Galena-sphalerite-Ag sulfosalts in a quartz vein
By Miguel A Heredia
During the 38th week of the year (September 18th to September 24th, 2023), at least 18 press releases were announced by companies working in Mexico, and 4 news published by the media, with ten disclosing deals and corporate issues, three commenting on Mexican issues, three announcing financing issues, two reporting resources and development of their properties, two informing on exploration results, and two discussing social issues. ON MEXICO ISSUES, According to El Financiero, there has been a 69% increase in the number of suspended projects during the López Obrador administration. According to information from the US Geological Survey, there are 82 lithium deposits in 18 states of the Republic, which can represent 1.7 million tons. ON EXPLORATION, In Chihuahua, Southern Empire received permitting from the Mexico´s Ministry of Environment and Natural Resources (SEMARNAT) for 30 drill hole sites at its Centauro project. In Zacatecas, Radius provided an update on drilling at its Tropico project. ON MINING, no relevant news. ON FINANCING, Equinox announced and completed a bought deal offering of convertible senior notes (Mina Los Filos, Guerrero). Excellon announced debenture restructuring to reduce the outstanding principal amount to CAD $7.5M (La Negra Mine, Queretaro). ON RESOURCES AND DEVELOPMENT, Golden Tag announced the commencement of a 7,000m drilling campaign at its La Parrilla Mine Complex in Durango. Tocvan provided an update on the acquisition of Pilar project in Sonora and outlined target areas for the next phase of drilling. Silver Valley provided a corporate update on its MexiCan lithium-potassium projects located in Zacatecas-San Luis Potosi. ON DEALS AND CORPORATE ISSUES, Luca Mining announced the appointment of its Director of Corporate Development (Tahuehueto project, Durango). Santacruz reported fatality at its Zimapan Mine, Hidalgo. GR Silver reported results from its annual general meeting of shareholders (Plomosas project, Sinaloa). Sierra Metals placed Cusi Mine in Chihuahua on care and maintenance and initiated sale process. Radius announced that it proposes to issue 500K common shares of the company to Bruce Smith (Tropico project, Zacatecas). Angel Wing announced the consolidation of its common shares (La Reyna project, Nayarit). Bear Creek announced results from its special meeting of shareholders (Mercedes Mine, Sonora). Colibri announced the retirement of its President and CEO, and its replacement (Evelyn project, Sonora). Orex announced a consolidation of its issued and outstanding common shares at a ratio of ten pre-consolidation shares to one post-consolidation share (Coneto project, Sonora). Pan American announced that it will host a conference call to discuss the company´s environmental, social, and governance efforts and development (La Colorada, Zacatecas). Silver Viper announced that it will present a live virtual corporate update hosted by Red Cloud Financial Services on September 28th, 2023 at 2:00 PM ET (La Virginia project, Sonora). ON SOCIAL RESPONSIBILITY, MAG Silver published its second annual sustainability report (Juanicipio, Zacatecas). Ternium completed the restoration of the Cerro Náhuatl Mine and Jala Station Closure Plan in Coquimatlán, Colima, which covers a period from 2012 to 2022 in which reforestation works and programs were implemented.
ON MEXICO ISSUE
- According to El Financiero, the mining sector has experienced a series of obstacles set by the current administration. The number of suspended projects stood at 439 in 2018, while the current figure is 837, representing a 69% increase in the number of suspended projects during the López Obrador administration. Likewise, the Fraser Institute of Canada placed Mexico in 37th place out of 83 countries evaluated, a drop of three places compared to 2021 and 17 positions compared to 2010. The sector is worried that the USD $77.2M budget assigned to Mexican Geological Survey (SGM) for 2024 is 95.47% below the USD $1.7 B private companies invested just in exploration. “With this lack of budget for exploration, they are condemning the country and the mining sector, because mining will be halted for another six years. If the modifications to the Mining Law remain as they are, we will witness Mexico’s mining sector entering a clear decline,” said Alfredo Phillips, Vice President, Argonaut Gold, in an interview with El Financiero. In an interview with Mexico Business News (MBN), Ramón Luna, Director General of Servicios y Proyectos Mineros de Mexico (SPM), acknowledged that SGM has talented geologists and manages the most comprehensive database in Mexico. However, the public body does not match the infrastructure of a private company. “(The reform) would either force the more than 100 exploration companies in the country to work with the SGM or make the latter the only operator. This is not feasible because it lacks the necessary infrastructure,” he added. Similarly, Raúl García, President of College of Mining Engineers, Metallurgists and Geologists of Mexico (CIMMGM), said that we could see the first impacts of lacking exploration by 2025 and a drop in production within the next five years, if SGM does not maintain the current levels of exploration. According to data from the Secretariat of Economy (SE), in 1Q23, the total foreign direct Investment (FDI) in the mining sector amounted to USD $419M. In contrast, during the same period in 2013, this figure reached USD $2.036 B, reflecting a decline of 79.4%. During Enrique Peña Nieto’s initial five-year term, from 2012 to 2017, the country received mining FDI totaling USD $2.8 B and USD $1.9 B, respectively, representing a decrease of 32.1%. Meanwhile, during the first five years of López Obrador’s administration, covering the period from 2018 to 2023, FDI amounted to USD $1.9 B and USD $419M, marking a significant 78% decrease. However, it is important to note that data for 2023 is not fully available, which means that the percentages provided could vary.
- According to information from the US Geological Survey, there are 82 lithium deposits in 18 states of the Republic, which can represent 1.7 million tons. A few days ago, Héctor Usla, Economist and Reporter of the El Financiero Newspaper, reported that the 2024 Expenditure Law project plans to allocate MXP $9.77M to Litio para México (LitioMx), the entity created in August 2022, for the exploration, exploitation, benefit and use of lithium found in national territory. This is an amount that allows the administrative operation of the decentralized organization, but that seems insufficient to reliably establish the total amount of probable lithium reserves and initiate exploration and production in the most promising deposits. (Note of the writer.- Are you serious?…Obviously, it would be vastly insufficient to have a budget like that reported above to carry out exploration, exploitation, etc.).
- Southern Empire Resources Corp., received permitting from the Mexico´s Ministry of Environment and Natural Resources (SEMARNAT) for 30 drill hole sites at its Centauro project in Chihuahua. “The Centauro Gold Project exhibits significant potential to host “Carlin-style” and/or epithermal precious metal mineralization based on extensive brecciation, silicification and argillization of the Tertiary-age Ahuichila Formation conglomerate, a strongly coincident gold (“Au”), arsenic (“As”), antimony (“Sb”), mercury (“Hg”), thallium, silver, barium soil geochemical signature associated with a silicified mesa “cap” covering 2.5 km along the strike of the main zone, outcrops containing arsenopyrite, realgar, orpiment and stibnite, and low to non- anomalous base metal values”.
- Radius Gold Inc., provided an update on drilling at its Tropico project in Zacatecas. The initial hole TDD-001 plan for 300m to intersect the Tropico breccia pipe encountered difficult ground conditions and was abandoned at 56m. “The hole from 19m to 56m is intensely altered with clay, silicification, variable zones of hydrothermal breccias and repeated sets of banded silica veins with fine sulphides and stockwork veining. Banded veining had not previously been seen on the property”. “The drill rig has been stepped back from the target an additional 25m and a new hole drilled deeper under hole TDD-001, this time using large diameter PQ sized core and casing which is expected to alleviate the drilling difficulties”.
- No relevant news.
- Equinox Gold Corp., announced that it has entered into an agreement to buy, on a bought deal basis, 4.75% unsecured convertible senior notes due 2028 in an aggregate principal amount of $150M. The company has granted the initial purchasers up to an additional $22.5M aggregate principal amount of notes. The notes will be issued at par value. Later on, the company announced that it had closed its previously announced bought deal offering of $172.5M aggregate principal amount of 4.75% unsecured convertible senior notes due 2028, which includes exercise of the full amount of the option to purchase an additional $22.5M aggregate principal amount of notes Net proceeds will be used for repayment of debt and for general corporate purposes (Mina Los Filos, Guerrero).
