The Mining and Exploration News in Mexico: Highlights on the Fourth Week of August, 2021.

Cockade and quartz blade textures

By Miguel A Heredia

During the 34th week of the year (August 23th to August 29th, 2021), at least 14 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, five informing on exploration results, two discussing social issues, one communicating production and financial results, one announcing financial topics, and one disclosing deal and corporate issues.  ON MEXICO ISSUES, no relevant news.  ON EXPLORATION, In Sonora, Benjamin Hill confirmed the presence of gold and copper mineralization at depth at its Sonora Gold project, and Tocvan provided an update of its phase II drilling program at El Pilar project. In Chihuahua, Kootenay informed about the discovery of a potential new high-grade zone at its Columba project. In Sinaloa, Vizsla announced that it has resumed drilling at its flagship Panuco project and released new exploration drill results from the step-out drilling at the Napoleon Corridor.  ON MINING, Mexus Gold announced that the activated carbon system at its Santa Elena mine in Sonora is working as planned to produce gold.  ON FINANCING, Alamos Gold declared quarterly dividends of USD $0.025 per common share and announced it repurchased 600K shares at a cost of USD $4.5M (Mulatos mine, Sonora).  ON RESOURCES AND DEVELOPMENT, Discovery presented Q2, 2021 financial results and provided an update of key activities for its flagship Cordero project in Chihuahua. Fabled reported drill results from its newly upgraded 14,200m drilling program at its Santa Maria project in Chihuahua and informed that one hole intersected multiple mineralized sheeted vein structure over a true width of 150m. GoGold released results from six holes drilled at El Orito Zone at its Los Ricos North project in Jalisco and reported the completion of an IP survey to map out the sulphide rich zone along strike and dip. Golden Tag finished a geological interpretation program in partnership with Orix Geoscience at its San Diego project located in Durango.  GR Silver completed an initial resource estimate at its Plomosas project in Sinaloa. ON DEALS AND CORPORATE ISSUES, Bacanora Lithium provided an update on the litigation with the Estate of Colin Orr-Ewing in regard to its challenge to the validity of the lithium royalty over the Sonora Lithium Project. ON SOCIAL RESPONSIBILITY, Grupo Mexico Foundation supports reforestation of protected natural areas in the country. La Cantera Desarrollos Mineros provided financial support for the construction of a medical appointment center in the community of Ojo de Agua in Guanajuato.

ON MEXICO ISSUES

  • No relevant news.

ON EXPLORATION

  • Benjamin Hill Mining Corp (BHM), confirmed the presence of gold and copper mineralization at depth from channel samples collected underground in the Guadalupe and Cascabel adits at its Sonora Gold project. Highlights of the underground  samples collected over 2m intervals in the Guadalupe adit include 9.6 g/t Au and 0.5% Cu; 8.4 g/t Au and 0.3% Cu; 0.4 g/t Au and 4.3% Cu; 0.3 g/t Au and 3.5% Cu; and 0.2 g/t Au and 2.1% Cu. Highlights of the underground  samples collected over 1.5m interval in the Cascabel adit include 7.7 g/t Au and 0.4% Cu; 2.2 g/t Au and 0.4% Cu; 2.2 g/t Au and 0.7% Cu; 1.5 g/t Au and 2.9% Cu ; 1.3 g/t Au and 2.5% Cu; and 0.8 g/t Au and 2.4% Cu. Highlights of composites of channel samples from the underground sampling were calculated and include 1.54 g/t Au, 0.41% Cu, and 27 g/t Ag over 14m; 1.82 g/t Au,  0.88% Cu, and 44 g/t Ag over 7.5m; and 0.83 g/t Au, 0.38% Cu, and 19 g/t Ag over 7.5m. “The results of the underground sampling program proves that surface gold and copper mineralization extends to depth and supports BHM´s model of a copper-gold epithermal system. BHM geologists have previously mapped copper-gold mineralized structures over 8km cumulative length often attaining widths of 10´s of meters. The results of the adits sampling work supports the rational that the mineralized structures are drill ready targets”.
  • Tocvan Ventures Corp., provided an update from its phase II drilling program at El Pilar project in Sonora. The company drilled 3,500m in 20 RC holes and reported that it was successful in three key target areas: The Main Zone expansion with 30m to the northwest and a total of 150m to the southeast. The most significant results was encountered in hole JES-21-38 which intersected 0.71 g/t Au and 2 g/t Ag (0.73 g/t AuEq) over 29m, including 2.6 g/t Au over 3.1m, including 1.9 g/t Au over 6.1m, and 0.56 g/t Au over 24.4m; the 4 Trench Zone, where it defined a new mineralized trend over 500m strike, parallel to the Main Zone. The most significant drill intersect was encountered in hole JES-21-53 with 1.1 g/t Au and 2 g/t Ag, including 2.4 g/t Au and 3 g/t Ag over 4.6m, including 4.6 g7t Au and 3 g7t Ag over 1.5m; and the Triple Vein Zone where one hole drilled intersected a narrow silver-rich zone with gold. Hole JES-21-56 intersected 0.57 g/t Au and 139 g/t Ag over 1.5m.
  • Kootenay Silver Inc., informed that it has completed its Phase 3 drilling program which consisted of 12 holes and announced the discovery of a potential new high-grade zone at its Columba project in Chihuahua. Hole CDH-21-101 intersected 459 g/t Ag over 1.6m, including 1,190 g/t Ag over 0.5m and 127 g/t Ag over 1.1m. The company is planning to design a drill program to drill test this new area with high grade silver potential.
  • Vizsla Silver Corp., announced that it has resumed drilling at its flagship Panuco project in Sinaloa due to an increase of COVID-19 risk in the local community. The company expects to return to full capacity with ten rigs running at the project. Vizsla also reported new exploration drill results from the ongoing step-out drilling at the Napoleon Vein Corridor.  Highlights of the ongoing drilling on Napoleon North and South include hole NP-21-170 collared at Papayo Zone with 825 g/t Ag, 7.95 g/t Au, 0.6% Pb, and 1.4% Zn (1,564 g/t AgEq) over 11.4m including 11,431 g/t Ag, 100.5 g/ t Au, 3.6% Pb, and 9.9% Zn (20,413 g/t AgEq) over 0.7m on Josephine Vein, and 104 g/t Ag, 1.25 g/t Au, 2.2% Pb, and 5% Zn (382 g/t AgEq) over 3.3m on Napoleon Vein; hole NP-21-150 collared at Ojo de Agua Zone with 34 g/t Ag and 3.95 g/t Au, (401 g/t AgEq) over 2.9m; and hole NP-21-153 with 55 g/t Ag and 6.87 g/t Au (697 g/t AgEq) over 1.7m. Drilling has currently extended the mineralized footprint for over 2.5Km along the Napoleon Vein Corridor.

ON MINING

  • Mexus Gold US announced that the activated carbon system at its Santa Elena mine in Sonora is working as planned to produce gold. “Mexus is enlarging the heap leach pad and has purchased the liner and seaming equipment to complete the job. Increasing the pad will allow Mexus to run 24 hours a day 7 days a week at 12 liters per second representing a 110% increase over current flows”.

ON FINANCING

  • Alamos Gold Inc., declared quarterly dividends of USD $0.025 per common share and announced it repurchased 600K shares at a cost of USD $4.5M or USD $7.50 per share, under its Normal Course Issuer Bid thus far in August. The dividend is payable on September 30, 2021 to shareholders of record as of the close of business on September 16, 2021. (Mulatos mine, Sonora).

ON RESOURCES AND DEVELOPMENT

  • Discovery Silver Corp., presented Q2, 2021 financial results and provided an update of key activities for its flagship Cordero project in Chihuahua. The company reported cash and cash equivalents and short term investment balance of CAD $88M. The Company’s cash position as of the date of this release is approximately CAD $84M. Discovery also reported results from its ongoing Phase 2 drilling campaign focused on reserve definition, resource expansion and high-grade vein delineation. Highlights of the reserve definition and resource expansion program include hole C21-481 with 75 g/t Ag, 0.45 g/t Au, 1.1% Pb, and 1% Zn (194 g/t AgEq) over 217.3m, including 99 g/t Ag, 0.54 g/t Au, 1.5% Pb, and 1.4% Zn (260 g/t AgEq) over 81.9m; hole C21-479 with 78 g/t Ag, 0.11 g/t Au, 1.7% Pb, and 2.8% Zn (260 g/t AgEq) over 132.6m, including 110 g/t Ag, 0.1 g/t Au, 2.4% Pb, and 5.9% Zn (448 g/t AgEq) over 46.3m, and 194 g/t Ag, 0.12 g/t Au, 4.2% Pb, and 9.6% Zn (748 g/t AgEq) over 21.5m; hole C21-476 with  51 g/t Ag, 0.09 g/t Au, 1.2% Pb, and 2.2% Zn (192 g/t AgEq) over 86.2m, including 97 g7t Ag, 0.16 g7t Au, 2.3% Pb, and 4.3% Zn (372 g/t AgEq) over 36.5m; hole C21-417 with 69 g/t Ag, 0.11 g/t Au, 0.7% Pb, and 3.7% Zn (258 g/t AgEq) over 65.9m; and hole C20-405 with 65 g/t Ag, 0.05 g/t Au, 1.2% Pb, and 1.3% Zn (165 g/t AgEq) over 128.2m, including 109 g/t Ag, 0.06% Au, 2% Pb, and 1.9% Zn (263 g/t AgEq) over 26.1m. Results from this bulk-tonnage drilling “has expanded the higher-grade bulk-tonnage domain by more than 250 m northeast, along strike in the South Corridor. This domain has now been defined over a strike length of approximately 1.4 km and drilled to a depth of 500 m and remains open below this”. Highlights from the high grade vein drilling on Josefina Vein Trend include hole C21-421 with 520 g/t Ag, 0.11 g/t Au, 3% Pb, and 9.8% Zn (1,043 g/t AgEq) over 4.1m; hole C21-457 with 1,570 g/t Ag, 16.25 g/t Au, 7% Pb, and 19% Zn (3,934 g/t AgEq) over 1.1m; and hole C21-435 with 1,960 g/t Ag,  0.32 g/t Au, 15.4% Pb, and 21.6% Zn (3,424 g/t AgEq) over 1.1m. Highlights from the high grade vein drilling on Todos Santos Vein Trend include hole C20-404 with 163 g/t Ag, 0.17 g/t Au, 2.8% Pb, and 3.1% Zn (403 g/t AgEq) over 2.2m; hole C21-409 with 160 g/t Ag, 0.39 g/t Au, 3.8% Pb, and 6.4% Zn (589 g/t AgEq) over 1m; and hole C21-418 with 160 g/t Ag, 0.27 g/t Au, 3.3% Pb, and 6.3% Zn (558 g/t AgEq) over 2.5m. The company also reported that its PEA study, which aimed to deliver a technically robust study that outlines one of the largest producing primary silver operations in the industry, is progressing well and announced that it is expected to be completed and delivered in Q4, 2021.
  • Fabled Silver Gold Corp., reported drill results from its newly upgraded 14,200m drilling program at its Santa Maria project in Chihuahua and informed that one of these holes intersected multiple mineralized sheeted vein structure over a true width of 150m. The table below shows the assay results from drill hole SM-20-25:

In addition, hole SM20-26 encountered 9 gold bearing veins and veinlets varying from 0.2 to 6m wide which returned grades greater than 0.5 g/t Au, while hole SM20-27 encountered only 3 veins and veinlets grading greater than 0.5 g/t Au.

  • GoGold Resources inc., released results from six holes drilled at El Orito Zone in its Los Ricos North project in Jalisco. The most significant drill intersect was from hole LRGO-21-062 which intersected 22 g/t Ag, 0.04 g/t Au, 0.09% Cu, 0.91% Pb, and 1.37% Zn (101 g/t AgEq) over 73.7m, including 73 g/t Ag, 0.07 g/t Au, 0.3% Cu, 5.5% Pb, and 3.1% Zn (339 g/t AgEq) over 5m, including 132 g/t Ag, 0.08 g/t Au, 1.08% Cu, 22.5% Pb, and 13% Zn (1,197 g/t AgEq) over 1.2m. The company also completed an IP survey aimed to map out the sulphide rich zone along strike and down dip. Drill results at El Orito Zone indicate that mineralization averages 30m in width for more than 700m in strike length and up to approximately 300 m in vertical depth from surface and is open in all directions.
  • Golden Tag Resources Ltd., finished a geological interpretation program in partnership with Orix Geoscience 2018 Inc., at its San Diego project located in Durango. This geological interpretation included a review of the lithology, alteration, structure and assays database to develop a current 3D geological model to better define locations of broad zones of skarn mineralization. The study determined that mineralization is concentrated at the Central Diorite contact and is associated with the development of both brown and green garnet skarns. “These broad zones of mineralized skarn are open to the north and at depth within the diorite and marble, as well as to the northwest and southeast of the currently modeled Fernandez Zone. Future drilling will be planned to drill these target areas.
  • GR Silver Mining Ltd., completed an initial resource estimate at its Plomosas project in Sinaloa. GR Silver reported indicated resources of 2.4M tonnes of 0.68 g/t Au, 44 g/t Ag, 0.9% Pb, and 1.2% Zn (133 g/t AgEq) for a total of 53K Oz Au, 3.4M Oz Ag, 48.1M Lb Pb, and 72.8M Lb Zn, and inferred resources of 5.8M tonnes of 0.46 g/t Au, 46 g/t Ag, 0.9% Pb, and 1.2% Zn (113 g/t AgEq) for a total of 85K Oz Au, 8.6M Oz Ag, 115.7M Lb Pb, and 148.6M Lb Zn.

ON DEALS AND CORPORATE ISSUES

  • Bacanora Lithium plc., provided an update on the litigation with the Estate of Colin Orr-Ewing in regard to its challenge to the validity of the lithium royalty over the Sonora Lithium Project. The Alberta Court has now issued its judgement that found in favor of the Estate of Colin Orr-Ewing. Bacanora intends to appeal this judgement on a point of law and maintains that the royalty is invalid on the grounds of misrepresentation and lack of consideration and intends to exhaust all legal avenues on behalf of all its shareholders.

ON SOCIAL RESPONSIBILITY

  • Grupo Mexico Foundation supports reforestation of protected natural areas in the country. The company has planted 82,340 trees and shrubs of 25 species in 10 Protected Natural Areas of Mexico City.
  • La Cantera Desarrollos Mineros provided financial support to the community of Ojo de Agua, Guanajuato for the construction of a medical appointment center in benefit of approximately 60 inhabitants.

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, cockade and quartz blade textures in an intermediate sulphidation epithermal vein system from a prospect in Chihuahua, Mexico.  Photo by Miguel A Heredia.

The Mining and Exploration News in Mexico: Highlights on the Fifth Week of July, 2021.

Quartz vein displaying boiling texture

By Miguel A Heredia

During the 30th week of the year (July 26th to August 1st, 2021), at least 28 press releases were announced by companies working in Mexico and 3 news published by the media, with eight communicating production and financial results, eight informing on exploration results, five disclosing deal and corporate issues, four reporting on resources and developments of their properties, two announcing financial topics, two commenting on Mexican issues and two discussing social issues.  ON MEXICO ISSUES, Equinox announced that the illegal blockade at its Los Filos mine in Guerrero has been lifted. According to information from the Mexican Mining Chamber (CAMIMEX), mining companies working in Mexico have a sustainable commitment with the environment.   ON EXPLORATION, In Sonora, Tocvan and its partner Colibri reported results from its ongoing drilling program at the Pilar project, and Riverside announced results from the first hole testing the Santa Rosalia target at its the Cuarentas project. In Sinaloa, Vizsla released new results from its ongoing 100,000m drilling program at its Panuco project. In Durango, Canasil informed that it has completed three holes at its Nora project and Mithril provided a report of the exploration activities carried out at its Copalquin project during the period Q2, 2021.  In Puebla, Almaden commenced prospect drilling at its Ixtaca property. ON MINING, Mexus announced that mining continues at the Vein 2 Area within its Santa Elena mine in Sonora. Santacruz reported Q2, 2021 production results from their Zimapan and Rosario mines in Hidalgo and San Luis Potosi respectively. Alamos Gold presented Q2, 2021 production and financial results from its Mulatos mine in Sonora.  Capstone announced Q2, 2021 production and financial results from its Cozamine mine in Zacatecas. Agnico Eagle reported Q2, 2021 from their Mexican operations in Chihuahua and Sonora. Coeur presented Q2, 2021 production and financial results from its Palmarejo mine in Chihuahua. Gold Resource announced Q2, 2021 production and financial results from its Arista mine in Oaxaca. Mag Silver and its JV partner Fresnillo plc reported Q2, 2021 production results from its Juanicipio project in Zacatecas. ON FINANCING, Gold Resource declared quarterly dividends of $0.01 per common share to shareholders for the period Q2, 2021 (Arista mine, Oaxaca). Guanajuato Silver announced it has drawn down USD $7.5M from its loan facility (El Cubo mine, Guanajuato). ON RESOURCES AND DEVELOPMENT, Chesapeake released results of its PEA for the Phase 1 mine plan of its Metates project, Durango. Fabled reported drill results and expanded to 14,200m its ongoing drilling program at the Santa Maria project, Chihuahua. GoGold continued releasing drill results from the ongoing drilling campaign at its Los Ricos North project in Jalisco.   Golden Tag filed a drill permit to quadruple the number of drill pads at its San Diego project, Durango.  ON DEALS AND CORPORATE ISSUES, Commander optioned the Pedro project, Durango to Southern Empire. Vizsla announced the appointment of its VP of Business Development and Strategy (Panuco project, Sinaloa). SilverCrest announced the appointment of its VP of Technical Services (Las Chispas, Sonora). Altaley launched its new corporate website (Campo Morado mine, Guerrero). ON SOCIAL RESPONSIBILITY, Grupo Mexico delivered 9,000 trees for forestry programs to the Municipality of San Francisco del Rincón, Aguascalientes. Fresnillo plc and Industrias Peñoles have implemented strategies for the care and management of water for their operational processes in all their mines and plants.

ON MEXICO ISSUES

  • Equinox Gold Corp., announced that the illegal blockade at its Los Filos mine, Guerrero has been lifted, access to the mine has been restored and Los Filos mine has resumed operations.  There are some members of Xochipala community still camped near the Guadalupe and Bermejal open pits but Equinox´s representatives are in talks with government and Xochipala representatives to achieve resolution.
  • According to information from the Mexican Mining Chamber (CAMIMEX), mining companies working in Mexico have a sustainable commitment. In 2020 more than MXP $7,450M was invested in the country to take care of the environment such as efficient water management, reforestation, and conservation of the flora and fauna species as part of its sustainability policies and in compliance with Mexican legislation.

ON EXPLORATION

  • Tocvan Ventures Corp. and its partner Colibri Resources Corporation reported results from its 20-holes, 2500 m Phase 2 RC program at the Pilar project in Sonora. Significant drill results were encountered in holes JES-21-53 with 1.09 g/t Au and 2 g/t Ag (1.11 g/t AuEq) over 15.25m, including 2.42 g/t Au and 3 g/t Ag (2.45 g/t AuEq) over 4.58m, including 4.57 g/t Au and 3 g/t Ag (4.65 g/t AuEq) over 1.53m; hole JES-21-52 with 0.63 g/t Au and 47 g/t Ag (1.13 g/t AuEq) over 3.05m, plus 0.49 g/t Au and 31 g/t Ag (0.81 g/t AuEq) over 3.06m; hole JES-21-55 with 0.43 g/t Au and 4 g/t Ag (0.47 g/t AuEq) over 10.67m, including 1.16 g/t Au and 7 g/t Ag (1.24 g/t AuEq) over 1.52m, plus 1.2 g/t Au over 1.53m; and hole JES-21-50 with 0.96 g/t Au and 2 g/t Ag (0.99 g/t AuEq) over 39.65m, including 3.04 g/t Au and 6 g/t Ag (3.1 g/t AuEq) over 12.2m, including 14.55 g/t Au and 11 g/t Ag (14.67 g/t AuEq) over 1.53m. “The drilling appears to be defining a footprint of mineralization approximately 500m X 500m with expansion potential to the southeast”.
  • Riverside Resources Inc., announced results from the first drill hole testing the Santa Rosalia target at its the Cuarentas project. Hole LC20-010 intersected 0.36 g/t Au over 3.15m, including 0.88 g/t Au over 0.7m, plus 0.58 g/t Au over 1.55m, including 1.05 g/t Au over 0.65m. “The Cuarentas epithermal vein drilled mineralized area intersected at surface and appears to be the upper part of a copper-gold porphyry system that is potentially responsible for the extensive >6km area including sericite and pyrophyllite alteration”. Riverside is highlighting the possibility of a feeder system of intermediate sulphidation along the Testerazo fault corridor.
  • Vizsla Silver Corp., released new results from its ongoing 100,000m drilling program at its Panuco project. These new results are from ten holes completed at Cordon del Oro area, on which nine out of the ten holes intersected a new east-west trending vein within the San Antonio Vein corridor. The most significant drill intercepts were encountered in holes CO-21-44 with 6.64 g/t Au and 705 g/t Ag (1,283 g/t AgEq) over a true width (TW) of 2.07m, including 14.65 g/t Au and 1,365 g/t Ag (2,649 g/t AgEq) over a TW of 0.78m; and hole CO-21-50 with 2.59 g/t Au and 747 g/t AgEq (943 g/t AgEq) over a TW of 2.17m, including 4.23 g/t Au and 1,230 g/t Ag (1,551 g/t AgEq) over a TW of 1.18m.  Drilling results have delineated near-surface mineralization zone of 200m along strike and 100m down dip, and remain open in all directions. Next step is to expand this new zone both at depth and laterally.
  • Canasil Resources Inc., informed that it has completed three holes and a fourth is on progress at its Nora project in Durango. All holes were collared below and between high-grade gold and silver intercepts from the 2020 drill holes NRC-20-04 and NRC-20-06 on the Candy vein structure. A total of 790 metres of core drilling has been completed since the start of the program in early July 2021. 110 core samples from holes NRC-21-09 y NRC-21-10 have been already shipped to the lab for assays.
  • Mithril Resources Ltd., provided a report of the exploration activities carried out at its Copalquin project during the period Q2, 2021. Highlights include a) drilling at El Refugio target has extended the known mineralization to 700m X 350m; the discovery of the “77 Clavo” with bonanzas grades  such as those encountered in hole CDH-077 with 80.3 g/t Au and 705 g/t Ag over a length of 8.26m, including 106 g/t Au and 913 g/t Ag over a length of 6.26m, including 837 g/t Au and 6,680 g/t Ag over a lengths of 0.77m; b) Continue expansion of the El Refugio Clavo with multiple high-grade intercepts including hole CDH-075 with 13.8 g/t Au and 83 g/t Ag over a length of 2.70m, plus 10.9 g/t Au and 364 g/t Ag over a length of 4.25m; hole CDH-063 with 5.32 g/t Au and 105 g7t Ag over a length of 83; hole CDH-062 with 4.12 g/t Au and 107 g/t Ag over a length of 4.82m; and hole 2.34 g/t Au and 144 g/t Ag over a length of 7.60m; c) Confirmation of the El Cometa bonanza grades with twin of historic drill hole CDH-072 which intersected 74 g/t Au and 841 g/t Ag over a length of 6.8m, including 235 g/t Au and 2,554 g/t Ag over a length of 2.1m; d) Results from 240 soil samples collected at El Refugio Zone have extended the target zone for drilling a full 1.3Km west from the currently westernmost drill holes; and e) the company is preparing a maiden JORC resource estimate for El Refugio/El Cometa Zones and is expected to be completed by H2, 2021.
  • Almaden Minerals ltd., commenced prospect drilling at its Ixtaca property in Puebla. Focus of the drilling program is the Southeast Alteration Zone (SE Alteration Zone) located approximately 1km from the Ixtaca deposit. The SE Alteration Zone measures about 1.5Km x 1km and comprises clay-altered volcanic rocks with clusters of anomalies identified from a hyperspectral survey, including kaolinite, alunite, and buddingtonite.  Work exploration of this area has also included geophysics and geological mapping.

