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The Mining and Exploration News in Mexico: Highlights on the Third Week of February 2025

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By Jorge Cirett

During the 8th week of the year (February 17th to February 23rd, 2025), companies working in Mexico presented 28 press releases. Two companies informed on exploration on their properties and nine companies presented quarterly and full year 2024 reports. Two companies informed on financing rounds and two more about its inclusion on the list of top performing TSX companies. One company released the 2024 MRE for several deposits, while one more filed a previously released MRE. Three companies released drilling results from their advanced companies and one more elaborated on its plans for 2025. Two companies announced senior board position changes. ON MEXICO ISSUES, no relevant news. ON EXPLORATION, in Chihuahua, Kingsmen Resources completed a review on the geochemistry of surface samples. In Durango, Silver Wolf Exploration released results from drilling at Ana Maria. ON MINING, Sandstorm Gold, Pan American Silver, Alamos Gold, Coeur Mining, Torex Gold, Capstone Copper, Starcore International, First Majestic Silver and Newmont presented Q4 and full year 2024 reports. ON FINANCING, Quetzal Copper and Tocvan Ventures informed on the closing of financing tranches for C$487.5 K and C$1.05 M respectively. Luca Mining and Heliostar Metals informed on its inclusion on the list of top performing companies in the TSX. ON RESOURCES AND DEVELOPMENT, Alamos Gold presented the MRE for five properties within the Mulatos district in Sonora. Prime Mining disclosed its 2025 program for Los Reyes, in Sinaloa. Endeavour Silver reported drilling results from La Luz area at its Bolañitos producing property in Guanajuato. Vizsla Silver filed the MRE report on Panuco, in Sinaloa. Luca Mining released results from drilling at Tahuehueto, in Durango. Heliostar Metals reported results from the drilling program at Ana Paula, in Guerrero.  ON DEALS AND CORPORATE ISSUES, Centenario Gold and US Antimony announced movements on their boards of directors. ON SOCIAL RESPONSIBILITY, Guanajuato Silver Co. informed on diverse initiatives it is taking on the communities nearby to its operations in Durango and Guanajuato.

ON MEXICO ISSUES

  • No Relevant News.

ON EXPLORATION

  • Silver Wolf Exploration Ltd. announced results of the drill program on El Soldado claim at the Ana Maria project in Durango. A total of 17 holes and 2,560 m were drilled, testing the continuity of the carbonate replacement deposits and breccia structures observed. Highlighted core length intercepts comprise 1.0 m @ 1.91% Zn; 6.05 m @ 0.25% Pb, 0.45% Zn (including 0.85 m @ 52 gpt Ag, 0.4% Pb, 2.2% Zn). The “inaugural drill program was successful in identifying significant subvertical breccias (“Chimney” bodies) with extensive hydrothermal mineralization and dolomitization underlying the historical Silver, Lead, and Zinc (Ag-PbZn) workings at El Soldado”. The Ana Maria project is adjacent to the significant past producer Ojuela mine.
  • Kingsmen Resources Ltd. completed a review of the geochemistry of samples collected from the Soledad and Soledad II vein systems at its Las Coloradas project in Chihuahua. The variations of pathfinder elements with silver are interpreted to indicate different pulses of mineralization. The potential for intrusion-related and skarn mineralization has not been explored to date.

ON MINING

  • Sandstorm Gold Ltd. released its financial results for the quarter and year ended in December 2024. Without disclosing by operation, the company had a total yearly revenue of US$176.3 M, or 72,810 Oz Au (holds royalties on Cosalá, Sinaloa).
  • Pan American Silver Corp. provided fourth quarter and yearly 2024 results and its outlook production for 2025. The company generated US$196.2 M in cash flow in Q4 and US$445.1 M in 2024, producing 21.1 M Oz Ag, 892.5 K Oz Au in the year at $14.30 per Oz Ag and $1,203 per Oz Au in the year. At the end of the period Pan American had a working capital of US$1,033.4 M, inclusive of cash and short-term investments of US$887.3 M, and a total debt of US$803 M. For 2025 the company forecasts production of 5.5 – 5.8 M Oz Ag at La Colorada in Zacatecas and 0.9 – 1.0 M Oz Ag, 28 – 31 K Oz Au at Dolores, in Chihuahua.
  • Alamos Gold Inc. reported Q4 and full year 2024 results. The company produced 567 K Oz Au in 2024, at total cash cost of $927 per Oz Au and an AISC of $1,281 per Oz Au. At Mulatos, in Sonora, 205 K Oz Au were produced in the year. Cash and cash equivalents of US$327.2 M at the end of 2024.
  • Coeur Mining Inc. announced Q4 2024 and full year financial results. During the year the company produced 341,852 Oz Au, 11.4 M Oz Ag at cash cost $1,203 per Oz Au and $16.55 per Oz Ag. Coeur generated US$1.1 B in revenue in 2024. Closed on February 14, 2025, the 1.58 B acquisition of SilverCrest Metals (Las Chispas, Sonora). Guidance of 16.7-20.3 M Oz Ag, 380,000-440,000 Oz Au for 2025. At Palmarejo, in Chihuahua, 1.76 M tonnes were milled in 2024, averaging 2.18 gpt Au, 141 gpt Ag, recovering 93% Au, 85% Ag, to produce 108,666 Oz Au, 6.78 M Oz Ag, at cash cost $892 per Oz Au, $14.28 per Oz Ag, generated US$138.1 M in cash flow, while investing US$13.2 M in exploration. “Seven rigs were active during the quarter, with three rigs focused on step-out drilling along the western extension of the Hidalgo corridor. A new mineralized structure discovered in 2024 called the Libertad Footwall has demonstrated splays and breccias similar to those contained at Guadalupe and Independencia. Exploration drilling successfully traced these Libertad structures over 750 meters along strike. In addition, the 2024 drill program at Hidalgo and Libertad was a significant contributor to inferred resource growth. Successful exploration also led to a maiden resource at the San Juan target and an extension of the Guadalupe zone”.
  • Torex Gold Resources Inc. reported Q4 and full year 2024 financial and operational results. Annual production was 452,523 Oz Au (or 461,420 Oz AuEq), with a gold recovery of 90.6%, total cash cost of $940 per Oz Au and an AISC of $1,156 per Oz Au.  Achieved a mining rate of 2,092 tonnes per day from ELG (El Limon-Guajes) underground. Net income of US$134.6 M, adjusted net earnings of US$224.3 M and readjusted EBITDA of US$541.1 M, with net cash generated from operating activities of US$449 M. Negative free cash flow of US$122.9 M as a direct result of US$449.0 M invested in the Media Luna project, which stood at 94% completion at the end of the period. Closed the year with US$331.5 M, including US$110.2 M in cash and US$221 available on credit facilities (Morelos Complex, Guerrero).
  • Capstone Copper Corp. informed on financial results for Q4 and full year 2024. The company had a net income in 2024 of US$82.9 M, an adjusted EBITDA of US$496 M, operating cash flow of US$414.8 M, net debt of US$742.0 M, availability of US$506.4 M comprising US$132.4 M in cash and US$374 M on a credit facility. The consolidated copper production in 2024 was 184,460 tonnes of Cu at cash cost $2.56 per Lb Cu. At Cozamin, in Zacatecas, 24,907 tonnes of copper were produced during the period, at cash cost $1.75 per Lb Cu (the lowest for Capstone operations).
  • Starcore International Mines Ltd. announced production results for the third quarter 2025, ended January 2025. At San Martin, in Querétaro, 46.7 K tonnes were milled, averaging 1.74 gpt Au, 11.08 gpt Ag, recovering 82.44% Au, 49.1% Ag, to produce 2,268 Oz AuEq.
  • First Majestic Silver Corp. announced consolidated financial results for Q4 and full year 2024. The company produced 8.4 M Oz Ag, 156,542 Oz Ag (or 21.7 M Oz AgEq), realized US$138.6 M in free cash flow, with revenues of US$560.6 M, EBITDA of US$127.1 and ended the year with 2,595 Oz Au, 539.2 K Oz Ag valued at US$22.4 M. On January 16, 2025 the company completed the acquisition of Gatos Silver Inc. for a consideration of US$1.07 M in shares.
  • Newmont Corp. reported fourth quarter and full year 2024. The company reported US$3.4 B of net income in 2024, generated US$6.4 B of cash from operating activities, reported US$2.9 B in free cash flow, produced 5.7 M Oz Au and 1.9 M Oz AuEq (Cu, Ag, Pb, Zn) for a total of 6.8 M attributable Oz Au. During the year Peñasquito (in Zacatecas) produced 390 K Oz Au, 28 M Oz Ag, 90 K tonnes Pb, 236 K tonnes Zn. Cash cost was $930 per Oz Au, $11.50 per Oz Ag, $1,080 per Lb Pb, $1,430 per Lb Zn. The AISC was $1,210 per Oz Au, $15.0 per Oz Ag, $1,290 per Lb Pb, $1,890 per Lb Zn. The cash cost and the AISC are expected to increase during 2025. “Peñasquito gold production is expected to increase in 2025, as mining is expected to be from the higher gold content Peñasco pit for the first half of 2025.Gold production in 2025 is expected to be approximately 60 percent weighted to the first half of the year… co-product production of silver, lead and zinc is expected to decline from 2024 levels due to reduced mining in the Chile Colorado pit as this polymetallic mine progresses through its planned sequence”.

ON FINANCING

  • Quetzal Copper Corp. closed the third tranche of a previously announced non-brokered flow-through and non-flow-through private placement, for gross proceeds of C$487.5 K. In total the company raised gross proceeds of C$2.44 M (Las Cristinas, Chihuahua).
  • Quetzal Copper Corp. announced the extension to complete its previously announced non-flow-through portion of its non-brokered private placement, until February 28, 2025 (Las Cristinas, Chihuahua).
  • Luca Mining Corp. informed on its inclusion in the 2025 TSX Venture 50TM list of top performing companies (Tahuehueto, Durango; Campo Morado, Guerrero).
  • Tocvan Ventures Corp. closed the final tranche of its previously announced non-brokered private placement for gross proceeds of C$1.05 M (Pilar and Gran Pilar, Sonora).
  • Teck Resources Ltd. has declared “an eligible dividend of $0.125 per share on its outstanding Class A common shares and Class B subordinate voting shares, to be paid on March 31, 2025 to shareholders of record at the close of business on March 14, 2025” (San Nicolás, Zacatecas).
  • Heliostar Metals Ltd. announced it has been included in the 2024 TSX Venture 50TM list of top performing companies (Ana Paula, Guerrero; La Colorada, Sonora).
  • Alamos Gold Inc. reported mineral reserves and resources to the end of 2024. Of a total of 13.95 M Oz Au in reserves by the company, 1.39 M stand in the Mulatos district in Sonora. The total amount of reserves and resources at Mulatos is 2.13 M Oz Au, distributed in the Mulatos mine, Puerto del Aire, La Yaqui Grande, Cerro Pelon and Carricito deposits, as can be seen below. The project is heading to more underground operations with the Puerto del Aire and Cerro Pelon higher grade sulfides. A total of US$19 M is budgeted for exploration in 2025, including 15,000 m of drilling at the GAP-Victor area and PDA extension, and 20,000 m planned at Cerro Pelon.
  • Prime Mining Corp. disclosed its 2025 outlook for its Los Reyes project in Sinaloa. An initial 40,000 m of drilling is planned to identify extensions to know structures and further discovery areas, working toward a preliminary economic assessment (PEA), “refining the metallurgical, geotechnical, mine planning and development parameters for project development, including process and underground mining optimization, infrastructure assessment and permitting requirements”.  Drilling halted in late January due to safety issues on large areas of Sinaloa, but due to resume as soon as these concerns ease, with the drill rigs are still on-site. In October of last year Prime filed a mineral resource estimate with 2.19 M Oz AuEq in indicated resources and 817 K AuEq in inferred resources.
  • Endeavour Silver Corp. reported drill results from its exploration program at the Bolañitos mine in Guanajuato. The program was focused on the La Luz vein, with intersections that provide opportunities to extend mine-life. Highlighted true width intercepts comprise 1.02 m @ 1.17 gpt Au, 449 gpt Ag; 1.67 m @ 0.41 gpt Au, 183 gpt Ag; 0.95 m @ 2.03 gpt Au, 70 gpt Ag; 1.62 m @ 2.43 gpt Au, 1,063 gpt Ag (including 0.34 m @ 9.61 gpt Au, 4,070 gpt Ag); 2.49 m @ 3.15 gpt Au, 71 gpt Ag. “… eight drill holes totaling 2,000 metres has outlined high-grade mineralization over 100 metres in length to a depth of 200 metres. The area remains open to the south and to depth. Drilling will continue in the area for the first half of 2025”.
  • Vizsla Silver Corp. filed an independent technical report containing an updated mineral resource estimate (MRE) on the Panuco project in Sinaloa.
  • Luca Mining Corp. released results from the first four underground diamond drill holes on the ongoing 5,000 m exploration drill program at its Tahuehueto mine in Durango. The objective of the campaign is to define vertical and lateral extents of known mineralization within the Creston and Perdido vein systems. Highlighted core length intervals comprise 1.8 m @ 0.95 gpt Au, 60 gpt Ag, 1.11% Cu, 0.2% Pb, 0.2% Zn; 22.3 m @ 1.47 gpt Au, 42 gpt Ag, 0.44% Cu, 1.5% Pb, 2.3% Zn (Including 7.9 m @ 2.59 gpt Au, 68 gpt Ag, 0.68% Cu, 2.3% Pb, 2.7% Zn); 0.9 m @ 0.09 gpt Au, 18 gpt Ag, 0.21% Cu, 0.9% Pb, 4.0% Zn; 2.3 m @ 2.37 gpt Au, 0.1% Pb, 0.3% Zn; 7.2 m @ 0.37 gpt Au, 41 gpt Ag, 0.26% Cu, 1.8% Pb, 0.9% Zn; 1.7 m @ 0.09 gpt Au, 22 gpt Ag, 0.29% Cu, 2.1% Pb, 2.0% Zn.
  • Heliostar Metals Ltd. announced results from drilling at its Ana Paula project in Guerrero. The drilling program focus was on expanding the High Grade Panel and test step-out targets at depth beneath this zone. Highlighted core-length results comprise 161.0 m @ 4.26 gpt Au (including 30.0 m @ 10.1 gpt Au); 23.0 m @ 4.15 gpt Au (including 3.0 m @ 21.4 gpt Au); 4.6 m @ 7.91 gpt Au; 68.5 m @ 1.44 gpt Au; 24.0 m @ 5.10 gpt Au (including 3.0 m @ 10.9 gpt Au and 5.15 m @ 14.0 gpt Au); 3.80 m @ 2.43 gpt Au; 1.0 m @ 4.99 gpt Au; 66.85 m @ 3.12 gpt Au (including 15.7 @ 10.4 gpt Au); 13.0 m @ 3.50 gpt Au. 

