The Mining and Exploration News in Mexico: Highlights on the Third Week of January 2023

By Jorge Cirett

During the 3rd week of the year (January 16th to January 22nd, 2023), 20 companies working in Mexico released news on their properties. Two companies posted on exploration of non-advanced properties, six companies posted on Q4 2022 production figures, one released its 2023 production guidance and one announced the re-start of operations at a processing plant in Guanajuato. One company extended the maturity date of convertible debentures. Five companies informed on work at its advanced properties, including three that released drilling results and two that updated on mineral resources. One company restricted the NSR agreement on an advanced property, one informed on the acquisition of a past-producing mine and one other informed on the leasing of its processing plant for part of the profits. ON MEXICO ISSUES, no relevant news. ON EXPLORATION, In Sonora, Reyna Gold released sample results from its La Gloria project. In Jalisco, Almadex Minerals updated on exploration plans at San Pedro. ON MINING, Orla Mining, Avino Silver, Fortuna Silver, Gold Resource, Pan American Silver and First Majestic Silver presented production reports for Q4 2022. Torex Gold released its 2023 production guidance and Guanajuato Silver is to start processing at the Cata mill in Guanajuato. Capitan Mining released drill results from the Jesús María system at its Cruz de Piedra project in Durango.  ON FINANCING, Excellon Resources is to convert C$4.5 M of debentures into equity and extend the maturity of remaining principal. ON RESOURCES AND DEVELOPMENT, GR Silver released drilling results from the SE zone of the San Marcial project in Sinaloa. Regency Silver updated the resource estimate at Dios Padre in Sonora. GoGold Resources posted drilling results from El Favor deposit at its Los Ricos North project in Jalisco. Excellon Resources filed a PEA on La Negra deposit in Hidalgo. ON DEALS AND CORPORATE ISSUES, Defiance Silver restructured an option agreement to acquire the NSR at the Tepal project in Michoacan. Excellon Resources announced last week the acquisition agreement on the past-producing La Negra mine in Hidalgo. Xali Gold signed a lease for part of the profits obtained in the processing of minerals by a private company at its San Dieguito de Arriba mill in Nayarit. ON SOCIAL RESPONSIBILITY, First Majestic Silver received the “Silver Helmet Award” for underground mining with more than 500 workers for its health and safety performance.

ON MEXICO ISSUES

  • No Relevant News.

ON EXPLORATION

  • Reyna Gold Corp. released sample results from district-scale exploration at its 24,215 hectare La Goloria property in Sonora. At Las Carmelitas 43 samples average 2.25% Cu, 89 gpt Ag, 0.21 gpt Au and 0.48% Sb defining a supergene enrichment zone on conglomerate, agglomerate and sandstone with a 2.5 Km by 1.7 km footprint continuing undercover in several directions. At the Western target new parallel structures have been discovered on a 1,500 by 450 m zone with eight samples returning 2.89 to 11.35 gpt Au, up to 27 gpt Ag and 22 to 135 gpt Tellurium. At La Republicana the northwest-southeast trend has now been extended with discontinuous veins and veinlets for 2.8 km, and a width of 625 m with grades of up to 103.5 gpt Au, 283 gpt Ag, 2.4% Cu, 5.33% Pb, 0.12% Zn. “At least 3 hydrothermal events have occurred in the zone: 1) veins and veinlets of white quartz (occasionally greyish) with the presence of galena, chalcopyrite, and covellite, 2) veins and veinlets of quartz-tourmaline (cutting first event structures) coarse pyrite is observed, traces of chalcopyrite and secondary minerals such as hematite, jarosite, malachite and chrysocolla, 3) filling of calcite and iron carbonates within second event structures”. Drilling is programmed for March 2023.
  • Almadex Minerals Ltd. updated on exploration plans for its San Pedro project in Jalisco. The breccias intercepted in 2022 drilling appear to have a sub horizontal distribution. “Further surface mapping is planned to confirm and refine this interpretation in order to optimise the next drilling program. The elevated base metals and copper seen in the breccia, along with acid sulphate altered fragments suggests that the breccia and related mineralisation may be a late feature in the lithocap environment”. It is interpreted that the acid sulphate lithocap present has potential for gold mineralization, and deep copper potential beneath.

ON MINING

  • Orla Mining Ltd. provided an operational update for the fourth quarter 2022. The Camino Rojo Oxide mine produced 32,017 Oz Au during the period, and 109,596 Oz Au throughout the full year. All-in sustaining costs (AISC) has been maintained at $600 to $700 per Oz Au for the year. Production for 2023 is expected to be between 100,000 to 110,000 Oz Au. “Income taxes accrued during 2022, including Mexican Special Mining Duty, totalling approximately $35 million, will be paid in a lump sum in March 2023. Thereafter, Orla expects to pay income tax instalments monthly, beginning in May 2023”. Orla ended the year with a cash position of $96.6 M.
  • Avino Silver & Gold Mines Ltd. reported fourth quarter 2022 production results at the Avino mine in Durango. During the period 150.3 K tonnes were milled at an average grade of 70 gpt Ag, 0.62 gpt Au, 0.53% Cu, recovering 92% Ag, 81% Au, 88% Cu to produce 309.8 K Oz Ag, 2,426 Oz Au, 1.54 M Lb Cu (770 .1 K Oz AgEq). For the year 541.8 K tonnes were milled @ 62 gpt Ag, 0.42 gpt Au, 0.61% Cu, recovering 92% Ag, 78% Au, 89% Cu, to produce 985.2 K Oz Ag, 5,778 Oz Au, 6.50 M Lb Cu (2.65 M Oz AgEq). The dry-stack tailing facility was commissioned and is now fully operational.
  • Guanajuato Silver Company Ltd. announced that the Cata mill has commenced precious metals processing at the Valenciana Mines Complex (VMC) in Guanajuato. The company is to start processing material at a rate of 8 K tonnes per month and to increase it later in the year to 20 K tonnes per month. The mill has a nameplate capacity of 36 K tonnes per month. “The Company plans to operate the Cata mill with production from both VMC and the San Ignacio mine …… intends to backfill tailings underground using a hydraulic fill system that will make use of select voids and open stopes that have been created at VMC over the past 450 years of underground mining”.
  • Torex Gold Resources Inc. provided operational guidance for 2023 and 5-year production outlook for the Morelos Complex in Guerrero, which comprises the El Limón Guajes (ELG) Complex and the Media Luna project. For 2023 at ELG the expected gold production is between 440 K and 470 K Oz Au at total cash costs $740 to $780 per OZ Au and all-in sustaining costs of $1,080 to $1,130. “The strip ratio for 2023 is expected to average 10.7:1 compared to 8.9:1 in 2022 given additional laybacks within the El Limón and El Limón Sur open pits. Based on the current mine plan, a higher portion of waste is expected to be mined in the second and third quarters compared with the first and fourth quarters”. Approximately $39 M are budgeted for exploration and drilling in 2023, including $20 M for Media Luna, $6 M for ELG underground, $8 M for exploration in near mine on early exploration targets and $5 M in definition and grade control drilling. For the next five years production is expected to be in the 400 K to 500 K Oz Au per year.
  • Fortuna Silver Mines Inc. reported production results for the fourth quarter 2022, including figures from its Mexican operations. During the fourth quarter 259.5 K tonnes were milled at a rate of 2,883 tonnes per day (tpd), averaging 194 gpt Ag, 1.13 gpt Au, recovering 91.1% Ag, 89.8% Au to produce 1.47 M Oz Ag, 8,499 Oz Au. For the year, 1.03 M tonnes were milled at a rate of 2,925 tpd, averaging 191 got Ag, 1.14 gpt Au, to produce 5.76 M Oz Ag, 34,124 K Oz Au. For 2023 the company plans to process 1.03 M tonnes @ 186 gpt Ag, 1.19 gpt Au, reflecting the declining grade profile of mineral reserves.
  • Gold Resource Corp. released fourth quarter 2022 production for the Arista mine in Oaxaca. During the period 97.8 K tonnes were milled at a rate of 1,353 tonnes per day, averaging 2.68 gpt Au, 91 gpt Ag, 0.37% Cu, 2.29% Pb, 4.79% Zn to produce 6,933 Oz Au, 265.8 K Oz Ag, 284 tonnes Cu, 1,808 tonnes Pb, 3,920 tonnes Zn.
  • Pan American Silver Corp. announced preliminary production results for the Q4 2022, including figures from its Mexican operations. At La Colorada, in Zacatecas, 1.34 M Oz Ag, 700 Oz Au were produced during the period, for a yearly total of 5.93 M Oz Ag, 3,300 Oz Au. At Dolores, in Chihuahua, 0.59 M Oz Ag, 34,600 Oz Au were produced during the quarter, for a yearly production of 2.24 M Oz Ag, 136,900 Oz Au.
  • First Majestic Silver Corp. released total production results for the fourth quarter of 2022. The company’s consolidated production from its three operating mines in Mexico (San Dimas in Durango, Santa Elena in Sonora, La Encantada in Coahuila) was 2.39 M Oz Ag, 46,194 Oz Au (or 6.17 M Oz AgEq). The liquid natural gas powerplant at Santa Elena was expanded from 12 MW to 24 MW “to supply low‐cost, clean power to the Ermitaño mine and the recently completed dual‐circuit plant”. In exploration, four drilling rigs are operating at Dan Dimas, in Durango, three at Santa Elena in Sonora and one at La Encantada, in Coahuila.

ON FINANCING

  • Excellon Resources Inc. entered into a binding term sheet with holders representing approximately 66.67% of the principal “amount of outstanding convertible debentures to convert 25% of the debentures (C$4.5 M) into equity and reprice and extend maturity of remaining principal outstanding upon closing the acquisition of La Negra property in Queretaro, providing greater flexibility to the Company. Furthermore, reprice the conversion price of the remaining principal to C$0.535 per share, 6.5% interest rate or 10.0% payable in shares at the company’s election” (La Negra, Hidalgo).

ON RESOURCES AND DEVELOPMENT

  • GR Silver Mining Ltd. released surface drilling results from six holes in the Southeast Area of the San Marcial project in Sinaloa. Highlighted core-length intervals comprise 5.6 m @ 1,223 gpt Ag, 1.4% Pb, 1.2% Zn (including 0.3 m @ 25,150 gpt Ag, 30% Pb, 18.6% Zn); 82.7 m @ 121 gpt Ag (including 0.4 m @ 3,386 gpt Ag and 1.1 m @ 1,391 gpt Ag); 112.6 m @ 61 gpt Ag (including 0.9 m @ 1,055 gpt Ag); 0.6 m @ 14.3 gpt Au. “The six holes represent extensions along strike or down dip, creating the potential to expand silver mineralization boundaries”.
  • Capitan Mining Inc. released drill assays for five holes on the Jesus Maria zone at the Cruz de Piedra project in Durango. Highlighted core length intervals comprise 16.8 m @ 0.35 gpt Au, 187 gpt Ag, 0.1% Pb, 0.1% Zn (including 1.5 m @ 1.36 gpt Au, 1,381 gpt Ag, 0.8% Pb, 0.5% Zn); 4.6 m @ 0.63 gpt Au, 183 gpt Ag (including 1.5 m @ 1.45 gpt Au, 504 gpt Ag); 15.2 m @ 0.44 gpt Au, 21 gpt Ag, 0.5% Pb, 0.8% Zn (including 1.5 m @ 1.82 gpt Au, 81 gpt Ag, 3.2% Pb, 4.2% Zn). The Jesus Maria zone has been traced by trenching and drilling for 750 m of strike length to a depth of up to 150 m “On Dec 6 th, 2022, Capitan announced that it had entered into a transaction with a third party to consolidate the 2.5km high grade Jesus Maria trend”.
  • Regency Silver Corp. announced an updated resource estimate for its Dios Padre project in Sonora. The updated resource estimate incorporates 1,056 m of drilling in 8 holes drilled in 2022 and 10,425 m of historic drilling in 66 holes, to define inferred resources of 1.384 M tonnes @ 228 gpt Ag, 0.32 gpt Au (255.6 gpt AgEq) containing 10.14 M Oz Ag, 14,000 Oz Au. “The resource estimate contains information from the historic Dios Padre silver mine only and does not include any information from the recent discovery hole REG 22-01 which contained an intercept of 35.8 metres of 6.84 g/t gold, 0.88% copper and 21.82 g/t silver”.
  • GoGold Resources Inc. released the results of eight holes from El Favor East deposit within Los Ricos North project in Jalisco. Highlighted core length intervals comprise 84.5 m @ 0.24 gpt Au, 79 gpt Ag; 44.8 m @ 0.30 gpt Au, 111 gpt Ag (including 17.3 m @ 0.71 gpt Au, 225 gpt Ag); 7.8 m @ 0.45 gpt Au, 190 gpt Ag; 19.9 m @ 0.59 gpt Au, 392 gpt Ag (including 5.0 m @ 1.97 gpt Au, 1,300 gpt Ag, which includes 1.2 m @ 6.48 gpt Au, 3,722 gpt Ag); 18.3 m @ 0.21 gpt Au, 97.4 gpt Ag; 35.2 m @ 0.18 gpt Au, 130 gpt Ag. “El Favor is located approximately 800 meters along strike to the east of the El Orito deposit. The combined systems cover approximately 2.9km in mineralized strike length over a 3.7km distance”.
  • Excellon Resources Inc. filed a preliminary economical assessment on La Negra project in Queretaro. The report summarizes the mineral resource estimate with 2.46 M tonnes @ 64 gpt Ag, 1.95% Zn, 0.50% Cu, 0.27% Pb, containing 5.1 M Oz Ag, 105.8 M Lb Zn, 27.1 M Lb Cu, 14.6 M Lb Pb in indicated resources and 6.42 M tonnes @ 80 gpt Ag, 1.80% Zn, 0.40% Cu, 0.65% Pb, containing 16.5 M Oz Ag, 254.8 M Lb Zn, 56.6 M Lb Cu, 92.0 M Lb Pb as inferred resources. The PEA envisages 7.4 years of mine life processing 6.22 M tonnes averaging 63 gpt Ag, 1.5% Zn, 0.4% Cu, 0.4% Pb at a daily rate of 2,500 tonnes.

ON DEALS AND CORPORATE ISSUES

  • Defiance Silver Corp. restructured the option agreement to acquire the 2.5% NSR at the Tepal project in Michoacan with Minera Tepal S.A. de C.V. “The company is making a payment of US $100,000 to defer all payments until June 30, 2024, at which time the remaining payment schedule will resume”.
  • Excellon Resources Inc. announced on January 9, 2023 a definitive acquisition agreement with Orion Resource Partners on the acquisition of the permitted, past-producing mine of La Negra, in Queretaro. The deal involves the payment on US$50 M paid through an upfront payment in shares of Excellon totaling US$20 M upon closing of the acquisition and a further US$30 M of deferred, “contingent consideration payable in common shares of the Company or in cash at the Company’s option, following the restart of commercial production”. La Negra property counts with 2.46 M tonnes @ 64 gpt Ag, 1.95% Zn, 0.50% Cu, 0.27% Pb, containing 5.1 M Oz Ag, 105.8 M Lb Zn, 27.1 M Lb Cu, 14.6 M Lb Pb in indicated resources and 6.42 M tonnes @ 80 gpt Ag, 1.80% Zn, 0.40% Cu, 0.65% Pb, containing 16.5 M Oz Ag, 254.8 M Lb Zn, 56.6 M Lb Cu, 92.0 M Lb Pb. The current PEA envisages 7.4 years of mine life processing 6.22 M tonnes averaging 63 gpt Ag, 1.5% Zn, 0.4% Cu, 0.4% at a daily rate of 2,500 tonnes.   
  • Xali Gold Corp. signed a binding letter of intent with Minera Cinco Reales S.A. de C.V. on the San Dieguito de Arriba plant in Nayarit. Xali will have the right to receive 15% of the net profits from any mineral that is processed at the plant, or minimum payments of US$10 K in the fourth month from the signing, US$20 K on the fifth month, US$30 K on the sixth month, US$40 k on the seventh to tenth months, US$50 K from month eleven on. Before the fourth month, Xali should receive US$6.5 K on January 30th, US$6.5 K on February 27th, US$6.5 K on March 22nd. “Upon the execution of this Agreement, MCR will act as the only operator of the plant and will have the exclusive option to obtain permits and refurbish the plant and equipment to operational status and to manage and operate the SDA plant for their benefit for an initial period of 14 months …… Minera Cinco Reales operates several mines and processing plants (150 to 300 tonnes per day) in Northern and Central Mexico producing gold, silver, copper, lead and zinc”.

ON SOCIAL RESPONSIBILITY

  • First Majestic Silver was awarded the prestigious “Silver Helmet Award” in the category of “Underground Mining of More Than 500 Workers” by the Mining Chamber of Mexico for its outstanding performance in occupational safety and health on its Santa Elena operations in Sonora.

On the image below: Tectonic breccia in granitic rock sealed by fine grained darker intrusive on a copper project in the Sonoran Desert. Picture by Abraham López.

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

Drill core displaying ginguro bands

By Miguel A Heredia

During the 48th week of the year (November 28th to December 04th, 2022), at least 20 press releases were announced by companies working in Mexico, and 7 news published by the media with seven reporting resources and developments of their properties, seven commenting on Mexican issues, five disclosing deals and corporate issues, three communicating production and financial results, three announcing financing issues, one informing on exploration results, and one discussing social issues. ON MEXICO ISSUES, Altos Hornos de Mexico assured that the power outage at its plants is an act of bad faith derived from charging millions of dollars to Federal Electricity Commission (CFE) for illegal cancellation of coal supply. The Secretariat of Economy identified 159 mining companies with foreign capital operating in 26 states of Mexico (mostly juniors and exploration) in 2021. According to the Mexican Mining Chamber (CAMIMEX), Newmont, Industrias Peñoles and Fresnillo operated the main zinc mines in Mexico in 2021. Maria Luisa Albores, the Secretary of the Environment and Natural Resources (SEMARNAT) informed deputies, in a very unfortunate statement, that the federal government will not grant more authorizations for open-pit mining due to the negative impacts on the environment and human health. Grupo Mexico maintained its position as the largest copper producer in Mexico, adding a total of 1.25 B Lb Cu in 2021.  Prime Mining, Aztec Minerals, GoGold, Vizsla, and Oroco reported the best drilling intercepts in Mexico on the first week of December, 2022. ON EXPLORATION, In Sonora, Aztec Minerals reported results for the last three holes from the recently completed phase 3 drill program at its Cervantes project. ON MINING, Bear Creek reported Q3, 2022 production and financial results from its Mercedes mine in Sonora. Guanajuato Silver reported Q3, 2022 production and financial results from their Mexican operations. Orogen reported Q3 operating and financial results. ON FINANCING, SilverCrest announced that it has refinanced its USD $120M secured project financing facility (Las Chispas project, Sonora). Prime Mining announced a CAD $16.5M bought deal private placement financing, the same that later on was upsized to CAD $18.3M (Los Reyes project, Sinaloa). ON RESOURCES AND DEVELOPMENT, Barksdale reported an initial Resource Estimate at Cerro Verde within its San Javier project, Sonora.  GoGold presented results from its ongoing drilling program at its Los Ricos South property in Jalisco. Oroco released results from seven holes collared in the North Zone at its Santo Tomas project in Sinaloa. Prime Mining announced results from seven holes from its recently completed phase 2 drill program at its Los Reyes project, Sinaloa. SilverCrest announced the completion and final permanent connection to power line for its Las Chispas mine in Sonora. Starcore released its Mineral Resource Estimate and NI 43-101 compliant technical report for its El Creston project in Sonora. Vizsla announced results from seven drill holes targeting the southern extension of the Napoleon Vein at its Panuco project in Sinaloa. ON DEALS AND CORPORATE ISSUES, Canuc signed a comprehensive agreement with the Ejido of San Javier, located in the Municipality of San Javier, Sonora. First Majestic announced the proposed sale of its royalty portfolio to Metalla Royalty for a total consideration of USD $20M. Kootenay announced the appointment of Dale Brittliffe as its new VP Exploration (Columba project, Chihuahua). Riverside received USD $2.5M in cash and 2% royalty from Fresnillo plc for the sale of the Tajitos project, Sonora. ON SOCIAL RESPONSIBILITY, Ricardo Sierra Oteiza, spokesman for the mining company Esperanza Silver de Mexico, stated that gold and silver mining is an activity that has the capacity to accelerate economic processes at the local level, generating employment, encouraging local supply networks, contributing tax revenue to the treasury and contributing to the social and economic development of the communities hosting mining projects, among other benefits.

