During the 10th week of the year (March 4th to
March 10th, 2019), at least 16 press releases were announced by
companies working in Mexico. ON
MEXICO ISSUES, The cancellation of the Los Cardones project in Baja
California Sur was announced by the president of Mexico. According to the
Fraser Institute, Mexico climbed several positions on its ranking, although
security and taxation remain dragging down its overall ranking. On PDAC’s
Mexico Mining Day, the participation of Francisco Quiroga, Pedro Haces and the
governors of Durango and Sinaloa left a bittersweet message, as an invitation
for investment was mixed with the government impulse for community
consultations, the reviewing of mining concessions, labor issues and
environmental revisions. ON
EXPLORATION, In Sonora, Sonoro Metals commenced a second phase of RC drilling
at its Cerro Caliche property. In Chihuahua, Radius Gold informed is working on
a revised geological model of the previous drilling campaign as it prepares for
the next at the Amalia project. In Durango and Veracruz. Chesapeake Gold is to
focus its 2019 exploration program in properties near its flagship Metates
project, and in the Tatatila project in Veracruz. ON MINING, Americas Silver, Avino Silver and Premier gold
reported operating and/or financial results for the Q4 and full year 2018. ON FINANCING, Minera Alamos
corrected a previous financing press release, Kootenay Silver increased the size
of its placement to $7 M. McEwen Mining suspended distribution of its dividend.
Mako Mining raised CAD$4.5 M. ON
RESOURCES AND DEVELOPMENT, Mag Silver reported on 46,000 m of drilling and
the discovery of a new vein trend at Juanicipio, in Zacatecas. ON DEALS AND CORPORATE ISSUES, Oroco
informed on the status of legal actions regarding its intention to acquire the
Santo Tomás project in Sinaloa. Alio Gold changed CEO and Great Panther Silver Ltd.
changed its name to Great Panther Mining Ltd. as it diversifies into gold
ON MEXICO ISSUES
The Durango and Sinaloa governors, Jose Rosas Aispuro and Quirino
Ordaz, respectively, attended the PDAC
convention in Toronto, looking to strengthen the ties with Canadian companies
and promote investment in the local mining sector.
The president of Mexico, Andres Manuel Lopez Obrador, announced the cancellation of the Los Cardones open pit
mining project in Baja California Sur (on the bright side, the cancellation could
be the result of negotiations with the project owner, which has multiple government
contracts in other industries. On the other hand, the president said he took
the decision because he has the authority to do so).
The Fraser institute released its annual survey on mining jurisdictions
of the World, Mexico climbed several positions
to reach the 29th on the ranking, from the 44th on the
previous year. Our Latin American competitors on the foreign investment race,
Chile and Peru, also raised to the 6th (from the 8th) and
14th (from the 91th) position respectively. The categories
on which Mexico can improve significantly are: “Disputed Land Claims” (58th
position), “Socioeconomic Agreements/Community Development” (59th
position), “Labor Regulations” (58th position), Security (80th
position, regrettably) and “Taxation Regime” (71st position, just 13th
places from the bottom). To download the report: https://www.fraserinstitute.org/sites/default/files/annual-survey-of-mining-companies-2018.pdf.
In PDAC, Francisco Quiroga, undersecretary of Mining on the Secretaría
de Economía (Ministry of Economy) asked
Canadian mining companies to accept public consultations to avoid harmful
effects on society and the environment. He also solicited fiscal observance,
environmental protection and human rights respect by the companies to avoid the
closure of mines. He offered an administrative simplification to miners by the
implementation of a sole attention desk to reduce paperwork.
Also in PDAC, and during the Mexico Mining Day, Pedro Haces Barba
(Morena senator) stated that Canada is a
strategic partner on the mining sector. He expressed the Congress and Senate support
to stimulate the development of the industry, giving form to a legal framework in
the leading edge, with the participation of experts, producers,
environmentalists, workers and all other involved. Haces also stressed the
compromise to impulse significant changes to the mining law to benefit from the
sustainable exploitation of natural resources in pace with the regional dynamics
and global challenges.
Radius Gold Inc. informed on the review
and re-logging of five holes drilled to test the Campamento structural corridor
(now called San Pedro) at its Amalia project in Chihuahua. Only the deepest
hole intercepted the structure within the lower volcanic group andesitic rocks,
returning 26 m @7.1 gpt Au, 517 gpt Ag, including 5 m @ 14.7 gpt Au, 517 gpt Ag.
Access agreements with landowners have been secured, and a new environmental permit
has been applied for the second drill stage. Pan American Silver is funding the
project with Radius as the operator.
Sonoro Metals Corp. commenced the
phase two drilling campaign at its Cerro Caliche property in Sonora. This 4-month
program is to consist of approximately 5,000 m of reverse circulation drilling.
The goal is to enlarge the gold mineralization inventory, test deeper zones and
extend the high-grade gold intercept at El Colorado zone, which returned 12.2 m
@ 11.21 gpt Au. If results support it, a phase 3 drilling campaign of
approximately 7,000 m of infill drilling will follow. “The Company anticipates
that it will commission and publish an NI 43-101 technical report, including an
initial resource estimate, within two months”.
Chesapeake Gold Corp. informed this
year its exploration programs will focus on the under-explored region of its
Metates project in Durango. At Crisy, close to Metates, a quartz breccia and
stockwork that runs for over 2 km hosted in shales, produced 24 m @ 1.5 gpt Au;
13 m @ 1.1 gpt Au, 14 gpt Ag; 4 m @ 2.5 gpt Au, 49 gpt Ag, in channel samples.
At Cerro Pelon, Durango, a 3 km long, 750 m wide zone of epithermal veins and
stockworks returned 40 m @ 42 gpt, 0.2 gpt Au; 25 m @ 57 gpt Ag; 15 m @ 1.0 gpt
Au in surface sampling. At San Javier, Durango, “Silver mineralization is
hosted within clay altered sandstone, mudstone and local intrusive dikes and
has been traced continuously on surface for over 500 meters. Previous samples
returned 60 meters of 71 g/t silver and 0.6% lead. In January, a trench channel
sample collected 200 meters further along strike returned 25 meters of 46 g/t
silver and 0.5% lead”. At Yarely, Sinaloa, A channel sample returned 30 m @ 1.6
gpt Au, 38 gpt Ag, on quartz breccias and stockworks associated to a rhyolite
flow-dome complex. At Tatatila, in Veracruz, skarn bodies developed along the
contact of intrusive dikes and sills and older limestones returned 2 m @ 28.9
gpt Au, 0.5% Zn; 6 m @ 0.4 gpt Au, 5.6% Zn; 2 m @ 0.14 gpt Au, 65 gpt Ag, 2.3%
Pb, 3.1% Zn.
