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

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By Jorge Cirett                                             

During the 21st week of the year (May 22nd to May 28th, 2023), 15 companies working in Mexico posted news releases. Four companies informed on exploration on their properties, two companies informed on Q1 2023 or full-year 2023 production/financial results. One company announced the granting of share options to directors, officers and consultants. Five companies released drilling results on their advanced properties in Durango, Chihuahua, Sinaloa, and Guerrero. Two more companies informed on the acquisition/sale of projects. ON MEXICO ISSUES, no relevant news. ON EXPLORATION, in Sonora, Aztec Minerals completed a surface exploration program at Cervantes; Infinitum copper started drilling at La Adelita. In Durango, Silver Dollar is organizing the database of the Nora project. In Oaxaca, Vortex Metals initiated surface geological work at Riqueza Marina. ON MINING, Impact Silver and Guanajuato Silver released Q1 2023 production reports. ON FINANCING, Silver Viper granted incentive stock options to directors, officers and consultants. ON RESOURCES AND DEVELOPMENT, Avino Silver released results from drilling at the Avino mine in Durango. Heliostar Metals reported drilling results from the high-grade portion of the Ana Paula deposit in Guerrero. Capitan Mining provided an exploration update on the Cruz de Piedra project in Durango. Prime Mining reported drilling results from Los Reyes in Sinaloa. Discovery Silver released results from the feasibility study drilling at Cordero, in Chihuahua. GR Silver Mining released results from step-our holes at San Marcial, which is part of the Plomosas project in Sinaloa. ON DEALS AND CORPORATE ISSUES, Tarachi Gold closed the sale of the Magistral tailings project in Durango. Silver Dollar completed the acquisition of the La Joya project in Durango. ON SOCIAL RESPONSIBILITY, Torex Gold released its 2022 ESG performance report.

ON MEXICO ISSUES

  • No relevant News.

ON EXPLORATION

  • Aztec Minerals Corp. received sampling results and completed its phase 1 surface exploration program at Cervantes, in Sonora. Detailed geological mapping and continued chip channel sampling of exposed road cuts were carried out. The “surface road cut sampling and detailed geologic mapping has verified the strong relationships found between the quartz feldspar porphyritic intrusive, phyllic alteration and gold mineralization… Quartz veinlet intensity mapping shows strong correlation to the drill hole gold grade-thickness”. The phase 2 exploration program comprises a reverse circulation drilling campaign to expand the California target in all directions. To date Aztec has competed over 10,500 m of drilling on 54 holes at the Cervantes project.
  • Silver Dollar Resources Inc. provided a progress report on the Nora project in Durango. Silver Dollar received all historical technical information from Canasil and is “organizing it into a database to analyze, interpret and then plan the next phase”. There are 13 diamond holes from Canasil’s 2020-2021 drilling campaign with a total of 3,296 m testing 500 m of the Candy structure, returning up to 3.29 m @ 6.44 gpt Au, 884 gpt Ag and 1.53 m @ 20.59 gpt Au, 1,290 gpt Ag.
  • Infinitum Copper Corp. commenced drilling at its 6,450 ha La Adelita property in Sonora. The 2,500 m diamond drilling program with 15 holes is designed to expand the high-grade mineralized area at the Cerro Grande zone and to test for mineralization at depth at Las Trancas zone. Drilling is aimed to extend the north-south extent of mineralization to 500 m and step out up to 700 m west of the known mineralization. At Las Trancas, 5 Km from Cerro Grande, the Sangre de Toro feature is to be tested with the first drilling in the area for the presence of a large mineralized structure.
  • Vortex Metals Inc. initiated surface geological work at its 12,041 ha Riqueza Marina project in Oaxaca. As the Santa Cruz Tagolaba community granted approval, Vortex can now commence work, including trenching, over an area including the Rhyolite Dome target, where substantial size and coincident gravity and magnetic anomalies along with anomalous copper values are interpreted to reflect a concealed sulfide deposit.

ON MINING

  • Impact Silver Corp. announced its financial and operating results for Q1 2023. At its Royal Mines of Zacualpan mine operations, in Estado de Mexico, 38.7 K tonnes were milled during the period, averaging 162 gpt Ag, to produce 167 K Oz Ag. Reported revenue was $5.1 M, mine operating earning $0.6 M and the net loss $0.6 M, with a working capital of $15.7 M and a cash position of $14.3 M by the end of the period.
  • Guanajuato Silver Company Ltd. announced financial and operating results for Q1 2023. During the period the company produced 458.8 K Oz Ag, 4,413 Oz Au, 0.91 M Lb Pb, 1.15 M Lb Zn (or 938 K Oz AgEq) at El Cubo Mines Complex, Valenciana Mines Complex and San Ignacio mine, in Guanajuato, and Topia mine, in Durango. Revenue was US$17.1 M, with a net loss of US$8.7 M. The All-in sustaining cost (AISC) was $21.83 per AgEq. Infrastructure upgrades to deliver improvement in 2023 include Falcon concentrators at El Cubo and Valenciana, the rehabilitation of the Cata Shaft already completed and the implementation of hydraulic backfilling of tailings at Valenciana.

ON FINANCING

  • Silver Viper Minerals Corp. granted 5.15 M incentive stock options to directors, officers and consultants to purchase up to 5.15 M common shares in the capital of Silver Viper. (La Virginia, Sonora).

ON RESOURCES AND DEVELOPMENT

  • Avino Silver & Gold Mines Ltd. released the results of ten drill holes from below Level 17, the current deepest workings of the Avino mine in Durango. The Avino vein has been drilled to a depth of 1,100 m downdip from the surface outcrop. A total of ten holes in this campaign totalled 3,414 m. Highlighted true width intercepts comprise 2.61 m @ 0.06 gpt Au, 75 gpt Ag, 2.58% Cu; 19.90 m @ 0.02 gpt Au, 30 gpt Ag, 1.29% Cu; 3.00 m @ 0.99 gpt Au, 34 gpt Ag, 0.08% Cu; 35.73 m @ 0.14 gpt Au, 28 gpt Ag, 0.65% Cu; 48.40 m @ 0.08 gpt Au, 45 gpt Ag, 0.55% Cu; 36.00 m @ 0.16 gpt Au, 27 gpt Ag, 0.81% Cu; 1.30 m @ 0.05 gpt Au, 97 gpt Ag, 2.28% Cu. “The changing tenor of the mineralization could be reflecting a transition from epithermal to porphyry-style mineralization”.
  • Heliostar Metals Ltd. reported its first drill results from the Ana Paula project in Guerrero. The first two holes drilled by Heliostar targeted the “High Grade Panel” at the core of Ana Paula. Highlighted core length intervals comprise 118.55 m @ 5.44 gpt Au (including 44.5 m @ 11.0 gpt Au, which include 4.0 m @ 48.5 gpt Au); 101.12 m @ 8.35 gpt Au (including 53.2 m @ 11.0 gpt Au). “the High Grade Panel is approximately 250 metres long by 100 metres high by 60 metres thick… hosted primarily in a polymictic breccia unit, although it extends outward into the surrounding granodiorite and limestone. Gold mineralization is directly associated with the proportion of sulphide minerals in the rock”. Heliostar is re-evaluating the project as a high-grade underground mine.
  • Capitan Mining Inc. provided an exploration update on its Cruz de Plata project in Durango. New interpretation points to the Jesus Maria vein to have a potential strike length of 2.8 km, the Santa Teresa vein of 1.8 km and the San Rafael North vein of 1.3 km before going under cover. The Capitan East gold target has a potential strike of at least 500 m. Seven targets have been recently defined by mapping and prospecting.
  • Prime Mining Corp. reported results from core drilling at the Z-T area on Los Reyes project in Sinaloa. Highlighted true width intervals comprise 11.6 m @ 3.33 gpt Au, 221 gpt Ag (including 1.0 m @ 24.0 gpt Au, 1,385 gpt Ag); 9.8 m @ 1.52 gpt Au, 25 gpt Ag (including 1.5 m @ 7.94 gpt Au, 61 gpt Ag); 4.5 m @ 1.03 gpt Au, 34 gpt Ag in the Tahonitas zone and 13.8 m @ 0.96 gpt Au, 27 gpt Ag; 8.5 m @ 0.84 gpt Au, 14 gpt Ag; 15.9 m @ 0.74 gpt Au, 37 gpt Ag; 8.5 m @ 1.01 gpt Au, 23 gpt Ag at the Zapote South zone. The results are from step out holes to expand mineralization at depth below the Z-T resource pit shell. Prime Mining recently announced a mineral resource estimate containing 1.47 M indicated Oz AuEq averaging 1.68 gpt and 0.73 M inferred Oz AuEq averaging 1.26 gpt.
  • Discovery Silver Corp. released results from feasibility study drill holes on its Cordero project in Chihuahua. The reserve expansion drilling highlighted core length intercepts comprise 41 m @ 63 gpt Ag, 0.09 gpt Au, 1.2% Pb, 2.7% Zn; 8 m @ 195 gpt Ag, 0.23 gpt Au, 2.2% Pb, 4.1% Zn; 37 m @ 58 gpt Ag, 0.05 gpt Au, 0.8% Pb, 1.5% Zn; 104 m @ 37 gpt Ag; 0.04 gpt Au, 0.3% Pb, 1.1% Zn; 51 m @ 51 gpt Ag, 0.06 gpt Au, 0.7% Pb, 0.9% Zn. The results are from 23 drill holes focused on reserve upgrade and expansion in the South Corridor and reserve expansion drilling on the margins of the Pozo de Plata zone in the North Corridor. To date 49,700 m of drilling in 156 holes have been completed as part of the feasibility study. A 9,000 m property wide drilling program is planned for the second half of the year.
  • GR Silver Mining Ltd. released results from two step-out holes outside of the mineral resource boundary at San Marcial, within the Plomosas project in Sinaloa. Highlighted core length results comprise 18.8 m @ 145 gpt Ag, 0.04 gpt Au, 0.1% Pb, 0.1% Zn (including 4.2 m @ 466 gpt Ag, 0.08 gpt Au, 0.1% Pb, 0.3% Zn); 11.3 m @ 584 gpt Ag, 0.05 gpt Au, 0.3% Pb, 0.6 % Zn (including 5.5 m @ 1,084 gpt Ag, 0.07 gpt Au, 0.6% Pb, 1.0% Zn). These holes targeted the extension of the SE Area discovery, 250 m to the southeast.

ON DEALS AND CORPORATE ISSUES             

  • Tarachi Gold Corp. closed the transaction with Compañía Minera de Atocha S.A. de C.V. for the sale of the Magistral project in Durango. Tarachi expects to receive cash payments totalling US$5.7 M from Atocha, of which US$3.05 M have already been received. The balance is to be paid as follows: US$500 K when Atocha concludes negotiations with land owner Ejido Magistral, or after 12 months; US$500 K on November 2023; US$500 K when 50% of the tailings have been mined, sold or processed, or after the first calendar year of operation at the project; US$500 K when 100% of the Magistral tailings have been mined, sold or processed, or after the second calendar year of operation and “The amount of value-added tax currently owing as that tax benefit is realized by Atocha during operations and product sales from the Magistral Project will be paid to Tarachi”, estimated at US$650 K.
  • Silver Dollar Resources Inc. completed the exercise of its option and now hold 100% interest in the 4,646 ha La Joya project, located in Durango. For gaining 80% interest the company paid First Majestic Silver a total of $700 K plus annual holding costs, incurred in $1 M exploration expenditures and issued First Majestic 19.9% (5.15 M shares) of the then issued and outstanding shares of the company. To obtain the remaining 20% Silver Dollar issued 2 M shares, 5% of the then issued and outstanding shares of the company, to First Majestic, which now owns 18.2% of the outstanding shares of the company.    

ON SOCIAL RESPONSIBILITY

  • Torex Gold Resources Inc. released its 2022 Responsible Gold Mining Report, the annual disclosure of its environmental, Social and Governance (ESG) performance. Among other accomplishments, the company achieved 10 M hours worked without a lost-time injury, ending 2022 with a lost-time injury frequency of 0.28 per million hours worked by its employees and contractors. Almost 60% of the water usage is recycled, 44% less cyanide has been consumed than in 2021. Mexican employees are 99% of the work force, and 60% from Guerrero, where the operations are carried out.

On the image below: Mine dumps in a copper project of the Sonoran Desert. Picture by Jorge Cirett.

The Mining and Exploration News in Mexico: Highlights on the Third Week of May, 2023.

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Quartz blade texture in a low-sulphidation epithermal vein

By Miguel A Heredia

During the 20th week of the year (May 17th to May 21st, 2023), at least 16 press releases were announced by companies working in Mexico, with four reporting resources and developments of their properties, four communicating production and financial results, three disclosing deals and corporate issues, two announcing financing issues, two informing on exploration results, and one commenting on Mexican issues. ON MEXICO ISSUES, Alamos Gold and Guanajuato Silver reported the best drilling intercepts in Mexico on the third week of May, 2023. ON EXPLORATION, In Sonora, Colibri reported a strong soil gas hydrocarbon gold anomaly at its Evelyn-Plomo project. In Oaxaca, Vortex initiated environmental and surface geological studies at its Zaachila project. ON MINING, Americas Gold and Silver reported Q1, 2023 production and financial results. Sierra Metals announced Q1, 2023 production and financial results from their Bolivar and Cusi mines in Chihuahua. Starcore reported Q4, 2023 production results from its San Martin mine in Queretaro. Excellon announced Q1, 2023 financial results.  ON FINANCING, Fabled announced that it intends to complete a non-brokered private placement for gross proceeds of up to CAD $500K (Mecatona project, Chihuahua). Excellon announced a private placement financing for up to CAD $10M of subscription receipts (La Negra mine, Queretaro). ON RESOURCES AND DEVELOPMENT, Guanajuato Silver released drill results from their San Ignacio mine in Guanajuato and Topia mine in Durango. Alamos Gold reported results from its ongoing drilling program at Puerto del Aire deposit and Capulin target within its Mulatos mine in Sonora. GoGold announced results of its initial Preliminary Economic Assessment (PEA) at its Los Ricos North project in Jalisco. Tocvan provided an update and sampling results from a bulk sample completed at its Pilar project in Sonora. ON DEALS AND CORPORATE ISSUES, Vizsla granted stock options to Directors, Officers, Employees, and Consultants (Panuco project, Sinaloa).  Fabled provided an update on the agreement with Kootenay to acquire the Mecatona property in Chihuahua. Excellon provided corporate highlights for the three month ended March 31, 2023.  ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUE

  • Alamos Gold Inc., and Guanajuato Silver Company Ltd., reported the best drilling intercepts in Mexico on the third week of May, 2023. Details are shown in the table below:

ON EXPLORATION

  • Colibri Resource Corporation reported a strong soil gas hydrocarbon gold anomaly (SGH) south of the main Zone at its Evelyn-Plomo project in Sonora. To define this anomaly, a total of 110 soils samples were collected at 25m stations along 100m spaced lines. “Collectively, these interpreted features indicate a robust SGH response with a high degree of confidence that it is indicative of blind mineralization underlying the southern SGH gold anomaly”. Colibri plans to drill test this target with the hopes of expanding the Main Zone, as well as to continue evaluating the SGH method as a tool for future exploration on the Evelyn-Plomo project.
  • Vortex Metals Inc., initiated environmental and surface geological studies at its Zaachila project in Oaxaca. It will allow protecting the local environment and deepening the understanding of the project´s potential to advance its pursuit of multiple high-grade copper targets.

