The Mining and Exploration News in Mexico: Highlights on the First Week of December, 2021. 

Quartz vein with massive chalcopyrite

By Miguel A Heredia

During the 48th week of the year (November 29th to December 5th, 2021), at least 24 press releases were announced by companies working in Mexico, and 3 news published by the media, with seven announcing financial issues, five reporting resources and developments of their properties, five disclosing deals and corporate issues, four informing on exploration results, three commenting on Mexican issues, and three communicating production and financial results.  ON MEXICO ISSUES, AMLO reaffirmed this week his foolish and unfortunate policy of not granting more mining concessions in Mexico. President Andrés Manuel López Obrador offered to meet the request of residents of San José del Progreso and collaborators of Compañía Minera Cuzcatlán, who asked him to avoid the closure of the San José mining unit, located in that Oaxacan municipality. The current government has stopped the issuance of mining concessions and investment in Mexico. ON EXPLORATION, In Sonora, Ranchero Gold provided an update of its ongoing drilling program conducted at its Maíz Azul project. In Chihuahua, Mammoth received from SEMARNAT a permit to expand its drilling program at its Tenoriba project. In Sinaloa, Kootenay announced drill results from its Copalito project. In Durango, Silverton signed a surface agreement for its Pluton Silver-Zinc project.  ON MINING, Americas Gold and Silver announced the re-opening of its Cosalá mine operation in Sinaloa. Santacruz reported Q3, 2021 production and financial results from their Zimapan and Rosario mines in Hidalgo and San Luis Potosi respectively. Guanajuato Silver provided a production update on its El Cubo mine, Guanajuato.  ON FINANCING, Guanajuato Silver closed the first tranche of its non-brokered private placement offering of up to 16M units at a price of CAD $0.55 per unit (El Cubo mine, Guanajuato). Fabled renewed its agreement with Agora Internet to provide online advertising, marketing, and branding services and wishes to issue 519,007 common shares in respect of the settlement, and engaged Hybrid Financial to provide marketing services (Santa Maria project, Chihuahua). First Majestic announced that it will issue USD $200M aggregate principal amount of Convertible Senior Notes or USD $230M aggregate principal amount if the over-allotment option is exercised in full (San Dimas mine, Durango). Guanajuato Silver received USD $750K from the sale of 90 tonnes of bulk Ag-Au concentrate from El Cubo mine in Guanajuato, and anticipates receiving a payment of approximately USD $1.3M for the sale of approximately 175 tonnes of additional Ag-Au concentrate on or about December 3, 2021. Orogen announced initial production at the Ermitaño deposit in Sonora where the company holds a 2% net smelter return. VVC announced an arrangement with Stockhouse Publishing to assists VVC with general market outreach and investor awareness (Gloria Copper project, Chihuahua). ON RESOURCES AND DEVELOPMENT, Discovery reported a Preliminary Economic Assessment (PEA) on its Cordero project, Chihuahua. Endeavour released high grade results from its ongoing drilling program at their Guanacevi and Bolañitos mines in Durango and Guanajuato respectively. Silver Tiger reported a wide high grade drill intersection on the Benjamin Vein at its El Tigre project, Sonora. Fabled released results from hole SM0-42 collared at its Santa Maria project, Chihuahua. GR Silver announced the discovery of a gold-silver rich mineralized zone during the initial reconnaissance drilling at Loma Dorada target within its Plomosas project in Sinaloa.    ON DEALS AND CORPORATE ISSUES, Almadex announced the appointment of two members to its Board of Directors and the retirement of one Director after many years of valued service (El Chato project, Puebla). Capstone and Mantos Copper entered into a definitive agreement to combine business to create Capstone Copper (Cozamin mine, Zacatecas). Heliostar announced the appointment of a new member to its Board of Directors (Cumaro project, Sonora). Monumental Minerals announced the appointment of an advisory board to assist the company with the exploration and drill target definition of its Jemi rare earth elements project in Coahuila. ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUE

  • AMLO reaffirmed this week his foolish and unfortunate policy of not granting more mining concessions in Mexico. He declared that mining companies were speculating in the financial market. López Obrador asserted that the existing mining concessions will be respected; however, his government will no longer give more, as many companies “cheated” and have not carried out exploitation tasks.
  • President Andrés Manuel López Obrador offered to meet the request of residents of San José del Progreso and collaborators of Compañía Minera Cuzcatlán, who asked him to avoid the closure of the San José mining unit, located in that Oaxacan municipality. The president was asked to avoid the loss of more than 1,200 direct jobs and around 8,000 indirect ones.
  • The current government has stopped the issuance of mining concessions and investment in Mexico. Parallel to the policy of null concessions, the president has presented a bill that intends to reserve strategic minerals such as lithium only for the State, denying any concession for their exploration, production or commercialization. Both their decisions not to grant a single concession in three years of government “and the promise not to do so in the entire six-year term”and to reserve strategic minerals for the State have been strongly criticized by specialists and representatives of the mining industry, to the point of warning that the future of the country is being“mortgaged.

ON EXPLORATION

  • Ranchero Gold Corp., provided an update of its ongoing drilling program conducted at its Maíz Azul project, located 3.5km east of Alamos Gold´s Mulatos mine in Sonora. To date, eight holes have been drilled totalling 1,245m, which represents 42% of the Phase 1 drill program which plans to test the La Colmena, La Cascada, and X-structure targets. 175 samples have been submitted to lab and results are expected to arrive in Q1, 2022.
  • Mammoth Resources Corp., received from SEMARNAT a permit to expand its drilling program at its Tenoriba project in Chihuahua. SEMARNAT approved the company´s application for up to 182 additional drill sites and covers the entire 6 km Au-Ag mineralization at the Tenoriba project.
  • Kootenay Silver Inc., announced drill results from Agua, 5 Señores, and Chiva Veins within its Copalito project in Sinaloa. Highlights at Agua Vein include hole BDH-20-055 with 2 g/t Au, 125 g/t Ag and 0.9% combined Pb+Zn (276 g/t AgEq) over 23m, including 9.26 g/t Au, 28 g/t Ag, and 0.6% combined Pb+Zn (643 g/t AgEq) over 5m, including 21.1 g/t Au, 29 g/t Ag, and 0.3% combined Pb+Zn (1,409 g/t AgEq) over 0.65m, plus 0.82 g/t Au, 587 g/t Ag, and 1.6% combined Pb+Zn (676 g/t AgEq) over 3m; hole BDH-21-056 with 0.22 g/t Au, 101 g/t Ag, and 0.9% combined Pb+Zn (135 g/t AgEq) over 21m, including 0.28 g/t Au, 163 g/t Ag, and 0.8% combined Pb+Zn (199 g/t AgEq) over 7m, including 0.48 g/t Au, 440 g/t Ag and 0.9% combined Pb+Zn (492 g/t AgEq) over 1.5m; and hole CDH-21-80 with 0.42 g/t Au, 63 g/t Ag, and 4.8% combined Pb+Zn (199 g/t AgEq) over 1.84m, including 0.69 g/t Au, 133 g/t Ag, and 11% combined Pb+Zn (423 g/t AgEq) over 0.43m. Highlights at 5 Señores Vein include hole BDH-20-51 with 2.95 g/t Au, 98 g/t Ag, and 0.3% combined Pb+Zn (290 g/t AgEq) over 1.4m; and hole BDH-20-052 with 0.23 g/t Au, 14 g/t Ag, and 0.6% combined Pb+Zn (34 g/t AgEq) over 3.3m, including 1.28 g/t Au, 61 g/t Ag, and 3.3% combined Pb+Zn (174 g/t AgEq) over 0.48m. Highlight on Chiva Vein include hole BDH-21-057 with 0.06 g/t Au, 106 g/t Ag, and 0.3% combined Pb+Zn (118 g/t AgEq) over 6.33m, including 0.23 g/t Au, 513 g/t Ag, and 0.8% combined Pb+Zn (546 g/t AgEq) over 0.82m; hole BDH-21-058 with 0.07 g/t Au, 41 g/t Ag, and 0.1% combined Pb+Zn (48 g/t AgEq) over 12m, including 0.5 g/t Au, 300 g/t Ag, and 1.4% combined Pb+Zn (1,364 g/t AgEq) over 0.35m; and hole BDH-21-063 with 0.92 g/t Au, 86 g/t Ag, and 5.5% combined Pb+Zn (269 g/t AgEq) over 1.82m, including 4.49 g/t Au, 453 g/t Ag, and 2.7% combined Pb+Zn (1,344 g/t AgEq) over 0.32m.
  • Silverton Metals Corp., signed a surface agreement for three years for its Pluton Silver-Zinc project with the Comisariado Ejidal of Ejido Mapimi in Durango State. The agreement provides access to the land for surface exploration work, including diamond drilling and use of a core storage facility.

ON MINING

  • Americas Gold and Silver Corporation, announced the re-opening of its Cosalá mine operation in Sinaloa. The Los Braceros plant has returned to nameplate production with a steady source of feed from a combination of existing stockpiled ore and new production from the San Rafael mine.
  • Santacruz Silver Mining Ltd., reported Q3, 2021 production and financial results from their Zimapan and Rosario mines in Hidalgo and San Luis Potosi respectively. At Zimapan mine, Hidalgo, the company milled 186,642 tonnes to produce 867.2K Oz AgEq, and sold 829.2K Oz AgEq. Cash costs per ton and per Oz AgEq produced were USD $53.88 and USD $17.72 respectively. AISC was USD $22.81 per Oz Ag Eq. The company reported revenue of USD $14.4M and a gross profit of USD $3.93M. At Rosario mine, San Luis Potosi, the company milled 2,306 tonnes to produce 5,698 Oz AgEq and sold 10,765 Oz AgEq. Cash costs per ton and per Oz AgEq produced were USD $173.04 and USD $42.81 respectively. AISC was USD $22.47 per Oz AgEq produced. The company reported revenue for USD $182K and gross profit of (272K).
  • Guanajuato Silver Company Ltd., provided a production update on its El Cubo mine, Guanajuato. The company has mined since October 15, 2021 450 tonnes of ore per day from El Cubo mine and is processing an average of 1,000 tonnes per day. It expects the plant to operate for 22 to 24 days for an average monthly operating rate of 22,500 tonnes for the next 6 months.

ON FINANCING

  • Guanajuato Silver Company Ltd., closed the first tranche of its non-brokered private placement offering of up to 16M units at a price of CAD $0.55 per unit. The net proceeds from the offering will be used to fund the ongoing exploration, development, and expansion of the Company’s El Cubo mine and mill complex and El Pinguico silver and gold project, and for general corporate and working capital purposes.
  • Fabled Silver Gold Corp., renewed its agreement with Agora Internet Relations to provide online advertising, marketing, and branding services and wishes to issue 519,007 common shares in respect of the settlement. It also engaged Hybrid Financial Ltd., to provide marketing services. Hybrid has been engaged for an initial period of 6 months, starting on December 1, 2021 and will be paid a monthly fee of $22,500 plus payable taxes (Santa Maria project, Chihuahua).
  • First Majestic Silver Corp., announced that it will issue USD $200M aggregate principal amount of Convertible Senior Notes or USD $230M aggregate principal amount if the over-allotment option is exercised in full. The company intends to use approximately USD $164.9M of the net proceeds of the offering to repurchase, in separate privately negotiated transactions, approximately USD $125.2M aggregate principal amount of its outstanding 1.875% convertible senior notes. The company intends to use the remainder of the net proceeds from the offering for general corporate purposes, including strategic opportunities (San Dimas mine, Durango).
  • Guanajuato Silver Company Ltd., received USD $750K from the sale of 90 tonnes of bulk Ag-Au concentrate grading approximately 220 Oz Ag per tonne and 2.2 Oz Au per tonne from El Cubo mine in Guanajuato, and anticipates receiving a payment of approximately USD $1.3M for the sale of approximately 175 tonnes of additional Ag-Au concentrate at similar grades on or about December 3, 2021.
  • Orogen Royalties Inc., announced initial production at the Ermitaño deposit in Sonora where the company holds a 2% net smelter return. The first doré gold-silver pour occurred November 11, 2021 and commercial production is expected in Q1 2022.
  • VVC Exploration Corporation announced an arrangement with Stockhouse Publishing to assists VVC with general market outreach and investor awareness. At the time, the company issued to Stockhouse 157,900 common shares of VVC and a $60K Note to be converted into shares in four tranches over a year. With the approval of TSX Venture Exchange, one quarter of the note ($15K) will now converted, as part of the second tranche, to 136,365 shares at a price of $0.11 per share, being yesterday´s market price discounted by 25%. The next share issuance will occur in three months (Gloria Copper project, Chihuahua).

