The Mining and Exploration News in Mexico: Highlights on the Second Week of October, 2021

By Jorge Cirett

During the 41st week of the year (October 11th to October 17th, 2021), at least 25 press releases were announced by companies working in Mexico. To note, six companies posted exploration advances on their properties, six released Q3 reports and one on commencement of mining, two on financing and eight more on project development or resource definition and one more on mining concessions acquisitions. ON MEXICO ISSUES, Mexico’s president presented a proposal to change the law in the energy industry, but also restricting lithium exploration and production to the government. Several other elements could be included in the bill, referred to as “strategic minerals”, without elaborating, although a government party senator named cobalt, niquel, rare earths and even copper. ON EXPLORATION, In Sonora, Benjamin Hill Mining released results from geophysical processing and from fluid inclusion studies that support a buried intrusive source for the mineralization at the Benjamin Hill property; Canuc Resources updated on its deep drilling program at San Javier; Colibri Resources received the permit to drill Evelyn. In Chihuahua, Kootenay silver increased land holdings at its Columba project. In Sinaloa, Vizsla Silver presented drilling results from the Tajitos zone at its Panuco project.   ON MINING, Guanajuato Silver commenced mining at El Cubo, in Guanajuato. First Majestic Silver, Golden Minerals, Gold Resource, Magna Gold, Aura Minerals and Avino Silver & Gold Mines presented its Q3 2021 reports. ON FINANCING, Candelaria Mining informed one of its lenders, Accendo Banco, had its operating permit revoked by Mexican authorities. Xali Gold announced Sun River Gold arranged a financing for US$6.5 M for the tailings project at El Oro, Estado de Mexico. ON RESOURCES AND DEVELOPMENT, GR Silver Mining filed a NI-43-101 technical report on the Plomosas project, Sinaloa. Orla Mining provided an update on the construction of the Camino Rojo Oxide project. Prime Mining released further drilling results from Los Reyes, Sinaloa. Fabled Silver Gold released underground drilling results for Santa Maria, in Chihuahua. GoGold Resources reported results from drilling at El Favor, on its Los Ricos North project located in Jalisco. Golden Tag resources is adding 4,500 m to its 2021 drilling program at San Diego, Durango. Capitan Mining reported results from drilling at El Capitan, in Durango. Zacatecas Silver is drilling the Panuco and Las Cruces areas, at its Zacatecas project, results pending.   ON DEALS AND CORPORATE ISSUES, Argonaut Gold acquired from Fresnillo PLC 4,791 ha in key concessions surrounding its San Agustin mine in Durango. ON SOCIAL RESPONSIBILITY, Minera Media Luna, Peñols, Newmont Peñasquito and Pan American Silver informed on community programs in education and health.

ON MEXICO ISSUES

  • Mexico is far from being a powerhouse in lithium production according to the Statistical Review of World Energy 2021 by BP. Australia, Chile and China hold 81.2% of reserves and 86.5% of lithium production, whereas Argentina, Brazil, Portugal, the United States and Zimbabwe account for 20.5% of reserves and 12.8% of the production. Camimex (Cámara Minera de México) points that the constitutional reform presented by the Mexican president lacks technical support, as even if there are several lithium projects in Mexico, none has proven economic viability. The most visible of these projects, in Sonora, is said to be the largest lithium prospect in the Globe, but its economic viability has still to be proven, as to date there is not a single mine of lithium in clays in the World.
  • Mexico will not grant lithium concessions, said the Mexican president. He stated that even if his electricity reform is not approved by congress, his government has the power to reject any request for a concession to mine lithium. “We will deny any request for a concession to mine lithium and we have the power to do so. We want this to be established in the constitution, lithium belongs to the state”.
  • Nationalistic views with control on “strategic minerals” have been voiced by Morena, the party in power in Mexico. Besides the explicit aim by the President to save all lithium extracting and processing activities for the government, his recent proposal also refers, without elaborating, to be applied in other “strategic minerals”. A senator form Morena mentioned these other minerals could include cobalt, nickel, rare earths and copper, although a spokeswoman from the Economy Secretariat mentioned that the list of strategic minerals was to be provided by the Mexican Geological Survey at a later date.

ON EXPLORATION

  • Canuc Resources Corp. updated on the exploration program at its San Javier project in Sonora. Three holes have been completed and a fourth one is in progress, currently at 922 m of depth and ongoing. Chalcopyrite has been encountered from 302 m and is still visible at 922 m of depth. “The drill hole has intersected a broad zone of variably stockworked and brecciated Barranca sediments with minor andesitic dykes. The Barranca sediments show contact metamorphism from about 461 m and downward, variable amounts of magnetite bearing veinlets, stringers and breccia matrix throughout”. The first two holes intercepted Barranca Formation sedimentary rocks with magnetite veinlets and best intercepts of 2.35 m @ 126 gpt Ag and 2.0 m @ 243 gpt Ag. The third hole was drilled on the Tarahumara Formation volcanic rocks for 500.5 m before being terminated due to drilling problems, intercepting several volcanic lithologies, chalcocite from 38 m of depth and sulfides including chalcopyrite from 332 m. Scattered gold and copper values on short intervals were intercepted, of up to 1.19 gpt Au and 0.41% Cu. Results for the current hole are still pending.
  • Colibri Resource Corp. received the needed permit to drill up to 56 holes at the Evelyn project in Sonora. “The fully funded drill program of up to 10,000 metres is expected to be conducted in two phases”.
  • Kootenay Silver Inc. increased its land holdings at its Columba project in Chihuahua. The company applied for a 10,825 hectare concession, supporting the decision to do so on the high-grade silver intercepts on drilling of the property.
  • Vizsla Silver Corp. presented the results from 23 new drill holes from the Tajitos vein at its Panuco project in Sinaloa. Highlighted true width intercepts comprise 1.38 m @ 1.16 gpt Au, 79 gpt Ag; 1.34 m @ 7.94 gpt Au, 960 gpt Ag; 0.70 m @ 4.16 gpt Au, 2,082 gpt Ag; 2.15 m @ 1.09 gpt Au, 188 gpt Ag; 1.38 m @ 2.83 gpt Au, 527 gpt Ag; 8.7 m @ 0.51 gpt Au, 99 gpt Ag; 1.99 m @ 2.46 gpt Au, 615 gpt Ag; 0.86 m @ 3.37 gpt Au, 315 gpt Ag; 1.39 m @ 3.26 gpt Au, 73 gpt Ag; 1.3 m @ 2.47 gpt Au, 600 gpt Ag; 1.50 m @ 9.90 gpt Au, 2,607 gpt Ag; 0.7 m @ 5.73 gpt Au, 1,115 gpt Ag; 4.38 m @ 1.62 gpt Au, 216 gpt Ag. The footprint of the Tajitos zone has been recognized for 800 m along strike and 300 m of depth.
  • Benjamin Hill Mining Corp. informed the seven kilometer long trend of epithermal mineralization at its Benjamin Hill project in Sonora is related to a well-defined magnetic anomaly. A magnetic high more than 12 kilometers long and 4 km wide lies beneath the surface, crossing the property in a N-NE orientation, with the Au-Cu mineralization parallel to the crest of the magnetic high.  “Our hypothesis explains that the magnetic anomaly corresponds to a partially exhumed fertile pluton. We suggest the mineralization seen at surface was driven by the heat engine of a buried pluton providing hydrothermal fluids that formed mineralized tabular bodies enriched with Au, Ag, and Cu (i.e. veins and breccias), as well as fluids that caused hydrothermal alteration halos (phyllic, epidote-magnetite and argillic alteration)…”.
  • Mammoth Resources Corp. updated on drilling at its Tenoriba project in Chihuahua. The company informed heavy rainfall during August and September is subduing by now, and that they expect an increase in the drilling rate that produced only 420 m of core in 8 weeks. “Mammoth intends to initially drill 2 – 4 holes within each target zone then move to another target zone to drill a similar number of holes”. Results on the first holes are pending.
  • Benjamin Hill Mining Corp. informed on results of fluid inclusion studies at its Benjamin Hill property in Sonora. The salinity and homogenization temperatures point to an epithermal system with an overprinting magmatic influence, and exhumation depths  between 150 m and 750 m in the mineralized structures. “This observation combined with recent geophysical data, supports the hypothesis of the existence of a mineralized plutonic source with a high possibility for Au-Cu metallic enrichment and porphyry potential”.

ON MINING

  • Guanajuato Silver Company Ltd. commenced to process silver-gold ore at its El Cubo mine and mill in Guanajuato. Prior to the start of mill operations, 20 K tonnes of material from El Cubo were mined and stockpiled, to be processed at 750 tonnes per day (tpd) in the plant with a capacity for 1,500 tpd, or over 500 K tonnes per year.
  • First Majestic Silver Corp. presented production results for the third quarte 2021, including figures from its three Mexican operations. At San Dimas, Durango, 214.2 K tonnes were processed at a rate of 2,328 tpd and a grade of 289 gpt Ag, 3.14 gpt Au, recovering 95% Ag, 96% Au to produce 20,767 Oz Au, 1.89 M Oz Ag. At Santa Elena in Sonora 234.9 K tonnes were processed grading 74 gpt Ag, 1.04 gpt Au, recovering 91% Ag, 96% Au to produce 508.6 K Oz Ag, 7,498 Oz Au. At La Encantada in Coahuila, 263.6 K tonnes were processed grading 134 gpt Ag, 0.02 gpt Au, recovering 80% Ag, 90% Au to produce 905 K Oz Ag, 114 Oz Au.
  • Golden Minerals Co. reported third quarter 2021 production from its Rodeo mine in Durango. The mill processed an average of 532 tpd at a grade of 4.0 gpt Au, recovering 76.5% Au to produce 4,777 Oz Au, 12,196 Oz Ag. Golden’s guidance for 2021 continues between 12 K – 14 K Oz Au and 25 K – 30 K Oz Ag.
  • Gold Resource Corp. presented preliminary third quarter 2021 production results. At its Arista mine in Oaxaca 98 K tonnes were milled at a rate of 1,353 tpd, grading 2.68 gpt Au, 91 gpt Ag, 0.37% Cu, 2.3% Pb, 4.8% Zn, to produce 6,933 Oz Au, 265.8 K Oz Ag, 1,808 tonnes Pb, 3,920 tonnes Zn. The cash cost per AuEq Oz was between $250-$290 and the AISC per AuEq Oz between $250-$290.
  • Magna Gold Corp. reported Q3 2021 production results. At San Francisco, in Sonora, 1.72 M tonnes were mined @ 0.46 gpt Au, and 4.52 M tonnes of waste moved (2.62 strip ratio), 1.76 M tonnes were processed @ 0.45 gpt Au, with 25,663 Oz Au placed in the pads to produce 19,102 Oz Au, 7,115 Oz Ag. The guidance for the year remains at 55-65 K Oz Au.
  • Aura Minerals Inc. announced preliminary production results for the third quarter of 2021, including figures from its Mexican operations. At Aranzazu, in Zacatecas, Aura produced 6,404 Oz Au, 106.1 K Oz Ag, 8.15 M Lb Cu, or 26,745 Oz AuEq.
  • Avino Silver & Gold Mines Ltd. released its production report for the third quarter 2021. The Avino mine in Durango successfully recommenced operations at a 1,000 to 1,500 tpd rate (with a 2,500 tpd plant capacity) with 58.2 K tonnes produced, 61,8 K tonnes processed (with aid of some stock piled material) grading 48 gpt Ag, 0.83 gpt Au, 0.58% Cu, recovering 86% Ag, 75% Au, 85% Cu to produce 77.9 K Oz Ag, 1,183 Oz Au, 685.5 K tonnes Cu.

ON FINANCING

  • Candelaria mining Corp. informed one of its lenders, Accendo Banco S.A. had its authorization to operate as a banking institution revoked by the Mexican National Banking and Securities Commission. “The Company has a US$9.0 million loan facility in place with Accendo and to date has drawn US$1.5 million under the loan facility. The Company anticipates that its ability to draw any further funds from its loan facility with Accendo may be impaired by these developments.” (Pinos, Zacatecas).
  • Xali Gold Corp. announced that Sun River Gold has arranged a financing of US$6.5 M to build an put in operation the tailings reprocessing operation at El Oro, Estado de México. “Sun River has the option to acquire 100% of the Tailings Project from Minera CCM by making staged payments totalling US$500,000 (paid), bring the tailings into commercial production by October 31, 2021 (extended to March 31, 2022 due to COVID), and grant to the Company a 5% NPI, Life of Mine royalty (the “Candente Royalty”) as well as the Municipality’s 8% NPI on production from the properties” (El dorado, Nayarit).

