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

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

By Jorge Cirett

During the 40th week of the year (September 30th to October 6th, 2019), at least 20 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, Gold production declined 2.8% in 2018. On the illegal blockade at the Peñasquito mine in Zacatecas, the president of Mexico asked for both parties to solve their differences (not pronouncing himself on the illegality of the blockade). Frisco and Cemex suffered big losses at the Mexican stock exchange. ON EXPLORATION, in Sonora, Magna Gold signed a LOI on the San Judas project in Sonora; Colibri Resource is to complete mapping and sampling on its Evelyn project. In Sinaloa, Kootenay Silver signed a surface access agreement on the Copalito project. In Zacatecas, Alien Metals is eyeing a drill program on its San Celso project.  ON MINING, Alien Metals presented financial results for the first semester 2019. Torex Gold produced 138,100 Oz Au at El Limon-Guajes mine in Guerrero during the Q3 2019. ON FINANCING, Southern Silver, Millrock Resources and Alien Metals granted 3.25 M, 1.88 M and 7 M incentive options respectively to officers, directors, employees and consultants. Fortuna Silver closed a bought deal financing for US$40 M. Azure Minerals raised $4 M. ON RESOURCES AND DEVELOPMENT, GoGold resources released results for one more hole at its Los Ricos project in Jalisco. Premier Gold released results on drilling at the Lupita extension on its Mercedes mine in Sonora. Goldplay disclosed channel surface sample results at its San Marcial property in Sinaloa. Silver Bull provided results from eleven more drill holes at the Sierra Mojada project in Coahuila (halted by an illegal blockade). ON DEALS AND CORPORATE ISSUES, Magna Gold signed a LOI on the San Judas project in Sonora. Silver Bull halted exploration at its Sierra Mojada project in Coahuila, due to an illegal blockade by a mining cooperative demanding a royalty payment on a property that is not in production. Fortuna Silver terminated the option on Prospero Silver’s Pachuca SE project in Hidalgo. Millrock and Riverside entered into a definitive agreement on the La Union, Los Cuarentas, El Pima, El Valle, and Llano del Nogal projects in Sonora. Santacruz Silver approved the acquisition of the remaining 50% of PCG Mining S.A. de C.V., parent company of Carrizal Mining, S.A. de C.V.. ON SOCIAL RESPONSIBILITY. No relevant news.

ON MEXICO ISSUES

  • Gold production in Mexico declined by 2.8% in July 2019. This is the 28th consecutive month of production contractions, the longest since 1981, according to INEGI (Instituto Nacional de Estadística y Geografía). In 2016 the production declined by 5.2%, in 2017 another 13.6% and a further 9.7% in 2018. Mineral products with annual increments include zinc at 10.7%, iron pellets with 2.9%, lead with 2.5%, sulphur with 1.6% and coal with 0.8%.
  • On Peñasquito’s illegal blockade, Mexico’s president, Andres Manuel Lopez Obrador, asked both parties two solve their differences in the conflict that has now more than two weeks (he did not mention the blockade being illegal). Newmont Goldcorp has offered more than US$25 M in investments, amount that the blockaders reckon as lacking. The Peñasquito mine produced 272,000 Oz Au last year, and had re-started production in mid-June after a first illegal blockade by truckers wanting to get a contract and locals accusing the company of water availability issues.
  • To the 3rd of October Frisco and Cemex have suffered big losses in the Mexican stock exchange (S&P/BMV IPC), 13.76% and 6.24% respectively, under the current commercial instability between USA and the European Union. Frisco is one of the biggest mining companies in Mexico, with operations in Baja California, Sonora, Chihuahua, Zacatecas and Aguascalientes (although Frisco is also known for its scant releases on reserves and resources). Cemex is the biggest Mexican cement producer, with operations internationally.

ON EXPLORATION

  • Magna Gold Corp. signed a LOI to explore the San Judas project in Sonora. The two mineral concessions cover 2806 ha underlain by a Precambrian basement composed of granite, gneiss, pegmatites and schist. “The entire sequence is affected by multiple deformations and the emplacement of intrusions such as leucocratic granites and andesitic dikes”. Gold mineralization is associated with quartz-breccia veins, quartz veins and “quartz stockworks emplaced along a series of parallel, foliated, low-angle shear zones within the igneous-metamorphic sequence”. Assays in an historical rock chip sample database have values of up to 230 gpt gold.
  • Colibri Resource Corp. contracted Auro Metallum Geology Consulting Services of Hermosillo, in Sonora, to complete a geological mapping study of its 506 ha Evelyn Gold Project near Caborca in Sonora. Recent sampling has returned up to 4.8 gpt Au from abundant quartz in sub-crop in a new zone identified by soil sampling.
  • Alien Metals Ltd. updated on the exploration of its San Celso and Los Campos projects in Zacatecas. At San Celso a next step of work will examine a drill program funded by a third party to test the strike extension of the main veins, and the depth extension below the existing workings.
  • Kootenay Silver Inc. signed a surface access agreement with the local ejido at the Copalito project in Sinaloa. Said agreement allows the company to mapping, sampling, geophysics, trenching and drilling. The 3,700 ha project covers a low sulfidation epithermal system with numerous veins, traced over up to 2 km of length, and 0.5 to 15 meters in width. Sampling has returned assays of up to 8.2 gpt Au, 532 gpt Ag, 17.4% Zn, 9.9% Pb and 5.1% Cu.

ON MINING

  • Alien Metals Ltd. presented its financial results for the first semester of 2019. As of the end of the period the company had total assets of US$1.2 M, of which US$0.4 M was cash, and current total liabilities for US$0.1 M (Donovan 2, Zacatecas).
  • Torex Gold Resources Inc. announced gold production of 138,100 ounces of gold during Q3 2019, on track to meet it 2019 production guidance of 430,000 ounces. During the period plant throughput averaged 12,370 tonnes per day (tpd), underground mining 1,110 tpd, open pit mining 14,270 tpd (El Limon-Guajes, Guerrero).

ON FINANCING

  • Southern Silver Exploration Corp. granted 3.25 M incentive stock options to directors, officers and consultants, exercisable at $0.27 per common share for a period of five years. The rolling incentive stock option plan was also approved, pursuant to which a maximum of 10% of the issued shares will be reserved for issuance under the plan. (Cerro Las Minitas, Durango).
  • Millrock Resources Inc. approved a grant of stock options to employees, officers, directors and advisers to the company, granting a total of 1.88 M stock options exercisable at $0.09 for five years. The company is also to settle debt owed for deferred cash compensation to certain officers, directors and employees by issuing 819 K Millrock shares (Batamote, Sonora).
  • Alien Metals Ltd. granted 7 M options to its technical director, Brill Brodie. All shares are exercisable from 1 October 2019, of which 3 M can be exercised at 0.22 pence, 3 M at 0.30 pence and 4 M at 0.45 pence (San Celso, Zacatecas).
  • Fortuna Silver Mines Inc. closed the previously announced bought deal offering of senior subordinated unsecured convertible debentures for an aggregate principal amount of US$40 M. “The Debentures mature on October 31, 2024 and will bear interest at a rate of 4.65% per annum, payable semi-annually in arrears on the last business day of April and October in each year, commencing on April 30, 2020. The Debentures will be convertible at the holder’s option into common shares in the capital of the Company” at a conversion price of US$5.00 per share (San José, Oaxaca).
  • Azure Minerals Ltd. raised $4 M (before costs) through a placement to institutional and sophisticated investors “to relaunch an aggressive exploration push on the Alacrán silver and gold projects” in Sonora. Azure is to undertake drilling to increase mineral resources at the Loma Bonita Au-Ag deposit, today standing at 150 K Oz Au, 4.8 M Oz Ag in 5.4 M tonnes @ 0.9 gpt Au, 28 gpt Ag.

ON RESOURCES AND DEVELOPMENT

  • GoGold Resources Inc. released results from one more hole completed on the San Juan area of its Los Ricos project in Jalisco. The hole returned 21.0 m @ 1.38 gpt Au, 146 gpt Ag (3.33 gpt AuEq), including 5.0 m @ 4.36 gpt Au, 436 gpt Ag (10.2 gpt AuEq). The San Juan area is located 400 m NW from the Los Ricos Main area.
  • Premier Gold Mines Inc. released results from its drilling program focused on delineating new mineral resources in the Lupita Extension at its Mercedes mine in Sonora. Highlighted results comprise 3.6 m @ 7.18 gpt Au, 54 gpt Ag; 1.8 m @ 24.24 gpt Au, 179 gpt Ag; 3.4 m @ 8.86 gpt Au, 67 gpt Ag; 3.1 m @ 13.65 gpt Au, 80 gpt Ag. The Neo target is 400 m north of San Martin is a possible extension of the Diluvio system, with one of three drill holes returning 3.1 m @ 13.65 gpt Au, 80 gpt Ag.
  • Goldplay Exploration Ltd. disclosed results from channel sampling on the Faisanes target of the San Marcial project in Sinaloa. The samples were cut by saw along the access road walls and road surface, returning 10 m @ 98 gpt Ag, 0.06 gpt Au) 0.6 m @ 587 gpt Ag, nil Au; 1.0 m @ 214 gpt Ag, nil Au; 1.1 m @ 42 gpt Ag, nil Au; 1.0 m @ 41 gpt Ag, 0.26 gpt Au.
  • Silver Bull Resources Inc. provided results from eleven more drill holes from its Sierra Mojada project in Coahuila. Highlights from the holes comprise: 17.1 m of oxide mineralization @ 120 gpt Ag, 0.43% Cu (including 1.35 m @ 539 gpt Ag, 0.27% Cu and 2.25 m @ 198 gpt Ag, 1.66% Cu and 0.55 m @ 403 gpt Ag, 1.6% Cu); 5.2 m of sulfide mineralization @ 149 gpt Ag, 0.87% Cu, 4.67% Zn. Due to an illegal blockade by a cooperative of miners who hold a royalty on two claims, the drill program has been paused.

ON DEALS AND CORPORATE ISSUES

  • Magna Gold Corp. entered into a binding letter of intent (LOI) with the private owners of the two mining concessions forming the 2,806 ha San Judas project in Sonora. The deal involves payments of US$50 K on signature of the definitive agreement, US$50 K on the first year, US$100 K on the second year, US$150 K on the third year, US$300 K on the fourth year and US$1.,03 M on the fifth year, all figures plus VAT.
  • Silver Bull Resources Inc. halted all work on the Sierra Mojada project in Coahuila due to a blockade by a cooperative of local miners called Sociedad Cooperativa de Exploración Minera Mineros Norteños, S.C.L.. The company has an agreement with the said cooperative on two mineral concessions in the eastern part of the Sierra Mojada project, under which they have the right of a 2% production royalty. Since 2014 the cooperative filed a suit fighting for payment of the royalty, notwithstanding the lack of production from the property. The cooperative also demands payments of wages for individuals that have not worked for the company, neither received employment commitments from Silver Bull. The cooperative has now illegally blockaded access to the project in an attempt to force a settlement before the final ruling. “Silver Bull is working with authorities to resolve the situation in a safe, fair, and timely manner”.
  • Fortuna Silver Mines Inc. announced the termination of the Pachuca SE property option agreement signed previously with Prospero Silver Corp. (San José, Oaxaca).
  • Millrock Resources Inc. entered definitive agreements to sell the La Union, Los Cuarentas, El Pima, El Valle, and Llano del Nogal claim blocks to Riverside Resources Inc., as well a copy of its exploration database and exploration vehicles also to Riverside. Consideration paid to Millrock is $35 K cash and 150 K Riverside shares, and a 0.5% NSR on the El Pima, El Valle and Santa Rosalia (conditional on this one) claims. “Millrock has retained the El Batamote copper porphyry project and this will be the sole focus of Millrock’s exploration effort in Mexico going forward” (Batamote, Sonora).
  • Santacruz Silver Mining Ltd. shareholders approved in its last annual general meeting held in October 1, 2019, the re-election of directors, the auditor of the company and the approval of the existing 10% rolling stock option plan. Also approved was the acquisition of the remaining 50% of the outstanding shares of PCG Mining S.A. de C.V. from a non-arm’s length party in consideration for the issue of 30 M common shares of the company. Upon completion of the transaction the company will own 100% of PCG, which is the parent holding company of Carrizal Mining, S.A. de C.V..

ON SOCIAL RESPONSIBILITY

  • No Relevant News.

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

On the image below: Sheeted quartz veining in metamorphic rocks from an orogenic gold project in Oaxaca. Picture by Jorge Cirett.

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

Quartz vein displaying lattice  bladed texture

By Miguel A Heredia

During the thirty-nine week of the year (September 23th to September 29th, 2019), at least 21 press releases were announced by companies working in Mexico, with seven informing on exploration results, six disclosing deals and corporate issues, three announcing financial rounds, two communicating production results, one reporting on resources and development of their projects, one commenting on Mexican issues, and one notifying on social responsibility.  ON MEXICO ISSUES, Los Gatos mine was inaugurated in San José del Sitio, Chihuahua with an investment of USD $366M.  ON EXPLORATION, In Baja California Norte, One World Lithium announced the continuation of the phase 3 drilling program at its Salar del Diablo project. In Sonora, Ridgestone released historical assays results from its Rebeico project. In Chihuahua, Kootenay reported drilling results from its Columba project.  In Durango, Canasil reported high grade sampling results from its Nora property. In Jalisco, GoGold released drill results from its Los Ricos project. In Veracruz, Mexican Gold announced 3,000m of drilling and its exploration plan for the remainder 2019 on its Las Minas project, and Azucar Minerals released drilling results from its El Cobre project. ON MINING, Mexus Gold provided an update on its Santa Elena mine in Sonora. Azure also provided an update on the first phase small-scale mining program at its Oposura project in Sonora. ON FINANCING, Aztec Minerals applied to the TSX to extend the term of 2,551,250 common share purchase warrants (Cervantes project, Sonora). Silver Viper closed a private placement for gross proceeds of $4M (La Virginia project, Sonora). Gold Resource declared its monthly dividend for September 2019 to shareholders (Arista mine, Oaxaca).  ON RESOURCES AND DEVELOPMENT, Prime informed that the company completed a formal visit to its Los Reyes property in Sinaloa, to attend meetings with local stakeholders, to secure surface access and begin site preparation, and to initiate exploration and engineering work for the planned production phase. ON DEALS AND CORPORATE ISSUES, Advance Gold announced that a geophysical adviser was added to its exploration team (Tabasquena project, Zacatecas). Colibri Resources entered into a property option agreement with Tocvan Ventures Corp., on its Pilar property in Sonora. Consolidated Zinc completed the acquisition of a 100% interest of the Plomosas mine in Chihuahua. Vizsla entered into a definitive share purchase agreement to acquire an option on the Panuco-Copala mining camp in Sinaloa. Ridgestone entered in an agreement to acquire a 100% interest in 10 mining concessions adjacent to its Rebeico project in Sonora. ON SOCIAL RESPONSIBILITY, Fortuna Silver, through its subsidiary Minera Cuzcatlán, has invested MXP $177.2M in social programs in Oaxaca, Mexico.

 ON MEXICO ISSUES

  • Los Gatos mine was inaugurated in San José del Sitio, Chihuahua. The governor of Chihuahua State, Javier Corral, participated in the inauguration of the Los Gatos mines, located in San Jose del Sitio, Chihuahua. The mine was built with an investment of USD$ 366M among the Japanese company Dowa Mining and the American Sunshine Silver Mining company, for an estimated daily production of 2,500 tons of ore, which will be processed in the same plant with state-of-the-art technology, to obtain concentrates of Ag, Pb, and Zn. Governor Javier Corral celebrated the alliance of Japanese and American capital that occupied 1,800 people in construction and will give permanent employment to another 510 on its operation.