ON MINING

  • Americas Gold and Silver Corporation reported Q1, 2023 production and financial results from its Cosala operation in Sinaloa. The company produced approximately 265K Oz Ag, 2.7M Lb Pb, and 7.2M Lb Zn. Cash cost and AISC were USD $4.61 per Oz Ag and USD $9.52 per Oz Ag respectively. Production for 2023 is expected to be between 1.2-1.4M Oz Ag,11-13M Lb Pb, and 33-37M Lb Zn, benefiting from more production from the higher-grade silver areas in the Upper Zone of the San Rafael mine.
  • Sierra Metals Inc., announced Q1, 2023 production and financial results from their Bolivar and Cusi mines in Chihuahua. At Bolivar mine, the company processed 299K tonnes at a cash and AISC of USD $1.85 and USD $3.1 per CuEq payable pound. It reported cost of sales of USD $14.93M; a total cash cost of USD $13.16M; and a cash cost of USD $43.99 per ton processed. At Cusi mine, the company processed 59.1K tonnes at a cash and AISC of USD $23.02 and USD $29.8 per Oz AgEq payable. It reported cost of sales of USD $5.8M; a total cash cost of USD $5.23M; and a cash cost of USD $88.43 per ton processed.
  • Starcore International Mines Ltd., reported Q4, 2023 production results from its San Martin mine in Queretaro. The company milled 56,821 tonnes of 1.46 g/t Au and 11 g/t Ag with metallurgical recoveries of 86.12% and 48.72% respectively to produce 2,409 Oz AuEq.
  • Excellon Resources Inc., announced Q1, 2023 financial results. Excellon reported a reversal of the USD $22M litigation liability relating to the previously disclosed judgment against one of the company’s subsidiaries in Mexico; a gain on the deconsolidation of San Pedro of USD $24.25M; other income of USD $1.58M; and a net income of USD $15.9M. The company announced in its 2022 Preliminary Economic Assessment (PEA) a post-tax NPV (using a discount rate of 5%) of USD $132.4M and estimated restart capital of USD $20.9M, based on the PEA.

ON FINANCING

  • Fabled Silver Gold Corp., announced that it intends to complete a non-brokered private placement for gross proceeds of up to CAD $500K at a price of CAD $0.05 per unit. Gross proceeds will be used to complete a phase 1 exploration program at the Mecatona project in Chihuahua, and for general working capital purposes.
  • Excellon Resources Inc., announced a private placement financing for up to CAD $10M of subscription receipts at an offer price of CADS $0.35 per subscription receipt (La Negra mine, Queretaro).

ON RESOURCES AND DEVELOPMENT

  • Guanajuato Silver Company Ltd., released drill results from their San Ignacio mine in Guanajuato and Topia mine in Durango. At San Ignacio mine, drilling highlights reported in true widths include hole UGSI23-008 with 1.95 g/t Au and 501 g/t Ag (657 g/t AgEq) over 1.90m, including 3.42 g/t Au and 744 g/t Ag (1,018 g/t AgEq) over 0.70m, plus 2.01 g/t Au and 2 g/t Ag (163 g/t AgEq) over 0.22m, plus 0.23 g/t Au and 94 g/t Ag (113 g/t AgEq) over 0.35m; hole UGSI23-009 with 1.26 g/t Au and 415 g/t Ag (516 g/t AgEq) over 1.93m, including 4.14 g/t Au and 2,020 g/t Ag (2,351 g/t AgEq) over 0.22m, plus 0.25 g/t Au and 113 g/t Ag (133 g/t AgEq) over 0.77m, including 0.46 g/t Au and 215 g/t Ag (252 g/t AgEq) over 0.40m; and hole UGSI23-010 with 1.78 g/t Au and 557 g/t Ag (699 g/t AgEq) over 0.45m, plus 1.68 g/t Au and 8 g/t Ag (142 g/t AgEq) over 1.68m, including 2.57 g/t Au and 9 g/t Ag (215 g/t AgEq) over 0.64m, plus 1.72 g/t Au and 122 g/t Ag (260 g/t AgEq) over 1.72m, including 2.94 g/t Au and 151 g/t Ag (386 g/t AgEq) over 0.60m, plus 0.32 g/t Au and 334 g/t Ag (359 g/t AgEq) over 4.89m, including 1.25 g/t Au and 1,947 g/t Ag (2,047 g/t AgEq) over 0.37m. At Topia mine, drilling highlights reported in true widths include hole UT23-458 with 4.39 g/t Au, 660 g/t Ag, 3.2% Pb, and 8.5% Zn (1,435 g/t AgEq) over 0.45m, plus 13.89 g/t Au, 152 g/t Ag, 1% Pb, and 5.6% Zn (1,551 g/t AgEq) over 0.10m; hole UT23-459 with 2.02 g/t Au, 938 g/t Ag, 24.6% Pb, and 9.8% Zn (2,150 g/t AgEq) over 0.42m; hole UT23-460 with 8.16 g/t Au, 113 g/t Ag, 2.1% Pb, and 1.9% Zn (923 g/t AgEq) over 0.45m; hole UT23-461 with 3.53 g/t Au, 905 g/t Ag, 1.1% Pb, and 7.8% Zn (1,525 g/t AgEq) over 0.10m; hole UT23-463 with 6.55 g/t Au, 1,424 g/t Ag, 4.8% Pb, and 13.8% Zn (2,674 g/t AgEq) over 0.60m; and hole UT23-465 with 0.0 g/t Au, 731 g/t Ag, 4% Pb, and 0.2% Zn (851 g/t AgEq) over 0.15m.
  • Alamos Gold Inc., reported results from its ongoing drilling program at Puerto del Aire deposit and Capulin target within its Mulatos mine in Sonora. At Puerto del Aire deposit, drilling highlights reported in true widths and values > 40 g/t Au capped include hole 23MUL117 with 20.95 g/t Au (11.14 g/t Au cut) over 14.15m; hole 23MUL119 3.52 g/t Au over 17.05m, plus 8.33 g/t Au over 18m; hole 23MUL112 with 14.81 g/t Au (12.34 g/t Au cut) over 9.1m; hole 23MUL108 with 16.19 g/t Au (7.63 g/t Au cut) over 7.75m; hole 23MUL98 with 10.8 g/t Au over 3m, plus 33.14 g/t Au over 3.05m: and hole 23MUL115 with 15.49 g/t Au (13.89 g/t Au cut) over 6m. These results extend high-grade gold mineralization outside of Mineral Reserves and Resources at Puerto Del Aire. At Capulin target, drilling highlights include hole 23REF012 with 2.01 g/t Au over 82.45m, including 4.81 g/t Au over 16.40m, including 5.38 g/t Au over 12.35m. Capulin target is located 2km east of the former San Carlos open pit.
  • GoGold Resources Inc., announced results of its initial Preliminary Economic Assessment (PEA) at its Los Ricos North project in Jalisco. Highlights of the PEA include an after-tax NPV (using a discount rate of 5%) of USD $413M, with an after-tax IRR of USD $29%; a 13-year mine life producing a total of 110.3M payable Oz AgEq, consisting of 68M Oz Ag, 221.7K Oz Au, 22.8M Lb Cu, 144.1M Lb Pb, and 242.2M Lb Zn; an initial capital costs of USD $221M, including USD $29M in contingency costs, over an expected 18 month build, additional expansion capital of USD $137M, and sustaining capital costs of USD $6M over the life of mine (LOM); an average LOM operating cash costs of USD $9.50 per Oz AgEq, and all in sustaining costs (AISC) of USD $9.68 per Oz AgEq; an average annual production of 8.8M Oz AgEq in years one through twelve; and approximately 3/4 of LOM production is from four open pits containing oxide mineralization and approximately 1/4 is from a separate open pit which contains only sulphide mineralization.
  • Tocvan Ventures Corp., provided an update and sampling results from a bulk sample completed at its Pilar project in Sonora. Tocvan reported bulk sample material averaging grades of 1.9 g/t Au and 13 g/t Ag from 148 samples ranging from 0.8 to 3.4 g/t Au and from 5 to 26 g/t Ag.  Additionally, 32 fine fraction samples excluded from heap leach process returned Au values from 1.2 to 2.8 g/t Au, with a weighted mean of 2.02 g/t Au, and Ag values from 9 to 25 g/t Ag, with a weighted mean of 16 g/t Ag. The fine fraction along with additional bulk sample material will be used in testing gravity recovery methods. “The heap leach process is currently underway for the Bulk Sample. Over 800 tonnes of Bulk Sample material have been prepared for heap leach processing, an additional 350 tonnes of crushed material and 250 tonnes of raw-bulk sample are available for gravity recovery and later agitated leach testing”.

ON DEALS AND CORPORATE ISSUES

  • Vizsla Silver Corporation granted 3.85M stock options at an exercise price of $1.60 to Directors, Officers, Employees, and Consultants. The options are exercisable for a period of five years and will vest over the next two years (Panuco project, Sinaloa).
  • Fabled Silver Gold Corp., provided an update on the agreement with Kootenay to acquire the Mecatona property in Chihuahua. “The company has been in the process of preparing required documentation in respect of the Proposed Transaction including a NI 43-101 Technical Report on the Mecatona Property. The Company is continuing to correspond with the TSX Venture Exchange regarding the Proposed Transaction and will provide further updates in due course”.
  • Excellon Resources Inc., provided corporate highlights for the three month ended March 31, 2023. The company announced the acquisition of the post-producing La Negra mine in Queretaro. La Negra is a fully permitted mine with Indicated Mineral Resources of approximately 15.1M Oz AgEq at 191 g/t AgEq and Inferred Mineral Resources of approximately 41.8M Oz AgEq at 202 g/t AgEq.

ON SOCIAL RESPONSIBILITY

  • No relevant news.

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

On the picture above, quartz blade texture in a low-sulphidation epithermal vein system in a prospect in Zacatecas, Mexico.  Photo by Miguel A Heredia.

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

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Quartz veining hosted in a hydrothermaly-altered intrusive

By Miguel A Heredia

During the 18th week of the year (May 1st to May 7th, 2023), at least 28 press releases were announced by companies working in Mexico, and 2 news published by the media, with eleven reporting resources and developments of their properties, six commenting on Mexican issues, four communicating production and financial results, three disclosing deals and corporate issues, three announcing financing issues, two informing on exploration results, and one discussing social issues. ON MEXICO ISSUES, Fortuna Silver reported an illegal blockade at its San Jose mine in Oaxaca. At least 40 companies from Canada and the United States that operate in Mexico expressed their intention to protect themselves after the approval of the reforms to the Mining Law. Chesapeake has initiated legal proceedings against the Dirección General de Minas of Mexico (DGM) with the Federal Court of Administrative Justice in the state of Durango, Mexico in response to the DGM’s cancellation of the San Vicente 3 mineral concession. Radius filed a legal demand with a Federal Mexican Court to obtain title to the Amelia 4 mining concession at its Amalia project in Chihuahua. The Senate of Mexico approved the mining reform that reduces and facilitates the cancellation of concessions. Bendito Resources, Infinitum Copper, Pan American Silver, and Silver Tiger reported the best drilling intercepts in Mexico on the first week of May, 2023. ON EXPLORATION, In Sonora, Infinitum Copper reported results from 6 of 12 drill holes collared at its Adelita project. In Chihuahua, Reyna Silver provided an update on their Batopilas and Guigui projects.  ON MINING, Capstone, Argonaut, and First Majestic reported Q1, 2023 production and financial results for their Mexican operations. Minera Alamos reported full year 2022 production and financial results from its Santana property in Sonora.  ON FINANCING, Sonoro Gold announced it plans to undertake a non-brokered private placement for gross proceeds of up to CAD $3M (Cerro Caliche project, Sonora). Kootenay announced a private placement for gross proceeds of $4M (Columba project, Chihuahua). First Majestic announced that its Board of Directors has declared a cash dividend payment in the amount of $0.0057 per common share for Q1, 2023. ON RESOURCES AND DEVELOPMENT, Xali received the change in soil use permit for its El Oro Tailings project in Mexico State. Bendito Resources presented results from the last 9 of 18 RC holes drilled at its El Alacran project in Sonora. Silver Tiger announced results from its ongoing drill program at its El Tigre project in Sonora. Capstone reported Mineral Reserves and Mineral Resources for its Cozamin property in Zacatecas as at January 1, 2023. GR Silver filed a NI 43-101 technical report to provide an updated resource estimate for its Plomosas project in Sinaloa. GoGold released additional results from its ongoing drilling campaign at its Los Ricos South project in Jalisco. Oroco presented a Mineral Resource Estimate as of April 21, 2013 for its Santo Tomas project in Sinaloa. Prime announced an updated Mineral Resource Estimate for its Los Reyes property in Sinaloa. Pan American Silver released results of eighth holes drilled at La Colorada Skarn project in Zacatecas. Minera Alamos announced positive results of an independent Preliminary Economic Assessment for its Cerro de Oro project in Zacatecas. Torex provided the second quarterly update on its Media Luna project in Guerrero. ON DEALS AND CORPORATE ISSUES, Bear Creek announced its CEO succession (Mercedes mine, Sonora). GR Silver announced the retirement of its CFO and the appointment of its replacement (Plomosas project, Sinaloa). Tarachi signed a definitive agreement for the sale of Magistral Tailings project in Durango.  ON SOCIAL RESPONSIBILITY, Almaden completed a social impact assessment relating to its Ixtaca project in Puebla, and underlying mineral claim area.

ON MEXICO ISSUE

  • Fortuna Silver Mines Inc., reported an illegal blockade at its San Jose mine in Oaxaca due to a group of workers did not agree with the estimated amount the Company is to distribute among the workforce as part of the worker´s profit sharing entitlement. Profit sharing is a transparent calculation and is payable in accordance with Mexican legislation.  As a consequence, operations at the mine have been temporarily halted.
  • At least 40 companies from Canada and the United States that operate in Mexico expressed their intention to protect themselves after the approval of the reforms to the Mining Law by the government because they consider that they are violating their rights and that they are being changing the rules of the game. The law firm Von Wobeser y Sierra, anticipated that they will also consider the international arbitration considered as a mechanism to resolve disputes within the framework of the Free Trade Agreement between Mexico, the United States and Canada (T-MEC) and the Trans-Pacific Economic Cooperation Agreement (TPP). The elimination of the concepts of Free Land and First Applicant are the elements that most concern companies because with them the government could “legalize” the non-granting of concessions to private parties, by giving the exploration monopoly to the Mexican Geological Service (SGM). ), warned the Mining Chamber of Mexico (Camimex). Until now, the Canadian mining company Silver Bull Resources presented in March to the International Center for Settlement of Investment Disputes (ICSID) its intention to claim economic damages for at least USD $178M for the blockade of its Sierra Mojada Project since September 2019. The American Vulcan Materials presented to ICSID a claim for an estimated damage of at least USD 1.9 B against Mexico for the closure and occupation of the Sac-Tun mine (formerly Calica) and the Punta Venado pier in Playa del Carmen. A resolution on this issue is pending since May 2022.
  • Chesapeake Gold Corporation has initiated legal proceedings against the Dirección General de Minas of Mexico (DGM) with the Federal Court of Administrative Justice in the state of Durango, Mexico in response to the DGM’s cancellation of the San Vicente 3 mineral concession, on the basis that the Company did not provide adequate evidence to support the Company’s performance of the exploration work required to maintain the concession. The Company’s legal position, approved by external Mexican legal counsel, is that the work required to maintain the concession was conducted on the property and appropriate evidence was submitted to the DGM to substantiate the work. The San Vicente 3 mineral concession is one of 12 mineral concessions comprising the Metates property, representing 700 hectares of the 4,260 hectares in the Metates project, and encompasses a portion of the Metates mineral resource. The Company intends to vigorously defend its position with respect to the San Vicente 3 mineral concession.
  • Radius Gold Inc., filed a legal demand with a Federal Mexican Court to obtain title to the Amelia 4 mining concession at its Amalia project in Chihuahua. “Radius and project JV partner Pan American Silver Corp. have completed all the requirements, fee payments and surveys for the Amalia 4 application.  The mining authority of Chihuahua has processed and approved the submission without fault and passed the license to the Mexico Mining Directorate proposing title issuance.  The regulated time for the mining authority to comment and request revision has passed and granting of title is a legal requirement under the mining law.  Radius has filed a legal demand to enforce the granting of title.  Radius legal counsel believes the Company has clear legal right to the application and title.  Legal counsel has been successful in obtaining granted concessions in similar situations recently”.
  • The Senate of Mexico approved the mining reform that reduces and facilitates the cancellation of concessions. The legal changes were approved despite Canada’s claim and in an express session in which twenty laws and reforms were endorsed in just five hours.  The senators approved modifications to the Mining, National Water, General Ecological Balance and Environmental Protection laws, and the General for the Prevention and Integral Management of Waste. The reform will allow the government to only grant mining concessions through a public tender and with prior consultation with indigenous peoples, in addition to facilitating the revocation of the license for environmental damage. The reform could generate tensions with the partners of the T-MEC, in particular with Canada, which has already complained in recent days. The Canadian Minister of International Trade, Mary Ng, revealed last Wednesday that she spoke with the Secretary of the Economy of Mexico, Raquel Buenrostro, to express the “concern” of the Canadian government with the then proposed reform of the country’s mining sector, in the that Canadian companies constitute the largest foreign investor.
  • GoGold Resources Inc., Bendito Resources Inc., Infinitum Copper Corp., Pan American Silver Corp., and Silver Tiger Metals Inc., reported the best drilling intercepts in Mexico on the first week of May, 2023. Details are shown in the table below:

ON EXPLORATION

  • Infinitum Copper Corp., reported results from 6 of 12 drill holes collared at its Adelita project in Sonora. Drilling highlights include hole ADD-22-0021 with 0.51% Cu, 0.16 g/t Au, 16 g/t Ag, and 0.6% Zn (1% CuEq) over a true width (TW) of 19.85m, including 0.83% Cu, 0.22 g/t Au, 22 g/t Ag and 0.8% Zn (1.51% CuEq) over a TW of 7.98m, including 0.41% Cu, 0.16 g/t Au, 14 g/t Ag, and 0.5% Zn (0.83% CuEq) over a TW of 8.69m; and hole AD-22-0028 with 0.8% Cu, 0.35 g/t Au, and 19 g/t Ag (1.22% CuEq) over a TW of 48.7m, including 0.85% Cu, 0.31 g/t Au, and 29 g/t Ag (1.34% CuEq) over a TW of 20.38m, including 1.03% Cu, 0.51 g/t Au, and 16 g/t Ag (1.54% CuEq) over a TW of 20.76m. “AD-22-0028 is the only drill hole which has intersected the large and distinct magneto-telluric anomaly on the eastern flank of the Cerro Grande anticline”. The intersection of hole AD-22- 0028 is open to the north, east and west.
  • Reyna Silver Corp., provided an update on their Batopilas and Guigui projects in Chihuahua. At Batopilas, Chihuahua, the company has carried out detailed sampling and structural programs, as well as conducted a detailed AMT geophysics study to outline major structures and features that may control vein control and location of mineralization, as well as to understand the historic ore shots geometry and mineralization surface expressions , including the newly identified gold-bearing structures. The company plans to drill again in the property a minimum of 3,000m once the final combining of the historical data, drill results, and detailed follow-up work is complete. At Guigui project, Chihuahua, the previous Phase 1 and 2 of drilling revealed critical components of an important CRD system. These drill programs identified a 0.5 square km skarn footprint that remains open in all directions. The company recently executed a Natural Source Audio MagnetoTellurics (NSAMT) survey and is waiting for the final interpretation to integrate into the developing drill-target model for the Phase 2 drilling program this year.