Americas Silver Corp. reported consolidated
financial and operational results for the fourth quarter and full year 2018. The
company had a revenue of $68.4 M from its operations in Mexico and the USA, without
entering in details by unit (Cosalá Complex, Sinaloa).
Avino Silver & Gold Mines Ltd.
announced consolidated financial results for the fourth quarter and year 2018. During
the year revenues were $34.1 M from 708.8 K tonnes milled to produce 1.28 M Oz
Ag, 8,092 Oz Au, 4.81 M Lb Cu or 2.86 M Oz AgEq, at cash cost $9.63 and AISC $10.67
(Avino, San Gonzalo mines, Durango).
Premier Gold Mines Ltd. released
operating results for Q4 and full year 2018, including figures from its
operations in Mexico. At Mercedes, in Sonora, during the last three months of the
year 183.1 K tonnes were milled @ 3.96 gpt Au, 44.8 gpt Ag, recovering 96.3% Au
and 45.2% Ag, to produce 22,465 Oz Au, 119 K Oz Ag. For the year, 665.5 K
tonnes were milled @ 3.34 gpt Au, 35.3 gpt Ag, recovering 96% Au, 40.9% Ag to
produce 68,719 Oz Au, 309.2 K Oz Ag. By product cash cost and AISC were $609
and $795 per Au Oz, respectively. “Exploration drilling continued during the
fourth quarter with 1,972 meters completed for a total drilling of 40,721
meters for the year”.
Minera Alamos Inc. issued a
correction to its previous press release, where it stated $4.93 M of gross
proceeds on a non-brokered placement. In fact, Minera Alamos raised aggregate
proceeds of $4.99 M, paying $280 K in commissions (La Fortuna, Durango;
Kootenay Silver Inc. increased the
size of its non-brokered private placement, originally for gross proceeds of
$2.5 M, to $7 M (La Negra, Sonora; La Cigarra, Chihuahua).
McEwen Mining Inc. suspended the
distribution of its dividend, stating lower revenues from operating issues at a
couple of mines as the cause (El Gallo, Sinaloa).
Mako Mining Corp. closed its
non-brokered private placement for gross proceeds of CAD$4.5 M (Trinidad,
ON RESOURCES AND DEVELOPMENT
Mag Silver Corp. reported on results from a 48-hole diamond
drilling program with a total of 46,060 m completed in late 2018 at the Juanicipio
JV property (Fresnillo PLC 56% / Mag Silver 44%), designed to expand and infill
the wide high-grade deep zone mineral resource. The program confirmed
continuity to depth of high-grade mineralization in the East and West
Valdecañas vein deep zones and in the Anticipada vein, discovering the new
Pre-Anticipada vein in the hangingwall above the system. Highlighted intercepts
include 11.6 m @ 783 gpt Ag, 2.57 gpt Au, 6.5% Pb, 9.5% Zn, 0.32% Cu at the
deep west zone; 6.3 m @ 246 gpt Ag, 1.78 gpt Au, 7.2% Pb, 11.6% Zn, 0.40% Cu at
the deep zone east; 6.2 m @ 275 gpt Ag, 4.02 gpt Au, 7.3% Pb, 9.2% Zn at the
Anticipada vein; 3.2 m @ 472 gpt Ag, 0.31 gpt Au, 0.4% Pb, 0.4% Zn, 0.03% Cu at
the Pre-Anticipada vein.
Mag Silver Corp. announced the discovery of the northeast trending
Venadas vein at the Juanicipio property in Zacatecas. The vein was inferred
from the alignment of fifteen previously unconnected intercepts before being
cut in an underground development working as a 1.1 m vein @ 116 gpt Ag, 3.16
gpt Au. The first hole designed to test the Venadas vein cut 3.0 m (core
length) @ 392 gpt Ag, 5.54 gpt Au. “Venadas is the
first ever mineralized vein in the overall Fresnillo District oriented at a
high angle to the historically mined NW oriented veins. Notably, other much
larger NE structures with intense surface alteration are known farther afield
within the Juanicipio property and are now priority exploration targets. None
have ever been directly drilled.”
ON DEALS AND CORPORATE ISSUES
Oroco Resource Corp. informed on the
legal actions being taken to acquire interest in the Santo Tomás project in Sinaloa.
“At present, the following initiatives, amongst others, are expected to
validate and maintain the status quo of the titles and eventually remove any
unwarranted ownership claims to the Santo Tomas Concessions as are currently
being made by Aztec Copper Inc., an Arizona company, and its Mexican
subsidiary, Prime Aztec Mexicana S.A de C.V.” (Santo Tomas, Sinaloa).
Alio Gold Inc. informed its chief executive officer, Greg McCunn
is resigning to pursue other opportunities. The board of directors appointed
Mark Backens as CEO, position which he has served previously on an interim
basis (San Francisco, Sonora).
Great Panther Silver Ltd. completed the
acquisition of Beadell Resources Ltd., owner of the
Tucano mine in Brazil, with 1.3 M Oz Au in reserves. As part of the evolution
in strategy, the company name has been changed to Great Panther Mining Ltd (Topia, Durango).
