The Mining and Exploration News in Mexico: Highlights on the Fourth Week of November, 2020

By Jorge Cirett

During the 48th week of the year (November 23rd to November 29th, 2020), at least 22 press releases were announced by companies working in Mexico. To note, seven companies posted exploration advances on their properties and seven more published on project development. ON MEXICO ISSUES, Mining concessions surface has been reduced by 21% in this federal administration. Camimex delivered its “Cascos de Plata” awards. The COVID pandemic has accelerated the digital transformation in mining. ON EXPLORATION, in Sonora, Silver Viper informed on the status of exploration at its La Virginia project; Tarachi Gold released high-grade results from drilling at La Dura, on its Tarachi project. In Chihuahua, Reyna Silver has received drill permits for Guigui. In Sinaloa, GR Silver delineated a new mineralized zone at Plomosas; Brigadier Gold released high-grade results from the first holes at Picachos. Vizsla released assays from the first hole at the Agüita Zarca prospect in Panuco. In Puebla, Almaden Minerals reported on exploration of the SE zone at Ixtaca.  ON MINING, Impact Silver released third quarter financial results. Telson Mining began to send ore from Tahuehueto to a toll mill. ON FINANCING, Candente Gold closed a financing round raising $250 K. Alien Metals raised £2.5 M. ON RESOURCES AND DEVELOPMENT, Great Panther Mining updated the mineral resource estimate at its Guanajuato mine Complex. Minera Alamos has received the last significant permit to start plant construction at La Fortuna in Durango. Prime Mining mobilized the first rig to Los Reyes, Sinaloa. Sonoro Gold released results from 20 more drill holes at Cerro Caliche, Sonora. Premier Gold Mines reported results from delineation drilling at Mercedes, Sonora. Discovery Metals informed on drilling targeting bulk tonnage and high-grade veins at Cordero, Chihuahua. Orla Mining informed on the start of earth-moving activities at Camino Rojo, Zacatecas.  ON DEALS AND CORPORATE ISSUES, Candente gold is changing name to Xali Gold Corporation. Candelaria Mining sold a 0.5% royalty on production from Pinos, Zacatecas. ON SOCIAL RESPONSIBILITY, Peñoles and Fresnillo PLC informed on programs to aid communities near their operations. Newmont informed on a plan to achieve zero-emissions by 2050.

ON MEXICO ISSUES

  • The current federal government reduced by 21% the surface under mining concessions. This as a result of a strict review on the concessions current at the start of the federal administration, and the denial to issue new titles by the president.
  • Camimex (Cámara Minera de México) delivered the “Cascos de Plata” (Silver hard hats) awards to the six mining units with the best safety records in Mexico. The awards went to Agnico Eagle Mexico, Grupo Mexico’s La Caridad, America’s Gold & Silver Cosalá, Velardeña (Peñoles), Grupo Mexico’s Planta ESDE and Grupo Mexico’s Refinería Electrolítica de Zinc.
  • Mining companies state the COVID pandemic has accelerated the digital transformation and advanced automatization.

ON EXPLORATION

  • GR Silver Mining Ltd. Delineated a new mineralized zone, Yecora, from drilling in the San Juan area of its Plomosas project in Sinaloa. Highlighted results comprise 5.5 m @ 264 gpt Ag, 0.4 gpt Au, 0.3% Pb, 0.6% Zn; 19.0 m @ 49 gpt Ag, 1.8 gpt Au, 0.8% Pb, 1.4% Zn; 25.2 m @ 82 gpt Ag, 0.5 gpt Au, 0.9% Pb, 0.5% Zn; 3.2 m @ 27 gpt Ag, 0.3 gpt Au, 3.0% Pb, 11.4% Zn; 7.1 m @ 7.5% Zn, 2.4% Pb, 0.9 gpt Au; 3.3 m @ 11.3% Zn; 0.4 m @ 10.2 gpt Au, 2.1% Zn. “The San Juan Trend now extends for at least 2 km along strike, consisting of at least six mapped veins: San Juan, La Colorada, Yecora, Loma Dorada, La Odisea and San Francisco”.
  • Silver Viper Minerals Corp. informed on exploration at its La Virginia project in Sonora. The property was previously explored by Pan American Silver and Minefinders which sunk 188 drill holes for a total of 52,000 m of diamond drilling. Silver Viper acquired the project in 2018, starting by drilling gaps in the Las Huatas and Convirginia zones, and sunk five holes in a new area, El Rubi, where a new discovery was made in a zone with quartz veins, stockworks and breccias. In 2019 most work was a follow-up on El Rubi, with mapping and rock sampling, with a second drill campaign commencing by the end of that year that now has more than 15,000 m drilled. The company notes that hole LV20-245 (the last released, with 110 m @ 38 gpt Ag, 0.76 gpt Au) drilled 100 m west of El Rubi is a second discovery, showing the potential for open pit mining at the zone.
  • Reyna Silver Corp. has received drill permits for the Guigui project in Chihuahua. “The Guigui Project is located in the heart of the Santa Eulalia Mining District, home to Mexico’s largest Carbonate Replacement Deposit (CRD). The Santa Eulalia Mining District has produced 510 M Oz of silver, 4.2 MT of lead, 3.6 MT of zinc, at average grades of 310 g/t Ag, 8.2% Pb and 7.1% Zn.
  • Brigadier Gold Ltd. released results from the first three diamond holes of a 5,000 m program at its 3,954 hectares Picachos property on the Rosario district in Sinaloa. The 18th hole is being drilled, with the first 14 testing 225 m of strike length on the San Agustin vein and the rest now testing Los Tejones. Highlighted core length intercepts comprise 7 m @ 7.45 gpt Au, 51 gpt Ag (including 1 m @ 45.63 gpt Au); 1 m @ 1.33 gpt Au, 22 gpt Ag; 4.5 m @ 2.89 gpt Au, 50 gpt Ag (including 2 m @ 6.12 gpt Au, 52 gpt Ag); 2 m @ 2.71 gpt Au, 24 gpt Ag. Trench sampling returned 7 m @ 0.39 gpt Au, 53 gpt Ag; 1.5 m @ 7.53 gpt Au, 113 gpt Ag; 1.55 m @ 15.49 gpt Au, 109 gpt Ag (including 0.35 m @ 66.36 gpt Au, 99 gpt Ag); 1 m @ 3.21 gpt Au, 184 gpt Ag; 5 m @ 4.89 gpt Au, 67 gpt Ag.   
  • Tarachi Gold Corp. released results from underground diamond drill holes at La Dura mine on the Jabali concession of the Tarachi project in Sonora. Highlighted core length intercepts comprise 7.0 m @ 2.30 gpt Au; 14.5 m @ 5.49 gpt Au (including 7.0 m @ 9.67 gpt Au); 8.0 m @ 0.31 gpt Au; 20.1 m @ 4.54 gpt Au (including 10.0 m @ 7.48 gpt Au). Mineralization at La Dura is defined by a series of steeply dipping crackle brecciated quartz veins in dacitic volcanic rocks.
  • Vizsla Resources Corp. released results from the first hole drilled at the Agüita Zarca prospect of the Cordon de Oro vein at its Panuco project in Sinaloa. The drill hole intercepted core length intercepts of 18.15 m @ 118 gpt Ag, 3.71 Au (457 gpt AgEq), including 5.95 m @ 244 gpt Ag, 10.49 gpt Au (1,208 gpt AgEq). Directly above this intercept there is a trench channel sampling that returned 0.49 gpt Au, 161 gpt Ag (197 gpt AgEq).
  • Almaden Minerals Ltd. reported results from initial surface sampling of veins discovered in the Southeast Alteration Zone of the Ixtaca project in Puebla. These veins were discovered while mapping a clay alteration zone in volcanic rocks, and although not containing precious metals, show high values of trace elements for shallow epithermal systems.

ON MINING

  • Impact Silver Corp. released third quarter 2020 financial results. Average mill feed was 166 gpt Ag. “Silver production year to date 2020 was only down 4% compared to 2019 at 462,231 ounces despite the COVID-19 official shutdown required by Mexican government from April to June 2020”. Cash at the end of the period was $17.4 M.
  • Telson Mining Corp. has begun to send ore from its Tahuehueto project in Durango to the Atocha toll beneficiation plant. To date 3,000 tonnes have been delivered, of 3,500 tonnes on the current program. Telson informed that it is waiting for the final financing to finish the construction of a 1,000 tonnes per day plant at Tahuehueto.

ON FINANCING

  • Candente Gold Corp. closed the non-brokered private placement previously announced, raising a total of $200 K (El Oro, Estado de México).
  • Alien Metals Ltd. informed on the oversubscription of a financing placement that raised £2.5 M in gross proceeds.

ON RESOURCES AND DEVELOPMENT

  • Great Panther Mining Ltd.  updated the mineral resource estimate at its Guanajuato mine Complex, to July 31, 2020. The complex is comprised by the Guanajuato and San Ignacio underground mines and the 1,000 tpd Cata plant. The estimate includes 19,913 m of drilling in 199 holes since the previous resource calculation. The total resource comprises 821.8 K tonnes @ 199 gpt Ag, 2.07 gpt Au in the measured and indicated category and 1,453 K tonnes @ 185 gpt Ag, 2.25 gpt Au in the inferred category, containing 5.24 M Oz Ag, 54,693 Oz Au and 8.66 M Oz Ag, 105,219 Oz Au respectively. The company is working with permitting authorities to expand the capacity of the tailings storage facility, to extend operations beyond January 2021.
  • Minera Alamos Inc. informed the company has received the approval of the MIA (Manifestación de Impacto Ambiental or Environmental Impact Statement) from SEMARNAT for its La Fortuna project in Durango. The company possesses all the key federal approvals necessary for a 2,000 tonnes per day mine and plant construction.
  • Prime Mining Corp. has mobilized the first of at least two rigs for the incoming 10,000 m drill campaign at its Los Reyes project in Sinaloa. Furthermore, recent trench results were released, including 36 m @ 2.12 gpt Au, 19 gpt Ag; 9.0 m @ 0.43 gpt Au, 16 gpt Ag; 13.5 m @ 0.92 gpt Au, 31 gpt Ag; 33 m @ 1.47 gpt Au, 22 gpt Ag; 25.5 m @ 3.51 gpt Au, 32 gpt Ag; 51 m @ 1.37 gpt Au, 132 gpt Ag. Re-logging of core has found that adularia appears to be vertically zoned, which might aid in targeting high-grade zones.
  • Sonoro Gold Corp. reported results from 20 additional reverse circulation (RC) holes at its Cerro Caliche project in Sonora. Highlighted results comprise 45.72 m @ 0.97 gpt Au, 4 gpt Ag; 6.09 m @ 3.99 gpt Au, 9 gpt Ag; 1.52 m @ 7.80 gpt Au, 15 gpt Ag; 9.14 m @ 0.46 gpt Au, 12 gpt Ag; 10.67 m @ 0.96 gpt Au, 13 gpt Au; 13.72 m @ 0.30 gpt Au; 12.19 m @ 0.94 gpt Au, 3 gpt Ag; 1.52 m @ 2.26 gpt Au, 34 gpt Ag; 27.43 m @ 0.48 gpt Au, 1 gpt Ag; 16.76 m @ 0.33 gpt Au, 6 gpt Ag; 4.57 m @ 0.54 gpt Au, 6 gpt Ag; 9.15 m @ 0.54 gpt Au, 6 gpt Ag; 4.57 m @ 1.03 gpt Au, 6 gpt Ag; 1.52 m @ 2.64 gpt Au, 6 gpt Ag; 13.71 m @ 0.36 gpt Au; 19.81 m @ 0.57 gpt Au, 5 gpt Ag; 6.1 m @ 0.66 gpt Au, 6 gpt Ag; 6.1 m @ 0.46 gpt Au, 7 gpt Ag; 15.24 m @ 0.45 gpt Au, 3 gpt Ag.
  • Premier Gold Mines Ltd. reported on results from its delineation core drilling campaign at its Mercedes mine in Sonora. Highlighted true width results comprise 12.7 m @ 10.17 gpt Au, 294 gpt Ag; 8.1 m @ 7.49 gpt Au, 57 gpt Ag; 2.8 m @ 5.29 gpt Au, 30 gpt Ag at Marianas, 4.2 m @ 10.03 gpt Au, 119 gpt Ag; 2.3 m @ 5.31 gpt Au, 131 gpt Ag at San Martin and 10.2 m @ 7.12 gpt Au, 26 gpt Ag; 56.6 m @ 2.99 gpt Au, 12 gpt Ag (including 12.2 m @ 4.47 gpt Au, 21 gpt Ag); 14.2 m @ 4.86 gpt Au, 31 gpt Ag; 13.2 m @ 6.83 gpt Au, 27 gpt Ag at Diluvio stockwork zone. Marianas is the down plunge of the main Mercedes mine trend, composed of three main veins: Main, West and East. The San Martin vein was discovered by drilling in 2019, and Diluvio West consists of a vein stockwork system with a broad envelope.
  • Discovery Metals Corp. informed it has now completed 43,640 m of drilling in 111 holes as part of its expanded 55,000 m program at Cordero, Chihuahua. The focus has been on bulk tonnage targets and high-grade veins. Bulk tonnage targeting shifted from the North Corridor to the South Corridor, where broad zones of mineralization have been intercepted. On high-grade veins, the Todos Santos vein trend has been extended to 1.5 km, and the Porcinera vein to 350 m, both with high-grade intercepts.
  • Orla Mining Ltd. announced the start of earth moving activities at its Camino Rojo Oxide project in Zacatecas. “All permit conditions have been satisfied, including placing of an environmental bond, for site activities to begin. Major contracts for earth moving and civil works have been awarded and detailed engineering is 90% complete. Current activities include mobilization of the earthworks contractor, installation of the construction camp and offices, flora and fauna rescue, as well as site fence erection”.

ON DEALS AND CORPORATE ISSUES

  • Candente Gold Corp. announced the decision to change name to Xali Gold Corp.
  • Candelaria Mining Corp. sold a 0.5% NSR on production from the Pinos project, in Zacatecas, to Empress Royalty Corp. for US$750 K. Empress also purchased an additional 0.5% NSR from a previous royalty holder. The Pinos project is subject to NSR royalties of 2.0%.

ON SOCIAL RESPONSIBILITY

  • Industrias Peñoles is working along with the Teloloapan municipality museum, aiding with an augmented reality presentation in 3D of mining and metallurgic processes, that can be accessed in smart phones and tablets.
  • Fresnillo PLC reforested 7 hectares in Caborca and the surrounding communities during the last four years.
  • Newmont plans to reduce emission of CO2 by 30% and then achieve the zero-emissions target by 2050.

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: Sulfide rich mantos in core from Cerro San Pedro, San Luis Potosí. Picture by Jorge Cirett.

The Mining and Exploration News in Mexico: Highlights on the Third Week of November, 2020.

Barite crystals

By Miguel A Heredia

During the forty eight week of the year (November 16th to November 22th, 2020), at least 29 press releases were announced by companies working in Mexico and 1 news published by the media, with eight reporting on resources and development of their mine operations, six disclosing deals and corporate issues, six informing on exploration results, four commenting on Mexican issues, three  communicating production and financial results, two announcing financial rounds, and one discussing social issues.  ON MEXICO ISSUES, Equinox announced that the community blockade at its Los Filos mine in Guerrero has been lifted and access to the mine has been restored. First Majestic announced its intention to appeal the Circuit Court decision to nullify the Advance Pricing Agreement concluded in 2012 between Primero Empresa Minera and the Mexican tax authority, Servicio de Administracion Tributaria (SAT). Deputies of the mining commission of the State Congress and the State Secretariat of Economy of Sonora will join forces to request to the Federal Government that the Mining Fund returns to the Municipalities of the State.   Great Panther has temporarily suspended the operations at its Topia mine in Durango due to the detection of COVID-19 among the workforce.  ON EXPLORATION, In Sonora, Canuc started a drone supported, high frequency, magnetic survey over its newly acquired claims at its San Javier project, Silver Tiger reported drill results from its El Tigre project, Colibri released results from the trenching sampling carried out at its Evelyn project, and Riverside and its JV partner Carlyle reported channel sampling results from its Cecilia project. In Jalisco, GoGold released drilling results from El favor target at its los Ricos North project. In the State of Mexico, Impact has commenced a trenching sampling at its Manto America gold target.  ON MINING, Excellon reported Q3, 2020 production and financial results from its Platosa mine in Durango.  Santacruz reported October 2020 production results from its Zimapan and Rosario mines in Hidalgo and San Luis Potosi respectively. Starcore reported Q2, 2020/2021 production results from its San Martin mine in Queretaro.  ON FINANCING, Magna Gold closed the acquisition of the Margarita Silver project in Chihuahua. Telson executed a Trust Agreement with Trafigura Mexico (Tahuehueto project, Durango).  ON RESOURCES AND DEVELOPMENT, Azucar resumed drilling at its El Cobre property in Veracruz.  Endeavour expanded its land position at its Terronera property in Jalisco. Elemental Royalties presented Q3, 2020 results from its Mercedes mine in Sonora. Mexus provided an update on its new heap leach pad at its Santa Elena mine in Sonora. Golden Minerals received the final environmental permit for its Rodeo property in Durango. Minera Alamos announced an independent NI 43-101 compliant mineral resource estimate of 630K Oz Au at its Cerro de Oro project in Zacatecas. Sierra Metals announced a significant increase of its mineral resource estimate at its Cusi mine in Chihuahua. SilverCrest announced new high-grade discovery at the Babi Vista Splay Vein within its Las Chispas project in Sonora. ON DEALS AND CORPORATE ISSUES, Aura announced a new and improved offtake agreement with Trafigura starting in 2022 (Aranzazu property, Zacatecas). Barksdale appointed its company Senior VP Project Development (San Javier project, Sonora).  Comet changed its provider for shareholder registry services from Advanced Share Registry Services to Automic Pty Ltd (Santa Teresa property, Baja California).  SilverCrest announced the appointment of a new member for its Board of Directors (Las Chispas project, Sonora). Starcore presented results from its annual general meeting of shareholders (San Martin mine, Queretaro).  Silver Dollar announced it has hired a Country Manager for its la Joya Silver project in Durango.   ON SOCIAL RESPONSIBILITY, Torex achieved 10M hours work without a lost time injury (El Limon-Guajes mine complex, Guerrero).

ON MEXICO ISSUES

  • Equinox Gold Corp., announced that the community blockade at its Los Filos mine in Guerrero has been lifted and access to the mine has been restored. Los Filos has commenced a staged restart and workers will resume their duties only after testing negative for COVID-19.
  • First Majestic Silver Corp., announced its intention to appeal the Circuit Court decision to nullify the Advance Pricing Agreement concluded in 2012 between Primero Empresa Minera SA de CV (PEM) and the Mexican tax authority, Servicio de Administracion Tributaria (SAT).   “The Federal Court’s decision directs SAT to re-examine the evidence and basis for the issuance of the APA with retroactive effect, for the following key reasons: (i) SAT’s errors in analyzing PEM’s request for the APA and the evidence provided in support of the request; and (ii) SAT’s failure to request from PEM certain additional information before issuing the APA. The Company’s legal advisors having now reviewed the written reasons continue to be of the view that the Federal Court’s decision is flawed both due to procedural irregularities and failure to address the relevant evidence and legal authorities. The Company intends to appeal the decision to the Circuit Courts by the December 1, 2020 deadline”.
  • Deputies of the mining commission of the State Congress and the State Secretariat of Economy will join forces to request to the Federal Government that the Mining Fund returns to the Municipalities of the Sonora State. The commission reported that the Federal Government has pending the contribution of MXP $1,500M corresponding to fiscal year 2019 to be exercised in fiscal year 2020 in works of high social impact in municipalities with mining activities. One of the deputies stated that the resources of the Mining Fund originated in the State of Sonora, must remain here, because it is a resource of Sonora and must be applied, definitely, to the needs of the State. Sonora ranks first in the country in the extraction of copper, gold, molybdenum, wollastonite, and graphite and second in silver, substances that are exploited by national and foreign companies with investments around the world.
  • Great Panther Mining Limited has temporarily suspended the operations at its Topia mine in Durango due to the detection of COVID-19 among the workforce.   A reduced workforce will remain on site to maintain essential activities for the duration of the voluntary suspension. The health and safety of employees, contractors, and host communities remains a priority.  The company will continue working closely with the local government and regional health authorities to ensure a safe restart of normal operations.

ON EXPLORATION

  • Canuc Resources Corporation, started a drone supported, high frequency, magnetic survey over the 800m in length and 80 m in width silver-bearing magnetite swarms that have been identified within, and proximal to the large silver-bearing breccia structures uncovered in July and August of this year and first reported in a press release dated September 22nd.   
  • Silver Tiger Metals Inc., reported drill results from its El Tigre project in Sonora, where the company is currently exploring with core drilling the Caleigh and Protectora Veins. The company has drilled ten holes and highlights include hole 163 on Protectora Vein with 1,782 g/t Ag and 3.56 g/t Au (2,049 g/t AgEq) over 0.5m, and a second intercept of 1,374 g/t Ag and 0.89 g/t Au (1,441 g/t AgEq) over 0.5m; hole 164 on Protectora Vein with 805 g/t Ag and 10.5 g/t Au (1,593 g/t AgEq) over 0.5m; hole 158 on Caleigh Vein with 815 g/t Ag and 4.09 g/t Au (1,122 g/t AgEq) over 0.7m; and hole 156 on Caleigh Vein with 752 g/t Ag and 7.09 g/t Au (1,284 g/t AgEq) over 0.3m.
  • Colibri Resource Corporation, released results from the trenching sampling carried out at its Evelyn project in Sonora.  Fifty six chip samples from 0.30 to 2.00m in length were taken from trenches at The Cerro Rojo, El Sahuaro, and the West Evelyn targets. Nine samples returned values greater than 1 g/t Au and a total of 16 samples returned values greater than 0.1 g/t Au, with a peak of 23.2 g/t Au at the Cerro Rojo target area. The trenching has defined a northwest-southeast mineralized trend over an approximate strike length of 35 metres with samples ranging from 0.304 g/t Au to 27.5 g/t Au.
  • Riverside Resources Inc and its JV partner Carlyle Commodities Corp., reported channel sampling results from its Cecilia project. Thirty six channel samples were collected from underground working as well as at surface over the San Jose target from brecciated and silicified rhyolite. Over 43% of the samples returned more than 0.2 g/t Au with a peak of 48.3 g/t Au over a width of 0.75m. Other significant results were 0.86 g/t Au over 1.7m; 0.78 g/t Au over  0.85m; 0.66 g/t Au over 1.6m; 0.66 g/t Au over 0.8m; and 0.56 g/t Au over 1.25m.
  • GoGold Resources Inc., released drilling results from El Favor target at its los Ricos North project in Jalisco. Significant drill intercepts were encountered in hole LRGF-20-005 with 0.11 g/t Au and 74 g/t Ag (1.10 g/t AuEq or 83 g/t AgEq) over 21m, including 0.23 g/t Au and 150 g/t Ag (2.23 g/t AuEq or 167 g/t AgEq) over 9.0m; hole LRGF-20-006 with 2 intercepts, one of 0.2 g/t Au and 96 g/t Ag (1.48 g/t AuEq or 111 g/t AgEq) over 12m, including 0.53 g/t Au and 271 g/t Ag (4.15 g/t AuEq or 311 g/t AgEq) over  3.4m, and 0.97 g/t Au and 113 g/t Ag (2.47 g/t AuEq or 186 g/t AgEq) over 27m, including 3.35 g/t Au and 350 g/t Ag (8.01 g/t AuEq or 601 g/t AgEq); hole LRGF-20-007 with 0.28 g/t Au and 160 g/t Ag (2.4 g/t AuEq or 180 g/t AgEq) over 11m, including 0.53 g/t Au and 291 g/t Ag (4.41 g/t AuEq or 331 g/t AgEq) over 3.5m; hole LRGF-20-008 with 0.69 g/t Au and 255 g/t Ag (4.08 g/t AuEq or 306 g/t AgEq) over 52.1m, including 0.93 g/t Au and 343 g/t Ag (5.51 g/t AuEq or 413 g/t AgEq) over 37.1m, including 5.62 g/t Au and 2,052 g/t Ag (32.98 g/t AuEq or 2,473 g/t AgEq) over 5m, including 8.47 g/t Au and 3,039 g/t Ag (49 g/t AuEq or 3,675 g/t AgEq) over 3.3m; and hole LRGF-20-009 with 2 intercepts, one of 0.43 g/t Au and 148 g/t Ag (2.41 g/t AuEq or 180 g/t AgEq) over 11.6m, including 1.22 g/t Au and 324 g/t Ag (5.55 g/t AuEq or 416 g/t AgEq) over 2.5m, and 0.32 g/t Au and 63 g/t Ag (1.15 g/t AuEq and 87 g/t AgEq) over 32.5m, including 0.64 g/t Au and 171 g/t Ag (2.93 g/t AuEq or 220 g/t AgEq) over 7m. The drilling program at El Favor target has tested 1,000m along strike of the historic El Favor vein and workings. These first nine drill holes have confirmed the wide zones of mineralization mapped and sampled on surface continue down dip for close to 600m. The company stated that the mineralization is open along strike in both directions and down dip and will aggressively advance this zone towards a mineral resource estimate.
  • Impact Silver Corp., has commenced a trenching sampling at its Manto America gold target in the State of Mexico. Thirty three rock chip samples returning more than 2 g/t Au have been collected on this target, with a peak of 19.5 g/t Au over a true width of 1.2m. Additionally, 67 soil samples taken on a 50m by 25m grid have returned an average of 250 ppb Au. The 900m trenching sampling plans to test an area of 450m by 300m over the strongest Au-in soil anomalies. Previous operators of this target excavated two trenches, the same that were sampled by Impact, returning 0.51 g/t Au over 5.6m in width  and  a length of 23.5m, and 0.3 g/t Au over 5.5m in width and a length of 17.2m.