ON DEALS AND CORPORATE ISSUES

  • Centenario Gold Corp. announced the resignation of Alain Charest as CEO of the company. “Alain will continue to represent the Company as both a board member, VP Exploration and an active adviser to the Company”. Doug Fulcher, current president of the company has been appointed CEO (Eden, Sinaloa).
  • United States Antimony Corp. announced the appointment of Mr. Rodney Blakestead as Vice President of the Mining Division and Leo Jackson as Vice President of the Mexican Antimony Division (Los Juarez, Querétaro).

ON SOCIAL RESPONSIBILITY

  • Guanajuato Silver Company Ltd. informed it is sponsoring a clinic in Topia, Durango, has treated 350 patients, and the Cata clinic in Guanajuato a further 700 persons. Furthermore “Water at the mines is largely recycled, while essential water services are often provided to rural communities. With priority placed on schools, kindergartens, and community spaces…”. Among other initiatives, the company is also committed to generating zero biodiversity loss from operations. 

On the image below: Sometimes following structures from a distance is not that difficult. Drone picture by Jorge Cirett.

The Mining and Exploration News in Mexico: Highlights on the Fourth Week of November 2024

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By Jorge Cirett                                             

During the 48th week of the year (November 25th to December 1st, 2024), companies working in Mexico posted at least 26 press releases. One company informed on exploration advances at its property, six companies presented quarterly results, six more informed on financing rounds, one released shares from escrow, one informed on dividends, one more on resumption of trading, one on the expiration of warrants, four companies updated on drilling programs and one on technical reports for its properties, two companies held their AGM’s, two more informed on contracting advertising services and two more announced appointments to the board. ON MEXICO ISSUES, taxes on the production of gold, silver and platinum have been increased by 1.5%. ON EXPLORATION, In Sonora, Tocvan Ventures announced drilling programs for Pilar and Gran Pilar projects. ON MINING, Santacruz Silver Mining, Orogen Royalties, Bear Creek Mining, Impact Silver, Luca Mining and Royalties Inc. released Q3 production results. ON FINANCING, Silver Storm Mining amended its previously completed private placement. Mithril Silver and Gold informed shares are to be released from escrow. Sailfish Royalty declared a dividend. Southern Silver Exploration announced a private placement for C$2.2 M, Sonora Gold another for C$0.5 M, Tocvan Ventures raised C$3 M and Regency Silver closed a first tranche financing for C$1.3 M. Endeavour Silver completed its prospectus offering for US$72.8 M. Silver Storm Mining resumed trading at the TSX. Vizsla Royalties informed on the expiration of warrants. Guanajuato Silver Company entered into an equity distribution agreement to issue up to C$7.5 M in shares. ON RESOURCES AND DEVELOPMENT, Fuerte Metals reported drilling results from Cristina, in Chihuahua. Guanajuato Silver Company updated on drilling and development at Pinguico, in Guanajuato. Heliostar Metals released drilling results from La Colorada, in Sonora. Silver Storm Mining completed an underground drilling program at La Parrilla, in Durango. Prime Mining filed a technical report with an updated MRE for Los Reyes, in Sinaloa. Defiance Silver updated on technical report work for its Tepal and Zacatecas projects in Michoacan and Zacatecas, respectively. ON DEALS AND CORPORATE ISSUES, Silver Storm Mining and GR Silver Mining contracted advertising services. Quetzal Copper and Orex Minerals announced appointments to the board. Silver Storm mining announced its AGM’s date. Elemental Altus Royalties announced AGM’s results. ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUES

  • The Deputies Chamber commission on fiscal matters approved a reform to increase the tax on mining, migration and use of protected land. The bill increases the mining special duty from 7.0 to 8.5% on income obtained from production of gold, silver and platinum.

ON EXPLORATION

  • Tocvan Ventures Corp. is to mobilize a diamond drill rig to the 105 ha Pilar project (51/49 Tocvan/Colibri) in Sonora. The program will focus in the Main Zone to produce a robust geological model for resource estimation. Additionally, an up to 2,000 m RC drill program is to test the 100% Tocvan controlled 2,100 ha expansion area (Gran Pilar). The next round of permitting will include extraction and processing of 50 K tonnes of bulk test mining scheduled for 2025. Total cost of the pilot facility including the extraction and processing of 50 k tonnes is expected to be US$1.7 M, with the recovery of 800 – 1,400 Oz Au and 5 K Oz Ag.

ON MINING

  • Santacruz Silver Mining Ltd. reported its financial and operating results for Q3, 2024, without expanding on figures from its Mexican operations. The company had US$78.2 M in revenue, had cash equivalents of US$18.2 M and a working capital of US$24.2 M (Zimpan, Hidalgo).
  • Orogen Royalties Inc. reported financial results for the third quarter of 2024. Royalty of C$2.1 M was earned with 614 Oz AuEq attributable, net income before tax of C$254.5 K, G&A expenses of C$1 M, cashflow of C$948 K and working capital of C$23.5 M. The revenue was generated from the Ermitaño property in Sonora, operated by First Majestic Silver, where Orogen holds a 2% NSR. During the quarter 259.9 K tonnes were processed averaging 3.50 gpt Au, 68 gpt Ag with recoveries of 94% Au, 66% Ag.
  • Bear Creek Mining Corp. reported its consolidated financial results for Q3 2024. At Mercedes, in Sonora, 103.9 K tonnes were mined, 102.5 K tonnes processed, averaging 3.40 gpt Au, recovering 96% Au, to produce 10,751 Oz Au, 76.9 K Oz Ag at cash cost $1,285 per Oz Au and an AISC of $1,697 per Oz Au. During the period the company obtained revenue of US$29.7 M, a gross profit of US$5.9 M, comprehensive earnings (loss) after taxes of US$(7.0) M and held US$7.7 M in cash and short-term investments. “Expenditures on exploration drilling during the quarter totaled $0.5 million and underground delineation drilling expenses totaled $1.34 million”.
  • Impact Silver Corp. announced its financial and operating results for the third quarter 2024. At Zacualpan, in Estado de Mexico, 32.9 K tonnes were processed grading 160 gpt Ag, to produce 152.1 K Oz Ag, 176 Oz Au. At Plomosas, in Chihuahua, 12.7 K tonnes were processed in Q3, with no more details given. For the first nine months of the year Plomosas grade was 47.2 gpt Ag, 7.9% Pb, 12.7% Zn, to produce 22 K Oz Ag, 344 tonnes Pb, 1,770 tonnes Zn in concentrate. After 18 months of rehabilitation, at the end of the quarter production stood at 70% of mill capacity. Revenue was $8.6 M, with a net loss of $1.2 M, a cash position of $6.4 M working capital of $7.1 M and no long-term debt.
  • Luca Mining Corp. reported its financial results for Q3 2024. Consolidated production from the Campo Morado (Guerrero) and Tahuehueto (Durango) mines during the period included 153 K tonnes mined, 151.2 K tonnes milled at an average rate of 1,758 tpd, averaging 1.63 gpt Au, 72.2 gpt Ag, 0.69% Cu, 0.66% Pb, 2.18% Zn, recovering 45.5% Au, 45.2% Ag, 78.6% Cu, 52.3% Pb, 80.8% Zn, to produce 3,604 Oz Au, 158.8 K Oz Ag, 1.8 M Lbs Cu, 1.1 M Lb Pb, 5.9 M Lb Zn, at cash cost $1,877 per Oz AuEq, an AISC of $2,337 per Oz AuEq and an All-in cost of $2,364 per Oz AuEq. Net quarterly revenue was US$18.1 M, EBITDA was (US$1.1M), mine operating cash flow before taxes US$2.4 M. The Campo Morado improvement project is making “excellent progress”, with a 2,000 tpd rate on track a copper recovery of over 80%. In the next few months separate zinc, copper and bulk concentrates (Pb+Au+Ag) will be produced. Ramp up and commissioning is starting to meet objective levels of +800 tpd. A 5,000 m drilling campaign in 26 underground holes is in progress. The company expects to be debt free by 2026.
  • Royalties Inc. reported its results for the third quarter 2024. On Mexico, the company reported the intention to monetize the Bilbao property in Zacatecas, ideally by selling to an existing silver producer, and the intention to achieve success in the lawsuit against Capstone Gold, a subsidiary of Capstone Copper, to properly recognize and make payments on the 2% NSR on the five Portree claims, in production since 2020 as part of the Cozamin mine in Zacatecas.  

ON FINANCING

  • Silver Storm Mining Ltd. amended its previously completed private placement: “The total number of common shares of the Company issued pursuant to the Offering totaled 35,392,610, rather than the previously stated amount of 35,317,610. The number of common share purchase warrants issued totaled 17,696,305, versus the previously stated amount of 17,658,805. Cash finders’ fees paid pursuant to the Offering totaled $124,990 rather than the $133,990 previously stated. The number of finders’ warrants issued totaled 620,700 as opposed to the previously stated amount of 670,950. As such, Red Cloud Securities Inc. received $2,100 cash finder’s fees and 10,500 finder’s warrants, and Canaccord Genuity Corp. received 242,700 finder’s warrants.” (La Parrilla, Durango).
  • Mithril Silver and Gold Ltd. confirmed that 500 K ordinary shares in the company are to be released from voluntary escrow on December 3, 2024 (Copalquin, Durango).
  • Sailfish Royalty Corp. declared the company’s third quarterly dividend for 2024, of US$0.0125 per common share, payable on January 15, 2025. Sailfish also announced the settling of US$205 K in interest accrued to November 24, 2024 through the issuance of 188.6 K shares, subject to TSX approval (Gavilanes, Durango).
  • Southern Silver Exploration Corp. is to undertake a non-brokered private placement for gross proceeds of C$2.2 M. The funds will be used for the advancement of its Cerro Las Minitas project in Durango.
  • Sonoro Gold Corp. announced a non-brokered private placement offering for gross proceeds of CAD $500 K. The net proceeds are to be used development of Cerro Caliche, in Sonora.
  • Endeavour Silver Corp. announced the completion of its prospectus offering announced on November 20, 2024 for gross proceeds of US$72.8 M. “The Offering was led by BMO Capital Markets, together with a syndicate of underwriters consisting of CIBC World Markets Inc., TD Securities Inc., Ventum Financial Corp. and H.C. Wainwright & Co., LLC.”  Proceeds are to be used on the advancement of the Pitarrila project in Durango.
  • Silver Storm Mining Ltd. announced the resumption of trading of its shares on the TSX Venture Exchange on November 28, 2024 (La Parrilla, Durango).
  • Vizsla Royalties Corp. reminds holders of outstanding common share purchase warrants issued on June 24, 2024, that the warrants will expire on December 20, 2024 (Panuco, Sinaloa).
  • Regency Silver Corp. completed the first tranche of a previously announced non brokered private placement for total proceeds of C$1.27 M (Dios Padre, Sonora).
  • Tocvan Ventures Corp. arranged a non-brokered private placement for gross proceeds of up to C$3 M, including C$1.8 M from an institutional investor. Proceeds are to be used on the Gran Pilar project, in Sonora. “The Units issued to the Investor under the Institutional Offering will be subject to the terms of an escrow agreement. The Company will receive $75,000 per month from the closing date of the Institutional Offering over the next 24 months….. The Investor will receive a corporate finance fee of $126,000, payable via the issuance of 262,500 Common Shares and related Warrants” (Pilar, Sonora).
  • Guanajuato Silver Company Ltd. entered into an equity distribution agreement with Research Capital Corp. to establish an at-the-market equity program. The company may issue up to C$7.5 in common shares under the program. “The Company will pay the Agent a commission of 2.5% of the gross offering proceeds from each sale of Offered Shares..” (El Cubo, San Ignacio and Valenciana Mines Complex, Guanajuato).

