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

Quartz stockwork veining

By Miguel A Heredia

During the 46th week of the year (November 14th to November 20th, 2022), at least 15 press releases were announced by companies working in Mexico, and 3 news published by the media with five reporting resources and developments of their properties, four communicating production and financial results, three informing on exploration results, three commenting on Mexican issues, one disclosing deals and corporate issues, one discussing social issues, and one announcing financing issues. ON MEXICO ISSUES, The mining industry is one of the industries that consumes the least vital liquid and, at the same time, the one that acquires it at the highest cost, refuting the myth about water consumption in mining. Alamos Gold, GoGold, Aztec Minerals, Silver Tiger, and Minaurum Gold reported the best drilling intercepts in Mexico on the third week of November, 2022. ON EXPLORATION, In Sonora, Aztec Minerals reported results for five drill holes from the recently completed phase 3 drill program at its Cervantes project, Tocvan announced that initial drilling is ongoing at its El Picacho project, and Minaurum provided an update on the underground rehabilitation work at the historical Promontorio mine within its Alamos Silver project. ON MINING, Starcore reported Q2, 2022 production and financial results from its San Martin mine in Queretaro. MAG Silver announced Q3, 2022 production and financial results from its Juanicipio project in Zacatecas. US Antimony reported September-October production results. SilverCrest reported Q3, 2022 production and financial results from its Las Chispas project in Sonora. ON FINANCING, Vizsla closed its previously announced bought deal financing for gross proceeds of $CAD 34.5M (Panuco project, Sinaloa).  ON RESOURCES AND DEVELOPMENT, Silver Tiger released results from its on-going drilling program at its El Tigre project in Sonora, and provided an update on the underground rehabilitation of the El Tigre Mine. Gatos Silver announced that it has filed a NI 43-101 technical report to disclose a Mineral Resource and Mineral Reserve update for its Los Gatos project, Chihuahua. Alamos Gold extended high-grade mineralization at its Puerto del Aire Deposit within Mulatos district, Sonora. GoGold released strong results from the new drilling program at its Los Ricos South Main Area and at the newly acquired Eagle concession in Jalisco. Zacatecas Silver announced its initial Mineral Resource Estimate (MRE) at its Esperanza Gold project in Morelos. ON DEALS AND CORPORATE ISSUES, Zacatecas Silver entered into an agreement with Gold Standard Media and with Future Monet Trends to raise awareness of the company`s shares among investors (Esperanza Gold project, Morelos). ON SOCIAL RESPONSIBILITY, Fundación Grupo México in alliance with the Government of Jalisco, promoted the forest recovery in the Municipalities of Sayula, Encarnación de Díaz and Ocotlán through the Ministry of Environment and Territorial Development (SEMADET) in coordination with the Intermunicipal Boards of the Environment (JIMA) and the Jalisco Solidarity Volunteers.

ON MEXICO ISSUE

  • The mining industry is one of the industries that consumes the least vital liquid and, at the same time, the one that acquires it at the highest cost, while agricultural use, which represents 77% of national water consumption, does not contribute any payment for it to the public treasury. Despite the fact that it only consumes 1.4% of the country`s water, the authorization of concessions for the use of this resource for mining constitutes the main source of income for this concept of the Ministry of Environment and Natural Resources (SEMARNAT) and the National Water Commission (CONAGUA).  According to data from the Mining Chamber of Mexico (CAMIMEX), around 50% of government incomes from payment of rights for the use of water in the country are those contributed by mining companies. The Mexican territory is divided in four availability zones and, depending on the zone in which it operates, is the amount that concessionaires must pay for each cubic meter. Mexican mining pays up to MXP $26 for each cubic meter of water, while the average for the different industries is MXP $14. Municipalities pay only MXP $0.58. Meanwhile, the agricultural and livestock sectors, which are the main consumers in the country, do not pay rights for concessions for the use of water and despite this, these users tend to blame mining for the shortage. In Mexico, there are two types of concessions for the use of water: groundwater (located in subsoil aquifers) and surface water (found in rivers and lakes). According to CONAGUA, the main uses of this water resource are agricultural and livestock, which together consume approximately 76.7%; It is followed by urban public use, which is equivalent to 14.1%; the use for electricity generation with 5.1% and industries, whose consumption amounts to 4.1%. Of this amount, 0.9% corresponds to the mining sector.  It refutes the myth about water consumption in mining.
  • Alamos Gold Inc, GoGold Inc, Aztec Minerals Corp, Silver Tiger Metals Inc, and Minaurum Gold Inc reported the best drilling intercepts in Mexico on the third week of November, 2022. Details are shown in the table below:

ON EXPLORATION

  • Aztec Minerals Corp., reported results for five drill holes from the recently completed phase 3 drill program at its Cervantes project in Sonora. Highlights of the drilling include hole CAL22-027 in the West-Central area of the California Zone with 0.68 g/t Au over 120m; and hole CAL22-029, a step out extending the California Zone to the North, with 0.77 g/t Au over 57m.  These results have expanded the footprint of the known extents of the mineralized and altered California quartz feldspar intrusive complex to the North. “The area currently being drilled measures approximately 900 meters long E – W by 730 meters wide, with demonstrated, continuous mineralization of up to 170 meters in depth. The porphyry gold-copper mineralization is still open in all directions”.
  • Tocvan Ventures Corp., announced that initial drilling is ongoing at its El Picacho project in Sonora. The drilling program is focused on two primary areas within the San Ramon prospect: Las Guijas where underground chip samples range from 0.5 to 8.2 g/t Au, with an average of 3.6 g/t Au, and San Ramon where underground samples range from 0.3 to 22 g/t Au, with an average of 5 g/t Au. The property is currently permitted for 14 drill pads. El Picacho is host to several other target areas permitted for drilling that span across the 24 km2 project area.  
  • Minaurum Gold Inc., provided an update on the underground rehabilitation work at the historical Promontorio mine within its Alamos Silver project. It informed that has successfully accessed and is dewatering the main haulage level along with clearing crosscuts in the El Tirito area of the mine, which lies approximately 300m from the Promontorio adit entrance. Approximately 200 tonnes of ballast and 50 tonnes of backfill have been removed from the first 300 m of the haulage level and stockpiled outside the mine entrance. Three of the five service holes that were drilled to provide air, water, and electricity to facilitate underground rehabilitation efforts intercepted the Promontorio Vein. The most significant drill intercept encountered 98 g/t Ag, 3.6% Pb, and 7.9% Zn over 5.8m. In addition, sampling and mapping of dumps at Promontorio revealed a boulder of massive sulfide vein assaying 3,320 g/t Ag, 54.7 g/t Au, 25% Cu, 6.5% Pb, and 1.1% Zn. “The boulder, measuring roughly a meter across, is an indication of the type of grades exploited by early miners at Promontorio”.

ON MINING

  • Starcore International Mines Ltd., reported Q2, 2022 production and financial results from its San Martin mine in Queretaro. The company milled 57,165 tonnes of 1.46 g/t Au and 13 g/t Ag with metallurgical recoveries of 87.14% and 47.86% respectively, to produce 2,452 Oz AuEq.
  • MAG Silver Corp., announced Q3, 2022 production and financial results from its Juanicipio project in Zacatecas, where it owns 44% of the property and Fresnillo plc owns the remainder 56%. The company reported on a 100% basis, that 180,808 tonnes of 513 g/t Ag were processed through the Fresnillo and Saucito plants to produce 2.42M Oz Ag, 4,901 Oz Au, 3M Lb Pb, and 4.56M Lb Zn. MAG reported a net income of USD $8.23M and cash of $USD 39.5M (Juanicipio had cash on hands of $USD 18.2M). Pre-commercial production sales totaled USD $49.7M, less USD $18.1 in mining and transportation costs and USD $6.4M in depreciation and amortization charges, netting USD $25.2M in gross profit by Juanicipio. The company also reported a cash balance at the end of the quarter of USD $18.2M down from USD $37.5M at the end of Q2, 2022.
  • US Antimony Corporation reported September-October production results. The company milled 1,116 tonnes of 0.87 g/t Au and 96 g/t Ag from its Los Juarez Mine in Querétaro. In addition, the company announced that assay results from the previously announced soil sampling and rock chip programs on the 1km x 3 km grid at Los Juarez have been received with analysis values for Sb, Au, Ag, and trace elements. These results are being tabulated and assessed. Geologist and Geophysicist in Mexico have just completed the Geophysical Survey and are in the process of interpreting the results and generating a report. This report may be available prior to Q4 but most likely will be published early in Q1 of 2023.
  • SilverCrest Metals Inc., reported Q3, 2022 production and financial results from its Las Chispas project in Sonora. The company produced 4,121 Oz Au and 373.5K Oz Ag (731.6K Oz AgEq) and had its first metal sales of 140.3K Oz Ag at an average price of USD $19.38 per Oz Ag, generating USD $2.7M in revenue. As of September 30, 2022 the company remains well-funded with cash and cash equivalents of USD $88.6M, and a debt balance of USD $90M.

ON FINANCING

  • Vizsla Silver Corp., closed its previously announced bought deal financing of 23.8M units of the company at a price of CAD $1.45 per unit for gross proceeds of $CAD 34.5M. Net proceeds will be used to advance the exploration and development of its Panuco project in Sinaloa, including the delivery of an updated mineral resource estimate in Q4, 2022, as well as for working capital and general corporate purposes.

ON RESOURCES AND DEVELOPMENT

  • Silver Tiger Metals Inc., released results from its on-going drilling program at its El Tigre project in Sonora, and provided an update on the underground rehabilitation of the El Tigre Mine. The most significant drill intercept was encountered in hole ET-22-378 with 0.12 g/t Au, 469 g/t Ag, 0.66% Cu, 0.5% Pb, and 0.6% Zn (525 g/t AgEq) over 6.5m, including 0.25 g/t Au, 1,002 g/t Ag, 0.39% Cu, 0.6% Pb, and 0.7% Zn (1,096 g/t AgEq) over 1m at the Benjamin Vein Zone, plus 0.15 g/t Au, 212 g/t Ag, 0.12% Cu, 2.5% Pb, and 6.9% Zn (524 g/t AgEq) over 6.9m, including 0.28 g/t Au, 940 g/t Ag, 0.6% Cu, 6.9% Pb, and 16.2% Zn (1,720 g/t AgEq) over 0.8m at the Shale Zone. The company also reported that the underground rehabilitation of the historic El Tigre mine is progressing well. Silver Tiger reported that to date it has rehabilitated over 450m in level 7, which was the main portal to the mine. “Silver Tiger is still on schedule to reach the Sooy Vein and then begin underground drilling of this new discovery under the Northern end of the unmined portion of the Historic El Tigre Mine”.
  • Gatos Silver Inc., announced that it has filed a NI 43-101 technical report to disclose a Mineral Resource and Mineral Reserve update for its Los Gatos project, Chihuahua.
  • Alamos Gold Inc. reported new results from its ongoing drilling program and extended high-grade mineralization at its Puerto del Aire Deposit within Mulatos district, Sonora. Puerto Del Aire is a higher-grade underground deposit, adjacent to the main Mulatos pit, and is comprised of five zones including PDA1, PDA2, Gap, Victor and Estrella. Highlights of the drilling at PDA1 Zone include hole 21MUL051 with 32.24 g/t Au uncut ( 20.78 g/t Au cut) over a  true width (TW) of 5.30m; hole 21MUL019 with 4.26 g/t Au over a TW of 2.25m, plus 26.28 g/t Au uncut (20.44 g/t Au cut) over a TW of 4.60m; hole 21MUL014 with 4.43 g/t Au over a TW of 4.50m, plus 18.01 g/t Au uncut (15.27 g/t Au cut) over a TW of 6.15m; hole 21MUL016 with 3.64 g/t Au over a TW of 6m, plus 3.02 g/t Au over a TW of 1.50m, plus 3.12 g/t Au over a TW of 11.50m, plus 3.63 g/t Au over a TW of 26.05m; hole MUL21021 with 10.66 g/t Au over a TW of 5.90m, plus 4.20 g/t Au over a TW of 12.25m, plus 14.57 g/t Au over a TW of 2.75m, plus 10.86 g/t Au over a TW of 8.35m; and hole 21MUL015 with 4.90 g/t Au over a TW of 1.15m, plus 6.78 g/t Au over a TW of 10.50m, plus 4.99 g/t Au over a TW of 1.40m. Highlights of the drilling at PDA2 Zone include hole 22MUL039 with 4.06 g/t Au over a TW of 0.85m, plus 13.89 g/t Au uncut (9.26 g/t Au cut) over a TW of 10.35m; hole 22MUL053 with 8.75 g/t Au over a TW of 13.15m, plus 7.7 g/t Au over a TW of 6m, plus 8.90 g/t Au over a TW of 3m, plus 4.20 g/t Au over a TW of 12.95m; hole 22MUL058 with 7.62 g/t Au over a TW of 14.65m; hole 22MUL052 with 3.07 g/t Au over a TW of 1.50m, plus 32.60 g/t Au over a TW of 2.35m, plus 10.90 g/t Au over a TW of 1.50m, plus 11.40 g/t Au over a TW of 1.50m; and hole 22MUL046 with 4.01 g/t Au over 1.70m, plus 13.22 g/t Au over 4.50m. Highlights of the drilling at Victor-Gap Zone include hole 21MUL011 with 31.97 g/t Au uncut (11.80 g/t Au cut) over a TW of 12.90m. “Drilling to date has demonstrated the significant potential to further expand high-grade mineralization at Puerto Del Aire with the deposit open in multiple directions”.
  • GoGold Resources Inc., released strong results from the new drilling program at its Los Ricos South Main Area and at the newly acquired Eagle concession in Jalisco. Highlights of the drilling include hole LRGG-22-209 collared at Los Ricos South Main Area with 3.15 g/t Au and 276 g/t Ag (6.84 g/t AuEq or 513 g/t AgEq) over 33.2m, including 30.19 g/t Au and 2,588 g/t Ag (64.69 g/t AuEq or 4,852 g/t AgEq) over 3m, including 73.10 g/t Au and 5,620 g/t Ag (148.03 g/t AuEq or 11,103 g/t AgEq) over 1m; and hole LRGG-22-043 collared at the Eagle Concession with  0.67 g/t Au and 78 g/t Ag (1.72 g/t AuEq or 129 g/t AgEq) over 8.2m, plus 1.32 g/t Au and 216 g/t Ag (4.20 g/t AuEq or 315 g/t AgEq) over 20.7m, including 2.73 g/t Au and 428 g/t Ag (8.44 g/t AuEq or 633 g/t AgEq) over 9.3m, including 7.89 g/t Au and 999 g/t Ag (21.21 g/t AuEq or 1,591 g/t AgEq) over 2.5m, including 17.20 g/t Au and 2,130 g/t Ag (45.80 g/t AuEq or 3,420 g/t AgEq) over 0.70m. The purpose of the program is to better define the very high grade portions of the current deposit that may be amenable to bulk underground mining.  “The Company exploration team has been completing detailed mapping and sampling at Jamaica over the last year and sees the same structure that was drilled in the main zone at Los Ricos South extending for several kilometers over the Jamaica concessions.  This offers the potential for an additional bulk tonnage target in Los Ricos South, with continuity from the Main Area and Eagle”.
  • Zacatecas Silver Corp., announced its initial Mineral Resource Estimate (MRE) at its Esperanza Gold project in Morelos. A summary of the MRE is shown in the table below:

ON DEALS AND CORPORATE ISSUES

  • Zacatecas Silver Corp., entered into an agreement with Gold Standard Media and with Future Money Trends LLC to raise awareness of the Company’s shares among investors.  The engagement is for 12 months of services, with amounts payable as follows: USD $100K on acceptance of the TSX Venture Exchange, USD $100K within 3 months, USD $100K within 6 months and USD $100K within 9 months.  Subject to TSX Venture Exchange acceptance, the activities will commence late November, 2022 and are for a period of one year.

ON SOCIAL RESPONSIBILITY

  • Fundación Grupo México in alliance with the Government of Jalisco, promoted the forest recovery in the Municipalities of Sayula, Encarnación de Díaz and Ocotlán through the Ministry of Environment and Territorial Development (SEMADET) in coordination with the Intermunicipal Boards of the Environment (JIMA) and the Jalisco Solidarity Volunteers.

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

On the picture above, quartz stockwork veining from a low sulphidation epithermal vein system in a project in Sonora, Mexico.  Photo by Miguel A Heredia.

