During the 22nd week of the year (May 27th to June 2nd, 2019), at least 27 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, on a move that is likely to paralyze the processing of documents at all regional offices of the Direccion General de Minas, the federal government fired all non-unionized workers. The Peñasquito mine in Zacatecas has now been closed by an illegal blockade for more than a month. ON EXPLORATION, In Sonora, Sonoro Metals provided an update on drilling at its Cerro Caliche property. In Chihuahua, Radius Gold released results on two more holes at its Amalia project. In Zacatecas, Galore Resources is mobilizing a rig to drill the El Alamo and Los Gemelos projects. ON MINING, Impact Silver, Telson Resources and Santacruz Silver presented its first quarter 2019 financial and/or operational results. Endeavour Silver updated on its performance plan. Camrova provided an update on mining and mine life plans for the Boleo mine in Baja. ON FINANCING, Prize Mining completed the first tranche of financing for $630 K; Ethos Gold announced a financing round intended to raise $225 K. Magna Gold completed a private placement for CAD$2.67 M. Silver One is to start trading on the OTCQB Marketplace. ON RESOURCES AND DEVELOPMENT, Gold Resource released more drill results from its El Aguila project in Oaxaca. Fresnillo is investing US$5 M at La Cienega mine in Durango. GoGold released assay results from trenching at its Los Ricos property in Jalisco. Defiance Silver is drilling a geophysical anomaly along the Veta Grande vein system in Zacatecas. ON DEALS AND CORPORATE ISSUES, Radius Gold granted Panamerican Silver an option to earn up to 65% on the Amalia project, in Chihuahua. Magna Gold is to commence trading on June 5, 2019.The company optioned the Mercedes property and lately the Las Marias and Las Cabañas properties, in the vicinity Mercedes. Discovery Metals and Levon Resources combined their enterprises on an agreement that gives Discovery and Levon shareholders 50.4% and 49.6% ownership respectively. Altos Hornos de Mexico (AHMSA) bank accounts have begun unfreezing by Mexican authorities.
ON MEXICO ISSUES
The federal government fired all non-unionized workers from the regional offices of the Dirección General de Minas (Chihuahua, Durango, Guadalajara, Hermosillo, Puebla, Queretaro, Saltillo, Zacatecas), in a move that is very likely to paralyze the already slow pace of paperwork at this government branch. Releasing of ground for staking, issuing concession titles, title reductions, cartographic information and contract registration are just some of the processes likely to be affected by this event (Personnel reduction is a cost saving strategy by the present federal administration, strategy that is feared to be likely to result in the centralization, slowing and paralysis of many government services in the coming months).
The Peñasquito mine in Zacatecas has been now affected by an illegal blockade for more than a month. So far authorities at all levels continue to advise “negotiations” as the way to solve the illegal blockade, being careful not to mention any applicable law.
Galore Resources Inc. announced the mobilization of a drill rig to El Alamo project in Zacatecas. The 2,500 m diamond drill program can be followed by additional 1,500 m of drilling at Los Gemelos project, also in Zacatecas. El Alamo consists of Cretaceous sediments, mostly limestone with some siltstone and chert, with alteration and mineralization represented by varying amounts of silicification and iron-oxide bodies after sulfides. The target has a minimum strike length of 500 m and 200 m width. Trenching highlighted values of up to 20.4 gpt Au, whereas drilling encountered widespread anomalous gold, running up to 17.1 gpt Au. Coarse gold recovery by gravity was attempted at the nearby Los Gemelos property with a partner, but the agreement on such endeavor has been terminated due to the lack of results. The drill target at Los Gemelos are porphyry intrusive related gold-copper skarns.
Radius Gold Inc. has completed six diamond drill holes totaling 1,743 m at its Amalia project in Chihuahua. Assays have been received for the second and third holes (results on the first hole were previously released), highlighting the intercept of 5m @ 647 gpt Ag of white chalcedonic stockworks, silicification and hydrothermal breccias. The remaining three holes (results pending) cut wide intervals of moderate to strong silica and adularia alteration, brecciation, quartz sulphide veinlets and trace fine to moderate black sulphides.
Sonoro Metals Corp. provided an update on the last 20 holes at its Cerro Caliche project in Sonora. Highlighted intercepts comprise 9.15 m @ 1.26 gpt AuEq at Japoneses, 3.05 m @ 6.18 gpt AuEq; 9.14 m @ 1.33 gpt AuEq at La Española, 15.24 m @ 0.56 gpt AuEq at Guadalupe, 7.6 m @ 1.14 gpt AuEq at Chinos Altos, 10.67 m @ 1.06 gpt AuEq, and 10.67 m @ 0.74 gpt AuEq at Buena Suerte. Almost 90% of the 10,000 m drill program is now complete.
Impact Silver Corp. released its first quarter 2019 financial and production results. The company processed 35.8 K tonnes @ 167 gpt Ag to produce 163.6 K Oz Ag. Revenue was $3.0 M, with a net loss for the quarter of $0.9 M. Costs per tonne processed have been reduced by 10% from last year, as the company continues to focus on cost reductions. Dense media separation is being evaluated for treating ore from the Capire project, and a new concentrate sales partnership has been signed. The company had cash of $0.4 M and trade and other receivables of $1.6 by the end of the period.
Endeavour Silver Corp. updated on its operating and financial performance plan initiated on recent months. The plan involves “changes to mine-site management and contractors, changes to employee and contractor supervision, renting used mining equipment and leasing new mining equipment, and revising the 2019 mine plans for all four mines, particularly Guanacevi. The Company has cut operating and administrative costs, reduced the employee and contractor workforce by 18% and deferred all discretionary expenditures”.
Telson Mining Corp. reported first quarter 2019 financial results. At Campo Morado in Guerrero, 152.1 K tonnes of ore @ 4.25% Zn, 1.14% Pb, 118 gpt Ag, 1.08 gpt Au were mined at a daily rate of 1,811 tonnes (tpd); 148.3 K tonnes were processed (1,765 tpd), recovering 69% Zn, 33% Pb to produce 9.7 M Lb Zn, 1.5 M Lb Pb, 212.7 K Oz Ag, 895 Oz Au at cash cost of US$0.71 and AISC US$1.01 per Lb Zn produced, obtaining a mine operating profit of C$3.05 M. At Tahuehueto in Durango, pre-production mining rendered approximately 21.6 K tonnes of ore. Telson produced 168 tonnes of lead concentrate (39% Pb, 6% Cu, 80 gpt Au, 840 gpt Ag) and 218 tonnes of Zinc concentrate (44% Zn, 9 gpt Au, 68 gpt Ag). Recoveries stood at 81% Au, 86% Ag, 90% Pb, 60% Zn, 88% Cu.
Santacruz Silver Mining Ltd. reported operating and financial results for the first quarter 2019. During the period 42.9 K tonnes were processed to produce 257 k Oz AgEq at cash cost $20.64 and an AISC of $24.38. Revenue was $2.49 M on mining operations and $790 K on mining services, reporting a net loss of $1.84 M (Veta Grande, Zacatecas; Rosario, San Luis Potosi).
Camrova Resources Inc. provided an update on the Boleo mine activities in Baja California Sur. The project is run by Korea Resources Corp, the majority shareholder, with Camrova holding a 7.24% stake that gives it rights to attend board meetings. For 2019 the production forecast of underground ore is 508 Kt @ 1.19% Cu and 2.44 Mt of open pit ore @ 80% Cu. Recoveries are expected to be 80.4% Cu, 29.9% Co, 4.2% Zn to produce 19,697 t of copper cathode, 419 t of cobalt and 1,016 t of zinc, resulting in negative free cash flow of $21M after payment of $25M in interest. It is also forecasted a 16 years mine life ending in 2034 by which time all debt is projected to be repaid, without a return of any of the capital that has been invested to date.
Prize Mining Corp. closed the first tranche of a non-brokered private placement, for gross proceeds of $630 K (Manto Negro, Coahuila).
Magna Gold Corp. completed a private placement financing for gross proceeds of CAD$2.67 M (Mercedes, Sonora).
Defiance Silver Corp. granted 990 K options to directors, officers and employees of the company at an exercise price of $0.195.
Silver One Resources Inc. shares will commence trading on the OTCQB Marketplace under the symbol “SLVRF” at open of markets on May 31, 2019(La Frazada, Nayarit).
