The Mining and Exploration News in Mexico: Highlights on the Third Week of September 2022

By Jorge Cirett
During the 37th week of the year (September 12th to September 18th, 2022), at least 27 companies working in Mexico released news on their properties. Four companies posted exploration advances on their properties, one on the resumption of activities after an illegal blockade, one updated on its work plan for the rest of 2022 and one more updated on the commissioning of its new mine. One company begun trading on the OTCQB Venture Market, one more is to pay services with shares, one cancelled its public offering due to market conditions and one more closed its private placement raising $264 K. Eleven companies released drilling results, informed on exploration, updated resource estimates, provided metallurgical test results, released historic drill results and about commissioning on their advanced properties. One company sold a mine in care and maintenance, one is awaiting permits for the operation of a processing plant, one is to switch a mining property to exploration and pursue acquisition opportunities, and two more announced the formation of a JV to mine a deposit.  ON MEXICO ISSUES, Grupo Mexico’s VP alerted on the risk of insufficient supply of minerals for the energy transition. ON EXPLORATION, in Sonora, Infinitum Copper released drilling results from La Adelita; Tocvan Ventures defined a solid target at El Picacho. In Chihuahua, Golden Minerals released drilling results from Yoquivo; Reyna Silver provided results from surface and underground sampling at Batopilas. ON MINING, Equinox Gold informed on the termination of an illegal blockade at Los Filos. Golden Minerals updated on plans for Velardeña, and Rodeo. SilverCrest Metals updated on the commissioning of Las Chispas mine. ON FINANCING, Regency Silver begun trading at the OTCQB Venture Market. Bear Creek Mining had the payment in shares to a service provider approved. Ranchero Gold withdrew the announced public offering due to market conditions. Silver Spruce closed its financing round having raised $264 K.  ON RESOURCES AND DEVELOPMENT, GR Silver Mining released drilling results from its Plomosas project in Sinaloa. Vizsla Silver reported drilling results from the Panuco project in Sinaloa, including one of the highest silver intercepts here recorded. Orla Mining updated on exploration results at the Camino Rojo Sulfides project and exploration on regional targets in Zacatecas. Americas Gold and Silver updated on resources and exploration at its Cosalá property in Sinaloa. Chesapeake Gold informed on metallurgical test results from Metates, in Durango. Guanajuato Silver Company released historic drill hole results from the Valenciana complex in Guanajuato. Mag Silver updated on the commissioning of Juanicipio in Zacatecas Silver Tiger released results from drilling at El Tigre, in Sonora, and on rehabilitation of underground workings. Torex Gold released drilling results from ELG Underground in Guerrero. Pan American Silver provided an updated resource estimate on the La Colorada Skarn deposit in Zacatecas. GoGold Resources released drilling results on Los Ricos North, in Jalisco. ON DEALS AND CORPORATE ISSUES, Endeavour Silver entered into an agreement to sell El Compas property in Zacatecas to a Mexican company. Xali Gold informed Sun River Gold is about to receive the permit for the processing of tailing at El Oro, in Estado de Mexico. Excellon Resources is evaluating the creation of a spin-out company to pursue acquisitions and looking for partners to explore the Platosa property in Durango. Teck Resources and Agnico Eagle Mines reached an agreement to form a JV to mine the San Nicolás VMS deposit in Zacatecas. ON SOCIAL RESPONSIBILITY, no relevant news.
ON MEXICO ISSUES
·        Xavier García de Quevedo, V.P. of Grupo Mexico, alerted about the risks on the energy transition if the mining industry does not rise its production of minerals. The race to zero emissions is augmenting the demand for lithium, nickel, cobalt, manganese, and graphite for the elaboration of batteries, as well of copper, aluminum, zinc, silicon and rare earths for electricity transmission and renewable energy generation. He pointed out that the time frame to obtain environmental permits, land acquisition, water usage permitting, resolution of social conflicts, community development and human capital are founding stones for the future development of mining.
ON EXPLORATION
·        Golden Minerals Co. reported assay results from 15 holes on the third drill program at Yoquivo, in Chihuahua. “Drilling was designed to follow up on high-grade intercepts reported in earlier drill campaigns and to explore the Pertenencia vein system with sufficient drill density to enable a maiden resource estimate in Q1 2023”. Highlighted true width (tw) intervals comprise 4.4 m @ 1.58 gpt Au, 205 gpt Ag; 5.6 m @ 0.83 gpt Au, 110 gpt Ag; 3.7 m @ 2.53 gpt Au, 379 gpt Ag; 24.8 m @ 0.30 gpt Au, 66 gpt Ag; 2.1 m @ 6.70 gpt Au, 339 gpt Ag. Highlighted core length intervals comprise 3.7 m @ 4.49 gpt Au, 767 gpt Ag; 9.3 m @ 0.28 gpt Au, 209 gpt Ag; 1.7 m @ 2.72 gpt Au, 646 gpt Ag; 4.6 m @ 11.42 gpt Au, 155 gpt Ag.
·        Infinitum Copper Corp. released results from two drill holes at La Adelita, in Sonora. Highlighted core length intervals comprise 20.60 m @ 1.91% Cu, 2.00 gpt Au, 41 gpt Ag; 9.15 m @ 0.14% Cu in the Cerro Grande zone. “The mineralization consists of chalcopyrite, bornite and covellite …….. The magnetite content is estimated to vary from 15% to 75% over the 20.60 m length and iron values average 24%”.
·        Tocvan Ventures Corp. completed the compilation and surface evaluation of the San Ramon prospect within El Picacho project in Sonora. “The target area currently consists of a 500-meter by 500-meter area focused around historic workings trending south along the contact of a regional fault”. Historic sampling at one old working returned an average of 3.6 gpt Au in nine samples and an average of 5.0 gpt Au in 23 samples on a second old working. Three historic reconnaissance holes returned 59.3 m @ 0.2 gpt Au: 39.0 m @ 0.2 gpt Au; 15.0 m @ 0.1 gpt Au.
·        Reyna Silver Corp. provided results from surface and underground sampling from Batopilas in Chihuahua. The 2021 and 2022 work has outlined two gold zones, the East Belt and the Teodoro Gold zone, and better defined the high-grade Silver Zone (that made the district famous with its hypogene native silver) with 300 to 1,500 m extensions to the veins. Six percent of 1,458 samples returned 199 to 14,170 gpt Ag and more than 10% between 1.1 to 32.6 gpt Au. Two geochemical distinct gold events have been recognized to be superimposed on earlier silver. Highlighted results comprise 0.6 gpt Au, 14,170 gpt Ag; 0.1 gpt Au, 3,120 gpt Ag; 32.6 gpt Au, 16 gpt Ag; 30.6 gpt Au, 16 gpt Ag; 22.9 gpt Au, 22 gpt Ag; 16.4 gpt Au, 67 gpt Ag; 8.8 gpt Au, 91 gpt Ag; 19 gpt Au, 2,090 gpt Ag. “a new district-scale magneto-telluric (MT) geophysical survey and a detailed structural reanalysis….. will be combined to define targets for the next round of drilling”.   
ON MINING
·        Equinox Gold Corp. reported that after a meeting with Mezcala community leaders, the illegal blockade at the Los Filos mine in Guerrero was removed and operations were resumed.
·        Golden Minerals Co. announced that “Further review of the results from the Company’s test-mining activities at Velardeña (Durango) over the summer and a review of the mine plans have led Golden to the decision to undertake a development and exploration drill program at Velardeña prior to proposing the restart of mining”. At Rodeo, in Durango, Golden maintains its production guidance for 2022 of 12 to 14 K Oz Au and 42 to 47 K Oz Ag.
·        SilverCrest Metals Inc. provided an update on the commissioning of Las Chispas mine in Sonora. Daily throughput and metallurgical recoveries are trending ahead of projections with actual average recoveries of 96.2% Au, 85.6% Ag and 784 tonnes per day (tpd) processing. The project is fully energized by grid power still to achieve complete reliability. Underground mining is ramping up to 600 to 700 tpd (750 tpd design) with continued focus in dilution and recovery. “In 2022, an additional 5.1 km of underground development has been completed at the Mine, bringing the total to 22.6 km. In-vein drifting represents 5.5 km of this total. A total of 109,000 tonnes of ore have been mined from development and stoping activities in 2022 up to the end of August 2022, approximately 9% below the Feasibility Study target”.
ON FINANCING
·        Regency Silver Corp. announced that its common shares have begun trading on the OTCQB Venture Market, a US platform that is operated by the OTC Markets Group in New York (Dios Padre, Sonora).
·        Bear Creek Mining Corp. has received approval for its shares for services with Unison Mining Consulting Pte. Ltd. Bear Creek issued Unison 555 K common shares (Mercedes, Sonora).
·        Ranchero Gold Corp. terminated its marketed public offering due to market conditions. The company is in discussion with investors to fund the continued exploration work that is currently underway at its Santa Daniela gold project and will provide a financing update shortly (Santa Daniela, Sonora).
·        Silver Spruce Resources Inc. announced a second and final closing of its private placement for gross proceeds of $147 K to reach a total of $264 K on the private placement (El Mezquite and Diamante in Sonora).
ON RESOURCES AND DEVELOPMENT
·        GR Silver Mining Ltd. released drilling results that are part of the ongoing resource update program at Plomosas, in Sinaloa. Highlighted core length intervals comprise 5.7 m @ 514 gpt Ag, 0.1 gpt Au, 0.4% Pb, 0.5% Zn (including 1.0 m @ 1,634 gpt Ag, 0.28 gpt Au, 1.2% Pb, 1.0% Zn. 7.3 m @ 55 gpt Ag, 8.66 gpt Au, 2.7% Pb, 6.6% Zn, 0.5% Cu; 5.0 m @ 88 gpt Ag, 0.33 gpt Au, 5.1% Pb, 2.8% Zn, 0.2% Cu; 21.2 m @ 2.1% Pb, 1.3% Zn. “The Company’s underground drilling and mapping program, currently in progress in the Plomosas Mine Area, has identified un-mined zones that will be incorporated into the upcoming resource estimate.
·        Vizsla Silver Corp. reported results from nine holes from the Copala structure at its Panuco project in Sinaloa. Highlighted true width (TW) intervals comprise 10.20 m @ 1,404 gpt Ag, 10.94 gpt Au (including 0.38 m @ 23,058 gpt Ag, 205.0 gpt Au); 7.31 m @ 743 gpt Ag, 2.59 gpt Au (including 1.01 m @ 3,560 gpt Ag, 8.60 gpt Au); 14.24 m @ 632 gpt Ag, 4.30 gpt Au (including 0.71 m @ 1,575 gpt Ag, 11.00 gpt Au and 1.07 m @ 3,510 gpt Ag, 22.80 gpt Au). “The drilling in the northwestern portion of Copala has traced mineralization along approximately 1,000 metres of strike length and approximately 400 metres down dip”.
·        Orla Mining Corp. provided an update on the 2022 exploration program. Phase 2 drilling continues at Camino Rojo Sulfides, with highlighted core length intercepts of 41.5 m @ 2.56 gpt Au; 52.5 m @ 3.08 gpt Au; 61.2 m @ 1.95 gpt Au; 36.60 m @ 3.20 gpt Au; 27.0 m @ 2.13 gpt Au. Orla expects the new drilling to support a new underground development scenario. Reverse circulation drilling on regional exploration targets is to continue through the second half of 2022. The 2022 exploration budget for Mexico was $10 M.
·        Americas Gold and Silver Corp. informed the measured and indicated resources are almost unchanged year-over-year at Cosalá, in Sinaloa. “The Company recently reinterpreted historic geophysical information and, after incorporating new data from an IP survey completed this summer, has identified seven major IP/Mag anomaly trends on property near San Rafael and EC120.  A 17‐hole drill program is planned to test this area”.
·        Chesapeake Gold Corp. provided a metallurgical update for its Metates project in Durango. Samples of ½” material stored for several years were subject to oxidation and then leached with a standard lime cyanide solution for 90 days with recoveries of almost 60% Au and just over 50% Ag. Further tests of new material with no pre-oxidation returned 35% Au, 20% Ag, but when subjected to oxidation, the oxidation rate was slower than at the first test. A second round of testing is underway, including “crushing finer to ¼”, using High Pressure Grinding Rolls (HPGR) to crush finer, different reagent strengths, different pH’s, on/off irrigation, and varying air addition rates”.
·        Guanajuato Silver Company Ltd. provided an exploration update emphasizing historical drill hole data from the Valenciana mines complex in Guanajuato, which “encompasses approximately 4.2 km of strike length along the Veta Madre regional fault structure”. Highlighted true width intervals comprise 1.54 m @ 4.94 gpt Au, 658 gpt Ag; 6.16 m @ 0.97 gpt Au, 140 gpt Ag; 3.07 m @ 2.86 gpt Au, 367 gpt Ag; 12.49 m @ 1.6 gpt Au, 213 gpt Ag; 8.42 m @ 2.84 gpt Au, 389 gpt Ag; 0.62 m @ 14.38 gpt Au, 1,565 gpt Ag; 2.01 m @ 5.0 gpt Au, 866 gpt Ag; 5.25 m @ 0.95 gpt Au, 145 gpt Ag; 1.24 m @ 2.97 gpt Au, 101 gpt Ag.

·        Mag Silver Corp. informed it has been notified by Fresnillo PLC, operator of the Juanicipio project JV in Zacatecas, that the connection of the processing plant installations to the national grid is being tested under caution to protect the grid from undue fluctuations. “The Fresnillo project team indicates that power for final commissioning and start of operations should be available by the end of October, and that production ramp up will commence in Q4 of this year”.

·        Silver Tiger Metals Inc. released drilling results from El Tigre project in Sonora. Highlighted core length results comprise 8.1 m @ 554 gpt Ag, 0.17 gpt Au, 0.92% Cu, 2.5% Pb, 3.6% Zn (including 2.0 m @ 1,270 gpt Ag, 0.2 gpt Au, 1.66% Cu, 2.8% Pb, 4.3% Zn);  0.5 m @ 2,010 gpt Ag, 0.27 gpt Au, 2.51% Cu, 1.5% Pb, 5.0% Zn; 1.1 m @ 3,096 gpt Ag, 1.79 gpt Au, 0.68% Cu, 1.2% Pb, 0.2% Zn; 0.6 m @ 3,097 gpt Ag, 2.47 gpt Au, 0.32% Cu, 1.0% Pb, 0.8% Zn. Silver Tiger “contracted Cominvi, a Mexican underground contract mining and development company to rehabilitate the Historic El Tigre Mine. Cominvi are progressing well in the underground rehabilitation of the Historic El Tigre Mine and have already completed over 400 meters of rehabilitation in Level 7, which was the main portal to the mine”.

·        Torex Gold Inc. reported assay results from the drill program at El Limón Guajes (ELG) underground mine in Guerrero, including the Sub-Sill and El Limón Deep zones. Highlighted core length intervals comprise 17.5 m @ 16.96 gpt Au; 9.7 m @ 16.87 gpt Au, 0.22% Cu; 11.7 m @ 10.39 gpt Au; 5.5 m @ 13.49 gpt Au, 8 gpt Ag, 0.22% Cu; 8.2 m @ 8.52 gpt Au, 23 gpt Ag, 1.69% Cu; 5.0 m @ 10.37 gpt Au, 10 gpt Ag, 0.51% Cu; 12.5 m @ 5.48 gpt Au, 0.15% Cu; 21.3 m @ 7.18 gpt Au, 26 gpt Ag, 0.77% Cu; 9.7 m @ 10.01 gpt Au, 11 gpt Ag, 0.30% Cu; 8.9 m @ 7.66 gpt Au, 0.12% Cu; 12.1 m @ 7.65 gpt Au, 0.40% Cu; 5.1 m @ 9.72 gpt Au, 0.15% Cu. The drilling budget for ELG Underground is $6 M for 27,000 meters. For Media Luna, a total of $19 M is budgeted for 64,000 m of infill, step-out and initial infill drill program at the adjacent EPO deposit. An additional $9 M is budgeted for 28,500 m of drilling across the broader land package and further $5 M for ore control and definition drilling in the ELG open pit and underground. “The ELG mining complex…. is hosted in the Mesozoic carbonate-rich Morelos Platform, which has been intruded by Paleocene granodiorite stocks, sills, and dikes. Skarn-hosted gold mineralization is developed along the contacts of the intrusive rocks and the enclosing carbonate-rich sedimentary rocks…. The style of mineralization at Sub-Sill South is like Sub-Sill and ELD, and is characterized by gold, which is strongly associated with bismuth and variable amounts of silver and copper. Gold occurs in variably sulfidized, pyrrhotite-rich skarn, while silver and copper mineralization is controlled primarily by the degree of sulfidation of the host skarn. Mineralization is associated with retrograde alteration characterized by the occurrence of phlogopite, amphibole, chlorite, calcite and lesser amounts of quartz and epidote, and local magnetite”.

·        Pan American Silver Corp. released an updated mineral resource estimate for its La Colorada Skarn deposit in Zacatecas. The estimated indicated mineral resource totals 95.9 M tonnes containing 94.4 M Oz Ag, 2.7 M tonnes Zn, 1.2 M tonnes Pb, with the estimated inferred mineral resource totaling 147.8 M tonnes containing 132.9 M Oz Ag, 3.4 M tonnes Zn, 1.5 M tonnes Pb. A total of 234,000 m of drilling have been completed to date on the deposit. “The polymetallic skarn mineralisation is concentrated in three zones, which cover an area of 1,500 metres by 1,100 metres laterally, and a depth of between 600 metres and 1,900 metres below surface…. The deposit is oriented in a north-northwest to south-southeast direction and is below the currently active Candelaria mine workings.

