SEMARNAT

The Mining and Exploration News in Mexico: Highlights on the First Week of November, 2023

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Fault plane showing slickensides

By Miguel A Heredia

During the 44th week of the year (October 30th to November 5th, 2023), at least 26 press releases were announced by companies working in Mexico, and 1 news published by the media, with nine reporting resources and developments of their properties, five disclosing deals and corporate issues, four communicating production results, three, announcing financing issues, three informing on exploration results, two commenting on Mexican issues, and one discussing social issues. ON MEXICO ISSUES, The Tax Administration Service (SAT) has collected MXP $65,981M (about USD $3,665M) in this six-year term from the mining companies. Regency Silver reported their best drilling intercepts in Mexico on the first week of November, 2023. ON EXPLORATION, In Sonora, Aztec commenced a RC drilling program at its Cervantes project. In Chihuahua, Kingsmen reported results from its ongoing surface sampling program in the southeast part of the Las Coloradas project. Durango, Silver Wolf received the exploration diamond drilling permit for its Ana Maria project. ON MINING, Americas Gold and Silver reported Q3, 2023 production results from its Cosala Mine Complex, Sinaloa. Avino announced that it will be reporting Q3, 2023 production and financial results from its Avino Mine, Durango on November 8, 2023. Sierra Metals also notified that it will be presenting Q3, 2023 results from its Bolivar Mine in Chihuahua on November 13, 2023. First Majestic reported Q3, 2023 production and financial results from their Mexican operations. ON FINANCING Minera Alamos signed definitive documentation for its Cerro de Oro construction financing package for up to USD $25M. Silver Bull announced non-brokered private placement for gross proceeds of CAD $1,285,350 (Sierra Mojada project, Coahuila). First Majestic declared a cash dividend payment in the amount of $0.0046 per common share for the third quarter of 2023.Minaurum closed a non-brokered private placement for gross proceeds of CAD $800,250 (Alamos Silver project, Sonora). ON RESOURCES AND DEVELOPMENT, Atacama Copper and TCP1 announced a maiden resource estimate for theirs Cristina and Yécora projects located in Chihuahua and Sonora respectively. Torex provided a Q3, 2023 update on its Media Luna project, Guerrero. Silver Tiger filed a technical report to announce an updated mineral resource estimate at its El Tigre project, Sonora.  Silver Tiger announced a Preliminary Economic Assessment (PEA) on its El Tigre project, Sonora. Golden Tag released first results from its drill program at its La Parrilla Mine, Durango. Regency Silver announced results from hole REG-23-21 collared at its Dios Padre project, Sonora. Sierra Madre presented its first project-wide resource estimate for its La Guitarra Mine, State of Mexico. Guanajuato Silver filed a National Instrument 43-101 Technical Report for a new Mineral Resource Estimate (MRE) for its San Ignacio Mine, Guanajuato. ON DEALS AND CORPORATE ISSUES, Fortuna Silver reported that the Mexican Federal Administrative Court has ruled in favour of Minera Cuzcatlan, Fortuna’s Mexican subsidiary, and re-instated the 12-year environmental impact authorization (EIA) for the San Jose Mine, Oaxaca. Monumental Minerals announced the resignation of its CEO, effective October 30, 2023 (Jemi rare Earth Element project, Coahuila).  Golden Tag announced name change to Silver Storm Mining Ltd, being approved later on by shareholders, its Board of Directors and the Toronto Stock Exchange (TSX) (La Parrilla Mine, Durango).  Sonoran Desert filed documents with the TSX seeking approval for consolidation of common shares (Cuatro Hermanos project, Sonora).  ON SOCIAL RESPONSIBILITY, Fernando Alanís, general director of Baluarte Minero, a unit within Industrias Peñoles, the world’s largest producer of refined silver, stated that the investment funds prioritize the ESG criteria of mining companies, because their implementation creates certainty.

ON MEXICO ISSUE

  • The Tax Administration Service (SAT) has collected MXP $65,981M (about USD $3,665M) in this six-year term from the mining companies. It is 11 times more than with the former government. The Tax Administration Service has explained that the MXP $65,981M is the result of the 2023 Master Plan and 307 audits completed.
  • Regency Silver Corp., reported their best drilling intercepts in Mexico on the first week of November, 2023. Details are shown in the table below:

ON EXPLORATION

  • Aztec Minerals Corp., commenced a RC drilling program at its Cervantes project in Sonora. “The drill program has been optimized to focus on expanding the California zone oxide mineralization, which remains open laterally in every direction, with a minimum 11 holes and 1,600m RC drilling in this current stage of exploration”.
  • Kingsmen Resources Ltd., reported results from its ongoing surface sampling program of old workings along the Soledad and Soledad II structures and their subsidiary structures in the southeast part of the Las Coloradas project, in Chihuahua. Twenty samples were collected with one returning > 400 g/t Ag; one returning > 300 g/t Ag; one returning >200 g/t Ag; and one returning > 100 g/t Ag. Three areas with high grade have been identified. Prospecting and sampling continues.
  • Silver Wolf Exploration Ltd., received from the Secretariat of Environment and Natural Resources (SEMARNAT), the exploration diamond drilling permit for the southern El Soldado claim at its Ana Maria project, Durango. The company has designed a drilling program for up to 4,800m over 16 holes.

ON MINING

  • Americas Gold and Silver Corporation reported Q3, 2023 production results from its Cosala Mine Complex, Sinaloa. The company produced 178K Oz Ag, 2.8M Lb Pb, and 9M Lb Zn.
  • Avino Silver and Gold Mines Ltd., announced that it will be reporting Q3, 2023 production and financial results from its Avino Mine, Durango on November 8, 2023.
  • Sierra Metals Inc., also notified that it will be presenting Q3, 2023 results from its Bolivar Mine in Chihuahua on November 13, 2023.
  • First Majestic Silver Corp., reported Q3, 2023 production and financial results from their Mexican operations. Table below shows results by mine:

ON FINANCING

  • Minera Alamos Inc., signed definitive documentation for its Cerro de Oro construction financing package for up to USD $25M with Auramet International Inc., and Auramet Capital Partners LP  which is comprised of a loan facility for up to USD $15M and a USD $10M royalty. Upon execution of the Cerro de Oro Financing Documents, the company also completed a drawdown of an initial USD $5M under the loan facility to advance certain pre-construction work related to the Cerro de Oro project, Zacatecas.
  • Silver Bull Resources Inc., announced non-brokered private placement issuing a fully subscribed 11,685,000 units at a price of CADS $0.11 per unit for gross proceeds of CAD $1,285,350. Gross proceeds will be used for general working capital and corporate purposes, including investigation and potential acquisition of additional exploration projects (Sierra Mojada project, Coahuila).
  • First Majestic Silver Corp., declared a cash dividend payment in the amount of $0.0046 per common share for the third quarter of 2023. The third quarter cash dividend will be paid to holders of record of First Majestic’s common shares as of the close of business on November 15, 2023, and will be distributed on or about November 30, 2023.
  • Minaurum Gold Inc., closed a non-brokered private placement for gross proceeds of CAD $800,250. The company will use the net proceeds for exploration of the Alamos Silver project, Sonora, and for general working capital purposes.

ON RESOURCES AND DEVELOPMENT

  • Atacama Copper Corporation and TCP1 Corporation announced a maiden resource estimate for theirs Cristina and Yécora projects located in Chihuahua and Sonora respectively. At Cristina project, Chihuahua, the companies estimated indicated resources of 17.5M tonnes of 0.51g/t Au, 34 g/t Ag, 0.5% Zn, 0.2% Pb, and 0.04% Cu (1.33 g/t AuEq) for a contained 752K Oz AuEq, and Inferred resources of 19M tonnes of 0.51 g/t Au, 27 g(/t Ag, 0.5% Zn, 0.2% Pb, and 0.05% Cu (1.27 g/t AuEq) for a contained 777K Oz AuEq.  The resource estimate is based on 220 diamond drill holes completed between 2010 and 2022 for approximately 70,000 m of drilling in total. Preliminary metallurgical test work suggests recoveries into concentrate of 75-85% for gold, 85-95% for silver, 80-90% for zinc and lead, and 70-80% for Cu. At Yécora project, Sonora, the companies estimated indicated resources of 25M tonnes of 0.30% Cu, 28 g/t Ag, and 749ppm Mo (0.79% CuEq9 for a contained 444M Lb CuEq, and inferred resources of 11.2M tonnes of 0.30% Cu, 24 g/t Ag, and 831 ppm Mo (0.78% CuEq for a contained 193M Lb CuEq. The resource estimate is based on 34 diamond drill holes and 8 reverse circulation drill holes completed between 2014 and 2022 for 14,006 m of drilling in total. Preliminary metallurgical test work projected a copper concentrate grade of 20-25% with a recovery of approximately 90% and containing 75 to 85% of the silver. The molybdenum concentrate grade was projected to be 50-55% with a recovery of 80 to 90%. Future testing will determine the feasibility of recovering lead and zinc to a separate concentrate, and thus zinc and lead were not included in the current resource estimate.
  • Torex Gold Resources Inc., provided a Q3, 2023 update on its Media Luna project, Guerrero. “Development of Media Luna continues to track well to plan, with first concentrate production remaining on track for late 2024 and commercial production in early 2025. At quarter-end, the Media Luna Project was 49% complete across engineering, procurement, underground development/construction, and surface construction. With 68% of upfront expenditures committed (including 42% incurred), expenditures to date have tracked reasonably well to the initial budget of $875 million, noting the stronger Mexican peso remains a headwind to manage. With $242 million incurred on the project year-to-date, project spending in 2023 is tracking toward the lower end of the annual guided range of $390 million to $440 million. Solid progress was made with respect to underground development and construction, which included another notable quarter of advance in the schedule-critical Guajes Tunnel and mobilization of the underground construction contractor. Breakthrough of the Guajes Tunnel is expected by year-end, three months ahead of schedule.  Significant progress was also made on the engineering front, which is expected to drive increased procurement activity through year-end. Surface construction continued with pad and foundation preparation for several key areas advanced during the quarter. The pace of construction is set to pick up in Q4 as concrete works ramp up, larger equipment deliveries to the south side commence with the completion of the Mazapa bypass road, and steel erection at the flotation plant begins before year-end.  The Media Luna Project is now soundly at the halfway mark and tracking to schedule and budget. With solid ongoing cash flow from El Limón Guajes and a healthy balance sheet with strong liquidity, we remain well positioned to execute on the remainder of the development plan over the next 15 months.”
  • Silver Tiger Metals Inc., filed a technical report to announce an updated mineral resource estimate (MRE) at its El Tigre project, Sonora. Table below shows the updated MRE for El Tigre project, Sonora:

