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 Third Week of August, 2021

By Jorge Cirett

During the 33rd week of the year (August 16th to August 22nd, 2021), at least 22 press releases were announced by companies working in Mexico. To note, four companies posted exploration advances on their properties, four posted on mining/quarterly reports, two on mining issues, four on financing or shares  and five more on project development or resource definition and one more on a property acquisition. ON MEXICO ISSUES, No relevant news. ON EXPLORATION, in Sonora, Aloro Mining informed on continuation of drilling at Los Venados. In Chihuahua, Radius Gold announced one more drilling campaign at Amalia. In Sinaloa, Vizsla Silver updated on exploration at Panuco. In Nayarit, Xali Gold submitted drilling applications for El Dorado.    ON MINING, Americas Gold and Silver, Prime Mining, First Majestic Silver, and Impact Silver presented second quarter 2021 reports. Mexus Gold shipped its first activated carbon. Gold Resource halted activities due to increase in COVID cases among its workforce. ON FINANCING, Candelaria Mining will not complete the proposed private placement. Galore Resources is to extend the expiry date of some warrants. Kootenay Silver is to spin-out its Canadian assets into another company. Magna Gold closed the previously announced private placement for C$10 M. ON RESOURCES AND DEVELOPMENT, Sierra Metals announced a 10,000 tpd PEA for its Bolivar mine in Chihuahua. Fabled Silver Gold released more results from drilling at Santa Maria. Excellon Resources released high grade Ag-Pb-Zn drilling results from Platosa. GoGold Resources informed on results of drilling at the Casados deposit at Los Ricos project. Sonoro Gold reported results of metallurgical tests at Cerro Caliche.  ON DEALS AND CORPORATE ISSUES, Starcore International Mines acquired the Tecouitla claims in Sonora. ON SOCIAL RESPONSIBILITY, No relevant news.

ON MEXICO ISSUES

  • No relevant news.

ON EXPLORATION

  • Xali Gold Corp. informed exploration permit applications have been submitted for El Dorado project in Nayarit. The plus 2,000 m program envisaged will test potential lateral extensions to high-grade zones to better define plunging mineralization shoots, and collection of a bulk sample from El Hundido mine.
  • Radius Gold Inc. announced that the phase five drilling campaign has commenced at its Amalia project in Chihuahua. Pan American Silver Corp., the project operator plans to deploy a second rig to test El Cuervo target.
  • Aloro Mining Corp. informed that Alamos Gold Inc. is to resume the reconnaissance drill program on the Los Venados claims in Sonora. Alamos has already exceeded its first year exploration commitment; the current program is focused on outcropping low sulfidation epithermal mineralization.
  • Vizsla Silver Corp. provided an update on its Panuco project in Sinaloa. Due to the current rise in Covid cases in Sinaloa, Vizsla will keep the current pause in activities at the property until the end of the month, and then gradually increase activities through September. Resource drilling is being done at Napoleon (950 x 350 m area) and Tajitos (550 m x 300 m area), exploration drilling is testing the Napoleon, Cinco Señores, Cordon de Oro and Animas Corridors. Preliminary metallurgical testing is being done on Napoleon vein material, and geotechnical and hydrogeological studies are being conducted. Drilling programmed for the remainder of 2021 comprises 35,000 m.  

ON MINING

  • Americas Gold and Silver Corp. reported second quarter 2021 consolidated financial and operational results. For Mexico, the company reported that it “signed an agreement with the Mexican Ministries of Economy, Interior and Labour along with union representatives committing to a re‐opening at the Cosalá Operations.    The agreement contemplates immediate right to possession of the property with joint inspections coordinated by the Ministry of Labor, so that the mine and mill can re‐start operations in a safe and sustainable manner”. (Note from writer. – The mine was paralyzed by a dispute between two unions over a year ago, with strong political connotations).
  • Prime Mining Corp. reported its operational and financial results for the fourth quarter of fiscal year 2021, end in April 2021. During April the company completed a private placement for gross proceeds of CAN$28.75 M. Also in the period, drilling at Los Reyes in Sinaloa intersected up to 20.1 m @ 3.25 gpt Au, 389 gpt Ag, 3.8 m @ 3.69 gpt Au, 305 gpt Ag, 4.5 m @ 8.95 gpt Au, 74 gpt Ag; 18.7 m @ 1.96 gpt Au, 63 gpt Ag; 39.0 m @ 0.7 gpt Au, 29 gpt Ag. Cash at the end of the period stood at Can$32 M.
  • First Majestic Silver Corp. announced the consolidated financial results for the second quarter 2021. During the period the company processed 826.2 K tonnes, to produce 3.27 M Oz Ag, or 6.43 Oz AgEq at $13.89 per Oz AgEq and an AISC of $19.42 per Oz AgEq. In Mexico, the production came from San Dimas, in Durango, La Encantada, in Coahuila, and Santa Elena, in Sonora.
  • Mexus Gold US. confirmed the first shipment of activated carbon from its Santa Elena mining operation in Sonora (Not to mistake with First Majestic’s Santa Elena mine, also in Sonora).
  • Gold Resource Corp. informed that as result of a steep climb in COVID-19 infections, the company is reducing its activities at the Don David mine in Oaxaca. The measure is to last for at least ten days. “The operations will continue with those employees and contractors who have agreed to stay in the camp for periods longer than the usual rotation to create a bubble”.
  • Impact Silver Corp. announced its financial and operational results for the second quarter 2021. The cash balance at the end of the quarter was $22.4 M. The mill processed 37.8 K tonnes @ 147 gpt Ag to produce 150.3 K Oz Ag. Some results of its ongoing 10,000 m drilling campaign include 9.8 m @ 211 gpt Ag and 13.85 m @ 186 gpt Ag.

ON FINANCING

  • Candelaria Mining Corp. informed that the company will not be proceeding with the proposed brokered private placement previously announced (Pinos, Zacatecas, Guerrero).
  • Galore Resources Inc. proposed to extend the expiry date of 5.6 M share purchase warrants from September 2021 to September 2024 (Dos Santos, Zacatecas).
  • Kootenay Silver Inc. board approved a spin-out of 80% of its Canadian exploration assets. Once the arrangement becomes effective, Kootenay shareholders will own shares in two public companies, one focusing in Mexico and the other in Canada (Columba, Chihuahua).
  • Magna Gold Corp. closed the previously announced private placement of C$10 M convertible debentures (San Francisco, Sonora).

ON RESOURCES AND DEVELOPMENT

  • Sierra Metals Inc. announced a 10 K tonnes per day positive preliminary economic assessment (PEA) to include iron ore production at its Bolivar mine in Chihuahua. The report envisages an updated after-tax net present value (NPV) of US$361 M at an 8% discount rate, an IRR of 27.9%, net after-tax cash flow of US$650 M with a life of mine (LOM) copper grade of 0.72% and iron ore at 13.5%, an operating cost of US$25.62/tonne and US$1.50 per Lb CuEq, to produce 55 M Lb Cu in 14 years. Current indicated resources stand at 19.4 M tonnes @ 0.77% Cu, 15.1 gpt Ag, 0.21 gpt Au, 13.8% Fe, containing 149.1 K tonnes Cu, 9.4 M Oz Ag, 127.8 K Oz Au, and inferred resources at 21.4 M tonnes @ 0.78% Cu, 14.2 gpt Ag, 0.21 gpt Au, containing 167.1 K tonnes Cu, 9.8 M Oz Ag, 145.6 K Oz Au.
  • Fabled Silver Gold Corp. announced more results from surface drilling at its Santa Maria project in Chihuahua. Highlighted core length intervals comprise 0.85 m @ 0.98 gpt Au, 10 gpt Ag; 0.80 m @ 0.09 gpt Au, 63 gpt Ag, 0.3% Pb, 0.6% Zn; 20.10 m @ 0.18 gpt Au, 35 gpt Ag, 1.1% Pb, 0.7% Zn, 0.09% Cu (including 5.90 m @ 0.30 gpt Au, 97 gpt Ag, 3.3% Pb, 1.5% Zn, 0.25% Cu).
  • Excellon Resources Inc. released results from underground drilling at Platosa, in Durango. Some of the highlighted core length intervals: 3.0 m @ 227 gpt Ag, 2.3% Pb, 2.0% Zn, 0.1 gpt Au; 1.3 m @ 360 gpt Ag, 10.1% Pb, 10.2% Zn; 1.3 m @ 692 gpt Ag, 9.3% Pb, 6.3% Zn; 1.2 m @ 544 gpt Ag, 5.9% Pb, 3.9% Zn; 1.6 m @ 1,647 gpt Ag, 12.3% Pb, 11.6% Zn, 0.1gpt Au; 5.2 m @ 1,051 gpt Ag, 12.1% Pb, 13.1% Zn, 0.2 gpt Au (including 2.3 m @ 1,985 gpt Ag, 22.8% Pb, 17.2% Zn); 2.5 m @ 784 gpt Ag, 7.7% Pb, 13.9% Zn, 0.3 gpt Au; 3.1 m @ 581 gpt Ag, 5.7% Pb, 11.4% Zn, 0.1 gpt Au; 1.4 m @ 1,050 gpt Ag, 3.4 % Pb, 2.0% Zn; 3.1 m @ 289 gpt Ag, 2.2% Pb, 3.7% Zn. “Drilling from underground continues to define and expand known mineralization ahead of production at the 623, NE-1 and NE-1S Mantos. Most significantly, drilling into the 623 and NE-1 Mantos continues to improve understanding and confidence, and extend mineralization in these areas”.
  • GoGold Resources Inc. informed on results from seven drill holes at the Casados deposit at the Los Ricos North project in Jalisco. Highlighted core length intervals: 19.0 m @ 0.54 gpt Au, 131 gpt Ag (including 1.3 m @ 5.16 gpt Au, 1,319 gpt Ag); 9.5 m @ 0.50 gpt Au, 233 gpt Ag; 41.6 m @ 1.25 gpt Au, 218 gpt Ag (including 8.9 m @ 4.71 gpt Au, 698 gpt Ag); 19.2 m @ 0.53 gpt Au, 185 gpt Ag (including 8.5 m @ 1.14 gpt Au, 594 gpt Ag); 8.2 m @ 0.26 gpt Au, 82 gpt Ag. “The Casados Veins strike nearly E-W, dips 45o to the north and is hosted in andesitic tuffs and is exposed on surface for about 400 metres along strike…… A zone of silicification up to 50 metres wide envelopes the vein and this resistant outcrop forms a steep ridge along the strike of the vein, particularly on the north or hanging wall side”.
  • Sonoro Gold Corp. reported results from metallurgical tests on mineralized material from Cerro Caliche in Sonora. The column metallurgical test returned an average of 74% recovery of gold for the 80% minus 12.5 mm feed material. The 4.7 tonnes sample was obtained from ten PQ (8.5 cm diameter) holes totaling 428 lineal meters. Little to no sulfur and organic carbon were observed on the testing. “There were no obvious variations in gold recovery related to ore zone or material type (vein breccia vs. stock work)”.

ON DEALS AND CORPORATE ISSUES

  • Starcore International Mines Ltd. informed on the acquisition of the 3,088 hectares Tecoutila claims from Minera Tecouitla, S.A. de C.V.. Previous exploration in the property reported nine veins with lengths of up to 2.1 Km, widths of 0.5 to 1.1 m and grades of up to 10.30 gpt Au, 241 gpt Ag.

ON SOCIAL RESPONSIBILITY

  • No relevant news.

On the image below:  Workings and vein trace on a project in northern Sonora. Picture by Jorge Cirett.

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 First Week of July, 2021.

Flow Banded Rhyolite Dome

By Miguel A Heredia

During the 26th week of the year (June 28th to July 04th, 2021), at least 25 press releases were announced by companies working in Mexico and 5 news published by the media, with nine disclosing deals and corporate issues, seven announcing financial rounds, three reporting on resources and developments, three informing on exploration results, three communicating production and financial results, three commenting on Mexican issues, and two discussing social issues.  ON MEXICO ISSUES, The Ministry of the Environment and Natural Resources (SEMARNAT) authorized the expansion of the El Boleo mine in Baja California. Guanajuato Silver announced that it will restart activities at its El Cubo mine in October 2021. Mexico was the world’s leading silver producer in 2020. ON EXPLORATION, In Sonora, Silver Spruce announced it has contracted regional ASTER and LANDSAT spectral analysis on their Mezquite, Jackie and Diamante mining properties. In Chihuahua, Reyna Silver announced that it has started a 10,000m drilling program at its Batopilas project, and reported that a second drill rig has been added to speed up the completion of the current drilling  program conducted at its Guigui project.  ON MINING, Consolidated Zinc provided an operation update of its Plomosas mine in Chihuahua. Magna Gold announced it has achieved full-scale commercial production at its San Francisco mine in Sonora. Mexus Gold announced that it has sold gold doré as a result of recent production at its Santa Elena mine in Sonora.  ON FINANCING, Altaley restructured a USD $$26,027,240 debt with Trafigura and Nyrstar (Campo Morado mine, Guerrero). Comet issued 5M of fully paid ordinary shares (Santa Teresa property, Baja California Norte).  Defiance Silver granted stock options to certain directors and officers (San Acacio property, Zacatecas). Orla subscribed a non-brokered prospectus financing for gross proceeds of USD $35M (Camino Rojo project, Zacatecas). Silver Wolf received approval from OTC Markets Group Inc. to commence trading on the OTCQB Venture Market under the ticker symbol “GYRRF” (Ana Maria and El Laberinto properties in Durango). Silver Bull closed a private placement for gross proceeds of CAD $500K (Sierra Mojada project, Coahuila). Vista Gold received a final payment for $1M from Prime Mining to complete the agreement on the Guadalupe de Los Reyes property in Sinaloa.  ON RESOURCES AND DEVELOPMENT, Chesapeake drilled five core drill holes at its Metates project in Durango to provide core for a comprehensive metallurgical testwork program and to confirm the higher-grade nature of the Metates intrusive hosted mineralization. Prime Mining reported new results from its ongoing drill program conducted at its Los Reyes project in Sinaloa. Silver Tiger released results from its ongoing drilling program conducted at its El Tigre project in Sonora. ON DEALS AND CORPORATE ISSUES, Capstone published its 2020 sustainability report (Cozamine mine, Zacatecas). Discovery Silver presented results of its annual general meeting of shareholders (Cordero project, Chihuahua). Fortuna and Roxgold completed its previously announced business combination (San Jose mine, Oaxaca). GoGold presented its first sustainability report (Los Ricos project, Jalisco). Gold79 announced results from its annual general meeting of shareholders (Taviche project, Oaxaca). GR Silver appointed its Chairman of the Board of Directors (Plomosas project, Sinaloa).  Maverix acquired royalty portfolio from Pan American Silver, including Hernandez property in Sonora.  Sonoro presented results from its annual general meeting of shareholders (Cerro Caliche project, Sonora).  ON SOCIAL RESPONSIBILITY, The company Minera Media Luna (MML), a subsidiary of Torex Gold Resources, convened the second edition of the “Enchulemos Juntos Nuestra Comunidad” (let’s improve our community together) program in the town of Nuevo Balsas, Guerrero. The Secretary of Tourism, Eduardo Yarto delivered two S stamps to Fresnillo plc, after it concluded its processes of renewal of procedures within its facilities to implement good sustainable practices.