·        GoGold Resources Inc. released results from 21 holes at El Nayar and Gran Cabrera areas within Los Ricos North property in Jalisco. Highlighted core length intervals comprise 10.5 m @ 0.18 gpt Au, 61 gpt Ag; 5.3 m @ 0.38 gpt Au, 66 gpt Ag; 0.9 m @ 6.66 gpt Au; 9.3 m @ 0.15 gpt Au, 89 gpt Ag; 18.2 m @ 1.54 gpt Au, 125 gpt Ag at El Nayar, and 60.10 m @ 45 gpt Ag; 18.0 m @ 0.13 gpt Au, 105 gpt Ag; 18.0 m @ 0.21 gpt Au, 62 gpt Ag; 9.6 m @ 0.17 gpt Au, 74 gpt Ag; 6.8 m @ 0.31 gpt Au, 78 gpt Ag; 8.7 m @ 0.23 gpt Au, 128 gpt Ag; 4.1 m @ 0.26 gpt Au, 200 gpt Ag; 30.7 m @ 64 gpt Ag; 17.3 m @ 0.19 gpt Au, 118 gpt Ag (including 1.6 m @ 1.28 gpt Au, 809 gpt Ag). “The Gran Cabrera mega-system contains stockworks, breccia hosted ore bodies, and large vein feeder sub-systems…”. Dozens of historical underground workings are present along an E-W trending structure over 1,700 m along strike with widths extending more than 20 m. El Nayar consists of multiple subvertical veins and stockwork mineralization and limited historical workings.
ON DEALS AND CORPORATE ISSUES
·        Endeavour Silver Corp. entered into an agreement with Grupo ROSOGO S.A. de C.V. to sell a 100% interest on the El Compas property and the lease on the La Plata processing plant in Zacatecas. ROSOGO is to pay Endeavour $5 M cash over five years, with an initial payment of $250 K. Installment payments of $500 K will be made every six months other than the third payment, which will be $750 K.
·        Xali Gold Corp. informed Sun River Gold expects to receive the permit for tailings removal at El Oro, in Estado de Mexico, within a month. Sun River is also working on a permit to install and operate a reprocessing plant outside of El Oro town. “Xali Gold is to receive a 5% Net Profits Interest as well as the first US$1.5M due to the Municipality of El Oro from SRG’s El Oro tailings operations”. In Nayarit Xali is in negotiations to partner with a local Mexican mining group to operate the San Dieguito de Arriba plant and explore nearby mining properties. At El Dorado in Nayarit the company is in the process to obtain the drilling permit. The Cocula property in Jalisco exploration agreement has been terminated.
·        Excellon Resources Inc. provided a corporate update stating the evaluation of a spin-out exploration company, the pursue of acquisitions opportunities with emphasis in Mexico and exploring partnership opportunities to take Platosa in Durango from production to an interesting exploration prospect.
·        Teck Resources Ltd. and Agnico Eagle Mines Ltd. announced an agreement under which Agnico Eagle is to gain 50% interest in the San Nicolás project in Zacatecas. “Teck and Agnico Eagle will become 50/50 joint venture partners at San Nicolás”. Agnico Eagle is to buy US$580 M in shares of a Teck subsidiary. These proceeds will be used for study and development costs, and the contributions made as the costs are incurred, with no up-front payment by Agnico and funding for the first two years estimated at US$50 M. “post-closing costs with subsequent funding to be contributed according to each partner’s ownership percentage”.  San Nicolás is the largest undeveloped volcanic hosted massive sulfide deposit in Mexico, estimated to contain 105.2 M tonnes of proven and probable mineral reserves averaging 1.12% Cu, 1.48% Zn, 0.4 gpt Au, 22 gpt Ag. The development capital costs are estimated to be in the range of US$1,000 M to US$1,100 M, for an open pit operation with a 15 year mine life.    
ON SOCIAL RESPONSIBILITY
·        No Relevant News.
On the image below: Bladed calcite casts in an epithermal quartz vein in the Sonoran Desert. Picture by Jorge Cirett.

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

By Jorge Cirett

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

ON MEXICO ISSUES

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

ON EXPLORATION

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

ON MINING

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

ON FINANCING

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

ON RESOURCES AND DEVELOPMENT

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

ON DEALS AND CORPORATE ISSUES

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

ON SOCIAL RESPONSIBILITY

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

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

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

Quartz vein displaying boiling texture.

By Miguel A Heredia

During the 34th week of the year (August 22nd to August 28th, 2022), at least 16 press releases were announced by companies working in Mexico, and 7 news published by the media with seven commenting on Mexican issues, four communicating production and financial results, four disclosing deals and corporate issues, three reporting resources and developments of their properties, three announcing financial issues, and two informing on exploration results. ON MEXICO ISSUES, Colibri and Oroco reported the best drilling intercepts in Mexico on the fourth week of August, 2022. The government of Mexico announced, through a decree in the Official Gazette of the Federation, the creation of the state company Litio para Mexico (LitioMx). According to the Mining Chamber of Mexico (CAMIMEX), a total of 822 mining projects remain on hold and represent an amount of USD $959M.   Jaime Gutierrez Núñez, president of CAMIMEX stated that small-scale coal mining is like “the blood diamonds” of Africa. Mexico’s mining industry plans to invest USD $5.5B in 2022, 15.2% more than in 2021. Mining in Mexico grew by 7.1% in 2021 despite friction with the government. The governor of Durango, José Rosas Aispuro, considered unfair that the mining-metallurgical sector is one of the economic sectors with the highest tax burden in the country. In Mexico there are more than 1,209 mining projects that have been developed in 26 states of the Republic.  ON EXPLORATION, In Sonora, Colibri reported results from the second half of its Phase 1 drill program completed on its Evelyn project, and Tocvan announced latest drill results from its Pilar project.  ON MINING, Guanajuato Silver, Discovery Silver, Minera Alamos, and Orogen reported Q2, 2022 production and financial results from their Mexican operations. ON FINANCING, Canasil announced a non-brokered private placement for gross proceeds of up to $550K (Nora project, Durango). Minera Alamos arranged a USD $3M working capital facility and announced a closed a USD $4.35M equity raise (Cerro de Oro project, Zacatecas). Eric Sprott announced holdings in Orex Minerals Inc. ON RESOURCES AND DEVELOPMENT, Discovery Silver reported Q2, 2022 results from its flagship Cordero project, Chihuahua.  Minera Alamos provided an update on its Cerro de Oro project, Zacatecas. Oroco successfully tested the western side of the North Zone at its Santo Tomas project in Sinaloa.  ON DEALS AND CORPORATE ISSUES, Monumental announced that its common shares are now trading on the OTCQB Venture Market under the symbol MNMRF (Jemi project, Coahuila). Argonaut announced the appointment of its Vice President, Canadian Operations (La Colorada mine, Sonora).  Aztec purchased 35% interest in the Cervantes property in Sonora from Kootenay. Colibri announced reinstatement of trading on the TSX Venture Exchange and the appointment of its CFO.  ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUE

  • Colibri Resource Corporation and Oroco Resource Corp., reported the best drilling intercepts in Mexico on the fourth week of August, 2022. Details are shown in the table below:
·        The government of Mexico announced, through a decree in the Official Gazette of the Federation, the creation of the state company Litio para Mexico (LitioMx). The Government of Mexico created LitioMx as a decentralized public organism of the Federal Public Administration and coordinated by the Ministry of Energy, with its own legal personality and assets and with technical, operational and management autonomy. The objective of LitioMx will be the exploration, exploitation, benefit and use of lithium, located in national territory, as well as the administration and control of the economic value chains of such mineral.
·        According to the Mining Chamber of Mexico (CAMIMEX), a total of 822 mining projects remain on hold and represent an amount of USD $959M, which are still waiting for better conditions to be able to reactivate. Jaime Núñez, president of CAMIMEX stated that is essential to encourage exploration since unfortunately in the last seven years we have seen a decrease in investments in exploration, leaving several projects on standby.
·        Jaime Gutierrez Núñez, president of CAMIMEX stated that small-scale coal mining is like “the blood diamonds” of Africa, and that the Federal Electricity Commission (CFE) should certify where the mineral it buys comes from and its conditions.
·        Mexico’s mining industry plans to invest USD $5.5B in 2022, 15.2% more than in 2021, but according to the Mexican Mining Chamber (CAMIMEX), it will remain below the record figure of USD $8.04B seen in 2012 amid difficult conditions. Growing security problems, a high tax burden and the government’s decision to stop granting concessions for projects have prevented investments in the sector from increasing faster, said CAMIMEX head Jaime Gutiérrez.
·        Mining in Mexico grew by 7.1% in 2021 despite friction with the government. According to CAMIMEX’s annual report, this increase positioned it as the only productive activity that recovered and even exceeded the fall of 2020, when the covid-19 pandemic initially stopped its operations because the government did not consider it “essential activity”. Even without tax incentives, the mining sector presented an increase in its contribution to the gross domestic product (GDP) going from 2.3% in 2020 to 2.5% in 2021, and an annual advance in the proportion of industrial GDP from 8.3% to 8.6% in the same period.
·        The Governor of Durango, José Rosas Aispuro, considered unfair that the mining-metallurgical sector is one of the economic sectors with the highest tax burden in the country, even though it is an enabler that prevents the migration of people in the communities where it develops its production processes, for job creation and social benefits. Mining Entrepreneurs stated that mining generates jobs and is one of the industries that pays the most taxes, since in 7 years it has contributed more than MXP $240,000M (approximately USD $12B) in taxes and other rights.
·        In Mexico there are more than 1,209 mining projects that have been developed in 26 states of the Republic, in which 406,179 jobs have been generated and a production value that already exceeds MXP $334,782M (approximately USD $16.7B). Among the main minerals extracted from these deposits are gold, copper, silver, zinc, iron, molybdenum, lead, fluorite, among others. For its exploration and exploitation, in 2021 alone, investments have been made for more than USD $4,810M and more than USD $5,538M are expected by the end of 2022. Of the 1,209 mining projects that exist in Mexico, 286 are in Sonora, Chihuahua has 160 and Durango has 128, which positions them as the entities with the greatest economic benefit thanks to mining concessions. Of the total number of projects, 749 correspond to precious metals; 180 to polymetallic minerals, 167 to copper, 71 to iron ore and the remaining 42 to other metals and minerals. According to the Mexican Mining Chamber (CAMIMEX), there are currently a total of 263 projects in the exploration stage, 76 in production, 39 in the development stage, while 822 projects are being postponed and 9 operations are reported as closed. However, the agency assures that, since the start of the current administration, the federal government has stopped granting permits or concessions for the exploration and development of new projects, since so far more than USD $959.7M dollars have not been invested. .
ON EXPLORATION
·        Colibri Resource Corporation reported results from the second half of its Phase 1 drill program completed on its Evelyn project, Sonora, and included 3,101m of RC drilling completed in 22 holes. In total, Phase 1 consisted of 6,223m of RC drilling in 42 holes.  Highlights include hole EVE22-042 with 0.17 g/t Au over 86m, including 0.32 g/t Au over 22m; hole EVE 22-043 with 0.92 g/t Au over 3m; hole EVE22-046 with 1.94 g/t Au over 2m, including 3.36 g/t Au over 1m; hole EVE22-044 with 0.63 g/t Au over 6m; hole EVE22-036 with 1.3 g/t Au over 1m; hole EVE22-033 with 1.92 g/t Au over 1m; hole EVE22-030 with 0.13 g/t Au over 87m, including 0.34 g/t Au over 8m; hole EVE22-029 with 1.39 g/t Au over 5m; and hole EVE22-028 with 0.13 g/t Au over 19m. In addition to drilling, Colibri is completing the geological mapping as well as conducting soil sampling to infill the historical property wide soil surveys.
·        Tocvan Ventures Corp., informed that seven holes were completed at its Pilar project in Sonora, totalling 1,382m and released results from the three first drill holes where the most significant drill intercepts was encountered in hole JES-22-67 with 0.4 g/t Au over 30.5m, including 7.6 g/t Au over 1.5m. Results are pending for the remaining four holes.
ON MINING
·        Guanajuato Silver Company Ltd., reported Q2, 2022 production and financial results from their El Cubo and Pinguico mines in Guanajuato (all amounts in American dollars). The company milled 94,212 tonnes to produce 155, 912 Oz Ag and 2,161 Oz Au (or 337,760 Oz AgEq) wit metallurgical recoveries of 80.91% and 82.52% respectively, at cash and all included sustaining cost (AISC) of $16.98 and $24-06 per Oz AgEq respectively. Guanajuato Silver reported revenue of $6.13M; cost of sales of $7.8M; mine operating loss of ($1.66M); net loss of ($3.5M); EBIDTA of ($1.1M); and working capital of ($2.04M). The company sold 159,840 Oz Ag, and 2,195 Oz Au (or 342, 987 Oz AgEq) at realized prices of $22.56 and $1,873 per Oz respectively.
·        Discovery Silver Corp., reported Q2, 2022 financial results (all amounts in Canadian dollars). The company reported cash and cash equivalents of $63.6M; total assets of  $101.8M; total current liabilities of $2.54M; working capital of $62.5M; and total shareholder´s equity of $99.2M.
·        Minera Alamos Inc., reported Q2, 2022 production and financial results from its Santana mine in Sonora (all amounts in Canadian dollars). The company reported that monthly mine production rates were approximately 300K tonnes, but with the opening of the Nicho Main Zone during Q2, the company is now in the position to ramp up production levels. Alamos sold 3,128 Oz Au and reported revenues of $7.3M; cost of goods sold of  $3.26M; direct cost of production of $16 per Oz; income from operations of  $2.6M; net income of $2.7M; cash and cash equivalents (including marketable securities) of  $9M; and working capital of $17M.
·        Orogen Royalties Inc., announced Q2, 2022 financial results (all amounts in Canadian dollars). The company reported revenue of $959.8K comprised from the Ermitaño royalty and $17.5K generated from prospect generation activities; project generation cost of $433.5K and recovered $448.9K in expense reimbursement from partners on optioned projects; general and administrative expenses of $875.2K; loss of $754.8K; net loss from operations of $648.6K; cash and cash equivalents from operating activities of $131.3K; cash from operating activities excluding changes in cash-cash working capital of $257.9K ; and working capital of $10.5M including $3.05M in cash and cash equivalents and $5.13M in short term investments and no long-term debt.
ON FINANCING
·        Canasil Resources Inc., announced a non-brokered private placement for gross proceeds of up to $550K. Gross proceeds will be used to fund the company´s exploration programs (Nora project, Durango).
·        Minera Alamos Inc., arranged a USD $3M working capital facility and announced a closed a USD $4.35M equity raise of common shares at $0.55/share. The combination of both enhancing the company´s working capital position as development work extends to the advancement of the Cerro de Oro project in Zacatecas.
·        Eric Sprott announced that 18,333,333 common share purchase warrants of Orex Minerals Inc., expired unexercised representing a decrease in holdings of approximately 7.2% of the outstanding common shares on a partially diluted basis since the date of the last early warning report. As a result of the warrants expiry, Mr. Sprott now beneficially owns and controls 36,666,666 shares representing approximately 19.6% of the outstanding shares on a noun-diluted basis.
ON RESOURCES AND DEVELOPMENT
·        Discovery Silver Corp., reported Q2, 2022 results from its flagship Cordero project, Chihuahua. The company reported that initial results from the Preliminary Feasibility Study (PFS) metallurgical work had recoveries of 90-95% for Ag, Pb, and Zn. It also reported that Phase 2 drilling program intercepted excellent grades below the Preliminary Economic Assessment (PEA) pit including hole C21-564 with 95 g/t Ag, 0.21 g/t Au, 1.9% Pb, and 4.5% Zn (337 g/t AgEq) over 33.9m, and hole C21-560 with 234 g/t Ag, 0.15 g/t Au, 3.8% Pb, and 6.5% Zn (606 g/t AgEq) over 18.1m, as well as hole C22-610 collared outside the current resource with 115 g/t Ag, 0.05 g/t Ag, 3.7% Pb, and 4.1% Zn (388 g/t AgEq) over 32.6m, including 187 g/t Ag, 0.05 g/t Au, 6.5% Pb, and 7.2% Zn (660 g/t AgEq) over 17.8m.
·        Minera Alamos Inc., provided an update on its Cerro de Oro project, Zacatecas. The company informed the sign off of the documentation for its Cerro de Oro project surface rights agreement in Zacatecas, allowing the company to move forward with the permitting process for the construction of its second gold operation in Mexico. Minera Alamos also informed that the NI 43-101 compliant Preliminary Economic Assessment (PEA) is nearly to be completed and is expected to get it done by next month.
·        Oroco Resource Corp., successfully tested the western side of the North Zone at its Santo Tomas project in Sinaloa by drilling 3,050m. Drilling has confirmed and expanded the 2009 Grade shell model of Cu > 0.30% derived from the historical drilling described in the Company’s 2019 Technical Report. A total of 26 holes (18,136 m of drilling) have now been completed in the North Zone, spanning 1,100m of strike length, with intersections of good grade mineralization returned in all holes for which the Company has received assays. Highlights of the last holes collared at the western side of the North Zone include hole N015 with 0.31% Cu, 0.009% Mo, 0.025 g/t Au, and 2 g/t Ag (0.36% CuEq) over 292m; hole N016 with 0.32 g/t Cu, 0.006% Mo, 0.032 g/t Au, and 2 g/t Ag (0.73% CuEq) over 95.4m, plus 0.39% Cu, 0.016%Mo, 0.022 g/t Au, and 4 g/t Ag (0.46% CuEq) over 44.7m, plus 0.26% Cu, 0.010% Mo, 0.014 g/t Au, and 2 g/t Ag (0.31% CuEq) over 88.7m; hole N017 with 0.31% Cu, 0.011% Mo, 0.02 g/t Au, and 2 g/t Ag (0.73% CuEq) over 63.8m, plus 0.22% Cu, 0.01% Mo, 0.02 g/t Au, and 1 g/t Ag (0.28% CuEq) over 159.2m; and hole N018 with 0.36% Cu, 0.011% Mo, 0.017 g/t Au, and 3 g/t Ag (0.42% CuEq) over 21m, plus 0.65% Cu, 0.012% Mo, 0.019 g/t Au, and 3 g/t Ag (0.68% CuEq) over 10m, plus 0.33% Cu, 0.012% Mo, 0.017 g/t Au, and 2 g/t Ag (0.38% CuEq) over 42.3m. The Company will commence a drill program targeted at testing the South Zone in 2022.  
ON DEALS AND CORPORATE ISSUES
·        Monumental Minerals Corp., announced that its common shares are now trading on the OTCQB Venture Market under the symbol MNMRF (Jemi project, Coahuila).
·        Argonaut Gold Inc., announced the appointment of its Vice President, Canadian Operations, effective August 29, 2022 (La Colorada mine, Sonora).
·        Aztec Minerals Corp., purchased indirectly from Kootenay Silver Inc., 35% interest in the Cervantes property in Sonora by issue 10M common shares at a price of CAD $0.25 per Aztec share for aggregate consideration of CAD $2.5M. Kootenay will retain a 0.5% Net Smelter Returned Royalty. Following the closing of the Transaction, Kootenay owns a total of 10.68M Aztec shares, which represents approximately 11.85% of the issued and outstanding Aztec shares on an undiluted basis.
·        Colibri Resource Corporation announced reinstatement of trading of its common shares on the TSX Venture Exchange. The shares will re-open for trading on the Exchange at the opening of trading on Monday, August 29. The company also announced the appointment of its new CFO (Evelyn project, Sonora).
ON SOCIAL RESPONSIBILITY
·        No relevant news.
 
