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

By Jorge Cirett

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

ON MEXICO ISSUES

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

ON EXPLORATION

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

ON MINING

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

ON FINANCING

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

ON RESOURCES AND DEVELOPMENT

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

ON DEALS AND CORPORATE ISSUES

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

ON SOCIAL RESPONSIBILITY

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

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

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

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

Hydrothermal breccia

By Miguel A Heredia

During the thirty three week of the year (August 24th to August 30th, 2020), at least 39 press releases were announced by companies working in Mexico, with eleven commenting on Mexican issues, ten disclosing deals and corporate issues, six informing on exploration results, five announcing financial rounds, four reporting on resources and developments of their mine operations, two communicating production and financial results, and one discussing social issues. ON MEXICO ISSUES, AMLO stated in one of its morning press conferences that the Mining Fund will be re-activated and re-organized. The Undersecretary of Mining, The Mexican Mining Chamber (CAMIMEX) demanded that the Mining Fund go back to communities. Francisco Quiroga spoke about the role that the mining industry plays in Mexico. Mexico Mining sector captures USD $873M of Foreign Direct Investment (FDI). Fernando Alanis, President of the Mexican Mining Chamber (CAMIMEX), declared that the investment in mining exploration in Mexico could fall to its lowest level in 14 years. The Undersecretary of Mining, Francisco Quiroga, informed that in Mexico, mining is promoted without environmental disasters or social conflicts. Coeur Mining Inc, a US mining company, claimed MXP $1,000M (over USD $46M) to the government of Mexico.  Jorge Mátar Vargas, a businessman from Morelos, said that the investment of the Esperanza Silver mining project would reactivate the economy of Morelos, given the crisis it faces due to the COVID-19 pandemic. Napoleón Gómez Urrutia, senator and leader of one of the Mexican mining union tweeted that he won a labor lawsuit against Grupo Peñoles. Sergio Almazán is the new President of the Association of Metallurgical, Mining and Geologist Engineers of Mexico A.C (AIMMGM). Francisco Quiroga, Undersecretary of Mining of Mexico, declared that the recovery of the prices of the main minerals produced in Mexico will reinforce mining investment projects in the country. ON EXPLORATION, In Sonora, Tocvan released results from the structural analysis carried out at its El Pilar project, Silver Viper reported results from ten drill holes collared at its El Rubi project, and Tarachi announced the beginning of a 5,000m drilling program at its Tarachi Gold project. In Sinaloa, Vizsla released drill results from its Panuco project. In Durango, Mithril released drilling results from its Copalquin project. ON MINING, Impact reported Q2, 2020 production and financial results from its Zacualpan mining district in the State of Mexico. Santacruz reported the filing of a NI43-101 technical report for its Zimapan mine in Hidalgo.  ON FINANCING, Redstar completed a non-brokered private placement for gross proceeds of CAD $7M (Heliodor properties, Mexico). Kootenay closed its previously announced private placement for gross proceeds of $7M (Columba project, Chihuahua). Capitan Mining closed a private placement for gross proceeds of $3,840,855 (Peñoles project, Durango). VVC announced a non-brokered private placement to raise gross proceeds of up to CAD $3.3M (Kaity Copper project, Chihuahua).  Gold Resource declared its August monthly dividend to shareholders (Arista mine, Oaxaca). ON RESOURCES AND DEVELOPMENT, Mexus provided an update on progress at its Santa Elena mine in Sonora.  Silver Dollar reported phase 3 drilling results not previously reported by SilverCrest from its la Joya project in Durango. GoGold announced the filing of a NI43-101 technical report on the initial mineral resource estimate for their Los Ricos South project in Jalisco. Santacruz reported the filing of a NI43-101 technical report for its Zimapan mine in Hidalgo. Golden Minerals released results from its resource definition drill program at its Rodeo project in Durango.  ON DEALS AND CORPORATE ISSUES, Redstar announced the acquisition of Heliodor Metals Limited and appointed its new CEO. Orla appointed its Senior VP Exploration (Camino Rojo project, Zacatecas). Sonoro announced that its board of directors approved the change of the company´s name to Sonoro Gold Corp (Cerro Caliche project, Sonora). Azure presented results from its annual general meeting of shareholders (Mesa de Plata project, Sonora).   Newmont announced the replacement of the General Manager of the Peñasquito mine, Zacatecas.  Silver Spruce granted stock options to its CFO (El Mezquite project, Sonora). SilverCrest acquired El Picacho property near its Chispas project in Sonora. Orogen (former Evrim) optioned the Sarape Au property in Sonora to Minera Hochschild SA de CV, a subsidiary of Hochschild Mining PLC. Comet executed a share purchase a JV agreement with El Alamo Resource to acquire 100% interest in the Santa Teresa project in Baja California. ON SOCIAL RESPONSIBILITY, Fresnillo plc trains its staff on COVID-19.

ON MEXICO ISSUES

  • Andrés Manuel López Obrador (AMLO), President of Mexico, stated in one of its morning press conferences held in Zacatecas that the Mining Fund will be re-activated and re-organized. He cited that, in the case of the Mining Fund, the resources reached the governments municipalities, but not to the communities.
  • The Mexican Mining Chamber (CAMIMEX), demanded that the Mining Fund go back to communities. Mexico imposed a 7.5% royalty in 2014, plus a special mining tax of 0.5% on gold and silver operations. Most of the proceeds go to social infrastructure projects in mining communities, distributed through the Mining Fund. However, under a reorganization announced by President Andrés Manuel López Obrador, the funds were redirected to a federal budget for schools. Although AMLO has said that the previous system recorded corruption cases and sometimes the cash for projects did not arrive, some industry experts consider that the Mining Fund is a critical tool for mines and projects to win and maintain support of the communities.
  • The Undersecretary of Mining, Francisco Quiroga, spoke about the role that the mining industry plays in Mexico. He said that mining, which is carried out generally in remote locations with difficult access, is a great generator of foreign exchange, as it is mainly an exporter in the case of Mexico, where it contributes more than 4% of GDP. He also emphasized that only small and medium-sized mines require investments of between USD $350-500M, and that medium-scale mines generate 1,000 to 2,000 direct jobs and around 5,000 – 10,000 indirect jobs.
  • Mexico Mining sector, captures USD $873M of Foreign Direct Investment (FDI) in the first half of 2020, a year-on-year decline of 18.6%, according to statistics from the Ministry of the Economy. About 25% of the Mexican territory has been explored in detail, so there is a great opportunity for the development of new projects. Mexico places 12 to 19 minerals year after year within the top 10 production places globally. Development risk in mining is concentrated in the exploration stages and decreases as the operation stage progresses.
  • Fernando Alanis, President of the Mexican Mining Chamber (CAMIMEX), declared that the investment in mining exploration in Mexico could fall to its lowest level in 14 years, although the drop would be even greater given that it does not consider the impact of the COVID-19 pandemic. He said that in recent years exploration activities in the country have suffered a strong fall due to the uncertainty of investors. “Mexico has lost attractiveness as a mining investment destination… that is a fact”. “We have seen a very important reduction of more than 150 exploration companies that are no longer in Mexico and that is worrying.”
  • The Undersecretary of Mining, Francisco Quiroga, informed that in Mexico, the mining sector has to do it environmentally sustainable and socially inclusive, with zero fatalities, no environmental disasters or generating social conflicts. He also informed that active mining concessions represent only four million hectares, that is, a little more than 2% of the national territory and after conducting a review, total concessions decreased from 25 thousand to 21 thousand, which represented a reduction from 21 million to 16 million hectares.
  • Coeur Mining Inc , a US mining company, claimed MXP $1,000M (over USD $46M) to the government of Mexico. Coeur, the fifth silver producer in Mexico, seeks to obtain this compensation from the federal government because the Mexican Tax Administration (SAT) did not refund the VAT. This is the second case that is presented so far in 2020. The first was the notice of the Canadian company First Majestic Silver Corp to the Mexican government, also due to an action by the SAT. On May 13, in its notification, it communicated that the claim amounts to USD $500M, in addition to the interest generated, expenses and costs applicable in the arbitration procedure.
  • Jorge Mátar Vargas, a businessman from Morelos, said that the investment of the Esperanza Silver mining project would reactivate the economy of Morelos, given the crisis it faces due to the COVID-19 pandemic. He also argued that with the Esperanza Silver mining project, state economic activity would be detonated. It would help reduce the deficit of jobs in the state and rescue small entrepreneurs. This project represents a millionaire private investment for the entity, with the capacity to generate hundreds of direct and indirect jobs and is a potential to strengthen the local economy.
  • Napoleón Gómez Urrutia, senator and leader of one of the Mexican mining union tweeted (by the way, a very strange tweet), that he won a labor lawsuit against Grupo Peñoles for unjustified dismissal, for which the company must pay him MXP $1M of lost wages and benefits for 12 years and 8 months that he worked for Minera Mexicana La Ciénega.
  • Sergio Almazán is the new President of the Association of Metallurgical, Mining and Geologist Engineers of Mexico A.C (AIMMGM) for the biennium 2020-2022.
  • Francisco Quiroga, Undersecretary of Mining of Mexico, declared that the recovery of the prices of the main minerals produced in Mexico will reinforce mining investment projects in the country and will allow mining to be part of the competitive advantage for other industries in the country such as manufacturing.

ON EXPLORATION

  • Tocvan Ventures Corp., JV partner of Colibri Resource Corporation, released results from the structural analysis carried out at its El Pilar project in Sonora. “The initial overview of the 3D inversion of magnetic susceptibility data has revealed stand-out significant major structures that are universally associated with “plumbing” systems for gold-silver fluid flow and deposition. Structures appear as shear zones, faults, brecciated rock, rotational gashes within shear zones and other such dilation structures”. The main identified structure is a 1,000m by 250m large NW-SE trending structure bounded by additional N-S trending structures with approximate lengths of 300m. The NW-SE structure as been interpreted as a structural corridor holding a shear zone with rotational features that suggest excellent means of plumbing for metal-mineral-rich fluids to flow through and deposit.
  • Silver Viper Minerals Corp., reported results from ten drill holes collared its La Virginia project in Sonora. Of the ten holes, six were drilled at El Rubi and four at Macho Libre. At El Rubi area, a broad zone of mineralization was encountered in hole LV20-245#1 with 0.76 g/t Au and 38 g/t Ag over a true width (TW) of 55.2m, including 1.79 g/t Au and 92 g/t Ag over a TW of 3m; and 2.49 g/t Au and 152 g/t Ag over a TW of 1m; and 7.98 g/t Au and 353 g/t Ag over a TW of 2.5m, including 20.7 g/t Au and 854 g/t Ag over a TW of 0.5m; hole LV20-245#2 with 0.6 g/t Au and 14 g/t Ag over a TW of 11.2m, including 1.43 g/t Au and 4 g/t Ag over a TW of 1.5m; and hole LV20-245#3 with 0.56 g/t Au and 22 g/t Ag over a TW of 7.5m, including 3.26 g/t Au and 19 g/t Ag over a TW of 0.5m, and an interval of 0.93 g/t Au and 124 g/t Ag over a TW of 0.2m. At Macho Libre, the most significant drill intercept was encountered at hole LV20-240M with 0.5 g(t Au and 7 g(t Ag over a TW of 0.6m.
  • Tarachi Gold Corp., announced the beginning of a 5,000m drilling program at its Tarachi Gold project in Sonora. The company plans to start the drill program at La Dura mine where channel sampling returned 6.34 g/t Au over 62.55m.
  • Vizsla Resources Corp., released the first step-out drill results along the Napoleon Vein corridor at its Panuco project in Sinaloa. Hole NP-20-18, located 1km north from the original discovery at Napoleon encountered 3.76 g/t Au, 689 g/t Ag, 0.2% Pb, 0.6% Zn (1,019 g/t AgEq) over a width of 2.5m, including 7.96 g/t Au, 1,515 g/t Ag, 0.5% Pb, and 1.2% Zn (2,206 g/t AgEq) over a width of 1m. Assays are pending for holes NP-20-19 and NP-20-21 separated each other for a distance of 90m.
  • Mithril Resources Ltd, announced results from the two first drill holes collared at its Copalquin project in Durango. Hole CDH-001 encountered 34.72 g/t Au and 3,129 g/t Ag over 3m, including 88.4 g/t Au and 6,750 g/t Ag over 1m; and hole CDH-002 with 5.64 g/t Au and 325 g/t Ag over 4.55m, including 9.82 g/t Au and 574 g/t Ag over 1.5m, plus 9.27 g/t Au and 825 g/t Ag over 0.5m. The two first holes are part of a 5,000m (35 holes) drilling program and intercepted the Soledad vein, confirming historically bonanza grades.

ON MINING

  • Impact Silver Corp., reported Q2, 2020 production and financial results from its Zacualpan mining district, State of Mexico. Despite losing nearly half the quarter (April to June) due to mandatory shutdown, Impact milled 25,602 tonnes with an average mill feed grade of Ag of 187 g/t to produced 129,570 Oz Ag. Q2, 2020 production at the Guadalupe mill came from the Guadalupe mine (37%), the San Ramon mine (23%), the Cuchara mine (23%), and the Veta Negra mine (17%). Impact reported revenues for $2.84M and an adjusted EBIDTA of $0.48M. At June 30, 2020, cash position was at $6.3M with working capital at $5.3M.
  • Santacruz Silver Mining Ltd., reported the filing of a NI43-101 technical report for its Zimapan mine in Hidalgo. Zimapan consists of 34 mining concessions totalling 5,138.76 ha and has had an extensive mining history dating back to the 1660´s. There are fourteen known mineral zones that are hosted in Lower Cretaceous limestone and calcareous shales. The zones contain targets that range from 3-10 m in width that have been traced 40-1000 m along strike and 40-590 m down dip. The property has been in production since January 1, 2010 and as of December 31, 2019 Carrizal Mining mined approximately 5.88M tonnes of mineralized material, including 3.43M tonnes at head grades ranging from 73-101 g/t Ag, 0.4-0.5% Pb, 1.8-2.8% Zn, and 0.49-0.67 % Cu from the Monte mine, and  45 MT at head grades ranging from 82-124 g/t Ag, 0.6-1.2 % Pb, 2.-4.4 % Zn, and 0.28-0.48 % Cu from the Carrizal mine.