ON RESOURCES AND DEVELOPMENT

  • GR Silver Mining Ltd. filed a technical report on the Plomosas project, in Sinaloa. The report envisages 3.4 M Oz Ag, 53 K Oz Au, 73 M Lb Zn, 48 M Lb Pb (10.3 M Oz AgEq) in indicated resources and 8.6 M Oz Ag, 85 K Oz Au, 149 M Lb Zn, 116 M Lb Pb (21.0 M Oz AgEq) in inferred resources. The report includes information from over 100,000 meters of drilling in 476 historic and 80 new drill holes. A 14,000 meters drilling program with seven rigs is in progress.
  • Orla Mining Ltd. provided a construction update for the Camino Rojo Oxide project in Zacatecas. To date Camino Rojo is 89% complete with the ramp up of mining operations according to plan, and the crushing and conveying system, reclaim tunnel, overland conveyor and grasshopper conveyors completed. The Merrill-Crowe plant and refinery are 98% complete. In the year 757.1 K tonnes have been mined at a grade of 0.86 gpt Au, of which 511.2 K tonnes have been crushed and 220.2 K tonnes stacked.
  • Prime Mining Corp. informed on further drilling results from its Los Reyes project in Sinaloa. Highlighted true width (TW) intercepts comprise 11.8 m @ 6.12 gpt Au, 62 gpt Ag, (including 5.5 m @ 12.02 gpt Au, 61 gpt Ag); 13.1 m @ 3.36 gpt Au, 83 gpt Ag; 13.2 m @ 2.18 gpt Au, 31 gpt Ag; 8.4 m @ 2.85 gpt Au, 31 gpt Ag; 1.4 m @ 3.89 gpt Au, 13 gpt Ag in the Zapote South step out holes, and 3.8 m @ 14.51 gpt Au, 82 gpt Ag; 2.2 m @ 3.96 gpt Au, 9 gpt Ag; 2.1 m @ 5.55 gpt Au, 164 gpt Ag; 2.90 m @ 2.07 gpt Au, 248 gpt Ag; 3.9 m @ 1.90 gpt Au, 78 gpt Ag; 0.9 m @ 3.86 gpt Au, 448 gpt Ag; 4.0 m @ 1.55 gpt Au, 230 gpt Ag in the Tahonitas step out drilling. The boiling level at Zapote, with its corresponding higher grades, has been identified 50 m below previous reports, expanding the exploration targets.
  • Fabled Silver Gold Corp. released further assay results from its Santa Maria property in Chihuahua. The underground drilling was successful in intersecting a geochemically anomalous intrusive rock with a 54.6 m interval grading 0.02 gpt Au, 9 gpt Ag (including three intervals 1.5, 1.5 and 1.2 m in width grading 20, 21 and 23 gpt Ag respectively) and another hole returning 4.5 m @ 13 gpt Ag.
  • GoGold Resources Inc. reported results of 10 new holes from El Favor east zone, extending the mineralized strike by over 450 meters at its Los Ricos North project in Jalisco. Some of the core-length intervals intercepted comprise 27.0 m @ 0.44 gpt Au, 64 gpt Ag; 3.0 m @ 0.51 gpt Au, 86 gpt Ag; 22.3 m @ 0.31 gpt Au, 118 gpt Ag (including 1.0 m @ 3.96 gpt Au, 944 gpt Ag); 7.7 m @ 0.46 gpt Au, 147 gpt Ag; 24.2 m @ 0.45 gpt Au, 105 gpt Ag (including 2.0 m @ 4.16 gpt Au, 794 gpt Ag); 6.1 m @ 1.32 gpt Au, 328 gpt Ag; 2.1 m @ 0.63 gpt Au, 179 gpt Ag; 11.4 m @ 0.26 gpt Au, 136 gpt Ag (including 6.0 m @ 0.38 gpt Au, 179 gpt Ag); 20.1 m @ 0.22 gpt Au, 68 gpt Ag (including 1.0 m @ 2.59 gpt Au, 563 gpt Ag); 18.3 m @ 0.30 gpt Au, 98 gpt Ag (including 5.6 m @ 0.90 gpt Au, 255 gpt Ag). El Favor East mineralization is now known for 900 m, of which 600 m have been drilled.
  • Golden Tag Resources Ltd. announced the addition of 4,500 meters of diamond drilling to its exploration program for 2021 at its San Diego project in Durango. That meterage is in addition to the 4,716 meters already sunk and reported in 2021.   The program discovered epithermal mineralization near the surface, the following are some selected core-length intervals: 273.65 m @ 0.10 gpt Au, 43 gpt Ag, 0.2% Pb, 0.3% Zn (76 gpt AgEq); 50.17 m @ 0.05 gpt Au, 31 gpt Ag, 0.9% Pb, 0.7% Zn; 99.53 m @ 0.09 gpt Au, 27 gpt Ag, 0.7% Pb, 0.6% Zn; 25.55 m @ 0.08 gpt Au, 37 gpt Ag, 0.3% Pb, 0.6% Zn; 86.64 m @ 0.03 gpt Au, 39 gpt Ag, 0.9% Pb, 0.6% Zn; 169.83 m @ 0.04 gpt Au, 32 gpt Ag, 0.6% Pb, 0.8% Zn; 116.45 m @ 0.03 gpt Au, 42 gpt Ag, 0.6% Pb, 0.7% Zn; 134.37 m @ 0.13 gpt Au, 20 gpt Ag, 0.6% Pb, 0.7% Zn; 191.57 m @ 0.04 gpt Au, 35 gpt Ag, 0.8% Pb, 0.8% Zn.
  • Capitan Mining Inc. reported results form five reverse circulation (RC) drill holes at El Capitan, in Durango. Highlighted core length intervals comprise 6.1 m @ 0.15 gpt Au; 13.7 m @ 0.32 gpt Au; 44.2 m @ 0.13 gpt Au, 3 gpt Ag; 6.1 m @ 0.12 gpt Au, 5 gpt Ag; 10.7 m @ 0.12 gpt Au, 27.4 m @ 0.23 gpt Au; 62.5 m @ 0.38 gpt Au, 4 gpt Ag; 35.1 m @ 0.14 gpt Au; 21.3 m @ 0.19 gpt Au; 18.3 m @ 0.15 gpt Au; 6.1 m @ 0.29 gpt Au; 13.7 m @ 0.39 gpt Au, 4 gpt Ag; 85.3 m @ 0.16 gpt Au; 19.8 m @ 0.15 gpt Au, 4 gpt Ag.
  • Zacatecas Silver Corp. provided an update on the drilling program at Panuco, within its Zacatecas property in Zacatecas. Four drill holes were completed for a total of 1,088m at Panuco, while two more were completed at Las Cruces vein system and one more is ongoing. Results are pending.

ON DEALS AND CORPORATE ISSUES

  • Argonaut Gold Inc. has acquired key mineral concessions from Fresnillo PLC for a cash consideration of US$5.75 M. The acquired package comprises a 4,791-ha concession and four key small concessions totalling 27 ha, which will allow Argonaut to expand the pit, increase mineral reserves and extend mine life.

ON SOCIAL RESPONSIBILITY

  • Minera Media Luna informed on educational programs presented at communities in Guerrero.
  • Peñoles presented its company-wide water saving strategy on all its activities.
  • Newmont Peñasquito updated on activities with positive results in near-by communities.
  • Panamerican Silver informed on community health programs near its La Colorada mine in Zacatecas.

On the image below: Galena bearing milky quartz vein on a project in the Sonoran Desert. Picture by Jorge Cirett.

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

Phyllic alteration and Cu mineralization

By Miguel A Heredia

During the 40th week of the year (October 04th to October 10th, 2021), at least 26 press releases were announced by companies working in Mexico and 3 news published by the media, with nine reporting resources and developments, six communicating production and financial results, four informing on exploration results, four announcing financial topics, three disclosing deals and corporate issues, two commenting on Mexican issues and one discussing social issues.  ON MEXICO ISSUES, Members of the Mining Cluster of Chihuahua met with federal deputies of the Partido Acción Nacional (PAN) to let them know of the importance of mining not only in the state but in the entire country.  President AMLO announced a proposal that would put end the current system of lithium concessions and leave exploration and production in the hands of the State. ON EXPLORATION, In Baja, One World Lithium provided an update of its current drilling program at its Salar del Diablo project. In Sonora, Benjamin Hill provided an update of details on the recently released NI 43-101 report on its Benjamin Hill project.  In Chihuahua, Kootenay reported results from the last six holes collared at its Columba project. In Jalisco, Almadex announced Q4, 2021 plans for its San Pedro project. ON MINING, Endeavour Silver reported Q3, 2021 production results from their Mexican mine operations. Gatos Silver announced Q3, 2021 production results from its 70% owned Cerro Los Gatos mine in Chihuahua. GoGold presented quarterly and year ending September 2021 production results from its Parral Tailings project in Chihuahua. Great Panther announced Q3, 2021 production results from their Topia and Guanajuato Mine Complex mines in Durango and Guanajuato states respectively. McEwen reported Q3, 2021 production results from its El Gallo property in Sinaloa. Torex Gold announced Q3, 2021 production results from its El Limon-Guajes Mine Complex in Guerrero. ON FINANCING, Aztec Minerals announced the arrangement of a non-brokered private placement for gross proceeds of CAD $1.05M (Cervantes project, Sonora). Heliostar announced the commencement of a non-brokered private placement for gross proceeds of up to $2M that later on increased it to a maximum of $4M (Cumaro, Oso Negro and la Lola project in Sonora). Tarachi Gold announced a non-brokered private placement for gross proceeds of up to $500K (Magistral Mill and Tailings project, Durango). ON RESOURCES AND DEVELOPMENT, Almaden announced that it has resumed drilling activities at its Ixtaca project in Puebla. Excellon released results from its underground drilling program conducted at its the Platosa mine in Durango. Fabled reported results from its underground drilling program at its Santa Maria project in Chihuahua.  Golden Tag received approval from the Secretariat of Natural Resources and Environment (SEMARNAT) to build additional 41 drill pads at its San Diego property in Durango. GR Silver completed a 3D resistivity, IP and ground magnetic survey at its Plomosas project in Sinaloa. Impact Silver released results from its underground drilling program at Zacualpan mining district, State of Mexico. Minera Alamos provided an update on the ongoing pit optimization drilling program at its Santana property in Sonora. Silver Dollar received drilling permit for its la Joya project in Durango. Tarachi Gold reported results from the tailings drilling program at its Magistral Mill and Tailings project in Durango. ON DEALS AND CORPORATE ISSUES, Santacruz Mining informed that it is suspending operations at the Rosario Project in San Luis Potosi, and placing it on care and maintenance. Riverside reported on mining claims consolidation and expansion of its the La Union polymetallic project in Sonora. Sailfish entered into a binding letter of intent with 1287398 B.C. Ltd., to create a silver focused exploration and development company (Gavilanes property, Durango). ON SOCIAL RESPONSIBILITY, Fresnillo plc and its subsidiary Minera Penmont delivered an ambulance to representatives of the Red Cross in Caborca, Sonora.

ON MEXICO ISSUE

  • Members of the Mining Cluster of Chihuahua met with federal deputies of the Partido Acción Nacional (PAN) to let them know of the importance of mining not only in the state but in the entire country. Deductions of the mining exploration expenses as well as the electricity reform were some of the issues addressed to the deputies. According to the mining sector, if the electricity reform is approved, it will affect the competitiveness of mining. The Mining Cluster, in communion with government authorities, seeks to generate the development of local supply, as well as attracting greater mining investment in the state.
  • President AMLO announced a proposal that would put end the current system of lithium concessions and leave exploration and production in the hands of the State. However, the owner of the USD $420M project Bacanora Lithium stated that the Mexican government’s plans to bring lithium resources under state control will not affect progress in Sonora, since the new reforms will not affect lithium licenses already granted to private companies, as long as exploration work has already started and all licensing requirements have been met.

ON EXPLORATION

  • One World Lithium Inc., provided an update of its current drilling program at its Salar del Diablo project in Baja. The company announced that hole DDH-4 reached a depth of 381m on October 2, 2021 with an expected total depth of 600m. If the results of DDH-4 warrant it, other boreholes will be drilled in the area.
  • Benjamin Hill Mining Corp., provided an update of details on the recently released NI 43-101 report on its Benjamin Hill project in Sonora. “Detailed mapping at 1:1,000 scale has indicated the presence of a large magmatic-hydrothermal system, including mineralized structures, stockworks, sheeted veins, alteration halos, all of which are hosted in granitoids, an eroded skarn system, a volcaniclastic sequence, and volcanic rocks, as well local orogenic quartz veins. This large hydrothermal system could be co-genetic with a bimodal dike swarm mapped on the property and related to a buried fertile plutonic system, suggesting that geological structures and mineralization seen at surface are indicative of a Cu-Au porphyry system at depth”. Recommended activities to be conducted at the property over the next 2-3 months are completing the mapping and sampling on the areas of Caracahui, la Salada, Caracahui Norte and the Sonora Copper; mapping and channel sampling of the Cascabel and Guadalupe adits; dating studies of the plutonic rocks, prospection of the new areas generated by geochemistry (La Falsa, San Felix, and La Berrenda); and channel sampling on the Sonora Copper adit.
  • Almadex Minerals Ltd announced Q4, 2021 plans for its San Pedro project in Jalisco. The company reported that the property is fully permitted and is currently mobilizing a team and rig to site to conduct a drill testing prior to year-end.
  • Kootenay Silver Inc., reported results from the last six holes collared at its Columba project in Chihuahua. The company announced the best drill intercept to date in hole CDH-21-103 with 333 g/t Ag over 44m, including 805 g/t Ag over 17m, including 1,201 g/t Ag over 11m, including 2,035 g/t Ag over 6m, and a high of 9,840 g/t Ag over 0.92m.

ON MINING

  • Endeavour Silver Corp., reported Q3, 2021 production results from their Mexican mine operations. The next table shows the production for the third quarter 2021 by mine:
  • Gatos Silver Inc., announced Q3, 2021 production results from its 70% owned Cerro Los Gatos mine in Chihuahua. The company mined 242,899 tonnes and milled 234,054 tonnes of 256 g/t Ag, 0.3 g/t Au, 2.35% Pb, and 4.1% Zn with metallurgical recoveries of 89%, 63%, 91%, and 74% respectively, to produce 1.7M Oz Ag, 1.3K Oz Au, 10.8M Lb Pb, and 13.5M Lb Zn.
  • GoGold Resources Inc., presented quarterly and year ending September 2021 production results from its Parral Tailings project in Chihuahua. GoGold produced 221.2K Oz Ag, 3,437 Oz Au and 309.1K Lb Cu (526,044 Oz AgEq) in the quarter period for a total of 1.14 M Oz Ag, 13.45K Oz Au, and 1.05M Lb Cu (2.27M Oz AgEq) in the full year ending in September 2021.
  • Great Panther Mining Limited announced Q3, 2021 production results from their Topia and Guanajuato Mine Complex mines in Durango and Guanajuato states respectively. At Topia, Durango, the company processed 14, 433 tonnes of 373 g/t Ag, and 0.64 g/t Au with metallurgical recoveries of 93.7% and 72.2% respectively, to produce 162.2K Oz Ag, 215 Oz Au, 600.3K Lb Pb, and 777.3K Lb Zn (242K Oz AgEq or 2,847 Oz AuEq). At Guanajuato Mine Complex, Guanajuato, Great Panther processed 41,343 tonnes of 102 g/t Ag, and 1.64 g/t Au with metallurgical recoveries of 87.1% and 86.4% respectively, to produce 118K Oz Ag and 1,883 Oz Au (278K Oz AgEq or 3,271 Oz AuEq). “The Company has not yet been granted a permit from the Comisión Nacional del Agua (CONAGUA) to expand the TSF at the Guanajuato Mill Complex, which only has sufficient capacity to continue milling operations until December 2021. While the Company continues to proactively engage CONAGUA to expedite the permitting process, the operating assumption is that a permit will not be forthcoming and numerous longer-term solutions are currently being assessed, including processing ore at third-party facilities”.
  • McEwen Mining Inc., reported Q3, 2021 production results from its El Gallo property in Sinaloa. In Q3, El Gallo produced 560 Gold Equivalents Ounces (GEOs) from residual leaching of the heap leach pad.
  • Torex Gold Resources Inc., announced Q3, 2021 production results from its El Limon-Guajes Mine Complex in Guerrero. The company reported a gold production of 111,220 Oz. The company sold this production at an average realized gold price of USD $1,785 per Oz.

ON FINANCING

  • Aztec Minerals Corp., announced the arrangement of a non-brokered private placement for gross proceeds of CAD $1.05M. Part of the net proceeds will be used to conduct exploration work at its Cervantes porphyry Au-Cu project in Sonora.
  • Heliostar Metals Limited announced the commencement of a non-brokered private placement for gross proceeds of up to $2M that later on was increased to a maximum of $4M. Part of the gross proceeds will be used to conduct exploration work at the Cumaro, Oso Negro and la Lola project in Sonora.
  • Tarachi Gold Corp., announced a non-brokered private placement for gross proceeds of up to $500K. Proceeds of the private placement will be used for general working capital. (Magistral Mill and Tailings project, Durango).

