GoGold Contracts BQE Water to Install SART Plant

GoGold_PR20190620

Halifax, NS – GoGold Resources Inc. (TSX: GGD) (“GoGold”, “the Company”) is pleased to announce that it is moving forward with the installation of a SART (Sulfidation, Acidification, Re-neuralization and thickening) plant at its Parral tailings re-processing facility. The construction is planned to be completed before the end of 2019 at a cost of approximately $2.6 million USD and commissioning will begin immediately following practical completion.

The Mining and Exploration News in Mexico: Highlights on the First Week of June, 2019.

Chalcedonic quartz vein

By Miguel A Heredia

During the twenty one week of the year (June 3rd to June 9th, 2019), at least 31 press releases were announced by companies working in Mexico, with sixteen disclosing deals and corporate issues, five reporting on resources and development of their projects, five informing on exploration results, four announcing financial rounds, two communicating production results, and one discussing Mexican news.  ON MEXICO ISSUES, the Mining Undersecretary of the Secretary of Economy, Francisco Quiroga, said that mining companies from Canada, USA, Peru, Colombia and Australia showed their interest to invest up to USD$ 8M in Mexico mining projects.  ON EXPLORATION, In Baja California Norte, One World Lithium released drilling results from its Salar del Diablo project. In Sonora, Colibri reported assays results from sub-outcrops on its Evelyn project.  In Chihuahua, Monarca identified a skarn and potential CRD/porphyry deposit after running a geophysical survey at its San Jose project.  In Zacatecas, Galore announced it has commenced drilling of 2,500m core drilling program at its Dos Santos property to test the El Alamo target. In Jalisco, GoGold released drilling results from its Los Ricos project.  ON MINING, Mexus Gold announced that over 5,700 tonnes of high-grade ore will be broken on site and hauled to the crushing and leaching site at its Santa Elena mine in Sonora. US Antimony produced 159,142 Lb Sb and 1,292 tonnes of zeolites during May 2019. ON FINANCING, VVC announced a non-brokered private placement for gross proceeds of CAD $2M (Samalayuca project, Chihuahua). Galore received a USD $100K loan from an officer of the company to fund its current 2,500m diamond core drilling program at its Dos Santos project in Zacatecas.  One World Lithium closed its third and final tranche of a previous announced non-brokered private placement for CAD $298,700 and announced a non-brokered private placement to raise up to CAD $2M (Salar del Diablo project, Baja California Norte).  Azure secured A$ 2M financing via a convertible note.  ON RESOURCES AND DEVELOPMENT, Azure announced that its board of directors has approved the commencement of trial mining and processing of high-grade mineralization from its Oposura project in Sonora. Sonoro Metals initiated metallurgical testing at its Cerro Caliche project in Sonora.  Endeavour released underground drilling results from its Guanacevi mine in Durango. Oroco announced the reception of a draft technical report for its Santo Tomas project in Sinaloa. US Antimony reported expansion of its Madero, Coahuila smelter capacity, and reported that its Puerto Blanco leach plant in Guanajuato is in the testing phase for the production of Au and Ag from its Los Juarez mine in Queretaro.   ON DEALS AND CORPORATE ISSUES, Aura Resources, Almadex, and Azucar Minerals granted stock options to directors, officers and consultants.  Riverside appointed Alberto Orozco as its VP Corporate Development (La Cecilia project, Sonora). Monarca signed an option agreement to acquire 100% interest in the San Jose project in Chihuahua and appointed new director. Inomin signed a non-binding letter agreement to acquire 100% interest in the La Gitana project in Oaxaca from Gunpoint, and appointed new director and adviser. Candente announced management changes with the retirement of its chair and director and the appointment of new director (El Oro tailings project, State of Mexico). Goldgroup and VVC announced their annual general meeting of shareholders will be held on July 31, 2019 and August 19, 2019 respectively. SilverCrest reported results of its annual general meeting of shareholders and appointed a new director to the Board (Las Chispas project, Sonora). Kootenay reported that its partner Pan American Silver has relinquished its right to earn 75% interest in the Promontorio Mineral Belt in Sonora. Magna Gold closed its previous qualifying transaction on two mining concessions at its Mercedes property in Sonora. Sierra Metals repurchased a royalty on its Cusi mine in Chihuahua from Minera Cusi S.A. de C.V. in US$ 4M.

 ON MEXICO ISSUES

  • Mexican mining projects raised interest for up to USD$ 8M of investment by companies from Canada, USA, Peru, Colombia, and Australia. According to the head of mining in the country, before realizing the investments, it will be necessary to carry out the work of convincing the surrounding populations. He said: “The type of mining we want is to pay taxes, be socially responsible and achieve economic benefits so that it reaches society and the settlement is public.” He insisted that the presidential mandate is that mining concessions will not be canceled and that the commitments acquired in the past will be honored. Among the areas with the greatest potential are in the south-southeast of Mexico, specifically the states of Oaxaca, Guerrero and Morelos, among others, with products such as Ag, Au, and Cu. The Ministry of Economy reported that the mining-metallurgical sector in Mexico contributes 4% of the national Gross Domestic Product. While in the world our country is the largest producer of Ag; it is among the top 10 producers of 16 different minerals: silver, bismuth, fluorite, celestite, wollastonite, cadmium, molybdenum, lead, zinc, diatomite, salt, barite, graphite, gypsum, gold and copper.

