During the 22nd week of the year (May 30th to June 5st, 2023), at least 11 press releases were announced by companies working in Mexico, with three reporting resources and developments of their properties, two communicating production and financial results, two disclosing deals and corporate issues, two informing on exploration results, one announcing financing issues, and one commenting on Mexican issues. ON MEXICO ISSUES, GoGold and Vizsla reported the best drilling intercepts in Mexico on the first week of June, 2023. ON EXPLORATION, In Sonora, Prismo commenced a trenching program at its Los Pavitos project. In Oaxaca, Vortex completed the field work for the environmental baseline study, and advanced surface geological investigations at its Zaachila project. ON MINING, Bear Creek reported Q1, 2023 production results from its Mercedes mine in Sonora. Minera Alamos reported Q1, 2023 selected financial results. ON FINANCING, Minera Alamos announced a USD $25M construction financing package termsheet executed for its Cerro de Oro Gold Project, Zacatecas. ON RESOURCES AND DEVELOPMENT, GoGold announced additional drilling results from Los Ricos South, within the Eagle Deposit in Jalisco. Vizsla reported results from five holes drilled on the recently discovered La Luisa Vein at its Panuco property in Sinaloa. Zacatecas Silver increased its Inferred Mineral Resource Estimate at the Panuco South and North Deposits within its Zacatecas property in Zacatecas State. ON DEALS AND CORPORATE ISSUES, Chesapeake granted stock options to its former Vice President Investor Relations & Corporate Development (Metates project, Durango). Golden Tag received approval from Mexico´s antitrust agency, the Comisión Federal de Competencia Económica (COFECE) on May 25, 2023, for the previously announced acquisition of the La Parrilla Silver Mine Complex in Durango. ON SOCIAL RESPONSIBILITY, no relevant news.
ON MEXICO ISSUE
GoGold Resources Inc., and Vizsla Silver Corp., reported the best drilling intercepts in Mexico on the first week of June, 2023. Details are shown in the table below:
ON EXPLORATION
Prismo Metals Inc., commenced a trenching program at its Los Pavitos project in Sonora to better define the orientation and full width of the mineralized structures prior to starting the drill campaign. Samples collected will be sent to the lab for analysis and results will be released by the middle of June, 2023.
Vortex Metals Inc., completed the field work for the environmental baseline study, and advanced surface geological investigations at its Zaachila project in Oaxaca. The field work commenced on May 16th and included biological studies and surface geological work. “This information is foundational in the preparation of the Environmental Impact Statement that SEMARNAT requires for the evaluation and approval of exploration drilling”. The results of this study will be an integral part of the Environmental Impact Assessment that Vortex Metals will submit in the coming weeks, bringing us one step closer to advancing the Zaachila copper project for mineral exploration of the previously identified significant anomalous copper mineralization.”
ON MINING
Bear Creek Mining Corporation reported Q1, 2023 production results from its Mercedes mine in Sonora. The company mined 133,621 tonnes with an average grade of 2.93 g/t Au and processed 134,487 tonnes with an average grade of 2.91 g/t Au and metallurgical recovery of 95.96% to produce 12,038 Oz Au. The company also reported 9,304 Oz Au sold and 3,182 Oz Au streamed. Cash and AISC per Oz Au sold and streamed were USD $1,386 and USD $ 1,670 respectively. Bear Creek recorded revenue of USD $24.3M from the sale of gold and silver; cost of goods sold of USD $14.4M; depletion and amortization of USD $11.2M; and gross loss of USD $1.3M.
Minera Alamos Inc., reported Q1, 2023 selected financial results. It reported revenues of CAD $6.78M; cost of goods sold of CAD $2.25M; net income of CAD $1.48M; cash and cash equivalents of CAD $10.2M; and working capital of CAD $19.89M.
ON FINANCING
Minera Alamos Inc., announced a USD $25M construction financing package termsheet executed for its Cerro de Oro Gold Project, Zacatecas. The Company has signed a termsheet for a USD $15M Loan Facility and USD $10M Royalty that is expected to close on or around July 14th upon signing of definitive documentation as well as board and regulatory approvals.
ON RESOURCES AND DEVELOPMENT
GoGold Resources Inc., announced additional drilling results from Los Ricos South, within the Eagle Deposit in Jalisco. Drilling highlights include hole LRGAG-22-164 with 3.21 g/t Au and 33 g/t Ag (3.64 g/t AuEq or 273 g/t AgEq) over 22.1m, including 20.21 g/t Au and 87 g/t Ag (21.37 g/t AuEq or 1,603 g/t AgEq) over 3.2m; hole LRGAG-22-165 with 4.61 g/t Au and 780 g/t Ag (15.01 g/t AuEq or 1,126 g/t AgEq) over 50m, including 22.9 g/t Au and 4,617 g/t Ag (84.45 g/t AuEq or 6,334 g/t AgEq) over 7.8m, including 59.98 g/t Au and 11,858 g/t Ag (218 g/t AuEq or 16,357 g/t AgEq) over 2.9m, including 201 g/t Au and 31,747 g/t Ag (624.29 g/t AuEq or 46,822 g/t AgEq) over 0.8m; hole LRGAG-22-172 with 3.27 g/t Au and 124 g/t Ag (4.92 g/t AuEq or 369 g/t AgEq) over 53.8m, including 8.09 g/t Au and 193 g/t Ag (10.67 g/t AuEq or 800 g/t AgEq) over 19.4m, including 13.72 g/t Au and 289 g/t Ag (17.57 g/t AuEq or 1,318 g/t AgEq) over 5.2m; hole LRGAG-22-173 with 3.67 g/t Au and 282 g/t Ag (7.43 g/t AuEq or 557 g/t AgEq) over 40.5m, including 5.35 g/t Au and 1,267 g/t Ag (22.24 g/t AuEq or 1,668 g/t AgEq) over 4.1m, including 8.9 g/t Au and 1,879 g/t Ag (33.95 g/t AuEq or 2,546 g/t AgEq) over 1.4m, including 11.8 g/t Au and 1,430 g/t Ag (30.87 g/t AuEq or 2,315 g/t AgEq) over 1m; hole LRGAG-22-176 with 2.54 g/t Au and 120 g/t Ag (4.14 g/t AuEq or 310 g/t AgEq) over 15.9m, including 9.03 g/t Au and 627 g/t Ag (17.4 g/t AuEq or 1,305 g/t AgEq) over 1.6m; and hole LRGAG-22-177 with 1.21 g/t Au and 145 g/t Ag (3.15 g/t AuEq or 236 g/t AgEq) over 31.7m, including 3.03 g/t Au and 393 g/t Ag (8.27 g/t AuEq or 620 g/t AgEq) over 9.8m, including 10.15 g/t Au and 1,357 g/t Ag (28.25 g/t AuEq or 2,118 g/t AgEq) over 2.3m. “The Eagle Deposit adjoins the Main Deposit and represents a northern extension of the previously defined Mineral Resource Estimate in the Los Ricos South Preliminary Economic Assessment (PEA).”
Vizsla Silver Corp., reported results from five holes drilled on the recently discovered La Luisa Vein at its Panuco property in Sinaloa. Drilling highlights (true widths reported) include hole NP-23-362 with 50 g/t Ag, 0.41 g/t Au, 0.5% Pb, and 2% Zn (163 g/t AgEq) over 0.8m, plus 372 g/t Ag, 5.82 g/t Au, 2.1% Pb, and 3.1% Zn (916 g/t AgEq) over 3.05m, including 1,418 g/t Ag, 21.54 g/t Au, 5.3% Pb, and 6.4% Zn (3,162 g/t AgEq) over 0.59m, plus 93 g/t Ag, 2.91 g/t Au, 1.4% Pb, and 2.4% Zn (410 g/t AgEq) over 5.2m, including 283 g/t Ag, 7.4 g/t Au, 5% Pb, and 3.9% Zn (1,054 g/t AgEq) over 0.76m; hole NP-23-373 with 69 g/t Ag, 3.62 g/t Au, 0.6% Pb, and 2.7% Zn (426 g/t AgEq) over 4.30m, including 210 g/t Ag, 8.09 g/t Au, 1.2% Pb, and 7% Zn (1,032 g/t AgEq) over 0.77m; and hole NP-22-375 with 593 g/t Ag, 0.78 g/t Au, 2% Pb, and 1.9% Zn (734 /t AgEq) over 1.4m. “The new drill results expand the high-grade footprint at La Luisa to 350m long by 450m down dip. Additionally, surface mapping and sampling has identified a near surface exploration target located ~600m along strike to the northwest”.
Zacatecas Silver Corp., increased by 25% its Inferred Mineral Resource Estimate at the Panuco South and North Deposits within its Zacatecas property in Zacatecas State. Updated silver Inferred Mineral Resource now consists of 0.37M tonnes of 236 g/t Ag and 0.24 g/t Au (255 g/t AgEq) for a total of 2.8M Oz Ag and 2.7K Oz Au (3M Oz AgEq) at Panuco North, and 3.04M tonnes of 166 g/t Ag and 0.17 g/t Au (179 g/t AgEq) for a total of 16.2M Oz Ag and 16.4K Oz Au (17.5M Oz AgEq) at Panuco South. Inferred Mineral Resource in both deposits are 3.41M tonnes of 173 g/t Ag and 0.18 g/t Au (187 g/t AgEq) for a total of 19M Oz Ag and 19.2K Oz Au (20.5M Oz AgEq).
ON DEALS AND CORPORATE ISSUES
Chesapeake Gold Corp., granted stock options to its former Vice President Investor Relations & Corporate Development, to purchase an aggregate of 100K common shares of the company at an exercise price of CAD $1.70 per share for a five-year term expiring May 29, 2028. The options will vest and be exercisable on the basis of 25% annually, commencing May 29, 2024, the first anniversary of the date of the grant (Metates project, Durango).
Golden Tag Resources Ltd., received approval from Mexico´s antitrust agency, the Comisión Federal de Competencia Económica (COFECE) on May 25, 2023, for the previously announced acquisition of the La Parrilla Silver Mine Complex in Durango. Golden Tag and First Majestic Silver Corp. have amended the Asset Purchase Agreement dated December 7, 2022 to reduce Golden Tag’s minimum required financing to $7.2M from $9M.
ON SOCIAL RESPONSIBILITY
No relevant news.
Content like what you have just read can be seen at https://gambusinoprospector.com/ and at LinkedIn’s Mexico Mineral Exploration Group.
On the picture above, flow banded rhyolite in a prospect in Durango, Mexico. Photo by Miguel A Heredia.
Quartz blade texture in a low-sulphidation epithermal vein
By Miguel A Heredia
During the 20th week of the year (May 17th to May 21st, 2023), at least 16 press releases were announced by companies working in Mexico, with four reporting resources and developments of their properties, four communicating production and financial results, three disclosing deals and corporate issues, two announcing financing issues, two informing on exploration results, and one commenting on Mexican issues. ON MEXICO ISSUES, Alamos Gold and Guanajuato Silver reported the best drilling intercepts in Mexico on the third week of May, 2023. ON EXPLORATION, In Sonora, Colibri reported a strong soil gas hydrocarbon gold anomaly at its Evelyn-Plomo project. In Oaxaca, Vortex initiated environmental and surface geological studies at its Zaachila project. ON MINING, Americas Gold and Silver reported Q1, 2023 production and financial results. Sierra Metals announced Q1, 2023 production and financial results from their Bolivar and Cusi mines in Chihuahua. Starcore reported Q4, 2023 production results from its San Martin mine in Queretaro. Excellon announced Q1, 2023 financial results. ON FINANCING, Fabled announced that it intends to complete a non-brokered private placement for gross proceeds of up to CAD $500K (Mecatona project, Chihuahua). Excellon announced a private placement financing for up to CAD $10M of subscription receipts (La Negra mine, Queretaro). ON RESOURCES AND DEVELOPMENT, Guanajuato Silver released drill results from their San Ignacio mine in Guanajuato and Topia mine in Durango. Alamos Gold reported results from its ongoing drilling program at Puerto del Aire deposit and Capulin target within its Mulatos mine in Sonora. GoGold announced results of its initial Preliminary Economic Assessment (PEA) at its Los Ricos North project in Jalisco. Tocvan provided an update and sampling results from a bulk sample completed at its Pilar project in Sonora. ON DEALS AND CORPORATE ISSUES, Vizsla granted stock options to Directors, Officers, Employees, and Consultants (Panuco project, Sinaloa). Fabled provided an update on the agreement with Kootenay to acquire the Mecatona property in Chihuahua. Excellon provided corporate highlights for the three month ended March 31, 2023. ON SOCIAL RESPONSIBILITY, no relevant news.
ON MEXICO ISSUE
Alamos Gold Inc., and Guanajuato Silver Company Ltd., reported the best drilling intercepts in Mexico on the third week of May, 2023. Details are shown in the table below:
ON EXPLORATION
Colibri Resource Corporation reported a strong soil gas hydrocarbon gold anomaly (SGH) south of the main Zone at its Evelyn-Plomo project in Sonora. To define this anomaly, a total of 110 soils samples were collected at 25m stations along 100m spaced lines. “Collectively, these interpreted features indicate a robust SGH response with a high degree of confidence that it is indicative of blind mineralization underlying the southern SGH gold anomaly”. Colibri plans to drill test this target with the hopes of expanding the Main Zone, as well as to continue evaluating the SGH method as a tool for future exploration on the Evelyn-Plomo project.
Vortex Metals Inc., initiated environmental and surface geological studies at its Zaachila project in Oaxaca. It will allow protecting the local environment and deepening the understanding of the project´s potential to advance its pursuit of multiple high-grade copper targets.
ON MINING
Americas Gold and Silver Corporation reported Q1, 2023 production and financial results from its Cosala operation in Sinaloa. The company produced approximately 265K Oz Ag, 2.7M Lb Pb, and 7.2M Lb Zn. Cash cost and AISC were USD $4.61 per Oz Ag and USD $9.52 per Oz Ag respectively. Production for 2023 is expected to be between 1.2-1.4M Oz Ag,11-13M Lb Pb, and 33-37M Lb Zn, benefiting from more production from the higher-grade silver areas in the Upper Zone of the San Rafael mine.
Sierra Metals Inc., announced Q1, 2023 production and financial results from their Bolivar and Cusi mines in Chihuahua. At Bolivar mine, the company processed 299K tonnes at a cash and AISC of USD $1.85 and USD $3.1 per CuEq payable pound. It reported cost of sales of USD $14.93M; a total cash cost of USD $13.16M; and a cash cost of USD $43.99 per ton processed. At Cusi mine, the company processed 59.1K tonnes at a cash and AISC of USD $23.02 and USD $29.8 per Oz AgEq payable. It reported cost of sales of USD $5.8M; a total cash cost of USD $5.23M; and a cash cost of USD $88.43 per ton processed.
Starcore International Mines Ltd., reported Q4, 2023 production results from its San Martin mine in Queretaro. The company milled 56,821 tonnes of 1.46 g/t Au and 11 g/t Ag with metallurgical recoveries of 86.12% and 48.72% respectively to produce 2,409 Oz AuEq.
Excellon Resources Inc., announced Q1, 2023 financial results. Excellon reported a reversal of the USD $22M litigation liability relating to the previously disclosed judgment against one of the company’s subsidiaries in Mexico; a gain on the deconsolidation of San Pedro of USD $24.25M; other income of USD $1.58M; and a net income of USD $15.9M. The company announced in its 2022 Preliminary Economic Assessment (PEA) a post-tax NPV (using a discount rate of 5%) of USD $132.4M and estimated restart capital of USD $20.9M, based on the PEA.
ON FINANCING
Fabled Silver Gold Corp., announced that it intends to complete a non-brokered private placement for gross proceeds of up to CAD $500K at a price of CAD $0.05 per unit. Gross proceeds will be used to complete a phase 1 exploration program at the Mecatona project in Chihuahua, and for general working capital purposes.
Excellon Resources Inc., announced a private placement financing for up to CAD $10M of subscription receipts at an offer price of CADS $0.35 per subscription receipt (La Negra mine, Queretaro).
ON RESOURCES AND DEVELOPMENT
Guanajuato Silver Company Ltd., released drill results from their San Ignacio mine in Guanajuato and Topia mine in Durango. At San Ignacio mine, drilling highlights reported in true widths include hole UGSI23-008 with 1.95 g/t Au and 501 g/t Ag (657 g/t AgEq) over 1.90m, including 3.42 g/t Au and 744 g/t Ag (1,018 g/t AgEq) over 0.70m, plus 2.01 g/t Au and 2 g/t Ag (163 g/t AgEq) over 0.22m, plus 0.23 g/t Au and 94 g/t Ag (113 g/t AgEq) over 0.35m; hole UGSI23-009 with 1.26 g/t Au and 415 g/t Ag (516 g/t AgEq) over 1.93m, including 4.14 g/t Au and 2,020 g/t Ag (2,351 g/t AgEq) over 0.22m, plus 0.25 g/t Au and 113 g/t Ag (133 g/t AgEq) over 0.77m, including 0.46 g/t Au and 215 g/t Ag (252 g/t AgEq) over 0.40m; and hole UGSI23-010 with 1.78 g/t Au and 557 g/t Ag (699 g/t AgEq) over 0.45m, plus 1.68 g/t Au and 8 g/t Ag (142 g/t AgEq) over 1.68m, including 2.57 g/t Au and 9 g/t Ag (215 g/t AgEq) over 0.64m, plus 1.72 g/t Au and 122 g/t Ag (260 g/t AgEq) over 1.72m, including 2.94 g/t Au and 151 g/t Ag (386 g/t AgEq) over 0.60m, plus 0.32 g/t Au and 334 g/t Ag (359 g/t AgEq) over 4.89m, including 1.25 g/t Au and 1,947 g/t Ag (2,047 g/t AgEq) over 0.37m. At Topia mine, drilling highlights reported in true widths include hole UT23-458 with 4.39 g/t Au, 660 g/t Ag, 3.2% Pb, and 8.5% Zn (1,435 g/t AgEq) over 0.45m, plus 13.89 g/t Au, 152 g/t Ag, 1% Pb, and 5.6% Zn (1,551 g/t AgEq) over 0.10m; hole UT23-459 with 2.02 g/t Au, 938 g/t Ag, 24.6% Pb, and 9.8% Zn (2,150 g/t AgEq) over 0.42m; hole UT23-460 with 8.16 g/t Au, 113 g/t Ag, 2.1% Pb, and 1.9% Zn (923 g/t AgEq) over 0.45m; hole UT23-461 with 3.53 g/t Au, 905 g/t Ag, 1.1% Pb, and 7.8% Zn (1,525 g/t AgEq) over 0.10m; hole UT23-463 with 6.55 g/t Au, 1,424 g/t Ag, 4.8% Pb, and 13.8% Zn (2,674 g/t AgEq) over 0.60m; and hole UT23-465 with 0.0 g/t Au, 731 g/t Ag, 4% Pb, and 0.2% Zn (851 g/t AgEq) over 0.15m.
Alamos Gold Inc., reported results from its ongoing drilling program at Puerto del Aire deposit and Capulin target within its Mulatos mine in Sonora. At Puerto del Aire deposit, drilling highlights reported in true widths and values > 40 g/t Au capped include hole 23MUL117 with 20.95 g/t Au (11.14 g/t Au cut) over 14.15m; hole 23MUL119 3.52 g/t Au over 17.05m, plus 8.33 g/t Au over 18m; hole 23MUL112 with 14.81 g/t Au (12.34 g/t Au cut) over 9.1m; hole 23MUL108 with 16.19 g/t Au (7.63 g/t Au cut) over 7.75m; hole 23MUL98 with 10.8 g/t Au over 3m, plus 33.14 g/t Au over 3.05m: and hole 23MUL115 with 15.49 g/t Au (13.89 g/t Au cut) over 6m. These results extend high-grade gold mineralization outside of Mineral Reserves and Resources at Puerto Del Aire. At Capulin target, drilling highlights include hole 23REF012 with 2.01 g/t Au over 82.45m, including 4.81 g/t Au over 16.40m, including 5.38 g/t Au over 12.35m. Capulin target is located 2km east of the former San Carlos open pit.
GoGold Resources Inc., announced results of its initial Preliminary Economic Assessment (PEA) at its Los Ricos North project in Jalisco. Highlights of the PEA include an after-tax NPV (using a discount rate of 5%) of USD $413M, with an after-tax IRR of USD $29%; a 13-year mine life producing a total of 110.3M payable Oz AgEq, consisting of 68M Oz Ag, 221.7K Oz Au, 22.8M Lb Cu, 144.1M Lb Pb, and 242.2M Lb Zn; an initial capital costs of USD $221M, including USD $29M in contingency costs, over an expected 18 month build, additional expansion capital of USD $137M, and sustaining capital costs of USD $6M over the life of mine (LOM); an average LOM operating cash costs of USD $9.50 per Oz AgEq, and all in sustaining costs (AISC) of USD $9.68 per Oz AgEq; an average annual production of 8.8M Oz AgEq in years one through twelve; and approximately 3/4 of LOM production is from four open pits containing oxide mineralization and approximately 1/4 is from a separate open pit which contains only sulphide mineralization.
Tocvan Ventures Corp., provided an update and sampling results from a bulk sample completed at its Pilar project in Sonora. Tocvan reported bulk sample material averaging grades of 1.9 g/t Au and 13 g/t Ag from 148 samples ranging from 0.8 to 3.4 g/t Au and from 5 to 26 g/t Ag. Additionally, 32 fine fraction samples excluded from heap leach process returned Au values from 1.2 to 2.8 g/t Au, with a weighted mean of 2.02 g/t Au, and Ag values from 9 to 25 g/t Ag, with a weighted mean of 16 g/t Ag. The fine fraction along with additional bulk sample material will be used in testing gravity recovery methods. “The heap leach process is currently underway for the Bulk Sample. Over 800 tonnes of Bulk Sample material have been prepared for heap leach processing, an additional 350 tonnes of crushed material and 250 tonnes of raw-bulk sample are available for gravity recovery and later agitated leach testing”.