ON FINANCING

  • Redstar Gold Corp., completed a non-brokered private placement for gross proceeds of CAD $7M. The company plans to use the net proceeds for exploration drilling and resource delineation, updating the resource and general working capital (Heliodor properties, Mexico).
  • Kootenay Silver Inc., closed its previously announced private placement for gross proceeds of $7M. The Company intends to use the net proceeds from the offering for exploration and development activities, working capital requirements and other general corporate purposes (Columba project, Chihuahua).
  • Capitan Mining Inc., closed its private placement for gross proceeds of $3,840,885.00 instead of the 10,000,000 shares ($2,000,000) originally contemplated. Net proceeds will be used to fund a focused drill program at the Peñoles project in Durango, additional project acquisitions and general corporate purposes.
  • VVC Exploration Corporation, announced a non-brokered private placement to raise gross proceeds of up to CAD $3.3M. Gross proceeds will be used for development of its Kaity project, Chihuahua, including costs associated with various permits, metallurgical bench testing, and investigation, evaluation and implementation of the Gloria pilot mining; option payments in Mexico; current accounts payable; general administrative expenses; and working capital.
  • Gold Resource Corporation, declared its August monthly dividend to shareholders. It will consists of one-third of a cent per common share for August 2020 payable on September 23, 2020 to shareholders of record as of September 11, 2020. (Arista mine, Oaxaca).

ON RESOURCES AND DEVELOPMENT

  • Mexus Gold US, provided an update on progress at its Santa Elena mine in Sonora. The company improved the crushing circuit to maximize efficiencies, hired two new equipment operators and a lab technician, and acquired a 330 excavator a 40 ton haul truck and repaired existing equipment. The company expects to show an increase in production during the Q2 of its fiscal year (July through September).
  • Silver Dollar Resources Inc., reported phase 3 drilling results not previously reported by SilverCrest from its la Joya project in Durango. This in-fill drilling program consisted of 17 drill holes targeted to advance towards an updated resource model in H1, 2015. Significant drill intercepts were encountered in hole LJDD14-109 with 0.73 g/t Au, 33 g/t Ag and 0.36% Cu (119 g/t AgEq) over a width of 21.92m, including 3.45 g/t Au, 12 g/t Ag and 0.1% Cu (231 g/t AgEq) over a width of 4.4m; LJDD14-114 with 0.09 g/t Au, 193 g/t Ag and 2.58% Cu (501 g/t AgEq) over a width of 1.2m and 0.38 g/t Au, 43 g/t Ag, and 0.27% Cu (98 g/t AgEq) over a width of 66.4m. including 1.26 g/t Au, 219 g/t Ag, and 1.48% Cu (468 g/t AgEq) over a width of 3.15m; hole LJDD20-115 with 0.06 g/t Au, 234 g/t Ag, and 1.24% Cu (382 g/t AgEq) over a width of 6.1m, including 0.17 g/t Au, 734 g/t Ag, and 3.75% Cu (1,182 g/t AgEq) over a width of 1m; hole LJDD20-116 with 0.06 g/t Au, 76 g/t Ag, and 0.55% Cu (144 g/t AgEq) over a width of 25.1m, including 0.04 g/t Au, 185 g/t Ag, and 1.37% Cu (348 g/t AgEq) over a width of 9.1m, and 0.11 g/t Au, 602 g/t Ag, and 4.64% Cu (1,151 g/t AgEq) over a width of 1.8m, and 0.29 g/t Au, 106 g/t Ag, and 1.2% Cu (234 g/t AgEq) over a width of 23.1m, including 0.09 g/t Au, 723 g/t Ag, and 8.97% Cu (1,778 g/t AgEq) over a width of 2m.
  • GoGold Resources Inc., announced the filing of a NI43-101 technical report on the initial mineral resource estimate for their Los Ricos South project in Jalisco. Measured and indicated mineral resource are 10M tonnes of 199 g/t AgEq to contain 63.7M Oz AgEq, and Inferred resources are 3.3M tonnes of 190 g/t AgEq to contain 19.9M Oz AgEq. Los Ricos South mineral resource is potentially amenable to both open pit and bulk underground mining methods. The company also expanded the surface rights agreement. On August 9,2020 the Ejido Cinco Minas, which owns the surface rights over the majority of the Los Ricos South concessions including all of those within the mineral resource estimate, signed an agreement with the company for a period of 12 years with an additional 12 year renewal period.
  • Santacruz Silver Mining Ltd., reported the filing of a NI43-101 technical report for its Zimapan mine in Hidalgo. Zimapan consists of 34 mining concessions totalling 5,138.76 ha and has had an extensive mining history dating back to the 1660´s. There are fourteen known mineral zones that are hosted in Lower Cretaceous limestone and calcareous shales. The zones contain targets that range from 3-10 m in width that have been traced 40-1000 m along strike and 40-590 m down dip. The property has been in production since January 1, 2010 and as of December 31, 2019 Carrizal Mining mined approximately 5.88M tonnes of mineralized material, including 3.43M tonnes at head grades ranging from 73-101 g/t Ag, 0.4-0.5% Pb, 1.8-2.8% Zn, and 0.49-0.67 % Cu from the Monte mine, and  45 MT at head grades ranging from 82-124 g/t Ag, 0.6-1.2 % Pb, 2.-4.4 % Zn, and 0.28-0.48 % Cu from the Carrizal mine.
  • Golden Minerals Company, released results from its resource definition drill program at its Rodeo project in Durango. Golden reported results from 11 drill holes with significant intercepts showing wide zones of high-grade near-surface Au mineralization. Highlights include hole RDO_20_012 with 6.66 g/t Au and 14 g/t Ag over 24.5m, including 9.3 g/t Au and 15 g/t Ag over 8.6m; hole RDO_20_014 with 5.87 g/t Au and 27 g/t Ag over 23.5m, including 8.83 g/t Au and 38 g/t Ag over 12.9m; and hole RDO_20_017 with 2.85 g/t Au and 11 g/t Ag over 21.4m, including 5.1 g/t Au and 15 g/t Ag over 6m.

ON DEALS AND CORPORATE ISSUES

  • Redstar Gold Corp., announced the acquisition of Heliodor Metals Limited., and appointed its new CEO and board of directors. To acquire Heliodor, Redstar issued an aggregate of 86,621,003 shares to the former Heliodor shareholders in exchange for all the issued and outstanding Heliodor securities.
  • Orla Mining Ltd., announced the appointment of its Senior VP Exploration (Camino Rojo project, Zacatecas).
  • Sonoro Metals Corp., announced that its board of directors approved the change of the company´s name to Sonoro Gold Corp (Cerro Caliche project, Sonora).
  • Azure Minerals Limited, presented results from its annual general meeting of shareholders (Mesa de Plata project, Sonora).
  • Newmont Corporation, announced the replacement of the General Manager of the Peñasquito mine, Zacatecas. The former General Manager was ceased for violations of Newmont´s Code of Conduct.
  • Silver Spruce Resources Inc., granted 300K stock options to its CFO (El Mezquite project, Sonora).
  • SilverCrest Metals Inc., announced the acquisition of El Picacho property, near its Las Chispas project in Sonora, from American Metal Mining. The purchase price paid by SilverCrest was for the amount of USD $1.6M and is for a 100% ownership in 11 mining concessions totalling approximately 7,060 hectares. The company also paid all the mining taxes to bring these concessions to good standing. The Property was a historic gold and silver producer, with the first noted production in late 1800s with grades greater than 15 g/t Au. “There are seven (7) low-sulphidation epithermal main veins on the concessions, with numerous near parallel hanging and footwall veins. The main veins have a known cumulative strike length of over 10km with widths ranging from 0.5 to 15m”.
  • Orogen Royalties Inc., (former Evrim) optioned the Sarape Au property in Sonora to Minera Hochschild SA de CV, a subsidiary of Hochschild Mining PLCHochschild can earn a 100% interest in the Sarape project by making cash payments of USD $5.35M and completing expenditures of USD$5M over a five-year period. Upon exercise of the option, Hochschild will grant to Orogen a 3% NSR of which 1% can be purchased for USD $2M.
  • Comet Resources Ltd., executed a share purchase and JV agreement with El Alamo Resources Limited to acquire 100% interest in the Santa Teresa project in Baja California. The acquisition will be completed on a staged basis, with Comet acquiring an initial 50% interest by making a refundable $100K cash payment. The remaining 50% interest will be acquired upon a decision to mine being made in respect of the Project within a two year period. Comet is now 50% owner of the Santa Teresa property and has the option to increase its ownership to 100% within two years. Historical production in the surrounding El Alamo district has been estimated in between 100K-200K Oz Au. The Santa Teresa project is comprised of two mineral claims totalling 202 hectares. Previous operator drilled 32 holes with significant results such as 32.4 g/t Au over 2m ; 958.4 g/t Au over 1m; 38 g/t Au over 2.5m; 39 g/t Au over 3.9m; 19.9 g/t Au over 3m; 125.9 g/t Au over 1m; 14.4 g/t Au over 3.1m; and 16 g/t Au over 3.1m. The company plans are to re-assay historic drill core to prepare a JORC compliant mineral resource estimate and then to test the upside potential at under explored areas.

ON SOCIAL RESPONSIBILITY

  • Fresnillo plc, seeks to promote knowledge about COVID-19 among its employees and train them to carry out all the actions and measures necessary to prevent the spread of the virus in their homes, community and in the company.

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 hydrothermal breccia related to an epithermal system in a prospect in Chihuahua, Mexico.  Photo by Miguel A Heredia.

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

By Jorge Cirett

During the 34th week of the year (August 17th to August 23rd, 2020), at least 36 press releases were announced by companies working in Mexico. To note, twelve of those were either opening or closing rounds of financing, several presenting oversubscriptions. Even with the difficulties to assign the total amount to any given week, the announcements on this period add up to $38.3 M and C$90.5 M, standing out Chesapeake’s $20 M and Americas Silver C$35 M. ON MEXICO ISSUES, the Guanajuato Mining Cluster is being consolidated; The MIA on Camino Rojo in Zacatecas has been approved; A new Mining Museum opens in Zimapan, Hidalgo; Francisco Quiroga, Mining Undersecretary stressed community acceptance is vital for mining companies; Minera Peñasquito and the Cedros Ejido have signed a new agreement; Foreign investment decreased during the first half of 2020; Neida Patricia Madrid, is the first large shovel female operator in Mexico; The Mexican mining industry lost 4 billion dollars in two months. ON EXPLORATION, in Sonora, Tarachi Gold released assay results from trenching at its Tarachi project. In Zacatecas, VanGold Mining accessed the #6 level on the Pinguico mine. Advance Gold is extending the IP survey at Tabasqueña. ON MINING, Odyssey Exploration continues to seek a favorable resolution on the litigation to obtain the development permit for its offshore Exploraciones Oceanica project in Baja California Sur. Americas Silver informed the illegal blockade at its Cosalá complex in Sinaloa was lifted, and the process for new union elections is coming. Mexus Gold is acquiring more heavy equipment for its Santa Elena mine in Sonora. Premier Gold informed of positive cash flow under its new reduced production plan at Mercedes, in Sonora. ON FINANCING, twelve companies made announcements regarding the opening or closing of financing rounds: Golden Tag ($7 M), VanGold Mining ($3.97 M), Southern Silver Exploration (C$14 M), Sable Resources (C$9 M), Tarachi Gold (C$9.49 M), Minera Alamos (C$13 M), Defiance Silver (C$7 M), Americas Silver (C$35 M), Chesapeake Gold ($20 M), Orex Minerals ($5.5 M), Monarca Minerals (C$3 M), Silver Spruce ($1.8 M). ON RESOURCES AND DEVELOPMENT, Azure Minerals has sent samples for metallurgical studies from the Mesa de Plata deposit at its El Alacrán project in Sonora. Prime Mining released trench results from Los Reyes, in Sinaloa. Discovery Metals released drilling results from high-grade veins from its Cordero deposit in Chihuahua. Aura Minerals updated on exploration efforts at its Aranzazu project in Zacatecas. GoGold Resources released results from six more holes at Los Ricos North, in Jalisco. ON DEALS AND CORPORATE ISSUES, Southern Silver entered into a definitive agreement with Electrum Global Holdings to acquire Electrum’s interest in the Cerro Las Minitas project in Durango. Evrim Resources and Renaissance Gold completed its merger and name change to Orogen Royalties. Sun River Gold has increased its ownership in an additional 5% NPI of the mine tailings project at El Oro, Estado de Mexico. VanGold Mining signed an agreement to re-purchase the underlying royalties on its El Pinguico project in Guanajuato. Zanzibar Gold appointed Sergio Trelles as special advisor to the board. Megastar Development amended the option agreement to extend the dates for expenditures at the Rama de Oro, Yautepec and Magdalena projects in Oaxaca. ON SOCIAL RESPONSIBILITY. Grupo Mexico, Fresnillo PLC, Peñoles, Minera Media Luna and Minera Fresnillo informed on donations and community involvement measures on the areas near their operations.

ON MEXICO ISSUES

  • The Guanajuato Mining Cluster is being consolidated. The move seeks to develop local industries as service providers for the mining industry.
  • SEMARNAT (the Mexican environmental agency) approved the Environmental Impact Report (MIA) of Orla Mining to develop the Camino Rojo Oxide project in Zacatecas.
  • The Mining Museum has been inaugurated in Zimapan, Hidalgo.
  • Francisco Quiroga, sub secretary of Mining, in the Camimex organized “Mining in the New Normality” forum, stressed that the main challenge for mining companies is to work on its acceptance by communities.
  • Minera Newmont announced the signing of the agreement between the company and the Cedros Ejido in Peñasquito, Zacatecas. To work free of illegal blockades, the company is to solve the damage to the El Socavon spring, build infrastructure to promote physical activities, develop a social area, build a civic plaza and revise the temporal occupation agreements of the mining unit at Cedros. To reach this accord 60 workshops were held with the mediation of the governor Alejandro Tello, Francisco Quiroga (Mining sub secretary) and the Secretary of the Interior Olga Sanchez.
  • The foreign direct investment in Mexico decreased during the first half of 2020 in sectors like mining, electricity and tourism. The economic crisis has coupled with changes in the regulation of the electricity generation market and the cancellation of already permitted developments like the investment by Constellation Brands and its Brewery in Baja California, to reduce the attraction to invest in the country.
  • First woman to be operator of a mechanical shovel in Mexico, Neida Patricia Madrid, Minera Buenavista del Cobre employee is the first woman to operate this 22 m high, 12 m wide machine used to load ore into off-road dump trucks. Born in Cananea, Sonora, Neida Patricia was selected for training after working for several years as dump truck operator.
  • The Mexican mining industry lost 4 billion dollars in two months, according to Francisco Quiroga, Mining Sub-secretary. Even so, he pointed that the industry has benefited of a 17% depreciation of the Mexican peso, and the rise on the price of metals, like silver in 58%, gold in 28%, and copper in 41%. Silver production was expected to reach 324 M Oz, but after the Coronavirus emergency lockdown, the outlook has been reduced to 270 million ounces, although with a much better price.  

