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

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By Jorge Cirett

During the 28th week of the year (July 8th to July 14th, 2019), at least 27 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, Camimex announced investments for US$2,705 M on new gold projects from 2019 to 2024. The same organism informed Mexico’s gold production declined 6.7% between 2017 and 2018. ON EXPLORATION, In Baja California, One World Lithium released results from drilling at Salar del Diablo. In Sonora, Magna Gold started its phase one exploration program at its Mercedes project on the Santa Rosa de Yecora district. In Chihuahua, Sable Resources received the drilling permit for its Vinata project. In Coahuila, Discovery Metals received the drilling permit for its Monclova project. In Guanajuato, Fresnillo explores near Mineral de La Luz. ON MINING, Torex Gold, Coeur Mining, Great Panther, GoGold Resources and Endeavour Silver presented production results for the second quarter of 2019. ON FINANCING, Mexican Gold Corp, Impact Silver, One World Lithium, Oceanus Resources, Silver One Resources, Advance Gold and Millrock undertook or completed tranches of financing rounds for a combined $13.45 M. Evrim Resources granted 1 M stock options to an officer. ON RESOURCES AND DEVELOPMENT, SilverCrest Metals filed the PEA on Las Chispas, Sonora. VVC Exploration received the environmental permit  and a land use change permit for its Samalayuca project in Chihuahua. SilverCrest Metals released high grade results from underground sampling of the Babicanora vein at Las Chispas, Sonora. Goldplay released good gold results from trenching on an extension of the Nava zone on its San Marcial project in Sinaloa. ON DEALS AND CORPORATE ISSUES, Orex Minerals and Pan American Silver entered into an agreement to negotiate a formal JV agreement on the Sandra Escobar project in Durango. Oroco Resources signed a letter of agreement to acquire the 766 ha. Rossy concession adjacent to Oroco’s land package on the Santo Tomas district in Sinaloa.

ON MEXICO ISSUES

  • Camimex (Cámara Minera de México), informed on a list of new gold producing projects that involve the investment of US$2,705 M between 2019 and 2024. Among the biggest investments are those of Torex Gold (US$482 M) in Media Luna, Guerrero; Grupo Mexico’s (US$413 M) Buenavista Zinc in Sonora and Fresnillo’s (US$350 M) Orisyvo in Chihuahua. Other investments include the second dynamic leaching plant at La Herradura; the Pyrites plant in Fresnillo; Goldcorp’s Pyrite plant in Peñasquito, Zacatecas; and Endeavour’s El Compas in Zacatecas; Candelaria Mining is to start operations at Pinos, Zacatecas; Mag Silver and Fresnillo are to begin production at Juanicipio, Zacatecas; Telson Resources is to finish construction of the mine at Tahuehueto, Durango; Hecla’s will continue with open pit and then underground operations at San Sebastian, Durango.
  • Camimex stated that during 2018 Mexico’s gold production diminished 6.7% compared with 2017, reaching 3.8 M Oz Au. Five companies produced more than half of the overall gold production in 2018: Fresnillo (24.1%), Torex Gold (9.3%), Agnico Eagle (8.5%), Goldcorp (7.1%) and Minera Frisco (6.5%) (Editor’s note.- This last company has the dubious honor of being the most opaque for disclosing production, reserves and resources from its projects in Mexico).

ON EXPLORATION

  • Sable Resources Ltd. has received the permit needed to drill the Vinata project in Chihuahua. The surface agreements have been approved by the local community for an initial 2,500 m diamond drill program “to test the vertical continuity and mineral zoning along a section of the Vinata vein system where the veins are observed outcropping over 1000 m along strike”. Sable will contract a ground electromagnetic survey (CSAMT) to better define the vein system at depth and the contacts between a felsic dome and volcanic and sedimentary rocks. The mineralisation at Vinata occurs as a series of quartz veins that outcrop for 1,200 m, with multiple sub-parallel veins and stockwork zones over a width of 15 to 170 m, with individual veins ranging to up to 12 m in width.
  • One World Lithium Inc. released results from drilling at its Salar del Diablo property in Baja California (there is not a state named Baja California Norte in Mexico). The drill holes did not reach the target depths due to “the constant sluffing of sand, presence of multiple clay formations, unconsolidated gravel and rubble”. The highest lithum grade in sediment samples was 273 ppm Li, whereas the water samples are thought to have been diluted by the injection of significant amounts of fresh water while drilling. The Company intends to resume its 4,250 foot drilling program before the end of September 2019.
  • Discovery Metals Corp. has been granted drilling permits for its Monclova project in Coahuila. “The Real Viejo area is the key near-term target. It hosts five historic shallow underground mines along a strike of 1.5km at a limestone-intrusive rock contact”, with rock channel samples averaging 277 gpt Ag, 6.7% Zn, 1.9% Pb. The Real Viejo area is 2 square-km in size and is located along the southern contact of the Monclova intrusive complex, where a series of Ag-ZnPb mineralised, silica-rich vein, replacement bodies (mantos), skarn-altered embayment zones and breccias 2-10 m wide are located.
  • Fresnillo Plc. is realizing exploration work in the Guanajuato district, mainly near Mineral de La Luz.
  • Magna Gold Corp. initiated its phase one exploration program on the Mercedes project in Sonora. The aim on this phase is to confirm the existence (suggested by historical drilling) of an oxide zone of quartz stockwork Au-Ag mineralisation 60 m wide and 220 m long, and a surface study including geological mapping of a 500 ha zone and  systematic rock chip and soil geochemical surveys.

ON MINING

  • Torex Gold Resources Inc. reported Q2 2019 gold production of 113,600 Oz Au at its Limon-Guajes mine in Guerrero. Plant throughput averaged 11,670 tonnes per day (tdp), underground mine production was 1,280 tpd, open pit ore production was 18,600 tpd and the open pit strip ratio was 6.8:1.
  • Coeur Mining Inc. announced second quarter 2019 production. At Palmarejo, in Chihuahua, 447.7 K tonnes were milled @ 2.18 gpt Au, 147.4 gpt Ag, with recoveries of 87.7% Au, 81.8% Ag to produce 28,246 Oz Au, 1.7 M Oz Ag. Production at the La Nacion deposit began and is anticipated to add 400 tpd of mill feed.
  • Great Panther Mining Ltd. presented second quarter 2019 results including figures from its Mexican operations. At Topia, in Durango 18.4 K tonnes were processed @ 392 gpt Ag, 1.01 gpt Au, recovering 93.9% Ag, 58.9% Au to produce 218 K Oz Ag, 353 Oz Au, 453 tonnes Pb, 575 tonnes Zn. At the Guanajuato mine Complex, solely from the San Ignacio mine, 45.5 K tonnes were processed @ 2.52 gpt Au, 105 gpt Ag, recovering 85.5% Ag, 87.0% Au, to produce 388.4 K Oz Ag, 3,209 Oz Au.
  • GoGold Resources Inc. reported production results from its tailings project in Parral, Chihuahua. During the period 250 K Oz Ag, 2,281 Oz Au were recovered.

Endeavour Silver Corp. disclosed second quarter 2019 production results from its four mines in Mexico.

Endeavour Q2 2019 Production table1

ON FINANCING

  • Mexican Gold Corp. is undertaking a non-brokered private placement for aggregate gross proceeds of up to $4 M (Las Minas, Veracruz).
  • Impact Silver Corp. completed the first tranche of its non-brokered private placement, raising gross proceeds of $1.23 M, and announced the increase on the second tranche of financing to up to $1.5 M (Zacualpan, Estado de Mexico).
  • Evrim Resources Corp. announced the approval of the grant of 1 M stock options to an officer under the terms of the company’s stock option plan (Cerro Cascaron, Chihuahua).
  • One World Lithium Inc. closed the first tranche of its private placement financing, raising CDN$734.6 K (Salar del Diablo, Baja California. Please note there is not a Baja California Norte state in Mexico).
  • Oceanus Resources Corp. closed a non-brokered private placement raising $750 K (El Tigre, Sonora).
  • Silver One Resources Inc. increased its previously announced private placement, for gross proceeds of $5 M (La Frazada, Nayarit).
  • Advance Gold Corp. closed the non-brokered private placement financing previously announced, for gross proceeds of $234 K (Tabasquena, Zacatecas).
  • Millrock Resources Inc. plans to raise gross proceeds of between $1 M and $1.5 M through a non-brokered private placement. Finder’s fees of 7% cash and 7% finder’s warrants may be paid in connection with the Offering (Batamote, Sonora).

ON RESOURCES AND DEVELOPMENT

  • SilverCrest Metals Inc. filed the technical report titled “Technical Report and Preliminary Economic Assessment for the Las Chispas Property, Sonora, Mexico”. The PEA results were previously released.
  • VVC Exploration Corp. received the environmental permit and a land use change permit for its Samalayuca copper property in Chihuahua. With those permits the company can initiate mining operations in the Gloria zones of the Kaity claim. VVC began bench testing with mineralised material from the Gloria zones to assess metallurgy with different crush sizes and acid flow rates.
  • SilverCrest Metals Inc. provided the first underground sample results from the Babicanora vein on its Las Chispas project in Sonora. A total of 133 samples were collected from blast faces for 35 m of a 3.5 m by 3.5 m drift along the vein, same that averaged 2.6 m (vein width) @ 13.70 gpt Au, 1,107 gpt Ag (or 2,132 gpt AgEq). Some of the best intervals released comprise: 3.9 m @ 62.66 gpt Au, 4,610 gpt Ag (including 0.6 m @ 336 gpt Au, 26,435 gpt Ag); 4.1 m @ 13.91 gpt Au, 709 gpt Ag; 3.5 m @ 16.69 gpt Au, 2,192 gpt Ag; 1.8 m @ 53.18 gpt Au, 3,548 gpt Ag; 3.2 m @ 12.89 gpt Au, 799 gpt Ag; 5 m @ 16.69 gpt Au, 2,192 gpt Ag; 3.2 m @ 18.74 gpt Au, 459 gpt Ag; 2.1 m @ 14.77 gpt Au, 1,542 gpt Ag; 2.5 m @ 15.27 gpt Au, 1,426 gpt Ag; 2.5 m @ 21.73 gpt Au, 1,231 gpt Ag.
  • Goldplay Exploration Ltd. encountered a broad gold zone at the Nava target of its San Marcial project in Sinaloa. The results come from a zone 300 m west of the first Nava trenches, where a 31 m true width (tw) zone mineralised zone of epithermal quartz veins and a zone of intense stockwork which returned 17.7 m (tw) @ 2.11 gpt Au. The target is to be drill tested on the next drill program with a couple of holes.

ON DEALS AND CORPORATE ISSUES

  • Orex Minerals Inc. entered into an agreement with Pan American Silver Corp. to negotiate a formal JV agreement on the Sandra Escobar project in Durango, to replace a previous agreement from 2015, and will suspend the operation of the 2015 agreement until the new agreement is entered into, or until December 31, 2019, whichever is earlier.
  • Oroco Resources Corp. entered into a letter of agreement for the acquisition of an 80% interest in the 766.7 ha Rossy mining concession located within Oroco’s land package on the Santo Tomas district in Sinaloa. The company has to pay US$125 K over two years and issue 300 K shares and grant 1.5 NSR.

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

On the image below, orogenic gold style milky quartz vein bearing pyrite and jarosite in Oaxaca. Picture by Jorge Cirett

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

Cu mineralization

By Miguel A Heredia

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

 ON MEXICO ISSUES

  • No relevant news.

ON EXPLORATION

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

ON MINING

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

ON FINANCING

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

 ON RESOURCES AND DEVELOPMENT

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

ON DEALS AND CORPORATE ISSUES

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

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

On the picture above, Cu mineralization in a VMS prospect in Oaxaca, Mexico.  Photo by Miguel A Heredia.

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

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By Jorge Cirett

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

ON MEXICO ISSUES

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

ON EXPLORATION

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

ON MINING

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

ON FINANCING

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

ON RESOURCES AND DEVELOPMENT

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

ON DEALS AND CORPORATE ISSUES

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

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

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

IMG_1079 - copia

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

 

Quartz blade texture

By Miguel A Heredia

During the twenty three week of the year (June 17th to June 23th, 2019), at least 33 press releases were announced by companies working in Mexico, with sixteen disclosing deals and corporate issues, seven announcing financial rounds, six reporting on resources and development of their projects, and three informing on exploration results.  ON MEXICO ISSUES, no relevant news.  ON EXPLORATION, In Baja California Norte, One World Lithium reported completion of holes 2019-01 and 2019-03 at its Salar del Diablo project, and reported results from the ongoing drilling program. In Durango, Gainey announced its plan to conduct a drilling program at its Las Margaritas project, with an initial phase of 16 drill holes for a total of approximately 2,190m.  ON MINING, no relevant news. ON FINANCING, Prize closed the second and final tranche of its non-brokered private placement for gross proceeds of $195K (Manto Negro project, Coahuila). Sonoro proposed to undertake a non-brokered private placement financing for gross proceeds of up to $750K (Cerro Caliche project, Sonora). Advanced Gold proposed to undertake a non-brokered private placement for gross proceeds of a minimum of $150K (Tabasquena project, Zacatecas). Goldplay announced that it will be undertaken a non-brokered private placement for gross proceeds of up to $1.1M, and increase it to $1,376,250 (San Marcial project, Sinaloa). Impact Silver announced a non-brokered private placement for gross proceeds of up to $1M (Zacualpan mine, State of Mexico). Discovery Metals announced it has applied to the TSX to extend the term of 31,237,000 outstanding common share purchase warrants (Puerto Rico project, Coahuila). Azure secured financing for A$ 2M via a convertible note (Oposura project, Sonora). ON RESOURCES AND DEVELOPMENT, Endeavour received final tailings permit for its Terronera mine in Jalisco. GoGold announced that it is moving forward with the installation of a sulfidation acidification, re-neutralization, and thickening (SART) plant at its Parral tailings re-processing facility in Chihuahua.  Azure provided an update of the mining and processing operation planned for its Oposura project in Sonora.  Torex announced maiden mineral reserves for its El Limón Deep Zone at its El Limón-Guajes Mining Complex in Guerrero. Telson released significant channel samples results from underground development at its Tahuehueto mine in Durango.  Silver Bull announced the extension at depth of its Sierra Mojada deposit in Coahuila. ON DEALS AND CORPORATE ISSUES, Newmont Goldcorp announced that it is ramping up operations at its Peñasquito mine in Zacatecas. Evrim and Harvest Gold extended their JV agreement on Cerro Cascaron project in Chihuahua. Sierra Metals and Fortuna Silver announced results from their annual general meeting of shareholders (Cusi mine, Chihuahua, and San Jose mine, Oaxaca respectively). Premier Gold and Azure announced that their annual general meeting of shareholders will be held on July 25 and on June 19, 2019 respectively.  Excellon, GoGold, Mexican Gold, and Minaurum announced management changes. Oroco engaged San Diego Torrey Hills to provide market awareness and investor relations services to the company (Santo Tomas project, Sinaloa). Telson announced that it will provide a company update in a conference to be held in New Jersey (Tahuehueto project, Durango). Santacruz reached an agreement to amend the repayment terms of a short-term loan that it has borrowed from a private mining company (Veta Grande project, Zacatecas).