ON EXPLORATION

  • One World Lithium, announced the continuation of the phase 3 drilling program at its Salar del Diablo project in Baja California Norte. The phase three will consists of 3 holes adjacent to previously partly drilled holes 1, 9, and 11, and 1 hole located 50km to the south, for a total of 2,400m. Each hole has planned depths of 600m. Each hole will be drilled with a mud rotary rig that will set casing to 200 meters and then core drilled to the planned total depth of 600 meters. Objectives of the drilling program are “to determine the presence of aquifers that may contain concentrations of lithium in brines at depth; to collect representative, depth-specific groundwater samples for chemical analysis of major elements, including Li; to obtain drill core samples for analysis for drainable porosity that will assist in resource estimations; and to use borehole lithologic descriptions to identify hydrogeologic units and the stratigraphy of the basin; to help calibrate existing and future geophysical surveys; and to create a hydrogeologic model to develop a potential future Li resource”.
  • Ridgestone Mining Inc., released historical assays results from its Rebeico project in Sonora. These assays are from rock chip samples obtained by the Servicio Geológico Mexicano (SGM) at El Cobre, Tres Hermanos, Amargosa I and II, La Amargosita, and Campo Seco old workings. At El Cobre, two samples taken on the vein reported 0.8 g/t Au, 39 g/t Ag, 1.67% Cu, and 0.12% Mo over 1.18m, and 0.7 g/t Au, 50 g/t Ag, 0.51% Cu, and 0.18% Mo over 1.12m. In addition, two dump samples returned 0.5 g/t Au, 102 g/t Ag, 2.41% Cu, and 0.30% Mo, and 0.35 g/t Au, 38 g/t Ag, 2.07% Cu, and 1.22% Mo. At Tres Hermanos, highlights include 14.6 g/t Au and 23 g/t Ag over 1.30m; 8.13 g/t Au and 17 g/t Ag over 1.20m; 3.4 g/t Au, 23 g/t Ag, and 0.14% Cu over 1.90m; and 1.4 g/t Au, 137 g/t Ag, and 2.72% Cu over 1.0m. At La Amargosa I and II, 10 g/t Au and 3.48% Cu over 0.7m; 5.86 g/t Au and 1.85% Cu over 0.68m; and 2.66 g/t Au and 0.55% Cu over 0.71m. At La Amargosita, 17 g/t Au, 73 g/t Ag, and 0.45% Cu over 1.30m and one dump sample with 0.1 g/t Au, 777 g/t Ag, and 1.56% Cu. At Campo Seco, 0.1 g/t Au, 18 g/t Ag and 7.49% Cu over 0.55m.
  • Kootenay Silver Inc., reported drilling results from three holes drilled on the F Vein and five holes drilled on the I Vein at its Columba project in Chihuahua. Significant drill intersections were encountered in hole CDH-19-011 with 133 g/t Ag, 0.04% Pb, and 0.15% Zn over 11.0m, including 245 g/t Ag, 0.13 g/t Au, 0.1% Pb, and 0.3% Zn over 5.0m, and including 648 g/t Ag, 0.63 g/t Au, 0.2% Pb, and 0.6% Zn over 1.0m, on the F Vein, and 228 g/t Ag, 0.1% Pb, and 0.6% Zn over 1.2m and 102 g/t Ag, and 0.1% Zn over 1.68m on the foot wall vein; in hole CDH-19-012 with 184 g/t Ag, 0.2 g/t Au, 0.1% Pb, and 0.4% Zn over 11.0m, including 476 g/t Ag, 0.66 g/t Au, 0.3% Pb, and 1% Zn over 3.15m, including 476 g/t Ag, 0.66 g/t Au, 0.3% Pb, and 1% Zn over 3.15m, and including 755 g/t Ag, 1.16 g/t Au, 0.5% Pb, and 1.7% Zn over 1.75m on the F Vein, and three intersections on the hanging wall of 113 g/t Ag, 0.1% Pb, and 0.1% Zn over 1.35m, 699 g/t Ag, 0.4% Pb, and 0.8% Zn over 2.1m, and 113 g/t Ag, 0.1% Pb, and 0.1% Zn over 0.6m; in hole CDH-19-013 with 273 g/t Ag, 0.1% Pb, and 0.2% Zn over 4.15m on I Vein, including 697 g/t Ag, 0.15% Pb, and 0.3% Zn over 0.65m, and 328 g/t Ag, 0.1% Pb, and 0.2% Zn over 2.65m; in hole  CDH-19-014 with 261 g/t Ag, 0.3% Pb, and 0.6% Zn over 5.01m on the I Vein, and 894 g/t Ag, and 0.4% Zn over 0.42m on the hanging wall; in hole CDH-19-015 with 1,005 g/t Ag, 0.4% Pb, and 0.7% Zn over 0.3m on the I Vein; and in hole CDH-29-016 with 357 g/t Ag on the I Vein. “Drilling continues at the property with a total of 24 holes completed to date and the program being expanded from 3000 meters to approximately 4500 meters. It is anticipated that a total of 35 to 40 holes will be completed by early November with assay results continuing into December”.
  • Canasil Resources Inc., reported high grade results from 21 surface samples taken along the Candy vein, 31 samples collected from adjacent country rocks, and 12 dump samples at its Nora project in Durango. The Candy vein, an epithermal Au-Ag target, has not been previously drilled. There has been limited, historical mining of the Candy vein, and small mineralized waste dumps are present. Average of the 21 samples collected along the Candy vein is 1.69 g/t Au, 140 g/t Ag, 0.4% Cu, 1.6% Pb, and 0.6% Zn over 0.68m, with the highest Au value of 12.55 g/t Au, 12 g/t Ag, 1% Cu, 2.7% Pb, and 0.7% Zn over 0.40m, and the highest Ag value of 605 g/t Ag, 3.72 g/t Au, 0.97% Cu, 1.2% Pb, and 0.4% Zn over 1.0m. The average grade of the 12 dump samples is 1.40 g/t Au, 86 g/t Ag, 1.1% Cu, 3.4% Pb, and 1.6% Zn. These results will be interpreted to identify possible locations for subsequent drilling.
  • GoGold Resources Inc., released drilling results of four new holes drilled at Los Ricos Main Area and three new holes drilled at San Juan Area from its Los Ricos project in Jalisco. Significant drill intersections at Los Ricos Main Area were encountered in hole LRGG-19-038 with 0.72 g/t Au and 165 g/t Ag (2.92 g/t AuEq) over 21.2m, including 1.33 g/t Au and 302 g/t Ag (5.36 g/t AuEq); in hole LRGG-19-040 with 0.4 g/t Au and 115 g/t Ag (1.93 g/t AuEq) over 17.5m, including 0.89 g/t Au and 281 g/t Ag (4.64 g/t AuEq) over 4.5m; in hole LRRGG-19-041 with 1.14 g/t Au and 115 g/t Ag (2.68 g/t AuEq) over 23.3 m, including 4.6 g/t Au and 398 g/t Ag (9.91 g/t AuEq) over 5.5m; and in hole LRGG-19-042 with 0.47 g/t Au and 69 g/t Ag (1.40 g/t AuEq) over 29.2m, including 1.65 g/t Au and 224 g/t Ag (4.63 g/t AuEq) over 6.7m. At San Juan Area, the most significant drill intersections were encountered in hole LRGG-19-045 with 0.59 g/t Au and 34 g/t Ag (1.04 g/t AuEq) over 20m, including 2.92 g/t Au and 91 g/t Ag (4.123 g/t AuEq) over 3.5m; and in hole LRGG-19-046 with 0.36 g/t Au and 62 g/t Ag (1.19 g/t AuEq) over 36m, including 1.3 g/t Au and 220 g/t Ag (4.24 g/t AuEq) over 5.5m.
  • Mexican Gold Corp., announced an aggressive exploration plan for the remainder of 2019 at its Las Minas project in Veracruz, including a drill program of 3,000m. The company plans to drill test the Pueblo Nuevo, Cinco Señores TEM anomaly, Las Minillas, and El Dorado targets, and test the conceptual targets of Sub-Sill and the Mancuerna Dike Swarm for potential skarn mineralization.
  • Azucar Minerals Ltd., reported results from its ongoing drilling program at its El Cobre project in Veracruz at Norte, Villa Rica, Porvenir and Suegro targets. The most significant intervals were encountered at the Norte Target, where the hole EC-19-077 intersected 0.26 g/t Au and 0.11% Cu over 43.50m, including 0.53 g/t Au and 0.21% Cu and the hole EC-19-082 intersected 0.25 g/t Au and 0.12% Cu over 237.30m, including 0.63 g/t Au and 0.27% Cu over 44.45m, and another interval of 1.01 g/t Au and 0.33% Cu over 12.75m. At El Porvenir target, hole EC-19-078 intersected 82 g/t Au and 0.02% Cu over 12m, including 20.6 g/t Au and 0.01% Cu over 1.0m.

ON MINING

  • Mexus Gold US, provided an update on its Santa Elena mine in Sonora. The compnay informed that all systems are working properly but the Merrill Crow Au recovery plant currently in use is running at 30 gpm and producing 3Oz Au per day. Mexus is moving a new plant to Santa Elena which will have the capacity to run up to 500 gpm. This new equipment is expected to be operational in October, which allows the company to reach its long term production goal.
  • Azure Minerals Limited provided an update on the first phase small-scale mining program at its Oposura project in Sonora. Azure extracted and stockpiled an estimate of 6,100 tons of 13.4% Zn and 10.7% Pb from open pit, including 2,100 tonnes of 24% Zn and 18.3% Pb. Tonnages and grades exceed significantly the mineral resource estimate for this part of the deposit. Ore processing will start in the December quarter and will continue for 2-3 months. “Azure will produce separate Zn and Pb-Ag concentrates and expects to sell them on the spot market to locally-based metals traders or smelters, several of which have expressed strong interest in these products”.

ON FINANCING

  • Aztec Minerals Corp., applied to TSX to extend the term of an aggregate of 2,551,250 common share purchase warrants by one year from October 21, 2019 to October 21, 2020. “Each warrant entitles the holder to acquire one common share in the capital of the company at an exercise price of $0.25 per common share until the current expiry date of October 21, 2019. An aggregate of 23,750 warrants have been exercised to date and 550K warrants are held, directly or indirectly, by insiders of the company. The extension of the term of the warrants for an additional year is subject to the acceptance of TSX” (Cervantes project, Sonora).
  • Silver Viper Minerals Corp., closed a private placement for gross proceeds of $4M. Net proceeds will be used to continue exploration and development of its la Virginia project in Sonora, and for general corporate and working capital purposes.
  • Gold Resource Corporation, declared its monthly dividend of 1/6 of a cent per common share for September 2019, payable in October 23, 2019 to their shareholders (Arista mine, Oaxaca).

ON RESOURCES AND DEVELOPMENT

  • Prime Mining Corp., informed that the company completed a formal visit to its Los Reyes property in Sinaloa, to attend meetings with local stakeholders, to secure surface access and begin site preparation and to initiate exploration and engineering work for the planned production phase. The company has initiated a 5,000m trenching and surface sampling program on mineralized structures to provide valuable assay data to be used in conjunction with down drill data to update resource estimation. “The current trenching program will provide greater confidence in the conversion of these blocks to indicated resources for the upcoming resource estimate”.

ON DEALS AND CORPORATE ISSUES

  • Advance Gold Corp., announced that a geophysical adviser with over 40 years of international mining exploration experience was added to its exploration team (Tabasquena project, Zacatecas).
  • Colibri Resources Corporation, entered into a property option agreement with Tocvan Venture Corp., on its 100% owned Pilar project in Sonora. Tocvan has been granted a 60 days exclusivity period to complete a due diligence by paying Colibri $25K. If the due diligence is positive and Tocvan decide to continue the option agreement, it will have the option to earn 51% of the property over a 5 years period by issuing 2M common shares, paying CAD $100K to Colibri, 60 days after signing the final agreement, and performing CAD $250K of exploration expenditures at Pilar property during the first year. On year 2, Tocvan will pay CAD $ 50K to Colibri and will perform CAD $350K of exploration expenditures. On year 3, Tocvan will pay CAD $75K and issue 1M common shares to Colibri, and perform CAD $400K of exploration expenditures. On year 4, Tocvan will pay CAD $75K and issue 1M common shares to Colibri, and perform CAD $500K of exploration expenditures. On year 5, Tocvan will pay CAD $75K and issue 1M common shares to Colibri, and perform CAD $500k of exploration expenditures. Upon completion of these terms Tocvan will be granted a 6 month option to purchase the remaining 49% of Pilar in exchange for CAD $2M and a 2% NSR on the project, of which 1% could be sold by Colibri for a price of CAD $1M. Tocvan will operate the project during the option period.
  • Consolidated Zinc Limited, completed the acquisition of a 100% interest of the Plomosas mine in Chihuahua by acquiring the remaining 10% interest from Retec Guaru S.A. de C.V.
  • Vizsla Resources Corp., entered in a definitive share purchase agreement to acquire an option over the consolidated mineral rights, infrastructure and processing facilities comprising the large scale Panuco-Copala mining camp in Sinaloa. Vizsla has agreed to acquire all of the outstanding shares of Canam Alpine Ventures Ltd. Vizsla will acquire Canam for a total staged consideration of 18M common shares of Vizsla by issue 6M common shares on closing of the acquisition, 6.5M common shares upon definition of a resource greater than 200K Oz AuEq, and 5.5M common shares upon exercise of the option. Also, Vizsla will pay USD $700K on signing, USD $450K in the first anniversary of signing, USD $5,184,500 and work commitment of USD $3,423,000 in the second anniversary of signing, USD $6,846,000 in the third anniversary of signing, USD $8,557,500 in the fourth anniversary of signing, USD $9,269,000 in the fifth anniversary of signing, and USD $11,907,425 in the sixth anniversary of signing.
  • Ridgestone Mining Inc., entered in an agreement to purchase a 100% interest in 10 mining concessions adjacent to its Rebeico project in Sonora. These 10 mining concessions cover an area of 3,292 hectares and contain numerous artisanal old workings and mineralized outcrops. Terms of the acquisition include a cash payment of USD $83K and the issuance of 5M common shares of Ridgestone to the vendor.

ON SOCIAL RESPONSIBILITY

  • Fortuna Silver Mines Inc., through its subsidiary Minera Cuzcatlán has invested MXP $172.2M in San Jose del Progreso, Oaxaca and surrounding communities, since it started operations in 2011. One of the most outstanding projects to date is the breeding and fattening of lambs in the community of El Cuajilote. This has been successfully promoted by Compañía Minera Cuzcatlán since 2016. The company contributes with inputs and technical advice, while producers provide labor. Additionally, the suppliers of inputs are 100% local, also benefiting companies in the region. Currently 70% of 400 square meters of productive infrastructure have been installed. The amount of sheep bellies, of a target of 90, has been increased by 45% by keeping them in the feeding and reproduction program. Likewise, the percentage of births has increased from 80% to 125%. In this way, Compañía Minera Cuzcatlán makes a difference for families benefiting from this and other programs, since they receive financial support by providing inputs for food by the company and training according to the productive or reproductive season.

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 vein with stibnite and displaying lattice  bladed texture in a prospect in San Luis Potosi, Mexico.  Photo by Miguel A Heredia.

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

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During the 38th week of the year (September 16th to September 22nd, 2019), at least 20 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, Peñasquito in Zacatecas is again victim of an illegal blockade, operations are suspended by Newmont Goldcorp. ON EXPLORATION, in Zacatecas, Advance Gold is to carry a second phase geophysical survey on its Tabasquena project. in Jalisco, Silver Spruce announced the approval of the permits for drilling Cocula. In Hidalgo, Prospero Silver informed on drilling results from its Pachuca SE project. ON MINING, a renewed illegal blockade strikes Newmont Goldcorp’s Peñaquito mine, in Zacatecas. Starcore released first quarter 2019 results. Consolidated Zinc filed first semester 2019 results. Mexus Gold realized the first gold sale from it Santa Elena mine in Sonora. ON FINANCING, Newmont Goldcorp completed a senior notes offering for $690 M. San Marco Resources is consolidating its share base on a 3 to 1 basis. Defiance Silver is settling a debt by issuing shares. Sierra Metals amended the number of shares to re-purchase. VVC Exploration extends the closing of its private placement financing for up to CA$2.5 M. Galore Resources announced the extension of the current non-brokered private placement intended to raise $1.5 M. ON RESOURCES AND DEVELOPMENT, Leagold commenced a large multi-year exploration program on eight linear kilometres of the southern portion of the Bermejal intrusive stock. ON DEALS AND CORPORATE ISSUES, Azure Minerals won a dispute on the recovery of a significant amount of VAT. Silver Spruce is to continue the due diligence on the Cocula project in Jalisco. Magna Gold completed the acquisition of Las Marias and Las Cabañas properties, adjacent the former and 10 km SW the latter from its Mercedes project in Sonora. ON SOCIAL RESPONSIBILITY. Alamos Gold received an award on community responsibility by three organizations for work on the Mulatos community, in Sonora.

ON MEXICO ISSUES

  • A new illegal blockade on Peñasquito, Zacatecas, forces Newmont Goldcorp to suspend operations. The blockade that was set on September 14, 2019, is backed by the Zacatecan senator José Narro, from the ruling party Morena.

ON EXPLORATION

  • Silver Spruce Resources Inc. announced the approval of the Informe Preventivo on  the Cocula project in Jalisco, which is the environmental application required for drilling. The permit allows for 47 drill sites over the 750 m strike length of the known mineralised area.
  • Advance Gold Corp. informed that a second phase geophysical survey will be carried out at its Tabasquena project in Zacatecas. The first phase 3D induced polarisation survey identified a “a significant continuous chargeability anomaly, with an east-west width of approximately 250 metres and an apparent strike length of over 800 metres” directly below the Tabasquena vein, which saw previous production under the company Peñoles.
  • Prospero Silver Corp. posted results from holes drilled in 2019 on its Pachuca SE project, funded by partner Fortuna Silver Mines Inc. The 5,933 m diamond drilling in eight holes produced highlighted intervals of 0.78 m @ 0.02 gpt Au, 83 gpt Ag; 1.50 m @ 0.28 gpt Au, 46 gpt Ag; 0.40 m @ 0.49 gpt Au, 23 gpt Ag; 0.35 m @ 1.69 gpt Au, 675 gpt Ag; 1.80 m @ 0.58 gpt Au, 144 gpt Ag. Prospero suggests this indicates a district wide preserved epithermal mineralized zone, with fluid inclusion and mineralogical data pointing to the top of the mineralised zone 200 m below the actual surface, and the paleo-water table 100 m above the top of the Varal ridge.