ON EXPLORATION

  • VanGold Mining Corp. informed the continuation of its summer program at El Pinguico project in Zacatecas. Rehabilitation work has now safely accessed the #6 level, which is believed to have been inaccessible since 1913. Work is underway to access also the #5 and #7 levels. Sampling of the bottom of the backfill on the #7 level is expected to be possible.
  • Advance Gold Corp. informed four additional lines of induced polarization are being surveyed to increase detail on an anomaly at its Tabasqueña project in Zacatecas. Drilling continues, with samples to be sent to the lab once the current hole being drilled is completed.
  • Tarachi Gold Corp. released high-grade results from channel sampling at La Dura historic underground mine on the Jabalí concession pf the Tarachi project in Sonora. Rock-saw samples returned 62.55 m @ 6.34 gpt Au (including 2.0 m @ 42.65 gpt Au); 9.4 m @ 0.63 gpt Au; 4.35 m @ 4.42 gpt Au; 6.25 m @ 1.13 gpt Au.   

ON MINING

  • Odyssey Marine Exploration Inc. reported results for the second quarter 2020. During the period, the focus has been seeking the advance of its offshore “Exploraciones Oceanicas” phosphate project in Baja California Sur. “Odyssey’s legal teams are working two separate, but concurrent processes, while Odyssey continues to work through diplomatic channels in attempts to reach a mutually beneficial agreement with Mexico .…… While we are hopeful an agreement will be reached, we must continue to pursue our North American Free Trade Agreement (NAFTA) claim against Mexico to protect our shareholders’ rights”.
  • Americas Gold and Silver Corp. reported consolidated financial and operational results for the second quarter of 2020. The illegal blockade that had been in place at the Cosalá operations in Sinaloa since the end of January 2020 “has been resolved favourably without negotiation or compromise with those responsible for the illegal action…. The Company has worked with government authorities to secure a democratic election to ratify a legitimate union to represent its workers which is now set for September 9, 2020”. The company finished the earn-in agreement for the San Felipe project (Sonora) with Hochschild, by providing notice and agreeing to pay the remaining $3.75 M plus VAT in common shares.
  • Mexus Gold US. Informs on the acquisition of more mining equipment for its Santa Elena mine in Sonora, The company aims to increase its mine output to 500 tonnes per day to the leach pad.
  • Premier Gold Mines Ltd. Informed the Mercedes mine in Sonora is generating positive cash flow under its revised production plan. “Following a two-month suspension of operations due to the COVID-19 pandemic, mine operations resumed under a new simplified production plan developed by the Mercedes team….. Ongoing exploration at Mercedes has returned positive results and is prioritized on extending mine life through the growth of reserves in proximity to existing mine workings and the delineation of future resources at the San Martin and Marianas zones. Results to-date have been positive”.

ON FINANCING

  • Golden Tag Resources Ltd. closed its non-brokered private placement for total gross proceeds of $7.0 M. Eric Sprott participated with the acquisition of 10.7 M shares. A commission fee of C$345.7 K was paid to Red Cloud Securities Inc., PI Financial Corp., PowerOne Capital Markets Limited, Canaccord Genuity Corp. y Haywood Securities Inc. (San Diego-Velardeña, Durango).
  • VanGold Mining Ltd. closed the final second tranche of its non-brokered private placement for gross proceeds of $278.6 K, adding up to total gross proceeds of $3.97 M (El Pinguico, Zacatecas).
  • Southern Silver Exploration Corp. has closed a brokered placement for C$10 M and a non-brokered placement for gross proceeds of C$4 M. The company paid fees to agents of $312 K, 1.56 M compensation options, a corporate finance fee of $237.9 K and 1.19 M corporate finance options.
  • Sable Resources Ltd. increased the size of its private placement to up to C$9 M (Margarita and Vinata, Chihuahua).
  • Tarachi Gold Corp. closed its non-brokered private placement, which was oversubscribed, for gross proceeds of CAD$9.49 M (Tarachi Gold, Sonora).
  • Minera Alamos Inc. entered into an agreement with National Bank Financial Inc. on a bought deal private placement for gross proceeds of approximately C$10 M. Later on the week Minera Alamos produced another press release where the private placement was increased to C$13 M (Santana, Sonora).
  • Defiance Silver Corp. entered into an agreement with Red Cloud Securities Inc. for a private placement to raise up to C$7 M (San Acacio, Zacatecas).  
  • Americas Silver and Gold Corp. announced it is increasing the size of its previously announced offering from C$25 M to C$35 M in gross proceeds (Cosalá, Sinaloa).
  • Chesapeake Gold Corp. closed its previously announced non-brokered private placement for gross proceeds of $20 M. Eric Sprott acquired $12.5 M in shares, same that coupled with prior shares in his possession amount to 15.5% of the issued and outstanding shares of Chesapeake.  “The net proceeds from the Private Placement will be used to undertake Metates metallurgical test work and ongoing regional exploration and for general working capital” (Metates, Durango).
  • Orex Minerals Inc. closed its previously announced non-brokered private placement to Eric Sprott, for gross proceeds of $5.5 M. The investment by Eric Sprott represents 19.6% ownership in non-diluted basis, and 26.8% on partially diluted basis (Sandra, Durango).
  • Monarca Minerals Inc. announced the closing of the previously announced non-brokered private placement, for gross proceeds of C$3 M. Aggregate fees of C$212 K were paid, and 4.24 M of finders warrants issued (Tejamen, Durango).
  •  Silver Spruce Resources Inc. increased and closed its previously announced private placement, for gross proceeds of $1.8 M. Finders fees of $138.3 K and 165 K broker warrants were paid (Mezquite, Sonora).

ON RESOURCES AND DEVELOPMENT

  • Azure Minerals Ltd. has sent samples from its Mesa de Plata deposit at its Alacrán project (Sonora) for advanced metallurgic testwork. Previous metallurgic studies highlighted the presence of romeite, a silver-rich mineral that neither floats nor leaches, and subsequent studies point to that mineral being amenable to recovery by gravity separation methods. Three reverse circulation holes were drilled specifically to collect high-grade samples containing silver-rich romeite, which intercepted 10.5 m @ 805 gpt Ag (including 6 m @ 1,284 gpt Ag); 15.0 m @ 677 gpt Ag (including 3.0 m @ 1,832 gpt Ag); 10.5 m @ 774 gpt Ag. “If processing by a combination of gravity separation, flotation and leaching is successful, the Company is aiming for total silver recoveries of ~90%”.
  • Prime Mining Corp. reported results of ongoing surface sampling on the Los Reyes project, Sinaloa. One trench returned 42.0 m  (18.0 m estimated true width, or TW) @ 1.93 gpt Au, 26 gpt Ag, including 4.0 m TW @ 7.46 gpt Au, 98 gpt Ag; Other trenches returned: 16.5 m @ 1.28 gpt Au, 103 gpt Ag; 16.5 m @ 0.89 gpt Au, 14 gpt Ag; 42.0 m @ 0.85 gpt Au, 20 gpt Ag; 52.5 m @ 0.9 gpt Au, 13 gpt Ag; 33.0 m @ 1.0 gpt Au, 20 gpt Ag; 10.5 m @ 2.01 gpt Au, 7 gpt Ag.
  • Discovery Metals Corp. released results from four diamond drill holes targeting “extensive” veins at its Cordero project in Chihuahua. These holes are part of a 55,000 m program that commenced on September 2019, of which 22,600 m have been completed in 62 holes. Highlighted intercepts comprise: 4.7 m @ 635 gpt Ag, 0.15 gpt Au, 12.3% Pb, 5.3% Zn (including 1.9 m @ 1,035 gpt Ag, 0.06 gpt Au, 20.0% Pb, 6.4% Zn); 5.6 m @ 135 gpt Ag, 0.18 gpt Au, 2.7% Pb, 1.6% Zn); 1.3 m @ 587 gpt Ag, 0.67 gpt Au, 9.4% Pb, 2.4% Zn; 2.0 m @ 846 gpt Ag, 0.33 gpt Au, 2.6% Pb, 0.1% Zn; 0.7 m @ 433 gpt Ag, 0.12 gpt Au, 1.4% Pb, 7.1% Zn. Four rigs are currently operating at the site.
  • Aura Minerals Inc. provided an update of exploration at its Aranzazu mine in Zacatecas. “The deposit at Aranzazu consists of a tertiary age Gold-Copper-Silver skarn type mineralization subdivided in three main zones, Mexicana, Glory Hole and Cabrestante, striking 1.2 kilometers along a structure….”. During 2020 the company intends to perform infill drilling in the Glory Hole zone, an extension drill program at the Glory hole and Cabestrante zones and important exploration effort mainly in El Cobre skarn target 3 km NW form the Aranzazu mine. Highlighted TW drill intercept results comprise: 11.37 m @ 0.90 gpt Au, 0.88% Cu, 14 gpt Ag; 43.02 m @ 3.68 gpt Au, 6.46% Cu, 95 gpt Ag; 24.01 m @ 4.88 gpt Au, 8.6% Cu, 127 gpt Ag; 26.79 m @ 1.20 gpt Au, 2.09% Cu, 22 gpt Ag; 10.72 m @ 1.78 gpt Au, 1.12% Cu, 16 gpt Ag, 6.0 m @ 0.93 gpt Au, 1.70% Cu, 17 gpt Ag; 2.0 m @ 2.21 gpt Au, 2.94% Cu, 36 gpt Ag.
  • GoGold Resources Inc. released assay results from six more drill holes at La Trini deposit on its Los Ricos North project in Jalisco. Highlighted core-length intercepts comprise: 29.4 m @ 1.77 gpt Au, 122 gpt Ag (including 8.8 m @ 5.11 gpt Au, 286 gpt Ag); 28.4 m @ 1.07 gpt Au, 103 gpt Ag; 20.7 m @ 0.16 gpt Au, 58 gpt Ag; 25.2 m @ 0.25 gpt Au, 94 gpt Ag; 19.0 m @ 0.1 gpt Au, 31 gpt Ag; 32.2 m @ 0.62 gpt Au, 79 gpt Ag; 15.7 m @ 0.38 gpt Au, 85 gpt Ag.

ON DEALS AND CORPORATE ISSUES

  • Southern Silver Exploration Corp. has entered into a definitive agreement with Electrum Global Holdings L.P. to acquire Electrum’s 60% interest in the Cerro Las Minitas project in Durango for current and future payments totaling US$15 M. On the closing of the date of the transaction the company has to pay US$5 M and issue US$2 M in shares.  
  • Evrim Resources Corp. and Renaissance Gold Inc. announced the completion of its merger, and the concurrent name change to Orogen Royalties Inc. “Underpinning Orogen’s strategic royalty focus are two organically created cornerstone assets: (i) a 2% net smelter return royalty (“NSR”) on the Ermitaño West gold-silver deposit in Sonora, Mexico, where production by First Majestic Silver Corp. is slated to begin in 2021(1); and (ii) a 1% NSR on the Silicon gold project in Nevada, U.S.A., which is being advanced by AngloGold Ashanti S.A.”.
  • Candente Gold Corp. announced that Sun River Gold has made the final payment of US$111 K to increase their ownership in an additional 5% NPI (Net Profit Interest) of the Mine Tailings at El Oro, Estado de México. “Sun River has the option to acquire 100% of the Tailings Project by making staged payments totalling US$300,000 (paid), bring the tailings into commercial production by October 31, 2021, and grant to the Company a 10% NPI, Life of Mine royalty (the “Candente Royalty”) as well as the Municipality’s 8% NPI on production from the properties. Sun River had the right to reduce the NPI payable to the Company to 5% by paying an additional US$200,000 in payments (now paid)”.
  • VanGold Mining Corp. signed an option agreement to re-purchase three underlying royalties on its El Pinguico project in Guanajuato. The company will pay C$1.68 M (C$5 K paid) and issue 3.75 M units of VanGold to Exploraciones Mineras del Bajio, S.A. de C.V.. The royalties to be scraped are: 1) a 4% NSR on all broken material, 2) a 3% NSR on all in-situ newly discovered material and 3) a 5% NPI on all in-situ newly discovered material. “Upon exercise of the Option, VanGold’s Mexican subsidiary, Obras Mineras El Pinguico, S.A de C.V., will own its undivided 100% interest in the El Pinguico silver and gold project free from royalties, save for a 15% net profits royalty in favour of EMBSA solely on the existing above ground and underground stockpiles of mineralized material. There will be no other royalties, net smelter returns or otherwise, on the El Pinguico project including the existing stockpiled material”.
  • Zanzibar Gold Inc. announced the appointment of geologist Sergio A. Trelles Monge as a special advisor to the board of the company. “Mr. Trelles was the Director General of Mining Promotion of the State of Sonora, Assistant Director of Mining Resources of Mexico’s Geological Survey. He was also President of the Association of Mining Engineers, Metallurgists and Geologists of Mexico, Civil Association [Asociación de Ingenieros de Minas, Metalurgistas, y Geólogos de México A.C]. and Chairman of the College of Mining Engineers, Metallurgists and Geologists of Mexico, Civil Association [Colegio de Ingenieros de Minas, Metalurgistas y Geólogos de México A.C].”.
  • Megastar Development Corp. has amended the option agreements to acquire 100% interest in the Rama de Oro, Magdalena and Yautepec projects in Oaxaca, by extending the due dates for the exploration expenditures on each project. “The Rama de Oro expenditure commitment of US $350,000 was extended from May 9, 2020 to May 9, 2022 and the Magdalena and Yautepec expenditure commitments, in the aggregate amount of US $310,000, were extended from June 1, 2021 to December 1, 2021. In consideration of the extension, the Company has agreed to pay an aggregate US $12,500 to the vendor, who is a director of the Company”.  

ON SOCIAL RESPONSIBILITY

  • Grupo Mexico donated eight thousand tree seedlings to the Salamanca Municipality in Guanajuato.
  • Fresnillo PLC, through Minera Penmont and Innovec, has been sponsoring online workshops for kids in 22 communities of Caborca, Sonora.
  • Minera Penmont distributed 4,000 washable face masks in 22 communities of the Caborca municipality, and expects to deliver another 6,000 before the end of the week.
  • Peñoles has more than 1,500 local service providers in the La Laguna region (Torreón-Gómez Palacio-Lerdo). The company has 3,500 workers and generates another 2,000 full time jobs. No one was fired during the pandemic emergency, while 450 vulnerable employees were been sent home with full pay and are now in the process of returning to work following government directives.
  • Minera Media Luna built an artificial swamp for treatment of residual waters in Cocula, Guerrero.
  • Minera Fresnillo and Concretos Lanzados de Los Mochis donate meals for community dinner rooms in 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 image below: Artisanal kaolin mine above a low sulfidation epithermal system in Guanajuato. Picture by Jorge Cirett.