Content like what you have just read can be seen at https://gambusinoprospector.com/ and at LinkedIn’s Mexico Mineral Exploration Group.

On the picture above, boiling texture in a low-intermediate epithermal vein system in a project in Durango, Mexico.  Photo by Miguel A Heredia.

The Mining and Exploration News in Mexico: Highlights on the Third Week of August 2022

By Jorge Cirett

During the 33rd week of the year (August 15th to August 21st, 2022), at least 21 press releases were announced by companies working in Mexico. Four companies posted exploration advances on their properties and two presented production results for the second quarter. Two companies reported on underground sampling and drilling on their advanced properties. One company announced the staking of an epithermal vein system and one more sold the final 20% interest it held on a property.  ON MEXICO ISSUES, no relevant news. ON EXPLORATION, in Sonora, Minaurum commenced the rehabilitation and sampling of historic workings at Alamos; Tocvan Ventures released results from the Pilar project. In Chihuahua, Kootenay Silver released drilling results from Columba. In Sinaloa, Prismo Metals commenced drilling at Palos Verdes. ON MINING, Mag Silver and Starcore International presented financial/operational results for the second quarter 2022. ON FINANCING, Sierra Madre Gold and Silver elaborated on the private placement for $10 M in conjunction with the acquisition of La Guitarra project. Canuc and Minera Alamos closed financing rounds for C270 K and $4.37 M. Prismo Metals intends to complete a non brokered private placement for $150 K. Torex Gold finalized an agreement increasing the available credit from $150 M to $250 M.  ON RESOURCES AND DEVELOPMENT, Sonoro Gold reported results from underground sampling at Cerro Caliche, in Sonora. Silver Dollar reported results from four holes at La Joya, in Durango. ON DEALS AND CORPORATE ISSUES, Orogen Royalties staked the La Verdad epithermal project in Zacatecas. Gold79 Mines sold its remaining 20% interest on Taviche, Oaxaca, to Minaurum Gold. ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUES

  • No Relevant News.

ON EXPLORATION

  • Kootenay Silver Inc. released results from the first holes of the 15,000 m phase 4 drilling program at its Columba project in Chihuahua. Highlighted core-length results on the D vein comprise 11.3 m @ 449 gpt Ag (including 1 m @ 795 gpt Ag); 7.0 m @ 108 gpt Ag; 2.85 m @ 183 gpt Ag; 7.74 m @ 416 gpt Ag (including 1.5 m @ 1,395 gpt Ag, 0.9% Pb, 5.3% Zn); 2.0 m @ 190 gpt Ag, and 1.95 m @ 103 gpt Ag; 1.0 m @ 151 gpt Ag; 6.0 m @ 107 gpt Ag on the F vein.
  • Prismo Metals Inc. commenced the 2,000 m drill program at its Palos Verdes project in Sinaloa. “Previous shallow drilling has intersected high grade mineralization with the best intercept of 2,336 g/t Ag and 8.42 g.t Au over a true width estimated at 0.8 meters within a larger mineralized interval with 1,098 g/t Ag and 3.75 g/t Au over a true width of 2.3 meters.
  • Minaurum Gold Inc. begun rehabilitation of underground historic workings at its Alamos project in Sonora. “Initial rehabilitation to facilitate mapping and sampling of more than 1 km of workings will take several months to complete and will consist of securing and cleaning all underground areas, and removing and stockpiling backfill for possible future processing”. The Promontorio vein can be traced for more than 1 km on the surface and underground; the mine closed in 1896, having produced 70 M Oz Ag. In the 1960’s material from surface dumps and underground backfill was processed, with access cleared to the main haulage level and to the lower levels of the Promontorio mine. Minaurum is to re-log all Promontorio drill core, rehabilitate, map and sample the underground workings.
  • Tocvan Ventures Corp. released results from three drill holes at its Pilar project in Sonora. Highlighted core-length results comprise 16.8 m @ 0.1 gpt Au, 18 gpt Ag (including 6.1 m @ 0.3 gpt Au, 47 gpt Ag; 1.5 m @ 0.6 gpt Au, 185 gpt Ag); 138.8 m @ 0.1 gpt Au (including 30.5 m @ 0.4 gpt Au; which includes 1.5 m @ 7.6 gpt Au). Two of the holes support the presence of a third subparallel trend northeast of the main and 4-T trends.

ON MINING

  • Mag Silver Corp. announced financial results for the Q2 2022.  At Juanicipio (46% Mag Silver, 56% Fresnillo PLC), in Zacatecas, 154.1 K tonnes were processed through the Fresnillo plants. Producing 2.2 M Oz Ag, 5,119 Oz Au, 1,016 tonnes Pb, 1,599 tonnes Zn. The Juanicipio processing plant is about to be connected to the national electrical grid, with 85-90% of the 4,000 tonnes per day capacity expected to be reached by the end of 2022. By the end of the period Mag had $47.7 M of working capital, including $44.6 M in cash.
  • Starcore International Mines Ltd. presented production results for the Q1 2023, ended July 31, 2022. At the San Martin mine in Queretaro, 55.26 K tonnes were milled, averaging 1.70 gpt Au, 21.3 gpt Ag, recovering 89.4% Au, 49.1% Ag, to produce 2,925 Oz AuEq.  

ON FINANCING

  • Sierra Madre Gold and Silver Ltd. amended the terms of the previously disclosed “best efforts” brokered private placement. The offering is to raise now up to $10 M and is being conducted in conjunction with the proposed acquisition of the La Guitarra property in Estado de Mexico.
  • Canuc Resources Corp. announced the closing of a non-brokered private placement for gross proceeds of C$270 K (San Javier, Sonora).
  • Prismo Metals Inc. intends to complete a non-brokered private placement for gross proceeds of $150 K (Palos Verdes, Sinaloa).
  • Torex Gold Resources Inc. finalized a credit agreement with a syndicate of banks to increase the credit available form $150 M to $250 M and to extend the maturation of the facilities from 2023 to 2025. Torex expects the $311 M of cash on hand, no debt, strong forecast cash flow from El Limón Guajes and the $250 M available under the latest credit facilities place Torex on solid footing to fund the development of the Media Luna project. (El Limón-Guajes, Guerrero).
  • Kootenay Silver Inc. clarified that the news release headlined “Kootenay Resources Inc. Announces Private Placement financing of up to $800,000” is related to Kootenay Resources Inc. a private reporting issuer not related to the common stock of Kootenay Silver Inc. a TSX Venture listed company. Kootenay Resources Inc. is a spin-out from Kootenay Silver Inc. focused on British Columbia exploration, of which Kootenay Silver holds 3.2 M shares (Columba, Chihuahua).
  • Minera Alamos Inc. announced the closing of its non-brokered private placement for aggregate gross proceeds of $4.37 M, with no finder’s fees paid (Cerro de Oro, Zacatecas).

ON RESOURCES AND DEVELOPMENT

  • Sonoro Gold Corp. reported results from underground sampling at Cerro Caliche, in Sonora. A rotary handheld saw was used to obtain 34 continuous channel samples of vein and breccia material from the Cabeza Blanca underground workings. Three segments of one tunnel were sampled, averaging 3.9 @ 0.40 gpt Au, 3.5 m @ 3.07 gpt Au, 1.86 m @ 1.79 gpt Au. The highest interval sample returned 2 m @ 7.68 gpt Au. “The current resource estimate classified this 100-meter section as an inferred resource, but the underground sampling results, together with over 7,200 meters of new drilling data, will be included in an updated resource calculation being completed on the project”.
  • Silver Dollar Resources Inc. reported initial assay results from phase II drilling ongoing at the Noria portion of the La Joya project in Durango. A total of 1,899 m have been completed in 10 holes, with core length highlighted results on the first four comprising 26.85 m @ 1.0 gpt Au; 17.05 m @ 1.0% Zn; 9.90 m @ 0.9% Zn; 9.13 m @ 0.7% Zn; 19.35 m @ 192 gpt Ag, 0.27 gpt Au, 1.0% Pb, 2.2% Zn (including 5,0 m @ 451 gpt Ag, 0.62 gpt Au, 2.3% Pb, 4.6% Zn); 4.93 m @ 120 gpt Ag, 0.8% Pb, 0.8% Zn; 3.00 m @ 74 gpt Ag, 0.6% Pb, 2.2% Zn; 5.79 m @ 114 gpt Ag, 0.18 gpt Au, 0.4% Pb, 1.7% Zn; 4.43 m @ 23 gpt Ag, 0.26 gpt Au, 5.6% Zn.

ON DEALS AND CORPORATE ISSUES

  • Orogen Royalties Inc. announced the acquisition by staking of the La Verdad project in Durango. The 264-hectare project contains a low-sulfidation epithermal system with two subparallel quartz veins, Santa Rita and La Verdad along 2.5 kilometers of strike length, hosted in Cretaceous limestone. “Multiple stages of white, yellow and green quartz veins outcrop and display classic low sulfidation style textures. The Santa Rita and La Verdad veins may extend beneath shallow alluvium which covers over 40 percent of the potential vein strike”. A minor drilling program in 2013 tested only 100 m of strike length of the system.
  • Gold79 Mines Ltd. monetized its remaining 20% interest in the Taviche project, in Oaxaca. The transaction allows for the dissolution of the Mexican subsidiary and reduce costs. Additionally, Gold79 will not proceed with the previously announced private placement and will receive a C$230 K loan from management. Minaurum Gold Inc. has exercised the option for C$1 M for the remaining 20% interest in the Taviche project, “Once the option exercise is completed in accordance with its terms along with certain other transactions between the parties, Gold79 will pay CDN$800,000 for a full and final release regarding any claims associated with the project to Minaurum”.

ON SOCIAL RESPONSIBILITY

  • No Relevant Nes.

OBITUARY

  • Endeavour Silver and Aztec Mineral announced the sudden decease of Bradford Cooke, founder of those companies and a long-time promotor of the mining industry in Mexico. He will be missed.

On the image below: Silicified structure tens of meters wide running for several kilometers in the Sonoran Desert. Picture by Jorge Cirett.

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

Banded calcite vein

By Miguel A Heredia

During the 32nd week of the year (August 08th to August 14th, 2022), at least 27 press releases were announced by companies working in Mexico, and 2 news published by the media with twelve communicating production and financial results, four disclosing deals and corporate issues, three commenting on Mexican issues, three reporting resources and developments of their properties, three informing on exploration results, two announcing financing issues, and two discussing social issues. ON MEXICO ISSUES, Vizsla Silver, GR Silver, and Defiance Silver reported the best drilling intercepts in Mexico on the second week of August, 2022. According to a report from the Secretariat of Labor and Social Security, in the last three years, 979 mine inspections have been carried out throughout the country, of which 387 have been carried out in the coal zone of Sabinas, Coahuila. The General Directorate of Mines of the Ministry of Economy provisionally suspended works on 10 mining concessions in Sabinas Coahuila. ON EXPLORATION, In Coahuila, Monumental Minerals announced results of a recently satellite multispectral interpretation covering its Jemi Heavy Rare Earth Elements project. In Durango, Silver Wolf released 155 grab sample results collected during the ongoing surface sample program at its Ana Maria project which has returned some high-grade values up to 1,536 g/t Ag, 34% Pb, and 19.4% Zn. In Zacatecas, Defiance Silver provided an update on the 4,750m maiden drill program at its Lucita project, within its Zacatecas Silver property.  ON MINING, Argonaut reported Q2, 2022 production results from their Mexican mining operations. Aura provided a production guidance for 2022 on its Aranzazu mine in Zacatecas where it expects to produce between 115-120K Oz AuEq at cash cost between USD $645-690 per Oz AuEq produced.  Avino reported Q2, 2022 production and financial results from its Avino mine, Durango. Capstone reported Q2, 2022 production results from its Cozamin mine, Zacatecas. Endeavour reported Q2, 2022 production and financial results from their Guanacevi and Bolañitos mines in Durango and Guanajuato respectively. Gatos Silver reported Q2, 2022 production and financial results from its Cerro Los Gatos mine, Chihuahua. GoGold reported Q2, 2022 production and financial results from its Parral Tailings project, Chihuahua.  Golden reported Q2, 2022 production and financial results from its Rodeo mine, Durango. Orla reported Q2, 2022 production and financial results from its Camino Rojo mine, Zacatecas. SilverCrest reported Q2, 2022 production and financial results from its Las Chispas project, Sonora. Americas reported Q2, 2022 production results from its Cosala mine in Sinaloa. ON FINANCING, Advance announced a non-brokered private placement to raise gross proceeds of up to $200K (Sarape project, Sonora). Fabled informed about an extension of its non-brokered private placement (Santa Maria project, Chihuahua). Fortuna Silver reported Q2. 2022 from its San Jose mine, Oaxaca.  GoGold reported Q2, 2022 production and financial results from its Parral Tailings project, Chihuahua. Golden Minerals reported Q2, 2022 production and financial results from its Rodeo mine, Durango. ON RESOURCES AND DEVELOPMENT, GR Silver reported a new Ag discovery SE of its San Marcial Resource Area on its wholly-owned Plomosas project, Sinaloa. Pan American Silver reported Mineral Reserves and Mineral Resources as at June 30, 2022 for their Mexican properties. Vizsla released results from 26 new drill holes targeting the Tajitos-Copala resource area at its 100%-owned flagship Panuco project in Sinaloa.  ON DEALS AND CORPORATE ISSUES, Prismo announced that its common shares are now eligible for electronic clearing and settlement in the United States through the Depository Trust Company (“DTC”). Consolidated Zinc made several management changes (Plomosas mine, Chihuahua). Advance Lithium sold its royalty on three claims in Kenya to Orogen for USD $120K and the transfer of the 100% ownership of its Sarape property, Sonora. Kootenay amended the schedule on the final payment of its option agreement for 100% of the Columba high-grade silver project, Chihuahua.  ON SOCIAL RESPONSIBILITY, First Majestic released its 2021 Sustainability report. Peñoles and Fresnillo plc promote entrepreneurs.

ON MEXICO ISSUES

  • Vizsla Silver, GR Silver and Defiance Silver reported the best drilling intercepts in Mexico on the second week of August, 2022. Details are shown in the table below:
  • According to a report from the Secretariat of Labor and Social Security, in the last three years, 979 mine inspections have been carried out throughout the country, of which 387 have been carried out in the coal zone, which means that “39% of all the mining inspections that have been carried out in the coal zone of Sabinas (Sabinas, Nueva Rosita, Palau)”. In the coal region, in these three years, 27 mining operations have been closed; that is, 84% of all mine closures in the country, due to non-compliance with security measures; to date 15 remain in force. In addition, the Ministry of Economy has been informed of the existence of 12 concessions that presumably could have irregularities.
  • The General Directorate of Mines of the Ministry of Economy provisionally suspended the works on 10 mining concessions in Sabinas Coahuila, on August 11, until the employers or representatives of each of the work centers certify compliance with the measures dictated in each one of the respective files after the inspections carried out by the Ministry of Labor and Social Security (STPS). The then General Director of Mines did not proceed with the provisional suspension of the works, arguing that the STPS information on the 10 previously mentioned mining concessions did not coincide with the registry data held by the General Directorate of Mines. Considering this and other possible irregularities, the Directors of Mines and Obligations were dismissed last June with the purpose of investigating and, where appropriate, establishing the corresponding responsibilities.

ON EXPLORATION

  • Monumental Minerals Corp., announced results of a recently satellite multispectral interpretation covering its Jemi Heavy Rare Earth Elements project in Coahuila. The interpretation highlighted discreet areas that may host eudialyte-bearing dykes, veins, and disseminations. Eudialyte is a Na, Ca, Fe/Mn, Zr silicate mineral that can contain up to 10% Rare Earth Elements, and 12% ZrO2. The Aster satellite spectral data also identified several areas prospective for Cu-Zn-Pb-Ag carbonate replacement deposits.
  • Silver Wolf Exploration Ltd., released 155 grab sample results collected during the ongoing surface sample program at its Ana Maria project, Durango, which has returned some high-grade values of Ag, Pb, and Zn.  From the 155 samples collected by Silver Wolf, 30 returned values >100 g/t Ag, 73 returned > 0.5% Pb, and 59 returned > 0.5% Zn with peaks of 1,536 g/t Ag, 34% Pb, and 19.4% Zn.  These results combined with the anomalies generated in the geophysical and remote sensing surveys will provide a basis for prioritizing drill targets.
  • Defiance Silver Corp., provided an update on the 4,750m maiden drill program at its Lucita project, within its Zacatecas Silver property. Drilling has encountered multiple intercepts over 199 g/t Ag and individual high-grade silver intervals. Drilling highlights include hole DDLU-22-10 with 0.20 g/t Au and 264 g/t Ag over 3.05m, including 0.19 g/t Au and 668 g/t Ag over 0.77m, plus 0.37 g/t Au and 166 g/t Ag over 4.01m, including 0.57 g/t Au and 220 g/t Ag over 22.72m, including 1.13 g/t Au and 416 g/t Ag over 1.22m, plus 0.08 g/t Au and 235 g/t Ag over 2.25m, including 0.19 g/t Au and 737 g/t Ag over 0.53m, plus 0.03 g/t Au and 189 g/t Ag over 0.75m, plus 0.04 g/t Au and 108 g/t Ag over 0.88m; and hole  DDLU-22-13 with 0.04 g/t Au and 147 g/t Ag over 1.57m, plus 0.04 g/t Au and 150 g/t Ag over 2m, including 0.2 g/t Au and 843 g/t Ag over 0.3m, plus 0.09 g/t Au and 109 g/t Ag over 1.15m. “The inaugural drill program at Lucita central (Palenque vein system) confirmed the presence of high-grade, Fresnillo-style, low to intermediate-sulfidation epithermal silver mineralization, consisting of mainly of pyrargyrite (high-level sulfosalt) and silver sulfides that potentially indicate the higher-level setting of a zoned epithermal system. Follow-up drilling is planned for later this year at the newly discovered zones of mineralization at Palenque and Tahures”.