In addition to the exploration work completed at El Tigre project, an exploration target was established as follows: 7 to 9M tonnes at 3.0 to 3.5 g/t AuEq for 675K Oz to 1M Oz AuEq.

  • Silver Tiger Metals Inc., announced a Preliminary Economic Assessment (PEA) on its El Tigre project, Sonora. Highlights of the PEA, with a base case silver price of $23.75/Oz and gold price of $1,850/Oz include an after-tax net present value (NPV) (using a discount rate of 5%) of  USD $287M with an after-tax IRR of 55.8% and payback period of 1.7 years (base case); 13-year mine life recovering a total of 60M payable AgEq or 776K Oz AuEq, consisting of 16M Oz Ag and 571K Oz Au; total project undiscounted after tax cash flow of USD $445M; initial capital costs of USD $59M, including USD $7.7M in contingency costs, over an expected 12-month build, expansion capital of USD $33M and sustaining capital costs of USD $31M over the life of mine (LOM); average LOM operating cash costs of USD $803/Oz AuEq, and all in sustaining costs (AISC) of USD $843/Oz AuEq or average LOM operating cash costs of USD $10/Oz AgEq, and AISC of USD $11/Oz AgEq; and average annual production of approximately 4.6MOz AgEq or 59,000 Oz AuEq.
  • Golden Tag Resources Ltd., released first results from its diamond drilling program at its La Parrilla Mine, Durango. Drilling highlights include hole Q-23-001 with 65 g/t Ag, 0.16 g/t Au, 1.3% Pb, 3.5% Zn, and 0.05% Cu (206 g/t AgEq) over 5.20m, including 145 g/t Ag, 0.11 g/t Au, 2.4% Pb, 2.9% Zn, and 0.08% Cu (299 g/t AgEq) over 1.64m, including 51 g/t Ag, 0.39 g/t Au, 1.4% Pb, 7.6% Zn, and 0.06% Cu (328 g/t AgEq) over 1.60m; hole Q-23-003 with 125 g/t Ag, 0.25 g/t Au, 3% Pb, 5.7% Zn, and 0.08% Cu (381 g/t AgEq) over 0.88m, plus 43 g/t Ag, 0.03g/t Au, 0.8% Pb, 8.6% Zn, and 0.18% Cu (300 g/t AgEq) over 0.32, plus 90 g/t Ag, 0.3 g/t Au, 0.7% Pb, 10.3% Zn, and 0.07% Cu (414 g/t AgEq) over 0.84m; and hole Q-23-005 with 124 g/t Ag, 0.61 g/t Au, 0.6% Pb, 0.3% Zn, and 0.27% Cu (198 g/t AgEq) over 1.87m, plus 76 g/t Ag, 0.32 g/t Au, 0.3% Pb, 4.2% Zn, and 0.18% Cu (225 g/t AgEq) over 1.52m, plus 29 g/t Ag, 0.08 g/t Au, 0.1% Pb, 4.9% Zn, and 0.11% Cu (172 g/t AgEq) over 0.97m. With these drill results Golden Tag extended the C460B Zone 110m at depth in La Parrilla Mine Complex, Durango.
  • Regency Silver Corp., announced results from hole REG-23-21 collared at its Dios Padre project, Sonora. It intersected 0.61 g/t Au over 9.5m, plus 5.34 g/t Au over 54.65m, including 7.36 g/t Au over 38m, including 8.7 g/t Au over 28.9m, and plus 0.95 g/t Au over 7.9m. “The 2023 drill campaign consisted of 6105.25m in 10 holes.  8 of the 9 holes targeting the lower Dios Padre breccia zone intersected mineralized pyrite-specularite breccia and confirm the mineralized breccia zone has a strike of at least 180m and depth extent of at least 150m while the breccia remains open both along strike, up-dip towards the old silver mine, and at depth”.
  • Sierra Madre Gold and Silver Ltd., presented its first project-wide resource estimate for its La Guitarra Mine, State of Mexico. The company reported indicated resource of 3,482,000 tonnes of 146 g/t Ag and 0.96 g/t Au (220 g/t AgEq) for a total of 18,073,000 Oz Ag and 118K Oz Au (27,207,000 Oz AgEq) contained and inferred resources of 4,105,000 tonnes of 113 g/t Ag and 0.52 g/t Au (153 g/t AgEq) for a total of 14,937,000 Oz Ag and 68,000 Oz Au (20,199,000 Oz AgEq) contained.
  • Guanajuato Silver Company Ltd., filed a National Instrument 43-101 Technical Report for a new Mineral Resource Estimate (MRE) for its San Ignacio Mine, Guanajuato. Table below shows the new MRE for San Ignacio Mine, Guanajuato (Effective date September 21, 2023):

ON DEALS AND CORPORATE ISSUES

  • Fortuna Silver Mines Ltd., reported that the Mexican Federal Administrative Court has ruled in favour of Minera Cuzcatlan, Fortuna’s Mexican subsidiary, and re-instated the 12-year environmental impact authorization (EIA) for the San Jose Mine, Oaxaca. “The San Jose Mine is in full compliance with all material environmental laws and continues to operate under the terms of the EIA. The decision of the Court is subject to appeal by the Secretaria de Medio Ambiente y Recursos Naturales (SEMARNAT), and if appealed, the permanent injunction that the company already has will remain in effect”.
  • Monumental Minerals Corp., announced the resignation of its CEO, effective October 30, 2023 (Jemi rare Earth Element project, Coahuila).
  • Golden Tag Resources Ltd., announced name change to Silver Storm Mining Ltd, being approved later on by shareholders, its Board of Directors and the Toronto Stock Exchange (TSX). the Company’s shares will commence trading on the TSXV, the OTCQB Exchange, and Frankfurt Stock Exchange under Silver Storm Mining Ltd. effective at the opening of trading on or about November 7,2023, and will trade on the TSXV under the new symbol (TSXV: SVRS) on the OTCQB under the symbol (OTCQB: SVRSF) and on the FSE under the symbol (FSE: SVR) (La Parrilla Mine, Durango).
  • Sonoran Desert Copper Corporation filed documents with the TSX seeking approval for consolidation of the outstanding common shares of the company, on the basis of one post-consolidation common share for every four pre-consolidation common shares. The common shares will continue trading on the TSX Venture Exchange on a post-consolidation basis under the name Sonoran Desert Copper Corporation and the trading symbol SDCU (Cuatro Hermanos project, Sonora).

ON SOCIAL RESPONSIBILITY

  • Fernando Alanís, general director of Baluarte Minero, a unit within Industrias Peñoles, the world’s largest producer of refined silver, stated that the investment funds prioritize the ESG criteria of mining companies, because their implementation creates certainty. He gave three examples of this: the payment of taxes, the accident rate and development in mining communities. More and more investors and financial institutions are using ESG or sustainability scores, ratings and benchmarking studies provided by various organizations that evaluate corporate performance and governance related to environmental and social issues, including climate change, when making their financing and voting decisions.

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 fault plane showing slickensides in an epithermal vein system in a prospect in Chihuahua, Mexico. Photo by Miguel A Heredia.