ON MINING

  • Newmont Goldcorp Corp. Informed “that the dialogue sponsored by the government of Mexico to resolve issues with a trucking contractor and the San Juan de Cedros community (one of Peñasquito’s 25 neighboring communities) has been suspended and that an illegal blockade has resumed”. The company has enhanced water availability to neighbouring communities through a number of projects over the years, and proposed several additional measures for the communities in general and for San Juan de Cedros in particular, on the most recent government sponsored talks with the protesters.
  • Starcore International Mines Ltd. filed the results for the first quarter, ended July 31, 2019. During the period the company milled 60.8 K tonnes @ 1.99 gpt Au, 31.7 gpt Ag, recovering 85.1% Au, 58.4% Ag, to produce 3,711 Oz AuEq at its San Martin mine in Queretaro. The mine operating cash cost was US$1,234 per AuEq Oz and the AISC US$1,452 per AuEq Oz.
  • Mexus Gold US. sold its first gold, produced at its Santa Elena mine in Sonora (not to mistake for First Majestic’s Santa Elena mine, also in Sonora).
  • Consolidated Zinc Ltd. released its first semester 2019 interim report. During the period 27.1 K tonnes of ore @ 13.1% Zn, 4.1%Pb were mined from its Plomosas mine in Chihuahua, while extracting also 14 K tonnes of waste and driving 1,192 m of underground development. By the end of the period the company had total assets of US$4.3 M, total liabilities for US$5.2 M and total cash US$0.2 M, with US$2.1 M of debt.

ON FINANCING

  • Newmont Goldcorp Corp. closed a senior notes offering at 2.8% netting $690 M of gross proceeds. The Company intends to use the net proceeds of this offering for repayment of the outstanding 5.125% senior notes due October 1, 2019 (Peñasquito, Zacatecas).
  • San Marco Resources Inc. is consolidating its shares on a 3 to 1 basis. Once the consolidation process is complete, the company will have 22.6 M issued and outstanding shares (Chunibas, Sonora).
  • Defiance Silver Corp. intends to settle up to $150 K of debt issuing up to 535 K common shares. The issuance of the shares is subject to approval by the TSX, as some of the creditors are insiders of the company, and the settlement is considered a related party transaction (San Acacio, Zacatecas).
  • Sierra Metals Inc. announced an amendment to the number of shares the company can repurchase, from 1.5 M to 2.5 M shares, or approximately 1.54% of the issued and outstanding shares of the company (Bolivar, Chihuahua).
  • VVC Exploration Corp. announces the extended closing of its private placement financing under which expects to accrue up to CA$2.5 M. A finder’s fee not exceeding 7% of the aggregate amount raised is to be paid. In conjunction with the private placement, VVC also will be converting up to $200 K of its indebtedness to units of the company (Kaity, Chihuahua).
  • Galore Resources Inc. announced that the previously announced non-brokered private placement financing intended to raise up to $1.5 M has been extended under conditional acceptance by the TSX, as the company is continuing to collect subscriptions from investors. The company plans to submit documentation and announce a closing on a first tranche of the financing in the next few days, before following up on completing and closing on a second tranche in the next 30 days (El Alamo, Zacatecas).

ON RESOURCES AND DEVELOPMENT

  • Leagold Mining Corp. commenced a large multi-year exploration program on the southern portion of the Bermejal intrusive at its Los Filos mine complex in Mexico. Eight linear kilometres of favourable contacts between the intrusive and the hosting sedimentary rocks are to be explored, compared with the already explored four linear kilometres that have yielded past production and actual resources reaching 6 M Oz Au on the Bermejal intrusion. The first phase will include surface geochemistry, geophysics, mapping, trenching and up to 10,000 m of drilling in 48 holes. Known prospects of interest include El Carmen, where up to 14.5 m @ 8.1 gpt Au and 12.8 m @ 12.8 gpt Au.

ON DEALS AND CORPORATE ISSUES

  • Azure Minerals Ltd. announced a dispute over the recovery of IVA (Mexican equivalent to GST) has been finalised with the Mexican authorities, resulting in the payment of Mx$10.33 M or AU$767 K. This payment results from a court ruling over IVA paid in 2016, reimbursed with interests (Mesa de Plata, Sonora).
  • Silver Spruce Resources Inc. announced its intention to continue the due diligence to support a definitive purchase decision of the Cocula project in Jalisco, subject to its binding letter of agreement with ProDeMin S.A. de C.V.
  • Magna Gold Corp. announced that it has completed the acquisition of the Las Marias property and Las Cabañas mineral claim in Sonora. Las Marias property consists of seven mining concessions covering 646 ha adjacent to the Mercedes property, and Las Cabañas consists of two claims covering 248 ha approximately 10 km SW of the Mercedes property. The total purchase price for the new mineral concessions and other rights was $250 K and the issuance of 1 M common shares.

ON SOCIAL RESPONSIBILITY

  • Alamos Gold Inc. was named the Best Corporate Social Responsibility Practice 2019 in the category of Connecting with the Community. The award was bestowed by the Mexican Center for Philanthropy (Cemefi), the Alliance for Corporate Social Responsibility in Mexico (AliaRSE), and Forum Empresa (Mulatos, 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: Strong iron oxides on a quartz vein from an orogenic gold project in Oaxaca. Picture by Jorge Cirett.

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

IMG_0970aBy Jorge Cirett

During the 36th week of the year (September 2nd to September 8th, 2019), at least 20 press releases were announced by companies working in Mexico. ON MEXICO ISSUES Karen Flores Arredondo was appointed General Director of CAMIMEX. VVC Exploration is searching for financing to start operations at Samalayuca.  ON EXPLORATION, in Baja California, One World Lithium is to conduct a field visit to its Salar del Diablo project. In Sonora, Minera Alamos announced the discovery of a new target, Gold Ridge. In Chihuahua, Ethos Gold released results on 16 RC holes at the Purisima project. In Coahuila, Prize Mining released assay results of several targets on a 20 km long trend. In Zacatecas, Galore received assays for the first two holes at El Alamo target of its Dos Santos project; Advance Gold completed an IP survey at the Tabasqueña project; Alien Metals released exploration results at San Celso, Los Campos and Donovan 2. ON MINING, Argonaut Gold completed a fourth water well, and now has the capacity to sustain production at 30 K tonnes a day at San Agustin, Zacatecas. ON FINANCING, Mexican Gold granted 650 K stock options. Defiant Silver seeks to extend the expiry date of some warrants. SilverCrest Metals granted options for 975 K shares. Telson Mining received conditional approval for a US$12 M loan. Southern Silver Corp.  closed the final tranche of financing for gross proceeds of $1.1 M. Silver Viper intends to raise up to $3.0 M through a private placement financing round. ON RESOURCES AND DEVELOPMENT, GoGold released results for four more holes at its Los Ricos project in Jalisco. Pan American Silver reported all-inclusive reserves and resources of 203.3 M Oz Ag, 2.16 M Oz Au on its La Colorada, Dolores and La Bolsa properties. Minera Alamos received one more permit to start construction at its Santana project in Sonora. Goldplay Exploration released underground channel sampling results from San Marcial, Sinaloa. ON DEALS AND CORPORATE ISSUES, Mexican Gold Corp. appointed new directors and announced an incoming new resource estimate for Las Minas, Veracruz. Consolidated Zinc acquired the remaining 10% of the Plomosas mine rights to gain a 100% interest. The company also announced a favourable court ruling on a land use agreement for the Plomosas mine.   ON SOCIAL RESPONSIBILITY. No relevant news.

ON MEXICO ISSUES

  • The sectional president from Samalayuca, Chihuahua, Javier Melendez Cardona, was interviewed on the coming mining investment on La Gloria by VVC Exploration Corp. He explained the project is in the financing stage of a process that is to greatly benefit the local communities.
  • Karen Flores Arredondo is appointed CAMIMEX’s (Cámara Minera de México) General Director as of September 15, 2019. Flores Arredondo has recently worked for Agnico Eagle in Mexico, and has held posts with other private enterprises and government agencies related to the Mining Industry.

ON EXPLORATION

  • Prize Mining Corp. released assay results from surface sampling at its Manto Negro project in Coahuila. The sampling on the Apache, San Jose and Las Curvas concessions returned up to 1.3 m @ 3.86% Cu, 44 gpt Ag; 1.2 m @ 2.62% Cu, 58 gpt Ag; 1.8 m @ 2.31% Cu, 28 gpt Ag and six chip samples running 7.7% to 29.3% Cu and 190 to 759 gpt Ag. At San Jose a best sample interval of 1.8 m @ 2.3% Cu, 28 gpt Ag and up to 17.1% Cu and 1,689 gpt Ag from dumps. At Las Curvas the best mineralised interval was 2 m @ 2.5% Cu, 33 gpt Ag and up to 23% Cu, 710 gpt Ag from dumps. Prize is pursuing a mineralised horizon over 20 km in length in the Formation San Marcos red-bed sandstone below the Cupido Formation limestone.
  • Ethos Gold Corp. released results of the completed 16 reverse circulation (RC) drill campaign at its Purisima project in Chihuahua. At the site Ethos targeted shallow gold mineralisation in epithermal banded quartz veining and associated silicification and stockworks. Highlighted results include 3.05 m @ 0.76 gpt Au; 7.62 m @ 0.52 gpt Au; 9.14 m @ 0.43 gpt Au, 14 gpt Ag; 6.10 m @ 0.40 gpt Au, 9 gpt Ag; 15.24 m @ 0.50 gpt Au; 6.10 m @ 0.50 gpt Au. Ethos decided to terminate the Purisima option agreements.
  • Galore Resources Inc. received assays for the first two core holes at El Alamo target, part of its Dos Santos project in Zacatecas. Highlighted results comprise 3.40 m @ 3.46 gpt Au, 3 gpt Ag (including 1.20 m @ 8.89 gpt Au); 10.90 m @ 14 gpt Ag (including 1.0 m @ 88 gpt Ag); 9.15 m @ 2.02 gpt Au, 5 gpt Ag. The results also define intervals tens of meters in width with anomalous silver in the 1-10 ppm range. Galore informs these results, along with some other tracer elements, support the view that this is the upper part of an epithermal system.
  • Minera Alamos Inc. announced the identification of Gold Ridge, a new mineralised zone on its Santana property in Sonora. One third of 147 rock samples collected exhibit grades >0.10 gpt Au, ranging from 0.1 gpt to 3.6 gpt Au and 5 gpt Ag to 669 gpt Ag, with the mineralised surface covering an area of 1,000 m x 200 m located 2-3 km from the currently planned heap leach operations at Santana.
  • Advance Gold Corp. completed a 3D induced polarization (IP) geophysical survey on its Tabaqueña project in Zacatecas. The 9.6 line kilometre survey highlighted a 250 wide by 800 m long continuous chargeability anomaly.
  • One World Lithium Inc. announced the visit of Mike Rosko of Montgomery & Associates to the Salar del Diablo project in Baja California, along with the president and director of OWL. The visit is to include previous and proposed drill site locations as well as surface geological features.
  • Alien Metals Ltd. released results from recent exploration at its San Celso, Los Campos and Donovan 2 projects in Zacatecas. At San Celso, further assays include 18 anomalous samples averaging 272 gpt Ag, with a high of 1,275 gpt Ag. At Los Campos, 14 anomalous samples averaged 185 gpt Ag, with a peak of 547 gpt Ag. At Donovan 2, a sample returned 2.68 gpt Au.

ON MINING

  • Argonaut Gold Inc. completed the fourth water well at its San Agustin operation in Durango. The new well demonstrated sufficient water capacity to meet the needs of the operation to run at 30 K tonnes per day of ore, which is planned for the fourth quarter of 2019.

ON FINANCING

  • Mexican Gold Corp. granted 650 K stock options to an officer and an employee of the company (Las Minas, Veracruz).
  • Defiant Silver Corp. intends to seek TSX Venture Exchange approval to extend the expiry date of 6.19 M warrants, previously issued, by one year (San Acacio, Zacatecas).
  • SilverCrest Metals Inc. granted stock options for 975 K shares to directors, officers, employees and consultants of the company (Las Chispas, Sonora).
  • Telson Mining Corp. received conditional approval for a US$12 M medium term loan from an international investment bank to finalize construction at Tahuehueto, Durango.
  • Southern Silver Exploration Corp. closed the final tranche of the previously announced private placement, for gross proceeds of $1.1 M. In total the company closed two tranches for gross proceeds of $4.2 M (Cerro Las Minitas, Durango).
  • Silver Viper Minerals Corp. intends to overtake a private placement financing to raise gross proceeds of up to $3.0 M (La Virginia, Sonora).

ON RESOURCES AND DEVELOPMENT

  • GoGold Resources Inc. released results for three more diamond drill holes at Los Ricos main area and the first hole drilled at the San Juan target of its Los Ricos project in Jalisco. Highlighted drill core intervals comprise 6.2 m @ 1.17 gpt Au, 158 gpt Ag; 15.5 m @ 0.53 gpt Au, 84 gpt Ag (including 2.7 m @ 2.04 gpt Au, 217 gpt Ag); 17.1 m @ 1.59 gpt Au, 364 gpt Ag (including 5.6 m @ 3.81 gpt Au, 818 gpt Ag) at Los Ricos and 16.9 m @ 0.54 gpt Au, 68 gpt Ag (including 5.0 m @ 1.46 gpt Au, 148 gpt Ag) at the San Juan target.
  • Pan American Silver Corp. reported mineral reserves of 557 M Oz Ag, 5.1 M Oz Au, of which 141.6 M Oz Ag and 1.58 M Oz Au are in its three properties in Mexico: La Colorada, Dolores and La Bolsa. Reserves and resources all inclusive comprise 148.3 M Oz Ag, 129.8 K Oz Au at La Colorada in Zacatecas, 45.4 M Oz Ag, 1,383.5 K Oz Au at Dolores in Chihuahua and 9.6 M Oz Ag, 651.7 K Oz Au at La Bolsa in Sonora.Pan American Silver Reserves1
  • Minera Alamos Inc. received the ETJ (Estudio Tecnico Justificativo) for the Santana Gold project in Sonora. Combined with the previously approved MIA (Manifiesto de Impacto Ambiental) the company holds all the necessary rights to initiate construction of commercial scale operations at Santana.
  • Goldplay Exploration Ltd. released results from underground channel sampling in a re-opened old adit at the Faisanes target of its San Marcial project in Sinaloa. A zone of 11 m @ 155 gpt includes 6 m @ 232 gpt Ag, ending in mineralisation at the deepest sampled point within the tunnel. “The Company is reviewing plans to extend the tunnel beyond this high-grade Interval”.

ON DEALS AND CORPORATE ISSUES

  • Mexican Gold Corp. announced the appointment of Matt Liard as Vice President Exploration, Sonny Bernales as Senior Geologist and Michael Kanevsky as CFO. The company outsourced an updated 43-101 resource estimate with an underground cut-off grade, that should be released in October 2019 (Las Minas, Veracruz).
  • Consolidated Zinc Ltd. entered into a binding agreement with Retec Guaru S.A. de C.V. under which CZC is to acquire the remaining 10% interest in the Plomosas mine in Chihuahua. “The purchase consideration for the acquisition of the Retec interest in MLAZ is a 1% Net Smelter Return Royalty (the “Royalty”) from the sale of zinc and lead concentrates produced from Plomosas”. Completion of the agreement is expected by 30 September 2019.
  • Consolidated Zinc Ltd. announced that the Appeals Court of Chihuahua ruled in favour of the company’s subsidiary regarding a dispute over a land use agreement with a local rancher in place for its Plomosas mine in Chihuahua.

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 veinlet on an orogenic gold project in Oaxaca. Picture by Jorge Cirett

IMG_0970a

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

 

Flow -banded rhyolite

By Miguel A Heredia

During the thirty-five week of the year (July 26th to September 1st, 2019), at least 22 press releases were announced by companies working in Mexico, with seven disclosing deals and corporate issues, six announcing financial rounds, four communicating production results, three reporting on resources and development of their projects, and two informing on exploration results.  ON MEXICO ISSUES, no relevant news.  ON EXPLORATION, In Chihuahua, Kootenay reported drilling results from four holes drilled at its Columba project. In Jalisco, GoGold reported drilling results from ten new holes drilled at its Los Ricos project. ON MINING, Argonaut extended El Castillo mine life with zero-cost collar gold price protection program. Mexus Gold commenced leaching of 5K tonnes of mineralized material at its Santa Elena mine in Sonora.  Telson processed 2,166 tonnes of concentrates from its Tahuehueto project in Durango and announced significant metallurgical recoveries. Santacruz reported Q2, 2019 production and financial results from their Mexican operations.  ON FINANCING, Excellon completed an $11.5M bought deal financing (La Platosa mine, Durango). First Mexican Gold announced consolidation and private placement for gross proceeds of $0.5M (Guadalupe property, Sonora). Sable announced a strategic investment with Osisko Gold Royalty for potential proceeds of $12.58M (Margarita project, Chihuahua). Silver Spruce closed a private placement for gross proceeds of $261,250 (Pino de Plata project, Chihuahua). New Gold closed a bought deal financing for gross proceeds of CDN $150M (Cerro San Pedro mine, San Luis Potosi).  Gold Resource declared monthly dividend to shareholders (Arista deposit, Oaxaca). ON RESOURCES AND DEVELOPMENT, Santacruz updated mineral resource estimate at its Veta Grande project in Zacatecas. Impact Silver reported results of the successful dense media separation (DMS) study at its Capire project in Mexico State. SilverCrest released in-fill drilling results from its Las Chispas project in Sonora.  ON DEALS AND CORPORATE ISSUES, Prize Mining reported results from its annual general meeting of shareholders (Manto Negro project, Coahuila). SilverCrest announced that the company will begin trading on TSX (Las Chispas project, Sonora).  Golden Minerals received continued listing standard notice from New York Stock Exchange (Santa María project, Chihuahua). Azure revealed that it has regained 100% of the Alacran Au-Ag project from Teck. Consolidated Zinc announced that the Federal Court of Mexico has ruled in its favour on the land use agreement dispute with the landowner. Minera Alamos announced the closing of the Guadalupe de los Reyes option and the acquisition of common shares of Prime Mining. Newmont Goldcorp announced successful completion of consent solicitation for its 5.875% notes due 2035 (Peñasquito mine, Zacatecas).  ON SOCIAL RESPONSIBILITY, no relevant news.