ON DEALS AND CORPORATE ISSUES
Vizsla Silver Corporation granted 3.85M stock options at an exercise price of $1.60 to Directors, Officers, Employees, and Consultants. The options are exercisable for a period of five years and will vest over the next two years (Panuco project, Sinaloa).
Fabled Silver Gold Corp., provided an update on the agreement with Kootenay to acquire the Mecatona property in Chihuahua. “The company has been in the process of preparing required documentation in respect of the Proposed Transaction including a NI 43-101 Technical Report on the Mecatona Property. The Company is continuing to correspond with the TSX Venture Exchange regarding the Proposed Transaction and will provide further updates in due course”.
Excellon Resources Inc., provided corporate highlights for the three month ended March 31, 2023. The company announced the acquisition of the post-producing La Negra mine in Queretaro. La Negra is a fully permitted mine with Indicated Mineral Resources of approximately 15.1M Oz AgEq at 191 g/t AgEq and Inferred Mineral Resources of approximately 41.8M Oz AgEq at 202 g/t AgEq.
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, quartz blade texture in a low-sulphidation epithermal vein system in a prospect in Zacatecas, Mexico. Photo by Miguel A Heredia.
Quartz veining hosted in a hydrothermaly-altered intrusive
By Miguel A Heredia
During the 18th week of the year (May 1st to May 7th, 2023), at least 28 press releases were announced by companies working in Mexico, and 2 news published by the media, with eleven reporting resources and developments of their properties, six commenting on Mexican issues, four communicating production and financial results, three disclosing deals and corporate issues, three announcing financing issues, two informing on exploration results, and one discussing social issues. ON MEXICO ISSUES, Fortuna Silver reported an illegal blockade at its San Jose mine in Oaxaca. At least 40 companies from Canada and the United States that operate in Mexico expressed their intention to protect themselves after the approval of the reforms to the Mining Law. Chesapeake has initiated legal proceedings against the Dirección General de Minas of Mexico (DGM) with the Federal Court of Administrative Justice in the state of Durango, Mexico in response to the DGM’s cancellation of the San Vicente 3 mineral concession. Radius filed a legal demand with a Federal Mexican Court to obtain title to the Amelia 4 mining concession at its Amalia project in Chihuahua. The Senate of Mexico approved the mining reform that reduces and facilitates the cancellation of concessions. Bendito Resources, Infinitum Copper, Pan American Silver, and Silver Tiger reported the best drilling intercepts in Mexico on the first week of May, 2023. ON EXPLORATION, In Sonora, Infinitum Copper reported results from 6 of 12 drill holes collared at its Adelita project. In Chihuahua, Reyna Silver provided an update on their Batopilas and Guigui projects. ON MINING, Capstone, Argonaut, and First Majestic reported Q1, 2023 production and financial results for their Mexican operations. Minera Alamos reported full year 2022 production and financial results from its Santana property in Sonora. ON FINANCING, Sonoro Gold announced it plans to undertake a non-brokered private placement for gross proceeds of up to CAD $3M (Cerro Caliche project, Sonora). Kootenay announced a private placement for gross proceeds of $4M (Columba project, Chihuahua). First Majestic announced that its Board of Directors has declared a cash dividend payment in the amount of $0.0057 per common share for Q1, 2023. ON RESOURCES AND DEVELOPMENT, Xali received the change in soil use permit for its El Oro Tailings project in Mexico State. Bendito Resources presented results from the last 9 of 18 RC holes drilled at its El Alacran project in Sonora. Silver Tiger announced results from its ongoing drill program at its El Tigre project in Sonora. Capstone reported Mineral Reserves and Mineral Resources for its Cozamin property in Zacatecas as at January 1, 2023. GR Silver filed a NI 43-101 technical report to provide an updated resource estimate for its Plomosas project in Sinaloa. GoGold released additional results from its ongoing drilling campaign at its Los Ricos South project in Jalisco. Oroco presented a Mineral Resource Estimate as of April 21, 2013 for its Santo Tomas project in Sinaloa. Prime announced an updated Mineral Resource Estimate for its Los Reyes property in Sinaloa. Pan American Silver released results of eighth holes drilled at La Colorada Skarn project in Zacatecas. Minera Alamos announced positive results of an independent Preliminary Economic Assessment for its Cerro de Oro project in Zacatecas. Torex provided the second quarterly update on its Media Luna project in Guerrero. ON DEALS AND CORPORATE ISSUES, Bear Creek announced its CEO succession (Mercedes mine, Sonora). GR Silver announced the retirement of its CFO and the appointment of its replacement (Plomosas project, Sinaloa). Tarachi signed a definitive agreement for the sale of Magistral Tailings project in Durango. ON SOCIAL RESPONSIBILITY, Almaden completed a social impact assessment relating to its Ixtaca project in Puebla, and underlying mineral claim area.
ON MEXICO ISSUE
Fortuna Silver Mines Inc., reported an illegal blockade at its San Jose mine in Oaxaca due to a group of workers did not agree with the estimated amount the Company is to distribute among the workforce as part of the worker´s profit sharing entitlement. Profit sharing is a transparent calculation and is payable in accordance with Mexican legislation. As a consequence, operations at the mine have been temporarily halted.
At least 40 companies from Canada and the United States that operate in Mexico expressed their intention to protect themselves after the approval of the reforms to the Mining Law by the government because they consider that they are violating their rights and that they are being changing the rules of the game. The law firm Von Wobeser y Sierra, anticipated that they will also consider the international arbitration considered as a mechanism to resolve disputes within the framework of the Free Trade Agreement between Mexico, the United States and Canada (T-MEC) and the Trans-Pacific Economic Cooperation Agreement (TPP). The elimination of the concepts of Free Land and First Applicant are the elements that most concern companies because with them the government could “legalize” the non-granting of concessions to private parties, by giving the exploration monopoly to the Mexican Geological Service (SGM). ), warned the Mining Chamber of Mexico (Camimex). Until now, the Canadian mining company Silver Bull Resources presented in March to the International Center for Settlement of Investment Disputes (ICSID) its intention to claim economic damages for at least USD $178M for the blockade of its Sierra Mojada Project since September 2019. The American Vulcan Materials presented to ICSID a claim for an estimated damage of at least USD 1.9 B against Mexico for the closure and occupation of the Sac-Tun mine (formerly Calica) and the Punta Venado pier in Playa del Carmen. A resolution on this issue is pending since May 2022.
Chesapeake Gold Corporation has initiated legal proceedings against the Dirección General de Minas of Mexico (DGM) with the Federal Court of Administrative Justice in the state of Durango, Mexico in response to the DGM’s cancellation of the San Vicente 3 mineral concession, on the basis that the Company did not provide adequate evidence to support the Company’s performance of the exploration work required to maintain the concession. The Company’s legal position, approved by external Mexican legal counsel, is that the work required to maintain the concession was conducted on the property and appropriate evidence was submitted to the DGM to substantiate the work. The San Vicente 3 mineral concession is one of 12 mineral concessions comprising the Metates property, representing 700 hectares of the 4,260 hectares in the Metates project, and encompasses a portion of the Metates mineral resource. The Company intends to vigorously defend its position with respect to the San Vicente 3 mineral concession.
Radius Gold Inc., filed a legal demand with a Federal Mexican Court to obtain title to the Amelia 4 mining concession at its Amalia project in Chihuahua. “Radius and project JV partner Pan American Silver Corp. have completed all the requirements, fee payments and surveys for the Amalia 4 application. The mining authority of Chihuahua has processed and approved the submission without fault and passed the license to the Mexico Mining Directorate proposing title issuance. The regulated time for the mining authority to comment and request revision has passed and granting of title is a legal requirement under the mining law. Radius has filed a legal demand to enforce the granting of title. Radius legal counsel believes the Company has clear legal right to the application and title. Legal counsel has been successful in obtaining granted concessions in similar situations recently”.
The Senate of Mexico approved the mining reform that reduces and facilitates the cancellation of concessions. The legal changes were approved despite Canada’s claim and in an express session in which twenty laws and reforms were endorsed in just five hours. The senators approved modifications to the Mining, National Water, General Ecological Balance and Environmental Protection laws, and the General for the Prevention and Integral Management of Waste. The reform will allow the government to only grant mining concessions through a public tender and with prior consultation with indigenous peoples, in addition to facilitating the revocation of the license for environmental damage. The reform could generate tensions with the partners of the T-MEC, in particular with Canada, which has already complained in recent days. The Canadian Minister of International Trade, Mary Ng, revealed last Wednesday that she spoke with the Secretary of the Economy of Mexico, Raquel Buenrostro, to express the “concern” of the Canadian government with the then proposed reform of the country’s mining sector, in the that Canadian companies constitute the largest foreign investor.
GoGold Resources Inc., Bendito Resources Inc., Infinitum Copper Corp., Pan American Silver Corp., and Silver Tiger Metals Inc., reported the best drilling intercepts in Mexico on the first week of May, 2023. Details are shown in the table below:
ON EXPLORATION
Infinitum Copper Corp., reported results from 6 of 12 drill holes collared at its Adelita project in Sonora. Drilling highlights include hole ADD-22-0021 with 0.51% Cu, 0.16 g/t Au, 16 g/t Ag, and 0.6% Zn (1% CuEq) over a true width (TW) of 19.85m, including 0.83% Cu, 0.22 g/t Au, 22 g/t Ag and 0.8% Zn (1.51% CuEq) over a TW of 7.98m, including 0.41% Cu, 0.16 g/t Au, 14 g/t Ag, and 0.5% Zn (0.83% CuEq) over a TW of 8.69m; and hole AD-22-0028 with 0.8% Cu, 0.35 g/t Au, and 19 g/t Ag (1.22% CuEq) over a TW of 48.7m, including 0.85% Cu, 0.31 g/t Au, and 29 g/t Ag (1.34% CuEq) over a TW of 20.38m, including 1.03% Cu, 0.51 g/t Au, and 16 g/t Ag (1.54% CuEq) over a TW of 20.76m. “AD-22-0028 is the only drill hole which has intersected the large and distinct magneto-telluric anomaly on the eastern flank of the Cerro Grande anticline”. The intersection of hole AD-22- 0028 is open to the north, east and west.
Reyna Silver Corp., provided an update on their Batopilas and Guigui projects in Chihuahua. At Batopilas, Chihuahua, the company has carried out detailed sampling and structural programs, as well as conducted a detailed AMT geophysics study to outline major structures and features that may control vein control and location of mineralization, as well as to understand the historic ore shots geometry and mineralization surface expressions , including the newly identified gold-bearing structures. The company plans to drill again in the property a minimum of 3,000m once the final combining of the historical data, drill results, and detailed follow-up work is complete. At Guigui project, Chihuahua, the previous Phase 1 and 2 of drilling revealed critical components of an important CRD system. These drill programs identified a 0.5 square km skarn footprint that remains open in all directions. The company recently executed a Natural Source Audio MagnetoTellurics (NSAMT) survey and is waiting for the final interpretation to integrate into the developing drill-target model for the Phase 2 drilling program this year.
ON MINING
Capstone Copper Corp., reported Q1, 2023 production and financial results from its Cozamin property in Zacatecas. The company produced 11.65M Lb Cu at a cash cost of 1.72 per Lb Cu produced. Realized copper price was USD $4.17 per Lb.
Argonaut Gold Inc., reported production and financial results from their Mexican operations. At La Colorada, Sonora, the company reported that it sold 5,086 Oz Au; a cost of sales of USD $12.7M; a cost of sales per Oz Au sold of USD $2,505; a production cost of USD $8M; a cash and all in sustaining cost per Oz Au sold of USD $2,229 and USD $2,333 respectively. At San Agustin, Durango, it reported that 11,491 Oz Au were sold; a cost of sales of USD $22.7M; a cost of sales per Oz Au sold of USD $1,980; a production cost of USD $17.4M; a cash and all in sustaining cost per Oz Au sold of USD $1,558 and USD $1,627 respectively. At El Castillo, Durango, the company reported that it sold 7,358 Oz Au; a cost of sales of USD $14.5M; a cost of sales per Oz Au sold of USD $1,976; a production cost of USD $8.3M; a cash and all in sustaining cost per Oz Au sold of USD $1,675 in both cases.
First Majestic Silver Corp., reported Q1, 2023 production and financial results from their Mexican operations. Figures by mine operation is shown in the table below:
Minera Alamos Inc., reported full year 2022 production and financial results from its Santana property in Sonora. The company recovered and sold 11.67K Oz Au and reported revenue s of $21.7M; costs of goods sold of $13.5M for gross profits of $8.18M; net income of $5.6M; cash and cash equivalents of $13.15M; and working capital as of December 31, 2022 of $18.3M.
ON FINANCING
Sonoro Gold Corp., announced it plans to undertake a non-brokered private placement for gross proceeds of up to CAD $3M. The company will use the net proceeds to fund the ongoing development of a proposed heap leach mining operation at its Cerro Caliche project in Sonora.
Kootenay Silver Inc., announced a private placement for gross proceeds of $4M. Gross proceeds will be used for working capital requirements and other general corporate purposes (Columba project, Chihuahua).
First Majestic Silver Corp., announced that its Board of Directors has declared a cash dividend payment in the amount of USD $0.0057 per common share for Q1, 2023. The first quarter cash dividend will be paid to holders of record of First Majestic’s common shares as of the close of business on May 18, 2023, and will be distributed on or about June 9, 2023.
ON RESOURCES AND DEVELOPMENT
Xali Gold Corp., and its partner Sun River Gold Corp., received the change in soil use permit for its El Oro Tailings project in Mexico State. This is the main permit required for the El Oro Tailings project that allows moving out the tailings from the historical deposition site which is within the town of El Oro and to the industrial processing site outside of the town.
Bendito Resources Inc., presented results from the last 9 of 18 RC holes totaling 2,031m drilled at its El Alacran project in Sonora as part of the 2023 Phase 1 exploration program focused on demonstrating the southeastward extension of mineralization from the historical resources established at Loma Bonita and Mesa de Plata. Drilling highlights include hole BSS-23-011 with 0.13 g/t Au and 9 g/t Ag (0.24 g/t AuEq) over 33m, including 0.26 g/t Au and 20 g/t Ag (0.5 g/t AuEq) over 3m, plus 0.89 g/t Au and 22 g/t Ag (1,15 g/t AuEq) over 27m, including 1.89 g/t Au and 32 g/t Ag (2.27 g/t AuEq) over 6m, plus 1.32 g/t Au and 36 g/t Ag (1.74 g/t AuEq) over 3m; hole BSS-23-015 with 0.45 g/t Au and 2 g/t Ag (0.48 g/t AuEq) over 24m, including 2.37 g/t Au and 1 g/t Ag (2.39 g/t AuEq) over 3m, plus 0.27 g/t Au and 14 g/t Ag (0.44 g/t AuEq) over 63m, including 0.49 g/t Au and 39 g/t Ag (0.94 g/t AuEq) over 15m, plus 0.11 g/t Au and 17 g/t Ag (0.31 g/t AuEq) over 52.5m, including 0.21 g/t Au and 42 g/t Ag (0.71 g/t AuEq) over 7.5m; hole BSS-23-016 with 0.31 g/t Au and 11 g/t Ag (0.45 g/t AuEq) over 66m, including 2.26 g/t Au and 4 g/t Ag (2.3 g/t AuEq) over 7.5m, 8.06 g/t Au and 1 g/t Ag (8.07 g/t AgEq) over 1.5m, plus 0.15 g/t Au and 4 g/t Ag (0.2 g/t AuEq) over 19.5m, plus 0.16 g/t Au and 2 g/t Ag (0.19 g/t AuEq) over 12m; and hole BSS-23-018 with 0.16 g/t Au and 4 g/t Ag (0.21 g/t AuEq) over 9m, plus 0.08 g/t Au and 39 g/t Ag (0.53 g/t AuEq) over 93m, including 0.08 g/t Au and 84 g/t Ag (1.07 g/t AuEq) over 7.5m, plus 0.09 g/t Au and 59 g/t Ag (0.79 g/t AuEq) over 15m.
Silver Tiger Metals Inc., announced results from its ongoing drill program at its El Tigre project in Sonora. Highlights of the ongoing drilling program include hole ET-23-457 in the Sulphide Zone with 0.11 g/t Au, 297 g/t Ag, 0.28% Cu, 1.4% Pb, and 2.2% Zn (439 g/t AgEq) over 38.7m, including 0.17 g/t Au, 693 g/t Ag, 0.6% Cu, 3% Pb, and 4.6% Zn (987 g/t AgEq) over 15.8m, including 0.15 g/t Au, 1,100 g/t Ag, 0.87% Cu, 5.1% Pb, and 8% Zn (1,581 g/t AgEq) over 6.3m, including 0.13 g/t Au, 1,246 g/t Ag, 1% Cu, 6.4% Pb, and 13.4% Zn (1,949 g/t AgEq) over 3.4m, including 0.15 g/t Au, 1,943 g/t Ag, 1.58% Cu, 7.3% Pb, and 10.9% Zn (2,642 g/t AgEq) over 0.6m. “This hole added an additional 100 metres of down dip extent to east from Hole 428 to 457 and what it was thought was a thin zone of a little over a meter went to almost 39 meters of high grade mineralization. Step out drilling now continues south”.
Capstone Copper Corp., reported Mineral Reserves and Mineral Resources for its Cozamin property in Zacatecas as at January 1, 2023. The company announced Probable Mineral Reserves of 10.2M tonnes with grades of 1.6% Cu, 43 g/t Ag, 0.5% Zn, and 0.3% Pb. It also presented Measured + Indicated Resources of 19.7M tonnes with grades of 1.58% Cu, 47 g/t Ag, 1.1% Zn, and 0.4% Pb, and Inferred Resources of 12.3M tonnes with grades of 0.72% Cu, 38 g/t Ag, 2% Zn, and 0.8% Pb. (Mineral Reserve is reported inclusive of Mineral Resource).
GR Silver Mining Ltd., filed a NI 43-101 technical report to provide an updated resource estimate for its Plomosas project in Sinaloa as of March 15, 2023. The company reported Indicated Resources of 15M tonnes with grades of 117 g/t Ag, 0.18 g/t Au, 0.4% Pb, 0.6% Zn, and 0.03% Cu (179 g/t AgEq) for a total of 55M Oz Ag, 84.5K Oz Au, 143.4M Lb Pb, 201-6M Lb Zn, and 8.96M Lb Cu (85M Oz AgEq) and Inferred Resources of 9M tonnes with grades of 78 g/t Ag, 0.38 g/t Au, 0.7% Pb, 1% Zn, and 0.03% Cu (171 g/T AgEq) for a total of 22M Oz Ag, 108.2K Oz Au, 143.4M Lb Pb, 203.8M Lb Zn, and 6.7M Lb Cu (49M Oz AgEq).
GoGold Resources Inc., released additional results from its ongoing drilling campaign at Eagle Area within its Los Ricos South project in Jalisco. Drilling highlights include hole LRGAG-22-162 with 6.07 g/t Au and 1,064 g/t Ag (20.26 g/t AuEq or 1,519 g/t AgEq) over 31m, including 19.38 g/t Au and 3,922 g/t Ag (71.67 g/t AuEq or 5,375 g/t AgEq) over 8.1m, including 144 g/t Au and 36,319 g/t Ag (628.25 g/t AuEq or 47,119 g/t AgEq) over 0.7m; hole LRGAG-22-147 with 1.06 g/t Au and 41 g/t Ag (1.63 g/t AuEq or 122 g/t AgEq) over 46.6m, including 3.24 g/t Au and 76 g/t Ag (4.25 g/t AuEq or 319 g/t AgEq) over 13.4m, including 24.3 g/t Au and 45 g/t Ag (24.9 g/t AuEq or 1,867 g/t AgEq) over 0.8m; hole LRGAG-22-150 with 6.96 g/t Au and 65 g/t Ag (7.83 g/t AuEq or 587 g/t AgEq) over 11.3m, including 12.02 g/t Au and 100 g/t Ag (13.36 g/t AuEq or 1,002 g/t AgEq) over 6.3m, including 32.1 g/t Au and 157 g/t Ag (34.19 g/t AuEq or 2,564 g/t AgEq) over 1.1m; hole LRGAG-22-158 with 2.19 g/t Au and 138 g/t Ag (4.03 g/t AuEq or 302 g/t AgEq) over 24.6m, including 3.87 g/t Au and 340 g/t Ag (8.41 g/t AuEq or 631 g/t AgQ) over 8.8m, including 13.06 g/t Au and 2,660 g/t Ag (48.52 g/t AuEq or 3,639 g/t AgEq) over 0.8m; and hole LRGAG-22-161 with 2.51 g/t Au and 339 g/t Ag (7.03 g/t AuEq or 527 g/t AgEq) over 33m, including 5.16 g/t Au and 945 g/t Ag (17.76 g/t AuEq or 1,332 g/t AgEq) over 9.6m, including 19.58 g/t Au and 3,665 g/t Ag (68.46 g/t AuEq or 5,134 g/t AgEq) over 1.3m. GoGold continues to work toward an upcoming updated Los Ricos South Mineral Resource and Preliminary Economic Assessment, which is expected to be completed by the end of June, 2023.