ON MEXICO ISSUES

  • The Ministry of the Environment and Natural Resources (SEMARNAT) approved on a conditional basis the expansion of the Environmental Impact Manifestation (MIA) requested by Minera y Metalúrgica del Boleo for the exploitation of copper, cobalt and zinc in 446 hectares for 16 years in the municipality of Mulegé, in Baja California. 2,481 participants representing 89% voted In favor of the expansion.
  • Guanajuato Silver Company Ltd., announced that it will restart activities at its El Cubo mine, Guanajuato in October 2021, which is expected to employ more than 200 miners in the capital, with priority in hiring those who were fired in the closure two years ago.
  • Mexico was the world’s leading silver producer in 2020 maintained the leadership in silver production on a global scale in 2020, with 5,541M tonnes. The Mexican mining company Fresnillo plc owned by Grupo Bal and linked to the Baillères family, is the largest company primary silver producer in the world.

ON EXPLORATION

  • Silver Spruce Resources Inc., announced it has contracted Strategic Consultants IGIS for a regional ASTER and LANDSAT spectral analysis on their Mezquite, Jackie and Diamante mining properties in Sonora. This study will help to understand the structural and lithological controls in a regional context and provide additional detail on the mineral by mineral distribution over each of the properties. It also will help to outline alteration pattern for enhanced target definition in each of the mining properties.
  • Reyna Silver Corp., announced that it has started a 10,000m drilling program at its Batopilas project in Chihuahua. The program is focused on testing targets identified in the spring of 2021 exploration campaign, which discovered multiple extensions to the 30 known veins in the district, of which two new veins returned high-grade values up to 42,302 g/t Ag and 210.4 g/t Au. The company also announced that a second drill rig has been added to its Guigui project in the Santa Eulalia mining district in Chihuahua to extend and speed up the completion of the ongoing drilling program. The company has completed 8,000m of the 12,000m planned and this second rig will allow to speed up the completion of the entire Phase 1 drilling by the end of July, 2021. Results of the Phase 1 drilling campaign will be released soon after.

ON MINING

  • Consolidated Zinc Limited provided an operation update of its Plomosas mine in Chihuahua. The company announced that it processed 3,958 tonnes of ore in May, 2021 for 719 tonnes of zinc concentrates and 184 tonnes of lead concentrates at its Plomosas and Aldama plants in Chihuahua. The company intends to continue processing through both plants until ore stockpiles are depleted and the Plomosas plant sustains the targeted 4,500tpm process rate.
  • Magna Gold Corp., announced it has achieved full-scale commercial production at its San Francisco mine in Sonora. Magna is on track to achieve its earlier stated 2021 guidance of 55K-65K Oz Au production, since it has completed the necessary pre-stripping and substantially lowered the mine strip ratio from ~8:1 to ~3:1. At San Francisco, the company anticipates a production run rate of ~6K Oz Au/month in Q3 and looks to exit the year at a run rate of ~7.5K Oz Au/month.
  • Mexus Gold US announced that it has sold gold doré as a result of recent production at its Santa Elena mine in Sonora. The sales netted the company $24K. “The company is in the process of shipping activated carbon to the U.S. for processing. It is believed that this material contains up to 75 OZ Au.  Mexus is also adding liner to the existing heap leach pad which will allow for increased production. Material currently being mined continues to test in the 5.66g/t Au range”.

ON FINANCING

  • Altaley Mining Corporation restructured a USD $26,027,240 debt with Trafigura Mexico S.A. de C.V., and Nyrstar Canada (Holdings) Ltd.  Terms of the total debt restructured was USD $14,720,840 on the Tahuehueto project in Durango for a term of 32 months, an London interbank offered interest rate (LIBOR) of 6% (1 year), and a grace period of 8 months; USD $4,024,678 on the Campo Morado mine in Guerrero for a term of 26 months, a LIBOR of 5% (3 months), and a grace period of 8 months; and USD $7,281,722 on the Campo Morado mine in Guerrero for a term of 26 months and a LIBOR of 10%.
  • Comet Resources Ltd., issued 5M of fully paid ordinary shares upon the exercise of unlisted options exercisable at $0.02 each on or before 30 June 2021.  (Santa Teresa property, Baja California Norte).
  • Defiance Silver Corp., granted stock options to certain directors and officers to purchase an aggregate of 1.425M of common shares at an exercise price of $0.90. The options are exercisable for a ten-year term expiring June 30, 2031 (San Acacio property, Zacatecas).
  • Orla Mining Ltd., subscribed a non-brokered prospectus financing for gross proceeds of USD $35M, consisting of 9,085,263 common shares priced at CAD $4.75 per common share. Part of the net proceeds will be used for development activities at its Camino Rojo Oxide Gold project in Zacatecas. The offering is expected to close on or about July 14, 2021.
  • Silver Wolf Exploration Ltd., received approval from OTC Markets Group Inc. to commence trading on the OTCQB Venture Market under the ticker symbol “GYRRF” (Ana Maria and El Laberinto properties in Durango).
  • Silver Bull Resources Inc., closed a private placement for gross proceeds of CAD $500K. Net proceeds of the private placement will be used by Silver Bull for general working capital purposes   (Sierra Mojada project, Coahuila).
  • Vista Gold Corp., received a final payment for $1M from Prime Mining Corp. to complete the agreement on the Guadalupe de Los Reyes property in Sinaloa. With this $1.0M payment, Vista has no remaining right to be granted the royalties and back-in rights.

ON RESOURCES AND DEVELOPMENT

  • Chesapeake Gold Corp., drilled five core drill holes at its Metates project in Durango to provide core for a comprehensive metallurgical testwork program and to confirm the higher-grade nature of the Metates intrusive hosted mineralization. Significant drill intercepts were encountered in hole CKG21-086 with 1.15 g/t Au and 49 g/t Ag (1.80 g/t AuEq or 135 g/t AgEq) over a true width (TW) of 432m, including 1.21 g(t Au and 417 g/t Ag (6.77 g/t AuEq or 508 g/t AgEq) over a TW of 9m, including 2.49 g/t Au and 22 g/t Ag (2.78 g/t AuEq or 20+9 g/t AgEq) over a TW of 69m, and including 2.13 g/t Au and 9 g/t Ag (2.25 g/t AuEq or 170 g/t AgEq) over a TW of 57m; hole CKG21-085 with 1.13 g/t Au and 29 g/t Ag (1.53 g/t AuEq or 114 g/t AgEq) over a TW of 282m, including 1.34 g/t Au and 32 g/t Ag (1.76 g/t AuEq or 132 g/t AgEq) over a TW of 150m; and hole CKG21-084 with 1.06 g/t Au and 17 g/t Ag (1.29 g/t AuEq or 97 g/t AgEq) over a TW of 135m, plus 0.86 g/t Au and 11 g/t Ag (1.01 g/t AuEq or 75 g/t AgEq) over a TW of 90m.
  • Prime Mining Corp., reported new results from its ongoing drill program conducted at its Los Reyes project in Sinaloa. The most significant drill intercepts were encountered in hole 21Mina-02 with 4.44 g/t Au and 1,060 g/t Ag over an estimated true width (ETW) of 4.8m, including 6.62 g/t Au and 1,398 g/t Ag over an ETW of 2m, including 6.3 g/t Au and 1,881 g/t Ag over an ETW of 1.2m; hole 21Mina-05 with 3,243 g/t Ag over an ETW of 0.74m, plus 1.45 g/t Au and 29 g/t Ag over an ETW of 1.85m; and hole 21Mina-06 with 1.72 g/t Au and 30 g/t Ag over an ETW of 3.20m.  These results are from six holes completed at Mina Area during phase I drilling. To date, 15,000m Phase I is complete and the 30,000m Phase 2 program has been started.
  • Silver Tiger Metals Inc., released results from its ongoing drilling program conducted on the Sooy Vein at its El Tigre project in Sonora. Highlights include hole ET21-233 with 0.13 g/t Au, 491 g/t Ag, 0.08% Pb, and 0.01% Zn (510 g/t AgEq) over 0.5m, plus  0.25 g/t Au, 2,041 g/t Ag, 0.65% Cu, 1.2% Pb, and 3.6% Zn (2,271 g/t AgEq), including 4,048 g/t Ag, 0.45 g/t Au, 1.31% Cu, 0.6% Pb, and 7.3% Zn (4,461 g/t AgEq) over 0.5m; hole ET21-230 with 0.15 g/t Au, 704 g/t Ag, 0.14% Cu, 0.05% Zn (731 g/t AgEq) over 0.5m, plus 0.12 g/t Au, 193 g/t Ag, 0.09% Cu, 0.03% Pb, and 0.15 % Zn (217 g/t AgEq) over 3m, including 0.2 g/t Au, 1,080 g/t Ag, 0.55% Cu, 0.1% Pb, and 0.75% Zn (1,176 g/t AgEq) over 0.5m, plus 0.28 g/t Au, 199 g/t Ag, 0.06% Cu, 0.2% Pb, and 0.3% Zn (241 g/t AgEq) over 0.5, plus 0.41 g/t Au, 161 g/t Ag, 0.04% Cu, 0.2% Pn, and 0.4% Zn (214 g/t AgEq) over 0.5m; and hole ET21-229 with 0.13 g/t Au, 63 g/t Ag, 0.21% Cu, 0.8% Pb, and 1.6% Zn (165 g/t AgEq) over 13.5m, including 0.11 g/t Au, 83 g/t Ag, 0.27% Cu, 1% Pb, and 2% Zn (209 g/t AgEq) over 9.9m, including 0.21 g/t Au, 114 g/t Ag, 0.38% Cu, 3.7% Pb, and 8.7% Zn (542 g/t AgEq) over 1.8m.

ON DEALS AND CORPORATE ISSUES

  • Capstone Mining Corp., published its 2020 sustainability report.  (Cozamine mine, Zacatecas)
  • Discovery Silver Corp. presented results of voting at its annual general meeting of shareholders (Cordero project, Chihuahua).
  • Fortuna Silver Mines Inc., and Roxgold Inc., completed its previously announced business combination to create a global premier growth-oriented intermediate gold and silver producer (San Jose mine, Oaxaca).
  • GoGold Resources Inc., presented its first sustainability report that sets out the company’s priorities with respect to its environmental, social and governance (“ESG”) practices (Los Ricos project, Jalisco).
  • Gold79 Mines Ltd., announced results from its annual general meeting of shareholders (Taviche project, Oaxaca).
  • GR Silver Mining Ltd., appointed its Chairman of the Board of Directors (Plomosas project, Sinaloa).
  • Maverix Metals Inc., acquired royalty portfolio from Pan American Silver, including Hernandez property in Sonora. The Hernandez property, currently on exploration, is owned by First Majestic and includes a 2.5% NSR.
  • Sonoro Gold Corp., presented results from its annual general meeting of shareholders (Cerro Caliche project, Sonora). 

ON SOCIAL RESPONSIBILITY

  • Minera Media Luna (MML), a subsidiary of Torex Gold Resources, convened the second edition of the “Enchulemos Juntos Nuestra Comunidad” (let’s improve our community together) program in the town of Nuevo Balsas, Guerrero. During the cleaning day, about 300 people participated, including contractors, residents and collaborators of the mining company, remodeling four public spaces: the vehicular roundabout on Gerardo Reyes Norte Street, the camellones on that same street, the sports area in the southern part and the perimeter fencing of the downtown court. The investment of the work done amounted to MXP $1.3M. Members of the Public and Community Relations areas of MML, the collaborators of 11 contractor companies, members of the Participatory Community Development Committee (CODECOP) and residents of Nuevo Balsas cleaned and reforested green areas, painted fences and garrisons, and assisted in various activities that together aim to maintain the program to improve public spaces that the mining company began last year. The effort achieved the painting of 2,300 meters of trimmings, the planting of 90 trees, the collection of five tons of garbage, and the painting of 300 square meters of fences.
  • The Secretary of Tourism in Zacatecas, Eduardo Yarto delivered two S stamps to Fresnillo plc, after it concluded its processes of renewal of procedures within its facilities to implement good sustainable practices. The Secretary underlined the disposition of Fresnillo plc, with the renewal of the certification for the golf course and the ecological park Fresnillo PLC, to offer quality services to users.

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 flow banded rhyolite dome intruding a clay-altered rhyolitic ignimbrite sequence in Chihuahua, Mexico.  Photo by Miguel A Heredia.

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.