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

197 - copiaBy Jorge Cirett

During the 32nd week of the year (August 3rd to August 9th, 2020), at least 29 press releases were announced by companies working in Mexico. To note, six of those were either opening or closing rounds of financing, and although it is difficult to assign the total amount to any given week, the announcements on this period add up to $25.56 M and C$31.9 M (dominated by Chesapeake’s $20 M and Excellon’s C$17.9 M). ON MEXICO ISSUES, First Majestic has been sued by the Tax revenue agency (SAT). The mining and metallurgical production increased 9.6% on the previous month. Alberto López Santoyo ended its functions heading the Dirección General de Minas del Estado de Sonora. ON EXPLORATION, in Sonora, Colibri Resource updated on exploration at the Evelyn property in Sonora; Canuc Resources acquired a new claim at its San Javier project. In Sinaloa, Viszla Resources released drilling results from three more holes from its Panuco project. ON MINING, Endeavour Silver, Premier Gold, Torex Gold, Great Panther and Golden Minerals presented its financial or production reports for the Q2 2020. Mexus Gold is adding equipment to its Santa Elena mine in Sonora. ON FINANCING, six companies made announcements regarding the opening or closing of financing rounds, or financing related news: Canasil Resources ($1.56 M), Excellon Resources (C$17.9 M), Chesapeake Gold ($20 M), Impact Silver (C$7 M), Redstar Gold (C$7 M), Barksdale Resources ($4 M). ON RESOURCES AND DEVELOPMENT, Pan American Silver released a new resource estimate for its La Colorada skarn deposit in Zacatecas. Sailfish Royalty updated on the Gavilanes property in Durango. GoGold released more drilling results from its Los Ricos North project in Jalisco. ON DEALS AND CORPORATE ISSUES, Minera Alamos finalized the acquisition of the Cerro de Oro project in Zacatecas. Zanzibar Gold acquired the Sonora Gold property in Sonora. Inomin Mines executed the agreement to acquire the La Gitana project in Oaxaca. Barksdale Resources signed a LOI on the San Javier copper project in Sonora. Riverside Resources released the date of the incoming spin-out of El Capitan Mining. ON SOCIAL RESPONSIBILITY. Minera Saucito was certified on safety, work and health. Newmont Peñasquito, Fresnillo PLC and Torex Gold informed on health and community help activities in Zacatecas, Guerrero and Sonora.

ON MEXICO ISSUES

  • Primero Mining (First Majestic) was sued by the SAT (Tax Agency). The company is accused of failing to fully pay for taxes by selling metals even below market prices to related parties. Another charge relates to the 2010 acquisition of the San Dimas mine in Durango, allegedly using a lower price tag than its real value. Last May the company warned it was to file a reclamation against the Mexican government on a multinational panel.
  • The Mining and Metallurgic production in Mexico fell 16.9% in May, in an annualized basis, even if presenting a 9.6% increase on the April production.
  • Gold has had an hectic week, reaching an all-time new high of $2,069 per Oz Au, while silver peaked at $28.40. The price of gold has appreciated 35% in the year, while silver is at a seven-year high.
  • Francisco Quiroga, Mining subsecretary, informed production levels in Mexico are now back to the levels before the Coronavirus pandemic emergency that shut most operations.
  • Alberto López Santoyo finalized its function as head of the Dirección General de Minas del Estado de Sonora. He had been on the post since 2015.

ON EXPLORATION

  • Viszla Resources Corp. released drilling results from the Napoleon vein corridor at the Panuco project in Sinaloa. Highlighted core-length results comprise 27.0 m @ 47 gpt Ag, 0.65 gpt Au, 0.2% Pb, 0.8% Zn; 3.5 m @ 208 gpt Ag, 1.31 gpt Au, 0.3% Pb, 2.1% Zn; 8.5 m @ 48 gpt Ag, 0.32 gpt Au, 0.4% Pb, 1.1% Zn and 4.5 m @ 495 gpt Ag, 2.52 gpt Au, 0.5% Pb, 1.1% Zn in one hole. 22.6 m @ 141 gpt Ag, 1.05 gpt Au, 0.5% Pb, 0.8% Zn (including 1.0 m @ 619 gpt Ag, 5.54 gpt Au, 2.5% Pb, 3% Zn and 5.4 m @ 267 gpt Ag, 1.63 gpt Au, 0.4% Pb, 1% Zn) in a second hole. 3.4 m @ 41 gpt Ag, 1.39 gpt Au, 0.1% Pb, 0.4% Zn.
  • Canuc Resources Corp. acquired a 151 ha mining concession that enveloped the NE of its land holdings at San Javier, Sonora. “The Company believes that there is a distinct possibility that silver-gold bearing breccia and stockwork zones can be confirmed along this trend with current exploration initiatives“.
  • Colibri Resource Corp. updated on exploration at its Evelyn project in Sonora. Recent mapping and sampling of previously unmapped areas returned up to 27.5 gpt Au. Trenching has been recommended to establish geometry and potential length of mineralization, as well as a high resolution aeromagnetic survey.

ON MINING

  • Mexus Gold US. is adding equipment to its Santa Elena mine in Sonora (Not to mistake for First Majestic’s Santa Elena mine, also in Sonora). Assays on material from Pit #1 averaged 2.1 gpt Au, with results of up to 16 gpt Au. Mexus intends to increase the size of the heap leach pad to contain up to 500 K tonnes.
  • Endeavour Silver Corp. released its financial reports for the second quarter 2020. During the period 114.1 K tonnes were processed, producing 596.5 K Oz Ag, 5,817 Oz Au (1.06 M Oz AgEq) at cash cost $2.78, AISC $14.91. At Guanaceví in Durango, higher grade El Curso, Milache and SCS orebodies had a significant positive impact on the operating performance. At Bolañitos, Guanajuato, and El Compas, Zacatecas, re-start was slower due to smaller stockpiles and less stope preparation.
  • Premier Gold Mines Ltd. Presented 2020 Q2 results. No production was reported from its Mercedes mine in Sonora, which was closed during the pandemic emergency. The company revised its mining plan, reducing production rates from 2,000 tpd to 1,200 tpd, consolidating from five mining portals to one and operating the processing plant on a campaign basis.
  • Torex Gold Resources Inc. released financial results for Q2 2020. Production at El Limón Guajes mine in Guerrero was suspended in April and partially resumed in May with the processing of low grade stockpiles. Gold production was 59,508 Oz, including 38,892 Oz in June, at cash cost $740 and AISC of $1,015 per Oz Au.
  • Great Panther Mining Ltd. Reported financial results for the second quarter of 2020. From its Topia and Guanajuato mine Complex, 23.6 K tonnes were mined and 24.5 K tonnes milled @ 325 gpt AgEq.
  • Golden Minerals Co. announced its financial results for the last quarter. The company had a revenue of $1.2 M and a net operating margin of $0.8 M on the lease of its processing plant, and received $0.9 M from an earn-in agreement with Barrick and $2.8 M form an equity offering (Rodeo, Durango).

ON FINANCING

  • Canasil Resources Inc. closed its non-brokered private placement for total gross proceeds of $1.56 M. The placement was originally for $1 M (Nora, Durango).
  • Excellon Resources Inc. closed the previously announced private placement, raising total gross proceeds of C$17.9 M. The funds will be used to repay a US$6 M bridge loan and exploration of its projects (Platosa, Durango).
  • Chesapeake Gold Corp. arranged a non-brokered private placement for gross proceeds of $20 M (Metates, Durango).
  • Impact Silver Corp. increased the previously announced private placement, aiming to gather up to C$7 M in gross proceeds (Zacualpan, Estado de México).
  • Redstar Gold Corp. announced the commencement of a non-brokered private placement to raise aggregate gross proceeds of up to C$7 M (Cumaro, La Lola and Oso Negro in Sonora).
  • Barksdale Resources Corp. intends to complete a non-brokered private placement financing for $4 M in gross proceeds (San Javier, Sonora).

ON RESOURCES AND DEVELOPMENT

  • Pan American Silver Corp. released a new mineral resource estimate for the La Colorada skarn deposit in Zacatecas. The inferred resource stands now as 100.4 M tonnes @ 44 gpt Ag, 0.20% Cu, 1.77% Pb, 4.29% Zn, containing 141 M Oz Ag, 199 K tonnes Cu, 1.8 M tonnes Pb, 4.3 M tonnes Zn. Drilling core-length highlights include 223.5 m @ 29 gpt Ag, 0.10% Cu, 1.00% Pb, 1.79% Zn; 101.3 m @ 44 gpt Ag, 0.21% Cu, 2.89% Pb, 3.92% Zn; 52.0 m @ 67 gpt Ag, 0.34% Cu, 1.37% Pb, 3.53% Zn; 83.6 m @ 23 gpt Ag, 0.27% Cu, 0.08% Pb, 4.21% Zn; 23.1 m @ 139 gpt Ag, 0.12% Cu, 3.99% Pb, 6.46% Zn; 28.2 m @ 57 gpt Ag, 0.06% Cu, 3.79% Pb, 3.18% Zn; 20.2 m @ 156 gpt Ag, 0.88% Cu, 5.99% Pb, 5.29% Zn.
  • Sailfish Royalty Corp. updated on the Gavilanes property in Durango. The Gavilanes project covers 13,594 ha in the San Dimas district in Durango, with an historical indicated resource of 953 K tonnes @ 164.6 gpt Ag, 0.09 gpt Au, 0.06% Cu, 0.42% Pb, 0.41% Zn and inferred resources of 5.4 M tonnes @ 124.6 gpt Ag, 0.12 gpt Au, nil Cu, 0.4% Pb, 0.34% Zn, holding 6.14 M Oz AgEq and 28.3 M Oz AgEq respectively.
  • GoGold Resources Inc. released results from the three first drill holes at La Trini on the Los Ricos North project in Jalisco. Highlighted core-length intercepts comprise: 43.1 m @ 0.70 gpt Au, 91 gpt Ag (including 17.8 m @ 0.89 gpt Au, 132 gpt Ag, which includes 4.0 m @ 1.92 gpt Au, 225 gpt Ag); 42.8 m @ 0.40 gpt Au, 52 gpt Ag (including 10.5 m @ 1.23 gpt Au, 56 gpt Ag); 29.8 m @ 2.41 gpt Au, 532 gpt Ag (including (4.5 m @ 12.83 gpt Au, 3,289 gpt Ag).

ON DEALS AND CORPORATE ISSUES

  • Minera Alamos Inc. finalized definitive agreements to acquire 100% interest in the Cerro de Oro gold project in Zacatecas. This deal increases the company’s land holdings in the district to 6,500 ha. Historical exploration includes 8,200 m of drilling in 76 holes and 6,000 m of trenching, with gold mineralization defined on a 500 m by 1,000 m stretch, oxidized to 70-80 m of depth, and open in multiple directions. Highlighted core–length drilling intercepts include 92 m @ 0.45 gpt Au, 70 m @ 0.75 gpt Au, 45 m @ 0.54 gpt Au, 70 m @ 0.40 gpt Au, 38 m @ 0.66 gpt Au, 30 m @ 1.29 gpt Au, 81.7 m @ 0.44 gpt Au, 38 m @ 0.44 gpt Au. Trenching results include: 75 m @ 0.67 gpt Au, 100 m @ 0.47 gpt Au, 200 m @ 0.50 gpt Au, 131 m @ 0.61 gpt Au. The deal involves the payment of $400 K and 2 M shares on closing, $300 K and 500 K shares on the first year, $400 K and 500 K shares on the second year, $800 K and 500 K shares on the third year and $1 M and 500 K shares on the fourth year. A $1 M bonus will be paid to the vendor upon the production of 50 K Oz Au.
  • Zanzibar Gold Inc. signed an option with Minerales de Tarachi for a 100% interest in the 6,000 ha Sonora Gold concessions. “Zanzibar Gold Inc. is looking forward to commencing detailed mapping and sampling exploration program on this large and very prospective property with a view to be drilling within four to five months”. The option involves payments of $50 K and 1.5 M shares on signing, $50 K and 1.5 M shares in six months, $50 K and 2 M shares in 12 months, $50 K at 18 months, $50 K and 2 M shares at 24 months, $50 K at 30 months, $150 K and 3 M shares at 36 months, $150 K at 42 months, $200 K at 48 months, $500 K at 54 months and $2.7 M at 60 months, for a total of $4 M in cash and 10 M shares. The optionor retains a 3.0% NSR of which 1% can be bought by Zanzibar for US$1 M.
  • Inomin Mines Inc. executed the agreement to acquire La Gitana and Peña Blanca projects in Oaxaca. The deal involves the payment of $25 K and the issuance of 1 M shares of Inomin, with a 1.5% NSR to Gunpoint on Peña Blanca and an existing 3.0% NSR to a third-party. Both properties are low-sulfidation epithermal systems with veins and dissemination within broad stockworks and breccias. La Gitana has a drilled zone of 500 m by 300 m with highlighted core length intercepts: 133.5 m @ 1.78 gpt Au, 101 gpt Ag; 33.0 m @ 0.64 gpt Au, 39 gpt Ag; 124.5 m @ 0.75 gpt Au, 24 gpt Ag; 145.5 m @ 0.40 gpt Au, 33 gpt Ag; 93.0 m @ 0.99 gpt Au, 19 gpt Ag; 63 m @ 1.27 gpt Au, 70 gpt Ag; 93.0 m @ 0.56 gpt Au, 20 gpt Ag; 60.0 m @ 1.20 gpt Au, 31 gpt Ag; 72.0 m @ 0.75 gpt Au, 35 gpt Ag; 28.5 m @ 1.55 gpt Au, 84 gpt Ag. At Peña Blanca, channel sampling of outcrops and trenches returned 23.5 m @ 2.26 gpt Au, 178 gpt Ag; 46 m @ 0.61 gpt Au, 7 gpt Ag; 23 m @ 0.61 gpt Au, 11 gpt Ag; 25 m @ 0.47 gpt Au, 8 gpt Ag; 3.0 m @ 5.9 gpt Au, 16 gpt Ag.
  • Barksdale Resources Corp. signed a binding letter of intent (LOI) securing an option to acquire the San Javier copper gold project in Sonora. The 1,184 ha project has 30,000 m of historic drilling by several companies with mineralization previously characterized as of IOCG type. Bakersdale intends to follow up also on structurally controlled mineralization, especially in zones of high gold grades. Some highlighted historic drill results comprise: 191.6 m @ 0.43% Cu; 54 m @ 0.75% Cu; 69 m @ 0.57% Cu; 33 m @ 1.47% Cu; 87 m @ 0.97% Cu, 0.16 gpt Au; 15 m @ 4.34% Cu, 0.94 gpt Au; 189 m @ 0.38% Cu, 0.49 gpt Au (including 63 m @ 0.35% Cu, 1.26 gpt Au which includes 9.9 m @ 0.17% Cu, 5.23 gpt Au); 42.0 m @ 0.53 % Cu, 1.09 gpt Au. The deal involves the payment of C$50 K and 4 M shares on completion, C$100 K and 2 M shares on the first year, C$150 K and 3 M shares on the third year and $200 K and 4 M shares on the sixth year. There is also an NSR of 1% when copper is below $3.50 per pound, or 2% when the price is over $3.51 per pound.
  • Riverside Resources Inc. announced the planned spin-out of the Peñoles project (Durango) to its shareholders by way of a plan of arrangement with Capitan Mining Inc. is to occur on August 14, 2020.