ON MINING

  • Argonaut Gold Inc., reported Q2, 2022 production results from their Mexican mining operations. At El Castillo mine, Durango, Argonaut mined 1,471,000 tonnes of 0.30 g/t Au to produce 12,047 Oz Au and 10,407 Oz Ag (12,178 Gold Equivalent Ounces (GEOs)), and sold 11,463 Oz Au and 11,293 Oz Ag (11,603 GEOs) at a cash cost of  USD $1,513 per Oz Au sold. At San Agustin mine, Durango, the company mined 2,954,000 tonnes of 0.29 g/t Au to produce 18,033 Oz Au and 88,160 Oz Ag (19,135 GEOs), and sold 18,656 Oz Au and 93,420 Oz Ag (19,824 GEOs) at a cash cost of USD $1,009 per Oz Au sold. At La Colorada mine, Sonora, Argonaut mined 976,000 tonnes of 0.44 g/t Au to produce 12,950 Oz Au and 35,191 Oz Ag (13,390 GEOs), and sold 13,322 Oz Au and 38,194 Oz Ag (13,799 GEOs) at a cash cost of USD $1,003 per Oz Au sold.
  • Aura Minerals Inc., provided a production guidance for 2022 on its Aranzazu mine in Zacatecas where it expects to produce between 115-120K Oz AuEq at cash cost between USD $645-690 per Oz AuEq produced.
  • Avino Silver & Gold Mines Ltd., reported Q2, 2022 production and financial results from its Avino mine, Durango. The company mined 118,224 tonnes to produce 225.5K Oz Ag, 1,350 Oz Au, and 1.64M Lb Cu (649.6K Oz AgEq), and sold 594.7K Oz AgEq at cash and AISC of USD $8.39 and USD $15.95 respectively per Oz AgEq sold. Avino reported revenues of USD $9.4M; operating income of USD $3.9M; non-cash depreciation and depletion of USD $4.4M; net income of USD $2.3M; earnings before interest, taxes, depreciation and amortization (EBIDTA) of USD $4.1M; adjusted earnings of USD $2.5M, operating cash flow (before working capital changes of USD $2.5M; and free cash flow of USD $1.5M. Cash balance reported at June 30, 2022 of USD $12.8M and working capital of USD $14.3M.
  • Capstone Copper Corp., reported Q2, 2022 production results from its Cozamin mine, Zacatecas. The company produced 14.33M Lb Cu at a cash cost of USD $1.25 per Lb Cu produced.
  • Endeavour Silver Corp., reported Q2, 2022 production and financial results from their Guanacevi and Bolañitos mines in Durango and Guanajuato respectively. At Guanacevi, Durango, Endeavour processed 94,017 tonnes to produce 1.19M payable Oz Ag and 3,680 payable Oz Au at cash cost of USD $10.35 per Oz Ag, total  production cost of USD $12.90 per Oz Ag, direct operating cost per tonne of USD $170.75, and direct cost per tonne of USD $201.84 . At Bolañitos mine, Guanajuato, the company processed 107,344 tonnes to produce 155.7K payable Oz Ag and 5,609 payable Oz Au at cash cost of USD $8.01 per Oz Ag, total production cost of USD $24.66 per Oz Ag, direct operating cost per tonne of USD $99.25, and  direct cost per tonne of USD $101.05. Consolidated results summarize 201.4K tonnes processed to produce 1.36M payable Oz Ag and 9.3K payable Oz Au (2.1M Oz AgEq) at cash cost of USD $10.18 per Oz Ag, AISC of USD $19.56 per Oz Ag, total production cost of USD $14.26 per Oz Ag, direct operating cost per tonne of USD $132.63, and direct cost per tonne of USD $148.11. The company reported revenues of USD $30.8M from 602.9K Oz Ag sold and 9.8K Oz Au sold at realized prices of USD $22.72 and USD $1,840 per Oz Ag and Oz Au respectively. It also reported a net earnings (loss) of USD $11.9M, adjusted earnings (loss) of USD $4.3M), mine operating earnings of USD $4.5M, mine operating cash flow before taxes of USD $8.8M, operating cash flow before working capital changes of USD $3.6M, and working capital of USD $149.7M.
  • Fortuna Silver Mines Inc., reported Q2. 2022 from its San Jose mine, Oaxaca. The company mined 251.9K tonnes of 187 g/t Ag and 1.13 g/t Au, both with metallurgical recoveries of 91% to produce 1.38 M Oz Ag and 8.3K Oz Au. Fortuna sold 1.42M Oz Ag and 8.6K Oz Au at realized prices of USD $22.56 and USD $1,873 per Oz Ag and Au respectively at a production cash cost per tonne of USD $83.57, production cash cost per Oz Ag Eq of USD $11 and AISC per Oz AgEq of USD $15.41.
  • Gatos Silver Inc., reported Q2, 2022 production and financial results from its Cerro Los Gatos mine, Chihuahua. The company milled 211,350 tonnes of 374 g/t Ag, 0.38 g/t Au, 2.79% Pb, and 5.03% Zn with metallurgical recoveries of 90.4%, 48.9%, 90.5%, and 66.4% respectively to produce 2.3M Oz Ag, 1.27K Oz Au, 11.8M Lb Pb, and 15.6M Lb Zn. Gatos Silver reported unaudited sales of USD $57.2M, cost of sales of USD $27.8M, royalties of USD $1M, G & A expenses of USD 3.6M, other expenses of USD $0.7M, capital expenditures of USD $20.5M, and cash balance of USD $40M as of June 30, 2022.
  • GoGold Resources Inc., reported Q2, 2022 production and financial results from its Parral Tailings project, Chihuahua. The company produced 213.5K Oz Ag, 3,081 Oz Au, and 219.5K Lb Cu at a cash and AISC of USD $13.17 and USD $17.73 per Oz AgEq respectively. GoGold reported revenues of USD $10.4M from the sale of 512.7K Oz AgEq at a realized price of USD $20.26 per Oz AgEq. It also reported cost of sales including depreciation of USD $7.9M, operating income of USD $221K, net income of USD $1.1M, free cash before working capital changes of USD $3.7M, and cash of USD $73.8M.
  • Golden Minerals Company reported Q2, 2022 production and financial results from its Rodeo mine, Durango. Golden produced 3,004 payable Oz Au and 12,768 payable Oz Ag (3,158 payable Oz AuEq) and sold 3,219 Oz AuEq at a realized price of USD $1,865 per Oz Au and USD $22.49 per Oz Ag. The total cash cost net of Ag byproduct credits was USD $1,426 per Oz AuEq. Golden reported revenues of USD $5.9M, net operating margin of USD $1.3M, cash and cash equivalent balance as of June 30, 2022 of USD $9.5M, and a net loss of 2.8M or USD $0.02 per share.
  • Orla Mining ltd., reported production and financial results from its Camino Rojo mine, Zacatecas. The company produced 25,672 Oz Au and sold 25,431 Oz Au at an average price of USD $1,872 per Oz, and cash and AISC of USD $439 and USD $601 respectively. Orla reported revenues of USD $47.8M, cost of sales-operating cost of USD $10.8M, adjusted earnings of USD $11M, cash flow from operating activities before changes in non-cash working capital of USD $20.7M, free cash flow of USD $28.7M, cash and cash equivalents as at June 30, 2022 of USD $66.7M, and a net debt of USD $100.3M.
  • SilverCrest Metals Inc., reported Q2, 2022 production and financial results from its Las Chispas project, Sonora. The company milled 12,700 tonnes of low-grade from historic stockpiles. At the end of June, 2022 it produced its first precious metal pour consisting of 312Kg of doré with approximately 2,200 Oz Ag and 100 Oz Au. SilverCrest reported cash and cash equivalents of USD $118.6M remaining under a USD $120M project financing facility, a value-added taxes (IVA) receivable in Mexico of USD $26.3M, an inventory of USD $19.4M, and mineral property, plant and equipment of USD $200M.
  • Americas Gold and Silver Corporation reported Q2, 2022 production results from its Cosala mine in Sinaloa. It produced 128K Oz Ag, 3.9M Lb Pb, and 9.9M Lb Zn. Americas provided 2022 production guidance and expect to produce between 0.7-0.9M Oz Ag, 13-15M Lb Pb, and 36-40M Lb Zn.

ON FINANCING

  • Advance Lithium Corp., announced a non-brokered private placement to raise gross proceeds of up to $200K. Gross proceeds will be used to advance its Sarape project in Sonora and for general corporate purposes.
  • Fabled Silver Gold Corp., informed about an extension of its non-brokered private placement by 30 days starting this August 8, 2022 (Santa Maria project, Chihuahua).

ON RESOURCES AND DEVELOPMENT

  • GR Silver Mining Ltd., reported a new Ag discovery SE of its San Marcial Resource Area on its wholly-owned Plomosas project, Sinaloa. Hole SMS22-10 encountered 308 g/t Ag, 0.02 g/t Au, 0.1% Pb, and 0.3% Zn over 101.6m, including 7,139 g/t Ag, 0.04 g/t Au, 1,6% Pb, and 1.3% Zn over 0.8m, plus 3,065 g/t Ag, 0.1% Pb, and 0.2% Zn over 0.3m, plus 1,774 g/t Ag, 0.01 g/t Au, 0.1% Zn over 0.20m, plus 1,508 g/t Ag, 0.1% Zn over 0.2m, plus 1,285 g/t Ag, 0.04 g/t Au, 0.1% Pb, and 0.5% Zn over 0.3m, plus 1,004 g/t Ag, 0.06 g/t Au, 0.2% Pb, and 0.3% Zn over 4.1m, plus 1,579 g/t Ag, 0.06 g/t Au, and 0.1% Zn over 0.4m, plus 1,017 g/t Ag, 0.15 g/t Au, 0.4% Pb, and 0.7% Zn over 0.3m, plus 414 g/t Ag, 0.05 g/t Au, 0.4% Pb, and 0.9% Zn over 16.2m, including 1,405 g/t Ag, 0.2 g/t Au, 0.8% Pb, and 1.9% Zn over 1.3m. “The hole was drilled 250 m to the SE of the San Marcial Resource Area, where the Company has been exploring the extension of the target contact between upper and lower volcanic units, which typically hosts the San Marcial Breccia Ag mineralization, together with strong ground magnetic anomalies delineated in 2021. This new, wide, high-grade silver discovery coincides with an inflexion in the NW-SE trending contact where it intersects with two key NE-SW trending faults. This defines a highly prospective target for continued drilling, both along strike and down dip”.
  • Pan American Silver Corp., reported Mineral Reserves and Mineral Resources as at June 30, 2022 for their Mexican properties. At La Colorada, Zacatecas the company reported proven reserves of 3.8M tonnes with average grades of 340 g/t Ag and 0.23 g/t Au for a total of 41.5M Oz Ag and 27.5K Oz Au contained, and probable reserves of 6.2M tonnes with grades of 303 g/t Ag and 0.18 g/t Au for a total of 59.9M Oz Ag and 36K Oz Au contained. The company also reported measured resources of 1.9M tonnes with grades of 216 g/t Ag and 0.14 g/t Au for a total of 13M Oz Ag and 8.2K Oz Au, indicated resources of 3.4M tonnes with grades of 191 g/t Ag and 0.17 g/t Au for a total of 20.8M Oz Ag and 18K Oz Au contained, and inferred resources of 14.9M tonnes with grades of 195 g/t Ag and 0.2 g/t Au for a total of 93.9M Oz Ag and 98.4K Oz Au contained. At Dolores, Chihuahua, probable reserves reported are 4.1M tonnes of 18 g/t Ag and 0.6 g/t Au for a total of 2.4M Oz Ag and 77.7K Oz Au contained, while inferred resources are 2.5M tonnes with grades of 29 g/t Ag and 0.92 g/t Au for  a total of 2.4M Oz Ag and 74.4K Oz Au. At La Bolsa, Sonora, Pan American reported inferred resources of 13.7M tonnes with grades of 8 g/t Ag and 0.51 g/t Au for a total of 3.3M Oz Ag and 224.8K Oz Au contained. Reported mineral resources do not include amounts identified as mineral reserves. Mineral resources that are not mineral reserves have no demonstrated economic viability.
  • Vizsla Silver Corp. released results from 26 new drill holes targeting the Tajitos-Copala resource area at its 100%-owned flagship Panuco project in Sinaloa. Drilling highlights include hole CS-22-191 with 133 g/t Ag and 0.48 g/t Au (158 g/t AgEq) over a true width (TW) of 1.39m, plus 706 g/t Ag and 4.93 g/t Au (1,011 g/t AgEq) over a TW of 12.52m, including 3,880 g/t Ag and 27.7 g/t Au (5,602 g/t AgEq) over a TW of 1.26m, plus 1,245 g/t Ag and 8.24 g/t Au (1,751 g/t AgEq) over a TW of 1.26m, plus 1,425 g/t Ag and 10.65 g/t Au (2,092 g/t AgEq) over a TW of 0.42m; hole CS-22-173 with 663 g/t Ag and 2.90 g/t Au (826 g/t AgEq) over a TW of 14.46m, including 1,375 g/t Ag and 7.19 g/t Au (1,796 g/t AgEq) over a TW of 0.78m, including 1,501 g/t Ag and 5.49 g/t Au (1,791 g/t AgEq) over a TW of 0.93m, plus 1,655 g/t Ag and 8.05 g/t Au (2,118 g/t AgEq) over a TW of 0.78m, plus 1,505 g/t Ag and 5.93 g/t Au (1,826 g/t AgEq) over a TW of 1.37m; hole CS-22-159 with 285 g/t Ag and 2.12 g/t Au (418 g/t AgEq) over a TW of 10.50m, including 493 g/t Ag and 18.3 g/t Au (1,775 g/t AgEq) over a TW of 0.56m, plus 1,025 g/t Ag and 4.61 g/t Au (1,285 g/t AgEq) over a TW of 0.71m; and hole CS-22-181 with 165 g/t Ag and 0.52 g/t Au (191 g/t AgEq) over a TW of 1.70m, plus 832 g/t Ag and 3.85 g/t Au (1,051 g/t AgEq) over a TW of 3.44m, including 1,725 g/t Ag and 11 g/t Au (2,396 g/t AgEq) over a TW of 0.68, plus 1,501 g/t Ag and 4.98 g/t Au (1,754 g/t AgEq) over a TW of 0.81m.

ON DEALS AND CORPORATE ISSUES

  • Prismo Metals Inc., announced that its common shares are now eligible for electronic clearing and settlement in the United States through the Depository Trust Company (“DTC”). It will simplify the process of trading and enhance liquidity of Prismo shares in the United States. The Company’s shares recently began trading on the OTCQB® Venture Market (“OTCQB”) under the ticker symbol PMOMF (Palos Verdes project, Sinaloa).
  • Consolidated Zinc Limited made several management changes. The company announced the retirement and replacement of its non-executive Chairman, the appointment of a new member of its Board of Directors, and the appointment of its Exploration Manager. All Board changes are effective September 1, 2022 (Plomosas mine, Chihuahua).
  • Advance Lithium Corp., sold its royalty on three claims in Kenya to Orogen Royalties Inc., for USD $120K and the transfer of the 100% ownership of the Sarape property, Sonora. Orogen will retain a 1.5% royalty on the Sarape property.
  • Kootenay Silver Inc., amended the schedule on the final payment of its option agreement for 100% of the Columba high-grade silver project, Chihuahua. The amended agreement splits the final November 2022 payment into a series of payments due in August, November, December 2022 and January, April, and May of 2023. Payments range from USD $215K (August 2022 and May 2023) to USD $480K (November 2022) and USD $430K (December 2022, January, and April 2023).

ON SOCIAL RESPONSIBILITY

  • First Majestic Silver Corp., released its 2021 Sustainability report summarizing the Company´s Environmental, Social and Governance (ESG) performance. CEO of the company stated that their effort in 2021 demonstrated their commitment to sustainability and to improving lives and communities in our host regions while increasing shareholder value, as well as driving positive changes for society and delivering long-term benefits for all First majestic shareholders.
  •  Industrias Peñoles S.A.B. de C.V., and Fresnillo plc promote entrepreneurs providing tools to micro and small entrepreneurs from the communities neighboring their operations through a training and advisory program for the strengthening and creation of proudly local and Mexican companies. Both Peñoles and Fresnillo plc have given nearly 249 workshops for entrepreneurs, with the support of the social organization ProEmpleo. In parallel, the companies and the organization work on the abilities and skills of the participants who seek the continuity of their projects and reinforce them with actions to make them competitive in their local environment. To date, more than 3,800 people have benefited and 203 new companies have been created, which in turn generated 534 direct jobs; 74% of the total number of companies created continue to operate.

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 banded calcite vein with Manganese Oxides from an intermediate sulphidation epithermal vein system in Chihuahua, Mexico.  Photo by Miguel A Heredia.

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

By Jorge Cirett

During the 31st week of the year (August 1st to August 7th, 2022), at least 21 press releases were announced by companies working in Mexico. To note, six companies posted exploration advances on their properties and four presented production results for the second quarter. Only one company reported on the closing of a private placement, one on the granting of incentive options to officers, directors and consultants, one on a $5 M loan facility and one in a share consolidation plan. One company filed an amended report. One company closed the sale of its Mexican properties and one more amended the option agreement of a property.  ON MEXICO ISSUES, no relevant news. ON EXPLORATION, in Sonora, Silver Spruce completed an RC drilling program at Diamante; Tocvan Ventures informed on drilling at Pilar. In Chihuahua, Kootenay Silver informed on drilling at Columba; Mammoth Resources presented drilling results from Tenoriba. In Zacatecas, Alien Metals updated on work at Donovan 2 and San Celso. In Oaxaca, Vortex Metals updated on exploration at Riqueza Marina and Zaachila projects. ON MINING, Coeur Mining, Torex Gold, Equinox Gold and First Majestic Silver presented financial and operational results for the second quarter 2022. ON FINANCING, Heliostat closed a private placement for $3 M. Bear Creek Mining entered into a US$5 M loan facility. Tocvan is granting incentive stock options and Ridgestone Mining is proposing consolidation of its shares.  ON RESOURCES AND DEVELOPMENT, Discovery Silver is filing an amended technical report for the Cordero project in Chihuahua. ON DEALS AND CORPORATE ISSUES, Great Panther Mining closed the sale of its Mexican properties to Guanajuato Silver Company. ON SOCIAL RESPONSIBILITY, Grupo Mexico’s metallurgical complex at Nacozari, in Sonora, was granted the “Great Place to Work” certification.

