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

By Jorge Cirett

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

ON MEXICO ISSUES

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

ON EXPLORATION

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

ON MINING

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

ON FINANCING

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

ON RESOURCES AND DEVELOPMENT

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

ON DEALS AND CORPORATE ISSUES

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

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

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

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

 

Large barite crystals

By Miguel A Heredia

During the nine week of the year (March 11th to March 17th, 2019), at least 33 press releases were announced by companies working in Mexico, with eight announcing financial rounds, seven communicating financial and production results, six informing on exploration results, six disclosing deals and corporate issues, four reporting on resources and development of their properties, and 2 discussing Mexican news. ON MEXICO ISSUES, Compañía Minera Cuzcatlán recognized the contribution of women in mining and declared it is committed to continue promoting its inclusion. Ternium re-activated the ore transport from its Aquila mine in Michoacan after the highway was blocked by an indigenous community for 16 days.  ON EXPLORATION, In Sonora, Aztec Minerals reported positive metallurgical results from its Cervantes project. In Chihuahua, Sable released drilling results from its Margarita project. In Coahuila, Prize Mining announced plans for the next phase of exploration at its Manto Negro project. In Sinaloa, e-Power staked three new mining claims. In Zacatecas, Excellon reported drilling results from its Evolution project.  ON MINING, Alio, Consolidated Zinc, Fortuna, Impact, Leagold and Starcore presented production results from their Mexican mining operations for the periods Q4 and full year 2018.  ON FINANCING, Aura announced that is undertaking a non-brokered private placement to raise up to $0.5M (East Taviche project, Oaxaca).  Defiance closed the first tranche of its non-brokered private placement for $1,229,500. Mexican Gold closed the final tranche of its non-brokered private placement for $2,143,000 (Las Minas project, Veracruz). McEwen announced its voluntary termination of the equity distribution agreement to offer shares from its common stock. Vangold has arranged a non-brokered private placement for gross proceeds of up to $0.5M, and announced a shares consolidation plan (Pinguino project, Guanajuato). Xtierra announced its intention to raise up to $1M by way of a non-brokered private placement (Bilbao project, Zacatecas). Sierra Metals closed a senior secured corporate credit for up to US$100M (Cusi mine, Chihuahua).  ON RESOURCES AND DEVELOPMENT, SilverCrest updated mineral resource estimate for its Las Chispas project in Sonora, effective February 8, 2019.  Orla Mining reported that it is advancing its Camino Rojo Oxide project in Zacatecas towards a construction decision.  Leagold announced a mine expansion FS for its Los Filos mine in Guerrero. Telson released significant assay results from underground development at its Tahuehueto mine in Durango. ON DEALS AND CORPORATE ISSUES, Aura appointed new CEO, entered in a definitive agreement with Minaurum on its East Taviche project in Oaxaca, and the shareholders approved the change of name to Aura Resources Inc.  Coeur appointed former Nevada Governor to its Board of Directors (Palmarejo mine, Chihuahua). Mako Mining announced the resignation of its CEO and the appointment of its interim replacement (La Trinidad mine, Sinaloa). Tamino announced that it has retained the services of an experienced consultant geologist (El Volcan project, Sonora). Goldcorp announced fully support for the Nevada JV between Barrick and Newmont. Southern Copper showed interest to invest in a lithium project in Sonora.

 ON MEXICO ISSUES

  • Minera Cuzcatlán S.A. de C.V., the Mexican subsidiary of Fortuna Silver Mines Inc., recognized the contribution of women in mining and declared it is committed to continue promoting its inclusion.
  • Ternium, re-activated the ore transport from its Aquila mine in Michoacan after a group of indigenous people from the community of Santa Maria Ostula blocked the Mexican Federal Highway # 200 for 16 days.

ON EXPLORATION

  • Aztec Minerals Corp., and Kootenay Silver Inc., announced positive bottle roll gold metallurgical results from its Cervantes project in Sonora. Drill core samples were grouped into 4 separate types of mineralization: oxide 1, oxide 2, mixed oxide/sulphide, and sulphide, showing metallurgical recoveries of 85.1%, 87.7%, 77.9%, and 51.2% respectively on 2mm material, and 94.3%, 94.2%, 89%, and 78.5% on 75 micron material.
  • Sable Resources, released drilling results from holes M-DDH-19-18 and M-DDH-19-19 from its Margarita project in Chihuahua. Hole M-DDH-19-18 intersected 71 g/t Ag and 0.13% Zn (80 g/t AgEq) over 30.8m, including 174 g/t Ag and 0.15% Zn (186 g/t AgEq) over 3.7m, and 171 g/t Ag, 0.4% Pb, and 0.12% Zn (199 g/t AgEq) over 1.55m, while hole M-DDH-19-19 intersected 24 g/t Ag, 0.08% Pb, and 0.3% Zn (44 g/t AgEq) over 55m, including 94 g/t Ag, 0.3% Pb, and 2.4% Zn (238 g/t AgEq) over 2.05m. “The mineralized Margarita structure can now be traced continuously with drillholes for 1,400m along strike including a central core of high-grade veins and silicified fault zones surrounded by a wide, close to surface, low-grade Ag halo, hosted by silicified and fractured volcanic rocks.”
  • Prize Mining Corporation, announced plans for the next phase of exploration at its Manto Negro project in Coahuila “to further define the scale, grade, and potential of this district scale property”. The plan is to locate structural and geological traps where there is increase thickness in mineralization to test them with a 3,000 to 5,000 m core drilling program. “Following positive results, metallurgical testing will be completed as well as 3D interpretation on key areas”.
  • e-Power Metals, staked three new mining claims totaling 4,400 ha, located south of the Company´s high grade Magenta Au-Ag-Co project, where historical sampling on veins and skarn style deposits at the La Prieta old showings have returned results of 180.4 g/t Au, 202 g/t Ag, and 5.54% Co over 0.61m in Zone # 1; 194 g/t Au, 203 g/t Ag, and 8.14% Co from an adit dump; and 8.1 g/t Au, 53 g/t Ag, and 3.27% Co over 0.5m in Zone #2.
  • Excellon Resources Inc., reported first drilling results since 2010 from its Evolution property in Zacatecas. Significant drilling results are in hole EX18MAZ-251 with 22 g/t Ag, 0.4% Pb, 1% Zn, and 0.1 g/t Au (101 g/t AgEq) over 154m, including 188 g/t Ag, 4.4% Pb, 2.9% Zn, and 0.1 g/t Au (532 g/t AgEq) over 2.4m, and 48 g/t Ag, 0.7% Pb, 2.8% Zn, and 0.1 g/t Au (238 g/t AgEq) over 7m; hole EX18MAZ-253 with 14 g/t Ag, 0.3% Pb, 0.7% Zn, and 0.1 g/t Au (70 g/t AgEq) over 219m, including 70 g/t Ag, 1.3% Pb, 2.2% Zn, and 0.4 g/t Au (274 g/t Ag) over 12.6m; hole EX18MAZ-257 with 175 g/t Ag, 4.3% Pb, 5.4% Zn, and 0.4 g/t Au (663 g/t AgEq) over 3.4m; and hole EX18MAZ-258 with 64 g/t Ag, 1.4% Pb, 2.2% Zn, and 0.3 g/t Au (259 g/t AgEq) over 24.9m.

