • Premier Gold Mines Limited, announced Q3 2018 production results from its Mercedes mine in Sonora. The company processed 159,608 tonnes of 3.52 g/t Au and 39 g/t Ag with metallurgical recoveries of 96.6% and 43.7% respectively, to produce 17.5K Oz Au and 88.4K Oz Ag at an AISC of $1,059 per Oz produced.
  • Santacruz Silver Mining , released Q3 2018 production results from their Mexican mining operations.  At Veta Grande, Zacatecas, the company processed 42,011 tonnes with 0.26 g/t Au, 77 g/t Ag,  0.8% Pb and 1.94 % Zn to produce  140 Oz Au, 62.2K Oz Ag, 590.8K Lb Pb and 952.4K Lb Zn. At El Rosario, San Luis Potosi, Santacruz processed 15,965 tonnes of 0.26 g/t Au, 0.2% Pb and 1.6% Zn to produce 85 Oz Au, 18.4K Oz Ag, 72.7K Lb Pb, and 467.4 Lb Zn.
  • Torex Gold Resources Inc., processed 1,246,000 tonnes with 2.6 g/t Au during Q3 2018 from its El Limon-Guajes Mine Complex in Guerrero. The quarterly production was 100.4K Oz Au with a metallurgical recovery of 89%.
  • US Antimony Corporation, released its September and October 2018 production results. In September, US Antimony produced 141.2 K Lb Sb and 1,394 tonnes of zeolites, while in October produced 123.5 Lb Sb and 1,065 tonnes of zeolites.

ON FINANCING

  • Auxico Resources Canada Inc., closed a non-brokered private placement for gross proceeds of $315K (Zamora project, Sinaloa).
  • GoGold Resources Inc., closed the US$12M sale of its Santa Gertrudis royalty with Metalla Royalty and Streaming Ltd. GoGold took US$6M of the US$12M sale price in common shares of Metalla, which represent 9.9% of the Metalla shares outstanding.
  • Impact Silver Corp., announced a non-brokered private placement to raise up to $1.5M to explore its Zacualpan project in Mexico State for additional high potential precious metals as well as Au-Cu targets.
  • Telson Mining Corporation, received $5M from Trafigura Mexico S.A. de C.V., for the second tranche of the loan agreement for the construction of its 1,000 tpd Tahuehueto mine in Durango.
  • Silver Spruce Resources Inc., consolidated its common shares and proposed to complete a non-brokered private placement to raise up to $1.5M. The consolidation of its common shares is one new share for five old shares.
  • Golden Minerals Company, reported revenue of approximately $1.9M in Q3 2018 related to the oxide plant lease and costs of approximately $0.7M related to the services Golden provides under the terms of the lease, for a net margin of $1.2M. Other operating income of $3.2 million included $3.0 million from the sale of Golden’s remaining interest in the Celaya project in Guanajuato to The Electrum Group LLC, as well as pro‐rated income from the farm‐out of the Company’s Zacatecas properties to Santacruz Silver. Exploration expenses were $1.1 million in the third quarter, reflecting increased exploration and project evaluation activities at the Santa Maria project in Chihuahua as well as other projects in Mexico.

 

ON RESOURCES AND DEVELOPMENT

  • Kootenay Silver Inc., designed a program of 15,000m of drilling over 62 holes aimed to expand resources along the extensions of its La Cigarra deposit in Chihuahua. The drilling program will be conducted on four target areas where the company believes there is untested potential to increase resources. “The plan would entail primarily exploration step out drilling of known mineralization and some infill drilling of the successful La Borracha program earlier this year”. “The four areas Kootenay plans to target are the La Borracha high grade (the mineralized trend located 1,000 meters northwest from the northern boundary of the Resource), the La Borracha Connection (connecting La Borracha with the San Gregorio area of the Resource), Gap (a very under drilled area between the main San Gregorio and Las Carolinas zones that currently comprise the Resource) and the Carolinas Extension (the strike extension of the Resource to the southeast)”.
  • Hecla Mining Company, released in-fill drilling results for its San Sebastian mine in Durango. The in-fill drilling was conducted in the central portion of the polymetallic zone along the Francine Vein. Additionally, exploration core drilling was also conducted toward shallower oxide mineralization along the West and East Francine vein areas, the recently discovered South Vein, and at the Esperanza Vein target area. At the Francine vein, the in-fill drilling program intersected high grade mineralization. Highlights include 1.37m of 591 g/t Ag, 4.8% Cu, 16% Pb and 13.5% Zn and 2.25m of 227 g/t Ag, 1.8% Cu, 3.5% Pb, and 6% Zn. The drilling also intercepted narrow but high-grade mineralization along the East Francine vein on new zones of vein-hosted oxide mineralization. Significant intersections are 1.46m of 485 g/t Ag and 0.3 g/t Au, and 2.83m of 299 g/t Ag and 2.2 g/t Au. Mineralization in this area is defined over 1,200 feet along strike and 800 feet down-dip and this new zone could represent an important new source of oxide mineralization. At the West Francine vein, the drilling program encountered also narrow intervals of high grade. Highlights include 0.64m of 1,791 g/t Ag and 0.62 g/t Au. Mineralization in this area is open laterally and at depth. Follow-up, offset drilling is in progress. At the Esperanza vein, exploration drilling commenced but results are pending. Reconnaissance RC drilling discovered a new blind vein under soil cover in the Saladillo Valley. This new vein, referred as the South vein, intercepted significant mineralized intervals such as 2.83m of 392 g/t Ag and 2.5 g/t Au, 2.86m of 187 g/t Ag and 0.93 g/t Au, and 2.86m of 174 g/t Ag and 1.24 g/t Au. Drilling for the remainder of the year will continue to focus on expanding resources and evaluate near-surface oxide mineralization at the West Francine Vein, South Vein, and Esperanza Vein areas.

ON DEALS AND CORPORATE ISSUES

  • Capstone Mining Corp., announced management changes and made reduction of its organizational structure to improve financial and operating performance and save approximately $5M per year in corporate general and administrative expenses (Cozamin mine, Zacatecas).
  • Defiance Silver Corp., and ValOro Resources Inc., signed a definitive merger agreement dated on November 5, 2018. The ValOro shareholders will receive 0.71 common shares of Defiance for each share of ValOro held. “Upon completion of the Transaction, the combined company will have approximately 119 million common shares outstanding, of which former shareholders of Defiance will own approximately 87% and the former shareholders of ValOro will own approximately 13%” (San Acacio project, Zacatecas).
  • Golden Goliath Resources Ltd., announced that Desarrollos Mineros El Aguila S.A. de C.V., a wholly subsidiary of Fresnillo plc, exercised the option agreement on its Uruachic project in Chihuahua by making a final payment of US$2.3M. Golden Goliath still holds a royalty on the several optioned properties in the Uruachic mining district.
  • Golden Reign Resources and Marlin Gold Mining Ltd., completed business combination to form Mako Mining Corp. Prior to the closing of the arrangement, the companies completed the amendment to the Gold Purchase Agreement with Sailfish Royalty Corp., and the Marlin reorganization.

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, banded quartz texture in a hot spring epithermal system in Durango, Mexico.  Photo by Miguel A Heredia.