ON MINING

  • Excellon Resources Inc., reported Q3 2020 production and financial results from its Platosa mine in Durango. The company mined 21,877 tonnes and processed 22,612 tonnes of 483 g/t Ag, 5.3% Pb, and 6.8% Zn, with metallurgical recoveries of 93%, 85% and 80.9% respectively. Excellon produced 326.9K Oz Ag, 2.23M Lb Pb, and 2.75M Lb Zn (or 524.3K Oz AgEq), and sold 310.3K Oz Ag, 2.18M Lb Pb, and 2.28M Lb Zn (or 485.8K Oz AgEq) at  a cash and AISC of USD $12.60 and USD $18.92 respectively per Oz Ag sold. The company reported revenues of USD $9.7M, gross profit of USD $2.5M, net working capital of USD $10.5M, and cash and marketable securities of USD $10.1M as at September 30, 2020.
  •  Santacruz Silver Mining Ltd., reported October 2020 production results from its Zimapan and Rosario mines in Hidalgo and San Luis Potosi respectively. At Zimapan mine in  Hidalgo, the company milled 62,543 tonnes of 81 g/t Ag, 0.8% Pb, 2.6% Zn, and 0.32% Cu to produce 114K Oz Ag, 983.3K Lb Pb, 2.45M Lb Zn, and 315.3K Lb Cu (or 363.7K Oz AgEq). At Rosario mine in San Luis Potosi, Santacruz milled 6,319 tonnes of 85 g/t Ag, 0.2 g/t Au, 0.4% Pb, and 1.5% Zn to produce 15.1K Oz Ag, 26 Oz Au, 52.9K Lb Pb, and 169.7K Lb Zn. 
  • Starcore International Mines Ltd., reported Q2, 2020/2021 production results from its San Martin mine in Queretaro. Starcore milled 56,731 tonnes of 1.6 g/t Au and 22 g/t Ag with metallurgical recoveries of 88.5% and 56.99% respectively to produce 2,867 Oz AuEq.

ON FINANCING

  • Magna Gold Corp., closed the acquisition of the Margarita Silver project in Chihuahua from Sable Resources Ltd and Exploraciones Sable S de RL de CV. Magna acquired the property by paying CAD $1.5M in cash plus an additional CAD $800K in cash representing Mexican VAT, and CAD $3.5M in common shares in the capital of Magna, being 3,219,278 Magna shares at a deemed price of CAD $1.0872 per Magna Share. Immediately following the acquisition, the Purchaser exercised the option to acquire the property by payment to the titleholders of the property of CAD $500K in cash, plus an additional $368K in cash representing Mexican VAT; and CAD $1.8M in Magna Shares, being 1,655,629 Magna Shares at the Issue Price. In addition, Magna will pay Osisko Gold Royalties Ltd  a 2% NSR on all products mined and produced from the Property.
  • Telson Mining Corporation executed a Trust Agreement with Trafigura Mexico. Under the terms, Trafigura waived all defaults plus deferred all principal and interest payments until June30, 2021, under certain terms and conditions, related to certain loan agreements entered into between the parties in late 2017.  Additionally, Telson agreed to place its assets into the Trust to guarantee full repayment of all outstanding financial obligations under the loan agreements with Trafigura. Telson has advanced its Tahuehueto construction plans and currently calculates a construction budget at approximately USD $13M, including a 15% contingency. Telson is contemplating to enter into a USD $12M medium term loan facility with Accendo Banco S.A. Institucion de Banca Multiple,  the possibility of a small silver stream metal purchase funding or conducting a private placement financing to supplement the Accendo loan for Tahuehueto construction, and to provide working capital.

ON RESOURCES AND DEVELOPMENT

  • Azucar Minerals Ltd., resumed drilling at its El Cobre property in Veracruz. The company is  first deepening hole EC-20-108, which is located at the Primo Zone, in an effort to further delineate resource potential at the project beyond that contained in the initial Norte Zone mineral resource estimate. The Primo Target was discovered in 2019 based on the hole EC-19-086 which intersected 0.4 g/t Au and 0.24% Cu over 200m, including 0.94 g/t Au and 0.56% Cu over 55.6m.
  • Endeavour Silver Corp., expanded its land position at its Terronera property in Jalisco to 20,128 hectares by acquiring two adjacent groups of mineral concessions called La Sanguijuela and Cerro Gordo. La Sanguijuela, which covers the possible NW extension of the Terronera Vein and the possible west extension of the Los Reyes Vein, comprises 2,759 hectares and Endeavour has an option to purchase it by USD $550K in a four years staged payments. The Los Cuates Vein is the main structure at la Sanguijuela and has been traced for over a length of 1.5km with thickness of 2 to 6m with values of 0.5 – 5 g/t Au and 50-300 g/t Ag. Cerro Gordo, which covers the possible southeast extension of four Terronera footwall veins (Pena Gorda-Canoas, Los Venados-La Carbonera, Pena Blanca-El Alacran and El Mirador-Los Tablones) as well as three other veins (El Maguey-El Madrono, Monte Obscuro-Musgos and La Muda-Monte Grande), was acquired by staking 2,200 hectares. The El Maguey-El Madrono vein has been observed over a length of 1.6 km with a thickness of 2 to 4 m, carrying values of 0.6 to 2 g/t Au and 10-30 g/t Ag.  The Pena Gorda-Canoas vein outcrops over a length of 1.7 km with a thickness of 2 to 5 m, returning values up to 0.5 g/t Au and 40 g/t Ag. Vein systems in these two properties have never been drilled and Endeavour plans to test some portion during Q4, 2020.
  • Elemental Royalties Corp., presented Q3, 2020 results from its Mercedes mine in Sonora. The company announced that Mercedes mine was placed on care and maintenance following a decree from the Mexican Federal Government on March 30. 2020 in which listed mining operations as non-essential industry, and restarted activities on July, 2020 following a two-month suspension. Mining activities were focused with a reduce staff on higher grades and are concentrated on the Diluvio-Lupita-San Martin system while also implementing continued exploration, underground development and mill maintenance programs with the intention of returning to full production in due course.
  • Mexus Gold US provided an update on its new heap leach pad at its Santa Elena mine in Sonora. It has completed phase 1 of its new 250K tonnes pad which is expandable to 1M tonnes, and will have crush mineralized material averaging 2.7 g/t Au. Mexus is looking for a return of 0.6 g/t Au in solution. In addition, Mexus is scheduled to begin blasthole drilling to expand its open pit 2 by approximately 1,741 Oz Au at a grade of 2.7 g/t Au.
  • Golden Minerals Company received the final environmental permit for its Rodeo gold-silver property in Durango, which is scheduled to begin gold production in January 2021, delivering mineralized material at its Velardeña mill to process it immediately.   “The Velardeña plant is a typical agitated leach plant rated to handle up to 450 tonnes per day of throughput from Rodeo. It is equipped with a Merrill Crowe circuit and a modern doré refinery, and the attached tailings facility was recently expanded and is expected to be sufficient for the tailings produced from Rodeo’s operations”.
  • Minera Alamos Inc., announced an independent NI43-101 compliant inferred mineral resource estimate of 630K Oz Au at its Cerro de Oro project in Zacatecas. The inferred mineral resource was prepared using an economic pit shell at a gold price of USD $1,450 per Oz and contains 630K Oz of oxide gold mineralization from 48M tonnes of 0.41 g/t Au.  Minera Alamos has also identified a number of high priority targets with potential to expand resources at Cerro de Oro, as well as a limited number of diamond drill holes which have demonstrated the potential for sulphide mineralization to extend to depth below the current estimate area.
  • Sierra Metals Inc., announced a significant increase of its mineral resource estimate at its Cusi mine in Chihuahua. The company increased 18% the measured and indicated resources from 4,557,000 tonnes to 5,356,000 tonnes, and 200% the inferred resources from 1,633,000 tonnes to 4,893,000 tonnes. The updated mineral resource estimate include measured + indicated resources of  5,356,000 tonnes of 182 g/t Ag, 0.12 g/t Au, 0.5% Pb, and 0.6% Zn (215 g/t AgEq) for a total of 31.26M Oz Ag, 20.22K Oz Au, 58.26M Lb Pb, and 67.99M Lb Zn (37M Oz AgEq), and Inferred resources of 4,893,000 tonnes of 146 g/t Ag, 0.18 g/t Au, 0.43% Pb, and 0.69% Zn (183 g/t AgEq) for a total of 23M Oz Ag, 27.7K Oz Au, 46M Lb Pb, and 74.81M Lb Zn (28.82M Oz AgEq).
  • SilverCrest Metals Inc., announced new high-grade discovery at the Babi Vista Splay Vein within its Las Chispas project in Sonora as a result of an in-fill drilling program at the northwestern extension of the Babi Vista Vein. Twenty four holes have been collared at this target with a high grade footprint of approximately 300m along strike and average height of 175m. Weighted average results are 74.27 g/t Au and 3,437 g/t Ag (9,071 g/t AgEq) over a true width of 1.6m. The most significant drill intercept was encountered in hole BV20-201 with 555.36 g/t Au and 19,453 g/t Ag (61,105 g/t AgEq) over a true width of 2.4m. This discovery at Babi Vista Splay Vein will be included as inferred resources for the upcoming resource estimation in the ongoing PFS study.

ON DEALS AND CORPORATE ISSUES

  • Aura Minerals Inc., announced a new and improved offtake agreement with Trafigura Mexico S.A. de C.V., starting in 2022. The new agreement, in which Trafigura has agreed to purchase 100% of the copper and gold concentrate produced at Aranzazu mine in Zacatecas,  is effective as of the beginning of 2022 and continues until the end of 2024.
  • Barksdale Resources Corp., appointed its company Senior VP of project Development. Its role will be overseeing the advancement of the Company’s project portfolio, including the San Javier copper-gold project in Sonora, Mexico. In connection with this appointment, Barksdale has granted a stock option to purchase 250K common shares, exercisable at $0.68 per share over a three-year period. 
  • Comet Resources Limited, changed its provider for shareholder registry services from Advanced Share Registry Services to Automic Pty Ltd (Santa Teresa property, Baja California).
  • SilverCrest Metals Inc., announced the appointment of a new member for its board of directors (Las Chispas project, Sonora).
  • Starcore International Mines Ltd., presented results from its annual general meeting of shareholders (San Martin mine, Queretaro).  
  • Silver Dollar Resources Inc., announced it has hired a Country Manager to work alongside the company at its la Joya Silver project in Durango.

ON SOCIAL RESPONSIBILITY

  • Torex Gold Resources Inc., achieved 10M hours work without a lost time injury (El Limon-Guajes mine complex, Guerrero).

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, barite crystals from a low-intermediate sulphidation epithermal system in a prospect in Chihuahua, Mexico.  Photo by Miguel A Heredia.

The Mining and Exploration News in Mexico: Highlights on the Second Week of November, 2020

By Jorge Cirett

During the 46th week of the year (November 9th to November 15th, 2020), at least 23 press releases were announced by companies working in Mexico. To note, five companies posted exploration advances on their projects and six more posted on project development. ON MEXICO ISSUES, Canadian mining investment increased during the COVID pandemic; a webinar about lithium in Mexico was held; the illegal blockade on Equinox’s Los Filos mine in Guerrero ended and the Discoveries Conference was held in Guadalajara, the first in-person gathering of the mining community since the pandemic began. ON EXPLORATION, in Sonora, Colibri released trench results from Evelyn; Tarachi Gold is mobilizing a portable diamond drill to the San Javier concession on its Tarachi property. In Sinaloa, Vizsla released assays from drilling at Panuco; Kootenay released drill results from Copalito. In Zacatecas, Advance Gold completed an IP survey.  ON MINING, Sierra Metals, Equinox and Americas Gold and Silver released third quarter 2020 results. Americas Gold and Silver updated on the Cosalá Complex situation in Sinaloa. ON FINANCING, Silver Bull and Candente Gold raised US$150 K and $200 K respectively. Aura Minerals made some clarifications on its latest public offering. Reyna Silver is now trading in USA and Germany. ON RESOURCES AND DEVELOPMENT, Mexican Gold released high grade drill results from its resource expansion program at Las Minas, Veracruz. Endeavour Silver released high-grade intercepts on Guanaceví, Durango. Discovery Metals released interesting results from drilling at its Cordero project in Chihuahua. GoGold informed on additional drill results from Los Ricos North project in Jalisco. Southern Silver Exploration informed on drill results from its Cerro Las Minitas project in Durango, some of which are high-grade. SilverCrest Metals updated on development activities at its Las Chispas project in Sonora.  ON DEALS AND CORPORATE ISSUES, Magna Gold optioned the Margarita project from Sable Resources (a property brought to Sable’s attention by Gambusino Prospector). VanGold Mining amended its option agreement to re-purchase three of four underlying royalties at its El Pinguico project in Guanajuato. ON SOCIAL RESPONSIBILITY. Fresnillo PLC promotes the creation of micro and small businesses in the Caborca region in Sonora.

ON MEXICO ISSUES

  • The COVID-19 pandemic saw investments by Canadian miners increase in Mexico, from US$30 M to US$160 – US$170 M a month during last September, according to Douglas Coleman, CEO of Mexico Mining Center. The increase in precious metal prices brought also an average increase of 30% on the valuation of companies in the Bolsa Mexicana de Valores (BMV) during the first 10 months of the current year.
  • The illegal blockade by the Carrizalillo community on Equinox’s Los Filos mine in Guerrero has been lifted, according to Jorge Zuriel de los Santos, head of the Fiscalía General del Estado de Guerrero (State Prosecutor).
  • The webinar “The truth about lithium in Mexico” was held on November 11, 2020, sponsored by Mundo Minero, the Colegio de Ingenieros de Minas, Metalurgistas y Geólogos de México (CIMMGM) and the Asociación de Ingenieros Mineros, Metalurgistas y Geólogos de México (AIMMGM).

ON EXPLORATION

  • Colibri Resource Corp. released assay results from the trenching program at its Evelyn project in Sonora. Highlighted results include 0.40 m @ 4.01 gpt Au on a quartz vein with oxidized pyrite, sericite and iron carbonate; 1.5 m @ 2.44 gpt Au in an andesite with quartz veining with oxidized pyrite and iron carbonate; Colibri has been granted a permit to complete up to 2.2 Km of trenching, and has collected 77 rock samples so far in these 1.5 m to 2.5 m deep trenches.
  • Vizsla Resources Corp. provided assay results from drilling on the Papayo and San Carlos prospects at its Panuco project in Sinaloa. “Drilling has continued to expand the known extents of mineralization at Papayo” with highlighted true width (TW) results comprising: 0.74 m @  7.96 gpt Au, 1,515 gpt Ag, 0.50% Pb, 1.21% Zn; 1.29 m @ 0.61 gpt Au, 125 gpt Ag; 0.78 m @ 2.66 gpt Au, 474 gpt Ag, 1.04% Pb, 2.80% Zn; 0.95 m @ 21.60 gpt Au, 216 gpt Ag, 1.91% Pb, 6.02% Zn; 1.49 m @ 1.0 gpt Au, 207 gpt Ag, 0.56% Pb, 1.32% Zn; 1.37 m @ 1.31 gpt Au, 168 gpt Ag; 5.61 m @ 1.05 gpt Au, 89 gpt Ag, 0.74% Pb, 1.9% Zn. “The San Carlos structure is wide lower grade bulk tonnage target with an average width of 11.5m and a range from 3.35m to 22.8m” with highlighted TW intercepts comprising 15.62 m @ 0.91 gpt Au, 110 gpt Ag (including 4.78 m @ 2.19 gpt Au, 230 gpt Ag); 19.20 m @ 0.30 gpt Au, 53 gpt Ag; 17.18 m @ 0.45 gpt Au, 67 gpt Ag (including 4.59 m @ 0.97 gpt Au, 147 gpt Ag); 22.76 m @ 0.26 gpt Au, 43 gpt Ag.
  • Advance Gold Corp. completed an induced polarization (IP) survey on its Tabasqueña project in Zacatecas. The new IP survey highlights two wide and closely spaced high chargeability anomalies, with the strongest being on the western part of the new grid. “For both targets, the associated chargeability anomaly is deeply seated (> 250 to 300m) while their origin is linked to two distinct wide mineralized systems. The western anomaly appears to remain open laterally to the north and south within the property limits”.
  • Tarachi Gold Corp. is mobilizing a man portable diamond drill rig to commence drill testing the high-grade gold bearing structures on the San Javier concession, part of its Tarachi project in Sonora. The drill program will focus on a NW trending shear structure where previous drill holes intercepted 5.0 m @ 34.5 gpt Au and 3.0 m @ 24.3 gpt Au. Mineralization is hosted in andesitic volcanic rocks, flanked by an intrusive rock, and the shear zone at San Javier remains open along strike and to depth, with the possibility of an extension under cover.
  • Kootenay Silver Inc. released results from the last seven holes on its 4,153 m drilling program at Copalito, in Sinaloa.  Highlighted intercepts comprise 9.05 m @ 2.09 gpt au, 124 gpt Ag, 0.8% Pb+Zn (including 2.25 m @ 6.65 gpt Au, 335 gpt Ag, 2.6% Pb+Zn, including 0.51 m @ 16.95 gpt Au, 369 gpt Ag, 3.74% Pb+Zn); 27.4 m @ 60 gpt Ag, 0.28 gpt Au, 0.4% Pb+Zn; 10 m @ 128 gpt Ag, 0.65 gpt Au, 1.13% Pb+Zn (including 2.25 m @ 484 gpt Ag, 2.18 gpt Au, 2.86% Pb+Zn).

ON MINING

  • Sierra Metals Inc. Released consolidated third quarter results for 2020, with some figures from its Mexican operations. The Bolivar Mine in Chihuahua processed 410.5 K tonnes in the quarter, a record representing a 24% increase over Q3 2019, at 4,691 tpd, and in track to reach the targeted 5,000 tpd during Q4 2020. The Cusi mine, also in Chihuahua, produced a record 304 K Oz Ag, with an ore throughput of 1,074 tpd.
  • Equinox gold Corp. reported its third quarter 2020 financial and operating results, without detailing figures from its Mexican operations. At Los Filos, the Guadalupe open pit and Bermejal underground proceeded for July and August, but were suspended by an illegal blockade by the community on September 3rd. “Optimization study for new carbon-in-leach plant, heap leach expansion, updated mine planning and a Mineral Reserve and Mineral Resource update targeted for completion in early 2021”.
  • Americas Gold and Silver Corp. reported financial and operational results for the third quarter 2020, including an update on its Mexican operations. At Cosalá, in Sinaloa “In August 2020, the Company announced that the illegal blockade had been resolved to permit some Company personnel the opportunity to re‐enter the mine operations.    This access has not been maintained.  With the re‐opening of Mexican government offices in August, the Company’s employees were expected to vote in September 2020 for new union representation and did so on September 17.  In advance of the vote, a number of irregularities came to light, which indicated that there could not be a fully democratic vote with freedom of association. As a result, the Company does not believe there are conditions currently present to invest the required capital to re‐start the Cosalá Operations.  The Company continues to work with all legitimate stakeholders and remains hopeful that a resolution, consistent with the rule of law and featuring an election free from threats and intimidation, can be achieved so that operations can re‐commence in the near term”. The company also finalized the option agreement with Hochschild to acquire 100% of the San Felipe project in Sonora.

ON FINANCING

  • Aura Minerals Corp. made some clarifications regarding the secondary public offering of Brazilian depositary receipts issued by Itaú Unibanco S.A. as depositary. “The total gross proceeds of the Secondary Offering to the Selling Shareholders are R$87,300,000.00, of which an aggregate of R$19,400,000 is in respect of the Shares offered, severally, by the ARC Funds and R$67,900,000 is in respect of the Shares offered by Ruffer. The Company will not receive any proceeds from the Secondary Offering” (Aranzazú, Zacatecas).
  • Silver Bull Resources Inc. completed the second and final tranche of the previously announced private placement, for gross proceeds of US$150 K, and aggregate gross proceeds of US$1.7 M (Sierra Mojada, Coahuila).
  • Reyna Silver Corp. announced its common shares have been approved for listing on the OTCQB Market Exchange in the United States and the Frankfurt Stock Exchange in Germany.
  • Candente Gold Corp. advised that the previously announced non-brokered private placement has been fully subscribed, for gross profits of $200K (El Oro, Estado de Mexico).