 ON MEXICO ISSUES

  • No relevant news

ON EXPLORATION

  • Kootenay Silver Inc., released drilling results from four new holes drilled at its Columba project in Chihuahua. Significant drill intersections were encountered in hole CDH-19-009 with 516 g/t Ag and 0.2% Zn over 2.90m, including 1,070 g/t Ag and 0.4% Zn over 0.90m; hole CDH-19-008 with 112 g/t Ag over 33.5m, including 408 g/t Ag, 0.7% Pb, and 1.1% Zn over 4.85m; and hole CDH-19-007 with 417 g/t Ag and 0.1% Zn over 1.68m and other interval of 693 g/t Ag, 0.4% Pb, and 1.13% Zn over 1.55m. The ongoing drilling program has showed that the F vein has returned high grades over good widths, the known veins have excellent continuity along strike and to depth, and the newly discovered veins in the hanging wall also contain high grades. Kootenay has drilled 16 holes to date of a planned first phase 25-30 holes program.
  • GoGold Resources Inc., announced drilling results from ten new holes drilled at its Los Ricos project in Jalisco: three at the Los Ricos main area and seven on the Cerro Colorado target located 1.5Km to the south of the main area. The most significant drill intersections were encountered in hole LRGG-19-028 located at the Los Ricos main area, with 1.21 g/t Au and 133 g/t Ag (2.99 g/t AuEq) over 27.5m, including 2.93 g/t Au and 294 g/t Ag (6.85 g/t AuEq) over 11m, and on the Cerro Colorado target in hole LRGC-19-004 with 1.28 g/t Au and 107 g/t Ag (2.71 g/t AuEq) over 11.5m. The drilling program has now been expanded for additional testing along 3.2Km of the Los Ricos mineralized zone while at the Cerro Colorado target it has showed that the quartz vein system has good grades over a strike length of at least 500m.

ON MINING

  • Argonaut Gold Inc., extended El Castillo mine life as it entered into a series of zero-cost collar option contracts. The contracts cover 145K Oz Au through mid-2022. The floor price of the monthly gold collars has been set at $1,450/Oz with the ceiling price of the collars ranging from $1,630/Oz in Q4, 2019 to $1,760/Oz for H1, 2022.
  • Mexus Gold US, commenced leaching of 5K tonnes of ore material at its Santa Elena mine in Sonora, and expects to recover from 5 to 8 Oz Au per day. The ore material has been tested and is returning values as high as 54.74 g/t Au.
  • Telson Mining Corporation, processed 2,166 tonnes of concentrate with average grades of 5.32 g/t Au, 38 g/t Ag, 1.7% Pb, 3.2% Zn, and 0.24% Cu from its Tahuehueto project in Durango, to produce 82.9 tonnes of Au rich Pb concentrate grading 101 g/t Au, 702 g/t Ag, 38.8% Pb, and 5.29%Cu, and 130.8 tonnes of Zn concentrate grading 40.8% Zn, 12.02 g/t Au, and 94 g/t Ag. Telson has achieved the highest recoveries to date at 86% Au, 85% Ag, 86% Pb, 77% Zn, and 84% Cu.
  • Santacruz Silver Mining Ltd., reported Q2, 2019 production and financial results from their Mexican operation in Zacatecas and San Luis Potosi. Consolidated mining operations generated a gross profit of $251, including gross profit from Rosario mine in San Luis Potosi of $54, and gross loss from Veta Grande mine in Zacatecas of $691 plus mine services gross profit of $888. Net loss after taxes was $1,137, cash cost per Oz AgEq of $16.07 and an AISC of $18.37. Santacruz processed 37,156 tonnes at Veta Grande to produce 240.2K Oz AgEq, at a cash cost of $17.68 per Oz AgEq produced and an AISC of $19.70 per Oz AgEq. At El Rosario, it processed 20.789 tonnes to produce 133.1K Oz AgEq at a cash cost of $14.23 per Oz AgEq produced and an AISC of $16.81 per Oz AgEq.

ON FINANCING

  • Excellon Resources Inc., completed its previously announced bought deal offering for $11.5M. Gross proceeds will be used to fund exploration and capital expenditures at its Platosa project in Durango, and its Evolution project in Zacatecas. In connection with the offering, insiders purchased an aggregate of 1,015,000 units for a total consideration of $1M.
  • First Mexican Gold Corp., announced consolidation of its common shares on a ten for one basis, and proposes to close a private placement for gross proceeds of $0.5M. The closing of the offering is anticipated to take place on or about September 30, 2019, or such other later date as the Company may agree (Guadalupe project, Sonora).
  • Sable Resources Ltd., announced a strategic investment with Osisko Gold Royalty for potential proceeds of $12.58M. This financing will provide Sable with the funding to progress its exploration objectives over its entire portfolio for the next 4 years. In connection with the financing, Osisko will have a right of first refusal over any royalty, stream or similar right in Sable properties, equity participation right to maintain pro-rata ownership interest so long as Osisko owns more than 5% of the outstanding common shares of Sable, and the right to nominate one person to Sable´s board of directors so long as Osisko owns more than 5% of the outstanding common shares of Sable. Additionally, Sable granted Osisko the right to acquire 1% NSR on properties controlled by Sable´s wholly subsidiaries in Mexico for $5M. The NSR will extend to any additional properties acquired by Sable within a period of 4 years from the closing of the NSR agreement. Sable also has granted Osisko the right to acquire an additional 1% NSR for $5.5M on all minerals produced from initial and future properties control by Sable until the expiration of the NSR agreement (Margarita and Vinata projects, Chihuahua).
  • Silver Spruce Resources Inc., closed a private placement for net proceeds of $261,250. Funds will be used to conduct due diligences and exploration activities (Pino de Plata project, Chihuahua).
  • New Gold Inc., closed a bought deal financing for gross proceeds of CAD $150M (Cerro San Pedro mine, San Luis Potosi).
  • Gold Resource Corporation, declared its August dividend of 1/6 of a cent per common share payable on September 23, 2019 to shareholders (Arista deposit, Oaxaca).

ON RESOURCES AND DEVELOPMENT

  • Santacruz Silver Mining Ltd., updated mineral resource estimate at its Veta Grande project in Zacatecas. Considering a cut-off of 100 g/t Ag, the inferred resources is 3,954,729 tonnes of 136 g/t Ag, 0.14 g/t Au, and 0.11% combined Pb+Zn (153 g/t AgEq) to contain 47M Oz AgEq.
  • Impact Silver Corp., reported results of the successful Dense Media Separation (DMS) study at its Capire open pit VMS deposit located within the Zacualpan mining district in Mexico State. “These preliminary tests indicate that it may be possible to pre-concentrate crushed run of mine material using a low cost Dense Medium Separation (DMS) plant prior to milling and mineral processing, thereby reducing the overall cost of processing at Capire and potentially bringing it back into economic production”. An initial test showed that 25% of the sample retained over 99% of Ag, Pb, and Zn minerals, and over 97% of Cu and Au in a heavy liquid separation (HLS) concentrate. A second test showed that over 42% of the sample retained 93% of Ag and Pb minerals and 79% to 92% of Cu, Au, and Zn in an HLS concentrate. “These results suggest that the addition of a DMS pre-concentration plant to the Capire process flow sheet could unlock some significant operating cost improvements that would subsequently allow a lowering of cut off grade and access to otherwise uneconomic areas of the Capire deposit”.
  • SilverCrest Metals Inc., released in-fill drilling results of 33 holes from the Babi Sur vein within its Las Chispas project in Sonora. The in-fill drilling has increased the confidence of resources and high-grade continuity in the vein. The most significant drill intersections were encountered in hole BAS19-63 with 8.51 g/t Au and 717 g/t Ag (1,355 g/t AgEq) over 3.1m of true width; hole BAS19-57 with 3.1 g/t Au and 305 g/t Ag (536 g/t AgEq) over 8.8m; and hole BAS19-49 with 5.32 g/t Au and 374 g/t Ag (773 g/t AgEq) over 3.8m. “The Babi Sur Vein and Babi Sur HW Vein are still open to depth and down plunge to the southeast. Unnamed veins are under review for possible continuity and announcement(s) of additional vein discoveries. Approximately 25 to 35 additional in-fill and expansion holes, for a minimum of 7,000 metres, are planned for the Babi Sur veins in H2, 2019”.

ON DEALS AND CORPORATE ISSUES

  • Prize Mining Corporation, reported results from its annual general meeting of shareholders. It also plans to change the name of the company to Boundary Gold and Copper Mining Ltd, and a consolidation of its common shares on a five for one basis. Change name is subject to the approval of the TSX (Manto Negro project, Coahuila).
  • SilverCrest Metals Inc., announced that it will begin trading on the Toronto Stock Exchange (TSX) following its graduation from the Toronto Stock Exchange Venture (TSXV) (Las Chispas project, Sonora).
  • Golden Minerals Company, received continued listing standard notice from the New York Stock Exchange. Specifically, the company is not in compliance with section 1003 (a) (iii) since it reported stockholder´s equity of less than $6M as of June 30, 2019 and losses from continuing operations and/or net losses in its five most recent fiscal years. In order to maintain its listing on the NYSE, Golden was asked to submit a plan of compliance no later than September 18, 2019 advising how the company intends to regain compliance with section 1003 (a) (iii) of the company guide by February 19, 2021 (Santa Maria project, Chihuahua).
  • Azure Minerals Limited, revealed that it has regained 100% of the Alacran Au-Ag project in Sonora from Teck. Alacran project host global resources of 32.2M Oz Ag and 150K Oz Au, being 27.4M Oz Ag at Loma de Plata deposit and 4.8M Oz Ag and 150K Oz Au at Loma Bonita deposit. “Azure accepted a first offer proposal to lock-in all Teck’s rights and interest in the project by issuing Teck more than 27.5 million shares – effectively bumping Teck’s stake in Azure to 19.9%”. Teck also will retain a 0.5% NSR over Alacran project.
  • Consolidated Zinc Limited, announced that the Federal Court of Mexico has ruled in its favour on the land use agreement dispute with the local ranch owner, cancelling the prior appeal Court of Chihuahua which had ruled in favour of the landowner. The company continues to operate freely at its Plomosas mine and in accordance with the agreement.
  • Minera Alamos Inc., announced the closing of the Guadalupe de Los Reyes option in Sinaloa, and the acquisition of 9.45M of common shares of Prime Mining Corp. It represents 16.1% of the outstanding common shares of Prime. Following the transaction, Minera Alamos also acquired warrants to purchase up to 3.35M additional common shares of Prime with the closing date being December 28th, 2019.
  • Newmont Goldcorp Corporation, announced successful completion of consent solicitation for its 5.875% notes due 2035. “Holders of approximately $575,330,000 (95.89%) in aggregate principal amount of the outstanding notes had validly delivered (and not validly revoked) their consent to the amendments. The company will pay, a cash payment equal to $33.33 per $1,000 aggregate principal amount of the notes for which holders had validly delivered (and not validly revoked) their consent to the amendments on or prior to the expiration date (August 23, 2019). The company intends to pay the consent fee on August 28, 2019”.

ON SOCIAL RESPONSIBILITY

  • No relevant news

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

On the picture above, flow-banded rhyolite in a prospect in Guanajuato, Mexico.  Photo by Miguel A Heredia.

 

The Mining and Exploration News in Mexico: Highlights on the Second Week of August, 2019

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By Jorge Cirett

During the 32nd week of the year (August 5th to August 11th, 2019), at least 36 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, The president of Mexico announced in a political rally that no more mining concessions are to be granted during his term in office. ON EXPLORATION, In Chihuahua, Kootenay has mobilized a drill rig to its Columba property. In Coahuila, Discovery Metals released high-grade results from underground sampling at Minerva. In Zacatecas, Alien Metals carried out surface sampling at Los Campos, Donovan and San Celso projects; Advance Gold started an IP survey at Tabasqueña. ON MINING, Gold Resource, Premier Gold, Hecla Mining, Golden Minerals, First Majestic, Coeur Mining, Argonaut Gold, Pan American Silver, Avino Silver, Endeavour Silver, Alio Gold, Torex Gold, Fortuna Silver and GoGold reported second quarter production and/or financial results for the second quarter. Mexus Gold poured first gold at its Santa Elena mine in Sonora. ON FINANCING, Excellon Resources entered into an agreement with a sole bookrunner for gross proceeds of $10 M. Santacruz Silver granted options to its directors, officers, employees, consultants and advisors. Oroco closed a first tranche for $900 K. Impact Silver completed the first series of a round of financing for $2.4 M in gross proceeds.   ON RESOURCES AND DEVELOPMENT, US Antimony continues mining at Los Juarez, Queretaro. Hecla presented drill results from San Sebastian, Durango. Orla Mining filed the FS on Camino Rojo Oxide project. VVC Exploration approved the construction of a pilot plant on its Northern Mexico Copper project. Minera Alamos received the needed environmental approval for mine construction at Santana, Sonora. Goldplay Exploration compiled all the exploration information on a 6 km trend outside the known resource in San Marcial, Sinaloa ON DEALS AND CORPORATE ISSUES, Discovery Metals filed an early warning report in respect to its holdings in Levon Resources. Tamino Minerals is working to remove the stop sign to become current on the OTC. Minera Alamos reported the retirement from the Board of Directors of Mr. Chester Millar, (a long time player in the Mexican Mining scene). Mako Mining informed the near completion of production from La Trinidad mine in Sinaloa. Chesapeake Gold re-purchased a 1% NSR from Wheaton Precious Metals. ON SOCIAL RESPONSIBILITY. Argonaut Gold engaged in multiple community projects during the second quarter on its operations at San Agustin (Durango), El Castillo (Durango), La Colorada (Sonora) and La Paz (Baja California Sur).

ON MEXICO ISSUES

  • No more mining concessions in my term: AMLO. The president of Mexico, Andres Manuel Lopez Obrador, announced this Sunday (August 11th, 2019) in a political rally in Concepcion del Oro, Zacatecas, that under his term no more mining concessions are to be granted. “To give concessions of the mining regions to national and foreign companies was a policy forwarded since the time of (Carlos) Salinas de Gortari, and up to 80 million hectares were delivered for mining exploitation. To grasp it: let’s think in our territory. Mexico has 200 million hectares, and 80 million hectares, about 40 percent of the national territory. Never in History so much of our sovereign soil had been transferred”, he said. He also reiterated that current concessions are to continue, but no new ones are to be delivered. “We are not to cancel (the concessions), but we are not to continue delivering new concessions for mining exploitation. Because it was too much what was delivered. If we analyze it, we are going to conclude that it wasn’t delivered to produce, but to speculate financially ………. With what has been delivered they have to produce. That’s the main purpose and not speculation. What we ask the mining companies is, first, take care of the environment, that no territory is destroyed, not to act as it is done in other countries”. He asked for Mexican miners to be paid as in the United States, or Canada, and that the same environmental rules be applied, also making a call for the salaries of workers to be raised, with the same benefits. (Editor’s note.- All the president arguments can be easily refuted to show that granting mining concessions is, and has been, very helpful for the country and countless of Mexicans. But there is no valid argument to present to the president that on the one hand is calling for more investment, while in the other hand is closing the door to it.)

ON EXPLORATION

  • Kootenay Silver Inc. has mobilized a drill rig to commence a 3,000 m core drill program at its Columba project in Chihuahua. “The first 12 holes of the drill program will be designed to test the F vein where underground development work extended to 200 meter depth and the historic mining occurred”.
  • Alien Metals Ltd. carried out some surface rock sampling at its Donovan, Los Campos and San Celso projects in Zacatecas, results pending.
  • Advance Gold Corp. started a 800 x 500 m 3D induced polarization (IP) geophysical survey on its Tabaqueña project, Zacatecas. The goal of the survey is to assess the depth potential below the near surface mineralized zone that was encountered in the andesites, with the graphitic phyllites below still open at depth.
  • Discovery Metals Corp. released assay results for 112 underground samples from its drill permitted Minerva Ag-Zn-Pb project in Coahuila. Highlighted results from the Minerva mine include 0.4 m @ 8,880 gpt Ag, 8.7% Zn, 43.2% Zn, 2.30% Cu, 0.3 m @ 1,200 gpt Ag, 24.8% Zn, 18.2% Pb, 0.15% Cu; 0.2 m @ 1,340 gpt Ag, 20.8% Zn, 19.6% Pb, 0.11% Cu; 0.9 m @ 517 gpt Ag, 5.7% Zn, 3.3% Pb, 0.07% Cu in veins, 0.3 m @ 1,485 gpt Ag, 8.6% Zn, 32.1% Pb, 0.10% Cu; 0.3 m @ 1,145 gpt Ag, 10.8% Zn, 34.8% Pb, 0.10% Cu; 0.5 m @ 220 gpt Ag, 34.6% Zn, 13.2% Pb, 0.05% Cu; 0.4 m @ 1,050 gpt Ag, 5.8% Zn, 26.4% Pb; 1.4 m @ 131 gpt Ag, 22.2% Zn, 2.7% Pb, 0.04% Cu in mantos. Underground samples from the Concordia area returned 0.7 m @ 848 gpt Ag, 2.7% Zn, 12.5% Pb, 0.24% Cu; 0.8 m @ 320 gpt Ag, nil Zn, 13% Pb, 0.06% Cu; 1.1 m @ 267 gpt Ag, 0.4% Zn, 6.3% Pb, 0.06% Cu in vein and limestone. At Tercia area, samples from a small working in diorite returned 0.5 m @ 226 gpt Ag, 0.2% Zn, 15.5% Pb; 0.5 m @ 181 gpt Ag, 0.2% Zn, 10.0% Pb; 1.3 m @ 124 gpt Ag, 3.2% Zn, 6.1% Pb in breccias (fault zones?).