ON RESOURCES AND DEVELOPMENT

  • Fuerte Metals Corp. reported results from five holes at its Cristina project in Chihuahua. “Fuerte has now reported twenty-five holes totalling 6,976.5 metres of drilling as part of a 40-50 hole, 21,000 metre drill program.” Highlighted core length intervals comprise 0.7 m @ 2.30 gpt Au, 134 gpt Ag, 0.11% Cu, 1.4% Pb, 8.8% Zn; 10.5 m @ 1.40 gpt Au, 19 gpt Ag (including 1.2 m @ 8.60 gpt Au, 21 gpt Ag); 0.4 m @ 8.20 gpt Au, 39 gpt Ag, 1.1% Pb, 1.3% Zn; 2.8 m @ 1.20 gpt Au, 88 gpt Ag, 0.24% Cu, 1.5% Pb, 5.0% Zn; 0.5 m @ 2.00 gpt Au, 323 gpt Ag, 0.94% Cu, 5.9% Pb, 18.0% Zn; 1.5 m @ 1.60 gpt Au, 54 gpt Ag, 0.16% Cu, 1.6% Pb, 3.5% Zn; 3.7 m @ 1.20 gpt Au, 6 gpt Ag, 0.2% Zn; 3.3 m @ 1.00 gpt Au, 61 gpt Ag, 0.20% Cu, 0.7% Pb, 2.3% Zn; 2.6 m @ 1.60 gpt Au, 10 gpt Ag, 0.4% Pb, 1.4% Zn; 1.1 m @ 3.40 gpt Au, 150 gpt Ag, 0.21% Cu, 8.5% Pb, 4.8% Zn; 21.0 m @ 0.20 gpt Au, 8 gpt Ag, 0.2% Pb, 0.6% Zn. The company is aiming to produce a new mineral resource estimate based on underground mining for Q3 2025.
  • Guanajuato Silver Company Ltd. updated on drilling and development programs at its Pinguico property in Guanajuato. A total of 446 m were drilled in three holes at the San Jose vein, with highlighted intervals comprising 0.70 m @ 0.75 gpt Au, 94 gpt Ag; 0.65 m @ 0.77 gpt Au, 55 gpt Ag; 0.75 m @ 1.26 gpt Au, 85 gpt Ag; 1.16 m @ 1.18 gpt Au, 51 gpt Ag; 0.45 m @ 0.87 gpt Au, 55 gpt Ag; 1.20 m @ 0.72 gpt Au, 95 gpt Ag; 0.85 m @ 2.04 gpt Au, 124 gpt Ag. The first drill hole in the property to intersect the Veta Madre structure intercepted 60 m of a highly altered deformation zone, with an interval of 1.13 m @ 0.56 gpt Au, 2 gpt Ag in a quartz stockwork. Underground mining continued at Pinguico, with the aim of reaching in Q2 2025 the historical underground backfill stockpile with an indicated resource of 25.6 K tonnes @ 1.67 gpt Au, 166 gpt Ag. Development production during the quarter contributed 2.6 K tonnes @ 1.19 gpt Au, 102 gpt Ag (203 gpt AgEq).
  • Heliostar Metals Ltd. announced results from 3,257 m of drilling in 24 holes at La Colorada, in Sonora. La Colorada ceased production in September 2023 and is currently producing gold from residual leaching. The company is evaluating the potential to restart mining in 2025, hence the drill program to expand the mineral reserve, targeting shallow zones to the east and west of the Creston Pit. The results show narrow to wide, low to high grade oxide gold intercepts hosted in three veins: the North, Intermediate and South Veins and are surrounded by smaller mineralized vein zones. Highlighted true width intercepts comprise 11.85 m @ 1.71 gpt Au, 22 gpt Ag (including 1.25 m @ 13.10 gpt Au, 20 gpt Ag); 16.07 m @ 0.34 gpt Au, 69 gpt Ag; 4.10 m @ 2.27 gpt Au, 4 gpt Ag; 11.70 m @ 2.22 gpt Au, 5 gpt Ag (including 2.70 m @ 8.79 gpt Au, 5 gpt Ag); 4.50 m @ 18.50 gpt Au, 20 gpt Ag; 31.40 m @ 1.24 gpt Au, 5 gpt Ag; 14.50 m @ 1.69 gpt Au, 5 gpt Ag (including 1.25 m @ 16.60 gpt Au, 14 gpt Ag); 4.75 m @ 0.49 gpt Au, 158 gpt Ag.
  • Silver Storm Mining Ltd. completed its underground drilling program at La Parrilla, in Durango. A total of 18,682 m was drilled, with 12,265 m reported to date. “Upon completion of the QA/QC as well as interpretation, the additional 6,417 m will be reported over the coming weeks”. Completion of a new resource estimate update is targeted for January 2025.
  • Prime Mining Corp. filed a technical report with the updated mineral resource estimate for its Los Reyes project in Sinaloa. The resources have been divided in: Open Pit Milled Resources with 1.27 M Oz AuEq (24.7 M tonnes @ 1.60 gpt AuEq) as indicated resources and 335 K Oz Au (7.2 M tonnes @ 1.45 AuEq) as inferred resources; Underground Milled Resources of 664 K Oz AuEq (4.1 M tonnes @ 5.00 gpt AuEq) as indicated resources and 406 K Oz AuEq (4.1 M tonnes @ 3.12 gpt AuEq) as inferred resources; Open Pit Heap Leach Resources with 261 K Oz AuEq as indicated resources and 76 K Oz Au as inferred resources. Total indicated resources add up to 49 M tonnes @ 0.95 gpt Au, 34.2 gpt Ag (1.39 gpt AuEq) containing 1.49 M Oz Au, 54 M Oz Ag (or 2.19 M Oz AuEq) and inferred resources to 17.2 M tonnes @ 0.97 gpt Au, 39 gpt Ag (or 1.48 gpt AuEq), containing 538 K Oz Au, 21.6 M Oz Ag (or 817 K Oz AuEq). Five drill rigs are currently active at Los Reyes, with the 2024 drill program extended from 40,000 to 50,000 m, and focusing on extending high-grade shoots and connecting between deposits and generative target drilling for high-grade at Las Primas, Mariposa, Fresnillo, Mina and other areas.
  • Defiance Silver Corp. updated on technical reports for its projects. At Tepal, in Michoacan, the company is preparing a new technical report including a new mineral resource estimate (MRE). A new PEA is to follow the release of the MRE during the course of 2025. At San Acacio, in Zacatecas, a revised technical report is being prepared. More than 25,400 m of drilling have been completed at San Acacio since the 2014 technical report, which did not comply with NI-43-101 standards. The drilling and extensive surface geological and structural mapping and surface soil sampling of the entire project are to be incorporated into current geological and resource models to prepare a mineral resource estimate and report a technical report for the Zacatecas project by mid-December.

ON DEALS AND CORPORATE ISSUES

  • Silver Storm Mining Ltd. entered into an advertisement’s services agreement with Peter Epstein for an initial term of six months, subject to renewal or cancellation. “The Company has previously convened a three-month trial with Mr. Epstein from April 1, 2024 to June 30, 2024 for the same services mentioned above …” (La Parrilla, Durango).
  • Quetzal Copper Corp. announced Ms. Lisa Thompson is joining the board of directors. At the same time John Fraser is departing from the board (Cristinas, Chihuahua).
  • Silver Storm Mining Ltd. is to hold its annual general meeting (AGM) on January 25, 2024 (La Parrilla, Durango).
  • GR Silver Mining Ltd. has engaged the services of ICP Securities Inc. to provide automated market making services under which ICP will be paid a monthly fee of $7,500 plus taxes (Plomosas, Sinaloa).
  • Elemental Altus Royalties Corp. announced results from its annual general meeting (Mercedes, Sonora).
  • Orex Minerals Inc. announced the appointment of Mr. Rakesh Malhotra as CFO. Ross Wilmot will be resigning as CFO and as a director of the company (Sandra, Durango).

ON SOCIAL RESPONSIBILITY

  • No Relevant News.

On the image below: Drilling under the scarp, in Sonora. Drone picture by Jorge Cirett.

The Mining and Exploration News in Mexico: Highlights on the Second Week of November 2024

/ Gambusino Prospector / Leave a comment

By Jorge Cirett                                             

During the 46th week of the year (November 11th to November 17th,2024), companies working in Mexico posted at least 24 press releases. Two companies informed on exploration advances at their properties, ten companies presented quarterly results and one other actualized its production forecast for the second half of 2024. Two companies released drilling results from their advanced properties, with one also providing channel sample results. One company announced a private placement probably to be used on properties in Mexico, two more companies with properties in Mexico announced financing rounds to be applied outside from Mexico and a royalties company signed a lending agreement. Two companies updated on exploration and drill results from their advanced properties, and one more company informed on its evaluation on the keeping or disinvestment on an advanced property. One company updated on legal proceedings on the cancellation of a key concession, one more held its AGM and other two informed on operating issues impacting a silverstream. ON MEXICO ISSUES most of the concentrate end-dump trailers hijacked from the Peñasquito mine were recovered empty. Two miners are dead, five unaccounted for in a mine cave-in in Sinaloa. ON EXPLORATION, In Sonora, Tocvan Ventures provided exploration results from Pilar (Gran Pilar?). In Chihuahua, Kingsmen Resources announced a drilling program at Las Coloradas. ON MINING, Gatos Silver, Mag Silver, Orla Mining, SilverCrest Metals, Discovery Silver, Avino Silver, Prime Mining, Sailfish Royalty, Dyna Resource and US Antimony, released Q3 production results and Heliostar Metals released its forecast on production for H2 2024. ON FINANCING, Apollo Silver and Osisko Development closed private placements for C$13.5 M and US$57.5 M respectively. Orex Minerals completed a warrants exercise program, Elemental Altus Royalties amended a credit facility. ON RESOURCES AND DEVELOPMENT, Osisko Development is awaiting on a permit to operate its San Antonio project in Sonora, and evaluating the sale of the asset. Endeavour Silver updated on exploration and development at Pitarrilla, in Durango. Torex Gold released results from resource upgrading drilling at EPO, in Guerrero. ON DEALS AND CORPORATE ISSUES, Chesapeake Gold updated on legal proceedings on the cancellation of a key mining concession at its Metates project in Durango. GR Silver held its AGM. Fresnillo plc and Industrias Peñoles are resolving issues arising from operational challenges that affect a silverstream.  ON SOCIAL RESPONSIBILITY, Discovery Silver released its 2023 ESG report.

ON MEXICO ISSUES

  • Nine of the eleven hijacked end-dump trailers carrying concentrate from the Peñasquito mine in Zacatecas were recovered empty on a dirt road in Durango. No detentions were made (How on this Earth can you disappear 240 tonnes of concentrate that can only be processed in a few sites in the country, and the export ports being controlled by the Navy? Yes, it is a rhetoric question).
  • Five miners were trapped by a cave-in at a mine in Badiraguato, Sinaloa.  Two persons are presumed dead and the fate of another three to five is unclear.

ON EXPLORATION

  • Kingsmen Resources Ltd. announced a diamond drill program for its 850 ha Las Coloradas project in Chihuahua. The company selected three principal target areas, the Mine, Aguilar and Leona on the Soledad structure. “The Mine target includes the old Las Coloradas mine on the SE end of the Soledad structure/vein system, and adjacent mineralized structures. The Leona target covers an area of old high grade workings approximately 530 meters long on the NW end of the Soledad II structure. The Aguilar target covers an area of old high grade workings approximately 250 meters long on the NW end of the Soledad structure/vein system”.
  • Tocvan Ventures Corp. provided exploration results from its Gran Pilar project in Sonora , adjacent to its Pilar project). A total of 541 soil samples have been collected in the project, returning up to 21.2 gpt Au, >2,000 gpt Ag, 0.62% Cu, 12.7% Pb, 2,3% Zn. “ …. zones of significant and consistently high values of gold have been identified showing several kilometers of prospective trend that remains open to the east for further expansion”.

ON MINING

  • Gatos Silver Inc. announced third quarter 2024 financial and operating results. At Cerro Los Gatos (70% Gatos Silver, 30% Dowa Metals and Mining Co.), in Chihuahua, 298.6 K tonnes were milled in the period at a rate of 3,246 tpd, averaging 285 gpt Ag, 4.0% Zn, 2.0% Pb, 0.30 gpt Au, to produce 2.42 M Oz Ag, 1,450 Oz Au, 11.4 M Lb Pb, 16.5 M Lb Zn (3.84 M Oz AgEq). By-product cash cost was $3.69 per Oz Ag and the by-product AISC $9.61 per Oz Ag. During the quarter Gatos Silver and First Majestic Silver Corp. entered into a definitive merger agreement.
  • Mag Silver Corp. announced unaudited consolidated financial results for Q3 2024. A total of 332.3 K tonnes of ore grading 481 gpt AgEq was processed at Juanicipio, in Zacatecas, producing 4.9 M Oz Ag, 7.1 M Oz AgEq, at negative cash cost of $0.12 per Oz Ag ($8.38 per Oz AgEq) and an AISC of $3.28 per Oz Ag ($10.83 per Oz AgEq), generating US$109.9 M in operating cash flow and US$96.9 M in free cash flow (Mag’s share on the Juanicipio JV is 44%). During the period Mag Silver entered into an earn-in and option exploration agreement in which Apollo Silver Corp. can acquire the Cinco de Mayo property in Chihuahua.
  • Orla Mining Ltd. announced results for the third quarter of 2024. Production at Camino Rojo in Zacatecas was 43,788 Oz Au during the period at cash cost $482 per Oz Au and an AISC of $720 per Oz Au. Average mining rate was 52 K tpd, with 18.4 K tonnes of ore stacked averaging 0.93 gpt Au. A 30,000 m drilling program is underway to test and expand mineralization beneath existing resources. “….. results confirm the presence of flat-lying (mantos) and steep sulphide replacement-style mineralization, along with skarn-type alteration, extending at least 500 meters down plunge from the existing resource”. Net income was US$21.1 M and cash flow from operating activities US$52.0 M. In October the outstanding balance of US$58.4 M was repaid on its revolving credit facility of US$283.4 M. The company elevated the 2024 production guidance to 130,000 to 140,000 Oz Au. At the end of the period net cash was US$122.5 M.
  • SilverCrest Metals Inc. released financial results for Q3 2024. At Las Chispas, in Sonora, 4.4 km of development were completed, 124.2 K tonnes were mined at a rate of 1,350 tpd, 121.8 K tonnes milled, averaging 3.87 gpt Au, 366 gpt Ag (or 674 gpt AgEq), recovering 98.5% Au, 98.3% Ag to produce 14,928 Oz Au, 1.41 M Oz Ag (or 2.66 M Oz AgEq) at cash cost $8.85 per Oz AgEq and an AISC of $13.72 per Oz AgEq. Revenue in the period was US$80.4 M, an operating cash flow of US$44.2 M and free cash flow of US$36.2 M. SilverCrest had US$158.2 M by the end of September. In October the acquisition of Silver Crest Metals by Coeur Mining Inc. was announced.
  • Discovery Silver Corp. announced financial results for Q3 2024. At the end of the period the company had a net loss of C$5.3 M, 397.7 M shares outstanding, cash and cash equivalents of C$33.4 M, total assets of C$125.1 M, liabilities for C$6.2 M and a working capital of C$30.9 M (Cordero, Chihuahua).
  • Avino Silver & Gold Mines Ltd. announced its consolidated financial results for the third quarter of 2024. During the period the company processed 156.5 K tonnes of ore to produce 281.8 K Oz Ag, 1,625 Oz Au, 1.77 M Lb Cu (or 670.9 K Oz AgEq) at its Avino mine in Durango. Revenues were US$14.6 M, mining operating income of US$5.7 M, net income of US$1.2 M, EBITDA of US$3.8 M, cash flow from operations of US$4.1 M and a mine operating cash flow before taxes of US$6.7 M. At the end of the period the company had US$7.8 M in cash and working capital of US$15.9 M. Guidance remains on track to produce 2.5 M to 2.8 M Oz AgEq in 2024. Avino continued to process historical stockpiles from the nearby La Preciosa project: “as part of a sampling program to better prepare for fresh mill feed. Initial recoveries from the lower-grade material were better than expected and provide for potential upside as the project moves forward”. The operations team is in the final stages for approval to move forward with underground development at La Preciosa.
  • Prime Mining Corp. reported its operating and financial results for Q3 2024. During the period the company announced the update of an open pit constrained resource at Los Reyes, in Sinaloa, of 49 M tonnes @ 0.95 gpt Au, 34.2 gpt Ag, containing 1.49 M Oz Au, 54 M Oz Ag (or 2.19 M Oz AuEq) in indicated resources and 17.2 M tonnes @ 0.97 gpt Au, 39 gpt Ag, containing 0.54 M Oz Au, 21.6 M Oz Ag (or 0.82 M Oz AuEq) in inferred resources. Prime Mining reported Loss and comprehensive loss of C$16.2 M, total assets of C$35.2 M, liabilities of C$0.9 M and total liabilities of C$1.7 M, with cash at the end of the quarter of C$21.2 M. Four drilling rigs are currently active at Los Reyes.
  • Sailfish Royalty Corp. announced operating and financial results for the third quarter 2024. Sailfish has no operations in Mexico, but holds 100% in the Gavilanes project in Durango.
  • Dyna Resource Inc. reported results for its third quarter 2024. During the period 61 K tonnes were mined at a rate of 663 tpd at its San Jose de Gracia project in Sinaloa, milling 61.9 K tonnes at a rate of 663 tpd, grading 3.78 gpt Au, recovering 75.4% Au to produce 5,676 Oz Au. “The Company intends to prioritize drilling high grade underground targets that can readily be brought into the mine plan as well as the continued regional program to better understand the potential of the significant land package at SJG”. Revenue was US$ 11.2 M during the period. Management believes it will achieve its production rate target of 25.5 K tonnes per month in Q4 2024. The company is working to improve plant recoveries.
  • Heliostar Metals Ltd. provided gold production guidance for the recently acquired San Agustin mine, in Durango, and the La Colorada mine, in Sonora. For the July-December 2024 period production expected for La Colorada is 4,700-4,800 Oz Au, 13.3 K-14.4 K Oz Ag (or 4,800-4,900 Oz AuEq) at cash cost $1,350-$1,450 per Oz Au and an AISC of $1,500-$1,600 per Oz Au. At San Agustin 14,650-14,950 Oz Au, 25,400-25,500 Oz Ag (or 15,200-15,300 Oz AuEq), at cash cost $1,500-$1,600 per Oz Au and an AISC of $1,650-1,750 per Oz Au. La Colorada continues to produce Au from leach pads, but mining was paused by the previous operator on September 2023. Heliostar is to determine the economic viability of restarting operations and to complete a pre-feasibility study in early Q1 2025. At San Agustin mining operations ceased due to permitting constraints and is producing Au from existing leach pads. “The Company has submitted a permit application to expand the open pit that would allow mining at San Agustin to recommence in 2025. Without approval, the San Agustin Mine will transition to care and maintenance upon completion of leaching operations.”
  • United States Antimony Corp. reported third quarter 2024 financial and operational results. The company has no operations in Mexico, but holds the Los Juarez gold project in Queretaro.

