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

By Jorge Cirett

During the 12th week of the year (March 18th to March 24th, 2019), at least 20 press releases were announced by companies working in Mexico.  ON MEXICO ISSUES, a worrisome statement from the Mexican president regarding the mining concessions makes evident the need to augment the interaction of the mining industry with all levels of government. ON EXPLORATION, in Sonora, Riverside Resources disclosed initial results from exploration work at its recently staked Sandy project; In Chihuahua, Sable released exciting drill results from its Margarita project; Kootenay presented results from surface sampling at its Mecatona property; Evrim and Harvest Gold released final drill results from Cerro Cascaron; Silver Spruce is defining shallow targets for an incoming drill program. In Durango, Gainey Resources indicated that the main vein system at its Las Margaritas project is over 3 Km long. In Veracruz, Azucar Minerals presented long and favorable results from one more hole at El Cobre.  ON MINING, Torex Gold paid US$11.9 M in taxes during 2018. Excellon reported financial results for Q4 and full year 2018. ON FINANCING, Sonoro Metals is to undertake a financing round to raise up to $650 K. First Majestic is to extend its share repurchase program. Solaris Copper closed a C$3.9 M placement. ON RESOURCES AND DEVELOPMENT, Almaden Minerals. Issued a Report on Corporate Social Responsibility for its Ixtaca project in Puebla, and submitted an environmental report for permitting. VVC Exploration updated its resource estimate for the Samalayuca project in Chihuahua. Gold Resource reported on a high-grade result from sampling a new crosscut during development at its El Aguila project in Oaxaca. ON DEALS AND CORPORATE ISSUES, Silver One hired Strata-Star Group for investor relations.

ON MEXICO ISSUES

  • On a worrisome statement for the Mexican mining industry, during one of his daily press conferences the president of Mexico, Andres Manuel Lopez Obrador, expressed that although no mining concession is to be revoked, no more mining concessions are to be granted. The only requisites are that mining companies, “specially the Canadian ones”, conduct a clean mining operation, that miners are well paid and that they pay the same tax rates than in Canada. He added that the concessions delivered by past governments in the last 36 years were about 40 to 50 M hectares, meaning 30% of the national territory “and they wouldn’t finish with it in a thousand years”.
  • Note from editor. In the view of this letter editor, the president words express a lack of knowledge about the rigid guidelines under which exploration and mining international companies, and Canadian ones in particular, obtain financing, explore, interact with the communities, develop, mine and reclaim the used land. On his other remarks, mining companies pay salaries above average in Mexico, and if Canadian companies followed the Mexican president words, they would be paying fewer taxes, not more. Mexico needs more land under mining concessions, not less, as these concessions, besides paying hefty duties,  are the basis for investments that feed a long chain of service providers that benefit hundreds of thousands of Mexicans. It is clear and evident that we, as part of the mining industry, need to invest the time and resources to educate the different levels of government about the benefits of mining.  

ON EXPLORATION

  • Gainey Resources Capital Corp. reported that mapping and sampling of its newly-optioned Las Margaritas project in Durango has extended the strike of the main vein system to 3.5 Km, collecting grab samples with assays of up to 73.7 gpt Au. The best mineralization is along a 1,750 m section where 15 of 25 samples assayed more than 1 gpt Au, and six of those more than 5 gpt Au. “Gold mineralization occurs within druzy quartz veins, veinlets and stockworks with up to 3% disseminated pyrite”, with variable widths of up to two metres.
  • Evrim Resources Corp. along with exploration partner Harvest Gold Corp., released final results from the recently finished ten-hole drill program at its Cerro Cascaron project in Chihuahua. Highlighted results comprise: At Serpiente Dorada, 1.0 m @ 20.10 gpt Au, 22.5 gpt Au, within 6.5 m @ 3.29 gpt Au, 6 gpt Ag; 11.5 m @ 0.48 gpt Au, 4 gpt Ag and 1 m @ 1.57 gpt Au, 1 gpt Ag. At San Pedro, 4.8 m @ 1.02 gpt Au, 13 gpt Ag; 0.35 m @ 5.39 gpt Au, 24 gpt Ag; 2.4 m @ 0.98 gpt Au, 37 gpt Ag.
  • Sable Resources Ltd. released results from two more drill holes collared at its Margarita project in Chihuahua. Highlighted core length results comprise: 20.6 m @ 83 gpt Ag, 0.08% Zn (or 102 gpt AgEq), including 5.1 m @ 222 gpt Ag, 0.47% Zn (or 252 gpt AgEq) in one drill hole and 48.65 m @ 102 gpt Ag, 0.43% Zn, 0.1% Pb (or 130 gpt AgEq), including 1.0 m @ 198 gpt Ag, 0.30% Zn, 0.18% Pb (or 222 gpt AgEq) and 2.85 m @ 376 gpt Ag, 0.75% Zn, 0.28% Pb (or 428 gpt AgEq) and 2.6 m @ 156 gpt Ag, 3.09% Zn, 0.72% Pb (or 351 gpt AgEq) in the other hole. All intercepts are between 47 and 98 m from the surface.
  • Kootenay Silver Inc. released results from exploration at its Mecatona property in Chihuahua. Assays of 51 surface samples on a 200 m by 400 m zone of pervasive skarn-altered Lower Cretaceous turbidites of the Mezcalera Group returned an average of 110 gpt Ag, 1.7% Cu, with 12 of the 51 samples grading >100 gpt Ag. “Mineralization associated in the new zone is oxidized to assorted limonites with most of the copper mineralization hosted in the limonites. Depth of oxidation remains unknown. Mineralization occurs as a range of textures that includes bedding replacement, fracture/stockworks and disseminations, patches and hairlines. Quartz veins are not common with one dump sample showing anomalous gold (0.84 gpt), silver (373 gpt) and 16% lead and zinc. One location of unoxidized material, from an underground working showed chalcopyrite, bornite, arsenopyrite, pyrrhotite, galena, sphalerite in quartz and carbonate fracture/vein/gash system. The skarn is all fine grained marked by dense hard white to greenish beddings with local garnets and marble noted“.
  • Silver Spruce Resources Inc.  informed it is currently defining shallow drill targets for a 1,500 m program at its Pino de Plata project in Chihuahua. At El Terrero, a target comprises a zone of disseminated epithermal mineralization in igneous rocks within 15 hectares of strong argillic to advanced argillic alteration, where high Ag and anomalous Au, Pb, Zn, Cu results have been obtained. At Theodora, veins with high Ag and anomalous Pb, Zn, Cu are to be tested, whereas the Santa Elena Gossan area is a replacement Ag-Pb-Zn-Cu target.
  • Azucar Minerals Ltd. reported results from one more drill hole of its ongoing program at its El Cobre project in Veracruz. The drill hole was collared on the Norte zone, where it cut 253.5 m @ 0.72 gpt Au, 0.30% Cu (from 373.50 to 627.00 m); including 64.5 m @ 1.1 gpt Au, 0.40% Cu; and 44.5 m @ 1.34 gpt Au, 0.47% Cu and 13.0 m @ 2.04 gpt Au, 0.70% Cu. Other deeper intervals between 638 and 732 m comprise 14.65 m @ 0.73 gpt Au, 0.28% Cu, and 53.10 m @ 1.00 gpt Au, 0.40% Cu.
  • Riverside Resources Inc. disclosed initial results from its recently staked Sandy project in Sonora. Sampling of the structures in the strongly foliated granitic intrusive rocks returned gold values of up to 38.8 gpt Au, associated to a set of felsic dikes. “Silicification and minor quartz veining is noted associated with the structures and with through-going vein mineralization. The wall rock associated with these structures often shows sericitic and silica alteration”.
  • Sable Resources Ltd. Released assay results from one more drill hole from the current drilling campaign at its Margarita project in Chihuahua. The highlighted intervals comprise 12.50 m @ 63 gpt Ag, 0.14% Zn, 0.05% Pb (or 73 gpt AgEq), including  4.80 m @ 126 gpt Ag, 0.24% Zn, 0.10% Pb, and a second interval of 12.80 m @ 97 gpt Ag, 1.19% Zn, 0.36% Pb (or 176 gpt AgEq), including 1.90 m @ 213 gpt Ag, 4.52% Zn, 1.81% Pb (or 529 gpt AgEq).

ON MINING

  • Torex Gold Corp. informed of the payment of US$11.9 M on taxes from its mining activities in 2018 (El Limon-Los Guajes, Guerrero)
  • Excellon Resources Inc. reported financial results for the last quarter and full year 2018. During the year Excellon had $24.3 M of revenue, producing silver at cash cost $9.48 per ounce and an AISC of $20.69 per ounce. Also during the year, at its Platosa mine in Durango, 57.5 K tonnes were mined, 81 K tonnes processed (24 K tonnes from stockpiles) @ 391 gpt Ag, 3.88% Pb, 5.42% Zn, recovering 89.2% Ag, 79.4% Pb, 80.8% Zn, to produce 917.7 K Oz Ag, 5.45 M Lb Pb, 7.89 M Lb Zn (or 1.93 M Oz AgEq). The company also informed on a concentrate theft scheme from 2016 to October 2018 involving material in transit from Miguel Auza in Zacatecas to the port in Manzanillo, Guerrero. It is estimated that said scheme impacted revenues by approximately 10% per year.
  • Impact Silver Corp. entered into a concentrate sales contract with Samsung CT Corp. for off take from the Royal mines of Zacualpan, Estado de Mexico. “Based on current production of 400 tonnes per day, 2019-2020 sales of silver lead-zinc concentrate should top 800,000 ounces silver with revenues over 95% attributable to pure silver (no equivalents)”.

ON FINANCING

  • Sonoro Metals Corp. intends to undertake a non-brokered private placement with the aim of raising up to $650K (Cerro Caliche, Sonora).
  • First Majestic Silver Corp. informed it has extended its share repurchase program for another 12 months. The program proposes to repurchase up to 5 M common shares, or 2.5% of the outstanding shares of the company (Six operating mines in Mexico).
  • Solaris Copper Inc. closed a C$3.9 M non-brokered private placement financing, with no fees or commissions paid (60% interest on La Verde, Michoacan).

ON RESOURCES AND DEVELOPMENT

  • Almaden Minerals Ltd. informed of the issuing of a Report on Corporate Social Responsibility describing the community-related activities in which the company has engaged for over 15 years at the Ixtaca project in Puebla. Also, an environmental permit (Manifestación de Impacto Ambiental) has been submitted to Mexican authorities, including within it topics like water usage, tailings process details and acid drainage evaluation.  
  • VVC Exploration Corp. disclosed and updated resource estimate for its Samalayuca property in Chihuahua. With a 0.30% Cu cut-off, the indicated resources comprise 3.16 M tonnes @ 0.42% Cu and the inferred resources 4.68 M tonnes @ 0.44% Cu, containing 13,375 tonnes Cu and 20,683 tonnes Cu respectively.
  • Gold Resource Corp. reported that ongoing development work at its mirador mine (in its El Aguila property in Oaxaca) crosscut 6 m of the Independencia vein, which assayed 992 gpt Ag, with the opposite wall assaying 5 m @ 572 gpt Ag. Earlier drilling result of this area included 13.3 m @ 1,055 gpt Ag and 2.70 m @ 1.67 gpt Au, 901 gpt Ag.

ON DEALS AND CORPORATE ISSUES

  • Silver One Resource Inc. entered into an investor relations agreement with Strata-Star Group, LLC. “Strata-Star will provide investor relations services to Silver One including communicating with members of the financial community as well as shareholders”.

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 above, chalcopyrite crystals in a quartz druse from a project in Michoacan. Picture by Jorge Cirett.

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

By Jorge Cirett

During the 10th week of the year (March 4th to March 10th, 2019), at least 16 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, The cancellation of the Los Cardones project in Baja California Sur was announced by the president of Mexico. According to the Fraser Institute, Mexico climbed several positions on its ranking, although security and taxation remain dragging down its overall ranking. On PDAC’s Mexico Mining Day, the participation of Francisco Quiroga, Pedro Haces and the governors of Durango and Sinaloa left a bittersweet message, as an invitation for investment was mixed with the government impulse for community consultations, the reviewing of mining concessions, labor issues and environmental revisions.   ON EXPLORATION, In Sonora, Sonoro Metals commenced a second phase of RC drilling at its Cerro Caliche property. In Chihuahua, Radius Gold informed is working on a revised geological model of the previous drilling campaign as it prepares for the next at the Amalia project. In Durango and Veracruz. Chesapeake Gold is to focus its 2019 exploration program in properties near its flagship Metates project, and in the Tatatila project in Veracruz. ON MINING, Americas Silver, Avino Silver and Premier gold reported operating and/or financial results for the Q4 and full year 2018. ON FINANCING, Minera Alamos corrected a previous financing press release, Kootenay Silver increased the size of its placement to $7 M. McEwen Mining suspended distribution of its dividend. Mako Mining raised CAD$4.5 M. ON RESOURCES AND DEVELOPMENT, Mag Silver reported on 46,000 m of drilling and the discovery of a new vein trend at Juanicipio, in Zacatecas. ON DEALS AND CORPORATE ISSUES, Oroco informed on the status of legal actions regarding its intention to acquire the Santo Tomás project in Sinaloa. Alio Gold changed CEO and Great Panther Silver Ltd. changed its name to Great Panther Mining Ltd. as it diversifies into gold mining.

ON MEXICO ISSUES

  • The Durango and Sinaloa governors, Jose Rosas Aispuro and Quirino Ordaz, respectively, attended the PDAC convention in Toronto, looking to strengthen the ties with Canadian companies and promote investment in the local mining sector.
  • The president of Mexico, Andres Manuel Lopez Obrador, announced the cancellation of the Los Cardones open pit mining project in Baja California Sur (on the bright side, the cancellation could be the result of negotiations with the project owner, which has multiple government contracts in other industries. On the other hand, the president said he took the decision because he has the authority to do so).
  • The Fraser institute released its annual survey on mining jurisdictions of the World, Mexico climbed several positions to reach the 29th on the ranking, from the 44th on the previous year. Our Latin American competitors on the foreign investment race, Chile and Peru, also raised to the 6th (from the 8th) and 14th (from the 91th) position respectively. The categories on which Mexico can improve significantly are: “Disputed Land Claims” (58th position), “Socioeconomic Agreements/Community Development” (59th position), “Labor Regulations” (58th position), Security (80th position, regrettably) and “Taxation Regime” (71st position, just 13th places from the bottom). To download the report: https://www.fraserinstitute.org/sites/default/files/annual-survey-of-mining-companies-2018.pdf.
  • In PDAC, Francisco Quiroga, undersecretary of Mining on the Secretaría de Economía (Ministry of Economy) asked Canadian mining companies to accept public consultations to avoid harmful effects on society and the environment. He also solicited fiscal observance, environmental protection and human rights respect by the companies to avoid the closure of mines. He offered an administrative simplification to miners by the implementation of a sole attention desk to reduce paperwork.
  • Also in PDAC, and during the Mexico Mining Day, Pedro Haces Barba (Morena senator) stated that Canada is a strategic partner on the mining sector. He expressed the Congress and Senate support to stimulate the development of the industry, giving form to a legal framework in the leading edge, with the participation of experts, producers, environmentalists, workers and all other involved. Haces also stressed the compromise to impulse significant changes to the mining law to benefit from the sustainable exploitation of natural resources in pace with the regional dynamics and global challenges.  