ON MINING

  • Capstone Copper Corp., reported Q1, 2023 production and financial results from its Cozamin property in Zacatecas. The company produced 11.65M Lb Cu at a cash cost of 1.72 per Lb Cu produced. Realized copper price was USD $4.17 per Lb.
  • Argonaut Gold Inc., reported production and financial results from their Mexican operations. At La Colorada, Sonora, the company reported that it sold 5,086 Oz Au; a cost of sales of USD $12.7M; a cost of sales per Oz Au sold of USD $2,505; a production cost of USD $8M; a cash and all in sustaining cost per Oz Au sold of USD $2,229 and USD $2,333 respectively. At San Agustin, Durango, it reported that 11,491 Oz Au were sold; a cost of sales of USD $22.7M; a cost of sales per Oz Au sold of USD $1,980; a production cost of USD $17.4M; a cash and all in sustaining cost per Oz Au sold of USD $1,558 and USD $1,627 respectively. At El Castillo, Durango, the company reported that it sold 7,358 Oz Au; a cost of sales of USD $14.5M; a cost of sales per Oz Au sold of USD $1,976; a production cost of USD $8.3M; a cash and all in sustaining cost per Oz Au sold of USD $1,675 in both cases.
  • First Majestic Silver Corp., reported Q1, 2023 production and financial results from their Mexican operations. Figures by mine operation is shown in the table below:
  • Minera Alamos Inc., reported full year 2022 production and financial results from its Santana property in Sonora. The company recovered and sold 11.67K Oz Au and reported revenue s of $21.7M; costs of goods sold of $13.5M for gross profits of $8.18M; net income of $5.6M; cash and cash equivalents of $13.15M; and working capital as of December 31, 2022 of $18.3M.

ON FINANCING

  • Sonoro Gold Corp., announced it plans to undertake a non-brokered private placement for gross proceeds of up to CAD $3M. The company will use the net proceeds to fund the ongoing development of a proposed heap leach mining operation at its Cerro Caliche project in Sonora.
  • Kootenay Silver Inc., announced a private placement for gross proceeds of $4M. Gross proceeds will be used for working capital requirements and other general corporate purposes (Columba project, Chihuahua).
  • First Majestic Silver Corp., announced that its Board of Directors has declared a cash dividend payment in the amount of USD $0.0057 per common share for Q1, 2023. The first quarter cash dividend will be paid to holders of record of First Majestic’s common shares as of the close of business on May 18, 2023, and will be distributed on or about June 9, 2023.

ON RESOURCES AND DEVELOPMENT

  • Xali Gold Corp., and its partner Sun River Gold Corp., received the change in soil use permit for its El Oro Tailings project in Mexico State. This is the main permit required for the El Oro Tailings project that allows moving out the tailings from the historical deposition site which is within the town of El Oro and to the industrial processing site outside of the town.
  • Bendito Resources Inc., presented results from the last 9 of 18 RC holes totaling 2,031m drilled at its El Alacran project in Sonora as part of the 2023 Phase 1 exploration program focused on demonstrating the southeastward extension of mineralization from the historical resources established at Loma Bonita and Mesa de Plata. Drilling highlights include hole BSS-23-011 with 0.13 g/t Au and 9 g/t Ag (0.24 g/t AuEq) over 33m, including 0.26 g/t Au and 20 g/t Ag (0.5 g/t AuEq) over 3m, plus 0.89 g/t Au and 22 g/t Ag (1,15 g/t AuEq) over 27m, including 1.89 g/t Au and 32 g/t Ag (2.27 g/t AuEq) over 6m, plus 1.32 g/t Au and 36 g/t Ag (1.74 g/t AuEq) over 3m; hole BSS-23-015 with 0.45 g/t Au and 2 g/t Ag (0.48 g/t AuEq) over 24m, including 2.37 g/t Au and 1 g/t Ag (2.39 g/t AuEq) over 3m, plus 0.27 g/t Au and 14 g/t Ag (0.44 g/t AuEq) over 63m, including 0.49 g/t Au and 39 g/t Ag (0.94 g/t AuEq) over 15m, plus 0.11 g/t Au and 17 g/t Ag (0.31 g/t AuEq) over 52.5m, including 0.21 g/t Au and 42 g/t Ag (0.71 g/t AuEq) over 7.5m; hole BSS-23-016 with 0.31 g/t Au and 11 g/t Ag (0.45 g/t AuEq) over 66m, including 2.26 g/t Au and 4 g/t Ag (2.3 g/t AuEq) over 7.5m, 8.06 g/t Au and 1 g/t Ag (8.07 g/t AgEq) over 1.5m, plus 0.15 g/t Au and 4 g/t Ag (0.2 g/t AuEq) over 19.5m, plus 0.16 g/t Au and 2 g/t Ag (0.19 g/t AuEq) over 12m; and hole BSS-23-018 with 0.16 g/t Au and 4 g/t Ag (0.21 g/t AuEq) over 9m, plus 0.08 g/t Au and 39 g/t Ag (0.53 g/t AuEq) over 93m, including 0.08 g/t Au and 84 g/t Ag (1.07 g/t AuEq) over 7.5m, plus 0.09 g/t Au and 59 g/t Ag (0.79 g/t AuEq) over 15m.
  • Silver Tiger Metals Inc., announced results from its ongoing drill program at its El Tigre project in Sonora. Highlights of the ongoing drilling program include hole ET-23-457 in the Sulphide Zone with 0.11 g/t Au, 297 g/t Ag, 0.28% Cu, 1.4% Pb, and 2.2% Zn (439 g/t AgEq) over 38.7m, including 0.17 g/t Au, 693 g/t Ag, 0.6% Cu, 3% Pb, and 4.6% Zn (987 g/t AgEq) over 15.8m, including 0.15 g/t Au, 1,100 g/t Ag, 0.87% Cu, 5.1% Pb, and 8% Zn (1,581 g/t AgEq) over 6.3m, including 0.13 g/t Au, 1,246 g/t Ag, 1% Cu, 6.4% Pb, and 13.4% Zn (1,949 g/t AgEq) over 3.4m, including 0.15 g/t Au, 1,943 g/t Ag, 1.58% Cu, 7.3% Pb, and 10.9% Zn (2,642 g/t AgEq) over 0.6m. “This hole added an additional 100 metres of down dip extent to east from Hole 428 to 457 and what it was thought was a thin zone of a little over a meter went to almost 39 meters of high grade mineralization.  Step out drilling now continues south”.
  • Capstone Copper Corp., reported Mineral Reserves and Mineral Resources for its Cozamin property in Zacatecas as at January 1, 2023. The company announced Probable Mineral Reserves of 10.2M tonnes with grades of 1.6% Cu, 43 g/t Ag, 0.5% Zn, and 0.3% Pb. It also presented Measured + Indicated Resources of 19.7M tonnes with grades of 1.58% Cu, 47 g/t Ag, 1.1% Zn, and 0.4% Pb, and Inferred Resources of 12.3M tonnes with grades of 0.72% Cu, 38 g/t Ag, 2% Zn, and 0.8% Pb. (Mineral Reserve is reported inclusive of Mineral Resource).
  • GR Silver Mining Ltd., filed a NI 43-101 technical report to provide an updated resource estimate for its Plomosas project in Sinaloa as of March 15, 2023. The company reported Indicated Resources of 15M tonnes with grades of 117 g/t Ag, 0.18 g/t Au, 0.4% Pb, 0.6% Zn, and 0.03% Cu (179 g/t AgEq) for a total of 55M Oz Ag, 84.5K Oz Au, 143.4M Lb Pb, 201-6M Lb Zn, and 8.96M Lb Cu (85M Oz AgEq) and Inferred Resources of 9M tonnes with grades of 78 g/t Ag, 0.38 g/t Au, 0.7% Pb, 1% Zn, and 0.03% Cu (171 g/T AgEq) for a total of 22M Oz Ag, 108.2K Oz Au, 143.4M Lb Pb, 203.8M Lb Zn, and 6.7M Lb Cu (49M Oz AgEq).
  • GoGold Resources Inc., released additional results from its ongoing drilling campaign at Eagle Area within its Los Ricos South project in Jalisco. Drilling highlights include hole LRGAG-22-162 with 6.07 g/t Au and 1,064 g/t Ag (20.26 g/t AuEq or 1,519 g/t AgEq) over 31m, including 19.38 g/t Au and 3,922 g/t Ag (71.67 g/t AuEq or 5,375 g/t AgEq) over 8.1m, including 144 g/t Au and 36,319 g/t Ag (628.25 g/t AuEq or 47,119 g/t AgEq) over 0.7m; hole LRGAG-22-147 with 1.06 g/t Au and 41 g/t Ag (1.63 g/t AuEq or 122 g/t AgEq) over 46.6m, including 3.24 g/t Au and 76 g/t Ag (4.25 g/t AuEq or 319 g/t AgEq) over 13.4m, including 24.3 g/t Au and 45 g/t Ag (24.9 g/t AuEq or 1,867 g/t AgEq) over 0.8m; hole LRGAG-22-150 with 6.96 g/t Au and 65 g/t Ag (7.83 g/t AuEq or 587 g/t AgEq) over 11.3m, including 12.02 g/t Au and 100 g/t Ag (13.36 g/t AuEq or 1,002 g/t AgEq) over 6.3m, including 32.1 g/t Au and 157 g/t Ag (34.19 g/t AuEq or 2,564 g/t AgEq) over 1.1m; hole LRGAG-22-158 with 2.19 g/t Au and 138 g/t Ag (4.03 g/t AuEq or 302 g/t AgEq) over 24.6m, including 3.87 g/t Au and 340 g/t Ag (8.41 g/t AuEq or 631 g/t AgQ) over 8.8m, including 13.06 g/t Au and 2,660 g/t Ag (48.52 g/t AuEq or 3,639 g/t AgEq) over 0.8m; and hole LRGAG-22-161 with 2.51 g/t Au and 339 g/t Ag (7.03 g/t AuEq or 527 g/t AgEq) over 33m, including 5.16 g/t Au and 945 g/t Ag (17.76 g/t AuEq or 1,332 g/t AgEq) over 9.6m, including 19.58 g/t Au and 3,665 g/t Ag (68.46 g/t AuEq or 5,134 g/t AgEq) over 1.3m. GoGold continues to work toward an upcoming updated Los Ricos South Mineral Resource and Preliminary Economic Assessment, which is expected to be completed by the end of June, 2023.
  • Oroco Resource Corp., presented a Mineral Resource Estimate as of April 21, 2023 for its Santo Tomas project in Sinaloa. The company reported Indicated Resources of 487.3M tonnes with grades of 0.32% Cu, 0.009% Mo, 0.03 g/t Au, and 2 g/t Ag (0.36% CuEq) for a total of 3.4 B Lb Cu, 91.9M Lb Mo, 392.8K Oz Au, and 32.7M Oz Ag (3.86 B Lb CuEq), and Inferred Resources of 599.9M tonnes with grades of 0.32% Cu, 0.007% Mo, 0.03 g/t Au, and 2 g/t Ag (0.36% CuEq) for a total of 4.17 B Lb Cu, 95.6M Lb Mo, 500.6K Oz Au, and 38.5M Oz Ag (4.69 B Lb CuEq). Oroco believes Santo Tomas has a substantial resource that is exposed at or near surface and has robust potential to support a large, low-cost open-pit mining operation. “The MRE confirms the high potential of the project, which remains open to the north and south, with clear potential for further expansion of the resource and further conversion of MRE Inferred resources to an Indicated resource classification”. 
  • Prime Mining Corp., announced an updated Mineral Resource Estimate for its Los Reyes property in Sinaloa. The company reported in the Mill Category a total of 16.6M tonnes of Indicated Resources with grades of 1.66 g/t Au and 60 g/t Ag (2.44 g/t AuEq) for a total of 888K Oz Au and 32.18M Oz Ag (1.3M Oz AuEq) contained, and Inferred Resources of 10.8M tonnes of 1.18 g/t Au and 47 g/t Ag (1.79 g(/t AuEq) for a total of 411K Oz Au and 16.39M Oz Ag (623K Oz AuEq) contained. In the Heap Leach Category Prime reported a total of 10.5M tonnes of Inferred Resources with grades of 0.37 g/t Au and 9 g/t Ag (0.49 g/t AuEq) for a total of 125K Oz Au and 3.08M Oz Ag (165K Oz AuEq), and Inferred Resources of 7.3M tones of 0.37 g/t Au and 8 g/t Ag (0.47 g/t AuEq) for a total of 86K Oz Au and 1.9M Oz Ag (111K Oz AuEq). Indicated Resources (Mill + Heap Leach) are 27.2M tonnes of 1.16 g/t Au and 40 g/t Ag (1.68 g/t AuEq) for a total of 1.01M Oz Au and 35.5M Oz Ag (1.47M Oz AuEq) and Inferred Resources (Mill + Heap Leach) of 18.1M tonnes of 0.85 g/t Au and 31 g/t Ag (1.26 g/t AuEq) for a total of 497K Oz Au and 18.3M Oz Ag (734K Oz AuEq).
  • Pan American Silver Corp., released results of eighth holes drilled at La Colorada Skarn project in Zacatecas. Drilling highlights include hole D-96-10-22 with 391 g/t Ag, 0.13% Cu, 10.8% Pb, and 8.5% Zn over 64.3m, including 914 g/t Ag, 0.19% Cu, 25.2% Pb, and 16.7% Zn over 23.25m, plus 154 g/t Ag, 0.03% Cu, 2.2% Pb, and 0.9% Zn over 22.75m, plus 27 g/t Ag, 0.23% Cu, 2.5% Pb, and 5% Zn over 13.3m, plus 37 g(/t Ag, 0.14% Cu, 1.1% Pb, and 6.4% Zn over 135.7m; hole D-96-12-23 with 233 g/t Ag, 0.1% Cu, 6.6% Pb, and 7.3% Zn over 109.55m, including 487 g/t Ag, 0.15% Cu, 15.5% Pb, and 10.1% Zn over 44.7m, plus 54 g/t Ag, 0.03% Cu, 1.3% Pb, and 2.6% Zn over 18m; hole D-96-09-22 with 106 g/t Ag, 0.03% Cu, 1.3% Pb, and 2.6% Zn over 5m, plus 123 g/t Ag, 0.11% Cu, 3.5%Pb, and 8.6% Zn over 21.2m, plus 162 g/t Ag, 0.05% Cu, 3.5% Pb, and 3.5% Zn over 26.95m, plus 98 g/t Ag, 0.07% Cu, 0.8% Pb, and 4% Zn over 72.6m; hole D-98-11-22 with 165 g/t Ag, 0.12% Cu, 4.4% Pb, and 9.3% Zn over 17.05m, plus 134 g/t Ag, 0.05% Cu, 5.3% Pb, and 6.9% Zn over 6.4m, plus 56 g/t Ag, 0.05% Cu, 1.6% Pb, and 4.2% Zn over 9.90m, plus 152 g/t Ag, 0.02% Cu, 0.9% Pb, and 2.8% Zn over 20.5m, plus 79 g/t Ag, 0.06% Cu, 0.6% Pb, and 1.9% Zn over 14.55m; hole U-138-22 with 122 g/t Ag, 0.08% Cu, 2.7% Pb, and 5.3% Zn over 4.05m, plus 193 g/t Ag, 0.15% Cu, 10.8% Pb, and 9.3% Zn over 71.35m, including 231 g/t Ag, 0.17% Cu, 13-1% Pb, and 11% Zn over 57.95m, plus 49 g/t Ag, 0.14% Cu, 0.4% Pb, and 1.1% Zn over 40.3m; hole U-112-22 with 80 g/t Ag, 0.03% Cu, 1.3% Pb, and 1.2% Zn over 15.25m, plus 141 g/t Ag, 0.06% Cu, 5.8% Pb, and 5.5% Zn over 53.15m, including 243 g/t Ag, 0.08% Cu, 11.3% Pb, and 8.3% Zn over 15.15m, plus 66 g/t Ag, 0.07% Cu, 0.6% Pb, and 3.5% Zn over 14.7m, plus 25 g/t Ag, 0.08% Cu, 1.7% Pb, and 3.8% Zn over 32.95m; and hole D-93-06-23 with 304 g/t Ag, 0.17% Cu, 4.7% Pb, and 2.5% Zn over 21.45m, plus 17 g/t Ag, 0.07% Cu, 1.7% Pb, and 3.8% Zn over 5.05m, plus 40 g/t Ag, 0.02% Cu, 2.7% Pb, and 3.5% Zn over 31.2m, plus 27g/t Ag, 0.1% Cu, 2.9% Pb, and 4.7% Zn over 143.3m, plus 22 g/t Ag, 0.06% Cu, 3.7% Pb, and 5.9% Zn over 5.1m, plus 49 g/t Ag, 0.25% Cu, 1.5% Pb, and 4.4% Zn over 74.2m.
  • Minera Alamos Inc., announced positive results of an independent Preliminary Economic Assessment for its Cerro de Oro project in Zacatecas. In April, 2023 it also completed the documentation necessary to formally proceed with the Cerro de Oro permitting process. “Discussions continue with a number of interested lending partners to provide the modest capital funding requirements for the development of the Cerro de Oro mine”.
  • Torex Gold Resources Inc., provided the second quarterly update on its Media Luna project in Guerrero. The Media Luna project continues to track overall schedule and budget. “At quarter-end, the project was 24% complete across engineering, procurement, underground development, and surface construction. With no major changes to the project execution plan, first concentrate production remains on track for late 2024, with commercial production still anticipated in early 2025. At quarter end, 34% of upfront project expenditures had been committed, including 22% incurred. The level of spending on the project is expected to increase throughout the remainder of the year, with total project expenditures of USD $390M to USD $440M guided in 2023.