ON MEXICO ISSUE

  • Altos Hornos de Mexico S.A.B. de C.V. (AHMSA), assured that the power outage at its plants is an act of bad faith derived from charging millions of dollars to Federal Electricity Commission (CFE) for illegal cancellation of coal supply. AHMSA is owned by Mexican businessman Alonso Ancira, who assured that CFE’s actions are unjustifiable because they represented the loss of 4,000 direct jobs and more than 8,000 indirect ones, in addition to having generated disorder in the general coal industry. “These aggressive actions began after the Judiciary accepted a claim for damages for USD $700M for the unilateral and illegal cancellation of the supply of coal for the two generating plants located in Nava, Coahuila,” accused the company. “AHMSA stated that the actions taken by the management of the CFE show that it does not care about harming Coahuila and the people of Coahuila, since our plants located in that entity represent a direct source of livelihood for 17,000 Coahuila families.
  • Karen Flores, General Director of the Mining Chamber of Mexico (CAMIMEX), declared that the Federal Government stops additionally collecting up to MXP $25 B after the suspension of mining concessions and the paralysis of new permits. She explained that the policy of President Andres Manuel Lopez Obrador has halted more than 800 mining projects that only await federal authorization to start operations. “If the projects that are stopped were to start up, we would be talking about MXP $20 to 25 B per year to the federal treasury,” she said. She maintained that only in terms of taxes, the industry entered the public coffers in 2021 more than MXP $60 B and in seven years, MXP $240 B, an amount that could be higher if there were no obstacles in the current legislation.
  • The Secretariat of Economy identified 159 mining companies with foreign capital operating in 26 states of Mexico (mostly juniors and exploration) in 2021. These companies operate 1,209 projects, of which 822 were halted and nine operations reported closing at the end of last year. The mining GDP in Mexico was MXP $865.2 B in 2021, a growth of 1.6% year-on-year, in real terms (based on GDP calculated in constant MXP $ with purchasing power as of December 31, 2013). For their part, mining-metallurgical exports amounted to USD $23,579M in 2021, a figure that meant an increase of 28.1% compared to the previous year. The significant increase in exports allowed that, despite the increase that was also reported in imports, an increase in the positive balance of the mining-metallurgical trade balance of 29.6% was registered and reached a value of USD $11,904M. The positive results in foreign trade in minerals consolidated the mining-metallurgical industry as the fifth source of foreign exchange, surpassing tourism and the agricultural sector, and only behind the automotive industry, the electrical and electronic equipment and machinery industry, remittances and oil exports. The mining sector presented an increase in the contribution to the National GDP, going from 2.3% in 2020 to 2.5% in 2021, and in the Industrial GDP the record went from 8.3% to 8.6% in the study period, according to data from the Mining Chamber of Mexico. Gold remained the main product of the national mining-metallurgical industry in 2021, with a share of 28.4% in the total value of production, followed by copper with 27.7% and silver with 20.4%.
  • According to the Mexican Mining Chamber (CAMIMEX), Newmont, Industrias Peñoles and Fresnillo operated the main zinc mines in Mexico in 2021. Peñasquito, owned by Newmont and located in the state of Zacatecas, leads the ranking, with 245.84K tonnes Zn, then follow two mines of Industrias Peñoles: Velardeña, Durango with 909.68K tonnes Zn, and Tizapa State of Mexico with 40.13K tonnes Zn. The table below shows the Zn production by mine for the year 2021:

The Buenavista Zinc project, in Sonora, is located within the Buenavista facilities and includes the development of a new concentrator to produce approximately 100K tonnes Zn and 20K tonnes Cu per year.

While the project has all the necessary permits, the project budget is USD $413M and is expected to start operations in 2023. As of December 31, 2021, Grupo México had invested USD $217M in this project. When completed, Grupo México anticipates that this new facility will double the company’s zinc production capacity and provide 490 direct and 1,470 indirect jobs. Other notable companies are: Gatos Silver, Minera Frisco and Gold Resource.

  • Maria Luisa Albores, the Secretary of the Environment and Natural Resources (SEMARNAT) informed deputies, in a very unfortunate statement, that the federal government will not grant more authorizations for open-pit mining due to the negative impacts on the environment and human health. When appearing before the joint commissions for the Environment and Natural Resources, and Climate Change and Sustainability of the Chamber of Deputies, the federal official also announced that mining concessions were detected in 68 Protected Natural Areas, “which contravenes the conservation and protection of the territory and its natural resources”. Opposition legislators such as the PAN members questioned the programs of this administration such as “Sembrando Vida”, pointing out that they do not have operating rules that allow their transparency and the energy transition has been aborted, in addition, environmental deforestation is not punished.
  • Grupo Mexico maintained its position as the largest copper producer in Mexico, adding a total of 559.83K tonnes Cu in 2021. The company maintains copper production operations in Sonora, Chihuahua, San Luis Potosí and Zacatecas. With this, the company registered a coverage of 76.3% of the national copper production in 2021. The table below shows the Cu production by mine during 2021:

Prime Mining Corp., Aztec Minerals Corp., GoGold Resources Inc., Vizsla Silver Corp., and Oroco Resources Corp., reported the best drilling intercepts in Mexico on the first week of December, 2022. Details are shown in the table below:

ON EXPLORATION

  • Aztec Minerals Corp., reported results for the last three holes from the recently completed phase 3 drill program at its Cervantes project in Sonora. The most significant drill intercept was encountered in hole CAL22-031, which was collared in the California Zone with 0.87 g/t Au over 28.5m, plus 0.58 g/t Au over 85.5m, including 2.3 g/t Au over 12m. “This drill hole confirms the footwall of the main California Zone mineralization at depth and fills a large gap in the drilling pattern”.

ON MINING

  • Bear Creek Mining Corporation reported Q3, 2022 production and financial results from its Mercedes mine in Sonora. The company mined 126,420 tonnes of 2.92 g/t Au and processed 148,211 tonnes of 2.45 g/t Au with a metallurgical recovery of 95.53% to produce 11,170 Oz Au. Bear Creek sold 14,445 Oz Au at a cash and all-in-sustaining cost per Oz Au sold of USD $995 and USD $1,364 respectively at a realized price of USD $1,729 per Oz Au. The company reported revenues of USD $26.54M from the sale of gold and silver; a net loss of USD $7.7M; cash and cash equivalents and short-term investments as September 30, 2022 for USD $9.6M. Bear Creek plans to mine approximately 600K tonnes of 3.7 g/t Au to produce between 60K and 73K Oz Au in 2023.
  • Guanajuato Silver Company Ltd., reported consolidated Q3, 2022 production and financial results from their Mexican operations (El Cubo and San Ignacio mines in Guanajuato, and Topia mine in Durango). The company mined 107,379 tonnes and milled 107,009 tonnes to produce 329.3K Oz Ag, 3,226 Oz Au, 537.6K Lb Pb, and 677.1 Lb Zn (700.3K Oz AgEq) at cash and all-in-sustaining cost of USD $13.86 and USD $19.53 per Oz AgEq respectively. It sold 311.7K Oz Ag, 2,997 Oz Au, 504.4K Lb Pb, and 273.3K Lb Zn (628.3K Oz AgEq). Guanajuato Silver reported revenue of USD $8.87M; cost of sales of USD $12.2M; mine operating loss of USD $3.34M; net loss of USD $8.4M; and cash on hand of USD $6.36M.
  • Orogen Royalties Inc., reported Q3 operating and financial results. The company reported a net gain from operations of CAD $123.4K or CAD $0.001 per share; revenue of CAD $1.16M from the Ermitaño royalty with 478 attributable Oz AuEq sold at average price of USD $1,728 per Oz Au; net income of CAD $203K from prospect generation activities and recognized  an impairment of CAD $262.1K for projects that have been dropped during the period; general and administrative expenses of CAD $802.1K and a loss of CAD $468K on fair value adjustments of marketable securities due to capital markets volatility. It also reported cash flow from operating activities of CAD $188.5K; cash flow from operating activities excluding changes in non-cash working capital of CAD $10.7M including CAD $3.3M in cash and cash equivalents, and CAD $5.2M in short term investments and no long-term debt.

ON FINANCING

  • SilverCrest Metal Inc., announced that it has refinanced its USD $120M secured project financing facility, of which only USD $90M was drawn with a new USD $120M senior secured credit facility through a syndicate of lenders comprised of The Bank of Nova Scotia and Bank of Montreal (Las Chispas project, Sonora).
  • Prime Mining Corp., announced a CAD $16.5M bought deal private placement financing consisting of 11M units at a price of CAD $1.5 per unit, the same that later on was upsized to CAD $18.3M for the sale of 12.2M units at a price of CAD $1.5 per unit. Gross proceeds will be used to develop and explore its Los Reyes project in Sinaloa and for general corporate purposes.

ON RESOURCES AND DEVELOPMENT

  • Barksdale Resources Corporation reported an initial Mineral Resource Estimate (MRE) at Cerro Verde within its San Javier project, Sonora. The Resource is pit-constrained and considered a base case of USD $4/Lb copper. The table below shows the MRE effective as of October 31, 2022:

Cerro Verde remains open for expansion in most directions and the Mesa Grande and La Trinidad prospects both have historic drilling that indicates the presence of copper mineralization. Barksdale plans to initiate a Preliminary Economic Assessment (PEA) at Cerro Verde that envisions a low-strip copper heap operation to produce cathode copper on site.

  • GoGold Resources Inc., presented results from its ongoing drilling program at its Los Ricos South property in Jalisco. Highlights of the drilling include hole LRGG-22-218 with 3.98 g/t Au and 529 g/t Ag (11.04 g/t AuEq or 828 g/t AgEq) over 15m, including 12.43 g/t Au and 1,626 g/t Ag (34.1 g/t AuEq or 2,558 g/t AgEq) over 4.8m, including 20.32 g/t Au and 2,774 g/t Ag (57.31 g/t AuEq or 4,298 g/t AgEq) over 2.8m, including 37.90 g/t Au and 4,250 g/t Ag (94.57 g/t AuEq or 7,093 g/t AgEq) over 0.9m. Drilling results continue to confirm high grade wide intercepts in the Main deposit on Los Ricos South property.
  • Oroco Resource Corp., released results from seven holes collared in the North Zone at its Santo Tomas project in Sinaloa. Highlights of the drilling include hole NO32 with 0.34% Cu, 0.005% Mo, 0.021 g/t Au, and 2 g/t Ag (0.37% CuEq) over 88.7m; hole NO34 with 0.34% Cu, 0.011% Mo, 0.029 g/t Au, and 3 g/t Ag (0.40% CuEq) over 267m; hole NO35 with 0.37% Cu, 0.006% Mo, 0.042 g/t Au, and 2 g/t Ag (0.42% CuEq) over 220.5m; and hole NO36 with 0.43% Cu, 0.002% Mo, 0.092 g/t Au, and 2 g/t Ag (0.51% CuEq) over 139.6m. “The company has now completed 43 drill holes (28,119 m of drilling) in its 2021-2022 North Zone drilling confirming  good grade mineralization along 1,700 m of strike, demonstrating a westward dipping panel with consistent grades down-dip to about 400-500 m depth below the ridge, bottoming about sea level. The program is nearing completion with the remainder of the program focused on expanding the shallow seated mineralized zone on the hanging wall along the south-west side of the Gradeshell with the continued goal of increasing the resource in this newly identified zone”.
  • Prime Mining Corp., announced results from seven holes from its recently completed phase 2 drill program at its Los Reyes project, Sinaloa. Highlights of the drilling include hole 22GE-118 with 3 g/t Au and 215 g/t Ag over a true width (TW)of 5.5m, including 6.8 g/t Au and 469 g/t Ag over a TW of 1m, plus 6.8 g/t Au and 166 g/t Ag over a TW of 18.3m, including 11.6 g/t Au and 262 g/t Ag over a TW of 9.1m, plus 4.8 g/t Au and 144 g/t Ag over a TW of 2.8m, plus 2.9 g/t Au and 89 g/t Ag over a TW of 7.2m, including 9.9 g/t Au and 231 g/t Ag over a TW of 1.4m, including 2.9 g/t Au and 101 g/t Ag over a TW of 7.2m, including 7 g/t Au and 327 g/t Ag over a TW of 1.4m, plus 2 g/t Au and 72 g/t Ag over a TW of 7.4m, including 2.8 g/t Au and 90 g/t Ag over a TW of 4.4m: hole 22GE-121 with 12.8 g/t Au and 646 g/t Ag over a TW of 1.1m, plus 4.2 g/t Au and 212 g/t Ag over a TW of 12.7m, including 10.2 g/t Au and 547 g/t Ag over a TW of 0.5m, plus 10.9 g/t Au and 765 g/t Ag over a TW of 0.4m, plus 21 g/t Au and 413 g/t Ag over a TW of 0.3m; hole 22GE-122 with 2.2 g/t Au and 54 g/t Ag over a TW of 13.8m, including 9.1 g/t Au and 141 g/t Ag over a TW of 1.1m, plus 8.8 g/t Au and 289 g/t Ag over a TW of 5.6m, including 33.2 g/t Au and 1,072 g/t Ag over a TW of 1.4m; and hole 22GE-120 with 6.8 g/t Au and 207 g/t Ag over a TW of 6.8m, including 12.2 g/t Au and 337 g/t Ag over a TW of 1.5m, plus 23 g/t Au and 495 g/t Ag over a TW of 0.9m, plus 3.5 g/t Au and 75 g/t Ag over 6.7m, including 11.3 g/t Au and 245 g/t Ag over a TW of 0.8m, plus 9.9 g/t Au and 149 g/t Ag over a TW of 0.8m.
  • SilverCrest Metals Inc., announced the completion and final permanent connection of its 33 kilovolt electrical power line for its Las Chispas mine in Sonora. The company also released its inaugural Task Force for Climate Related Financial Disclosure (TCFD) report and a corresponding Water Stewardship report based on conclusions from the TCFD report.
  • Starcore International Mines Ltd., released its pit-constraint Mineral Resource Estimate and NI 43-101 compliant technical report for its El Creston project in Sonora. Measured resources as of September 30, 2022 are 56.3M tonnes of 0.076% Mo and 0.04% Cu for a total of 94.3M Lb Mo and 49.7M Lb Cu and Indicated resources of 142.2M tonnes of 0.067% Mo and 0.08% Cu for a total of 210M Lb Mo and 250.8M Lb Cu. Measured + Indicated resources are 198.5M tonnes of 0.069% Mo and 0.07% Cu for a total of 304.4M Lb Mo and 300.5M Lb Cu.
  • Vizsla Silver Corp., announced results from seven drill holes targeting the southern extension of the Napoleon Vein at its Panuco project in Sinaloa. Highlights of the drilling include hole NP-22-320 with 279 g/t Au, 24.01 g/t Au, 1.8% Pb, and 7.6% Zn (2,305 g/t AgEq) over a TW of 1.55m, including 267 g/t Ag, 29.1 g/t Au, 1.3% Pb, and 7.2% Zn (2,631 g/t AgEq) over a TW of 1.18m, plus 113 g/t Ag, 0.69 g/t Au, 0.6% Pb, and 6.2% Zn (390 g/t AgEq) over a TW of 0.8m, plus 143 g/t Ag, 0.87 g/t Au, 0.6% Pb, and 3.7% Zn (344 g/t AgEq) over a TW of 0.45m; hole NP-22-329 with 886 g/t Ag, 7.44 g/t Au, 2.2% Pb, and 6.8% Zn (1,660 g/t AgEq) over a TW of 0.88m, plus 222 g/t Ag, 2.64 g/t Au, 0.3% Pb, and 1.2% Zn (446 g/t AgEq) over a TW of 6.70m, including 668 g/t Ag, 2.22 g/t Au, 0.5% Pb, and 2.3% Zn (875 g/t AgEq) over a TW of 0.78m, including 159 g/t Ag, 9.14 g/t Au, 0.1% Pb, and 0.2% Zn (815 g/t AgEq) over a TW of 0.78m; and hole NP-22-333 with 54 g/t Ag, 1.22 g/t Au, 0.3% Pb, and 1.6% Zn (203 g/t AgEq) over a TW of 2.1m, plus 378 g/t Ag, 2.53 g/t Au, 0.4% Pb, and 4.3% Zn (696 g/t AgEq) over a TW of 1.50m.

ON DEALS AND CORPORATE ISSUES

  • Canuc Resources Corporation signed a comprehensive agreement for a period of 10 years with rights for renewal for a further 10 year period thereafter, with the Ejido of San Javier, located in the Municipality of San Javier, Sonora. The Agreement covers the Company’s 27 currently held claims and is contemplated to cover any further claims the Company may acquire in the San Javier area. The Ejido leadership at San Javier requested assistance from Canuc to implement controls against disruptive artisanal mining activities taking place locally by artisanal miners who have come to San Javier, but who are not from the area.
  • First Majestic Silver Corp., announced the proposed sale of its royalty portfolio to Metalla Royalty & Streaming Ltd for a total consideration of USD $20M in common shares of Metalla. Total consideration consists of 4,168,056 Metalla shares at a deemed price of USD $4.7984 per share based on a 25-day volume-weighted average price on the NYSE American Exchange having an aggregate value of approximately USD $20.0M. The consideration will be paid upon Closing of the Transaction.
  • Kootenay Silver Inc., announced the appointment of Dale Brittliffe as its new VP Exploration (Columba project, Chihuahua).
  • Riverside Resources Inc., received USD $2.5M in cash and 2% NSR royalty from Fresnillo plc for the sale of the Tajitos project in Sonora. Fresnillo will have, for a four-year term, the option to buy back half of the 2.0% NSR for a payment of USD $1.5M. If enacted, then Fresnillo would have an additional three years to buy back the remaining 1% NSR for another USD $1.5M. If Fresnillo does not exercise its first buy back option during the first four-year term, the Royalty will no longer be subject to any buy back provisions. The NSR covers the entire Riverside land package and a full NSR Agreement has been agreed upon and included in the signed contract between the companies. If Fresnillo wishes to reduce mineral claims, then the Company has the first right to retain those mineral tenures before they are dropped.