ON FINANCING

  • Apollo Silver Corp. closed a fully subscribed non-brokered private placement for aggregate gross proceeds of C$13.5 M (Cinco de Mayo, Chihuahua).
  • Osisko Development Corp. closed its previously announced private placement for aggregate gross proceeds of US$57.5 M (San Antonio, Sonora).
  • Orex Minerals Inc. completed the company’s warrant exercise incentive program raising approximately $1.2 M (Coneto, Durango).
  • Elemental Altus Royalties Corp. signed an amendment to its credit facility, exercising the US$10 M accordion feature, with the borrowing limit increased to US$50 M and Royal Bank of Canada (RBC) as a new lender in the facility, joining National Bank of Canada (NBC) and Canadian Imperial Bank of Commerce (CIBC) (Mercedes, Sonora).

ON RESOURCES AND DEVELOPMENT

  • Osisko Development Corp. reported financial and operating results for Q3, 2024, including some information on its Mexican operations. At San Antonio, in Sonora, the company has kept the project in care and maintenance since Q3 2023, awaiting the next steps from the government of Mexico with respect to the permitting process and the status of open pit mining in the country. The company is “exploring the potential for a financial or strategic partner in the asset or for a full or partial sale of the asset”.
  • Endeavour Silver Corp. reported an update on the exploration and evaluation of its Pitarrilla property in Durango. Endeavour has re-logged the historic drill core, focusing on defining high-grade feeder structures of the Ag-Pb-Zn sulfide mineralization. The company has refurbished the ramp and extended it over 1.3 km to provide access to underground drilling. This work has confirmed the presence of at least four structures that extend through the manto (Palmito, Danna, Victoria and Casas Blancas veins), additional mineralized structures include the Norma and Danna hanging wall veins and the Peña dike. It is estimated that the first four veins are typically 3 m in width and have a vertical extent of 600 to 800 m and strike lengths of 700 m; these veins appear open to depth. Highlighted true width intervals comprise 82.92 m @ 0.02 gpt Au, 87 gpt Ag, 0.08% Cu, 0.6% Pb, 2.4% Zn; 25.94 m @ 0.04 gpt Au, 241 gpt Ag, 0.18% Cu, 0.9% Pb, 1.9% Zn (including 0.90 m @ 0.04 gpt Au, 2,020 gpt Ag, 1.6% Cu, 5.7% Pb, 4.0% Zn); 13.62 m @ 0.06 gpt Au, 183 gpt Ag, 0.04% Cu, 0.5% Pb, 1.8% Zn; 22.23 m @ 0.02 gpt Au, 112 gpt Ag, 0.06% Cu, 0.5% Pb, 3.6% Zn (including 0.92 m @ 0.21 gpt Au, 1,145 gpt Ag, 0.14% Cu, 1.6% Pb, 4.5% Zn). Highlighted Peña dike channel samples on the ramp comprise 4.20 m @ 0.07 gpt Au, 562 gpt Ag, 0.78% Cu, 5.3% Pb, 2.5% Zn; 5.35 m @ 0.09 gpt Au, 424 gpt Ag, 0.24% Cu, 4.9% Pb, 2.2% Zn; 3.85 m @ 0.09 gpt Au, 511 gpt Ag, 1.71% Cu, 3.0% Pb, 4.5% Zn.
  • Torex Gold Resources Inc. released assay results from the ongoing drill program at EPO, on its Morelos Complex, in Guerrero. Drilling has shown the potential to upgrade inferred resources to indicated resources in the NE portion of the EPO deposit. Highlighted core length intercepts comprise 36.6 m @ 9.57 gpt Au, 20 gpt Ag, 0.51% Cu (including 7.55 m @ 43.33 gpt Au, 48 gpt Ag, 0.51% Cu); 19.16 m @ 4.01 gpt Au, 3 gpt Ag, 0.30% Cu; 18.75 m @ 2.83 gpt Au, 28 gpt Ag, 1.26% Cu; 18.91 m @ 1.56 gpt Au, 73 gpt Ag, 2.62% Cu on resource conversion and 5.10 m @ 3.70 gpt Au, 30 gpt Ag, 1.37% Cu; 3.00 m @ 4.90 gpt Au, 21 gpt Ag, 0.28% Cu; 3.18 m @ 3.56 gpt Ag; 39 gpt Ag, 0.95% Cu; 8.33 m @ 0.44 gpt Au, 45 gpt Ag, 1.44% Cu; 2.37 m @ 0.46 gpt Au, 149 gpt Ag, 3.24% Cu; 3.59 m @ 0.51 gpt Au, 69 gpt Ag, 2.23% Cu, in advanced exploration beyond the resource boundary to the north of EPO. The EPO geology described in the press release highlights its complexity, with skarn, CRD and intermediate sulfidation epithermal mineralization events.

ON DEALS AND CORPORATE ISSUES

  • Chesapeake Gold Corp. updated on legal proceedings related to its 700 ha San Vicente 3 mineral concession. The proceedings against the Dirección General de Minas (DGM) are the company’s response to the cancellation of one of 12 concessions within its 4,260 ha  Metates project in Durango (the largest undeveloped gold deposit in Mexico). “Chesapeake began nullity proceedings to have the cancellation of San Vicente 3 declared as null and void by the North Center III and Auxiliary Regional Chamber of the Federal Court of Administrative Justice (the “Chamber”) based on certain procedural arguments. The Chamber dismissed the Company’s lawsuit in a 2-1 split decision, with the dissenting judge finding the Company’s arguments to be well-founded. The Company plans to appeal before the Collegiate Court and to pursue all legal remedies available”. The concession covers part of the mineral resource, and its cancellation would hinder the ability to develop the Metates project as outlined on the PEA.
  • GR Silver Mining Ltd. held its annual general meeting (AGM) with all matters brought before the meeting approved (Plomosas, Sinaloa).
  • Fresnillo plc. has secured notice over operational issues at Industrias Peñoles Sabinas mine in Zacatecas, affecting silver output. There is a silverstream contract comprising a series of 12 agreements between Fresnillo and Peñoles, following which the London-listed miner has the right to receive all proceeds from the payable silver. “The operational challenges at the mine have prompted immediate discussions between the two companies to evaluate the situation and its implications for the agreement”.

ON SOCIAL RESPONSIBILITY

  • Discovery Silver Corp. released its 2023 ESG (environmental social and governance) report, highlighting the reception of the Quality Environmental Certification, the Socially Responsible Enterprise (ESR) Distinction and the Great Place to Work Certification (Cordero, Chihuahua).

On the image below: Clear vein scarps in a copper project in Sonora. Drone picture by Jorge Cirett.

The Mining and Exploration News in Mexico: Highlights on the Fourth Week of October, 2024

/ gambusinoprospectormexico / Leave a comment

Jasperoid related to an epithermal vein system

By Miguel A Heredia

During the 43th week of the year (October 21st to October 27th 2024), at least 32 press releases were announced by companies working in Mexico, with nine disclosing deals and corporate issues, nine communicating production and financial results, six reporting resources and development of their properties, five announcing financing rounds, two informing on exploration results, and one commenting on Mexican issues. ON MEXICO ISSUES, Kootenay reported the best drilling intercepts in Mexico on the fourth week of October, 2024. ON EXPLORATION, In Chihuahua, Kootenay released results from 4 holes drilled at its Columba project. In Sinaloa, Centenario Gold reported that it plans to initiate a second phase drill program in early 2025 at its Eden property.  ON MINING, Fortuna Mining announced that it will release its Q3, 2024 financial results on November 3, 2024 (San Jose Mine, Oaxaca). Starcore announced the resumption of operations at its San Martin mine in Queretaro. MAG Silver reported Q3, 2024 production results from its Juanicipio mine in Zacatecas. Santacruz released Q3, 2024 production results from its Zimapan mine in Hidalgo. Gold Royalty announced strong Q3, 2024 revenue, driven by the company´s cash flowing royalties (Cozamin, Zacatecas). Gold Resource reported preliminary Q3, 20243 production results from its Don David mine in Oaxaca. Equinox announced that it will release its unaudited financial and operating results for the three and nine months ended September 30, 2024 on Wednesday, November 6, 2024 (Los Filos mine, Guerrero). Newmont reported Q3, 2024 production results from its Peñasquito mine in Zacatecas. Fresnillo plc released Q3, 2024 production results from their Mexican operations. ON FINANCING, Guanajuato Silver announced a non-brokered private placement for gross proceeds of up to CAD $8M, the same that later on was modified to CAD $8.62M (Valenciana Mine Complex, Guanajuato). Prismo reported that it entered into debt settlement agreements with certain creditors of the company (Palos Verdes project, Sinaloa). Kingsmen announced a non-brokered private placement for gross proceeds of up to $1M (Las Coloradas project, Chihuahua). Osisko Development announced an oversubscribed and fully allocated private placement financing for gross proceeds of USD $57.5M (San Antonio project, Sonora).  ON RESOURCES AND DEVELOPMENT, Goldgroup reported results of an independent metallurgical testing conducted at its Cerro Prieto mine in Sonora. Endeavour Silver provided a Q3, 2024 construction progress update on its Terronera property in Jalisco. Chesapeake provided a metallurgical update for its Metates property in Durango. Sierra Madre announced a test mining throughput at its la Guitarra mine complex in Estado de Mexico. Silver Tiger released results of a preliminary feasibility study (PFS) for its El Tigre project in Sonora. Luca Mining commenced an underground exploration program at its Tahuehueto mine in Durango.  ON DEALS AND CORPORATE ISSUES, Quetzal Copper announced results of its annual general meeting of shareholders (Cristinas project, Chihuahua). Silver Storm reported that the trading of its shares on the TSX Venture Exchange has been suspended due to its failure to file its annual financing statements, management´s discussion and analysis, and related officer certifications. (La Parrilla Mine, Durango). Starcore announced management changes of its Board of Directors (San Martin mine, Queretaro). GR Silver reported the replacement of its CEO (Plomosas project, Sinaloa). Heliostar received regulatory approval for the acquisition of the Mexican business unit from Florida Canyon (San Agustin and El Castillo mines in Durango, plus other assets). Florida Canyon received regulatory approval for the sale of its Mexican business unit to Heliostar (San Agustin and El Castillo mines in Durango, plus other assets). Centenario Gold amended its Eden property option agreement located near Cosala, Sinaloa. Southern Silver reported results from its annual general meeting of shareholders (Cerro Las Minitas project, Durango). Fuerte Metals reported that its common shares have been approved to trade on the OTC Market’s Group Inc.’s OTCQB Venture Market (Cristina project, Chihuahua). Xali Gold announced that Kappes, Cassiday and Associates (KCA) is progressing well on the El Oro tailings project in Mexico, having made a recent payment of USD $1M as part of the purchase agreement.   ON SOCIAL RESPONSIBILITY,  no relevant news.

ON MEXICO ISSUE

  • Kootenay Silver Inc., reported the best drilling intercepts in Mexico on the fourth week of October, 2024. Details are shown in the table below:

ON EXPLORATION

  • Kootenay Silver Inc., released results from 4 holes drilled at its Columba project, Chihuahua. The batch reported herein comprises drill tests of the D-Vein trend along strike or at depth. The Company is focused on testing extensions and gaps within the data set in advance of the preparation of a mineral resource estimate. Drilling highlights (true width reported) include holes CDH-24-171 with 1,334 g/t Ag, 0.8% Pb, and 3.4% Zn over 2.17m, including 2,370 g/t Ag, 1.2% Pb, and 5.5% Zn over 0.42m, plus 117 g/t Ag, 1.1% Pb, and 0.3% Zn over 2.5m, plus 298 g/t Ag, 1.3% Pb, and 0.6% Zn over 6.48m, including 627 g/t Ag, 2.5% Pb, and 0.5% Zn over 2.62m, including 1,525 g/t Ag, 1.3% Pb, and 0.2% Zn over 0.53m, plus 369 g/t Ag, 0.6% Pb, and 1.8% Zn over 1.25m, including 976 g/t Ag, 1.5% Pb, and 4.8% Zn over 0.42m, plus 338 g/t Ag, 0.4% Pb, and 1.1% Zn over 15m, including 484 g/t Ag, 0.5% Pb, and 1.4% Zn over 9.34m, including 923 g/t Ag, 0.8% Pb, and 2.5% Zn over 1.2m, plus 487 g/t Ag, 0.5% Pb, and 1.1% Zn over 2.5m; and hole CDH-23-173 with 401 g/t Ag, 0.2% Pb, and 0.4% Zn over 1.67m, plus 142 g/t Ag, 0.1% Pb, and 0.6% Zn over 7.14m, including 377 g/t Ag, 0.3% Pb, and 1.8% Zn over 1.89m, plus 459 g/t Ag, 0.3% Pb, and 0.6% Zn over 0.76m, plus 796 g/t Ag, 0.6% Pb, and 2.2% Zn over 0.53m, plus 679 g/t Ag, 0.3% Pb, and 0.5% Zn over 0.76m, plus 162 g/t Ag, 0.4% Pb, and 1.4% Zn over 4m, plus 84 g/t Ag, 0.1% Pb, and 0.2% Zn over 7.58m, plus 1,070 g/t Ag, 4.2% Pb, and 1.7% Zn over 0.38m.
  • Centenario Gold Corp., reported that it plans to initiate a second phase drill program in early 2025 at its Eden property in Sinaloa, building on insights gained from the first phase of drilling completed in February 2024. This upcoming program aims to further explore the mineralized systems on the Eden property, including the upper and deeper portions of the Buenavista epithermal system and other nearby prospects like La Provedora.