- Excellon Resources Inc., announced debenture restructuring to reduce the outstanding principal amount to CAD $7.5M representing a reduction of CAD $10.4M (58% reduction), and to amend the terms of the remaining debentures to, among other things, further extend the maturity date to August 31, 2026. In exchange for CAD $10.4M aggregate principal amount of the debentures, Excellon to pay CAD $3.5M in equity, 25% interest in Silver City Project, plus additional non-dilutive contingency and royalty payments (La Negra Mine, Queretaro).
ON RESOURCES AND DEVELOPMENT
- Golden Tag Resources Ltd., announced the commencement of a 7,000m drilling campaign at its La Parrilla Mine Complex in Durango. The 7,000m phase 1 drilling program will focus on infill and step-out drilling in proximity to underground mining infrastructure and existing development in three key areas: a) Rosarios and Cuerpo 340 Veins (3,000 m of drilling to test the east, west and central down-dip extensions; b) Quebradillas Underground (3,000 m of drilling to test the strike and down-dip extensions of three key zones including Cuerpo 460, Norte-Sur, and San Nicolas; and c) San Marcos (1,000 m of drilling to test the extension of San Marcos and Cuerpo 1100 at depth.
- Tocvan Ventures Corp., provided an update on the acquisition of the Pilar project in Sonora and outlined target areas for the next phase of drilling. The company has exercised notice to Colibri Resources Corp., to purchase the remaining 49%. It also is completing a due diligence expected to finalize in coming weeks to acquire over 21 square-kilometers of land surrounding the Pilar, which contain recent placer activity, historic workings, and prospective geology, indicative that the area is highly prospective for gold and silver. “Tocvan plans to restart field operations at the close of the expansion acquisition to advance new target areas already identified quickly towards drill targeting. Drilling at Pilar and within the new expansion area is planned to total 2,000-meters before year end”.
- Silver Valley Metals provided a corporate update on its MexiCan lithium-potassium projects located in Zacatecas-San Luis Potosi. Highlights of this project include that significant grades of lithium, potassium sulphate, and boron are located on surface in unconsolidated sediments; the brine potential has not been tested to date; deep basin large aquifer brine potential defined by regional geophysics surveys, remains to be tested; he inferred resource has been tested from surface to an average 5 metres depth; the company anticipates the sediment basin could range from 40m to greater than 100m deep, so the prospect of expanding the sediment resource at depth is substantial; and 12.3M tonnes of Potassium Sulphate and 243K tonnes of Lithium Carbonate Equivalent defined thus far. The company declared that discussions are active and advancing with LitioMX and near-term plans are in place to come together to potentially finalize a partnership agreement.
ON DEALS AND CORPORATE ISSUES
- Luca Mining Corp., announced the appointment of its Director of Corporate Development. The company also granted incentive stock options to its employees and consultants to purchase an aggregate 225K share in the capital stock of the company (Tahuehueto project, Durango).
- Santacruz Silver Mining Ltd., reported that an employee was fatality injured at its Zimapan Mine, Hidalgo. The fatality was the result of rockfall from a stope face.
- GR Silver Mining Ltd., reported results from its annual general meeting of shareholders. Incumbent director Laura Diaz chose not to stand for re-election and was not a nominee (Plomosas project, Sinaloa).
- Sierra Metals Inc., placed Cusi Mine in Chihuahua on care and maintenance and initiated a process to sell the mine. Ernesto Balarezo Valdez, Sierra Metals’ CEO, stated that “Sierra Metals is transitioning to become a copper-focused mining company, and the planned divestiture of Cusi will allow us to focus on our two key mines, Yauricocha in Peru and Bolivar in Mexico, where we have significant potential to continue growing our copper production”.
- Radius Gold Inc., announced that it proposes, subject to TSX Venture Exchange approval, to issue 500K common shares of the company to Bruce Smith. The common shares will be issued at a deemed price of $0.24 per share, for a total deemed value of $120K (good for you Bruce!) (Tropico project, Zacatecas).
- Angel Wing Metals Inc., announced the consolidation of its common shares on the basis of one post- consolidation common share for every two pre-consolidation shares issued and outstanding as of the close of business on September 20, 2023. (La Reyna project, Nayarit).
- Bear Creek Mining Corporation announced results from its special meeting of shareholders (Mercedes Mine, Sonora).
- Colibri Resource Corporation announced the retirement of its President and CEO, and its replacement (Evelyn project, Sonora).
- Orex Minerals Inc., announced a consolidation of its issued and outstanding common shares at a ratio of ten pre-consolidation shares to one post-consolidation share. The reasons for the consolidation are to increase the company’s flexibility and competitiveness in the marketplace and to attract new equity investment in the company (Coneto project, Sonora).
- Pan American Silver Corp., announced that it will host a conference call to discuss the company ´s environmental, social, and governance efforts, and development on October 19, 2023 at 11:00 am ET (8:00 am PT) (La Colorada, Zacatecas).
- Silver Viper Minerals Corp., announced that it will present a live virtual corporate update hosted by Red Cloud Financial Services on September 28th, 2023 at 2:00 PM ET (La Virginia project, Sonora).
ON SOCIAL RESPONSIBILITY
- MAG Silver Corp., published its second annual sustainability report. , which provides a comprehensive overview of the company’s environmental, social and governance (“ESG”) commitments, practices, and performance for the 2022 year. Highlights of the 2022 sustainability report include zero fatalities at the Juanicipio project, Zacatecas or at MAG´s exploration projects; a lost time injury frequency rate of 1.92; over 62,000 hours dedicated to safety training; zero significant environmental incidents at the Juanicipio and other projects; 66% of MAG Silver´s workforce is hired from local communities; over 13 community engagement initiatives across 4 different project streams at the Juanicipio project: health, education, capacity buildings, and microenterprise projects; 38% of Board directors are female, surpassing the 30% target established in MAG´s Diversity, Equity and Inclusion Policy; and Code of Conduct and Social Responsibility Policy refreshed and updated to specifically articulate the importance of engaging with Indigenous communities through meaningful dialogue, cooperation, and deepening of the shared-value approach to local development activities to promote sustainable and lasting economic and social benefits.
- Ternium completed the restoration of the Cerro Náhuatl Mine and Jala Station Closure Plan in Coquimatlán, Colima, which covers a period from 2012 to 2022 in which reforestation works and programs were implemented. With this project, the forest area was increased by 88 hectares and the area was repopulated with 180 species of native fauna. It is a component of the company’s commitment to sustainability in the communities where it operates, according to a statement.
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, galena, sphalerite, and silver sulfosalts in a quartz vein from an intermediate sulphidation epithermal vein system in Sonora, Mexico Photo by Miguel A Heredia.