During the 42nd week of the year (October 15th to October 21st, 2018), at least 31 press releases were announced by companies working in Mexico. San Marco and Odyssey released advances in exploration. Galore Resources and Aura Minerals released news on mining, while Avino Silver, First Majestic, Premier Gold and Gold Resource reported Q3 production results. Sonoro Metals, First Majestic, Azucar Minerals and Plata Latina reported news related to financing. Telson, Azure, Candelaria and Goldplay reported on advances on its properties. Santacruz, Prize Mining, Azucar Minerals, Alio Gold, Canuc Resources, Minera Alamos and Excellon presented information on deals or corporate issues. ON MEXICO ISSUES, CAMIMEX stated there are 19 ongoing projects to augment gold production in Mexico. ON EXPLORATION, In Baja California Sur, Odyssey informed on SEMARNAT’s refusal for permitting the Don Diego project. In Sonora, San Marco is to start mapping and sampling the Espiritu project. In Coahuila, Prize Mining continues drilling at its Manto Negro project. ON MINING, Avino Silver, First Majestic, Premier Gold, and Gold Resource reported on Q3 2018 production. Galore begun mining at Los Gemelos, Zacatecas. Aura Minerals completed the first copper concentrate shipment from Aranzazu, also in Zacatecas. ON FINANCING, Sonoro is undertaking a private placement to raise up to $500 K. First Majestic filed a shelf prospectus that enables the raising of up to US$300 M in 25 months. Newcrest is exercising its top up rights to maintain 19.9% ownership of Azucar Minerals. Plata Latina settled C$231 K of indebtedness by share issuing. ON RESOURCES AND DEVELOPMENT, Telson released high grade results from development sampling at Tahuehueto, Durango. Azure Minerals announced a positive scoping study on its Oposura project in Sonora. Candelaria Mining filed a NI-43-101 report on its Pinos project in Zacatecas. Goldplay was approved the drilling permit by SEMARNAT for drilling at its San Marcial project in Sinaloa. Azure Minerals released a positive scoping study on its Oposura project in Sonora, for an open pit/underground operation. Newcrest is to maintain its 19.9% ownership of Azucar Minerals (see above). Minera Alamos reported second round drill results on its Santana property in Sonora. ON DEALS AND CORPORATE ISSUES, Santacruz Silver made the final payment to acquire a considerable land package in the Zacatecas district. Newcrest is to maintain its participation in Azucar Minerals. Canuc received conditional approval for its acquisition of Circle Energy. Alio Gold is disposing of some assets in Nevada and reducing its debt levels. Excellon is to sell the Beschefer project in Canada.
ON MEXICO ISSUES
According to CAMIMEX (Cámara Minera de México) there are 19 investment projects to be developed during the 2018-2019 period, five in Durango (Camino Rojo, Piritas in Peñasquito, El Compás, Fresnillo’s Piritas project and Juanicipio), four in Guerrero (Ana Paula, Bermejal underground, Media Luna, and Rey de Plata), four in Durango (Tahuehueto, Pitarrilla, Metates and San Agustin), Two in Sonora (Santa Gertrudis and a second leach plant at La Herradura), one in Puebla (Ixtaca) and one in Chihuahua (San Julian). Gold production in 2017 was 4,080,000 ounces, decreasing by 4% on the prior year, but considerably larger than the 848,000 ounces produced in year 2000.
San Marco Resources Inc. is to start exploration at its Espiritu porphyry copper project in Sonora. Work in the property will consist of geological mapping, surface rock sampling and assessment of past drill hole and surface data. San Marco’s first pass review suggest the system is open in most directions. Past drill hole intercepts include 48.0 m @ 0.19 g/t Au, 0.10 % Cu and 220.5 m @ 0.14 g/t Au, 0.15% Cu.
Odyssey Marine Exploration Inc. received notification that SEMARNAT repeated their refusal to issue an environmental permit for the phosphate deposit, “in direct contravention of the Order of the Federal Administrative Court”. SEMARNAT did not inform of any new environmental information used as a basis their decision, as was required in the Court’s Order. Odyssey “expects its legal team to file a new action before the Superior Section of the Federal Administrative Court demonstrating that SEMARNAT is in contempt of the Court’s Order with a request for sanctions and notification to Mexico’s Internal Control Unit” (Don Diego, Baja California Sur).
Prize Mining Corp. continues with the 30-hole 3,000 m drill program at its Manto Negro project in Coahuila. “Core is being logged and sampled and sent out for assay, with first results expected in November”.
Avino Silver & Gold Mines Ltd. announced its third quarter production results for 2018. In the Avino mine. during the period 81.5 K dry tonnes were milled @ 58 g/t Ag, 0.52 g/t Au, 0.54% Cu; with 84% Ag, 67% Au, 88% Cu recoveries to produce 112.6 K Oz Ag, 882 Oz Au, 865 K Lb Cu (or 3,935 Kg Ag, 28.31 Kg Au, 392.36 Tonnes Cu). In the San Gonzalo mine (which is nearing the end of its mine life) 19.7 K dry tonnes were milled @ 226 g/t Ag, 1.15 g/t Au; with 78% Ag, 75% Au to produce 107.8 K Oz Ag, 532 Oz Au (or 3,461 Kg Ag, 17,086 g Au). From the above ground stockpile 88.7 K tonnes were milled @ 62 g/t Ag, 0.45 g/t Au, 0.15% Cu; with 57% Ag, 52% Au, 37% Cu recoveries, to produce 97.4 K Oz Ag, 652 Oz Au, 112.8 K Lb Cu (or 3,127 Kg Ag, 20,931 g Au). An additional 8,212 Oz Ag were produced by a test program to recover precious metals and zinc from the San Gonzalo mine tailings. To counter significantly lower metal prices, Avino is reducing costs by postponing exploration, as well as reducing general and administrative costs in Mexico and British Columbia.
First Majestic Silver Corp. announced production results for Q3 2018. Consolidated results include the milling of 864 K tonnes of ore to produce 3.5 M Oz Ag, 35,260 Oz Au, 4.44 M Lb Pb, 1.23 M Lb Zn (or 6.74 M Oz AgEq). A 20% cost reduction program across all areas is being implemented to deal with the prolonged low silver prices. AgEq year on year production grew by 69%, mainly by the addition of the San Dimas operations. The mine by mine production table is below.
Galore Resources Inc. Has begun mining at Los Gemelos, in Zacatecas. Mining has begun without a feasibility study at Galore’s owned Duraznillo ranch, which includes the Los Gemelos and Duende 7 claims, within the Concepción del Oro district. The mining contractor has installed a gold processing plant with initial capacity of 90 tons per week. The proceeds, net of costs, are to be allocated with 40% to Galore and 60% to the contractor, URBYASA.
Aura Minerals Inc. completed the first shipment of copper concentrate since the reopening of its Aranzau mine in Zacatecas. Aura “continues to further progress on the underground mine development and operational improvements to the plant. Construction of the new tailings disposal system (TD5) is expected to be completed this year”.