ON RESOURCES AND DEVELOPMENT

  • Almaden Minerals Ltd., announced that it has resumed drilling activities at its Ixtaca project in Puebla. The company also informed that all fieldwork has been conducted in compliance with the Mexican Institute for Social Security (IMSS) since the Company’s Covid-19 protocols detected several COVID-19 cases amongst members of the Company’s local staff. All these individuals were immediately quarantined and supported by the company and one was hospitalized, who unfortunately passed away despite all best efforts. The company has established a COVID Committee that meets weekly to assess the COVID- 19 situation, ensure commitment to company protocols, and discuss opportunities for improvement in the protocols.
  • Excellon Resources Inc., released results from its underground drilling program conducted at its the Platosa mine in Durango. Highlights include hole EX21UG90 with 1,570 g/t Ag, 10.4% Pb, 29.6% Zn, and 0.1 g/t Au (2,860 g/t AgEq) over 7.5m, including 2,424 g/t Ag, 14% Pb, and 35% Zn (3,987 g/t AgEq) over 3.4m, plus 479 g/t Ag, 4.6% Pb, and 2% Zn (667 g/t AgEq) over 2.5m, including 1,758 g/t Ag, 16.5% Pb, and 7.5% Zn (2,441 g/t AgEq) over 0.5m; and hole EX21UG687 with 1,214 g/t Ag, 8.3% Pb, and 16.9% Zn (2,009 g/t AgEq) over 3.1m, including 2,530 g/t Ag, 16.7% Pb, and 19.3% Zn (3,623 g/t AgEq) over 1.2m. “Drilling from underground continues to define and expand known mineralization ahead of production at the 623 and NE-1S mantos. Drilling at Platosa will continue to target areas ahead of production and test the extent of mineralization around mine workings”. 
  • Fabled Silver Gold Corp., reported results from its 1,200m underground drilling program at its Santa Maria project in Chihuahua. Hole SMUG21-16 intersected 0.21 g/t Au,  120 g/t Ag, 0.1% Pb, 0.4% Zn, and 0.01% Cu (131 g/t AgEq) over 5.1m, including 0.6 g/t Au, 387 g/t Ag, 0.35% Pb, 0.6% Zn, and 0.01% Cu (418 g/t AgEq) over 1.3m. Hole SMUG21-17 drilled from the same setup but with different dip angle intersected 1.07 g/t Au, 106 g/t Ag, 0.05% Pb, and 0.2% Zn (161 g/t AgEq) over 3.95m, including 6.46 g/t Au, 490 g/t Ag, 0.3% Pb, 0.45% Zn, and 0.01% Cu (822 g/t AgEq) over 0.60m.
  • Golden Tag Resources Ltd., received approval from the Secretariat of Natural Resources and Environment (SEMARNAT) to build additional 41 drill pads at its San Diego property in Durango, increasing the total number of permissible pads to 55. The new permit is valid for a period of 4 years.
  • GR Silver Mining Ltd., completed a 3D resistivity, IP and ground magnetic survey at its Plomosas project in Sinaloa. This geophysical survey links San Marcial resource with the recent GAP area discovery and the San Juan resource. Elevated chargeability has been identified in the vicinities of San Marcial resource area; the magnetic survey shows several oriented magnetic features; and the resistivity data shows that important parts of the Plomosas project are separated into structural blocks controlled by NW-trending faults and mineralized structures. Early-stage field assessment of Ag-Au targets is underway and several of these are currently in the drill planning stage.
  • Impact Silver Corp., released results from its underground drilling program in the Lipton area of its Guadalupe Mine at Zacualpan mining district, State of Mexico. Significant drill intercepts were encountered in hole MPZ-UG-001-21 with 327 g/t Ag, 0.3% Pb, and 0.6% Zn over a true width (TW) of 2.5m; hole MPZ-UG-002-21 with 691 g/t Ag, 0.3%, and 0.7% over a TW of 1.29m; hole MPZ-UG-006-21 with 443 g/t Ag, 0.2% Pb, and 0.3% Zn over a TW of 1.90m; and hole MPZ-UG-014-21 with 472 g/t Ag, 0.2% Pb, and 0.5% Zn over a TW of 1.69m. The drill holes covered the vein systems over a strike length of 430m and a vertical distance of 200m.
  • Minera Alamos Inc., provided an update on the ongoing pit optimization drilling program at its Santana property in Sonora. Drilling highlights include hole S20-147D with 0.69 g/t Au over 248.8m from surface and ending in mineralization; hole S20-149D with 0.77 g/t Au over 152.7m from surface, including 1.39 g/t Au over 56.2m; and hole S21-160D with 0.51 g/t Au over 242.7m from 41.9 down hole.   
  • Silver Dollar Resources Inc., received permit for the next phase of drilling at its la Joya project in Durango. The company is cashed-up and eager to restart exploration drilling for the first time in over seven years.
  • Tarachi Gold Corp., reported results from the tailings drilling program at its Magistral Mill and Tailings project in Durango. A total of 37 vertical auger holes were completed to depths ranging from 1.3 to 14.5m with an average depth of 6.6m. The 171 gold tailings samples ranged in grade from 0.89 to 4.12g/t with an average of 2.04g/t Au.

ON DEALS AND CORPORATE ISSUES

  • Santacruz Silver Mining Ltd., informed that it is suspending operations at the Rosario Project in San Luis Potosi, and placing it on care and maintenance. This decision was made following an extensive review by management of the Rosario project operations and strategic options available including the potential sale of the operation.
  • Riverside Resources Inc., reported on mining claims consolidation and expansion of its the La Union polymetallic project. The acquisition of the La Famosa and Plomito small internal claims provided Riverside access to high-grade small scale mine properties increases its property total area to over 2,604 hectares. Riverside optioned these properties over 4 years term staged cash payments without any NSR.  At La Famosa, Riverside can earn 100% of interest in the property by making a total cash payment of USD $175K in staged cash payments starting with USD $10K in the first year anniversary, $USD 15K in the second year, USD $25 in the third year, USD $50K in the fourth year, and a final cash payment of USD $75,000. At Plomito, Riverside can earn 100% interest in the property by making a total cash payment of USD $165K in staged cash payments, starting with USD $10K in the first year anniversary, $USD 15K in the second year, USD $25 in the third year, USD $40K in the fourth year, and a final cash payment of USD $75,000.
  • Sailfish Royalty Corp., entered into a binding letter of intent with 1287398 B.C. Ltd., to create a focused exploration and development company (Pubco or Sailfish Silver as the proposed transaction). The plan is to transfer the Gavilanes Silver Project to Pubco in exchange for shares of Pubco.  

ON SOCIAL RESPONSIBILITY

  • Fresnillo plc and its subsidiary Minera Penmont delivered an ambulance to representatives of the Red Cross in Caborca, Sonora. With this action, the Mexican company strengthens the vehicle fleet of the health institution that is responsible for protecting the health of the people of Caborca.

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

On the picture above, a phyllic alteration with Cu mineralization in a prospect in Sonora, Mexico.  Photo by Miguel A Heredia.

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

Calcite veinlets in an oxidized siltstone-sandstone sequence

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

By Miguel A Heredia

During the 35th week of the year (September 6th to September 12th, 2021), at least 23 press releases were announced by companies working in Mexico and 6 news published by the media, with fourteen reporting resources and developments of their properties, eight informing on exploration results, five commenting on Mexican issues, one  communicating production and financial results, and one discussing social issues.  ON MEXICO ISSUES, the National Autonomous University of Mexico (UNAM) and the Mexican Mining Chamber (CAMIMEX) signed a collaboration agreement to promote research, scientific-technical advice and the training of human resources related to the mining sector. Mining companies in Mexico increased their consumption of clean energy from 14 to 31% from 2019 to 2020. Silver production in Mexico was led by the companies Fresnillo plc, Newmont and Grupo México in 2020, reported CAMIMEX. The Mexican Geological Service (SGM) has detected 14 points to explore for lithium carbonate in Sonora. The head of CAMIMEX stated that Mexican mining companies face “major delays” with environmental and water permits. ON EXPLORATION, In Sonora, Benjamin Hill released assay results at its Benjamin Hill property, Colibri completed an IP survey and applied for a drill permit on its Evelyn project, and along with its partner Silver Spruce informed on exploration results at their Mezquite, Jackie and Diamante properties. In Chihuahua, Reyna Silver presented results from the first seven holes collared at its Batopilas property. In Nayarit, Sierra Madre announced results from its confirmation drilling program at its Tepic project. In Zacatecas, Defiance Silver released drill results from its ongoing drilling program at its San Acacio project.  ON MINING, Minera Alamos provided an update on the ongoing ramp up of mining operations at its Santana project in Sonora.  ON FINANCING, no relevant news.  ON RESOURCES AND DEVELOPMENT, Almaden provided an update on its current drilling program at the Ixtaca project in Puebla. Coeur provided an update of its ongoing infill and expansion drilling program at its Palmarejo property in Chihuahua.  Discovery Silver reported positive results from metallurgical test work at its Cordero property in Chihuahua. Endeavour completed a Feasibility Study (FS) on its Terronera property in Jalisco. Fabled announced additional results from its 1,200m drilling program conducted at its Santa Maria property in Chihuahua. GoGold released results from five holes drilled at its Los Ricos project in Jalisco.  Gold Resource confirmed down-dip extension of the Switchback Vein System at its Arista mine, and commenced process of ramping up activities at its Don David mine in Oaxaca. Golden Tag released results from its drilling program conducted at its San Diego property in Durango. GR Silver presented results from the exploration program conducted on the GAP area located between the San Juan and San Marcial areas in Sinaloa. Prime Mining released results from its phase 1 drilling program conducted at its Los Reyes property in Sinaloa.  SilverCrest announced infill and expansion drill results at its Las Chispas property in Sonora. ON DEALS AND CORPORATE ISSUES, no relevant news. ON SOCIAL RESPONSIBILITY, Fresnillo plc, through Minera Juanicipio promotes the economy of the communities of Carrillo and Nuevo Mexico in Fresnillo, Zacatecas.

ON MEXICO ISSUES

  • The National Autonomous University of Mexico (UNAM) and the Mexican Mining Chamber (CAMIMEX) signed a collaboration agreement to promote research, scientific-technical advice and the training of human resources related to the mining sector. The agreement will allow addressing specific problems in this strategic sector for the country, such as the management of polluting waste and the new technologies applicable in mining processes to reduce the environmental impact and the impact on local communities.
  • Mining companies in Mexico increased their consumption of clean energy from 14 to 31% from 2019 to 2020, according to the Mining Chamber of Mexico (CAMIMEX). The results correspond to the member companies of CAMIMEX, which account for about 90% of the value of the country´s mining-metallurgical production.
  • Silver production in Mexico was led by the companies Fresnillo plc, Newmont and Grupo México in 2020, reported the Mexican Mining Chamber (CAMIMEX). Silver mining production was 180.2 M Oz in 2020, 4% less than the corresponding year. Of that total, Fresnillo plc, the world’s largest producer company, recorded a production of 27.7%. This was followed by Newmont (15.4%) and Grupo México (8.8%). By federal entity, Zacatecas retains the first position, with a participation of 38.9%.The largest silver mines in the country are located in this state: “Peñasquito”, “Saucito” and “Fresnillo”.
  • The Mexican Geological Service (SGM) has detected 14 points to explore for lithium carbonate in Sonora. Lithium is used to create batteries, technological tools, mobile devices and electric cars that is revolutionizing the automotive industry.
  • The head of CAMIMEX, Fernando Alanis, stated that Mexican mining companies face “major delays” with environmental and water permits. “According to CAMIMEX, 18 specific mining project permits are pending before SEMARNAT, corresponding to projects that represent investment of nearly USD $2,800M. The metals sector seeks to boost operations in the one of the country’s biggest industries.

ON EXPLORATION

  • Benjamin Hill Mining Corp., released assay results from its Benjamin Hill property in Sonora with values as high as up to 20.0 g/t of Au at the eastern part of the area and values that ascend to 6.1, 4.4 and 3.6 g/t of Au to the south and silver values that exceed 200 g/t. These results confirm a N-S mineralized trend that runs at least by 3m long and 3 km wide. The company considers it is a new target area worthy to be drill tested.
  • Colibri Resource Corporation completed an IP survey and applied for a drill permit on its Evelyn project. At Evelyn property, the company completed an IP survey and reported that at 100m vertical depth, two broad areas of higher chargeability were identified underlying the northeast and central-east regions of the property; at 100m vertical depth, a sharp north-northwest showing more resistive domain to the northeast and a less resistive domain to the southwest was identified and has been interpreted as a moderately westerly dipping fault zone; and at 200m vertical depth, a strong chargeability was identified underlying the chargeability anomaly at 100m depth being interpreted as due to a stronger chargeability response below the zone of oxidation. Colibri also informed that it filed a drill permit with the Mexican Environmental Authority (SEMARNAT) to drill up to 56 holes at Evelyn property. This drilling program is based on data compilation and interpretation including the IP survey.
  • Colibri Resource Corporation, along with its partner Silver Spruce Resources Inc., informed on exploration results at their Mezquite, Jacky and Diamante properties. At El Mezquite property, the companies released drill results for the first 10 holes of its phase 1 drilling program and reported that 9 out of 10 returned assays or assay intercepts greater that 0.1 g/t Au with a highlight of 0.83 g/t Au over 3.05 metres in hole MEZ-21-005. These 10 holes are part of the 20 holes completed on July from eight pads for a total of 2,485m. Results of the remaining 10 holes are pending. The company also received a comprehensive interpretation of regional ASTER and LANDSAT 8 Hyperspectral and Image Analysis at their Jackie, El Diamante, and Mezquite properties. Alteration zonesassociated with NW trending lineaments (partially targeted by phase 1 drilling) were identified at Mezquite property. At Jackie, there are andesites displaying intense oxidation, silicification and argillization in areas free of vegetation. At Diamante property, there are many areas of alteration that require field verification as part of the first drill target definition.
  • Reyna Silver Corp., presented results from the first seven holes totaling 1,095m collared at its Batopilas property in Chihuahua. This is part of a 10,000m stage 1 drilling program. Significant mineralization was encountered in hole BA21-30 with 3.03 g/t Au and 703 g/t Ag over 3.2m, including 10,565 g/t Ag over 0.2m, and 8.74 g/t Au over 0.85m; and hole BA21-34 with 4.88 g/t Au and 11 g/t Ag  over 1.5m, including 28.7 g/t Au and 59 g/t Ag over 0.25m. “Reyna Silver’s exploration program in the district is focused on tracing the known and projected native- silver bearing veins into the less explored and exploited parts of the district using surface mapping, trenching and satellite imagery”.
  • Sierra Madre Gold & Silver Ltd., announced results from its recently completed confirmation drilling program at its Tepic project. This program comprised 21 RC holes totalling 2,136m. Drilling highlights include hole TRC012 with 2.23 g/t Au and 263 g/t Ag (419 g/t AgEq) over 1.2m and hole TRC013 with 1.47 g/t Au and 119 g/t Ag (222 g/t AgEq) over 22.9m. Sierra Madre is advancing the property to a NI 43-101resource estimation.
  • Defiance Silver Corp., released drill results from its ongoing drilling program out of the existing resource area at the San Acacio project. Drilling highlights include holes DDSA-21-48 with 0.11 g/t Au, 144 g/t Ag, 0.4% Pb, and 0.5% Zn (179 g/t AgEq) over 20.97m, including 0.23 g/t Au, 597 g/t Ag, 0.5% Pb, and 1.1% Zn (665 g/t AgEq) over 1.63m, including 0.4 g/t Au, 1,460 g/t Ag, 0.8% Pb, and 1.9% Zn (1,574 g/t AgEq) over 0.6m, plus 0.36 g/t Au, 21 g/t Ag, 0.7% Pb and 1.3% Zn (109 g/t AgEq) over 5.16m; hole DDSA-21-47 with 0.5 g/t Au, 274 g/t Ag, 0.3% Pb, and 1.2% Zn (362 g/t AgEq) over 3.5m, including 0.47 g/t Au, 474 g/t Ag, 0.4% Pb, and 1.3% Zn (564 g/t AgEq) over 1.80, and further down this hole encountered historical working with poor recovery core that returned 0.4 g/t Au, 183 g/t Ag, 0.8% Pb, and 1.7% Zn (289 g/t AgEq) over 12m; and hole DDSA-21-46 with 0.25 g/t Au, 9 g/t Ag, 1.4% Pb, and 4.3% Zn (212 g/t AgEq) over 3.15m.  These results confirm up-dip and down-dip continuity of the main Veta Grande vein-structure outside of the current resource estimate.

ON MINING

  • Minera Alamos Inc. provided an updated on the ongoing ramp up of mining operations at its Santana project in Sonora. The company continued to expand blasting and mining activities aimed at removing the upper portion of the Nicho Norte mineralized “pipe”. The company has mined out over 147K tonnes from June to August, the same that were placed on the leach pad. The average grade of the blasthole assays in the mineralized zone was 0.86 g/t Au.

ON FINANCING

  • No relevant news.

