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The Mining and Exploration News in Mexico: Highlights on the Second Week of February, 2024

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Silica sinter

By Miguel A Heredia

During the 6th week of the year (February 5th to February 11th, 2024), at least 25 press releases were announced by companies working in Mexico, and 3 news published by the media with eight reporting resources and developments of their projects, six announcing financing issues, five disclosing deals and corporate issues, four commenting on Mexican issues, two communicating production results, two informing on exploration results, and one discussing social issues.  ON MEXICO ISSUES, Analysts announced that Q4, 2023 reports will be disparate on the Stock Market.  President Andrés Manuel López Obrador (AMLO) has presented 20 proposals for constitutional reforms in Mexico. AMLO presented initiative to prohibit open pit mining. Orla Mining, First Majestic, Prismo Metals, and Prime Mining reported the best drilling intercepts in Mexico on the second week of February, 2024. ON EXPLORATION, In Sinaloa, Prismo provided an exploration update on its Palos Verdes project.  In Durango, Silver Dollar acquired from Canasil a 100% interest in the Nora project, and provided a project update. ON MINING, Argonaut announced that it will report Q4 and year-end 2023 production and financial results of their Mexican operations on March 6, 2024. GoGold released Q1, 2024 production and financial results from its Parral Tailings project, Chihuahua. ON FINANCING, Capstone and Orion closed its previously announced CADS $431M bought deal offering (Cozamine mine, Zacatecas). Defiance announced a non-brokered private placement for gross proceeds of up to CAD $3M (San Acacio project, Zacatecas). Kootenay increased the size of its previously announced non-brokered private placement to $3.5M (Columba project, Chihuahua). Sonoro announced a non-brokered private placement for gross proceeds of up to CAD $1M (Cerro Caliche project, Sonora).  Regency Silver extended the closing its private placement (Dios Padre project, Sonora).  Zacatecas Silver upsized and closed its previously announced private placement from $1.8M to $2.5M (Zacatecas Silver project, Zacatecas). ON RESOURCES AND DEVELOPMENT, Luca Miningprovided an update progress at its Tahuehueto property in Durango. Avino presented the results of the Pre Feasibility (PFS) for its Oxide Tailings project at its Avino mine operation in Durango. Sierra Madre provided an update on La Guitarra mine in the State of Mexico. Heliostar announced that it is evaluating test mining scenarios for its Ana Paula project, Guerrero in 2024. Orla concluded its 2023 Camino Rojo Sulphides Infill program in Zacatecas with strong results.  Prime Mining released results from the 2023 drilling program at the Z-T Area within its Los Reyes project, Sinaloa. First Majestic reported positive exploration results from their San Dimas property in Durango, and Santa Elena property in Sonora. Torex provided a Q4, 2023 update on its Media Luna project in Guerrero.   ON DEALS AND CORPORATE ISSUES, Capstone announced that it has commenced trading on the Australian Securities Exchange (Cozamin mine, Zacatecas). Colibri appointed Douglas Coleman to its Advisory Board (Evelyn project, Sonora).  Fabled Silver terminated its letter of intent with Kootenay with respect to the proposed acquisition the Mecatona Property, Chihuahua. Luca Mining appointed a new member to its Board of Directors (Tahuehueto project, Durango). Defiance clarified technical disclosures pertaining to its technical reports related to their Tepal project, Michoacan and San Acacio project, Zacatecas. ON SOCIAL RESPONSIBILITY, Fortuna Silver announced its objectives, metrics, and targets to reduce Scope 1 and Scope 2 greenhouse gas (GHG) emissions (San Jose mine, Oaxaca).

ON MEXICO ISSUE

  • Analysts predict that the fourth quarter of 2023 will be a mixed bag for Mexican mining companies due to pressures on costs and falling prices of industrial metals. While some companies may benefit from increasing prices of precious metals like gold and silver, others will also face higher costs. Grupo Mexico has already reported weak financial results due to decreased sales of copper, while the other companies are expected to face similar challenges in 2024 due to China’s economic slowdown. Only Minera Frisco has generated a positive return so far this year among the four mining companies. Autlán is expected to make some sequential improvements due to cost-cutting efforts, but the industry as a whole is predicted to face challenges in the coming year. All of last year, only the companies that are part of the S&P/BMV stock index IPC Grupo México (+37.66%) and Peñoles (+3.58%) had gains on the Stock Market. While the share of Fresnillo, a subsidiary of Peñoles listed on the London Stock Exchange, lost 34.08%, that of Autlán lost 26.43% and that of Frisco lost 9.01%.
  • President Andrés Manuel López Obrador (AMLO) has presented 20 proposals for constitutional reforms in Mexico. One of the proposals is to return the Comisión Federal de Electricidad (CFE) to its status as a public, strategic, and nationally important company.  AMLO also proposes to prohibit the extraction of hydrocarbons through hydraulic fracturing (fracking) and to not grant concessions to private companies for open-pit mining activities. However, in the economic budget planned for 2024, the government has contemplated two projects with fracking for MXP $4.63M, according to data from the organization Mexican Alliance against Fracking (AMCF). Currently, of the almost 250 mines that operate in the country, 97 are open pit metal mines and 152 more are underground mines; However, until March 2022, 15,551 mining concessions were registered in the country with validity after 2050. It should be noted that since the arrival of AMLO to the presidency, not a single mining concession has been granted, which has led the sector to have a drop in investment that decreased its participation in the national GDP, from 2.50 in 2021 to 2.46 percent in 2022, while in industrial GDP from 8.78% to 8.63%. The proposed reforms also aim to eliminate “costly and elitist” dependencies and organizations that were supposedly autonomous but disconnected from the interests of the people. Some of the autonomous bodies that could be affected by these proposals include the Comisión Reguladora de Energía (CRE), Comisión Nacional de Hidrocarburos (CNH), and Comisión Federal de Competencia Económica (COFECE). AMLO will submit these initiatives to the Chamber of Deputies for discussion in the current or next legislative session.
  • President Andrés Manuel López (AMLO) presented initiative to prohibit open pit mining. On February 5, on the anniversary of the Political Constitution of the United Mexican States, AMLO presented an Initiative with a Draft Decree to carry out various reforms, one of these being the prohibition of open pit mining. According to the initiative, addressed to Dip. Marcela Guerra Castillo, President of the Chamber of Deputies, in order to protect the environment and health, we seek to modify art. 27 constitutional to “prohibit both the granting of concessions and the activities of exploration, exploitation, benefit, use or exploitation of minerals, metals or metalloids in the open pit, with the addition that the people who carry out these activities will be sanctioned.” The AMLO project indicates that there are currently around 264 open pit mines in Mexico, and much emphasis is placed on the old vision of predatory mining, leaving aside that for a mine to operate in our country it must have more than a thousand rules and regulations, in addition to having comprehensive closure plans.
  • Orla Mining Ltd., First Majestic Silver Corp., Prismo Metals Inc., and Prime Mining Corp., reported the best drilling intercepts in Mexico on the second week of February, 2024. Details are shown in the table below:

ON EXPLORATION

  • Prismo Metals Inc., provided an exploration update on its Palos Verdes project in Sinaloa.  Following the completion of its third drill campaign with 2,923 meters drilled in 15 holes, and in preparation of the upcoming expanded drill program to be drilled from Vizsla Silver Corp, Prismo completed an alteration and geochemical study that confirmed a downward offset of the mineralized ore shoot defined by drilling to date and that a second blind mineralized shoot may exist to the northeastern portion of the Palos Verdes vein, based on a geochemical sampling which revealed high-grade silver, gold, zinc, and lead values in the vein system.  The best sample from this program assayed 930 g/t silver and 10.55 g/t gold with 15.4% zinc and 4.5% lead (2,605 g/t Ag/Eq) over 0.5m. The company plans to conduct deep drilling from Vizsla Silver’s ground to explore these concepts further.
  • Silver Dollar Resources Inc., acquired from Canasil a 100% interest in the Nora project in Durango, and provided a project update. In connection with the acquisition of the Nora property, Silver Dollar encountered certain unresolved discrepancies in verifying the 2020 and 2021 drill results Canasil reported on the Nora property. For gold: of the 157 samples duplicated, Canasil reported 42 samples >1 g/t Au (1.23 – 43.7 g/t) including 18 samples >5 g/t (5.3 – 43.7 g/t), whereas Silver Dollar’s re-assaying yielded only three samples >1 g/t Au (1.04, 1.75, and 2.30 g/t). For silver: of the 157 samples duplicated, Canasil reported 44 samples >200 g/t Ag (133 -1,924 g/t) including 19 samples >500 g/t Ag (504 – 1,925 g/t), whereas Silver Dollar’s re-assaying yielded only three samples >100 g/t Ag (129, 158, and 448 g/t). “The QPs from both companies discussed the situation and recommended a further analytical program be carried out to provide some insight into what may have caused the assay discrepancies. However, Canasil did not have the financial resources to contribute to the recommended program and alternatively offered to waive certain of Silver Dollar’s consideration obligations under the Nora Option Agreement and transfer 100% ownership of the Nora property to Silver Dollar for the consideration that has been provided to date (as detailed below), subject to a 2% net smelter returns royalty with Silver Dollar having the right to buy back 1% of the Royalty for $1M. As of the date hereof, Silver Dollar has incurred a total of approximately $134,779 in exploration expenditures on the Nora property, as full consideration for the acquisition thereof. Silver Dollar is not required to provide any further consideration to Canasil to complete the acquisition and the transfer of the Nora concessions to Silver Dollar has been initiated”.

ON MINING

  • Argonaut Gold Inc., announced that it will report Q4 and year-end 2023 production and financial results of their Mexican operations on March 6, 2024.
  • GoGold Resources Inc., released Q1, 2024 production and financial results from its Parral Tailings project, Chihuahua. The company produced 109K Oz Ag, 1,848 Oz Au, and 212.8K Lb Cu (300,260 Oz AgEq). It also reported a revenue of USD $6.8M on the sale of 305,087 Oz AgEq, at a realized price of USD $22.28 per Oz Ag, and an adjusted cash cost and all in sustaining cost of USD $16.83 and USD $24.64 per Oz AgEq respectively ; a net income of USD $192K; and a cash of USD $88.8M.

ON FINANCING

  • Capstone Copper Corp., and Orion Fund JV Limited, Orion Mine Finance Fund II LP and Orion Mine Finance (Master) Fund I-A LP (collectively, Orion) closed its previously announced bought deal offering of common shares of Capstone by a syndicate of underwriters, which consisted of a total of 68,448,000 common shares at a price of CAD $6.30 per common share, which included the exercise in full of the Underwriters’ over-allotment option of 8,928,000 common shares from the company, for aggregate gross proceeds under the offering of CAD $431,222,400 (Cozamine mine, Zacatecas).
  • Defiance Silver Corp., announced a non-brokered private placement for gross proceeds of up to CAD $3M. The offering is priced at $0.10/unit. Each unit shall consist of one common share of the company and one half of one common share purchase warrant. Net proceeds will be used for exploration of the company’s projects and for general working capital purposes (San Acacio project, Zacatecas).
  • Kootenay Silver Inc., increased the size of its previously announced non-brokered private placement to $3.5M, at a price of $0.75 per unit. The net proceeds from the offering will be used for exploration activities, property commitments on the company’s projects, working capital and general corporate purposes (Columba project, Chihuahua).
  • Sonoro Gold Corp., announced a non-brokered private placement offering consisting of up to 22,222,222 units at a price of CAD $0.45 per unit for gross proceeds of up to CAD $1M. Net proceeds will be used to fund the ongoing development of the company’s Cerro Caliche gold project in Sonora, Mexico as well as working capital.
  • Regency Silver Corp., extended the closing its previously announced private placement dated January 17, 2024 (Dios Padre project, Sonora).
  • Zacatecas Silver Corp., upsized and closed its previously announced private placement from $1.8M to $2.5M. The Company will now proceed to immediately close the financing, by way of receiving subscription agreements and funds and intends to close within the next week. The Company intends to use the net proceeds to satisfy ongoing costs associated with its properties as well as general working capital purposes (Zacatecas Silver project, Zacatecas). 

ON RESOURCES AND DEVELOPMENT

  • Luca Mining Corp., provided an update progress at its Tahuehueto property in Durango. The project to increase throughput at the Tahuehueto mill to 1,000 tonnes per day is in the final commissioning stage. The testing of the second ball mill is well advanced and will provide a total installed grinding capacity of 1,250 tonnes per day. Once the second mill is commissioned, production will ramp up and progressively increase to 35,000-40,000 oz AuEq per year.
  • Avino Silver & Gold Mines Ltd., presented the results of the Pre Feasibility (PFS) for its Oxide Tailings project at its Avino mine operation in Durango. Highlights include a NVP of USD $98M (pre-tax) and USD $61M (after-tax) at a 5% discount rate; an IRR of 35% (pre-tax) and 26% (after-tax); a payback period of 2.9 years (pre-tax) and  3.5 years (after-tax); an initial capital cost of USD $49.1M, including a contingency provision in the amount of USD $5.3M; the ongoing sustaining capital cost is USD $5.1M; On-site Operating Costs (OOC) and All-In Sustaining Cost (AISC) of USD $9.71 and USD $10.23 per Oz AgEq respectively; proven and probable mineral reserves of 6.70M tonnes at a silver and gold grade of 55 g/t and 0.47 g/t respectively; metal recoveries: 77.2% Ag and 74.9% Au; Doré production: Total 9,073,000 Oz Ag and 76,000 Oz Au, life-of-project (averaging 1,008,000 Oz Ag and 8,445 Oz Au per year); and the project will generate USD $52.4M in tax contributions to the local economy and government.
  • Sierra Madre Gold and Silver Ltd., provided an update on La Guitarra mine in the State of Mexico. The company has retained TechSer Mining Consultants Ltd., to complete the Mine Restart Study (MRS), which include an estimation of underground mine material for the Guitarra, Coloso and Nazareno mines and the Los Angeles bulk tonnage deposit. The   MRS is expected to be completed in Q2 of this year. On the other hand, work has been ongoing to determine necessary steps for the potential re-start of production. In accordance with recommendations made by officials with the Secretaria de la Defensa Nacional, SEDENA, improvements to the underground powder magazines have been completed. Finally, all circuits in the processing plant are undergoing maintenance and rehabilitation work which would be required for the resumption of operations. In the grinding circuit, the three ball mills are being relined, all parts of the central drive shaft mechanisms overhauled, and the motors cleaned and tested. A fourth ball mill with limited capacity will not be rebuilt at this time.
  • Heliostar Metals Ltd., announced that it is evaluating test mining scenarios for its Ana Paula project, Guerrero in 2024. The company is exploring the potential to complete the existing underground decline at the Ana Paula deposit in Guerrero, to enable test mining of a bulk gold sample. This would help de-risk the underground plan for Ana Paula while creating a potential pathway to production from test mining in 12 months. The company has initiated a Preliminary Economic Assessment (PEA) for completion in H2, 2024, and will continue resource growth drilling. Heliostar is assessing non-equity funding options for this program and has held discussions with potential offtake partners. Multiple scenarios indicate the potential to recover more than 20K Oz Au from a bulk sample from stocks averaging 7-10 g/t Au.
  • Orla Mining Ltd., concluded its 2023 Camino Rojo Sulphides Infill program in Zacatecas with strong results. Drilling highlights of the remaining unreported 14 holes completed as part of the 52 drill holes, 35,070 m infill program are shown in the table below:

“A preliminary underground resource estimate on the Camino Rojo Sulphides is eagerly anticipated to be completed in the second half of 2024. Metallurgy evaluation on the recent phase of Camino Rojo sulphide infill drilling is expected to continue throughout 2024”.

  • Prime Mining Corp., released results from the 2023 drilling program at the Z-T Area within its Los Reyes project, Sinaloa. Highlights of the drilling are shown in the table below:

“Ongoing drilling at Z-T aims to extend the high-grade shoots that remain open at depth, as well as following up on the newly discovered mineralization along strike”.

  • First Majestic Silver Corp., reported positive exploration results from their San Dimas property in Durango, and Santa Elena property in Sonora. At San Dimas, Durango, exploration drilling intersected significant gold and silver mineralization in multiple veins at Sinaloa North-Elia, Santa Teresa, Rosario and Perez Areas. Drilling highlights (true widths reported) include holes ST23-014 with 7.03 g/t Au and 903 g/t Ag (1,466 g/t AgEq) over 0.78m, plus 3.95 g/t Au and 270 g/t Ag (586 g/t AgEq) over 1.86m, plus 2.07 g/t Au and 130 g/t Ag (296 g/t AgEq) over 2.90m, plus 40.40 g/t Au and 2,092 g/t Ag (5,324 g/t AgEq) over 0.91m; hole SIN23-073 with 13.50 g/t Au and 1,007 g/t Ag (2,087 g/t AgEq) over 0.7m, plus 11.83 g/t Au and 758 g/t Ag (1,681 g/t AgEq) over 2.97m: hole PE23-225 with 1.6 g/t Au and 243 g/t Ag (371 g/t AgEq) over 0.77m, plus 14.18 g/t Au and 2,439 g/t Ag (3,574 g/t AgEq) over 1.03m, plus 3.78 g/t Au and 4.21 g/t Ag (723 g/t AgEq) over 7.78m, plus 9.16 g/t Au and 242 g/t Ag (974 g/t AgEq) over 0.84m, plus 1.33 g/t Au and 293 g/t Ag (293 g/t AgEq) over 0.96m; and hole PE23-242 with 7.36 g/t Au and 1,238 g/t Ag (1,826 g/t AgEq) over 2.41m. At Santa Elena, Sonora, the drilling program designed to convert Mineral Resources to Mineral Reserves at the Ermitaño mine, cut multiple high-grade intersections of gold and silver mineralization. Drilling highlights (true widths reported) include holes EWUG-23-012 with 7.02 g/t Au and 189 g/t Ag (750 g/t AgEq) over 10.05m, plus 20.95 g/t Au and 311 g/t Ag (1,987 g/t AgEq) over 4.88m, plus 7.99 g/t Au and 187 g/t Ag (826 g/t AgEq) over 2.38m; hole EWUG-23-007 with 4.51 g/t Au and 155 g/t Ag (516 g/t AgEq) over 8.18m, plus 4.33 g/t Au and 88 g/t Ag (434 g/t AgEq) over 3.93m, plus 18.50 g/t Au and 304 g/t Ag (1,784 g/t AgEq) over 1.71m, plus 7.44 g/t Au and 107 g/t Ag (702 g/t AgEq) over 1.32m; and hole EWUG-23-15 with 9.38 g/t Au and 230 g/t Ag (980 g/t AgEq) over 5.23m, plus 3.43 g/t Au and 192 g/t Ag (466 g/t AgEq) over 1.63m.
  • Torex Gold Resources Inc., provided a Q4, 2023 update on its Media Luna project in Guerrero.  In Q4 2023, Torex Gold’s Media Luna Project made significant progress towards completion. During Q4 2023, USD $124M was invested in the project, the highest quarterly spend to date. Total spend in 2023 was USD $366.3M, in line with revised annual project guidance of USD $360 to USD $390M. USD $350 to USD $400M has been guided for project capital expenditures in 2024, with quarterly expenditures through Q3 2024 expected to be similar to the level experienced in Q4 2023, before declining as the project nears completion. The project was 60% complete, with detailed engineering at 84% and procurement at 63%. Underground development and construction advanced, with the Guajes Tunnel breakthrough achieved ahead of schedule. Operational readiness activities continued, and the project remained on track for first concentrate production in late 2024 and commercial production in early 2025. Funding has exceeded remaining capital expenditures, and the project execution plan remains unchanged, with only minor adjustments to interim activities.

ON DEALS AND CORPORATE ISSUES

  • Capstone Copper Corp., announced that it has commenced trading on the Australian Securities Exchange (ASX) (Cozamin mine, Zacatecas). Capstone was admitted to the official list of ASX on January 31, 2024, and will trade under the ticker symbol “CSC” (ASX: CSC).
  • Colibri Resource Corporation appointed Douglas Coleman to its Advisory Board (Evelyn project, Sonora).
  • Fabled Silver Gold Corp., terminated its letter of intent with Kootenay Silver Inc., with respect to the proposed acquisition the Mecatona Property, Chihuahua.
  • Luca Mining Corp., appointed a new member to its Board of Directors (Tahuehueto project, Durango).
  • Defiance Silver Corp., clarified technical disclosures pertaining to its technical reports entitled “NI 43-101 Technical Report Preliminary Economic Assessment on the Tepal Project, Michoacan” dated February 24, 2017 with an effective date of January 17, 2017, and its technical report entitled “Technical Report and Resource Estimate, San Acacio Silver Deposit, Zacatecas, Mexico” dated September 26, 2014, with an effective date of April 1, 2014. The company understands it will need to amend the technical reports accordingly.

