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

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Slickensides on a fault plane

By Miguel A Heredia

During the 36th week of the year (September 4th to September 10th, 2023), at least 19 press releases were announced by companies working in Mexico, with 10 reporting resources and development of their properties, four disclosing deals and corporate issues, two commenting on Mexican issues, two informing on exploration results, and one announcing financing issues. ON MEXICO ISSUES, Silver Bull secured USD $9.5M litigation funding to pursue damages claim against the Mexican government (Sierra Mojada property, Coahuila). Torex Gold, Fortuna Silver, Reyna Silver, and Prime Mining reported the best drilling intercepts in Mexico on the fourth week of August, 2023. ON EXPLORATION, In Chihuahua, Reyna Silver reported results from three initial holes of its 2023 drilling campaign being conducted at its Batopilas project in Chihuahua.  In Oaxaca, Vortex Metals completed an environmental study at its Zaachila project.  ON MINING, no relevant news.  ON FINANCING, Aura Minerals announced that its common shares are now eligible for trading in the United States on the OTCQX® Best Market under the symbol “ORAAF” (Aranzazu Mine, Zacatecas).  ON RESOURCES AND DEVELOPMENT, Gatos Silver announced that it will report an updated mineral reserve estimate, mineral resource estimate and life of mine plan for its Cerro Los Gatos Mine, Chihuahua. Kootenay reported that it has initiated a new phase of diamond drilling at its Columba project in Chihuahua.  Fortuna released drilling results and announced the discovery of the Yessi Vein, a new blind mineralized structure at its San Jose mine in Oaxaca. SilverCrest filed an updated independent technical report for its Las Chispas mine operation in Sonora. Torex reported results from the 2023 drilling program at its EPO deposit at its Media Luna project, Guerrero. Prime Mining released drill results from its ongoing 60,000m drilling program conducted at its Los Reyes project in Sinaloa. Sierra Madre provided an update of its activities at the recently acquired, past-producing La Guitarra Mine in the State of Mexico. Chesapeake provided a metallurgical and mineralogical update for its Metates deposit in Durango.  Heliostar released drill results of three new holes completed, expanded the limits of the High Grade Panel, and defined new growth targets at its Ana Paula project in Guerrero. ON DEALS AND CORPORATE ISSUES, Argonaut appointed its new Vice President, Exploration (San Agustin mine, Durango). Plata Latina announced management changes (El Naranjillo, Guanajuato).  Gatos announced results from its annual general meeting of shareholders (Los Gatos Mine, Chihuahua). Argonaut appointed its new VP Exploration (El Castillo mine, Durango). Tarachi Gold announced Directors changes (Tarachi project, Sonora). ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUE

  • Silver Bull Resources Inc., secured USD $9.5M litigation funding to pursue damages claim against the Mexican government under the agreement between the United States of America, Mexico, and Canada and the North American Free Trade Agreement. The arbitration arises from Mexico’s unlawful expropriation and other unlawful treatment of Silver Bull and its investments resulting from an illegal blockade of Silver Bull’s Sierra Mojada project that began in September 2019 and continues to this day.
  • Torex Gold Resources inc., Fortuna Silver Mines Ltd., Reyna Silver Corp., and Prime Mining Corp., reported the best drilling intercepts in Mexico on the first week of September, 2023. Details are shown in the table below:

ON EXPLORATION

  • Reyna Silver Corp., reported results from three initial holes of its 2023 drilling campaign being conducted at its Batopilas project in Chihuahua. Drilling highlights include hole BA23-58 collared on the San Roberto-Roncesvalles Vein/Structure with 218 g/t Ag over 30m, including 616 g/t Ag over 9m, including 1,405 g/t Ag over 1.45m, including 936 g/t Ag over 1.50m; hole BA23-57 collared on the Escritorio Vein with 1,360 g/t Ag over 0.25m, and 6,440 g/t Ag over 0.20m; and hole BA23-60 collared also on the Escritorio Vein with 1,342 g/t Ag over 0.80m.
  • Vortex Metals Inc., completed an environmental study at its Zaachila project, Oaxaca. “The outcomes of the now-completed study will form the basis of an Environmental Impact Assessment (EIA) report, to be submitted to the Federal Environmental Office, SEMARNAT. This report will support Vortex Metals’ application for advanced mineral exploration activities, including drilling, as it advances its pursuit of high-grade copper targets identified in earlier geochemical targeting analyses”.

ON MINING

  • No relevant news.

ON FINANCING

  • Aura Minerals Inc., announced that its common shares are now eligible for trading in the United States on the OTCQX® Best Market under the symbol “ORAAF”. The DTC is a subsidiary of the Depository Trust & Clearing Corporation, a U.S. company that manages the electronic clearing and settlement of publicly traded companies (Aranzazu Mine, Zacatecas).

ON RESOURCES AND DEVELOPMENT

  • Gatos Silver Inc., announced that it will report an updated mineral reserve estimate, mineral resource estimate and life of mine plan for its Cerro Los Gatos Mine, Chihuahua. The company will host a conference call and webcast to discuss the 2023 updates.
  • Kootenay Silver Inc., reported that it has initiated a new phase of diamond drilling at its Columba project in Chihuahua. To date Kootenay has drilled 135 holes for just over 27,000m on the project. The new phase will consists of a minimum of 3,000m in 12-15 holes focused on expanding wide high-grade intercepts hit to date in the west-northwest trending D-Vein, and was designed “to culminate in a maiden resource for the third quarter of next year as financing will allow at which point a decision on a PEA can be made”.
  • Fortuna Silver Mines Ltd., released drilling results of three infill holes totalling 1,118m, and announced the discovery of the Yessi Vein, a new blind mineralized structure at its San Jose mine in Oaxaca. Drilling highlights (true widths reported) include hole SJOM-1387 with 2.25 g/t Au and 243 g/t Ag (412 g/t AgEq) over 0.5m, plus 2.27 g/t Au and 229 g/t Ag (400 g/t AgEq) over 0.9m, plus 6.40 g/t Au and 820 g/t Ag (1,299 g/t AgEq) over 9.9m, including 27.52 g/t Au and 3,516 g/t Ag (5,580 g/t AgEq) over 0.9m; hole SJOM-1391 with 5.92 g/t Au and 779 g/t Ag (1,223 g/t AgEq) over 0.4m, plus 3.13 g/t Au and 386 g/t Ag (621 g/t AgEq) over 5m, including 3.51 g/t Au and 455 g/t Ag (718 g/t AgEq) over 1m, including 4.32 g/t Au and 488 g/t Ag (852 g/t AgEq) over 0.5m, plus 10.36 g/t Au and 1,525 g/t Ag (2,302 g/t AgEq) over 0.3m; and hole SJOM-1396 with 2.5 g/t Au and 295 g/t Ag (483 g/t AgEq) over 0.7m. “Extension drilling intersected a new blind zone of alteration and brecciation (the Jessi Vein), approximately 200m further east of the Victoria Mineralized Zone, resulting in the intersection of 1,299 g/t AgEq over 9.9m in hole SJOM-1387 and 621 g/t AgEq over 5m in hole SJOM-1391, highlighting the potential size and strength of San Jose´s mineralized system.”
  • SilverCrest Metals Inc., filed an updated independent technical report for its Las Chispas mine operation in Sonora. The report titled “Las Chispas Operation Technical Report” is dated September 5, 2023, and has an effective date of July 19, 2023.
  • Torex Gold Resources Inc., reported results from the 2023 drilling program at its EPO deposit at its Media Luna project, Guerrero. “Results from the 2023 program continue to highlight the potential to upgrade Inferred resources to the Indicated category and expand Inferred resources through step-out drilling to the north and south of the deposit”. Drilling highlights from the 2023 resource categorization and resource expansion program are shown in the tables 1 and 2:

