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

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By Jorge Cirett

During the 32nd week of the year (August 5th to August 11th, 2019), at least 36 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, The president of Mexico announced in a political rally that no more mining concessions are to be granted during his term in office. ON EXPLORATION, In Chihuahua, Kootenay has mobilized a drill rig to its Columba property. In Coahuila, Discovery Metals released high-grade results from underground sampling at Minerva. In Zacatecas, Alien Metals carried out surface sampling at Los Campos, Donovan and San Celso projects; Advance Gold started an IP survey at Tabasqueña. ON MINING, Gold Resource, Premier Gold, Hecla Mining, Golden Minerals, First Majestic, Coeur Mining, Argonaut Gold, Pan American Silver, Avino Silver, Endeavour Silver, Alio Gold, Torex Gold, Fortuna Silver and GoGold reported second quarter production and/or financial results for the second quarter. Mexus Gold poured first gold at its Santa Elena mine in Sonora. ON FINANCING, Excellon Resources entered into an agreement with a sole bookrunner for gross proceeds of $10 M. Santacruz Silver granted options to its directors, officers, employees, consultants and advisors. Oroco closed a first tranche for $900 K. Impact Silver completed the first series of a round of financing for $2.4 M in gross proceeds.   ON RESOURCES AND DEVELOPMENT, US Antimony continues mining at Los Juarez, Queretaro. Hecla presented drill results from San Sebastian, Durango. Orla Mining filed the FS on Camino Rojo Oxide project. VVC Exploration approved the construction of a pilot plant on its Northern Mexico Copper project. Minera Alamos received the needed environmental approval for mine construction at Santana, Sonora. Goldplay Exploration compiled all the exploration information on a 6 km trend outside the known resource in San Marcial, Sinaloa ON DEALS AND CORPORATE ISSUES, Discovery Metals filed an early warning report in respect to its holdings in Levon Resources. Tamino Minerals is working to remove the stop sign to become current on the OTC. Minera Alamos reported the retirement from the Board of Directors of Mr. Chester Millar, (a long time player in the Mexican Mining scene). Mako Mining informed the near completion of production from La Trinidad mine in Sinaloa. Chesapeake Gold re-purchased a 1% NSR from Wheaton Precious Metals. ON SOCIAL RESPONSIBILITY. Argonaut Gold engaged in multiple community projects during the second quarter on its operations at San Agustin (Durango), El Castillo (Durango), La Colorada (Sonora) and La Paz (Baja California Sur).

ON MEXICO ISSUES

  • No more mining concessions in my term: AMLO. The president of Mexico, Andres Manuel Lopez Obrador, announced this Sunday (August 11th, 2019) in a political rally in Concepcion del Oro, Zacatecas, that under his term no more mining concessions are to be granted. “To give concessions of the mining regions to national and foreign companies was a policy forwarded since the time of (Carlos) Salinas de Gortari, and up to 80 million hectares were delivered for mining exploitation. To grasp it: let’s think in our territory. Mexico has 200 million hectares, and 80 million hectares, about 40 percent of the national territory. Never in History so much of our sovereign soil had been transferred”, he said. He also reiterated that current concessions are to continue, but no new ones are to be delivered. “We are not to cancel (the concessions), but we are not to continue delivering new concessions for mining exploitation. Because it was too much what was delivered. If we analyze it, we are going to conclude that it wasn’t delivered to produce, but to speculate financially ………. With what has been delivered they have to produce. That’s the main purpose and not speculation. What we ask the mining companies is, first, take care of the environment, that no territory is destroyed, not to act as it is done in other countries”. He asked for Mexican miners to be paid as in the United States, or Canada, and that the same environmental rules be applied, also making a call for the salaries of workers to be raised, with the same benefits. (Editor’s note.- All the president arguments can be easily refuted to show that granting mining concessions is, and has been, very helpful for the country and countless of Mexicans. But there is no valid argument to present to the president that on the one hand is calling for more investment, while in the other hand is closing the door to it.)

ON EXPLORATION

  • Kootenay Silver Inc. has mobilized a drill rig to commence a 3,000 m core drill program at its Columba project in Chihuahua. “The first 12 holes of the drill program will be designed to test the F vein where underground development work extended to 200 meter depth and the historic mining occurred”.
  • Alien Metals Ltd. carried out some surface rock sampling at its Donovan, Los Campos and San Celso projects in Zacatecas, results pending.
  • Advance Gold Corp. started a 800 x 500 m 3D induced polarization (IP) geophysical survey on its Tabaqueña project, Zacatecas. The goal of the survey is to assess the depth potential below the near surface mineralized zone that was encountered in the andesites, with the graphitic phyllites below still open at depth.
  • Discovery Metals Corp. released assay results for 112 underground samples from its drill permitted Minerva Ag-Zn-Pb project in Coahuila. Highlighted results from the Minerva mine include 0.4 m @ 8,880 gpt Ag, 8.7% Zn, 43.2% Zn, 2.30% Cu, 0.3 m @ 1,200 gpt Ag, 24.8% Zn, 18.2% Pb, 0.15% Cu; 0.2 m @ 1,340 gpt Ag, 20.8% Zn, 19.6% Pb, 0.11% Cu; 0.9 m @ 517 gpt Ag, 5.7% Zn, 3.3% Pb, 0.07% Cu in veins, 0.3 m @ 1,485 gpt Ag, 8.6% Zn, 32.1% Pb, 0.10% Cu; 0.3 m @ 1,145 gpt Ag, 10.8% Zn, 34.8% Pb, 0.10% Cu; 0.5 m @ 220 gpt Ag, 34.6% Zn, 13.2% Pb, 0.05% Cu; 0.4 m @ 1,050 gpt Ag, 5.8% Zn, 26.4% Pb; 1.4 m @ 131 gpt Ag, 22.2% Zn, 2.7% Pb, 0.04% Cu in mantos. Underground samples from the Concordia area returned 0.7 m @ 848 gpt Ag, 2.7% Zn, 12.5% Pb, 0.24% Cu; 0.8 m @ 320 gpt Ag, nil Zn, 13% Pb, 0.06% Cu; 1.1 m @ 267 gpt Ag, 0.4% Zn, 6.3% Pb, 0.06% Cu in vein and limestone. At Tercia area, samples from a small working in diorite returned 0.5 m @ 226 gpt Ag, 0.2% Zn, 15.5% Pb; 0.5 m @ 181 gpt Ag, 0.2% Zn, 10.0% Pb; 1.3 m @ 124 gpt Ag, 3.2% Zn, 6.1% Pb in breccias (fault zones?).

ON MINING

  • Mexus Gold US. has poured gold at its Santa Elena mine in Sonora (not to mistake for First Majestic’s Santa Elena mine, also in Sonora). The company recovered gold from its first heap leach pad using its Merrill Crowe gold recovery system. Mexus continues to mine and crush ore for the 2nd lift on heap leach pad #1.
  • Gold Resource Corp. presented production results for the second quarter 2019. At the Oaxaca’s Mining Unit 7,881 Oz Au, 466.5 K Oz Ag, 482 tonnes Cu, 2,304 tonnes Pb, 6,054 tonnes Zn were produced. At the Arista mine 115.8 K tonnes were milled @ 1.87 gpt Au, 92 gpt Ag, 0.40% Cu, 1.96% Pb, 4.77% Zn. At the Aguila open pit mine 8,872 tonnes were milled @ 1.39 gpt Au, 43 gpt Ag. At the Mirador mine 6,737 tonnes were milled @ 1.10 gpt Au, 201 gpt Ag. The company had $7.93 M of cash and cash equivalents by the end of the period.
  • Premier Gold Mines Ltd. reported operating results for the second quarter 2019, including figures from its Mexican operations. At Mercedes, in Sonora, 167.6 K tonnes were milled @ 3.0 gpt Au, 27.2 gpt Ag, recovering 95.9% Au, 35.0% Ag to produce 15,532 Oz Au, 51,354 Oz Ag. Co-product cash cost was $1,053 per Oz Au, and the co-product all-in-sustaining cost was $1,254 per Oz Au. On by-product basis, cash cost was 1,044 per Oz Au and AISC $1,252 per OZ Au. A total of 11,281 m of drilling targeted the Diluvio, Marianas and Barrancas veins “to replace reserves support mine production, test extensions of the main mine trends and to test new geological targets.”
  • Hecla Mining Co. presented second quarter 2019 results, including figure from its operations in Mexico. At San Sebastian, Durango, 463.7 K Oz Ag, 3,547 Oz Au were produced at by-product cash cost $9.22 per Oz Ag and by-product AISC$15.50.
  • Golden Minerals Co. released financial results for the second quarter 2019. An important point on the report is the still to be completed $22 M sale of the Velardeña, Santa Maria and Rodeo properties, as well as the Velardeña mill, to Grupo Autlan. Golden had a net loss of $2.5 M , ending the period with $1.8 M in cash and cash equivalents.
  • First Majestic Silver Corp. announced financial results for the second quarter 2019. During the period 3.2 M Oz Ag, 6.4 M OZ AgEq were produced at cash cost $6.84 per Oz Ag, and AISC $ 14.76 per Oz Ag on a consolidated basis from its San Dimas (Durango), Santa Elena (Sonora), La Encantada (Coahuila), San Martin (Jalisco), La Parrilla (Durango), Del Toro (Zacatecas). At the end of the period the company had $94.5 M in cash and cash equivalents.First Majestic production table1
  • Coeur Mining Inc. reported second quarter 2019 financial results, including figures from its Mexican operations. At Palmarejo, in Chihuahua, 447.7 K tonnes were milled @ 2.18 gpt Au, 147 gpt Ag, recovering 87.7% Au, 81.8% Ag, to produce 28,246 Oz Au, 1.73 M Oz Ag at adjusted CAS $741 per Oz Au and adjusted CAS $9.17 per Oz Ag. Production started and is to be ramped up 400 tonnes per day (tpd) at La Nacion deposit.
  • Argonaut Gold Inc. announced its operating and financial results for the second qurter of 2019. At Cerro del Gallo in Guanajuato, Argonaut is advancing on the pre-feasibility study, whereas at San Antonio in Baja California participated in a public information meeting regarding the environmental impact assessment process, while advancing in environmental permitting. At El Castillo, Durango, 2.3 M tonnes of ore @ 0.39 gpt Au, 3.49 M tonnes of waste were moved at a rate of 64 K tonnes per day (tpd) to produce 14,361 Oz Au, 29,791 Oz Ag at cash cost $976 per gold equivalent ounce. At San Agustin (Durango), 1.96 M tonnes of ore @ 0.39 gpt Au, 1.41 M tonnes waste were moved at 37 K tpd to produce 12,684 Oz Au, 43,097 Oz Ag at cash cost $910 per gold equivalent ounce. At La Colorada (Sonora) 1.19 M tonnes of ore @ 0.46 gpt Au, 5.9 M tonnes of waste were moved at 78 K tpd to produce 11,723 Oz Au, 35,485 Oz Ag at cash cost $894 per gold equivalent ounce.
  • Pan American Silver Corp. reported unaudited results for the second quarter 2019, including figures from its Mexican operations. At La Colorada, in Zacatecas, 2.04 M Oz Ag, 1.1 K Oz Au were produced at cash cost $2.82 per Oz Ag and AISC $5.07 per Oz Ag. At Dolores, in Chihuahua, 1.23 M Oz Ag, 28.5 K Oz Au were produced at cash cost $6.87 per Oz Ag and AISC $22.30 per Oz Ag. “Drilling at the La Colorada mine has further defined the skarn mineralization, indicating a high concentration of base metal and silver mineralization over large widths”. By the end of the period the company had cash and shorth-term investments for $138.8 M, and working capital of $793.1 M.
  • Avino Silver & Gold Mines Ltd. released consolidated financial results for the second quarter 2019. During the period 200.9 K tonnes were milled to produce 426.1 K Oz Ag, 1,609 Oz Au, 1.14 M Lb Cu, or 599.5 K Oz AgEq, with consolidated cash cost per AgEq ounce of $10.89, and AISC $13.10 per AgEq ounce. At the end of the quarter Avino held $3.4 M of cash, and a working capital of $8.7 M.
  • Endeavour Silver Corp. released its financial results for the second quarter 2019. Consolidated production from its Guanacevi (Durango), Bolañitos (Guanajuato), El Cubo (Guanajuato) and El Compas (Zacatecas) mines was 1.06 M Oz Ag, 9,558 Oz Au, or 1.8 M Oz AgEq at an all-in-sustaining cost of $20.90 per Oz Ag net of gold credits. During the period received the final tailings permit for its Terronera project in Jalisco, and reported positive drill results from Bolañitos and Guanacevi.
  • Alio Gold Inc. reported second quarter 2019 results, including figures from its operations in Mexico. At San Francisco, in Sonora, produced 10,230 Oz Au, 5,112 Oz Ag, with a by-product cost of $1,077 per Oz Au and an AISC of $1,079 per Oz Au. In January 2019 Alio stopped active mining in the San Francisco pit and focused on processing the low grade stockpile, which is to continue until the end of the year, after which only residual leaching is to go on.
  • Torex Gold Resources Inc. announced financial and operating results for the second quarter 2019. At El Limon-Guajes in Guerrero, 145.7 K tonnes per day (tpd) were moved, including 19,890 tpd of ore @ 2.91 gpt Au, with a recovery of 88% Au to produce 113,645 Oz Au at cash cost $605 and AISC $760. The Muckahi mining system is said to be on the way to demonstrate its efficacy by year end. Torex released a maiden underground mineral resource estimate for El Limon Deep of 797 K tonnes @ 5.52 gpt Au, containing 171 K Oz Au as an indicated mineral resource. The company had a cash balance of $131 M by the end of June.
  • Fortuna Silver Mines Inc. presented consolidated financial results for the second quarter 2019, including figures from its Mexican operations. At San Jose, Oaxaca, 271 K tonnes were milled at a rate of 3,045 tpd, grading 273 gpt Ag, 1.78 gpt Au, with a recovery of 91% Ag, 90% Au to produce 2.16 M Oz Ag, 13,204 Oz Au at cash cost $6.20 per Oz Ag and an AISC of $9.3 per Ag Oz. By the end of the period Fortuna held $77.2 M in cash and cash equivalents.
  • GoGold Resources Inc. reported second quarter results 2019. During the period GoGold produced 451 K Oz Ag from the Parral tailings. By the end of June the company had $9.0 M in cash and marketable securities and no debt.

ON FINANCING

  • Excellon Resources Inc. entered into an agreement with Cormark Securities Inc. as sole bookrunner and lead underwriter to buy units of the company for gross proceeds of approximately $10 M (Platosa, Durango).
  • Santacruz Silver Mining Ltd. granted 8.5 M stock options options to its directors, officers, employees, consultants and advisors (Veta Grande, Zacatecas; Rosario, San Luis Potosi).
  • Oroco Resource Corp. closed the first tranche of the previously announced non-brokered private placement for gross proceeds of $900 K (Santo Tomas, Sinaloa).
  • Impact Silver Corp. completed the first series of the third tranche of the non-brokered private placement previously announced and updated, receiving aggregate gross proceeds of $2.44 M. The company intends to complete a second series of the third tranche for gross proceeds of $554.2 K. Impact has paid $56 K to Infor Financial Inc. and $50 K to Canaccord Genuity Corp. as finders fee (Zacualpan, Estado de Mexico).

ON RESOURCES AND DEVELOPMENT

  • United States Antimony Corp. continues mining in two open pits at Los Juarez mine in Queretaro. At the Puerto Blanco mill in Guanajuato maintenance and improvements are being made to support increased production. At the Puerto Blanco leach circuit the plastic liner and fire assay equipment have been purchased. At the Madero smelter in Coahuila, The caustic leach plant has been tested and is operational to produce gold, silver, and antimony.
  • Hecla Mining Co. added new mineralization by drilling on the Middle and El Toro veins, potentially adding oxide mine life to San Sebastian, in Durango. Near-surface mineralisation has been defined by drilling for over 1,200 m along strike and 160 m of depth. Recent intercepts include 2.40 m @ 874 gpt Ag, 11.5 gpt Au; 1.50 m @ 398 gpt Ag, 1.86 gpt Au; 3.41 m @ 236 gpt Ag, 3.42 gpt Au. “Preliminary engineering studies have begun to evaluate the potential of both open pit and underground mining options at El Toro and drilling in this area is planned to continue through the third quarter.”
  • Orla Mining Ltd. filed a technical report on its Camino Rojo project, Zacatecas. The company previously released the results of the feasibility study (FS) for the oxide part of the mineralized body, which envisages the movement of 44 M tonnes @ 0.73 gpt Au, 14.2 gpt Ag to leach pads, and a recovery of 64% Au, 17% Ag.
  • VVC Exploration Corp. board of directors approved the start of a pilot mine on the Gloria Zones of its Northern Mexico Copper Project (Samalayuca) in Chihuahua. The plan envisions open pit mining and heap leach extraction by electrowinning (SX-EW) starting at 2 K tonnes per day (tpd) of mineralized material, scalable to 4 K tpd.
  • Minera Alamos Inc. received the approval of the environmental impact statement (Manifestación de Impacto Ambiental, or MIA) by SEMARNAT, the regulatory federal environmental agency, rendering the company with the key approvals for the construction of  commercial scale mining facilities at its Santana project in Sonora.
  • Goldplay Exploration Ltd. compiled all the exploration information supporting that its San Marcial project in Sinaloa has a strong precious metal potential, beyond the already defined resource. Five known areas over a 6 km trend include: Nava, with trench sampling of up to 24 m @ 2.1 gpt Au; Chachalaca Micuines, where several rock chip samples returned 1m @ 1.0 – 5.0 gpt Au, and up to 0.9 m @ 13.3 gpt Au; Guacamayo, with a trench interval returning 24 m @ 219 gpt Ag, 0.25 gpt Au; Resource area, on which recent assays of drill holes identified new gold mineralisation outside the resource, with true width intervals (tw) of 1.0 m @ 2.5 gpt Au, 8.4 m @ 0.7 gpt Au, 12 m @ 0.2 gpt Au; Faisanes, where recently a drill hole interval of tw 0.9 m @ 204.6 gpt Au.

