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The Mining and Exploration News in Mexico: Highlights on the Third Week of July, 2024

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Vuggy Quartz

By Miguel A Heredia

During the 29th week of the year (July 15th to July 21st 2024), at least 28 press releases were announced by companies working in Mexico, and 2 news published by the media, with ten disclosing deals and corporate issues, five announcing financing rounds, five communicating production and financial results, three commenting on Mexican issues, three reporting resources and development of their properties, two informing on exploration results, and two discussing social issues.   ON MEXICO ISSUES, Rafael Rebollar, general director of Industrias Peñoles, declared that the mining industry in Mexico has been affected due it awaits response on environmental permits. The Government of Mexico is preparing a preliminary report with arguments to declare that Vulcan Materials’ Calica mine in Quintana Roo is located within a “protected natural area”, which represents a possible expropriation of its land. Tocvan /Colibri reported the best drilling intercepts in Mexico on the third week of July, 2024. ON EXPLORATION, In Chihuahua, Kingsmen announced that it has completed an evaluation and interpretation of the ground magnetic data covering the entire Las Coloradas project area. In Durango, Silver Wolf provided an update on its Ana Maria project.  ON MINING, Americas Gold and Silver reported Q2, 2024 production results at its Cosalá operation mine in Sinaloa.Avino Silver & Gold Mines released production results for the Q2, 2024 at their Avino and La Preciosa mines in Durango. First Majestic announced Q2, 2024 production results from their Mexican operations, and provided an updated guidance for H2 and full year 2024. Bear Creek reported Q2, 2024 production results at its Mercedes mine in Sonora.  ON FINANCING, Aztec Minerals announced a non-brokered private placement financing for gross proceeds of up to CAD $1.5M (Cervantes project, Sonora). Garibaldi applied to the TSX Venture Exchange to extend warrant expiry dates (Tonichi project, Sonora). Regency Silver announced a non-brokered private placement financing for gross proceeds of up to CAD $2.5M (Dios Padre project, Sonora). Sailfish reported that the TSX Venture Exchange has accepted a notice filed by the Company of its intention to make a Normal Course Issuer Bid to be transacted through the facilities of the Exchange (Gavilanes project, Durango). Vizsla Royalties entered into a debt settlement agreement dated July 3, 2024 with Vizsla Silver Corp to settle outstanding debt of CAD $1,609,312 owing from Vizsla Royalties to Vizsla Silver (Panuco project, Sinaloa). ON RESOURCES AND DEVELOPMENT, Tocvan and its JV Colibri reported results of five RC drill holes from its El Pilar project in Sonora. Bendito Resources acquired a flotation plan and is finalizing economic studies for critical minerals production from its Oposura project, Sonora. ON DEALS AND CORPORATE ISSUES, Alamos Gold entered into a gold sale prepayment agreement for total consideration of USD $116 million in exchange for the delivery of 49,384 ounces in 2025 (Mulatos mine, Sonora). Golden Minerals announced that it has received payment in full of $2.5M plus VAT for the sale of its Velardeña Mine and associated facilities. Sierra Madre announced that it has secured a binding off-take agreement for 100% of concentrate sales from its La Guitarra mine, Mexico. US Antimony reported the appointment of its Vice President of the company´s Antimony Division (Los Juarez project, Queretaro). GR Silver closed the transaction to acquire 100% of the issued and outstanding shares of Marlin Gold Mining Ltd (Plomosas, Sinaloa).  Florida Canyon entered into a binding agreement to sell its interests in the San Agustin mine, El Castillo mine, La Colorada mine, Cerro del Gallo project and San Antonio project (collectively the “Mexican Business Unit”) to Heliostar Metals Ltd. Florida Canyon advised the market that processes are underway to review strategic alternatives to maximize shareholder value on the Mexican business unit (El Castillo mine, Durango). Florida Canyon announced it has commenced trading on the TSX Venture Exchange (El Castillo mine, Durango). Heliostar entered into a binding agreement with Florida Canyon Gold Inc (FCGI) to acquire a 100% interest in all of FCGI’s mining assets in Mexico for consideration of USD $5M. Sierra Metals announced the completion of the sale of the Cusi mine and surrounding mineral concessions located in Chihuahua. ON SOCIAL RESPONSIBILITY, SilverCrest and Alamos Gold released their 2023 ESG report (Las Chispas mine, Sonora and Mulatos mine, Sonora respectively).

ON MEXICO ISSUE

  • Rafael Rebollar, general director of Industrias Peñoles, declared that the mining industry in Mexico has been affected due it awaits response on environmental permits that must be granted by the federal government for tailings deposits, a system that collects all the waste from the mining process, once the waste has been separated from minerals. Failure to grant it could lead to the suspension of operations of some mining units. For his part, Carlos Pavón Campos, general secretary of the Mining Metallurgical Union FRENTE, said that mines throughout the country face restrictions on tailings dams, which represents a risk. He cited the case of Fresnillo and Velardeña as an example. He commented that in Velardeña, there are around 600 unionized workers and that a fundamental part of the mines are the tailings dams.
  • The Government of Mexico is preparing a preliminary report with arguments to declare that Vulcan Materials’ Calica mine in Quintana Roo is located within a “protected natural area”, which represents a possible expropriation of its land. The report will be evaluated for 30 days by the governments of the state of Quintana Roo, as well as by social organizations, indigenous communities and universities, reported the Secretariat of Environment and Natural Resources (Semarnat) in a statement sent on Thursday. Vulcan Materials said in May that it received an offer from the Government of Mexico that “substantially undervalues” its property. According to Andres Manuel Lopez Obrador, the Administration offered to buy the firm’s assets on the Caribbean coast for USD $2B.  Last May, U.S. senators warned that Mexico’s expropriation of Vulcan land would force them to consider “all available resources” to prevent “the theft of this property,” according to a letter officials sent to the Mexican Foreign Minister Alicia Bárcena.
  • Tocvan Ventures Corp., and JV Colibri Resource Corp., reported the best drilling intercepts in Mexico on the third week of July, 2024. Details are shown in the table below:

ON EXPLORATION

  • Kingsmen Resources Ltd., announced that it has completed an evaluation and interpretation of the ground magnetic data covering the entire Las Coloradas project area in Chihuahua. It has identified two prominent magnetic bodies within a halo of weaker magnetics, and are interpreted to be shallow and probably linked to intrusives. Very positively, the structural picture appears to define a cymoid loop, a feature that generates multiple dilation zones that may host mineralization in both NW- and NE-trending zones along strike and at depth.  These will be targets for drill testing. The project is prospective for epithermal precious metal, skarn and porphyry mineralization.
  • Silver Wolf Exploration Ltd., provided an update on its Ana Maria project in Durango. The company has been planning the upcoming drill program at the El Soldado Claim at the Ana Maria project. “Activities that have been completed to date include: preparing and fine tuning the drill targets, finalizing drilling and QA/QC procedures, selecting a drill contractor to conduct the drilling work, updating and revising the drill budget to reflect the change in Mexican Peso and inflationary costs, finalizing access agreements with the local communities for drilling activities, staffing the appropriate positions to conduct the program with contractors and employees”.

ON MINING

  • Americas Gold and Silver Corporation reported Q2, 2024 production results at its Cosalá operation mine in Sinaloa. It focused on mining the Main Zone at the San Rafael Mine and produced approximately 170K Oz Ag, 8.9M Lb Zn, and 2.6M Lb Pb. Silver production from the Cosalá Operations is expected to increase quarter-over-quarter.
  • Avino Silver & Gold Mines Ltd., released production results for the Q2, 2024 at their Avino and La Preciosa mines in Durango. At Avino, the company processed 130,983 tonnes of 71 g/t Ag, 0.49 g/t Au, and 0.51% Cu with metallurgical recoveries of 88%, 70%, and 88% respectively, to produce 262.9K Oz Ag, 1,456 Oz Au, and 1.3M Lb Cu. At La Preciosa, it processed 9.951 tonnes of 133 g/t Ag and 0.28 g/t Au with metallurgical recoveries of 71% and 63% respectively, to produce 30.1K Oz Ag and 58 Oz Au.
  • First Majestic Silver Corp., announced Q2, 2024 production results from their Mexican operations. Table below shows mine by mine results:

The Company’s financial results for the second quarter of 2024 are scheduled to be released on Thursday, August 1, 2024. The company also provided an updated guidance for H2 and full year 2024. Tables below show mine by mine details:

  • Bear Creek Mining Corporation reported Q2, 2024 production results at its Mercedes mine in Sonora. The company processed 95,727 tonnes of 3.23 g/t Au, with a metallurgical recovery of 93% to produce 9,304 Oz Au and 40,893 Oz Ag.
  • Minera Alamos Inc., provided a brief operations update for its Santana gold mine in Sonora. The company initiated mining and stacking operations at the Nicho Main Zone of its Santana mine. As of the end of June, approximately 900 Oz Au have been stacked on the leach pad, with expectations to increase output to 1,300-1,500 ounces in the coming month. The company is improving access to the mineralization and plans to activate additional trucks to enhance operational efficiency. The average gold grade is around 0.9 g/t, and optimization efforts are underway to improve blasting and crushing processes. Overall, the operations are progressing well, with a focus on returning to a steady state of production as gold prices strengthen.