The Mining and Exploration News in Mexico: Highlights on the Fourth Week of October 2023

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By Jorge Cirett                                             

During the 43rd week of the year (October 23rd to October 29th, 2023), 22 companies working in Mexico posted news releases. One company reported exploration on one of its properties, five companies released Q3 2023 results and one announced new production from a recently acquired mine. One company informed on the closing of a financing round and one other the sale of more than 10% of its shares by another company.  Three companies released drilling results from their advanced projects, one on the doubling of processing capacity, one the results of an FS on its advanced property, one offered an update on construction of a new mine and another one presented a PEA on its advanced project. One company updated on the acquisition process of a property and four more on director’s appointments and results of their AGM’s. ON MEXICO ISSUES, The AIMMGM Convention in Acapulco, the biggest Mining event in Mexico held every two years, was cancelled after its opening, as the city received overnight the direct impact of a category five hurricane. ON EXPLORATION, In Sonora, Tocvan Ventures started the environmental permitting process at Pilar. ON MINING, Agnico Eagle Mines, Alamos Gold, MAG Silver, Fresnillo PLC and Newmont presented Q3 2023 production results. Impact Silver started production at the Plomosas mine in Chihuahua. ON FINANCING, Avino Silver informed Coeur Mining is to sell more than 10% of its stock. Regency Silver completed its financing round.  ON RESOURCES AND DEVELOPMENT, Vizsla Silver, Gatos Silver and Endeavour Silver reported drilling results from the Panuco, Cerro Los Gatos and Parral properties respectively. Luca Mining is expanding the Tahuehueto plant to double production. Discovery Silver presented results from a feasibility study on its Cordero project. Endeavour Silver provided a Q3 construction update on the Terronera project. GoGold Resources presented the results of a preliminary economic assessment (PEA) on its Los Ricos South project. ON DEALS AND CORPORATE ISSUES, Defiance Silver and Chesapeake Gold announced officer’s appointments. Excellon Resources rescheduled its AGM and Fabled Silver updated on the agreement to acquire the Mecatona project from Kootenay. ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUES

ON EXPLORATION

  • Tocvan Ventures Corp. started the environmental permitting process of its Pilar project in Sonora. A detailed UAV LiDAR survey across Pilar and the newly acquired ground. The expansion area covers 21.7 square km, and the study is to provide high-resolution surface modelling.

ON MINING

  • Impact Silver Corp. announced the first production by the company at the recently acquired Plomosas mine in Chihuahua. The company did “an extensive rehabilitation and upgrade program at the site, including inside the mine, at the mill and on all associated mobile equipment and infrastructure”. The first concentrate shipment was sent to the smelter. Impact is to seek 200 tpd processing in H1/2024.
  • Agnico Eagle Mines Ltd. informed that during Q3 2023 “Minera de San Nicolás, which is jointly owned by the Company and Teck Resources Limited, continued to work on the feasibility study at San Nicolás in Zacatecas State, Mexico, and stakeholder engagement on the permitting process”. At Pinos Altos, in Chihuahua, 450 K tonnes were milled at 4,891 tpd, averaging 1.84 gpt Au, to produce 25,386 Oz Au at $1,581 per Oz Au and a total cash cost of $1,310 per Oz Au. At La India, in Sonora, 970 K tonnes were milled at 10,543 tpd, averaging 1.1 gpt Au, at a production cost of $1,271 per Oz Au and a total cash cost of $1,156 per Oz Au.
  • Alamos Gold Inc. reported financial results for the third quarter 2023. At the Mulatos district in Sonora 53,900 Oz Au were produced at mine-site cash cost $898 per Oz Au and a mine site AISC of $1,045 per Oz Au. At La Yaqui Grande open pit, 918 K tonnes of ore were mined, 5.72 M tonnes of waste moved with a waste to ore ratio of 5.0, crushing 10,300 tpd, with 948.4 K tonnes staked averaging 1.50 gpt Au, with 45,722 Oz Au staked and an average recovery rate of 84%. At the Mulatos open pit, 80.9 K tonnes of ore were mined, 130.5 K tonnes of waste moved with a waste to ore ratio of 1.61, crushing 11,800 tonnes per day, stacking 1.08 M tonnes averaging 1.55 gpt Au, to stake 53,923 Oz Au with an average recovery rate of 29%. “Production is expected to decrease in the fourth quarter reflecting the depletion of the Mulatos pit and a decrease in grades at La Yaqui Grande”.
  • MAG Silver Corp. reported Q3 2023 production from Juanicipio (56%/44% Fresnillo/MAG) in Zacatecas. “Ramp up of the Juanicipio plant continued to be the focus during the quarter with the plant reaching its target milling rate of 4,000 tonnes per day (“tpd”) in September”. During the period 322.2 K tonnes were processes, grading 1.32 gpt Au, 523 gpt Ag, to produce 9,444 Oz Au, 4.78 M Oz Ag.
  • Fresnillo Silver PLC. reported Q3 2023 production results. During the period 13.4 M OZ were produced, 0.67 M Oz from silverstream for a total of 14.1 M Oz Ag, 132,627 Oz Au, 14,575 tonnes Pb, 29,073 tonnes Zn, from the Fresnillo, Saucito, Pyrites Plant, Ciénega, San Julian Veins, San Julian DOB, Herradura, Nochebuena and Juanicipio (56%/44% Fresnillo/MAG Silver).
  • Newmont Corp. announced third quarter 2023 results, with some comments on its Mexico operations. At Peñasquito, in Zacatecas, operations were suspended by a strike that was resolved after the quarter’s end, therefore there was no Au, Ag, Pb, Zn production.

ON FINANCING

  • Avino Silver & Gold Mines Ltd. announced that Coeur Mining Inc. will offer for sale up to 14 M common shares of Avino currently held by Coeur, for gross proceeds to Coeur of approximately US$7 M. Avino will not receive any proceeds form the secondary offering (Avino, Durango).
  • Regency Silver Corp. completed the final tranche of a previously announced non-brokered private placement, raising an upsized total of CAD$1.75 M (Dios Padre, Sonora).

ON RESOURCES AND DEVELOPMENT

  • Vizsla Silver Corp. reported results from five new drill holes at its Panuco project in Sinaloa. Recent drilling intercepted the new El Molino vein, which is 250 m from the Copala resource area, and was discovered by a hole planned to condemn the area. Highlighted true width intercepts comprise 1.65 m @ 8.37 gpt Au, 1,552 gpt Ag, 0.5% Pb, 1.2% Zn; 1.10 m @ 0.62 gpt Au, 188 gpt Ag, 0.8% Pb, 2.5% Zn; 1.7 m @ 2.25 gpt Au, 1,000 gpt Ag, 0.3% Pb, 0.5% Zn; 4.15 m @ 0.96 gpt Au, 179 gpt Ag, 0.2% Pb, 4.4% Zn. “El Molino consists of alternating bands of quartz and sulfides (sphalerite, galena and acanthite), and shows similar vein textures to those observed at Napoleon and La Luisa veins”.
  • Gatos Silver Inc. updated on exploration at the Los Gatos district in Chihuahua. Resource definition drilling on the SE Deeps zone of the Cerro Los Gatos deposit returned good results highlighting true width intervals of 2.9 m @ 0.46 gpt Au, 550 gpt Ag, 0.30% Cu, 13.7% Pb, 24.5% Zn; 5.8 m @ 0.38 gpt Au, 44 gpt Ag, 1.13% Cu, 2.7% Pb, 2.5% Zn; 2.8 m @ 0.19 gpt Au, 140 gpt Ag, 0.47% Cu, 5.6% Pb, 17.1% Zn; 2.8 m @ 457 gpt Ag, 2.13% Cu, 2.8% Pb, 0.9% Zn; 7.6 m @ 0.58 gpt Au, 148 gpt Ag, 0.73% Cu, 1.9% Pb, 1.6% Zn; 1.22 gpt Au, 207 gpt Ag, 0.74% Cu, 10.1% Pb, 3.4% Zn. On district exploration, two holes were completed at the Santa Ana target and drilling started at Portigueño, detailed mapping and rock geochemistry were completed at the San Luis, El Valle and Lince areas and the first magneto-telluric survey was completed on an area of the Rio conchos basin, near Cerro Los Gatos.
  • Endeavour Silver Corp. reported drill results from last year’s (September 2022 to September 2023) drill program at its Parral project, in Chihuahua. Highlighted true width intercepts comprise 2.33 m @ 0.11 gpt Au, 508 gpt Ag, 0.4% Pb, 1.6% Zn (including 0.43 m @ 0.13 gpt Au, 1,405 gpt Ag, 0.4% Pb, 2.2% Zn); 2.50 m @ 0.28 gpt Au, 336 gpt Ag, 1.0% Pb, 2.5% Zn (including 0.29 m @ 0.40 gpt Au, 1,760 gpt Ag, 0.7% Pb, 4.0% Zn); 9.1 m @ 0.24 gpt Au, 74 gpt Ag, 0.8% Pb, 2.6% Zn); 3.89 m @ 0.30 gpt Au, 198 gpt Ag, 2.0% Pb, 7.3% Zn. Drilling has found mineralization in the Sierra Plata, El Verde and San Joaquín areas “and the extension of San Patricio vein system. All drilling was outside of the published mineral resource estimate and results are expected to grow the resource estimate”.
  • Luca Mining Corp. announced the expansion project to double throughput at its Tahuehueto mine in Durango is progressing according to plan. “The objective is to achieve an installed capacity of 1,000 tpd by year-end and announce commercial production in first quarter of 2024”. A second ball mill is now on site, and once commissioned the milling capacity will be of 1,250 tpd, while the flotation and concentrate filtration circuits already installed can handle 1,000 tpd. A second 500 tpd tailings filter press is soon to be transported.
  • Discovery Silver Corp. presented results from its feasibility study (FS) metallurgical test program from its Cordero project in Chihuahua. Highlights from the report include: Increase Ag recoveries of up to 7% to the precious metals concentrate, significant reduction in reagent consumption, excellent metallurgical performance for oxide-sulfide blending of up to 15% oxides, “Primary grind sensitivity confirmed a coarse grind size of 200 micron passing p80 is the optimal grind size” and the need of a smaller primary crusher.
  • Endeavour Silver Corp. provided a Q3 construction update for its Terronera project in Jalisco. Overall construction progress is 38% complete with more than $95 M spent to date. “The project remains on track and on budget for initial production in Q4 2024”. Total engineering progress is 97% complete, site road access is now established, all permanent camp dormitory units to accommodate 550 personnel have been installed. Mine development is to advance on four fronts (Portal 1 to 4), “Concrete work and rebar installation continued in the SAG and ball mill grinding, coarse ore stockpile and flotation areas, and concrete work began for the primary crusher” and most long-lead major equipment is to be received before year’s end.
  • GoGold Resources Inc. filed a NI 43-101 compliant preliminary economic assessment (PEA) for its Los Ricos South project in Jalisco. The base case scenario envisages US$23.75 per Oz Ag, US$1,850 per Oz Au, an after-tax net present value (NPV 5%) of US$458 M, with an after tax IRR of 37%, an 11-year mine life to produce 47 M Oz Ag, 493 K Oz Au (or 88 M Oz AgEq). An initial capital cost of $148 M and sustaining costs of $72 M over the mine life. The average LOM production cash cost is $8.15 per Oz Ag and an AISC of $9.02 per Oz Ag, to produce 8 M Oz AgEq per year with half of the production from long hole underground mining and half from open pit mining.