ON SOCIAL RESPONSIBILITY

  • Minera Saucito obtained the ISO45001 international certification on “Sistemas de gestión de la seguridad y salud ocupacional en el trabajo” by the BSI Group.
  • Newmont Peñasquito has realized 22,952 SARSCov-2 (Covid-19) fast tests since the recommencement of operations with 50% of the personnel.
  • Fresnillo PLC has been sanitizing more than 35 public spaces for more than 100 days now in Caborca, Sonora.
  • Fresnillo PLC donated two advanced mechanical respirators in Zacatecas, one to the Hospital General de Fresnillo and one to the Hospital General de Zona No.2 del Instituto Mexicano del Seguro Social (IMSS).
  • Minera Media Luna (Torex Gold) with the community of Nuevo Balsas realized several activities to improve public spaces. More than 300 persons participated in the activities that included painting streets and sidewalks, moving 50 tonnes of garbage, repairing 80 public lights and planting 200 trees.

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

On the image below: Hematitized and silicified breccia in the paleo water table of a low sulfidation epithermal system in Queretaro. Picture by Jorge Cirett.

197 - copia

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

 

Quartz veins hosted in volcanic rocks

By Miguel A Heredia

During the thirty one week of the year (July 27th to August 2nd, 2020), at least 50 press releases were announced by companies working in Mexico, with thirteen announcing financial rounds, eight communicating production and financial results, seven disclosing deals and corporate issues, six commenting on Mexican issues, six discussing social issues, five informing on exploration results, and five reporting on resources and developments. ON MEXICO ISSUES, Xavier Garcia de Quevedo, VP of Grupo Mexico, stated that the investment in the Mexican mining industry has decreased 36% between 2018 and 2019 and 68% in the last seven years. The research firm Americas Market Intelligence (AMI) stated that sustainability initiatives will boost financing for the mining sector. The dispute between the Tax Administration Service (SAT) and the Canadian mining company First Majestic is rapidly escalating to other levels. According to the Institute of Statistics and Geography (INEGI), Mexico is the 9th world gold producer. Gold price exceeded USD $ 1,981.27 per Oz last Tuesday 28, 2020, reaching an all-time high. ON EXPLORATION, In Sonora, Canuc recommenced exploration at its San Javier project, and Silver Spruce announced that its Phase 1 ground exploration program on the El Mezquite Au Project will be activated during the first week of August 2020.  In Sinaloa, Vizsla added a fourth drill rig at its Panuco project. In Durango, Mithril commenced a 5,000m drilling program at its Copalquin project.  ON MINING, Capstone, Coeur, Consolidated Zinc, Fresnillo, Newmont, and Starcore reported production and financial results from their Mexican operations. Sierra Metals announced restart of production at its Cusi mine in Chihuahua.  ON FINANCING, Advance Gold closed its previously announced private placement for gross proceeds of $720K (Tabasquena project, in Zacatecas).  Aztec Minerals closed the final tranche of its private placement for gross proceeds of CAD $955K (Cervantes project in Sonora). Golden Tag announced a non-brokered private placement financing led by Eric Sprott for aggregate proceeds of $5.6M (San Diego property in Durango). Impact Silver pronounced a brokered private placement financing for CAD $6M (Zacualpan Mining District in Mexico State). Kootenay announced a private placement financing for $5M (Columba project in Chihuahua). Silver Tiger closed a non-brokered private placement for gross proceeds of $11M (El Tigre project in Sonora). Southern Silver reported a brokered offering of subscription receipts for aggregate gross proceeds of CAD $10M, and announced an additional CAD $4M equity raise (Cerro Las Minitas project in Durango). Stroud completed a non-brokered private placement financing for gross proceeds of $3M (Santo Domingo property in Jalisco).  Sonoro Metals announced that it increased its non-brokered private placement financing for up to $5M with the potential to add up to $3M of additional proceeds under the overallotment option. Gold Resource declared July monthly dividend to their shareholders (Arista mine in Oaxaca). Mag Silver signed an at the market offering sales agreement of common shares for gross proceed of up to USD $50M (Juanicipio project in Zacatecas). Candente applied to TSX for approval to extend the exercise period of 5M outstanding share purchase warrants issued pursuant to the private placement completed on August 12, 2016. (El Oro property in Mexico State). Monarca Minerals announced that it is proposing to settle an aggregate of approximately $380.6K owing to certain officers and directors and services providers through the issuance of an aggregate of approximately 7,612,000 common shares at an issue price of CAD $0.05 (Tejamen project in Durango).   ON RESOURCES AND DEVELOPMENT, Alamos Gold reported results of a positive internal economic study and announced construction decision on its fully permitted La Yaqui Grande project located in the Mulatos mining district. GoGold announced initial mineral resource estimate at its Los Ricos project in Jalisco, and updated the mineral reserve at the Parral Tailings operation, and the mineral resource estimate at its Esmeralda Tailings project located near Parral, Chihuahua. Consolidated Zinc advised that the environmental authority of Mexico has granted their approval for refurbishment of its Plomosas plant and construction and operation of the tailings storage facility. Ridgestone entered into a toll milling agreement to process bulk samples from historic dumps of the Alaska vein at its Rebeico project in Sonora.  ON DEALS AND CORPORATE ISSUES, Brigadier announced the appointment of its new special adviser (Picachos project in Sinaloa). Santacruz signed an option agreement with Grupo Peñoles to acquire the Zimapan property and related assets located in Zimapan, Hidalgo for a total consideration of USD $20M. Minera Alamos hired new VP project development and appointed new COO (Santana project in Sonora). Consolidated Zinc presented results from its annual general meeting of shareholders, and advised that a new constitution was approved and adopted by shareholders (Plomosas mine in Chihuahua). Candente launched the “CEO Verified” Discussion Forum on AGORACOM (El Oro property in Mexico State). Telson provided an update on filing annual 2019 audited and Q1, 2020 financial statements (Tahuehueto project in Durango).  ON SOCIAL RESPONSIBILITY, The Municipal Water and Sanitation Board of Chihuahua (JMAS) is extracting water from the Esmeralda and Arbolito mines to feed a dam in Parral Chihuahua. Minera Peñasquito supplies water to 5 thousand people of the communities of Cedros, Mesas, Charcos, Nuevo Peñasco and Palmas. Minera Saucito, a subsidiary of Fresnillo plc, received international certification for its commitment to the health and safety of its collaborators. Minera Penmont (Fresnillo plc), implemented a health model for the safety of its workers in the face of the COVID-19 pandemic (La Herradura mine in Sonora). Compañía Minera Cuzcatlán (Fortuna Silver) dissociated itself from the alleged environmental incident and reiterated its commitment to the communities in which it operates (San Jose mine, Oaxaca).

ON MEXICO ISSUES

  • Xavier Garcia de Quevedo, VP of Grupo Mexico, stated that the investment in the Mexican mining industry has decreased 36% between 2018 and 2019 and 68% in the last seven years, leading the country to fall in the international ranking of investment destination from position 5 to 29.
  • The research firm Americas Market Intelligence (AMI), concluded that sustainability initiatives will boost financing for the mining sector. This would represent an opportunity to transform the industry and create new business models in a more economic capital cycle.
  • The dispute between the Tax Administration Service (SAT) and the Canadian mining company First Majestic is rapidly escalating to other levels. The Attorney General’s Office, Carlos Romero Aranda, warned the taxpayer that it failed to accumulate the real income derived from the sale of silver to its related party Silver Trading Barbados Limited. First Majestic draws disputes with the SAT since the last administration because it is questioned what it paid as a result of the purchase of Primero Mining, owner of the San Dimas silver mine, in Durango. The mining company filed a lawsuit against Mexico in May under the Free Trade Agreement, prompting Andrés Manuel López Obrador to ask the Canadian government to enter into conciliation. But what is unheard of is that while the President asks his counterpart Justin Trudeau to sensitize First Majestic to pay about $ 180 million, there is already a tax lawsuit.
  • According to the National Institute of Statistics and Geography (INEGI), Mexico is the 9th world gold producer. In 2019 the country produced 2.4M Oz Au with a value of approximately USD $2.87B.
  • Gold price exceeded USD $ 1,981.27 per Oz last Tuesday 28, 2020, reaching an all-time high. Investors bet on the precious metal, considered as a safe value amid uncertainty by the tensions between the United States and China and the recovery of the COVID-19 pandemic. This move is common among investors to protect themselves from risk when markets fall.

ON EXPLORATION

  • Canuc Resources Corporation, recommenced exploration at its San Javier project in Sonora. The company announced that it has initiated a geological mapping and systematic sampling program along the 3Km structural corridor of the San Javier Ag-Au project. Focus of the program is to locate and evaluate large scale breccia zones, particularly those that occur at the intersection of known veins and crosscutting fault structures.
  • Silver Spruce Resources Inc., announced that its Phase 1 ground exploration program on the El Mezquite Au Project will be activated during the first week of August 2020. Silver Spruce plans to conduct geological mapping on the entire property and additional rock sampling. It also will use the Terraspec hyperspectral tool for definition of alteration intensity of silicate, carbonate and hydrous oxide species. The mapping also will document any structural data which may be correlated with the known geophysical trends, and applied to the interpretation of the property-wide mapping. In addition, the company also will initiate scheduling for the requisite environmental permitting for drilling access and pads.
  • Vizsla Resources Corp., added a fourth drill rig at its Panuco project in Sinaloa, to test new targets on the Napoleon, Cordon del Oro and Animas vein corridors.
  • Mithril Resources Limited commenced a fully funded 5,000m drilling program at its Copalquin project which is expected to run until the end of 2020. This program has already started at the high-grade Au-Ag La Soledad-Refugio-Cometa targets, and will move to other targets such as Los Pinos, Los Reyes, and San Manuel-La Constancia.

ON MINING

  • Capstone Mining Corp., reported production results from its Cozamin mine in Zacatecas for the period Q2, 2020. The company produced 8.3M Lb Cu at a cash cost of $0.98 per Lb.
  • Coeur Mining Inc., released Q2, 2020 production and financial results from its Palmarejo mine in Chihuahua. The company processed 269,641 tonnes of 2.18 g/t Au and 139 g/t Ag, with metallurgical recoveries of 86% and 72.2% respectively, to produce 15.2K Oz Au and 867K Oz Ag. Costs applicable to sales were USD $686 and $8.13 per Oz Au and Ag respectively.
  • Consolidated Zinc Ltd., mined 2,575 tonnes of 16.6% Zn, 9.5% Pb, and 66 g/t Ag and processed 2,201 tons of 16.6% Zn, 9.2% Pb, and 64 g/t Ag to produce 515.9K Lb Zn, 185.2K Lb Pb, and 30 Oz Ag, at a cash cost of $0.84 per Lb Zn. The company sold in this quarter 541 tonnes of Zn concentrate and 201 tonnes of Pb concentrate.
  • Fresnillo plc., announced production results from their Mexican operations for the period Hi, 2020. At Fresnillo mine, Zacatecas, the company processed 1,194,905 tonnes of 0.72 g/t Au, 196 g/t Ag, 1.14% Pb, and 2.12% Zn to produce 19.7K Oz Au, 6.8M Oz Ag, 25.3M Lb Pb, and 39.1M Lb Zn. At Saucito mine in Zacatecas, it processed 1,385,385 tonnes of 1.21 g/t Au, 210 g/t Ag, 1.02% Pb, and 1.84% Zn to produce 41.6K Oz Au, 8.14M Oz, 26.4M Lb Pb, and 39.12M Lb Zn. At Pyrites Plant in Zacatecas, the company processed 80,502 tonnes of 2.11 g/t Au and 252 g/t Ag to produce 1,795 Oz Au and 505K Oz Ag. At Cienega in Durango, it processed 657,893 tonnes of 1.65 g/t Au, 163 g/t Ag, 0.75% Pb, and 1.24% Zn to produce 32.4K Oz Au, 2.97M Oz Ag, 7.14M Lb Pb, and 10.8M Lb Zn. At San Julian Veins in Chihuahua-Durango border, the company processed 621,973 tonnes of 1.58 g/t Au and 115g/t Ag to produce 30.2K Oz Au and 2.1M Oz Ag while at San Julian Disseminated Ore Body, it processed 1,101,489 tonnes of 0.08 g/t Au, 137 g/t Ag, 0.39% Pb, and 1.1% Zn to produce 1,293 Oz Au, 4.15M Oz Ag, 7.5M Lb Pb, and 19.8M Lb Zn. At Herradura mine in Sonora. 8,130,282 tonnes of 0.82 g/t Au and 4 g/t Ag were processed to produce 205.7K Oz Au and 824K Oz Ag. At Noche Buena mine in Sonora, the company processed 3,330,054 tonnes of 0.54 g/t Au and 0.4 g/t Ag to produce 48.7K Oz Au and 19K Oz Ag. Consolidated results of the company were 383.3K Oz Au, 26.8M Oz Ag (including 1.3M Oz silverstream), 66.3M Lb Pb, and 108.9M Lb Zn. Total revenues of USD $ 1,054.2M, adjusted revenues of USD $1,125.1M, cost of sales of USD $733M, exploration expenses of USD $50.7M, and EBIDTA of USD $469.9M, and a profit for the period of USD $56.5M.
  • Newmont Corporation reported that 510K Oz Au, 28M Oz Ag, 190M Lb Pb, and 360M Lb Zn (880 Oz AuEq) were produced at its Peñasquito mine in Zacatecas during Q2, 2020, at cash cost and AISC of $565 and $770 per Oz Au produced respectively.
  • Starcore International Mines Ltd., released year end 2020 results from its San Martin mine in Queretaro. The company processed 229,800 tonnes of 1.82 g/t Au and 30.5 g/t Ag with metallurgical grades of 87.7% and 54.4% respectively, to produce 11.8K Oz Au and 121.8K Oz Ag (13-1K Oz AuEq) at cash and AISC of USD $66 and USD $1,149 per tonne milled respectively.
  • Sierra Metals Inc., announced restart of production at its Cusi mine in Chihuahua since it had remained in care and maintenance since April 1, 2020, due to the government-mandated shutdown to contain the advancement of COVID-19.