ON RESOURCES AND DEVELOPMENT

  • Discovery Silver Corp., reported a Preliminary Economic Assessment (PEA) on its Cordero project, Chihuahua. The reports indicates that the ultimate pit contains 719M tonnes consisting of 228M tonnes of mill feed and 491M tonnes of waste for an average strip ratio of 2.2:1 Highlights include a Base Case after-tax NPV 5% of USD $1,160M and IRR of 38% assuming prices of USD $22 / Oz Ag, USD $1,600/ Oz Au, USD 1/Lb Pb, and USD $1.0/ Lb Zn; and a Upside Case after-tax NPV 5% of USD $1,889M and IRR of 55%, assuming prices of USD $27.5/Oz Ag, USD $1,880/Oz Au,  USD $1.1/Lb Pb, and USD $1.45/Lb Zn; 16-year mine life with an average annual production of 26M Oz AgEq at an AISC of USD $12.35 / Oz AgEq; initial development CAPEX of USD $368M post-tax payback of 2 years for Base Case and 1.4 years for Upside Case; 99% of tonnes processed in the PEA mine are in the Measured + Indicated category; and Ag represents > 60% of the net smelter return in the first five years of the mine life and >50% of the net smelter return over the life of mine.
  • Endeavour Silver Corp., released high grade results from its ongoing drilling program at their Guanacevi and Bolañitos mines in Durango and Guanajuato respectively. At Guanacevi mine, highlights include hole UCM-67 with 1.97 g/t Au and 1,254 g/t Ag (1,412 g/t AgEq) over a true width (TW) of 3.22m, including 3.6 g/t Au and 2,690 g/t Ag (2,978 g/t AgEq) over a TW of 0.2m, extending the El Curso orebody along strike; and hole SCSU-11 with 4.36 g/t Au, 1,450 g/t Ag (1,798 g/t AgEq) over a TW of 3.18m, including 7.97 g/t Au and 4,568 g/t Ag (5,206 g/t AgEq) over 0.31m, extending the Santa Cruz South orebody to depth. At Bolañitos mine, Guanajuato, highlights include hole BS-04 with 8.08 g/t Au and 151 g/t Ag (797 g/t AgEq) over a TW of 1.67m, including 89.6 g/t Au and 88 g/t Ag (8,046 g/t AgEq) over a TW of 0.08m on a new discovery, the Tepetateras vein, south of the current workings; and hole BS-03 with 1.26 g/t Au and 241 g/t Ag (342 g/t AgEq) over 0.96m, on the Lulu vein, south of the current workings.
  • Silver Tiger Metals Inc., reported a wide high grade drill intersection on the Benjamin Vein at its El Tigre project in Sonora. Hole ET-21-272 encountered 0.35 g/t Au, 388 g/t Ag, 0.14% Cu, 2.9% Pb, and 6.2% Zn (701 g/t AgEq) over 23.1m, including 0.5 g/t Au, 587 g/t Ag, 0.21% Cu, 4.3% Pb, and 9.2% Zn (1,051 g/t AgEq) over 15.1m, including 0.52 g/t Au, 1,642 g/t Ag, 0.58% Cu, 11.9% Pb, and 25.2% Zn (2,855 g/t AgEq) over 5.1m, including 0.37 g/t Au, 2,877 g/t Ag, 1.05% Cu, 14.6% Pb, and 30.8% Zn (4,375 g/t AgEq) over 2.6m.
  • Fabled Silver Gold Corp., released results from hole SM0-42 collared at its Santa Maria project, Chihuahua. This hole was designed to fill in a drill poor gap just to the west of the current resources. The hole intersected six gold bearing zones. Highlights are 0.49 g/t Au, 117 g/t Ag, 0.05% Pb, 0.1% Zn (143 g/t AgEq) over 3.70m, including 0.91 g/t Au, 211 g/t Ag, 0.1% Pb, 0.1% Zn, and 0.01% Cu (258 g/t AgEq) over 1.20m, plus 0.43 g/t Au, 227 g/t Ag, 0.1% Pb, 0.3% Zn and 0.01% Cu (249 g/t AgEq) over 1.71m.
  • GR Silver Mining Ltd., announced the discovery of a gold-silver rich mineralized zone during the initial reconnaissance drilling at Loma Dorada target within its Plomosas project in Sinaloa. Hole LDSP21-007 encountered 5.23 g/t Au and 166 g/t Ag over 1m. “The Loma Dorada target is currently the subject of reconnaissance drilling, testing a new geological model of NW trending, Au-Ag rich veining – a possible extension 1.2 km along strike from La Colorada”.

ON DEALS AND CORPORATE ISSUES

  • Almadex Minerals Ltd., announced the appointment of two members to its Board of Directors and the retirement of one Director after many years of valued service. The company also granted stock options to officers, employees and directors to purchase an aggregate of 1,075,000 common shares at a price of $0.31 per share which expires on December 5, 2023 (El Chato project, Puebla).
  • Capstone Mining Corp. and Mantos Copper Limited entered into a definitive agreement to combine business to create Capstone Copper Corp., a premier copper producer with transformational near-term growth. Upon completion of the transaction, former Capstone and Mantos shareholders will collectively own 60.75% and 39.25% of Capstone Copper, respectively, on a fully-diluted share basis. (Cozamin mine, Zacatecas).
  • Heliostar Metals Limited announced the appointment of a new member to its Board of Directors (Cumaro project, Sonora).
  • Monumental Minerals Corp., announced the appointment of an advisory board to assist the company with the exploration and drill target definition of its Jemi rare earth elements project in Coahuila. Monumental also appointed a new Director to its Board. The Company also granted 275,000 incentive stock options to advisors at a price of $0.50 per common share for a period of five years.

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, a piece of core showing a quartz vein with massive chalcopyrite from an epithermal quartz vein system in a current producing mine in Zacatecas, Mexico.  Photo by Miguel A Heredia.

The Mining and Exploration News in Mexico: Highlights on the Third Week of November, 2021. 

Quartz hydrothermal breccia

By Miguel A Heredia

During the 46th week of the year (November 15th to November 21st, 2021), at least 35 press releases were announced by companies working in Mexico, and 4 news published by the media with twelve reporting resources and developments of their properties, seven announcing financial issues, seven communicating production and financial results, four informing on exploration results, four disclosing deals and corporate issues, four commenting on Mexican issues, and one discussing social issues.  ON MEXICO ISSUES, Fortuna Silver announced that it is trying to avoid the closure of its San Jose silver mine in Oaxaca after the expiration of its environmental permit last month. The company stated that it is fighting for the stability of 1,200 active workers of its San Jose mine. Mexico´s Secretary of the Environment and Natural Resources (SEMARNAT) announced that it will carry out an indigenous consultation to define the future of the San Jose mine in Oaxaca. ON EXPLORATION, In Sonora, Tocvan announced exploration plan for its El Picacho project, and Ridgestone received permit for drill program on the El Cobre target at its Rebeico project.  In Chihuahua, Mammoth Resources reported initial drill results from its diamond drilling program conducted on Carneritos area at its Tenoriba project. In Nayarit, Sierra Madre presented trenching sampling results from its la Tigra project. ON MINING, Argonaut announced Q3, 2021 production and financial results from their Mexican operations. Excellon presented Q3, 2021 production and financial results from its Platosa mine in Durango. Elemental Royalties reported the production of 9,722 Oz Au from its Mercedes mine in Sonora during the period Q3, 2021. Americas Gold and Silver announced that its Cosalá operations are expected to ramp-out to full production of approximately 1,800 tonnes per day next month. SilverCrest reported unaudited financial results for the period Q3, 2021. Starcore announced Q2, 2021 production results from its San Martin mine in Queretaro. DynaResource reported year to date 2021 production and financial results at September 30, 2021 from its San Jose de Gracia mine in Sinaloa.  ON FINANCING, Advance increased its previously announced non-brokered private placement to $475K (Tabasquena property, Zacatecas). Aloro reported that the final CAD 60K + VAT payment of the option agreement for the Los Venados claim, Sonora with Almadex has been made by Alamos Gold. Guanajuato Silver arranged an early payment of USD $2.5M to Endeavour Silver for the acquisition of the El Cubo mine in Guanajuato. Mag Silver signed a binding commitment letter with the Bank of Montreal for a fully underwritten USD $40M revolving credit facility. Aztec closed the final tranche of its oversubscribed CAD $1.6M private placement for total proceeds of CAD $575K (Cervantes project, Sonora). Guanajuato Silver arranged a non-brokered private placement offering for gross proceeds of CAD $8.25M (El Cubo mine, Guanajuato). Silver Wolf announced a non-brokered private placement for gross proceeds of up to CAD $1.5M (Ana Maria project, Durango).  ON RESOURCES AND DEVELOPMENT, Fabled released results from hole SM20-40 collared at its Santa Maria project in Chihuahua. GoGold presented results from the last nine holes collared at its Los Ricos project in Jalisco, prior to upcoming mineral resource estimate. Orex filed a NI 43-101 technical report for a mineral resource estimate on its Coneto project in Durango. Orla provided a construction update of its Camino Rojo project in Zacatecas. Oroco commenced a diamond drilling program on Brasiles Zone at its Santo Tomas project in Sinaloa.  Prime Mining commenced a Phase 2 drilling program on its Los Reyes project in Sinaloa, which will consist of 250 holes for a total of 50,000m. Silver Dollar began an initial 3,000m drilling program at its la Joya property in Durango. SilverCrest provided an update on the construction of its Las Chispas mine in Sonora.  Southern Silver released drill results from its Cerro Las Minitas project, Durango. Capitan Mining presented results from five RC holes collared on El Capitan deposit at its Peñoles project, Durango. Mithril released its maiden JORC mineral resource estimate for the first target area at its Copalquin project, Durango. Silver Tiger presented drill results from ten holes collared on the Protectora and Caleigh veins at its El Tigre project in Sonora. ON DEALS AND CORPORATE ISSUES, Fabled received an approval from the court to spin-out its copper exploration assets in Fabled Copper Corp. Rockland signed an option agreement to acquire 100% interest in the Elektra clay lithium project in Sonora. Starcore reported results from its annual general meeting of shareholders (San Martin mine, Queretaro). Goldgroup announced the appointment of its new CEO (Cerro Prieto mine, Sonora). ON SOCIAL RESPONSIBILITY, Fresnillo plc applies development and scientific research, consolidating the concept of what they call “sustainable mining”.

ON MEXICO ISSUES

  • Fortuna Silver Mines Inc., announced that it is trying to avoid the closure of its San Jose silver mine in Oaxaca after the expiration of its environmental permit last month. Although the San Jose mine has been in operation since 2011, its main environmental authorization expired on October 23, despite the company’s efforts since May to request an extension of the permit. A recent court order allows the mine to continue operating, but only temporarily. Maria Luisa Albores, the Environment Secretariat issued a statement saying it would work to organize a consultation with indigenous communities close to the project as part of the environmental authorization. It did not provide details on the timing of the consultation, nor did it say whether the mine could continue to operate in the meantime. The company stated that it is fighting for the stability of 1,200 active workers of its San Jose mine.
  • Mexico’s Secretary of the Environment and Natural Resources (SEMARNAT) announced that it will carry out an indigenous consultation to define the future of the San Jose mine in Oaxaca. A dozen of Zapotecas communities will decide whether the San José mine, owned by Minera Cuzcatlán, will continue operating in the Valles Centrales region of Oaxaca, through a consultation carried out by the Ministry of SEMARNAT. It should be noted that the San José mine has four environmental impact authorizations in force, however there is another one that expired on October 23, and although the company requested its extension in due time and form, SEMARNAT has not issued a ruling.
  • Fortuna Silver Mines Inc., provided an update on the appeal to the denial of the extension of the environmental impact authorization (EIA) at its San Jose mine, Oaxaca. “The appeal will be brought by Minera Cuzcatlán in the Mexican court. The grounds for the appeal are that Minera Cuzcatlán is in full compliance with all material environmental laws, and therefore Minera Cuzcatlán has the right to an extension of the EIA under applicable law”.

ON EXPLORATION

  • Tocvan Ventures Corp., announced exploration plan for its El Picacho project in Sonora, where five primary targets have been identified to date combining for over 6km of prospective trend. The company plans to carry out surface sampling and detailed target mapping, trenching and channel sampling of priority targets, and drill targeting. The project is fully permitted for 1,995m of trenching, 60 drill holes (up to 15,000m), and 2.2km of access roads.
  • Ridgestone Mining Inc., received permit for drill program on the El Cobre target at its Rebeico project in Sonora. This maiden drill program will consists of 14 RC holes for a total of approximately 2,700m, and will be conducted along the main El Cobre structure, where recent grab and rock-chip sampling of the surface stockpile of mined material from the El Cobre structure returned up to 3.5% Cu, 53 g/t Ag and 0.52 % Mo over widths of up to 5.0m.
  • Mammoth Resources Corp., reported initial drill results from its diamond drilling program conducted on Carneritos area at its Tenoriba project in Chihuahua. Four diamond holes have been completed for a total of 426m. Highlights include hole TEN21-01 with 0.31 g/t Au and 17 g/t Ag (0.53 g/t AuEq) over 37.5m, including 0.47 g/t Au and 75 g/t Ag (1.7 g/t AuEq) over 4.5m; hole TEN21-03 with 0.54 g/t Au and 4 g/t Ag (0.59 g/t AuEq) over 43.5m, including 0.69 g/t Au and 3 g/t Ag (0.73 g/t AuEq) over 6m, including 0.67 g/t Au and 5 g/t Ag (0.73 g/t AuEq) over 4.5m; and hole TEN21-04 with 0.53 g/t Au and 7 g/t Ag (0.63 g/t AuEq) over 19.5m.
  • Sierra Madre Gold and Silver Ltd., presented trenching sampling results from its la Tigra project in Nayarit. Trench LTZ01 returned 1.44 g/t Au and 10 /t Ag (1.58 g/t AuEq) over a length of 8.6m;  trench LTZ02 returned 0.46 g/t Au and 56 g7t Ag over a length of 19.7m; trench LTZ03 returned 1.22 g/t Au and 7 g/t Ag (1.3 g/t AuEq) over a length of 11.6m, including 2.52 g/t Au and 10 g/t Ag (2.7 g/t AuEq) over a length of 4.25m; and trench LTZ04 returned 1.45 g/t Au and 9 g/t Ag (1.57 g/t AuEq) over a length of 12.8m, including 3.22 g/t Au and 35 g/t Ag (3.69 g/t AuEq) over a length of 5.3m.