ON EXPLORATION

  • One World Lithium Inc., released drilling results from its Salar del Diablo project in Baja California Norte. The company has completed the first three holes of a twelve drill program, and reported that two holes located 14km apart have intersected aquifers with water samples containing pH values indicative of brines. Drilling to date has demonstrated that there are multiple aquifers in the northern part of the Salar which indicates that the entire Salar could be very prospective.
  • Colibri Resource Corporation, reported additional grab samples results from abundant quartz with local iron-oxide staining in sub-outcrops found on areas not previously mapped or sampled at its Evelyn project in Sonora. Grab samples results include values of 4.81 g/t Au and 4.19 g/t Au. This new area is located approximately 1km north-northeast of the Main Zone which consists of a moderately to steeply dipping Au-bearing quartz vein which has been the subject of historical mining. Colibri is planning a property wide, high density, airborne magnetic survey to determine the structural framework and the setting of known Au mineralization.
  • Monarca Minerals Inc., identified a skarn and potential CRD/porphyry deposit in its San José project in Chihuahua, after conducting an IP-resistivity and magnetic survey which returned very strong IP/magnetic anomalies over 2.8km strike length resulting in numerous drill targets. Based on the geophysical results and previous encouraging chip sampling on the property, Monarca is planning to perform an 18-hole RC drilling program to test for potential precious and base metals at depth.
  • Galore Resources Inc., announced it has commenced drilling of 2,500m core drilling at its Dos Santos property in Zacatecas to test Au mineralization associated with iron-oxides jasperoid and karst breccias exposed along the east-west trending El Alamo target.
  • GoGold Resources Inc., reported encouraging drilling results from an additional five diamond drill holes at its Los Ricos project in Jalisco. Significant results were encountered in hole LRGG-19-011, drilled 75m down dip below the deepest intersection to date on the property, with 1.2 g/t Au and 140 g/t Ag (3.07 g/t AuEq) over 18.5m, including 2.16 g/t Au and 228 g/t Ag (5.19 g/t AuEq) over 8.4m; in hole LRGG-19-13 with 0.78 g/t Au and 195 g/t Ag (3.38 g/t AuEq) over 15.6m, including 1.3 g/t Au and 297 g/t Ag (5.25 g/t AuEq) over 8.8m; and in hole LRGG-19-14 with 1.1 g/t Au and 127 g/t Ag (2.79 g/t AuEq) over 14.2m, including 1.94 g/t Au and 209 g/t Ag (4.73 g/t AuEq) over 7.7m. These positive results confirm that the deposit is still open at depth.

ON MINING

  • Mexus Gold US, announced that over 5,700 tonnes of high-grade ore ranging from 5 to 10 g/t Au and 9 to 12 g/t Ag will be broken on site and hauled to the crushing and leaching site at its Santa Elena mine in Sonora. “The leaching process has started and will continue on a permanent basis as fresh ore will be added to the heap leach pad. Moving forward, Mexus will increase the scale and capacity of the system to maximize returns” added the CEO of the company.
  • US Antimony Corporation, produced 159,142 Lb Sb and 1,292 tonnes of zeolites during May, 2019. It also reported that the inventories of Mexican antimony mine ore continue to grow.

ON FINANCING

  • VVC Exploration Corporation, announced a non-brokered private placement to raise up to CAD $2M. Gross proceeds will be used for exploration and development of its Samalayuca project in Chihuahua.
  • Galore Resources Inc., received a USD $100K loan from an officer of the company to fund its current 2,500m diamond core drilling at El Alamo target within its Dos Santos project in Zacatecas.
  • One World Lithium Inc., closed its third and final tranche of a previous announced non-brokered private placement for CAD $298,700. The aggregate gross proceeds of this offering under the first, second and final tranche totalled CAD $2,073,250. It also announced a non-brokered private placement for gross proceeds of up to CAD $2M. Net proceeds will be used at its Salar del Diablo project in Baja California Norte as follow: Salar del Diablo project drilling program CAD $500K; analysis and further testing of drill results CAD $400K; southern region pre-drilling program CAD$400K; and balance for working capital.
  • Azure Minerals Limited, secured A$ 2M financing via a convertible note by entering into a binding commitment with the company´s major shareholder Deutsche Balaton. “This funding will enable the Company to meet start-up costs and working capital requirements with operations to commence in the September quarter of 2019”.

 ON RESOURCES AND DEVELOPMENT

  • Azure Minerals Limited, announced that its board of directors has approved the commencement of trial mining and processing of high grade mineralization from its 100% owned Oposura property in Sonora. Initial mine production and processing will range between 1,500 to 3,000 tonnes per month of mineralized material grading approximately 15% combined Zn and Pb. The ore material will be processed on a toll treatment basis through a nearby sulphide flotation processing facility.
  • Sonoro Metals Corp., initiated ore characterization and bottle roll and leach column test at its Cerro Caliche project in Sonora. The tests are expected to be completed in 8 weeks. If the results are positive, they will be incorporated in the sensitivity analysis in order to define the characteristics of the heap leaching pilot operation preliminary design, which would be then updated to a NI 43-101 level.
  • Endeavour Silver Corp., released underground drilling results from seventeen holes drilled at its Guanacevi mine in Durango. Seven holes intersected high-grade over mineable widths to extend. Highlights include 0.93 g/t Au and 251 g/t Ag (325 g/t AgEq) over 3m true width in hole UG-61, and two intersections in parallel veins in hole UG-75 with 2.93 g/t Au and 2,175 g/t Ag (2,409 g/t AgEq) over 1m true width, and 0.78 g/t Au and 579 g/t Ag (642 g/t AgEq) over 3.9m. “Recent drilling has extended high grade Ag-Au mineralization to depth at all three of our original orebodies, which should help to increase resources at Guanacevi.”
  • Oroco Resources Corp., announced the reception of a draft technical report for its Santo Tomas project in Sinaloa. The technical report presents the key findings of historical technical reports, including a 1994 PFS study by Bateman Engineering (supported by metallurgical work by Mountain States R&D International, Inc., a resource estimate by Mintec, Inc., and mining and plant estimates by Minetek S.A. de C.V.).
  • US Antimony Corporation, reported expansion of its Madero, Coahuila smelter capacity, which the installation of long rotary furnace (LRF) number 3. The company has an additional 3 LRFs in inventory. Furnace recovery is in the 96%-98% range and the additional capacity is expected to handle production increases from the Company’s Wadley and Sierra Guadalupe Mines in San Luis Potosi and Zacatecas respectively. It also reported that its Puerto Blanco leach plant in Guanajuato is in the testing phase for the production of Au and Ag from its Los Juarez mine in Queretaro.