ON SOCIAL RESPONSIBILITY

  • Ricardo Sierra Oteiza, spokesman for the mining company Esperanza Silver de México, stated that gold and silver mining is an activity that has the capacity to accelerate economic processes at the local level, generating employment, encouraging local supply networks, contributing tax revenue to the treasury and contributing to the social and economic development of the communities hosting mining projects, among other benefits. In the case of the state of Morelos, in the community of San Agustín Tetlama in the municipality of Temixco, the company Esperanza Silver de México carries out scientific and technical prospecting and exploration studies to prepare the Environmental Impact Statement in search of the due authorizations from the federal government, so that, where appropriate, start the construction phase. If this mining project is consolidated, the Morelos community of San Agustín Tetlama would be expected to become a pole of economic and social development that joins the economic reactivation actions promoted by the government of the state of Morelos and the federal government.

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, drill core displaying ginguro texture in a banded quartz vein from an intermediate sulphidation epithermal vein system in a project in Zacatecas, Mexico.  Photo by Miguel A Heredia.

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

Fault Plane showing slickensides

By Miguel A Heredia

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

ON MEXICO ISSUE

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

ON EXPLORATION

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

ON MINING

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

ON FINANCING

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

ON RESOURCES AND DEVELOPMENT

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

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

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

ON DEALS AND CORPORATE ISSUES

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

ON SOCIAL RESPONSIBILITY

  • No relevant news.

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

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

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

Quartz vein displaying boiling texture.

By Miguel A Heredia

During the 34th week of the year (August 22nd to August 28th, 2022), at least 16 press releases were announced by companies working in Mexico, and 7 news published by the media with seven commenting on Mexican issues, four communicating production and financial results, four disclosing deals and corporate issues, three reporting resources and developments of their properties, three announcing financial issues, and two informing on exploration results. ON MEXICO ISSUES, Colibri and Oroco reported the best drilling intercepts in Mexico on the fourth week of August, 2022. The government of Mexico announced, through a decree in the Official Gazette of the Federation, the creation of the state company Litio para Mexico (LitioMx). According to the Mining Chamber of Mexico (CAMIMEX), a total of 822 mining projects remain on hold and represent an amount of USD $959M.   Jaime Gutierrez Núñez, president of CAMIMEX stated that small-scale coal mining is like “the blood diamonds” of Africa. Mexico’s mining industry plans to invest USD $5.5B in 2022, 15.2% more than in 2021. Mining in Mexico grew by 7.1% in 2021 despite friction with the government. The governor of Durango, José Rosas Aispuro, considered unfair that the mining-metallurgical sector is one of the economic sectors with the highest tax burden in the country. In Mexico there are more than 1,209 mining projects that have been developed in 26 states of the Republic.  ON EXPLORATION, In Sonora, Colibri reported results from the second half of its Phase 1 drill program completed on its Evelyn project, and Tocvan announced latest drill results from its Pilar project.  ON MINING, Guanajuato Silver, Discovery Silver, Minera Alamos, and Orogen reported Q2, 2022 production and financial results from their Mexican operations. ON FINANCING, Canasil announced a non-brokered private placement for gross proceeds of up to $550K (Nora project, Durango). Minera Alamos arranged a USD $3M working capital facility and announced a closed a USD $4.35M equity raise (Cerro de Oro project, Zacatecas). Eric Sprott announced holdings in Orex Minerals Inc. ON RESOURCES AND DEVELOPMENT, Discovery Silver reported Q2, 2022 results from its flagship Cordero project, Chihuahua.  Minera Alamos provided an update on its Cerro de Oro project, Zacatecas. Oroco successfully tested the western side of the North Zone at its Santo Tomas project in Sinaloa.  ON DEALS AND CORPORATE ISSUES, Monumental announced that its common shares are now trading on the OTCQB Venture Market under the symbol MNMRF (Jemi project, Coahuila). Argonaut announced the appointment of its Vice President, Canadian Operations (La Colorada mine, Sonora).  Aztec purchased 35% interest in the Cervantes property in Sonora from Kootenay. Colibri announced reinstatement of trading on the TSX Venture Exchange and the appointment of its CFO.  ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUE

  • Colibri Resource Corporation and Oroco Resource Corp., reported the best drilling intercepts in Mexico on the fourth week of August, 2022. Details are shown in the table below:
·        The government of Mexico announced, through a decree in the Official Gazette of the Federation, the creation of the state company Litio para Mexico (LitioMx). The Government of Mexico created LitioMx as a decentralized public organism of the Federal Public Administration and coordinated by the Ministry of Energy, with its own legal personality and assets and with technical, operational and management autonomy. The objective of LitioMx will be the exploration, exploitation, benefit and use of lithium, located in national territory, as well as the administration and control of the economic value chains of such mineral.
·        According to the Mining Chamber of Mexico (CAMIMEX), a total of 822 mining projects remain on hold and represent an amount of USD $959M, which are still waiting for better conditions to be able to reactivate. Jaime Núñez, president of CAMIMEX stated that is essential to encourage exploration since unfortunately in the last seven years we have seen a decrease in investments in exploration, leaving several projects on standby.
·        Jaime Gutierrez Núñez, president of CAMIMEX stated that small-scale coal mining is like “the blood diamonds” of Africa, and that the Federal Electricity Commission (CFE) should certify where the mineral it buys comes from and its conditions.
·        Mexico’s mining industry plans to invest USD $5.5B in 2022, 15.2% more than in 2021, but according to the Mexican Mining Chamber (CAMIMEX), it will remain below the record figure of USD $8.04B seen in 2012 amid difficult conditions. Growing security problems, a high tax burden and the government’s decision to stop granting concessions for projects have prevented investments in the sector from increasing faster, said CAMIMEX head Jaime Gutiérrez.
·        Mining in Mexico grew by 7.1% in 2021 despite friction with the government. According to CAMIMEX’s annual report, this increase positioned it as the only productive activity that recovered and even exceeded the fall of 2020, when the covid-19 pandemic initially stopped its operations because the government did not consider it “essential activity”. Even without tax incentives, the mining sector presented an increase in its contribution to the gross domestic product (GDP) going from 2.3% in 2020 to 2.5% in 2021, and an annual advance in the proportion of industrial GDP from 8.3% to 8.6% in the same period.
·        The Governor of Durango, José Rosas Aispuro, considered unfair that the mining-metallurgical sector is one of the economic sectors with the highest tax burden in the country, even though it is an enabler that prevents the migration of people in the communities where it develops its production processes, for job creation and social benefits. Mining Entrepreneurs stated that mining generates jobs and is one of the industries that pays the most taxes, since in 7 years it has contributed more than MXP $240,000M (approximately USD $12B) in taxes and other rights.
·        In Mexico there are more than 1,209 mining projects that have been developed in 26 states of the Republic, in which 406,179 jobs have been generated and a production value that already exceeds MXP $334,782M (approximately USD $16.7B). Among the main minerals extracted from these deposits are gold, copper, silver, zinc, iron, molybdenum, lead, fluorite, among others. For its exploration and exploitation, in 2021 alone, investments have been made for more than USD $4,810M and more than USD $5,538M are expected by the end of 2022. Of the 1,209 mining projects that exist in Mexico, 286 are in Sonora, Chihuahua has 160 and Durango has 128, which positions them as the entities with the greatest economic benefit thanks to mining concessions. Of the total number of projects, 749 correspond to precious metals; 180 to polymetallic minerals, 167 to copper, 71 to iron ore and the remaining 42 to other metals and minerals. According to the Mexican Mining Chamber (CAMIMEX), there are currently a total of 263 projects in the exploration stage, 76 in production, 39 in the development stage, while 822 projects are being postponed and 9 operations are reported as closed. However, the agency assures that, since the start of the current administration, the federal government has stopped granting permits or concessions for the exploration and development of new projects, since so far more than USD $959.7M dollars have not been invested. .
ON EXPLORATION
·        Colibri Resource Corporation reported results from the second half of its Phase 1 drill program completed on its Evelyn project, Sonora, and included 3,101m of RC drilling completed in 22 holes. In total, Phase 1 consisted of 6,223m of RC drilling in 42 holes.  Highlights include hole EVE22-042 with 0.17 g/t Au over 86m, including 0.32 g/t Au over 22m; hole EVE 22-043 with 0.92 g/t Au over 3m; hole EVE22-046 with 1.94 g/t Au over 2m, including 3.36 g/t Au over 1m; hole EVE22-044 with 0.63 g/t Au over 6m; hole EVE22-036 with 1.3 g/t Au over 1m; hole EVE22-033 with 1.92 g/t Au over 1m; hole EVE22-030 with 0.13 g/t Au over 87m, including 0.34 g/t Au over 8m; hole EVE22-029 with 1.39 g/t Au over 5m; and hole EVE22-028 with 0.13 g/t Au over 19m. In addition to drilling, Colibri is completing the geological mapping as well as conducting soil sampling to infill the historical property wide soil surveys.
·        Tocvan Ventures Corp., informed that seven holes were completed at its Pilar project in Sonora, totalling 1,382m and released results from the three first drill holes where the most significant drill intercepts was encountered in hole JES-22-67 with 0.4 g/t Au over 30.5m, including 7.6 g/t Au over 1.5m. Results are pending for the remaining four holes.
ON MINING
·        Guanajuato Silver Company Ltd., reported Q2, 2022 production and financial results from their El Cubo and Pinguico mines in Guanajuato (all amounts in American dollars). The company milled 94,212 tonnes to produce 155, 912 Oz Ag and 2,161 Oz Au (or 337,760 Oz AgEq) wit metallurgical recoveries of 80.91% and 82.52% respectively, at cash and all included sustaining cost (AISC) of $16.98 and $24-06 per Oz AgEq respectively. Guanajuato Silver reported revenue of $6.13M; cost of sales of $7.8M; mine operating loss of ($1.66M); net loss of ($3.5M); EBIDTA of ($1.1M); and working capital of ($2.04M). The company sold 159,840 Oz Ag, and 2,195 Oz Au (or 342, 987 Oz AgEq) at realized prices of $22.56 and $1,873 per Oz respectively.
·        Discovery Silver Corp., reported Q2, 2022 financial results (all amounts in Canadian dollars). The company reported cash and cash equivalents of $63.6M; total assets of  $101.8M; total current liabilities of $2.54M; working capital of $62.5M; and total shareholder´s equity of $99.2M.
·        Minera Alamos Inc., reported Q2, 2022 production and financial results from its Santana mine in Sonora (all amounts in Canadian dollars). The company reported that monthly mine production rates were approximately 300K tonnes, but with the opening of the Nicho Main Zone during Q2, the company is now in the position to ramp up production levels. Alamos sold 3,128 Oz Au and reported revenues of $7.3M; cost of goods sold of  $3.26M; direct cost of production of $16 per Oz; income from operations of  $2.6M; net income of $2.7M; cash and cash equivalents (including marketable securities) of  $9M; and working capital of $17M.
·        Orogen Royalties Inc., announced Q2, 2022 financial results (all amounts in Canadian dollars). The company reported revenue of $959.8K comprised from the Ermitaño royalty and $17.5K generated from prospect generation activities; project generation cost of $433.5K and recovered $448.9K in expense reimbursement from partners on optioned projects; general and administrative expenses of $875.2K; loss of $754.8K; net loss from operations of $648.6K; cash and cash equivalents from operating activities of $131.3K; cash from operating activities excluding changes in cash-cash working capital of $257.9K ; and working capital of $10.5M including $3.05M in cash and cash equivalents and $5.13M in short term investments and no long-term debt.
ON FINANCING
·        Canasil Resources Inc., announced a non-brokered private placement for gross proceeds of up to $550K. Gross proceeds will be used to fund the company´s exploration programs (Nora project, Durango).
·        Minera Alamos Inc., arranged a USD $3M working capital facility and announced a closed a USD $4.35M equity raise of common shares at $0.55/share. The combination of both enhancing the company´s working capital position as development work extends to the advancement of the Cerro de Oro project in Zacatecas.
·        Eric Sprott announced that 18,333,333 common share purchase warrants of Orex Minerals Inc., expired unexercised representing a decrease in holdings of approximately 7.2% of the outstanding common shares on a partially diluted basis since the date of the last early warning report. As a result of the warrants expiry, Mr. Sprott now beneficially owns and controls 36,666,666 shares representing approximately 19.6% of the outstanding shares on a noun-diluted basis.
ON RESOURCES AND DEVELOPMENT
·        Discovery Silver Corp., reported Q2, 2022 results from its flagship Cordero project, Chihuahua. The company reported that initial results from the Preliminary Feasibility Study (PFS) metallurgical work had recoveries of 90-95% for Ag, Pb, and Zn. It also reported that Phase 2 drilling program intercepted excellent grades below the Preliminary Economic Assessment (PEA) pit including hole C21-564 with 95 g/t Ag, 0.21 g/t Au, 1.9% Pb, and 4.5% Zn (337 g/t AgEq) over 33.9m, and hole C21-560 with 234 g/t Ag, 0.15 g/t Au, 3.8% Pb, and 6.5% Zn (606 g/t AgEq) over 18.1m, as well as hole C22-610 collared outside the current resource with 115 g/t Ag, 0.05 g/t Ag, 3.7% Pb, and 4.1% Zn (388 g/t AgEq) over 32.6m, including 187 g/t Ag, 0.05 g/t Au, 6.5% Pb, and 7.2% Zn (660 g/t AgEq) over 17.8m.
·        Minera Alamos Inc., provided an update on its Cerro de Oro project, Zacatecas. The company informed the sign off of the documentation for its Cerro de Oro project surface rights agreement in Zacatecas, allowing the company to move forward with the permitting process for the construction of its second gold operation in Mexico. Minera Alamos also informed that the NI 43-101 compliant Preliminary Economic Assessment (PEA) is nearly to be completed and is expected to get it done by next month.
·        Oroco Resource Corp., successfully tested the western side of the North Zone at its Santo Tomas project in Sinaloa by drilling 3,050m. Drilling has confirmed and expanded the 2009 Grade shell model of Cu > 0.30% derived from the historical drilling described in the Company’s 2019 Technical Report. A total of 26 holes (18,136 m of drilling) have now been completed in the North Zone, spanning 1,100m of strike length, with intersections of good grade mineralization returned in all holes for which the Company has received assays. Highlights of the last holes collared at the western side of the North Zone include hole N015 with 0.31% Cu, 0.009% Mo, 0.025 g/t Au, and 2 g/t Ag (0.36% CuEq) over 292m; hole N016 with 0.32 g/t Cu, 0.006% Mo, 0.032 g/t Au, and 2 g/t Ag (0.73% CuEq) over 95.4m, plus 0.39% Cu, 0.016%Mo, 0.022 g/t Au, and 4 g/t Ag (0.46% CuEq) over 44.7m, plus 0.26% Cu, 0.010% Mo, 0.014 g/t Au, and 2 g/t Ag (0.31% CuEq) over 88.7m; hole N017 with 0.31% Cu, 0.011% Mo, 0.02 g/t Au, and 2 g/t Ag (0.73% CuEq) over 63.8m, plus 0.22% Cu, 0.01% Mo, 0.02 g/t Au, and 1 g/t Ag (0.28% CuEq) over 159.2m; and hole N018 with 0.36% Cu, 0.011% Mo, 0.017 g/t Au, and 3 g/t Ag (0.42% CuEq) over 21m, plus 0.65% Cu, 0.012% Mo, 0.019 g/t Au, and 3 g/t Ag (0.68% CuEq) over 10m, plus 0.33% Cu, 0.012% Mo, 0.017 g/t Au, and 2 g/t Ag (0.38% CuEq) over 42.3m. The Company will commence a drill program targeted at testing the South Zone in 2022.  
ON DEALS AND CORPORATE ISSUES
·        Monumental Minerals Corp., announced that its common shares are now trading on the OTCQB Venture Market under the symbol MNMRF (Jemi project, Coahuila).
·        Argonaut Gold Inc., announced the appointment of its Vice President, Canadian Operations, effective August 29, 2022 (La Colorada mine, Sonora).
·        Aztec Minerals Corp., purchased indirectly from Kootenay Silver Inc., 35% interest in the Cervantes property in Sonora by issue 10M common shares at a price of CAD $0.25 per Aztec share for aggregate consideration of CAD $2.5M. Kootenay will retain a 0.5% Net Smelter Returned Royalty. Following the closing of the Transaction, Kootenay owns a total of 10.68M Aztec shares, which represents approximately 11.85% of the issued and outstanding Aztec shares on an undiluted basis.
·        Colibri Resource Corporation announced reinstatement of trading of its common shares on the TSX Venture Exchange. The shares will re-open for trading on the Exchange at the opening of trading on Monday, August 29. The company also announced the appointment of its new CFO (Evelyn project, Sonora).
ON SOCIAL RESPONSIBILITY
·        No relevant news.
 
Content like what you have just read can be seen at https://gambusinoprospector.com/ and at LinkedIn’s Mexico Mineral Exploration Group.

On the picture above, boiling texture in a low-intermediate epithermal vein system in a project in Durango, Mexico.  Photo by Miguel A Heredia.