Premier Gold Mines Ltd. released Q3 2018 production results, including figures from its Mercedes mine in Sonora, where 17,465 Oz Au; 88,390 Oz Ag were produced. “The Mercedes Mine remains focused on cost reduction and the development of new deposits to increase flexibility and productivity……. construction to expand tailings capacity began. Additionally, development continued on a drift from the Lagunas mine to access the higher-grade Marianas deposit located along the main Mercedes mine trend”.
Gold Resource Corp. reported preliminary production results for the third quarter 2018. During the period production totaled 434 tonnes Cu, 2,119 tonnes Pb, 4,970 tonnes Zn, and no details were disclosed on precious metals. For the first three quarters of 2018, 18,864 Oz Au, 1.34 M Oz Ag, 1,206 tonnes Cu, 5,274 tonnes Pb, 14,236 tonnes Zn were produced.
Sonoro Metals Corp. proposes to undertake a non-brokered private placement, aiming to raise up to $500K (Cerro Caliche, Sonora).
First Majestic Silver Corp. filed a preliminary short form base shelf prospectus that will allow First Majestic to raise up to US$300 M during the next 25 months (Six producing mines in Mexico).
Azucar Minerals Ltd. announced Newcrest Canada Holdings Inc. exercised its top-up rights pursuant to the May 2018 investor rights agreement with Azucar, acquiring additional shares for a total of $124.4 K, and maintaining its 19.9% ownership.
Plata Latina Minerals Corp. has agreed to settle indebtedness of C$201 K owing to its directors and indebtedness of C$30 K owing to its former CEO, by issuing common shares.
ON RESOURCES AND DEVELOPMENT
Telson Mining Corp. reported assay results from veins exposed during underground development at its Tahuehueto mine in Durango. Highlighted results comprise 3.25 m @ 7.10 g/t Au, 37 g/t Ag, 0.22% Cu, 0.9% Pb, 5.4% Zn; 6.10 m @ 5.04 g/t Au, 36 g/t Ag, 0.16% Cu, 1.8% Pb, 3.9% Zn; 8.05 m @ 2.52 g/t Au, 28 g/t Ag, 0.19% Cu, 0.8% Pb, 2.9% Zn; 4.20 m @ 8.02 g/t Au, 96 g/t Ag, 2.93% Cu, 5.0% Pb, 8.2% Zn; 4.40 m @ 2.62 g/t Au, 19 g/t Ag, 1.3% Cu, 3.8% Pb, 3.7% Zn.
Candelaria Mining Corp. filed a NI-43-01 preliminary feasibility assessment (PEA) report on its Pinos project, Zacatecas. The resources stand at: 85,847 tonnes @1.6 g/t Au, 83 g/t Ag measured; 175.7 K tonnes @ 3.6 g/t Au, 47 g/t Ag indicated; 529.6 K tonnes @ 3.6 g/t Au, 48 g/t Ag as inferred. The measured resources are in dumps, whereas the indicated and inferred resources are contained in veins 1.3 to 2.1 m in average widths. Production costs were evaluated for a range of 200 to 400 tonnes per day (tpd) operation. The capital cost is estimated at $13.5 M and the sustaining capital at $9.15 M.
Goldplay Exploration Ltd. received approval from SEMARNAT (Mexican environmental agency) for its upcoming drill programs at San Marcial, Sinaloa. Up to 69 drill holes can be completed within a two year window. A NI-43-101 resource estimate is to be completed before the end of 2018., and a PEA is expected to be undertaken in 2019.
Azure Minerals Ltd. announced a positive scoping study (SS) completed at its Oposura project in Sonora. “The Study delivers a Life of Mine (LOM) EBITDA of A$237 million, NPV(8%) (pre-tax) of A$112 million and an IRR (pre-tax) of 76%….. ”. The study calls for mining by open pit and underground methods 2.5 M tonnes @ 4.6% Zn, 2.6% Pb, 15.9 g/t Ag. The initial mine life is 5.3 years, with average annual production of 19 Kt Zn, 10 Kt Pb, 145 K Oz Ag. The total capital expenditure needed to achieve production is A$ 69.9 M (US$ 52.4 M).
Minera Alamos Inc. reported results on the second round of its phase 1 drilling program at its Santana property in Sonora. Highlighted results comprise 80.4 m @ 1.05 g/t Au; and 8.0 m @ 1.0 g/t Au and 24.5 m @ 0.81 g/t Au on a second hole. “Planning of the Phase 2 drill program will begin once the remaining drilling results have been received and interpreted”.
ON DEALS AND CORPORATE ISSUES
Santacruz Silver Mining Ltd. has made the final option payment to acquire 149 concessions covering 7,800 ha in the Zacatecas district. Santacruz now controls 8,900 ha in the district.
Azucar Minerals Ltd. informed Newcrest Canada Holdings Inc. has confirmed its intention to exercise its top-up rights on their last May signed agreement. Under the scheme, Newcrest is to maintain its 19.9% ownership of Azucar (El Cobre, Veracruz).
Alio Gold Inc. entered into a definitive agreement to sell the Lincoln Hill, Wilco and Gold Ridge projects in Nevada to Coeur Mining Inc.. Alio is to receive $19 M upon the closing of the transaction. Recently, Alio has also reduced its outstanding debt with Macquarie Bank Ltd. from $15 million in past June, to $5 million now. The Company expects to fully extinguish the MBL debt during the fourth quarter. Alio also settled a $5 M contingent liability that the Company acquired with its acquisition of Rye Patch Gold Corp. and the Florida Canyon Mine earlier this year. The Company has also updated its surety bond for the Florida Canyon Mine in Nevada, releasing an additional $5.1 million in cash (San Francisco, Sonora).
Canuc Resources Corp. received conditional approval from the TSX Venture Exchange for the previously announced acquisition of Circle Energy Ltd., a company with six oil prospective sections in Saskatchewan (San Javier, Sonora).
Excellon Resources Inc. entered into an option agreement with Wallbridge Mining Co. to sell the Beschefer project in Canada (Platosa, Durango).