ON EXPLORATION

  • Radius Gold Inc. informed on the review and re-logging of five holes drilled to test the Campamento structural corridor (now called San Pedro) at its Amalia project in Chihuahua. Only the deepest hole intercepted the structure within the lower volcanic group andesitic rocks, returning 26 m @7.1 gpt Au, 517 gpt Ag, including 5 m @ 14.7 gpt Au, 517 gpt Ag. Access agreements with landowners have been secured, and a new environmental permit has been applied for the second drill stage. Pan American Silver is funding the project with Radius as the operator.
  • Sonoro Metals Corp. commenced the phase two drilling campaign at its Cerro Caliche property in Sonora. This 4-month program is to consist of approximately 5,000 m of reverse circulation drilling. The goal is to enlarge the gold mineralization inventory, test deeper zones and extend the high-grade gold intercept at El Colorado zone, which returned 12.2 m @ 11.21 gpt Au. If results support it, a phase 3 drilling campaign of approximately 7,000 m of infill drilling will follow. “The Company anticipates that it will commission and publish an NI 43-101 technical report, including an initial resource estimate, within two months”.
  • Chesapeake Gold Corp. informed this year its exploration programs will focus on the under-explored region of its Metates project in Durango. At Crisy, close to Metates, a quartz breccia and stockwork that runs for over 2 km hosted in shales, produced 24 m @ 1.5 gpt Au; 13 m @ 1.1 gpt Au, 14 gpt Ag; 4 m @ 2.5 gpt Au, 49 gpt Ag, in channel samples. At Cerro Pelon, Durango, a 3 km long, 750 m wide zone of epithermal veins and stockworks returned 40 m @ 42 gpt, 0.2 gpt Au; 25 m @ 57 gpt Ag; 15 m @ 1.0 gpt Au in surface sampling. At San Javier, Durango, “Silver mineralization is hosted within clay altered sandstone, mudstone and local intrusive dikes and has been traced continuously on surface for over 500 meters. Previous samples returned 60 meters of 71 g/t silver and 0.6% lead. In January, a trench channel sample collected 200 meters further along strike returned 25 meters of 46 g/t silver and 0.5% lead”. At Yarely, Sinaloa, A channel sample returned 30 m @ 1.6 gpt Au, 38 gpt Ag, on quartz breccias and stockworks associated to a rhyolite flow-dome complex. At Tatatila, in Veracruz, skarn bodies developed along the contact of intrusive dikes and sills and older limestones returned 2 m @ 28.9 gpt Au, 0.5% Zn; 6 m @ 0.4 gpt Au, 5.6% Zn; 2 m @ 0.14 gpt Au, 65 gpt Ag, 2.3% Pb, 3.1% Zn.

ON MINING

  • Americas Silver Corp. reported consolidated financial and operational results for the fourth quarter and full year 2018. The company had a revenue of $68.4 M from its operations in Mexico and the USA, without entering in details by unit (Cosalá Complex, Sinaloa).
  • Avino Silver & Gold Mines Ltd. announced consolidated financial results for the fourth quarter and year 2018. During the year revenues were $34.1 M from 708.8 K tonnes milled to produce 1.28 M Oz Ag, 8,092 Oz Au, 4.81 M Lb Cu or 2.86 M Oz AgEq, at cash cost $9.63 and AISC $10.67 (Avino, San Gonzalo mines, Durango).
  • Premier Gold Mines Ltd. released operating results for Q4 and full year 2018, including figures from its operations in Mexico. At Mercedes, in Sonora, during the last three months of the year 183.1 K tonnes were milled @ 3.96 gpt Au, 44.8 gpt Ag, recovering 96.3% Au and 45.2% Ag, to produce 22,465 Oz Au, 119 K Oz Ag. For the year, 665.5 K tonnes were milled @ 3.34 gpt Au, 35.3 gpt Ag, recovering 96% Au, 40.9% Ag to produce 68,719 Oz Au, 309.2 K Oz Ag. By product cash cost and AISC were $609 and $795 per Au Oz, respectively. “Exploration drilling continued during the fourth quarter with 1,972 meters completed for a total drilling of 40,721 meters for the year”.  

ON FINANCING

  • Minera Alamos Inc. issued a correction to its previous press release, where it stated $4.93 M of gross proceeds on a non-brokered placement. In fact, Minera Alamos raised aggregate proceeds of $4.99 M, paying $280 K in commissions (La Fortuna, Durango; Santana, Sonora).
  • Kootenay Silver Inc. increased the size of its non-brokered private placement, originally for gross proceeds of $2.5 M, to $7 M (La Negra, Sonora; La Cigarra, Chihuahua).
  • McEwen Mining Inc. suspended the distribution of its dividend, stating lower revenues from operating issues at a couple of mines as the cause (El Gallo, Sinaloa).
  • Mako Mining Corp. closed its non-brokered private placement for gross proceeds of CAD$4.5 M (Trinidad, Sinaloa)

ON RESOURCES AND DEVELOPMENT

  • Mag Silver Corp. reported on results from a 48-hole diamond drilling program with a total of 46,060 m completed in late 2018 at the Juanicipio JV property (Fresnillo PLC 56% / Mag Silver 44%), designed to expand and infill the wide high-grade deep zone mineral resource. The program confirmed continuity to depth of high-grade mineralization in the East and West Valdecañas vein deep zones and in the Anticipada vein, discovering the new Pre-Anticipada vein in the hangingwall above the system. Highlighted intercepts include 11.6 m @ 783 gpt Ag, 2.57 gpt Au, 6.5% Pb, 9.5% Zn, 0.32% Cu at the deep west zone; 6.3 m @ 246 gpt Ag, 1.78 gpt Au, 7.2% Pb, 11.6% Zn, 0.40% Cu at the deep zone east; 6.2 m @ 275 gpt Ag, 4.02 gpt Au, 7.3% Pb, 9.2% Zn at the Anticipada vein; 3.2 m @ 472 gpt Ag, 0.31 gpt Au, 0.4% Pb, 0.4% Zn, 0.03% Cu at the Pre-Anticipada vein.
  • Mag Silver Corp. announced the discovery of the northeast trending Venadas vein at the Juanicipio property in Zacatecas. The vein was inferred from the alignment of fifteen previously unconnected intercepts before being cut in an underground development working as a 1.1 m vein @ 116 gpt Ag, 3.16 gpt Au. The first hole designed to test the Venadas vein cut 3.0 m (core length) @ 392 gpt Ag, 5.54 gpt Au. “Venadas is the first ever mineralized vein in the overall Fresnillo District oriented at a high angle to the historically mined NW oriented veins. Notably, other much larger NE structures with intense surface alteration are known farther afield within the Juanicipio property and are now priority exploration targets. None have ever been directly drilled.”

ON DEALS AND CORPORATE ISSUES

  • Oroco Resource Corp. informed on the legal actions being taken to acquire interest in the Santo Tomás project in Sinaloa. “At present, the following initiatives, amongst others, are expected to validate and maintain the status quo of the titles and eventually remove any unwarranted ownership claims to the Santo Tomas Concessions as are currently being made by Aztec Copper Inc., an Arizona company, and its Mexican subsidiary, Prime Aztec Mexicana S.A de C.V.” (Santo Tomas, Sinaloa).
  • Alio Gold Inc. informed its chief executive officer, Greg McCunn is resigning to pursue other opportunities. The board of directors appointed Mark Backens as CEO, position which he has served previously on an interim basis (San Francisco, Sonora).
  • Great Panther Silver Ltd. completed the acquisition of Beadell Resources Ltd., owner of the Tucano mine in Brazil, with 1.3 M Oz Au in reserves. As part of the evolution in strategy, the company name has been changed to Great Panther Mining Ltd (Topia, Durango).

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 above, weathered intrusive rock with oxidized quartz-sulphide veinlets in a Michoacán project. Picture by Jorge Cirett.

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

By Jorge Cirett

During the 8th week of the year (February 18th to February 24th, 2019), at least 31 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, The first declaration of liberties for the year was issued on February 19th. ON EXPLORATION, In Baja, One World Lithium is to drill the Salar del Diablo property. In Chihuahua, Valterra presented the exploration plan for Los Reyes Cu-Au project. In Coahuila, Prize Mining presented drilling results from its Manto Negro Cu project. ON MINING, Mc Ewen Mining, Torex Gold, Coeur Mining, Argonaut Gold, Pan American Silver and Hecla presented Q4 and full year 2018 production or financial results. Camrova presented mining details from El Boleo in Baja. Mako Mining has recommenced mining activities at La Trinidad in Sinaloa. Magellan Gold processed third-party’s ore on its mill. ON FINANCING, Mexican Gold presented, and then withdrew, for an extension on the date for warrants exercise. Alamos Gold augmented its annual dividend. Solaris Copper is considered a public corporation. Mako Mining is undertaking a financing round of up to CAD$4.5 M. ON RESOURCES AND DEVELOPMENT, Impact Silver is drilling other veins in Zacualpan. Minera Alamos is still selling gold from the pilot plant at Santana, in Sonora. Alamos Gold and Pan American Silver presented updated resources for its properties. Silver Bull is to perform a new drilling round at Sierra Mojada, Coahuila. Goldplay is finding mineralization on trend of its resource at El Magistral, in Sinaloa. Telson reported on development of Tahuehueto, in Durango.  ON DEALS AND CORPORATE ISSUES, Riverside entered into a definitive agreement with Sinaloa Resources on La Silla project, in Sinaloa. Aztec Minerals and Aloro Mining appointed senior figures for its business and technical advisory committees. Pan American Silver completed the acquisition of Tahoe Resources.  

ON MEXICO ISSUES

  • The first declarations of liberties (or open ground for staking) for the year was released on February 19th. The 95 concessions on several states will be open for staking at 10:00 am, 30 days after the date of publication on the official gazette (Diario Oficial de la Federación).

ON EXPLORATION

  • One World Lithium Inc. signed a contract to drill 4,200 m of reverse circulation holes on its Salar del Diablo property in Baja California. The program includes 12 holes varying between 150 and 500 m of depth to test three geophysical highly conductive zones and two geochemical surface sampling anomalies.
  • Prize Mining Corp. presented drilling results from its Manto Negro project in Coahuila. Mineralized intercepts include 4.4 m @ 1.02% Cu, 28 gpt Ag; 3.55 m @ 1.69% Cu, 28 gpt Ag at Manto Negro; 4.10 m @ 0.88% Cu, 49 gpt; 3.40 m @ 1.58% Cu, 122 gpt Ag; 4.05 m @ 0.82% Cu, 55 gpt Ag; 1.0 m @ 1.43% Cu, 126 gpt Ag; 2.90 m @ 0.72% Cu, 24 gpt Ag; 2.05 m @ 0.76% Cu, 33 gpt Ag; 6.05 m @ 1.29% Cu, 77 gpt Ag; 1.05 m @ 3.23% Cu, 135 gpt Ag; 3.80 m @ 1.62% Cu, 143 gpt Ag at Pilar Grande; 6.75 m @ 0.75% Cu, 9 gpt Ag; 1.20 m @ 0.71% Cu, 13 gpt Ag at La Cuchilla, and 1.10 m @ 1.21% Cu, 26 gpt Ag; 1.50 m @ 1.24% Cu, 102 gpt Ag at El Pilon. At El Granizo, a 150 m log by 50 m wide zone contains a 2-4 m thick horizon of copper oxide mineralisation, but is disrupted by strong faulting. At Pilar Grande, drilling probed mineralisation on a longitude of 180 m, but further testing is problematic due to strong topographic relief. The British Columbia Securities Commission lifted the cease trade order issued on Prize Mining after the company complied on the presentation of its 2018 annual filings.
  • Valterra Resource Corp. has received permits for exploration at its Los Reyes Cu-Au property in Chihuahua, Mexico. The exploration program for 2019 includes surface mapping and sampling to be followed by an 8-10 km line-km IP geophysical program and a 2,500 diamond drilling program in 8 holes to test a 600 m strike length of the Cu-Au skarn. “The company is initially targeting a five to ten million tonne, shallow high grade Cu-Au resource localized along the strike length of the exposed skarn zone“.  

ON MINING

  • Camrova Resources Inc. provided an update on mining at El Boleo, Baja California, property on which it has a 7.24% interest. On administration, the CEO and chairman were appointed. On financing, a US$713.1 M comes due in 2019 and will need refinancing. On mining, underground mine production was 440 K tonnes @ 1.18% Cu (558 K tonnes @ 1.21% Cu budgeted for the period). The forecast for 2019 is 654 K tonnes @ 1.26% Cu. Open pit mine production on 2018 was 2,215 tonnes @ 0.93% Cu (2.06 M tonnes @ 1.19% Cu budgeted for the period) and the forecast for 2019 is 2.35 M tonnes @ 0.87% Cu. Ore delivered to the plant in 2018 was 2.81 M tonnes @ 0.95% Cu, to produce 19,438 metric tons of copper, 226 tons of cobalt, 452 tons Zn, averaging recoveries of 77.5% Cu, 15.8% Co, 1.6% Zn. Minera y Metalúrgica del Boleo, S.A.P.I. de C.V. has a $303.4 K debt with Camrova, and has been served with a judicial notice demanding the payment.
  • Mako Mining Corp. owns 100% interest on the La Trinidad property in Sinaloa, as result of the acquisition of Marlin Gold Mining Ltd. After Hurricane Willa hit the mine installations on October of last year, operations were halted due to the inundation of the pit. Dewatering of the Taunus pit is near completion and mining has recommenced. Crushing and stacking on the leach pad is ongoing, and this month to date over 71 K tonnes @ 1.22 g/t gold has been mined.
  • McEwen Mining Inc. Reported fourth quarter and full year 2018 results, including information on its Mexican operations. At El Gallo in Sinaloa, 5,632 Oz AuEq were produced on the quarter, and 39,105 on the year, at cash cost $733 and AISC $771. El Gallo 2019 production guidance is 13,000 gold ounces at cash costs and AISC per GEO of $875 and $915, respectively. These ounces are derived from residual heap leaching activities that are ongoing and will continue for several years.
  • Torex Gold Resources Inc. presented its yearly production report 2018. During the last quarter Torex delivered 96,316 Oz Au, reaching 353,947 Oz Au produced on the year. This was achieved by the mining of 32.6 M tonnes, or 93,214 tonnes per day (tpd), of which 4.33 Mt @ 2.69 gpt Au were ore. The plant processed 4.15 Mt at a rate of 13,011 tpd @ 2.97 gpt during the year, with a recovery of 85% Au, a cash cost of $646 per Oz Au and AISC of $964 per Oz Au.
  • Coeur Mining Inc. reported fourth quarter and full year 2018 financial results, including figures from its operations in Mexico. At Palmarejo, in Chihuahua, 1.38 M tons were milled @ 202 gpt Ag, 3.11 gpt Au, recovering 83.8% Ag and 88.9% Au, to produce 7.52 M Oz Ag, 122,722 Oz Au during the year. On the 4Q, 378.4 K tonnes were milled @ 185 gpt Ag, 2.49 gpt Au, recovering 84.0% Ag and 97.6% Au, to produce 1.89 M Oz Ag, 31,239 Oz Au. During the year over 74,500 m were drilled on the property. Coeur will no longer provide guidance or final reporting on all-in-sustaining cost (AISC), and is using the figure of “CAS” (costs applicable to sales), which is here interpreted as cash cost per silver ounce. Given these considerations, Palmarejo produced at a cash cost of $8.46 per AgEq ounce (the lowest on its international portfolio).
  • Argonaut Gold Inc. disclosed its financial and operating results for the fourth quarter and year 2018. During the year Argonaut had $196.1 M of revenue, an increase of $41 M. on the prior year. At El Castillo Complex (El Castillo and San Agustin mines), in Durango, 15.52 M tonnes of waste and 16.18 M tonnes of ore were mined at a rate of 87 K tonnes per day (tpd) with a waste/ore ratio of 0.96.  A total of 9.17 M tonnes of ore were crushed and piled on the leach pads, at a grade of 0.38 gpt Au, producing 113,180 Oz Au and 276,272 Oz Ag at cash cost $737 per Au Oz. At La Colorada, Sonora, 18.86 M tonnes of waste and 4.49 M tonnes of ore were mined at a rate of 64 K tpd and a waste/ore ratio of 3.74. Tonnes placed on the leach pad were 5.05 M at a grade of 0.40 gpt Au, producing 45,886 Oz Au, 147,348 Oz Ag at cash cost $914 per Au ounce.
  • Pan American Silver Corp. presented its financial results for Q4 and full year 2018, including figures from its Mexican operations. At La Colorada, in Zacatecas, production for the quarter 2.1 M Oz Ag, 1,200 Oz Au, and 7.6 M Oz Ag, 4,400 Oz Au for the year, at cash cost $2.02 per Ag Oz. At Dolores, in Chihuahua, production for the quarter was 0.8 M Oz Ag, 29,400 Oz Au, and 4.1 M Oz Ag, 136,600 Oz Au for the year, at cash cost ($1.87).
  • Hecla Mining Co. disclosed its Q4 and full year 2018 earnings conference call. In the presentation, San Sebastian in Durango is expected to produce 2.0 M Oz Ag, 14 K Oz Au at cash cost $9.00, AISC $12.00 per silver ounce after byproduct credits.
  • Magellan Gold Corp. informed it has processed ore from a private third-party on its SDA mill in Acaponeta, Nayarit. Magellan is advancing the El Dorado project 50 km to the south of the mill. “Quotes have been obtained for contract mining and applications for environmental and blasting permits are in progress”.