ON FINANCING

  • Aztec Minerals Corp., announced a non-brokered private placement financing of up to 8,333,334 units of the Company at a price of CAD $0.18 per unit for gross proceeds of up to CAD $1.5M. Part of the gross proceeds will be used to fund ongoing expenses at the Cervantes Project in Sonora, and for general working capital and corporate expenses.  
  • Garibaldi Resources Corp., applied to the TSX Venture Exchange to extend warrant expiry dates. The original term of the Warrants was two years, of which 2,664,472 warrants (the “FT Warrants”) currently expire on July 22, 2024 and 181,250 warrants (the “NFT Warrants”) currently expire on September 16, 2024.  The Company proposes to extend the expiry date for a one year period to July 22, 2025 for the FT Warrants and to September 16, 2025 for the NFT Warrants. None of the Warrants to be amended were issued to finders or agents.  No other terms of the Warrants are to be amended and the exercise price remains at $0.55 (Tonichi project, Sonora).
  • Regency Silver Corp., announced a non-brokered private placement financing for gross proceeds of up to CAD $2.5M, consisting of 16.6M units at a price of CAD $0.15 per unit. Gross proceeds will be used for the upcoming drill program on the company´s Dios Padre project in Sonora, and for general working capital.
  • Sailfish Royalty Corp., reported that the TSX Venture Exchange has accepted a notice filed by the Company of its intention to make a Normal Course Issuer Bid to be transacted through the facilities of the Exchange. The notice provides that the company may, during the 12-month period commencing July 22, 2024 and ending July 21, 2025, purchase up to 3,539,756 common shares of the company in total, being approximately 5% of the total number of shares outstanding as at July 16, 2024 (Gavilanes project, Durango).
  • Vizsla Royalties Corp., entered into a debt settlement agreement dated July 3, 2024 with Vizsla Silver Corp to settle outstanding debt of CAD $1,609,312 owing from Vizsla Royalties to Vizsla Silver by issuing 32,186,240 common shares of the company to Vizsla Silver at a deemed price of CAD $0.05 per common share (Panuco project, Sinaloa).

ON RESOURCES AND DEVELOPMENT

  • Tocvan Ventures Corp., and its JV Colibri Resource Corp., reported results of five RC drill holes from its El Pilar project in Sonora.  Drilling highlights include hole JES-24-95 with 0.15 g/t Au, 1 g/t Ag, and 0.4% Zn over 76.25m, including 0.19 g/t Au, 2 g/t Ag, and 1.49% Zn over 16.78m, including 0.16 g/t Au, 3 g/t Ag, and 2.78% Zn over 7.63m, plus 0.83 g/t Au,  1g/t Ag, and 0.12% Z over 5.09m, and hole JES-24-94 with 0.06 g/t Au and 2 g/t Ag over 120.48m, including 0.09 g/t Au, 3 g/t Ag, and 0.15% Zn over 64.05m, including 0.17 g/t Au, 5 g/t Ag, and 0.22% Zn over 24.04m, including 1.26 g(/t Au, 37 g/t Ag, 0.55% Pb, and 1.16% Zn over 1.53m, plus 0.46 g/t Au, 26 g/t Ag, 0.12% Pb, and 0.57% Zn over 1.52m, plus 0.37 g/t Au, 5 g/t Ag, 0.6% Pb, and 3.05% Zn over 3.05m. Results for three drillholes are currently pending analysis.
  • Bendito Resources Inc., acquired a flotation plan and is finalizing economic studies for critical minerals production from its Oposura project, Sonora. The company also acquired stationary and mobile equipment, including laboratory equipment, primary and secondary mining equipment, blast hole and exploration drills, and other necessary support equipment typically used at mine sites. “The general arrangement of the mine site and related agency approvals are ongoing ahead of anticipated earth and civil works later this year. It is expected that the plant will be operational at the Oposura site in the second half of 2025”.

ON DEALS AND CORPORATE ISSUES

  • Alamos Gold Inc., entered into a gold sale prepayment agreement for total consideration of USD $116 million in exchange for the delivery of 49,384 ounces in 2025. The proceeds of the gold prepayment were used to eliminate gold forward purchase contracts, previously entered into by Argonaut Gold, totalling 179,417 ounces in 2024 and 2025 with an average price of USD $1,838 per ounce. As part of the recently closed acquisition of Argonaut, Alamos inherited Argonaut’s hedge book which included gold forward purchase contracts totaling 329,417 ounces between 2024 and 2027. The average forward prices on the contracts ranged between USD $1,821 and USD $1,860 per ounce (Mulatos mine, Sonora).
  • Golden Minerals Company announced that it has received payment in full of $2.5M plus VAT for the sale of its Velardeña Mine and associated facilities and title has been transferred to a privately held Mexican company. Further and in connection with the Agreements, there has been a delay in the closing of the Minera William agreement entered into to sell the oxide processing plant and the water wells, located in Durango State, Mexico. To date, the Company has received partial payments in the amount of $373,000 for these assets. The remaining $2,627,000, plus VAT on the full sale price, was due on July 1.
  • Sierra Madre Gold and Silver Ltd., announced that it has secured a binding off-take agreement with Swiss-based global minerals trader MRI Trading AG for 100% of concentrate sales from its La Guitarra mine, Mexico.
  • US Antimony Corporation reported the appointment of its Vice President of the company´s Antimony Division (Los Juarez project, Queretaro).
  • GR Silver Mining Ltd., closed the transaction to acquire 100% of the issued and outstanding shares of Marlin Gold Mining Ltd. Marlin is a private British Columbia company which owns, amongst other assets, Oro Gold de Mexico, S.A. de C.V., a private Mexican company that owns 100% of nine concessions, including the past producing La Trinidad mine, located adjacent to the Company’s core Plomosas project, Sinaloa.
  • Florida Canyon Gold Inc., entered into a binding agreement to sell its interests in the San Agustin mine, El Castillo mine, La Colorada mine, Cerro del Gallo project and San Antonio project (collectively the “Mexican Business Unit”) to Heliostar Metals Ltd. At closing, Heliostar will pay cash consideration of USD $5M to the Corporation. In addition, the Corporation is entitled to cash generated by the Mexican Business Unit prior to July 11, 2024 and cash of USD $5M generated from operating cash flow after July 16, 2024, subject to a minimum of USD $2M of net working capital being left in the Mexican Business Unit on closing.
  • Florida Canyon Gold Inc., advised the market that processes are underway to review strategic alternatives to maximize shareholder value on the Mexican business unit (El Castillo mine, Durango).
  • Florida Canyon Gold Inc., announced it has commenced trading on the TSX Venture Exchange. Common shares of the company will commence trading on the TSXV at the opening of the market on July 16, 2024, under the symbol “FCGV” (El Castillo mine, Durango).
  • Heliostar Metals Ltd., entered into a binding agreement with Florida Canyon Gold Inc (FCGI) to acquire a 100% interest in all of FCGI’s mining assets in Mexico for consideration of USD $5M. The projects being acquired were recently spun out from Argonaut Gold Inc. Pursuant to the transaction, Heliostar will acquire those FCGI subsidiaries which collectively own 100% of the following properties: La Colorada Mine, located in Sonora, producing gold from residual leaching of gold while on care and maintenance; San Agustin Mine (formerly the El Castillo Complex), an open pit heap leach gold mine, San Agustin, and a closed open pit heap leach gold mine, El Castillo, located in Durango; Cerro del Gallo, an advanced gold development project located in Guanajuato; and San Antonio, an advanced gold development project located in Baja California Sur. The transaction is expected to close in October 2024.  “As a condition to closing of the transaction, Heliostar and FCGI will enter into an agreement eliminating (a) up to USD $20M in contingent payments, which become payable to FCGI pursuant to the agreement under which Heliostar acquired the Ana Paula Project, and (b) up to USD $150M in conditional option payments and the issuance of a 2% net smelter returns royalty on the San Antonio Project, which might have become payable pursuant to the agreement under which Heliostar acquired an option on the San Antonio Project”. 
  • Sierra Metals Inc., announced the completion of the sale of the Cusi mine and surrounding mineral concessions located in Chihuahua to Minera San Bernabé, S.A. de C.V., a subsidiary of Silverco Mining Corp. (SMC). The company sold the Cusi Mine for USD $2.5M in cash and a 2.0% net smelter royalty in respect of the Cusi Mine granted in favour of Sierra Metals. SMC has the right to purchase one-half of the royalty at any time in exchange for a cash payment to Sierra Metals of USD $5.0M.