ON DEALS AND CORPORATE ISSUES

  • Discovery Metals Corp. filed an early warning report in respect of its holdings in Levon Resources Ltd., now beneficially owns or controls 117.1 M Levon Shares, representing all of the issued and outstanding Levon Shares. Discovery did not own or control, directly or indirectly, any shares in Levon prior to the Arrangement. (Puerto Rico, Coahuila; Cordero, Chihuahua).
  • Tamino Minerals Inc. informed that “The company is not planning to complete a REVERSE SPLIT at this moment and is not in the company’s plans to do this.” Furthermore stating that “no dilution is guaranted” as its latest DTCC Share Position Report shows that the company has 149.8 M common shares in the float. The company is also working on preparing financial statements in order to remove the stop sign to become current on the OTC Markets (El Volcan, Sonora).
  • Minera Alamos Inc. reported the retirement from the Board of Directors of Mr. Chester Millar. Mr Millar (born 1927) was involved in multiple heap leach mining projects in Mexico for several decades, and is included in the Canadian Mining Hall of Fame since 2008 (Note by editor.- our sincere thanks and respect to Chester Millar for his contributions to the mining industry in Mexico).
  • Mako Mining Corp. informed gold production from the Trinidad mine in Sinaloa is nearing completion. Mining operations ceased at the end of March, and most of the crushing plant has been moved to another project in Nicaragua. The company has been unsuccessful in receiving any proceeds from the claim due to the damages sustained at La Trinidad from Hurricane Willa in October 2018, and legal actions have commenced against the insurer provider and their reinsurers. “Discussions are underway with the mining contractor for La Trinidad and the Mexican government regarding significant payables still outstanding at our Mexican subsidiary that holds La Trinidad”. Mako believes that the company has properly structured its Mexican subsidiary in a way that these liabilities do not extend outside of Mexico, whereby any proceeds from the sale of the equipment, or success in the insurance litigation, will be for the benefit of Mako. Discussions are proceeding with the mining contractor with the goal of reaching a mutually acceptable settlement. Finally, all other assets held in Mexico are to be sold or liquidated on due course (Note of editor.- From the outside, and with no further information other than what’s on the press release, the remarks on the isolation of the parent company from any litigation while leaving the country with debts outstanding are the kind of practices that make foreign companies easy targets for interest groups on any country. In short, please do not do that).
  • Chesapeake Gold Corp. has exercised an option to re-purchase a one percent (1.0%) net smelter returns royalty (NSR) on its Metates Au-Ag-Zn project, Durango. The NSR was purchased from Wheaton Precious Metals Co., a subsidiary of Wheaton Precious Metals Corp. for US$9.0 M.

ON SOCIAL RESPONSIBILITY

  • Argonaut Gold Inc. engaged in multiple community projects during the second quarter of 2019. Received the nationally awarded Environmental Socially Responsible Company recognition at the El Castillo Complex for the seventh consecutive year, and held an opening ceremony of a new plant nursery at San Agustin (also in Durango). At La Colorada (Sonora), San Juan del Rio (Durango) and San Antonio (Baja California Sur) hosted a Children’s Day celebration. At La Colorada (Sonora) assisted, in collaboration with the State of Sonora Secretariat of Education and Culture, with the rehabilitation of educational facilities and donated computers, as well as hosted a women’s community workshop in La Colorada. Finally, hosted a health and wellness community workshop in La Paz, Baja California Sur.

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

On the image below: quartz veinlets and quartz filed breccia in metamorphic rocks of a project in Oaxaca. Picture by Jorge Cirett

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

Cervantite crystals in jasperoids

By Miguel A Heredia

During the thirty one week of the year (July 29th to August 4th, 2019), at least 37 press releases were announced by companies working in Mexico, with twelve communicating production results, nine disclosing deals and corporate issues, six announcing financial rounds, five reporting on resources and development of their projects, two informing on exploration results, and one commenting on Mexican issues.   ON MEXICO ISSUES, Mexican president, Andres Manuel Lopez Obrador, declared that the mining sector will face several legislative and state government proposals to tighten environmental restrictions and raise taxes.   ON EXPLORATION, In Jalisco, GoGold released drilling results from four new holes at its Los Ricos project, and Silver Spruce confirmed high grade Au mineralization at its Cocula project. ON MINING, Alamos Gold, Americas Silver, Azure, Capstone, Consolidated Zinc, Excellon, Fresnillo, Leagold, McEwen, Newmont Goldcorp, Santacruz, and Starcore reported production and financial results from their Mexican mining operations. ON FINANCING, Avino, Chesapeake, Great Panther, Millrock, Sonoro and VVC announced financial rounds. ON RESOURCES AND DEVELOPMENT, Capstone provided an update on the development of its one-way ramp system at Cozamin mine in Zacatecas, to increase Cu output by the end of 2020. It also initiated a large in-fill drilling program to reserve conversion. Goldplay announced drilling results from the first hole drilled at the Faisanes target, adjacent to the western edge of its San Marcial NI43-101 resource in Sinaloa.  Pan American Silver announced results from the exploration drilling completed over the past three months at its La Colorada mine in Zacatecas. Silver Bull provided results from five new holes drilled to test possible extensions at depth to the main deposit at its Sierra Mojada project in Coahuila. Sonoro filed a technical report on its Cerro Caliche project in Sonora, to present an estimate of mineral resources. SSR Mining commented that is reviewing drill programs and engineering studies to identify additional zones and continuity of high-grade mineral resources at its Pitarrilla project in Durango. ON DEALS AND CORPORATE ISSUES, Starcore entered into an agreement covering the sale of its processing facility in Matehuala, San Luis Potosi. Aztec Minerals completed the terms of its earn-in and exercised its option to acquire 65% interest in the Cervantes project in Sonora.   Bacanora Lithium provided an update on the strategic investment by Ganfeng Lithium (Sonora Lithium project, Sonora).  Discovery Metals completed the acquisition of Levon Resources (Cordero project, Chihuahua).  One World Lithium announced the engagement of Montgomery and Associate to assist them as consultant on its Salar del Diablo project in Baja California Norte. Sierra Metals announced management changes (Bolivar mine, Chihuahua). Gold Resource declared July monthly dividend to its shareholders (El Aguila mine, Oaxaca). Peñoles stock sinked more than 10% in the Mexican Stock Exchange.

 ON MEXICO ISSUES

  • Mexican president Andres Manuel Lopez Obrador, declared that the mining sector will face several legislative and state government proposals to tighten environmental restrictions, raise taxes, regularize rights payments and give greater voice and vote to communities where companies have or intend to establish extraction projects. Fernando Alanis Ortega, president of CAMIMEX and general director of Industrias Peñoles commented that “there have been complicated initiatives that show a deep ignorance of what our sector is. It is important to have more executive work within the legislature to have a better coordination in the initiatives”.

ON EXPLORATION

  • GoGold Resources Inc., released drilling results of new four holes from the ongoing drilling program at its Los Ricos project in Jalisco. To date, 41 holes have been drilled for a total of 5,522m. Significant intersections were encountered in hole LRGG-19-18 (the deepest hole to intersect Los Ricos vein to date) with 21.4m of 0.81 g/t Au and 170 g/t Ag (3.08 g/t AuEq), including 12.9m of 1.24 g/t Au and 262 g/t Ag (4.74 g/t AuEq), including 7.5m of 1.78 g/t Au and 342 g/t Ag (6.35 g/t AuEq); hole LRGG-19-019 with 4.5m of 1.5 g/t Au and 197 g/t Ag (4.13 g/t AuEq, followed by 2.2m of open stope, to continue with 13.8m of 0.63 g/t Au and 86 g/t Ag (1.78 g/t AuEq), including 4.2m of 1.52 g/t Au and 198 g/t Ag (4.17 g/t AuEq); hole LRGG-19-020 with 14.9m of 1.78 g/t Au and 106 g/t Ag (3.2 g/t AuEq), including 7m of 3.48 g/t Au and 156 g/t Ag (5.55 g/t AuEq); and hole LRGG-19-021 with 7.5m of 0.09 g/t Au and 18 g/t Ag (0.33 g/t AuEq), followed by 6m of open stope, to continue with 15.6m of 1.15 g/t Au and 113 g/t Ag (2.67 g/t AuEq), including 6.5m of 2.38 g/t Au and 236 g/t Ag (5.54 g/t AuEq). GoGold plans to complete 10,000m of drilling at the property.
  • Silver Spruce Resources Inc., received results from a first set of fifteen RC drilling samples and from a second set of eight surface samples and four RC samples for due diligence purposes to confirm grades reported previously by Timmins Gold (now Alio Gold) at the advanced Au Cocula project in Jalisco. Re-assays showed a good correlation with those results reported previously by Timmins.

ON MINING

  • Alamos Gold Inc., presented production and financial results for the period Q2, 2019 from their Mulatos and Chanate mines in Sonora. At its Mulatos mine, the company processed 2,107,590 tonnes of 0.94 g/t Au to produce 36.3K Oz Au and sold 40.12K Oz Au. Sale cost per Oz Au produced was $725 for an AISC of $1,257 per Oz Au. At its Chanate mine (transitioned to residual leaching in October, 2018), Alamos produced 4,400 Oz Au and sold 4,376 Oz Au. Production cost was $1,234 USD per Oz Au for an AISC of $1,257 per Oz Au. The company expects to produce 150K-160K Oz Au at Mulatos mine and over 15K-25K Oz Au at El Chanate during 2019.
  • Americas Silver Corporation, announced Q2, 2019 production and operating cost results from its Cosala mine operation in Sinaloa. It processed 156,998 tonnes of 49 g/t Ag to produce 145.4K Oz Ag, 11.15M Lb Zn, and 4M Lb Pb (1.3M Oz AgEq), at a cash cost of $18.27 per Oz Ag and AISC of 11.66 per Oz Ag.
  • Azure Minerals Limited, reported that during Q2, 2019 over 1,200 tonnes of ore have been mined and stockpiled from its Oposura project in Sonora, with an estimated grade to be between 10-15% combined Zn+Pb. Ore will be processed under a toll treatment agreement through the nearby San Javier sulphide flotation processing facility. Ore transport will start in August and processing is expected to start in September.
  • Capstone Mining Corp., released production and financial results for the period Q2, 2019 from its Cozamine mine in Zacatecas. Capstone milled 284K tonnes of 1.48% Cu, 0.96% Zn, and 45 g/ton Ag to produce 8.72M Lb Cu, 3.84M Lb Zn, and 323K Oz Ag. Metallurgical recoveries were 94.1% for Cu, 64.2% for Zn, and 77.3% for Ag. Site operating cost was $47.71 per tonne milled, with cash cost of $1.06 per Lb Cu produced. The company reported revenue of $24.3M for an EBITDA of $9.3M.
  • Consolidated Zinc Limited, reported Q2, 2019 production and financial results from its Plomosas mine in Chihuahua. It mined 15,881 tonnes of 14.8% Zn, 6.7% Pb, and 35 g/t Ag, and processed 10,273 tonnes of 13.2% Zn, 4.7% Pb, and 35 g/t Ag, for a total of 3M Lb Zn, 1M Lb Pb, and 11.6K Oz Ag contained. From this total metal contained, only 1.3M Lb Zn, 334K Lb Pb, and 4KOz Ag was sold with cash cost of $0.78 per Lb Zn produced. 742 tonnes of Zn concentrate and 246 tonnes of Pb concentrate were stockpiled and will be available for sale at June 30, 2019.
  • Excellon Resources Inc., presented Q2 and H1, 2019 production and financial results from its La Platosa mine in Durango. It processed 19,964 tonnes of 514 g/t Ag, 5% Pb, and 7.4% Zn during Q2, 2019 for a total of 38,183 tonnes of 523 g/t Ag, 5% Pb, and 7.7% Zn in H1, 2019. Total production in Q2, 2019 was 276.8K Oz Ag, 1.8M Lb Pb, and 2.8M Lb Zn (583K Oz AgEq), for a total of 537.2 Oz Ag, 3.14M Lb Pb, and 4.5M Lb Zn (1M Oz AgEq) during the period H1, 2019. Excellon reported a production cost of $304 and $204 per tonne for Q2 and H1, 2019 respectively. Cash cost per Oz Ag produced was $9.18 and 10.06 for the periods Q2 and H1, 2019 respectively, with an AISC per Oz Ag payable of $16.89 and $19.82 respectively. The company had revenues for $8.67M and $13.85M for the periods Q2 and H1, 2019 respectively.
  • Fresnillo plc., announced consolidated production and financial results for the period H1, 2019 from their Mexican operations. Fresnillo produced 27.56M Oz Ag (including a Ag stream production of 1,548 Oz Ag), 432.4K Oz Au, 56.4M Lb Pb, and 95M Lb Zn. Adjusted revenue of USD $1,069M were reported with an EBITDA of USD $307.9M for a total profit for the period of USD$ 70.9M. The company also presented production results by mine for H1, 2019. At Fresnillo mine, Zacatecas, 1,194,199 tonnes were processed with grades of 187 g/t Ag, 0.86 g/t Au, 0.85% Pb, and 1.5% Zn for a total of 6.4M Oz Ag, 25K Oz Au, 19.6M Lb Pb, and 26.8M Lb Zn. At Saucito mine, Zacatecas, Fresnillo processed 1,327,673 tonnes of 243 g/t Ag, 1.14 g/t Au, 0.9%Pb, and 1.6% Zn to produce 8.8M Oz Ag, 36.7K Oz Au, 23.4M Lb Pb, and 33.7M Lb Zn. At its Pyrites Plant, it processed 87K tonnes of 305 g/t Ag and 2.31 g/t Au to produce 638K Oz Ag and 2,315 Oz Au. At Cienega mine in Durango, the company processed 650,107 tonnes of 1.55 g/t Au, 163 g/t Ag, 0.6% Pb, and 1% Zn to produce 29.7K Oz Au, 2.9M Oz Ag, 5.2M Lb Pb, and 8.6M Lb Zn. At the San Julian mine in Chihuahua-Durango border, Fresnillo processed 661,680 tonnes of 1.74 g/t Au and 120 g/t Ag from San Julian Veins to produce 35.3K Oz Au and 2.3M Oz Ag, while 1,107,875 tonnes were processed from the San Julian Disseminated Ore Body with grades of 0.08 g/t Au, 137 g/t Ag, 0.4% Pb, and 1.4% Zn, to produce 1,143 Oz Au, 4.2M Oz Ag, 8.1M Lb Pb, and 25.9M Lb Zn. Total production at San Julian was 36.4K Oz Au and 6.5M Oz Ag. At its Noche Buena mine in Sonora, the company processed 6,575,328 tonnes of 0.53 g/t Au and 0.2 g/t Ag to produce 65.4K Oz Au and 29K Oz Ag.
  • Leagold Mining Corporation, reported production and financial results from its Los Filos mine in Guerrero for the period Q2, 2019. Leagold reported Au production and sales for 44.9K Oz Au and 47K Oz Au respectively, at a cash cost of USD $853 per Oz Au sold and AISC of USD $978 per Oz Au sold for an associated revenue of USD $59.9M. Au production and sales were 108.9K Oz Au and 112.9K Oz Au respectively for the period H1, 2019, for revenue of USD $144.1M and AISC of USD $846 per Oz Au sold.
  • McEwen Mining Inc., announced production and financial results from its El Gallo mine in Sinaloa for the period Q2, 2019. The company produced 5.4K GEOs (Au Eq ounces) at cash cost of USD $967 per Oz Au and AISC of USD $989 per Oz Au produced. Total production in H1, 2019 reached 23K GEOs at cash cost of USD $724 per Oz Au and AISC of USD $776 per Oz Au produced.
  • Newmont Goldcorp Corporation, announced Q2, 2019 production and financial results from its Peñasquito mine in Zacatecas. It produced 165K GEOs, 245M Lb Zn, 180M Lb Pb, and 25M Oz Ag at cash cost of USD $820 per Oz Au and AISC of USD $1,095 per Oz Au produced.
  • Santacruz Silver Mining Ltd., presented Q2, 2019 production results from their Veta Grande mine in Zacatecas and El Rosario mine in San Luis Potosi. At Veta Grande mine, Zacatecas, it processed 37,156 tonnes of 101 g/t Ag, 0.21 g/t Au, 1.1% Pb, and 2.1% Zn, to produce 73K Oz Ag, 138 Oz Au, 826.5K Lb Pb, and 1.36M Lb Zn for a total of 240.2K Oz AgEq. At El Rosario mine in San Luis Potosi, the company processed 20,789 tonnes of 74 g/t Ag, 0.28 g/t Au, 0.4% Pb, and 2.1% Zn to produce 46.1K Oz Ag, 116 Oz Au, 194.9K Lb Pb, and 844.5K Lb Zn for a total of 133.1K Oz AgEq.
  • Starcore International Mines Ltd., reported year end dated April, 30, 2019 production and financial results from its San Martin mine in Queretaro. Starcore milled 301.9K tonnes with grades of 1.63 g/t Au and 86 g/t Ag with metallurgical recoveries of 86.2% and 58.4% respectively, to produce 13.7K Oz Au and 224.5K Oz Ag at an operating cost of USD $58 per tonne and USD $1,081 per Oz Au produced. Total revenues of CAD $32.8M were obtained, including CAD $5.7M of purchased concentrate processing revenue.

ON FINANCING

  • Avino Silver & Gold Mines Ltd., closed a bought deal financing for aggregate gross proceeds of CAD $6M. Net proceeds will be used to advance the exploration and development of its Avino mine in Durango.
  • Chesapeake Gold Corp., announced that it entered in a bought deal private placement financing for gross proceeds of $12M. In addition, Chesapeake also entered into a non-brokered private placement for gross proceeds of $3M (Metates project, Durango).
  • Great Panther Mining Limited, entered in a bought deal financing agreement for gross proceeds of approximately $15M. In addition, Great Panther granted an over-allotment option for gross proceeds of $2.25M (Topia mine, Durango).
  • Millrock Resources Inc., closed the first tranche of a non-brokered private placement for gross proceeds of $1M (Guadalcazar project, San Luis Potosi).
  • Sonoro Metals Corp., completed a non-brokered private placement for gross proceeds of $750K (Cerro Caliche project, Sonora).
  • VVC Exploration Corporation, announced a non-brokered private placement to intend to raise up to CAD $2.5M. Proceeds will be used to pay for exploration and development of its Samalayuca project in Chihuahua, land use permits and associated costs, metallurgical bench testing of copper mineralization, and proposed pilot mining investigation and evaluation process.