During the 34th week of the year (August 20th to August 26th, 2018), at least 17 press releases were announced by companies working in Mexico. Aztec Minerals, Discovery Metals, and SilverCrest Metals released advances in exploration. Grupo Mexico and Santacruz Silver Mining released its Q2 2018 results. SilverCrest Metals, Silver Bull, Avino Silver and Prize Mining reported news on financing. Azure Minerals reported advances on the PEA and new drilling of one of its projects. ON MEXICO ISSUES, The Mexican Core Shack now counts with displays from three properties in Chihuahua, two in Durango and two in Estado de Mexico. ON EXPLORATION, In Sonora, Aztec Minerals released results from surface sampling along drill roads on its Cervantes project. In Coahuila, Discovery Metals released results from underground sampling at its Puerto Rico project. ON MINING Grupo Mexico and Santacruz Silver released its Q2 2018 reports. Grupo Mexico is to re-open its San Martin mine in Zacatecas. ON FINANCING, Silver Bull and Prize Mining closed final tranches of financing for gross proceeds of US$3.79 M and $7.62 M respectively. ON RESOURCES AND DEVELOPMENT, Azure Minerals is advancing the PEA on its Oposura property in Sonora, and announcing a new drilling campaign. SilverCrest released more drilling results from its Las Chispas project in Sonora. ON DEALS AND CORPORATE ISSUES, Alio Gold announced several changes in senior management, as well as at its corporate head office in Vancouver, related to the recent focus on its operating mines.
Aztec Minerals Corp. released surface sampling results from the California prospect within its Cervantes project in Sonora. The rock chip channel samples were collected along drill roads, returning 75 m @ 0.11 g/t Au; 222 m @ 0.47 g/t Au; 84 m @ 0.40 g/t Au; 183 m @ 0.32 g/t Au; 81 m @ 0.53 g/t Au; 33 m @ 0.26 g/t Au; 111 m @ 0.02 g/t Au. Aztec’s CAD$182 K phase 2 exploration program “of geological mapping, rock, soil and sediment sampling and airborne magnetic and radiometric surveys is focused on better defining additional drill targets” on the 3,649 hectares property. Soil surveys highlight strong gold anomalies at the California north, Purisima East, Purisima West and Jacob soil grids, with individual samples returning up to 3.3 g/t Au. The Cervantes property is held under an option to purchase agreement with Kootenay Silver Inc.
Discovery Metals Corp. reported the second batch of underground channel sampling results from the San Jose mine at its Puerto Rico project in Coahuila. “San Jose contains approximately 630m of underground drifts and stopes over four levels (from bottom to top: the Chuyon, Haulage, Rope and Upper levels) that span an approximate vertical extent of 50m and cover a horizontal extent of approximately 80m by 80m. All four levels host strongly mineralized mantos, chimneys and faults. Channel samples were collected at 3-5m intervals along both sides of the entire length of the developed workings”. Individual samples are as high as 1.2 m @ 10 g/t Ag, 46.2% Zn, 0.2% Pb, 0.2% Cu; 0.7 m @ 154 g/t Ag, 38.2% Zn, 0.6% Pb, 0.1% Cu; 1.0 m @ 18 g/t Ag, 30.2% Zn, 0.1% Pb, 2.6% Cu; 1.0 m @ 445 g/t Ag, 3.5% Zn, 26.3% Pb, 0.6% Cu.
Santacruz Silver Mining Ltd. reported operating results from the Veta Grande project in Zacatecas and the Rosario project in San Luis Potosi, for the second quarter 2018. At Veta Grande, 52 K tonnes @ 70 g/t Ag, 0.17 g/t Au, 1.14% Zn, 0.41% Pb (161 g/t AgEq) were processed, with a 45% Ag recovery, to produce 36.7 K Oz Ag, 59 Oz Au, 111 tonnes Pb, 164 tonnes Zn. At Rosario, 15.4 K tonnes @ 44 g/t Ag, 0.26 g/t Au, 2.54% Zn, 0.23% Pb (212 g/t AgEq) were processed, with 89% Ag recovery, to produce 19.4 K Oz Ag, 84 Oz Au, 31 tonnes Pb, 344 tonnes Zn.
Grupo México is to re–open its San Martin mine in Zacatecas, with an investment of US$77 M. The mine was closed eleven years ago due to a labor dispute with the Sindicato Nacional de Trabajadores Mineros, led by Napoleon Gomez Urrutia. The mine workers have now changed to the Sindicato Nacional de Trabajadores de la Exploración, Explotación y Beneficio en Minas de la República Mexicana, ending the closure by strike of the mine. The mine is to have a 32 years life span, creating directly 600 jobs and indirectly 3,000 more.
Grupo México reported its second quarter 2018 results. During the period sales increased 19%, while the EBITDA rose to US$1,316 M, and capital investments rose to US$434 M.
SilverCrest Metals Inc. has been approved to list its common shares on the New York Stock Exchange (Las Chispas, Sonora).
Silver Bull Resources Inc. completed the second and final tranche of its previously announced private placement, for aggregate gross proceeds of USD$957.5 K. Under the first tranche of the private placement Silver Bull accrued USD$2.831 M (Sierra Mojada, Coahuila).
Avino Silver & Gold Mines Ltd- filed a shelf registration statement on Form F-3 with the Securities and Exchange Commission (SEC), that is to allow the company to raise up to US$25 M (Avino, Durango).
Prize Mining Corp. closed the third and final tranche of the recently announced non-brokered private placement, raising $500 K and taking the total aggregate of gross proceeds to $7.62 M (Manto Negro, Coahuila).
ON RESOURCES AND DEVELOPMENT
Azure Minerals Ltd. announced that the preliminary economic assessment (PEA) on its Oposura project in Sonora remains on track to be reported in the third quarter of 2018. The study envisions open pit and room and pillar underground extraction. The resource includes 2.1 Mt (tonnes) @5.3% Zn, 2.9% Pb, 17.2 g/t Ag in the indicated category and 0.8 Mt @ 4.3% Zn, 2.5% Pb, 16.5 g/t Ag in the inferred category.
SilverCrest Metals Inc. announced new drill results from the Granaditas vein and the new Granaditas Dos vein at its Las Chispas property in Sonora. These veins are approximately 40 m apart and may intersect to the southeast. Highlighted true width (TW) intercepts include 1.2 m @ 5.6 g/t Au, 15 g/t Ag; 1.3 m @ 4.2 g/t Au, 229 g/t Ag; 1.2 m @ 3.10 g/t Au, 4.0 g/t Ag in the Granaditas vein, 0.5 m @ 1.8 g/t Au, 149 g/t Ag; 0.4 m @ 2.4 g/t Au, 421 g/t Ag; 2.9 m @ 294 g/t Ag; 1.2 m @ 1.2 g/t Au, 162 g/t Ag in the Granaditas Dos vein and 0.9 m @ 1.0 g/t Au, 82 g/t Ag; 1.4 m @ 2.5 g/t Au, 799 g/t Ag in an unnamed vein. The high-grade footprint in the Granaditas Vein currently measures approximately 200 m long by 200 m high and is open in most directions. The high-grade footprint in the Granaditas Dos (2) Vein currently measures approximately 100 m long by 100 m high and is open in most directions.