ON SOCIAL RESPONSIBILITY

  • SilverCrest Metals Inc., released its 2023 ESG report, which primarily focuses on its Las Chispas mine in Sonora, and also encompasses the surrounding communities in which it operates.
  • Alamos Gold Inc., released its 2023 ESG report, which outlines the company’s progress on its ESG performance in 2023 across its operations, projects and offices (Mulatos mine, Sonora).

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, vuggy silica in a high sulphidation epithermal system in a project in Jalisco, Mexico. Photo taken by Miguel A Heredia.

The Mining and Exploration News in Mexico: Highlights on the First Week of June, 2024

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Quartz-goethite stockwork veining with malachite stains

By Miguel A Heredia

During the 23th week of the year (June 3rd to June 9th, 2024), at least 28 press releases were announced by companies working in Mexico, and 1 news published by the media, with eleven announcing financing rounds, ten disclosing deals and corporate issues, four reporting resources and developments of their properties, two commenting on Mexican issues, one informing on exploration results, and one discussing social issues.  ON MEXICO ISSUES, Claudia Sheinbaum won the election with a significant majority and is likely to maintain restrictions on mining. Tocvan/Colibri and Atacama Copper reported the best drilling intercepts in Mexico on the first week of June, 2024. ON EXPLORATION, In Nayarit, Angel Wings reported results for two recently completed geophysical surveys at its La Reyna project.  ON MINING, no relevant news. ON FINANCING, Fortuna Silver declared that it is offering convertible senior notes due 2029 in an aggregate principal amount of USD $150M, and later on, it announced pricing of convertible senior Notes (San Jose mine, Oaxaca). Sierra Metals reported the refinancing of its $75M long-term debt facility and the entering into a new $95 million facility with new covenants, payment terms, and a 5-year term (Bolivar mine, Chihuahua).  Solaris filed a final short form prospectus to qualify the distribution of 7,150,000 common shares of the company at a price of $4.90 per common share and an additional 1,072,500 common shares at the offering price pursuant to an over-allotment option (La Verde project, Michoacan). Aura declared and approved the payment of dividend for the six month ending June, 2024 (Aranzazu mine, Zacatecas). Infinitum Copper closed its previously announced non-brokered private placement for gross proceeds of CAD $450K (La Adelita project, Sonora).  Silver Spruce announced that the TSX has granted an extension to the closing of the second tranche of its previously announced private placement (Pino de Plata project, Chihuahua). Orex closed the final tranche of its non-brokered private placement for gross proceeds of $662,992 (Sandra project, Durango). Starcore closed its non-brokered private placement, raising $500K in gross proceeds (San Martin mine, Queretaro).   Oroco completed its previously announced non-brokered private placement for gross proceeds of $6.3M (Santo Tomás project, Sinaloa). Dyna Resource extended its USD $4M commercial offtake agreement with Ocean Partners,  increased a revolving credit line to USD $12.5M, and announced that a major shareholder is set to purchase USD $2.5M shares of common stock of Dyna Resource (San Jose de Gracia mine, Sinaloa). ON RESOURCES AND DEVELOPMENT, Tocvan and its JV partner Colibri released results from its 2024 RC drilling program from its Pilar project in Sonora. Silver Storm added a second drill rig to commence a phase 2 drill program at its La Parrilla mine, Durango. Atacama Copper released results from five holes of a 10,000m diamond drilling program at its Cristina project, Chihuahua. ON DEALS AND CORPORATE ISSUES, Colibri announced the listing of its common shares on the Frankfurt Stock Exchange (Pilar project, Sonora). Discovery Silver notified the appointment of its Vice President, Investor Relations (Cordero project, Chihuahua). Sierra Metals filed its management information circular in connection with the company´s upcoming annual meeting of shareholders (Bolivar mine, Chihuahua). Sonoran Desert reported that it has been delayed in filing its audited annual financial statement for its financial year ended December 31, 2023, and the related Management’s Discussion and Analysis and Certifications by the Chief Executive Officer and Chief Financial Officer (Cuatro Hermanos project, Sonora). Bear Creek reported voting results from its annual general meeting of shareholders and announced the appointment of officers (Mercedes mine, Sonora).  Chesapeake reported that that it and Alderley Gold Corp., the Company’s wholly-owned subsidiary, have completed the acquisition of the patents, patent applications and certain other technology rights and assets for the sulphide leaching technology from Hycroft Mining Holding Corporation and its wholly-owned subsidiaries (Metates project, Durango). Angel Wing granted stock options to employees and consultants of the company (La Reyna, Nayarit).  Gatos Silver presented voting results from its annual general meeting of shareholders (Cerro Los Gatos mine, Chihuahua). DynaResource announced the appointment of its President, CEO, Interim CFO and Director (San Jose de Gracia mine, Sinaloa). Vizsla Silver announced that the independent proxy advisory firms ISS and Glass Lewis recommended that Vizsla Silver shareholders vote for the proposed arrangement with Vizsla Royalties Corp at the upcoming special meeting of shareholders. ON SOCIAL RESPONSIBILITY, Gold Royalty published its 2023 Sustainability Report an Asset Handbook (Cozamin mine, Zacatecas).

ON MEXICO ISSUE

  • Claudia Sheinbaum won the Mexican election with a significant majority and is likely to maintain restrictions on mining, including a de facto ban on new open pit mines. Sheinbaum secured the most ballots on Sunday in the nation’s 200-year democratic history, as much as 61% of the vote, according to a sample count by the country’s electoral authority. Challenges for her presidency include Mexico’s security situation, fiscal deficit, and strengthening currency. Sheinbaum’s technocratic approach and alignment with her mentor, outgoing President López Obrador, raise questions about her independence and ability to address key issues facing Mexico.
  • Tocvan Ventures Corp/Colibri Resources Corporation and Atacama Copper Corporation reported the best drilling intercepts in Mexico on the first week of June, 2024. Details are shown in the table below:

ON EXPLORATION

  • Angel Wing Metals Inc., reported results for two recently completed geophysical surveys at its La Reyna project, Nayarit. Results from the initial Induced Polarization (IP) survey and Hybrid Controlled Source Audio Magneto-Telluric (HSAMT) survey have provided valuable information to improve the company’s understanding of this priority target area. “Multiple anomalies were identified by the IP survey for follow up drilling, the strongest of which underlies outcrop exposures of mineralized and altered rocks that host anomalous disseminated gold. IP has also identified or confirmed several new prospects for drilling that correlate well with noted mineralization along structural trends at surface including La Feña, El Zorillo, San Ramon, Dolorosa, El Polo, Celeste, and La Reyna 2. The HSAMT survey has successfully refined the location and attitude of several important structural controls to mineralization that were observed at surface. In addition, it has identified several buried anomalies between a depth of 50 to 300m and has identified the location of a potential intrusion and feeder zone that may be of importance to the district scale mineralization”.

ON MINING

  • No relevant news.