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

Fault Plane showing slickensides

By Miguel A Heredia

During the 44th week of the year (October 31st to November 06th, 2022), at least 21 press releases were announced by companies working in Mexico, and 2 news published by the media with six reporting resources and developments of their properties, six disclosing deals and corporate issues, five informing on exploration results, three commenting on Mexican issues, two announcing financing issues, and one communicating production and financial issues. ON MEXICO ISSUES, The Canadian government has told its Mexican counterpart that it is concerned about the investment climate in Mexico’s energy and mining sectors. The President of Mexico, Andres Manuel López Obrador stated that the rescue efforts of the bodies of 10 miners who were trapped in the El Pinabete mine, in Sabinas, Coahuila, were suspended due to a change of supplier. GoGold, GR Silver, Pan American Silver, and Southern Silver reported the best drilling intercepts in Mexico on the first week of November, 2022. ON EXPLORATION, In Sonora, Ranchero Gold provided an exploration update on its Daniela project, and Reyna Gold announced results from its on-going, district-scale exploration program at its La Gloria property. In Sinaloa, Prismo signed a definitive surface agreement with the Francisco Villa Ejido and commenced drill permitting for its Los Pavitos project. In Jalisco, Almadex mobilised an exploration team to commence a follow-up drill program at its San Pedro project. In Coahuila, Monumental provided an update of its currently on-going exploration program at its Jemi project. ON MINING, Capstone reported Q3, 2022 production and financial results from its Cozamine mine in Zacatecas. ON FINANCING, Kootenay increased its previously announced private placement from $4M to $4.35M, and granted an option to Red Cloud Securities Inc, to offer for sale an additional 15% of the number of units of the company at a price of $0.09 per unit (Columba project, Chihuahua). Xali Gold received advance net profits interest payment from Sun River Gold for the El Orito Tailings project in the State of Mexico.  ON RESOURCES AND DEVELOPMENT, Sonoro Gold announced that it has engaged SRK to prepare an NI43-101 compliant updated Mineral Resource Estimate for its Cerro Caliche project in Sonora. GoGold reported results from the second set of drill holes collared at the newly acquired Eagle concession on the Los Ricos South property in Jalisco. GR Silver released results from 38 infill drill holes in the resource update program underway at its Plomosas mine area in Sinaloa. Osisko provided an operational update on its San Antonio Gold project in Sonora. Pan American release results from 45 new infill and exploration drill holes collared at its La Colorada Skarn project in Zacatecas. Southern Silver announced results from its final 4 drill holes at its Cerro Las Minitas, Durango. ON DEALS AND CORPORATE ISSUES, Silverton Metals announced that its Board of Directors approved a change of the company’s name to Lodestar Battery Metals Corp (Peñasco Quemado project, Sonora). Ranchero Gold appointed its interim CEO and CFO (Santa Daniela project, Sonora). Pan American and Agnico delivered definitive binding offer to acquire Yamana. Sierra Madre entered into an amendment and restated the share purchase agreement with First Majestic in respect of the previously announced acquisition of La Guitarra mine in the State of Mexico.  Sierra Metals received letter of intent from Compañía Minera Kolpa for a proposed business combination. Xali Gold increased its ownership in the San Dieguito de Arriba plant in Nayarit from 30% to 50% by issuing 4,125,758 shares at a price of $0.066 to Magellan.  ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUE

  • The Canadian government has told its Mexican counterpart that it is concerned about the investment climate in Mexico’s energy and mining sectors. Mary Ng, Minister of International Trade, Export Promotion, Small Business and Economic Development of Canada, expressed this position to Raquel Buenrostro, Secretary of the Economy of Mexico. Minister Ng reaffirmed Canada’s commitment to advance in the implementation of the Treaty between Mexico, the United States and Canada (T-MEC) and to continue with the work carried out within the framework of initiatives such as the Economic Dialogue of Canada-Mexico High Level to deepen bilateral business, trade and investment ties and support inclusive and resilient economic growth. Two-way merchandise trade between the two countries was USD $41.7 billion in 2021. Mexico is Canada’s third-largest merchandise trading partner in a single country (after the United States and China).
  • The President of Mexico, Andres Manuel López Obrador stated that the rescue efforts of the bodies of 10 miners who were trapped in the El Pinabete mine, in Sabinas, Coahuila, were suspended due to a change of supplier, but will be resumed.
  • GoGold Resources Inc., , GR Silver Mining Ltd.,  Pan American Silver Corp.,  and Southern Silver Exploration Corp., reported the best drilling intercepts in Mexico on the first week of November. Details are shown in the table below:

ON EXPLORATION

  • Ranchero Gold Corp., provided an exploration update on its Daniela project in Sonora. The company reported that it has completed the follow-up work of the nine priority targets previously identified at the property. Ranchero Gold stated that the San Francisco, Carboneras Sur, Carboneras Este, Rincón, and Moritas Este targets have shown evidence of gold mineralization, related alteration and lithologies known to host significant gold deposits in the district. “Subsequent field efforts currently underway will include detailed mapping, systematic sampling and drone-based magnetic surveys designed to identify potential mineralized host rocks below surface”.
  • Reyna Gold Corp., announced results from its on-going, district-scale exploration program at its La Gloria property in Sonora. The company identified multiple mineralized zones with high grade gold, silver, and copper that align with major geophysical anomalies, silica alterations, and structural controls on the property. Highlights of the 8 rock sampling collected at La Republicana Zone returned values from 4.03 g/t Au up to 56.90 g/t Au; 7 samples ranging from 13 g/t Ag up to 47 g/t Ag; and 2 samples with 0.2% Pb and 0.5% Pb, with a single assay of 2.41% Cu. At Las Carmelitas zone, 7 rock samples returned 3 values of 0.11 g/t Au, 0.33 g/t Au, and 10.52 g/t Au; 5 samples ranging from 67 g/t Ag up to 116 g/t Ag; and 6 samples ranging from 1.53% up to 2.25% Cu. At Western Zone, 7 rock samples returned values from 2.51 g/t Au up to 16.60 g/t Au; 2 samples with values of 21g/t Ag and 249 g/t Ag; and a single sample with 1.15% Cu, 3.4% Zn, 1.3% Pb, 0.1 g/t Au, and 27 g/t Ag. At El Sombrero Zone, 7 samples returned gold values ranging from 1.1 g/t Au up to 23.6 g/t Au; 4 samples ranging from 149 g/t Ag up to 733 g/t Ag; 4 samples ranging from 0.68% up to 3.60% Cu; 4 samples ranging from 0.2% Pb up to 1.4% Pb, and 4 samples ranging from 0.1%Zn to 0.2% Zn. The company is presently conducting an IP survey at four target zones: La Republicana, Western, Las Carmelitas, and Main Zone. After completion of the IP geophysical survey, drilling will recommence in this area focused on La Republicana, Western, Las Carmelitas and Main Zone targets.
  • Prismo Metals Inc., signed a definitive surface agreement with the Francisco Villa Ejido, the surface owners over the Los Pavitos project in Sinaloa. This agreement is for two years and allows Prismo to carry out exploration work including drilling. The company has commenced drill permitting planned to begin in early 2023. Meanwhile, Prismo will continue with the geological mapping and sampling program to cover the remaining area to identify drill targets.
  • Almadex Minerals Ltd., mobilised an exploration team to commence a follow-up drill program at its San Pedro project in Jalisco. The drill program will target a recently identified structural trend associated with float rock of vein material, soil anomalies and old mining workings, where channel sampling has encountered 0.02 g/t Au and 138 g/t Ag over an interval of 6.8m, and 3.7 g/t Au and 168 g/t Ag over an interval of 4.2m. A total of 14 grab and chip samples collected on this trend averaged 0.6 g/t Au and 180 g/t Ag.
  • Monumental Minerals Corp., provided an update of its currently on-going exploration program at its Jemi project in Coahuila, which consists of detailed geological mapping, regional stream sediment sampling, ground radiometric geophysical surveys, and litho geochemistry. To date, the stream sediment sampling program, consisting of 47 samples has been completed. It returned 5 samples with values greater than 7.8 ppm dysprosium (Dy), 65.3 ppm neodymium (Nd); and up to 14.1 ppm Dy and 160 ppm Nd, defining four general areas of interest along the west and south portions of the company’s concessions, of which two are associated with known HREE mineralized (eudialyte bearing) peralkaline rock (Jemi Dyke Area and Veladora North). The remaining two areas with anomalous Dy and Nd concentrations were previously unrecognized as being prospective (Zone 2 and Zone 4). Follow-up exploration work to identify the source of the high REEs at these two areas will be undertaken during the current field program for quick delineation.

ON MINING

  • Capstone Copper Corp., reported Q3, 2022 production and financial results from its Cozamine mine in Zacatecas. The company mined 3,829 tonnes per day with an average grade of 1.86% and metallurgical recovery of 96.8%, to produce 36.74 M Lb Cu at a cash cost of USD $1.20 per Lb produced.

ON FINANCING

  • Kootenay Silver Inc., increased its previously announced private placement from $4M to $4.35M, and granted an option to Red Cloud Securities Inc, to offer for sale an additional 15% of the number of units of the company at a price of $0.09 per unit. If the offer for sale from Red Cloud is exercised in full, the total gross proceeds to the company will be $5M (Columba project, Chihuahua).
  • Xali Gold Corp., received advance net profits interest (NPI) payment from Sun River Gold, LLC for the El Orito Tailings project in the State of Mexico. Sun River has started making advance NPI payments of USD $15K per month to Xali Gold as part of the second extension agreement on the El Oro Tailings project, in El Oro, State of Mexico. Advanced NPI payments of USD $50K per month will be paid by Sun River once commercial production is reached (or first concentrate is produced or dore gold is poured) and during the first year of operation, after which normal 5% NPI payments are to be made.

ON RESOURCES AND DEVELOPMENT

  • Sonoro Gold Corp., announced that it has engaged SRK Consulting Inc., to prepare an NI43-101 compliant updated Mineral Resource Estimate for its Cerro Caliche project in Sonora. This updated Mineral Resource Estimate is to include an additional 7,200m of drilling completed in May 2022 which returned multiple higher grade gold intercepts and expanded several known mineralized gold zones within the concession.
  • GoGold Resources Inc., reported results from the second set of drill holes collared at the newly acquired Eagle concession on the Los Ricos South property in Jalisco. Highlights of the drilling include hole LRGAG-22-035 with 1.64 g/t Au and 265 g/t Ag (5.17 g/t AuEq or 387 g/t AgEq) over 110.6m, including 11.31 g/t Au and 2,198 g/t Ag (40.62 g/t AuEq or 3,047 g/t AgEq) over 11.5m, including 30.24 g/t Au and 6,392 g/t Ag (115.48 g/t AuEq or 8,661 g/t AgEq) over 3.5m, including 63.24 g/t Au and 12,729 g/t Ag (232.96 g/t AuEq or 17,472 g/t AgEq) over 1.5m, including 104.50 g/t Au and 13,742 g/t Ag (287.73 g/t AuEq or 21,580 g/t AgEq) over 0.90m; and hole LRGAG-22-032 with 1.36 g/t Au and 108 g/t Ag (2.79 g/t AuEq or 210 g/t AgEq) over 65.8m, including 2.96 g/t Au and 217 g/t Ag (5.85 g/t AuEq or 439 g/t AgEq) over 28.1m, including 7.17 g/t Au and 1,013 g/t Ag (20.68 g/t AuEq or 1,551 g/t AgEq) over 4.3m, including 25 g/t Au and 3,020 g/t Ag (65.27 g/t AuEq or 4,895 g/t AgEq) over 0.6m. “Mapping and geophysics indicate the Eagle structure extending in excess of 2.5km to the northwest, at which point it continues onto the Company’s previously owned Jamaica concessions”. “The Eagle concession connects the Company’s concessions held in the southern portion of its Los Ricos South project, including the Main area where the Initial Resource was released, to its northern concessions in Los Ricos South, which includes the Jamaica exploration target.  As a result, all of the concessions in Los Ricos South are now contiguous”. This offers the potential for an additional bulk tonnage target in Los Ricos South, with continuity from the Main Area and Eagle.
  • GR Silver Mining Ltd., released results from 38 infill drill holes in the resource update program underway at its Plomosas mine area in Sinaloa. Highlights of the drilling include hole PLI22-38 with 301 g/t Ag, 0.41 g/t Au, 1.6% Pb, and 2.1% Zn (471 g/t AgEq) over a true width (TW) of 15.9m, including 856 g/t Ag, 0.70 g/t Au, 1.3% Pb, and 2.3% Zn (1,052 g/t AgEq) over a TW of 3.9m; hole PL!22-23 with 268 g/t Ag, 1 g/t Au, 2.4% Pb, 1.7% Zn, and 0.2% Cu (518 g/t AgEq) over a TW of 36.5m, including 626 g/t Ag, 0.03 g/t Au, 1% Pb, 0.6% Zn, and 0.1% Cu (684 g/t AgEq) over a TW of 4.9m, plus 1028 g/t Ag, 5.11g/t Au, 8.3% Pb, 7% Zn, and 0.9% Cu (2,101 g/t AgEq) over a TW of 5.9m, including 2,667 g/t Ag, 1.27 g/t Au, 12.2% Pb, 6.9% Zn, and 0.3% Cu (3,431 g/t AgEq) over a TW of 2.2m; hole PLI22-24 with 1,159 g/t Ag, 0.53 g/t Au, 1.4% Pb, 1% Zn, and 0.8% Cu (1,354 g/t AgEq) over a TW of 0.20m, plus 135 g/t Ag, 0.39 g/t Au, 4% Pb, 1.7% Zn, and 0.2% Cu (365 g/t AgEq) over a TW of 7.1m, including 292 g/t Ag, 0.13 g/t Au, 3.1% Pb, 1.3% Zn, and 0.1% Cu (453 g/t AgEq) over a TW of 2m; hole PLI22-25 with 629 g/t Ag, 0.56 g/t Au, 9.2% Pb, 4% Zn, and 0.4% Cu (1,146 g/t AgEq) over a TW of 11.4m, including 1,791 g/t Ag, 0.23 g/t Au, 1.3% Pb, 1.4% Zn, and 0.1% Cu (1,917 g/t AgEq) over a TW of 1.4m; hole LP122-27 with 109 g/t Ag, 0.91 g/t Au, 3.5% Pb, 1.7% Zn, and 0.1% Cu (371 g/t AgEq) over a TW of 7.2m, including 212 g/t Ag, 2.74 g/t Au, 10.9% Pb, 4.1% Zn, and 0.22 % Cu (961 g/t AgEq) over a TW of 2.1; hole PLI22-30 with 344 g/t Ag, 0.04 g/t Au, 0.2% Pb, 0.3% Zn, and 0.1% Cu (370 g/t AgEq) over a TW of 1m, plus 2,251 g/t Ag, 0.12 g/t Au, 1.1% Pb, 0.1% Zn, and 0.6% Cu (2,365 g/t AgEq) over a TW of 0.5m, plus 1,697 g/t Ag, 0.21 g/t Au, 0.2% Pb, 0.2% Zn, and 0.6% Cu (1,792 g/t AgEq) over a TW of 0.1m, plus 134 g/t Ag, 0.05 g/t Au, 0.6% Pb, 2.7% Zn, and 0.1% Cu (273 g/t AgEq) over a TW of 3m, including 328 g/t Ag, 0.08 g/t Au, 1.1% Pb, 5% Zn, and 0.2% Cu (576 g/t AgEq) over a TW of 0.9m; hole PLIP22-30 with 69 g/t Ag, 2.67 g/t Au, 0.1% b, 0.2% Zn, and 0.2% Cu (353 g/t AgEq) over a TW of 10.8m, including 227 g/t Ag, 5.39 g/t Au, 0.3% Pb, 0.6% Zn, and 0.4% Cu (809 g/t AgEq) over a TW of 1.2m, plus 219 g/t Ag, 40.18 g/t Au, 0.3% Pb, and 1% Cu (4,074 g/t AgEq) over a TW of 0.5m; and hole PLIP22-42 with 40 g/t Ag, 0.9 g/t Au, 10.5% Pb, 9.8% Zn, and 0.4% Cu (852 g/t AgEq) over a TW of 6.5m. “GR Silver Mining’s infill drilling program is continuing in the Plomosas Mine Area, and to date has added 105 holes (7,330 m) of new drilling inside the historic Plomosas Mine since completion of the Company’s 2021 NI 43-101 mineral resource estimation”.
  • Osisko Development Corp., provided an operational update on its San Antonio Gold project in Sonora. The company reported that 1.1M tonnes of 0.58 g/t Au and 0.25 g/t Ag have been placed on the heap leach pad for an estimated total of 20,090 oz of Au and 8,818 oz of Ag. Osisko also reported that 10,149 Oz Au and 3,516 Oz Ag at recoveries to the end of the third quarter of 2022 of 50.5% for gold and 39.9% for silver total production have been produced from the heap leach pad as of October 27, 2022, of which 7,350 Oz Au were sold.
  • Pan American Silver Corp., release results from 45 new infill and exploration drill holes collared at its La Colorada Skarn project in Zacatecas. Highlights of the drilling are shown in the table below:

With the inclusion of these new drill holes, this area has been expanded to measure approximately 200 metres in diameter and up to 250 metres vertically.

  • Southern Silver Exploration Corp., announced results from its final 4 drill holes on the North Felsite-North Skarn targets at its Cerro Las Minitas, Durango. Highlights of the drilling include hole 22CLM-194 with 140 g/t Ag, 0.04 g/t Au, 0.01% Cu, 1.9% Pb, and 0.1% Zn (212 g/t AgEq or 5.2% ZnEq) over a true width (TW) of 2.3m, plus 386 g/t Ag, 0.17 g/t Au, 0.25% Cu, 6% Pb, and 4.7% Zn (827 g/t AgEq or 20.1% ZnEq) over a TW of 0.7m, plus 336 g/t Ag, 0.14 g/t Au, 0.16% Cu, 6.5% Pb, and 4.7% Zn (780 g/t AgEq or 18.9% ZnEq) over a TW of 2.6m, including 746 g/t Ag, 0.09 g/t Au, 0.12% Cu, 17.1% Pb, and 13.2% Zn (1,904 g/t AgEq or 46.3% ZnEq) over a TW of 0.6m; and hole 22CLM-193 with 124 g/t Ag, 0.02 g/t Au, 0.03% Cu, 1.4% Pb, and 0.4% Zn (195 g/t AgEq or 4.7% ZnEq) over a TW of 5.6m, including 219 g/t Ag, 0.02 g/t Au, 0.04% Cu, 2.5% Pb, and 0.6% Zn (333 g/t AgEq or 8.1% ZnEq) over a TW of 3m. “Drilling on these targets, which started in September 2021, has now tested a 400 metre strike-length of mineralization which wraps around the eastern and northern perimeter of the Central Intrusion and links previously identified mineralization in the Mina La Bocona and Skarn Front deposits. Twenty-five holes totaling 11,275 metres were completed in the two target areas to depths of up to 450 metres below surface”.

ON DEALS AND CORPORATE ISSUES

  • Silverton Metals Corp., announced that its Board of Directors approved a change of the company’s name to Lodestar Battery Metals Corp., to better reflects the company’s focus on exploration and development of lithium and silver projects (Peñasco Quemado project, Sonora).
  • Ranchero Gold Corp., made the appointments of its interim CEO and CFO (Santa Daniela project, Sonora).
  • Pan American Silver Corp. and Agnico Eagle Limited delivered definitive binding offer to acquire Yamana Gold Inc. Pan American would acquire all of the issued and outstanding common shares of Yamana, and Yamana would sell certain subsidiaries and partnerships which hold Yamana´s interest in its Canadian assets to Agnico Eagle, including the Canadian Malartic mine. “The consideration consists of 153,539,579 common shares in the capital of Pan American (“Pan American Shares”); USD$1.0 billion in cash contributed by Agnico Eagle; and 36,089,907 common shares in the capital of Agnico Eagle (“Agnico Eagle Shares”). Under the Binding Offer, each Yamana Share would be exchanged for approximately USD$1.04 in cash, 0.1598 Pan American Shares and 0.0376 Agnico Eagle Shares, for an aggregate value of USD$5.02 per Yamana Share based on the closing price of each Pan American Share and Agnico Eagle Share on November 3, 2022. The Binding Offer is not subject to any financing condition or additional due diligence”.
  • Sierra Madre Gold and Silver Ltd., entered into an amendment and restated the share purchase agreement with First Majestic Silver Corp., in respect of the previously announced acquisition of La Guitarra mine in the State of Mexico. The amendment states that (a) the 2% net smelter return royalty on La Guitarra will now be granted by Compañía Minera La Guitarra S.A. de C.V., to First Majestic prior to closing of the transaction, rather than rather than concurrently with closing as previously anticipated; and (b) certain governmental approvals will be required prior to closing of the transaction. All other material terms of the transaction remain unchanged. The company expects to complete the transaction by the end of 2022.
  • Sierra Metals Inc., received letter of intent from Compañía Minera Kolpa S.A. for a proposed business combination. A Special Committee of the independent members of Sierra Metals´ Board of Directors is exploring, reviewing and considering financing, restructuring and strategic options in the best interest of Sierra Metals.
  • Xali Gold Corp., increased its ownership in the San Dieguito de Arriba (SDA) plant in Nayarit from 30% to 50% by issuing 4,125,758 shares at a price of $0.066 to Magellan. The company also informed that has received interest from third parties desiring to enter into JV in the SDA plant and near-surface high grade mineralization near the plant.