Oroco Resource Corp., presented a Mineral Resource Estimate as of April 21, 2023 for its Santo Tomas project in Sinaloa. The company reported Indicated Resources of 487.3M tonnes with grades of 0.32% Cu, 0.009% Mo, 0.03 g/t Au, and 2 g/t Ag (0.36% CuEq) for a total of 3.4 B Lb Cu, 91.9M Lb Mo, 392.8K Oz Au, and 32.7M Oz Ag (3.86 B Lb CuEq), and Inferred Resources of 599.9M tonnes with grades of 0.32% Cu, 0.007% Mo, 0.03 g/t Au, and 2 g/t Ag (0.36% CuEq) for a total of 4.17 B Lb Cu, 95.6M Lb Mo, 500.6K Oz Au, and 38.5M Oz Ag (4.69 B Lb CuEq). Oroco believes Santo Tomas has a substantial resource that is exposed at or near surface and has robust potential to support a large, low-cost open-pit mining operation. “The MRE confirms the high potential of the project, which remains open to the north and south, with clear potential for further expansion of the resource and further conversion of MRE Inferred resources to an Indicated resource classification”.
Prime Mining Corp., announced an updated Mineral Resource Estimate for its Los Reyes property in Sinaloa. The company reported in the Mill Category a total of 16.6M tonnes of Indicated Resources with grades of 1.66 g/t Au and 60 g/t Ag (2.44 g/t AuEq) for a total of 888K Oz Au and 32.18M Oz Ag (1.3M Oz AuEq) contained, and Inferred Resources of 10.8M tonnes of 1.18 g/t Au and 47 g/t Ag (1.79 g(/t AuEq) for a total of 411K Oz Au and 16.39M Oz Ag (623K Oz AuEq) contained. In the Heap Leach Category Prime reported a total of 10.5M tonnes of Inferred Resources with grades of 0.37 g/t Au and 9 g/t Ag (0.49 g/t AuEq) for a total of 125K Oz Au and 3.08M Oz Ag (165K Oz AuEq), and Inferred Resources of 7.3M tones of 0.37 g/t Au and 8 g/t Ag (0.47 g/t AuEq) for a total of 86K Oz Au and 1.9M Oz Ag (111K Oz AuEq). Indicated Resources (Mill + Heap Leach) are 27.2M tonnes of 1.16 g/t Au and 40 g/t Ag (1.68 g/t AuEq) for a total of 1.01M Oz Au and 35.5M Oz Ag (1.47M Oz AuEq) and Inferred Resources (Mill + Heap Leach) of 18.1M tonnes of 0.85 g/t Au and 31 g/t Ag (1.26 g/t AuEq) for a total of 497K Oz Au and 18.3M Oz Ag (734K Oz AuEq).
Pan American Silver Corp., released results of eighth holes drilled at La Colorada Skarn project in Zacatecas. Drilling highlights include hole D-96-10-22 with 391 g/t Ag, 0.13% Cu, 10.8% Pb, and 8.5% Zn over 64.3m, including 914 g/t Ag, 0.19% Cu, 25.2% Pb, and 16.7% Zn over 23.25m, plus 154 g/t Ag, 0.03% Cu, 2.2% Pb, and 0.9% Zn over 22.75m, plus 27 g/t Ag, 0.23% Cu, 2.5% Pb, and 5% Zn over 13.3m, plus 37 g(/t Ag, 0.14% Cu, 1.1% Pb, and 6.4% Zn over 135.7m; hole D-96-12-23 with 233 g/t Ag, 0.1% Cu, 6.6% Pb, and 7.3% Zn over 109.55m, including 487 g/t Ag, 0.15% Cu, 15.5% Pb, and 10.1% Zn over 44.7m, plus 54 g/t Ag, 0.03% Cu, 1.3% Pb, and 2.6% Zn over 18m; hole D-96-09-22 with 106 g/t Ag, 0.03% Cu, 1.3% Pb, and 2.6% Zn over 5m, plus 123 g/t Ag, 0.11% Cu, 3.5%Pb, and 8.6% Zn over 21.2m, plus 162 g/t Ag, 0.05% Cu, 3.5% Pb, and 3.5% Zn over 26.95m, plus 98 g/t Ag, 0.07% Cu, 0.8% Pb, and 4% Zn over 72.6m; hole D-98-11-22 with 165 g/t Ag, 0.12% Cu, 4.4% Pb, and 9.3% Zn over 17.05m, plus 134 g/t Ag, 0.05% Cu, 5.3% Pb, and 6.9% Zn over 6.4m, plus 56 g/t Ag, 0.05% Cu, 1.6% Pb, and 4.2% Zn over 9.90m, plus 152 g/t Ag, 0.02% Cu, 0.9% Pb, and 2.8% Zn over 20.5m, plus 79 g/t Ag, 0.06% Cu, 0.6% Pb, and 1.9% Zn over 14.55m; hole U-138-22 with 122 g/t Ag, 0.08% Cu, 2.7% Pb, and 5.3% Zn over 4.05m, plus 193 g/t Ag, 0.15% Cu, 10.8% Pb, and 9.3% Zn over 71.35m, including 231 g/t Ag, 0.17% Cu, 13-1% Pb, and 11% Zn over 57.95m, plus 49 g/t Ag, 0.14% Cu, 0.4% Pb, and 1.1% Zn over 40.3m; hole U-112-22 with 80 g/t Ag, 0.03% Cu, 1.3% Pb, and 1.2% Zn over 15.25m, plus 141 g/t Ag, 0.06% Cu, 5.8% Pb, and 5.5% Zn over 53.15m, including 243 g/t Ag, 0.08% Cu, 11.3% Pb, and 8.3% Zn over 15.15m, plus 66 g/t Ag, 0.07% Cu, 0.6% Pb, and 3.5% Zn over 14.7m, plus 25 g/t Ag, 0.08% Cu, 1.7% Pb, and 3.8% Zn over 32.95m; and hole D-93-06-23 with 304 g/t Ag, 0.17% Cu, 4.7% Pb, and 2.5% Zn over 21.45m, plus 17 g/t Ag, 0.07% Cu, 1.7% Pb, and 3.8% Zn over 5.05m, plus 40 g/t Ag, 0.02% Cu, 2.7% Pb, and 3.5% Zn over 31.2m, plus 27g/t Ag, 0.1% Cu, 2.9% Pb, and 4.7% Zn over 143.3m, plus 22 g/t Ag, 0.06% Cu, 3.7% Pb, and 5.9% Zn over 5.1m, plus 49 g/t Ag, 0.25% Cu, 1.5% Pb, and 4.4% Zn over 74.2m.
Minera Alamos Inc., announced positive results of an independent Preliminary Economic Assessment for its Cerro de Oro project in Zacatecas. In April, 2023 it also completed the documentation necessary to formally proceed with the Cerro de Oro permitting process. “Discussions continue with a number of interested lending partners to provide the modest capital funding requirements for the development of the Cerro de Oro mine”.
Torex Gold Resources Inc., provided the second quarterly update on its Media Luna project in Guerrero. The Media Luna project continues to track overall schedule and budget. “At quarter-end, the project was 24% complete across engineering, procurement, underground development, and surface construction. With no major changes to the project execution plan, first concentrate production remains on track for late 2024, with commercial production still anticipated in early 2025. At quarter end, 34% of upfront project expenditures had been committed, including 22% incurred. The level of spending on the project is expected to increase throughout the remainder of the year, with total project expenditures of USD $390M to USD $440M guided in 2023.
ON DEALS AND CORPORATE ISSUES
Bear Creek Mining Corporation announced its CEO succession after the previous one decided to retire from such position. This appointment will be effective on June 5, 2023 (Mercedes mine, Sonora).
GR Silver Mining Ltd., announced the retirement of its CFO and the appointment of its replacement effective immediately (Plomosas project, Sinaloa).
Tarachi Gold Corp., signed a definitive agreement dated May 2, 2023 with Compañía Minera de Atocha S.A. de C.V., for the sale of Magistral Tailings project in Durango. The company expects to receive USD $5.7M as follow: USD $2.5M on or before closing; USD $0.5 of the USD $1M currently held in Canadian escrow account will be released to Tarachi on or before closing; The remaining USD $500K in the escrow account will be released to Tarachi when Atocha concludes negotiations with the Ejido Magistral, or after 12 months, whichever occurs first; USD $500K will be paid to Tarachi six months from closing, less any contingency costs, if any, that arise after closing that were incurred by Tarachi but not identified during due diligence. US$500K will be paid to Tarachi when 50% of the tailings located on the Magistral Project have been mined, sold and/or processed or after the first complete calendar year of operation at the Magistral Project, whichever occurs first; USD $500K will be paid to Tarachi when 100% of the Magistral Tailings have been mined, sold and/or processed or after the second complete calendar year of operation at the Magistral Project, whichever occurs first; the amount of value-added tax currently owing as that tax benefit is realized by Atocha during operations and product sales from the Magistral Project will be paid to Tarachi, estimated to total approximately USD $650K. Tarachi anticipates the tax benefit will be realized by Atocha and paid to Tarachi within the first year of commercial operations at the Magistral Project.
ON SOCIAL RESPONSIBILITY
Almaden Minerals Ltd., completed a social impact assessment (SIA) relating to its Ixtaca project in Puebla, and underlying mineral claim area, and the completion of a human rights impact assessment (HRIA) that examines the potential impacts that could be caused if the Ixtaca project is developed in a manner consistent with the Ixtaca Feasibility Study. “The SIA concluded that there were no elements identified that would justify the cancellation of the concessions so long as the necessary social management measures were in place to avoid, mitigate or compensate for the potential negative impacts and amplify the positive ones. The HRIA represents a much more significant and holistic study than the SIA, as it aims to predict, identify, characterize, and assess the potential positive and negative impacts that the Ixtaca project could have during its lifespan on the human rights of both indigenous and non-indigenous communities located within its areas of influence and on other identified project stakeholders. In the event potential impacts are identified, the HRIA proposes strategies to amplify the positive and mitigate or compensate for the negative”.
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 veining hosted in a hydrothermally-altered intrusive in a project in Sonora, Mexico. Photo by Miguel A Heredia.
During the 17th week of the year (April 24th to April 30th, 2023), 17 companies working in Mexico released news on their work. Five companies informed on exploration on their properties, six companies informed on Q1 2023 or full-year 2023 production/financial results. Two companies announced the closing and opening of financing rounds. A company corrected assay information on a previously issued drill intercept; one other provided an update on its intention to sue the Mexican government under a NAFTA legacy claim regarding the lack of action to terminate an illegal blockade. ON MEXICO ISSUES, Canada’s ministry of International Commerce, Mary Ng, expressed the preoccupation of foreign investors on the incoming changes to the Mining Law. The Mining Law was passed on Saturday morning by the Senate, and is set to return discretionary powers to the State on mining concessions. ON EXPLORATION, in Sonora, Prismo Metals released assays from surface sampling at its Los Pavitos property; Regency Silver released good results from deep drilling at its Dios Padre project; Colibri Resource released results from drilling at Evelyn project. In Zacatecas, Radius Gold updated on exploration work at the Tropico property. ON MINING, Sierra Metals, Mag Silver, Santacruz Silver, Alamos Gold, Pan American Silver and Agnico Eagle released Q1 2023 production reports. ON FINANCING, Silver Viper closed a private placement for $3.3 M; Radius Gold is to raise $1.75 M. ON RESOURCES AND DEVELOPMENT, Oroco Resource corrected assay results from one hole, previously issued last week, from its Santo Tomás project in Sinaloa. ON DEALS AND CORPORATE ISSUES, Guanajuato Silver informed on managerial changes. Silver Bull is to sue the Mexican government if a deal is not reached on an incoming meeting regarding the lack of action by the government to terminate an illegal blockade on its Sierra Mojada project in Coahuila. Prismo Metals and Vizsla Silver formalized the joint technical committee to oversee exploration of the Panuco district in Sinaloa, with Peter Megaw, Craig Gibson and Jesus Velador as members. ON SOCIAL RESPONSIBILITY, no relevant news.
ON MEXICO ISSUES
The ministry of International Commerce of Canada, Mary Ng, expressed to Raquel Buenrostro, head of the Economy Secretariat (Secretaría de Economía) the preoccupation of foreign investors on the changes to the Mining Law, and the negative implications on North America supply chains.
The Senate Commission on Regional Development and Legislative Studies approved without changes, by the ruling party coalition senators of Morena, PT, PVEM and PES parties, the reforms to the Mining Law, National Waters Law, Ecologic Equilibrium Law, Environment Law, and the General Law for prevention and Comprehensive Treatment of Tailings in Matter of Mining and Water Concessions. Among the changes is the reduction of mining concessions validity from 100 to 80 years (under certain conditions), the instauration of an auction system by the government for mining concessions, establishing that the concession title is to be issued AFTER the environmental, labor, energy, social and any other federal permit needed have been received (Note by Editor. – Speaking of putting the cart before the horse).
On the changes to the Mining Law. (Note by editor) The reform to the Mining Law is directed to regain quasi absolute control of mining concessions by the government, establishing rules under which the concessions can be revoked on grounds of indigenous population, community issues, environmental issues and water scarcity, all on which the government plays the role of judge and party. This is part of a broader drive by the president to concentrate power in himself and his government coalition before the 2024 presidential elections.
ON EXPLORATION
Prismo Metals Inc. released assays results from 354 surface samples on its 5,289 hectare Los Pavitos project in Sonora. Results from Las Auras are up to 0.5 m @ 14.35 gpt Au, 1.0 m @ 12.25 gpt Au, while at Santa Cruz assays are up to 0.5 m @ 5.48 gpt Au, 269 gpt Ag; 1.5 m @ 1.0 gpt Au, 543 gpt Ag. “Las Auras is characterized by northwest trending veins and shears hosted in intrusions, while Santa Cruz is dominated by northeast trending veins that follow sedimentary bedding”. Drilling is expected to begin in Q2 2023.
Regency Silver Corp. released results from two follow-up holes from the last drilling round discovery at the Dios Padre project in Sonora. Seven holes have been completed for a total of 4,251 m, of which six have intersected the targeted “pyrite +/- specularite +/- chalcopyrite supported breccia zone that hosts Au-Cu mineralization”. Highlighted core length intercepts comprise 18.15 m @ 0.24 gpt Au; 8.3 m @ 0.62 gpt Au; 19.25 m @ 0.19 gpt Au; 16.2 m @ 0.39 gpt Au; 20.65 m @ 0.51 gpt Au (including 9.2 m @ 1.06 gpt Au); 35.9 m @ 5.51 gpt Au; 128.35 m @ 0.84 gpt Au (including 21.3 m @ 0.54 gpt Au and 57.95 m @ 1.49 gpt Au), and 95.5 m @ 0.2% Cu; 34.35 m @ 0.42% Cu (including 12.05 m @ 0.98% Cu); 25.4 m @ 0.43% Cu; 23.9 m @ 0.19% Cu; and 15.1 m @ 19.2 gpt Ag. “Geophysical Induced-Polarity (IP) survey confirms robust anomaly connecting near surface response from Dios Padre silver mine down-dip to current Au-Cu mineralization being targeted in ongoing drill program, outlining a ~1000m long by ~900 m wide zone of strongly chargeable rock”.
Prismo Metals Inc. signed a contract for a 2,500 m drilling program at its Palos Verdes project in the Panuco District in Sinaloa. “The drill program is designed to test the 65% of the strike length of the Palos Verdes vein that has not yet been drilled. It is believed that potential for a large ore shoot is present similar to the drilling accomplished by Vizsla Silver on their adjacent land package is present on Prismo’s concession. Previous drilling has intersected high grade mineralization with the best intercept of 2,336 g/t Ag and 8.42 g/t Au over a true width estimated at 0.8 meters within a larger mineralized interval with 1,098 g/t Ag and 3.75 g/t Au over a true width of 2.3 meters”.
Radius Gold Inc. provided an update on the Tropico target in Zacatecas. “Radius geologists identified an elliptical zone of intensely silicified hydrothermal breccias approximately 450 m x 250 m. Several of the outcrops and float blocks are composed of chalcedonic and opaline sinter. The Tropico breccia is hosted within finely bedded siltstones and dirty limestones …”. Radius has an access agreement with the local community and land owners, has completed the geological mapping, contracted CSAMAT and IP geophysical surveys and is preparing for drilling upon receipt of the permits.
Colibri Resource Corp. provided assays results from 1,062 m of core drilling in three holes and 1,205 m of reverse circulation drilling in five holes at its Evelyn project in Sonora. Highlighted core length intervals comprise 34.70 m @ 0.28 gpt Au (including 5.65 m @ 1.00 gpt Au); 4.50 m @ 0.34 gpt Au, 4.05 m @ 1.52 gpt Au (including 0.75 m @ 7.54 gpt Au). Highlighted RC intervals comprise 29.00 m @ 0.47 gpt Au (including 2.00 m @ 3.35 gpt Au and 6.00 m @ 0.97 gpt Au); 15.00 m @ 0.18 gpt Au; 20.00 m @ 0.11 gpt Au; 2.00 m @ 1.85 gpt Au; 10.00 m @ 0.47 gpt Au (including 2.0 m @ 1.10 gpt Au and 2.0 m @ 1.04 gpt Au). Colibri also released results from a “short hole” drilling program designed to explore under extensive alluvial cover, completing 1,548 m in 130 vertical holes at 25 m centers. Of the 954 samples (1 m width) recovered, 20% returned greater than 0.05 gpt Au, 11% greater than 0.1 gpt Au and 4 samples returned more than 0.7 gpt Au, peaking at 3.31 gpt Au.
ON MINING
Sierra Metals Inc. announced first quarter 2023 production results, including figures from its operations in Mexico. At Bolivar, in Chihuahua, 299 K tonnes were processed at a rate of 3,417 tonnes per day (tpd), grading 0.87% Cu, 17.4 gpt Ag, 0.45 gpt Au, recovering 94.2% Cu, 84% Ag, 69.5% Au, to produce 5.39 M Lb Cu, 140 K Oz Ag, 3,037 Oz Au (7.6 M Lb CuEq). At Cusi (a non-core asset), in Chihuahua, 59.1 K tonnes were processed at a daily rate of 676 tpd, grading 141.8 gpt Ag, 0.13 gpt Au, 0.24% Pb, recovering 86.3% Ag, 46.6% Au, 88.7% Pb, to produce 343 K Oz Ag, 119 Oz Au, 282 K Lb Pb.
Mag Silver Corp. reported production from the Juanicipio project (56% Fresnillo PLC– 44% Mag Silver) for Q1 2023. During the period 222 K tonnes grading 363 gpt Ag were processed to produce 2.25 M Oz Ag, 6,047 Oz Au. About 30% of that ore was processed at the Juanicipio beneficiation plant and the focus now is to attain the 4,000 tpd nameplate capacity on a sustained basis and achieve commercial production.
Santacruz Silver Mining Ltd. reported full year 2022 production, with figures on its Mexican operations. At Zimapan, in Hidalgo, 215 K tonnes were milled averaging 71 gpt Ag, 2.19% Zn, 0.63% Pb, 0.40% Cu, recovering 61.5% Ag to produce 301.2 K Oz Ag, 3,098 tonnes Cu, 1,036 tonnes Pb, 569 tonnes Cu (903.1 K Oz AgEq). The company had a consolidated production of 4.77 Moz AgEq. “Mine development was focused on opening higher grade stoping areas in Carrizal mine along with high productivity areas in Monte mine. Exploration efforts have been refocused to expand current mine resources”.
Alamos Gold Inc. reported its financial results for Q1 2023, including figures from its operations in Mexico. At the Mulatos district in Sonora 50,500 Oz Au were produced at cash cost $839 per Oz Au and mine-site all-in sustaining cost of $914 per Oz Au. At La Yaqui Grande mine, 1.0 M tonnes of ore were mined, 5.83 M tonnes of waste moved (waste to ore ratio of 5.64), with 1.02 M tonnes stacked averaging 1.55 gpt Au, containing 50,992 Oz Au, crushed at 11,329 tpd, with a recovery of 75% Au. At the Mulatos mine, 1.0 M tonnes of ore were mined, 0.61 M tonnes of waste moved (waste to ore ratio of 0.61), with 1.23 M tonnes stacked averaging 0.92 gpt Au, containing 36,541 Oz Au, crushed at 13,700 tpd, with a recovery of 33%. For 2023 the company expects to produce between 175-185 K Oz Au at cash cost $900 – $950 per Oz Au.
Pan American Silver Corp. provided its guidance for year 2023 production and costs, including figures for its Mexican operations. At La Colorada, in Zacatecas, the company expects to produce 5.5 – 5.9 M Oz Ag, 3,000 Oz Au. At Dolores, in Chihuahua, production is estimated at 2.2 – 2.5 M Oz Ag, 98,000 – 107,000 Oz Au.
Agnico Eagle Mines Ltd. reported first quarter 2023 results, including figures from its Mexican operations. At Pinos Altos, in Chihuahua, 364 K tonnes were processed at a daily rate of 4,044 tonnes, averaging 2.16 gpt Au, to produce 24,134 Oz Au at cash cost 1,364 per Oz Au and total cash cost of $1,116 per Oz Au. At La India, in Sonora, 660 K tonnes were processed at a daily rate of 7,333 tonnes, averaging 0.68 gpt Au, to produce 16,321 Oz Au at production cost of $1,231 per Oz Au and total cash costs of $1,308 per Oz Au. At San Nicolás, in Zacatecas, the 50/50 joint venture with Teck Resources Ltd. was completed, and the completion of a feasibility study is planned for 2024.
ON FINANCING
Silver Viper Minerals Corp. closed the final tranche of its non brokered private placement for gross proceeds of $1.92 M. In total the company raised $3.3 M. Silver Viper is to pay $123.8 K in finder’s fees in connection with this offering, in addition to $40 K paid as finder’s fee on previous tranches. (La Virginia, Sonora).
Radius Gold Inc. is to proceed with a non-brokered private placement aiming to rise a minimum of $1.75 M (Amalia, Chihuahua).