ON RESOURCES AND DEVELOPMENT

  • Mexican Gold Mining Corp.  released further assay results from the 2020 drilling program at its Las Minas project in Veracruz. Most of the 52 holes drilled so far have been targeting potential extensions to the El dorado resource, which remains open in several directions. Highlighted true width (TW) intercepts comprise 4.6 m @ 1.41 gpt Au, 0.55% Cu; 15.3 m @ 1.21 gpt Au, 1.1% Cu; 3.2 m @ 3.74 gpt Au, 3.76% Cu; 8.5 m @ 4.86 gpt Au, 1.17% Cu; 17 m @ 1.2 gpt Au, 0.85% Cu; 11.6 m @ 1.56 gpt Au, 1.03% Cu; 11.6 m @ 4.38 gpt Au, 1.84% Cu; 28.5 m @ 2.8 gpt Au, 1.12% Cu; 8.0 m @ 1.9 gpt Au, 0.36% Cu; 7.4 m @ 3.46 gpt Au, 5.08% Cu; 5.3 m @ 0.4 gpt Au, 0.83% Cu.
  • Endeavour Silver Corp. continues to intersect high-grade mineralization in the Santa Cruz vein on the El Curso property of the Guanaceví mine in Durango. Highlighted TW intersections on eleven holes comprise 3.2 m @ 2,307 gpt Ag, 3.15 gpt Au (2,559 gpt AgEq); 3.1 m @ 1,409 gpt Ag, 3.13 gpt Au (1,659 gpt AgEq) and 11.5 m @ 381 gpt Ag, 0.5 gpt Au.
  • Discovery Metals Corp. released results from seven diamond drill holes targeting bulk-tonnage mineralization in the South Corridor at its Cordero project in Chihuahua. Some of the highlighted results comprise 71.2 m @ 18 gpt Ag, 0.06 gpt Au, 0.2% Pb, 0.7% Zn; 139.1 m @ 47 gpt Ag, 0.07 gpt Au, 0.6% Pb, 1.6% Zn (138 gpt AgEq); 26.6 m @ 56 gpt Ag, 0.09 gpt Au, 0.4% Pb, 0.7% Zn; 19.4 m @ 41 gpt Ag, 0.06 gpt Au, 0.5% Pb, 1.2% Zn; 29.6 m @ 52 gpt Ag, 0.07 gpt Au, 0.8% Pb, 0.8% Zn; 92.1 m @ 27 gpt Ag, 0.05 gpt Au, 0.2% Pb, 0.4% Zn; 32.4 m@ 72 gpt Ag, 0.07 gpt Au, 0.3% Pb, 0.1% Zn; 38.4 m @ 36 gpt Ag, 0.04 gpt Au, 0.6% Pb, 0.7% Zn; 33.9 m @ 30 gpt Ag, 0.07 gpt Au, 0.5% Pb, 0.7% Zn; 62.2 m @ 38 gpt Ag, 0.07 gpt Au, 0.4% Pb, 0.7% Zn; 57.1 m @ 18 gpt Ag, 0.01 gpt Au, 0.2% Pb, 1.0% Zn. Assays from 27 holes are pending and four rigs are operating at the site.
  • GoGold Resources Inc. released additional drill results from the La Trini deposit at its Los Ricos North project in Jalisco. Highlighted core length intercepts comprise 25.9 m @ 0.34 gpt Au, 52 gpt Ag (including 4.7 m @ 0.81 gpt Au, 124 gpt Ag); 2.4 m @ 0.05 gpt Au, 300 gpt Ag; 18.7 m @ 0.58 gpt Au 46 gpt Ag; 18.2 m @ 0.11 gpt Au, 48 gpt Ag; 15.2 m @ 0.71 gpt Au, 71 gpt Ag (including 2.0 m @ 3.55 gpt Au, 284 gpt Ag and 1.3 m @ 4.20 gpt Au, 733 gpt Ag).
  • Southern Silver Exploration Corp. reported initial assay results from the recently started 10,000 m core drilling program at Cerro Las Minitas, Durango. Highlighted true width results from holes in the South Skarn target comprise 4.0 m @ 109 gpt Ag, 0.14 gpt Au, 0.02% Cu, 1.8% Pb, 2.1% Zn (including 0.9 m @ 412 gpt Ag, 0.14 gpt Au, 0.06% Cu, 7.8% Pb, 9.2% Zn); 0.8 m @ 132 gpt Ag, 0.12 gpt Au, 0.02% Cu, 2.8% Pb, 2.0% Zn; 1.1 m @ 54 gpt Ag, 2.83 gpt Au, 0.01% Cu, 3.6% Pb, 0.4% Zn; 3.2 m @ 99 gpt Ag, 0.27 gpt Au, 0.01% Cu, 0.7% Pb, 0.6% Zn; 6.7 m @ 625 gpt Ag, 0.11 gpt Au, 0.03% Cu, 11.8% Pb, 7.5% Zn; 1.2 m @ 112 gpt Ag, 0.07 gpt Au, 2.2% Pb, 2.1% Zn.
  • SilverCrest Metals Inc. provided an update on activities for 2020. During the first nine months of the year the company has drilled 146,000 m of in-fill and expansion drilling at Las Chispas project in Sonora. Furthermore, 4.1 km of underground decline and lateral drifting, stockpiling an accumulated 47 K tonnes @ 1,130 gpt AgEq (7.21 gpt Au, 590 gpt Ag). “Las Chispas site activities continued with the building of the administration and warehouse facilities, phase 1 of the temporary quarantined COVID-19 camp, communication system, and water pumping stations”. Since inception of the project, 461,000 m have been drilled in 1,712 holes. As October 31, 2020, SilverCrest has cash and cash equivalents of $184 M (US$138.2 M).

ON DEALS AND CORPORATE ISSUES

  • Magna Gold Corp. entered into a definitive option acquisition agreement with Sable Resources Ltd. To acquire Sable’s option to acquire 100% interest in the 125.6 ha Margarita silver property in Chihuahua; the property lies 15 Km northwest on strike with the recently commissioned Sunshine Silver Corp’s Los Gatos mine. Magna is to acquire the option by paying CAD$1.5 M cash, plus additional CAD$800 K VAT and CAD$3.5 M in common shares of Magna. The purchaser will exercise the option to acquire the property by payment of CAD$500 K in cash, plus $368 K in VAT to the titleholders of the concessions and CAD$1.8 M in Magna shares. Sable drilled 35 holes for a total of 5,245 m, with intercepts like: 4.25 m @ 430 gpt Ag, 0.2% Pb, 0.7% Zn; 12.4 m @ 446 gpt Ag, 0.7% Pb, 1.0% Zn; 14.05 m @ 306 gpt Ag, 0.7% Pb, 1.9% Zn; 11.3 m @ 229 gpt Ag, 1.0% Pb, 0.3% Zn; 33.3 m @ 283 gpt Ag, 0.3% Pb, 0.8% Zn (including 9.9 m @ 579 gpt Ag, 0.8% Pb, 1.7% Zn); 20.6 m @ 83 gpt Ag, 0.1% Pb, 0.3% Zn (including 5.1 m @ 198 gpt Ag, 0.2% Pb, 0.3% Zn); 48.65 m @ 102 gpt Ag, 0.1% Pb, 0.4% Zn; 37.35 m @ 117 gpt Ag, 0.17 gpt Au, 0.2% Pb, 0.7% Zn (including 5.5 m @ 400 gpt Ag, 1.07 gpt Au, 1.1% Pb, 0.4% Zn).
  • VanGold Mining Corp. amended its option agreement to re-purchase three of the four underlying royalties on its Pinguico project, Guanajuato. Under the new terms the option is exercisable by making payments to EMBSA (Exploraciones Mineras del Bajío, S.A. de C.V.) of $200 K cash and 3.75 M shares before November 20, 2020; $325 K in cash before February 22, 2021; $525 K in cash before February 22, 2022 and $625 K in cash before February 22, 2023. After these payments are made, the only NSR on the property will cover the above ground and below ground stockpiles. 

ON SOCIAL RESPONSIBILITY

  • Fresnillo PLC promotes the creation of micro and small businesses by means of its “Emprende en Línea” (Online Entrepreneurship) program, to develop administrative and managerial capabilities to consolidate businesses. For more than two decades Minera Penmont has contributed to the growth of the Caborca region through the implementation of social programs.

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: Base metal veinlet in core from Cerro San Pedro, San Luis Potosí. Picture by Jorge Cirett.

The Mining and Exploration News in Mexico: Highlights on the First Week of October, 2020

By Jorge Cirett

During the 40th week of the year (September 28th to October 4th, 2020), at least 40 press releases were announced by companies working in Mexico. To note, five companies posted exploration advances on their projects, ten companies posted news related to financing or share structure, and seven on their projects development. ON MEXICO ISSUES, the Mining Fund is gone. A new special force was created to aid protect mining companies from criminal gangs activities. Only nine percent of Mexico is under a current mining concession. The CTM asks for the continuation of the Mining Fund. Some 150 junior exploration companies have left Mexico. The Mining-Metallurgic production index grew by 6.2% in July. Sixteen municipalities in Hidalgo are to receive $48 M pesos from the Mining Fund. ON EXPLORATION, in Sonora, Colibri Resources completed a mag survey on Evelyn. Tocvan Ventures identified a pipe like structure at its Pilar project. In Sinaloa, Brigadier Gold commenced drilling at Picachos. In Durango, Mithril Resources released drilling results from Copalquin. In Oaxaca, Megastar Development team is back in the field at Yautepec and Magdalena.  ON MINING, No relevant news. ON FINANCING, One World Lithium ($1.5 M), Plymouth Realty Capital ($10 M), Barksdale ($6.325 M), Santacruz Silver (CDN$9.5 M), Prismo Metals ($575 K), Endeavour Silver (US$60 M) released news regarding financing rounds. Candelaria Mining settled a $1.087 M debt with shares. Silver One granted options to its directors, officers, employees and consultants. Silver Dollar started trading at the OTCQB. ON RESOURCES AND DEVELOPMENT, GR Silver released underground channel sampling results. Consolidated Zinc presented the latest resource estimate at its Plomosas mine in Chihuahua, and announced the refurbishment of the processing plant at the site. Capitan Mining commenced resource expansion drilling at El Capitan, Durango. Azucar Minerals presented the initial resource estimate for the El Norte Zone of its El Cobre project in Veracruz. GoGold Resources released drilling results from its Los Ricos North project in Jalisco. Bacanora Minerals is focusing in engineering while the financing package is complete for its Sonora Lithium project. Golden Minerals released final results of its resource definition drilling program at the Rodeo project, Durango. ON DEALS AND CORPORATE ISSUES, Candente Gold signed the definitive agreement on the acquisition of the San Dieguito de Arriba plant in Nayarit. Silver One is selling its Mexican properties to Plymouth Realty Capital. Dyna Resources is trying to enforce in USA a favorable Mexican court ruling. Silver Spruce has recurred to force majeure clause for lack of access to its Pino de Plata property in Chihuahua. Reyna Silver entered into an option agreement to acquire the Reyna project in Chihuahua. ON SOCIAL RESPONSIBILITY. Fresnillo PLC, Minera Autlan, Minera Saucito and Industrias Peñoles informed on sustainability, health, safety, environment, social and governance programs.

ON MEXICO ISSUES

  • The Mining Fund is gone for good from the purpose it was created for: aiding the development of mining communities. Mining States and municipalities wonder what the destiny of more than $1,500 M pesos actually in the Fund. The actual federal government re-directed the use of the Mining Fund, with 85% going to the Education Secretariat, 5% to the Economy Secretary and 10% to federal government infrastructure programs.
  • A new special force for overseeing mining operations was formed by the federal government. The first 118 guards graduated from a special training course, and will be equipped with assault weapons. Heists by organized crime have plagued the industry in the last few years, with robberies of bullion in mining operations across several states.
  • The Economy Secretariat informed mining concessions cover only 9% of Mexico. Graciela Marquez, Secretary of Economy noted that 24 thousand current mining concessions cover 17 M hectares. The Director de Minas (reporting to Gabriela Marquez) pointed that they are following the president view of not granting more mining concessions, which is problem that will catch up in 10 years’ time with fewer new deposits to mine due to the lack of exploration.
  • The Confederacion de Trabajadores de Mexico (one of the largest union organizations in Mexico, best known as “CTM”) asked the federal government and the Deputies Chamber for the no disappearance of the Mining Fund.
  • Fernando Alanís Ortega from Camimex pointed out some 150 junior exploration companies have left Mexico due to the complex operative environment. Several companies have diversified their operations this year, with acquisitions in Canada and USA. The last company to divest its Mexican portfolio is Silver One, to focus on a project in Nevada.
  • The Mexican index of Mining-Metallurgic production increased by 6.2% in July, compared with the same month of 2019 and by 5.1% from July 2020 to the previous month.
  • Sixteen Municipalities in Hidalgo are to receive $48 M pesos from the Fund for Development of Mining Production Zones.  

ON EXPLORATION

  • Brigadier Gold Ltd. commenced its maiden drill program at the 3,954 ha Picachos property in Sinaloa. The drilling of 5,000 m in 40 holes will test the San Agustín mine (underground rock chip sample of 1.2 m @ 73.4 gpt Au), and the the Mochomos (underground rock chip sample of 0.5 m @ 18.5 gpt Au, 570 gpt Ag), Tejones (underground rock chip sample of 1.0 m @ 28.6 gpt Au, 114 gpt Ag) and Fermin (underground rock chip sample of 1.0 m @ 0.3 gpt Au, 268 gpt Ag) veins. “the Cocolmeca Vein system is comprised of several sub-parallel veins over a 1.5 kilometre (km) wide zone ……  San Agustín is the best understood of these veins, mainly because it has been historically exposed underground by approximately 670 line-metres of tunnels, stopes and shafts”.
  • Colibri Resource Corp. received results from a high-resolution magnetic survey at its Evelyin property in Sonora. The interpretation of the magnetic data allowed the identification of three families of lineaments that are to aid in the definition and prioritization of targets.
  • Tocvan Ventures Corp. informed on new interpretations on all the information gathered on its Pilar project in Sonora. With the aid of geophysical, geochemical and structural specialists a conclusion was reached that a sub-vertical pipe-like feature may represent a breccia feeder pipe related to epithermal mineralization. The pipe is close to 100 m in diameter, oval shaped and dipping 70 degrees to the SSW.
  • Mithril Resources Ltd. Released results from nine more holes at La Soledad in the Copalquin project, Durango. Drilling confirmed the bonanza grades of the La Soledad vein and intercepted additional veins at depth and along strike. Highlighted results comprise 3.8 m @ 2.58 gpt Au, 143 gpt Ag; 0.5 m @ 6.78 gpt Au, 10 gpt Ag, an open working for 2.5 m and then 1.5 m @ 6.65 gpt Au, 18 gpt Ag; 2.82 m @ 2.37 gpt Au, 22 gpt Ag; 7.5 m @ 6.74 gpt Au, 158 gpt Ag.
  • Megastar Development Corp. reported its exploration team is back at the Yautepec and Magdalena projects in Oaxaca. So far, they have found “highly prospective ferruginous (iron-rich) carbonate sinters and fault-controlled quartz veining and breccias in discontinuous erosional windows under post-mineral volcanic rocks over areas of several hundreds of meters”. These findings correlate well with the envisaged uppermost levels of an epithermal system, the concept exploration model used at the site.

ON MINING

  • No Relevant News.

ON FINANCING

  • One World Lithium Inc. announced a non-brokered private placement for gross proceeds of up to $1.5 M (Salar del Diablo, Baja California).
  •  Candelaria Mining Corp. closed the previously announced shares for debt transaction in settlement of $1.087 M of indebtedness (Pinos, Zacatecas).
  • Plymouth Realty Capital Corp. will complete a $10 M private placement funding (Peñasco Quemado, Sonora; La Frazada, Nayarit; Pluton, Durango).
  • Silver One Resources Inc. granted 2.575 M stock options to its directors, officers, employees and consultants (Peñasco Quemado, Sonora).
  • Fresnillo PLC. Is extended the expiration time on its tender offer to purchase for cash any and all of its outstanding US$800,000,000 principal amount of 5.5% Notes due 2023, to September 29. 2020 (La Herradura, Sonora).
  • Silver Dollar Resources Inc. started trading on September 30, 2020, in the United States on the OTCQB Venture Market (La Joya, Durango).
  • Barksdale Resources Corp. closed the final tranche of the company’s non-brokered private placement that raised $6.325 M (San Javier, Sonora).
  • Santacruz Silver Mining Ltd. Increased the size of its previously announced non-brokered private placement offering to CDN$9.5 M (Rosario, San Luis Potosi).
  • Prismo Metals Inc. completed its initial public offering (IPO) for gross proceeds of $575 K (Palos Verdes, Sinaloa).
  • Endeavour Silver Corp. entered into a sales agreement with BMO Capital Markets as the lead agent upon which the company can sell a number of common shares than can amount up to US$60 M (El Compas, Zacatecas; Terronera, Jalisco).

ON RESOURCES AND DEVELOPMENT

  • GR Silver Mining Ltd.  announced favorable results from underground channel sampling on the lower level of the Plomosas mine in Sinaloa. Disseminated and massive mineralization is constituted by veins, stockworks and sulfide stringers that include chalcopyrite, sphalerite and galena in a brecciated tuff. Highlighted channel intervals comprise 2.6 m @ 504 gpt Ag, 14.6 gpt Au, 8.9% Pb, 6.6% Zn, 0.3% Cu; 15.7 m @ 90 gpt Ag, 2.5 gpt Au, 0.5% Pb, 1.3% Zn, 0.8% Cu: 5.4 m @ 147 gpt Ag, 10.0 gpt Au, 0.6% Pb, 3.3% Zn, 1.2% Cu; 7.8 m @ 50 gpt Ag, 2.9 gpt Au, 2.2% Pb, 7.3% Zn, 0.2% Cu; 6.0 m @ 66 gpt Ag, 6.2 gpt Au, 1.4% Pb, 3.9% Zn, 0.9% Cu.
  • Consolidated Zinc Ltd. presented a mineral resource estimate for the month of April 2020 for its Plomosas mine in Chihuahua. The indicated and inferred mineral resources comprise 964 K tonnes @ 13.2% Zn, 3.5% Pb, 20.6 gpt Ag that contain 127 K tonnes of zinc, 34 K tonnes of lead and 639 K Oz silver. The company is refurbishing the Plomosas beneficiation plant to process the ore at the site, for an estimated cost of US$1.35 M. The plant will start processing 3,000 tonnes per day (tpd), with the possibility of an expansion to 6,000 tpd.
  • Capitan Mining Inc. has commenced drilling at the Capitan project in Durango. The first phase comprises 6,000 m of reverse circulation drilling focused on step-out holes for resource expansion.
  • Azucar Minerals Ltd. completed its initial resource estimate for the Norte zone at El cobre project in Veracruz. “Copper and gold mineralization at the Norte Zone is associated with a multiphase variably potassic-phyllic altered porphyritic diorite intrusive complex that is cut by late mafic and intermediate dykes and post mineral feldspar porphyry. The Norte Zone is approximately 0.6 km x 0.4 km along an E-W strike. Sulphide mineralization, which extends up to 900 metres depth, consists of disseminated and vein-hosted chalcopyrite and trace bornite (Cu mineralization) exposed in surface outcrops and intersected in drill core”. The base case scenario considers indicated resources of 47.2 M tonnes @ 0.49 gpt Au, 0.21% Cu, 1.4 gpt Ag containing 1.17 M Oz AuEq and inferred resources of 26.9 M tonnes @ 0.42 gpt Au, 0.18% Cu, 1.3 gpt Ag, containing 1.35 M Oz AuEq.
  • GoGold Resources Inc. released drilling results from the La Trini deposit on the Los Ricos North project in Jalisco. Some of the highlighted results from 12 holes released comprise 22.5 m @ 1.37 gpt Au, 158 gpt Ag; 22.5 m @ 0.20 gpt Au, 48 gpt Ag; 44.5 m @ 0.84 gpt Au, 63 gpt Ag; 38.4 m @ 0.40 gpt Au, 30 gpt Ag; 29.6 m @ 0.42 gpt Au, 88 gpt Ag; 27 m @ 0.12 gpt Au, 48 gpt Ag; 7.9 m @ 0.86 gpt Au, 64 gpt Ag; 19.5 m @ 0.18 gpt Au, 83 gpt Ag; 21.8 m @ 2.73 gpt Au, 130 gpt Ag (including 5.6 m @ 9.40 gpt Au, 365 gpt Ag).
  • Bacanora Lithium PLC. Informed the company has a strong cash balance of US$44.4 M as of June 30, 2020, and retains a senior debt facility of US$150 M. At the Sonora Lithium project in Sonora, work is focused on finalizing engineering so that construction may commence after the financing package is completed.
  • Golden Minerals Co. released final assays from its resource definition program at the Rodeo project in Durango. Some of the true width (tw) highlighted intercepts comprise 15.8 m @ 2.05 gpt Au, 16 gpt Ag; 15.3 m @ 1.09 gpt Au, 4 gpt Ag; 25.5 m @ 2.49 gpt Au, 6 gpt Ag; 25.8 m @ 1.22 gpt Au, 5 gpt Ag; 15.6 m @ 0.78 gpt Au, 3 gpt Ag; 15.0 m @ 0.74 gpt Au, 3 gpt Ag; 7.7 m @ 0.98 gpt Au, 3 gpt Ag; 34 m @ 1.63 gpt Au, 6 gpt Ag; 49.5 m @ 1.77 gpt Au, 22 gpt Ag; 9.6 m @ 0.97 gpt Au, 2 gpt Ag; 25.8 m @ 3.10 gpt Au, 10 gpt Ag; 24.5 m @ 1.32 gpt Au, 5 gpt Ag; 28.0 m @ 1.96 gpt Au, 8 gpt Ag; 17.5 m @ 1.36 gpt Au, 5 gpt Ag. The resource the company is trying to improve was defined in 2017 at 0.4 M tonnes @ 3.3 gpt Au, 11 gpt Ag, containing 46 K Oz Au, 200 K Oz Ag.

ON DEALS AND CORPORATE ISSUES

  • Candente Gold Corp. signed the definitive agreement with Magellan Acquisition Corp. to earn up to 100% interest in the San Dieguito de Arriba beneficiation plant and the rights on the El Dorado property, both in Nayarit.
  • Silver One Resources Inc. entered into a letter of intent (LOI) with Plymouth Realty Capital Corp. to sell all its Mexican silver properties. In consideration for the properties Plymouth is to pay $1 M in cash and $5 M in shares. Plymouth Realty Capital will also change its name to Silverton Metals Corp. (Peñasco Quemado, Sonora; La Frazada, Nayarit; Pluton, Durango).
  • Dyna Resource Inc. announced the filing on August 28, 2020 in Dallas county, Texas, a petition for recognition of the USD$48 M foreign judgement against Goldgroup Resources Inc. in order to recognize in USA the judgment obtained in Mexico against Goldgroup Resources Inc. (the judgment relates to a legal challenge for the ownership of the San José de Gracia project in Sinaloa).
  • Silver Spruce Resources Inc. has “retained Mexico-based legal counsel to lead the discussions with representatives of the surface landowners of Pino de Plata in order to re-negotiate access rights to the ranch that covers the Pino de Plata project area”. The company’s purchase rights contract is now under a force majeure clause until access rights are granted by surface owners to continue exploration.
  • Reyna Silver Corp. announced the acquisition of the 300 ha La Reyna project in Chihuahua. The property is in the Cusihuiriachi (Cusi) silver district of low sulfidation epithermal mineralization. “La Reyna proper is a nearly north-south trending structure traceable as vein and altered outcrops for 4 km across the property. Two historic (1890s) shafts (La Reyna and Princesa) that extend to 133-150m depths exploited high-grade silver-rich mineralized shoots 2-5 m wide in the late 1800s”. The deal involves US$1.3 M in staged cash payments over four years and a 2.5% NSR. The payment on singing was US$30K that is to be followed by US$45 K in 6 months, US$75 K in 12 months, US$75 K in 18 months, US$120 K in 24 months, US$120 K in 30 months, US$150 K in 36 months and US$685 K in 48 months.