ON DEALS AND CORPORATE ISSUES

  • Defiance Silver Corp. announced the appointment of George Cavey to its board of directors, replacing Dunham L. Craig (Zacatecas project, Zacatecas).
  • Chesapeake Gold Corp. announced the appointment of Jean-Paul Tsotsos as interim Chief Executive Officer (Metates, Durango).
  • Excellon Resources Inc. rescheduled its annual and special meeting to November 23, 2023 (Evolución, Durango).
  • Fabled Silver Gold Corp. updated on the agreement with Kootenay Silver Inc. to acquire the Mecatona project, in Chihuahua. “The Company is still attempting to secure the funding required in order to complete the Proposed Transaction. The Company will provide a further update on the closing of the Proposed Transaction in due course”. The company received a six-month extension by the British Columbia Register of Companies and the Exchange.
  • Orogen Royalties Inc. re-elected all of its directors on the annual general meeting (Ermitaño, Sonora).

ON SOCIAL RESPONSIBILITY

  • No relevant news.

On the image below: Bleached and goethite-stained rocks in the Sonoran Desert. Picture by Jorge Cirett.

The Mining and Exploration News in Mexico: Highlights on the Second Week of September 2023

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By Jorge Cirett                                             

During the 37th week of the year (September 11th to September 17th, 2023), 21 companies working in Mexico posted news releases. Two companies reported exploration advances on their properties, and one company reported quarterly results. Six companies informed on the opening or closing of private placements, their assistance to investor conferences, the amendment of terms on subscriptions and information circulars.  Five companies presented drilling results from their properties, one presented an updated mineral resource for its property, another two presented updated PEAs and three more updated on exploration activities on their projects. One company intends to change name and one other informed on litigation advances against the federal government. ON MEXICO ISSUES, no relevant news. ON EXPLORATION, In Oaxaca, Vortex Metals updated on exploration work in Zaachila. In Zacatecas, Radius Gold commenced drilling at Tropico. ON MINING, Starcore International Mines reported results for its first quarter 2023. ON FINANCING, Colibri Resource informed on the closing of a financing round for US$687 K. Sailfish Royalty declared a quarterly dividend. Fortuna Silver and Regency Silver are to attend investor conferences. Sierra Madre Gold and Silver amended the terms of subscription receipts. Bear Creek Mining updated on the convertible promissory notes for the payment of US$25 M on the acquisition of the Mercedes mine in Sonora. ON RESOURCES AND DEVELOPMENT, Vizsla Silver reported drilling results from Panuco, in Sinaloa. Prime Mining announced expansion drilling results from Los Reyes, in Sinaloa. Silver Tiger Metals presented an updated mineral resource estimate for its El Tigre project in Sonora. GoGold Resources released the updated PEA on Los Ricos Sur project in Jalisco. Gold Resource updated on expansion and infill drilling at its Don David mine in Oaxaca. Alamos Gold released excellent drilling results from two target areas on its Mulatos property in Sonora. Sierra Madre Gold and Silver updated on exploration at recently acquired La Guitarra property in Estado de Mexico. Avino Silver & Gold Mines released results from deep drilling at Avino, in Durango. Orex Minerals informed on hyperspectral alteration studies being carried out at Coneto, in Durango. Golden Minerals filed an updated PEA for Velardeña, in Durango. ON DEALS AND CORPORATE ISSUES, Golden Tag Resources intends to change name to Silver Storm Mining. Almaden Minerals reported the Mexican Federal Administrative Court granted a provisional injunction to Almaden, on its fight to get their mining concessions back into good standing. Argonaut Gold reached an agreement with four ejidos to operate for three more years at El Castillo and San Agustín properties in Durango. ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUES

  • No Relevant News.

ON EXPLORATION

  • Radius Gold Inc. commenced drilling at its Tropico project in Zacatecas. The company envisages a 2,000 m drill program on the hot spring type sinter and breccia pipe system, targeting a “Fresnillo-style” mineralized system at depth, and near-surface bulk mineable gold mineralization on a 450 m by 250 m breccia pipe.
  • Vortex Metals Inc. completed the phase I geologic field program for the environmental study at Zaachila, in Oaxaca. “A total of 13 trenches have been excavated … across exposures of weakly metamorphosed Upper Jurassic sedimentary, volcanic and intrusive rocks where historical surface sampling identified copper mineralization. A total of 387 meters of trench have been cut yielding a total of 271 chip samples” with results pending. Copper mineralization has been observed as malachite, azurite, chalcopyrite and bornite, associated to silica-rich exhalite beds, as quartz-carbonate veinlets cutting silicified and chloritized meta-sediments and volcanics (green schist facies) and as bedded units in the metasediments. “In a few of the less oxidized exposures, sericite was widely observed”.

ON MINING

  • Starcore International Mines Ltd. reported results for its first quarter ended July 31, 2023. At the San Martín Mine in Querétaro, 57.7 K tonnes were milled, averaging 1.14 gpt Au, 14.4 gpt Ag, recovering 84.0% Au, 45.8% Ag, to produce 1,800 Oz Au, 12.3 K Oz Ag, at cash cost $2,158 per Oz AuEq. At the end of the period cash on hand was $5.7 M, and working capital $6.2 M. “Our quarterly production reflects our recent difficulties in reaching our higher-grade ore bodies or stopes….. We expect to achieve our targets over the remainder of the year as we are currently completing the development to the high-grade zones”.

ON FINANCING

  • Sailfish Royalty Corp. declared the company’s third quarterly dividend for 2023, in the amount of US$0.0125 per common share (Gavilanes, Durango).
  • Fortuna Silver Mines Inc. announced it is going to be present at the Gold Forum Americas in Colorado Springs, Colorado (USA), from September 17 to September 20, 2023 (San Jose, Oaxaca).
  • Regency Silver Corp. announced its chairman is to be present at the 2023 Kinvestor Days Virtual Conference on September 19, 2023 (Dios Padre, Sonora).
  • Colibri Resource Corp. closed a second and final tranche of its non-brokered private placement, for gross proceeds of US$200 K, which combined with the first tranche proceeds total US$687 K (Evelyn, Sonora).
  • Sierra Madre Gold and Silver Ltd. amended the terms of 5.12 M subscription receipts in order to extend the escrow release conditions and termination for an additional 30-day period (La Guitarra, Estado de México).
  • Bear Creek Mining Corp. updated on the convertible promissory note intended to be issued to defer a US$25 M current liability originally payable to a wholly-owned subsidiary of Equinox Gold Corp. and is issuing an amendment to its management information circular dated August 9, 2023. “The Company further announces that it has closed an unsecured and non-convertible demand loan (the “Loan”) from EquinoxGold in the amount of US$1.3 million, the proceeds of which will be used for working capital purposes and further optimization of the Mercedes Mine”. The amendment refers to an exemption of formal valuation requirement described on section 5.5(b) of Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (Mercedes, Sonora).