ON DEALS AND CORPORATE ISSUES

  • Aura Resources Inc., granted stock options to directors, officers and consultants of the company to purchase an aggregate 1.2M common shares at an exercise price of $0.05 per share which expire on June 4, 2019 (Taviche project, Oaxaca).
  • Almadex Minerals Ltd., granted stock options to certain directors and officers of the company to purchase an aggregate 628K common shares at an exercise price of $0.32 per share which expire on June 4, 2019 (Ixtaca project, Puebla).
  • Azucar Minerals Ltd., granted stock options to certain directors, officers and consultants of the company to purchase an aggregate of 573K common shares at an exercise price of $0.29 per share which expire on June 4, 2019 (El Cobre project, Veracruz).
  • Riverside Resources Inc., announced the appointment of Alberto Orozco as its VP Corporate Development (La Cecilia project, Sonora).
  • Monarca Minerals Inc., signed an option agreement to acquire 100% interest in the San Jose project in Chihuahua, where the company identified a skarn and potential CRD/porphyry copper deposit. To acquire the property, Monarca will pay USD $150K in staged cash payments as follow: USD $40K on the option signing date (already paid), USD $50K twelve months after signing of the option agreement, and USD $60K twenty four months after signing of the option agreement. The agreement includes a 2% NSR upon reaching commercial production and Monarca keeps a right to purchase 1% NSR by a single payment of USD $100K. The company also appointed a new director to its Board.
  • Inomin Mines Inc., signed a non-binding letter agreement to acquire 100% interest in the La Gitana property in Oaxaca from Gunpoint Exploration Ltd. La Gitana comprises a 494 hectares that hosts a low-sulphidation epithermal Au-Ag deposits in Tertiary-aged volcanic rocks. In order to acquire 100% of the property Inomin has to make staged payments for $300K and issue 2M of common shares of the company as follow: $10K (paid) on signing agreement; $25K and 150K shares following execution of definitive agreement; $50K and 250K shares on first anniversary; $65K and 450K shares on second anniversary; $75K and 500K shares on third anniversary; and $75K and 650K shares on fourth anniversary. Inomin will have the right to accelerate payments at the company´s discretion, and is also subject to a NSR the terms of which have yet to be finalized.  The company also announced the resignation of one of its directors and the appointment of its replacement. It also appointed an adviser of the company.
  • Candente Gold Corp., reported the retirement of its chair and director and the appointment of its new director (El Oro tailings project, State of Mexico).
  • Goldgroup Mining Inc., announced that its annual general meeting of shareholders will be held on July 31, 2019 (Cerro Prieto mine, Sonora)
  • VVC Exploration Corporation, announced that its annual general meeting of shareholders will be held on August 19, 2019 (Samalayuca project, Chihuahua).
  • SilverCrest Metals Inc., reported results of its annual general meeting of shareholders and appointed a new director to the Board (Las Chispas project, Sonora).
  • Kootenay Silver Inc., announced that its JV partner Pan American Silver Corp., has relinquished to its right to earn 75% interest on the Promontorio Mineral Belt in Sonora, which include the Promontorio Resource and La Negra high-grade Ag discovery. Kootenay will be conducting a review of the work performed by Pan American in order to plan the next steps for advancing these assets.
  • Magna Gold Corp., closed its previous qualifying transaction on two mining concessions at its Mercedes property in Sonora. In consideration of the grant of the option, Magna will: (i) pay to the Seller an aggregate of US$1.34M plus VAT of 16%, paid in installments commencing on the 6th month from the effective date of the agreement (the “Effective Date”) and ending on the 48th month from the Effective Date; (ii) issue to the seller a 3% NSR, capped at US$3.5M and subject to the right of the corporation to acquire all 3 percentage points of the NSR at a price of US$500Kper percentage point, within the first three years of commercial production of the Mercedes Property; and (iii) conditional on the completion of a going public transaction within six months of the Effective Date, issue 2,442,105common shares of the corporation to the seller.
  • Sierra Metals Inc., repurchased a royalty on its Cusi Mine from Minera Cusi S.A. de C.V. for US$ $M. The royalty agreement required the company to pay a 3% royalty on the net revenues generated by the mine, less transportation costs, for the life of the mine. The company has already paid US$2.5 million upon signing the repurchase contract on May 10, 2019 and is required to pay a further US$1.5 million on May 10, 2021. With this repurchase, Sierra Metals will no longer have any royalties on any of its properties or mines.

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

On the picture above, chalcedonic quartz vein in a low sulphidation epithermal system in a prospect in San Luis Potosi, Mexico.  Photo by Miguel A Heredia.

The Mining and Exploration News in Mexico: Highlights on the Third Week of May, 2019

Inguaran Feb 2011 151 - copiaBy Jorge Cirett

During the 22nd week of the year (May 27th to June 2nd, 2019), at least 27 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, on a move that is likely to paralyze the processing of documents at all regional offices of the Direccion General de Minas, the federal government fired all non-unionized workers. The Peñasquito mine in Zacatecas has now been closed by an illegal blockade for more than a month. ON EXPLORATION, In Sonora, Sonoro Metals provided an update on drilling at its Cerro Caliche property. In Chihuahua, Radius Gold released results on two more holes at its Amalia project. In Zacatecas, Galore Resources is mobilizing a rig to drill the El Alamo and Los Gemelos projects. ON MINING, Impact Silver, Telson Resources and Santacruz Silver presented its first quarter 2019 financial and/or operational results. Endeavour Silver updated on its performance plan. Camrova provided an update on mining and mine life plans for the Boleo mine in Baja. ON FINANCING, Prize Mining completed the first tranche of financing for $630 K; Ethos Gold announced a financing round intended to raise $225 K. Magna Gold completed a  private placement for CAD$2.67 M. Silver One is to start trading on the OTCQB Marketplace. ON RESOURCES AND DEVELOPMENT, Gold Resource released more drill results from its El Aguila project in Oaxaca. Fresnillo is investing US$5 M at La Cienega mine in Durango. GoGold released assay results from trenching at its Los Ricos property in Jalisco. Defiance Silver is drilling a geophysical anomaly along the Veta Grande vein system in Zacatecas. ON DEALS AND CORPORATE ISSUES, Radius Gold granted Panamerican Silver an option to earn up to 65% on the Amalia project, in Chihuahua. Magna Gold is to commence trading on June 5, 2019. The company optioned the Mercedes property and lately the Las Marias and Las Cabañas properties, in the vicinity Mercedes. Discovery Metals and Levon Resources combined their enterprises on an agreement that gives Discovery and Levon shareholders 50.4% and 49.6% ownership respectively. Altos Hornos de Mexico (AHMSA) bank accounts have begun unfreezing by Mexican authorities.