ON RESOURCES AND DEVELOPMENT

  • Almaden Minerals Ltd., provided an update on its current drilling program at the Ixtaca project in Puebla. The company has identified an increase in the number of COVID 19 cases in the  municipality of Ixtacamaxtitlan and has decided to pause drilling for two weeks out. To date, Almaden has drilled only one hole at the Southeast Alteration Zone to a depth of 78m. Core samples have been already dispatched to lab for assay.
  • Coeur Mining Inc., provided an update of its ongoing infill and expansion drilling program at its Palmarejo property in Chihuahua. Drilling highlights of the infill program conducted at the Independence deposit include hole HGDH_050 with 3.8 g/t Au and 271 g/t Ag over 3.5m; hole HGDH_069 with 4.8 g/t Au and 531 g/t Ag over 16.8m; hole HGDH_072 with 23.7 g/t Au and 819 g/t Ag over 3.9m, and VIDH_161 with 9.3 g/t Au and 538 g/t Ag over 3.4m. At the Patria deposit, highlights include hole LPDH with 6.2 g/ Au and 130 g/t Ag over 13m. Expansion drilling is also being conducted at Elmira and Johnson areas and highlights include hole EL21-0850-192-X30 with 36.3 g/t Au over 4.5m, hole EL21-0850-192-X23 with 16.5 g/t Au over 6m; and hole EL21-0850-156-X11 with 27.8 g/t Au over 3.2m, 220 g/t Au over 0.2m; and 53.7 g/ Au over 0.4m. “Coeur plans to transition its focus on various resource expansion targets in the remainder of 2021, while also continuing the infill program at the Independencia North, Hidalgo and La Patria zones”.
  • Discovery Silver Corp., reported positive results from metallurgical test work at its Cordero property in Chihuahua. Sulphide flotation test work returned silver recoveries of 80-89%, lead recoveries of 83-91%, and zinc recoveries of 81-90% from locked cycle tests, while oxide & transition cyanidation test work returned silver recoveries of 54-80%, and gold recoveries of 61-75% at coarse crush / grind sizes from coarse bottle roll testing.
  • Endeavour Silver Corp., completed a Feasibility Study (FS) on its Terronera property in Jalisco. Highlights of the FS at Base Case (using USD $24 silver and USD $1,800 gold ) are an after-tax NPV (5%) of USD $174M, after-tax IRR of 21.3%, a payback period of 3.6 years, a pre-tax cumulative undiscounted free cash flow of USD $476M, and after-tax cumulative undiscounted free cash flow of USD $311M. These figures are for an underground mine operation that will process 7.4M tonnes of ore at 1,700 tons per day over the 12-year mine life.
  • Fabled Silver Gold Corp., announced additional results from its 1,200m drilling program conducted at its Santa Maria property in Chihuahua. Hole SMUG-21-14 intersected 0.23 g/t Au, 81 g/t Ag, 0.1% Pb, 0.1% Zn, and 0.01% Cu (93 g/t AgEq) over 7.2m, including 0.5 g/t Au, 143 g/t Ag, 0.5% Pb, 0.3% Zn, and 0.01% Cu (143 g/t AgEq) over 4m, plus 0.33 g/t Au, 177 g/t Ag, 0.1% Pb, 0.4% Zn, and 0.01% Cu (177 g/t AgEq) over 6.75m, including 0.53 g/t Au, 286 g/t Ag, 0.2% Pb, 0.6% Zn, and 0.01% Cu (286 g/t AgEq) over 3.85m, including 1.08 g/t Au, 634 g/t Ag, 0.3% Pb, 0.9% Zn, and 0.02% Cu (690 g/t AgEq) over 1.35m. “Holes SMUG21- 16, 17 and 18 have been completed and submitted for assay. Hole SMUG21- 18 is the last hole drilled for the underground drill campaign”.
  • GoGold Resources Inc., released results from five holes drilled at its Los Ricos project in Jalisco. The most significant drill intersection was encountered in hole LRGF-21-060 collared at El Favor deposit with 0.36 g/t Au and 238 g/t Ag (3.54 g/t AuEq or 265 g/t AgEq) over 82.9m, including 0.62 g/t Au and 408 g/t Ag (6.05 g/t AuEq or 454 g/t AgEq) over 44.4m, including 1.09 g/t Au and 700 g/t Ag (10.43 g/t AuEq or 782 g/t AgEq) over 13.8 m, including 1.56 g/t Au and 1,009 g/t Ag (15.02 g/t AuEq or 1,126 g/t AgEq) over 8.1m, including 5.66 g/t Au and 2,163 g/t Ag (34.49 g/t AuEq or 2,587 g/t AgEq) over 1.4m.
  • Gold Resource Corporation confirmed down-dip extension of the Switchback Vein System at its Arista mine in Oaxaca, with interceptions of precious and base metal mineralization approximately 80m below existing workings. “The results of drilling completed during the second and third quarters of 2021 have confirmed the potential for adding precious metal bearing mineralization that is amenable to mining in the short term. Geologists continue to focus on exploring new areas and identifying additional mineralization along strike as well as up- and down-dip of the current mine workings.” At its Don David mine, the company commenced the process of ramping up activities after bringing employees back to the mine site, and provided an updated 2021 production guidance. Gold Resource expects to produce 21K-23K Oz Au and 1.1-1.3M Oz Ag, at cash and AISC of USD $250- 290 and USD $800-900 per Oz AuEq.
  • Golden Tag Resources Ltd., released results from its drilling program conducted at its San Diego property in Durango. Hole 21-57 intersected directly over top of the NW contact of the Fernandez Zone 0.1 g/t Au, 43 g/t Ag, 0.2% Pb,  0.3% Zn, and 0.02% Cu ( 76 g/t AgEq) over 273.65m, including 0.55 g/t Au, 628 g/t Ag, 1.1% Pb, 3.61 g/t Zn, and 0.12% Cu (892 g/t AgEq) over 10m. Other significant intersections included in this long interval are 0.11 g/t Au, 362 g/t Ag, 1.2% Pb, 2.8% Zn, and 0.26% Cu (570 g/t AgEq) over 1.07m, 0.1 g/t Au, 221 g/t Ag, 3.8% Pb, 2.5% Zn, and 0.12% Cu (492 g/t AgEq) over 1.23m, and 0.08 g/t Au, 43 g/t Ag, 0.7% Pb, 0.8% Zn, and 0.05% Cu (115 g/t AgEq) over 17m, plus a deeper intersection (1849 target area) of 0.13 g/t Au, 20 g/t Ag, 0.6% Pb, 0.7% Zn, and 0.05% Cu (92 g/t AgEq) over 134.37m, including 0.22 g/t Au, 25 g/t Ag, 0.6% Pb, 0.9% Zn, and 0.07% Cu (117 g/t AgEq) over 66.04m. “This new discovery sits directly over top of the NW contact of the Fernandez Zone and contains a broad interval of silver mineralization that will be tested for continuity and the potential for additional open pit style of mineralization. The second discovery was made within the 1849 Target area, which now becomes the 1849 Zone, located only 120 m NW of the Fernandez Zone.”
  • GR Silver Mining Ltd., presented results from the exploration program conducted on the GAP area located between the San Juan and San Marcial areas in Sinaloa. Channel sampling highlights include 10.72 g/t Au and 251 g/t Ag over, 0.3m; 0.81 g/t Au and 1,450 g/t Ag over 0.35m; and 2.77 g/t Au and 363 g/t Ag over 0.3m. Rock chip sampling highlights include 0.54 g/t Au, 3.5% Pb, and 11.8% Zn; 1.6 g/t Au and 440 g/t Ag. The company controls 7km of structural trend between San Marcial and San Juan areas, which hosts the new GAP Area discovery.
  • Prime Mining Corp., released results from its phase 1 drilling program conducted at its Los Reyes property in Sinaloa. Drilling highlights include hole 21GE-20 with 35.37 g/t Au and 1.626 g/t Ag over a true width (TW) of 6m, including 62.6 g/t Au and 2,574 g/t Ag over a TW of 3m; hole 21GE-18 with 15.58 g/t Au and 270 g/t Ag over a TW of 9.4m; and hole 21GE-19 with 2.66 g/t Au and 118 g/t Ag over a TW of 30.7m. These drill results expands the open-pit potential at Guadalupe East Vein System. 
  • Silver Tiger Metals Inc., presented results from its ongoing drilling program at its El Tigre property in Sonora. The most significant drill intersection was encountered in hole 21-236  on Soy Vein with 0.34 g/t Au, 324 g/t Ag, 0.47% Cu, 0.7% Pb, and 0.4% Zn (428 g/t AgEq) including 0.27 g/t Au, 894 g/t Ag, 0.9% Cu, 0.8% Pb, and 0.5% Zn (1,039 g/t AgEq) over 0.8m.
  • SilverCrest Metals Inc., announced infill and expansion drilling results in the Babicanora Area at its Las Chispas property in Sonora. Drilling highlights include hole BV21-307 with 17.13 g/t Au and 1,830 g/t Ag (3,319 g/t AgEq) over a true width (TW) of 2.96m, including 42.3 g/t Au and 4,490 g/t Ag (8,166 g/t AgEq) over a TW of 1.21m; hole BV21-308 with 15.83 g/t Au and 1,440 g/t Ag (2,815 g/t AgEq) over a TW of 3.55m, including 93.6 g/t Au and 7,750 g/t Ag (15,884 g/t AgEq) over a TW of 3.55m, including 93.6 g/t Au and 7,750 g/t Ag (7,249 g/t AgEq) over a TW of 0.42m; and hole BV21-340 with 34.4 g/t Au and 4,260 g/t Ag (7,249 g/t AgEq) over a TW of 0.41m. This drilling is targeting conversion of an estimated 15.4M Oz AgEq grading 9.97 g/t Au and 708 g/t Ag, or 1,574 g/t AgEq.

ON DEALS AND CORPORATE ISSUES

  • No relevant news.

ON SOCIAL RESPONSIBILITY

  • Fresnillo plc, through Minera Juanicipio promotes the economy of the communities of Carrillo and Mexico Nuevo in Fresnillo, Zacatecas. The company carried out the programs “Family Gardens” and “Backyard Birds” in the communities of Carrillo and Mexico Nuevo, in order to stimulate the local economy and benefit 50 families from Fresnillo, Zacatecas. This activity has the support of local authorities.

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, calcite veinlets hosted in an oxidized siltstone-sandstone sequence in a prospect in Chihuahua, Mexico.  Photo by Miguel A Heredia.

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

By Jorge Cirett

During the 34th week of the year (August 30th to September 5th, 2021), at least 21 press releases were announced by companies working in Mexico. To note, four companies posted exploration advances on their properties, four posted on mining or quarterly reports, seven on financing or shares and four more on project development or resource definition. ON MEXICO ISSUES, Camimex informed on direct and indirect employment generated by the mining industry. In 2020, Mexico was the top silver producer in the world. Sixty percent of foreign held mining projects are idle. Mexico is the ninth top producer of gold in the world, with 41.3 tonnes produced in 2020. ON EXPLORATION, in Chihuahua, Monarca Minerals completed the first two RC holes at San Jose. In Sinaloa, Vizsla Silver released results from 19 holes on the Naploleon area of the Panuco project. Durango, Canasil Resources released results from two diamond holes at Nora. In Guanajuato, Guanajuato Silver informed drilling continues at Pinguico.  ON MINING, Altaley Mining and Santacruz Silver reported second quarter 2021 results. Torex Gold released its multi-year production outlook for el Limon Guajes complex, aiming to produce 1.59 to 1.75 M Oz Au in 2021-2024. Guanajuato Silver commenced infill drilling at El Cubo. ON FINANCING, Prime Mining reported the exercise of warrants for C$9.5 M; Silver Spruce announced a financing round for up to $1 M; Mithril plans to raise up to A$3.3 M. Silver Wolf shares are now eligible for electronic clearing in the USA. SilverCrest completed the second scheduled drawdown of US$30 M. Candelaria Mining announced a non-brokered private placement for $7.8 M, on which Agnico Eagle subscribed for a $6 M consideration. ON RESOURCES AND DEVELOPMENT, Cheasapeake Gold filed a NI43-101 report on the Metates heap leach project. Zacatecas Silver is to commence drilling at Panuco. Sonora Gold reported surface assay results from Cerro Caliche. GR Silver Mining commenced 1,500 m of underground resource expansion drilling at San Marcial. ON DEALS AND CORPORATE ISSUES, No relevant news. ON SOCIAL RESPONSIBILITY, Torex Gold, Autlán, Industrias Peñoles, Fortuna Silver and Almaden Minerals informed on social responsibility actions by the companies on communities and society.

ON MEXICO ISSUES

  • Camimex (Cámara Minera de México) informed that during the first half of 2021 the mining industry generated 40,895 new direct jobs and more than 2 million new indirect jobs, boasting salaries 36% higher than the national average.  Also, during 2020 the industry invested US$3,532 M (US$3.5 billion, in American notation) and is posed to invest further US$5,034 M (US$5 billion in American notation) in 2021 and a total of more than US$24,000 M (US$24 billion in American notation) in the next six years.  
  • Mexico was the top producer of silver in the world in 2020, with 5,541 tonnes, China and Peru stand in the second and third place producing 3,443 tonnes and 2,991 tonnes respectively.
  • There are 1,190 mining projects funded by foreign capital in Mexico, but 6 of each 10 are idle, regardless of the increase in metal prices. Of the 1,190 projects, 754 are idle, 307 in exploration, 78 in production, 43 in development and 8 have closed. One of the issues affecting the mining industry in Mexico is the fiscal load, with taxes on profit of 52.7%, same tax burden that in other countries is lower: USA 30.2%, Canada 34.6%, Chile 35.7%, Peru 39.9%.
  • Mexico is the ninth producer of gold in the world, tied with Uzbekistan. Gold production during the first half of 2021 was 41,325 kg, which is 30% higher than a year before. This is the first yearly increase in gold production since the historic high of 2015, when 60,325 kg were produced. Sonora produced 29.8% of the total amount, Zacatecas 18.8% and Chihuahua 16.1%. Five companies produced almost 60% of the total, Fresnillo PLC, Newmont (Peñasquito), Torex Gold, Agnico Eagle and Alamos Gold.

ON EXPLORATION

  • Monarca Minerals Inc. informed on the completion of the first two drill holes at the San Jose project in Chihuahua. Both RC holes intersected endoskarn and exoskarn mineralization with pyrite and fine grained sulfides (probably galena and sphalerite) and local chalcopyrite. Both holes targeted geophysical anomalies.
  • Canasil Resources Inc. released results from the second and third holes of the 2021 drill program at Nora, in Durango. Highlighted true-width intervals comprise 7.18 m @ 2.05 gpt Au, 344 gpt Ag, 0.4% Pb, 0.8% Zn (including 1.87 m @ 4.42 gpt Au, 541 gpt Ag, 0.9% Pb, 1.9% Zn and 0.94 m @ 2.92 gpt Au, 766 gpt Ag, 1.0% Pb, 2.1% Zn); 0.94 m @ 5.91 gpt Au, 316 gpt Ag, 0.8% Pb, 1.7% Zn; 0.94 m @ 7.0 gpt Au, 279 gpt Ag; 0.94 m @ 2.13 gpt, 203 gpt Ag; 5.33 m @ 1.14 gpt Au, 157 gpt Ag (including 1.85 m @ 2.45 gpt Au, 284 gpt Ag); 1.36 m @ 1.30 gpt Au, 302 gpt Ag; 3.29 m @ 6.44 gpt Au, 884 gpt Ag, 0.2% Zn; 0.90 m @ 1.65 gpt Au, 431 gpt Ag, 0.1% Zn; 1.53 m @ 20.59 gpt Au, 1,290 gpt Ag, 0.1% Pb, 0.3% Zn; 2.71 m @ 2.76 gpt Au, 250 gpt Ag, 0.1% Zn. “Gold-silver mineralization is hosted within two structurally-controlled epithermal veins, Candy and Nora… The fault structure hosting the Candy vein has been traced for a distance of over 3 km…. The second vein, Nora, is found 600 metres northeast of the Candy vein and can be traced for 230 metres with widths of over 9.0 metres”.
  • Vizsla Silver Corp. released the results from 19 new holes targeting the Napoleon vein resource area at its Panuco project in Sinaloa. Highlighted true-width results comprise 1.46 m @ 10.74 gpt Au, 188 gpt Ag, 1.3% Pb, 3.5% Zn; 3.01 m @ 3.62 gpt Au, 40 gpt Ag, 0.8% Pb, 4.0% Zn; 3.40 m @ 3.10 gpt Au, 110 gpt Ag, 1.2% Pb, 1.1% Zn; 1.40 m @ 6.49 gpt Au, 114 gpt Ag, 0.8% Pb, 8.0% Zn; 5.93 m @ 11.35 gpt Au, 185 gpt Ag, 0.5% Pb, 2.2% Zn; 6.33 m @ 1.79 gpt Au, 52 gpt Ag, 0.2% Pb, 1.1% Zn. To date 105 holes on the Napoleon resource area define an average vein width of 3.5 m @ 3.11 gpt Au, 161 gpt Ag, 0.45% Pb, 1.3% Zn. A maiden resource estimate is planned for Q1 2022.
  • Guanajuato Silver Company Ltd. informed that drilling continues at El Pinguico project in Guanajuato.