ON MINING

  • Argonaut Gold Inc., announced Q3, 2021 production and financial results from their Mexican operations. At El Castillo mine, Durango, Argonaut mined 2,143,000 tonnes of 0.28 g/t Au to produce 11,123 Oz Au and 10,448 Oz Ag or 11,246 Gold Equivalents Ounces (GEOs). It sold 10,473 Oz Au and 11,875 Oz Ag (10,612 GEOs) at a cash cost of USD $1,173 per Oz Au sold. At San Agustin Mine, Durango, the company mined 2,598,000 tones of 0.30 g/t Au to produce 16,258 Oz Au and 116,309 Oz Ag (17,626 GEOs). Argonaut sold 17,611 Oz Au and 121,993 Oz Ag at a cash cost of USD $1,011 per Oz Au sold. At La Colorada mine, Sonora, the company mined 1,224,000 tonnes of 0.67 g/t Au to produce 15,360 Oz Au and 37590 Oz Ag (15,802 GEOs). It sold 15,332 Oz Au and 35408 Oz Ag (15,749 GEOs) at a cash cost of USD $696 per Oz Au sold.
  • Excellon Resources Inc., presented Q3, 2021 production and financial results from its Platosa mine in Durango. The company mined 21,592 tonnes and milled 21,302 tonnes of 526 g/t Ag, 4.9% Pb, and 5.4 % Zn with metallurgical recoveries of 90.9%, 81.2%, and 78.3% respectively. Excellon produced 326.7K Oz Ag, 1.87M Lb Pb, and 1.98M Lb Zn (521.2K Oz AgEq) at total and AISC of USD$11.02 and USD$21.52 per Oz Ag payable respectively. The company reported revenues of USD $9.2M; gross profit of USD $1.8M, and cash and marketable securities of USD $5M at September 30, 2021.
  • Elemental Royalties Corp., reported the production of 9,722 Oz Au from its Mercedes mine in Sonora during the period Q3, 2021.
  • Americas Gold and Silver Corporation announced that its Cosalá operations are expected to ramp-out to full production of approximately 1,800 tonnes per day next month. Concentrate shipment have resumed. A return to revenue and cash flow generation is expected later in Q4, 2021.
  • SilverCrest Metals Inc., reported unaudited financial results for the period Q3, 2021. The Company recorded USD $42.1M as development expenditures under mineral property, plant and equipment, for the Las Chispas Project, which primarily consisted of decline construction and underground working of USD $17.2M; drilling costs of USD $9.7M; field and administrative costs of USD $6.3M; and salaries and remuneration of USD $3.3M. The Company also recorded additions, during the nine months ended September 30, 2021, of USD $60M related to the Las Chispas Project as mineral property, plant and equipment for various items which was primarily construction in progress.  At September 30, 2021, SilverCrest had cash and cash equivalents of USD $199M. At September 30, 2021, the Company had value-added taxes (“IVA”) receivable in Mexico of USD $17.9M. The Company has financed its operations to date through the issuance of common shares and debt. The Company currently has no operations from which to derive revenues.
  • Starcore International Mines Ltd., announced Q2, 2021 production results from its San Martin mine in Queretaro. The company milled 56,061 tonnes of 1.56 g/t Au and 23 g/t Ag with metallurgical recoveries of 87.81% and 54.83% respectively, to produce 2,782 Oz AuEq.
  • DynaResource Inc., reported year to date 2021 production and financial results at September 30, 2021 from its San Jose de Gracia mine in Sinaloa. The company mined and milled 66,695 tonnes of 9.48 g/t Au with a metallurgical recovery of 89.45%, to produce 18,141 Oz Au, from which 16,036 Oz Au were sold. The company reported revenue of $25.9M, net operating income of $11.3M, and earnings per share of $0.64.

ON FINANCING

  • Advance Gold Corp., increased its previously announced non-brokered private placement to $475K (Tabasquena project, Zacatecas).
  • Aloro Mining Corp., reported that the final CAD 60K + VAT payment of the option agreement for the Los Venados claim, Sonora with Almadex Minerals Limited has been made by Alamos Gold Inc.  Aloro also reported that by mutual agreement with Alamos, the second year work commitment was reduced from USD $1.5M to USD $750K, while the third year work commitment was increased from USD $3M to USD$3.75M, to total USD $M to earn 70% interest in the Los Venados project.
  • Guanajuato Silver Company Ltd., arranged an early payment of USD $2.5M promissory note to Endeavour Silver Corp., for the acquisition of the El Cubo mine in Guanajuato. In consideration, Endeavour has agreed to reduce the principal amount of the note by USD $25K and settle the Mexican VAT for common shares of the company. It will issue 901,224 common shares to Endeavour at a deemed price of CAD $0.55 per share to settle VAT totalling USD $396K.
  • Mag Silver Corp., signed a binding commitment letter with the Bank of Montreal for a fully underwritten USD $40M revolving credit facility. The facility will be used to develop its Juanicipio project in Zacatecas, as well as for working capital and general corporate purposes (Mag Silver only controls 44% of the project).
  • Aztec Minerals Corp., closed the final tranche of its oversubscribed CAD $1.6M private placement for total proceeds of CAD $575K. Part of the proceeds will be used to conduct exploration work on its Cervantes project in Sonora, as well as for general working capital purposes.
  • Guanajuato Silver Company Ltd., arranged a non-brokered private placement offering of 15M units at a price of CAD $0.55 for gross proceeds of CAD $8.25M. The net proceeds from the offering will be used to fund the ongoing exploration, development, and expansion of the Company’s El Cubo mine and mill complex and El Pinguico silver and gold project, both located near the city of Guanajuato, Mexico; and for general corporate and working capital purposes.
  • Silver Wolf Exploration ltd., announced a non-brokered private placement financing for up to 6M units at a price of CAD $0.25 per unit for aggregate gross proceeds of up to CAD $1.5M. Net proceeds will be used for financing the initial drill program at its Ana Maria project in Durango, and for general working capital purposes.

ON RESOURCES AND DEVELOPMENT

  • Fabled Silver Gold Corp., released results from hole SM20-40 collared at its Santa Maria project in Chihuahua. The drill hole encountered seven gold bearing zones as shown in the figure below:
“Hole SM20-40 was successful and continues to add to the mineral inventory as the down plunge of the gold domain system discovered in holes SM20 – 20, 22 remains open at depth. Hole SM20-41 will further explore the down dip potential of this zone. Further drilling maybe required in this area”.
·         GoGold Resources Inc., presented results from the last nine holes collared at its Los Ricos North project in Jalisco, prior to upcoming mineral resource estimate. The most significant mineralized intervals were encountered in holes LRGF-21-095 collared at El Favor Este with 0.35 g/t Au and 113 g/t Ag (1.85 g/t AuEq or 139 g/t AgEq) over 13.3m, including 3.81 g/t Au and 1,237 g/t Ag (20.3 g/ AuEq or 1,523 g/t AgEq) over 0.7m, and 0.56 g/t Au and 156 g/t Ag (2.65 g/t AuEq or 199 g/t AgEq) over 1.2m; and hole LRGF-21-084 with 0.17 g/t Au and 58 g/t Ag (0.94 g/t AuEq or 70 g/t AgEq) over 66.1m, including 0.37 g/t Au and 111 g/t Ag (1.85 g/t AuEq or 138 g/t AgEq) over 13.5m, including 1.03 g/t Au and 167 g/t Ag (3.26 g/t AuEq and 245 g/t AgEq) over 3m, plus 0.31 g/t Au and 154 g/t Ag (2.36 g/t AuEq or 177 g/t AgEq) over 5.5m.
·         Orex Minerals Inc., filed a NI 43-101 technical report for a mineral resource estimate on its Coneto project in Durango. Orex reported inferred resources for 5,325,000 tonnes of 1.67 g/t Au and 112 g/t Ag (3.15 g/t AuEq) to contain 286K Oz Au and 19.1M Oz Ag (538K Oz AuEq) as at August 30, 2021.
·         Orla Mining Ltd., informed that up to October 2021, the mine construction of its Camino Rojo project in Zacatecas shows a progress of 96% and that it remains on budget.  The company reported capital expenditures of USD $24.3M in Q3, 2021 and totalled USD $106.3M as Sept 30, 2021, out of a total of USD $134.1M. “The main activities completed during the quarter included ramp up of mining activities, mechanical completion of the crushing system, conveying system, reclaim tunnel, overland conveyor, and grasshopper conveyors, commencement of wet commissioning with introduction of ore into the crushing circuit, and completion of the camp facilities. Overliner ore material was placed on the heap leach pad and ore stacking began in early October in preparation for cyanide leaching which is expected to begin in mid-November”.
·         Oroco Resource Corp., commenced a diamond drilling program on Brasiles Zone at its Santo Tomas project in Sinaloa. Brasiles is the northern extension of the mineralization in the Santo Tomas North Zone, and consists of two very broad, sub-parallel exploration targets. The first hole underway will test a NE striking, chargeability-high resistivity low response, while the second hole will test a blind chargeability-high feature located west of and sub-parallel to the Brasiles target.
·         Prime Mining Corp., commenced a Phase 2 drilling program on its Los Reyes project in Sinaloa, which will consist of 250 holes for a total of 50,000m. Goal of the Phase 2 drilling program is to expand resources along the three main corridors of known open-pit mineralization: Guadalupe Structure, Zapote-Tahonitas, and Central Zone Structure. In addition, Prime will test several high potential new target generated in the previous exploration campaign   which are located within approximately 5km radius of the main mineralized corridors at Los Reyes such as Mina 20/21, Mariposa, Las Primas, Fresnillo, El Tule and others on the two parallel El Orito trends.
·         Silver Dollar Resources Inc., began an initial 3,000m drilling program at its la Joya property in Durango.  Objective of the drilling program is to test the possible structural extension of known mineralized zones identified in historical drilling on the Noria portion of the La Joya property.
·         SilverCrest Metals Inc., informed that the construction progress at its Las Chispas mine in Sonora was 54% complete compared to an overall scheduled completion of 48%. Construction continued to progress well in the quarter with the main access road, plant detailed engineering, and concrete work now complete, bridge construction 88% complete, plant construction 49% complete, power line 47% complete, and underground infrastructure ongoing. With underground development ahead of schedule at the end of the H1, 2021, development rates continued to progress well in Q3, 2021 for a total of 15.7 km completed since underground development began in Q1, 2019.
·         Southern Silver Exploration Corp., released drill results from the North Felsite chimney at its Cerro Las Minitas project, Durango. Highlights include hole 21CLM-175 with 599 g/t Ag, 0.08 g/t Au, 0.03% Cu, 16.9% Pb, and 10.2% Zn (1,530 g/t AgEq or 38.8% ZnEq) over a true width (TW) of 1.9m, including 760 g/t Ag,0.07 g/t Au, 0.03% Cu, 23.2% Pb, and 17.4% Zn (2,169 g/t AgEq or 55% ZnEq); and hole 21CLM-172 with 313 g/t Ag, 0.25 g/t Au, 0.07% Cu, 7% Pb, and 1.3% Zn (610 g/t AgEq or 15.5% ZnEq) over a TW of 0.4m, plus 180 g/t Ag, 0.06 g/t Au, 0.36% Cu, 3.7% Pb, and 0.5% Zn (361 g/t AgEq or 9.1% ZnEq) over a TW of 0.5m. Mineralization remains open along strike and at depths below 250m.
·         Capitan Mining Inc., presented results from five RC holes collared on El Capitan deposit at its Peñoles project, Durango. The most significant drill intercept was encountered in hole 21-CARC-40 with 0.30 g/t Au over 15.2m, including 1.44 g/t Au over 1.5m in the hanging wall zone, plus 0.32 g/t Au and 7 g/t Ag (0.40 g/t AuEq) over 76.2m, including 0.59 g/t Au and 8 g/t Ag (0.70 g/t AuEq) over 18.3m, including 1.2 g/t Au and 10 g/t Ag (1.33 g/t AuEq) over 1.5m in the Capitan Main zone.
·         Mithril Resources Ltd., released its maiden JORC mineral resource estimate for the first target area at its Copalquin project, Durango. The company reported for El Refugio-La Soledad target indicated resources for 691,000 tonnes of 5.43 g/t Au and 114 g/t Ag (7.06 g/t AuEq) to contain 121K Oz Au and 2.54M Oz Ag (157K Oz AuEq) and inferred resources for 1,725,000 of 4.55 g/t Au and 152g/t Ag (6.72 g/t AuEq) to contain 252K Oz Au and 8.4M Oz Ag (372K Oz AuEq). Total Indicated + Inferred resources are 2,416,000 tonnes of 4.8 g/t Au and 141 g/t Ag (6.81 g/t AuEq) to contain 373K Oz Au and 10.95M Oz Ag (529K Oz AuEq).
·         Silver Tiger Metals Inc., presented drill results from ten holes collared on the Protectora and Caleigh veins at its El Tigre project in Sonora. The most significant mineralized intervals were encountered in holes ET-20-163 collared on the Protectora Vein with 0.74 g/t Au and 335 g/t Ag (5.21 g/t AuEq or 391 g/t AgEq) over 3.2m, including 3.56 g/t Au and 1,782 g/t Ag (27.32 g/t AuEq or 2,049 g/t AgEq) over 0.5m, plus 0.48 g/t Au and 727 g/t Ag (10.17 g/t AuEq or 763 g/t AgEq) over 1m, including 0.89 g/t Au and 1,374 g/t Ag (19.21 g/t AuEq or 1,441 g/t AgEq) over 0.5m; hole ET-20-164 on the Protectora Vein with 4.59 g/t Au and 370 g/t Ag (9.52 g/t AuEq or 714 g/t AgEq) over 1.2m, including 10.5 g/t Au and 805 g/t Ag (21.23 g/t AuEq or 1,592 g/t AgEq) over 0.5m; hole ET-20-158 on Caleigh Vein with 4.09 g/t Au and 815 g/t Ag (14.96 g/t AuEq or 1,122 g/t AgEq) over 0.7m; and hole ET-20-156 collared on Caleigh Vein with 7.09 g/t Au and 752 g/t Ag (17.12 g/t AuEq or 1,284 g/t AgEq) over 0.3m.