Through the end of July, approximately 24,140 m and 54 holes were drilled as part of the 2023 drilling program at EPO, with assays received for 34 holes. This represents 72% of the approximately 35,000 m of total drilling planned at EPO in 2023.

  • Prime Mining Corp., released drill results from its ongoing 60,000m drilling program conducted at its Los Reyes project in Sinaloa. The reported drill results are from Las Primas and Fresnillo generative targets. Las Primas is outside of the previously reported 2023 Mineral Resource Estimate, while Fresnillo is a highly prospective earlier stage target, where drilling intercepted thick mineralized structures, between the Z-T and Central Zones. Drilling highlights (true widths reported) at Las Primas include hole 23LP-14 with 10.85 g/t Au and 115 g/t Ag (12.34 g/t AuEq) over 2.45m, including 15.4 g/t Au and 162 g/t Ag (17.5 g/t AuEq) over 1.70m; hole 23LP-06 with 1.7 g/t Au and 2 g/t Ag (1.73 g/t AuEq) over 9.6m, including 4.88 g(/t Au and 5 g/t Ag (4.94 g/t AuEq) over 2.95m, including 8.2 g/t Au and 8 g/t Ag (8.3 g/t AuEq) over 1.5m; and hole 23LP-07 with 0.36 g/t Au and 19 g/t Ag (0.6 g/t AuEq) over 4.45m, plus 0.87 g/t Au and 26 g/t Ag (1.2 g/t AuEq) over 14.60m, including 1.87 g/t Au and 33 g/t Ag (2.29 g/t AuEq) over 2.95m, plus 0.94 g/t Au and 21 g/t Ag (1.21 g/t AuEq) over 7.95m. Drilling highlights (true widths reported) at Fresnillo include hole 23FRE-12 with 0.56 g/t Au and 14 g/t Ag (0.74 g/t AuEq) over 23.8m, plus 0.41 g/t Au and 5 g/t Ag (0.41 g/t AuEq) over 20.8m; hole 23FRE-19 with 1.06 g/t Au and 45 g/t Ag (1.65 g/t AuEq) over 10.9m, including 6.63 g/t Au and 438 g/t Ag (12.3 g/t AuEq) over 0.85m, plus 0.48 g/t Au and 13 g/t Ag (0.65 g/t AuEq) over 13.7m, plus 0.31 g/t Au and 9 g/t Ag (0.43 g/t AuEq) over 11.05m; and hole 23FRE-20 with 0.31 g/t Au and 7 g/t Ag (0.4 g/t AuEq) over 10.2m, plus 0.87 g/t Au and 40 g/t Ag (1.39 g/t AuEq) over 7.45m, including 2.12 g/t Au and 109 g/t Ag (3.43 g/t AuEq) over 0.9m, plus 0.33 g/t Au and 7 g/t Ag (0.42 g/t AuEq) over 13.75m.
  • Sierra Madre Gold and Silver Ltd., provided an update of its activities at the recently acquired, past-producing La Guitarra Mine in the State of Mexico. The company is currently working on completing a new resource estimate by year-end in accordance with NI 43-101, concurrent with evaluating historic cost data that would feed into a Mine Restart Study. “Sierra Madre is focused on preparing the mine, plant, and equipment for a prompt restart”. “The Company anticipates that, given adequate funding and assuming project execution tracks internal projections, restart of production at La Guitarra could be feasible within 20-22 months”.
  • Chesapeake Gold Corp., provided a metallurgical and mineralogical update for its Metates deposit in Durango.  The latest results from this phase of metallurgical testwork are very encouraging. “A systematic, methodological approach individually testing several parameters under different conditions is being undertaken in 42 columns. The results have identified certain parameters that provide the conditions where the leach technology oxidizes mineralization at a faster rate than our previous testwork. Under these conditions, we believe the targeted oxidation curve will be achieved and provide the foundation for preparing the pre-feasibility study early next year”. “Chesapeake will continue to advance the metallurgical program. As the columns meet the oxidation curve target and switch to cyanide leaching, additional columns will be loaded and tested to confirm the improved oxidation rates. At the completion of this process, the results will be released outlining the oxidative curves and precious metal recoveries through cyanide leaching. Once sufficient metallurgical work is available, management plans to commence a pre-feasibility study to further de-risk Metates and advance the project toward our goal of developing one of America’s largest gold and silver deposits”.
  • Heliostar Metals Ltd., released drill results of three new holes completed, expanded the limits of the High Grade Panel, and defined new growth targets at its Ana Paula project in Guerrero. These holes are the first to assess mineralization down-plunge of the high grade panel at the core of Ana Paula. Drilling highlights include hole AP-23-303 with 1.31 g/t Au over 64m, plus 6.46 g/t Au over 98m, including 16.39 g/t Au over 33m; hole AP-23-304 with 4.73 g/t Au over 85.5m, including 25.56 g/t Au over 9.5m; and hole AP-23-305 with 3.2 g/t Au over 47.6m, including 22.9 g/t Au over 22.9m, and including 16.15 g/t Au over 2.8m, plus 2.14 g/t Au over 33.1m, including 4.77 g/t Au over 7.4m. These intercepts expand the High Grade Panel to 280m of total length from near surface. It will grow the size of the High Grade Panel in the resource update due in November. The company also defined new growth targets through a combination of new data and review of historic information.  Drill results identified a Parallel Panel target located 50m north of the High Grade Panel with multiple high grade intercepts. Drilling highlights include hole AP-23-299 with 6.95 g/t Au over 38m, including 23.3 g/t Au over 6m; hole AP-23-304 with 10.7 g/t Au over 4m, plus 4.13 g/t Au over 5.5m; and hole AP-23-296 with 13.6 g/t Au over 2m. The company also identified the Deep Expansion Zone beneath the High Grade Panel, with open intercepts. Selective drill intercepts include hole AP-11-70 with 29.1 g/t Au over 13.5m, and hole AP-13-215 with 6.3 g/t Au over 40m. In addition, Heliostar also identified two new targets:  the West Breccia target, with gold mineralization and a pathfinder element signature as strong as the High Grade Panel, and San Luis target, a large jasperoid/vein zone with open gold drill intercepts and untested high gold grades (3.0 m grading 11.35 g/t gold) on surface. The company plans to commence the drill test of these new targets in September, 2023.