ON SOCIAL RESPONSIBILITY

  • No relevant news.

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

On the picture above, a fault plane from an intermediate-sulphidation epithermal Au-Ag-Pb-Zn vein system in a project in Zacatecas, Mexico.  Photo by Miguel A Heredia.

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

Cockade texture

By Miguel A Heredia

During the 42nd week of the year (October 17th to October 23th, 2022), at least 15 press releases were announced by companies working in Mexico, and 4 news published by the media with six communicating production and financial issues, four reporting resources and developments of their properties, four commenting on Mexican issues, two announcing financing issues, one discussing social issues, one discussing deals and corporate issues, and one informing on exploration results. ON MEXICO ISSUES, Hermosillo, the capital city of the Sonora State, hosted the 14th International Mining Congress in October 18-21, 2022 with the participation of over 5,000 people. The Mexican Mining Chamber (CAMIMEX) warned that thefts of output and goods like explosives in the mining industry continue to increase despite the support provided by the Secretary of National Defense (SEDENA). According to data from the Ministry of Economy, the Mining Chamber of Mexico (Camimex) and experts, there is a mining collapse in Mexico since 822 mining projects were postponed, 180 foreign capital firms have left the country and there are 25 concessions stopped. GoGold and GR Silver reported the best drilling intercepts in Mexico on the third week of October, 2022. ON EXPLORATION, In Sinaloa, Prismo provided an update on its ongoing drill program conducted at its Palos Verdes project located in the historic Panuco-Copala mining district.  ON MINING, Avino, Santacruz, Golden Minerals, American Gold and Silver, and First Majestic reported Q3, 2022 production results from their Mexican mining operations, while Guanajuato Silver announced that it has recommenced mining at its Valenciana Mines Complex in Guanajuato, and provided a 6-month production estimate. ON FINANCING, Sierra Metals announced that it has commenced a process to evaluate and consider the company´s current financial and liquidity position, operational challenges and possible financing and restructuring alternatives that may be available to the company. Barksdale closed the final tranche of its previously announced non-brokered private placement for gross proceeds of $264K, and completed an extension of financial instruments (San Javier project in Sonora).  ON RESOURCES AND DEVELOPMENT, Avino announced that the installation and commissioning of the dry-stack tailings at its Avino mine in Durango has been completed. GoGold reported the acquisition of the 1,107 Ha Eagle concession covering the northern strike of the Main Deposit on the Los Ricos South property in Jalisco. Equinox released an updated feasibility study (FS) for its Los Filos mine expansion located in Guerrero State. GR Silver presented drilling results and announced the extension of the SE Area Silver Discovery at its Plomosas deposit in Sinaloa. ON DEALS AND CORPORATE ISSUES, Avinois conducting community agreements in the nearby towns adjacent to its la Preciosa property in Durango as it is committed to moving this project forward as part of the company´s 5-year growth strategy. ON SOCIAL RESPONSIBILITY, Industrias Peñoles and Fresnillo plc mining companies reiterated their commitment in saving and energy efficiency to continue implementing actions that contribute to the fight against global warming in order to build the mining of the 21st century.

ON MEXICO ISSUES

  • Hermosillo, the capital city of the Sonora State, hosted the 14th International Mining Congress during October 18-21, 2022, with the participation of over 5,000 people.
  • The Mexican Mining Chamber (CAMIMEX) warned that thefts of output and goods like explosives in the mining industry continue to increase despite the support provided by the Secretary of National Defense (SEDENA). The General Director of CAMIMEX, Karen Flores, said that thefts remain a recurrent issue in the sector and highlighted that these crimes are probably perpetrated by organized crime.
  • According to data from the Ministry of Economy, the Mining Chamber of Mexico (Camimex) and experts, there is a mining collapse in Mexico since 822 mining projects were postponed, 180 foreign capital firms have left the country and there are 25 concessions stopped. If the policy were to change, 30% more jobs would be created and the contribution to Mexico’s GDP would increase by 0.5%, according to estimates. Mining and metallurgical activity exceeded tourism by 19% in foreign exchange generation. The president of the Association of Mining Engineers, Metallurgists and Geologists of Mexico (AIMMGM), indicated that the uncertainty generated by this administration in the sector has caused a slowdown, which has left investments far from the more than USD $8 billion that were reached in previous years. GoGold Resources Inc., and GR Silver Mining Ltd., reported the best drilling intercepts in Mexico on the third week of October, 2022. Details are shown in the table below:

ON EXPLORATION

  • Prismo Metals Inc., provided an update on its ongoing drill program conducted at its Palos Verdes project located in the historic Panuco-Copala mining district in the state of Sinaloa. A total of 1,203m in 4 holes have been drilled to date out of a planned minimum of 2,000m. Drilling has intersected wide structural zones at depth where the Palos Verdes vein is branching into several strands measuring from about 0.5m to 9m in width in andesitic rocks. Core sampling is being completed on the entire structural zone including wall rock with veinlets. Assay results are expected to arrive in early November, 2022.

ON MINING

  • Avino Silver & Gold Mines Ltd., reported Q3, 2022 production results from its Avino mine in Durango. The company milled 162.1K tonnes of 59 g/t Ag, 0.31 g/t Au, and 0.66% Cu with metallurgical recoveries of 92%, 74%, and 89% respectively to produce 285.4K Oz Ag, 1.2K Oz Au and 2.1M Lb Cu (778K Oz AgEq).
  • Santacruz Silver Mining Ltd., announced Q3, 2022 production results from its Zimapan mine in Hidalgo. It milled 215,765 tonnes of 79 g/t Ag, 2% Zn, 0.7% Pb, and 0.39% Cu to produce 368.6K Oz Ag, 6.8M Lb Zn, 2.6M Lb Pb, and 1.4M Lb Cu (988.6K Oz AgEq).
  • Guanajuato Silver Company Ltd., has recommenced mining at its Valenciana Mines Complex (VMC) in Guanajuato. Cut & fill mining of high-grade epithermal veins at Valenciana is currently focused on the Los Pozos mine area where several mineralized blocks had been previously defined. Mineralized material from Valenciana is currently being transported to El Cubo for processing. The company expects to mine 5,000 tonnes per month at Valenciana throughout the remainder of 2022. “The Cata processing facility is centrally located within the Valenciana Mines Complex and has a production capacity of 36,000 tonnes per month. In November 2021 Cata was placed on care & maintenance by its previous owner. Guanajuato Silver had initially anticipated restarting the Cata mill in 2023, but with the rapid recommencement of mining at San Ignacio and the VMC, the company now expects to restart mineral processing at Cata before the end of 2022. The company also provided a 6-month production estimate. Guanajuato Silver expects to mine 125K-140K tonnes in Q4, 2022 to produce over 760K-985K and over 140K-160K tonnes in Q1, 2023 to produce over 910K-1.15M Oz AgEq.
  • Golden Minerals Company announced Q3, 2022 production and financial results from its Rodeo mine in Durango. The company mined 192,545 tonnes and reported that 23,618 tonnes were placed in stockpiles awaiting processing and 121,202 tonnes were placed in low grade stockpiles. Golden processed  47,947 tonnes of 2.6 g/t Au and 10 g/t Ag with metallurgical recoveries of 74.6% and 77.6% respectively., to produce 2,972 payable Oz Au in Dore and 11,907 payable Oz Ag in Dore (3,103 payable Oz AuEq in Dore). The company sold 3,108 Oz Au and 11,609 Oz Ag (3,145 Oz AuEq) at an average realized price before refining and selling costs of USD $1,703.10 per Oz Au and USD $18.72 per Oz Ag.
  • Americas Gold and Silver Corporation reported Q3, 2022 production results from its Cosalá operations in Sinaloa. It produced 186K Oz Ag, 3.8M Lb Pb, and 9.4M Lb Zn and announced that silver production from the Cosalá operations for the full year 2022 is expected to be at the lower end of the projected range of 0.7-0.9M Oz Ag, while zinc and lead production are expected to be towards the upper end of the projected ranges of 36 to 40M Lb Zn and 13 to 15M Lb Pb.
  • First Majestic Silver Corp., reported Q3, 2022 production results from their Mexican Mining operations (San Dimas in Durango, Santa Elena in Sonora, and La Encantada in Coahuila). Figures by mine are shown in the table below:

ON FINANCING

  • Sierra Metals Inc., announced that it has commenced a process to evaluate and consider the company´s current financial and liquidity position, operational challenges and possible financing and restructuring alternatives that may be available to the company. “The company faces liquidity challenges as a result of the recent previously announced suspension of operations at the Yauricocha Mine in Peru, and operating losses and negative cash flows that have accumulated, primarily from the Bolivar and Cusi operations in Mexico”. 
  • Barksdale Resources Corp., closed the final tranche of its previously announced non-brokered private placement with Teck Resources Limited for gross proceeds of $264K. The net proceeds will be used for general corporate and working capital purposes. Barksdale also completed an extension of the maturity date of the secured convertible debentures administered by Delbrook Capital Advisors Inc. by one year until December31, 2023. The debentures have a remaining principal amount of $1.5M and all other terms of the debentures remain unchanged except for the conversion price, which has increased to $0.55 per share from $0.45 per share (San Javier project in Sonora).

ON RESOURCES AND DEVELOPMENT

  • Avino Silver & Gold Mines Ltd., announced that the installation and commissioning of the dry-stack tailings at its Avino mine in Durango has been completed. The company chose dry-stack tailings for its environmental, safety and economic advantages, as well as because it reduces the need to extract water from local sources by recycling the water removed from tailings.
  • GoGold Resources Inc., reported the acquisition of the 1,107 Ha Eagle concession covering the northern strike of the Main Deposit on the Los Ricos South property in Jalisco by USD $2.1M to be paid over 4 years. As a result of this acquisition, all of the concessions in Los Ricos South are now contiguous. “This offers the potential for an additional bulk tonnage target in Los Ricos South, with continuity from the Main Area and Eagle”.
  • Equinox Gold Corp., released an updated feasibility study (FS) for its Los Filos mine expansion located in Guerrero State. Highlights of the FS include an after-tax NVP at  5% discount rate of USD $625M at base case of USD $1,675 per Oz Au; after-tax IRR of 26% at USD $1,675 per Oz Au; 5.4M Oz Au of Proven + Probable Mineral Reserves with grades of 0.65 g/t Au for open pit ore material and 3.94 g/t Au for underground ore material (average grade of 0.86 g/t Au); 7.9M Oz Au of Measured and Indicated Resources (exclusive of Reserves) with grades of 0.71 g/t Au for open pit ore material and 3.65 g/t Au for underground ore material (average grade of 0.75 g/t Au); 3.97M Oz life-of-mine (LOM) Au production, with  360K Oz peak average annual gold production (2025-2030), 280K Oz average annual gold production LOM (2023-2036), 1.22M Oz Au produced from the heap leach with average recovery of 55%, 2.75M Oz Au produced from the CIL plant with average recovery of 88%; 11.83M Oz LOM silver production; USD $993M after-tax LOM cumulative net cash flow; USD $981/ Oz average LOM cash cost; USD $1,081/Oz average LOM AISC; USD $318M initial capital cost to build the CIL plant and associated infrastructure; and 14.5-year mine life with extension potential from Mineral Resources conversion and exploitation success.
  • GR Silver Mining Ltd., presented drilling results and announced the extension of the SE Area Silver Discovery at its Plomosas deposit in Sinaloa. Drilling highlights include hole SMS22-16 which identified a wide hydrothermal breccia and stockwork system with multiple high grade Ag intervals such as 112 g/t Ag, 0.06 g/t Au, and 0.1% Zn over 123.1m, including 289 g/t Ag, 0.05 g/t Au, and 0.1% Zn over 13.1m, including 4,680 g/t Ag, 0.57 g/t Au, 0.1% Pb, and 0.1% Zn over 0.4m, and 250 g/t Ag, 0.1 g/t Au, 0.1% Pb, and 0.3% Zn over 27.3m, including 1,351 g/t Ag, 0.3 g/t Au, 0.1% Pb, and 0.2% Zn over 0.3m, and 635 g/t Ag, 0.08 g/t Au, 0.2% Pb, and 0.3% Zn over 6.4m, including 2,203 g/t Ag, 0.17 g/t Au, 0.8% Pb, and 1.4% Zn over 0.5m, and 102 g/t Ag and 2.6 g/t Au over 1.5m; and hole SMS22-14 with 23 g/t Au and 0.06 g/t Au over 10.5m, and 118 g/t Ag, 0.02 g/t Au, and 0.1% Zn over 3.5m, including 1,790 g/t Ag, 0.03 g/t Au, 0.7% Pb, and 2.9% Zn over 0.2m, and 22 g/t Ag, 0.08 g/t Au over 10.9m. The drilling program continues at the SE Area to define the geometry and lateral extents of the mineralization. “The occurrence of Ag anomalous zones on surface along the 1.5km target contact, further SE from the SE Area, provides new targets for the company to continue drilling, aimed at expanding the footprint of mineralization and potentially for incorporation into the planned resource estimation update in Q1, 2023”.

ON DEALS AND CORPORATE ISSUES

  • Avino Silver & Gold Mines Ltd is conducting community agreements in the nearby towns adjacent to its la Preciosa property in Durango as it is committed to moving this project forward as part of the company´s 5-year growth strategy.

ON SOCIAL RESPONSIBILITY

  • Industrias Peñoles S.A.B. de C.V. and Fresnillo plc mining companies reiterated their commitment in saving and energy efficiency to continue implementing actions that contribute to the fight against global warming in order to build the mining of the 21st century. In accordance with their sustainable development policies, both companies have programs to reduce greenhouse gas emissions, such as those from transportation, for which they implemented a strategy to save energy and use clean sources. Peñoles and Fresnillo plc are committed to caring for the environment and seek to achieve, in the near future, the objective of zero significant environmental impacts.

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, cockade texture from a low-sulphidation epithermal Au-Ag vein system in a project in Sinaloa, Mexico.  Photo by Miguel A Heredia.

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

By Jorge Cirett

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

ON MEXICO ISSUES

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

ON EXPLORATION

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

ON MINING

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

ON FINANCING

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

ON RESOURCES AND DEVELOPMENT

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

ON DEALS AND CORPORATE ISSUES

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

ON SOCIAL RESPONSIBILITY

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

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

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

By Jorge Cirett

During the 25th week of the year (June 20th to June 26th, 2022), at least 24 press releases were announced by companies working in Mexico. To note, four companies posted exploration advances on their properties, there were no relevant news in the mining section, four companies reported on the opening or closing f financing rounds for a total of US$6.4 M and C$5 M, five companies posted on work at its advanced properties. One company announced a LOI on a property, another is on a legal fight for its mining concessions and one more is suing the Mexican government on the cancellation of a project.  ON MEXICO ISSUES, Congress released the reform on nationalization of lithium extraction. ON EXPLORATION, in Sonora, Silver Spruce collared the first hole at Diamante; Tocvan Ventures recommenced drilling at Pilar. In Zacatecas, Minera Alamos updated on regional exploration at Melchor Ocampo. In Veracruz, Azucar Minerals commenced a second hole on a new target at El Cobre. ON MINING, no relevant news. ON FINANCING, Sonoro Gold increased its financing round to $2.4 M; Fabled Silver it to raise up to $1 M; Heliostar Metals is carrying a financing round to raise $3 M; Reyna Silver closed its non-brokered placement raising C$5 M.  ON RESOURCES AND DEVELOPMENT, Alamos Gold poured first bullion from La Yaqui Grande, in the Mulatos district, Sonora. Minera Alamos obtained surface access to Cerro de Oro in Zacatecas. Vizsla Resources reported drill results from Panuco, in Sinaloa. Guanajuato Silver reported high-grade tailings drilling results at El Cubo, in Guanajuato. GR Silver released drill results from Plomosas, in Sinaloa. Orex Minerals resumed drilling at Sandra, in Durango, within a JV with Pan American Silver. Oroco Resources released drilling results from the north part of the Santo Tomás project in Sinaloa. ON DEALS AND CORPORATE ISSUES, no relevant news.  ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUES

  • The Economy Secretariat (Secretaría de Economía) is the government entity that is to run the Lithium State company.  The reform sealed by Congress nationalized the extraction of the metal, and mandates the government has 90 days to create the organization.

ON EXPLORATION

  • Colibri Resources Corp. announced that its partner in the Diamante project in Sonora, Silver Spruce Resources Inc. has collared the first holes of a 2,000 m reverse circulation drilling program, starting on the Pillado zone and to continue at La Prieta.
  • Tocvan Ventures Corp. recommenced drilling at its Pilar project in Sonora. Drilling will focus on priority exploration targets as well as parallel trends and extensions.
  • Azucar Minerals Ltd. has commenced a second hole at the lithocap target at El Cobre, Veracruz. “the first hole passed through typical clay dominant lithocap alteration into phyllic alteration which transitioned to propylitic and at depth intense biotitic potassic alteration and is interpreted to have intersected a peripheral part of a porphyry system beneath the lithocap”. The target has been shown as likely to contain a medium to large sized porphyry systems based on mineral vectoring studies with chlorite and epidote.
  • Minera Alamos Inc. updated on regional exploration activities in the Melchor Ocampo area of Zacatecas. The company owns 6,405 ha of mining concessions in the area around its Cerro de Oro project, in development. A new mineralized trend has been identified 4.5 km southwest of the Cerro de Oro area, with 22 out of 40 samples running over 0.5 gpt Au “in a sedimentary sequence of interbedded siltstone, sandstones and limestones that have been intruded by granitic dikes and sills”. An internal historic report by Echo Bay calculated 2.8 M tonnes @ 0.75 gpt Au, and also pointed to the possibility of large tonnage Ag-Pb-Zn mineralization.

ON MINING

  • No Relevant News.

ON FINANCING

  • Sonoro Gold Corp. is increasing its previously announced non-brokered private placement to raise gross proceeds of up to $2.4 M. (Cerro Caliche, Sonora).
  • Fabled Silver Gold Corp. announced a non-brokered private placement for aggregate gross proceeds of up to $1 M (Santa Maria, Chihuahua).
  • Heliostar Metals Ltd. is carrying a non-brokered private placement for gross proceeds of up to $3 M (Cumaro, Oso Negro and La Lola, in Sonora).
  • Reyna Silver Corp. closed its previously announced “best efforts” private placement, for gross proceeds of C$5 M. The offering was upsized from its originally aimed C$3 M (Guigui, Chihuahua).  