 ON RESOURCES AND DEVELOPMENT

  • Capstone Mining Corp., announced that the development of the one-way ramp system is on schedule for completion by the end of 2020, which is expected to increase copper output by 30% to between 40 to 45M Lb per annum. In addition, Cozamin initiated a large in-fill definition drilling program during the quarter that will target resource to reserve conversion to support a doubling of Cozamin’s mine life.
  • Goldplay Exploration Ltd., reported results from the first hole drilled at the Faisanes target, immediately adjacent to the western edge of its San Marcial NI43-101 resource in Sinaloa. Hole SM-19-01 intersected 1m of 204.6 g/t Au and defined a new Au mineralized zone close to surface. Goldplay is actively focused on surface and drilling exploration along the 600 m long Faisanes zone.
  • Pan American Silver Corp., provided results from the exploration drilling completed over the last three months at its la Colorada mine in Zacatecas. The drilling program covered an area of 600m by 300m and delineated skarn/manto zones that are still open laterally and at depth. Four drill rigs operating underground and three drill rigs on surface have completed 11,300m of infill and step-out drilling in the last three months, bringing the total meters drilled to date to 31,000m. Significant drill intersections were encountered in hole U-51-19 with 109 g/t Ag, 0.38% Cu, 1.7% Pb, and 3.8 % Zn over 114m, including 158g/t Ag, 0.59%Cu, 2.6% Pb, and 5% Zn over 58.2m ; hole  U-46-19 with 55 g/t Ag, 0.22% Cu, 3.8% Pb, and 6.6% Zn over 126m, including 74 g/t Ag, 0.44% Cu, 5.4% Pb, and 10.3% Zn over 32.9m; hole U-42-19 with 40 g/t Ag, 0.17% Cu, 1.2% Pb, and 2.8% Zn over 214.2m, including 75 g/t Ag, 0.33% Cu, 3.4% Pb, and 3.5% Zn over 38.3m; hole U-37-19 with 28 g/t Ag, 0.11% Cu, 1.9% Pb, and 3.9% Zn over 45.8m, including 36 g/t Ag, 0.08% Cu, 3.2% Pb, and 3.7% Zn over 18.1m; hole U-35-19 with 41 g/t Ag, 0.3% Cu, 0.9% Pb, and 4% Zn over 82.6m; hole U-29-19 with 67 g/t Ag, 0.23% Cu, 1.5% Pb, and 4.5% Zn over 18.8m; hole U-22.19 with 42 g/t Ag, 0.05% Cu, 0.8% Pb, and 3.9% Zn over 104.7m and 64 g/t Ag, 0.28% Cu, 2% Pb, and 5.8% Zn over 15.1m. Pan American plans to complete 50,000m of drilling and review 12,000 km magnetotellurics geophysics survey to better define the skarn footprint limits.
  • Silver Bull Resources Inc., provided results from five holes drilled to test possible extensions at depth of its Sierra Mojada deposit in Coahuila. Significant intersections were encountered in hole B19005 with 9% Zn, 2.1% Pb, and 16 g/t Ag over 13.25m of massive sulphide mineralization, including 11.9% Zn, 2.8% Pb, and 24 g/t Ag over 5.85m: hole B19004 with 8.1%Zn, 1.8% Pb, and 27 g/t Ag over 46.23m, including 8.1% Zn, 1.8% Pb, and 27 g/t Ag over 0.87m: hole B19006 with 7.2% Zn, 1.2% Pb, 195 g/t Ag, and 0.13% Cu over 0.85m. These drill holes are part of an 8,000m surface drilling program to test extensions of the main deposit at Sierra Mojada, Coahuila.
  • Sonoro Metals Corp., filed a NI43-101 technical report on its Cerro Caliche project in Sonora in which reported inferred resources of 11,470,000 tonnes of 0.49 g/t Au and 4 g/t Ag (or 0.55 g/t AuEq) to contain a total of 183K Oz Au and 1.6M Oz Ag (or 201K Oz AuEq). “The estimate of mineral resources is based on a total of 21,091 meters of RC drilling in 200 holes. Of these, 10,328m in 96 holes were drilled by Sonoro, plus 7,725m in 86 holes were drilled by Corex Gold and 3,038m in 18 holes were drilled by Paget Southern, both previous operators of the Cerro Caliche project”.
  • SSR Mining Inc, informed that is reviewing drill programs and engineering studies to identify additional zones and continuity of high-grade mineral resources at its Pitarrilla project in Durango. It is also evaluating contractors to extend the existing underground access and drill these areas.

 ON DEALS AND CORPORATE ISSUES

  • Starcore International Mines Ltd., entered in an agreement to cover the sale of its subsidiary Altiplano Goldsilver SA de CV, which owns the processing facility in Matehuala, San Luis Potosi. Terms of the transaction includes a deposit of USD $0.5M; a payment of USD $0.5M on August 31, 2019; a payment of USD $200K on November 30, 2019; a payment of USD $200K on February 28, 2020; and a final payment of USD $200K on May 31, 2020. In addition, Starcore informed that reduced its staff by 125 people at its San Martin mine in Queretaro. It will incur in severance cost of USD $600K related to the staff reduction.
  • Aztec Minerals Corp., completed the terms of its ear-in and exercised its option to acquire 65% interest in the Cervantes project in Sonora from Kootenay Silver Inc. Both companies expect to finalize the terms of the JV agreement shortly and form a management committee to review the exploration results to date and approve the next exploration program and budget at Cervantes.
  • Bacanora Lithium plc., provided an updated on the strategic investment by Ganfeng Lithium (GFL) to participate at the Sonora Lithium operation. GFL will acquire 29.99% of Bacanora, and 22.5% of the Sonora Lithium project in Sonora.
  • Discovery Metals Corp., completed the acquisition of Levon Resources Ltd. Based on the agreement, the shareholders of Levon received 0.55% of a common share of Discovery. “Effective on the closing of the Arrangement, there were approximately 168M Discovery shares issued and outstanding (including the conversion of the Subscription Receipts, as described below, and the issuance of 64,412,929 Discovery Shares issued to Levon shareholders pursuant to the Arrangement), and Discovery’s market capitalization is approximately $66M, based on Discovery’s closing price on the TSX Venture Exchange on August 1, 2019”.
  • One World Lithium Inc., announced the engagement of Montgomery and Associates to consult with the company on its exploration program at its Salar del Diablo project in Baja California Norte.
  • Sierra Metals Inc., announced management changes after the departure of its COO (Bolivar mine, Chihuahua).
  • Torex Gold Resources Inc., amended and restated a USD $400M debt facility with bank institutions.  This debt facility is comprised of USD $185M term loan, and USD $150M revolving loan facility. All conditions precedent to the initial advance under the debt have been satisfied as of July 30, 2019, and at that date, the full amount of the term facility and USD $100M of the revolving facility is outstanding ( El Limon-Guajes Mining Complex, Guerrero).
  • Gold Resource Corporation, declared July monthly dividend of 1/6 of a cent per common share to its shareholders (El Aguila mine, Oaxaca).
  • Industrias Peñoles SA de CV, informed that its stock plummeted 58 % in the Mexican Stock Exchange after reporting losses in Q2, 2019 due to the fall of metal prices and production cost increase. The company’s operating flow collapsed 58.4% in said period 2019 against the same period of 2018. Metal operations showed a decrease in volumes: Pb production fell 13.8%, Au 8.8 %, and Ag 4.5%. The exception was Zn, where production grew 15.1%.

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, cervantite crystals after stibnite in jasperoids in a prospect in Durango, Mexico.  Photo by Miguel A Heredia.

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

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By Jorge Cirett

During the 30th week of the year (July 22nd to July 28th, 2019), at least 29 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, the Chihuahua government announced the Los Gatos mine is about to start production in the municipality of Satevó, and stated that the mining industry is of uttermost importance in the State, with 44 companies (80% Canadian) providing 12,300 well-paid jobs. ON EXPLORATION, In Sonora, Evrim released drill results from its Sarape project. ON MINING, Excellon, Mexus Gold and Great Panther presented production or financial results. Azure commenced open-pit mining at its Oposura project in Sonora. ON FINANCING, In a great week for the resource companies sector, Impact Silver, Golden Minerals, Americas Silver, SilverCrest Metals, Mako Mining, Southern Silver, Avino Silver, Discovery Metals and Oroco announced financing rounds for combined tens of millions of dollars, with several of those placements having been increased after the opening. Silver One Resources granted options to its personnel and consultants. Defiance Silver entered into a $200 K loan with one of its officers. Mexus Gold US paid a $105 K loan. Capstone Mining extended and amended its US$300 million corporate revolving credit facility.  ON RESOURCES AND DEVELOPMENT, Avino Silver released results from holes previously drilled testing the Avino system stockwork hanging-wall. GoGold released results from four more holes at its Los Ricos project in Jalisco. ON DEALS AND CORPORATE ISSUES, Prize Mining intends to change its name to Boundary Gold and Copper Mining. One World Lithium issued a technical clarification on its previous press release on drilling at its Salar del Diablo project in Baja California. Discovery Metals received conditional approval for the plan of arrangement with Levon Resources for the combination of its businesses, and Levon shareholders approved the said plan of arrangement.

ON MEXICO ISSUES

  • The Secretariat on Innovation and economic Development of Chihuahua announced that a new mining project is about to start operations in the state: Los Gatos, in San Jose del Sitio, Satevó, with a US$316 M investment by Sunshine Silver and Dowa Holdings Co. Ltd. from Japan, that is to create more than 350 jobs. Other mining operations in the state include Pan American Silver’s Dolores mine in Madera, where 850 persons work, and Coeur’s Palmarejo mine with 800 workers. Chihuahua has 14 big mining operations, with 44 companies exploring in the state (80% Canadian companies) that generate 12,300 direct jobs with salaries that are 190% above the State average.

ON EXPLORATION

  • Evrim Resources Corp. released drill results from the 2019 maiden drill program at the Sarape project in Sonora. The 2,390 m ten hole program covered a 380 m strike length along the Sarape (6 km long), La Nune and Chiltepin veins. Highlighted results include 0.25 m @ 1.48 gpt Au, 20 gpt Ag; 8.47 m @ 0.33 gpt Au, 8 gpt Ag; 7.55 m @ 0.19 gpt Au, 11 gpt Ag; 24.68 m @ 0.18 gpt Au, 9 gpt Ag (including 1.4 m @ 0.55 gpt Au, 31 gpt Ag); 1.47 m @ 0.31 gpt Au, 21 gpt Ag; 1.46 m @ 0.80 gpt Au, 34 gpt Ag; 3.15 m @ 0.26 gpt Au, 10 gpt Ag; 11.57 m @ 0.22 gpt Au, 5 gpt Ag.

ON MINING

  • Excellon Resources Inc. announced second quarter 2019 production results from its Platosa mine, Durango. At the site 18,717 tonnes were mined, 19,964 tonnes processed @ 514 gpt Ag, 4.97% Pb, 7.40% Zn, recovering 90.6% Ag, 83.6% Pb, 79.6% Zn to produce 276.8 K Oz Ag, 1.76 M Lb Pb, 2.5 M Lb Zn. “.. the operation accessed multiple ore faces in the Rodilla, Pierna, 623 and Guadalupe South mantos. Operational efficiencies implemented in previous quarters continued to deliver results with lower dilution, higher grades and steady production rates”.
  • Mexus Gold US. informed that leaching from its 2,500 ton leach pad is returning solution to the holding pond at its Santa Elena mine in Sonora (not to mistake for First Majestic’s Santa Elena mine, also in Sonora). “It is expected to accumulate 5 to 7 oz. the first week with leaching continuing until the return solution stabilizes. Mexus will be adding new ore to the pad with the Merrill Crow gold recovery system running weekly to keep up with production.”
  • Great Panther Mining Ltd. reported financial results for the second quarter 2019. Most of the report is focused on the operation of the company’s recently acquired Tucano mine in Brazil, and not much is disclosed about its Mexican operations, other than the production of 10,023 Oz AuEq. At the end of the period cash and short-term deposits were $9.9 M (Topia, Durango).
  • Capstone Mining Corp. extended and amended its US$300 million corporate revolving credit facility with Canadian Imperial Bank of Commerce (CBIC) and Bank of Nova Scotia. “In the quarter ending June 30, 2019, Capstone paid an additional $20 million towards long-term debt , bringing the total deleveraging payments to $129 million over the last ten fiscal quarters, and the total long-term debt balance to $199.9 million” (Cozamin, Zacatecas).
  • Azure Minerals Ltd. commenced mining at its Oposura project in Sonora. Ore grading 10-15% Pb-Zn is being open-pit mined at a rate of 1,500-3,000 tonnes per month on the East-Zone, where all material being mined is classified as indicated mineral resources. “Processing of this ore is expected to commence in September under a toll treatment agreement with a third-party sulphide flotation processing plant”.

ON FINANCING

  • Silver One Resources Inc. granted 2.43 M stock options to its directors, officers, consultants and advisors (La Frazada, Nayarit).
  • Impact Silver Corp. amended the terms of its ongoing non-brokered private placement financing due to strong interest. Under the actual terms, Impact has closed a first tranche for gross proceeds of $1.235 M and expects to close a second tranche for additional $714 K. Under the modified terms a third tranche has been added seeking to raise additional $3 M (Zacualpan District, Estado de Mexico).
  • Impact Silver Corp. completed the second tranche of the previously announced non-brokered private placement, receiving aggregate gross proceeds of $714.3 K (Zacualpan District, Estado de Mexico).
  • Golden Minerals Co. closed the direct offering previously announced, for gross proceeds $2.25 M (Rodeo, Durango).
  • Americas Silver Corp. announced that Eric Sprott purchased shares of the company for a total of US$10 M in a non-brokered private placement, increasing its ownership to above 8% (Cosalá, Sinaloa).
  • SilverCrest Metals Inc. entered into an agreement with a syndicate of underwriters for the purchase of shares with gross proceeds of C$22.0 M, with the company paying the underwriters a cash commission of up to 5% of the gross proceeds. SSR Mining elected to exercise its right to maintain its pro rata ownership of up to 9.9% (Las Chispas, Sonora).
  • Defiance Silver Corp. “entered into a loan agreement with an entity controlled by one of its officers and directors which allows Defiance to borrow up to $200,000. The Loan is unsecured and will bear interest at the rate of 1% per month, accrued daily. It will mature on July 22, 2020”(San Acacio, Zacatecas).
  • Mako Mining Corp. announced the completion of the previously announced rights offering, raising total aggregate gross proceeds of $27 M.
  • Mexus Gold US. informed that the company has satisfied a $105 K loan commitment on time (Santa Elena, Sonora).
  • Southern Silver Exploration Corp. announced its previously announced $2M non-brokered private placement has been increased to $3 M (Cerro Las Minitas, Durango).
  • Avino Silver & Gold Mines Ltd. entered into an agreement with Cantor Fitzgerald Canada Corp. as sole underwriter to the purchase of common shares of the company for gross proceeds of $4M and additional flow-through common shares for additional gross proceeds of $2 M (Avino, Durango).
  • Discovery Metals Corp. closed its non-brokered private placement, raising $ 9.0 M. Mr Eric Sprott acquired 17.56 M shares, and as a result he’s now the owner of 19.9% of Discovery’s issued and outstanding common shares. Finders’ fees of $17,500 were paid (Puerto Rico, Coahuila; Cordero, Chihuahua).
  • Oroco Resource Corp. announced a non-brokered private placement to raise $1.35 M (Santo Tomas, Sinaloa).
  • Americas Silver Corp. closed its previously announced non-brokered private placement with Mr. Eric Sprott, raising gross proceeds of US$10 M.
  • Capstone Mining Corp. extended and amended its US$300 million corporate revolving credit facility with Canadian Imperial Bank of Commerce (CBIC) and Bank of Nova Scotia. “In the quarter ending June 30, 2019, Capstone paid an additional $20 million towards long-term debt , bringing the total deleveraging payments to $129 million over the last ten fiscal quarters, and the total long-term debt balance to $199.9 million” (Cozamin, Zacatecas).

ON RESOURCES AND DEVELOPMENT

  • Avino Silver & Gold Mines Ltd. released results from a sampling campaign comprising 52 recent and historic holes that were previously drilled on the hanging-wall of the Avino stockwork system of its Avino property in Durango. Some of the results released: 3.05 m @ 1.31 gpt Au, 24 gpt Ag, 0.02% Cu; 4.30 m @ 1.47 gpt Au, 71 gpt Ag, 0.49% Cu; 2.20 m @ 5.00 gpt Au, 120 gpt Ag, 0.13% Cu; 16.00 m @ 2.06 gpt Au, 67 gpt Ag, 0.69% Cu; 2.95 m @ 1.50 gpt Au, 31 gpt Ag, 0.47% Cu; 1.25 m @ 3.27 gpt Au, 10 gpt Ag, 0.11% Cu; 2.00 m @ 15.60 gpt Au, 146 gpt Ag, 0.28% Cu; 4.10 m @ 3.82 gpt Au, 103 gpt Ag, 0.23% Cu; 5.45 m @ 1.26 gpt Au, 133 gpt Ag, 0.07% Cu; 9.50 m @ 1.82 gpt Au, 119 gpt Ag, 0.50% Cu; 5.95 m @ 2.29 gpt Au, 232 gpt Ag, 0.30% Cu; 4.90 m @ 5.36 gpt Au, 26 gpt Ag, 0.07% Cu; 8.43 m @ 2.16 gpt Au, 21 gpt Ag, 0.15% Cu.
  • GoGold Resources Inc. delivered assays results from four more holes at its Los Ricos project in Jalisco. Highlighted intervals comprise: 21.4 m @ 0.81 gpt Au, 170 gpt Ag (including 12.9 m @ 1.24 gpt Au, 262 gpt Ag which includes 7.5 m @ 1.78 gpt Au, 342 gpt Ag) in one hole; 4.5 m @ 1.50 gpt Au, 197 gpt Ag, then stope, then 13.8 m @ 0.63 gpt Au, 86 gpt Ag) in another hole; 14.9 m @ 1.78 gpt Au, 106 gpt Ag in a third one and 7.5 m @ 0.09 gpt Au, 18 gpt Ag, then 2.2 m of open stope, then 15.6 m @ 1.15 gpt Au, 113 gpt Ag (including 6.5 m @ 2.38 gpt Au, 236 gpt Ag. The first hole of this release is the deepest so far to intersect the Los Ricos vein.