Azure Minerals Ltd. recommenced drilling at its Oposura project in Sonora. This campaign is focused on infill drilling and more widely spaced resource extensional drilling.
ON DEALS AND CORPORATE ISSUES
Alio Gold Inc. announced changes related to the recent focus on its operating mines San Francisco in Sonora and Florida Canyon in Nevada, which include the previously announced temporary suspension of exploration and development at its Ana Paula project in Guerrero, and the here stated termination of the Vice-president of project development Project Manager and the Chief Executive Officer. “The Company has also taken steps to reduce costs at the Ana Paula project site in Mexico while maintaining a level of local employment and community engagement…..the Company has also implemented a number of changes at its corporate office in Vancouver which in total are expected to reduce the corporate overhead by approximately $1.2 million over the next 12 months.“
Defiance Silver Corp. renegotiated and extended the terms of its San Acacio Project option agreement. “The project vendor has agreed to postpone a substantial amount of the payments due in 2018 to September 27, 2020. As a result, Defiance will be making four quarterly payments of US$226,900 totaling US$907,600 in year one and four quarterly payments of US$250,000 totaling US$1,000,000 in year two with the final option payment due September 2020.”
On the picture above, the silicified and alunite bearing ridge beyond the farming fields is interpreted as the water table interface in a shallow epithermal system, in Guanajuato. Picture by Jorge Cirett.
During the 28th week of the year (July 9th to July 15th, 2018), at least 23 press releases were announced by companies working in Mexico. Three companies updated on exploration advances. one company announced a financing round while another tries to extend the period for exercise of warrants. Seven companies released Q2 production results and two others a PEA on its properties. Seven companies released advances on the development or exploration of their resource base, and finally one company announced the appointment of its Vice-president Exploration and one other company the optioning of a property to a third party, and returning another to the underlying owner. ON MEXICO ISSUES, No relevant news. ON EXPLORATION, In Sonora, Ridgestone Mining completed an IP survey on its Rebeico property. In Chihuahua Golden Goliath resumed exploration on its San Timoteo project, and in Veracruz Mexican Gold released rock chip sampling results from its Las Minas project. ON MINING Torex Gold, Endeavour Silver, Great Panther, Capstone, Excellon, Premier Gold and Hecla released second quarter results on production. Sierra Metals released a PEA on a projected production increment at its Bolivar mine in Chihuahua. ON FINANCING, Prize Mining closed the first tranche of a non-brokered private placement. Candente Gold applied to extend the expiration period of warrants issued on a previous financing. ON RESOURCES AND DEVELOPMENT, Santacruz Silver, SilverCrest, Avino Silver, Kootenay Silver and Golden Minerals released drilling or exploration results on their properties with resources. Orla Mining released a PEA on its Camino Rojo Property in Zacatecas. ON DEALS AND CORPORATE ISSUES, Discovery Metals announced the appointment of Gernot Wober as VP Exploration. Riverside Resources optioned its La Silla property (in Sinaloa) to Sinaloa Resources, and returned the Glor property (in Sonora) to underlying owner Argonaut Gold, after two unsuccessful drill campaigns by Centerra Gold.
ON MEXICO ISSUES
No Relevant News.
Golden Goliath Resources Ltd. reported the commencement of its summer exploration program at its San Timoteo property in the Uruachic district of Chihuahua. San Timoteo hosts the longest mining tunnel in the district, with mapping and sampling having defined three ore shoots and a manto horizon within it. No exploration has been carried below the level of the tunnel, and the workings are interpreted to be above the boiling zone of an epithermal system, hence the possibility of potential bonanza grades down dip.
Mexican Gold Corp. released high grade sampling results from the Pueblo Nuevo area of its Las Minas projects in Veracruz. Multiple new vein occurrences have been discovered in the Pueblo Nuevo Valley structural corridor. The veins “show characteristics of mesothermal quartz veins”, generally 20 to cm in width, sub-vertical dips and no post mineral deformation. The dioritic host rock displays argillic alteration and sulfides up to one meter on each side of the veins. Chip sampling results include 0.43 m @ 7.87 g/t Au, 74 g/t Ag, 3.5% Zn; 0.30 m @ 6.14 g/t Au, 60 g/t Ag, 5.3% Zn; 0.50 m @ 19.18 g/t Au, 229 g/t Ag, 2.25% Zn; 0.3 m @ 4.33 g/t Au, 30 g/t Ag, 1.1% Zn; 0.15 m @ 16.17 g/t Au, 101 g/t Ag, 0.6% Cu, 14.6% Zn; 0.60 m @ 3.18 g/t Au, 17 g/t Ag, 3.5% Zn; 0.40 m @ 4.11 g/t Au, 22 g/t Ag; 0.45 m @ 19.41 g/t Au, 148 g/t Ag, 1.5% Cu, 0.8% Zn; 0.60 m @ 19.26 g/t Au, 70 g/t Ag, 2.3% Zn; 0.75 m @ 10.12 g/t Au, 30 g/t Ag.
Ridgestone Mining Inc. completed an induced polarization (IP) geophysical survey at its Rebeico Au-Cu project in Sonora. The survey comprised nine lines of IP, each 2 km long, for a total of 18 line kilometers spaced 200 m apart, covering an area of 1.6 by 2.0 km. Ridgestone has an option to acquire 100% interest in the project (subject to a 2% NSR) from YQ Gold de Mexico S. de R.L. (a Mexican corporation). The property covers 167 hectares, and includes the Alaska mine, which has old workings of up to 70 m of depth.
Torex Gold Resources Inc. released second quarter production results for 2018, period during which 80 K Oz Au were produced at its Limon-Guajes mine in Guerrero. Production has been ramping up, with 9 K tones per day (tpd) on April, 11 K tpd on May and 13 K tpd on June. The SART plant produced its first copper precipitate, with the operations team now taking the plant to full production. The updated technical report on El Limon-Guajes and Media Luna project is to be completed in late July/early August.