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

By Jorge Cirett

During the 21st week of the year (May 24th to May 30th, 2021), at least 33 press releases were announced by companies working in Mexico. To note, seven companies posted exploration advances on their properties, three presented mining related news, seven posted on financing (C$6M, $60 M, C$5 M, C$10 M, $2.6 M, $C$11.5 M) and one on share distribution, six more on project development or resource definition and two posted on corporate issues. ON MEXICO ISSUES, CanCham complained on the lack of clear policies and opacity on the rule of law that are affecting Canadian investments in Mexico.  The push from the Mexican government to create an institution to manage the lithium industry from the optics of sovereignty sees opposition from the mining industry, and reality. Camimex released a list of mining investments to be realized in the next few years, amounting to several billion dollars. ON EXPLORATION, in Sonora, Ridgestone Mining applied for drilling permits at Rebeico. Tocvan Ventures released results from drilling at Pilar. In Chihuahua, Kootenay Silver released high-grade results from drilling at Columba. In Durango, Mithril Resources, updated on drilling at Copalquin. In Sinaloa, Riverside Resources released surface sample results; Vizsla Silver informed on geophysical results supported by drilling, and more surveys to come; Brigadier Gold discovered bulk tonnage copper mineralization in trenching of soil anomalies. ON MINING, Impact Silver and Telson Mining presented Q1 2021 results. Magna Gold informed it has exceeded 3 M man-hours of work without lost-time incidents. ON FINANCING, Silver Bull Resources is to distribute 34.2 M shares of Arras Minerals among its shareholders. Six companies informed on financing rounds: Silver Viper Minerals (C$6 M), Vizsla Silver ($60 M), Reyna Silver (C$5 M), Sable Resources (C$10M, Defiance Silver (C$11.5 M) and Mammoth Resources ($2.58 M). ON RESOURCES AND DEVELOPMENT, Prime Mining released drilling results from Los Reyes. GR Silver Mining reported near surface drill results from Plomosas. GoGold Resources released drilling results from the Casados deposit at Los Ricos North. Discovery Silver released results from 12 drill holes targeting high-grade vein trends at Cordero. Sailfish Royalty filed a technical report with a new resource estimate for Gavilanes. Discovery Silver updated on exploration at Cordero, with 75,000 m of drilling completed on 178 holes, and four drills continuing the phase 2 program. Golden Tag announced the discovery of a shallow zone of epithermal mineralization at San Diego.   ON DEALS AND CORPORATE ISSUES, Mexus Gold informed Fresnillo PLC is reviewing its Santa Elena mine. Riverside Resources announced BHP is funding a third year of generative work in Sonora. ON SOCIAL RESPONSIBILITY, Peñoles and Fresnillo PLC informed on their policies and programs to aid in education on a wide range of communities. Minera San Xavier informed Cerro San Pedro in San Luis Potosi has been declared as “Cyanide Free Site” by the International Cyanide Management Institute.

ON MEXICO ISSUES

  • CanCham (Cámara de Comercio de Canadá en México) pointed out that the lack of clear policies and the opacity on rule of law is affecting Canadian investments, which show an 18% decrement in the last year, holding the investment of thousands of millions (Mexican number notation) of dollars in the energy, mining, pharmaceutical and agricultural sectors. These remarks were expressed by Enrique Zorrilla, Cancham’s president, in the meeting between the Commerce ministers of Mexico, Canada and the United States.
  • Mexico is preparing its strategy to develop the lithium market. The federal government intends to become a lithium producer by controlling several deposits, Bolivia’s advice and a commerce treatise to facilitate establishing an electric battery factory. The current government senate fraction is preparing a proposal to create the Instituto Nacional del Litio. (Lithium National Institute) and to declare lithium as Nation’s exclusive property (Note. – This federal initiative push misses the point that so far there is not a single lithium mine in Mexico, that its lithium in brines potential is limited at best, and that the economics of lithium extraction from clays -like in the Bacanora Lithium’s deposit in Sonora- is not yet clear).
  • Fernando Alanís, president of Camimex (Cámara Minera de México) informed that lithium deposits in Mexico have a very low grade, and lack the technology for its extraction, reason for which the country is far from becoming a world power in lithium production. Lithium presents in three kind of deposits: hard rock (pegmatites), brines (from salt lakes) and clays. Rock and brine lithium extraction accounts for 100% of the world production, whereas the extraction of lithium from clays is very energy intensive and expensive, not having a single producing mine in the entire planet.
  • Camimex released a table with the Mexican Mining Developments programmed for the next few years, same that reach US$7,820 Million in investment (Mexican number notation, equivalent to US$7.8 billion).

ON EXPLORATION

  • Mithril Resources Ltd. provided an update on drilling at its Copalquin project in Durango. The current program main focus is to extend the Refugio ore shoot down dip (presently 600 m along strike, 200 m down dip, 5 m in width), maiden drilling at Los Pinos target, extend three holes and deep exploration drilling at La Soledad and extend near-surface intercepts at El Cometa.
  • Ridgestone Mining Inc. commenced permitting for drill programs at Guadalupe y Calvo, Chihuahua, and Rebeico, Sonora.
  • Riverside Resources Inc. reported surface sample results from its La Silla project in Sinaloa. The highlighted samples from the El Ciruelo and El Roble targets returned 6.1 gpt Au, 80 gpt Ag; 5.6 gpt Au, 81 gpt Ag; 4.4 gpt Au, 35 gpt Ag; 3.5 gpt Au, 26 gpt Ag; 3.3 gpt Au, 20 gpt Ag; 2.6 gpt Au, 41 gpt Ag, on quartz veining, gossanous breccia and strongly oxidized andesite. El Ciruelo target extends for at least 1 km with a 1-5 m wide chalcedonic vein zone. El Roble vein extends for at least 300 m, reaching up to 2 m in width, with mineralization occurring also in the host rock.
  • Vizsla Silver Corp. provided an update on the recently completed geophysical survey completed at Panuco, in Sinaloa. A fixed loop electromagnetics (FLEM, or EM) was trialed and detected massive sulfide mineralization on the Napoleon and Josephine veins, proved with three massive sulfide intercepts in the latter. The Josephine vein has no known surface expression and runs parallel to the west of the main Napoleon trend. Mineralization at Tajitos is not related to massive sulfides and was not detected with EM. Vizsla is planning a property wide airborne EM-magnetic survey at Panuco.
  • Kootenay Silver Inc. announced high-grade results from the 5,000 m core drill program currently underway at Columba, Chihuahua. Highlighted core length intervals in the Hanging-Wall, F, and Footwall veins comprise 1.55 m @ 189 gpt Ag, 0.1%Pb, 0.2% Zn; 1.0 m @ 104 gpt Ag, 0.1% Zn; 2.44 m @ 217 gpt Ag, 0.1% Pb, 0.1% Zn; 2.94 m @ 321 gpt Ag, 0.2% Pb, 0.6% Zn (including 1.94 m @ 428 gpt Ag, 0.3% Pb, 0.7% Zn); 8.0 m @ 130 gpt Ag, 0.1% Pb, 0.2% Zn (including 2.9 m @ 265 gpt Ag, 0.1% Pb, 0.5% Zn); 1.95 m @ 104 gpt Ag, 0.1% Pb, 0.1% Zn; 9.0 m @ 354 gpt Ag, 0.1% Pb, 0.4% Zn (including 2.63 m @ 809 gpt Ag, 0.3% Pb, 0.4% Zn); 30.0 m @ 86 gpt Ag (including 2.37 m @ 425 gpt Ag, 0.2% Zn).
  • Brigadier Gold Ltd. announced the discovery of bulk tonnage type copper mineralization at its Picachos project in Sinaloa. Fifty meters on trenching of historic copper anomalies has returned XRF copper values ranging from 0.05 to 1.34% Cu and 20 to 284 ppm Ag. Brigadier has also completed mapping and sampling of the historic La Gloria mine, where a drill hole intercepted 1.0 m @ 6.26 gpt Au.
  • Tocvan Ventures Corp. released results for the first three holes of its phase-II drill program at Pilar, in Sonora. The drill program consists of 2,900 m of reverse circulation drilling in 17 holes, of which 14 are pending results. Highlighted down-hole intercepts comprise 29 m @ 0.71 gpt Au (including 6.1 m @ 1.9 gpt Au); 24.4 m @ 0.56 gpt Au (including 9.2 m @ 1.3 gpt Au, 14 gpt Ag); 6.1 m @ 0.48 gpt Au, 4 gpt Ag; 4.6 m @ 0.50 gpt Au, 11 gpt Ag.

ON MINING

  • Impact Silver Corp. presented its financial and operating results of Q1 2021. During the period 36.4 K tonnes were processed @ 162 gpt Ag to produce 156.9 K Oz Ag. “continued exploration on the north and south extensions of the Veta Negra Mine, trenching on the bulk tonnage gold target at Manto America in the central part of the district and exploration on the northwest (Pachuqueno) extensions of the Guadalupe Mine”.
  • Magna Gold Corp. has exceeded 3 M man-hours of work without lost-time incidents within all its operations, including contractors and suppliers. The last lost-time incident was in 2018, and the mine has not had a fatal accident in its 11 years history.
  • Telson Mining Corp. presented its first quarter 2021 financial and operating results. At Campo Morado in Guerrero, 174.4 K tonnes were processed to produce 11,013 tonnes Zn (74% Zn recovery), 1,908 tonnes Pb at cash cost $0.70 per Lb Zn and AISC of $0.90 per Lb Zn. During the period gross revenue was $21.2 M (Q1 2020: $19.0 M) and mine operating profit $5.25 M (Q1 2020: $0.26 M loss).

ON FINANCING

  • Silver Bull Resources Inc. announced its intent to distribute 34.2 M shares of Arras Minerals Corp. to Silver Bull shareholders. Silver Bull transferred mineral properties in Kazakhstan and received 36 M shares of Arras in return, making Arras an approximately 88%-owned subsidiary of Silver Bull (Sierra Mojada, Coahuila).
  • Silver Viper Minerals Corp. intends to undertake a non-brokered private placement financing to raise aggregate gross proceeds of up to C$6 M (La Virginia, Sonora).
  • Vizsla Silver Corp. entered into an agreement with Canaccord Genuity Corp. on behalf of a syndicate of underwriters to buy units of the company for gross proceeds of $60 M (Panuco, Sinaloa).
  • Reyna Silver Corp. entered into an agreement with Eight Capital and Red Cloud Securities Inc. in connection with a private placement intended to raise up to C$5 M (Guigui and Batopilas, Chihuahua).
  • Sable Resources Ltd. entered into an agreement with Sprott Capital Partners LP and Eight Capital in connection with a bought deal private placement financing to raise up to C$10 M (Vinata, Chihuahua).
  • Mammoth Resources Corp. Announced a non-brokered private placement financing aiming to raise up to $2 M, same that by the next day had been increased to $2.58 M (Tenoriba, Chihuahua).
  • Defiance Silver Corp. has increased the size of its previously announced private placement with Red Cloud Securities Inc. for gross proceeds of up to C$11.5 M (Bolañitos and Pinguico, Guanajuato).

ON RESOURCES AND DEVELOPMENT

  • Prime Mining Corp. released additional results from its ongoing 15,000 m drill program at Los Reyes, Sinaloa. The Highlighted true width intercepts are from the Guadalupe East, Zapote South and the Estaca vein: 11.6 m @ 8.12 gpt Au, 725 gpt Ag; 5.6 m @ 11.95 gpt Au, 1,221 gpt Ag; 2.1 m @ 21.63 gpt Au, 1,960 gpt Ag; 2.0 m @ 11.17 gpt Au, 909 gpt Ag; 2.4 m @ 2.00 gpt Au, 121 gpt Ag; 1.4 m @ 10.50 gpt Au, 300 gpt Ag; 3.9 m @ 0.45 gpt Au, 37 gpt Ag; 0.6 m @ 93.80 gpt Au, 829 gpt Ag.
  • GR Silver Mining Ltd. reported near surface drill results from the Plomosas mine area in Sinaloa. Highlighted true width intervals comprise 11.9 m @ 84 gpt Ag, 2.3% Pb, 2.7% Zn, 0.1% Cu; 16.7 m @ 7 gpt Ag, 0.22 gpt Au, 0.1% Pb, 0.3% Zn; 10.8 m @ 3 gpt Ag, 0.20 gpt Au, 0.1% Pb, 0.4% Zn; 4.2 m @ 10 gpt Ag, 0.09 gpt Au, 0.1%Pb, 0.6% Zn, 0.1% Cu; 2.1 m @ 350 gpt Ag, 1.0% Pb, 0.4% Zn; 1.9 m @ 348 gpt Ag, 0.3% Pb, 0.3% Zn; 1.3 m @ 26 gpt Ag, 0.19 gpt Au, 3.3% Pb, 3.3% Zn; 1.0 m @ 128 gpt Ag, 1.00 gpt Au, 9.0% Pb, 9.7% Zn, 0.2% Cu; 2.6 m @ 45 gpt Ag, 0.60 gpt Au, 3.0% Pb, 0.9% Zn; 4.7 m @ 187 gpt Ag, 0.18 gpt Au, 2.2% Pb, 1.2% Zn, 0.1% Cu; 2.0 m @ 277 gpt Ag, 0.22 gpt Au, 0.2% Pb, 0.4% Zn; 1.9 m @ 283 gpt Ag, 0.82 gpt Au, 0.3% Pb, 1.0% Zn, 0.1% Cu.
  • GoGold Resources Inc. released results of nine holes on the Casados deposit at the Los Ricos North project in Jalisco. Highlighted core length intersects comprise 29.9 m @ 0.25 gpt Au, 70 gpt Ag; 15.5 m @ 0.27 gpt Au, 67 gpt Ag; 34.4 m @ 0.17 gpt Au, 67 gpt Ag; 5.3 m @ 0.65 gpt Au, 305 gpt Ag; 9.2 m @ 0.24 gpt Au, 109 gpt Ag (including 1.9 m @ 0.61 gpt Au, 442 gpt Ag); 60.5 m @ 0.21 gpt Au, 44 gpt Ag; 2.1 m @ 0.57 gpt Au, 322 gpt Ag; 54.1 m @ 0.37 gpt Au, 92 gpt Ag; 28.5 m @ 0.43 gpt Au, 100 gpt Ag (including 1.8 m @ 2.09 gpt Au, 418 gpt Ag); 14.0 m @ 0.46 gpt Au, 134 gpt Ag (including 5.3 m @ 1.04 gpt Au, 304 gpt Ag); 2.6 m @ 2.93 gpt Au, 610 gpt Ag.
  • Discovery Silver Corp. released results from 12 diamond drill holes testing the Josefina and Todos Santos high-grade vein trends at the Cordero project in Chihuahua. Highlighted intercepts on the Josefina vein trend comprise 41.5 m @ 97 gpt Ag, 0.04 gpt Au, 1.0% Pb, 2.5% Zn (including 4.1 m @ 520 gpt Ag, 0.11 gpt Au, 3.0% Pb, 9.8% Zn and 3.3 m @ 182 gpt Ag, 0.09 gpt Au, 3.4% Pb, 7.1% Zn); 13.1 m @ 112 gpt Ag, 0.13 gpt Au, 1.3% Pb, 2.2% Zn; 36.4 m @ 66 gpt Ag, 0.10 gpt Au, 0.3% Pb, 1.0% Zn; 87.4 m @ 38 gpt Ag, 0.06 gpt Au, 0.2% Pb, 1.0% Zn; 3.6 m @ 343 gpt Ag, 0.11 gpt Au, 1.7% Pb, 2.7% Zn; 19.3 m @ 40 gpt Ag, 0.06 gpt Au, 0.7% Pb, 1.4% Zn); 22.4 m @ 156 gpt Ag, 0.10 gpt Au, 1.7% Pb, 2.3% Zn (including 3.7 m @ 299 gpt Ag, 0.16 gpt Au, 3.9% Pb, 5.7% Zn). The Josefina vein trend includes two subparallel veins that run for 1.5 km, and has been tested to 370 m depth and remains open. The Todos Santos vein trend consists of two closely spaced veins, extends for at least 1.5 km along strike and 400 m of depth in old workings and drill holes. Highlighted intercepts comprise 62.0 m @ 19 gpt Ag, 0.28 gpt Au, 0.1% Pb, 2.0% Zn; 21.4 m @ 46 gpt Ag, 0.07 gpt Au, 0.8% Pb, 1.3% Zn; 1.9 m @ 113 gpt Ag, 0.04 gpt Au, 2.4% Pb, 3.2% Zn; 3.7 m @ 96 gpt Ag, 0.07 gpt Au, 1.8% Pb, 3.0% Zn; 2.1 m @ 160 gpt Ag, 0.27 gpt Au, 3.3% Pb, 3.6% Zn.
  • Sailfish Royalty Corp. filed a NI-43-101 technical report and estimate of mineral resources for the Gavilanes project in Durango.
  • Discovery Silver Corp. updated on its Cordero project in Chihuahua and informed that by the end of the first quarter 2021 had cash and cash equivalents for $94.7 M. At Cordero 75,000 m of drilling were completed in 178 holes in phase 1 drilling, providing information to be used in the bulk-tonnage preliminary economic assessment (PEA) underway. Phase 2 drilling continues with four rigs, focused on reserve definition, resource expansion and high-grade vein delineation. Bulk tonnage targeted drilling has returned up to 128.2 m @ 65 gpt Ag, 0.05 gpt Au, 1.2% Pb, 1.3% Zn; 131.6 m @ 48 gpt Ag, 0.09 gpt Au, 0.5% Pb, 1.1% Zn (including 37.1 m @ 119 gpt Ag, 0.22 gpt Au, 1.0% Pb, 1.2% Zn); 110.0 m @ 37 gpt Ag, 0.04 gpt Au, 0.8% Pb, 1.0% Zn; 85.6 m @ 53 gpt Ag, 0.05 gpt Au, 1.4% Pb, 1.7% Zn. Drilling on high-grade veins has returned up to 4.1 m @ 520 gpt Ag, 0.11 gpt Au, 3.0% Pb, 9.8% Zn in the Josefina vein; 4.0 m @ 377 gpt Ag, 0.28 gpt Au, 7.1% Pb, 3.4% Zn in the Todos Santos vein and 4.4 m @ 246 gpt Ag, 0.39 gpt Au, 6.5% Pb, 0.4% Zn on the Parcionera vein.
  • Golden Tag Resources Ltd. discovered a new zone of epithermal mineralization at the San Diego project in Durango. The new drill hole intercepted 10.0 m @ 0.55 gpt Au, 628 gpt Ag, 1.1% Pb, 3.6% Zn, 0.12% Cu, in a zone where previous drilling had returned 2.0 m @ 0.33 gpt Au, 161 gpt Ag, 0.3% Pb, 0.2% Zn, 0.04% Cu; 3.75 m @ 0.32 gpt Au, 125 gpt Ag, 1.5% Pb, 4.0% Zn, 0.12% Cu. “The hole intersected a series of epithermal breccias and quartz-carbonate veins within the Central Diorite intrusion from 73.0 to 92.70 m which are characterized by cavity filling banded quartz and carbonate veins with fluorite and associated sulfides comprised primarily of pyrite, sphalerite, galena, boulangerite, and arsenopyrite”.