ON DEALS AND CORPORATE ISSUES

  • Prize Mining Corp. announced its shareholders will be asked in August 22 to approve the continuation of the company into the jurisdiction of Britsh Columbia, the consolidation of its shares on a 5 to one basis and the name change of the company to Boundary Gold and Copper Mining Ltd. (Manto Negro, Coahuila).
  • Discovery Metals Inc. has received conditional approval from the TSX Venture Exchange to complete the transaction with Levon Resources Ltd. for the combination of their businesses (Puerto Rico, Coahuila; Cordero, Chihuahua).
  • One World Lithium Inc. issued a technical clarification as a result of a review by the British Columbia Securities Commission about a previous news release on drilling results at its Salar del Diablo project in Baja California. The company had three distinct target levels at several zones, but drilling encountered harsh conditions due to the natural variability of the unconsolidated basin sediments. “Dense mudstones were interlayered with unconsolidated, water- and brinebearing sands. Drill bits and related equipment were commonly plugged by the mudstones, requiring multiple trips out of the hole to clean and unplug the drill bits. Unconsolidated sands poured or sloughed into the drill bore, requiring substantial time to stabilize the drill hole before drilling to additional depths. Some measure of control was established by drilling and setting casing at deeper levels, but high amounts of water impeded the progress of the drill…..”
  •  Discovery Metals Inc. announced a majority of Levon Resource Ltd’s shareholders approved the plan of arrangement for the combination of businesses (Puerto Rico, Coahuila, Cordero, 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: sheeted quartz veinlets and minor stockwork development in metamorphic rocks of a project in Oaxaca. Picture by Jorge Cirett

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

Boiling texture in a quartz chalcedonic vein

By Miguel A Heredia

During the twenty seven week of the year (July 15th to July 7th, 2019), at least 27 press releases were announced by companies working in Mexico, with ten communicating production results, seven disclosing deals and corporate issues, six announcing financial rounds, two reporting on resources and development of their projects,  and two informing on exploration results.  ON MEXICO ISSUES, no relevant news.  ON EXPLORATION, In Chihuahua, Silver Spruce secured drill pads to commence phase 1 drill program at its Pino de Plata project. In Oaxaca, Megastar identified multiple targets at its Yautepec property. ON MINING, Avino, Consolidated Zinc, First Majestic, Fortuna Silver, Fresnillo, Gold Resource, Hecla, McEwen, Premier, and Sierra Metals reported Q2, 2019 production results from their Mexican operations. ON FINANCING, Americas Silver announced a non-brokered private placement for gross proceeds of approximately US$10M (Cosala, Sinaloa). It also announced the termination of the agreement with Premier Gold on the San Felipe project in Sonora for total sales proceeds of US$10.8M. Discovery Metals announced its intentions to complete a non-brokered private placement to rise gross proceeds of $9M (Puerto Rico project, Coahuila). Golden Minerals entered in definitive agreements to rise gross proceeds of $2.25M (Santa Maria project, Chihuahua). Mexican Gold closed a non-brokered private placement for gross proceeds of $4M (Las Minas project, Veracruz). Orla Mining rised $3.6M through early warrant exercise incentive program (Camino Rojo project, Zacatecas). Silver Spruce received a final payment of $150K for the sale of its Kay Mine project to Croesus. Silver Spruce received and accepted an unsolicited cash investment offer of USD $250K (Pino de Plata project, Chihuahua). ON RESOURCES AND DEVELOPMENT, Endeavour acquired two mineral properties adjacent to its Guanacevi mine in Durango. SilverCrest received the operating permit from SEMARNAT for the development of its Las Chispas project in Sonora. ON DEALS AND CORPORATE ISSUES, Silver Spruce announced the acquisition of the Cocula advanced Au project in Jalisco. Excellon, Great Panther, Mexican Gold, and Prize announced management changes.  Mexican Gold, Prize, and Minera Alamos granted stock options to Directors, Officers, Employees, and Consultants.

 ON MEXICO ISSUES

  • No relevant news.

ON EXPLORATION

  • Silver Spruce Resources Inc., secured drill pads to commence phase 1 drill program at its Pino de Plata project in Chihuahua. The surface landowners have granted surface access and signed the drill permit application.
  • Megastar Development Corp., identified multiple targets at its Yautepec property in Oaxaca. The property lies within the known Oaxaca Au-Ag epithermal trend that hosts the San Jose Mine owns by Fortuna Silver, and the Arista-Switchback mine owned by Gold Resource. Results from the first 146 rock-chip samples were received. Significant results are: 6 samples with > 10 ppm Ag (maximum value of 62 ppm Ag); 9 samples with > 100 ppb Au (maximum value of 0.86 ppm Au);   5 samples with > 100 ppm Cu (maximum value of 639 ppm Cu); 6 samples with > 100 ppm Pb (maximum value of 863 ppm Pb); 10 samples with > 100 ppm Zn (maximum value of 215 ppm Zn; 8 samples with > 100 ppm Mo (maximum value of 648 ppm Mo); 12 samples with > 1,000 ppm As (maximum value of 6,290 ppm As); 9 samples with > 1,000 ppm Ba (maximum value of 4,590 ppm Ba); and 12 samples with > 1 ppm Hg (maximum value of 7.8 ppm Hg). These anomalous values are from quartz veins, silicified breccias and siliceous sinter deposits in multiple areas along a north-northwest striking 8.4km trend of prospective rocks that trace a volcanic caldera margin. An additional 175 rock-chip samples have been submitted to the lab and results will be announced in subsequent new releases.

ON MINING

  • Avino Silver & Gold Mines Ltd., reported Q2, 2019 consolidated production results from its Avino mine operation in Durango. It processed 200,873 tonnes of 57 g/t Ag, 0.41 g/t Au, and 0.38%Cu to produce 246K Oz Ag, 1,609 Oz Au, and 1.14M Lb Cu. Metallurgical recoveries were 69%, 61% and 63% for Ag, Au, and Cu respectively.
  • Consolidated Zinc Limited, reported June 2019 production results from its Plomosas mine in Chihuahua. It mined 5,099 tonnes of 17.5% Zn, 11.2% Pb, and 62 g/t Ag for a total of 2M Lb Zn, 1.3M Lb Pb, and 10.2K Oz Ag contained. From this tonnage, only 2,409 tonnes were processed but additional stockpiles of 6,599 tonnes remain in mine site awaiting be delivered to the Aldama plant.
  • First Majestic Silver Corp., announced Q2, 2019 production results from their Mexican operations. The below table shows the mine by mine production results:

 

  • Fortuna Silver Mines Inc., released Q2, 2019 production results from its San Jose mine in Oaxaca. Fortuna processed 271,016 tonnes of 273 g/t Ag and 1.68 g/t Au to produce 2.2M Oz Ag and 13.2K Oz Au, with metallurgical recoveries of 90.76% and 90.23% respectively.
  • Fresnillo plc., reported Q2, 2019 consolidated production results from their Mexican operations. The company produced 14.42M Oz Ag (including Silverstream), 221.3K Oz Au, 29.2M Lb Pb, and 46.3M Lb Zn. The production results by mine are as follow: At the Fresnillo mine in Zacatecas, 618,852 tonnes with grades of 192 g/t Ag, 0.9 g/t Au, 1% Pb, and 1.6% Zn were processed to produce 3.5M Oz Ag, 13.5K Oz Au, 11.7M Lb Pb, and 15M Lb Zn. At the Saucito mine in Zacatecas, 662,023 tonnes were processed with grades of 242 g/t Ag, 1.15 g/t Au, 0.8% Pb, and 1.3% Zn to produce 4.5M Oz Ag, 18K Oz Au, 10.2M Lb Pb, and 13.31M Lb Zn. At the Piritas Plant in Zacatecas, 39,159 tonnes were processed with grades of 352 g/t Ag and 2.57g/t Au to produce 333K Oz Ag and 1,215 Oz Au. At the La Cienega mine in Durango, the company processed 329,117 tonnes with grades of 1.57 g/t Au, 162 g/t Ag, 0.6% Pb, and 1.1% Zn to produce 15K Oz Au, 1.5M Oz Ag, 3M Lb Pb, and 4.8M Lb Zn. At the San Julian mine in Chihuahua-Durango border, Fresnillo processed 338,797 tonnes of 1.71 g/t Au and 124 g/t Ag from San Julian Veins to produce 17.7K Oz Au and 1.2M Oz Ag, while 562,534 tonnes were processed from the San Julian Disseminated Ore Body with grades of 0.08 g/t Au, 149 g/t Ag, 0.4% Pb, and 1.4% Zn, to produce 636 Oz Au, 2.3M Oz Ag, 4.2M Lb Pb, and 13.3M Lb Zn. Total production at San Julian was 18.3K Oz Au and 3.6M Oz Ag. At its Herradura mine in Sonora, the company processed 5,466,791 tonnes of 0.84 g/t Au and 2.5 g/t Ag to produce 120K Oz Au and 280K Oz Ag. At the Noche Buena mine in Sonora, Fresnillo processed 3,663,549 tonnes of 0.56 g/t Au and 0.22 g/t Ag,  to produce 35.3K Oz Au and 17K Oz Ag.
  • Gold Resource Corporation, released production results from its Oaxaca Mining Unit for the period Q2, 2019. It produced 7,881 Oz Au, 466.5K Oz Ag, 1.1M Lb Cu, 5.2M Lb Pb, and 13.6M Lb Zn.
  • Hecla Mining Company, reported Q2, 2019 production results from its San Sebastian mine in Durango. The company produced 0.5M Oz Ag and 3,547 Oz Au.
  • McEwen Mining Inc., announced that 5,340 Oz Au were produced at its El Gallo mine in Sinaloa during the period Q2, 2019.
  • Premier Gold Mines Limited, reported that a total of 15.5K Oz Au and 56.5K Oz Ag were produced from its Mercedes mine in Sonora during Q2, 2019.
  • Sierra Metals Inc., released Q2, 2019 production results from their Mexican operations. At Its Bolivar mine in Chihuahua, Sierra Metals processed 326,208 tonnes of 0.86% Cu, 18 g/t Ag, and 0.24 g/t Au to produce 5.2M Lb Cu, 152K Oz Ag, and 1,586 Oz Au. At its Cusi mine in Chihuahua, the company processed 82,117 tonnes of 1|45 g/t Ag, 0.15 g/t Au, and 0.1% Pb to produce 283K Oz Ag, 146 Oz Au, and 154K Lb Pb.

ON FINANCING

  • Americas Silver Corporation, announced that Eric Sprott has agreed to purchase common shares of the company for a total investment of approximately US$10M in a non-brokered private placement (Cosala, Sinaloa). It also announced the termination of the agreement with Premier Gold on the San Felipe project in Sonora for total sales proceeds of US$10.8M.
  • Discovery Metals Corp., announced its intentions to complete a non brokered private placement to raise gross proceeds of $9M, of which Eric Sprott has agreed to purchase 19.9% of the company by investing $7.7M. Discovery plans to acquire all the issued and outstanding common shares of Levon Resources Ltd., as announced in a news release dated May 30, 2019. Gross proceeds will be used to continue exploration at Cordero, Chihuahua, following the acquisition of Levon, and at the Coahuila projects (Puerto Rico, Minerva, and Monclova).
  • Golden Minerals Company, entered in definitive agreements with institutional investors for an offering of shares of common stock with gross proceeds of $2.25M (Santa Maria project, Chihuahua).
  • Mexican Gold Corp., closed a non-brokered private placement for gross proceeds of $4M. Net proceeds will be used for exploration and advancement of its Las Minas project in Veracruz.
  • Orla Mining Ltd., rised $3.6M through an early warrant exercise incentive program rised $3.6M. Net proceeds will be used to continue regional exploration and allow greater flexibility prior to construction of its Camino Rojo Oxide project in Zacatecas.
  • Silver Spruce Resources Inc., received a final payment of $150K for Croesus Gold Corp., for the sale of its Kay Mine project. Some of the net proceeds will be used to fund the due diligence program at its advanced Cocula gold project in Jalisco. The company also received and accepted an unsolicited cash investment offer of USD $250K to purchase 5% interest of Silver Spruce Resources de Mexico SA de CV, the Mexican subsidiary of Silver Spruce, and 5% interest in the mining titles for each of the four mining concession that comprise its Pino de Plata project in Chihuahua. The offer was done before the commencement of the phase 1 drill program.

ON RESOURCES AND DEVELOPMENT

  •  Endeavour Silver Corp., acquired a 10 years rights to explore and exploit two mineral properties adjacent to its Guanacevi mine in Durango from a subsidiary of Minera Frisco SAB de CV. The El Porvenir property of 15 Ha covers the up dip extension of the El Porvenir Norte orebody, and The El Curso property of 40 Ha that covers any possible northwest extension of the El Porvenir Cuatro orebody, which was the highest grade mine in the district. Endeavour agreed to meet certain minimum production targets from the properties and pay Frisco a fixed per tonne production payment plus a floating NSR based on the spot Ag price.
  • SilverCrest Metals Inc., received from SEMARNAT the approval of the MIA or operating permit for the development of its Las Chispas project in Sonora. The receipt of the MIA provides the company to construct a 3,000 tonnes per day underground mine and a conventional processing facility with subsequent dry stack tailings and underground backfill for Las Chispas. The MIA remains in good standing for 14 years until July 17, 2033.

 ON DEALS AND CORPORATE ISSUES

  • Silver Spruce Resources Inc., acquired 100% interest in the Cocula advanced Au project in Jalisco from Prospeccion y Desarrollo Minero del Norte SA de CV (ProDeMin), which in turn, has an option agreement from the owners to acquire 100% interest in the Cocula project. Terms of the acquisition include a USD$160K due within two years of assumption of the ProDeMin contract; USD$330K due within year three; and USD$2.5M due within year four. ProDeMin has to negotiate with the owners to delay payments and to accept cash and company shares as payment. The owners also have retained a 2% NSR which is capped at USD$1.5M and of which 1% can be purchased for USD$500K. Minimum work expenditure include USD$250K in the first two years and USD$500K within the following two years. Silver Spruce has also agreed to reimburse ProDeMin USD$125K over two years for its previous option payments made to the owners, upon completion of the Company’s financing requirements, and to issue 3M of the Company’s common shares to ProDeMin over four years.
  • Excellon Resources Inc., announced the appointment of its CFO and VP Corporate Development (La Platosa, Durango).
  • Great Panther Mining Limited, announced the appointment of the Chair of the Board of Directors of the company (Topia mine, Durango).
  • Mexican Gold Corp., announced the resignation of its COO and one Director, and the appointment of a new member to its Board of Directors. The company also granted stock options to Directors, Officers, and Consultants of the company (Las Minas, Veracruz).
  • Prize Mining Corporation appointed as new Director to the Board of the company. It also granted stock options to Directors, Officers, Employees, and Consultants of the company (Manto Negro project, Coahuila).
  • Minera Alamos Inc., granted stock options to Managements, Directors, Employees, and Consultants of the company (Santana project, Sonora).

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

On the picture above, boiling texture in a low-sulphidation epithermal chalcedonic quartz vein in a prospect in Durango, Mexico.  Photo by Miguel A Heredia.

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

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By Jorge Cirett

During the 28th week of the year (July 8th to July 14th, 2019), at least 27 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, Camimex announced investments for US$2,705 M on new gold projects from 2019 to 2024. The same organism informed Mexico’s gold production declined 6.7% between 2017 and 2018. ON EXPLORATION, In Baja California, One World Lithium released results from drilling at Salar del Diablo. In Sonora, Magna Gold started its phase one exploration program at its Mercedes project on the Santa Rosa de Yecora district. In Chihuahua, Sable Resources received the drilling permit for its Vinata project. In Coahuila, Discovery Metals received the drilling permit for its Monclova project. In Guanajuato, Fresnillo explores near Mineral de La Luz. ON MINING, Torex Gold, Coeur Mining, Great Panther, GoGold Resources and Endeavour Silver presented production results for the second quarter of 2019. ON FINANCING, Mexican Gold Corp, Impact Silver, One World Lithium, Oceanus Resources, Silver One Resources, Advance Gold and Millrock undertook or completed tranches of financing rounds for a combined $13.45 M. Evrim Resources granted 1 M stock options to an officer. ON RESOURCES AND DEVELOPMENT, SilverCrest Metals filed the PEA on Las Chispas, Sonora. VVC Exploration received the environmental permit  and a land use change permit for its Samalayuca project in Chihuahua. SilverCrest Metals released high grade results from underground sampling of the Babicanora vein at Las Chispas, Sonora. Goldplay released good gold results from trenching on an extension of the Nava zone on its San Marcial project in Sinaloa. ON DEALS AND CORPORATE ISSUES, Orex Minerals and Pan American Silver entered into an agreement to negotiate a formal JV agreement on the Sandra Escobar project in Durango. Oroco Resources signed a letter of agreement to acquire the 766 ha. Rossy concession adjacent to Oroco’s land package on the Santo Tomas district in Sinaloa.

ON MEXICO ISSUES

  • Camimex (Cámara Minera de México), informed on a list of new gold producing projects that involve the investment of US$2,705 M between 2019 and 2024. Among the biggest investments are those of Torex Gold (US$482 M) in Media Luna, Guerrero; Grupo Mexico’s (US$413 M) Buenavista Zinc in Sonora and Fresnillo’s (US$350 M) Orisyvo in Chihuahua. Other investments include the second dynamic leaching plant at La Herradura; the Pyrites plant in Fresnillo; Goldcorp’s Pyrite plant in Peñasquito, Zacatecas; and Endeavour’s El Compas in Zacatecas; Candelaria Mining is to start operations at Pinos, Zacatecas; Mag Silver and Fresnillo are to begin production at Juanicipio, Zacatecas; Telson Resources is to finish construction of the mine at Tahuehueto, Durango; Hecla’s will continue with open pit and then underground operations at San Sebastian, Durango.
  • Camimex stated that during 2018 Mexico’s gold production diminished 6.7% compared with 2017, reaching 3.8 M Oz Au. Five companies produced more than half of the overall gold production in 2018: Fresnillo (24.1%), Torex Gold (9.3%), Agnico Eagle (8.5%), Goldcorp (7.1%) and Minera Frisco (6.5%) (Editor’s note.- This last company has the dubious honor of being the most opaque for disclosing production, reserves and resources from its projects in Mexico).

ON EXPLORATION

  • Sable Resources Ltd. has received the permit needed to drill the Vinata project in Chihuahua. The surface agreements have been approved by the local community for an initial 2,500 m diamond drill program “to test the vertical continuity and mineral zoning along a section of the Vinata vein system where the veins are observed outcropping over 1000 m along strike”. Sable will contract a ground electromagnetic survey (CSAMT) to better define the vein system at depth and the contacts between a felsic dome and volcanic and sedimentary rocks. The mineralisation at Vinata occurs as a series of quartz veins that outcrop for 1,200 m, with multiple sub-parallel veins and stockwork zones over a width of 15 to 170 m, with individual veins ranging to up to 12 m in width.
  • One World Lithium Inc. released results from drilling at its Salar del Diablo property in Baja California (there is not a state named Baja California Norte in Mexico). The drill holes did not reach the target depths due to “the constant sluffing of sand, presence of multiple clay formations, unconsolidated gravel and rubble”. The highest lithum grade in sediment samples was 273 ppm Li, whereas the water samples are thought to have been diluted by the injection of significant amounts of fresh water while drilling. The Company intends to resume its 4,250 foot drilling program before the end of September 2019.
  • Discovery Metals Corp. has been granted drilling permits for its Monclova project in Coahuila. “The Real Viejo area is the key near-term target. It hosts five historic shallow underground mines along a strike of 1.5km at a limestone-intrusive rock contact”, with rock channel samples averaging 277 gpt Ag, 6.7% Zn, 1.9% Pb. The Real Viejo area is 2 square-km in size and is located along the southern contact of the Monclova intrusive complex, where a series of Ag-ZnPb mineralised, silica-rich vein, replacement bodies (mantos), skarn-altered embayment zones and breccias 2-10 m wide are located.
  • Fresnillo Plc. is realizing exploration work in the Guanajuato district, mainly near Mineral de La Luz.
  • Magna Gold Corp. initiated its phase one exploration program on the Mercedes project in Sonora. The aim on this phase is to confirm the existence (suggested by historical drilling) of an oxide zone of quartz stockwork Au-Ag mineralisation 60 m wide and 220 m long, and a surface study including geological mapping of a 500 ha zone and  systematic rock chip and soil geochemical surveys.