ON RESOURCES AND DEVELOPMENT
Oroco Resources Corp. announced a correction to the assay results from one drillhole released last week from its Santo Tomás project in Sinaloa. The corrected results from hole N044 went from 352.5 m grading 0.83% Cu, 0.011% Mo, 0.072 gpt Au, 6.26 gpt Ag (0.93% CuEq), to 352.5 m grading 0.42% Cu, 0.006% Mo, 0.036 gpt Au, 3.13 gpt Ag (0.46% CuEq), roughly half the previously reported values.
ON DEALS AND CORPORATE ISSUES
Guanajuato Silver Company Ltd. announced Hernan Dorado Smith will take the position of Chief Strategy Officer and Mario Valdez has been promoted to Co-Chief Operating Officer, sharing the position of COO with Ramon Davila (El Cubo, Guanajuato).
Silver Bull Resources Inc. provided an update regarding its legacy North American Free Trade Agreement (NAFTA) claim against Mexico. The company seeks to recover economic damages resulting from the illegal blockade of its Sierra Mojada project in Coahuila since September 2019. The illegal blockade has been allowed by the government to continue, despite numerous demands and requests by the company. Silver Bull will be seeking to recover no less than US178 M in damages suffered as a result of Mexico’s breach of NAFTA obligations. A meeting with government officials is scheduled on May 30, 2023 to reach, if possible, an amicable solution. If a settlement is not reached, a request for arbitration will be filed on June 2, 2023 with the International Centre for Settlement of Investment Disputes.
Prismo Metals Inc. and Vizsla Silver Corp. formalized the establishment of a joint technical committee which will allow for the pursuit of district-scale exploration of the Panuco district in Sinaloa. The committee is to be comprised by Dr. Craig Gibson, President and CEO of Prismo, Jesus Velador, Vice President Exploration of Vizsla and Dr. Peter Megaw, Chief Operating Officer of Mag Silver Corp.
ON SOCIAL RESPONSIBILITY
No Relevant News.
On the image below: Sheeted quartz veining on a coarse-grained intrusive rock in the Sonoran Desert. Picture by Jorge Cirett.
During the 14th week of the year (April 3rd to April 9th, 2023), at least 16 press releases were announced by companies working in Mexico, with five informing on exploration results, four reporting resources and developments of their properties, four disclosing deals and corporate issues, one communicating production and financial results, one commenting on Mexican Issues, and one announcing financing issues. ON MEXICO ISSUES, Silver Tiger was the only mining company reporting drilling intercepts in Mexico on the first week of April, 2023. ON EXPLORATION, In Sonora, Colibri reported assays results of sampling completed at its recently acquired El Plomo project, and Prismo released assay for 277 samples collected at its Los Pavitos project. In Chihuahua, Kingsmen expanded its land position at its Las Coloradas project in the southeast part of the Parral mining district. In Coahuila, Monumental reported assays results and proposed drill targets from its Jemi rare earth elements project. Minaurum provided an update on its corporate strategy to develop and acquire a pipeline of potential Tier One precious metals projects. ON MINING, GoGold reported Q1, 2023 production results from its Parral Tailings project in Chihuahua. ON FINANCING, Golden Minerals announced that it is selling gold-rich pyrite concentrates from its Velardeña properties on improved terms to a buyer in Manzanillo. ON RESOURCES AND DEVELOPMENT, Heliostar filed a technical report on an update of the 2017 pre feasibility study on the Ana Paula deposit in Guerrero, and announced re-scoping plans for its gold deposit. Avino reported metallurgical results from the testwork program on its oxide tailings project at its Avino property in Durango. Silver Tigre reported drill results from its El Tigre project in Sonora. ON DEALS AND CORPORATE ISSUES, Impact Silver closed the acquisition of the Plomosas mine in Chihuahua. Excellon announced the reversal of a USD $22M liability from its March 31, 2023 consolidated balance sheet (La Negra Mine, Queretaro). Teck and Agnico Eagle completed the San Nicolas project joint venture agreement. Silver Viper re-negotiated terms of the Rubi-Esperanza option agreement. ON SOCIAL RESPONSIBILITY, No relevant news.
ON MEXICO ISSUE
Silver Tiger Metals Inc., was the only mining company reporting drilling intercepts in Mexico on the first week of April, 2023. Details are shown in the table below:
ON EXPLORATION
Colibri Resource Corporation reported assay results of sampling completed at its recently acquired El Plomo project in Sonora. Twenty-five grab samples returned values > 1.0 g/t Au, including 6 with values > 5 g/t Au. “A total of 62 grab samples taken by Colibri returned Au assay values > 0.1 g/t Au. Channel sample values range from 8.03 g/t Au to 0.089 g/t Au over sample lengths (true widths) of 1.7m to 0.1 m. The occurrence and general distribution of higher-grade samples (> 1.0 g/t Au) evident in the historical work was validated with the due diligence sampling”.
Prismo Metals Inc., released assay for 277 samples taken at its Los Pavitos project in Sonora, from which 175 samples collected at the Santa Cruz area returned 0.5 g/t Au or more (several with values above 5 g/t Au over widths of 0.20 to 1m, and the best returned 20.3 g/t Au over 0.6m), and seven samples returned over 100 g/t Ag. Pathfinder elements As and Bi are also generally strongly anomalous. “At least six other target areas have been identified for additional detailed work to develop drilling targets for later this year. Drilling permits are in process and drilling is expected to begin in Q2 2023”.
Kingsmen Resources Ltd., expanded its land position at its Las Coloradas project in the southeast part of the Parral mining district in Chihuahua, with the acquisition of a new claim. The new 342 hectares claim is adjacent to its Las Coloradas project and covers prospective geology and structural and geophysical targets.
Monumental Minerals Corp., reported assay results and proposed drill targets from its flagship Jemi rare earth elements project in Coahuila. The company has completed four months of exploration consisting of detailed geological mapping, regional stream sediment sampling, ground radiometric geophysical surveys, and lithogeochemical sampling. “A total of 296 assays have been received for surface rock chip samples from Jemi Dykes and Veladora North. Samples that are both peralkaline and anomalous in REEs, Ta, and Nb (116 samples) define four discreet priority areas within Monumental’s mineral concessions”. “Three-dimensional modeling of airborne magnetic data indicates that a larger intrusive body and potential source for the mineralized dykes may lie at a shallow depth (less than 300 m) beneath the dykes. Based on these results, six preliminary drill targets have been chosen and a drilling program is anticipated to commence in June 2023”.
Minaurum Gold Inc., provided an update on its corporate strategy to develop and acquire a pipeline of potential Tier One precious metals projects, through a portfolio containing silver projects totaling 37,928 hectares; gold projects totaling 25,933 hectares; and copper projects totaling 12,856 hectares. “Key initiatives for each flagship project include: underground rehabilitation to be followed by mapping, sampling and underground drilling at its Alamos Silver project in Sonora. Results will serve as a basis for an initial resource estimate; at Santa Marta Copper-Gold Project in Oaxaca, an initial drill program has been designed and is awaiting a drill permit from SEMARNAT, the Mexican federal environmental permitting agency; and at Aurifero Gold Project in Sonora, a drill program to test deep targets has been designed and drill permits have been applied for, actively working to further consolidate the district. Minaurum expects to advance the remainder of its projects through strategic joint ventures in exchange for a combination of royalties, carried interests, and payments such as it received in option agreements with Fortuna Silver Corp. and Infinitum Copper Corp”.
ON MINING
GoGold Resources Inc., reported Q1, 2023 production results from its Parral Tailings project in Chihuahua. The company produced 173.7K Oz Ag, 2,106 Oz Au, and 320.3K Lb Cu (400.1K Oz AgEq).
ON FINANCING
Golden Minerals Company announced that it is selling gold-rich pyrite concentrates from its Velardeña properties on improved terms to a buyer in Manzanillo. The Company had previously planned to construct a BIOX facility at Velardeña in order to recover the gold in the pyrite concentrate. The Company is now evaluating the economics of a restart of the Velardeña operation without the need for major capital expenditures for the BIOX facility and ancillary equipment. Golden made its first shipment of 142 tonnes of previously produced and stockpiled gold-rich pyrite concentrate under the new terms last week and is currently processing 3,000 tonnes of previously mined and stockpiled mineralized material from the Santa Juana mine for future shipments.
ON RESOURCES AND DEVELOPMENT
Heliostar Metals Limited filed a technical report on an update of the 2017 pre feasibility study on the Ana Paula deposit in Guerrero, and announced re-scoping plans for its gold deposit. The Ana Paula deposit has a proven and probable mineral reserve of 14.1M tonnes with grades of 2.38 g/t Au and 6 g/t Ag for a total of 1.08M Oz Au and 2.5M Oz Ag contained. Ana Paula deposit is permitted for open-pit mining. The after-tax NPV (5% discount rate) of the Ana Paula Project is estimated assuming long-term metal prices of $1,600/Oz Au and $20/Oz Ag. The after-tax NPV (5%) of the Ana Paula Project is estimated at $278.6M with a projected after-tax IRR of 30.5%. “The Ana Paula re-scoping program has four key areas of technical study: engineering, metallurgical, resource modelling, and geotechnical. These studies are designed to evaluate Ana Paula as a high-grade underground mine with a simplified and de-risked milling flow sheet”.
Avino Silver & Gold Mines Ltd., reported metallurgical results from the testwork program on its oxide tailings project at its Avino property in Durango. The tailings project hosts gold and silver from past producing historic operations with a 5.7 M tonnes of measured and indicated resource grading 95 g/t of silver equivalent. The project consists of three types of tailings that are categorized by grade as well as identified in three stratigraphic layers within the deposit based on the time period when they were processed. They are, Ancient Oxides, Recent Oxides and Sulphides, and each type was sampled and tested separately. Metallurgical recoveries for the Ancient Oxides are 89.5% for Au and 90.4% for Ag; for the Recent Oxides are 85.8% for Au and 83.4% for Ag; and for the Sulphides are 82.8% for Au and 76.1% for Ag.
Silver Tigre Metals Inc., reported drill results from its El Tigre project in Sonora. Drilling highlights include hole ET-23-445 collared at the Sulphide Zone with 0.24 g/t Au, 130 g/t Ag, 0.16% Cu, 0.8% Pb, and 2% Zn (247 g/t AgEq) over 3.1im including 0.17 g/t Au, 305 g/t Ag, 0.31% Cu, 1.7% Pb, and 4.8% Zn (547 g/t AgEq) over 0.8m, plus 0.24 g/t Au, 115 g/t Ag, 0.58% Cu, 2% Pb, and 3.9% Zn (365 g/t AgEq) over 9.6m, including 0.59 g/t Au, 442 g/t Ag, 2.14% Cu, 7.6% Pb, and 12% Zn (1,270 g/t AgEq) over 1.6m, including 0.52 g/t Au, 857 g/t Ag, 1.74% Cu, 6.4% Pb, and 14.6% Zn (1,700 g/t AgEq) over 0.5m; and hole ET-23-448 collared at El Tigre Vein area, with 0.03 g/t Au, 485 g/t Ag, 0.33% Cu, 0.01% Pb, and 0.08% Zn (522 g/t AgEq) over 4.9m, including 0.04 g/t Au, 1,194 g/t Ag, 0.84% Cu, 0.03% Pb, and 0.2% Zn (1,285 g/t AgEq) over 1m, including 0.05 g/t Au, 1,560 g/t Ag, 1.14% Cu, 0.04% Pb, and 0.3% Zn (1,684 g/t AgEq) over 0.5m.
ON DEALS AND CORPORATE ISSUES
Impact Silver Corp., completed the share purchase and sale agreement with Consolidated Zinc Limited to close the acquisition of the Plomosas mine in Chihuahua. Terms of the agreement include a total purchase price of USD $6M consisting of USD $3M in cash and the balance in the form of Impact shares (a total of 11,441,647 shares will be issued), and a 12% net profit interest royalty on production from the Plomosas project to Consolidated. “Contractual restrictions have been applied to 75% of the share transfer component such that IMPACT Shares will be released from restriction in three equal tranches of 25% of the total number of shares issued to CZL, every 6 months, over 18 months from closing. 25% of the IMPACT Shares will be immediately held by CZL (subject to a statutory 4- month hold period from the date of issuance of the IMPACT Shares)”.
Excellon Resources Inc., announced the reversal of a USD $22M liability from its March 31, 2023 consolidated balance sheet, relating to the previously disclosed judgment against one of the Company’s subsidiaries in Mexico (La Negra Mine, Queretaro).
Teck Resources Limited and Agnico Eagle Mines Limited completed the joint venture agreement to advance the permitting and development of the San Nicolas project in Zacatecas. Agnico Eagle, through a wholly-owned Mexican subsidiary, has agreed to subscribe for a 50% interest in Minas de San Nicolás, S.A.P.I. de C.V. for USD $580M. The joint venture partners are planning to submit an Environmental Impact Assessment and Permit application for San Nicolás in the first half of 2023 and are targeting completion of a feasibility study in early 2024.
Silver Viper Minerals Corp., re-negotiated terms of the Rubi-Esperanza option agreement. An addendum of the agreement was signed on April 4, 2023, outlining an overall reduction in this year’s cash payment, and now including the issuance of shares as partial compensation. “The revised agreement provides for the issuance of USD $1.5M in Silver Viper shares issued on signing, followed by a cash payment of USD $200K in June of 2023. In order to complete this agreement, there is a scheduled cash payment of USD $200K, along with the issuance of USD $775K in Silver Viper shares during June of 2024.
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, an onyx vein in a prospect in San Luis Potosi, Mexico. Photo by Miguel A Heredia.
During the 10th week of the year (March 6th to March 12nd, 2023), at least 9 press releases were announced by companies working in Mexico, and 4 news published by the media with five commenting on Mexican Issues, three informing on exploration results, two reporting resources and developments, two disclosing deals and corporate issues, and one discussing social issues. ON MEXICO ISSUES, Peñoles and Fresnillo plc recognized the role of women in mining, commemorating his legacy from the beginning of his participation in this sector. In Mexico, women in mining have access to salaries up to 30% higher than the national average. According to figures from the Mexican Social Security Institute (IMSS), more than 66,000 women work in the mining-metallurgical industry, which is equivalent to 16.3% of the total workforce. Proposals to modify the Mining Law lack support, say experts, since the industry complies with at least 4,000 legal obligations, before starting operations of a mining unit. GoGold and Torex reported the best drilling intercepts in Mexico on the second week of March, 2023. ON EXPLORATION, In Sonora, Aztec Minerals reported that it has commenced the 2023 exploration program at its Cervantes project. In Sinaloa, Prismo announced that it has received authorization for drilling its Palos Verdes project. In Oaxaca, Vortex Metals provided an update on the environmental works it has conducted at its flagship Riqueza Marina project. ON MINING, no relevant news. ON FINANCING, no relevant news. ON RESOURCES AND DEVELOPMENT, GoGold reported additional drilling results from Los Ricos South, within the Eagle and Main Deposits in Jalisco. Torex released results from the drilling program conducted at its Media Luna project in Guerrero. ON DEALS AND CORPORATE ISSUES, Guanajuato Silver announced that a new shareholder has acquired a significant equity position in the company (El Cubo, Valenciana, and San Ignacio Mines in Guanajuato). Bear Creek provided an update on the USD $25M payment to Equinox Gold for the Mercedes mine in Sonora. ON SOCIAL RESPONSIBILITY, Endeavour published its inaugural climate strategic report (Guanacevi mine, Durango).
ON MEXICO ISSUE
Servicios Industriales Peñoles S.A.B. de C.V., and Fresnillo plc recognized the role of women in mining, commemorating his legacy from the beginning of his participation in this sector. Both companies have maintained a strong gender agenda that offers equal opportunities to women and men, equal salaries that depend on the responsibilities of each employee, programs to prevent harassment and to reinforce female leadership.
In Mexico, women in mining have access to salaries up to 30% higher than the national average, with remunerations that exceed MXP $11K a month, above the MXP $5K and up to MXP $7K received by workers in the agricultural and construction sectors, textile employees, drivers and merchants, according to sector estimates. The mining industry has made progress on issues of diversity and inclusion, since in the last 13 years the participation of women has increased, going from 33,260 at the end of 2008 to 66,037 by 2022, according to data from Mining Chamber of Mexico (CAMIMEX).
According to figures from the Mexican Social Security Institute (IMSS), more than 66,000 women work in the mining-metallurgical industry, which is equivalent to 16.3% of the total workforce. The number of women who are entering careers in mining engineering, metallurgy and geology is increasing and therefore their presence in the productive field and in the management of the operation of mining units is increasing. Of the total number of women who participate in the industry, 10% hold directive positions and 14% hold management positions.
Proposals to modify the Mining Law lack support, say experts, since the industry complies with at least 4,000 legal obligations, before starting operations of a mining unit. The reform initiatives to the Mining Law that have been presented in the Congress of the Union lack support in the real circumstances of this industry or refer to issues that should be the subject of other legal regulations, as uncertainty for this activity. The experts explained that issues such as creating or increasing taxes and/or rights must be ruled out in the legislative drafts, since mining entrepreneurs pay, like any other taxpayer, the Income Tax, the Special Tax on Production and Services, in addition to they also pay mining rights and some local contributions, such as payroll and property taxes, as well as some of the so-called ecological taxes. They added that it is estimated that the tax burden of mining in Mexico is high, compared to other countries with mining activity. Mining is an industry misunderstood and unknown by many, even by those who promote changes to its legislation, for which they trusted that the voice of those who know and participate directly in the industry will be heard.
GoGold Resources Inc., and Torex Gold Resources Inc., reported the best drilling intercepts in Mexico on the second week of March, 2023. Details are shown in the table below:
ON EXPLORATION
Aztec Minerals Corp., reported that it has commenced the 2023 exploration program at its Cervantes project in Sonora. The plan of the company is to conduct a surface exploration program which will consist of road cut, reconnaissance outcrop, and soil sampling, Terraspec SWIR data collection, and geological mapping. It will comprise collecting over 1,300 geochemical samples, including 950 roads cut, 120 soils, and 250 outcrop chips.
Prismo Metals Inc., announced that it has received authorization for drilling its Palos Verdes project, located in the historic Panuco-Copala mining district in Sinaloa. The company plan is to complete a 2,500m drilling program to test the strike length of the Palos Verdes Vein that was not previously accessible until now.
Vortex Metals Inc., provided an update on the environmental works it has conducted at its flagship Riqueza Marina project in Oaxaca. Vortex has completed the environmental work activities and has interpreted and organized the information according to predetermined formats required for the Secretariat of Environment and Natural Resources (SEMARNAT). Additionally, the company is working closely with the community looking that a beneficial relationship is established and the general assembly confirms and seals the agreements.
ON MINING
No relevant news.
ON FINANCING
No relevant news.
ON RESOURCES AND DEVELOPMENT
GoGold Resources Inc., reported additional drilling results from Los Ricos South, within the Eagle and Main Deposits in Jalisco. Drilling highlights include hole LRGAG-22-117 on Eagle Deposit with 1.09 g/t Au and 133 g/t Ag (2.87 g/t AuEq or 215 g/t AgEq) over25m, including 1.96 g/t Au and 307 g/t Ag (6.06 g/t AuEq or 454 g/t AgEq) over 9m, including 8.08 g/t Au and 1,460 g/t Ag (27.75 g/t AuEq or 2,066 g/t AgEq) over 1m; hole LR-GAG-22-125 on Eagle Deposit with 2.14 g/t Au and 128 g/t Ag (3.84 g/t AuEq or 288 g/t AgEq) over 42.3m, including 9.66 g/t Au and 486 g/t Ag (16.13 g/t AuEq or 1,210 g/t AgEq) over 7.3m; including 15.35 g/t Au and 866 g/t Ag (26.89 g/t AuEq or 2,017 g/t AgEq) over 2.8m; and hole LRGG-22-232 on Main Deposit with 2.60 g/t Au and 61 g/t Ag (3.41 g/t AuEq or 256 g/t AgEq) over 10.2m, including 24.60 g/t Au and 238 g/t Ag (27.77 g/t AuEq or 2,083 g/t AgEq) over 0.8m. The Eagle Deposit adjoins the Main Deposit and represents a northern extension of the previously defined Mineral Resource Estimate in the Los Ricos South PEA.
Torex Gold Resources Inc., released results from the drilling program conducted at its Media Luna project in Guerrero. This program was focused on upgrading Indicated Resources to the Measured category and targeting spatial gaps in prior drilling to expand Inferred Mineral Resources. Drilling highlights include hole ML22-823D with 40.48 g/t Au, 87 g/t Ag, and 2.76% Cu (46.05 g/t AuEq) over 28.40m; hole ML22-804D with 10.79 g/t Au, 101 g/t Ag, and 3.09% Cu (17.08 g/t AuEq) over 58.08m; hole ML22-768D with 13.98 g/t Au, 112 g/t Ag, and 3.69% Cu (21.39 g/t AuEq) over 26.39m; hole ML22-762A with 13.27 g/t Au, 17 g/t Ag, and 0.46% Cu (14.23 g/t AuEQ9 over 22.43m; hole ML22-835D with 6.72 g/t Au, 29 g/t Ag, and 0.92% Cu (8.58 g/t AuEq) over 34.75m; hole ML22-767D with 4.57 g/t Au, 80 g/t Ag, and 2.50% Cu (9.63 g/t AuEq) over 26.15m; hole ML22-913 with 4.75 g/t Au, 29 g/t Ag, and 1.76% Cu (8 g/t AuEq) over 25.43 g/t AuEq over 25.43m; hole ML22-910 with 1.06 g/t Au, 54 g/t Ag, and 1.25% Cu (3.78 g/t AuEq) over 48.05m; hole ML22-877A with 1.53 g/t Au, 25 g/t Ag, and 0.73% Cu (3.03 g/t AuEq) over 26.77m; and hole ML22-915 with 1.94 g/t Au, 6 g/t Ag, and 0.34% Cu (2.56 g/t AuEq) over 18.05m.