ON RESOURCES AND DEVELOPMENT

  • Alamos Gold Inc. announced initial gold production from the La Yaqui Grande mine in Sonora. Construction was completed ahead of schedule this month. A total of 991 Oz was poured, with production expected to reach 3,000 Oz Au in June. This large-scale construction project will extend the life of the Mulatos Complex for at least five years. “La Yaqui Grande was completed ahead of schedule generating more than 1,000 jobs during the construction phase and will continue to sustain 450 direct jobs”.
  • Minera Alamos Inc. presented executed surface rights agreements for its Cerro de Oro project in Zacatecas. These permits, which cover 816 ha in the Melchor Ocampo Municipality and 160 ha in the Ejido San Pedro de Ocampo, with allow the company to pursue the permit application for the project. Additional activities for 2022 include metallurgical test work, in-fill and local resource expansion drilling, ongoing regional exploration, equipment procurement, mine contractor discussions and project financing discussions.
  • Vizsla Resources Corp. reported results from 24 drill holes targeting the Tajitos-Copala resource area at its Panuco project in Sinaloa. The results are from the Copala structure, extending it to 600 meters along strike and 400 m downdip. Highlighted true width results comprise 20.45 m @ 780 gpt Ag, 4.23 gpt Au; 14.50 m @ 667 gpt Ag, 3.89 gpt Au; 9.35 m @ 1,010 gpt Ag, 5.44 gpt Au (including 1.30 m @ 3,548 gpt Ag, 17.78 gpt Au); 4.40 m @ 802 gpt Ag, 6.89 gpt Au; 3.40 m @ 1,642 gpt Ag, 6.67 gpt Au. “The Copala Vein is a shallow dipping structure …. on the hangingwall side of the Tajitos structure. Copala is marked by high precious metals grades …. hosted within a broader envelope of vein-breccia up to 82 metres thick…”.
  • Guanajuato Silver Company Ltd. reported the discovery of high-grade material in an historical tailings area of El Cubo Mine Complex in Guanajuato. The Mastranto tailings facility has material from El Cubo Santa Cecilia area, mined between 1986 and 2003, covering an area of 4.35 ha. with approximately 1.5 m of tailings material. Some of the highlighted hole length results comprise 1.3 m @ 4.14 gpt Au, 328 gpt Ag; 1.6 m @ 3.07 gpt Au, 169 gpt Ag; 0.8 m @ 3.42 gpt Au, 446 gpt Ag; 1.1 m @ 3.18 gpt Au, 405 gpt Ag; 1.2 m @ 3.17 gpt Au, 427 gpt Ag; 1.0 m @ 3.54 gpt Au, 405 gpt Ag; 1.2 m @ 3.65 gpt Au, 435 gpt Ag; 1.0 m @ 3.42 gpt Au, 437 gpt Ag; 1.2 m @ 3.03 gpt Au, 419 gpt Ag; 1.1 m @ 3.46 gpt Au, 40 gpt Ag; 1.1 m @ 3.32 gpt Au, 316 gpt Ag; 1.0 m @ 4.02 gpt Au, 220 gpt Ag. “the Company plans to extract the gold and silver content from Mastrantos IV using a gravity extraction circuit”.
  • GR Silver Mining Ltd. released results from drilling at the San Juan and Plomosas mine areas of its Plomosas project in Sinaloa. Highlighted true width results comprise 4.3 m @ 4.52 gpt Au, 56 gpt Ag (including 1.1 m @ 10.17 gpt Au, 340 gpt Ag); 0.5 m @ 30.09 gpt Au, 76 gpt Ag; 0.9 m @ 0.38 gpt Au, 459 gpt Ag. Channel sampling at Las Teresas returned 3.4 m @ 1.21 gpt Au, 67 gpt Ag (including 0.4 m @ 9.44 gpt Au, 394 gpt Ag).
  • Orex Minerals Inc. resumed diamond drilling on the Sandra project in Durango. This is a joint venture between Pan American Silver Corp. (60%) and Orex (40%) that aims to drill 2,500 to 3,000 meters in this new Phase-I program. “The Project covers almost 70 square kilometres of contiguous mineral concessions and includes multiple mineralized epithermal quartz veins, disseminated horizons and breccia structures”. The Sandra project has an inferred resource of 9.8 M tonnes @ 106 gpt hosting 33.3 M Oz Ag in the Boleras deposit.
  • Oroco Resources Corp. released results from the Brasiles area of the Santo Tomas project in Sinaloa. Core length highlighted results comprise 166 m @ 0.36 % Cu (including 59.0 m @ 0.46% Cu and 17.4 m @ 0.44% Cu); 33.5 m @ 0.14% Cu in one hole; 24.0 m @ 0.33% Cu; 14.0 m @ 0.17% Cu; 16.0 m @ 0.14% Cu in a second hole; 213.5 m @ 0.28% Cu (including 37.5 m @ 0.50% Cu) in a third hole. “Brasiles West Zone has strong geological similarities to the North Zone, if somewhat attenuated. Like the North Zone, monzonite dikes cutting the Cretaceous limestone (marble) are accompanied by skarn development and minor base metal mineralization”.

ON DEALS AND CORPORATE ISSUES

  • QNB Metals Inc. announced the execution of a binding letter of intent (LOI) with Analog Gold Inc. on the proposed acquisition of the Tres Oro property in Sinaloa. “The LOI provides for a business combination of QNB Metals and Analog, which would be implemented by way of a “Reverse Takeover” of QNB Metals by Analog”. The deal envisages consolidation of QNB Metals shares on a 2 to 1 basis, completion of a financing round, the payment of $38.3 M through the issuance of shares. The Tres Oros property is an active pilot mine exploiting a polymetallic structure open on strike and at depth, with access to a 600 tpd flotation plant.
  • Defiance Silver Corp. has “become aware that certain mineral concessions concerning its Tepal Project have been illegally and fraudulently transferred to a third-party individual without the Company’s knowledge or consent. These concessions are the property of Defiance and have consistently been kept in good standing by the Company, with all obligations and filings under applicable laws being systematically completed”. Defiance is pursuing all legal avenues to restore its rightful claim to the concessions (Tepal. Michoacan).
  • Odyssey Marine Exploration Inc. has gathered US$15 M to pursue legal actions against environmental authorities in Mexico, under the arbitration provided by NAFTA. The complaint asks for US$2 billion in damages on the cancellation of the offshore phosphate mining project.

ON SOCIAL RESPONSIBILITY

  • No Relevant News.

On the image below: Locally foliated intrusive rock, with minor quartz and specularite veining in the Sonora Desert. Picture by Jorge Cirett.

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

By Jorge Cirett

During the 21st week of the year (May 23rd to May 29th, 2022), at least 25 press releases were announced by companies working in Mexico. To note, six companies posted exploration advances on their properties, one released first quarter 2022 reports, one announced the commissioning commencement on its project, one updated on a merger, one on the significant ownership by one investor, one on the compliance to issue by-weekly reports until its management cease trade order is lifted, three released drilling results from their advanced projects and one commissioned a company to prepare a resource estimate for its property.  ON MEXICO ISSUES, SEMARNAT, the Mexican environmental agency, voiced its support for anti-mining organizations in Morelos. A miner’s Union has taken legal steps to get back to previous profit-sharing schemes by mining companies. The president of Mexico expressed the likelihood of its government going to court to stop a company from mining limestone in Quintana Roo. ON EXPLORATION, in Sonora, Benjamin Hill Mining released results from drilling at its Sonora Gold property; Ranchero Gold updated on exploration at Santa Daniela; Silver Spruce Resources is preparing ground for drilling at Diamante; Tocavan Ventures released drill results from Pilar. In Nayarit, Sierra Madre Gold and Silver released results from drilling at La Tigra. In Veracruz, Azucar Minerals completed the first hole near the center of a large target at El Cobre. ON MINING, SilverCrest Metals announced the completion of construction of the processing plant at Las Chispas, in Sonora. Magna Gold presented its Q1 2022 operating and financial report. ON FINANCING, Sailfish Royalty received a lead order commitment in its path to create a silver exploration company starting with the Gavilanes project in Durango.  Eric Sprott owns 26.2% of outstanding shares of Discovery Silver. Gatos Silver is providing a by-weekly default status report.  ON RESOURCES AND DEVELOPMENT, Avino Silver & Gold Mines released drill results from the Oxide Tailings project at Avino, Durango. GR Silver released results from underground drilling at Plomosas, in Sinaloa. Sonoro Gold reported results from drilling at Cerro Caliche, in Sonora. Barksdale Resources engaged a company for the elaboration of the resource estimate at San Javier, in Sonora. ON DEALS AND CORPORATE ISSUES, Sierra Madre Gold and Silver signed an agreement with First Majestic to acquire La Guitarra, in Estado de Mexico. Bear Creek Mining has been placed on the default list by the British Columbia Securities Commission, on concerns regarding the credentials of consultants that signed a technical report on the Mercedes mine, in Sonora. Discovery Silver updated on activities at Cordero, in Chihuahua.  ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUES

  • SEMARNAT, the Mexican environmental agency, pointed that it backs those against mining projects in Morelos. This statement was done regarding Alamos Gold’s Esperanza project near Temixco, in the process of acquisition by Zacatecas Silver Corp.. The agency stressed that the Mexican government maintains its commitment to not authorize any new open pit development in the country, based on ideological ideas (No mention was done whatsoever about the project complying or not with the law).
  • The Union “Sindicato Nacional Minero Metalúrgico FRENTE” informed on legal procedures taken by the organization to fight for the 10% of profits that previously were distributed among the workforce of mining companies in Mexico, same that were recently capped at three months of salary per worker.
  • The president of Mexico, Andrés M. López Obrador, stated that Mexico will take Vulcan Materials, a company mining limestone in Quintana Roo, to court if necessary. The company has stated in the past that it has all the needed permits for its operations.

ON EXPLORATION

  • Benjamin Hill Mining Corp. released results from diamond drilling at its Sonora Gold project in Sonora. A total of 34 holes were completed covering 5,800 m on seven targets in the 6,400 hectares property. Assays have been received for the first 20 holes. Highlighted intervals from the Sonora Copper area comprise 28.2 m @ 0.42% Cu (interval that includes 16 m @ 0.3 gpt Au; 3.5 m @ 26 gpt Ag; 1.44 m @ 2.99% Cu, 0.664 gpt Au, 103 gpt Ag) and 9.21 m @ 0.92% Cu (including 5.36 m @ 1.7% Cu, 1.95 gpt Au, 44 gpt Ag) in one hole; and 20.55 m @ 0.55% Cu (including 2 m @ 1.05% Cu, 0.379 gpt Au, 18 gpt Ag; 3.96 m @ 1.12%) in a second hole. Highlighted intervals from other areas comprise 1.2 m @ 0.43% Cu, 1.52 gpt Au; 0.90 m @ 0.14% Cu, 1.73 gpt Au; 0.60 m @ >10% Cu, 2.11 gpt Au, 52 gpt Ag).
  • Sierra Madre Gold and Silver Ltd. announced results from the three first holes of its drilling program at La Tigra project, Nayarit. Highlighted core length intervals (interpreted as 90% of the core interval) comprise 9.0 m @ 0.46 gpt Au, 9 gpt Ag; 6.60 m @ 0.49 gpt Au, 6 gpt Ag; 5.10 m @ 2.21 gpt Au, 24 gpt Ag; 32.0 m @ 1.00 gpt Au, 4 gpt Ag (including 4.0 m @ 3.03 gpt Au and 4.45 m @ 2.72 gpt Au, 7 gpt Ag). An application was filed for a new 1,653 ha claim to the west of La Tigra, named Sabra.
  • Ranchero Gold Corp. provided an update on exploration at its Santa Daniela concessions in Sonora. Machine-learning technology has been applied in the 2,220 hectares land package to identify 47 exploration targets, of which nine are high priority. Follow-up field visits are ongoing to Rincon, San Francisco and Yaqui Sur.
  • Silver Spruce Resources Inc. is preparing access trails and pads for its incoming 2,000 m reverse circulation drilling campaign at its 1,057 hectares Diamante project in Sonora. The drilling company it to mobilize to site next week.
  • Azucar Minerals Ltd. announced the completion of the first hole (1,280 m of depth) in a large lithocap target at El Cobre, in Veracurz. This area has been targeted for drilling based on a mineral vectoring study utilizing chlorite and epidote that indicates a fertile medium to large sized porphyry system, a coinciding deep IP geophysical anomaly, surface pyrophyllite, spectral mineral mapping and high crystallinity illite over the entire target. Drill hole results are pending. “The closest hole to this deep core IP anomaly, which did not test the anomaly, intersected intense quartz pyrite sericite (QSP) phyllic alteration which provides further support to this new target representing a possible porphyry centre”.
  • Tocvan Ventures Corp. released diamond drill results from its Pilar property in Sonora. An infill hole in the Main zone intercepted a core-length interval of 108.6 m @ 0.8 gpt Au, 3 gpt Ag (including 31.9 m @ 2.4 gpt Au, 2 gpt Ag and 9.4 m @ 7.6 gpt Au, 5 gpt Ag). As part of the Phase III program, nine drill holes totaling 1,562 m have been completed.

ON MINING

  • SilverCrest Metals Inc. announced that Ausenco Engineering Canada Inc. has completed the construction of the processing plant at Las Chispas in Sonora. The processing plant commissioning is now underway, and expected to reach commercial production in Q4, 2022.
  • Magna Gold Corp. released operating and financial results for the first quarter of 2022. At San Francisco, in Sonora, 7.3 M tonnes were mined with a strip ratio of 6.7:1, processing 1.4  M tonnes to produce 11,874 Oz Au at cash cost $1,675 per Oz Au and AISC at $2,467 per Oz Au. The San Francisco deposit has measured and indicated resources of 99.7 M tonnes @ 0.446 gpt Au, containing 1,430 K OZ Au and inferred resources of 11.4 M tonnes @ 0.446 gpt Au, containing 171 K Oz Au.

ON FINANCING

  • Sailfish Royalty Corp. has received a lead order commitment from Barnwell Investments LLC. in connection to the private placement contemplated as part of a combination transaction with Swordfish Silver. The proposed transaction includes a private placement of Swordfish shares for US$5 M. The goal of the proposed transaction is to create a silver focused exploration and development company, resulting in the transfer of Sailfish’s Gavilanes property in Durango.
  • Ontario Ltd., a company Eric Sprott owns, announced the exercise of warrants on Discovery Silver Corp. for an aggregate consideration of $7 M. As a result of the warrant exercise Mr. Sprott owns 26.2% of the outstanding Shares on a non-diluted basis and approximately 27.3% on a partially diluted basis.
  • Gatos Silver Inc. is providing a by-weekly default status report in accordance with National Policy 12-203 – Management Cease Trade Orders. “The Company believes that it will be able to file its annual report on Form 10-K for the year ended December 31, 2021, and its quarterly report on Form 10-Q for the quarter ended March 31, 2022 in the second half of 2022. The Company is also evaluating the material weaknesses in its internal controls over financial reporting related to the mineral reserve reporting errors”.

ON RESOURCES AND DEVELOPMENT

  • Avino Silver & Gold Mines Ltd. released results from 17 short holes drilled on its Oxide Tailings project at Avino, in Durango. “The 2022 drill program included 17 drill holes for a total of 209 metres of drilling”. The average of 90 m drilled on the sulphide zone of the tailings returned 0.34 gpt Au, 30 gpt Ag, whereas those from the oxide zone averaged 0.49 gpt Au, 41 gpt Ag on a total of 90 m.
  • GR Silver Mining Ltd. announced results from underground infill drilling at the Plomosas Project in Sinaloa. Highlighted apparent width intervals comprise 2.9 m @ 190 gpt Ag, 0.1% Pb, 0.1% Zn; 14.0 m @ 146 gpt Ag; 6.5 m @ 1,458 gpt Ag, 0.2% Pb, 0.2% Zn.
  • Sonoro Gold Corp. reported results from 10 holes completed at its Cerro Caliche project in Sonora. The highlighted core length results from the El Colorado and Buena Suerte zones comprise 21.34 m @ 0.557 gpt Au (including 3.04 m @ 1.52 gpt Au); 1.52 m @ 2.19 gpt Au; 7.62 m @ 0.72 gpt Au; 10.67 m @ 1.183 gpt Au; 4.57 m @ 1.09 gpt Au; 1.52 m @ 9.57 gpt Au; 28.95 m @ 1.021 gpt Au (including 3.05 m @ 2.706 gpt Au). Results from further seven drill holes at Las Abejas are pending.
  • Barksdale Resources Corp. engaged Independent Mining Consultants Inc. (IMC) to prepare a resource estimate and NI 43-101 Technical Report for the Cerro Verde copper zone on the San Javier project in Sonora. Approximately 30,000 m of drilling data will be utilized in the process to create the report. The resource estimate is expected to be delivered to Barksdale within the next 30 days.

ON DEALS AND CORPORATE ISSUES

  • Sierra Madre Gold and Silver Ltd. signed an arm’s length definitive agreement with First Majestic Silver Corp. to acquire the 39,714 hectare La Guitarra property in Estado de Mexico. La Guitarra is a past-producing underground mine with an on-site process facility that operated until 2018. Historical measured and indicated resources in the property amount to 7.45 M Oz AgEq and inferred resources to 10 M Oz AgEq. Sierra Madre will issue to First Majestic 69.06 M of its common shares, for an aggregate value of $35 M. Upon completion of the transaction First Majestic will become the largest shareholder of Sierra Madre.
  • Bear Creek Mining Corp. has been placed on the default list by the British Columbia Securities Commission. This as a result of the BCSC’s concerns regarding the credentials of certain independent third-party consultants to act as qualified persons under National Instrument 43-101 in respect of certain chapters of the Aprill 22 technical report on the Mercede mine, in Sonora. “Bear Creek estimates that the Amended Mercedes Report will be filed within approximately 30 days”.
  • Discovery Silver Corp.released its financial results for the first quarter 2022 and an update on activities. The Pre-Feasibility Study (PFS) work for the Cordero project in Chihuahua is to be delivered on the fourth quarter 2022, the metallurgical test work on sulfides is 60% complete, the reserve definition drilling is now complete, and the first of three open pit geotechnical drill holes is underway. More than 30,000 m of drilling are planned this year on resource expansion targets and the first ever drilling of five targets within 10 km of Cordero. Cash and cash equivalents by the end of the period was at $61.2 M

ON SOCIAL RESPONSIBILITY

  • No Relevant News.

On the image below: Sampling of quartz-barite vein in the Sonora Desert. Picture by Jorge Cirett.