ON DEALS AND CORPORATE ISSUES

  • Argonaut Gold Inc., appointed its new Vice President, Exploration (San Agustin mine, Durango).
  • Plata Latina Minerals Corporation announced the retirement of its President and CEO and Chair of the Board of Directors, and the appointment of its replacement, effective immediately (El Naranjillo, Guanajuato).
  • Gatos Silver Inc., announced results from its annual general meeting of shareholders (Los Gatos Mine, Chihuahua).
  • Tarachi Gold Corp., announced the appointment of a new member to its Board of Directors, as well as the retirement of a former Director (Tarachi project, Sonora).

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, slickensides on a fault plane in an epithermal vein-bx system in a project in Durango, Mexico.  Photo by Miguel A Heredia.

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

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Breccia cemented by tourmaline

By Miguel A Heredia During the 32nd week of the year (August 07th to August 13th, 2023), at least 24 press releases were announced by companies working in Mexico, and 3 news published by the media, with twelve five communicating production and financial results, four commenting on Mexican issues, four disclosing deals and corporate issues, four announcing financing issues, two reporting resources and development of their properties,, and one informing on exploration results. ON MEXICO ISSUES, The union leader Carlos Pavón Campos achieved a milestone by obtaining an injunction against the limit on the payment of utilities in the mining sector. The economic impact of the Peñasquito, the largest gold mine in Mexico due to the stoppage of activities is over USD $220M. Heliostar and Coeur Mining reported the best drilling intercepts in Mexico on the second week of August, 2023. ON EXPLORATION, In Chihuahua, Kingsmen released results from 21 surface samples collected on the southeast portion of its Las Coloradas project. ON MINING, Aura Minerals reported Q2, 2023 production and financial results and provided 2023 production guidance (Aranzazu Mine, Zacatecas). Avino reported Q2, 2023 production and financial results from its Avino mine in Durango. Endeavour reported Q2, 2023 production and financial results from their Mexican mine operations. Gatos Silver reported Q2, 2023 financial results from its Cerro Los Gatos mine in Chihuahua, where it owns 70% interest. GoGold announced Q2, 2023 financial results (Parral Tailings project, Chihuahua). Golden Minerals reported Q2, 2023 financial results. Argonaut reported Q2, 2023 production and financial results from their Mexican mine operations. Starcore reported Q1, 2023 production results from its San Martin Mine in Queretaro. SilverCrest reported Q2, 2023 production and financial results from its Las Chispas mine in Sonora. Santacruz Mining reported Q2, 2023 production results from its Zimapan Mine in Hidalgo. Fortuna reported Q2, 2023 production and financial results from its San Jose Mine in Oaxaca.  ON FINANCING, SilverCrest announced that it filed and received acceptance from the Toronto Stock Exchange (TSX) for a notice of intention to make a normal course issuer bid (Las Chispas Mine, Sonora).  GR Silver closed the first tranche of a non-brokered private placement for gross proceeds of $329,875 (Plomosas project, Sinaloa).  DynaResource announced that it has entered into a stock purchase agreement with Ocean Partners, under which the company issued 1M shares of common stock to Ocean Partners in exchange for USD $5M (San Jose de Gracia property, Sinaloa). Galore announced that it has entered into a loan agreement with a dedicated arm’s length shareholder of Galore (Dos Santos project, Zacatecas). ON RESOURCES AND DEVELOPMENT, Heliostar reported results from four holes drilled at its Ana Paula project in Guerrero. Coeur provided an update on the exploration program at its Palmarejo project in Chihuahua.  ON DEALS AND CORPORATE ISSUES, US Antimony announced that a live webcast of a new company investor presentation will be given by Chairman of the Board (Los Juarez project, Qro). Argonaut appointed a new member to its Board of Directors (San Agustin Mine, Durango). Capitan Silver Corp., announced results from its annual and special meeting of shareholders (Cruz de Plata project, Durango). Santacruz announced management changes (Zimapan Mine, Hidalgo). ON SOCIAL RESPONSIBILITY, no relevant news. ON MEXICO ISSUE

  • The union leader Carlos Pavón Campos achieved a milestone by obtaining an injunction against the limit on the payment of utilities in the mining sector. “As part of the payment of utilities for 2022, we should have received around MXP $900M, and only MXP $300M were distributed, where were MXP $600M left, if the Constitution indicates that 10% must be paid of the profits that the companies obtained?”, expressed Carlos Pavón Campos. In an interview, Pavón Campos expressed that this “amparo” could set a precedent, since it is the way for all the workers who were affected in the payment of utilities to receive what corresponds to them, and not the three months of salary or the average of the last three years as established by the Federal Labor Law.
  • The economic impact of the Peñasquito, the largest gold mine owned by Newmont in Mexico due to the stoppage of activities is over USD $220M. Experts are concerned about the repercussions that the conflict will have for the company, the industry and for metal production, and also for the lack of dialogue between the company and the workers of the National Mining Union. The strike began on June 7 after more than 2,000 workers from Section 304 of the National Mining Union accused the company of violating the collective labor contract, of failing to comply with the Federal Labor Law, the T-MEC and the conventions of the International Labor Organization, but also omitting the full payment of profits to the workers. Newmont announced that is willing to negotiate with the Mining Union to lift the strike in Peñasquito. The gold mining company also denied having threatened the workers who are on strike, as denounced by section 34 of the National Mining Union. The gold-producing company assured that they have maintained constant communication with unionized and non-unionized workers to let them know the status of the negotiations they have had with the Union representatives. Finally, the company reiterated that it has complied in time and form with the payment of the PTU corresponding to fiscal year 2022 according to the audited financial statements.
  • Heliostar Metals Ltd., and Coeur Mining Inc., reported the best drilling intercepts in Mexico on the second week of August, 2023. Details are shown in the table below:

ON EXPLORATION

  • Kingsmen Resources Ltd., released results from 21 surface samples collected along the Soledad and Soledad II structures, on the southeast portion of its Las Coloradas project in Chihuahua. Four samples returned >300 g/t Ag; two returned > 200 g/t Ag; and one returned > 100 g/t Ag. The company reported that prospecting and sampling will continue on the property. Las Coloradas is located in the Parral mining district of the Central Mexican Silver Belt.