ON MINING

  • Mexus Gold US. has poured gold at its Santa Elena mine in Sonora (not to mistake for First Majestic’s Santa Elena mine, also in Sonora). The company recovered gold from its first heap leach pad using its Merrill Crowe gold recovery system. Mexus continues to mine and crush ore for the 2nd lift on heap leach pad #1.
  • Gold Resource Corp. presented production results for the second quarter 2019. At the Oaxaca’s Mining Unit 7,881 Oz Au, 466.5 K Oz Ag, 482 tonnes Cu, 2,304 tonnes Pb, 6,054 tonnes Zn were produced. At the Arista mine 115.8 K tonnes were milled @ 1.87 gpt Au, 92 gpt Ag, 0.40% Cu, 1.96% Pb, 4.77% Zn. At the Aguila open pit mine 8,872 tonnes were milled @ 1.39 gpt Au, 43 gpt Ag. At the Mirador mine 6,737 tonnes were milled @ 1.10 gpt Au, 201 gpt Ag. The company had $7.93 M of cash and cash equivalents by the end of the period.
  • Premier Gold Mines Ltd. reported operating results for the second quarter 2019, including figures from its Mexican operations. At Mercedes, in Sonora, 167.6 K tonnes were milled @ 3.0 gpt Au, 27.2 gpt Ag, recovering 95.9% Au, 35.0% Ag to produce 15,532 Oz Au, 51,354 Oz Ag. Co-product cash cost was $1,053 per Oz Au, and the co-product all-in-sustaining cost was $1,254 per Oz Au. On by-product basis, cash cost was 1,044 per Oz Au and AISC $1,252 per OZ Au. A total of 11,281 m of drilling targeted the Diluvio, Marianas and Barrancas veins “to replace reserves support mine production, test extensions of the main mine trends and to test new geological targets.”
  • Hecla Mining Co. presented second quarter 2019 results, including figure from its operations in Mexico. At San Sebastian, Durango, 463.7 K Oz Ag, 3,547 Oz Au were produced at by-product cash cost $9.22 per Oz Ag and by-product AISC$15.50.
  • Golden Minerals Co. released financial results for the second quarter 2019. An important point on the report is the still to be completed $22 M sale of the Velardeña, Santa Maria and Rodeo properties, as well as the Velardeña mill, to Grupo Autlan. Golden had a net loss of $2.5 M , ending the period with $1.8 M in cash and cash equivalents.
  • First Majestic Silver Corp. announced financial results for the second quarter 2019. During the period 3.2 M Oz Ag, 6.4 M OZ AgEq were produced at cash cost $6.84 per Oz Ag, and AISC $ 14.76 per Oz Ag on a consolidated basis from its San Dimas (Durango), Santa Elena (Sonora), La Encantada (Coahuila), San Martin (Jalisco), La Parrilla (Durango), Del Toro (Zacatecas). At the end of the period the company had $94.5 M in cash and cash equivalents.First Majestic production table1
  • Coeur Mining Inc. reported second quarter 2019 financial results, including figures from its Mexican operations. At Palmarejo, in Chihuahua, 447.7 K tonnes were milled @ 2.18 gpt Au, 147 gpt Ag, recovering 87.7% Au, 81.8% Ag, to produce 28,246 Oz Au, 1.73 M Oz Ag at adjusted CAS $741 per Oz Au and adjusted CAS $9.17 per Oz Ag. Production started and is to be ramped up 400 tonnes per day (tpd) at La Nacion deposit.
  • Argonaut Gold Inc. announced its operating and financial results for the second qurter of 2019. At Cerro del Gallo in Guanajuato, Argonaut is advancing on the pre-feasibility study, whereas at San Antonio in Baja California participated in a public information meeting regarding the environmental impact assessment process, while advancing in environmental permitting. At El Castillo, Durango, 2.3 M tonnes of ore @ 0.39 gpt Au, 3.49 M tonnes of waste were moved at a rate of 64 K tonnes per day (tpd) to produce 14,361 Oz Au, 29,791 Oz Ag at cash cost $976 per gold equivalent ounce. At San Agustin (Durango), 1.96 M tonnes of ore @ 0.39 gpt Au, 1.41 M tonnes waste were moved at 37 K tpd to produce 12,684 Oz Au, 43,097 Oz Ag at cash cost $910 per gold equivalent ounce. At La Colorada (Sonora) 1.19 M tonnes of ore @ 0.46 gpt Au, 5.9 M tonnes of waste were moved at 78 K tpd to produce 11,723 Oz Au, 35,485 Oz Ag at cash cost $894 per gold equivalent ounce.
  • Pan American Silver Corp. reported unaudited results for the second quarter 2019, including figures from its Mexican operations. At La Colorada, in Zacatecas, 2.04 M Oz Ag, 1.1 K Oz Au were produced at cash cost $2.82 per Oz Ag and AISC $5.07 per Oz Ag. At Dolores, in Chihuahua, 1.23 M Oz Ag, 28.5 K Oz Au were produced at cash cost $6.87 per Oz Ag and AISC $22.30 per Oz Ag. “Drilling at the La Colorada mine has further defined the skarn mineralization, indicating a high concentration of base metal and silver mineralization over large widths”. By the end of the period the company had cash and shorth-term investments for $138.8 M, and working capital of $793.1 M.
  • Avino Silver & Gold Mines Ltd. released consolidated financial results for the second quarter 2019. During the period 200.9 K tonnes were milled to produce 426.1 K Oz Ag, 1,609 Oz Au, 1.14 M Lb Cu, or 599.5 K Oz AgEq, with consolidated cash cost per AgEq ounce of $10.89, and AISC $13.10 per AgEq ounce. At the end of the quarter Avino held $3.4 M of cash, and a working capital of $8.7 M.
  • Endeavour Silver Corp. released its financial results for the second quarter 2019. Consolidated production from its Guanacevi (Durango), Bolañitos (Guanajuato), El Cubo (Guanajuato) and El Compas (Zacatecas) mines was 1.06 M Oz Ag, 9,558 Oz Au, or 1.8 M Oz AgEq at an all-in-sustaining cost of $20.90 per Oz Ag net of gold credits. During the period received the final tailings permit for its Terronera project in Jalisco, and reported positive drill results from Bolañitos and Guanacevi.
  • Alio Gold Inc. reported second quarter 2019 results, including figures from its operations in Mexico. At San Francisco, in Sonora, produced 10,230 Oz Au, 5,112 Oz Ag, with a by-product cost of $1,077 per Oz Au and an AISC of $1,079 per Oz Au. In January 2019 Alio stopped active mining in the San Francisco pit and focused on processing the low grade stockpile, which is to continue until the end of the year, after which only residual leaching is to go on.
  • Torex Gold Resources Inc. announced financial and operating results for the second quarter 2019. At El Limon-Guajes in Guerrero, 145.7 K tonnes per day (tpd) were moved, including 19,890 tpd of ore @ 2.91 gpt Au, with a recovery of 88% Au to produce 113,645 Oz Au at cash cost $605 and AISC $760. The Muckahi mining system is said to be on the way to demonstrate its efficacy by year end. Torex released a maiden underground mineral resource estimate for El Limon Deep of 797 K tonnes @ 5.52 gpt Au, containing 171 K Oz Au as an indicated mineral resource. The company had a cash balance of $131 M by the end of June.
  • Fortuna Silver Mines Inc. presented consolidated financial results for the second quarter 2019, including figures from its Mexican operations. At San Jose, Oaxaca, 271 K tonnes were milled at a rate of 3,045 tpd, grading 273 gpt Ag, 1.78 gpt Au, with a recovery of 91% Ag, 90% Au to produce 2.16 M Oz Ag, 13,204 Oz Au at cash cost $6.20 per Oz Ag and an AISC of $9.3 per Ag Oz. By the end of the period Fortuna held $77.2 M in cash and cash equivalents.
  • GoGold Resources Inc. reported second quarter results 2019. During the period GoGold produced 451 K Oz Ag from the Parral tailings. By the end of June the company had $9.0 M in cash and marketable securities and no debt.

ON FINANCING

  • Excellon Resources Inc. entered into an agreement with Cormark Securities Inc. as sole bookrunner and lead underwriter to buy units of the company for gross proceeds of approximately $10 M (Platosa, Durango).
  • Santacruz Silver Mining Ltd. granted 8.5 M stock options options to its directors, officers, employees, consultants and advisors (Veta Grande, Zacatecas; Rosario, San Luis Potosi).
  • Oroco Resource Corp. closed the first tranche of the previously announced non-brokered private placement for gross proceeds of $900 K (Santo Tomas, Sinaloa).
  • Impact Silver Corp. completed the first series of the third tranche of the non-brokered private placement previously announced and updated, receiving aggregate gross proceeds of $2.44 M. The company intends to complete a second series of the third tranche for gross proceeds of $554.2 K. Impact has paid $56 K to Infor Financial Inc. and $50 K to Canaccord Genuity Corp. as finders fee (Zacualpan, Estado de Mexico).

ON RESOURCES AND DEVELOPMENT

  • United States Antimony Corp. continues mining in two open pits at Los Juarez mine in Queretaro. At the Puerto Blanco mill in Guanajuato maintenance and improvements are being made to support increased production. At the Puerto Blanco leach circuit the plastic liner and fire assay equipment have been purchased. At the Madero smelter in Coahuila, The caustic leach plant has been tested and is operational to produce gold, silver, and antimony.
  • Hecla Mining Co. added new mineralization by drilling on the Middle and El Toro veins, potentially adding oxide mine life to San Sebastian, in Durango. Near-surface mineralisation has been defined by drilling for over 1,200 m along strike and 160 m of depth. Recent intercepts include 2.40 m @ 874 gpt Ag, 11.5 gpt Au; 1.50 m @ 398 gpt Ag, 1.86 gpt Au; 3.41 m @ 236 gpt Ag, 3.42 gpt Au. “Preliminary engineering studies have begun to evaluate the potential of both open pit and underground mining options at El Toro and drilling in this area is planned to continue through the third quarter.”
  • Orla Mining Ltd. filed a technical report on its Camino Rojo project, Zacatecas. The company previously released the results of the feasibility study (FS) for the oxide part of the mineralized body, which envisages the movement of 44 M tonnes @ 0.73 gpt Au, 14.2 gpt Ag to leach pads, and a recovery of 64% Au, 17% Ag.
  • VVC Exploration Corp. board of directors approved the start of a pilot mine on the Gloria Zones of its Northern Mexico Copper Project (Samalayuca) in Chihuahua. The plan envisions open pit mining and heap leach extraction by electrowinning (SX-EW) starting at 2 K tonnes per day (tpd) of mineralized material, scalable to 4 K tpd.
  • Minera Alamos Inc. received the approval of the environmental impact statement (Manifestación de Impacto Ambiental, or MIA) by SEMARNAT, the regulatory federal environmental agency, rendering the company with the key approvals for the construction of  commercial scale mining facilities at its Santana project in Sonora.
  • Goldplay Exploration Ltd. compiled all the exploration information supporting that its San Marcial project in Sinaloa has a strong precious metal potential, beyond the already defined resource. Five known areas over a 6 km trend include: Nava, with trench sampling of up to 24 m @ 2.1 gpt Au; Chachalaca Micuines, where several rock chip samples returned 1m @ 1.0 – 5.0 gpt Au, and up to 0.9 m @ 13.3 gpt Au; Guacamayo, with a trench interval returning 24 m @ 219 gpt Ag, 0.25 gpt Au; Resource area, on which recent assays of drill holes identified new gold mineralisation outside the resource, with true width intervals (tw) of 1.0 m @ 2.5 gpt Au, 8.4 m @ 0.7 gpt Au, 12 m @ 0.2 gpt Au; Faisanes, where recently a drill hole interval of tw 0.9 m @ 204.6 gpt Au.

ON DEALS AND CORPORATE ISSUES

  • Discovery Metals Corp. filed an early warning report in respect of its holdings in Levon Resources Ltd., now beneficially owns or controls 117.1 M Levon Shares, representing all of the issued and outstanding Levon Shares. Discovery did not own or control, directly or indirectly, any shares in Levon prior to the Arrangement. (Puerto Rico, Coahuila; Cordero, Chihuahua).
  • Tamino Minerals Inc. informed that “The company is not planning to complete a REVERSE SPLIT at this moment and is not in the company’s plans to do this.” Furthermore stating that “no dilution is guaranted” as its latest DTCC Share Position Report shows that the company has 149.8 M common shares in the float. The company is also working on preparing financial statements in order to remove the stop sign to become current on the OTC Markets (El Volcan, Sonora).
  • Minera Alamos Inc. reported the retirement from the Board of Directors of Mr. Chester Millar. Mr Millar (born 1927) was involved in multiple heap leach mining projects in Mexico for several decades, and is included in the Canadian Mining Hall of Fame since 2008 (Note by editor.- our sincere thanks and respect to Chester Millar for his contributions to the mining industry in Mexico).
  • Mako Mining Corp. informed gold production from the Trinidad mine in Sinaloa is nearing completion. Mining operations ceased at the end of March, and most of the crushing plant has been moved to another project in Nicaragua. The company has been unsuccessful in receiving any proceeds from the claim due to the damages sustained at La Trinidad from Hurricane Willa in October 2018, and legal actions have commenced against the insurer provider and their reinsurers. “Discussions are underway with the mining contractor for La Trinidad and the Mexican government regarding significant payables still outstanding at our Mexican subsidiary that holds La Trinidad”. Mako believes that the company has properly structured its Mexican subsidiary in a way that these liabilities do not extend outside of Mexico, whereby any proceeds from the sale of the equipment, or success in the insurance litigation, will be for the benefit of Mako. Discussions are proceeding with the mining contractor with the goal of reaching a mutually acceptable settlement. Finally, all other assets held in Mexico are to be sold or liquidated on due course (Note of editor.- From the outside, and with no further information other than what’s on the press release, the remarks on the isolation of the parent company from any litigation while leaving the country with debts outstanding are the kind of practices that make foreign companies easy targets for interest groups on any country. In short, please do not do that).
  • Chesapeake Gold Corp. has exercised an option to re-purchase a one percent (1.0%) net smelter returns royalty (NSR) on its Metates Au-Ag-Zn project, Durango. The NSR was purchased from Wheaton Precious Metals Co., a subsidiary of Wheaton Precious Metals Corp. for US$9.0 M.

ON SOCIAL RESPONSIBILITY

  • Argonaut Gold Inc. engaged in multiple community projects during the second quarter of 2019. Received the nationally awarded Environmental Socially Responsible Company recognition at the El Castillo Complex for the seventh consecutive year, and held an opening ceremony of a new plant nursery at San Agustin (also in Durango). At La Colorada (Sonora), San Juan del Rio (Durango) and San Antonio (Baja California Sur) hosted a Children’s Day celebration. At La Colorada (Sonora) assisted, in collaboration with the State of Sonora Secretariat of Education and Culture, with the rehabilitation of educational facilities and donated computers, as well as hosted a women’s community workshop in La Colorada. Finally, hosted a health and wellness community workshop in La Paz, Baja California Sur.

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 veinlets and quartz filed breccia in metamorphic rocks of a project in Oaxaca. Picture by Jorge Cirett

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The Mining and Exploration News in Mexico: Highlights on the Fourth Week of July, 2019

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By Jorge Cirett

During the 30th week of the year (July 22nd to July 28th, 2019), at least 29 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, the Chihuahua government announced the Los Gatos mine is about to start production in the municipality of Satevó, and stated that the mining industry is of uttermost importance in the State, with 44 companies (80% Canadian) providing 12,300 well-paid jobs. ON EXPLORATION, In Sonora, Evrim released drill results from its Sarape project. ON MINING, Excellon, Mexus Gold and Great Panther presented production or financial results. Azure commenced open-pit mining at its Oposura project in Sonora. ON FINANCING, In a great week for the resource companies sector, Impact Silver, Golden Minerals, Americas Silver, SilverCrest Metals, Mako Mining, Southern Silver, Avino Silver, Discovery Metals and Oroco announced financing rounds for combined tens of millions of dollars, with several of those placements having been increased after the opening. Silver One Resources granted options to its personnel and consultants. Defiance Silver entered into a $200 K loan with one of its officers. Mexus Gold US paid a $105 K loan. Capstone Mining extended and amended its US$300 million corporate revolving credit facility.  ON RESOURCES AND DEVELOPMENT, Avino Silver released results from holes previously drilled testing the Avino system stockwork hanging-wall. GoGold released results from four more holes at its Los Ricos project in Jalisco. ON DEALS AND CORPORATE ISSUES, Prize Mining intends to change its name to Boundary Gold and Copper Mining. One World Lithium issued a technical clarification on its previous press release on drilling at its Salar del Diablo project in Baja California. Discovery Metals received conditional approval for the plan of arrangement with Levon Resources for the combination of its businesses, and Levon shareholders approved the said plan of arrangement.