ON MINING

  • Fortuna Mining Corp., announced that it will release its unaudited financial statements and management’s discussion and analysis for the Q3, 2024 on November 3, 2024 (San Jose Mine, Oaxaca).
  • Starcore International Mines Ltd., announced the resumption of operations at its San Martin mine, Queretaro, which has returned to normal capacity following safety upgrades. The company expressed gratitude to various Mexican government agencies for their collaboration in enhancing safety standards.
  • MAG Silver Corp., reported Q3, 2024 production results from its Juanicipio mine in Zacatecas. The company milled 322,290 tonnes of 481 g/t Ag,1.32 g/t Au, 1.6% Pb, and 2.8% Zn to produce 4.88M Oz Ag, 10-8K Oz Au, 10.66M Lb Pb, and 16.76M Lb Zn.
  • Santacruz Silver Mining Ltd., released Q3, 2024 production results from its Zimapan mine in Hidalgo. The company processed 217,741 tonnes of 82 g/t Ag, 2.6% Zn, 0.8% Pb, and 0.29% Cu with metallurgical recoveries of 78%, 77%, 90%, and 43% respectively, to produce 444.6K Oz Ag, 9.68M Lb Zn, 3.38M Lb Pb, and 604.8K Lb Cu (1,156,097 Oz AgEq).
  • Gold Royalty Corp., announced strong Q3, 2024 revenue, driven by the company´s cash flowing royalties. The company reported an approximately 160% increase in revenue and 90% increase in total revenue, land agreement proceeds, and interest in the third period of 2024 compared with the same period in 2023 (Cozamin, Zacatecas).
  • Gold Resource Corporation reported preliminary Q3, 20243 production results from its Don David mine in Oaxaca. The company milled 83,690 tonnes of 0.54 g/t Au, 83 g/t Ag, 0.2% Cu, 1% Pb, and 2.6% Zn to produce 944 Oz Au, 194.5K Oz Ag, 208.3K Lb Cu, 1.29M Lb Pb, and 3.9M Lb Zn. In the third period of 2024, Gold Resource sold 1,357 Oz Au, 181.4K Oz Ag, 219.5K Lb Cu, 1.05M Lb Pb, and 3.3M Lb Zn (43,526 Oz AuEq) at an average realized  prices of USD $2,561/Oz Au, USD $30.61/Oz Ag, USD $8,832/tonne Cu, USD $2,065/tonne Pb, and USD $2,854/tonne Zn.
  • Equinox Gold Corp., announced that it will release its unaudited financial and operating results for the three and nine months ended September 30, 2024 on Wednesday, November 6, 2024 (Los Filos mine, Guerrero).
  • Newmont Corporation reported Q3, 2024 production results from its Peñasquito mine in Zacatecas. The company produced 213K Oz Au or 229K Oz AuEq at production costs of USD $ 985/Oz AuEq or USD $990/Oz AuEq and AISC of USD $1,224/Oz Au or USD $1,286/ Oz AuEq.
  • Fresnillo plc released Q3, 2024 production results from their Mexican operations. The company presented consolidated results and reported the production of 14.4M Oz Ag, 156.8K Oz Au, 39.7M Lb Pb, and 72.3M Lb Zn during the third quarter of 2024. It also provided a 2024 outlook and expects to produce between 55-62M Oz Ag and 580-630K Oz Au /101-112 M Oz AgEq). At Fresnillo mine, Zacatecas, it processed 578,323 tonnes of 155 g/t Ag, 1.04 g/t Au, 1.5% Pb, and 3.3% Zn to produce 2.6M Oz Ag, 14.4K Oz Au, 16.86M Lb Pb, and 32.18M Lb Zn. At Saucito mine, Zacatecas, the company processed 590,362 tonnes of 219 g/t Ag, 1.35 g/t Au, 1.1% Pb, and 2% Zn to produce 3.7M Oz Ag, 19.8K Oz Au, 12.85M Lb Pb, and 20.8M Lb Zn. At Pyrites Plant (includes Fe concentrates from Saucito and Fresnillo mines) it  processed 39,845 tonnes of 564 g/t Ag and 2.14 g/t Au  to produce 527K Oz Ag and 790 Oz Au. At La Ciénega mine, Durango the company processed 272,133 tonnes of 1.14 g/t Au, 163 g/t Ag, 0.4% Pb, and 0.4% Zn to produce 8.9K Oz Au, 1.2M Oz Ag, 1.5M Lb Pb, and 1.48M Lb Zn. At San Julian Veins, Chihuahua/Durango Border, Fresnillo processed 314,786 tonnes of 1.24 g/t Au and 226 g/t Ag to produce 11.9K Oz Au and 3M Oz Ag, At San Julian Disseminated Ore Body, Chihuahua/Durango Border, it processed 435,804 tonnes of 0.06 g/t Au, 77 g/t Ag, 0.3% Pb, and 1.1% Zn to produce 498 Oz Au, 902K Oz Ag, 2.4M Lb Pb, and 8.4M Lb Zn. At Herradura mine, Sonora, the company processed 6,257,754 tonnes of 0.7 g/t Au and 1,1 g/t Ag to produce 89K Oz Au and 119K Oz Ag. At Noche Buena mine, Sonora, the company recovered 5.4K Oz Au from the leach pads. At Juanicipio mine, Zacatecas (attributable), Fresnillo processed 186,082 tonnes of 481 g/t Ag, 1.32 g/t Au, 1.6% Pb, and 2.8% Zn to produce 2.74M Oz Ag, 6K Oz Au, 6M Lb Pb, and 9.5M Lb Zn.

ON FINANCING

  • Guanajuato Silver Company Ltd., announced a non-brokered private placement for gross proceeds of up to CAD $8M by the issuance of up to 33,333,333 units at a price of CAD $0.24 per unit. Later on, it was modified to CADS $8.62M by the issuance of 35,918,000 units at a price of $0.24 per unit. Net proceeds will be used for working capital and general corporate purposes (Valenciana Mine Complex, Guanajuato).
  • Prismo Metals Inc., reported that it entered into debt settlement agreements with certain creditors of the company. Creditors have accepted 100,000 common shares of the company at a deemed issue price per share of $0.21, and 17,500 common shares of the company at a deemed issue price per share of $0.20 in full and final settlement of aggregate accrued and outstanding indebtedness in the amount of $24,500 (Palos Verdes project, Sinaloa).
  • Kingsmen Resources Ltd., announced a non-brokered private placement financing of up to 4,000,00o units at a price of $0.25 per unit for gross proceeds of up to $1M (Las Coloradas project, Chihuahua).
  • Osisko Development Corp., announced an oversubscribed and fully allocated private placement financing for gross proceeds of USD $57.5M, which is expected to close on November 12, 2024. The offering involves the issuance of 31,944,700 units at a price of USD $1.80 per unit. Part of the net proceeds will be used to repay a portion of the company´s credit facility (San Antonio project, Sonora).

ON RESOURCES AND DEVELOPMENT

  • Goldgroup Mining Inc., reported that an independent metallurgical testing conducted at its Cerro Prieto Gold mine in Sonora has yielded promising results, confirming higher gold and silver recoveries from the Esperanza and Nueva Esperanza Zones. The average gold extraction rates were 82.07% for Nueva Esperanza and 78.03% for Esperanza, while silver extractions reached 90.42% and 63.12%, respectively. The tests involved cyanide agitated leach methods over a 72-hour retention period, with sodium cyanide and calcium oxide consumptions falling within medium ranges. On other tests involved locked cycle cyanide column method over a 78 days period, the average gold extractions rates were 78.88% for La Esperanza and 77.3% for Nueva Esperanza, while silver extractions reached 21.18% and 17.27% respectively at a sodium cyanide concentration of 600 ppm and crush size of  P80 of 3/8”, resulting in a calculated gold and silver recoveries of 72.09% and 17.27% respectively (3% discounted from column extraction) X 95% ADR plant recover for both zones. These findings indicate a positive outlook for the mine’s production potential and economic viability.
  • Endeavour Silver Corp., provided a Q3, 2024 construction progress update on its Terronera property in Jalisco.  It has reached 77% overall construction completion with more than USD $258M of the project’s budget spent to date. Key highlights include the Upper Plant Platform nearing completion and surface mill construction at 90%. The focus is shifting to the Lower Platform and Tailing Storage Facility, with significant progress in various areas, including the installation of flotation equipment and the construction of auxiliary buildings. The project is on track to begin commissioning systems near the end of Q4 2024, with ongoing mine development and community support initiatives also noted.
  • Chesapeake Gold Corp., provided a metallurgical update for its Metates property in Durango. The company achieved gold recovery rates exceeding 70% using its proprietary oxidative leach technology, which will serve as a foundation for a pre-feasibility study (PFS). After 204 days of oxidation, a ~74% gold recovery was achieved. After 146 days, the oxidation process increased the silver recoveries by over 20%. Silver represents approximately 30% of the economic value of Metates. Additionally, the recent acquisition of certain intellectual property rights marks a strategic milestone, enabling Chesapeake to explore further opportunities in the global refractory ores market, valued at approximately USD $1.5 trillion. The metallurgical test work demonstrated improved recoveries for both gold and silver, indicating the potential for enhanced economic value from the project.
  • Sierra Madre Gold and Silver Ltd., announced a test mining throughput at its la Guitarra mine complex in Estado de Mexico. Since test mining began on June 25, 2024, the company has achieved an average daily throughput of 428 wet metric tonnes (WMT), with peaks of 504 WMT/d. Silver recoveries have averaged 78%, while gold recoveries have improved from 74% in June to 87% in October. The company plans to begin commercial production before the end of the year and is testing new reagent combinations to enhance silver recovery from oxidized materials.  Since the commencement of test operations, a total of 39,272 tonnes of economically interesting mineralized material has been put through the processing circuit. A total of 690.44 dry metric tonnes of concentrate has been shipped to MRI Trading. Average provisional concentrate payment grades have been 2,903 g/t Ag and 34.74 g/t Au.
  • Silver Tiger Metals Inc., released results of a Preliminary Feasibility Study (PFS) for its El Tigre project in Sonora. Highlights of the PFS (all figures in US dollars) include an after-tax net present value (NPV) using a discount rate of 5% of $22M, with an after-tax IRR of 40% and payback period of 2 years; 10-year mine life recovering a total of 43M payable Oz AgEq or 510K payable Oz AuEq, consisting of 9M Oz Ag and 408K Oz Au; total project undiscounted after-tax cash flow of $318M; initial capital costs of $86.8M, which includes $9.3M of contingency costs, over an expected 18-month build, expansion capital of $20.1M in year 3 and sustaining capital costs of $6.2M over the life of mine (LOM); average LOM operating cash costs of $973/Oz AuEq, and all in sustaining costs (AISC) of $1,214/Oz AuEq or Average LOM operating cash costs of $12/Oz AgEq, and all in sustaining costs (AISC) of $14/Oz AgEq; average annual production of approximately 4.8M Oz  AgEq or 56.7K Oz AuEq; and three years of production in the Proven category in the Phase 1 Starter Pit. “The PFS is focused on the conventional open pit mining economics of the Stockwork Mineralization Zone defined in the updated Mineral Resource Estimate (MRE). The updated MRE also contains an Out-of-Pit Mineral Resource that Silver Tiger plans to study in a Preliminary Economic Assessment in H1-2025.
  • Luca Mining Corp., commenced an underground exploration program at its Tahuehueto mine in Durango. The company plans to drill up to 5,000m of diamond core drilling in 26 holes over the next 4-6 months. “The drill plan takes advantage of recently developed areas to potentially extend the resource along the modeled veins”.

ON DEALS AND CORPORATE ISSUES

  • Quetzal Copper Corp., announced results of its annual general meeting of shareholders (Cristinas project, Chihuahua).
  • Silver Storm Mining Ltd., reported that the British Columbia Securities Commission issued a failure to file cease trade order (CTO) due to the company’s failure to file its annual financial statements, management´s discussion, and analysis and related officer certifications for the financial year ended March 31, 2024, and its unaudited interim financial statements, related management´s discussion, and analysis and officer certifications for the three months ended June 30, 2024.  This delay is attributed to complexities related to the acquisition of the La Parrilla Silver Mine Complex. The company expects to complete its annual filings by approximately October 24, 2024, with interim filings to follow shortly after. As a result of the CTO, trading of the company’s shares on the TSX Venture Exchange has been suspended, and its listing has been moved from the OTCQB Market to the OTC Pink Open Market until the required documents are filed.
  • Starcore International Mines Ltd., announced management changes of its Board of Directors as one of its members will be stepping down from the Board due to the requirements of her professional career. A new member will be joining the Board as her replacement (San Martin mine, Queretaro).
  • GR Silver Mining Ltd., reported the replacement of its CEO by retirement effective immediately (Plomosas project, Sinaloa).
  • Heliostar Metals Ltd., received regulatory approval from the Comisión Federal de Competencia Económica (COFECE) with respect to the pending acquisition of the Mexican business unit from Florida Canyon Gold Inc., which is anticipated in early November 2024 (San Agustin and El Castillo mines in Durango).
  • Centenario Gold Corp., amended its Eden property option agreement located near Cosala, Sinaloa. Under the existing terms of the agreement, the company was required to make a cash payment of USD $60K on December 23, 2024, and a final payment of USD $425K on March 23, 2025, but now with the amendment, Centenario has extended the payment schedule over 2½ years while maintaining a total exploration expenditure requirement of $3M, with approximately 1.47M already spent as of June 30, 2024. future payments are shown in the amended payment schedule below:
  • Southern Silver Exploration Corp., reported results from its annual general meeting of shareholders (Cerro Las Minitas project, Durango).
  • Fuerte Metals Corporation reported that its common shares have been approved to trade on the OTC Market’s Group Inc.’s OTCQB Venture Market in the United States, under the ticker symbol FUEMF (Cristina project, Chihuahua). 
  • Xali Gold Corp., announced that Kappes, Cassiday and Associates (KCA) is progressing well on the El Oro tailings project in Mexico, having made a recent payment of USD $1M as part of the purchase agreement. KCA expects to begin production within 12 to 18 months and is required to make minimum royalty payments of USD $50K to Xali every six months.