ON FINANCING

  • Mexican Gold Corp. made an application to the TSX Venture Exchange to extend for six months the expiry date of outstanding warrants exercisable to purchase over 8.4 M common shares of Mexican Gold. Later on the week Mexican Gold withdrew the application for the extension (Las Minas, Veracruz).
  • Alamos Gold Inc. announced the doubling of its annual dividend to $0.01 per common share quarterly (Mulatos, Sonora).
  • Solaris Copper Inc. received notification from the Canada Revenue Agency that it is considered a “public corporation” as of November 30, 2018 (La Verde, Michoacan).
  • Mako Mining Corp. is undertaking a non-brokered private placement to raise up to CAD$4.5 M, through the issuance of shares that can be bought by existing shareholders (La Trinidad, Sinaloa)

ON RESOURCES AND DEVELOPMENT

  • Impact Silver Corp. informed drilling has commenced on the El Canelo vein, in the Santa Teresa area of its Zacualpan property in Estado de Mexico. “Trench sampling along the strike of the vein at 10m intervals returned an average gold grade of 6.5 g/t over a true width of 1.66m and a length of 50m”. Exploration programs are ongoing in the San Ramon Sur area to the south of the San Ramon mine and at the Manto America area 4 km south of the Santa Teresa area.
  •  Minera Alamos Inc. reported the sale of 162 Oz Au from residual leaching of its 50 K tonnes bulk leach test at the Santana project in Sonora. The cumulative gold recovered from the bulk test is 1,060 Oz Au, for a calculated recovered gold of 0.66 g/t. The exploration program at the project involves over 10,000 m of drilling on the Nicho and Nicho Norte deposits, and a number of high priority targets, like Zata, Benjamin and Ubaldo.
  • Alamos Gold Inc. reported its updated mineral reserves and resources, as the end of 2018. Of the 22.4 M Oz Au held by Alamos in all categories, 7.4 M Oz Au are in Mexico.
  • Silver Bull Resources Inc. is about to start an 8,000 m surface drill program on its Sierra Mojada project in Coahuila. The program will test a series of the sulphide extension at depth of the main deposit, and a series of untested targets. The updated resource presented on last October includes an open pittable M&I resource of 13.5 M tonnes @ 11.2% Zn, and an open pittable M&I resource of 15.2 M tonnes @ 114.9 gpt Ag, and a total of M&I resources of 70.4 M tonnes @ 38.6 gpt, 3.4% Zn containing 5.3 B Lb Zn, 87.4 M Oz Ag.
  • Goldplay Exploration Ltd. obtained high-grade silver results from a trench extending mineralisation from the resource area to the Faisanes target at its San Marcial project in Sinaloa. The trench samples were collected with a rock saw, with results highlighting two true width (TW) intervals of 15.0 m @ 472 g/t Ag and 14.6 m @ 211 g/t Ag within a 56 m @ 196 gpt Ag TW interval.
  • Pan American Silver Corp. presented its updated mineral reserve and resource base to the end of 2018, including figures for its Mexican properties, as can be seen on the table below. At La Colorada, in Zacatecas, over 20,800 meters of drilling were performed during the period. “Exploration drilling of the skarn mineralization at depth, approximately 500 to 800 metres below the drill stations, indicates wide intercepts with high-grade, polymetallic mineralization”. Recent drill hole intercepts include: 44.5 m @ 40 gpt Ag, 0.1% Cu, 2.0% Pb, 4.7% Zn; 48.8 m @ 29 gpt Ag, 0.17% Cu, 1.4% Pb, 4.3% Zn; 67.9 m @ 18 gpt Ag, 0.07% Cu, 0.6% Pb, 4.7% Zn; 308.1 m @ 46 gpt Ag, 0.20% Cu, 1.9% Pb, 4.5% Zn; 64.7 m @ 33 gpt, 0.16% Cu, 2.0% Pb, 2.9% Zn.
  • Telson Mining Corp. reported on development progress and significant underground assay results at its Tahuehueto property in Durango. Mineralisation exposed during development returned high-grade assays, like: 6.74 m @ 3.80 gpt Au, 53 gpt Ag, 0.42% Cu, 2.4% Pb, 5.2% Zn; 4.40 m @ 5.39 gpt Au, 62 gpt Ag, 0.46% Cu, 3.0% Pb, 8.5% Zn; 3.55 m @ 8.61 gpt Au, 35 gpt Ag, 0.12% Cu, 1.4% Pb, 0.9% Zn; 6.77 m @ 5.36 gpt Au, 109 gpt Ag, 0.25% Cu, 0.3% Pb, 2.4% Zn, 2.0 m @ 5.54 gpt Au, 42 gpt Ag, 0.12% Cu, 2.2% Pb, 6.2% Zn. Pre-production mining produced 37.7 K tonnes @ 3.86 gpt Au, 43.6 gpt Ag, 3.9% Zn, 0.24% Cu, 2.1% Pb. A total of 1.44 km of underground development was completed, and mill construction continues.

ON DEALS AND CORPORATE ISSUES

  • Riverside Resources Inc. announced that partner Sinaloa Resources Inc. has entered into a definitive agreement that begins with an initial option to acquire a 70% interest in the La Silla project, in Sinaloa. “Under the terms of the Agreement, the Initial Option to earn 70% is predicated upon the issuance by Sinaloa Resources of shares at a value of $1,000,000, $60,000 in cash payments and exploration work totaling $2,000,000 over 36 months”. To earn an additional 30%, Sinaloa Resources is to spend $1 M in exploration work and issue $500 K in shares. Riverside will retain a 3% NSR on the project should Sinaloa Resources complete 100% earn-in, or Riverside’s interest dilutes to less than 10%.
  • Aztec Minerals Corp. reported the appointment of Mr. Marc Prefontaine and Dr. David Jones to the company’s newly formed Business and Technical Advisory Committee (Cervantes, Sonora).
  • Silver Bull Resources Inc. signed in June 2018 an agreement with South32 Ltd., granting an option to form a 30/30 JV with respect to the Sierra Mojada project in Coahuila. To maintain the option, South32 must contribute US$10 M during a 4 year option period with aggregate US$3 M, US$6 M and US$8 M to be made by the end of years 1, 2 and 3 of the period. South32 may exercise its option to subscribe for 70% of the property, by contributing US$100 M (less previous contributions) to project funding.
  • Aloro Mining Corp. announced the appointment of Kenneth J. Balleweg as technical advisor to the company. Ken has extensive experience in the Mulatos district in Sonora, and is to aid Aloro in the exploration of its Los Venados property in the same district.
  • Pan American Silver Corp. completed the acquisition of Tahoe Resources Inc. (the latte with mines in Guatemala, Peru and Canada).

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-sulfide sheeted veinlets with sericitic halos in an intrusive rock from a porphyry copper project in Michoacan. Picture by Jorge Cirett.

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

By Jorge Cirett

During the 6th week of the year (February 4th to February 10th, 2019), at least 12 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, The head of the Sub Secretariat of Mining, Francisco Quiroga, elaborated on some of the backlogs its office faces. ON EXPLORATION, In Sonora, Aloro completed an RC drilling campaign at Los Venados. In Chihuahua, Sable is drilling the Margarita project, and preparing for the exploration of the Manzana II concessions. In Durango, Gainey reported first-pass sampling results on the Las Margarita project. ON MINING, USAC informed on its activities at its Mexican operations. GoGold reported on income for the last quarter of 2018. ON FINANCING, Kootenay and Palamina announced non-brokered private placements or amendments of placements for $2.5 and $2.2 M. ON RESOURCES AND DEVELOPMENT, Goldplay completed a new resource estimation at its San Marcial project in Sinaloa. Mexican Gold engaged a contractor to update the resource estimate at its Las Minas project in Veracruz. ON DEALS AND CORPORATE ISSUES, No relevant news.

ON MEXICO ISSUES

  • The Mining Sub Secretariat head, Francisco Quiroga, informed the Mexican government is reviewing five thousand concessions in process of cancellation, as well as another five thousand in process of liberation, acknowledging a big and growing backlog.

ON EXPLORATION

  • Sable Resources Ltd. completed a leach test on core from the first phase drilling at its Margarita project in Chihuahua. The purpose was to investigate the response of three samples (684, 341, 149 gpt Ag) to silver leaching with cyanide in a bottle roll test. The two higher grade samples had a recovery of 70 and 71 percent Ag after 48 hours, while the lower grade sample had a recovery of 37 percent on the same time lapse. The second stage drilling at Margarita initiated in January, consisting of a minimum of 19 holes for a total of 3000 m, to test extensions and infill of the Margarita vein and the Marie, Juliana, Fabiana and El Caido veins. Six holes have been completed, with a best vein intercept of 12.4 m starting at 30.9 m. Sable received title for the Manzana II application, reducing the size to 39,396 hectares in 11 concessions. Vinata is a drill-ready low-intermediate sulfidation project within these concessions, in which a series of quartz veins outcrop along a strike length of about 1,150 m in volcanic rocks. “The system consists of multiple sub-parallel veins and stockwork zones over a width of between 15m and 170m. Individual veins vary in width from <1m up to about 12 m><1 m up to about 12 m”.
  • Aloro Mining Corp. completed 12 RC holes for a total of 1,747 m at its Los Venados project in Sonora. The drill program was designed to test a felsic dome complex NW of the Estrella pit, at the Mulatos mine. The thickest intercept of mineralization was 18 m @ 0.2 gpt Au. Other relevant intervals comprise 3.05 m @ 1.45 gpt, 4.57 m @ 1.72 gpt. The style of mineralization of one of the holes, like the coarse vuggy nature with crystalline quartz, octahedral pyrite, and tetrahedrite is deemed as very significant, and resembling the high-grade part of the nearby Mulatos deposit.
  • Gainey Capital Corp. reported first-pass sampling on its newly optioned Las Margarita project in Durango confirmed a 1,500-1600 m strike length for the main vein system. Preliminary work consisting of 42 samples resulted in 21 with over 1 gpt, with 11 of those assaying more than 5 gpt Au, peaking at 40.0 gpt Au.

ON MINING

  • United States Antimony Corp. has dismantled and trucked equipment from its Reynosa pant (Tamaulipas) to other USAC operations in Mexico and the United States. A lot of equipment, tools and materials were transported to the Madero smelter in Coahuila. The Madero plant received seven truckloads of Wadley (San Luis Potosi) direct shipping ore with a total of 128 K pounds of contained Sb. The assembly of the cyanide leach plant at the Puerto Blanco mill in Guanajuato is progressing. “Production from the caustic leach plant at Madero to process the flotation concentrates has resulted in close to a 100% recovery of the gold and silver”. Estimated Sb production for January is 156.6 K Lb antimony.
  • GoGold Resources Inc. reported a net income of $8.2 M for the last quarter of 2018. The previously announced sale of the 2% net smelter royalty was closed. “The closing of the sale of the royalty concludes the Corporation’s involvement with the Santa Gertrudis project which was initially acquired in 2014. Net consideration on the sale of assets associated with the Santa Gertrudis project was $88.6 million, less costs of $24.5 million resulting in a pre-tax gain of $64.1 million over the life of the project”. GoGold produced 325.1 K Oz AgEq.

ON FINANCING

  • Kootenay Silver Inc. Announced a non-brokered private placement to raise gross proceeds of up to $2.5 M.  (La Cigarra, Chihuahua).
  • Palamina Corp. amended its non-brokered private placement, to allow for the raising of up to $2.2 M (Santuario, Hidalgo).  

ON RESOURCES AND DEVELOPMENT

  • Goldplay Exploration Ltd. announced the completion of a NI-43-101 mineral resource estimate for the San Marcial project in Sinaloa. “The Mineral Resource consists of 36 million ounces (“Moz”) of silver equivalent (“AgEq”)2 at an average grade of 147 grams per tonne (“gpt”) AgEq in the Indicated category and an additional 11 Moz AgEq at an average grade of 99 gpt AgEq in the Inferred category…”. Highlighted points include: a) A shallow, high-grade Ag core zone, up to 40 m in thickness. It represents 3.0 million tonnes at an average grade of 239 gpt AgEq, 200 gpt Ag, equivalent to 23 M Oz AgEq and 19 M Oz Ag, respectively. B) 98% of the 36 M Oz AgEq Indicated Resource is potentially mineable by open pit. C) . Both the Breccia and surrounding Stockwork Zones outcrop at surface.
  • Mexican Gold Corp. informed the engagement of Mine Development Associates to provide and updated 43-101 resource on Mexican Gold’s Las Minas project in Veracruz. Since the initial resource in 2017, the company has drilled 6,454 m in 39 holes. “Additionally, higher grade mineralization was encountered in the late 2017 and early 2018 drilling in the El Dorado Dike contact zone. For example, drill hole LM-17-ED-40 encountered 38 metres grading 5.39 g/t Au, 17.1 g/t Ag and 2.20% Cu, while drill hole LM-18-ED-49 intercepted 38 metres of 4.51 g/t Au, 16.2 g/t Ag and 3.33% Cu.”.