ON FINANCING

  • Fortuna Silver Mines Inc., announced that it is offering convertible senior notes due 2029 in an aggregate principal amount of USD $150M. The Company expects to grant the initial purchasers of the Notes an option for a period of 15 days to purchase up to an additional USD $22.5M aggregate principal amount of Notes. Net proceeds will be used to repay bank indebtedness, to fund working capital requirements, for general corporate purposes and to fund the repayment of its existing 4.65% senior subordinated unsecured convertible debentures, to the extent that such debentures are not converted into shares prior to the redemption date. Later on, the company notified that it has priced its previously announced offering of convertible senior notes due 2029. The company has granted the initial purchasers of the Notes an option for a period of 15 days to purchase up to an additional USD $22.5 million aggregate principal amount of Notes. The Notes will be issued at par value.  The Notes will bear cash interest semi-annually at a rate of 3.75% per annum. The initial conversion rate for the Notes will be 151.7220 common shares of Fortuna per USD $1,000 principal amount of Notes, equivalent to an initial conversion price of approximately USD $6.59 per share. The initial conversion rate represents a premium of approximately 30% relative to today’s closing sale price of the shares and is subject to adjustment in certain events (San Jose mine, Oaxaca).
  • Sierra Metals Inc., reported the refinancing of its $75M long-term debt facility and the entering into a new $95 million facility with new covenants, payment terms, and a 5-year term. The New Facility of $95M will be used to repay the existing $75M loan and the additional $20M will be earmarked for high-return capital projects as well as for transaction fees and expenses. Capital expenditures include the development below the 1120 level and the completion of the shaft at the Yauricocha mine in Peru, as well as for mine developments of over 8,000 meters, a new ore pass, and the initial engineering works on a new tailings dam facility at the Bolivar mine in Chihuahua, Mexico.
  • Solaris Resources Inc., filed a final short form prospectus dated June 3, 2024 to qualify the distribution of 7,150,000 common shares of the company at a price of $4.90 per common share and an additional 1,072,500 common shares at the offering price pursuant to an over-allotment option (La Verde property, Michoacan).
  • Aura Minerals Inc., declared and approved the payment of a dividend of USD $0.35 per common share (approximately USD $25.4M in total) for the six month ending June, 2024. The dividend will be paid in dividend in US dollars on June 28, 2024, to shareholders of record as of the close of business on June 20, 2024 (Aranzazu mine, Zacatecas).
  • Infinitum Copper Corp., closed its previously announced non-brokered private placement for gross proceeds of CAD $450K for the sale of 11,250,000 units at a price of CAD $0.04 per unit. Gross proceeds will be used to re-commencing operations at La Adelita project, Sonora. The company plans to clear a path to the existing adit at Cerro Grande and commence the construction of a short 3m x 3m drive to access the mineralized body identified in earlier drilling campaigns.   
  • Silver Spruce Resources Inc., announced that the TSX has granted an extension to the closing of the second tranche of its previously announced private placement. The company is now required to close the second tranche of the private placement on or before June 14, 2024, but expects to do so in advance thereof (Pino de Plata project, Chihuahua).
  • Orex Minerals Inc., closed the final tranche of its non-brokered private placement for gross proceeds of $662,992. The final tranche was comprised of 4,419,951 units of the company issued at a price of $0.15 per unit. In total, the company raised $1M pursuant to the offering, having previously closed a tranche on May 10, 2024, that raised an aggregate of $337K. The company intends to use the net proceeds from the offering for working capital requirements and other general corporate purposes, which includes legal and financing fees as part of this offering (Sandra project, Durango).
  • Starcore International Mines Ltd., closed its non-brokered private placement, raising $500K in gross proceeds through the issuance of 3,333,333 units at a price of $0.15 per unit. Gross proceeds will be used primarily to conduct metallurgical testing of the carbonaceous ore at Starcore’s San Martin Mine operations in Queretaro.
  • Oroco Resources Corp., completed its previously announced non-brokered private placement for gross proceeds of $6.3M by the issuance of 14,051,127 units of the company at a price of $0.45 per unit. Oroco will use the net proceeds to advance its Santo Tomás project in Sinaloa, as well as working capital and other general corporate purposes.
  • Dyna Resource extended its commercial offtake agreement of USD $4M with Ocean Partners through December 2028 with revised terms including a temporary additional credit line and to increase revolving credit line to USD $12.5M. Additionally, major shareholder Golden Post LLC is set to purchase USD $2.5M shares at a price of USD $1.61 per share. These developments are expected to provide financial support and opportunities for DynaResource´s growth and operations.

ON RESOURCES AND DEVELOPMENT

  • Tocvan Ventures Corp., and its JV partner Colibri Resource Corporation released results from its 2024 RC drilling program from its Pilar project in Sonora. Drilling highlights are shown in the table below:

Over 2,700 meters have been drilled to date for the 2024 program. Results for eight drill holes are currently pending analysis. Drilling is ongoing at Pilar project in Sonora.  

  • Silver Storm Mining Ltd., added a second drill rig to commence a phase 2 drill program at its La Parrilla mine, Durango. The Phase 2 diamond drill program will consist of 7,500m and will be completed over the next three months following up on the initial holes drilled with the aim of converting inferred mineralization to indicated resources.
  • Atacama Copper Corporation released results from five holes of a 10,000m diamond drilling program at its Cristina project in Chihuahua. Drilling highlights (true widths reported) , all from the eastern portion of the Main Guadalupe Vein System include holes ACD24-226 with 0.63 g/t Au, 60 g/t Ag, 1.4% Zn, 0.6% Pb, and 0.04% Cu (2.5 g/t AuEq) over 22m, including 1.08 g/t Au, 283 g/t Ag, 3.8% Zn, 1.5% Pb, and 0.17% Cu (7.87 g/t AuEq) over 1.3m, plus 1.36 g/t Au, 87 g/t Ag, 3.3% Zn, 1.8% Pb, and 0.06% Cu (5.09 g/t AuEq) over 2.7m; hole ACD24-229 with 0.93 g/t Au, 114 g/t Ag, 2.6% Zn, 1.4% Pb, and 0.23% Cu (4.76 g/t AuEq) over 3.8m, including 0.77 g/t Au, 214 g/t Ag, 5.2% Zn, 2.4% Pb, and 0.45% Cu (8.1% AuEq) over 1.8m, plus 1.49 g/t Au, 31 g/t Ag, 0.8% Zn, 0.2% Pb, and 0.02% Cu (2.49 g/t AuEq) over 14.5m, including 3.32 g/t Au, 46 g/t Ag, 0.9% Zn, 0.3% Pb, and 0.01% Cu (14.88 g/t AuEq) over 5m, including 13.8 g/t Au, 30 g/t Ag, 1% Zn, 0.4% Pb, and 0.01% Cu (5.54 g/t AuEq) over 0.8m; and hole ACD24-230 with 0.62 g/t Au, 300 g/t Ag, 1.1% Zn, 0.4% Pb, and 0.01% Cu (5.54 g/t AuEq) over 2.4m, including 0.76 g/t Au, 867 g/t Ag, 2.1% Zn, 0.6% Pb, and 0.01% Cu (14.13 g/t AuEq) over 0.8m, plus 0.53 g/t Au, 13 g/t Ag, 0.9% Zn, 0.3% Pb, and 0.04% Cu (1.32 g/t AuEq) over 49m, including 4.11 g/t Au, 49 g/t Ag, 1.1% Zn, 0.2% Pb, and 0.03% Cu (5.48 g/t AuEq) over 2.70m, including 11.05 g/t Au, 65 g/t Ag, 1.2% Zn, 0.3% Pb, and 0.03% Cu (12.73 g/t AuEq) over 0.8m, and including 1.65 g/t Au, 50 g/t Ag, 5.7% Zn, 0.9% Pb, and 0.26% Cu (6.11 g/t AuEq) over 2.6m. “These latest holes continue to support our goal of delineating and expanding the known higher-grade zones within the Guadalupe vein system to define a robust underground resource at Cristina. Not only are we seeing the expected higher-grade zones, but these are frequently set within broader intervals of lower grade material that may be amenable to bulk underground mining as is carried out successfully at Fresnillo’s nearby San Julian mine.”

ON DEALS AND CORPORATE ISSUES

  • Colibri Resource Corporation announces the listing of its common shares on the Frankfurt Stock Exchange (FSE) under the trading symbol “2CO1” (Pilar project, Sonora).
  • Discovery Silver Corp., notified the appointment of its Vice President, Investor Relations effective immediately (Cordero project, Chihuahua).
  • Sierra Metals Inc., filed its management information circular in connection with the company´s upcoming annual meeting of shareholders. The Meeting will be held on Tuesday, June 25, 2024 at 10:00 a.m. Eastern Time (Bolivar mine, Chihuahua).
  • Sonoran Desert Copper Corporation reported that it has been delayed in filing its audited annual financial statement for its financial year ended December 31, 2023, and the related Management’s Discussion and Analysis and Certifications by the Chief Executive Officer and Chief Financial Officer. The Issuer therefore applied to the British Columbia Securities Commission, the Alberta Securities Commission, and the Autorite des marches financiers (Quebec) pursuant to Part 4 of the National Policy 12-203 for a Management Cease Trade Order as an alternative to a general Cease Trade Order in connection with the Default of the Required Filings. (Cuatro Hermanos project, Sonora).
  • Bear Creek Mining Corporation reported voting results from its annual general meeting of shareholders and announced the appointment of officers (Mercedes mine, Sonora).
  • Chesapeake Gold Corp., reported that that it and Alderley Gold Corp., the Company’s wholly-owned subsidiary, have completed the acquisition of the patents, patent applications and certain other technology rights and assets for the sulphide leaching technology from Hycroft Mining Holding Corporation and its wholly-owned subsidiaries. On closing, Chesapeake paid $2M in cash and issued 1,026,518 common shares of the company at a deemed share price of $2.92 per share (Metates project, Durango).
  • Angel Wing Metals Inc., granted stock options to employees and consultants of the company. It granted 1,055,000 stock options at an exercise price of $0.15 (La Reyna, Nayarit).
  • Gatos Silver Inc., presented voting results from its annual general meeting of shareholders (Cerro Los Gatos mine, Chihuahua).
  • DynaResource Inc., announced the appointment of its President, CEO, Interim CFO and Director. It also announced that the former President and CEO resigned and will continue to assume the role of Chairman of the Board of Directors (San Jose de Gracia mine, Sinaloa).
  • Vizsla Silver Corp., announced that the independent proxy advisory firms ISS and Glass Lewis recommended that Vizsla Silver shareholders vote for the proposed arrangement with Vizsla Royalties Corp at the upcoming special meeting of shareholders. This spinout by way of a plan of arrangement is seen as a valuable opportunity for shareholders to create additional exposure to the Panuco district and potential new discoveries. The meeting is scheduled for June 17, 2024, in Vancouver, British Columbia.