ON MINING

  • Altaley Mining Corp. released its financial and operating results for Q2 2021. At Campo Morado, Guerrero, the company processed 164 K tonnes at 1,803 tonnes per day, grading 4.5% Zn, 0.34% Cu, 129 gpt Ag, 1.16 gpt Au, recovering 74% Zn, 31% Pb, at cash cost $0.48per Lb Zn and an AISC of $0.77 per Lb Zn.
  • Santacruz Silver Mining Ltd. reported its financial and operating results for the second quarter 2021. The company operating the Zimapan and Rosario mines in Hidalgo and San Lusi Potosi respectively, processed 172.3 K tonnes to produce 799 K Oz Ag at cash cost $55.48 per tonne, cash cost $19.87 per Oz Ag, an AISC of $23.74 per Oz Ag. Revenue increased to $13.7 M and gross profits to $3.8 M.
  • Torex Gold Resources Inc. informed on the multi-year outlook for production at its El Limon Guajes mining complex in Guerrero. Torex plans to produce at El Limon Guajes 430-470 K Oz Au in 2021, 430-470 K Oz Au in 2021, 400-450 K Oz Au in 2023 and 330-350 K Oz Au in 2024 (1.59-1.74 M Oz Au, total). “The current production outlook assumes production from the ELG open pits through mid-2024, and stable production from the ELG Underground through to at least the end of 2024 and likely longer based on exploration results”.
  • Guanajuato Silver Company Ltd. announced that infill and expansion drilling has commenced at its El Cubo mine in Guanajuato.

ON FINANCING

  • Prime Mining Corp.  reports the exercising of warrants for gross proceeds of C$9.52 M, resulting in a cash position of C$31.9 M. “From the 15,000 metre (“m”) Phase 1 diamond drill program at Los Reyes completed in June 2021, 29 unreported holes are expected to be released in the coming weeks” (Los Reyes, Sinaloa).
  • Silver Wolf Exploration Ltd. announced its shares are now eligible for electronic clearing and settlement in the United States (Ana Maria, Durango).
  • SilverCrest Metals Inc. announced the completion of the second scheduled drawdown of US$30 M on its previously announced US$120 Million project financing facility with an affiliate of RK Mine Finance (Las Chispas, Sonora).
  • Silver Spruce Resources Inc. announced a private placement to gather up to $1 M (El Mezquite, Sonora).
  • Candelaria Mining Corp. announced a non-brokered private placement geared to raise up to $7.8 M in gross proceeds (Caballo Blanco, Veracruz).
  • Agnico Eagle Mines Ltd. is subscribing 13.333 M units of Candelaria Mining Corp., for a total consideration of $6 M. On closing of the private placement, Agnico is to own 15.94% of the issued and outstanding shares of Candelaria (Pinos Altos, Chihuahua).
  • Mithril Resources Ltd. Is planning to raise up to A$3.3 M through a share placement (Coplaquin, Durango).

ON RESOURCES AND DEVELOPMENT

  • Chesapeake Gold Corp. filed a NI-43-101 technical report on the Metates sulfide heap leach project in Durango. The company has shipped selected drill core samples for metallurgical testing in Vancouver. “The Company will prioritize the intrusive and intrusive breccia portions of the Metates orebody with results of the testwork to be released on an ongoing basis. First results are expected in earlyQ1 2022”.
  • Zacatecas Silver Corp. informed drilling to commence at the Panuco deposit and San Gill breccia zone on its Zacatecas Silver project. The Phase One program is to include 10,000 m of drilling. “A total of three veins will be drilled — Panuco NW, Panuco Central and Tres Cruces — which remain open at depth and along strike. These are high-priority drill targets”.
  • Sonoro Gold Corp. reported assay results from surface sampling at its Cerro Caliche project in Sonora. “Surface rock samples were collected from several well-defined vein and gold mineralized structures by channel sampling perpendicular across measured veins and wall rocks with sample lengths ranging from 0.4 to 2.0 meters. Assay results from 17 samples returned grades between 2.5 and 14.3 grams of gold per tonne”. These assays are from extensions to significant structural corridors at the Buena Suerte and El Colorado zones.
  • GR Silver Mining Ltd. commenced the initial 1,500 m underground resource expansion diamond drill program at San Marcial, in Sinaloa. The program will test down-dip and along strike extensions to the existing NI-43-101 resource and new targets defined by a recent geophysical program.

ON DEALS AND CORPORATE ISSUES

  • No Relevant News.

ON SOCIAL RESPONSIBILITY

  • Minera Media Luna (Torex Gold) informed on medical supplies to some communities in Guerrero.
  • Autlán received for second consecutive year the Ethics and Values award granted by CONCAMIN (Confederación de Cámaras Industriales).
  • Peñoles received the Ethics and Values, and the Health and Wellbeing awards granted by CONCAMIN (Confederación de Cámaras Industriales).
  • Minera Cuzcatlán (Fortuna Silver) informed on aid to local communities near its San José mine in Oaxaca.
  • Fresnillo and Industrias Peñoles informed on aid to communities and organizations thorough the country.
  • Minera Gorrión (Alamaden Minerals informed on the way it is letting the communities know about its current drilling program in Puebla.

On the image below:  Low sulfidation epithermal quartz veining from a project in northern Sonora. Picture by Jorge Cirett.

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

Cockade and quartz blade textures

By Miguel A Heredia

During the 34th week of the year (August 23th to August 29th, 2021), at least 14 press releases were announced by companies working in Mexico and 2 news published by the media, with six reporting resources and developments of their properties, five informing on exploration results, two discussing social issues, one communicating production and financial results, one announcing financial topics, and one disclosing deal and corporate issues.  ON MEXICO ISSUES, no relevant news.  ON EXPLORATION, In Sonora, Benjamin Hill confirmed the presence of gold and copper mineralization at depth at its Sonora Gold project, and Tocvan provided an update of its phase II drilling program at El Pilar project. In Chihuahua, Kootenay informed about the discovery of a potential new high-grade zone at its Columba project. In Sinaloa, Vizsla announced that it has resumed drilling at its flagship Panuco project and released new exploration drill results from the step-out drilling at the Napoleon Corridor.  ON MINING, Mexus Gold announced that the activated carbon system at its Santa Elena mine in Sonora is working as planned to produce gold.  ON FINANCING, Alamos Gold declared quarterly dividends of USD $0.025 per common share and announced it repurchased 600K shares at a cost of USD $4.5M (Mulatos mine, Sonora).  ON RESOURCES AND DEVELOPMENT, Discovery presented Q2, 2021 financial results and provided an update of key activities for its flagship Cordero project in Chihuahua. Fabled reported drill results from its newly upgraded 14,200m drilling program at its Santa Maria project in Chihuahua and informed that one hole intersected multiple mineralized sheeted vein structure over a true width of 150m. GoGold released results from six holes drilled at El Orito Zone at its Los Ricos North project in Jalisco and reported the completion of an IP survey to map out the sulphide rich zone along strike and dip. Golden Tag finished a geological interpretation program in partnership with Orix Geoscience at its San Diego project located in Durango.  GR Silver completed an initial resource estimate at its Plomosas project in Sinaloa. ON DEALS AND CORPORATE ISSUES, Bacanora Lithium provided an update on the litigation with the Estate of Colin Orr-Ewing in regard to its challenge to the validity of the lithium royalty over the Sonora Lithium Project. ON SOCIAL RESPONSIBILITY, Grupo Mexico Foundation supports reforestation of protected natural areas in the country. La Cantera Desarrollos Mineros provided financial support for the construction of a medical appointment center in the community of Ojo de Agua in Guanajuato.

ON MEXICO ISSUES

  • No relevant news.

ON EXPLORATION

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

ON MINING

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

ON FINANCING

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

ON RESOURCES AND DEVELOPMENT

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

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

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

ON DEALS AND CORPORATE ISSUES

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

ON SOCIAL RESPONSIBILITY

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

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

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

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

By Miguel A Heredia

During the 32nd week of the year (August 9th to August 15th, 2021), at least 22 press releases were announced by companies working in Mexico and 2 news published by the media, with eight reporting resources and developments of their properties, seven communicating production and financial results, four informing on exploration results, two announcing financial topics,, one disclosing deal and corporate issues, one commenting on Mexican issues and one discussing social issues.  ON MEXICO ISSUES, According to World Bank Data, Mexico continued to dominate world silver production last year, despite a 9.5% drop on the previous year.  ON EXPLORATION, In Durango, Canasil released results from the first drill hole of its 2020 follow up drill program collared at its Nora project, and Mithril presented drilling results, extending the El Refugio high-grade “clavo” zone 80m further east. In Zacatecas, Zacatecas Silver announced it has received drilling permits for their El Panuco and San Gil projects. In the State of Mexico, Xali has identified new drill targets at its El Oro-Tlalpujahua mining district.  ON MINING, Gatos Silver reported Q2, 2021 production and financial results from its Los Gatos mine in Chihuahua. Argonaut announced Q2, 2021 production and financial results from their Mexican operations. Endeavour presented Q2, 2021 consolidated financial results from their Mexican operations. GoGold reported Q2, 2021 production and financial results from its Parral Tailings project in Chihuahua.  Guanajuato Silver announced that it began stockpiling mineralized material from its El Cubo mine in Guanajuato. Pan American reported Q2, 2021 production and financial results from their La Colorada and Dolores mines in Zacatecas and Chihuahua respectively. Sierra Metals announced Q2, 2021 production and financial results from their Bolivar and Cusi mines in Chihuahua.  ON FINANCING, Magna provided an update to its previously announced non-brokered private placement of CAD $10M convertible debentures (San Francisco mine, Sonora). Southern Silver provided exercise instructions for warrants dated September 11, 2020 (Cerro Las Minitas, Durango).  ON RESOURCES AND DEVELOPMENT, Barksdale commenced a 5,000m Phase 1 drilling program at its San Javier project in Sonora. Azucar Minerals provided an update for its El Cobre project in Veracruz. Gatos Silver reported drilling results from its definitional drilling at its Cerro Los Gatos, Chihuahua. Gold Resource confirmed the up-dip extension of the Switchback Vein system and has also intersected additional mineralization outside of the current mining area (Don David Gold mine, Oaxaca). Osisko provided an update of the activities carried out in 2021 at its San Antonio project, Sonora.  Pan American reported its estimated mineral reserves and resources as of June 30, 2021 at their La Colorada, Dolores, and La Bolsa deposits in Zacatecas, Chihuahua, and Sonora respectively. SilverCrest provided an update on its Las Chispas mine construction in Sonora.  Southern Silver released assay results from its ongoing drilling program at its Cerro Las Minitas project, Durango. ON DEALS AND CORPORATE ISSUES, Excellon provided an update on litigation in respect of the La Antigua mineral concession (Evolution property, Zacatecas). ON SOCIAL RESPONSIBILITY, Alamos Gold has allocated MXP $400M in environmental investment at its la Yaqui Grande mining project in Sonora.  

ON MEXICO ISSUES

  • According to World Bank Data, Mexico continued to dominate world silver production last year, despite a 9.5% drop on the previous year. Mexico produced 5,541 tonnes of silver, followed by China with 3,443 tonnes, and by Peru with 2,991 tonnes. Global production of silver totaled 25,516 tonnes last year, a 3.7% decrease compared to 2019, largely due to COVID-19 restrictions which required several major silver producers to temporarily halt production. “Mexico´s Fresnillo plc, the world´s largest silver producing company, said mine extraction of the metal has shown a steady decline since 2015”.

ON EXPLORATION

  • Canasil Resources Inc., released results from the first drill hole of its 2020 follow up drill program collared at its Nora project. Highlights of the hole NRC-21-09 drilled on the Candy Vein include 20.59 g/t Au and 1,290 g/t Ag (2,783 g/t AgEq) over a true width (TW) of 1.53m, including 43.7 g/t Au and 1,290 g/t Ag (4,458 g7t AgEq) over a TW of 0.63m; plus 6.44 g/t Au and 884 g/t Ag (1,355 g/t AgEq) over a TW of 3.29m on the Candy hanging wall structure, including 8.45 g/t Au and 1,021 g/t Ag (1,634 g/t AgEq) over a TW of 1.84m, including 15.6g/t Au and 561 g/t Ag (1,692 g/t AgEq) over a TW of 0.50m; plus 2.76 g/t Au and 250 g/t Ag (450 g/t AgEq) over a TW of 2.71m on the Candy foot wall structure, including 6.19 g/t Au and 319 g/t Ag (768 g/t AgEq) over a TW of 0.90m. The high gold and silver grades and relatively low base metal values suggest the upper levels of the system which is open to depth.
  • Mithril Resources Ltd., presented drilling results, extending the El Refugio high-grade “clavo” zone 80m further east. High-grade was intercepted in hole CDH-079 with 7.60 g/t Au and 332 g/t Ag over 12.4m, including 18.1 g/t Au and 810 g/t Ag over 4.19m; and hole CDH-80 with 5.08 g/t Au and 197 g/t Ag over 6.11m, including 9.47 g/t Au and 399 g/t Ag over 2.3m.
  • Zacatecas Silver Corp., announced it has received drilling permits from SEMARNAT for the execution of 10,000m of drilling at their El Panuco and San Gil projects in Zacatecas. The company also completed environmental studies at San Manuel and El Cristo projects and has submitted drill permit applications to SEMARNAT which expect to be received in approximately four weeks.
  • Xali Gold Corp., has identified in a 3D Leapfrog model, new drill targets at its El Oro-Tlalpujahua mining district in the State of Mexico. These targets are designed to test potential extensions to the mineralized veins where they are intersected by cross-cutting mineralized structures. These structures have been incorporated into the 3D model in order to optimize drill angles and azimuths.