ON DEALS AND CORPORATE ISSUES

  • 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 above, Strongly argillitized, weakly silicified ignimbrite with quartz-sulfide veinlets, in a project in Jalisco. Picture by Jorge Cirett.

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

 

Mesothermal quartz structure

By Miguel A Heredia

During the fifth week of the year (January 28th to February 04th, 2019), at least 13 press releases were announced by companies working in Mexico, with four disclosing deals and corporate issues, three informing on exploration results, three announcing financing rounds, two reporting on resources and development of their properties, and one communicating production results. ON MEXICO ISSUES, no relevant news.  ON EXPLORATION, In Sonora, Millrock reported drilling results from its La Navidad project, and Silver One announced a drilling program to be conducted on its Peñasco Quemado project. In Chihuahua, VVC provided a summary of the 2017-2018 drilling program carried out at its Samalayuca project.  ON MINING, Consolidated Zinc reported Q4 2018 results from its Plomosas mine in Chihuahua.  ON FINANCING, Palamina announced a private placement for gross proceeds of up to $2M (Santuario project, Hidalgo). Premier Gold closed a previously announced US$50M secured revolving term credit facility and a previously announced financing arrangement for aggregate gross proceeds of US$18.3M (Mercedes mine, Sonora). Silver Spruce extended until February 22, 2019 its current non-brokered private placement for up to $1.5M (Pino de Plata project, Chihuahua). ON RESOURCES AND DEVELOPMENT, Consolidated Zinc made a new discovery above the Level 5 of its Plomosas mine in Chihuahua. Great Panther increased mineral resource at its Topia mine in Durango. Endeavour announced its 2019 Mexico exploration plans. ON DEALS AND CORPORATE ISSUES, Alien Metals announced an update regarding the status of its Nominated Adviser (San Celso, Zacatecas). Aura Resources entered into a definitive option agreement with Minaurum on its East Taviche project in Oaxaca. Candente Gold ratified an agreement with the El Oro Municipality for a re-processing of the historical tailings from the El Oro mine in the State of Mexico. Consolidated Zinc announced that it now owns 90% of the Plomosas mine in Chihuahua. Great Panther reported that Glass Lewis & CO., LLC recommended the acquisition of Beadell Resources (Topia mine, Durango).

ON MEXICO ISSUES

  • No relevant news.

ON EXPLORATION

  • Millrock Resources Inc., and its JV partner Centerra Gold Inc., reported drilling results from its La Navidad project in Sonora. The drilling program funded by Centerra consisted of 1,844m in eight holes and was focused on the northwestern portion of the project. Four holes were collared at El Tigre prospect where Au had been detected by soil sampling near of some historic mine workings. These holes tested IP anomalies and NW trending high-angle structures that appear to control mineralization at surface. Four other holes were collared at El Chupadero to test decalcification and jasperoid alteration pointed to the possibility of an intrusion-related gold deposit. Drilling results were generally disappointing just returning weakly anomalous Au values. Millrock has received notification from Centerra that it is terminating the option to JV agreements on La Navidad and El Picacho projects in Sonora.
  • Silver One Resources Inc., announced that a 1,000m drilling program will initiate by mid-February 2019 on its Peñasco Quemado project in Sonora. The goal of the drilling program will be “to test selected targets within strong Zn-Pb and other metal geochemical and coincidental geophysical anomalies previously identified”.
  • VVC Exploration Corporation, provided a summary of the 2017-2018 drilling program conducted at its Samalayuca project in Chihuahua. 6,700m were drilled in 62 holes and tested 5km long mineralized zone covering approximately two thirds of the length of the property. A total of 2,990 core samples were taken during the drilling campaigns, and 57 out of 62 holes returned intervals with Cu values > 1% with some sections as high as 0.95% Cu and estimated true mineralization widths up to 36m.

ON MINING

  • Consolidated Zinc Limited, reported Q4 2018 results from its Plomosas mine in Chihuahua. The company mined 5,291 tonnes of 10% Zn and 2.1% Pb to produce 1.18M Lb Zn and 253K Lb Pb, with metallurgical recoveries of 89% and 86% respectively.

ON FINANCING

  • Palamina Corp., announced plans to conduct a non- brokered private placement for aggregate gross proceeds of up to $2M (Santuario project, Hidalgo).
  • Premier Gold Mines Limited, closed a previously announced US$50M secured revolving credit facility with Invested Bank plc, and a previously announced financing arrangement with OMF Fund II SO Ltd and Orion Mine Finance Fund II LP for aggregate gross proceeds of US$18.3M.
  • Silver Spruce Resources Inc., extended until February 22, 2019 its current non-brokered private placement for up to $1.5M. Net proceeds will be used to pay a drilling program at its Pino de Plata project in Chihuahua and general working capital.

ON RESOURCES AND DEVELOPMENT

  • Consolidated Zinc Limited, encountered economic mineralization above the level 5 initial access point to the Tres Amigos area in its Plomosas mine in Chihuahua. This new discovery was made while the company was progressing on the underground development to increase access to high grade stops and mining high grade ore from existing stopes.
  • Great Panther Silver Limited, announced a 28% increase in the mineral resources at its Topia mine in Durango. A summary of the updated 2018 mineral resource estimate is as follow:

  • Endeavour Silver Corp., announced its 2019 exploration plans to be conducted on its mines and advanced projects in Mexico. For its Guanacevi mine in Durango, Endeavour has an exploration budget of $1.2M for 6,000 m of underground crosscuts and core drilling to extend the El Porvenir Norte and Santa Cruz orebodies and infill and extend the Milache orebody. For its Bolañitos mine in Guanajuato, the company has an exploration budget of $0.8M for 5,000m of surface core drilling to extend the Plateros orebody and outline new resources in the San Miguel vein. For its El Cubo Mine in Guanajuato, Endeavour has an exploration budget of $0.3M for 2,000m of underground core drilling to extend the Villalpando-Asuncion vein. For its El Compas project in Zacatecas, the company has an exploration project of $0.8M for 5,500m of surface core drilling to extend the El Compas, Calicanto, and Santa Fe veins and infill drill the El Orito orebody. For its Terronera project in Jalisco, Endeavour has an exploration budget of $0.8M for conducting prospecting, mapping and sampling at La Unica area where multiple new veins have been identified and expects to delineate new targets for future drilling. Endeavour pegged five new claims covering 2,200 hectares along the southern property boundary to cover possible extensions of the Real Alto vein system. For its  Parral project in Chihuahua, the company has an exploration budget of $2.3M for 6,000m of surface core drilling and an underground crosscut to confirm old resources and outline new resources in the Veta Colorada vein, as well as a PEA and initial mine permitting.

ON DEALS AND CORPORATE ISSUES

  • Allien Metals Ltd, announced that Northland Capital Partners Limited, its current Nominated Adviser, has voluntary agreed to relinquish and will be removed from the register of Nominated Adviser with effect from 7 AM on 1 February, 2019, as a results of Northland´s proposed merger with SP Angel Corporate Finance LLP. If a replacement of its Nominated Adviser has not been appointed by 4 March 2019 the admission of its AIM Securities will be cancelled.
  • Aura Resources Inc., entered into a definitive option agreement with Minaurum Gold Inc, on its East Taviche project in Oaxaca. Minaurum can acquires an initial 80% interest in East Taviche by the issuance of 100K common shares in the capital of Minaurum, the re-imbursement of all Taviche concessions fees paid by Aura in 2018, and payment of the remaining concession fees to bring the property into good standing until January 31, 2019, to a maximum of US$80K, and the issuance of 100K common shares in the capital of Minaurum upon receiving all relevant approvals and consents required to be obtained for the commencement of exploration and drilling activities at the East Taviche  In addition, Aura will grant to Minaurum an exclusive option to acquire the remaining 20% of the project for a total purchase price of CDN$1M.  Upon acquiring the initial 80% interest, Minaurum will act as operator of the project.
  • Candente Gold Corp., ratified an agreement with the El Oro Municipality for the re-processing of the historical tailing from the El Oro mine in the State of Mexico. This ratified agreement provides Candente with the right to recover all available Au and Ag from the tailings deposit and pay an 8% net profits interest (NPI) to El Oro Municipality. The company also retains the first US$1.5M from the 8% NPI payable to the Municipality. Candente will allows the Municipality to conduct tourism activities in part of the San Juan tunnel and Providencia shaft which are historical workings controlled by Candente. The historical tailings are located far away from the old workings so the tourism activities would not impact the development of the tailings.
  • Consolidated Zinc Limited, announced that it now owns 90% of the Plomosas mine in Chihuahua though an increased shareholding in Minera Latin American Zinc SAPI CV by making a cash payment of A$75K and issuance of shares in Consolidated Zinc to the value of A$1.7M at a share price of 2.34 cents per share.
  • Great Panther Silver Limited, reported that Glass Lewis & CO, LLC recommended that shareholders vote in favour of the Great Panther scheme resolution to acquire Beadell Resources Limited and change its name to Great Panther Mining Limited (Topia mine, Durango).

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

On the picture above, a mesothermal quartz structure in an orogenic gold prospect in Sonora, Mexico.  Photo by Miguel A Heredia.

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

Monzonite porphyry dike intrusive contact with andesitic tuff -note the flow banding- on a project in Jalisco. Picture by Jorge Cirett.

By Jorge Cirett

During the 4th week of the year (January 21st to January 27th, 2019), at least 20 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, CAMIMEX expressed it is in contact with diverse actors of the public administration to consolidate the international competitivity of the mining industry. ON EXPLORATION, In Chihuahua, Radius Gold staked the 9,600 ha. Rambler project, covering a 9 km trend of epithermal mineralization. In Sinaloa, Kootenay Silver released interesting surface sample results from its Copalito project. In Durango, Orex is to perform a VTEM airborne survey on the San Luis Del Cordero property. In Hidalgo, Prospero Silver initiated drilling at the Pachuca SE project, with funding by Fortuna Silver. ON MINING, Pan American, Argonaut, Gold Resource, Fresnillo, Sierra Metals and Americas Silver presented Q4 and full year 2018 production results (by the way, anyone has heard from Frisco on this regard?). Endeavour presented its 2019 production guidance. ON FINANCING, Premier Gold signed a credit agreement with Investec Bank as administrative agent for the lenders for a US$50 M credit facility. ON RESOURCES AND DEVELOPMENT, Endeavour updated its reserve and resource base, for a consolidated grand total of 132 M Oz Ag, 1.042 M Oz Au. Premier Gold presented high-grade intercepts from drilling at Mercedes, Sonora, where over 40,000 m of drilling were completed in 2018. Leagold is to produce 200-220 K Oz Au in 2019 at Los Filos, Guerrero. Azure Minerals presented a favorable scoping study for its Oposura project in Sonora. Impact Silver is defining extensions on veins at its Zacualpan property in Estado de Mexico. Excellon released high-grade results from surface exploration at its Platosa mine in Durango. Capstone filed on Sedar a technical report for Cozamin, Zacatecas. ON DEALS AND CORPORATE ISSUES, Prospero Silver announced the signature of the option agreement with Fortuna Silver on the Pachuca SE project.

ON MEXICO ISSUES

  • CAMIMEX (Cámara Minera de México), in a response to El Financiero, expressed that any modification to the mining regulations has to take into account the wellbeing of the communities and its environment. The organization, of which leading companies like Peñoles, Grupo México and Minera Frisco are members, considers mining is one of the most supervised sectors in the country, with a modern and robust regulatory frame, following international standards, although areas of opportunity can always be identified.  “We have approached diverse authorities on the public administration and found openness to solve any pending issues and consolidate the international competitivity that benefits the country development”.

ON EXPLORATION

  • Orex Minerals Inc. contracted Geotech Ltd. To perform a VTEM (Versatile Time Domain Electromagnetic) airborne survey over its San Luis del Cordero project in Durango. Old mine workings and mineralized showings wrap around a Tertiary quartz-feldspar-porphyry intrusive. The helicopter-borne survey, with accompanying horizontal gradiometer and radiometric surveys, is to identify discrete conductive anomalies, as well as mapping lateral and vertical variations in resistivity. The airborne survey will be conducted over a grid at 100 m line-spacing for approximately 275 line-km, with measurements every 2-3 m along survey lines.
  • Prospero Silver Corp. has started phase 2 drilling at its Pachuca Se project in Hidalgo. Fortuna Silver Mines Inc. has an option to acquire up to a 70% interest in the 6,699 hectares project (24 km SE from Pachuca) by spending a total of US$8 M and completing a preliminary economic assessment (PEA), spending more than US$1 M in the first year. A six-hole, 4,200 m program started to test a number of potential drill targets. In a Fortuna funded program in early 2018, 1,800 m of drilling tested three distinct targets, intercepting what is interpreted to be the upper parts of a mineralized epithermal system.
  • Radius Gold Inc. staked a 9,600 ha property called the Rambler project, in Chihuahua, some 20 km NW from Radius’s Amalia project. Regional prospecting discovered epithermal mineralization in veins, vein breccias and disseminated zones over a 9 km trend, where samples with up to 16.5 gpt Au, 2,030 gpt Ag, 3.8% Cu, 13.9% Zn, 3.4% Pb were collected. Saucito is the main target area, where a 500 x 70 m stockwork returned an average of 177 gpt Ag on 31 samples. Other target areas with interesting rock chip sample results include La Machomera (up to 7.3 gpt Au, 469 gpt Ag), La India (up to 10.3 gpt Au, 16 gpt Ag), El Gringo (4.8 gpt Au, 3.8% Cu).
  • Kootenay Silver Inc. released results from surface sampling and mapping at the Copalito Ag-Au project in Sinaloa, same that covers an epithermal system with numerous veins 0.5-15 m in width and up to 2 km in strike length. Sampling Highlights include 7.2 Gpt Au, 3,770 gpt Ag at the 5 Señores and Agua veins respectively; 8.2 gpt Au, 583 gpt Ag across 1.1 m on the 5 Señores vein; 401 gpt Ag across 5.3 m on 5 Señores vein; 532 gpt Ag over 3.0 m and 306 gpt Ag over 4.9 m across the Agua vein; 17.4% Zn, 9.9% Pb, 0.52 gpt Au, 76 gpt Ag on a grab sample at Pillar vein and 5.1%, 1.6% and 1.5 Cu along the Cobriza vein. Of 117 rock samples collected, 29 returned silver grades over 90 gpt, including 11 over 300 gpt and 6 over 500 gpt.