ON SOCIAL RESPONSIBILITY

  • Fortuna Silver Mines Inc., announced its objectives, metrics, and targets to reduce Scope 1 and Scope 2 greenhouse gas (GHG) emissions by 15% in 2023 compared to the forecasted emissions in 2030 without intervention measures. The company is committed to supporting the global ambition of net-zero GHG emissions by 2050. To achieve the 2030 GHG emissions reduction target, Fortuna plans to implement projects such as providing renewable energy to its operations, providing low-carbon electricity, and constructing and modernizing mine paste fill plants. Fortuna is committed to monitoring the GHG emissions of each of its mines on a monthly basis, reviewing progress against GHG emissions reduction target and its pathway, and assessing potential climate-related risks and opportunities.

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, silica sinter in a low-sulphidation epithermal vein system in a project in Durango. Photo by Miguel A Heredia

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

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Silica Ridge

By Miguel A Heredia

During the 4th week of the year (January 22nd to January 28th, 2024), at least 26 press releases were announced by companies working in Mexico, with seven reporting resources and developments of their projects, six communicating production results, six disclosing deals and corporate issues, five informing on exploration results, one announcing financing issues, and one commenting on Mexican issues.  ON MEXICO ISSUES, Orla Mining, Gatos Silver, and Minaurum reported the best drilling intercepts in Mexico on the fourth week of January, 2024. ON EXPLORATION, In Sonora, Infinitum commenced a 2,500m drilling program in its flagship La Adelita project, Sonora, Minaurum  released final 2023 drilling results at La Adelita project, and Tocvan reported rock chip samples results from its Picachos project. In Chihuahua, Reyna Silver shared results from Artificial Intelligence optimization of existing geophysical data from the Guigui project.  In Nayarit, Angel Wings provided an exploration update and filed a NI 43-101 technical report on its La Reyna project.   ON MINING, Golden Minerals commenced mining operations at its Velardeña mine in Durango. Americas Gold and Silver reported Q4 and full- year 2023 production results from its Cosalá mine operation in Sinaloa. Capstone announced Q4 and full-year 2023 production results and provided production and cost guidance for 2024 for its Cozamin mine in Zacatecas. Mag Silver reported Q4 and full-year 2023 production results from its Juanicipio project in Zacatecas. Sierra Metals provided a summary of the work conducted in the year 2023 (Bolivar mine, Chihuahua).  SilverCrest reported Q4 and full-year 2023 production and financial results from its Las Chispas mine in Sonora. ON FINANCING, Bear Creek closed its previously announced restructuring transaction with Sandstorm Gold Ltd (Mercedes Mine, Sonora). ON RESOURCES AND DEVELOPMENT, Discovery Silver outlined its 2024 work program for its Cordero project in Chihuahua. Endeavour provides a development update for its Terronera project in Jalisco. Kootenay announced updated mineral resource estimate for its La Cigarra project, Chihuahua.  Gatos Silver reported results from its resource definition drilling program and exploration work being conducted at its Cerro Los Gatos project, Chihuahua. Orla provided an update of the infill drilling program at its Camino Rojo sulphide deposit in Zacatecas.  Prime Mining revealed the 2024 outlook for its high-grade Los Reyes project in Sinaloa.  ON DEALS AND CORPORATE ISSUES, Angel Wing announced that it has changed its auditors (La Reyna project, Nayarit).  Goldgroup announced that the TSX determined to delist the company common shares (Cerro Prieto property, Sonora). Guanajuato Silver announced that it will be updating the technical reports of their Mexican mining operations. Infinitum Copper informed that it has already completes the necessary expenditure commitment to earn an initial 80% of La Adelita property, Sonora from Minaurum Gold Inc. Mexus announced management changes (Santa Elena property, Caborca, Sonora). Prime granted incentive stock options to management of the company (Los Reyes, Sinaloa). ON SOCIAL RESPONSIBILITY, No relevant news.

ON MEXICO ISSUE

  • Orla Mining Ltd., Gatos Silver Inc., and Minaurum Gold Inc., reported the best drilling intercepts in Mexico on the fourth week of January, 2024. Details are shown in the table below:

ON EXPLORATION

  • Infinitum Copper Corp., commenced a drilling program at its flagship La Adelita project, Sonora. The program will consists of 15 diamond holes for a total of 2,500m. Objective of the drilling program is to expand the size of the high-grade mineralized area at Cerro Grande zone as well as test for mineralization at depth in the Las Trancas zone.
  • Minaurum  Gold Inc., released 2023 drilling results from the last six holes drilled at La Adelita project in Sonora. Hole AD-23-0034 encountered sporadic mineralization across multiple horizons: 0.08% Cu, 0.2 g/t Au, 16 g/t Ag, and 0.7% Zn over 3m, plus 0.40% Cu, 0.46 g/t Au, 86 g/t Ag, and 0.26% Zn over 0.95m, plus 0.117% Cu, 1.03 g/t Au, 30 g/t Ag, and 0.18% Zn over 2.80m, and plus 0.90% Cu, 0.18 g/t Au, 43 g/t Ag, and 0.33% Zn over 4.05m.
  • Tocvan Ventures Corp., reported results of 75 rock chip samples from its Picachos project in Sonora. The 75 samples average 0.6 g/t Au and 2 g/t Ag with the values up to 15.9 g/t Au and 32 g/t Ag. “A new mineralized trend extending over 1.6 km in length has been discovered marked by old historic workings and exposure of mineralized veins and shear zones”.
  • Reyna Silver Corp., shared results from Artificial Intelligence (AI) optimization of existing geophysical data from the Guigui project in Chihuahua. Explore Tech´s proprietary AI algorithm highlight a strong, multi-layered magnetic anomaly southeast of the 0.5 sq.km sulphide- mineralized skarn footprint identified in 2022 drilling. Explore Tech’s platform first uses AI to identify and locate where a geophysical anomaly actually is and then design the optimum hole geometry to hit it. “The results reinforce existing geological thinking that the intrusive source for the district lies in that area and greatly enhance the area’s potential. Pads to drill the target are already permitted and accessible”.
  • Angel Wings Metals Inc., provided an exploration update and filed a NI 43-101 technical report on its La Reyna project, Nayarit. La Reyna is a contiguous block of fully titled mineral claims hat consolidates most of the historical Aguila de Oro mining district, with rock chip samples returning from nil to 27.12 g/t Au and nil to 2,938 g/t Ag., as well as anomalous values of Pb, Zn, Cu, Co, Bi, and Mo. “Mineralization is hosted in an extensive area of alteration that has been mapped over 70 square kilometers and is host to numerous past producing shallow mine and gambusino workings. To date, over 20 prospects with highly anomalous gold and silver have been identified on the project. A ground geophysics program including 11.2 line kilometers of Induced Polarization and 2 line kilometers of HSMAT is underway over El Polo-Dolorosa. Data is being processed with a report including the sections and maps due in early February”.

ON MINING

  • Golden Minerals Company commenced mining operations at its Velardeña mine in Durango. It begin mining in six stopes and is steadily ramping up daily production to reach a rate of approximately 150 tonnes per day  in March, and ultimately a full production rate of approximately 325 tpd in the second quarter.
  • Americas Gold and Silver Corporation reported Q4 and full-year 2023 production results from its Cosalá mine operation in Sinaloa. The company produced 321K Oz Ag, 2.7M Lb Pb, and 8.3M Lb Zn (3.8M Oz AgEq) in Q4, 2023 to complete a total production of 1.1M Oz Ag, 11.5M Lb Pb, and 34.1M Lb Zn in the full-year 2023.
  • Capstone Copper Corp., announced Q4 and full-year 2023 production results and provided production and cost guidance for 2024 for its Cozamin mine in Zacatecas. During Q4, 2023 the company produced 14.7M Lb Cu for a total production of 54.5M Lb Cu in the full year 2023. Capstone also provided production and cost guidance for 2024 and expects to produce between 49.3M Lb Cu and 53.8M Lb Cu at a cash costs of USD $1.85-USD $2.05 per Lb Cu produced. 
  • Mag Silver Corp., reported Q4 and full-year 2023 production results from its Juanicipio project in Zacatecas (56% / 44% Fresnillo plc and Mag Silver, respectively). In Q4, 2023, Juanicipio processed on 100% basis, 346,766 tonnes of 467 g/t Ag, 1.37 g/t Au, 1.3% Pb, and 2.4% Zn to produce 4.5M Oz Ag, 10.59K Oz Au, 9.19M Lb Pb, and 15.08M Lb Zn. For the full-year 2023, the tonnage processed on 100% basis was 1,268,756 tonnes of 520 g/t Ag, 1.39 g/t Au, 0.9% Pb, and 1.7% Zn to produce 16.8M Oz Ag, 36.7K Oz Au, 28.35M Lb Pb, and 44.75M Lb Zn.
  • Sierra Metals Inc., provided a summary of the work conducted in the year 2023 at its Bolivar mine in Chihuahua. The company announced that Bolivar mine achieved record production levels and that it also replaced 104% of the ore mined. On the other hand, Cusi mine in Chihuahua was placed on care and maintenance allowing management to direct full effort and resources to optimize the company’s two core assets at Yauricocha (Peru) and Bolivar (Mexico).  The company also announced that it raised CAD $16M and that its share price increased by more than 210%, moving from CAD $0.24 to CAD $0.75.
  • SilverCrest Metals Inc., reported Q4 and full-year 2023 production and financial results from its Las Chispas mine in Sonora. In Q4, 2023 the company milled 78,600 tonnes of 4.28 g/t Au and 410 g/t Ag, with metallurgical recoveries of 98.3% and 97.7% respectively to recover 14,100 Oz Au and 1.34M Oz Ag (2.47 M Oz AgEq), of which it sold 16,100 Oz Au and 1.27M Oz Ag (2.56M Oz AgEq) at average realized prices of USD $1,977 per Oz Au and USD $23.09 per Oz Ag, generating USD $61.3M of revenue. In the full-year 2023 the company milled 300,900 tonnes of 4.39 g/t Au and 423 g/t Ag, with metallurgical recoveries of 98.1% and 96.5% respectively to recover 59,700 Oz Au and 5.65M Oz Ag (10.4M Oz AgEq), of which it sold 58,200 Oz Au and 5,62M Oz Ag (10.25 M Oz AgEq), at average realized prices of USD $1,945 per Oz Au and USD $245.1M of revenue.

ON FINANCING

  • Bear Creek Mining Corporation closed its previously announced restructuring transaction with Sandstorm Gold Ltd. The Transaction is expected to improve the Company’s ability to produce free cash flow in the near term from the Mercedes mine in Sonora.

ON RESOURCES AND DEVELOPMENT

  • Discovery Silver Corp., outlined its 2024 work program for its Cordero project in Chihuahua. The Feasibility Study (FS) is nearing completion and is expected to be delivered later this quarter. The FS will include an additional 35,000m of reserve definition and expansion drilling, the results from the FS metallurgical testwork program as well as additional geotechnical and hydrogeology data collected in 2023. The Company will also provide an updated resource estimate concurrent with the results of the Study. In Permitting, the Environmental Impact Assessment is under review and approval by the Secretariat of the Environment and Natural Resource (SEMARNAT), while the Change of Land Use (CUS) known as Estudio Tecnico Justificativo (ETJ) will be finalized in the coming months with formal submission of the CUS expected to be made by 3Q 2024. Impact assessment and power installation studies were completed in 2023 confirming that there is sufficient capacity in the existing power grid to supply the project with power for operations at peak throughput levels. In 2023 the Company secured the surface rights that correspond with the planned open pit and key infrastructure locations at Cordero. The two potential sources of water for the project are local groundwater and water from local water treatment plants in the region. The Company has completed a hydro geological assessment through its Mexican specialist consultant utilizing data from hydrogeology drilling and pump test wells. Initial results indicate the potential for sufficient local groundwater for Phase 1 of the project (mill throughput of ~25,000 tonnes per day). In 2024, the company plans to complete mapping and sampling of new target areas along with 2,500 m of drilling.
  • Endeavour Silver Corp., provides a development update for its Terronera project in Jalisco. The company has made significant construction progress and has updated its initial capital cost, schedule, and execution plan. The table below summarizes the main items:

In terms of project funding, the company expects to make the first draw under the $120 million project loan debt facility in the first quarter of 2024. Construction of the project remains on track and the funds available under the project loan debt facility will be allocated to fund construction.

  • Kootenay Silver Inc., announced updated mineral resource estimate for its La Cigarra project, Chihuahua. The 2024 Mineral Resource Estimate (MRE) incorporates a significantly revised geological model compared to the previous resource and features a database of 201surface diamond and RC drillholes totaling 36,988 meters and 26,419 assay intervals. The below table shows the 2024 MRE for la Cigarra project:
  • Gatos Silver Inc., reported results from its resource definition drilling program being conducted at the South-East Deeps Zone, as well as an update of the exploration work carried out a its Cerro Los Gatos project in Chihuahua. Resource definition drilling highlights (true widths reported) include holes SE-557 with 245 g/t Ag, 2.0% Zn, 1.9% Pb, 0.3 g/t Au, and 0.67% Cu over 5.5m, including 528 g/t Ag, 0.3% Zn, 1.3% Pb, 0.06 g/t Au, and 1.41% Cu over 2.8M; hole SE-558 with 88 g/t Ag, 11.7% Zn, 3.7% Pb, 0.15 g/t Au, and 0.23% Cu over 3.1m, plus 70 g/t Ag, 2.7% Zn, 1.7% Pb, 0.03 g/t Au, and 0.3% Cu over 1.2m, plus 151 g/t Ag, 2.8% Zn, 6.1% Pb, 0.18 g/t Au, and 0.43% Cu over 4m, including 291 g/t Ag, 4.3% Zn, 12.2% Pb, 0.4 g/t Au, and 0.55% Cu over 1.6m: hole SE-559 with 103 g/t Ag, 16.5% Zn, 7.0% Pb, 0.14 g/t Au, and 0.21% Cu, plus 52 g/t Ag, 9.8% Zn, 3.2% Pb, 0.22 g/t Au, and 0.13% Cu over 2.4m; hole SE-560 with 58 g/t Ag, 3.2% Zn, 2.2% Pb, 0.05 g/t Au, and 0.09% Cu over 1.3m, plus 243 g/t Ag, 9.7% Zn, 6% Pb, 0.39 g/t Au, and 0.28% Cu in 3.3m; hole SE-562 with 31 g/t Ag, 3.1% Zn, 0.9% Pb, 0.16 g/t Au, and 0.08% Cu over 2.5m, plus 179 g/t Ag, 5.8% Zn, 4.5% Pb, 1.1 g/t Au, and 0.65% Cu over 2.5m, plus 20 g/t Ag, 5.8% Zn, 2.2% Pb, 0.4 g/t Au, and 0.02% Cu over 1.7m; hole SE-563 with 133 g/t Ag, 8.3% Zn, 3.2% Pb, 0.11 g/t Au, and 0.16% Cu over 8.9m, plus 54 g/t Ag, 2.8% Zn, 4.1% Pb, 0.07 g/t Au, and 0.11% Cu over 1.2m; and hole SE-272 with 97 g/t Ag, 7.8% Zn, 2.4% Pb, 0.24 g/t Au, and 0.35% Cu over 4.8m, including 201 g/t Ag, 15.4% Zn, 4.3% Pb, 0.25 g/t Au, and 0.73% Cu over 1.3m. Greenfields exploration work in Los Gatos District continues to advance in preparation for increased drilling expected to start in Q2 2024. One hole has been completed at Portigueño and one hole at Cascabel with positive indicator minerals and favourable structures present. The company also completed detailed mapping and rock geochemistry at the Esperanza, San Agustin, Portigueño, Cieneguita and San Luis areas to support drill target generation.
  • Orla Mining Ltd., provided an update of the 37, 677m infill drilling program at its Camino Rojo sulphide deposit in Zacatecas. Drilling highlights of 23 out of 56 holes include holes CRSX23-17 with 2.54 g/t Au over 68.5m, including 13.1 g/t Au over 1.5m; hole CRSX23-19C with 2.08 g/t Au over 124.5m, including 2.46 g/t Au over 60m, and including 11.7 g/t Au over 1.5m, and including 11.7 g/t Au over 3m, and including 3.11 g/t Au over 20.5m; hole CRSX23-20B with 2.22 g/t Au over 96.5m, including 3.24 g/t Au over 33.9m, including 12.8 g/t Au over 1.2m, and including 17.5 g/t Au over 1.6m; hole CRSX23-20F with 2.36 g/t Au over 65.4m, including 2.77 g/t Au over 13.5m, and including 2.86 g/t Au over 36.5m, and including 14.8 g/t Au over 1.5m; hole CRSX23-21A with 2.44 g/t Au over 49.5m, including 4.59 g/t Au over 21m, including 17.21 g/t Au over 1.5m, and including 18.8 g/t Au over 1.5m; hole CRSX23-23A with 3.41 g/t Au over 36m, including 5.94 g/t Au over 18m, and including 29.2 g/t Au over 3m; and hole CRSX23-24A with 2.94 g/t Au over 66.5m, including 4.98 g/t Au over 16.5m, including 21.7 g/t Au over 1.5m, and including 13.9 g/t Au over 1.5m.
  • Prime Mining Corp., revealed the 2024 outlook for its high-grade Los Reyes project in Sinaloa. The 2024 plans include the targeting completion of 40,000m of drilling and continue the geological mapping and geochemical sampling; continue preliminary investigations of metallurgical, geotechnical  and mine planning parameters, including process optimization, assessment of open pit VS underground opportunities and evaluation of permitting requirements; continue to engage with local ejidos through educational and community programming access improvements, and water access; and target a late-2024 resource increase. The exploration drilling will focus on extending the high-grade at Z-T areas; expanding the high-grade mineralization at Guadalupe East; increasing the Central Area resource; and generative target drilling of high-grade intercepts at Las Primas, Mariposa, Fresnillo, Mina, and others to further develop the resource potential at Los Reyes.

ON DEALS AND CORPORATE ISSUES

  • Angel Wing Metals Inc., announced that it has changed its auditors from Kenway Mack SlusarchukStewart LLP to Davidson & Company LLP (La Reyna project, Nayarit).
  • Goldgroup Mining Inc., announced that the TSX determined to delist the company common shares effective at the close of market on February 16, 2024 for failing to meet the continued listing requirements of the TSX (Cerro Prieto property, Sonora).
  • Guanajuato Silver Company Ltd., announced that, because of a disclosure review of the British Columbia Securities Commission, it will be providing updates to its NI 43-101 technical reports (El Cubo mine, Guanajuato).
  • Infinitum Copper Corp., informed that it has already completes the necessary expenditure commitment to earn an initial 80% of La Adelita property, Sonora from Minaurum Gold Inc., by making a total expenditure on the project of CAD $3,042,090.
  • Mexus Gold US announced management changes. The company and Mr. Mark Ashley have mutually agreed to terminate the August 2, 2023 contract between both parties. The termination of this agreement was completed on December 26, 2023 (Santa Elena property, in Caborca, Sonora).
  • Prime Mining Corp., granted incentive stock options to management of the company for a total of 991,626 options, 455,846 restricted share units, and 661,202 deferred share units. The Options were granted to management of the company and are exercisable at the price of $1.83 per share. The Options will vest and become exercisable over a three year period, with one-third vesting on the first year anniversary of the grant, one-third on the second year anniversary, and one-third on the third year anniversary (Los Reyes, Sinaloa).