By Jorge Cirett
During the 35th week of the year (August 27th to September 3rd, 2023), 21 companies working in Mexico posted news releases. Five companies reported on quarterly or half year 2023 results. Five companies informed on the opening or closing of private placements, one on the payment of dividends and one more on the extension of a credit facility. One company announced results of a PEA on its property and one other is working to process a tailings polymetallic resource. A company reported high-grade drilling results from its property and one other updated on exploration activities. One company informed on its intention to acquire a porphyry copper project in Sonora, while one other updated on projects in several countries and its plans for Mexico. One royalty company informed on the indirect acquisition of an NSR from a mine in Mexico. ON MEXICO ISSUES, Xótchil Gálvez, pointed that the Mining Fund should return to mining communities. ON EXPLORATION, no relevant news. ON MINING, Impact Silver, Bear Creek Mining and Minera Alamos reported financial results for Q2 2023, and Mundoro reported first half 2023 results. ON FINANCING, Aztec Minerals (C$911.6 K), Colibri Resource, Regency Silver (C$1.5 M), Sonoro Gold (C$259.2 K) and Commander Resources ($ 346 K) informed on the opening or closing of financing rounds. Orla Mining extended its credit facility to up to $200 M and four years. Alamos Gold declared a quarterly dividend. ON RESOURCES AND DEVELOPMENT, Sonoro Gold announced a positive PEA on Cerro Caliche, Sonora. Luca Mining informed on evaluation plans to reprocess tailings at Campo Morado, Guerrero. Bear Creek Mining provided underground drilling results from Mercedes, in Sonora. Discovery Silver submitted the environmental impact assessment (MIA) for Cordero, in Chihuahua. Mammoth Resources provided an update on exploration activities at Tenoriba, in Chihuahua. ON DEALS AND CORPORATE ISSUES, Southern Empire Resources entered into an agreement with Cuprum Mining, upon which Southern can acquire 100% interest in the Suaqui Verde porphyry copper project in Sonora. Excellon Resources provided an update on its projects in different countries, including Mexico. Gold Royalty completed the acquisition of a 1.0% NSR on portions of the Cozamin mine production in Zacatecas. ON SOCIAL RESPONSIBILITY, no relevant news.
ON MEXICO ISSUES
- Xóchitl Gálvez, opposition senator and likely to turn into a strong presidential candidate, points that the Mining Fund should return to mining communities. The fund was created for mining to contribute to the development of the communities where the work is realized, but was funneled into a broader basket to source pensions and scholarships with electoral aims by the current president.
- No Relevant News.
- Impact Silver Corp. announced financial results for the second quarter 2023, reporting revenue of $5.5 M. The average mill feed at Zacualpan, in Estado de Mexico, was 163 gpt Ag, where 35.7 K tonnes were processed to produce 155.7 K Oz Ag. During the quarter Impact closed the acquisition of the Plomosas mine in Chihuahua, where a major rehabilitation program was initiated. The company completed a $9.0 M non-brokered private placement, maintains a cash balance of $13.3 M and no long-term debt.
- Orogen Royalties Inc. reported financial results for the second quarter of 2023, including some figures on its royalties from Mexican operations. The company holds a 2.0% net smelter return (NSR) royalty on the production of First Majestic’s Ermitaño mine in Sonora. Orogen’s share of production on the quarter was $1.18 M consisting on 435 Oz AuEq, resulting from the process of 213.9 K tonnes @ 3.12 gpt Au, 39 gpt Ag, which produced 20,073 Oz Au, 142 K Oz Ag.
- Bear Creek Mining Corp. reported its financial results for Q2 2023. During the period, 121.5 K tonnes were mined at its Mercedes mine in Sonora, 125.1 K tonnes were processed @ 2.42 gpt Au, recovering 94.53% Au to produce 9,212 Oz Au, 39,827 Oz Ag, or 10,132 Oz AuEq at cash cost $1,337 per Oz AuEq and an AISC of $1,646 per Oz AuEq. “The Mercedes mine has been inconsistent in achieving the anticipated gold grades projected in the mine plans and geological models the Company inherited upon its acquisition of Mercedes in April 2022”. Mining costs have declined by 23% in recent months and are expected to continue to reduce in the coming months due to changes in mining methods. Higher grades are to be mined from areas close to current production.
- Minera Alamos Inc. provided an operation update for Q2 2023 and some guidance on its operations on Q3. Strip ratios were maintained below 2:1 waste vs mineralized material during mining operations, with 25% of material averaging 1.06 gpt Au being crushed and 75% of material averaging 0.43 gpt Au being sent directly to the leach pads, for an average grade of 0.59 gpt Au in the leach pads. The company expects that the precipitation levels in 2023 will allow more normal mining and production plans. Overall pad capacity is to triple if constructive communications with SEMARNAT (Environmental regulator) are fruitful. A maiden resource estimate is expected in Q3, covering the primary mineralized zones surrounding the Nicho operations. Alamos had cash and cash equivalents of $8.27 M by the end of the period. Subsequent to quarter’s end, $2.57 M ($33.2 M pesos) of VAT were returned to the company by the Mexican revenue service (SAT).
- Mundoro Capital Inc. reported financial results for the first half of 2023. In H1 2023 the company generated $1.46 M in fees and payments. At the end of the period Mundoro held $8.4 M in cash and cash equivalents (Camargo, Chihuahua).
- Aztec Minerals Corp. closed the first tranche of its non-brokered private placement for gross proceeds of CAD$911.6 K. “Due to investor interest in the private placement, Aztec intends to increase the financing from the original stated amount of up to CAD$1 million to up to CAD$1.2 million” (Cervantes, Sonora).
- Orla Mining Ltd. amended its existing US$150 M credit facility with the Bank of Nova Scotia, Bank of Montreal and Canadian Imperial Bank of Commerce. The facility stays at US$150 M, with the ability to increase to US$200 M, with a 4-year term (increasing it by two years) and an interest rate will be based on the term SOFR rate, plus an applicable margin ranging from 2.50% to 3.75% based on the company’s leverage ratio at the end of each fiscal quarter. “The Amended Credit Facility is payable in full at maturity and removes quarterly mandatory repayments required under the previous term facility” (Camino Rojo Oxides, Zacatecas).
- Colibri Resource Corp. announced an extension to complete its previously announced non-brokered private placement by September 13, 2023. “The Company is offering up to 1,000 units, each unit being comprised of: (i) a US$1,000 principal amount of 10% unsecured convertible debenture (a “Debenture”) with a maturity date (“Maturity Date”) of 2 years from the date of issuance; and (ii) 5,416 common share purchase warrants of the Company …” (Evelyn, Sonora).
- Regency Silver Corp. will be present at the 2023 Precious Metals Summit in Beaver Creek, Colorado. Regency has arranged a non-brokered private placement of up to CAD$1.5 M in gross proceeds (Dios Padre, Sonora).
- Alamos Gold Inc. declared a quarterly dividend of US$0.025 per common share (Mulatos, Sonora).
- Commander Resources Ltd. closed the non-brokered private placement announced on August 3, 2023, for total gross proceeds of $346 K (Pedro, Durango).
- Sonoro Gold Corp. closed the final tranche of its previously announced non-brokered private placement for additional gross proceeds of C$259.2 K, accruing a total of C$2.26 M (Cerro Caliche, Sonora).
ON RESOURCES AND DEVELOPMENT
- Sonoro Gold Corp. announced a positive preliminary economic assessment (PEA) for its Cerro Caliche project in Sonora. The scope is for nine years life of mine (LOM) 33,000 Oz AuEq per year operation to obtain 297,575 Oz AuEq on recoveries of 72% Au, 27% Ag, with a pre-Tax net present value (NPV) of US$71.4 M, a pre-Tax internal rate of return (IRR) of 59% and after-Tax NPV (at 5%) of US$47.7 M with an IRR of 45%. An initial CAPEX cost of US$15.5 M and sustaining capital of US$15.5 M are envisaged, to produce at cash cost US$1,295 per Oz AuEq and an AISC of US$1,395 per Oz AuEq with a payback period of 2.9 years.
- Luca Mining Corp. announced the signing of a memorandum of understanding with EnviroGold Global Ltd. to process the tailings at Luca’s Campo Morado Mine in Guerrero. The scope of the project is to evaluate the reprocessing of 3.29 M tonnes @ 1.32% Zn, 0.3% Cu, 0.49% Pb, 1.57 gpt Au, 94 gpt Ag, and produce a PEA for the project. On a 2021 initial testwork with EnviroGold’s, a gold recovery of 60% was achieved. The aim of the project is to increase this gold recovery rate to levels reached by EnviroGold on the Hellyer project in Australia (also a volcanogenic massive sulfide deposit, as Campo Morado), where it achieved recoveries of 90% Au, 90% Ag by leach, and 91% Cu and 82% Zn reported to a pregnant solution suitable for subsequent recovery.