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

Banded calcite vein

By Miguel A Heredia

During the 32nd week of the year (August 08th to August 14th, 2022), at least 27 press releases were announced by companies working in Mexico, and 2 news published by the media with twelve communicating production and financial results, four disclosing deals and corporate issues, three commenting on Mexican issues, three reporting resources and developments of their properties, three informing on exploration results, two announcing financing issues, and two discussing social issues. ON MEXICO ISSUES, Vizsla Silver, GR Silver, and Defiance Silver reported the best drilling intercepts in Mexico on the second week of August, 2022. According to a report from the Secretariat of Labor and Social Security, in the last three years, 979 mine inspections have been carried out throughout the country, of which 387 have been carried out in the coal zone of Sabinas, Coahuila. The General Directorate of Mines of the Ministry of Economy provisionally suspended works on 10 mining concessions in Sabinas Coahuila. ON EXPLORATION, In Coahuila, Monumental Minerals announced results of a recently satellite multispectral interpretation covering its Jemi Heavy Rare Earth Elements project. In Durango, Silver Wolf released 155 grab sample results collected during the ongoing surface sample program at its Ana Maria project which has returned some high-grade values up to 1,536 g/t Ag, 34% Pb, and 19.4% Zn. In Zacatecas, Defiance Silver provided an update on the 4,750m maiden drill program at its Lucita project, within its Zacatecas Silver property.  ON MINING, Argonaut reported Q2, 2022 production results from their Mexican mining operations. Aura provided a production guidance for 2022 on its Aranzazu mine in Zacatecas where it expects to produce between 115-120K Oz AuEq at cash cost between USD $645-690 per Oz AuEq produced.  Avino reported Q2, 2022 production and financial results from its Avino mine, Durango. Capstone reported Q2, 2022 production results from its Cozamin mine, Zacatecas. Endeavour reported Q2, 2022 production and financial results from their Guanacevi and Bolañitos mines in Durango and Guanajuato respectively. Gatos Silver reported Q2, 2022 production and financial results from its Cerro Los Gatos mine, Chihuahua. GoGold reported Q2, 2022 production and financial results from its Parral Tailings project, Chihuahua.  Golden reported Q2, 2022 production and financial results from its Rodeo mine, Durango. Orla reported Q2, 2022 production and financial results from its Camino Rojo mine, Zacatecas. SilverCrest reported Q2, 2022 production and financial results from its Las Chispas project, Sonora. Americas reported Q2, 2022 production results from its Cosala mine in Sinaloa. ON FINANCING, Advance announced a non-brokered private placement to raise gross proceeds of up to $200K (Sarape project, Sonora). Fabled informed about an extension of its non-brokered private placement (Santa Maria project, Chihuahua). Fortuna Silver reported Q2. 2022 from its San Jose mine, Oaxaca.  GoGold reported Q2, 2022 production and financial results from its Parral Tailings project, Chihuahua. Golden Minerals reported Q2, 2022 production and financial results from its Rodeo mine, Durango. ON RESOURCES AND DEVELOPMENT, GR Silver reported a new Ag discovery SE of its San Marcial Resource Area on its wholly-owned Plomosas project, Sinaloa. Pan American Silver reported Mineral Reserves and Mineral Resources as at June 30, 2022 for their Mexican properties. Vizsla released results from 26 new drill holes targeting the Tajitos-Copala resource area at its 100%-owned flagship Panuco project in Sinaloa.  ON DEALS AND CORPORATE ISSUES, Prismo announced that its common shares are now eligible for electronic clearing and settlement in the United States through the Depository Trust Company (“DTC”). Consolidated Zinc made several management changes (Plomosas mine, Chihuahua). Advance Lithium sold its royalty on three claims in Kenya to Orogen for USD $120K and the transfer of the 100% ownership of its Sarape property, Sonora. Kootenay amended the schedule on the final payment of its option agreement for 100% of the Columba high-grade silver project, Chihuahua.  ON SOCIAL RESPONSIBILITY, First Majestic released its 2021 Sustainability report. Peñoles and Fresnillo plc promote entrepreneurs.

ON MEXICO ISSUES

  • Vizsla Silver, GR Silver and Defiance Silver reported the best drilling intercepts in Mexico on the second week of August, 2022. Details are shown in the table below:
  • According to a report from the Secretariat of Labor and Social Security, in the last three years, 979 mine inspections have been carried out throughout the country, of which 387 have been carried out in the coal zone, which means that “39% of all the mining inspections that have been carried out in the coal zone of Sabinas (Sabinas, Nueva Rosita, Palau)”. In the coal region, in these three years, 27 mining operations have been closed; that is, 84% of all mine closures in the country, due to non-compliance with security measures; to date 15 remain in force. In addition, the Ministry of Economy has been informed of the existence of 12 concessions that presumably could have irregularities.
  • The General Directorate of Mines of the Ministry of Economy provisionally suspended the works on 10 mining concessions in Sabinas Coahuila, on August 11, until the employers or representatives of each of the work centers certify compliance with the measures dictated in each one of the respective files after the inspections carried out by the Ministry of Labor and Social Security (STPS). The then General Director of Mines did not proceed with the provisional suspension of the works, arguing that the STPS information on the 10 previously mentioned mining concessions did not coincide with the registry data held by the General Directorate of Mines. Considering this and other possible irregularities, the Directors of Mines and Obligations were dismissed last June with the purpose of investigating and, where appropriate, establishing the corresponding responsibilities.

ON EXPLORATION

  • Monumental Minerals Corp., announced results of a recently satellite multispectral interpretation covering its Jemi Heavy Rare Earth Elements project in Coahuila. The interpretation highlighted discreet areas that may host eudialyte-bearing dykes, veins, and disseminations. Eudialyte is a Na, Ca, Fe/Mn, Zr silicate mineral that can contain up to 10% Rare Earth Elements, and 12% ZrO2. The Aster satellite spectral data also identified several areas prospective for Cu-Zn-Pb-Ag carbonate replacement deposits.
  • Silver Wolf Exploration Ltd., released 155 grab sample results collected during the ongoing surface sample program at its Ana Maria project, Durango, which has returned some high-grade values of Ag, Pb, and Zn.  From the 155 samples collected by Silver Wolf, 30 returned values >100 g/t Ag, 73 returned > 0.5% Pb, and 59 returned > 0.5% Zn with peaks of 1,536 g/t Ag, 34% Pb, and 19.4% Zn.  These results combined with the anomalies generated in the geophysical and remote sensing surveys will provide a basis for prioritizing drill targets.
  • Defiance Silver Corp., provided an update on the 4,750m maiden drill program at its Lucita project, within its Zacatecas Silver property. Drilling has encountered multiple intercepts over 199 g/t Ag and individual high-grade silver intervals. Drilling highlights include hole DDLU-22-10 with 0.20 g/t Au and 264 g/t Ag over 3.05m, including 0.19 g/t Au and 668 g/t Ag over 0.77m, plus 0.37 g/t Au and 166 g/t Ag over 4.01m, including 0.57 g/t Au and 220 g/t Ag over 22.72m, including 1.13 g/t Au and 416 g/t Ag over 1.22m, plus 0.08 g/t Au and 235 g/t Ag over 2.25m, including 0.19 g/t Au and 737 g/t Ag over 0.53m, plus 0.03 g/t Au and 189 g/t Ag over 0.75m, plus 0.04 g/t Au and 108 g/t Ag over 0.88m; and hole  DDLU-22-13 with 0.04 g/t Au and 147 g/t Ag over 1.57m, plus 0.04 g/t Au and 150 g/t Ag over 2m, including 0.2 g/t Au and 843 g/t Ag over 0.3m, plus 0.09 g/t Au and 109 g/t Ag over 1.15m. “The inaugural drill program at Lucita central (Palenque vein system) confirmed the presence of high-grade, Fresnillo-style, low to intermediate-sulfidation epithermal silver mineralization, consisting of mainly of pyrargyrite (high-level sulfosalt) and silver sulfides that potentially indicate the higher-level setting of a zoned epithermal system. Follow-up drilling is planned for later this year at the newly discovered zones of mineralization at Palenque and Tahures”.

ON MINING

  • Argonaut Gold Inc., reported Q2, 2022 production results from their Mexican mining operations. At El Castillo mine, Durango, Argonaut mined 1,471,000 tonnes of 0.30 g/t Au to produce 12,047 Oz Au and 10,407 Oz Ag (12,178 Gold Equivalent Ounces (GEOs)), and sold 11,463 Oz Au and 11,293 Oz Ag (11,603 GEOs) at a cash cost of  USD $1,513 per Oz Au sold. At San Agustin mine, Durango, the company mined 2,954,000 tonnes of 0.29 g/t Au to produce 18,033 Oz Au and 88,160 Oz Ag (19,135 GEOs), and sold 18,656 Oz Au and 93,420 Oz Ag (19,824 GEOs) at a cash cost of USD $1,009 per Oz Au sold. At La Colorada mine, Sonora, Argonaut mined 976,000 tonnes of 0.44 g/t Au to produce 12,950 Oz Au and 35,191 Oz Ag (13,390 GEOs), and sold 13,322 Oz Au and 38,194 Oz Ag (13,799 GEOs) at a cash cost of USD $1,003 per Oz Au sold.
  • Aura Minerals Inc., provided a production guidance for 2022 on its Aranzazu mine in Zacatecas where it expects to produce between 115-120K Oz AuEq at cash cost between USD $645-690 per Oz AuEq produced.
  • Avino Silver & Gold Mines Ltd., reported Q2, 2022 production and financial results from its Avino mine, Durango. The company mined 118,224 tonnes to produce 225.5K Oz Ag, 1,350 Oz Au, and 1.64M Lb Cu (649.6K Oz AgEq), and sold 594.7K Oz AgEq at cash and AISC of USD $8.39 and USD $15.95 respectively per Oz AgEq sold. Avino reported revenues of USD $9.4M; operating income of USD $3.9M; non-cash depreciation and depletion of USD $4.4M; net income of USD $2.3M; earnings before interest, taxes, depreciation and amortization (EBIDTA) of USD $4.1M; adjusted earnings of USD $2.5M, operating cash flow (before working capital changes of USD $2.5M; and free cash flow of USD $1.5M. Cash balance reported at June 30, 2022 of USD $12.8M and working capital of USD $14.3M.
  • Capstone Copper Corp., reported Q2, 2022 production results from its Cozamin mine, Zacatecas. The company produced 14.33M Lb Cu at a cash cost of USD $1.25 per Lb Cu produced.
  • Endeavour Silver Corp., reported Q2, 2022 production and financial results from their Guanacevi and Bolañitos mines in Durango and Guanajuato respectively. At Guanacevi, Durango, Endeavour processed 94,017 tonnes to produce 1.19M payable Oz Ag and 3,680 payable Oz Au at cash cost of USD $10.35 per Oz Ag, total  production cost of USD $12.90 per Oz Ag, direct operating cost per tonne of USD $170.75, and direct cost per tonne of USD $201.84 . At Bolañitos mine, Guanajuato, the company processed 107,344 tonnes to produce 155.7K payable Oz Ag and 5,609 payable Oz Au at cash cost of USD $8.01 per Oz Ag, total production cost of USD $24.66 per Oz Ag, direct operating cost per tonne of USD $99.25, and  direct cost per tonne of USD $101.05. Consolidated results summarize 201.4K tonnes processed to produce 1.36M payable Oz Ag and 9.3K payable Oz Au (2.1M Oz AgEq) at cash cost of USD $10.18 per Oz Ag, AISC of USD $19.56 per Oz Ag, total production cost of USD $14.26 per Oz Ag, direct operating cost per tonne of USD $132.63, and direct cost per tonne of USD $148.11. The company reported revenues of USD $30.8M from 602.9K Oz Ag sold and 9.8K Oz Au sold at realized prices of USD $22.72 and USD $1,840 per Oz Ag and Oz Au respectively. It also reported a net earnings (loss) of USD $11.9M, adjusted earnings (loss) of USD $4.3M), mine operating earnings of USD $4.5M, mine operating cash flow before taxes of USD $8.8M, operating cash flow before working capital changes of USD $3.6M, and working capital of USD $149.7M.
  • Fortuna Silver Mines Inc., reported Q2. 2022 from its San Jose mine, Oaxaca. The company mined 251.9K tonnes of 187 g/t Ag and 1.13 g/t Au, both with metallurgical recoveries of 91% to produce 1.38 M Oz Ag and 8.3K Oz Au. Fortuna sold 1.42M Oz Ag and 8.6K Oz Au at realized prices of USD $22.56 and USD $1,873 per Oz Ag and Au respectively at a production cash cost per tonne of USD $83.57, production cash cost per Oz Ag Eq of USD $11 and AISC per Oz AgEq of USD $15.41.
  • Gatos Silver Inc., reported Q2, 2022 production and financial results from its Cerro Los Gatos mine, Chihuahua. The company milled 211,350 tonnes of 374 g/t Ag, 0.38 g/t Au, 2.79% Pb, and 5.03% Zn with metallurgical recoveries of 90.4%, 48.9%, 90.5%, and 66.4% respectively to produce 2.3M Oz Ag, 1.27K Oz Au, 11.8M Lb Pb, and 15.6M Lb Zn. Gatos Silver reported unaudited sales of USD $57.2M, cost of sales of USD $27.8M, royalties of USD $1M, G & A expenses of USD 3.6M, other expenses of USD $0.7M, capital expenditures of USD $20.5M, and cash balance of USD $40M as of June 30, 2022.
  • GoGold Resources Inc., reported Q2, 2022 production and financial results from its Parral Tailings project, Chihuahua. The company produced 213.5K Oz Ag, 3,081 Oz Au, and 219.5K Lb Cu at a cash and AISC of USD $13.17 and USD $17.73 per Oz AgEq respectively. GoGold reported revenues of USD $10.4M from the sale of 512.7K Oz AgEq at a realized price of USD $20.26 per Oz AgEq. It also reported cost of sales including depreciation of USD $7.9M, operating income of USD $221K, net income of USD $1.1M, free cash before working capital changes of USD $3.7M, and cash of USD $73.8M.
  • Golden Minerals Company reported Q2, 2022 production and financial results from its Rodeo mine, Durango. Golden produced 3,004 payable Oz Au and 12,768 payable Oz Ag (3,158 payable Oz AuEq) and sold 3,219 Oz AuEq at a realized price of USD $1,865 per Oz Au and USD $22.49 per Oz Ag. The total cash cost net of Ag byproduct credits was USD $1,426 per Oz AuEq. Golden reported revenues of USD $5.9M, net operating margin of USD $1.3M, cash and cash equivalent balance as of June 30, 2022 of USD $9.5M, and a net loss of 2.8M or USD $0.02 per share.
  • Orla Mining ltd., reported production and financial results from its Camino Rojo mine, Zacatecas. The company produced 25,672 Oz Au and sold 25,431 Oz Au at an average price of USD $1,872 per Oz, and cash and AISC of USD $439 and USD $601 respectively. Orla reported revenues of USD $47.8M, cost of sales-operating cost of USD $10.8M, adjusted earnings of USD $11M, cash flow from operating activities before changes in non-cash working capital of USD $20.7M, free cash flow of USD $28.7M, cash and cash equivalents as at June 30, 2022 of USD $66.7M, and a net debt of USD $100.3M.
  • SilverCrest Metals Inc., reported Q2, 2022 production and financial results from its Las Chispas project, Sonora. The company milled 12,700 tonnes of low-grade from historic stockpiles. At the end of June, 2022 it produced its first precious metal pour consisting of 312Kg of doré with approximately 2,200 Oz Ag and 100 Oz Au. SilverCrest reported cash and cash equivalents of USD $118.6M remaining under a USD $120M project financing facility, a value-added taxes (IVA) receivable in Mexico of USD $26.3M, an inventory of USD $19.4M, and mineral property, plant and equipment of USD $200M.
  • Americas Gold and Silver Corporation reported Q2, 2022 production results from its Cosala mine in Sinaloa. It produced 128K Oz Ag, 3.9M Lb Pb, and 9.9M Lb Zn. Americas provided 2022 production guidance and expect to produce between 0.7-0.9M Oz Ag, 13-15M Lb Pb, and 36-40M Lb Zn.

ON FINANCING

  • Advance Lithium Corp., announced a non-brokered private placement to raise gross proceeds of up to $200K. Gross proceeds will be used to advance its Sarape project in Sonora and for general corporate purposes.
  • Fabled Silver Gold Corp., informed about an extension of its non-brokered private placement by 30 days starting this August 8, 2022 (Santa Maria project, Chihuahua).

ON RESOURCES AND DEVELOPMENT

  • GR Silver Mining Ltd., reported a new Ag discovery SE of its San Marcial Resource Area on its wholly-owned Plomosas project, Sinaloa. Hole SMS22-10 encountered 308 g/t Ag, 0.02 g/t Au, 0.1% Pb, and 0.3% Zn over 101.6m, including 7,139 g/t Ag, 0.04 g/t Au, 1,6% Pb, and 1.3% Zn over 0.8m, plus 3,065 g/t Ag, 0.1% Pb, and 0.2% Zn over 0.3m, plus 1,774 g/t Ag, 0.01 g/t Au, 0.1% Zn over 0.20m, plus 1,508 g/t Ag, 0.1% Zn over 0.2m, plus 1,285 g/t Ag, 0.04 g/t Au, 0.1% Pb, and 0.5% Zn over 0.3m, plus 1,004 g/t Ag, 0.06 g/t Au, 0.2% Pb, and 0.3% Zn over 4.1m, plus 1,579 g/t Ag, 0.06 g/t Au, and 0.1% Zn over 0.4m, plus 1,017 g/t Ag, 0.15 g/t Au, 0.4% Pb, and 0.7% Zn over 0.3m, plus 414 g/t Ag, 0.05 g/t Au, 0.4% Pb, and 0.9% Zn over 16.2m, including 1,405 g/t Ag, 0.2 g/t Au, 0.8% Pb, and 1.9% Zn over 1.3m. “The hole was drilled 250 m to the SE of the San Marcial Resource Area, where the Company has been exploring the extension of the target contact between upper and lower volcanic units, which typically hosts the San Marcial Breccia Ag mineralization, together with strong ground magnetic anomalies delineated in 2021. This new, wide, high-grade silver discovery coincides with an inflexion in the NW-SE trending contact where it intersects with two key NE-SW trending faults. This defines a highly prospective target for continued drilling, both along strike and down dip”.
  • Pan American Silver Corp., reported Mineral Reserves and Mineral Resources as at June 30, 2022 for their Mexican properties. At La Colorada, Zacatecas the company reported proven reserves of 3.8M tonnes with average grades of 340 g/t Ag and 0.23 g/t Au for a total of 41.5M Oz Ag and 27.5K Oz Au contained, and probable reserves of 6.2M tonnes with grades of 303 g/t Ag and 0.18 g/t Au for a total of 59.9M Oz Ag and 36K Oz Au contained. The company also reported measured resources of 1.9M tonnes with grades of 216 g/t Ag and 0.14 g/t Au for a total of 13M Oz Ag and 8.2K Oz Au, indicated resources of 3.4M tonnes with grades of 191 g/t Ag and 0.17 g/t Au for a total of 20.8M Oz Ag and 18K Oz Au contained, and inferred resources of 14.9M tonnes with grades of 195 g/t Ag and 0.2 g/t Au for a total of 93.9M Oz Ag and 98.4K Oz Au contained. At Dolores, Chihuahua, probable reserves reported are 4.1M tonnes of 18 g/t Ag and 0.6 g/t Au for a total of 2.4M Oz Ag and 77.7K Oz Au contained, while inferred resources are 2.5M tonnes with grades of 29 g/t Ag and 0.92 g/t Au for  a total of 2.4M Oz Ag and 74.4K Oz Au. At La Bolsa, Sonora, Pan American reported inferred resources of 13.7M tonnes with grades of 8 g/t Ag and 0.51 g/t Au for a total of 3.3M Oz Ag and 224.8K Oz Au contained. Reported mineral resources do not include amounts identified as mineral reserves. Mineral resources that are not mineral reserves have no demonstrated economic viability.
  • Vizsla Silver Corp. released results from 26 new drill holes targeting the Tajitos-Copala resource area at its 100%-owned flagship Panuco project in Sinaloa. Drilling highlights include hole CS-22-191 with 133 g/t Ag and 0.48 g/t Au (158 g/t AgEq) over a true width (TW) of 1.39m, plus 706 g/t Ag and 4.93 g/t Au (1,011 g/t AgEq) over a TW of 12.52m, including 3,880 g/t Ag and 27.7 g/t Au (5,602 g/t AgEq) over a TW of 1.26m, plus 1,245 g/t Ag and 8.24 g/t Au (1,751 g/t AgEq) over a TW of 1.26m, plus 1,425 g/t Ag and 10.65 g/t Au (2,092 g/t AgEq) over a TW of 0.42m; hole CS-22-173 with 663 g/t Ag and 2.90 g/t Au (826 g/t AgEq) over a TW of 14.46m, including 1,375 g/t Ag and 7.19 g/t Au (1,796 g/t AgEq) over a TW of 0.78m, including 1,501 g/t Ag and 5.49 g/t Au (1,791 g/t AgEq) over a TW of 0.93m, plus 1,655 g/t Ag and 8.05 g/t Au (2,118 g/t AgEq) over a TW of 0.78m, plus 1,505 g/t Ag and 5.93 g/t Au (1,826 g/t AgEq) over a TW of 1.37m; hole CS-22-159 with 285 g/t Ag and 2.12 g/t Au (418 g/t AgEq) over a TW of 10.50m, including 493 g/t Ag and 18.3 g/t Au (1,775 g/t AgEq) over a TW of 0.56m, plus 1,025 g/t Ag and 4.61 g/t Au (1,285 g/t AgEq) over a TW of 0.71m; and hole CS-22-181 with 165 g/t Ag and 0.52 g/t Au (191 g/t AgEq) over a TW of 1.70m, plus 832 g/t Ag and 3.85 g/t Au (1,051 g/t AgEq) over a TW of 3.44m, including 1,725 g/t Ag and 11 g/t Au (2,396 g/t AgEq) over a TW of 0.68, plus 1,501 g/t Ag and 4.98 g/t Au (1,754 g/t AgEq) over a TW of 0.81m.