ON DEALS AND CORPORATE ISSUES

  • Mexus Gold US. informed personnel from Fresnillo PLC is reviewing its Santa Elena mine in Sonora. The geologists are checking the potential for a disseminated deposit, as well as the quartz vein currently worked by Mexus.
  • Riverside Resources Inc. announced BHP and Riverside “have agreed on moving forward with a third year of generative funding for copper exploration in Sonora. The new budget is US$1.3 M for generative exploration work.

ON SOCIAL RESPONSIBILITY

  • Peñoles and Fresnillo PLC informed on their policies and programs to aid on education in a widespread communities.
  • Minera San Xavier has been declared as “Cyanide Free Site” by the International Cyanide Management Institute. Cerro San Pedro is the first mine in the world that has realized the dismantling process of the 110 m high heap that covers 102 hectares (1 square kilometer).

Content like what you have just read can be seen at https://gambusinoprospector.com/ and at LinkedIn’s Mexico Mineral Exploration Group. On the image below:  Quartz-tourmaline breccia from a project in Sinaloa. Picture by Jorge Cirett.

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

Rich-silver banded quartz vein

By Miguel A Heredia

During the 20th week of the year (May 17th to May 23th, 2021), at least 28 press releases were announced by companies working in Mexico and 7 news published by the media, with nine reporting on resources and development, six informing on exploration results, five disclosing deals and corporate issues, five commenting on Mexican issues, five announcing financial rounds, three communicating production results, and two discussing social issues.  ON MEXICO ISSUES, Minera Penmont (Fresnillo plc) thanked the President of Mexico for his comments on the insecurity registered in Sonora. Maria Luisa Albores, Head of the Ministry of Environmental and Natural Resources (SEMARNAT), travel to Santa Rosalia to meets with businessmen and workers from El Boleo mining company. Plenary of the Guerrero State Congress approved recently the creation of the Mining Commission. Maria Luisa Albores, Head of the Ministry of Environmental and Natural Resources (SEMARNAT) made a series of unfortunate statements against the Mexican mining industry.  ON EXPLORATION, In Sonora, Tocvan received permit for trenching and drilling at its the El Pilar project, Silver Spruce, JV partner of Colibri Resources on Jackie project, discovered a new high-grade exploration target in the property, Ridgestone completed another phase of exploration at its Rebeico project, and Minaurum provided an exploration update on their Alamos and Aurifero projects. In Sinaloa, Vizsla presented results from ten holes drilled on Tajitos Vein at its Panuco project. In Oaxaca, Minaurum provided an update on their Santa Marta and Aurena projects.  ON MINING, Consolidated Zinc provided an update of its Plomosas plant in Chihuahua. Minera Alamos announced that it has successfully executed the first planned production blasts at its Santana project in Sonora. Mag Silver presented Q1, 2021 production and financial results from its Juanicipio project in Zacatecas. ON FINANCING, Canasil closed an oversubscribed non-brokered private placement for gross proceeds of $790K (La Esperanza project, Zacatecas). Defiance announced a brokered private placement for gross proceeds of up to CAD $7.2M (San Acacio project, Zacatecas). Sonoro granted, under its share option plan, incentive stock options to certain directors, officers and consultants to purchase an aggregate of 2M (Cerro Caliche, Sonora). Telson granted incentive stock options to newly appointed directors totaling 2M (Campo Morado, Guerrero). Southern Silver announced that its common shares have commenced to trade on the OTCQX (Cerro Las Minitas, Durango). ON RESOURCES AND DEVELOPMENT, Silvertone announced the appointment of a mining contractor and commences to access underground workings at its La Frazada mining property in Nayarit. Azucar Minerals recommenced drilling at its El Cobre property in Veracruz. Capitan Mining released results from eight RC drill holes from its 2021 program on the Capitan gold zone in Durango. Endeavour announced drill results from its Bolañitos property in Guanajuato. GoGold presented results from eight drill holes collared at its Los Ricos North project in Jalisco. Orex contracted SRK Consulting to conduct a resource estimation study on its Coneto property in Durango. Tarachi Gold completed a tailings drilling program at its Magistral project in Durango. Silver Tiger released drill results from its El Tigre project in Sonora.  Sailfish presented an updated mineral resource estimate on its Gavilanes property in Durango. ON DEALS AND CORPORATE ISSUES; Fabled announced proposed spinout of its copper assets into Fabled Copper Corp (Santa Maria property, Chihuahua). Chesapeake announced results from its annual general meeting of shareholders (Metates property, Durango). Comet Resources executed a binding agreement to acquire 100% interest in the La Sorpresa III tenement (Santa Teresa property, Baja California). Xali signed a new exploration and production agreement on El Dorado property in Nayarit. Riverside announced that it has recovered from Hochschild the Los Cuarentas project in Sonora. ON SOCIAL RESPONSIBILITY, Minera San Xavier (New Gold) and the Archdiocese of San Luis Potosí, announced the reopening of the temple of San Pedro Apóstol in Cerro San Pedro, San Luis Potosi. The Mining Cluster of Sonora AC announced that it will promote a comprehensive safety and work-family balance in mining.

ON MEXICO ISSUES

  • Minera Penmont (Fresnillo plc) thanked the President of Mexico for his comments on the insecurity registered in Sonora. Two years ago, Minera Penmont denounced before state authorities the commission of various crimes, including the invasion of their property, perpetrated by a criminal group that claims to be part of the ejido. This group has absolutely no legal arguments and intends to take over the private property of the company to carry out mining exploitation actions outside the law, without the concession required for it, nor the corresponding environmental permits, using dangerous and controlled materials, directly affecting the Mexican State, the environment, the company and maintaining its criminal acts in the region.
  • Maria Luisa Albores, Head of the Ministry of Environmental and Natural Resources (SEMARNAT), traveled to Santa Rosalia to meets with businessmen and workers from El Boleo mining company.  She was entrusted with a consultation to find out the opinion of the population about the expansion of the environmental impact statement (MIA). Minera Boleo requested to expand the area of extraction, processing and shipment of copper minerals.
  • Plenary of the Guerrero State Congress approved recently the creation of the Mining Commission.  The president of the Political Coordination Board (Jucopo) of the local Congress, Alfredo Sánchez Esquivel pointed out that there is a real problem in the case of mining companies and the environment, for which the creation of this Commission was necessary. For his part, the state secretary of Promotion and Economic Development, Álvaro Burgos Barrera, considered the incorporation of a legislative commission to monitor the mining sector as highly relevant. He reported that in the current state administration headed by Héctor Astudillo Flores, governance allowed mining companies to invest approximately USD $2B in Guerrero.
  • Maria Luisa Albores, Head of the Ministry of Environmental and Natural Resources (SEMARNAT) made a series of unfortunate statements against the Mexican mining industry. She assured that the country’s mining activity has caused strong environmental effects, monopolizing water and causing social inequality. Her statements are full of biased and wrong information and caused immediately the strong reaction of different actors of the mining sector. Specialists of the sector declared that the view of the federal government has on mining is wrong. CAMIMEX has indicated that of the total water consumption in Mexico, 77% is used by agriculture; 14% is for public use; 5% to generate energy and 4% for industrial use and of the latter only 0.9% corresponds to milling. CAMIMEX also stated that 74% of the water used by this industry is recycled and, of that amount, 55% is continuously reused. In addition, the mining sector has 70 sewage treatment plants in the communities where it operates. There are dams that capture rainwater, which is given to the municipality, piped and sent to homes, when it is necessary. A large percentage of companies carry out social and human rights proceedings. They generate social and environmental programs. In 2019, mining companies allocated MXP $7,450M to actions in favor of the environment and MXP $1,756M to community development, in addition to the MXP $3,496M that were paid to the Mining Fund. Many companies have the largest plant nurseries in the country and have large animal rescue zoos that are delivered to the State. Mining is one of the industries that produces and plants the most trees, 6.6M million trees produced in the nurseries of mining companies; 2.93 million trees planted reforesting an area of more than 3,000 hectares in 2019. The Mexican mining industry is over-regulated and has to comply with seven environmental permits in the stage of exploration and nineteen environmental permits throughout the life of a mine. For the reasons stated above, the mining sector rejects the indications that point to that its activity does not respect the norms of protection of the environment and that it does not generate social welfare for the neighboring communities. That is why the sector unlocks the doors to the authorities with an open invitation to visit the operations and verify for themselves these realities of the mining sector and reliably inform the population.

ON EXPLORATION

  • Tocvan Ventures Corp., received permit for additional seven trenches and forty four drill pads at its the El Pilar project in Sonora. The additional drill pads will be used during the current program and during a phase III program planned for the fall of 2021.
  • Silver Spruce Resources Inc., JV partner of Colibri Resources Corp on Jackie project, discovered a new high-grade exploration target in the property. Silver Spruce discovered a high quality, broadly-zoned geochemical anomaly with multiple mineralized surface rock samples with >0.1 g/t Au and anomalous to highly anomalous base metal and pathfinders element values, ranging up to 9.65 g/t Au and 515 g/t Ag. The target is characterized by an extensive and intense oxide and silicate alteration, which consists of bleached and oxidized argillic zones with anomalous clay minerals and muscovite. Silver Spruce plans to conduct a grid sampling and mapping around this exploration target.
  • Ridgestone Mining Inc., completed another phase of exploration at its Rebeico project, which consisted of geologic mapping, prospecting and sampling around the past producing El Cobre mine. A total of 93 samples were collected and assays are expected to arrive in the coming weeks.
  • Minaurum Gold Inc., provided an exploration update on their Alamos and Aurifero projects in Sonora, and Santa Marta and Aurena projects in Oaxaca.  At Alamos project, the company is planning to resume the phase II of its drilling program shortly, has completed a total of 30,000 m of drilling and discovered 26 separate vein zones. Minaurum is focused on systematically expanding silver shoots discovered in Phase I as well as continuing with aggressive exploration drilling focusing on new discoveries at unmined veins. At Aurifero project, the company has completed compilation of historical exploration data at Aurifero and has re-logged some of the available drill core from the project.  Minaurum will design a drill program and apply for necessary permits in the second half of 2021.
  • Vizsla Silver Corp., presented results from ten holes drilled on Tajitos Vein at its Panuco project in Sinaloa. The most significant drill intersection was encountered in hole NP-21-29 with 1.56 g/t Au and 391 g/t Ag (513 g/t AgEq) over a true width (TW) of 7.76m, including 3.60 g/t Au and 1,157 g/t Ag (1,423 g/t AgEq) over a TW of 1.22m. Vizsla has drilled 32 holes at Tajitos Vein, showing an average weighted grade of 2.1 g/t Au and 329 g/t Ag (505 g/t AgEq) over an average vein TW of 3.08m. Mineralization extends over 575 metres in length, 250 metres deep and remains open to the northeast, southwest and at depth.
  • Minaurum Gold Inc., provided an update on their Santa Marta and Aurena projects in Oaxaca. At Santa Marta project, the company has acquired regional mapping and sampling data indicate the likely presence of additional nearby VMS exploration targets that lie within Minaurum’s property holdings.  Minaurum has designed an initial drill program and submitted a drill permit for environmental approval. At Aurena project, it intends to continue holding and ultimately conducting a Phase II drill program, most efficiently in conjunction with an initial drill program at the nearby Santa Marta project.