 ON MEXICO ISSUES

  • No relevant news.

ON EXPLORATION

  • One World Lithium Inc., announced the completion of holes 2019-01 and 2019-03 on its Salar del Diablo project in Baja California Norte, and sent all the samples from holes 2019-01, 03, 06, 09, and 11 to the lab for assays. The lab reported that 4 of the drill holes intersected aquifers that contain brines. A fifth hole intersected an aquifer that likely contains brine as the pH test was 8.6 which can be a good indicator of brines. “The presence of multiple aquifers containing brine indicates a potentially prospective area of over 20,000 hectares or 77 square miles on the northern third of the Salar del Diablo property”. One World also has staked an additional 28,030 hectares claim block bringing the company´s total claim block to 103,430 hectares or 399 square miles.
  • Gainey Capital Corp., announced its plans to conduct a drilling program at its Las Margaritas project in Durango. Gainey has been approved by SEMARNAT to drill up to 32 drill holes but will commence with an initial phase of 16 holes for a total of approximately 2,190m. Las Margaritas project consists of an undrilled low-sulphidation epithermal system in which surface sampling has returned up to 73.7 g/t Au.

ON MINING

  • No relevant news.

ON FINANCING

  • Prize Mining Corporation, closed the second a final tranche of its non-brokered private placement for gross proceeds of $195K. The total combined proceeds from the first and final tranches of the offering were $825K (Manto Negro project, Coahuila).
  • Sonoro Metals Corp., proposed to undertake a non-brokered private placement financing for gross proceeds of up to $750K. The gross proceeds will be used to complete the Phase 2 drilling program and fund the launch of a Phase 3 drilling program at its Cerro Caliche project in Sonora. Funding will also be allocated for the commissioning of preliminary studies required to produce a NI 43-101 compliant study to assess the viability of the development of a heap leach operation at its Cerro Caliche project.
  • Advanced Gold Corp., proposed to undertake a non-brokered private placement for gross proceeds of a minimum of $150K. The gross proceeds will be used to fund a geophysical program and further drilling at its Tabasquena project in Zacatecas.
  • Goldplay Exploration Ltd, proposed to undertake a non-brokered private placement for gross proceeds of up to $1.1M and increase it to $1,376,250. The gross proceeds of the offering will be used for exploration of its San Marcial project in Sinaloa, and for general and administration costs for its operations in Mexico and Canada.
  • Impact Silver , announced a non-brokered private placement for gross proceeds of up to $1M. The gross proceeds will be used to further explore its Zacualpan land package for high-potential Au-Cu targets such as Santa Teresa and manto America, Dense Media Separation engineering studies on the Capire VMS resource mill and production center, and ongoing efficiency improvements at the Guadalupe production mill. The Company reserves the right to increase the size of the private placement by up to 20%.
  • Discovery Metals Corp., announced it has applied to TSX to extend the term of 31,237,000 outstanding common share purchase warrants. “The Company is proposing to extend the expiry date of the warrants by an additional 18 months, such that each warrant will expire on February 17, 2021. The exercise price of all warrants will remain unchanged, at the current exercise price of $1.00 per common share”.
  • Azure Minerals Limited, secured financing for A$ 2M via a convertible note. This funding will enable Azure to meet start-up costs and working capital requirements at its Oposura project in Sonora.

 ON RESOURCES AND DEVELOPMENT

  • Endeavour Silver Corp., received final tailings permit for its Terronera mine in Jalisco. The authorization to change soil use on forest land was issued by SEMARNAT and gives the right to store tailings from the proposed Terronera high grade, underground Ag-Au mine in a secure, filtered dry stack tailings facility adjacent to the proposed plant site. “Now that the Terronera mine project is fully permitted, Endeavour Silver plans to complete a final improved pre-feasibility study in the 3rd quarter and arrange appropriate financing to build Endeavour’s next core asset. The mine is expected to produce more than 5M Oz AgEq (at an 80:1 Ag: Au ratio) over a minimum 12 year mine life”.
  • GoGold Resources Inc., announced that it is moving forward with the installation of a sulfidation acidification, re-neutralization, and thickening (SART) plant at its Parral tailings re-processing facility in Chihuahua. “The construction is planned to be completed before the end of 2019 at a cost of approximately $2.6 million USD and commissioning will begin immediately following practical completion”.
  • Azure Minerals Limited., provided an update of the mining and processing operation planned for its Oposura project in Sonora. High-grade mining is expected to start in the September quarter, at an anticipated production rate of 1,500 tonnes to 3,000 tonnes grading approximately 15% combined Zn + Pb. All mineralization to be mined has been classified under the indicated mineral resource category.
  • Torex Gold Resources Inc., announced maiden mineral reserves for its El Limón Deep Zone at its El Limón-Guajes Mining Complex in Guerrero. Probable mineral reserves as of April 2019 are 487,000 tonnes of 5.5 g/t Au and 6 g/t Ag to contain 86K Oz Au and 101K Oz Ag. Measured mineral resources are 797,000 tonnes of 5.52 g/t Au and 7 g/t Ag to contain 141K Oz Au and 170K Oz Ag, while inferred mineral resources are 1,090,000 tonnes of 5.2 g/t Au and 7 g/t Ag to contain 182K Oz Au and 243K Oz Ag. The mineral reserve is a subset of the mineral resource. The mineral resource is the downdip extension of mineralization in the El Limón open pit. It is located approximately 400 meters north-northwest of the Sub-Sill deposit and is open in three directions.
  • Telson Mining Corporation, released significant channel samples results from underground development at its Tahuehueto mine in Durango. Significant results are  87 g/t Au, 76 g/t Ag, 0.55% Cu, 3.7% Pb, and 12.1% Zn over 2.70m; 7.28 g/t Au, 83 g/t Ag, 0.56% Cu, 5.8% Pb, and 14% Zn over 3.45m; 8.25 g/t Au, 61 g/t Ag, 0.36% Cu, 3.1% Pb, and 6.8%Zn over 2.60m; 9.34 g/t Au, 69 g/t Ag, 0.73% Cu, 2% Pb, and 5.5% Zn over 3.07m; 6.98 g/t Au, 80 g/t Ag, 0.45% Cu, 4.3% Pb, and 5.7% Zn over 2.49m; and 12.55 g/t Au, 248 g/t Ag, 0.75% Cu, 6%Pb, and 8.6%Zn over 1.74m.
  • Silver Bull Resources Inc., announced that drilling results at its Sierra Mojada project in Coahuila have extended at depth the strike length of the deposit by 950m. Highlights include 5% Zn, 8.2% Pb, and 586 g/t Ag over 1.35m and 12.2% Zn, 1.4% Pb, and 53 g/t Ag over 1.8m in hole B19001; and 7.8% Zn, 1.5% Pb, and 36 g/t Ag over 2.05m in hole B19002, both holes in mixed oxide/sulphide mineralization. The company, along with its JV partner South 32 is conducting an initial 8,000m surface drill program targeting a series of possible sulphide extensions at depth to the main deposit, as well as a series of never before tested targets within the wider area.

ON DEALS AND CORPORATE ISSUES

  • Newmont Goldcorp Corporation, announced that it is ramping up operations at its Peñasquito mine in Zacatecas, following the lifting of an illegal blockade and the establishment of a dialogue process sponsored by the national government.
  • Evrim Resources Corp., & Harvest Gold Corp., extended their JV agreement on the Cerro Cascaron property in Chihuahua for a period of six months. Under the terms of the agreement, both companies will attempt to renegotiate the Cerro Cascaron deal and search for a new Au project in Mexico. Harvest has agreed to pay $55K to Evrim to maintain property payments at Cerro Cascaron while both parties renegotiate the Cerro Cascaron agreement. Once the Cerro Cascaron agreement has been renegotiated, Harvest Gold plans to complete a second target drill program on the property. Evrim also announced the appointment of its new VP of Exploration.
  • Sierra Metals Inc., announced results from its annual general meeting of shareholders (Cusi mine, Chihuahua).
  • Fortuna Silver Mines Inc., announced results from its annual general meeting of shareholders (San Jose mine, Oaxaca).
  • Premier Gold Mines Limited, announced its annual general meeting of shareholders will be held on July 25, 2019 (Mercedes mine, Sonora).
  • Azure Minerals Limited, announced its annual general meeting of shareholders to be held on June 19, 2019 (Oposura project, Sonora).
  • Excellon Resources Inc., appointed its new CFO and VP Corporate Development (La Platosa mine, Durango).
  • GoGold Resources Inc., announced management changes on its Board of Directors appointing a new Director, the same who will also serve as Chairman of the Board (Los Ricos project, Jalisco).
  • Mexican Gold Corp., announced the resignation of its President and Director and appointed its new CEO, the same that will serve as the new President and Director of the company. It also appointed its new CFO who will remain as a Director of the company (Las Minas project, Veracruz).
  • Minaurum Gold Inc., appointed a new Director to its Board. It also announced that Mr. David J Baker will be stepping down as a Director of the company (Alamo Silver project, Sonora).
  • Oroco Resource Corp., announced that it has engaged San Diego Torrey Hills Capital Inc., to provide market awareness and investor relations services to the company (Santo Tomas project, Sinaloa).
  • Telson Mining Corporation , announced that it will provide a company update at the John Tumazos Very Independent Research Metals Conference in Holmdel, New Jersey, including the discussion of the Q1 2019 financial results, and the progress being made in the construction of its on-site 1,000 tonnes per day mineral processing plant at its Tahuehueto project in Durango.
  • Santacruz Silver Mining Ltd., reached an agreement to amend the repayment terms of the US$ 2.3M short-term loan that it has borrowed from a private Bolivian mining company. The $US 2.3M payment is now to be repaid by January 30, 2010 (Veta Grande project, Zacatecas).

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

On the picture above, quartz blade texture in a low sulphidation epithermal vein system in a prospect in Guanajuato, Mexico.  Photo by Miguel A Heredia.

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

Inguaran Feb 2011 109a

By Jorge Cirett

During the 24th week of the year (June 10th to June 16th, 2019), at least 20 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, the illegal blockade on Newmont Goldcorp’s Peñasquito mine in Zacatecas was lifted after 81 days, with negotiations between the parts to start on the following week. CAMIMEX proposed 90% of the Mining Fund should be allocated directly to the mining communities, this amid the presidential intention to use this fund at his sole discretion. ON EXPLORATION, In Baja California, One World Lithium completed the drilling program at Salar del Diablo. In Sonora, Aloro completed a drilling program at Los Venados; Ridgestone presented results of a bulk sample program at Rebeico. In Chihuahua, Ethos Gold commenced drilling at Purisima; Kootenay completed road building for its incoming drill program at Columba; Sable completed its second drilling campaign at Margarita; Radius reported results from drilling at its Amalia project. Advance Gold completed a 3D model for its Tabaqueña project. In Veracruz, Azucar presented results of seven more drill holes at El Cobre. ON MINING, No relevant news. ON FINANCING, Mako is to raise C$27 M, Aztec C$360 K and Minera Alamos had $400 K in warrants exercised. ON RESOURCES AND DEVELOPMENT, Mexus Gold started leaching at Santa Elena, in Sonora. Oroco clarified a statement on Santo Tomas resources from a previous news release. Impact Silver released sample results for the Manto America target area at Zacualpan. Candente informed positive results by partner Sun River Gold on metallurgical tests for the El Oro tailings. ON DEALS AND CORPORATE ISSUES, No relevant news.

ON MEXICO ISSUES

  • The illegal blockade on Newmont Goldcorp’s Peñasquito mine in Zacatecas was announced to be lifted on June 13th. Discussion panels between the parts are to be held starting on June 19th, sponsored by the Ministry of the Interior. The illegal blockade by a truck contractor and proprietors of communal land near the mine site lasted for 81 days. The truck contractor says it is fighting for employment whereas the communal proprietors claim water shortages caused by consumption by the mine (and the company alleges a plain extortion attempt).
  • CAMIMEX (Camara Minera de Mexico) proposed that 90% of the resources of the Mining Fund (Fondo Minero) stay within Municipalities, and the remaining 10% with the Mining Secretariat. Fernado Alanis, president of CAMIMEX, said that the original objective of the fund was to support the mining communities. On the former regulations only 50% of the funds reached the municipalities and the remaining to the coffers of the Federation and States, “but we believe the majority should reach the localities” (this proposal comes amid the presidential intention to deliver the Mining Fund as loans to people in mining communities, a move most in the industry see as a play to gain support for elections, and not helpful for supporting mining communities, originally the aim of such fund).