ON MINING

  • Alio Gold Inc., presented Q4 and full year 2018 production results from its San Francisco mine in Sonora. Alio produced 10.3K Oz Au and 4.2KOz Ag in Q4 2018 at AISC of $1,558 per Oz Au produced. Alio produced 54K Oz Au and 24.8K Oz Ag in 2018 at AISC of $1,258 per Oz.
  • Consolidated Zinc Limited, provided February 2019 production results from its Plomosas mine in Chihuahua. It reported 4,158 tonnes processed with Zn recoveries of 89% to Zn concentrates. Consolidated Zinc mined 3,873 tonnes of 9.6% Zn and 2.7% Pb to produce 815.4K Lb Zn and 235.2K Lb Pb.
  • Fortuna Silver Mines Inc., released Q4 and full year 2018 financial and production results from its San Jose mine in Oaxaca. It reported Q4 sales of $59.6M, net income of $2.2M, adjusted net income of $4.4M, and adjusted EDITDA of $22.7M. For the full year 2018 Fortuna reported sales of $263.3M, net income of $34M, adjusted net income of $38.4M, and adjusted EBITDA of $113.9M. The company milled 256,181 tonnes of 1.58 g/t Au and 230 g/t Ag to produce 11.8K Oz Au and 1.72M Oz Ag with metallurgical recoveries of 91% for both metals. Fortuna also reported an AISC of $7.1 for Oz Ag or $9.9 for Oz AgEq.
  • Impact Silver Corp., announced its financial and operating results for Q4, 2018. It reported $13.1M in revenues for 2018. Impact milled 173,217 tonnes of 170 g/t Ag to produce about 947K Oz Ag.
  • Leagold Mining Corporation, presented financial and production results from its Los Filos mine in Guerrero for the period Q4 and full year 2018. It reported revenues of $376.5M, and an adjusted EBIDTA of $89.5M for the full year 2018.Leagold produced 58,201 Oz Au in Q4 and 195,362 Oz Au for the full year 2018 at an AISC of $985 per Oz Au sold.
  • Starcore International Mines Ltd., announced financial and production results from its san Martin mine in Queretaro for the Q3 period ended January 31, 2019. It reported revenues of $6.6M and an EBIDTA of $335M for the nine months ended January 31, 2019. Starcore milled 71,100 tonnes of 1.8 g/t Au and 33 g/t Ag to produced 3.4K Oz Au and 46.2K Oz Ag (4K Oz AuEq).

ON FINANCING

  • Aura Minerals Inc., announced that is undertaking a non-brokered private placement to raise up to $0.5M.
  • Defiance Silver Corp., closed the first tranche of its non-brokered private placement for $1,229,500. The first tranche is part of the non-brokered private placement for total gross proceeds of $4M (San Acacio, Zacatecas).
  • Mexican Gold Corp., closed the final tranche of its non-brokered private placement for $2,143,000. Gross proceeds will be used on its Las Minas project in Veracruz.
  • McEwen Mining Inc., announced its voluntary termination of the equity distribution agreement on March 13, 2019 to offer shares from its common stock from time to time for up to $90M (Fenix project, Sinaloa).
  • Vangold Mining Corp., has arranged a non-brokered private placement for gross proceeds of up to 0.5M. It also announced a consolidation of their shares in which the company will trade 2 old shares for 1 new share (Pinguino project, Guanajuato).
  • XTierra Inc., announced its intention to raise from a non-brokered private placement up to $1M. (Bilbao project, Zacatecas).
  • Sierra Metals Inc., closed a six year senior secured a corporate credit facility for up to US$100M effective on March 08, 2019 (Cusi mine, Chihuahua).

ON RESOURCES AND DEVELOPMENT

  • SilverCrest Metals Inc., updated mineral resource estimate for its Las Chispas project in Sonora, effective February 8, 2019. The infill drilling program at Las Chispas has delineated an initial indicated mineral resource estimate of 1M tonnes of 6.98 g/t Au and 711 g/t Ag (1,234 g/t AgEq), containing 39.8M Oz AgEq. Inferred mineral resource are estimated at 3.6M tonnes of 3.32 g/t Au and 332 g/t Ag (581 g/t AgEq), containing 68.1M Oz AgEq.
  • Orla Mining Ltd., filed a PEA amended technical report on its Camino Rojo project in Zacatecas. “The PEA supports a technically simple open-pit mine and heap-leach operation that offers low capital and operating costs, rapid payback, and strong financial performance. The PEA is based on near-surface oxide and partly oxidized (transitional) material within the overall resource, all located within Orla’s mineral concessions”. Highlights of the PEA are a pre-tax NPV (5%) of USD$231 and an IRR of 38.1% or after-tax NVP (5%) of USD$121M and an IRR of 24.5%; production rate per day of 18K tonnes; total material to leach pad of 42.5M with grades of 0.71 g/t Au and 13.6 g/t Ag (966K Oz Au and 18.5M Oz Ag contained) with metallurgical recoveries of 67% and 15% respectively; and an annual gold production of 97.5K Oz Au. It also reported that it is advancing its project towards a construction decision later this year and ensuring the company remains on track with the development of its first mine. Orla is also advancing the feasibility study on its Camino Rojo project which is expected to be completed by the end of Q3, 2019. Construction is expected to start during H2, 2020 following receipts of all necessary permits.
  • Leagold Mining Inc., announced a mine expansion FS in March 2019 which incorporates “the potential for developing the Bermejal underground mine, enlarging the Los Filos open pit mine, re-phasing the Bermejal open pit into two distinct sections (Bermejal and Guadalupe), and building a 4,000 tonne per day (tpd) carbon-in-leach (CIL) plant to complement the existing heap leach facilities”.
  • Telson Mining Corporation, released significant assay results from underground development on the Creston Zone at its Tahuehueto mine in Durango. Significant channel sampling results are 8.48 g/t Au, 104 g/t Ag, 0.85% Cu, 5.8% Pb and 11% Zn (20.9 g/t AuEq) over 4.95m; 5.66 g/t Au, 62 g/t Ag, 0.26% Cu, 3.6% Pb, and 7.4% Zn (13.24 g/t AuEq) over 3m; 8.89 g/t Au, 88 g/t Ag, 0.34% Cu, 2.3% Pb, and 6.3% Zn (15.54 g/t AuEq) over 3m; 11.87 g/t Au, 78 g/t Ag, 0.54% Cu, 2.7% Pb, and 4% Zn (17.59 g/t AuEq) over 3.35m; and 8.12 g/t Au, 134 g/t Ag, 0.44% Cu, 2.4% Pb, and 4% Zn (14.13 g/t AuEq) over 3.25m.

ON DEALS AND CORPORATE ISSUES

  • Aura Resources Inc., appointed new CEO and made changes of its Board of Directors. The company also entered in a definitive agreement with Minaurum Gold Inc., in which Minaurum can acquire an 80% interest on its East Taviche project in Oaxaca.
  • Coeur Mining Inc., appointed former Nevada Governor to its Board of Directors.
  • Mako Mining Corp., announced the resignation of its CEO and the appointment of its interim replacement (La Trinidad mine, Sinaloa).
  • Tamino Minerals Inc., retained the services of an experienced geological consultant to assist them to achieve its goals within its mining exploration projects in order to meet corporate milestones (El Volcan project, Sonora).
  • Goldcorp Inc., announced fully support for the Nevada JV between Barrick Gold Corporation and Newmont Mining Corporation.
  • Southern Copper Corp., showed interest to invest in a Canadian owned lithium project in Sonora, on which a Chinese company seems to be also interested. Southern Copper has not made an offer yet and did not reveal the name of the lithium 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, large barite crystals and manganese oxides in a low-intermediate sulphidation epithermal system in Chihuahua, Mexico.  Photo by Miguel A Heredia.