ON DEALS AND CORPORATE ISSUES
Guanajuato Silver Company Ltd., announced that a leading US based institutional investor has acquired a significant equity position in the company through the purchase of 24M common shares representing the majority of the equity position previously held by Great Panther Mining Ltd. (El Cubo, Valenciana, and San Ignacio Mines in Guanajuato).
Bear Creek Mining Corporation provided an update on the USD $25M payment to Equinox Gold Corp., for the Mercedes mine in Sonora. Bear Creek has revised the terms of the heads of agreement with Equinox to amortize over a two-year period payment of the final USD $25M purchase price installment. “The Revised Terms provide for converting the Deferred Payment into a secured interest bearing promissory note (the “Note”). The Note bears a nominal rate of interest equal to 12.5% per annum plus the greater of (i) 90-day average Secured Overnight Financing Rate and (ii) 2.50% per annum, and matures after a term of two years on October 21, 2024 (the “Maturity Date”). Commencing March 3, 2023, the Note will amortize at a fixed rate of USD $700K per month during the first year until March 3, 2024 and thereafter at an amount per month equal to the greater of (i) USD $700K and (ii) 50% of the free cash flow generated from Mercedes”. In addition to the Note, the Company will issue to Equinox Gold 2,750,000 common shares of the Company.
ON SOCIAL RESPONSIBILITY
Endeavour Silver Corp., published its inaugural climate strategic report in which provided specific information in four areas: governance, strategy, risk management, and metrics and targets (Guanacevi mine, Durango).
Content like what you have just read can be seen at https://gambusinoprospector.com/ and at LinkedIn’s Mexico Mineral Exploration Group.
On the picture above, quartz-sericite-pyrite (phyllic alteration) in a porphyry copper project in Sonora, Mexico. Photo by Miguel A Heredia.
During the 8th week of the year (February 20th to February 26th, 2023), at least 23 press releases were announced by companies working in Mexico, with ten reporting resources and developments of their properties, six communicating production and financial results, two informing on exploration results, two commenting on Mexican issues, one disclosing deals and corporate issues, one announcing financing issues, and one discussing social issues. ON MEXICO ISSUES, Almaden regretted the decision of Mexico´s Ministry of Economy to deny the two mineral title applications which were first made by Almaden in 2002 and 2008, and which in turn led to the grant of mineral titles in 2003 and 2009, respectively. GoGold, Bear Creek, GR Silver, and Guanajuato Silver reported the best drilling intercepts in Mexico on the fourth week of February, 2023. ON EXPLORATION, In Sonora, Tocvan released results from surface channel sampling of selected area for a bulk sample at its Pilar project. In Coahuila, Monumental Minerals provided an update and defined drill targets at its Jemi Heavy Earth Rare Element project. ON MINING, Coeur reported Q4 and full year 2022 production and financial results from its Palmarejo mine in Chihuahua. Starcore announced Q3, 2023 production results from its San Martin mine in Queretaro. Equinox provided 2023 guidance for its Los Filos mine in Guerrero. Bear Creek announced 2023 production guidance for its Mercedes mine in Mexico. Gatos Silver released 2023 production and cost guidance for its Cerro Los Gatos mine in Chihuahua. First Majestic reported Q4 and full year 2022 production and financial results from their Mexican mine operations. ON FINANCING, Silver Tiger closed its previously announced bought deal offering for gross proceeds of approximately CAD $18M (El Tigre project, Sonora). ON RESOURCES AND DEVELOPMENT, GoGold reported additional drilling results from Los Ricos South, within the Eagle and Main Deposits in Jalisco. Guanajuato Silver announced drill results from its San Ignacio mine in Guanajuato. Alamos Gold reported Mineral Reserves and Resources for the year-ended 2022 at its Mulatos project, Sonora. Bear Creek released results of recent drilling from its Marianas and Rey de Oro deposits at its Mercedes mine in Sonora. Chesapeake announced updated Minera Resource Estimate for its world class Metates deposit in Durango. Minera Alamos informed the commencement of drilling at its Santana project in Sonora. GR Silver reported underground drilling results from 35 holes drilled as part of the 2022 infill and exploratory drilling program conducted at its Plomosas project in Sinaloa. Silver Dollar identified five new mineralized target areas at its la Joya project in Durango. Regency Silver announced that two follow-up holes down-dip were completed at its Dios Padre project in Sonora. Vizsla provided a year-end 2022 summary of its activities carried out at its flagship Panuco project in Sinaloa. ON DEALS AND CORPORATE ISSUES, Minera Alamos granted stock options to its management team, Board of Directors, and certain consultants (Santana project, Sonora). ON SOCIAL RESPONSIBILITY, Almaden signed a cooperation agreement with the Ejido Santa Maria Zotoltepec, the ejido located closest to its Ixtaca project in Puebla.
ON MEXICO ISSUE
Almaden Minerals Ltd., regretted the decision of Mexico´s Ministry of Economy to deny the two mineral title applications which were first made by Almaden in 2002 and 2008, and which in turn led to the grant of mineral titles in 2003 and 2009, respectively. These mineral titles underpin the Ixtaca deposit which was discovered by Almaden in 2010. As previously reported, these mineral titles were reduced to application status as a result of an early 2022 decision of Mexico’s Supreme Court of Justice (SCJN). Almaden believes that this action by the Secretariat of Economy is inconsistent with the Mexican Mining Law, the SCJN decision, and international law. The Company expects to submit arguments challenging the Secretariat of Economy’s submissions to the District Court within the next few days.
GoGold Resources Inc., Bear Creek Mining Corporation, GR Silver Mining Ltd, and Guanajuato Silver Company Ltd reported the best drilling intercepts in Mexico on the fourth week of February, 2023. Details are shown in the table below:
ON EXPLORATION
Tocvan Ventures Corp., released results from surface channel sampling of selected area from an up to 1,000 tonnes of oxide-gold bulk sample at its Pilar project in Sonora. Channel sampling was completed every 5m perpendicular to exposed mineralization and alteration at surface along the Main Zone and 4-T trends. Eight locations were sampled to test varying levels of exposed mineralization, all eight trench locations returned anomalous gold and silver values. Highlights include TR-2023-001 where seven samples over a 35m trend returned an average grade of 2.2 g/t Au and 14 g/t Ag, ranging from 8.3 g/t Au to 0.1 g/t Au; TR-2023-002 where five samples over a 20m trend returned an average grade of 2.8 g/t Au and 9 g/t Ag, ranging from 7.1 g/t Au to 0.7 g/t Au; and TR-23-007 where five samples along a 25m trend returned an average grade of 2.2 g/t Au and 30 g/t Ag ranging from 7.3 g/t Au to 0.1 g/t Au. “Bulk Sample material will be extracted and prepared for processing by heap-leach method at a private mining operation less than 25km to the west of Pilar”.
Monumental Minerals Corp., provided an update and defined drill targets at its Jemi heavy earth rare element project, located in Coahuila State. The exploration program carried out by the exploration team of the company consisted of detailed mapping and rock sampling, regional stream sediment sampling, ground radiometric geophysical surveys, and lithogeochemical sampling. The exploration effort has been focused on the Jemi dikes and Veladora Norte areas, which host peralkaline intrusion related REE mineralization. “Of the 188 samples with assay results, over one third (76 samples) returned values greater than 0.15% total rare earth oxide (TREO), including 5 samples that returned values greater than 1.0% TREO to a maximum value of 2.4% TREO. The average TREO for all samples is 0.21%, and a minimum value of 9 parts per million (ppm), which was returned in an iron-oxide/calcite vein”. This rock sampling has defined a series of high priority drill targets.
ON MINING
Coeur Mining Inc., reported Q4 and full year 2022 production and financial results from its Palmarejo mine in Chihuahua. On Q4, 2022 the company milled 554,247 tonnes of 1.59 g/t Au and 98 g/t Ag with metallurgical recoveries of 92.4% and 85% respectively to produce approximately 26K Oz Au and 1.49M Oz Ag. It sold 25.2K Oz Au and 1.49M Oz Ag at an average realized price of USD $1,519 per Oz Au and USD $21.10 per Oz Ag. Coeur reported metal sales of USD $69.5.4M; cost applicable to sales (CAS) of USD $47.1M; adjusted CAS per Oz Au of USD $1,027 and adjusted CAS per Oz Ag of USD $14.23; exploration expense of USD $1.5M; cash flow from operating activities of USD $18.9M; total capital expenditures of USD $8.1M; and free cash flow of USD $10.8M. On the full year 2022, Coeur milled approximately 2.2M tonnes of 1.65 g/t Au and 113 g/t Ag with metallurgical recoveries of 92.1% and 84.2% respectively to produce approximately 106.8K Oz Au and 6.71M Oz Ag. It sold 107.1K Oz Au and 6.7M Oz Ag at an average realized price of USD $1,471 per Oz Au and USD $21.78 per Oz Ag. Coeur reported metal sales of USD $303.4M; cost applicable to sales (CAS) of USD $1822.6M; adjusted CAS per Oz Au of USD $883 and adjusted CAS per Oz Ag of USD $13.05; exploration expense of USD $6.6M; cash flow from operating activities of USD $88.4M; total capital expenditures of USD $42.6M; and free cash flow of USD $45.8M.
Starcore International Mines Ltd., announced Q3, 2023 production results from its san martin mine in Queretaro. The company milled 58,562 tonnes of 1.29 g/t Au and 9 g/t Ag with metallurgical recoveries of 85.24% and 48.95% respectively to produce 2,182 Oz AuEq.
Equinox Gold Corp., provided 2023 guidance for its Los Filos mine in Guerrero. The company expects to produce between 160K-180K Oz Au at cash and all includes sustaining cost of USD $1,460-USD $1,620 and USD $1,680-USD $1,865 per Oz Au produced respectively; and a sustaining cost of USD $40M.
Bear Creek Mining Corporation announced 2023 production guidance for its Mercedes mine in Mexico. The company expects to produce 65K-75K Oz Au and 210K-243K Oz Ag during 2023 at an average cash cost per Oz Au in the range of $830-$890 , and all in sustaining cost of $1,120-$1,290 per Oz Au.
Gatos Silver Inc., released 2023 production and cost guidance for its Cerro Los Gatos mine in Chihuahua. The company expects to produce between 7.4-8.2M Oz Ag, 57-63M Lb Zn in Zn concentrates, 36-40M Lb Pb in Pb concentrates, and 5.4-6.2K Oz Au in Pb concentrates (or 12.4-13.8M Oz AgEq). All in sustaining cost for silver production and silver equivalent production has been estimated in USD $11-13 and USD $15.50-17.50 per Oz payable respectively. Gatos Silver also estimated sustaining capital expenditures at USD $45M; and exploration and definition drilling expenditures at USD $13M, including drilling of the south-east deep zone and district exploration.
First Majestic Silver Corp., reported Q4 and full year 2022 production and financial results from their Mexican mine operations. The tables below show figures by mine for the period Q4 and full year 2022:
ON FINANCING
Silver Tiger Metals Inc., closed its previously announced bought deal offering of 58.1M of common shares at a price of CADS $0.31 per share for gross proceeds of approximately CAD $18M. Gross proceeds will be used to continue advancement of its El Tigre mine in Sonora, and for general corporate purposes.
ON RESOURCES AND DEVELOPMENT
GoGold Resources Inc., reported additional drilling results from Los Ricos South, within the Eagle and Main Deposits in Jalisco. Drilling highlights include hole LRGAG-22-110 on the Eagle Deposits with 1.43 g/t Au and 43 g/t Ag (2 g/t AuEq or 150 g/t AgEq) over 62.4m, including 4.57 g/t Au and 71 g/t Ag (5.52 g/t AuEq or 414 g/t AgEq) over 16m, including 17.05 g/t Au and 189 g/t Ag (19.57 g/t AuEq or 1,468 g/t AgEq) over 1.4m; hole LRGAG-22-113 on the Eagle Deposit with 3.29 g/t Au and 358 g/t Ag (8.06 g/t AuEq or 605 g/t AgEq), including 20.05 g/t Au and 2,000 g/t Ag (46.72 g/t AuEq or 3,504 g/t AgEq) over 1.8m, including 40 g/t Au and 3,490 g/t Ag (86.53 g/t AuEq or 6,490 g/t AgEq) over 0.8m, plus 2.32 g/t Au and 58 g/t Ag (3.09 g/t AuEq or 232 g/t AgEq) over 29.5m, including 5.20 g/t Au and 72 g/t Ag (6.16 g/t AuEq or 462 g/t AgEq) over 12.3m, including 21.10 g/t Au and 170 g/t Ag (23.37 g/t AuEq or 1,752 g/t AgEq) over 1m; hole LRGAG-22-115 on the Eagle Deposit with 1.44 g/t Au and 75 g/t Ag (2.45 g/t AuEq or 183 g/t AgEq) over 31.5m, including 3.38 g/t Au and 147 g/t Ag (5.34 g/t AuEq or 400 g/t AgEq) over 11m, including 12.85 g/t Au and 64 g/t Ag (13.70 g/t AuEq or 1,028 g/t AgEq) over 1; and hole LRGAG-22-227 on the Main Deposit with 1.28 g/t Au and 105 g/t Ag (2.68 g/t AuEq or 201 g/t AgEq) over 29m, including 4.84 g/t Au and 352 g/t Ag (9.54 g/t AuEq or 715 g/t AgEq) over 6.3m, including 24 g/t Au and 335 g/t Ag (28.47 g/t AuEq or 2,135 g/t AgEq) over 0.7m. The Eagle Deposit adjoins the Main Deposit and represents a northern extension of the previously defined Mineral Resource Estimate in the Los Ricos South PEA.
Guanajuato Silver Company Ltd., announced drill results from its San Ignacio mine in Guanajuato. Drilling highlights include hole UGSI22-005, the best drill hole the company has drilled at any of its mines acquired from Great Panther, with 5.11 g/t Au and 810 g/t Ag (1,219 g/t AgEq) over a true width (TW) of 4.92m, including 25.84 g/t Au and 4,914 g/t Ag (6,981 g/t AgEq) over a TW of 0.42m, including 28.23 g/t Au and 1,693 g/t Ag (3,951 g/t AgEq) over a TW of 0.42m. This significant drill result on the Melladito vein will be followed up with additional drill holes attempting to follow the down dip extension of the vein within the Company’s 2023 drill campaign. In addition, the company is in the midst of driving a 400m access ramp from Melladito to the analogous Purisima vein, which offers the potential for expanded production at San Ignacio mine. Guanajuato Silver also confirmed that it will provide an updated mineral resource estimate which is expected to be completed by Q3, 2023.
Alamos Gold Inc., reported Mineral Reserves and Resources for the year-ended 2022 at its Mulatos project, Sonora. The company reported Proven + Probable Mineral Reserves of 26,734,000 tons with an average grade of 1.95 g/t Au for a total of 1,679,000 Oz Au contained. Alamos Gold also announced Measured + Indicated Mineral Resources (exclusive of Mineral Reserves) for 10,302,000 tonnes of 2.52 g/t Au for a total of 502K Oz Au contained, and Inferred Resources for 1,774,000 tonnes of 1.27 g/t Au for a total of 72K Oz Au contained. In addition, the company has budgeted a total of USD $17M for exploration in 2023. This budget comprises 16,000m of surface exploration drilling at Puerto del Aire, Gap Victor, and Estrella Zones, and 34,000m for regional exploration on high priority targets, including Halcon, Halcon West, Carricito, Bajios, and Jaspe.
Bear Creek Mining Corporation released results of recent underground drilling from its Marianas and Rey de Oro deposits at its Mercedes mine in Sonora. Drilling highlights (reported in true widths) include hole UG-MR22-105 collared on Marianas Deposit with 5.68 g/t Au and 6 g/t Ag over 2.8m, plus 12.43 g/t Au and 12 g/t Ag over 2.8m; hole UG- MR22-106 on Mariana Deposit with 41 g/t Au and 24 g/t Ag over 0.8m; hole UG-MAR22-113 on Mariana Deposit with 8.47 g/t Au and 32 g/t Ag over 3m, plus 5.02 g/t Au and 7 g/t Ag over 3m; hole UG-RDO23-075 collared on Rey de Oro Deposit with 10.23 g/t Au and 182 g/t Ag over 3.5m; hole UG-RDO22-077 on Rey de Oro Deposit with 15.35 g/t Au and 109 g/t Ag over 1.03m; and hole M22-934D on GAP Deposit with 6.47 g/t Au and 58 g/t Ag over 2.2m. “The Marianas and GAP drilling represent step-outs from the existing underground mining operations along the main Mercedes vein zone. The Rey de Oro drilling represents extensions downdip and along strike of the existing reserves and underground operations”.
Chesapeake Gold Corp., announced updated Minera Resource Estimate (MRE) for its world class Metates deposit in Durango. The updated MRE incorporates an additional 23 holes drilled by Chesapeake and has an effective date of January 28, 2023. It include Measured + Indicated Resources for 921.2M tonnes with average grades of 0.57 g/t Au and 14 g/t Ag for a total of 16.77M Oz Au and 423.2M Oz Ag contained, and Inferred Resources for 139.5M tonnes with average grades of 0.47 g/t Au and 13 g/t Ag for a total of 2.13M Oz Au and 59 M Oz Ag contained. “This updated MRE together with on-going metallurgical work will form the basis of a new Pre-Feasibility Study”.
Minera Alamos Inc., informed the commencement of drilling at its Santana project in Sonora. The company plans to drill a number of gold bearing breccia pipes in the cluster that comprise the Santana project. Some of these priority targets such as Zata and Benjamin Hill have never been drilled before. Over 10,000m of drilling in up to 80 holes have been planned by the company`s exploration team to drill-test the targets.
GR Silver Mining Ltd., reported underground drilling results from 35 holes drilled as part of the 2022 infill and exploratory drilling program conducted at its Plomosas project in Sinaloa. Drilling highlights ( reported in true widths) include hole PLIP22-30 with 69 g/t Ag, 2.67 g/t Au, 0.1% Pb, 0.2% Zn, and 0.2% Cu (353 g/t AgEq) over 14.1m, including 227 g/t Ag, 5.39 g/t Au, 0.3% Pb, 0.6% Zn, and 0.4% Cu (808 g/t AgEq) over 1.6m, including 219 g/t Ag, 40.18 g/t Au, 0.3% Pb, and 1% Cu (4,075 g/t AgEq) over 0.6m; hole PLIP22-52 with 2 g/t Ag and 1.91 g/t Au (182 g/t AgEq) over 8.1m, including 33 g/t Ag and 64.5 g/t Au (6,033 g/t AgEq) over 0.2M; hole PLIP22-29 with 55 g/t Ag, 1.01 g/t Au, 3.1% Pb, 4.8% Zn, and 0.2% Cu (441 g/t AgEq) over 21.7m, including 299 g/t Ag, 5.42 g/t Au, 1.8% Pb, 9.7% Zn, and 0.6% Cu (1,291 g/t AgEq) over 2.8m; hole PLIP22-35 with 20 g/t Ag, 1.8 g/t Au, 0.5% Pb, 1.5% Zn, and 0.3% Cu (221 g/t AgEq) over 14.2m, including 44 g/t Ag, 1.1 g/t Au, 10.4% Pb, 15.3% Pb, and 0.3% Cu (1,059 g/t AgEq) over 0.2m, including 46 g/t Ag, 6.09 g/t Au, 2.7% Pb, 8.4% Pb, and 0.8% Cu (1,105 g/t AgEq) over 0.8m; and hole PLIP22-42 with 30 g/t Ag, 0.76 g/t Au, 7.9% Pb, 7.9% Zn, and 0.3% Cu (669 g/t AgEq) over 8.3m, including 49 g/t Ag, 0.41 g/t Au, 7.8% Pb, 10.9% Zn, and 1.1% Cu (846 g/t AgEq) over 0.9m, including 50 g/t Ag, 1.97 g/t Au, 19.7 g/t Pb, 15.6% Zn, and 0.3% Cu (1,422 g/t AgEq) over 2.7m.
Silver Dollar Resources Inc., identified five new mineralized target areas at its la Joya project in Durango. These areas are located in the unexplored portion of the property and were outlined during the last exploration campaign which consisted of geological mapping and sampling. The Verde and Hueco Areas were partially drilled by a previous operator, while Dyke North, Dyke South, and South-East Areas never have been drill tested before.
Regency Silver Corp., announced that two follow-up holes down-dip from REG-22-01 were completed at its Dios Padre project in Sonora. Hole REG-22-01 intersected 6.84 g/t Au, 22 g/t Ag, and 0.88% Cu over 35.8m, including 13.97 g/t Au, 50 g/t Ag, and 1.11% Cu over 9.8m. Hole REG-23-14 encountered 32m of pyrite-specularite-chalcopyrite supported breccia from approximately 454-486m within a broader zone of disseminated and vein hosted mineralization approximately 25m down dip from REG-22-01, while hole REG-23-15 intersected 120m of specularite-pyrite-chalcopyrite supported breccia from approximately 400-520m within a broader zone of disseminated and vein hosted mineralization approximately 85m down-dip from REG-22-01 and about 62m down-dip from REG-23-14.
Vizsla Silver Corp., provided a year-end 2022 summary of its activities carried out at its flagship Panuco project in Sinaloa, and outlined the goals for 2023. During Q1, 2022 the company announced its initial mineral resource estimate (MRE) centered on the western portion of the Panuco district. In 2022, Vizsla completed over 121,000m of additional drilling to conclude in an updated MRE on January 2023, with a significant increase in gold and silver as well as in the overall grade. The company also discovered other near-surface, high-grade structures, demonstrating the growth potential outboard of the known resource boundaries. “For 2023, our focus is on incremental expansion and de-risking of the current resource base. With a fully funded +90,000m drill program utilizing seven drill rigs, we plan to update the current Panuco resource estimate in the second half of 2023, which will be followed in due course by an initial Preliminary Economic Assessment”.