ON EXPLORATION

  • Ethos Gold Corp. commenced its drill program in the Purisima property in Chihuahua. The initial program will comprise 3,000 m of reverse circulation (RC) drilling in 15 holes, targeting shallow oxide bulk tonnage gold mineralization. “At La Purisima a northwest trending gold mineralized zone has been identified over a strike length of at least 2 km with a width of alteration and geochemically anomalous gold mineralization of approximately 600 metres. Within this footprint are two north-west striking zones that have the strongest gold anomalies, each approximately 200 metres wide.”
  • Aloro Mining Corp. completed 1,347 m of drilling in four holes at its Los Venados project in Sonora. The program aimed to test a blind mineralized felsic dome structure adjacent to the Mulatos mine’s high grade Escondida gold bearing felsic dome. Relevant intercepts comprise 3.05 m @ 0.14 gpt Au; 1.53 m @ 0.13 gpt Au; 3.05 m @ 0.22 gpt Au; 7.62 m @ 0.16 gpt Au.
  • Kootenay Silver Inc. has completed road building and signed a surface access agreement with the landowner at its Columba property in Chihuahua. Drilling is expected to start on the third week of June 2019.
  • Sable Resources Ltd. announced the completion of the second round of drilling at the Margarita project in Chihuahua, releasing the results of the last 15 holes. Here some of the highlighted results: 5.7 m @ 39 gpt Ag; 11.55 m @ 35 gpt Ag; 4.15 m @ 35 gpt Ag; 7.65 m @ 42 gpt Ag; 7.60 m @ 63 gpt Ag, 0.75% Pb, 0.56% Zn (125 gpt AgEq); 8.45 m @ 93 gpt Ag (including 3.2 m @ 193 gpt Ag); 6.0 m @ 66 gpt Ag; 5 m @ 166 gpt Ag (including 1.5 m @ 426 gpt Ag); 62.5 m @ 28 gpt Ag; 59.5 m @ 68 gpt Ag (including 3.05 m @ 230 gpt Ag and 1.75 m @ 220 gpt Ag and 1.65 m @ 190 gpt Ag, and 5.60 m @ 153 gpt Ag); 32.90 m @ 34 gpt Ag; 17.90 m @ 23 gpt Ag.
  • One World Lithium Inc. announced the completion of two more holes at its Salar del Diablo project in Baja California.
  • Ridgestone Mining Inc. released results of a bulk sampling program on its Rebeico Cu-Au project in Sonora. A total of 111 samples weighing a combined 2,500 kg were collected from dumps, mainly form the Alaska vein which operated up to the 1960’s. The average grade for the different zones was: Veta Grande, 6.7 gpt Au, 13 gpt Ag, 0.79% Cu; Upper Alaska, 3.3 gpt Au, 11 gpt Ag, 1.39% Cu; Lower Alaska, 3.4 gpt Au, 23 gpt Ag, 1.32% Cu; La Verde, 3.5 gpt Au, 12 gpt Ag, 0.37% Cu; Josefina, 0.24 gpt Au, 12 gpt Ag, 0.49% Cu; Tunel de Garcia, 2.1 gpt Au, 2 gpt Ag, 0.40% Cu; Año Nuevo, 1.0 gpt Au, 5 gpt Ag, 0.60% Cu; Elena, 0.1 gpt Au, 5 gpt Ag, 0.99% Cu.
  • Radius Gold Inc. reported results from the 1,756 m six diamond hole second phase drill program at its Amalia project in Chihuahua. With the majority of assays received the highlighted true width intervals are: 44 m @ 12.38 gpt Au, 309 gpt Ag; 4 m @ 1.05 gpt Au, 24 gpt Ag; 4 m @ nil Au, 647 gpt Ag; 24 m @ 2.3 gpt Au, 126 gpt Ag (including 2.6 m @ 9.85 gpt Au, 761 gpt Ag); 65 m 3.75 gpt Au, 61 gpt Ag (including 17 m @ 7.91 gpt Au, 65 gpt Ag). “Radius and its partner Pan American Silver Corp have now completed two drill programs totalling 3665m in 15 drillholes…. Geological controls on the mineralization are complex with multiple events of gold and silver mineralization within veins, stockworks and hydrothermal breccias.”
  • Advance Gold Corp. announced the completion of a 3D model for its Tabasqueña project in Zacatecas. “Drilling in the first 3 phases has hit a cluster of mineralized epithermal veins over an area from east to west of approximately 300 metres, and north to south 400 metres, and 300 metres of depth”.
  • Azucar Minerals Ltd. released results from the Norte and El Suegro zones at its El Cobre project in Veracruz. Highlighted results comprise: 19.30 m @ 0.64 gpt Au, 0.08% Cu and 103.40 m @ 0.33 gpt Au, 0.11% Cu in one hole; 29.95 m @ 0.12 gpt Au, 0.15% Cu; 494.50 m @ 0.16% Cu. 0.16% Cu (including 64.5 m @ 0.27 gpt Au, 0.17% Cu); 67.85 m @ 0.46 gpt Au, 0.2% Cu (including 36.2 m @ 0.68 gpt Au, 0.27% Cu); 112.0 m @ 0.17 gpt Au, 0.26% Cu (including 57.75 m @ 0.22 gpt Au, 0.40% Cu); 200 m @ 0.18 gpt Au, 0.22% Cu (including 34.5 m @ 0.36 gpt Au, 0.28% Cu); 101.05 m @ 0.47 gpt Au, 0.14% Cu

ON MINING

  • No relevant News.

ON FINANCING

  • Mako Mining Corp. is to conduct an offering to raise gross proceeds of C$27 M (La Trinidad, Sinaloa).
  • Aztec Minerals Corp. has arranged a non-brokered private placement financing to raise minimum gross proceeds of CAD$360 K (Cervantes, Sonora).
  • Minera Alamos Inc. warrants for an amount of $400 K were acquired by Donald Smith Value Fund, L.P. Following the acquisition the acquiror holds 10.8% of the outstanding common shares of Minera Alamos, of which previously held 9.8% (Santana, Sonora; La Fortuna, Durango).

ON RESOURCES AND DEVELOPMENT

  • Mexus Gold US. informed leaching has started at its Santa Elena mine in Sonora (not to mistake with First Majestic’s Santa Elena mine, also in Sonora). “Approximately 5700 tons of high-grade quartz vein material will be broken on site and hauled to the crushing and leaching site. The estimated grade for this material is in the order of 5 to 10 g/t Au.”
  • Oroco Resource Corp., at the request of IIROC clarifies a previous news release. The Mintec Inc. resource estimate included in the historical Bateman Report of 1994 for the Santo Tomas project in Sinaloa utilized a classification scheme other than those set out in NI-43-101. “A qualified person has not done sufficient work to classify the historical estimate as a current mineral resource or mineral reserve. However, the historical assaying and verification methods were performed within the accepted standards applicable at the time.”
  • Impact Silver Corp. released results from surface and underground sampling at the Manto America target area on its Zacualpan property in Estado de Mexico. More than 33 samples have returned greater than 2 gpt Au, peaking at 22.40 gpt Au. Highlighted results include 0.50 m @ 22.4 gpt Au, 7 gpt Ag; 0.40 m @ 21.7 gpt Au, 101 gpt Ag, 1.2% Pb, 1.4% Zn; 0.30 m @ 20.40 gpt Au, 43 gpt Ag; 0.2% Pb, 0.4% Zn; 1.20 m @ 19.5 gpt Au, 8 gpt Ag; 0.30 m @ 16 gpt Au, 421 gpt Ag, 0.8% Pb, 2.1% Zn; 0.37 m @ 14.5 gpt Au, 14 gpt Ag; 0.30 m @ 7.1 gpt Au, 17 gpt Ag; 1.0 m @ 6.4 gpt Au, 2 gpt Ag; 1.0 m @ 3.1 gpt Au, 41 gpt Ag, 0.6% Pb. “The mineralization is hosted in strongly argillically altered volcanic rocks and is associated with lead and barium suggesting a volcanogenic massive sulphide provenance similar to the Capire silver lead zinc deposit to the south”.
  • Candente Gold Corp. informed that Sun River Gold has reported very positive recoveries from metallurgical testing of samples from the tailings deposit at its El Oro property in Estado de Mexico. The tailings project is being moved forward by negotiating the purchase of land for the new processing area and the obtaining the required permits. The material tested was from auger drilling conducted in 2018, averaging 2.99 gpt Au, 85 gpt Ag. Flotation tests were conducted on -325 mesh material returning an average recovery of 80.1% Au, 67.5% Ag on the Upper, Middle and Lower sections of the tailing, and an average of 75.6% Au, 63.6% Ag recoveries in blended material.

ON DEALS AND CORPORATE ISSUES

  • No relevant news.

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

On the image below, quartz-sulphide veinlet with sericitic halo hosted in intrusive rock in Michoacan. Picture by Jorge Cirett.

Inguaran Feb 2011 109a

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

Chalcedonic quartz vein

By Miguel A Heredia

During the twenty one week of the year (June 3rd to June 9th, 2019), at least 31 press releases were announced by companies working in Mexico, with sixteen disclosing deals and corporate issues, five reporting on resources and development of their projects, five informing on exploration results, four announcing financial rounds, two communicating production results, and one discussing Mexican news.  ON MEXICO ISSUES, the Mining Undersecretary of the Secretary of Economy, Francisco Quiroga, said that mining companies from Canada, USA, Peru, Colombia and Australia showed their interest to invest up to USD$ 8M in Mexico mining projects.  ON EXPLORATION, In Baja California Norte, One World Lithium released drilling results from its Salar del Diablo project. In Sonora, Colibri reported assays results from sub-outcrops on its Evelyn project.  In Chihuahua, Monarca identified a skarn and potential CRD/porphyry deposit after running a geophysical survey at its San Jose project.  In Zacatecas, Galore announced it has commenced drilling of 2,500m core drilling program at its Dos Santos property to test the El Alamo target. In Jalisco, GoGold released drilling results from its Los Ricos project.  ON MINING, Mexus Gold announced that over 5,700 tonnes of high-grade ore will be broken on site and hauled to the crushing and leaching site at its Santa Elena mine in Sonora. US Antimony produced 159,142 Lb Sb and 1,292 tonnes of zeolites during May 2019. ON FINANCING, VVC announced a non-brokered private placement for gross proceeds of CAD $2M (Samalayuca project, Chihuahua). Galore received a USD $100K loan from an officer of the company to fund its current 2,500m diamond core drilling program at its Dos Santos project in Zacatecas.  One World Lithium closed its third and final tranche of a previous announced non-brokered private placement for CAD $298,700 and announced a non-brokered private placement to raise up to CAD $2M (Salar del Diablo project, Baja California Norte).  Azure secured A$ 2M financing via a convertible note.  ON RESOURCES AND DEVELOPMENT, Azure announced that its board of directors has approved the commencement of trial mining and processing of high-grade mineralization from its Oposura project in Sonora. Sonoro Metals initiated metallurgical testing at its Cerro Caliche project in Sonora.  Endeavour released underground drilling results from its Guanacevi mine in Durango. Oroco announced the reception of a draft technical report for its Santo Tomas project in Sinaloa. US Antimony reported expansion of its Madero, Coahuila smelter capacity, and reported that its Puerto Blanco leach plant in Guanajuato is in the testing phase for the production of Au and Ag from its Los Juarez mine in Queretaro.   ON DEALS AND CORPORATE ISSUES, Aura Resources, Almadex, and Azucar Minerals granted stock options to directors, officers and consultants.  Riverside appointed Alberto Orozco as its VP Corporate Development (La Cecilia project, Sonora). Monarca signed an option agreement to acquire 100% interest in the San Jose project in Chihuahua and appointed new director. Inomin signed a non-binding letter agreement to acquire 100% interest in the La Gitana project in Oaxaca from Gunpoint, and appointed new director and adviser. Candente announced management changes with the retirement of its chair and director and the appointment of new director (El Oro tailings project, State of Mexico). Goldgroup and VVC announced their annual general meeting of shareholders will be held on July 31, 2019 and August 19, 2019 respectively. SilverCrest reported results of its annual general meeting of shareholders and appointed a new director to the Board (Las Chispas project, Sonora). Kootenay reported that its partner Pan American Silver has relinquished its right to earn 75% interest in the Promontorio Mineral Belt in Sonora. Magna Gold closed its previous qualifying transaction on two mining concessions at its Mercedes property in Sonora. Sierra Metals repurchased a royalty on its Cusi mine in Chihuahua from Minera Cusi S.A. de C.V. in US$ 4M.

 ON MEXICO ISSUES

  • Mexican mining projects raised interest for up to USD$ 8M of investment by companies from Canada, USA, Peru, Colombia, and Australia. According to the head of mining in the country, before realizing the investments, it will be necessary to carry out the work of convincing the surrounding populations. He said: “The type of mining we want is to pay taxes, be socially responsible and achieve economic benefits so that it reaches society and the settlement is public.” He insisted that the presidential mandate is that mining concessions will not be canceled and that the commitments acquired in the past will be honored. Among the areas with the greatest potential are in the south-southeast of Mexico, specifically the states of Oaxaca, Guerrero and Morelos, among others, with products such as Ag, Au, and Cu. The Ministry of Economy reported that the mining-metallurgical sector in Mexico contributes 4% of the national Gross Domestic Product. While in the world our country is the largest producer of Ag; it is among the top 10 producers of 16 different minerals: silver, bismuth, fluorite, celestite, wollastonite, cadmium, molybdenum, lead, zinc, diatomite, salt, barite, graphite, gypsum, gold and copper.