ON RESOURCES AND DEVELOPMENT

  • Vizsla Silver Corp. reported results from 13 new holes targeting the La Luisa vein on its Panuco project, in Sinaloa. Highlighted true-width intervals comprise 11.20 m @ 7.14 gpt Au, 229 gpt Ag 0.3% Pb, 1.6% Zn; 8.90 m @ 2.85 gpt Au, 61 gpt Ag, 0.1% Pb, 2.2% Zn (including 0.77 m @ 10.35 gpt Au, 98 gpt Ag, 0.4% Pb, 15.8% Zn); 7.70 m @ 1.90 gpt Au, 67 gpt Ag, 0.7% Pb, 0.3% Zn (including 0.54 m @ 12.35 gpt Au, 250 gpt Ag, 5.6% Pb, 10.4% Zn and 1.08 m @ 1.48 gpt Au, 171 gpt Ag, 1.6% Pb, 11.2% Zn); 5.00 m @ 2.49 gpt Au. 155 gpt Ag, 0.9% Pb, 4.5% Zn. 8.85 m @ 0.98 gpt Au, 67 gpt Ag, 0.1% Pb, 1.0% Zn; 1.16 m @ 1.12 gpt Au, 76 gpt Ag, 0.2% Pb, 14.9% Zn. To date Vizsla Silver has reported 33 holes from La Luisa outlining a mineralized footprint 700 m long, 400 m down dip and 3.07 m in width, averaging 175 gpt Ag, 3.40 gpt Au, 0.28 % Pb, 1.33 % Zn (or 449 gpt AgEq).
  • Prime Mining Corp. reported expansion drill results from Los Reyes project in Sinaloa. “This drilling targeted areas extending materially beyond the mineral resource envelope at the Z-T, Guadalupe and Central Zones” which are the ones with defined resources. Highlighted true width intervals comprise 20.50 m @ 3.16 gpt Au, 55 gpt Ag (including 4.0 m @ 9.71 gpt Au, 85 gpt Ag); 2.20 m @ 10.10 gpt Au, 264 gpt Ag (including 1.20 m @ 17.80 gpt Au, 437 gpt Ag); 0.95 m @ 18.20 gpt Au, 2,024 gpt Ag; 1.0 m @ 5.47 gpt Ag, 615 gpt Ag.
  • Silver Tiger Metals Inc. announced an updated Mineral Resource Estimate for its El Tigre project in Sonora. “A total of 482 drill holes (124,851 metres) and 3,160 surface and adit channel samples (6,473 metres) were used in the Mineral Resource Estimate”, which includes the South Zone In Pit, South Zone Out-of-Pit, North Zone Out-of-Pit, Vein (S & N) Total, Low Grade Stockpile and Tailings Zones. Indicated Resources comprise 46.4 M tonnes @ 0.39 gpt Au, 25 gpt Ag, 0.01% Cu, 0.03% Pb, 0.06% Zn, containing 575 K Oz Au, 37.2 M Oz Ag, 9.4 M Lb Cu, 35.5 M Lb Pb, 64.3 M Lb Zn. Inferred resources comprise 20.9 M tonnes @ 0.56 gpt Au, 78 gpt Ag, 0.04% Cu, 0.13% Pb, 0.22% Zn, containing 373 K Oz Au, 52.6 M Oz Ag, 18.1 M Lb Cu, 59.7 M Lb Pb, 103.4 M Lb Zn.
  • GoGold Resources Corp. released the updated preliminary economic assessment (PEA) and mineral resource estimate for its Los Ricos South project in Jalisco. The report foresees commodity prices of $23.75 per Oz Ag and $1,850 per Oz Au, an After-Tax (5%) net present value of US$458 M, an After-Tax IRR of 37%, and an 11-year mine life (LOM) producing 88 M Oz AgEq (47 M Oz Ag, 493 K Oz Au, 14 M Lb Cu), with initial capital costs of $148 M, expansion capital of $69 M and sustaining capital of $72 M during LOM, producing 8 M Oz AgEq per year at cash cost $8.15 per Oz AgEq and all-in sustaining costs of $9.02 per Oz AgEq. The new resource estimate envisages 11.1 M tonnes averaging 1.43 gpt Au, 151 gpt Ag, 0.11% Cu in the measured and indicated resources category and 1.4 M tonnes at 1.22 gpt Au, 120 gpt Ag, 0.28% Cu in the inferred category, containing 511 K Oz Au, 53.8 M Oz Ag, 27.3 M Lb Cu (1.26 Moz AuEq) and 54.1 K Oz Au, 5.3 M Oz Ag, 8.5 M Lb Cu (140.9 K Oz AuEq) respectively.
  • Gold Resource Corp. provided an update on expansion and infill diamond drilling on the Arista, Three sisters, Gloria and Switchback vein systems at its Don David mine in Oaxaca. Highlighted true width intervals comprise 5.63 m @ 1.87 gpt Au, 279 gpt Ag, 0.2% Cu, 0.9% Pb, 1.6% Zn; 6.49 m @ 1.33 gpt Au, 21 gpt Ag, 0.17% Cu, 0.4% Pb, 2.1% Zn; 6.13 m @ 0.32 gpt Au, 214 gpt Ag, 0.76% Cu, 4.3% Pb, 3.0% Zn; 4.87 m @ 0.09 gpt Au, 47 gpt Ag, 0.47% Cu, 1.1% Pb, 7.2% Zn; 2.49 m @ 0.96 gpt Au, 27 gpt Ag, 1.01% Cu, 1.1% Pb, 9.7% Zn; 3.46 m @ 0.24 gpt Au, 198 gpt Ag, 0.74% Cu, 0.6% Pb, 4.9% Zn; 6.33 m @ 0.14 gpt Au, 60 gpt Ag, 0.62% Cu, 0.1% Pb, 2.2% Zn; 2.62 m @ 1.93 gpt Au, 73 gpt Ag, 0.81% Cu, 1.6% Pb, 10.4% Zn; 6.56 m @ 1.06 gpt Au, 27 gpt Ag, 0.22% Cu, 0.7% Pb, 2.1% Zn; 6.49 m @ 0.11 gpt Au, 78 gpt Ag, 0.64% Cu, 1.5% Pb, 2.9% Zn. “Five underground diamond drill rigs are currently operating … more than 100 drill holes and 25,000 meters of core has been drilled year-to date in 2023…. These drill results will be incorporated into a 2023 resource estimate update”.
  • Alamos Gold Inc. released drilling results from the Puerto del Aire deposit and the Capulin target at its Mulatos property in Sonora. Puerto del Aire is a high-grade underground deposit adjacent to the Mulatos pit, not included in the mineral resources, and the Capulin target is four km east of the Mulatos pit. Highlighted true width core intervals comprise 7.05 m @ 41.46 gpt Au; 9.50 m @ 18.32 gpt Au; 9.45 m @ 13.62 gpt Au; 1.20 m @ 85.80 gpt Au; 17.60 m @ 5.58 gpt Au; 18.70 @3.30 gpt Au; 6.0 m @ 10.42 gpt Au; 15.10 m @ 3.86 gpt Au; 11.50 m @ 3.21 gpt Au; 9.45 m @ 3.84 gpt Au in Puerto del Aire, and core length intercepts of 120.85 m @ 2.73 gpt Au (including 29.05 m @ 9.31 gpt Au); 6.0 m @ 3.65 gpt Au; 8.80 m @ 0.99 gpt Au in the Capulin target. Three drill rigs are currently working on the Capulin target, two defining the limits of known mineralization and one testing along the 2 km long Capulin fault. The 2023 exploration budget has been increased to 24.5 M, including 50,000 m of drilling at Puerto del Aire and 24,000 m of drilling on several high priority targets including Refugio, Halcon West, Carricito, Bajios, and Cerro Pelon West.
  • Sierra Madre Gold and Silver Ltd. Updated on its exploration activities at the past producing La Guitarra mine in Estado de México. In February 2023 the company started a 2,000-scale geologic mapping program, delineating to date nearly 53 km of mineralized quartz veins, breccias and stockwork zones hosted in metasediments and andesites, with hundreds of old shafts, cross cuts, adits, and prospect pits having been located. “ The La Guitarra Mine is a permitted, past-producing underground mine which includes a 500 t/d processing facility that operated until mid-2018”.
  • Avino Silver & Gold Mines Ltd. released the results from four holes drilled on the deepest part of the Avino mine, in Durango. The known depth extent of the mineralization is of at least 750 m vertically, which is assessed as unusual for Mexican epithermal deposits. Highlighted true width intercepts comprise 44.40 m @ 0.21 gpt Au, 31 gpt Ag, 0.70% Cu (including 9.85 m @ 0.58 gpt Au, 42 gpt Ag, 1.10% Cu); 27.15 m @ 0.07 gpt Au, 36 gpt Ag, 0.39% Cu; 13.20 m @ 0.09 gpt Au, 59 gpt Ag, 0.47% Cu; 6.60 m @ 0.12 gpt Au, 27 gpt Ag, 0.92% Cu. “Four holes totalling 2,040 meters, were drilled below Level 17 in this drill campaign … The persistence of silver and copper grade continuity from surface down a plunge distance of over 1,100 metres with increasing copper grades supports the possibility of a deeper mineralized system which may be linked to a porphyry centre”.
  • Orex Minerals Inc. announced that hyperspectral alteration studies are now underway on the Coneto project in Durango, by JV partner Fresnillo PLC. “Both direct Corescan of selected drill core from silver and gold mineralized zones, plus a SpecTIR Survey covering district scale mapping, will be conducted. These methods aid in mineral identification through Short-Wave Infra-Red (SWIR) and Visible Near Infra-Red (VNIR) analysis”. The 4,800 hectares project displays low to intermediate sulfidation Au-Ag epithermal mineralization, with 38,613 m of drilling in 106 diamond holes.
  • Golden Minerals Co. filed an updated preliminary economic assessment (PEA) for the Velardeña property in Durango.

ON DEALS AND CORPORATE ISSUES

  • Golden Tag Resources Ltd. intends (subject to regulatory and shareholders approval) to change the company name from Golden Tag Resources Ltd. to Silver Storm Mining Inc. “(La Parrila, Durango).
  • Almaden Minerals Ltd. reported that the Mexican Federal Administrative Court granted a provisional injunction to Almaden “relating to the submission issued by Mexico’s Ministry of the Economy (“Economia”) to the district court (the “District Court”) which is overseeing the implementation of the February 2022 decision of Mexico’s Supreme Court (“SCJN”) requiring indigenous consultations prior to the granting of mineral titles to the Ixtaca project ……. It is expected that the Court will decide on the grant of a permanent injunction within the coming weeks, which if received would continue in effect until the Court has ruled on the revocation of the Economia Submission” (Ixtaca, Puebla).
  • Argonaut Gold Inc. reached an agreement with four local Ejidos to operate for three more years in the El Castillo and San Agustín properties in Durango.