ON DEALS AND CORPORATE ISSUES
Minera Alamos Inc., granted stock options to its management team, Board of Directors, and certain consultants. The Board of Directors approved the issuance of a total of 2.25M options at an exercise price of $0.51, and 6.9M at an exercise price of $0.45. All the options will expire in 5 years and vest 50% on the first anniversary of their grant and 50% on the second anniversary (Santana project, Sonora).
ON SOCIAL RESPONSIBILITY
Almaden Minerals Ltd., signed a cooperation agreement with the Ejido Santa Maria Zotoltepec, the ejido located closest to its Ixtaca project in Puebla, to support an agro-technological package aimed at sustainable plan nutrition and soil enrichment.
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, an outcrop of a flow banded rhyolite in a low-sulphidation epithermal veins prospect in Sonora Mexico. Photo by Miguel A Heredia.
During the 3rd week of the year (January 16th to January 22nd, 2023), 20 companies working in Mexico released news on their properties. Two companies posted on exploration of non-advanced properties, six companies posted on Q4 2022 production figures, one released its 2023 production guidance and one announced the re-start of operations at a processing plant in Guanajuato. One company extended the maturity date of convertible debentures. Five companies informed on work at its advanced properties, including three that released drilling results and two that updated on mineral resources. One company restricted the NSR agreement on an advanced property, one informed on the acquisition of a past-producing mine and one other informed on the leasing of its processing plant for part of the profits. ON MEXICO ISSUES, no relevant news. ON EXPLORATION, In Sonora, Reyna Gold released sample results from its La Gloria project. In Jalisco, Almadex Minerals updated on exploration plans at San Pedro. ON MINING, Orla Mining, Avino Silver, Fortuna Silver, Gold Resource, Pan American Silver and First Majestic Silver presented production reports for Q4 2022. Torex Gold released its 2023 production guidance and Guanajuato Silver is to start processing at the Cata mill in Guanajuato. Capitan Mining released drill results from the Jesús María system at its Cruz de Piedra project in Durango. ON FINANCING, Excellon Resources is to convert C$4.5 M of debentures into equity and extend the maturity of remaining principal. ON RESOURCES AND DEVELOPMENT, GR Silver released drilling results from the SE zone of the San Marcial project in Sinaloa. Regency Silver updated the resource estimate at Dios Padre in Sonora. GoGold Resources posted drilling results from El Favor deposit at its Los Ricos North project in Jalisco. Excellon Resources filed a PEA on La Negra deposit in Hidalgo. ON DEALS AND CORPORATE ISSUES, Defiance Silver restructured an option agreement to acquire the NSR at the Tepal project in Michoacan. Excellon Resources announced last week the acquisition agreement on the past-producing La Negra mine in Hidalgo. Xali Gold signed a lease for part of the profits obtained in the processing of minerals by a private company at its San Dieguito de Arriba mill in Nayarit. ON SOCIAL RESPONSIBILITY, First Majestic Silver received the “Silver Helmet Award” for underground mining with more than 500 workers for its health and safety performance.
ON MEXICO ISSUES
No Relevant News.
ON EXPLORATION
Reyna Gold Corp. released sample results from district-scale exploration at its 24,215 hectare La Goloria property in Sonora. At Las Carmelitas 43 samples average 2.25% Cu, 89 gpt Ag, 0.21 gpt Au and 0.48% Sb defining a supergene enrichment zone on conglomerate, agglomerate and sandstone with a 2.5 Km by 1.7 km footprint continuing undercover in several directions. At the Western target new parallel structures have been discovered on a 1,500 by 450 m zone with eight samples returning 2.89 to 11.35 gpt Au, up to 27 gpt Ag and 22 to 135 gpt Tellurium. At La Republicana the northwest-southeast trend has now been extended with discontinuous veins and veinlets for 2.8 km, and a width of 625 m with grades of up to 103.5 gpt Au, 283 gpt Ag, 2.4% Cu, 5.33% Pb, 0.12% Zn. “At least 3 hydrothermal events have occurred in the zone: 1) veins and veinlets of white quartz (occasionally greyish) with the presence of galena, chalcopyrite, and covellite, 2) veins and veinlets of quartz-tourmaline (cutting first event structures) coarse pyrite is observed, traces of chalcopyrite and secondary minerals such as hematite, jarosite, malachite and chrysocolla, 3) filling of calcite and iron carbonates within second event structures”. Drilling is programmed for March 2023.
Almadex Minerals Ltd. updated on exploration plans for its San Pedro project in Jalisco. The breccias intercepted in 2022 drilling appear to have a sub horizontal distribution. “Further surface mapping is planned to confirm and refine this interpretation in order to optimise the next drilling program. The elevated base metals and copper seen in the breccia, along with acid sulphate altered fragments suggests that the breccia and related mineralisation may be a late feature in the lithocap environment”. It is interpreted that the acid sulphate lithocap present has potential for gold mineralization, and deep copper potential beneath.
ON MINING
Orla Mining Ltd. provided an operational update for the fourth quarter 2022. The Camino Rojo Oxide mine produced 32,017 Oz Au during the period, and 109,596 Oz Au throughout the full year. All-in sustaining costs (AISC) has been maintained at $600 to $700 per Oz Au for the year. Production for 2023 is expected to be between 100,000 to 110,000 Oz Au. “Income taxes accrued during 2022, including Mexican Special Mining Duty, totalling approximately $35 million, will be paid in a lump sum in March 2023. Thereafter, Orla expects to pay income tax instalments monthly, beginning in May 2023”. Orla ended the year with a cash position of $96.6 M.
Avino Silver & Gold Mines Ltd. reported fourth quarter 2022 production results at the Avino mine in Durango. During the period 150.3 K tonnes were milled at an average grade of 70 gpt Ag, 0.62 gpt Au, 0.53% Cu, recovering 92% Ag, 81% Au, 88% Cu to produce 309.8 K Oz Ag, 2,426 Oz Au, 1.54 M Lb Cu (770 .1 K Oz AgEq). For the year 541.8 K tonnes were milled @ 62 gpt Ag, 0.42 gpt Au, 0.61% Cu, recovering 92% Ag, 78% Au, 89% Cu, to produce 985.2 K Oz Ag, 5,778 Oz Au, 6.50 M Lb Cu (2.65 M Oz AgEq). The dry-stack tailing facility was commissioned and is now fully operational.
Guanajuato Silver Company Ltd. announced that the Cata mill has commenced precious metals processing at the Valenciana Mines Complex (VMC) in Guanajuato. The company is to start processing material at a rate of 8 K tonnes per month and to increase it later in the year to 20 K tonnes per month. The mill has a nameplate capacity of 36 K tonnes per month. “The Company plans to operate the Cata mill with production from both VMC and the San Ignacio mine …… intends to backfill tailings underground using a hydraulic fill system that will make use of select voids and open stopes that have been created at VMC over the past 450 years of underground mining”.
Torex Gold Resources Inc. provided operational guidance for 2023 and 5-year production outlook for the Morelos Complex in Guerrero, which comprises the El Limón Guajes (ELG) Complex and the Media Luna project. For 2023 at ELG the expected gold production is between 440 K and 470 K Oz Au at total cash costs $740 to $780 per OZ Au and all-in sustaining costs of $1,080 to $1,130. “The strip ratio for 2023 is expected to average 10.7:1 compared to 8.9:1 in 2022 given additional laybacks within the El Limón and El Limón Sur open pits. Based on the current mine plan, a higher portion of waste is expected to be mined in the second and third quarters compared with the first and fourth quarters”. Approximately $39 M are budgeted for exploration and drilling in 2023, including $20 M for Media Luna, $6 M for ELG underground, $8 M for exploration in near mine on early exploration targets and $5 M in definition and grade control drilling. For the next five years production is expected to be in the 400 K to 500 K Oz Au per year.
Fortuna Silver Mines Inc. reported production results for the fourth quarter 2022, including figures from its Mexican operations. During the fourth quarter 259.5 K tonnes were milled at a rate of 2,883 tonnes per day (tpd), averaging 194 gpt Ag, 1.13 gpt Au, recovering 91.1% Ag, 89.8% Au to produce 1.47 M Oz Ag, 8,499 Oz Au. For the year, 1.03 M tonnes were milled at a rate of 2,925 tpd, averaging 191 got Ag, 1.14 gpt Au, to produce 5.76 M Oz Ag, 34,124 K Oz Au. For 2023 the company plans to process 1.03 M tonnes @ 186 gpt Ag, 1.19 gpt Au, reflecting the declining grade profile of mineral reserves.
Gold Resource Corp. released fourth quarter 2022 production for the Arista mine in Oaxaca. During the period 97.8 K tonnes were milled at a rate of 1,353 tonnes per day, averaging 2.68 gpt Au, 91 gpt Ag, 0.37% Cu, 2.29% Pb, 4.79% Zn to produce 6,933 Oz Au, 265.8 K Oz Ag, 284 tonnes Cu, 1,808 tonnes Pb, 3,920 tonnes Zn.
Pan American Silver Corp. announced preliminary production results for the Q4 2022, including figures from its Mexican operations. At La Colorada, in Zacatecas, 1.34 M Oz Ag, 700 Oz Au were produced during the period, for a yearly total of 5.93 M Oz Ag, 3,300 Oz Au. At Dolores, in Chihuahua, 0.59 M Oz Ag, 34,600 Oz Au were produced during the quarter, for a yearly production of 2.24 M Oz Ag, 136,900 Oz Au.
First Majestic Silver Corp. released total production results for the fourth quarter of 2022. The company’s consolidated production from its three operating mines in Mexico (San Dimas in Durango, Santa Elena in Sonora, La Encantada in Coahuila) was 2.39 M Oz Ag, 46,194 Oz Au (or 6.17 M Oz AgEq). The liquid natural gas powerplant at Santa Elena was expanded from 12 MW to 24 MW “to supply low‐cost, clean power to the Ermitaño mine and the recently completed dual‐circuit plant”. In exploration, four drilling rigs are operating at Dan Dimas, in Durango, three at Santa Elena in Sonora and one at La Encantada, in Coahuila.
ON FINANCING
Excellon Resources Inc. entered into a binding term sheet with holders representing approximately 66.67% of the principal “amount of outstanding convertible debentures to convert 25% of the debentures (C$4.5 M) into equity and reprice and extend maturity of remaining principal outstanding upon closing the acquisition of La Negra property in Queretaro, providing greater flexibility to the Company. Furthermore, reprice the conversion price of the remaining principal to C$0.535 per share, 6.5% interest rate or 10.0% payable in shares at the company’s election” (La Negra, Hidalgo).
ON RESOURCES AND DEVELOPMENT
GR Silver Mining Ltd. released surface drilling results from six holes in the Southeast Area of the San Marcial project in Sinaloa. Highlighted core-length intervals comprise 5.6 m @ 1,223 gpt Ag, 1.4% Pb, 1.2% Zn (including 0.3 m @ 25,150 gpt Ag, 30% Pb, 18.6% Zn); 82.7 m @ 121 gpt Ag (including 0.4 m @ 3,386 gpt Ag and 1.1 m @ 1,391 gpt Ag); 112.6 m @ 61 gpt Ag (including 0.9 m @ 1,055 gpt Ag); 0.6 m @ 14.3 gpt Au. “The six holes represent extensions along strike or down dip, creating the potential to expand silver mineralization boundaries”.
Capitan Mining Inc. released drill assays for five holes on the Jesus Maria zone at the Cruz de Piedra project in Durango. Highlighted core length intervals comprise 16.8 m @ 0.35 gpt Au, 187 gpt Ag, 0.1% Pb, 0.1% Zn (including 1.5 m @ 1.36 gpt Au, 1,381 gpt Ag, 0.8% Pb, 0.5% Zn); 4.6 m @ 0.63 gpt Au, 183 gpt Ag (including 1.5 m @ 1.45 gpt Au, 504 gpt Ag); 15.2 m @ 0.44 gpt Au, 21 gpt Ag, 0.5% Pb, 0.8% Zn (including 1.5 m @ 1.82 gpt Au, 81 gpt Ag, 3.2% Pb, 4.2% Zn). The Jesus Maria zone has been traced by trenching and drilling for 750 m of strike length to a depth of up to 150 m “On Dec 6 th, 2022, Capitan announced that it had entered into a transaction with a third party to consolidate the 2.5km high grade Jesus Maria trend”.
Regency Silver Corp. announced an updated resource estimate for its Dios Padre project in Sonora. The updated resource estimate incorporates 1,056 m of drilling in 8 holes drilled in 2022 and 10,425 m of historic drilling in 66 holes, to define inferred resources of 1.384 M tonnes @ 228 gpt Ag, 0.32 gpt Au (255.6 gpt AgEq) containing 10.14 M Oz Ag, 14,000 Oz Au. “The resource estimate contains information from the historic Dios Padre silver mine only and does not include any information from the recent discovery hole REG 22-01 which contained an intercept of 35.8 metres of 6.84 g/t gold, 0.88% copper and 21.82 g/t silver”.
GoGold Resources Inc. released the results of eight holes from El Favor East deposit within Los Ricos North project in Jalisco. Highlighted core length intervals comprise 84.5 m @ 0.24 gpt Au, 79 gpt Ag; 44.8 m @ 0.30 gpt Au, 111 gpt Ag (including 17.3 m @ 0.71 gpt Au, 225 gpt Ag); 7.8 m @ 0.45 gpt Au, 190 gpt Ag; 19.9 m @ 0.59 gpt Au, 392 gpt Ag (including 5.0 m @ 1.97 gpt Au, 1,300 gpt Ag, which includes 1.2 m @ 6.48 gpt Au, 3,722 gpt Ag); 18.3 m @ 0.21 gpt Au, 97.4 gpt Ag; 35.2 m @ 0.18 gpt Au, 130 gpt Ag. “El Favor is located approximately 800 meters along strike to the east of the El Orito deposit. The combined systems cover approximately 2.9km in mineralized strike length over a 3.7km distance”.
Excellon Resources Inc. filed a preliminary economical assessment on La Negra project in Queretaro. The report summarizes the mineral resource estimate with 2.46 M tonnes @ 64 gpt Ag, 1.95% Zn, 0.50% Cu, 0.27% Pb, containing 5.1 M Oz Ag, 105.8 M Lb Zn, 27.1 M Lb Cu, 14.6 M Lb Pb in indicated resources and 6.42 M tonnes @ 80 gpt Ag, 1.80% Zn, 0.40% Cu, 0.65% Pb, containing 16.5 M Oz Ag, 254.8 M Lb Zn, 56.6 M Lb Cu, 92.0 M Lb Pb as inferred resources. The PEA envisages 7.4 years of mine life processing 6.22 M tonnes averaging 63 gpt Ag, 1.5% Zn, 0.4% Cu, 0.4% Pb at a daily rate of 2,500 tonnes.
ON DEALS AND CORPORATE ISSUES
Defiance Silver Corp. restructured the option agreement to acquire the 2.5% NSR at the Tepal project in Michoacan with Minera Tepal S.A. de C.V. “The company is making a payment of US $100,000 to defer all payments until June 30, 2024, at which time the remaining payment schedule will resume”.
Excellon Resources Inc. announced on January 9, 2023 a definitive acquisition agreement with Orion Resource Partners on the acquisition of the permitted, past-producing mine of La Negra, in Queretaro. The deal involves the payment on US$50 M paid through an upfront payment in shares of Excellon totaling US$20 M upon closing of the acquisition and a further US$30 M of deferred, “contingent consideration payable in common shares of the Company or in cash at the Company’s option, following the restart of commercial production”. La Negra property counts with 2.46 M tonnes @ 64 gpt Ag, 1.95% Zn, 0.50% Cu, 0.27% Pb, containing 5.1 M Oz Ag, 105.8 M Lb Zn, 27.1 M Lb Cu, 14.6 M Lb Pb in indicated resources and 6.42 M tonnes @ 80 gpt Ag, 1.80% Zn, 0.40% Cu, 0.65% Pb, containing 16.5 M Oz Ag, 254.8 M Lb Zn, 56.6 M Lb Cu, 92.0 M Lb Pb. The current PEA envisages 7.4 years of mine life processing 6.22 M tonnes averaging 63 gpt Ag, 1.5% Zn, 0.4% Cu, 0.4% at a daily rate of 2,500 tonnes.
Xali Gold Corp. signed a binding letter of intent with Minera Cinco Reales S.A. de C.V. on the San Dieguito de Arriba plant in Nayarit. Xali will have the right to receive 15% of the net profits from any mineral that is processed at the plant, or minimum payments of US$10 K in the fourth month from the signing, US$20 K on the fifth month, US$30 K on the sixth month, US$40 k on the seventh to tenth months, US$50 K from month eleven on. Before the fourth month, Xali should receive US$6.5 K on January 30th, US$6.5 K on February 27th, US$6.5 K on March 22nd. “Upon the execution of this Agreement, MCR will act as the only operator of the plant and will have the exclusive option to obtain permits and refurbish the plant and equipment to operational status and to manage and operate the SDA plant for their benefit for an initial period of 14 months …… Minera Cinco Reales operates several mines and processing plants (150 to 300 tonnes per day) in Northern and Central Mexico producing gold, silver, copper, lead and zinc”.
ON SOCIAL RESPONSIBILITY
First Majestic Silverwas awarded the prestigious “Silver Helmet Award” in the category of “Underground Mining of More Than 500 Workers” by the Mining Chamber of Mexico for its outstanding performance in occupational safety and health on its Santa Elena operations in Sonora.
On the image below: Tectonic breccia in granitic rock sealed by fine grained darker intrusive on a copper project in the Sonoran Desert. Picture by Abraham López.
During the 2nd week of the year (January 09th to January 15th, 2023), at least 30 press releases were announced by companies working in Mexico, and 4 news published by the media with nine communicating production and financial results, seven reporting resources and developments of their properties, five disclosing deals and corporate issues, five informing on exploration results, four announcing financing issues, and four commenting on Mexican issues. ON MEXICO ISSUES, The Ministry of the Environment and Natural Resources (SEMARNAT) withdrew the permit to Fortuna Silver Mines, which operates the San José mine in Oaxaca through the company Minera Cuzcatlán. Compañía Minera Cuzcatlán (Fortuna Silver) responded to SEMARNAT that it is operating normally at its San José mine in Oaxaca under complete legality. Mining companies shine at the beginning of the year on the Mexican Stock Exchange. The governments of Mexico and Canada have agreed to strengthen resilience in the supply chain in which both countries participate, reported Mary Ng, Minister of International Trade, Export Promotion, Small Business and Economic Development of Canada. Prime Mining, Tocvan Ventures, Oroco, and Silver Tiger reported the best drilling intercepts in Mexico on the second week of January, 2023. ON EXPLORATION, In Sonora, Aztec Minerals presented a summary of the results from its recently completed 2022 drilling program at its Cervantes project, Colibri completed additional drilling on its Evelyn project, Tocvan drill intersected a broad zone of gold at its El Picacho project, and Riverside provided a corporate outlook for 2023. In Sinaloa, Prismo Metals released results from the remaining holes from its now completed 2022 drill program at its Palos Verdes project. ON MINING, Aura, Alamos Gold, Americas, Endeavour, Gatos Silver, GoGold, Golden Minerals, and Torex announced Q4 and full-year 2022 production from their Mexican operations, and Altaley reported pre-production results during mill commissioning at its Tahuehueto property in Durango. ON FINANCING, Canuc closed a non-brokered private placement for gross proceeds of CAD $680K (San Javier project, Sonora). Guanajuato Silver closed the second and final tranche of its non-brokered private placement offering totaling CAD $8.5M (El Cubo, San Ignacio, and Valenciana mines, Guanajuato). Fabled announced that it plans to complete a non-brokered private placement for gross proceeds of up to CAD $1.5M (Santa Maria property, Chihuahua). Altaley entered into a debt settlement agreement with an arms’ length mining contractor to settle CAD $1,176,297 which is owing to the contractor as a result of underground mine development work (Tahuehueto mine, Durango). ON RESOURCES AND DEVELOPMENT, Regency Silver announced recommencement of the 2023 drilling program at its Dios Padre property in Sonora, as well as the commencement of an IP survey. Discovery outlined its 2023 work program and budget for its Cordero property in Chihuahua. Oroco released further assay results from the North Zone drilling program at its Santo Tomas project in Sinaloa. Prime Mining presented results from 48 drill holes collared in the Z-T area at its Los Reyes project, Sinaloa. Silver Tiger released results from its ongoing drilling program being conducted at its El Tigre project, Sonora. Sailfish announced results from its recently drilling program conducted at its Gavilanes property in Durango. Silver Viper reported positive geophysical and geochemical survey results at its Virginia project, Sonora. ON DEALS AND CORPORATE ISSUES, Santacruz announced the appointment of its new CFO (Zimapan property, Hidalgo). Excellon announced that its Board of Directors has approved the voluntary delisting of its common shares from the New York Stock Exchange (La Platosa mine, Durango). Fabled´s shareholders approved a share consolidation of the outstanding securities of the Company on an up to ten for one basis (Santa Maria property, Chihuahua). Vizsla completed strategic investment in the acquisition of Palos Verdes project, Sinaloa from Prismo Metals. ON SOCIAL RESPONSIBILITY, no relevant news.
ON MEXICO ISSUE
The Ministry of the Environment and Natural Resources (SEMARNAT) withdrew the permit to Fortuna Silver Mines, which operates the San Jose mine in Oaxaca through the company Minera Cuzcatlán since, according to SEMARNAT, it incurred in several irregularities. Such permit had been previously granted by some servants of SEMARNAT. In 2022, SEMARNAT said that it had been a misspelling to have issued a permit for 12 more years for the operation of this company. SEMARNAT was even questioned for providing legal advice to the company in order to obtain the environmental impact authorization and the regularization of construction of works for which it did not have authorization. With the suspension of the permit, SEMARNAT said that the company can appeal and resort to its influence peddling as it has done since its settlement in Oaxaca. However, if the judges confirm the resolution, it must withdraw and return the land to its owners, in addition to repairing the damage caused by the excessive pollution it has generated in the area.