ON MEXICO ISSUES

  • The Secretariat on Innovation and economic Development of Chihuahua announced that a new mining project is about to start operations in the state: Los Gatos, in San Jose del Sitio, Satevó, with a US$316 M investment by Sunshine Silver and Dowa Holdings Co. Ltd. from Japan, that is to create more than 350 jobs. Other mining operations in the state include Pan American Silver’s Dolores mine in Madera, where 850 persons work, and Coeur’s Palmarejo mine with 800 workers. Chihuahua has 14 big mining operations, with 44 companies exploring in the state (80% Canadian companies) that generate 12,300 direct jobs with salaries that are 190% above the State average.

ON EXPLORATION

  • Evrim Resources Corp. released drill results from the 2019 maiden drill program at the Sarape project in Sonora. The 2,390 m ten hole program covered a 380 m strike length along the Sarape (6 km long), La Nune and Chiltepin veins. Highlighted results include 0.25 m @ 1.48 gpt Au, 20 gpt Ag; 8.47 m @ 0.33 gpt Au, 8 gpt Ag; 7.55 m @ 0.19 gpt Au, 11 gpt Ag; 24.68 m @ 0.18 gpt Au, 9 gpt Ag (including 1.4 m @ 0.55 gpt Au, 31 gpt Ag); 1.47 m @ 0.31 gpt Au, 21 gpt Ag; 1.46 m @ 0.80 gpt Au, 34 gpt Ag; 3.15 m @ 0.26 gpt Au, 10 gpt Ag; 11.57 m @ 0.22 gpt Au, 5 gpt Ag.

ON MINING

  • Excellon Resources Inc. announced second quarter 2019 production results from its Platosa mine, Durango. At the site 18,717 tonnes were mined, 19,964 tonnes processed @ 514 gpt Ag, 4.97% Pb, 7.40% Zn, recovering 90.6% Ag, 83.6% Pb, 79.6% Zn to produce 276.8 K Oz Ag, 1.76 M Lb Pb, 2.5 M Lb Zn. “.. the operation accessed multiple ore faces in the Rodilla, Pierna, 623 and Guadalupe South mantos. Operational efficiencies implemented in previous quarters continued to deliver results with lower dilution, higher grades and steady production rates”.
  • Mexus Gold US. informed that leaching from its 2,500 ton leach pad is returning solution to the holding pond at its Santa Elena mine in Sonora (not to mistake for First Majestic’s Santa Elena mine, also in Sonora). “It is expected to accumulate 5 to 7 oz. the first week with leaching continuing until the return solution stabilizes. Mexus will be adding new ore to the pad with the Merrill Crow gold recovery system running weekly to keep up with production.”
  • Great Panther Mining Ltd. reported financial results for the second quarter 2019. Most of the report is focused on the operation of the company’s recently acquired Tucano mine in Brazil, and not much is disclosed about its Mexican operations, other than the production of 10,023 Oz AuEq. At the end of the period cash and short-term deposits were $9.9 M (Topia, Durango).
  • Capstone Mining Corp. extended and amended its US$300 million corporate revolving credit facility with Canadian Imperial Bank of Commerce (CBIC) and Bank of Nova Scotia. “In the quarter ending June 30, 2019, Capstone paid an additional $20 million towards long-term debt , bringing the total deleveraging payments to $129 million over the last ten fiscal quarters, and the total long-term debt balance to $199.9 million” (Cozamin, Zacatecas).
  • Azure Minerals Ltd. commenced mining at its Oposura project in Sonora. Ore grading 10-15% Pb-Zn is being open-pit mined at a rate of 1,500-3,000 tonnes per month on the East-Zone, where all material being mined is classified as indicated mineral resources. “Processing of this ore is expected to commence in September under a toll treatment agreement with a third-party sulphide flotation processing plant”.

ON FINANCING

  • Silver One Resources Inc. granted 2.43 M stock options to its directors, officers, consultants and advisors (La Frazada, Nayarit).
  • Impact Silver Corp. amended the terms of its ongoing non-brokered private placement financing due to strong interest. Under the actual terms, Impact has closed a first tranche for gross proceeds of $1.235 M and expects to close a second tranche for additional $714 K. Under the modified terms a third tranche has been added seeking to raise additional $3 M (Zacualpan District, Estado de Mexico).
  • Impact Silver Corp. completed the second tranche of the previously announced non-brokered private placement, receiving aggregate gross proceeds of $714.3 K (Zacualpan District, Estado de Mexico).
  • Golden Minerals Co. closed the direct offering previously announced, for gross proceeds $2.25 M (Rodeo, Durango).
  • Americas Silver Corp. announced that Eric Sprott purchased shares of the company for a total of US$10 M in a non-brokered private placement, increasing its ownership to above 8% (Cosalá, Sinaloa).
  • SilverCrest Metals Inc. entered into an agreement with a syndicate of underwriters for the purchase of shares with gross proceeds of C$22.0 M, with the company paying the underwriters a cash commission of up to 5% of the gross proceeds. SSR Mining elected to exercise its right to maintain its pro rata ownership of up to 9.9% (Las Chispas, Sonora).
  • Defiance Silver Corp. “entered into a loan agreement with an entity controlled by one of its officers and directors which allows Defiance to borrow up to $200,000. The Loan is unsecured and will bear interest at the rate of 1% per month, accrued daily. It will mature on July 22, 2020”(San Acacio, Zacatecas).
  • Mako Mining Corp. announced the completion of the previously announced rights offering, raising total aggregate gross proceeds of $27 M.
  • Mexus Gold US. informed that the company has satisfied a $105 K loan commitment on time (Santa Elena, Sonora).
  • Southern Silver Exploration Corp. announced its previously announced $2M non-brokered private placement has been increased to $3 M (Cerro Las Minitas, Durango).
  • Avino Silver & Gold Mines Ltd. entered into an agreement with Cantor Fitzgerald Canada Corp. as sole underwriter to the purchase of common shares of the company for gross proceeds of $4M and additional flow-through common shares for additional gross proceeds of $2 M (Avino, Durango).
  • Discovery Metals Corp. closed its non-brokered private placement, raising $ 9.0 M. Mr Eric Sprott acquired 17.56 M shares, and as a result he’s now the owner of 19.9% of Discovery’s issued and outstanding common shares. Finders’ fees of $17,500 were paid (Puerto Rico, Coahuila; Cordero, Chihuahua).
  • Oroco Resource Corp. announced a non-brokered private placement to raise $1.35 M (Santo Tomas, Sinaloa).
  • Americas Silver Corp. closed its previously announced non-brokered private placement with Mr. Eric Sprott, raising gross proceeds of US$10 M.
  • Capstone Mining Corp. extended and amended its US$300 million corporate revolving credit facility with Canadian Imperial Bank of Commerce (CBIC) and Bank of Nova Scotia. “In the quarter ending June 30, 2019, Capstone paid an additional $20 million towards long-term debt , bringing the total deleveraging payments to $129 million over the last ten fiscal quarters, and the total long-term debt balance to $199.9 million” (Cozamin, Zacatecas).

ON RESOURCES AND DEVELOPMENT

  • Avino Silver & Gold Mines Ltd. released results from a sampling campaign comprising 52 recent and historic holes that were previously drilled on the hanging-wall of the Avino stockwork system of its Avino property in Durango. Some of the results released: 3.05 m @ 1.31 gpt Au, 24 gpt Ag, 0.02% Cu; 4.30 m @ 1.47 gpt Au, 71 gpt Ag, 0.49% Cu; 2.20 m @ 5.00 gpt Au, 120 gpt Ag, 0.13% Cu; 16.00 m @ 2.06 gpt Au, 67 gpt Ag, 0.69% Cu; 2.95 m @ 1.50 gpt Au, 31 gpt Ag, 0.47% Cu; 1.25 m @ 3.27 gpt Au, 10 gpt Ag, 0.11% Cu; 2.00 m @ 15.60 gpt Au, 146 gpt Ag, 0.28% Cu; 4.10 m @ 3.82 gpt Au, 103 gpt Ag, 0.23% Cu; 5.45 m @ 1.26 gpt Au, 133 gpt Ag, 0.07% Cu; 9.50 m @ 1.82 gpt Au, 119 gpt Ag, 0.50% Cu; 5.95 m @ 2.29 gpt Au, 232 gpt Ag, 0.30% Cu; 4.90 m @ 5.36 gpt Au, 26 gpt Ag, 0.07% Cu; 8.43 m @ 2.16 gpt Au, 21 gpt Ag, 0.15% Cu.
  • GoGold Resources Inc. delivered assays results from four more holes at its Los Ricos project in Jalisco. Highlighted intervals comprise: 21.4 m @ 0.81 gpt Au, 170 gpt Ag (including 12.9 m @ 1.24 gpt Au, 262 gpt Ag which includes 7.5 m @ 1.78 gpt Au, 342 gpt Ag) in one hole; 4.5 m @ 1.50 gpt Au, 197 gpt Ag, then stope, then 13.8 m @ 0.63 gpt Au, 86 gpt Ag) in another hole; 14.9 m @ 1.78 gpt Au, 106 gpt Ag in a third one and 7.5 m @ 0.09 gpt Au, 18 gpt Ag, then 2.2 m of open stope, then 15.6 m @ 1.15 gpt Au, 113 gpt Ag (including 6.5 m @ 2.38 gpt Au, 236 gpt Ag. The first hole of this release is the deepest so far to intersect the Los Ricos vein.

ON DEALS AND CORPORATE ISSUES

  • Prize Mining Corp. announced its shareholders will be asked in August 22 to approve the continuation of the company into the jurisdiction of Britsh Columbia, the consolidation of its shares on a 5 to one basis and the name change of the company to Boundary Gold and Copper Mining Ltd. (Manto Negro, Coahuila).
  • Discovery Metals Inc. has received conditional approval from the TSX Venture Exchange to complete the transaction with Levon Resources Ltd. for the combination of their businesses (Puerto Rico, Coahuila; Cordero, Chihuahua).
  • One World Lithium Inc. issued a technical clarification as a result of a review by the British Columbia Securities Commission about a previous news release on drilling results at its Salar del Diablo project in Baja California. The company had three distinct target levels at several zones, but drilling encountered harsh conditions due to the natural variability of the unconsolidated basin sediments. “Dense mudstones were interlayered with unconsolidated, water- and brinebearing sands. Drill bits and related equipment were commonly plugged by the mudstones, requiring multiple trips out of the hole to clean and unplug the drill bits. Unconsolidated sands poured or sloughed into the drill bore, requiring substantial time to stabilize the drill hole before drilling to additional depths. Some measure of control was established by drilling and setting casing at deeper levels, but high amounts of water impeded the progress of the drill…..”
  •  Discovery Metals Inc. announced a majority of Levon Resource Ltd’s shareholders approved the plan of arrangement for the combination of businesses (Puerto Rico, Coahuila, Cordero, Chihuahua).

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: sheeted quartz veinlets and minor stockwork development in metamorphic rocks of a project in Oaxaca. Picture by Jorge Cirett

IMG_2618 - copia

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

Boiling texture in a quartz chalcedonic vein

By Miguel A Heredia

During the twenty seven week of the year (July 15th to July 7th, 2019), at least 27 press releases were announced by companies working in Mexico, with ten communicating production results, seven disclosing deals and corporate issues, six announcing financial rounds, two reporting on resources and development of their projects,  and two informing on exploration results.  ON MEXICO ISSUES, no relevant news.  ON EXPLORATION, In Chihuahua, Silver Spruce secured drill pads to commence phase 1 drill program at its Pino de Plata project. In Oaxaca, Megastar identified multiple targets at its Yautepec property. ON MINING, Avino, Consolidated Zinc, First Majestic, Fortuna Silver, Fresnillo, Gold Resource, Hecla, McEwen, Premier, and Sierra Metals reported Q2, 2019 production results from their Mexican operations. ON FINANCING, Americas Silver announced a non-brokered private placement for gross proceeds of approximately US$10M (Cosala, Sinaloa). It also announced the termination of the agreement with Premier Gold on the San Felipe project in Sonora for total sales proceeds of US$10.8M. Discovery Metals announced its intentions to complete a non-brokered private placement to rise gross proceeds of $9M (Puerto Rico project, Coahuila). Golden Minerals entered in definitive agreements to rise gross proceeds of $2.25M (Santa Maria project, Chihuahua). Mexican Gold closed a non-brokered private placement for gross proceeds of $4M (Las Minas project, Veracruz). Orla Mining rised $3.6M through early warrant exercise incentive program (Camino Rojo project, Zacatecas). Silver Spruce received a final payment of $150K for the sale of its Kay Mine project to Croesus. Silver Spruce received and accepted an unsolicited cash investment offer of USD $250K (Pino de Plata project, Chihuahua). ON RESOURCES AND DEVELOPMENT, Endeavour acquired two mineral properties adjacent to its Guanacevi mine in Durango. SilverCrest received the operating permit from SEMARNAT for the development of its Las Chispas project in Sonora. ON DEALS AND CORPORATE ISSUES, Silver Spruce announced the acquisition of the Cocula advanced Au project in Jalisco. Excellon, Great Panther, Mexican Gold, and Prize announced management changes.  Mexican Gold, Prize, and Minera Alamos granted stock options to Directors, Officers, Employees, and Consultants.

 ON MEXICO ISSUES

  • No relevant news.

ON EXPLORATION

  • Silver Spruce Resources Inc., secured drill pads to commence phase 1 drill program at its Pino de Plata project in Chihuahua. The surface landowners have granted surface access and signed the drill permit application.
  • Megastar Development Corp., identified multiple targets at its Yautepec property in Oaxaca. The property lies within the known Oaxaca Au-Ag epithermal trend that hosts the San Jose Mine owns by Fortuna Silver, and the Arista-Switchback mine owned by Gold Resource. Results from the first 146 rock-chip samples were received. Significant results are: 6 samples with > 10 ppm Ag (maximum value of 62 ppm Ag); 9 samples with > 100 ppb Au (maximum value of 0.86 ppm Au);   5 samples with > 100 ppm Cu (maximum value of 639 ppm Cu); 6 samples with > 100 ppm Pb (maximum value of 863 ppm Pb); 10 samples with > 100 ppm Zn (maximum value of 215 ppm Zn; 8 samples with > 100 ppm Mo (maximum value of 648 ppm Mo); 12 samples with > 1,000 ppm As (maximum value of 6,290 ppm As); 9 samples with > 1,000 ppm Ba (maximum value of 4,590 ppm Ba); and 12 samples with > 1 ppm Hg (maximum value of 7.8 ppm Hg). These anomalous values are from quartz veins, silicified breccias and siliceous sinter deposits in multiple areas along a north-northwest striking 8.4km trend of prospective rocks that trace a volcanic caldera margin. An additional 175 rock-chip samples have been submitted to the lab and results will be announced in subsequent new releases.