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, silica ridge in a low-sulphidation epithermal vein system in a project in Zacatecas. Photo by Miguel A Heredia

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

/ gambusinoprospectormexico / Leave a comment

hydrothermal breccia with hematite-rich matrix

By Miguel A Heredia

During the 50th week of the year (December 11th to December 17th, 2023), at least 20 press releases were announced by companies working in Mexico, and 1 news published by the media, with seven reporting resources and developments, six disclosing deals and corporate issues, three announcing financing issues, three commenting on Mexican issues, one communicating production results, and one informing on exploration results. ON MEXICO ISSUES, Personnel from the Attorney General’s Office of the State of Coahuila announced that they will begin the search and recovery process for the bodies of the 10 miners who were trapped in the El Pinabete coal mine on August 3, 2022, located in Sabinas, Coahuila. Almaden announced that it delivered to the Mexican government a request for consultations in accordance with the comprehensive and progressive agreement for Trans-Pacific Partnership relating to an investment dispute with Mexico. Gold Resource, Vizsla Silver, Prime Mining, and Kootenay Silver reported the best drilling intercepts in Mexico on the second week of December, 2023. ON EXPLORATION, In Baja California Sur, King announced that the letter of intent (Oct 18, 2023) to acquire 50% of the Las Misiones project in Baja California Sur has lapsed and the Company will not be pursuing the project  at this time. ON MINING, Guanajuato Silver reported Mid-Q4, 2023 production results from their Mexican operations. ON FINANCING Argonaut closed its previously announced CAD $85M bought deal public offering (El Castillo mine, Durango). Heliostar completed its previously announced warrant exercise incentive program for gross proceeds of $5,274,463.20 (Ana Paula property, Guerrero).  Tocvan closed the second tranche of its previously announced non-brokered private placement for gross proceeds of $306,150 (Pilar project, Sonora). ON RESOURCES AND DEVELOPMENT, Fortuna Silver provided an exploration update on its San Jose mine, Oaxaca. Gold Resource reported the results of one of its recent step-out drill holes at Don David mine, Oaxaca.  Tocvan released trench channel sample results from its Pilar project, Sonora. Prime reported expansion drill results from its ongoing 60,000m 2023 drilling program at its Los Reyes project, Sinaloa. Vizsla released results from 15 holes from its flagship Panuco project, Sinaloa. Kootenay announced results from the last two holes of the 2023 drill program at its Columba project, Chihuahua. Minera Alamos announced that it filed on SEDAR an independent Technical Report and estimate of the Mineral Resource for its Santana mine in Sonora. ON DEALS AND CORPORATE ISSUES, Coeur appointed a new member to its Board of Directors (Palmarejo mine, Chihuahua). Defiance reported results of its annual general meeting of shareholders (San Acacio project, Zacatecas). Heliostar announced management changes and additions to its Board (Ana Paula project, Guerrero). Monumental appointed a new member to its Board of Directors (Jemi HREE project, Coahuila). Minera Alamos reported results from its annual general meeting of shareholders (Santana mine, Sonora). Almaden granted stock options to Directors, officers, and Employees of the company (San Pedro project, Jalisco). ON SOCIAL RESPONSIBILITY, No relevant news.

ON MEXICO ISSUE

  • Personnel from the Attorney General’s Office of the State of Coahuila announced that they will begin the search and recovery process for the bodies of the 10 miners who were trapped in the El Pinabete coal mine on August 3, 2022, located in Sabinas, Coahuila. Almost 500 days after the tragedy that cost the lives of 10 miners, the personnel responsible for the search and recovery tasks safely reached the galleries of the El Pinabete mine.
  • Almaden Minerals Ltd., announced that it delivered to the Mexican government a request for consultations in accordance with the comprehensive and progressive agreement for Trans-Pacific Partnership (CPTTP) relating to an investment dispute with Mexico. “The investment dispute arises out of certain acts and omissions of Mexico in breach of the CPTPP relating to the Company’s investment in the Ixtaca Gold-Silver Project. The Company has suffered substantial harm arising out of Mexico’s conduct in breach of its investment protection obligations under the CPTPP, including (without limitation):  the Mexican Ministry of Economy’s (Economia) declaration that the Project’s mineral titles were void; Economia’s reassessment of the original applications for the mineral titles holding them to be deficient and unfeasible, contradicting the position previously adopted by it, and violating the Company and its subsidiary’s right to amend or supplement the mineral title applications; and the Mexican Secretariat of Environment and Natural Resources’ (Secretaría del Medio Ambiente y Recursos Naturales, SEMARNAT) delay in issuance and ultimate refusal to issue the Project’s environmental permit (Manifiesto de Impacto Ambiental)”. The Company confirms that it is taking all necessary actions to preserve its rights and protect its investments in Mexico.
  • Gold Resource Corporation, Vizsla Silver Corp., Prime Mining Corp., and Kootenay Silver Inc., reported their best drilling intercepts in Mexico on the third week of November, 2023. Details are shown in the table below:

ON EXPLORATION

  • King Global Ventures Inc., announced that the letter of intent (Oct 18, 2023) to acquire 50% of the Las Misiones project in Baja California Sur has lapsed and the Company will not be pursuing the project  at this time.

ON MINING

  • Guanajuato Silver Company Ltd., reported Mid-Q4, 2023 production results from their Mexican operations. Results from October to the end of November are shown by mine in the table below:

ON FINANCING

  • Argonaut Gold Inc., closed its previously announced bought deal public offering of 223,685,000 common shares of the company at a price of CAD $0.38 for gross proceeds of CAD $85M. Part of the gross proceeds will be used for working capital purposes (El Castillo mine, Durango).
  • Heliostar Metals Ltd., completed its previously announced warrant exercise incentive program. A total of 17,581,544 common shares in the capital of the company were issued upon the exercise of 17,581,544 previously outstanding share purchase warrants, providing aggregate gross proceeds of $5,274,463.20 to the company. The proceeds of the incentive program will be used for exploration and development of the Ana Paula Project and for working capital purposes.  
  • Tocvan Ventures Corp., closed the second tranche of its previously announced non-brokered private placement. It consisted of the issuance of an aggregate of 680,333 units at a price of $0.45 per unit, for gross proceeds of $306,150. The proceeds of the raise will go towards the advancement of the Pilar Au-Ag project in Sonora.

ON RESOURCES AND DEVELOPMENT

  • Fortuna Silver Mines Inc., provided an exploration update on its San Jose mine, Oaxaca. It reported results from the drilling program at Jessi Vein. Drilling highlights (true widths reported) include holes SJOM-1357 with 1.8 g/t Au and 60 g/t Ag (204 g/t AgEq) over 7.1m; hole SJOM-1366A with 1.58 g/t Au and 195 g/t Ag (321 g/t AgEq) over 0.2m, plus 0.78 g/t Au and 91 g/t Ag (153 g/t AgEq) over 1.5m, plus 0.75 g/t Au and 102 g/t Ag (162 g/t AgEq) over 0.4m, plus 0.70 g/t Au and 96 g/t Ag (152 g/t AgEq) over 0.4m, plus 1.22 g/t Au and 161 g/t Ag (258 g/t AgEq) over 1m; hole SJO-1417 with 4.61 g/t Au and 489 g/t Ag (858 g/t AgEq) over 0.5m, plus 1.40 g/t Au and 140 g/t Ag (252 g/t AgEq) over 0.6m; hole SJOM-1418 with 1.13 g/t Au and 95 g/t Ag (185 g/t AgEq) over 0.8m; hole SJOM-1428 with 2.48 g/t Au and 347 g/t Ag (545 g/t AgEq) over 17m, including  6.26 g/t Au and 620 g/t Ag (1,121 g/t AgEq) over 0.4m, plus 1.98 g/t Au and 307 g/t Ag (465 g/t AgEq) over 0.3m, plus 11.27 g/t Au and 1,344 g/t Ag (2,246 g/t AgEq) over 0.5m, plus 11.07 g/t Au and 1,137 g/t Ag (2,023 g/t AgEq) over 0.5m, plus 2.5 g/t Au and 314 g/t Ag (514 g/t AgEq) over 0.3m, plus 9.42 g/t Au and 774 g/t Ag (1,528 g/t AgEq) over 0.2m, plus 32 g/t Au and 5,905 g/t Ag (8,465 g/t AgEq) over 0.5m; hole SJO-1430 with 0.61 g/t Au and 84 g/t Ag (133 g/t AgEq) over 0.9m, plus 8.26 g/t Au and 770 g/t Ag (1,431 g/t AgEq) over 1.1m, plus 0.7 g/t Au and 90 g/t Ag (146 g/t AgEq) over 1.7m, plus 1.25 g/t Au and 150 g/t Ag (250 g/t AgEq) over 4m, plus 2.11 g/t Au and 170 g/t Ag (339 g/t AgEq) over 0.3m; and hole SJO-1431 with 5.38 g/t Au and 576 g/t Ag (1,006 g/t AgEq) over 0.3m, plus 1.02 g/t Au and 114 g/t Ag (195 g/t AgEq) over 5.2m, including 7.16 g/t Au and 838 g/t Ag (1,411 g/t AgEq) over 0.2m, plus 1.18 g/t Au and 146 g/t Ag (240 g/t AgEq) over 0.2m, plus 1.45 g/t Au and 147 g/t Ag (263 g/t AgEq) over 0.4m, plus 1.29 g/t Au and 136 g/t Ag (239 g/t AgEq) over 0.3m
  • Gold Resource Corporation reported the results of one of its recent step-out drill holes at Don David mine, Oaxaca. This program will consist of 34,000m in 150 holes. Assays detail of hole 523136 are shown in the table below:

“The exceptional width and grade appears to occur at the confluence of two veins (Sandy 1 and Sandy 2) that are part of the Gloria and Three sisters vein arrays in the upper portion of the Mine, located approximately 250 meters below surface”.

  • Tocvan Ventures Corp., released channel sample results from four trenches cut at its Pilar project, Sonora. Highlights include TR-2023-02 with 1.87 g/t Au and 9 g/t Ag over 22m; and TR-2023-03 with 1.88 g/t Au and 8 g/t Ag over 14m, including 3.65 g/t Au and 17 g/t Ag over 6m.
  • Prime Mining Corp., reported expansion drill results from its ongoing 60,000m 2023 drilling program at its Los Reyes project, Sinaloa. The company drilled 10 holes at Central-Noche Buena Area and 3 holes at Central-San Miguel East Area. At Central-Noche Buena Area, drilling highlights (true widths reported) include holes 23NB-51 with 3.36 g/t Au and 12 g/t Ag (3.51 g/t AuEq) over 4.97m, including 2.70 g/t Au and 409 g/t Ag (8 g/t AuEq) over 2.56m; hole 23NB-53 with 1.62 g/t Au and 169 g/t Ag (3.81 g/t AuEq) over 2.56m, including 2.77 g/t Au and 420 g/t Ag (8.21 g/t AuEq) over 0.97m, plus 0.27 g/t Au and 81 g/t Ag (1.32 g/t AuEq) over 3.28m, plus 0.42 g/t Au and 65 g/t Ag (1.26 g/t AuEq) over 7.49m; and hole 23NB-52 with 0.45 g/t Au and 60 g/t Ag (1.23 g/t AuEq) over 8.40m, including 1.25 g/t Au and 155 g/t Ag (3.25 g/t AuEq) over 1.55m. At Central-San Miguel East Area, drilling highlights include holes 23SME-37 with 0.55 g/t Au and 60 g/t Ag (1.33 g/t AuEq) over 4.40m, including 2.03 g/t Au and 48 g/t Ag (2.65 g/t AuEq) over 0.65m; and hole 23SME-34 with 0.99 g/t Au and 96 g/t Ag (2.23 g/t AuEq) over 1.40m, including 0.79 g/t Au and 4 g/t Ag (0.85 g/t AuEq) over 5.85m.
  • Vizsla Silver Corp., released results from 15 holes from its flagship Panuco project, Sinaloa, targeting La Luisa Vein located about 700m west of the Napoleon Area resource. Drilling highlights (true widths reported)  include holes NP-23-419 with 58 g/t Ag, 7.74 g/t Au, 0.7% Pb, and 1.4% Zn (650 g/t AgEq) over 3.25m, 50 g/t Ag, 16.74 g/t Au, 0.3% Pb, and 1% Zn (1,220 g/t AgEq) over 0.62m; hole NP-23-397 with 32 g/t Ag, 1.44 g/t Au, 0.2% Pb, and 2.5% Zn (221 g/t AgEq) over 8.70m, including 77 g/t Ag, 6.55 g/t Au, 0.5% Pb, and 1.3% Zn (577 g/t AgEq) over 1.26m, plus 137 g/t Ag, 1.77 g/t Au, 0.4% Pb, and 5.4% Zn (455 g/t AgEq) over 3.55m, including 408 g/t Ag, 2.64 g/t Au, 0.3% Pb, and 18.2% Zn (1,228 g/t AgEq) over 0.70m; hole NP-23-420 with 95 g/t Ag, 6.97 g/t Au, 0.1% Pb, and 0.2% Zn (568 g/t AgEq) over 2.8m, including 116 g/t Ag, 11.5 g/t Au, 0.05% Pb, and 0.07% Zn (888 g/t AgEq) over 1.90; and hole NP-23-401 with 191 g/t Ag, 0.27 g/t Au, 0.04% Pb, and 0.5% Zn (214 g/t AgEq) over 0.90m, plus 386 g/t Ag, 1.43 g/t Au, 0.9% Pb, and 1.7% Zn (542 g/t AgEq) over 1.35m. “Recently completed shallow drilling has confirmed the northern continuation of the Luisa structure, expanding its potential strike-length to 1,670 metres”.  
  • Kootenay Silver Inc., announced results from the last two holes of the 2023 drill program at its Columba project, Chihuahua, which consisted of 12 holes for a total of 3,052.8m designed to extend known mineralization on the “D Vein” target area. Selected highlights for drill hole CDH-23-146 include 501 g/t Ag, 0.3% Pb, and 0.7%Zn over 10.26m, including 2,123 g/t Ag, 1.3% Pb, and 2.2% Zn over 1.54m, including 4,120 g/t Ag, 3.4% Pb, 2.8% Zn over 0.54m. Selected highlights for drill hole CDH-23-147 include 532 g/t Ag, 0.2% Pb, and 0.7% Zn over 8.19m, including 914 g/t Ag, 0.3% Pb, and 0.7% Zn over 1m, plus 777 g/t Ag, 0.6% Pb, and o.7% Zn over 1m. “The current drilling program is designed to extend the D-Vein in preparation of a wider spaced follow up program aimed to delineate a maiden resource expected in late 2024”.
  • Minera Alamos Inc., announced that it filed on SEDAR the results of the independent Technical Report and estimate of the Mineral Resource for its Santana mine in Sonora.

ON DEALS AND CORPORATE ISSUES

  • Coeur Mining Inc., appointed a new member to its Board of Directors (Palmarejo mine, Chihuahua).
  • Defiance Silver Corp., reported results of its annual general meeting of shareholders (San Acacio project, Zacatecas).
  • Heliostar Metals Limited announced management changes and additions to its Board. The company appointed to its non-executive director with immediately effect to its Board of Directors, and Mr. Charles Funk will add the title and role of President to his current title and responsibilities as Chief Executive Officer (Ana Paula project, Guerrero).
  • Monumental Energy Corp., appointed a new member to its Board of Directors (Jemi HREE project, Coahuila).
  • Minera Alamos Inc., reported results from its annual general meeting of shareholders (Santana mine, Sonora).
  • Almadex Minerals Ltd., granted stock options to Directors, officers, and Employees of the company to purchase an aggregate 1,075,000 common shares in the capital of the Company at an exercise price of $0.21 per share expiring on July 10th, 2028 (San Pedro project, Jalisco).

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, hydrothermal breccia with hematite-rich matrix in an epithermal vein system in a project in Zacatecas, Mexico. Photo by Miguel A Heredia.

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

/ gambusinoprospectormexico / Leave a comment

Old mine working along a quartz vein

By Miguel A Heredia

During the 46th week of the year (November 13th to November 19th, 2023), at least 25 press releases were announced by companies working in Mexico, with eight disclosing deals and corporate issues, seven communicating production results, four announcing financing issues, three reporting resources and developments of their properties, one informing on exploration results, one commenting on Mexican issues, and one discussing social issues. ON MEXICO ISSUES, Torex Gold reported their best drilling intercepts in Mexico on the third week of November, 2023. ON EXPLORATION, In Sinaloa, Centenario initiated its first ever drilling program at its Eden project. ON MINING, Argonaut reported Q3, 2023 production and financial results from their Mexican mine operations. Sierra Metals announced Q3, 2023 production and financial results from its Bolivar Mine, Chihuahua. Orla reported Q3, 2023 production and financial results from its Camino Rojo Mine, Zacatecas. Discovery Silver reported Q3, 2023 financial results (Cordero project, Chihuahua). US Antimony will present Q3, 2023 financial results this November 17, 2023 (Los Juarez project, Queretaro). Starcore reported Q2, 2023 production results from its San Martin mine, Queretaro. Torex announced Q3, 2023 production and financial results from its El Limon-Guajes Mine Complex, Guerrero. ON FINANCING Sonoran Desert announced consolidation of its common shares (Cuatro Hermanos project, Sonora). GR Silver completed a non-brokered private placement for gross proceeds of $1.2M (Plomosas project, Sinaloa). Heliostar announced a warrant exercise incentive program to advance its Ana Paula project, Guerrero. Sierra Madre announced conversion of subscription receipts (La Guitarra mine, State of Mexico). ON RESOURCES AND DEVELOPMENT, Torex received approval from Mexico’s Secretariat of Environment and Natural Resources (SEMARNAT) for in-pit tailings deposition (Media Luna project, Guerrero). Discovery Silver provided a summary of key events for Q3, 2023 and subsequent to quarter-end (Cordero project, Chihuahua). Torex reported results from its 2023 El Limon-Guajes underground drilling program. ON DEALS AND CORPORATE ISSUES, Fortuna (San Jose mine, Oaxaca), Silver Storm (La Parrilla mine, Durango), and Vortex (Riqueza Marina project, Oaxaca) announced that they will be attending the 121 Mining Investment London Conference. Vizsla appointed Mr. Eduardo Luna to its Board of Directors (Panuco project, Sinaloa). Sierra Metals announced that it will start trading on the OTCQX Market in the United States (Bolivar mine, Chihuahua). Fresnillo completed a USD $171K payment to Radius for the development of Plata Verde property in Chihuahua. Monumental Minerals announced name change to Monumental Energy Corp. Silver Valley appointed new members to its Board of Directors (Mexi-Can Lithium-potash project in Zacatecas and San Luis Potosi). ON SOCIAL RESPONSIBILITY, Alamos Gold releases its annual Environmental, Social, and Governance (ESG) 2022 report (Mulatos Mine, Sonora).

ON MEXICO ISSUE

  • Torex Gold Resources Inc., reported their best drilling intercepts in Mexico on the third week of November, 2023. Details are shown in the table below:

ON EXPLORATION

  • Centenario Gold Corp., initiated its first ever drilling program at its Eden project in Sinaloa. This core drilling program will consists of 1.500m in 10-12 holes to test the strike and down-dip extensions of Eden’s Buenavista vein-breccia mineralized corridor E-NE and S-SW of the old mining workings area.