ON SOCIAL RESPONSIBILITY

  • Gold Royalty Corp., published its 2023 Sustainability Report an Asset Handbook. Highlights include an announced inaugural sustainability-linked-co-investment of $300K provided to enhance the sustainability impact in one their mines; its portfolio had a carbon intensity of 0.25 T CO2E/GEO, representing one of the lowest carbon intensities in the royalty and streaming sector; its contribution to diverse communities causes, including arts, culture, scholarships, and mental health; and the 100% review of new royalty and streaming agreements and opportunities through their enhanced ESG due diligence process (Cozamine mine., Zacatecas).

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-goethite stockwork veining with malachite stains in an IOCG system in a project in Sonora, Mexico. Photo taken by Miguel A Heredia.

The Mining and Exploration News in Mexico: Highlights on the Fifth Week of May 2024

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By Jorge Cirett

During the 22nd week of the year (May 27th to June 2nd,2024), companies working in Mexico posted at least 29 press releases. One company informed of drilling on its property and six companies released financial results for Q1 2024. Two companies announced the opening/closing of financing rounds for C$10.28 M and one filed a prospectus to raise up to US$250 M. Two companies informed on drilling results from their advanced projects, one on the approval of key mining permits, another on an updated technical report and one more a clarification on a previous news release. Two companies reported on held AGM’s, another one on the date for a merger-voting AGM, one on plans for a copper spinout, one on an annual report and one more on a board member retirement. ON MEXICO ISSUES, presidential polls in Mexico are to define a centralized power government or a checks and balances political system. The mining industry will be strongly affected if the officialism candidate wins. Nearshoring and EV’s present an opportunity to copper producing Sonora. The New Mining Law has stalled the investment of more than US$4.5 billion in the country. ON EXPLORATION, In Sonora, Tocvan Ventures informed on drilling progress at Pilar. ON MINING, Impact Silver, Orogen Royalties, Bear Creek Mining, Minera Alamos, Santacruz Silver Mining and Luca Mining presented financial/operational results for Q1 2024. ON FINANCING, Impact Silver increased again its non-brokered private placement to C$10.2 M, Sailfish and Alamos Gold declared quarterly dividends. Inomin raised $80 K on the first tranche of financing. Mag Silver filed the base shelf prospectus to raise up to C$250 M in 25 months. ON RESOURCES AND DEVELOPMENT, Silver Storm and Prime Minig released drilling results from La Parrilla, in Durango, and Los Reyes, in Sinaloa, respectively. ON DEALS AND CORPORATE ISSUES, Argonaut Gold is to held a special meeting of shareholders to vote on the merger with Alamos Gold. First Majestic Silver released its 2023 annual report. Avino Silver and Guanajuato Silver released AGMS’s results. Minera Alamos informed on its purpose to create a copper developer/producer spinout in Central Sonora. Capstone Copper announced the retirement of Bob Gallagher. ON SOCIAL RESPONSIBILITY, First Majestic Silver and Fortuna Silver Mines published their 2023 ESG reports.

ON MEXICO ISSUES

  • This Sunday June 2nd presidential polls are to be held in Mexico, same that will define the bearing the country is to follow in the next six years and probably beyond that. At stake are the centralized government system with unrestricted power to the presidency sought by the current incumbent Andres Manuel Lopez Obrador, and the checks and balances system between the different government branches (executive, legislative and judicial) sought by the coalition opposition parties. Besides the obvious influence on the economy, if the officialism party´s Claudia Sheinbaum candidate wins, expect a tight grip on the mining industry from the open supporter of socialist economies, like Cuba and Venezuela.
  • Nearshoring and electrical vehicles present an opportunity for copper producing Sonora, according to David Ramos Félix, president of the local AIMMGM chapter in the State that produces more than 70% of the red metal in the country
  • Restrictions brought by the new Mining Law approved by Fast Track procedures in May of 2023 have delayed the investment of more than US$4.5 billion, according to Karen Flores, president of the Cámara Minera de México (CAMIMEX). The freezing of at least 220 environmental permits is hindering the investments that could generate employment to close to 50 thousand families, with salaries in the metallic mining sector that are 85% above the national average.

ON EXPLORATION

  • Tocvan Ventures Corp. informed 2,200 m have been completed on the reverse circulation (RC) drill program at its Pilar property in Sonora. Results for nine holes have been released so far.

ON MINING

  • Impact Silver Corp. announced financial and operating results for Q1 2024. The company reported revenue of $4.3 M from the Guadalupe mine in Estado de Mexico and $1 M from the start-up operations at Plomosas in Chihuahua. There was a net loss during the period of $3.1 M, primarily on upgrading facilities at the Plomosas mine. At the Zacualpan/Guadalupe mine in Estado de Mexico 31.7 K tonnes were milled @ 161 gpt AgEq. The Plomosas mine continued gradual start-up of operations, processing 3.6 K tonnes @ 15.3% Zn. The mine is expected to reach design capacity of 200 tpd later in 2024.
  • Orogen Royalties Inc. reported Q1 results, including $1.48 M in royalty revenue generated from First Majestic’s Ermitaño mine in Sonora, representing 508 Oz AuEq. “During the current quarter, the mill processed 224,394 tonnes of ore compared to 233,601 tonnes processed last quarter. Average silver and gold head grades during the current quarter were 72 grams per tonne (“g/t”) and 3.16 g/t, respectively, compared to average silver and gold head grades of 106 g/t and 3.88 g/t, respectively, of the previous quarter. Silver and gold recoveries averaged 69% and 95%, respectively, compared to recoveries of 73% and 96% from the previous quarter”.
  • Bear Creek Mining Corp. reported interim consolidated financial results for Q1 2024. During the period, 106.4 K tonnes were mined at the Mercedes mine in Sonora, averaging 3.83 gpt Au, 109.3 K tonnes milled averaging 3.69 gpt Au, recovering 94% Au to produce 12,228 Oz Au, 44 K Oz Ag at cash cost $1,183 per Oz Au and an AISC of $1,588 per Oz Au. Total revenue in the period was $27.5 K M. “Updates to estimates of mineral reserves and mineral resources are tentatively expected before year end, pending completion of the first phase of the exploration and infill drilling campaign”.
  • Minera Alamos Inc. provided select financial highlights from its Q1 2024 and an operational update for the first five months of the year. Updated plans call for 20 K Oz Au averaging 0.63 gpt Au and mined at a 1.6:1 ratio and staked over a 12-month period. Further stockpiled 4.5 K Oz Au @ 1.0 gpt Au are to be processed during the same period. Mining and stacking operations are expected to commence in June and continue through H2 2024 and H1 2025. Total gold recovered and sold during the first quarter was 907 Oz Au, with inventory on the leach pad of 5,383 Oz Au. Cash and cash equivalents at the end of the period was $11.8 M, with a positive working capital of $18.2 M.
  • Santacruz Silver Mining Ltd. reported its financial and operating results for the first quarter 2024, including figures from its operations in Mexico. At Zimapan, in Hidalgo, 205.4 K tonnes were processed @ 82 gpt Ag, 0.29% Cu, 0.83% Pb, 2.29% Zn, recovering 74% Ag, 43% Cu, 79% Pb, 77% Zn, to produce 399.9 K Oz Ag, 256 tonnes Cu, 1,352 tonnes Pb, 3,643 tonnes Zn. During the period the company had US$52.6 M in revenue, 463 K in gross profit, cash and cash equivalents of US$4 M and working capital of US$7.1 M.
  • Luca Mining Corp. announced financial results for Q1 2024. During the period the company produced 4,297 Oz Au, 207.5 K Oz Ag, 791 tonnes Cu, 661 tonnes Pb, 3,068 tonnes Zn. The company achieved its first positive operating earnings with C$4.8 M in operating income and C$7.3 M in net income. Cash flow was C$4 M, with an AISC of US$1,325 and US$1,690 per Oz AuEq, expected to decrease at Tahuehueto and Campo Morado respectively, as ramp up production continues with the completion of construction at the former and completion of the improvement project at the latter (Tahuehueto, Durango; Campo Morado, Guerrero).

ON FINANCING

  • Impact Silver Corp. is amending and increasing its previously announced non-brokered private placement from C$8.2 M to C$10.2 M (Plomosas, Chihuahua).
  • Sailfish Royalty Corp. declared the second quarterly dividend for 2024, in the amount of US$0.0125 per common share (Gavilanes, Durango).
  • Alamos Gold Inc. declared a quarterly dividend of US$0.025 per common share (Mulatos, Sonora).
  • Inomin Mines Inc. announced the closing of the first tranche of its non-brokered private placement for gross proceeds of $80K (La Gitana, Oaxaca).
  • Mag Silver Corp. obtained receipt for the final short form base shelf prospectus filed with the securities commissions in all Canada and filed a registration statement with the United States Securities and Exchange Commission (SEC). The final shelf prospectus and registration statement will allow the company to offer up to US$250 M in common shares during the 25-month period of validity (Juanicipio, Zacatecas).  