ON MINING

  • Avino Silver & Gold Mines Ltd., reported Q2, 2019 consolidated production results from its Avino mine operation in Durango. It processed 200,873 tonnes of 57 g/t Ag, 0.41 g/t Au, and 0.38%Cu to produce 246K Oz Ag, 1,609 Oz Au, and 1.14M Lb Cu. Metallurgical recoveries were 69%, 61% and 63% for Ag, Au, and Cu respectively.
  • Consolidated Zinc Limited, reported June 2019 production results from its Plomosas mine in Chihuahua. It mined 5,099 tonnes of 17.5% Zn, 11.2% Pb, and 62 g/t Ag for a total of 2M Lb Zn, 1.3M Lb Pb, and 10.2K Oz Ag contained. From this tonnage, only 2,409 tonnes were processed but additional stockpiles of 6,599 tonnes remain in mine site awaiting be delivered to the Aldama plant.
  • First Majestic Silver Corp., announced Q2, 2019 production results from their Mexican operations. The below table shows the mine by mine production results:

 

  • Fortuna Silver Mines Inc., released Q2, 2019 production results from its San Jose mine in Oaxaca. Fortuna processed 271,016 tonnes of 273 g/t Ag and 1.68 g/t Au to produce 2.2M Oz Ag and 13.2K Oz Au, with metallurgical recoveries of 90.76% and 90.23% respectively.
  • Fresnillo plc., reported Q2, 2019 consolidated production results from their Mexican operations. The company produced 14.42M Oz Ag (including Silverstream), 221.3K Oz Au, 29.2M Lb Pb, and 46.3M Lb Zn. The production results by mine are as follow: At the Fresnillo mine in Zacatecas, 618,852 tonnes with grades of 192 g/t Ag, 0.9 g/t Au, 1% Pb, and 1.6% Zn were processed to produce 3.5M Oz Ag, 13.5K Oz Au, 11.7M Lb Pb, and 15M Lb Zn. At the Saucito mine in Zacatecas, 662,023 tonnes were processed with grades of 242 g/t Ag, 1.15 g/t Au, 0.8% Pb, and 1.3% Zn to produce 4.5M Oz Ag, 18K Oz Au, 10.2M Lb Pb, and 13.31M Lb Zn. At the Piritas Plant in Zacatecas, 39,159 tonnes were processed with grades of 352 g/t Ag and 2.57g/t Au to produce 333K Oz Ag and 1,215 Oz Au. At the La Cienega mine in Durango, the company processed 329,117 tonnes with grades of 1.57 g/t Au, 162 g/t Ag, 0.6% Pb, and 1.1% Zn to produce 15K Oz Au, 1.5M Oz Ag, 3M Lb Pb, and 4.8M Lb Zn. At the San Julian mine in Chihuahua-Durango border, Fresnillo processed 338,797 tonnes of 1.71 g/t Au and 124 g/t Ag from San Julian Veins to produce 17.7K Oz Au and 1.2M Oz Ag, while 562,534 tonnes were processed from the San Julian Disseminated Ore Body with grades of 0.08 g/t Au, 149 g/t Ag, 0.4% Pb, and 1.4% Zn, to produce 636 Oz Au, 2.3M Oz Ag, 4.2M Lb Pb, and 13.3M Lb Zn. Total production at San Julian was 18.3K Oz Au and 3.6M Oz Ag. At its Herradura mine in Sonora, the company processed 5,466,791 tonnes of 0.84 g/t Au and 2.5 g/t Ag to produce 120K Oz Au and 280K Oz Ag. At the Noche Buena mine in Sonora, Fresnillo processed 3,663,549 tonnes of 0.56 g/t Au and 0.22 g/t Ag,  to produce 35.3K Oz Au and 17K Oz Ag.
  • Gold Resource Corporation, released production results from its Oaxaca Mining Unit for the period Q2, 2019. It produced 7,881 Oz Au, 466.5K Oz Ag, 1.1M Lb Cu, 5.2M Lb Pb, and 13.6M Lb Zn.
  • Hecla Mining Company, reported Q2, 2019 production results from its San Sebastian mine in Durango. The company produced 0.5M Oz Ag and 3,547 Oz Au.
  • McEwen Mining Inc., announced that 5,340 Oz Au were produced at its El Gallo mine in Sinaloa during the period Q2, 2019.
  • Premier Gold Mines Limited, reported that a total of 15.5K Oz Au and 56.5K Oz Ag were produced from its Mercedes mine in Sonora during Q2, 2019.
  • Sierra Metals Inc., released Q2, 2019 production results from their Mexican operations. At Its Bolivar mine in Chihuahua, Sierra Metals processed 326,208 tonnes of 0.86% Cu, 18 g/t Ag, and 0.24 g/t Au to produce 5.2M Lb Cu, 152K Oz Ag, and 1,586 Oz Au. At its Cusi mine in Chihuahua, the company processed 82,117 tonnes of 1|45 g/t Ag, 0.15 g/t Au, and 0.1% Pb to produce 283K Oz Ag, 146 Oz Au, and 154K Lb Pb.

ON FINANCING

  • Americas Silver Corporation, announced that Eric Sprott has agreed to purchase common shares of the company for a total investment of approximately US$10M in a non-brokered private placement (Cosala, Sinaloa). It also announced the termination of the agreement with Premier Gold on the San Felipe project in Sonora for total sales proceeds of US$10.8M.
  • Discovery Metals Corp., announced its intentions to complete a non brokered private placement to raise gross proceeds of $9M, of which Eric Sprott has agreed to purchase 19.9% of the company by investing $7.7M. Discovery plans to acquire all the issued and outstanding common shares of Levon Resources Ltd., as announced in a news release dated May 30, 2019. Gross proceeds will be used to continue exploration at Cordero, Chihuahua, following the acquisition of Levon, and at the Coahuila projects (Puerto Rico, Minerva, and Monclova).
  • Golden Minerals Company, entered in definitive agreements with institutional investors for an offering of shares of common stock with gross proceeds of $2.25M (Santa Maria project, Chihuahua).
  • Mexican Gold Corp., closed a non-brokered private placement for gross proceeds of $4M. Net proceeds will be used for exploration and advancement of its Las Minas project in Veracruz.
  • Orla Mining Ltd., rised $3.6M through an early warrant exercise incentive program rised $3.6M. Net proceeds will be used to continue regional exploration and allow greater flexibility prior to construction of its Camino Rojo Oxide project in Zacatecas.
  • Silver Spruce Resources Inc., received a final payment of $150K for Croesus Gold Corp., for the sale of its Kay Mine project. Some of the net proceeds will be used to fund the due diligence program at its advanced Cocula gold project in Jalisco. The company also received and accepted an unsolicited cash investment offer of USD $250K to purchase 5% interest of Silver Spruce Resources de Mexico SA de CV, the Mexican subsidiary of Silver Spruce, and 5% interest in the mining titles for each of the four mining concession that comprise its Pino de Plata project in Chihuahua. The offer was done before the commencement of the phase 1 drill program.

ON RESOURCES AND DEVELOPMENT

  •  Endeavour Silver Corp., acquired a 10 years rights to explore and exploit two mineral properties adjacent to its Guanacevi mine in Durango from a subsidiary of Minera Frisco SAB de CV. The El Porvenir property of 15 Ha covers the up dip extension of the El Porvenir Norte orebody, and The El Curso property of 40 Ha that covers any possible northwest extension of the El Porvenir Cuatro orebody, which was the highest grade mine in the district. Endeavour agreed to meet certain minimum production targets from the properties and pay Frisco a fixed per tonne production payment plus a floating NSR based on the spot Ag price.
  • SilverCrest Metals Inc., received from SEMARNAT the approval of the MIA or operating permit for the development of its Las Chispas project in Sonora. The receipt of the MIA provides the company to construct a 3,000 tonnes per day underground mine and a conventional processing facility with subsequent dry stack tailings and underground backfill for Las Chispas. The MIA remains in good standing for 14 years until July 17, 2033.

 ON DEALS AND CORPORATE ISSUES

  • Silver Spruce Resources Inc., acquired 100% interest in the Cocula advanced Au project in Jalisco from Prospeccion y Desarrollo Minero del Norte SA de CV (ProDeMin), which in turn, has an option agreement from the owners to acquire 100% interest in the Cocula project. Terms of the acquisition include a USD$160K due within two years of assumption of the ProDeMin contract; USD$330K due within year three; and USD$2.5M due within year four. ProDeMin has to negotiate with the owners to delay payments and to accept cash and company shares as payment. The owners also have retained a 2% NSR which is capped at USD$1.5M and of which 1% can be purchased for USD$500K. Minimum work expenditure include USD$250K in the first two years and USD$500K within the following two years. Silver Spruce has also agreed to reimburse ProDeMin USD$125K over two years for its previous option payments made to the owners, upon completion of the Company’s financing requirements, and to issue 3M of the Company’s common shares to ProDeMin over four years.
  • Excellon Resources Inc., announced the appointment of its CFO and VP Corporate Development (La Platosa, Durango).
  • Great Panther Mining Limited, announced the appointment of the Chair of the Board of Directors of the company (Topia mine, Durango).
  • Mexican Gold Corp., announced the resignation of its COO and one Director, and the appointment of a new member to its Board of Directors. The company also granted stock options to Directors, Officers, and Consultants of the company (Las Minas, Veracruz).
  • Prize Mining Corporation appointed as new Director to the Board of the company. It also granted stock options to Directors, Officers, Employees, and Consultants of the company (Manto Negro project, Coahuila).
  • Minera Alamos Inc., granted stock options to Managements, Directors, Employees, and Consultants of the company (Santana project, 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 picture above, boiling texture in a low-sulphidation epithermal chalcedonic quartz vein in a prospect in Durango, Mexico.  Photo by Miguel A Heredia.

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

Cu mineralization

By Miguel A Heredia

During the twenty five week of the year (July 1st to July 7th, 2019), at least 13 press releases were announced by companies working in Mexico, with four disclosing deals and corporate issues, three announcing financial rounds, two reporting on resources and development of their projects, two communicating production results, and two informing on exploration results.  ON MEXICO ISSUES, no relevant news.  ON EXPLORATION, In Sonora, Sonoro Metals completed the phase 2 drill program at its Cerro Caliche project and released results for the last 15 holes. In Chihuahua, Kootenay commenced a drilling program at its Columba project. ON MINING, Leagold reported Q2 2019 production results (Los Filos mine, Guerrero). US Antimony released June 2019 production results from their Mexican operations and announced the start of production from its Los Juarez project in Queretaro. ON FINANCING, Aztec Minerals oversubscribed a non-brokered private placement to rise gross proceeds of CAD $468K (Cervantes project, Sonora). Mexican Gold announced a non-brokered private placement to rise gross proceeds of up to $4M (Las Minas project, Veracruz). Silver One announced a non-brokered private placement to rise gross proceeds of up to $2.5M (Peñasco Quemado project, Sonora). ON RESOURCES AND DEVELOPMENT, Fresnillo plc announced that the construction of its Piritas Plant continues and is expected to be operating in H2, 2020. Peñoles revealed its plan to put into operation its Capela polymetallic mine in Guerrero in Q3, 2019. ON DEALS AND CORPORATE ISSUES, Kootenay and Azucar Minerals granted stock purchase options to certain officers, directors, employees, and consultants. Sonoro Metals reported results from its annual general meeting for shareholders (Cerro Caliche project, Sonora). Santacruz acquired 50% interest in Carrizal Mining (Veta Grande project, Zacatecas). Endeavour reported a fatal accident at its Bolañitos mine in Guanajuato.

 ON MEXICO ISSUES

  • No relevant news.

ON EXPLORATION

  • Sonoro Metals Corp., completed the phase 2 drill program at its Cerro Caliche project in Sonora. Results from the drilling program that have increased substantially the size of the Au mineralization of all the mineralized areas at the project. Sonoro has drilled a total of 10,328m in 96 holes. The combination of historic and current exploration drilling now totals 23,679 meters in 212 drill holes in addition to more than 6,000 surface samples. The company also released assay results from the final 15 holes. Significant drill intersections are in hole SCR-094 with 1.13 g/t Au and 1.8 g/t Ag over  67m, including  2.67 g/t Au and 2.2 g/t Ag over 3.05m; hole SCR-095 with 0.66 g/t Au and 9 g/t Ag over 19.81m, including 4.47 g/t Au and 18 g/t Ag over 1.52m; hole SCR-089 with 0.57 g/t Au and 7 g/t Ag over 22.86m, including 1.82 g/t Au and 13 g/t Ag over 3.05m; hole SCR-083 with 0.51 g/T Au and 17 g/t Ag over 22.86m, including 3.16 g/t Au and 36 g/t Ag over 1.52m; and hole SCR-84 with 0.51 g/t Au and 14 g/t Ag over 15.24m, including 2.93 g/t Au and 34 g/t Ag over 1.53m. The company announced that it has commissioning an independent NI 43-101 technical report to estimate the resource potential of its Cerro Caliche project.
  • Kootenay Silver Inc., announced the commencement of a minimum of 3,000m core drill program in 12 holes at its Columba high-grade epithermal vein system project in Chihuahua which has returned up to 693 g/t Ag on surface sampling. “The first 12 holes of the drill program will be designed to test the F vein where underground development work extended to 200 meter depth and the historic mining occurred”. Historic grades from the underground workings indicate grades ranging from 600 to 900 g/t Ag with highlights of 1,900 g/t Ag over 4 meters and 679 g/t Ag along 133 meters of vein strike and 1.3 meters of vein width.

ON MINING

  • Leagold Mining Corporation, reported production results from its mine operations in Mexico and Brazil. The company produced 91,285 Oz Au in Q2, 2019 bringing year to date 2019 (H1, 2019) 197,234 Oz Au. (Los Filos mine, Guerrero).
  • US Antimony Corporation, released production results from their Mexican operations. The company produced 121, 451 Lb Sb, 1,211 short tonnes of zeolites, 846 Oz Ag and 8.5Oz Au in June, 2019. US Antimony also announced the start of Au-Ag production at its Los Juarez project in Queretaro with the processing of 30K tonnes at its Puerto Blanco flotation mill in Guanajuato.

ON FINANCING

  • Aztec Minerals Corp., oversubscribed a non-brokered private placement to raise gross proceeds of CAD $468K. The gross proceeds will be used to fund exploration work at the Cervantes porphyry Au-Cu project in Sonora as well as its Tombstone CRD Ag-Pb-Au-Cu project in Arizona, USA.
  • Mexican Gold Corp., announced a non-brokered private placement to rise gross proceeds of up to $4M. Net proceeds will be used for exploration and advancement of its Las Minas project in Veracruz.
  • Silver One Resources Inc., announced a non-brokered private placement to rise gross proceeds of up to $2.5M.

 ON RESOURCES AND DEVELOPMENT

  • Fresnillo plc., announced that the construction of the phase II of its Piritas plant in Fresnillo mining district is in progress and is expected to be operating in H2, 2020 to process historical and continuous tailings. Fresnillo expects the Piritas plant to improve overall Au and Ag recoveries, thereby maximizing production in the Fresnillo district. It also projects that production total an average of 3.5M Oz Ag and 13K Oz Au per year once both phases operate at full capacity.
  • Industrias Peñoles S.A.B. de C.V., revealed its plan to put in operation its Capela (former Rey de Plata) polymetallic mine in Guerrero in Q3, 2019, with an investment of US$303M. Capela mining unit will have the capacity to mill and benefit 360,000 tonnes per year to produce an annual average of 4.7M Oz Ag, 89.6M Lb Zn, 19.3M Lb Pb, and 15.7M Lb Cu contained in Pb, Zn, and Cu concentrates.

ON DEALS AND CORPORATE ISSUES

  • Kootenay Silver Inc., granted stock purchase options to officers, directors, employees and consultants to purchase up to an aggregate of 8.45 M shares of Kootenay at a price of $0.14 per common share for a period of five years (Columba project, Chihuahua).
  • Azucar Minerals Ltd., granted stock options to certain directors, employees, and consultants to purchase and aggregate of 967,800 common shares at a price of $0.34 for a period of two years ( EL Cobre project, Veracruz).
  • Sonoro Metals Corp., reported results from its annual general meeting of shareholders (Cerro Caliche project, Sonora).
  • Santacruz Mining Ltd., acquired 50% interest in Carrizal Mining S.A. de C.V., by paying to the vendor US$0.5M, the forgiveness of approximately US$264K in debt owed by the Vendor to Carrizal; and other consideration in the aggregate amount of approximately US$680K, including the transfer of a life-insurance policy and three vehicles from Carrizal to the Vendor, valued at US$494K and US$180K respectively (Veta Grande project, Zacatecas).
  • Endeavour Silver Corp., announced a fatal accident at its Bolañitos mine in Guanajuato. A drill helper died while installing roof bolts in the Plateros section of the mine. Unfortunately, he was killed by falling rock when part of the roof collapsed.

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, Cu mineralization in a VMS prospect in Oaxaca, Mexico.  Photo by Miguel A Heredia.

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

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By Jorge Cirett

During the 26th week of the year (June 24th to June 30th, 2019), at least 43 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, a resolution by the Supreme Court is awaited to learn how the Mining Fund resources are to be allocated, if for social and environmental infrastructure (as planned) or as direct allocations to the people of the communities, the preferred method of the president (a method the opposition denounces as vote buying). In Sonora a local congressman introduced a bill for a new state tax on dirt extracted from open pits, a measure that if implemented is to pose a further weight in the already heavy fiscal load for mining companies in Mexico. Furthermore, the Economy Secretariat (Secretaria de Economia) published a letter stating that the “Protocol of Good Practice of Mining for the Public Consultation” (Protocolo de buenas practicas de la Minería para la consulta pública) is under review by the agency. It is not possible to underrate the importance of the review of this protocol, because if it is implemented incorrectly the result would impact fast and catastrophically the Mexican exploration industry. One of the more pressing issues is the fact that placing the consultation process before exploration takes place, would end most exploration in one swipe. If in doubt, just take a look to Oaxaca, where, although not being in the law you have to make the community consultation process before exploring, and the result is that hardly any exploration work is nowadays conducted in one of the states with the best mineralization potential in Mexico. Trust is hard to earn, let’s not throw it away so carelessly. ON EXPLORATION, In Zacatecas, Galore continues to drill at Dos Santos; Alien Metals updated on its exploration of Donovan 2 and Los Campos. ON MINING, Alien Metals released its financial results for 2018. ON FINANCING, Santacruz signed an agreement to extend the payment of a US$2.3 M loan. Galore is making a $1.5 M financing. Goldplay closed an oversubscribed financing for $1.37 M. Leagold completed a debt refinancing for a $200 M term loan and a $200 M revolving credit facility. ePower intends to conduct a private placement for Cdn$6 M. Sable granted 2.8 M incentive stock options. Alien Metals raised £350 K.  ON RESOURCES AND DEVELOPMENT, Mexus Gold  is to start leaching at Santa Elena, in Sonora. Telson reported significant underground channel sample results at Tahuehueto. Orla presented the result of the FS on Camino Rojo. Premier Gold presented results of its 42,000 m drilling campaign at Mercedes. Southern Silver file a technical report with updated resources on Cerro Las Minas. Santacruz presented results of drilling at Veta Grande. GoGold released results of drilling at Los Ricos. SilverCrest informed the decline has intersected the Babicanora vein at Las Chispas. Minera Alamos informed on the permitting of Santana. Almaden updated on permitting and legal issues at its Ixtaca project in Puebla. ON DEALS AND CORPORATE ISSUES, Millrock sold its Sonoran portfolio to Riverside. ePower Metals entered into a definitive agreement with Minera Alamos to acquire the Los Reyes project in Sinaloa. Silver Viper renegotiated much better terms on the lease of two properties within its La Virgina project in Sonora. Golden Minerals entered into an agreement under which Minera Autlan is to buy its Velardeña properties. Bacanora Lithoum signed an investment agreement and an offtake agreement with Ganfeng Lithium on its Sonora lithium project. Canasil and Pan American agreed on terms for the acquisition of Pan American of the Sandra Escobar project in Durango.