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

By Jorge Cirett

During the 17th week of the year (April 25th to May 1st, 2022), at least 24 press releases were announced by companies working in Mexico. To note, five companies posted exploration advances on their properties, four released first quarter 2022 reports, one reported a temporary suspension of mining, one on a financing round, another one on an updated credit facility, eight reported either drill results or updated on work in their advanced properties. ON MEXICO ISSUES, according to Miner Deck, one company working in Mexico had the best gold intercept of the week, and five companies in Mexico participated in the best eight silver intercepts. The SGM stated that Ixtlilco el Grande in Tepalcingo, Morelos, is one of several sites favorable for lithium mineralization. Several institutions pointed out that Mexico can be involved in international litigations if proceeds to nullify mining concessions under the reform to the mining law recently approved. ON EXPLORATION, in Sonora, Tocvan Ventures provided drill results on the Pilar project; Silver Spruce received results from Diamante. In Durango, Commander Resources informed on drilling by Southern Empire Resources at Pedro. In Chihuahua, Mammoth Resources provide drilling results from Tenoriba. ON MINING, Guanajuato Silver reported 2021 production, Mag Silver, Alamos Gold and Agnico Eagle reported Q1 2022 production results. Gatos Silver temporarily suspended mining operations at Cerro Los Gatos in Chihuahua. ON FINANCING, Sonoro Gold is to raise up to C$3 M. Orla Mining informed on a project finance facility for US$150 M.  ON RESOURCES AND DEVELOPMENT, Barksdale Resources released the last results from its drilling campaign at San Javier, in Sonora. Endeavour Silver reported drilling results from its Parral project in Chihuahua. Altaley Mining filed an updated technical report on Tahuehueto, Durango. Sierra Madre Gold and Silver announced results from drilling at the Tepic project, in Nayarit. Chesapeake Gold released results from metallurgical infill holes at Metates, in Durango. SilverCrest Metals updated on construction work at Las Chispas, in Sonora. Discovery Silver updated on work at Cordero, in Chihuahua, GR Silver Mining released high-grade results from drilling at Plomosas, in Sinaloa. ON DEALS AND CORPORATE ISSUES, no relevant news.  ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUES

  • According to Miner Deck, one company working in Mexico, Chesapeake Gold, drilled the best gold drilling intercept of the week, with 405 m @ 0.90 gpt Au at Metates, in Durango.
  • According to Miner Deck, five of the top eight silver intervals were drilled by companies working in Mexico. Gr Silver Mining was first with 24.2 m @ 1,094 gpt Ag at Plomosas, in Sinaloa. Chesapeake Gold was third with 357 m @ 31.6 gpt Ag, at Metates, in Durango. Radius Gold was fifth, with 11.8 m @ 450 gpt Ag at Amalia, in Chihuahua. Endeavour Silver was sixth, with 5.7 m @ 392 gpt Ag at Guanaceví, in Durango. Sierra Madre was eighth, with 3.05 m 625 gpt Ag at Tepic, in Nayarit.
  • The Servicio Geológico Mexicano (SGM), stated that Ixtlilco el Grande in Tepalcingo, Morelos, is one of several sites favorable for lithium mineralization.
  • The Cámara de Comercio Internacional argued that if the Mexican government nullifies mining concessions as results of the recently approved reform to the mining law, will be obligated to indemnify investors. This as a result of modifying the regulatory framework, as also pointed the Comisión de Comercio y Políticas de Inversión y el Comité de Arbitraje de Inversión de la International Chamber of Commerce.

ON EXPLORATION

  • Radius Gold Inc. reported drilling results from El Cuervo target at its Amalia project in Chihuahua. Highlighted core length intercepts comprise 14.60 m @ 117 gpt Ag, 0.92 gpt Au (including 0.9 m @ 1,185 gpt Ag, 6.93 gpt Au); 17.35 m @ 253 gpt Ag, 1.11 gpt Au (Including 7.60 m @ 414 gpt Ag, 2.10 gpt Au); 11.80 m @ 450 gpt Ag, 1.31 gpt Au (including 2.10 m @ 1,577 gpt Ag, 2.27 gpt Au). These holes were drilled from two platforms testing 350 m of strike and 300 m of depth.
  • Tocvan Ventures Corp. announced results from one more drill hole at its Pilar project in Sonora. Highlighted core length intervals comprise 108.6 m @ 0.8 gpt Au, 3 gpt Ag (including 31.9 m @ 2.4 gpt Au, 2 gpt Ag, which includes 9.4 m @ 7.6 gpt Au, 5 gpt Ag). The drill hole intersected a silicified andesite, including the 9.4 m high-grade breccia zone.
  • Silver Spruce Resources Inc. received high-grade surface sample results from its Diamante project in Sonora. The results are part of the phase 1 geological mapping program on the main drill target areas. Intense silica, sericite, clay and propylitic alteration was confirmed peripheral to veins and breccias in andesitic tuff, rhyolite and granodiorite. Highlighted surface sample results comprise 51.5 gpt Au, 11 gpt Ag; 7.57 gpt Au, 186 gpt Ag, 114 ppm Bi, 6.3% Pb; 3.31 gpt Au, 191 gpt Ag, 0.5% Pb; 2.99 gpt Au, 2,270 gpt Ag, 422 gpt Bi, 0.29% Cu, 4.4% Pb; 2.08 gpt Au, 533 gpt Ag, 0.19% Cu, 3.8% Pb, 7.5% Zn; 1.80 gpt Au, 199 gpt Ag, 2.8% Pb, 0.2% Zn; 1.141 gpt Au, 140 gpt Ag, 0.17% Cu, 2.6 % Pb, 3.6% Zn; 1.38 gpt Au, 1,980 gpt Ag, 3,290 ppm Bi, 11.1% Pb; 1.34 gpt Au, 100 gpt Ag, 100 ppm Bi, >1000 ppm Cd, 3.2% Cu, 5.7% Pb, 16.7% Zn; 0.94 gpt Au, 223 gpt Ag, 0.27% Cu, 4.0% Pb, 6.5% Zn; 0.72 gpt Au, 226 gpt Ag, 375 ppm Bi, 2.4% Pb; 0.27 gpt Au, 82 gpt Ag, 44 ppm Bi, >1,000 ppm Cd, 3.6% Pb, 22.9% Zn; 0.20 gpt Au, 1,310 gpt Ag, 0.37% Cu, 42.3% Pb, 8.2% Zn.
  • Commander Resources Ltd. informed on work by partner Southern Empire Resources at the Pedro project in Durango. Southern Empire completed six core holes for a total of 856 m. Highlighted core length results comprise 9.26 m @ 0.087 gpt Au; 5.28 m @ 0.151 gpt Au; 19.82 m @ 0.311 gpt Au; 5.26 m @ 0.115 gpt Au; 15.23 m @ 0.577 gpt Au; 5.88 m @ 0.098 gpt Au; 14.75 m @ 0.230 gpt Au. “The Au-As-Sb-Hg-Tl-Te geochemical suite associated with strong orpiment (As S ) and realgar (AsS) mineralization observed in the Pedro drill core is, in part, indicative of Carlin-style gold deposits”.
  • Mammoth Resources Corp. provided results from three additional diamond drill holes at Tenoriba, in Chihuahua. Highlighted core length intervals comprise 6.0 m @ 0.20 gpt Au, 3 gpt Ag; 15.0 m @ 0.34 gpt Au, 2 gpt Ag; 6.0 m @ 0.59 gpt Au, 3 gpt Ag in one hole on the Moreno zone; 46.5 m @ 0.45 gpt Au, 5 gpt Ag in another hole on the Carneritos zone and 37.5 m @ 0.98 gpt Au, 15 gpt Ag (including 18.0 m @ 1.13 gpt Au, 21 gpt Ag, 0.55% Cu) and 12.0 m @ 0.08 gpt Au, 0.45% Cu in one other hole on the Moreno zone. To date, results for 1,914 m have been released from 13 holes on the current drilling program of 27 holes with 3,240 m drilled. The program has been halted for lack of water for drilling.

ON MINING

  • Guanajuato Silver Company Ltd. reported selected financial and production results for 2021. Production at El Cubo mine in Guanajuato commenced in October 2021. A total of 89.1 K tonnes were mined from El Cubo and existing stockpiles from El Pinguico, with 77.5 K tonnes milled, recovering 82.6% Ag, 78.8% Au to produce 124,7 K Oz Ag, 1,440 Oz Au at cash cost $20.36 per Oz AgEq mined. By the end of the period the company had $8.23 M in cash and an additional $1.6 M in bullion.
  • MAG Silver Corp. reported first quarter 2022 production of underground development and stope material at Juanicipio (56% Fresnillo/44% Mag Silver), in Zacatecas. On a 100% basis, 145.5 K tonnes were processed @ 597 gpt Ag, producing 2.4 M Oz Ag, 5,837 Oz Au. MAG Silver attributable production is 1.06 M Oz Ag, 2,568 Oz Au; the associated Pb and Zn production is to be reported with MAG’s first quarter filings.
  • Gatos Silver Inc. suspended temporarily mine operations at Cerro Los Gatos in Chihuahua. “The Mexican Ministry of Defense (“SEDENA”), who regulates all explosives permits in Mexico, temporarily suspended CLG’s explosive and blasting permit on April 21, 2022, following a blasting incident during underground development activities where two blasts were detonated prematurely”. No personnel were injured and no significant damage to equipment occurred. The company expects the resumption of mining activities next week.  
  • Alamos Gold Inc. reported Q1 2022 financial results, including figures from its Mexican operations. At Mulatos in Sonora, 613.8 K tonnes of ore were mined, 1.97 M tonnes of waste moved, stacking 1.74 M tonnes @ 0.73 gpt Au, for 40,852 Oz Au stacked. During the period 22,500 Oz Au were produced at cash cost $1,570 per Oz Au, and an AISC of $1,782 per Oz Au. “Mulatos produced 22,500 ounces in the first quarter, lower than the prior year period though consistent with first half 2022 guidance of between 45,000 and 50,000 ounces. Initial production from La Yaqui Grande in the third quarter and higher grades from El Salto are expected drive production substantially higher in the second half of the year to between 85,000 and 95,000 ounces”.
  • Agnico Eagle Mines Ltd. released first quarter 2022 results, including figures from its Mexican operations. At Pinos Altos, in Chihuahua, 384 K tonnes were processed at a rate of 4,267 tonnes per day (tpd), averaging 2.14 gpt Au, to produce 25,170 Oz Au at cash cost $1,078 per Oz Au. At Creston Mascota, residual recovery from the heap leach pad continued, producing 1,006 Oz Au at cash cost $407 per Oz Au with residual leaching to continue throughout the second quarter of 2022. At La India, in Sonora, 1.56 M tonnes were processed at a rate of 17.4 K tpd, averaging 0.57 gpt Au, to produce 21,702 Oz Au at cash cost $820 per Oz Au.

ON FINANCING

  • Sonoro Gold Corp. is to undertake a non-brokered private placement offering to raise up to C$3 M (Cerro Caliche, Sonora).
  • Orla Mining Ltd. announced the refinancing of its US$125 M project finance facility with a new US$150 M secured credit facility which includes a US$100 M term facility and a US$50 M revolving facility through the Bank of Nova Scotia, Bank of Montreal, and Canadian Imperial Bank of Commerce (Camino Rojo, Zacatecas).

ON RESOURCES AND DEVELOPMENT

  • Barksdale Resources Corp. announced additional drill results from its 5,000 m phase I drilling program at the Cerro Verde zone of the San Javier project in Sonora. Highlighted core length intervals in three holes comprise 21 m @ 0.14% Cu, 0.47 gpt Au; 21 m @ 0.61% Cu, 0.28 gpt Au; 6 m @ 0.04% Cu, 1.90 gpt Au; 6 m @ 0.19% Cu, 0.49 gpt Au; 15 m @ 1.48% Cu (including 9 m @ 2.22% Cu); 6 m @ 0.10% Cu, 0.49 gpt Au in one hole; 27 m @ 0.31% Cu; 18 m @ 0.36% Cu; 6 m @ 0.25% Cu; 12 m @ 0.80% Cu; 6 m @ 1.19% Cu; 66 m @ 0.33% Cu in a second hole, 33 m @ 0.29% Cu; 6 m @ 0.25% Cu in the third hole and 15 m @ 0.23% Cu; 3 m @ 0.10% Cu, 0.45 gpt Au; 3 m @ 0.17% Cu, 0.37 gpt Au; 6 m @ 0.29% Cu. “Two additional holes on the western flank of Cerro Verde have intercepted broad zones of mineralization further to the west, while hole SJ21-32 has confirmed copper mineralization in addition to further extending oxide gold”. Next in line is the completion of an initial resource estimate at Cerro Verde and planning of the next exploration phase, which is likely to include targets at La Trinidad and Mesa Grande prospects.
  • Endeavour Silver Corp. reported results from drilling at its Parral project in Chihuahua. Highlighted true width intercepts comprise 0.98 m @ 169 gpt Ag, 3.9% Pb, 2.3% Zn; 3.24 m @ 194 gpt Ag, 0.1% Pb, 0.2% Zn; 5.91 m @ 218 gpt Ag, 0.6% Pb, 1.1% Zn; 2.31 m @ 314 gpt Ag, 0.7% Pb, 0.3% Zn; 1.92 m @ 203 gpt Ag, 0.2% Pb; 1.13 m @ 439 gpt Ag, 0.23% Cu, 0.6% Pb, 0.1% Zn; 3.27 m @ 392 gpt Ag, 0.6% Pb, 2.1% Zn at Veta Colorada Sierra Plata Deep vein; 1.96 m @ 513 gpt Ag, 0.11% Cu, 2.0% Pb, 1.7% Zn; 4.23 m @ 0.14 gpt Au, 331 gpt Ag, 2.8% Pb, 2.2% Zn; 1.84 m @ 178 gpt Ag, 0.9% Pb, 1.0% Zn; 1.25 m @ 0.14 gpt Au, 310 gpt Ag, 1.8% Pb, 2.0% Zn; 3.49 m @ 395 gpt Ag, 0.14% Cu, 2.8% Pb, 2.7% Zn; 1.17 m @ 289 gpt Ag, 0.12% Cu, 3.0% Pb, 2.6% Zn; 1.18 m @ 191 gpt Ag, 0.8% Pb, 1.6% Zn; 2.48 m @ 0.12 gpt Au, 532 gpt Ag, 0.28% Cu, 3.1% Pb, 3.1% Zn at the Veta Colorada El Verde vein zone, and 2.09 m @ 0.61 gpt Au, 55 gpt Ag, 0.13% Cu, 3.0% Pb, 3.5% Zn; 0.48 m @ 0.49 gpt Au, 75 gpt Ag, 5.8% Pb, 4.7% Zn, at the Veta Colorada-San Joaquín vein. “Veta Colorada (including the Sierra Plata and El Verde mines) was a past producing mining operation owned by Grupo Mexico that closed in 1991 due to low silver prices. Mineralization, which occurs in a major silver vein structure that ranges from 1 to 30 metres thick, was mined seven levels down to 300-metre depths below surface in places and was traced for seven kilometres”.
  • Altaley Mining Corp. filed an updated technical report, including a preliminary feasibility study (PFS) for its Tahuehueto project in Durango. The previous report released in March 2021 “contained errors related to net smelter return calculations that under-estimated the PFS economics”, the updated disclosure increases “approximately 30% to the overall economics of the project”. The project envisages 1 K tpd operation with a mine life (LOM) of 10.9 years, to process a total of 3.55 M tonnes of ore @ 2.58 gpt Au, 50.5 gpt Ag, 0.3% Cu, 1.1% Pb, 1.9% Zn, with planned recovery of 87% Au, 85% Ag, 85% Cu, 85% Pb, 68% Zn to have a total net smelter return (NSR) of $645.4 M, LOM total capital cost of $56.9 M, an AISC of $855 per Oz AuEq, an EBITDA LOM of 357.7 M and an IRR of 65.5 with a payback period of 2 years. The project estimate of resources stands at 6.26 M tonnes @ 47 gpt Ag, 2.11 gpt Au, 0.27% Cu, 0.9% Pb, 1.98% Zn containing 9.45 M Oz Ag, 425 K Oz Au, 36.6 M Lb Cu, 123.9 M Lb Pb, 273.3 M Lb Zn in measures and indicated resources and 0.92 M tonnes @ 28.5 gpt Ag, 1.02 gpt Au, 0.15% Cu, 1.16% Pb, 1.96% Zn, containing 0.84 M Oz Ag, 30 K Oz Au, 3.K M Lb Cu, 23.6 M Lb Pb, 39.7 M Lb Zn.
  • Sierra Madre Gold and Silver Ltd. announced results from additional drill holes from the phase 2 program at its Tepic project in Nayarit. Highlighted core length intervals comprise 6.65 m @ 210 gpt Ag, 1.06 gpt Au (including 1.5 m @ 524 gpt Ag, 2.47 gpt Au); 4.5 m @ 264 gpt Ag, 1.85 gpt Au (including 1.5 m @ 740 gpt Ag, 2.37 gpt Au); 3.05 m @ 625 gpt Ag, 1.60 gpt Au; 1.5 m @ 185 gpt Ag, 0.26 gpt Au; 1.5 m @ 110 gpt Ag, 0.23 gpt Au. “Ten of the twelve holes were designed to test up dip or strike extensions of known structures outside of the volumes used in the historical resource estimations”.
  • Chesapeake Gold Corp. released results for the last 13 PQ size infill core drill holes at its Metates project in Durango. The 2021-2022 infill drill campaign totaled 7,485 m, returning 22% higher grades within intrusive hosted mineralization. Highlighted core-length intervals comprise 357 m @ 0.63 gpt Au, 20.5 gpt Ag; 357 m @ 1.00 gpt Au, 31.6 gpt Ag; 39 m @ 0.28 gpt Au, 30.9 gpt Ag; 118 m @ 1.24 gpt Au, 14.4 gpt Ag; 350 m @ 0.74 gpt Au, 23.2 gpt Ag (including 43 m @ 1.17 gpt Au, 8.6 gpt Ag); 69 m @ 0.50 gpt Au, 16.3 gpt Ag; 45 m @ 1.01 gpt Au, 11.5 gpt Ag; 226 m @ 0.95 gpt Au, 16.2 gpt Ag; 9 m @ 2.20 gpt Au, 6.8 gpt Ag; 405 m @ 0.90 gpt Au, 27.6 gpt Ag; 172 m @ 0.41 gpt Au, 25.4 gpt Ag; 45 m @ 0.82 gpt Au, 56.8 gpt Ag; 63 m @ 0.59 gpt Au, 10.6 gpt Ag; 138 m @ 1.38 gpt Au, 11.1 gpt Ag. “The infill drill holes targeted the intrusive-hosted mineralization and are spaced at approximately 50 metre intervals”.
  • SilverCrest Metals Inc. updated on construction at Las Chispas project in Sonora. At the end of Q1 construction at Las Chispas was 95.7%, with plant start-up on track for Q2 2022. Capital costs remain on budget, the power line is to be completed in Q2 and energized in Q3 while rental power generators were commissioned and are operational. A total of 19 .5 Km of underground development have been completed, 2.0 km in the last quarter. “The H1, 2022 exploration focus at Las Chispas is to map and sample unexplored areas and generate new drill targets”. At the end of Q1 2022 SilverCrest had cash and cash equivalents of $152 M, and $30 M available on a $120 M financing facility.
  • Discovery Silver Corp. updated on work at Cordero, in Chihuahua, to the Q4 2021. During the period a PEA on Cordero was completed, outlining a 16-year mine life producing 26 M Oz AgEq per year at an AISC of $12.35 per Oz AgEq. Work for this 2022 includes the pre-feasibility study (PFS), resource expansion and initial drill testing of five targets within the extensive land package owned by Discovery.
  • GR Silver Mining Ltd. announced results from its surface infill drill program at Plomosas, in Sinaloa. The results are part of the phase 1 program in the Plomosas mine area. Some of the highlighted true width results comprise 0.9 m @ 435 gpt Ag, 1.1% Pb, 5.1% Zn; 0.9 m @ 805 gpt Ag, 4.2% Pb, 5.6% Zn; 4.5 m @ 257 gpt Ag, 0.3% Pb, 0.4% Zn; 9.0 m @ 96 gpt Ag, 0.11 gpt Au, 0.2% Pb, 0.4% Zn; 2.8 m @ 176 gpt Ag, 0.3% Pb, 0.4% Zn; 8.5 m @ 410 gpt Ag, 0.30 gpt Au, 1.0% Pb, 1.0% Zn; 6.9 m @ 1,521 gpt Ag, 1.2% Pb, 1.6% Zn; 30.5 m @ 12 gpt Ag, 0.28 gpt Au, 1.0% Pb, 0.8% Zn; 16.0 m @ 289 gpt Ag, 0.1% Pb, 0.1% Zn; 15.7 m @ 238 gpt Ag, 0.1% Pb, 0.1% Zn; 9.5 m @ 372 gpt Ag, 0.1% Pb, 0.1% Zn.  