ON MINING

  • Torex Gold Resources Inc. reported Q2 2019 gold production of 113,600 Oz Au at its Limon-Guajes mine in Guerrero. Plant throughput averaged 11,670 tonnes per day (tdp), underground mine production was 1,280 tpd, open pit ore production was 18,600 tpd and the open pit strip ratio was 6.8:1.
  • Coeur Mining Inc. announced second quarter 2019 production. At Palmarejo, in Chihuahua, 447.7 K tonnes were milled @ 2.18 gpt Au, 147.4 gpt Ag, with recoveries of 87.7% Au, 81.8% Ag to produce 28,246 Oz Au, 1.7 M Oz Ag. Production at the La Nacion deposit began and is anticipated to add 400 tpd of mill feed.
  • Great Panther Mining Ltd. presented second quarter 2019 results including figures from its Mexican operations. At Topia, in Durango 18.4 K tonnes were processed @ 392 gpt Ag, 1.01 gpt Au, recovering 93.9% Ag, 58.9% Au to produce 218 K Oz Ag, 353 Oz Au, 453 tonnes Pb, 575 tonnes Zn. At the Guanajuato mine Complex, solely from the San Ignacio mine, 45.5 K tonnes were processed @ 2.52 gpt Au, 105 gpt Ag, recovering 85.5% Ag, 87.0% Au, to produce 388.4 K Oz Ag, 3,209 Oz Au.
  • GoGold Resources Inc. reported production results from its tailings project in Parral, Chihuahua. During the period 250 K Oz Ag, 2,281 Oz Au were recovered.

Endeavour Silver Corp. disclosed second quarter 2019 production results from its four mines in Mexico.

Endeavour Q2 2019 Production table1

ON FINANCING

  • Mexican Gold Corp. is undertaking a non-brokered private placement for aggregate gross proceeds of up to $4 M (Las Minas, Veracruz).
  • Impact Silver Corp. completed the first tranche of its non-brokered private placement, raising gross proceeds of $1.23 M, and announced the increase on the second tranche of financing to up to $1.5 M (Zacualpan, Estado de Mexico).
  • Evrim Resources Corp. announced the approval of the grant of 1 M stock options to an officer under the terms of the company’s stock option plan (Cerro Cascaron, Chihuahua).
  • One World Lithium Inc. closed the first tranche of its private placement financing, raising CDN$734.6 K (Salar del Diablo, Baja California. Please note there is not a Baja California Norte state in Mexico).
  • Oceanus Resources Corp. closed a non-brokered private placement raising $750 K (El Tigre, Sonora).
  • Silver One Resources Inc. increased its previously announced private placement, for gross proceeds of $5 M (La Frazada, Nayarit).
  • Advance Gold Corp. closed the non-brokered private placement financing previously announced, for gross proceeds of $234 K (Tabasquena, Zacatecas).
  • Millrock Resources Inc. plans to raise gross proceeds of between $1 M and $1.5 M through a non-brokered private placement. Finder’s fees of 7% cash and 7% finder’s warrants may be paid in connection with the Offering (Batamote, Sonora).

ON RESOURCES AND DEVELOPMENT

  • SilverCrest Metals Inc. filed the technical report titled “Technical Report and Preliminary Economic Assessment for the Las Chispas Property, Sonora, Mexico”. The PEA results were previously released.
  • VVC Exploration Corp. received the environmental permit and a land use change permit for its Samalayuca copper property in Chihuahua. With those permits the company can initiate mining operations in the Gloria zones of the Kaity claim. VVC began bench testing with mineralised material from the Gloria zones to assess metallurgy with different crush sizes and acid flow rates.
  • SilverCrest Metals Inc. provided the first underground sample results from the Babicanora vein on its Las Chispas project in Sonora. A total of 133 samples were collected from blast faces for 35 m of a 3.5 m by 3.5 m drift along the vein, same that averaged 2.6 m (vein width) @ 13.70 gpt Au, 1,107 gpt Ag (or 2,132 gpt AgEq). Some of the best intervals released comprise: 3.9 m @ 62.66 gpt Au, 4,610 gpt Ag (including 0.6 m @ 336 gpt Au, 26,435 gpt Ag); 4.1 m @ 13.91 gpt Au, 709 gpt Ag; 3.5 m @ 16.69 gpt Au, 2,192 gpt Ag; 1.8 m @ 53.18 gpt Au, 3,548 gpt Ag; 3.2 m @ 12.89 gpt Au, 799 gpt Ag; 5 m @ 16.69 gpt Au, 2,192 gpt Ag; 3.2 m @ 18.74 gpt Au, 459 gpt Ag; 2.1 m @ 14.77 gpt Au, 1,542 gpt Ag; 2.5 m @ 15.27 gpt Au, 1,426 gpt Ag; 2.5 m @ 21.73 gpt Au, 1,231 gpt Ag.
  • Goldplay Exploration Ltd. encountered a broad gold zone at the Nava target of its San Marcial project in Sinaloa. The results come from a zone 300 m west of the first Nava trenches, where a 31 m true width (tw) zone mineralised zone of epithermal quartz veins and a zone of intense stockwork which returned 17.7 m (tw) @ 2.11 gpt Au. The target is to be drill tested on the next drill program with a couple of holes.

ON DEALS AND CORPORATE ISSUES

  • Orex Minerals Inc. entered into an agreement with Pan American Silver Corp. to negotiate a formal JV agreement on the Sandra Escobar project in Durango, to replace a previous agreement from 2015, and will suspend the operation of the 2015 agreement until the new agreement is entered into, or until December 31, 2019, whichever is earlier.
  • Oroco Resources Corp. entered into a letter of agreement for the acquisition of an 80% interest in the 766.7 ha Rossy mining concession located within Oroco’s land package on the Santo Tomas district in Sinaloa. The company has to pay US$125 K over two years and issue 300 K shares and grant 1.5 NSR.

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, orogenic gold style milky quartz vein bearing pyrite and jarosite in Oaxaca. Picture by Jorge Cirett

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

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By Jorge Cirett

During the 26th week of the year (June 24th to June 30th, 2019), at least 43 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, a resolution by the Supreme Court is awaited to learn how the Mining Fund resources are to be allocated, if for social and environmental infrastructure (as planned) or as direct allocations to the people of the communities, the preferred method of the president (a method the opposition denounces as vote buying). In Sonora a local congressman introduced a bill for a new state tax on dirt extracted from open pits, a measure that if implemented is to pose a further weight in the already heavy fiscal load for mining companies in Mexico. Furthermore, the Economy Secretariat (Secretaria de Economia) published a letter stating that the “Protocol of Good Practice of Mining for the Public Consultation” (Protocolo de buenas practicas de la Minería para la consulta pública) is under review by the agency. It is not possible to underrate the importance of the review of this protocol, because if it is implemented incorrectly the result would impact fast and catastrophically the Mexican exploration industry. One of the more pressing issues is the fact that placing the consultation process before exploration takes place, would end most exploration in one swipe. If in doubt, just take a look to Oaxaca, where, although not being in the law you have to make the community consultation process before exploring, and the result is that hardly any exploration work is nowadays conducted in one of the states with the best mineralization potential in Mexico. Trust is hard to earn, let’s not throw it away so carelessly. ON EXPLORATION, In Zacatecas, Galore continues to drill at Dos Santos; Alien Metals updated on its exploration of Donovan 2 and Los Campos. ON MINING, Alien Metals released its financial results for 2018. ON FINANCING, Santacruz signed an agreement to extend the payment of a US$2.3 M loan. Galore is making a $1.5 M financing. Goldplay closed an oversubscribed financing for $1.37 M. Leagold completed a debt refinancing for a $200 M term loan and a $200 M revolving credit facility. ePower intends to conduct a private placement for Cdn$6 M. Sable granted 2.8 M incentive stock options. Alien Metals raised £350 K.  ON RESOURCES AND DEVELOPMENT, Mexus Gold  is to start leaching at Santa Elena, in Sonora. Telson reported significant underground channel sample results at Tahuehueto. Orla presented the result of the FS on Camino Rojo. Premier Gold presented results of its 42,000 m drilling campaign at Mercedes. Southern Silver file a technical report with updated resources on Cerro Las Minas. Santacruz presented results of drilling at Veta Grande. GoGold released results of drilling at Los Ricos. SilverCrest informed the decline has intersected the Babicanora vein at Las Chispas. Minera Alamos informed on the permitting of Santana. Almaden updated on permitting and legal issues at its Ixtaca project in Puebla. ON DEALS AND CORPORATE ISSUES, Millrock sold its Sonoran portfolio to Riverside. ePower Metals entered into a definitive agreement with Minera Alamos to acquire the Los Reyes project in Sinaloa. Silver Viper renegotiated much better terms on the lease of two properties within its La Virgina project in Sonora. Golden Minerals entered into an agreement under which Minera Autlan is to buy its Velardeña properties. Bacanora Lithoum signed an investment agreement and an offtake agreement with Ganfeng Lithium on its Sonora lithium project. Canasil and Pan American agreed on terms for the acquisition of Pan American of the Sandra Escobar project in Durango.

ON MEXICO ISSUES

  • The Economy Secretariat is awaiting the resolution of the Supreme Court on the change of rules to apply the Mining Fund, which this year is anticipated to be amounting to 3.2 billion pesos (3,200 millones) or approximately US$168.4 M. The proposal by the present Federal government (ie.- the president) is to deliver the resources directly to the people to “augment the capacities” of the mining communities. The aim would be to organize the community and the service providers to be part of the service chain for the mining industry. The resources on the Mining Fund to date are to be funneled according with the current rules, until a resolution by the Supreme Court clarifies the issue.
  • In Sonora, local congressman Carlos Navarrete from the Encuentro Social party (allied to the Morena party) introduced a bill for a new State tax on dirt extracted from open pits (includes waste, sand, dimension stone, clays, limestone, lime, among others). The US$0.63 tax per cubic metre of material would be split 80/20 between the municipalities and the State. The resources would be utilized in physical investments and infrastructure with social impact, in the environment and urban development (The bill intends to use the resources thus gathered in the same way that those of the Mining Fund were supposed to be used, and for which a 7% federal royalty tax was imposed on mining a few years ago. Now that the current president Andrés Manuel Lopez Obrador intends to use the resources of the Mining Fund for his preferred programs, allied politicians are trying to make the mining industry pay even more taxes).
  • The Economy Secretariat published a letter on the “Protocol of Good Practice of Mining for the Public Consultation”. In the letter the Economy Secretariat states that the protocol is under review by the agency. On the Letter: The consultation process is to be applied to all communities that can be impacted by the mining activity. Also, both exploration and exploitation should be consulted before their realization. The responsible authority is to be the Economy Secretariat, with aid by the Instituto Nacional de los Pueblos Indigenas and other authorities (SEMARNAT, CONAGUA, CFE, local municipal and state governments), as well as the state and federal Human Rights Commissions.

ON EXPLORATION

  • Galore Resources Inc. informed its 2,500 m diamond core drilling program at the El Alamo target of its Dos Santos project in Zacatecas continues to progress well. The first hole “intersected multiple zones of alteration and brecciation …… silicified and brecciated limestone similar to those observed on the surface over a much wider zone than was anticipated”.
  • Alien Metals Ltd. updated on its exploration activities at its Zacatecas properties Donovan 2, Los Campos and Don Celso. Sampling and mapping at Donovan 2 has resulted in high grade mineralisation in historic workings open along strike, and channel sample assays of up to 1.15% Cu and float samples of up to 0.45 gpt Au. Planned work includes a ground induced polarisation (IP) geophysical survey before the first phase of drilling. Surface mapping and sampling will be undertaken at Los Campos and Don Celso properties, as well as underground sampling and a geophysical survey at Los Campos.

ON MINING

  • Alien Metals Ltd. released its audited financial results for 2018. The company owns the Donovan 2, Los Campos, San Celso and La Africana projects in Zacatecas. The company held US$0.7 M in cash and cash equivalents by the end of the period.

ON FINANCING

  • Santacruz Silver Mining Ltd. reached an agreement to amend the repayment terms of the US$2.3 M short-term loan that it has borrowed from a private Bolivian mining company. The principal balance of US$2.3 million is now to be repaid by January 30, 2020. As consideration for the extension on the date of repayment Santacruz is to increase the issue of 2 M warrants to 2.5 M warrants (Veta Grande, Zacatecas).
  • Galore Resources Inc. is to commence a non-brokered private placement to raise gross proceeds of up to $1.5 M (Dos Santos, Zacatecas).
  • Goldplay Exploration Ltd. closed its over-subscribed previously announced financing, for gross proceeds of $1.37 M. A total of $28.9 K was paid and 231 K warrants were issued as a finder’s fee payment (San Marcial, Sinaloa).
  • Leagold Mining Corp. completed the debt refinancing with a syndicate of lenders that includes a $200 million term loan and a $200 million revolving credit facility. These loans have been used to replace $238 million of existing short-term debt, and will aid in the development of the Bermejal underground complex, the Guadalupe open pit and the CIL plant construction at it Los Filos mine in Guerrero.
  • ePower Metals Inc. intends to conduct a non-brokered private placement to raise up to Cdn$6 M (Los Reyes, Sinaloa).
  • Sable Resources Ltd. granted 2.8 M incentive stock options to certain officers, directors, employees and consultants of the company. Such options are exercisable at a price of $0.15 for a period of five years (Margarita and Vinata, Chihuahua).
  • Alien Metals Ltd. raised £350 K through the placement of shares (Donovan 2, Los Campos, Zacatecas).

ON RESOURCES AND DEVELOPMENT

  • Mexus Gold US. is to start leaching at its Santa Elena mine in Sonora (not to mistake for First Majestic’s Santa Elena mine, also in Sonora). Leaching is programmed to start on June 27th, with ore grading 1.8 gpt Au, 8 gpt Ag, to later on add ore @ 4 gpt Au, 12 gpt Ag. By September the company expects to be mining 3,500 tonnes per week.
  • Telson Mining Corp. reported significant channel sample assay results for underground mine development at its Tahuehueto project in Durango, where a 1,000 tonne per day mine is under construction. Highlighted results include: 2.42 m @ 5.76 gpt Au, 129 gpt Ag, 1.44% Cu, 3.8% Pb, 6.2% Zn; 5.50 m @ 3.31 gpt Au, 57 gpt Ag, 0.32% Cu, 0.9% Pb, 3.5% Zn; 5.38 m @ 4.41 gpt Au, 44 gpt Ag, 0.38% Cu, 1.5% Pb, 3.6% Zn; 7.0 m @ 5.12 gpt Au, 40 gpt Ag, 0.29% Cu, 1.0% Pb, 3.2% Zn; 6.45 m @ 5.69 gpt Au, 51 gpt Ag, 0.21% Cu, 2.3% Pb, 5.6% Zn; 4.42 m @ 8.70 gpt Au, 59 gpt Ag, 0.18% Cu, 1.7% Pb, 2.2% Zn; 4.08 m @ 9.27 gpt Au, 69 gpt Ag, 0.19% Cu, 0.6% Pb, 1.0% Zn; 3.56 m @ 7.95 gpt Au, 76 gpt Ag, 0.25% Cu, 3.3% Pb, 4.6% Zn. Individual assays are often above 5 gpt Au, and up to 28 gpt Au.
  • Orla Mining Ltd. presented the results of a feasibility study on its Camino Rojo Oxide project in Zacatecas. The main points include 18 K tonnes per day operation, with 44 M tonnes of ore to be put on the leach pad @ 0.73 gpt Au, 14.2 gpt Ag, containing 1 M Oz Au, 20.1 M Oz Ag. The expected recovery is 64% Au, 17% Ag, with an annual gold production of 97 K Oz Au at by-product cash cost $515 per Au Oz and an AISC of $576 per Au Oz. The after tax net present value (5%) is $142 M, with an after tax internal rate of return of 28.7% and a payback period of three years, all this in the case scenario of $1,250 per Au Oz price. The proven and probable mineral reserves stand at 44 M tonnes @ 0.73 gpt Au, 14.4 gpt Ag, whereas the measured and indicated resources amount to 353.4 M tonnes @ 0.83 gpt Au, 8.8 gpt Ag, containing 9.46 M Oz Au, 100.4 M Oz Ag. Inferred mineral resources are 60.9 M tonnes @ 0.87 gpt Au, 7.4 gpt Ag, containing 1.70 M Oz Au, 14.5 M Oz Ag.
  • Premier Gold Mines Ltd. presented exploration results of its 42,000 m drilling program at its Mercedes mine in Sonora. New mineralised veins have been confirmed at San Martin, opening the area 600 m to the west of the Lupita deposit. Drilling at San Martin returned multiple intercepts, including 7.2 m @ 4.64 gpt Au, 30 gpt Ag; 1.4 m @ 5.56 gpt Au, 38 gpt Ag. Ongoing delineation at Lupita includes intercepts of 3.9 m @ 10.3 gpt Au, 88 gpt Ag and 1.5 m @ 23.9 gpt Au, 71 gpt Ag. Exploration is to be activated at La Mesa area, adjacent to Agnico Eagle’s Santa Gertrudis project.
  • Southern Silver Corp. filed a NI-43-101 report with an updated mineral resource estimate for its Cerro Las Minas project in Durango (previously disclosed). The indicated resources amount to 11.1 M tonnes @ 105 gpt Ag, 0.1 gpt Au, 0.16% Cu, 1.2% Pb, 3.7% Zn, containing 37.5 M OZ Ag, 35 K Oz Au, 40 M Lb Cu, 303 M Lb Pb, 897 Lb Zn, Inferred mineral resources comprise 12.8 Mt @ 111 gpt Ag, 0.07 gpt Au, 0.27% Cu, 0.9% Pb, 2.8% Zn, containing 45.7 M Oz Ag, 31 K Oz Au, 76 M Lb Cu, 253 M Lb Pb, 796 M Lb Zn. “The overall objective of the 2019-20 exploration program is to continue to increase the existing resource base and to identify and drill test new epithermal vein systems within the larger claim package.”
  • Santacruz Silver Mining Ltd. released results from phase 1 of the current drilling program on the Veta Grande, Armados and Navidad veins on its Veta Grande project in Zacatecas. Highlighted true width intercepts comprise 0.55 m @ 761 gpt Ag, 0.2 gpt Au, 0.86% Pb, 1.84% Zn, 0.04% Cu; 1.94 m @ 65 gpt Ag, 0.75 gpt Au, 1.23% Pb, 3.84% Zn, 0.03% Cu at the Navidad vein; 2.40 m @ 227 gpt Ag, 0.88 gpt Au, 2.71% Pb, 2.64% Zn, 0.19% Cu; 1.59 m @ 280 gpt Ag, 0.61 gpt Au, 3.60% Pb, 3.24% Zn, 0.22% Cu.
  • GoGold Resources Inc. released results from two more diamond drill holes at its Los Ricos property in Jalisco. Highlighted intervals comprise 5.0 m @ 0.52 gpt Au, 161 gpt Ag; 6.3 m @ 2.14 gpt Au, 337 gpt Ag and 32.0 m @ 0.80 gpt Au, 179 gpt Ag, including 11.3 m @ 1.46 gpt Au, 348 gpt Ag. The 10,000 m HQ diamond drill program “is focused on defining the mineralized halo around the historical high grade ore shoots as defined by the underground workings and the 65 historical RC drill holes on the property”.
  • SilverCrest Metals Inc. informed the decline has intersected the Babicanora vein at the Las Chispas project in Sonora. The decline intersected the Babicanora vein and the newly identified Baby Vista vein, the first with 3.6 m true width and the second with 1.5 m true width. Additional highlighted infill results of the area 51 of the Babicanora vein include 7.6 m @ 26.6 gpt Au, 2,676 gpt Ag; 3.5 m @ 32 gpt Au, 3,417 gpt Ag; 5.6 m @ 13.6 gpt Au, 1,154 gpt Ag. The 51 in-fill drill holes totaling 18,488 m reported in this news release were “generally targeting mineralization on the outer edges of the current block model” have a weighted average true width of 2.2 m @ 7.17 gpt Au, 753 gpt Ag. An additional 40,000 to 50,000 m of infill and expansion drilling with 15 drill rigs on site focused on expanding mineralization and improving resource confidence. To date over 203,000 m of drilling have been sunk in the property. Ongoing work includes the Feasibility study expected in H1, 2020 development of the Babicanora Vein in Area 51 zone, stockpiling of high-grade material, an extensive metallurgical test program, geotechnical work and permitting for project development.
  • Minera Alamos Inc. received notification by SEMARNAT (Mexican environmental agency) confirming the successful completion of the technical review phase of the application (Estudio Tecnico Justificativo – “ETJ”) for the change of land use to allow the construction of mining and processing facilities at the Santana project area in Sonora. Phase 2 exploration will continue on the coming months, focusing to “demonstrate the potential of the project to host multiple “Nicho-style” mineralized systems that could be combined to supply feed material for an expanded regional production facility”.
  • Almaden Minerals Ltd. current focus at its Ixtaca property in Puebla relates to permitting and financing activities. “Review by Mexican authorities of Almaden’s environmental permit application (Manifestación de Impacto Ambiental, or “MIA”) continues in the normal course, and recently SEMARNAT, Mexico’s environmental authority, completed its public information meeting in the town of Santa Maria”. Almaden is engaged with several potential financing parties to secure funds for the development of the project. Regarding a decision by a lower court in Puebla State concerning Mexico’s mineral title system, Mexico’s Federal Congress, Senate, and Ministry of the Economy each filed appeals against the decision, as well as Almaden.