ON MINING

  • Consolidated Zinc Limited provided an update of its Plomosas plant in Chihuahua. The Plomosas pant had its first continuous run performing at or better than designed operating capacity. The company also announced that the expansion of Plomosas plant from 100tpd to 200tpd is expected to be completed in Q4, 2021.
  • Minera Alamos Inc., announced that it has successfully executed the first planned production blasts at its Santana project in Sonora. After this, Minera Alamos has already begun on subsequent blasting as the Nicho Norte pit is opened up. This first material will be used to test the leaching circuit and commission the carbon plant prior to continuous loading of the heap leach pad as the Company takes a prudent approach to ramping up operations at Santana throughout the remainder of 2021 ahead of more steady state operation in 2022 and beyond.
  • Mag Silver Corp., presented Q1, 2021 production and financial results from its Juanicipio project in Zacatecas. The company processed 36,395 tonnes through the Fresnillo plant with 458 g/t Ag to produce 431.2K Oz Ag, 631 Oz Au, 306.9K Lb Pb, and 445.8K Lb Zn. Mag reported net sales of USD $10.1M, gross profit of USD $8.2M, net income before tax of USD $6.75M, net income after tax of USD $1.44M, resulting in a MAG equity pick up (44%) of USD $632K. The company also reported a CAPEX of USD $440K, and a cash and cash equivalent of USD $92.8K.

ON FINANCING

  • Canasil Resources Inc., closed an oversubscribed non-brokered private placement for gross proceeds of $790K. Gross proceeds will be used to fund continued drill programs on their projects in Durango and Zacatecas, and for working capital purposes (La Esperanza project, Zacatecas).
  • Defiance Silver Corp., announced a brokered private placement for gross proceeds of up to CAD $7.2M. Net proceeds will be used for exploration of their projects as well as for general working capital purposes (San Acacio project, Zacatecas).
  • Sonoro Gold Corp., granted, under its share option plan, incentive stock options to certain directors, officers and consultants to purchase an aggregate of 2M at a price of $0.3 per common share (Cerro Caliche, Sonora).
  • Telson Mining Corporation granted incentive stock options to newly appointed directors totaling 2M. The options will be exercisable at a price of $0.45 per share for a period of five years (Campo Morado, Guerrero).
  • Southern Silver Exploration Corp., announced that its common shares have commenced to trade on the OTCQX under the ticker symbol SSVFF (Cerro Las Minitas, Durango).

ON RESOURCES AND DEVELOPMENT

  • Silvertone Metals Corp., announced the appointment of a mining contractor and commences to access underground workings at its La Frazada mining property in Nayarit. Over 3km of underground workings has been identified as being potentially accessible, work has commenced to clean and making safe adits and drifts which will be geologically mapped and systematically channel sampled. “Gaining access to the underground working, will give valuable geological information and help to confirm historical measured & indicated resource of 4.7M Oz Ag and Inferred resource of 3.86M Oz Ag. The information gained from underground will also assist in targeting diamond drilling to test for extensions of the mineralization.”
  • Azucar Minerals Ltd., recommenced drilling at its El Cobre property in Veracruz. The focus for the current drill program in 2021 will be in the Pedregal, Villa Rica, and Encinal Zones of the property. Initially one hole is planned for each area.
  • Capitan Mining Inc., released results from eight RC drill holes from its 2021 program on the Capitan gold zone in Durango. The most significant drill interception  was encountered in hole 21-CARC-24 which returned 0.34 g/t Au over 42.7m, including 0.56 g(/t Au over 10.7m. These last eight holes drilled at the property, completed the previously announced 6,000m drilling program, which consisted of 28 RC holes. All of the RC holes encountered dominantly oxide gold mineralization. “To date, the Capitan gold zone has been traced for over 1.2km long and up to 450m down-dip and remains open in all directions except to the north.
  • Endeavour Silver Corp., announced drill results from its 2021 drilling program at its Bolañitos property in Guanajuato. The drilling program is focused on expanding the Melladito and Belen orebodies. Significant drill intersections were encountered in hole BN-64 collared on the Melladito HW vein which returned 8.09 g/t Au and 1,044 g/t Ag (1,611 g/t AgEq) over a true width (TW) of 1m, including 14.2 g/t Au and 1,974 g/t Ag (2,966 g/t AgEq) over a TW of 0.26m; and hole BL1.5S-4 collared on the Belen HW vein which returned 4.43 g/t Au and 148 g/t Ag (458 g/t AgEq) over a TW of 2.34m, including 13.22 g/t Au and 129 g/t Ag (1,054 g/t AgEq) over a TW of 0.19m. The company is currently producing from four orebodies at Bolañitos: Plateros, Lucero, San Miguel and Melladito.
  • GoGold Resources Inc., presented results from eight drill holes collared at its Los Ricos North project in Jalisco. The most significant drill intersections were encountered at El Orito area in holes LRGO-21-020 with 2.02 g/t Au, 168 g/t Ag, 0.02% Cu, 0.2% Pb, and 0.1% Zn (331 g/t AgEq) over 11.8m, including 11.63 g/t Au, 832 g/t Ag, 0.05% Cu, 0.5% Pb, and 0.2% Zn (1,729 g/t AgEq) over 1.8m; and hole LRGO-21-027 with 0.1 g/t Au, 57 g/t Ag, 0.24% Cu, 2.2% Pb, and 0.2% Zn (145 g/t AgEq) over 53.4m, including 0.06g/t Au, 150 g/t Ag, 0.47% Cu, 7.1% Pb, and 0.3% Zn (376 g/t AgEq) over 4.2m, plus another deeper interval of  0.04 g/t Au, 44 g/t Ag, 0.04% Cu, 0.4% Pb, and 0.3% Zn (72 g/t AgEq). The holes that the company has drilled to date at El Orito have shown mineralization averaging 30m in width over 700m in strike length and 200m in vertical depth from surface, and is open in all directions.
  • Orex Minerals Inc., Gold contracted SRK Consulting to conduct a Resource Estimation Study on its Coneto property in Durango. The database for Coneto includes 106 diamond drill holes totaling 38,516 metres on 12 vein targets. In addition to this study, a separate Metallurgical Study will be performed on each of the mineralized lodes.
  • Tarachi Gold Corp., completed 37 drill holes at depths ranging from 1.3 to 14.5m using an auger drill and 70cm-long Shelby sample capture tubes at its Magistral Tailings project in Durango. The drilling program was part of the resource estimate and Preliminary Economic Assessment (PEA) being prepared by Ausenco Engineering. The drill samples will be assayed and representative composites prepared as part of the metallurgical test work being overseen by Ausenco Engineering.
  • Silver Tiger Metals Inc., released drill results from its El Tigre project in Sonora. Hole ET-21-208A collared on the Benjamin Vein intersected 0.06 g/t Au, 382 g/t Ag, 0.17% Cu, 0.8% Pb, and 1.2% Zn (463 g/t AgEq) over 14.8m, including 0.06 g/t Au, 615 g/t Ag, 0.27% Cu, 1.2% Pb, and 1.9% Zn (735 g/t AgEq) over 8.8m, including 0.13 g/t Au, 2,451 g/t Ag, 1.12% Cu, 4.4% Pb, and 9.5% Zn ( 3,000 g/t AgEq)  over 1.3m. Hole ET 21-221 collared on the Sooy Vein intersected 4.22 g/t Au, 466 g/t Ag, 0.07% Cu, 0.2% Pb, and 0.2% Zn (799 g/t AgEq) over 1.5m, plus 0.35 g/t Au, 80 g/t Ag,  0.02% Cu, 0.2% Pb, and 0.5% Zn (129 g/t AgEq) over 0.5m, and plus 0.2 g/t Au, 197 g/t Ag, 0.07% Cu, 0.1% Pb, and 0.02% Zn (222 g/t AgEq) over 1.2m.
  • Sailfish Royalty Corp., presented an updated mineral resource estimate on its Gavilanes property in Durango. The estimated underground inferred resources using a cutoff of 100 g/t AgEq,  are 2,883,000 tonnes of 207 g/t Ag, 0.15 g/t Au, 0.12% Cu, 0.6% Pb, and 0.4% Zn to contain 27.15M Lb Zn. 18.9M Oz Ag, 13.7K Oz Au, 7.77M Lb Cu, 37.9M Lb Pb, and 27.2M Lb Zn.

ON DEALS AND CORPORATE ISSUES

  • Fabled Silver Gold Corp., announced proposed spinout of its copper assets into Fabled Copper Corp. Fabled will continue to focus on advancing its drill program on the Santa Maria silver property in Chihuahua.
  • Chesapeake Gold Corp., announced results from its annual general meeting of shareholders (Metates property, Durango).
  • Comet Resources Limited executed a binding agreement with American International Ventures Inc (AIVN) to acquire 100% interest in the La Sorpresa III tenement to extend its Santa Teresa project in Baja California. La Sorpresa is interpreted as the extension of the existence JORC resource at Santa Teresa. Comet has the right to acquire 51% through acquiring 51% of the shares of a newly established Mexican Company (NewCo) in consideration for Comet paying AIVN a total of AUD $600K to be satisfied by issuing AUD $400K in Comet shares and paying AUD $200K in cash at first completion. To obtain the remainder 49% interest, Comet will have to pay AUD $500K to be satisfied by issuing AUD $300K in Comet shares and paying AUD $200K in cash at second completion. In addition to the above, NewCo has to grant to AIVN a 1.5% NSR.
  • Xali Gold Corp., signed a new exploration and production agreement with Ingenieros Mineros, S.A. de C.V. (IMSA) on El Dorado property in Nayarit. Xali has the obligation to pay IMSA USD $30K per year until the commencement of commercial production, maximum of five years; USD $60K per year after five years or upon commencement of production. Once in production, Xali will pay a NSR of 3.5% until payments reach an aggregate amount of USD $350K of which USD $200K is payable in cash and USD $150K in Xali shares; 3% NSR to an aggregate of USD $600K; 2.5% NSR to an aggregate of USD $850K; and 1% NSR through the life of mine/operations. All annual payments are to be credited towards NSR payments.
  • Riverside Resources Inc., announced that it has recovered from Hochschild Mining the Los Cuarentas project in Sonora. Hochschild terminated the earn-in option after spending approximately USD $1.2M, including a 1,500m drilling program in nine holes. Riverside believes there are still untested seven targets with discovery potential.

ON SOCIAL RESPONSIBILITY

  • Minera San Xavier (New Gold) and the Archdiocese of San Luis Potosí, announced the reopening of the temple of san Pedro Apóstol in Cerro San Pedro, San Luis Potosi. The conservation of the cultural and historical heritage of the place is one of the priorities of the Comprehensive, Inclusive and Participatory Plan for the Closure of Mina, which is why, from the beginning of the extractive activity, implemented a periodic program of topographic measurements to monitor the structural behavior of the building. All the works were coordinated with the Cerro de San Pedro City Council, the Archdiocese of San Luis Potosí and under the strict supervision of the National Institute of Anthropology and History (INAH).
  • The Mining Cluster of Sonora AC announced that it will promote a comprehensive safety and work-family balance in mining. Mining is recognized for working with the highest safety standards and is even below the national average in accident rate according to data from the Mexican Social Security Institute (IMSS) and the Mexican Mining Chamber (CAMIMEX). Mining is an industry that is always in constant training and promotes strategies to generate healthy work environments.

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, rich-silver banded quartz vein in an intermediate –sulphidation epithermal system in a project in Chihuahua, Mexico.  Photo by Miguel A Heredia.