Ethos Gold Corp. announced a non-brokered private placement to raise gross proceeds of $225 K (La Purisima, Chihuahua).
ON RESOURCES AND DEVELOPMENT
Gold Resource Corp. released further drilling results from its El Aguila property in Oaxaca. “High-grade mineralization intercepted 175 meters along the northern strike and 200 meters up-dip in vertical elevation significantly expanding the Arista Mine”. Highlighted intercepts comprise 3.45 m @ 2.45 gpt Au, 17 gpt Ag, 0.42% Cu, 1.4% Pb, 5.8% Zn; 1.45 m @ 4.35 gpt Au, 91 gpt Ag, 0.35% Cu, 1.5% Pb, 1.7% Zn; 11.95 m @ 1.04 gpt Au, 494 gpt Ag, 0.14% Cu, 0.4% Pb, 1.1% Zn (including 2.50 m @ 2.68 gpt Au, 1,420 gpt Ag, 0.33% Cu, 1.3% Pb, 3.2% Zn); 8.02 m @ 0.56 gpt Au, 395 gpt Ag, 0.06% Cu, nil Pb, 0.1%Zn.
Fresnillo PLC. is investing US$5 M at its La Cienega mine in Durango. The company is to undertake an economic evaluation of the plant expansion, intensify exploration on several targets and permitting the fourth tailings dam. The 4,000 tonne/day (tpd) mining unit has been in operation since 1992, currently with a labor force of 513 employees and 544 workers by contractors. On 2018 the plant processed 1.32 M tonnes @ 1.65 gpt Au, 164 gpt Ag, to produce 66,869 Oz Au, 6 M Oz Ag, 4,799 tonnes Pb, 5,892 tonnes Zn.
GoGold Resources Inc. released assay results from 23 exploration trenches completed at its Los Ricos project in Jalisco. Geological mapping, sampling and trenching defined at least five new targets, identifying mineralisation for further 1.5 Km along strike, taking the system to a total longitude of 3.2 Km, on 1 to 25 m widths. Highlighted results (on estimated true width) include 22 m @ 0.92 gpt Au, 54 gpt Ag; 16.0 m @ 2.53 gpt Au, 187 gpt Ag; 21.0 m @ 0.44 gpt Au, 47 gpt Ag; 18.0 m @ 3.50 gpt Au, 71 gpt Ag; 7.4 m @ 2.16 gpt Au, 31 gpt Ag; 5.6 m @ 3.32 gpt Au, 49 gpt Ag; 9.1 m @ 1.73 gpt Au, 112 gpt Ag; 16 m @ 0.55 gpt Au, 163 gpt Ag; 17.6 m @ 0.76 gpt Au, 121 gpt Ag; 10.1 m @ 1.42 gpt Au, 164 gpt Ag; 8.8 m @ 1.95 gpt Au, 129 gpt Ag.
Defiance Silver Corp. commenced a drill program targeting a large induced polarization (IP) geophysical target on the Veta Grande vein, SE of the San Acacio Silver deposit (with an inferred resource of 17 M Oz Ag @ 182 gpt Ag). The program is testing a 450 m step out on the Veta Grande vein system
ON DEALS AND CORPORATE ISSUES
Radius Gold Corp. has granted Pan American Silver Corp. the option to earn up to an initial 65% interest in the Amalia project in Chihuahua, by making cash payments to Radius totaling US$1.5 M (of which US$100 K has been received) and expending US$2 M on exploration over four years. Pan American may earn an additional 10% by advancing the property to preliminary-feasibility (Amalia, Chihuahua).
Magna Gold Corp. informed that its qualifying transaction is scheduled to close on June 5, 2019 pursuant to the policies of the Exchange. Trading of the common shares of Magna is expected to resume on the Exchange under the symbol “MGR”. The company has optioned 100% interest in two mining claims (the 345 ha Mercedes property in Sonora) for a four-year period, paying an aggregate of US$1.34 M paid in installments, starting on the sixth month of the effective date of the agreement and issue 2.44 M shares to the vendor. The seller is to retain a 3% NSR capped at $3.5 M, which can be bought at $500 K per percentage point within the first three years of production.
Magna Gold Corp. entered into an agreement to acquire the Las Marias property and Las Cabañas mineral claims. Las Marias consists of seven concessions covering 646 hectares adjacent to its flagship Mercedes property and Las Cabañas consists of two concessions covering 248 hectares 10 km from the Mercedes property. The total purchase will be $250 k and the issuance of 1 M common shares of the company. “Magna’s total land tenure will increase to 1,239 hectares of highly prospective ground”.
Discovery Metals Corp. and Levon Resources Ltd. entered into an arrangement agreement to combine both enterprises to create a “leading silver-focused exploration and development company that will control several district-scale projects in Mexico”. Discovery has agreed to acquire all of the issued and common shares of Levon, with Levon’s shareholders receiving 0.55 shares of Discovery for every Levon share held. Upon completing the transaction former shareholders of Levon will control 49.6% of the Discovery shares outstanding. Discovery holds a 150 K hectares land package in Coahuila, encompassing three shallow and high-grade silver-zinc-lead projects, while Levon’s primary asset is the Cordero project in Chihuahua, with 990 M tonnes @ 32 gpt AgEq and 282 M tones @ 56 gpt AgEq in indicated and inferred mineral resources respectively.
Altos Hornos de Mexico S. (AHMSA) bank accounts have begun unfreezing by Mexican authorities, allowing normal activities to be resumed. “The bank accounts of the steelmaker were frozen by Mexico’s financial intelligence unit earlier in the week on suspicion of money laundering. The move to unfreeze the accounts follows the arrest in Spain of AHMSA chairman Alonso Ancira, who was detained by Interpol on May 28.”
During the 12th week of the year (March 18th to
March 24th, 2019), at least 20 press releases were announced by
companies working in Mexico. ON MEXICO ISSUES, a worrisome statement
from the Mexican president regarding the mining concessions makes evident the
need to augment the interaction of the mining industry with all levels of
government. ON EXPLORATION, in
Sonora, Riverside Resources disclosed initial results from exploration work at
its recently staked Sandy project; In Chihuahua, Sable released exciting drill
results from its Margarita project; Kootenay presented results from surface
sampling at its Mecatona property; Evrim and Harvest Gold released final drill
results from Cerro Cascaron; Silver Spruce is defining shallow targets for an
incoming drill program. In Durango, Gainey Resources indicated that the main
vein system at its Las Margaritas project is over 3 Km long. In Veracruz,
Azucar Minerals presented long and favorable results from one more hole at El
Cobre. ON MINING, Torex Gold paid US$11.9 M in taxes during 2018.
Excellon reported financial results for Q4 and full year 2018. ON FINANCING, Sonoro Metals is
to undertake a financing round to raise up to $650 K. First Majestic is to
extend its share repurchase program. Solaris Copper closed a C$3.9 M placement.
ON RESOURCES AND DEVELOPMENT,
Almaden Minerals. Issued a Report on Corporate Social Responsibility for its
Ixtaca project in Puebla, and submitted an environmental report for permitting.
VVC Exploration updated its resource estimate for the Samalayuca project in Chihuahua.
Gold Resource reported on a high-grade result from sampling a new crosscut
during development at its El Aguila project in Oaxaca. ON DEALS AND CORPORATE ISSUES, Silver One hired Strata-Star
Group for investor relations.
ON MEXICO ISSUES
On a worrisome statement for the Mexican mining industry, during one
of his daily press conferences the president of Mexico, Andres Manuel Lopez Obrador, expressed that although no mining concession is to be revoked, no
more mining concessions are to be granted. The only requisites are that mining
companies, “specially the Canadian ones”, conduct a clean mining operation,
that miners are well paid and that they pay the same tax rates than in Canada. He
added that the concessions delivered by past governments in the last 36 years
were about 40 to 50 M hectares, meaning 30% of the national territory “and they
wouldn’t finish with it in a thousand years”.