ON SOCIAL RESPONSIBILITY

  • No relevant news.

On the image below: Silicified structure ridge on a project in the Sonoran Desert. Picture by Jorge Cirett.

The Mining and Exploration News in Mexico: Highlights on the Fifth Week of August 2023

/ Gambusino Prospector / Leave a comment

By Jorge Cirett                                             

During the 35th week of the year (August 27th to September 3rd, 2023), 21 companies working in Mexico posted news releases. Five companies reported on quarterly or half year 2023 results. Five companies informed on the opening or closing of private placements, one on the payment of dividends and one more on the extension of a credit facility.  One company announced results of a PEA on its property and one other is working to process a tailings polymetallic resource. A company reported high-grade drilling results from its property and one other updated on exploration activities. One company informed on its intention to acquire a porphyry copper project in Sonora, while one other updated on projects in several countries and its plans for Mexico. One royalty company informed on the indirect acquisition of an NSR from a mine in Mexico. ON MEXICO ISSUES, Xótchil Gálvez, pointed that the Mining Fund should return to mining communities. ON EXPLORATION, no relevant news. ON MINING, Impact Silver, Bear Creek Mining and Minera Alamos reported financial results for Q2 2023, and Mundoro reported first half 2023 results. ON FINANCING, Aztec Minerals (C$911.6 K), Colibri Resource, Regency Silver (C$1.5 M), Sonoro Gold (C$259.2 K) and Commander Resources ($ 346 K) informed on the opening or closing of financing rounds. Orla Mining extended its credit facility to up to $200 M and four years. Alamos Gold declared a quarterly dividend. ON RESOURCES AND DEVELOPMENT, Sonoro Gold announced a positive PEA on Cerro Caliche, Sonora. Luca Mining informed on evaluation plans to reprocess tailings at Campo Morado, Guerrero. Bear Creek Mining provided underground drilling results from Mercedes, in Sonora. Discovery Silver submitted the environmental impact assessment (MIA) for Cordero, in Chihuahua. Mammoth Resources provided an update on exploration activities at Tenoriba, in Chihuahua. ON DEALS AND CORPORATE ISSUES, Southern Empire Resources entered into an agreement with Cuprum Mining, upon which Southern can acquire 100% interest in the Suaqui Verde porphyry copper project in Sonora. Excellon Resources provided an update on its projects in different countries, including Mexico. Gold Royalty completed the acquisition of a 1.0% NSR on portions of the Cozamin mine production in Zacatecas. ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUES

  • Xóchitl Gálvez, opposition senator and likely to turn into a strong presidential candidate, points that the Mining Fund should return to mining communities. The fund was created for mining to contribute to the development of the communities where the work is realized, but was funneled into a broader basket to source pensions and scholarships with electoral aims by the current president.

ON EXPLORATION

  • No Relevant News.

ON MINING

  • Impact Silver Corp. announced financial results for the second quarter 2023, reporting revenue of $5.5 M. The average mill feed at Zacualpan, in Estado de Mexico, was 163 gpt Ag, where 35.7 K tonnes were processed to produce 155.7 K Oz Ag. During the quarter Impact closed the acquisition of the Plomosas mine in Chihuahua, where a major rehabilitation program was initiated. The company completed a $9.0 M non-brokered private placement, maintains a cash balance of $13.3 M and no long-term debt.
  • Orogen Royalties Inc. reported financial results for the second quarter of 2023, including some figures on its royalties from Mexican operations. The company holds a 2.0% net smelter return (NSR) royalty on the production of First Majestic’s Ermitaño mine in Sonora. Orogen’s share of production on the quarter was $1.18 M consisting on 435 Oz AuEq, resulting from the process of 213.9 K tonnes @ 3.12 gpt Au, 39 gpt Ag, which produced 20,073 Oz Au, 142 K Oz Ag.
  • Bear Creek Mining Corp. reported its financial results for Q2 2023. During the period, 121.5 K tonnes were mined at its Mercedes mine in Sonora, 125.1 K tonnes were processed @ 2.42 gpt Au, recovering 94.53% Au to produce 9,212 Oz Au, 39,827 Oz Ag, or 10,132 Oz AuEq at cash cost $1,337 per Oz AuEq and an AISC of $1,646 per Oz AuEq. “The Mercedes mine has been inconsistent in achieving the anticipated gold grades projected in the mine plans and geological models the Company inherited upon its acquisition of Mercedes in April 2022”. Mining costs have declined by 23% in recent months and are expected to continue to reduce in the coming months due to changes in mining methods. Higher grades are to be mined from areas close to current production.
  • Minera Alamos Inc. provided an operation update for Q2 2023 and some guidance on its operations on Q3. Strip ratios were maintained below 2:1 waste vs mineralized material during mining operations, with 25% of material averaging 1.06 gpt Au being crushed and 75% of material averaging 0.43 gpt Au being sent directly to the leach pads, for an average grade of 0.59 gpt Au in the leach pads. The company expects that the precipitation levels in 2023 will allow more normal mining and production plans. Overall pad capacity is to triple if constructive communications with SEMARNAT (Environmental regulator) are fruitful. A maiden resource estimate is expected in Q3, covering the primary mineralized zones surrounding the Nicho operations. Alamos had cash and cash equivalents of $8.27 M by the end of the period. Subsequent to quarter’s end, $2.57 M ($33.2 M pesos) of VAT were returned to the company by the Mexican revenue service (SAT).
  • Mundoro Capital Inc. reported financial results for the first half of 2023. In H1 2023 the company generated $1.46 M in fees and payments. At the end of the period Mundoro held $8.4 M in cash and cash equivalents (Camargo, Chihuahua).

ON FINANCING

  • Aztec Minerals Corp. closed the first tranche of its non-brokered private placement for gross proceeds of CAD$911.6 K. “Due to investor interest in the private placement, Aztec intends to increase the financing from the original stated amount of up to CAD$1 million to up to CAD$1.2 million” (Cervantes, Sonora).
  • Orla Mining Ltd. amended its existing US$150 M credit facility with the Bank of Nova Scotia, Bank of Montreal and Canadian Imperial Bank of Commerce. The facility stays at US$150 M, with the ability to increase to US$200 M, with a 4-year term (increasing it by two years) and an interest rate will be based on the term SOFR rate, plus an applicable margin ranging from 2.50% to 3.75% based on the company’s leverage ratio at the end of each fiscal quarter. “The Amended Credit Facility is payable in full at maturity and removes quarterly mandatory repayments required under the previous term facility” (Camino Rojo Oxides, Zacatecas).
  • Colibri Resource Corp. announced an extension to complete its previously announced non-brokered private placement by September 13, 2023. “The Company is offering up to 1,000 units, each unit being comprised of: (i) a US$1,000 principal amount of 10% unsecured convertible debenture (a “Debenture”) with a maturity date (“Maturity Date”) of 2 years from the date of issuance; and (ii) 5,416 common share purchase warrants of the Company …” (Evelyn, Sonora).
  • Regency Silver Corp. will be present at the 2023 Precious Metals Summit in Beaver Creek, Colorado. Regency has arranged a non-brokered private placement of up to CAD$1.5 M in gross proceeds (Dios Padre, Sonora).
  • Alamos Gold Inc. declared a quarterly dividend of US$0.025 per common share (Mulatos, Sonora).
  • Commander Resources Ltd. closed the non-brokered private placement announced on August 3, 2023, for total gross proceeds of $346 K (Pedro, Durango).
  • Sonoro Gold Corp. closed the final tranche of its previously announced non-brokered private placement for additional gross proceeds of C$259.2 K, accruing a total of C$2.26 M (Cerro Caliche, Sonora).