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

Mesothermal sheeted quartz veins

By Miguel A Heredia

During the 16th week of the year (April 19th to April 25th, 2021), at least 33 press releases were announced by companies working in Mexico and 5 news published by the media, with twelve informing on exploration results, nine disclosing deals and corporate issues, five commenting on Mexican issues, four announcing financial rounds, four reporting on resources and development, three communicating production results, and one discussing social issues.  ON MEXICO ISSUES, The Ministry of Economy issued an informative note to correct what President López Obrador said about the expansion of the operations of the mining company El Boleo that operates in Baja California Sur. Fernando Alanís, president of the Mining Chamber of Mexico (Camimex), stated that the mining industry in Mexico paid MXP $30,374M in taxes during 2020. The Mining Chamber of Mexico (Camimex) stressed that mining is a tractor industry that, in addition to boosting the regional economy, supports the development of other economic activities. The Mexican mining industry called on the environmental authorities to hold a dialogue to understand the reasons why the permits are being stopped. Representatives of the Mexican Mining industry asked the federal government to reactivate mineral concessions to increase investments in the sector. ON EXPLORATION, In Baja California, One World Lithium commenced the DDH-3 drilling program at its Salar del Diablo project. In Sonora, Alamos Gold commenced an initial drilling program at Los Venados project, Silver Spruce and its partner received the approved environmental permit from SEMARNAT to drill its El Mezquite project, and Colibri released trenching sampling results from its flagship Evelyn project. In Chihuahua, Mammoth reported results from an additional 2km 3D modeling IP/Mag survey conducted at its Tenoriba project.  In Sinaloa, Kootenay provided an update on the current drilling program conducted at its Copalito project. In Durango, Mithril informed on the exploration activities carried out during Q1, 2021 at its Copalquin project. In Zacatecas, Advance Gold announced drilling results from its Tabasquena project, and Zacatecas Silver reported that it has completed first pass geological and structural mapping, and sampling of the San Gil breccia Zone at its Zacatecas Silver project. In Jalisco, GoGold released results from eight diamond holes collared at its Los Ricos North project. ON MINING, Golden Minerals reported Q1, 2021 production results from its Rodeo mine in Durango. Gold Resource announced Q1, 2021 preliminary production results from its Oaxaca Mining Unit in Oaxaca. McEwen reported the production of 1, 300 Oz AuEq (GEOs) from residual leaching at its El Gallo mine in Sinaloa during the first quarter of 2021.  ON  FINANCING, Colibri granted 1.9M incentive stock options to officers, directors, and consultants (Evelyn project, Sonora). Empress Royalty granted 8.9M stock options to directors, officers, consultants, and employees (Pinos project, Zacatecas). Pantera Silver applied to trade on the OTCQB Venture Market operated by the OTC Markets Group Inc. in New York (The Nuevo Taxco Silver project, Guerrero). Sonoro closed its oversubscribed non-brokered private placement for gross proceeds of $3,111.045 (Cerro Caliche project, Sonora).   ON RESOURCES AND DEVELOPMENT, Discovery Silver presented results from 13 diamond holes collared at its Cordero project in Chihuahua. Excellon reported underground expansion and exploration drilling results from its Platosa mine in Durango. Sierra Metals announced an investment of USD $28M for the construction of an iron ore processing plant to produce magnetite concentrate at its Bolivar mine in Chihuahua. Silver Tiger released high-grade drilling results from its El Tigre project in Sonora.  ON DEALS AND CORPORATE ISSUES, Empress appointed a new member to its Board of Directors, and two members as Strategic and Technical Advisors (Pinos project, Zacatecas).  Golden Goliath held its annual general meeting of shareholders (San Timoteo property, Chihuahua). Goldgroup provided a legal update on its dispute with DynaResource regards the San Jose de Gracia property in Sinaloa. Inomin announced the hiring of two members to lead its exploration program in Oaxaca, Mexico (La Gitana project, Oaxaca). Masivo Silver announced it is moving forward to sign a definitive agreement on several mineralized mining concessions comprising La Santa Madre project in Sinaloa. Ridgestone appointed Dante E Aguilar as its Mexican Country Manager (Rebeico project, Sonora). Santacruz announced that the acquisition of the Zimapan mine assets from Minera Cedros, S.A.de C.V. together with the USD $17.6M loan facility from Trafigura Mexico, S.A. de C.V., are now expected to close on or about April 23, 2021. Silver Bull presented results from its annual general meeting of shareholders (Sierra Mojada project, Coahuila).  Vizsla Silver announced the spinout of Vizsla Copper through a statutory plan of arrangement (Panuco project, Sinaloa).  ON SOCIAL RESPONSIBILITY, Torex signed an agreement to build a solar plant at its Morelos property.

ON MEXICO ISSUES

  • The Ministry of Economy issued an informative note to correct what President López Obrador said about the expansion of the operations of the mining company El Boleo that operates in Baja California Sur. The mining and metallurgical company is seeking an expansion in the surface of its operations and not a new concession as stated by the president. In July 2019, El Boleo requested an expansion of its environmental impact statement, in which it requested an expansion of its mine by 446 hectares contiguous to its current operation. They indicated that this is because the life of the main mine is running out and its mineral reserves are in this adjoining land. The statement indicates that the mining project began construction in December 2010, with an investment of USD $1,717M, and began production in 2015. The company produces copper, cobalt, zinc and manganese. Currently, the mining company employs 1,282 direct jobs (836 unionized and 446 trusted).
  • Fernando Alanís, president of the Mining Chamber of Mexico (Camimex), stated that the mining industry in Mexico paid MXP $30,374M in taxes during 2020. He also highlighted that those that refer to the fact that the industry pays little are myths, as he highlighted that around 10.6% of the Gross Domestic Product generated by the industry is destined to the payment of taxes, higher than the 7.6% of the manufacturing industry, or the 6.1% of the electricity sector. Fernando Alanis detailed that of the total taxes paid, MXP $24,205M are for Income Tax (ISR), while there are MXP $2,576M in surface rights and MXP $3,593M in new rights.
  • The Mining Chamber of Mexico (Camimex) stressed that mining is a tractor industry that, in addition to boosting the regional economy, supports the development of other economic activities. It drives construction with average annual investments of USD $5B a year. The same occurs with the transport of materials, by promoting the movement of 8.7M tons per year that travel 100.2million kilometers on the roads (78%) and railways (22%) of Mexico. It also boosts port activity, with the export and import of 474M tonnes of materials per year. In total, the transportation costs of mining companies in Mexico total USD $245M per year. Through the mining clusters (Zacatecas, Sonora, Chihuahua, Guerrero and Sinaloa) a local supply has been developed that amounts to 9,700 national supplier companies, 90% of which are small and medium-sized enterprises (SMEs). For Mexico, the mining industry is an outstanding generator of income, contributing 8.3% to the industrial GDP and 2.5% to the national GDP. It is also a large generator of jobs, with more than 379,000 direct jobs and almost 2 million indirect jobs.
  • The Mexican mining industry called on the environmental authorities to hold a dialogue to understand the reasons why the permits are being stopped and to work together to unlock authorizations for Environmental Impact Manifestations (MIAs) that are being held at the Ministry of the Environment and Natural Resources which have stopped several mining projects in the country. Mining in Mexico has a robust environmental legislation that is permanently addressed, among which the General Law of Equilibrium and the Environmental Protection, as well as seven Official Mexican Standards and the general regulation that exists for activity in protected natural areas in Mexico, among others.
  • Representatives of the Mexican Mining industry asked the federal government to reactivate mineral concessions to increase investments in the sector. No new mining concessions have been granted in the country since 2019 and the effects of this were reflected in a lower Foreign Direct Investment in the sector.

ON EXPLORATION

  • One World Lithium Inc., commenced the DDH-3 drilling program at its Salar del Diablo project in Baja California. DDH-3 is located 50Km south of DDH-2 and depending on results, the company may drill more diamond drill holes in the immediate area.
  • Alamos Gold Inc., and its partner Aloro Mining Corp., commenced an initial drilling program at Los Venados project at the Mulatos mining district in Sonora. The initial drilling program will be focused on testing high sulphidation gold mineralization near the Mulatos open pit as well as on low sulphidation gold mineralization to the north where some high grade veins have been identified.
  • Silver Spruce Resources Inc., and its partner Colibri Resource Corporation, received the approved environmental permit from SEMARNAT to drill its El Mezquite project in Sonora. The phase 1 will consists of 2,000m. The drill permit was granted for 14 drill pads over the targets in the northern area of the concession. 
  • Colibri Resource Corporation released trenching sampling results from its flagship Evelyn project in Sonora. Highlights include four high grade samples from El Sahuaro target area with results of 44.9 g/t Au and 21 g/ Ag; 8.24 g/t Au and 8 g/t Ag, 23.3 g/t Au and 16 g/t Ag; and 39.6 g/t Au and 23 g/t Ag.
  • Mammoth Resources Corp., reported results from an additional 2km 3D modeling IP/Mag survey conducted at its Tenoriba project in Chihuahua.  The geophysical survey defines a strong correlation between anomalous Au values found from soil, chips, and channel samples, as well as Au values found in numerous diamond holes, extending these coincident features over what now totals 2.4Km trend of a larger 6km trend of surface  Au-Ag mineralization at Tenoriba project.
  • Kootenay Silver Inc., provided an update on the current drilling program conducted at its Copalito project in Sinaloa. It has completed 1,600m of the planned 3,500m over 19 shallow drill holes. Highlights include hole BDH-20-004 collared at 5 Senores Vein with 0.28 g/t Au and 1,297 g/t Ag (1,323 g/t AgEq) over 3.2m, including 0.14 g/t Au and 2,830 g/t Ag (2,843 g/t AgEq) over 1m; hole BDH-20-15 collared at Pilar Vein with 0.48 g/t Au, 40 g/t Ag, and 1.2% Pb+Zn (111 g/t AgEq) over 7m, including 2.28 g/t Au, 51 g/t Ag, and 6.2% Pb+Zn (394 g/t AgEq) over 1.2m; hole BDH-20-33 collared at Pilar Vein with 0.7 g/t Au, 101 g/t Ag, and 2.3% Pb+Zn (215 g/t AgEq) over 2.7m, including 7.05 g/t Au, 59 g/t Ag, and 13.5% Pb+Zn (1.210 g/t AgEq) over 0.2m; and hole BDH-20-040 collared at 5 Senores Vein with 6.65 g/t Au, 335 g/t Ag, and 2.6% Pb+Zn (933 g/t AgEq) over 2.25m, including 16.95 g/t Au, 369 g/t Ag, and 3.7% Pb+Zn (1,813 g/t AgEq) over 0.51m, and 2.09 g/t Au, 124 g/t Ag, and 0.8% Pb+Zn (311 g/t AgEq) over 9.05m. The Program has focused primarily on the 5 Senores vein, with drilling now stepping out to test the Agua and Chiva Veins.
  • Mithril Resources Inc., informed on the exploration activities carried out during Q1, 2021 at its Copalquin project in Durango. The company is focused on delivering maiden JORC Au-Ag resource for El Refugio target in H2, 2021, where hole CDH-050 intersected 62 g/t Au and 445 g/t Ag over 4.17m. The drill plan for the next quarter is to drill test deeper part of the target. At La Soledad target, hole CDH-054 encountered 10.36 g/t Au and 81 g/t Ag over 4.88m, extending the mineralization further to the west and down dip. The company also informed that it has completed the soil sampling program within El Cometa and Reyes project areas.
  • Advance Gold Corp., announced drilling results from its Tabasquena project in Zacatecas. Hole AGT-23 intersected two zones, one of 0.63 g/t Au, 20 g/t Ag, 3.5% Pb,  and 8% Zn over 2m, and a second zone of 0.04 g/t Au, 6 g/t Ag, 0.18% Pb, and 1.1% Zn over 0.55m. Advance has drilled 23 holes to date and has outlined a 2,500m by 500m wide mineralized corridor and plans to carry out more mapping and geophysics to find the feeder system at  depth responsible for this widespread mineralization.
  • Zacatecas Silver Corp., reported that it has completed first pass geological and structural mapping, and sampling of the San Gil breccia Zone, located 2km southwest of the Veta Grande vein within its Zacatecas Silver project, Zacatecas. The company outlined a north-south trending zone of ferruginous breccia averaging 20-40m wide, over a strike length of at least 800m with strong anomalous values of Ag, Au, Zn, and As, mainly in the northern segment. The company is planning a drilling program since over 600m of the northern segment of this breccia remains untested by previous drilling.
  • GoGold Resources Inc., released results from eight diamond holes collared at its Los Ricos North project in Jalisco. Significant mineralized drill intervals were encountered at hole LRGCS-21-016 with 0.69 g/t Au and 140 g/t Ag (2.55 g/t AuEq or 191 g/t AgEq) over 23.4m, including 4.94 g/t Au and 820 g/t Ag (15.87 g/t AuEq or 1,191 g/t AgEq) over 1m, and a second interval of 0.69 g/t Au and 151 g/t Ag (2.7 g/t AuEq or 155 g/t AgEq) over 15m, including 3.7 g/t Au and 797 g/t Ag (14.33 g/t AuEq or 1,075 g/t AgEq) over 2.2m; hole LRGCS-21-022 with 0.32 g/t Au and 115 g/t Ag (1.86 g/t AuEq or 140 g/t AgEq) over 14.9m, including 1.4 g/t Au and 664 g/t Ag (10.24 g/t AuEq or 768 g/t AgEq) over 2m; LRGCS-21-024 with 0.44 g/t Au and 116 g/t Ag (2 g/t AuEq or 150 g/t AgEq) over 21m, including 0.77 g/t Au and 211 g/t Ag (3.58 g/t AuEq or 268 g/t AgEq) over 9.3m, including 1.66 g/t Au and 392 g/t Ag (6.88 g/t AuEq or 516 g/t AgEq) over 1.7m, and a second interval of 0.37 g/t Au and 115 g/t Ag (1.91 g/t AuEq or 143 g/t AgEq) over 12m, including 1.11 g/t Au and 355 g/t Ag (5.85 g/t AuEq or 439 g/t AgEq) over 3.2m; and hole LRGCS-21-025 with 1.4 g/t Au and 201 g/t Ag (4.08 g/t AuEq or 306 g/t AgEq) over 16.8m, including 8.28 g/t Au and 700 g/t Ag (17.6 g/t AuEq or 1,320 g/t AgEq) over 1.5m. These drill results extended mineralization at Casados deposit.

ON MINING

  • Golden Minerals Company reported Q1, 2021 production results from its Rodeo mine in Durango. The company processed 18,791 tonnes of 3 g/t Au and 14 g/t Ag with metallurgical recoveries of 84.3% and 86.6% respectively to produce 1,390 Oz Au and 11,289 Oz Ag. It also announced its full year 2021 production guidance in which it expects to process between 125K-135K tonnes to produce 12K-14K Oz Au, and 25K-30K Oz Ag.
  • Gold Resource Corporation announced Q1, 2021 preliminary production results from its Oaxaca Mining Unit in Oaxaca. The company produced 5,019 Oz Au, 253,061 Oz Ag, 855.7K Lb Cu, 2.6M Lb Pb, and 7M Lb Zn.
  • McEwen Mining Inc., reported the production of 1,300 Oz AuEq (GEOs) from residual leaching at El Gallo mine in Sinaloa during the first quarter of 2021. 

ON FINANCING

  • Colibri Resource Corporation granted 1.9M incentive stock options to officers, directors, and consultants. The options have a term of five years at an exercise price of $0.10 per share (Evelyn project, Sonora). 
  • Empress Royalty Corp., granted 8.9M stock options to directors, officers, consultants, and employees. The options are exercisable for up to five years at a price of $0.5 per share and will be vested for a period of three years. (Pinos project, Zacatecas).
  • Pantera Silver Corp., applied to trade on the OTCQB Venture Market operated by the OTC Markets Group Inc. in New York. The Company’s shares will continue to trade on the TSX Venture Exchange under the symbol “PNTR” (The Nuevo Taxco Silver project, Guerrero).  
  • Sonoro Gold Corp., closed its oversubscribed non-brokered private placement for gross proceeds of $3,111.045. Net proceeds will be used to fund ongoing development plans at its Cerro Caliche project, including completion of a metallurgical testing, preparation of a NI 43-101 resource update and a PEA, as well as for property maintenance payments, and  for corporate and general administrative expenses.