- Bear Creek Mining Corp. provided results from underground definition and delineation drilling at its Mercedes mine in Sonora. “The Company has focused drilling on the Marianas, Rey de Oro, Diluvio and Lupita deposits, all of which are associated with near-term production; however, the results also hold significant implications for exploration upside”. Highlighted true width intercepts comprise 1.0 m @ 47.90 gpt Au, 39 gpt Ag; 5.2 m @ 62.59 gpt Au, 93 gpt Ag; 4.3 m @ 7.55 gpt Au, 28 gpt Ag; 4.4 m @ 3.53 gpt Au, 10 gpt Ag; 2.1 m @ 18.41 gpt Au, 11 gpt Ag in the Marianas zone, 1.4 m @ 21.00 gpt Au, 11 gpt Ag; 4.9 m @ 3.52 gpt Au, 53 gpt Ag; 0.9 m @ 29.30 gpt Au, 63 gpt Ag; 4.2 m @ 4.56 gpt Au, 71 gpt Ag in the Rey de Oro Zone, 0.8 m @ 22.4 gpt Au, 127 gpt Ag in the Diluvio zone and 3.4 m @ 5.46 gpt Au, 95 gpt Ag in the Lupita zone. Highlighted core-length intervals from the Diluvio zone comprise 6.7 m @ 3.24 gpt Au, 63 gpt Ag; 14.3 m @ 4.11 gpt Au, 54 gpt Ag; 6.1 m @ 3.54 gpt Au, 63 gpt Ag; 6.5 m @ 5.51 gpt Au, 45 gpt Ag; 5.1 m @ 7.11 gpt Au, 78 gpt Ag; 1.5 m @ 9.23 gpt Au, 34 gpt Ag.
- Discovery Silver Corp. submitted for evaluation the environmental impact assessment (Manifestación de Impacto Ambiental, or MIA) for its Cordero project in Chihuahua. “The MIA is one of the principal permits required for the development of Cordero and encapsulates extensive social and environmental work programs completed by the Company’s team in Mexico since 2020 in parallel with multiple reviews by third-party consultants.”
- Mammoth Resources Corp. provided an update on ongoing exploration activities at its Tenoriba property in Chihuahua. The objective is to evaluate how to produce a resource estimation and define the processes through which the precious metals can be recovered. These activities include: (1) metallurgical testing of oxide material from the 1.5 km by 0.5 km Carneritos area. Preliminary metallurgical tests have already been performed on material from the Masuparia area; (2) analysis of all geological information, including drill data, by an independent mineral resource modelling expert aiming for the distribution of drill holes required to produce a maiden NI 43-101 mineral resource; and (3) defining future drill hole locations upon which to achieve this mineral resource.
ON DEALS AND CORPORATE ISSUES
- Southern Empire Resources Corp. entered into an agreement with Cuprum Mining Corp. to acquire up to 100% in the share capital of Cuprum, and thereby on the Suaqui Verde copper project in Sonora. Southern can acquire 10% of Cuprum by paying C$500 K within 90 days and issuing 7.5 M shares of Southern to Cuprum shareholders. Another 10% can be acquired by paying C$250 K to Cuprum, issuing 7.5 M shares and incurring in C$750 K on exploration expenditures on or before 15 months of closing. An additional 10% can be acquired by paying $500 K and incurring in additional C$750 K in exploration on or before 30 months from closing. Additional 20% can be acquired by Southern by paying C$500 K and incurring additional C$750 K within 45 months of closing. Southern Empire can acquire an additional 50% in Cuprum by paying C$750 K and incurring in additional C$1 M (total of C$3.25 M) on or before 60 months of closing. A 2% NSR “may be payable” subsequent to commercial production. The project encompasses 1,952 hectares with oxide and secondarily enriched copper sulfide mineralization on a porphyry copper system. A resource defined with 106 historical RC and diamond holes contains 51.2 M tonnes @ 0.31% Cu in the indicated category.
- Excellon Resources Inc. provided an update on its projects in USA, Germany and Mexico. “As the Platosa Mine was placed on care and maintenance in earlyQ4 2022, the Company is assessing its strategic options, including the potential sale of select properties or complete divestiture of the Mexico operations. The Company will provide further updates on the Mexico operations as necessary.” (Platosa, Durango).
- Silver Tiger Metals Inc. announced the appointment of Francisco Albelais as Vice-President of Operations and Mr. Charles Spath as Vice-President of Technical Services. (El Tigre, Sonora).
- Gold Royalty Corp. has completed the indirect acquisition of a 1.0% net smelter return (NSR) royalty on portions of the Cozamin Cu-Ag mine in Zacatecas, from Endeavour Silver Corp. Pursuant to the transaction, Gold Royalty indirectly acquired the royalty for US$7.5 M in cash consideration.
ON SOCIAL RESPONSIBILITY
- No relevant news.
On the image below: Silicified structure ridge on a project in the Sonoran Desert. Picture by Jorge Cirett.
By Jorge Cirett
During the 31st week of the year (July 31st to August 6th, 2023), 25 companies working in Mexico posted news releases. Five companies informed on exploration work at its properties and seven more reported second quarter 2023 results. Two companies informed on private placements, while one declared a dividend payment. Five companies informed on technical reports, updated mineral resources, drilling results, mining plans and mine preparations on their projects. One company sold the royalties in some properties and one other is reviewing exploration opportunities in South America. ON MEXICO ISSUES, one company made clear commitment to get projects beyond Mexico, the country new mining policies showing its might. The Union – Grupo Mexico conflict in Sombrerete is to be solved in Mexico, not under the T-MEC, according to the federal government. Income tax returns from the mining industry fell by 35% on the first semester 2023. ON EXPLORATION, in Sonora, Prismo Metals mobilized a drill rig to Los Pavitos; Silver Spruce Resources resumed work at Diamante. In Chihuahua, Kootenay Silver updated on work at Columba. In Sinaloa, Prismo Metals updated on the drilling at Palos Verdes. ON MINING, Fresnillo PLC, Starcore International Mines, Capstone Copper, Equinox Gold, First Majestic Silver, Torex Gold and Orla Mining released production results for Q2 2023. ON FINANCING, Goldgroup Mining issued shares on a convertible loan. First Majestic Silver declared the payment of a dividend per share. Colibri closed the first tranche of a private placement. ON RESOURCES AND DEVELOPMENT, SilverCrest Metals released a new technical report with updated mineral resources and a new mine plan for Las Chispas in Sonora. Impact Silver updated on work to refurbish the Plomosas mine in Chihuahua. GoGold Resources released drilling results from Los Ricos South in Jalisco. Discovery Silver released drilling results from the FS program at Cordero, in Chihuahua. Heliostar Metals reported on the re-scoping study at Ana Paula, in Guerrero. ON DEALS AND CORPORATE ISSUES, Endeavour Silver entered into an agreement to sell its royalty on the Cozamin property. Xali Gold is to review exploration opportunities in South America. ON SOCIAL RESPONSIBILITY, no relevant news. ON MEXICO ISSUES
- Editor comments. One more company working exclusively in Mexico announced plans to look for projects in other countries. No one can say the policies imposed by the current administration are not producing the results sought, even if its full weight is to be felt in the years to come.
- The federal government directed that the labor conflict between Grupo Mexico and a Union (Sindicato Nacional de Trabajadores Mineros, Metalúrgicos, Siderúrgicos y Similares de la República Mexicana) in the Sombrerete mine in Zacatecas, has to be solved in Mexican courts, out of the T-MEC rapid response labor mechanism.