ON DEALS AND CORPORATE ISSUES

  • Bear Creek Mining Corporation announced its CEO succession after the previous one decided to retire from such position. This appointment will be effective on June 5, 2023 (Mercedes mine, Sonora).
  • GR Silver Mining Ltd., announced the retirement of its CFO and the appointment of its replacement effective immediately (Plomosas project, Sinaloa).
  • Tarachi Gold Corp., signed a definitive agreement dated May 2, 2023 with Compañía Minera de Atocha S.A. de C.V., for the sale of Magistral Tailings project in Durango. The company expects to receive USD $5.7M as follow: USD $2.5M on or before closing; USD $0.5 of the USD $1M currently held in Canadian escrow account will be released to Tarachi on or before closing; The remaining USD $500K in the escrow account will be released to Tarachi when Atocha concludes negotiations with the Ejido Magistral, or after 12 months, whichever occurs first; USD $500K will be paid to Tarachi six months from closing, less any contingency costs, if any, that arise after closing that were incurred by Tarachi but not identified during due diligence. US$500K will be paid to Tarachi when 50% of the tailings located on the Magistral Project have been mined, sold and/or processed or after the first complete calendar year of operation at the Magistral Project, whichever occurs first; USD $500K will be paid to Tarachi when 100% of the Magistral Tailings have been mined, sold and/or processed or after the second complete calendar year of operation at the Magistral Project, whichever occurs first; the amount of value-added tax currently owing as that tax benefit is realized by Atocha during operations and product sales from the Magistral Project will be paid to Tarachi, estimated to total approximately USD $650K. Tarachi anticipates the tax benefit will be realized by Atocha and paid to Tarachi within the first year of commercial operations at the Magistral Project.

ON SOCIAL RESPONSIBILITY

  • Almaden Minerals Ltd., completed a social impact assessment  (SIA) relating to its Ixtaca project in Puebla, and underlying mineral claim area, and the completion of a human rights impact assessment (HRIA) that examines the potential impacts that could be caused if the Ixtaca project is developed in a manner consistent with the Ixtaca Feasibility Study. “The SIA concluded that there were no elements identified that would justify the cancellation of the concessions so long as the necessary social management measures were in place to avoid, mitigate or compensate for the potential negative impacts and amplify the positive ones. The HRIA represents a much more significant and holistic study than the SIA, as it aims to predict, identify, characterize, and assess the potential positive and negative impacts that the Ixtaca project could have during its lifespan on the human rights of both indigenous and non-indigenous communities located within its areas of influence and on other identified project stakeholders. In the event potential impacts are identified, the HRIA proposes strategies to amplify the positive and mitigate or compensate for the negative”.

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

On the picture above, quartz veining hosted in a hydrothermally-altered intrusive in a project in Sonora, Mexico.  Photo by Miguel A Heredia.

The Mining and Exploration News in Mexico: Highlights on the Third Week of April, 2023.

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Copper mineralization (chrysocolla)

By Miguel A Heredia

During the 16th week of the year (April 17th to April 23th, 2023), at least 17 press releases were announced by companies working in Mexico, and 8 news published by the media, with nine commenting on Mexican issues, six communicating production and financial results, four reporting resources and developments of their properties, four disclosing deals and corporate issues, one informing on exploration results, and one announcing financing issues. ON MEXICO ISSUES, Minera Gorrión, a subsidiary of Almaden Minerals, will challenge the cancellation of their concessions in the Municipality of Ixtacamaxtitlan, Puebla. Municipal Presidents (Majors), as representatives of the mining communities of the Chihuahua State, signed and sent a letter to AMLO to request that the Mining Reform initiative be analyzed, since they consider that it will seriously affect employment, health, education, local businesses, and in general, the well-being of the population. The Association of Mining Engineers, Metallurgists and Geologists of Mexico (AIMMGM) requested to expand discussion on mining law before submitting its vote in the Senate. The Plenary of the Chamber of Deputies, with the rejection of the opposition, started the debate that ended in the approval, in “fast track” of a new Mining Law, at the initiative of the parliamentary group of Morena. According to specialists, the Reform to the Mining Law would affect fundamental rights and international treaties, opening an USMCA panel with Canada. With 290 votes in favor, 186 against and one abstention, Morena and his allies in the Chamber of Deputies got ahead of the opposition and approved in plenary session an alternative initiative to that of President Andrés Manuel López Obrador that reforms the Mining Law and other arrangements. Mining companies lose on the Mexican Stock Exchange due to the initiative to reform the Mining Law in Mexico. GoGold and Oroco reported the best drilling intercepts in Mexico on the third week of April 2023. ON EXPLORATION, In Oaxaca, Vortex received community approval for environmental and surface geological surface baseline study at its flagship Zaachila project.  ON MINING, First Majestic, Golden Minerals, Avino, and Guanajuato Silver, reported Q1, 2023 production and financial results from their Mexican mine operations. Fresnillo and MAG Silver shipped their first commercial concentrate from the Juanicipio mine in Zacatecas. Bear Creek reported production and financial results from its Mercedes mine in Sonora for the period April 21, 2022 to December 31, 2022.  ON FINANCING, Endeavour entered into a Commitment Letter for a senior secured debt facility for up to USD $120M (Terronera project, Jalisco). ON RESOURCES AND DEVELOPMENT, Oroco announced drilling results from its Santo Tomas project, Sinaloa. GoGold released results from its ongoing drilling program from its Los Ricos South property in Jalisco. Endeavour announced its intentions to proceed with the construction of an underground mine and mill at the Terronera project in Jalisco. Heliostar commenced drilling at its Ana Paula property in Guerrero following the re-scoping plans announced previously. ON DEALS AND CORPORATE ISSUES, Chesapeake announced the appointment of its VP of Corporate Development and Investor Relations (Metates project, Durango). Riverside appointed a new Director and presented results from its annual meeting of shareholders (La Union project, Sonora).  Canasil signed an option agreement and an exclusivity agreement with Silver Dollar (Nora project, Durango).  ON SOCIAL RESPONSIBILITY, No relevant news.

ON MEXICO ISSUE

  • Minera Gorrión, a subsidiary of Almaden Minerals Ltd., will challenge the resolution of a judge of the second court district in the state of Puebla to cancel their concessions in the Municipality of Ixtacamaxtitlan, Puebla, avoiding developing open-pit mining projects. Minera Gorrión regretted the resolution to cancel its concessions in Puebla, since it does not include any argument that the company provided in its defense. The company said in an statement that  it is important to clarify that, as long as the legal proceedings related to this case continue, the company’s concession title requests remain valid, thus preserving the company and its acquired rights. For more than 20 years, the company has invested more than MXP $900M in exploration, the identification of a mineral deposit, and the planning to develop a modern mining project, which will have a very significant economic impact if authorized. “Minera Gorrión regrets that, in his resolution, the judge does not include any of the arguments that the company provided to defend its case.
  • Municipal Presidents (Majors), as representatives of the mining communities of the Chihuahua State, signed and sent a letter to AMLO to request that the Mining Reform initiative be analyzed before it is approved by the Congress since they consider that it will seriously affect employment, health, education, local businesses, and in general, the well-being of the population.
  • The Association of Mining Engineers, Metallurgists and Geologists of Mexico (AIMMGM) requested to expand discussion on the draft Decree for the reform of the Mining Law, the National Water Law, the Law of Ecological Balance and Environmental Protection and the General Law for the Prevention and Integral Management of Waste related to Mining and Water Concessions before submitting its vote in the Senate.
  • The Plenary of the Chamber of Deputies, with the rejection of the opposition, started the debate that ended in the approval, in “fast track” of a new Mining Law, at the initiative of the parliamentary group of Morena. Deputy Ignacio Mier Velazco, coordinator of the Morena Parliamentary Group said that “for the first time it is regulated, transparency is given, the people of Mexico are given certainty, the environment is protected and the water is taken care of”. However, during the discussion in general, the opposition showed their rejection of the approval of this law, for not listening to the voices of indigenous people, peasants, or defenders of the environment. The deputy Laura Patricia Contreras Duarte (PAN), assured that the initiatives proposed by the President of the Republic are nothing more than “whims”.
  • According to specialists, the Reform to the Mining Law would affect fundamental rights and international treaties, opening an USMCA panel with Canada. The mining and water reform initiative, which is under discussion in Congress, has generated concern in various sectors due to the possible violations of fundamental rights that its entry into force could imply, said lawyers who are experts in the matter. One of the aspects that have been the subject of criticism is the elimination of requests for processing of new concessions that are pending resolution.  The initiative is a very serious impact on foreign direct investment, since it generates great discontent in the foreign mining sector, especially Canada, which belongs to the USMCA. As a result of this, it is very likely that a dispute resolution panel will be initiated because it is a clear violation of Mexico’s obligations in the protection of foreign investment, noting that Canadian investment is very large in Mexico, so it is a direct affectation to their interests.
  • With 290 votes in favor, 186 against and one abstention, Morena and his allies in the Chamber of Deputies got ahead of the opposition and approved in plenary session an alternative initiative to that of President Andrés Manuel López Obrador that reforms the Mining Law and other arrangements. The proposal -voted only in general and which is still being discussed in particular- reduces the validity of mining concessions from 50 to 30 years, with the possibility of extending them for another 25 years and at the end of that term, in case of participating in the new tender of the same lot, the holder would have preference for another 25 non-extendable years. In what the opposition described as an “albazo”, the parliamentary majority of Morena resumed the presidential initiative on the matter and presented it as its own initiative to discuss and vote on it on “fast-track”. It also conditions the mining concession to water availability and, where appropriate, to the mining water concession previously obtained, in accordance with the spirit of the Constitution in this matter, which gives priority to the human and domestic use of water. The obligation of the concessionaires to carry out the efficient use and reuse of water and, where appropriate, the restoration of the water resource is established. In its reform proposal, the Federal Executive proposed that the concession only be granted for mineral or substance susceptible to exploitation, which will allow, in its opinion, greater control and generation of resources for the State and the affected communities. In another aspect, the federal government establishes in its proposal that acts of private law are not recognized for the transfer of the mining concession, so that the Ministry of Economy may authorize the transfer only when the requirements requested for the original concession are met. That is, the concession will not serve to guarantee the obligations of the concession holder. On this, the initiative of the Morena legislators establishes that the transmission and guarantee of mining concessions will be carried out with the authorization of the General Directorate of Mines of the Ministry of Economy, as long as it is verified that the transmission is between two mining companies, in order to avoid speculation. In the case of the guarantee, when it is a company that is in operation. In order to regulate and avoid predatory, harmful mining activities that are contrary to the right to water, a healthy environment, people’s health and, in general, the rights of the towns and communities where said projects are carried out, the initiative of the Executive proposes presenting a social impact study and a Restoration, Closing and Post-closing Program. Likewise, it requires a Mine Closure Plan, the presentation of letters of credit to guarantee compliance with the mitigation and restoration obligations and a Waste Management Program. The initiative of the legislators considers the instrument of a letter of credit to guarantee the Mine Closure Plan.
  • Mining companies lose on the Mexican Stock Exchange due to the initiative to reform the Mining Law in Mexico. Grupo México, the main copper producer worldwide, fell 1.73%, to MXP $91.43 pesos per share, and Industrias Peñoles, the largest silver producer, lost 1.49%, to MXP $279.29 per share. The miners are concerned about the possible negative effects on their profitability and the economic impact on the country, since the proposal implies higher costs for them and a shorter time to recover the expenses,” said José María de las Rivas, Analyst at Intercam Bank.
  • GoGold Resources Inc., and Oroco Resources Corp., reported the best drilling intercepts in Mexico on the third week of April, 2023. Details are shown in the table below:

ON EXPLORATION

  • Vortex Metals Inc., received community approval for environmental and surface geological surface baseline study at its flagship Zaachila project in Oaxaca. The environmental study will be carried out by a group of 10 environmental specialists and will involve a total area of 500 hectares. The company also will conduct geological mapping, sampling, and trenching on the property.

ON MINING

  • First Majestic Silver Corp., reported Q1, 2023 production and financial results from their Mexican operations. Production figures by mine operation is shown in the table below:

The Company is planning to release its Q1, 2023 unaudited financial results on May 4, 2023.