ON MINING

  • Gatos Silver Inc., reported Q2, 2021 production and financial results from the Los Gatos mine in Chihuahua. The company mined 240,047 tonnes and milled 230,656 tonnes of 322 g/t Ag, 0.35 g/t Au, 2.5% Pb, and 4.4% Zn with metallurgical recoveries of 89%, 63%, 90%, and 75% respectively to produce 2.1M Oz Ag, 1.5K Oz Au, 11.2M Lb Pb, and 14.5M Lb Zn. Co-product cash cost and Co-product AISC were $11.5 and $17.65 per Oz AgEq respectively, while by-product cash cost and by-product AISC were $2.87 and $12.63 per Oz AgEq respectively. Gatos Silver reported operating expenses for $5.1M, a net income of $13.5M, and a cash and cash equivalents at June 30, 2021 for $29.6M.
  • Argonaut Gold Inc., announced Q2, 2021 production and financial results from their Mexican operations. At El Castillo mine in Durango, the company mined 2,496,000 tonnes and processed 2,468,000 tonnes on leach pads with a grade of 0.25 g/t Au to produce 12.7K Oz Au and 17.4K Oz Ag or 12,929 Gold Equivalent Ounces (GEOs) at a cash cost of USD $1,109 per Oz Au sold. At San Agustin mine in Durango, Argonaut mined 2,718,000 tonnes and processed 2,962,000 tonnes on leach pads with a grade of 0.32 g/t Au to produce 18.1K Oz Au and 138.5K Oz Ag or 19,734 GEOs, at a cash cost of USD $801 per Oz Au sold. Consolidated results for El Castillo Complex (El Castillo + San Agustin mines) were 5,214,000 tonnes mined and 5,450,000 tonnes processed with a grade of 0.29 g/t Au to produce 30.8K Oz Au and 155.9K Oz Ag or 31.4K GEOs at a cash cost of USD $924 per Oz Au sold. At La Colorada mine in Sonora, it mined 1,150,000 tonnes and processed 1,247,000 tonnes on leach pads with a grade of 0.76 g/t Au to produce 16.7K Oz Au and 48.1K Oz Ag or 17,288 GEOs, at a cash cost of USD $608 per Oz Au sold. Argonaut also reported the discovery of high-grade gold veins below the El Creston open pit, including 98.9 g/t Au and 30 g/t Ag over 12.2m, and 44.6 g/t Au and 275 g/t Ag over 21.3m.
  • Endeavour Silver Corp., presented Q2, 2021 consolidated financial results from their Mexican operations. The company produced 1.07M Oz Ag and 11.1K Oz Au (2MOz AgEq) at cash and AISC of USD $13.03 and USD $25.39 per Oz Ag payable respectively. It reported net revenue of USD $47.7M from the sale of 1.12M Oz Ag and 9.8K Oz Au; cash flow of USD $8.7M before working capital changes; earning of USD $6.7M; adjusted earning of USD $0.8M; cash position of USD $125.2M; and working capital of USD $146.8M. Endeavour also announced the suspension of operations at its El Compas mine in Zacatecas. 
  • GoGold Resources Inc., reported Q2, 2021 production and financial results from its Parral Tailings project in Chihuahua. The company produced 315.6K Oz Ag, 3,170 Oz Au, and 268.8K Lb Cu (563.4K Oz AgEq) at cash and AISC of USD $13.31 and USD $16.98 per Oz AgEq. GoGold reported revenues for USD $15M on the sale of 563.4K Oz AgEq; free cash of USD $7.5M; cash flow from operations before working capital of USD $6M, and USD $2.7M after working capital; adjusted net income of USD $3.9M; and cash of USD 73.5M. The company plans to use the free cash flow generated from its Parral Tailings project to fund the current exploration program conducted at its Los Ricos project in Jalisco.
  • Guanajuato Silver Company Ltd., announced that mining, mucking, and stockpiling of mineralized material has begun at its El Cubo mine in Guanajuato in anticipation of the recommencement of operations at the El Cubo mill.
  • Pan American Silver Corp., reported Q2, 2021 production and financial results from their La Colorada and Dolores mines in Zacatecas and Chihuahua respectively. At La Colorada, Zacatecas, the company produced 1.01M Oz Ag and 700 Oz Au at cash and AISC of USD $4.52 and USD $12.42 per Oz Ag respectively. At Dolores, Chihuahua, Pan American produced 612K Oz Ag and 43.3K Oz Au at cash and AISC of USD $602 and USD $716 per Oz Au respectively.
  • Sierra Metals Inc., announced Q2, 2021 production and financial results from their Bolivar and Cusi mines in Chihuahua. At Bolivar mine, Chihuahua, the company processed 385,331 tonnes of 0.86% Cu, 19 g/t Ag, and 0.21 g/t Au to produce 5.8M Lb Cu, 202K Oz Ag, and 1,627 Oz Au (7.75M Lb CuEq) at cash and AISC of USD $1.17 and USD $3.27 per Lb CuEq respectively. At Cusi mine, Chihuahua, Sierra Metals processed 73,294 tonnes of 139 g/t Ag, 0.16 g/t Au and 0.1% Pb to produce 269K Oz Ag, 142 Oz Au and 129K Lb Pb (283K Oz AgEq) at cash and AISC of USD $21.67 and USD $35.73 per Oz AgEq.

ON FINANCING

  • Magna Gold Corp., provided an update to its previously announced non-brokered private placement of CAD $10M convertible debentures. The principal amount of the debentures is convertible, at the election of Delbrook Capital Advisors Inc., into common shares of the company at a conversion price of CAD $1.25 per common share.  The Company will pay Delbrook a 1.25% arrangement fee on closing of the private placement (San Francisco mine, Sonora).
  • Southern Silver Exploration Corp., provided exercise instructions for warrants dated September 11, 2020 in connection with a CAD $10M brokered private placement of subscription receipts and a CAD $4M non-brokered private placement of subscription receipts which both closed on August 14, 2020 (Cerro Las Minitas, Durango).

ON RESOURCES AND DEVELOPMENT

  • Barksdale Resources Corp., commenced a 5,000m Phase 1 drilling program at its San Javier project in Sonora. Goals of this Phase 1 drilling program is to test the controls of the Cu mineralization at the Cerro Verde deposit in San Javier project, to step out of from known areas of previously drilled mineralization, and provide metallurgical samples for a column test work. Results from this drilling phase will be used to update a 3D model that will form the base for a new resource estimate.
  • Azucar Minerals Ltd., provided an update for its El Cobre project in Veracruz. It has drilled a couple of holes: one at El Pedregal target and a second one at the Raya Tembrillo target within the Villa Rica Zone at its El Cobre property. A hole planned for the large area of alteration and mineralization of the Encinal Zone will be deferred until more detailed geologic work and review is complete. Assays of the two holes already drilled will be released when they are received and processed. It is also reviewing past acquired data to plan additional drilling for future programs.
  • Gatos Silver Inc., reported drilling results from its 27,000m definitional drilling at its Cerro Los Gatos, Chihuahua. Highlights include hole GA404 collared at SE Zone of Esther deposit with 211 g/t Ag, 0.28 g/t Au, 5.5% Pb, and 8.3% Zn over 12.5m, and hole GA392 collared at NW Zone of Esther deposit with 27 g/t Ag, 0.9% Pb, and 4.5% Zn over 30m. “Drilling has identified three separate veins in SE Block #4: an upper vein, a middle vein with more characteristic thickness and grade of the main Cerro Los Gatos system, and a deeper footwall vein which was first identified in this campaign of drilling. The upper vein now has a demonstrated strike length of 400 meters which is open to the southeast and at depth. The middle vein has a demonstrated strike length of 520 meters which remains open to the northwest and at depth. The third vein has a demonstrated strike length of 800 meters and remains open to the southeast and at depth. These drill results extended 800m from the existing resource reserve blocks and remains open to the SE”.
  • Gold Resource Corporation confirmed the up-dip extension of the Switchback Vein system and has also intersected additional mineralization at Sandi Vein system outside of the current mining area with upside potential to develop a new mineralized zone.  Drilling highlight on Switchback Vein include hole # 521013 with 1.51 g/t Au, 95 g/t Ag, 0.21% Cu, 1.2% Pb, and 1.8% Zn over 5.37m, including 2.61 g/t Au, 155 g/t Ag, 0.25% Cu, 2.1% Pb, and 3% Zn over 2.9m; hole # 521014 with 0.82 g/t Au, 640 g/t Ag, 0.24% Cu, 0.2% Pb, and 0.8% Zn over 0.78m, hole # 521015 with 0.01 g/t Au,  2,610 g/t Ag, and 0.31% Cu over 1.55m; and hole # 521018 with 4.45 g/t Au, 4,460 g/t Ag, 0.03% Cu, 1% Pb, and 2.4% Zn over 0.36m. Drilling highlights at Sandy Vein system include hole # 521021 with 1.61 g/t Au, 33 g/t Ag, 0.5% Cu, 2.4% Pb, and 2.1% Zn over 8.67m, including 4.88 g/t Au, 75 g/t Ag, 0.93% Cu, 6.4% Pb, and 4% Zn over 2.77m; and hole # 521022 with 2.32 g/t Au, 19 g/t Ag, 0.2% Cu, 1.4% Pb, and 6.8% Zn over 1.18m. “The Sandy 1 vein is open on dip and along strike to the northwest, whilst southeastern potential, including linkage to the Switchback system, is being evaluated”.
  • Osisko Development Corp., provided an update of the activities carried out in 2021 at its San Antonio project, Sonora. The company completed 9,900m of infill drilling of a planned two phase 45,000m drilling campaign. It also continues preparations to commence processing of the large stockpile on site, and announced that the heap leaching permitting is on schedule and anticipates granting of the permit by the end of the year.
  • Pan American Silver Corp., reported its estimated mineral reserves and resources as of June 30, 2021 at their La Colorada, Dolores, and La Bolsa deposits in Zacatecas, Chihuahua, and Sonora respectively. Mineral resources are exclusive of mineral reserves. At La Colorada mine, Zacatecas, the company reported proven reserves of 3.9M tonnes of 350 g/t Ag and 0.25 g/t Au for a total of 43.5M Oz Ag and 30.6K Oz Au contained and probable reserves of 6.2M tonnes of 289 g/t Ag and 0.19 g/t Au for a total of 57.3M Oz Ag and 38.2K Oz Au contained. It also reported measured resources of 1.3M tonnes of 185 g/t Ag and 0.15 g/t Au for a total of 7.6M Oz Ag and 6K Oz Au contained, indicated resources of 1.9M tonnes of 175 g/t Ag and 0.15 g/t Au, for a total of 10.6M Oz Ag and 9K Oz Au contained, and inferred resources of 8.4M tonnes of 190 g/t Ag and 0.15 g/t Au for a total of 51.1M Oz Ag and 40.9K Oz Au. In addition La Colorada Skarn has inferred resources of 100.4M tonnes of 44 g/t Ag to contain a total of 141M Oz Ag. At Dolores mine, Chihuahua, Pan American reported proven reserves of 20.8M tonnes of 22 g/t Ag and 0.74 g/t Au for a total of 14.9M Oz Ag and 495.3K Oz Au contained and probable reserves of 6.2M tonnes of 28 g/t Ag and 0.78 g/t Au for a total of 5.6M Oz Ag and 155.1K Oz Au contained. The company also reported measured resources of 2.82M tonnes of 16 g/t Ag and 0.3 g/t Au for a total of 1.5M Oz Ag and 27.2K Oz Au, indicated resources of 0.82M tonnes of 22 g/t Ag and 0.62 g/t Au for a total of 0.6M Oz Ag and 16.3K Oz Au contained, and 2.7M tonnes of 46 g/t Ag and 1.25 g/t Au for a total of 4M Oz Ag and 108.5K Oz Au contained. At La Bolsa deposit, Sonora, the company reported measured resources of 10.8M tonnes of 10 g/t Ag and 0.7 g/t Au for a total of 3.5M Oz Ag and 242.8K Oz Au contained, indicated resources of 10.6M Oz tonnes of 8 g/t Ag and 0.54 g/t Au for a total of 2.7M Oz Ag and 154.3K Oz Au contained, and inferred resources of 13.7M tonnes of 8 g/t Ag, and 0.51 g/t Au for a total of 3.3M Oz Ag and 224.6K Oz Au contained.
  • SilverCrest Metals Inc., provided an update on its Las Chispas mine construction in Sonora. The company reported that at the end of HI, 2021 Las Chispas progress was 33% completed; camp facility and earthworks completed; concrete foundation work 74% complete; plant tank, power line, road and bridge commenced; and 4.6Km of underground development completed. SilverCrest reported that as at July 31, 2021, the company remains well funded with cash and cash equivalents of USD $188M and USD $90M available under a USD $120M project financing facility. “Las Chispas could generate after-tax project free cash flow of approximately USD $160M in 2023 and an estimated average of USD $110M per year from 2023 to 2029”.
  • Southern Silver Exploration Corp., released assay results from its ongoing drilling program at its Cerro Las Minitas project, Durango. Drilling highlights from Mina La Bocona Area include hole 21CLM-164 with 102 g/t Ag, 1.8% Pb, and 1.7% Zn (234 g/t AgEq) over a true width (TW) of 16.3m, including 383 g/t Ag, 7.9% Pb, and 10.2% Zn (1,051 g/t AgEq) over a TW of 1.4m; 21CLM-167 with 263 g/t Ag, 0.2 g/t Au, 6% Pb, and 1.2% Zn (513 g/t AgEq) over a TW of 1.7m, including 543 g/t Ag, 0.4 g/t Au, 12.7% Pb, and 1% Zn (1,011 g/t AgEq) over a TW of 0.7m; and hole 21CLM-170 with 7 g/t Ag, 0.4% Cu, and 10.6% Zn (443 g/t AgEq) over a TW of 2.5m, including 14 g/t Ag, 0.4% Cu, and 21% Zn (844 g/t AgEq) over a TW of 0.7m. The current drill program has now completed 56 core holes totaling 22,360 metres since drilling recommenced in September 2020. Assay results from five drill holes are pending and are anticipated over the coming weeks. “Southern Silver has now tested over 850m of strike length along the east side of the Cerro to depths of up to 500m, primarily in the South Skarn and Mina La Bocona target areas. Three bonanza grade mineralized zones have been identified as well as shallow intercepts of high-grade mineralization to the northwest of the Bocona target, results of which will be incorporated into an upcoming mineral resource update on the project”.

ON DEALS AND CORPORATE ISSUES

  • Excellon Resources Inc., provided an update on litigation involving the Company’s subsidiary, San Pedro Resources SA de CV (San Pedro) in respect of the La Antigua mineral concession (Evolution property, Zacatecas). Excellon received an initial electronic notice last July that San Pedro’s appeal to the federal courts of Mexico in respect of the litigation was dismissed, despite the lack of evidence, facts or law to support this outcome. The Company has now received the formal written decision on the appeal which, based on initial legal review, appears to uphold the judgment granting the plaintiff an award of approximately USD $23M and is not subject to further legal appeal in Mexico.  Brendan Cahill, President and CEO of Excellon, stated that “The value ascribed in the judgment is impossible based on evidence, facts or law. Simply put, the maximum value realizable by the plaintiff from the agreement on La Antigua was USD $500K in the best-case scenario, yet the Miguel Auza Mine was shut down in 2008 almost immediately after operations commenced.”

ON SOCIAL RESPONSIBILITY

  • Alamos Gold Inc., has allocated MXP $400M in environmental investment at its la Yaqui Grande mining project in Sonora. The foregoing consists of environmental remediation works that will be carried out as areas of the mine are vacated, a different model from the traditional work that waits until the end of the useful life of a mine to carry out reclamation and closure activities. In La Yaqui Grande, it is contemplated to have constant reclamation of areas, placing the vegetal roof covering in layers and stages, which implied a special design and engineering to make it possible throughout the seven years of operation. The company will also acquire a treatment plant that will allow the water used in the operation to be recirculated, reducing its consumption. The design of “tepetateras or dumps” is different from the traditional ones and there is already a nursery for the reproduction of native plants of the region, which will supply the demand for the development of this environmental project.

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

On the picture above, a volcanic-hosted quartz vein with oxidized pyrite in a low sulphidation epithermal vein system from a prospect in Chihuahua, Mexico.  Photo by Miguel A Heredia.

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

Quartz vein displaying boiling texture

By Miguel A Heredia

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

ON MEXICO ISSUES

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

ON EXPLORATION

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

ON MINING

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

ON FINANCING

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

ON RESOURCES AND DEVELOPMENT

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

ON DEALS AND CORPORATE ISSUES

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

ON SOCIAL RESPONSIBILITY

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

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

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

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

By Jorge Cirett

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

ON MEXICO ISSUES

  • No Relevant News.