ON RESOURCES AND DEVELOPMENT

  • Sonoro Gold Corp. announced a positive preliminary economic assessment (PEA) for its Cerro Caliche project in Sonora. The scope is for nine years life of mine (LOM) 33,000 Oz AuEq per year operation to obtain 297,575 Oz AuEq on recoveries of 72% Au, 27% Ag, with a pre-Tax net present value (NPV) of US$71.4 M, a pre-Tax internal rate of return (IRR) of 59% and after-Tax NPV (at 5%) of US$47.7 M with an IRR of 45%. An initial CAPEX cost of US$15.5 M and sustaining capital of US$15.5 M are envisaged, to produce at cash cost US$1,295 per Oz AuEq and an AISC of US$1,395 per Oz AuEq with a payback period of 2.9 years.
  • Luca Mining Corp. announced the signing of a memorandum of understanding with EnviroGold Global Ltd. to process the tailings at Luca’s Campo Morado Mine in Guerrero. The scope of the project is to evaluate the reprocessing of 3.29 M tonnes @ 1.32% Zn, 0.3% Cu, 0.49% Pb, 1.57 gpt Au, 94 gpt Ag, and produce a PEA for the project. On a 2021 initial testwork with EnviroGold’s, a gold recovery of 60% was achieved. The aim of the project is to increase this gold recovery rate to levels reached by EnviroGold on the Hellyer project in Australia (also a volcanogenic massive sulfide deposit, as Campo Morado), where it achieved recoveries of 90% Au, 90% Ag by leach, and 91% Cu and 82% Zn reported to a pregnant solution suitable for subsequent recovery.
  • Bear Creek Mining Corp. provided results from underground definition and delineation drilling at its Mercedes mine in Sonora. “The Company has focused drilling on the Marianas, Rey de Oro, Diluvio and Lupita deposits, all of which are associated with near-term production; however, the results also hold significant implications for exploration upside”. Highlighted true width intercepts comprise 1.0 m @ 47.90 gpt Au, 39 gpt Ag; 5.2 m @ 62.59 gpt Au, 93 gpt Ag; 4.3 m @ 7.55 gpt Au, 28 gpt Ag; 4.4 m @ 3.53 gpt Au, 10 gpt Ag; 2.1 m @ 18.41 gpt Au, 11 gpt Ag in the Marianas zone, 1.4 m @ 21.00 gpt Au, 11 gpt Ag; 4.9 m @ 3.52 gpt Au, 53 gpt Ag; 0.9 m @ 29.30 gpt Au, 63 gpt Ag; 4.2 m @ 4.56 gpt Au, 71 gpt Ag in the Rey de Oro Zone, 0.8 m @ 22.4 gpt Au, 127 gpt Ag in the Diluvio zone and 3.4 m @ 5.46 gpt Au, 95 gpt Ag in the Lupita zone. Highlighted core-length intervals from the Diluvio zone comprise 6.7 m @ 3.24 gpt Au, 63 gpt Ag; 14.3 m @ 4.11 gpt Au, 54 gpt Ag; 6.1 m @ 3.54 gpt Au, 63 gpt Ag; 6.5 m @ 5.51 gpt Au, 45 gpt Ag; 5.1 m @ 7.11 gpt Au, 78 gpt Ag; 1.5 m @ 9.23 gpt Au, 34 gpt Ag.
  • Discovery Silver Corp. submitted for evaluation the environmental impact assessment (Manifestación de Impacto Ambiental, or MIA) for its Cordero project in Chihuahua. “The MIA is one of the principal permits required for the development of Cordero and encapsulates extensive social and environmental work programs completed by the Company’s team in Mexico since 2020 in parallel with multiple reviews by third-party consultants.”
  • Mammoth Resources Corp. provided an update on ongoing exploration activities at its Tenoriba property in Chihuahua. The objective is to evaluate how to produce a resource estimation and define the processes through which the precious metals can be recovered. These activities include: (1) metallurgical testing of oxide material from the 1.5 km by 0.5 km Carneritos area. Preliminary metallurgical tests have already been performed on material from the Masuparia area; (2) analysis of all geological information, including drill data, by an independent mineral resource modelling expert aiming for the distribution of drill holes required to produce a maiden NI 43-101 mineral resource; and (3) defining future drill hole locations upon which to achieve this mineral resource.

ON DEALS AND CORPORATE ISSUES             

  • Southern Empire Resources Corp. entered into an agreement with Cuprum Mining Corp. to acquire up to 100% in the share capital of Cuprum, and thereby on the Suaqui Verde copper project in Sonora. Southern can acquire 10% of Cuprum by paying C$500 K within 90 days and issuing 7.5 M shares of Southern to Cuprum shareholders. Another 10% can be acquired by paying C$250 K to Cuprum, issuing 7.5 M shares and incurring in C$750 K on exploration expenditures on or before 15 months of closing. An additional 10% can be acquired by paying $500 K and incurring in additional C$750 K in exploration on or before 30 months from closing. Additional 20% can be acquired by Southern by paying C$500 K and incurring additional C$750 K within 45 months of closing. Southern Empire can acquire an additional 50% in Cuprum by paying C$750 K and incurring in additional C$1 M (total of C$3.25 M) on or before 60 months of closing. A 2% NSR “may be payable” subsequent to commercial production. The project encompasses 1,952 hectares with oxide and secondarily enriched copper sulfide mineralization on a porphyry copper system. A resource defined with 106 historical RC and diamond holes contains 51.2 M tonnes @ 0.31% Cu in the indicated category.
  • Excellon Resources Inc. provided an update on its projects in USA, Germany and Mexico. “As the Platosa Mine was placed on care and maintenance in earlyQ4 2022, the Company is assessing its strategic options, including the potential sale of select properties or complete divestiture of the Mexico operations. The Company will provide further updates on the Mexico operations as necessary.” (Platosa, Durango).
  • Silver Tiger Metals Inc. announced the appointment of Francisco Albelais as Vice-President of Operations and Mr. Charles Spath as Vice-President of Technical Services. (El Tigre, Sonora).
  • Gold Royalty Corp. has completed the indirect acquisition of a 1.0% net smelter return (NSR) royalty on portions of the Cozamin Cu-Ag mine in Zacatecas, from Endeavour Silver Corp. Pursuant to the transaction, Gold Royalty indirectly acquired the royalty for US$7.5 M in cash consideration.

ON SOCIAL RESPONSIBILITY

  • No relevant news.

On the image below: Silicified structure ridge on a project in the Sonoran Desert. Picture by Jorge Cirett.

The Mining and Exploration News in Mexico: Highlights on the First Week of August 2023

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By Jorge Cirett                                             

During the 31st week of the year (July 31st to August 6th, 2023), 25 companies working in Mexico posted news releases. Five companies informed on exploration work at its properties and seven more reported second quarter 2023 results. Two companies informed on private placements, while one declared a dividend payment. Five companies informed on technical reports, updated mineral resources, drilling results, mining plans and mine preparations on their projects. One company sold the royalties in some properties and one other is reviewing exploration opportunities in South America. ON MEXICO ISSUES, one company made clear commitment to get projects beyond Mexico, the country new mining policies showing its might. The Union – Grupo Mexico conflict in Sombrerete is to be solved in Mexico, not under the T-MEC, according to the federal government. Income tax returns from the mining industry fell by 35% on the first semester 2023. ON EXPLORATION, in Sonora, Prismo Metals mobilized a drill rig to Los Pavitos; Silver Spruce Resources resumed work at Diamante. In Chihuahua, Kootenay Silver updated on work at Columba. In Sinaloa, Prismo Metals updated on the drilling at Palos Verdes. ON MINING, Fresnillo PLC, Starcore International Mines, Capstone Copper, Equinox Gold, First Majestic Silver, Torex Gold and Orla Mining released production results for Q2 2023. ON FINANCING, Goldgroup Mining issued shares on a convertible loan. First Majestic Silver declared the payment of a dividend per share. Colibri closed the first tranche of a private placement. ON RESOURCES AND DEVELOPMENT, SilverCrest Metals released a new technical report with updated mineral resources and a new mine plan for Las Chispas in Sonora. Impact Silver updated on work to refurbish the Plomosas mine in Chihuahua. GoGold Resources released drilling results from Los Ricos South in Jalisco. Discovery Silver released drilling results from the FS program at Cordero, in Chihuahua. Heliostar Metals reported on the re-scoping study at Ana Paula, in Guerrero. ON DEALS AND CORPORATE ISSUES, Endeavour Silver entered into an agreement to sell its royalty on the Cozamin property. Xali Gold is to review exploration opportunities in South America. ON SOCIAL RESPONSIBILITY, no relevant news. ON MEXICO ISSUES

  • Editor comments. One more company working exclusively in Mexico announced plans to look for projects in other countries. No one can say the policies imposed by the current administration are not producing the results sought, even if its full weight is to be felt in the years to come.
  •  The federal government directed that the labor conflict between Grupo Mexico and a Union (Sindicato Nacional de Trabajadores Mineros, Metalúrgicos, Siderúrgicos y Similares de la República Mexicana) in the Sombrerete mine in Zacatecas, has to be solved in Mexican courts, out of the T-MEC rapid response labor mechanism.
  • Income tax returns fell 34.6% year on year on the first semester of 2023, the biggest drop in 20 years. On VAT (IVA) and special tax on products and services (IEPS), the mining sector had refunds for $134 M ($2,275 M pesos) and $6.5 M ($110 M pesos) respectively.  