ON MINING

  • Argonaut Gold Inc., reported Q3, 2023 production and financial results from their Mexican mine operations (all dollar amounts are expressed in US dollars). At La Colorada, Sonora, the company reported that it sold 7,224 Oz Au; a cost of sales of $ 13,722,000; a cost of sales of $1,900 per Oz Au sold; a production cost of $10,883,000; a cash cost of $10,646,000; an AISC of $11,148,000; and cash cost and AISC of $1,474 and $1,543 per Oz Au sold respectively. At San Agustin, Durango, Argonaut reported that it sold 10,327 Oz Au; a cost of sales of $ 19,019,000; a cost of sales of $1,842 per Oz Au sold; a production cost of $17,011,000; a cash cost of $16,066,000; an AISC of $16,952,000; and cash cost and AISC of $1,550 and $1,642 per Oz Au sold respectively. At El Castillo, Durango, the company reported that it sold 4,111 Oz Au; a cost of sales of $ 6,559,000; a cost of sales of $1,595 per Oz Au sold; a production cost of $6,167,000; a cash cost of $6,091,000; an AISC of $6,229,000; and cash cost and AISC of $1,482 and $1,514 per Oz Au sold respectively.
  • Sierra Metals Inc., announced Q3, 2023 production and financial results from its Bolivar Mine, Chihuahua (all amounts are expressed in US dollars). The company processed 362,890 tonnes to produce 8.1M Lb CuEq at a cash cost and AISC of $2.15 and $3.57 per Lb CuEq payable respectively. Sierra Metals reported a cost of sales of $22,860,000; a total cash cost of $17,245,000; a total AISC of $30.874, 000; and a cash cost of $47.52 per tonne processed.
  • Orla Mining Ltd., reported Q3, 2023 production and financial results from its Camino Rojo Mine, Zacatecas (all amounts expressed in US dollars). The company produced 32,425 Oz Au and sold 31,061 Oz Au at a realized price of $1,921 per Oz Au. The company reported cost of sales of $16M, and a cash cost and AISC of $527 and $743 per Oz Au respectively. Orla announced revenue of $60.3M; a net income of $5.4; adjusted earnings of $6.6M; and earnings per share of $0.02; adjusted earnings per share of $0.02; a cash flow from operating activities before changes in non-cash working capital of $21.8M; and a free cash flow of $18.8M. Finally, it reported as of September 30, 2023, a cash and cash equivalent of $132.8M, and a net debt of $3.4M.
  • Discovery Silver Corp., announced Q3, 2023 financial results (all amounts expressed in Canadian dollars). The company reported a net loss of $2,207.479; a basic and diluted per share of $0.01; a net loss and total comprehensive loss of $3,059,766; and a total weighted average shares outstanding of $395,720,230. As of September 30, 2023 the company also reported a cash and cash equivalents of $59,931,068; total assets of $150,770,808; total current liabilities of $13,327,861; a working capital of $59,402,439; and total shareholders´ equity of $132,902,518. Subsequent to September 30, 2023, the Company received a refund for the cumulative IVA return filed of approximately $8.0M, including interest and inflationary adjustments (Cordero project, Chihuahua).
  • US Antimony Corporation will present Q3, 2023 financial results this November 17, 2023 (Los Juarez project, Queretaro).
  • Starcore International Mines Ltd., reported Q2, 2023 production results from its San Martin mine, Queretaro. The company milled 58,019 tonnes of 1.42 g/t Au and 15 g/t Ag with metallurgical recoveries of 85.23% and 48.81% respectively, to produce 2,420 Oz AuEq.
  • Torex Gold Resources Inc., announced Q3, 2023 production and financial results from its El Limon-Guajes Mine Complex, Guerrero (all amounts expressed in US dollars). The company produced 85,360 Oz Au and sold 81,752 Oz Au at a total cash of $1,086 per Oz Au, an AISC of $1,450 per Oz Au, at an average realized price of $1,944 per Oz Au. Torex reported revenues of $160.1M; cost of sales of $133M; earnings from mine operations of $27.1M; net income of $10.5M; adjusted net earnings of $11.1M; EBITDA of $79.4M; cash and cash equivalents of $209.4M; lease- related obligations of $21.1: and net cash of $188.3M. The company is confidence in achieving full year production guidance of 440,000 to 470,000 Oz Au.

ON FINANCING

  • Sonoran Desert Copper Corporation announced consolidation of its issued and outstanding common shares on a ratio of one post-consolidation share for four pre-consolidation shares. The shares of the company will trade on a post-consolidation basis under the new CUSIP 83569N207 (ISIN: CA83569N2077). “Company currently has 101,139,062 shares issued and outstanding. Following the consolidation, there will be approximately 25,284,766 shares issued and outstanding (Cuatro Hermanos project, Sonora).
  • GR Silver Mining Ltd., completed a non-brokered private placement for gross proceeds of $1.2M. Net proceeds will be used to pay outstanding amounts currently owing to persons who are arm’s length to the Company, to pay outstanding amounts owing to management and directors of the Company, and to fund general working capital (Plomosas project, Sinaloa).
  • Heliostar Metals Ltd., announced a warrant exercise incentive program designed to encourage the early exercise of up to 46,363,630 common share purchase warrants issued on March 16, 2023. “Each Incentive Warrant will allow the holder to acquire one Common Share at an exercise price of $0.40 for a period of two years following the date of the issuance of the Incentive Warrant. A holder may elect to exercise all, none, or a portion of their Outstanding Warrants. Each Warrant is currently exercisable to purchase one Common Share at $0.30 per Common Share until March 16, 2026. Any Outstanding Warrants remaining un-exercised after 12:00 p.m. PST on December 8, 2023 will remain outstanding and continue to be exercisable pursuant to their existing terms”. Net proceeds will be used to advance its Ana Paula project, Guerrero, and for general working capital.
  • Sierra Madre Gold and Silver Ltd., announced conversion of subscription receipts. “The escrow release conditions of all 5,123,092 subscription receipts have been satisfied and the proceeds from the purchase of the subscription receipts have been released from escrow. As a result, the subscription receipts have converted into a total of 5,123,092 common shares in the capital of the Company, and the Company now has access to the $3,330,010 in proceeds” (La Guitarra mine, State of Mexico).

ON RESOURCES AND DEVELOPMENT

  • Torex Gold Resources Inc., received approval from Mexico’s Secretariat of Environment and Natural Resources (SEMARNAT) regarding an amendment to the key environmental permit (MIA) for the Media Luna project in Guerrero, which will allow for the deposition of tailings into the mined-out Guajes open pit.
  • Discovery Silver Corp., provided a summary of key events for Q3, 2023 and subsequent to quarter-end. Highlights from the Q3, 2023 activities performed include: results reported from the Feasibility Study (FS) metallurgical test program demonstrating higher silver recoveries of up to 7% to the precious metals concentrate at significantly lower reagent consumption; formal submission for evaluation of the MIA to Secretaría de Medio Ambiente y Recursos Naturales (SEMARNAT), the federal government agency responsible for evaluating MIA submissions; completion of the reserve expansion and definition component of our FS program   consisting of an additional 35,000 m of drilling in over 100 drill holes completed since the cut-off for the Pre-Feasibility Study (PFS) with results demonstrating the potential to further grow reserves within and on the margins of the open pit; release of the Company’s 2022 Environmental, Social and Governance (“ESG”) report highlighting the Company’s current practices and priorities going forward (Cordero project, Chihuahua).
  • Torex Gold Resources Inc., reported results from its 2023 El Limon-Guajes (ELG) underground drilling program. As of the end of September, approximately 54,600 m across 235 holes had been drilled as part of the 2023 ELG brownfield and near-mine exploration and drilling programs, representing 96% of the planned metres for the year. Year to date, assay results have been received for 55% of the total holes drilled. Highlights at El Limon Trend Sur include holes LS-293 with 20.1 g/t Au, 12 g/t Ag, and 0.06% Cu (20.74 g/t AuEq) over 4.63M; hole LDUG-239 with 10.94 g/t Au, 12 g/t Ag, and 0.41% Cu (11.75 g/t AuEq) over 22.91m; hole LDUG-290 with 9.97 g/t Au, 8 g/t Ag, and 0.93% Cu (11.55 g/t AuEq) over 14.93m; hole LDUG-296 with 9.17 g/t Au, 9 g/t Ag, and 0.47% Cu (10.03 g/t AuEq) over 14.35m; and hole LDUG-289 with 5.26 g/t Au, 31 g/t Ag, and 1.56% Cu (8.13 g/t AuEq) over 12.43m. Highlights at El Limon Deep Trend include holes LDUG-256 with 32.95 g/t Au, 7 g/t Ag, and 0.54% Cu (33.91 g/t AuEq) over 9.08m; and hole LDUG-268 with 35.41 g/t Au, 12 g/t Ag, and 0.16% Cu (35.81 g/t AuEq) over 4.83m, plus 6.58 g/t Au, 4 g/t Ag, and 0.15% Cu (6.87 g/t AuEq) over 5.39m. Highlights at Sub-Sill Trend include hole SST-313 with 23.18 g/t Au, 9 g/t Ag, and 0.01% Cu (17.74 g/t AuEq) over 4.69m. Highlights at El Limon West Trend include holes LS-287 with 14.98 g/t Au, 73 g/t Ag, and 1.16% Cu (17.74 g/t AuEq) over 5.4m, plus 9.16 g/t Au, 10 g/t Ag, and 0.47% Cu (10.04 g/t AuEq) over 13.4m; and hole LS-229 with 2.36 g/t Au, 65 g/t Ag, and 2.33% Cu (6.9 g/t AuEq) over 3.38m.

ON DEALS AND CORPORATE ISSUES

  • Fortuna Silver Mines Inc.(San Jose mine, Oaxaca), Silver Storm Mining Ltd., (La Parrilla mine, Durango), and Vortex Metals Inc., (Riqueza Marina project, Oaxaca)announced that they will be attending the 121 Mining Investment London Conference from November 20 to 21, 2023.  
  • Vizsla Silver Corp., appointed Mr. Eduardo Luna to its Board of Directors (Panuco project, Sinaloa). “Vizsla has granted 400,000 stock Options at an exercise price of $1.36 to a director and a consultant of the Company, pursuant to the Company’s Omnibus Equity Incentive Compensation Plan. The Options are exercisable for a period of five years and will vest over the next two years. The Options are subject to the approval and policies of the TSX Venture Exchange and the NYSE American”.
  • Sierra Metals Inc., announced that it will start trading on the OTCQX Market in the United States under the symbol “SMTSF”. Sierra Metals continues to trade on the Toronto Stock Exchange under the symbol “SMT” (Bolivar mine, Chihuahua).
  • Fresnillo plc completed a USD $171K payment to Radius Gold Inc., for the development of its Plata Verde property in Chihuahua, under the terms of an Exclusivity Agreement between the companies. A maiden drill program is anticipated at Plata Verde in Q1 2024. Minera San Julian, a wholly owned subsidiary of Fresnillo plc, has an Exclusivity Period to January 7, 2024 to negotiate a definitive agreement that would include an option agreement to earn a 70% interest in Plata Verde.  Minera San Julian has the right to extend its Exclusivity Period for 6 additional months beyond January 7, 2024, by providing Geonorte, a wholly owned subsidiary of Radius Gold, a minimum of USD $500K to commence drilling at Plata Verde.  Such drilling shall be initiated within 3 months following January 7, 2024.
  • Monumental Minerals Corp., announced name change to Monumental Energy Corp., effective on November 21, 2023.  The company’s common shares will trade on the TSX Venture Exchange under the new name. In connection with the name change, the Company’s trading symbol will be changed to “MNRG”.
  • Silver Valley Metals Corp., appointed new members to its Board of Directors (Mexi-Can Lithium-potash project in Zacatecas and San Luis Potosi).

ON SOCIAL RESPONSIBILITY

  • Alamos Gold Inc., releases its annual Environmental, Social, and Governance (ESG) 2022 report, which outlines its performance across its operations, projects, and offices, and provides directions on planned initiatives for 2023. Highlights of the significant progress achieved by the company during the past year include: an 8% growth in its workforce, with 77% hired from local communities, and a 36% reduction in employee turnover rate; a company-wide target of a 30% reduction in absolute greenhouse gas (“GHG”) emissions by 2030, achieving a 6% reduction in total Scope 1 and 2 GHG emissions in 2022; zero significant environmental incidents during the year, including zero reportable tailings-related incidents; $1.8M invested in local community initiatives including donations, sponsorships, community programs and infrastructure; the Mulatos mine was awarded the Silver Helmet by the Mining Chamber of Mexico (CAMIMEX) in recognition of outstanding health and safety performance; the Mulatos mine was also awarded the Socially Responsible Company (Empresa Socialmente Responsible) Award by CEMEFI, the Mexican Center for Philanthropy, for the 14th consecutive year, and was the recipient for the Award for Corporate Ethics and Values in Industry for the third consecutive year; completed close to 1,700 training hours for occupational health and safety and emergency management; introduced the Island Gold Employee Wellness Program with licensed physical therapists on site; and three years in compliance with the World Gold Council’s Responsible Gold Mining Principles (RGMPs), and developed 12 new Alamos Sustainability Standards.

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, old mine working along a gold quartz vein hosted in rhyolites in a low-sulphidation epithermal vein system in a project in Zacatecas, Mexico. Photo by Miguel A Heredia.

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

/ Gambusino Prospector / Leave a comment

By Jorge Cirett                                             

During the 45th week of the year (November 6th to November 12th, 2023), companies working in Mexico posted 29 news releases. Two companies reported exploration advances on their properties and twelve companies released Q3 2023 reports. Two companies informed on financing rounds, one on the granting of share options and one more on its share consolidation process. One company amended the terms on a property acquisition, one is reviewing its strategic options forward, one more is waiting for mining permits and two announced director’s appointments. ON MEXICO ISSUES, Ganfeng Lithium Company is trying to negotiate with the Mexican government the recent cancellation of its mining concessions in Sonora. ON EXPLORATION, In Chihuahua, Mammoth Resources presented metallurgical results from Tenoriba. In Zacatecas, Radius Gold presented drilling results from Tropico. ON MINING, Capstone Copper, Endeavour Silver, Gold Resource, Pan American Silver, Aura Minerals, Gatos Silver, Fortuna Silver, SilverCrest Metals, Coeur Mining, Avino Silver, Golden Minerals and MAG Silver presented Q3 2023 production results. ON FINANCING, Tocvan Ventures is to close a CAD$500 K financing round. Golden Minerals closed a US$4.2 M public offering. Minaurum Gold granted stock options to directors, officers and consultants. Kootenay Silver announced the consolidation of its shares.  ON RESOURCES AND DEVELOPMENT, Heliostar Metals reported drilling results from its Ana Paula project in Guerrero. Prime Mining reported on drilling at its Los Reyes project in Sinaloa. ON DEALS AND CORPORATE ISSUES, Pantera Silver amended the terms on the acquisition of the Nuevo Taxco project in Guerrero. Bear Creek Mining announced the appointment of directors of the company. Gold Resource is reviewing its strategic alternatives, including the potential sale of the company. Minaurum Gold announced the appointment of Rubén Padilla to the board of directors. Osisko Development is waiting for mining permits at San Antonio, in Sonora.  ON SOCIAL RESPONSIBILITY, Argonaut Gold, SilverCrest Metals and Avino Silver presented information on their impact on communities.

ON MEXICO ISSUES

  • Ganfeng Lithium Company is trying to negotiate with the Mexican government the recent cancellation of its mining concessions in Sonora.

ON EXPLORATION

  • Radius Gold Inc. provided an update of drilling at its Tropico project in Zacatecas. The company completed an initial 1,300 m diamond drill program in eight holes, with assays received for the first seven holes. Drilling is planned to resume upon the receipt of remaining assays. Highlighted core length results comprise 29.18 m @ 0.34 gpt Au, 4 gpt Ag; 30.10 m @ 0.35 gpt Au, 3 gpt Ag; 44.20 m @ 0.28 gpt Au, 2 gpt Ag; 28.52 m @ 0.28 gpt Au, 3 gpt Ag; 36.25 m @ 0.55 gpt Au, 9 gpt Ag (including 7.52 m @ 1.40 gpt Au, 29 gpt Ag); 12.30 m @ 0.44 gpt Au, 3 gpt Ag. “The expected hydrothermal breccia pipe was not found vertically below the sinter as predicted by the geophysics, instead is rather un-expectedly dipping at 45o east and has now been defined under soil cover 200m to the east of the outcropping target”.
  • Mammoth Resources Corp. announced results from bottle roll tests performed on three composite samples of assay reject sample material of drill holes from the Carneritos area of its Tenoriba property in Chihuahua. Results from oxide material reached 92% and 88% dissolution Au and 55% Ag in 12 hours and 94% and 91% Au, 59% Ag after 96 hours. Results for the oxidized-sulfide transition material reached 72% Au, 61% Ag in 12 hours and 75% Au, 64% Ag in 96 hours. “Based on the success from these initial bottle roll tests, Mammoth has commenced testing a coarser fraction of the oxidized and mixed oxidized-sulfide zone material and preliminary tests of a sulfide sample and looks forward to reporting on these results in the near future”.   

ON MINING

  • Capstone Copper Corp. reported financial results for Q3 2023, including figures from its Mexican operations. Of a consolidated production of 40.3 K tonnes Cu during the quarter, 5.9 K tonnes were produced at Cozamin, in Zacatecas, at $1.85 cash cost per Lb Cu. “Q3 2023 infill drilling at the Mala Noche Main Vein West Target was on hold while the development of the lower elevation mine cross-cut was completed. Infill drilling will recommence in early Q4 2023 to support an updated mineral resource estimate in 2024”.
  • Endeavour Silver Corp. announced financial and operating results for Q3 2023. Consolidated production at the Bolañitos (Guanajuato) and Guanaceví (Durango) mines during the quarter of 1.46 M Oz Ag, 9,089 Oz Au (1.87 M Oz AgEq) at cash cost $17.94 per Oz Ag and ASIC of $24.10 per Oz Ag. “Cost metrics were significantly impacted by lower production at the Guanaceví mine and increased operating development resulting from mine sequencing changes required to focus on improved access and ventilation as well as plant maintenance required during the last week of September”. Cash position of $41 M and working capital of $75.9 M by the end of the period. During the quarter $23.4 M were raised, primarily to fund the Terronera mine construction.
  • Gold Resource Corp. presented operational results for the year to date from its Don David mine in Oaxaca. A total of 14,777 Oz Au, 778 K Oz Ag, 8,772 tonnes Zn, 904 tonnes Cu, 3,681 tonnes Pb were produced on the year to date at total cash cost after co-product credits of $1,389 per Oz AuEq on the last quarter. At the quarters end the company had a cash balance of $6.7 M with no debt and working capital of $13.8 M.
  • Pan American Silver Corp. reported results for the third quarter 2023, without disclosing production figures by project. The company produced 5.7 M Oz Ag, 244.2 K Oz Au, with a silver segment cash cost of $13.13 and an AISC of $18.19, to end the period with $832.1 M, inclusive of cash and investments of $386 M, a $750 M revolving line of credit and $809 M of total debt primarily related to the acquisition of Yamana. At La Colorada, in Zacatecas, “the Company invested $14.0 million of project capital in Q3 2023 to advance the La Colorada Skarn project, largely for exploration and the preliminary economic study underway, as well as advancing the excavation of the concrete-lined ventilation shaft”. The preliminary economic study for the project is to be released by year-end 2023.
  • Aura Minerals Inc. filed consolidated financial statements for the period ended on September 30th 2023. Consolidated production from all its mines reached 64,875 Oz AuEq, of which 27,933 Oz AuEq were produced at Aranzazu, in Zacatecas. The AISC of consolidated production was $1,437 per Oz Au. Aura Minerals ended the quarter with a cash balance of $179 M and a net debt of $112.1 M.
  • Gatos Silver Inc. announced third quarter 2023 financial and operating results. The company has a 70% interest in the Cerro Los Gatos mine in Chihuahua, which processed 268.3 K tonnes at a rate of 2,916 tpd, averaging 0.30 gpt Au, 285 gpt Ag, 1.84% Pb, 3.82% Zn, to produce 1.28 K Oz Au, 2.22 M Oz Ag, 9.5 M Lb Pb, 13.8 M Lb Zn, or 3.46 M Oz AgEq at co-product cash cost of $14.42 and a co-product AISC of $17.64 per Oz AgEq. As of October 31, 2023, the company had $57.7 M in cash, no debt and a $50 M revolving credit facility available.
  • Fortuna Silver Mines Inc. reported financial and operating results for the third quarter 2023. The company consolidated production from its operations in several countries was 94,821 Oz Au, 1.68 M Oz Ag. At the San Jose mine in Oaxaca, 247.5 K tonnes were processed at a rate of 2,845 tpd, grading 189 gpt Ag, 1.14 gpt Au, recovering 91% Ag, 91% Au, to produce 1.37 M Oz Ag, 8,205 Oz Au, at a cash cost of $13.84 per Oz AgEq and an AISC of $18.04 per Oz AgEq. Infill drilling led to the discovery of the Yessi vein, a blind structure 200 m horizontally from existing underground infrastructure, with highlighted true width intercepts of 9.9 m @ 1,299 gpt AgEq and 5 m @ 621 gpt AgEq.
  • SilverCrest Metals Inc. released its financial results for the third quarter of 2023 and expanded on October 2023 operational results from Las Chispas mine, in Sonora. During the period the company mined 83,800 tonnes, processing 114,500 tonnes at a daily rate of 1,245 tpd, averaging 4.35 gpt Au, 413 gpt Ag, recovering 98.3% Au, 98.1% Ag to produce 15,700 Oz Au, 1.49 M Oz Ag at cash cost $6.53 per Oz AgEq and an AISC of $12.23 per Oz AgEq. During the quarter 14,183 m of exploration drilling was completed, 83% in resource conversion and the rest in new vein targets, at a cost of $2.8 M. By the end of the Period SilverCrest held 70.0 M in cash and 11.7 M in bullion.
  • Coeur Mining Inc. reported third quarter 2023 financial results including figures from its operations in Mexico. At Palmarejo, in Chihuahua, 501.7 K tonnes were milled, averaging 1.71 gpt Au, 114.1 gpt Ag, recovering 97.6% Au, 86.9% Ag to produce 26,870 Oz Au, 1.60 M Oz Ag at CAS of $917 per Oz Au and CAS of $15.56 per Oz Ag. “The focus of exploration has transitioned from primarily mapping and sampling to more intensive drilling from four rigs during the quarter compared to one rig in the previous quarter…. focused on finding the intersection of structures where there is potential for a higher-grade shoot”. During the period Palmarejo apported 34% of the gold and 69% of the silver produced by Coeur, at the lowest costs per ounce. Full-year production is expected be 100 to 112.5 K Oz Au, 6.5 to 7.5 M Oz Ag at Palmarejo. Coeur ended the quarter with $53 M in cash and $220 M available capacity under its $390 M revolving credit facility and $7 M of marketable securities.
  • Avino Silver & Gold Mines Ltd. released consolidated financial results for the third quarter 2023. At the Avino mine in Durango, 154.5 K tonnes were milled to produce 237 K Oz Ag, 2,077 Oz Au, 1.14 M Lb Cu, or 591.2 K Oz AgEq at cash cost $16.90 per Oz AgEq. Recent deep drilling indicates that “The vein system continues to be open along strike and at depth”.  At the end of the period Avino had $1.85 M in cash and $7.44 M in working capital.
  • Golden Minerals Co. released financial results and business summary for the quarter ending on September 30, 2023. The company is working on “permitting, equipment readiness, arrangements with union staff, contract miners, plant operators and support personnel. The Velardeña mines last operated in November 2015”. Also during the period a PEA report for the Velardeña properties in Durango was filed. Mining activities were concluded at Rodeo, in Durango in June 2023, and continued processing stockpiled material until August, with the pouring of the last doré in September. At the end of the period Golden Minerals held $1.6 M in cash and no debt.
  • MAG Silver Corp. announced unaudited financial results for Q3 2023. At Juanicipio (Fresnillo PLC 56% / MAG Silver 44%) in Zacatecas, 313.1 K tonnes were mined, 322.2 K tonnes processed @ 523 gpt Ag, 1.32 gpt Au, 1.33% Pb, 2.25% Zn, to produce 4.29 M Oz Ag, 7.76 K Oz Au, 7.69 M Lb Pb, 9.59 M Lb Zn at cash cost $4.68 per Oz Ag and an AISC of $9.19 per Oz Ag. The Juanicipio processing facility has achieved nameplate capacity, with Ag recovery above 88%. By the end of the period MAG held working capital of $55.1 M, including cash of $58.5 M and no long-term debt.