ON MINING

  • Aura Minerals Inc., reported Q2, 2023 production and financial results and provided a 2023 production guidance for its Aranzazu Mine in Zacatecas (currency is reported in US dollars). The company produced during the second quarter of the year 25,192 Gold Equivalent Ounces (GEO). It also provided an updated 2023 production guidance. Aura plans to produce between 104K-112K GEO at cash and AISC of $783-842 and $1,025-1,101 per GEO sold respectively, considering actual current prices, between 105K-114K GEO at cash and AISC of $710-769 and $936-1,012 per GEO sold respectively, considering actual constant prices, and between 101K-116K GEO at cash and AISC of $685-$788 and $898,1,033 per GEO sold respectively, considering previous current prices. For constant metal prices in the previous guidance, the company considered a Cu price of $3.60/Lb, a Au price of $1,740/Oz, and a Ag price of $22.50/Oz, while for current prices it considered a Cu price of $3.90/Lb, Au price of $1,925/ Oz, and a Ag price of $23.20/Oz.
  • Avino Silver & Gold Mines Ltd., reported Q2, 2023 production and financial results from its Avino mine in Durango (currency is reported in US dollars). The company milled 157,371 tonnes to produce 232.4K Oz Ag, 1,520 Oz Au, and 1.44M Lb Cu (587.3K Oz AgEq) at cash and AISC of $16.33 and  $23.06 per AgEq payable Oz sold. The company reported revenues of $9.2M; mine operating income of $1M; net of none-cash costs of sales of $1.8M; net income of $1.1M or $0.01 per share; EBIDTA of $0.4M; adjusted earnings of $27K; and cash flow from operations of $503K. Avino also reported cash as per June 30, 2023 of $1.2M and a working capital of $4.6M.
  • Endeavour Silver Corp., reported Q2, 2023 production and financial results from their Mexican mine operations (currency is reported in US dollars). The company produced 1.49M Oz Ag and 9,819 Oz Au (2.3M Oz AgEq) at a cash and AISC of $13.52 and $22.15 per Oz payable silver respectively. Endeavour reported revenue of $50M from the sale of 1.3M Oz Ag and 9,883 Oz Au at average realized price of $24.13 per Oz Ag and $1,967 per Oz Au; a cash flow of $11.1M in operating cash flow before working capital changes and $18.8M in mine operating cash flow before taxes; a net loss of $1.1M or $0.01 per share; an adjusted earnings of $2.1M after adjusting for a $3.2M change in the fair value of investments; and a cash position of $43.5M and working capital of $78.2M.
  • Gatos Silver Inc., reported Q2, 2023 financial results from its Cerro Los Gatos mine in Chihuahua, where it owns 70% interest (currency is reported in US dollars). The company milled 265,342 tonnes of 265 g/t Ag, 4% Zn, 1.85% Pb, and 0.26 g/t Au to produce 2M Oz Ag, 14.8M Lb Zn, 9.7M Lb Pb, and 1,200 Oz Au (3.3M Oz AgEq) at co-product and by-product cash cost of $12.72 and $7.10 per Oz of payable AgEq respectively, and co-product and by-product AISC of $17.55 and $14.32 per Oz of payable AgEq respectively.  Los Gatos reported (100% basis) revenue of $58.3M; a cost of sales of $25.8M; a cash flow from operations of $34.3M, a net income of $0.7M; a sustaining capital of $13.1M; an EBITDA of $27.5M,  a free cash flow of $19.7M; and a net loss of $3.6M or $0.05 per share.
  • GoGold Resources Inc., announced Q2, 2023 financial results (currency is reported in US dollars) from its Parral Tailings project in Chihuahua. GoGold produced 203,894 Oz Ag, 1,512 Oz Au and 302,400 Lb Cu (375,112 Oz AgEq). The company reported revenue of $8.5M on the sale of 360K Oz AgEq at a realized per Oz Ag of $21.29 at adjusted cash and AISC of  $15.54 and $20.85 respectively per Oz AgEq; a cash of $98.7M; a net income of $2.6M including interest income of $1.5M.
  • Golden Minerals Company reported its Q2, 2023 financial results (all figures are in US dollars). The company produced at its Rodeo mine in Durango, 1,828 Oz Au and 7,742 Oz Ag at average realized prices of $1,976 per Oz Au and $24.34 per Oz Ag. Golden reported revenue of $5M which includes Rodeo´s sale of metals, sales of Velardeña concentrates, and sales of Rodeo slag material; a net operating margin of $1.1M; cash and equivalents balance as of June 30, 2023 of $3.4M; zero debt and a net loss of $1.5M or $0.21 per share. At June 30, 2023 the company reported current assets of $8.6M including cash and cash equivalents of approximately $3.4M, and account payable and other current liabilities of $5.4M.
  • Argonaut Gold Inc., reported Q2, 2023 production and financial results from their Mexican mine operations (all dollar amounts are expressed in US dollars). At La Colorada Mine, Sonora, Argonaut reported that it sold 5,680 Oz Au; a cost of sales of $8.1M; a cost of sales per Oz Au of $1,425; a cash cost of $6M, and a cash and AISC of $1,059 and $1,217 per Oz Au sold respectively. At San Agustin Mine, Durango, the company sold 12,774 Oz Au; a cost of sales of $21.9M; a cost of sales per Oz Au of $1,717; a cash cost of $17.7M, and a cash and AISC of $1,386 and $1,474 per Oz Au sold respectively. On August 4, 2023, the company signed an agreement to acquire the necessary land to complete mining of the current reserve base at the San Agustin Mine. Subject to receipt of the necessary permit, expected later this year, mining is expected to continue into 2025. At El Castillo Mine, Durango, Argonaut sold 5,502 Oz Au; a cost of sales of $8.54M; a cost of sales per Oz Au of $1,553; a cash cost of $7.44M, and a cash and AISC of $1,353 per Oz Au sold.
  • Starcore International Mines Ltd., reported Q1, 2023 production results from its San Martin Mine in Queretaro. The company milled 57,700 tonnes of 1.13 g/t Au and 14 g/t Ag (1.92 g/t AuEq) at metallurgical recoveries of 83.99% and 45.82% respectively, to produce 1,918 Oz AuEq.
  • SilverCrest Metals Inc., reported Q2, 2023 production and financial results from its Las Chispas mine in Sonora (all amounts are presented in US dollars).  SilverCrest mined 74,400 tonnes and milled 107,900 tonnes of 4.84 g/t Au and 449 g/t Ag with metallurgical recoveries of 96.4% and 97.9% respectively, to recover 16,550 Oz Au and 1.53 M Oz Ag. The company sold a total of 13,400 Oz Au and 1.45M Oz Ag at average realized prices of $1,991 per Oz Au, and $24.36 per Oz Ag. SilverCrest reported revenue of $62M; a cost of sales of $23.7M resulting in mine operating income of $38.3M; an income of $23.7M or $0.16 per share, inclusive of an $8.6M ($0.06 per share) unrealized foreign currency loss; an increased cash balance by $7.6M and bullion holdings by $3.6M during the quarter, after, sustaining capital at Las Chispas of $10.1M and retiring $25M of debt; cash flow from operating activities before changes in non-cash working capital items of $47.5M or $0.32 per share; and cash costs of $7.39 per Oz AgEq sold and all-in sustaining cost (AISC) of $12.70 per Oz AgEq sold based on accelerated spend towards exploration and for sustaining capital to create operational flexibility. The company ended the quarter debt free with treasury assets totaling $59M (cash of $53.4M and gold and silver bullion of $5.6M). Access to an undrawn $70M revolving credit facility remains.  In addition, the company provided production guidance for H2, 2023, it expects to produce 4.8 to 5.2M Oz AgEq at cash and AISC of $7-8.50 and $13.75-15.50 per Oz AgEq sold respectively. For the full 2023 year the SilverCrest expects to produce 9.8-10.2 M Oz AgEq at cash and AISC of $7.50-8.50 and $12.75-13.75 per Oz AgEq respectively.
  • Santacruz Silver Mining Ltd., reported Q2, 2023 production results from its Zimapan Mine in Hidalgo. The company processed 171,668 tonnes of 69 g/t Ag, 0.67% Pb, 2.25% Zn, and 0.33% Cu with metallurgical recoveries of 71%,74$,71%, and 53% respectively to produce 271.1K Oz Ag, 1.9M Lb Pb, 6.14M Lb Zn, and 665.3K Lb Cu (878.8K Oz AgEq).
  • Fortuna Silver Mines Inc., reported Q2, 2023 production and financial results from its San Jose Mine in Oaxaca (all amounts are expressed in US dollars). The company milled 194,887 tonnes of 168 g/t Ag and 1.02 g/t Au at metallurgical recoveries of 91% and 90% respectively, to produce 957.3K Oz Ag and 5,778 Oz Au. Fortuna sold 942.7K Oz Ag and 5,695 Oz Au at realized prices of $24.09/Oz Ag and $1,973/Oz Au.  The company reported a cash cost of $102.77/tonne and a cash and AISC of $15.93 and $24.07 per Oz AgEq respectively. It also reported sustaining expenditures of $3.6M; non-sustaining expenditures of $524K; and brownfield expenditures of $788K.