  • Golden Minerals Company announced Q1, 2023 production figures from its Rodeo project in Durango. The company mined 154,371 tonnes, stockpiled 18,467 tonnes awaiting process, stockpiled 133,349 tonnes of low grade, and processed 54,272 tonnes of 1.6 g/t Au and 9 g/t Ag with metallurgical recoveries of 72.6% and 75.5% respectively, to produce 2,081 Oz of payable Au and 11,535 Oz Ag (2,219 Oz AuEq). The average realized price before refining and selling cost was USD $1,891.24 for Oz Au and USD $22.60 for Oz Ag.
  • Avino Silver & Gold Mines Ltd., reported Q1, 2023 production and financial results from its Avino mine in Durango. The company milled 159,757 tonnes of 51g/t Ag, 0.58 g/t Au, and 0.47% Cu with metallurgical recoveries of 89%, 77%, and 84% respectively to produce 234.3K Oz Ag, 2,286 Oz Au, and 1.4M Lb Cu (or 678.2K Oz AgEq).
  • Guanajuato Silver Company Ltd., announced Q1, 2023 consolidated production figures from their Mexican operations in Durango (Topia) and Guanajuato (El Cubo, Valenciana, and San Ignacio). The company mined 162,116 tonnes and milled 160,182 tonnes to produce 458.8K Oz Ag, 4,413 Oz Au, 906.7K Lb Pb, and 1.1M Lb Zn (938K Oz AgEq), with metallurgical recoveries of 83.9%, 81.1%, 87.1%, and 83.5% respectively.
  • Fresnillo plc (56%) and MAG Silver Corp. (44%), shipped their first lead-zinc commercial concentrate from the Juanicipio mine in Zacatecas. During March 2023, milling rates were around 60% of design, delivering an average of 2,476 tonnes per day with rates periodically reaching up to 3,900 tonnes per day. Current mill feed is a combination of mineralized material from underground stopes and lower grade stockpiles. Over the course of March 2023, lower grade commissioning material was processed with recovery rates averaging 84% for Ag, slightly above expectations at this stage of the commissioning.
  • Bear Creek Mining Corporation reported production and financial results from its Mercedes mine in Sonora for the period April 21, 2022 to December 31, 2022. The company mined 337,108 tonnes and processed 412,457 tonnes of 3.02 g/t Au and 3 g/t Ag to produce 34,628 Oz Au and 8,489 Oz Ag at cash and all-in-sustaining cost of USD $1,193 and USD $1,627 per Oz Au sold and streamed respectively. The company reported revenues of USD $61M .

ON FINANCING

  • Endeavour Silver Corp., entered into a Commitment Letter with Societe Generale and ING Bank N.V. for a senior secured debt facility for up to USD $120M to proceed with the construction of an underground mine and mill at its Terronera property in Jalisco.

ON RESOURCES AND DEVELOPMENT

  • Oroco Resource Corp., announced drilling results from its Santo Tomas project, Sinaloa. Drilling highlights include hole NO-44 with 0.83% Cu, 0.011% Mo, and 0.072 g/t Au (0.93% CuEq) over 352.5m (best hole drilled on the project to date); and hole NO-45 with 0.44% Cu, 0.011% Mo, and 0.035 g/t Au (0.50% CuEq) over 329.8m. The company has now completed its North Zone drill program in support of the planned Preliminary Economic Assessment (PEA).
  • GoGold Resources Inc., released results from the ongoing drilling program at Eagle Area within its Los Ricos South property in Jalisco. Drilling highlights include hole LRGAG-22-134 with 1.13 g/t Au, 69 g/t Ag (2.05 g/t AuEq or 154 g/t AgEq) over 36.9m, including 2.28 g/t Au and 134 g/t Ag (4.06 g/t AuEq or 305 g/t AgEq) over 16.5m, including 8.55 g/t Au and 824 g/t Ag (19.53 g/t AuEq or 1,465 g/t AgEq) over 1.3m; hole LRGAG-22-136 with 1.03 g/t Au and 65 g/t Ag (1.9 g/t AuEq or 142 g/t AgEq) over 53m, including 2.16 g/t Au and 56 g/t Ag (2.9 g/t AuEq or 218 g/t AgEq) over 20.2m, including 9.54 g/t Au and 490 g/t Ag (16.07 g/t AuEq or 1,205 g/t AgEq) over 0.7m; hole LRGAG-22-138 with 3.06 g/t Au and 193 g/t Ag (5.64 g/t AuEq or 423 g/t AgEq) over 27.3m, including 15.64 g/t Au and 908 g/t Ag (27.74 g/t AuEq or 2,081 g/t AgEq) over 1.4m, including 5.43 g/t Au and 563 g/t Ag (12.94 g/t AuEq or 970 g/t AgEq) over 1m; hole LRGAG-22-141 with 3.82 g/t Au and 114 g/t Ag (5.34 g/t AuEq or 400 g/t AgEq) over 28.4m, including 43.30 g/t Au and 99 g/t Ag (44.62 g/t AuEq or 3,346 g/t AgEq) over 0.9m, plus 2.10 g/t Au and 189 g/t Ag (4.61 g/t AuEq or 346 g/t AgEq) over 11.4m, including 9.43 g/t Au and 710 g/t Ag (18.89 g/t AuEq or 1,417 g/t AgEq) over 1.3m; and hole LRGAG-22-145 with 1.94 g/t Au and 272 g/t Ag (5.56 g/t AuEq or 417 g/t AgEq) over 42.2m, including 3.7 g/t Au and 700 g/t Ag (13.03 g/t AuEq or 977 g/t AgEq) over 14.1m, including 16.15 g/t Au and 5,740 g/t Ag (92.68 g/t AuEq or 6,951 g/t AgEq) over 0.5m. “These holes, combined with additional drilling in the Los Ricos South Main area, should add value to the upcoming updated Los Ricos South Mineral Resource and Preliminary Economic Assessment”.
  • Endeavour Silver Corp., announced its intentions to proceed with the construction of an underground mine and mill at the Terronera project in Jalisco. It will consists of a process plant with 2,000 tonne per day capacity and an initial capital expenditure cost of USD $230M, partially offset by a decrease in sustaining capital to USD $88.3M over the life of the mine.  The company expects a 21-month construction period, including 3 to 6 months ramp up to full production with initial production expected in Q4, 2024.
  • Heliostar Metals Limited commenced drilling at its Ana Paula property in Guerrero following the re-scoping plans announced previously. The program will consist of 3,000 – 3,600m of drilling in 16 – 24 drill holes, to increase the size and grade of the resource and reserve, provide the geotechnical information required to complete underground mine planning, and provide metallurgical samples testwork designed to improve gold recovery and simplify the mill flow sheet.

ON DEALS AND CORPORATE ISSUES

  • Chesapeake Gold Corp., announced the appointment of its VP of Corporate Development and Investor Relations, effective May 29, 2023 (Metates project, Durango).
  • Riverside Resources Inc., appointed a new Independent Director and presented results from its annual meeting of shareholders (La Union project, Sonora).
  • Canasil Resources Inc signed an option agreement and an exclusivity agreement with Silver Dollar Resources Inc. Pursuant to the agreements, Silver Dollar will provide Canasil with a USD $200K non-interest-bearing loan in return for a two-month exclusivity period to conduct due diligence on the assets of Canasil and an option to earn a 100% interest in Canasil’s Nora property in Durango. Under the terms of the Nora Option, Silver Dollar can earn a 100% interest in the Property by incurring total exploration expenditures of USD $3M and making cash payments totaling USD $375K over five years. Upon earning a 100% interest in the Property, Silver Dollar will grant Canasil a 3% net smelter returns royalty ,with Silver Dollar having the right to buy back 1% of the royalty for USD $3M. After granting the royalty, Silver Dollar will also pay an annual royalty of USD $25K which will be offset against the 1% royalty buyback.

ON SOCIAL RESPONSIBILITY

  • No relevant news.

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

On the picture above, Cu mineralization (chrysocolla) in a prospect in Chihuahua, Mexico.  Photo by Miguel A Heredia.

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

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By Jorge Cirett                                             

During the 15th week of the year (April 10th to April 16th, 2023), 16 companies working in Mexico released news on their properties. One company informed on exploration at one of its properties, eight companies informed on Q1 2023 production results. One company closed a financing placement while a company opened another one. A company informed on the advance to take a property into production, one other reported drilling results at its main project. One company is exercising its option to acquire a property, while one other is extending the option on an exclusivity agreement. ON MEXICO ISSUES, calls for dialog with Congress are being made with urgency on the merits and negative implications of the proposed changes to the Mining Law. The federal government qualified Vulcan Minerals compensatory demand as unfounded. ON EXPLORATION, in Sonora, Tocvan Ventures provided results from a leach test at its Pilar property. ON MINING, Endeavour Silver, Guanajuato Silver Company, Fortuna Silver, Torex Gold, Gold Resource, Gatos Silver, Orla Mining and Bear Creek Mining released Q1 2023 production reports. ON FINANCING, Monumental Minerals and Excellon Resources announced the closing ($2.2 M) and opening (up to C$10 M) of financing rounds, respectively. ON RESOURCES AND DEVELOPMENT, Minera Alamos advances on the permitting process for mining at Cerro de Oro in Zacatecas. Vizsla Silver reported drilling results from its Panuco property in Sinaloa. ON DEALS AND CORPORATE ISSUES, Silver Dollar is exercising its option to acquire 100% interest on La Joya property in Durango. Radius Gold extended the exclusivity agreement term with Fresnillo PLC on its Plata Verde Project in Chihuahua. ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUES

  • On the proposed changes to the Mining Law. For the last two weeks there have been many declarations by mining industry members and representatives against many of the proposed changes. There is a widespread movement calling for open discussions of the many elements on this proposal that are to pose a grave threat to foreign and local investment on the industry, affecting a large population base and increased deleterious effects in the economy on the long run. The AIMMGM (Asociación de Ingenieros Mineros, Metalurgistas y Geólogos de México) is asking Congress to organize an open parliament on the subject to discuss the merits and negative implications of the proposed changes.
  • The Mexican federal government qualified Vulcan Minerals $1.9 billion compensatory demand as unfounded on its reply to Centro Internacional de Arreglo de Diferencias Relativas a Inversiones courtroom. Vulcan has been quarrying limestone in Quintana Roo for more than 30 years, and has been pointed by the government as the culprit of an ecological disaster.
  • Mexico’s Best Drilling intercepts on Q1 2023

ON EXPLORATION

  • Tocvan Ventures Corp. provided the results from a leach study from its Pilar property in Sonora. According to the results, 95 to 99% Au, 73 to 97% Ag can be recovered using “gravity concentration followed by agitated cyanide leach of the gravity tails”.

ON MINING

  • Endeavour Silver Corp. reported first quarter 2023 production of 1.62 M Oz Ag 9,342 Oz Au (or 9,342 Oz AgEq. At Guanaceví, in Durango, 102.4 K tonnes were milled at a rate of 1,138 tonnes per day (tpd), averaging 511 gpt Ag, 1.42 gpt Au, recovering 85.6% Ag, 89.6% Au, to produce 1.44 M Oz Ag, 4,188 Oz Au. At Bolañitos, in Guanajuato, 109.7 K tonnes were milled at a rate of 1,208 tpd, averaging 61 gpt Ag, 1.70 gpt Au, recovering 86.1% Ag, 86.8% Au, to produce 183.6 K Oz Ag, 5,154 Oz Au.
  • Guanajuato Silver Company Ltd. announced consolidated production results for the year 2022. Production from El Cubo mines complex, Valenciana mines complex and San Ignacio mine in Guanajuato involved 410.3 K tonnes mined, 418.8 tonnes milled, recovering 86.0% Ag, 84.5% Au, 88.7% Pb, 84.5% Zn, to produce 1 M Oz Ag, 11,174 Oz Au, 1.3 M Lb Pb, 1.9 M Lb Zn, or 2.13 M Oz AgEq, at cash cost $15.84 per Oz AgEq and AISC of $21.55 per Oz AgEq. At the end of 2022 the company had cash and cash equivalents of $8.8 M and $1.7 M of working capital.
  • Fortuna Silver Mines Inc. reported production results for the first quarter of 2023, including figures from its operations in Mexico. During the period the San Jose mine in Oaxaca produced 1.3 M Oz Ag, 8,231 Oz Au.
  • Torex Gold Resources Inc. reported Q1 2023 production from its El Limon-Guajes operations in Guerrero. During the period 10.2 K tonnes of ore per day (tpd) were mined from open pits, 93.7 K tpd of waste moved (waste to ore strip ratio of 9.2) and 1,738 tpd of ore were mined from underground for a total of 13,703 tpd processed at a grade of 3.50 gpt Au, recovering 87.8% Au to produce 122,918 Oz Au. “… the Company made over $75 million in tax payments including the annual payment of the 7.5% mining tax, corporate tax instalments, and true-up of taxes outstanding at the end of 2022”.
  • Gold Resource Corp. released production results from its Don David mine in Oaxaca in Q1 2023. During the period 117.8 K tonnes were milled at a rate of 1,420 tonnes per day, averaging 2.33 gpt Au, 94 gpt Ag, 0.37% Cu, 1.7% Pb, 3.9% Zn, to produce 7,171 Oz Au, 322.7 K Oz Ag, 336 tonnes Cu, 1,559 tonnes Pb, 3,837 tonnes Zn.   
  • Gatos Silver Inc. announced production results for first quarter 2023 at its Cerro Los Gatos property in Chihuahua. During the period 260.4 K tonnes were milled at a rate of 2,894 tpd, averaging 329 gpt Ag, 3.93% Zn, 1.86% Pb, 0.30 gpt Au, recovering 88.3% Ag, 62.2% Zn, 88.6% Pb, 55.3% Au, to produce 2.43 M Oz Ag, 14.0 M Lb Zn, 9.5 M Lb Pb, 1,380 Oz Au. “… silver production is expected to be higher in the first half of 2023 than in the second half of 2023 based on sequencing of the mine plan. Zinc and lead production are expected to be higher in the second half of the year than in the first half.
  • Orla Mining Ltd. provided an interim operation update for Q1 2023. At the Camino Rojo Oxide mine in Zacatecas, during the period the company mined 3.13 M tonnes (waste to ore ratio 0.61) of which 1.18 M was moved waste, 1.65 M tonnes ore averaging 0.72 gpt Au and 0.30 M tonnes of low-grade ore averaging 0.29 gpt Au for stockpiling. Ore stacked was 1.77 M tonnes @ 0.80 gpt Au, to produce 25,910 Oz Au.
  • Bear Creek Mining Corp. announced production results for the first quarter of 2023. During the period 133.6 K tonnes were mined at its Mercedes mine in Sonora, 134.5 K tonnes milled, at a grade of 2.91 gpt Au, recovering 95.56% Au, to produce 12,025 Oz Au, 40.1 K Oz Ag. “Mercedes mine planning and development began the shift toward higher-grade deposits that utilize cut and fill mining methods during Q1 2023…”.  

ON FINANCING

  • Monumental Minerals Corp. closed a non brokered private placement for gross proceeds of $2.2 M. The company paid aggregate finder’s fees of $110.3 K plus warrants (Jemi, Coahuila).
  • Excellon Resources Inc. announced a non-brokered private placement for aggregate gross proceeds of up to C$10 M. “… the net proceeds of the Offering are expected to be used to advance development of La Negra, fund exploration at La Negra and for general corporate purposes “(La Negra, Hidalgo).

ON RESOURCES AND DEVELOPMENT

  • Minera Alamos Inc. completed the necessary documentation to proceed with its Cerro de Oro project in Zacatecas permitting process. The company expects to conclude negotiations on a lending package for construction once the permits are received.
  • Vizsla Silver Corp. reported results from six holes at the southern extension of the Napoleon vein at its Panuco project in Sinaloa. Highlighted true width intercepts comprise 4.00 m[JC1]  @ 590 gpt Ag, 5.15 gpt Au, 1.0% Pb , 4.4% Zn (including 0.98 m @ 2,025 gpt Ag, 15.74 gpt Au,, 1.7% Pb, 5.2% Zn); 6.10 m @ 156 gpt Ag, 3.63 gpt Au, 7.9% Pb, 6.6% Zn; 5[JC2] .00 m @ 99 gpt Ag, 1.44 gpt Au, 1.2% Pb, 5.1% Zn; 1.70 m @ 268 gpt Ag, 1.41 gpt Au, 0.2% Pb, 0.3% Zn; 3.05 m @ 157 gpt Ag, 2.55 gpt Au, 0.8% Pb, 5.1% Zn; 1.00 m @ 532 gpt Ag, 8.96 gpt Au, 1.5% Pb, 7.1% Zn; 10.65 m @ 54 gpt Ag, 0.93 gpt Au, 0.2% Pb, 0.8% Zn.