ON EXPLORATION

  • One World Lithium Inc., released drilling results from its Salar del Diablo project in Baja California Norte. The company has completed the first three holes of a twelve drill program, and reported that two holes located 14km apart have intersected aquifers with water samples containing pH values indicative of brines. Drilling to date has demonstrated that there are multiple aquifers in the northern part of the Salar which indicates that the entire Salar could be very prospective.
  • Colibri Resource Corporation, reported additional grab samples results from abundant quartz with local iron-oxide staining in sub-outcrops found on areas not previously mapped or sampled at its Evelyn project in Sonora. Grab samples results include values of 4.81 g/t Au and 4.19 g/t Au. This new area is located approximately 1km north-northeast of the Main Zone which consists of a moderately to steeply dipping Au-bearing quartz vein which has been the subject of historical mining. Colibri is planning a property wide, high density, airborne magnetic survey to determine the structural framework and the setting of known Au mineralization.
  • Monarca Minerals Inc., identified a skarn and potential CRD/porphyry deposit in its San José project in Chihuahua, after conducting an IP-resistivity and magnetic survey which returned very strong IP/magnetic anomalies over 2.8km strike length resulting in numerous drill targets. Based on the geophysical results and previous encouraging chip sampling on the property, Monarca is planning to perform an 18-hole RC drilling program to test for potential precious and base metals at depth.
  • Galore Resources Inc., announced it has commenced drilling of 2,500m core drilling at its Dos Santos property in Zacatecas to test Au mineralization associated with iron-oxides jasperoid and karst breccias exposed along the east-west trending El Alamo target.
  • GoGold Resources Inc., reported encouraging drilling results from an additional five diamond drill holes at its Los Ricos project in Jalisco. Significant results were encountered in hole LRGG-19-011, drilled 75m down dip below the deepest intersection to date on the property, with 1.2 g/t Au and 140 g/t Ag (3.07 g/t AuEq) over 18.5m, including 2.16 g/t Au and 228 g/t Ag (5.19 g/t AuEq) over 8.4m; in hole LRGG-19-13 with 0.78 g/t Au and 195 g/t Ag (3.38 g/t AuEq) over 15.6m, including 1.3 g/t Au and 297 g/t Ag (5.25 g/t AuEq) over 8.8m; and in hole LRGG-19-14 with 1.1 g/t Au and 127 g/t Ag (2.79 g/t AuEq) over 14.2m, including 1.94 g/t Au and 209 g/t Ag (4.73 g/t AuEq) over 7.7m. These positive results confirm that the deposit is still open at depth.

ON MINING

  • Mexus Gold US, announced that over 5,700 tonnes of high-grade ore ranging from 5 to 10 g/t Au and 9 to 12 g/t Ag will be broken on site and hauled to the crushing and leaching site at its Santa Elena mine in Sonora. “The leaching process has started and will continue on a permanent basis as fresh ore will be added to the heap leach pad. Moving forward, Mexus will increase the scale and capacity of the system to maximize returns” added the CEO of the company.
  • US Antimony Corporation, produced 159,142 Lb Sb and 1,292 tonnes of zeolites during May, 2019. It also reported that the inventories of Mexican antimony mine ore continue to grow.

ON FINANCING

  • VVC Exploration Corporation, announced a non-brokered private placement to raise up to CAD $2M. Gross proceeds will be used for exploration and development of its Samalayuca project in Chihuahua.
  • Galore Resources Inc., received a USD $100K loan from an officer of the company to fund its current 2,500m diamond core drilling at El Alamo target within its Dos Santos project in Zacatecas.
  • One World Lithium Inc., closed its third and final tranche of a previous announced non-brokered private placement for CAD $298,700. The aggregate gross proceeds of this offering under the first, second and final tranche totalled CAD $2,073,250. It also announced a non-brokered private placement for gross proceeds of up to CAD $2M. Net proceeds will be used at its Salar del Diablo project in Baja California Norte as follow: Salar del Diablo project drilling program CAD $500K; analysis and further testing of drill results CAD $400K; southern region pre-drilling program CAD$400K; and balance for working capital.
  • Azure Minerals Limited, secured A$ 2M financing via a convertible note by entering into a binding commitment with the company´s major shareholder Deutsche Balaton. “This funding will enable the Company to meet start-up costs and working capital requirements with operations to commence in the September quarter of 2019”.

 ON RESOURCES AND DEVELOPMENT

  • Azure Minerals Limited, announced that its board of directors has approved the commencement of trial mining and processing of high grade mineralization from its 100% owned Oposura property in Sonora. Initial mine production and processing will range between 1,500 to 3,000 tonnes per month of mineralized material grading approximately 15% combined Zn and Pb. The ore material will be processed on a toll treatment basis through a nearby sulphide flotation processing facility.
  • Sonoro Metals Corp., initiated ore characterization and bottle roll and leach column test at its Cerro Caliche project in Sonora. The tests are expected to be completed in 8 weeks. If the results are positive, they will be incorporated in the sensitivity analysis in order to define the characteristics of the heap leaching pilot operation preliminary design, which would be then updated to a NI 43-101 level.
  • Endeavour Silver Corp., released underground drilling results from seventeen holes drilled at its Guanacevi mine in Durango. Seven holes intersected high-grade over mineable widths to extend. Highlights include 0.93 g/t Au and 251 g/t Ag (325 g/t AgEq) over 3m true width in hole UG-61, and two intersections in parallel veins in hole UG-75 with 2.93 g/t Au and 2,175 g/t Ag (2,409 g/t AgEq) over 1m true width, and 0.78 g/t Au and 579 g/t Ag (642 g/t AgEq) over 3.9m. “Recent drilling has extended high grade Ag-Au mineralization to depth at all three of our original orebodies, which should help to increase resources at Guanacevi.”
  • Oroco Resources Corp., announced the reception of a draft technical report for its Santo Tomas project in Sinaloa. The technical report presents the key findings of historical technical reports, including a 1994 PFS study by Bateman Engineering (supported by metallurgical work by Mountain States R&D International, Inc., a resource estimate by Mintec, Inc., and mining and plant estimates by Minetek S.A. de C.V.).
  • US Antimony Corporation, reported expansion of its Madero, Coahuila smelter capacity, which the installation of long rotary furnace (LRF) number 3. The company has an additional 3 LRFs in inventory. Furnace recovery is in the 96%-98% range and the additional capacity is expected to handle production increases from the Company’s Wadley and Sierra Guadalupe Mines in San Luis Potosi and Zacatecas respectively. It also reported that its Puerto Blanco leach plant in Guanajuato is in the testing phase for the production of Au and Ag from its Los Juarez mine in Queretaro.

ON DEALS AND CORPORATE ISSUES

  • Aura Resources Inc., granted stock options to directors, officers and consultants of the company to purchase an aggregate 1.2M common shares at an exercise price of $0.05 per share which expire on June 4, 2019 (Taviche project, Oaxaca).
  • Almadex Minerals Ltd., granted stock options to certain directors and officers of the company to purchase an aggregate 628K common shares at an exercise price of $0.32 per share which expire on June 4, 2019 (Ixtaca project, Puebla).
  • Azucar Minerals Ltd., granted stock options to certain directors, officers and consultants of the company to purchase an aggregate of 573K common shares at an exercise price of $0.29 per share which expire on June 4, 2019 (El Cobre project, Veracruz).
  • Riverside Resources Inc., announced the appointment of Alberto Orozco as its VP Corporate Development (La Cecilia project, Sonora).
  • Monarca Minerals Inc., signed an option agreement to acquire 100% interest in the San Jose project in Chihuahua, where the company identified a skarn and potential CRD/porphyry copper deposit. To acquire the property, Monarca will pay USD $150K in staged cash payments as follow: USD $40K on the option signing date (already paid), USD $50K twelve months after signing of the option agreement, and USD $60K twenty four months after signing of the option agreement. The agreement includes a 2% NSR upon reaching commercial production and Monarca keeps a right to purchase 1% NSR by a single payment of USD $100K. The company also appointed a new director to its Board.
  • Inomin Mines Inc., signed a non-binding letter agreement to acquire 100% interest in the La Gitana property in Oaxaca from Gunpoint Exploration Ltd. La Gitana comprises a 494 hectares that hosts a low-sulphidation epithermal Au-Ag deposits in Tertiary-aged volcanic rocks. In order to acquire 100% of the property Inomin has to make staged payments for $300K and issue 2M of common shares of the company as follow: $10K (paid) on signing agreement; $25K and 150K shares following execution of definitive agreement; $50K and 250K shares on first anniversary; $65K and 450K shares on second anniversary; $75K and 500K shares on third anniversary; and $75K and 650K shares on fourth anniversary. Inomin will have the right to accelerate payments at the company´s discretion, and is also subject to a NSR the terms of which have yet to be finalized.  The company also announced the resignation of one of its directors and the appointment of its replacement. It also appointed an adviser of the company.
  • Candente Gold Corp., reported the retirement of its chair and director and the appointment of its new director (El Oro tailings project, State of Mexico).
  • Goldgroup Mining Inc., announced that its annual general meeting of shareholders will be held on July 31, 2019 (Cerro Prieto mine, Sonora)
  • VVC Exploration Corporation, announced that its annual general meeting of shareholders will be held on August 19, 2019 (Samalayuca project, Chihuahua).
  • SilverCrest Metals Inc., reported results of its annual general meeting of shareholders and appointed a new director to the Board (Las Chispas project, Sonora).
  • Kootenay Silver Inc., announced that its JV partner Pan American Silver Corp., has relinquished to its right to earn 75% interest on the Promontorio Mineral Belt in Sonora, which include the Promontorio Resource and La Negra high-grade Ag discovery. Kootenay will be conducting a review of the work performed by Pan American in order to plan the next steps for advancing these assets.
  • Magna Gold Corp., closed its previous qualifying transaction on two mining concessions at its Mercedes property in Sonora. In consideration of the grant of the option, Magna will: (i) pay to the Seller an aggregate of US$1.34M plus VAT of 16%, paid in installments commencing on the 6th month from the effective date of the agreement (the “Effective Date”) and ending on the 48th month from the Effective Date; (ii) issue to the seller a 3% NSR, capped at US$3.5M and subject to the right of the corporation to acquire all 3 percentage points of the NSR at a price of US$500Kper percentage point, within the first three years of commercial production of the Mercedes Property; and (iii) conditional on the completion of a going public transaction within six months of the Effective Date, issue 2,442,105common shares of the corporation to the seller.
  • Sierra Metals Inc., repurchased a royalty on its Cusi Mine from Minera Cusi S.A. de C.V. for US$ $M. The royalty agreement required the company to pay a 3% royalty on the net revenues generated by the mine, less transportation costs, for the life of the mine. The company has already paid US$2.5 million upon signing the repurchase contract on May 10, 2019 and is required to pay a further US$1.5 million on May 10, 2021. With this repurchase, Sierra Metals will no longer have any royalties on any of its properties or mines.

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, chalcedonic quartz vein in a low sulphidation epithermal system in a prospect in San Luis Potosi, Mexico.  Photo by Miguel A Heredia.

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

 

Chalcedonic quartz

By Miguel A Heredia

During the nineteen week of the year (May 20th to May 26th, 2019), at least 19 press releases were announced by companies working in Mexico, with twelve disclosing deals and corporate issues, four reporting on resources and development of their projects, two informing on exploration results, and one discussing Mexican news.  ON MEXICO ISSUES, the Mining Undersecretary of the Secretary of Economy, Francisco Quiroga, said Thursday that the blockade of the Peñasquito mine in Zacatecas is generating millions of dollars in losses.  ON EXPLORATION, In Baja California Norte, One World Lithium has commenced a 12 holes-4,250m RC drilling program at its Salar del Diablo project. In Chihuahua, Ethos released trenching results from its La Purisima project.  ON MINING, no relevant news.  ON FINANCING, no relevant news.  ON RESOURCES AND DEVELOPMENT, Silver One completed a short drilling program next to the historic resource area at its Peñasco Quemado project in Sonora. Endeavour reported results from the 2019 drilling program conducted at its Bolañitos mine in Guanajuato. Goldplay released high grade assays from a surface channel sampling carried out at its San Marcial project in Sinaloa. Impact Silver announced the commissioning of an engineering study at its Capire project in Mexico State.   ON DEALS AND CORPORATE ISSUES, First Majestic and Fresnillo announced results from their annual general meeting of shareholders and proclaimed management changes. Great Panther provided information for its annual general meeting of shareholders (Topia mine, Durango). Santacruz confirmed an earn-in by Carrizal Mining of 20% interest in Santacruz’s Veta Grande Project and agreed to acquire Carrizal Mining.   Minera Alamos strengthened its mine operations team with the appointment of its VP Technical Services (Santana project, Sonora).  Mexus appointed an experienced Chemical Engineer for its Santa Elena mine in Sonora. The Fortuna Silver CEO purchased company shares (San Jose mine, Oaxaca). Excellon announced management changes (La Platosa mine, Durango). Bacanora announced a strategic investment in both corporate Bacanora and its flagship Sonora Lithium project in Sonora.

 ON MEXICO ISSUES

  • Blockade to Peñasquito mine in Zacatecas has generated millionaire losses to the public coffers. The mining undersecretary of the Secretary of Economy, Francisco Quiroga, said Thursday that the blockade of the Peñasquito mine by a truck contractor and members of the Cedros community, is generating millions of dollars in losses to the company as to the public coffers and that the government is in favor of a solution that allows it to continue operating. Peñasquito mine located in Zacatecas State is owned by Newmont Goldcorp and is one of the largest mines in Ag extraction in the world, and the main Au mine in Mexico.

ON EXPLORATION

  • One World Lithium Inc., commenced a 12 holes-4,250 RC drilling program at its Salar del Diablo project in Baja California Norte. Goal of the program is to test geochemical anomalies that cover 150 square km and three highly conductive geophysical zones that cover 54 square km, of which two may be more than 100 and 200m thick. The property has never been drilled before.
  • Ethos Gold Corp., released trenching results from its La Purisima project in Chihuahua. The company completed six trenches totaling a length of approximately 3km on the surface expression of the la Purisima vein zone and the parallel stockwork zone. Significant trench results were encountered in T-1 with 0.49 g/t Au over 118m, including 1.13 g/t Au over 20m, and 0.76 g/t Au over 24m on the La Purisima vein, and separately 4.17 g/t Au over 5.4m on the stockwork zone; T-2 with 0.47 g/t Au over 127m, including 1.11 g/t Au over 40m on the La Purisima vein; and T-3 with 0.84 g/t Au over 10m, and 6.51 g/t Au over 2m both in the stockwork zone.

ON MINING

  • No relevant news.

ON FINANCING

  •  No relevant news.