Compañia Minera Cuzcatlán (Fortuna Silver) responded to SEMARNAT that it is operating normally at its San Jose mine in Oaxaca under complete legality. Derived from the notification received by the Ministry of the Environment and Natural Resources (SEMARNAT) at the beginning of 2023, regarding the intention of evaluating the MIA (Environmental Impact Statement) granted legally and correctly in December 2021, it is notified that this new procedure does not affect the daily activities of the Company, thus confirming that the San José Mining Unit, located in San José del Progreso, Oaxaca, is operating normally. Fortuna Silver Mines, communicated on January 5 of this year, that its San José Mining Unit, which operates through its subsidiary Compañía Minera Cuzcatlán, fully complies with all current environmental laws, for which it has expressed its disagreement and is taking legal measures to protect its more than 1,200 employees, a value chain made up of more than 600 companies, 150 of them from the area, as well as an annual income of more than MXP $600M that benefits more than 30,000 people in the Central Valleys of Oaxaca. “Likewise, the Company highlights that, in 11 years of operation, it has been inspected 15 times by the Federal Attorney for Environmental Protection (PROFEPA), in turn it has registered two inspections by the National Water Commission (CONAGUA), who in none of their proceedings have ruled on facts and/or indications of contamination at the site or derived from the operation of the San José Mine. Finally, Compañía Minera Cuzcatlán reiterates its commitment to continue working together with neighboring communities to improve and expand the social benefits of its operation, through sustainable development initiatives”.
Mining companies shine at the beginning of the year on the Mexican Stock Exchange. The increase in the price of metals such as gold, silver and copper, supported the rebound in the price of the shares of companies in the Mexican market these days. Industrias Peñoles and Grupo México are framed as the first and third issuers in the S&P/BMV IPC index, which brings together the 36 largest firms in the Mexican stock market, which have accumulated the most performance in these first days of 2023. In the first case its shares maintain gains of 21.55%, at a price of 291.30 pesos per unit, in the first six business days of January. For the second, the return has been 18.35%, at 80.96 pesos.
The governments of Mexico and Canada have agreed to strengthen resilience in the supply chain in which both countries participate, reported Mary Ng, Minister of International Trade, Export Promotion, Small Business and Economic Development of Canada. Mexico, Canada, and the United States have agreed to joint actions to strengthen their supply chains both regionally and globally. In 2021, the Joe Biden Administration launched its Bailout for America, under the Bailout for America Act of 2021, signed into law in March.
Prime Mining Corp., Tocvan Ventures Corp., Oroco Resource Corp., and Silver Tiger Metals Inc., reported the best drilling intercepts in Mexico on the second week of January, 2023. Details are shown in the table below:
ON EXPLORATION
Aztec Minerals Corp., presented a summary of the results from its recently completed RC and oriented core holes 2022 drilling program at its Cervantes project in Sonora. It consisted of 26 RC holes totalling 5,248.6m, and 11 oriented core holes totalling 2,588m. Combined 2022 drilling program totaled 37 holes and 7,836.6m on California, California Norte, Purisima East and Jasper targets. All the holes collared in 2022 at California and California Norte targets, except one, encountered near surface, oxidized gold mineralization with minor copper values. Now, California target has been expanded to approximately 900m long E-W by 730m wide N-S, and with continuous mineralization of up to 170m depth. “The porphyry gold-copper mineralization is still open in all directions with anomalous mineralization and alteration up to 265m depth vertically. The California and California Norte targets appear to be merging from drilling and surface exposures”. At Jasper target, step out 600m west of the California Zone, the drilling program intercepted broad alteration and strongly oxidized, argillically altered, and brecciated siltstone-quartzite sediments. “Strong copper oxide mineralization is found on outcrops and in the drilling. Sulfides have not yet been found in drilling to 209 m depth, suggesting the there is a possibility to encounter a secondary sulfide enrichment blanket”. “At the Purisima Este target drilling found anomalous Au and multi-element mineralization related to the edges of its diatreme-breccia pipe related to quartz feldspar intrusive and follow-up work is planned”. Drilling highlights of the 2022 program include hole CAL22-001 with 1.04 g/t Au over 94m, including 3.96 g/t Au over 55m, and 0.36% over 55m; hole CAL 22-004 with 1.0 g/t Au over 65m, including 4.25 g/t Au over 24.4m, and 0.065% Cu over 160m; hole CAL 22-005 with 1.49 g/t Au, including 3.42 g/t Au over 51.7m, and 0.091% Cu over 119m; hole CAL 22-006 with 0.75 g/t Au, including 3.08 g/t Au over 9.14m, and 0.1% Cu over 138m; hole 0.87 g/t Au over 152m, including 2.05 g/t Au over 33.5m, and 0.095% Cu over 123m; hole CAL 22-027 with 0.68 g/t Au over 120m, including 1.46 g/t Au over 27m; and hole CAL 22-031 with 0.56 g/t Au over 135m, including 2.29 g/t Au over 12m.
Colibri Resource Corporation completed additional drilling on its Evelyn project in Sonora, which included 3 diamond holes totaling 1,063m, 5 reverse circulation holes totaling 1,205m, and 130 short RC holes totaling 1,548 m to penetrate alluvium and sample the top of bedrock.
Tocvan Ventures Corp., announced results from 3 out of 10 holes drilled at its Picacho project in Sonora. The company reported that hole SRA-22-003 intersected a broad zone of gold, returning 0.3 g/t Au and 0.5 g/t Ag over 48.8m, including 0.51 g/t Au and 0.8 g/t Ag over 27.5m, including 0.71 g/t Au and 1 g/t Ag over 19.8m, including 1.14 g/t Au and 1 g/t Ag over 12.2m, and including 4.73 g/t Au and 2 g/t Ag over 1.5m. Results for the remaining seven drillholes are pending.
Riverside Resources Inc., provided a corporate outlook for 2023 of the company´s growth plans. Highlights include look for a new strategic alliance with a major base metal producer; to drill-test with partner funds at least one project in H1, 2023 (BHP); look for new partnership to advance its La Union property in Sonora after high-grade results in 2022; and farm-out its Cecilia project in Sonora, which has a proposed drilling program to be executed at the property.
Prismo Metals Inc., released results from the remaining holes from its now completed 2022 drill program at its Palos Verdes project, Sinaloa, which consisted of eight holes totalling 2,100m. The best drill intercept was encountered in hole PV-22-17 with 0.43 g/t Au, 115 g/t Ag, 0.28% Cu, 0.47% Pb, and 0.81% Zn (200 g/t AgEq) over a true width (TW) of 3m, including 1.18 g/t Au, 297 g/t Ag, 0.56% Pb, 1.18% Pb, and 1.97% Zn (516 g/t AgEq) over a TW of 1.05m.
ON MINING
Aura Minerals Inc., reported that it produced 28,591 gold equivalent ounces during Q4, 2022 from its Aranzazu mine, Zacatecas.
Alamos Gold Inc., reported Q4 and annual 2022 production results from its Mulatos mine in Sonora, and provided updated three-year production and operating guidance. In Q4, 2022 the company produced 49,100 Oz Au at an average grade of 0.78 g/t Au. Alamos expects to produce over 175K-185K Oz Au at an average grade of 0.73 g/t Au in 2023 with a total cash cost in te range of USD $900-USD $950 per Oz Au; an all included sustaining cost of USD $950-1,000 per Oz Au; a sustaining capital of USD $10M; grow capital of USD $5-10M (a total sustaining and grow capital of USD $19-24M); capitalized exploration of USD $4M; an a total capital expenditures and capitalized exploration of USD $19-24M. Production for 2024 and 2025 is expected to be in the range of 140-150K Oz Au and 110-120K Oz Au respectively.
Altaley Mining Corporation reported pre-production results during mill commissioning at its Tahuehueto property in Durango. Tahuehueto is currently operating one ball mill in a commissioning phase, as part of the initial 500 tonnes per day project, producing precious metals-rich, commercial grade lead and zinc concentrates. The company produced in Q4, 2022 862 tonnes of Pb concentrate with grades of 26.31% Pb, 76.72 g/t Au, and 643 g/t Ag with metallurgical recoveries of 76.68%, 76.72%, and 68.115 respectively; and 878 tonnes of Zn concentrate with grades of 47.51% Zn, 7.5 g/t Au, and 145 g/t Ag with metallurgical recoveries of 54.31%, 13.23%, and 15.12% respectively.
Americas Gold and Silver Corporation reported Q4 and annual year 2022 production from its Cosala mine operation in Sinaloa. It produced 196K Oz Ag, 3.8M Lb Pb, and 10.4M Lb Zn during Q4, 2022, and 636K Oz Ag, 15.3M Lb Pb, and 39.3M Lb Zn in the full-year 2022.
Endeavour Silver Corp., released Q4 and full-year 2022 production results from their Mexican mine operations. Consolidated figures for Q4 and annual 2022, compared to the year 2021 are shown in the table below:
Figures by mine for the period Q4, and full year 2022 are shown in the tables below:
Gatos Silver Inc., announced guidance and Q4 and full year 2022 production results from its 70% owned Cerro Los Gatos, Chihuahua. On te period Q4, 2022 (100% Basis), the company milled 261,929 tonnes of 387 g/t Ag, 3.7% Zn, 1.9% Pb, and 0.3 g/t Au with metallurgical recoveries of 89.6%, 62.7%, 86.3%, and 53.9% respectively, to produce 2.9M Oz Ag, 13.5M Lb Zn, 9.7M Lb Pb, and 1.4K Oz Au. For the full-year 2022, the company reported production of 10.3M Oz Ag, 60.7M Lb Zn, 45.9M Lb Pb, and 5.3K Oz Au. 2022 guidance announced by Gatos Silver was 9.35-9.65M Oz Ag, 58-61M Lb Zn, 43-45M Lb Pb, and 5.0-5.3K Oz Au. Zinc, lead and gold production increased during 2022, with zinc and gold near the high end of guidance, and lead near the guidance midpoint. Compared with 2021, zinc production increased by 22%, lead production by 10%, and gold production by 2%. As of December 2022, the company reported a cash balance of $17M and outstanding balance of the company´s credit facility of $9M.
GoGold Resources Inc., reported Q4, 2022 production results from its Parral Tailings project, Chihuahua. The company produced 159,838 Oz Ag, 2,399 Oz Au, and 497.3K Lb Cu (441,217 Oz AgEq).
Golden Minerals Company announced Q4, and full-year 2022 production and financial results from its Rodeo project, Durango. The company in Q4, 2022 mined 161,244 tonnes and processed 52,736 tonnes of 2 g/t Au and 10 g/t Ag with metallurgical recoveries of 73.3% and 82% respectively, to produce 2,398 payable Oz Au (in doré) and 13,560 payable Oz Ag (in doré) or 2,568 payable Oz AuEq (in doré). Golden sold 2,518 Oz Au and 14,217 Oz Ag (2,696 Oz AuEq), at realized prices, before refining and selling costs of USD $1,729.40 and USD $21.69 respectively. For the full year 2022, Golden mined 771,485 tonnes and processed 195,599 tonnes of 2.6 g/t Au and 11 g/t Ag with metallurgical recoveries of 74.7% and 81.2% respectively, to produce 11,982 payable Oz Au (in doré) and 52,179 payable Oz Ag (in doré) or 12,616 payable Oz AuEq (in doré). Golden sold 12,451 Oz Au and 53,486 Oz Ag (13,101 Oz AuEq), at realized prices, before refining and selling costs of USD $1,805.34 and USD $21.93 respectively.
Torex Gold Resources Inc., reported Q4 and full-year 2022 production results from El Limón-Guajes mine complex, Guerrero. The company produced 116,196 Oz Au in Q4 to total 474,035 Oz Au in the full-year 2022. It surpassed the upper end of the guided range of 430K-470K Oz Au. Torex sold in Q4, 2022 121,913 Oz Au for a total of 473,122 Oz Au in the full-year 2022.
ON FINANCING
Canuc Resources Corporation issued 8.5M of common shares at a price of CAD $0.08 per common share to close a non-brokered private placement for gross proceeds of CAD $680K. Most of the gross proceeds will be used for exploration on the San Javier project, Sonora.
Guanajuato Silver Company Ltd., closed the second and final tranche of its non-brokered private placement offering. The company issued 4,080,486 common shares for gross proceeds of CAD $1,734,206.55 in the second tranche for a total offering of CAD $20,032,682 for gross proceeds of CAD $ 8,513,889.85. The net proceeds of the offering will be used to, among other things, ramp up production at the Company’s existing mines in and about Guanajuato, Mexico including El Cubo, San Ignacio and Valenciana, expand and modernize the processing facilities at the Topia mine in Durango, Mexico, increase brownfields’ exploration programs, and fund general and administrative expenses.
Fabled Silver Gold Corp., announced that it plans to complete a non-brokered private placement for gross proceeds of up to CAD $1.5M at a price of CAD $0.10 per common share. Net proceeds will be used to make required property payments, to further explore the Santa Maria Property, and for general working capital.
Altaley Mining Corporation entered into a debt settlement agreement with an arms’ length mining contractor to settle CAD $1,176,297 which is owing to the contractor as a result of underground mine development work. The Company and the contractor have agreed that the issuance to the contractor of 735,186 common shares of the company at a deemed price of CAD $1.60 per common share will extinguish and settle the debt.
ON RESOURCES AND DEVELOPMENT
Regency Silver Corp., announced recommencement of the 2023 drilling program at its Dios Padre property in Sonora, as well as the commencement of an IP survey. The company plans to drill a minimum of 3,000m as an initial follow up to the successful drilling program completed in August, 2022. It also will commence an IP survey to provide 3D information to a depth of 800m. “The current drill and IP program is designed to determine more specifically what type of broad, mineralizing system is present at Dios Padre”.
Discovery Silver Corp., outlined its 2023 work program and budget for its Cordero property in Chihuahua. The goal is to complete the Pre-Feasibility Study (PFS) later this month and will be focused on optimization opportunities including improved mining and processing efficiencies, as well as complete a Feasibility Study (FS) in Q1, 2023.. Alongside this work, Cordero has allocated drill metres to the exploration potential on the large, highly-prospective land package owned by the company. “Construction permitting for Cordero will be undertaken in-parallel with the FS work, with the submission of the Environmental Impact Statement (MIA) expected to be made to the Mexican Federal Environmental Department (SEMARNAT) in the first half of 2023. Assuming a 12 to 18 month permitting timeline, this would position the Company to make a construction decision in the second half of 2024. The 2023 work programs are budgeted at $26 million. The Company is well positioned to fund this work with a cash balance of over $45 million and no debt at the end of 2022.
Oroco Resource Corp., released further assay results from the North Zone drilling program at its Santo Tomas project in Sinaloa. Holes N039 to N043 totalled 2,668 m of drilling which demonstrated continuity of good grade mineralization. Highlights include hole NO39 with 0.14% Cu, 0.002% Mo, 0.01 g/t Au and 1 g/t Ag (0.15% CuEq) over 58m, plus 0.46% Cu, 0.005% Mo, 0.016 g/t Au, and 4 g/t Ag (0.49% CuEq) over 21.4m, plus 0.31% Cu, 0.01% Mo, 0.02 g/t Au and 2 g/t Ag (0.36% CuEq) over 265m; hole NO40 with 0.21% Cu, 0.007% Mo, 0.012 g/t Au, and 2 g/t Ag (0.24% CuEq) over 41m, plus 0.29% Cu, 0.009% Mo, 0.013 g/t Au, and 3 g/t Ag (0.33% CuEq) over 152.1m; hole N041 with 0.3% Cu, 0.002% Mo, 0.003 g/t Au, and 1 g/t Ag (0.35% CuEq) over 20.6m, plus 0.47% Cu, 0.006% Mo, 0.038 g/t Au, and 2 g/t Ag (0.52% CuEq) over 96m; and hole N042 with 0.53% Cu, 0.005% Mo, 0.075 g/t Au, and 3 g/t Ag (0.60% CuEq) over 135m.
Prime Mining Corp., presented results from 48 drill holes collared in the Z-T area at its Los Reyes project, Sinaloa. Drilling highlights include holes 22TA-51 with 2.5 g/t Au and 278 g/t Ag (6.1 g/t AuEq) over a true width (TW) of 3,1m, plus 10 g/t Au and 131 g/t Ag (11.6g/t AuEq) over a TW of 3.1m, including 28.5 g/t Au and 310 g/t Ag (32.5 g/t AuEq) over a TW of 1.1m; hole 22ZAP-87 with 4.7 g/t Au and 103 g/t Ag (6 g/t AuEq) over a TW of 8.7m, including 39.6 g/t Au and 174 g/t Ag (41.9 g/t AuEq) over a TW of 0.7m, and 8.6 g/t Au and 163 g/t Ag (10.7g/t AuEq) over a TW of 1.0m; hole 22TA-44 with 2.7 g/t Au and 451 g/t Ag (8.6 g/t AuEq) over a TW of 4.8m, including 4.8 g/t Au and 821 g/t Ag (15.4 g/t AuEq) over a TW of 2.3m; hole 22 ZAP-82 with 1.3 g/t Au and 22 g/t Ag (1.6 g/t AuEq) over a TW of 13m, including 13 g/t Au and 48 g/t Ag (13.6 g/t AuEq) over a TW of 0.8m, plus 3.6 g/t Au and 20 g/t Ag (3.8 g/t AuEq) over a TW of 13.8m,including 22.2 g/t Au and 41 g/t Ag (22.8 g/t AuEq) over a TW of 1.9m; hole 22TA-43 with 4.2 g/t Au and 59 g/t Ag (4.9 g/t AuEq) over a TW of 5.4m, including 23.6 g/t Au and 103 g/t Ag (24.9 g/t AuEq) over a TW of 0.8m; and hole 22SMW-12 with 6.9 g/t Au and 33 g/t Ag (7.3 g/t AuEq) over a TW of 14.8m, including 9.1 g/t Au and 31 g/t Ag (9.5 g/t AuEq) over a TW of 8.9m, including 21 g/t Au and 55 g/t Ag (21.7 g/t AuEq) over a TW of 1.5m.
Silver Tiger Metals Inc., released results from its ongoing drilling program being conducted at its El Tigre project, Sonora. Drilling highlights include hole ET-22-333with 0.46 g/t Au, 429 g/t Ag, 0.07% Cu, 0.04% Pb, and 0.06% Zn (474 g/t AgEq) over 10.1m on Seitz Kelly Shale Zone, including 0.83 g/t Au, 3,639 g/t Ag, 0.61% Cu, 0.14% Pb, and 0.14% Zn (3,767 g/t AgEq) over 1.2m, including 0.22 g/t Au, 6,063 g/t Ag, 1% Cu, 0.14% Pb, and 0.09% Zn (6,182 g/t AgEq) over 0.7m; hole ET-22-333 with 0.14 g/t Au, 307 g/t Ag, 0.07% Cu, 0.2% Pb, and 0.2% Zn (337 g/t AgEq) over 2.4m on El Tigre Vein, including 0.32 g/t Au, 778 g/t Ag, 0.17% Cu, 0.4% Pb, and 0.6% Zn (849 g/t AgEq) over 0.9m, plus 0.25 g/t Au, 69 g/t Ag, 0.13% Cu, 0.5% Pb, and 1% Zn over 18.6m on the Seitz Kelly Shale Zone, including 0.25 g/t Au, 778 g/t Ag, 1.69% Cu, 7.1% Zn, and 15% Zn (1,633 g/t AgEq) over 1.1m on the Seitz Kelly Vein; and hole ET-22-335 with 0.15 g/t Au, 331 g/t Ag, 0.24% Cu, 0.2% Pb, and 0.5% Zn (386 g/t AgEq) over 4.3m on Seitz Kelly Vein, including 0.15 g/t Au, 2,343 g/t Ag, 1.67% Cu, 1.36% Pb, and 3.32% Zn (2,658 g/t AgEq) over 0.6m.
Sailfish Royalty Corp., announced results from its recently exploration work conducted at its Gavilanes property in Durango. Gavilanes comprises multiple high-grade polymetallic silver veins located approximately 30 km away from First Majestic’s San Dimas mine operation. Sailfish has drilled 47 shallow diamond drill holes on three of these veins which host mineralization in veins and stockworks of an intermediate sulphidation epithermal system. Sailfish geologists have collected representative chip channel samples across veins or structures, which returned encourages high-grade values. Highlights include 12.80 g/t Au and 48 g/t Ag over 2.5m and 0.87 g/t Au and 40 g/t Ag over 18m on Descubridora Vein; 30 g/t Au and 190 g/t Ag over 1m and 0.84 g/t Au and 754 g/t Ag over 2m on San Nicolas Vein; 0.02 g/t Au and 1,867 g/t Ag over 1m on San Nicolas-Veta del Pueblo; 10.12 g/t Au and 16 g/t Ag over 2.2m on Forasteros Vein; and 0.51 g/t Au and 1,546 g/t Ag over 0.51m pon La Cruz Vein. Gavilanes currently has an inferred mineral resource of 2.833M tonnes at an average grade of 246 g/t AgEq (22.4M Oz AgEq). This inferred mineral resource is highlighted by having 18.9M Oz Ag at an average grade of 207 g/t Ag.