ON DEALS AND CORPORATE ISSUES

  • No Relevant News.

ON SOCIAL RESPONSIBILITY

  • No Relevant News.

On the image below: Quartz-barite-FeOx vein in the Sonoran Desert. Picture by Jorge Cirett.

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

By Jorge Cirett

During the 15th week of the year (April 11th to April 17th, 2022), at least 30 press releases were announced by companies working in Mexico. To note, nine companies posted exploration advances on their properties, six released first quarter 2022 reports, one updated on project work, six reported drill results on their advanced properties and one signed an exploitation agreement on a small scale mine. ON MEXICO ISSUES, Mexico’s president Andrés M. López Obrador warned he will change the mining law to make a government’s monopoly on lithium, if his Energy bill is not approved. According to Miner Deck, three of the top ten gold intercepts on the second week of April were drilled by companies working in Mexico. Six of the top ten silver intercepts were by companies in Mexico. ON EXPLORATION, in Sonora, Tocvan Ventures provided drill results on the Pilar project; Infinitum Copper released trench results at La Adelita; Silver Spruce had the preventive report approved for drilling at Diamante; Reyna Gold started drilling at La Gloria; Aztec Minerals finished the phase 2 RC drill campaign at Cervantes. In Chihuahua, Reyna Silver released drill results from Batopilas. In Nayarit, Sierra Madre Gold and Silver released drilling results from Tepic. In Guerrero, Pantera Silver reported drill results from Nuevo Taxco. In Zacatecas, Defiance Silver completed drilling at the Lucita prospect in its Zacatecas Silver project. ON MINING, Endeavour Silver, Fortuna Silver, Avino Silver, Golden Minerals, Great Panther and Torex Gold released first quarter 2022 reports. ON FINANCING, No Relevant News.  ON RESOURCES AND DEVELOPMENT, Prime Mining released drill results from Los Reyes, in Sinaloa. Silver Tiger Metals provided drilling results for El Tigre, in Sonora. Silverton Metals released RC drilling results from Peñasco Quemado, in Sonora. Vizsla Silver reported drilling results from the Animas vein corridor at Panuco, in Sinaloa. Endeavour Silver informed on drill results from the El Curso property at its Guanaceví mine in Durango. Fabled Silver Gold is planning phase 2 drilling at Santa Maria, in Chihuahua. SilverCrest Metals announced drill results from Picacho, in Sonora. ON DEALS AND CORPORATE ISSUES, Galore Resources entered into an exploitation agreement with Oztoc Metal Corp for mining at the Duraznillo mine in Zacatecas.  ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUES

  • Mexico’s president Andrés M. López Obrador, warned that, “if Congress does not approve a constitutional reform on electrical matters next week….. he will push for a rewrite of the country’s Mining Law”. He stated that modifying the Mining Law requires simple majority (which he has), “to make lithium a mineral that belongs to the nation, to the Mexicans”.
  • According to Miner Deck, three of the top ten gold intercepts on the second week of April were from companies working in Mexico: Prime Mining (fifth) with 4.23 m @ 52.08 gpt Au at Los Reyes, in Sinaloa; Tocvan Ventures (eighth) with 116.9 m @ 1.2 gpt Au at Pilar, in Sonora, and Silver Crest Metals (tenth) with 4.7 m @ 20.86 gpt Au at Picacho, in Sonora.
  • According to Miner Deck, six of the top ten silver intercepts on the second week of April were by companies in Mexico: Endeavour Silver (third) with 7.46 m @ 2,067 gpt Ag at Guanaceví, in Durango; Prime Mining (fourth) with 4.3 m @ 1,008 gpt Ag at Los Reyes in Sinaloa; Defiance Silver (sixth) with 3.33 m @ 709 gpt Ag, Vizsla Silver (seventh) with 2.4 m @ 959 gpt Ag at Panuco, in Sinaloa; Silver Tiger Metals (nineth) with 23.8 m @ 95 gpt Ag at El Tigre in Sonora; Sierra Madre Gold and Silver (tenth) with 2.55 m @ 878 gpt Ag at Tepic.

ON EXPLORATION

  • Silver Spruce Resources Inc. announced the approval by SEMARNAT (Environmental authority) of the preventive report for drilling at the 1,057 ha Diamante property in Sonora. The program envisages 2,000 m of reverse circulation drilling starting in May, on the La Prieta, Aguaje, El Chon, El Chon Oeste, La Olla, Calton, El Cumbro, and Mezquite-Raizudo targets.
  • Sierra Madre Gold and Silver Ltd. released results from seven drill holes of the phase II drilling program at the Tepic project in Nayarit. “Four of the holes are up-dip extensions from the previously defined historic resource area while three are strike extensions”. Highlighted core-length intercepts comprise 7.05 m @ 125 gpt Ag, 0.90 gpt Au; 3.2 m @ 194 gpt Ag, 1.36 gpt Au; 12.1 m @ 146 gpt Ag, 0.64 gpt Au (including 1.5 m @ 489 gpt Ag, 0.77 gpt Au); 2.25 m @ 48 gpt Ag, 0.90 gpt Au; 1.5 m @ 7 gpt Ag, 1.89 gpt Au; 4.6 m @ 156 gpt Ag, 1.20 gpt Au; 4.8 m @ 106 gpt Ag, 1.48 gpt Au; 2.55 m @ 878 gpt Ag, 3.04 gpt Au; 1.05 m @ 11 gpt Ag, 2.66 gpt Au. True widths estimated at 90% of core-length intervals.
  • Reyna Gold Corp. reported channel and dump sample results from the Sombrero target at its La Gloria property in Sonora. Highlighted results comprise 8.68 gpt Au, 0.56% Cu, 64 gpt Ag, 0.4% Pb, 0.1% Zn; 8.17 gpt Au, 0.34% Cu, 49 gpt Ag, 0.1% Pb; 2.84 gpt Au, 0.17% Cu, 36 gpt Ag, 0.3% Pb, 0.2% Zn. “Reyna has started drilling at El Sombrero and expanded the number of planned holes from an initial 10 to now 22 holes in the El Sombrero target as part of its ongoing 10,000-meter drill program, which now comprises of a total of 36 holes”.
  • Pantera Silver Corp. reported initial drill results from the Nuevo Taxco project in Guerrero. Highlighted true width (tw) results comprise 0.55 m @ 98 gpt Ag; 1.15 m @ 0.10 gpt Au, 48 gpt Ag; 1.6 m @ 98 gpt Ag; 1.3 m @ 96 gpt Ag; 0.8 m @ 82 gpt Ag; 1.85 m @ 0.09 gpt Au, 225 gpt Ag on the Negrilla vein and 5.05 m @ 0.30 gpt Au, 108 gpt Ag; 1.75 m @ 0.42 gpt Au, 7 gpt Ag; 1.00 m @ 0.41 gpt Au, 14 gpt Ag; 0.86 m @ 1.86 gpt Au, 35 gpt Ag; 1.25 m @ 0.51 gpt Au, 9 gpt Ag; 4.29 m @ 0.78 gpt Au, 9 gpt Ag on the Creston de Maria vein. This drilling campaign tested 630 m along strike on two veins of 21 in the property, with a combined longitude of more than 11 km.
  • Tocvan Ventures Corp. announced results from one core hole at its Pilar property in Sonora. Highlighted core length intervals comprise 116.85 m @ 1.19 gpt Au, 7 gpt Ag (including 48.05 m @ 2.81 gpt Au, 9 gpt Ag, which includes 10.20 m @ 12.04 gpt Au, 23 gpt Ag). This core hole is a twin form a reverse circulation hole that returned 94.6 m @ 1.6 gpt Au. Nine holes totalling 1,562 m have been completed of phase III drilling.
  • Reyna Silver Corp. released results from 19 holes totalling 7,964 m of its 10,000 m stage 1 drill program at Batopilas, in Chihuahua. Highlighted core length intervals comprise 9.35 m @ 3.38 gpt Au (including 3.65 m @ 8.18 gpt Au, which includes 1.65 m @ 12.75 gpt Au); 1.45 m @ 6.87 gpt Au (including 0.35 m @ 18.95 gpt Au); 5.40 m @ 5.68 gpt Au (including 3.65 m @ 8.18 gpt Au); 0.75 m @ 9.55 gpt Au; 1.8 m @ 4.06 gpt Au. Reyna Silver is doing more exploration work to define the extent of gold rich versus silver rich mineralization, and their relationship.
  • Aztec Minerals Corp. and JV partner Kootenay finished the phase 2 reverse circulation program with 26 holes totaling 4,649 m at Cervantes, in Sonora. Highlighted hole length intervals comprise 88.41 m @ 1.10 gpt Au (including 15.24 m @ 3.96 gpt Au); 108.2 m @ 0.37 gpt Au; 45.7 m @ 0.45 gpt Au, 167.20 m @ 1.00 gpt Au, (including 24.4 m @ 4.25 gpt Au); 136.8 m @ 1.49 gpt Au (including 51.68 m @ 3.42 gpt Au); 100.32 m @ 0.75 gpt Au; 12.2 m @ 0.92 gpt Au; 7.6 m @ 0.68 gpt Au; 54.72 m @ 0.88 gpt Au; 7.6 m @ 0.74 gpt Au; 86.64 m @ 0.50 gpt Au; 138.32 m @ 0.53 gpt Au; 132.2 m @ 0.43 gpt Au; 9.1 m @ 0.46 gpt Au; 152.4 m @ 0.97 gpt Au (including 33.5 m @ 2.05 gpt Au); 54.9 m @ 0.48 gpt Au.  The focus of the program was to “better define the open pit, heap leach gold potential of the porphyry oxide cap at California, evaluate the potential for deeper copper-gold porphyry sulfide mineralization underlying the oxide cap, test for north and west extensions of the California mineralization at California North and Jasper, and assess the breccia potential of Purisima East”.
  • Infinitum Copper Corp. released trenching results from La Adelita project in Sonora-Sinaloa. Trench 2 returned a true thickness of 9.15 m @ 16.45 gpt Au, 1.90% Cu, 3 gpt Ag. Three magneto-telluric lines have been completed at Las Trancas, with interpreted results pending. Surface samples from Andalucia and Cerro Potreritos have returned up to 5.49 gpt Au, 1.34% Cu, 139 gpt Ag. “Additional surface sampling at Pericos confirmed the presence of skarn mineralization on the west limb of the Cerro Grande anticline, 800 m to the west of the Cerro Grande zone” with samples up to 1.38% Cu, 77 gpt Ag, 1.31 gpt Au.
  • Defiance Silver Corp. informed in the completed 4,750 m drill program at the 2,674 ha Lucita property, on Defiance’s Zacatecas project in Zacatecas. This is the first drilling in the central Lucita asset currently under option from Pan American Silver Corp.. Highlighted core length intervals comprise 3.33 m @ 0.06 gpt Au, 709 gpt Ag (including 1.15 m @ 0.11 gpt Au, 1,604 gpt Ag); 0.94 m @ 0.11 gpt Au, 107 gpt Ag; 2.73 m @ 0.16 gpt Au, 102 gpt Ag; 3.48 m @ 514 gpt Ag (including 1.9 m @ 940 gpt Ag); 1.05 m @ 0.19 gpt Au, 317 gpt Ag; 4.09 m @ 0.10 gpt Au, 137 gpt Ag (including 0.6 m @ 0.28 gpt Au, 618 gpt Ag); 1.51 m @ 0.76 gpt Au, 192 gpt Ag. “The dominant silver mineralization consists of pyrargyrite-proustite, acanthite, and argentite hosted in polyphase quartz and calcite veins, breccias, and stockwork veinlet zones”.

ON MINING

  • Endeavour Silver Corp. reported first quarter 2022 production. At Guanceví, in Durango, 101.2 K tonnes were produced at 1,125 tonnes per day (tpd) grading 407 gpt Ag, 1.19 gpt Au, recovering 85.6% Ag, 89.8% Au to produce 1.13 M Oz Ag, 3,477 Oz Au. At Bolañitos, in Guanajuato, 104.9 K tonnes were produced @ 61 gpt Ag, 1.73 gpt Au, recovering 85.9% Ag, 89.6% Au to produce 181.1 K Oz Ag, 5,218 Oz Au.
  • Fortuna Silver Mines Inc. released production results for the first quarter 2022, including figures from its operations in Mexico. In San Jose, in Oaxaca, 250.9 K tonnes were milled at a rate of 2,918 tpd, grading 185 gpt Ag, 1.13 gpt Au, recovering 91% Ag, 90% Au to recover 1.36 M Oz Ag, 8,239 Oz Au.
  • Avino Silver & Gold Mines Ltd. reported first quarter 2022 production results. At Avino, in Durango, 111.1 K tonnes were milled, averaging 50 gpt Ag, 0.29 gpt Au, 0.56% Cu, recovering 92% Ag, 77% Au, 89% Cu, to produce 164.4 K Oz Ag, 801 Oz Au, 1.22 M Lb Cu (457.8 K Oz AgEq). During the quarter the acquisition of La Preciosa project was completed, and drill results from La Potosina of up to 2.95 m @ 668 gpt AgEq were released. “Avino is completing its conversion to dry stack tailings”.
  • Golden Minerals Co. reported production for the first quarter 2022. At Rodeo, in Durango, 203.6 K tonnes were mined, 10.9 K tonnes stockpiled awaiting process, 88.6 K tonnes in low grade stockpiles 47.4 K tonnes processed at a rate of 527 tpd, grading 3.1 gpt Au, 11.6 gpt Ag, recovering 75.4% Au, 82.8% Ag, to produce 3,608 Oz Au, 13.9 K Oz Ag (3,787 Oz AuEq).
  • Great Panther Mining Ltd. reported production first quarter 2022 results, including figures from its Mexican operations. At Topia, in Durango, 16.3 K tonnes were mined, 16.2 K tonnes milled, averaging 362 gpt Ag, 0.84 gpt Au, recovering 92% Ag, 64% Au, to produce 173.7 K Oz Ag, 282 Oz Au, 365 tonnes Pb, 525 tonnes Zn (3,876 Oz Au Eq). The Guanajuato Mine Complex is currently in care and maintenance, while waiting for the CONAGUA (water use authority) tailings dam permit.
  • Torex Gold Resources Inc. released production results for Q1 2022. At its Limon-Guajes mine in Guerrero, 12,600 tpd were processed, 1,260 tpd mined from underground, 11,780 tpd mined by open pit, to produce 112,440 Oz Au during the period.  

ON FINANCING

  • No Relevant News.