ON FINANCING

  • Tocvan Ventures Corp. announced the incoming closing a non-brokered private placement for gross proceeds of up to CAD$500 K (Pilar, Sonora).
  • Golden Minerals Co. announced and closed during the week a public offering, raising US$4.2 M (Velardeña, Durango).
  • Minaurum Gold Inc. granted 1.75 M common share stock options to directors, officers and consultants (Alamos Silver, Sonora).
  • Kootenay Silver Inc. announced that the 10 to 1 consolidation of the outstanding common shares of the company will be made effective on November 14, 2023 (Columba, Chihuahua).

ON RESOURCES AND DEVELOPMENT

  • Heliostar Metals Ltd. reported results from two diamond drill holes at the Parallel Panel target at the Ana Paula project in Guerrero. This target is 50 m north of the High Grade Panel, and was identified over the last few months. Highlighted core length intervals comprise 14.75 m @ 5.06 gpt Au (including 5.3 m @ 11.7 gpt Au); 18.1 m @ 2.3 gpt Au; 147.05 m @ 4.13 gpt Au (including 16 m @ 11.2 gpt Au and 7.0 m @ 14.5 gpt Au and 8.6 m @ 8.70 gpt Au). “The new holes demonstrate good continuity of width and grade within the Parallel Panel”.
  • Prime Mining Corp. reported expansion drilling results from Los Reyes project in Sinaloa. Highlighted true width intervals comprise 20.10 m @ 2.11 gpt Au, 29 gpt Ag (including 6.30 m @ 5.74 gpt Au, 43 gpt Ag); 5.50 m @ 1.06 gpt Au, 73 gpt Ag (including 1.80 m @ 2.57 gpt Au, 79 gpt Ag); 4.45 m @ 1.04 gpt Au, 8 gpt Ag (including 1.00 m @ 3.26 gpt Au, 20 gpt Ag). “Today’s results, along with previously released holes in this area, have extended mineralization approximately 250m down-dip from the May 2023 resource pits”. There are now six rigs operating at Los Reyes, extending the high-grade Z-T area shoots at depth and along strike, expanding the two other resource areas and exploring new generative targets. “Prime has completed over 48,000 m of its planned 60,000 m 2023 drill program”.

ON DEALS AND CORPORATE ISSUES

  • Pantera Silver Corp. amended the terms of the Nuevo Taxco option agreement to acquire the 1,100-ha project in Guerrero. Under the new terms Pantera is to issue 1.5 M shares in lieu of making a final cash $150 K payment. A final 2 M shares payment will be due on October 30th, 2024 and under the amended terms the vendor has the option to accept the 2 M shares or $150 K cash plus 500 K shares. The final $800 K work commitment has been extended to be competed before the end of 2025.
  • Bear Creek Mining Corp. announced the appointment of Ms. Sandra Daycock Ms. Susan Toews as directors of the company, and Mr. Brian Peer to the position of Chief Operating Officer (Mercedes, Sonora).
  • Gold Resource Corp. presented a review of strategic alternatives. “Notwithstanding the technical successes …… in light of the continued challenges facing the Company, the Company’s Board of Directors has decided to initiate a formal review process, with the assistance of outside financial and legal advisors, to evaluate strategic alternatives for the Company. The comprehensive process will begin immediately and will evaluate a broad range of options to maximize shareholder value, including a potential sale of the Company”.
  • Minaurum Gold Inc. announced the appointment of Dr. Ruben Padilla, PhD to the board of directors (Alamos Silver, Sonora).
  • Osisko Development Corp. presented its third quarter 2023 report, with a few lines on the San Antonio project in Sonora. The company produced 13,591 Oz Au from the San Antonio heap leach since commencing processing of stockpiled inventory in Q1 2022. During Q3 production from the remaining stockpile inventory was completed, with no further production envisaged. “The Company awaits next steps from the government of Mexico with respect to the permitting process”.

ON SOCIAL RESPONSIBILITY

  • Argonaut Gold Inc. released its 2022 Environmental, Social, and Governance (ESG) Report and ESG strategy. For the first time released detailed energy and climate, water management, and biodiversity, with a water recycling rate of 91% on all its mines. Company-wide the Lost Time Injury Rate was lowered from 0.32 in 2021 to 0.07 in 2022. Zero operational disruptions due to labor or community issues.
  • Silver Crest Metals Inc. signed “a collaboration agreement with Comisión Estatal del Agua (CEA) and the municipality of Arizpe to work on agriculture infrastructure, sewage system and water concessions for agricultural use for the local communities”.
  • Avino Silver & Gold Mines Ltd. currently holds “448 direct jobs at the mine, which has increased substantially since the restart of operations in 2021, which typically translates to 3 times the number of indirect jobs for services, consultants and suppliers in the surrounding communities and the Durango area”.  

On the image below: Geologist Julio Carcamo in a Sonoran Desert project. Picture by Jorge Cirett.

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

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Fault plane showing slickensides

By Miguel A Heredia

During the 44th week of the year (October 30th to November 5th, 2023), at least 26 press releases were announced by companies working in Mexico, and 1 news published by the media, with nine reporting resources and developments of their properties, five disclosing deals and corporate issues, four communicating production results, three, announcing financing issues, three informing on exploration results, two commenting on Mexican issues, and one discussing social issues. ON MEXICO ISSUES, The Tax Administration Service (SAT) has collected MXP $65,981M (about USD $3,665M) in this six-year term from the mining companies. Regency Silver reported their best drilling intercepts in Mexico on the first week of November, 2023. ON EXPLORATION, In Sonora, Aztec commenced a RC drilling program at its Cervantes project. In Chihuahua, Kingsmen reported results from its ongoing surface sampling program in the southeast part of the Las Coloradas project. Durango, Silver Wolf received the exploration diamond drilling permit for its Ana Maria project. ON MINING, Americas Gold and Silver reported Q3, 2023 production results from its Cosala Mine Complex, Sinaloa. Avino announced that it will be reporting Q3, 2023 production and financial results from its Avino Mine, Durango on November 8, 2023. Sierra Metals also notified that it will be presenting Q3, 2023 results from its Bolivar Mine in Chihuahua on November 13, 2023. First Majestic reported Q3, 2023 production and financial results from their Mexican operations. ON FINANCING Minera Alamos signed definitive documentation for its Cerro de Oro construction financing package for up to USD $25M. Silver Bull announced non-brokered private placement for gross proceeds of CAD $1,285,350 (Sierra Mojada project, Coahuila). First Majestic declared a cash dividend payment in the amount of $0.0046 per common share for the third quarter of 2023.Minaurum closed a non-brokered private placement for gross proceeds of CAD $800,250 (Alamos Silver project, Sonora). ON RESOURCES AND DEVELOPMENT, Atacama Copper and TCP1 announced a maiden resource estimate for theirs Cristina and Yécora projects located in Chihuahua and Sonora respectively. Torex provided a Q3, 2023 update on its Media Luna project, Guerrero. Silver Tiger filed a technical report to announce an updated mineral resource estimate at its El Tigre project, Sonora.  Silver Tiger announced a Preliminary Economic Assessment (PEA) on its El Tigre project, Sonora. Golden Tag released first results from its drill program at its La Parrilla Mine, Durango. Regency Silver announced results from hole REG-23-21 collared at its Dios Padre project, Sonora. Sierra Madre presented its first project-wide resource estimate for its La Guitarra Mine, State of Mexico. Guanajuato Silver filed a National Instrument 43-101 Technical Report for a new Mineral Resource Estimate (MRE) for its San Ignacio Mine, Guanajuato. ON DEALS AND CORPORATE ISSUES, Fortuna Silver reported that the Mexican Federal Administrative Court has ruled in favour of Minera Cuzcatlan, Fortuna’s Mexican subsidiary, and re-instated the 12-year environmental impact authorization (EIA) for the San Jose Mine, Oaxaca. Monumental Minerals announced the resignation of its CEO, effective October 30, 2023 (Jemi rare Earth Element project, Coahuila).  Golden Tag announced name change to Silver Storm Mining Ltd, being approved later on by shareholders, its Board of Directors and the Toronto Stock Exchange (TSX) (La Parrilla Mine, Durango).  Sonoran Desert filed documents with the TSX seeking approval for consolidation of common shares (Cuatro Hermanos project, Sonora).  ON SOCIAL RESPONSIBILITY, Fernando Alanís, general director of Baluarte Minero, a unit within Industrias Peñoles, the world’s largest producer of refined silver, stated that the investment funds prioritize the ESG criteria of mining companies, because their implementation creates certainty.

ON MEXICO ISSUE

  • The Tax Administration Service (SAT) has collected MXP $65,981M (about USD $3,665M) in this six-year term from the mining companies. It is 11 times more than with the former government. The Tax Administration Service has explained that the MXP $65,981M is the result of the 2023 Master Plan and 307 audits completed.
  • Regency Silver Corp., reported their best drilling intercepts in Mexico on the first week of November, 2023. Details are shown in the table below:

ON EXPLORATION

  • Aztec Minerals Corp., commenced a RC drilling program at its Cervantes project in Sonora. “The drill program has been optimized to focus on expanding the California zone oxide mineralization, which remains open laterally in every direction, with a minimum 11 holes and 1,600m RC drilling in this current stage of exploration”.
  • Kingsmen Resources Ltd., reported results from its ongoing surface sampling program of old workings along the Soledad and Soledad II structures and their subsidiary structures in the southeast part of the Las Coloradas project, in Chihuahua. Twenty samples were collected with one returning > 400 g/t Ag; one returning > 300 g/t Ag; one returning >200 g/t Ag; and one returning > 100 g/t Ag. Three areas with high grade have been identified. Prospecting and sampling continues.
  • Silver Wolf Exploration Ltd., received from the Secretariat of Environment and Natural Resources (SEMARNAT), the exploration diamond drilling permit for the southern El Soldado claim at its Ana Maria project, Durango. The company has designed a drilling program for up to 4,800m over 16 holes.

ON MINING

  • Americas Gold and Silver Corporation reported Q3, 2023 production results from its Cosala Mine Complex, Sinaloa. The company produced 178K Oz Ag, 2.8M Lb Pb, and 9M Lb Zn.
  • Avino Silver and Gold Mines Ltd., announced that it will be reporting Q3, 2023 production and financial results from its Avino Mine, Durango on November 8, 2023.
  • Sierra Metals Inc., also notified that it will be presenting Q3, 2023 results from its Bolivar Mine in Chihuahua on November 13, 2023.
  • First Majestic Silver Corp., reported Q3, 2023 production and financial results from their Mexican operations. Table below shows results by mine:

ON FINANCING

  • Minera Alamos Inc., signed definitive documentation for its Cerro de Oro construction financing package for up to USD $25M with Auramet International Inc., and Auramet Capital Partners LP  which is comprised of a loan facility for up to USD $15M and a USD $10M royalty. Upon execution of the Cerro de Oro Financing Documents, the company also completed a drawdown of an initial USD $5M under the loan facility to advance certain pre-construction work related to the Cerro de Oro project, Zacatecas.
  • Silver Bull Resources Inc., announced non-brokered private placement issuing a fully subscribed 11,685,000 units at a price of CADS $0.11 per unit for gross proceeds of CAD $1,285,350. Gross proceeds will be used for general working capital and corporate purposes, including investigation and potential acquisition of additional exploration projects (Sierra Mojada project, Coahuila).
  • First Majestic Silver Corp., declared a cash dividend payment in the amount of $0.0046 per common share for the third quarter of 2023. The third quarter cash dividend will be paid to holders of record of First Majestic’s common shares as of the close of business on November 15, 2023, and will be distributed on or about November 30, 2023.
  • Minaurum Gold Inc., closed a non-brokered private placement for gross proceeds of CAD $800,250. The company will use the net proceeds for exploration of the Alamos Silver project, Sonora, and for general working capital purposes.

ON RESOURCES AND DEVELOPMENT

  • Atacama Copper Corporation and TCP1 Corporation announced a maiden resource estimate for theirs Cristina and Yécora projects located in Chihuahua and Sonora respectively. At Cristina project, Chihuahua, the companies estimated indicated resources of 17.5M tonnes of 0.51g/t Au, 34 g/t Ag, 0.5% Zn, 0.2% Pb, and 0.04% Cu (1.33 g/t AuEq) for a contained 752K Oz AuEq, and Inferred resources of 19M tonnes of 0.51 g/t Au, 27 g(/t Ag, 0.5% Zn, 0.2% Pb, and 0.05% Cu (1.27 g/t AuEq) for a contained 777K Oz AuEq.  The resource estimate is based on 220 diamond drill holes completed between 2010 and 2022 for approximately 70,000 m of drilling in total. Preliminary metallurgical test work suggests recoveries into concentrate of 75-85% for gold, 85-95% for silver, 80-90% for zinc and lead, and 70-80% for Cu. At Yécora project, Sonora, the companies estimated indicated resources of 25M tonnes of 0.30% Cu, 28 g/t Ag, and 749ppm Mo (0.79% CuEq9 for a contained 444M Lb CuEq, and inferred resources of 11.2M tonnes of 0.30% Cu, 24 g/t Ag, and 831 ppm Mo (0.78% CuEq for a contained 193M Lb CuEq. The resource estimate is based on 34 diamond drill holes and 8 reverse circulation drill holes completed between 2014 and 2022 for 14,006 m of drilling in total. Preliminary metallurgical test work projected a copper concentrate grade of 20-25% with a recovery of approximately 90% and containing 75 to 85% of the silver. The molybdenum concentrate grade was projected to be 50-55% with a recovery of 80 to 90%. Future testing will determine the feasibility of recovering lead and zinc to a separate concentrate, and thus zinc and lead were not included in the current resource estimate.
  • Torex Gold Resources Inc., provided a Q3, 2023 update on its Media Luna project, Guerrero. “Development of Media Luna continues to track well to plan, with first concentrate production remaining on track for late 2024 and commercial production in early 2025. At quarter-end, the Media Luna Project was 49% complete across engineering, procurement, underground development/construction, and surface construction. With 68% of upfront expenditures committed (including 42% incurred), expenditures to date have tracked reasonably well to the initial budget of $875 million, noting the stronger Mexican peso remains a headwind to manage. With $242 million incurred on the project year-to-date, project spending in 2023 is tracking toward the lower end of the annual guided range of $390 million to $440 million. Solid progress was made with respect to underground development and construction, which included another notable quarter of advance in the schedule-critical Guajes Tunnel and mobilization of the underground construction contractor. Breakthrough of the Guajes Tunnel is expected by year-end, three months ahead of schedule.  Significant progress was also made on the engineering front, which is expected to drive increased procurement activity through year-end. Surface construction continued with pad and foundation preparation for several key areas advanced during the quarter. The pace of construction is set to pick up in Q4 as concrete works ramp up, larger equipment deliveries to the south side commence with the completion of the Mazapa bypass road, and steel erection at the flotation plant begins before year-end.  The Media Luna Project is now soundly at the halfway mark and tracking to schedule and budget. With solid ongoing cash flow from El Limón Guajes and a healthy balance sheet with strong liquidity, we remain well positioned to execute on the remainder of the development plan over the next 15 months.”
  • Silver Tiger Metals Inc., filed a technical report to announce an updated mineral resource estimate (MRE) at its El Tigre project, Sonora. Table below shows the updated MRE for El Tigre project, Sonora:

In addition to the exploration work completed at El Tigre project, an exploration target was established as follows: 7 to 9M tonnes at 3.0 to 3.5 g/t AuEq for 675K Oz to 1M Oz AuEq.