ON MEXICO ISSUES

  • No Relevant News.

ON EXPLORATION

  • Silver Spruce Resources Inc. along with Colibri Resource Corp. completed its phase 1 drilling program at the 1,057 ha Diamante project in Sonora. The 2,005 m reverse-circulation program in 19 holes, up to 135 m in depth, covered the La Prieta, and Pillado targets. “Mineralization is reported visually as pyrite, arsenopyrite, chalcopyrite, sphalerite, argentiferous galena, argentite, hematite and probable metal oxides, carbonates and sulphates, including copper carbonate (malachite), copper sulphates and plumbojarosite”.
  • Vortex Metals Inc. provided an update in exploration of its Riqueza Marina and Zaachila projects in Oaxaca. The late David Jones identified this area in the early 2000’s …”Copper-gold mineralization within both the Riqueza Marina and Zaachila projects is associated with geologic processes operative in the Late Jurassic to Middle Cretaceous within a back-arc sequence of bi-modal volcanics and volcaniclastics deposited on the sea floor. Early exploration conducted by Dave Jones identified several copper and gold anomalies over a broad area but clearly associated with specific rocks, i.e. exhalite, rhyolite debris aprons or breccia. These associations prompted the identification of a geologic environment which incorporated these features. The Volcanogenic Massive Sulfide (VMS) model incorporates the geologic and geochemical features observed to date”.
  • Kootenay Silver Inc. informed significant progress has been made on the 15,000 m drilling campaign at Columba, in Chihuahua. The current program will test extensions of the F, D, B and JZ veins and exploratory step-outs on other prospective veins. The V vein has been traced for over 700 m of strike and 200 m of depth with an average of 2 m in width, the D vein has been hit along 430 m of strike and 340 m of depth with an average of 6.9 m in width.
  • Tocvan Ventures Corp. informed that seven reverse circulation drill holes for a total of 1,382 m have been completed on the phase III drill program at Pilar, in Sonora.
  • Alien Metals Ltd. updated on exploration work at its San Celso and Donovan 2 projects in Zacatecas. Three holes totaling 201 m were drilled at San Celso and four holes at Donovan 2 for 410 m. No significant intersections were returned for San Celso. At Donovan 2, a 1.87 m interval returned 0.33% Cu, although the recovery was in the 15-20% range. A weak Zn anomaly correlates with a similar zone in a previous hole.
  • Mammoth Resources Corp. provided results from four holes at its Tenoriba project in Chihuahua. The four holes totaled 388.95 m brining the total to 2,623.55 m in 21 holes. Highlighted intercepts comprise 81.0 m @ 0.45 gpt Au, 2 gpt Ag (including 12.0 m @ 1.03 gpt Au, 3 gpt Ag); 10.6 m @ 1.14 gpt Au, 18 gpt Ag; 30.0 m @ 0.32 gpt Au, 3 gpt Ag; 48.0 m @ 1.11 gpt Au, 7 gpt Ag (including 4.5 m @ 2.88 gpt Au, 4 gpt Ag).

ON MINING

  • Coeur Mining Inc. reported second quarter 2022 financial results, including figures from its operations in Mexico. At Palmarejo, in Chihuahua, 539.6 K tonnes were milled @ 1.68 gpt Au, 125 gpt Ag, recovering 92.4% Au, 84.2% Ag, to produce 27,109 Oz Au, 1.79 M Oz Ag. Four drill rigs are to be active in the third quarter 2022 on infill drilling of the Hidalgo and Nacion zones and expansion drilling on the NW Hidalgo and La Carmela zones.
  • Torex Gold Resources Inc. released financial and operating results for the second quarter 2022. During the period, 123,363 Oz Au were produced at its El Limon-Guajes project in Guerrero, at total cash cost $703 per Oz Au and AISC of $911. Construction at Media Luna (close to El Limon-Guajes), is well underway, with a physical progress of 5%, including the development of 2,100 m at the Guajes tunnel and 700 m at South Portal. At the end of the period the company had net cash of $306.3 M with no debt and an undrawn $150.0 M credit facility.
  • Equinox Gold Corp. announced its second quarter 2022 financial and operating results. The report includes the sale of the Mercedes mine in Sonora to Bear Creek Mining Corp., but does not elaborate on production numbers for Mercedes or Los Filos in Guerrero, other than a guidance of 155-170 K Oz Au production from Los Filos in 2022.
  • First Majestic Silver Corp. presented financial results for the second quarter 2022. During the quarter the company negotiated and signed a conclusive agreement with the Mexican tax authority (SAT) though the office of the taxpayer ombudsman (PRODECON) to settle an uncertain tax position relating to intercompany debt financing in Mexico, with a one-time payment of $21.3 M. Consolidated production in Mexico was 6.16 M Oz AgEq, as shown in the table below.

ON FINANCING

  • Bear Creek Mining Corp. entered into a US$5.0 M loan facility with Auramet International LLC.. Bear Creek will sell Auramet 100% of the outrun from the Mercedes mine in Sonora until the note is paid in full and 50 K Oz thereafter (Mercedes, Sonora).
  • Heliostar Metals Ltd. closed its non-brokered private placement offering for gross proceeds of $3 M (Oso Negro and El Picacho, Sonora).
  • Tocvan Ventures Corp. announced the approval of the grant of 1.3 M incentive stock options to officers, directors and consultants of the company (Pilar, Sonora).
  • Ridgestone Mining Inc. intends to seek shareholder approval at its upcoming annual general meeting to consolidate its commons shares in a 20 to 1 ratio. “The proposed Consolidation remains subject to certain conditions including, but not limited to, the receipt of all necessary shareholder and regulatory approvals, including the approval of the TSX Venture Exchange”.

ON RESOURCES AND DEVELOPMENT

  • Discovery Silver Corp. is filing an amended technical report on the Cordero project in Chihuahua. The phrase “the Cordero project is technically and economically viable” was removed, as “the economic analysis is a preliminary economic assessment and cannot demonstrate economic viability”. Discovery is well advanced on a pre-feasibility study (PFS) to be completed on Q4 2022, which is to outline the technical and economic viability of the project.

ON DEALS AND CORPORATE ISSUES

  • Great Panther Mining Ltd. closed the previously announced sale of the Guanajuato Mine Complex (Guanajuato), the Topia mine (Durango) and the El Horcón and Santa Rosa projects (Guanajuato) to Guanajuato Silver Company Ltd.. The deal comprised US$8 M in cash, plus additional cash of US$1.35 M, US$6.7 M in GSilver shares, US$500 K when Topia produces an aggregate of 2.5 M Oz Ag and US$750 K if the silver price rises above US$27.50 per Oz for a month within two years of closing, and US$750 K if the silver price closes above US$30.00 per Oz for a month within three years of closing.
  • Ridgestone Mining Inc. announced the amendment of the property agreement on the Guadalupe y Calvo project in Chihuahua. The revised option agreement with Endeavour Silver extends the cash, share and work commitments of year 2 from February 2023 to March 2024, that of year 3 from February 2024 to March 2025 and that of year 4 from February 2025 to March 2026.

ON SOCIAL RESPONSIBILITY

  • Grupo Mexico’s metallurgical complex in Nacozari, Sonora, obtained the certificate “Great Place to Work”. The certification is recognized in more than 60 countries.

On the image below: Quartz-specularite veining on a project in the Sonoran Desert. Picture by Jorge Cirett.

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

Hydrothermal Brecia

By Miguel A Heredia

During the 30th week of the year (July 25th to July 31st, 2022), at least 25 press releases were announced by companies working in Mexico, and 8 news published by the media with ten disclosing deals and corporate issues, six communicating production and financial results, six commenting on Mexican issues, four reporting resources and developments of their properties, three announcing financing issues, two informing on exploration results, and two discussing social issues. ON MEXICO ISSUES, Mithril Resources, Vizsla Silver, and Southern Silver reported the best drilling intercepts in Mexico on the fourth week of July, 2022. The biggest Mexican mining companies suffered a decrease in metal production between April and June of this year. Minera El Boleo´s representatives did not attend, for the second time, the meeting called by the General Directorate for Conciliation of Collective Affairs.  The mining sector in Mexico: factor of economic growth and social development. ON EXPLORATION, In Sonora, Aztec Minerals commenced a 3,000m core drilling program as a follow-up of its recent Phase 2 RC drilling program at its Cervantes project. In Sinaloa, Prismo received an extension to its environmental permit to drill its Palos Verdes project.  ON MINING, Alamos Gold reported Q2, 2022 production and financial results from its Mulatos mine in Sonora.  Agnico reported Q2, 2022 production and financial results from their Pinos Altos mine, Chihuahua and La India mine, Sonora. Starcore reported year end 2022 production and financial results for its San Martin mine, Queretaro. Mag Silver-Fresnillo plc JV reported Q2, 2022 production results from its Juanicipio project, Zacatecas. Sierra Metals reported Q2, 2022 production results from their Bolivar and Cusi mines in Chihuahua.  ON FINANCING, Silver Spruce announced the first closing of a private placement for gross proceed of up to $117,250 (El Mezquite project, Sonora). Bear Creek entered into a USD $5M loan facility with Auramet (Mercedes mine, Sonora). Elemental Royalties announced that its 1% Net Smelting Return (NSR) royalty on the Mercedes mine, Sonora is now payable.  ON RESOURCES AND DEVELOPMENT, Osisko Development filed a technical report to present and support the results of the Mineral Resource Estimate for its San Antonio Gold project, Sonora. Southern Silver released results from the ongoing drilling program at its Cerro Las Minitas project, Durango. Vizsla released results from nine holes targeting the southern extension of the Napoleon Vein at its Panuco project, Sinaloa. Mithril released results from its ongoing drill program on the western end of its El Refugio resource area at its Copalquin project, Durango.  ON DEALS AND CORPORATE ISSUES, Monumental announced that its common shares are now eligible for electronic clearing and settlement in the United States through the Depository Trust Company (DTC) (Jemi project, Coahuila). Orogen acquired royalties in the Sarape property in Sonora by paying USD $120K to Advance Lithium Corp. Aura Minerals announced the appointment of a new member to its Board of Directors (Aranzazu mine, Zacatecas). Aztec Minerals became 100% owner of the Cervantes project in Sonora.  Azure completed the sale of its Mexican assets to Bendito Resources. Sierra Madre announced the appointment of its new CFO (La Tigra project, Nayarit).  Prismo began trading on the OTCQB under the symbol PMOMF (Palos Verdes project, Sinaloa). Colibri announced that it has filed audited and unaudited financial statements, management discussions and analyses, and officer certifications on the System for Electronic Document Analysis and Retrieval (SEDAR) (Evelyn project, Sonora). Excellon announced the appointment of its Chief Legal Officer & VP, Corporate Affairs (La Platosa mine, Durango). ON SOCIAL RESPONSIBILITY, Fresnillo plc donated two garbage trucks to the Municipality of Fresnillo, Zacatecas. Grupo Mexico announced an investment of MXP $38,000M (about USD $1.9 B) to expand its mining operations that will generate 11,000 jobs in the next five years in Sonora state.

ON MEXICO ISSUE

  • Mithril Resources, Vizsla Silver, and Southern Silver reported the best drilling intercepts in Mexico on the fourth week of July, 2022. Details are shown in the table below:
  • The biggest Mexican mining companies suffered a decrease in metal production between April and June of this year, so their results were under pressure in the second quarter of the year, so their results were under pressure in the second quarter of the year. The Grupo México consortium reported that its net profit fell 45.9%, due to lower copper production, the reduction in the price of said metal, as well as higher costs due to inflation. After the results were announced, the shares of the mining company fell 0.67% on the Mexican Stock Exchange (BMV), closing at 75.32 each.  Fresnillo plc reported that its gold production fell 20.6% in a year-on-year comparison, totaling 158,960 Oz Au from April to June against 200,163 Oz in 2021. In addition, it produced 13.66M Oz Ag in the quarter, a 3% annual reduction compared to 14.09M Oz in the same period of 2021.
  • Minera El Boleo´s representatives did not attend, for the second time, the meeting called by the General Directorate for Conciliation of Collective Affairs. The Delegate in Baja California Sur of the Mining Union described as a lack of respect and a company neglect of the federal government, and announced that the parties are summoned by the Federal Labor Court on Monday, August 1 at 1:00 p.m., to a meeting where the union will expose some modifications to the demands for which the strike broke out and continues. The strike has left more than a thousand basic employees without work and has caused a collapse in the economy of Santa Rosalía, with effects on the rest of the municipality where hundreds of micro, small and medium-sized entrepreneurs depend directly or indirectly on the economic income produced by this company with Korean capital, which is dedicated to the exploitation of copper and other minerals.
  • The mining sector in Mexico: factor of economic growth and social development. The Ministry of Economy of the federal government reports that in 2021, the mining sector in Mexico registered an increase of 16% in the investment received compared to 2020, amounting to USD $4,246M, a situation that confirms that this sector continues to remain one of the productive branches that attracts the most investment to the country. In 2021, mining contributed 3.06% to the National Gross Domestic Product (GDP) and 9.62% to the Industrial GDP.

ON EXPLORATION

  • Aztec Minerals Corp., commenced a 3,000m core drilling program as a follow-up of its successful recent phase 2 RC drilling program conducted at its Cervantes project, Sonora. The follow-up drill program will test California, California Norte and Jasper targets “to better define the open pit, heap leach gold potential of the porphyry gold oxide cap at California, evaluate the potential for deeper copper-gold porphyry sulfide mineralization underlying the oxide cap, test for northern extensions of the California mineralization at California North and northwestern extensions of the Jasper mineralization”.
  • Prismo Metals Inc., received an extension to its environmental permit to drill its Palos Verdes project in Sinaloa. This extension allows Prismo to drill on existing roads. The Secretariat of Environment and Natural Resources (SEMARNAT) is also reviewing an additional application for a permit for new road construction. The company plans to commence the drilling program in the first week of June.

ON MINING

  • Alamos Gold Inc., reported Q2, 2022 production and financial results from its Mulatos mine in Sonora. The company produced 20,200 Oz Au and sold 18,705 Oz Au, reporting total cash cost and an all included sustaining cost (AISC) of $1,566 and $1,636 respectively per Oz Au sold. Alamos reported operating revenues of $$35.1M, and capital expenditure of $21.3M. It also provided 2022 guidance and expects to produce between 130K-145K Oz Au at cash and AISC of $1,225-$1,275 and $1,325-1,375 respectively per Oz Au sold.
  • Agnico Eagle Mines Limited reported Q2, 2022 production and financial results from their Pinos Altos mine, Chihuahua and La India mine, Sonora. At Pinos Altos mine, Chihuahua, Agnico processed 366K tonnes of 2.02 g/t Au to produce 23K Oz Au, at a production cost of USD $109 per tonne; a production cost of USD $1,732 per Oz Au produced; and a total cash cost of USD $1,383 per Oz Au produced. At La India mine, Sonora, the company processed 1,358,000 tonnes of 0.52 g/t Au to produce 20K Oz Au at a production cost of USD $13 per tonne; a production cost of USD $872 per Oz Au produced; and a total cash cost of USD $936 per Oz Au produced.
  • Starcore International Mines Ltd., reported year end 2022 production and financial results for its San Martin mine, Queretaro. The company milled 55,400 tons of 1.58 g/t Au and 23 g/t Ag with metallurgical recoveries of 88.2% and 51.4% respectively, to produce 10K Oz Au and 85.4K Oz Ag (11.2K Oz AuEq) at a mine operating cash cost of USD $62 per tonne milled, and  mine operating cash cost of USD $1,239 per Oz AuEq. Starcore reported cash on hands of USD $8.8M; working capital of USD $9.1M; Au and Ag sales of USD $25.7M; earning from mining operations of USD $5.3M; net income of USD $2.4M; and EBITDA of USD $4.8M.
  • Excellon Resources Inc., reported Q2, 2022 production and financial results from its La Platosa mine, Durango. The company mined 21,481 tonnes and processed 23,550 tonnes of 449 g/t Ag, 4.2% Pb, and 4.7% Zn with metallurgical recoveries of 90.4%, 75.5%, and 86% respectively, to produce 307.5K Oz Ag, 1.65M Lb Pb, and 2.1M Lb Zn, and a total of 260.7K Oz Ag payable, 1.4M Lb Pb payable, and 1.62M Lb Zn payable.   Excellon reported revenue of USD $7.8M; a production cost of USD 244 per tonne; a total cash cost net of by-products of USD $13.81 per Oz Ag payable; All in sustaining cost (AISC) of USD $19.24 per Oz Ag payable; and a net working capital of USD $0.1M with a cash marketable securities of USD $2.9M.
  • Mag Silver Corp., -Fresnillo plc JV reported Q2, 2022 production results from its Juanicipio project, Zacatecas. On Q2, 2022, a total of 154,069 tonnes were processed with grades of 567 g/t Ag  to produce 2.37M Oz Ag and 5,5K Oz Au of which 1.04M Oz Ag and 2.5K Oz Au are attributable to Mag due to its 44% ownership on the Juanicipio project.
  • Sierra Metals Inc reported Q2, 2022 production results from their Bolivar and Cusi mines in Chihuahua. At Bolivar mine, Chihuahua, the company processed 256,372 tonnes of 0.63% Cu, 12 g/t Ag, and 0.24 g/t Au with metallurgical recoveries of 90.61%, 80.99%, and 65.93% respectively, to produce 3.2M Lb Cu, 83K Oz Ag and 1,283 Oz Au (4.2M Lb CuEq). At Cusi mine, Chihuahua, Sierra Metals processed 66,772 tonnes of 146 g/t Ag, 0.17 g/t Au, and 0.23% Pb with metallurgical recoveries of 82.07%, 43.64%, and 80.78% respectively, to produce 258K Oz Ag, 160 Oz Au, and 273K Lb Pb (283K Oz AgEq).