ON MEXICO ISSUES

  • The federal government fired all non-unionized workers from the regional offices of the Dirección General de Minas (Chihuahua, Durango, Guadalajara, Hermosillo, Puebla, Queretaro, Saltillo, Zacatecas), in a move that is very likely to paralyze the already slow pace of paperwork at this government branch. Releasing of ground for staking, issuing concession titles, title reductions, cartographic information and contract registration are just some of the processes likely to be affected by this event (Personnel reduction is a cost saving strategy by the present federal administration, strategy that is feared to be likely to result in the centralization, slowing and paralysis of many government services in the coming months).
  • The Peñasquito mine in Zacatecas has been now affected by an illegal blockade for more than a month. So far authorities at all levels continue to advise “negotiations” as the way to solve the illegal blockade, being careful not to mention any applicable law.

ON EXPLORATION

  • Galore Resources Inc. announced the mobilization of a drill rig to El Alamo project in Zacatecas. The 2,500 m diamond drill program can be followed by additional 1,500 m of drilling at Los Gemelos project, also in Zacatecas. El Alamo consists of Cretaceous sediments, mostly limestone with some siltstone and chert, with alteration and mineralization represented by varying amounts of silicification and iron-oxide bodies after sulfides. The target has a minimum strike length of 500 m and 200 m width. Trenching highlighted values of up to 20.4 gpt Au, whereas drilling encountered widespread anomalous gold, running up to 17.1 gpt Au. Coarse gold recovery by gravity was attempted at the nearby Los Gemelos property with a partner, but the agreement on such endeavor has been terminated due to the lack of results. The drill target at Los Gemelos are porphyry intrusive related gold-copper skarns.
  • Radius Gold Inc. has completed six diamond drill holes totaling 1,743 m at its Amalia project in Chihuahua. Assays have been received for the second and third holes (results on the first hole were previously released), highlighting the intercept of 5m @ 647 gpt Ag of white chalcedonic stockworks, silicification and hydrothermal breccias. The remaining three holes (results pending) cut wide intervals of moderate to strong silica and adularia alteration, brecciation, quartz sulphide veinlets and trace fine to moderate black sulphides.
  • Sonoro Metals Corp. provided an update on the last 20 holes at its Cerro Caliche project in Sonora. Highlighted intercepts comprise 9.15 m @ 1.26 gpt AuEq at Japoneses, 3.05 m @ 6.18 gpt AuEq; 9.14 m @ 1.33 gpt AuEq at La Española, 15.24 m @ 0.56 gpt AuEq at Guadalupe, 7.6 m @ 1.14 gpt AuEq at Chinos Altos, 10.67 m @ 1.06 gpt AuEq, and 10.67 m @ 0.74 gpt AuEq at Buena Suerte. Almost 90% of the 10,000 m drill program is now complete.

ON MINING

  • Impact Silver Corp. released its first quarter 2019 financial and production results. The company processed 35.8 K tonnes @ 167 gpt Ag to produce 163.6 K Oz Ag. Revenue was $3.0 M, with a net loss for the quarter of $0.9 M. Costs per tonne processed have been reduced by 10% from last year, as the company continues to focus on cost reductions. Dense media separation is being evaluated for treating ore from the Capire project, and a new concentrate sales partnership has been signed. The company had cash of $0.4 M and trade and other receivables of $1.6 by the end of the period.
  • Endeavour Silver Corp. updated on its operating and financial performance plan initiated on recent months. The plan involves “changes to mine-site management and contractors, changes to employee and contractor supervision, renting used mining equipment and leasing new mining equipment, and revising the 2019 mine plans for all four mines, particularly Guanacevi. The Company has cut operating and administrative costs, reduced the employee and contractor workforce by 18% and deferred all discretionary expenditures”.
  • Telson Mining Corp. reported first quarter 2019 financial results. At Campo Morado in Guerrero, 152.1 K tonnes of ore @ 4.25% Zn, 1.14% Pb, 118 gpt Ag, 1.08 gpt Au were mined at a daily rate of 1,811 tonnes (tpd); 148.3 K tonnes were processed (1,765 tpd), recovering 69% Zn, 33% Pb to produce 9.7 M Lb Zn, 1.5 M Lb Pb, 212.7 K Oz Ag, 895 Oz Au at cash cost of US$0.71 and AISC US$1.01 per Lb Zn produced, obtaining a mine operating profit of C$3.05 M. At Tahuehueto in Durango, pre-production mining rendered approximately 21.6 K tonnes of ore. Telson produced 168 tonnes of lead concentrate (39% Pb, 6% Cu, 80 gpt Au, 840 gpt Ag) and 218 tonnes of Zinc concentrate (44% Zn, 9 gpt Au, 68 gpt Ag). Recoveries stood at 81% Au, 86% Ag, 90% Pb, 60% Zn, 88% Cu.
  • Santacruz Silver Mining Ltd. reported operating and financial results for the first quarter 2019. During the period 42.9 K tonnes were processed to produce 257 k Oz AgEq at cash cost $20.64 and an AISC of $24.38. Revenue was $2.49 M on mining operations and $790 K on mining services, reporting a net loss of $1.84 M (Veta Grande, Zacatecas; Rosario, San Luis Potosi).
  • Camrova Resources Inc. provided an update on the Boleo mine activities in Baja California Sur. The project is run by Korea Resources Corp, the majority shareholder, with Camrova holding a 7.24% stake that gives it rights to attend board meetings. For 2019 the production forecast of underground ore is 508 Kt @ 1.19% Cu and 2.44 Mt of open pit ore @ 80% Cu. Recoveries are expected to be 80.4% Cu, 29.9% Co, 4.2% Zn to produce 19,697 t of copper cathode, 419 t of cobalt and 1,016 t of zinc, resulting in negative free cash flow of $21M after payment of $25M in interest. It is also forecasted a 16 years mine life ending in 2034 by which time all debt is projected to be repaid, without a return of any of the capital that has been invested to date.