ON MINING

  • Mexus Gold US announced that mining continues at the Vein 2 Area within its Santa Elena mine in Sonora.  “Mining is currently being developed at the quartz vein with 1 to 1.5 meter with some wider pocket zones. Mexus has found 10 g/t gold zones randomly with notable oxide coloring due to former sulphides. Thrust fault shear mineral is being worked around it and only high grade quartz vein is loaded and hauled”. Pregnant solution from the heap leach pad is ranging from 0.3 to 1.7 g/t Au and is treated by Carbon absorption. One ton of loaded carbon is en route to Chicago for processing for final sale which will allow Mexus to increase production on a weekly basis.
  • Santacruz Silver Mining Ltd., reported Q2, 2021 production results from their Zimapan and Rosario mines in Hidalgo and San Luis Potosi respectively. At Zimapan, Hidalgo, the company processed 155,047 tonnes of 84 g/t Ag, 0.6% Pb, 2.5% Zn, and 0.38% Cu (202 g/t AgEq) to produce 310.9K Oz Ag, 0.67M Lb Pb, 6.38M Lb Zn, and 1.08M Lb Cu  (757.9K Oz AgEq). At Rosario mine, San Luis Potosi, Santacruz processed 16,917 tonnes of 45 g/t Ag, 0.16 g/t Au, 0.2% Pb, and 1.4% Zn (104 g/t AgEq) to produce 18.49K Oz Ag, 53 Oz Au, 69.4K Lb Pb, and 394.2K Lb Zn (41.1K Oz AgEq).
  • Alamos Gold Inc., presented Q2, 2021 production and financial results from its Mulatos mine in Sonora. It produced 35.9K Oz Au and sold 28.67K Oz Au at a cost of USD $1,395 and USD $893 per Oz Au produced respectively, and an AISC of USD $1,144 per Oz Au sold. Alamos also provided a 2021 guidance and expects to produce between 150K-160K Oz Au at total and AISC of USD $840-890 and USD $1,060-1,110 per Oz Au respectively.
  • Capstone Mining Corp., announced Q2, 2021 production and financial results from its Cozamine mine in Zacatecas. The company mined 332K tonnes and milled 348K tonnes of 1.86% Cu, 0.5% Zn, and 40 g/t Ag with metallurgical recoveries of 96.3%, 46.7%, and 82.1% respectively, to produce 13.8M Lb Cu, 1.88M Lb Zn, and 364K Oz Ag. Cash cost was USD $1/lb Cu produced. Cozamine reported revenues for USD $68.6M and an adjusted EBIDTA of USD $50M.
  • Agnico Eagle Mines Limited reported Q2, 2021 from their Mexican operations in Chihuahua and Sonora. At Pinos Altos, Chihuahua, Agnico processed 521K tonnes of 2.07 g/t Au to produce 32.6K Oz Au and 331K Oz Ag at a production and total cash costs of USD $1,106 and USD $849 per Oz Au produced respectively. At Creston-Mascota, Chihuahua, the company produced 3.23K Oz Au and 41K Oz Ag at production and total cash costs of USD $608 and USD $341 per Oz Au produced respectively from residual leaching . At La India, Sonora, it processed 1.745M tonnes of 0.46 g/t Au to produce 4.7K Oz Au and 7K Oz Ag at costs of USD $1,390 and USD $1,350 per Oz Au produced respectively.
  • Coeur Mining Inc., presented Q2, 2021 production and financial results from its Palmarejo mine in Chihuahua. The company milled 517,373 tonnes of 1.8 g/t Au and 122 g/t Ag with metallurgical recoveries of 92.4% and 81.9% respectively to produce 27.6K Oz Au and 1.67M Oz Ag. Coeur sold 30.5K Oz Au and 1.64M Oz Ag at an adjusted cost of USD $662 and USD $13.34 per Oz Au sold and Oz Ag sold respectively. The company reported a cash flow of USD $33.4M and a free cash flow of USD $23.6M.
  • Gold Resource Corporation announced Q2, 2021 production and financial results from its Arista mine in Oaxaca. The company milled 129.6K tonnes of 1.93 g/t Au, 77 g/t Ag, 0.4% Cu, 1.6% Pb, and 3.6% Zn at total cash and AISC of USD $713 and USD $1,280 respectively to produce 5,697 Oz Au, 270.3K Oz Ag, 817.6K Lb Cu, 2.72M Lb Pb, and 7.15M Lb Zn (9,685 Oz AuEq). Gold Resource reported an EBIDTA of USD $7.4M and an operating cash flow of USD $9.3M.
  • Mag Silver Corp., and its JV partner Fresnillo plc reported Q2, 2021 production results from its Juanicipio project in Zacatecas. Mag Silver (44%) and Fresnillo plc (56%) processed 44,435 tonnes of underground development material to produce 434.9K Oz Ag and 787 Oz Au of which 191.35K Oz Ag and 346 Oz Au are attributable to Mag Silver. The associated lead and zinc production will be reported with MAG’s second quarter filings.

ON FINANCING

  • Gold Resource Corporation declared quarterly dividends of $0.01 per common share to shareholders for the period Q2, 2021 payable on September 30, 2021 (Arista mine, Oaxaca).
  • Guanajuato Silver Company Ltd., announced it has drawn down USD $7.5M from its loan facility with trading firm OCIM Group. This financing will be used to restarts its El Cubo mine and mill complex in Guanajuato.

ON RESOURCES AND DEVELOPMENT

  • Chesapeake Gold Corp., released results of its PEA for the Phase 1 mine plan of its Metates project, Durango. The PEA demonstrates robust project economics such as Pre-Tax NPV of USD $1.14B and 35% IRR at USD $1,600 per Oz Au and USD $22 per Oz Ag at a 5% discount rate, over a 31-year mine life. The PEA includes a revised mineral resource estimate for the Metates Project and replaces the mineral reserve estimate contained in the Company’s updated preliminary feasibility study dated April 29, 2016. The measured and indicated mineral resource is 1.3 billion tonnes at 0.47 g/t gold and 12.9 g/t silver for 19.8M Oz Au and 542M Oz Ag. Inferred mineral resource is an additional 62.2M tonnes at 0.32g/t gold and 9.0 g/t silver for 640K Oz Au and 18M Oz Ag. The PEA reports an average annual production of over 110K Oz Au and 2.5M Oz Ag during the first 15 years at AISC of USD $748 per Oz Au produced.
  • Fabled Silver Gold Corp., reported drill results and announced expansion of its ongoing drilling program at the Santa Maria project, Chihuahua to 14,200m. Hole SM20-21 intersected 0.16 g/t Au, 7 g/t Ag, 0.4% Pb, 0.1% Zn, and 0.01% Cu (15 g/t Ag) over 18.9m, including 0.62 g/t Au, 16 g/t Ag, 0.2% Pb, 0.5% Zn, and 0.01% Cu (63 g/t AgEq) over 2.10m; and hole SM20-22 intersected 4.95 g/t Au, 13 g/t Ag, 0.1% Pb, 0.3% Zn, and 0.02% Cu (268 g/t AgEq) over 14.4m, including 7.17 g/t Au, 16 g/t Ag, 0.1% Pb, 0.3% Zn, and 0.03% Cu (385 g/t AgEq) over 9.5m, plus 0.94 g/t Au, 59 g/t Ag, 0.5% Pb, 0.4% Zn, and 0.04% Cu (107 g/t AgEq) over 3.1m, including 1.05 g/t Au, 66 g/t Ag, 0.8% Pb, and 0.04% Cu (120 g/t AgEq) over 1m, including 1.56 g/t Au, 78 g/t Ag, and 0.07% Cu (158 g/t AgEq) over 0.9m. The company expanded the present drilling by 5,000m to a total of 14,200m to properly evaluate the mineralization at the Santa Maria property.
  • GoGold Resources Inc., continued released results from five holes drilled at its Los Ricos North project in Jalisco. The best drill intercept was encountered in hole LRGF-21.052 with 0.31 g/t Au, 113 g/t Ag (1.82 g/t AuEq or 136 g/t AgEq) over a length of 51.3m, including 0.96 g/t Au, 235 g/t Ag (4.1 g/t AuEq or 307 g/t AgEq) over a length of 11.4m, including 2.78 g/t Au and 1,367 g/t Ag (21.01 g/t AuEq or 1,576 g/t AgEq) over a length of 0.9m, including  2.65 g/t Au and 336 g/t Ag (7.13 g/t AuEq or 535 g/t AgEq) over a length of 3m, including 9.63 g/t Au and 655 g/t Ag (18.35 g/t AuEq or 1,376 g/t AgEq) over a length of 0.7m, plus 0.18 g/t Au and 169 g/t Ag (2.44 g/t AuEq or 183 g/t AgEq) over a length of 1.5m. Another significant drill intercept was encountered in hole LRGF-21-054 with 0.20 g/t Au and 77 g/t Ag (1.24 g/t AuEq or 93 g/t AgEq) over a length of 63.6m, including 1.1 g/t Au and 401 g/t Ag (6.46 g/t AuEq or 484 g/t AgEq) over a length of 5.6m, including 1.52 g/t Au and 539 g/t Ag (8.71 g/t AuEq or 653 g/t AgEq) over a length of 4m, including 1.96 g/t Au and 784 g/t Ag (12.41 g/t AuEq or 931 g/t AgEq) over a length of 1m.
  • Golden Tag Resources Ltd., filed with SEMARNAT a drill permit to quadruple the number of drill pads from 14 to 58 at its San Diego project, Durango. The drill permit is expected to be obtained during Q3, 2021.

ON DEALS AND CORPORATE ISSUES

  • Commander Resources Ltd., granted an option to Southern Empire Resources Corp. to acquire a 100% interest in the Pedro project, Durango. Pedro is an epithermal gold project with potential for both bulk mineable and bonanza-grade vein deposit and comprises 1,750 Ha in three mineral claims. Total consideration for the option is CDN $700K as follow: CDN $25K and 100K shares on completion of a definitive agreement, CDN $125K on the first agreement anniversary, CDN $250K on the second anniversary, and CDN $300K on the third anniversary.  Southern Empire also must to complete CDN $1.5M in exploration expenditures, including CDN $400K within the first year of the agreement. Commander will retain a 2% NSR royalty with no buydown provision.
  • Vizsla Silver Corp., announced the appointment of its VP of Business Development and Strategy (Panuco project, Sinaloa).
  • SilverCrest Metals Inc., announced the appointment of its VP of Technical Services (Las Chispas, Sonora).
  • Altaley Mining Corporation launched its completely renewed corporate website with modern design to facilitate the access to its information (Campo Morado mine, Guerrero).

ON SOCIAL RESPONSIBILITY

  • Grupo Mexico delivered 9,000 trees for forestry program to the Municipality of San Francisco del Rincón, Aguascalientes. This program called “Mexicanos Sembrando” is one of the initiatives that have been generated to take care of the environment.
  • Fresnillo plc and Industrias Peñoles S.A.B. de C.V., have implemented strategies for the care and management of water for their operational processes in all their mines and plants. Both Peñoles and Fresnillo plc collaborate with the communities with campaigns to raise awareness about the use and conservation of the resource.  Likewise, they support the human right to access to water in nearby towns through the service of pipes and support the population with rainwater collectors. In the same way, Peñoles participates in community projects such as the creation of water wells in different localities of Guerrero, Durango, Sonora and Chihuahua.

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 vein displaying boiling texture in a low sulphidation epithermal vein system from a prospect in San Luis Potosi, Mexico.  Photo by Miguel A Heredia.

The Mining and Exploration News in Mexico: Highlights on the Fourth Week of July, 2021

By Jorge Cirett

During the 29th week of the year (July 19th to July 25th, 2021), at least 19 press releases were announced by companies working in Mexico. To note, two companies posted exploration advances on their properties, two on quarterly reports and one in reopening plans, two on financing news, five more on project development or resource definition and two posted on deals or corporate issues. ON MEXICO ISSUES, no relevant news. ON EXPLORATION, in Sonora, Silver Spruce added a second rig to Drilling at El Diamante. In Chihuahua, Mammoth Resources informed on drill targeting at Tenoriba.  ON MINING, Fortuna Silver and Excellon Resources released Q2 2021 reports. Americas Gold and Silver updated on the re-opening plan at its Cosalá operations. ON FINANCING, Altaley Mining executed a 12 M loan agreement for the development of Tahuehueto. ON RESOURCES AND DEVELOPMENT, Mexican Gold Mining continues work on Cerro Las Minitas PEA. Sonoro Gold released results from surface rock chip sampling at Cerro Caliche. Southern Silver Exploration reported diamond drill results from Cerro Las Minitas. GoGold Resources released drilling results from Los Ricos North.  ON DEALS AND CORPORATE ISSUES, Sierra Madre Gold and Silver signed an option agreement on the acquisition of the La Tigra project in Nayarit. Vizsla Silver is to exercise the option to acquire 100% of the Panuco-Copala district in Sinaloa.  ON SOCIAL RESPONSIBILITY, Peñoles and Fresnillo PLC informed on the several projects that the companies provide for the education of young people on several areas of Mexico, especially in digital platforms. Conalep and the New Mexico Institute of Mining signed an agreement to enhance the learning of students across the borders.

ON MEXICO ISSUES

  • No Relevant News.

ON EXPLORATION

  • Mammoth Resources Corp. informed on drill targeting activities at Tenoriba, in Chihuahua. “The Company has extended drill targets an additional 1.7 kilometres (km), for a total of over 4.0 km from its previously announced initial 2.4 km of the 3-dimensional (3D) modelling of its infill, Induced Polarization/Magnetometer (IP/Mag) geophysical survey”. Work in the project by previous operators, Mammoth and Centerra includes over 6,000 soil samples, more than 750 rock chip samples, 151 m of surface channel samples, 26 diamond drill holes, IP and magnetic geophysical surveys, mapping, and spectral identification of alteration minerals.
  • Silver Spruce Resources Inc. is to continue its phase 1 reverse circulation drilling at El Mezquite in Sonora. Seven holes have been already completed, and a second rig has been added to the property to complete the 2,475 m of drilling. “The Phase 1 RC program comprises 20 holes with a combined depth of 2,475 metres (950 metres completed) and will utilize eight drill pad locations focused around a 400m x 600m area with elevated precious metal values to 3.41 g/t Au and 387 g/t Ag”.

ON MINING

  • Fortuna Silver Mines Inc. reported production results for the second quarter 2021. At its San José mine in Oaxaca, 1.62 M Oz Ag, 10,266 Oz Au were produced from ore averaging 205 gpt Ag, 1.30 gpt Au. Production and cost guidance for 2021 is 5.8-6.5 M Oz Ag, 38-42 K Oz Au at an AISC of US$12.2-14.5 per Oz AgEq.
  • Excellon Resources Inc. announced Q2 2021 production results from its Platosa mine in Durango. A total of 21.8 K tonnes were mined, and 21.6 K tonnes were milled @ 489 gpt Ag, 5.14% Pb, 6.48% Zn, recovering 87.0% Ag, 78.6% Pb, 79.4% Zn, to produce 296 K Oz Ag, 1.93 M Lb Pb, 2.46 M Lb Zn.
  • Americas Gold and Silver Corp. provided an update on the re-opening plan of its Cosalá operations in Sinaloa. The Company and Government Labour inspectors jointly visited the mine and mill and both appear in good condition. “Mexican government inspectors from the Mexican Ministry of Labour will be in Cosalá this week to review the re‐start plans, which will allow the Company to begin recalling employees immediately following the completion of the inspection assuming compliance with the terms of the July 6, 2021 agreement“. The company expects the mine and the mill to be operating by the end of July, and the operation also has 70 K tonnes of ore stockpiled and ready to process.

ON FINANCING

  • Altaley Mining Corp. executed a US$12 M loan facility agreement with Accendo Banco S.A. Institución de Banca Múltiple, to complete the final part of it’s previously announced US$25 M Accendo syndicate funding plan to complete the construction and ramp-up of its Tahuehueto project in Durango (Campo Morado, Guerrero).
  • Zacatecas Silver Corp. announced that its common shares are eligible for electronic clearing and settlement through the Depositary Trust Co. in the United States. “DTC is a subsidiary of the Depository Trust & Clearing Corporation, a U.S. company that manages the electronic clearing and settlement of publicly traded companies. Securities that are eligible to be electronically cleared and settled through DTC are considered to be “DTC eligible” (Zacatecas Silver, Zacatecas).

ON RESOURCES AND DEVELOPMENT

  • Mexican Gold Mining Corp. announced work continues to produce the PEA on its Las Minas project in Veracruz, within three weeks.
  • Sonoro Gold Corp. reported assay results from surface sampling at its Cerro Caliche property in Sonora. With 1,292 soil and rock samples collected, a 600 m southern extension and a 750 m extension were confirmed on the El Colorado-La Ventana and the Buena Suerte-San Quintin corridors, with 23.7 m @ 1.7 gpt Au (including 5.5 m @ 6.0 gpt Au) in the former and 52.6 m @ 0.2 gpt Au in the latter.
  • Southern Silver Exploration Corp. reported diamond hole drilling results from its Cerro Las Minitas project in Durango. Highlighted true width intervals comprise 1.4 m @ 719 gpt Ag, 14.2% Pb, 16.0% Zn; 0.4 m @ 541 gpt Ag, 0.1 gpt Au, 8.8% Pb, 4.0% Zn in the South Skarn target, and 0.5 m @ 452 gpt Ag, 0.5 gpt Au, 2.8% Pb, 0.6% Zn; 0.5 m @ 312 gpt Ag, 0.12 gpt Au, 2.8% Pb, 0.6% Zn in the Huizache chimney in the Mina La Bocona area. “Current modelling has identified three panels of mineralization at the South Skarn target, the largest of which can now be traced laterally for approximately 400 metres and up to 580 metres down-dip”.
  • GoGold Resources Inc. released results of eight diamond drill holes from El Orito area in the Los Ricos North project in Jalisco. Highlighted core length intervals comprise 41.2 m @ 10 gpt Ag, 0.01 gpt Au, 0.06% Cu, 0.3% Pb, 2.0% Zn; 33.3 m @ 19 gpt Ag, 0.03 gpt Au, 0.08% Cu, 1.1% Pb, 1.7% Zn; 13.0 m @ 30 gpt Ag, 0.02 gpt Au, 0.22% Cu, 0.3% Pb, 1.1% Zn; 3.0 m @ 19 gpt Ag, 0.02 gpt Au, 0.34% Cu, 1.3% Pb, 1.6% Zn; 18.0 m @ 51 gpt Ag, 0.09 gpt Au, 0.06% Cu, 0.4% Pb (including 1.9 m @ 230 gpt Ag, 0.34 gpt Au, 0.23% Cu, 1.0% Pb; 54.3 m @ 97 gpt Ag, 0.12 gpt Au, 0.70% Cu, 2.9% Pb, 5.4% Zn; 38.1 m @ 32 gpt Ag, 0.03 gpt Au, 0.17% Cu, 1.9% Pb, 2.7% Zn; 69.1 m @ 26 gpt Ag, 0.05 gpt Au, 0.14% Cu, 1.0% Pb, 1.6% Zn (including 4.0 m @ 149 gpt Ag, 0.25 gpt Au, 0.70% Cu, 3.2% Pb, 6.9% Zn). “The holes that the Company has drilled to date at El Orito have shown mineralization averaging approximately 30m in width for more than 700m in strike length and up to approximately 300m in vertical depth from surface and is open in all directions”.
  • Minera Alamos Inc. informed that its Santana project in Sonora continues to advance as programmed despite the above average rainfall to date in the area. The press release describes all the progress in leach solution systems, overliner placement, crushing and screening, grade procedures and mining.

ON DEALS AND CORPORATE ISSUES

  • Sierra Madre Gold and Silver Ltd. Entered into a purchase agreement with an option to joint venture with Industrial Minera México S.A. de C.V. (IMMSA) for the 357 ha. La Tigra project in Nayarit, 150 km north of its flagship’s Tepic project. The agreement involves payment of US$1.5 M over three years, with Sierra Madre obliged to produce a 43-101 technical report before the end of the period. IMMSA holds a 2.5% NSR royalty of which Sierra Madre can acquire 1.5% for US$1.5 M.
  • Vizsla Silver Corp. signed a binding agreement with Minera Rio Panuco S.A. de C.V. and executed a binding option exercise notice with Silverstone Resources which together constitute the acceleration and exercise of the option to acquire 100% of the Panuco-Copala district in Sinaloa. Vizsla has to pay $US4.25 M upon signing, issue US$12 M in Vizsla shares before August 10, 2021; and make a cash payment of $US6.1 M before February 2022.