ON FINANCING

  • Advance Gold Corp closed its previously announced private placement for gross proceeds of $720K. Net proceed will be used for drilling its Tabasquena project in Zacatecas, as well as for general corporate purposes.
  • Aztec Minerals Corp., closed the final tranche of its private placement equity financing for gross proceeds of CAD $955K. Part of the net proceeds will be used to conduct exploration work on its Cervantes project in Sonora, and for general working capital purposes.
  • Golden Tag Resources Ltd., announced a non-brokered private placement financing led by Eric Sprott for aggregate proceeds of $5.6M. The offering is subject to an over-allotment option allowing Golden Tag to increase it to $7M, if fully exercised. Net proceeds will be used to fund advancement of its San Diego project in Durango, and for working capital and general corporate purposes.
  • Impact Silver Corp., pronounced a brokered private placement financing for CAD $6M (Zacualpan Mining District, Mexico State). Net proceeds will be used for exploration, development and general corporate purposes.
  • Kootenay Silver Inc., announced a private placement financing for gross proceeds of $5M. Net proceeds will be used for working capital requirements and other general corporate purposes (Columba and Copalito projects in Chihuahua and Sinaloa states respectively).
  • Silver Tiger Metals Inc., closed a non-brokered private placement for gross proceeds of $11M, including $4M from Eric Sprott. Net proceeds will be used to continue exploration work on its El Tigre project in Sonora, and for general working capital purposes.
  • Southern Silver Exploration Corp., reported a brokered offering of subscription receipts for aggregate gross proceeds of CAD $10M, and announced an additional CAD $4M equity raise. Net proceeds will be used to acquire an additional 60% indirect working interest (for a 100% indirect ownership) in the company’s flagship Cerro Las Minitas in Durango, and for general working capital purposes.
  • Stroud Resources Ltd., completed a non-brokered private placement financing for gross proceeds of $3M. Net proceeds will be used to advance the company´s exploration properties located in Mexico and for general working capital purposes (Santo Domingo project in Jalisco).
  • Sonoro Metals Corp., announced that it increased its non-brokered private placement financing for up to $5M with the potential to add up to $3M of additional proceeds under the overallotment option. Net proceeds will be used principally to fund company´s previously announced exploration and development plans at its Cerro Caliche project in Sonora and project property maintenance payments, and secondarily for corporate and general administrative expenses.
  • Gold Resource Corporation, declared July monthly dividend of one third of a cent per common share to their shareholders (Arista mine in Oaxaca).
  • Mag Silver Corp., signed an at the market offering sales agreement of common shares for gross proceed of up to USD $50M (Juanicipio project in Zacatecas). Net proceeds will be primarily used to fund the completion of construction at its Juanicipio project in Zacatecas, with any remainder to fund further exploration at Juanicipio and other projects, and for working capital and general corporate purposes.
  • Candente Gold Corp., applied to TSX for approval to extend the exercise period of 5M outstanding share purchase warrants issued pursuant to the private placement completed on August 2016. The amended expiry date was August 12th, 2020 and if the extension is approved, the new expiration date will be August 12th, 2021. (El Oro property in Mexico State).

ON RESOURCES AND DEVELOPMENT

  • Alamos Gold Inc., reported results of the positive internal economic study completed on its fully permitted La Yaqui Grande project located in the Mulatos mining district and announced that it will begin the development of the project. The Mineral Reserves as of December 2019 of La Yaqui Grande deposit are 19.2M tonnes of 1.17 g/t Au and 16 g/t Ag, containing 724K Oz Au and 9.8M Oz Ag. Additionally, Measured and Indicated Resources are 1.3M tonnes of 1.01 g/t Au and 8 g/t Ag, containing 43K Oz Au and 340K Oz Ag. Highlights of the economic study include an average Au production of 123K Oz Au per year; AISC of $578 per Oz Au; NPV of $165M at a 5% discount rate and an after tax IRR of 41% using a base case Au cost of $1,450 per Oz or  a NPV of  $260M at a 5% discount rate and an after tax IRR of 58% using a base case Au cost of $1,750 per Oz; mine life of five years; and an initial capital of $137M to be spent over a two year period starting in H2, 2020. From the total investment, between USD $15-$20M will be spent during 2020 and the rest during 2021 and the first semester of 2022. Part of the resources will be used to build a heap leach pad, waste dump, water treatment plant, as well as the installation of a crushing circuit.
  • GoGold Resources Inc., announced initial mineral resource estimate at its Los Ricos project in Jalisco, and updated the mineral reserve at the Parral Tailings operation, and the mineral resource estimate at its Esmeralda Tailings project located near Parral, Chihuahua. At Los Ricos South, measured & indicated resource are 10M tonnes of 0.91 g/t Au and 119 g/t Ag (2.27 g/t AuEq or 199 g/t AgEq) for a total of 293K Oz Au and 38.05 M Oz Ag (728K Oz AuEq or 63.7M Oz AgEq), and inferred resources of 3.3M tonnes of 0.88 g/t Au and 112 g/t Ag (2.17 g/t AuEq or 190 g/t AgEq) for a total of 93K Oz Au and 11.78 M Oz Ag (227K Oz AuEq or 19.9M Oz AgEq). Los Ricos South mineral resource is amenable to open pit and bulk underground mining methods, and will form the base of a PEA expected to be completed by the end of 2020. At Parral Tailings, proven + probable reserves are 15.4M tonnes of 0.34 g/t Au and 33 g/t Ag (0.72 g/t AuEq or 64 g/t AgEq) for a total of 171K Oz Au and 16.6M Oz Ag (358K Oz AuEq or 31.6M Oz AgEq). At La Esmeralda Tailings, measured and indicated resources are 5.72M tonnes of 0.26 g/t Au and 49 g/t Ag (72 g/t AgEq) for a total of 48.4K Oz Au and 9.1M Oz Ag (13.3M Oz AgEq).
  • Consolidated Zinc Limited advised that the environmental authority of Mexico has granted their approval for refurbishment of its Plomosas plant in Chihuahua, and construction and operation of the tailings storage facility (TSF). The company is finalizing the costing for the plant refit and TSF build and expect to advise the findings of the study this quarter.
  • Ridgestone Mining Inc., entered into a toll milling agreement to process bulk samples from historic dumps of the Alaska vein at its Rebeico project in Sonora. Highlights include a fixed-price toll mining agreement with nearby Real Viejo flotation mill for up to 300 tonnes per day, and bulk samples planned to process historical surface dump material grading up to 16.85 g/t Au and 2.70% Cu. In addition, Ridgestone has also received bids from mining contractors to rehabilitate historical underground workings along the Alaska vein to facilitate underground and bulk sampling of zones where drill-hole intervals assayed 36.1g/t Au and 1.22% Cu over 1.5m, and 8.31gT Au and 2.41% Cu over 3.25m in 2018.

ON DEALS AND CORPORATE ISSUES

  • Brigadier Gold Ltd., announced the appointment of its new special adviser (Picachos project in Sinaloa).
  • Santacruz Silver Mining Ltd., signed an option agreement with Grupo Peñoles to acquire the Zimapan property and related assets located in Zimapan, Hidalgo for a total consideration of USD $20M. Assets to be acquired pursuant to the Transaction include: The Zimapan mill facility which is a 75,000 dry metric tonnes (DMT) per month facility with zinc, lead and copper circuits; surface and underground infrastructure including electrical and other necessary infrastructure to carry on day to day operations; and 34 mining concessions covering an area of 5,139 hectares. To date, 14 mineral zones have been identified that are characterized as polymetallic replacement mineralization of Pliocene age. Within the mineral zones, Ag, Pb, Zn, and Cu minerals have preferentially replaced the carbonate host rocks and pre-existing skarn bodies to produce disseminated, semi-massive sulphide and massive sulphide bodies that occur in proximity to monzonitic intrusions and quartz-feldspar porphyry dikes.
  • Minera Alamos Inc., hired new VP project development and appointed new COO (Santana project in Sonora).
  • Consolidated Zinc Ltd., presented results from its annual general meeting of shareholders and advised that a new constitution was approved and adopted by shareholders (Plomosas mine in Chihuahua).
  • Candente Gold Corp., launched the “CEO Verified” Discussion Forum on AGORACOM. The forum will serve as the company’s primary social media platform to interact with both shareholders and the broader investment community in a fully moderated environment  (El Oro property in Mexico State).
  • Monarca Minerals Inc., announced that it is proposing to settle an aggregate of approximately $380.6K owing to certain officers and directors and services providers through the issuance of an aggregate of approximately 7,612,000 common shares at an issue price of CAD $0.05. The amount to be settled includes approximately $202K out of $350K in accrued directors’ fees and management and consulting fees owing to the company’s directors and officers, as the case maybe. (Tejamen project in Durango).
  • Telson Mining Corporation, provided an update on filing annual 2019 audited and Q1, 2020 financial statements. Telson expects to file the required annual and Q1, 2020 financials an MD & A by the July 30, 2020 deadline. (Tahuehueto project in Durango).

ON SOCIAL RESPONSIBILITY

  • The Municipal Water and Sanitation Board of Chihuahua (JMAS) is extracting water from the Esmeralda and Arbolito mines to feed a dam in Parral Chihuahua. The dam is currently at 13% of its capacity and in order not to cause ecological damage, it cannot be left dry. Water extracted from the mines also guarantees supply to a sector of the city.
  • Minera Peñasquito supplies water to 5 thousand people of the communities of Cedros, Mesas, Charcos, Nuevo Peñasco and Palmas. Regarding make water safe to drink, the company has four treatment plants, one inside the Peñasquito mine and three more outside, in the Cedros, Mesas and Charcos communities, from which potable water is distributed to the aforementioned localities.
  • Minera Saucito, a subsidiary of Fresnillo plc, received international certification for its commitment to the health and safety of its collaborators. The ISO 45001 Certificate: “Occupational health and safety management systems at work” was obtained from the international company BSI Group, based in the United Kingdom, whose services are: evaluating, certifying and training operating processes of different industries such as: mining, pharmaceutical, aerospace, entertainment, among others. The model stands out for its objective of reducing risks and injuries to collaborators derived from the processes associated with the exploration and exploitation of minerals. Minera Saucito is the first Fresnillo plc Unit to achieve this certification.
  • Minera Penmont (Fresnillo plc), implemented a health model for the safety of its workers in the face of the COVID-19 pandemic. The company has taken a series of multidisciplinary medical and health activities aimed at promoting a culture of disease prevention and control, and the elimination of risk factors at work. The effectiveness and implementation of this type of model is recognized by the World Health Organization and allows comprehensive care within the mine that is committed to the well-being and safety of the workforce.
  • Compañía Minera Cuzcatlán (Fortuna Silver), dissociated itself from the alleged environmental incident and reiterated its commitment to the communities in which it operates, following up on the community’s concern about physical changes in the water of two recently built grazing ponds in the Ocotillo area, in the municipality of Magdalena Ocotlán. Later on, the Federal Attorney for Environmental Protection (PROFEPA) announced that it carried out an inspection of the built grazing ponds in the Ocotillo area and demarcated mining company from any responsibility for the damages in the water pools in Ocotlán (San Jose mine in Oaxaca).

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, quartz veins in a low sulphidation epithermal system in a prospect in Oaxaca, Mexico.  Photo by Miguel A Heredia.

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

193By Jorge Cirett

During the 30th week of the year (July 20th to July 26th, 2020), at least 37 press releases were announced by companies working in Mexico. To note, six of those were exploration updates and strikingly twelve more were related to financing. These are either opening or closing rounds, and it is difficult to assign the total amount to any given week, but the announcements on this period add up to $23.4 M and C$168.5 M (dominated by Argonaut’s C$126.5 M and Discovery’s C$35 M). Clearly there is a spike in funds flowing to mining companies, probably supported by stronger metal prices on fears of an underperforming economy and heightened global tensions. ON MEXICO ISSUES, exploration is picking up in the country after the end of the Coronavirus lockdown, with several companies performing drilling programs. Alacero warned on excessive steel importation. ON EXPLORATION, in Sonora, Carlyle Commodities commenced its field program on Cecilia. In Chihuahua, Radius updated on the geology and geochemistry of its Plata Verde project, an interesting play. In Sinaloa, Kootenay Silver released good drilling results on its Copalito project. In Durango, Mithril Resources is about to drill Coplaquín. In Guanajuato, VanGold Mining is to start an underground drilling campaign at El Pinguico. In Zacatecas, Defiance Silver resumed its field program at San Acacio. ON MINING, Premier Gold and Fresnillo PLC presented Q2 2020 reports. Premier Gold is reducing its daily output and workforce at Mercedes. Peñasquito informed on its dealing with the Coronavirus pandemic. ON FINANCING, twelve companies made announcements regarding the opening or closing of financing rounds, or financing related news: Canasil Resources ($1.25 M), Orex Minerals ($1.1 M), VanGold Mining ($2.45 M), Golden Minerals ($7.5 M), VanGold Mining ($3.8 M), Sonoro Metals (C$5 M), Monarca Minerals (C$2 M), Discovery Metals (C$35 M), Advance Gold ($725 K), Argonaut Gold (C$126.5 M), Almaden Minerals ($2 M), Peal Mexico acquired $3.85 M of Magna Gold shares. ON RESOURCES AND DEVELOPMENT, Discovery Metals released drill results from its Cordero project. Golden Tag Resources informed on strategic growth opportunities with its San Diego project in Durango. GoGold Resources released assay results from Los Ricos South project in Jalisco. GR Silver reported results from 17 historic drill holes from its Plomosas project in Sinaloa. ON DEALS AND CORPORATE ISSUES, Prime Mining completed the acquisition of the Los Reyes project in Sinaloa. Santacruz Silver sold its Zacatecas properties to Zacatecas Silver Corp.. Evrim Resources sold its La Lola and Cumaro projects to a Mexican private company for an NSR. Redstar Gold acquired all shares of Heliodor Metals, which holds the Oso Negro, La Lola and Cumaro projects in Sonora. ON SOCIAL RESPONSIBILITY. Alamos Gold Peñasquito, Grupo Mexico and Fresnillo PLC donated medical equipment to communities near its operations. A virtual immersion program for kids was held in San Luis Potosí.