ON FINANCING

  • SilverCrest Metals Inc., announced that it filed and received acceptance from the Toronto Stock Exchange (TSX) for a notice of intention to make a normal course issuer bid pursuant to TSX requirements permitting the company to purchase up to 7,361,563 common shares of the company, representing approximately 5% of SilverCrest’s total issued and outstanding common shares. As of August 9, 2023 SilverCrest had 147,231,264 issued and outstanding common shares (Las Chispas Mine, Sonora).
  • GR Silver Mining Ltd., closed the first tranche of a non-brokered private placement. The company issued 6,597,500 units for gross proceeds of $329,875. GR Silver paid $8,100 and issued a total of 162,000 warrants as finder´s fees. Each finder’s warrant is exercisable for one common share at a price of $0.08 for two years (Plomosas project, Sinaloa).
  • DynaResource Inc. announced that it has entered into a stock purchase agreement with Ocean Partners UK Limited, under which the company issued 1M shares of common stock to Ocean Partners in exchange for USD $5M. Ocean Partners, through its 100% owned subsidiary in Mexico – MK Metals Trading (MK), and Dyna Mexico have formalized the extension of their commercial offtake agreement through December 31, 2026, and with revision of the next terms: OP / MK agreed to Increase the Advance Credit Line available to Dyna Mexico to USD $17.5M; OP / MK agreed to provide an Option to convert the Advance Credit Line into a Revolving Credit Line, repayable in 12 months, in maximum amount of USD $10M. The Company and Dyna Mexico plan to utilize the funds received from Ocean Partners to further expand and increase test mining and milling activities at San Jose de Gracia project in Sinaloa (SJG), to continue exploration drilling and related exploration activities at SJG, and for general corporate purposes.
  • Galore Resources Inc., announced that it has entered into a loan agreement with a dedicated arm’s length shareholder of Galore. The lender has provided the company with a cash loan of USD $20K.  The Loan shall bear an interest rate of 9% per annum compounded quarterly, due for repayment on August 3, 2024.  The funds will be used for obtaining assay results from the company’s most recent drill program at its Los Gemelos property within its Dos Santos project, Zacatecas.

ON RESOURCES AND DEVELOPMENT

  • Heliostar Metals Ltd., reported results from four holes drilled at its Ana Paula project in Guerrero. Drilling highlights include hole AP-23-300 with 32.1 g/t Au over 2.7m, plus 7.96 g/t Au over 72m, including 31.8 g/t Au over 9.5m; hole AP-23-302 with 5.01 g/t Au over 51.8m, including 11.6 g/t Au over 4.72m, plus 2.63 g/t Au over 17.6m, including 21.4 g/t Au over 1.36m; and hole AP-23-299 with 6.95 g/t Au over 38m, including 15.8 g/t Au over 11m, including 23.3 g/t Au over 6m. These four holes continue to assess mineralization up- plunge of the High Grade Panel at the core of Ana Paula.
  • Coeur Mining Inc., provided an update on the exploration program at its Palmarejo project in Chihuahua. Drilling at Hidalgo encountered the highest gold grades ever at Palmarejo and extended high-grade mineralization along strike to the NW in the direction of the Palmarejo processing facilities. Hidalgo comprises three individual veins: Hidalgo, San Juan, and Libertad. Drilling highlights at Hidalgo Vein include holes HGDH_118 with 15.1m of 2.8 g/t Au and 265 g/t Ag; hole HGDH_127 with 10.6m of 3.4 g/t Au and 248 g/t Ag; hole HGDH_137 with 5.8m of 41.1 g/t Au and 496 g/t Ag; and hole HGDH_151 with 8.7m of 3.0 g/t Au and 142 g/t Ag.  Drilling highlights at San Juan include hole HGHD_145 with 5.6m of 3.1 g/t Au and 240 g/t Ag. Drilling highlights at Libertad include hole HGDH_149 with 7.5m of 3.0 g/t Au and 170 g/t Ag. Coeur also reported that the infill and expansion drilling program completed at La Nacion and Zapata Deposits has been successful. Notable results from the infill drilling program include holes LBDH_237 with 2.2m of 1.51 g/t Au and 177 g/t Ag); Hole LBDH_239  with 3.3m of 1.71 g/t Au and 514 g/t Ag; hole DC3-ZPA-0018 with 3.8m of 8.1 g/t Au and 685 g/t Ag; hole DC3-ZPA-0042 with 5.7m of 2.02 g/t Au and 131 g/t Ag; and hole DC3-ZPA-0048 with 7.4m at 1.98 g/t Au and 86 g/t Ag, plus 2.2m grading 4.16 g/t Au and 307 g/t Ag)

ON DEALS AND CORPORATE ISSUES

  • US Antimony Corporation announced that a live webcast of a new company investor presentation will be given by Chairman of the Board (Los Juarez project, Qro).
  • Argonaut Gold Inc., appointed a new member to its Board of Directors, effective August 10, 2023 (San Agustin Mine, Durango).
  • Capitan Silver Corp., announced results from its annual and special meeting of shareholders (Cruz de Plata project, Durango).
  • Santacruz Silver Mining Ltd., announced that Carlos Silva Ramos is stepping down from his role as CEO and Director due to personal reasons (Zimapan Mine, Hidalgo).