- Income tax returns fell 34.6% year on year on the first semester of 2023, the biggest drop in 20 years. On VAT (IVA) and special tax on products and services (IEPS), the mining sector had refunds for $134 M ($2,275 M pesos) and $6.5 M ($110 M pesos) respectively.
- Kootenay Silver Inc. informed two of three surface access agreements needed have been now signed, and the third one is in the final negotiation stage at its Columba project in Chihuahua.
- Prismo Metals Inc. announced the mobilization of a drill rig for the planned 2,500 m program to its Los Pavitos project in Sonora. Assays for the last four trenches dug at the project were published. Highlighted intervals comprise 1.0 m @ 3.98 gpt Au, 5 gpt Ag; 2.80 m @ 1.18 gpt Au, 16 gpt Ag.
- Prismo Metals Inc. updated on the drilling program at its Palos Verdes project in Sinaloa. Ten holes for a total of 2,035 m have been completed on the 2,500 m program, with the eleventh hole in progress and three holes remaining. On a second press release the company announced the expansion of the program by a joint committee by Prismo and Vizsla, to 3,600 m “in ten holes to be completed in two phases”.
- Silver Dollar Resources Inc. submitted a drilling permit application for the next phase of drilling at the Nora project in Durango. “The geological setting is a Tertiary-aged volcanic flow-dome complex. Gold-silver mineralization is hosted within two structurally controlled epithermal veins, Candy and Nora…. Only 500 m of the potential 3-km strike of the Candy vein structure has been drill tested, and only to a depth of 250 m below surface”.
- Colibri Resource Corp. and partner Silver Spruce Resources Inc. announced the resumption of field works at the Diamante project in Sonora. Stream sediment sampling, geological mapping and rock chip sampling are some of the planned activities.
- Fresnillo PLC. provided its Q2-2023 production results. The Company produced over 14 M Oz Ag, 152,217 Oz Au, 13,994 tonnes Pb and 25,670 tonnes Zn from its operation in Fresnillo, Saucito and Juanicipio in Zacatecas, Cienega in Durango, Herradura and Nochebuena in Sonora, and San Julian in Chihuahua.
- Starcore International Mines Ltd. presented results for its fiscal year and quarter ending on April 30, 2023. During the quarter the company processed 56.8 K tonnes @ 1.45 gpt Au, 11.2 gpt Ag, recovering 86.1% Au, 48.3% Ag, to produce 2,300 Oz Au, 10 K Oz Ag at its San Martin mine in Queretaro. For the year, the company produced 10,000 Oz Au, 85.4 K Oz Ag. Mine operating cash cost was $1,611 and $1,535 per AuEq Oz respectively for the quarter and full year.
- Capstone Copper Corp. reported financial results for the second quarter of 2023, including figures from its Mexican operations. At Cozamin, in Zacatecas, 6.6 K tonnes Cu were produced at cash cost $1.63 per Lb Cu.
- Equinox Gold Corp. announced its second quarter 2023 financial and operating results, without disclosing figures per project.
- First Majestic Silver Corp. announced unaudited consolidated financial results for the second quarter 2023. During the period the company produced 2.63 M Oz Ag, 40,658 Oz Au, or 5.97 M Oz AgEq.
- Torex Gold Resources Inc. reported Q2 2023 and operational results. During the period, the company mined 11.77 M tonnes from the open pit (13,293 tpd), 174 K tonnes from underground (1,913 tpd) at the Limon Guajes mine in Guerrero, of which 1.21 M tonnes were processed to produce 107,507 Oz Au at cash cost $848 per Oz Au and an all-in sustaining cost of $1,308 per Oz Au. Torex maintains its 2023 guidance to produce 440 K to 470 K Oz Au. The quarter closed with net cash of $273.8 M.
- Orla Mining Ltd. announced the results for the second quarter of 2023. At the Camino Rojo Oxide mine in Zacatecas, 29,058 Oz Au were produced at an AISC of $696 per Oz Au. The pit development is being hindered by SEMARNAT lateness to authorize permits. Cash balance at the end of the period was $114.5 M.
- Goldgroup Mining Inc. announced the issuance of 29.05 M shares upon conversion of the company’s outstanding convertible loan with a face value of $2.16 M (Cerro Prieto, Sonora).
- First Majestic Silver Corp. declared a cash dividend of $0.0051 per common share for the second quarter of 2023 (San Dimas, Durango).
- Colibri Resource Corp. closed the first tranche of the previously announced non-brokered private placement of “Units”, for gross proceeds of US$487 K. “Each Unit is comprised of: (i) US$1,000 principal amount of 10% secured convertible debentures (the “Debentures”) issued by the Company with a maturity date (“Maturity Date”) of 2 years from the date of issuance; and (ii) 5,416 common share purchase warrants of the Company” (Diamante, Sonora).
ON RESOURCES AND DEVELOPMENT
- SilverCrest Metals Inc. announced results from an updated independent technical report for the Las Chispas operation in Sonora. The report describes a 1,200 tpd operation of ore averaging 4.02 gpt Au, 396.1 gpt Ag, recovering 98.0% Au, 97.0% Ag, to produce 57 K Oz Au, 5.5 M Oz Ag per year in an operation with a mine life (LOM) of 8 years, to generate a post-tax net present value of $549 M. Cash cost is estimated at $7.84 per Oz AgEq and an AISC of $11.98 per Oz AgEq. “The Mineral Resource Estimate model was updated to reflect: narrower veins located over a larger area, thus requiring increased underground development, increased constraints on geologic, statistical, and geostatistical modelling parameters resulting in reductions in resources mainly in Babicanora Main and Babicanora Norte Main veins and increased resources in the Babi Vista Vein, including the Babi Vista Splay. Additionally, there is an increase in the number of Mineral Resource veins and the veins are more widely dispersed. The Updated Inferred Mineral Resource Estimate is reduced from the 2021 FS due to conversion to M&I Mineral Resources and application of the same stricter constraints as applied to M&I Mineral Resources”.
- Impact Silver Corp. provided an update on the recently acquired Plomosas mine in Chihuahua. The mill refurbishment is in the final stages, with testing and modification of the plant to start in late summer to ramp up production to the 200 tpd design capacity. The company has applied for an expansion of the current tailings pond while planning and permitting of the next one takes place. Refurbishment of ventilation, electrical and lighting systems are ongoing, and mine planning is being completed for 2023-2024. The current workforce is comprised by 70 company workers and 25 contract workers.
- GoGold Resources Inc. announced drilling results from Los Ricos South project in Jalisco. The highlighted core length intercepts comprise 30.2 m @ 1.68 gpt Au, 278 gpt Ag (including 9.70 m @ 4.54 gpt Au, 769 gpt Ag); 34.8 m @ 1.37 gpt Au, 132 gpt Ag (including 7.0 m @ 4.68 gpt Au, 440 gpt Ag); 32.70 m @ 1.19 gpt Au, 124 gpt Ag; 11.7 m @ 0.93 gpt Au, 387 gpt Ag (including 1.40 m @ 5.36 gpt Au, 2,780 gpt Ag); 23.10 m @ 0.80 gpt Au, 143 gpt Ag; 28.10 m @ 0.71 gpt Au, 129 gpt Ag. “The Main area drilling campaign’s purposes is to better define the very high-grade portions of the current deposit that may be amenable to bulk underground mining…… It is expected that these holes will be included in an updated Resource to be released by the end of the summer”.