ON DEALS AND CORPORATE ISSUES

  • Ridgestone Mining Inc. entered into an agreement to acquire 100% interest in ten mining concessions adjacent to its Rebeico project in Sonora. The concessions cover 3,292 ha west of the Ridgestone claims, in an area with “numerous artisanal workings and mineralized outcrops”. Ridgestone has to make a $83 K payment and issue 5 M shares to the vendor.
  • Millrock Resources Inc. entered into an agreement to sell the La Union, Los Cuarentas, El Pima, El Valle and Llano del Nogal claim blocks to Riverside Resources Inc. The Santa Rosalia option from the Los Cuarenta project will also be transferred. The deal, that includes a geological database and exploration equipment, involves Riverside paying $35 K and issuing 150 K shares to Millrock, as well as a 0.5% net smelter royalty (NSR) on the El Pima and El Valle claims, and in the Santa Rosalia option.
  • ePower Metals Inc. entered into a definitive agreement with Minera Alamos Inc. and Vista Gold Corp. under which ePower has the right to earn 100% interest in the Los Reyes project in Sinaloa. In connection with the Transaction, the Company intends to change its name to “Prime Mining Corp.”, and will focus its resources on the immediate development of Los Reyes. ePower has to complete a $1.5 M cash payment to Minera Alamos, and assume the remaining option payments to Vista Gold of US$1.5 M on October 2019 and US$1.5 M on October 2021, as well as issuing Minera Alamos 9.45 M post-consolidation shares and 3.35 M warrants. ePower has to consolidate its common shares capital on a two-for-one basis and complete a financing of at least Cdn$6 M. The Los Reyes project has an historical estimate of 427.2 K Oz Au, 7.5 M Oz Ag in indicated resources and 196.7 K Oz Au, 4.8 M Oz Ag of inferred resources.
  • Silver Viper Minerals Corp. renegotiated the terms of the Rubi-Esperanza option agreement to purchase three mineral concessions within its La Virginia project in Sonora. The overall agreement reduced the total cash payments from $4.49 M to $3 M, augmented in one year the term of the option and crucially reduced the amount on the first three payments by $1.46 M, enabling Silver Viper to direct maximum expenditures to advancing the project. According to the new agreement the company has to pay US$50 K on June 2019 (paid), US$75 K on June 2020, US$100 K on June 2021, US$200 K on June 2022 and US$2.575 M on June 2023. A 2% NSR can be purchased for US$2 M within 5 years of the original agreement remains unchanged. “Surface geochemistry and prospecting have identified targets to the north, south and east of the El Rubi discovery (6 m TW @ 3.16 gpt Au, 228 gpt Ag) which will be tested during the next phase of drilling. In addition, Silver Viper has contracted Geotech Ltd. to conduct a 720 line-kilometer magnetic and radiometric survey over the El Rubi and La Gloria targets for a total coverage of 4,900 hectares”.
  • Golden Minerals Co. entered into an agreement to sell its Velardeña properties to Compañía Minera Autlán S.A.B. de C.V. for $22 M. The deal comprises the Velardeña properties, including the Velardeña and Chicago mines (currently in care and maintenance) and other adjacent exploration properties, and the lease agreement under which Golden Minerals has the oxide plant with Hecla thorough 2020. The proposed transaction also would include the sale of the Rodeo and the Santa Maria project concessions. Upon execution of this agreement, Autlan paid a deposit of US$1.5 million to Golden Minerals, which will be applied to the purchase price upon closing.
  • Bacanora Lithium PLC. signed an investment agreement and off-take agreement with Ganfeng Lithium Co. (a key player in the lithium industry globally). Once completed this agreement would form a major part of the financing package needed to develop the initial 17,500 tonnes per year production of lithium carbonate. The £14.4 M strategic investment provides Ganfeng with 29.99% of Bacanora, pre-emption rights and a director on the board. Another project level investment of £7.56 M in Sonora Lithium Ltd. (the holding company of the project) accrues Ganfeng 22.5% of the holding company, with an option to increase its interest to 50% within 24 months and the appointment of a director to the board. GFL will provide a plant and process commissioning team to assist Bacanora in delivering first production in 2021.
  • Canasil Resources Inc. and Pan American Silver Corp. signed the definitive agreement under which Pan American has the right to acquire Canasil’s interest in the Sandra Escobar project, in Durango. The transaction was closed for a payment of CDN$2 M and grant of a 2% NSR, with Pan American being able to buy 1% of the NSR by the payment to Canasil of CDN$4 M.

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, conglomerate with well-rounded quartz vein and silicified rock fragments in the coastal plain in Veracruz. Picture by Jorge Cirett.

IMG_1079 - copia

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

Inguaran Feb 2011 151 - copiaBy Jorge Cirett

During the 22nd week of the year (May 27th to June 2nd, 2019), at least 27 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, on a move that is likely to paralyze the processing of documents at all regional offices of the Direccion General de Minas, the federal government fired all non-unionized workers. The Peñasquito mine in Zacatecas has now been closed by an illegal blockade for more than a month. ON EXPLORATION, In Sonora, Sonoro Metals provided an update on drilling at its Cerro Caliche property. In Chihuahua, Radius Gold released results on two more holes at its Amalia project. In Zacatecas, Galore Resources is mobilizing a rig to drill the El Alamo and Los Gemelos projects. ON MINING, Impact Silver, Telson Resources and Santacruz Silver presented its first quarter 2019 financial and/or operational results. Endeavour Silver updated on its performance plan. Camrova provided an update on mining and mine life plans for the Boleo mine in Baja. ON FINANCING, Prize Mining completed the first tranche of financing for $630 K; Ethos Gold announced a financing round intended to raise $225 K. Magna Gold completed a  private placement for CAD$2.67 M. Silver One is to start trading on the OTCQB Marketplace. ON RESOURCES AND DEVELOPMENT, Gold Resource released more drill results from its El Aguila project in Oaxaca. Fresnillo is investing US$5 M at La Cienega mine in Durango. GoGold released assay results from trenching at its Los Ricos property in Jalisco. Defiance Silver is drilling a geophysical anomaly along the Veta Grande vein system in Zacatecas. ON DEALS AND CORPORATE ISSUES, Radius Gold granted Panamerican Silver an option to earn up to 65% on the Amalia project, in Chihuahua. Magna Gold is to commence trading on June 5, 2019. The company optioned the Mercedes property and lately the Las Marias and Las Cabañas properties, in the vicinity Mercedes. Discovery Metals and Levon Resources combined their enterprises on an agreement that gives Discovery and Levon shareholders 50.4% and 49.6% ownership respectively. Altos Hornos de Mexico (AHMSA) bank accounts have begun unfreezing by Mexican authorities.

ON MEXICO ISSUES

  • The federal government fired all non-unionized workers from the regional offices of the Dirección General de Minas (Chihuahua, Durango, Guadalajara, Hermosillo, Puebla, Queretaro, Saltillo, Zacatecas), in a move that is very likely to paralyze the already slow pace of paperwork at this government branch. Releasing of ground for staking, issuing concession titles, title reductions, cartographic information and contract registration are just some of the processes likely to be affected by this event (Personnel reduction is a cost saving strategy by the present federal administration, strategy that is feared to be likely to result in the centralization, slowing and paralysis of many government services in the coming months).
  • The Peñasquito mine in Zacatecas has been now affected by an illegal blockade for more than a month. So far authorities at all levels continue to advise “negotiations” as the way to solve the illegal blockade, being careful not to mention any applicable law.

ON EXPLORATION

  • Galore Resources Inc. announced the mobilization of a drill rig to El Alamo project in Zacatecas. The 2,500 m diamond drill program can be followed by additional 1,500 m of drilling at Los Gemelos project, also in Zacatecas. El Alamo consists of Cretaceous sediments, mostly limestone with some siltstone and chert, with alteration and mineralization represented by varying amounts of silicification and iron-oxide bodies after sulfides. The target has a minimum strike length of 500 m and 200 m width. Trenching highlighted values of up to 20.4 gpt Au, whereas drilling encountered widespread anomalous gold, running up to 17.1 gpt Au. Coarse gold recovery by gravity was attempted at the nearby Los Gemelos property with a partner, but the agreement on such endeavor has been terminated due to the lack of results. The drill target at Los Gemelos are porphyry intrusive related gold-copper skarns.
  • Radius Gold Inc. has completed six diamond drill holes totaling 1,743 m at its Amalia project in Chihuahua. Assays have been received for the second and third holes (results on the first hole were previously released), highlighting the intercept of 5m @ 647 gpt Ag of white chalcedonic stockworks, silicification and hydrothermal breccias. The remaining three holes (results pending) cut wide intervals of moderate to strong silica and adularia alteration, brecciation, quartz sulphide veinlets and trace fine to moderate black sulphides.
  • Sonoro Metals Corp. provided an update on the last 20 holes at its Cerro Caliche project in Sonora. Highlighted intercepts comprise 9.15 m @ 1.26 gpt AuEq at Japoneses, 3.05 m @ 6.18 gpt AuEq; 9.14 m @ 1.33 gpt AuEq at La Española, 15.24 m @ 0.56 gpt AuEq at Guadalupe, 7.6 m @ 1.14 gpt AuEq at Chinos Altos, 10.67 m @ 1.06 gpt AuEq, and 10.67 m @ 0.74 gpt AuEq at Buena Suerte. Almost 90% of the 10,000 m drill program is now complete.

ON MINING

  • Impact Silver Corp. released its first quarter 2019 financial and production results. The company processed 35.8 K tonnes @ 167 gpt Ag to produce 163.6 K Oz Ag. Revenue was $3.0 M, with a net loss for the quarter of $0.9 M. Costs per tonne processed have been reduced by 10% from last year, as the company continues to focus on cost reductions. Dense media separation is being evaluated for treating ore from the Capire project, and a new concentrate sales partnership has been signed. The company had cash of $0.4 M and trade and other receivables of $1.6 by the end of the period.
  • Endeavour Silver Corp. updated on its operating and financial performance plan initiated on recent months. The plan involves “changes to mine-site management and contractors, changes to employee and contractor supervision, renting used mining equipment and leasing new mining equipment, and revising the 2019 mine plans for all four mines, particularly Guanacevi. The Company has cut operating and administrative costs, reduced the employee and contractor workforce by 18% and deferred all discretionary expenditures”.
  • Telson Mining Corp. reported first quarter 2019 financial results. At Campo Morado in Guerrero, 152.1 K tonnes of ore @ 4.25% Zn, 1.14% Pb, 118 gpt Ag, 1.08 gpt Au were mined at a daily rate of 1,811 tonnes (tpd); 148.3 K tonnes were processed (1,765 tpd), recovering 69% Zn, 33% Pb to produce 9.7 M Lb Zn, 1.5 M Lb Pb, 212.7 K Oz Ag, 895 Oz Au at cash cost of US$0.71 and AISC US$1.01 per Lb Zn produced, obtaining a mine operating profit of C$3.05 M. At Tahuehueto in Durango, pre-production mining rendered approximately 21.6 K tonnes of ore. Telson produced 168 tonnes of lead concentrate (39% Pb, 6% Cu, 80 gpt Au, 840 gpt Ag) and 218 tonnes of Zinc concentrate (44% Zn, 9 gpt Au, 68 gpt Ag). Recoveries stood at 81% Au, 86% Ag, 90% Pb, 60% Zn, 88% Cu.
  • Santacruz Silver Mining Ltd. reported operating and financial results for the first quarter 2019. During the period 42.9 K tonnes were processed to produce 257 k Oz AgEq at cash cost $20.64 and an AISC of $24.38. Revenue was $2.49 M on mining operations and $790 K on mining services, reporting a net loss of $1.84 M (Veta Grande, Zacatecas; Rosario, San Luis Potosi).
  • Camrova Resources Inc. provided an update on the Boleo mine activities in Baja California Sur. The project is run by Korea Resources Corp, the majority shareholder, with Camrova holding a 7.24% stake that gives it rights to attend board meetings. For 2019 the production forecast of underground ore is 508 Kt @ 1.19% Cu and 2.44 Mt of open pit ore @ 80% Cu. Recoveries are expected to be 80.4% Cu, 29.9% Co, 4.2% Zn to produce 19,697 t of copper cathode, 419 t of cobalt and 1,016 t of zinc, resulting in negative free cash flow of $21M after payment of $25M in interest. It is also forecasted a 16 years mine life ending in 2034 by which time all debt is projected to be repaid, without a return of any of the capital that has been invested to date.

ON FINANCING

  • Prize Mining Corp. closed the first tranche of a non-brokered private placement, for gross proceeds of $630 K (Manto Negro, Coahuila).
  • Magna Gold Corp. completed a private placement financing for gross proceeds of CAD$2.67 M (Mercedes, Sonora).
  • Defiance Silver Corp. granted 990 K options to directors, officers and employees of the company at an exercise price of $0.195.
  • Silver One Resources Inc. shares will commence trading on the OTCQB Marketplace under the symbol “SLVRF” at open of markets on May 31, 2019(La Frazada, Nayarit).
  • Ethos Gold Corp. announced a non-brokered private placement to raise gross proceeds of $225 K (La Purisima, Chihuahua).

ON RESOURCES AND DEVELOPMENT

  • Gold Resource Corp. released further drilling results from its El Aguila property in Oaxaca. “High-grade mineralization intercepted 175 meters along the northern strike and 200 meters up-dip in vertical elevation significantly expanding the Arista Mine”. Highlighted intercepts comprise 3.45 m @ 2.45 gpt Au, 17 gpt Ag, 0.42% Cu, 1.4% Pb, 5.8% Zn; 1.45 m @ 4.35 gpt Au, 91 gpt Ag, 0.35% Cu, 1.5% Pb, 1.7% Zn; 11.95 m @ 1.04 gpt Au, 494 gpt Ag, 0.14% Cu, 0.4% Pb, 1.1% Zn (including 2.50 m @ 2.68 gpt Au, 1,420 gpt Ag, 0.33% Cu, 1.3% Pb, 3.2% Zn); 8.02 m @ 0.56 gpt Au, 395 gpt Ag, 0.06% Cu, nil Pb, 0.1%Zn.
  • Fresnillo PLC. is investing US$5 M at its La Cienega mine in Durango. The company is to undertake an economic evaluation of the plant expansion, intensify exploration on several targets and permitting the fourth tailings dam. The 4,000 tonne/day (tpd) mining unit has been in operation since 1992, currently with a labor force of 513 employees and 544 workers by contractors. On 2018 the plant processed 1.32 M tonnes @ 1.65 gpt Au, 164 gpt Ag, to produce 66,869 Oz Au, 6 M Oz Ag, 4,799 tonnes Pb, 5,892 tonnes Zn.
  • GoGold Resources Inc. released assay results from 23 exploration trenches completed at its Los Ricos project in Jalisco. Geological mapping, sampling and trenching defined at least five new targets, identifying mineralisation for further 1.5 Km along strike, taking the system to a total longitude of 3.2 Km, on 1 to 25 m widths. Highlighted results (on estimated true width) include 22 m @ 0.92 gpt Au, 54 gpt Ag; 16.0 m @ 2.53 gpt Au, 187 gpt Ag; 21.0 m @ 0.44 gpt Au, 47 gpt Ag; 18.0 m @ 3.50 gpt Au, 71 gpt Ag; 7.4 m @ 2.16 gpt Au, 31 gpt Ag; 5.6 m @ 3.32 gpt Au, 49 gpt Ag; 9.1 m @ 1.73 gpt Au, 112 gpt Ag; 16 m @ 0.55 gpt Au, 163 gpt Ag; 17.6 m @ 0.76 gpt Au, 121 gpt Ag; 10.1 m @ 1.42 gpt Au, 164 gpt Ag; 8.8 m @ 1.95 gpt Au, 129 gpt Ag.
  • Defiance Silver Corp. commenced a drill program targeting a large induced polarization (IP) geophysical target on the Veta Grande vein, SE of the San Acacio Silver deposit (with an inferred resource of 17 M Oz Ag @ 182 gpt Ag). The program is testing a 450 m step out on the Veta Grande vein system

ON DEALS AND CORPORATE ISSUES

  • Radius Gold Corp. has granted Pan American Silver Corp. the option to earn up to an initial 65% interest in the Amalia project in Chihuahua, by making cash payments to Radius totaling US$1.5 M (of which US$100 K has been received) and expending US$2 M on exploration over four years. Pan American may earn an additional 10% by advancing the property to preliminary-feasibility (Amalia, Chihuahua).
  • Magna Gold Corp. informed that its qualifying transaction is scheduled to close on June 5, 2019 pursuant to the policies of the Exchange. Trading of the common shares of Magna is expected to resume on the Exchange under the symbol “MGR”. The company has optioned 100% interest in two mining claims (the 345 ha Mercedes property in Sonora) for a four-year period, paying an aggregate of US$1.34 M paid in installments, starting on the sixth month of the effective date of the agreement and issue 2.44 M shares to the vendor. The seller is to retain a 3% NSR capped at $3.5 M, which can be bought at $500 K per percentage point within the first three years of production.
  • Magna Gold Corp. entered into an agreement to acquire the Las Marias property and Las Cabañas mineral claims. Las Marias consists of seven concessions covering 646 hectares adjacent to its flagship Mercedes property and Las Cabañas consists of two concessions covering 248 hectares 10 km from the Mercedes property. The total purchase will be $250 k and the issuance of 1 M common shares of the company. “Magna’s total land tenure will increase to 1,239 hectares of highly prospective ground”.
  • Discovery Metals Corp. and Levon Resources Ltd. entered into an arrangement agreement to combine both enterprises to create a “leading silver-focused exploration and development company that will control several district-scale projects in Mexico”. Discovery has agreed to acquire all of the issued and common shares of Levon, with Levon’s shareholders receiving 0.55 shares of Discovery for every Levon share held. Upon completing the transaction former shareholders of Levon will control 49.6% of the Discovery shares outstanding. Discovery holds a 150 K hectares land package in Coahuila, encompassing three shallow and high-grade silver-zinc-lead projects, while Levon’s primary asset is the Cordero project in Chihuahua, with 990 M tonnes @ 32 gpt AgEq and 282 M tones @ 56 gpt AgEq in indicated and inferred mineral resources respectively.
  • Altos Hornos de Mexico S. (AHMSA) bank accounts have begun unfreezing by Mexican authorities, allowing normal activities to be resumed. “The bank accounts of the steelmaker were frozen by Mexico’s financial intelligence unit earlier in the week on suspicion of money laundering. The move to unfreeze the accounts follows the arrest in Spain of AHMSA chairman Alonso Ancira, who was detained by Interpol on May 28.”