ON DEALS AND CORPORATE ISSUES
·         Fabled Silver Gold Corp., received an approval from the court to spin-out its copper exploration assets in Fabled Copper Corp.
·         Rockland Resources Ltd., signed an option agreement to acquire 100% interest in the Elektra clay lithium project in Sonora. The Elektra project is contiguous to the advanced Sonora Lithium project owned by Bacanora Lithium plc. The company can earn a 100% interest (less NSR) in the Elektra project through cumulative option payments of 10M common shares in the company and USD $1.5M over a 48 month period. A 2% NSR will be granted to the vendors and the company will have an option to purchase 50% of the NSR for USD $1M at any time.
·         Starcore International Mines Ltd., reported results from its annual general meeting of shareholders (San Martin mine, Queretaro).
·         Goldgroup Mining Inc., announced the appointment of its new CEO effectively immediately. The previous interim CEO will continue as the company´s CFO (Cerro Prieto mine, Sonora).

ON SOCIAL RESPONSIBILITY
·         Fresnillo plc informed that it applies development and scientific research, consolidating the concept of what they call “sustainable mining”. The company implemented a “life vest” for monitoring the health of its workers, coupled with the use of artificial intelligence in data analysis systems such as Big Data, biometric readers and new generation extraction.

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

On the picture above, quartz hydrothermal breccia cemented by silica and fine disseminated sulphides in an epithermal quartz vein system in a project in Chihuahua, Mexico.  Photo by Miguel A Heredia.

The Mining and Exploration News in Mexico: Highlights on the First Week of November, 2021. 

Quartz hydrothermal breccia

By Miguel A Heredia

During the 44th week of the year (November 1st to November 7th, 2021), at least 29 press releases were announced by companies working in Mexico, with nine reporting resources and developments, seven informing on exploration results, six communicating production and financial results, three announcing financial issues, three disclosing deals and corporate issues, and one discussing social issues.  ON MEXICO ISSUES, no relevant news. ON EXPLORATION, In Sonora, Aztec Minerals and its JV Kootenay approved a 5,000m RC drill program at its Cervantes project,  Canuc added two new mining concessions to its San Javier project,  and Ranchero Gold provided an update on its Phase 1 drill program at its Santa Daniela project. In Chihuahua, Kootenay released results from three drill holes collared at its Columba project. In Durango, Silver Wolf engaged Terraquest to conduct a high resolution aeromagnetic, radiometric and matrix electro- magnetic geophysical survey on its Ana Maria property. In Zacatecas, Almadex completed a field program implemented to refine targets at its Las Lajas project. In Jalisco, Almadex reported that it has conducted IP geophysics at its San Pedro project. In Guerrero, Pantera Silver informed that it has completed all the reports and requirements needed to apply for a drill permit for its Nuevo Taxco project. ON MINING, Americas Gold and Silver announced that its Cosalá operation in Sinaloa has been re-started and all workers have been re-called. First Majestic announced Q3, 2021 production and financial results from their Mexican operations. Golden Minerals presented Q3, 2021 production and financial results from its Rodeo mine in Durango. Mexus announced revenue of $128K for the month of October from its Santa Elena mine in Sonora. Minera Alamos reported that it has made an initial delivery of gold doré from its Santana mine in Sonora. Torex reported Q3, 2021 production and financial results from its El Limon-Guajes Mine Complex in Guerrero, and provided full year 2021 production guidance. ON FINANCING, Aztec Minerals closed the first tranche of a private placement for gross proceeds of CAD $1M (Cervantes project, Sonora). One World Lithium closed a first tranche of a non-brokered private placement for gross proceeds of $765,221 (Salar del Diablo project, Baja California). Southern Empire announced its intention to undertake a non-brokered private placement for gross proceeds of up to $1M (Pedro Gold project, Durango).  ON RESOURCES AND DEVELOPMENT, Altaley announced that it has hired MGA Contratista Minera at its underground mining contractor for its Tahuehueto mine in Durango. Azucar Minerals reported that a mineral chemistry porphyry vectoring study has identified a new target area for a possible central porphyry system to its the El Cobre project, Veracruz. In Baja California, Comet released results from eight drill holes collared at its Santa Teresa project. Fabled reported results from one hole collared at its Santa Maria project in Chihuahua. Mithril announced drill results from its Copalquin project in Durango. Silvertone commenced a 2,200m drilling program at its Peñasco Quemado project in Sonora. Tarachi reported positive metallurgical results from its Magistral Tailings project in Durango. Vizsla released results from its ongoing resource focused drilling program from its Panuco project in Sinaloa. GR Silver provided an update on its 2021 drilling program at its Plomosas project in Sinaloa.  ON DEALS AND CORPORATE ISSUES, Candelaria Mining announced that it will commence trading on the OTCQX Best Market (Caballo Blanco project, Veracruz). Kootenay Silver and Kootenay Resources announced completion of spin-out transaction (Columba project, Chihuahua). Monumental Gold received approval from TSX to acquire from Discovery Silver the Jemi rare earth elements project in Coahuila. ON SOCIAL RESPONSIBILITY, Discovery Silver produced its first Environmental, Social and Governance (ESG) report (Cordero project, Chihuahua).

ON MEXICO ISSUE

  • No relevant news.

ON EXPLORATION

  • Aztec Minerals Corp., and its JV Kootenay Silver Inc., approved a 5,000m RC drill program, consisting of 22 holes, at its Cervantes project in Sonora. This Phase 2 drill program is expected to commence in this month and plans to test the main four targets: California, California Norte, Jasper, and Purisima East. “The primary objectives of the two phase 2021 exploration program are to better define the open pit, heap leach gold potential of the porphyry gold oxide cap at California, evaluate the potential for deeper copper-gold porphyry sulfide mineralization underlying the oxide cap, test for north and west extensions of the California mineralization at California North and Jasper, and assess the breccia potential of Purisima East”.
  • Canuc Resources Corporation added two new mining concessions to its San Javier project in Sonora. The new concessions acquired by staking are contiguous and cover extensions of one of the Company’s principal exploration targets.
  • Ranchero Gold Corp., provided an update on its 13 holes, 3,000m Phase 1 drill program, at its Santa Daniela project in Sonora. The current drill program is planned to test three low-sulphidation epithermal targets: La Colmena, La Cascada, and X-Structure. To date, only 360m have been completed in two holes.
  • Kootenay Silver Inc., released results from three drill holes collared at its Columba project in Chihuahua. Significant drill intercepts were encountered in holes CDH-21-110 with 269 g/t Ag, 0.3% Pb, and 0.8% Zn over 55m, including 453 g/t Ag, 0.6% Pb, and 1.4% Zn over 29.9m, including 650 g/t Ag, 0.9% Pb, and 2.3% Zn over 17.8m, and including multiple mineralized intervals varying from 100-1,915 g/t Ag, 0.1-5.4% Pb, and 0.1-9% Zn in widths from 0.3-2.5m; hole CDH-21-109 with  100 g/t Ag, 0.05% Pb, and 0.1% Zn over 31m, including 193 g/t Ag, 0.1% Pb, and 0.2% Zn over 14.56m, including 294 g/t Ag, 0.1% Pb, and 0.4% Zn over 7.11m, and including multiple mineralized intervals varying from 167-592 g/t Ag, 0.1-0.2% Pb, and 0.1-1% Zn over widths of 0.7-2.31m; and hole CDH-21-108 with 57 g/t Ag, 0.02% Pb, and 0.1% Zn over 166m, including 98 g/t Ag, 0.03% Pb, and 0.1% Zn over 77m, including 328 g/t Ag, 0.1% Pb, and 0.5% Zn over 11m, including 504 g/t Ag, 0.2% Pb, and 0.7% Zn over 5.9m, including 1,100 g/t Ag, 0.5% Pb, and 2% Zn over 1m, and including additional mineralized intervals varying from 124-331 g/t Ag, 0.1-0.2% Pb, and 0.2-0.6% Zn over widths of 0.5-1.5m.    
  • Silver Wolf Exploration Ltd., engaged Terraquest to conduct a high resolution aeromagnetic, radiometric and matrix electro- magnetic geophysical survey on its Ana Maria property, Durango. A total of 1,800 line kilometers will be flown over the entire property which consists of 9 mining concessions encompassing 2,549 hectares.
  • Almadex Minerals Ltd., completed a field program implemented to refine targets at its Las Lajas project in Zacatecas, prior to a first pass diamond drill program planned for later this year. Las Lajas consists of a banded epithermal vein system and was staked by the company during a regional exploration program.
  • Almadex Minerals Ltd, reported that it conducted IP geophysics at its San Pedro project in Jalisco, and has identified high chargeability responses that were not tested by the past drilling efforts. A drill program is currently underway at this project. Almadex and previous operators carried out surface sampling, geophysics, and drilling at the project. Historical reports include results of 55 sample reconnaissance rock chip sampling program which returned gold values from below detection to 12.4 g/t Au (averaging 0.44 g/t Au) and 0.07 to 2,490 g/t Ag (averaging 71.0 g/t Ag), and one RC hole including 1.65 g/t Au and 19 g/t Ag over a length of 6.08m.
  • Pantera Silver Corp., informed that it has completed all the reports and requirements needed to apply for a drill permit for its Nuevo Taxco project. The company filed a Manifiesto de Impacto Ambiental (MIA) and an Estudio Técnico Justificativo (ETJ) with SEMARNAT. The Company is completing final preparations for drilling in anticipation of receiving a drill permit before the end of November.