ON FINANCING

  • Silver Spruce Resources Inc., announced the first closing of a private placement for gross proceed of up to $117,250. The company plans to complete second a final closing of the private placement by August 18, 2022 (El Mezquite project, Sonora).
  • Bear Creek Mining Corporation entered into a USD $5M loan facility with Auramet (Mercedes mine, Sonora). Part of the proceeds will be used to fast-track production improvements at its recently acquired Mercedes mine in Sonora.
  • Elemental Royalties Corp., announced that its 1% Net Smelting Return (NSR) royalty on the Mercedes mine, Sonora is now payable. Elemental acquired a 1% NSR royalty on the Mercedes gold-silver mine in July 2018, payable from the earlier of either a production threshold or July 28, 2022.

ON RESOURCES AND DEVELOPMENT

  • Osisko Development Corp., filed a technical report to present and support the results of the Mineral Resource Estimate at June 30, 2022 for its San Antonio Gold project, Sonora. The company reported indicated resources of 14.9M tonnes with grades of 1.2 g/t Au and 3 g/t Ag for 576K Oz Au and 1.37M Oz Ag contained, and inferred resources of 16.6M Oz Au with grades of 1.02 g/t Au and 3 g/t Ag for 544K Oz Au and 1.76M Oz Ag contained.
  • Southern Silver Exploration Corp., released results from the ongoing drilling program at its Cerro Las Minitas project, Durango. Drilling highlights include hole 21CLM-191 with 123 g/t Ag, 0.8% Cu, 0.4% Pb, and 0.6% Zn (251 g/t AgEq or 6.4% ZnEq) over a true width (TW) of 4.7m, including 848 g/t Ag, 5.6% Cu, 0.7% Pb, and 2.6% Zn (1,596 g/t AgEq or 40.5% Zn Eq) over a TW of 0.4m, and 77 g/t Ag, 4.4% Cu, 0.2% Pb, and 0.9% Zn (617 g/t AgEq or 15.6% Zn Eq) over a TW of 2.6m, including 165 g/t Ag, 0.1 g/t Au, 11.5% Cu, 0.1% Pb, and 0.4% Zn (1,463 g/t AgEq or 37.1% Zn Eq) over a TW of 1m; hole 22CLM-188 with 307 g/t Ag, 1 g/t Au, 0.5% Cu, 0.2% Pb, and 0.7% Zn (481 g/t AgEq or 12.2% Zn Eq) over a TW of 0.3m, and 128 g/t Ag, 0.8% Pb, and 1,1% Zn (202 g/t AgEq or 5.1% Zn Eq) over a TW of 12.7m, including 352 g/t Ag, 0.1% Cu, 2.4% Pb, and 1.6% Zn (500 g/t AgEq or 12.7% Zn Eq) over a TW of 4.8m, including 675 g/t Ag, 0.3% Cu, 5.5% Pb, and 3.4% Zn (1,008 g/t AgEq or 25.6% Zn Eq) over a TW of 1.3m; and hole 22CLM-187 with 98 g/t Ag, 0.1% Cu, 1% Pb, and 0.1% Zn (145 g/t AgEq or 3.7% Zn Eq) over a TW of 1.7m, plus 162 g/t Ag, 0.6 g/t Au, 0.3% Cu, 1.5% Pb, and 0.6% Zn (314 g/t AgEq or 8% Zn Eq) over a TW of 1.9m, including 499 g/t Ag, 0.1 g/t Au, 0.4% Cu, 4.6% Pb, and 1.5% Zn (759 g/t AgEq or 19.2% Zn Eq) over a TW of 0.6m, and 9 g/t Ag, 1.2 g/t Au, 0.2% Cu, 0.1% Zn (134 g/t AgEq or 3.4% Zn Eq) over a TW of 2m. These results continue to extend the silver-polymetallic mineralization laterally to the east and west in the North Felsite target on the Cerro Las Minitas project, Durango.
  • Vizsla Silver Corp., released results from nine holes targeting the southern extension of the Napoleon Vein at its Panuco project, Sinaloa. Drilling highlights include hole NP-22-300 with 913 g/t Ag, 5.28 g/t Au, 0.1% Pb, and 0.2% Zn (1,241 g/t AgEq) over a true width (TW) of 3.90m, including 1,385 g/t Ag, 6.62 g/t Au, 0.1% Pb, and 0.1% Zn (1,772 g/t AgEq) over a TW of 0.83m, including 1,750 g/t Ag, 13.75 g/t Au, 0.2% Pb, and 0.5% Zn (2,641 g/t AgEq) over a TW of 0.5m; hole NP-22-295 with 682 g/t Ag, 3.62 g/t Au, 0.7% Pb, and 2.2% Zn (990 g/t AgEq) over a TW of 1.7m, and 493 g/t Ag, 3.15 g/t Au, 0.8% Pb, and 3% Zn (813 g/t AgEq) over a TW of 1.41m; and hole NP-22-291 with 283 g/t Ag, 1.08 g/t Au, 0.6% Pb, and 4.5% Zn (517 g/t AgEq) over a TW of 1.48m, and 484 g/t Ag, 0.46 g/t Au, 0.1% Pb, and 0.9% Zn (518 g/t AgEq) over a TW of 1.18m. These results demonstrate the continuity of high-grade silver and gold mineralization along the southern extent of the main Napoleon Vein.
  • Mithril Resources Ltd., released results from its ongoing drill program on the western end of its El Refugio resource area at its Copalquin project, Durango. Significant drill intercepts were encountered in holes CDH-140 with 15.73 g/t Au and 474 g/t Ag (22.5 g/t AuEq) over 5.83m, including 45.5 g/t Au and 1,387 g/t Ag (66.73 g/t AuEq) over 1.81m; and hole CDH-141 with 1.35 g/t Au and 48 g/t Ag (2.03 g/t AuEq) over 4m, and 2.54 g/t Au and 24 g/t Ag (2.88 g/t AuEq) over 5.49m, and 1.67 g/t Au and 55 g/t Ag (2.45 g/t AuEq) over 1.8m.

ON DEALS AND CORPORATE ISSUES

  • Monumental Minerals Corp., announced that its common shares are now eligible for electronic clearing and settlement in the United States through the Depository Trust Company (DTC). The Company’s shares will now trade under the symbol “MNMRF” (Jemi project, Coahuila).
  • Orogen Royalties Inc., acquired royalties in the Sarape property in Sonora by paying USD $120K to Advance Lithium Corp. Orogen will retain 1.5% net smelter return royalty on the Sarape project.
  • Aura Minerals Inc., announced the appointment of a new member to its Board of Directors (Aranzazu mine, Zacatecas).
  • Aztec Minerals Corp., became 100% owner of the Cervantes project in Sonora by acquiring Kootenay Silver Corp´s 35% interest in the JV company that holds the Cervantes property. As consideration for the acquisition, Aztec will issue to Kootenay 10M common shares in the capital of Aztec, at a price of CAD $0.25 per share, and Kootenay  will retain a 0.5% Net Smelter Return Royalty.
  • Azure Minerals Limited completed the sale of its Mexican assets to Bendito Resources Inc, for a combination of cash and shares valued at A $20M.
  • Sierra Madre Gold and Silver Ltd., announced the appointment of its new CFO (La Tigra project, Nayarit).
  • Prismo Metals Inc., announced that its common shares have been approved for listing on the OTCQB. It will begin trading under the symbol PMOMF (Palos Verdes project, Sinaloa).
  • Colibri Resource Corporation announced that it has filed audited financial statements for the period ending December 31, 2021; unaudited quarterly financial statements for the three months period ending March 31, 2022;  management discussions and analyses for each period; , and officer certifications on the System for Electronic Document Analysis and Retrieval (SEDAR). Although the required filings have been made, trading in the Company’s common shares will not resume until: a cease trade order originally issued on May 11, 2022 by the Financial and Consumer Services Commission of News Brunswick has been revoked; and the TSX Venture Exchange has approved the reinstatement of the trading of the Company’s common shares (Evelyn project, Sonora).
  • Excellon Resources Inc., announced the appointment of its Chief Legal Officer & VP, Corporate Affairs (La Platosa mine, Durango).

ON SOCIAL RESPONSIBILITY

  • Fresnillo plc donated two garbage trucks with a capacity of 15 tonnes to the Municipality of Fresnillo, Zacatecas. Each donated truck can collect waste from 15,000 families daily. With this delivery, Fresnillo plc promotes and endorses its commitment to the people of Fresnillo.
  • Grupo Mexico announced an investment of MXP $38,000M (about USD $1.9 B) to expand its mining operations that will generate 11,000 jobs in the next five years in Sonora state. The governor of the state, Alfonso Durazo Montaño, and the executive vice president of Grupo México, Xavier García de Quevedo, announced this series of projects that are currently 47% complete and will be extended until 2027. García de Quevedo explained that the more than 11,000 jobs will be divided into 5,700 direct and indirect jobs in the construction stage and 5,660 permanent jobs in the operation. On the other hand, Irma Potes González, director of Community Development of Grupo México, explained that repair and rehabilitation works are currently being carried out on the drinking water distribution system,  in the municipalities of Nacozari and Cananea to improve the supply of water to the population.

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 quartz hydrothermal breccia from an intermediate sulphidation epithermal vein system in Chihuahua, Mexico.  Photo by Miguel A Heredia.

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

Hydrothermal breccia cemented by Manganese Oxides

By Miguel A Heredia

During the 28th week of the year (July 11th to July 17th, 2022), at least 21 press releases were announced by companies working in Mexico, with six communicating production and financial results, five disclosing deals and corporate issues, five reporting resources and developments of their properties, two announcing financing issues, one informing on exploration results, one commenting on Mexican issues, and one discussing social issues. ON MEXICO ISSUES, Mammoth Resources, Discovery Silver, GR Silver, and Oroco reported the best drilling intercepts in Mexico on the second week of July, 2022.  ON EXPLORATION, In Chihuahua, Mammoth released results from 4 holes drilled at its Tenoriba project.  ON MINING, GoGold reported Q2, 2022 production results from its Parral Tailings project, Chihuahua. Fortuna Silver announced Q2, 2022 production results from its San Jose mine, Oaxaca. Gatos Silver reported Q2, 2022 production and financial results from its Cerro Los Gatos mine in Chihuahua. Orla announced Q2, 2022 production and financial results from its Camino Rojo project, Zacatecas. Torex Gold reported Q2, 2022 production results from its El Limon-Guajes mine in Guerrero. Golden announced Q2, 2022 production results from its Rodeo mine in Durango.  ON FINANCING, Monarca announced that it will be extending the exercise period of a total of 55,900,000 share purchase warrants, all of which are exercisable at $0.075 per share (San Jose project, Chihuahua). Excellon announced that the New York Stock Exchange (NYSE) accepted its plan to regain compliance with the continued listing standards of the NYSE American Company Guide (La Platosa mine, Durango). ON RESOURCES AND DEVELOPMENT, GR Silver released first assay results from the 2022 resource expansion drill program being conducted at its San Marcial project, Sinaloa. Discovery Silver reported results of 22 holes from its phase 2 drill program from its Cordero project in Chihuahua. Bear Creek provided and operational and exploration update on its Mercedes mine, Sonora. Oroco released results from 14 holes drilled at its Santo Tomas project in Sinaloa.  Tarachi provided an update on the progress of its Magistral Mil and Tailings project in Durango. ON DEALS AND CORPORATE ISSUES, Silverton announced the appointment of its new CFO, and the resignation and new replacement of its Director (Pluton project, Durango). Excellon announced the appointment of its new President and CEO (La Platosa mine, Durango).  Fresnillo plc and Radius signed an exclusivity agreement on Plata Verde project, Chihuahua to earn a 70% interest in the project. Sierra Madre reported results from its annual general meeting of shareholders (La Tigra project, Nayarit). SilverCrest announced the appointment of a new member to its Board of Directors (Las Chispas project, Sonora).  ON SOCIAL RESPONSIBILITY, Aura released its 2021 sustainability report (Aranzazu mine, Zacatecas).

ON MEXICO ISSUE

  • Mammoth Resources, Discovery Silver, GR Silver, and Oroco reported the best drilling intercepts in Mexico on the second week of July, 2022. Details are shown in the table below:

ON EXPLORATION

  • Mammoth Resources Corp., provided results from 4 drill holes completed, for a total of 320.7m, at its Tenoriba project in Chihuahua. The most significant drill intercept were encountered in hole TEN-21-14 drilled at the Moreno Zone with 0.32 g/t Au and 6 g/t Ag (0.40 g/t AuEq) over 9m; hole TEN-21-15 drilled at Carneritos Zone with 0.52 g/t Au and 8 g/t Ag (0.63 g/t AuEq) over 30m, including 0.85 g/t Au and 12 g/t Ag (1.02 g/t AuEq) over 6m, including 0.86 g/t Au and 26 g/t Ag (1.21 g/t AuEq) over 3m; hole TEN 21-16 drilled at Carneritos Zone with 0.6 g/t Au and 1 g/t Ag (0.61 g/t AuEq) over 12m, and 0.44 g/t Au and 2 g/t Ag (0.47 g/t AuEq) over 85.7m, including 0.92 g/t Au and 3 g/t Ag (0.97 g/t AuEq) over 6m; and hole TEN-21-17 drilled at Carneritos Zone with 0.6 g/t Au and 3 g/t Ag (0.64 g/t AuEq) over 33m, including 1.06 g/t Au and 1 g/t Ag (1.07 g/t AuEq) over 9m. To date, the company has drilled 2,234.6m in 17 holes.

ON MINING

  • GoGold Resources Inc., reported Q2, 2022 production results from its Parral Tailings project, Chihuahua. The company produced 315,632 Oz Ag, 3,170 Oz Au, and 268,800 Lb Cu (575,301 Oz AgEq).
  • Fortuna Silver Mines Inc., announced Q2, 2022 production results from its San Jose mine, Oaxaca. The company milled 251,945 tonnes of 187 g/t Ag and 1.13 g/t Au, with metallurgical recoveries of 91-33% and 90.5% respectively, to produce 1.38M Oz Ag and 8.3K Oz Au.
  • Gatos Silver Inc., reported Q2, 2022 production and financial results from its Cerro Los Gatos mine in Chihuahua. The company milled 211,350 tonnes of 374 g/t Ag, 0.38 g/t Au, 2.8% Pb, and 5% Zn, with metallurgical recoveries of 90.4%, 48.9%, 90.5%, and 66.4% respectively, to produce 2.3M Oz Ag, 1.27K Oz Au, 11.8M Lb Pb, and 15.6M Lb Zn. Gatos Silver paid its first dividend of $20M to its partners in April 2022, and expects to receive another dividend in Q3, 2022. It also reported a cash balance of $450M as of June 30, 2022.
  • Orla Mining Ltd., announced Q2, 2022 production and financial results from its Camino Rojo project, Zacatecas. The company mined 2,038,831 tonnes of 0.71 g/t Au consisting of 1,657,327 tonnes of ore processed with an average grade of 0.8 g/t Au and 381, 504 tonnes of low grade ore-stockpiled with an average grade of 0.33 g/t Au. In Q2, 2022 Orla produced 25,672 Oz Au, and provided gold production guidance for the full year 2022 of 90K-100K Oz Au. Orla reported a cash balance of $66.7M at June, 2022.
  • Torex Gold Resources Inc., reported Q2, 2022 production results from its El Limon-Guajes mine in Guerrero. The company produced 123,180 Oz Au and sold 123,360 Oz Au, and is firmly on track to deliver on full year production guidance of 430K – 470K Oz Au.
  • Golden Minerals Company announced Q2, 2022 production results from its Rodeo mine in Durango. The company mined 213,925 tonnes of 2.6 g/t Au and 10 g/t Ag with metallurgical recoveries of 75.1% and 82.3% respectively to produce 3,004 Oz Au and 12,678 Oz Ag (3,158 Oz AuEq). Golden sold in doré 3,060 Oz Au and 13,180 Oz Ag (3,219 Oz AuEq).

ON FINANCING

  • Monarca Minerals Inc., announced that it will be extending the exercise period of a total of 55,900,000 share purchase warrants, all of which are exercisable at $0.075 per share. The Warrants were issued pursuant to a private placement which closed on August 20, 2020. The Company proposes to extend the expiry by one year, and accordingly, the new expiry date for the Warrants will be August 20, 2023 (San Jose project, Chihuahua).
  • Excellon Resources Inc., announced that the New York Stock Exchange (NYSE) accepted its plan to regain compliance with the continued listing standards of the NYSE American Company Guide related to insufficient stockholders’ equity. Excellon submitted its plan on May 31, 2022, and has been granted a plan period through October 30, 2023 (La Platosa mine, Durango).