ON MEXICO ISSUES

  • The Economy Secretariat is awaiting the resolution of the Supreme Court on the change of rules to apply the Mining Fund, which this year is anticipated to be amounting to 3.2 billion pesos (3,200 millones) or approximately US$168.4 M. The proposal by the present Federal government (ie.- the president) is to deliver the resources directly to the people to “augment the capacities” of the mining communities. The aim would be to organize the community and the service providers to be part of the service chain for the mining industry. The resources on the Mining Fund to date are to be funneled according with the current rules, until a resolution by the Supreme Court clarifies the issue.
  • In Sonora, local congressman Carlos Navarrete from the Encuentro Social party (allied to the Morena party) introduced a bill for a new State tax on dirt extracted from open pits (includes waste, sand, dimension stone, clays, limestone, lime, among others). The US$0.63 tax per cubic metre of material would be split 80/20 between the municipalities and the State. The resources would be utilized in physical investments and infrastructure with social impact, in the environment and urban development (The bill intends to use the resources thus gathered in the same way that those of the Mining Fund were supposed to be used, and for which a 7% federal royalty tax was imposed on mining a few years ago. Now that the current president Andrés Manuel Lopez Obrador intends to use the resources of the Mining Fund for his preferred programs, allied politicians are trying to make the mining industry pay even more taxes).
  • The Economy Secretariat published a letter on the “Protocol of Good Practice of Mining for the Public Consultation”. In the letter the Economy Secretariat states that the protocol is under review by the agency. On the Letter: The consultation process is to be applied to all communities that can be impacted by the mining activity. Also, both exploration and exploitation should be consulted before their realization. The responsible authority is to be the Economy Secretariat, with aid by the Instituto Nacional de los Pueblos Indigenas and other authorities (SEMARNAT, CONAGUA, CFE, local municipal and state governments), as well as the state and federal Human Rights Commissions.

ON EXPLORATION

  • Galore Resources Inc. informed its 2,500 m diamond core drilling program at the El Alamo target of its Dos Santos project in Zacatecas continues to progress well. The first hole “intersected multiple zones of alteration and brecciation …… silicified and brecciated limestone similar to those observed on the surface over a much wider zone than was anticipated”.
  • Alien Metals Ltd. updated on its exploration activities at its Zacatecas properties Donovan 2, Los Campos and Don Celso. Sampling and mapping at Donovan 2 has resulted in high grade mineralisation in historic workings open along strike, and channel sample assays of up to 1.15% Cu and float samples of up to 0.45 gpt Au. Planned work includes a ground induced polarisation (IP) geophysical survey before the first phase of drilling. Surface mapping and sampling will be undertaken at Los Campos and Don Celso properties, as well as underground sampling and a geophysical survey at Los Campos.

ON MINING

  • Alien Metals Ltd. released its audited financial results for 2018. The company owns the Donovan 2, Los Campos, San Celso and La Africana projects in Zacatecas. The company held US$0.7 M in cash and cash equivalents by the end of the period.

ON FINANCING

  • Santacruz Silver Mining Ltd. reached an agreement to amend the repayment terms of the US$2.3 M short-term loan that it has borrowed from a private Bolivian mining company. The principal balance of US$2.3 million is now to be repaid by January 30, 2020. As consideration for the extension on the date of repayment Santacruz is to increase the issue of 2 M warrants to 2.5 M warrants (Veta Grande, Zacatecas).
  • Galore Resources Inc. is to commence a non-brokered private placement to raise gross proceeds of up to $1.5 M (Dos Santos, Zacatecas).
  • Goldplay Exploration Ltd. closed its over-subscribed previously announced financing, for gross proceeds of $1.37 M. A total of $28.9 K was paid and 231 K warrants were issued as a finder’s fee payment (San Marcial, Sinaloa).
  • Leagold Mining Corp. completed the debt refinancing with a syndicate of lenders that includes a $200 million term loan and a $200 million revolving credit facility. These loans have been used to replace $238 million of existing short-term debt, and will aid in the development of the Bermejal underground complex, the Guadalupe open pit and the CIL plant construction at it Los Filos mine in Guerrero.
  • ePower Metals Inc. intends to conduct a non-brokered private placement to raise up to Cdn$6 M (Los Reyes, Sinaloa).
  • Sable Resources Ltd. granted 2.8 M incentive stock options to certain officers, directors, employees and consultants of the company. Such options are exercisable at a price of $0.15 for a period of five years (Margarita and Vinata, Chihuahua).
  • Alien Metals Ltd. raised £350 K through the placement of shares (Donovan 2, Los Campos, Zacatecas).

ON RESOURCES AND DEVELOPMENT

  • Mexus Gold US. is to start leaching at its Santa Elena mine in Sonora (not to mistake for First Majestic’s Santa Elena mine, also in Sonora). Leaching is programmed to start on June 27th, with ore grading 1.8 gpt Au, 8 gpt Ag, to later on add ore @ 4 gpt Au, 12 gpt Ag. By September the company expects to be mining 3,500 tonnes per week.
  • Telson Mining Corp. reported significant channel sample assay results for underground mine development at its Tahuehueto project in Durango, where a 1,000 tonne per day mine is under construction. Highlighted results include: 2.42 m @ 5.76 gpt Au, 129 gpt Ag, 1.44% Cu, 3.8% Pb, 6.2% Zn; 5.50 m @ 3.31 gpt Au, 57 gpt Ag, 0.32% Cu, 0.9% Pb, 3.5% Zn; 5.38 m @ 4.41 gpt Au, 44 gpt Ag, 0.38% Cu, 1.5% Pb, 3.6% Zn; 7.0 m @ 5.12 gpt Au, 40 gpt Ag, 0.29% Cu, 1.0% Pb, 3.2% Zn; 6.45 m @ 5.69 gpt Au, 51 gpt Ag, 0.21% Cu, 2.3% Pb, 5.6% Zn; 4.42 m @ 8.70 gpt Au, 59 gpt Ag, 0.18% Cu, 1.7% Pb, 2.2% Zn; 4.08 m @ 9.27 gpt Au, 69 gpt Ag, 0.19% Cu, 0.6% Pb, 1.0% Zn; 3.56 m @ 7.95 gpt Au, 76 gpt Ag, 0.25% Cu, 3.3% Pb, 4.6% Zn. Individual assays are often above 5 gpt Au, and up to 28 gpt Au.
  • Orla Mining Ltd. presented the results of a feasibility study on its Camino Rojo Oxide project in Zacatecas. The main points include 18 K tonnes per day operation, with 44 M tonnes of ore to be put on the leach pad @ 0.73 gpt Au, 14.2 gpt Ag, containing 1 M Oz Au, 20.1 M Oz Ag. The expected recovery is 64% Au, 17% Ag, with an annual gold production of 97 K Oz Au at by-product cash cost $515 per Au Oz and an AISC of $576 per Au Oz. The after tax net present value (5%) is $142 M, with an after tax internal rate of return of 28.7% and a payback period of three years, all this in the case scenario of $1,250 per Au Oz price. The proven and probable mineral reserves stand at 44 M tonnes @ 0.73 gpt Au, 14.4 gpt Ag, whereas the measured and indicated resources amount to 353.4 M tonnes @ 0.83 gpt Au, 8.8 gpt Ag, containing 9.46 M Oz Au, 100.4 M Oz Ag. Inferred mineral resources are 60.9 M tonnes @ 0.87 gpt Au, 7.4 gpt Ag, containing 1.70 M Oz Au, 14.5 M Oz Ag.
  • Premier Gold Mines Ltd. presented exploration results of its 42,000 m drilling program at its Mercedes mine in Sonora. New mineralised veins have been confirmed at San Martin, opening the area 600 m to the west of the Lupita deposit. Drilling at San Martin returned multiple intercepts, including 7.2 m @ 4.64 gpt Au, 30 gpt Ag; 1.4 m @ 5.56 gpt Au, 38 gpt Ag. Ongoing delineation at Lupita includes intercepts of 3.9 m @ 10.3 gpt Au, 88 gpt Ag and 1.5 m @ 23.9 gpt Au, 71 gpt Ag. Exploration is to be activated at La Mesa area, adjacent to Agnico Eagle’s Santa Gertrudis project.
  • Southern Silver Corp. filed a NI-43-101 report with an updated mineral resource estimate for its Cerro Las Minas project in Durango (previously disclosed). The indicated resources amount to 11.1 M tonnes @ 105 gpt Ag, 0.1 gpt Au, 0.16% Cu, 1.2% Pb, 3.7% Zn, containing 37.5 M OZ Ag, 35 K Oz Au, 40 M Lb Cu, 303 M Lb Pb, 897 Lb Zn, Inferred mineral resources comprise 12.8 Mt @ 111 gpt Ag, 0.07 gpt Au, 0.27% Cu, 0.9% Pb, 2.8% Zn, containing 45.7 M Oz Ag, 31 K Oz Au, 76 M Lb Cu, 253 M Lb Pb, 796 M Lb Zn. “The overall objective of the 2019-20 exploration program is to continue to increase the existing resource base and to identify and drill test new epithermal vein systems within the larger claim package.”
  • Santacruz Silver Mining Ltd. released results from phase 1 of the current drilling program on the Veta Grande, Armados and Navidad veins on its Veta Grande project in Zacatecas. Highlighted true width intercepts comprise 0.55 m @ 761 gpt Ag, 0.2 gpt Au, 0.86% Pb, 1.84% Zn, 0.04% Cu; 1.94 m @ 65 gpt Ag, 0.75 gpt Au, 1.23% Pb, 3.84% Zn, 0.03% Cu at the Navidad vein; 2.40 m @ 227 gpt Ag, 0.88 gpt Au, 2.71% Pb, 2.64% Zn, 0.19% Cu; 1.59 m @ 280 gpt Ag, 0.61 gpt Au, 3.60% Pb, 3.24% Zn, 0.22% Cu.
  • GoGold Resources Inc. released results from two more diamond drill holes at its Los Ricos property in Jalisco. Highlighted intervals comprise 5.0 m @ 0.52 gpt Au, 161 gpt Ag; 6.3 m @ 2.14 gpt Au, 337 gpt Ag and 32.0 m @ 0.80 gpt Au, 179 gpt Ag, including 11.3 m @ 1.46 gpt Au, 348 gpt Ag. The 10,000 m HQ diamond drill program “is focused on defining the mineralized halo around the historical high grade ore shoots as defined by the underground workings and the 65 historical RC drill holes on the property”.
  • SilverCrest Metals Inc. informed the decline has intersected the Babicanora vein at the Las Chispas project in Sonora. The decline intersected the Babicanora vein and the newly identified Baby Vista vein, the first with 3.6 m true width and the second with 1.5 m true width. Additional highlighted infill results of the area 51 of the Babicanora vein include 7.6 m @ 26.6 gpt Au, 2,676 gpt Ag; 3.5 m @ 32 gpt Au, 3,417 gpt Ag; 5.6 m @ 13.6 gpt Au, 1,154 gpt Ag. The 51 in-fill drill holes totaling 18,488 m reported in this news release were “generally targeting mineralization on the outer edges of the current block model” have a weighted average true width of 2.2 m @ 7.17 gpt Au, 753 gpt Ag. An additional 40,000 to 50,000 m of infill and expansion drilling with 15 drill rigs on site focused on expanding mineralization and improving resource confidence. To date over 203,000 m of drilling have been sunk in the property. Ongoing work includes the Feasibility study expected in H1, 2020 development of the Babicanora Vein in Area 51 zone, stockpiling of high-grade material, an extensive metallurgical test program, geotechnical work and permitting for project development.
  • Minera Alamos Inc. received notification by SEMARNAT (Mexican environmental agency) confirming the successful completion of the technical review phase of the application (Estudio Tecnico Justificativo – “ETJ”) for the change of land use to allow the construction of mining and processing facilities at the Santana project area in Sonora. Phase 2 exploration will continue on the coming months, focusing to “demonstrate the potential of the project to host multiple “Nicho-style” mineralized systems that could be combined to supply feed material for an expanded regional production facility”.
  • Almaden Minerals Ltd. current focus at its Ixtaca property in Puebla relates to permitting and financing activities. “Review by Mexican authorities of Almaden’s environmental permit application (Manifestación de Impacto Ambiental, or “MIA”) continues in the normal course, and recently SEMARNAT, Mexico’s environmental authority, completed its public information meeting in the town of Santa Maria”. Almaden is engaged with several potential financing parties to secure funds for the development of the project. Regarding a decision by a lower court in Puebla State concerning Mexico’s mineral title system, Mexico’s Federal Congress, Senate, and Ministry of the Economy each filed appeals against the decision, as well as Almaden.

ON DEALS AND CORPORATE ISSUES

  • Ridgestone Mining Inc. entered into an agreement to acquire 100% interest in ten mining concessions adjacent to its Rebeico project in Sonora. The concessions cover 3,292 ha west of the Ridgestone claims, in an area with “numerous artisanal workings and mineralized outcrops”. Ridgestone has to make a $83 K payment and issue 5 M shares to the vendor.
  • Millrock Resources Inc. entered into an agreement to sell the La Union, Los Cuarentas, El Pima, El Valle and Llano del Nogal claim blocks to Riverside Resources Inc. The Santa Rosalia option from the Los Cuarenta project will also be transferred. The deal, that includes a geological database and exploration equipment, involves Riverside paying $35 K and issuing 150 K shares to Millrock, as well as a 0.5% net smelter royalty (NSR) on the El Pima and El Valle claims, and in the Santa Rosalia option.
  • ePower Metals Inc. entered into a definitive agreement with Minera Alamos Inc. and Vista Gold Corp. under which ePower has the right to earn 100% interest in the Los Reyes project in Sinaloa. In connection with the Transaction, the Company intends to change its name to “Prime Mining Corp.”, and will focus its resources on the immediate development of Los Reyes. ePower has to complete a $1.5 M cash payment to Minera Alamos, and assume the remaining option payments to Vista Gold of US$1.5 M on October 2019 and US$1.5 M on October 2021, as well as issuing Minera Alamos 9.45 M post-consolidation shares and 3.35 M warrants. ePower has to consolidate its common shares capital on a two-for-one basis and complete a financing of at least Cdn$6 M. The Los Reyes project has an historical estimate of 427.2 K Oz Au, 7.5 M Oz Ag in indicated resources and 196.7 K Oz Au, 4.8 M Oz Ag of inferred resources.
  • Silver Viper Minerals Corp. renegotiated the terms of the Rubi-Esperanza option agreement to purchase three mineral concessions within its La Virginia project in Sonora. The overall agreement reduced the total cash payments from $4.49 M to $3 M, augmented in one year the term of the option and crucially reduced the amount on the first three payments by $1.46 M, enabling Silver Viper to direct maximum expenditures to advancing the project. According to the new agreement the company has to pay US$50 K on June 2019 (paid), US$75 K on June 2020, US$100 K on June 2021, US$200 K on June 2022 and US$2.575 M on June 2023. A 2% NSR can be purchased for US$2 M within 5 years of the original agreement remains unchanged. “Surface geochemistry and prospecting have identified targets to the north, south and east of the El Rubi discovery (6 m TW @ 3.16 gpt Au, 228 gpt Ag) which will be tested during the next phase of drilling. In addition, Silver Viper has contracted Geotech Ltd. to conduct a 720 line-kilometer magnetic and radiometric survey over the El Rubi and La Gloria targets for a total coverage of 4,900 hectares”.
  • Golden Minerals Co. entered into an agreement to sell its Velardeña properties to Compañía Minera Autlán S.A.B. de C.V. for $22 M. The deal comprises the Velardeña properties, including the Velardeña and Chicago mines (currently in care and maintenance) and other adjacent exploration properties, and the lease agreement under which Golden Minerals has the oxide plant with Hecla thorough 2020. The proposed transaction also would include the sale of the Rodeo and the Santa Maria project concessions. Upon execution of this agreement, Autlan paid a deposit of US$1.5 million to Golden Minerals, which will be applied to the purchase price upon closing.
  • Bacanora Lithium PLC. signed an investment agreement and off-take agreement with Ganfeng Lithium Co. (a key player in the lithium industry globally). Once completed this agreement would form a major part of the financing package needed to develop the initial 17,500 tonnes per year production of lithium carbonate. The £14.4 M strategic investment provides Ganfeng with 29.99% of Bacanora, pre-emption rights and a director on the board. Another project level investment of £7.56 M in Sonora Lithium Ltd. (the holding company of the project) accrues Ganfeng 22.5% of the holding company, with an option to increase its interest to 50% within 24 months and the appointment of a director to the board. GFL will provide a plant and process commissioning team to assist Bacanora in delivering first production in 2021.
  • Canasil Resources Inc. and Pan American Silver Corp. signed the definitive agreement under which Pan American has the right to acquire Canasil’s interest in the Sandra Escobar project, in Durango. The transaction was closed for a payment of CDN$2 M and grant of a 2% NSR, with Pan American being able to buy 1% of the NSR by the payment to Canasil of CDN$4 M.

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, conglomerate with well-rounded quartz vein and silicified rock fragments in the coastal plain in Veracruz. Picture by Jorge Cirett.

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