Sierra Metals Inc. announced the results of a preliminary economic assessment (PEA) on its Bolivar mine in Chihuahua, with the report being filed within 45 days. The PEA includes a net present value (NPV) of US$214 M at 8% discount rate, a return on investment (ROI) of 550%, on 3-4 years payback period and a net after-tax cash flow of US$303 M. The plant is to process 5 K tpd at recovery rate of 85% Cu to produce 252.5 M Lb Cu on 11 years of mine life on the existing mineral resource estimate. The longhole stoping method is to be used for mining.
Endeavour Silver Corp. reported production results for the second quarter 2018. At Guanaceví, in Durango, 71.3 K tonnes were produced @ 225 g/t Ag, 0.67 g/t Au, recovering 90.2% Ag, 92.7% Au to obtain 464.9 K Oz Ag, 1,423 Oz Au. At Bolañitos, in Guanajuato, 108.5 K tonnes were milled @ 91 g/t Ag, 1.82 g/t Au, recovering 78.3% Ag, 82.3% Au, to obtain 248.6 K Oz Ag, 5,222 Oz Au. At El Cubo, in Guanajuato, 134.5 K tonnes were milled @ 171 g/t Ag, 1.92 g/t Au, recovering 86.8% Ag, 84.6% Au, to obtain 642.4 K Oz Ag, 7,029 Oz Au. Consolidated production was 1,355.9 K Oz Ag, 13,674 Oz Au. The El Compas mine in Zacatecas is on track to commence commercial production by the end of July at the target capacity of 250 tpd.
Great Panther Silver Mines Ltd. reported production results for the second quarter 2018. At the Guanajuato Mine Complex, in Guanajuato, 77 K tonnes were processed @ 127 g/t Ag, 2.40 g/t Au, recovering 87.7% Ag, 88.2% Au to obtain 276.6 K Oz Ag, 5,240 Oz Au. At Topia, in Durango, 18.1 K tonnes were milled @ 371 g/t Ag, 0.69 g/t Au, recovering 93.9% Ag, 63.1% Au, to obtain 203.1 K Oz Ag, 253 Oz Au. Consolidated production of 95.2 K tonnes milled produced 479.8 K Oz Ag, 5,492 Oz Au, 480 tonnes Pb, 528 tonnes Zn.
Capstone Mining Corp. released production results for the second quarter of 2018, including figures from its Mexican operations. At Cozamin, in Zacatecas, 227.6 K tonnes were mined, 224.2 K tonnes milled (4,464 tpd) @ 1.66 % Cu, 1.04% Zn, 0.29% Pb, 45.3 g/t Ag. Recovery was 94.6% Cu, 66.4% Zn, 48.1% Pb, 77.5% Ag, to produce 13,581 tonnes of copper concentrate @ 25.9% Cu, 517 g/t Ag; 3,529 tonnes of zinc concentrate @ 47.5% Zn and 494 tonnes of lead concentrate @ 62.3% Pb, 1,717 g/t Ag.
Excellon Resources Inc. announced second quarter 2018 production results from its Platosa mine in Durango. Silver equivalent (AgEq) production increased 120% to 637.2 K Oz AgEq on Q2 2017 figures. 16.1 K tonnes were mined, 22.9 K tonnes milled @ 415 g/t Ag, 4.6% Pb, 6.7% Zn with recoveries of 89.6% Ag, 80.2% Pb, 82.2% Zn to produce 277.7 K Oz Ag, 1.85 M Lb Pb, 2.81 M Lb Zn, or 637.2 K Oz AgEq. Low-grade historical stockpiles and sump material with minimal associated mining cost continued to be processed. An AISC of less than $10 per Ag Oz was achieved.
Premier Gold Mines Ltd. released second quarter 2018 production results, including figures from its operations in Mexico. At Mercedes, in Sonora, 13,780 Oz Au, 44,366 Oz Ag were produced during the period. Production was impacted through the first half of the year owing to delays in the development of the Diluvio and Rey de Oro deposits. “Reinterpretation of the Diluvio ore shapes required changes to the stope designs. Mining in Rey de Oro was delayed by permitting requirements for the ventilation system”.
Hecla Mining Co. released preliminary results for the second quarter of 2018, including figures from its Mexican operations. At San Sebastian in Durango, 0.6 M Oz Ag, 3,872 Oz Au were produced in the period. The mill operated at an average of 415 tpd.
Prize Mining Corp. closed the first tranche of its non-brokered private placement for gross proceeds of $6.5 M. No finder’s fees were paid as part of this transaction. (Mercedes, Sonora).
Candente Gold Corp. has applied to extend the exercise period of 5 M outstanding share purchase warrants issued at a private placement in August 2016. “The original expiry date was August 12, 2018 and if the extension is approved, the new expiration date will be August 12, 2020”.
ON RESOURCES AND DEVELOPMENT
Sierra Metals Inc. released a new mineral reserve estimate on the new PEA on its Bolivar mine in Chihuahua. The Cu-Zn skarn (with Ag and Au credits). “Mineralization exhibits strong stratigraphic control and two stratigraphic horizons host the bulk of the mineralization: an upper calcic horizon, which predominantly hosts Zn-rich mineralization, and a lower dolomitic horizon, which predominantly hosts Cu-rich mineralization”. The indicated resources display 13.26 Mt @ 22.5 g/t Ag, 0.29 g/t Au, 1.04% Cu containing 9.6 M Oz Ag, 124 K Oz Au, 137.5 K tonnes Cu, and the inferred resources 8 M tonnes @ 22.4 g/t Ag, 0.42 g/t Au, 0.96% Cu containing 5.8 M Oz Ag, 109 Oz Au, 76.8 K tonnes Cu.
Santacruz Silver Mining Ltd. Reported initial phase I drill results from the Garcia and Armado veins on its Veta Grande project in Zacatecas. Ten drill holes totaling 3,323 m of core drilling have been completed, having received results on the first six holes. Some highlighted true width intervals: 1.0 m @ 0.05 g/t Au, 209 g/t Ag; 0.32 m @ 0.37 g/t Au, 312 g/t Ag; 4 m @ 0.06 g/t Au, 168 g/t Ag; 0.95 m @ 1.36 g/t Au, 235 g/t Ag, 7.5% Pb, 8.7% Zn, 0.2% Cu; 0.65 m @ 292 g/t Ag; 0.88 m @ 1.73 g/t Au, 34 g/t Ag.