ON RESOURCES AND DEVELOPMENT

  • Silver Storm Mining Ltd. announced further results from 3,039 m in 23 holes of its diamond drill program at La Parrilla mine in Durango. The results are from the Rosario mine, underneath and in proximity to previously mined stopes. The Rosario zone is “characterized by a sulphide-bearing quartz-carbonate vein hosted within a fault zone that extend down dip for 900 m, with a strike length of 2 km and true widths of up to 14 m”. Highlighted core length results comprise 3.84 m @ 73 gpt Ag, 2.2% Pb, 5.4% Zn (including 1.19 m @ 0.15 gpt Au, 123 gpt Ag, 3.7% Pb, 11.3% Zn); 4.83 m @ 0.16 gpt Au, 113 gpt Ag, 0.2% Cu, 1.4% Pb, 0.7% Zn; 5.23 m @ 0.25 gpt Au, 70 gpt Ag, 1.6% Pb, 1.8% Zn; 2.50 m @ 0.64 gpt Au, 68 gpt Ag, 0.6% Pb; 4.54 m @ 176 gpt Ag, 0.2% Pb (including 1.97 m @ 0.09 gpt Au, 176 gpt Ag, 0.2% Pb); 0.35 m @ 842 gpt Ag, 0.94% Cu, 24.8% Pb, 10.1% Zn; 3.91 m @ 0.38 gpt Au, 501 gpt Ag, 1.2% Pb, 1.2% Zn; 3.52 m @ 0.11 gpt Au, 48 gpt Ag, 2.1% Pb, 2.4% Zn; 1.47 m @ 469 gpt Ag, 1.89% Cu, 5.0% Pb, 2.7% Zn; 5.9 m @ 225 gpt Ag, 0.9% Pb, 0.7% Zn; 3.20 m @ 0.47 gpt Au, 111 gpt Ag, 1.5% Pb, 2.0% Zn; 6.25 m @ 532 gpt Ag, 18.1% Pb, 5.4% Zn.
  • Prime Mining Corp. reported expansion drilling results from the Guadalupe East area at Los Reyes project, in Sinaloa. Highlighted true width intercepts comprise 3.5 m @ 2.67 gpt Au, 327 gpt Ag; 1.1 m @ 4.06 gpt Au, 664 gpt Ag; 0.3 m @ 6.88 gpt Au, 5 gpt Ag; 1.5 m @ 2.38 gpt Au, 419 gpt Ag; 1.0 m @ 3.71 gpt Au, 475 gpt Ag; 0.7 m @ 20.50 gpt Au, 2,620 gpt Ag; and core length intervals comprising 2.4 m @ 1.29 gpt Au, 180 gpt Ag (including 1.3 m @ 2.13 gpt Au, 302 gpt Ag). “The target of this drilling at Guadalupe East was high-grade antithetic veins stepping out to the west. Antithetic veins are footwall and hanging wall splays that intersect the main Estaca vein at Guadalupe East”.
  • Sierra Madre Gold and Silver Ltd. announced the approval by SEMARNAT (Environmental Agency) of the modifications to the existing operating permit for the Guitarra mine and mill complex in Estado de Mexico. The permit allows for dry stack tailings deposition at the active tailings facility site, construction of a tailings filter plant, paste backfill using tailings in the underground mine and 58 surface drilling pad locations.
  • Argonaut Gold Inc. filed an updated technical report for the San Agustin property in Durango, which commenced operations in 2017. Reports highlights include gold production of 89 K Oz Au from April 2024 to 2026 at cash cost US$1,702 per Oz Au and a pre-tax and after-tax net present value (5%) of US$30M.
  • Luca Mining Corp. issued a clarification on its May 21, 2024 news release regarding the high-grade gold mineralization over significant widths at the Tahuehueto mine in Durango. “The mineralization occurs in shoots branching off the main Creston vein at Underground Level 23. Creston is one is one of two main structures currently being mined. Regular geological mapping, as part of mining activities, and channel sampling at this level confirmed the presence of breccia ore shoots up to 20 meters wide”. Channel sampling of 494 channel samples on Level 23 average 3.30 gpt Au, 27 gpt Ag, 0.22% Cu, 0.8% Pb, 1.4% Zn,

ON DEALS AND CORPORATE ISSUES

  • Argonaut Gold Inc. has filed its management information circular for its annual general and special meeting of the holders of common shares to be held on June 28, 2024. At the meeting Argonaut Shareholders will be asked to vote on the statutory plan of arrangement under which Argonaut will become a wholly-owned subsidiary of Alamos Gold Inc. (La Colorada, Sonora).
  • First Majestic Silver Corp. released its 2023 Annual report titled “20 Years. The Silver Evolution”. The report covers the company’s “vision and mission, its values, its commitment to achieving its goals, and its 20-year evolution to becoming one of the world’s largest silver producers”.
  • Avino Silver & Gold Mines Ltd. reported voting results from its annual general meeting (AGM) held on May 30. 2024. The company also announced the retirement of Jasman Yee from the board of directors (Avino, Durango).
  • Guanajuato Silver Company Ltd. announced its 2024 annual general meeting (AGM) is to be held on June 28, 2024 (El Cubo, Guanajuato).
  • Minera Alamos Inc. informed its plans to advance the creation of a “separate copper developer/producer focused on low capital intensity copper development projects”. The company considers the combination of Los Verdes and Suaqui Verde projects allow for further consolidation of similar assets in the region.
  • Capstone Copper Corp. announced Mr. Robert Gallagher has retired from the board of the directors (Cozamin, Zacatecas).

ON SOCIAL RESPONSIBILITY

  • First Majestic Silver Corp. released its 2023 Sustainability Report summarizing the company’s environmental, social and governance (ESG). Highlighted in the report are the safety performance, diversity and inclusion, carbon reduction, community involvement, ESG recognition and community investments (San Dimas, Durango).
  • Fortuna Silver Mines Inc. published its sixth annual sustainability report detailing the company’s performance on key environmental, social and governance (ESG) indicators during 2023 (San Jose, Oaxaca).

On the image below: Potassic feldspar alteration on rim of dark veinlet on intrusive rock in HQ core (6.3 cm across) from a project in the Sonoran Desert. Picture by Jorge Cirett.

The Mining and Exploration News in Mexico: Highlights on the Fourth Week of May, 2024

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Quartz vein showing boiling texture

By Miguel A Heredia

During the 21st week of the year (May 20th to May 26th, 2024), at least 25 press releases were announced by companies working in Mexico, and 1 news published by the media, with twelve disclosing deals and corporate issues, six reporting resources and developments of their properties, three announcing financing rounds, two discussing social issues, two commenting on Mexican issues, and one informing on exploration results.  ON MEXICO ISSUES, AMLO denied that the government has expropriated a mine owned by the American firm Vulcan, in Quintana Roo, where the company extracts limestone, although he clarified that the company´s facilities remain closed. Silver Tiger, Tocvan/Colibri, Vizsla, and Kootenay Silver reported the best drilling intercepts in Mexico on the fourth week of May, 2024. ON EXPLORATION, In Sinaloa, Centenario Gold announced that it will host a webinar to provide investors with an update and the next phase exploration and drilling program on its Eden project.  ON MINING, no relevant news. ON FINANCING, Impact Silver closed its first tranche of the non-brokered private placement financing for gross proceeds of CAD $7.1M (Plomosas mine, Chihuahua). Centenario Gold announced a non-brokered private placement for gross proceeds of up to $1M (Eden project, Sinaloa). Guanajuato Silver announced the complete repayment of the USD $5M concentrate pre-payment facility (Cubo, San Ignacio, and Valenciana mines in Guanajuato and Topia mine, Durango).  ON RESOURCES AND DEVELOPMENT, Tocvan and its JV partner Colibri released results from its 2024 RC drilling program from its Pilar project in Sonora. Silver Tiger presented results from its ongoing PFS drilling program at its El Tigre project, Sonora. Luca Mining confirmed new high-grade gold zone with significant mining widths at its Tahuehueto mine, Durango. Vizsla released results from 16 new drillholes from its Panuco project, Sinaloa. Kootenay announced results from the first six holes targeting the eastern extension of the D-Vein target at its Columba project, Chihuahua.  ON DEALS AND CORPORATE ISSUES, Monumental Energy announced the termination of its option agreement on the Jemi REE project, Coahuila. Goldgroup reported contractor fatality at its Cerro Prieto mine in Sonora. Mag Silver announced the planned retirement of Peter Megaw after 20 years of dedicated services to Mag. Avino reminded his shareholders to vote their shares in the 2024 upcoming annual general meeting of shareholders (Avino mine, Durango). Sierra Metals entered into a binding agreement with Silverco to sell its Cusi property in Chihuahua.  Vizsla Silver filed the management information circular in connection with special meeting to approve spinout of Vizsla Royalties. Alamos Gold reported results from its annual general and special meeting of shareholders (Mulatos mine, Sonora). First Majestic announced ticker symbol change on the Toronto Stock Exchange (TSX), and announced voting results of its annual general meeting of shareholders. Sierra Madre Gold and Silver announced the appointment of the General Manager of its La Guitarra Mine and Mill Complex in Mexico State, as well as announced the issuance of stock options to La Guitarra employees, advisors and consultants of the company. Chesapeake announced agreement to acquire intellectual property rights to a leaching technology which are currently held under license from Hycroft by Alderley (Metates, Durango).  Mexus provided an update to shareholders for its Santa Elena mine (Caborca), Sonora. ON SOCIAL RESPONSIBILITY, GoGold presented its 2023 sustainability report (Parral Tailings project, Chihuahua). Torex released its 2023 responsible gold mining report (El Limon-Guajes mine complex, Guerrero).