ON DEALS AND CORPORATE ISSUES

  • Prismo Metals Inc., announced that its common shares are now eligible for electronic clearing and settlement in the United States through the Depository Trust Company (“DTC”). It will simplify the process of trading and enhance liquidity of Prismo shares in the United States. The Company’s shares recently began trading on the OTCQB® Venture Market (“OTCQB”) under the ticker symbol PMOMF (Palos Verdes project, Sinaloa).
  • Consolidated Zinc Limited made several management changes. The company announced the retirement and replacement of its non-executive Chairman, the appointment of a new member of its Board of Directors, and the appointment of its Exploration Manager. All Board changes are effective September 1, 2022 (Plomosas mine, Chihuahua).
  • Advance Lithium Corp., sold its royalty on three claims in Kenya to Orogen Royalties Inc., for USD $120K and the transfer of the 100% ownership of the Sarape property, Sonora. Orogen will retain a 1.5% royalty on the Sarape property.
  • Kootenay Silver Inc., amended the schedule on the final payment of its option agreement for 100% of the Columba high-grade silver project, Chihuahua. The amended agreement splits the final November 2022 payment into a series of payments due in August, November, December 2022 and January, April, and May of 2023. Payments range from USD $215K (August 2022 and May 2023) to USD $480K (November 2022) and USD $430K (December 2022, January, and April 2023).

ON SOCIAL RESPONSIBILITY

  • First Majestic Silver Corp., released its 2021 Sustainability report summarizing the Company´s Environmental, Social and Governance (ESG) performance. CEO of the company stated that their effort in 2021 demonstrated their commitment to sustainability and to improving lives and communities in our host regions while increasing shareholder value, as well as driving positive changes for society and delivering long-term benefits for all First majestic shareholders.
  •  Industrias Peñoles S.A.B. de C.V., and Fresnillo plc promote entrepreneurs providing tools to micro and small entrepreneurs from the communities neighboring their operations through a training and advisory program for the strengthening and creation of proudly local and Mexican companies. Both Peñoles and Fresnillo plc have given nearly 249 workshops for entrepreneurs, with the support of the social organization ProEmpleo. In parallel, the companies and the organization work on the abilities and skills of the participants who seek the continuity of their projects and reinforce them with actions to make them competitive in their local environment. To date, more than 3,800 people have benefited and 203 new companies have been created, which in turn generated 534 direct jobs; 74% of the total number of companies created continue to operate.

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 banded calcite vein with Manganese Oxides from an intermediate sulphidation epithermal vein system in Chihuahua, Mexico.  Photo by Miguel A Heredia.

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

Hydrothermal Brecia

By Miguel A Heredia

During the 30th week of the year (July 25th to July 31st, 2022), at least 25 press releases were announced by companies working in Mexico, and 8 news published by the media with ten disclosing deals and corporate issues, six communicating production and financial results, six commenting on Mexican issues, four reporting resources and developments of their properties, three announcing financing issues, two informing on exploration results, and two discussing social issues. ON MEXICO ISSUES, Mithril Resources, Vizsla Silver, and Southern Silver reported the best drilling intercepts in Mexico on the fourth week of July, 2022. The biggest Mexican mining companies suffered a decrease in metal production between April and June of this year. Minera El Boleo´s representatives did not attend, for the second time, the meeting called by the General Directorate for Conciliation of Collective Affairs.  The mining sector in Mexico: factor of economic growth and social development. ON EXPLORATION, In Sonora, Aztec Minerals commenced a 3,000m core drilling program as a follow-up of its recent Phase 2 RC drilling program at its Cervantes project. In Sinaloa, Prismo received an extension to its environmental permit to drill its Palos Verdes project.  ON MINING, Alamos Gold reported Q2, 2022 production and financial results from its Mulatos mine in Sonora.  Agnico reported Q2, 2022 production and financial results from their Pinos Altos mine, Chihuahua and La India mine, Sonora. Starcore reported year end 2022 production and financial results for its San Martin mine, Queretaro. Mag Silver-Fresnillo plc JV reported Q2, 2022 production results from its Juanicipio project, Zacatecas. Sierra Metals reported Q2, 2022 production results from their Bolivar and Cusi mines in Chihuahua.  ON FINANCING, Silver Spruce announced the first closing of a private placement for gross proceed of up to $117,250 (El Mezquite project, Sonora). Bear Creek entered into a USD $5M loan facility with Auramet (Mercedes mine, Sonora). Elemental Royalties announced that its 1% Net Smelting Return (NSR) royalty on the Mercedes mine, Sonora is now payable.  ON RESOURCES AND DEVELOPMENT, Osisko Development filed a technical report to present and support the results of the Mineral Resource Estimate for its San Antonio Gold project, Sonora. Southern Silver released results from the ongoing drilling program at its Cerro Las Minitas project, Durango. Vizsla released results from nine holes targeting the southern extension of the Napoleon Vein at its Panuco project, Sinaloa. Mithril released results from its ongoing drill program on the western end of its El Refugio resource area at its Copalquin project, Durango.  ON DEALS AND CORPORATE ISSUES, Monumental announced that its common shares are now eligible for electronic clearing and settlement in the United States through the Depository Trust Company (DTC) (Jemi project, Coahuila). Orogen acquired royalties in the Sarape property in Sonora by paying USD $120K to Advance Lithium Corp. Aura Minerals announced the appointment of a new member to its Board of Directors (Aranzazu mine, Zacatecas). Aztec Minerals became 100% owner of the Cervantes project in Sonora.  Azure completed the sale of its Mexican assets to Bendito Resources. Sierra Madre announced the appointment of its new CFO (La Tigra project, Nayarit).  Prismo began trading on the OTCQB under the symbol PMOMF (Palos Verdes project, Sinaloa). Colibri announced that it has filed audited and unaudited financial statements, management discussions and analyses, and officer certifications on the System for Electronic Document Analysis and Retrieval (SEDAR) (Evelyn project, Sonora). Excellon announced the appointment of its Chief Legal Officer & VP, Corporate Affairs (La Platosa mine, Durango). ON SOCIAL RESPONSIBILITY, Fresnillo plc donated two garbage trucks to the Municipality of Fresnillo, Zacatecas. Grupo Mexico announced an investment of MXP $38,000M (about USD $1.9 B) to expand its mining operations that will generate 11,000 jobs in the next five years in Sonora state.

ON MEXICO ISSUE

  • Mithril Resources, Vizsla Silver, and Southern Silver reported the best drilling intercepts in Mexico on the fourth week of July, 2022. Details are shown in the table below:
  • The biggest Mexican mining companies suffered a decrease in metal production between April and June of this year, so their results were under pressure in the second quarter of the year, so their results were under pressure in the second quarter of the year. The Grupo México consortium reported that its net profit fell 45.9%, due to lower copper production, the reduction in the price of said metal, as well as higher costs due to inflation. After the results were announced, the shares of the mining company fell 0.67% on the Mexican Stock Exchange (BMV), closing at 75.32 each.  Fresnillo plc reported that its gold production fell 20.6% in a year-on-year comparison, totaling 158,960 Oz Au from April to June against 200,163 Oz in 2021. In addition, it produced 13.66M Oz Ag in the quarter, a 3% annual reduction compared to 14.09M Oz in the same period of 2021.
  • Minera El Boleo´s representatives did not attend, for the second time, the meeting called by the General Directorate for Conciliation of Collective Affairs. The Delegate in Baja California Sur of the Mining Union described as a lack of respect and a company neglect of the federal government, and announced that the parties are summoned by the Federal Labor Court on Monday, August 1 at 1:00 p.m., to a meeting where the union will expose some modifications to the demands for which the strike broke out and continues. The strike has left more than a thousand basic employees without work and has caused a collapse in the economy of Santa Rosalía, with effects on the rest of the municipality where hundreds of micro, small and medium-sized entrepreneurs depend directly or indirectly on the economic income produced by this company with Korean capital, which is dedicated to the exploitation of copper and other minerals.
  • The mining sector in Mexico: factor of economic growth and social development. The Ministry of Economy of the federal government reports that in 2021, the mining sector in Mexico registered an increase of 16% in the investment received compared to 2020, amounting to USD $4,246M, a situation that confirms that this sector continues to remain one of the productive branches that attracts the most investment to the country. In 2021, mining contributed 3.06% to the National Gross Domestic Product (GDP) and 9.62% to the Industrial GDP.

ON EXPLORATION

  • Aztec Minerals Corp., commenced a 3,000m core drilling program as a follow-up of its successful recent phase 2 RC drilling program conducted at its Cervantes project, Sonora. The follow-up drill program will test California, California Norte and Jasper targets “to better define the open pit, heap leach gold potential of the porphyry gold oxide cap at California, evaluate the potential for deeper copper-gold porphyry sulfide mineralization underlying the oxide cap, test for northern extensions of the California mineralization at California North and northwestern extensions of the Jasper mineralization”.
  • Prismo Metals Inc., received an extension to its environmental permit to drill its Palos Verdes project in Sinaloa. This extension allows Prismo to drill on existing roads. The Secretariat of Environment and Natural Resources (SEMARNAT) is also reviewing an additional application for a permit for new road construction. The company plans to commence the drilling program in the first week of June.

ON MINING

  • Alamos Gold Inc., reported Q2, 2022 production and financial results from its Mulatos mine in Sonora. The company produced 20,200 Oz Au and sold 18,705 Oz Au, reporting total cash cost and an all included sustaining cost (AISC) of $1,566 and $1,636 respectively per Oz Au sold. Alamos reported operating revenues of $$35.1M, and capital expenditure of $21.3M. It also provided 2022 guidance and expects to produce between 130K-145K Oz Au at cash and AISC of $1,225-$1,275 and $1,325-1,375 respectively per Oz Au sold.
  • Agnico Eagle Mines Limited reported Q2, 2022 production and financial results from their Pinos Altos mine, Chihuahua and La India mine, Sonora. At Pinos Altos mine, Chihuahua, Agnico processed 366K tonnes of 2.02 g/t Au to produce 23K Oz Au, at a production cost of USD $109 per tonne; a production cost of USD $1,732 per Oz Au produced; and a total cash cost of USD $1,383 per Oz Au produced. At La India mine, Sonora, the company processed 1,358,000 tonnes of 0.52 g/t Au to produce 20K Oz Au at a production cost of USD $13 per tonne; a production cost of USD $872 per Oz Au produced; and a total cash cost of USD $936 per Oz Au produced.
  • Starcore International Mines Ltd., reported year end 2022 production and financial results for its San Martin mine, Queretaro. The company milled 55,400 tons of 1.58 g/t Au and 23 g/t Ag with metallurgical recoveries of 88.2% and 51.4% respectively, to produce 10K Oz Au and 85.4K Oz Ag (11.2K Oz AuEq) at a mine operating cash cost of USD $62 per tonne milled, and  mine operating cash cost of USD $1,239 per Oz AuEq. Starcore reported cash on hands of USD $8.8M; working capital of USD $9.1M; Au and Ag sales of USD $25.7M; earning from mining operations of USD $5.3M; net income of USD $2.4M; and EBITDA of USD $4.8M.
  • Excellon Resources Inc., reported Q2, 2022 production and financial results from its La Platosa mine, Durango. The company mined 21,481 tonnes and processed 23,550 tonnes of 449 g/t Ag, 4.2% Pb, and 4.7% Zn with metallurgical recoveries of 90.4%, 75.5%, and 86% respectively, to produce 307.5K Oz Ag, 1.65M Lb Pb, and 2.1M Lb Zn, and a total of 260.7K Oz Ag payable, 1.4M Lb Pb payable, and 1.62M Lb Zn payable.   Excellon reported revenue of USD $7.8M; a production cost of USD 244 per tonne; a total cash cost net of by-products of USD $13.81 per Oz Ag payable; All in sustaining cost (AISC) of USD $19.24 per Oz Ag payable; and a net working capital of USD $0.1M with a cash marketable securities of USD $2.9M.
  • Mag Silver Corp., -Fresnillo plc JV reported Q2, 2022 production results from its Juanicipio project, Zacatecas. On Q2, 2022, a total of 154,069 tonnes were processed with grades of 567 g/t Ag  to produce 2.37M Oz Ag and 5,5K Oz Au of which 1.04M Oz Ag and 2.5K Oz Au are attributable to Mag due to its 44% ownership on the Juanicipio project.
  • Sierra Metals Inc reported Q2, 2022 production results from their Bolivar and Cusi mines in Chihuahua. At Bolivar mine, Chihuahua, the company processed 256,372 tonnes of 0.63% Cu, 12 g/t Ag, and 0.24 g/t Au with metallurgical recoveries of 90.61%, 80.99%, and 65.93% respectively, to produce 3.2M Lb Cu, 83K Oz Ag and 1,283 Oz Au (4.2M Lb CuEq). At Cusi mine, Chihuahua, Sierra Metals processed 66,772 tonnes of 146 g/t Ag, 0.17 g/t Au, and 0.23% Pb with metallurgical recoveries of 82.07%, 43.64%, and 80.78% respectively, to produce 258K Oz Ag, 160 Oz Au, and 273K Lb Pb (283K Oz AgEq).

ON FINANCING

  • Silver Spruce Resources Inc., announced the first closing of a private placement for gross proceed of up to $117,250. The company plans to complete second a final closing of the private placement by August 18, 2022 (El Mezquite project, Sonora).
  • Bear Creek Mining Corporation entered into a USD $5M loan facility with Auramet (Mercedes mine, Sonora). Part of the proceeds will be used to fast-track production improvements at its recently acquired Mercedes mine in Sonora.
  • Elemental Royalties Corp., announced that its 1% Net Smelting Return (NSR) royalty on the Mercedes mine, Sonora is now payable. Elemental acquired a 1% NSR royalty on the Mercedes gold-silver mine in July 2018, payable from the earlier of either a production threshold or July 28, 2022.

ON RESOURCES AND DEVELOPMENT

  • Osisko Development Corp., filed a technical report to present and support the results of the Mineral Resource Estimate at June 30, 2022 for its San Antonio Gold project, Sonora. The company reported indicated resources of 14.9M tonnes with grades of 1.2 g/t Au and 3 g/t Ag for 576K Oz Au and 1.37M Oz Ag contained, and inferred resources of 16.6M Oz Au with grades of 1.02 g/t Au and 3 g/t Ag for 544K Oz Au and 1.76M Oz Ag contained.
  • Southern Silver Exploration Corp., released results from the ongoing drilling program at its Cerro Las Minitas project, Durango. Drilling highlights include hole 21CLM-191 with 123 g/t Ag, 0.8% Cu, 0.4% Pb, and 0.6% Zn (251 g/t AgEq or 6.4% ZnEq) over a true width (TW) of 4.7m, including 848 g/t Ag, 5.6% Cu, 0.7% Pb, and 2.6% Zn (1,596 g/t AgEq or 40.5% Zn Eq) over a TW of 0.4m, and 77 g/t Ag, 4.4% Cu, 0.2% Pb, and 0.9% Zn (617 g/t AgEq or 15.6% Zn Eq) over a TW of 2.6m, including 165 g/t Ag, 0.1 g/t Au, 11.5% Cu, 0.1% Pb, and 0.4% Zn (1,463 g/t AgEq or 37.1% Zn Eq) over a TW of 1m; hole 22CLM-188 with 307 g/t Ag, 1 g/t Au, 0.5% Cu, 0.2% Pb, and 0.7% Zn (481 g/t AgEq or 12.2% Zn Eq) over a TW of 0.3m, and 128 g/t Ag, 0.8% Pb, and 1,1% Zn (202 g/t AgEq or 5.1% Zn Eq) over a TW of 12.7m, including 352 g/t Ag, 0.1% Cu, 2.4% Pb, and 1.6% Zn (500 g/t AgEq or 12.7% Zn Eq) over a TW of 4.8m, including 675 g/t Ag, 0.3% Cu, 5.5% Pb, and 3.4% Zn (1,008 g/t AgEq or 25.6% Zn Eq) over a TW of 1.3m; and hole 22CLM-187 with 98 g/t Ag, 0.1% Cu, 1% Pb, and 0.1% Zn (145 g/t AgEq or 3.7% Zn Eq) over a TW of 1.7m, plus 162 g/t Ag, 0.6 g/t Au, 0.3% Cu, 1.5% Pb, and 0.6% Zn (314 g/t AgEq or 8% Zn Eq) over a TW of 1.9m, including 499 g/t Ag, 0.1 g/t Au, 0.4% Cu, 4.6% Pb, and 1.5% Zn (759 g/t AgEq or 19.2% Zn Eq) over a TW of 0.6m, and 9 g/t Ag, 1.2 g/t Au, 0.2% Cu, 0.1% Zn (134 g/t AgEq or 3.4% Zn Eq) over a TW of 2m. These results continue to extend the silver-polymetallic mineralization laterally to the east and west in the North Felsite target on the Cerro Las Minitas project, Durango.
  • Vizsla Silver Corp., released results from nine holes targeting the southern extension of the Napoleon Vein at its Panuco project, Sinaloa. Drilling highlights include hole NP-22-300 with 913 g/t Ag, 5.28 g/t Au, 0.1% Pb, and 0.2% Zn (1,241 g/t AgEq) over a true width (TW) of 3.90m, including 1,385 g/t Ag, 6.62 g/t Au, 0.1% Pb, and 0.1% Zn (1,772 g/t AgEq) over a TW of 0.83m, including 1,750 g/t Ag, 13.75 g/t Au, 0.2% Pb, and 0.5% Zn (2,641 g/t AgEq) over a TW of 0.5m; hole NP-22-295 with 682 g/t Ag, 3.62 g/t Au, 0.7% Pb, and 2.2% Zn (990 g/t AgEq) over a TW of 1.7m, and 493 g/t Ag, 3.15 g/t Au, 0.8% Pb, and 3% Zn (813 g/t AgEq) over a TW of 1.41m; and hole NP-22-291 with 283 g/t Ag, 1.08 g/t Au, 0.6% Pb, and 4.5% Zn (517 g/t AgEq) over a TW of 1.48m, and 484 g/t Ag, 0.46 g/t Au, 0.1% Pb, and 0.9% Zn (518 g/t AgEq) over a TW of 1.18m. These results demonstrate the continuity of high-grade silver and gold mineralization along the southern extent of the main Napoleon Vein.
  • Mithril Resources Ltd., released results from its ongoing drill program on the western end of its El Refugio resource area at its Copalquin project, Durango. Significant drill intercepts were encountered in holes CDH-140 with 15.73 g/t Au and 474 g/t Ag (22.5 g/t AuEq) over 5.83m, including 45.5 g/t Au and 1,387 g/t Ag (66.73 g/t AuEq) over 1.81m; and hole CDH-141 with 1.35 g/t Au and 48 g/t Ag (2.03 g/t AuEq) over 4m, and 2.54 g/t Au and 24 g/t Ag (2.88 g/t AuEq) over 5.49m, and 1.67 g/t Au and 55 g/t Ag (2.45 g/t AuEq) over 1.8m.