ON FINANCING

  • Prize Mining Corp. closed the first tranche of a non-brokered private placement, for gross proceeds of $630 K (Manto Negro, Coahuila).
  • Magna Gold Corp. completed a private placement financing for gross proceeds of CAD$2.67 M (Mercedes, Sonora).
  • Defiance Silver Corp. granted 990 K options to directors, officers and employees of the company at an exercise price of $0.195.
  • Silver One Resources Inc. shares will commence trading on the OTCQB Marketplace under the symbol “SLVRF” at open of markets on May 31, 2019(La Frazada, Nayarit).
  • Ethos Gold Corp. announced a non-brokered private placement to raise gross proceeds of $225 K (La Purisima, Chihuahua).

ON RESOURCES AND DEVELOPMENT

  • Gold Resource Corp. released further drilling results from its El Aguila property in Oaxaca. “High-grade mineralization intercepted 175 meters along the northern strike and 200 meters up-dip in vertical elevation significantly expanding the Arista Mine”. Highlighted intercepts comprise 3.45 m @ 2.45 gpt Au, 17 gpt Ag, 0.42% Cu, 1.4% Pb, 5.8% Zn; 1.45 m @ 4.35 gpt Au, 91 gpt Ag, 0.35% Cu, 1.5% Pb, 1.7% Zn; 11.95 m @ 1.04 gpt Au, 494 gpt Ag, 0.14% Cu, 0.4% Pb, 1.1% Zn (including 2.50 m @ 2.68 gpt Au, 1,420 gpt Ag, 0.33% Cu, 1.3% Pb, 3.2% Zn); 8.02 m @ 0.56 gpt Au, 395 gpt Ag, 0.06% Cu, nil Pb, 0.1%Zn.
  • Fresnillo PLC. is investing US$5 M at its La Cienega mine in Durango. The company is to undertake an economic evaluation of the plant expansion, intensify exploration on several targets and permitting the fourth tailings dam. The 4,000 tonne/day (tpd) mining unit has been in operation since 1992, currently with a labor force of 513 employees and 544 workers by contractors. On 2018 the plant processed 1.32 M tonnes @ 1.65 gpt Au, 164 gpt Ag, to produce 66,869 Oz Au, 6 M Oz Ag, 4,799 tonnes Pb, 5,892 tonnes Zn.
  • GoGold Resources Inc. released assay results from 23 exploration trenches completed at its Los Ricos project in Jalisco. Geological mapping, sampling and trenching defined at least five new targets, identifying mineralisation for further 1.5 Km along strike, taking the system to a total longitude of 3.2 Km, on 1 to 25 m widths. Highlighted results (on estimated true width) include 22 m @ 0.92 gpt Au, 54 gpt Ag; 16.0 m @ 2.53 gpt Au, 187 gpt Ag; 21.0 m @ 0.44 gpt Au, 47 gpt Ag; 18.0 m @ 3.50 gpt Au, 71 gpt Ag; 7.4 m @ 2.16 gpt Au, 31 gpt Ag; 5.6 m @ 3.32 gpt Au, 49 gpt Ag; 9.1 m @ 1.73 gpt Au, 112 gpt Ag; 16 m @ 0.55 gpt Au, 163 gpt Ag; 17.6 m @ 0.76 gpt Au, 121 gpt Ag; 10.1 m @ 1.42 gpt Au, 164 gpt Ag; 8.8 m @ 1.95 gpt Au, 129 gpt Ag.
  • Defiance Silver Corp. commenced a drill program targeting a large induced polarization (IP) geophysical target on the Veta Grande vein, SE of the San Acacio Silver deposit (with an inferred resource of 17 M Oz Ag @ 182 gpt Ag). The program is testing a 450 m step out on the Veta Grande vein system