ON SOCIAL RESPONSIBILITY

  • Fortuna Silver Mines (San José mine in Oaxaca) signed an agreement with the Oaxaca Health Secretary and the San José del Progreso Municipality to help the community with the pandemic health emergency.
  • Minera Autlán donated 4,000 tree saplings to the Teziutlan Municipality in Puebla.
  • Minera Saucito informed on actions related to the fight against the pandemic in the Fresnillo Municipality in Zacatecas.
  • Industrias Peñoles celebrated 13 years of the inauguration of the Museum of Metals.
  • Industrias Peñoles informed in measures the company implements to reduce the use of water, and its treatment afterwards.
  • Fresnillo PLC is to distribute 20,000 face masks in Zacatecas city.

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: The mineralized porphyry from Cerro San Pedro, San Luis Potosí. Picture by Jorge Cirett.

The Mining and Exploration News in Mexico: Highlights on the Fourth Week of September, 2020.

 

Rich-hematite quartz vein

 

By Miguel A Heredia

During the thirty nine week of the year (September 21th to September 27th, 2020), at least 24 press releases were announced by companies working in Mexico and 11 news published by the media, with eight discussing social issues,  seven disclosing deals and corporate issues, seven informing on exploration results, six announcing financial rounds, four commenting on Mexican issues, two reporting on resources and development of their mine operations, and one communicating production and financial results.  ON MEXICO ISSUES, According to a report by the Bank of Mexico (Banxico), mining in Mexico suffered strong impacts from the COVID-19 pandemic in the first half of 2020. First Majestic provided an update related to its ongoing TAX dispute with the Mexican TAX authority. Resources from the Mining Fund are being used to build an outdoor fitness park at Guadalupe y Calvo, Chihuahua. Alejandro Armenta, senator for MORENA, presented an initiative to nationalize lithium, arguing that it is a strategic mineral for the country’s energy future. It is worrying for the mining sector that voices like this are heard and have weight in making decisions about something extremely delicate without considering the participation of technicians, operators, scientists, businessmen, academics dedicated to mining in Mexico. ON EXPLORATION, In Sonora, Canuc released preliminary exploration results from its San Javier project, Carlyle and its JV partner Riverside reported high grade results from the Cecilia project, Minaurum presented results from the first 4 holes collared in the Europa-Guadalupe vein zone at its Alamos Silver project, and Ridgestone announced drill results from 8 holes collared at its Rebeico project. In Chihuahua, Mammoth provided an update on exploration activities at its Tenoriba project.  In Jalisco, GoGold released the first drilling results from the Salomon-Favor target on its Los Ricos North project.  ON MINING, Hecla reported estimated production results from its San Sebastian mine in Durango for the period January-September, 2020.  ON FINANCING, Advance Gold granted stock options to its directors, key employees, and consultants (Tabasquena project, Zacatecas). Aloro cancelled its previously announced non-brokered private placement (Los Venados project, Sonora).  Comet gave a cleansing notice under section 708A of the corporations acts 2001 (Santa Teresa project, Baja California). Defiance repaid in full the company´s outstanding loan with Windermere Capital Fund SPC (San Acacio project, Zacatecas). Newmont entered into a definitive agreement with Maverix Metals to sell eleven royalties for a total consideration of $90M. Santacruz announced a CAD $6M non-brokered private placement with a lead order from Palisades Goldcorp Ltd., for CADS $3M (Zimapan mine, Hidalgo).   ON RESOURCES AND DEVELOPMENT, Southern Silver will commence a 10,000m drilling program in 20-25 holes which will focus on the development of mineral resources on the east side of its Cerro Las Minitas project, Durango. Xtierra announced its intention to conduct a small drill campaign of five holes for a total of 1,500m at its Bilbao project in Zacatecas.    ON DEALS AND CORPORATE ISSUES, Barksdale signed a definitive agreement to acquire San Javier project in Sonora. Excellon announced that its common shares will commence trading on the NYSE American LCC (La Platosa mine, Durango).  First Majestic announced that it has filed an early warning report for the acquisition of common shares of Silver Dollar (La Joya project, Durango). Global Li-Ion entered into a letter agreement with Grupo Minera Diflor to acquire a 100% interest in the MVZ Au-Ag property in Chihuahua. Reyna Silver appointed new chairman and announced additional changes to the board of directors (Guigui and Batopilas projects, Chihuahua). Silver Tiger announced that it will commence to trade on the OTCQX Best Market under the ticker symbol “SLVTF” (El Tigre project, Sonora).  ON SOCIAL RESPONSIBILITY, Autlan supported communities affected by heavy rains in Hidalgo. La Cantera Desarrollos Mineros, a subsidiary of Peñoles, signed a constitutive act for healthy work returned to its Capela mine located in Guerrero. Fresnillo plc launched its “take care of yourself” campaign that fights against COVID-19 pandemic. Minera Penmont, a subsidiary of Fresnillo plc celebrated 23 years of making history in Caborca, Sonora (La Herradura and Noche Buena mines), ​​with a team of more than 4 thousand people committed to cutting-edge and responsible mining. Dr. Vagón, the ambulating clinic of Grupo Mexico Foundation celebrates six years of operation providing totally free medical services throughout the Mexican Republic. Mina La Colorada, a subsidiary of Pan American Silver, received for the first time the Inclusive Company Distinction (DEI), which accredits it as a company of good labor practices. Fresnillo plc, through Minera San Julian, donated 10 thousand masks to the inhabitants of Parral, Chihuahua. Pan American Silver Mexico carried out a campaign for the use of face masks and delivery of antibacterial kit.

ON MEXICO ISSUES

  • According to a report by the Bank of Mexico (Banxico), mining in Mexico suffered strong impacts from the COVID-19 pandemic in the first half of 2020. All regions had to suspend activities during April and May, since at the beginning practically the entire sector was declared a non-essential activity during the health emergency.
  • First Majestic Silver Corp., provided an update related to its ongoing TAX dispute with the Mexican TAX authority (SAT). The company was informed by its Mexican legal advisors that the Primero Empresa Minera (PEM) transaction will be served with a decision made on September 23, 2020 by the Federal Court on Administrative Matters, nullifying the advance pricing agreement (APA) granted to PEM and directing the TAX authority to re-examine the evidence and basis for the issuance of the APA. The Federal Court decision is appealable to the Circuit Courts. The company´s legal advisers are of the view that the Federal Court´s decision was not arrived following regular procedures, was undertaken hastily, and did not provide opportunity for the presentation of evidence from PEM. The Company continues to assess all of its legal options, both domestic and international.
  • Resources from the Mining Fund are being used to built an outdoor fitness park at Guadalupe y Calvo, Chihuahua, with the goal of generating spaces for healthy recreation to help to maintain a good physical condition of the community population.
  • Alejandro Armenta, senator for MORENA, presented an initiative to nationalize lithium, arguing that it is a strategic mineral for the country’s energy future. Alberto López Santoyo, Director of Mundo Minero stated that it is worrying for the mining sector that voices like this are heard and have weight in making decisions about something extremely delicate without considering the participation of technicians, operators, scientists, businessmen, academics dedicated to mining in Mexico. “The great technical-political errors in the history of Mexico have definitely been those that make an economic activity less competitive. If the government has the intention of producing lithium is fine, but that it participates in the battle field as one more company, like any other protagonist of this new productive context. Let’s not take away competitiveness from mining companies and thousands of capable Mexicans with legitimate intentions to participate in this challenge in a responsible and technically viable manner. Freedom to produce, freedom to compete”.

ON EXPLORATION

  • Canuc Resources Corporation presented preliminary exploration results from its San Javier project in Sonora. The company has conducted reconnaissance geological mapping and rock sampling on the eastern and northeast part of the property and has identified swarms of Fe-matrix hydrothermal breccias over a large area of 900m by 1,200m. One of these individual breccias measures from 30m to 70m in width and has been traced for over at least 800m along strike. This breccia is controlled by two fault structures. To date, 267 rock samples have been collected but assay results are only available for the first 157 samples. Values range from trace to 2,859 g/t Ag and from 74 ppm to 0.59% Cu, with 35 samples exceeding > 100 g/t Ag. Additional work is planned to continue the mapping and sampling on unmapped ground along these breccia zones.
  • Carlyle Commodities Corp., and its JV partner Riverside Resources Inc., announced high grade results from the Cecilia project in Sonora. Riverside is acting as the JV operator and has focused on channel sampling at the San Jose and North Breccia targets. First results from 21 rock samples returned high grades including 43.2 g/t Au over 0.4m wide, 5.6 g/t Au over 0.6m wide, and 2.5 g/t Au over 0.1m wide. In addition, Riverside is also working on drilling preparation, including construction of drill pads and improvement of foot/trail roads, conducting a drone aeromagnetic survey, carrying out a detailed mapping and sampling of the main dome target at Cerro Magallanes, and conducting an IP survey to define the depth of potential conductors interpreted to be sulphide zones.
  • Minaurum Gold Inc., presented drill results from the first 4 holes collared in the Europa-Guadalupe vein zone at its Alamos Silver project. Significant drill intercepts were encountered in hole AL20-042 with 404 g/t Ag, 0.54% Cu, 1.3% Pb, 1.8% Zn over 3.50m, including 999 g/t Ag, 1.29% Cu, 3% Pb, 3% Zn over 1.55m, and hole AL20-047 with 356 g/t Ag, 0.39% Cu, 0.4% Pb, 0.6% Zn over 6.35m, including 2,090 g/t Ag, 1.98% Cu, 2.5% Pb, 2.4% Zn over 0.7m. Drilling will continue to test down-dip as well as along strike of vein intersections at Europa- Guadalupe at 75-150 m increments.
  • Ridgestone Mining Inc., announced results from 8 holes totalling 1,238m collared at its Rebeico project in Sonora. Significant drill intersects were encountered in hole 20REB018D with 0.54% Cu over 29.15m, including 1.95% Cu over 2.25m; hole 20REB022D with 2.62 g/t Au and 0.54% Cu over 0.65m; and hole 20REB023D with 3.82 g/t Au and 0.75% Cu over 4.35m, including 8.61 g/t Au and 0.5% Cu over 1.55m. “Drilling results continues to extend the lateral footprint of mineralization. These latest results definitely warrant follow up and we will commence a strategic targeting exercise for follow-up drilling”.
  • Mammoth Resources Corp., provided an update on exploration activities at its Tenoriba project in Chihuahua. It also received a notification from Minera Centerra, its JV partner on Tenoriba project, about its decision to cease exploration activities in Mexico, including at Tenoriba, however Centerra expressed their enthusiasm for drilling the Tenoriba project. Over the last 6 months, Mammoth-Centerra geologists have been reinterpreting the geophysical surveys, carrying out extensive surface lithological and structural mapping and sampling, and conducting drill core mapping and sampling, including Terraspec alteration clay analysis. In mid-August Centerra filed an application for permission to drill up to 139 drill locations at Tenoriba and a response/approval of this permit application is expected within weeks. Two drill contractors were preparing bids on the Centerra drill program.
  • Xtierra Inc., announced its intention to conduct a small drill campaign of five holes for a total of 1,500m at its Bilbao project. The first target area is located adjacent to and west of the main Bilbao Silver-Lead-Zinc deposit, while the second target is called El Cabezon, a former Ag mine operated by the Frisco Industrial Group.
  • GoGold Resources Inc., released the first drilling results from the Salomon-Favor target on its Los Ricos North project. Highlights include hole LRGS-20-001 with 0.24 g/t Au and 280 g/t Ag (3.98 g/t AuEq or 298 g/t AgEq) over 14m, including 0.51 g/t Au and 699 g/t Ag (9.82 g/t Au and 737 g/t AgEq) over 5m; hole LRGF-20-001 with 0.36 g/t Au and 142 g/t Ag (2.25 g/t AuEq and 168 g/t AgEq) over 41.7m, including 1.12 g/t Au and 444 g/t Ag (7.05 g/t AuEq or 529 g/t AgEq) over 11m; and LRGF-20-004 with 0.24 g/t Au and 74 g/t Ag (1.24 g/t AuEq or 93 g/t AgEq) over 41.1m, including 1.45 g/t Au and 419 g/t Ag (7.04 g/t AuEq or 528 g/t AgEq) over 4.1m. The drilling program will continue to test the known zones of mineralization along strike and down dip from the historical underground workings of the La Trini deposits located 5km northwest.

ON MINING

  • Hecla Mining Company reported preliminary production results for the period January-September, 2020 from its San Sebastian mine in Durango. Hecla produced 6K Oz Au and 0.8M Oz Ag

ON FINANCING

  • Advance Gold Corp., granted stock options to its directors, key employees, and consultants to purchase up to 2Mshares over a five year term (Tabasquena project, Zacatecas).
  • Aloro Mining Corp., reported that due the COVID-19 pandemic, it cancelled its previously announced non-brokered private placement (Los Venados project, Sonora).
  • Comet Resources Ltd., gave a cleansing notice under section 708A of the corporations acts 2001. The company issued a total of 11.5M fully paid ordinary shares and 65M options, as per the proposed 3B forms lodged on 25 August 2020 and 21 April 2020. (Santa Teresa project, Baja California).
  • Defiance Silver Corp., repaid the total outstanding balance of $1,312,018 to Windermere Capital Fund SPC including accrued interest. (San Acacio project, Zacatecas).
  • Newmont Corporation entered into a definitive agreement with Maverix Metals Inc., to sell eleven royalties for a total consideration of $90M, consisting of $15M in cash, 12M Maverix common shares, and up to $15M in contingent cash payments payable upon completion of certain milestones. The royalties provide exposure to five flagship gold assets owned and operated by growth-oriented mining companies. The portfolio includes royalties on Camino Rojo and Ana Paula in Mexico, Cerro Blanco in Guatemala, and Mother Lode and Imperial in the United States.
  • Santacruz Silver Mining ltd., announced a CAD $6M non-brokered private placement with a lead order from Palisades Goldcorp Ltd., for CADS $3M. The proceeds from the private placement are expected to be used by the company to purchase underground equipment for its Zimapan property in Hidalgo and for general working capital and corporate purposes.

ON RESOURCES AND DEVELOPMENT

  • Southern Silver Exploration Corp., will commence a 10,000m drilling program in 20-25 holes which will focus on the development of mineral resources on the east side of its Cerro Las Minitas project, Durango through step-out drilling from previously identified high-grade, strongly silver-enriched mineralization in the Mina La Bocona and South Skarn target areas. Some meterage will also be used to further extend mineralization at the Las Victorias target.
  • Xtierra Inc., announced its intention to conduct a small drill campaign of five holes for a total of 1,500m at its Bilbao project. The first target area is located adjacent to and west of the main Bilbao Silver-Lead-Zinc deposit, while the second target is called El Cabezon, a former Ag mine operated by the Frisco Industrial Group.

ON DEALS AND CORPORATE ISSUES

  • Barksdale Resources Corp., signed a definitive option agreement with Tusk Exploration Ltd., to acquire the San Javier del Cobre project in Sonora.
  • Excellon Resources Inc., announced that its common shares will commence trading on the NYSE American LCC under the ticker symbol “EXN” (La Platosa mine, Durango).
  • First Majestic Silver Corp., announced that it has filed an early warning report for the acquisition of common shares of Silver Dollar. First Majestic has acquired ownership and control of 5,146,401 shares, representing approximately 14.9% of the outstanding shares (La Joya project, Durango).
  • Global Li-Ion Graphite Corp., entered into a letter agreement with Grupo Minera Diflor S.A.de C.V., to acquire a 100% interest in the MVZ Ag-Au property in Chihuahua. The 1,200 hectare property hosts 3 past producing Ag-Au deposits: El Moro, La Virginia and La Zorra (MVZ Property). The Property is situated within Grupo Minero Diflor’s Pajarito project which covers an area of 10 X 25 km.
  • Reyna Silver Corp., appointed new chairman and announced additional changes to the board of directors (Guigui and Batopilas projects, Chihuahua).
  • Silver Tiger Metals Inc., announced that it will commence to trade on the OTCQX Best Market under the ticker symbol “SLVTF” (El Tigre project, Sonora).

ON SOCIAL RESPONSIBILITY

  • Compañía Minera Autlan S.A. B de C.V., supported more than 6,100 people from Tepehuacan de Guerrero and 705 people from Molango affected by the heavy rains in Hidalgo which caused landslides and floods in these entities. To date, communication between the communities has been completely reestablished and significant progress has been made in cleaning up the material that was carried by the rain (Molango mine, Hidalgo).
  • La Cantera Desarrollos Mineros, a subsidiary of Peñoles, signed a constitutive act for healthy work returned to its Capela mine located in Guerrero. The new work normality is accompanied by activities and sanitary measures in order to reduce the risks of COVID-19.
  • Fresnillo plc launched in Fresnillo, Zacatecas, its “take care of yourself” campaign that fights against COVID-19 pandemic. The company delivered 150,000 face masks on the streets of the downtown area.
  • Minera Penmont, a subsidiary of Fresnillo plc, celebrated 23 years of making history in Caborca, Sonora (La Herradura and Noche Buena mines) ​​with a team of more than 4 thousand people committed to cutting-edge and responsible mining. Since its arrival in 1997, it has meant an economic, social and environmental watershed for the state and, particularly for the region and its surroundings.
  • Vagón, the ambulating clinic of Grupo Mexico Foundation celebrates six years of operation providing totally free medical services throughout the Mexican Republic. It offers from general consultations to specialized ones; currently, it has five specialties: Ophthalmology, Dermatology, Pediatrics, Gynecology and Geriatrics. Dr. Vagón, with 17 wagons and 65 people as part of the crew, including administrative and medical personnel, has the capacity to serve 500 people a day.
  • Mina La Colorada, a subsidiary of Pan American Silver Corp., received for the first time the Inclusive Company Distinction (DEI), which accredits it as a company of good labor practices. This award is a recognition given by the Federal Government through the Ministry of Labor and Social Welfare to companies, academic institutions, organizations, federal, state and municipal public agencies that implement and operate inclusive, egalitarian and equitable labor policies for the benefit of workers, without discrimination towards people in vulnerable situations.
  • Fresnillo plc, through Minera San Julian, donated 10 thousand masks to the inhabitants of Parral, Chihuahua. The company considers that these measures are part of the strategy for the health care of the inhabitants, since, together with an information campaign, remind the population of the importance of maintaining sanitary measures in the current situation.
  • Pan American Silver Corp., through Minera Dolores, Chihuahua and Mina La Colorada, Zacatecas carries out a campaign for the use of face masks and delivery of antibacterial kit to reduce the risk of contracting COVO¡ID-19. More than 2,500 kits (antibacterial spray, wet towels, antibacterial gel, face masks) as well as triptychs, were delivered to the elderly, single mothers, vulnerable people, the general population, as well as personnel who work in government offices of the H. Town Hall of the municipalities of Sombrerete and Chalchihuites, Zacatecas; Municipality of Madera, Chihuahua and all the workers of Mina La Colorada and Minera Dolores.

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 rich-hematite quartz vein displaying boiling texture from a low-sulphidation epithermal vein system in a prospect in Sinaloa, Mexico.  Photo by Miguel A Heredia

The Mining and Exploration News in Mexico: Highlights on the First Week of September, 2020

By Jorge Cirett

During the 36th week of the year (August 31st to September 6th, 2020), at least 22 press releases were announced by companies working in Mexico. The dominant news on the country relating to the mining industry during the week, was the cancellation of the Sub Secretary of Mining (created during the last presidential term), headed by Francisco Quiroga, who had gained the trust of the enterprises and organizations of the industry by his relentless and hands-on daily effort to help better the mining industry in Mexico. He will be missed, unlike his predecessor. ON MEXICO ISSUES, the Sub Secretary of Mining was cancelled, its role absorbed within the Economy Secretary; loud complaints from the mining industry organizations followed, to fall on deaf ears. Pending investments in mining for the near future of US$1991 M. The Sonora Mining Fund Committee approved the investment of US$3.5 M on an aqueduct. FIFOMI has US$164 M in current credits to the mining industry. The Mining Fund is gone, for the purposes it was created for. (This is a measure taken by the actual federal government against the opinion of all mining enterprises and organizations. In my personal point of view, it opens the way to the use of the funds in a very centralized manner, same that can be exploited for political gains by those in power. There was just no need for this change). The very Mexican “illegal mine blockade roulette” now struck Equinox’s Los Filos mine in Guerrero. ON EXPLORATION, in Baja, Comet Resources updated on its Santa Teresa property. In Sonora, Redstar Gold updated on its Cumaro project. In Sinaloa, Viszla Resources released drilling results at Panuco. In Veracruz, Azucar Minerals released drilling results from El Cobre.  ON MINING, Santacruz Silver reported second quarter 2020 results. Equinox Gold’s Los Filos mine in Guerrero is affected by an illegal blockade. ON FINANCING, seven companies made announcements regarding the opening or closing of financing rounds: Southern Silver Exploration ($456 K), Barksdale Resources ($6.3 M), GoGold Resources (C$30 M), Silver Dollar Resources ($10.5 M), Inomin Mines ($400 K), Americas Gold and Silver (C$39.4 M), Alien Metals (£1.25 M). Gold79 Mines, Golden Tag Resources and Redstar Gold granted stock options to officers, directors and consultants. ON RESOURCES AND DEVELOPMENT, Silver Bull Resources updated on the legal battle and an illegal blockade at its Sierra Mojada project in Coahuila. ON DEALS AND CORPORATE ISSUES, Odyssey Marine Exploration received funds for the legal battle to obtain the government permit to mine its Exploraciones Oceánicas phosphate project offshore Baja California Sur. Tarachi Gold acquired the Juliana group of properties, increasing the size of its Tarachi property to 3,708 hectares. Inomin Mines executed the agreement on the acquisition of the La Gitana and Peña Blanca properties in Oaxaca. ON SOCIAL RESPONSIBILITY. Peñasquito, First Majestic, Minera San Javier, Alamos Gold and SilverCrest informed on donations, community involvement and safety measures on the areas near their operations.

ON MEXICO ISSUES

  • Francisco Quiroga, in his last day as Sub-Secretary of Mining, called for the AIMMGM (Asociación de Ingenieros Mineros, Metalurgistas y Geólogos de México) to play a leading role in the transformation of the industry and its relationship with the public sector.
  • The AIMMGM installed the newly elected board for the 2020-2022 period.
  • The Secretaría de Economía announced the cancellation of the Mining Sub-Secretary, onward from September 1st, 2020.
  • The cancellation of the Mining Sub-Secretary by the federal government brought loud complaints from companies and organisms within the industry (not that these complaints are to be attended to). The Cámara Minera de México (CAMIMEX), the Asociación de Ingenieros Mineros, Metalurgistas y Geólogos de México (AIMMGM), the Mining Task Force of the Cámara de Comercio del Canadá en México, the Sonora, Chihuahua, Guerrero, Sinaloa and Zacatecas Mining clusters, the Colegio de Ingenieros de Minas, Metalurgistas y Geólogos de México (CIMMGM) and the organization Mujeres en la Minería (WIM Mexico) extended its congratulations to Francisco Quiroga, departing Mining Sub-Secretary and expressed the profound disagreement for the disappearance of the Sub Secretary of Mining.   
  • Camimex (Cámara Minera de México) informed Mexico has a list of projects that add up to $1,991 M dollars in programmed investment. Amongst these are the Campo Morado mine in Guerrero, La Yaqui Grande in Sonora, as well as the Orysivo project in Chihuahua, the Centauro Profundo project in Sonora and the Media Luna project in Guerrero. Mexico had a production peak of 123,364 kg of gold in 2015, same that has declined to 73,451 kg in 2019.
  • The Mining Fund Sonora Committee approved the investment of MX$75 M pesos (US$3.5 M) for the construction of the Macoyahui-Alamos aqueduct. The project includes 24.5 Km of PVC tubing and five pumping stations.
  • INEGI informed the mining activity is resuming after the COVID lockdown. Sulphur, iron,, lead, gold, copper, silver, fluorite are among the commodities that have seen their production significantly increased. In January 2020 the industry generated 381,456 direct jobs and more than 2 M indirect jobs, according to the IMSS.
  • Request for the Mining Sub Secretary to stay in Chihuahua by Omar Bazán, deputy, and the Chihuahua Mining Cluster.
  • The Fideicomiso de Fomento Minero (FIFOMI) has $3,530 M pesos (US$164 M) on current credits to the mining sector.
  • The Mining Fund is gone, for the purposes it was created for. Graciela Márquez, Economy Secretary confirmed the resources no longer are going to be distributed among mining municipalities, but through different agreements with government organisms and federal programs to help mining communities.
  • Graciela Márquez, Economy Secretary, stated the disappearance of the Mining Sub-Secretary is not to affect the mining industry as all relevant structures stay in place (We beg to disagree).