- Discovery Silver Corp. released results from feasibility study (FS) drilling at its Cordero project in Chihuahua. Highlighted core length intervals of the reserve and expansion drilling comprise 62.10 m @ 0.25 gpt Au, 48 gpt Ag, 0.6% Pb, 0.6% Zn; 45.0 m @ 0.24 gpt Au, 66 gpt Ag, 0.5% Pb, 0.7% Zn; 51.7 m @ 0.19 gpt Au, 51 gpt Ag, 0.6% Pb, 0.9% Zn; 15.10 m @ 0.08 gpt Au, 278 gpt Ag, 3.1% Pb, 2.9% Zn; 12.4 m @ 0.19 gpt Au, 168 gpt Ag, 1.4% Pb, 3.1% Zn; 37.4 m @ 0.09 gpt Au, 79 gpt Ag, 1.1% Pb, 1.5% Zn; 38.5 m @ 0.17 gpt Au, 104 gpt Ag, 0.5% Pb, 0.3% Zn; 82.1 m @ 0.03 gpt Au, 33 gpt Ag, 0.6% Pb, 0.9% Zn. Discovery has now drilled 52,000 m in 164 holes as part of the FS drill program. Incoming “property-wide drilling will initially target large chargeability anomalies in the Sanson area (approximately 3.5 km to the northeast of Cordero) and skarn targets at depth in the northeast of the deposit. Currently, 9,000m of drilling is planned in 2023”.
- Heliostar Metals Ltd. reported progress on re-scoping of the current pre-feasibility study (PFS) at the Ana Paula project in Guerrero. “The Company is evaluating three underground mining scenarios, with different cut-off grades and mining rates, that are being advanced for more detailed evaluation and comparison…… The Company will refine the options upon receipt of an updated resource model and metallurgical program results, both of which rely on drilling completed in 2023. Metallurgical results will be reported in October and an updated resource model is expected in November 2023”.
ON DEALS AND CORPORATE ISSUES
- Endeavour Silver Corp. entered into an agreement with Gold Royalty Corp. to sell all of its interest in a 1% Cozamin Royalty for a total consideration of US$7.5 M, payable in cash. “The Royalty applies to two concessions (Calicanto and Vicochea) on Capstone’s Cozamin copper-silver mine, located 3.6 kilometres north-northwest of Zacatecas City in state of Zacatecas, Mexico”.
- Xali Gold Corp. has decided to review exploration opportunities in South America, including Peru. The company updated on its Mexican projects: Exploration at El Oro in Estado de Mexico has been put on hold, whilst Sun River Gold (who has an option in the El Oro mine tailings) has been advancing permitting and providing some cash flow through advances on the Net Profit Interest due once in production. “Negotiations are also underway with Mexican groups regarding both upgrades and financing commitments to make the San Dieguito de Arriba (“SDA”) Plant in Western Mexico fully operational. Xali Gold terminated the previously announced agreement (see January 18, 2023 News Release) with Minera Cinco Reales S.A. de C.V. (“MCR”) earlier this month due to MCR’s lack of progress”.
ON SOCIAL RESPONSIBILITY
- Aura Minerals Inc. released its 2022 sustainability report, with a 62% reduction in frequency rates of accidents, 92% of water recycling and establishing a decarbonization plan with the goal of reducing GHG emissions by 5% from 2020 levels by 2023.
On the image below: Silicified vein ridges on a project in the Sonoran Desert. Picture by Jorge Cirett.
By Miguel A Heredia During the 30th week of the year (July 24th to July 30th, 2023), at least 15 press releases were announced by companies working in Mexico, and 3 news published by the media, with five communicating production and financial results, four commenting on Mexican issues, three reporting resources and development of their properties, two disclosing deals and corporate issues, two informing on exploration results, and , two announcing financing issues, ON MEXICO ISSUES, Minera Autlan’s revenues in Q2, 2023 fell 51% due to the drop in manganese prices. Grupo Mexico obtained an increase of 37% of its net profits in Q2, 2023 due to the rise in copper prices. Several countries have requested a 10-year moratorium or pause on the exploitation of marine mining, as there is little information about the damage it could cause. Prismo, Silver Tiger and Reyna Gold reported the best drilling intercepts in Mexico on the fourth week of July, 2023. ON EXPLORATION, In Sonora, Reyna Gold released results from the first ten holes for a total of 1,328m of planned 5,500m from phase 2 drilling at its La Gloria project. In Sinaloa, Prismo reported results from seven holes drilled at its Palos Verdes project, in the Panuco mining district. ON MINING, Sierra Metals reported Q2, 2023 production and financial results from its Mexican operations. Mag Silver reported Q2, 2023 production results from its Juanicipio Mine in Zacatecas (56% / 44% Fresnillo plc and Mag respectively). Alamos Gold presented Q2 and H1 production and financial results from its Mulatos Mine in Sonora. Gold Resource announced Q2, 2023 production and financial results from its Don David Gold Mine in Oaxaca. Agnico reported Q2, and H1, 2023 production and financial results from their Pinos Altos and La India mines in Chihuahua and Sonora respectively. ON FINANCING, Bear Creek closed its previously announced non-brokered private placement for gross proceeds of CAD $8.2M (Mercedes Mine, Sonora). Excellon announced agreement to extend maturity of convertible debentures (La Negra Mine, Queretaro). ON RESOURCES AND DEVELOPMENT, Silver Tiger released drill results from its ongoing program at El Tigre project in Sonora. Torex provided a Q3, 2023 update on its Media Luna project in Guerrero. SilverCrest provided notice of updated technical report (Las Chispas Mine, Sonora). ON DEALS AND CORPORATE ISSUES, Fortuna announced that it will release its unaudited financial statements and Management Discussions & Analysis (MD&A) for the second quarter 2023 on Wednesday, August 9, 2023, after the market closes (San Jose Mine, Oaxaca). Tocvan acquired 100% interest in Pilar expansion area project in Sonora. ON SOCIAL RESPONSIBILITY, Fortuna Silver published its fifth annual sustainability report (San Jose Mine, Oaxaca).
ON MEXICO ISSUE
- Minera Autlan’s revenues in Q2, 2023 fell due to the drop in manganese prices. During the Q2, 2023 the revenues of the Autlán mining company totaled USD $85.8M, that is, they had a loss of 51.2% in relation to the USD $175.7M obtained during the same period of 2022. In addition, between April and June 2023, its operating flow had a 92.9% drop, losing USD $66.4M. In its ﬁnancial report issued to the Mexican Stock Exchange (BMV), the company explained that said loss was the result of different factors, one of them the drop in the prices of products such as manganese, for the production of manganese ferroalloys, as well as in the inputs for the production of steel. The mining company reported a net loss of USD $20M, which is added to the USD $11.8M lost in the first quarter of this year, thus totaling net losses of USD $31.8M in the first half of the year.
- Grupo Mexico reported a net profit of USD $840M, which represented an increase of 37.5% compared to the USD $611M reported during the same period of the former year. In addition to the profits, the company owned by Germán Larrea had an increase in its operating flow of 14.6% to a value of USD $1,628M, that is, USD $227M more than in the second quarter of the previous year. In addition to the gains in its net profit and in its operating ﬂow, the conglomerate that operates three divisions (Minera México, Grupo México Transportes and Grupo México Infraestructura), indicated that its revenues during Q2, 2023 amounted to USD $3,453M, which represented a growth of 7.8% compared to the USDS $3,203 that it reached in the same period of the previous year. Finally, it explained that, in the second quarter of the year, 79.2% of its income came from copper, 9.9% from molybdenum, 4% from silver, 2.8% from zinc, and the rest from income from gold and other byproducts.
- Several countries including Brazil and Costa Rica, have requested a 10-year moratorium or pause on the exploitation of marine mining, as there is little information about the damage it could cause. The debate in the Assembly allows the 168 Member States of the International Seabed Authority (ISA), not just the 36 Council members, to express their views on this issue and formulate a general policy for the protection of the marine environment. At the Council meeting, governments and delegations from countries such as Norway, Mexico, the United Kingdom, China and Nauru continued to push for the mining code to be adopted as soon as possible. On the seabed, as far as is known, are 96% of the cobalt reserves, 84% of the nickel and 79% of the manganese, which are now crucial for the manufacture of batteries, wind generators and photovoltaic panels.