ON DEALS AND CORPORATE ISSUES

  • Radius Gold Corp. has granted Pan American Silver Corp. the option to earn up to an initial 65% interest in the Amalia project in Chihuahua, by making cash payments to Radius totaling US$1.5 M (of which US$100 K has been received) and expending US$2 M on exploration over four years. Pan American may earn an additional 10% by advancing the property to preliminary-feasibility (Amalia, Chihuahua).
  • Magna Gold Corp. informed that its qualifying transaction is scheduled to close on June 5, 2019 pursuant to the policies of the Exchange. Trading of the common shares of Magna is expected to resume on the Exchange under the symbol “MGR”. The company has optioned 100% interest in two mining claims (the 345 ha Mercedes property in Sonora) for a four-year period, paying an aggregate of US$1.34 M paid in installments, starting on the sixth month of the effective date of the agreement and issue 2.44 M shares to the vendor. The seller is to retain a 3% NSR capped at $3.5 M, which can be bought at $500 K per percentage point within the first three years of production.
  • Magna Gold Corp. entered into an agreement to acquire the Las Marias property and Las Cabañas mineral claims. Las Marias consists of seven concessions covering 646 hectares adjacent to its flagship Mercedes property and Las Cabañas consists of two concessions covering 248 hectares 10 km from the Mercedes property. The total purchase will be $250 k and the issuance of 1 M common shares of the company. “Magna’s total land tenure will increase to 1,239 hectares of highly prospective ground”.
  • Discovery Metals Corp. and Levon Resources Ltd. entered into an arrangement agreement to combine both enterprises to create a “leading silver-focused exploration and development company that will control several district-scale projects in Mexico”. Discovery has agreed to acquire all of the issued and common shares of Levon, with Levon’s shareholders receiving 0.55 shares of Discovery for every Levon share held. Upon completing the transaction former shareholders of Levon will control 49.6% of the Discovery shares outstanding. Discovery holds a 150 K hectares land package in Coahuila, encompassing three shallow and high-grade silver-zinc-lead projects, while Levon’s primary asset is the Cordero project in Chihuahua, with 990 M tonnes @ 32 gpt AgEq and 282 M tones @ 56 gpt AgEq in indicated and inferred mineral resources respectively.
  • Altos Hornos de Mexico S. (AHMSA) bank accounts have begun unfreezing by Mexican authorities, allowing normal activities to be resumed. “The bank accounts of the steelmaker were frozen by Mexico’s financial intelligence unit earlier in the week on suspicion of money laundering. The move to unfreeze the accounts follows the arrest in Spain of AHMSA chairman Alonso Ancira, who was detained by Interpol on May 28.”

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, galena-sphalerite-pyrite-chalcopyrite-quartz vein piece from a mine in Michoacan. Picture by Jorge Cirett.

Inguaran Feb 2011 151 - copia

Santacruz Silver Reports First Quarter 2019 Financial Results

Santacruz Silver Reports First Quarter 2019 Financial Results

Vancouver, British Columbia–(Newsfile Corp. – May 31, 2019) – Santacruz Silver Mining Ltd. (TSXV: 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 first quarter of 2019. 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.

IMPACT Silver Announces Q1 2019 Financial and Production Results

IPT-May-27-2019

MPACT Silver Corp. (“IMPACT” or the “Company”) announces its financial and operating results for the quarter ending March 31, 2019.

The Company reported $3.0 million in revenue for the first quarter of 2019 compared to Q1 2018 at $3.9 million with improved grades helping to offset lower tonnage and silver prices. Mine operating earnings before amortization and depletion were breakeven for the first time since Q1 2018 as cost reductions and grade improvements are having a positive impact.

Bloqueo a mina Peñasquito genera pérdidas millonarias a las arcas públicas: Economía.- El Financiero

https://www.elfinanciero.com.mx/economia/bloqueo-a-mina-penasquito-genera-perdidas-millonarias-a-las-arcas-publicas-economia

El subsecretario de Minería de la Secretaria de Economía, Francisco Quiroga, dijo este jueves que el bloqueo a la mina Peñasquito, que pertenece a Newmont Goldcorp, está generando pérdidas millonarias tanto a la empresa como a las arcas públicas y que el Gobierno está a favor de solución que le permita seguir operando.

Desde el 27 de marzo, un contratista de camiones y miembros de la comunidad Cedros, en el estado de Zacatecas, en donde se ubica la mina, mantienen el bloqueo en Peñasquito.

Newmont Goldcorp anunció en abril que planeaba suspender operaciones debido la situación en la mina.

Además, como reportó El Financiero, Michael Harvey, director de asuntos corporativos y seguridad de Newmont Goldcorp en México, dijo que a la firma se le estaba exigiendo un pago de 450 millones de dólares, lo que calificó como una extorsión.

Peñasquito es una de las minas más grandes en extracción de plata en el mundo, y la principal de oro en México.

Con información de Axel Sánchez*

The Mining and Exploration News in Mexico: Highlights on the Third Week of May, 2019

By Jorge Cirett

During the 20th week of the year (May 13th to May 19th, 2019), at least 34 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, the Mexican government set the goal to reach $8 billion on mining investment annually. Fresnillo received an award for sustainable development.  ON EXPLORATION, In Chihuahua, Silver Spruce granted the contract for its drilling program at Pino de Plata. ON MINING, Mag Silver, Sierra Metals, Americas Silver, Great Panther, Consolidated Zinc, Starcore International and Fortuna Silver presented its first quarter 2019 financial and or operational results. Mexus Gold is hiring technical personnel for its Santa Elena mine and Fresnillo is setting logistic controls to prevent concentrate theft. ON FINANCING, Alien Metals raised £300 K, Orla Mining announced an early warrant incentive program for $4.2 M, Vangold raised $248 K, and Sable Resources $863 K. Almaden secured a gold loan for US$2 M from Almadex, First Mining raised $7.41 M . ON RESOURCES AND DEVELOPMENT, Fresnillo and Mag Silver approved the development of the Juanicipio mine in Zacatecas. Premier Gold released good exploration results at its Mercedes mine in Sonora. GoGold released results from two more drill holes at Los Ricos, Jalisco.  SilverCrest filed a PEA with good numbers from its Las Chispas property in Sonora.  Goldplay announced a 5,000 m drilling campaign at its San Marcial project in Sinaloa. ON DEALS AND CORPORATE ISSUES, Riverside signed a 2 year US$2 M exploration financing agreement with BHP for copper exploration in Sonora. Silver Spruce received $200 K for the sale of a property outside Mexico. Azure Minerals regains control from Teck of the Alacrán property in Sonora. Goldgroup Mining and Dyna Resources presented their stances respect litigation rulings relating to the San Jose de Gracia property in Sinaloa.

ON MEXICO ISSUES

  • The Bureau of Economy (Secretaría de Economía) set the goal for the non-oil mining sector, including processing, of attracting an investment of US$ 8 billion per year. This is a steep endeavor, taking into account that in 2018 Mexico saw mining investments for US$4.55 billion, a 1.8% decrease 2017 levels, and a far cry from the 2012 record of 8 billion dollars.
  • Fresnillo PLC. received by eleventh occasion the award from Centro Mexicano para la Filantropía, which recognized the company’s compromise and adherence to national and international social responsibility practices. Fresnillo programs are focused on quality education, care and promotion of natural resources and personal development of inhabitants in neighboring communities.
  • The Mexican Core Shack saw the addition of core images from the Metates and Sirio projects, in Durango and Chihuahua respectively.