ON MINING

  • Pan American Silver Corp. announced preliminary operating results for the fourth quarter and full year 2018, including information from its operations in Mexico. At La Colorada in Zacatecas, 7.6 M Oz Ag, 4,400 Oz Au were produced during the year, at cash cost $2.02 per Ag Oz, whereas at Dolores in Chihuahua, 4.1 M Oz Ag and 136,600 Oz Au were produced at cash cost ($1.87) per Ag Oz. Pan American is planning to sustain 2,000 tonnes per day  (tpd) throughput at La Colorada during 2019, and continue to explore and define the potential of the “significant skarn deposit discovered in 2018”.  At Dolores the company plans to ramp-up underground production rates to 1,500 tpd and sustain the 20 K tpd throughput rate to the heap leach from the pit.
  • Argonaut Gold Inc. informed on Q4 production and yearly results for 2018, including numbers from its Mexican operations. At El Castillo Complex, in Durango, 37,977 GEOs (Gold equivalent ounces) were produced during the quarter, 18,984 from El Castillo mine and 18,993 from the San Agustin mine. At La Colorada, in Sonora, 13,681 Oz Au were produced during the same period. For the year, El Castillo Complex produced 117,126 GEOs and La Colorada 47,991 GEOs. Argonaut plans to invest $50-$60 M in capital expenditures during 2019, with $15 M allocated to the expansion of crushing and leaching facilities at San Agustin to increase the rate of production from 20K tpd to 30 K tpd.
  • Gold Resource Corp. reported 2018 year-end and fourth quarter production results from their El Aguila mining operations in Oaxaca. During the year Gold Resource produced 26,838 Oz Au, 1.67 M Oz Ag, 1,652 tonnes Cu, 7,280 tonnes Pb and 19,808 tonnes Zn. During the fourth quarter 7,974 Oz Au and 330.6 K Oz Ag were produced.
  • Fresnillo PLC. released 4Q and full year 2018 results, with a consolidated production of 61.8 M Oz Ag and 923 K Oz Au for the year and 15.5 M Oz Ag, 232 K Oz Au for the quarter. Lead (53,181 tonnes) and Zinc (88,520 tonnes) production amounted to 19.9 M Oz AgEq. “The cumulative drilling for the year at our operating mines and exploration projects was 579,000 and 346,000 metres respectively. Resources and reserves (in the case of the operating mines) are presently in audit by SRK and the results of which will be disclosed in the first quarter of 2019 with our Preliminary results. Resources were increased at the Guanajuato and San Juan projects, while mapping identified new targets at the Fresnillo and Herradura districts, and a geophysical survey detected areas for follow up in the San Julián district. Further to this, and for the first time in the Company’s history, drilling began in Chile. Exploration teams are working out of the Hermosillo, Chihuahua, Zacatecas, Toluca, Lima-Peru and Santiago de Chile offices in selected areas of favorable silver-gold belts in Mexico, Peru, Chile and Argentina”. (Note from editor: the mining community is waiting for Frisco to produce reports like this one).
  • Endeavour Silver Corp. announced its consolidated silver and gold production guidance for 2019, to be 4.4-5.2 M Oz Ag, 46.2-52.2 K Oz Au, or 8.1-9.4 M Oz AgEq. “Cash costs, net of gold by-product credits, are expected to be $8.50-$9.50 per oz of silver produced in 2019. Consolidated cash costs on a co-product basis are anticipated to be $11.50-$12.50 per oz silver and $900-$1,000 per oz gold”. The final dumps and tailings permit at Terronera is needed to make a development decision. The company plans to drill 24,500 m during 2019 in Guanaceví, Bolañitos, El Cubo, El Compas, Terronera, Parral and Guadalupe y Calvo.
  • Sierra Metals Inc. Disclosed Q4 and full year 2018 results, including figures from its Mexican operations. The Bolivar mine in Chihuahua processed (at 2,948 tonnes per day, or tpd) in the year 1 M tonnes of ore @ 0.95% Cu, 18 gpt Ag, 0.17 gpt Au, with recoveries of 79.9% Cu, 77.1% Ag, 68.5% Au, to produce 17.23 M Lb Cu, 452 K Oz Ag, 3,968 Oz Au. For the quarter, 272.6 K tonnes were processed (3,116 tpd) @ 0.94% Cu, 15 gpt Ag, 0.15 gpt Au, to produce 4.23 M Lb Cu, 128 K Oz Ag, 1,163 Oz Au. At Cusi, also in Chihuahua, 186.9 K tonnes were processed (534 tpd) during the year at a grade of 140 gpt Ag, 0.16 gpt Au, 0.36% Pb, 0.40% Zn, recovering 83.1% Ag, 39.1% Au, 79.9% Pb, 4.3% Zn, to produce 700 K Oz Ag, 372 Oz Au, 1.19 M Lb Pb, 937 K Lb Zn. During the last quarter Cusi processed 58.3 K tonnes (666 tpd) @ 111 gpt Ag, 0.16 gpt Au, 0.41% Pb, 0.49% Zn, to produce 171 K Oz Ag, 124 Oz Au, 421 K Lb Pb, no Zn.
  • Americas Silver Corp. announced production and operating results for 2018, including figures from its Mexican operations. At Cosalá, in Sinaloa, 544.5 K tonnes were milled @ 47 gpt Ag, to produce 448.1 K Oz Ag, 34.22 M Lb Pb, 12.86 M Lb Zn, or 4.16 M Oz AgEq at cash cost ($37.95) and AISC ($19.69).

ON FINANCING

  • Premier Gold Mines Ltd. Announced the signing of a definitive credit agreement with Investec Bank PLC, as administrative agent for the lenders of a US$50 M secured term credit facility. Premier also announced financing arrangements with OMF Fund II SO Ltd. and Orion Mine Finance Fund II LP for aggregate gross proceeds of US$18.2 M. (Mercedes, Sonora).

ON RESOURCES AND DEVELOPMENT

  • Endeavour Silver Corp. updated its reserve and resource base for its mines and projects for 2018. Consolidated reserves and resources, including inferred resources for its seven units comprise 132 M Oz Ag and 1.042 M Oz Au, as displayed on the following table:
  • Premier Gold Mines Ltd. provided an update on its exploration programs, including information from its Mexican operations. At Mercedes in Sonora, positive exploration results include 18.3 m @ 38.3 gpt Au, 26 gpt Ag on the Aida vein, and 22.0 m @ 36.6 gpt Au, 171 gpt Ag at Rey de Oro. During the past year 280 brownfield and greenfield holes were completed representing 40,720 m of drilling.
  • Leagold Mining Corp. announced its intention to produce 200 K to 220 K Oz Au during 2019, at an AISC of $925 to $925-975 at Los Filos, in Guerrero. The proven and probable reserves at the property stand at 111.33 M tonnes @ 1.22 gpt Au, containing 4.363 M Oz Au, and 114 K Oz Au on the leach pad inventory.
  • Azure Minerals Ltd. Presented its quarterly report for the period ended on December 2018. The company highlighted the Scoping Study for the Oposura project in Sonora, with an EBITDA of A$237 M, pre-tax NPV of A$112 M, pre-tax IRR of 76%, average life of mine cash cost US$0.42 per Zn Lb and a pre-production CAPEX of A$69.9 M. At the Alacrán project in Sonora, Teck completed its Phase 2 drilling program comprising 10.537 m in 21 holes, with focus on testing porphyry copper potential at Cerro Alacrán, with assays pending. At Oso Negro, also in Sonora, sampling returned more high-grade mineralization, with the best sample returning 15.5 gpt Au, 1,935 gpt Ag, 5.9% Zn, 4.6% Pb. At Sara Alicia, also in Sonora, the company has been showing the property to potential partners or buyers.
  •  Impact Silver Corp. hired a consultant to define extensions to the vein systems on its Zacaualpan property in Estado de Mexico. Work to date has defined on strike extensions to the San Ramon silver vein system through geological work and soil sampling, and better characterizing the potential for bulk mineable ore in the Santa Teresa area.
  • Excellon Resources Inc. released high-grade results from ongoing surface exploration at its Platosa mine in Durango. Highlighted intervals comprise 0.9 m @ 283 gpt Ag, 9.8% Pb, 0.3% Zn; 5.6 m @ 383 gpt Ag, 8.0% Pb, 0.2% Zn; 2.5 m @ 406 gpt Ag, 3.7% Pb, 0.2% Zn; 0.6 m @ 2,060 gpt Ag, 7.8% Pb, 9.1% Zn; 5.0 m @ 0.28 gpt Au, 968 gpt Ag, 9.4% Pb, 20.2% Zn; 4.8 m @ 1,127 gpt Ag, 8.4% Pb, 10.5% Zn.
  • Capstone Mining Corp. filed on SEDAR a NI-43-101 compliant report titled “NI 43-101 Technical Report on the Cozamin Mine, Zacatecas, Mexico”.

ON DEALS AND CORPORATE ISSUES

  • Prospero Silver Corp. announced the signature of the previously disclosed option agreement with Fortuna Silver Mines Inc. on the Pachuca SE project. “On December 10, 2018 Prospero announced that Fortuna Silver Mines Inc. (“Fortuna”) exercised its right to be granted an option to acquire up to a 70-per-cent interest in the Pachuca Southeast project located close to the historic mining city of Pachuca in Hidalgo state, Mexico, by spending a total of $8-million (U.S.) in qualifying expenditures and completing a preliminary economic assessment, with a minimum spend of $1-million in the first year” (Pachuca SE, Hidalgo).

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, monzonite porphyry dike intrusive contact with andesitic tuff -note the flow banding- on a project in Jalisco. Picture by Jorge Cirett.

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


Quartz-sulfide sheeted veinlets with silicified halos in argillitized fragmental tuff on a project in Jalisco

By Jorge Cirett

During the 2nd week of the year (January 7th to January 13th, 2019), at least 26 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, The government stressed the need to create a new legal framework to standardize the safety, health and protect workers and the environment. ON EXPLORATION, In Sonora, San Marco confirmed the presence of a porphyry copper system at El Espiritu; Silver Viper released unpublished historical drill results from its La Virginia property. In Chihuahua, Sable Resources summarized its 2018 program on Margarita, and 2019 drill plans for Margarita and Vinata projects; Kootenay reported new surface sample results from the Columba project. ON MINING, Consolidated Zinc, Great Panther, Endeavour Silver, New Gold, Torex Gold and Capstone presented Q4 2018 production results. Sierra Metals is increasing production at Bolivar, Chihuahua. US Antimony is completing its plant to process Los Juarez ore. ON FINANCING, Silver One, Gainey Capital and SilverCrest completed non-brokered private placements for gross proceeds of C$624 K, $750 K and C$292 K. respectively. ON RESOURCES AND DEVELOPMENT, Oceanus informed on El Tigre, Sonora,  2018 exploration, and plans for 2019. SilverCrest released further high-grade in-fill drilling results from its Las Chispas property in Sonora. Excellon released high grade underground results from the 623 Manto at its Platosa mine in Durango. ON DEALS AND CORPORATE ISSUES, Great Panther and Beadell Resources completed the friendly acquisition of the latter by Great Panther. Prize Mining trading was halted at the TSX Venture Exchange. Riverside outlined its 2019 business plan, which includes advancing properties, potential joint venture partnerships and strategic alliances. Americas Silver and Pershing Gold announced their shareholders approved its merger.

ON MEXICO ISSUES

  • The president of the Commission on Mining and Regional Development, Geovanna del Carmen Bañuelos de la Torre, said that it is necessary to create a new legal framework to standardize the safety, health and protect workers and the environment. She also recognized that the actual distribution of the Mining Fund lacks rigor on its application, and that a reform proposal has been formulated.

ON EXPLORATION

  • Sable Resources Ltd. summarized its 2018 exploration program, including information from its projects in Mexico. During 2018’s second quarter Sable completed 2,420 m in 12 drill holes at the Margarita project in Chihuahua, testing epithermal veins in Eocene-Oligocene volcanic rocks. “The project is defined by 5 veins; Margarita, El Caido, Juliana, Faviana, and Marie. All exploration drilling by Sable up to this point was executed along 750 m strike of the Margarita Vein”. Results for the first round of drilling include close to surface high-grade intersections like: 252 g/t AgEq over 11.3 m;  462 g/t AgEq over 4.25 m and larger low-grade halos as: 36 g/t AgEq over 21.35 m and 50 g/t AgEq over 44 m. “A second round of drilling planned to start in mid-January includes 1360m in 9 holes to extend the drilling for 1.5km along the known surface trace of the Margarita vein and to close the drilling grid to approximately 250m space. In addition, 1750m will be drilled in 13 exploration holes that will test the other veins”. Sable received title for 12 mining concessions covering 38,396 ha in Chihuahua, all covering stream sediment and rock sample anomalous areas, including the drill ready Vinata vein system located NE of the Margarita project. The company also holds projects in Canada, Peru and Argentina.
  • San Marco Resources Inc. confirmed the existence of a porphyry Cu-Mo-Au system at its Espiritu project in Sonora. The work done confirmed a multi-stage system with an alteration foot-print at least 2.5 Km x 1.2 Km and that the best Cu mineralization is surface and drill core samples is in rocks with potassic alteration and a quartz-chalcopyrite-pyrite stockwork. There are indications that copper mineralization might be preserved at depth within the shallower part of the porphyry system(s). Future work is expected to include magnetic and ZTEM surveys in advance of possible drilling at the project.
  • Kottenay Silver Inc. reported that new assay results from outcropping quartz veins support the potential for the discovery of a high-grade silver deposit at its Columba project in Chihuahua. The veins have strike lengths of 200 m to 2 km, and thicknesses from 0.5 to 6 m. In the latest field campaign 50 channel and 90 grab samples were collected on eight of the ten veins in the property. “Highlights include 33 samples, between lengths of 0.70 and 2.0 meters, returning silver values ranging between 30 gpt to 397 gpt and 55 samples returning grades >10 gpt”. Contiguous channel samples averaged 4.9 m @ 198 gpt Ag; 3.5 m @ 276 gpt Ag; 2.2 m @ 330 gpt Ag; 6.6 m @ 182 gpt. The next steps are additional mapping and surface sampling to prioritize drill targets and obtain drill permits.
  • Silver Viper Minerals Corp. released previously unreported significant drill intercepts from a historical database from La Virginia project in Sonora. The database was generated by Minefinders Corporation Ltd. and Pan American Silver Corp. up to 2013, and includes information on 52,635 m of drilling in 188 holes, with only the first 50 holes having been disclosed in press releases. The disclosed tables include significant intervals from seven areas, here some of these (true width estimated at 75-80% of core length): At Las Huatas, 18 m @ 2.81 gpt Au, 187 gpt Ag (including 1.5 m @ 3.50 gpt Au, 399 gpt Ag; 1.5 m @ 21.6 gpt Au, 1,173 gpt Ag); 0.6 m @ 11.54 gpt Au, 1,156 gpt Ag; 12 m @ 1.26 gpt Au, 109 gpt Ag; 1.5 m @ 6.52 gpt Au, 625 gpt Ag; 8.5 m @ 1.38 gpt Au, 105 gpt Ag (including 3.95 m @ Au, 2.07 gpt Au, 158 gpt Ag); 1.15 m @ 9.67 gpt Au, 658 gpt Ag; 17.5 m @ 0.72 gpt, 35 gpt Ag; 20.45 m @ 1.04 gpt, 69 gpt Ag; 0.9 m @ 54.79 gpt Au, 43 gpt Ag; 7 m @ 1.37 gpt Au, 65 gpt Ag; 7.55 m @ 1.56 gpt Au, 88 gpt Ag; 1.5 m @ 4.92 gpt Au, 421 gpt Ag; 12.9 m @ 2.44 gpt, 122 gpt Ag. At La Virginia, 1 m @ 3.27 gpt Au, 196 gpt Ag; 18 m @ 2.59 gpt Au, 119 gpt Ag (including 1.7 m @ 18.27 gpt Au, 794 gpt Ag); 8.5 m @ 0.87 gpt Au, 36 gpt Ag; 0.8 m @ nil Au, 300 gpt Ag; 19 m @ 0.65 gpt Au, 29 gpt Ag. At Con Virginia, 5.75 m @ 2.35 gpt Au, 153 gpt Ag; 11.7 m @ 0.62 gpt Au, 77 gpt Ag; 17.4 m @ 0.87 gpt Au, 81 gpt Ag; 2.05 m @ 6.73 gpt Au, 976 gpt Ag; 1.2 m @ 7.78 gpt Au, 1055 gpt Ag. At El Oriental, 2 m @ 2.47 gpt Au, 19 gpt Ag; 5 m @ 2.40 gpt Au, 60 gpt Ag; 3.8 m @ 11.99 gpt Au. 77 gpt Ag; At La Cascada, 1.3 m @ 20.92 gpt Au, 37 gpt Ag. At Huatas Sur, 2.8 m @ 1.05 gpt Au, 81 gpt Ag; 1.95 m @ 1.31 gpt Au, 29 gpt Ag; 3.75 m @ 9.32 gpt Au, 144 gpt Ag (including 1.55 m @ 19.97 gpt Au, 254 gpt Ag). At La Colonia, 0.85 m @ 3.04 gpt Au, 23 gpt Ag. Limited confirmation drilling was completed at the Las Huatas and Con Virginia prospects. These holes were drilled to test gaps in the known data. Previously undrilled prospects Huarache, La Gloria and El Rubi were also tested in 2018. To date, the Company has released results for the confirmation drilling at Las Huatas. Subsequent results and a discussion of the 2018 program and plans for 2019 are scheduled for release in the near future.