Note from editor. In the view of this letter editor, the president words express a lack
of knowledge about the rigid guidelines under which exploration and mining international
companies, and Canadian ones in particular, obtain financing, explore, interact
with the communities, develop, mine and reclaim the used land. On his other
remarks, mining companies pay salaries above average in Mexico, and if Canadian
companies followed the Mexican president words, they would be paying fewer
taxes, not more. Mexico needs more land under mining concessions, not less, as
these concessions, besides paying hefty duties, are the basis for investments that feed a long
chain of service providers that benefit hundreds of thousands of Mexicans. It
is clear and evident that we, as part of the mining industry, need to invest
the time and resources to educate the different levels of government about the
benefits of mining.
Gainey Resources Capital Corp. reported
that mapping and sampling of its newly-optioned Las Margaritas project in Durango
has extended the strike of the main vein system to 3.5 Km, collecting grab
samples with assays of up to 73.7 gpt Au. The best mineralization is along a
1,750 m section where 15 of 25 samples assayed more than 1 gpt Au, and six of
those more than 5 gpt Au. “Gold mineralization occurs within druzy quartz
veins, veinlets and stockworks with up to 3% disseminated pyrite”, with variable
widths of up to two metres.
Evrim Resources Corp. along with
exploration partner Harvest Gold
Corp., released final results from the recently finished ten-hole drill
program at its Cerro Cascaron project in Chihuahua. Highlighted results comprise:
At Serpiente Dorada, 1.0 m @ 20.10 gpt Au, 22.5 gpt Au, within 6.5 m @ 3.29 gpt
Au, 6 gpt Ag; 11.5 m @ 0.48 gpt Au, 4 gpt Ag and 1 m @ 1.57 gpt Au, 1 gpt Ag.
At San Pedro, 4.8 m @ 1.02 gpt Au, 13 gpt Ag; 0.35 m @ 5.39 gpt Au, 24 gpt Ag;
2.4 m @ 0.98 gpt Au, 37 gpt Ag.
Sable Resources Ltd. released
results from two more drill holes collared at its Margarita project in
Chihuahua. Highlighted core length results comprise: 20.6 m @ 83 gpt Ag, 0.08%
Zn (or 102 gpt AgEq), including 5.1 m @ 222 gpt Ag, 0.47% Zn (or 252 gpt AgEq)
in one drill hole and 48.65 m @ 102 gpt Ag, 0.43% Zn, 0.1% Pb (or 130 gpt AgEq),
including 1.0 m @ 198 gpt Ag, 0.30% Zn, 0.18% Pb (or 222 gpt AgEq) and 2.85 m @
376 gpt Ag, 0.75% Zn, 0.28% Pb (or 428 gpt AgEq) and 2.6 m @ 156 gpt Ag, 3.09%
Zn, 0.72% Pb (or 351 gpt AgEq) in the other hole. All intercepts are between 47
and 98 m from the surface.
Kootenay Silver Inc. released
results from exploration at its Mecatona property in Chihuahua. Assays of 51 surface
samples on a 200 m by 400 m zone of pervasive skarn-altered Lower Cretaceous
turbidites of the Mezcalera Group returned an average of 110 gpt Ag, 1.7% Cu,
with 12 of the 51 samples grading >100 gpt Ag. “Mineralization associated in
the new zone is oxidized to assorted limonites with most of the copper
mineralization hosted in the limonites. Depth of oxidation remains unknown.
Mineralization occurs as a range of textures that includes bedding replacement,
fracture/stockworks and disseminations, patches and hairlines. Quartz veins are
not common with one dump sample showing anomalous gold (0.84 gpt), silver (373
gpt) and 16% lead and zinc. One location of unoxidized material, from an
underground working showed chalcopyrite, bornite, arsenopyrite, pyrrhotite,
galena, sphalerite in quartz and carbonate fracture/vein/gash system. The skarn
is all fine grained marked by dense hard white to greenish beddings with local
garnets and marble noted“.
Silver Spruce Resources Inc. informed it is currently defining shallow drill
targets for a 1,500 m program at its Pino de Plata project in Chihuahua. At El
Terrero, a target comprises a zone of disseminated epithermal mineralization in
igneous rocks within 15 hectares of strong argillic to advanced argillic
alteration, where high Ag and anomalous Au, Pb, Zn, Cu results have been
obtained. At Theodora, veins with high Ag and anomalous Pb, Zn, Cu are to be
tested, whereas the Santa Elena Gossan area is a replacement Ag-Pb-Zn-Cu target.
Azucar Minerals Ltd. reported
results from one more drill hole of its ongoing program at its El Cobre project
in Veracruz. The drill hole was collared on the Norte zone, where it cut 253.5
m @ 0.72 gpt Au, 0.30% Cu (from 373.50 to 627.00 m); including 64.5 m @ 1.1 gpt
Au, 0.40% Cu; and 44.5 m @ 1.34 gpt Au, 0.47% Cu and 13.0 m @ 2.04 gpt Au,
0.70% Cu. Other deeper intervals between 638 and 732 m comprise 14.65 m @ 0.73
gpt Au, 0.28% Cu, and 53.10 m @ 1.00 gpt Au, 0.40% Cu.
Riverside Resources Inc. disclosed
initial results from its recently staked Sandy project in Sonora. Sampling of
the structures in the strongly foliated granitic intrusive rocks returned gold
values of up to 38.8 gpt Au, associated to a set of felsic dikes. “Silicification
and minor quartz veining is noted associated with the structures and with
through-going vein mineralization. The wall rock associated with these
structures often shows sericitic and silica alteration”.
Sable Resources Ltd. Released assay
results from one more drill hole from the current drilling campaign at its Margarita
project in Chihuahua. The highlighted intervals comprise 12.50 m @ 63 gpt Ag, 0.14%
Zn, 0.05% Pb (or 73 gpt AgEq), including 4.80 m @ 126 gpt Ag, 0.24% Zn, 0.10% Pb, and a
second interval of 12.80 m @ 97 gpt Ag, 1.19% Zn, 0.36% Pb (or 176 gpt AgEq),
including 1.90 m @ 213 gpt Ag, 4.52% Zn, 1.81% Pb (or 529 gpt AgEq).
Torex Gold Corp. informed of the
payment of US$11.9 M on taxes from its mining activities in 2018 (El Limon-Los Guajes,
Excellon Resources Inc. reported financial
results for the last quarter and full year 2018. During the year Excellon had $24.3
M of revenue, producing silver at cash cost $9.48 per ounce and an AISC of $20.69
per ounce. Also during the year, at its Platosa mine in Durango, 57.5 K tonnes
were mined, 81 K tonnes processed (24 K tonnes from stockpiles) @ 391 gpt Ag,
3.88% Pb, 5.42% Zn, recovering 89.2% Ag, 79.4% Pb, 80.8% Zn, to produce 917.7 K
Oz Ag, 5.45 M Lb Pb, 7.89 M Lb Zn (or 1.93 M Oz AgEq). The company also
informed on a concentrate theft scheme from 2016 to October 2018 involving
material in transit from Miguel Auza in Zacatecas to the port in Manzanillo,
Guerrero. It is estimated that said scheme impacted revenues by approximately 10%
Impact Silver Corp. entered into a concentrate sales contract with
Samsung CT Corp. for off take from the Royal mines of Zacualpan, Estado de
Mexico. “Based on current production of 400 tonnes per
day, 2019-2020 sales of silver lead-zinc concentrate should top 800,000 ounces
silver with revenues over 95% attributable to pure silver (no equivalents)”.
Sonoro Metals Corp. intends to
undertake a non-brokered private placement with the aim of raising up to $650K
(Cerro Caliche, Sonora).
First Majestic Silver Corp. informed
it has extended its share repurchase program for another 12 months. The program
proposes to repurchase up to 5 M common shares, or 2.5% of the outstanding
shares of the company (Six operating mines in Mexico).
Solaris Copper Inc. closed a C$3.9 M
non-brokered private placement financing, with no fees or commissions paid (60%
interest on La Verde, Michoacan).
ON RESOURCES AND DEVELOPMENT
Almaden Minerals Ltd. informed of the
issuing of a Report on Corporate Social Responsibility describing the community-related
activities in which the company has engaged for over 15 years at the Ixtaca
project in Puebla. Also, an environmental permit (Manifestación de Impacto
Ambiental) has been submitted to Mexican authorities, including within it
topics like water usage, tailings process details and acid drainage evaluation.