ON EXPLORATION

  • Silver Spruce Resources.  announced the granting of the drilling contract for a twelve hole program on its Pino de Plata property in Chihuahua. The rig is to be mobilized within a week.

ON MINING

  • Mag Silver Corp. released its first quarter 2019 financial results. The Juanicipio project (Zacatecas) approval was subsequent to the period end, but all principal permits have been obtained and the process plant construction is to begin immediately. Underground development continues, with over 19 km of total underground development now completed. The company estimates US$344.4 M of remaining pre-operative initial capital. As of the end of the quarter Mag Silver held US$128.6 M of cash and cash equivalents.   
  • Mexus Gold US.  announced the payment of a $111.5 K note. Furthermore, the company is looking to hire two chemists and one geologist to assist at the Santa Elena mine in Sonora (not to be mistaken with First Majestic’s Santa Elena mine, also in Sonora).  
  •  Sierra Metals Inc. presented its consolidated financial results for the first quarter of 2019. Sierra had revenue of $49.2 M and adjusted EBITDA of $12 M for the period, with record throughput at Cusi. At Bolivar, Chihuahua, cash cost was $2.04 per CuEq Lb and AISC $3.59 per CuEq Lb. At Cusi, also in Chihuahua, cash cost was $16.53 per AgEq Oz and AISC $30.57 per AgEq Oz. During the quarter the consolidated production (Mexico and Peru) was 7.7 M Lb Cu, 0.7 M Oz Ag, 16.4 M Lb Zn, 7.0 M Lb Pb. The company has a net debt of $45.0 M, holding 23.9 M in cash and cash equivalents. 
  • Americas Silver Corp. reported operational and financial results for the first quarter of 2019. The company released consolidated production figures (without disclosing the production in Mexico) of 1.8 M AgEq Oz, with a revenue of $17.8 M and net loss of $2.8 M for the quarter. The enterprise had a cash balance of $3.4 M and working capital balance of $5.2 M at the end of the period (Cosalá Complex, Sinaloa).
  • Fresnillo PLC. is setting logistics controls to reduce the probability of concentrates theft. Some of the measures taken include keeping close relations with authorities at the Federal, State and local levels; remote technological controls; physical security improvements at its Merrill Crowe plants; replacement of most security contractors, with increased controls; keeping to invest in community programs and infrastructure to back community development and support the rule of law; Suspending access to areas deemed too insecure; promoting the disclosing of criminal acts to the authorities.
  • Great Panther Mining Ltd. reported financial results for the first quarter 2019. The company completed the acquisition of Beadell Resources and its Tucano mine in Brazil in March, and most of the report refers to its impact on the company. “A project to increase Topia mining and processing capacity by 25% commenced in the first quarter of 2019 with design specifications and equipment purchases and is scheduled to be completed late in the third quarter or early in the fourth quarter”. At the end of the period the company had $41.4 M of cash and short-term deposits.  
  • Consolidated Zinc Ltd. disclosed production from its Plomosas mine in Chihuahua during the month of April, 2019. During the month 3,694 tonnes of ore were mined @ 11.66% Zn, 1.75 % Pb, for a total of 11,267 tonnes mined @ 10.7% Zn, 2.5% Pb during the first quarter 2019. Mine development was 173 meters for the month, 612 m for the quarter , with 4,737 tonnes sent to the Santa Eulalia concentrator plant, achieving a recovery of 88.9% Zn.
  • Starcore International Mines Ltd. announced production results for the fourth quarter 2019, ended on April 30, 2019. During the period 72 K tonnes were milled @ 1.8 gpt Au, 30 gpt Ag, recovering 86.03% Au, 54.56% Ag, to produce 4,093 AuEq Oz. The company stressed the 25% voluntary reduction on salary for the three top executives, same that will save $250 K annually.
  • Fortuna Silver Mines Inc. reported consolidated financial results for the first quarter 2019. During the period the company had sales of $59.0 M, net income of $2.2 M, adjusted net income of $8.4 M, adjusted EBITDA of $23.8 M and an AISC of $10.7 per AgEq Oz. At the San Jose mine in Oaxaca, 256.4 K tonnes were milled at a rate of 2,984 tonnes per day @ 267 gpt Ag, 1.71 gpt Au, recovering 91% Ag, 90% Au, to produce 2 M Oz Ag, 12,741 Oz Au at a cash cost of $6.4 per AgEq Oz and an AISC of $8.7 per AgEq Oz.

ON FINANCING

  • Alien Metals Ltd. raised £300 K, before expenses, to further exploration at its Donovan 2 project in Zacatecas.
  • Orla Mining Ltd. announced an early warrant exercise incentive program for 6.7 M warrants outstanding expiring in July 2021. Holders exercising the 2021 warrants will be entitled to receive one full new warrant. If all the 2021 warrants are exercised Orla would receive gross proceeds of $4.2 M before July 12, 2019 (Camino Rojo, Zacatecas).
  • Vangold Mining Corp. closed the second tranche of the previously announced private placement for gross proceeds of $248 K. A finder’s fee of $14.4 K and 285 K warrants was paid (Pinguico, Zacatecas).
  • Sable Resources Ltd. closed the first tranche of a non-brokered private placement to raise aggregate gross proceeds of $863 K (Margarita, Chihuahua).
  • Almaden Minerals Ltd. entered into a secured gold loan agreement with Almadex Minerals Ltd. for up to 1,597 Oz Au, or approximately US$2 M. “The interest rate of the Gold Loan is 10% of the Loan Value per annum, paid in arrears. Interest payments can either be accrued to the Loan Value, or paid by the Borrower in cash or gold” (Ixtaca, Puebla).
  • First Mining Gold Corp. upsized and closed the previously announced private placement, raising aggregate proceeds of $7.41 M (San Ricardo, Sonora; Lachatao, Oaxaca).