ON MEXICO ISSUES

  • Exploration is picking up speed in Mexico after the end of the Coronavirus induced lockdown. Drilling programs are beginning or already underway at Cordero, Chihuahua (Discovery Metals), Pánuco in Sinaloa (Vizsla Resources), Álamos Silver in Sonora (Minaurum), Los Reyes in Sinaloa (Prime Mining), Las Minas in Veracruz (Mexican Gold), Cerro Caliche in Sonora (Sonoro Metals), Copalquín in Durango (Mithril Resources), Rodeo in Durango (Golden Minerals) and Nora in Durango (Canasil Resources).
  • Gold and silver prices are closing the week with highs not seen in several years. Gold was above $1,900 hundred an ounce by late Friday, while silver stood above $22.70 an ounce. The Coronavirus crisis, with the foreseen economic stimulus packages by several countries and the souring relations between China and the United States are seen as the reason for the continued upward trend.
  • Alacero (Asociación Latinoamericana de Acero) warned against the excessive importation of steel, in a moment when sales are just recovering.

ON EXPLORATION

  • Defiance Silver Corp. announced the resumption of its field program that includes core re-logging, surface and underground mapping, geochemistry and surface diamond drilling at its San Acacio project in Zacatecas.
  • VanGold Mining Corp. intends to initiate an underground drilling campaign to target extensions of high-grade mineralization at its Pinguico project in Guanajuato. The company also is to clear the El Pinguico shaft and sample the bottom of the backfill, with the aim to ship it to a nearby mill for processing.
  • Kootenay Silver Inc. released assay results from three more holes at its Copalito project in Sinaloa. Core length highlighted intervals comprise 56.0 m @ 58 gpt Ag (including 22 m @ 106 gpt Ag, which include 5.0 m @ 250 gpt Ag, 0.247 gpt Au); 10.3 m @ 80 gpt Ag, 0.90 gpt Au; 7.1 m @ 30 gpt Ag, 0.31 gpt Au; 13.1 m @ 347 gpt Ag, 0.22 gpt Au (including 3.2 m @ 1,297 gpt Ag, 0.28 gpt Au, which includes 1.0 m @ 2,830 gpt Ag, 0.14 gpt Au). To date 1,600 m of the 3,000 m program have been completed.
  • Radius Gold Inc. released results of recent detailed rock chip sampling and geological mapping at its Plata Verde project in Chihuahua. Multiple sub-horizontal breccia zones cemented by barite-calcite-silver chlorides, up to 75 m in diameter have been sampled in different levels, bounded by stockwork and fracture fill of massive to crustiform banded barite-calcite with silver chlorides, sulphosalts and native silver, and disseminated mineralization of sulphosalts within the volcanic host rock. The mineralization is exposed on the sides of a small creek, and covered by felsic volcanic rocks in three directions. The average silver value of 255 samples is 156 gpt Ag, while 74 samples on the breccias average 258 gpt Ag.
  • Mithril Resources Ltd. presented its quarterly activities report, in which the acquisition of Sun Minerals Pty Ltd. was completed, $5.92 M were raised and the drilling equipment moved to site at the Copalquín project in Durango. The next move is the completion of a 5,000 m diamond drilling campaign at Copalquín.
  • Carlyle Commodities Corp. mobilized crews for exploration of its Cecilia project in Sonora. “The Phase 1 exploration program has been designed to refine targeting at Cerro Magallanes which is a large rhyolite flow dome complex, host of several historic workings and multiple high-grade gold mineral occurrences”. Programmed work includes property scale mapping, a detailed structural mapping, processing and interpretation of Aster images, surface sampling and a 10 line-km induced polarization survey. Road rehabilitation and drill pad building to support a drill program on the phase 2 is also contemplated.

ON MINING

  • Premier Gold Ltd. reported production results for the second quarter of 2020. Its Mercedes mine operations in Sonora were halted at the end of March due to the Coronavirus pandemic, and a phased re-start commenced in June. An optimization plan was developed, including the consolidation of five mine portals to one, reducing the mining rate form to 2,000 to 1,200 tonnes per day and operation of the processing plant on a campaign basis, reduction of 40% of the employee base and 75% of the mining related contractors.
  • Fresnillo PLC presented its second quarter 2020 production report. During the period the company produced 13.6 M Oz Ag, 184.4 K Oz Au, 16,180 tonnes Pb, 26,726 tonnes Zn. On exploration, 135,000 m were drilled at the mines, as part of a 440,000 m program to convert resources into reserves. Additionally 39,000 m of exploration drilling was carried out as part of the 228,000 m program at projects. Interesting results were obtained at Fresnillo and Guanajuato, while negotiations continue with communities in other projects to obtain access for drilling. Fresnillo 2Q 2020 Production1
  • Minera Peñasquito informed 15,000 COVID tests have been applied since the re-commencement of activities on June 1, resulting seven positive cases during the past week and the protocol was followed to identify all persons they had contact with. The use of face masks has been agreed with the union, on all public spaces, with the exception of the dining room.

ON FINANCING

  • Peal Mexico S.A. de C.V. announced the acquisition of 11 M shares of Magna Gold Corp. under the terms of a settlement for an aggregate deemed consideration of $3.85 M in an agreement to settle an existing arbitration proceeding between the parties in relation to Magna’s San Francisco mine in Sonora. Peal now owns 16.9% of Magna’s issued and outstanding shares.
  • Canasil Resources Inc. announced a non-brokered private placement aiming to raise up to $1 M, same placement that was oversubscribed for total gross proceeds of $1.25 M (Nora, Durango).
  • Orex Minerals Inc. closed the final tranche of its non-brokered private placement for aggregate gross proceeds of $1.11 M, bringing the total aggregate proceeds to $2.1 M. (Sandra, Durango).
  • VanGold Mining Corp. has arranged a non-brokered private placement financing to raise up to $2.45 M (El Pinguico, Guanajuato).
  • Golden Minerals Co. is increasing its previously announced offering to raise up to $7.5 M in gross proceeds (Rodeo, Durango).
  • VanGold Mining Corp. expanded due to increased demand the size of its non-brokered private placement financing, for gross proceeds of $3.8 M (El Pinguico, Guanajuato).
  • Sonoro Metals Corp. is to undertake a non-brokered private placement to raise up to C$5 M in gross proceeds (Cerro Caliche, Sonora).
  • Monarca Minerals Inc. announced a non-brokered private placement to raise up to C$2 M (San Jose, Chihuahua).
  • Discovery Metals Corp. arranged a non-brokered institutional private placement to raise C$35 M, “ Eric Sprott has agreed to invest C$15,000,000 in the Private Placement,” (Cordero, Chihuahua).
  • Advance Gold Corp. announced it proposes to increase to $725 K its previously announced non-brokered private placement (Tabasqueña, Zacatecas).
  • Argonaut Gold Inc. closed its previously announced bought deal public offering for aggregate gross proceeds of C$126.5 M, thorough a syndicate of underwriters led by BMO Capital Markets (San Agustín, Durango).
  • Almaden Minerals Ltd. announced a proposed non-brokered private placement financing intended to raise up to $2 M (Ixtaca, Puebla).

ON RESOURCES AND DEVELOPMENT

  • Discovery Metals Corp. released results from eight holes at its Cordero project in Chihuahua. Highlighted core length intercepts comprise 5.3 m @ 225 gpt Ag 0.7 gpt Au, 5.1% Pb, 5.5% Zn (including 1.4 m @ 700 gpt Ag, 0.74 gpt Au, 16.1% Pb, 14.0% Zn); 4.3 m @ 365 gpt Ag, 0.55 gpt Au, 2.1% Pb, 4.0% Zn (including 1.5 m @ 489 gpt Ag, 0.82 gpt Au, 2.9% Pb, 11.1% Zn); 120.4 m @ 30 gpt Ag, 0.11 gpt Au, 0.4% Pb, 1.5% Zn; 134.6 m @ 23 gpt Ag, 0.05 gpt Au, 0.5% Pb, 1.1% Zn; 44.8 m @ 35 gpt Ag, 0.10 gpt Au, 0.7% Pb, 1.7% Zn; 0.8 m @ 1,992 gpt Ag, 0.79 gpt Au, 16.1% Pb, 14.2% Zn.
  • Golden Tag Resources Ltd. informed on strategic growth opportunities with its San Diego project in Durango. The project with 31.6 M Oz in indicated resources is fully permitted for drilling four key high priority target zones: 1849, Fernandez, Trovador and Arroyo. Drill intercepts in the Fernandez zone include 212 m @ 54 gpt Ag, 0.5% Pb, 1.3% Zn; 238 m q 64 gpt Ag, 0.8% Pb, 1.6% Zn; 257 m @ 66 gpt Ag, 0.7% Pb, 1.7% Zn; 186 m @ 53 gpt Ag, 0.5% Pb, 1.2% Zn. Mergers, strategic, corporate and project acquisitions are being evaluated, with a focus on silver.
  • GoGold Resources Inc. released the assay results from six diamond drill holes at the Los Ricos South project. Two holes were drilled at Rascadero, two at San Juan and two more at Las Lamas. Highlighted core length intersections comprise: 0 m @ 0.25 gpt Au, 59 gpt Ag; 16.7 m @ 1.32 gpt Au, 268 gpt Au (including 5.4 m @ 3.33 gpt Au, 673 gpt Ag); 21.5 m @ 0.21 gpt Au, 26 gpt Ag; 7.7 m @ 0.45 gpt Au, 65 gpt Ag; 8.9 m @ 0.8 gpt Au, 31 gpt Ag.
  • GR Silver Mining Ltd. reported high-grade results from 17 historical drill holes from the San Juan area of its Plomosas property in Sinaloa. These results define a mineralized strike length of up to 1,000 m. Some of the highlighted true width intercepts comprise: 3.8 m @ 563 gpt Ag, 0.3 gpt Au, 1.6% Pb, 2.7% Zn; 2.5 m @ 846 gpt Ag, 0.8 gpt Au, 2.7% Pb, 6.0% Zn (including 0.9 m @ 2,300 gpt Ag, 2.1 gpt Au, 7.6 % Pb, 16.3% Zn); 3.3 m @ 335 gpt Ag, 0.1 gpt Au, 0.1% Pb, 0.2% Zn; 5.6 m @ 363 gpt Ag, 0.1 gpt Au, 0.8% Pb, 1.9% Zn; 10.7 m @ 226 gpt Ag, 0.3% Pb, 0.3% Zn; 2.8 m @ 141 gpt Ag, 0.3% Pb, 0.7% Zn.

ON DEALS AND CORPORATE ISSUES

  • Prime Mining Corp. completed the acquisition of the Los Reyes project (formerly Guadalupe de Los Reyes) in Sinaloa. The company made a US$1.5 M payment to Vista Gold Inc., after which Vista no longer retains two separate 2% net smelter royalties on production from open-pit or underground mining, or a back-in right to assume a 49% non-carried interest in any underground mining. “Prime is required to pay Vista an additional US$2,100,000 through two payments of: (i) US$1,100,000 no later than six months from the Acquisition Date; and (ii) US$1,000,000 no later than twelve months from the Acquisition Date. If the Company fails to make the two payments, Vista’s net smelter royalties and back-in right will be reinstated”.
  • Santacruz Silver Mining Ltd. entered into an agreement with Zacatecas Silver Corp. for the sale of a 100% interest in the Zacatecas properties for consideration of US$1.5 M and the issuance of 5 M shares of Zacatecas Silver. The Zacatecas properties comprise 149 mining concessions totaling approximately 7,826 ha in the Fresnillo Silver Belt, and include the Panuco deposit, which has an inferred resource of 3.95 M tonnes @ 153 gpt Ag, or 19.5 M Oz Ag, remaining open along strike.
  • Evrim Resources Corp. entered into an agreement with a private Mexican company to sell two non-core exploration properties in exchange of NSR royalties. La Lola is a 6,301 ha land package that covers the La Barra fluorite vein and El Cumaro is a 620 ha claim covering a low sulfidation epithermal field. Evrim will transfer 100% interest in the La Lola and Cumaro properties in exchange for 2% and 1% NSR respectively, and a 0.5 % NSR right on 7,053 ha of the Picachos claims, should the claims be acquired by the Mexican private company. Half of the La Lola NSR can be bought for US$1.75 M and half of the El Cumaro NSR by US$1.0 M.
  • Redstar Gold Corp. entered into a binding agreement to acquire 100% of the shares of Heliodor Metals Ltd., in which Redstar has agreed to issue 86.5 M shares for 100% of the outstanding Heliodor shares. Heliodor has interest in: the Oso Negro 1,500 ha project, which has three main veins and no drilling; The La Lola 5,400 ha land package which contains the 5 km long La Barra epithermal vein (see previous entry under Evrim); Cumaro “is the downthrown block of a large low sulphidation vein field”. Redstar has agreed to conduct a C$6.0 M private placement

ON SOCIAL RESPONSIBILITY

  • Alamos Gold donated medical equipment to the Sahuaripa municipality in Sonora.
  • Peñasquito donated medical equipment to several authority bodies in Zacatecas.
  • Grupo Mexico donated protection equipment to general hospitals in Cuautla and Axochiapan in Morelos.
  • The Instituto de Metalurgia de San Luis Potosí carried out a virtual immersion program for kids.
  • Fresnillo PLC continues to provide cleaning and medical supplies in Guadalupe y Calvo (Chihuahua), Caborca (Sonora) and Fresnillo (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 image below: Silicified rocks signaling the paleo water table of a low sulfidation epithermal system in Queretaro. Picture by Jorge Cirett.