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

By Jorge Cirett

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

ON MEXICO ISSUES

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

ON EXPLORATION

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

ON MINING

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

ON FINANCING

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

ON RESOURCES AND DEVELOPMENT

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

ON DEALS AND CORPORATE ISSUES

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

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

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

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

Hydrothermal breccia

By Miguel A Heredia

During the seventh week of the year (February 25th to March 03th, 2019), at least 21 press releases were announced by companies working in Mexico, with eight informing on exploration results, five communicating production results, three reporting on resources and development of their properties, three announcing financing rounds, and two disclosing deals and corporate issues. ON MEXICO ISSUES, no relevant news.  ON EXPLORATION, In Sonora, Minaurum and First Majestic reported drilling results from its Alamo Silver and Ermitaño projects respectively. In Chihuahua, Sable reported drilling results from its Margarita project; Mammoth and its partner Centerra provided an update on exploration activities at its Tenoriba project; and Evrim-Coeur commenced a drilling program at its El Sarape project. In Durango, Southern Silver released drill results from its Cerro Las Minitas project. In Guanajuato, Plata Latina announced results from the 2017-2018 drilling program at its Naranjillo project. In Veracruz, Azucar Minerals released drill results from its El Cobre project.  ON MINING, Gold Resource reported Q4 and full year 2018 production results from its Oaxaca Mining Unit in Oaxaca. Premier Gold provided 2019 production guidance for its Mercedes mine in Sonora. Fresnillo plc announced full year 2018 production results from their mining operations. ON FINANCING, Advanced Gold closed a private placement for $369,950 (Tabasqueña project, Zacatecas). Riverside increased its previously non- brokered private placement from $1.5M to $2.3M. Silver Spruce closed a non-brokered private placement for $434,221 (Pino de Plata project, Chihuahua). Evrim provided an update. ON RESOURCES AND DEVELOPMENT, Goldplay announced positive metallurgical results from its San Marcial project in Sinaloa. Mexus Gold confirmed its plan to mine 3,500 tonnes per week from its Santa Elena project in Sonora. Gold Resource updated annual reserve estimates at its Oaxaca Mining Unit in Oaxaca. ON DEALS AND CORPORATE ISSUES, Azure appointed key advisor for the funding to develop its Oposura project in Sonora. Aloro signed a new surface access agreement with the Mulatos Ejido (Los Venados project, Sonora).

 ON MEXICO ISSUES

  • No relevant news

ON EXPLORATION

  • Minaurum Gold Inc., reported drilling results from its Alamo Silver project in Sonora, demonstrating that three of the new veins mapped host significant mineralization at depth and have the potential for silver­-rich shoot along strike and at depth. Highlights from Phase II drilling of the new veins include 198 g/t Ag, 0.17%Cu, 0.2%Pb, and 0.9%Zn or 269 g/t AgEq over 9.6m in hole AL18-015, including 302 g/t Ag, 0.21%Cu, 0.5%Pb, and 0.8%Zn over 0.9m (San Jose Vein), and 25 g/t Ag, 2.3%Pb, 10.6%Zn or 618 g/t AgEq over 2.85m in hole AL18-011, including 40 g/t Ag, 3.6%Pb, and 16.5%Zn over 1.75m (Ana Vein).
  • First Majestic Silver Corp., announced drill results from its Ermitaño project in Sonora. Significant drill results are 3.4 g/t Au and 53 g/t Ag (327 g/t AgEq) over 30.1m in hole EW-18-35, including 19.4 g/t Au and 139 g/t Ag (1,691 g/t AgEq) over 0.5m and 18.7 g/t Au and 118 g/t Ag (1,614 g/t AgEq) over 0.7m; 11.1 g/t Au and 128 g/t Ag (1,019 g/t AgEq) over 11.2m in hole EW-18-36, including 19.8 g/t Au and 307 g/t Ag (1,891 g/t AgEq) over 1.1m, 70.8 g/t Au and 567 g/t Ag (6,231 g/t AgEq) over 1.3m, 20.1 g/t Au and 122 g/t Ag (1,730 g/t AgEq) over 1.3m, and 32 g/t Au and 326 g/t Ag (2,886 g/t AgEq) over 1.4 m; 6.3 g/t Au and 149 g/t Ag (654 g/t AgEq) over 17.6m in hole EW-18-39, including 17 g/t Au and 520 g/t Ag (1,879 g/t AgEq) over 0.6m, 20.1 g/t Au and 369 g/t Ag (1,980 g/t AgEq) over 1.2m, 8.6 g/t Au and 387 g/t Ag (1,074 g/t AgEq) over 1m, 15.5 g7t Au and 149 g/t Ag (1,392 g/t AgEq) over 1m, 10.4 g/t Au and 180 g/t Ag (1,010 g/t AgEq) over 1m, and 14.4 g/t Au and 192 g/t Ag (1,342 g7t AgEq) over 1.2m; and 3.9 g/t Au and 95 g/t Ag (403 g/t AgEq) over 28.3m in hole EW-18-47, including 21.1 g/t Au and 434 g/t Ag (2,125 g/t AgEq) over 1.1m, 10.4 g/t Au and 184 g7t Ag (1,019 g/t AgEq) over 1.4m, and 11.8 g/t Au and 160 g/t Ag (1,100 g/t AgEq) over 2.1m.
  • Sable Resources, presented the first drill results from the stage II drilling program at its Margarita project in Chihuahua. Highlights are 283 g/t Ag, 0.3%Pb, and 0.8%Zn (298 g/t AgEq) over 33.3m, including 579 g/t Ag, 0.8%Pb, and 1.7%Zn (702 g/t AgEq) over 9.9m in hole M-DDH-19-14, and 101 g/t Ag, 0.5%Pb, and 0.04%Zn (141 g/t Ag) over 4.7m, including 302 g/t Ag, 1.73 g/t Au, and 0.04%Zn (527 g/t AgEq) over 1.2m in hole M-DDH-19-15. Results from hole M-DDH-19-15 allow to extend the strike length of the Margarita structure a further 250m to the southeast. True widths are estimated to be 90% of the intercept based on vein to core angle.
  • Mammoth Resources Corp., and its partner Centerra Gold Inc., provided an update on exploration activities at its Tenoriba project in Chihuahua. Work has commenced and include to continue the mapping and sampling of areas previously evaluated by Mammoth, to cover infill and extensions of these areas, in order to enhance the understanding of the geological features relevant to Au-Ag mineralization, and perform an IP and Mag geophysical survey over the 40% of the mineralized trend already cover by a previous survey, and extend the coverage over portions of the 60% of the mineralized trend not yet covered by any IP-Mag geophysics. After completing these activities, the plan is to drill test new targets generated by mapping, sampling and geophysics surveys.
  • Evrim Resources Inc., and Coeur Mining Inc., commenced a 2,500m drilling program to test the two main targets at its Sarape project in Chihuahua. “Drilling is planned to test the Sarape and Chiltepin veins; targets that have potential for significant gold-silver shoots beneath zones of favourable geochemistry.”
  • Southern Silver Exploration Corp., released final results from the 2018 drilling program at its Cerro Las Minitas project in Durango. Significant results from the most recent drilling program carried out in the central part of the Skarn Front are 409 g/t Ag, 0.9% Cu, 0.8%Pb, and 8.4%Zn (871 g/t AgEq; 24.6% ZnEq) over 2.6m (2m TW), including 477 g/t Ag, 3.7%Cu, 0.6%Pb, and 32.3%Zn (2,181 g/t AgEq; 61.1% ZnEq) in hole 18CLM-115, and 640 g/t Ag, 1%Cu, 16.7% Pb, and 22.4% Zn (2,117 g/t AgEq; 59.8%ZnEq) over 1m (0.8mTW) in hole 18CLM-115. At Las Victorias Zone, hole CLM-117 intersected 202 g/t Ag, 1.6 g/t Au, 3.8%Pb, and 1.8% Zn (501 g/t AgEq, 14.2% ZnEq) over 2.3m (1.2m TW), and 71 g/t Ag, 0.1%Pb, and 3.3% Zn (220 g/t AgEq, 6.2% ZnEq) over 2.8m (2.4m TW).
  • Plata latina Minerals Corporation, announced results from the 2017-2018 drilling program carried out by Metalurgica Reyna S.A. de C.V., a wholly owned subsidiary of Fresnillo plc at its Naranjillo project in Guanajuato. Highlights include 5,507 g/t Ag and 34.74 g/t Au (8,401 g/t AgEq) over 3.13m (TW) in hole CB-96; 4,978 g/t Ag and 5.57 g/t Au (5,443 g/t AgEq) over 2.31m (TW); and 3,598 g/t Ag and 32.10 g/t Au (6,272 g/t AgEq) over 4.72m (TW). “The drill results from Naranjillo continue to demonstrate the discovery of a significant and extensive epithermal vein system, typical of the Mexican Silver Belt”.
  • Azucar Minerals Ltd., released drill results from its El Cobre project in Veracruz. Significant drill results from the Villa Rica area are 0.23 g/t Au and 0.15%Cu over 161.20m, including 0.51 g/t Au and 0.43%Cu over 18m in hole EC-18-052; 0.21 g/t Au and 0.16%Cu over 116.30m, including 0.85 g/t Au and 0.39%Cu over 12.40m in hole EC-18-054; and 0.14 g/t Au and 0.16%Cu over 87m, including 0.34 g/t Au and 0.35%Cu over 12m in hole EC-18-057.