  • Silver Tiger Metals Inc., announced a Preliminary Economic Assessment (PEA) on its El Tigre project, Sonora. Highlights of the PEA, with a base case silver price of $23.75/Oz and gold price of $1,850/Oz include an after-tax net present value (NPV) (using a discount rate of 5%) of  USD $287M with an after-tax IRR of 55.8% and payback period of 1.7 years (base case); 13-year mine life recovering a total of 60M payable AgEq or 776K Oz AuEq, consisting of 16M Oz Ag and 571K Oz Au; total project undiscounted after tax cash flow of USD $445M; initial capital costs of USD $59M, including USD $7.7M in contingency costs, over an expected 12-month build, expansion capital of USD $33M and sustaining capital costs of USD $31M over the life of mine (LOM); average LOM operating cash costs of USD $803/Oz AuEq, and all in sustaining costs (AISC) of USD $843/Oz AuEq or average LOM operating cash costs of USD $10/Oz AgEq, and AISC of USD $11/Oz AgEq; and average annual production of approximately 4.6MOz AgEq or 59,000 Oz AuEq.
  • Golden Tag Resources Ltd., released first results from its diamond drilling program at its La Parrilla Mine, Durango. Drilling highlights include hole Q-23-001 with 65 g/t Ag, 0.16 g/t Au, 1.3% Pb, 3.5% Zn, and 0.05% Cu (206 g/t AgEq) over 5.20m, including 145 g/t Ag, 0.11 g/t Au, 2.4% Pb, 2.9% Zn, and 0.08% Cu (299 g/t AgEq) over 1.64m, including 51 g/t Ag, 0.39 g/t Au, 1.4% Pb, 7.6% Zn, and 0.06% Cu (328 g/t AgEq) over 1.60m; hole Q-23-003 with 125 g/t Ag, 0.25 g/t Au, 3% Pb, 5.7% Zn, and 0.08% Cu (381 g/t AgEq) over 0.88m, plus 43 g/t Ag, 0.03g/t Au, 0.8% Pb, 8.6% Zn, and 0.18% Cu (300 g/t AgEq) over 0.32, plus 90 g/t Ag, 0.3 g/t Au, 0.7% Pb, 10.3% Zn, and 0.07% Cu (414 g/t AgEq) over 0.84m; and hole Q-23-005 with 124 g/t Ag, 0.61 g/t Au, 0.6% Pb, 0.3% Zn, and 0.27% Cu (198 g/t AgEq) over 1.87m, plus 76 g/t Ag, 0.32 g/t Au, 0.3% Pb, 4.2% Zn, and 0.18% Cu (225 g/t AgEq) over 1.52m, plus 29 g/t Ag, 0.08 g/t Au, 0.1% Pb, 4.9% Zn, and 0.11% Cu (172 g/t AgEq) over 0.97m. With these drill results Golden Tag extended the C460B Zone 110m at depth in La Parrilla Mine Complex, Durango.
  • Regency Silver Corp., announced results from hole REG-23-21 collared at its Dios Padre project, Sonora. It intersected 0.61 g/t Au over 9.5m, plus 5.34 g/t Au over 54.65m, including 7.36 g/t Au over 38m, including 8.7 g/t Au over 28.9m, and plus 0.95 g/t Au over 7.9m. “The 2023 drill campaign consisted of 6105.25m in 10 holes.  8 of the 9 holes targeting the lower Dios Padre breccia zone intersected mineralized pyrite-specularite breccia and confirm the mineralized breccia zone has a strike of at least 180m and depth extent of at least 150m while the breccia remains open both along strike, up-dip towards the old silver mine, and at depth”.
  • Sierra Madre Gold and Silver Ltd., presented its first project-wide resource estimate for its La Guitarra Mine, State of Mexico. The company reported indicated resource of 3,482,000 tonnes of 146 g/t Ag and 0.96 g/t Au (220 g/t AgEq) for a total of 18,073,000 Oz Ag and 118K Oz Au (27,207,000 Oz AgEq) contained and inferred resources of 4,105,000 tonnes of 113 g/t Ag and 0.52 g/t Au (153 g/t AgEq) for a total of 14,937,000 Oz Ag and 68,000 Oz Au (20,199,000 Oz AgEq) contained.
  • Guanajuato Silver Company Ltd., filed a National Instrument 43-101 Technical Report for a new Mineral Resource Estimate (MRE) for its San Ignacio Mine, Guanajuato. Table below shows the new MRE for San Ignacio Mine, Guanajuato (Effective date September 21, 2023):

ON DEALS AND CORPORATE ISSUES

  • Fortuna Silver Mines Ltd., reported that the Mexican Federal Administrative Court has ruled in favour of Minera Cuzcatlan, Fortuna’s Mexican subsidiary, and re-instated the 12-year environmental impact authorization (EIA) for the San Jose Mine, Oaxaca. “The San Jose Mine is in full compliance with all material environmental laws and continues to operate under the terms of the EIA. The decision of the Court is subject to appeal by the Secretaria de Medio Ambiente y Recursos Naturales (SEMARNAT), and if appealed, the permanent injunction that the company already has will remain in effect”.
  • Monumental Minerals Corp., announced the resignation of its CEO, effective October 30, 2023 (Jemi rare Earth Element project, Coahuila).
  • Golden Tag Resources Ltd., announced name change to Silver Storm Mining Ltd, being approved later on by shareholders, its Board of Directors and the Toronto Stock Exchange (TSX). the Company’s shares will commence trading on the TSXV, the OTCQB Exchange, and Frankfurt Stock Exchange under Silver Storm Mining Ltd. effective at the opening of trading on or about November 7,2023, and will trade on the TSXV under the new symbol (TSXV: SVRS) on the OTCQB under the symbol (OTCQB: SVRSF) and on the FSE under the symbol (FSE: SVR) (La Parrilla Mine, Durango).
  • Sonoran Desert Copper Corporation filed documents with the TSX seeking approval for consolidation of the outstanding common shares of the company, on the basis of one post-consolidation common share for every four pre-consolidation common shares. The common shares will continue trading on the TSX Venture Exchange on a post-consolidation basis under the name Sonoran Desert Copper Corporation and the trading symbol SDCU (Cuatro Hermanos project, Sonora).

ON SOCIAL RESPONSIBILITY

  • Fernando Alanís, general director of Baluarte Minero, a unit within Industrias Peñoles, the world’s largest producer of refined silver, stated that the investment funds prioritize the ESG criteria of mining companies, because their implementation creates certainty. He gave three examples of this: the payment of taxes, the accident rate and development in mining communities. More and more investors and financial institutions are using ESG or sustainability scores, ratings and benchmarking studies provided by various organizations that evaluate corporate performance and governance related to environmental and social issues, including climate change, when making their financing and voting decisions.

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, a fault plane showing slickensides in an epithermal vein system in a prospect in Chihuahua, Mexico. Photo by Miguel A Heredia.

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

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Cu mineralization in a Carbonate Replacement Deposit

By Miguel A Heredia

During the 42nd week of the year (October 16th to October 22nd, 2023), at least 27 press releases were announced by companies working in Mexico, and 1 news published by the media, with eight communicating production results, five informing on exploration results, five reporting resources and developments of their properties, four disclosing deals and corporate issues, three commenting on Mexican issues, two announcing financing issues, and one discussing social issues. ON MEXICO ISSUES, Newmont announced end of strike at its Peñasquito Mine in Zacatecas. Almaden reported on two recent court decisions, both relating to the submission issued by Mexico´s Ministry of Economy to the second district court in Puebla (Ixtaca project, Puebla). Prismo, Endeavour, and Kootenay reported the best drilling intercepts in Mexico on the third week of October, 2023. ON EXPLORATION, In Sonora, Aztec Minerals selected drill contractor and mobilized exploration crews to conduct an upcoming RC drilling program at its Cervantes project, Prismo reported results of the first holes ever drilled at its Los Pavitos project, Tocvan released first pass reconnaissance results from its Pilar expansion area, and Colibri provided an update on its exploration activities at their Pilar, EP, and Diamante projects. In Chihuahua, Kootenay announced results from its ongoing drilling program at its Columba project. ON MINING, Orla reported Q3, 2023 production results from its Camino Rojo project in Zacatecas. Equinox announced that it will present its Q3, 2023 financial and operating results on October 31, 2023 (Los Filos Mine, Guerrero). GoGold reported Q3, 2023 production results from its Parral Tailings project in Chihuahua and provided an update on its Parral Zn circuit. Santacruz reported Q3, 2023 production results from its Zimapan Mine in Hidalgo. Avino reported Q3, 2023 production results from its Avino Mine in Durango. Sierra Metals reported Q3, 2023 production results from their Bolivar and Cusi Mines in Chihuahua. Bear Creek reported Q3, 2023 production results from its Mercedes Mine in Sonora. ON FINANCING Sierra Madre announced the amendment of all 5,123,092 subscription receipts, in order to extend the escrow release conditions and termination (as both terms are defined in the May 31 and Sep 14 News Releases) for an additional 30-day period (La Guitarra Mine Complex, Estado de Mexico State). Bear Creek announced the issuance of promissory note to Equinox (Mercedes Mine, Sonora).  ON RESOURCES AND DEVELOPMENT, Sonoro filed a NI 43-101 technical report for a Preliminary Economic Assessment (PEA) on its Cerro Caliche project in Sonora.  Gold Resource announced preliminary Q3, 2023 production results from its Don David Gold Mine in Oaxaca. Sierra Madre announced that it has engaged Stantec Consulting International LLC to examine tailings deposition options at its La Guitarra Mine Complex in Estado de Mexico State. Endeavour released positive drill results from its ongoing drilling program being conducted at El Curso and Porvenir Dos Areas at its Guanacevi project in Durango. Oroco filed a Preliminary Economic Assessment (PEA) and updated Mineral Resource Estimate (MRE) for the North and South Zones of its Santo Tomas project in Sinaloa. Gatos Silver announced filing of updated technical report on its Cerro Los Gatos Mine, Chihuahua.  ON DEALS AND CORPORATE ISSUES, Goldgroup exercised its option to purchase all of the issued and outstanding common shares of Minera Cerro Esperanza S.A de C.V., which owns the Company’s previously held Cerro Prieto mining concessions, in Sonora. Vortex announced the attendance at the 121 Mining Investment Conference in New York (Riqueza Marina project, Oaxaca). Tocvan completed a definitive agreement with a private owner to acquire 100% interest in 2,172.7 hectares adjacent to Pilar project in Sonora. Silver Viper amended the terms of its option to acquire 100% ownership of three mineral concessions totaling 2,102 hectares at the La Virginia project, Sonora.   ON SOCIAL RESPONSIBILITY, Minera Media Luna, a subsidiary of Torex Gold Resources Inc, renewed the agreement of the Avanzando Juntos scholarship program with 60 young people, 33 of whom are pursuing their high school studies and 27 plus a bachelor’s degree.

ON MEXICO ISSUE

  • Newmont Corporation announced end of strike at its Peñasquito Mine in Zacatecas, and now is focused on a safe return-to-work plan and a quick ramp up of operations while strengthening workforce relationships. On October 13, 2023, Newmont and the Union submitted the Agreement to the Mexican Labor Court, which gave its approval, thus ending the strike. “In 2022, Peñasquito contributed USD $1.9 B in economic value to Mexico, including USD $643M in employee wages and benefits, taxes, and royalty payments to federal, state, and local governments, and investments in community infrastructure and water projects. Minera Peñasquito is the second largest employer in Zacatecas, Mexico with a workforce of more than 5,000 individuals. The mine supports another 28,000 people and their families, in neighboring communities and across the country, who are part of the mine’s local and national supply chain”.
  • Almaden Minerals Ltd., reported on two recent court decisions, both relating to the submission issued by Mexico´s Ministry of Economy to the second district court in Puebla. “As reported on February 22, April 13, and September 14, 2023, Economia made the Submission to the District Court seeking to deny the two mineral title applications which were first made by Almaden in 2002 and 2008. The Submission claims that the applications contain technical faults, despite Economia’s previous statements to the contrary and its acceptance of the mineral title applications and grant of the mineral titles in 2003 and 2009. By alleging technical faults in the mineral title applications, Economia appears to be arbitrarily seeking to deny the grant of the mineral titles and avoid the indigenous consultation ordered by the February 2022 decision of Mexico’s Supreme Court (SCJN). Such consultation would be welcomed by both the Company and surrounding community members. The two court decisions reported today are summarized as follow: The Federal Appeals court (TCC) dismisses all of the appeals filed by the Parties, including those of the  Company and supporting community members, and rules the Submission is compliant with the 2022 decision of the SCJN, since the SCJN decision did not formally prevent Economia from reviewing the technical aspects of the mineral title applications; The TCC ruling also does not address the validity of the Submission and therefore safeguards the Company’s right to challenge the substance and legality of the Submission through the Mexican Federal Administrative Court (TFJA);  As follow-up to the press release of September 14, 2023, the TFJA has now granted a definitive injunction in relation to the Submission, which prevents Economia from releasing the mineral rights covered by Almaden’s mineral title applications to third parties while the trial continues, anticipated to last 18 months”. (Ixtaca project, Puebla).
  • Prismo Metals Inc., Endeavour Silver Corp., and Kootenay Silver Inc., reported the best drilling intercepts in Mexico on the third week of October, 2023. Details are shown in the table below:

ON EXPLORATION

  • Aztec Minerals Corp., selected drill contractor and mobilized exploration crews to conduct an upcoming RC drilling program at its Cervantes project. This RC drilling program is planned to be conducted at Q4, 2023 in two stages and is permitted for a total of 4,200m in 28 holes. Second stage will be designed subject to results of the initial stage RC drilling program.
  • Prismo Metals Inc., reported results of the first holes ever drilled at its Los Pavitos project. It reported that four of the first eight holes at Santa Cruz target encountered high grade gold mineralization. Drilling highlights include hole LP-SC-01 (true widths reported) with 2.34 g/t Au, 15 g/t Ag, 0.08% Cu, 0.2% Pb, and 0.7% Zn over 5.2m, including 7.04 g/t Au, 43 g/t Ag, 0.19% Cu, 0.6% Pb, and 2.3% Zn over 1.4m; hole LP-SC.02 with 0.27 g/t Au, 0.5 g/t Ag, 0.01% Cu, 0% Pb, and 0.01% Zn over 1.2m, plus 5.77 g/t Au, 29 g/t Ag, 0.15% Cu, 0.2% Pb, and 0.4% Zn over 6m, including 10.22 g/t Au, 47 g/t Ag, 0.17% Cu, 0.3% Pb, and 0.6% Zn over 3.3m; hole LP-SC-07 with 1.52 g/t Au, 19 g/t Ag, 0.11% Cu, 0.1% Pb, and 0.06% Zn over 8.3m, including 2.52 g/t Au, 29 g/t Ag, 0.15% Cu, 0.1% Pb, and 0.1% Zn over 4.8m; and hole LP-SC-08 with 3.78 g/t Au, 19 g/t Ag, 0.19% Cu, 0.1% Pb, and 0.2% Zn over 7m, including 5.33 g/t Au, 27 g/t Ag, 0.27% Cu, 0.1% Pb, and 0.3% Zn over 4.5m. Prismo has delineated with mapping and sampling in the last year other targets in the property such as Las Auras, Oromuri, and Española. The company has plans to drill-test these other targets as well as to continue exploring the property to develop additional new areas for drilling in several areas identified during reconnaissance work.
  • Tocvan Ventures Corp., released first pass reconnaissance results from its Pilar expansion area. Samples were collected 4.5km from the Pilar main Zone and returned high grade gold and silver values “associated with intense hydrothermal altered volcanic rocks on the newly acquired expansion area. Highlights include 5.60 g/t Au and 106 g/t Ag; 3.54 g/t Au and 645 g/t Ag; and 1.84 g/t Au and 177 g/t Ag. “The extent of the alteration in the area of the samples spans for over 3.3km of strike and over a 1.5km width as defined by satélite Aster data”.
  • Kootenay Silver Inc., announced results from its ongoing drilling program at its Columba project in Chihuahua.  The current program comprises a 12 to 15 hole campaign for a total of approximately 3,000m designed to extend known mineralization on the “D-Vein” target 0.06% Pb, and area at Columba. Drilling highlights include hole CDH-23-138 with 599 g/t Ag, 0.5% Pb, and 1.2% Zn over 13.56m, including 858 g/t Ag, 0.8% Pb, and 1.9% Zn over 8m, including 2,060 g/t Ag, 3.2% Pb, and 4.3% Zn over 1m; hole CDH-23-137 with 118 g/t Ag, 0.03% Pb, and 0.09% Zn over 29.20m, including 190 g/t Ag, 0.04% Pb, and 0.2% Zn over 11.20m, or 864 g/t Ag, 0.2% Pb, and 0.08% Zn over 1m, or 340 g/t Ag, 0.06% Pb, and 1.2% Zn over 4m; and hole CDH-23-136 with 203 g/t Ag, 0.03% Pb, and 0.09% Zn over 4.97m, including 335 g/t Ag, 0.03% Pb, and 0.08% Zn over 2.97m. “The first 12 holes of the current program are designed to extend the D-Vein in preparation of a follow up program aimed to result in a maiden resource in late 2024. In addition to the D Vein, the Company maintains a priority list of new vein targets and known vein extensions all warranting drill testing”.
  • Colibri Resource Corporation provided an update on its exploration activities at their Pilar, EP, and Diamante projects in Sonora. At Pilar project, Colibri received the notice from Tocvan Ventures Corp., that it has met all conditions set forth in its 2019 option agreement with Colibri to earn an initial 51% of its advanced exploration stage Pilar Gold & Silver Project. Under the terms of the agreement, Tocvan has until March18th, 2024 to purchase the remaining 49% of Pilar from Colibri by paying an additional CAD $2M in cash and issuing a 2% net smelter on the project to Colibri. Tocvan would maintain an option to buy back 1% of the royalty for CAD $1M. At EP project, Colibri recently completed 1 2,200m and consolidated land position consisting of Colibri’s long held Evelyn Gold Project and the contiguous Plomo Gold Project. At Diamante project, the company is currently completing a geological mapping and sampling program, taking a property-wide approach as well as a more detailed evaluation of selected showings. Sampling includes outcrop sampling as well as property-wide stream sediment sampling. The Company anticipates initiating a drill program at Diamante before the end of the calendar year.

ON MINING

  • Orla Mining Ltd., reported Q3, 2023 production results from its Camino Rojo project in Zacatecas. The company mined 1,840,224 tonnes of 0.81 g/t Au, processed 1,716,819 tonnes of 0.85 g/t Au, and stockpiled 123,404 tonnes of low grade of 0.28 g/t Au, to produce 32,425 Oz Au, of which 31,060 were sold.
  • Gold Resource Corporation announced preliminary Q3, 2023 production results from its Don David Gold Mine in Oaxaca. The company milled 128,884 tonnes (129,099 combined) of 2.63 g/t Au, 64 g/t Ag,0.32% Cu, 2% Pb, and 4% Zn to produce 3,982 Oz Au, 208.9K Oz Ag, 548.8K Lb Cu, 2.12M Lb Pb, and 5.76 M Lb Zn at realized prices of USD $1,934 per Oz Au, USD $24 per Oz Ag, USDS $8,185 per tonne of Cu, USD $2,196 per tonne of Pb, and USD $2,195 per tonne of Zn.
  • Equinox Gold Corp., announced that it will present its Q3, 2023 financial and operating results on October 31, 2023 (Los Filos Mine, Guerrero).
  • GoGold Resources Inc., reported Q3, 2023 production results from its Parral Tailings project in Chihuahua and provided an update on its Parral Zn circuit. The company produced during the quarter 169.4K Oz Ag, 1,106 Oz Au and 257.6K Lb Cu (300.8K Oz AgEq). The company also reported that the construction of a zinc circuit, in addition to the SART plant at Parral, is well underway and projected to be completed by the end of this year, with the project on budget and on schedule.
  • Santacruz Silver Mining Ltd., announced Q3, 2023 production results from its Zimapan Mine in Hidalgo. The company milled 192,158 tonnes of 80 g/t Ag, 1% Pb, 2.5% Zn, and 0.29% Cu with metallurgical recoveries of 76%, 82%,18%, and 46% respectively, to produce 378.7K Oz Ag, 3.42M Lb Pb, 8.36M Lb Zn, and 564.5K Lb Cu.
  • Avino Silver & Gold Mine Ltd., reported Q3, 2023 production results from its Avino Mine in Durango. The company milled 154,507 tonnes of 56 g/t Ag, 0.58 g/t Au, and 0.42% Cu with metallurgical recoveries of 86%, 72%, and 80% respectively to produce 237.2K Oz Ag, 2,077 Oz Au, and 1.14M Lb Cu (591.2K Oz AgEq).
  • Sierra Metals Inc., announced Q3, 2023 production results from their Bolivar and Cusi Mines in Chihuahua. At Bolivar Mine, the company processed 362,890 tonnes of 0.77% Cu, 15 g/t Ag, and 0.37 g/t Au with metallurgical recoveries of 92.1%, 81.95%, and 69.58% respectively to produce 5.67M Lb Cu, 148K Oz Ag, and 2,965 Oz Au (8.1M Lb CuEq). At Cusi Mine, Sierra Metals processed 29,050 tonnes of 127 g/t Ag, 0.15 g/t Au, and 0.45% Pb with metallurgical recoveries of 83.94%, 58.5%, and 87.83% respectively, to produce 99K Oz Ag, 81 Oz Au, and 251K Lb Pb (117K Oz AgEq).
  • Bear Creek Mining Corporation reported Q3, 2023 production results from its Mercedes Mine in Sonora. The company mined 123,505 tonnes and processed 125,208 tonnes of 2.42 g/t Au with a metallurgical recovery of 94.03%, to produce 9,158 Oz Au and 34,929 Oz Ag, of which 6,298 Oz Au were sold and 2,720 Oz Au were streamed. Bear Creek also provided gold production guidance for 2023 to 39,000-45,000 Oz Au.

ON FINANCING

  • Sierra Madre Gold and Silver Ltd., announced the amendment of all 5,123,092 subscription receipts, in order to extend the escrow release conditions and termination (as both terms are defined in the May 31 and Sep 14 News Releases) for an additional 30-day period (La Guitarra Mine Complex, Estado de Mexico State).
  • Bear Creek Mining Corporation announced the issuance of a secured convertible promissory note in the amount of USD $26,632,458 to defer a USD $25M current liability originally payable to a wholly-owned subsidiary of Equinox Gold Corp., Commencing on November 30, 2023, the company will make monthly interest payments in the amount of USD $155,356 to Equinox Gold with the balance of the principal and accrued interest payable in full on the Maturity Date (Mercedes Mine, Sonora).