ON SOCIAL RESPONSIBILITY

  • Peñoles and Fresnillo PLC  informed on the several projects that the companies support provide for the education of young people on several areas of Mexico, especially in digital platforms.
  • Conalep (Colegio Nacional de Estudios Profesionales y Tecnicos) and the New Mexico Institute of Mining and Technology signed an agreement to enhance the learning of Mexican and American students.

On the image below:  Intense quartz veining in a granitic intrusive rock in Sinaloa. Picture by Jorge Cirett.

The Mining and Exploration News in Mexico: Highlights on the First Week of July, 2021.

Flow Banded Rhyolite Dome

By Miguel A Heredia

During the 26th week of the year (June 28th to July 04th, 2021), at least 25 press releases were announced by companies working in Mexico and 5 news published by the media, with nine disclosing deals and corporate issues, seven announcing financial rounds, three reporting on resources and developments, three informing on exploration results, three communicating production and financial results, three commenting on Mexican issues, and two discussing social issues.  ON MEXICO ISSUES, The Ministry of the Environment and Natural Resources (SEMARNAT) authorized the expansion of the El Boleo mine in Baja California. Guanajuato Silver announced that it will restart activities at its El Cubo mine in October 2021. Mexico was the world’s leading silver producer in 2020. ON EXPLORATION, In Sonora, Silver Spruce announced it has contracted regional ASTER and LANDSAT spectral analysis on their Mezquite, Jackie and Diamante mining properties. In Chihuahua, Reyna Silver announced that it has started a 10,000m drilling program at its Batopilas project, and reported that a second drill rig has been added to speed up the completion of the current drilling  program conducted at its Guigui project.  ON MINING, Consolidated Zinc provided an operation update of its Plomosas mine in Chihuahua. Magna Gold announced it has achieved full-scale commercial production at its San Francisco mine in Sonora. Mexus Gold announced that it has sold gold doré as a result of recent production at its Santa Elena mine in Sonora.  ON FINANCING, Altaley restructured a USD $$26,027,240 debt with Trafigura and Nyrstar (Campo Morado mine, Guerrero). Comet issued 5M of fully paid ordinary shares (Santa Teresa property, Baja California Norte).  Defiance Silver granted stock options to certain directors and officers (San Acacio property, Zacatecas). Orla subscribed a non-brokered prospectus financing for gross proceeds of USD $35M (Camino Rojo project, Zacatecas). Silver Wolf received approval from OTC Markets Group Inc. to commence trading on the OTCQB Venture Market under the ticker symbol “GYRRF” (Ana Maria and El Laberinto properties in Durango). Silver Bull closed a private placement for gross proceeds of CAD $500K (Sierra Mojada project, Coahuila). Vista Gold received a final payment for $1M from Prime Mining to complete the agreement on the Guadalupe de Los Reyes property in Sinaloa.  ON RESOURCES AND DEVELOPMENT, Chesapeake drilled five core drill holes at its Metates project in Durango to provide core for a comprehensive metallurgical testwork program and to confirm the higher-grade nature of the Metates intrusive hosted mineralization. Prime Mining reported new results from its ongoing drill program conducted at its Los Reyes project in Sinaloa. Silver Tiger released results from its ongoing drilling program conducted at its El Tigre project in Sonora. ON DEALS AND CORPORATE ISSUES, Capstone published its 2020 sustainability report (Cozamine mine, Zacatecas). Discovery Silver presented results of its annual general meeting of shareholders (Cordero project, Chihuahua). Fortuna and Roxgold completed its previously announced business combination (San Jose mine, Oaxaca). GoGold presented its first sustainability report (Los Ricos project, Jalisco). Gold79 announced results from its annual general meeting of shareholders (Taviche project, Oaxaca). GR Silver appointed its Chairman of the Board of Directors (Plomosas project, Sinaloa).  Maverix acquired royalty portfolio from Pan American Silver, including Hernandez property in Sonora.  Sonoro presented results from its annual general meeting of shareholders (Cerro Caliche project, Sonora).  ON SOCIAL RESPONSIBILITY, The company Minera Media Luna (MML), a subsidiary of Torex Gold Resources, convened the second edition of the “Enchulemos Juntos Nuestra Comunidad” (let’s improve our community together) program in the town of Nuevo Balsas, Guerrero. The Secretary of Tourism, Eduardo Yarto delivered two S stamps to Fresnillo plc, after it concluded its processes of renewal of procedures within its facilities to implement good sustainable practices.

ON MEXICO ISSUES

  • The Ministry of the Environment and Natural Resources (SEMARNAT) approved on a conditional basis the expansion of the Environmental Impact Manifestation (MIA) requested by Minera y Metalúrgica del Boleo for the exploitation of copper, cobalt and zinc in 446 hectares for 16 years in the municipality of Mulegé, in Baja California. 2,481 participants representing 89% voted In favor of the expansion.
  • Guanajuato Silver Company Ltd., announced that it will restart activities at its El Cubo mine, Guanajuato in October 2021, which is expected to employ more than 200 miners in the capital, with priority in hiring those who were fired in the closure two years ago.
  • Mexico was the world’s leading silver producer in 2020 maintained the leadership in silver production on a global scale in 2020, with 5,541M tonnes. The Mexican mining company Fresnillo plc owned by Grupo Bal and linked to the Baillères family, is the largest company primary silver producer in the world.

ON EXPLORATION

  • Silver Spruce Resources Inc., announced it has contracted Strategic Consultants IGIS for a regional ASTER and LANDSAT spectral analysis on their Mezquite, Jackie and Diamante mining properties in Sonora. This study will help to understand the structural and lithological controls in a regional context and provide additional detail on the mineral by mineral distribution over each of the properties. It also will help to outline alteration pattern for enhanced target definition in each of the mining properties.
  • Reyna Silver Corp., announced that it has started a 10,000m drilling program at its Batopilas project in Chihuahua. The program is focused on testing targets identified in the spring of 2021 exploration campaign, which discovered multiple extensions to the 30 known veins in the district, of which two new veins returned high-grade values up to 42,302 g/t Ag and 210.4 g/t Au. The company also announced that a second drill rig has been added to its Guigui project in the Santa Eulalia mining district in Chihuahua to extend and speed up the completion of the ongoing drilling program. The company has completed 8,000m of the 12,000m planned and this second rig will allow to speed up the completion of the entire Phase 1 drilling by the end of July, 2021. Results of the Phase 1 drilling campaign will be released soon after.

ON MINING

  • Consolidated Zinc Limited provided an operation update of its Plomosas mine in Chihuahua. The company announced that it processed 3,958 tonnes of ore in May, 2021 for 719 tonnes of zinc concentrates and 184 tonnes of lead concentrates at its Plomosas and Aldama plants in Chihuahua. The company intends to continue processing through both plants until ore stockpiles are depleted and the Plomosas plant sustains the targeted 4,500tpm process rate.
  • Magna Gold Corp., announced it has achieved full-scale commercial production at its San Francisco mine in Sonora. Magna is on track to achieve its earlier stated 2021 guidance of 55K-65K Oz Au production, since it has completed the necessary pre-stripping and substantially lowered the mine strip ratio from ~8:1 to ~3:1. At San Francisco, the company anticipates a production run rate of ~6K Oz Au/month in Q3 and looks to exit the year at a run rate of ~7.5K Oz Au/month.
  • Mexus Gold US announced that it has sold gold doré as a result of recent production at its Santa Elena mine in Sonora. The sales netted the company $24K. “The company is in the process of shipping activated carbon to the U.S. for processing. It is believed that this material contains up to 75 OZ Au.  Mexus is also adding liner to the existing heap leach pad which will allow for increased production. Material currently being mined continues to test in the 5.66g/t Au range”.

ON FINANCING

  • Altaley Mining Corporation restructured a USD $26,027,240 debt with Trafigura Mexico S.A. de C.V., and Nyrstar Canada (Holdings) Ltd.  Terms of the total debt restructured was USD $14,720,840 on the Tahuehueto project in Durango for a term of 32 months, an London interbank offered interest rate (LIBOR) of 6% (1 year), and a grace period of 8 months; USD $4,024,678 on the Campo Morado mine in Guerrero for a term of 26 months, a LIBOR of 5% (3 months), and a grace period of 8 months; and USD $7,281,722 on the Campo Morado mine in Guerrero for a term of 26 months and a LIBOR of 10%.
  • Comet Resources Ltd., issued 5M of fully paid ordinary shares upon the exercise of unlisted options exercisable at $0.02 each on or before 30 June 2021.  (Santa Teresa property, Baja California Norte).
  • Defiance Silver Corp., granted stock options to certain directors and officers to purchase an aggregate of 1.425M of common shares at an exercise price of $0.90. The options are exercisable for a ten-year term expiring June 30, 2031 (San Acacio property, Zacatecas).
  • Orla Mining Ltd., subscribed a non-brokered prospectus financing for gross proceeds of USD $35M, consisting of 9,085,263 common shares priced at CAD $4.75 per common share. Part of the net proceeds will be used for development activities at its Camino Rojo Oxide Gold project in Zacatecas. The offering is expected to close on or about July 14, 2021.
  • Silver Wolf Exploration Ltd., received approval from OTC Markets Group Inc. to commence trading on the OTCQB Venture Market under the ticker symbol “GYRRF” (Ana Maria and El Laberinto properties in Durango).
  • Silver Bull Resources Inc., closed a private placement for gross proceeds of CAD $500K. Net proceeds of the private placement will be used by Silver Bull for general working capital purposes   (Sierra Mojada project, Coahuila).
  • Vista Gold Corp., received a final payment for $1M from Prime Mining Corp. to complete the agreement on the Guadalupe de Los Reyes property in Sinaloa. With this $1.0M payment, Vista has no remaining right to be granted the royalties and back-in rights.

ON RESOURCES AND DEVELOPMENT

  • Chesapeake Gold Corp., drilled five core drill holes at its Metates project in Durango to provide core for a comprehensive metallurgical testwork program and to confirm the higher-grade nature of the Metates intrusive hosted mineralization. Significant drill intercepts were encountered in hole CKG21-086 with 1.15 g/t Au and 49 g/t Ag (1.80 g/t AuEq or 135 g/t AgEq) over a true width (TW) of 432m, including 1.21 g(t Au and 417 g/t Ag (6.77 g/t AuEq or 508 g/t AgEq) over a TW of 9m, including 2.49 g/t Au and 22 g/t Ag (2.78 g/t AuEq or 20+9 g/t AgEq) over a TW of 69m, and including 2.13 g/t Au and 9 g/t Ag (2.25 g/t AuEq or 170 g/t AgEq) over a TW of 57m; hole CKG21-085 with 1.13 g/t Au and 29 g/t Ag (1.53 g/t AuEq or 114 g/t AgEq) over a TW of 282m, including 1.34 g/t Au and 32 g/t Ag (1.76 g/t AuEq or 132 g/t AgEq) over a TW of 150m; and hole CKG21-084 with 1.06 g/t Au and 17 g/t Ag (1.29 g/t AuEq or 97 g/t AgEq) over a TW of 135m, plus 0.86 g/t Au and 11 g/t Ag (1.01 g/t AuEq or 75 g/t AgEq) over a TW of 90m.
  • Prime Mining Corp., reported new results from its ongoing drill program conducted at its Los Reyes project in Sinaloa. The most significant drill intercepts were encountered in hole 21Mina-02 with 4.44 g/t Au and 1,060 g/t Ag over an estimated true width (ETW) of 4.8m, including 6.62 g/t Au and 1,398 g/t Ag over an ETW of 2m, including 6.3 g/t Au and 1,881 g/t Ag over an ETW of 1.2m; hole 21Mina-05 with 3,243 g/t Ag over an ETW of 0.74m, plus 1.45 g/t Au and 29 g/t Ag over an ETW of 1.85m; and hole 21Mina-06 with 1.72 g/t Au and 30 g/t Ag over an ETW of 3.20m.  These results are from six holes completed at Mina Area during phase I drilling. To date, 15,000m Phase I is complete and the 30,000m Phase 2 program has been started.
  • Silver Tiger Metals Inc., released results from its ongoing drilling program conducted on the Sooy Vein at its El Tigre project in Sonora. Highlights include hole ET21-233 with 0.13 g/t Au, 491 g/t Ag, 0.08% Pb, and 0.01% Zn (510 g/t AgEq) over 0.5m, plus  0.25 g/t Au, 2,041 g/t Ag, 0.65% Cu, 1.2% Pb, and 3.6% Zn (2,271 g/t AgEq), including 4,048 g/t Ag, 0.45 g/t Au, 1.31% Cu, 0.6% Pb, and 7.3% Zn (4,461 g/t AgEq) over 0.5m; hole ET21-230 with 0.15 g/t Au, 704 g/t Ag, 0.14% Cu, 0.05% Zn (731 g/t AgEq) over 0.5m, plus 0.12 g/t Au, 193 g/t Ag, 0.09% Cu, 0.03% Pb, and 0.15 % Zn (217 g/t AgEq) over 3m, including 0.2 g/t Au, 1,080 g/t Ag, 0.55% Cu, 0.1% Pb, and 0.75% Zn (1,176 g/t AgEq) over 0.5m, plus 0.28 g/t Au, 199 g/t Ag, 0.06% Cu, 0.2% Pb, and 0.3% Zn (241 g/t AgEq) over 0.5, plus 0.41 g/t Au, 161 g/t Ag, 0.04% Cu, 0.2% Pn, and 0.4% Zn (214 g/t AgEq) over 0.5m; and hole ET21-229 with 0.13 g/t Au, 63 g/t Ag, 0.21% Cu, 0.8% Pb, and 1.6% Zn (165 g/t AgEq) over 13.5m, including 0.11 g/t Au, 83 g/t Ag, 0.27% Cu, 1% Pb, and 2% Zn (209 g/t AgEq) over 9.9m, including 0.21 g/t Au, 114 g/t Ag, 0.38% Cu, 3.7% Pb, and 8.7% Zn (542 g/t AgEq) over 1.8m.

ON DEALS AND CORPORATE ISSUES

  • Capstone Mining Corp., published its 2020 sustainability report.  (Cozamine mine, Zacatecas)
  • Discovery Silver Corp. presented results of voting at its annual general meeting of shareholders (Cordero project, Chihuahua).
  • Fortuna Silver Mines Inc., and Roxgold Inc., completed its previously announced business combination to create a global premier growth-oriented intermediate gold and silver producer (San Jose mine, Oaxaca).
  • GoGold Resources Inc., presented its first sustainability report that sets out the company’s priorities with respect to its environmental, social and governance (“ESG”) practices (Los Ricos project, Jalisco).
  • Gold79 Mines Ltd., announced results from its annual general meeting of shareholders (Taviche project, Oaxaca).
  • GR Silver Mining Ltd., appointed its Chairman of the Board of Directors (Plomosas project, Sinaloa).
  • Maverix Metals Inc., acquired royalty portfolio from Pan American Silver, including Hernandez property in Sonora. The Hernandez property, currently on exploration, is owned by First Majestic and includes a 2.5% NSR.
  • Sonoro Gold Corp., presented results from its annual general meeting of shareholders (Cerro Caliche project, Sonora). 

ON SOCIAL RESPONSIBILITY

  • Minera Media Luna (MML), a subsidiary of Torex Gold Resources, convened the second edition of the “Enchulemos Juntos Nuestra Comunidad” (let’s improve our community together) program in the town of Nuevo Balsas, Guerrero. During the cleaning day, about 300 people participated, including contractors, residents and collaborators of the mining company, remodeling four public spaces: the vehicular roundabout on Gerardo Reyes Norte Street, the camellones on that same street, the sports area in the southern part and the perimeter fencing of the downtown court. The investment of the work done amounted to MXP $1.3M. Members of the Public and Community Relations areas of MML, the collaborators of 11 contractor companies, members of the Participatory Community Development Committee (CODECOP) and residents of Nuevo Balsas cleaned and reforested green areas, painted fences and garrisons, and assisted in various activities that together aim to maintain the program to improve public spaces that the mining company began last year. The effort achieved the painting of 2,300 meters of trimmings, the planting of 90 trees, the collection of five tons of garbage, and the painting of 300 square meters of fences.
  • The Secretary of Tourism in Zacatecas, Eduardo Yarto delivered two S stamps to Fresnillo plc, after it concluded its processes of renewal of procedures within its facilities to implement good sustainable practices. The Secretary underlined the disposition of Fresnillo plc, with the renewal of the certification for the golf course and the ecological park Fresnillo PLC, to offer quality services to users.

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 flow banded rhyolite dome intruding a clay-altered rhyolitic ignimbrite sequence in Chihuahua, Mexico.  Photo by Miguel A Heredia.

The Mining and Exploration News in Mexico: Highlights on the First Week of June, 2021.

Quartz Blade Texture

By Miguel A Heredia

During the 22nd week of the year (May 31st to June 06th, 2021), at least 24 press releases were announced by companies working in Mexico and 1 news published by the media, with six disclosing deals and corporate issues, six announcing financial rounds, five informing on exploration results, four reporting on resources and developments, three discussing social issues, and one communicating production and financial results.  ON MEXICO ISSUES, No relevant news.  ON EXPLORATION, In Sonora, Benjamin Hill Mining released additional sampling results from its Benjamin Hill property, Silver Spruce and its JV partner Colibri commenced the phase 1 exploration drilling at its Mezquite project, and Heliostar presented results from its mapping and sampling program at its Oso Negro project. In Zacatecas, Zacatecas Silver completed the geological mapping and sampling program of the San Manuel Vein System. ON MINING, Santacruz reported Q1, 2021 production and financial results from their Zimapan and Rosario mines in Hidalgo and San Luis Potosi States respectively. ON FINANCING, Alamos Gold declared quarterly dividend of USD $0.025 per common share (Mulatos mine, Sonora). Chesapeake reported that it granted 73,500 incentive stock options at an exercise price of $4.37 per share (Metates project, Durango). Colibri announced that its previously announced private placement has been oversubscribed for an additional 399,139 units at $.10 per unit (El Pilar project, Sonora). Silver Viper closed the first tranche of a $6M private placement for gross proceeds of $4.57M (La Virginia project, Sonora).  VanGold signed a definitive agreement to obtain a non-dilutive USD $7.5M in the form of a silver and gold loan (El Cubo mine, Guanajuato). Vizsla closed a bought deal financing offering for gross proceeds of CAD $69M (Panuco project, Sinaloa). ON RESOURCES AND DEVELOPMENT, Barksdale outlined a 5,000m drilling program at its San Javier project in Sonora. GoGold released results from six holes collared at its Los Ricos North project in Jalisco. Oroco presented results from the 3D IP survey conducted at its Santo Tomas project in Sinaloa. Sonoro completed the nine final RC holes at its Cerro Caliche project in Sonora and moves towards an updated technical report and new PEA. ON DEALS AND CORPORATE ISSUES, Capstone announced the resignation of a member of its Board of Directors (Cozamine mine, Zacatecas). VanGold announced that it will change its name to Guanajuato Silver Company, Ltd. (El Cubo mine, Guanajuato). Gatos Silver announced the appointment of its President and CEO, effective June 1, 2021 (Los Gatos mine, Chihuahua). Great Panther appointed its new CFO and COO (Topia mine, Durango). First Majestic released results from its annual general meeting of shareholders (San Dimas property, Durango).  Fortuna Silver provided an update of the legal dispute against the Mexican Geological Survey (SGM) if the royalty in one of its claims at San Jose mine in Oaxaca is not paid.  ON SOCIAL RESPONSIBILITY, Minera Alamos released its 2020 Environmental, Social, and Corporate Governance (ESG) Report (Mulatos mine, Sonora).  Grupo México delivered seed capital for productive and social projects in the community of Sombrerete, Zacatecas. Newmont Corporation launched its 2020 Annual Sustainability Report.

ON MEXICO ISSUES

  • No relevant news.

ON EXPLORATION

  • Benjamin Hill Mining Corp., released additional assays from 45 samples collected at the new La Salada East Area within its Benjamin Hill property in Sonora. Chip samples returned multiple results ranging from 1 g/t Au to 3.8 g/t Au with peaks of 10 g/t Au and 10.1 g/t Au. Gold values are associated with quartz veining and quartz breccias often with chalcopyrite, galena and hematite, limonite and “boxwork” pyrite. These results extend the known gold mineralization previously reported. The company also announced that it is finalizing drill program planning to test the most prospective targets generated to date and expects to receive drill permits in early June.
  • Silver Spruce Resources Inc., and its JV partner Colibri Resource Corporation commenced the 2,000m phase 1 exploration RC drilling at its Mezquite project in Sonora. Six holes are planned to drill test an area of 400m by 600m with elevated values to 3.41 g/t Au and 387 g/t Ag.
  • Heliostar Metals Limited presented results from its mapping and sampling program at its Oso Negro project in Sonora. High grade channel samples defined drill targets at the Prospecto Vein zone including 5.14 g/t Au, 953 g/t Ag, 1% Pb, and 1.9% Zn (1,428 g/t AgEq) over 1.2m; 2.55 g/t Au, 346 g/t Ag, 0.4% Pb, and 1.2% Zn (588 g/t AgEq) over 1.8m; and 3.29 g/t Au, 89 g/t Ag, 0.2% Pb, and 0.6% Zn (362 g/t AgEq) over 2.4m. This target has a length of 360m of strike, and has a weighted average grade of 420 g/t AgEq over and average width of 1.3m. Heliostar also announced the stacking of a new claim, Angel de Plata 2, increasing its land position to 120 square kilometers. Two new vein corridors have been discovered on the new claim with mine dump samples from historic workings up to 1,810 g/t AgEq.
  • Zacatecas Silver Corp., completed the first pass of its geological mapping and sampling program on the San Manuel Vein System. The company defined eight sets of oxidized, silver-base metal mineralized veins for over at least 3 km in length, with a dilation zone that is at least 600m wide. This extensional zone represents robust drill targets. The company has already commenced an environmental study at San Gill-San Manuel, concurrent with planning of first phase drilling at this target, which should be completed within 4 weeks.