ON EXPLORATION

  • Radius Gold Inc. informed on exploration at its Amalia and Plata Verde projects in Chihuahua. At Amalia, “phase 4 drilling funded by JV partner Pan American Silver remains on stand-by due to COVID-19. Semarnat, the permitting agency in Chihuahua, has returned to work on a limited scale and Pan American has recently provided updated information requested by Semarnat”. At Plata Verde, there is advance in the signing of agreements to expand the property package. “The next phase of field work will consist of geophysical programs to identify feeder systems and expansions of the known mineralization under the thin (>100m) cover volcanics”.
  • Redstar Gold Corp. announced its Cumaro project in Sonora is adjacent to SilverCrest’s Picacho property. “Previous drilling on SilverCrest Metals’ Picacho vein, two kilometres north of the Cumaro property, returned intersections including 13.9 metres at 16.22 grams per tonne (g/t) gold and 33.9 g/t silver in hole PDD07-013, and 4.1 metres at 3.86 g/t gold and 35.0 g/t silver…” in other hole on the Dos Amigos vein. The company believes there is a down-thrown block on the eastern side of the property, where the extensions of the veins exposed on the western side could be present on a much shallower level.
  • Comet Resources Ltd. Informed in a corporate presentation on its Santa Teresa property in Baja California. Santa Teresa is a high-grade mesothermal lode gold deposit (ie.- orogenic gold) with an existing NI 43-101 inferred resource of 64 K Oz Au capped at 20 gpt Au, with a cutoff grade of 4 gpt Au and average grade of 8 gpt Au. Historical drilling has intersected quartz veins grading up to 958 gpt Au over 1 m, and multiple other drill results above 30 gpt Au. The deposit is open along strike and at depth.
  • Vizsla Resources Corp. announced a fourth new discovery at its Panuco project in Sinaloa. The first four drill holes at the Tajitos vein have been completed on the Cinco Señores vein corridor. Highlighted intercepts from the three first drill holes comprise 4.5 m @ 1,200 gpt Ag, 7.29 gpt Au (including 1.15 m @ 2,210 gpt Ag, 16.13 gpt Au); 1.15 m @ 812 gpt Ag, 4.59 gpt Au. ”The Tajitos vein zone is composed of a quartz breccia vein with an early white locally banded quartz supporting andesite lithic clasts, followed by a later white to greyish quartz supporting brecciated clasts of earlier white quartz veins. This zone was then cut by a later white to clear quartz vein with local dark bands or patches of fine-grained sulphides that is cutting a zone of quartz psuedomorphs after bladed calcite and pink rhodochrosite. The better grades are in the earlier breccias associated with dark bands or dark patches of very fine-grained disseminated sulphides. This vein zone is hosted in a package of andesite flows and tuffs”.
  • Azucar Minerals Ltd. released drilling results from its El Cobre project in Veracruz. The holes in the Primo target returned 23.75 m  @ 0.22 gpt Au, 0.08% Cu; 8.50 m @ 0.71 gpt Au, 0.24% Cu; 123.50 m @ 0.14 gpt Au, 0.14% Cu. Azucar is currently preparing its facilities  and implementing the health protocols required to enable a safe return to work.

ON MINING

  • Santacruz Silver Mining Ltd. Reported operating and financial results for the second quarter 2020. At Veta Grande in Zacatecas, 37.1 K tonnes were milled to produce 204.6 K Oz AgEq at cash cost $17.68 per Oz AgEq and an AISC of $19.70 per Oz AgEq. At Rosario in San Luis Potosi, 20.8 K tonnes were milled to produce 141.4 K Oz AgEq at cash cost $14.23 per Oz AgEq and an AISC of $15.59 per Oz AgEq.
  • Equinox Gold Corp. reports that “mining activities at its Los Filos mine in Mexico have been suspended since September 3, 2020 as the result of an illegal road blockade by members of the nearby Carrizalillo community. The individuals allege non-compliance with the community social collaboration agreement signed in 2019. The mine remains staffed with a reduced workforce to maintain appropriate safety, security and environmental systems. Equinox Gold is in active discussions with the Carrizalillo community leaders to resolve the issues”.

ON FINANCING

  • Gold79 Mines Ltd. Approved the granting of 6 M stock options to officers, directors and consultants of the company (Taviche, Oaxaca).
  • Southern Silver Exploration Corp. plans to conduct a non-brokered private placement to raise $456 K (Cerro Las Minitas, Durango).
  • Golden Tag Resources Ltd. Granted 9.9 M incentive stock options to management and directors (San Diego, Durango).
  • Barksdale Resources Corp. increased the size of its non-brokered private placement financing for gross proceeds of up to $6.3 M (San Javier, Sonora).
  • GoGold Resources Inc. entered into an agreement on a bought deal basis with a syndicate of underwriters for the acquisition of shares for gross proceeds of C$30 M (Los Ricos, Jalisco).
  • Silver Dollar Resources Inc. has arranged a non-brokered private placement to raise up to $10.5 M (La Joya, Durango).
  • Redstar Gold Corp. announced the granting of 20.73 M stock options to directors, officers and consultants of the company (Cumaro, Oso Negro and La Lola, Sonora).
  • Inomin Mines Inc. announced a non-brokered private placement to raise up to $400 K in gross profits (La Gitana, Oaxaca).
  • Americas Gold and Silver Corp. closed its previously announced and up-sized bought deal financing for aggregate gross proceeds of C$39.4 M (Cosalá, Sinaloa).
  • Alien Metals Ltd. announced that it has conditionally raised £1.25 M (Los Campos and Los Celsos, Zacatecas).

ON RESOURCES AND DEVELOPMENT

  • Silver Bull Resources Inc. updated on its Sierra Mojada project in Coahuila. Sociedad Cooperativa de Exploración Minera Mineros Norteños, S.C.L. (Mineros Norteños), the group which is illegally blocking the Sierra Mojada project, has filed an appeal in the recently reopened Mexican courts to try and overturn a favorable ruling for Silver Bull on their lawsuit against the Company filed in 2014. The company sees the whole lawsuit as frivolous (looking for payment of an NSR on production that has not taken place), and explains Mineros Norteños has lost already three rulings, and Silver Bull expects a final ruling on the case, which cannot be appealed by Mineros Norteños, to be handed down from the courts within the next 6 months. Mineros Norteños has illegally blocked access to the project since September 2019.

ON DEALS AND CORPORATE ISSUES

  • Odyssey Marine Exploration Inc. had a financing transaction that provides the company with $11.3 M, a portion of which will be used to fund operating expenses of the “Exploraciones Oceánicas” phosphate project offshore Baja California Sur. “The investor group was anchored by Odyssey’s existing NAFTA funding partner, Poplar Grove LLC. Poplar Grove is managed by Drumcliffe LLC, a private investment management firm that oversees high-value litigation funding portfolios of over $14 billion in claims”.   
  • Telson Mining Corp. announced the resignation from its board of directors by Remigio Martínez Muller.
  • Tarachi Gold Corp. entered into an arm’s length option agreement with Exploradora Cobre de Bacanoras S. de R.L. de C.V. to acquire 100% interest in the group of mining concessions known as the Juliana, Juliana No.1, Juliana No.2 and Las Morita mining concessions covering 1,140 hectares in Sonora. “Tarachi’s projects now consist of the San Javier, Pretoria, Chivitas, Jabali, Juliana, Texana and Tarachi concessions for a total of 3,708 ha in the Mulatos District. The deal involves the payment of $40 K on the execution date, $30 K on six months, $30 K on 12 months, $30 K on 18 months, $60 K on 24 months, $60 K on 30 months, $150 K on 36 months, $150 K on 42 months, $150 K on 48 months, $700 K on 54 months and $700 K on 60 months, and the issue of 4 M common shares, 400 K of those on the execution date, 1 M shares on 12 months, 1 M shares on 24 months and 1.5 M shares on 26 months. The transfer of the concessions is subject to a 3% NSR from production, with the company having the right to buy at any time 1/3 of the NSR for $1 M.
  • Inomin Mines Inc. announced the execution of the agreement to acquire the La Gitana and Peña Blanca projects in Oaxaca. Inomin is acquiring 100% interest on both properties for 1 M common shares of Inomin, $25 K cash and the grant of 1.5 % NSR on the Peña Blanca property, of which 0.5% can be bought at any time for $1 M.

ON SOCIAL RESPONSIBILITY

  • Peñasquito continues to apply bio-security protocols. Up to date 27,359 fast test have been applied in the facilities and neighboring communities, resulting in six confirmed cases.
  • First Majestic Silver Corp. invested during 2019 US$3.8 M in local community, health youth programs, infrastructure and access to clean water. Over 25,600 medical consultations were provided in local communities. Planted 105,730 native plant species through reforestation initiatives .
  • Minera San Javier (NewGold) donated personal medical equipment to hospitals in San Luis Potosí, and personal medical equipment and sanitization supplies to the Cerro San Pedro municipality health clinics. The company continues to deliver food pantries to persons in need in Planta del Carmen, La Zapatilla, Monte Caldera, Cuesta de Campa, Calderón, Portezuelo and Cerro San Pedro.
  • Alamos Gold donated medical equipment and a mobile unit to the Sahuaripa DIF (Desarrollo Integral de la Familia) in Sonora.
  • SilverCrest’s Las Chispas project has accumulated 600 days without accidents in Sonora.

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: The whitish ledge from left to center is a silicified paleo water table in the Mexican Altiplano. Picture by Jorge Cirett.

The Mining and Exploration News in Mexico: Highlights on the Fourth Week of August, 2020.

Hydrothermal breccia

By Miguel A Heredia

During the thirty three week of the year (August 24th to August 30th, 2020), at least 39 press releases were announced by companies working in Mexico, with eleven commenting on Mexican issues, ten disclosing deals and corporate issues, six informing on exploration results, five announcing financial rounds, four reporting on resources and developments of their mine operations, two communicating production and financial results, and one discussing social issues. ON MEXICO ISSUES, AMLO stated in one of its morning press conferences that the Mining Fund will be re-activated and re-organized. The Undersecretary of Mining, The Mexican Mining Chamber (CAMIMEX) demanded that the Mining Fund go back to communities. Francisco Quiroga spoke about the role that the mining industry plays in Mexico. Mexico Mining sector captures USD $873M of Foreign Direct Investment (FDI). Fernando Alanis, President of the Mexican Mining Chamber (CAMIMEX), declared that the investment in mining exploration in Mexico could fall to its lowest level in 14 years. The Undersecretary of Mining, Francisco Quiroga, informed that in Mexico, mining is promoted without environmental disasters or social conflicts. Coeur Mining Inc, a US mining company, claimed MXP $1,000M (over USD $46M) to the government of Mexico.  Jorge Mátar Vargas, a businessman from Morelos, said that the investment of the Esperanza Silver mining project would reactivate the economy of Morelos, given the crisis it faces due to the COVID-19 pandemic. Napoleón Gómez Urrutia, senator and leader of one of the Mexican mining union tweeted that he won a labor lawsuit against Grupo Peñoles. Sergio Almazán is the new President of the Association of Metallurgical, Mining and Geologist Engineers of Mexico A.C (AIMMGM). Francisco Quiroga, Undersecretary of Mining of Mexico, declared that the recovery of the prices of the main minerals produced in Mexico will reinforce mining investment projects in the country. ON EXPLORATION, In Sonora, Tocvan released results from the structural analysis carried out at its El Pilar project, Silver Viper reported results from ten drill holes collared at its El Rubi project, and Tarachi announced the beginning of a 5,000m drilling program at its Tarachi Gold project. In Sinaloa, Vizsla released drill results from its Panuco project. In Durango, Mithril released drilling results from its Copalquin project. ON MINING, Impact reported Q2, 2020 production and financial results from its Zacualpan mining district in the State of Mexico. Santacruz reported the filing of a NI43-101 technical report for its Zimapan mine in Hidalgo.  ON FINANCING, Redstar completed a non-brokered private placement for gross proceeds of CAD $7M (Heliodor properties, Mexico). Kootenay closed its previously announced private placement for gross proceeds of $7M (Columba project, Chihuahua). Capitan Mining closed a private placement for gross proceeds of $3,840,855 (Peñoles project, Durango). VVC announced a non-brokered private placement to raise gross proceeds of up to CAD $3.3M (Kaity Copper project, Chihuahua).  Gold Resource declared its August monthly dividend to shareholders (Arista mine, Oaxaca). ON RESOURCES AND DEVELOPMENT, Mexus provided an update on progress at its Santa Elena mine in Sonora.  Silver Dollar reported phase 3 drilling results not previously reported by SilverCrest from its la Joya project in Durango. GoGold announced the filing of a NI43-101 technical report on the initial mineral resource estimate for their Los Ricos South project in Jalisco. Santacruz reported the filing of a NI43-101 technical report for its Zimapan mine in Hidalgo. Golden Minerals released results from its resource definition drill program at its Rodeo project in Durango.  ON DEALS AND CORPORATE ISSUES, Redstar announced the acquisition of Heliodor Metals Limited and appointed its new CEO. Orla appointed its Senior VP Exploration (Camino Rojo project, Zacatecas). Sonoro announced that its board of directors approved the change of the company´s name to Sonoro Gold Corp (Cerro Caliche project, Sonora). Azure presented results from its annual general meeting of shareholders (Mesa de Plata project, Sonora).   Newmont announced the replacement of the General Manager of the Peñasquito mine, Zacatecas.  Silver Spruce granted stock options to its CFO (El Mezquite project, Sonora). SilverCrest acquired El Picacho property near its Chispas project in Sonora. Orogen (former Evrim) optioned the Sarape Au property in Sonora to Minera Hochschild SA de CV, a subsidiary of Hochschild Mining PLC. Comet executed a share purchase a JV agreement with El Alamo Resource to acquire 100% interest in the Santa Teresa project in Baja California. ON SOCIAL RESPONSIBILITY, Fresnillo plc trains its staff on COVID-19.

ON MEXICO ISSUES

  • Andrés Manuel López Obrador (AMLO), President of Mexico, stated in one of its morning press conferences held in Zacatecas that the Mining Fund will be re-activated and re-organized. He cited that, in the case of the Mining Fund, the resources reached the governments municipalities, but not to the communities.
  • The Mexican Mining Chamber (CAMIMEX), demanded that the Mining Fund go back to communities. Mexico imposed a 7.5% royalty in 2014, plus a special mining tax of 0.5% on gold and silver operations. Most of the proceeds go to social infrastructure projects in mining communities, distributed through the Mining Fund. However, under a reorganization announced by President Andrés Manuel López Obrador, the funds were redirected to a federal budget for schools. Although AMLO has said that the previous system recorded corruption cases and sometimes the cash for projects did not arrive, some industry experts consider that the Mining Fund is a critical tool for mines and projects to win and maintain support of the communities.
  • The Undersecretary of Mining, Francisco Quiroga, spoke about the role that the mining industry plays in Mexico. He said that mining, which is carried out generally in remote locations with difficult access, is a great generator of foreign exchange, as it is mainly an exporter in the case of Mexico, where it contributes more than 4% of GDP. He also emphasized that only small and medium-sized mines require investments of between USD $350-500M, and that medium-scale mines generate 1,000 to 2,000 direct jobs and around 5,000 – 10,000 indirect jobs.
  • Mexico Mining sector, captures USD $873M of Foreign Direct Investment (FDI) in the first half of 2020, a year-on-year decline of 18.6%, according to statistics from the Ministry of the Economy. About 25% of the Mexican territory has been explored in detail, so there is a great opportunity for the development of new projects. Mexico places 12 to 19 minerals year after year within the top 10 production places globally. Development risk in mining is concentrated in the exploration stages and decreases as the operation stage progresses.
  • Fernando Alanis, President of the Mexican Mining Chamber (CAMIMEX), declared that the investment in mining exploration in Mexico could fall to its lowest level in 14 years, although the drop would be even greater given that it does not consider the impact of the COVID-19 pandemic. He said that in recent years exploration activities in the country have suffered a strong fall due to the uncertainty of investors. “Mexico has lost attractiveness as a mining investment destination… that is a fact”. “We have seen a very important reduction of more than 150 exploration companies that are no longer in Mexico and that is worrying.”
  • The Undersecretary of Mining, Francisco Quiroga, informed that in Mexico, the mining sector has to do it environmentally sustainable and socially inclusive, with zero fatalities, no environmental disasters or generating social conflicts. He also informed that active mining concessions represent only four million hectares, that is, a little more than 2% of the national territory and after conducting a review, total concessions decreased from 25 thousand to 21 thousand, which represented a reduction from 21 million to 16 million hectares.
  • Coeur Mining Inc , a US mining company, claimed MXP $1,000M (over USD $46M) to the government of Mexico. Coeur, the fifth silver producer in Mexico, seeks to obtain this compensation from the federal government because the Mexican Tax Administration (SAT) did not refund the VAT. This is the second case that is presented so far in 2020. The first was the notice of the Canadian company First Majestic Silver Corp to the Mexican government, also due to an action by the SAT. On May 13, in its notification, it communicated that the claim amounts to USD $500M, in addition to the interest generated, expenses and costs applicable in the arbitration procedure.
  • Jorge Mátar Vargas, a businessman from Morelos, said that the investment of the Esperanza Silver mining project would reactivate the economy of Morelos, given the crisis it faces due to the COVID-19 pandemic. He also argued that with the Esperanza Silver mining project, state economic activity would be detonated. It would help reduce the deficit of jobs in the state and rescue small entrepreneurs. This project represents a millionaire private investment for the entity, with the capacity to generate hundreds of direct and indirect jobs and is a potential to strengthen the local economy.
  • Napoleón Gómez Urrutia, senator and leader of one of the Mexican mining union tweeted (by the way, a very strange tweet), that he won a labor lawsuit against Grupo Peñoles for unjustified dismissal, for which the company must pay him MXP $1M of lost wages and benefits for 12 years and 8 months that he worked for Minera Mexicana La Ciénega.
  • Sergio Almazán is the new President of the Association of Metallurgical, Mining and Geologist Engineers of Mexico A.C (AIMMGM) for the biennium 2020-2022.
  • Francisco Quiroga, Undersecretary of Mining of Mexico, declared that the recovery of the prices of the main minerals produced in Mexico will reinforce mining investment projects in the country and will allow mining to be part of the competitive advantage for other industries in the country such as manufacturing.

ON EXPLORATION

  • Tocvan Ventures Corp., JV partner of Colibri Resource Corporation, released results from the structural analysis carried out at its El Pilar project in Sonora. “The initial overview of the 3D inversion of magnetic susceptibility data has revealed stand-out significant major structures that are universally associated with “plumbing” systems for gold-silver fluid flow and deposition. Structures appear as shear zones, faults, brecciated rock, rotational gashes within shear zones and other such dilation structures”. The main identified structure is a 1,000m by 250m large NW-SE trending structure bounded by additional N-S trending structures with approximate lengths of 300m. The NW-SE structure as been interpreted as a structural corridor holding a shear zone with rotational features that suggest excellent means of plumbing for metal-mineral-rich fluids to flow through and deposit.
  • Silver Viper Minerals Corp., reported results from ten drill holes collared its La Virginia project in Sonora. Of the ten holes, six were drilled at El Rubi and four at Macho Libre. At El Rubi area, a broad zone of mineralization was encountered in hole LV20-245#1 with 0.76 g/t Au and 38 g/t Ag over a true width (TW) of 55.2m, including 1.79 g/t Au and 92 g/t Ag over a TW of 3m; and 2.49 g/t Au and 152 g/t Ag over a TW of 1m; and 7.98 g/t Au and 353 g/t Ag over a TW of 2.5m, including 20.7 g/t Au and 854 g/t Ag over a TW of 0.5m; hole LV20-245#2 with 0.6 g/t Au and 14 g/t Ag over a TW of 11.2m, including 1.43 g/t Au and 4 g/t Ag over a TW of 1.5m; and hole LV20-245#3 with 0.56 g/t Au and 22 g/t Ag over a TW of 7.5m, including 3.26 g/t Au and 19 g/t Ag over a TW of 0.5m, and an interval of 0.93 g/t Au and 124 g/t Ag over a TW of 0.2m. At Macho Libre, the most significant drill intercept was encountered at hole LV20-240M with 0.5 g(t Au and 7 g(t Ag over a TW of 0.6m.
  • Tarachi Gold Corp., announced the beginning of a 5,000m drilling program at its Tarachi Gold project in Sonora. The company plans to start the drill program at La Dura mine where channel sampling returned 6.34 g/t Au over 62.55m.
  • Vizsla Resources Corp., released the first step-out drill results along the Napoleon Vein corridor at its Panuco project in Sinaloa. Hole NP-20-18, located 1km north from the original discovery at Napoleon encountered 3.76 g/t Au, 689 g/t Ag, 0.2% Pb, 0.6% Zn (1,019 g/t AgEq) over a width of 2.5m, including 7.96 g/t Au, 1,515 g/t Ag, 0.5% Pb, and 1.2% Zn (2,206 g/t AgEq) over a width of 1m. Assays are pending for holes NP-20-19 and NP-20-21 separated each other for a distance of 90m.
  • Mithril Resources Ltd, announced results from the two first drill holes collared at its Copalquin project in Durango. Hole CDH-001 encountered 34.72 g/t Au and 3,129 g/t Ag over 3m, including 88.4 g/t Au and 6,750 g/t Ag over 1m; and hole CDH-002 with 5.64 g/t Au and 325 g/t Ag over 4.55m, including 9.82 g/t Au and 574 g/t Ag over 1.5m, plus 9.27 g/t Au and 825 g/t Ag over 0.5m. The two first holes are part of a 5,000m (35 holes) drilling program and intercepted the Soledad vein, confirming historically bonanza grades.

ON MINING

  • Impact Silver Corp., reported Q2, 2020 production and financial results from its Zacualpan mining district, State of Mexico. Despite losing nearly half the quarter (April to June) due to mandatory shutdown, Impact milled 25,602 tonnes with an average mill feed grade of Ag of 187 g/t to produced 129,570 Oz Ag. Q2, 2020 production at the Guadalupe mill came from the Guadalupe mine (37%), the San Ramon mine (23%), the Cuchara mine (23%), and the Veta Negra mine (17%). Impact reported revenues for $2.84M and an adjusted EBIDTA of $0.48M. At June 30, 2020, cash position was at $6.3M with working capital at $5.3M.
  • Santacruz Silver Mining Ltd., reported the filing of a NI43-101 technical report for its Zimapan mine in Hidalgo. Zimapan consists of 34 mining concessions totalling 5,138.76 ha and has had an extensive mining history dating back to the 1660´s. There are fourteen known mineral zones that are hosted in Lower Cretaceous limestone and calcareous shales. The zones contain targets that range from 3-10 m in width that have been traced 40-1000 m along strike and 40-590 m down dip. The property has been in production since January 1, 2010 and as of December 31, 2019 Carrizal Mining mined approximately 5.88M tonnes of mineralized material, including 3.43M tonnes at head grades ranging from 73-101 g/t Ag, 0.4-0.5% Pb, 1.8-2.8% Zn, and 0.49-0.67 % Cu from the Monte mine, and  45 MT at head grades ranging from 82-124 g/t Ag, 0.6-1.2 % Pb, 2.-4.4 % Zn, and 0.28-0.48 % Cu from the Carrizal mine.