ON MEXICO ISSUE

  • AMLO denied that the government has expropriated a mine owned by the American firm Vulcan, in Quintana Roo, where the company extracts limestone, although he clarified that the company´s facilities remain closed. Secretary of State Anthony Blinken stated before a Senate committee that the action of the Mexican authorities is not a good way to attract investment. Mexican authorities ordered a halt to limestone extraction in the coastal state of Quintana Roo in 2022, alleging environmental damage by the company, which described the measure as “unexpected” and “arbitrary”. Since the, Vulcan Minerals has been unable to export its production and is demanding more than USD $1,500M in compensation through the International Center for Settlement of Investment Disputes (ICSID). Tensions increased in 2023, when the company announced that Mexican security forces took possession of its port terminal in southern Mexico. Last year, AMLO announced that he was offering USD $391M to buy the land where Vulcan Materials operates and resolve the dispute. “The site is closed and they will not be able to work”, he said Wednesday.
  • Silver Tiger Metals Inc., Tocvan Ventures Corp/Colibri Resources Corporation, Vizsla Silver Corp., and Kootenay Silver Inc., reported the best drilling intercepts in Mexico on the fourth week of May, 2024. Details are shown in the table below:

ON EXPLORATION

  • Centenario Gold Corp., announced that it will host a webinar at 10:00 am PDT on Thursday May 30th, 2024, to provide investors with an update and the next phase exploration and drilling program on its Eden project in Sinaloa. 

ON MINING

  • No relevant news.

ON FINANCING

  • Impact Silver Corp., closed its first tranche of the non-brokered private placement financing for gross proceeds of CAD $7.1M from the issuance of 15,526,190 units at a price of CAD $0.27 per standard unit. Net proceeds will be used to accelerate exploration activity at its Plomosas high-grade zinc-lead-silver property located in Chihuahua, Mexico, as well as to develop its prolific silver assets at its legacy Royal Mines of Zacualpan district, in Mexico State.
  • Centenario Gold Corp., announced a non-brokered private placement for gross proceeds of up to $1M through the issuance of up to 20M units at a price of $0.05 per unit (Eden project, Sinaloa).
  • Guanajuato Silver Company Ltd., announced the complete repayment of the USD $5M concentrate pre-payment facility owed to Ocean Partners UK Limited, , a metal off-take and trading firm (Cubo, San Ignacio, and Valenciana mines in Guanajuato and Topia mine, Durango).

ON RESOURCES AND DEVELOPMENT

  • Tocvan Ventures Corp., and its JV partner Colibri Resource Corporation released results from its 2024 RC drilling program from its Pilar project in Sonora. The best drill intercepts were encountered in hole JES-24-79 with 0.82 g/t Au and 0.5 g/t Ag over 50.32m, including 0.96 g/t Au and 0.6 g/t Ag over 42.7m, including 10.9 g/t Au and 2 g/t Ag over 3.05m, including 21.4 g/t Au and 3 g/t Ag over 1.52m. “Like the Main Zone, the North Hill trend is exposed at surface along a rounded ridge top, allowing the potential for a low strip ratio during early development. The hole tested near-surface mineralization and was stopped at 125.1m, mineralization at North Hill remains open along trend and to the east. 
  • Silver Tiger Metals Inc., presented results from its ongoing PFS drilling program at its El Tigre project, Sonora. Hole ET-24-568 collared at the Keel Zone intercepted 6.21 g/t Au and 410 g/t Ag (11.67 g/t AuEq or 876 g/t AgEq) over 16m, including 90.9 g/t Au and 6,034 g/t Ag (171.35 g/t Au or 12,852 g/t Ag( over 1m. The hole passed through the El Tigre vein located some 15m beneath the floor of the PEA Open Pit and is referred to as the Keel Zone.  Other new intersections through the Stockwork deposit include holes ET-24-570 with 1.63 g/t Au and 22 g/t Ag (1.92 g/t AuEq or 144 g/t AgEq) over 59.3m; hole ET-23-563 with 0.7 g/t Au and 35 g/t Ag (1.17 g/t AuEq or 88 g/t AgEq) over 45m, including 1.01 g/t Au and 89 g/t Ag (2.2 g/t AuEq or 165 g/t AgEq) over 15m, including 1.43 g/t Au and 634 g/t Ag (9.89 g/t AuEq or 742 g/t AgEq) over 2m, plus 0.68 g/t Au and 2 g/t Ag (0.71 g/t AuEq or 53 g/t AgEq) over 6m; and hole ET-23-552 with 0.83 g/t Au and 6 g/t Ag (0.92 g/t AuEq or 69 g/t AgEq9 over 35.5m, including 2.1m mining void, plus 1.66 g/t Au and 2 g/t Ag (1.68 g/t AuEq or 126 g/t AgEq) over 7m, plus 0.44 g/t Au and 0.5 g/t Ag (0.45 g/t AgEq or 33 g/t AgEq9 over 19.5m. “The results may increase the updated MRE associated with the PFS-level study which we expect to deliver by September 2024, which will also further de-risk the project.”  Mr. Jessome (Silver Tiger CEO) continued, “We contemplate being able to make a build decision based on our upcoming PFS.”
  • Luca Mining Corp., confirmed new high-grade gold zone with significant mining widths at its Tahuehueto mine, Durango. New geological mapping and sampling at the Main Creston Vein at underground Level 23 confirmed the presence of breccia ore shoots up to 20m wide with some internally assayed channel samples returning greater than 20 g/t Au. These wide and higher-grade Au mineralization zones at depth confirm the enormous upside potential of the mine.
  • Vizsla Silver Corp., released results from 16 new drillholes from its Panuco project, Sinaloa. Drilling highlights (true widths reported) include holes NP-24-431 (Napoleon and HW 4 Structures) with 362 g/t Ag, 0.44 g/t Au, 0.3% Pb, and 0.8% Zn (405 g/t AgEq) over 0.73m, plus 1,551 g/t Ag, 14.08 g/t Au, 1% Pb, and 3.8% Zn (2,561 g/t AgEq) over 2.40m, including 2,460 g/t Ag, 23.2 g/t Au, 1.6% Pb, and 6.1% Zn (4,121 g/t AgEq) over 1.24m, plus 62 g/t Ag, 1.18 g/t Au, 0.1% Pb, and 0.7% Zn (165 g/t AgEq) over 0.75m, plus 132 g/t Ag, 1.1 g/t Au, 0.3% Pb, and 0.9% Zn (236 g/t AgEq) over 0.70m; hole NAP-23-004 (Napoleon Structure) with 939 g/t Ag, 6.26 g/t Au, 0.5% Pb, and 1.9% Zn (1,503 g/t AgEq) over 0.40m, plus 328 g/t Ag, 4.32 g/t Au, 0.8% Pb, and 2.1% Zn (696 g/t AgEq) over 6.5m, including 505 g/t Ag, 6.33 g/t Au, 2.9% Pb, and 0.1% Zn (1,038 g/t AgEq) over 3.65m; hole NP-24-429 (Molino, Napoleon and HW Structures) with 105 g/t Au, 0.46 g/t Au, 0.1% Pb, and 0.3% Zn (145 g/t AgEq) over 1.55m, plus 2,390 g/t Ag, 28.1 g/t Au, 2.2% Pb, and 9.6% Zn (4,533 g/t AgEq) over 1.30m, plus 144 g/t Ag, 1.06 g/t Au, 0.1% Pb, and 0.2% Zn (217 g/t AgEq) over 0.75m, plus 2,508 g/t Ag, 26.04 g/t Au, 1.8% Pb, and 6.8% Zn (4,525 g/t AgEq) over 0.8m, including 2,380 g/t Ag, 35.1 g/t Au, 2% Pb, and 8.8% Zn (4,959 g/t AgEq) over 0.42m; and hole NP-24-435 (HW and Napoleon Structures) with 1,429 g/t Ag, 11.76 g/t Au, 0.3% Pb, and 0.7% Zn (2,156 g/t AgEq) over 1.4m, plus 53 g/t Ag, 0.13 g/t Au, 0.3% Pb, and 7.3% Zn (330 g/t AgEq9 over 0.40m. “New drilling along the central and southern portions of the Napoleon resource area has successfully expanded known zones of high-grade mineralization, proximal to potential development. Additionally, expansion drilling targeting the Hanging Wall 4 structure and the recently discovered El Molino Vein, returned significant gold and silver values outboard of the current resource boundary. We are very pleased with how Luisa, Napoleon and Copala are responding to tighter spaced drilling. This supports increased potential for resource conversion as we de-risk the project ahead of the preliminary economic assessment planned for early Q3.”
  • Kootenay Silver Inc., announced results from the first six holes targeting the eastern extension of the D-Vein target at its Columba project, Chihuahua. Drilling highlights (true widths reported) include holes CDH-24-153 with 183 g/t Ag, 0.01% Pb, and 0.2% Zn over 12.95m, including 481 g/t Ag, 0.02% Pb, and 0.7% Zn over 3.52m, including 920 g/t Ag, 0.8% Pb, and 3.3% Zn over 0.43m; and hole CDH-24-152 with 83 g/t Ag, 0.05% Pb, and 0.2% Zn over 18m, including 240 g/t Ag, 0.1% Pb, and 0.4% Zn over 5.40m, including 347 g/t Ag, 0.2% Pb, and 0.6% Zn over 3.36m, including 492 g/t Ag, 0.4% Pb, and 1% Zn over 1.59m, including 539 g/t Ag, 0.3% Pb, and 1.6% Zn over 0.60m. “The company has completed over 30,000m of diamond drilling in 153 holes at Columba since 2019 and intercepted numerous veins with high silver grades and widths indicating excellent resource potential. Prospective veins on the project are hosted within a volcanic caldera setting; the surface extent of mapped veins measuring roughly 4km by 3km. Management believes that Columba may be a newly recognized vein district that is nearly entirely preserved from erosion.