ON MINING

  • Santacruz Silver Mining Ltd., Santacruz reported Q1, 2021 production and financial results from their Zimapan and Rosario mines in Hidalgo and San Luis Potosi states respectively.  At Zimapan, Hidalgo, the company processed 156, 433 tonnes to produce 646K Oz AgEq at cash and AISC of USD $19.91 and USD $27.19 per Oz AgEq respectively. At Rosario, San Luis Potosi, Santacruz processed 19,806 tonnes to produce 60.9K Oz AgEq at cash and AISC of USD $27.19 and USD $52.57 respectively. The company reported consolidated revenues of USD $11.1M, gross profit of USD $2.2M, EBITDA of USD $983K, and cash and marketable securities of USD $6.8M (Zimapan and Rosario mines in Hidalgo and San Luis Potosi respectively).

ON FINANCING

  • Alamos Gold Inc., declared quarterly dividend of USD $0.025 per common share. The company also implemented a dividend reinvestment plan. It gives the shareholders the option of increasing their investment by electing to receive common shares instead of cash dividend at a 3% discount to the prevailing market price (Mulatos mine, Sonora).
  • Chesapeake Gold Corp., reported that it granted 73,500 incentive stock options at an exercise price of $4.37 per share. The Options will vest and be exercisable on the basis of 25% annually, commencing May 31, 2022, the first anniversary of the date of the grant. (Metates project, Durango).
  • Colibri Resource Corporation announced that its previously announced private placement of 23,482,000 units has been oversubscribed for an additional 399,139 units at $.10 per unit with each unit consisting of one common share and one common share purchase warrant exercisable at $0.15 for one common share for a period of twenty-four months from the date of issue. (El Pilar project, Sonora).
  • Silver Viper Minerals Corp., closed the first tranche of a $6M private placement for gross proceeds of $4.57M (La Virginia project, Sonora).  The Company intends to use the net proceeds from the Offering for working capital requirements and other general corporate purposes.
  • VanGold Mining Corp., signed a definitive agreement to obtain a non-dilutive USD $7.5M in the form of a silver and gold loan. The company estimates that the amount of gold and silver required to repay this loan facility will represent approximately 25% of the projected gold and silver to be produced by VanGold from its operations at the El Cubo mill in Guanajuato during the 12-month repayment period of the loan.
  • Vizsla Silver Corp., closed a bought deal financing offering for gross proceeds of CAD $69M. The net proceeds of the Public Offering will be used to advance the exploration and development of the Company’s Panuco project, to make option payments and pursue potential future acquisitions, as well as for working capital and general corporate purposes.

ON RESOURCES AND DEVELOPMENT

  • Barksdale Resources Corp., outlined a 5,000m drilling program at its San Javier project in Sonora. The plan is to start drilling in July 2021 at the Cerro Verde area to confirm near surface copper oxide and gold mineralization up to 200m and test structures believed to control higher grade mineralization.  Cerro Verde has historic indicated + inferred resources for 86M tonnes of 0.33% Cu for a total of 630M Lb Cu. The company also plans to run metallurgical tests to better understand the potential processing routes for both copper and gold mineralization.
  • GoGold Resources Inc., released results from six holes collared at its Los Ricos North project in Jalisco. The most significant results was encountered in hole LRGF-21-041 with 0.38 g/t Au and 84 g/t Ag (1.5 g/t AuEq or 113 g/t AgEq) over 1.7m, plus 0.31 g/t Au and 82 g/t Ag (1.41 g/t AuEq or 105 g/t AgEq) over 56.1m, including 3.57 g/t Au and 975 g/t Ag (16.57 g/t AuEq or 1,243 g/t AgEq) over 1.3m, plus 0.19 g/ Au and 90 g/t Ag (1.39 g/t AuEq or 104 g/t AgEq) over 2.3m.
  • Oroco Resource Corporation presented results from the 3D IP survey conducted at its Santo Tomas project in Sinaloa. The 3D IP results show a good correlation of chargeability and resistivity features with known mineralization and alteration zones in the area of historical drilling and resource delineation. “Final survey data displays a very extensive distribution of chargeability / resistivity features beyond the confines of the historical work at Santo Tomas”. 
  • Sonoro Gold Corp., completed the nine final RC holes at its Cerro Caliche project in Sonora and moves towards an updated technical report and new PEA. The most significant drill intersections were encountered in hole SCR-262 collared at Buena Suerte Area with 0.37 g/t Au and 0.6 g/t Ag (0.38 g/t AuEq) over 21.33m, and ole SCR-264 also collared at Buena Suerte area with 0.29 g/t Au and 12 g/t Ag (0.47 g/t AuEq) over 21.34m, including 1.59 g/t Au and 135 g/t Ag (3.52 g/t AuEq) over 1.53, plus 0.76 g/t Au and 7 g/t Ag (0.87 g/t AuEq) over 15.24m, including 2.4 g/t Au and 2 g/t Ag (2.43 g/t AuEq) over 1.52m. These results indicated a coalescence of the Buena Suerte and Los Japoneses areas into a single orebody of shallow, oxide gold mineralization. Sonoro expects two independent 43-101 compliant reports to update the resource size and classification and determine whether it is sufficient to support the Company’s proposed heap leach mining operation with a conceptual operation of up to 15,000 tonnes per day.

ON DEALS AND CORPORATE ISSUES

  • Capstone Mining Corp., announced the resignation of a member from its Board of Directors (Cozamine mine, Zacatecas).
  • VanGold Mining Corp., announced that it will change its name to Guanajuato Silver Company, Ltd., for which it has reserved the stock symbol GSVR with the TSX Venture Exchange (El Cubo mine, Guanajuato).
  • Gatos Silver Inc., announced the appointment of its President and CEO. He will assume its role, effective June 1, 2021 (Los Gatos mine, Chihuahua).
  • Great Panther Mining Limited, appointed its new CFO and COO, effective June 30, 2021 (Topia mine, Durango).
  • First Majestic Silver Corp., released results from its annual general meeting of shareholders (San Dimas property, Durango). 
  • Fortuna Silver Mines Inc., provided an update of the legal dispute against the Mexican Geological Survey (SGM) if the royalty in one of its claims at San Jose mine in Oaxaca is not paid. Effective May 27, 2021, the General Direction of Mines (DGM) provided notice to the Company of the termination of the cancellation procedure, as it has determined that the required cause for cancellation of the concession was not established.   As a result, the Company has discontinued the Amparo Proceedings in the Collegiate Court in Mexico. In light of these constructive developments, the Company is now engaged in goodwill discussions with the SGM to reach an agreement to the satisfaction of both parties with respect to the royalty claim.

ON SOCIAL RESPONSIBILITY

  • Alamos Gold Inc., released its 2020 Environmental, Social, and Corporate Governance (ESG) Report. It outlines the company’s progress on its ESG performance in 2020 across its operations, projects and offices, and provides direction on planned initiatives for 2021 (Mulatos mine, Sonora). 
  • Grupo México delivered seed capital for productive and social projects in the community of Sombrerete, Zacatecas, which contribute to promoting development and building a more competitive community. This project that has been carried out since 2009 has approved more than 600 projects. On this occasion, seven new projects were approved whose support is MXP $1M, which is distributed among the projects, according to the scope presented by each one.
  • Newmont Corporation launched its 2020 Annual Sustainability Report. This is part of the suite of reports on the Company’s environmental, social and governance (ESG) practices in key areas that include health, safety and security, human rights, the environment, social acceptance, governance, and inclusion and diversity.

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

On the picture above, quartz blade texture in a hot spring and epithermal vein system in a project in Hidalgo, Mexico.  Photo by Miguel A Heredia.

The Mining and Exploration News in Mexico: Highlights on the Third Week of May, 2021.

Rich-silver banded quartz vein

By Miguel A Heredia

During the 20th week of the year (May 17th to May 23th, 2021), at least 28 press releases were announced by companies working in Mexico and 7 news published by the media, with nine reporting on resources and development, six informing on exploration results, five disclosing deals and corporate issues, five commenting on Mexican issues, five announcing financial rounds, three communicating production results, and two discussing social issues.  ON MEXICO ISSUES, Minera Penmont (Fresnillo plc) thanked the President of Mexico for his comments on the insecurity registered in Sonora. Maria Luisa Albores, Head of the Ministry of Environmental and Natural Resources (SEMARNAT), travel to Santa Rosalia to meets with businessmen and workers from El Boleo mining company. Plenary of the Guerrero State Congress approved recently the creation of the Mining Commission. Maria Luisa Albores, Head of the Ministry of Environmental and Natural Resources (SEMARNAT) made a series of unfortunate statements against the Mexican mining industry.  ON EXPLORATION, In Sonora, Tocvan received permit for trenching and drilling at its the El Pilar project, Silver Spruce, JV partner of Colibri Resources on Jackie project, discovered a new high-grade exploration target in the property, Ridgestone completed another phase of exploration at its Rebeico project, and Minaurum provided an exploration update on their Alamos and Aurifero projects. In Sinaloa, Vizsla presented results from ten holes drilled on Tajitos Vein at its Panuco project. In Oaxaca, Minaurum provided an update on their Santa Marta and Aurena projects.  ON MINING, Consolidated Zinc provided an update of its Plomosas plant in Chihuahua. Minera Alamos announced that it has successfully executed the first planned production blasts at its Santana project in Sonora. Mag Silver presented Q1, 2021 production and financial results from its Juanicipio project in Zacatecas. ON FINANCING, Canasil closed an oversubscribed non-brokered private placement for gross proceeds of $790K (La Esperanza project, Zacatecas). Defiance announced a brokered private placement for gross proceeds of up to CAD $7.2M (San Acacio project, Zacatecas). Sonoro granted, under its share option plan, incentive stock options to certain directors, officers and consultants to purchase an aggregate of 2M (Cerro Caliche, Sonora). Telson granted incentive stock options to newly appointed directors totaling 2M (Campo Morado, Guerrero). Southern Silver announced that its common shares have commenced to trade on the OTCQX (Cerro Las Minitas, Durango). ON RESOURCES AND DEVELOPMENT, Silvertone announced the appointment of a mining contractor and commences to access underground workings at its La Frazada mining property in Nayarit. Azucar Minerals recommenced drilling at its El Cobre property in Veracruz. Capitan Mining released results from eight RC drill holes from its 2021 program on the Capitan gold zone in Durango. Endeavour announced drill results from its Bolañitos property in Guanajuato. GoGold presented results from eight drill holes collared at its Los Ricos North project in Jalisco. Orex contracted SRK Consulting to conduct a resource estimation study on its Coneto property in Durango. Tarachi Gold completed a tailings drilling program at its Magistral project in Durango. Silver Tiger released drill results from its El Tigre project in Sonora.  Sailfish presented an updated mineral resource estimate on its Gavilanes property in Durango. ON DEALS AND CORPORATE ISSUES; Fabled announced proposed spinout of its copper assets into Fabled Copper Corp (Santa Maria property, Chihuahua). Chesapeake announced results from its annual general meeting of shareholders (Metates property, Durango). Comet Resources executed a binding agreement to acquire 100% interest in the La Sorpresa III tenement (Santa Teresa property, Baja California). Xali signed a new exploration and production agreement on El Dorado property in Nayarit. Riverside announced that it has recovered from Hochschild the Los Cuarentas project in Sonora. ON SOCIAL RESPONSIBILITY, Minera San Xavier (New Gold) and the Archdiocese of San Luis Potosí, announced the reopening of the temple of San Pedro Apóstol in Cerro San Pedro, San Luis Potosi. The Mining Cluster of Sonora AC announced that it will promote a comprehensive safety and work-family balance in mining.

ON MEXICO ISSUES

  • Minera Penmont (Fresnillo plc) thanked the President of Mexico for his comments on the insecurity registered in Sonora. Two years ago, Minera Penmont denounced before state authorities the commission of various crimes, including the invasion of their property, perpetrated by a criminal group that claims to be part of the ejido. This group has absolutely no legal arguments and intends to take over the private property of the company to carry out mining exploitation actions outside the law, without the concession required for it, nor the corresponding environmental permits, using dangerous and controlled materials, directly affecting the Mexican State, the environment, the company and maintaining its criminal acts in the region.
  • Maria Luisa Albores, Head of the Ministry of Environmental and Natural Resources (SEMARNAT), traveled to Santa Rosalia to meets with businessmen and workers from El Boleo mining company.  She was entrusted with a consultation to find out the opinion of the population about the expansion of the environmental impact statement (MIA). Minera Boleo requested to expand the area of extraction, processing and shipment of copper minerals.
  • Plenary of the Guerrero State Congress approved recently the creation of the Mining Commission.  The president of the Political Coordination Board (Jucopo) of the local Congress, Alfredo Sánchez Esquivel pointed out that there is a real problem in the case of mining companies and the environment, for which the creation of this Commission was necessary. For his part, the state secretary of Promotion and Economic Development, Álvaro Burgos Barrera, considered the incorporation of a legislative commission to monitor the mining sector as highly relevant. He reported that in the current state administration headed by Héctor Astudillo Flores, governance allowed mining companies to invest approximately USD $2B in Guerrero.
  • Maria Luisa Albores, Head of the Ministry of Environmental and Natural Resources (SEMARNAT) made a series of unfortunate statements against the Mexican mining industry. She assured that the country’s mining activity has caused strong environmental effects, monopolizing water and causing social inequality. Her statements are full of biased and wrong information and caused immediately the strong reaction of different actors of the mining sector. Specialists of the sector declared that the view of the federal government has on mining is wrong. CAMIMEX has indicated that of the total water consumption in Mexico, 77% is used by agriculture; 14% is for public use; 5% to generate energy and 4% for industrial use and of the latter only 0.9% corresponds to milling. CAMIMEX also stated that 74% of the water used by this industry is recycled and, of that amount, 55% is continuously reused. In addition, the mining sector has 70 sewage treatment plants in the communities where it operates. There are dams that capture rainwater, which is given to the municipality, piped and sent to homes, when it is necessary. A large percentage of companies carry out social and human rights proceedings. They generate social and environmental programs. In 2019, mining companies allocated MXP $7,450M to actions in favor of the environment and MXP $1,756M to community development, in addition to the MXP $3,496M that were paid to the Mining Fund. Many companies have the largest plant nurseries in the country and have large animal rescue zoos that are delivered to the State. Mining is one of the industries that produces and plants the most trees, 6.6M million trees produced in the nurseries of mining companies; 2.93 million trees planted reforesting an area of more than 3,000 hectares in 2019. The Mexican mining industry is over-regulated and has to comply with seven environmental permits in the stage of exploration and nineteen environmental permits throughout the life of a mine. For the reasons stated above, the mining sector rejects the indications that point to that its activity does not respect the norms of protection of the environment and that it does not generate social welfare for the neighboring communities. That is why the sector unlocks the doors to the authorities with an open invitation to visit the operations and verify for themselves these realities of the mining sector and reliably inform the population.

ON EXPLORATION

  • Tocvan Ventures Corp., received permit for additional seven trenches and forty four drill pads at its the El Pilar project in Sonora. The additional drill pads will be used during the current program and during a phase III program planned for the fall of 2021.
  • Silver Spruce Resources Inc., JV partner of Colibri Resources Corp on Jackie project, discovered a new high-grade exploration target in the property. Silver Spruce discovered a high quality, broadly-zoned geochemical anomaly with multiple mineralized surface rock samples with >0.1 g/t Au and anomalous to highly anomalous base metal and pathfinders element values, ranging up to 9.65 g/t Au and 515 g/t Ag. The target is characterized by an extensive and intense oxide and silicate alteration, which consists of bleached and oxidized argillic zones with anomalous clay minerals and muscovite. Silver Spruce plans to conduct a grid sampling and mapping around this exploration target.
  • Ridgestone Mining Inc., completed another phase of exploration at its Rebeico project, which consisted of geologic mapping, prospecting and sampling around the past producing El Cobre mine. A total of 93 samples were collected and assays are expected to arrive in the coming weeks.
  • Minaurum Gold Inc., provided an exploration update on their Alamos and Aurifero projects in Sonora, and Santa Marta and Aurena projects in Oaxaca.  At Alamos project, the company is planning to resume the phase II of its drilling program shortly, has completed a total of 30,000 m of drilling and discovered 26 separate vein zones. Minaurum is focused on systematically expanding silver shoots discovered in Phase I as well as continuing with aggressive exploration drilling focusing on new discoveries at unmined veins. At Aurifero project, the company has completed compilation of historical exploration data at Aurifero and has re-logged some of the available drill core from the project.  Minaurum will design a drill program and apply for necessary permits in the second half of 2021.
  • Vizsla Silver Corp., presented results from ten holes drilled on Tajitos Vein at its Panuco project in Sinaloa. The most significant drill intersection was encountered in hole NP-21-29 with 1.56 g/t Au and 391 g/t Ag (513 g/t AgEq) over a true width (TW) of 7.76m, including 3.60 g/t Au and 1,157 g/t Ag (1,423 g/t AgEq) over a TW of 1.22m. Vizsla has drilled 32 holes at Tajitos Vein, showing an average weighted grade of 2.1 g/t Au and 329 g/t Ag (505 g/t AgEq) over an average vein TW of 3.08m. Mineralization extends over 575 metres in length, 250 metres deep and remains open to the northeast, southwest and at depth.
  • Minaurum Gold Inc., provided an update on their Santa Marta and Aurena projects in Oaxaca. At Santa Marta project, the company has acquired regional mapping and sampling data indicate the likely presence of additional nearby VMS exploration targets that lie within Minaurum’s property holdings.  Minaurum has designed an initial drill program and submitted a drill permit for environmental approval. At Aurena project, it intends to continue holding and ultimately conducting a Phase II drill program, most efficiently in conjunction with an initial drill program at the nearby Santa Marta project.

ON MINING

  • Consolidated Zinc Limited provided an update of its Plomosas plant in Chihuahua. The Plomosas pant had its first continuous run performing at or better than designed operating capacity. The company also announced that the expansion of Plomosas plant from 100tpd to 200tpd is expected to be completed in Q4, 2021.
  • Minera Alamos Inc., announced that it has successfully executed the first planned production blasts at its Santana project in Sonora. After this, Minera Alamos has already begun on subsequent blasting as the Nicho Norte pit is opened up. This first material will be used to test the leaching circuit and commission the carbon plant prior to continuous loading of the heap leach pad as the Company takes a prudent approach to ramping up operations at Santana throughout the remainder of 2021 ahead of more steady state operation in 2022 and beyond.
  • Mag Silver Corp., presented Q1, 2021 production and financial results from its Juanicipio project in Zacatecas. The company processed 36,395 tonnes through the Fresnillo plant with 458 g/t Ag to produce 431.2K Oz Ag, 631 Oz Au, 306.9K Lb Pb, and 445.8K Lb Zn. Mag reported net sales of USD $10.1M, gross profit of USD $8.2M, net income before tax of USD $6.75M, net income after tax of USD $1.44M, resulting in a MAG equity pick up (44%) of USD $632K. The company also reported a CAPEX of USD $440K, and a cash and cash equivalent of USD $92.8K.

ON FINANCING

  • Canasil Resources Inc., closed an oversubscribed non-brokered private placement for gross proceeds of $790K. Gross proceeds will be used to fund continued drill programs on their projects in Durango and Zacatecas, and for working capital purposes (La Esperanza project, Zacatecas).
  • Defiance Silver Corp., announced a brokered private placement for gross proceeds of up to CAD $7.2M. Net proceeds will be used for exploration of their projects as well as for general working capital purposes (San Acacio project, Zacatecas).
  • Sonoro Gold Corp., granted, under its share option plan, incentive stock options to certain directors, officers and consultants to purchase an aggregate of 2M at a price of $0.3 per common share (Cerro Caliche, Sonora).
  • Telson Mining Corporation granted incentive stock options to newly appointed directors totaling 2M. The options will be exercisable at a price of $0.45 per share for a period of five years (Campo Morado, Guerrero).
  • Southern Silver Exploration Corp., announced that its common shares have commenced to trade on the OTCQX under the ticker symbol SSVFF (Cerro Las Minitas, Durango).