ON FINANCING

  • Redstar Gold Corp., completed a non-brokered private placement for gross proceeds of CAD $7M. The company plans to use the net proceeds for exploration drilling and resource delineation, updating the resource and general working capital (Heliodor properties, Mexico).
  • Kootenay Silver Inc., closed its previously announced private placement for gross proceeds of $7M. The Company intends to use the net proceeds from the offering for exploration and development activities, working capital requirements and other general corporate purposes (Columba project, Chihuahua).
  • Capitan Mining Inc., closed its private placement for gross proceeds of $3,840,885.00 instead of the 10,000,000 shares ($2,000,000) originally contemplated. Net proceeds will be used to fund a focused drill program at the Peñoles project in Durango, additional project acquisitions and general corporate purposes.
  • VVC Exploration Corporation, announced a non-brokered private placement to raise gross proceeds of up to CAD $3.3M. Gross proceeds will be used for development of its Kaity project, Chihuahua, including costs associated with various permits, metallurgical bench testing, and investigation, evaluation and implementation of the Gloria pilot mining; option payments in Mexico; current accounts payable; general administrative expenses; and working capital.
  • Gold Resource Corporation, declared its August monthly dividend to shareholders. It will consists of one-third of a cent per common share for August 2020 payable on September 23, 2020 to shareholders of record as of September 11, 2020. (Arista mine, Oaxaca).

ON RESOURCES AND DEVELOPMENT

  • Mexus Gold US, provided an update on progress at its Santa Elena mine in Sonora. The company improved the crushing circuit to maximize efficiencies, hired two new equipment operators and a lab technician, and acquired a 330 excavator a 40 ton haul truck and repaired existing equipment. The company expects to show an increase in production during the Q2 of its fiscal year (July through September).
  • Silver Dollar Resources Inc., reported phase 3 drilling results not previously reported by SilverCrest from its la Joya project in Durango. This in-fill drilling program consisted of 17 drill holes targeted to advance towards an updated resource model in H1, 2015. Significant drill intercepts were encountered in hole LJDD14-109 with 0.73 g/t Au, 33 g/t Ag and 0.36% Cu (119 g/t AgEq) over a width of 21.92m, including 3.45 g/t Au, 12 g/t Ag and 0.1% Cu (231 g/t AgEq) over a width of 4.4m; LJDD14-114 with 0.09 g/t Au, 193 g/t Ag and 2.58% Cu (501 g/t AgEq) over a width of 1.2m and 0.38 g/t Au, 43 g/t Ag, and 0.27% Cu (98 g/t AgEq) over a width of 66.4m. including 1.26 g/t Au, 219 g/t Ag, and 1.48% Cu (468 g/t AgEq) over a width of 3.15m; hole LJDD20-115 with 0.06 g/t Au, 234 g/t Ag, and 1.24% Cu (382 g/t AgEq) over a width of 6.1m, including 0.17 g/t Au, 734 g/t Ag, and 3.75% Cu (1,182 g/t AgEq) over a width of 1m; hole LJDD20-116 with 0.06 g/t Au, 76 g/t Ag, and 0.55% Cu (144 g/t AgEq) over a width of 25.1m, including 0.04 g/t Au, 185 g/t Ag, and 1.37% Cu (348 g/t AgEq) over a width of 9.1m, and 0.11 g/t Au, 602 g/t Ag, and 4.64% Cu (1,151 g/t AgEq) over a width of 1.8m, and 0.29 g/t Au, 106 g/t Ag, and 1.2% Cu (234 g/t AgEq) over a width of 23.1m, including 0.09 g/t Au, 723 g/t Ag, and 8.97% Cu (1,778 g/t AgEq) over a width of 2m.
  • GoGold Resources Inc., announced the filing of a NI43-101 technical report on the initial mineral resource estimate for their Los Ricos South project in Jalisco. Measured and indicated mineral resource are 10M tonnes of 199 g/t AgEq to contain 63.7M Oz AgEq, and Inferred resources are 3.3M tonnes of 190 g/t AgEq to contain 19.9M Oz AgEq. Los Ricos South mineral resource is potentially amenable to both open pit and bulk underground mining methods. The company also expanded the surface rights agreement. On August 9,2020 the Ejido Cinco Minas, which owns the surface rights over the majority of the Los Ricos South concessions including all of those within the mineral resource estimate, signed an agreement with the company for a period of 12 years with an additional 12 year renewal period.
  • Santacruz Silver Mining Ltd., reported the filing of a NI43-101 technical report for its Zimapan mine in Hidalgo. Zimapan consists of 34 mining concessions totalling 5,138.76 ha and has had an extensive mining history dating back to the 1660´s. There are fourteen known mineral zones that are hosted in Lower Cretaceous limestone and calcareous shales. The zones contain targets that range from 3-10 m in width that have been traced 40-1000 m along strike and 40-590 m down dip. The property has been in production since January 1, 2010 and as of December 31, 2019 Carrizal Mining mined approximately 5.88M tonnes of mineralized material, including 3.43M tonnes at head grades ranging from 73-101 g/t Ag, 0.4-0.5% Pb, 1.8-2.8% Zn, and 0.49-0.67 % Cu from the Monte mine, and  45 MT at head grades ranging from 82-124 g/t Ag, 0.6-1.2 % Pb, 2.-4.4 % Zn, and 0.28-0.48 % Cu from the Carrizal mine.
  • Golden Minerals Company, released results from its resource definition drill program at its Rodeo project in Durango. Golden reported results from 11 drill holes with significant intercepts showing wide zones of high-grade near-surface Au mineralization. Highlights include hole RDO_20_012 with 6.66 g/t Au and 14 g/t Ag over 24.5m, including 9.3 g/t Au and 15 g/t Ag over 8.6m; hole RDO_20_014 with 5.87 g/t Au and 27 g/t Ag over 23.5m, including 8.83 g/t Au and 38 g/t Ag over 12.9m; and hole RDO_20_017 with 2.85 g/t Au and 11 g/t Ag over 21.4m, including 5.1 g/t Au and 15 g/t Ag over 6m.

ON DEALS AND CORPORATE ISSUES

  • Redstar Gold Corp., announced the acquisition of Heliodor Metals Limited., and appointed its new CEO and board of directors. To acquire Heliodor, Redstar issued an aggregate of 86,621,003 shares to the former Heliodor shareholders in exchange for all the issued and outstanding Heliodor securities.
  • Orla Mining Ltd., announced the appointment of its Senior VP Exploration (Camino Rojo project, Zacatecas).
  • Sonoro Metals Corp., announced that its board of directors approved the change of the company´s name to Sonoro Gold Corp (Cerro Caliche project, Sonora).
  • Azure Minerals Limited, presented results from its annual general meeting of shareholders (Mesa de Plata project, Sonora).
  • Newmont Corporation, announced the replacement of the General Manager of the Peñasquito mine, Zacatecas. The former General Manager was ceased for violations of Newmont´s Code of Conduct.
  • Silver Spruce Resources Inc., granted 300K stock options to its CFO (El Mezquite project, Sonora).
  • SilverCrest Metals Inc., announced the acquisition of El Picacho property, near its Las Chispas project in Sonora, from American Metal Mining. The purchase price paid by SilverCrest was for the amount of USD $1.6M and is for a 100% ownership in 11 mining concessions totalling approximately 7,060 hectares. The company also paid all the mining taxes to bring these concessions to good standing. The Property was a historic gold and silver producer, with the first noted production in late 1800s with grades greater than 15 g/t Au. “There are seven (7) low-sulphidation epithermal main veins on the concessions, with numerous near parallel hanging and footwall veins. The main veins have a known cumulative strike length of over 10km with widths ranging from 0.5 to 15m”.
  • Orogen Royalties Inc., (former Evrim) optioned the Sarape Au property in Sonora to Minera Hochschild SA de CV, a subsidiary of Hochschild Mining PLCHochschild can earn a 100% interest in the Sarape project by making cash payments of USD $5.35M and completing expenditures of USD$5M over a five-year period. Upon exercise of the option, Hochschild will grant to Orogen a 3% NSR of which 1% can be purchased for USD $2M.
  • Comet Resources Ltd., executed a share purchase and JV agreement with El Alamo Resources Limited to acquire 100% interest in the Santa Teresa project in Baja California. The acquisition will be completed on a staged basis, with Comet acquiring an initial 50% interest by making a refundable $100K cash payment. The remaining 50% interest will be acquired upon a decision to mine being made in respect of the Project within a two year period. Comet is now 50% owner of the Santa Teresa property and has the option to increase its ownership to 100% within two years. Historical production in the surrounding El Alamo district has been estimated in between 100K-200K Oz Au. The Santa Teresa project is comprised of two mineral claims totalling 202 hectares. Previous operator drilled 32 holes with significant results such as 32.4 g/t Au over 2m ; 958.4 g/t Au over 1m; 38 g/t Au over 2.5m; 39 g/t Au over 3.9m; 19.9 g/t Au over 3m; 125.9 g/t Au over 1m; 14.4 g/t Au over 3.1m; and 16 g/t Au over 3.1m. The company plans are to re-assay historic drill core to prepare a JORC compliant mineral resource estimate and then to test the upside potential at under explored areas.

ON SOCIAL RESPONSIBILITY

  • Fresnillo plc, seeks to promote knowledge about COVID-19 among its employees and train them to carry out all the actions and measures necessary to prevent the spread of the virus in their homes, community and in the company.

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 related to an epithermal system in a prospect in Chihuahua, Mexico.  Photo by Miguel A Heredia.

The Mining and Exploration News in Mexico: Highlights on the Second Week of August, 2020.

Phyllic alteration

By Miguel A Heredia

During the thirty three week of the year (August 10th to August 16th, 2020), at least 43 press releases were announced by companies working in Mexico, with twelve disclosing deals and corporate issues, seven announcing financial rounds, six communicating production and financial results, six informing on exploration results, five reporting on resources and development of their mine operations, four discussing social issues, and three commenting on Mexican issues. ON MEXICO ISSUES, Mining drives the economy of the municipalities of Santa Barbara and San Francisco del Oro, Chihuahua. The Undersecretary of Mining, Francisco Quiroga and the Major of Progreso, Coahuila, Federico Quintanilla started up the modern “La Esperanza” locomotive at the Santa Barbara mine, with the purpose of promoting a fair and safe reactivation of coal orders that will be transformed into jobs for this municipality. Mexican Au production will suffer declines due to COVID-19 pandemic.  ON EXPLORATION, In Sonora, Colibri Resource began a high resolution mag survey at its Evelyn project, its JV partner Silver Spruce commenced a mapping and sampling program at its El Mezquite, and Silver Tiger reported underground channel sampling results from its El Tigre project. In Chihuahua, Kootenay presented drill results from 4 holes collared at its Columba project. In Sinaloa, GR Silver released drill results from 14 holes drilled by previous companies at its Plomosas project but not previously released, and Vizsla reported a second discovery drilling at its Panuco project.  ON MINING, Argonaut, Equinox, GoGold, MAG Silver, and Santacruz Silver presented Q2, 2020 production and financial results from their Mexican mine operations; Starcore presented Q1, 2021 production and financial results from its San Martin mine in Queretaro.  ON FINANCING, Canuc closed a non-brokered private placement for gross proceeds of $225K (San Javier project, Sonora). Discovery Metals closed a non-brokered private placement for gross proceeds of CAD $35M, including CAD $15M investment from Eric Sprott (Cordero project, Chihuahua).  Orex Minerals announced a non-brokered private placement offering for aggregate gross proceeds of up to $5.5M (Sandra and Coneto projects, Durango). One World Lithium closed a portion of its previously announced non-brokered private placement raising gross proceeds for CAD $336K (Salar del Diablo project, Baja California). Silver Spruce announced a private placement financing for gross proceeds of up to $1.6M (El Mezquite project, Sonora).  Sonoro Metals closed a non-brokered private placement financing for gross proceeds of $8M including the fully subscribed overallotment option (Cerro Caliche project, Sonora). Sable Resources entered    into an agreement with Sprott Capital for a private placement financing for gross proceeds of up to CAD $5M (Margarita project, Chihuahua). ON RESOURCES AND DEVELOPMENT, SilverCrest released drill results from its Las Chispas project. Golden Minerals announced results from 9 diamond holes of its in-fill resource definition drill program at its Rodeo project in Durango. Coeur provided mid-year 2020 exploration update on its Palmarejo project in Chihuahua. SilverCrest provided an update of the activities carried out at its Las Chispas project in Sonora during the period H1, 2020. Orla Mining received from the Mexican Federal Environmental Department (“SEMARNAT”), the environmental permit required for the development of its Camino Rojo project in Zacatecas.   ON DEALS AND CORPORATE ISSUES, Brigadier signed a definitive agreement to acquire Picachos property in Sinaloa, including the past producing San Agustin mine, and made the appointment of a new member to its board of directors.  Magna Gold entered into a definitive option agreement with a private party to acquire a 100% undivided interest in the Los Muertos property in Sonora. Silver Dollar signed a definitive agreement with First Majestic to acquire up to a 100% interest in the La Joya property in Durango. Alien appointed IBK Capital Corp to assists it with the project level funding and JV process for its Donovan 2 project in Zacatecas. Avino has granted the exclusive right to Gray Rock Resources to acquire a 100% interest in the Ana Maria and Laberinto properties in Durango. Evrim reported results from its annual general meeting of shareholders, and approved the merger with Renaissance Gold (Ermitaño project, Sonora).  Excellon announced results from its 2020 annual general meeting of shareholders (La Platosa mine, Durango). Riverside completed the spin-out of shares of Capitan Mining Inc. (Peñoles mining district, Durango). Monarca closed the sale of the El Sol project in Durango to Southern Silver and appointed a new member to its board of directors (Tejamen project, Durango). Minera Alamos granted stock options to an officer of the company (Santana project, Sonora).  ON SOCIAL RESPONSIBILITY, Minera Media Luna (Torex Gold), inaugurated a waste water treatment system at Cocula municipality of Guerrero. Grupo Mexico Foundation donated seven assisted breathing ventilators, as well as personal protection equipment for ambulances from the Ministry of Health of Coahuila. Personnel of Fresnillo plc will carry out rapid tests of COVID-19 in the communities and neighborhoods near the area of operation of the mines in the Fresnillo district.

ON MEXICO ISSUES

  • Mining drives the economy of the municipalities of Santa Barbara and San Francisco del Oro, Chihuahua. The main source of employment in Santa Barbara and San Francisco del Oro is mining. If not, these two towns could become “ghost” cities. Currently these two areas of the south of the state have prospered thanks to the establishment of mining companies that have taken advantage of the resources from their respective foundations, which were precisely constituted by the discovery of mines at the time of the Viceroyalty and until now they continue operating.
  • The Undersecretary of Mining, Francisco Quiroga and the Major of Progreso, Coahuila, Federico Quintanilla started up the modern “La Esperanza” locomotive at the Santa Barbara mine, with the purpose of promoting a fair and safe reactivation of coal orders that will be transformed into jobs for this municipality. In meeting with the Undersecretary of Mining, the mayor explained the need to request coal orders from the Federal Electricity Commission (CFE) to ensure investment and, above all, return employment to hundreds of families who depend on this activity in the municipality of Progress, Coahuila.
  • Mexican Au production, will suffer a decrease of more than 300K Oz in Au production this year due to the COVID-19 pandemic. The figure represents 9.3% of the 3.46M Oz Au of the production originally projected for 2020, according to BNamericas’ forecast and estimates for 20 companies in March, 2020. Mexico produced 126,607 Oz Au in May, 37.5% less than the same month last year, according to the national Institute of Statistics and Geography (INEGI).

ON EXPLORATION

  • Colibri Resource Corporation, began a high resolution mag survey at its Evelyn project in Sonora. The planned airborne magnetic survey will consist of 150 km in 59 N-S lines at 50m line spacing and 5 E-W tie-lines at 500m separation using a DRONE equipped with a Mag magnetometer. Results from this mag survey along with surface chip and channel samples, property wide soil sampling and previous drill results will be analyzed to plan drill targets for a fall 2020 drill program.
  • Silver Spruce Resources, has mobilized a crew to its El Mezquite property in Sonora to conduct geology mapping of the entire property and collect additional rock samples for analysis as well as for an study of alteration intensity and style using a Terraspec hyperspectral tool.
  • Silver Tiger Metals Inc., presented underground channel sampling results from its El Tigre project in Sonora. This sampling program is intended to generate drill targets. In the Fundadora Vein, highlights include 4.44 g/t Au and 3,064 g/t Ag (3,397 g/t AgEq) over a true width (TW) of 0.5m; 8.6 g/t Au and 2,500 g/t Ag (3,145 g/t AgEq) over a TW of 0.4m; and 22.3 g/t Au and 606 g/t Ag (2,278 g/t AgEq) over a TW of 1.2m. At Protectora Vein, highlights include 32.99 g/t Au and 2,283 g/t Ag (2,474 g/t AgEq) over a TW of 0.4m. At Caleigh Vein, highlights include 26.65 g/t Au and 1,679 g/t Ag (1,999 g/t AgEq) over a TW of 0.4m. At the Aquilas Norte area, sampling returned significant results such as 4.71 g/t Au and 1,709 g/t A (2,062 g/t AgEq) over a TW of 0.3m; and 1.37 g/t Au and 1,843 g/t Ag (1,946 g/t AgEq) over a TW of 0.3m.
  • Kootenay Silver Inc., presented drill results from additional four holes collared at its Columba project in Chihuahua in the J and Z Veins. Highlights include hole CDH-20-060 with 132 g/t Ag over a width of 64m, including two notable intervals: 1,025 g/t Ag over 1m within 226 g/t Ag over 9m, and 361 g/t Ag over 11m, including 608 g/t Ag over 5m, and 1,160 g/t Ag over 1m, all within 229 g/t Ag over 22m; and hole CDH-19-030 with 200 g/t Ag over 25.85m, including 415 g/t Ag over 11.15m, including 982 g/t Ag over 1.9m within 721 g/t Ag over 4.07m. The Ag mineralization in the J and Z Vein system is related to silicified breccias and thin quartz vein stockworks following classic banded quartz vein structures more characteristic of the F-Vein.
  • GR Silver Mining Ltd., announced drill results from 14 holes drilled by previous companies but not previously released from its Plomosas project in Sinaloa, revealing the presence of wide zones of Au mineralization in addition to attractive near surface Ag-Pb-Zn mineralization. Significant drill intercepts were encountered at hole PLSS18-02 with 0.2 g/t Au, 350 g/t Ag, 0.3% Pb, and 0.2% Zn (383 g/t AgEq) over a true width (TW) of 2m, including 0.5 g/t Au, 1,559 g/t Ag, 1.4% Pb, and 1.1% Zn (1,687 g/t AgEq) over a TW of 0.4m; hole 219 with 1.9 g/t Au, 191 g7t Ag, 7.1% Pb, and 3.4% Zn (716 g/t AgEq) over a TW of 4.4m, and hole 235 with 2.3 g/t Au, 134 g/t Ag, 0.1% Pb, and 2.4% Zn (437 g/t AgEq) over a TW of 0.8m; and hole 244 with 1.7 g/t Au, 17 g/t Ag and 0.7% Zn (209 g/t AgEq) over a TW of 12.6m. These drill results define a mineralized strike length of up to 700m, with field evidence and underground mapping indicating further continuity along strike and down dip.
  • Vizsla Resources Corp., reported a second discovery drilling at the San Carlos mine on the Animas Vein corridor within its Panuco project in Sinaloa. Highlights include hole AM-20-15 with 0.61 g/t Au and 93 g/t Ag (144.9 g/t AgEq) over 0.35m; and hole AM-20-16 with 1.14 g/t Au and 130 g/t Ag (229 g/t AgEq) over 16.25m, including 2.19 g/t Au and 231 g/t Ag (421 g/t AgEq) over 6.75m, including 5.08 g/t Au and 821 g/t Ag (1,245 g/t AgEq) over 1.50m. The San Carlos Mine is over 6 km east of the recent discovery at the Napoleon vein corridor.

ON MINING

  • Argonaut Gold Inc., announced Q2, 2020 production and financial results from their Mexican operations. At El Castillo mine in Durango, Argonaut processed 902K tonnes of 0.43 g/t Au to produce 9,151 Oz Au and 19,547 Oz Ag or 9,394 GEOs (Oz AuEq), at a cash cost of $862 per Oz Au sold. At San Agustin mine in Durango, the company processed 1.18M tonnes of 0.33 g/t Au to produce 13,403 Oz Au and 69,242 Oz Ag (14,288 GEOs) at a cash cost of $76 per Oz Au sold. The El Castillo complex (Castillo + San Agustin mines) produced 23,662 GEOs at a cash cost of $802 per Oz Au sold during Q2, 2020. At La Colorada mine in Sonora, Argonaut processed 506K tonnes of 0.42 g/t Au to produce 7,537 Oz Au and 26,554 Oz Ag (7,869 GEOs) at a cash cost of $1,169 per Oz Au sold.
  • Equinox Gold Corp., did not report production results by single operation but presented a consolidated production of 127K Oz Au from their mine operations and sold 125.8K Oz, having earnings of USD $85.1M, a net loss of USD $58.7M, and an adjusted net income of USD $26.6M. For Los Filos mine in Guerrero, most of the period Q2, 2020, the mine was on suspension due to the COVID-19 pandemic but the company provided a H2, 2020 guidance and expects to produce 90K-100K Oz Au at an AISC of USD $850-950 per Oz Au.
  • GoGold Resources Inc., presented financial results from its Parral Tailings project in Chihuahua for the period Q2, 2020. GoGold stacked 282.7K tonnes at a cash and AISC cost of USD $12.13 and USD $14.93 per Oz AgEq respectively. The company sold 469.5K Oz AgEq with revenue of USD $7.9M and a free cash of flow of USD $2.2M.
  • MAG Silver Corp., announced that underground production at its Juanicipio project in a JV with Fresnillo plc in Zacatecas is expected to commence soon. An anticipated processing of 16K tonnes per month from which 8,850 tonnes were successfully at the Fresnillo pant on a test basis while the Juanicipio plant is commissioned. The capex expended from January 1, 2018 to June 30, 2020 is approximately USD $172,695 leaving an estimated USD $267,305 of remaining initial capital (MAG’s 44% estimated remaining share is USD $117,614 as at June 30, 2020). This funding requirement would be reduced by both: existing cash held in Minera Juanicipio as at June 30, 2020 (USD$35,337); and, expected cash flows generated from mineralized rock sold and processed through the Fresnillo processing plant referenced above.
  • Santacruz Silver Mining ltd., reported Q2, 2020 production and financial results from its Mexican mine operations. Consolidated production results of Santacruz for the period Q2, 2020 resulted in 116,799 tonnes processed to produce 216K Oz Ag, 57 Oz Au, 679K Lb Cu, 1.68M Lb Pb, and 4.85M Lb Zn. At Zimapan mine in Hidalgo, the company processed 106,725 tonnes of 75 g/t Ag, 0.42% Cu, 0.7% Pb, and 2.5% Zn to produce 181.8K Oz Ag, 679K Lb Cu, 1.5M Lb Pb, and 4.45M Lb Zn. At Rosario mine in San Luis Potosi, Santacruz processed 10,074 tonnes of 0.25 g/t Au, 113 g/t Ag, 0.8% Pb, and 2% Zn to produce 57 Oz Au, 34.2K Oz Ag, 154K Lb Pb, and 392.4K Lb Zn.
  • Starcore International Mines Ltd., presented production results from its San Martin mine in Queretaro for the period Q1, 2021. Starcore processed 59.1K tonnes of 1.7 g/t Au and 29 g/t Ag at metallurgical recoveries of 88.77% and 56.53% respectively to produce 3,250 Oz AuEq.