ON RESOURCES AND DEVELOPMENT

  • GR Silver Mining Ltd., released first assay results from the 2022 resource expansion drill program being conducted at its San Marcial project, Sinaloa. Drilling highlights include hole SMSP22-003 with 547 g/t Ag, 0.01 g/t Au, 0.2% Pb, and 0.6% Zn over a true width (TW) of 15.2m, including 1,179 g/t Ag, 0.01 g/t Au, 0.2% Pb, and 0.5% Zn over a TW of 2m; hole SMSP22-012 with 324 g/t Ag, 0.1% Pb, and 0.2% Zn over a TW of 14.9m, including 1,541 g/t Ag, 0.1% Pb, and 0.3% Zn over a TW of 1m; hole SMSP22-02 with 128 g/t Ag, 0.01 g/t Au, 0.2% Pb, and 0.5% Zn over a TW of 14m; and hole SMSP22-10 with 193 g/t Ag, 0.2% Pb, and 0.4% Zn over a TW of 7.1m, including 921 g/t Ag, 0.1% Pb, and 0.3% Zn over a TW of 2m.
  • Discovery Silver Corp., reported results of 22 holes from its phase 2 drill program from its Cordero project in Chihuahua. Drilling highlights include holes C22-610 with 115 g/t Ag, 0.05 g/t Au, 3.7% Pb, and 4.1% Zn (388 g/t AgEq) over 32.6m, including 187 g/t Ag, 0.05 g/t Au, 6.5% Pb, and 7.2% Zn (660 g/t AgEq) over 17.8m, and 55 g/t Ag, 0.05 g/t Au, 0.9% Pb, and 1.6% Zn (147 g/t AgEq) over 15.7m; hole C22-605 with 89 g/t Ag, 0.13 g/t Au, 1.8% Pb, and 3% Zn (265 g/t AgEq) over 38.6m, including 137 g/t Ag, 0.2 g/t Au, 2.8% Pb, and 3.8% Zn (380 g/t AgEq) over 22.3m; hole C22-596 with 49 g/t Ag, 0.06 g/t Au, 1.2% Pb, and 2.5% Zn (184 g/t AgEq) over 60.3m, and 21 g/t Ag, 0.01 g/t Au, 0.1% Pb, and 1.2% Zn (70 g/t AgEq) over 36.4m; and hole C22-609 with 104 g/t Ag, 0.14 g/t Au, 3.2% Pb, and 4.4% Zn (375 g/t AgEq) over 4.9m, and 35 g/t Ag, 0.01 g/t Au, 0.9% Pb, and 1.4% Zn (115 g/t AgEq) over 17.7m, and 64 g/t Ag, 0.06 g/t Au, 1% Pb, and 1.4% Zn (150 g/t AgEq) over 33.1m. “The current set of results is focused on expansion of the open pit and the resource in the northeast of the deposit and will be incorporated in a resource update and Pre-Feasibility Study scheduled for completion in the fourth quarter of this year”.
  • Bear Creek Mining Corporation provided and operational and exploration update on its Mercedes mine, Sonora since its acquisition on last April, 2022.  The company has implemented operating strategies to improve Mercedes’ annual gold production and to initiate an aggressive exploration program. Bear Creek increased development work which resulted in having 15 working faces available, doubling the historical average of work areas. On exploration, the company is conducting Greenfield exploration at San Martin, Diluvio Scout, Margarita, and Neo Zones, where highly prospective structure related to Mercedes mine extend beneath post mineral cover. Drilling highlights include hole L22-652D drilled at Margarita Zone with 6.7 g/t Au and 68 g/t Ag over a true width (TW) of 2.2m; hole L22-649D drilled at Margarita Zone with 4.34 g/t Au and 53 g/t Ag over a TW of 1m; hole L22-655D drilled a Neo Zone with 2.44 g/t Au and 2 g/t Ag over a TW of 1.2m; and hole L22-659D drilled at Neo Zone with 4.43 g/t Au and 2 g/t Ag over a TW of 1.3m, and 2.98 g/t Au and 11 g/t Ag over a TW of 3.3m. To date, a total of 5,166m of RC / diamond have been drilled since the acquisition but additional 3,312m of greenfield exploration drill are planned for the remainder of 2022.
  • Oroco Resource Corporation released results from 14 holes (10,293m) drilled on the North Zone at its Santo Tomas project in Sinaloa. A total of 20 holes have been completed in the North Zone to date. Significant drill intercepts were encountered in hole N001 with 0.39% Cu, 0.01% Mo, 0.045 g/t Au and 2 g/t Ag (0.46% CuEq) over 255m; hole N002 with 0.38% Cu, 0.012% Mo, 0.025 g/t Au and 3 g/t Ag (0.44% CuEq) over 280.1m; hole N003 with 0.39% Cu, 0.014% Mo, 0.019 g/t Au, and 3 g/t Ag (0.45% CuEq) over 207.7m; hole N004 with 0.38% Cu, 0.012% Mo, 0.017 g/t Au, and 2 g/t Ag (0.44% CuEq) over 63.7m; hole N006 with 0.39% Cu, 0.004% Mo, 0.051 g/t Au, and 2 g/t Ag (0.44% CuEq) over 188.5m; hole N007 with 0.32% Cu, 0.005% Mo, 0.029 g/t Au, and 3 g/t Ag (0.37% CuEq) over 191.3m, and 0.32% Cu, 0.012% Mo, 0.018 g/t Au, and 3 g/t Ag (0.38% CuEq) over 109.9m; hole N008 with 0.38% Cu, 0.01% Mo, 0.038 g/t Au, and 3 g/t Ag (0.45% CuEq) over 328.3m; hole N009 with 0.76% Cu, 0.011% Mo, 0.021 g/t Au, and 5 g/t Ag (0.82% CuEq) over 32m, and 0.31% Cu, 0.027% Mo, 0.013 g/t Au, and 2 g/t Ag (0.42% CuEq) over 21.9m, and 0.29% Cu, 0.014% Mo, 0.011 g/t Au, and 2 g/t Ag (0.35% CuEq) over 123.6m, and 0.45% Cu, 0.016% Mo, 0.022 g/t Au, and 3 g/t Ag (0.53% CuEq) over 15.2m; hole  N010 with 0.36% Cu, 0.011% Mo, 0.029 g/t Au, and 2 g/t Ag (0.42% CuEq) over 311m; hole N011 with 0.39% Cu, 0.007% Mo, 0.039 g/t Au, and 3 g/t Ag (0.45% CuEq) over 230.8m; hole N012 with 0.35% Cu, 0.015% Mo, 0.025 g/t Au, and 3 g/t Ag (0.42% CuEq) over 296.9m; and hole N013 with 0.27% Cu, 0.009% Mo, 0.023 g/t Au, and 2 g/t Ag (0.32% CuEq) over 128m, and 0.36% Cu, 0.02% Mo, 0.018 g/t Au, and 2 g/t Ag (0.45% CuEq) over 95m, and 0.24% Cu, 0.009% Mo, 0.014 g/t Au, and 2 g/t Ag (0.29% CuEq) over 126m. The 2021-2022 drill program has now spanned 1,100m of strike length along the core of the North Zone mineral deposit at Santo Tomas project.
  • Tarachi Gold Corp., provided an update on the progress of its Magistral Mill and Tailings project in Durango. The company reported that the final stages of the metallurgical test work are nearing completion and results are expected to arrive within the next few weeks. It also commented that the design and engineering activities will commence upon receipt of the final metallurgical work. Tarachi´s Board and management are confident that its Magistral Mill and Tailings project will be a high-return, high-margin Au producer with the following metrics from the USD $1600-base price Preliminary Economic Assessment (PEA): All in Sustaining Cost (AISC) of USD $705/ Oz Au; After-tax IRR of 85%; and After-tax payback period of 12 months.

ON DEALS AND CORPORATE ISSUES

  • Silverton Metals Corp., announced the appointment of its new CFO, and the resignation and new replacement of its Director (Pluton project, Durango). 
  • Excellon Resources Inc., announced the appointment of its new President and CEO, effective July 28, 2022 (La Platosa mine, Durango).
  • Fresnillo plc, through its subsidiary Minera san Julian, and Radius Gold Inc., through its subsidiary Geonorte signed an exclusivity agreement to earn a 70% interest in Plata Verde project, Chihuahua. Fresnillo has to spend over a four year period a minimum cumulative amount of USD $5M on exploration activities at the Plata Verde project and make option payments to Radius totalling USD $3.117M, which include USD $1.117M to cover underlying property agreements to have the right to earn a 70% interest in the property. If the option is exercised, a new company (NewCo) would be set up to own the Plata Verde Project; NewCo would be owned 70% by Minera San Julian and 30% by Geonorte. Should either Party’s interest fall below 10% interest in NewCo that interest would convert to a 2% NSR.
  • Sierra Madre Gold and Silver Ltd., reported results from its annual general meeting of shareholders (La Tigra project, Nayarit).
  • SilverCrest Metals Inc., announced the appointment of a new member to its Board of Directors effective immediately (Las Chispas project, Sonora).

ON SOCIAL RESPONSIBILITY

  • Aura Minerals Inc., released its 2021 sustainability report. This report underscored the Company’s commitment to being an innovative, safe, responsible, and sustainable mining Company, and highlights initiatives planned across eight Environmental, Social, and Governance (ESG) Pillars (Aranzazu mine, Zacatecas).

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 quartz hydrothermal breccia cemented by Mn Ox from an epithermal vein system in Durango, Mexico.  Photo by Miguel A Heredia.

The Mining and Exploration News in Mexico: Highlights on the First Week of July, 2022

By Jorge Cirett

During the 27th week of the year (June 4th to July 10th, 2022), at least 26 press releases were announced by companies working in Mexico. To note, three companies posted exploration advances on their properties, one company poured its first gold and silver, one presented production results for the second quarter. Four companies reported on the opening or closing of financing rounds for a total of US$4.5 M and C$13.3 M, one company reported on a relevant investor share purchase. Five companies posted on work at its advanced properties, one company is to produce a PFS report and one other presented a NI 43-101 compliant report on reserves and resources of its recently acquired mine. One company informed on details of government resolutions on its mining concessions and an incoming indigenous consult.  One more company agreed with the Union representing its workforce on a profit-sharing scheme. The completion of the acquisition of a large silver property was announced.  ON MEXICO ISSUES, Mining companies on the BMV are resenting the lower prices on metals. ON EXPLORATION, in Sonora, Tocvan Ventures released surface sample results from El Picacho. In Chihuahua, Golden Minerals reported drilling results from nine holes at Yoquivo. In Zacatecas, Zacatecas Silver released drilling results at the El Cristo project, within its Zacatecas Silver concessions. ON MINING, SilverCrest Metals reported the first pour of gold and silver on its Las Chispas mine in Sonora. Endeavour Silver presented Q2 production results. ON FINANCING, Sonoro Gold closed its oversubscribed financing for $3 M. Silver Viper Minerals closed the final tranche of the private placement raising $306 K. Guanajuato Silver increased its private placement to C$13.3 M.  ON RESOURCES AND DEVELOPMENT, Zacatecas Silver is to prepare a PFS on its Esperanza project in Morelos. Bear Creek Mining filed a NI 43-101 compliant report on reserves and resources for its Mercedes mine in Sonora. GoGold Resources released results from drilling at El Favor deposit on its Los Ricos North project in Jalisco. Vizsla Silver reported drilling results from the San Antonio vein at the Panuco project in Sinaloa. Torex Gold released results from resource expansion and exploratory drilling in the broader Media Luna area in Guerrero. Mithril Resources released drilling results from El Refugio at its Copalquin project in Durango. ON DEALS AND CORPORATE ISSUES, Almaden Minerals has been notified its Ixtaca mining concessions in Puebla are “ineffective”, but the filing of applications made in conformity with the law. Newmont Corp. reached a profit-sharing agreement with the Union representing the workforce of its Peñasquito mine in Zacatecas. Endeavour Silver completed the acquisition of the Pitarrilla project in Durango.  ON SOCIAL RESPONSIBILITY, Almaden Resources will participate on a pilot program conducted by United Nations Expert Group Resource Management and the Economy Secretariat on sustainable development. Grupo Mexico continues to work on cultural development of mining communities.

ON MEXICO ISSUES

  • Mining companies on the Bolsa Mexicana de Valores (BMV) impacted by lower metal prices. From the start of the year to now, Industrias Peñoles shares have fallen 21.7%, Fresnillo 23.2%, Frisco 16.9% and Grupo Mexico 8.9%. During the year the year gold has depreciated 5.2%, silver 18.2% and copper 21.6%.

ON EXPLORATION

  • Tocvan Ventures Corp. released surface rock sample results from its El Picacho project in Sonora. A total of 65 samples were collected at the Murcielago prospect, of which 14 returned values over 0.1 gpt Au. Selected results from the sampling program comprise 7.19 gpt Au, 36 gpt Ag, 4.3% Pb; 4.52 gpt Au, 197 gpt Ag, 0.17% Cu; 4.8% Pb, 7.1% Zn; 3.25 gpt Au, 66 gpt Ag, 1.6% Pb; 2.71 gpt Au, 25 gpt Ag, 1.9% Zn; 2.71 gpt Au, 12 gpt Ag, 1.6% Pb, 1.3% Zn; 2.18 gpt Au, 15 gpt Ag, 1.3% Pb, 1.1% Zn; 1.50 gpt Au, 176 gpt Ag, 1.2% Zn. The samples are from a brecciated dolomitic limestone unit along a 450 m long trend with historic artisanal workings showing significant lead and zinc mineralization with gold and silver, in Jurassic sedimentary rocks.
  • Golden Minerals Co. reported results from the first nine holes on the third drill program at its Yoquivo project in Chihuahua. Highlighted true width results comprise 80.1 m @ 0.89 gpt Au, 64 gpt Ag (including 8.2 m @ 3.93 gpt Au, 120 gpt Ag; which includes 2.2 m @ 10.21 gpt Au, 139 gpt Ag); 0.4 m @ 30.80 gpt Au, 5,260 gpt Ag; 4.2 m @ 0.16 gpt Au, 229 gpt Ag; 1.7 m @ 0.13 gpt Au, 355 gpt Ag. “This most recent drilling has focused on testing the Pertenencia vein system to extend the known mineralized strike length into previously untested areas. The Pertenencia vein has continued to return strong gold-silver grades, and the vein remains open to depth and to the north”.
  • Zacatecas Silver Corp. released results from drilling at El Cristo project, on its Zacatecas Silver property in Zacatecas. Highlighted core length intervals comprise 9.53 m @ 167 gpt Ag; 1.45 m @ 11 gpt Ag, 0.18 gpt Au, 0.5% Pb, 1.6% Zn; 0.8 m @ 94 gpt Ag; 1.08 m @ 90 gpt Ag; 0.65 m @ 1.2 gpt Au, 565 gpt Ag, 1.3% Pb, 2.7% Zn; 1.2 m @ 134 gpt Ag, 0.1 gpt Au, 0.2% Zn; 4.36 m @ 48 gpt Ag, 0.19 gpt Au, 1.5% Pb, 2.7% Zn; 0.5 m @ 20 gpt Ag, 0.23 gpt Au, 1.0% Pb, 17.5% Zn. The epithermal intermediate sulfidation system at El Cristo crops out within a dilational zone that is at least 4 km long and up to 600 m wide.

ON MINING

  • SilverCrest Metals Inc. reported the first pour of silver and gold at Las Chispas mine, in Sonora. The plant commissioning is on track to reach its 1,250 tonnes per day capacity. “The plant started in late May 2022 and milled an estimated 12,700 tonnes of low-grade ore during June 2022”.
  • Endeavour Silver Corp. presented second quarter production results of 1.36 M Oz Ag, 9,289 Oz Au, or 2.1 M Oz AgEq. At Guanaceví, in Durango, 94 K tonnes were processed at 1,045 tonnes per day (tpd), grading 465 gpt Ag, 1.37 gpt Au, recovering 85.0% Ag, 88.9% Au, to produce 1.19 M Oz Ag, 3,680 Oz Ag. At Bolañitos, in Guanajuato, 107.3 K tonnes were processed at 1,193 tpd, averaging 54 gpt Ag, 1.77 gpt Au, recovering 88.6% Ag, 91.8% Au, to produce 165 K Oz Ag, 5,609 Oz Au. On other developments: Recent drilling has intercepted high-grade gold and silver at Guanceví; Drilling continued to intersect high-grade mineralization on the La Colorada structure at Parral, in Chihuahua; In the coming months the company expects to make a formal construction decision on La Terronera, in Jalisco.    

ON FINANCING

  • Sonoro Gold Corp. closed an oversubscribed non-brokered private placement for aggregate gross proceeds of $3 M (Cerro Caliche, Sonora).
  • Starcore International Mines Ltd. approved a non-brokered private placement in July 4, 2022, to raise up to $1.2 M in gross proceeds. On the next day Starcore reported the closing of the placement confirming $1.2 M in gross proceeds (El Creston, Sonora; San Martin, Queretaro).
  • Sonoro Gold Corp. informed that R. Stuart Angus reported the acquisition in June of $485 K in shares of Sonoro Gold, operation after which he owns 9.95 M shares and 8.35 M warrants of the corporation, representing 7.1% of the outstanding shares on a non-diluted basis and 12.4% on a partially diluted basis (Cerro Caliche, Sonora).
  • Silver Viper Minerals Corp. closed the final tranche of its non-brokered private placement for aggregate gross proceeds of $306 K (La Virginia, Sonora).
  • Guanajuato Silver Company Ltd. expanded the size of its previously announced brokered private placement to C$13.3 M with the option to increase the financing an additional 15%. (Topia, Durango; El Cubo, Guanajuato).