193

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

 

Argillic alteration

By Miguel A Heredia

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

 ON MEXICO ISSUES

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

ON EXPLORATION

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

 ON MINING

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

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

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

 

ON FINANCING

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

ON RESOURCES AND DEVELOPMENT

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

ON DEALS AND CORPORATE ISSUES

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

ON SOCIAL RESPONSIBILITY

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

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

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

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

186

By Jorge Cirett

During the 26th week of the year (June 22nd to June 28th, 2020), at least 30 press releases were announced by companies working in Mexico. Notably, 6 of those were exploration updates and 6 more related to financing. ON MEXICO ISSUES, Mining and  Automotive industries are to operate even if there is a resurgence of Coronavirus cases. The Mining Fund Technical Committee approved US$11.6 M for 98 projects in 11 States. Canadian Mining companies are under pressure to pay disputed taxes. AMLO rejected the idea of nationalizing the lithium industry…. but declares the conditions on which those conditions are granted have to be reviewed (Keep in mind what’s been happening in the electricity industry).  ON EXPLORATION, in Sonora, Ridgestone completed a maiden drill program on its Rebeico project; Tarachi Gold acquired the Tarachi property in Sonora; Aztec Minerals identified multiple chargeability anomalies at its Cervantes project; Tocvan Ventures released strong results of its soil program on the Pilar project. Vizsla Resources released high grade drilling results from its Panuco project. GoGold Resources released results from three more drill holes at its Los Ricos South project.  ON MINING, VanGold Mining plans to clearing the shaft at the Pinguico property to provide access for sampling and eventually infill extraction. ON FINANCING, Southern Silver is eyeing a private placement to raise up to C$7 M. Aura Minerals authorized a dividend’s policy. First Mexican Gold granted 2.5 M options to directors, officers and consultants. Orex Minerals raised $989 K on the closing of the first tranche of its non-brokered private placement. Apollo Gold aims to raise up to $5 M. McEwen Mining refinanced its $50 M senior secured term loan facility.   ON RESOURCES AND DEVELOPMENT, GR Silver Mining released drill results from historic holes at its Plomosas project in Sinaloa. Magna Gold filed a technical report on its San Francisco mine, in Sonora. SilverCrest Metals updated on the development of the Las Chispas project under the Coronavirus emergency. ON DEALS AND CORPORATE ISSUES, Argonaut Gold and Alio Gold announced that COFECE, the last bureaucratic hurdle, has cleared the transaction on its merger. Riverside Resources disclosed additional funding from BHP on its generative copper exploration program in Sonora. Southern Silver Exploration signed an agreement to acquire Electrum Global Holdings’s 60% share on the Cerro Las Minitas project in Durango. Candente Gold mobilized a team for the due diligence on the El Dorado project and the SDA mill in Nayarit. Hochschild optioned the Los Cuarenta property in Sonora from Riverside Resources. Apollo Gold Corp. entered into a LOI to option the “Jalisco Group of properties” from First Majestic. ON SOCIAL RESPONSIBILITY. Peñasquito donated medical supplies to the IMSS Hospital Número 12 in Concepción del Oro, Zacatecas. Esperanza Silver repaired the water supply system in San Agustín Tetlama, Morelos.

ON MEXICO ISSUES

  • Mining and the Automotive industries to operate, even if there is a resurgence (hypothetical) of Coronavirus cases. Graciela Márquez, Economy Secretary, explained these industries are essential, and are to continue activities under any color of the health lights system.
  • The Mining Fund Technical Committee approved the funding of 98 projects for US$11.6 M ($260.9 M pesos) for pavement laying, sidewalk construction and water supply nets. The funds are to be distributed as follows: Sonora US$6.12 M, Zacatecas US$2.47 M, Durango US$1.08 M, Coahuila US$0.93 M, Chihuahua US$0.71 M, San Luis Potosí US$0.21 M, Aguascalientes US$90 K, Jalisco US$54 K, Michoacán US$45 K, Oaxaca US$32 K and Hidalgo US$14 K.
  • Canadian Mining companies are under pressure to pay disputed taxes to the Mexican government, according to University academics on the matter.
  • The president of Mexico, Andres Manuel Lopez Obrador, rejected the idea of nationalizing the lithium exploitation in the country. His comment comes regarding the ideas expressed by Victor Manuel Toledo, Environment Secretary and staunch opponent of mining. According to the president, there is already a legal framework for contracts and concessions by the government for the exploitation of mineral resources. However, he also stressed that the conditions on which those concessions are granted have to be reviewed.

ON EXPLORATION

  • Ridgestone Mining Inc. completed the maiden drill program at its Rebeico project in Sonora. Under the program 1,674 m were drilled in ten holes. Most of the holes tested the geometry of gold-copper mineralization on the New Year Zone. Core samples are being submitted to the lab.
  • Vizsla Resources Corp. released drilling results from two holes on the Napoleon vein corridor at the Panuco project in Sinaloa. Highlighted core-length intercepts comprise: 8.2 m @ 739 gpt Ag, 11.06 gpt Au; 2.0 m @ 1,527 gpt Ag, 24.9 gpt Au on one hole; 2.5 m @ 454 gpt Ag, 9.20 gpt Au; 5.1 m @ 309 gpt Ag, 8.00 gpt Au, 2.22% Pb, 4.75 % Zn; 1.8 m @ 186 gpt Ag, 15.63 gpt Au, 1.12% Pb, 7.73% Zn in the second hole. True widths are estimated at between 46-66% of down hole lengths.
  • GoGold Resources Inc. informed on the results from three diamond drill holes at the Los Ricos South project. The holes drilled at the San Juan, Rascadero and East veins returned core length intervals of 27 m @ 0.09 gpt Au, 28 gpt Ag (including 4.0 m @ 0.45 gpt Au, 89 gpt Ag); 39.0 m @ 0.45 gpt Au, 117 gpt Ag (including 11.0 m @ 1.40 gpt Au, 319 gpt Ag); 3.2 m @ 0.15 gpt Au, 25 gpt Ag.
  • Tarachi Gold Corp. commenced fieldwork at its Tarachi project in Sonora. Tarachi’s geological crews have begun a two-week field program of geological mapping and rock sampling of known mineral occurrences to verify historical work programs. Historical work includes drill intercepts of 5.0 m @ 34.5 gtp Au, 3.0 m @ 24.3 gpt Au; 1.32 m @ 110 gpt Au. The 2,560 ha project includes the San Javier, Pretoria, Chivitas, Jabali, Juliana, Texana and Tarachi concessions.
  • Aztec Minerals Corp. identified multiple chargeability anomalies on a 3-dimensional IP-Resisitivity survey completed last year at its Cervantes property in Sonora. Each of the 6 porphyry prospects along the corridor exhibit strong porphyry alteration and Au (Cu) mineralization, while none of the Jacobo, Purisima West, Purisima East and Estrella targets have ever been drill-tested .
  • Tocvan Ventures Corp. released results from the soil sampling survey undertaken at its Pilar property in Sonora. The results include values of up to 8 gpt Au and 317 gpt Ag, and collectively have highlighted the East Zone as a new focus area..

ON MINING

  • VanGold Mining Corp. plans to begin clearing the El Pinguico shaft at its El Pinguico project in Guanajuato. The mucking of the shaft will allow the company to sample the lower part of the old workings infill, which on surface averaged 1.75 gpt Au, 183 gpt Ag. It will also allow the inspection of underground drifts for extracting the mineralized material, and check on past producing high-grade stopes.

ON FINANCING

  • Southern Silver Exploration Corp. plans a fully marketed private placement aiming to gross proceeds for a minimum of C$7 M. The company entered into a definitive agreement with Electrum Global Holdings L.P. to acquire Electrum’s 60% ownership interest in Southern Silver Holdings Ltd. for current and future cash and share payments totaling US$15.0 M (Cerro Las Minitas, Durango).
  • Aura Minerals Inc. announced its board of directors approved a dividend policy (Aranzazu, Zacatecas).
  • First Mexican Gold Corp. granted 2.5 M options to directors, officers and consultants (Hilda, Sonora).
  • Orex Minerals Inc. closed the first tranche of its non-brokered private placement, for gross proceeds of $989 K (Sandra-previously Sandra Escobar-, Durango).
  • Apollo Gold Corp. is conducting a non-brokered placement aiming to raise up to $5 M in gross proceeds (Eztzatlan, Jalisco).
  • Mc Ewen Mining Inc. announced the refinancing of its $50 M senior secured term loan facility. “As part of the refinancing, Sprott Private Resource Lending II (Collector), LP has replaced Royal Capital Management Corp. as a lender and the administrative agent for the Term Loan; and Evanachan Limited, a corporation wholly-owned by Rob McEwen, remains a lender….. the maturity date of the Term Loan has been extended by two years to August 31, 2023” (El Gallo, Sinaloa).

ON RESOURCES AND DEVELOPMENT

  • GR Silver Mining Ltd. Released drill results from historic holes at its Plomosas project in Sinaloa. These high-grade silver intercepts are outside the previously mined Pb-Zn-Ag-Au ore of the Plomosas mine area. Some of the highlighted true width (tw) intercepts comprise: 14.6 m @ 46 gpt Ag, 1.0 gpt Au, 1.7% Pb, 2.2% Zn; 5.4 m @ 326 gpt Ag, 1.9 gpt Au, 0.7% Pb, 1.2% Zn (including 1.9 m @ 900 gpt Ag, 1.9 gpt Au, 1.9% Pb, 3.2% Zn); 2.1 m @ 349 gpt Ag, 0.4 gpt Au, 2.3% Pb, 1.3% Zn); 2.7 m @ 1,469 gpt Ag, 0.5 gpt Au, 2.2% Pb, 3.2% Zn; 17.4 m @ 4 gpt Ag, 3.6 gpt Au; 2.2 m @ 398 gpt Ag, 0.3% Pb, 0.7% Zn; 32.8 m @ 32 gpt Ag, 0.9 gpt Au; 9.8 m @ 28 gpt Ag, 0.7 gpt Au, 4.2% Pb, 0.9% Zn; 13 m @ 13 gpt Ag, 2.8 gpt Au, 0.5% Pb, 1.4% Zn; 11.7 m @ 8 gpt Ag, 1.7 gpt Au, 0.4% Pb, 0.7% Zn.
  • Magna Gold Corp. filed an independent technical report for the San Francisco Gold project in Sonora.
  • SilverCrest Metals Inc. continues activities at its Las Chispas project in Sonora. A fully confined camp for 160 persons has been built at the site. All personnel is tested for COVID-19, and transported to the project once the negative results are received. Currently eight rigs are operating on the H2 program focusing on the high-grade resource expansion at the veins Babicanora (SE, NE, deep), Babi Sur (SE to depth), Babi Vista (all directions), Babicanora Norte (SE, NW, deep), Las Chispas (SE to depth), Giovanni (SE to depth), William Tell (all directions), and Varela (all directions). “Underground development has resumed, with a target of 500 metres per month by Q3, 2020, under confined camp conditions. The first ventilation raise in the Babicanora area has been completed. “. The feasibility study is progressing.

 

ON DEALS AND CORPORATE ISSUES

  • Argonaut Gold Inc. and Alio Gold Inc. announced the receipt of the clearance decision from the Comisión Federal de Competencia Económica (COFECE) with respect to the pending merger between Argonaut Gold and Alio Gold. This approval “was the final government agency approval required before completing the merger, which is anticipated to occur between June 29, 2020 and July 3, 2020” (El Castillo, Durango; Ana Paula, Guerrero).
  • Riverside Resources Inc. announced the continuation of the exploration agreement with BHP Exploration Chile SpA for the funding of generative copper exploration in the copper producing belt of Sonora. “BHP will be providing Riverside with US$720,000 to commence the first half of the second year of the Program to continue to grow the portfolio of copper projects which is an increase of US$220,000 from the initial plan ”.
  • Southern Silver Exploration Corp. entered into a definitive agreement with Electrum Global Holdings L.P. to acquire Electrum’s 60% ownership interest in Southern Silver Holdings Ltd. for current and future cash and share payments totaling US$15.0 M to gain 100% interest in the Cerro Las Minitas project, in Durango. Payments include US$5M in cash and US$2 M in shares by September 2020 (less credit for deposit of C$1.35 M paid in June 2020), US$2 M in cash and US$2 M in shares six months from closing and US$2 M in cash and US$2 M in shares one year from closing Cerro Las Minitas, Durango).
  • Candente Gold Corp. mobilized a team for the due diligence process on its acquisition process from Magellan Acquisition Corp. of the San Dieguito de Arriba processing plant and the El Dorado project in Nayarit. The Eldorado epithermal vein trend has been traced for 3.5 km along strike, hosting multiple mineralized zones, including distinct high-grade veins and lower grade bulk tonnage stockwork zones extending over tens of meters in width in both the hanging wall and footwall of the vein system.
  • Riverside Resources Inc. entered into a definitive option agreement with Minera Hochschild de Mexico S.A. de C.V. for Riverside’s Los Cuarentas project in Sonora. Hochschild is to pay Riverside US$90 K on the signing of the agreement and invest US$8 M over four years in the property to earn 51%, upon which it can elect to earn an additional 24% by spending a further $3 M and producing a feasibility study. Upon completing the second phase earn-in, Riverside will have the option to sell its interest for US$20 M, while retaining a 1% NSR.
  • Apollo Gold Corp. entered into a non-binding letter of intent (LOI) with First Majestic Silver Corp. for a three-year earn-in option to acquire First Majestic’s “Jalisco Group of Properties”. Under the terms of the agreement Apollo will pay $250 K and issue 4.29 M shares and 1.5 M warrants on closing of the definitive agreement. A further $200 K and 1 M shares a year from closing and $300 K and 1 M shares two years from the closing date. Apollo commits to spend at least $1.25 M on the properties within 36 months of closing. The properties comprise 5,240 ha of mining concessions which include the Etzatlan, Ampora, La Calabaza, Piedra and Bola mines.

ON SOCIAL RESPONSIBILITY

  • Peñasquito donated medical supplies in the fight against Coronavirus to the IMSS Rural Hospital number 12 in Concepción del Oro, Zacatecas.
  • Esperanza Silver de Mexico repaired the water supply equipment supplying the 2,500 inhabitants of San Agustín de Tetlama community in Morelos.

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

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

186

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

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By Jorge Cirett

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

ON MEXICO ISSUES

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

ON EXPLORATION

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

ON MINING

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

ON FINANCING

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

ON RESOURCES AND DEVELOPMENT

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

ON DEALS AND CORPORATE ISSUES

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

ON SOCIAL RESPONSIBILITY

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

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

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

172

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

134 - copia

By Jorge Cirett

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

ON MEXICO ISSUES

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

ON EXPLORATION

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

ON MINING

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

ON FINANCING

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

ON RESOURCES AND DEVELOPMENT

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

ON DEALS AND CORPORATE ISSUES

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

ON SOCIAL RESPONSIBILITY

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

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

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

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