ON FINANCING

  • Canuc Resources Corporation, closed a non-brokered private placement for gross proceeds of $275K. Net proceeds will be used for exploration at its San Javier project in Sonora.
  • Discovery Metals Corp., closed a non-brokered private placement for gross proceeds of CAD $35M, including CAD $15M investment from Eric Sprott. After this investment. Mr. Sprott will own approximately 26.4% interest in Discovery Metals on a non-diluted basis or 29.9% on a partially diluted basis assuming the exercise of warrants held by Mr. Sprott. Net proceeds will be used to fund Discovery´s continuing exploration programs at its Cordero project in Chihuahua and its other projects in Coahuila.
  • Orex Minerals Inc., announced a non-brokered private placement offering for aggregate gross proceeds of up to $5.5M (Sandra project. Durango). Mr. Eric Sprott intends to subscribe for the entirety of the offering. Net proceeds will be used for working capital requirements and other general corporate purposes (Sandra and Coneto properties in Durango).
  • One World Lithium Inc., closed a portion of its previously announced non-brokered private placement raising gross proceeds for CAD $336K. Net proceeds will be used primarily for funding part of its Salar del Diablo drilling program in Baja California and for working capital.
  • Silver Spruce Resources Inc., announced a private placement financing for gross proceeds of $1.6M. The proceeds will be used for exploration of the El Mezquite and Pino de Plata projects in Sonora and Chihuahua states respectively.
  • Sonoro Metals Corp., closed a non-brokered private placement financing for gross proceeds of $8M including the fully subscribed overallotment option. The Company plans to use the proceeds from the offering to launch Phase One of the 2020-21 Core Drilling Program to test its Cerro Caliche epithermal system’s potential to host high-grade gold mineralization at depth as discussed previously.
  • Sable Resources Ltd., entered into an agreement with Sprott Capital Partners LP as lead agent for a private placement financing for gross proceeds of up to CAD $5M. The offering is expected to close on or about September 10, 2020. Gross proceeds will be used for exploration and general corporate and working capital purposes (Margarita project, Chihuahua).

ON RESOURCES AND DEVELOPMENT

  • SilverCrest Metals Inc., released drill results from the Babi Vista Vein within its Las Chispas project in Sonora. This program is designed to expand and in-fill high grade mineralization to be included in the updated resource for the ongoing FS. The expanded high-grade footprint for Babi Vista is estimated at 800m along strike by an average 150m in height. The most significant results were encountered at hole BV20-60 with 635 g/t Au and 26,004 g/t Ag (73,595 g/t AgEq) over a true width (TW) of 1.3m; hole BV20-53 with 19.87 g/t Au and 2,996 g/t Ag (4,486 g/t AgEq) over a TW of 4.4m; and hole BV20-94 with 85.4 g/t Au and 4,716 g/t Ag (11,121 g/t AgEq) over a TW of 0.7m.
  • Golden Minerals Company, announced results from nine diamond holes of its in-fill resource definition drill program at its Rodeo project in Durango. Each of the first nine diamond drill holes intersected wide zones of near-surface gold mineralization, with significant drill intercepts encountered at hole RDO-20-001-M with 1.85 g/t Au and 11 g/t Ag over 45m, including 2.59 g/t Au and 13 g/t Ag over 29.44m, including 4.04 g/t Au and 20 g/t Ag over 13.23m; hole RDO-20-002 with 2.18 g/t Au and 7 g/t Ag over 35m, including 4.21 g/t Au and 5 g/t Ag over 9.9m, including 2.44 g/t Au and 2.44 g/t Au and 17 g/t Ag over 10.39m; hole RDO-20-003-M with 3.23 g/t Au and 11 g/t Ag over 40m, including 6.86 g/t Au and 16 g/t Ag over 12.95m, including 2.62 g/t Au and 15 g/t Ag over 10.85m; hole RD-20-004 with 1.27 g/t Au and 8 g/t Ag over 50m, including 3.33 g/t Au and 3 g/t Ag over 9.18m; hole RDO-20-005-M with 3.78 g/t Au and 18 g/t Ag over 40m, including 5.96 g/t Au and 20 g/t Ag over 23.4m; hole RDO-20-006 with 3.06 g/t Au and 9 g/t Ag over 30m, including 5.21 g/t Au and 10 g/t Ag over 15.5m, including 7.55 g/t Au and 11 g/t Ag over 8.11m; hole RDO-20-007 with 0.76 g/t Au and 3 g/t Ag over 50m, including 3.36 g/t Au and 7 g/t Ag over 7.2m; hole RDO-20-008 with 2.95 g/t Au and 10 g/t Ag over 40m, including 5.13 g/t Au and 15 g/t Ag over 20.5m, including 7.23 g/t Au and 24 g/t Ag over 9.6m; and hole RDO-20-009 with 1.51 g/t Au and 6 g/t Ag over 45m, including 2.67 g/t Au and 5 g/t Ag over 20.25m, including 3.32 g/t Au and 7 g/t Ag over 13.25m. Drill holes 001M, 003M and 005M were drilled with PQ drill-core to collect samples for metallurgical test work. Remaining drill holes were drilled with HQ drill-core.
  • Coeur Mining Inc., provided H1, 2020 exploration update on its Palmarejo project in Chihuahua. Exploration has been focused primarily on resource conversion and expansion drilling around the Guadalupe mine complex, and secondly on the Independencia mine complex. The company has drilled 29, 496m at a total investment of approximately $4.1M. At North Independencia, key drill results were encountered at hole VIDH-140 with 5.4 g/t Au and 236 g/t Ag over 5.3m and 21.4 g/t Au and 36 g/t Ag over 1.6m; at Northwest Independencia, hole VIDH-136 cut multiple intercepts: 4 g/t Au and 439 g/t Ag over 5.3m; 2.1 g/t Au and 293 g/t Ag over 6.6m; 1.8 g/t Au and 100 g/t Ag over 6.3m; 0.7 g/t Au and 282 g/t Ag over 3.6m; 2.9 g/t Au and 207 g/t Ag over 2.4m; and 4.8 g/t Au and 638 g/t Ag over 0.6m. At East Independencia, hole BVDH-047 intersected 1.4 g/t Au and 248 g/t Ag over 7.6m. Coeur has expanded the overall footprint in the district by mapping and sampling exposures of new veins SW and NE of the two underground mining complexes as well as new veins W and E of legacy open pit mine. It plans to continue aggressively drilling resource expansion targets in several areas during the remainder of 2020 and into 2021.
  • SilverCrest Metals Inc., provided an update on the activities developed at its Las Chispas project in Sonora in H1, 2020. The company completed 97,700m of in-fill and expansion drilling and completed approximately 2.1km of underground decline and lateral development, and stockpiled an additional 12K tonnes of mineralized material for a total stockpile of an estimated 41K tonnes at estimated diluted grade of 1Kg AgEq. SilverCrest expects to release a FS by the end of 2020.
  • Orla Mining Ltd., received from the Mexican Federal Environmental Department (“SEMARNAT”) the environmental permit required for the development of its Camino Rojo project in Zacatecas. Orla now has the two principal permits necessary for commencement of construction activities at Camino Rojo.

ON DEALS AND CORPORATE ISSUES

  • Brigadier Gold Ltd., signed a definitive agreement to acquire a 100% interest in the 3,954 ha Picachos property in Sinaloa, including the past producing San Agustin high grade Au mine. Picachos is along a large trend that host several precious metals epithermal vein systems and recently, a large porphyry copper target has been identified. To acquire 100% interest in the property, Brigadier has to make staged payments to the vendors totalling USD $275K over a 5-year period, issuance of 4M common shares of Brigadier, and cumulative exploration expenditures of USD $3,850,000. Brigadier will also make payments to the vendor for Picachos development milestones as to 1M common shares upon delineating a mineral resource estimate containing a minimum of 350K Oz Au in the inferred category, USD $725K and 1M common shares upon completion of a FS recommending the construction of a mine on the property, and USD $2M upon commencement of commercial production. In addition, Brigadier may, at its option, issue common shares, at the then current market price, subject to a minimum of $0.30 per share, in lieu of one half of the cash payments to be made pursuant to each of, and a 2% NSR will be retained by the vendor who is arm´s length to Brigadier. The company also announced the appointment of a new member to its board of directors.
  • Magna Gold Corp., entered into a definitive option agreement with a private party to acquire a 100% undivided interest in the Los Muertos property in Sonora. Los Muertos is characterized by extreme silicification, hematization, and argillic alteration, suggesting the potential for both extensive Ag-Au vein systems, and coincident, pervasive disseminated   Magna can earn a 100% undivided interest by paying an aggregate amount of USD $425K plus VAT in five annual installments commencing on the effective date of the agreement, August 3rd, 2020.
  • Silver Dollar Resources Inc., signed a definitive agreement with First Majestic to acquire up to a 100% interest in the La Joya property in Durango. The company may acquire an initial 80% interest by making staged payment totalling $1.3M over a 5-year period plus annual holding costs for the property, incurring exploration expenditures on the property of not less than $1M within 3 years, and issuing such number of common shares of the company as is equal to 19.9% of the then-issued and outstanding shares of Silver Dollar. . If Silver Dollar incurs at least $1,000,000 of exploration expenditures on the Property within three years of the date of the Definitive Agreement, First Majestic will waive the third- and fourth-anniversary cash option payments described above totalling $600,000. First Majestic will reserve a 2% NSR in all minerals produced from the property. Within 30 days after exercising its first option, Silver Dollar may exercise its second option and acquire the remaining 20% interest in the subsidiary that owns the La Joya Silver Project by delivering notice and issuing to First Majestic the number of shares as is equal to 5% of the then-issued and outstanding shares of Silver Dollar.
  • Alien Metals ltd., appointed IBK Capital Corp to assists it with the project level funding and JV process for its Donovan 2 project in Zacatecas. Its services include private placements of equity and debt instruments, with significant experience in the mining sector.
  • Avino Silver & Gold Mines Ltd., has granted the exclusive right to Gray Rock Resources Ltd., to acquire a 100% interest in the Ana Maria and Laberinto properties in Durango. In order to exercise the option, Gray Rock has to issue to Avino a total of $600k in cash or common shares: $50K in cash or shares within 30 days of the approval date; $50K in cash or common shares on or before the first anniversary of the approval date; $100K in cash or common shares on or before the second anniversary of the approval date; $200K in cash or common shares on or before the third anniversary of the approval date; $200K in cash or common shares on or before the fourth anniversary of the approval date; incur a total of $750K in exploration expenditures ($50K on or before the first anniversary of the approval date; 100K on or before the second anniversary of the approval date; and 600K on or before the fourth anniversary of the approval date). Gray Rock also granted Avino a right of first refusal on 60 days’ notice to Avino to purchase and process any ore or concentrate extracted from the properties under a custom milling contract at Avino’s mine facilities.
  • Evrim Resources Inc., reported results from its annual general meeting of shareholders, and approved the previously announced merger transaction with Renaissance Gold Inc Under the terms of the arrangement, each outstanding RenGold common share will be exchanged for 1.2448 Evrim common shares, which will result in RenGold shareholders immediately prior to the arrangement holding 50% of the issued and outstanding shares Evrim shares immediately following the arrangement.. Once the arrangement is completed, the company will change its name to Orogen Royalties Inc. (Ermitaño project, Sonora).
  • Excellon Resources Inc., announced results of its 2020 annual general meeting of shareholders, as well as the election of directors (La Platosa mine, Durango).
  • Riverside Resources Inc., completed the spin-out of shares of Capitan Mining Inc. Capitan and its shareholders will now hold 100% interest of the Au-Ag resource at the Peñoles project. Pursuant to the arrangement, holders of common shares of Riverside on August 13, 2020 will receive one new common share of Riverside and 0.2594 of a Capitan share for each common share held. The existing common shares of Riverside were delisted from the TSX Venture Exchange (TSXV) on August 13, 2020. Riverside shares commenced trading on the TSXV at the market opening on August 14, 2020.
  • Monarca Minerals Inc., closed the sale of the El Sol project in Durango to Southern Silver and appointed a new member to its board of directors. El Sol is a small mining concession of 63 ha adjacent to Southern Silver´s Cerro Minas project. The agreement is for USD $300K payable in three equal instalments on execution of a definitive agreement, twelve months and eighteen months together with retention by the Company of 2% NSR on production from the claim with a right in Southern Silver to purchase the royalty at any time for USD $1M. El Sol is a non-core asset for Monarca and net proceeds from the sell will be used to advance the company’s San Jose project in Chihuahua, Mexico and for general working capital.
  • Minera Alamos Inc., granted 600K options exercisable at a price of $0.67 to an officer of the company (Santana project, Sonora). The options will expire in five years.

ON SOCIAL RESPONSIBILITY

  • Minera Media Luna (Torex Gold), inaugurated a waste water treatment system at Cocula municipality of Guerrero. This system had an investment of MXP $6.3M and is part of the infrastructure endowment that the subsidiary mine of Torex Gold Resource planned for the relocation of said town in which 360 inhabitants live in 103 homes.
  • Grupo Mexico Foundation, donated seven assisted breathing ventilators, as well as personal protection equipment for ambulances from the Ministry of Health of Coahuila. In this way, the Ministry of Health of the Government of Coahuila guarantees high-quality advanced care, which can be offered from the place of the incident or report, to the transfer to the hospital for more personalized attention for COVID-19.
  • Personnel of Fresnillo plc, will carried out rapid tests of COVID-19 in the communities and neighborhoods near the area of operation of the mines in the Fresnillo district.

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, phyllic alteration in a porphyry Cu system in a prospect in Puebla, Mexico.  Photo by Miguel A Heredia.

The Mining and Exploration News in Mexico: Highlights on the First Week of August, 2020

197 - copiaBy Jorge Cirett

During the 32nd week of the year (August 3rd to August 9th, 2020), at least 29 press releases were announced by companies working in Mexico. To note, six of those were either opening or closing rounds of financing, and although it is difficult to assign the total amount to any given week, the announcements on this period add up to $25.56 M and C$31.9 M (dominated by Chesapeake’s $20 M and Excellon’s C$17.9 M). ON MEXICO ISSUES, First Majestic has been sued by the Tax revenue agency (SAT). The mining and metallurgical production increased 9.6% on the previous month. Alberto López Santoyo ended its functions heading the Dirección General de Minas del Estado de Sonora. ON EXPLORATION, in Sonora, Colibri Resource updated on exploration at the Evelyn property in Sonora; Canuc Resources acquired a new claim at its San Javier project. In Sinaloa, Viszla Resources released drilling results from three more holes from its Panuco project. ON MINING, Endeavour Silver, Premier Gold, Torex Gold, Great Panther and Golden Minerals presented its financial or production reports for the Q2 2020. Mexus Gold is adding equipment to its Santa Elena mine in Sonora. ON FINANCING, six companies made announcements regarding the opening or closing of financing rounds, or financing related news: Canasil Resources ($1.56 M), Excellon Resources (C$17.9 M), Chesapeake Gold ($20 M), Impact Silver (C$7 M), Redstar Gold (C$7 M), Barksdale Resources ($4 M). ON RESOURCES AND DEVELOPMENT, Pan American Silver released a new resource estimate for its La Colorada skarn deposit in Zacatecas. Sailfish Royalty updated on the Gavilanes property in Durango. GoGold released more drilling results from its Los Ricos North project in Jalisco. ON DEALS AND CORPORATE ISSUES, Minera Alamos finalized the acquisition of the Cerro de Oro project in Zacatecas. Zanzibar Gold acquired the Sonora Gold property in Sonora. Inomin Mines executed the agreement to acquire the La Gitana project in Oaxaca. Barksdale Resources signed a LOI on the San Javier copper project in Sonora. Riverside Resources released the date of the incoming spin-out of El Capitan Mining. ON SOCIAL RESPONSIBILITY. Minera Saucito was certified on safety, work and health. Newmont Peñasquito, Fresnillo PLC and Torex Gold informed on health and community help activities in Zacatecas, Guerrero and Sonora.

ON MEXICO ISSUES

  • Primero Mining (First Majestic) was sued by the SAT (Tax Agency). The company is accused of failing to fully pay for taxes by selling metals even below market prices to related parties. Another charge relates to the 2010 acquisition of the San Dimas mine in Durango, allegedly using a lower price tag than its real value. Last May the company warned it was to file a reclamation against the Mexican government on a multinational panel.
  • The Mining and Metallurgic production in Mexico fell 16.9% in May, in an annualized basis, even if presenting a 9.6% increase on the April production.
  • Gold has had an hectic week, reaching an all-time new high of $2,069 per Oz Au, while silver peaked at $28.40. The price of gold has appreciated 35% in the year, while silver is at a seven-year high.
  • Francisco Quiroga, Mining subsecretary, informed production levels in Mexico are now back to the levels before the Coronavirus pandemic emergency that shut most operations.
  • Alberto López Santoyo finalized its function as head of the Dirección General de Minas del Estado de Sonora. He had been on the post since 2015.

ON EXPLORATION

  • Viszla Resources Corp. released drilling results from the Napoleon vein corridor at the Panuco project in Sinaloa. Highlighted core-length results comprise 27.0 m @ 47 gpt Ag, 0.65 gpt Au, 0.2% Pb, 0.8% Zn; 3.5 m @ 208 gpt Ag, 1.31 gpt Au, 0.3% Pb, 2.1% Zn; 8.5 m @ 48 gpt Ag, 0.32 gpt Au, 0.4% Pb, 1.1% Zn and 4.5 m @ 495 gpt Ag, 2.52 gpt Au, 0.5% Pb, 1.1% Zn in one hole. 22.6 m @ 141 gpt Ag, 1.05 gpt Au, 0.5% Pb, 0.8% Zn (including 1.0 m @ 619 gpt Ag, 5.54 gpt Au, 2.5% Pb, 3% Zn and 5.4 m @ 267 gpt Ag, 1.63 gpt Au, 0.4% Pb, 1% Zn) in a second hole. 3.4 m @ 41 gpt Ag, 1.39 gpt Au, 0.1% Pb, 0.4% Zn.
  • Canuc Resources Corp. acquired a 151 ha mining concession that enveloped the NE of its land holdings at San Javier, Sonora. “The Company believes that there is a distinct possibility that silver-gold bearing breccia and stockwork zones can be confirmed along this trend with current exploration initiatives“.
  • Colibri Resource Corp. updated on exploration at its Evelyn project in Sonora. Recent mapping and sampling of previously unmapped areas returned up to 27.5 gpt Au. Trenching has been recommended to establish geometry and potential length of mineralization, as well as a high resolution aeromagnetic survey.

ON MINING

  • Mexus Gold US. is adding equipment to its Santa Elena mine in Sonora (Not to mistake for First Majestic’s Santa Elena mine, also in Sonora). Assays on material from Pit #1 averaged 2.1 gpt Au, with results of up to 16 gpt Au. Mexus intends to increase the size of the heap leach pad to contain up to 500 K tonnes.
  • Endeavour Silver Corp. released its financial reports for the second quarter 2020. During the period 114.1 K tonnes were processed, producing 596.5 K Oz Ag, 5,817 Oz Au (1.06 M Oz AgEq) at cash cost $2.78, AISC $14.91. At Guanaceví in Durango, higher grade El Curso, Milache and SCS orebodies had a significant positive impact on the operating performance. At Bolañitos, Guanajuato, and El Compas, Zacatecas, re-start was slower due to smaller stockpiles and less stope preparation.
  • Premier Gold Mines Ltd. Presented 2020 Q2 results. No production was reported from its Mercedes mine in Sonora, which was closed during the pandemic emergency. The company revised its mining plan, reducing production rates from 2,000 tpd to 1,200 tpd, consolidating from five mining portals to one and operating the processing plant on a campaign basis.
  • Torex Gold Resources Inc. released financial results for Q2 2020. Production at El Limón Guajes mine in Guerrero was suspended in April and partially resumed in May with the processing of low grade stockpiles. Gold production was 59,508 Oz, including 38,892 Oz in June, at cash cost $740 and AISC of $1,015 per Oz Au.
  • Great Panther Mining Ltd. Reported financial results for the second quarter of 2020. From its Topia and Guanajuato mine Complex, 23.6 K tonnes were mined and 24.5 K tonnes milled @ 325 gpt AgEq.
  • Golden Minerals Co. announced its financial results for the last quarter. The company had a revenue of $1.2 M and a net operating margin of $0.8 M on the lease of its processing plant, and received $0.9 M from an earn-in agreement with Barrick and $2.8 M form an equity offering (Rodeo, Durango).

ON FINANCING

  • Canasil Resources Inc. closed its non-brokered private placement for total gross proceeds of $1.56 M. The placement was originally for $1 M (Nora, Durango).
  • Excellon Resources Inc. closed the previously announced private placement, raising total gross proceeds of C$17.9 M. The funds will be used to repay a US$6 M bridge loan and exploration of its projects (Platosa, Durango).
  • Chesapeake Gold Corp. arranged a non-brokered private placement for gross proceeds of $20 M (Metates, Durango).
  • Impact Silver Corp. increased the previously announced private placement, aiming to gather up to C$7 M in gross proceeds (Zacualpan, Estado de México).
  • Redstar Gold Corp. announced the commencement of a non-brokered private placement to raise aggregate gross proceeds of up to C$7 M (Cumaro, La Lola and Oso Negro in Sonora).
  • Barksdale Resources Corp. intends to complete a non-brokered private placement financing for $4 M in gross proceeds (San Javier, Sonora).

ON RESOURCES AND DEVELOPMENT

  • Pan American Silver Corp. released a new mineral resource estimate for the La Colorada skarn deposit in Zacatecas. The inferred resource stands now as 100.4 M tonnes @ 44 gpt Ag, 0.20% Cu, 1.77% Pb, 4.29% Zn, containing 141 M Oz Ag, 199 K tonnes Cu, 1.8 M tonnes Pb, 4.3 M tonnes Zn. Drilling core-length highlights include 223.5 m @ 29 gpt Ag, 0.10% Cu, 1.00% Pb, 1.79% Zn; 101.3 m @ 44 gpt Ag, 0.21% Cu, 2.89% Pb, 3.92% Zn; 52.0 m @ 67 gpt Ag, 0.34% Cu, 1.37% Pb, 3.53% Zn; 83.6 m @ 23 gpt Ag, 0.27% Cu, 0.08% Pb, 4.21% Zn; 23.1 m @ 139 gpt Ag, 0.12% Cu, 3.99% Pb, 6.46% Zn; 28.2 m @ 57 gpt Ag, 0.06% Cu, 3.79% Pb, 3.18% Zn; 20.2 m @ 156 gpt Ag, 0.88% Cu, 5.99% Pb, 5.29% Zn.
  • Sailfish Royalty Corp. updated on the Gavilanes property in Durango. The Gavilanes project covers 13,594 ha in the San Dimas district in Durango, with an historical indicated resource of 953 K tonnes @ 164.6 gpt Ag, 0.09 gpt Au, 0.06% Cu, 0.42% Pb, 0.41% Zn and inferred resources of 5.4 M tonnes @ 124.6 gpt Ag, 0.12 gpt Au, nil Cu, 0.4% Pb, 0.34% Zn, holding 6.14 M Oz AgEq and 28.3 M Oz AgEq respectively.
  • GoGold Resources Inc. released results from the three first drill holes at La Trini on the Los Ricos North project in Jalisco. Highlighted core-length intercepts comprise: 43.1 m @ 0.70 gpt Au, 91 gpt Ag (including 17.8 m @ 0.89 gpt Au, 132 gpt Ag, which includes 4.0 m @ 1.92 gpt Au, 225 gpt Ag); 42.8 m @ 0.40 gpt Au, 52 gpt Ag (including 10.5 m @ 1.23 gpt Au, 56 gpt Ag); 29.8 m @ 2.41 gpt Au, 532 gpt Ag (including (4.5 m @ 12.83 gpt Au, 3,289 gpt Ag).