ON EXPLORATION

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

ON MINING

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

ON FINANCING

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

ON RESOURCES AND DEVELOPMENT

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

ON DEALS AND CORPORATE ISSUES

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

ON SOCIAL RESPONSIBILITY

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

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

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

By Jorge Cirett

During the 27th week of the year (July 5th to July 11th, 2021), at least 22 press releases were announced by companies working in Mexico. To note, six companies posted exploration advances on their properties, four on quarterly production and one about the end of an illegal blockade 17 months long, one posted on financing, five more on project development or resource definition and one posted an update on a law suite. ON MEXICO ISSUES, the illegal blockade on Americas Gold and Silver Cosalá operations in Sinaloa was terminated. Mexico has fallen 13 places on the Fraser’s Index on Mining Attractiveness, affected by perceptions on security and rule of law. ON EXPLORATION, in Sonora, Benjamin Hill Mining released surface assay results high in Cu and Au; Tocvan Ventures released results from RC drilling at Pilar. In Sinaloa, Brigadier Gold released drilling and underground sampling results from Picachos. In Durango, Canasil started drilling at Nora. In Zacatecas, Zacatecas Silver signed surface access agreements to the San Gill zone at its Zacatecas Silver project. In Oaxaca, Madoro Metals updated on exploration at Yautepec. ON MINING, GoGold Resources, Gatos Silver, Endeavour Silver and Torex Gold presented second quarter 2021 production results. Americas Gold and Silver signed an agreement with several ministries to reopen Its Cosalá operations in Sinaloa.  ON FINANCING, Gold79 Mines commenced trading on the OTCQB Venture Market in USA. Minaurum Gold closed a financing round for C$9.2 M. ON RESOURCES AND DEVELOPMENT, Southern Silver released drilling results from Cerro Las Minitas in Durango. GR Silver Mining, reported drill hole results from Plomosas in Sinaloa. Capitan Mining reported RC holes results from Peñoles, Durango. Guanajuato Silver provided drilling results from Pinguico, Guanajuato. Fabled Silver reported underground drilling results from Santa Maria, Chihuahua. ON DEALS AND CORPORATE ISSUES, Excellon Resources informed on a legal suite regarding the Miguel Auza mine in Zacatecas. ON SOCIAL RESPONSIBILITY, Fresnillo PLC, Minera Autlán and Newmont Peñasquito informed on activities supporting sports, the environment and community equipment in different localities.

ON MEXICO ISSUES

  • Mexico has fallen 13 places in the Fraser’s Index of Mining attractiveness from 2008 to 2020. Investment also saw a 42.8% reduction in the same period, including some effect by the pandemic. Security, labor regulations, political instability, lack of mining concessions and a nationalization streak in the current government were cited as deterrents to investment in the country. Those viewpoints are reflected in less investment, less employment and fewer opportunities to find new orebodies, factors that will lead to  reductions in production and taxes to be paid in the coming years.
  • The illegal blockade on Americas Gold and Silver Cosalá operations is off. After 17 months of illegal blockade, the negotiations aided by the federal government can hardly be called a success. Events like this one add to the deterioration on the global perception of Mexico as a good place for mining investment.
  • The AIMMGM (Asociación de Ingenieros de Minas, Metalurgista y Geólogos de México) stated through its president Sergio Almazán, that investment in the Mexican mining sector has been affect by the lack of certitude.

ON EXPLORATION

  • Benjamin Hill Mining Corp. released assay results from surface sampling at the Caracahui, Caracahui Norte and Sonora Copper areas from its Sonora Gold property in Sonora. Some of the highlighted comprise: 0.1 gpt Au, 12.2% Cu, 80 gpt Ag; 1.7 gpt Au, 10.2% Cu, 15 gpt Ag; 4.4% Cu, 8 gpt Ag; 0.2 gpt Au, 4.3% Cu, 25 gpt Ag; 1.2 gpt Au, 2.4% Cu, 98 gpt Ag; 0.1 gpt Au, 1.9% Cu, 3 gpt Ag; 0.6 gpt Au, 1.5% Cu, 24 gpt Ag; 2.2 gpt Au, 0.9% Cu, 17 gpt Ag; 15.9 gpt Au, 0.4% Cu, 3 gpt Ag; 3.3 gpt Au, 0.1% Cu, 47 gpt Ag; 2.5 gpt Au, 0.1% Cu, 65 gpt Ag; 2.4 gpt Au, 0.5% Cu, 7 gpt Ag; 2.2 gpt Au, 0.9% Cu, 17 gpt Ag; 2.0 gpt Au, 0.3% Cu, 53 gpt Ag. “The recent advancement of exploration on the Sonora Gold concession has identified expansive copper mineralization along broadly continuous structural trends which have not yet been fully explored”.
  • Canasil Resources Inc. announced the start of the 2021 drill program at the Nora project in Durango. The initial focus is to test below, between and on strike extensions from high-grade Au and Ag intercepts from the 2020 program. Highlighted true width intercepts from the previous campaign include 2.40 m @ 4.78 gpt Au, 351 gpt Ag; 1.49 m @ 11.86 gpt Au, 378 gpt Ag and 3.05 m @ 3.71 gpt Au, 489 gpt Ag, with Pb, Zn, Cu credits.
  • Brigadier Gold Ltd. released drilling and underground sampling results from its Picachos project in Sinaloa. Highlighted underground sampling results comprise 0.3 m @ 31.4 gpt Au, 11 gpt Ag, 0.2% Cu, 0.5% Pb, 2% Zn; 3.2 m @ 7.43 gpt Au, 0.1% Pb, 0.2% Zn; 0.9 m @ 4.64 gpt Au, 0.1% Pb, 0.1% Zn; 0.5 m @ 38.88 gpt Au, 22 gpt Ag, 0.4% Cu, 1.7% Pb, 1.5% Zn; 1.0 m @ 12.79 gpt Au, 8 gpt Ag, 0.1% Cu, 0.9% Pb, 0.9% Zn. A surface trench returned 8 m @ 2.14 gpt Au, 0.1% Pb. Highlighted core length intervals comprise 6.5 m @ 0.26 gpt Au, 6 gpt Ag; 60.3 m @ 0.41 gpt Au, 0.2% Zn (including 4.5 m @ 0.56 gpt Au, 0.1% Pb, 0.1% Zn and 7.5 m @ 0.98 gpt Au, 0.1% Zn); 113 m @ 0.19 gpt Au, 0.1% Pb, 0.2% Zn (including 1 m @ 6.89 gpt Au, 0.1% Zn; 4 m @ 1.85 gpt Au; 1 m @ 5.51 gpt Au, 0.1% Zn); 123 m @ 0.27 gpt Au, 0.1% Pb, 0.2% Zn (including 4 m @ 1.08 gpt Au; 4 m @ 1.10 gpt Au, 0.4% Pb, 1.7% Zn; 1 m @ 3.51 gpt Au, 0.1% Pb).
  • Madoro Metals Corp. provided an update on recent exploration results from its Yautepec project in Oaxaca. A previously unknown 7 km long trend of epithermal alteration was found in the southern part of the project by company geologists. Highlighted results comprise 0.10 m @ 12.35 gpt Au, 1,250 gpt Ag in a quartz vein grab sample within a stockwork complex 400 by 200 m in the Tecolote zone; 0.10 m vein @ 0.54 gpt Au, 0.16% Cu, 1.3% Zn on the Southern Dike zone.
  • Zacatecas Silver Corp. completed access agreements with landowners at the San Gill breccia zone and San Gill vein system at its Zacatecas Silver project in Zacatecas. Environmental reports have been sent to SEMARNAT for the drilling of the Panuco and San Gill systems, and a third one is being prepared for El Cristo zone.
  • Tocvan Ventures Corp. released results from six reverse circulation drill holes at its Pilar project in Sonora. The phase II program sunk over 3,500 m in 20 holes, highlighted core length intervals comprise 44.22 m @ 0.41 gpt Au, 4 gpt Ag (including 7.63 m @ 1.66 gpt Au, 7 gpt Ag); 47.27 m @ 0.75 gpt Au, 5 gpt Ag (including 12.20 m @ 1.12 gpt Au and 19.82 m @ 1.06 gpt Au).

ON MINING

  • GoGold Resources Inc. reported production of 315.6 K Oz Ag, 3,170 Oz Au, 120 tonnes Cu during the second quarter of 2021 at its Parral tailings project in Chihuahua.
  • Americas Gold and Silver Corp. signed an agreement with the Mexican Ministries of Economy, Interior and Labour committing to a reopening of its Cosalá operations in Sinaloa, shut by an illegal blockade spanning 17 months. “After the long period of denied access, the agreement contemplates immediate right to possession of the property with a joint inspection coordinated by the Ministry of Labor this Thursday, so that the mine can restart operations in a safe and sustainable manner”.  
  • Gatos Silver Inc. released its production report for the second quarter of 2021, which constitute a record for the company. A total of 240 K tonnes were mined, 230.6 K tonnes were milled at a daily rate of 2,535 tonnes, with an average grade of 322 gpt Ag, 0.35 gpt Au, 2.51% Pb, 4.41% Zn, with recoveries of 89% Ag, 63% Au, 90% Pb, 75% Zn, to produce 2.1 M Oz Ag, 1.5 K Oz Au, 11.2 M lb Pb, 14.5 M Lb Zn in Pb and Zn concentrates.
  • Endeavour Silver Corp. reported production results for the second quarter 2021. During the period 1.07 M Oz Ag, 11,166 Oz Au were produced. The El Cubo mine in Guanajuato was sold to Guanajuato Silver Corp..
  • Torex Gold Resources Inc. released production results for Q2 2021. At its El Limón-Guajes mine in Guerrero, a total of 118,050 Oz Au was produced, with an average plant throughput of 11,980 tpd, average underground ore mined of 1,420 tpd and an average open pit ore mined of 12,430 tpd.

ON FINANCING

  • Gold 79 Mines Ltd. commenced trading on the OTCQB Venture Market in the United States, operated by the OTC Markets Group Inc., under the stock symbol AUSVF (Taviche , Oaxaca).
  • Minaurum Gold Inc. closed a previously announced bought deal public offering, for gross proceeds of C$9.2 M. Due to the demand, the offering was upsized from the original gross proceeds of C$7 M. The offering included an investment from Crescat Capital (Alamos Silver, Sonora).

ON RESOURCES AND DEVELOPMENT

  • Southern Silver Exploration Corp. released drilling results that extend mineralization at the South Skarn and La Bocona areas at its Cerro Las Minitas project in Durango. True width core intervals comprise 1.8 m @ 161 gpt Ag, 0.1 gpt Au, 4.9% Pb, 3.0% Zn (including 0.4 m @ 422 gpt Ag, 0.4 gpt Au, 13.2% Pb, 9.1% Zn); 2.6 m @ 159 gpt Ag, 0.1 gpt Au, 2.4% Pb, 3.5% Zn; 14.0 m @ 162 gpt Ag, 0.2 gpt Au, 1.4% Pb, 0.5% Zn; 1.1 m @ 227 gpt Ag, 0.1 gpt Au, 3.7% Pb, 1.9% Zn. As of May 2019, the indicated resources stood at 37.5 M Oz Ag, 40 M Lb Cu, 303 M Lb Pb, 897 M Lb Zn; and inferred resources at 45.7 M Oz Ag, 76 M Lb Cu, 253 M Lb Pb, 796 M Lb Zn.
  • GR Silver Mining Ltd. reported results from the final drill holes to be incorporated in to the incoming resource estimation on the Plomosas mine area of the Plomosas project in Sinaloa. True width highlighted intervals comprise 29.5 m @ 1.13 gpt Au, 0.1% Zn (including 9.1 m @ 2.12 gpt Au, 0.1% Pb, 0.1% Zn); 6.4 m @ 0.81 gpt Au, 0.1% Zn; 3.6 m @ 163 gpt Ag, 0.05 gpt Au, 6.4% Pb, 3.7% Zn, 0.2% Cu; 6.1 m @ 120 gpt Ag, 0.48 gpt Au, 2.8% Pb, 0.7% Zn, 0.1% Cu; 0.9 m @ 5.24 gpt Au, 0.2% Pb, 0.2% Zn; 11.8 m @ 328 gpt Ag, 0.19 gpt Au, 0.5% Pb, 1.2% Zn; 1.0 m @ 680 gpt Ag, 0.04 gpt Au, 0.6% Pb, 2.4% Zn; 4.9 m @ 143 gpt Ag, 1.2% Pb, 4.3% Zn.
  • Capitan Mining Inc. reported results for four reverse circulation drill holes from the Capitan deposit at its Peñoles project in Durango. Highlighted intervals comprise 56.4 m @ 0.58 gpt Au, 14 gpt Ag (including 10.7 m @ 0.99 gpt Au, 16 gpt Ag); 38.1 m @ 0.26 gpt Au; 6.1 m @ 0.28 gpt Au, 5 gpt Ag; 187.5 m @ 0.23 gpt Au, 1 gpt Ag (including 29.0 m @ 0.51 gpt Au, 3 gpt Ag); 10.7 m @ 0.25 gpt Au, 4 gpt Ag; 41.1 m @ 0.24 gpt Au, 5 gpt Ag. Capitan Mining expects to complete a 6,000 m reverse circulation program during the summer whilst continuing exploration work on additional targets.
  • Guanajuato Silver Company Ltd. provided drilling results from El Pinguico, Guanajuato. Highlighted core length results comprise 1.65 m @ 2.45 gpt Au, 125 gpt Ag; 7.95 m @ 1.35 gpt Au, 39 gpt Ag (including 0.75 m @ 8.81 gpt Au, 208 gpt Ag); 8.10 m @ 1.00 gpt Au, 93 gpt Ag (including 0.90 m @ 5.96 gpt Au, 476 gpt Ag). GS Silver is planning a 3,800 m 18-hole strong drill program, with the aim of estimating resources.
  • Fabled Silver Gold Corp. announced results from underground drilling at the Santa Maria property in Chihuahua. Results comprise 9.90 m @ 0.08 gpt Au, 17 gpt Ag, minor (<0.1%) Pb-Zn-Cu; 1.20 m @ 0.08 gpt Au, 13 gpt Ag, minor Pb-Zn-Cu; 18.0 m @ 0.24 gpt Au, 20 gpt Ag, minor Pb-Zn-Cu; 2.40 m @ 0.06 gpt Au, 36 gpt Ag, minor Pb-Zn-Cu; 0.80 m @ 0.24 gpt Au, 302 gpt Ag, 0.1% Pb, 0.25% Zn; 6.30 m @ 0.04 gpt Au, 17 gpt Ag, minor Pb-Zn-Cu.

ON DEALS AND CORPORATE ISSUES

  • Excellon Resources Inc. informed on the legal action regarding the Antigua concession within its Evolution project in Durango. A subsidiary of Excellon, San Pedro Resources SA de CV has been mandated in court to pay US$23 M in damages for not having in operation the Miguel Auza mine. “Excellon understands from an initial electronic notice that San Pedro’s appeal of this decision to the federal courts of Mexico was dismissed on July 1, 2021, despite the decision not being supported by the evidence, facts or law”.

ON SOCIAL RESPONSIBILITY

  • Fresnillo PLC informed on the re-activation of sports programs in Coahuila.
  • Minera Autlán supports an environmental project in Hidalgo.
  • Fresnillo PLC backs the environment in Durango, aiding the El Porvenir sustainable forest.
  • Newmont Peñasquito installed a solar powered pumping system at El Nuevo Vergel, Zacatecas.

On the image below:  Structure in andesitic rocks exposed on a road cut in Sonora. Picture by Jorge Cirett.