ON RESOURCES AND DEVELOPMENT

  • Zacatecas Silver Corp. announced the engagement of Palaris Ltd. to lead a pre-feasibility study (PFS) on the Esperanza project in Morelos.
  • Oroco Resource Corp. resumed drilling at its Santo Tomas project in Sinaloa. Operations started at the end of federal military operations in the area. “Core logging and assaying have continued during the period of drill stoppage, with an improvement in methods of handling and analysis, thereby better preparing the geological team for an increase in the rate of core processing”.
  • Bear Creek Mining Corp. filed a NI 43-100 compliant technical report on its Mercedes mine, in Sonora. The report provides a mineral reserves and resources estimate to December 31, 2021.
  • GoGold Resources Inc. released results from six holes from El Favor East deposit at its Los Ricos North project in Jalisco. Highlighted core length intercepts comprise 18.8 m @ 0.62 gpt Au, 156 gpt Ag (including 7.4 m @ 1.50 gpt Au, 344 gpt Ag); 11.4 m @ 0.37 gpt Au, 90 gpt Ag; 4.5 m @ 0.27 gpt Au, 76 gpt Ag; 2.8 m @ 0.36 gpt Au, 76 gpt Ag; 2.0 m @ 0.37 gpt Au, 127 gpt Ag; 1.8 m @ 0.24 gpt Au, 138 gpt Ag; 2.2 m @ 0.80 gpt Au, 227 gpt Ag; 9.3 m @ 0.64 gpt Au, 155 gpt Ag (including 0.7 m @ 5.23 gpt Au, 1,196 gpt Ag); 0.7 m @ 4.34 gpt Au, 1,295 gpt Ag.
  • Vizsla Silver Corp. reported results from seven holes on the San Antonio vein of the Cordon de Oro corridor at its Panuco project in Sinaloa. Highlighted true width intercepts comprise 6.40 m @ 5.76 gpt Au, 621 gpt Ag (including 0.57 m @ 34.2 gpt Au, 2,940 gpt Ag); 6.0 m @ 0.37 gpt Au, 124 gpt Ag; 4.89 m @ 0.60 gpt Au, 122 gpt Ag; 7.50 m @ 1.15 gpt Au, 213 gpt Ag; 3.15 m @ 2.29 gpt Au, 549 gpt Ag; 4.20 m @ 1.19 gpt Au, 202 gpt Ag; 2.0 m @ 4.75 gpt Au, 355 gpt Ag; 2.01 m @ 1.29 gpt Au, 226 gpt Ag.
  • Torex Gold Resources Inc. released results from resource expansion and exploratory drilling completed in the broader Media Luna area in Guerrero. The work extends mineralization to the south and west of the EPO deposit and identified a potential new zone of mineralization between the Media Luna deposit and the Media Luna West target. Highlighted true width results comprise 9.73 m @ 8.51 gpt Au, 33 gpt Ag, 1.57% Cu; 17.25 m @ 4.18 gpt Au, 25 gpt Ag 1.74% Cu; 35.63 m @ 2.05 gpt Au, 30 gpt Ag, 1.05% Cu; 16.48 m @ 8.70 gpt Au, 4 gpt Ag, 0.54% Cu; 6.31 m @ 4.00 gpt Au, 19 gpt Ag, 0.78% Cu; 5.10 m @ 2.79 gpt Au, 9 gpt Ag, 0.27% Cu. Infill, step-out, exploration, ore control and definition drilling budgeted includes $19 M at Media Luna, $6 M at ELG Underground, $9 M in near mine and regional and $5 M in definition and grade control in the ELG open pit and underground. “The Media Luna deposit is hosted within the Mesozoic carbonate-rich Morelos Platform, which has been intruded by Paleocene stocks, sills, and dykes of granodioritic to tonalitic composition. Skarn-hosted gold-silver-copper mineralization is developed within the sedimentary rocks along the contacts of intrusive rocks as well as within altered dykes of the skarn envelope….Mineralization at Media Luna is hosted in skarn that developed at the contact of the intrusive granodiorite and overlying sedimentary rocks. The skarn is characterized by a mineral assemblage of pyroxene, garnet, and magnetite. Metal deposition and sulfidation occurred during retrograde alteration and is associated with a mineral assemblage comprising amphibole, phlogopite, chlorite, and calcite ± quartz ± epidote as well as variable amounts of magnetite and sulfides, primarily pyrrhotite. Additional mineralization is associated with skarn developed within and along dykes and sills above the main granodiorite intrusion”.
  • Mithril Resources Ltd. released drilling results from deep drilling at El Refugio, at its Copalquin project in Durango. Highlighted core length results comprise 5.67 m @ 4.37 gpt Au, 174 gpt Ag (including 1.67 m @ 9.64 gpt Au, 399 gpt Ag); 1.0 m @ 1.68 gpt Au, 67 gpt Ag; 1.0 m @ 1.27 gpt Au, 46 gpt Ag; 0.50 m @ 2.13 gpt Au, 118 gpt Ag; 0.90 m @ 1.04 gpt Au, 11 gpt Ag.

ON DEALS AND CORPORATE ISSUES

  • Almaden Minerals Ltd. informed the Ministry of Economy has officially notified Almaden that the company’s mining concessions titles relating to the Ixtaca project in Puebla are “ineffective”, but that the title applications were filed in conformity with the law. This is understood to mean that “the mineral title has reverted to application status, and that these applications preserve the mineral rights for Almaden but do not allow the Company to engage in exploration, until such time as Economia completes its court-ordered indigenous consultation in the area covered by the mineral title applications”. Almaden also announced that the environmental permit application will be submitted once the Human Rights Impact Assessment (HRIA) and the indigenous consultation process are finalized.
  • Newmont Corp. announced it has reached a profit-sharing agreement with the Union at its Peñasquito mine in Zacatecas. Newmont will pay its unionized workforce an uncapped profit-sharing bonus up to 10%, “with an immediate cost equivalent of $70 million, which is representative of the payments related to 2021 results”.
  • Endeavour Silver Corp. announced the completion of its acquisition of the Pitarrilla project in Durango. The deal involved the bought of $70 M in shares from Silver Standard Ventures Inc. subsidiary (SSR Durango S.A. de C.V.) and a further 1.25% NSR on Pitarrilla. Endeavour plans to invest $1.8 M for drilling and exploration to verify the historical data and define a current resource in 2022.

ON SOCIAL RESPONSIBILITY

  • Almaden Minerals Ltd. reported the Ixtaca project in Puebla was selected to be included in a pilot project conducted by the United Nations Expert Group Resource Management (UNRMS) in coordination with Mexico’s Ministry of Economy (Secretaría de Economía). The UNRMS “considers a range of socio-economic, technological, and knowledge factors that are important for the sustainable development of each project”.
  • Grupo Mexico continues with its support for cultural development of the mining communities. This week the Orchestras and Choruses from Buenavista and La Caridad made a presentation in Hermosillo, Sonora, along with other cultural institutions and organizations, under the event “El Cobre Hecho Arte”.

On the image below: Weathered monzonite porphyry on a project in the Sonoran Desert. Picture by Jorge Cirett.

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

Banded chalcedonic quartz vein

By Miguel A Heredia

During the 26th week of the year (June 27th to July 3rd, 2022), at least 23 press releases were announced by companies working in Mexico, and 1 news were published by the media, with eleven disclosing deals and corporate issues, five reporting resources and developments of their properties, four announcing financing issues, two informing on exploration results, one commenting on Mexican issues, and one communicating production and financial results. ON MEXICO ISSUES, Mammoth Resources, Prime Mining, and Capitan Mining reported the best drilling intercepts in Mexico on the fifth week of June, 2022. ON EXPLORATION, In Sonora, Silver Spruce submitted an exploration plan for 500-1000m of trenching and for 1,000-2,000m of initial RC drilling for its Jackie project. In Chihuahua, Mammoth provided results from 3 drill holes completed at its Tenoriba project. ON MINING, Altaley reported production and financial results from its Tahuehueto project, Durango. ON FINANCING, Infinitum Copper announced a non-brokered private placement to raise up to CAD $1M (Adelita project, Sonora). Sierra Madre entered into an agreement in connection with a private placement for gross proceeds of up to $10M (La Guitarra project, State of Mexico). Prismo closed its previously announced financing for gross proceeds of $682,125 (Palos Verdes project, Sinaloa). Tocvan closed a private placement for gross proceeds of CAD $5.125M (El Pilar project, Sonora). ON RESOURCES AND DEVELOPMENT, Altaley provided an update on the commissioning, pre-production, and construction progress at its Tahuehueto project in Durango. Capitan Mining reported results from 3 RC holes drilled at its Cruz de Plata project in Durango. Prime Mining reported results from its expanded Phase 2 step-out and infill drilling at its Los Reyes project, Sinaloa. Regency Silver commenced a 2,000m drill program at its flagship Dios Padre Silver project. Osisko Development announced a Mineral Resource Estimate for its San Antonio Gold project in Sonora.   ON DEALS AND CORPORATE ISSUES, Discovery Silver reported results from its annual general meeting of shareholders (Cordero project, Chihuahua). Gatos Silver announced the appointments of its new CFO and VP Corporate Development and Business Improvement effective July 16, 2022 (Cerro Los Gatos, Chihuahua). Prismo announced the appointment of a new member to its Board of Directors (Palos Verdes project, Sinaloa). Silver Spruce informed that it has fulfilled the terms of the earn-in agreement with Colibri, earned its 50% interest and signed a JV agreement to move forward with additional exploration at its Jackie project, Sonora.  Almaden reported results from its annual general meeting of shareholders (Ixtaca project. Puebla). Fortuna Silver announced the appointment of a new member to its Board of Directors and reports results from its annual general meeting of shareholders (San Jose mine, Oaxaca). Fortune Bay begun to trade on the OTCQX Best Market under the symbol FTBYF (Ixhuatán project, Chiapas). Magna announced results from its annual general meeting of shareholders (San Francisco mine, Sonora).  Guanajuato Silver signed a binding definitive agreement with Great Panther to acquire all of the Great panther Mexican assets. Americas Gold announced the appointment of a new member to its Board of Directors and reported results from its annual general meeting of shareholders (Cosala mine, Sinaloa). ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUE

  • Mammoth Resources Corp., Prime Mining Corp., and Capitan Mining Inc., reported the best drilling intercepts in Mexico on the fifth week of June, 2022. Details are shown in the table below:

ON EXPLORATION

  • Silver Spruce Resources Inc., submitted an exploration plan for 500-1000m of trenching and for 1,000-2,000m of initial RC drilling to evaluate the principal targets located near the center of the concession at its Jackie project in Sonora. The initial permit will include 48 trench-track location and 36 drill pads.
  • Mammoth Resources Corp., provided results from 3 drill holes completed, for a total of 378.65m, at its Tenoriba project in Chihuahua. The most significant drill intercept was encountered in hole TEN-21-12 drilled at the Carneritos Zone with 0.45 g/t Au and 5 g/t Ag (0.51 g/t AuEq) over 46.5m. These two drill holes (Carneritos and Moreno) are separated one from the other by over 2.5km. The company also reported an additional interval of the hole TEN-21-08 collared at the Moreno Zone which returned 0.98 g/t Au, and 15 g/t Ag (1.18 g/t AuEq) over 37.5m, including 1.13 g/t Au, 21 g/t Ag, and 0.55% Cu (2.34 g/t AuEq) over 18m, plus 0.08 g/t Au, 0.4 g/t Ag, and 0.45% Cu (0.65 g/t AuEq) over 12m. To date, the company has drilled 1,913.9m in 13 holes.

ON MINING

  • Altaley Mining Corporation, reported that to date it has produced approximately 260 tonnes of bulk concentrate at its Tahuehueto mine in Durango. Two shipments of approximately 30 tonnes each have been shipped to Trafigura for sale. Revenue received from the first shipment was approximately USD $42K paid for gold, silver, and lead. Another 70 tons of concentrate is in the process of being shipped from Tahuehueto to Tepehuanes subsequently to be trucked and sold to Trafigura in the coming days. The company estimates that there are approximately another 150 tonnes of concentrate available, drying on the mill patio and within the thickeners available to be filtered for drying on the patios. 

ON FINANCING

  • Infinitum Copper Corp., announced a non-brokered private placement to raise up to CAD $1M. The financing will consist of up to 5K units at a price of CAD $0.20 per unit for gross proceeds of up to CAD $1M. Part of the gross proceeds will be used to fund exploration at its Adelita project in Sonora.
  • Sierra Madre Gold and Silver Ltd., entered into an agreement in connection with a private placement for gross proceeds of up to $10M. The Company intends to use the net proceeds of the Offering for the development of the La Guitarra Property, advancement of engineering studies, and general working capital purposes.
  • Prismo Metals Inc., closed its previously announced financing for gross proceeds of $682,125. The proceeds will be primarily used to drill a minimum of 2,000m of core at its Palos Verdes project in Sinaloa.
  • Tocvan Ventures Corp., closed a private placement for gross proceeds of CAD $5.125M. The gross proceeds will be used to advance El Pilar and Picachos project in Sonora, and for general working capital purposes.

ON RESOURCES AND DEVELOPMENT

  • Altaley Mining Corporation provided an update on the commissioning, pre-production, and construction progress at its Tahuehueto project in Durango. The operations team has been resolving various start-up issues related to the water supply pipeline and mill commissioning. Processing has been stabilized with the mill achieving ore throughput up to 350 tonnes per day (tpd). Mill throughput is estimated to remain at current levels over the next two weeks. The tailings storage facility is in the final stages of construction and expected to be ready to receive dry stack tailings within 45 days. The Tahuehueto Laboratory is essentially ready to be operational and technicians are calibrating ICP and ancillary equipment expected to be fully operational over the next few days. Installation of the second 500 tpd ball mill is scheduled over the next several months and the Company anticipates the project will be able to commission this mill during Q4 2022 and ramp up production towards the mine’s designed capacity of 1,000 tpd near the end of 2022.
  • Capitan Mining Inc., reported results from 3 RC holes drilled at the Jesus Maria Zone within its Cruz de Plata project in Durango. Drilling highlights include hole 22-JMRC-12 with 100 g/t Ag, 0.25 g/t Au, 0.2% Pb, and 0.4% Zn (144 g/t AgEq) over 21.3m, including 383 g/t Ag, 0.58 g/t Au, 0.9% Pb, and 0.8% Zn (489 g/t AgEq) over 1.5m, including 239 g/t Ag, 0.33 g/t Au, 0.9% Pb, and 0.9% Zn (328 g/t AgEq) over 1.5m, plus 26 g/t Ag, 0.14 g/t Au, 0.4% Pb, and 0.7% Zn (76 g/t AgEq) over 10.7m, including 42 g/t Ag, 0.16 g/t Au, 0.9% Pb, and 1.7% Zn (147 g/t AgEq) over 3m; and hole 21-JMRC-07 with 57 g/t Ag, 0.1 g/t Au, 0.1% Pb, and 0.2% Zn (77 g/t AgEq) over 22.9m, including 96 g/t Ag, 0.04 g/t Au, 0.05% Pb, and 0.06% Zn (103 g/t AgEq) over 1.5m, including 342 g/t Ag, 0.39 g/t Au, 0.6% Pb, and 0.9% Zn (428 g/t AgEq) over 1.5m. With these results, mineralization has been confirmed over 800m of strike length and remains open at depth. Assays are still pending for 9 RC holes completed at the Jesus Maria Zone.
  • Prime Mining Corp., reported results from its expanded Phase 2 step-out and infill drilling on the Tahonitas Zone at its Los Reyes project, Sinaloa. Now, this phase is planned to 70,000m. Drilling highlights include hole 22TA-18 with 6.08 g/t Au and 103 g/t Ag over a true width (TW) of 2.9m, including 13.5 g/t Au and 127 g/t Ag over a TW of 1.1m; hole 22TA-23 with 3.12 g/t Au and 24 g/t Ag over a TW of 3.1m, including 7.67 g/t Au and 34 g/t Ag over a TW of 1.4m; hole 22TA-29 with 1.37 g/t Au and 11 g/t Ag over a TW of 6.7m; hole 22TA-17 with 0.86 g/t Au and 51 g/t Ag over a TW of 9.5m, including 4.36 g/t Au and 228 g/t Ag over a TW of 1.1m; hole 22TA-27 with 0.92 g/t Au and 104 g/t Ag over a TW of 2,2m, including 1.97 g/t Au and 244 g/t Ag over a TW of 1.3m; and hole 22TA-31 with 0.99 g/t Au and 41 g/t Ag over a TW of 2.2m, including 2.78 g/t Au and 38 g/t Ag over a TW of 0.8m, plus 1.59 g/t Au and 2 g/t Ag over a TW of 0.8m. To date the company has drilled over 81,000m and completed 310 holes at Los Reyes project. The Phase 2 has now completed 54,466m in 188 holes.
  • Regency Silver Corp., commenced a 2,000m drill program at its flagship Dios Padre Silver project in Sonora. The 2,000 metre drill program is designed to test a large IP anomaly only 550 metres to the north of the existing Dios Padre historical workings to determine whether it represents a significant continuation of the mineralization at Dios Padre.
  • Osisko Development Corp., announced a Mineral Resource Estimate for its San Antonio Gold project in Sonora and provided an operation update. Osisko reported Indicated Resources of 14.9M tonnes with grades of 1.2 g/t Au and 3 g/t Ag for a total of 576K Oz Au and 1.37M Oz Ag contained, and Inferred Resources of 16.6M tonnes with grades of 1 g/t Au and 3 g/t Ag for a total of 544K Oz Au and 1.76M Oz Ag contained. The Mineral Resource Estimate encompasses five deposits: Sapuchi, Golfo de Oro, California, Calvario and High Life over approximately 2.8km along strike, a maximum width of 600m to a maximum depth of 300m below surface, and is based on 84,454m of current and verified historic drilling in 579 holes, of which 27,870m of drilling in 177 holes were drilled by the Company in 2021. The company also provided an operation update and informed that since its acquisition in November 2020, it has constructed a leach pad and carbon in column plant to process stockpiled mineralized material (1.1M tonnes with an average grade of 0.57 g/t Au), and reported that currently 680K tonnes of mineralized material has been placed and processed.

ON DEALS AND CORPORATE ISSUES

  • Discovery Silver Corp., reported results from its annual general meeting of shareholders (Cordero project, Chihuahua).
  • Gatos Silver Inc., announced the appointments of its new CFO and VP Corporate Development and Business Improvement effective July 16, 2022 (Cerro Los Gatos, Chihuahua).
  • Prismo Metals Inc., announced the appointment of a new member to its Board of Directors (Palos Verdes project, Sinaloa).
  • Silver Spruce Resources Inc., informed that it has fulfilled the terms of the earn-in agreement with Colibri, earned its 50% interest and signed a JV agreement to move forward with additional exploration at its Jackie project, Sonora.
  • Almaden Minerals Ltd., reported results from its annual general meeting of shareholders. Shareholders also approved the appointment of Davidson & Company LLP as auditors of the Company for the ensuing year (Ixtaca project. Puebla).
  • Fortuna Silver Mines, Inc., announced the appointment of a new member to its Board of Directors and reports results from its annual general meeting of shareholders (San Jose mine, Oaxaca).
  • Fortune Bay Corp., begun to trade on the OTCQX Best Market under the symbol FTBYF. Bay’s common shares will continue to trade on the TSX Venture Exchange under the symbol FOR and on the Frankfurt Stock Exchange under the symbol 5QN.  (Ixhuatán project, Chiapas).
  • Magna Gold Corp., announced results from its annual general meeting of shareholders. It also informed that the company has completed the acquisition of its flagship San Francisco mine in Sonora and stated that its objective is to bring the San Francisco mine back to its most productive days and beyond. Magna also mentioned that its currents share price does not adequately or at all reflect our achievements and given the nature of current market conditions the sector has fallen out of favour.
  • Guanajuato Silver Company Ltd., signed a binding definitive agreement with Great Panther Mining Ltd., to acquire all of the Great Panther Mexican assets, including Topia mine, Durango and production facilities, The San Ignacio mine, The Guanajuato Mine Complex (it will henceforth referred as the Valenciana mine), and the Cata processing plant in Guanajuato, for a total consideration of USD $14.7M; satisfied by USD $6,7M in Guanajuato Silver shares and USD $8M in cash, plus up to USD $2M in additional payments.
  • Americas Gold and Silver Corporation announced the appointment of a new member to its Board of Directors and reported results from its annual general meeting of shareholders (Cosala mine, Sinaloa).

ON SOCIAL RESPONSIBILITY

  • No relevant news.

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

On the picture above, banded chalcedonic quartz from an epithermal vein system, in a project in Durango, Mexico.  Photo by Miguel A Heredia.