ON DEALS AND CORPORATE ISSUES

  • Minera Alamos Inc. finalized definitive agreements to acquire 100% interest in the Cerro de Oro gold project in Zacatecas. This deal increases the company’s land holdings in the district to 6,500 ha. Historical exploration includes 8,200 m of drilling in 76 holes and 6,000 m of trenching, with gold mineralization defined on a 500 m by 1,000 m stretch, oxidized to 70-80 m of depth, and open in multiple directions. Highlighted core–length drilling intercepts include 92 m @ 0.45 gpt Au, 70 m @ 0.75 gpt Au, 45 m @ 0.54 gpt Au, 70 m @ 0.40 gpt Au, 38 m @ 0.66 gpt Au, 30 m @ 1.29 gpt Au, 81.7 m @ 0.44 gpt Au, 38 m @ 0.44 gpt Au. Trenching results include: 75 m @ 0.67 gpt Au, 100 m @ 0.47 gpt Au, 200 m @ 0.50 gpt Au, 131 m @ 0.61 gpt Au. The deal involves the payment of $400 K and 2 M shares on closing, $300 K and 500 K shares on the first year, $400 K and 500 K shares on the second year, $800 K and 500 K shares on the third year and $1 M and 500 K shares on the fourth year. A $1 M bonus will be paid to the vendor upon the production of 50 K Oz Au.
  • Zanzibar Gold Inc. signed an option with Minerales de Tarachi for a 100% interest in the 6,000 ha Sonora Gold concessions. “Zanzibar Gold Inc. is looking forward to commencing detailed mapping and sampling exploration program on this large and very prospective property with a view to be drilling within four to five months”. The option involves payments of $50 K and 1.5 M shares on signing, $50 K and 1.5 M shares in six months, $50 K and 2 M shares in 12 months, $50 K at 18 months, $50 K and 2 M shares at 24 months, $50 K at 30 months, $150 K and 3 M shares at 36 months, $150 K at 42 months, $200 K at 48 months, $500 K at 54 months and $2.7 M at 60 months, for a total of $4 M in cash and 10 M shares. The optionor retains a 3.0% NSR of which 1% can be bought by Zanzibar for US$1 M.
  • Inomin Mines Inc. executed the agreement to acquire La Gitana and Peña Blanca projects in Oaxaca. The deal involves the payment of $25 K and the issuance of 1 M shares of Inomin, with a 1.5% NSR to Gunpoint on Peña Blanca and an existing 3.0% NSR to a third-party. Both properties are low-sulfidation epithermal systems with veins and dissemination within broad stockworks and breccias. La Gitana has a drilled zone of 500 m by 300 m with highlighted core length intercepts: 133.5 m @ 1.78 gpt Au, 101 gpt Ag; 33.0 m @ 0.64 gpt Au, 39 gpt Ag; 124.5 m @ 0.75 gpt Au, 24 gpt Ag; 145.5 m @ 0.40 gpt Au, 33 gpt Ag; 93.0 m @ 0.99 gpt Au, 19 gpt Ag; 63 m @ 1.27 gpt Au, 70 gpt Ag; 93.0 m @ 0.56 gpt Au, 20 gpt Ag; 60.0 m @ 1.20 gpt Au, 31 gpt Ag; 72.0 m @ 0.75 gpt Au, 35 gpt Ag; 28.5 m @ 1.55 gpt Au, 84 gpt Ag. At Peña Blanca, channel sampling of outcrops and trenches returned 23.5 m @ 2.26 gpt Au, 178 gpt Ag; 46 m @ 0.61 gpt Au, 7 gpt Ag; 23 m @ 0.61 gpt Au, 11 gpt Ag; 25 m @ 0.47 gpt Au, 8 gpt Ag; 3.0 m @ 5.9 gpt Au, 16 gpt Ag.
  • Barksdale Resources Corp. signed a binding letter of intent (LOI) securing an option to acquire the San Javier copper gold project in Sonora. The 1,184 ha project has 30,000 m of historic drilling by several companies with mineralization previously characterized as of IOCG type. Bakersdale intends to follow up also on structurally controlled mineralization, especially in zones of high gold grades. Some highlighted historic drill results comprise: 191.6 m @ 0.43% Cu; 54 m @ 0.75% Cu; 69 m @ 0.57% Cu; 33 m @ 1.47% Cu; 87 m @ 0.97% Cu, 0.16 gpt Au; 15 m @ 4.34% Cu, 0.94 gpt Au; 189 m @ 0.38% Cu, 0.49 gpt Au (including 63 m @ 0.35% Cu, 1.26 gpt Au which includes 9.9 m @ 0.17% Cu, 5.23 gpt Au); 42.0 m @ 0.53 % Cu, 1.09 gpt Au. The deal involves the payment of C$50 K and 4 M shares on completion, C$100 K and 2 M shares on the first year, C$150 K and 3 M shares on the third year and $200 K and 4 M shares on the sixth year. There is also an NSR of 1% when copper is below $3.50 per pound, or 2% when the price is over $3.51 per pound.
  • Riverside Resources Inc. announced the planned spin-out of the Peñoles project (Durango) to its shareholders by way of a plan of arrangement with Capitan Mining Inc. is to occur on August 14, 2020.

ON SOCIAL RESPONSIBILITY

  • Minera Saucito obtained the ISO45001 international certification on “Sistemas de gestión de la seguridad y salud ocupacional en el trabajo” by the BSI Group.
  • Newmont Peñasquito has realized 22,952 SARSCov-2 (Covid-19) fast tests since the recommencement of operations with 50% of the personnel.
  • Fresnillo PLC has been sanitizing more than 35 public spaces for more than 100 days now in Caborca, Sonora.
  • Fresnillo PLC donated two advanced mechanical respirators in Zacatecas, one to the Hospital General de Fresnillo and one to the Hospital General de Zona No.2 del Instituto Mexicano del Seguro Social (IMSS).
  • Minera Media Luna (Torex Gold) with the community of Nuevo Balsas realized several activities to improve public spaces. More than 300 persons participated in the activities that included painting streets and sidewalks, moving 50 tonnes of garbage, repairing 80 public lights and planting 200 trees.

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: Hematitized and silicified breccia in the paleo water table of a low sulfidation epithermal system in Queretaro. Picture by Jorge Cirett.

197 - copia

The Mining and Exploration News in Mexico: Highlights on the Fourth Week of July, 2020

193By Jorge Cirett

During the 30th week of the year (July 20th to July 26th, 2020), at least 37 press releases were announced by companies working in Mexico. To note, six of those were exploration updates and strikingly twelve more were related to financing. These are either opening or closing rounds, and it is difficult to assign the total amount to any given week, but the announcements on this period add up to $23.4 M and C$168.5 M (dominated by Argonaut’s C$126.5 M and Discovery’s C$35 M). Clearly there is a spike in funds flowing to mining companies, probably supported by stronger metal prices on fears of an underperforming economy and heightened global tensions. ON MEXICO ISSUES, exploration is picking up in the country after the end of the Coronavirus lockdown, with several companies performing drilling programs. Alacero warned on excessive steel importation. ON EXPLORATION, in Sonora, Carlyle Commodities commenced its field program on Cecilia. In Chihuahua, Radius updated on the geology and geochemistry of its Plata Verde project, an interesting play. In Sinaloa, Kootenay Silver released good drilling results on its Copalito project. In Durango, Mithril Resources is about to drill Coplaquín. In Guanajuato, VanGold Mining is to start an underground drilling campaign at El Pinguico. In Zacatecas, Defiance Silver resumed its field program at San Acacio. ON MINING, Premier Gold and Fresnillo PLC presented Q2 2020 reports. Premier Gold is reducing its daily output and workforce at Mercedes. Peñasquito informed on its dealing with the Coronavirus pandemic. ON FINANCING, twelve companies made announcements regarding the opening or closing of financing rounds, or financing related news: Canasil Resources ($1.25 M), Orex Minerals ($1.1 M), VanGold Mining ($2.45 M), Golden Minerals ($7.5 M), VanGold Mining ($3.8 M), Sonoro Metals (C$5 M), Monarca Minerals (C$2 M), Discovery Metals (C$35 M), Advance Gold ($725 K), Argonaut Gold (C$126.5 M), Almaden Minerals ($2 M), Peal Mexico acquired $3.85 M of Magna Gold shares. ON RESOURCES AND DEVELOPMENT, Discovery Metals released drill results from its Cordero project. Golden Tag Resources informed on strategic growth opportunities with its San Diego project in Durango. GoGold Resources released assay results from Los Ricos South project in Jalisco. GR Silver reported results from 17 historic drill holes from its Plomosas project in Sinaloa. ON DEALS AND CORPORATE ISSUES, Prime Mining completed the acquisition of the Los Reyes project in Sinaloa. Santacruz Silver sold its Zacatecas properties to Zacatecas Silver Corp.. Evrim Resources sold its La Lola and Cumaro projects to a Mexican private company for an NSR. Redstar Gold acquired all shares of Heliodor Metals, which holds the Oso Negro, La Lola and Cumaro projects in Sonora. ON SOCIAL RESPONSIBILITY. Alamos Gold Peñasquito, Grupo Mexico and Fresnillo PLC donated medical equipment to communities near its operations. A virtual immersion program for kids was held in San Luis Potosí.

ON MEXICO ISSUES

  • Exploration is picking up speed in Mexico after the end of the Coronavirus induced lockdown. Drilling programs are beginning or already underway at Cordero, Chihuahua (Discovery Metals), Pánuco in Sinaloa (Vizsla Resources), Álamos Silver in Sonora (Minaurum), Los Reyes in Sinaloa (Prime Mining), Las Minas in Veracruz (Mexican Gold), Cerro Caliche in Sonora (Sonoro Metals), Copalquín in Durango (Mithril Resources), Rodeo in Durango (Golden Minerals) and Nora in Durango (Canasil Resources).
  • Gold and silver prices are closing the week with highs not seen in several years. Gold was above $1,900 hundred an ounce by late Friday, while silver stood above $22.70 an ounce. The Coronavirus crisis, with the foreseen economic stimulus packages by several countries and the souring relations between China and the United States are seen as the reason for the continued upward trend.
  • Alacero (Asociación Latinoamericana de Acero) warned against the excessive importation of steel, in a moment when sales are just recovering.

ON EXPLORATION

  • Defiance Silver Corp. announced the resumption of its field program that includes core re-logging, surface and underground mapping, geochemistry and surface diamond drilling at its San Acacio project in Zacatecas.
  • VanGold Mining Corp. intends to initiate an underground drilling campaign to target extensions of high-grade mineralization at its Pinguico project in Guanajuato. The company also is to clear the El Pinguico shaft and sample the bottom of the backfill, with the aim to ship it to a nearby mill for processing.
  • Kootenay Silver Inc. released assay results from three more holes at its Copalito project in Sinaloa. Core length highlighted intervals comprise 56.0 m @ 58 gpt Ag (including 22 m @ 106 gpt Ag, which include 5.0 m @ 250 gpt Ag, 0.247 gpt Au); 10.3 m @ 80 gpt Ag, 0.90 gpt Au; 7.1 m @ 30 gpt Ag, 0.31 gpt Au; 13.1 m @ 347 gpt Ag, 0.22 gpt Au (including 3.2 m @ 1,297 gpt Ag, 0.28 gpt Au, which includes 1.0 m @ 2,830 gpt Ag, 0.14 gpt Au). To date 1,600 m of the 3,000 m program have been completed.
  • Radius Gold Inc. released results of recent detailed rock chip sampling and geological mapping at its Plata Verde project in Chihuahua. Multiple sub-horizontal breccia zones cemented by barite-calcite-silver chlorides, up to 75 m in diameter have been sampled in different levels, bounded by stockwork and fracture fill of massive to crustiform banded barite-calcite with silver chlorides, sulphosalts and native silver, and disseminated mineralization of sulphosalts within the volcanic host rock. The mineralization is exposed on the sides of a small creek, and covered by felsic volcanic rocks in three directions. The average silver value of 255 samples is 156 gpt Ag, while 74 samples on the breccias average 258 gpt Ag.
  • Mithril Resources Ltd. presented its quarterly activities report, in which the acquisition of Sun Minerals Pty Ltd. was completed, $5.92 M were raised and the drilling equipment moved to site at the Copalquín project in Durango. The next move is the completion of a 5,000 m diamond drilling campaign at Copalquín.
  • Carlyle Commodities Corp. mobilized crews for exploration of its Cecilia project in Sonora. “The Phase 1 exploration program has been designed to refine targeting at Cerro Magallanes which is a large rhyolite flow dome complex, host of several historic workings and multiple high-grade gold mineral occurrences”. Programmed work includes property scale mapping, a detailed structural mapping, processing and interpretation of Aster images, surface sampling and a 10 line-km induced polarization survey. Road rehabilitation and drill pad building to support a drill program on the phase 2 is also contemplated.

ON MINING

  • Premier Gold Ltd. reported production results for the second quarter of 2020. Its Mercedes mine operations in Sonora were halted at the end of March due to the Coronavirus pandemic, and a phased re-start commenced in June. An optimization plan was developed, including the consolidation of five mine portals to one, reducing the mining rate form to 2,000 to 1,200 tonnes per day and operation of the processing plant on a campaign basis, reduction of 40% of the employee base and 75% of the mining related contractors.
  • Fresnillo PLC presented its second quarter 2020 production report. During the period the company produced 13.6 M Oz Ag, 184.4 K Oz Au, 16,180 tonnes Pb, 26,726 tonnes Zn. On exploration, 135,000 m were drilled at the mines, as part of a 440,000 m program to convert resources into reserves. Additionally 39,000 m of exploration drilling was carried out as part of the 228,000 m program at projects. Interesting results were obtained at Fresnillo and Guanajuato, while negotiations continue with communities in other projects to obtain access for drilling. Fresnillo 2Q 2020 Production1
  • Minera Peñasquito informed 15,000 COVID tests have been applied since the re-commencement of activities on June 1, resulting seven positive cases during the past week and the protocol was followed to identify all persons they had contact with. The use of face masks has been agreed with the union, on all public spaces, with the exception of the dining room.

ON FINANCING

  • Peal Mexico S.A. de C.V. announced the acquisition of 11 M shares of Magna Gold Corp. under the terms of a settlement for an aggregate deemed consideration of $3.85 M in an agreement to settle an existing arbitration proceeding between the parties in relation to Magna’s San Francisco mine in Sonora. Peal now owns 16.9% of Magna’s issued and outstanding shares.
  • Canasil Resources Inc. announced a non-brokered private placement aiming to raise up to $1 M, same placement that was oversubscribed for total gross proceeds of $1.25 M (Nora, Durango).
  • Orex Minerals Inc. closed the final tranche of its non-brokered private placement for aggregate gross proceeds of $1.11 M, bringing the total aggregate proceeds to $2.1 M. (Sandra, Durango).
  • VanGold Mining Corp. has arranged a non-brokered private placement financing to raise up to $2.45 M (El Pinguico, Guanajuato).
  • Golden Minerals Co. is increasing its previously announced offering to raise up to $7.5 M in gross proceeds (Rodeo, Durango).
  • VanGold Mining Corp. expanded due to increased demand the size of its non-brokered private placement financing, for gross proceeds of $3.8 M (El Pinguico, Guanajuato).
  • Sonoro Metals Corp. is to undertake a non-brokered private placement to raise up to C$5 M in gross proceeds (Cerro Caliche, Sonora).
  • Monarca Minerals Inc. announced a non-brokered private placement to raise up to C$2 M (San Jose, Chihuahua).
  • Discovery Metals Corp. arranged a non-brokered institutional private placement to raise C$35 M, “ Eric Sprott has agreed to invest C$15,000,000 in the Private Placement,” (Cordero, Chihuahua).
  • Advance Gold Corp. announced it proposes to increase to $725 K its previously announced non-brokered private placement (Tabasqueña, Zacatecas).
  • Argonaut Gold Inc. closed its previously announced bought deal public offering for aggregate gross proceeds of C$126.5 M, thorough a syndicate of underwriters led by BMO Capital Markets (San Agustín, Durango).
  • Almaden Minerals Ltd. announced a proposed non-brokered private placement financing intended to raise up to $2 M (Ixtaca, Puebla).

ON RESOURCES AND DEVELOPMENT

  • Discovery Metals Corp. released results from eight holes at its Cordero project in Chihuahua. Highlighted core length intercepts comprise 5.3 m @ 225 gpt Ag 0.7 gpt Au, 5.1% Pb, 5.5% Zn (including 1.4 m @ 700 gpt Ag, 0.74 gpt Au, 16.1% Pb, 14.0% Zn); 4.3 m @ 365 gpt Ag, 0.55 gpt Au, 2.1% Pb, 4.0% Zn (including 1.5 m @ 489 gpt Ag, 0.82 gpt Au, 2.9% Pb, 11.1% Zn); 120.4 m @ 30 gpt Ag, 0.11 gpt Au, 0.4% Pb, 1.5% Zn; 134.6 m @ 23 gpt Ag, 0.05 gpt Au, 0.5% Pb, 1.1% Zn; 44.8 m @ 35 gpt Ag, 0.10 gpt Au, 0.7% Pb, 1.7% Zn; 0.8 m @ 1,992 gpt Ag, 0.79 gpt Au, 16.1% Pb, 14.2% Zn.
  • Golden Tag Resources Ltd. informed on strategic growth opportunities with its San Diego project in Durango. The project with 31.6 M Oz in indicated resources is fully permitted for drilling four key high priority target zones: 1849, Fernandez, Trovador and Arroyo. Drill intercepts in the Fernandez zone include 212 m @ 54 gpt Ag, 0.5% Pb, 1.3% Zn; 238 m q 64 gpt Ag, 0.8% Pb, 1.6% Zn; 257 m @ 66 gpt Ag, 0.7% Pb, 1.7% Zn; 186 m @ 53 gpt Ag, 0.5% Pb, 1.2% Zn. Mergers, strategic, corporate and project acquisitions are being evaluated, with a focus on silver.
  • GoGold Resources Inc. released the assay results from six diamond drill holes at the Los Ricos South project. Two holes were drilled at Rascadero, two at San Juan and two more at Las Lamas. Highlighted core length intersections comprise: 0 m @ 0.25 gpt Au, 59 gpt Ag; 16.7 m @ 1.32 gpt Au, 268 gpt Au (including 5.4 m @ 3.33 gpt Au, 673 gpt Ag); 21.5 m @ 0.21 gpt Au, 26 gpt Ag; 7.7 m @ 0.45 gpt Au, 65 gpt Ag; 8.9 m @ 0.8 gpt Au, 31 gpt Ag.
  • GR Silver Mining Ltd. reported high-grade results from 17 historical drill holes from the San Juan area of its Plomosas property in Sinaloa. These results define a mineralized strike length of up to 1,000 m. Some of the highlighted true width intercepts comprise: 3.8 m @ 563 gpt Ag, 0.3 gpt Au, 1.6% Pb, 2.7% Zn; 2.5 m @ 846 gpt Ag, 0.8 gpt Au, 2.7% Pb, 6.0% Zn (including 0.9 m @ 2,300 gpt Ag, 2.1 gpt Au, 7.6 % Pb, 16.3% Zn); 3.3 m @ 335 gpt Ag, 0.1 gpt Au, 0.1% Pb, 0.2% Zn; 5.6 m @ 363 gpt Ag, 0.1 gpt Au, 0.8% Pb, 1.9% Zn; 10.7 m @ 226 gpt Ag, 0.3% Pb, 0.3% Zn; 2.8 m @ 141 gpt Ag, 0.3% Pb, 0.7% Zn.

ON DEALS AND CORPORATE ISSUES

  • Prime Mining Corp. completed the acquisition of the Los Reyes project (formerly Guadalupe de Los Reyes) in Sinaloa. The company made a US$1.5 M payment to Vista Gold Inc., after which Vista no longer retains two separate 2% net smelter royalties on production from open-pit or underground mining, or a back-in right to assume a 49% non-carried interest in any underground mining. “Prime is required to pay Vista an additional US$2,100,000 through two payments of: (i) US$1,100,000 no later than six months from the Acquisition Date; and (ii) US$1,000,000 no later than twelve months from the Acquisition Date. If the Company fails to make the two payments, Vista’s net smelter royalties and back-in right will be reinstated”.
  • Santacruz Silver Mining Ltd. entered into an agreement with Zacatecas Silver Corp. for the sale of a 100% interest in the Zacatecas properties for consideration of US$1.5 M and the issuance of 5 M shares of Zacatecas Silver. The Zacatecas properties comprise 149 mining concessions totaling approximately 7,826 ha in the Fresnillo Silver Belt, and include the Panuco deposit, which has an inferred resource of 3.95 M tonnes @ 153 gpt Ag, or 19.5 M Oz Ag, remaining open along strike.
  • Evrim Resources Corp. entered into an agreement with a private Mexican company to sell two non-core exploration properties in exchange of NSR royalties. La Lola is a 6,301 ha land package that covers the La Barra fluorite vein and El Cumaro is a 620 ha claim covering a low sulfidation epithermal field. Evrim will transfer 100% interest in the La Lola and Cumaro properties in exchange for 2% and 1% NSR respectively, and a 0.5 % NSR right on 7,053 ha of the Picachos claims, should the claims be acquired by the Mexican private company. Half of the La Lola NSR can be bought for US$1.75 M and half of the El Cumaro NSR by US$1.0 M.
  • Redstar Gold Corp. entered into a binding agreement to acquire 100% of the shares of Heliodor Metals Ltd., in which Redstar has agreed to issue 86.5 M shares for 100% of the outstanding Heliodor shares. Heliodor has interest in: the Oso Negro 1,500 ha project, which has three main veins and no drilling; The La Lola 5,400 ha land package which contains the 5 km long La Barra epithermal vein (see previous entry under Evrim); Cumaro “is the downthrown block of a large low sulphidation vein field”. Redstar has agreed to conduct a C$6.0 M private placement

ON SOCIAL RESPONSIBILITY

  • Alamos Gold donated medical equipment to the Sahuaripa municipality in Sonora.
  • Peñasquito donated medical equipment to several authority bodies in Zacatecas.
  • Grupo Mexico donated protection equipment to general hospitals in Cuautla and Axochiapan in Morelos.
  • The Instituto de Metalurgia de San Luis Potosí carried out a virtual immersion program for kids.
  • Fresnillo PLC continues to provide cleaning and medical supplies in Guadalupe y Calvo (Chihuahua), Caborca (Sonora) and Fresnillo (Zacatecas).

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

On the image below: Silicified rocks signaling the paleo water table of a low sulfidation epithermal system in Queretaro. Picture by Jorge Cirett.

193