VVC Exploration Corp. disclosed and updated
resource estimate for its Samalayuca property in Chihuahua. With a 0.30% Cu cut-off,
the indicated resources comprise 3.16 M tonnes @ 0.42% Cu and the inferred
resources 4.68 M tonnes @ 0.44% Cu, containing 13,375 tonnes Cu and 20,683
tonnes Cu respectively.
Gold Resource Corp. reported that
ongoing development work at its mirador mine (in its El Aguila property in Oaxaca)
crosscut 6 m of the Independencia vein, which assayed 992 gpt Ag, with the
opposite wall assaying 5 m @ 572 gpt Ag. Earlier drilling result of this area
included 13.3 m @ 1,055 gpt Ag and 2.70 m @ 1.67 gpt Au, 901 gpt Ag.
ON DEALS AND CORPORATE ISSUES
Silver One Resource Inc. entered
into an investor relations agreement with Strata-Star Group, LLC. “Strata-Star
will provide investor relations services to Silver One including communicating
with members of the financial community as well as shareholders”.
During the 4th week of the year (January 21st to January 27th, 2019), at least 20 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, CAMIMEX expressed it is in contact with diverse actors of the public administration to consolidate the international competitivity of the mining industry. ON EXPLORATION, In Chihuahua, Radius Gold staked the 9,600 ha. Rambler project, covering a 9 km trend of epithermal mineralization. In Sinaloa, Kootenay Silver released interesting surface sample results from its Copalito project. In Durango, Orex is to perform a VTEM airborne survey on the San Luis Del Cordero property. In Hidalgo, Prospero Silver initiated drilling at the Pachuca SE project, with funding by Fortuna Silver. ON MINING, Pan American, Argonaut, Gold Resource, Fresnillo, Sierra Metals and Americas Silver presented Q4 and full year 2018 production results (by the way, anyone has heard from Frisco on this regard?). Endeavour presented its 2019 production guidance. ON FINANCING, Premier Gold signed a credit agreement with Investec Bank as administrative agent for the lenders for a US$50 M credit facility. ON RESOURCES AND DEVELOPMENT, Endeavour updated its reserve and resource base, for a consolidated grand total of 132 M Oz Ag, 1.042 M Oz Au. Premier Gold presented high-grade intercepts from drilling at Mercedes, Sonora, where over 40,000 m of drilling were completed in 2018. Leagold is to produce 200-220 K Oz Au in 2019 at Los Filos, Guerrero. Azure Minerals presented a favorable scoping study for its Oposura project in Sonora. Impact Silver is defining extensions on veins at its Zacualpan property in Estado de Mexico. Excellon released high-grade results from surface exploration at its Platosa mine in Durango. Capstone filed on Sedar a technical report for Cozamin, Zacatecas. ON DEALS AND CORPORATE ISSUES, Prospero Silver announced the signature of the option agreement with Fortuna Silver on the Pachuca SE project.
ON MEXICO ISSUES
CAMIMEX (Cámara Minera de México), in a response to El Financiero, expressed that any modification to
the mining regulations has to take into account the wellbeing of the
communities and its environment. The organization, of which leading companies
like Peñoles, Grupo México and Minera Frisco are members, considers mining is
one of the most supervised sectors in the country, with a modern and robust
regulatory frame, following international standards, although areas of
opportunity can always be identified. “We
have approached diverse authorities on the public administration and found openness
to solve any pending issues and consolidate the international competitivity
that benefits the country development”.
Orex Minerals Inc. contracted Geotech Ltd. To perform a VTEM (Versatile
Time Domain Electromagnetic) airborne survey over its San Luis del Cordero
project in Durango. Old mine workings and mineralized showings wrap around a
Tertiary quartz-feldspar-porphyry intrusive. The helicopter-borne survey, with
accompanying horizontal gradiometer and radiometric surveys, is to identify
discrete conductive anomalies, as well as mapping lateral and vertical
variations in resistivity. The airborne survey will be conducted over a grid at
100 m line-spacing for approximately 275 line-km, with measurements every 2-3 m
along survey lines.
Prospero Silver Corp. has started
phase 2 drilling at its Pachuca Se project in Hidalgo. Fortuna Silver Mines
Inc. has an option to acquire up to a 70% interest in the 6,699 hectares project
(24 km SE from Pachuca) by spending a total of US$8 M and completing a
preliminary economic assessment (PEA), spending more than US$1 M in the first
year. A six-hole, 4,200 m program started to test a number of potential drill
targets. In a Fortuna funded program in early 2018, 1,800 m of drilling tested
three distinct targets, intercepting what is interpreted to be the upper parts
of a mineralized epithermal system.
Radius Gold Inc. staked a 9,600 ha
property called the Rambler project, in Chihuahua, some 20 km NW from Radius’s
Amalia project. Regional prospecting discovered epithermal mineralization in
veins, vein breccias and disseminated zones over a 9 km trend, where samples
with up to 16.5 gpt Au, 2,030 gpt Ag, 3.8% Cu, 13.9% Zn, 3.4% Pb were collected.
Saucito is the main target area, where a 500 x 70 m stockwork returned an
average of 177 gpt Ag on 31 samples. Other target areas with interesting rock
chip sample results include La Machomera (up to 7.3 gpt Au, 469 gpt Ag), La
India (up to 10.3 gpt Au, 16 gpt Ag), El Gringo (4.8 gpt Au, 3.8% Cu).
Kootenay Silver Inc. released
results from surface sampling and mapping at the Copalito Ag-Au project in
Sinaloa, same that covers an epithermal system with numerous veins 0.5-15 m in
width and up to 2 km in strike length. Sampling Highlights include 7.2 Gpt Au, 3,770
gpt Ag at the 5 Señores and Agua veins respectively; 8.2 gpt Au, 583 gpt Ag across
1.1 m on the 5 Señores vein; 401 gpt Ag across 5.3 m on 5 Señores vein; 532 gpt
Ag over 3.0 m and 306 gpt Ag over 4.9 m across the Agua vein; 17.4% Zn, 9.9% Pb,
0.52 gpt Au, 76 gpt Ag on a grab sample at Pillar vein and 5.1%, 1.6% and 1.5
Cu along the Cobriza vein. Of 117 rock samples collected, 29 returned silver
grades over 90 gpt, including 11 over 300 gpt and 6 over 500 gpt.
Pan American Silver Corp. announced preliminary operating results for the fourth quarter and full year 2018, including information from its operations in Mexico. At La Colorada in Zacatecas, 7.6 M Oz Ag, 4,400 Oz Au were produced during the year, at cash cost $2.02 per Ag Oz, whereas at Dolores in Chihuahua, 4.1 M Oz Ag and 136,600 Oz Au were produced at cash cost ($1.87) per Ag Oz. Pan American is planning to sustain 2,000 tonnes per day (tpd) throughput at La Colorada during 2019, and continue to explore and define the potential of the “significant skarn deposit discovered in 2018”. At Dolores the company plans to ramp-up underground production rates to 1,500 tpd and sustain the 20 K tpd throughput rate to the heap leach from the pit.
Argonaut Gold Inc. informed on Q4 production and yearly results for 2018, including numbers from its Mexican operations. At El Castillo Complex, in Durango, 37,977 GEOs (Gold equivalent ounces) were produced during the quarter, 18,984 from El Castillo mine and 18,993 from the San Agustin mine. At La Colorada, in Sonora, 13,681 Oz Au were produced during the same period. For the year, El Castillo Complex produced 117,126 GEOs and La Colorada 47,991 GEOs. Argonaut plans to invest $50-$60 M in capital expenditures during 2019, with $15 M allocated to the expansion of crushing and leaching facilities at San Agustin to increase the rate of production from 20K tpd to 30 K tpd.
Gold Resource Corp. reported 2018 year-end and fourth quarter production results from their El Aguila mining operations in Oaxaca. During the year Gold Resource produced 26,838 Oz Au, 1.67 M Oz Ag, 1,652 tonnes Cu, 7,280 tonnes Pb and 19,808 tonnes Zn. During the fourth quarter 7,974 Oz Au and 330.6 K Oz Ag were produced.