- Prismo Metals Inc., Silver Tiger Metals Inc., and Reyna Silver Corp., reported the best drilling intercepts in Mexico on the fourth week of July, 2023. Details are shown in the table below:
- Reyna Gold Corp., released results from the first ten holes for a total of 1,328m of planned 5,500m from phase 2 drilling at its La Gloria project in Sonora at La Republicana Zone. Drilling highlights include hole LG-23-39 with 1.09 g/t Au over 21.1m, including 14.20 g/t Au, 49 g/t Ag, and 0.32% Pb over 1m, including 1.67 g/t Au, 20 g/t Ag, and 0.3% Pb over 1m, including 1.20 g/t Au over 1m, including 1.77 g/t Au, 20 g/t Ag, and 0.5% Cu over 0.5m, including 9.14 g/t Au and 79 g/t Ag over 0.5m; hole LG-23-32 with 0.96 g/t Au over 19.90m, including 4 g/t Au and 23 g/t Ag over 1m, including 2.04 g/t Au and 20 g/t Ag over 0.75m, including 12.25 g/t Au, 123 g/t Ag, and 0.3% Pb over 0.90m; and hole LG-23-40 with 0.76 g/t Au over 19.05m, including 3.68 g/t Au over 3.85m, including 1.79 g/t Au and 17 g/t Ag over 0.55m, including 9.28 g/t Au, 96 g/t Ag, 0.5% Pb, and 0.3% Zn over 0.50m, including 19.55 g/t Au, 161 g/t Ag, 1.26% Cu, and 0.1% Zn over 0.35m, including 1.38 g/t Au, 14 g/t Ag, 0.1% Pb, and 0.2% Zn over 0.60m. “Two initial holes into Western Zone targeting a large Induced Polarization anomaly produced long intersections of anomalies of zinc and molybdenum with high levels of sulfides (pyrite, pyrrhotite, and chalcopyrite) and multiple gold intersections correlated with bismuth, adding to the evidence of potential proximity to a mineralized porphyry system”.
- Prismo Metals Inc., reported results from seven holes drilled at its Palos Verdes project, in the Panuco mining district in Sinaloa. Drilling highlights include hole PV-23-25 with 1.36 g/t Au, 384 g/t Ag, 0.11% Cu, 0.1% Pb, and 0.3% Zn (512 g/t AgEq) over 0.3m, plus 38.2 g/t Au, 1,157 g/t Ag, 0.08% Cu, 0.06% Pb, and 0.1% Zn (4,311 g/t AgEq) over 1.35m, including 102 g/t Au, 3,100 g/t Ag, 0.2% Cu, 0.2% Pb, and 0.3% Zn (11,520 g/t AgEq) over 0.5m; hole PV-23-24 with 0.87 g/t Au, 43 g/t Ag, 0.07% Cu, 0.04% Pb, and 1.46% Zn (178 g/t AgEq) over 2m, including 1.84 g/t Au, 95 g/t Ag, 0.05% Cu, 0.05% Pb, and 1.3% Zn (302 g/t AgEq) over 0.84m, plus 3.3 g/t Au, 32 g/t Ag, 0.14% Cu, 0.4% Pb, and 1.6% Zn (384 g/t AgEq) over 1.83m, including 11.90 g/t Au, 60 g/t Ag, 0.2% Cu, 0.7% Pb, and 3.9% Zn (1,234 g/t AgEq) over 0.49m.; and hole PV-23-20 with 1.58 g/t Au, 0.01% Pb, and 0.01% Zn (189 g/t AgEq) over 0.9m, plus 0.21 g/t Au, 53 g/t Ag, and 0.01% Zn (71 g/t AgEq) over 0.20m.
- Sierra Metals Inc., reported Q2, 2023 production and financial results from its Mexican operations. At Bolivar Mine, Chihuahua, the company processed 405,987 tonnes of 0.92% Cu, 20 g/t Ag, and 0.42% Au with metallurgical recoveries of 92.92%, 80.45%, and 66.38% respectively, to produce 7.65M Lb Cu, 207K Oz Ag, and 3,678 Oz Au (10.72M Lb CuEq). At Cusi Mine, Chihuahua, Sierra Metals processed 51,750 tonnes of 160 g/t Ag, 0.14 g/t Au, and 0.33% Pb with ,metallurgical recoveries of 81.67%, 58.06%, and 86.54% to produce 217K Oz Ag, 131 Oz Au, and 326K Lb Pb (241K Oz AgEq). In both cases, CuEq and AgEq were calculated at realized prices of USD $3.99/Lb Cu, USD $24.17/Oz Ag, USD $1,977/Oz Au, and USD $0.96/Lb Pb.
- Mag Silver Corp., reported Q2, 2023 production results from its Juanicipio Mine in Zacatecas (56% / 44% Fresnillo plc and Mag respectively). The project operator (Fresnillo plc) processed 377,018 tonnes with an average grade of 498 g/t Ag to produce 5.27M Oz Ag, 10.6K Oz Au, 7.62M Lb Pb, and 12.14M Lb Zn.
- Alamos Gold Inc., presented Q2 and H1 production and financial results from its Mulatos Mine in Sonora. During the period Q2, 2023, the company produced 60.3K Oz Au and sold 60.2K Oz Au for a cost of sales of USD $70.9M. The company reported a cost of sales for Oz Au of USD $1,178 per Oz Au sold, a total cash cost and AISC of USD $847 and USD $894 respectively per Oz Au sold, and a capital expenditures (sustaining, growth and capitalized expenditures) of USD $6.5M. For the period H1, 2023, Alamos has produced 110.8K Oz Au and sold 113.5K Oz Au for a cost of sales of USD $133.3M. The company reported a cost of sales for Oz Au of USD $1,175 per Oz Au sold, a total cash cost and AISC of USD $843 and USD $903 respectively per Oz Au sold, and a capital expenditures (sustaining, growth and capitalized expenditures) of USD $9.2M. The company also provided its 2023 outlook. It plans to produce 175K-185K Oz Au at a total cash and AISC of USD $900-950 and USD $950-1,000 respectively per Oz Au sold; and capital expenditures (sustaining, growth and capitalized expenditures) of USD $19-24M.
- Gold Resource Corporation announced Q2, 2023 production and financial results from its Don David Gold Mine in Oaxaca. The company milled 113,510 tonnes of 1.59 g/t Au, 86 g/t Ag, 0.37% Cu, 1.6% Pb, and 3.7% Zn to produce 4,637 Oz Au, 289.8K Oz Ag, 748.2K Lb Cu, 3.1M Lb Pb, and 8M Lb Zn and sold 4,287 Oz Au, 274.2K Oz Ag, 732.5K Lb Cu, 2.95M Lb Pb, and 7.03M Lb Zn at realized prices of USD $2,010 per Oz Au, USD $24.03 per Oz Ag, USD $8,397 per tonne of Cu, USD $2,153 per tonne of Pb, and USD $2,485 per tonne of Zn. Total cash cost and AISC were USD $1,333 and USD $1,900 per Oz Au sold respectively. Year to date highlight include a total of 10.8K Oz Au sold and 569K Oz Ag sold, with a working capital of USD $20.8M at June 30, 2023.