ON MINING

  • Consolidated Zinc Ltd. provided an update on production at its Plomosas mine in Chihuahua for December 2018. During the period 4,072 tonnes were hauled to surface @ 10.2% Zn, 2.4% Pb. Recoveries at the Santa Eulalia plant have been 89% Zn, 86% Pb. All the ore mined was from an area outside of the JORC defined resource.
  • Great Panther Silver Ltd. reported fourth quarter and 2018 production results for its properties in Mexico. During the year the company produced 1.86 M Oz Ag, 20,161 Oz Au, 1,958 tonnes Pb, 2,361 tonnes Zn from the two operations. At Topia, Durango, 18.9 K tonnes @ 326 gpt Ag, 0.83 gpt Au were processed during the quarter, recovering 92.9% Ag, and 53.4% Au to produce 183.7 K Oz Ag, 267 Oz Au, 474 tonnes Pb, 661 tonnes Zn. At the Guanajuato mine Complex 70.4 K tonnes @ 129 gpt Ag, 2.01 gpt Au were processed, recovering 87.2% Ag, 84.4% Au to produce 254.4 K Oz Ag, 3,833 Oz Au. Reflecting low metal prices, operations at the Guanajuato Mine Complex is shifting all production to the San Ignacio mine for 2019.
  • United States Antimony Corp. reported the status of beneficiation of ore at Los Juarez, Queretaro, where 30 K tonnes have been mined. The crusher and flotation circuits at the Puerto Blanco mill (in Guanajuato) are ready for production, while the tailings installation is nearly complete. Most of the cyanide leach plant has been built and is being installed. The caustic leach plant at Madero to process the flotation concentrates is operational and has recovered the precious metals with close to a 100% recovery, and pilot production of Au, Ag and Sb is about to start in Q1 2019.
  • Sierra Metals Inc. informed it is on track on its staged mine production increase from 3,000 to 3,600 tonnes per day (TPD) in Q1 2019 (and 5,000 TPD by 2020) at its Bolivar mine in Chihuahua. “Completion of the expansion included the installation of a refurbished mill, an electrical substation with 1250 KVA of capacity, a secondary crusher and a hydrocyclone cluster that allows for finer grind size optionality that is estimated to provide a 6% increase in copper recoveries from 80% to 86% at Bolivar Mine”.

Endeavour Silver Corp. reported consolidated production of 5.5 MOz Ag, 52,967 Oz Au (9.5 MOz AgEq) in the fourth quarter 2018.  Drilliing at Bolañitos returned multiple high-grade intersections, including 1.1 m (TW) @ 1,415 gpt Ag, 2.25 gpt Au in the San Miguel mine. Parral drilling and underground sampling returned  multiple high.grade intersections, including 4.2 m (TW) @ 934 gpt Ag, 0.21 gpt Au, 3.0% Pb, 5.9% Zn. El Compas commissioning has been delayed by metallurgical and plant issues that have been or are in the process of being corrected, while the mine development has been completed and and a 10K tonnes stockpile produced. At Guanaceví, the Milache and SCS orebodies development commenced. At Bolañitos, drilling outlined several mineralized areas and extensions to known areas, with potential to extend the mine life. At El Cubo, drilling of new targets failed to intersect any economic mineralization, and production is to be halved to increase mine life while more reserves are sought.

  • New Gold Inc. presented fourth quarter results, including figures from the Cerro San Pedro property in San Luis Potosi.  Mine closure activities continued at the Cerro San Pedro mine, and 1,448 Oz Au were recover by residual leaching of heap pads.
  • Torex Gold Resources Inc. announced 354 K Oz Au were produced at its El Limon-Guajes mine in Guerrero.
  • Capstone Mining Corp. released preliminary fourth quarter production results for 2018, including figures from its operations in Mexico. At Cozamin in Zacatecas, 278.8 K tonnes were processed at a rate of 3,030 tonnes per day (TPD) @ 1.61% Cu, 1.29% Zn, 0.41% Pb, 50.2 gpt Ag, recovering 94.3% Cu, 65.9% Zn, 58.5% Pb, 75.5% Ag to produce 9.36 M Lb Cu, 5.22 M Lb Zn, 3.15 M Lb Pb, 339.2 K Oz Ag, 68 Oz Au.

ON FINANCING

  • Silver One Resources Inc. closed its previously announced private placement financing for gross proceeds of C$623.7 K. Silver One also commented it is not aware of any information other than that previously disclosed in its public filings, news releases or statements, which would result in the levels of trading activity and change in the share price recorded in recent days (Peñasco Quemado, Sonora; La Frazada, Nayarit).
  • Gainey Capital Corp. received conditional approval by the TSX Venture Exchange to close the first tranche of its non-brokered private placement of up to $1.15 M announced on November 28, 2018. In this tranche the closing accrued gross proceeds of $750 K (El Colomo, Nayarit).
  • SilverCrest Metals Inc. informed the completion its non-brokered private placement with Pierre Beaudoin, for gross proceeds of Cdn$292 K (Las Chispas, Sonora).

ON RESOURCES AND DEVELOPMENT

  • Oceanus Resources Corp. informed that during 2018 carried a regional prospecting and mapping program on its El Tigre property in Sonora. The objective was to know the extent of El Tigre Formation, the rock package that hosts the historic El Tigre mine. Such formation was found to extend 5 km to the south reaching the Lluvia de Oro prospect, and 3 km further to the south at La Mancha workings. Prospecting and mapping was carried out also to the east, where several historical underground workings were located. Given the positive results, Oceanus applied for an additional 4,465 hectares, increasing its land position to 26,307 hectares. The company will continue prospecting, mapping and sampling during 2019 to establish drill targets.
  • SilverCrest Metals Inc. released further in-fill results from its Las Chispas property in Sonora. The 20 reported in-fill holes targeted the high-grade Area 51 zone, Babicanora Central zone and Babicanora Footwall and Hangingwall veins. On previous drilling (used for the past resource calculation) the Area 51 had an estimated average 2.7 m of true width (TW) @ 7.13 gpt, 614 gpt Ag (1,148 gpt AgEq); the weighted average of the 28 in-fill holes to date is 3.9 m (TW) @ 11.36 gpt Au, 1,064 gpt Ag (1,915 gpt AgEq). The latest results include the best drilling interception to date: 9.3 m @ 39.66 gpt Au, 3,361 gpt Ag (including 0.4 m @ 252 gpt Au, 9,740 gpt Ag; 0.9 m @ 92.7 gpt Au, 7,570 gpt Ag; 0.4 m @ 47.30 gpt Au, 7,790 gpt Ag).
  • Excellon Resources Inc. announced results from underground exploration at the Platosa mine in Durango. The high-grade 623 Manto has been further defined with diamond drilling results, of which the next results were highlighted: 6.6 m @ 0.1 gpt Au, 704 gpt Ag, 5.8% Pb, 10.1% Zn (including 2.7 m @ 0.1 gpt Au, 1,669 gpt Ag, 13.2% Pb, 24.4% Zn); 4.9 m @ 2,802 gpt Ag, 12.% Pb, 5.4% Zn (including 2.8 m @ 4,789 gpt Ag, 20.4% Pb, 9.0% Zn; 3.7 m @ 775 gpt Ag; 7.3% Pb, 6.4% Zn; 4.2 m @ 150 gpt Ag, 0.1% Pb, 2.0% Zn. The Company continues to test priority targets within the north-south trending Platosa corridor while defining new targets at Jaboncillo, PDN, Saltillera North and South and San Gilberto. A 3D induced polarization program was completed at Jaboncillo and PDN in late 2018 in preparation for drilling programs on both targets in the coming months   

ON DEALS AND CORPORATE ISSUES

  • Great Panther Silver Ltd. filed its management information circular in respect of the friendly acquisition of Beadell Resources Ltd. Once the acquisition is completed, the company will have a diversified portfolio of producing mines in Mexico and Brazil, and an advanced stage development project in Peru, with additional near-term resource growth potential from Bradell’s in and near mine targets to add to the growth potential from Great Panther’s advanced stage Coricancha project in Peru (Topia, Durango).
  • Prize Mining Corp. disclosed its failure to file its annual financial statements for the fiscal year ended August 31, 2018. As a result, the British Columbia Securities Commission issued a cease trade order on Jan 7, 2019 against the company and securities have been halted from trading on the TSX Venture Exchange. The company is working to finalize and file the needed documents and seek to have the cease trade order revoked. (Manto Negro, Coahuila).
  • Riverside Resources Inc. outlined its corporate outlook for 2019. Highlighted in it the presence of exciting drill targets at Cecilia in Sonora and Peñoles in Durango, as well as the advancing of potential joint venture partnerships and strategic alliance discussions with major companies. Riverside expects to expand outside of Mexico, beyond its participation in Croesus Gold Corp. Partner-funded exploration is expected to commence at La Silla project in Sinaloa.
  • Americas Silver Corp. and Pershing Gold Corp. announced their respective shareholders have provided the requisite approvals for their previously announced business combination (Cosala, Sinaloa).

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

On the image below, quartz-sulfide sheeted veinlets with silicified halos in argillitized fragmental tuff on a project in Jalisco. Picture by Jorge Cirett.

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


Plagioclase lined epidote patches and veinlets in andesitic volcanic rocks in  Jalisco. Picture by Jorge Cirett.

By Jorge Cirett

During the 48th week of the year (November 26th to December 2nd, 2018), at least 16 press releases were announced by companies working in Mexico. Minaurum, Mexus Gold and Harvest Gold released news on exploration. Impact Silver and Santacruz Silver released third quarter results; America Silver increased production and Goldcorp is commissioning a new plant. Silver Spruce and SilverCrest announced news on financing. Endeavour Silver presented results from drilling. Americas Silver, Telson Mining, Candente Gold, Aura Silver and Firma Holding presented news on deals and corporate issues. ON MEXICO ISSUES, Andrés Manuel López Obrador was sworn as Mexico’s president for the next six years. ON EXPLORATION, In Sonora, Minaurum Gold released high grade gold results from surface sampling of a new vein at its Alamos property; Mexus Gold continues drilling at its Santa Elena project. In Chihuahua, Harvest Gold informed on drilling at its Cerro Cascaron project in Chihuahua. ON MINING, Impact Silver and Santacruz Silver presented quarterly reports. Americas Silver increased production rates at Cosalá, in Sinaloa, and Goldcorp produced first gold on its pyrites plant in Peñasquito, Zacatecas. ON FINANCING, Silver Spruce was granted an extension on its financing round. SilverCrest is securing a $30.6 M investment by SSR Mining. ON RESOURCES AND DEVELOPMENT, Endeavour Silver reported high-grade intersections from Bolañitos, in Zacatecas.  ON DEALS AND CORPORATE ISSUES, Americas Silver and Pershing Gold are to complete a business combination. Telson Mining announced the amending of a loan agreement with Nyrstar. Candente Gold and Sun River signed an agreement on El Oro tailings in Estado de Mexico. Aura Silver is to change name to Aura Resources Inc. Grace Point Mining owns now the Magistral project in Sinaloa.

ON MEXICO ISSUES

  • On December 1st 2018, Andrés Manuel López Obrador, a life-long left wing politician, took charge as Mexico’s president for the next six years (2018-2024).

ON EXPLORATION

  • Minaurum Gold Inc. released high grade gold assays from rock chip sampling on the Alessandra vein at its Alamos project in Sonora.The new vein is the first showing high grade gold in the project, measures more than 4 m in width, can be clearly traced for 1.1 km and topography suggest it might extend for another kilometer. Highlighted rock chip samples include: 0.4 m @ 17 ppb Au, <1 g/t Ag, 2.22% Cu, 0.98% Pb, 2.04% Zn; 1.0 m @ 9 ppb Au, 16 g/t Ag, 0.04% Pb, 0.06% Zn; 1.0 m @ 8 ppb Au, 6 g/t Ag, 1.55% Cu; 0.3 m @ 102,000 ppb Au (102 g/t Au), 29 g/t Ag, 1.94% Cu, 0.07% Pb, 0.25% Zn; 1.0 m @ 619 ppb Au, 4.63% Cu; 0.5 m @ 65 ppb Au, 4 g/t Ag, 2.97% Cu, 0.64% Pb, 4.90% Zn.
  • Mexus Gold US. continues drilling at its Santa Elena project in Sonora (not to be mistaken with First Majestic’s Santa Elena mine, also in Sonora), and is now on its 7th hole. “Drill holes proved the continuity at depth of the main quartz vein varying in width from 0.75 m up to 2.0 meters at 25 to 35 meters deep with a dip angle of 45 degrees to the East”. A shallow dipping shear-fault zone consisting of fault-gouge-mylonite with siderite, hematite and quartz fragments has also consistently being intercepted with 7 to 12 m widths. Holes onward from hole 5 are targeting deeper parts of the Julio vein.
  • Harvest Gold Corp. informed three holes at the Cascarita high grade prospect at its Cerro Cascaron project in Chihuahua have been completed, after delays by unexpected heavy rains at the start of the drilling campaign. The rig is being moved by helicopter to drill the Serpiente Dorada and San Pedro targets.