ON MINING

  • Gold Resource Corporation, reported Q4 and full year 2018 production results from its Oaxaca Mining Unit in Oaxaca. In Q4, 163,999 tonnes were milled to produce 7,974 Oz Au, 330.6K Oz Ag, 990K Lb Cu, 4.5M Lb Pb, and 12.48m Lb Zn. In 2018, the company milled 611,670 tonnes to produce 26.8K Oz Au, 1.67M Oz Ag, 3.7M Lb Cu, 16.3M Lb Pb, and 44.37M Lb Zn.
  • Premier Gold Mines Limited, provided a guidance production for its Mercedes mine in Sonora, where it expects to produce in the year 2019 over 75K-85K Oz Au and 225K-250K Oz Ag with a cash cost of US$730-750 per Oz Au or US$900-950 AISC per Oz Au.
  • Great Panther Silver Limited, presented Q4 and full year 2018 production results from its mining operations. The company did not report figures by unit mine. During Q4, it milled 89,270 tonnes to produce 438K Oz Ag, and 4.1K Oz Au or 951.8K Oz AgEq, with a cash cost of $12.88 per Oz AgEq or an AISC of $15.62 per Oz AgEq for Q4, and $12.63 and $15.72 respectively for the full year 2018.
  • First Majestic Silver Corp., announced Q4 and full year 2018 production results from their Mexican operations. A summary is shown in the tables below:

  • Fresnillo plc., announced full year 2018 production results from their mining operations in Mexico. The company produced 61.8M Oz Ag and 923K Oz Au in 2018. A summary by mine is shown in the table below:

ON FINANCING

  • Advanced Gold Corp., closed a private placement for $369,950. Net proceeds will be used to fund the phase 3 drilling at its Tabasqueña project in Zacatecas.
  • Riverside Resources Inc., increased its previously announced non-brokered private placement from $1.5M to $2.3M. Gross proceeds will be used to fund a drilling program at its Cecilia project in Sonora, additional project acquisitions, and target refinement on existing projects.
  • Silver Spruce Resources Inc., closed a non-brokered private placement for $434, 221. Gross proceeds will be used to prepare initial drilling of its Pino de Plata project in Chihuahua.

ON RESOURCES AND DEVELOPMENT

  • Goldplay Exploration Ltd., announced positive metallurgical recoveries for initial test work from its San Marcial project in Sinaloa. 74 drill core samples were selected from the mineralized zone, including the oxide transition and sulphide mineralization with a total of 146 Kg. Metallurgical results indicate that the high grade Ag mineralization is amenable to standard cyanidation processing with recoveries ranging from 82% to 92% Ag.
  • Mexus Gold US, confirmed that with its first stage of exploratory core drilling complete, it is moving forward with its plan to mine 3,500 tonnes per week from Julio II area within its Santa Elena project in Sonora.
  • Gold Resource Corporation, updated annual reserve estimates as of December 31, 2018 at its Oaxaca Mining Unit in Oaxaca. Proven and probable reserves are 3,077,200 tons of 1.82 g/t Au and 127 g/t Ag (3.5 g/t AuEq) for a total of 180.3K Oz Au and 12.6M Oz Ag (346.6 g/t AuEq). Mineralized material (exclusive of proven and probable reserves) are 1,936,500 tons of 1.5 g/t Au and 125 g/t Ag (3.13 g7t AuEq) for 96K Oz Au and 7.5M Oz Ag (195.3K Oz AuEq).

ON DEALS AND CORPORATE ISSUES

  • Azure Minerals Limited, appointed key adviser for the funding to develop its Oposura project in Sonora.
  • Aloro Mining Corp., signed a new three year surface agreement with the Mulatos Ejido that allows Aloro to built roads for drilling and collar up to 50 drillholes.

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 hydrothermal breccia cemented by calcite-quartz in a low-intermediate sulphidation epithermal vein system in a project in Chihuahua, Mexico.  Photo by Miguel A Heredia.

 

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

By Jorge Cirett

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

ON MEXICO ISSUES

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

ON EXPLORATION

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

ON MINING

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

ON FINANCING

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

ON RESOURCES AND DEVELOPMENT

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

ON DEALS AND CORPORATE ISSUES

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

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

On the image below, quartz-sulfide sheeted veinlets with sericitic halos in an intrusive rock from a porphyry copper project in Michoacan. Picture by Jorge Cirett.

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

“Quartz blade” texture in a low sulphidation epithermal vein

By Miguel A Heredia

During the seventh week of the year (February 11th to February 17th, 2019), at least 32 press releases were announced by companies working in Mexico, with twelve communicating production results, seven informing on exploration results, six disclosing deals and corporate issues, three announcing financing rounds, three reporting on resources and development of their properties, and one discussing Mexican issues. ON MEXICO ISSUES, Michael Harvey, director of Corporate Affairs for GoldCorp declared that Zacatecas has lost attractiveness for mining.  ON EXPLORATION, In Sonora, Silver One commenced a 1,000m drilling program at its Peñasco Quemado project,  SilverCrest reported drill results and discover of the Babi Sur Vein within its Las Chispas project, and Silver Viper provided an update of the 2018 drilling program at its La Virginia project. In Chihuahua, Evrim and its partner, Harvest Gold reported drilling results from its Cerro Cascaron project, and Ethos received permits for trenching and drilling its La Purisima Au project. In Jalisco, Evrim reported drilling results from its Cuale project. In the State of Mexico, Candente commenced a drilling program to explore near surface drill targets at its El Oro project.  ON MINING, Alio provided an update of the operation of its San Francisco mine in Sonora. Hecla reported Q4, 2018 production results from its San Sebastian mine and Avino reported full 2018 year production from its Avino mine in Durango. Capstone presented Q4 and full year 2018 production results from its Cozamin mine in Zacatecas. Santacruz Silver announced Q4 and full year 2018 production results from their Mexican operations. Telson released full year 2018 production results from its Campo Morado mine in Guerrero.  Consolidated Zinc presented January 2019 production results from its Plomosas mine in Chihuahua. Fortuna reported and confirmed no contamination of soil at its San Jose mine in Oaxaca.  ON FINANCING, Auxico closed a non-brokered private placement for gross proceeds of $400K (Zamora project, Sinaloa). Riverside announced a private placement to raise gross proceeds for CAD$1.5M (Cecilia project, Sonora). Magna Gold announced a proposed non-brokered private placement for gross proceeds of up to CAD$3.2M (Mercedes project, Sonora).  ON RESOURCES AND DEVELOPMENT, Fortuna Silver announced results from the brownfield exploration program conducted at its San Jose mine in Oaxaca.  Torex announced infill drill results from its El Limon Deep project in Guerrero. Bacanora Lithium provided an update of the H2 activities developed at its Sonora Lithium project in Sonora. Hecla increased mineral resource at its San Sebastian mine in Durango. ON DEALS AND CORPORATE ISSUES, Sonoro announced management appointments (Cerro Caliche, Sonora).  Prospero Silver provided an update of its option agreement with Fortuna Silver on its Pachuca SE property in Hidalgo. Great Panther announced the approval from their shareholders to acquire Beadell Resources and change its name to Great Panther Mining Limited (Topia mine, Durango). Evrim granted 200K stock options to their employees (Cuale project, Jalisco). Magna Gold provided an update of its option agreement to acquire 100% interest on the Mercedes property in Sonora. Telson announced that they have identified a sophisticated concentrate theft from its Campo Morado mine in Guerrero during its transportation to the Trafigura warehouses in the Manzanillo port.