Fresnillo PLC. released 4Q and full year 2018 results, with a consolidated production of 61.8 M Oz Ag and 923 K Oz Au for the year and 15.5 M Oz Ag, 232 K Oz Au for the quarter. Lead (53,181 tonnes) and Zinc (88,520 tonnes) production amounted to 19.9 M Oz AgEq. “The cumulative drilling for the year at our operating mines and exploration projects was 579,000 and 346,000 metres respectively. Resources and reserves (in the case of the operating mines) are presently in audit by SRK and the results of which will be disclosed in the first quarter of 2019 with our Preliminary results. Resources were increased at the Guanajuato and San Juan projects, while mapping identified new targets at the Fresnillo and Herradura districts, and a geophysical survey detected areas for follow up in the San Julián district. Further to this, and for the first time in the Company’s history, drilling began in Chile. Exploration teams are working out of the Hermosillo, Chihuahua, Zacatecas, Toluca, Lima-Peru and Santiago de Chile offices in selected areas of favorable silver-gold belts in Mexico, Peru, Chile and Argentina”. (Note from editor: the mining community is waiting for Frisco to produce reports like this one).
Silver Corp. announced its consolidated silver and gold
production guidance for 2019, to be 4.4-5.2 M Oz Ag, 46.2-52.2 K Oz Au, or
8.1-9.4 M Oz AgEq. “Cash costs, net of gold by-product
credits, are expected to be $8.50-$9.50 per oz of silver produced in 2019.
Consolidated cash costs on a co-product basis are anticipated to be $11.50-$12.50
per oz silver and $900-$1,000 per oz gold”. The final dumps
and tailings permit at Terronera is needed to make a development decision. The
company plans to drill 24,500 m during 2019 in Guanaceví, Bolañitos, El Cubo,
El Compas, Terronera, Parral and Guadalupe y Calvo.
Metals Inc. Disclosed Q4 and full year 2018 results, including figures from its
Mexican operations. The Bolivar mine in Chihuahua processed (at 2,948 tonnes
per day, or tpd) in the year 1 M tonnes of ore @ 0.95% Cu, 18 gpt Ag, 0.17 gpt
Au, with recoveries of 79.9% Cu, 77.1% Ag, 68.5% Au, to produce 17.23 M Lb Cu,
452 K Oz Ag, 3,968 Oz Au. For the quarter, 272.6 K tonnes were processed (3,116
tpd) @ 0.94% Cu, 15 gpt Ag, 0.15 gpt Au, to produce 4.23 M Lb Cu, 128 K Oz Ag,
1,163 Oz Au. At Cusi, also in Chihuahua, 186.9 K tonnes were processed (534
tpd) during the year at a grade of 140 gpt Ag, 0.16 gpt Au, 0.36% Pb, 0.40% Zn,
recovering 83.1% Ag, 39.1% Au, 79.9% Pb, 4.3% Zn, to produce 700 K Oz Ag, 372
Oz Au, 1.19 M Lb Pb, 937 K Lb Zn. During the last quarter Cusi processed 58.3 K
tonnes (666 tpd) @ 111 gpt Ag, 0.16 gpt Au, 0.41% Pb, 0.49% Zn, to produce 171
K Oz Ag, 124 Oz Au, 421 K Lb Pb, no Zn.
Silver Corp. announced production and operating results for
2018, including figures from its Mexican operations. At Cosalá, in Sinaloa,
544.5 K tonnes were milled @ 47 gpt Ag, to produce 448.1 K Oz Ag, 34.22 M Lb Pb,
12.86 M Lb Zn, or 4.16 M Oz AgEq at cash cost ($37.95) and AISC ($19.69).
Premier Gold Mines Ltd. Announced the
signing of a definitive credit agreement with Investec Bank PLC, as administrative agent for the lenders of
a US$50 M secured term credit facility. Premier also announced financing
arrangements with OMF Fund II SO Ltd.
and Orion MineFinance Fund II LP for aggregate
gross proceeds of US$18.2 M. (Mercedes, Sonora).
ON RESOURCES AND DEVELOPMENT
Endeavour Silver Corp. updated its reserve and resource base for its mines and projects for 2018. Consolidated reserves and resources, including inferred resources for its seven units comprise 132 M Oz Ag and 1.042 M Oz Au, as displayed on the following table:
Premier Gold Mines Ltd. provided an
update on its exploration programs, including information from its Mexican
operations. At Mercedes in Sonora, positive exploration results include 18.3 m
@ 38.3 gpt Au, 26 gpt Ag on the Aida vein, and 22.0 m @ 36.6 gpt Au, 171 gpt Ag
at Rey de Oro. During the past year 280 brownfield and greenfield holes were
completed representing 40,720 m of drilling.
Leagold Mining Corp. announced its
intention to produce 200 K to 220 K Oz Au during 2019, at an AISC of $925 to $925-975
at Los Filos, in Guerrero. The proven and probable reserves at the property
stand at 111.33 M tonnes @ 1.22 gpt Au, containing 4.363 M Oz Au, and 114 K Oz
Au on the leach pad inventory.
Minerals Ltd. Presented its quarterly report for the period
ended on December 2018. The company highlighted the Scoping Study for the Oposura
project in Sonora, with an EBITDA of A$237 M, pre-tax NPV of A$112 M, pre-tax
IRR of 76%, average life of mine cash cost US$0.42 per Zn Lb and a
pre-production CAPEX of A$69.9 M. At the Alacrán project in Sonora, Teck
completed its Phase 2 drilling program comprising 10.537 m in 21 holes, with
focus on testing porphyry copper potential at Cerro Alacrán, with assays
pending. At Oso Negro, also in Sonora, sampling returned more high-grade
mineralization, with the best sample returning 15.5 gpt Au, 1,935 gpt Ag, 5.9% Zn,
4.6% Pb. At Sara Alicia, also in Sonora, the company has been showing the
property to potential partners or buyers.
Impact Silver Corp. hired a
consultant to define extensions to the vein systems on its Zacaualpan property
in Estado de Mexico. Work to date has defined on strike extensions to the San
Ramon silver vein system through geological work and soil sampling, and better
characterizing the potential for bulk mineable ore in the Santa Teresa area.
Resources Inc. released high-grade results from ongoing surface
exploration at its Platosa mine in Durango. Highlighted intervals comprise 0.9
m @ 283 gpt Ag, 9.8% Pb, 0.3% Zn; 5.6 m @ 383 gpt Ag, 8.0% Pb, 0.2% Zn; 2.5 m @
406 gpt Ag, 3.7% Pb, 0.2% Zn; 0.6 m @ 2,060 gpt Ag, 7.8% Pb, 9.1% Zn; 5.0 m @ 0.28 gpt Au, 968 gpt Ag, 9.4% Pb,
20.2% Zn; 4.8 m @ 1,127 gpt Ag, 8.4% Pb, 10.5% Zn.
Mining Corp. filed on SEDAR a NI-43-101 compliant report titled
“NI 43-101 Technical Report on the Cozamin Mine,
ON DEALS AND CORPORATE ISSUES
Prospero Silver Corp. announced the
signature of the previously disclosed option agreement with Fortuna Silver Mines Inc. on the
Pachuca SE project. “On December 10, 2018 Prospero
announced that Fortuna Silver Mines Inc. (“Fortuna”) exercised its
right to be granted an option to acquire up to a 70-per-cent interest in the
Pachuca Southeast project located close to the historic mining city of Pachuca
in Hidalgo state, Mexico, by spending a total of $8-million (U.S.) in
qualifying expenditures and completing a preliminary economic assessment, with
a minimum spend of $1-million in the first year” (Pachuca SE, Hidalgo).
During the 46th week of the year (November 12th to November 18th, 2018), at least 22 press releases were announced by companies working in Mexico. Radius, Prize Mining, Silver Viper, Riverside and Golden Minerals released advances in exploration. Sierra Metals, Mag Silver, Leagold and Starcore released quarterly reports. Telson released news on metallurgy. No financing was reported this week. Odyssey and Minera Alamos reported on advances at its properties, while Leagold presented an updated resource base. Pan American Silver and Tahoe agreed on Tahoe’s acquisition by PAS. Golden Minerals acquired a property. ON MEXICO ISSUES, CAMIMEX released figures on copper production in Mexico. ON EXPLORATION, In Sonora, Silver Viper released interesting results from the Virginia project in Sonora. Riverside informed on four new targets at its Cecilia project. In Chihuahua, Golden Minerals released rock sampling results from its Navegantes project. Radius finished drilling at the Amalia project, results pending. In Coahuila, Prize Mining released drill results from the Manto Negro project. ON MINING, Sierra Metals, Mag Silver, Leagold Mining and Starcore presented quarterly reports. Telson is investing on metallurgical studies at its Campo Morado mine in Guerrero. ON FINANCING, No relevant news. ON RESOURCES AND DEVELOPMENT, Odyssey Marine Exploration updated on the Don Diego project offshore Baja California Sur. Minera Alamos presented mapping and sampling results on the Divisadero zone of its Santana project in Sonora. Leagold announced a significant increase in open pit reserves at its Los Filos mine in Guerrero. ON DEALS AND CORPORATE ISSUES, Goldplay lost its director, Laura Diaz, as she has been appointed as General Director of Mines in Mexico. Pan American Silver entered into an agreement to acquire Tahoe Resources. Golden Minerals optioned the Navegantes property in Chihuahua.