 ON RESOURCES AND DEVELOPMENT

  • Silver One Resources Inc., completed a short diamond drilling program at its Peñasco Quemado project in Sonora, consisting of 974m in five holes. Goal of the program was to test the potential down-dip and along strike continuity of the Ag-Mn mineralization identified in the area of the historic resource outlined by Silvermex Resources Ltd; investigate the source of the very high zinc and lead in soil anomalies located along strike to the southeast of the historic resource area; and to test geochemical and geophysical anomalies in the west central part of the property. Drilling results indicates the mineralized Ag-Mn system does not extend outside the area of the historic resource.
  • Endeavour Silver Corp., reported drilling results in the Plateros and San Miguel veins from the 2019 drill program conducted at its Bolañitos mine in Guanajuato. The drilling program consisted of 19 holes drilled to mid-April, of which 12 holes intersected high grades over mineable widths and an additional 4 holes intersected old mine workings. Significant drill intersections were encountered in the San Miguel vein just north of the Bolañitos plant in hole MG-10 with 58 g/t Ag and 22.1 g/t Au (1,827 g/t AgEq) over 3.5m true width. “New high-grade vein mineralization has now been delineated over a 250 m length by 130 m depth below and northwest of the old San Miguel mine workings, still open to the northwest”. Also, significant results were encountered in the Plateros vein just west of the Bolañitos plant in hole PLU-20 with 108 g/t Ag and 4.25 g/t Au (448 g/t AgEq) over 2.3m true width. “New high-grade vein mineralization has now been delineated over a 250 m length by 120 m depth below the Plateros mine workings where Endeavour is currently mining, still open at depth and to the southeast”.
  • Goldplay Exploration Ltd., released high grade assays from a surface channel sampling carried out at its San Marcial project in Sinaloa. A significant result of 323 g/t Ag was encountered at the southeastern limits of the San Marcial NI 43-101 resource area suggesting potential for SE extension in the Guacamayo target. The sampling program also identified unrecognized Au potential in addition to the Ag mineralization since it encountered 974 g/t Ag and 2.01 g/t Au over 1m channel samples.
  • Impact Silver Corp., commenced an engineering study to test the viability of dense media separation processing at its Capire project in Mexico State. Positive results from this engineering study could lead to a new operating plan toward placing Capire into production. Capire is an open pit silver-lead-zinc (-copper) deposit located 16 kilometers southwest of IMPACT’s producing Guadalupe Production Center.

ON DEALS AND CORPORATE ISSUES

  • First Majestic Silver Corp, released results from its annual general meeting of shareholders and announced two new appointments: a VP Operation and a VP of Innovation, Processing & Metallurgy (Santa Elena mine, Sonora).
  • Fresnillo plc., announced results from its annual general meeting of shareholders and reinforced its sustainability and community relation area with the appointment of Tomas Iturriaga. It also appointed its new COO and a new member of its Board of Directors (La Herradura mine, Sonora).
  • Great Panther Mining Limited, provided information for its annual general meetings of shareholders to be held on June 24, 2019 (Topia mine, Durango).
  • Santacruz Silver Mining Ltd., confirmed an earn-in by Carrizal Mining of 20% Interest in Santacruz’s Veta Grande Project and further acquisition of the 100% of the outstanding shares of PCG Mining S.A. de C.V. (PCG), which is the holding company that owns 100% of Carrizal outstanding shares. The shares of PCG are owned as to 50% each by two unrelated shareholders. One of the shareholders is at arm´s-length to Santacruz and the other shareholder is Carlos Silva, the Santacruz´s COO. “With respect to the acquisition of PCG shares from the arm’s-length party (the “Arm’s Length Acquisition”), on closing a cash payment by Santacruz of US$500,000 and other consideration in the amount of approximately US$600,000, including the forgiveness of approximately US$450,000 in debt owed by the shareholder to Carrizal; and with respect the acquisition of PCG shares from the Santacruz COO (the “Silva Acquisition”, and together with the Arm’s Length Acquisition, the “Transaction”), on closing the issuance of 30,000,000 shares of Santacruz (the “Consideration Shares”) to Mr. Silva at a deemed price of CDN$0.05 per share”.
  • Minera Alamos Inc., strengthened its mine operations team with the appointment of Carolina Salas as its VP Technical Services. She will oversee final preparations related to the construction of commercial scale gold production facilities at the Santana project in Sonora.
  • Mexus Gold US, appointed an experienced Chemical Engineer for its Santa Elena mine in Sonora.
  • Fortuna Silver Mines Inc., informed that its CEO increased his equity position in the company by acquiring 170K common shares at an average price of US $2.59 per share (San Jose mine, Oaxaca).
  • Excellon Resources Inc., announced the resignation of its CFO and declared that the current VP Finance will serve as interim CFO while the company seeks a permanent replacement (La Platosa mine, Durango).
  • Bacanora Lithium plc, reported a strategic investment in both the corporate Bacanora and its flagship Sonora Lithium project in Sonora by Ganfeng Lithium, the world´s largest lithium metal producer. The strategic investment includes subscription for a 29.99% interest in Bacanora for a cash consideration of £14.4M, in addition to an initial 22.5% direct interest in the Sonora Lithium Project for a cash payment of £7.56M, with an option to increase up to 50% of the project.

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, chalcedonic quartz in a hot spring system in a prospect in Queretaro, Mexico.  Photo by Miguel A Heredia.

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

Flow banding rhyolite

By Miguel A Heredia

During the seventeen week of the year (May 06th to May 12th, 2019), at least 41 press releases were announced by companies working in Mexico, with fourteen communicating financial and production results, ten disclosing deals and corporate issues, seven reporting on resources and development of their properties, five informing on exploration results, three discussing Mexican news, and two announcing financing rounds.  ON MEXICO ISSUES, Mining Chamber of Mexico (CAMIMEX) demanded the authorities to act in the illegal blockade at the Peñasquito mine by a transport company called CAVA.  ON EXPLORATION, In Sonora, Aloro announced that it will resume drilling at its Venados project, Azure released drilling results from its Alacran project, and Colibri received historical assays from Santa Catalina Mining’s Pilar Exploration.  In Chihuahua, Silver Spruce and Radius Gold announced exploration results from its Pino de Plata and Amalia projects respectively.  ON MINING, Alio, Avino, Endeavour, Excellon, First Majestic, GoGold, Gold Resource, Hecla, Leagold, Pan American, Premier, Santa Cruz, Torex, and US Antimony presented Q1 2019 production and financial results from their Mexican operations. Endeavour also released its 2018 annual review and sustainability report. ON FINANCING, Defiance closed the final tranche of its previously announced private placement in the amount of $280,230 (San Acacio project, Zacatecas). Megastar closed a non-brokered private placement in the amount of $672,600 (Yautepec, Magdalena, and Rama de Oro projects, Oaxaca). ON RESOURCES AND DEVELOPMENT, Southern Silver updated mineral resources at its Cerro Las Minitas project in Durango. Azure increased mineral resources at its Oposura project in Sonora. Hecla reported positive exploration results from its San Sebastian mine in Durango. Mexus Gold started blast hole drilling at its Santa Elena mine in Sonora to initiate ore production. Premier announced high grade intersects from the underground drilling program carried out at the Marianas zone within its Mercedes mine in Sonora. US Antimony reported a doubling of its Mexican smelting. Goldplay released exploration results from its San Marcial project in Sinaloa. Endeavour filed an updated technical report for its Terrroneras project in Jalisco with mineral resource and reserve estimate.  ON DEALS AND CORPORATE ISSUES, Alamos Gold (Mulatos mine, Sonora), Argonaut (El Castillo mine, Durango), Endeavour (Guanacevi mine, Durango), and Leagold (Los Filos mine, Guerrero) announced results from their annual general meeting of shareholders. Oroco confirmed favourable court decision on the Santo Tomas concession in Sinaloa. Defiance appointed new Director and Executive Chairman (San Acacio project, Zacatecas). Sable announced that the TSX accepted for filing the documentation of its option agreement on the Margarita project in Chihuahua with Minas Guilloyna and Minera La Perla.

 ON MEXICO ISSUES

  • Mining Chamber of Mexico (CAMIMEX), demanded the authorities to act in the conflict between Peñasquito and a transport company called CAVA. The company declared that the illegal blockade which started more than a month ago, harms entire families and the productive chains of the region. CAMIMEX also stated that is essential that mining companies in the country can work without being subject to illegal pressures and, like any industry that develops in the country, their demands are met promptly through legal channels and attached to the rule of law. The company initiated the suspension of payments to employees and unionized workers, contractors, suppliers and communities. However, the company is willing to help unlock this situation that affects 20 thousand people who work directly or indirectly for the mine.
  • Mexico mining exploration, registered its lowest investment in 12 years. The mining exploration investment in Mexico during 2018 reached USD $383M, which represented a year-on-year decrease of 37.4% and its weakest level in the last 12 years, according to data from the Mining Chamber of Mexico (CAMIMEX).

ON EXPLORATION

  • Aloro Mining Corp., announced that soon it will resume drilling at its Los Venados project in Sonora. The drilling plan will consist of 1,200m in four holes and will be focused on the blind target discovered by hole LVRC-012 which intersected 32m of blind strong silicic alteration containing 1.72 g/t Au over 4.57m, interpreted as the margin of a concealed felsic dome.
  • Azure Minerals Limited, released drilling results from its Alacran project in Sonora, where its JV partner Minera Teck completed 21 holes phase 2 diamond drilling campaign for 10, 540m. 16 of the drill holes targeted porphyry-style copper mineralization at Cerro Alacrán prospect, while the remaining 5 holes targeted epithermal-style precious metal mineralization at Cerro San Simon and Cerro Colorado areas. This phase of drilling confirmed the existence of porphyry copper mineralization with broad zones of visible chalcopyrite intersected. Significant drill intersections include hole ALA-18-001 with 0.17% Cu over 118m; hole ALA18-003 with 0.25% over 131.7m; hole ALA-18-011 with 0.19% Cu over 137m; and hole ALA-18-014 with 0.21% over 177.3m.
  • Colibri Resource Corporation, purchased historical assays results for 8,000 samples collected on the Pilar Gold project in Sonora by Santa Catalina Mining in the 90´s. Highlights include a series of 11 consecutive assays reporting 285.12 g/t Au, 45.53 g/t Au, 195.5 g/t Au, and 51.91 g/t Au which have been interpreted to correspond with hole S-10. This hole intersected 54.47 g/t Au over 16.5m, and is located in the North Hill Zone; a series of 9 consecutive assays including an intersection of 80.3 g/t Au, interpreted to correspond with hole Q-8b. This hole intersected 9.64 g/t Au over 13.5m; and another series of 6 consecutive assays including 0.54 g/t Au, 8.52 g/t Au, 20.66 g/t Au, 16.23 g/t Au, and 6.97 g/t Au, interpreted to correspond with hole P-9b located in the Main Zone, which encountered 10.16 g/t Au over 9m.
  • Silver Spruce Resources inc., completed field work at its Pino de Plata project in Chihuahua. The field program expanded areas of intrusive-related alteration and mineralization to > 50 hectares; confirmed that high silver grades are present on surface at El Terrero and Gossan areas; added three new vein targets at La Perla, Santa Clara and El Muro vein systems; and refined drill collar locations and orientations to optimize targeting. The company announced that eight targets were identified for drill testing: “gossans in the Gossan zone, skarn/replacements at Santa Elena, the Terrero mine target, the La Perla vein and associated alteration zone, the Santa Clara vein, the Theodora vein, the Sierpe veins and associated alteration, and the newly defined Muro vein.” The company holds a drill permit for 30 holes but only plans to drill 12 holes for an estimated of 2,000m during the phase 1.
  • Radius Gold Inc., provided an update of its ongoing drilling program at its Amelia project in Chihuahua. Radius has completed three drill holes proximal to hole AMDD19-010 which encountered 12.38 g/t Au and 309 g/t Ag over 34m of true width. Hole AMDD19-011 intersected 97m of “varying intensity quartz veins, stockwork veining and diorite dykes”; hole AMDD19-012 intersected a zone of 53m of “alteration including variable stockworks, silicification and hydrothermal breccias”; and hole AMDD19-013 intersected 17m of “moderate to strong silicification, tectonic breccia with micro vein stockworks and traces of fine sulphides”. Assays for these holes are pending.

ON MINING

  • Alio Gold Inc., announced Q1 2019 financial and production results from its San Francisco mine in Sonora. Alio produced 10,968 Oz Au and 6,274 Oz Ag. It is less compared with Q1 2018. The by-product cash cost and AISC in Q1 2019 was $884 and $1,137 per Oz. The reason of the lower production at San Francisco mine is due to the decision to stop active mining in the San Francisco pit and focus on continuing leaching and processing the low grade stockpile.
  • Avino Silver & Gold Mines Ltd., reported Q1, 2019 production and financial results from its Avino mine in Durango. The company milled 197,687 tonnes to produce 268.4K Oz Ag, 1,813 Oz Au and 1.1M Lb Cu (over 615K Oz AgEq) with a cash-cost and AISC of USD $11.44 and USD $13.81 per Oz AuEq produced. Avino reported revenues for USD $6.7M, an EBIDTA of USD $49M, and a net income (loss) of USD $610M.
  • Endeavour Silver Corp., announced Q1 2019 production and financial results from its four Mexican operations: Bolañitos and El Cubo mines in Guanajuato, Guanacevi in Durango, and El Compas in Zacatecas. It produced 1.07M Oz Ag, 10K Oz Au (or1.9M Oz AgEq), with a cash cost and AISC of $12.55 and $19.37 per Oz Ag payable (net of Au credits). It also presented its 2018 annual review and sustainability report. 2018 Sustainability highlights include the investment of $400K in corporate charitable donations, focused on education, employment, health, infrastructure, and cultural events in Mexico and Canada; plantation of 53,000 trees in reforestation projects to reclaim disturbed ground; and the recycle of over 93% of water used; the investment of $1.7M in environmental protection programs. The company also reported that 99% of its workforce is Mexicans, spending $42M in employee wages and benefits; spent $181.1M on goods and services, 97% of total procurement is from within Mexico; and paid $10.2M in taxes.
  • Excellon Resources Inc., released Q1 2019 production and financial results from its la Platosa mine in Durango. The company processed 18,219 tonnes of 534 g/t Ag, 5% Zn, and 8% Pb to produce 260.4K Oz Ag, 1.37M Lb Zn, and 2.2M Lb Pb, with metallurgical recoveries of 89.7%, 74.6%, and 78.1% respectively. Cash cost and AISC were USD $11.71 and USD $25.35 respectively. The company reported revenues for USD $5.2M and a net loss of USD $602K.
  • First Majestic Silver Corp., presented Q1 2019 production and financial results from their Mexican operations. The company milled 812,654 tonnes to produce 3.3M Oz Ag or 6.3M Oz AgEq, with a cash cost and AISC of $6.34 and $12.91 per Oz Ag payable, and reported revenues for $86.8M, and net earnings of $2.9M. A distribution by mine is shown in the table below:

  • GoGold Resources Inc., announced Q1 2019 production and financial results from its Parral tailings project in Chihuahua. It stacked 478,874 tonnes to produce 414.2K Oz AgEq, with cash cost of USD $13.61 and an AISC of USD $13.61 per Oz AgEq produced. GoGold reported revenues for USD $7.03M, an EBIDTA of USD $1.86M, and a net loss income of USD $2,44M.
  • Gold Resource Corporation, released Q1 2019 production and financial results from their mine operations in Oaxaca. The company processed 165,638 tonnes of 1.26 g/t Au and 226 g/t Ag to produce 6,538 Oz Au and 364.6K Oz Ag. Cash cost and AISC of USD $340 and USD $834 per Oz AuEq produced respectively. Gold Resource reported revenues for USD $26.57M, and net income of USD $0.88M.
  • Hecla Mining Company, reported Q1 2019 production and financial results from its San Sebastian mine in Durango. The mill operated at an average of 494 tonnes per day to produce 441K Oz Ag and 3,530 Oz Au, at a cash cost and AISC of $11.23 and $16.55 per Oz Ag produced respectively.
  • Leagold Mining Corporation, announced Q1 2019 production and financial results from its Los Filos mine in Guerrero. The company produced 64K Oz Au at an AISC of USD $797 per Oz Au sold. Los Filos underground is now producing at over 1,900 tonnes per day with cost below USD $80 per tonne of ore.
  • Pan American Silver Corporation, presented Q1 2019 production and financial results from their Mexican operations. At its La Colorada mine in Zacatecas, the company produced 2M Oz Ag and 1K Oz Au at cash cost of USD $2.16 per Oz Ag produced and an AISC of USD $3.37 per Oz Ag produced. At its Dolores mine in Chihuahua, the company produced 1.1M Oz Ag and 30K Oz Au at cash cost of USD $3.34 and AISC of USD $26.45.
  • Premier Gold Mines Limited, reported Q1 2018 production and financial results from its Mercedes mine in Sonora. It milled 178,771 tonnes of 3.18 g/t Au and 27 g/t Ag to produce 17.6K Oz Au and 57.7K Oz Ag at a cash and IASC of USD $806 and $1,105 per Oz Au sold respectively. Premier reported revenues for USD $23.1M and mine operating income of USD $3.7M.
  • Santacruz Silver Mining Ltd., announced Q1 2019 production and financial results from their Mexican operations. At its Veta Grande mine in Zacatecas, the company processed 32,625 tonnes of 119 g/t Ag, 0.19 g/t Au, 0.8% Pb, and 1.9% Zn,  to produce 79.6K Oz Ag, 97 Oz Au, 488.3K Lb Pb, and 1.1M Lb Zn. At its Rosario mine in San Luis Potosi, the company  milled 10,279 tonnes of 47 g/t Ag, 0.3% Pb, and 2.1% Zn to produce 14K Oz Ag, 61 Oz Au, 60.5K Lb Pb, and 407.7K Lb Zn.
  • Torex Gold Resources Inc., presented Q1 2019 production and financial results from its El Limon-Guajes Mining Complex in Guerrero. Torex produced 77.8K Oz Au at an average grade of 2.45 g/t Au. Cash cost and AISC per Oz Au sold were USD $745 and USD $1,161 respectively. It reported revenues for USD $101.9M and earnings from mine operation of USD $16.8M.
  • US Antimony, produced during Q1 2019 approximately 69,000 Lb per month from its Mexican operations (Wadley mine in San Luis Potosi and Guadalupe mine in Zacatecas).

ON FINANCING

  • Defiance Silver Corp., closed the final tranche of its previously announced private placement in the amount of $280,230. In total, Defiance raised $2,567,620 in its private placement (San Acacio project, Zacatecas).
  • Megastar Development Corp., closed a non-brokered private placement in the amount of $672,600. Gross proceeds of the financing will be used to advance exploration on multiple properties within the Oaxaca, Mexico Au-Ag belt as optioned from Minera Zalamera S.A. de C.V. (Yautepec, Magdalena and Rama de Oro projects, Oaxaca).

ON RESOURCES AND DEVELOPMENT

  • Southern Silver Exploration Corp., announced a new mineral resource estimate at its Cerro Las Minitas project in Durango. Indicated resources are 11,102,000 tonnes of 105 g/t Ag, 0.16% Cu, 1.2% Pb, 3.7% Zn, and 0.1 g/t Au to contain 37.5M Oz Ag, 40M Lb Cu, 303M Lb Pb, 897M Lb Zn, and 35K Oz Au (133.9M Oz AgEq or 2B Lb ZnEq). Inferred resources are 12,844,000 tonnes of 111 g/t Ag, 0.27% Cu, 0.9% Pb, 2.8% Zn, and 0.07g/t Au to contain 45.7M Oz Ag, 76M Lb Cu, 253M Lb Pb, 796M Lb Zn, and 31K Oz Au (138.1M Oz AgEq or 2.04B Lb ZnEq).
  • Azure Minerals Limited, expanded mineral resources at its Oposura project in Sonora. The new mineral resource estimate is based on 173 diamond holes totaling 11,109m drilled on phase 1 and 58 diamond holes totaling 4,567m drilled on phase 2. Indicated resources are 2.5M tonnes of 5.3% Zn, 2.9% Pb, and 19 g/t Ag, and inferred resources of 0.6M tonnes of 3.4% Zn, 2.1% Pb, and 15 g/t Ag. Total mineral resources are 3.1M tonnes at grades of 5% Zn, 2.7% Pb, and 18 g/t Ag containing 342.7M Lb Zn, 188.2M Lb Pb, and 1.78M Oz Ag. In addition, reconnaissance drilling in the Central Zone has encountered near-surface, high-grade mineralization. Drilling highlights include hole OPDH-173 which intersected 7.7% combined Zn+Pb over 12m, including 12.5% combined Zn+Pb over 4.1m, and hole OPDH-178 with 18.9% combined Zn+Pb over 9.5m, including 26.6% combined Zn+Pb over 6.2m. Azure is planning additional drilling to further increase mineral resources in the Central Zone, to the north of the deposit and within the wider property.
  • Hecla Mining Company, reported positive exploration results from its San Sebastian mine in Durango. The company obtained encouraging drill results at the Middle Vein area, including 6,422 g/t Ag and 24.57 g/t Au over 1.86m. This drilling phase has increased the oxide mine life through upgraded resource in the Middle Vein. In addition, Hecla defined near-surface mineralization at the new El Toro area over 1.5km along strike and from surface up to 150m at depth. Drilling highlights at El Toro area include 750 g/t Ag and 4.9 g/Au over 1.8m, and 666 g/t Ag and 10.9 g/t Au over 1.3m.
  • Mexus Gold US, started blast hole drilling on the Julio vein system at its Santa Elena mine in Sonora to produce the ore necessary to initiate steady production. The material being drilled has been sampled and is averaging 4 g/t Au and 12 g/t Ag. “Mexus currently has over 12,000 tons of ore stockpiled and ready to mine which was a result of the preparation of the pit on the Julio vein”.
  • Premier Gold Mines Limited, released high grade intersects from underground drilling carried out at the Marianas zone within its Mercedes mine in Sonora. Significant results were in hole UG-MR19-011 with 4.96 g/t Au and 71 g/t Ag over 31m, including 25.65 g/t Au and 171 g/t Ag over 3.1m, hole UG-MR-19-007 with 4.51 g/t Au and 64 g/t Ag over 20.5m, including 11.04 g/t Au and 94 g/t Ag over 3.8m, and hole UG-MR10-010 with 7.29 g/t Au and 8 g/t Ag over 3.5m. “The Marianas Zone comprises the down-plunge extension of the main Mercedes mine trend. Previous surface drilling suggests Marianas has the potential to host economic mineralization of higher than the current reserve grade. It is the Company’s goal to convert a portion of Marianas mineral resources to mineral reserves with a delineation drill program during the balance of 2019. Ore development could commence in 2020”.
  • US Antimony, reported a doubling of its Madero, Coahuila Mexican smelter capacity with the startup of No.2 long rotary furnace. This is expected to double Mexican production by the end of Q2 due to the increased output of its Wadley mine in San Luis Potosi and its Guadalupe mine in Zacatecas.
  • Goldplay Exploration Ltd., released trenching results from the Nava Zone located 1.5 km to the west of its San Marcial NI 43-101 silver resource, supporting an attractive mineralized corridor for discoveries and potential resource expansion. Wide zones of up to 1.5 g/t Au were encountered during the trenching sampling. Significant results include 0.7 g/t Au over 40m, including 1.9 g/t Au over 6m.
  • Endeavour Silver Corp., filed an updated technical report for its two deposits at the Terroneras project in Jalisco with mineral resource and reserve estimate. Indicated resources at Terroneras are 5,275,000 tonnes of 227 g/t Ag and 2.35 g/t Au to contain 38.5M Oz Ag and 398K Oz Au. Inferred resources are 1,022,000 tonnes of 212 g/t Ag and 1.7 g/t Au to contain 6.97M Oz Ag and 56K Oz Au. Indicated resources at La Luz are 126K tonnes of 192 g/t Ag and 13.6 g/t Au to contain 779K Oz Ag and 55K Oz Au. Inferred resources at La Luz are 58K tonnes of 145 g/t Ag and 12.15 g/t Au to contain 269K Oz Ag and 23K Oz Au. Probable combined mineral reserves of Terroneras and La Luz are 5,587,000 tonnes of 208 g/t Ag and 2.33 g/t Au to contain 37.44M Oz Ag and 419K Oz Au (mineral resources are inclusive of mineral reserves).

ON DEALS AND CORPORATE ISSUES

  • Alamos Gold Inc., announced results from its annual general meeting of shareholders (Mulatos mine, Sonora), and the retirement of one of its Directors and the appointment of its replacement.
  • Argonaut Gold Inc., released voting results from its annual general meeting of shareholders (El Castillo mine, Durango).
  • Endeavour Silver Corp., announced results from its annual general meeting of shareholders, and the appointment of its newest Director (Guanacevi mine, Durango).
  • Great Panther Mining Limited, announced the appointment of a new Director (Topia mine, Durango).
  • Leagold Mining Corporation, presented voting results from its annual general meeting of shareholders (Los Filos mine, Guerrero).
  • McEwen Mining Inc., announced two management changes: its new CFO and the General Manager for its Nevada operation (Fenix project, Sinaloa).
  • Oroco Resource Corp., confirmed that a favourable court decision on the Santo Tomas concession has been received by its Mexican legal council. The company also announced that a criminal complaint against Aztec and its president Ron Arnold has been field with the Procuraduría General de Justicia de la Ciudad de Mexico (Santo Tomas project, Sinaloa).
  • Defiance Silver Corp., appointed new Director and Executive Chairman (San Acacio project, Zacatecas).
  • Sable Resources, announced that the TSX accepted the file documentation of its option agreement on the Margarita project in Chihuahua with Minas Guilloyna and Cia. Minera La Perla. Sable can earn 100% right, title, and interest in the Margarita project by satisfying the CAD $3.5M purchase price through the issuance of shares or cash or a combination of both over a three years period. To date, Sable has paid CAD $50K in cash and issued 200K shares (CAD $30K) to vendors during the execution of the agreement, issued 500K shares or cash equivalent (CAD $470K) on May 30, 2018), and has to issue CAD $500K worth of shares or cash equivalent on or before May 30, 2019, CAD $500K worth of shares or cash equivalent on or before November 30, 2019, and CAD $2M worth of cash or shares on or before May 30, 2020.

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 banding rhyolites at a locality in Guanajuato, Mexico.  Photo by Miguel A Heredia.

 

 

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

By Jorge Cirett

During the 18th week of the year (April 29th to May 5th, 2019), at least 35 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, Newmont Goldcorp Corp. informed on the intention to temporarily suspend operations at the Peñasquito mine in Zacatecas, due to an illegal blockade lasting for more than a month now. More than 300 mine employees protested outside the Zacatecas Congress, accusing José Narro, senator by Morena (the president’s party) of instigating the blockade. Drill core from La Xora project in Nayarit was added to The Mexican Core Shack. ON EXPLORATION, Nine companies presented advances in the exploration of their properties: In Baja, One World Lithium has received the permits to drill its Salar Del Diablo property. In Sonora, Sonoro Metals disclosed assays for the first 15 RC holes of the second drilling campaign; Ridgestone updated the work done to date at Rebeico; Minaurum staked a large chunk of ground at its Alamos project. In Chihuahua, Silver Spruce released surface sample results from its Pino de Plata project; Radius Gold released exciting results from the first hole of the second drilling campaign at Amalia; Kootenay Silver has initiated drill road construction for its incoming campaign at Columba. In Jalisco, GoGold released results from its drilling campaign at Los Ricos. In Zacatecas, Alien Gold updated on the exploration effort at its Donovan 2 property. ON MINING, nine companies presented its first quarter 2019 results, while one company presented its 2018 results. ON FINANCING, First Mining, and Prize Mining are to raise $6 M and $1.5 M respectively. Leagold Mining secured a 200 M term loan and a 200 M revolving credit. ON RESOURCES AND DEVELOPMENT, no relevant news.  ON DEALS AND CORPORATE ISSUES, Alio Gold received notice of a civil claim from a former Rye Patch shareholder.  