 ON MEXICO ISSUES

  • Michael Harvey, director of Corporate Affairs for GoldCorp Inc., declared that Zacatecas has lost attractiveness for mining after the Supreme Court of Justice of the Nation (SCJN) declared constitutional 4 taxes called ecological (Extraction of Minerals, Emission of Gases to the Atmosphere, Emission of Contaminants to the Soil, Subsoil and Water and the Deposit and Storage of Residues) on the mining sector. It sends a very negative signal about the stability of the investment in Zacatecas.

ON EXPLORATION

  • Silver One Resources Inc., commenced a 1,000m drilling program at its Peñasco Quemado project in Sonora. The drilling program will test three targets selected on coincidental geochemical and geophysical anomalies. The company will test two targets in the eastern part of the property: a) the down-dip extension of the drill defined historic Ag resource area, interpreted as a shallow southwest-dipping replacement manto, coincident with a low-intermediate resistivity anomaly, and b) the along-strike extension of the historic Ag resource area as identified by strong > 3 km long southeast trending Zn, Pb, Ba, and Mn in soil anomalies and partially coincident with geophysical anomalies. In the western part of the property, Silver One will test strong Zn, Pb, and Cu soil anomalies with coincidental geophysics in an area drill tested by Silvermex in 2008 where significant intersections were encountered as that in Hole PQRC51 with 4.5m of 340 g/t Ag at a depth of 88m from surface.
  • SilverCrest Metals Inc., reported drill results and discover of the Babi Sur Vein within its Las Chispas project in Sonora. Highlights results are Hole BAS18-31 which intersected 2.2m (TW) of 18.78 g/t Au and 2,147 g/t Ag (3,556 g/t AgEq), and Hole BAS18-07 with 2.2m of 4.63 g/t Au and 209 g/t Ag (556 g/t AgEq). “The high-grade footprint of the Babi Sur Vein has been drill intercepted with 14 core holes over approximately 1.5 km strike length. Of the 14 intercepts with an average true width of 1.4 metres, six are greater than 400 g/t AgEq (400 to 3,555 g/t AgEq)”.
  • Silver Viper Minerals Corp., provided an update of the 2018 drilling program conducted at its La Virginia project in Sonora. 4,753m were completed in 20 core drill holes, over five distinct prospect areas, distributed along 11km of the prospective structural trend. “The highlight of 2018 was El Rubi, a never-before drilled showing, located some 1.5km north of any previous drilling.  El Rubi returned a best result of 6m true width (13.3m core length) averaging 3.16 g/t gold and 228g/t silver for a gold equivalent grade of 6.42g/t Au”.
  • Ethos Gold Corp., received the approved permits for trenching and drilling its La Purisima Au project in Chihuahua. Ethos announced the commencement of the trenching program and expects to start the drilling program in March, 2019. The target area is at least 2km long and has not seen modern and systematic exploration. The company has estimated an initial and modest budget of approximately US$350K to conduct trenching and drilling at La Purisima project.
  • Evrim Resources Corp., and its partner Harvest Gold Corp., reported drill results from their Cerro Cascaron project in Chihuahua. Nine core drill holes were completed at Serpiente Dorada, San Pedro, and Cascarita target areas for a total of 1,885m. Assay results have been received for only seven of the nine holes drilled to date. Significant drill interceptions were encountered in Hole SPT 18-01 (Serpiente Dorada target area) with 6.5m of 3.29 g/t Au and 6 g/t Ag, including 1m of 20.1 g/t Au and 22 g/t Ag, and Hole SPED 19-02 (San Pedro target area) with 4.8m of 1.02 g/t Au and 13 g/t Ag and 0.35m of 5.39 g/t Au and 24 g/t Ag.
  • Evrim Resources Corp., released additional drilling results from its Cuale project in Jalisco. Evrim has received assays from ten core drill holes completed in 2018 for a total of 2,179m. Significant drill intersections were encountered in Hole GLR18-04 with 32m of 0.83 g/t Au from surface, including 22m of 1.06 g/t Au, and a deeper interval with 12m of 0.34% Cu; Hole GLR18-09 with 11m of 0.31 g/t Au from 36m downhole, and Hole GLD18-10 with 4m of 0.42% Cu from 136m downhole.
  • Candente Gold Corp., begun a drilling program to test near surface drill targets at its El Oro project in the State of Mexico. “The Company remains committed to pursue drill targets previously developed on the San Rafael vein in the Mexico-Esperanza mine border area where three holes intersected high grades of gold and silver (30.7 g/t Au over 1.9m; 18.1 g/t Au and 137 g/t Ag over 0.4m, and 16.7 g/t Au and 32 g/t Ag over 1.4m) in the San Rafael and parallel veins as well as disseminated gold (1.0 g/t Au over 75m) in the overlying porous tuff horizon and has decided to develop more shallow targets as well”. The first target to be drill tested is the Cortaduras area which is about 6.5km west of the San Rafael vein and 5km west of the Veta Verde vein from which 6.4M Oz Au and 74 M Oz Ag (8M Oz AuEq) were produced historically in 4 mines.

ON MINING

  • Alio Gold Inc., reported that 528,770 tonnes of stockpile with a grade of 0.31 were stacked on the leach pads. Au production for the month of January was consistent with Q4 production at approximately 3,890 Oz (subject to finalization and refinery adjustments). Alio also announced that they have sufficient stockpiles to operate at this capacity throughout 2019 while the company continues developing an engineered plan for recommencing mining activities.
  • Hecla Mining Company, presented Q4, 2018 production results from its San Sebastian mine in Durango. Hecla processed 156,733 tonnes at the mill to produce 2.04M Oz Ag and 14,979 Oz Au.
  • Avino Silver & Gold Mines Ltd., released full 2018 production results from its Avino mine in Durango. In 2018, the company produced 1.28M Oz Ag, 8,100 Oz Au, and 4.8M Lb Cu (or 2.8 M Oz AgEq).
  • Capstone Mining Corp., presented Q4 and full year 2018 production results from its Cozamin mine in Zacatecas. In Q4, 2018, Capstone produced 9.3M Lb Cu for a total of 155.2M Lb Cu produced in the full year. Zn production in 2018 totaled 15M Lb Zn.
  • Santacruz Silver Mining Ltd., announced Q4 and full year production results from their Mexican operations. At its Veta Grande mine in Zacatecas, Santacruz milled 36,719 tonnes of 81 g/t Ag to produce 58.9K Oz Ag, 113 Oz Au, 660.8K Lb Pb, and 891K Lb Zn. In the full year, 150,281 tonnes were milled with a grade of 73 g/t Ag to produce 190.3K Oz Ag, 367 Oz Au, 1.76M Lb Pb, and 2.5M Lb Zn. At its El Rosario mine in San Luis Potosi, the company milled 16,676 tonnes of 42 g/t Ag to produce 18.9K Oz Ag, 131 Oz Au, 89.6K Lb Pb, and 358.4 Lb Zn. In the full year, Santacruz milled 61,184 tonnes of 43 g/t Ag to produce 72.4K Oz Ag, 379 Oz Au, 286.7 Lb Pb, and 2.3M Lb Zn.
  • Telson Mining Corporation, released full year production results from its Campo Morado mine in Guerrero. In 2018, Telson processed 585,601 tonnes of 1.02 g/t Au, 118 g/t Ag, 1.1% Pb, 4.3% Zn, and 0.37% Cu to produce 2,870 Oz Au, 622.3K Oz Ag, 4M Lb Pb, 36.3M Lb Zn, and 373.3K Lb Cu.
  • Consolidated Zinc Limited, presented January 2019 production results from its Plomosas mine in Chihuahua. The company mined 3,530 tonnes of 10.3% Zn and 3.3% Pb to produce 813K Lb Zn and 262K Lb Pb, with metallurgical recoveries of 84% and 85% respectively.
  • Fortuna Silver Mines Ltd., reported and confirmed that the overflow of the contingency pond at its San Jose mine in Oaxaca did not contaminate soils, and therefore no remediation is required. PROFEPA has already completed its investigation and confirmed the no contamination of soils from the overflow.