ON MINING

  • Americas Gold and Silver Corporation announced that its Cosalá operation in Sinaloa has been re-started and all workers have been re-called. The milling rate is expected to ramp out in tandem with mine production with a goal of processing 1,800 tonnes per day. Cosalá has over 20K tonnes of ore ready to be processed and approximately 20 loads of existing concentrate were shipped in late October. “Initial production will be focused on the main Zone consisting of high-grade Zn areas fully developed before the illegal blockade to maximize near-term free cash flow”.
  • First Majestic Silver Corporation announced Q3, 2021 production and financial results from their Mexican operations. Figures by mine are shown in the table below:
 ·         Golden Minerals Company presented Q3, 2021 production and financial results from its Rodeo mine in Durango. Golden produced 4,777 payable Oz Au and 12,196 payable Oz Ag (4,942 Oz AuEq), and sold 4,804 Oz AuEq in doré with 1,042 Oz AuEq in doré inventory at the end of the quarter. The company reported revenues of USD $8.5M, yielding a net operating margin of USD $4.2M; USD $8.8M cash and cash equivalents balance as of Sept 30, 2021, and a net income of USD $0.4M in Q3, 2021.
·         Mexus Gold US announced revenue of $128K for the month of October from its Santa Elena mine in Sonora. With the ongoing improvements to the heap leach pad and the addition of more activated carbon cells to collect value, the company expects November revenues to exceed $150K.
·         Minera Alamos Inc., reported that it has made an initial delivery of gold doré from early material stacked on its Santana heap leach pad in Sonora state. Approximately 400 Oz Au was contained in the doré poured were sent off for final refining and sale.  
·         Torex Gold Resources Inc., reported Q3, 2021 production and financial results from its El Limon-Guajes Mine Complex in Guerrero, and provided full year 2021 production guidance. Torex produced 111,229 Oz Au at cash and AISC of USD $727 and USD $900 respectively per Oz Au sold, and sold 118,989 Oz Au at an average realized price of USD $1,786 per Oz Au. It reported an EBIDTA of USD $ 119.3M and free cash of USD $294M. The company announced a net earning of USD $36.5M or USD $0.423 per share; and adjusted net earnings of USD $42.9M or USD $0.50 per share, on both a basis and diluted basis. Cash flow totalized USD $87.8M and USD $100.2M prior to changes in non-cash working capital, including taxes paid of USD $19.7M. Free cash generated was USD $29.4M which includes an outflow of USD $12.4M related to changes in non-cash working capital. Finally, Torex reported net cash of USD $217.8M including USD $221.6M in cash and USD $3.8M of lease obligations. The company also provided a full year 2021 production guidance and expects to produce 430K-470K Oz Au at a total cash and AISC cost of USD $680-720 and USD $920-970 per Oz Au respectively.

 ON FINANCING

·         Aztec Minerals Corp., closed the first tranche of a private placement equity financing for gross proceeds of CAD $1M.The company plans to use part of the net proceeds to conduct exploration work on its Cervantes project in Sonora.
·         One World Lithium Inc., closed a first tranche of a non-brokered private placement for gross proceeds of $765,221. Net proceeds will be used primary to fund the Salar Del Diablo exploration programs as well as for the initial start up for the Company’s separation technology testing and working capital.
·         Southern Empire Resources Corp., announced its intention to undertake a non-brokered private placement for gross proceeds of up to $1M. Part of the net proceeds will be used for funding an exploration program at its Pedro Gold project in Durango, and for working capital purposes.

ON RESOURCES AND DEVELOPMENT

·         Altaley Mining Corporation announced that it has hired MGA Contratista Minera S.A. de C.V. at its underground mining contractor for its Tahuehueto mine in Durango. MGA is now mobilizing its mining equipment to Tahuehueto Gold Mine to continue underground drift and stope development to advance the Tahuehueto Mine to production. “First production through the mill, which is at an advanced stage of construction, is anticipated near the end of 2021 when the first ball mill is to be commissioned and in Q1 2022 the second ball mill will be installed and brought online to thereafter, ramp up production to the mine’s anticipated 1,000 tonne per day capacity”.
·         Azucar Minerals Ltd., reported that a mineral chemistry porphyry vectoring study, using chlorite and epidote, has identified a new target area for a possible central porphyry system to its the El Cobre project, Veracruz. This vectoring study indicates that the El Cobre district likely contains a fertile medium to large sized porphyry system and the most prospective area is located in the centre of the project where there has been little previous exploration drilling. “Field work has already been initiated in this area in order to identify any surface alteration and mineralization evidence and to prepare for a future drilling campaign to test this large target area”.
·         Comet Resources Ltd. released results from a 2,250m drill program which consisted of eight drill holes collared at its Santa Teresa project in Baja California. Highlights include holes STDDH-21-006 with 63.2 g/t Au over 1.2m, and 27.5 g/t Au over 0.7m; hole STDDH-21-007 with 31 g/t Au over 1.6m; and hole STDDH-21-001 with 26.9 g/t Au over 1m. These results will be incorporated into resource modelling.
·         Fabled Silver Gold Corp., reported results from one hole collared at its Santa Maria project in Chihuahua. Hole SM20-37 intercept the previously encountered dike and related breccia, and returned 0.56 g/t Au, 53 g/t Ag, 1.3% Pb, 3.3% Zn, and 0.14% Cu (82 g/t AgEq) over 8.8m, including 2.21 g/t Au, 112 g/t Ag, 3.3% Pb, 8.4% Zn, and 0.18% Cu (226 g/t AgEq) over 0.9, including 0.57 g/t Au, 38 g/t Ag, 1%Pb, 4.5% Zn, and 0.08% Cu (68 g/t AgEq) over 0.8m, including 0.28 g/t Au, 65 g/t Ag, 1.6% Pb, 2.9% Zn, and 0.19% Cu (79 g/t AgEq) over 1.5m,including 0.69 g/t Au, 109 g/t Ag, 2.5% Pb, 3.8% Zn, and 0.38% Cu (144 g/t AgEq) over 0.69m.
·         Mithril Resources Inc., announced drill results from hole CDH-094 collared in El Refugio area at its Copalquin project in Durango. The hole intersected 1.88 g/t Au and 62 g/t Ag (2.76 g/t AuEq) over 3m, plus 9.64 g/t Au and 279 g/t Ag (13.63 g/t AuEq) over 18.67m, including 17.9 g/t Au and 482 g/t Ag (24.8 g/t AuEq) over 9.3m. The company announced that a maiden JORC mineral resource estimate is on schedule for Q4, 2021; and that a metallurgical test work will commence at November, 2021.
·         Silvertone Metals Corp., commenced a 2,200m drilling program at its Peñasco Quemado project in Sonora. The drilling will test two priority target areas called La Fortuna and Peñasco Pit, located in separate areas of the property. In the Peñasco Pit area, the drilling program will test the interpreted along-strike extensions to this mineralized zone area that contains the drill defined historic resource estimate as identified by strong, southeast-trending geochemical anomalies (zinc, lead, barium and manganese in soils) which exceed three kilometers in length and have some coincidental geophysical anomalies. At La Fortuna, the drill program will test strong zinc, lead and copper soil anomalies with a coincidental “plug” like geophysical low resistivity anomaly that extends beyond 500 meters in depth. Company geologists interpret this geophysical anomaly as altered intrusive rocks which may be a potential source of mineralization.
·         Tarachi Gold Corp., reported positive metallurgical results from its Magistral Tailings project in Durango. Total gold recovery after 48 hours of leach time ranged from 81.7 to 86.9% on as-received, unground samples. “With the tailings assay grades previously announced averaging 2.04g/t Au and the strong gold recoveries released today; the data continues to support our goal of producing a minimum of 15K Oz Au per year at Magistral.”
·         Vizsla Silver Corp., released results from its ongoing resource focused drilling program from its Panuco project in Sinaloa. Ten new holes targeting the Napoleon Resource area and three new holes centered on the Tajitos Resource area were collared by Vizsla and encountered high-grade Ag-Au mineralization. At Napoleon area, significant mineralization was encountered in holes NP-21-173 with 99 g/t Ag, 6.8 g/t Au, 0.2% Pb, and 1.8% Zn (774 g/t AgEq) over 3.7m, and 227 g/t Ag, 2.57 g/t Au, 0.3% Pb, and 3.7% Zn (592 g/t AgEq) over a true width (TW) of 1.83m ; and hole NP-21-186, 200m step-out to the south with 58 g/t Ag, 0.93 g/t Au, 0.5% Pb, and 5.5% Zn (280 g/t AgEq) over a TW of 2.74m. At Tajitos area, highlights include hole CS-21-71 with 901 g/t Ag and 3.25 g/t Au (1,150 g/t AgEq) over a TW of 3.4m; and hole  CS-21-60 with 201 g/t Ag and 1.4 g/t Au (319 g/t AgEq) over a TW of 6.82m. These results on Tajitos expanded the resource area by 200 metres along strike to the northeast. Drilling at Panuco project continue with two rigs expanding the Josephine Vein, with step-out holes underway testing both the southern and northern extents of the vein. The company expects to announce a maiden project resource estimate for Q1, 2022.
·         GR Silver Mining Ltd., provided an update on its 2021 drilling program at its Plomosas project in Sinaloa. The drilling program has been focused primarily on new areas recognized as attractive sites for NW or NE trending, high-grade Au-Ag mineralized veins, such as Loma Dorada, San Marcial, El Trampolin, El Saltito, GAP area, and Plomosas South. Additionally, early-stage reconnaissance exploration at the Las Cuevas and El Ranchito areas provide additional prospects for future drilling.

ON DEALS AND CORPORATE ISSUES

·         Candelaria Mining Corp., announced that it will commence trading on the OTCQX Best Market remaining under the symbol “CDELF”. Previously, the Company’s U.S. share trading was on OTC Pink (Caballo Blanco project, Veracruz).
·         Kootenay Silver Inc., and Kootenay Resources Inc., announced that the spin-out transaction whereby Kootenay Silver spun-out 80% of the common shares of Kootenay Resources to its shareholders has been completed. “The holders of common shares of Kootenay Silver, received one new common share of Kootenay Silver and 0.04 Kootenay Resources Shares for each Old Kootenay Silver Share previously held. The Old Kootenay Silver Shares were delisted from the TSX Venture Exchange at the close of business on October28, 2021”  (Columba project, Chihuahua).
·         Monumental Gold Corp., received approval from TSX to acquire from Discovery Silver Corp., the Jemi rare earth elements project in Coahuila. Discovery has agreed to transfer and assign its rights and obligations of six mineral concessions comprising approximately 3,560 hectares that form the Jemi project located in the Ocampo municipality of Coahuila State to Monumental Gold. The original agreement transferred by Discovery to Monumental is an option agreement to acquire 100% of the property from vendors by completing USD $2M of exploration expenditures on the property by May 16, 2024, and paying to the vendors USD $500K in cash or common shares upon the exercise of the option. In connection with the approval by the TSX of the Assignment Agreement, the Company will change its name to “Monumental Minerals Corp., and the trading symbol will change to “MNRL”.

ON SOCIAL RESPONSIBILITY

·         Discovery Silver Corp. produced its first Environmental, Social and Governance (ESG) report, setting out the Company’s current practices and priorities going forward.  Highlights based on 2020 calendar year include over CAD $1.7M in goods and services purchased from local Mexican businesses; over CAD$1.3M in salaries and benefits paid to local employees; Total workforce of 124 includes 58 employees and 66 contractors, ( Employees: 89% Mexican nationals, 11% Canadian, and Contractors: 98% Mexican nationals, 2% Canadian); Total GHG emissions of 167 tonnes of CO2 equivalent; Total water withdrawal of 36,017 m3 and total water discharged of 36,007 m3; and Zero fatalities and only 5 first-aid incidents (Cordero project, Chihuahua).

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 quartz hydrothermal breccia containing malachite stains in an epithermal quartz vein system in a project in Sonora, Mexico.  Photo by Miguel A Heredia.

The Mining and Exploration News in Mexico: Highlights on the Third Week of October, 2021. 

Boiling texture in a quartz vein.