Silver Viper Minerals Corp., reported positive geophysical and geochemical survey results at its Virginia project, Sonora. Detailed mapping and geochemical sampling following a TITAN MT deep penetrating Geophysical survey conducted in Q2, 2022 identified new targets at El Molino, along the Macho trend. “Geological mapping and rock and chip-channel sampling has outlined new targets at Los Cantiles, El Oriental and the eastern and southern sectors of Macho Libre. The new prospecting area, Los Cantiles, garnered surface chip channel sample results up to 5.7 g/t Au and 148 g/t Ag. Dump samples up to 17.8 g/t Au and 1,001 g/t Ag, and chip-channel samples up to 4.2 g/t Au and 310 g/t Ag, have been located at the El Oriental Target. Hydrothermal silicified breccia with up to 2.36 g/t Au and 71 g/t Ag has been outlined at the Macho Libre Target. At El Molino, several new structures have been outlined, containing breccias with quartz boiling type textures, with initial results up to 1.6 g/t Au and most analytical results pending. At El Molino, ongoing soil sampling reveals continuous gold and silver anomalies, with supportive infill results from north-west to south-east along the trend”.
ON DEALS AND CORPORATE ISSUES
Santacruz Silver Mining Ltd., announced the appointment of its new CFO and Corporate Secretary of the Company effective January 9, 2023 (Zimapan property, Hidalgo).
Excellon Resources Inc., announced that its Board of Directors has approved the voluntary delisting of its common shares from the New York Stock Exchange (NYSE)and the deregistration with the U.S. Securities and Exchange Commission (SEC) (La Platosa mine, Durango).
Fabled Silver Gold Corp´s shareholders approved a share consolidation of the outstanding securities of the Company on an up to ten for one basis. The board of directors of the company has now determined to proceed with the consolidation on a five to one basis. As of today’s date, the company has 215,446,649 common shares issued and outstanding. Following the completion of the consolidation (but before giving effect to the offering), the number of issued and outstanding common shares of the company will be approximately 43,089,330. (Santa Maria property, Chihuahua).
Vizsla Silver Corp., completed strategic investment in the acquisition of Palos Verdes project, Sinaloa from Prismo Metals Inc. Vizsla acquired a right of first refusal to purchase the Palos Verdes project from Prismo, and 4M units of Prismo at a price of $0.50 per Prismo unit, for aggregate consideration of $2M. Each Prismo unit consist of one common share of Prismo and one-half of one common share purchase warrant. Each Prismo Warrant entitles Vizsla to purchase one additional Prismo Share for a period of two years from the closing date at a price of $0.75.The consideration for the Strategic Investment consisted of a cash payment of $500K and the issuance to Prismo of 1M common shares of Vizsla. The Consideration Shares are subject to a statutory hold period of four months and one day, and a voluntary escrow period of 24 months with 25% of the securities released every six months.
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 displaying slickensides in a Mn-Fe hydrothermal breccia in a project in Chihuahua, Mexico. Photo by Miguel A Heredia.
During the 50th week of the year (December 12th to December 18th, 2022), at least 20 press releases were announced by companies working in Mexico with six informing on exploration results, five reporting resources and developments of their properties, five announcing financing issues, two commenting on Mexican issues, and two disclosing deals and corporate issues. ON MEXICO ISSUES, Trafigura announced that along with eFactor Network and a number of financing institutions are piloting a Sustainable Supply Chain Finance Program for mining companies in Mexico. GR Silver, Vizsla, Mammoth, GoGold, and Almadex reported the best drilling intercepts in Mexico on the third week of December, 2022. ON EXPLORATION, In Sonora, Aztec released final results from its 2021-2022 drilling program at its Cervantes project, and Minaurum provided an update on its optioned Adelita project. In Chihuahua, Mammoth presented results from six holes from its 27 holes diamond drilling program at its Tenoriba project, and Southern Empire has initiated the field exploration program work on its recently optioned Centauro property. In Coahuila, Monumental completed reconnaissance exploration program and defined drill targets at its Jemi Rare Earth Element project. In Jalisco, Almadex released results from the second hole drilled in 2022 at its San Pedro project. Minaurum provided and update on its optioned Taviche mining property. ON MINING, no relevant news. ON FINANCING, Guanajuato Silver announced a non-brokered listed issuer financing exemption private placement for gross proceeds of CAD $7.5M, subject to a minimum offering for gross proceeds of CAD $3M (El Cubo, San Ignacio, and Valenciana mines, Guanajuato). Prismo Metals closed its previously announced brokered private placement for gross proceeds of $3,016,000 (Palos Verdes project, Sinaloa). Tarachi announced a non-brokered private placement for gross proceeds of up to CAD $500K (Magistral Mill and tailings project, Durango). Fortuna announced that it has amendment its existing senior secured revolving credit facility to increase the maximum facility amount by USD $50M to USD $250M (San Jose Mine, Oaxaca). Regency Silver announced a non-brokered private placement for gross proceeds of CAD $2M (Dios Padre Project, Sonora). ON RESOURCES AND DEVELOPMENT, GoGold presented results of nine holes from its ongoing drilling program at its Los Ricos North project, Jalisco. GR Silver announced additional results from its 2022 underground infill drilling program at its Plomosas mine area in Sinaloa. Vizsla Silver Corp., released results from nineteen new drill holes targeting the Tajitos-Copala resource area at its Panuco project, Sinaloa. Tocvan announced plan to collect a bulk sample from its El Pilar project in Sonora. Silver Dollar reported progress on its new underexplored Noria target at its La Joya project, Durango. ON DEALS AND CORPORATE ISSUES, Osisko Development strengthened its Board of Directors with the appointment of a new Non-Executive Director, effective December 14, 2022 (San Antonio Gold project, Sonora). Sierra Metals completed voluntary delisting from the Lima Stock Exchange (Cusi and Bolivar mines, Chihuahua). Southern Empire entered into an option agreement to acquire 100% interest in the Centauro property in Chihuahua. ON SOCIAL RESPONSIBILITY, no relevant news.
ON MEXICO ISSUE
Trafigura Pte Ltd., announced that along with eFactor Network and a number of financial institutions are piloting a Sustainable Supply Chain Finance Program for mining companies in Mexico. The Program, the first of its type and providing a model that can be scaled across the region, is structured to improve mining companies’ working capital whilst driving responsible sourcing practices along the metals value chain.
GR Silver Mining Ltd., Vizsla Silver Corp., Mammoth Resources Corp., GoGold Resources Inc., and Almadex Minerals Ltd., reported the best drilling intercepts in Mexico on the third week of December, 2022. Details are shown in the table below:
ON EXPLORATION
Aztec Minerals Corp., released final results from its 2021-2022 drilling program at its Cervantes project. The 2022-2022 drilling program consisted of 27 RC totaling 5,249m, and 11 oriented core totaling 2,558.5m for a total combined amount drilled of 7,837.5m in 37 drill holes on the California Zone, California Norte, Jasper, and Purisima Este targets. It was successful in intercepting strong mineralization, as well as in expanding the targets. “The multi-element ICP values support the exploration model of the California zone being at the highest portion of a porphyry system, where an overlying high sulfidation zone has been eroded away”. Results of this drilling program are currently being analyzed in order to refine future targeting.
Minaurum Gold Inc., provided an updated on its Adelita project in Sonora, which is under an option agreement with Infinitum Copper Corp. Infinitum has identified five main target areas of which Cerro Grande is being drilled and plans to drill Las Trancas target soon. Significant mineralization has been intersected at Cerro Grande target in hole AD-22-0018 with 1.91% Cu, 2 g/t Au, and 41 g/t Ag over a true width (TW) of 20.6m; and hole AD-22-0019 with 1.01% Cu, 0.52 g/t Au, and 40 g/t Ag over a TW of 32.25m, including 1.68% Cu, 0.83 g/t Au, and 59 g/t Ag over a TW of 17.05m. Cerro Grand Target is a mineralized zone of up to 36m thick, over 250m deep and has a strike 200m.
Mammoth Resources Corp., presented results from six holes for a total of 620.7m from its 27 holes diamond drilling program at its Tenoriba project in Chihuahua. Highlights of the drilling include hole TEN21-22 collared on Carneritos Zone with 0.98 g/t Au and 10 g/t Ag (1.12 g/t AuEq) over 3m, and 0.57 g/t Au and 8 g/t Ag (0.68 g/t AuEq) over 10.5m; and hole TEN21 -24 with 1.14 g/t Au and 75 g/t Ag (1.13 g/t AuEq) over 39m, including 5.28 g/t Au and 13 g/t Ag (5.45 g/t AuEq) over 3m, including 1.45 g/t Au and 11 g/t Ag (1.60 g/t AuEq) over 9m, plus 0.46 g/t Au and 2 g/t Ag (0.48 g/t AuEq) over 42m, including 1.21 g/t Au and 5 g/t Ag (1.28 g/t AuEq) over 12m. These six holes bring the total meters drilled in the recent phase to 3,244.25m in twenty seven holes.
Southern Empire Resources Corp., has initiated the field exploration program work on its recently optioned Centauro property. The company contracted PhotoSat Information Ltd to provide maps of alteration mineral suites typically associated with epithermal precious metal deposits, using their proprietary processing methods for16 band WorldView-3 and high-resolution ASTER satellite optical spectral data. Results of the PhotoSat studies show significant trends highlighting argillic, sericite, and chlorite alteration. Southern also collected 396 soil samples at 50m spacing along E-W lines, spaced 100-200m apart to cover a zone of prospective alteration and mineralization over 4km strike length. Assays are pending.
Monumental Minerals Corp., completed reconnaissance exploration program, which consisted of detailed geological mapping, regional stream sediment sampling, ground radiometric geophysical surveys, and lithogeochemical sampling to delineate discreet drill targets at its Jemi Rare Earth Element project. To date, 37 whole-rock analytic results from rocks collected at the Jemi project of which 11 have returned values greater than 0.15% total Rare Earth Oxide (TREO), including six samples that returned values greater than 0.23% TREO and up to 0.43% TREO. Results for 269 samples are still pending to arrive. Heavy rare earth oxide (HREO) values (include dysprosium (Dy) and terbium (Tb)), ranged between 1614 ppm and 39 ppm in peralkaline pegmatites, averaging 447 ppm. Six samples exceeded 680 ppm, including three that exceeded 830 ppm. Light rare earth oxides (LREO) values including neodymium (Nd) and praseodymium (Pr), returned values up to 0.26% and 0.23%, with values in trend with HREO concentrations suggesting similar REE-hosting phases in the peralkaline rock samples. “Geological mapping has confirmed that samples with the highest TREO and HREO values are from pegmatitic bodies. Three-dimensional airborne magnetics modeling show that surface pegmatite bodies are spatially associated with a numerous larger magnetic anomalies at depth that may represent potential source intrusions. Specific drill locations will target these pegmatites”.
Almadex Minerals Ltd., released results from the second hole drilled in 2022 at its San Pedro project in Jalisco. Hole SP-22-004 intersected 846 /t Au over 1.3m. The current drilling program intends to better understand the orientation and distribution of the breccia zone so that further, more focused drilling can eventually be carried out.
Minaurum Gold Inc., provided an updated on its Taviche project in Oaxaca, which is under an option agreement with Fortuna Silver Corp. Fortuna is currently focused on the re-negotiation of surface rights to be followed by drill permits. “Review of historic data and field mapping over the last year identified the possible continuation of the Mezcal Fault for 3km to the northwest. Drill targeting is in progress along the Mezcal Fault to test for both Mezcal-style gold mineralization and silver bonanza style mineralization associated with jasperoid-related mantos”. Another goal is to develop additional concepts to test the potential at depth at the Cerro La Mina Zone where a drill hole encountered 235 g/t Ag and 0.19 g/t Au over 46.3m.
ON MINING
No relevant news.
ON FINANCING
Guanajuato Silver Company Ltd., announced a non-brokered listed issuer financing exemption private placement of up to 17,647,059 units at CAD $0.425 for gross proceeds of CADS $7.5M, subject to a minimum offering of 7,058,824 units for gross proceeds of CAD $3M. Gross proceeds will be used to ramp up production at El Cubo, San Ignacio, and Valenciana mines in Guanajuato; expand and modernize the processing facilities at the Topia mine in Durango; increase brownfield exploration programs across all company´s projects; and fund general working capital expenses and strengthen Guanajuato Silver’s balance sheet.
Prismo Metals Inc., closed its previously announced brokered private placement for gross proceeds of $3,016,000. The gross proceeds will be used to continue drilling at its Palos Verdes project in Sinaloa, and to continue the mapping and sampling at its Pavitos project in Sonora, as well as to conduct an initial diamond drilling program.
Tarachi Gold Corp., announced a non-brokered private placement of up to 10M units at a price of CAD $0.05 per unit for gross proceeds of up to CAD $500K. The gross proceeds will be used for exploration, working capital purposes, and for the ongoing development of the Company’s Magistral project in Mexico including, but not limited to, metallurgical test work, final design and permitting.
Fortuna Silver Mines Inc., announced that it has amendment its existing senior secured revolving credit facility to increase the maximum facility amount by USD $50M to USD $250M (San Jose Mine, Oaxaca).
Regency Silver Corp., announced a non-brokered private placement of 10M common shares at a price of CAD $0.20 per share for gross proceeds of CAD $2M. Net proceeds will be used for work programs including drilling and geophysics in its flagship Dios Padre project, Sonora, as well as for general working capital.
ON RESOURCES AND DEVELOPMENT
GoGold Resources Inc., presented results of nine holes from its ongoing drilling program collared at El Favor East deposit within its Los Ricos North project, Jalisco. Highlights of the drilling include hole LRGF-22-140 with 1.39 g/t Au and 139 g/t Ag (3.24 g/t AuEq or 243 g/t AgEq) over 2.5m, plus 0.48 g/t Au and 257 g/t Ag (3.92 g/t AuEq or 294 g/t AgEq) over 13.9m, including 1.84 g/t Au and 960 g/t Ag (14.65 g/t AuEq or 1,099 g/t AgEq) over 3.2m, including 2.96 g/t Au and 2,307 g/t Ag (33.72 g/t AuEq or 2,529 g/t AgEq) over 0.7m; and hole LRGF-22-137 with 0.29 g/t Au and 143 g/t Ag (2.2 g/t AuEq or 165 g/t AgEq) over 61.5m, including 0.66 g/t Au and 300 g/t Ag (4.66 g/t AuEq or 350 g/t AgEq) over 24.3m, including 1.71 g/t Au and 881 g/t Ag (13.46 g/t AuEq or 1,009 g/t AuEq) over 0.7m.
GR Silver Mining Ltd., announced additional results from its 2022 underground infill drilling program at its Plomosas Mine Area in Sinaloa. Highlights of the drilling include hole PLIP22-28 with 55 g/t Ag, 8.66 g/t Au, 2.7% Pb, 6.6% Zn, and 0.5% Cu (1,242 g/t AgEq) over a true width (TW) of 6.9m; hole PLI17-26 with 3 g/t Ag, 2.64 g/t Au, 0.1% Pb, and 0.1% Zn (257 g/t AgEq) over a TW of 10.7m; hole PLI22-42 with 43 g/t Ag, 1.96 g/t Au, 1.2% Pb, 2.1% Zn, and 0.3% Cu (369 g/t AgEq) over a TW of 20.9m, including 61 g/t Ag, 4.52 g/t Au, 2.9% Pb, 5.5% Zn, and 0.3% Cu (802 g/t AgEq) over a TW of 7.5m, plus 28 g/t Ag, 3.6 g/t Au, 0.6% Pb, 2.3% Zn, and 0.2% Cu (489 g/t AgEq) over a TW of 10.6m, including 46 g/t Ag, 11.5 g/t Au, 0.2% Pb, 3.7% Zn, and 0.4% Cu (1,263 g/t AgEq) over a TW of 2m, plus 87 g/t Ag, 7.13 g/t Au, 4.4% Pb, 8.3% Zn, and 0.2% Cu (1,184 g/t AgEq) over a TW of 0.8m, plus 42 g/t Ag, 3.90 g/t Au, 0.3% Pb, 1.2% Zn, and 0.2% Cu (479 g/t AgEq) over a TW of 1.7m, plus 28 g/t Ag, 6.05 g/t Au, 0.7% Pb, 1.9% Zn, and 0.1% Cu (695 g/t AgEq) over a TW of 1.5m; hole PLI22-47 with 281 g/t Ag, 2.15 g/t Au, 8.9% Pb, and 6% Zn (970 g/t AgEq) over a TW of 2.4m; and hole PLI22-46 with 44 g/t Ag, 1.9 g/t Au, 11.2% Pb, 10% Zn, and 0.1% Cu (940 g/t AgEq) over a TW of 4.9m, including 64 g/t Ag, 4.02 g/t Au, 19.5% Pb, 17% Zn, and 0.1% Cu (1,659 g/t AgEq) over a TW of 1.9m. “The infill drilling program at the Plomosas Mine Area continues to provide information for the Company to enhance the geological model and confirm the presence of high-grade structures on the hanging wall and footwall of the main mineralized breccia. Gold mineralized zones exceeding 20 m down hole width have been drilled in the current program in both the hanging wall and footwall”.
Vizsla Silver Corp., released results from nineteen new drill holes targeting the Tajitos-Copala resource area at its Panuco project, Sinaloa. Highlights of the drilling include hole CS-22-205 with 2,101 g/t Ag and 9.54 g/t Au (2,640 g/t AgEq) over a true width (TW) of 5.30m, including 3,080 g/t Ag and 23.60 g/t Au (4,563 g/t AgEq) over a TW of 0.58m, plus 85 g/t Ag and 0.24 g/t Au (96 g/t AgEq) over a TW of 0.16m; hole CS-22-210 with 425 g/t Ag and 2.31 g/t Au (561 g/t AgEq) over a TW of 15.50m, including 2,710 g/t Ag and 22.30 g/t Au (4,125 g/t AgEq) over a TW of 0.41m, including 1,285 g/t Ag and 7.24 g/t Au (1,716 g/t AgEq) over a TW of 0.54m, including 1,800 g/t Ag and 9.69 g/t Au (2,371 g/t AgEq) over a TW of 0.41m, including 1,630 g/t Ag and 7.34 g/t Au (2,044 g/t AgEq) over a TW of 1.01m; hole CS-22-216 with 626 g/t Ag and 4.48 g/t Au (905 g/t AgEq) over a TW of 8.09m, including 1,250 g/t Ag and 14 g/t Au (2,170 g/t AgEq) over a TW of 0.81m, including 2,230 g/t Ag and 18.1 g/t Au (3,376 g/t AgEq) over a TW of 0.57m, including 1,170 g/t Ag and 7.54 g/t Au (1,631 g/t AgEq) over a TW of 0.75m; hole CS-22-201 with 237 g/t Ag and 1.74 g/t Au (346 g/t AgEq) over a TW of 2.18m, including 427 g/t Ag and 3.22 g/t Au (629 g/t AgEq) over a TW of 1.11m, plus 2,536 g/t Ag and 13.65 g/t Au (3,340 g/t AgEq) over a TW of 1.86m, including 7,740 g/t Ag and 57.6 g/t Au (11,343 g/t AgEq) over a TW of 0.19m, including 6,220 g/t Ag and 27.20 g/t Au (7,742 g/t AgEq) over a TW of 0.43m; and hole CS-22-217 with 1,496 g/t Ag and 6.56 g/t Au (1,862 g/t AgEq) over a TW of 2.71m, including 1,295 g/t Ag and 4.59 g/t Au (1,535 g/t AgEq) over a TW of 0.64m, including 13,118 g/t Ag and 63.7 g/t Au (16,783 g/t AgEq) over a TW of 0.20m. “The infill results support grade continuity in the south-central portion of Copala structure, while resource expansion drilling to the north and southeast continue to highlight mineralization remains open”.
Tocvan Ventures Corp., entered into an agreement with a neighboring private mining company for the completion of its first bulk sampling for processing by heap-leach method from its El Pilar project in Sonora. The plan is to process up to 1,000 tonnes of material at a private mining operation less than 25km to the west of Pilar with the aim of providing a more detail account of expected head-grade and recovery percentage of gold. Processing and analysis of this bulk sample is expected to span three to four months. Other goals to accomplish are to continue drilling, update reporting and maiden resource estimate, and permitting for full-scale on-site mine facilities and processing.
Silver Dollar Resources Inc., reported progress on its new underexplored Noria target at its La Joya project, Durango. The company recently completed a ground magnetic survey on the Coloradito area within the Noria portion of the property, which consisted of 14 lines spaced 50-100m and ranging over 1.3km in length for a total of approximately 19.8km of magnetic data. The geophysics contractor identified 3 relatively well-contrasted and thin magnetic beds striking N150°/N330°, which may underscore, sulphide and ferromagnesian horizons hosted along shear zones. In addition, a total of 125 rock samples have been collected and submitted to the lab of which 79 samples have been received to date. In one of the targets sample assays returned values up to 291 g/t Ag, 0.8 g/t Au, and 1.2% Zn, while in another one 7 samples returned elevated Zn and Pb, ranging from 0.3-1% and 1.4-6.2% respectively. Further follow-up work is being conducted in the areas where both geophysical and geochemical anomalies have been identified to develop new drill targets.
ON DEALS AND CORPORATE ISSUES
Osisko Development Corporation strengthened its Board of Directors with the appointment of a new Non-Executive Director, effective December 14, 2022 (San Antonio Gold project, Sonora).
Sierra Metals Inc., completed voluntary delisting from the Lima Stock Exchange, effective December 15, 2022. Sierra Metals’ common shares will continue to trade on the Toronto Stock Exchange (Cusi and Bolivar mines, Chihuahua).
Southern Empire Resources Corp., entered into an option agreement to acquire 100% interest in the Centauro property in Chihuahua. Southern can earn 100% interest by making cash payments totalling USD $750K, issuing 1.5M common shares of Southern Empire and completing work commitment of USD $800K over a five years period. The option agreement include a 3% Net Smelter Return (NSR) and Southern Empire has the right to buy 2% of the NSR for USD $2M.
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On the picture above, panning gold in a cow´s horn in a low sulphidation epithermal vein system project in Zacatecas, Mexico. Photo by Miguel A Heredia.