ON FINANCING

  • Auxico Resources Canada Inc., closed a non-brokered private placement for gross proceeds of $400K (Zamora project, Sinaloa).
  • Riverside Resources Inc., announced a plan to complete a non-brokered private placement to raise gross proceeds for CAD$1.5M. Net proceeds will be used to drill its Cecilia gold project in Sonora.
  • Magna Gold Corp, announced a proposed non-brokered private placement for gross proceeds of up to CAD$3.2M.

ON RESOURCES AND DEVELOPMENT

  • Fortuna Silver Mines Inc., reported results from the brownfield exploration program conducted at its San Jose mine in Oaxaca. The brownfield exploration program comprised 50.904m in 105 holes completed with up to six rigs in 2017 and 2018. Victoria is a primary target explored by underground drilling in which 27,302m in 53 holes were collared. Drill highlights include Hole SJOM781 with 13.5m (TW) of 119 g/t Ag and 0.57 g/t Au, Hole SJOM789 with 3m (TW) of 404 g/t Ag and 2.81 g/t Au, Hole SJOM794 with 6.3m (TW) of 213 g/t Ag and 1.24 g/t Au, Hole SJOM830 with 5.3m (TW) of 273 g/t Ag and 2.1 g/t Au, and Hole SJOM833 with 7.8m (TW) of 217 g/t Ag and 1.72 g/t Au. “Following the successful exploration results for 2018, the Company has allocated US$4.5 million to continued brownfield exploration at San Jose in 2019, including an estimated 11,500 meters of surface and underground diamond drilling and 450 meters of underground development for exploration drilling”.
  • Torex Gold Resources Inc., released results of the first 32 holes of its infill drill program completed at its El Limon Deep Zone project in Guerrero, which is the downdip extension of mineralization below the El Limon open pit. Significant drill intersections were encountered in Hole LDUG-026 with 8.5m of 25 g/t Au, Hole LDUG-013 with 7.5m of 24.9 g/t Au, Hole LDUG-021 with 15.2m of 16.8 g/t Au, and Hole LDUG-002 with 45.9m of 12.5 g/t Au.
  • Bacanora Lithium Plc., provided an update of the H2, 2018 activities developed at its Sonora Lithium project in Sonora. Bacanora has secured US$240M as part of the financing package to construct an initial 17,500 tpa Li carbonate operation and continues discussions with industry and strategic financial parties with regards to completing Sonora’s finance package. The company also obtained and unrestricted access to develop and operate the Sonora mine secured following acquisition of La Ventana and La Joya mineral concessions for US$2.9M with the final consideration settled in August 2018. The processing plant sites change of land use permission was approved and augments the Manifestación de Impacto Ambiental (MIA-Environmental impact assessment permissions) for the project and the MIA for permanent road construction previously approved in 2018.These developments enable the project to commence construction, immediately after the project financing package is completed.
  • Hecla Mining Company, increased reserves and mineral resources at its San Sebastian mine in Durango. Proven reserves are 22,000 tonnes of 121 g/t Ag and 2.48 g/t Au (85K Oz Ag and 2K Oz Au contained), and probable reserves are 206,000 tonnes of 407 g/t Ag and 3.11 g/t Au (2.7M Oz Ag and 21K Oz Au contained). Total proven and probable reserves are 228,000 tonnes of 382 g/t Ag and 3.11 g/t Au (2.79M Oz Ag and 23K Oz Au contained).Indicated resources at San Sebastian are 2,243,000 tonnes of 202 g/t Ag, 1.55 g/t Au, 2.5% Pb, 3.5% Zn, and 1.6% Cu (14.7M Oz Ag, 115K Oz Au, 68.12M Lb Pb, 95.7M Lb Zn, and 44.3M Lb Cu contained). Inferred resources are 3,487,000 tonnes of 205 g/t Ag, 1.24 g/t Au, 1.7% Pb, 2.5% Zn, and 1.3% Cu (22.9M Oz Ag, 143K Oz Au, 27.1M Lb Pb, 39M Lb Zn, and 19.9M Lb Cu contained). Hecla also presented Q4 2018 drill results conducted with three core drill rigs and one RC drill. One underground drill rig completed in-fill drilling in the central and upper portion of the oxide zone along the Middle vein. Additionally, two core drill rigs tested shallower oxide mineralization along the West Francine, Esperanza veins and El Toro vein. Highlights drill results at the Middle vein are 3.6m of 2,080 g/t Ag and 6.84 g/t Au, at West Francine are 0.43m of 295 g/t Ag and 0.62 g/t Au, and at El Toro vein are 3.6m of 305 g/t Ag and 4.04 g/t Au, and 3.05m of 127 g/t Ag and 4.04 g/t Au.

ON DEALS AND CORPORATE ISSUES

  • Sonoro Metals Corp., announced the appointment of its Executive Director and Corporate Secretary (Cerro Caliche, Sonora).
  • Prospero Silver Corp., announced that TSX approved its option agreement with Fortuna Silver Mines Inc., in which Fortuna can earn up to 70% interest in the Pachuca SE property in Hidalgo.
  • Great Panther Silver Limited, announced the approval from their shareholders to acquire Beadell Resources Limited and to change its name to Great Panther Mining Limited.
  • Evrim Resources Corp., granted 200K options to their employees. The stock options are exercisable at a price of $0.32 per share for a period of five years.
  • Magna Gold Corp., provided an update of its option agreement on the Mercedes property in Sonora, to acquire 100% interest in two mining concessions for a four year period. These mining concessions cover approximately 345 hectares and Magna is entitled to acquire 100% interest by paying to the seller an aggregate of US$1.34M plus VAT of 16% in installments commencing on the 6th month from the effective date, and ending  on the 48th from the effective date; issue to the seller 3% NSR capped at US$3.5M and subject to the right of Magna to acquire all the NSR at a price of US$0.5M  per percentage point within the first three years of commercial production of the Mercedes property, and conditional on the completion of a going public transaction within six months of the effective date, issue 2,442, 105 common shares.
  • Telson Mining Corp., announced that the company has identified a sophisticated criminal operation to intercept concentrate trucks, remove some part of the Campo Morado concentrates and replace the same with lower quality concentrates. Now the company has taken measures to eliminate this issue with increased security including performing monitored and guarded concentrate transport from the mine to point of sale.

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 Jalisco, Mexico.  Photo by Miguel A Heredia.

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

By Jorge Cirett

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

ON MEXICO ISSUES

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

ON EXPLORATION

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

ON MINING

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

ON FINANCING

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

ON RESOURCES AND DEVELOPMENT

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

ON DEALS AND CORPORATE ISSUES

  • No Relevant News.

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

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

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

 

Mesothermal quartz structure

By Miguel A Heredia

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

ON MEXICO ISSUES

  • No relevant news.