ON RESOURCES AND DEVELOPMENT

  • Prime Mining Corp. released drill results for 26 holes at its Los Reyes project in Sinaloa. A second high-grade ore shoot and the deepest mineralization to date was identified in Guadalupe East, with bonanza-grades found in 550 m step out from the inferred open pit boundary. True width highlighted results comprise 4.0 m @ 52.0 gpt Au, 1,008 gpt Ag; 0.6 m @ 7.62 gpt Au, 1,970 gpt Ag; 18.3 m @ 1.38 gpt Au, 39 gpt Ag; 14.1 m @ 1.12 gpt Au, 38 gpt Ag; 2.5 m @ 4.09 gpt Au, 103 gpt Ag; 7.5 m @ 1.47 gpt Au, 40 gpt Ag; 1.9 m @ 3.72 gpt Au, 370 gpt Ag; 1.0 m @ 1.57 gpt Au; 0.6 m @ 1.19 gpt Au, 9 gpt Ag; 2.8 m @ 1.38 gpt Au, 63 gpt Ag.
  • Silver Tiger Metals Inc. provided drilling results from its El Tigre project in Sonora. The seven drill holes targeted down dip under El Tigre historic workings at the North end, highlighted core-length intervals comprise 27.8 m @ 0.08 gpt Au, 18 gpt Ag; 1.0 m @ 0.09 gpt Au, 158 gpt Ag; 26 m @ 0.06 gpt Au, 25 gpt Ag; 2.1 m @ 0.23 gpt Au, 250 gpt Ag; 10.2 m @ 1.63 gpt Au, 6 gpt Ag (including 1.5 m @ 10.7 gpt Au, 23 gpt Ag); 1.2 m @ 0.04 gpt Au, 104 gpt Ag; 0.5 m @ 1.69 gpt Au, 101 gpt Ag; 23.8 m @ 0.19 gpt Au, 95 gpt Ag (including 2.3 m @ 0.94 gpt Au, 542 gpt Ag); 0.5 m @ 2.21 gpt Au, 1,200 gpt Ag. Underground rehabilitation is progressing at the historic El Tigre mine, with 215 m completed to date.
  • Silverton Metals Corp. released results from its step-out reverse circulation drilling at Peñasco Quemado, in Sonora. Highlighted hole-length intervals comprise 6.75 m @ 0.10 gpt Au, 46 gpt Ag; 1.00 m @ 75 gpt Ag, 0.37% Cu; 0.97 m @ 69 gpt Ag, 0.42% Cu; 5.10 m @ 27 gpt Ag; 11.30 m @ 54 gpt Ag (including 0.95 m @ 438 gpt Ag, 0.62% Cu); 3.74 m @ 47 gpt Ag; 11.85 m @ 17 gpt Ag; 19.70 m @ 27 gpt Ag; 5.30 m @ 46 gpt Ag; 54.10 m @ 23 gpt Ag; 6.45 m @ 73 gpt Ag; 7.45 m @ 26 gpt Ag; 10.30 m @ 31 gpt Ag; 5.60 m @ 42 gpt Ag. A total of 2,105 meters were drilled in nine holes.
  • Vizsla Silver Corp. reported results for 19 holes targeting the Animas vein corridor at its Panuco project in Sinaloa. Highlighted true width intercepts comprise 5.84 m @ 39 gpt Ag, 0.48 gpt Au, 0.2% Pb, 1.9% Zn; 3.09 m @ 84 gpt Ag, 1.30 gpt Au, 0.2% Pb, 0.3% Zn; 5.25 m @ 85 gpt Ag, 0.50 gpt Au; 1.14 m @ 121 gpt Ag, 2.21 gpt Au, 1.9% Pb, 3.2% Zn; 4.71 m @ 391 gpt Ag, 2.23 gpt Au, 1.5% Pb, 1.1% Zn; 7.13 m @ 39 gpt Ag, 1.16 gpt Au, 0.1% Pb, 0.8% Zn; 4.62 m @ 29 gpt Ag, 1.24 gpt Au, 0.2% Zn; 1.10 m @ 195 gpt Ag, 1.17 gpt Au; 5.66 m @ 124 gpt Ag, 0.98 gpt Au, 0.4% Pb, 1.3% Zn; 1.14 m @ 312 gpt Ag, 1.23 gpt Au, 0.1% Pb, 0.2% Zn; 1.00 m @ 622 gpt Ag, 2.75 gpt Au; 1.26 m @ 787 gpt Ag, 3.65 gpt Au, 0.2% Zn. Highlighted core length intervals comprise 2.40 m @ 959 gpt Ag, 5.97 gpt Au; 2.10 m @ 486 gpt Ag, 2.68 gpt Au; 0.95 m @ 113 gpt Ag, 4.85 gpt Au, 0.1% Pb, 0.3% Zn.
  • Endeavour Silver Corp. informed on high-grade underground drill results from El Curso property at its Guanceví mine in Durango. Highlighted true width results from the underground program comprise 2.09 m @ 0.92 gpt Au, 296 gpt Ag; 4.22 m @ 0.93 gpt Au, 428 gpt Ag; 7.26 m @ 0.84 gpt Au, 324 gpt Ag; 7.23 m @ 0.63 gpt Au, 323 gpt Ag; 1.34 m @ 1.30 gpt Au, 498 gpt Ag; 4.18 m @ 2.63 gpt Au, 857 gpt Ag; 7.46 m @ 5.83 gpt Au, 2,067 gpt Ag (including 0.47 m @ 56.50 gpt Au, 22,562 gpt Ag); 7.57 m @ 1.89 gpt Au, 975 gpt Ag; 6.26 m @ 0.60 gpt Au, 354 gpt Ag; 1.80 m @ 1.33 gpt Au, 814 gpt Ag; 13.12 m @ 0.74 gpt Au, 214 gpt Ag; 7.99 m @ 1.52 gpt Au, 262 gpt Ag; 1.87 m @ 2.36 gpt Au, 807 gpt Ag. El Curso property, covers the Santa Cruz vein “between Endeavour’s previously mined Porvenir Cuatro orebody and the Milache orebody currently being mined”.
  • Fabled Silver Gold Corp. is currently planning the phase 2 diamond drill program at Santa Maria, in Chihuahua. The Santa Maria veins were found in phase 1 drilling to be “mineralized breccias at the contacts or within diorite dikes”, which has led to the definition of five mineral/structural trends to pursue.
  • SilverCrest Metals Inc. announced results from drilling at El Picacho property in Sonora. This release covers 56,780 m in 247 holes (of a total to date of 68,200 m in 289 holes by SilverCrest). The focus of this campaign was to redefine and expand the Picacho Main vein historical resource of 364.4 K tonnes @ 8.54 gpt Au, 40 gpt Ag, containing 100 K Oz Au, 473 K Oz Ag defined in 2010 with only 14 holes and underground workings. The Picacho Main vein is 550 m long, 300 min depth, with an estimated true width of 2.4 m @ 5.42 gpt Au, 24 gpt Ag (Best tw intercept: 3.7 m @ 20.86 gpt Au, 73 gpt Ag); The Picacho Hanging Wall vein is 500 m long, 200 m in depth, 1.5 m in width @ 4.38 gpt Au, 38 gpt Ag (Best tw intercept: 1.3 m @ 42.3 gpt Au, 542 gpt Ag); The Picacho Hanging Wall 2 vein is 200 m long, 135 m in depth, 0.8 m in width @ 6.32 gpt Au, 46 gpt Ag (Best tw intercept: 2.8 m @ 11.9 gpt Au, 21 gpt Ag); The Picacho Hanging Wall 3 vein is 80 m long, 100 m in depth, 0.5 m in width @ 8.7 gpt Au, 450 gpt Ag (Best tw intercept: 0.8 m @ 10.71 gpt Au, 7 gpt Ag); The Picacho Footwall vein is 100 m long, 175 m in depth, 1.3 m in width @ 9.45 gpt Au, 16.1 gpt Ag (Best tw intercept: 1.7 m @ 37.09 gpt Au, 32 gpt Ag).  

ON DEALS AND CORPORATE ISSUES

  • Galore Resources Inc. entered into an exploitation agreement between Oztoc Metal Corp. S. de R.L. de C.V. to reengage the mining activities that the previous tenant, URBYASA was conducting at the Duraznillo ranch in Zacatecas. The five-year contract includes the Los Gemelos I and Duende 7 mining concessions. Galore will receive 30% of gross revenues and OZTOC is to keep 70% for development, production and profit from the Duraznillo mine.

ON SOCIAL RESPONSIBILITY

  • No Relevant News.

On the image below: Banded quartz-barite vein in the Sonoran desert. Picture by Jorge Cirett.

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

By Jorge Cirett

During the 11th week of the year (March 14th to March 20th, 2022), at least 21 press releases were announced by companies working in Mexico. To note, only three companies posted exploration advances on their properties, four released quarterly and full year 2021 reports, four informed on financing rounds, three on share granting, repurchase or new market trading, two released new resource estimates, three posted drill results on properties with resources and one informed on the repossession of a property and mining concessions. ON MEXICO ISSUES, five of the top ten silver intercepts on the second week of March were obtained by companies working in Mexico. ON EXPLORATION, in Sonora, Rockland Resources recommenced exploration at its Elektra lithium project; Infinitum Copper discovered three new mineralization zones at Adelita. In Zacatecas, Orla Mining is to begin brownfield exploration around Camino Rojo. ON MINING, Avino Silver, Sierra Metals, American Gold and Silver, Orla Mining and Starcore International released quarterly and full year 2021 reports. ON FINANCING, Golden Tag granted stock options to directors, officers employees and consultants. Reyna Gold started trading at the OTCQB Market Exchange in USA. Oroco Resource announced the oversubscription of its previously announced private placement. Silver Tiger closed its financing for gross proceeds of C$23 M. Altaley Mining is to conduct a financing round for up to C$5 M. Minaurum Gold informed on the acquisition of 16% of Infinitum copper shares. First Majestic Silver was approved to extend its share repurchase program to up to 10 M shares.  ON RESOURCES AND DEVELOPMENT, GoGold Resources released drilling results from El Favor East, at Los Ricos North in Jalisco. Torex Gold Resources released the 2021 resource estimate (4.47 M Oz Au) for El Limon Guajes Complex in Guerrero. Fortuna Silver Mines updated the resource estimate (46.6 M Oz Ag, 296 K Oz Au) to the end of 2021 on its San José mine in Oaxaca. Vizsla Silver reported results from drilling the Cruz Negra vein at Panuco, in Sinaloa. Mithril Resources provided drilling results from Copalquin, in Durango. ON DEALS AND CORPORATE ISSUES, Galore Resources regained control of the Duraznillo ranch and the mining concessions on its Dos Santos project in Zacatecas. ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUES

  • Of the top ten silver intersects released on the second week of March, five were from companies working in Mexico, according to Miner Deck. Vizsla Silver was first with 9.45 m @ 1,559 gpt Ag at Panuco, in Sinaloa, whilst Magna Gold was second with 55.95 m @ 156 gpt Ag at Margarita, in Chihuahua. Prime Mining, Capitan Mining and Avino Silver were also in the list, with their project in Sinaloa and Durango.

ON EXPLORATION

  • Rockland Resources Ltd. announced exploration is to initiate at its Elektra project in Sonora. The company is to review the surface and drill information generated in 2017, when 1,762 m were drilled in 16 holes. Best intercepts of that campaign include 33 m @ 1,058 ppm Li and 24 m @ 1,050 ppm Li. The target is a lithium in clays deposit akin to the nearby “Sonora Lithium” property owned by Bacanora Lithium PLC.
  • Orla Mining Ltd. is to begin exploration in and around its Camino Rojo mine in Zacatecas. The company is planning to invest $10 M in exploration in Mexico during 2022. The current year drilling program is to infill drill the deposit and reduce the spacing to 50-125m  in the sulfide zone. Last year program returned up to 108 m @ 2.38 gpt Au; 111 m @ 2.63 gpt Au; 58.5 m @ 2.51 gpt Au; 115.5 m @ 2.11 gpt Au; 64.6 m @ 3.04 gpt Au; 55.5 m @ 4.47 gpt Au; 55.5 m @ 4.95 gpt Au. The 2021 regional exploration program included an airborne magnetic survey, an IP survey, soil sampling and direct exploration under cover with 9,146 m of RAB drilling on 284 holes (holes 500 m apart, with 1,000 m line spacing) to sample the bedrock under shallow cover (up to 3 m @ 1.94 gpt Au, 7 km from Camino Rojo). That effort produced several targets that are to be followed-up this year, while target generation still continues.
  • Infinitum Copper Corp. announced the discovery of new zones of high-grade copper mineralization on the surface at its Adelita project in Sonora-Sinaloa. Mapping, prospecting and sampling (1,024 channel samples) program identified the Cerro Grande Footwall, Las Trancas and Pericos zones. At Cerro Grande, sampling on a garnet skarn alteration zone returned 7.50 m @ 1.88% Cu, 0.89 gpt Au, 127 gpt Ag, 0.9% Zn. Skarn hosted mineralization is also present at Pericos, estimated at 12 m in width, with results pending. At Las Trancas an oxidized breccia returned 0.5 m @ 3.67% Cu, 1.14 gpt Au, 4.2% Zn, with the structure having been traced for 780 m, and pending results in trench samples. A 14.8 line-km magneto-telluric geophysical survey is to be conducted over the Cerro Grande, Cerro Grande Footwall, Pericos and Las Trancas zones. Drilling is to start in late March.

ON MINING

  • Avino Silver & Gold Mines Ltd. released financial results for Q4 and year 2021. At Avino, in Durango, in 2021 the company milled 165.3 K tonnes (103.5 K tonnes on Q4, after normalization of operations) to produce 245.4 K Oz Ag, 3,386 Oz Au, 1.87 M Lb Cu (842.4 K Oz AgEq). Over 15,500 m of drilling were completed in 124 holes during the year. In October of 2021 Avino entered into a definitive agreement with Coeur Mining Inc. to acquire the La Preciosa project, close to the Avino mine “for upfront consideration of $29.7 million on closing and $5 million due within 12 months of closing. Further contingent consideration including cash, royalties and a mineral reserve discovery payment. The transaction is expected to close during Q1 2022”. At the year’s end the company held US$22.3 M in cash.
  • Sierra Metals Inc. reported 2021 financial results and 2022 guidance, without specifying figures of production by mine. At Bolivar, in Chihuahua, cash cost was $2.18 per Lb CuEq and the AISC was $4.22 per Lb CuEq. At Cusi, in Chihuahua, cash cost was $16.71 per Oz  AgEq, and the AISC was $28.59. At Bolivar, 13,072 m of drilling were completed, as well as 21,059 m of infill drilling and 4,703 m of brownfield drilling at Cusi. The company held cash and cash equivalents of $34.9 M by the end of the year. “In Q4 2021, the Company announced its increased focus on copper and other steel-making products, including the strategic review process for the silver-producing Cusi Mine in Mexico. As part of this process, the carrying value of Cusi was reviewed. As a result, a non-cash impairment charge of $35 million was recognized for the year”.
  • Americas Gold and Silver Corp. reported consolidated financial and operational results for the year 2021. At Cosalá, in Sinaloa, re-started operations in September after a long struggle with an illegal blockade “after reaching an agreement with union representatives and certain Mexican government ministries in July 2021…. Production from the San Rafael mine increased during Q4‐2021 as the normal mining cycle was re‐established.  The Los Braceros processing plant was fed with a combination of over 20,000 tonnes of existing stockpiled ore and new production from the mine.  The milling rate ramped up in tandem with mine production, averaging approximately 1,700 tonnes per day during December 2021 and continuing into 2022”. During the Q4 61 K Oz Ag, 4.2 M Lb Zn, 1.7 M Lb Pb were produced.
  • Orla Mining Ltd. announced results for the Q4 and year 2021. During its commissioning year, at Camino Rojo in Zacatecas, 2.06 M tonnes were mined, of which 1.71 M tonnes were processed, 349.4 K placed on the low grade stockpile and further 2.05 M tonnes of waste were moved. The stacked ore grade was 0.74 gpt Au, and the gold produced was 2,422 Oz. “Orla continues to evaluate multiple development scenarios on the Camino Rojo Sulphide Project. The development scenarios being considered to potentially form the basis of a Preliminary Economic Assessment (“PEA”) currently include: (1) an underground mining option, (2) an open pit mining option with processing at a to-be-constructed sulphide facility at Camino Rojo, and (3) an open pit mining option with processing at Newmont’s Peñasquito plant. Based on the additional drilling and testwork to date, all development options remain possible”.
  • Starcore International Mines Ltd. filed the results for the third quarter ended January 2022. At San Martin, in Queretaro, 56.7 K tonnes were milled @ 1.46 gpt Au, 21.2 gpt Ag, recovering 88.1% Au, 45.8% Ag, to produce 2.4 K Oz Au, 17.8 K Oz Ag (2,588 Oz AuEq), at an AISC of $1,623 per Oz AuEq.

ON FINANCING

  • Silver Bull Resources Inc. granted 3.3 M stock options to various directors, officers, employees and consultants (Sierra Mojada, Coahuila).
  • Reyna Gold Corp. announced its common shares started trading on the OTCQB Market Exchange in USA (La Gloria, Sonora).
  • Oroco Resource Corp. announced the over subscription of the previously announced private placement (Santo Tomás, Sinaloa).
  • Silver Tiger Metals Inc. closed the previously announced bought deal offering of common shares of the company, for gross proceeds of C$23 M (El Tigre, Sonora).
  • Altaley Mining Corp. intends to conduct a non-brokered private placement financing, to raise gross proceeds of up to C$5 M. The net proceeds will be used for working capital expenses related to the beginning of mining and milling operations at Tahuehueto, in Durango.
  • Minaurum Gold Inc. informed on the acquisition of 6.1 M shares of Infinitum Copper Corp., which represents 16% of Infinitum (Alamos Silver, Sonora; Adelita, Sonora).
  • First Majestic Silver Corp. received regulatory consent to extend its share repurchase program, with the ability now to repurchase up to 10 M shares, or 3.8% of the issued and outstanding shares (San Dimas, Sinaloa).

ON RESOURCES AND DEVELOPMENT

  • GoGold Resources Inc. released results from five drill holes at El Favor East, within Los Ricos North project in Jalisco. Highlighted core length intervals comprise 1.0 m @ 0.15 gpt Au, 73 gpt Ag; 1.2 m @ 0.24 gpt Au, 82 gpt Au; 6.0 m @ 0.18 gpt Au, 100 gpt Ag (including 1.1 m @ 0.09 gpt Au, 210 gpt Ag); 1.2 m @ 0.50 gpt Au, 152 gpt Ag; 1.7 m @ 0.90 gpt Au, 257 gpt Ag; 45.5 m @ 0.52 gpt Au, 97 gpt Ag (including 0.9 m @ 13.05 gpt Au, 716 gpt Ag); 5.0 m @ 0.42 gpt Au, 93 gpt Ag; 7.4 m @ 0.36 gpt Au, 107 gpt Ag.
  • Torex Gold Resources Inc. reported mineral reserves and resources for the El Limón Guajes Complex in Guerrero, to the end of 2021. Proven and probable reserves of 17.5 M tonnes @ 3.03 gpt Au, containing 1.74 M Oz Au; measured and indicated resources of 21.31 M tonnes @ 3.61 gpt Au containing 2.47 M Oz Au; inferred resources of 2.19 M tonnes @ 3.74 gpt Au containing 264 K Oz Au. During 2021, 529 K Oz Au were processed.
  • Fortuna Silver Mines Inc. updated mineral reserve and resource estimates for its San José mine in Oaxaca. Proven and probable reserves stand at 6.16 M tonnes @ 131 gpt Ag, 0.67 gpt Au, containing 17.3 M Oz Ag, 113 K Oz Au; measured and indicated resources stand at 940 K tonnes @ 99 gpt Ag, 0.66 gpt Au, containing 3.0 M Oz Ag, 20 K Oz Ag; inferred resources stand at 6.82 M tonnes @ 120 gpt Ag, 0.74 gpt Au, containing 26.3 M Oz Ag, 163 K Oz Au.  
  • Vizsla Silver Corp. reported results from five holes targeting the Cruz Negra vein, at its Panuco project in Sinaloa. Highlighted core-length intervals comprise 0.70 m @ 1,795 gpt Ag, 21.00 gpt Au, 0.2% Pb, 0.5% Zn; 4.45 m @ 34 gpt Ag, 3.26 gpt Au, 0.1% Pb, 1.0% Zn; 1.65 m @ 1,066 gpt Au, 9.85 gpt Au, 0.4% Pb, 0.7% Zn; 3.70 m @ 440 gpt Ag, 3.74 gpt Au, 0.5% Pb, 2.2% Zn; 3.20 m @ 160 gpt Ag, 10.40 gpt Au, 0.5% Pb, 4.3% Zn.
  • Mithril Resources Ltd. provided drilling results from its Copalquin project in Durango. Highlighted core-length intervals comprise 6.00 m @ 1.84 gpt Au, 23 gpt Ag; 1.00 m @ 1.79 gpt Au, 25 gpt Ag; 1.70 m @ 1.77 gpt Au, 117 gpt Ag; 2.14 m @ 0.89 gpt Au, 64 gpt Ag in one hole, 4.80 m @ 0.91 gpt Au, 57 gpt Ag; 2.30 m @ 1.75 gpt Au, 135 gpt Ag; 0.55 m @ 5.89 gpt Au, 474 gpt Ag in a second hole, 8.10 m @ 1.64 gpt Au, 106 gpt Ag in a third hole. Exploration work has defined over 7 km of veins in the project, with a major target area identified at La Montura, on strike with El Refugio, whereas Los Pinos area displays strong alteration, gold in soils and early stage drilling results of 0.60 m @ 9.91 gpt Au, 161 gpt Ag.

ON DEALS AND CORPORATE ISSUES

  • Galore Resources Inc. announced that “has legally and safely regained possession and control of the Duraznillo Ranch mining operation” at its Dos Santos project in Zacatecas. In January 2018 Galore entered into a mining exploitation agreement with Urbanizaciones y Acabados, S.A. de C.V., but due to a breach in the agreement Galore asked and had to file a demand to recover the Duraznillo ranch and the mining properties. On March 8, 2022, the ranch and the mining properties were peaceful and smoothly repossessed by Galore

ON SOCIAL RESPONSIBILITY

  • No Relevant News.