ON RESOURCES AND DEVELOPMENT

  • Discovery Silver Corp., presented results from 13 diamond holes collared at its Cordero project in Chihuahua. Significant mineralized  intercepts were encountered in 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 g/t Au, 2% Pb, and 1.9% Zn (263 g/t AgEq) over 26.1m; hole C21-414 with 37 g/t Ag, 0.04 g/t Au, 0.8% Pb, and 1% Zn (110 g/t AgEq) over 110m, including 65 g/t Ag, 0.05 g/t Au, 1.6% Pb, and 1.4% Zn (184 g/t AgEq) over 51.8m; and hole C20-407 with 78 g/t Ag, 0.08 g/t Au, 1.3% Pb, and 3.6% Zn (279 g/t AgEq) over 27.4m. The results from this program will be incorporated in a new resource estimate and revamped PEA in the second half of the year.
  • Excellon Resources Inc., reported underground expansion and exploration drilling results from the Guadalupe North, 623, NE-1 and NE-1S Mantos at its Platosa mine in Durango. Highlights include hole EX21UG525 with 618 g/t Ag, 10.1% Pb, and 12% Zn (1,293 g/t AgEq) over 6.5m; hole EX21UG564 with 688 g/t Ag, 14.5% Pb, and 14.9% Zn (1,571 g/t AgEq) over 4.6m; and hole EX20UG522A, with 359 g/t Ag, 4.9% Pb, and 15.9% Zn (1,031 g/t AgEq) over 4.6m, including 573 g/t Ag, 8.6% Pb, and 21.5% Zn (1,531 g/t AgEq) over 1.3m. “Drilling continues to outline and expand mineralization within and around the Platosa deposit with new opportunities identified in the historically-mined Guadalupe North Manto”.
  • Sierra Metals Inc., announced an investment of USD $28M for the construction of an iron ore processing plant expected to produce approximately 500K tonnes per year of magnetite concentrate at its Bolivar mine in Chihuahua. Engineering and test work of the final process is currently underway, and construction of the processing plant is expected to commence this June and will take approximately six months to complete.
  • Silver Tiger Metals Inc., released high-grade drilling results from its El Tigre project in Sonora. Significant high-grade mineralization was encountered in recent drilling of the Sooy vein in hole ET-21-219 with 0.29 g/t Au, 288 g/t Ag, 0.05% Cu, 0.1% Pb, and 0.2% Zn (325 g/t AgEq) over 11.8m, including 0.49 g/t Au, 4,375 g/t Ag, 0.88% Cu, 2% Pb,  and 3.5% Zn (4,668 g/t AgEq) over 0.5m; hole ET-21-217 with 0.08 g/t Au, 210 g/t Ag, 0.04% Cu, 0.03% Pb, and 0.01% Zn (221 g/t AgEq) over 7.3m, including 0.66 g/t Au, 2,595 g/t Ag, 0.41% Cu, 0.3% Pb, and 0.05% Zn (2,694 g/t AgEq) over 0.5m; hole ET-21-215 with 0.26 g/t Au, 167 g/t Ag, 0.15% Cu, and 0.4% Pb (211 g/t AgEq) over 10.1m, including 0.39 g/t Au, 961 g/t Ag, 0.78% Cu, and 1.8% Pb (1,111 g/t AgEq) over 1.1m; and hole ET-21-216 with 0.08 g/t Au, 239 g/t Ag, 0.03% Cu, 0.06% Pb, and 0.3% Zn (260 g/t AgEq) over 3.5m, including 0.24 g/t Au, 1,608 g/t Ag, 0.19% Cu, 0.3% Pb, and 2% Zn (1,721 g/t AgEq) over 0.6m. Step out drilling to the south on the Sooy Vein continues to deliver consistent high grade silver results.

ON DEALS AND CORPORATE ISSUES

  • Empress Royalty Corp., appointed a new member to its Board of Directors, and two members as Strategic and Technical Advisors (Pinos project, Zacatecas).
  • Golden Goliath Resources Ltd., held its annual general meeting of shareholders (San Timoteo property, Chihuahua).
  • Goldgroup Mining Inc., provided a legal update on its dispute with DynaResource regards the San Jose de Gracia property in Sinaloa. Goldgroup announced that the Tenth Circuit Court of Appeals rejected the appeal lodged by Texas-based DynaResource Inc., to vacate the Arbitral Award, which had found that DynaUSA had improperly diluted the Company’s interest in the San Jose de Gracia Mexican mining project, which Goldgroup had earned into pursuant to an option agreement between the Company and DynaUSA. The Circuit Court’s opinion clarifies several misleading facts previously presented in various news releases issued by DynaUSA.
  • Inomin Mines Inc., announced the hiring of two key members for its Mexican exploration program:  a community relationship representative and a senior exploration geologist (La Gitana project, Oaxaca).
  • Masivo Silver Corp., announced it is moving forward to sign a definitive agreement on several mineralized mining concessions comprising La Santa Madre project in Sinaloa. Mineralization identified by Masivo at La Santa Madre project consists of at least six parallel NE Cu-Au-Ag quartz epithermal veins varying from 3-7 m with lengths varying from 600-1,200m. Masivo has also signed a letter of interest to access 3,000 hectares of private land where part of these mining claims are located, with the right to progress to an agreement for 8,000 hectares of this private land.
  • Ridgestone Mining Inc., appointed Dante E Aguilar as its Mexican Country Manager (Rebeico project, Sonora).
  • Santacruz Silver Mining ltd., announced that the acquisition of the Zimapan mine assets from Minera Cedros, S.A.de C.V. together with the USD $17.6M loan facility from Trafigura Mexico, S.A. de C.V., are now expected to close on or about April 23, 2021.
  • Silver Bull Resources Inc., presented results from its annual general meeting of shareholders (Sierra Mojada project, Coahuila).  
  • Vizsla Silver Corp., announced the spinout of Vizsla Copper Corp., through a statutory plan of arrangement. Vizsla Silver will continue to advance its Panuco Copala silver-gold project in Mexico while Vizsla Copper will focus on the assets in BC, Canada. 

ON SOCIAL RESPONSIBILITY

  • Torex Gold Resources Inc., signed an agreement to build a new 8.5 megawatt solar plant at its Morelos property, which include El Limon Guajes mine and Media Luna project in Guerrero state.  The new plant is expected to reduce Scope 2 greenhouse gas (“GHG”) emissions by up to 8.6% using 2019 as the baseline year. In addition, it will bring benefits to the local communities since this new solar plant will create new job opportunities for daily operation and maintenance.

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, mesothermal sheeted quartz veins in an orogenic gold prospect in Sonora, Mexico.  Photo by Miguel A Heredia.

The Mining and Exploration News in Mexico: Highlights on the Third Week of April, 2021

By Jorge Cirett

During the 15th week of the year (April 12th to April 18th, 2021), as a sign of the strong current activity, at least 43 press releases were announced by companies working in Mexico. To note, ten companies posted exploration advances on their properties, seven presented mining related news, six posted on financing or share options (including C$2.35 M, $3 M, C$14.1 M, C$5.6 M and $25 M), eight more on project development or resource definition and three posted on corporate issues. ON MEXICO ISSUES, Francisco Quiroga, the ex-secretary of Mining has been appointed ambassador in Germany. The Sonora Mining Cluster has two new female counselors. Napoleon Gomez Urrutia and its SNTMMS Union have been condemned to pay US$54 M to some of its affiliates. A new Coordination has been created in the Economy Secretariat to promote mining. The CTM Union opposes the outsourcing reform that would decrease the participation of workers in the profits of mining companies. ON EXPLORATION, In Sonora, Silver Spruce signed a LOI on the Diamante 1 and Diamante 2 projects; Ridgestone announced its exploration plan for the Rebeico property; Tocvan Ventures commenced phase II RC drilling at Pilar; Carlyle Commodities released good drilling results from Cecilia; Orogen informed its Lola and Sarape properties are being drilled by partners; Canuc Resources released information on the first drill hole on the present campaign at its San Javier Au-Ag project. In Chihuahua, Monarca Minerals signed a surface access agreement for its San Jose project; Kootenay Silver updated on drilling of its Columba project. In Sinaloa, Viszla Silver released drilling results from the Napoleon zone at its Panuco project. In San Luis Potosi and Zacatecas Advance Gold released results from auger sampling at several salars. ON MINING, Magna Gold, Fortuna Silver Mines, Sierra Metals, Excellon and First Majestic Silver released Q1 2021 production results. Consolidated Zinc announced the commencement of concentrate production from the recently refurbished plant at Plomosas in Chihuahua. ON FINANCING, Colibri Resources, Sonoro Gold, Santacruz Silver Mining, Heliostar Metals and Candelaria Mining released news on financing (with C$2.35 M, $3 M; $14.1 M, C$4 M and up to $25 M respectively). Defiance Silver completed its uplisting to the OTCQX Best Market ON RESOURCES AND DEVELOPMENT, Equinox Gold commenced the development of the Bermejal underground mine in Guerrero. Xali Gold submitted permit applications for the Mexico Mines Tailings project in El Oro, Estado de Mexico. Gatos Silver presented good drilling results from both extensions of the Cerro Los Gatos deposit in Chihuahua. Fabled Silver Gold released results from drilling at Santa Maria, Chihuahua. SilverCrest Metals released high-grade drilling results from several veins at Las Chispas, Sonora. Almaden Minerals is conducting an induced polarization survey at the Ixtaca deposit in Puebla. GoGold Resources released drilling results from El Favor zone at its Los Ricos North project in Jalisco. Golden Tag Resources released results from drilling at its San Diego property in Durango.   ON DEALS AND CORPORATE ISSUES, VanGold Mining closed with Endeavour Silver the acquisition of the El Cubo mine and mill complex in Guanajuato. Silver Spruce Resources signed a LOI with Colibri Resource on the Diamante 1 and Diamante 2 properties in Sonora. Empress Royalty executed a $5 M Silver Stream agreement with Telson Mining. ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUES

  • Francisco Quiroga Fernández, Mining ex-subsecretary was appointed ambassador of Mexico in Germany. Rare in the present administration, he’s a competent professional with experience in the private industry, and more than capable to develop and strengthen political and economic ties between the two countries.  
  • The Sonora Mining Cluster named Silvia Álvarez and Maria López Rosas as new counselors to the organism.
  • The Sindicato Nacional de Trabajadores Mineros, Metalúrgicos y Similares de La República Mexicana (a strong Mining Union) and its leader Napoleón Gómez Urrutia have lost a legal law suit and have been condemned by the Junta Federal de Conciliación y Arbitraje to pay US$54 M. The Union received these funds from the sale of the Cananea mine 15 years ago, and was supposed to deliver that money to the at the time workers of the company in charge. The union failed to deliver the funds to the miners.
  • The Mexican president ordered by decree the creation of the Coordination of Extractive Activities on the Economy Secretariat. Said unit is to coordinate the mining activities of the State and actions to promote national and foreign investments in mining, among other activities.
  • The CTM Union (Confederación de Trabajadores de México) opposes the reform on outsourcing that would lower the amount the miners receive as participation on the company’s annual profits.  

ON EXPLORATION

  • Silver Spruce Resources Inc. signed a letter of intention (LOI) on two properties in Sonora, Diamante 1 and Diamante 2 covering 1,057 hectares. Historical assays from samples in the Diamante 1 and Diamante 2 properties, which display epithermal intermediate sulfidation mineralization have returned up to 39.8 gpt Au, 3,460 gpt Ag, 7.3% Pb, 5.6% Zn. Diamante 1 has already six main targets, including the La Prieta-El Aguaje vein system, which runs for 2,000 m averaging 1 m in width. At Diamante 2 The Calton area displays two vein 900 m and 1,100 m in length, ranging from 0.30 m to 1.70 m in width. The El Cumbro-Mezquite Raizudo veins follow a structural trend 900 m long, displaying an average width of 1 meter.
  • Advance Gold Corp. released results from auger drilling sampling at all the salars it recently acquired in Zacatecas and San Luis Potosí. The 0.5 m to 1 m of depth samples returned highlighted results of up to 650 ppm boron (B), 1.91% Potassium (K) and 620 ppm Lithium (Li). The average grade of the samples was 247 ppm B, 1.17% K and 215 ppm Li.
  • Monarca Minerals Inc. executed and ratified by a Notary Public the surface access agreement with both the Ejido and Colonia on its San Jose silver project in Chihuahua. The company is now to apply for the environmental permit that will allow it to conduct its planned 5,000 m drilling campaign.
  • Ridgestone Mining Inc. announced an exploration plan for its 3,459 hectares Rebeico project in Sonora. The current phase will comprise geologic mapping, sampling and prospecting, with focus on the New Year zone, the Santa Elena outcrop and El Cobre mine.
  • Tocvan Ventures Corp. announced the start of phase II of its drilling program at the Pilar project in Sonora. The two-stage 4,000 m reverse circulation (RC) drill program will focus first on the “definition and expansion of the Main Zone, which during Phase I returned 94.6-meters at 1.6 g/t Au including 9.2m at 10.8 g/t Au and 38 g/t Ag”, and then to test the new targets across the property.
  • Kootenay Silver Inc. reported it has completed 12 core drill holes totalling 1,800 m as part of its 5,000 m campaign at its Columba project in Chihuahua. Kootenay has tested the F vein and is now testing an area east of the J-Z zone.
  • Carlyle Commodities Corp. released the first batch of drill results from the Cecilia project in Sonora. The program consisted of seven holes, of which results have been received for five. The best intercept was 24.2 m @ 1.51 gpt Au. Other core-length highlighted intervals comprise 1.30 m @ 0.69 gpt Au; 5.95 m @ 0.20 gpt Au, 3.10 m @ 0.52 gpt Au; 9.45 m @ 0.23 gpt Au; 1.00 m @ 0.55 gpt Au; 3.45 m @ 0.35 gpt Au; 4.30 m @ 0.29 gpt Au; 6.10 m @ 0.43 gpt Au; 3.00 m @ 0.87 gpt Au. “The first drill program from Carlyle and Riverside was focused on targeting the hydrothermal system identified at two principal elevations: 2,200 m and 1,900 m, respectively corresponding to the San Jose Target and the North Breccia Target…… to test the continuity of the mineralized structures at shallow depth”.  
  • Orogen Royalties Inc. announced the commencement of drilling programs on two of its properties in Sonora. At La Lola, partner Heliostar Metals Ltd. has initiated a 1,500 m drilling program. At the 57.8 square km Sarape project, Orogen and partner Hochschild PLC commenced a planned 3,000 m program. Eight holes will be drilled on 2.5 km of the Sarape vein. “In 2019, nine holes drilled within a 380-metre-long segment of the vein defined a structural dilation zone at 100-350 metres depth (Figure 2). In this zone the vein thickens to 23.6 metres in width..…. A deeper horizon will also be drilled to identify if the grade of the vein improves with depth”.
  • Canuc Resources Corp. informed on drilling advance at its San Javier Ag-Au project in Sonora. The first hole of a planned 6,000 m program was ended at 89.5 m in a fault zone. It intersected brecciated sedimentary rocks with stockwork veining and three intervals of massive magnetite breccia. “The 20-hole program is designed to test at least 4 magnetic features that underlie areas where a 2020 mapping and rock sampling program identified silver, gold and copper mineralization. At surface, the host rocks for three of these features are found to be magnetite breccia”. The program is focused on magnetic anomalies identified by a previous survey.
  • Viszla Silver Corp. released drilling results from step out drilling at the southern extension of the Napoleon prospect at its Panuco project in Sinaloa. The Napoleon vein has been mapped for more than 2.5 km and has four rigs drilling at the time. Highlighted true width intercepts comprise 4.46 m @ 890 gpt Ag, 19.99 gpt Au, 0.7% Pb, 1.8% Zn (including 0.92 m @ 3,804 gpt Ag, 91.91 gpt Au, 1.5% Pb, 3.5% Zn); 1.92 m @ 105.9 gpt Ag, 7.28 gpt Au, 0.7% Pb, 2.9% Zn (including 1.45 m @ 131 gpt Ag, 9.39 gpt Au, 0.8% Pb, 3.1% Zn)