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, breccia cemented by tourmaline in a porphyry copper project in Chihuahua, Mexico.  Photo by Miguel A Heredia.

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

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Quartz-Sericte-Pyrite (Phyllic alteration)

By Miguel A Heredia

During the 26th week of the year (June 26th to July 2nd, 2023), at least 33 press releases were announced by companies working in Mexico, and 2 news published by the media with eleven disclosing deals and corporate issues, eleven announcing financing issues, five reporting resources and developments of their properties, four informing on exploration results, two commenting on Mexican issues, and one communicating production and financial results. ON MEXICO ISSUES, Silver Bull commenced international arbitration proceedings against the United Mexican States for the Mexico’s unlawful expropriation and other unlawful treatment of Silver Bull and its investments. Violent mining takeover in Coahuila; point to followers of Senator Napoleón Gómez Urrutia. ON EXPLORATION, In Sonora, Prismo released trenching sampling results from its Los Pavitos project, and Colibri outlined mineralized structures on the Banco de Oro and Bonancita target areas at its the Plomo project. In Chihuahua, Reyna Silver commenced a drilling program at its Batopilas project. In Sinaloa, Prismo commented that it is currently drilling at its Palos Verdes project. In Durango, Orex secured surface access and core storage facilities for exploration on its Sandra Silver-Gold project. ON MINING, Gatos Silver reported Q1, 2023 financial results for its Cerro Los Gatos mine in Chihuahua where it owns a 70% interest.  ON FINANCING, Golden Minerals entered into a definitive agreement for the purchase and sale of an aggregate of 1,427,587 shares of commons stock at a price of USD $1.45 per unit (USD $2.1M) in a registered direct offering, which was closed later on obtaining the previously announced gross proceeds of USD $2.1M from the direct offering (Rodeo mine, Durango). Avino renewed a new short form base shelf prospectus and a prospectus supplement in Canada, to distribute common shares from time to time pursuant to a sales agreement with Cantor Fitzgerald & Co., H.C. Wainwright & Co., LLC, Roth Capital Partners, LLC, and A.G.P./Alliance Global Partners, in the United States up to the aggregate sales amount of USD $25M (Avino mine, Durango). Endeavour entered into a sales agreement with some Agents to raise up to USD $60M (Terronera project, Jalisco). Advance Lithium announced a non-brokered private placement for gross proceeds of up to $1M (Sarape project, Sonora). Aloro stated that due to market conditions it will not be proceeding with the previously announced private placement dated on March 03, 2023 (Quitovac project, Sonora). Heliostar announced a brokered private placement for gross proceeds of $5M; the same that later on was increased to up to $7M (Ana Paula project, Guerrero). Luca Mining closed the third and final tranche of its previously announced private placement for gross proceeds of CAD $24,896,551   (Tahuehueto project, Durango). Benjamin Hill announced that its previously announced non-brokered private placement has been extended to allow the Company and its investors time to complete and deliver subscription agreements (Sonora Gold project, Sonora). Colibri declared that it intends to conduct a non-brokered private placement for gross proceeds of up to USD $1M (Evelyn project, Sonora).  ON RESOURCES AND DEVELOPMENT, Southern Silver reported that metallurgical scoping tests confirm the technical feasibility of recovering both free cyanide-leachable gold and refractory gold from pyritic material (Cerro Las Minitas project, Durango). Minaurum extended the Environmental Impact Statement (MIA) for the development of its Alamos Silver project in Sonora. Guanajuato Silver provided an updated PEA for its El Cubo Mine Complex in Guanajuato. Luca Mining hit 500 tonnes per day milestone at its Tahuehueto project in Durango. GoGold filed a National Instrument 43-101 PEA technical report for its Los Ricos North project in Jalisco. ON DEALS AND CORPORATE ISSUES, Bear Creek granted incentive stock option to its recently promoted President and CEO (Mercedes Mine, Sonora). Mag Silver, Almaden, Sierra Metals, Goldgroup, Aztec Minerals, and Guanajuato Silver reported results from their annual general and special meeting of shareholders. Goldgroup issued a press release to clarify and retract certain disclosures with respect to the Company’s Cerro Prieto and San Jose de Gracia projects in Sonora and Sinaloa respectively. Canasil announced that the British Columbia Securities Commission revoked the temporary management cease trade order issued against certain insiders of the company (Nora project, Durango). Gatos Silver provided bi-weekly status report in accordance with National Policy 12-203- Management Cease Trade Order (Cerro Los Gatos Mine, Chihuahua). Tarachi has decided to discontinue the option agreement with Exploradora Cobre de Bacanora for the properties located in Sonora (Magistral Mill & Tailings project, Durango).. (ON SOCIAL RESPONSIBILITY, Industrias Peñoles and Fresnillo plc, Mexican mining companies of Grupo BAL, in favor of reforestation.

ON MEXICO ISSUE

  • Silver Bull Resources Inc., commenced international arbitration proceedings against the United Mexican States under the Agreement between the United States of America, Mexico, and Canada, and the North American Free Trade Agreement, for the Mexico’s unlawful expropriation and other unlawful treatment of Silver Bull and its investments resulting from the illegal blockade of Silver Bull’s Sierra Mojada project in Coahuila.
  • Violent mining takeover in Coahuila; point to followers of Senator Napoleón Gómez Urrutia. With short weapons, machetes and bats, people identified as related to the Morenista senator Napoleón Gómez Urrutia seized the town of Hércules, in Coahuila, a place of little more than 8 thousand inhabitants that was generated around the operations of extraction of iron from Minera Del Norte, a subsidiary of Altos Hornos de México (AHMSA). In a statement, the Mining Union indicated that the conflict occurred after a group majority of workers from Minera Del Norte and AHMSA decided to abandon the organization headed by Gómez Urrutia to join the National Democratic Union of Miners, and he has responded the same as he did in Zacatecas, Guerrero, Sonora and other areas, generating violence and stopping the activities of the mining companies. Minera Del Norte is the main iron extraction company in the region; all the material extracted by the workers is sent to Monclova through a 300 kilometer railway, for use as an input in the AHMSA smelting furnaces.