ON DEALS AND CORPORATE ISSUES             

  • Silver Dollar Resources Inc. delivered a notice to First Majestic Silver Corp. exercising its option to acquire a 100% interest in La Joya property in Durango.
  • Radius Gold Inc. extend the term of the exclusivity agreement with Fresnillo PLC on its Plata Verde project in Chihuahua. The term of the agreement has been extended three months, implying Fresnillo is to cover US$157 K in payments to the underlying concession owners and landowners, while maintaining the commencement of drilling before 7 July 2023.

ON SOCIAL RESPONSIBILITY

  • No Relevant News.

On the image below: Quartz veined coarse grain intrusive rock in the Sonoran Desert. Picture by Jorge Cirett. Picture by Jorge Cirett.

 [JC1]

 [JC2]

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

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Onyx Vein

By Miguel A Heredia

During the 14th week of the year (April 3rd to April 9th, 2023), at least 16 press releases were announced by companies working in Mexico, with five informing on exploration results, four reporting resources and developments of their properties, four disclosing deals and corporate issues, one communicating production and financial results, one commenting on Mexican Issues, and one announcing financing issues. ON MEXICO ISSUES, Silver Tiger was the only mining company reporting drilling intercepts in Mexico on the first week of April, 2023. ON EXPLORATION, In Sonora, Colibri reported assays results of sampling completed at its recently acquired El Plomo project, and Prismo released assay for 277 samples collected at its Los Pavitos project.  In Chihuahua, Kingsmen expanded its land position at its Las Coloradas project in the southeast part of the Parral mining district. In Coahuila, Monumental reported assays results and proposed drill targets from its Jemi rare earth elements project. Minaurum provided an update on its corporate strategy to develop and acquire a pipeline of potential Tier One precious metals projects.  ON MINING, GoGold reported Q1, 2023 production results from its Parral Tailings project in Chihuahua.  ON FINANCING, Golden Minerals announced that it is selling gold-rich pyrite concentrates from its Velardeña properties on improved terms to a buyer in Manzanillo. ON RESOURCES AND DEVELOPMENT, Heliostar filed a technical report on an update of the 2017 pre feasibility study on the Ana Paula deposit in Guerrero, and announced re-scoping plans for its gold deposit. Avino reported metallurgical results from the testwork program on its oxide tailings project at its Avino property in Durango. Silver Tigre reported drill results from its El Tigre project in Sonora.  ON DEALS AND CORPORATE ISSUES, Impact Silver closed the acquisition of the Plomosas mine in Chihuahua. Excellon announced the reversal of a USD $22M liability from its March 31, 2023 consolidated balance sheet (La Negra Mine, Queretaro). Teck and Agnico Eagle completed the San Nicolas project joint venture agreement. Silver Viper re-negotiated terms of the Rubi-Esperanza option agreement.  ON SOCIAL RESPONSIBILITY, No relevant news.

ON MEXICO ISSUE

  • Silver Tiger Metals Inc., was the only mining company reporting drilling intercepts in Mexico on the first week of April, 2023. Details are shown in the table below:

ON EXPLORATION

  • Colibri Resource Corporation reported assay results of sampling completed at its recently acquired El Plomo project in Sonora. Twenty-five grab samples returned values > 1.0 g/t Au, including 6 with values > 5 g/t Au. “A total of 62 grab samples taken by Colibri returned Au assay values > 0.1 g/t Au. Channel sample values range from 8.03 g/t Au to 0.089 g/t Au over sample lengths (true widths) of 1.7m to 0.1 m. The occurrence and general distribution of higher-grade samples (> 1.0 g/t Au) evident in the historical work was validated with the due diligence sampling”.
  • Prismo Metals Inc., released assay for 277 samples taken at its Los Pavitos project in Sonora, from which 175 samples collected at the Santa Cruz area returned 0.5 g/t Au or more (several with values above 5 g/t Au over widths of 0.20 to 1m, and the best returned 20.3 g/t Au over 0.6m), and seven samples returned over 100 g/t Ag.  Pathfinder elements As and Bi are also generally strongly anomalous. “At least six other target areas have been identified for additional detailed work to develop drilling targets for later this year. Drilling permits are in process and drilling is expected to begin in Q2 2023”.
  • Kingsmen Resources Ltd., expanded its land position at its Las Coloradas project in the southeast part of the Parral mining district in Chihuahua, with the acquisition of a new claim. The new 342 hectares claim is adjacent to its Las Coloradas project and covers prospective geology and structural and geophysical targets.
  • Monumental Minerals Corp., reported assay results and proposed drill targets from its flagship Jemi rare earth elements project in Coahuila. The company has completed four months of exploration consisting of detailed geological mapping, regional stream sediment sampling, ground radiometric geophysical surveys, and lithogeochemical sampling. “A total of 296 assays have been received for surface rock chip samples from Jemi Dykes and Veladora North. Samples that are both peralkaline and anomalous in REEs, Ta, and Nb (116 samples) define four discreet priority areas within Monumental’s mineral concessions”. “Three-dimensional modeling of airborne magnetic data indicates that a larger intrusive body and potential source for the mineralized dykes may lie at a shallow depth (less than 300 m) beneath the dykes. Based on these results, six preliminary drill targets have been chosen and a drilling program is anticipated to commence in June 2023”.
  • Minaurum Gold Inc., provided an update on its corporate strategy to develop and acquire a pipeline of potential Tier One precious metals projects, through a portfolio containing silver projects totaling 37,928 hectares; gold projects totaling 25,933 hectares; and copper projects totaling 12,856 hectares. “Key initiatives for each flagship project include: underground rehabilitation to be followed by mapping, sampling and underground drilling at its Alamos Silver project in Sonora. Results will serve as a basis for an initial resource estimate; at Santa Marta Copper-Gold Project in Oaxaca, an initial drill program has been designed and is awaiting a drill permit from SEMARNAT, the Mexican federal environmental permitting agency; and at Aurifero Gold Project in Sonora, a drill program to test deep targets has been designed and drill permits have been applied for, actively working to further consolidate the district.  Minaurum expects to advance the remainder of its projects through strategic joint ventures in exchange for a combination of royalties, carried interests, and payments such as it received in option agreements with Fortuna Silver Corp. and Infinitum Copper Corp”.

ON MINING

  • GoGold Resources Inc., reported Q1, 2023 production results from its Parral Tailings project in Chihuahua. The company produced 173.7K Oz Ag, 2,106 Oz Au, and 320.3K Lb Cu (400.1K Oz AgEq).

ON FINANCING

  • Golden Minerals Company announced that it is selling gold-rich pyrite concentrates from its Velardeña properties on improved terms to a buyer in Manzanillo. The Company had previously planned to construct a BIOX facility at Velardeña in order to recover the gold in the pyrite concentrate. The Company is now evaluating the economics of a restart of the Velardeña operation without the need for major capital expenditures for the BIOX facility and ancillary equipment. Golden made its first shipment of 142 tonnes of previously produced and stockpiled gold-rich pyrite concentrate under the new terms last week and is currently processing 3,000 tonnes of previously mined and stockpiled mineralized material from the Santa Juana mine for future shipments.

ON RESOURCES AND DEVELOPMENT

  • Heliostar Metals Limited filed a technical report on an update of the 2017 pre feasibility study on the Ana Paula deposit in Guerrero, and announced re-scoping plans for its gold deposit. The Ana Paula deposit has a proven and probable mineral reserve of 14.1M tonnes with grades of 2.38 g/t Au and 6 g/t Ag for a total of 1.08M Oz Au and 2.5M Oz Ag contained. Ana Paula deposit is permitted for open-pit mining. The after-tax NPV (5% discount rate) of the Ana Paula Project is estimated assuming long-term metal prices of $1,600/Oz Au and $20/Oz Ag. The after-tax NPV (5%) of the Ana Paula Project is estimated at $278.6M with a projected after-tax IRR of 30.5%.  “The Ana Paula re-scoping program has four key areas of technical study: engineering, metallurgical, resource modelling, and geotechnical. These studies are designed to evaluate Ana Paula as a high-grade underground mine with a simplified and de-risked milling flow sheet”.
  • Avino Silver & Gold Mines Ltd., reported metallurgical results from the testwork program on its oxide tailings project at its Avino property in Durango. The tailings project hosts gold and silver from past producing historic operations with a 5.7 M tonnes of measured and indicated resource grading 95 g/t of silver equivalent.  The project consists of three types of tailings that are categorized by grade as well as identified in three stratigraphic layers within the deposit based on the time period when they were processed. They are, Ancient Oxides, Recent Oxides and Sulphides, and each type was sampled and tested separately. Metallurgical recoveries for the Ancient Oxides are 89.5% for Au and 90.4% for Ag; for the Recent Oxides are 85.8% for Au and 83.4% for Ag; and for the Sulphides are 82.8% for Au and 76.1% for Ag.
  • Silver Tigre Metals Inc., reported drill results from its El Tigre project in Sonora. Drilling highlights include hole ET-23-445 collared at the Sulphide Zone with 0.24 g/t Au, 130 g/t Ag, 0.16% Cu, 0.8% Pb, and 2% Zn (247 g/t AgEq) over 3.1im including 0.17 g/t Au, 305 g/t Ag, 0.31% Cu, 1.7% Pb, and 4.8% Zn (547 g/t AgEq) over 0.8m, plus 0.24 g/t Au, 115 g/t Ag, 0.58% Cu, 2% Pb, and 3.9% Zn (365 g/t AgEq) over 9.6m, including 0.59 g/t Au, 442 g/t Ag, 2.14% Cu, 7.6% Pb, and 12% Zn (1,270 g/t AgEq) over 1.6m, including 0.52 g/t Au, 857 g/t Ag, 1.74% Cu, 6.4% Pb, and 14.6% Zn (1,700 g/t AgEq) over 0.5m; and hole ET-23-448 collared at El Tigre Vein area, with 0.03 g/t Au, 485 g/t Ag, 0.33% Cu, 0.01% Pb, and 0.08% Zn (522 g/t AgEq) over 4.9m, including 0.04 g/t Au, 1,194 g/t Ag, 0.84% Cu, 0.03% Pb, and 0.2% Zn (1,285 g/t AgEq) over 1m, including 0.05 g/t Au, 1,560 g/t Ag, 1.14% Cu, 0.04% Pb, and 0.3% Zn (1,684 g/t AgEq) over 0.5m.

ON DEALS AND CORPORATE ISSUES

  • Impact Silver Corp., completed the share purchase and sale agreement with Consolidated Zinc Limited to close the acquisition of the Plomosas mine in Chihuahua. Terms of the agreement include a total purchase price of USD $6M consisting of USD $3M in cash and the balance in the form of Impact shares (a total of 11,441,647 shares will be issued), and a 12% net profit interest royalty on production from the Plomosas project to Consolidated.  “Contractual restrictions have been applied to 75% of the share transfer component such that IMPACT Shares will be released from restriction in three equal tranches of 25% of the total number of shares issued to CZL, every 6 months, over 18 months from closing. 25% of the IMPACT Shares will be immediately held by CZL (subject to a statutory 4- month hold period from the date of issuance of the IMPACT Shares)”.
  • Excellon Resources Inc., announced the reversal of a USD $22M liability from its March 31, 2023 consolidated balance sheet, relating to the previously disclosed judgment against one of the Company’s subsidiaries in Mexico (La Negra Mine, Queretaro).
  • Teck Resources Limited and Agnico Eagle Mines Limited completed the joint venture agreement to advance the permitting and development of the San Nicolas project in Zacatecas.  Agnico Eagle, through a wholly-owned Mexican subsidiary, has agreed to subscribe for a 50% interest in Minas de San Nicolás, S.A.P.I. de C.V. for USD $580M. The joint venture partners are planning to submit an Environmental Impact Assessment and Permit application for San Nicolás in the first half of 2023 and are targeting completion of a feasibility study in early 2024.
  • Silver Viper Minerals Corp., re-negotiated terms of the Rubi-Esperanza option agreement.  An addendum of the agreement was signed on April 4, 2023, outlining an overall reduction in this year’s cash payment, and now including the issuance of shares as partial compensation. “The revised agreement provides for the issuance of USD $1.5M in Silver Viper shares issued on signing, followed by a cash payment of USD $200K in June of 2023. In order to complete this agreement, there is a scheduled cash payment of USD $200K, along with the issuance of USD $775K in Silver Viper shares during June of 2024.

ON SOCIAL RESPONSIBILITY

  • No relevant news.

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

On the picture above, an onyx vein in a prospect in San Luis Potosi, Mexico.  Photo by Miguel A Heredia.

The Mining and Exploration News in Mexico: Highlights on the Third Week of March 2023

/ Gambusino Prospector / Leave a comment

By Jorge Cirett

During the 11th week of the year (March 13th to March 19th, 2023), 12 companies working in Mexico released news on their properties. Four companies informed on Q4 and year 2022 financial and operational results. One company opened a financing exercise and one more closed a previously announced private placement. Three companies released drilling results on their advanced properties. A company received a permanent injunction order against an act by SEMARNAT that would sharply reduce the term validity of a needed permit. One more company announced the acquisition of a large adjoining claim block to its flagship property. ON MEXICO ISSUES, no relevant news. ON EXPLORATION, no relevant news. ON MINING, SilverCrest Metals, Americas Gold and Silver, Fortuna Silver and Orla Mining released Q4 2022 production or/and financial reports. ON FINANCING, Silver Viper is to undertake a non-brokered private placement for up to $3 M. Heliostar Metals closed its non-brokered private placement, raising C$20 M. ON RESOURCES AND DEVELOPMENT, Zacatecas Silver released plans on several exploration targets at its Esperanza project in Morelos. Vizsla Silver announced the filing of a technical report with updated mineral resources for its Panuco project in Sinaloa. Defiance Silver released drilling results from testing of the Veta Madre vein system at the San Acacio project in Zacatecas. ON DEALS AND CORPORATE ISSUES, Fortuna Silver received a court ruling that protects its operation while a definitive ruling is obtained regarding the term of a permit granted by SEMARNAT. Colibri Resource acquired the 4,260 ha “Plomo Gold” property adjacent to its flagship Evelyn project in Sonora. ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUES

  • No Relevant News.

ON EXPLORATION

  • No Relevant News.

ON MINING

  • SilverCrest Metals Inc. reported financial results for year 2022. Las Chispas mine construction in Sonora was completed in May 2022 for US$133 M, with revenue from mining allowing for the payment of US$40 M of debt. Commercial production was declared on November 1, 2022. During Q4, 2.3 km of underground development were completed, 65 K tonnes were mined, and 104 K tonnes milled @ 3.67 gpt Au, 382 gpt Ag, recovering 96.9%Au, 93.3% Ag, to produce 11.9 K Oz Au, 1.2 M Oz Ag (2.2 M Oz AgEq). For the year, 201 K tonnes were mined, 188 K tonnes were milled @3.05 gpt Au, 312 gpt Ag, recovering 96.05% Au, 92.5% Ag to produce 17.8 K Oz Au, 1.7 M Oz Ag (3.3 M Oz AgEq). By the end of February 2023, the company’s cash balance was US$71.2 M, which permitted the prepayment of US$15 M and the reduction of the debt outstanding to US$35 M.
  • Americas Gold and Silver Corp. reported financial and operational results from its activities in Mexico and USA. The company obtained revenue of $85.0 M on the production of 5.3 M Oz AgEq, with cash costs of $0.77 per Oz Ag and all-in sustaining costs of $9.64 per Oz Ag. At Cosalá, in Sinaloa, 636 K Oz Ag, 39.3 M Lb Zn, 15.3 M Lb Pb were produced. For 2023, production is projected to be between 1.2 – 1.4 M Oz Ag, 33 – 37 M Lb Zn, 11 – 13 M Lb Pb.
  • Fortuna Silver Mines Inc. reported financial and operating results for Q4 and full year 2022. At San Jose, in Oaxaca, 259.5 K tonnes were milled at a rate of 2,883 tonnes per day, grading 194 gpt Ag, 1.13 gpt Au, recovering 91% Ag, 90% Au, to produce 1.47 M Oz Ag, 8,499 Oz Au, at cash cost $11.16 per Oz AgEq and All-in sustaining cost of $15.53 per Oz AgEq.
  • Orla Mining Ltd. announced results for Q4 and full year 2022. During the year Orla commissioned the Camino rojo Oxide deposit in Zacatecas, producing 32,017 Oz Au in Q4 for a total of 109,596 Oz Au on the year, at an all-in sustaining cost of $634 per Oz Au on Q4 and $611 per Oz Au on the year. By the end of 2022 the company had a cash balance of $96.3 M and net debt of $49.5 M. “A 34,000-metre, 57-hole follow-up drill program will continue to infill the Camino Rojo Sulphides in 2023 (20% of the holes will extend to test the deep potential of the deposit). In addition, 6,500 metres will be drilled on the extensions of the Camino Rojo oxide deposit to update and expand resources and reserves”.