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, galena-sphalerite-pyrite-chalcopyrite-quartz vein piece from a mine in Michoacan. Picture by Jorge Cirett.

Inguaran Feb 2011 151 - copia

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

By Jorge Cirett

During the 20th week of the year (May 13th to May 19th, 2019), at least 34 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, the Mexican government set the goal to reach $8 billion on mining investment annually. Fresnillo received an award for sustainable development.  ON EXPLORATION, In Chihuahua, Silver Spruce granted the contract for its drilling program at Pino de Plata. ON MINING, Mag Silver, Sierra Metals, Americas Silver, Great Panther, Consolidated Zinc, Starcore International and Fortuna Silver presented its first quarter 2019 financial and or operational results. Mexus Gold is hiring technical personnel for its Santa Elena mine and Fresnillo is setting logistic controls to prevent concentrate theft. ON FINANCING, Alien Metals raised £300 K, Orla Mining announced an early warrant incentive program for $4.2 M, Vangold raised $248 K, and Sable Resources $863 K. Almaden secured a gold loan for US$2 M from Almadex, First Mining raised $7.41 M . ON RESOURCES AND DEVELOPMENT, Fresnillo and Mag Silver approved the development of the Juanicipio mine in Zacatecas. Premier Gold released good exploration results at its Mercedes mine in Sonora. GoGold released results from two more drill holes at Los Ricos, Jalisco.  SilverCrest filed a PEA with good numbers from its Las Chispas property in Sonora.  Goldplay announced a 5,000 m drilling campaign at its San Marcial project in Sinaloa. ON DEALS AND CORPORATE ISSUES, Riverside signed a 2 year US$2 M exploration financing agreement with BHP for copper exploration in Sonora. Silver Spruce received $200 K for the sale of a property outside Mexico. Azure Minerals regains control from Teck of the Alacrán property in Sonora. Goldgroup Mining and Dyna Resources presented their stances respect litigation rulings relating to the San Jose de Gracia property in Sinaloa.

ON MEXICO ISSUES

  • The Bureau of Economy (Secretaría de Economía) set the goal for the non-oil mining sector, including processing, of attracting an investment of US$ 8 billion per year. This is a steep endeavor, taking into account that in 2018 Mexico saw mining investments for US$4.55 billion, a 1.8% decrease 2017 levels, and a far cry from the 2012 record of 8 billion dollars.
  • Fresnillo PLC. received by eleventh occasion the award from Centro Mexicano para la Filantropía, which recognized the company’s compromise and adherence to national and international social responsibility practices. Fresnillo programs are focused on quality education, care and promotion of natural resources and personal development of inhabitants in neighboring communities.
  • The Mexican Core Shack saw the addition of core images from the Metates and Sirio projects, in Durango and Chihuahua respectively.

ON EXPLORATION

  • Silver Spruce Resources.  announced the granting of the drilling contract for a twelve hole program on its Pino de Plata property in Chihuahua. The rig is to be mobilized within a week.

ON MINING

  • Mag Silver Corp. released its first quarter 2019 financial results. The Juanicipio project (Zacatecas) approval was subsequent to the period end, but all principal permits have been obtained and the process plant construction is to begin immediately. Underground development continues, with over 19 km of total underground development now completed. The company estimates US$344.4 M of remaining pre-operative initial capital. As of the end of the quarter Mag Silver held US$128.6 M of cash and cash equivalents.   
  • Mexus Gold US.  announced the payment of a $111.5 K note. Furthermore, the company is looking to hire two chemists and one geologist to assist at the Santa Elena mine in Sonora (not to be mistaken with First Majestic’s Santa Elena mine, also in Sonora).  
  •  Sierra Metals Inc. presented its consolidated financial results for the first quarter of 2019. Sierra had revenue of $49.2 M and adjusted EBITDA of $12 M for the period, with record throughput at Cusi. At Bolivar, Chihuahua, cash cost was $2.04 per CuEq Lb and AISC $3.59 per CuEq Lb. At Cusi, also in Chihuahua, cash cost was $16.53 per AgEq Oz and AISC $30.57 per AgEq Oz. During the quarter the consolidated production (Mexico and Peru) was 7.7 M Lb Cu, 0.7 M Oz Ag, 16.4 M Lb Zn, 7.0 M Lb Pb. The company has a net debt of $45.0 M, holding 23.9 M in cash and cash equivalents. 
  • Americas Silver Corp. reported operational and financial results for the first quarter of 2019. The company released consolidated production figures (without disclosing the production in Mexico) of 1.8 M AgEq Oz, with a revenue of $17.8 M and net loss of $2.8 M for the quarter. The enterprise had a cash balance of $3.4 M and working capital balance of $5.2 M at the end of the period (Cosalá Complex, Sinaloa).
  • Fresnillo PLC. is setting logistics controls to reduce the probability of concentrates theft. Some of the measures taken include keeping close relations with authorities at the Federal, State and local levels; remote technological controls; physical security improvements at its Merrill Crowe plants; replacement of most security contractors, with increased controls; keeping to invest in community programs and infrastructure to back community development and support the rule of law; Suspending access to areas deemed too insecure; promoting the disclosing of criminal acts to the authorities.
  • Great Panther Mining Ltd. reported financial results for the first quarter 2019. The company completed the acquisition of Beadell Resources and its Tucano mine in Brazil in March, and most of the report refers to its impact on the company. “A project to increase Topia mining and processing capacity by 25% commenced in the first quarter of 2019 with design specifications and equipment purchases and is scheduled to be completed late in the third quarter or early in the fourth quarter”. At the end of the period the company had $41.4 M of cash and short-term deposits.  
  • Consolidated Zinc Ltd. disclosed production from its Plomosas mine in Chihuahua during the month of April, 2019. During the month 3,694 tonnes of ore were mined @ 11.66% Zn, 1.75 % Pb, for a total of 11,267 tonnes mined @ 10.7% Zn, 2.5% Pb during the first quarter 2019. Mine development was 173 meters for the month, 612 m for the quarter , with 4,737 tonnes sent to the Santa Eulalia concentrator plant, achieving a recovery of 88.9% Zn.
  • Starcore International Mines Ltd. announced production results for the fourth quarter 2019, ended on April 30, 2019. During the period 72 K tonnes were milled @ 1.8 gpt Au, 30 gpt Ag, recovering 86.03% Au, 54.56% Ag, to produce 4,093 AuEq Oz. The company stressed the 25% voluntary reduction on salary for the three top executives, same that will save $250 K annually.
  • Fortuna Silver Mines Inc. reported consolidated financial results for the first quarter 2019. During the period the company had sales of $59.0 M, net income of $2.2 M, adjusted net income of $8.4 M, adjusted EBITDA of $23.8 M and an AISC of $10.7 per AgEq Oz. At the San Jose mine in Oaxaca, 256.4 K tonnes were milled at a rate of 2,984 tonnes per day @ 267 gpt Ag, 1.71 gpt Au, recovering 91% Ag, 90% Au, to produce 2 M Oz Ag, 12,741 Oz Au at a cash cost of $6.4 per AgEq Oz and an AISC of $8.7 per AgEq Oz.

ON FINANCING

  • Alien Metals Ltd. raised £300 K, before expenses, to further exploration at its Donovan 2 project in Zacatecas.
  • Orla Mining Ltd. announced an early warrant exercise incentive program for 6.7 M warrants outstanding expiring in July 2021. Holders exercising the 2021 warrants will be entitled to receive one full new warrant. If all the 2021 warrants are exercised Orla would receive gross proceeds of $4.2 M before July 12, 2019 (Camino Rojo, Zacatecas).
  • Vangold Mining Corp. closed the second tranche of the previously announced private placement for gross proceeds of $248 K. A finder’s fee of $14.4 K and 285 K warrants was paid (Pinguico, Zacatecas).
  • Sable Resources Ltd. closed the first tranche of a non-brokered private placement to raise aggregate gross proceeds of $863 K (Margarita, Chihuahua).
  • Almaden Minerals Ltd. entered into a secured gold loan agreement with Almadex Minerals Ltd. for up to 1,597 Oz Au, or approximately US$2 M. “The interest rate of the Gold Loan is 10% of the Loan Value per annum, paid in arrears. Interest payments can either be accrued to the Loan Value, or paid by the Borrower in cash or gold” (Ixtaca, Puebla).
  • First Mining Gold Corp. upsized and closed the previously announced private placement, raising aggregate proceeds of $7.41 M (San Ricardo, Sonora; Lachatao, Oaxaca).

ON RESOURCES AND DEVELOPMENT

  • Fresnillo PLC and Mag Silver Corp. received approval from their respective boards for development of the Juanicipio mine in the Fresnillo district, Zacatecas. Fresnillo is to be the operator in the Fresnillo-Mag JV (56% and 44% respectively), with construction to begin immediately and completion expected for late 2020. The mine is anticipated to produce annually 11.7 M Oz Ag, 43.5 K Oz Au, with an initial mine life of 12 years. The estimated pre-operative Capex is $US395 M, estimating the creation of 2,750 jobs during construction and 1,720 jobs at full production.
  • Premier Gold Mines Ltd. announced the expansion of the Lupita-Diluvio resource area and a 3 km corridor that step-out exploration has identified. New mineralized veins have been discovered at San Martin and Margarita, outlining a 3 km corridor, while Lupita vein extension drilling returned multiple intercepts including 3.9 m @ 5.99 gpt Au, 41 gpt Ag; 2.9 m @ 5.70 gpt Au, 56 gpt Ag. Ongoing delineation program at Lupita intersected high-grade intercepts including 1.2 m of 10.75 gpt Au, 89 gpt Ag. At Diluvio West one delineation hole returned 30.4 m @ 6.43 gpt Au, 12 gpt Ag including 4.4 m @ 13.79 gpt Au, 22 gpt Ag.
  • GoGold Resources Inc. released results from two more diamond drill holes collared at its Los Ricos project in Jalisco. The program includes twining of old RC holes, returning higher grades than the previous holes, like 21.2 m @ 7.66 gpt Au, 1,270 gpt Ag (previously 20.0 m @ 3.20 gpt Au, 845 gpt Ag), including 6.9 m @ 21.97 gpt Au, 3,718 gpt Ag (previously 6.0 m @ 9.00 gpt Au, 2,608 gpt Ag); 18.8 m @ 0.37 gpt Au, 68 gpt Ag, including 4.5 m @ 0.96 gpt Au, 119 gpt Ag.
  • SilverCrest Metals Inc. released and filed the results from a preliminary Economic assessment (PEA) on its Las Chispas project in Sonora. The study displays a 1,250 tonnes per day (tpd) production rate at 411 gpt AgEq with an initial mine life of 8.5 years to produce annually an average of 5.38 M Oz Ag, 55,700 Oz Au at AISC of $7.52 per AgEq Oz. The Capex is $100.5 M with a payback period of nine months with an after-tax IRR of 78%, after-tax NPV of $406.9 M and cumulative undiscounted net free cash flow of $522.5 M. The PEA estimates a diluted resource of 3.86 M tonnes @ 4.05 gpt Au, 411 gpt Ag, or 714 gpt AgEq, containing 502,200 Oz Au and 51 M Oz Ag, or 88.7 M Oz AgEq with estimated average mining dilution of 33%.
  • Goldplay Exploration Ltd. announced a 5,000 m drilling campaign on its San Marcial property in Sinaloa. The focus of the campaign is on the Faisanes and Nava targets, and to check on newly discovered zones along the Faisanes-Nava corridor. The company is anticipating a Phase II drilling campaign late in 2019 with the secondary objective of test eight exploration targets along a 6 km trend outside of the San Marcial resource area.

ON DEALS AND CORPORATE ISSUES

  • Riverside Resources Inc. signed a two-year US$2 M exploration financing agreement with BHP Exploration Chile SpA. for the funding of generative exploration in the copper producing belt of Mexico. BHP is to fund US1 M on an annual basis for a minimum of two years for generative grass-roots exploration within northeastern Sonora. Properties deemed of interest will become Defined Projects (DPs) and will be funded up to $5 M of exploration work. Riverside is to receive a success fee of US$200 K for each DP, with a $200 K bonus if three properties become DPs. If a DP goes to the Joint Venture stage (Riverside 20%), Riverside is to receive a $1.5 M bonus, and can sell its interest to BHP if elects not to continue on the JV (Tajitos, Sonora; El Capitan, Durango).
  • Silver Spruce Resources Inc. received a $200 K cash payment from Croesus Gold Corp. for the sale of the Kay mine project. After a go-public transaction is completed, Croesus is to  pay Silver Spruce a  final cash payment of $150 K, no later than July 15, 2019 (Pino de Plata, Chihuahua).
  • Azure Minerals Ltd. accepted a right of first offer proposal by Teck Resources Ltd to consolidate ownership of the Alacrán project in Sonora. Azure will retain 100% ownership of the project by issuing to Teck a number of common shares that would result in Teck owning 19.9% of Azure’s outstanding shares on a post-issuance basis, a 0.5% NSR royalty on the project, and a participation right on the proceeds of any sale of the project within a five year period.
  • Goldgroup Mining Inc. announced a final judgement in the United States Disctrict Court for the District of Colorado confirming Goldgroup’s previously announced favorable award in the arbitration against DynaUSA, Inc., ruling DynaUSA having to pay Goldgoup $1.53 M. In addition, the jurisdictional ruling from a Mexico City court that ruled in favor of DynaUSA was challenged in Mexico by Goldgroup and is still pending resolution (Cerro Prieto, Sonora)
  • DynaResource Inc. issued a response to news released by Goldgroup Mining Inc. (see above) in which the United States district court for the district of Colorado confirmed the August 2016 Arbitration award against DynaResource, same that intends to appeal the district court’s May 9 decision. Dyna describes in this news release three different favorable rulings in Mexican courts, same that award Dyna $48 M in damages to be covered by Goldgroup (San Jose de Gracia, Sinaloa).

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

On the image below, quartz-chalcopyrite veinlet hosted by an intrusive rock in core from a project in Michoacan. Picture by Jorge Cirett.

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

Flow banding rhyolite

By Miguel A Heredia

During the seventeen week of the year (May 06th to May 12th, 2019), at least 41 press releases were announced by companies working in Mexico, with fourteen communicating financial and production results, ten disclosing deals and corporate issues, seven reporting on resources and development of their properties, five informing on exploration results, three discussing Mexican news, and two announcing financing rounds.  ON MEXICO ISSUES, Mining Chamber of Mexico (CAMIMEX) demanded the authorities to act in the illegal blockade at the Peñasquito mine by a transport company called CAVA.  ON EXPLORATION, In Sonora, Aloro announced that it will resume drilling at its Venados project, Azure released drilling results from its Alacran project, and Colibri received historical assays from Santa Catalina Mining’s Pilar Exploration.  In Chihuahua, Silver Spruce and Radius Gold announced exploration results from its Pino de Plata and Amalia projects respectively.  ON MINING, Alio, Avino, Endeavour, Excellon, First Majestic, GoGold, Gold Resource, Hecla, Leagold, Pan American, Premier, Santa Cruz, Torex, and US Antimony presented Q1 2019 production and financial results from their Mexican operations. Endeavour also released its 2018 annual review and sustainability report. ON FINANCING, Defiance closed the final tranche of its previously announced private placement in the amount of $280,230 (San Acacio project, Zacatecas). Megastar closed a non-brokered private placement in the amount of $672,600 (Yautepec, Magdalena, and Rama de Oro projects, Oaxaca). ON RESOURCES AND DEVELOPMENT, Southern Silver updated mineral resources at its Cerro Las Minitas project in Durango. Azure increased mineral resources at its Oposura project in Sonora. Hecla reported positive exploration results from its San Sebastian mine in Durango. Mexus Gold started blast hole drilling at its Santa Elena mine in Sonora to initiate ore production. Premier announced high grade intersects from the underground drilling program carried out at the Marianas zone within its Mercedes mine in Sonora. US Antimony reported a doubling of its Mexican smelting. Goldplay released exploration results from its San Marcial project in Sinaloa. Endeavour filed an updated technical report for its Terrroneras project in Jalisco with mineral resource and reserve estimate.  ON DEALS AND CORPORATE ISSUES, Alamos Gold (Mulatos mine, Sonora), Argonaut (El Castillo mine, Durango), Endeavour (Guanacevi mine, Durango), and Leagold (Los Filos mine, Guerrero) announced results from their annual general meeting of shareholders. Oroco confirmed favourable court decision on the Santo Tomas concession in Sinaloa. Defiance appointed new Director and Executive Chairman (San Acacio project, Zacatecas). Sable announced that the TSX accepted for filing the documentation of its option agreement on the Margarita project in Chihuahua with Minas Guilloyna and Minera La Perla.