ON RESOURCES AND DEVELOPMENT

  • Sonoro Gold Corp., filed a NI 43-101 technical report for a Preliminary Economic Assessment (PEA) on its Cerro Caliche project in Sonora, with an effective day of August 28, 2023. PEA highlights include: pre-tax net present value discounted at 5% (NPV5) of USD $71.4M; pre-tax internal rate of return (IRR) of 59%; after-tax NPV5 of USD $47.7M with an IRR of 45%; gold recovery of 72% and silver recovery of 27%; 9 year life of mine (LOM) with 297,575 Oz AuEq;  LOM annual average production of 33K Oz AuEq at 0.45 g/t AuEq; initial CAPEX costs of USD $15.5M, including USD $1.83M in contingency; sustaining capital costs of USD $15.5M; cash operating cost of USD $1,295 per Oz AuEq; all included sustaining cost (AISC) of USD $1,395 per Oz AuEq; and a payback period of 2.9 years.
  • Sierra Madre Gold and Silver Ltd., announced that it has engaged Stantec Consulting International LLC to examine tailings deposition options at its La Guitarra Mine Complex in Estado de Mexico State. Results are expected towards the end of Q4, 2023.
  • Endeavour Silver Corp., released positive drill results from its ongoing drilling program being conducted at El Curso and Porvenir Dos Areas at its Guanacevi project in Durango. Drilling highlights (true widths reported) at El Curso Area include holes UCM-117 with 1.09 g/t Au and 384 g/t Ag (471 g/t AgEq) over 5.64m, including 4.73 g/t Au and 1,730 g/t Ag (2,076 g/t AgEq) over 0.37m; hole UCM-120 with 3.43 g/t Au and 1,265 g/t Ag (1,540 g/t AgEq) over 2.20m, including 14.35 g/t Au and 2,780 g/t Ag (3,944 g/t AgEq) over 0.21m; hole UCM-123 with 1.4 g/t Au and 265 g/t Ag (378 g/t AgEq) over 3.2m; and hole UCM-125 with 2.77 g/t Au and 859 g/t Ag (1,080 g/t AgEq) over 3.42m, including 8.22 g/t Au and 2,610 g/t Ag (3,268 g/t AgEq) over 0.64m. Within the El Curso concessions, 18 new holes have been completed totaling 3,162 metres. Drilling highlights (true widths reported) at Porvenir Dos Area include holes APD-13 with 1.08 g/t Au and 657 g/t Ag (743 g/t AgEq) over 3.47m, including 3.24 g/t Au and 4,090 g/t Ag (4,349 g/t AgEq) over 0.20m: and hole APD-23 with 1.15 g/t Au and 414 g/t Ag (506 g/t AgEq) over 2.77m, including 3.45 g/t Au and 1,170 g/t Ag (1,446 g/t AgEq) over 0.45m. Near Porvenir Dos, on the Alondra concessions, 19 new holes have been completed totalling 5,854 metres. “Endeavour plans to continue drilling towards the northwest to test continuity with the objective to access ore from development advancing between the El Curso and Porvenir Dos areas that would eventually be connected”.
  • Oroco Resource Corporation filed a Preliminary Economic Assessment (PEA) and updated Mineral Resource Estimate (MRE) for the North and South Zones of its Santo Tomas project in Sinaloa. Highlights of the PEA include a USD $2.33 B pre-tax NPV (8%) and USD $1.24 B after-tax NPV (85); 23% pre-tax IRR and 17.3% after-tax IRR; total life of mine (LOM) payable copper production of 4,749 M Lb; pre-tax payback of 4.1 years and after-tax pay-back of 5 years from first concentrate production; initial cost estimated at USD $1,339.9M , sustaining and expansion capital costs estimated at USD $1,134.5M; average annual LOM C1 cash cost of USD $1.66/Lb Cu on by-product basis; and an ultimate pit design constrained resource of 338M tonnes of indicated and 460M of inferred material. The table below shows the MRE for the Santo Tomas project:

Notes:

  1. Mineral resources are not mineral reserves and do not have demonstrated economic viability.
  2. Table abbreviations include: % = percent, g/t = grams per metric tonne, Mlb = million pounds, Koz = thousand troy ounces.
  3. The mineral resources are reported at an effective cut-off grade (CoG) of 0.15% Cu.
  4. All figures are rounded to reflect the relative accuracy of the estimates. Totals in the above table may not sum or recalculate from related values in the table due to rounding of values in the table, reflecting fewer significant digits than were carried in the original calculations.
  5. The mineral resources exclude identified oxide mineralization due to a lack of confidence in recovery assumptions of oxidized tonnages at this phase of the Project.
  6. Metal assays are capped where appropriate. At the PEA level of the Project, it is the Company’s opinion that all the elements included in the copper equivalent calculation have a reasonable potential to be recovered and sold.
  7. All dollar amounts are presented in U.S. dollars.
  8. Bulk density is estimated on a block basis using specific gravity data collected on diamond drill core.
  9. Reasonable prospects of eventual economic extraction (RPEEE) are demonstrated through use of an economic pit shell based on long-term copper price of $4.00/lb, molybdenum price of $13.50/lb, a gold price of $1,700/oz, and a silver price of $22.50/oz. Metal recovery factors used in the determination of CoG and economic pit shell for Cu, Mo, Au, and Ag have been applied based on metallurgical recovery calculations based on average feed grade. A 45-degree slope angle was applied.
  10. The Huites Reservoir boundary was ignored for the purposes of mineral resource determination. This is consistent with the previous study.
  11. The economic CoG was calculated to be 0.11% Cu but for consistency with the previous study, Oroco has elected to use an effective CoG at 0.15% Cu. CoG assumptions include a copper price of $4.00/lb., mining cost of $2.27/t, processing costs of $4.23/t, G&A costs at $0.65/t, mine recovery at 98%, mean Cu recovery at 83.7%, and royalties at 1.5%, have been applied in consideration of the RPEEE.
  12. Equivalent Copper (CuEq) percent is calculated with the formula CuEq% = ((Cu grade * Cu recovery [83.7%] * Cu price) + (Mo grade * Mo recovery [59.1%] * Mo price) + (Au grade * Au recovery [58.6%] * Au price) + (Ag grade * Ag recovery [54.2%] * Ag price)) / (Cu price * Cu recovery [83.7%]). It assumed that the Santo Tomas Project would produce a conventional (flotation) copper concentrate product based on metal recoveries indicated by PEA metallurgical test work and mean Indicated Resource feed grades.
  13. Reported contained individual metals in the table above represent in-situ metal, calculated on a 100% recovery basis, except for CuEq% which applies mean recovery assumptions (see Note 12).
  • Gatos Silver Inc., announced filing of updated technical report on its Cerro Los Gatos Mine, Chihuahua.  The 2023 Technical Reports, titled “Mineral Resource and Mineral Reserve Update, Los Gatos Joint Venture, Chihuahua, Mexico” dated October 20, 2023, support the disclosure made by the Company in its September 6, 2023 press release announcing an updated Cerro Los Gatos mineral reserve, mineral resource, and life of mine plan. 

ON DEALS AND CORPORATE ISSUES

  • Goldgroup Mining Inc., exercised its option to purchase all of the issued and outstanding common shares of Minera Cerro Esperanza S.A de C.V. (MER), which owns the Company’s previously held Cerro Prieto mining concessions, in Sonora, “by a full option price of USD $1.85M in common shares of the Company and will issue 25,067,500 common shares to Calu Opportunity Fund LLP (Calu), the owner of MER and a material shareholder of the Company. As a result of the transaction, Calu will own, directly and indirectly, 55,297,000 common shares of the Company representing approximately 66.83% of the Company’s issued and outstanding share capital. The completion of the transaction is subject to final TSX approval”.
  • Vortex Metals Inc., announced the attendance at the 121 Mining Investment Conference in New York (Riqueza Marina project, Oaxaca).
  • Tocvan Ventures Corp., completed a definitive agreement with a private owner to acquire 100% interest in 2,172.7 hectares adjacent to Pilar project in Sonora by paying USD $4M in cash and the issuance of 2.5M of common shares over the 5-year term of the agreement. A total minimum work commitment of USD $1M is considered over the agreement. The title owner will retain a 2% NSR on the properties acquired. After the initial 5-year term the company can elect to extend the agreement an additional 10 years by starting advanced royalty payments or purchase full title ownership through an additional cash payment of USD $500K.
  • Silver Viper Minerals Corp., amended the terms of its option to acquire 100% ownership of three mineral concessions totaling 2,102 hectares at the La Virginia project, Sonora. “The amendment clarifies that the USD $775K (or CAD $1,042,142.50, based on a fixed exchange rate of USD$-CAD$ of 1.3447 set out in the amendment) of Shares issuable by the Company to satisfy as a portion of the final payment under the Agreement in June 2024, will be issued with a deemed price per Share equal to the higher of (i) the closing price of the Shares on the TSX Venture Exchange on June 24, 2024 or (ii) CAD $0.095. In addition, the amendment also sets out that the Company shall not issue more than 10,969,922 Shares in satisfying this portion of the consideration due to the vendors. As previously announced by the Company, in addition to such issuance of Shares, the Company will also make a cash payment of US$200,000 to the vendors. In satisfaction of the Company’s payment of the USD $1,5M (or CAD $2.01M, based on an exchange rate of USD$-CAD$ of 1.3447) of Shares due to the vendors in April 2023 under the amended Agreement, the Company confirms it issued the vendors an aggregate of 16,808,750 Shares at a deemed price per share of CAD $0.12 on April 25, 2023”.

ON SOCIAL RESPONSIBILITY

  • Minera Media Luna, a subsidiary of Torex Gold Resources Inc, renewed the agreement of the Avanzando Juntos scholarship program with 60 young people, 33 of whom are pursuing their high school studies and 27 plus a bachelor’s degree. This is the sixth consecutive year in which the company supports young students from the municipalities of Cocula and Tepecoacuilco; and the second to young people from Eduardo Neri, having MXP $441K of investment that the company grants to the students with the best averages of the January-June 2023 school semester, thus adding an annual amount of MXP $ 882K. The people benefiting from the Avanzando Juntos scholarship program are from the communities of Nuevo Balsas, Real del Limón, La Fundición, San Nicolás, Acalmantlila, Tlanipatlan, Atlixtac in the municipality of Cocula; as well as Puente Sur Balsas and Mazapa, in the municipality of Eduardo Neri; and from Tepecoacuilco to young people from the Valerio Trujano town. The company’s objective has been to reaffirm the commitment to strengthen education as a tool in the development of social and human capital, for a prosperous future.

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

On the picture above, Cu mineralization in a Carbonate Replacement Deposit (CRD) in Durango, Mexico. Photo by Miguel A Heredia.

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

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Galena-sphalerite-Ag sulfosalts in a quartz vein

By Miguel A Heredia

During the 38th week of the year (September 18th to September 24th, 2023), at least 18 press releases were announced by companies working in Mexico, and 4 news published by the media, with ten disclosing deals and corporate issues, three commenting on Mexican issues, three announcing financing issues, two reporting resources and development of their properties, two informing on exploration results, and two discussing social issues. ON MEXICO ISSUES, According to El Financiero, there has been a 69% increase in the number of suspended projects during the López Obrador administration. According to information from the US Geological Survey, there are 82 lithium deposits in 18 states of the Republic, which can represent 1.7 million tons. ON EXPLORATION, In Chihuahua, Southern Empire received permitting from the Mexico´s Ministry of Environment and Natural Resources (SEMARNAT) for 30 drill hole sites at its Centauro project.  In Zacatecas, Radius provided an update on drilling at its Tropico project.  ON MINING, no relevant news.  ON FINANCING, Equinox announced and completed a bought deal offering of convertible senior notes (Mina Los Filos, Guerrero). Excellon announced debenture restructuring to reduce the outstanding principal amount to CAD $7.5M (La Negra Mine, Queretaro). ON RESOURCES AND DEVELOPMENT, Golden Tag announced the commencement of a 7,000m drilling campaign at its La Parrilla Mine Complex in Durango. Tocvan provided an update on the acquisition of Pilar project in Sonora and outlined target areas for the next phase of drilling. Silver Valley provided a corporate update on its MexiCan lithium-potassium projects located in Zacatecas-San Luis Potosi. ON DEALS AND CORPORATE ISSUES, Luca Mining announced the appointment of its Director of Corporate Development (Tahuehueto project, Durango). Santacruz reported fatality at its Zimapan Mine, Hidalgo. GR Silver reported results from its annual general meeting of shareholders (Plomosas project, Sinaloa). Sierra Metals placed Cusi Mine in Chihuahua on care and maintenance and initiated sale process. Radius announced that it proposes to issue 500K common shares of the company to Bruce Smith (Tropico project, Zacatecas). Angel Wing announced the consolidation of its common shares (La Reyna project, Nayarit). Bear Creek announced results from its special meeting of shareholders (Mercedes Mine, Sonora). Colibri announced the retirement of its President and CEO, and its replacement (Evelyn project, Sonora). Orex announced a consolidation of its issued and outstanding common shares at a ratio of ten pre-consolidation shares to one post-consolidation share (Coneto project, Sonora). Pan American announced that it will host a conference call to discuss the company´s environmental, social, and governance efforts and development (La Colorada, Zacatecas). Silver Viper announced that it will present a live virtual corporate update hosted by Red Cloud Financial Services on September 28th, 2023 at 2:00 PM ET (La Virginia project, Sonora).  ON SOCIAL RESPONSIBILITY, MAG Silver published its second annual sustainability report (Juanicipio, Zacatecas).  Ternium completed the restoration of the Cerro Náhuatl Mine and Jala Station Closure Plan in Coquimatlán, Colima, which covers a period from 2012 to 2022 in which reforestation works and programs were implemented.

ON MEXICO ISSUE

  • According to El Financiero, the mining sector has experienced a series of obstacles set by the current administration. The number of suspended projects stood at 439 in 2018, while the current figure is 837, representing a 69% increase in the number of suspended projects during the López Obrador administration. Likewise, the Fraser Institute of Canada placed Mexico in 37th place out of 83 countries evaluated, a drop of three places compared to 2021 and 17 positions compared to 2010. The sector is worried that the USD $77.2M budget assigned to Mexican Geological Survey (SGM) for 2024 is 95.47% below the USD $1.7 B private companies invested just in exploration. “With this lack of budget for exploration, they are condemning the country and the mining sector, because mining will be halted for another six years. If the modifications to the Mining Law remain as they are, we will witness Mexico’s mining sector entering a clear decline,” said Alfredo Phillips, Vice President, Argonaut Gold, in an interview with El Financiero.  In an interview with Mexico Business News (MBN), Ramón Luna, Director General of Servicios y Proyectos Mineros de Mexico (SPM), acknowledged that SGM has talented geologists and manages the most comprehensive database in Mexico. However, the public body does not match the infrastructure of a private company. “(The reform) would either force the more than 100 exploration companies in the country to work with the SGM or make the latter the only operator. This is not feasible because it lacks the necessary infrastructure,” he added.  Similarly, Raúl García, President of College of Mining Engineers, Metallurgists and Geologists of Mexico (CIMMGM), said that we could see the first impacts of lacking exploration by 2025 and a drop in production within the next five years, if SGM does not maintain the current levels of exploration. According to data from the Secretariat of Economy (SE), in 1Q23, the total foreign direct Investment (FDI) in the mining sector amounted to USD $419M. In contrast, during the same period in 2013, this figure reached USD $2.036 B, reflecting a decline of 79.4%. During Enrique Peña Nieto’s initial five-year term, from 2012 to 2017, the country received mining FDI totaling USD $2.8 B and USD $1.9 B, respectively, representing a decrease of 32.1%. Meanwhile, during the first five years of López Obrador’s administration, covering the period from 2018 to 2023, FDI amounted to USD $1.9 B and USD $419M, marking a significant 78% decrease. However, it is important to note that data for 2023 is not fully available, which means that the percentages provided could vary.
  • According to information from the US Geological Survey, there are 82 lithium deposits in 18 states of the Republic, which can represent 1.7 million tons. A few days ago, Héctor Usla, Economist and Reporter of the El Financiero Newspaper, reported that the 2024 Expenditure Law project plans to allocate MXP $9.77M to Litio para México (LitioMx), the entity created in August 2022, for the exploration, exploitation, benefit and use of lithium found in national territory. This is an amount that allows the administrative operation of the decentralized organization, but that seems insufficient to reliably establish the total amount of probable lithium reserves and initiate exploration and production in the most promising deposits. (Note of the writer.- Are you serious?…Obviously, it would be vastly insufficient to have a budget like that reported above to carry out exploration, exploitation, etc.).

ON EXPLORATION

  • Southern Empire Resources Corp., received permitting from the Mexico´s Ministry of Environment and Natural Resources (SEMARNAT) for 30 drill hole sites at its Centauro project in Chihuahua. “The Centauro Gold Project exhibits significant potential to host “Carlin-style” and/or epithermal precious metal mineralization based on extensive brecciation, silicification and argillization of the Tertiary-age Ahuichila Formation conglomerate, a strongly coincident gold (“Au”), arsenic (“As”), antimony (“Sb”), mercury (“Hg”), thallium, silver, barium soil geochemical signature associated with a silicified mesa “cap” covering 2.5 km along the strike of the main zone, outcrops containing arsenopyrite, realgar, orpiment and stibnite, and low to non- anomalous base metal values”. 
  • Radius Gold Inc., provided an update on drilling at its Tropico project in Zacatecas. The initial hole TDD-001 plan for 300m to intersect the Tropico breccia pipe encountered difficult ground conditions and was abandoned at 56m. “The hole from 19m to 56m is intensely altered with clay, silicification, variable zones of hydrothermal breccias and repeated sets of banded silica veins with fine sulphides and stockwork veining. Banded veining had not previously been seen on the property”. “The drill rig has been stepped back from the target an additional 25m and a new hole drilled deeper under hole TDD-001, this time using large diameter PQ sized core and casing which is expected to alleviate the drilling difficulties”.

ON MINING

  • No relevant news.

ON FINANCING

  • Equinox Gold Corp., announced that it has entered into an agreement to buy, on a bought deal basis, 4.75% unsecured convertible senior notes due 2028 in an aggregate principal amount of $150M.  The company has granted the initial purchasers up to an additional $22.5M aggregate principal amount of notes. The notes will be issued at par value.  Later on, the company announced that it had closed its previously announced bought deal offering of $172.5M aggregate principal amount of 4.75% unsecured convertible senior notes due 2028, which includes exercise of the full amount of the option to purchase an additional $22.5M aggregate principal amount of notes Net proceeds will be used for repayment of debt and for general corporate purposes (Mina Los Filos, Guerrero).
  • Excellon Resources Inc., announced debenture restructuring to reduce the outstanding principal amount to CAD $7.5M representing a reduction of CAD $10.4M (58% reduction), and to amend the terms of the remaining debentures to, among other things, further extend the maturity date to August 31, 2026. In exchange for CAD $10.4M aggregate principal amount of the debentures, Excellon to pay CAD $3.5M in equity, 25% interest in Silver City Project, plus additional non-dilutive contingency and royalty payments (La Negra Mine, Queretaro).

ON RESOURCES AND DEVELOPMENT

  • Golden Tag Resources Ltd., announced the commencement of a 7,000m drilling campaign at its La Parrilla Mine Complex in Durango. The 7,000m phase 1 drilling program will  focus on infill and step-out drilling in proximity to underground mining infrastructure and existing development in three key areas: a) Rosarios and Cuerpo 340 Veins (3,000 m of drilling to test the east, west and central down-dip extensions; b) Quebradillas Underground (3,000 m of drilling to test the strike and down-dip extensions of three key zones including Cuerpo 460, Norte-Sur, and San Nicolas; and c) San Marcos (1,000 m of drilling to test the extension of San Marcos and Cuerpo 1100 at depth.
  • Tocvan Ventures Corp., provided an update on the acquisition of the Pilar project in Sonora and outlined target areas for the next phase of drilling. The company has exercised notice to Colibri Resources Corp., to purchase the remaining 49%. It also is completing a due diligence expected to finalize in coming weeks to acquire over 21 square-kilometers of land surrounding the Pilar, which contain recent placer activity, historic workings, and prospective geology, indicative that the area is highly prospective for gold and silver. “Tocvan plans to restart field operations at the close of the expansion acquisition to advance new target areas already identified quickly towards drill targeting. Drilling at Pilar and within the new expansion area is planned to total 2,000-meters before year end”.
  • Silver Valley Metals provided a corporate update on its MexiCan lithium-potassium projects located in Zacatecas-San Luis Potosi. Highlights of this project include that significant grades of lithium, potassium sulphate, and boron are located on surface in unconsolidated sediments; the brine potential has not been tested to date; deep basin large aquifer brine potential defined by regional geophysics surveys, remains to be tested; he inferred resource has been tested from surface to an average 5 metres depth; the company anticipates the sediment basin could range from 40m to greater than 100m deep, so the prospect of expanding the sediment resource at depth is substantial; and 12.3M tonnes of Potassium Sulphate and 243K tonnes of Lithium Carbonate Equivalent defined thus far. The company declared that discussions are active and advancing with LitioMX and near-term plans are in place to come together to potentially finalize a partnership agreement.