ON DEALS AND CORPORATE ISSUES

  • Monumental Minerals Corp., announced that its common shares are now eligible for electronic clearing and settlement in the United States through the Depository Trust Company (DTC). The Company’s shares will now trade under the symbol “MNMRF” (Jemi project, Coahuila).
  • Orogen Royalties Inc., acquired royalties in the Sarape property in Sonora by paying USD $120K to Advance Lithium Corp. Orogen will retain 1.5% net smelter return royalty on the Sarape project.
  • Aura Minerals Inc., announced the appointment of a new member to its Board of Directors (Aranzazu mine, Zacatecas).
  • Aztec Minerals Corp., became 100% owner of the Cervantes project in Sonora by acquiring Kootenay Silver Corp´s 35% interest in the JV company that holds the Cervantes property. As consideration for the acquisition, Aztec will issue to Kootenay 10M common shares in the capital of Aztec, at a price of CAD $0.25 per share, and Kootenay  will retain a 0.5% Net Smelter Return Royalty.
  • Azure Minerals Limited completed the sale of its Mexican assets to Bendito Resources Inc, for a combination of cash and shares valued at A $20M.
  • Sierra Madre Gold and Silver Ltd., announced the appointment of its new CFO (La Tigra project, Nayarit).
  • Prismo Metals Inc., announced that its common shares have been approved for listing on the OTCQB. It will begin trading under the symbol PMOMF (Palos Verdes project, Sinaloa).
  • Colibri Resource Corporation announced that it has filed audited financial statements for the period ending December 31, 2021; unaudited quarterly financial statements for the three months period ending March 31, 2022;  management discussions and analyses for each period; , and officer certifications on the System for Electronic Document Analysis and Retrieval (SEDAR). Although the required filings have been made, trading in the Company’s common shares will not resume until: a cease trade order originally issued on May 11, 2022 by the Financial and Consumer Services Commission of News Brunswick has been revoked; and the TSX Venture Exchange has approved the reinstatement of the trading of the Company’s common shares (Evelyn project, Sonora).
  • Excellon Resources Inc., announced the appointment of its Chief Legal Officer & VP, Corporate Affairs (La Platosa mine, Durango).

ON SOCIAL RESPONSIBILITY

  • Fresnillo plc donated two garbage trucks with a capacity of 15 tonnes to the Municipality of Fresnillo, Zacatecas. Each donated truck can collect waste from 15,000 families daily. With this delivery, Fresnillo plc promotes and endorses its commitment to the people of Fresnillo.
  • Grupo Mexico announced an investment of MXP $38,000M (about USD $1.9 B) to expand its mining operations that will generate 11,000 jobs in the next five years in Sonora state. The governor of the state, Alfonso Durazo Montaño, and the executive vice president of Grupo México, Xavier García de Quevedo, announced this series of projects that are currently 47% complete and will be extended until 2027. García de Quevedo explained that the more than 11,000 jobs will be divided into 5,700 direct and indirect jobs in the construction stage and 5,660 permanent jobs in the operation. On the other hand, Irma Potes González, director of Community Development of Grupo México, explained that repair and rehabilitation works are currently being carried out on the drinking water distribution system,  in the municipalities of Nacozari and Cananea to improve the supply of water to the population.

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 quartz hydrothermal breccia from an intermediate sulphidation epithermal vein system in Chihuahua, Mexico.  Photo by Miguel A Heredia.

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

Hydrothermal breccia cemented by Manganese Oxides

By Miguel A Heredia

During the 28th week of the year (July 11th to July 17th, 2022), at least 21 press releases were announced by companies working in Mexico, with six communicating production and financial results, five disclosing deals and corporate issues, five reporting resources and developments of their properties, two announcing financing issues, one informing on exploration results, one commenting on Mexican issues, and one discussing social issues. ON MEXICO ISSUES, Mammoth Resources, Discovery Silver, GR Silver, and Oroco reported the best drilling intercepts in Mexico on the second week of July, 2022.  ON EXPLORATION, In Chihuahua, Mammoth released results from 4 holes drilled at its Tenoriba project.  ON MINING, GoGold reported Q2, 2022 production results from its Parral Tailings project, Chihuahua. Fortuna Silver announced Q2, 2022 production results from its San Jose mine, Oaxaca. Gatos Silver reported Q2, 2022 production and financial results from its Cerro Los Gatos mine in Chihuahua. Orla announced Q2, 2022 production and financial results from its Camino Rojo project, Zacatecas. Torex Gold reported Q2, 2022 production results from its El Limon-Guajes mine in Guerrero. Golden announced Q2, 2022 production results from its Rodeo mine in Durango.  ON FINANCING, Monarca announced that it will be extending the exercise period of a total of 55,900,000 share purchase warrants, all of which are exercisable at $0.075 per share (San Jose project, Chihuahua). Excellon announced that the New York Stock Exchange (NYSE) accepted its plan to regain compliance with the continued listing standards of the NYSE American Company Guide (La Platosa mine, Durango). ON RESOURCES AND DEVELOPMENT, GR Silver released first assay results from the 2022 resource expansion drill program being conducted at its San Marcial project, Sinaloa. Discovery Silver reported results of 22 holes from its phase 2 drill program from its Cordero project in Chihuahua. Bear Creek provided and operational and exploration update on its Mercedes mine, Sonora. Oroco released results from 14 holes drilled at its Santo Tomas project in Sinaloa.  Tarachi provided an update on the progress of its Magistral Mil and Tailings project in Durango. ON DEALS AND CORPORATE ISSUES, Silverton announced the appointment of its new CFO, and the resignation and new replacement of its Director (Pluton project, Durango). Excellon announced the appointment of its new President and CEO (La Platosa mine, Durango).  Fresnillo plc and Radius signed an exclusivity agreement on Plata Verde project, Chihuahua to earn a 70% interest in the project. Sierra Madre reported results from its annual general meeting of shareholders (La Tigra project, Nayarit). SilverCrest announced the appointment of a new member to its Board of Directors (Las Chispas project, Sonora).  ON SOCIAL RESPONSIBILITY, Aura released its 2021 sustainability report (Aranzazu mine, Zacatecas).

ON MEXICO ISSUE

  • Mammoth Resources, Discovery Silver, GR Silver, and Oroco reported the best drilling intercepts in Mexico on the second week of July, 2022. Details are shown in the table below:

ON EXPLORATION

  • Mammoth Resources Corp., provided results from 4 drill holes completed, for a total of 320.7m, at its Tenoriba project in Chihuahua. The most significant drill intercept were encountered in hole TEN-21-14 drilled at the Moreno Zone with 0.32 g/t Au and 6 g/t Ag (0.40 g/t AuEq) over 9m; hole TEN-21-15 drilled at Carneritos Zone with 0.52 g/t Au and 8 g/t Ag (0.63 g/t AuEq) over 30m, including 0.85 g/t Au and 12 g/t Ag (1.02 g/t AuEq) over 6m, including 0.86 g/t Au and 26 g/t Ag (1.21 g/t AuEq) over 3m; hole TEN 21-16 drilled at Carneritos Zone with 0.6 g/t Au and 1 g/t Ag (0.61 g/t AuEq) over 12m, and 0.44 g/t Au and 2 g/t Ag (0.47 g/t AuEq) over 85.7m, including 0.92 g/t Au and 3 g/t Ag (0.97 g/t AuEq) over 6m; and hole TEN-21-17 drilled at Carneritos Zone with 0.6 g/t Au and 3 g/t Ag (0.64 g/t AuEq) over 33m, including 1.06 g/t Au and 1 g/t Ag (1.07 g/t AuEq) over 9m. To date, the company has drilled 2,234.6m in 17 holes.

ON MINING

  • GoGold Resources Inc., reported Q2, 2022 production results from its Parral Tailings project, Chihuahua. The company produced 315,632 Oz Ag, 3,170 Oz Au, and 268,800 Lb Cu (575,301 Oz AgEq).
  • Fortuna Silver Mines Inc., announced Q2, 2022 production results from its San Jose mine, Oaxaca. The company milled 251,945 tonnes of 187 g/t Ag and 1.13 g/t Au, with metallurgical recoveries of 91-33% and 90.5% respectively, to produce 1.38M Oz Ag and 8.3K Oz Au.
  • Gatos Silver Inc., reported Q2, 2022 production and financial results from its Cerro Los Gatos mine in Chihuahua. The company milled 211,350 tonnes of 374 g/t Ag, 0.38 g/t Au, 2.8% Pb, and 5% Zn, with metallurgical recoveries of 90.4%, 48.9%, 90.5%, and 66.4% respectively, to produce 2.3M Oz Ag, 1.27K Oz Au, 11.8M Lb Pb, and 15.6M Lb Zn. Gatos Silver paid its first dividend of $20M to its partners in April 2022, and expects to receive another dividend in Q3, 2022. It also reported a cash balance of $450M as of June 30, 2022.
  • Orla Mining Ltd., announced Q2, 2022 production and financial results from its Camino Rojo project, Zacatecas. The company mined 2,038,831 tonnes of 0.71 g/t Au consisting of 1,657,327 tonnes of ore processed with an average grade of 0.8 g/t Au and 381, 504 tonnes of low grade ore-stockpiled with an average grade of 0.33 g/t Au. In Q2, 2022 Orla produced 25,672 Oz Au, and provided gold production guidance for the full year 2022 of 90K-100K Oz Au. Orla reported a cash balance of $66.7M at June, 2022.
  • Torex Gold Resources Inc., reported Q2, 2022 production results from its El Limon-Guajes mine in Guerrero. The company produced 123,180 Oz Au and sold 123,360 Oz Au, and is firmly on track to deliver on full year production guidance of 430K – 470K Oz Au.
  • Golden Minerals Company announced Q2, 2022 production results from its Rodeo mine in Durango. The company mined 213,925 tonnes of 2.6 g/t Au and 10 g/t Ag with metallurgical recoveries of 75.1% and 82.3% respectively to produce 3,004 Oz Au and 12,678 Oz Ag (3,158 Oz AuEq). Golden sold in doré 3,060 Oz Au and 13,180 Oz Ag (3,219 Oz AuEq).

ON FINANCING

  • Monarca Minerals Inc., announced that it will be extending the exercise period of a total of 55,900,000 share purchase warrants, all of which are exercisable at $0.075 per share. The Warrants were issued pursuant to a private placement which closed on August 20, 2020. The Company proposes to extend the expiry by one year, and accordingly, the new expiry date for the Warrants will be August 20, 2023 (San Jose project, Chihuahua).
  • Excellon Resources Inc., announced that the New York Stock Exchange (NYSE) accepted its plan to regain compliance with the continued listing standards of the NYSE American Company Guide related to insufficient stockholders’ equity. Excellon submitted its plan on May 31, 2022, and has been granted a plan period through October 30, 2023 (La Platosa mine, Durango).

ON RESOURCES AND DEVELOPMENT

  • GR Silver Mining Ltd., released first assay results from the 2022 resource expansion drill program being conducted at its San Marcial project, Sinaloa. Drilling highlights include hole SMSP22-003 with 547 g/t Ag, 0.01 g/t Au, 0.2% Pb, and 0.6% Zn over a true width (TW) of 15.2m, including 1,179 g/t Ag, 0.01 g/t Au, 0.2% Pb, and 0.5% Zn over a TW of 2m; hole SMSP22-012 with 324 g/t Ag, 0.1% Pb, and 0.2% Zn over a TW of 14.9m, including 1,541 g/t Ag, 0.1% Pb, and 0.3% Zn over a TW of 1m; hole SMSP22-02 with 128 g/t Ag, 0.01 g/t Au, 0.2% Pb, and 0.5% Zn over a TW of 14m; and hole SMSP22-10 with 193 g/t Ag, 0.2% Pb, and 0.4% Zn over a TW of 7.1m, including 921 g/t Ag, 0.1% Pb, and 0.3% Zn over a TW of 2m.
  • Discovery Silver Corp., reported results of 22 holes from its phase 2 drill program from its Cordero project in Chihuahua. Drilling highlights include holes C22-610 with 115 g/t Ag, 0.05 g/t Au, 3.7% Pb, and 4.1% Zn (388 g/t AgEq) over 32.6m, including 187 g/t Ag, 0.05 g/t Au, 6.5% Pb, and 7.2% Zn (660 g/t AgEq) over 17.8m, and 55 g/t Ag, 0.05 g/t Au, 0.9% Pb, and 1.6% Zn (147 g/t AgEq) over 15.7m; hole C22-605 with 89 g/t Ag, 0.13 g/t Au, 1.8% Pb, and 3% Zn (265 g/t AgEq) over 38.6m, including 137 g/t Ag, 0.2 g/t Au, 2.8% Pb, and 3.8% Zn (380 g/t AgEq) over 22.3m; hole C22-596 with 49 g/t Ag, 0.06 g/t Au, 1.2% Pb, and 2.5% Zn (184 g/t AgEq) over 60.3m, and 21 g/t Ag, 0.01 g/t Au, 0.1% Pb, and 1.2% Zn (70 g/t AgEq) over 36.4m; and hole C22-609 with 104 g/t Ag, 0.14 g/t Au, 3.2% Pb, and 4.4% Zn (375 g/t AgEq) over 4.9m, and 35 g/t Ag, 0.01 g/t Au, 0.9% Pb, and 1.4% Zn (115 g/t AgEq) over 17.7m, and 64 g/t Ag, 0.06 g/t Au, 1% Pb, and 1.4% Zn (150 g/t AgEq) over 33.1m. “The current set of results is focused on expansion of the open pit and the resource in the northeast of the deposit and will be incorporated in a resource update and Pre-Feasibility Study scheduled for completion in the fourth quarter of this year”.
  • Bear Creek Mining Corporation provided and operational and exploration update on its Mercedes mine, Sonora since its acquisition on last April, 2022.  The company has implemented operating strategies to improve Mercedes’ annual gold production and to initiate an aggressive exploration program. Bear Creek increased development work which resulted in having 15 working faces available, doubling the historical average of work areas. On exploration, the company is conducting Greenfield exploration at San Martin, Diluvio Scout, Margarita, and Neo Zones, where highly prospective structure related to Mercedes mine extend beneath post mineral cover. Drilling highlights include hole L22-652D drilled at Margarita Zone with 6.7 g/t Au and 68 g/t Ag over a true width (TW) of 2.2m; hole L22-649D drilled at Margarita Zone with 4.34 g/t Au and 53 g/t Ag over a TW of 1m; hole L22-655D drilled a Neo Zone with 2.44 g/t Au and 2 g/t Ag over a TW of 1.2m; and hole L22-659D drilled at Neo Zone with 4.43 g/t Au and 2 g/t Ag over a TW of 1.3m, and 2.98 g/t Au and 11 g/t Ag over a TW of 3.3m. To date, a total of 5,166m of RC / diamond have been drilled since the acquisition but additional 3,312m of greenfield exploration drill are planned for the remainder of 2022.
  • Oroco Resource Corporation released results from 14 holes (10,293m) drilled on the North Zone at its Santo Tomas project in Sinaloa. A total of 20 holes have been completed in the North Zone to date. Significant drill intercepts were encountered in hole N001 with 0.39% Cu, 0.01% Mo, 0.045 g/t Au and 2 g/t Ag (0.46% CuEq) over 255m; hole N002 with 0.38% Cu, 0.012% Mo, 0.025 g/t Au and 3 g/t Ag (0.44% CuEq) over 280.1m; hole N003 with 0.39% Cu, 0.014% Mo, 0.019 g/t Au, and 3 g/t Ag (0.45% CuEq) over 207.7m; hole N004 with 0.38% Cu, 0.012% Mo, 0.017 g/t Au, and 2 g/t Ag (0.44% CuEq) over 63.7m; hole N006 with 0.39% Cu, 0.004% Mo, 0.051 g/t Au, and 2 g/t Ag (0.44% CuEq) over 188.5m; hole N007 with 0.32% Cu, 0.005% Mo, 0.029 g/t Au, and 3 g/t Ag (0.37% CuEq) over 191.3m, and 0.32% Cu, 0.012% Mo, 0.018 g/t Au, and 3 g/t Ag (0.38% CuEq) over 109.9m; hole N008 with 0.38% Cu, 0.01% Mo, 0.038 g/t Au, and 3 g/t Ag (0.45% CuEq) over 328.3m; hole N009 with 0.76% Cu, 0.011% Mo, 0.021 g/t Au, and 5 g/t Ag (0.82% CuEq) over 32m, and 0.31% Cu, 0.027% Mo, 0.013 g/t Au, and 2 g/t Ag (0.42% CuEq) over 21.9m, and 0.29% Cu, 0.014% Mo, 0.011 g/t Au, and 2 g/t Ag (0.35% CuEq) over 123.6m, and 0.45% Cu, 0.016% Mo, 0.022 g/t Au, and 3 g/t Ag (0.53% CuEq) over 15.2m; hole  N010 with 0.36% Cu, 0.011% Mo, 0.029 g/t Au, and 2 g/t Ag (0.42% CuEq) over 311m; hole N011 with 0.39% Cu, 0.007% Mo, 0.039 g/t Au, and 3 g/t Ag (0.45% CuEq) over 230.8m; hole N012 with 0.35% Cu, 0.015% Mo, 0.025 g/t Au, and 3 g/t Ag (0.42% CuEq) over 296.9m; and hole N013 with 0.27% Cu, 0.009% Mo, 0.023 g/t Au, and 2 g/t Ag (0.32% CuEq) over 128m, and 0.36% Cu, 0.02% Mo, 0.018 g/t Au, and 2 g/t Ag (0.45% CuEq) over 95m, and 0.24% Cu, 0.009% Mo, 0.014 g/t Au, and 2 g/t Ag (0.29% CuEq) over 126m. The 2021-2022 drill program has now spanned 1,100m of strike length along the core of the North Zone mineral deposit at Santo Tomas project.
  • Tarachi Gold Corp., provided an update on the progress of its Magistral Mill and Tailings project in Durango. The company reported that the final stages of the metallurgical test work are nearing completion and results are expected to arrive within the next few weeks. It also commented that the design and engineering activities will commence upon receipt of the final metallurgical work. Tarachi´s Board and management are confident that its Magistral Mill and Tailings project will be a high-return, high-margin Au producer with the following metrics from the USD $1600-base price Preliminary Economic Assessment (PEA): All in Sustaining Cost (AISC) of USD $705/ Oz Au; After-tax IRR of 85%; and After-tax payback period of 12 months.