By Miguel A Heredia

During the 42nd week of the year (October 18th to October 24th, 2021), at least 21 press releases were announced by companies working in Mexico and 14 news published by the media, with nine commenting on Mexican issues, six reporting resources and developments, six announcing financial issues, four communicating production and financial results, four informing on exploration results, four discussing social issues, and two disclosing deals and corporate issues.  ON MEXICO ISSUES, Governors of Guerrero, Chihuahua, and Durango showed their support for the mining industry during the inauguration of the XXXIV International Mining Convention in Acapulco. Jaime Gutiérrez Núñez, president of The Mining Chamber of Mexico (CAMIMEX) stated that the uncertainty will affect investments in the mining sector in Mexico. Tonatiuh Herrera Gutiérrez, Undersecretary of Promotion and Environmental Regulations of the Secretariat of the Environment and Natural Resources (SEMARNAT), warned that the agency will keep consultations on land use for the mining activity. Miguel Ángel Riquelme Solís, governor of Coahuila State and Grupo Mexico signed an agreement to regularize properties in the Carboniferous Region of Coahuila. The Mining Commission of the State Congress was installed in Sonora. Octavio Alvídrez, CEO of the Mexican precious metals Fresnillo plc stated that mining in Mexico currently has an “unfavorable” environment due to recent government policies. The Mexican Geological Service (SGM) will invest MXP $55.2M between this year and the next in the exploration of lithium. Karen Flores, director of the Mining Chamber of Mexico (CAMIMEX) stressed that due to lack of mineral concessions the mining industry in Mexico loses USD $25B. Sergio Almazán, president of the Association of Mining Engineers, Metallurgists and Geologists of Mexico (AIMMGM), highlighted the relevance of the mining industry for the country’s economy in the inauguration of the XXXIV International Mining Convention in Acapulco. ON EXPLORATION, In Baja California, One World Lithium announced that drill hole # 4 collared at its Salar del Diablo project, reached a total depth of 518m. In Sonora, Benjamin Hill reported that it has completed the location of 15 drill holes for the upcoming inaugural drill program at its Benjamin Hill project. In Nayarit, Sierra Madre released results of the first 11 trenches at its Tepic project. In Jalisco, Stroud provided an update of its 2021 Phase I drilling program conducted at its Santo Domingo project.  ON MINING, Excellon reported Q3, 2021 production results from its Platosa mine in Durango.  Mexus Gold announced a revenues increase at its Santa Elena mine in Sonora. Santacruz Silver announced Q3, 2021 production results from their Zimapan and Rosario mines located in Hidalgo and San Luis Potosi respectively. Sierra Metals reported Q3, 2021 production results from their Bolivar and Cusi mines in Chihuahua. ON FINANCING, Azucar Minerals granted stock options to a director to purchase 400K common shares at a price of $0.09 per share (El Cobre project, Veracruz). Barksdale provided an update regarding the secured loans that the company holds in Regal Resources (San Javier, Sonora). Canasil announced an initial non-brokered private placement for gross proceeds of up to $500K and later on it increased to $650K with additional $150K via flow-through shares (Nora project, Durango). Heliostar closed the first tranche of a non-brokered private placement offering for gross proceeds of $1,300,225.50 (Cumaro project, Sonora). Xali announced a non-brokered private placement for gross proceeds of approximately CAD $500K (El Oro project, State of Mexico). ON RESOURCES AND DEVELOPMENT, Chesapeake announced that a 16 holes infill drill program will commence in November at its Metates project in Durango.  Discovery Silver reported an updated Mineral Resource Estimate on its flagship Cordero project in Chihuahua State. Fabled released results from three holes collared at its Santa Maria project, Chihuahua.  Golden Minerals presented results from 25 recently completed RC holes at its Rodeo property in Durango. Impact Silver released results from and underground development drilling program of its Guadalupe mine in the Zacualpan mining district in the State of Mexico. Silver Tiger announced high grade results from its ongoing drilling program conducted at its El Tigre project in Sonora. ON DEALS AND CORPORATE ISSUES, Minera Gorrión S.A. de C.V. , a subsidiary company of Almaden Minerals Ltd., announced the completion of a Human Rights Impact Assessment (HRIA) for the Ixtaca mine development project in Puebla. One World Lithium announced the engagements of two new consultants (Salar del Diablo project, Baja California). ON SOCIAL RESPONSIBILITY, José Rosas Aispuro, Governor of Durango, highlighted that mining is synonymous with respect for human rights and has to be synonymous with respect for the environment. New Zealand Ambassador proposes to the Mexico mining industry to work with social inclusion and sustainability. The VP in Mexico of Torex Gold reiterated that its subsidiary Minera Media Luna is committed to the economic and social progress of the communities at the Guerrero mining corridor. Mulatos Mine of Alamos Gold, announced that it has reduced its lighting consumption by 70%, 10% in diesel and 25% in CO2 emissions.

ON MEXICO ISSUES

  • Governors of Guerrero, Chihuahua, and Durango showed their support for the mining industry during the inauguration of the XXXIV International Mining Convention in Acapulco because it represents a lever for the economic development of the country. They promised to respect the rule of law to promote the investment in the sector that generates jobs and benefits to the communities where it operates.
  • Jaime Gutiérrez Núñez, president of The Mining Chamber of Mexico Camimex stated that the suspension of new mining concessions as well as the effects of the possible approval of the electricity reform and the heavy tax burden is generating strong uncertainty in the mining sector in Mexico.
  • Tonatiuh Herrera Gutiérrez, Undersecretary of Promotion and Environmental Regulations of the Secretariat of the Environment and Natural Resources (SEMARNAT), warned that the agency will keep consultations on land use for mining activity. Jaime Gutierrez Núñez, president of CAMIMEX responded that the companies affiliated to said organization do not oppose to the consultations on land use for mining activity, but emphasized that times should be established for conducting such consultations. Likewise, the Director of CAMIMEX, Karen Flores Arredondo stressed that “the rules of the game” must be clear and based on the General Consultation Law.
  • Miguel Ángel Riquelme Solís, governor of Coahuila State and Grupo Mexico signed an agreement to regularize properties in the Carboniferous Region of Coahuila. This regulation agreement represents legal certainty for more than 400 families in the Carboniferous Region.
  • The Mining Commission of the State Congress was installed, chaired by the deputy for Morena, Próspero Valenzuela Muñer to meet the demands and open a space for dialogue with the mining sector in Sonora. In that sense, he mentioned that it is important that said commission lays the foundations for the detonation of economic development and well-being in Sonora, taking advantage of the fact that this entity constitutes one of the main mining states in the country.
  • Octavio Alvídrez, CEO of the Mexican precious metals Fresnillo plc stated that mining in Mexico currently has an “unfavorable” environment due to recent government policies. President Andrés Manuel López Obrador has been criticized by the mining industry for his policy of not granting new concessions, as well as for what he has described as unprecedented regulatory delays. The president further fueled industry concerns by recently proposing to Congress a controversial energy constitutional reform that rejects concessions for Lithium.
  • The Mexican Geological Service (SGM) will invest MXP $55.2M between this year and the next in the exploration of lithium  with a view to finding an economically viable deposit, informed its director, Flor de María Harp. Exploration work will be carried out in 52 areas during 2021 and in another 30 in 2022. She explained that the country needs hard data so that we are not talking about what we believe, imagine or assume, but about data that have a technical basis. The official insisted that in Mexico expectations have been generated around lithium that is not real, because there is still no hard data on the potential of the mineral.
  • Karen Flores, director of the Mining Chamber of Mexico (CAMIMEX) stressed that due to lack of mineral concessions the mining industry in Mexico loses USD $25B with the consequent absence of jobs generation and the fiscal contribution. So far in this six-year term, no new concessions have been granted, in addition to the fact that there are procedures stopped that have also impacted on the continuity of some mining projects.
  • Sergio Almazán, president of the Association of Mining Engineers, Metallurgists and Geologists of Mexico (AIMMGM), highlighted the relevance of the mining industry for the country’s economy in the inauguration of the XXXIV International Mining Convention in Acapulco. CAMIMEX, in its 2020 report stated that the industry currently generates around 408,000 direct jobs, plus almost 2 million indirect jobs. It means that many Mexican families literally live from mining. Mining activity stands out as the fifth earner of foreign currency to the country. He also highlighted that Mexican mining is a formal, modern, sustainable, safe, fiscally responsible industry, with competitive salaries and high quality standards.

ON EXPLORATION

  • One World Lithium Inc., announced that drill hole # 4 collared at its Salar del Diablo project in Baja California, reached a total depth of 518m and that sampling has been completed between 331 to 338m and a second zone between 460 to 518m. Samples have been submitted to the lab and results will be released once are received.
  • Benjamin Hill Mining Corp., announced that it has completed the location of 15 drill holes for the upcoming inaugural drill program at its Benjamin Hill project in Sonora. The goal of the drill program is to better understand the behavior of the mineralization at depth and drill-test the continuity of high-grade mineralization structures that are thought to be open down dip and on strike. 
  • Sierra Madre Gold and Silver Ltd., released results of the first 11 trenches at its Tepic project. Highlights include TZ005 with 68 g/t Ag and 0.3 g/t Au (91 g/t AgEq) over 10.5m; TZ011 with 39 g/t Ag and 1.06 g/t Au (119 g/t AgEq) over 10.1m,; and TZ 011A with 54 g/t Ag and 6.52 g/t Au (43 g/t AgEq) over 9.2m.
  • Stroud Resources Ltd., provided an update of its 2021 Phase I drilling program conducted at its Santo Domingo project in Jalisco. Stroud has completed 14 diamond holes for a total of 5,725m with the aim to explore the extent of known vein-hosted silver mineralization that run parallel to the existing La Raya and Guadalupe vein systems. Sampling and assaying of the drill core has begun and results will be released once they become available.

ON MINING

  • Excellon Resources Inc., reported Q3, 2021 production results from its Platosa mine in Durango. The company mined 21,592 tonnes and milled 21,302 tonnes of 526 g/t Ag, 4.9% Pb, and 5.4% Zn with metallurgical recoveries of 90.9%, 81.2%, and 78.3% respectively to produce 326.7K Oz Ag, 1.87M Lb Pb, and 1.98M Lb Zn (521.2K Oz AgEq).
  • Mexus Gold US announced a revenues increase at its Santa Elena mine in Sonora. “Mineralized material run through the crushing circuit and placed on the heap leach pad is currently assaying at an average of 4.6 g/t Au and 8 g/t Ag. The company will begun a new round of blast hole drilling on October 18th. These efforts will produce 15,000 tons of high-grade gold material for processing through the crushing/leaching circuit”. These efforts indicate a potential 1.5M Oz Au resource on the property.
  • Santacruz Silver Mining Ltd., announced Q3, 2021 production results from their Zimapan and Rosario mines located in Hidalgo and San Luis Potosi respectively. At Zimapan mine, Hidalgo, the company milled and processed 186,642 tonnes of 73 g/t Ag, 0.6% Pb, 2.53% Zn, and 0.35% Cu to produce 313.5K Oz Ag, 2.26M Lb Pb, 8.39M Lb Zn, and 1.1M Lb Cu (867.2K Oz AgEq). At Rosario mine, San Luis Potosi, the company milled and processed 2,306 tonnes of 41 g/t Ag, 0.15 g/t Au, 0.2% Pb, and 1.2% Zn to produce 2,548 Oz Ag, 8,960 Lb Pb, and 53.8K Lb Zn (5,698 Oz AgEq).
  • Sierra Metals Inc., reported Q3, 2021 production results from their Bolivar and Cusi mines in Chihuahua. At Bolivar mine, Chihuahua, the company processed 364,941 tonnes of 0.61% Cu, 11 g/t Ag, and 0.1 g/t Au at metallurgical recoveries of 73.06%, 71.97%, and 73.23% respectively to produce 3.6M Lb Cu, 95K Oz Ag, and 899 Oz Au (796K Oz AgEq or 4.53M Lb CuEq). At Cusi mine, Chihuahua, Sierra Metals processed 61,071 tonnes of 161 g/t Ag, 0.18 g/t Au and 0.6% Pb at metallurgical recoveries of 82.63%, 55.89%, and 82.64% respectively to produce 261K Oz Ag, 193 Oz Au and 695K Lb Pb (306K Oz AgEq).

ON FINANCING

  • Azucar Minerals Ltd., granted stock options to a director to purchase 400K common shares at a price of $0.09 per share, which expire on February 28, 2024 (El Cobre project, Veracruz).
  • Barksdale Resources Corp., provided an update regarding the secured loans that the company holds in Regal Resources Inc. Regal owes approximately $1.8M to Barksdale. Regal has until October 24, 2021 to file a cash-flow forecast that needs to be reviewed and signed by its proposal trustee.  If Regal is unable to repay its creditors or fails to put forward a proposal that is accepted by the creditors, it will enter bankruptcy (San Javier, Sonora).
  • Canasil Resources Inc., announced an initial non-brokered private placement of up to 4M units at a price of $0.125 for total gross proceeds of up to $500K. In addition to the non-brokered private placement the company will include up to 1M flow-through shares at $0.15 per flow-through share for a total of $150K. Canasil will use the gross proceeds from the non-brokered private placement to fund drill programs of their projects in Durango and Zacatecas (Nora and La Esperanza projects, Durango-Zacatecas).
  • Heliostar Metals Limited, closed the first tranche of a non-brokered private placement offering of up to 5,714,285 units at a price of $0.70 per unit for gross proceeds of $1,300,225.50. Part of the gross proceeds will be used to advance their Mexican projects, focusing primarily on the proposed Cumaro drill program in Q4, 2021, as well as for working capital and general corporate purposes.
  • Xali Gold Corp., announced a non-brokered private placement for gross proceeds of approximately CAD $500K. “Approximately CAD $250K of the gross proceeds will be used to further our permitting and targeting for drilling programs on our gold-silver projects and approximately CAD $250K will be used for working capital and general corporate purposes”  (El Oro project, State of Mexico).