ON SOCIAL RESPONSIBILITY

  • No relevant news.

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

On the picture above, jasperoid related to a low sulphidation epithermal vein system in a project in Zacatecas, Mexico. Photo taken by Miguel A Heredia.

The Mining and Exploration News in Mexico: Highlights on the Fourth Week of September, 2024

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Vuggy Silica

By Miguel A Heredia

During the 39th week of the year (September 23rd to September 29th 2024), at least 28 press releases were announced by companies working in Mexico, and 7 news published by the media, with nine disclosing deals and corporate issues, eight announcing financing rounds, eight commenting on Mexican issues, three reporting resources and development of their properties, three communicating production and financial results, three informing on exploration results, and one discussing social issues. ON MEXICO ISSUES, The marine exploration company Odyssey, in which Carlos Ancira had a shareholding, won to the Mexican government, a USD $37.1M arbitration within the NAFTA. Andrés Manuel López Obrador (AMLO)expropriated from Vulcan Materials a port and a quarry in Quintana Roo, which deepened tensions days before he leaves office. Andrés Manuel Lopez Obrador (AMLO), in a last surprise “play” before concluding his mandate fulfilled his warning and finally took control of a port and a quarry owned by the American company Vulcan Materials, with which maintains a dispute for several years now. AMLO concludes his government with the expropriation of the land and port of the Calica mine, property of the American company Vulcan Materials Company in Quintana Roo. Metal prices hit highs and boost mining companies in the stock market. Kootenay Silver reported the best drilling intercepts in Mexico on the fourth week of September, 2024.  ON EXPLORATION, In Chihuahua, Kootenay released results from five drill holes at its Columba project, and Quetzal Copper reported completion of the phase one exploration and drilling program at it’s the Cristinas project. In Sinaloa, Prismo commenced a 1,250m drill program at its Palos Verdes project. ON MINING, Agnico Eagle announced that it willreport its Q3, 2024 results on October 30, 2024 (Pinos Altos mine, Chihuahua). Sierra Madre Gold and Silver announced that it has generated over USD $2.4M in revenues from its test mining and milling operations at the La Guitarra mine complex in the state of Mexico.  ON FINANCING, Luca Mining announced the successful completion of its brokered private placement, raising a total of CAD $11.3M through a combination of 19,000,000 Listed Issuer Financing Exemption (LIFE) units and an increased non-brokered private placement of 6,126,167 units due to high demand (Campo Morado mine, Guerrero and Tahuehueto mine, Durango). Sonora Desert Copper amended its private placement financing (Cuatro Hermanos project, Sonora). Vizsla Silver announced the closing of over-allotment option in full (Panuco project, Sinaloa). VVC reported a 1-year extension for 57,567,800 Series AG share purchase warrants (Gloria project, Chihuahua). Sonoro Gold closed an over-subscribed non-brokered private placement for gross proceeds of CAD $875K (Cerro Caliche project, Sonora). Goldgroup closed a non-brokered private placement for gross proceeds of CAD$775K (Cerro Prieto mine, Sonora). Luca Mining announced that it closed its fully subscribed brokered private placement for gross proceeds of CAD $8.55M (Campo Morado mine, Guerrero, and Tahuehueto mine, Durango). Royalties Inc., closed a non-brokered private placement for gross proceeds of $105K (Bilbao project, Zacatecas). ON RESOURCES AND DEVELOPMENT, Starcore announced an increase of its Mineral Reserves and Mineral Resources for its San Martin mine in Queretaro as of April 30, 2024. Los Gatos Silver disclosed and updated Mineral Reserves Estimate and Mineral Resource Estimate for its Cerro Los Gatos mine in Chihuahua, and reported an updated mine of life plan. Southern Silver announced a 6,000m drill program at its Cerro Las Minitas project in Durango.  ON DEALS AND CORPORATE ISSUES, Sandstorm Gold declared quarterly cash dividend for 2024 (Mercedes Mine, Sonora). Torex announced the appointment of a new member to its Board of Directors (El Limon-Guajes mine complex, Guerrero). (Vizsla Royalties granted stock options to directors, officers, employees, and consultants of the company (Panuco project, Sinaloa). Prime Mining announced the appointment of a new member to its Board of Directors (Los Reyes project, Sinaloa). Silver Storm provided a bi-weekly update on September 24, 2024, regarding its management cease trade order (MCTO) issued by the British Columbia Securities Commission (La Parrilla mine, Durango). Guanajuato Silver provided an update on the acquisition of El Cubo mine in Guanajuato from Endeavor Silver. Apollo Silver entered into an exploration, earn-in and option agreement with MAG Silver to acquire the Cinco de Mayo project in Chihuahua. Southern Silver granted incentive stock options to various directors, officers, and consultants (Cerro Las Minitas project, Durango). Florida Canyon provided an update on its Mexican transaction, which involves the sale of its interests in several mines to Heliostar Metals Ltd. ON SOCIAL RESPONSIBILITY, Vizsla Silver released its second annual sustainability report (Panuco project, Sinaloa).

ON MEXICO ISSUE

  • The marine exploration company Odyssey Marine Exploration, in which Carlos Ancira, the former president of Altos Hornos de México S.A.B. de C.V., had a shareholding, won an arbitration from the Mexican government protected by NAFTA/TW investor protection. The company was seeking damages in the amount of just over USD $2.3 B and what was finally achieved after the lawsuit was USD $37.1M. The former president of Altos Hornos bought a shareholding in Odyssey for USD $3M in 2015 through his investment vehicle´s Epsilon. The intention of Ancira and its partners was to dredge the seabed of the Gulf of Ulloa, Baja California, on the north Pacific Coast. To extract phosphate, an input used to manufacture fertilizers, a business to which the businessman was dedicated through its firm Agronitrogenados, sold at an extra cost to PEMEX, a scandal that kept the former president of the oil company Emilio Lozoya in jail. Unfortunately, it is a victory that Ancira could not savor, who in September 2021 sold his shareholding in Odyssey, in part to raise the money he promised as a reparation agreement to the Mexican government (in favor of PEMEX) for the Agronitrogenados operation, cause for which he was even detained in the North Prison of CDMX.
  • Andrés Manuel López Obrador (AMLO) expropriated from Vulcan Materials a port and a quarry in Quintana Roo, which deepened tensions days before he leaves office. The government of Mexico declared the land south of Cancun and Playa del Carmen as a protected natural area via decree in the Official Gazette of the Federation, this a few hours after US legislators sought to dissuade such a measure. Vulcan´s shares fell 1.03% to USD $249.73 during the morning of September 24, 2024.  Vulcan had previously said the AMLO´s government actions are illegal and that it would add the latest measures to an ongoing arbitration case in the International Center for Settlement of Investment Disputes of the World Bank. It marks another movement by AMLO (a staunch nationalist) against private business. A new congress with a supermajority of Morena and allies in both chambers began its term last September and since then they have approved a reform of the Judiciary that has raised fear among capitals in Mexico. Claudia Sheinbaum, who will takes office on October 1, 2024 has not publicly commented on the Vulcan issue since her landslide victory, but a year ago said she hoped the company would accept AMLO´s offer to buy its land for MXP $6,500M. Last year, Vulcan sought intervention from Joe Biden administration against what it saw as the threat of a government takeover of the Riviera Maya property. It said that a valuation made by the Mexican government deeply undervalued the assets. On September 23, 2024, a bipartisan group of US senators proposed legislation to pressure Mexico to retract its expropriation plan. Vulcan is not the only foreign company that has sought legal recourse after government intervention. In December, Mexico took control of operations of a hydrogen processing plant owned by French industrial gases maker Air Liquid. Last year, AMLO announced plans to buy USD $6B worth of energy assets from Iberdrola after the Spain Company faced political hostility from Mexico that affected its permits and supply. AMLO also ordered the cancellation of projects including an airport and a brewery plan during his term. The US ambassador to Mexico, Ken Salazar, warned that companies may lose confidence in Mexico as an investment destination as a result of the judicial reform promoted by congress this month. The change eliminates a check on government power by making federal judges democratically elected, including in the Supreme Court of Justice of the Nation (SCJN).
  • Andrés Manuel Lopez Obrador (AMLO), in a last surprise “play” before concluding his mandate fulfilled his warning and finally took control of a port and a quarry owned by the American company Vulcan Materials, with which maintains a dispute for several years now. On September 23, 2024, the head of the executive published a declaration of a protected natural area of an area of more than 53,000 hectares south of Cancun and Playa del Carmen, where the land occupied by Vulcan and an open pit mine of the foreign company are located, dedicated to the extraction of limestone through its subsidiary Calizas Industriales del Carmen (Calica). Vulcan said in a statement that the expropriation of the land and port owned by the company is another escalation and constitutes a new violation of Mexico´s commitments under North American trade agreements, and added that this illegal measure will have a chilling and long-term effect on trade and investment relations between USA and Mexico.
  • AMLO concludes his government with the expropriation of the land and port of the Calica mine, property of the American company Vulcan Materials Company in Quintana Roo, involved in a conflict that has kept it without operations in Mexico for three years. The announcement of the expropriation is not a good sign to attract investment to Mexico and could damage business confidence. In the decree published last September 23, 2024 in the Official Gazette of the Federation, the Mexican government justifies its decision by citing the fourth article of the Constitution in its fifth paragraph, which establishes that “every person has the right to a healthy environment for their development and well-being, so the State will guarantee respect for this right.” Furthermore, it invokes article 27 of the Constitution in its third paragraph, which states that “the nation will at all times have the right to impose on private property the modalities dictated by the public interest.” The decree of the federal Executive declares a protected natural area the area located south of Cancun and Playa del Carmen, where the Vulcan lands are located under the Sac-Tun firm (formerly Calica). The measure is intended to prevent the construction company from extracting limestone from the land it owned for decades and which the AMLO government previously tried to acquire without success. The American company not only considers the expropriation of its investments in Quintana Roo illegal, but also warns of a direct conflict with provisions of the T-MEC. The reason is that the investment chapter of the Treaty between Mexico, the United States and Canada states that “no party shall expropriate or nationalize a covered investment, either directly or indirectly through equivalents to expropriation or nationalization,” except in the following cases: For reasons of public utility; in a non-discriminatory manner; through the payment of prompt, adequate and effective compensation, and in accordance with due legal process. The investment chapter contains provisions on expropriation and compensation, which must provide investors with certainty that their properties and positions will be respected, and guarantee non-discriminatory treatment and prompt, effective and adequate compensation, in cases where that their rights are substantially affected by the actions of the State. According to experts consulted, the Calica issue is very serious, since there are no precedents for similar cases since NAFTA. Although expropriation is not a good sign to attract investment to Mexico and can damage business confidence, this week two large American companies confirmed investment announcements in the country totaling USD $2.9 B.
  • Metal prices hit highs and boost mining companies in the stock market, with the price of silver rising to its highest level in almost 12 years, taking advantage of gold’s rally to all-time highs, as interest rate cuts from Major central banks fueled investment interest in precious metals. Silver futures rose 0.91% on the Chicago Stock Exchange, to USD $32.31 an ounce, after reaching their highest since December 2012, of USD $32.71. Spot gold rose 0.5% to USD $2,670.52 an ounce, having hit an all-time high of USD $2,685.42 earlier in the day. US gold futures for December delivery advanced 0.39% to USD $2,694.9. Copper prices rose to their highest level in nearly 16 weeks, boosted by hopes of firmer demand for metals after China announced fiscal stimulus measures following an easing of monetary policy to boost its sluggish economy. Three-month copper on the London Metal Exchange (LME) broke the psychological level of USD $10,000 per metric ton, touching the highest level since June 7. This Thursday it gained 3.53% to USD $10,084. The securities of the main mining companies operating in Mexico led the gains in Thursday’s session (September 24, 2024) on the Mexican Stock Exchange. The securities of Grupo México and Industrias Peñoles rose 4.18 and 4.23%, respectively. Shares of Grupo México, an industrial conglomerate with interests in the mining and rail transportation industries, are trading at MXP $112.68, their highest level since May 21, 2024. The shares of Industrias Peñoles were quoted at MXP $292.35, their highest level since April 19, 2024. Meanwhile, Fresnillo shares on the BMV rose 21.69%, while those listed in London advanced 2.74 %. With Thursday’s movement, Grupo México gained MXP $35,655M pesos in market capitalization, going from MXP $842,026M to MXP $877,681M in one day. Industrias Peñoles gained MXP $4,714M in market value, going from MXP $111,488M to MXP $116,202M.
  • Kootenay Silver Inc., reported the best drilling intercepts in Mexico on the fourth week of September, 2024. Details are shown in the table below:

ON EXPLORATION

  • Kootenay Silver Inc., released results from five drill holes at its Columba project in Chihuahua.  The batch reported comprises two step-out holes and three “infill” holes designed to test a large gap in drilling on the D-Vein. Drilling continues to hit high grades of silver, over good widths and has now expanded the D-Vein strike length to 1,275 meters from 450 meters at the beginning of the program. Drilling highlights(true width reported)  include holes CDH-24-165 with 739 g/t Ag, 0.3% Pb, and 1% Zn over 0.32m, plus 96 g/t Ag, 0.1% Pb, and 0.3% Zn over 18.18m, including 395 g/t Ag, 0.4% Pb, and 1.8% Zn over 2.37m, including 844 g/t Ag, 0.9% Pb, and 9.5% Zn over 0.37m; and hole CDH-24-166 with 176 g/t Ag, 0.1% Pb, and 0.4% Zn over 21.85m, including 1,020 g/t Ag, 1% Pb, and 2.5% Zn over 0.76m, plus 303 g/t Ag, 0.2% Pb, and 0.7% Zn over 6.87m, including 593 g/t Ag, 0.3% Pb, and 1.8% Zn over 1.91m, including 1,095 g/t Ag, 0.7% Pb, and 5.7% Zn over 0.40m.
  • Quetzal Copper Corp., reported completion of the phase one exploration and drilling program at it’s the Cristinas project in Chihuahua. Quetzal completed three drillholes and a downhole EM (electromagnetic) survey to follow-up on targets generated by surface mapping, sampling, and fixed loop EM surveys. “Each hole evaluated prospective conductors defined by the geophysical surveys. Unfortunately, the limited copper mineralization encountered does not justify further exploration at this time”.
  • Prismo Metals Inc., commenced a 1,250m drill program at its Palos Verdes project in Sinaloa. The goal is to explore the vein system to the west of the fault below the zone of bonanza grade intercepts from the previous campaigns.