ON RESOURCES AND DEVELOPMENT

  • Fresnillo PLC and Mag Silver Corp. received approval from their respective boards for development of the Juanicipio mine in the Fresnillo district, Zacatecas. Fresnillo is to be the operator in the Fresnillo-Mag JV (56% and 44% respectively), with construction to begin immediately and completion expected for late 2020. The mine is anticipated to produce annually 11.7 M Oz Ag, 43.5 K Oz Au, with an initial mine life of 12 years. The estimated pre-operative Capex is $US395 M, estimating the creation of 2,750 jobs during construction and 1,720 jobs at full production.
  • Premier Gold Mines Ltd. announced the expansion of the Lupita-Diluvio resource area and a 3 km corridor that step-out exploration has identified. New mineralized veins have been discovered at San Martin and Margarita, outlining a 3 km corridor, while Lupita vein extension drilling returned multiple intercepts including 3.9 m @ 5.99 gpt Au, 41 gpt Ag; 2.9 m @ 5.70 gpt Au, 56 gpt Ag. Ongoing delineation program at Lupita intersected high-grade intercepts including 1.2 m of 10.75 gpt Au, 89 gpt Ag. At Diluvio West one delineation hole returned 30.4 m @ 6.43 gpt Au, 12 gpt Ag including 4.4 m @ 13.79 gpt Au, 22 gpt Ag.
  • GoGold Resources Inc. released results from two more diamond drill holes collared at its Los Ricos project in Jalisco. The program includes twining of old RC holes, returning higher grades than the previous holes, like 21.2 m @ 7.66 gpt Au, 1,270 gpt Ag (previously 20.0 m @ 3.20 gpt Au, 845 gpt Ag), including 6.9 m @ 21.97 gpt Au, 3,718 gpt Ag (previously 6.0 m @ 9.00 gpt Au, 2,608 gpt Ag); 18.8 m @ 0.37 gpt Au, 68 gpt Ag, including 4.5 m @ 0.96 gpt Au, 119 gpt Ag.
  • SilverCrest Metals Inc. released and filed the results from a preliminary Economic assessment (PEA) on its Las Chispas project in Sonora. The study displays a 1,250 tonnes per day (tpd) production rate at 411 gpt AgEq with an initial mine life of 8.5 years to produce annually an average of 5.38 M Oz Ag, 55,700 Oz Au at AISC of $7.52 per AgEq Oz. The Capex is $100.5 M with a payback period of nine months with an after-tax IRR of 78%, after-tax NPV of $406.9 M and cumulative undiscounted net free cash flow of $522.5 M. The PEA estimates a diluted resource of 3.86 M tonnes @ 4.05 gpt Au, 411 gpt Ag, or 714 gpt AgEq, containing 502,200 Oz Au and 51 M Oz Ag, or 88.7 M Oz AgEq with estimated average mining dilution of 33%.
  • Goldplay Exploration Ltd. announced a 5,000 m drilling campaign on its San Marcial property in Sinaloa. The focus of the campaign is on the Faisanes and Nava targets, and to check on newly discovered zones along the Faisanes-Nava corridor. The company is anticipating a Phase II drilling campaign late in 2019 with the secondary objective of test eight exploration targets along a 6 km trend outside of the San Marcial resource area.

ON DEALS AND CORPORATE ISSUES

  • Riverside Resources Inc. signed a two-year US$2 M exploration financing agreement with BHP Exploration Chile SpA. for the funding of generative exploration in the copper producing belt of Mexico. BHP is to fund US1 M on an annual basis for a minimum of two years for generative grass-roots exploration within northeastern Sonora. Properties deemed of interest will become Defined Projects (DPs) and will be funded up to $5 M of exploration work. Riverside is to receive a success fee of US$200 K for each DP, with a $200 K bonus if three properties become DPs. If a DP goes to the Joint Venture stage (Riverside 20%), Riverside is to receive a $1.5 M bonus, and can sell its interest to BHP if elects not to continue on the JV (Tajitos, Sonora; El Capitan, Durango).
  • Silver Spruce Resources Inc. received a $200 K cash payment from Croesus Gold Corp. for the sale of the Kay mine project. After a go-public transaction is completed, Croesus is to  pay Silver Spruce a  final cash payment of $150 K, no later than July 15, 2019 (Pino de Plata, Chihuahua).
  • Azure Minerals Ltd. accepted a right of first offer proposal by Teck Resources Ltd to consolidate ownership of the Alacrán project in Sonora. Azure will retain 100% ownership of the project by issuing to Teck a number of common shares that would result in Teck owning 19.9% of Azure’s outstanding shares on a post-issuance basis, a 0.5% NSR royalty on the project, and a participation right on the proceeds of any sale of the project within a five year period.
  • Goldgroup Mining Inc. announced a final judgement in the United States Disctrict Court for the District of Colorado confirming Goldgroup’s previously announced favorable award in the arbitration against DynaUSA, Inc., ruling DynaUSA having to pay Goldgoup $1.53 M. In addition, the jurisdictional ruling from a Mexico City court that ruled in favor of DynaUSA was challenged in Mexico by Goldgroup and is still pending resolution (Cerro Prieto, Sonora)
  • DynaResource Inc. issued a response to news released by Goldgroup Mining Inc. (see above) in which the United States district court for the district of Colorado confirmed the August 2016 Arbitration award against DynaResource, same that intends to appeal the district court’s May 9 decision. Dyna describes in this news release three different favorable rulings in Mexican courts, same that award Dyna $48 M in damages to be covered by Goldgroup (San Jose de Gracia, Sinaloa).

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-chalcopyrite veinlet hosted by an intrusive rock in core from a project in Michoacan. Picture by Jorge Cirett.