On the image below: Barite-quartz-hematite vein from a project in the Sonoran desert. Picture by Jorge Cirett.

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

By Jorge Cirett

During the 9th week of the year (February 28th to March 06th, 2022), at least 26 press releases were announced by companies working in Mexico. To note, nine companies posted exploration advances on their properties, one released Q4 and full year 2021 reports, one has started to receive a royalty from mining, three announced the opening or closing of private placements, six reported on drilling results or resource estimations and three on deals and corporate issues. ON MEXICO ISSUES, the governor of Zacatecas is fostering the relationship with the Zacatecas Mining Cluster. ON EXPLORATION, in Sonora, Heliostar Metals informed on drilling at Cumaro; Aztec Minerals released RC drilling results at Cervantes; Minaurum Gold presented drilling results from Alamos Silver; Silver Spruce initiated exploration at Diamante; In Chihuahua, Golden Minerals reported results from the last seven holes at Yoquivo. In Estado de Mexico, Xali Gold defined drill targets at El Oro. In Nayarit, Sierra Madre Gold and Silver mobilized a second rig to its Tepic project. In Guerrero, Pantera Silver completed a drilling campaign at Nuevo Taxco. ON MINING, Argonaut Gold presented 2021 production figures for El Castillo-San Agustin and La Colorada. Maverix Metals commenced to receive NSR payments from the Camino Rojo mine. ON FINANCING, Golden Tag, Osisko Development and Zacatecas Silver opened or closed tranches of financing for $1.46 M (Total $3.25 M), $84.8 M and $15 M respectively. ON RESOURCES AND DEVELOPMENT, Torex Gold updated the mineral resource estimate at Media Luna in Guerrero. Osisko Development announced 2021 drilling results from Sapuchi and Golfo de Oro, at its San Antonio project in Sonora. Vizsla Silver presented, then retracted and corrected the maiden resource estimate for Panuco, in Sinaloa. Great Panther Mining updated the mineral resource estimate for San Ignacio and the Guanajuato Mine Complex in Guanajuato. Sonoro Gold reported RC drilling results on its Cerro Caliche project in Sonora.  ON DEALS AND CORPORATE ISSUES, Zacatecas Silver is acquiring from Alamos Gold the Esperanza gold deposit in Morelos. Tocvan Ventures updated on exploration activities in Pilar and Picacho, in Sonora. Capstone Mining merge with Mantos Copper Bermuda has been approved in British Columbia. ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUES

  • David Monreal, Zacatecas governor, offered the Zacatecas mining cluster a reinforcing relationship between the state government and the mining industry, for the development of local value chains.

ON EXPLORATION

  • Heliostar Metals Ltd. announced drill intercepts from its Cumaro project in Sonora. Highlighted core-length intervals from the Verde target comprise 1.10 m @ 1.12 gpt Au, 44 gpt Ag; 1.15 m @ 1.48 gpt Au, 29 gpt Ag; 7.0 m @ 0.47 gpt Au, 6 gpt Ag (including 1.50 m @ 1.20 gpt Au, 11 gpt Ag); 2.20 m @ 0.58 gpt Au, 20 gpt Ag; 8.10 m @ 0.71 gpt Au, 14 gpt Ag (including 3.00 m @ 1.42 gpt Au, 17 gpt Ag; 8.30 m @ 0.47 gpt Au, 1 gpt Ag (including 2.00 m @ 1.11 gpt Au, 1 gpt Ag). Assays are pending for five holes on the Verde target, and six holes at the Dos Amigos and Palmita vein corridors. “Drilling is ongoing on targets in the eastern half of the Cumaro property”.
  • Pantera Silver Corp. completed the first stage of exploration drilling at the Nuevo Taxco project, in Guerrero. A total of 692 m were drilled in six holes targeting two of the 21 veins known in the property. Three holes were drilled on each of La Negrilla and El Creston de Maria veins, targeting 100 m along strike and 40 m below La Negrilla mine workings in the first vein, and, disseminated sulfides vein and veinlets on the second one; two previously unknown structures were also intercepted on El Creston de Maria drilling. Results are pending.
  • Aztec Minerals Corp. released results from reverse circulation drilling at its Cervantes project in Sonora. Highlighted hole-length intervals comprise 88.1 m @ 1.1 gpt Au (including 54.88 m @ 1.56 gpt Au and 15.24 m @ 3.96 gpt Au); 108.2 m @ 0.37 gpt Au; 45.7 m @ 0.45 gpt Au; 167.2 m @ 1.00 gpt Au (including 24.4 m @ 4.25 gpt Au); 136.8 m @ 1.49 gpt Au (including 51.68 m @ 3.42 gpt Au); 100.32 m @ 0.75 gpt Au; 12.2 m @ 0.92 gpt Au; 7.6 m @ 0.68 gpt Au; 63.84 m @ 0.42 gpt Au. “The primary focus of the Phase 2 RC drill program at Cervantes is to expand the previously drilled California zone by completing two drill hole fences parallel to and on either side of the 2017-18” previous face.
  • Minaurum Gold Inc. presented drilling results from the final phase II holes drilled in 2021 at its Alamos Silver project in Sonora.  At Minas Nuevas highlighted core-length intervals comprise 9.90 m @ 609 gpt Ag, 0.18% Cu, 0.3% Pb, 0.5% Zn (including 0.90 m @ 1,145 gpt Ag, 0.12% Cu, 1.2% Pb, 2.5% Zn), and 21.70 m @ 93 gpt Ag, 0.1% Cu, 0.2% Pb, 0.2% Zn (including 4.85 m @ 159 gpt Ag, 0.22% Cu, 0.4% Pb, 0.4% Zn); 7.35 m @ 184 gpt Ag, 0.22% Cu, 0.2% Pb, 0.3% Zn (including 4.05 m @ 289 gpt Ag, 0.38% Cu, 0.3% Pb, 0.4% Zn) at San José, and 2.95 m @ 232 gpt Ag, 0.16% Cu, 0.3% Pb, 1.1% Zn; 0.95 m @ 763 gpt Ag, 0.25 gpt Au, 2.14% Cu, 0.2% Pb, 0.2% Zn; 0.45 m @ 399 gpt Ag, 0.53% Cu, 0.9% Pb, 1.7% Zn. “In 2021, Minaurum drilled 9,386.50 m in 22 holes focusing on sizable step-outs at the Ana, Europa, San José, Alessandra, Cotera, and Minas Nuevas vein zones”.  
  • Silver Spruce Resources Inc. initiated geological mapping on the main drilling targets of the Diamante project in Sonora. “Geological features of epithermal low to intermediate sulphidation Ag-Au (Pb-Zn), high sulphidation Au-Cu, and potential porphyry style Au-Cu occur as disseminated, stockwork and vein styles accompanied by phyllic, argillic, advanced argillic and propylitic zones, with nearsurface overprinting by weathering with iron oxide and oxyhydroxide staining, jarosite and relict vuggy silica”.
  • Xali Gold Corp. finalized locations for drill pads at El Oro project in Estado de Mexico. “New drill targets have been identified by using a 3D Leapfrog model and drillholes have been designed to test potential extensions to high-grade gold and silver zones intersected by previous drilling … The project covers 20 veins with past production and more than 57 veins in total, from which approximately 6.4 million ounces of gold and 74 million ounces of silver were reported to have been produced from just two of these veins”.
  • Golden Minerals Co. reported results from the final seven holes of the 21-holes campaign at the Yoquivo project in Chihuahua. Highlighted true width intervals comprise 1.4 m @ 7.14 gpt Au, 2,058 gpt Ag (including 0.5 m @ 19.50 gpt Au, 5,844 gpt Ag); 0.5 m @ 0.59 gpt Au, 89 gpt Ag; 1.2 m @ 1.26 gpt Au, 169 gpt Ag (including 0.10 m @ 10.20 gpt Au, 1,319 gpt Ag); 1.8 m @ 0.60 gpt Au, 64 gpt Ag; 1.1 m @ 0.26 gpt Au, 149 gpt Ag; 0.2 m @ 1.90 gpt Au, 148 gpt Ag. An environmental report has been submitted to carry out a 10,000 m drill program.
  • Mammoth Resources Corp. provided results from three holes drilled at its Tenoriba project in Chihuahua. Highlighted core length intervals comprise 16.5 m @ 0.27 gpt Au, 5 gpt Ag; 22.5 m @ 0.22 gpt Au, 3 gpt Ag; 18.0 m @ 1.21 gpt Au, 1 gpt Ag; 22.5 m @ 0.57 gpt Au, 1 gpt Ag; 13.5 m @ 0.30 gpt Au, 6 gpt Ag; 7.5 m @ 0.22 gpt Au, 1 gpt Ag. “In all holes the mineralization appears to be controlled by irregular sulphide enriched fractures-veinlets with minor quartz and/or alteration clay minerals typical to High Sulphidation mineral systems”.
  • Sierra Madre Gold and Silver Ltd. announced that a second drill rig has been mobilized to its Tepic project in Nayarit. “This second rig is smaller and more portable than the first while maintaining the depth capacity and large core diameter that the Company requires. The decision to mobilize a second rig is a result of the success of the trenching program which has identified several additional drill targets and the superior assay turnaround time at the current laboratory”.

ON MINING

  • Argonaut Gold Inc. presented its Q4 and full-year 2021 report, including figures from its Mexican operations. During the year, at El Castillo-San Agustin in Durango, 37.24 M tonnes were moved, of which 20.16 M tonnes were of ore grading 0.29 gpt Au, producing 116,263 Oz Au, 570.7 K Oz Ag produced at cash cost $991 per Oz AuEq. At La Colorada, in Sonora, 16.22 M tonnes were moved, of which 4.83 M tonnes were ore grading 0.63 gpt Au, producing 64,860 Oz Au, 178.8 K Oz Ag at cash cost $730 per Oz Au. Production guidance for 2022 is 38-45 K Oz Au at El Castillo, 62-70 K Oz Au at San Agustin and 48-55 K Oz Au at La Colorada at cash cost $1,100 to $1,190 per Oz Au.
  • Maverix Metals Inc. informed its expectations on attributable gold equivalent ounces from royalties in diverse projects it has a stake on, including figures from one project in Mexico. Orla Mining’s Camino Rojo mine in Zacatecas has already poured its first gold and declaration of commercial production is expected to be made during the first quarter 2022. Maverix has a 2% NSR on Camino Rojo production.

ON FINANCING

  • Golden Tag Resources Ltd. completed the second and second tranche of the previously announced non-brokered private placement, for aggregate proceeds of $1.46 M, which coupled with the proceeds of the first tranche amount to $3.25 M. The company paid $7 K and issued 28 K finder’s warrants in connection with the last tranche (San Diego, Durango).
  • Osisko Development Corp. closed the first tranche of its previously announced non-brokered private placement, for gross proceeds of US$84.8 M. No commission or finder’s fee will be paid by Osisko (San Antonio, Sonora).
  • Zacatecas Silver Corp. is to complete a brokered private placement for total proceeds of up to $15 M. “Zacatecas Silver intends to use the net proceeds of the offering for the acquisition, exploration and development of the Esperanza Gold Project, exploration of the Zacatecas Properties and for general working capital purposes”.

ON RESOURCES AND DEVELOPMENT

  • Torex Gold Resources Inc. updated the resource estimate on the Media Luna project in Guerrero. Indicated resources stand at 25.4 M tonnes grading 3.24 gpt Au, 32.5 gpt Ag, 1.08% Cu, containing 2.64 M Oz Au, 25.7 M Oz Ag, 602 M Lb Cu (or 4.39 M Oz AuEq), and inferred resources of 6.0 M tonnes @ 2.47 gpt Au, 20.8 gpt Ag, 0.81% Cu, containing 0.48 M Oz Au, 4.0 M Oz Ag, 106 M Lb Cu (or 0.78 M Oz AuEq). Not included in these resources are the 8.0 M tonnes @ 1.52 gpt Au, 34.6 gpt Ag, 1.27 % Cu, containing 0.39 M Oz Au, 8.9 M Oz Ag, 225 M Lb Cu (or 1.02 M Oz AuEq) of inferred resources the EPO mineralization zone, located north of the Media Luna deposit and south of the Balsas River. Exploration infill and step-out holes have been budgeted at $19 M for around 64,000 m of drilling.
  • Osisko Development Corp. announced the final drilling results from the 2021 exploration and category conversion drilling at its San Antonio project in Sonora. A total of 27,900 meters were drilled in 177 holes in 2021, with this news release covering 6,550 m in 33 holes at Golfo de Oro and 8,050 m at Sapuchi. Some of the highlighted core-length intervals comprise 19.5 m @ 0.81 gpt Au; 1.5 m @ 9.59 gpt Au; 21.2 m @ 2.47 gpt Au, 19 gpt Ag (including 1.5 m @ 18.00 gpt Au); 35.65 m @ 0.86 gpt Au; 31.25 m @ 1.45 gpt Au; 42.50 m @ 1.55 gpt Au at Golfo de Oro, and  5.30 m @ 3.58 gpt Au; 14.80 m @ 1.37 gpt Au; 26.65 m @ 0.93 gpt Au; 8.80 m @ 2.49 gpt Au; 40.8 m @ 1.00 gpt Au, 14 gpt Ag; 60.45 m @ 1.06 gpt Au; 22.95 m @ 1.07 gpt Au; 25.45 m @ 1.60 gpt Au; 10.50 m @ 2.39 gpt Au; 78.90 m @ 2.19 gpt Au (Including 3.20 m @ 21.30 gpt Au); 2.35 m @ 8.28 gpt Au; 18.30 m @ 1.41 gpt Au; 20.25 m @ 1.19 gpt Au; 17.90 m @ 1.75 gpt Au; 16.95 m @ 1.22 gpt Au; 13.80 m @ 1.31 gpt Au; 15.95 m @ 1.46 gpt Au; 18.60 m @ 1.18 gpt Au at Sapuchi. Most intervals run also 1 to 5 gpt Ag. “… gold mineralization is characterized by hydrothermal breccia that forms an approximately 3,000 m long east-northeast trending mineralization corridor with the Luz del Cobre copper deposit at the east. The gold mineralization is associated with intense chlorite and carbonate alteration and is intrusion related with host rock”.
  • Vizsla Silver Corp. presented the maiden resource estimate for its Panuco project in Sinaloa. Indicated mineral resources stand at 6.9 M tonnes grading 150 gpt Ag, 1.64 gpt Au, 0.27% Pb, 0.53% Zn (or 370 gpt AgEq), containing 33.2 M Oz Ag, 362.6 K Oz Au, 18 K tonnes Pb, 36 K tonnes Zn (81.6 M Oz AgEq). Inferred mineral resources stand at 5.3 M tonnes grading 156 gpt Ag, 1.51 gpt Au, 0.16% Pb, 0.35% Zn (or 334 gpt AgEq), containing 26.6 M Oz Ag, 256.6 K Oz Au, 8.5 K tonnes Pb, 18.8 K tonnes Zn (56.9 M Oz AgEq). A total of 124,915 m of drilling in 445 holes completed from 2019 to 2021 were utilized to calculate the resource estimate.
  • Vizsla Silver Corp. retracted the maiden resource estimate released on Feb 28, 2022 (see above) on its Panuco project in Sinaloa. “An internal review of the estimate identified a miscalculation made by an independent consultant in the conversion of lead and zinc grades into the silver equivalent calculation. This in-turn lifted lower grade zones above the economic cut-off, adding tonnes to the resource but lowering the overall grade”. The next restatement corrects this. Indicated mineral resources are estimated at 5.0 M tonnes @ 191 gpt Ag, 2.08 gpt Au, 0.26% Pb, 0.50% Zn, containing 30.5 M Oz Ag, 331.1 K Oz Au, 13 K tonnes Pb, 24.6 K tonnes Zn. Inferred resources are estimated at 4.1 M tonnes @ 187 gpt Ag, 1.79 gpt Au, 0.13% Pb, 0.30% Zn, containing 24.7 M Oz Ag, 235.8 K Oz Au.
  • Great Panther Mining Ltd. reported the filing of the technical report on updated mineral resourcesof the Guanajuato Mine Complex and San Ignacio operations in Guanajuato.
  • Sonoro Gold Corp. reported the results of the first 24 holes of its current 10,000 m reverse circulation drilling campaign at its Cerro Caliche project in Sonora. The goal of the program is to increase the size and grade of the oxide gold mineralization. The highlighted hole length intervals comprise 9.14 m @ 1.04 gpt Au; 22.86 m @ 1.55 gpt Au (Including 6 m @ 5.18 gpt Au); 3.05 m @ 19.56 gpt Au (including 1.53 m @ 37.90 gpt Au); 4.57 m @ 2.43 gpt Au; 27.43 m @ 5.36 gpt Au (including 4.57 m @ 7.16 gpt Au, and 4.57 m @ 22.09 gpt Au), 4.57 m @ 2.18 gpt Au.

ON DEALS AND CORPORATE ISSUES

  • Zacatecas Silver Corp. entered into a share purchase agreement on February 28, 2022 with Alamos Gold Inc. to acquire the Esperanza project in Morelos (previously known as Cerro Jumil). Esperanza is an advanced project with a measured and indicated resource of 34.35 M tonnes grading 0.98 gpt Au, 8.1 gpt Ag, containing 1,084,000 Oz Au, 8.93 M Oz Ag and inferred resources of 718 K tonnes @ 0.80 gpt Au, 15 gpt Ag, containing 18,000 Oz Au, 347 K Oz Ag. The project has 69,716 m of drilling in 389 holes. Zacatecas Silver is to pay Alamos Gold US$5 M and issue shares for US$10 M, a payment of US$5 M within two months of approval of an environmental impact assessment (MIA, in Spanish), further US$14 M within two months of either completion of a feasibility study (FS) or the announcement on decision of mine construction, and the payment of US$20 M within 6 months of commencement of commercial production. Also a $500 K finder’s fee is to be paid on closing of the transaction. “Alamos is entitled to receive 20% of the silver produced from Esperanza at a cash price of 20% of the prevailing spot silver price, subject to a maximum of 500,000 ounces of silver delivered to Alamos”.
  • Tocvan Ventures Corp. provided an update on its activities. At Pilar, in Sonora, the current phase III diamond drilling is in progress, with 1,200 m completed, results pending. Bulk samples for advanced metallurgy are at the lab, while the company moves towards a maiden resource estimate and bulk test mine. At Picacho, also in Sonora, exploration is commencing.
  • Capstone Mining Corp. announced the Supreme Court of British Columbia approved Capstone and Mantos Copper Bermuda Ltd. to proceed with their merge. Capstone owns the Cozamin mine in Zacatecas, the Pinto Valley mine in Arizona and the Santo Domingo project in Chile. Mantos Blancos owns the Mantos Blancos and Mantoverde (69.99%) mines in Chile.

ON SOCIAL RESPONSIBILITY

  • No Relevant News.

On the image below: Barite-quartz-hematite vein from a project in the Sonoran desert. Picture by Jorge Cirett.