ON MEXICO ISSUES

  • Newmont Goldcorp Corp. informed on the intention to temporarily suspend operations at the Peñasquito mine in Zacatecas (one of the largest in Mexico, produced 272 K Oz Au in 2018), due to an illegal blockade by a trucking contractor and some members of the Cedros community that began on March 27, 2019. The company announced on April 9 that the trucking contracts will now be signed with independent truckers, to their economic benefit and to avoid the repeated extortion blockades by the current trucking contractor. Newmont Goldcorp denounced that the blockader’s public claims that focus in water quality and employment, turn in a direct petition for large amounts of money when done privately. The company asks for help from the Mexican and Zacatecan authorities to resolve the illegal blockade that affects the income of more than 20 thousand persons, directly or indirectly. On a different event, about 300 employees of Minera Peñasquito, protested outside the Zacatecas Congress against the illegal blockade that keeps paralyzed the Peñasquito mine. The protesters accused Jose Narro, senator by the president party, Morena, and his acolyte Felipe Pinedo of blackmailing the company with false water contamination statements.  
  • Core from La Xora project, in Nayarit, was added to the Mexican Core Shack (https://gambusinoprospector.com/mexican-core-shack/), under the epithermal low sulphidation section.

ON EXPLORATION

  • Sonoro Metals Corp.  reported assay results from the first 15 reverse circulation holes of the second phase drilling program at its Cerro Caliche property in Sonora. All holes encountered gold mineralization, which extend mineralization 1.25 Km NW from the Central Zone, where the first drill campaign defined a series of NW striking structures, outlining three shallow bulk tonnage oxidized mineralized zones in metasedimentary and volcanic rocks. Previously reported results come from the Central Zone prospects Japoneses, Abejas, El Colorado and Guadalupe, whereas the new drill holes tested El Rincon, Gloria, El Boludito, and Veta de Oro zones. Highlighted results comprise 10.67 m @ 2.73 gpt AuEq; 3.05 m @ 5.48 gpt AuEq; 10.67 m @ 0.74 gpt AuEq; 6.1 m @ 0.80 gpt AuEq; 15.24 m @ 1.05 gpt AuEq.
  • Alien Metals Ltd. updated on its exploration work at its Donovan 2 project in Zacatecas. Work to date supports indications of volcanogenic massive sulphide (VMS) mineralisation on multiple target areas open along strike, with surface assays of up to 3.3% Cu, 0.25% Zn. Currently there are magnetic, chargeabilty and resistivity anomalies, and a gravity survey underway is to refine the targets on this project, which is 24 kilometers from Teck’s San Nicolas deposit.
  • Ridgestone Mining Inc. announced that exploration work to date on its Rebeico property in Sonora defined the 1.2 km long Alaska vein and intensely altered breccia zones SW of the vein, carrying Cu, Au and Ag values, as well as bismuth anomalies. An 18 line-kilometer induced polarization (IP) survey identified a chargeability anomaly below the breccia zone. A 12 hole 1,430 m diamond drill program tested 500 m of the Alaska vein. Eight of the twelve holes intersected significant grades, including: 0.80 m @ 1.41% Cu, 2.95 gpt Au; 2.0 m @ 2.78% Cu, 8.69 gpt Au; 1.40 m @ 3.25 gpt Au; 1.50 m @ 1.39 gpt Au; 1.0 m @ 0.30% Cu, 5.61 gpt Au; 3.25 m @ 2.41% Cu, 8.31 gpt Au; 1.50 m @ 1.22% Cu, 36.10 gpt Au.  
  • One World Lithium Inc. has received the permit required to start its 12 hole, 4,250 m drilling program at its Salar del Diablo property in Baja California. The company intends to test three geophysical anomalies, a geochemical anomaly, and structures that may trap and concentrate brines. The Salar del Diablo Property has never been drilled in the past.
  • Silver Spruce Resources Inc. released surface sample results from its Pino de Plata property in Chihuahua. The samples returned 19 gpt Ag, 16 gpt Ag, 2 gpt Ag, 1,1,30 gpt Ag, 123 gpt Ag, 95 gpt Ag and 255 gpt Ag; up to 0.19 gpt Au, up to 802 ppm Cu, up to 3.7% Pb on samples 0.2 to 1.0 m in length. The two targets in the area comprise El Terrero and the Gossan area. At El Terrero, a 32 hectares zone “of multiple flat-lying brecciated zones hosted by a zone of strong argillic alteration” is the target, while at the Gossan area a series of hornfels and skarns developed near an intrusive contact may host massive sulphide replacement bodies associated to structures.
  • Radius Gold Inc. reported the first results from the second diamond drill campaign at its Amalia project in Chihuahua. The program is operated by Radius and funded by Pan American Silver Corp. under a JV agreement by Which Pan American can earn an initial 65% by making cash payments totaling US$1.5 M (of which US$100 K have been paid) and spending US$2 M on exploration over four years. The first hole in this campaign intersected 44 m @ 12.38 gpt Au, 309 gpt Ag, including 11 m @ 39.9 gpt Au, 323 gpt Ag. The estimated true width of the zone is 34 m, consisting of “an epithermal breccia and quartz sulphide stockwork vein zone ” located on or near to the contact between overlying Tertiary rhyolitic ignimbrite and the footwall andesite volcaniclastics of the Late Cretaceous Tarahumara Formation. Diorite dykes appear to be emplaced along the fault zone and are associated with mineralization”.
  • Minaurum Gold Inc. staked an additional 20,872 hectares on its Alamos project in Sonora. Additionally, mapping has revealed four new vein zones: Rosario, La Dura Oeste, La Dura and La Tijera. These four zones bring the total of veins zones of the district to twenty. The Rosario vein has been traced for 500 m, with samples assaying 304 gpt Ag and 227 gpt Ag over 1 m and 675 gpt Ag, 1.0% Cu, 0.9% Pb over 2 m. The La Dura Oeste vein has been traced for 550 m, returning assays of 30 gpt Ag, 3.4% Cu and 37 gpt Ag, 4.3% Pb. La Dura vein  returned 123 gpt Ag, 2.% Cu over 0.5 m. La Tijera vein was traced for 750 m, with three samples returning 23- 36 gpt Ag, 0.41 – 0.77% Cu, up to 0.1% Pb, up to 0.15% Zn over 0.1 to 0.3 m.
  • Kootenay Silver Inc. has initiated the road construction for the drilling of its Columba property in Chihuahua. The property covers a low sulphidation epithermal system with numerous veins ranging on 200 m to up to 2 km of strike length. Over 1,000 m of underground workings are present, including four shafts and six drifts, with historic records indicating grades between 600 and 900 gpt Ag.
  • GoGold Resources Inc. released results from its recently acquired Los Ricos property in Jalisco. Highlighted diamond drill results comprise 22.4 m @ 4.13 gpt Au, 182 gpt Ag (or 6.55 gpt AuEq), including 3.0 m @ 25.08 gpt Au, 534 gpt Ag (or 32.2 gpt AuEq) and 11.7 m @ 0.68 gpt Au, 89 gpt Ag (or 1.87 gpt Au), including 6.1 m @ 0.58 gpt Au, 142 gpt Ag (or 2.47 gpt AuEq). The campaign is focused on defining the mineralized halo around the ore shoots defined by 65 historical reverse circulation holes. Over six thousand assays from channel samples are being digitized from underground working, to aid with deeper drill planning.

ON MINING

  • Consolidated Zinc Ltd. released its March 2019 quarterly activities report. During the period its Plomosas mine in Chihuahua produced 11,267 tonnes @ 10.7% Zn, 2.5% Pb, while 12,992 tonnes were processed @ 10.9% Zn, 2.0% Pb, 18 gpt Ag, recovering 87.5% Zn, 84.9% Pb at cash cost $1.11 per Lb Zn. The company also informed on a surface access legal proceedings that seek to nullify the current surface access contract.  
  •  Americas Silver Corp. announced production and operating cost results for the first quarter of 2019, including figures of its Mexican operations. At its Cosalá operations in Sinaloa, 152.6 K tonnes were processed @ 57 gpt Ag, to produce 173.2 K Oz Ag, 11.3 M Lb Zn, 4.6 M Lb Pb (or 1.32 M Oz AgEq), at cash cost $30.48 per Oz Ag and AISC $25.85 per Oz Ag.
  • Grupo Mexico S.A.B. de C.V. presented results for the first quarter of 2019. During the period the company produced 261,328 tonnes Cu, 5,145 tonnes Mo, 18,550 tonnes Zn, 3,13 M Oz Ag, 12,399 Oz Au and 0.58 M tonnes of sulphuric acid from its operations in Mexico, USA and Peru, at cash cost $1.13 per Lb Cu. A US$413 M budget was approved for the construction of a Zn concentrator at Cananea, Sonora, a project that is to generate 3,760 jobs. At San Martin, in Zacatecas, $87 M have been budgeted to re-open the mine, whereas at Pilares, in Sonora, an open pit mine is to produce ore @ 0.78% Cu to be treated at the La Caridad plant, six km away.
  • McEwen Mining Inc. reported its first quarter 2019 results, including figures from its Mexican operations. At El Gallo, in Sinaloa, 5,432 Oz AuEq were produced at cash cost $967 per Oz AuEq and an AISC $989 per Oz AuEq. “Mining ceased at El Gallo by the end of May 2018, and the mine continues to recover gold from residual leaching of the heap leach. During the quarter, the process plant underwent a small expansion to improve efficiency and enable faster gold recover”.
  • Premiere Gold Mine Ltd. reported its first quarter production for 2019. During the quarter the Mercedes mine in Sonora produced 17,614 Oz Au and 57,681 Oz Ag.
  • Argonaut Gold Inc. announced its operating and financial results for the first quarter 2019. At El Castillo, in Durango, working at a rate of 68 K tonnes per day (tpd), 3.8 M tonnes of waste were moved, 2.29 M tonnes of ore were mined and 2.33 M tonnes @ 0.39 gpt Au were placed on the leach pads, producing 28,210 Oz Au, 54,030 Oz Ag at cash cost $918 per Oz Au. At San Agustin, part of the El Castillo Complex, working at a rate of 33 K tonnes per day, 1.31 M tonnes of waste and 1.66 M tonnes of ore were moved, placing 1.69 M tonnes @ 0.47 gpt Au in the leach pads, producing 14,084 Oz Au, 54,030 Oz Ag at cash cost $867 per Oz Au. At La Colorada in Sonora, working at a rate of 76 K tpd, 5.97 M tonnes of waste and 872 K tonnes of ore were moved and 882 K tonnes were placed on the leach pads @ 0.44 gpt Au, producing 15,372 Oz Au, 54,773 Oz Ag at cash cost $952 per Oz Au. “The Company plans to invest between $50 million and $60 million in capital programs during 2019, of which approximately 30% was spent during the first quarter of 2019”
  • Coeur Mining Inc. reported first quarter 2019 financial results, including figures from its Mexico operations. At Palmarejo, in Chihuahua, 379 K tonnes were milled @ 2.18 gpt Au, 144 gpt Ag, recovering 86.4% Au, 72.8% Ag, to produce 23,205 Oz Au, 1.28 M Oz Ag. Costs applicable to sales (CAS) were $713 per Oz Au and $9.66 per Oz Ag.
  • Alamos Gold Inc. released its financial results for the first quarter 2019, including figures from its operations in Mexico. At Mulatos, in Sonora, 1.83 M tonnes of ore were mined, 1.98 M tonnes of waste moved, to place 1.87 M tonnes of ore on the leach pads @ 0.98 gpt Au, producing 38,900 Oz Au at cash cost $743 and mine site AISC of $809. At El Chanate, in Sonora, 5,800 Oz Au were produced at cash cost $1,193 per Oz Au and mine site AISC of $1,193 per Oz Au. Construction of the haulage road has commenced on the Cerro Pelon mine, near the Mulatos mine, with a 2019 budget of $25 M. Pre-stripping is expected to commence in the third quarter.
  • Excellon Resources Inc. announced first quarter 2019 results from the Platosa mine in Durango. During the period 20 K tonnes were mined, with 16.8 K tonnes of ore @ 534 gpt Ag, 5.01% Pb, 8.00% Zn and 1.45 K tonnes of historical stockpile processed @ 123 gpt Ag, 1.22% Pb, 1.44% Zn, recovering 89.7% Ag, 74.6% Pb, 78.1% Zn to produce 260.4 K Oz Ag, 1.38 M Lb Pb, 2.21 M Lb Zn.
  • Golden Minerals Co. announced financial results for Q1 2019. The company continues to advance the Yoquivo Au-Ag project in Chihuahua. The company has cash and cash equivalents of $2.2 M, with no debt.
  • Santacruz Silver Mining Ltd. reports on its financial and operating results for the 2018 fiscal year. During the year the company milled 211.4 K tonnes, recovering 815.3 K Oz AgEq at cash cost $36.8 per AgEq Oz and an AISC of $37.2 per AgEq Oz. At Veta Grande, Zacatecas, silver production was 514.4 K Oz. At Rosario, in San Luis Potosi, silver production was 300.9 K Oz Ag.  

ON FINANCING

  • First Mining Gold Corp. intends to complete a non-brokered private placement for aggregate proceeds of up to $6 M. (San Ricardo, Sonora; Lachatao, Oaxaca).
  • Prize Mining Corp. intends to raise up to $1.5 M by means of non-brokered private placement (Manto Negro, Coahuila).
  • Leagold Mining Corp. received a binding underwriting commitment from a syndicate of lenders for a $200 M term loan and a $200 M revolving credit facility. “These loans will be used to repay current debt and finance the Company’s growth” (Los Filos, Guerrero).

ON RESOURCES AND DEVELOPMENT

  • No Relevant News.  

ON DEALS AND CORPORATE ISSUES

  • Alio Gold Inc. received a notice of civil claim from a former shareholder of Rye Patch Gold Corp. whose shares were acquired by the company on May 2018.  (San Francisco, Sonora).
  • Silver Bull Resources Inc. informed that South 32 is to maintain its option on the Sierra Mojada project by funding an additional US$3 M in exploration. “This will result in aggregate funding of US$6 million at the completion of the second year of the joint venture option”. To maintain the option, South32 must contribute minimum exploration funding of US$10 M during a four year option period with minimum aggregate exploration funding of US$3 M, US$6 M and US$8 M to be made by the end of years 1, 2 and 3 of the option period respectively.

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

On the image below, quartz-chalcopyrite veinlet hosted by an intrusive rock in core from a project in Michoacan. Picture by Jorge Cirett.