- Agnico Eagle Mines Limited reported Q2, and H1, 2023 production and financial results from their Pinos Altos and La India mines in Chihuahua and Sonora respectively. At Pinos Altos, Chihuahua, Agnico milled 401K tonnes in Q2, 2023 with an average grade of 1.82 g/t Au to produce 22,159 Oz Au at a production cost of USD $87 per tonne, a production cost per Oz Au produced of USD $1,566, and a total cash cost of USDS $1,282 per Oz Au produced. Year to date, Agnico has produced 765K tonnes with an average grade of 1.97 g/t Au to produce 46,293 Oz Au at a production cost of USD $88 per tonne, a production cost per Oz Au produced of USD $1,461, and a total cash cost of USDS $1,196 per Oz Au produced. At La India, Sonora, the company milled 880K tonnes in Q2, 2023 with an average grade of 0.74 g/t Au to produce 17,833 Oz Au at a production cost of USD $27 per tonne, a production cost per Oz Au produced of USD $1,326 and a total cash cost of USDS $1,385 per Oz Au produced. Year to date, Agnico has produced 1.54M tonnes with an average grade of 0.72 g/t Au to produce 34,154 Oz Au at a production cost of USD $28 per tonne, a production cost per Oz Au produced of USD $1,281, and a total cash cost of USDS $1,348 per Oz Au produced. Open pit mining and crusher operations are expected to be concluded in the Q4, 2023.
- Bear Creek Mining Corporation closed its previously announced non-brokered private placement. A total of 16.725M of shares were sold at a price of CAD $0.49 per common share for gross proceeds of CAD $8.2M. Net proceeds will be used for exploration and production improvements at its Mercedes Mine in Sonora, and for general corporate purposes.
- Excellon Resources Inc., announced agreement to extend maturity of convertible. The company entered into a binding agreement with holders of greater than 662/3% of its outstanding 5.75% secured convertible debentures in the aggregate principal amount of CAD $17.91M to extend the maturity date of the Convertible Debentures by 367 days from July 30, 2023 to July 31, 2024 (La Negra Mine, Querétaro).
ON RESOURCES AND DEVELOPMENT
- Silver Tiger Metals Inc., released drill results from its ongoing program at El Tigre project in Sonora. Hole ET-23-463 intersected 0.95 g/t Au, 2 g/t Ag, 0.01% Pb, and 0.01% Zn (73 g/t AgEq) over 36m on the Open Pit Gold Zone, including 2.79 g/t Au, 2 g/t Ag, 0.01% Pb, and 0.01% Zn (212 g/t AgEq) over 6.4m, including 7.18 g/t Au, 5 g/t Ag, 0.01% Pb, and 0.01% Zn (544 g/t AgEq) over 1.5m, plus 0.13 g/t Au, 610 g/t Ag, 0.61% Cu, 0.4% Pb, and 0.7% Zn (711 g/t AgEq) over 9.9m on the Sulphide Zone, including 0.18 g/t, 827 g/t Ag, 0.83% Cu, 0.6% Pb, and 0.9% Zn (963 g/t AgEq) over 6.2m, including 0.19 g/t Au, 1,431 g/t Ag, 2.08% Cu, 0.5% Pb, and 1.7% Zn (1,713 g/t AgEq) over 0.7m, including 0.14 g/t Au, 1,089 g/t Ag, 1.01% Cu, 1.0% Pb, and 1.5% Zn (1,269 g/t AgEq) over 2.7m, including 0.14 g/t Au, 1,166 g/t Ag, 1.04% Cu, 0.8% Pb, and 0.5% Zn (1,3131 g/t AgEq) over 2m, plus 0.17 g/t Au, 213 g/T Ag, 0.24% Cu, 1.7% Pb, and 1.4% Zn (335 g/t AgEq) over 4m on Elk Tigre Vein Zone, including 0.18 g/t Au, 243 g/t Ag, 0.27% Cu, 2 % Pb, and 1.6% Zn (385 g/t AgEq) over 3.2m; and hole ET-23-464 with 0.04 g/t Au, 63 g/t Ag, 0.08% Cu, 0.2% Pb, and 0.03% Zn (80 g/t AgEq) over 3m on the HW Gold Zone, including 0.04 g/t Au, 167 g/t Ag, 0.18% Cu, 0.6% Pb, and 0.06% Zn (204 g/t AgEq) over 0.7m, plus 0.07 g/t Au, 31 g/t Ag, 0.13% Cu, 0.5% Pb, and 0.4% Zn (72 g/t AgEq) over 12m, including 0.08 g/t Au, g9 g/t Ag, 0.09% Cu, 0.7% Pb, and 1.2% Zn (140 g/t AgEq) over 3m, plus 0.33 g/t Au, 43 g/t Ag, 0.03% Cu, 1.7% Pb, and 11.6% Zn (496 g/t AgEq) over 6.7m on the Sulphide Zone, including 0.21 g/t Au, 39 g/t Ag, 0.04% Cu, 2.6% Pb, and 24.6% Zn (936 g/t AgEq) over 0.7m, plus 0.26 g/t Au, 14 g/t Ag, 0.02% Cu, 0.7% Pb, and 0.7% Zn (64 g/t AgEq) over 3.1m. The company plans further drilling to the north and south of the Sulphide Zone to expand this area of known mineralization.
- Torex Gold Resources Inc., provided a Q3, 2023 update on its Media Luna project in Guerrero. The company reported that development activities continue to advance with the project remaining in budget and on schedule, with 35% complete across engineering, procurement, underground development, and surface construction. With USD $143.6M of expenditures incurred through H1 and the quarterly spend rate expected to increase further, full year guided expenditures are trending towards the lower end of the guided range of $390M to $440M. As of June 30th, 45% of upfront project expenditures had been committed or incurred. The Guajes Tunnel has advanced 4,500 metres with breakthrough on track for early Q1 2024, if not earlier. At South Portal Lower, the main spiral ramp was completed post-quarter end and the primary tunnel has advanced 2,075 metres. Civil works on both sides of the Balsas River continued during the quarter, and concrete installation will commence as the site-wide concrete contractor is selected. “With development activities tracking to plan, robust financial liquidity, and strong ongoing cash flow from El Limón Guajes, we are well positioned physically and financially to deliver Media Luna on time and on budget, with first concentrate production in Q4 2024 and commercial production in early 2025.”
- SilverCrest Metals Inc., provided notice of updated technical report (Las Chispas Mine, Sonora). The company announced that it will release results from its updated Technical Report on Monday, July 31, 2023 after market close.
ON DEALS AND CORPORATE ISSUES
- Fortuna Silver Mines Inc., announced that it will release its unaudited financial statements and Management Discussions & Analysis (MD&A) for the second quarter 2023 on Wednesday, August 9, 2023, after the market closes (San Jose Mine, Oaxaca).
- Tocvan Ventures Corp., entered into a binding letter of intent with a private title owner for the 100% acquisition of 2,172.7 ha immediately adjacent and north of its Pilar Gold-Silver Project Sonora, Mexico. Prior to closing a definitive agreement, the acquisition is subject to a 60-day due diligence period effective July 25, 2023. Terms of the agreement include a cash payment of USD $4M and USD $2.5M in common shares which should be issued over the 5-year term of the agreement. A total minimum work commitment of USD $1 million USD is considered over the agreement. The title owner will retain a 2% NSR on the properties acquired. After the initial 5-year term the company can elect to extend the agreement an additional 10 years by starting advanced royalty payments or purchase full title ownership through an additional cash payment of USD $500K. On Closing of a Definitive Agreement, an initial payment of USD $250K will be made.
ON SOCIAL RESPONSIBILITY
- Fortuna Silver Mines Inc., published its fifth annual sustainability report, which details the Company´s performance on key environmental, social, and governance (ESG) indicators during 2022. Highlights include that 75% of the directors are independent, 37.5% of the directors are female; there are 5,233 full-time workers, including 2,174 direct employees, from which 16.84% of all employees are female and19.15% of management positions are female; USD $5.64M were spent on community-related investments; 41.85% of employees come from local communities, and 7.71% of suppliers sourced from local communities; 50% of the operating mines are compliant with ISO 14001; 63% of water used is recycled: and greenhouse gas (GHG) emissions intensity of 17.94 tonnes of carbon dioxide equivalent (tCO2eq) emitted per thousand tonnes of processed ore. (San Jose Mine, Oaxaca).
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 diatreme breccia in a project in Durango, Mexico. Photo by Miguel A Heredia.