ON MEXICO ISSUES
According to CAMIMEX (in a note from opportimes) copper production in Mexico has been stable. During 2017 the world´s copper production was 19.7 M tonnes, a 2% decrease from 2016. Mexico produced 742 K tonnes of copper in 2017, against 766 K tonnes produced in 2016, a 3.1% decrement. Sonora produces over 84% of the country’s total, with Zacatecas and San Luis Potosi following suit. Coming additions to production include El Boleo in Baja California Sur, which is to double its production to 28.5 tonnes; Media Luna in Guerrero is to add 21 K tonnes in 2022 and El Pilar project in Sonora could add 36 K tonnes in 2020.
Radius Gold Inc. completed drilling at its Amalia project in Chihuahua. Nine holes, for a total of 1,909 m were diamond drilled in a program funded by Pan American Silver under a JV. The Campamento, Guadalupe, San Pedro and Dulces Nombres targets were tested across a strike length of 1.8 Km “following the trace of a large regional fault and associated surficial epithermal gold and silver mineralization”. Results pending.
Prize Mining Corp. released results from the first four holes at the Manto Negro stratiform copper project in Coahuila. Core length drill intersections comprise 4.40 m @ 1.02% Cu, 28 g/t Ag; 3.55 m @ 1.69% Cu, 28 g/t Ag at El Granizo; 4.10 m @ 0.88% Cu, 49 g/t Ag; 3.40 m @ 1.58% Cu, 122 g/t Ag at El Pilar Grande. At El Rincon, 1.6 Km north from El Pilar Grande, rock channel sampling averaged 3.41 m @ 2.13% Cu, 63 g/t Ag.
Silver Viper Minerals Corp. released the first batch of analyses from its initial drilling program at La Virginia project, in Sonora. Results have been received for five of the eight holes from which samples were submitted, with relevant intervals comprising: 9.70 m @ 1.20 g/t Au, 58 g/t Ag (2.03 g/t AuEq), including 2.72 m @ 3.34 g/t Au, 133 g/t Ag (5.24 g/t AuEq); 12.6 m @ 1.04 g/t Au, 79 g/t Ag (2.17 g/t AuEq), including 3.85 m @ 1.88 g/t Au, 152 g/t Ag (4.05 g/t AuEq); 0.7 m @ 2.25 g/t Au, 49 g/t Ag (2.95 g/t AuEq); 8.50 m @ 1.26 g/t Au, 55 g/t Ag (2.05 g/t AuEq) including 1.89 m @ 2.43 g/t Au, 81 g/t Ag (3.58 g/t AuEq); 0.94 m @ 0.96 g/t Au, 49 g/t Ag (1.66 g/t AuEq). The reported holes were collared on Las Huatas zone, with the first two testing parallel veins to the main trend, whereas the last three tested the previously identified main trend, generally intercepting mineralization at expected depths, widths and grades. “The intercepts are characteristic of previous hits on the project, where gold and silver bearing quartz veining/stockwork/breccia fill is often hosted in close proximity to the fractured contact between andesites of the lower volcanic succession and pre-mineral dacite dykes. Mineralization is hosted by both lithologies with the intervals often exhibiting strong silica overprint”.
Riverside Resources Inc. informed rock sampling and mapping defined four new targets at its Cecilia project in Sonora. The recent work was conducted on a 50 square km area, checking on previous soil sampling results. The Casa de Piedra, Los Llanos, Cruz and Cruz II targets were outlined, forming structural corridors up to 2 km long of quartz veins (locally banded, locally bearing calcite), anastomosing quartz veins, veins and quartz stockworks that can be up to 30 m in width and locally up 100 m in width. Alteration assemblages in these zones include sericite, silica, kaolinite and buddingtonite. All these areas display anomalous gold values, of up to 2.6 g/t Au.
Golden Minerals Co. released rock sampling results from its recently optioned Navegantes project in Chihuahua. Navegantes covers two vein systems, Navegantes and San Pedro‐San Francisco) as well as a number of smaller subsidiary veins, with mineralization occurring as iron oxides within quartz veins ranging up to 2 m in width and 800 m in length. Highlighted samples comprise 1.0 m @ 1,585 g/t Ag; 1.45 m @ 759 g/t Ag; 1.1 m @ 639 g/t Au; 2.1 m @ 472 g/t Ag.
Sierra Metals Inc. presented its third quarter 2018 financial report. The company, that has two mines in Mexico and one in Peru, saw its EBITDA reduced 3% in a yearly basis to $18.8 M, due to the decrease in metal prices. At the end of the period, Sierra’s net debt was $30.7 M, and its cash and cash equivalents $30.7 M. At Bolivar in Chihuahua, quarter on quarter production was affected by heavy rains, but year on year production was still increased, with the goal of achieving 3,600 tonnes per day (tpd) in Q1 2019. At Cusi, in Chihuahua, the mill continues to run at the 650 tpd capacity. The additional mill being installed will increase capacity to 1,200 tpd early in 2019. Cash cost per CuEq Lb was $1.68 and AISC $2.35 per CuEq Lb at Bolivar, while at Cusi cash cost was $14.11 per AgEq Oz and AISC $19.08 per AgEq Oz. Surface drilling at Bolivar was 8,332 m, while 2,176 m were drilled from the underground mine. At Cusi, 6,569 m were drilled from the surface.
Mag Silver Corp. released its Q3 2018 financial results. At Juanicipio, in Zacatecas, over 16 km of underground development have been achieved, 32% of which was realized on the last nine months. Mag advanced $8.47 M to Minera Juanicipio to fund its 44% share of ongoing development. Fresnillo has reiterated production is to start by mid-2020. Exploration during the quarter completed 48 holes, for 46,060 m of drilling focused to convert inferred resources to indicated, and to trace the Deep Zone laterally and to depth. The company ended the period with cash and cash equivalents of $141.8 M.
Leagold Mining Corp. reported 2018 third quarter operating and financial results. At Los Filos in Guerrero, production totaled 42,617 Oz at AISC of $1,060 per AuOz by mining 7.4 M tonnes from the open pit at a grade of 0.65 g/t Au, and 172 K tonnes @ 6.26 g/t Au.
Starcore International Mines Ltd. reported production results for its second quarter of fiscal 2019 at its San Martin mine in Queretaro. During the quarter (ended October 31st), 81.4 K tonnes were milled @ 1.4 g/t Au, 43.5 g/t Ag, recovering 86.9% Au, 58.7% Ag, to produce 4,050 AuEq Oz. The Altiplano processing facility was put on maintenance and the sale of the asset is being considered.
Telson Mining Corp. announced its intention to retain Glencore Technology to test its patented metallurgical approach to increase zinc recoveries and zinc concentrate grade at its Campo Morado mine in Guerrero.
No Relevant News.
ON RESOURCES AND DEVELOPMENT
Odyssey Marine Exploration Inc. commented on its Q3 2018 report that a plea has been presented at the Tribunal Federal de Justicia Administrativa to oblige SEMERANAT (the Mexican environmental agency) to produce the requested environmental permit on the Don Diego offshore phosphate project in Baja California Sur.
Minera Alamos Inc. reported that mapping and surface sampling on the new Divisadero porphyry discovery at its Santana project, in Sonora. The work delineated a 200 x 300 m surface expression (still open) of the 95.7 m @ 0.85 g/t Au, 9.8 g/t Ag, 0.33% Cu drill intercept of porphyry style mineralization of a previous press release. Over 50% of 66 rock samples collected assayed between 0.1 and 2.2 g/t Au, with mineralization appearing to remain open under thin soil cover to the north and south. The Divisadero zone is 200 m north of the Nicho Norte breccia pipe.