ON EXPLORATION

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

ON MINING

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

ON FINANCING

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

ON RESOURCES AND DEVELOPMENT

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

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

ON DEALS AND CORPORATE ISSUES

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

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

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

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

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

By Jorge Cirett

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

ON MEXICO ISSUES

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

ON EXPLORATION

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

ON MINING

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

ON FINANCING

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

ON RESOURCES AND DEVELOPMENT

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

ON DEALS AND CORPORATE ISSUES

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

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

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

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

Kaolin in a Hg prospect

By Miguel A Heredia

During the third week of the year (January 14th to January 20th, 2019), at least 31 press releases were announced by companies working in Mexico, with thirteen communicating production results, eight informing on exploration results, seven disclosing deals and corporate issues, one announcing financing rounds, one discussing Mexican issues, and one reporting a feasibility study for mine expansion on its property. ON MEXICO ISSUES, Napoleon Gomez Urrutia, mining leader and senator of the MORENA party, declared that is ready to go over the mining companies that do not pay enough taxes, pollute the environment and have too much ground in mining concessions.  ON EXPLORATION, In Sonora, San Marco, Silver Viper, Mexus, Sonoro, and Ridgestone announced drilling results from their Chunibas, La Virginia, Santa Elena, Cerro Caliche, and Rebeico properties respectively. In Chihuahua, Mammoth posted a technical report on its 2017-2018 drilling program at its Tenoriba project, and VVC released drilling results from its Samalayuca project.  In Sinaloa, Goldplay outlined 5 new exploration targets at its San Marcial project.  ON MINING, Alamos Gold, Alio, Premier, Coeur, GoGold, McEwen, Excellon, Avino, Hecla, Goldcorp, Fortuna and First Majestic reported Q4 and full year 2018 production results from their Mexican operations. Mako Mining reported that are pumping water from its Taunus pit at La Trinidad mine in Sinaloa and expect to commence mining by month end.  Great Panther provided 2019 production and cost guidance for their Mexican operations. ON FINANCING, Impact closed the second and final tranche of a non-brokered private placement for $1.19M for a total raise of $1.7M.  ON RESOURCES AND DEVELOPMENT, Leagold announced a feasibility study for the expansion of its Los Filos mine in Guerrero. ON DEALS AND CORPORATE ISSUES, Goldplay announced the listing of its shares on the Frankfurt Stock Exchange (San Marcial, Sinaloa). Mako reported that now holds a 100% interest in the La Trinidad mine in Sinaloa. SilverCrest announced executive appointments (Las Chispas project, Sonora). Oroco provided an update on its option to acquire an additional interest in its Santo Tomas project in Sinaloa. Prize provided an update about an order on regulatory matters issued by the Alberta Securities Commission (Manto Negro project, Coahuila). Newmont and Goldcorp entered into a definitive agreement to create the world´s leading gold company.  Minera Alamos launched new website (Santana project, Sonora).

ON MEXICO ISSUES

  • Napoleon Gomez Urrutia, mining leader and senator of the MORENA party, declared that is ready to go over the mining companies that do not pay enough taxes, pollute the environment and have too ground in mineral concessions. The mining leader is reviewing mineral concessions and said that mining companies should contribute to the government with more revenues. He also said that the Mining Law of Mexico has to be regulated in accordance with the interests of the country. “We are looking at the cancellation terms for a concession and its extension, because 50, 100 years is too long,” he explained. The senator also mentioned not to have in mind any particular tax for companies.

ON EXPLORATION

  • San Marco Resources Inc., released phase 1 drilling results from its Chunibas project in Sonora, where, under a JV option agreement with a subsidiary of Antofagasta plc., the company is exploring several Cu-Ag rich mineralized targets mapped on surface. Drilling carried out at Chunibas project consisted of 1,640m in 7 shallow drill holes and tested 2km of the NW-SE striking mineralized corridor with 5 drill holes, and 400m of a NE-SW section perpendicular to the  corridor with 2 drill holes. The drilling program has confirmed the existence of a typical Cu-Ag manto-type system. Highlights include hole CHD18-05 with 7.5m of 0.1% Cu and 2 g/t Ag and 22m of 0.05% Cu and 0.7 g/t Ag; hole CHD18-06 with 3m of 0.08% Cu and 0.6 g/t Ag; and hole CHD18-07 with 6m of 0.06% Cu and 0.3 g/t Ag.
  • Silver Viper Minerals Corp., reported second batch drilling results from its la Virginia project in Sonora. Significant results are at El Rubi Zone in hole LV18-201 with 13.3m (6m TW) with 3.16 g/t Au and 228 g/t Ag (6.42 g/t AuEq), including 4m (1.8m TW) of 3.75 g/t Au and 258 g/t Ag (7.43 g/t AuEq), and including 1m (0.45m TW) of 8.30 g/t Au and 782 g/t Ag (19.47 g/t AuEq); hole LV18-200 with 12m (9m TW) of 1.52 g/t Au and 133 g/t Ag (3.42 g/t AuEq), including 2m (1.5m TW) of 5.51 g/t Au and 537 g/t Ag (13.18 g/t AuEq); and hole LV18-203 with 10m (5m TW) of 1.1 g/t Au and 97 g/t Ag (2.48 g/t AuEq), and 12m (6m TW) of 1.37 g/t Au and 81 g/t Ag (2.53 g/t AuEq), including 1m (0. 5m TW) of 13.20 g/t Au and 780 g/t Ag (24.34 g/t AuEq). A third and final batch of results are pending and will be released once the assays are received.
  • Mexus Gold US, announced that the 1st phase of drilling at its Santa Elena project in Sonora has been completed. Final results are expected to arrive in February 2019. Until now, “Hole 7 is the best evidence of high-grade gold at 9.89 g/t Au with an attractive width of 5.3 meters and an overall average of 3.12 g/t Au”.
  • Sonoro Metals Corp., completed 45 RC holes totaling 4,604m at its Cerro Caliche project in Sonora, confirming a luster of eight northwest trending gold-dominant structures surrounded by parallel sheeted veinlets and stockwork veinlets. Significant drill intersections are Highlights from the final 14 holes include 12.19m of 11.2 g/t Au and 5.9 g/t Ag (11.3 g/t AuEq); 4.57m of 4.67 g/t Au and 2 g/t Ag (4.69 g/t AuEq); and 12.19m of 0.82 g/t Au and 8.5 g/t Ag (0.95 g/t AuEq).
  • Ridgestone Mining Inc., released final assay results from an initial drill program conducted at its Rebeico project in Sonora. Significant intersections are in hole 18REB6 with 3.25m of 8.31 g/t Au and 2.41% Cu, including 0.5m of 6.95 g/t Au and 1.31% Cu, and 1m of 17.7 g/t Au and 5.95% Cu, and 1m of 5.59 g/t Au and 0.83% Cu; and hole 18REB10 with 1.5m of 36.1 g/t Au and 1.22 g/t Ag, and 1.46 g/t Au and 0.07% Cu.
  • Mammoth Resources Corp., posted an internal technical report based on 13 holes totaling 2,700m drilled during its 2017-2018 drilling program conducted on its Tenoriba project in Chihuahua. Some of the conclusions are: At El Moreno area, feldspar porphyry intrusive rocks were intersected displaying porphyry –style mineralization including disseminated sulphides and complex stockworks-sulphide rich veinlets. Hole TEN 17-02 intersected 80m of 0.17 g/t AuEq: Phyllic-pyrite alteration was also identified in drill core and consists of illite-tourmaline and dickite; K-feldspar flooding was observed at deeper intervals and the presence of 7.2m of 3.59% Cu in hole TEN 17-03. At the Carneritos area, mineralization identified is more typical of high sulphidation and consists of narrow pyrite rich veinlets in a stockwork texture associated with silica, dickite and local patchy vuggy silica alteration. Hole TEN 17-06 intersected 126.08m of 0.52 g/t AuEq, including 25m of 1.21 g/t AuEq.
  • VVC Exploration Corporation, announced the results for the last 11 drill holes from its Samalayuca project in Chihuahua. The most significant intersections are in hole SC18-056 with 19.65m of 0.32% Cu; hole SC18-057 with 28m of 0.79% Cu; and hole SC18-058 with 5m of 0.55% Cu. “The 2017/18 drilling program confirmed significant, near surface, copper mineralization over an approximate 5km strike length.”
  • Goldplay Exploration Ltd., outlined with soil and rock sampling five new exploration targets at its San Marcial project in Sinaloa. Faisanes, Cabañas, Nava, Pedregal, and Chachalaca targets have been prioritized for follow up exploration and detailed geological mapping in H1, 2019. “The Cabañas and Faisanes targets demonstrate very similar geology to the historic resource, while the Nava and Pedregal targets indicate a NE-SW trending structural setting, superimposed on a volcanic package of rhyolites and andesites cut by dioritic dykes. The Chachalaca trend is interpreted as a NW-SE trending structural setting, with geology dominated by rhyolites and andesites”.