ON MINING

  • Fortuna Silver Mines Inc. released production results for the first quarter 2021, including figures from its Mexican operations. At San José, in Oaxaca, 259.8 K tonnes @ 217 gpt Ag, 1.36 gpt Au were milled, recovering 90.8% Ag, 90.5% Au to produce 1.65 M Oz Ag, 10,301 Oz Au.
  • Consolidated Zinc Ltd. announced the 2021 zinc concentrate “benchmark treatment charge (TC) has been agreed between the major miners and smelters at US$159.00/t of concentrate, a reduction of 47% from last year’s benchmark treatment charge of US$299.75/t”. Treatment charges in 2020 represented 33% of total operating costs (before by-product credits) being the single largest operating cost (Plomosas, Chihuahua).
  • Magna Gold Corp. informed production levels have benefited from the accelerated stripping program, resulting in month to month growth in gold production, with 3,085 ounces in January, 2,670 ounces in February and 4,030 ounces in March. Magna anticipates the mine will return to full scale commercial production by June of this year, with 2021 guidance in the range of 55,000 to 65,000 Oz Au. During the Q1 2021, 619 K tonnes were mined @ 0.34 gpt Au, with 5.2 M tonnes of waste moved (8.40 strip ratio) to produce 9,785 Oz Au, 8.1 K Oz Ag.
  • Sierra Metals Inc. reported first quarter 2021 production reports, including figures from its Mexican properties. At Bolivar, in Chihuahua, 371.6 K tonnes were processed @ 0.77% Cu, 19.7 gpt Ag, 0.19 gpt Au, recovering 82.8% Cu, 83.6% Ag, 69.6% Au, to produce 5.2 M Lb Cu, 197 K Oz Ag, 1,591 Oz Au (7.3 M Lb CuEq). At Cusi, also in Chihuahua, 76.6 K tonnes were processed @ 15.2 gpt Ag, 0.16 gpt Au, 0.22% Pb, recovering 80.9% Ag, 39.6% Au, 81.5% Pb, to produce 313 K Oz Ag, 155 Oz Au, 298 K Lb Pb (334 K AgEq Oz Ag).
  • Consolidated Zinc Ltd. announced the first concentrate from the newly refurbished plant at its Plomosas property in Chihuahua has been produced.
  • Excellon Resources Inc. released Q1 2021 production results from the Platosa mine in Durango. At the site 21,212 tonnes were mined, 21,764 tonnes were milled @ 524 gpt Ag, 5.35% Pb, 6.73% Zn, recovering 89.7% Ag, 81.8% Pb, 74.7% Zn to produce 328.7 K Oz Ag, 2.1 M Lb Pb, 2.4 M Lb Zn, or 516.7 K Oz AgEq.
  • First Majestic Silver Corp. produced during the Q1 2021 2.9 M Oz Ag, 23,873 Oz Au, or 4.5 M Oz AgEq from its three mines in Mexico: San Dimas in Durango, Santa Elena in Sonora and La Encantada in Coahuila. The company completed 39,552 m in exploration drilling during the quarter, with 10 rigs at San Dimas, seven rigs at Santa Elena and two rigs at La Encantada.

ON FINANCING

  • Colibri Resource Corp. has closed a non-brokered private placement for CAD$2.35 M in gross profits. (Evelyn, Sonora).
  • Sonoro Gold Corp. has increased its non-brokered private placement to raise an aggregate of $3 M thorough the exercise of over allotment options (Cerro Caliche, Sonora).
  • Santacruz Silver Mining Ltd. closed its non-brokered private placement offering, for gross proceeds of CDN$14.1 M (Carrizales, Hidalgo).
  • Defiance Silver Corp. successfully completed an uplisting to the OTCQX Best Market (San Acacio, Zacatecas).
  • Heliostar Metals Ltd. is increasing the size of its C$4 M marketed private placement to raise up to C$5.6 M (La Lola, Sonora).
  • Candelaria Mining Corp. intends to raise up to $25 M to fund exploration activities at the Caballo Blanco district in Veracruz, and the Pinos project in Zacatecas.

ON RESOURCES AND DEVELOPMENT

  • Equinox Gold Corp. is commencing development of the Bermejal underground mine at its Los Filos project in Guerrero.
  • Xali Gold Corp. submitted permit applications for the Mexico Mines Tailings project in El Oro, Estado de México. The permits are to allow both the transportation and re-processing of the tailings at a new 25 hectares plant site located 5 Km from the current location. Xali’s is to pay the El Oro municipality an 8%  net profit interest (NPI). The project has an inferred resource of 1.27 M Tonnes grading 2.94 Au g/t, 75.12 Ag g/t, containing 119,900 Oz Au and 3.06 M Oz Ag.
  • Gatos Silver Inc. reported drilling results of delineation drilling at Cerro Los Gatos in Chihuahua. The program has demonstrated continuity in both the southeast and northwest projections of the current reserve. Highlighted true width drill results include: 9.5 m @ 0.11 gpt Au, 51 gpt Ag, 2.1% Pb, 3.1% Zn; 3.4 m @ 0.12 gpt Au, 122 gpt Ag, 5.0% Pb, 9.8% Zn, 0.2% Cu; 5.4 m @ 0.25 gpt Au, 121 gpt Ag, 1.5% Pb, 2.9% Zn; 7.2 m @ 0.14 gpt Au, 106 gpt Ag, 3.5% Pb, 3.4% Zn, 0.1% Cu; 2.6 m @ 0.21 gpt Au, 327 gpt Ag, 9.2% Pb, 3.8% Zn, 0.14% Cu; 12.0 m @ 0.15 gpt Au, 44 gpt Ag, 1.1% Pb, 4.0% Zn, 0.15% Cu; 2.8 m @ 0.20 gpt Au, 111 gpt Ag, 1.6% Pb, 3.9% Zn, 1.3% Cu; 1.9 m @ 0.12 gpt Au, 132 gpt Ag, 3.2% Pb, 9.9% Zn, 0.4% Cu; 7.2 m @ 0.06 gpt Au, 25 gpt Ag, 1.0% Pb, 10.3% Zn, 0.2% Cu; 5.7 m @ 0.17 gpt Au, 152 gpt Ag, 3.0% Pb, 4.4% Zn, 0.30% Cu.
  • Fabled Silver Gold Corp. released drilling results from its Santa Maria property in Chihuahua. The last sample on the last drill hole returned 75.9 gpt Ag, with 6.4 m of similar material awaiting results. Fabled is making a reinterpretation of previous work and testing the new targets identified. The ongoing 8,000 m drill program has been increased to at least 9,200 m. “This program will be focused underground to delineate the Santa Maria Central Structure with multi underground drill stations being prepared”.
  • SilverCrest Metals Inc. released additional in-fill and expansion drill results s from the Babi Vista vein splay, Babi Vista vein, Granaditas 1 vein, Granaditas 2 vein, and adjacent hangingwall and footwall veins in the Babicanora Area of its Las Chispas Project in Sonora. The results are from 78 holes totaling 29,308 m completed since the last news release for these veins, in areas with mineral resources or in close proximity. Average results for the Babi Vista vein splay comprise 0.91 true width @ 16.12 gpt Au, 1,351 gpt Ag, with individual intercepts of up to 1.04 m @ 185.65 gpt Au, 13,959 gpt Ag. Babi Vista Footwall and Granaditas 1 average 1.04 m @ 12.89 gpt Au, 1,884 gpt Ag, with the highest intercept running 0.40 m @ 114.0 gpt Au, 78,872 gpt Ag (7.89% Ag). The Babi Vista and Granaditas 2 vein average 0.67 m @ 4.56 gpt Au, 414 gpt Ag, while the Babi Vista Hangingwall averages 0.43 m @ 2.55 gpt Au, 249 gpt Ag.
  • Almaden Minerals Ltd. is conducting an induced polarization geophysical survey at the Ixtaca deposit in Puebla. “The work is designed to help define drill targets beneath the area of hydrothermal alteration called the Southeast Alteration (SE) zone and at depth beneath the Ixtaca deposit (“Ixtaca Deeps”). It is hoped that this geophysical survey, along with past survey results, will identify potential zones of veining like those in the Ixtaca deposit. The discovery drill hole in the original Ixtaca deposit area was planned in part based on high resistivity and chargeability results obtained in an earlier IP geophysical survey”.
  • GoGold Resources Inc. released results from six diamond drill holes from El Favor area at its Los Ricos North project in Jalisco. Highlighted core-length intervals comprise 69.3 m @ 108 gpt Ag, 0.49 gpt Au (including 15.3 m @ 392 gpt Ag, 1.76 gpt Au); 9.6 m @ 112 gpt Ag, 0.39 gpt Au; 59.0 m @ 119 gpt Ag, 0.32 gpt Au (including 5.0 m @ 361 gpt Ag, 0.90 gpt Au); 2.8 m @ 110 gpt Ag, 0.16 gpt Au; 16.1 m @ 97 gpt Ag, 0.21 gpt Au; 12.0 m @ 86 gpt Ag, 0.09 gpt Au; 3.2 m @ 204 gpt Ag, 0.15 gpt Au; 7.2 m @ 135 gpt Ag, 0.76 gpt Au; 23.3 m @ 92 gpt Ag, 0.22 gpt Au; 12.9 m @ 254 gpt Ag, 0.81 gpt Au (including 8.2 m @ 392 gpt Ag, 1.25 gpt Au).
  • Golden Tag Resources Ltd. released results from the first three holes of a 4,500 m campaign at its San Diego project in Durango. A hole in the Fernandez zone returned 50.17 m @ 105 gpt AgEq; Another hole intersected 127.3 m of skarn/Fernandez style mineralization, intersecting 35.46 m @ 0.06 gpt Au, 30 gpt Ag, 0.14% Pb, 0.24% Zn, 0.01% Cu (52 gpt AgEq) and 91.84 m @ 0.07 gpt Au, 15 gpt Ag, 0.31% Pb, 0.34% Zn, 0.01% Cu (49 gpt AgEq). Other holes intercepted 1.11 m @ 0.90 gpt Au, 142 gpt Ag, 0.13% Pb, 0.21% Zn, 0.02% Cu; 3.25 m @ 0.02 gpt Au, 237 gpt Ag, 0.41% Pb, 0.82% Zn, 0.08% Cu; 1.10 m @ 0.28 gpt Au, 195 gpt Ag, 1.70% Pb, 1.92% Zn, 0.07% Cu; 2.69 m @ 0.05 gpt Au, 355 gpt Ag, 0.30 % Pb, 0.41% Zn, 0.02% Cu; 8.41 m @ 0.02 gpt Au, 24 gpt Ag, 0.61% Pb, 0.49% Zn, 0.06% Cu.

ON DEALS AND CORPORATE ISSUES

  • VanGold Mining Corp. closed the acquisition of El Cubo mine and mill complex in Guanajuato with Endeavour Silver Corp..  The deal involved the payment of US$7 M in cash plus VAT and the delivery of 21.33 M shares of VanGold and a promissory note for $2.5 M a year from closing. El Cubo has 508 K tonnes grading 194 gpt Ag, 2.44 gpt Au containing 3.17 M Oz Ag, 39,860 Oz Au as indicated resources and 1.45 M tonnes @ 214 gpt Ag, 2.78 gpt Au containing 10 M Oz Ag, 129,900 Oz Au as inferred resources.
  • Silver Spruce Resources Inc. signed a letter of intention (LOI) with Colibri Resource Corp. to acquire up to 50% interest in four concessions in Sonora, comprising two properties, Diamante 1 and Diamante 2 covering 1,057 hectares. The projects are separated by 700 meters, and in close proximity to other Colibri properties. The initial cash payment by Silver Spruce is to be of $75 K (Note.- The details of the deal are lengthy and involve a third party, please take a look to the appropriate press release if interested in it).
  • Empress Royalty Corp. executed the US$5 M silver stream agreement on the Telson Mining Corp. owned Tahuehueto project in Durango. “Empress has now executed the US$5M silver stream agreement on production from Telson’s Tahuehueto project in Mexico. The US$5M Stream is on 100% of the payable silver production from Tahuehueto for the first 1,250,000 payable ounces; thereafter, the percentage will stepdown to 20% of the payable silver production to a maximum of 10 years from first production after which the Stream terminates”.

ON SOCIAL RESPONSIBILITY

  • No Relevant News.

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

On the image below:  Disseminated and vein constrained sulfides in a porphyritic intrusive rock in split diamond core from Cerro San Pedro in San Luis Potosi. Picture by Jorge Cirett.