SilverCrest Metals Inc. released further phase III drill results for the Las Chispas property in Sonora. Highlighted intervals on the Babicanora vein: 2.0 m @ 0.87 g/t Au, 269 g/t Ag; 2.5 m @ 6.04 g/t Au, 369 g/t Ag (including (0.8 m @ 14.95 g/t Au, 742 g/t Ag); 0.6 m @ 2.19 g/t Au, 63 g/t Ag. Highlighted intervals on the Babicanora footwall vein include: 5 m @ 54.59 g7t Au 6,535 g/t Ag (including 0.5 m @ 183.50 g/t Au, 21,858 g/t Ag); 2.3 m @ 4.07 g/t Au, 436 g/t Ag; 0.9 m @ 1.15 g/t Au, 151 g/t Ag. The sub parallel Babicanora FW vein high-grade footprint has now been traced for 250 m on strike.
Avino Silver Gold Mines Ltd. released drill results from the Chirumbo and Guadalupe areas of the Avino property in Durango. Avino vein highlighted core length intersects include 15.4 m @ 0.20 g/t Au, 129 g/t Ag, 0.64% Cu; 42.75 m @ 0.45 g/t Au, 46 g/t Ag, 0.44% Cu; 15.85 m @ 4.13 g/t Au, 20 g/t Ag, 0.07% Cu; 7.35 m @ 0.36 g/t Au, 47 g/t Ag, 0.33% Cu; 6.0 m @ 0.09 g/t Au, 202 g/t Ag, 0.64% Cu. Highlighted Guadalupe vein results include 0.60 m @ 1.38 g/t Au, 90 g/t Ag, 0.76% Cu; 1.50 m @ 4.79 g/t Au, 11 g/t Ag, 0.05% Cu; 3.75 m @ 0.32 g/t Au, 171 g/t Ag, 0.1% Cu; 1.60 m @ 0.23 g/t Au, 84 g/t Ag, 0.28% Cu; 5.20 m @ 0.07 g/t Au, 26 g/t Ag, 0.34% Cu; 3.90 m @ 0.33 g/t Au, 129 g/t Ag, 0.75% Cu. The Guadalupe vein has shown to extend along 800 m and to a depth of 250 m. Avino is planning a new drill program targeting the Aguila Mexicana vein system, which is one of the strongest and widest structures on the property.
Kootenay Silver Inc. released the results of eight core holes from its La Cigarra property in Chihuahua. The holes tested parts of the Las Carolinas, La Borracha and La Nogalera zones, returning medium to high grade silver intercepts in all areas. Highlighted results include: At La Borracha 12.37 m @ 33 g/t Ag, 0.05 g/t Au, 0.2% Pb, 0.2% Zn; At La Nogalera 1.78 m @ 48 g/t Ag, 0.72 g/t Au; 4.0 m @ 736 g/t Ag, 0.09 g/t Au, 0.3% Pb, 0.1% Zn; At Las Carolinas 14.0 m @ 79 g/t Ag, 0.03 g/t Au (including 6.79 m @ 144 g/t Ag, 0.05 g/t Au; 41.38 m @ 45 g/t Ag, 0.03 g/t Au.
Golden Minerals Co. disclosed that surface mapping and sampling identified the eastern extension to the Santa Maria vein at the Santa Maria project in Chihuahua. Several other veins were also discovered in the adjacent Cervantes concessions in an exploration exercise on which 542 rock chip samples were collected. The Santa Maria vein occurs as a series of quartz-calcite veins up to 4.5 m in width, returning assays as high as 0.6 g/t Au, 347 g/t Ag, 1.2% Zn. The Cervantes quartz-calcite vein system occurs 800 m east of the current resource area, for 700 m of strike length, returning up to 1.6 g/t Au, 207 g/t Ag, 0.24% Cu, 5.6% Pb, 19.5% Zn over widths of up to 1.3 m. Golden estimates completing the PEA during the third quarter of 2018.
Orla Mining Ltd. filed a preliminary economic assessment (PEA) on its Camino Rojo property, Zacatecas. The PEA visualizes a technically simple open pit mine and heap-leach operation with low capital and operating costs, “rapid payback and strong financial performance”. The project envisages a 3.3 payback period, working at a 18 K tpd rate that would place 42.5 M tonnes of material on the heaps @ 0.71 g/t Au, 13.6 g/t Ag (966 K Oz Au, 18.5 M Oz Ag), with a recovery rate of 67% Au and 15% Ag, producing 97,500 Oz/year at an All-in sustaining cost of $555 Oz/Au.
ON DEALS AND CORPORATE ISSUES
Discovery Metals Corp. announced the appointment of Gernot Wober as its Vice-President Exploration (Puerto Rico, Coahuila).
Riverside Resources Inc. and Sinaloa Resources Inc. signed a letter of intent (LOI) whereby Sinaloa Resources can earn up to 100% interest in Riverside’s La Silla project in Sinaloa. The initial option to earn 70% lies on Sinaloa issuing shares for $1 M, $60K in cash payments and exploration work commitments of $3 M over 36 months. To earn an additional 30% Sinaloa must spend a further $1 M in exploration and issue Riverside $500 K in shares. Riverside is to retain a 2.5% NSR if Riverside’s interest reduces to less than 10%. Previous work in the 2,071 hectares project includes 6 drill holes on the El Roble system, with intersects of up to 15 m @ 6.9 g/t Au.
Riverside Resources Inc. announced that drilling assays from two campaigns funded by Centerra Gold Inc. returned insufficient mineralized thickness and continuity to justify further exploration on the Glor project in Sonora. Riverside believes it has tested the best targets on the property and has terminated the underlying option earn-in agreement with Argonaut Gold.
On the picture above, structure in fine grained sedimentary rocks with iron oxides and minor quartz veining, greenish clays on the walls. From a shallow epithermal system in Guanajuato. Picture by Jorge Cirett
TORONTO, Ontario, January 8, 2018 – Torex Gold Resources Inc. (the “Company” or “Torex”) (TSX:TXG) announces that 241,000 ounces of gold were poured and 244,800 ounces of gold were sold in the 10 months of operations in 2017, the second ramp-up year at its El Limon-Guajes Mine located in southwest Mexico. The Company also provides a corporate update, including progress towards the re-start of operations at its mine site and a senior leadership change.