ON FINANCING

  • Silver Viper Minerals Corp. is to undertake a non-brokered private placement financing to raise gross proceeds of up to US$3 M (La Virginia, Sonora).
  • Heliostar Metals Ltd. closed its previously announced non-brokered private placement offering, for gross proceeds of C$20.4 M (Ana Paula, Guerrero).

ON RESOURCES AND DEVELOPMENT

  • Zacatecas Silver Corp. announced exploration plans on several near surface targets and a key deep intrusion target near the Esperanza project in Morelos. The previous operators drilled several holes with high grade intercepts on the western edge beneath the planned open pit. Near surface targets include the Northern contact, Northeastern contact and Colotepec. Planned exploration includes soil geochemistry on a 50 by 100 m grid, land magnetics, and an induced polarization survey. Depending on results obtained, the use of deep-sensing audio-frequency magnetotellurics (AMD) or large-scale controlled audio magnotellurics (CSAMT) may be used.
  • Vizsla Silver Corp. filed a NI-43-10 compliant technical report containing an updated mineral resource estimate on the Panuco project, in Sinaloa.
  • Defiance Silver Corp. provided results for seven drill holes testing the Veta Grande vein system of the San Acacio project in Zacatecas. “These holes were designed to improve the main Veta Grande structural model and to test splays to the Veta Grande system, including the footwall San Herculano structure”. Highlighted core-length intervals comprise 9.57 m @ 157 gpt Ag, 0.12 gpt Au; 8.59 m @ 60 gpt Ag, 0.07 gpt Au, 6.98 m @ 81 gpt Ag, 0.17 gpt Au; 1.15 m @ 45 gpt Ag, 0.34 gpt Au, 1.3% Pb, 0.6% Zn; 2.73 m @ 237 gpt Ag, 0.04 gpt Au; 2.23 m @ 95 gpt Ag, 0.14 gpt Au; 11.22 m @ 24 gpt Ag, 0.34 gpt Au, 0.7% Pb, 1.7% Zn (including 3.40 m @ 50 gpt Ag, 0.71 gpt Au, 1.7% Pb, 3.85% Zn).

ON DEALS AND CORPORATE ISSUES             

  • Fortuna Silver Mines Inc. reported that the Mexican Federal Administrative Court has granted a permanent injunction to Fortuna Silver that allows the San Jose mine in Oaxaca to continue to operate under the terms of the 12-year environmental impact authorization (EIA). Fortuna had to initiate legal proceedings against SEMARNAT after it issued a re-assessment on the term of the EIA. “The grant of the permanent injunction in favor of Minera Cuzcatlan allows the San Jose Mine to continue to operate under the terms of the 12-year EIA until the Court has ruled on the revocation of the EIA”.
  • Colibri Resource Corp. announced the acquisition of the “Plomo Gold” property in the Caborca belt in Sonora. The 4,260 ha property takes Colibri holdings in the area to 4,766 ha. The property has an historical database containing 1,853 rock samples, 1,570 m of drilling in 10 holes, geological mapping and 14.1 Km of induced polarization survey. High priority targets include Banco de Oro, San Perfecto (with an 11.65 m drill intercept averaging 0.66 gpt Au), Pavorreal and Bonancita. “The Plomo property is underlain by a variety of rock types that include Paleoproterozoic metamorphic rocks, a sequence of Jurassic volcanic rocks ranging in composition from andesite to rhyolite, and intrusive rocks that include diorite, granodiorite, and monzonite”.

ON SOCIAL RESPONSIBILITY

  • No Relevant News.

On the image below: Blue sky and copper staining on a project in the Sonoran Desert. Picture by Jorge Cirett.

The Mining and Exploration News in Mexico: Highlights on the Second Week of March, 2023.

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Quartz-Sericite-Pyrite (Phyllic Alteration).

By Miguel A Heredia

During the 10th week of the year (March 6th to March 12nd, 2023), at least 9 press releases were announced by companies working in Mexico, and 4 news published by the media with five commenting on Mexican Issues, three informing on exploration results, two reporting resources and developments, two disclosing deals and corporate issues, and one discussing social issues. ON MEXICO ISSUES, Peñoles and Fresnillo plc recognized the role of women in mining, commemorating his legacy from the beginning of his participation in this sector. In Mexico, women in mining have access to salaries up to 30% higher than the national average. According to figures from the Mexican Social Security Institute (IMSS), more than 66,000 women work in the mining-metallurgical industry, which is equivalent to 16.3% of the total workforce. Proposals to modify the Mining Law lack support, say experts, since the industry complies with at least 4,000 legal obligations, before starting operations of a mining unit. GoGold and Torex reported the best drilling intercepts in Mexico on the second week of March, 2023.  ON EXPLORATION, In Sonora, Aztec Minerals reported that it has commenced the 2023 exploration program at its Cervantes project. In Sinaloa, Prismo announced that it has received authorization for drilling its Palos Verdes project.  In Oaxaca, Vortex Metals provided an update on the environmental works it has conducted at its flagship Riqueza Marina project. ON MINING, no relevant news. ON FINANCING, no relevant news. ON RESOURCES AND DEVELOPMENT, GoGold reported additional drilling results from Los Ricos South, within the Eagle and Main Deposits in Jalisco.  Torex released results from the drilling program conducted at its Media Luna project in Guerrero. ON DEALS AND CORPORATE ISSUES, Guanajuato Silver announced that a new shareholder has acquired a significant equity position in the company (El Cubo, Valenciana, and San Ignacio Mines in Guanajuato). Bear Creek provided an update on the USD $25M payment to Equinox Gold for the Mercedes mine in Sonora. ON SOCIAL RESPONSIBILITY, Endeavour published its inaugural climate strategic report (Guanacevi mine, Durango).

ON MEXICO ISSUE

  • Servicios Industriales Peñoles S.A.B. de C.V., and Fresnillo plc recognized the role of women in mining, commemorating his legacy from the beginning of his participation in this sector. Both companies have maintained a strong gender agenda that offers equal opportunities to women and men, equal salaries that depend on the responsibilities of each employee, programs to prevent harassment and to reinforce female leadership.
  • In Mexico, women in mining have access to salaries up to 30% higher than the national average, with remunerations that exceed MXP $11K a month, above the MXP $5K and up to MXP $7K received by workers in the agricultural and construction sectors, textile employees, drivers and merchants, according to sector estimates. The mining industry has made progress on issues of diversity and inclusion, since in the last 13 years the participation of women has increased, going from 33,260 at the end of 2008 to 66,037 by 2022, according to data from Mining Chamber of Mexico (CAMIMEX).
  • According to figures from the Mexican Social Security Institute (IMSS), more than 66,000 women work in the mining-metallurgical industry, which is equivalent to 16.3% of the total workforce. The number of women who are entering careers in mining engineering, metallurgy and geology is increasing and therefore their presence in the productive field and in the management of the operation of mining units is increasing. Of the total number of women who participate in the industry, 10% hold directive positions and 14% hold management positions.
  • Proposals to modify the Mining Law lack support, say experts, since the industry complies with at least 4,000 legal obligations, before starting operations of a mining unit. The reform initiatives to the Mining Law that have been presented in the Congress of the Union lack support in the real circumstances of this industry or refer to issues that should be the subject of other legal regulations, as uncertainty for this activity. The experts explained that issues such as creating or increasing taxes and/or rights must be ruled out in the legislative drafts, since mining entrepreneurs pay, like any other taxpayer, the Income Tax, the Special Tax on Production and Services, in addition to they also pay mining rights and some local contributions, such as payroll and property taxes, as well as some of the so-called ecological taxes. They added that it is estimated that the tax burden of mining in Mexico is high, compared to other countries with mining activity. Mining is an industry misunderstood and unknown by many, even by those who promote changes to its legislation, for which they trusted that the voice of those who know and participate directly in the industry will be heard.
  • GoGold Resources Inc., and Torex Gold Resources Inc., reported the best drilling intercepts in Mexico on the second week of March, 2023. Details are shown in the table below:

ON EXPLORATION

  • Aztec Minerals Corp., reported that it has commenced the 2023 exploration program at its Cervantes project in Sonora. The plan of the company is to conduct a surface exploration program which will consist of road cut, reconnaissance outcrop, and soil sampling, Terraspec SWIR data collection, and geological mapping. It will comprise collecting over 1,300 geochemical samples, including 950 roads cut, 120 soils, and 250 outcrop chips.
  • Prismo Metals Inc., announced that it has received authorization for drilling its Palos Verdes project, located in the historic Panuco-Copala mining district in Sinaloa. The company plan is to complete a 2,500m drilling program to test the strike length of the Palos Verdes Vein that was not previously accessible until now.
  • Vortex Metals Inc., provided an update on the environmental works it has conducted at its flagship Riqueza Marina project in Oaxaca. Vortex has completed the environmental work activities and has interpreted and organized the information according to predetermined formats required for the Secretariat of Environment and Natural Resources (SEMARNAT). Additionally, the company is working closely with the community looking that a beneficial relationship is established and the general assembly confirms and seals the agreements.

ON MINING

  • No relevant news.

ON FINANCING

  • No relevant news.

ON RESOURCES AND DEVELOPMENT

  • GoGold Resources Inc., reported additional drilling results from Los Ricos South, within the Eagle and Main Deposits in Jalisco. Drilling highlights include hole LRGAG-22-117 on Eagle Deposit with 1.09 g/t Au and 133 g/t Ag (2.87 g/t AuEq or 215 g/t AgEq) over25m, including 1.96 g/t Au and 307 g/t Ag (6.06 g/t AuEq or 454 g/t AgEq) over 9m, including 8.08 g/t Au and 1,460 g/t Ag (27.75 g/t AuEq or 2,066 g/t AgEq) over 1m; hole LR-GAG-22-125 on Eagle Deposit with 2.14 g/t Au and 128 g/t Ag (3.84 g/t AuEq or 288 g/t AgEq) over 42.3m, including 9.66 g/t Au and 486 g/t Ag (16.13 g/t AuEq or 1,210 g/t AgEq) over 7.3m; including 15.35 g/t Au and 866 g/t Ag (26.89 g/t AuEq or 2,017 g/t AgEq) over 2.8m; and hole LRGG-22-232 on Main Deposit with 2.60 g/t Au and 61 g/t Ag (3.41 g/t AuEq or 256 g/t AgEq) over 10.2m, including 24.60 g/t Au and 238 g/t Ag (27.77 g/t AuEq or 2,083 g/t AgEq) over 0.8m.  The Eagle Deposit adjoins the Main Deposit and represents a northern extension of the previously defined Mineral Resource Estimate in the Los Ricos South PEA.
  • Torex Gold Resources Inc., released results from the drilling program conducted at its Media Luna project in Guerrero. This program was focused on upgrading Indicated Resources to the Measured category and targeting spatial gaps in prior drilling to expand Inferred Mineral Resources. Drilling highlights include hole ML22-823D with 40.48 g/t Au, 87 g/t Ag, and 2.76% Cu (46.05 g/t AuEq) over 28.40m; hole ML22-804D with 10.79 g/t Au, 101 g/t Ag, and 3.09% Cu (17.08 g/t AuEq) over 58.08m; hole ML22-768D with 13.98 g/t Au, 112 g/t Ag, and 3.69% Cu (21.39 g/t AuEq) over 26.39m; hole ML22-762A with 13.27 g/t Au, 17 g/t Ag, and 0.46% Cu (14.23 g/t AuEQ9 over 22.43m; hole ML22-835D with 6.72 g/t Au, 29 g/t Ag, and 0.92% Cu (8.58 g/t AuEq) over 34.75m; hole ML22-767D with 4.57 g/t Au, 80 g/t Ag, and 2.50% Cu (9.63 g/t AuEq) over 26.15m; hole ML22-913 with 4.75 g/t Au, 29 g/t Ag, and 1.76% Cu (8 g/t AuEq) over 25.43 g/t AuEq over 25.43m; hole ML22-910 with 1.06 g/t Au, 54 g/t Ag, and 1.25% Cu (3.78 g/t AuEq) over 48.05m; hole ML22-877A with 1.53 g/t Au, 25 g/t Ag, and 0.73% Cu (3.03 g/t AuEq) over 26.77m; and hole ML22-915 with 1.94 g/t Au, 6 g/t Ag, and 0.34% Cu (2.56 g/t AuEq) over 18.05m.

ON DEALS AND CORPORATE ISSUES

  • Guanajuato Silver Company Ltd., announced that a leading US based institutional investor has acquired a significant equity position in the company through the purchase of 24M common shares representing the majority of the equity position previously held by Great Panther Mining Ltd. (El Cubo, Valenciana, and San Ignacio Mines in Guanajuato).
  • Bear Creek Mining Corporation provided an update on the USD $25M payment to Equinox Gold Corp., for the Mercedes mine in Sonora. Bear Creek has revised the terms of the heads of agreement with Equinox to amortize over a two-year period payment of the final USD $25M purchase price installment. “The Revised Terms provide for converting the Deferred Payment into a secured interest bearing promissory note (the “Note”). The Note bears a nominal rate of interest equal to 12.5% per annum plus the greater of (i) 90-day average Secured Overnight Financing Rate and (ii) 2.50% per annum, and matures after a term of two years on October 21, 2024 (the “Maturity Date”). Commencing March 3, 2023, the Note will amortize at a fixed rate of USD $700K per month during the first year until March 3, 2024 and thereafter at an amount per month equal to the greater of (i) USD $700K and (ii) 50% of the free cash flow generated from Mercedes”. In addition to the Note, the Company will issue to Equinox Gold 2,750,000 common shares of the Company.

ON SOCIAL RESPONSIBILITY

  • Endeavour Silver Corp., published its inaugural climate strategic report in which provided specific information in four areas: governance, strategy, risk management, and metrics and targets (Guanacevi mine, Durango).

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

On the picture above, quartz-sericite-pyrite (phyllic alteration) in a porphyry copper project in Sonora, Mexico.  Photo by Miguel A Heredia.

The Mining and Exploration News in Mexico: Highlights on the Third Week of February 2023

/ Gambusino Prospector / Leave a comment

By Jorge Cirett

During the 7th week of the year (February 13th to February 19th, 2023), 13 companies working in Mexico released news on their properties. One company informed on a new exploration model for its projects. Two companies informed on Q4 2022 production and 2023 guidance. One company closed a first tranche on a financing round, while one other closed the previously announced private placement and one more granted shares and stock options to board members. One company filed a PFS on its project and one more updated on the resource estimate for one of its properties. Two companies informed on drilling results and work on their advanced properties. Two companies informed they have earned 50% interest in a project, and one other received notice of claims totaling US$19.7 M. ON MEXICO ISSUES, The Mexican president continues to assert his power by claiming that all lithium reserves will pass to a government’s company. The Sonora State Economy Secretary vigorously backed the importance of the mining industry in the State. ON EXPLORATION, in Coahuila, Southern Empire Resources claims mineralization at its properties in Durango might be of Carlin style. ON MINING, Gold Resource and Capstone Copper released Q4 2022 production or/and financial production reports and guidance for 2023. ON FINANCING, Reyna Silver closed the first tranche of its private placement (C$5 M), Mag Silver completed its bought deal private placement (C$23 M) and Orogen Royalties granted shares and stock options to independent board members. ON RESOURCES AND DEVELOPMENT, Discovery Silver filed the PFS on the Cordero project in Chihuahua. Vizsla Silver reported drilling results at Panuco, in Sinaloa. Avino Silver updated the mineral resource estimate for all deposits at its Avino property in Durango. Impact Silver released drilling results from the Aurora 2 zone at its Capire project in Guerrero. ON DEALS AND CORPORATE ISSUES, Silver Spruce Resources and Colibri Resource earned 50% ownership in the Diamante property in Sonora. Magna Gold received notices on claims totaling $19.7 M. ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUES

  • The Mexican president, Andrés M. López Obrador announced on one of its daily propaganda conferences: “I am to sign the decree to forward the lithium concession, all the reserves, to the Energy Secretariat”. In April 2022 the government declared lithium as a public utility mineral, and its exploitation to be only possible under the public enterprise Litio para México.
  • Margarita Vélez Rocha, the Sonora Economy Secretary, recognized the importance of the mining sector in the State, pointing that it directly employs more than 26 thousand workers and more than 120 thousand indirectly, with 39 municipalities having mining activities and 23 on which it is the main economic activity.