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

By Jorge Cirett

During the 25th week of the year (June 21st to June 28th, 2021), at least 34 press releases were announced by companies working in Mexico. To note, seven companies posted exploration advances on their properties, six posted on financing, warrants extension, options distribution or option payments received, eight more on project development or resource definition and four posted on deals or corporate issues. ON MEXICO ISSUES, there is a new illegal blockade at Los Filos in Guerrero. Canadian Mining companies are suffering the results of the asylum provided by Canada to Mexican union leader Napoleon Gómez Urrutia. ON EXPLORATION, in Sonora, Riverside is receiving funding for exploration of five properties; Ridgestone released surface sample results from Rebeico; Colibri completed an IP survey on Evelyn. In Chihuahua, Kootenay is to rehabilitate underground workings at Columba. In Sinaloa, GR Silver initiated a drilling campaign in the Rosario district. In Durango, Mithril intersected bonanza grade mineralization in drill holes at Copalquin. In Jalisco, Xali Gold identified targets at its Tepic project. ON MINING, Mexus Gold produced some gold at Santa Elena in Sonora. Fresnillo paid US$176.2 M in taxes to the Mexican government in 2020. Santacruz Silver reported a fatality at is Rosario mine in San Luis Potosi. ON FINANCING, Reyna Silver, Wealth Minerals and Southern Silver reported on financing rounds for C$6.06 M, $675 K and $3 M respectively. Vizsla Silver granted options, Radius Gold received $400 K as payment from Pan American Silver related to an earn-in agreement on the Amalia project. Advance Gold extended the expiry date of some warrants. ON RESOURCES AND DEVELOPMENT, Guanajuato Silver informed on advance at getting the El Cubo and Pinguico mines back to production. Minera Alamos informed construction has been completed at Santana, in Sonora. Fabled Silver Gold released drilling results from Santa Maria, in Chihuahua. Discovery Silver released results from drilling targeting bulk mining mineralization at Cordero, in Chihuahua. Vizsla Silver released interesting drilling results from Panuco, in Sinaloa. Silver Dollar signed a surface access agreement at La Joya, in Durango. Oroco Resources received the environmental permit to drill at Santo Tomas, in Sinaloa. ON DEALS AND CORPORATE ISSUES, Vizsla Silver is to spin a Canadian copper asset, forming Vizsla Copper. Fortuna Silver and Roxgold received a recommendation for their business combination. David Jones is on Benjamin Hill as a technical advisor. Orogen Royalties is to trade on the OTCQX ON SOCIAL RESPONSIBILITY, Peñoles, Fresnillo PLC, the Chihuahua Mining cluster and Minera Peñasquito informed on actions the companies realize to help communities and the environment. Great Panther published its sustainability report. Newmont launched its Climate Strategy Report.

ON MEXICO ISSUES

  • Equinox Gold Corp. informed an illegal blockade has temporarily suspended mining activities at Los Filos, Guerrero. the illegal blockades are led by “a group of unionized employees and members of the Xochipala community, both of whom are demanding payments in excess of their contractual agreements.
  • Americas Gold & Silver continues its fight against Napoleón Gómez Urrutia union. The company has had its San Rafael mine in Cosalá, Sinaloa, under siege for 18 months by the section 333 of the Sindicato de Trabajadores Mineros, Metalurgicos, Siderurgicos y Similares de la República Mexicana (the union led by Napoleón Gómez Urrutia). The company asked the Canadian government for help on what they see as an illegal blockade disguised as a dispute for the Union to control the company’s personnel collective contract (speaking of retribution, Canadian Mining companies are paying for the asylum Canada provided to the Union leader, and are set to pay dearly if do not fight back).

ON EXPLORATION

  • Riverside Resources Inc. informed BHP is funding exploration in five projects in Sonora, acquired under the BHP-Riverside Exploration Funding Agreement. A total of US$1.3 M over two years was allocated for generative funding, with an additional US$1 M in specific work programs. Riverside anticipates two projects will see a maiden drill campaign on 2021, of five under evaluation. The Chuin and Palofierro projects are the most advanced, while Sinoquipe, Penitas and Montosa projects are to follow suite. Magneto-teluric (MT) and gravity geophysics, green-mineral, whole rock and prospecting are being used for vectoring and district evaluations.
  • GR Silver Mining Ltd. initiated a 14,000 m exploration drill program in the Rosario district in Sinaloa.  Seven drill rigs are being mobilized to dill vein systems covering a combined 75 km strike length of the Plomosas, San Marcial and La Trinidad project areas. Some of the targets include the GAP area, Loma Dorada structure.
  • Xali Gold Corp. identified drill targets that can extend known mineralization at its Cocula project in Jalisco. These drill targets were identified on a 3D model, and are designed to test potential extensions to previously defined zones. The project displays two styles of mineralization, gold-silver as dissemination in oxidized breccias near surface and higher-grade gold silver and base metals in structures containing stockwork quartz veining.
  • Ridgestone Mining Inc. released assay results from sampling on recent mapping at its Rebeico project in Sonora. Sampling at El Cobre mine returned up to 1.0 m @ 3.5% Cu, 0.32 gpt Au, 32 gpt Ag, 0.136% Mo on the main structure. Regional mapping returned up to 1.2 m @ 1.06% Cu, 2.40 gpt Au, 6 gpt Ag in a quartz vein and 1.5 m @ 0.08% Cu, 3.45 gpt Au in a breccia. “The El Cobre mine was put into production by Asarco during the sixties and was developed on two levels, with the upper level having over 230 metres of drift development and the lower level having over 100 metres long of drift development at a depth of 180 metres below surface. The main structure, with widths varying from 1 to 5 metres, has been emplaced within a granodiorite intrusive and remains open along strike and at Depth”.
  • Kootenay Silver Inc. announced the signing of a contract with Tlasa Obras Mineras S. de R.L. de C.V. to rehabilitate the historic underground workings of the F vein at the Coulmba project in Chihuahua. Work is expected to take four months.
  • Colibri Resource Corp. reported the completion of the previously announced IP survey at Evelyn, in Sonora. The IP survey consisted of 38-line km of 3D-IP covering the eastern half of the Evelyn project. “…the highest chargeability response is spatially associated with the Main Zone within the Cerro Rojo target area…. the Company has decided to extend the IP survey to the western boundary thus completing 3D IP coverage over most of the property”.
  • Mithril Resources Ltd. released drill results from its Copalquin project in Durango. Highlighted core length results comprise: 6.8 m @ 74 gpt Au, 841 gpt Ag (including 2.1 m @ 235 gpt Au, 2,554 gpt Ag); 4.61 m @ 1.87 gpt Au, 89 gpt Ag; 7.60 m @ 2.34 gpt Au, 144 gpt Ag; 1.0 m @ 2.64 gpt Au, 167 gpt Ag; 6.0 m @ 1.41 gpt Au, 66 gpt Ag; 1.80 m @ 2.38 gpt Au, 53 gpt Ag; 1.05 m @ 2.36 gpt Au, 95 gpt Ag; 0.50 m @ 28.9 gpt Au, 471 gpt Ag; 1.66 m @ 2.41 gpt Au, 153 gpt Ag. Drilling continues along El Refugio structure, and soil sampling is in progress to define the structure a further 1.3 km to the west.

ON MINING

  • Mexus Gold US. informed its Santa Elena mine in Sonora produced 20 Oz Au last week and confirmed the presence of 30 ounces more on the activated carbon cells.
  • Fresnillo PLC. presented a report on the payments to the governments of Mexico, Chile and Peru. In Mexico, Fresnillo paid US$ 139.3 M in taxes, US$1.48 M in royalties and US$35.4 M in concession fees, for a total of US$176.2 M.
  • Santacruz Silver Mining Ltd. reported a fatality at its Rosario project in San Luis Potosi. ”The accident took place at the Membrillo mine as a result of a rock fall”.

ON FINANCING

  • Vizsla Silver Corp. granted 4.15 M options to directors, officers, employees and consultants (Panuco, Sinaloa).
  • Reyna Silver Corp. has over-sold the offering and completed a brokered private placement for gross proceeds of C$6.06 M (GuiGui, Chihuahua).
  • Radius Gold Inc. reported that Pan American Silver, its joint venture partner in at the Amalia project in Chihuahua, has paid a scheduled US$400 K property payment to Radius, and plans further drilling at the project. “Exploration completed at Amalia includes 31 holes for 10,588m of diamond core drilling, primarily at the San Pedro zone on the Amalia structure. The next targets to be drill tested are El Cuervo…. and at California”.
  • Wealth Minerals Ltd. closed the second tranche of the placement, for gross proceeds of $675 K (Coronado, Chihuahua).
  • Southern Silver Exploration Corp. closed the non-brokered private placement financing for gross proceeds of $3 M (Cerro Las Minitas, Durango).
  • Advance Gold Corp.  applied to the TSX Venture Exchange to extend the expiry date on 3.08 M share purchase warrants issued pursuant to the private placement financing in July 2019, by one year, to July 9, 2022 (Tabasqueña, Zacatecas).

ON RESOURCES AND DEVELOPMENT

  • Guanajuato Silver Company Ltd. informed on staffing mill and mine refurbishment at El Cubo, Guanajuato. Also the company is doing metallurgical studies on El Cubo and Pinguico deposits.
  • Minera Alamos Inc. informed all construction has now been completed at Santana, in Sonora. “All construction has now been completed with the full leach pad now lined and available for stacking….. First loading of mined material from the Nicho Norte pit commenced earlier this month …in preparation for the commissioning of leach operations around the end of the June”.
  • Fabled Silver Gold Corp. released drilling results from its ongoing campaign at Santa Maria, Chihuahua. Highlighted core length results comprise 10.50 m @ 0.38 gpt Au, 31 gpt Ag, 0.2% Pb, 1.0% Zn Cu (including 1.20 m @ 1.37 gpt Au, 51 gpt Ag, 0.6% Pb, 4.2% Zn); 27.50 m @ 0.19 gpt Au, 20 gpt Ag (including 1.20 m @ 0.52 gpt Au, 163 gpt Ag, 0.3% Pb, 1.0% Zn); 19.65 m @ 0.44 gpt Au, 52 gpt Ag, 0.3% Pb, 0.6% Zn (including 7.90 m @ 0.74 gpt Au, 104 gpt Ag, 0.5% Pb, 1.2% Zn); 1.00 m @ 0.33 gpt Au, 322 gpt Ag, 0.3% Pb, 0.4% Zn.
  • Discovery Silver Corp. released results from 12 drill holes targeting bulk-mining mineralization at its Cordero project in Chihuahua. Highlighted results comprise 65.9 m @ 69 gpt Ag, 0.11 gpt Au, 0.7% Pb, 3.7% Zn; 143 m @ 39 gpt Ag, 0.13 gpt Au, 0.4% Pb, 1.3% Zn; 59.5 m @ 54 gpt Ag, 0.08 gpt Au, 0.9% Pb, 1.5% Zn; 86.0 m @ 33 gpt Ag, 0.17 gpt Au, 0.3% Pb, 1.2% Zn; 82.3 m @ 44 gpt Ag, 0.06 gpt Au, 0.7% Pb, 1.5% Zn; 59.4 m @ 48 gpt Ag, 0.06 gpt Au, 1.0% Pb, 2.0% Zn; 48.9 m @ 85 gpt Ag, 0.08 gpt Au, 0.6% Pb, 1.1% Zn.
  • Vizsla Silver Corp. provided results for fourteen holes from the Napoleon prospect at the Panuco project in Sinaloa. Highlighted true width results comprise 3.73 m @ 2.85 gpt Au, 105 gpt Ag, 0.7% Pb, 1.4% Zn; 2.62 m @ 5.51 gpt Au, 476 gpt Ag, 1.5% Pb, 1.1% Zn; 8.36 m @ 5.58 gpt Au, 372 gpt Ag, 0.2% Pb, 0.9% Zn (including 2.31 m @ 18.88 gpt Au, 1,306 gpt Ag, 0.7% Pb, 2.1% Zn; 3.21 m @ 0.94 gpt Au, 30 gpt Ag, 0.1% Pb, 0.9% Zn; 3.45 m @ 1.81 gpt Au, 43 gpt Ag, 0.3% Pb, 1.2% Zn; 11.34 m @ 3.11 gpt Au, 88 gpt Ag, 0.3% Pb, 2.1% Zn; 4.87 m @ 3.70 gpt Au, 112 gpt Ag, 0.3% Pb, 1.5% Zn.
  • GoGold Resources Inc. informed on results from seven drill holes from El Favor deposit at its Los Ricos North project in Jalisco. Highlighted core length results comprise: 15.0 m @ 0.41 gpt Au, 136 gpt Ag (including 6.4 m @ 0.80 gpt Au, 258 gpt Ag); 20.6 m @ 0.13 gpt Au, 44 gpt Ag; 10.6 m @ 0.09 gpt Au, 38 gpt Ag; 6.5 m @ 0.17 gpt Au, 81 gpt Ag; 63.7 m @ 0.11 gpt Au, 47 gpt Ag (including 9.1 m @ 0.54 gpt Au, 186 gpt Ag); 61.3 m @ 0.56 gpt Au, 243 gpt Ag (including 9.3 m @ 2.06 gpt Au, 973 gpt Ag); 9.4 m @ 0.10 gpt Au, 45 gpt Ag; 6.8 m @ 0.12 gpt Au, 136 gpt Ag; 4.8 m @ 0.25 gpt Au, 88 gpt Ag; 14.4 m @ 0.17 gpt Au, 49 gpt Ag; 35.2 m @ 0.17 gpt Au, 43 gpt Ag. “Three of the four major veins (Salomon, Guitarrillas and Los Chivos) appear to converge into a 100m wide zone at the western end of the El Favor deposit in the vicinity of the Hundido Pit….”.
  • Silver Dollar Resources Inc. entered into a formal surface access agreement with the ejido Noria de Pilares, at its La Joya project in Durango.
  • Oroco Resources Corp. received approval by SEMARNAT to conduct a drilling program at its Santo Tomas project in Sinaloa. The permit allows for 46 drill locations to test the Brasiles gossan zone and the Western blind target, both supported by a 3D IP survey, and nine drill locations on the North zone for confirmation and expansion drilling.

ON DEALS AND CORPORATE ISSUES

  • Vizsla Silver Corp. informed on the approval of the proposed plan of arrangement on which Vizsla Silver is to spin-out its British Columbia exploration assets to Vizsla Copper Corp. (Panuco, Sinaloa).
  • Fortuna Silver Mines Inc. and Roxgold Inc. informed two leading proxy advisory firms have recommended that both Fortuna and Roxgold shareholders vote for the proposed business combination (San Jose, Oaxaca).
  • Benjamin Hill Mining Corp. announced the appointment of David M. Jones, M.Sc., as technical advisor to the company (Sonora Gold, Sonora).
  • Orogen Royalties Inc. announced its shares have been qualified to trade on the OTCQX Best Market (Ermitaño, Sonora).

ON SOCIAL RESPONSIBILITY

  • Peñasquito informed its water purification plant in Cedros has increased its capacity to 400 cubic meters per day. The community, which doubled its population since the development of the mine, receives the water at no cost. There are two other water purification plants run by the company at the Mesas and Charcos communities.
  • Greath Panther Mining published its 2020 sustainability report, describing its safety performance, Covid prevention, zero sanctions, decrease in water consumption, community engagement, gender opportunities and diversity policy.
  • The Chihuahua Mining Cluster is aiding in the community effort to extinguish forest fires in the Sierra Madre.
  • Newmont Corp. launched its first Climate Strategy Report, which outlines the Company’s climate-related risks and opportunities, strategic planning, and pathways to achieving climate targets.
  • Industrias Peñoles informed on the reforestation effort with native species in La Laguna region (Coahuila-Durango).
  • Peñoles and Fresnillo PLC are to support micro business and auto-development economic proyects in Caborca, Sonora.

On the image below:  Sheeted quartz veining in granodioritic intrusive rocks in Sinaloa. Picture by Jorge Cirett.