ON MINING

  • Agnico Eagle Mines Limited announced that it willreport its Q3, 2024 results on October 30, 2024 after normal trading hours (Pinos Altos mine, Chihuahua).
  • Sierra Madre Gold and Silver Ltd., announced that it has generated over USD $2.4M in revenues from its test mining and milling operations at the La Guitarra mine complex in the state of Mexico, with an average daily production rate of 350 tonnes over the past 30 days. The test mining has been ongoing since June 25, 2024, processing a total of 27,990 tonnes of material. The company aims to increase production to 400 tonnes per day and eventually reach commercial production of 500 tonnes per day by the end of the year. The concentrate grades for silver and gold range from 2,752 g/t to 3,442 g/t Ag and 28.65 to 38.45 g/t Au.
  • Guanajuato Silver Company Ltd., announced that it produced over 3M Oz AgEq at its El Cubo mine in Guanajuato, triggering a USD $1M contingent payment to Endeavour Silver Corp. as part of the 2021 acquisition of El Cubo for USD $15M.

ON FINANCING

  • Luca Mining Corp., announced the successful completion of its brokered private placement, raising a total of CAD $11.3M through a combination of 19,000,000 Listed Issuer Financing Exemption (LIFE) units and an increased non-brokered private placement of 6,126,167 units due to high demand. Key investors include Term Oil Inc. and CEO Dan Barnholden. The funds will be used for ongoing improvements at the Campo Morado mine in Guerrero, exploration drilling at Campo Morado, Guerrero and Tahuehueto, Durango, and general corporate purposes. The financings are set to close on or about September 26, 2024, pending necessary approvals.
  • Sonora Desert Copper Corporation amended its private placement financing. It cancelled 1,700,000 of the $0.10 units issued, for a revised total of funds raised of $840,750 (was $1,010,750) and shares and warrants issued 8,407,500 (was 10,107,500). The company cancelled 1,700,000 common shares and 1,700,000 common share purchase warrants which had been issued to a subscriber who, subsequent to the closing, withdrew their subscription (Cuatro Hermanos project, Sonora).
  • Vizsla Silver Corp., announced the closing of over-allotment option in full, generating additional gross proceeds of CAD $9.75M. Net proceeds of the offering will be used to advance the exploration, drilling and development of the company’s Panuco project, as well as for working capital and general corporate purposes.
  • VVC Exploration Corporation reported a 1 year extension for 57,567,800 Series AG share purchase warrants, presently expiring on September 30, 2024. “The warrants, exercisable at $0.075 per share, were issued pursuant to a Private Placement in September 2020 with a 3-year expiry and were extended last September for an additional year. The warrants have been out-of-the-money for some time.  If approved by the TSXV, the warrants will expire on September 30, 2025” (Gloria project, Chihuahua).
  • Sonoro Gold Corp., closed an over-subscribed non-brokered private placement of 17.5M units at a price of CAD $0.05 per unit for gross proceeds of CAD $875K. Net proceeds will be used to fund the ongoing development of its Cerro Caliche project in Sonora, and for general working capital purposes (Cerro Caliche project, Sonora).
  • Goldgroup Mining Inc., closed a non-brokered private placement of 15.5M units at a price of CAD $0.05 per unit for gross proceeds of CAD$775K. Net proceeds will be used to increase crushing capabilities from 2,250 tpd to 4,500 tpd at the Company’s Cerro Prieto heap leach gold mine in Sonora, and for general working capital requirements.
  • Luca Mining Corp., announced that it closed its fully subscribed brokered private placement for gross proceeds of CAD $8.55M by the issuance and sale of 19M units at a price of CAD $0.45 per unit. The funds will be used for ongoing improvements at the Campo Morado mine in Guerrero, exploration drilling at Campo Morado, Guerrero and Tahuehueto, Durango, and general corporate purposes.
  • Royalties Inc., closed a non-brokered private placement of 3M common shares at a price of $0.035 per share for gross proceeds of $105K. Funds will be used to cover overhead and Mexico expenses (Bilbao project, Zacatecas).

ON RESOURCES AND DEVELOPMENT

  • Starcore Mines International Ltd., announced an increase of its Mineral Reserves and Mineral Resources for its San Martin mine in Queretaro as of April 30, 2024. The updated mineral reserves and mineral resources estimates are reported net of the production from the San Martin property (see tables below):
  • Los Gatos Silver Inc., disclosed and updated Mineral Reserve Estimate and Mineral Resource Estimate for its Cerro Los Gatos mine (CLG) in Chihuahua.  The company has 70% interest in the Los Gatos JV, which in turn owns the Cerro Los Gatos mine. Mineral Reserve and Mineral Resource by category with an effective day July 1, 2024 are summarized in the next tables:

The company also reported a strong free cash flow throughout the updated life of mine (LOM), with a mine life extended to the end of 2032, which adds two years of additional reserves and a 36% increase in AgEq production compared with the prior LOM plan; a low by-product AISC of $6.29 per Oz of payable of silver, and co-product AISC of $14.89 per Oz of payable silver equivalent; an average annual after-tax free cash flow of $80M, resulting in an after-tax NPV of $539M based on 2024 reserve price assumptions at a silver price of $23/Oz; an average annual after-tax free cash flow of $111M, resulting in an after-tax NPV5 of $760M, at a silver price of $30/Oz or an average annual after-tax free cash flow of $136M, resulting in an after-tax NPV5 of $935M, at a silver price of $35/Oz; and an average annual production over the LOM of 6.1M Oz Ag, 67M Lb Zn and 50M Lb Pb, or 12.9M Oz AgEq production.

  • Southern Silver Exploration Corp., announced a 6,000m drill program at its Cerro Las Minitas project in Durango.  Goal of the drill program is to “demonstrate further lateral projections of shallow high-grade mineralization adjacent to planned mine and mill infrastructure in the area of the Eastern Deposits (South Skarn, Mina La Bocona and North Felsite), which also would provide additional tonnage for extraction early in any planned mining schedule. Further drilling beyond the 6,000m current program would test down-dip of the known eastern deposits which could further enhance the continued resource potential of the project”. The program is anticipated to commence in the coming weeks.

ON DEALS AND CORPORATE ISSUES

  • Sandstorm Gold Royalties declared quarterly cash dividend for 2024in the amount of $0.02per common share to shareholders of record as of the close of business on October 15, 2024. The dividend will be paid on October 25, 2024 (Mercedes Mine, Sonora).
  • Torex Gold Resources Inc., announced the appointment of a new member to its Board of Directors, effective October 1, 2024 (El Limon-Guajes mine complex, Guerrero).
  • Vizsla Royalties Corp., granted 1,961,000 stock options at an exercise price of $1.86 to directors, officers, employees, and consultants of the company. The Options are exercisable for a period of five years and will vest over the next two years (Panuco project, Sinaloa).
  • Prime Mining Corp., announced the appointment of a new member to its Board of Directors (Los Reyes project, Sinaloa).
  • Silver Storm Mining Ltd., provided a bi-weekly update on September 24, 2024, regarding its management cease trade order (MCTO) issued by the British Columbia Securities Commission. The MCTO was announced due to delays in filing the company’s annual financial statements and related documents for the fiscal year ending March 31, 2024, primarily caused by complexities in the acquisition of the La Parrilla assets in Durango. The company has until September 27, 2024, to complete its annual filings and expects to file interim filings shortly thereafter. The MCTO does not affect the ability of other shareholders to trade the company’s securities.
  • Guanajuato Silver Company Ltd., announced that in order to comply with the acquisition or El Cubo from Endeavour Silver Corp., for USD $15M, the transaction included contingent payment that would see Endeavour paid an additional USD $1M once 3M Oz AgEq had been produced at El Cubo. As part of the agreement, Guanajuato Silver can settle half of this payment with 2,753,265 common shares at CAD $0.245 each. Endeavour will settle the remaining balance with approximately 2,720,000 shares at CAD $0.25 each. Ocean Partners UK Limited will also accept shares for USD $1.8M in outstanding payments under the Gold Loan Credit Facility. All settlements are subject to TSX Venture Exchange approval and a four-month hold period.
  • Apollo Silver Corp., entered into an exploration, earn-in and option agreement with MAG Silver Corp., and its subsidiary Minera Pozo Seco S.A.de C.V. (MPS), to acquire the Cinco de Mayo project in Chihuahua. The agreement allows Apollo Silver to acquire MAG’s subsidiary, MPS, which owns the Project’s mineral concessions, contingent on obtaining necessary licenses and completing 20,000m of drilling within five years. The company will issue common shares to MAG equivalent to 19.9% upon exercising the option and will manage all exploration activities.
  • Southern Silver Exploration Corp., granted incentive stock options to various directors, officers, and consultants to purchase 6.5M common shares of the company at an exercise price of $0.31 per share, exercisable for a period of five years (Cerro Las Minitas project, Durango).
  • Florida Canyon Gold Inc., provided an update on its Mexican Transaction, which involves the sale of its interests in the San Agustin mine and El Castillo mine in Durango, La Colorada mine in Sonora, Cerro del Gallo project in Guanajuato, and San Antonio project in Baja California Sur to Heliostar Metals Ltd. The transaction is expected to close in Q4, 2024, pending necessary approvals, including from Mexico’s Federal Economic Competition Commission (COFECE). Additionally, Florida Canyon has filed management information circular for a special meeting on October 25, 2024, where shareholders will vote on a proposed arrangement with Integra Resources Corp., which aims to acquire all outstanding Florida Canyon shares at a specified exchange ratio. The completion of both the Mexican Transaction and the arrangement is subject to various approvals and customary closing conditions 

ON SOCIAL RESPONSIBILITY

  • Vizsla Silver Corp., released its second annual sustainability report, highlighting the Company’s ongoing commitment to Environmental, Social and Governance (ESG) practices. The company cultivated approximately 4,000 native trees, accounting for 15 different species that will serve in future restoration activities; provided essential medical care to nearly 550 community members; invested nearly CAD $100K in the local community, bringing our cumulative total investment to over CAD $400K; and initiated the process of updating their social impact assessment and formalizing the Social Management Plan (Panuco project, 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 picture above, core showing vuggy silica in a high-sulphidation epithermal system in a project in Jalisco, Mexico. Photo taken by Miguel A Heredia.

The Mining and Exploration News in Mexico: Highlights on the Second Week of September, 2024

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By Miguel A Heredia

During the 37th week of the year (September 9th to September 15th 2024), at least 25 press releases were announced by companies working in Mexico, with eight disclosing deals and corporate issues, eight announcing financing rounds, five reporting resources and development of their properties, two communicating production and financial results, one commenting on Mexican issues, and one informing on exploration results. ON MEXICO ISSUES, Fuerte Metals reported the best drilling intercepts in Mexico on the second week of September, 2024. ON EXPLORATION, In Sonora, Riverside and its JV partner Fortuna Mining commenced a drill program at the Cecilia project. ON MINING, Alamos Gold provided updated three-year production and operating guidance for its Mulatos mine in Sonora. Starcore announced that it has received approval from the General Deputy for Environmental Control, to extend its dry stack tailings at its San Martin mine in Queretaro. ON FINANCING, GR Silver announced its intention to undertake a non-brokered private placement for gross proceeds of up to $1.76M (Plomosas project, Sinaloa). Sonoro Gold announced a fully committed, non-brokered private placement for gross proceeds of CAD $700K (Cerro Caliche project, Sonora). First Majestic gave notice of a Share Repurchase Program, approved by the Toronto Stock Exchange, allowing the company to buy back up to 10M common shares over a 12-month period starting September 12, 2024 (San Dimas mine, Durango). Heliostar Metals has arranged two debt facilities for aggregate gross proceeds of up to USD $10M to support the acquisition of production assets (Ana Paula project, Guerrero). Luca Mining announced fully subscribed life offering and concurrent non-brokered private placement of up to CAD $1.45M for combined proceeds of CAD $10M (Campo Morado mine, Guerrero). GR Silver declared that it is increasing its previously announced private placement offering from 11M units to 12.5M units for gross proceeds of $2M (Plomosas project, Sinaloa). Sierra Madre announced a non-brokered private placement for gross proceeds of up to $0.5M (La Guitarra mine, State of Mexico). ON RESOURCES AND DEVELOPMENT, GoGold provided an update on the Los Ricos South and Los Ricos North projects in Jalisco. Mammoth Resources received a competitive quote for its Tenoriba project in Chihuahua indicating a cost of approximately USD $1.50 per Oz AuEq for an exploration target of 1.8M Oz Au. Fuerte Metals (former Atacama Copper Corporation) reported results from five holes of a diamond drill program at its Cristina project in Chihuahua. Pan American Silver reported Mineral Reserves and Mineral Resources as at June 30, 2024 for their mines and advanced projects in Mexico.  ON DEALS AND CORPORATE ISSUES, Alamos Gold announced the appointments of two new members to its Board: its new Senior Vice President, Corporate Development, and Investor Relations and its new Vice President, Business Development, and Investor Relations (Mulatos mine, Sonora).  Prismo Metals granted incentive stock options to certain Directors, Officers, and Consultants of the company (Palos Verdes project, Sinaloa). Sailfish Royalty declared Q3, 2024 dividend (Gavilanes property, Durango). Ranchero Gold announced that it has closed the sale of its Mexican subsidiary. Alamos Gold declared that it has been recognized as a top performer by the Toronto Stock Exchange (TSX) with inclusion in the TSX30 (Mulatos mine, Sonora). Silver Storm provided an update on the status of its management cease trade order issued by the British Columbia Security Commission on July 30, 2024 (La Parrilla mine, Durango). Galore Resources announced a status report with regards a management cease trade order issued by the British Columbia Securities Commission on July 30, 2023 regarding the postponement in filing of its annual financial statements (Dos Santos project, Zacatecas). Altius Mineral reported that its approximately 58% owned subsidiary Altius Renewable Royalties Corporation (ARR) entered into a definitive arrangement agreement  with an affiliate of Northampton Capital Partners, LLC to acquire to acquire all of the issued and outstanding common shares of ARR (Cuale project, Jalisco). ON SOCIAL RESPONSIBILITY,  no relevant news.