ON RESOURCES AND DEVELOPMENT

  • Chesapeake Gold Corp., announced that a 16 holes infill drill program will commence in November at its Metates project in Durango. This infill program will consists of 6,700m with holes ranging from 250 to 650m depth, and will be drilled with the same orientation to maintain consistency with earlier drilling. “The infill drill program will further define the geological structural controls, expand drill density, and provide additional composite metallurgical samples for variability testing”.
  • Discovery Silver Corp., reported an updated Mineral Resource Estimate on its flagship Cordero project in Chihuahua State. The company reported Measured + Indicated Resources for 541M tonnes with grades of  20 g/t Ag,  0.6 g/t Au, 0.3% Pb, and 0.5% Zn (48 g/t AgEq), for a total of 344M Oz Ag, 1.04M Oz Au, 3,424M Lb Pb, and 6,132M Lb Zn (837M Oz AgEq), and Inferred Resources for  108M tonnes of 14 g/t Ag, 0.03 g/t Au, 0.2% Pb, and 0.4% Zn (34 g/t AgEq) for a total of 49M Oz Ag, 99K Oz Au, 451M Lb Pb, and 909M Lb Zn (119M Oz AgEq). The Resource is pit-constrained with an estimated waste-to-ore ratio of 1.1 and is supported by 224,000m of drilling in 517 drill holes and reinterpreted structural and geological models of the deposit. 87% of the contained metal is in the Measured and Indicated category.
  • Fabled Silver Gold Corp., released results from three holes collared at its Santa Maria project, Chihuahua. The most interesting drill interval was encountered in hole SM20-35 with 18.80m of 0.25 g/t Au, 9 g/t Ag (22 g/t AgEq), 0.2% Pb, and 0.5% Zn, including 0.50m of 1.1 g/t Au and 16 g/t Ag (73 g/t AgEq), 0.5% Pb, and 1% Zn, plus 1.65m of 1.93 g/t Au and 32 g/t Ag (131 g/t AgEq), 0.8% Pb, and 2% Zn. With these three holes concluded the Phase 1 exploration drill program and the plan now is to be focused on definition drilling to outline the previously discovered zones or trends. The company mentioned that Au is related to the northwest trending mineralized diorite dike encountered in present drilling. “The previous first modeled diorite dike was over 440 meters and now has been extended to a minimum of 1,000 meters in strike length and 400 meters at depth, open in all directions”.
  • Golden Minerals Company presented results from 25 recently completed RC holes at its Rodeo property in Durango. The company has drilled 47 RC holes totaling 3,187m, focusing on resource expansion and exploration of several targets located adjacent to the open pit. Highlights from the RC drill program include hole RRC_021_018 with 1 g/t Au and 5 g/t Ag over 54m, including 2.3g/t Au and 5 g/t Ag over 18m; RRC_021_020 with 1.7g/t Au and 12 g/t Ag over 26m, including 2.4 g/t Au and 16 g/t Ag over 8m, hole RRC_021_021 with 1.3 g/t Au and 17 g/t Ag over 56m, including 2.2 g/t Au and 18 g/t Ag over 24m: hole RRC_021_022 with 1g/t Au and 4 g/t Ag over 56m, including 3.9 g/t Au and 5 g/t Ag over 8m; and hole RRC_021_025 with 1.3 g/t Au and 6 g/t Ag over 52m, including 2.9 g/t Au and 11 g/t Ag over 18m.
  • Impact Silver Corp., released results from an underground development drilling program of its Guadalupe mine in the Zacualpan mining district in the State of Mexico. High grade drill intercepts were encountered in holes MPZ-UG-023-21 with 464 g/t Ag, 0.3%Pb, and 0.8% Pb over a true width (TW) of 6.04m at Carolina Vein and 300 g/t Ag, 0.3% Pb and 1.2% Zn over a TW of 3.44m at Dolores Bajo Vein; hole MPZ-UG-024-21 with 2,186 g/t Ag, 1.7% Pb, and 3.4% Zn over a TW of 3.38m at Carolina Vein; hole MPZ-UG-025-21 with 425 g/t Ag, 0.3% Pb, and 0.8% Zn over a TW of 3.47m at Carolina Vein and 527 g/t Ag, 0.9% Pb, and 1.9% Zn over a TW of 1.63m at Dolores Bajo Vein; hole MPZ-UG-028-21 with 486 g/t Ag, 0.3% Pb, and 1.2% Zn over a TW of 1.57m at La Rata Vein and 232 g/t Ag, 0.5% Pb, and 1% Zn over a TW of 5.94m at Kena Vein; and hole MPZ-UG-029-21 with 161 g/t Ag, 0.1% Pb, and 0.3% Zn over a TW of 2.12m at Carolina Vein, 269 g/t Ag, 0.2% Pb, and 0.4% Zn over a TW of 3.57m at Carolina Bajo Vein, and 427 g/t Ag, 0.5% Pb, and 0.6% Zn over a TW of 3.12m at Dolores Vein.
  • Silver Tiger Metals Inc., announced high grade results from its ongoing drilling program conducted at its El Tigre project in Sonora. Highlights include hole ET 21-244 collared in the Sooy Vein with 0.16 g/t Au, 455 g/t Ag, 0.12 % Cu, 0.3% Pb, and 0.2% Zn (491 g/t AgEq) over 7.5m, including 0.33 g/t Au, 1,073 g/t Ag,  0.3% Cu, 0.8% Pb, and 0.3% Zn (1,156 g/t AgEq) over 2.5m, including 1.3 g/t Au, 3,531 g/t Ag, 1.06 % Cu, 3.6% Pb, and 1.2% Zn (3,856 g/t AgEq) over 0.5m, plus an interval in the FW zone of 0.13 g/t Au, 593 g/t Ag, 0.13% Cu, 0.3% Pb, and 0.06% Zn (624 g/t AgEq) over 1.8m, including 0.4 g/t Au, 2,030 g/t Ag, 0.46% Cu, 1% Pb, and 0.2% Zn (2,133 g/t AgEq) over 0.5m; and hole ET 21-243 collared in the Benjamin Vein with 0.02 g/t Au, 92 g/t Ag, 0.07% Cu, 0.1% Pb, and 0.1% Zn (107 g/t AgEq) over 6.8m, including 0.02 g/t Au, 138 g/t Ag, 0.07% Cu, 0.1% Pb, and 0.1% Zn (155 g/t AgEq) over 4.3m, including 0.05 g/t Au, 864 g/t Ag, 0.54% Cu, 0.5% Pb, and 1% Zn (965 g/t AgEq) over 0.5m.

ON DEALS AND CORPORATE ISSUES

  • Minera Gorrión S.A. de C.V. , a subsidiary company of Almaden Minerals Ltd., announced the completion of a Human Rights Impact Assessment (HRIA) for the Ixtaca mine development project in Puebla. The HRIA is one of the most innovative, comprehensive and proven effective tools worldwide to estimate the potential impacts and corresponding mitigation measures in favor of the human rights of the communities located within the area of ​​influence of this productive project. Minera Gorrión reiterates its commitment to the exercise of modern and avant-garde mining, absolutely committed to respecting Human Rights, caring for the environment and creation of opportunities for the communities of Ixtacamaxtitlán always with cultural relevance.
  • One World Lithium Inc., announced the engagements of Rayleigh Capital and J&L Strategic Solutions LLC,  that offer different consulting services that are mutually beneficial to increase global market awareness and different financing opportunities that are less reliant on equity offerings.  Both consultants are very familiar with green technologies  (Salar del Diablo project, Baja California).

ON SOCIAL RESPONSIBILITY

  • José Rosas Aispuro, Governor of Durango, highlighted that mining is synonymous with respect for human rights and has to be synonymous with respect for the environment.
  • Sara Meymand, New Zealand Ambassador proposed to the Mexico mining industry to work with social inclusion and sustainability. She assured during the XXIV edition of the Acapulco Mining Convention that working in inclusion development and sustainability put up the mining activity internationally, focused on the preservation of the environment, dialogue with communities, gender perspective, use of new technologies, job creation and economic growth. She also stressed the importance of promoting a social license in the mining industry, which will allow companies to act with responsibility, commitment and subject to the care of the environment.
  • The vice president in Mexico of Torex Gold Resourcers Inc., Faysal Rodríguez Valenzuela reiterated that Minera Media Luna (MML) maintains its commitment to the social and economic development of the 11 communities that make up the Guerrero mining corridor, located between the municipalities of Cocula and Eduardo Neri. He also pointed out that the social investment of each year is intended to help improve people’s quality of life and work towards the fulfillment of the sustainable development objectives.
  • Mulatos Mine of Alamos Gold, reduced its power consumption on lighting by 70%, 10% in diesel and 25% in CO2 emissions. Alamos Gold seeks to contribute to the care of the environment reducing energy consumption and CO2 emissions into the atmosphere.

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

On the picture above, boiling texture in an epithermal quartz vein system in a project in Sonora, Mexico.  Photo by Miguel A Heredia.

The Mining and Exploration News in Mexico: Highlights on the First Week of October, 2021. 

Phyllic alteration and Cu mineralization

By Miguel A Heredia

During the 40th week of the year (October 04th to October 10th, 2021), at least 26 press releases were announced by companies working in Mexico and 3 news published by the media, with nine reporting resources and developments, six communicating production and financial results, four informing on exploration results, four announcing financial topics, three disclosing deals and corporate issues, two commenting on Mexican issues and one discussing social issues.  ON MEXICO ISSUES, Members of the Mining Cluster of Chihuahua met with federal deputies of the Partido Acción Nacional (PAN) to let them know of the importance of mining not only in the state but in the entire country.  President AMLO announced a proposal that would put end the current system of lithium concessions and leave exploration and production in the hands of the State. ON EXPLORATION, In Baja, One World Lithium provided an update of its current drilling program at its Salar del Diablo project. In Sonora, Benjamin Hill provided an update of details on the recently released NI 43-101 report on its Benjamin Hill project.  In Chihuahua, Kootenay reported results from the last six holes collared at its Columba project. In Jalisco, Almadex announced Q4, 2021 plans for its San Pedro project. ON MINING, Endeavour Silver reported Q3, 2021 production results from their Mexican mine operations. Gatos Silver announced Q3, 2021 production results from its 70% owned Cerro Los Gatos mine in Chihuahua. GoGold presented quarterly and year ending September 2021 production results from its Parral Tailings project in Chihuahua. Great Panther announced Q3, 2021 production results from their Topia and Guanajuato Mine Complex mines in Durango and Guanajuato states respectively. McEwen reported Q3, 2021 production results from its El Gallo property in Sinaloa. Torex Gold announced Q3, 2021 production results from its El Limon-Guajes Mine Complex in Guerrero. ON FINANCING, Aztec Minerals announced the arrangement of a non-brokered private placement for gross proceeds of CAD $1.05M (Cervantes project, Sonora). Heliostar announced the commencement of a non-brokered private placement for gross proceeds of up to $2M that later on increased it to a maximum of $4M (Cumaro, Oso Negro and la Lola project in Sonora). Tarachi Gold announced a non-brokered private placement for gross proceeds of up to $500K (Magistral Mill and Tailings project, Durango). ON RESOURCES AND DEVELOPMENT, Almaden announced that it has resumed drilling activities at its Ixtaca project in Puebla. Excellon released results from its underground drilling program conducted at its the Platosa mine in Durango. Fabled reported results from its underground drilling program at its Santa Maria project in Chihuahua.  Golden Tag received approval from the Secretariat of Natural Resources and Environment (SEMARNAT) to build additional 41 drill pads at its San Diego property in Durango. GR Silver completed a 3D resistivity, IP and ground magnetic survey at its Plomosas project in Sinaloa. Impact Silver released results from its underground drilling program at Zacualpan mining district, State of Mexico. Minera Alamos provided an update on the ongoing pit optimization drilling program at its Santana property in Sonora. Silver Dollar received drilling permit for its la Joya project in Durango. Tarachi Gold reported results from the tailings drilling program at its Magistral Mill and Tailings project in Durango. ON DEALS AND CORPORATE ISSUES, Santacruz Mining informed that it is suspending operations at the Rosario Project in San Luis Potosi, and placing it on care and maintenance. Riverside reported on mining claims consolidation and expansion of its the La Union polymetallic project in Sonora. Sailfish entered into a binding letter of intent with 1287398 B.C. Ltd., to create a silver focused exploration and development company (Gavilanes property, Durango). ON SOCIAL RESPONSIBILITY, Fresnillo plc and its subsidiary Minera Penmont delivered an ambulance to representatives of the Red Cross in Caborca, Sonora.

ON MEXICO ISSUE

  • Members of the Mining Cluster of Chihuahua met with federal deputies of the Partido Acción Nacional (PAN) to let them know of the importance of mining not only in the state but in the entire country. Deductions of the mining exploration expenses as well as the electricity reform were some of the issues addressed to the deputies. According to the mining sector, if the electricity reform is approved, it will affect the competitiveness of mining. The Mining Cluster, in communion with government authorities, seeks to generate the development of local supply, as well as attracting greater mining investment in the state.
  • President AMLO announced a proposal that would put end the current system of lithium concessions and leave exploration and production in the hands of the State. However, the owner of the USD $420M project Bacanora Lithium stated that the Mexican government’s plans to bring lithium resources under state control will not affect progress in Sonora, since the new reforms will not affect lithium licenses already granted to private companies, as long as exploration work has already started and all licensing requirements have been met.