ON RESOURCES AND DEVELOPMENT

  • Silvertone Metals Corp., announced the appointment of a mining contractor and commences to access underground workings at its La Frazada mining property in Nayarit. Over 3km of underground workings has been identified as being potentially accessible, work has commenced to clean and making safe adits and drifts which will be geologically mapped and systematically channel sampled. “Gaining access to the underground working, will give valuable geological information and help to confirm historical measured & indicated resource of 4.7M Oz Ag and Inferred resource of 3.86M Oz Ag. The information gained from underground will also assist in targeting diamond drilling to test for extensions of the mineralization.”
  • Azucar Minerals Ltd., recommenced drilling at its El Cobre property in Veracruz. The focus for the current drill program in 2021 will be in the Pedregal, Villa Rica, and Encinal Zones of the property. Initially one hole is planned for each area.
  • Capitan Mining Inc., released results from eight RC drill holes from its 2021 program on the Capitan gold zone in Durango. The most significant drill interception  was encountered in hole 21-CARC-24 which returned 0.34 g/t Au over 42.7m, including 0.56 g(/t Au over 10.7m. These last eight holes drilled at the property, completed the previously announced 6,000m drilling program, which consisted of 28 RC holes. All of the RC holes encountered dominantly oxide gold mineralization. “To date, the Capitan gold zone has been traced for over 1.2km long and up to 450m down-dip and remains open in all directions except to the north.
  • Endeavour Silver Corp., announced drill results from its 2021 drilling program at its Bolañitos property in Guanajuato. The drilling program is focused on expanding the Melladito and Belen orebodies. Significant drill intersections were encountered in hole BN-64 collared on the Melladito HW vein which returned 8.09 g/t Au and 1,044 g/t Ag (1,611 g/t AgEq) over a true width (TW) of 1m, including 14.2 g/t Au and 1,974 g/t Ag (2,966 g/t AgEq) over a TW of 0.26m; and hole BL1.5S-4 collared on the Belen HW vein which returned 4.43 g/t Au and 148 g/t Ag (458 g/t AgEq) over a TW of 2.34m, including 13.22 g/t Au and 129 g/t Ag (1,054 g/t AgEq) over a TW of 0.19m. The company is currently producing from four orebodies at Bolañitos: Plateros, Lucero, San Miguel and Melladito.
  • GoGold Resources Inc., presented results from eight drill holes collared at its Los Ricos North project in Jalisco. The most significant drill intersections were encountered at El Orito area in holes LRGO-21-020 with 2.02 g/t Au, 168 g/t Ag, 0.02% Cu, 0.2% Pb, and 0.1% Zn (331 g/t AgEq) over 11.8m, including 11.63 g/t Au, 832 g/t Ag, 0.05% Cu, 0.5% Pb, and 0.2% Zn (1,729 g/t AgEq) over 1.8m; and hole LRGO-21-027 with 0.1 g/t Au, 57 g/t Ag, 0.24% Cu, 2.2% Pb, and 0.2% Zn (145 g/t AgEq) over 53.4m, including 0.06g/t Au, 150 g/t Ag, 0.47% Cu, 7.1% Pb, and 0.3% Zn (376 g/t AgEq) over 4.2m, plus another deeper interval of  0.04 g/t Au, 44 g/t Ag, 0.04% Cu, 0.4% Pb, and 0.3% Zn (72 g/t AgEq). The holes that the company has drilled to date at El Orito have shown mineralization averaging 30m in width over 700m in strike length and 200m in vertical depth from surface, and is open in all directions.
  • Orex Minerals Inc., Gold contracted SRK Consulting to conduct a Resource Estimation Study on its Coneto property in Durango. The database for Coneto includes 106 diamond drill holes totaling 38,516 metres on 12 vein targets. In addition to this study, a separate Metallurgical Study will be performed on each of the mineralized lodes.
  • Tarachi Gold Corp., completed 37 drill holes at depths ranging from 1.3 to 14.5m using an auger drill and 70cm-long Shelby sample capture tubes at its Magistral Tailings project in Durango. The drilling program was part of the resource estimate and Preliminary Economic Assessment (PEA) being prepared by Ausenco Engineering. The drill samples will be assayed and representative composites prepared as part of the metallurgical test work being overseen by Ausenco Engineering.
  • Silver Tiger Metals Inc., released drill results from its El Tigre project in Sonora. Hole ET-21-208A collared on the Benjamin Vein intersected 0.06 g/t Au, 382 g/t Ag, 0.17% Cu, 0.8% Pb, and 1.2% Zn (463 g/t AgEq) over 14.8m, including 0.06 g/t Au, 615 g/t Ag, 0.27% Cu, 1.2% Pb, and 1.9% Zn (735 g/t AgEq) over 8.8m, including 0.13 g/t Au, 2,451 g/t Ag, 1.12% Cu, 4.4% Pb, and 9.5% Zn ( 3,000 g/t AgEq)  over 1.3m. Hole ET 21-221 collared on the Sooy Vein intersected 4.22 g/t Au, 466 g/t Ag, 0.07% Cu, 0.2% Pb, and 0.2% Zn (799 g/t AgEq) over 1.5m, plus 0.35 g/t Au, 80 g/t Ag,  0.02% Cu, 0.2% Pb, and 0.5% Zn (129 g/t AgEq) over 0.5m, and plus 0.2 g/t Au, 197 g/t Ag, 0.07% Cu, 0.1% Pb, and 0.02% Zn (222 g/t AgEq) over 1.2m.
  • Sailfish Royalty Corp., presented an updated mineral resource estimate on its Gavilanes property in Durango. The estimated underground inferred resources using a cutoff of 100 g/t AgEq,  are 2,883,000 tonnes of 207 g/t Ag, 0.15 g/t Au, 0.12% Cu, 0.6% Pb, and 0.4% Zn to contain 27.15M Lb Zn. 18.9M Oz Ag, 13.7K Oz Au, 7.77M Lb Cu, 37.9M Lb Pb, and 27.2M Lb Zn.

ON DEALS AND CORPORATE ISSUES

  • Fabled Silver Gold Corp., announced proposed spinout of its copper assets into Fabled Copper Corp. Fabled will continue to focus on advancing its drill program on the Santa Maria silver property in Chihuahua.
  • Chesapeake Gold Corp., announced results from its annual general meeting of shareholders (Metates property, Durango).
  • Comet Resources Limited executed a binding agreement with American International Ventures Inc (AIVN) to acquire 100% interest in the La Sorpresa III tenement to extend its Santa Teresa project in Baja California. La Sorpresa is interpreted as the extension of the existence JORC resource at Santa Teresa. Comet has the right to acquire 51% through acquiring 51% of the shares of a newly established Mexican Company (NewCo) in consideration for Comet paying AIVN a total of AUD $600K to be satisfied by issuing AUD $400K in Comet shares and paying AUD $200K in cash at first completion. To obtain the remainder 49% interest, Comet will have to pay AUD $500K to be satisfied by issuing AUD $300K in Comet shares and paying AUD $200K in cash at second completion. In addition to the above, NewCo has to grant to AIVN a 1.5% NSR.
  • Xali Gold Corp., signed a new exploration and production agreement with Ingenieros Mineros, S.A. de C.V. (IMSA) on El Dorado property in Nayarit. Xali has the obligation to pay IMSA USD $30K per year until the commencement of commercial production, maximum of five years; USD $60K per year after five years or upon commencement of production. Once in production, Xali will pay a NSR of 3.5% until payments reach an aggregate amount of USD $350K of which USD $200K is payable in cash and USD $150K in Xali shares; 3% NSR to an aggregate of USD $600K; 2.5% NSR to an aggregate of USD $850K; and 1% NSR through the life of mine/operations. All annual payments are to be credited towards NSR payments.
  • Riverside Resources Inc., announced that it has recovered from Hochschild Mining the Los Cuarentas project in Sonora. Hochschild terminated the earn-in option after spending approximately USD $1.2M, including a 1,500m drilling program in nine holes. Riverside believes there are still untested seven targets with discovery potential.

ON SOCIAL RESPONSIBILITY

  • Minera San Xavier (New Gold) and the Archdiocese of San Luis Potosí, announced the reopening of the temple of san Pedro Apóstol in Cerro San Pedro, San Luis Potosi. The conservation of the cultural and historical heritage of the place is one of the priorities of the Comprehensive, Inclusive and Participatory Plan for the Closure of Mina, which is why, from the beginning of the extractive activity, implemented a periodic program of topographic measurements to monitor the structural behavior of the building. All the works were coordinated with the Cerro de San Pedro City Council, the Archdiocese of San Luis Potosí and under the strict supervision of the National Institute of Anthropology and History (INAH).
  • The Mining Cluster of Sonora AC announced that it will promote a comprehensive safety and work-family balance in mining. Mining is recognized for working with the highest safety standards and is even below the national average in accident rate according to data from the Mexican Social Security Institute (IMSS) and the Mexican Mining Chamber (CAMIMEX). Mining is an industry that is always in constant training and promotes strategies to generate healthy work environments.

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, rich-silver banded quartz vein in an intermediate –sulphidation epithermal system in a project in Chihuahua, Mexico.  Photo by Miguel A Heredia.

The Mining and Exploration News in Mexico: Highlights on the First Week of May, 2021.

Quartz vein displaying boiling texture.

By Miguel A Heredia

During the 18th week of the year (May 3th to May 9th, 2021), at least 39 press releases were announced by companies working in Mexico, with ten communicating production results, ten disclosing deals and corporate issues, eight informing on exploration results, six reporting on resources and development, and five announcing financial rounds.  ON MEXICO ISSUES, no relevant news.  ON EXPLORATION, In Sonora, Benjamin Hill Mining released additional sampling results from its Benjamin Hill property, Tocvan and its partner Colibri reported results of preliminary metallurgical testing from the El Pilar project, Tarachi presented drilling results from three holes collared at its La Dura mine, and Silver Spruce engaged Eagle Mapping to run a LiDAR survey at its Diamante project . In Chihuahua, Kootenay presented results from six holes drilled at its Columba project.  In Sinaloa, Brigadier announced drilling and rock sampling results from its Picachos property. In Durango, Mithril reported that it continues intersecting high-grade mineralization at El Refugio zone, within its Copalquin project.  ON MINING, Argonaut reported Q1, 2021 production and financial results from its Mexican mine operations. Equinox announced consolidated Q1, 2021 production and financial results from all their mine operations, including Los Filos and Mercedes mines in Guerrero and Sonora states respectively. Golden Minerals reported Q1, 2021 production and financial results from its Rodeo mine in Durango. First Majestic released Q1, 2021 production and financial results from its Mexican mine operations. Gatos Silver announced Q1, 2021 production and financial results from its Los Gatos property in Chihuahua. Great Panther presented Q1, 2021 production and financial results from its Topia and Guanajuato mines. McEwen reported the production of 1,300 Oz AuEq (GEOs) from residual leaching at El Gallo mine in Sinaloa during the first quarter of 2021. Mexus announced a successful blast at its Santa Elena mine in Sonora to produce approximately 10-15K tonnes of mineralized material. Santacruz reported consolidated 2020 full year production and financial results from its Mexican operations.  Sierra Metals announced Q1, 2021 production results from its Bolivar and Cusi mines in Chihuahua. ON FINANCING, Advance Gold granted stock options to its Directors, key employees, and consultants entitling them to purchase, in total, up to 1.8M options over a five year term (Tabasquena project, Zacatecas). Capitan Mining closed a non-brokered private placement for gross proceeds of CAD $3.2M (Peñoles property, Durango). GoGold closed a bought deal offering of 10M common shares for gross proceeds of CAD $25M (Los Ricos property, Jalisco). Heliostar closed a brokered private placement for gross proceeds of $5.6M (Cumaro project, Sonora). Telson informed that it has received the initial USD $2M proceeds from the total USD $5M silver stream agreement with Empress Royalty (Tahuehueto project, Durango). ON RESOURCES AND DEVELOPMENT, Endeavour intersected high-grade silver-gold mineralization at the Guanacevi mine in Durango. Zacatecas Silver announced it will commence a 10,000m drilling program at its Panuco silver project in Zacatecas, once it received the final drill permit. Golden Tag identified mineralized skarn shoots 265m above the current Fernandez Zone resource envelope at its San Diego property in Durango. GR Silver reported results from its ongoing drilling program at its Plomosas project in Sinaloa. VanGold provided initial results from its ongoing diamond drill program at its El Pinguico project in Guanajuato. Silver Viper released a maiden Au-Ag mineral resource estimate at its la Virginia project in Sonora.   ON DEALS AND CORPORATE ISSUES, Advance Gold appointed a new member to its Board of Directors (Tabasquena property, Zacatecas). Equinox announced results from its annual general meeting of shareholders (Los Filos mine, Guerrero). Great Panther announced the nomination of two new directors for election to its Board of Directors at its annual general meeting to be held on June 9, 2021 (Topia mine, Durango).  One World Lithium announced the engagement of an European consultant that may include individual introduction and corporate presentations (Salar del Diablo project, Baja California). Colibri signed a definitive deal with Silver Spruce on Diamante Gold and Silver project in Sonora.   GR Silver made the final option payment to SSR Mining to close the acquisition of 100% interest of San Marcial Silver project in Sinaloa. Magna Gold announced that it has made the final payment for the acquisition of its San Francisco mine in Sonora. Oroco entered into an agreement to increase its interest on Santo Tomas property in Sinaloa. Orogen provided an update about the royalty on the Ermitaño property in Sonora. Chinas’ Ganfeng Lithium said it has offered to buy the shares it does not already own in Mexico-focused Bacanora Lithium for up to 190M pounds (USD $264.5M).  ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUES

  • No relevant news.

ON EXPLORATION

  • Benjamin Hill Mining Corp., released additional sampling results from its Benjamin Hill property, in Sonora state, which comprises Sonora Gold and Sonora Copper concessions. A total of 447 chip/channel samples were collected during March and April, 2021 returning encouraging results with multiple samples ranging from 4 to 8 g/t Au, with a peak of 31.4 g/t Au.  The company has extended the mineralized structure for over 500m to the north-west, increasing the length of the mineralized structure now to 2,400m. “Fifty-nine samples returned gold values over 2 g/t Au with eight samples ranging from 7.5 g/t Au to 31.4 g/t Au. Nine samples taken from the Caracahui vein returned copper values over 1.0% with three samples above 2% and the best sample returning an impressive 8.3% Cu”. Geologists were also able to identify a large area of disseminated gold ranging from 350m to 600m in width. The company is planning to commence a drill testing program. It has already applied for drill permits and expects to receive permits within the next several weeks.
  • Tocvan Ventures Corp., and its partner Colibri Resource Corporation reported results of preliminary metallurgical testing from the El Pilar project in Sonora, which includes Au recoveries of 91.6% and 90.6% at a retention time of 48 hours from two composite samples collected from drill hole JES-20-32.
  • Tarachi Gold Corp., presented drilling results from three underground holes collared at its La Dura mine in Sonora. Significant drill intercepts were encountered in hole JAB-21-009 with 6.91 g/t Au over 63.4m, including 17.42 g/t Au over 9.3m, plus another interval with 17.37 g/t Au over 13.9m, including 33.66 g/t Au over 5.6m; and hole JAB-21-10 with 1.79 g/t Au over 42m. These drill results confirm the continuation of gold mineralization down-dip towards the east. “Based on the drilling and mapping done to date, gold is hosted in a 10-20m thick panel of heavily silicified rhyodacite striking roughly north-south, dipping to the east at an approximate angle of 30 and plunging to the south at 25°”.
  • Silver Spruce Resources Inc., engaged Eagle Mapping to run a LiDAR survey at its Diamante project in Sonora. “The LiDAR mapping over the property will provide another value-added 3D element to complement the geological and structural mapping, and enhance the topographic control for the Phase 1 drilling program”.
  • Kootenay Silver Inc., presented results from six holes drilled at its Columba project in Chihuahua. Significant drill intercepts were encountered in hole CDH-21-90 with 503 g/t Ag, 0.1% Pb, and 0.2% Zn over 1.2m, including 889 g/t Ag, 0.2% Pb, and 0.4% Zn over 0.55m, and 185 g/t Ag, 0.1% Pb, and 0.2% Zn over 3.94m, including 245 g/t Ag, 0.1% Pb, and 0.3% Zn over 2.4m, including 365 g/t Ag, 0.2% Pb, and 0.6% Zn over 0.6m; hole CDH-21-89 with 285 g/t Ag, 0.2% Pb, and 0.8% Zn over 6.9m, including 439 g/t Ag, 0.3% Pb, and 1.5% Zn over 0.27m, including 533 g/t Ag, 0.3% Pb, and 1.2% Zn over 0.65m, and other interval of 233 g/t Ag, 0.03% Pb, and 0.4% Zn over 4m, including 411 g/t Ag, 0.03% Pb, and 0.05% Zn over 1m; and hole CDH-21-87 with 200 g/t Ag over 4m, including 559 g/t Ag over 1.09m.
  • Brigadier Gold Limited, announced drilling and rock sampling results from its Picachos property located in Sinaloa. Hole DH-BGR-043 encountered 0.52 g/t Au, 5 g/t Ag, and 0.07% Cu over 14.5m, including 7.63 g/t Au, 11 g/t Ag, and 0.26% Cu over 0.5m. Brigadier has completed 4,538m in 43 holes to date. On the other hand, Brigadier continues mapping and sampling prospects and workings in the entire property. Encouraging results were obtained from El Placer Norte with samples returning 12.79 g/t Au and 8 g/t Ag over 1m wide, and 38.88 g/t Au and 22 g/t Ag over 0.5m. At El Cobre area, located about 650m NW of El Placer Norte area, the rock sampling returned 57 g/t Ag, 2.12% Cu, and 0.12% Pb over a width of 1.7m from the El Cobre Vein; 108 g/t Ag, 3.2% Cu, and 0.5% Pb over a width of 0.5m from El Herrero Vein; and 148 g/t Ag, 0.33% Cu, and 0.26% Pb over a width of 0.7m from the Calzada Vein.
  • Mithril Resources Ltd., reported that it continues intersecting high-grade mineralization at El Refugio zone, within its Copalquin project.  Highlights include hole CDH-63 with  5.32 g/t Au, 105 g/t Ag over 8m, including 29.9 g/t Au and 273 g/t Ag over 1.09m; hole CDH-62 with 4.12 g/t Au and 107 g/t Ag over 4.82m, including 7.94 g/t Au and 211 g/t Ag over 1.6m, plus 4.68 g/t Au and 22 g/t Ag over 2.1m, plus 0.48 g/t Au and 36 g/t Ag over 3.1m; and hole CDH-61 with 0.95 g/t Au and 25 g/t Ag over 7.75m, plus 0.95 g/t Au and 10 g/t Ag over 0.95m, plus 1.44 g/t Au and 76 g/t Ag over 15.77m. The drill results extended the high-grade mineralization 80m down dip and 180m further to the west and up to further 75m down dip. El Refugio continues to grow as a large high-grade Au-Ag target.

ON MINING

  • Argonaut Gold Inc., reported Q1, 2021 production and financial results from its Mexican mine operations. At El Castillo Complex in Durango The company milled 5,274,000 tons of 0.28 g/t Au to produce 29,243 Oz Au and 164,226 Oz Ag (31,175 AuEq Oz (GEOs)). Argonaut reduced the cash cost per Oz Au sold to USD $916. At La Colorada in Sonora , Argonaut mined 1,227,000 tonnes of 0.54 g/t Au to produce 15,894 Oz Au and 52,912 Oz Ag (16,516 GEOs). It reduced the cash cost per Oz Au sold to USD $765. The company also announced the discovery of  high-grade gold veins below  the El Crestón open pit which returned 44.6 g/t Au and 275 g/t Ag over 21.3m, including 98.9 g/t Au and 30 g/t Ag over 12.2m.
  • Equinox Gold Corp., announced consolidated Q1, 2021 production and financial results from all their mine operations, including Los Filos and Mercedes mines in Guerrero and Sonora states respectively. The company produced 129,233 Oz Au and sold 128,555 Oz Au at cash and AISC of USD $1,141 and USD $1,482 per Oz Au respectively. The company reported revenues of USD $229.7M, net income of USD $50.3M, adjusted EBITDA of USD $60.5M, cash and cash equivalents of USD $317.5M, net debt of USD $2290.8M, and operating cash flow before changes in non-cash working capital of USD $62M. Equinox also provided a 2021 production guidance of 600K to 665K Oz Au, of which 170K-190K will be produced at its Los Filos mine in Guerrero and 30K to 35K Oz Au, will be produced at its Mercedes mine in Sonora.
  • Golden Minerals Company reported Q1, 2021 production and financial results from its Rodeo mine in Durango. It produced 1,559 Oz AuEq in doré and sold 1,054 Oz AuEq. Golden reported revenue of USD $1.8M, cost of metals sold of USD $1.5M, and net operating margin of USD $0.2M.The company also reported cash and cash equivalents balance of USD $ 8M as of March 31, 2021, and a net loss of USD $3.2M.
  • First Majestic Silver Corp., released Q1, 2021 production and financial results from its Mexican mine operations. The table below shows figures by mine:

First Majestic reported revenues of USD $100.5M, mine operating earnings of USD $28.1M, net earnings of USD $1.9M, and a strong working capital of USD $232.8M, including USD $65M of undrawn revolving credit facility.

  • Gatos Silver Inc., announced Q1, 2021 production and financial results from its Los Gatos property in Chihuahua. Gatos mined 209,832 tonnes to produce 6,312 tonnes of Pb concentrates with grades of 6,314 g/t Ag, 5.6 g/t Au, 54.8% Pb, and 12.9% Zn, and 7,036 tonnes of Zn concentrate of 757 g/t Ag, 0.6 g/t Au, 1.4% Pb, and 55.2% Zn, to recover 1.5M Oz Ag, 1.1K Oz Au, 7.6M Lb Pb, and 8.6M Lb Zn, at an AISC cost, net of by-product credits of $19.76 per Oz Ag, which includes approximately $2.50 per Oz Ag related to non-recurring costs attributed to COVID-19 and lower produced ounces related to the power outage experienced earlier in the year. Gatos reported sales for $46.3M, operating expenses of $35.5M, other expenses of $3.9M, and net income of $6.9M.
  • Great Panther Mining Limited presented Q1, 2021 production and financial results from its Topia and Guanajuato mines. At Guanajuato mine complex, Guanajuato, it mined 40,321 tonnes and milled 39,665 tonnes of 124 g/t Ag and 1.53 g/t Au to produce 135,737 Oz Ag and 1,689 Oz Au (279,306 Oz AgEq) at cash and AISC of $22.57 and $33.42 per payable Oz Ag respectively. At Topia, Durango,  the company  mined 16,654 tonnes and milled 19,004 tonnes of 398 g/t Ag, 0.87 g/t Au, 2.93% Pb, and 3.6% Zn to produce 224,333 Oz Ag, 293 Oz Au, 1.18M Lb Pb, and 1.39M Lb Zn (363,318 Oz AgEq) at cash and AISC of $15.88 and $18.71 per payable Oz Ag respectively.
  • McEwen Mining Inc., reported the production of 1,300 Oz AuEq (GEOs) from residual leaching at El Gallo mine in Sinaloa during the first quarter of 2021.  Operations were disrupted for three weeks by a blockade of the mine entrance by members of the local community, which has been resolved.
  • Mexus Gold US announced a successful blast in the Quartz 2 vein area at its Santa Elena mine in Sonora to produce approximately 10-15K tonnes of mineralized material. The company believes this material will show between 2 to 4 g/t Au average.
  • Santacruz Silver Mining ltd., reported consolidated 2020 full year production and financial results from its Mexican operations. The company processed 201,585 tonnes to produce 1M Oz AgEq at cash and AISC of $23.04 and $24.41 per Oz AgEq respectively. The company sold 662.5K Oz AgEq. The company recorded revenues of $33,097 and a net loss of $1,493.
  • Sierra Metals Inc., announced Q1, 2021 production results from its Bolivar and Cusi mines in Chihuahua. At Bolivar mine, the company processed 371,608 tonnes of 0.19 g/t Au, 20 g/t Ag, and 0.77% Cu to produce 1,591 Oz Au, 197K Oz Ag, and 5.2M Lb Cu 7.28M Lb CuEq), at a cash and AISC of USD $1.58 and USD $2.91 per Lb CuEq respectively. At Cusi mine, Sierra Metals processed 76,602 tonnes of 0.16 g/t Au, 157 g/t Ag, and 0.2% Pb to produce 155 Oz Au, 313K Oz Ag, and 268K Lb Pb (334K Oz AgEq), at cash and AISC of USD $18.72 and USD $30.28 per Oz AgEq respectively.