ON MEXICO ISSUE

  • Fuerte Metals Corporation, reported the best drilling intercepts in Mexico on the second week of September, 2024. Details are shown in the table below:

ON EXPLORATION

  • Riverside Resources Inc., and its JV partner Fortuna Mining Corp., commenced a 2,500ml drill program consisting in 8 holes to initially test three targets: Cerro Magallanes Breccia, East target, and Mesa target, at its the Cecilia project in Sonora. A budget of USD $800K has been estimated for this phase of drilling.

ON MINING

  • Alamos Gold Inc., provided updated three-year production and operating guidance for its Mulatos mine in Sonora (All amounts are in USD dollars). The company estimates to produce over 185K-195K Oz Au in 2024, at cash and AISC of $925-$975 and $1,000-$1,050 per Oz Au respectively; and over 120K-130K Oz Au in 2025 and 2026. 
  • Starcore International Mines Ltd., announced that it has received approval from the General Deputy for Environmental Control, to extend for ten years of life expectancy the handling of its dry stack tailings at its San Martin mine in Queretaro.

ON FINANCING

  • GR Silver Mining Ltd., announced its intention to undertake a non-brokered private placement of up to 11M units at a price of $0.16 per unit for gross proceeds of up to $1.76M. Net proceeds will be used for exploration targeting resource expansion in the San Marcial area of the Plomosas project in Sinaloa.
  • Sonoro Gold Corp., announced a fully committed, non-brokered private placement for gross proceeds of CAD $700K, consisting of 14M units at a price of CAD $0.05 per unit. Net funds will be used to fund the ongoing development of its Cerro Caliche property in Sonora as well as working capital. 
  • First Majestic Silver Corp., gave notice of a Share Repurchase Program, approved by the Toronto Stock Exchange, allowing the company to buy back up to 10M common shares over a 12-month period starting September 12, 2024. This represents approximately 3.32% of its outstanding shares. The repurchases will be conducted at prevailing market prices, with a daily maximum limit based on average trading volume. The company believes this program will enhance shareholder value by increasing their equity interest in the company (San Dimas mine, Durango).
  • Heliostar Metals Ltd., has arranged two debt facilities for aggregates gross proceeds of up to USD $10M to support the acquisition of production assets. The Company intends to use the net proceeds from the working capital facility for general working capital requirements and to fund the advancement of its development projects. The financing includes a working capital facility of up to USD $5M with Ocean Partners, available immediately at an interest rate of 3-months Secured Overnight Financing Rate (SOFR) + 4%, maturing on December 31, 2025. Additionally, there is a transaction closing facility of up to USD $5M with Deans Knight, intended for a closing payment to acquire a Mexican asset portfolio from the former Argonaut Gold, with a 15% interest rate and maturing on November 30, 2026. This financing structure aims to minimize equity dilution to less than 1% and will be repaid from operating cash flow.
  • Luca Mining Corp., announced fully subscribed life offering of CAD $8.55M consisting of 19M units at a price of CAD $0.45 per unit and concurrent  non-brokered private placement of up to CAD $1.45M consisting of 3,222,222 units at a price of CAD $0.45 per unit for combined proceeds of CAD $10M. Net proceeds will be used for ongoing work on the Campo Morado mine in Guerrero, commissioning of Tahuehueto mill in Durango, and for general corporate purposes.
  • GR Silver Mining Ltd., declared that it is increasing its previously announced private placement offering from 11M units at a purchase price of $0.16 for gross proceeds of up to $1.76M to 12.5M units at a price of $0.16 for gross proceeds of $2M. Net proceeds will be used for exploration targeting resource expansion in the San Marcial area of the Plomosas project in Sinaloa.
  • Sierra Madre Gold and Silver Ltd., announced a non-brokered private placement for gross proceeds of up to $0.5M, consisting of up to 1.25M common shares at a price of $0.40 per share. Net proceeds will be used for future marketing activities and general working capital (La Guitarra mine, State of Mexico).
  • Aura Minerals Inc., reported that its subsidiary Aura Almas Mineração SA, held an extraordinary shareholders´ general meeting where they approved the issuance of 500K non-convertible debentures, totaling BRL $500M. These debentures, with a nominal unit value of BRL $1,000 each, will be distributed publicly under automatic registration and will accrue interest based on the interbank deposit rate plus a spread, with a term of six years. The funds raised will be used for cash reinforcement and ordinary management of Almas’s business.

ON RESOURCES AND DEVELOPMENT

  • GoGold Resources inc., provided an update on the Los Ricos South and Los Ricos North in Jalisco, nearing completion of a definitive feasibility study for Los Ricos South. The definitive feasibility study reworks the mine plan to focus on a 12-year underground mining operation, utilizing a 2,000 tonne per day capacity and the longitudinal sub-level long-hole mining method. This approach minimizes surface disturbance and avoids open pit permit issues. The geological team is also remodeling Los Ricos North for underground mining. An extensive metallurgical test program at SGS Lakefield supports the feasibility study, confirming a conventional whole ore leaching process to produce silver-gold doré bars and copper precipitate. The company is finalizing a power supply agreement with Comision Federal de Electricidad (CFE) and has secured land rights for the processing mill. Mill design is 90% complete, featuring conventional crushing, grinding, cyanide leaching, and a SART circuit. GoGold is also re-logging drill holes at Los Ricos North to convert the 2023 PEA mine plan into an underground model, with a revised PEA/PFS expected in 2025.
  • Mammoth Resources Corp., received a competitive quote for its Tenoriba project in Chihuahua indicating a cost of approximately USD $1.50 per Oz AuEq for an exploration target of 1.8M Oz Au. Based on the most competitive of the quotes received, an all inclusive cost of USD $272/m drilled. The company plans to focus on defining a shallow Oxide-Mixed resource, with initial drilling phases aimed at confirming the potential of the site. The first phase of drilling in the Carneritos area, consisting of 60 drill holes to depths of approximately 50 m for a total of 3,000 m drilling, would cost as little as USD $816K with a target of 530,688 Oz AuEq, or a cost of USD $1.54 per Oz AuEq, while the second phase of drilling in the Carneritos, Masuparia, and Moreno targets consisting of 102 drill holes for a total of 5,100m, would cost approximately USD $1,387,200, with a target of 380,322 Oz AuEq, or a cost of USD $3.65 per Oz AuEq. This cost-effective drilling strategy positions Mammoth favorably in the precious metals market, highlighting the potential for significant resource definition at a low cost.
  • Fuerte Metals Corporation (former Atacama Copper Corporation) reported results from five holes of a diamond drill program at its Cristina project in Chihuahua (true widths reported). Drilling highlights include holes ACD24-238 with 2.1 g(/t Au, 24 g/t Ag,0.2% Zn, 0.1% Pb, and 0.06% Cu (2.7 g/t AuEq) over 12.5m, including 7 g/t Au, 11 g/t Ag,0.1% Zn, 0.05% Pb, and 0.04% Cu (7.3 g/t AuEq) over 2.5m; hole ACD24-240 with 1.6 g/t Au, 118 g/t Ag, 0.6% Zn, 0.3% Pb, and 0.07% Cu (3.8 g/t AuEq) over 4.2m, including 2 g/t Au, 297 g/t Ag, 1.7% Zn, 0.5% Pb, and 0.16% Cu (7.5 g/t AuEq) over 1.5m, plus 1 g/t Au, 36 g/t Ag, 0.4% Zn, 0.2% Pb, and 0.13% Cu (2 g/t AuEq) over 12m; and hole ACD24-239 with 1.1 g/t Au, 37 g/t Ag, 0.3% Zn, 0.1% Pb, and 0.06% Cu (1.9 g/t AuEq) over 10m, including 5.4 g/t Au, 167 g/t Ag, 1.9% Zn, 0.8% Pb, and 0.12% Cu (9.2 g/t AuEq) over 0.9m. The company has now reported twenty holes totalling 5,411.5m of drilling as part of a 40–50 hole, 21,000m drill program. Assuming positive results, the company intends to commence a Preliminary Economic Assessment of an underground mine at Cristina project.
  • Tocvan Ventures Corp., provided an update on its Pilar project in Sonora. The company is advancing Pilar project with ongoing surface exploration and preparations for upcoming drilling phases. The company plans to conduct between 1,200m to 2,000m of core drilling and 1,700m to 2,500m of RC drilling by the end of the year, focusing on resource definition in the Main Zone and surrounding areas. A renewed drilling contract has been established for 3,000m to 5,000m of core drilling, complementing a previous 10,000m RC drilling contract. Additionally, planning for a pilot plant to evaluate 50,000 tonnes of material is underway, with permitting expected to be completed by Q4 2024. The company is optimistic about the resource potential at Pilar, supported by extensive surface sampling and positive preliminary results from exploration activities.
  • Pan American Silver Corp., reported Mineral Reserves and Mineral Resources as at June 30, 2024 for their mines and advanced projects in Mexico. At La Colorada Skarn, Zacatecas, the company reported 265.4M tonnes of 2.8% Zn, 1.4% Pb, and 36 g/t Ag in Indicated Resources for a total of 308.7 M Oz Ag, and 61.7M tonnes of 2.6% Zn, 0.9% Pb, and 30 g/t Ag in Inferred Resources for a total of 58.6M Oz Ag. At La Colorada, Zacatecas, Pan American reported 3.2M tonnes of 305 g/t Ag and 0.2 g/t Au in Proven Reserves for a total of 31.4M Oz Ag and 0.2K Oz Au, and 5.8M tonnes of 296 g/t Ag and 0.19 g/t Au in Probable Reserves for a total of 55.2M Oz Ag and  35.3K Oz Au. It also reported 0.4M tonnes of 231 g/t Ag and 0.11 g/t Au in Measured Resources for a total of 2.7M Oz Ag and 1.2K Oz Au, 2.1M tonnes of 181 g/t Ag and 0.27 g/t Au in Indicated Resources for a total of 12.2M Oz Ag and 18.4K Oz Au, and 12.4M tonnes of 235 g/t Ag and 0.19 g/tAu in Inferred Resources for a total of 93.8M Oz Ag and 74.4K Oz Au. At Dolores, Chihuahua, the company reported 1.2M tonnes of 16 g/t Ag and 0.35 g/t Au in Proven Reserves for a total of 0.6M Oz Ag and 13.3K Oz Au. It also reported 3M tonnes of 30 g/t Ag and 0.41 g/t Au in Measured Resources for a total of 2.9M Oz Ag and 39.4K Oz Au,  0.6M tonnes of 73 g/t Ag and 1.4 g/t Au in Indicated Resources for a total of 1.5M Oz Ag and 28.8K Oz Au, and 0.9M tonnes of 56 g/t Ag and 1.65 g/t Au in Inferred Resources for a total of 1.6M Oz Ag and 45.8K Oz Au. At La Bolsa, Sonora the company reported 10.8M tonnes of 10 g/t Ag and 0.7 g/t Au in Measured Resources for a total of 3.5M Oz Ag and 242.8K Oz Au, 10.6M tonnes of 8 g/t Ag and 0.54 g/t Au in Indicated Resources for a total of 2.7M Oz Ag and 184.3K Oz Au, and 13.7M tonnes of 8 g/t Ag and 0.51 g/t Au in Inferred Resources for a total of 3.3M Oz Ag and 224.6K Oz Au..

ON DEALS AND CORPORATE ISSUES

  • Alamos Gold Inc., announced the appointments of two new members to its Board: its new Senior Vice President, Corporate Development, and Investor Relations and its new Vice President, Business Development, and Investor Relations (Mulatos mine, Sonora). 
  • Prismo Metals Inc., granted a total of 1,275,000 stock options to certain Directors, Officers of the company, and 200,000 stock options to certain Consultants of the company, at an exercise price of $0.025 for a period of 5 years. The company also issued an aggregate of 525,000 restricted share units as well as 275,000 stock appreciation rights to certain Director and Officers (Palos Verdes project, Sinaloa).
  • Sailfish Royalty Corp., declared Q3, 2024 dividend in the amount of USD $0.0125 per common share that will be payable on October 15, 2024 to Sailfish shareholders as of the close of business on September 30, 2024 (Gavilanes property, Durango).
  • Ranchero Gold Corp., announced that it has closed the sale of its wholly-owned Mexican subsidiary Minera y Metalurgia Paika, S.A. de C.V. , to an arm’s length party purchaser.
  • Alamos Gold Inc., declared that it has been recognized as a top performer by the Toronto Stock Exchange (TSX) with inclusion in the TSX30. The annual ranking recognizes the 30 top performing stocks based on their dividend-adjusted share price performance over a three-year period. Alamos’ share price increased 134% over the trailing three-year period. (Mulatos mine, Sonora).
  • Silver Storm Mining Ltd., provided an update on the status of its management cease trade order issued by the British Columbia Security Commission on July 30, 2024, due to delays in filing annual financial statements for the year ended March 31, 2024. The company anticipates completing the required filings by September 27, 2024, and expects interim filings to follow within five business days (La Parrilla mine, Durango).
  • Galore Resources Inc., announced a status report with regards a management cease trade order issued by the British Columbia Securities Commission on July 30, 2023. The company announced  delays in filing its annual and first-quarter financial statements due to the time required by new auditors to complete the audit. The company expects to file the year-end financial statements by September 27, 2024, and the first-quarter financial statements by October 2, 2024. There have been no material changes or further anticipated defaults in financial statement filing requirements, and all relevant information has been disclosed (Dos Santos project, Zacatecas).
  • Altius Mineral Corporation reported that its approximately 58% owned subsidiary Altius Renewable Royalties Corporation (ARR) entered into a definitive arrangement agreement  with an affiliate of Northampton Capital Partners, LLC, to acquire all of the issued and outstanding common shares of ARR other than those indirectly owned by Altius by way of a statutory plan of arrangement for cash consideration of CAD $12 per share for total consideration of approximately CAD $162M (Cuale project, Jalisco).

ON SOCIAL RESPONSIBILITY

  • No relevant news.

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

On the picture above, quartz vein in a low sulphidation epithermal vein system in a project in Zacatecas, Mexico. Photo taken by Miguel A Heredia.