ON DEALS AND CORPORATE ISSUES

  • Luca Mining Corp., announced the appointment of its Director of Corporate Development. The company also granted incentive stock options to its employees and consultants to purchase an aggregate 225K share in the capital stock of the company (Tahuehueto project, Durango).
  • Santacruz Silver Mining Ltd., reported that an employee was fatality injured at its Zimapan Mine, Hidalgo. The fatality was the result of rockfall from a stope face.
  • GR Silver Mining Ltd., reported results from its annual general meeting of shareholders.  Incumbent director Laura Diaz chose not to stand for re-election and was not a nominee (Plomosas project, Sinaloa).
  • Sierra Metals Inc., placed Cusi Mine in Chihuahua on care and maintenance and initiated a process to sell the mine. Ernesto Balarezo Valdez, Sierra Metals’ CEO, stated that “Sierra Metals is transitioning to become a copper-focused mining company, and the planned divestiture of Cusi will allow us to focus on our two key mines, Yauricocha in Peru and Bolivar in Mexico, where we have significant potential to continue growing our copper production”.
  • Radius Gold Inc., announced that it proposes, subject to TSX Venture Exchange approval, to issue 500K common shares of the company to Bruce Smith. The common shares will be issued at a deemed price of $0.24 per share, for a total deemed value of $120K (good for you Bruce!) (Tropico project, Zacatecas).
  • Angel Wing Metals Inc., announced the consolidation of its common shares on the basis of one post- consolidation common share for every two pre-consolidation shares issued and outstanding as of the close of business on September 20, 2023. (La Reyna project, Nayarit).
  • Bear Creek Mining Corporation announced results from its special meeting of shareholders (Mercedes Mine, Sonora).
  • Colibri Resource Corporation announced the retirement of its President and CEO, and its replacement (Evelyn project, Sonora).
  • Orex Minerals Inc., announced a consolidation of its issued and outstanding common shares at a ratio of ten pre-consolidation shares to one post-consolidation share. The reasons for the consolidation are to increase the company’s flexibility and competitiveness in the marketplace and to attract new equity investment in the company  (Coneto project, Sonora).
  • Pan American Silver Corp., announced that it will host a conference call to discuss the company ´s environmental, social, and governance efforts, and development on October 19, 2023 at 11:00 am ET (8:00 am PT) (La Colorada, Zacatecas).
  • Silver Viper Minerals Corp., announced that it will present a live virtual corporate update hosted by Red Cloud Financial Services on September 28th, 2023 at 2:00 PM ET (La Virginia project, Sonora).

ON SOCIAL RESPONSIBILITY

  • MAG Silver Corp., published its second annual sustainability report. , which provides a comprehensive overview of the company’s environmental, social and governance (“ESG”) commitments, practices, and performance for the 2022 year. Highlights of the 2022 sustainability report include zero fatalities at the Juanicipio project, Zacatecas or at MAG´s exploration projects; a lost time injury frequency rate of 1.92; over 62,000 hours dedicated to safety training; zero significant environmental incidents at the Juanicipio and other projects; 66% of MAG Silver´s workforce is hired from local communities; over 13 community engagement initiatives across 4 different project streams at the Juanicipio project: health, education, capacity buildings, and microenterprise projects; 38% of Board directors are female, surpassing the 30% target established in MAG´s Diversity, Equity and Inclusion Policy; and Code of Conduct and Social Responsibility Policy refreshed and updated to specifically articulate the importance of engaging with Indigenous communities through meaningful dialogue, cooperation, and deepening of the shared-value approach to local development activities to promote sustainable and lasting economic and social benefits.
  • Ternium completed the restoration of the Cerro Náhuatl Mine and Jala Station Closure Plan in Coquimatlán, Colima, which covers a period from 2012 to 2022 in which reforestation works and programs were implemented. With this project, the forest area was increased by 88 hectares and the area was repopulated with 180 species of native fauna. It is a component of the company’s commitment to sustainability in the communities where it operates, according to a statement.

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, galena, sphalerite, and silver sulfosalts in a quartz vein from an intermediate sulphidation epithermal vein system in Sonora, Mexico Photo by Miguel A Heredia.

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

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By Jorge Cirett                                             

During the 37th week of the year (September 11th to September 17th, 2023), 21 companies working in Mexico posted news releases. Two companies reported exploration advances on their properties, and one company reported quarterly results. Six companies informed on the opening or closing of private placements, their assistance to investor conferences, the amendment of terms on subscriptions and information circulars.  Five companies presented drilling results from their properties, one presented an updated mineral resource for its property, another two presented updated PEAs and three more updated on exploration activities on their projects. One company intends to change name and one other informed on litigation advances against the federal government. ON MEXICO ISSUES, no relevant news. ON EXPLORATION, In Oaxaca, Vortex Metals updated on exploration work in Zaachila. In Zacatecas, Radius Gold commenced drilling at Tropico. ON MINING, Starcore International Mines reported results for its first quarter 2023. ON FINANCING, Colibri Resource informed on the closing of a financing round for US$687 K. Sailfish Royalty declared a quarterly dividend. Fortuna Silver and Regency Silver are to attend investor conferences. Sierra Madre Gold and Silver amended the terms of subscription receipts. Bear Creek Mining updated on the convertible promissory notes for the payment of US$25 M on the acquisition of the Mercedes mine in Sonora. ON RESOURCES AND DEVELOPMENT, Vizsla Silver reported drilling results from Panuco, in Sinaloa. Prime Mining announced expansion drilling results from Los Reyes, in Sinaloa. Silver Tiger Metals presented an updated mineral resource estimate for its El Tigre project in Sonora. GoGold Resources released the updated PEA on Los Ricos Sur project in Jalisco. Gold Resource updated on expansion and infill drilling at its Don David mine in Oaxaca. Alamos Gold released excellent drilling results from two target areas on its Mulatos property in Sonora. Sierra Madre Gold and Silver updated on exploration at recently acquired La Guitarra property in Estado de Mexico. Avino Silver & Gold Mines released results from deep drilling at Avino, in Durango. Orex Minerals informed on hyperspectral alteration studies being carried out at Coneto, in Durango. Golden Minerals filed an updated PEA for Velardeña, in Durango. ON DEALS AND CORPORATE ISSUES, Golden Tag Resources intends to change name to Silver Storm Mining. Almaden Minerals reported the Mexican Federal Administrative Court granted a provisional injunction to Almaden, on its fight to get their mining concessions back into good standing. Argonaut Gold reached an agreement with four ejidos to operate for three more years at El Castillo and San Agustín properties in Durango. ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUES

  • No Relevant News.

ON EXPLORATION

  • Radius Gold Inc. commenced drilling at its Tropico project in Zacatecas. The company envisages a 2,000 m drill program on the hot spring type sinter and breccia pipe system, targeting a “Fresnillo-style” mineralized system at depth, and near-surface bulk mineable gold mineralization on a 450 m by 250 m breccia pipe.
  • Vortex Metals Inc. completed the phase I geologic field program for the environmental study at Zaachila, in Oaxaca. “A total of 13 trenches have been excavated … across exposures of weakly metamorphosed Upper Jurassic sedimentary, volcanic and intrusive rocks where historical surface sampling identified copper mineralization. A total of 387 meters of trench have been cut yielding a total of 271 chip samples” with results pending. Copper mineralization has been observed as malachite, azurite, chalcopyrite and bornite, associated to silica-rich exhalite beds, as quartz-carbonate veinlets cutting silicified and chloritized meta-sediments and volcanics (green schist facies) and as bedded units in the metasediments. “In a few of the less oxidized exposures, sericite was widely observed”.

ON MINING

  • Starcore International Mines Ltd. reported results for its first quarter ended July 31, 2023. At the San Martín Mine in Querétaro, 57.7 K tonnes were milled, averaging 1.14 gpt Au, 14.4 gpt Ag, recovering 84.0% Au, 45.8% Ag, to produce 1,800 Oz Au, 12.3 K Oz Ag, at cash cost $2,158 per Oz AuEq. At the end of the period cash on hand was $5.7 M, and working capital $6.2 M. “Our quarterly production reflects our recent difficulties in reaching our higher-grade ore bodies or stopes….. We expect to achieve our targets over the remainder of the year as we are currently completing the development to the high-grade zones”.

ON FINANCING

  • Sailfish Royalty Corp. declared the company’s third quarterly dividend for 2023, in the amount of US$0.0125 per common share (Gavilanes, Durango).
  • Fortuna Silver Mines Inc. announced it is going to be present at the Gold Forum Americas in Colorado Springs, Colorado (USA), from September 17 to September 20, 2023 (San Jose, Oaxaca).
  • Regency Silver Corp. announced its chairman is to be present at the 2023 Kinvestor Days Virtual Conference on September 19, 2023 (Dios Padre, Sonora).
  • Colibri Resource Corp. closed a second and final tranche of its non-brokered private placement, for gross proceeds of US$200 K, which combined with the first tranche proceeds total US$687 K (Evelyn, Sonora).
  • Sierra Madre Gold and Silver Ltd. amended the terms of 5.12 M subscription receipts in order to extend the escrow release conditions and termination for an additional 30-day period (La Guitarra, Estado de México).
  • Bear Creek Mining Corp. updated on the convertible promissory note intended to be issued to defer a US$25 M current liability originally payable to a wholly-owned subsidiary of Equinox Gold Corp. and is issuing an amendment to its management information circular dated August 9, 2023. “The Company further announces that it has closed an unsecured and non-convertible demand loan (the “Loan”) from EquinoxGold in the amount of US$1.3 million, the proceeds of which will be used for working capital purposes and further optimization of the Mercedes Mine”. The amendment refers to an exemption of formal valuation requirement described on section 5.5(b) of Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (Mercedes, Sonora).

ON RESOURCES AND DEVELOPMENT

  • Vizsla Silver Corp. reported results from 13 new holes targeting the La Luisa vein on its Panuco project, in Sinaloa. Highlighted true-width intervals comprise 11.20 m @ 7.14 gpt Au, 229 gpt Ag 0.3% Pb, 1.6% Zn; 8.90 m @ 2.85 gpt Au, 61 gpt Ag, 0.1% Pb, 2.2% Zn (including 0.77 m @ 10.35 gpt Au, 98 gpt Ag, 0.4% Pb, 15.8% Zn); 7.70 m @ 1.90 gpt Au, 67 gpt Ag, 0.7% Pb, 0.3% Zn (including 0.54 m @ 12.35 gpt Au, 250 gpt Ag, 5.6% Pb, 10.4% Zn and 1.08 m @ 1.48 gpt Au, 171 gpt Ag, 1.6% Pb, 11.2% Zn); 5.00 m @ 2.49 gpt Au. 155 gpt Ag, 0.9% Pb, 4.5% Zn. 8.85 m @ 0.98 gpt Au, 67 gpt Ag, 0.1% Pb, 1.0% Zn; 1.16 m @ 1.12 gpt Au, 76 gpt Ag, 0.2% Pb, 14.9% Zn. To date Vizsla Silver has reported 33 holes from La Luisa outlining a mineralized footprint 700 m long, 400 m down dip and 3.07 m in width, averaging 175 gpt Ag, 3.40 gpt Au, 0.28 % Pb, 1.33 % Zn (or 449 gpt AgEq).
  • Prime Mining Corp. reported expansion drill results from Los Reyes project in Sinaloa. “This drilling targeted areas extending materially beyond the mineral resource envelope at the Z-T, Guadalupe and Central Zones” which are the ones with defined resources. Highlighted true width intervals comprise 20.50 m @ 3.16 gpt Au, 55 gpt Ag (including 4.0 m @ 9.71 gpt Au, 85 gpt Ag); 2.20 m @ 10.10 gpt Au, 264 gpt Ag (including 1.20 m @ 17.80 gpt Au, 437 gpt Ag); 0.95 m @ 18.20 gpt Au, 2,024 gpt Ag; 1.0 m @ 5.47 gpt Ag, 615 gpt Ag.
  • Silver Tiger Metals Inc. announced an updated Mineral Resource Estimate for its El Tigre project in Sonora. “A total of 482 drill holes (124,851 metres) and 3,160 surface and adit channel samples (6,473 metres) were used in the Mineral Resource Estimate”, which includes the South Zone In Pit, South Zone Out-of-Pit, North Zone Out-of-Pit, Vein (S & N) Total, Low Grade Stockpile and Tailings Zones. Indicated Resources comprise 46.4 M tonnes @ 0.39 gpt Au, 25 gpt Ag, 0.01% Cu, 0.03% Pb, 0.06% Zn, containing 575 K Oz Au, 37.2 M Oz Ag, 9.4 M Lb Cu, 35.5 M Lb Pb, 64.3 M Lb Zn. Inferred resources comprise 20.9 M tonnes @ 0.56 gpt Au, 78 gpt Ag, 0.04% Cu, 0.13% Pb, 0.22% Zn, containing 373 K Oz Au, 52.6 M Oz Ag, 18.1 M Lb Cu, 59.7 M Lb Pb, 103.4 M Lb Zn.
  • GoGold Resources Corp. released the updated preliminary economic assessment (PEA) and mineral resource estimate for its Los Ricos South project in Jalisco. The report foresees commodity prices of $23.75 per Oz Ag and $1,850 per Oz Au, an After-Tax (5%) net present value of US$458 M, an After-Tax IRR of 37%, and an 11-year mine life (LOM) producing 88 M Oz AgEq (47 M Oz Ag, 493 K Oz Au, 14 M Lb Cu), with initial capital costs of $148 M, expansion capital of $69 M and sustaining capital of $72 M during LOM, producing 8 M Oz AgEq per year at cash cost $8.15 per Oz AgEq and all-in sustaining costs of $9.02 per Oz AgEq. The new resource estimate envisages 11.1 M tonnes averaging 1.43 gpt Au, 151 gpt Ag, 0.11% Cu in the measured and indicated resources category and 1.4 M tonnes at 1.22 gpt Au, 120 gpt Ag, 0.28% Cu in the inferred category, containing 511 K Oz Au, 53.8 M Oz Ag, 27.3 M Lb Cu (1.26 Moz AuEq) and 54.1 K Oz Au, 5.3 M Oz Ag, 8.5 M Lb Cu (140.9 K Oz AuEq) respectively.
  • Gold Resource Corp. provided an update on expansion and infill diamond drilling on the Arista, Three sisters, Gloria and Switchback vein systems at its Don David mine in Oaxaca. Highlighted true width intervals comprise 5.63 m @ 1.87 gpt Au, 279 gpt Ag, 0.2% Cu, 0.9% Pb, 1.6% Zn; 6.49 m @ 1.33 gpt Au, 21 gpt Ag, 0.17% Cu, 0.4% Pb, 2.1% Zn; 6.13 m @ 0.32 gpt Au, 214 gpt Ag, 0.76% Cu, 4.3% Pb, 3.0% Zn; 4.87 m @ 0.09 gpt Au, 47 gpt Ag, 0.47% Cu, 1.1% Pb, 7.2% Zn; 2.49 m @ 0.96 gpt Au, 27 gpt Ag, 1.01% Cu, 1.1% Pb, 9.7% Zn; 3.46 m @ 0.24 gpt Au, 198 gpt Ag, 0.74% Cu, 0.6% Pb, 4.9% Zn; 6.33 m @ 0.14 gpt Au, 60 gpt Ag, 0.62% Cu, 0.1% Pb, 2.2% Zn; 2.62 m @ 1.93 gpt Au, 73 gpt Ag, 0.81% Cu, 1.6% Pb, 10.4% Zn; 6.56 m @ 1.06 gpt Au, 27 gpt Ag, 0.22% Cu, 0.7% Pb, 2.1% Zn; 6.49 m @ 0.11 gpt Au, 78 gpt Ag, 0.64% Cu, 1.5% Pb, 2.9% Zn. “Five underground diamond drill rigs are currently operating … more than 100 drill holes and 25,000 meters of core has been drilled year-to date in 2023…. These drill results will be incorporated into a 2023 resource estimate update”.
  • Alamos Gold Inc. released drilling results from the Puerto del Aire deposit and the Capulin target at its Mulatos property in Sonora. Puerto del Aire is a high-grade underground deposit adjacent to the Mulatos pit, not included in the mineral resources, and the Capulin target is four km east of the Mulatos pit. Highlighted true width core intervals comprise 7.05 m @ 41.46 gpt Au; 9.50 m @ 18.32 gpt Au; 9.45 m @ 13.62 gpt Au; 1.20 m @ 85.80 gpt Au; 17.60 m @ 5.58 gpt Au; 18.70 @3.30 gpt Au; 6.0 m @ 10.42 gpt Au; 15.10 m @ 3.86 gpt Au; 11.50 m @ 3.21 gpt Au; 9.45 m @ 3.84 gpt Au in Puerto del Aire, and core length intercepts of 120.85 m @ 2.73 gpt Au (including 29.05 m @ 9.31 gpt Au); 6.0 m @ 3.65 gpt Au; 8.80 m @ 0.99 gpt Au in the Capulin target. Three drill rigs are currently working on the Capulin target, two defining the limits of known mineralization and one testing along the 2 km long Capulin fault. The 2023 exploration budget has been increased to 24.5 M, including 50,000 m of drilling at Puerto del Aire and 24,000 m of drilling on several high priority targets including Refugio, Halcon West, Carricito, Bajios, and Cerro Pelon West.
  • Sierra Madre Gold and Silver Ltd. Updated on its exploration activities at the past producing La Guitarra mine in Estado de México. In February 2023 the company started a 2,000-scale geologic mapping program, delineating to date nearly 53 km of mineralized quartz veins, breccias and stockwork zones hosted in metasediments and andesites, with hundreds of old shafts, cross cuts, adits, and prospect pits having been located. “ The La Guitarra Mine is a permitted, past-producing underground mine which includes a 500 t/d processing facility that operated until mid-2018”.
  • Avino Silver & Gold Mines Ltd. released the results from four holes drilled on the deepest part of the Avino mine, in Durango. The known depth extent of the mineralization is of at least 750 m vertically, which is assessed as unusual for Mexican epithermal deposits. Highlighted true width intercepts comprise 44.40 m @ 0.21 gpt Au, 31 gpt Ag, 0.70% Cu (including 9.85 m @ 0.58 gpt Au, 42 gpt Ag, 1.10% Cu); 27.15 m @ 0.07 gpt Au, 36 gpt Ag, 0.39% Cu; 13.20 m @ 0.09 gpt Au, 59 gpt Ag, 0.47% Cu; 6.60 m @ 0.12 gpt Au, 27 gpt Ag, 0.92% Cu. “Four holes totalling 2,040 meters, were drilled below Level 17 in this drill campaign … The persistence of silver and copper grade continuity from surface down a plunge distance of over 1,100 metres with increasing copper grades supports the possibility of a deeper mineralized system which may be linked to a porphyry centre”.
  • Orex Minerals Inc. announced that hyperspectral alteration studies are now underway on the Coneto project in Durango, by JV partner Fresnillo PLC. “Both direct Corescan of selected drill core from silver and gold mineralized zones, plus a SpecTIR Survey covering district scale mapping, will be conducted. These methods aid in mineral identification through Short-Wave Infra-Red (SWIR) and Visible Near Infra-Red (VNIR) analysis”. The 4,800 hectares project displays low to intermediate sulfidation Au-Ag epithermal mineralization, with 38,613 m of drilling in 106 diamond holes.
  • Golden Minerals Co. filed an updated preliminary economic assessment (PEA) for the Velardeña property in Durango.

ON DEALS AND CORPORATE ISSUES

  • Golden Tag Resources Ltd. intends (subject to regulatory and shareholders approval) to change the company name from Golden Tag Resources Ltd. to Silver Storm Mining Inc. “(La Parrila, Durango).
  • Almaden Minerals Ltd. reported that the Mexican Federal Administrative Court granted a provisional injunction to Almaden “relating to the submission issued by Mexico’s Ministry of the Economy (“Economia”) to the district court (the “District Court”) which is overseeing the implementation of the February 2022 decision of Mexico’s Supreme Court (“SCJN”) requiring indigenous consultations prior to the granting of mineral titles to the Ixtaca project ……. It is expected that the Court will decide on the grant of a permanent injunction within the coming weeks, which if received would continue in effect until the Court has ruled on the revocation of the Economia Submission” (Ixtaca, Puebla).
  • Argonaut Gold Inc. reached an agreement with four local Ejidos to operate for three more years in the El Castillo and San Agustín properties in Durango.

ON SOCIAL RESPONSIBILITY

  • No relevant news.

On the image below: Silicified structure ridge on a project in the Sonoran Desert. Picture by Jorge Cirett.