ON DEALS AND CORPORATE ISSUES

  • Silverton Metals Corp., announced the appointment of its new CFO, and the resignation and new replacement of its Director (Pluton project, Durango). 
  • Excellon Resources Inc., announced the appointment of its new President and CEO, effective July 28, 2022 (La Platosa mine, Durango).
  • Fresnillo plc, through its subsidiary Minera san Julian, and Radius Gold Inc., through its subsidiary Geonorte signed an exclusivity agreement to earn a 70% interest in Plata Verde project, Chihuahua. Fresnillo has to spend over a four year period a minimum cumulative amount of USD $5M on exploration activities at the Plata Verde project and make option payments to Radius totalling USD $3.117M, which include USD $1.117M to cover underlying property agreements to have the right to earn a 70% interest in the property. If the option is exercised, a new company (NewCo) would be set up to own the Plata Verde Project; NewCo would be owned 70% by Minera San Julian and 30% by Geonorte. Should either Party’s interest fall below 10% interest in NewCo that interest would convert to a 2% NSR.
  • Sierra Madre Gold and Silver Ltd., reported results from its annual general meeting of shareholders (La Tigra project, Nayarit).
  • SilverCrest Metals Inc., announced the appointment of a new member to its Board of Directors effective immediately (Las Chispas project, Sonora).

ON SOCIAL RESPONSIBILITY

  • Aura Minerals Inc., released its 2021 sustainability report. This report underscored the Company’s commitment to being an innovative, safe, responsible, and sustainable mining Company, and highlights initiatives planned across eight Environmental, Social, and Governance (ESG) Pillars (Aranzazu mine, Zacatecas).

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

On the picture above, a quartz hydrothermal breccia cemented by Mn Ox from an epithermal vein system in Durango, Mexico.  Photo by Miguel A Heredia.

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

By Jorge Cirett

During the 23rd week of the year (June 6th to June 12th, 2022), at least 11 press releases were announced by companies working in Mexico. This number reflects the summer decrease in press releases with one of the lowest numbers recorded since 2015 (the lowest being 9); notably, news in shares/financing were more than half of the total. There was no relevant news in the Mining and Resources and Development sections. To note, two companies posted exploration advances on their properties, two companies are to undertake financing rounds for up to $3 M and C$2 M, two companies increased/closed oversubscribed financing rounds to C$3.4 M and C$4 M, one company was upgraded to the OTCQX Best Market, one other cashed in a warrants exercise for C$18 M. A royalties company already with business in Mexico made an agreement on one other property. One company posted on metallurgical results on its property.  ON MEXICO ISSUES, The Instituto Politecnico Nacional celebrated the careers of five of its graduates on the Mexican mining industry. The Sonora Mining Cluster is hosting the Fifth International Forum on Full Safety. ON EXPLORATION, in Sonora, Tocvan Ventures presented drill results from Pilar; Benjamin Hill Mining released drilling results from the Sonora Copper zone at its Sonora Gold project. ON MINING, no relevant news. ON FINANCING, Silver Viper and Sonoro Gold are to undertake non-brokered private placements to raise up to $3 M and C$2 M respectively. Aztec Minerals closed a non-brokered oversubscribed private placement for CAD$3.4 M. Reyna Silver increased the size of its private placement from C$3 M to C$4 M. Prime Mining informed on its upgrading to the OTCQX Best Market. Discovery Silver informed that the exercise of warrants resulted in C$18 M in gross proceeds. Orogen Royalties reported positive metallurgical results from tests at its San Javier project in Sonora.  ON RESOURCES AND DEVELOPMENT, Barksdale Resources released positive metallurgical results from its San Javier project in Sonora. ON DEALS AND CORPORATE ISSUES, no relevant news.  ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUES

  • The Instituto Politecnico Nacional (IPN) recognized the professional lifework on the Mexican mining industry of five of its graduates: Sergio Almazan Esqueda (current AIMMGM president),  Jaime Gutiérrez (current Camimex president), Karina Neri (Mining concession manager at Peñoles), Marco Gustavo Monroy (Centro de Estudios, Servicios y Consultorías Ambientales) and Armando Alatorre (current Colegio de Ingenieros de Minas, Metalurgistas y Geólogos de México president).
  • The Sonora Mining Cluster is hosting in Hermosillo, Sonora, the Fifth International Forum on Full Safety in Mining (Quinto Foro Internacional de Seguridad Integral en Minería), during June 23 and 24, 2022.

ON EXPLORATION

  • Tocvan Ventures Corp. presented drill results for two more reverse circulation holes at its Pilar project in Sonora. Both holes targeted parallel trends to the Main zone. Highlighted hole-length intervals on one hole comprise 54.9 m @ 0.3 gpt Au, 5 gpt Ag (including 13.7 m @ 0.6 gpt Au, 13 gpt Ag and 9.2 m @ 0.6 gpt Au, 3 gpt Ag). The other hole did not intercept relevant gold mineralization. ”Three zones of mineralization have been identified ….. the Main Zone, North Hill and 4-Trench. Structural features and zones of mineralization within the structures follow an overall NW-SE trend of mineralization. Over 24,200 m of drilling have been completed to date”. 
  • Benjamin Hill Mining Corp. released further drilling results from the Sonora Copper zone at its Sonora Gold project in Sonora. “The Sonora Copper quartz breccia vein system consists of two major sub-parallel veins …… Outcrops of the Sonora Copper vein system have been mapped over a surface length of approximately 850 m ….. The vein structures are composed of quartz with barite, sulfides and primary oxides …. The veins are hosted in granitoids and volcano-sedimentary rocks, with a close relationship to porphyry dikes”. Highlighted core length intervals comprise 1.45 m @ 0.62% Cu, 4.2 m @ 0.52% Cu (including 1.7 m @ 0.5% Cu, 1.08 gpt Au); 8.7 m @ 0.58% Cu (including 1.85 m @ 1.77% Cu, 0.25 gpt Au and 1.25 m @ 0.4% Cu, 0.49 gpt Au). The presence of a porphyry copper system at depth is suggested by historical magnetometry surveys by the SGM, induced polarization anomalies along wide structures kilometers in length on a geophysical survey completed this year and the high copper, gold, molybdenum and bismuth numbers on geochemical samples and core.

ON MINING

  • No Relevant News.

ON FINANCING

  • Silver Viper Minerals Corp. intends to undertake a non-brokered private placement financing to raise up to $3 M in gross proceeds (La Virginia, Sonora).
  • Sonoro Gold Corp. is to undertake a non-brokered private placement to raise up to C$2 M (Cerro Caliche, Sonora).
  • Aztec Minerals Corp. closed an oversubscribed CAD$3.4 M non-brokered private placement equity financing. Alamos Gold Inc. participated with CAD$2.4 M, after which Alamos holds a security percentage of 9.9% of shares on an undiluted basis, and 18% on a partially diluted basis, assuming the exercise of warrants (Cervantes, Sonora).
  • Reyna Silver Corp. increased the size of its previously announced private placement from C$3 M to C$4 M (Guigui and Batopilas, Chihuahua).
  • Prime Mining Corp. reported that the company has been upgraded and qualified to trade on the OTCQX Best Market from the OTCQB Venture Market (Los Reyes, Sinaloa).
  • Discovery Silver Corp. announced that exercise of purchase warrants resulted in gross proceeds of C$18 M. Mr. Eric Sprott owns, through 2176423 Ontario Ltd., 26.2% of outstanding shares on a non-diluted basis and 27.3.% on a partially diluted basis (Cordero, Chihuahua).
  • Orogen Royalties Inc. signed an agreement with Advanced Lithium Corp. to purchase 3% net smelter royalties on three prospective mineral licences in the Lake Victoria gold fields in western Kenya. “Upon closing of the Agreement, Orogen will pay Advance US$120,000 for the Royalties and transfer its interest in the Sarape Gold project to Advance. Orogen will retain a 1.5% net smelter return royalty on the Sarape project” (Sarape, Sonora).

ON RESOURCES AND DEVELOPMENT

  • Barksdale Resources Corp. reported positive results from the first phase of metallurgical test work at the San Javier project in Sonora. The study by McClelland Labs Inc. envisaged eight column tests on one inch material from four large diameter diamond core holes drilled on late summer of 2021. Oxide dominant samples had recoveries between 77% and 93% of acid soluble copper and between 72% and 89% for acid and cyanide soluble copper, with recovery still increasing after the 120 days of column tests. Significantly, acid agglomeration does not increase copper recovery, pointing to a favorable net acid consumption of approximately 2 to 3 kg per tonne.  

ON DEALS AND CORPORATE ISSUES

  • No Relevant News.

ON SOCIAL RESPONSIBILITY

  • No Relevant News.

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

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

Cu silicates (chrysocolla)

By Miguel A Heredia

During the 22ndweek of the year (May 30th to June 5th, 2022), at least 19 press releases were announced by companies working in Mexico, with seven reporting resources and developments of their properties, four disclosing deals and corporate issues, two communicating production and financial results, two announcing financing issues, two commenting on Mexican issues, and two informing on exploration results. ON MEXICO ISSUES, Advance Lithium provided an update on the recent mining law changes. Prime Mining, Vizsla Silver and Zacatecas Silver reported the best drilling intercepts in Mexico on the first week of June, 2022. ON EXPLORATION, In Sonora, Benjamin Hill reported drill results from the El Fierro Zone at its Sonora Gold project, Sonora. In Coahuila, Monumental announced plans for follow-up exploration work at its Jemi Heavy Rare Earth project.  ON MINING, Santacruz reported Q1, 2022 production results from its Zimapan mine in Hidalgo. Minera Alamos reported Q1, 2022 financial results from its Santana project, Sonora. ON FINANCING, Reyna Silver announced a brokered private placement for gross proceeds of up to CAD $3M (Guigui and Batopilas projects, Chihuahua). Alamos Gold declared a quarterly dividend of USD $0.025 per common share (Mulatos mine, Sonora). ON RESOURCES AND DEVELOPMENT, Zacatecas Silver commenced its work plans to prepare a current resource estimate at its Esperanza project, Morelos. Discovery Silver reported positive metallurgical results and provided an update on its flagship Cordero project, Chihuahua. Prime reported additional phase 2 drill results from 12 step out drill holes at the Guadalupe East deposit within its Los Reyes project in Sinaloa. Magna Gold filed an independent technical report for its Margarita project, Chihuahua. Minera Alamos provided an update on the continuing progress at its Santana project in Sonora. Vizsla reported results from eighteen new holes drilled at the southern extension of the Napoleon Vein at its flagship Panuco project, Sinaloa.  Zacatecas Silver released results from the Panuco Norte drilling program at its Zacatecas project, Zacatecas. ON DEALS AND CORPORATE ISSUES, Azure entered into a binding sale agreement to sell its subsidiary companies that own and operate its Mexican assets to Bendito Resources for a combination of cash and shares valued at A $20M. Silverton entered into a share purchase agreement with Zapata to acquire the Margaritas property in Durango. Pantera Silver announced the appointment of a new member to its Board of Directors (Nuevo Taxco project, Guerrero). ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUES

Advance Lithium Corp., provided an update on the recent mining law changes that states that all the activities related to the exploration, exploitation and profit of lithium shall be the responsibility of the yet to be formed national lithium company. Advance has identified large zones of lithium, potassium and boron mineralization at their claims which are in good standing, with work completed and all legal filings in order. It should be noted that the analysis of the company’s deposits show that the composition of the mineralization is approximately equal parts lithium and potassium. While lithium is covered by this new legislation in Mexico, potassium is not. The potential of near term production of both lithium and potassium products puts the Company in a unique position with its salars/salt lakes deposits and looks forward to discussing the lithium opportunities with the newly formed Mexican national lithium company.

  • Prime Mining, Vizsla Silver and Zacatecas Silver reported the best drilling intercepts in Mexico on the first week of June, 2022. Details are shown in the table below:

ON EXPLORATION
·         Benjamin Hill Mining Corp., reported drill results from the El Fierro Zone at its Sonora Gold project, Sonora. This drill program explored for the presence and continuity of metallic mineralization found in outcroppings at surface, in epithermal veins, skarn zones and hydrothermal breccias, as well as for possible magmatic source of mineralization as indicated by chargeability highs. Drilling highlights include hole SGB-22-23 with 0.25% Cu over 1.25m; hole SGB-22-24 with 0.67% Cu over 1.25m; hole SGB-22-26 with 0.39 g/t Au over 0.95m, plus 0.26% Cu over 1.45m; and hole SFB-22-21 with 3.54% Cu over 3m, including 10% Cu, 2.11 g/t Au and 52 g/t Ag over 0.6m.
·         Monumental Minerals Corp., announced plans for follow-up exploration work at its Jemi Heavy Rare Earth project. The follow-up work program will be divided in two phases. The first phase will consists of detailed geological mapping and collection of structural data, along with a ground radiometric survey to identify drill targets. The second phase will consists of a stream sediment geochemical survey to assess areas within and beyond the 8km2 area of highest priority.
ON MINING
·         Santacruz Silver Mining Ltd., reported Q1, 2022 production results from its Zimapan mine in Hidalgo. The company processed 191,413 tonnes to produce 901.2K Oz AgEq. It sold 872.7K Oz AgEq and reported cash and All Included Sustaining Costs (AISC) of USD $17.04 and USD $23.38 per Oz AgEq sold respectively.
·         Minera Alamos Inc., announced Q1, 2022 financial results from its Santana project, Sonora. The company reported revenues of CAD $5.16M from approximately 65% of its gold production (the remaining gold was sold post quarter end); income from operation of CAD $1.53M; a net income of CAD $1.06M; and cash and cash equivalents of CAD $8,17M.
ON FINANCING
·         Reyna Silver Corp., announced a brokered private placement with Red Cloud Securities Inc. (the “Agent”), for gross proceeds of up to CAD $3M. The Agent will have an option, exercisable in full or in part up to 48 hours prior to the closing of the Offering, to sell up to an additional 2,777,778 Units at the Offering Price for additional gross proceeds of up to CAD $M. The company plans to use part of the gross proceeds to explore their Guigui and Batopilas projects in Chihuahua.
·         Alamos Gold Inc., declared a quarterly dividend of USD $0.025 per common share. The Company has paid dividends for 13 consecutive years during which time USD $264M has been returned to shareholders through dividends and share buybacks, including USD $27M thus far in 2022. This includes 1M shares repurchased under the normal course issuer bid in May 2022 at a cost of USD $7.4M, or USD $7.42 per share. The dividend is payable on June 30, 2022 to shareholders of record as of the close of business on June 16, 2022 (Mulatos mine, Sonora).
ON RESOURCES AND DEVELOPMENT
·         Zacatecas Silver Corp., commenced its work plans to prepare a current resource estimate at its Esperanza project, Morelos. The Esperanza project has a historical resource estimate of a measured and indicated resource of 34,352,000 tonnes of 0.98 g/t Au and 8 g/t Ag for 1.08M Oz Au and 8.9M Oz Ag and an inferred resource of 718,000 tonnes of 0.80 g/t Au and 15 g/t Ag for 18.4K Oz Au and 347.2K Oz Ag. Measured and indicated resources are 1.22M Oz AuEq of 1.11 g/t AuEq. Immediate steps to confirm resource estimate include: Extensive verification through sampling at least 10% of the historical drill core and new metallurgical test work by SGS Minerals. Additionally, the company is to commence work to identify and prioritize expansion and exploration targets throughout the project.
·         Discovery Silver Corp., reported positive metallurgical results and provided an update on its flagship Cordero project, Chihuahua. Initial results from the metallurgical testwork showed recoveries typically ranging from 90-95% for Ag, Pb, and Zn from very coarse grind size and with lower reagent consumption than what was assumed earlier. The company also announced the project study team for the Pre-Feasibility Study on Cordero project, in which plans to release an updated resource estimate in Q4, 2022. The updated resource estimate will be based on a total of 283,000m in 683 drill holes.
·         Prime Mining Corp., reported additional phase 2 drill results from 12 step out drill holes at the Guadalupe East deposit within its Los Reyes project in Sinaloa. Highlights drill intercepts include hole 22GE-53 with 9.67 g/t Au and 314 g/t Ag over a true width (TW) of 0.80m, plus 3.01 g/t Au and 220 g/t Ag over a TW of 0.90m, plus 13.65 g/t Au and 311 g/t Ag over a TW of 1.50m, plus 61.99 g/t Au and 978 g/t Ag over a TW of 3.10m, including 200 g/t Au and 2,830 g/t Ag over a TW of 0.90m, plus 5.90 g/t Au and 341 g/t Ag over a TW of 0.60m; hole 22GE-48 with 2.93 g/t Au and 62 g/t Ag over a TW of 3.90m, including 4.41 g/t Au and 105 g/t Ag over a TW of 2m, plus 1.16 g/t Au and 79 g/t Ag over a TW of 2.40m, plus 1.78 g/t Au and 82 g/t Ag over a TW of 0.50m, plus 4.29 g/t Au and 125 g/t Ag over a TW of 1.40m, plus 1.62 g/t Au and 120 g/t Ag over a TW of 1.1m, plus 1.24 g/t Au and 88 g/t Ag over a TW of 1.10m, plus 3.19 g/t Au and 34 g/t Ag over a TW of 1.10m, plus  2.31 g/t Au and 98 g/t Ag over a TW of 1.40m, including 3.68 g/t Au and 161 g/t Ag over a TW of 0.80m; hole 22GE-45 with 12.79 g/t Au and 300 g/t Ag over a TW of 2.50m, including 16.96 g/t Au and 392 g/t Ag over a TW of 1.80m; hole 22GE-51 with 3.01 g/t Au and 161 g/t Ag over a TW of 0.60m; and hole 22GE-46 with 1.95 g/t Au and 155 g/t Ag over a TW of 2.30m, including 3.11 g/t Au and 249 g/t Ag over a TW of 1.30m.
·         Magna Gold Corp., filed an independent technical report for its Margarita project, Chihuahua, dated May 24, 2022, with an effective date of April 8, 2022. The technical report contains an initial mineral resource estimate.
·         Minera Alamos Inc., provided an update on the continuing progress at its Santana project in Sonora. The company announced that the development of the Nicho Main Zone is now underway with haulage and access road largely completed. First mineralized material should be stacked on the Santana leach pad as operation move into the second half of the year. At Nicho Norte, the gold mined and stacked on the leach pad to date total approximately 18K Oz with roughly 7K Oz recovered in concentrate.
·         Vizsla Silver Corp., reported results from eighteen new holes drilled at the southern extension of the Napoleon Vein at its flagship Panuco project, Sinaloa. Drilling highlights include hole NP-22-258 with 1,139 g/t Ag, 11.48 g/t Au, 0.3% Pb, and 0.8% Zn (2,098 g/t AgEq) over a true width (TW) of 4.30m; hole NP-22-271 with 223 g/t Ag, 2.76 g/t Au, 1.5% Pb, and 5% Zn (677 g/t AgEq) over a TW of 7m, including 789 g/t Ag, 18.5 g/t Au, 5.7% Pb, and 11.7% Zn (2,871 g/t AgEq) over a TW of 0.46m, including 343 g/t Ag, 5.11 g/t Au, 1.7% Pb, and 2.9% Zn (909 g/t AgEq) over a TW of 0.61m, including 403 g/t Ag, 5.04 g/t Au, 1% Pb, and 4% Zn (985 g/t AgEq) over a TW of 0.91m, including 191 g/t Ag, 1.12 g/t Au, 2.9% Pb, and 10.9% Zn (774 g/t AgEq) over a TW of 0.99m; hole NP-22-277 with 151 g/t Ag, 2.63 g/t Au, 0.2% Pb, and 0.5% Zn (389 g/t AgEq) over a TW of 7m, including 315 g/t Ag, 2.32 g/t Au, 0.3% Pb, and 0.4% Zn (524 g/t AgEq) over a TW of 0.5m. including 630 g/t Ag, 4.94 g/t Au, 0.4% Pb, and 0.5% Zn (1,055 g/t AgEq) over a TW of 0.75m, including 189 g/t Ag, 2.7 g/t Au, 0.8% Pb, and 1.8% Zn (495 g/t AgEq) over a TW of 0.79m; and hole NP-22-281 with 202 g/t Ag, 1.55 g/t Au, 0.7% Pb, and 1.1% Zn (387 g/t AgEq) over a TW of 5.4m, including 1,275 g/t Ag, 6.25 g/t Au, 3.5% Pb, and 4% Zn (2,2027 g/t AgEq) over a TW of 0.34m, including 398 g/t Ag, 3.75 g/t Au, 1.9% Pb, and 2.7% Zn (855 g/t AgEq) over a TW of 0.84m, including 386 g/t Ag, 3.09 g/t Au, 1.8% Pb, and 2.5% Zn (779 g/t AgEq) over a TW of 0.59m. These results are part of the ongoing 12,000m resource/discovery-based drill program.
·         Zacatecas Silver Corp., released results from the Panuco Norte drilling program at its Zacatecas project, Zacatecas. Drilling highlights include hole PAN2022-057 with 224 g/t Ag and 0.15 g/t Au (224 g/t AgEq) over 1.83m; hole PAN2022-56 with 151 g/t Ag and 0.16 g/t Au (163 g/t AgEq) over 3.71m; and hole PAN2022-61 with 231 g/t Ag and 0.22 g/t Au (248 g(/t AgEq) over 1.28m. The Company has now completed 63 drill holes at Panuco North for a total of 7,240 meters. “Drilling in the eastern and central part of the Panuco North Vein has now intercepted near-surface mineralization over a strike length of 700 m, with the vein remaining open along strike and open at depth. Assay results from 22 Panuco North holes are pending”.
ON DEALS AND CORPORATE ISSUES
·         Azure Minerals Limited entered into a binding sale agreement to sell its subsidiary companies that own and operate its Mexican assets to Bendito Resources for a combination of cash and shares valued at A $20M, consisting of A $10M cash and A $10M shares in Bendito. The portfolio consists of eight properties, but Alacrán, Oposura, and Promontorio projects will form the core assets of Bendito, all located within the Laramide Copper Province in N-NW Mexico. Alacrán, in Sonora State, hosts the high-grade Mesa de Plata silver deposit and adjacent Loma Bonita gold-silver deposit which together contain 32 M Oz Ag and 150K Oz Au in JORC Mineral Resources. A Scoping Study / Preliminary Economic Assessment on Oposura, in Sonora State,showed robust results for a high-quality, high-grade massive sulphide Zn-Pg-Ag development opportunity. The project holds significant exploration upside for resource expansion. At Promontorio, Chihuahua, Azure established a high-grade, near-surface Cu-Au-Ag resource and identified prospectivity for an underlying copper porphyry system.
·         Silverton Metals Corp., entered into a share purchase agreement with Zapata Exploration Ltd., to acquire the Margaritas property in Durango by acquiring all of the issued and outstanding shares of Zapata´s Mexican subsidiary, Impulsora de Proyectos Mineros S.A. de C.V. The Margaritas property comprises two mining concessions totalling 500 hectares, and consists of a 3.5km long and 240m of vertical extension of an under-explored, high-grade epithermal vein system hosted in productive volcanic rocks of the Sierra Madre Occidental. This vein system has returned grades up to 73.7 g/t Au in dump samples and 31.6 g/t Au in rock chip channel samples with grades between 1-38 g/t Ag. To acquire all of the issued and outstanding shares of Impulsora, Silverton has agreed to issue 750K common shares and grant a net smelter return royalty of 0.5%, which may be repurchased at a price of USD $250K.
·         Pantera Silver Corp., announced the appointment of a new member to its Board of Directors. In addition, the Board of Directors of the Company has authorized the granting of incentive stock options under its Stock Option Plan to purchase 300K common shares of the Company at an exercise price of CAD $0.20 per share for a five-year term expiring June 1, 2027. The stock options are being granted to certain directors and advisors of the Company (Nuevo Taxco project, Guerrero).
ON SOCIAL RESPONSIBILITY
·         No relevant news.