ON FINANCING

  • Advance Gold Corp., granted stock options to its Directors, key employees, and consultants entitling them to purchase, in total, up to 1.8M options over a five year term expiring May 2025 at an exercise price of $0.08 per share.  (Tabasquena property, Zacatecas).
  • Capitan Mining Inc., closed a non-brokered private placement for gross proceeds of CAD $3.2M. Gross proceeds will be used to advance exploration and corporate development activities at its Peñoles property in Durango.
  • GoGold Resources Inc., closed a bought deal offering of 10M common shares at a price of CAD $2.50 per common share for gross proceeds of CAD $25M. Underwriters of the offering exercised their overallotment option in full for an additional 1.5M common shares for gross proceeds of approximately CAD $3.75M.  The net proceeds of the offering will be used to support the continued advancement of the Company’s Los Ricos North and South projects in Jalisco and for general corporate purposes.
  • Heliostar Metals Limited closed a brokered private placement for gross proceeds of $5.6M. Part of the gross proceeds will be used to advance Cumaro, Lola and Oso Negro projects in Sonora, as well as for working capital and general corporate purposes. 
  • Telson Mining Corporation informed that it has received the initial USD $2M proceeds from the total USD $5M silver stream agreement with Empress Royalty for its Tahuehueto project in Durango. The stream is part of a USD $25M full financing solution being provided by Empress, Accendo Bank and Endeavour Financial.

ON RESOURCES AND DEVELOPMENT

  • Endeavour Silver Corp., intersected high-grade silver-gold mineralization to expand the El Curso orebody at its Guanacevi mine in Durango. Significant drill interceptions were encountered in hole UCM-48 with 3.27 g/t Au and   2,753 g/t Ag (2,982 g/t AgEq) over a true width (TW) of 4.1m, including 0.6 g/t Au and 18,752 g/t Ag (18,794 g/t AgEq) over a TW of 0.3m; and hole UCM-50 with 4.29 g/t Au and 3,464 g/t Ag (3,764 g/t AgEq)  over a TW of 2.6m, including 25.7 g/t Au and 19,390 g/t Ag (21,189 g/t AgEq) over a TW of 0.3m. The Company is currently producing from three orebodies at Guanacevi: Milache, El Curso and SCS.  Exploration drilling is ongoing at El Curso and SCS.
  • Zacatecas Silver Corp., announced it will commence a 10,000m drilling program at its Panuco silver project in Zacatecas, once it received the final drill permit. The plan is to start drilling at its Panuco silver deposit and San Gill Breccia Zone by securing an access agreement with the Ejido “Panuco”. The Panuco Silver Deposit has an historic inferred mineral resource of 19,472,901 Oz AgEq (cut-off 100 g/t AgEq) from 3,954,729 tonnes at 153.2 g/t AgEq (136 g/t Ag, 0.14 g/t Au, 0.012% Pb, and 0.11% Zn). “San Gill Breccia Zone has a strike length of approximately 800m, is up to 40 m wide, and is most likely vertical.  The north-south orientation of the breccia is highly significant as gold-rich epithermal veins within the district are generally oriented north-south”.
  • Golden Tag Resources Ltd., identified mineralized skarn shoots 265m above the current Fernandez Zone resource envelope at its San Diego property in Durango.   Significant drill assays were encountered in hole 21-54 with 0.09 g/t Au, 27 g/t Ag, 0.7% Pb, 0.6% Zn, and 0.03% Cu (92 g/t AgEq) over 99.53m, including 0.25 g/t Au, 81 g/t Ag, 2.1% Pb, 2.2% Zn, and 0.1% Cu (286 g/t AgEq) over 18.43m, and others mineralized intervals of  0.12 g/t Au, 109 g/t Ag, 2.5% Pb, 1.7% Zn, and 0.04% Cu (287 g/t AgEq) over 1.64m and 0.5 g/t Au, 15 g/t Ag, 0.3% Pb, 0.3% Zn, and 0.01% Cu (83 g/t AgEq) over 12.35m; and hole 21-55 with 0.08 g/t Au, 37 g/t Ag, 0.3% Pb, 0.6% Zn, and 0.02% Cu (85 g/t AgEq) over 25.55m, including 0.04 g/t Au, 44 g/t Ag, 0.4% Pb, 0.8% Zn, and 0.02% Cu (100 g/t AgEq) over 10.9m, including 0.14 g/t Au, 45 g/t Ag, 0.3% Pb, 0.6% Zn, and 0.02% Cu (94 g/t AgEq) over 9.10m. This hole also intersected 0.96 g/t Au, 59 g/t Ag, 0.6% Pb, 0.4% Zn, and 0.03% Cu (183 g/t AgEq) over 0.5m, 0.2 g/t Au, 50 g/t Ag, 1% Pb, 0.5% Zn, and 0.02% Cu (125 g/t AgEq) over 0.79m, and 0.09 g/t Au, 83 g/t Ag, 0.5% Pb, 0.4% Zn, and 0.04% Cu (130 g/t AgEq) over 0.6m. “Drill results, in conjunction with results from previous drilling, have identified the existence of potential shoots of skarn mineralization commencing approximately 265 m above the Fernandez Zone, which could connect or be parallel to the western edge of Fernandez”.
  • GR Silver Mining Ltd., reported results from its ongoing drilling program at the San Juan Vein within its Plomosas project in Sinaloa. Significant drill intercepts were encountered in hole  SJS21-04 with 242 g/t Ag, 0.31 g/t Au, 0.4% Pb, and 0.8% Zn (310 g/t AgEq) over a true width (TW) of 10.5m, including 954 g/t Ag, 1.29 g/t Au, 1.2% Pb, 1.6% Zn, and 0.1% Cu (1,177 g/t AgEq) over a TW of 2m, including 1,184 g/t Ag, 2.27 g/t Au, 1.3% Pb, and 0.9% Zn (1,486 g/t AgEq) over a TW of 1m; hole LRD-52 with 311 g/t Ag, 0.08 g/t Au, 0.8% Pb, and 0.2% Zn (354 g/t AgEq) over a TW of 3.9m, including 781 g/t Ag, 0.21 g/t Au, 1.5% Pb, and 0.3% Zn (863 g/t AgEq) over a TW of 1m; and hole LRD-37 with 62 g/t Ag, 0.31 g/t Au, 0.6% Pb, and 0.4% Zn (126 g/t AgEq) over a TW of 20.2m, including 154 g/t Ag, 0.96 g/t Au, 1.2% Pb, and 0.4% Zn (308 g/t AgEq) over a TW of 5.7m. “The high-grade silver mineralization encountered in the San Juan Vein confirms continuity of the mineralization close to surface, 100m to the north along strike, and also correlates with previously identified high-grade mineralization at depth”.
  • VanGold Mining Corp., provided initial results from its ongoing diamond drill program at its El Pinguico project in Guanajuato.  Eight holes were drilled of which the two first holes were collared outside of the mine in the patio of the portal of adit 4. These holes were not intended as traditional exploration holes. Holes P21-01 and P21-02 were collared to test the purchased rig but encountered noticeable visible vein material, which the company now interprets to be extensions of the San Jose vein. A third hole, P21-03, was collared to test the area for further vein extensions, and intersected several intervals of significant gold and silver values, including 0.38 g/t Au and 88 g/t Ag (116 g/t AgEq) over 4.05m, including 1.5 g/t Au and 122 g/t Ag (242 g/t AgEq) over 1m, plus an additional higher-grade interval of  2.11 g/t Au and 505 g/t Ag (674 g/t AgEq) over 0.55m. The rig was moved into El Pinguico mine where the company drilled holes P21-05 to P21-08. Holes P21-05 and P21-06 intercepted   long sections of alteration crossing both San Jose and El Pinguico veins but only moderate widths of moderate Ag-Au values were encountered.  Hole P21-07 encountered quartz and carbonate material of an unknown vein and at the San Jose contact the hole intercepted broken, unconsolidated material (approximately 35% recovery) and a void causing to abandon the hole. Hole P21-08 encountered numerous intervals of good grade material, being the most significant one returning 8.81 g/t Au and 208 g/t Ag (913 g/t AgEq) over 0.75m. Four additional holes (P21-09 to P21-12) were drilled from San Jose Cross Cut #1 but assay results are pending.
  • Silver Viper Minerals Corp., released a maiden Au-Ag mineral resource estimate at its la Virginia project in Sonora.   El Rubi Zone contains an indicated resource of 6,179,000 tonnes of 0.78 g/t Au and 35 g/t Ag for 154.3K Oz Au and 6.93M Oz Ag, and inferred resources of 3,255,000 tonnes of 0.9 g/t Au and 36 g/t Ag for 94.1K Oz Au and 3.75M Oz Ag in open pit category. Virginia, El Oriental, Las Huatas and Las Huatas South add and inferred resource of 6,622,000 tonnes of 0.71 g/t Au and 41 g/t Ag for 152.2K Oz Au and 8.74M Oz Ag in open pit category, and 277K tonnes of 1.92 g/t Au and 62 g/t Ag for an additional 14K Oz Au and 451.5K Oz Ag in the underground category. Gold and Silver Equivalents for Indicated resource equal 253,286 Oz AuEq or 17,730,000 Oz AgEq. Gold and Silver Equivalents for Inferred resource equal 445,176 Oz AuEq or 31,162,300 Oz AgEq.

ON DEALS AND CORPORATE ISSUES

  • Advance Gold Corp., appointed a new member to its Board of Directors (Tabasquena property, Zacatecas).
  • Equinox Gold Corp., announced results from its annual general meeting of shareholders (Los Filos mine, Guerrero).
  • Great Panther Mining Limited announced the nomination of two new directors for election to its Board of Directors at its annual general meeting to be held on June 9, 2021 (Topia mine, Durango). 
  • One World Lithium Inc., announced the engagement of an European consultant that may include individual introduction and corporate presentations. The Agreement is for one year to May 04, 2022. The Consultant will be paid a monthly fee of 5,000 Euros   (CAD $7,400) and an option to purchase up to 800K common shares of the company at an exercise price of $0.11 per common share, being the closing price of the Company’s common shares on the Canadian Stock Exchange on May 4, 2021. The stock options are exercisable on or before May 04, 2023 and will be vested as to 200K options every two months from June 01 to December 01, 2021 (Salar del Diablo project, Baja California).
  • Colibri Resources Corporation signed a definitive deal with Silver Spruce on Diamante Gold and Silver project in Sonora.  Silver Spruce will have an option to acquire up to 50% of the property. To acquire 25% of the property, Silver Spruce has to pay USD $75K in cash to Colibri. Yaque and Silver Spruce will each then hold a 25% interest and manage the project as equal partners. To earn its initial 50% of the Diamante project from the original vendor, Yaque (together with Silver Spruce)agree to jointly design, permit and drill a minimum of 2,000 metres on the property within 24 months from the Execution Date of Yaque’s final agreement with the original Vendor.
  • GR Silver Mining Ltd., made the final option payment to SSR Mining to close the acquisition of 100% interest of San Marcial Silver project in Sinaloa. GR paid CAD $2.5M and issued 1.5M common shares to SSR.
  • Magna Gold Corp., announced that it has made the final payment of USD $5M to Argonaut Gold Inc., for the acquisition of its San Francisco mine in Sonora, and provided a promissory note for the remaining balance of USD $2,675,000 to be paid in four monthly installments commencing July, 6, 2021 and ending October 6, 2021. The promissory note bears uncompounded interest at a rate of 5% per annum.
  • Oroco Resource Corp., entered into an agreement to increase its interest on Santo Tomas property in Sinaloa.  Oroco will acquire 25 shares of Xochipala Gold SA de CV for USD $1.5M.
  • Orogen Royalties Inc., provided an update about the royalty on the Ermitaño property in Sonora, operated by its JV partner First Majestic Silver Corp. Orogen holds a 2% NSR of an indicated resources of 355K Oz Au and 5M Oz Ag, and inferred resources of 522K Oz Au and 11M Oz Ag.
  • Ganfeng Lithium Co., Ltd., said it has offered to buy the shares it does not already own in Mexico-focused Bacanora Lithium plc for up to 190M pounds (USD $264.5M). Ganfeng, which in February announced a plan to raise its stake in Bacanora from 17.41% to 28.88%, will acquire the remaining shares in the company for $67.5 pounds a share. The increase in Ganfeng’s stake to 28.88% is expected to complete shortly.

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 quartz vein with stibnite displaying boiling texture in a low-sulphidation epithermal system in a prospect in San Luis Potosi, Mexico.  Photo by Miguel A Heredia.

The Mining and Exploration News in Mexico: Highlights on the Fifth Week of April, 2021

By Jorge Cirett

During the 17th week of the year (April 26th to May 2nd, 2021), at least 34 press releases were announced by companies working in Mexico. To note, six companies posted exploration advances on their properties, six presented mining related news, four posted on financing or share options (including $11.5 M, and $28.7 M), seven more on project development or resource definition and five posted on corporate issues. ON MEXICO ISSUES, no relevant news were published. ON EXPLORATION, In Baja California, Comet Resources informed on mapping and sampling advances at Santa Teresa. In Sonora, Silver Spruce released results from due diligence work at El Diamante; Tarachi Gold updated on work at the Tarachi project; Riverside reported drilling results from Cecilia. In Chihuahua, Radius Gold released results from drilling at Amalia. In Zacatecas, Defiance Silver provided drilling results from San Acacio. ON MINING, Gold Resource, Mag Silver, Alamos Gold, Fresnillo PLC, Coeur Mining and Agnico Eagle released Q1 2021 production results. To note, Fresnillo produced over 12 M Oz Ag and 216 K Oz Au during the period. ON FINANCING, Telson Mining restructured US$3 M in debt. Tarachi granted options to directors, officers and consultants, GR Silver and Prime Mining completed their previously announced placements for $11.5 M and $28.7 M respectively. ON RESOURCES AND DEVELOPMENT, Argonaut Gold released high-grade drilling results from below the pit plan at La Colorada. Telson Mining informed of accelerated construction at Tahuehueto. Sonora Gold released results from 25 RC holes at Cerro Caliche. Southern Silver reported extension of mineralization discovered by recent drilling. Ridgestone Mining is to prepare a new resource estimate on Guadalupe y Calvo. Fabled Silver reported drill results from Santa Maria. Golden Tag is reinterpreting geology at San Diego.   ON DEALS AND CORPORATE ISSUES, Santacruz Silver Mining completed the acquisition of the Zimapan mine. Telson Mining closed the Campo Morado variable purchase price royalty. Fortuna Silver entered into a definitive agreement to purchase Roxgold shares (Africa oriented). Silver Spruce signed the definitive agreement on the Diamante properties in Sonora. Empress Royalty has funded an initial $2 M on the silver stream agreement with Tahuehueto. ON SOCIAL RESPONSIBILITY, Peñoles donated tree saplings in Coahuila.

ON MEXICO ISSUES

  • No Relevant News.

ON EXPLORATION

  • Silver Spruce Resources Inc. released surface rock sample results from El Diamante concessions in Sonora. The assays range from 0.127 gpt Au to 1.195 gpt Au, with up to 837 gpt Ag, 1.2% Pb, 6.9% Zn for the five samples collected as part of the due diligence work in the properties under a LOI. “The Property exhibits geological features of epithermal low to intermediate sulphidation Ag-Au (Pb-Zn), high sulphidation Au-Cu, and potential transition to porphyry style Au-Cu”.
  • Tarachi Gold Corp. informed past drilling at La Dura mine area at the Tarachi project in Sonora returned high-grade intercepts like 20.75 m @ at 5.05 gpt Au and 20.1 m @ 4.54 gpt Au. High grade intercepts seem to be related to sulfide rich zones by the side of breccia pipes.
  • Riverside Resources Inc. and Carlyle Commodities Corp. released further drill results from the Cecilia project in Sonora. Highlighted down hole intercepts comprise 5.65 m @ 0.39 gpt Au; 2.0 m @ 0.78 gpt Au; 1.5 m @ 0.60 gpt Au; 2.3 m @ 0.19 gpt Au; 3.15 m @ 0.31 gpt Au and true width intercepts (tw) of 3.3 m @ 3.70 gpt Au (including 1.3 m @ 8.82 gpt Au); 3.05 m @ 0.67 gpt Au, 1.5 m @ 1.18 gpt Au.
  • Radius Gold Inc. reported final results for phase 4 drilling at the Amalia project in SW Chihuahua. A total of 10,558 m in 31 holes have been completed, with 4,385 m in 10 holes in this phase. Highlighted true width intervals comprise: 14.5 m @ 6.8 gpt Au, 321 gpt Ag; 3.9 m @ 18.34 gpt Au, 813 gpt Ag; 6.5 m @ 0.59 gpt Au, 151 gpt Ag; 13.25 m @ 0.9 gpt Au, 116 gpt Ag. The next targets comprise El Cuervo and California areas, with the first being 3 to 7 m wide and 1.5 km long, while the latter vein is up to 4 m in width, outcropping discontinuously for 3 km.
  • Comet Resources Ltd. informed field mapping and sampling has been completed at its Santa Teresa project in Baja California. Assay results from re-sampling of historical core are awaited and the environmental permit for drilling has been filed.
  • Defiance Silver Corp. provided results from drilling the Veta Grande vein system at San Acacio in Zacatecas. Highlighted intervals comprise 3.64 m @ 0.2 gpt Au, 191 gpt Ag (including 0.92 m @ 0.74 gpt Au, 705 gpt Ag, 0.34% Pb, 0.70% Zn); 18.55 m @ 0.39 gpt Au, 99 gpt Ag (including 1.57 m @ 2.27 gpt Au, 1,090 gpt Ag, 0.72% Pb, 2.33% Zn); 8.35 m @ 0.07 gpt Au, 97 gpt Ag; 23.50 m @ 0.47 gpt Au, 52 gpt Ag, 0.93% Pb, 1.36% Zn (including 4.73 m @ 1.31 gpt Au, 144 gpt Ag, 2.8% Pb, 3.60% Zn); 5.87 m @ 0.17 gpt Au, 125 gpt Ag, 0.22% Pb, 0.61% Zn; 2.65 m @ 0.05 gpt Au, 307 gpt Ag, 0.27% Zn; 8.22 m @ 0.32 gpt Au, 262 gpt Ag, 0.36% Pb, 1.26% Zn.

ON MINING

  • Gold Resource Corp. presented its Q1 2021 production report. During the period 6,097 Oz Au, 307.6 K Oz Ag (10,750 Oz AuEq) at cash cost of $408 per Oz at the Don David mine in Oaxaca.
  • MAG Silver Corp. reported first quarter 2021 production from the Juanicipio project (56% / 44% joint venture with Fresnillo Plc) in Zacatecas. During the period 36.4 K tonnes of development material were processed to produce 462.3 K Oz Ag, 697 Oz Au, of which 203.4 K Oz Ag, 307 Oz Au were attributable to MAG Silver.
  • Alamos Gold Inc. released its first quarter 2021 production report, with figures from its Mexican operations. At Mulatos, in Sonora, 910.9 K tonnes were mined, 2.46 M tonnes of waste moved, stacking 1.83 M tonnes of ore @ 0.93 gpt Au containing 54,723 Oz Au. During the period 35,600 Oz Au were produced at cash cost $915 per Oz Au and mine-site AISC of $1,039 per Oz Au. The nearby La Yaqui Grande project is being developed with independent heap leach and crushing circuits, with commercial production expected in Q3 2022. Production is expected to reach 123 K Oz Au per year at an AISC of $578 per Oz Au.
  • Fresnillo PLC. released its first quarter 2021 production report, which amounted to 12.63 M Oz Ag (including silver stream), 228,193 Oz Au, 15,340 tonnes Pb, 25,881 tonnes Zn.
  • Coeur Mining Inc. reported first quarter 2021 financial results, including figures from its Mexican operations. At Palmarejo, in Chihuahua, 484.4 K tonnes were milled @ 1.87 gpt Au, 127 gpt Ag, recovering 95.7% Au, 81.3% Ag to produce 28,605 Oz Au, 1.6 M Oz Ag. A total of 16,525 m were drilled in the period, in which $3 M were spent in exploration.
  • Agnico Eagle Mines Ltd. disclosed Q1 2021 results, including figures from its operations in Mexico. At Pinos Altos, in Chihuahua, 493 K tonnes were processed at a rate of 5,478 tonnes per day and a grade of 1.91 gpt Au, to produce 29,175 Oz Au at cash cost $838 per Oz. At La India, in Sonora, 1.64 M tonnes were processes at a rate of 18.244 tpd and a grade of 0.43 gpt Au, to produce 17,033 Oz Au at cash cost $936. At Santa Gertrudis, exploration in the period included 8,970 m in 22 holes. Additional drilling and metallurgical testing are planned to continue

ON FINANCING

  • Telson Mining Corp. has restructured debt owed to Estrategias Corporativas en Finanzas, S.A.P.I de C.V.. The MXP $64.7 M debt has been converted to USD$3.1 M at 10% interest on a 36 month term and 12 month grace period. “In consideration of the loan restructuring of this debt, the Company has agreed to issue to Escorfin, 500,000 bonus shares and 1,500,000 bonus warrants” (Tahuehueto, Durango).
  • Tarachi Gold Corp. granted 1.2 M options to directors, officers and consultants (Tarachi, Sonora).
  • GR Silver Mining Ltd. completed its previously announced bought deal private placement for gross proceeds of $11.53 M, which was oversubscribed (Plomosas, Sinaloa).
  • Prime Mining Corp. completed its previously announced bought deal private placement, for gross proceeds of $28.75 M (Los Reyes, Sinaloa).