ON EXPLORATION

  • Prismo Metals Inc., released trenching sampling results from its Los Pavitos project in Sonora. Highlights assays include ZA2 (Auras Zone)  with 2.2 g/t Au and 23 g/t Ag over 19m long, including 10.3g/t Au and 104 g/t Ag over 4m long; ZSC9 (Santa Cruz Zone) with 0.5 g/t Au over 8m long; and ZSC10 with 2.3 g/t Au and 13 g/t Ag over 7.8m long. The company intends to explore these mineralized zones by drilling, planned to commence shortly.
  • Colibri Resource Corporation outlined mineralized structures on the Banco de Oro and Bonancita target areas at its the Plomo project in Sonora. At the Banco de Oro target, the mineralization consists of brecciated quartz veins hosted in foliated sericitized and pyrite bearing rhyolites. Recent geological mapping and sampling has covered an area of approximately 41 hectares, extending approximately 500m north of the historic Banco de Oro mine. Gold values were detected in 46 of the 64 analyzed samples, of which 14 samples returned >0.1 g/t Au, with a high grade of 1.45 g/t Au. At the Bonancita target, mineralization consists of four prospects, all of which contain historical assays from outcrop samples returning > 1 g/t Au. Three of the prospects, Bonancita, Bonancita NWI and Bonancita NWII form a NW trend approximately 2 km in length which is coincident with both a strong topographic lineament and with a strong, NW trending, regional scale magnetic gradient lineament. The recent geological mapping and sampling was conducted on the southernmost prospect, where the objective was to evaluate a NW mineralized trend defined by historical sampling including a high value of 7.62 g/t Au. The exploration program covered over 60 hectares and a total of 75 samples were collected for gold analyses, of which 15 samples returned > 0.1 g/t Au and 3 returned > 1 g/t Au with a peak value of 2.72 g/t Au. Exploration work will continue on the Plomo property to support advanced exploration and an inaugural drill program.
  • Reyna Silver Corp., commenced a 3,000m drilling program at its Batopilas project in Chihuahua, to test targets generated over the past year following recognition of the overlapping gold and silver mineralizing events.
  • Prismo Metals Inc., commented that it is currently drilling at its Palos Verdes project in Sinaloa, where six holes have been completed for a total of 928m, mainly along the northeastern extension of the vein system and certain areas in the southwestern portion where previous drilling was performed.
  • Orex Minerals Inc., secured surface access and core storage facilities for exploration on its Sandra Silver-Gold project in Durango. Sandra Silver-Gold is a 60:40 JV between Pan American Silver Corp., and Orex.

ON MINING

  • Gatos Silver Inc., reported Q1, 2023 financial results for its Cerro Los Gatos mine in Chihuahua where it owns a 70% interest. The company reported a revenue of USD $69.9M; a cost of sales of USD $26M; a cash flow from operations of USD $40M; a net income of USD $12.7M; an EBIDTA of USD $39.6M; a free cash flow of USD $28.7M; and a by-product cash cost of USD $2.66 per payable Oz Ag and a by-product all-in sustaining cost of USD $6.11 per payable Oz Ag.

ON FINANCING

  • Golden Minerals Company entered into a definitive agreement for the purchase and sale of an aggregate of 1,427,587 shares of commons stock at a price of USD $1.45 per unit (USD $2.1M) in a registered direct offering. In a concurrent private placement, the Company will issue unregistered warrants to purchase up to 1,427,587 shares of common stock with an exercise price of $1.90 per share which will be exercisable six months from the date of issuance and for a period of five years following initial exercise date. The offering is expected to close on or about June 29, 2023, subject to the satisfaction of customary closing conditions. Later on, the company announced that it closed the registered direct offering obtaining the previously announced gross proceeds of USD $2.1M. Golden will use the net proceeds from the offering for working capital and other general corporate purposes (Rodeo mine, Durango).
  • Avino Silver & Gold Mines Ltd., renewed a new short form base shelf prospectus and a prospectus supplement in Canada, to pursuant to which Avino may distribute common shares from time to time pursuant to a sales agreement with Cantor Fitzgerald & Co., H.C. Wainwright & Co., LLC, Roth Capital Partners, LLC, and A.G.P./Alliance Global Partners, as agents or as principals, for the distribution of the Offered Shares in the United States up to the aggregate sales amount of USD $25M (Avino mine, Durango).
  • Endeavour Silver Corp., entered into a sales agreement with BMO Capital Markets Corp. (the lead agent), CIBC World Markets Inc., TD Securities (USA) LLC, H.C. Wainwright & Co., LLC, B. Riley Securities, Inc., Raymond James (USA) Ltd. and National Bank of Canada Financial, Inc., pursuant to which the Company may, at its discretion and from time-to-time during the 25 month term of the Sales Agreement, sell, through the Agents, such number of common shares of the Company as would result in aggregate gross proceeds to the Company of up to USD $60M. Gross proceeds will be used to fund the construction and development of the Company’s Terronera Mine, to advance the evaluation and development of the Pitarrilla and Parral properties, to assess potential development stage mineral properties for acquisition, to fund the potential acquisition of other development stage mineral properties, for continued exploration on the Company’s existing mineral properties and to add to the Company’s working capital. 
  • Advance Lithium Corp., announced a non-brokered private placement of units at a price of $0.04 per unit. Each Unit shall be comprised of one common share in the capital of the Company and one common share purchase warrant with each warrant being exercisable to purchase one common share at a price of $0.05 per share at any time within 60 months of the date of issuance. The Financing will be for a maximum of $1M resulting in 21,250,000 units being issued. Part of the gross proceeds will be used to advance the Lithium and Sarape projects in Mexico and for general corporate purposes.
  • Aloro Mining Corp., stated that due to market conditions it will not be proceeding with the previously announced private placement dated on March 03, 2023. As announced by News Release on May 9, 2023, the Company closed a first tranche of the private placement for aggregate proceeds of $130K (Quitovac project, Sonora).
  • Heliostar Metals Ltd., announced a brokered private placement of up to 13,513,513 units of the company at a price of $0.37 per unit for gross proceeds of up to $5M, the same that later on was increased up to 14,324,324 units plus additional non-brokered private placement of 4,594,594 units for gross proceeds of up to $7M. Gross proceeds will be used to continue the exploration and development work at its Ana Paula project in Guerrero.
  • Luca Mining Corp., closed the third and final tranche of its previously announced private placement for gross proceeds of CAD $24,896,551   (Tahuehueto project, Durango).
  • Benjamin Hill Corp., announced that its previously announced non-brokered private placement Has been extended to allow the Company and its investors time to complete and deliver subscription agreements. All other terms of the Offering remain the same allowing for a maximum of 3,333,333 Units at a price of $0.12 per Unit for aggregate gross proceeds of approximately $400K (Sonora Gold project, Sonora).
  • Colibri Resources Corporation declared that it intends to conduct a non-brokered private placement of up to 1,000 for gross proceeds of up to USD $1M. Each Unit will consist of one (1) USD $1,000 principal amount 10% unsecured convertible debenture, and 5,416 common share purchase warrants. Each Warrant will entitle the holder to acquire one common share of the Corporation at a price of CAD $0.12 per common share for a period of 24 months following the closing of this offering. Net proceeds will be used for working capital and exploration expenses including drilling on the Evelyn/Plomo and Diamante/El Mezquite/Jackie projects.