ON MINING

  • Impact Silver Corp. released third quarter 2018 results. Mill throughput was 42.23 K tonnes @ 165 g/t Ag, to produce 179.5 K Oz Ag. Revenues for the quarter were $3.1 M, EBITDA -$1.5 M, a net loss of $1.4 M, of which $0.4 M was amortization and depletion.The focus now is on development of areas of higher grade ore. Impact is currently raising a non-brokered financing, the fourth capital raise in company history (San Ramón, Estado de México).  
  • Americas Silver Corp. informed production was increased to over 1,700 tonnes per day (tpd) during October at its San Rafael mine in the Cosalá district in Sinaloa.
  • GoldCorp Inc. announced first gold has been achieved at its Peñasquito’s Pyrite Leach Project (PLP) in Zacatecas, Mexico. “Commissioning commenced in the third quarter of 2018 and the PLP is now processing 100% of the existing plant tailings. The PLP plant is operating 24 hours a day and is continuing the planned ramp-up process”. Commercial production is now expected by the end of 2018.
  • Santacruz Silver Mining Ltd. reported third quarter 2018 financial results. At Veta Grande in Zacatecas, and Rosario in San Luis Potosi, 58 K tonnes were processed to produce 249.4 K Oz Ag at cash cost $27.40 and AISC of $31.07 per AgEq Oz. Santacruz recorded a net loss of $2.9 M during the period and a negative EBITDA of $2.74 M.  

ON FINANCING

  • Silver Spruce Resources Inc. was granted an extension by the TSX Venture Exchange to complete the previously announced non-brokered private placement to raise up to $1.5 M (Pino de Plata, Chihuahua).
  • SilverCrest Metals Inc. announced SSR Mining Inc. has agreed to invest $30.66 M (C$40 M) in a non-brokered private placement financing. As long as SSR hold more than 5% of SilverCrest outstanding shares,it is entitled to acquire up to a maximum of 9.9% of the shares, participation rights to maintain pro rata share ownership interest, a right of first refusal on any proposed royalty, stream of off take agreement and certain information rights to Las Chispas technical and scientific data.

ON RESOURCES AND DEVELOPMENT

  • Endeavour Silver Corp. reported high-grade intersections from the drilling program at the Bolañitos mine in Guanajuato. “A total of 55 drill holes from surface and 11,000 metres were completed by the end of October on seven different vein targets, all of which are located within four kilometres of the Bolanitos plant”. Some true width (TW)  highlighted intervals: 8.0 m @ 2.68 g/t Au, 6 g/t Ag; 1.2 m @ 13.17 g/t Au, 138 g/t Ag; 2.2 m @ 2.19 g/t Au, 53 g/t Ag; 2.2 m@ 2.05 g/t Au, 121 g/t Ag; 1.5 m @ 3.74 g/t Au, 49 g/t Ag; 1.3 m @ 2.92 g/t Au, 51 g/t Ag; 1.9 m @ 2.62 g/t Au, 18 g/t Ag; 1.5 m @ 8.66 g/t Au, 89 g/t Ag; 1.1 m @ 2.25 g/t Au, 1,415 g/t Ag; 1.6 m @ 6.79 g/t Au, 420 g/t Ag; 1.9 m @ 3.42 g/t Au, 102 g/t Ag; 1.4 m @ 2.38 g/t Au, 635 g/t Ag.

ON DEALS AND CORPORATE ISSUES

  • Americas Silver Corp. entered last September into a definitive agreement to complete a business combination with Pershing Gold, which owns the Relief Canyon project in Nevada. Relief Canyon is expected to produce 75-90 K Oz Au annually for at least seven years of mine life. Both Americas Silver and Pershing Gold shareholders have to vote on the transaction prior to a meeting on January (Cosalá, Sinaloa).
  • Telson Mining Corp. reached an agreement with Nyrstar Holdings Ltd. to amend the terms of its loan agreement. Among the main terms, Telson paid US$500 K plus interest and agreed to pay monthly installments of US$500 K plus interest until October 2019, at 10% per annum. Along with these payments, Telson will also pay 70% of any monthly cash flow, plus any monthly excess cash balance above US$500 K plus 50% of the monthly free cash flow generated by Telson’s Tahehueto project, once it declares commercial production (Campo Morado,Guerrero).
  • Candente Gold Corp. signed a definitive agreement with Sun River Gold Corp. in which Sun River has the option to further test and, if proven economic, develop and operate the Candente’s tailings project in El Oro, Estado de México. Besides an already made payment of US$170 K, Sun River has to make staged payments to complete US$300 K within 15 months from the signing on November 2017 and grant Candente a 10% of net profits life of mine royalty. The tailings contain an inferred resource of 1.27 K tonnes containing 119.9 K Oz Au, 3 M Oz Ag (El Oro, Estado de México).
  • Aura Silver Resources. Announced its shareholders approved the name change to Aura Resources Inc., and a five to one consolidation of the shares, on a meeting held on November 15th, 2018 (Taviche, Oaxaca).
  • Firma Holdings Corp. announced “that its subsidiary GracePoint Mining Corp. and MX Gold Corp., signed a confidential mutual release”. As a result, MX Gold no longer has any rights,ownership interests, liabilities, or obligations associated with the Magistral Project, and GracePoint Mining Corp. owns 100% of the Magistral project in Sinaloa.  

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

On the image above, plagioclase lined epidote patches and veinlets in andesitic volcanic rocks in  Jalisco. Picture by Jorge Cirett.

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

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By Jorge Cirett

During the 46th week of the year (November 12th to November 18th, 2018), at least 22 press releases were announced by companies working in Mexico. Radius, Prize Mining, Silver Viper, Riverside and Golden Minerals released advances in exploration. Sierra Metals, Mag Silver, Leagold and Starcore released quarterly reports. Telson released news on metallurgy. No financing was reported this week. Odyssey and Minera Alamos reported on advances at its properties, while Leagold presented an updated resource base. Pan American Silver and Tahoe agreed on Tahoe’s acquisition by PAS. Golden Minerals acquired a property. ON MEXICO ISSUES, CAMIMEX released figures on copper production in Mexico. ON EXPLORATION, In Sonora, Silver Viper released interesting results from the Virginia project in Sonora. Riverside informed on four new targets at its Cecilia project. In Chihuahua, Golden Minerals released rock sampling results from its Navegantes project. Radius finished drilling at the Amalia project, results pending. In Coahuila, Prize Mining released drill results from the Manto Negro project. ON MINING, Sierra Metals, Mag Silver, Leagold Mining and Starcore presented quarterly reports. Telson is investing on metallurgical studies at its Campo Morado mine in Guerrero. ON FINANCING, No relevant news. ON RESOURCES AND DEVELOPMENT, Odyssey Marine Exploration updated on the Don Diego project offshore Baja California Sur. Minera Alamos presented mapping and sampling results on the Divisadero zone of its Santana project in Sonora. Leagold announced a significant increase in open pit reserves at its Los Filos mine in Guerrero.  ON DEALS AND CORPORATE ISSUES, Goldplay lost its director, Laura Diaz, as she has been appointed as General Director of Mines in Mexico. Pan American Silver entered into an agreement to acquire Tahoe Resources. Golden Minerals optioned the Navegantes property in Chihuahua.

ON MEXICO ISSUES

  • According to CAMIMEX (in a note from opportimes) copper production in Mexico has been stable. During 2017 the world´s copper production was 19.7 M tonnes, a 2% decrease from 2016. Mexico produced 742 K tonnes of copper in 2017, against 766 K tonnes produced in 2016, a 3.1% decrement. Sonora produces over 84% of the country’s total, with Zacatecas and San Luis Potosi following suit. Coming additions to production include El Boleo in Baja California Sur, which is to double its production to 28.5 tonnes; Media Luna in Guerrero is to add 21 K tonnes in 2022 and El Pilar project in Sonora could add 36 K tonnes in 2020.

ON EXPLORATION

  • Radius Gold Inc. completed drilling at its Amalia project in Chihuahua. Nine holes, for a total of 1,909 m were diamond drilled in a program funded by Pan American Silver under a JV. The Campamento, Guadalupe, San Pedro and Dulces Nombres targets were tested across a strike length of 1.8 Km “following the trace of a large regional fault and associated surficial epithermal gold and silver mineralization”. Results pending.
  • Prize Mining Corp. released results from the first four holes at the Manto Negro stratiform copper project in Coahuila. Core length drill intersections comprise 4.40 m @ 1.02% Cu, 28 g/t Ag; 3.55 m @ 1.69% Cu, 28 g/t Ag at El Granizo; 4.10 m @ 0.88% Cu, 49 g/t Ag; 3.40 m @ 1.58% Cu, 122 g/t Ag at El Pilar Grande. At El Rincon, 1.6 Km north from El Pilar Grande, rock channel sampling averaged 3.41 m @ 2.13% Cu, 63 g/t Ag.
  • Silver Viper Minerals Corp. released the first batch of analyses from its initial drilling program at La Virginia project, in Sonora. Results have been received for five of the eight holes from which samples were submitted, with relevant intervals comprising: 9.70 m @ 1.20 g/t Au, 58 g/t Ag (2.03 g/t AuEq), including 2.72 m @ 3.34 g/t Au, 133 g/t Ag (5.24 g/t AuEq); 12.6 m @ 1.04 g/t Au, 79 g/t Ag (2.17 g/t AuEq), including 3.85 m @ 1.88 g/t Au, 152 g/t Ag (4.05 g/t AuEq); 0.7 m @ 2.25 g/t Au, 49 g/t Ag (2.95 g/t AuEq); 8.50 m @ 1.26 g/t Au, 55 g/t Ag (2.05 g/t AuEq) including 1.89 m @ 2.43 g/t Au, 81 g/t Ag (3.58 g/t AuEq); 0.94 m @ 0.96 g/t Au, 49 g/t Ag (1.66 g/t AuEq). The reported holes were collared on Las Huatas zone, with the first two testing parallel veins to the main trend, whereas the last three tested the previously identified main trend, generally intercepting mineralization at expected depths, widths and grades. “The intercepts are characteristic of previous hits on the project, where gold and silver bearing quartz veining/stockwork/breccia fill is often hosted in close proximity to the fractured contact between andesites of the lower volcanic succession and pre-mineral dacite dykes. Mineralization is hosted by both lithologies with the intervals often exhibiting strong silica overprint”.
  • Riverside Resources Inc. informed rock sampling and mapping defined four new targets at its Cecilia project in Sonora. The recent work was conducted on a 50 square km area, checking on previous soil sampling results. The Casa de Piedra, Los Llanos, Cruz and Cruz II targets were outlined, forming structural corridors up to 2 km long of quartz veins (locally banded, locally bearing calcite), anastomosing quartz veins, veins and quartz stockworks that can be up to 30 m in width and locally up 100 m in width. Alteration assemblages in these zones include sericite, silica, kaolinite and buddingtonite. All these areas display anomalous gold values, of up to 2.6 g/t Au.
  • Golden Minerals Co. released rock sampling results from its recently optioned Navegantes project in Chihuahua. Navegantes covers two vein systems, Navegantes and San Pedro‐San Francisco) as well as a number of smaller subsidiary veins, with mineralization occurring as iron oxides within quartz veins ranging up to 2 m in width and 800 m in length. Highlighted samples comprise 1.0 m @ 1,585 g/t Ag; 1.45 m @ 759 g/t Ag; 1.1 m @ 639 g/t Au; 2.1 m @ 472 g/t Ag.

ON MINING

  • Sierra Metals Inc. presented its third quarter 2018 financial report. The company, that has two mines in Mexico and one in Peru, saw its EBITDA reduced 3% in a yearly basis to $18.8 M, due to the decrease in metal prices. At the end of the period, Sierra’s net debt was $30.7 M, and its cash and cash equivalents $30.7 M. At Bolivar in Chihuahua, quarter on quarter production was affected by heavy rains, but year on year production was still increased, with the goal of achieving 3,600 tonnes per day (tpd) in Q1 2019. At Cusi, in Chihuahua, the mill continues to run at the 650 tpd capacity. The additional mill being installed will increase capacity to 1,200 tpd early in 2019. Cash cost per CuEq Lb was $1.68 and AISC $2.35 per CuEq Lb at Bolivar, while at Cusi cash cost was $14.11 per AgEq Oz and AISC $19.08 per AgEq Oz. Surface drilling at Bolivar was 8,332 m, while 2,176 m were drilled from the underground mine. At Cusi, 6,569 m were drilled from the surface.
  • Mag Silver Corp. released its Q3 2018 financial results. At Juanicipio, in Zacatecas, over 16 km of underground development have been achieved, 32% of which was realized on the last nine months. Mag advanced $8.47 M to Minera Juanicipio to fund its 44% share of ongoing development. Fresnillo has reiterated production is to start by mid-2020. Exploration during the quarter completed 48 holes, for 46,060 m of drilling focused to convert inferred resources to indicated, and to trace the Deep Zone laterally and to depth. The company ended the period with cash and cash equivalents of $141.8 M.
  • Leagold Mining Corp. reported 2018 third quarter operating and financial results. At Los Filos in Guerrero, production totaled 42,617 Oz at AISC of $1,060 per AuOz by mining 7.4 M tonnes from the open pit at a grade of 0.65 g/t Au, and 172 K tonnes @ 6.26 g/t Au.
  • Starcore International Mines Ltd. reported production results for its second quarter of fiscal 2019 at its San Martin mine in Queretaro. During the quarter (ended October 31st), 81.4 K tonnes were milled @ 1.4 g/t Au, 43.5 g/t Ag, recovering 86.9% Au, 58.7% Ag, to produce 4,050 AuEq Oz. The Altiplano processing facility was put on maintenance and the sale of the asset is being considered.
  • Telson Mining Corp. announced its intention to retain Glencore Technology to test its patented metallurgical approach to increase zinc recoveries and zinc concentrate grade at its Campo Morado mine in Guerrero.

ON FINANCING

  • No Relevant News.

ON RESOURCES AND DEVELOPMENT

  • Odyssey Marine Exploration Inc. commented on its Q3 2018 report that a plea has been presented at the Tribunal Federal de Justicia Administrativa to oblige SEMERANAT (the Mexican environmental agency) to produce the requested environmental permit on the Don Diego offshore phosphate project in Baja California Sur.
  • Minera Alamos Inc. reported that mapping and surface sampling on the new Divisadero porphyry discovery at its Santana project, in Sonora. The work delineated a 200 x 300 m surface expression (still open) of the 95.7 m @ 0.85 g/t Au, 9.8 g/t Ag, 0.33% Cu drill intercept of porphyry style mineralization of a previous press release. Over 50% of 66 rock samples collected assayed between 0.1 and 2.2 g/t Au, with mineralization appearing to remain open under thin soil cover to the north and south. The Divisadero zone is 200 m north of the Nicho Norte breccia pipe.
  • Leagold Mining Corp. announced a significant increase in open pit mineral reserves at its Los Filos mine in Guerrero. Proven and probable reserves grew 122% compared with the 351 K Oz Au of December 2017, to reach 780 K Oz Au, contained in 40.5 M tonnes @ 0.60 g/t Au.