ON EXPLORATION

  • Kootenay Silver Inc. informed two of three surface access agreements needed have been now signed, and the third one is in the final negotiation stage at its Columba project in Chihuahua.
  • Prismo Metals Inc. announced the mobilization of a drill rig for the planned 2,500 m program to its Los Pavitos project in Sonora. Assays for the last four trenches dug at the project were published. Highlighted intervals comprise 1.0 m @ 3.98 gpt Au, 5 gpt Ag; 2.80 m @ 1.18 gpt Au, 16 gpt Ag. 
  • Prismo Metals Inc. updated on the drilling program at its Palos Verdes project in Sinaloa. Ten holes for a total of 2,035 m have been completed on the 2,500 m program, with the eleventh hole in progress and three holes remaining. On a second press release the company announced the expansion of the program by a joint committee by Prismo and Vizsla, to 3,600 m “in ten holes to be completed in two phases”.
  • Silver Dollar Resources Inc. submitted a drilling permit application for the next phase of drilling at the Nora project in Durango. “The geological setting is a Tertiary-aged volcanic flow-dome complex. Gold-silver mineralization is hosted within two structurally controlled epithermal veins, Candy and Nora…. Only 500 m of the potential 3-km strike of the Candy vein structure has been drill tested, and only to a depth of 250 m below surface”.
  • Colibri Resource Corp. and partner Silver Spruce Resources Inc. announced the resumption of field works at the Diamante project in Sonora. Stream sediment sampling, geological mapping and rock chip sampling are some of the planned activities.
  • Fresnillo PLC. provided its Q2-2023 production results. The Company produced over 14 M Oz Ag, 152,217 Oz Au, 13,994 tonnes Pb and 25,670 tonnes Zn from its operation in Fresnillo, Saucito and Juanicipio in Zacatecas, Cienega in Durango, Herradura and Nochebuena in Sonora, and San Julian in Chihuahua.
  •  Starcore International Mines Ltd. presented results for its fiscal year and quarter ending on April 30, 2023. During the quarter the company processed 56.8 K tonnes @ 1.45 gpt Au, 11.2 gpt Ag, recovering 86.1% Au, 48.3% Ag, to produce 2,300 Oz Au, 10 K Oz Ag at its San Martin mine in Queretaro. For the year, the company produced 10,000 Oz Au, 85.4 K Oz Ag. Mine operating cash cost was $1,611 and $1,535 per AuEq Oz respectively for the quarter and full year.
  • Capstone Copper Corp. reported financial results for the second quarter of 2023, including figures from its Mexican operations. At Cozamin, in Zacatecas, 6.6 K tonnes Cu were produced at cash cost $1.63 per Lb Cu.
  • Equinox Gold Corp. announced its second quarter 2023 financial and operating results, without disclosing figures per project.
  • First Majestic Silver Corp. announced unaudited consolidated financial results for the second quarter 2023. During the period the company produced 2.63 M Oz Ag, 40,658 Oz Au, or 5.97 M Oz AgEq.
  • Torex Gold Resources Inc. reported Q2 2023 and operational results. During the period, the company mined 11.77 M tonnes from the open pit (13,293 tpd), 174 K tonnes from underground (1,913 tpd) at the Limon Guajes mine in Guerrero, of which 1.21 M tonnes were processed to produce 107,507 Oz Au at cash cost $848 per Oz Au and an all-in sustaining cost of $1,308 per Oz Au. Torex maintains its 2023 guidance to produce 440 K to 470 K Oz Au. The quarter closed with net cash of $273.8 M.
  • Orla Mining Ltd. announced the results for the second quarter of 2023. At the Camino Rojo Oxide mine in Zacatecas, 29,058 Oz Au were produced at an AISC of $696 per Oz Au. The pit development is being hindered by SEMARNAT lateness to authorize permits. Cash balance at the end of the period was $114.5 M.   

ON FINANCING

  • Goldgroup Mining Inc. announced the issuance of 29.05 M shares upon conversion of the company’s outstanding convertible loan with a face value of $2.16 M (Cerro Prieto, Sonora).
  • First Majestic Silver Corp. declared a cash dividend of $0.0051 per common share for the second quarter of 2023 (San Dimas, Durango).
  • Colibri Resource Corp. closed the first tranche of the previously announced non-brokered private placement of “Units”, for gross proceeds of US$487 K. “Each Unit is comprised of: (i) US$1,000 principal amount of 10% secured convertible debentures (the “Debentures”) issued by the Company with a maturity date (“Maturity Date”) of 2 years from the date of issuance; and (ii) 5,416 common share purchase warrants of the Company” (Diamante, Sonora).

ON RESOURCES AND DEVELOPMENT

  • SilverCrest Metals Inc. announced results from an updated independent technical report for the Las Chispas operation in Sonora. The report describes a 1,200 tpd operation of ore averaging 4.02 gpt Au, 396.1 gpt Ag, recovering 98.0% Au, 97.0% Ag, to produce 57 K Oz Au, 5.5 M Oz Ag per year in an operation with a mine life (LOM) of 8 years, to generate a post-tax net present value of $549 M. Cash cost is estimated at $7.84 per Oz AgEq and an AISC of $11.98 per Oz AgEq. “The Mineral Resource Estimate model was updated to reflect: narrower veins located over a larger area, thus requiring increased underground development, increased constraints on geologic, statistical, and geostatistical modelling parameters resulting in reductions in resources mainly in Babicanora Main and Babicanora Norte Main veins and increased resources in the Babi Vista Vein, including the Babi Vista Splay. Additionally, there is an increase in the number of Mineral Resource veins and the veins are more widely dispersed. The Updated Inferred Mineral Resource Estimate is reduced from the 2021 FS due to conversion to M&I Mineral Resources and application of the same stricter constraints as applied to M&I Mineral Resources”.
  • Impact Silver Corp. provided an update on the recently acquired Plomosas mine in Chihuahua. The mill refurbishment is in the final stages, with testing and modification of the plant to start in late summer to ramp up production to the 200 tpd design capacity. The company has applied for an expansion of the current tailings pond while planning and permitting of the next one takes place. Refurbishment of ventilation, electrical and lighting systems are ongoing, and mine planning is being completed for 2023-2024. The current workforce is comprised by 70 company workers and 25 contract workers.
  • GoGold Resources Inc. announced drilling results from Los Ricos South project in Jalisco. The highlighted core length intercepts comprise 30.2 m @ 1.68 gpt Au, 278 gpt Ag (including 9.70 m @ 4.54 gpt Au, 769 gpt Ag); 34.8 m @ 1.37 gpt Au, 132 gpt Ag (including 7.0 m @ 4.68 gpt Au, 440 gpt Ag); 32.70 m @ 1.19 gpt Au, 124 gpt Ag; 11.7 m @ 0.93 gpt Au, 387 gpt Ag (including 1.40 m @ 5.36 gpt Au, 2,780 gpt Ag); 23.10 m @ 0.80 gpt Au, 143 gpt Ag; 28.10 m @ 0.71 gpt Au, 129 gpt Ag. “The Main area drilling campaign’s purposes is to better define the very high-grade portions of the current deposit that may be amenable to bulk underground mining…… It is expected that these holes will be included in an updated Resource to be released by the end of the summer”.
  • Discovery Silver Corp. released results from feasibility study (FS) drilling at its Cordero project in Chihuahua. Highlighted core length intervals of the reserve and expansion drilling comprise 62.10 m @ 0.25 gpt Au, 48 gpt Ag, 0.6% Pb, 0.6% Zn; 45.0 m @ 0.24 gpt Au, 66 gpt Ag, 0.5% Pb, 0.7% Zn; 51.7 m @ 0.19 gpt Au, 51 gpt Ag, 0.6% Pb, 0.9% Zn; 15.10 m @ 0.08 gpt Au, 278 gpt Ag, 3.1% Pb, 2.9% Zn; 12.4 m @ 0.19 gpt Au, 168 gpt Ag, 1.4% Pb, 3.1% Zn; 37.4 m @ 0.09 gpt Au, 79 gpt Ag, 1.1% Pb, 1.5% Zn; 38.5 m @ 0.17 gpt Au, 104 gpt Ag, 0.5% Pb, 0.3% Zn; 82.1 m @ 0.03 gpt Au, 33 gpt Ag, 0.6% Pb, 0.9% Zn. Discovery has now drilled 52,000 m in 164 holes as part of the FS drill program. Incoming “property-wide drilling will initially target large chargeability anomalies in the Sanson area (approximately 3.5 km to the northeast of Cordero) and skarn targets at depth in the northeast of the deposit. Currently, 9,000m of drilling is planned in 2023”.
  • Heliostar Metals Ltd. reported progress on re-scoping of the current pre-feasibility study (PFS) at the Ana Paula project in Guerrero. “The Company is evaluating three underground mining scenarios, with different cut-off grades and mining rates, that are being advanced for more detailed evaluation and comparison…… The Company will refine the options upon receipt of an updated resource model and metallurgical program results, both of which rely on drilling completed in 2023. Metallurgical results will be reported in October and an updated resource model is expected in November 2023”.

ON DEALS AND CORPORATE ISSUES              

  • Endeavour Silver Corp. entered into an agreement with Gold Royalty Corp. to sell all of its interest in a 1% Cozamin Royalty for a total consideration of US$7.5 M, payable in cash. “The Royalty applies to two concessions (Calicanto and Vicochea) on Capstone’s Cozamin copper-silver mine, located 3.6 kilometres north-northwest of Zacatecas City in state of Zacatecas, Mexico”.
  • Xali Gold Corp. has decided to review exploration opportunities in South America, including Peru. The company updated on its Mexican projects: Exploration at El Oro in Estado de Mexico has been put on hold, whilst Sun River Gold (who has an option in the El Oro mine tailings) has been advancing permitting and providing some cash flow through advances on the Net Profit Interest due once in production. “Negotiations are also underway with Mexican groups regarding both upgrades and financing commitments to make the San Dieguito de Arriba (“SDA”) Plant in Western Mexico fully operational. Xali Gold terminated the previously announced agreement (see January 18, 2023 News Release) with Minera Cinco Reales S.A. de C.V. (“MCR”) earlier this month due to MCR’s lack of progress”.

ON SOCIAL RESPONSIBILITY

  • Aura Minerals Inc. released its 2022 sustainability report, with a 62% reduction in frequency rates of accidents, 92% of water recycling and establishing a decarbonization plan with the goal of reducing GHG emissions by 5% from 2020 levels by 2023.

On the image below: Silicified vein ridges on a project in the Sonoran Desert. Picture by Jorge Cirett.