ON EXPLORATION

  • Southern Empire Resources Corp. announced that synchrotron radiation micro-X-ray fluorescence mineralogical studies of drill core samples from its Pedro project in Durango reveal mineralogical similarities to deposits of the Carlin belt in Nevada. Gold mineralization at Centauro and Pedro projects, both in Durango, is associated to hematite-stained, weak to moderately silicified brecciated conglomerate of the Eocene to Oligocene Ahuichila Formation. Historic drilling results include intervals like 5.60 m @ 0.59 gpt Au; 19.82 m @ 0.31 gpt Au; 15.23 m @ 0.58 gpt Au; 50 m @ 0.28 gpt Au; 88.10 m @ 0.24 gpt Au; 112.40 m @ 0.12 gpt Au, with anomalous Ag, As, Sb Tl and Hg.

ON MINING

  • Gold Resource Corp. issued 2023 guidance and suspension of dividends. For 2023 the company expects to produce 17 to 19 K Oz Au, 0.9 to 1.0 M Oz Ag (or 30 to 32 K Oz AuEq) at cash cost $1,000 to $1,050 per AuEq Oz and an AISC of $1,250 to $1,350 per AuEq Oz (Consolidated: $1,650 to $1,750 per AuEq Oz). “the lower grade profile is expected to continue through 2023 and is projected to negatively impact operating cash flows and total cash costs per gold equivalent ounce”, and accordingly “will suspend the quarterly dividend until such time that it may become practicable to reinstate” (Don David, Oaxaca).
  • Capstone Copper Corp. reported financial results for Q4 2022 and year 2022, including figures from its Mexican operations. At Cozamin, in Zacatecas, 3,430 tpd were milled during the quarter to produce 5.8 K tonnes of copper, totaling 24.5 K tonnes Cu on the year at cash cost $1.40 per Lb Cu (which is the lowest cost for Capstone operations). Cash and cash equivalents stood at $170.3 M by the end of the period.

ON FINANCING

  • Reyna Silver Corp. announced the closing of the first tranche of its bought deal private placement for gross proceeds of C$5 M (Guigui and Batopilas, Chihuahua).
  • Mag Silver Corp. completed the previously announced bought deal private placement for aggregate gross proceeds of C$23 M (Juanicipio (44%), Zacatecas).
  • Orogen Royalties Inc. authorized the granting of 156 K restricted share units, 156 K deferred share units and 238 K stock options to independent board members (Royalties on Ermitaño, Sonora).

ON RESOURCES AND DEVELOPMENT

  • Discovery Silver Corp. filed the pre-feasibility study (PFS) on its Cordero property in Chihuahua.
  • Vizsla Silver Corp. reported results from 19 holes on the Copala structure of the Panuco project in Sinaloa. The results represent step-out and infill drilling on the Copala structure that has now been traced for 1,110 m of strike and 400 m downdip. Highlighted true width intervals comprise 2.50 m @ 1,673 gpt Ag, 5.39 gpt Au; 3.35 m @ 428 gpt Ag, 3.64 gpt Au; 2.40 m @ 288 gpt Ag, 1.73 gpt Au; 13.70 m @ 270 gpt Ag, 1.48 gpt Au; 6.00 m @ 648 gpt Ag, 4.29 gpt Au; 3.00 m @ 247 gpt Ag, 2.17 gpt Au; 2.90 m @ 1,010 gpt Ag, 5.91 gpt Au; 6.20 m @ 242 gpt Ag, 1.15 gpt Au; 4.61 m @ 453 gpt Ag, 9.16 gpt Au; 6.00 m @ 176 gpt Ag, 1.12 gpt Au.
  • Avino Silver & Gold Mines Ltd. completed an updated mineral resource estimate for the Avino ET, San Gonzalo, La Potosina, Guadalupe and Oxide Tailing deposits at its Avino property in Durango. Measured and indicated resources comprise 34.7 M tonnes @ 63 gpt Ag, 0.54 gpt Au, 0.39% Cu (or 144 gpt AgEq) containing 70.0 M Oz Ag, 596.6 K Oz Au, 301.4 M Lb Cu. Inferred resources stand at 19.3 M tonnes @ 46 gpt Ag, 0.34 gpt Au, 0.37% Cu (112 gpt AgEq) containing 28.4 M Oz Ag, 212.6 K Oz Au, 158.5 M Lb Cu. Another nearby property, La Preciosa, is also held by Avino and contains 98.6 M Oz Ag, 189.2 K Oz Au in indicated resources and 21.3 M Oz Ag, 35.5 K Oz Au in inferred resources.
  • Impact Silver Corp. announced drill results from the Aurora 2 zone, 1.3 km northeast of the Capire processing plant (in Guerrero), and 16 km south of the company’s active mining operations at the Royal Mines of Zacualpan in Estado de Mexico. The mineralization at the site consists of volcanogenic massive sulfides (VMS) lenses, extending the zone to the west. Highlighted true width intervals comprise 2.39 m @ 106 gpt Ag, 0.42 gpt Au, 0.3% Pb, 0.8% Zn; 3.73 m @ 66 gpt Ag, 0.40 gpt Au, 0.2% Pb, 0.5% Zn; 7.48 m @ 128 gpt Ag, 0.42 gpt Au, 0.8% Pb, 1.8% Zn; 1.01 m @ 138 gpt Ag, 0.49 gpt Ag, 0.5% Pb, 1.1% Zn; 7.95 m @ 63 gpt Ag, 0.52 gpt Au, 0.9% Pb, 2.8% Zn; 2.11 m @ 51 gpt Ag, 0.15 gpt Au, 0.5% Pb, 1.9% Zn; 2.38 m @ 142 gpt Ag, 0.37 gpt Au, 0.2% Pb, 0.5% Zn; 3.28 m @ 34 gpt Ag, 0.24 gpt Au, 0.4% Pb, 1.2% Zn.   

ON DEALS AND CORPORATE ISSUES

  • Silver Spruce Resources Inc. and Colibri Resource Corp. reported the companies have earned 50% ownership interest in the Diamante project in Sonora, while Vendor Bimsa Minera SA de CV retains 50% ownership in the Property. “The 1,057-hectare Diamante property is located adjacent to the Jackie property, a joint venture with Colibri, which covers 1,113 hectares, providing the company with a total of 2,170 hectares of exploration ground. Diamante hosts a number of historical showings and combined with mineralization on the Mezquite and Jackie properties exhibit the geological characteristics of epithermal low to intermediate sulfidation Ag-Au (Pb-Zn)”. With completion of the initial earn-in, Silver Spruce and Colibri together will become equal joint venture partners with the Vendor in BIMCOL Minera, with a six months exclusive period to purchase the remaining 50% by paying either US$2.1 M or US$1.45 M and 2% NSR.
  • Magna Gold Corp. informed the receipt of notices of claims from three of its creditors, Cominivi Servicios S.A. de C.V., Covoro Mining Solutions Mexicana S. de R. L. de C.V. and Sidney W. French S.A. de C.V. for US$6.49 M. Also, a notice of commencement of arbitration with Peal México, S.A. de C.V. was received on a claim of US$13.2 M (San Francisco, Sonora).

ON SOCIAL RESPONSIBILITY

  • No Relevant News.

On the image below: Quartz specularite veining cut by late quartz veinlet on a copper project in the Sonoran Desert. Picture by Abraham López.

The Mining and Exploration News in Mexico: Highlights on the Second Week of February, 2023.

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By Miguel A Heredia

During the 6th week of the year (February 6th to February 12th, 2023), at least 14 press releases were announced by companies working in Mexico, with five disclosing deals and corporate issues, three reporting resources and developments of their properties, three announcing financing issues, two informing on exploration results, and one commenting on Mexican issues. ON MEXICO ISSUES, Golden Minerals Corporation was the only mining company reporting drilling results on the second week of February, 2023.  ON EXPLORATION, In Sonora, Prismo filed a drilling permit application for its Pavito project. In Chihuahua, Golden Minerals reported results from the final 10 holes of the third drill program conducted at its Yoquivo project.  ON MINING, no relevant news.  ON FINANCING, Barksdale announced that 8,050,287 common share purchase warrants were exercised prior to their expiration (San Javier project, Sonora). GoGold closed its previously announced bought deal offering for gross proceed of CAD $65M (Los Ricos North and South projects, Jalisco). MAG Silver completed its previously announced bought deal public offering for gross proceeds of USD $42,558,250 (Juanicipio project, Zacatecas). ON RESOURCES AND DEVELOPMENT, Sonoro Gold announced an updated Mineral Resource Estimate for its Cerro Caliche project in Sonora.  Prime Mining announced the details of its 2023 work program objectives and strategy at its Los Reyes project in Sinaloa and will provide a 2022 progress report in February, 2023. Torex provided an inaugural quarterly update on its Media Luna project in Guerrero. ON DEALS AND CORPORATE ISSUES, Colibri and its partner Silver Spruce declared that have earned 50% ownership interest in the Diamante property in Sonora. Discovery Silver announced that its shares will be listed and commence trading on the Toronto Stock Exchange (Cordero project, Chihuahua). Consolidated Zinc entered into a binding conditional share sale agreement with Impact to sell its Plomosas project in Chihuahua. Vizsla, as part of its incentive compensation plan, granted stock options to directors, officers, employees and consultants of the company (Panuco project, Sinaloa). Heliostar announced that their shares remain in a trading halt due to the acquisition of the Ana Paula project in Guerrero from Argonaut Gold.  ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUE

  • Golden Minerals was the only mining company reporting drilling results on the second week of February, 2023. Details are shown in the table below:

ON EXPLORATION

  • Prismo Metals Inc., filed a drilling permit application for its Pavito project in Sonora. The company anticipates the drilling permit will be approved in early March, 2023. Prismo plans to conduct an initial 2,500m drill program in the first half of 2023.
  • Golden Minerals Company reported results from the final 10 holes of the third drill program conducted at its Yoquivo project. Drilling highlights (widths reported are true widths) include hole YQ-22-028 with 3.81 g/t Au and 1,585 g/t Ag over 0.76m on the New Vein, plus 1.16 g/t Au and 105 g/t Ag over 0.80m on the Pertenencia Hangingwall Vein, plus 4.25 g/t Au and 449 g/t Ag over 1.16m on the Camila Hangingwall Vein, plus 1.45 g/t Au and 510 g/t Ag over 4.80m on the Camila Vein; hole YQ-22-031 with 3.86 g/t Au and 668 g/t Ag over 2.29m on the Pertenencia Vein; and hole YQ-22-034 with 1.3 g/t Au and 545 g/t Ag on the San Francisco Hangingwall Vein.

ON MINING

  • No relevant news.

ON FINANCING

  • Barksdale Resources Corp., announced that 8,050,287 common share purchase warrants, with an exercise price of $0.55 were exercised prior to their January 31, 2023 expiry. “The warrant exercises generated gross proceeds of approximately $4.4M, with approximately $3.8M coming from warrant exercises in January 2023. As of February 3, the Company’s unaudited cash position is approximately $6.6M with issued capital of 80,239,886 common shares. (San Javier project, Sonora).
  • GoGold Resources Inc., closed its previously announced bought deal offering of 28.9M common shares at a price of CAD $2.25 for gross proceed of approximately CAD $65M. Net proceeds will be used to advance the Los Ricos North and South projects in Jalisco. A syndicate of underwriters hold an option to purchase up to an additional 4,335,000 common shares at a price of CAD $2.25 per common share, exercisable in whole or in part, on or before March 10, 2023.
  • MAG Silver Corp., completed its previously announced bought deal public offering of 2,905,000 common shares, including 170,000 common shares issued upon the partial exercise of the over-allotment option, at a price of USD $14.65 per common share for gross proceeds of USD $42,558,250. Net proceeds will be used to fund exploration on the Juanicipio and MAG´s other projects, certain sustaining capital requirements at the Juanicipio project, and for working capital and general corporate purposes.

ON RESOURCES AND DEVELOPMENT

  • Sonoro Gold Corp., announced an updated Mineral Resource Estimate (MRE) for its Cerro Caliche project in Sonora, in accordance with the requirements of NI 43-101.  The MRE, with an effective date of January 26, 2023 is based on 59,500m of drilled data including 544 drill holes, 17 trenches and assays for 57,500m of the drilled data. The pit constrained MRE include an indicated resource of 19.9M tonnes with grades of 0.44 g/t Au and 3 g/t Ag (0.46 g/t AuEq) for a total of 280K Oz Au and 2.23M Oz Ag (290K Oz AuEq) contained, and inferred resources of 10.55M tonnes with grades of 0.42 g/t Au and 4 g/t Ag (0.44 g/t AuEq) for a total of 140K Oz Au and 1.34M Oz Ag (150K Oz AuEq).
  • Prime Mining Corp., announced the details of its 2023 work program objectives and strategy at its Los Reyes project in Sinaloa and will provide a 2022 progress report in February, 2023. The company has completed 110,000m of drilling in 2021 – 2022 to contribute to an updated NI 43-101 Mineral Resource Estimate (MRE) which is expected to be released in Q2, 2023. For 2023, Prime has budgeted initial 35,000m in  step-out drilling along the three known deposits (Guadalupe, Z-T, and Central), as well as in generative exploration drilling at key targets in the Los Reyes mining district. Additionally, Prime plans to continue metallurgical test work and metallurgical domain classification of the deposits; to complete preliminary geotechnical analysis of the resource areas; and further mining assessment to advance the property to a potential future development. The company also will continue with the environmental base line work as well as the work dialogue with the community with strong emphasis on water programs and education.  All these programs are fully funded for 2023 with the completion of an over-subscribed $21M private placement on December 22, 2023.
  • Torex Gold Resources Inc., provided an inaugural quarterly update on its Media Luna project in Guerrero. Development of Media Luna is well underway with the project tracking to schedule and to budget. Capital expenditures related to the development of Media Luna are unchanged at USD $874.5M. As at year-end, Torex had commitments in place for USD $229.7M of project expenditures, including USD $124.7M of expenditures incurred. Torex expects to incur USD $390M to USD $440M of capital expenditures at Media Luna in 2023, which is forecasted to be the peak year of investment. All critical path engineering is on track, focused on finalization of key process equipment sizing and specifications as well as continued detailing of the new flotation plant. The Guajes Tunnel and South Portals advanced steady. Breakthrough of the Guajes Tunnel on the south side of the Balsas River remains on track for Q1 2024. The tunnel has successfully crossed under the Balsas River with no issues related to ground conditions or water. Additionally, multiple surface constructions have advanced steady. The company anticipates first production in late 2024.

ON DEALS AND CORPORATE ISSUES

  • Colibri Resource Corporation and its partner Silver Spruce Resources declared that have earned 50% ownership interest in the Diamante property in Sonora. The vendor, Bimsa Minera S.A. de C.V. , retains the remainder 50% ownership interest in the property.
  • Discovery Silver Corp., announced that its shares will be listed and commence trading on the Toronto Stock Exchange (TSX) under the symbol “DSV”, effective as February 3, 2023 (Cordero project, Chihuahua).
  • Consolidated Zinc Limited entered into a binding conditional share sale agreement with Impact Silver Corp., to sell its 100% legal and beneficial interest in Minera Latin American Zinc S.A.P.I. de C.V., a subsidiary of the company that owns the Plomosas project in Chihuahua for USD $6M. The sale agreement for the proposed transaction consist of USD $3M in cash and USD $3M in Impact Silver shares, and the payment of a 12% net profit interest royalty.
  • Vizsla Silver Corp., as part of its incentive compensation plan, granted 2,130,000 stock options at an exercise price of $1.60 and 1,133,572 restricted share units to directors, officers, employees and consultants of the company (Panuco project, Sinaloa).
  • Heliostar Metals Inc., announced that their shares remain in a trading halt due to the acquisition of the Ana Paula project in Guerrero from Argonaut Gold, since this kind of transactions require a number of key documents for the security exchange.

ON SOCIAL RESPONSIBILITY

  • No relevant news.

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

On the picture above, an old adit driven along low-angle sheeted quartz veins in an orogenic gold prospect in Sonora Mexico.  Photo by Miguel A Heredia.