ON RESOURCES AND DEVELOPMENT

  • Argonaut Gold Inc. announced the discovery of high grade gold veins below the El Crestón open pit at its La Colorada mine in Sonora. Selected true width (TW) drill results comprise 16.3 m @ 3.88 gpt Au, 10 gpt Ag (including 5.8 m @ 9.28 gpt Au, 24 gpt Ag); 29.3 m @ 3.71 gpt Au, 7 gpt Ag; 16.5 m @ 44.59 gpt Au, 275 gpt Ag (including 2.4 m @ 283.10 gpt Au, 858 gpt Ag; 14.8 m @ 1.45 gpt Au, 3 gpt Ag; 17.0 m @ 3.92 gpt Au, 3 gpt Ag; 10.8 m @ 4.86 gpt Au, 188 gpt Ag (including 2.8 m @ 18.39 gpt Au, 686 gpt Ag); 16.1 m @ 5.45 gpt Au, 111 gpt Ag (including 2.8 m @ 31.09 gpt Au, 515 gpt Ag); 48.6 m @ 0.77 gpt Au 22 gpt Ag; 9.9 m @ 98.85 gpt Au, 30 gpt Ag (including 2.5 m @ 383.00 gpt Au, 113 gpt Ag); 4.8 m @ 18.39 gpt Au, 5 gpt Ag (including 1.2 m @ 60.20 gpt Au, 6 gpt Ag); 40.2 m @ 5.22 gpt Au, 44 gpt Ag. “The high-grade zones are deep extensions of the gold rich veins now being mined within the El Crestón open pit and display good lateral continuity along strike”.
  • Telson Mining Corp. informed construction work was accelerated at the Tahuehueto project in Durango, where a 1,000 tpd mining operation is being developed. Construction and commissioning is estimated at US$15.4 M, of which C$10.1 M were raised in March and in mid-April a silver stream agreement was signed with Empress that will provide US$5 M in two tranches. “The final US $12 million Accendo Banco loan facility is in the late stages of documentation and expected to close in the coming weeks along with the restructuring of Telson outstanding loans with Trafigura and Nyrstar“.
  • Sonoro Gold Corp. reported assay results from 25 RC holes drilled at its Cerro Caliche project in Sonora. Highlighted drill-length intervals comprise 16.77 m @ 1.84 gpt Au (including 4.57 m @ 5.63 gpt Au); 7.62 m @ 2.42 gpt Au (including 1.52 m @ 10.6 gpt Au); 12.19 m @ 1.07 gpt Au, 25.91 m 0.58 gpt Au. El Colorado zone was expanded in three directions, the Cabeza Blanca vein zone was extended ant drilling at Buena Vista-Japoneses suggest potential coalescence with the Buena Suerte zone.
  • Southern Silver Exploration Corp. reported further drilling results that extend mineralization at its Cerro Las Minas project in Durango. At Mina La Bocona area, polymetallic sulfide true width intercepts comprise 7.5 m @ 262 gpt Ag, 0.1 gpt Au, 7.0% Pb, 1.7% Zn (559 gpt AgEq); 4.0 m @ 161 gpt Ag, 0.2 gpt Au, 8.8% Pb, 2.4% Zn (293 gpt AgEq); 2.4 m @ 335 gpt Ag, 0.2 gpt Au, 0.3% Cu, 5.3% Pb, 2.4% Zn (638 gpt AgEq).   
  • Ridgestone Mining Inc. engaged an independent consultant to prepare a NI 43-101 mineral resource estimate for the Guadalupe y Calvo project in Chihuahua.
  • Fabled Silver Gold Corp. reported drill results on the North Vein Structure at its Santa Maria project in Chihuahua. Highlighting intercepts of 26.90 m @ 0.047 gpt Au, 29 gpt Ag, 0.17% Zn (including 1.20 m @ 0.041 gpt Au, 108 gpt Ag, 0.27% Zn and 4.40 m @ 0.062 gpt Au, 83 gpt Ag and 2.20 m @ 0.017 gpt Au, 118 gpt Ag).
  • Golden Tag Resources Ltd. initiated a geologic interpretation of the San Diego deposit in Durango. The lithology, alteration, structure and assay datasets will be reviewed and incorporated on a 3 D platform. The focus of the program is to evaluate the recently identified potential for near surface skarn mineralization.

ON DEALS AND CORPORATE ISSUES

  • Santacruz Silver Mining Ltd. completed the previously announced acquisition of the Zimapan mine assets from Grupo Peñoles, with the transaction facilitated by Trafigura with a US$17.6 M loan facility.
  • Telson Mining Corp. closed the purchase of the Nyrstar Campo Morado variable purchase price royalty by issuing 14.6 M shares to Nyrstar.
  • Fortuna Silver Mines Inc. and Roxgold Inc. entered into a definitive agreement for Fortuna to acquire all Roxgold shares. “Upon completion of the Transaction, existing Fortuna and Roxgold shareholders will own approximately 64.3% and 35.7% of the pro forma company, respectively……. Roxgold owns and operates the high-grade Yaramoko Gold Mine located on the Houndé greenstone belt in Burkina Faso and is also advancing the development and exploration of the Séguéla Gold Project located in Côte d’Ivoire”.  
  • Silver Spruce Resources Inc. signed the definitive agreement with Colibri Resources on the Diamante 1 and Diamante 2 concessions in Sonora. Silver Spruce can acquire up to 50% interest on the 1,057 hectares spanning both projects. The deal involves a third Mexican private company.
  • Empress Royalty Corp. has funded the initial payment of $2 M of the $5 M silver stream agreement on the Tahuehueto project, Durango, owned by Telson Mining Corp.. The Stream is part of a US$25M full financing solution being provided to Telson by Empress and its partners, Accendo Banco and Endeavour Financial.  

ON SOCIAL RESPONSIBILITY

  • Peñoles donated 5,000 tree saplings to San Pedro de Las Colonias, Coahuila.

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

On the image below:  A breccia outcrop from a project in Sinaloa. Picture by Jorge Cirett.

The Mining and Exploration News in Mexico: Highlights on the Fourth Week of March, 2021.

Orogenic Gold Vein

By Miguel A Heredia

During the twelfth week of the year (March 22th to March 28th, 2021), at least 26 press releases were announced by companies working in Mexico and 4 news published by the media, with seven disclosing deals and corporate issues, seven reporting on resources and development, five announcing financial rounds, five informing on exploration resources, three commenting on Mexican issues, two discussing social issues, and one communicating production and financial results.  ON MEXICO ISSUES, Americas Gold and Silver announced that its Cosala mine in Sinaloa continue on care and maintenance after a group of individuals blocked illegally their operation since last February 2020. The head of the Tax Administration Service (SAT), Raquel Buenrostro, declared that Mining companies pay only 0.0002% of their income in taxes, however, Fernando Alanís, president of the Mexican Mining Chamber (Camimex), stated that mining in Mexico has higher taxes than those of its direct competitors. Mexico’s rich mining industry has been the basis for the success of the automotive industry for more than 500 years. ON EXPLORATION, In Sonora, Silver Tiger reported results from two holes collared at its El Tigre project. In Chihuahua, Radius completed the phase four drilling at its Amalia project.  In Sinaloa, Kootenay commenced a 3,500m core drilling program at its Copalito project, and Brigadier reported that it has rehabilitated, mapped and sampled over 29 newly discovered historic mine workings in the central part of its Picachos project. In Durango, Mithril provided an update on the exploration activities carried out at its Copalquin property. ON MINING, Impact Silver reported the 2020 full year production and financial results from its Zacualpan mine in the State of Mexico. ON  FINANCING, Empress closed its previously announced bought deal offering for gross proceeds of CAD $15.75M, and also closed a non-brokered private placement for gross proceeds of CAD $650K (Pinos project, Zacatecas). Fabled commenced to trade on the OTCQB Venture Marketplace under the symbol “FBSGF” (Santa Maria property, Chihuahua). Gold Resource declared March 2021 monthly dividend (Arista mine, Oaxaca). Silver Spruce granted 250K stock options to a consultant of the company with an exercise price of $0.06 per share (El Mezquite project, Sonora). VanGold granted stock options to officers and directors of the company (El Pinguico property, Guanajuato).  ON RESOURCES AND DEVELOPMENT, Fabled release assay results of hole SM 20-06 from its ongoing 8,000m drilling program on its Santa Maria project at Chihuahua. Golden Minerals announced expansion drilling at its Rodeo project in Durango. GR Silver released assay results from the current core drilling program from its Plomosas property in Sinaloa. Orla provided an update on the construction of its Camino Rojo mine operation in Zacatecas. Sonoro reported results from 20 RC holes drilled at its flagship property Cerro Caliche in Sonora. Torex announced results from the 2020 infill drilling program at its Media Luna property in Guerrero. Zacatecas Silver reported results from the re-sampling of drill core from its Panuco property in Zacatecas.   ON DEALS AND CORPORATE ISSUES, Agnico announced the appointment of a new member to its Board of Directors (Pinos Alton mine, Chihuahua). Chesapeake announced the resignation of its Director (Metates property, Durango). GoGold presented results from its annual general meeting of shareholders (Los Ricos project, Jalisco). Inomin completed the 100% acquisition of the La Gitana and the Peña Blanca properties in Oaxaca from Gunpoint. Orogen appointed a new member to its Board of Directors (El Ermitaño, Sonora). Telson engaged RB Milestone Group LLC to provide corporate communications advisory, non-deal roadshow advisory, market intelligence advisory, and business referrals to the management team of the company (Tahuehueto project, Durango). ON SOCIAL RESPONSIBILITY, AIMMGM Sonora District Ladies Committee recycles to help children with cancer. Peñasquito mine (Newmont) awarded scholarships to students of the Ignacio López Rayón elementary school.

ON MEXICO ISSUES

  • Americas Gold and Silver Corporation announced that its Cosala mine in Sinaloa continue on care and maintenance after a group of individuals including a small minority of the company´s hourly workforce blocked illegally the operation since last February 2020. Americas has participated in a number of meetings and discussions with senior members of the Mexican federal government to regain access to the operations but the last comments made by the Mexican President on March 17, 2020 related to a possible cancelation of the mining concessions are concerning. The company is confident that there is no basis in the fact or in the law that would diminish the company´s property rights.”The company looks forward to continuing to work with the Canadian government, the Mexican Minister of Economy and the Minister of Foreign Affairs in providing the facts, providing solutions and resolving the issues to avoid an arbitration issue between Canada and Mexico. The company looks with optimism to getting our employees back on the job as soon as possible”.
  • The head of the Tax Administration Service (SAT), Raquel Buenrostro, declared that Mining companies pay only 0.0002% of their income in taxes, however, Fernando Alanís, president of the Mexican Mining Chamber (Camimex), stated that mining in Mexico has higher taxes than those of its direct competitors. “Surely the SAT will have its figures, but what the figures tell us is that mining pays taxes and that it has a higher tax rate than any other economic activity in the country and that if a higher tax burden continues to be imposed, mining it will not be attractive in Mexico”. Raquel Buenrostro assured that in order not to raise taxes, the institution that she heads would review the form of payment in the mining sector. In this same theme, figures contained in a study by Price Waterhouse Coopers assure that in Mexico the tax burden for the mining sector is 51.3% of fiscal profit, which places it well above countries such as Canada, Chile, Peru and the United States, which have tax rates of 30 to 39%. In addition, as of this year, the possibility of deducting 50% of the payment of rights on concessions was removed, so the tax rate rose to 52.6%.
  • Mexico’s rich mining industry has been the basis for the success of the automotive industry for more than 500 years. It was stated by Sergio Almazán, president of the Association of Engineers of Mines, Metallurgists and Geologists of Mexico (AIMMGM). For Francisco Quiroga, former Undersecretary of Mining of the Ministry of Economy, mining has allowed Mexico to extract iron to produce, along with carbon, steel, a key product for automotive manufacturing. Karen Flores, general director of the Mexican Mining Chamber (Camimex), agreed, highlighting that the mining sector contributes 8.3% to the industrial GDP and 2.5% to the national GDP. Mexican auto exports totaled USD $40,495M in 2020.

ON EXPLORATION

  • Silver Tiger Metals Inc., reported results from two holes collared at its El Tigre project in Sonora. Hole ET-21-211 collared in the Sooy Vein encountered 0.11 g/t Au, 131 g/t Ag, 0.06% Cu, and 0.44% Pb (156 g/t AgEq) over 14m, including 0.24 g/t Au, 325 g/t Ag, 0.14% Cu, and 1.21% Pb (385 g/t AgEq) over 4.9m, including 0.67 g/t Au,  1,149 g/t Ag, 0.47% Cu, and 4.3% Pb (1,347 g/t AgEq) over 1.4m, while hole ET-21-213 intercepted 0.02 g/t Au, 246 g/t Ag, 0.29% Cu, 0.05% Pb, and 0.05% Zn (279 g/t AgEq) over 8.4m in the Sooy Vein, including 0.05 g/t Au, 1,260 g/t Ag, 1.41% Cu, 0.04% Pb, and 0.25% Zn (1,355 g/t AgEq), and encountered 0.22 g/t Au, 266 g/t Ag, 0.13% Cu, 0.21% Pb, and 0.14% Zn (304 g/t AgEq) over 7.6m in the Sooy Footwall Zone, including  0.12 g/t Au, 808 g/t Ag, 0.35% Cu, 0.45% Pb, and 0.26 % Zn (871 g/t AgEq) over 2.3m, including 0.17 g/t Au, 3,046 g/t Ag, 1.35 % Cu, 1.54% Pb, and 0.86% Zn (3,254 g/t AgEq) over 0.6m.
  • Radius Gold Inc., drilled 4,386m in ten holes to complete the phase four drilling at its Amalia project in Chihuahua, through its JV partner Pan American Silver Corp. Results for holes AMDD20-22 to AMDD21-25 have been previously reported, with results for holes AMDD21-26 to 31 pending. “Geological teams are now conducting detailed mapping and sampling of the El Cuervo extensions and California vein system. New environmental permits have been submitted for drilling of these targets later this year”.
  • Kootenay Silver Inc., commenced a 3,500m core drilling program at its Copalito project in Sinaloa, to test continuity and size in zones already identified in a previous drilling campaign, as well as to test other undrilled target areas in the property.
  • Brigadier Gold Limited reported that it has rehabilitated, mapped and sampled over 29 newly discovered historic mine workings in the central part of its Picachos project in Sinaloa, near the intersection of the ENE trending Cocolmeca Vein system and northwesterly trending El Placer system. The underground workings are concentrated in two areas named El Cobre and El Placer Norte. Sampling results are pending.
  • Mithril Resources Ltd., provided an update on the exploration activities carried out at its Copalquin property, Durango. Hole CDH-054, collared at La Soledad target returned 10.36 g/t Au and 81 g/t Ag over 4.88m, extending the high-grade mineralization further to the west and down dip. The company also reported that a total of 697 soil samples collected at Los Pinos/El Indio, Los Reyes, Refugio and Zaragoza target areas were analyzed with the XRF analyzer identified strong silver anomalies in the district, with values ranging from less than detection (approximately 2 ppm) to 154 ppm Ag. Samples were considered anomalous at or above 5 ppm Ag. Anomalous silver was identified in all targets. Silver is considered to be a good indicator for hidden veins or portions of known veins that are better mineralized. The soil samples were shipped to the lab for Au assays. Results are pending.

ON MINING

  • Impact Silver Corp., reported the 2020 full year production and financial results from its Zacualpan mine in the State of Mexico. The company milled 140,069 tonnes of 172 g/t Ag to produced 646.5K Oz Ag, at a production cost of $80.82 per tonne produced. Impact reported a net income of $2.3M on $15.6 M in revenue and EBITDA of $2.5 M, and mine operating earnings before amortization and depletion of $3.3M. Cash position at December 31, 2020 was $20.4M and working capital of $20.3M.

ON FINANCING

  • Empress Royalty Corp., closed its previously announced bought deal offering for gross proceeds of CAD $15.75M. In addition to the offering, the company closed a non-brokered private placement by the issue of an additional 1.3M units of the company for gross proceeds of CAD $650K (Pinos project, Zacatecas).
  • Fabled Silver Gold Corp., commenced to trade on the OTCQB Venture Marketplace under the symbol “FBSGF” (Santa Maria property, Chihuahua).
  • Gold Resource Corporation declared March 2021 monthly dividend. The company will paid on April 23, 2021, one-third of a cent for common share to shareholders (Arista mine, Oaxaca).     
  • Silver Spruce Resources Inc., granted 250K stock options to a consultant of the company with an exercise price of $0.06 per share and an expiry date of March 23, 2026. The stock options will vest 1/3 on the date of the grant, 1/3 on the first anniversary of the grant and the final 1/3 on the second anniversary of the grant (El Mezquite project, Sonora).
  • VanGold Mining Corp., granted 6.45M stock options, including 3.45M options to officers and directors of the company. The options, which shall vest over a two-year period, are exercisable up to five years from the grant date and have a strike price of $0.51 (El Pinguico property, Guanajuato). 

ON RESOURCES AND DEVELOPMENT

  • Fabled Silver Gold Corp., release assay results of hole SM 20-06 from its ongoing 8,000m drilling program on its Santa Maria project at Chihuahua. Hole 6 intersected six silver bearing structures including five new mineralized north-south trending structures. It encountered 0.06 g/t Au and 49 g/t Ag (53 g/t AgEq) over 0.4m; 0.15 g/t Au and 45 g/t Ag (53 g/t AgEq) over 5.4m; 0.15 g/t Au and 43 g/t Ag (48 g/t AgEq) over 5.3m; and 0.15 g/t Au and 37 g/t Ag (45 g/t AgEq) over 14.7m, including 0.19 g/t Au and 55 g/t Ag (65 g/t AgEq) over 3m, including 0.2 g/t Au and 79 g/t Ag (89 g/t AgEq) over 0.9m. Fabled has completed drill holes SM 20-07 – 09 for a total of 2,134 meters of the ongoing 8,000 meter drilled program completed to date. Holes SM20-07 – 09 have been sampled and submitted to lab for analysis.  Hole SM 20-10 is in progress. 
  • Golden Minerals Company announced expansion drilling at its Rodeo project in Durango. The drill program will consist of 2,000m to test targets adjacent to the current pit with the aim to extend the life of the Rodeo mine well beyond the currently estimated life around 2.5 years.
  • GR Silver Mining Ltd., released assay results from the current core drilling program from its Plomosas property in Sinaloa.  The most significant drill interception was encountered in hole PL121-107 with a shallower intercept of 63 g/t Ag, 0.03 g/t Au, 0.1% Pb, and 0.1% Zn (73 g/t AgEq) over a true width (TW) of 12.9m, including 126 g/t Ag, 0.03 g/t Au, and 0.1% Zn (132 g/t AgEq) over a TW of 4.8m, and a deeper intercept of 377 g/t Ag, 0.23 g/t Au, 0.7% Pb, and 1.5% Zn (466 g/t AgEq) over a TW of 13.5m, including 633 g/t Ag, 0.2 g/t Au, 0.9% Pb, and 1.5% Zn (726 g7t AgEq) over a TW of 4.5m, including 1,987 g/t Ag, 0.58 g/t Au, 1.9% Pb, and 4% Zn (2,218 g/t AgEq) over a TW of 1m.
  • Orla Mining Ltd., provided an update on the construction of its Camino Rojo mine operation in Zacatecas. Orla reported that 94% of the detailed engineering is competed and 93% of the project purchase orders have been made. “Current construction activities include earthworks, installation of the camp and offices, drilling of back-up water wells and site fence erection. Process pond and reclaim tunnel areas are being excavated and foundations are being prepared for the Merrill Crowe plant, crusher, camp, as well as ancillary buildings. The 33-kV power line to site was approved by the Mexican federal electricity commission in 2020 and construction is currently 73% complete. Fabrication of crushing, conveying, and stacking equipment and the Merrill Crowe plant remain on schedule. Process plant equipment began arriving on site in the fourth quarter of 2020. Deliveries thus far include crushing, stacking, conveying equipment and the Merrill Crowe plant as well as heap leach and solution ponds piping and liners”.
  • Sonoro Gold Corp., reported results from 20 RC holes totalling 1,792m drilled at Buena Suerte and Japoneses zones within its flagship property Cerro Caliche in Sonora. Highlights from Buena Suerte area include hole SCR-201 with 0.74 g/t Au over 14m, including 2.09 g/t Au over 1.52m; hole SCR-203 with 0.71 g/t Au over 9m, including 2.04 g/t Au over 1.53m; hole SCR-205 with 0.59 g/t Au over 14m, including 1.53 g/t Au over 1.53m: hole SCR-207 with 0.62 g/t Au over 5m, including 1.3 g/t Au over 1.52m; hole SCR-209 with 0.77 g/t Au over 57m, including 1.79 g/t Au over 1.53m; hole SCR-211 with 4.77 g/t Au over 5m; and hole SCR-219 with 1.43 g/t Au over 16.76m, including 6.47 g/t Au over 1.52m. Highlights from Japoneses area include hole SCR-204 with 1.35 g/t Au over 10.67m, including 6.33 g/t Au over 1.53m; hole SCR-214 with 0.58 g/t Au over 18.29m, including 1.97 g/t Au over 1.52m;  hole SCR-215 with 0.52 g/t Au over 12.2m, hole SCR-218 with 0.5 g/t Au over 22.86m, including 1.95 g/t Au over 1.52m; and hole SCR-220 with 0.53 g/t Au over 22.86m, including 1.84 g/t Au over 1.53m. “Spacing between the Buena Suerte and Japoneses zones has been reduced to approximately 100 meters in the northern extensions indicating the zones may merge with further infill drilling”.
  • Torex Gold Resources Inc., announced results from the 2020 infill drilling program at its Media Luna property in Guerrero. Aim of the infill drilling program is to upgrade the inferred mineral resources to the indicated category. Highlights include hole ML20-407D with 6.16 g/t Au, 79 g/t Ag, and 3.58% Cu (12.73 g/t AuEq) over a true width (TW) of 13.66m; hole ML20-417D with 11.25 g/t Au, 12 g/t Ag, and 0.64% Cu (12.4 g/t AuEq) over a TW of 11.92M; hole ML20-418D with 5.45 g/t Au, 43 g/t Ag, and 2.48% Cu (9.84 g/t AuEq) over a TW of 22.47m; hole ML20-433D with 9.37 g/t Au, 190 g/t Ag, and 6.6% Cu (22.05 g/t AuEq) over a TW of 14.59m; hole ML20-443D with 9.88 g/t Au, 44 g/t Ag, and 1.72% Cu (13.11 g/t AuEq) over a TW of 13.68m; hole ML20-454D with 9.16 g/t Au, 9 g/t Ag, and 0.85% Cu (10.6 g/t AuEq) over a TW of 16.57m; hole ML20-458D with 5.9 g/t Au, 8.7 g/t Ag, and 0.7% Cu (7.11 g/t AuEq) over a TW of 25.47m; and hole ML20-492DA with 25.46 g/t Au, 36 g/t Ag, and 0.83% Cu (27.21 g/t AuEq) over a TW of 22.95m. The infill drilling conducted to date has increased drill density in specific areas of the resource model to an approximate 30-metre spacing (from an approximate 100-metre spacing). The final, upgraded Mineral resource estimate for Media Luna, due for completion in Q1 2022, is expected to provide for a more robust mine plan in the upcoming Feasibility Study.
  • Zacatecas Silver Corp., reported results from the re-sampling of drill core from its Panuco property in Zacatecas being undertake with regards to the resource confirmation process.  A 57 kg sample composite of historic Panuco drill core from one of the higher grade shoots has assayed higher than the grade described in the historic resource, with the sample returning assays of 198 g/t AgEq. (146 g/t Ag, 0.30 g/t Au, 0.13% Zn, and 0.42 % Pb). In addition, a 100Kg composite sample of drill core used in the Panuco resource estimation was sent to the lab for benchmark metallurgical work. Panuco has an historic inferred mineral resource of 19,472,901 Oz AgEq (cut-off 100 g/t AgEq.) from 3,954,729 tonnes at 153 g/t AgEq (136 g/t Ag, 0.14 g/t Au, 0.012% Pb, 0.11% Zn).