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

Chalcedonic quartz breccia

During the fifteen week of the year (April 22th to April 28th, 2019), at least 22 press releases were announced by companies working in Mexico, with ten disclosing deals and corporate issues, five informing on exploration results, three communicating financial and production results, three reporting on resources and development of their properties, and one discussing Mexican news.  ON MEXICO ISSUES, Mexico was announced as the largest contributor of silver worldwide for the ninth year in a row.   ON EXPLORATION, In Sonora, Evrim acquired La Lola project, Aloro received a new drill permit for its Los Venados project, and Azure announced exploration activities conducted by Teck at the El Alacrán project. In Coahuila, Discovery Metals reported sampling results from its Monclova project. In Zacatecas, Advance Gold announced drilling results from its Tabasqueña property. In Jalisco, GoGold released encouraging drill results from its Los Ricos project. ON MINING, Capstone reported Q1 2019 production results from its Cozamin mine in Zacatecas. Newmont Goldcorp Corporation announced Q1, 2019 production and financial results. Agnico released Q1, 2019 production results from their Mexican operations. ON FINANCING. No relevant news. ON RESOURCES AND DEVELOPMENT, Consolidated Zinc announced maiden ore reserves at its Plomosas mine in Chihuahua. Mexus Gold announced that the ore crushing circuit on its Santa Elena mine in Sonora is now fully operational. Agnico informed that in its Santa Gertrudis project in Sonora, the exploration program has extended the known deposits and outlined high grade mineralization at the Trinidad trend. Azure reported Q1, 2019 results from the activities carried out at its Oposura project in Sonora.   ON DEALS AND CORPORATE ISSUES, Silver Bull announced results from its 2019 annual general meeting of shareholders (Sierra Mojada project, Coahuila). Newmont Goldcorp Corporation published its 2018 sustainability report (Peñasquito mine, Zacatecas). Discovery Metals amended terms of its Puerto Rico option agreement in Coahuila. First Mining announced the appointment of its new COO (San Ricardo project, Sonora). Galore reported the passing of one of its Directors (Dos Santos project, Zacatecas). Newmont Goldcorp Corporation declared quarterly dividend of $0.14 per share. Minera Alamos announced transaction to accelerate development of its Guadalupe de los Reyes project in Sinaloa. Agnico announced election of Directors (Pinos Altos mine, Chihuahua). Alien Metals received the notification of major holdings (Los Campos, Zacatecas). Capstone announced results from its 2019 annual general meeting of shareholders (Cozamin mine, Zacatecas).

 ON MEXICO ISSUES

  • Fresnillo plc, is the leading producer of silver worldwide with 58.1 M Oz Ag, which has led Mexico to position itself for nine years as the number one in the contribution of this metal.

ON EXPLORATION

  • Evrim Resources Corp., acquired La Lola Au-Ag project in Sonora. This low sulphidation system was identified and staked by Evrim and consolidated through third party agreements in 2019. The land package comprises 6,309 hectares and contains La Barra vein system which extends for at least 5km and is locally up to 40m wide. Reconnaissance sampling returned 58 g/t Au from a historic dump and 424 g/t Ag from hanging wall structures. A systematic soil survey returned Au anomalies up to 43 ppb along the la Barra vein and up to 123 ppb Au in the eastern Adaena alteration zone. Pathfinder geochemistry and quartz textures suggest potential to find a preserved boiling zone bonanza target at depth. La Lola has never seen drilling or modern exploration.
  • Aloro Mining Corp., received a new environmental permit to drill 14 holes at its Los Venados project in Sonora. The drill permit, which is valid for two years, also includes the construction of approximately 1,500m of access road.
  • Azure Minerals Limited, released that the exploration program at El Alacran project in Sonora is being conducted by Teck Resources and is focused on the porphyry copper potential at the Cerro Alacran prospect and on the epithermal mineralization at Cerro San Simon and Cerro Colorado targets. Assay results for the drill samples have been received from Teck. Azure is currently undertaking a technical review and significant drill intersections will be released when this process is complete.
  • Discovery Metals Corp., released sampling results at the Real Viejo area from its Monclova project in Coahuila. Significant results from 41 underground channel samples include 450 g/t Ag, 0.01 g/t Au, 0.14% Cu, 2.9% Pb, and 16.1% Zn (1,558 g/t AgEq) over 1m breccia; 714 g/t Ag, 0.03 g/t Au, 0.08% Cu, 0.5% Pb, and 1.1% Zn (814 g/t AgEq) over 1.2m breccia; and 507 g/t Ag, 0.01 g/t Au, 0.21% Cu, 6.1% Pb, and 4.0% Zn ( 1,018 g/t AgEq) over 1m breccia. Also, significant results from 200 surface channel samples include 57 g/t Ag, 0.01 g/t Au, 0.02% Cu, 0.3% Pb, and 2.9%Zn (248 g/t AgEq) over 1.0m breccia; 88 g/t Ag, 0.01 g/t Au, 0.04% Cu, 0.6% Pb, and 0.7% Zn ( 162 g/t AgEq) over 1.5m fault breccia, and dump samples returning 1,150 g/t Ag, 16.45 g/t Au, 1.35% Cu, 1.6% Pb, and 0.2% Zn (2,645 g/t AgEq) and 418 g/t Ag, 0.01 g/t Au, 0.23% Cu, 1.3% Pb, and 3.4% Zn (704 g/t AgEq).
  • Advance Gold Corp., announced phase 3 drilling results from its Tabasqueña project in Zacatecas. Two deep holes and one shallow hole were completed for a total of 1,093m during phase 3 and targeted the western extension of a cluster of epithermal veins and the potential of the veins in the near surface oxide zone. Highlights of the shallow hole include 0.15 g/t Au and 73 g/t Ag over 4.72m, with the best intersection of 0.58 g/t Au and 31 g/t Ag over 1.05m. The two deep holes did not intersect the veins suggesting that the structures could be dipping more vertically.
  • GoGold Resources Inc., released encouraging drilling results from its Los Ricos project in Jalisco. Hole LRGG-19-03 intersected 2.21 g/t Au and 319 g/t Ag (6.45 g/t AuEq) over 20.4m, including 4.26 g/ Au and 608 g/t Ag (12.36 g/t AuEq) over 10.5m, including 6.17 g/t Au and 869 g/t Ag (17.77 g/t Au) over 7.2m.

ON MINING

  • Capstone Mining Corp., reported Q1, 2019 production results from its Cozamin mine in Zacatecas. The company milled 273,000 tonnes of 1.53% Cu to produce 8.7M Lb Cu and 5.5M Lb Zn, at cash cost of US$ 0.70/Lb Cu produced. Metallurgical recoveries for Cu and Zn were 94.2% and 69.3% respectively.
  • Newmont Goldcorp Corporation, produced 1.23M Oz Au during Q1, 2019 at a cost applicable to sales of $701 per Oz and an AISC of $907 per Oz. The company reported a net income of $113M, an EBITDA of $687, a cash flow from continuing operations of $574M, and free cash flow of $349M.
  • Agnico Eagle Mines Limited, released Q1, 2019 production results from their Mexican operations. At Pinos Altos mine in Chihuahua, the company milled 478,000 tonnes of 2.89 g/t Au to produce 42.7K Oz Au, at a cash cost of $694 per Oz Au produced. At its Creston-Mascota mine in Chihuahua, the company milled 361,000 tonnes of 1.96 g/t Au to produce 13.5K Oz Au, at a cash cost of $727 per Oz Au produced. At its La India mine in Sonora, Agnico milled 1,451,000 tonnes of 0.67 g/t Au to produce 23K Oz Au, at a cash cost of $772 per Oz Au produced.

ON FINANCING

  • No relevant news.

ON RESOURCES AND DEVELOPMENT

  • Consolidated Zinc Limited, announced maiden ore reserves at its Plomosas mine in Chihuahua. The total proven and probable ore reserves based on the current mineral resources as depleted 31 December 2018 for the Plomosas mine are 73,850 tonnes at grades of 13.8 % Zn, 2.4 % Pb, and 18 g/t Ag. In terms of mining costs, the stoping has been estimated at US$ 29.85/ ton ore mined and development at US$ 6.50/ton ore mined.
  • Mexus Gold US, announced that the ore crushing circuit on its Santa Elena mine in Sonora is now fully operational.
  • Agnico Eagle Mines Limited, reported that mapping work at its Santa Gertrudis project in Sonora has extended the main corridor to almost 20km in length. There are three corridors with at least 9 mineralized zones with multiple deposits that have been discovered to date. “Part of the recent exploration work has been between the known deposits where there had been limited drilling by previous operators. Current work is also testing new geological concepts”.
  • Azure Minerals Limited, reported Q1, 2019 results from the activities carried out at its Oposura project in Sonora. Azure announced that the initial hydrologic drilling into potential aquifers, as well as the condemnation/sterilization drilling on plant site and tailings storage, has been successfully completed. The phase 2 drilling program was completed with a total of 58 holes adjacent to the East Zone mineral resource. Results were reported in previous press releases and confirmed the continuity of the mineralization, and this is likely to result in upgrading most of the East Zone Mineral Resource to JORC Indicated classification, thereby enabling conversion to JORC Probable Reserves as part of the Feasibility Study. “The close-spaced extensional drilling was successful in delineating a zone of high-grade (>20% Zn+Pb) mineralisation located around Tunnel D within the western part of the East Zone and extending further to the west into the Central Zone. Azure is currently assessing the potential for early development of this high-grade mineralisation as access to this area is immediately available via Tunnel D”. Geotechnical studies, detailed deposit-wide variability metallurgical testwork, and open pit and underground mine planning and scheduling are in progress.

ON DEALS AND CORPORATE ISSUES

  • Silver Bull Resources Inc., announced results from its 2019 annual general meeting of shareholders (Sierra Mojada project, Coahuila).
  • Newmont Goldcorp Corporation, published its 2018 sustainability report. Newmont´s sustainability highlights include:  a) “Conducting the first integrated environmental and social impact assessment under an improved approach to free, prior and informed consent of indigenous peoples at the Sabajo project near the Merian operation in Suriname; b) Launching a Supplier Risk Management program to significantly improve how risks – including corruption, safety, social, environmental, human rights and security – are managed throughout the supplier relationships lifecycle; c) Refreshing Newmont’s global inclusion and diversity strategy and including metrics to measure inclusion and diversity; d) Distributing more than $6.5 billion in economic value including $1.4 billion in wages and benefits, nearly $520million paid in taxes and royalties, and $1.1 billion spent with local suppliers; e) Partnering with the International Union for Conservation of Nature (IUCN) and working together on achieving better biodiversity outcomes through a review of the Company’s biodiversity projects in Nevada; f) Minimizing the risk of catastrophic tailings dam failures by strengthening Newmont’s tailings governance framework to include reviews of its five high-priority tailings storage facilities by independent technical review boards; and g) Reducing water consumption by six percent (compared to the 2016 base year) and maturing Newmont’s water strategy focus toward water stewardship.
  • Discovery Metals Corp., amended terms of its Puerto Rico option agreement located in Coahuila State, and signed a 30-years exploration and mining agreement with the Boquillas Del Carmen Ejido. Discovery Metals may exercise the option to acquires 100% interest of the Puerto Rico property by making a cash payment of US$300K by monthly installments of US$20K, commencing 30 calendar days after receiving  the drill permit, issuance of 500K common shares on each anniversary of the closing date of the transaction,   and the issuance of additional common shares equivalent to the greater of 20% of the market value of the project as determined by an independent valuation or 18M common shares, taking into account  common shares already issued to the property owners. In order to exercise the option, the company is required to complete 12,000mof drilling within 3 years after it receives the drill permit.
  • First Mining Gold Corp., announced the appointment of its new COO (san Ricardo property, Sonora).
  • Galore Resources Inc., reported the passing of one of its Directors (Dos santos project, Zacatecas).
  • Newmont Goldcorp Corporation, declared quarterly dividend of $0.14 per share of common stock, payable on June 20, 2019 to holders of record at the close of business on June 6, 2019.
  • Minera Alamos Inc., announced the transaction with ePower Metals Inc., to accelerate the development of its Guadalupe de los Reyes property in Sinaloa. Minera Alamos will assign its option rights to acquire the property in exchange for 19.8% of the outstanding ePower common shares and certain other rights related to the development of the Guadalupe de los Reyes property. If ePower fail to complete any of the remaining option payments, all rights to acquire the property will revert to Minera Alamos. Minera Alamos also will be entitled to a right of first refusal in the event ePower should at any time seek to raise financing to develop the property by way of the sale or grant of a royalty or stream. To acquire Minera Alamos’ interest in Los Reyes, the following conditions must be satisfied by ePower: Complete a cash payment of US$1,500,000 to Minera Alamos, to reimburse Minera Alamos for the cost of an option payment the Company will be making to Vista on April 23, 2019, assume Minera Alamos’ remaining option payments of US$3,000,000 in favour of Vista (US$1,500,000 due October 27th, 2019; and US$1,500,000 on the earlier of October 27th, 2021 or a production decision, Issue to Minera Alamos 9,450,000 post-Consolidation (as defined below) ePower Shares and 3,350,000 common share purchase warrants entitling Minera Alamos to acquire further post- consolidation ePower Shares at a price $0.50 per share for a period of twenty-four months, and enter into a governance agreement, providing for, among other things, Minera Alamos receiving the right to appoint one director to the board of ePower for so long as Minera Alamos holds at least 5% of ePower’s outstanding common shares and Minera Alamos receiving the right to participate in future financings.
  • Agnico Eagle Mines Limited, announced election of Directors during its annual general meeting of shareholders (Pinos Altos mine, Chihuahua).
  • Alien Metals Limited, received the notification of major holdings in respect of the conversion of the convertible loan agreement and issue of shares to Gravner Ltd. (Los Campos, Zacatecas).
  • Capstone Mining Corp., announced results from its 2019 annual general meeting of shareholders (Cozamin mine, Zacatecas).

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

On the picture above, a chalcedonic quartz breccia in a hot spring system  in Queretaro, Mexico.  Photo by Miguel A Heredia.