ON DEALS AND CORPORATE ISSUES

  • Goldplay Exploration Ltd. congratulated “its director, Ms. Laura Cristina Diaz Nieves, on her appointment as the next General Director of Mines in Mexico. As a result of this appointment, Ms. Diaz Nieves is required to relinquish her position as director of the Company at the end of this month” (San Marcial, Sinaloa).
  • Pan American Silver Corp. and Tahoe Resources Inc. entered into a definitive agreement for Pan American to acquire all of the outstanding shares of Tahoe, creating the world’s premier silver mining company. “Tahoe shareholders may elect to receive US$3.40 in cash or 0.2403 Pan American shares for each Tahoe share, subject in each case to pro-ration based on a maximum cash consideration of US$275 million and a maximum number of Pan American shares issued of 56.0 million, totaling US$1,067 million (the “Base Purchase Price”). The Base Purchase Price represents a premium of 34.9% to Tahoe’s volume weighted average price (“VWAP”) for the 20-day period ending on November 13, 2018……. At closing, existing Pan American and Tahoe shareholders will own approximately 73% and 27% of Pan American, respectively” (La Colorada, Zacatecas; El Escobal, Guatemala).
  • Golden Minerals Co. announced the acquisition of the 521 hectares, covered by six concessions, Navegantes property in Chihuahua. Golden holds an option to purchase six concessions totaling 521 hectares by paying $0.4M over three years.

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 above, magnetic biotite book from a porphyritic intrusive rock, attached to a field magnet in Jalisco. Picture by Jorge Cirett.

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

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By Jorge Cirett

During the 44th week of the year (October 29th to November 4th, 2018), at least 26 press releases were announced by companies working in Mexico. Prize Mining, Southern Silver, Kootenay, Excellon, Colibri, Golden Minerals and Galore released advances in exploration. Consolidated Zinc and Telson released news on mining, while Endeavour, Excellon and  Great Panther reported Q3 financial results. Aloro Mining and Sonoro Metals reported news related to financing. Goldplay and SilverCrest reported on advances on its properties, while Silver Bull presented an updated resource base. Marlin Gold and Golden Reign advance on their acquisition agreement and Colibri entered into a purchase agreement with Yaque Minerals. Golden Minerals is acquiring the Yoquivo property in Chihuahua. ON MEXICO ISSUES, CAMIMEX presented figures on the state of the mining industry in Mexico. ON EXPLORATION, In Sonora, Colibri described its El Mezquite and Jackie projects. In Chihuahua Golden Minerals released high-grade results from its Yoquivo project, and Kootenay presented interesting results from early exploration on its Mecatona project. In Coahuila, Prize Mining is doing regional exploration on its Manto Negro project. In Durango, Southern Silver presented significant results from drilling on its CLM West claim group. In Zacatecas, Galore has received permit to drill on its El Alamo claim. ON FINANCING, Sonoro has completed a private placement for $500 K. Aloro Mining completed its placement for gross proceeds of C$800 K. ON RESOURCES AND DEVELOPMENT, Goldplay reported results from sampling historical core at its San Marcial project in Sinaloa. Silver Bull presented an updated resource on its Sierra Mojada project in Coahuila. SilverCrest presented high-grade results from infill drilling at its Las Chispas project in Sonora. A PEA is to be completed for a 1,000 to 1,500 tonne/day underground operation. ON DEALS AND CORPORATE ISSUES, Golden Reign, Marlin Gold and Sailfish Royalties continue to advance its purchase agreement. Colibri Resource is to acquire Yaque Minerals S.A. de C.V. owned by OnTop Capital. Golden Minerals holds an option to acquire the Yoquivo property in Chihuahua.

ON MEXICO ISSUES

  • In AIMMGM’s past conference in October, Fernando Alanis from CAMIMEX (Cámara Minera de México) presented figures from the mining industry in Mexico. Mineral royalties collected US$220 M in 2017, adding up to US$631 M on the last four years. An additional US$248 M were invested by companies in the communities and environment where they are located. Just in mining duties over concessions amounted to US$132.9 M. In the attractiveness index for investment, Mexico has gone from the 11th place in 2011 to the 44th place in 2018. At the same time our direct competitors for investment in the mining industry are doing better, Peru passed from the 39th to the 19th position, and Chile from the 6th to the 8th position. Points suggested to make of Mexico a mining country include improvements in security, a better infrastructure (railways, ports), certainty on land rights, a common ground with other mining countries in fiscal terms, administrative efficiency in the application and issuing of mining concession titles and certainty and transparency in the timely granting of permits.

ON EXPLORATION

  • Prize Mining Corp. engaged a consultant to compile a GIS database for a regional exploration program on its 17,659 ha Manto Negro project in Coahuila. The 3,000 m drill program continues with its focus on the Granizo and Pilar Grande areas.
  • Southern Silver Exploration Corp. reported drill results from its CLM West claim group, adjacent to its Cerro Las Minitas project in Durango. One of three holes intercepted 3.0 m @ 168 g/t Ag, while the other two returned strong (up to 0.1%) arsenic and antimony anomalies. “The mineralization represents the first significant silver intercept identified on the CLM West claim group where drilling is targeting new Ag-Au epithermal systems”.
  • Kootenay Silver Inc. staked 2,857 ha in Chihuahua, creating the Mecatona project. The Ag dominant epithermal system is hosted in veins and breccias, with one anomalous structure running for more than 1.7 km, and another zone hosting stockworks and quartz veinlets in an 80 m wide argillic alteration zone. Results from 78 samples collected at the property are as high as 735 g/t Ag, 6.94 g/t Au, 3.5% Pb, 8.0% Zn.
  • Excellon Resources Inc. received title to concessions that increases its land position to over 45,000 hectares on its consolidated “Evolución” property, within the Miguel Auza district in Durango, along strike to HECLA’s San Sebastian mine. As announced in previous press releases, initial drilling has already shown broad mineralized intersections with anomalous Au, Ag, Pb, Zn, “including discrete higher‐grade zones of carbonate veining, bladed calcite and silica with galena, sphalerite and pyrite”.
  • Colibri Resource Corp. described the El Mezquite and Jackie projects in Sonora, its new properties through the acquisition of Yaque Minerals S.A. de C.V. from On Top Capital Ltd. The 180 hectares Mezquite project contains an alteration zone 2 km by 1 km , within which are at least four zones of sulfide oxidation related to contacts with a silicified feldspar porphyry. Assay results from 321 rock chip samples returned 42 samples over 0.1 g/t Au, averaging 0.74 g/t Au and up to 3.41 g/t Au, 198 g/t Ag. The 1,130 ha Jackie project is 2 km south of El Mezquite, and abuts to the east with the Santana project, owned by Minera Alamos.
  • Golden Minerals Co. released high-grade results from sampling at its Yoquivo project in Chihuahua. Highlighted results comprise 6 m @ 5.9 g/t Au, 937 g/t Ag; 6 m @ 1.7 g/t Au, 399 g/t Ag from the Pertenencia vein. 4 m @ 2.3 g/t Au, 489 g/t Ag from the Central breccia zone. 2.9 m @ 1.7 g/t Au, 345 g/t Ag from the San Francisco vein. To date 756 samples have been collected, identifying a series of low-sulfidation quartz veins and breccias. A regional exploration program was launched to search for additional veins.
  • Galore Resources Inc. has been granted permits to begin a 12-hole, 3,000 m diamond core drill program at its El Alamo claim in Zacatecas. El Alamo consists of Cretaceous sediments, mostly limestone with some siltstone and chert, and major faults bounding the project. Alteration and mineralization are represented by silicification and iron-oxide bodies after sulfides. Some of the higher grade gold values are associated with extensively iron-oxide jasperoid breccias. A shallow drill percussion camping collared 35 holes in 2012, and defined a 500 long by 200 wide target zone.

ON MINING

  • Consolidated Zinc Ltd. presented its September 2018 quarterly activities report. The Group entered a 12 month toll treatment and offtake purchase agreement with Grupo Mexico to treat its ore at the Santa Eulalia’s concentrator plant, with mining at the Plomosas mine in Chihuahua beginning on September 13th 2018. A detailed costing study (DCS) was completed and incorporated into a bankable feasibility study (BFS). “During the quarter the Mexican Environmental Authority (PROFEPA) provided the Company with an MIA Exception (EPA exception) for the mine and processing plant area”. Cash balance at the end of the period was $0.61 M.
  • Telson Mining Corp. reported concluding a renewable power purchase agreement for its Campo Morado mine in Guerrero. The ten-year agreement sets the price for consuming 42.00 GW per year at a price that is 32% lower than the last nine-month average price paid at the site.
  • Endeavour Silver Corp. reported third quarter 2018 financial results. During the period silver production (1.43 M Oz) increased 13% and gold (12,968 Oz) decreased by 5%, with a silver equivalent production of 2.4 M Oz, and the Terronera pre-feasibility study was completed with improved project economics. On the financial side a net loss of $5.5 M was recorded, with EBITDA decreasing 8% to $5.6 M, mine operating cash flow decreased 20% to $9.6 M, cash cost rose to $8.86 per Oz Ag (net of gold credits) and All-in sustaining cost fell to $16.14 per Oz Ag, with a working capital of $57.4 M, whilst $5.6 M were raised through ATM financing.
  • Excellon Resources Inc. reported financial results for the third quarter 2018. During the period 10,974 of ore were produced, 17,907 tonnes processed (ore and stockpile), grading 416 g/t Ag, 3.47% Pb, 4.33% Zn (for ore) and 151 g/t Ag,1.36% Pb, 1.45% Zn (stockpile), recovering 89.9% Ag, 74.2% Pb, 78.2% Zn to produce 171.2 K Oz Ag, 824 K Lb Pb, 1,005 K Lb Zn. Revenue was $2.6 M ($7.6 M a year earlier) for a gross loss of $3.5 M from operations, cash cost of $29.94 per Ag Oz and All-in sustaining cost of $44.02 per Ag Oz. Financial results were impacted by lower production, lower by-product prices and associated price adjustments. Management changes were made at the Platosa mine, and now production and development rates have increased.
  • Great Panther Silver Ltd. presented third quarter 2018 financial results. During the period 92.9 K tonnes were milled to produce 448.8 K Oz Ag, 4,737 Oz Au (adding to 1.023 M Oz AgEq) at cash cost $12.79 per Ag Oz ($13.59 per AgEq Ag Oz), all-in sustaining cost $19.74 ($16.56 per AgEq Oz). The revenue was $11.7 M, with a net loss of 3.642 M, EBITDA of $(3.679) and a networking capital at end of period of $57.9 M. Lower metal prices, lower production levels and a large concentrate load that could not be shipped before the end of the period impacted on the lower results.

ON FINANCING

  • Aloro Mining Corp. closed a non-brokered private placement for gross proceeds of C$800 K. Agnico Eagle, which owns 8.7% of Aloro shares, bought half the issued shares. (Los Venados, Sonora).
  • Sonoro Metals Corp. completed a non-brokered private placement, for gross proceeds of $500 K (Cerro Caliche, Sonora).

ON RESOURCES AND DEVELOPMENT

  • Goldplay Exploration Ltd. reported results from sampling historical drill core from its San Marcial project in Sinaloa. These results are said to support the open pit potential for the historical NI-43-101 resource at the property. Highlighted results comprise 47.8 m (TW) @ 93 g/t AgEq (including 17.3 m @ 160 g/t AgEq); 42.0 m @ 61 g/t AgEq (including 24.8 m @ 79 g/t AgEq); 9.4 m @ 126 g/t AgEq.
  • Silver Bull Resources Inc. provided an updated NI43-101 resource report for the Sierra Mojada project in Coahuila. The open pit resource includes a high grade zinc zone of 13.5 M tonnes @ 11.2% Zn and a high grade silver zone with 15.2 M tonnes @ 114.9 g/t Ag. The total measured and indicated resources 70.4 M tonnes @ 38.6 g/t Ag, 3.4% Zn containing 5.354 billion pounds zinc and 87.4 M ounces silver.Sierra Mojada Resource table1
  • SilverCrest Metals Inc. is to complete a preliminary economic assessment (PEA) for Las Chispas project in Sonora. A 1,000 to 1,500 tonne per day underground mining operation is being considered, with a counter-current decantation facility and Merrill Crowe recovery circuit similar to the nearby Santa Elena and Mercedes mines. Cyanidation with a possible add-on flotation circuit followed by intense leaching is being evaluated for the higher-grade ore, to raise the 86% Ag, 98% Au recovery with standard cyanidation only. SilverCrest is proceeding with the construction of a 500 m long, 4.5 m wide, 4.0 m high decline, and drifting 600 to 800 m along the mineralized structure to collect information on vein grade, width continuity, grade reconciliation, mineability and bulk sampling.
  • SilverCrest Metals Inc. reported the best drill intercept to date for its Las Chispas project in Sonora. Results from 7 drill holes from the in-fill program were released, with highlighted intervals (TW) comprising 9.9 m @ 14.4 g/t Au, 2,132 g/t Ag (this is the best intercept to date, including 4.5 m @ 30.3 g/t Au, 4,498 g/t Ag); 3.8 m @ 6.78 g/t Au, 1,090 g/t Ag; 3.5 m @ 33.06 g/t Au, 2,092 g/t Ag; 11.1 m @ 3.99 g/t Au, 580 g/t Ag; 5.1 m @ 4.16 g/t Au, 197 g/t Ag; The weighted average for the five holes on the Area 51 is 6.0 m @ 11.41 g/t Au, 1,369 g/t Ag. A total of 351 holes have been collared, for 94,735 m of core, with 119 drill intercepts grading more than 1,000 g/t AgEq.

ON DEALS AND CORPORATE ISSUES

  • Sailfish Royalty Corp. announced its shareholders voted in favor of the restructuring of the company’s gold stream on the San Albino project. The stream restructuring is a condition to the closing of the transaction in which Golden Reign Resources Ltd. will acquire all issued shares of Marlin Gold Mining Ltd. (Trinidad, Sinaloa).
  • Marlin Gold Mining Ltd. shareholders voted in favour of a special resolution to approve the plan of arrangement and certain connected transactions, pursuant to which Golden Reign Resources Ltd. (“Golden Reign”) will acquire all of the issued and outstanding shares of Marlin (Trinidad, Sinaloa).
  • Golden Reign Resources Ltd. and Marlin Gold Mining Ltd. have been granted the final court order from the Supreme Court of British Columbia approving the plan of arrangement pursuant to which Golden Reign will acquire all of the issued and outstanding common shares of Marlin (Trinidad, Sinaloa).
  • Colibri Resource Corp. entered into a share purchase agreement with OnTop Capital Ltd. to purchase all issued and outstanding shares of Yaque Minerals S. A. de C.V., a wholly owned subsidiary of OnTop. Yaque assets consist of El Mezquite and Jackie mineral exploration properties close to the Santana project owned by Minera Alamos in Sonora. “As consideration for the Transaction, Colibri has agreed to issue a convertible debenture in the amount of $1 million CDN bearing an annual interest rate of 2.5% which is convertible at any time, in whole or in part, over the next 5 years into common shares of Colibri at $0.20 per share for a total of up to 5 million shares”.
  • Golden Minerals Co. holds an option to purchase the six concessions that comprise the 2,367 hectares Yoquivo property in Chihuahua, for payments totaling $0.5 M over four years and subject to a 2% NSR royalty.

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 above, intermediate composition dike with chilled margins intruding andesitic volcanic rocks in Jalisco. Picture by Jorge Cirett.