 ON MEXICO ISSUES

  • Mining Chamber of Mexico (CAMIMEX), demanded the authorities to act in the conflict between Peñasquito and a transport company called CAVA. The company declared that the illegal blockade which started more than a month ago, harms entire families and the productive chains of the region. CAMIMEX also stated that is essential that mining companies in the country can work without being subject to illegal pressures and, like any industry that develops in the country, their demands are met promptly through legal channels and attached to the rule of law. The company initiated the suspension of payments to employees and unionized workers, contractors, suppliers and communities. However, the company is willing to help unlock this situation that affects 20 thousand people who work directly or indirectly for the mine.
  • Mexico mining exploration, registered its lowest investment in 12 years. The mining exploration investment in Mexico during 2018 reached USD $383M, which represented a year-on-year decrease of 37.4% and its weakest level in the last 12 years, according to data from the Mining Chamber of Mexico (CAMIMEX).

ON EXPLORATION

  • Aloro Mining Corp., announced that soon it will resume drilling at its Los Venados project in Sonora. The drilling plan will consist of 1,200m in four holes and will be focused on the blind target discovered by hole LVRC-012 which intersected 32m of blind strong silicic alteration containing 1.72 g/t Au over 4.57m, interpreted as the margin of a concealed felsic dome.
  • Azure Minerals Limited, released drilling results from its Alacran project in Sonora, where its JV partner Minera Teck completed 21 holes phase 2 diamond drilling campaign for 10, 540m. 16 of the drill holes targeted porphyry-style copper mineralization at Cerro Alacrán prospect, while the remaining 5 holes targeted epithermal-style precious metal mineralization at Cerro San Simon and Cerro Colorado areas. This phase of drilling confirmed the existence of porphyry copper mineralization with broad zones of visible chalcopyrite intersected. Significant drill intersections include hole ALA-18-001 with 0.17% Cu over 118m; hole ALA18-003 with 0.25% over 131.7m; hole ALA-18-011 with 0.19% Cu over 137m; and hole ALA-18-014 with 0.21% over 177.3m.
  • Colibri Resource Corporation, purchased historical assays results for 8,000 samples collected on the Pilar Gold project in Sonora by Santa Catalina Mining in the 90´s. Highlights include a series of 11 consecutive assays reporting 285.12 g/t Au, 45.53 g/t Au, 195.5 g/t Au, and 51.91 g/t Au which have been interpreted to correspond with hole S-10. This hole intersected 54.47 g/t Au over 16.5m, and is located in the North Hill Zone; a series of 9 consecutive assays including an intersection of 80.3 g/t Au, interpreted to correspond with hole Q-8b. This hole intersected 9.64 g/t Au over 13.5m; and another series of 6 consecutive assays including 0.54 g/t Au, 8.52 g/t Au, 20.66 g/t Au, 16.23 g/t Au, and 6.97 g/t Au, interpreted to correspond with hole P-9b located in the Main Zone, which encountered 10.16 g/t Au over 9m.
  • Silver Spruce Resources inc., completed field work at its Pino de Plata project in Chihuahua. The field program expanded areas of intrusive-related alteration and mineralization to > 50 hectares; confirmed that high silver grades are present on surface at El Terrero and Gossan areas; added three new vein targets at La Perla, Santa Clara and El Muro vein systems; and refined drill collar locations and orientations to optimize targeting. The company announced that eight targets were identified for drill testing: “gossans in the Gossan zone, skarn/replacements at Santa Elena, the Terrero mine target, the La Perla vein and associated alteration zone, the Santa Clara vein, the Theodora vein, the Sierpe veins and associated alteration, and the newly defined Muro vein.” The company holds a drill permit for 30 holes but only plans to drill 12 holes for an estimated of 2,000m during the phase 1.
  • Radius Gold Inc., provided an update of its ongoing drilling program at its Amelia project in Chihuahua. Radius has completed three drill holes proximal to hole AMDD19-010 which encountered 12.38 g/t Au and 309 g/t Ag over 34m of true width. Hole AMDD19-011 intersected 97m of “varying intensity quartz veins, stockwork veining and diorite dykes”; hole AMDD19-012 intersected a zone of 53m of “alteration including variable stockworks, silicification and hydrothermal breccias”; and hole AMDD19-013 intersected 17m of “moderate to strong silicification, tectonic breccia with micro vein stockworks and traces of fine sulphides”. Assays for these holes are pending.

ON MINING

  • Alio Gold Inc., announced Q1 2019 financial and production results from its San Francisco mine in Sonora. Alio produced 10,968 Oz Au and 6,274 Oz Ag. It is less compared with Q1 2018. The by-product cash cost and AISC in Q1 2019 was $884 and $1,137 per Oz. The reason of the lower production at San Francisco mine is due to the decision to stop active mining in the San Francisco pit and focus on continuing leaching and processing the low grade stockpile.
  • Avino Silver & Gold Mines Ltd., reported Q1, 2019 production and financial results from its Avino mine in Durango. The company milled 197,687 tonnes to produce 268.4K Oz Ag, 1,813 Oz Au and 1.1M Lb Cu (over 615K Oz AgEq) with a cash-cost and AISC of USD $11.44 and USD $13.81 per Oz AuEq produced. Avino reported revenues for USD $6.7M, an EBIDTA of USD $49M, and a net income (loss) of USD $610M.
  • Endeavour Silver Corp., announced Q1 2019 production and financial results from its four Mexican operations: Bolañitos and El Cubo mines in Guanajuato, Guanacevi in Durango, and El Compas in Zacatecas. It produced 1.07M Oz Ag, 10K Oz Au (or1.9M Oz AgEq), with a cash cost and AISC of $12.55 and $19.37 per Oz Ag payable (net of Au credits). It also presented its 2018 annual review and sustainability report. 2018 Sustainability highlights include the investment of $400K in corporate charitable donations, focused on education, employment, health, infrastructure, and cultural events in Mexico and Canada; plantation of 53,000 trees in reforestation projects to reclaim disturbed ground; and the recycle of over 93% of water used; the investment of $1.7M in environmental protection programs. The company also reported that 99% of its workforce is Mexicans, spending $42M in employee wages and benefits; spent $181.1M on goods and services, 97% of total procurement is from within Mexico; and paid $10.2M in taxes.
  • Excellon Resources Inc., released Q1 2019 production and financial results from its la Platosa mine in Durango. The company processed 18,219 tonnes of 534 g/t Ag, 5% Zn, and 8% Pb to produce 260.4K Oz Ag, 1.37M Lb Zn, and 2.2M Lb Pb, with metallurgical recoveries of 89.7%, 74.6%, and 78.1% respectively. Cash cost and AISC were USD $11.71 and USD $25.35 respectively. The company reported revenues for USD $5.2M and a net loss of USD $602K.
  • First Majestic Silver Corp., presented Q1 2019 production and financial results from their Mexican operations. The company milled 812,654 tonnes to produce 3.3M Oz Ag or 6.3M Oz AgEq, with a cash cost and AISC of $6.34 and $12.91 per Oz Ag payable, and reported revenues for $86.8M, and net earnings of $2.9M. A distribution by mine is shown in the table below:

  • GoGold Resources Inc., announced Q1 2019 production and financial results from its Parral tailings project in Chihuahua. It stacked 478,874 tonnes to produce 414.2K Oz AgEq, with cash cost of USD $13.61 and an AISC of USD $13.61 per Oz AgEq produced. GoGold reported revenues for USD $7.03M, an EBIDTA of USD $1.86M, and a net loss income of USD $2,44M.
  • Gold Resource Corporation, released Q1 2019 production and financial results from their mine operations in Oaxaca. The company processed 165,638 tonnes of 1.26 g/t Au and 226 g/t Ag to produce 6,538 Oz Au and 364.6K Oz Ag. Cash cost and AISC of USD $340 and USD $834 per Oz AuEq produced respectively. Gold Resource reported revenues for USD $26.57M, and net income of USD $0.88M.
  • Hecla Mining Company, reported Q1 2019 production and financial results from its San Sebastian mine in Durango. The mill operated at an average of 494 tonnes per day to produce 441K Oz Ag and 3,530 Oz Au, at a cash cost and AISC of $11.23 and $16.55 per Oz Ag produced respectively.
  • Leagold Mining Corporation, announced Q1 2019 production and financial results from its Los Filos mine in Guerrero. The company produced 64K Oz Au at an AISC of USD $797 per Oz Au sold. Los Filos underground is now producing at over 1,900 tonnes per day with cost below USD $80 per tonne of ore.
  • Pan American Silver Corporation, presented Q1 2019 production and financial results from their Mexican operations. At its La Colorada mine in Zacatecas, the company produced 2M Oz Ag and 1K Oz Au at cash cost of USD $2.16 per Oz Ag produced and an AISC of USD $3.37 per Oz Ag produced. At its Dolores mine in Chihuahua, the company produced 1.1M Oz Ag and 30K Oz Au at cash cost of USD $3.34 and AISC of USD $26.45.
  • Premier Gold Mines Limited, reported Q1 2018 production and financial results from its Mercedes mine in Sonora. It milled 178,771 tonnes of 3.18 g/t Au and 27 g/t Ag to produce 17.6K Oz Au and 57.7K Oz Ag at a cash and IASC of USD $806 and $1,105 per Oz Au sold respectively. Premier reported revenues for USD $23.1M and mine operating income of USD $3.7M.
  • Santacruz Silver Mining Ltd., announced Q1 2019 production and financial results from their Mexican operations. At its Veta Grande mine in Zacatecas, the company processed 32,625 tonnes of 119 g/t Ag, 0.19 g/t Au, 0.8% Pb, and 1.9% Zn,  to produce 79.6K Oz Ag, 97 Oz Au, 488.3K Lb Pb, and 1.1M Lb Zn. At its Rosario mine in San Luis Potosi, the company  milled 10,279 tonnes of 47 g/t Ag, 0.3% Pb, and 2.1% Zn to produce 14K Oz Ag, 61 Oz Au, 60.5K Lb Pb, and 407.7K Lb Zn.
  • Torex Gold Resources Inc., presented Q1 2019 production and financial results from its El Limon-Guajes Mining Complex in Guerrero. Torex produced 77.8K Oz Au at an average grade of 2.45 g/t Au. Cash cost and AISC per Oz Au sold were USD $745 and USD $1,161 respectively. It reported revenues for USD $101.9M and earnings from mine operation of USD $16.8M.
  • US Antimony, produced during Q1 2019 approximately 69,000 Lb per month from its Mexican operations (Wadley mine in San Luis Potosi and Guadalupe mine in Zacatecas).

ON FINANCING

  • Defiance Silver Corp., closed the final tranche of its previously announced private placement in the amount of $280,230. In total, Defiance raised $2,567,620 in its private placement (San Acacio project, Zacatecas).
  • Megastar Development Corp., closed a non-brokered private placement in the amount of $672,600. Gross proceeds of the financing will be used to advance exploration on multiple properties within the Oaxaca, Mexico Au-Ag belt as optioned from Minera Zalamera S.A. de C.V. (Yautepec, Magdalena and Rama de Oro projects, Oaxaca).

ON RESOURCES AND DEVELOPMENT

  • Southern Silver Exploration Corp., announced a new mineral resource estimate at its Cerro Las Minitas project in Durango. Indicated resources are 11,102,000 tonnes of 105 g/t Ag, 0.16% Cu, 1.2% Pb, 3.7% Zn, and 0.1 g/t Au to contain 37.5M Oz Ag, 40M Lb Cu, 303M Lb Pb, 897M Lb Zn, and 35K Oz Au (133.9M Oz AgEq or 2B Lb ZnEq). Inferred resources are 12,844,000 tonnes of 111 g/t Ag, 0.27% Cu, 0.9% Pb, 2.8% Zn, and 0.07g/t Au to contain 45.7M Oz Ag, 76M Lb Cu, 253M Lb Pb, 796M Lb Zn, and 31K Oz Au (138.1M Oz AgEq or 2.04B Lb ZnEq).
  • Azure Minerals Limited, expanded mineral resources at its Oposura project in Sonora. The new mineral resource estimate is based on 173 diamond holes totaling 11,109m drilled on phase 1 and 58 diamond holes totaling 4,567m drilled on phase 2. Indicated resources are 2.5M tonnes of 5.3% Zn, 2.9% Pb, and 19 g/t Ag, and inferred resources of 0.6M tonnes of 3.4% Zn, 2.1% Pb, and 15 g/t Ag. Total mineral resources are 3.1M tonnes at grades of 5% Zn, 2.7% Pb, and 18 g/t Ag containing 342.7M Lb Zn, 188.2M Lb Pb, and 1.78M Oz Ag. In addition, reconnaissance drilling in the Central Zone has encountered near-surface, high-grade mineralization. Drilling highlights include hole OPDH-173 which intersected 7.7% combined Zn+Pb over 12m, including 12.5% combined Zn+Pb over 4.1m, and hole OPDH-178 with 18.9% combined Zn+Pb over 9.5m, including 26.6% combined Zn+Pb over 6.2m. Azure is planning additional drilling to further increase mineral resources in the Central Zone, to the north of the deposit and within the wider property.
  • Hecla Mining Company, reported positive exploration results from its San Sebastian mine in Durango. The company obtained encouraging drill results at the Middle Vein area, including 6,422 g/t Ag and 24.57 g/t Au over 1.86m. This drilling phase has increased the oxide mine life through upgraded resource in the Middle Vein. In addition, Hecla defined near-surface mineralization at the new El Toro area over 1.5km along strike and from surface up to 150m at depth. Drilling highlights at El Toro area include 750 g/t Ag and 4.9 g/Au over 1.8m, and 666 g/t Ag and 10.9 g/t Au over 1.3m.
  • Mexus Gold US, started blast hole drilling on the Julio vein system at its Santa Elena mine in Sonora to produce the ore necessary to initiate steady production. The material being drilled has been sampled and is averaging 4 g/t Au and 12 g/t Ag. “Mexus currently has over 12,000 tons of ore stockpiled and ready to mine which was a result of the preparation of the pit on the Julio vein”.
  • Premier Gold Mines Limited, released high grade intersects from underground drilling carried out at the Marianas zone within its Mercedes mine in Sonora. Significant results were in hole UG-MR19-011 with 4.96 g/t Au and 71 g/t Ag over 31m, including 25.65 g/t Au and 171 g/t Ag over 3.1m, hole UG-MR-19-007 with 4.51 g/t Au and 64 g/t Ag over 20.5m, including 11.04 g/t Au and 94 g/t Ag over 3.8m, and hole UG-MR10-010 with 7.29 g/t Au and 8 g/t Ag over 3.5m. “The Marianas Zone comprises the down-plunge extension of the main Mercedes mine trend. Previous surface drilling suggests Marianas has the potential to host economic mineralization of higher than the current reserve grade. It is the Company’s goal to convert a portion of Marianas mineral resources to mineral reserves with a delineation drill program during the balance of 2019. Ore development could commence in 2020”.
  • US Antimony, reported a doubling of its Madero, Coahuila Mexican smelter capacity with the startup of No.2 long rotary furnace. This is expected to double Mexican production by the end of Q2 due to the increased output of its Wadley mine in San Luis Potosi and its Guadalupe mine in Zacatecas.
  • Goldplay Exploration Ltd., released trenching results from the Nava Zone located 1.5 km to the west of its San Marcial NI 43-101 silver resource, supporting an attractive mineralized corridor for discoveries and potential resource expansion. Wide zones of up to 1.5 g/t Au were encountered during the trenching sampling. Significant results include 0.7 g/t Au over 40m, including 1.9 g/t Au over 6m.
  • Endeavour Silver Corp., filed an updated technical report for its two deposits at the Terroneras project in Jalisco with mineral resource and reserve estimate. Indicated resources at Terroneras are 5,275,000 tonnes of 227 g/t Ag and 2.35 g/t Au to contain 38.5M Oz Ag and 398K Oz Au. Inferred resources are 1,022,000 tonnes of 212 g/t Ag and 1.7 g/t Au to contain 6.97M Oz Ag and 56K Oz Au. Indicated resources at La Luz are 126K tonnes of 192 g/t Ag and 13.6 g/t Au to contain 779K Oz Ag and 55K Oz Au. Inferred resources at La Luz are 58K tonnes of 145 g/t Ag and 12.15 g/t Au to contain 269K Oz Ag and 23K Oz Au. Probable combined mineral reserves of Terroneras and La Luz are 5,587,000 tonnes of 208 g/t Ag and 2.33 g/t Au to contain 37.44M Oz Ag and 419K Oz Au (mineral resources are inclusive of mineral reserves).

ON DEALS AND CORPORATE ISSUES

  • Alamos Gold Inc., announced results from its annual general meeting of shareholders (Mulatos mine, Sonora), and the retirement of one of its Directors and the appointment of its replacement.
  • Argonaut Gold Inc., released voting results from its annual general meeting of shareholders (El Castillo mine, Durango).
  • Endeavour Silver Corp., announced results from its annual general meeting of shareholders, and the appointment of its newest Director (Guanacevi mine, Durango).
  • Great Panther Mining Limited, announced the appointment of a new Director (Topia mine, Durango).
  • Leagold Mining Corporation, presented voting results from its annual general meeting of shareholders (Los Filos mine, Guerrero).
  • McEwen Mining Inc., announced two management changes: its new CFO and the General Manager for its Nevada operation (Fenix project, Sinaloa).
  • Oroco Resource Corp., confirmed that a favourable court decision on the Santo Tomas concession has been received by its Mexican legal council. The company also announced that a criminal complaint against Aztec and its president Ron Arnold has been field with the Procuraduría General de Justicia de la Ciudad de Mexico (Santo Tomas project, Sinaloa).
  • Defiance Silver Corp., appointed new Director and Executive Chairman (San Acacio project, Zacatecas).
  • Sable Resources, announced that the TSX accepted the file documentation of its option agreement on the Margarita project in Chihuahua with Minas Guilloyna and Cia. Minera La Perla. Sable can earn 100% right, title, and interest in the Margarita project by satisfying the CAD $3.5M purchase price through the issuance of shares or cash or a combination of both over a three years period. To date, Sable has paid CAD $50K in cash and issued 200K shares (CAD $30K) to vendors during the execution of the agreement, issued 500K shares or cash equivalent (CAD $470K) on May 30, 2018), and has to issue CAD $500K worth of shares or cash equivalent on or before May 30, 2019, CAD $500K worth of shares or cash equivalent on or before November 30, 2019, and CAD $2M worth of cash or shares on or before May 30, 2020.

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, flow banding rhyolites at a locality in Guanajuato, Mexico.  Photo by Miguel A Heredia.