ON DEALS AND CORPORATE ISSUES

  • Agnico Eagle Mines Limited announced the appointment of a new member to its Board of Directors (Pinos Altos mine, Chihuahua).
  • Chesapeake Gold Corp., announced the resignation of its Director (Metates property, Durango).
  • GoGold Resources Inc., presented results from its annual general meeting of shareholders (Los Ricos project, Jalisco).
  • Inomin Mines Inc., completed the 100% acquisition of the La Gitana and the Peña Blanca properties in Oaxaca from Gunpoint Exploration Ltd, by exchanging 1M common shares of the Company, $25K cash, and the grant of a 1.5% NSR payable to Gunpoint on the Pena Blanca property (with an option for Inomin to purchase 0.5% of the NSR at any time for $1M). La Gitana is subject to an existing 3% NSR to a third-party which will be assumed by Inomin.
  • Orogen Royalties Inc., appointed a new member to its Board of Directors (El Ermitaño, Sonora).
  • Telson Mining Corporation engaged RB Milestone Group LLC for twelve months to provide corporate communications advisory, non-deal roadshow advisory, market intelligence advisory, and business referrals to the management team of the company (Tahuehueto project, Durango).

ON SOCIAL RESPONSIBILITY

  • AIMMGM Sonora District Ladies Committee sent 790 kilos of plastic caps to the association “Banco de Tapitas”, so that the material is recycled and the proceeds are donated to minors suffering from cancer. Banco de Tapitas A.C. operates throughout Mexico on a non-profit basis, collecting plastic caps to recycle them and generate resources to fund treatments, transfers, medicine and comprehensive support mainly for children with cancer, although it extends its help to people up to 21 years of age.
  • Peñasquito mine (Newmont) awarded scholarships to students of the Ignacio López Rayón elementary school. One of the most important achievements for this school, which has 23 students in the Regular Education Support Unit (three of them with a motor disability), is the construction of two functional ramps for those with this type of disability. One was installed at the entrance of the school and one more within the facilities, so that these students can move freely in their place of study and have autonomy in this space.

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

On the picture above, an outcropping Orogenic Au vein in a project in Sonora, Mexico.  Photo by Miguel A Heredia.

The Mining and Exploration News in Mexico; Highlights on the Third Week of March, 2021

By Jorge Cirett

During the 11h week of the year (March 15th to March 21st, 2021), at least 34 press releases were announced by companies working in Mexico. To note, eight companies posted exploration advances on their properties, four presented quarterly results, five posted on financing or share options (including C$12 M, $10.3 M, C$14.1 M and C$80.4M), eight more on project development and five on corporate issues. ON MEXICO ISSUES, 25 Mining projects in Mexico are in line for 2028. At PDAC, a minister from Canada asked for a stable and predictable business environment in Mexico. The president of Mexico, Andres Manuel Lopez Obrador, threatened mining companies with voiding their concessions if they break the law. ON EXPLORATION, in Baja California, One World Lithium announced the incoming drilling at its Salar del Diablo project. In Sonora, Kootenay Silver informed of excellent grades in trenching at its Maria Elena project; Tocvan Ventures updated on exploration at Pilar; Prismo Metals filed a technical report for Los Pavitos project. In Durango, Mithril Resources informed on a high-grade gold intercept at Copalquin. In Guerrero, Pantera Silver commenced exploration in Nuevo Taxco. In Zacatecas, Zacatecas Silver is preparing a resource estimate on the Panuco deposit.  ON MINING, Comet Resources Excellon Resources, Starcore International and Sierra Metals released quarterly and/or full year 2020 reports. Activities at McEwen’s El Gallo mine in Sinaloa, which is in residual leaching, were suspended by an illegal blockade. ON FINANCING, Empress Royalty, Southern Silver, Almaden Minerals, Santacruz Silver Mining and Premier Gold released news on financing. ON RESOURCES AND DEVELOPMENT, Almaden Minerals is resuming exploration at the Ixtaca property in Puebla. Discovery Metals released drilling results from Cordero in Chihuahua. Chesapeake Gold received approval for a bulk drilling program at Metates, Durango. GoGold Resources released drilling results from Los Ricos North in Jalisco. Southern Silver is doubling the size of its drilling program at Cerro Las Minitas in Durango. Consolidated Zinc released the updated mineral resource for the Plomosas mine in Chihuahua. Prime Mining released drilling results for Los Reyes in Sinaloa. Azucar Minerals released results from drilling at El Cobre, Veracruz. ON DEALS AND CORPORATE ISSUES, Radius Gold optioned the Maricela property in Sonora. Sailfish is to prepare an updated mineral resource for Gavilanes in Durango. VanGold Mining signed the definitive agreement with Endeavour Silver for the acquiring the El Cubo mine in Guanajuato. Tarachi Gold completed the acquisition of El Magistral tailings project. Prospero Silver is changing name to Keon Capital. ON SOCIAL RESPONSIBILITY, Grupo Mexico and Fresnillo PLC informed on actions related to social betterment of communities near its operations.

ON MEXICO ISSUES

  • 25 Mining projects in Mexico are in line for 2028 with a total of US$7.8 B (US$7,800 M in Mexican notation). El Arco in Baja California (US$2,900 M), Media Luna in Guerrero (US$496 M), Expansion Herradura (US$490 M), Orysivo in Chihuahua (US$465 M), Juanicipio in Zacatecas (US$440 M) and Sonora Lithium (US$420 M) are among the largest of these.   
  • At the virtual PDAC (Prospectors and Developers Association of Canada) 2021 conference Mary Ng, Minister of Small Business, Export Promotion and International Trade for Canada and Tatiana Clouthier, head of the Economy Secretariat in Mexico met and spoke about the strengthening of commercial ties between the two countries, particularly in the energy and mining sectors. Minister Ng stressed the need to keep a stable and predictable business environment for Canadian companies working in Mexico, especially in mining, and expressed its worries for the recently approved energy law and its possible negative impact.
  • In his press conference the president highlighted the cases of Americas Gold and Silver, with his view that it is trying to evade the law on unionized work, and that of First Majestic which he accused of trying to evade taxes (as in other industries, the president disregards any effect on investment and employment by his rigid stance). He suggested the Canadian government should help make the companies comply as in Canada.

ON EXPLORATION

  • Pantera Silver Corp. has mobilized its field personnel to the Nuevo Taxco Silver project in Guerrero. The 1,100 hectares project displays 21 veins 150-350 meters in length within a 135 hectares portion of the property. Of 395 historical samples, 119 grade over 100 gpt Ag, including 18 between 500-900 gpt Ag and three samples over 1,000 gpt Ag. An initial 1,600 meter program is to test the 21 veins area.
  • One World Lithium Inc. is to start phase three drilling on April 15, 2021 at is Salar del Diablo project in Baja California. “If the results of DDH-3 warrant, the DDH-4 will be drilled in the same area…. DDH-3 (diamond drill hole) is located approximately 50 kilometers to the south of DDH-2” completed on the previous campaign.
  • Zacatecas Silver Corp. is to prepare a current resource estimate for the Panuco silver deposit at the Zacatecas Silver project in Zacatecas. The historic inferred mineral resource hosts 3.95 M tonnes @ 136 gpt Ag, 0.14 gpt Au, 0.12% Pb, 0.11% Zn (153.2 gpt AgEq), containing 19.5 M Oz Ag. Re-assaying of 15% of the core intervals used in the historic resource calculation is being performed to assist in the new resource estimation, as well as bench scale metallurgical test of mineralized core material.    
  • Kootenay Silver Inc. informed on the discovery of significant gold at its Maria Elena project in Sonora. Highlighted results from sampling in 8 trenches comprise 33 m @ 2.67 gpt Au (including  9 m @ 5.29 gpt Au, 1 m @ 23.7 gpt Au) in trench 6; 24 m @ 1.81 gpt Au (including 8 m @ 3.98 gpt Au, 1 m @ 17.25 gpt Au) in trench 4; 9 m @ 2.01 gpt Au (including 1 m @ 15.45 gpt Au) in trench 2. “Gold mineralization is hosted by stock works of quartz and quartz carbonate veins formed by conjugate sets of veins …. Numerous conjugate vein sets and associated stock work zones occur within a 1.5 by 1.5-kilometer area hosted within a diorite intrusion and are the source of the placer gold historically mined on the property”.
  • Canasil Resources Inc. informed on drilling at La Esperanza project in Zacatecas. Three holes in the La Esperanza  vein have already intersected the vein as projected, while a fourth is in progress. While the vein outcrops for 150 m, it has now been intersected for 525 m along strike and 350 m to depth.
  • Tocvan Ventures Corp. updated on exploration at its Pilar project in Sonora. On the Main Zone Extension, a 350 m section presents “altered vein zones” 5 to 20 m in width, strong oxidation and 800 m of anomalous soil samples with up to 106 and 911 ppb Au, and rock grab samples with 9.3 gpt Au. At the 4-Trench there is a 600 m trend that presents veins for 400 m of strike untested by drilling, rock grab samples with up to 24 gpt Au and historical artisanal workings for 350 m of strike.
  • Mithril Resources Ltd. informed on the drilling at El Refugio target in the Copalquin project in Durango. An exceptional core length interval of 4.17 m @ 62.0 gpt Au, 445 gpt Ag was drilled, and is characterized by abundant black sulfide and kaolinite, as well as by the presence of visible gold.
  • Prismo Metals Inc. filed a NI 43-101 technical report for its Los Pavitos project in Sonora. The 5,289-hectare concession is west of the Alamos district, displaying epithermal low sulfidation veins and orogenic gold shears. Highlighted rock sample results include 0.30 m @ 40.8 gpt Au, 0.65 m @ 4.86 gpt Au, 0.20 m @ 1.57 gpt Au, 2.5 m @ 1.5 gpt Au, 2.5 m @ 2.41 gpt Au, grab samples of up to greater than 10.0 gpt Au and dump samples with up to 5.26 gpt Au.

ON MINING

  • Comet Resources Ltd. presented its second half 2020 financial report. In the period the company spent US$2.35 M in mineral exploration and administration, raised US$3 M, acquired the Santa Teresa project in Baja California with 88.6 K Oz Au JORC compliant inferred resources.
  • McEwen Mining Inc. informed that activities at the El Gallo project in Sinaloa (currently on residual leaching) have been suspended as results of an illegal blockade of the main access to the property by members of nearby communities. “El Gallo has operated harmoniously with the local communities since mining started in 2012, having demonstrated a long-standing track record of supporting local communities. In this context, the current situation is surprising. The site remains minimally staffed to maintain appropriate safety and security, and the environmental systems. McEwen Mining is negotiating for a peaceful resolution to the issues”.
  • Excellon Resources Inc. reported financial results for the Q4 and full year 2020. During the quarter silver production at the Platosa mine in Durango increased to 355.6 K Oz, the strongest production since 2014, at an all-sustaining cost of $21.19 per Oz Ag. For the year, the revenue of $26.2 M was impacted by the temporary suspension related to the Covid pandemic. On the second half of the year 43.3 K tonnes were mined, producing 1.08 M Oz Ag.
  • Starcore International Mines Ltd. reported results for the quarter ended in January 2021. At the San Martin mine in Queretaro, 57.3 K tonnes were milled @ 1.66 gpt Au, 23 gpt Ag, recovering 88.8% Au, 57.1% Ag, to produce 2.7 K Oz Au, 23.8 K Oz Ag or 3,063 Oz AuEq at cash cost US$1,042 per Oz AuEq and an AISC of US$1,361 per Oz AuEq.
  • Mexus Gold US. Informed it has received the necessary explosives permit to mine the high grade Mexus II and Julio vein structures at its Santa Elena mine in Sonora.
  • Sierra Metals Inc. reported financial results for 2020. At Bolivar in Chihuahua, cash cost per CuEq Lb was $1.35 and AISC per CuEqLb was $1.88. At Cusi in Chihuahua, cash cost per AgEqOz was $15.70 and AISC per AgEqOz was $28.18. The company hold cash and cash equivalents of $71.5 M at the end of the period.

ON FINANCING

  • Empress Royalty Corp. entered into an agreement with Red Cloud Securities Inc. and Canaccord Genuity Corp. and a syndicate of underwriters that shall purchase shares of the company for gross proceeds of C$12 M. (Pinos, Zacatecas).
  • Endeavour Silver Corp. announced its common shares will be added to the S&P/TSX Composite and the NYSE Arca Gold Miners Index (Terronera, Jalisco).
  • Southern Silver Exploration Corp. raised $14.2 million in Summer of 2020. “Since the closing of the equity raise and the working interest purchase in September 2020, the Company has received a total of $2,428,228 from shareholder exercises of share purchase warrants, inclusive of the recent 6,000,000 share purchase warrant exercise by Electrum Global Holdings LP for proceeds of $480,000. Additionally, the Company has received $477,470 from the exercise of incentive stock options and finders’ warrants”.
  • Almaden Minerals Ltd. announced a US$10.3 M registered direct offering (Ixtaca, Puebla).
  • Santacruz Silver Mining Ltd. has increased the size of its previously announced non-brokered private placement offering, intending to raise now up to CDN$14.1 M (Zimapan, Hidalgo).
  • Premier Gold Mines Ltd. announced its wholly-owned subsidiary i-80 Gold Corp. closed its previously publicized private placement for aggregate gross proceeds of C80.4 M. “Premier remains focused on creating i-80 as a Nevada-focused mining company…” (Mercedes, Sonora).
  • Minera Alamos Inc. informed the board of directors approved the issuance of 7.25 M options to management, directors, employees and consultants, tied to production milestones (Santana, Sonora).
  • First Majestic Silver Corp. received regulatory consent to extend its share repurchase program to up to 10 M shares or 4.5% of the outstanding shares of the company (San Dimas, Durango).

ON RESOURCES AND DEVELOPMENT

  • Almaden Minerals Ltd. has resumed exploration in the area of the Ixtaca project in Puebla. Initial work is to focus in identifying drill targets in the SE Alteration Zone, 1 km SE from the Ixtaca deposit. Argillic alteration with hyperspectral signatures for kaolinite, alunite and buddingtonite is present, along with several areas of veining with anomalous pathfinder elements.
  • Discovery Metals Corp. announced results from 14 diamond drill holes targeting high-grade veins at its Cordero project in Chihuahua. Highlighted intercepts comprise 1.3 m @ 1,581 gpt Ag, 0.15 gpt Au, 9.9% Pb, 5.4% Zn; 8.9 m @ 267 gpt Ag, 0.91 gpt Au, 0.9% Pb, 0.8% Zn (including 1.0 m @ 1,280 gpt Ag, 4.24 gpt Au, 1.6% Pb, 3.4% Zn); 1.3 m @ 1,607 gpt Ag, 2.06 gpt Au, 5.2% Pb, 8.0% Zn; 10.0 m @ 92 gpt Ag, 0.09 gpt Au, 2.4% Pb, 3.4% Zn in the Josefina vein; 2.9 m @ 992 gpt Ag, 0.73 gpt Au, 12.9% Pb, 2.4% Zn in the South corridor and 4.0m @ 377 gpt Ag, 0.28 gpt Au, 7.1% Pb, 2.7% Zn (including 1.4 m @ 552 gpt Ag, 0.33 gpt Au, 11.0% Pb, 3.4% Zn); 1.2 m @ 241 gpt Ag, 0.52 gpt Au, 4.6% Pb, 10.4% Zn; 2.8 m @ 207 gpt Ag, 0.15 gpt Au, 3.7% Pb, 7.7% Zn on the Todos Santos vein. “The Company has completed 58,600 m (148 holes) as part of its expanded 65,000 m Phase 1 drill program. Assays from 24 holes are pending”.
  • Chesapeake Gold Corp. has received the final permits to commence a bulk drilling program at the Metates project in Durango. The company plans to drill 2,500 meters to recover 10 tonnes of large diameter (PQ) core for metallurgical testing to support a potential sulfide heap leach mine operation.
  • GoGold Resources Inc. released results from four more drill holes on the Casados area of the Los Ricos North project in Jalisco. Highlighted core length results comprise 10.3 m @ 0.43 gpt Au, 116 gpt Ag; 21.4 m @ 0.44 gpt Au, 98 gpt Ag; 49.1 m @ 0.54 gpt Au, 250 gpt Ag; 13.3 m @ 0.67 gpt Au, 204 gpt Ag; 5.1 m @ 1.94 gpt Au, 1,270 gpt Ag (including 0.8 m @ 10.31 gpt Au, 6,842 gpt Ag; 52.0 m @ 0.47 gpt Au, 127 gpt Ag; 8.3 m @ 0.94 gpt Au, 279 gpt Ag; 23.6 m @ 0.58 gpt Au, 156 gpt Ag (including 10.9 m @ 1.05 gpt Au, 307 gpt Ag); 33.6 m @ 0.23 gpt Au, 95 gpt Ag. The Casados vein dips 45 degrees, is hosted in andesitic tuffs and is exposed for 400 m in the surface.
  • Southern Silver Exploration Corp. is doubling the size of the current drilling program from 10,000 m to 20,000 m on the Cerro Las Minitas project in Durango. The current program has completed 28 core holes totaling 12,040 m since September 2020. “Drilling will continue with two drills targeting the east side of the Cerro where to date three near-surface sulphide lenses with Bonanza-grades of silver have been identified”. Assays from 11 drill holes are pending.
  • Consolidated Zinc Ltd. announced its updated mineral resource for the Plomosas project in Chihuahua. The resource estimate is JORC compliant and contains indicated mineral resources of 152 K tonnes @ 13.3% Zn, 6.0% Pb, 33.6 gpt Ag containing 20.2 K tonnes Zn, 9.1 K tonnes Pb, 164.6 K Oz Ag and inferred resources of 788 K tonnes @ 13.0% Zn, 2.9% Pb, 17.2 gpt Ag containing 102.1 K tonnes Zn, 22.7 K tonnes Pb, 435.5 K Oz Ag.
  • Prime Mining Corp. reported initial results from its 15,000 m drilling program at Los Reyes, in Sinaloa. The first hole at Guadalupe East intersected 20.1 m @ 3.25 gpt Au, 380 gpt Ag (including 6.5 m @ 6.51 gpt Au, 587 gpt Ag), this intercept is 150 m below any previous drilling; 3.8 m @ 3.69 gpt Au, 305 gpt Ag (including 2.1 m @ 6.18 gpt Au, 507 gpt Ag). Chip sampling of adularia bearing banded quartz veins in a new area returned several mineralized intervals, including 3 m @ 29.8 gpt Au, 1,132 gpt Ag.
  • Azucar Minerals Ltd. released results from drilling at the Porvenir zone at the El Cobre project in Veracruz. Some of the highlighted results comprise 77.65 m @ 0.26 gpt Au, 0.16% Cu (including 43.55 m @ 0.37 gpt Au, 0.21% Cu and 25.55 m @ 0.45 gpt Au, 0.23% Cu) in one hole and 16.70 m @ 0.10 gpt Au, 0.09% Cu; 37.00 m @ 0.12 gpt Au, 0.08% Cu.

ON DEALS AND CORPORATE ISSUES

  • Radius Gold Inc. has optioned the Maricela group of properties (155 ha) in Sonora. Radius can earn 100% interest in the property by paying US$1.25 M over three years. A total of US$30 K has been paid to date. The owner retains a 1% NSR which can be bought back for US$1 M. Mineralization is of low sulfidation epithermal style with 1-3 m massive quartz veins and stockworks over 10 meters in width hosted in andesitic volcanic rocks and felsic dykes emplaced sub-parallel to mineralized structures.
  • Sailfish Royalty Corp. announced on early February “that Mine Development Associates (“MDA”), a division of RESPEC, out of Reno, Nevada, was hired to prepare an updated mineral resource estimate on Gavilanes. The updated mineral resource estimate is a key milestone for the planned spinout of Gavilanes and the Company is pleased to report that MDA is expecting to complete their work in early Q2 2021”.
  • VanGold Mining Corp. signed a definitive purchase agreement with Endeavour Silver Corp. to acquire El Cubo mine and mill complex located 8 km from its El Pinguico project in Guanajuato. “According to the Company’s recently announced PEA from Behre Dolbear and Company (USA) Inc., (“Behre”) the Combined Project contains total indicated resources of 718,655 tonnes grading 160 gpt Ag and 1.90 gpt Au, or 306 gpt AgEq, which equates to 7.2 M oz AgEq; and total inferred resources of 1,453,000 tonnes grading 214 gpt Ag and 2.78 gpt Au, or 435 gpt AgEq, which equates to 20.4 M oz AgEq”. VanGold will pay $15 M as follows: $500 K (paid), $7 M on closing, anticipated to by the end of March 2021, $5 M on VanGold shares on closing and $2.5 M in promissory notes due 12 months from closing.
  • Tarachi Gold Corp. completed the acquisition from Manto Resources S.A. de C.V. of the Magistral mill and tailings project in Durango. A PEA is to be conducted to determine if modifications are needed on the mill’s flowsheet prior to commissioning. The tailings basin is to be tested with an auger drill rig, with six confirmation holes and eleven in-fill holes. Underground diamond core drilling has been progressing on the Jabali concession at its Tarachi project in Sonora.
  • Prospero Silver Corp. board of directors has approved the name change of the company to Keon Capital Inc., subject to the acceptance of the TSX Venture Exchange (Bermudez, Chihuahua).

ON SOCIAL RESPONSIBILITY

  • Fundación Grupo México and Granjas Carroll delivered fruit bearing trees to producers in Puebla.
  • Minera San Julian donated medical equipment in Chihuahua.

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

On the image below:  Core from Azure Mineral’s Oposura project in Sonora. Picture by Jorge Cirett.