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

On the picture above, Cu silicates (chrysocolla) in a Carbonate Replacement Deposit in Durango, Mexico.  Photo by Miguel A Heredia.

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

Hydrothermal Breccia

By Miguel A Heredia

During the 20th week of the year (May 16th to May 22th, 2022), at least 15 press releases were announced by companies working in Mexico, with six reporting resources and developments of their properties, four disclosing deals and corporate issues, three communicating production and financial results, and two announcing financing issues. ON MEXICO ISSUES, no relevant news. ON EXPLORATION, no relevant news.  ON MINING, Altaley announced that it has begun pre-production mining and mill commissioning operations at its Tahuehueto property in Durango. Excellon reported Q1, 2022 production and financial results from its Platosa mine in Durango. Mag Silver reported Q1, 2022 production and financial results from its Juanicipio project in Zacatecas, where it owns 44% interest. ON FINANCING, Alamos Gold entered into a share purchase plan (Mulatos, Sonora). Aztec Minerals announced a non-brokered private placement for gross proceeds of up to CAD $3M (Cervantes project, Sonora). ON RESOURCES AND DEVELOPMENT, Discovery Silver reported results from nineteen holes from its phase 2 drill program collared at its Cordero project in Chihuahua. GoGold received positive metallurgical results of its Los Ricos South deposit, and updated pre-feasibility activities. Silver Tiger released results from its ongoing drill program at its El Tigre project, Sonora. Sonoro reported results from seven additional drill holes completed at its Cerro Caliche project, Sonora. Vizsla released results from ten new drill holes completed at its Panuco project, Sinaloa. Starcore announced that its Board of Directors approved a USD $2M exploration budget for its most prolific projects in Mexico. ON DEALS AND CORPORATE ISSUES, Elemental Royalties announced that Bear Creek completed the acquisition of the Mercedes mine in Sonora. Fabled amended its option agreement with Golden Minerals with respect to the Santa Maria project in Chihuahua. Prismo announced the appointment of its Director of Business Development (Los Pavitos project, Sonora). Riverside and Hochschild signed an option agreement for la Union project in Sonora. ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUE

  • No relevant news.

ON EXPLORATION

  • No relevant news.

ON MINING

  • Altaley Mining Corporation announced that it has begun pre-production mining and mill commissioning operations at its Tahuehueto property in Durango. It has stockpiled over 29K tonnes of ore to be used in the commissioning process and pre-production phases of the 1st ball mill. The plan is to process up to 500 tonnes per day in the first ball mill to produce a separate precious metal rich lead concentrate and a zinc concentrate. It also will produce a copper concentrate later on. Altaley will install a second 500 tonnes ball mill to increase milling capacity to 1000 tonnes per day. It is expected to be completed in Q3, 2022.
  • Excellon Resources Inc., reported Q1, 2022 production and financial results from its Platosa mine in Durango. The company mined 14,955 tonnes and milled 14, 585 tonnes of 504 g/t Ag, 5.3% Pb, and 6.7% Zn with metallurgical recoveries of 88.5%, 72.1%, and 80% respectively, to produce 209.4K Oz Ag, 1.2M Lb Pb, and 1.7M Lb Zn (or 384K Oz AgEq), at cash and all included sustain cost (AISC) of USD $10.49 and USD $18.92 per Oz Ag produced respectively. Excellon sold 186.4M Oz Ag, 1.1M Lb Pb, and 1.55M Lb Zn (or 345LK Oz Ag).It reported revenues of USD $8.5M, gross profit of USD $583K, and cash flow from operations of USD $1.9M.
  • Mag Silver Corp., reported Q1, 2022 production and financial results from its Juanicipio project in Zacatecas, where it owns 44% interest. The company announced that 145,484 tonnes of 597 g/t Ag were processed through the Fresnillo and Saucito plants, with 2.2M payable Oz Ag, 5.3K payable Oz, 2.4M Lb Pb and 3.24 M Lb Zn produced and sold. Mag Silver also reported that pre-commercial production sales (net of treatment and processing costs) totaled USD $64.9M for the quarter, less USD $18.7M in mining and transportation costs and depreciation and amortization, netting USD $46.2M in gross profit by Juanicipio in the quarter.

ON FINANCING

  • Alamos Gold Inc., entered into a share purchase plan. The company has purchased 1M shares at an average price of USD $7.415 at a cost of USDS $7.4M (Mulatos, Sonora).
  • Aztec Minerals Corp., announced a non-brokered private placement for gross proceeds of up to CAD $3M. The company announced that Alamos Gold Inc., has indicated that it intends to purchase securities under the offering to obtain a 9.9% interest in the company.  Part of the gross proceeds will be used to conduct exploration work at its Cervantes project in Sonora, as well as for general working capital purposes.

ON RESOURCES AND DEVELOPMENT

  • Discovery Silver Corp., reported results from nineteen holes from its phase 2 drill program collared at its Cordero project in Chihuahua. Results include resource upgrade drilling for the Pre-Feasibility Study (PFS), planned for Q4, 2022, and expansion drilling of the Preliminary Economic Assessment (PEA) open pit and the resource pit. Drilling highlights include hole C21-560 with 234 g/t Ag, 0.15 g/t Au, 3.8% Pb, and 6.5% Zn (606 g/t AgEq) over 18.1m; hole C21-564 with 28 g/t Ag, 0.16 g/t Au, 0.3% Pb, and 1% Zn (85 g/t AgEq) over 51.2m, plus 91 g/t Ag, 0.12 g/t Au, 1.8% Pb, and 3% Zn (266 g/t AgEq) over 11.2m, plus 29 g/t Ag, 0.06 g/t Au, 0.4% Pb, and 0.8% Zn (75 g/t AgEq) over 80.2m, plus 95 g/t Ag, 0.21 g/t Au, 1.9% Pb, and 4.5% Zn (337 g/t AgEq) over 33.9m; hole C21-544 with 45 g/t Ag, 0.07 g/t Au, 0.9% Pb, and 1.2% Zn (122 g/t AgEq) over 60.4m, plus 23 g/t Ag, 0.04 g/t Au, 0.5% Pb, and 1% Zn (77 g/t AgEq) over 27.1m; and hole C21-574 with 272 g/t Ag, 0.16 g/t Au, 4.1% Pb, and 1.9% Zn (483 g/t AgEq) over 13.4m, plus 38 g/t Ag, 0.08 g/t Au, 0.6% Pb, and 2.2% Zn (146 g/t AgEq) over 12.3m, plus 46 g/t Ag, 0.07 g/t Au, 0.3% Pb, and 1.6% Zn (122 g/t AgEq) over 27.5m. “The Company has now completed 71,000 m in 211 holes as part of its Phase 2 drill program. Phase 2 drilling will continue through the remainder of the year and will be focused on three key areas: (1) PFS drilling consisting of reserve definition and engineering drilling; (2) resource expansion in the northeast of the deposit and at depth; and (3) initial drill testing of five property-wide targets on the Company’s extensive land package”.
  • GoGold Resources Inc., received positive metallurgical results of its Los Ricos South deposit, and updated pre-feasibility (PFS) activities. The optimized leach test work returned 82-88% and 92-97% for silver and gold recovery respectively; the optimized conditions encompassed a 96-hour leach period to maximize silver recovery, four hours of pre-aeration, 2 g/l of sodium cyanide and a nominal grind of 80% passing 75 microns; Merrill Crowe (zinc precipitation) testing determined that gold and silver was efficiently precipitated out of the pregnant solution under optimum conditions. GoGold also provided an update on the PFS. Highlights are: PFS testing complete with development of final process design criteria underway; major equipment sized and quotes received to finalize capital costs; and process flow diagrams completed.
  • Silver Tiger Metals Inc., released results from its ongoing drill program at its El Tigre project, Sonora. Drilling highlights include hole ET-21-329 with 0.13 g/t Au, 162 g/t Ag, 0.27% Cu, 6.4% Pb, and 2.8% Zn (442 g/t AgEq) over 28m, including 0.22 g/t Au, 429 g/t Ag, 0.22% Cu, 4.8% Pb, and 6.9% Zn (810 g/t AgEq) over 9.1m, including 0.32 g/t Au, 748 g/t Ag, 0.13% Cu, 3.3% Pb, and 13.7% Zn (1,317 g/t AgEq) over 3.3m, including 0.28 g/t Au, 1,624 g/t Ag, 0.1% Cu, 1.4% Pb, and 19.6% Zn (2,338 g/t AgEq) over 1m; and hole ET-21-364 with 0.14 g/t Au, 63 g/t Ag, 0.02% Cu, 0.3% Pb, and 0.8% Zn (108 g/t AgEq) over 25.9m, including 0.14 g/t Au, 83 g/t Ag, 0.03% Cu, 0.2% Pb, and 0.7% Zn (126 g/t AgEq) over 14.2m, including 0.19 g/t Au, 76 g/t Ag, 0.02% Cu, 1.8% Pb, and 3.6% Zn (253 g/t AgEq) over 2.3m, including 0.2 g/t Au, 111 g/t Ag, 0.03% Cu, 3.5% Pb, and 7.2% Zn (450 g/t AgEq) over 0.8m.
  • Sonoro Gold Corp., reported results from seven additional drill holes completed at its Cerro Caliche project, Sonora. Drilling highlights include hole SCR-305 with 0.54 g/t Au over 36.5m, including 3.59 g/t Au over 1.53m, and including 3.32 g/t Au over 1.53m; hole SCR-307 with 9.58 g/t Au over 9.14m, including 14.17 g/t Au over 6.09m, including 38.2 g/t Au over 1.53m; and hole SCR-309 with 1.37 g/t Au over 6.1m, including 3.97 g/t Au over 1.53m. “The drilling campaign at Cerro Caliche is now complete with final assays expected to be announced in June.  New geological data from over 7,200m and 63 drill holes will be included in a further updated resource estimate scheduled to be released in the fall of 2022”.
  • Vizsla Silver Corp., released results from ten new drill holes completed at the Tajitos-Copala resource area within its Panuco project, Sinaloa. Drilling highlights include hole CS-22-161 with 2,461 g/t Ag and 13.16 g/t Au (3,513 g/t AgEq) over a true width (TW) of 2.65m, including 12,424 g/t Ag and 96.3 g/t Au (20,123 g/t AgEq) over a TW of 0.2m; hole CS-22-157 with 713 g/t Ag and 3.76 g/t Au (1,013 g/t AgEq) over a TW of 4.2m, including 861 g/t Ag and 6.83 g/t Au (1,407 g/t AgEq) over a TW of 0.6m, including 1,480 g/t Ag and 5.84 g/t Au (1,947 g/t AgEq) over a TW of 0.4m, and including 1,420 g/t Ag and 6.35 g/t Au (1,928 g/t AgEq) over a TW of 1.2m; hole CS-22-154 with 2,400 g/t Ag and 11.08 g/t Au (3,286 g/t AgEq) over a TW of 1.7m, including 4,230 g/t Ag and 20.1 g/t Au (5,837 g/t AgEq) over a TW of 0.7m; and hole CS-22-158 with 1,140 g/t Ag and 6.65 g/t Au (1,671 g/t AgEq) over a TW of 1.5m, including 2,610 g/t Ag and 15.3 g/t Au (3,833 g/t AgEq) over a TW of 0.6m.
  • Starcore International Mines Ltd., announced that its Board of Directors approved a USD $2M exploration budget for its most prolific projects in Mexico. For its El Creston project, Sonora, the company has budgeted USD $500K to confirm the presence of a copper porphyry at depth. The program will include surveys, geophysical studies of magnetometry, and the development of new geological models from existing drillhole data; For its San Martin Mine, Querétaro, Starcore has budgeted USD $1M to search for the extension of the San Martin Breccia in the southwest and eastern part of the mine, as well as to confirm the geological potential of the north part of the concessions in the areas of Cerro Azul; and for new opportunities the company has allocated USD $500K such as California Au-Ag project, Durango, where the company has been invited to participate under a JV agreement. California project comprises 3,211 hectares which is part of the mineralization trend of the San Dimas (Tayoltita) District in Durango.

ON DEALS AND CORPORATE ISSUES

  • Elemental Royalties Corp., announced that Bear Creek Mining Corporation completed the acquisition of the Mercedes mine in Sonora from Equinox Gold Corp. Elemental holds an uncapped 1% Net Smelter Return (NSR) Royalty on the Mercedes Mine, payable from July 2022.
  • Fabled Silver Gold Corp., amended its option agreement with Golden Minerals Company with respect to the Santa Maria project in Chihuahua. Fabled is now requested to make the final payment of USD $2M previously due on December 4, 2022 as follow: USD $1M on December 4, 2022; USD $25K on March 31, 2023; USD $25K on June 30, 2023; USD $25K on September 30, 2023; and USD $25K on December 31, 2023. As consideration of the amendment, Fabled will issue to Golden on December 4, 2022, a number of common shares of Fabled that are equal to a value of USD $75K, at a price per share equal to the closing trading price of the shares on the TSX Venture Exchange on the trading day immediately prior to the date that such payment is made. 
  • Prismo Metals Inc., announced the appointment of its Director of Business Development: The company granted him 500K incentive stock options exercisable at a price of $0.15 per share before May 20, 2027. (Los Pavitos project, Sonora).
  • Riverside Resources Inc., and Hochschild Mining plc signed an option agreement valued at over USD $31M for la Union project, Sonora. On the Phase1 earn-in option, Hochschild can earn an undivided 51% interest by incurring USD $8M in exploration expenditures over 5 years. Upon completion of Phase 1 obligations, Hochschild can elect to form a 51:49 Joint Venture. On the Phase 2 earn-in option, Hochschild can elect to earn an additional 24% interest by incurring a further USD $3M in exploration expenditures and delivering a completed Feasibility Study (FS) over 3 years. Upon Hochschild completing the Phase 2 earn-in, Riverside will have the option to sell its interest in the project to Hochschild for USD $2M, while retaining a 1% net smelting royalty (NSR).

ON SOCIAL RESPONSIBILITY

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On the picture above, a hydrothermal breccia in a low sulphidation epithermal vein system in a prospect in Durango Mexico.  Photo by Miguel A Heredia.