ON RESOURCES AND DEVELOPMENT

  • Southern Silver Exploration Corp., reported that metallurgical scoping tests confirm the technical feasibility of recovering both free cyanide-leachable gold and refractory gold from pyritic material through a process of fine grinding and hot atmospheric pressure oxidation followed by cyanide leaching. “Both sulphide and oxide composites were tested as part of the metallurgical program. Mass balance reconciliations on the sulphide composite testwork indicate that 50% of the total gold is recoverable by hot atmospheric pressure oxidation prior to cyanide leaching at an overall 83.9% recovery. An additional 21.5% of gold is recovered into a copper concentrate at payable grades for a total of 71.5% recovery of gold”. It will de-risk and increase the value of the Cerro Las Minitas project in Durango.
  • Minaurum Gold Inc., extended the Environmental Impact Statement (MIA) for the development of its Alamos Silver project in Sonora, which includes the construction of drill pads, clean-up of preexisting roads, and the rehabilitation and reactivation of historical underground mine workings.
  • Guanajuato Silver Company Ltd., provided an updated PEA for its El Cubo Mine Complex in Guanajuato. The upgraded Mineral Resource Estimate (MRE) for El Cubo Mine Complex and financial parameters are shown in the next tables respectively:
  • Luca Mining Corp., hit 500 tonnes per day milestone at its Tahuehueto project in Durango on schedule and budget, but the focus is on towards the ultimate goal of commercial production at 1,000 tonnes per day by year-end.
  • GoGold Resources Inc., filed a National Instrument 43-101 Preliminary Economic Assessment (PEA) technical report for its Los Ricos North project in Jalisco. The table below shows the Mineral Resource Estimate as of May 17, 2023:

Highlights of the PEA, with a base case silver price of USD $23/Oz and gold price of USD $1,800/Oz include an after-tax NPV at a discount rate of 5% of USD $413M with an after-tax IRR of 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 cost of USD $221M, including USD $29M in contingency costs, over an expected 18 months build; an additional expansion capital of USD $137M, and sustain capital cost 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 of USD $9.69 per Oz AgEq; and average annual production of 8.8M Oz AgEq in year 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.

ON DEALS AND CORPORATE ISSUES

  • Bear Creek Mining Corporation granted incentive stock option to its recently promoted President and CEO. The Stock Options will vest periodically in accordance with the 2022 Plan and may be exercised on or before June 26, 2033 at an exercise price of CAD $0.45 per share, being the closing price of the Company’s shares on the TSX Venture exchange on June 23, 2023. (Mercedes Mine, Sonora).
  • Mag Silver Corp., Almaden Minerals Ltd., Sierra Metals Inc., Goldgroup Mining Inc., Aztec Minerals Corp., and Guanajuato Silver Company Ltd., reported results from its annual general and special meeting of shareholders (Juanicipio mine, Zacatecas).
  • Goldgroup Mining Inc., issued a press release to clarify and retract certain disclosures with respect to the Company’s Cerro Prieto and San Jose de Gracia projects in Sonora and Sinaloa respectively. “The Company would like to clarify that the mining key performance indicators in the Company’s Management’s Discussion and Analysis for the period ended September 30, 2022, year ended December 31, 2022 and period ended March 31, 2023 under the heading Financial And Operational Highlights have not been reviewed by the Company’s qualified person as stated and should not be relied upon. The Company is in the process of reviewing its internal procedures regarding qualified person requirements to ensure all future required disclosure are appropriately reviewed by a qualified person. In addition, the disclosure in the 2022 Annual Information Form (AIF) has triggered the requirement to file a technical report for the projects under s.4.2 (1)(f) of NI 43-101 and the Company would like to state that information in the 2022 AIF is not supported by a compliant NI 43-101 technical report, contrary to NI 43-101, and that the information should not be relied on until it has been verified and supported by a technical report”.
  • Canasil Resources Inc., announced that the British Columbia Securities Commission revoked the temporary management cease trade order issued against certain insiders of the company on May 03, 2023 (Nora project, Durango).
  • Gatos Silver Inc., provided a bi-weekly default status report in accordance with National Policy (NP) 12-203- Management Cease Trade Order (MCTO). “Pursuant to NP 12-203, the Company must file bi-weekly status reports in the form of further news releases during the period from the Notice until the MCTO is revoked. The Company reports that since the Notice: (i) there have been no material changes regarding the information contained in the Notice that have not been disclosed in a bi-weekly default status report or in a news release referenced therein; (ii) there have been no failures by the Company in fulfilling its stated intentions with respect to satisfying the provisions of the alternative information guidelines under NP 12-203; and (iii) there has not been any specified default subsequent to the defaults announced in the Notice and the news releases dated May 13, 2022, August 5, 2022, November 11, 2022, March 30, 2023 and May 15, 2023” (Cerro Los Gatos Mine, Chihuahua).
  • Tarachi Gold Corp., after a thorough review of the mineral concessions owned by Exploradora Cobre de Bacanora S de R.L. de C.V., has decided to discontinue the option agreement for the properties located in Sonora. Tarachi is evaluating new precious metal opportunities in North America and has reduced its ongoing overhead costs to conserve its significant cash assets during this review process (Magistral Mill & Tailings project, Durango).

ON SOCIAL RESPONSIBILITY

  • Industrias Peñoles S.A.B. de C.V., and Fresnillo plc, Mexican mining companies of Grupo BAL, in favor of reforestation. Both in the operation of their mining units and in their neighboring communities have implemented sustainability programs through which they encourage all people to join in caring for the flora. All the group’s operating units are located outside protected natural areas or areas of value for biodiversity and have reforestation programs and nurseries, where endemic species of the regions where they operate are cultivated.

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, phyllic alteration (quartz-sericite-pyrite) in a project in Jalisco, Mexico.  Photo by Miguel A Heredia.