Leagold Mining Corp. announced a significant increase in open pit mineral reserves at its Los Filos mine in Guerrero. Proven and probable reserves grew 122% compared with the 351 K Oz Au of December 2017, to reach 780 K Oz Au, contained in 40.5 M tonnes @ 0.60 g/t Au.
ON DEALS AND CORPORATE ISSUES
Goldplay Exploration Ltd. congratulated “its director, Ms. Laura Cristina Diaz Nieves, on her appointment as the next General Director of Mines in Mexico. As a result of this appointment, Ms. Diaz Nieves is required to relinquish her position as director of the Company at the end of this month” (San Marcial, Sinaloa).
Pan American Silver Corp. and Tahoe Resources Inc. entered into a definitive agreement for Pan American to acquire all of the outstanding shares of Tahoe, creating the world’s premier silver mining company. “Tahoe shareholders may elect to receive US$3.40 in cash or 0.2403 Pan American shares for each Tahoe share, subject in each case to pro-ration based on a maximum cash consideration of US$275 million and a maximum number of Pan American shares issued of 56.0 million, totaling US$1,067 million (the “Base Purchase Price”). The Base Purchase Price represents a premium of 34.9% to Tahoe’s volume weighted average price (“VWAP”) for the 20-day period ending on November 13, 2018……. At closing, existing Pan American and Tahoe shareholders will own approximately 73% and 27% of Pan American, respectively” (La Colorada, Zacatecas; El Escobal, Guatemala).
Golden Minerals Co. announced the acquisition of the 521 hectares, covered by six concessions, Navegantes property in Chihuahua. Golden holds an option to purchase six concessions totaling 521 hectares by paying $0.4M over three years.
During the 44th week of the year (October 29th to November 4th, 2018), at least 26 press releases were announced by companies working in Mexico. Prize Mining, Southern Silver, Kootenay, Excellon, Colibri, Golden Minerals and Galore released advances in exploration. Consolidated Zinc and Telson released news on mining, while Endeavour, Excellon and Great Panther reported Q3 financial results. Aloro Mining and Sonoro Metals reported news related to financing. Goldplay and SilverCrest reported on advances on its properties, while Silver Bull presented an updated resource base. Marlin Gold and Golden Reign advance on their acquisition agreement and Colibri entered into a purchase agreement with Yaque Minerals. Golden Minerals is acquiring the Yoquivo property in Chihuahua. ON MEXICO ISSUES, CAMIMEX presented figures on the state of the mining industry in Mexico. ON EXPLORATION, In Sonora, Colibri described its El Mezquite and Jackie projects. In Chihuahua Golden Minerals released high-grade results from its Yoquivo project, and Kootenay presented interesting results from early exploration on its Mecatona project. In Coahuila, Prize Mining is doing regional exploration on its Manto Negro project. In Durango, Southern Silver presented significant results from drilling on its CLM West claim group. In Zacatecas, Galore has received permit to drill on its El Alamo claim. ON FINANCING, Sonoro has completed a private placement for $500 K. Aloro Mining completed its placement for gross proceeds of C$800 K. ON RESOURCES AND DEVELOPMENT, Goldplay reported results from sampling historical core at its San Marcial project in Sinaloa. Silver Bull presented an updated resource on its Sierra Mojada project in Coahuila. SilverCrest presented high-grade results from infill drilling at its Las Chispas project in Sonora. A PEA is to be completed for a 1,000 to 1,500 tonne/day underground operation. ON DEALS AND CORPORATE ISSUES, Golden Reign, Marlin Gold and Sailfish Royalties continue to advance its purchase agreement. Colibri Resource is to acquire Yaque Minerals S.A. de C.V. owned by OnTop Capital. Golden Minerals holds an option to acquire the Yoquivo property in Chihuahua.
ON MEXICO ISSUES
In AIMMGM’s past conference in October, Fernando Alanis from CAMIMEX (Cámara Minera de México) presented figures from the mining industry in Mexico. Mineral royalties collected US$220 M in 2017, adding up to US$631 M on the last four years. An additional US$248 M were invested by companies in the communities and environment where they are located. Just in mining duties over concessions amounted to US$132.9 M. In the attractiveness index for investment, Mexico has gone from the 11th place in 2011 to the 44th place in 2018. At the same time our direct competitors for investment in the mining industry are doing better, Peru passed from the 39th to the 19th position, and Chile from the 6th to the 8th position. Points suggested to make of Mexico a mining country include improvements in security, a better infrastructure (railways, ports), certainty on land rights, a common ground with other mining countries in fiscal terms, administrative efficiency in the application and issuing of mining concession titles and certainty and transparency in the timely granting of permits.
Prize Mining Corp. engaged a consultant to compile a GIS database for a regional exploration program on its 17,659 ha Manto Negro project in Coahuila. The 3,000 m drill program continues with its focus on the Granizo and Pilar Grande areas.
Southern Silver Exploration Corp. reported drill results from its CLM West claim group, adjacent to its Cerro Las Minitas project in Durango. One of three holes intercepted 3.0 m @ 168 g/t Ag, while the other two returned strong (up to 0.1%) arsenic and antimony anomalies. “The mineralization represents the first significant silver intercept identified on the CLM West claim group where drilling is targeting new Ag-Au epithermal systems”.
Kootenay Silver Inc. staked 2,857 ha in Chihuahua, creating the Mecatona project. The Ag dominant epithermal system is hosted in veins and breccias, with one anomalous structure running for more than 1.7 km, and another zone hosting stockworks and quartz veinlets in an 80 m wide argillic alteration zone. Results from 78 samples collected at the property are as high as 735 g/t Ag, 6.94 g/t Au, 3.5% Pb, 8.0% Zn.
Excellon Resources Inc. received title to concessions that increases its land position to over 45,000 hectares on its consolidated “Evolución” property, within the Miguel Auza district in Durango, along strike to HECLA’s San Sebastian mine. As announced in previous press releases, initial drilling has already shown broad mineralized intersections with anomalous Au, Ag, Pb, Zn, “including discrete higher‐grade zones of carbonate veining, bladed calcite and silica with galena, sphalerite and pyrite”.
Colibri Resource Corp. described the El Mezquite and Jackie projects in Sonora, its new properties through the acquisition of Yaque Minerals S.A. de C.V. from On Top Capital Ltd. The 180 hectares Mezquite project contains an alteration zone 2 km by 1 km , within which are at least four zones of sulfide oxidation related to contacts with a silicified feldspar porphyry. Assay results from 321 rock chip samples returned 42 samples over 0.1 g/t Au, averaging 0.74 g/t Au and up to 3.41 g/t Au, 198 g/t Ag. The 1,130 ha Jackie project is 2 km south of El Mezquite, and abuts to the east with the Santana project, owned by Minera Alamos.
Golden Minerals Co. released high-grade results from sampling at its Yoquivo project in Chihuahua. Highlighted results comprise 6 m @ 5.9 g/t Au, 937 g/t Ag; 6 m @ 1.7 g/t Au, 399 g/t Ag from the Pertenencia vein. 4 m @ 2.3 g/t Au, 489 g/t Ag from the Central breccia zone. 2.9 m @ 1.7 g/t Au, 345 g/t Ag from the San Francisco vein. To date 756 samples have been collected, identifying a series of low-sulfidation quartz veins and breccias. A regional exploration program was launched to search for additional veins.
Galore Resources Inc. has been granted permits to begin a 12-hole, 3,000 m diamond core drill program at its El Alamo claim in Zacatecas. El Alamo consists of Cretaceous sediments, mostly limestone with some siltstone and chert, and major faults bounding the project. Alteration and mineralization are represented by silicification and iron-oxide bodies after sulfides. Some of the higher grade gold values are associated with extensively iron-oxide jasperoid breccias. A shallow drill percussion camping collared 35 holes in 2012, and defined a 500 long by 200 wide target zone.