ON MINING

  • Alamos Gold Inc., reported its Q4 and annual 2018 production results from their Mulatos and El Chanate mines in Sonora. Production from Mulatos in Q4 was 35.6K Oz Au for a full year 2018 of 175.5K Oz Au. At El Chanate mine, Alamos produced 35.6K Oz Au in Q4 2018 for an annual 2018 production of 43.7K Oz Au. Alamos Gold expects to produce between 150K-160K Oz Au in 2019. Mining activities ceased at El Chanate mine in Q4 2018 and has transitioned to residual leaching which will result in a declining rate of production through 2019.
  • Alio Gold Inc., announced its Q4 and full year 2018 production results from its San Francisco Mine in Sonora. At its San Francisco mine the company achieved a Q4 production of 10.3K Oz Au for a full year 2018 production of 54K Oz Au. The company reported that “there are sufficient stockpiles to operate at full capacity throughout 2019 (as at July 1, 2018, the low-grade stockpile consisted of approximately 7.2 M tonnes of 0.26 g/t gold material (60.2K contained Oz Au). Gold production at San Francisco mine is expected to remain consistent with current production levels for at least the first half of 2019”.
  • Premier Gold Mines Limited, reported its Q4 and full year 2018 production results from its Mercedes mine in Sonora. In Q4, the company produced 22.5K Oz Au and 119K Oz Ag for an annual 2018 production of 68.7K Oz Au and 309.2K Oz Ag.
  • Coeur Mining Inc., released its Q4 and full 2018 production results from its Palmarejo mine in Chihuahua. In Q4, Coeur milled 378,389 tonnes of 2.49 g/t Au and 185 g/t Ag to produce 31.2K Oz Au and 1.9M Oz Ag with metallurgical recoveries of 97.6% and 84% respectively. For the full year 2018, the company milled 1,382,471 tonnes of 3.1 g/t Au and 202 g/t Ag to produce 122.7K Oz Au and 7.5M Oz Ag with metallurgical recoveries of 88.9% and 83.8% respectively.
  • GoGold Resources Inc, announced its Q4 2018 production results from its Parral operation in Chihuahua. In Q4, GoGold produced 1,828 Oz Au and 168K Oz Ag for a total of 325K Oz AgEq.
  • Mc Ewen Mining Inc., presented its Q4 and annual 2018 production results from its El Gallo mine in Sinaloa. The company produced 5.6K Oz AuEq in Q4 for a total full 2018 production of 39.1K Oz AuEq. By the end of Q2 2018, mining and crushing activities ceased at El Gallo mine and were followed by residual heap leaching. Closure, reclamation, and residual heap leaching activities are ongoing and will continue for several years.
  • Excellon Resources Inc., announced its Q4 and annual 2018 production results from its Platosa mine in Durango. Excellon milled 16,570 tonnes of 556 g/t Ag, 4.9% Pb and 6% Zn in Q4 to produce 274.3M Oz Ag, 1.5M Lb Pb, and 1.8M Lb Zn. In the full 2018 year, Excellon milled 57,475 tonnes of 488 g/t Ag, 4.8% Pb, and 6.9% Zn to produce 917.7M Oz Ag, 5.4M Lb Pb, and 7.9M Lb Zn.
  • Avino Silver & Gold Mines Ltd., presented its Q4 and full year 2018 production results from their Avino, San Gonzalo and Above Ground Stockpiles in Durango. In Q4, the company milled 189,574 consolidated tonnes of 64 g/t Ag, 0.5 g/t Au, 0.44% Cu to produce 288.6K Oz Ag, 1,973 Oz Au, and 1.4M Lb Cu with metallurgical recoveries of 75%, 64% and 72% respectively. For the full 2018 year, Avino milled 708.7K tonnes of 73 g/t Ag, 0.53 g/t Au, and 0.43% Cu to produce 1.3M Oz Ag, 8K Oz Au, and 4.8M Lb Cu with metallurgical recoveries of 76%, 65%, and 72% respectively.
  • Hecla Mining Company, announced its Q4 and annual 2018 production results from its San Sebastian mine in Durango. Hecla produced 443.3K Oz Ag and 2,928 Oz Au in Q4 and 2M Oz Ag and 15K Oz Au in the full 2018 year. The mill operated at an average of 429tpd in 2018.
  • Goldcorp Inc., released its Q4 and annual 2018 production results from their operations. Goldcorp did not report results by mine but produced 630K Oz Au in Q4 and 2.3M Oz Au in the full 2018 year.
  • Fortuna Silver Mines Inc., reported its Q4 and annual 2018 production results from its San Jose mine in Oaxaca. Fortuna milled 256,181 tonnes of 1.58 g/t Au and 230 g/t Ag in Q4 to produce 11.8K Oz Au and 1.7M Oz Ag. In the full 2018 year, Fortuna milled 534,773 tonnes of 1.75 g/t Au and 260 g/t Ag to produce 53.5K Oz Au and 8M Oz Ag.
  • First Majestic Silver Corp., presented its mine by mine Q4 2018 production results from their Mexican operations. The table below shows production details for each mine:

  • Mako Mining Corp., reported that are still in the process of dewatering the Taunus pit at its La Trinidad mine in Sinaloa and has already reached bench -56, where there are over 57M tonnes of blasted rock of 1.35 g/t Au. The company expects to commence mining by month end, at which time crushing and stacking on the leach pad can once again resume. There is an estimated of 30K Oz of recoverable Au left in the Taunus pit. The Company is still evaluating the safest and most effective mine plan to recover the remaining Oz Au.
  • Great Panther Silver Limited, provided 2019 production and cost guidance for their two Mexican operations: Topia in Durango and the Guanajuato mine complex which includes the San Ignacio and the Guanajuato mines. Great Panther expects to produce in 2019 over 3.7-4.0 M AgEq. The company also has taken the step of realigning their Mexican operations to reduce cost and maximize mine operating cash-flow, with a modest reduction in their production ounces.

ON FINANCING

 

  • Impact Silver Corp., closed the second and final tranche of a non-brokered private placement for $1.19M for a total raise of $1.7M. Gross proceeds will be used to explore its Zacualpan project in State of Mexico for additional potential targets, to improve the efficiency at its Guadalupe production mill, and for general working capital purposes.

ON RESOURCES AND DEVELOPMENT

  • Leagold Mining Corporation, announced a feasibility study for the expansion of its Los Filos mine in Guerrero. Highlights of the FS are: production of 3.3M Oz Au over a 10-year mine life (2019-2028) at an average AISC of $795; and proven and probable mineral reserves of 111.3M tonnes of 1.23 g/t Au containing a total of 4.5M Oz Au. Post expansion (2021 onwards) include an average annual production of 350K Oz Au at AISC of $759/Oz and an average annual production exceeding 400K Oz Au from 2012 to 2013.

ON DEALS AND CORPORATE ISSUES

  • Goldplay Exploration Ltd, announced the listing of its shares on the Frankfurt Stock Exchange under the symbol GPE effective January 15, 2019 (San Marcial project, Sinaloa).
  • Mako Mining Corp., completed the acquisition of Golden Reign Resources Ltd., from Marlin Gold Mining Ltd., and now holds a 100% interest in the la Trinidad mine in Sinaloa.
  • SilverCrest Metals Inc., announced the appointment of its VP Exploration and Technical Services and its Executive VP Business Development (Las Chispas project, Sonora).
  • Oroco Resource Corp., engaged an independent QP to prepare a technical report on its Santo Tomas property in Sinaloa. It allows Oroco to acquire an additional interest on the property.
  • Prize Mining Corporation, provided an update about the order issued by the Alberta Securities Commission on December 21, 2019, requiring that all trading in securities of Prize cease and that Prize must cease trading in all securities. Prize applied for a further adjournment and now the Alberta Securities Commission issued a variation order dated January 14, 2019 to adjourn the hearing to February 1, 2019.
  • Newmont Mining Corporation & Goldcorp Inc., entered into a definitive agreement to form Newmont Goldcorp and create the world´s leading gold company. Newmont will acquire all of the outstanding common shares of Goldcorp in a stock-by-stock transaction valued in $10B. “Newmont Goldcorp’s Reserves and Resources will represent the largest in the gold sector and will be located in favorable mining jurisdictions in the Americas, Australia and Ghana, representing approximately 75 percent, 15 percent and 10 percent, respectively”. The Boards of Directors of both companies have unanimously approved the transaction, which is expected to be closed in Q2, 2019.
  • Minera Alamos Inc., launched a new brand and improved website.

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, kaolin in a Hg prospect in San Luis Potosi, Mexico.  Photo by Miguel A Heredia.