ON DEALS AND CORPORATE ISSUES

  • Monumental Energy Corp., announced the termination of its option agreement on the Jemi REE project, Coahuila. Following its assessment of exploration results, the company has elected to discontinue its activities under the Jemi Option Agreement in which they had the right to acquire a 100% interest in six mineral concessions comprising approximately 3,560 hectares located in the Ocampo municipality of Coahuila State.
  • Goldgroup Mining Inc., reported contractor fatality at its Cerro Prieto mine in Sonora. The contractor’s employee was fatally injured while working in the Esperanza pit when recently blasted rock dislodged striking the worker during inspection of the blasted area.
  • Mag Silver Corp., announced the planned retirement of Peter Megaw, Co-Founder and Chief Exploration Officer, after 20 years of dedicated services to Mag. Peter will continue as a consultant to the Company following his retirement from executive duties at Mag. “My admiration and deep respect to Peter for his brilliant work in the mining exploration in Mexico”.
  • Avino Silver & Gold Mines Ltd., reminded his shareholders to vote their shares in the upcoming 2024 annual general meeting of shareholders, to be held on Thursday, May 30, 2024, at 10:00 AM PT (Avino mine, Durango).
  • Sierra Metals Inc., entered into a binding agreement with Silverco Mining Corp., to sell its Cusi property in Chihuahua, and related assets including, among other things, land and land agreements, equipment and environmental permits. Terms of the agreement include a cash payment of USD $2.5M at closing, and a 2.0% net smelter royalty in respect of the Cusi Mine granted in favour of Sierra Metals. Silverco will have the right to purchase half of the royalty (being 1.0%) at any time in exchange for a cash payment to Sierra Metals of USD $5M.
  • Vizsla Silver Corp., filed the management information circular in connection with special meeting to be held on June 17, 2024 at 10:00 AM (PST), to approve spinout of Vizsla Royalties Corp. “The purpose of the meeting is to seek approval of the previously announced spinout by way of a plan of arrangement between Vizsla Silver and Vizsla Royalties Corp. (Spinco), whereby the owners of common shares of Vizsla Silver are entitled to receive one-third of a common share of Spinco and one-third of a common share purchase warrant of Spinco for each Vizsla Silver share held immediately prior to the closing of the Arrangement. Each full Spinco warrant will entitle the holder thereof to purchase one Spinco share at an exercise price of $0.05 per share for a period expiring on the earlier of: (i) 120 days after the date the Spinco shares and Spinco warrants are listed on the TSX Venture Exchange; and (ii) December 31, 2025”.
  • Alamos Gold Inc., reported results from its annual general and special meeting of shareholders virtually held on Thursday, May 23, 2024 (Mulatos mine, Sonora).
  • First Majestic Silver Corp., announced ticker symbol change on the Toronto Stock Exchange (TSX), effective as of market opens Monday, May 27, 2024. First Majestic symbol will change from “FR” to “AG”. As a result of this change, “AG” will now be the ticker symbol for First Majestic’s common shares listed in Canada on the TSX, and in the United States on the New York Stock Exchange (NYSE), allowing for enhanced, harmonized brand alignment within the Canadian and United States capital markets. The company’s ticker symbol on the Frankfurt Stock Exchange remains “FMV”. The company also announced voting results of its annual general meeting of shareholders held on Thursday, May 23, 2024 in Vancouver, BC, Canada.
  • Sierra Madre Gold and Silver Ltd., announced the appointment of the General Manager of its La Guitarra Mine and Mill Complex in Mexico State, as well as announced the issuance of stock options to La Guitarra employees, advisors and consultants of the company.
  • Chesapeake Gold Corp., announced agreement to acquire intellectual property rights to a leaching technology which are currently held under license from Hycroft Mining Holding Corporation by Alderley Gold Corp. Pursuant to the purchase agreement, Chesapeake has agreed to pay CAD $2M in cash and to issue 1,026,518 common shares of the company for the Intellectual Property Rights. The common shares will be subject to a hold period of four months and one day (Metates, Durango).  
  • Mexus Gold US provided an update to shareholders for its Santa Elena mine (Caborca), Sonora. The company continues to negotiate for a favorable deal with multiple companies vying for the right to team with Mexus. There are currently two companies doing due diligence on 2 of the 3 properties Mexus has rights to in Sonora State, Mexico.

ON SOCIAL RESPONSIBILITY

  • GoGold Resources Inc., presented its 2023 sustainability report, which sets out the company’s performance and achievements with respect to its environmental, social and governance (ESG) practices. Highlights of the reports include energy consumption decrease of 44% compared to prior year, including a 25% decrease at Parral; decreased carbon dioxide emissions by 38% compared to the previous year; 0.006 tCO2e per oz of silver equivalent produced at Parral; 0.006 tCO2e per tonne of ore processed; increase of over 8% in safety and professional development training to over 12,000 hours; awarded the ESR distinction (Empresa Socialmente Responsables – Corporate Social Responsibility); USD $17.2M spent in local purchases, including USD $422K in community investment; donation of 600 machine hours to nearby towns in order to help with local infrastructure; and social impacts in nearby communities include providing food packages to elderly, educational and sports supplies to local children and medical attention to residents.
  • Torex Gold Resources inc., released its 2023 responsible gold mining report, titled At the Heart of Who we Are, the Company’s ninth annual disclosure of its Environmental, Social and Governance (ESG) performance (El Limon-Guajes mine complex, Guerrero). Highlights include “industry-leading safety performance, ending 2023 with a lost-time injury frequency of 0.31 per million hours worked for our employees and contractors; the company also achieved 10 million hours worked without a lost-time injury at El Limón Guajes (ELG) for the third time since 2020;  zero reportable environmental incidents or spills; continued implementation of our Community Development Agreements (CODECOPs) in partnership with 11 host communities, with $3.1M directly invested in community development and infrastructure projects;  released an Economic Impact Study demonstrating direct, indirect, and induced benefits in Mexico at the state and national levels, including a 3% annual contribution to Guerrero State’s annual gross domestic product;  66% water usage recycled; 63% non-mineral waste recycled;  108.5 hectares reforested, with 70,560 native trees planted from two on-site greenhouses;  99% employees from Mexico with ~69% from Guerrero State; 9% overall turnover rate in 2023 down from 14% in 2022;  90% of procurement spend in Mexico; $158M spent on procurement within Guerrero State, almost a 50% increase relative to 2022; continued progress on implementation of the requirements of the World Gold Council’s Responsible Gold Mining Principles, International Cyanide Management Code, and the Global Industry Standard on Tailings Management; continued improvement in scoring from key ESG ratings agencies including MSCI, Sustainalytics, and CDP”.

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, boiling texture in an epithermal vein system in a project in Sonora, Mexico. Photo taken by Miguel A Heredia.