Consolidated Zinc Ltd. presented its September 2018 quarterly activities report. The Group entered a 12 month toll treatment and offtake purchase agreement with Grupo Mexico to treat its ore at the Santa Eulalia’s concentrator plant, with mining at the Plomosas mine in Chihuahua beginning on September 13th 2018. A detailed costing study (DCS) was completed and incorporated into a bankable feasibility study (BFS). “During the quarter the Mexican Environmental Authority (PROFEPA) provided the Company with an MIA Exception (EPA exception) for the mine and processing plant area”. Cash balance at the end of the period was $0.61 M.
Telson Mining Corp. reported concluding a renewable power purchase agreement for its Campo Morado mine in Guerrero. The ten-year agreement sets the price for consuming 42.00 GW per year at a price that is 32% lower than the last nine-month average price paid at the site.
Endeavour Silver Corp. reported third quarter 2018 financial results. During the period silver production (1.43 M Oz) increased 13% and gold (12,968 Oz) decreased by 5%, with a silver equivalent production of 2.4 M Oz, and the Terronera pre-feasibility study was completed with improved project economics. On the financial side a net loss of $5.5 M was recorded, with EBITDA decreasing 8% to $5.6 M, mine operating cash flow decreased 20% to $9.6 M, cash cost rose to $8.86 per Oz Ag (net of gold credits) and All-in sustaining cost fell to $16.14 per Oz Ag, with a working capital of $57.4 M, whilst $5.6 M were raised through ATM financing.
Excellon Resources Inc. reported financial results for the third quarter 2018. During the period 10,974 of ore were produced, 17,907 tonnes processed (ore and stockpile), grading 416 g/t Ag, 3.47% Pb, 4.33% Zn (for ore) and 151 g/t Ag,1.36% Pb, 1.45% Zn (stockpile), recovering 89.9% Ag, 74.2% Pb, 78.2% Zn to produce 171.2 K Oz Ag, 824 K Lb Pb, 1,005 K Lb Zn. Revenue was $2.6 M ($7.6 M a year earlier) for a gross loss of $3.5 M from operations, cash cost of $29.94 per Ag Oz and All-in sustaining cost of $44.02 per Ag Oz. Financial results were impacted by lower production, lower by-product prices and associated price adjustments. Management changes were made at the Platosa mine, and now production and development rates have increased.
Great Panther Silver Ltd. presented third quarter 2018 financial results. During the period 92.9 K tonnes were milled to produce 448.8 K Oz Ag, 4,737 Oz Au (adding to 1.023 M Oz AgEq) at cash cost $12.79 per Ag Oz ($13.59 per AgEq Ag Oz), all-in sustaining cost $19.74 ($16.56 per AgEq Oz). The revenue was $11.7 M, with a net loss of 3.642 M, EBITDA of $(3.679) and a networking capital at end of period of $57.9 M. Lower metal prices, lower production levels and a large concentrate load that could not be shipped before the end of the period impacted on the lower results.
Aloro Mining Corp. closed a non-brokered private placement for gross proceeds of C$800 K. Agnico Eagle, which owns 8.7% of Aloro shares, bought half the issued shares. (Los Venados, Sonora).
Sonoro Metals Corp. completed a non-brokered private placement, for gross proceeds of $500 K (Cerro Caliche, Sonora).
ON RESOURCES AND DEVELOPMENT
Goldplay Exploration Ltd. reported results from sampling historical drill core from its San Marcial project in Sinaloa. These results are said to support the open pit potential for the historical NI-43-101 resource at the property. Highlighted results comprise 47.8 m (TW) @ 93 g/t AgEq (including 17.3 m @ 160 g/t AgEq); 42.0 m @ 61 g/t AgEq (including 24.8 m @ 79 g/t AgEq); 9.4 m @ 126 g/t AgEq.
Silver Bull Resources Inc. provided an updated NI43-101 resource report for the Sierra Mojada project in Coahuila. The open pit resource includes a high grade zinc zone of 13.5 M tonnes @ 11.2% Zn and a high grade silver zone with 15.2 M tonnes @ 114.9 g/t Ag. The total measured and indicated resources 70.4 M tonnes @ 38.6 g/t Ag, 3.4% Zn containing 5.354 billion pounds zinc and 87.4 M ounces silver.
SilverCrest Metals Inc. is to complete a preliminary economic assessment (PEA) for Las Chispas project in Sonora. A 1,000 to 1,500 tonne per day underground mining operation is being considered, with a counter-current decantation facility and Merrill Crowe recovery circuit similar to the nearby Santa Elena and Mercedes mines. Cyanidation with a possible add-on flotation circuit followed by intense leaching is being evaluated for the higher-grade ore, to raise the 86% Ag, 98% Au recovery with standard cyanidation only. SilverCrest is proceeding with the construction of a 500 m long, 4.5 m wide, 4.0 m high decline, and drifting 600 to 800 m along the mineralized structure to collect information on vein grade, width continuity, grade reconciliation, mineability and bulk sampling.
SilverCrest Metals Inc. reported the best drill intercept to date for its Las Chispas project in Sonora. Results from 7 drill holes from the in-fill program were released, with highlighted intervals (TW) comprising 9.9 m @ 14.4 g/t Au, 2,132 g/t Ag (this is the best intercept to date, including 4.5 m @ 30.3 g/t Au, 4,498 g/t Ag); 3.8 m @ 6.78 g/t Au, 1,090 g/t Ag; 3.5 m @ 33.06 g/t Au, 2,092 g/t Ag; 11.1 m @ 3.99 g/t Au, 580 g/t Ag; 5.1 m @ 4.16 g/t Au, 197 g/t Ag; The weighted average for the five holes on the Area 51 is 6.0 m @ 11.41 g/t Au, 1,369 g/t Ag. A total of 351 holes have been collared, for 94,735 m of core, with 119 drill intercepts grading more than 1,000 g/t AgEq.
ON DEALS AND CORPORATE ISSUES
Sailfish Royalty Corp. announced its shareholders voted in favor of the restructuring of the company’s gold stream on the San Albino project. The stream restructuring is a condition to the closing of the transaction in which Golden Reign Resources Ltd. will acquire all issued shares of Marlin Gold Mining Ltd. (Trinidad, Sinaloa).
Marlin Gold Mining Ltd. shareholders voted in favour of a special resolution to approve the plan of arrangement and certain connected transactions, pursuant to which Golden Reign Resources Ltd. (“Golden Reign”) will acquire all of the issued and outstanding shares of Marlin (Trinidad, Sinaloa).
Golden Reign Resources Ltd. and Marlin Gold Mining Ltd. have been granted the final court order from the Supreme Court of British Columbia approving the plan of arrangement pursuant to which Golden Reign will acquire all of the issued and outstanding common shares of Marlin (Trinidad, Sinaloa).
Colibri Resource Corp. entered into a share purchase agreement with OnTop Capital Ltd. to purchase all issued and outstanding shares of Yaque Minerals S. A. de C.V., a wholly owned subsidiary of OnTop. Yaque assets consist of El Mezquite and Jackie mineral exploration properties close to the Santana project owned by Minera Alamos in Sonora. “As consideration for the Transaction, Colibri has agreed to issue a convertible debenture in the amount of $1 million CDN bearing an annual interest rate of 2.5% which is convertible at any time, in whole or in part, over the next 5 years into common shares of Colibri at $0.20 per share for a total of up to 5 million shares”.
Golden Minerals Co. holds an option to purchase the six concessions that comprise the 2,367 hectares Yoquivo property in Chihuahua, for payments totaling $0.5 M over four years and subject to a 2% NSR royalty.
Vancouver, British Columbia, October 31, 2018 Telson Mining Corporation (“Telson” or the “Company”) (TSX-V – TSN, OTC Pink – SOHFF, Frankfurt – TSGN (formerly SQ82)) is pleased to report concluding a renewable power purchase agreement “Green Energy
Agreement” for Campo Morado mine.
Vancouver, B.C. – Santacruz Silver Mining Ltd. (TSX.V:SCZ) (the “Company” or “Santacruz”) reports that the Company has entered into a services agreement (the “Agreement”) with Carrizal Mining, S.A. de C.V. (“Carrizal”) pursuant to which Santacruz will provide to Carrizal certain mine development, metallurgurical and geological consulting services as well as other administrative services. The Agreement is open ended but management expects it will remain in force until at least the end of 2018. As consideration for the services Carrizal will make monthly payments to Santacruz of approximately US$1.1 million. Santacruz intends to use the funds for working capital purposes.