ON EXPLORATION

  • One World Lithium Inc., provided an update of its current drilling program at its Salar del Diablo project in Baja. The company announced that hole DDH-4 reached a depth of 381m on October 2, 2021 with an expected total depth of 600m. If the results of DDH-4 warrant it, other boreholes will be drilled in the area.
  • Benjamin Hill Mining Corp., provided an update of details on the recently released NI 43-101 report on its Benjamin Hill project in Sonora. “Detailed mapping at 1:1,000 scale has indicated the presence of a large magmatic-hydrothermal system, including mineralized structures, stockworks, sheeted veins, alteration halos, all of which are hosted in granitoids, an eroded skarn system, a volcaniclastic sequence, and volcanic rocks, as well local orogenic quartz veins. This large hydrothermal system could be co-genetic with a bimodal dike swarm mapped on the property and related to a buried fertile plutonic system, suggesting that geological structures and mineralization seen at surface are indicative of a Cu-Au porphyry system at depth”. Recommended activities to be conducted at the property over the next 2-3 months are completing the mapping and sampling on the areas of Caracahui, la Salada, Caracahui Norte and the Sonora Copper; mapping and channel sampling of the Cascabel and Guadalupe adits; dating studies of the plutonic rocks, prospection of the new areas generated by geochemistry (La Falsa, San Felix, and La Berrenda); and channel sampling on the Sonora Copper adit.
  • Almadex Minerals Ltd announced Q4, 2021 plans for its San Pedro project in Jalisco. The company reported that the property is fully permitted and is currently mobilizing a team and rig to site to conduct a drill testing prior to year-end.
  • Kootenay Silver Inc., reported results from the last six holes collared at its Columba project in Chihuahua. The company announced the best drill intercept to date in hole CDH-21-103 with 333 g/t Ag over 44m, including 805 g/t Ag over 17m, including 1,201 g/t Ag over 11m, including 2,035 g/t Ag over 6m, and a high of 9,840 g/t Ag over 0.92m.

ON MINING

  • Endeavour Silver Corp., reported Q3, 2021 production results from their Mexican mine operations. The next table shows the production for the third quarter 2021 by mine:
  • Gatos Silver Inc., announced Q3, 2021 production results from its 70% owned Cerro Los Gatos mine in Chihuahua. The company mined 242,899 tonnes and milled 234,054 tonnes of 256 g/t Ag, 0.3 g/t Au, 2.35% Pb, and 4.1% Zn with metallurgical recoveries of 89%, 63%, 91%, and 74% respectively, to produce 1.7M Oz Ag, 1.3K Oz Au, 10.8M Lb Pb, and 13.5M Lb Zn.
  • GoGold Resources Inc., presented quarterly and year ending September 2021 production results from its Parral Tailings project in Chihuahua. GoGold produced 221.2K Oz Ag, 3,437 Oz Au and 309.1K Lb Cu (526,044 Oz AgEq) in the quarter period for a total of 1.14 M Oz Ag, 13.45K Oz Au, and 1.05M Lb Cu (2.27M Oz AgEq) in the full year ending in September 2021.
  • Great Panther Mining Limited announced Q3, 2021 production results from their Topia and Guanajuato Mine Complex mines in Durango and Guanajuato states respectively. At Topia, Durango, the company processed 14, 433 tonnes of 373 g/t Ag, and 0.64 g/t Au with metallurgical recoveries of 93.7% and 72.2% respectively, to produce 162.2K Oz Ag, 215 Oz Au, 600.3K Lb Pb, and 777.3K Lb Zn (242K Oz AgEq or 2,847 Oz AuEq). At Guanajuato Mine Complex, Guanajuato, Great Panther processed 41,343 tonnes of 102 g/t Ag, and 1.64 g/t Au with metallurgical recoveries of 87.1% and 86.4% respectively, to produce 118K Oz Ag and 1,883 Oz Au (278K Oz AgEq or 3,271 Oz AuEq). “The Company has not yet been granted a permit from the Comisión Nacional del Agua (CONAGUA) to expand the TSF at the Guanajuato Mill Complex, which only has sufficient capacity to continue milling operations until December 2021. While the Company continues to proactively engage CONAGUA to expedite the permitting process, the operating assumption is that a permit will not be forthcoming and numerous longer-term solutions are currently being assessed, including processing ore at third-party facilities”.
  • McEwen Mining Inc., reported Q3, 2021 production results from its El Gallo property in Sinaloa. In Q3, El Gallo produced 560 Gold Equivalents Ounces (GEOs) from residual leaching of the heap leach pad.
  • Torex Gold Resources Inc., announced Q3, 2021 production results from its El Limon-Guajes Mine Complex in Guerrero. The company reported a gold production of 111,220 Oz. The company sold this production at an average realized gold price of USD $1,785 per Oz.

ON FINANCING

  • Aztec Minerals Corp., announced the arrangement of a non-brokered private placement for gross proceeds of CAD $1.05M. Part of the net proceeds will be used to conduct exploration work at its Cervantes porphyry Au-Cu project in Sonora.
  • Heliostar Metals Limited announced the commencement of a non-brokered private placement for gross proceeds of up to $2M that later on was increased to a maximum of $4M. Part of the gross proceeds will be used to conduct exploration work at the Cumaro, Oso Negro and la Lola project in Sonora.
  • Tarachi Gold Corp., announced a non-brokered private placement for gross proceeds of up to $500K. Proceeds of the private placement will be used for general working capital. (Magistral Mill and Tailings project, Durango).

ON RESOURCES AND DEVELOPMENT

  • Almaden Minerals Ltd., announced that it has resumed drilling activities at its Ixtaca project in Puebla. The company also informed that all fieldwork has been conducted in compliance with the Mexican Institute for Social Security (IMSS) since the Company’s Covid-19 protocols detected several COVID-19 cases amongst members of the Company’s local staff. All these individuals were immediately quarantined and supported by the company and one was hospitalized, who unfortunately passed away despite all best efforts. The company has established a COVID Committee that meets weekly to assess the COVID- 19 situation, ensure commitment to company protocols, and discuss opportunities for improvement in the protocols.
  • Excellon Resources Inc., released results from its underground drilling program conducted at its the Platosa mine in Durango. Highlights include hole EX21UG90 with 1,570 g/t Ag, 10.4% Pb, 29.6% Zn, and 0.1 g/t Au (2,860 g/t AgEq) over 7.5m, including 2,424 g/t Ag, 14% Pb, and 35% Zn (3,987 g/t AgEq) over 3.4m, plus 479 g/t Ag, 4.6% Pb, and 2% Zn (667 g/t AgEq) over 2.5m, including 1,758 g/t Ag, 16.5% Pb, and 7.5% Zn (2,441 g/t AgEq) over 0.5m; and hole EX21UG687 with 1,214 g/t Ag, 8.3% Pb, and 16.9% Zn (2,009 g/t AgEq) over 3.1m, including 2,530 g/t Ag, 16.7% Pb, and 19.3% Zn (3,623 g/t AgEq) over 1.2m. “Drilling from underground continues to define and expand known mineralization ahead of production at the 623 and NE-1S mantos. Drilling at Platosa will continue to target areas ahead of production and test the extent of mineralization around mine workings”. 
  • Fabled Silver Gold Corp., reported results from its 1,200m underground drilling program at its Santa Maria project in Chihuahua. Hole SMUG21-16 intersected 0.21 g/t Au,  120 g/t Ag, 0.1% Pb, 0.4% Zn, and 0.01% Cu (131 g/t AgEq) over 5.1m, including 0.6 g/t Au, 387 g/t Ag, 0.35% Pb, 0.6% Zn, and 0.01% Cu (418 g/t AgEq) over 1.3m. Hole SMUG21-17 drilled from the same setup but with different dip angle intersected 1.07 g/t Au, 106 g/t Ag, 0.05% Pb, and 0.2% Zn (161 g/t AgEq) over 3.95m, including 6.46 g/t Au, 490 g/t Ag, 0.3% Pb, 0.45% Zn, and 0.01% Cu (822 g/t AgEq) over 0.60m.
  • Golden Tag Resources Ltd., received approval from the Secretariat of Natural Resources and Environment (SEMARNAT) to build additional 41 drill pads at its San Diego property in Durango, increasing the total number of permissible pads to 55. The new permit is valid for a period of 4 years.
  • GR Silver Mining Ltd., completed a 3D resistivity, IP and ground magnetic survey at its Plomosas project in Sinaloa. This geophysical survey links San Marcial resource with the recent GAP area discovery and the San Juan resource. Elevated chargeability has been identified in the vicinities of San Marcial resource area; the magnetic survey shows several oriented magnetic features; and the resistivity data shows that important parts of the Plomosas project are separated into structural blocks controlled by NW-trending faults and mineralized structures. Early-stage field assessment of Ag-Au targets is underway and several of these are currently in the drill planning stage.
  • Impact Silver Corp., released results from its underground drilling program in the Lipton area of its Guadalupe Mine at Zacualpan mining district, State of Mexico. Significant drill intercepts were encountered in hole MPZ-UG-001-21 with 327 g/t Ag, 0.3% Pb, and 0.6% Zn over a true width (TW) of 2.5m; hole MPZ-UG-002-21 with 691 g/t Ag, 0.3%, and 0.7% over a TW of 1.29m; hole MPZ-UG-006-21 with 443 g/t Ag, 0.2% Pb, and 0.3% Zn over a TW of 1.90m; and hole MPZ-UG-014-21 with 472 g/t Ag, 0.2% Pb, and 0.5% Zn over a TW of 1.69m. The drill holes covered the vein systems over a strike length of 430m and a vertical distance of 200m.
  • Minera Alamos Inc., provided an update on the ongoing pit optimization drilling program at its Santana property in Sonora. Drilling highlights include hole S20-147D with 0.69 g/t Au over 248.8m from surface and ending in mineralization; hole S20-149D with 0.77 g/t Au over 152.7m from surface, including 1.39 g/t Au over 56.2m; and hole S21-160D with 0.51 g/t Au over 242.7m from 41.9 down hole.   
  • Silver Dollar Resources Inc., received permit for the next phase of drilling at its la Joya project in Durango. The company is cashed-up and eager to restart exploration drilling for the first time in over seven years.
  • Tarachi Gold Corp., reported results from the tailings drilling program at its Magistral Mill and Tailings project in Durango. A total of 37 vertical auger holes were completed to depths ranging from 1.3 to 14.5m with an average depth of 6.6m. The 171 gold tailings samples ranged in grade from 0.89 to 4.12g/t with an average of 2.04g/t Au.

ON DEALS AND CORPORATE ISSUES

  • Santacruz Silver Mining Ltd., informed that it is suspending operations at the Rosario Project in San Luis Potosi, and placing it on care and maintenance. This decision was made following an extensive review by management of the Rosario project operations and strategic options available including the potential sale of the operation.
  • Riverside Resources Inc., reported on mining claims consolidation and expansion of its the La Union polymetallic project. The acquisition of the La Famosa and Plomito small internal claims provided Riverside access to high-grade small scale mine properties increases its property total area to over 2,604 hectares. Riverside optioned these properties over 4 years term staged cash payments without any NSR.  At La Famosa, Riverside can earn 100% of interest in the property by making a total cash payment of USD $175K in staged cash payments starting with USD $10K in the first year anniversary, $USD 15K in the second year, USD $25 in the third year, USD $50K in the fourth year, and a final cash payment of USD $75,000. At Plomito, Riverside can earn 100% interest in the property by making a total cash payment of USD $165K in staged cash payments, starting with USD $10K in the first year anniversary, $USD 15K in the second year, USD $25 in the third year, USD $40K in the fourth year, and a final cash payment of USD $75,000.
  • Sailfish Royalty Corp., entered into a binding letter of intent with 1287398 B.C. Ltd., to create a focused exploration and development company (Pubco or Sailfish Silver as the proposed transaction). The plan is to transfer the Gavilanes Silver Project to Pubco in exchange for shares of Pubco.  

ON SOCIAL RESPONSIBILITY

  • Fresnillo plc and its subsidiary Minera Penmont delivered an ambulance to representatives of the Red Cross in Caborca, Sonora. With this action, the Mexican company strengthens the vehicle fleet of the health institution that is responsible for protecting the health of the people of Caborca.

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 phyllic alteration with Cu mineralization in a prospect in Sonora, Mexico.  Photo by Miguel A Heredia.

The Mining and Exploration News in Mexico: Highlights on the Second Week of September, 2021.

Calcite veinlets in an oxidized siltstone-sandstone sequence

The Mining and Exploration News in Mexico: Highlights on the Second Week of September, 2021.

By Miguel A Heredia

During the 35th week of the year (September 6th to September 12th, 2021), at least 23 press releases were announced by companies working in Mexico and 6 news published by the media, with fourteen reporting resources and developments of their properties, eight informing on exploration results, five commenting on Mexican issues, one  communicating production and financial results, and one discussing social issues.  ON MEXICO ISSUES, the National Autonomous University of Mexico (UNAM) and the Mexican Mining Chamber (CAMIMEX) signed a collaboration agreement to promote research, scientific-technical advice and the training of human resources related to the mining sector. Mining companies in Mexico increased their consumption of clean energy from 14 to 31% from 2019 to 2020. Silver production in Mexico was led by the companies Fresnillo plc, Newmont and Grupo México in 2020, reported CAMIMEX. The Mexican Geological Service (SGM) has detected 14 points to explore for lithium carbonate in Sonora. The head of CAMIMEX stated that Mexican mining companies face “major delays” with environmental and water permits. ON EXPLORATION, In Sonora, Benjamin Hill released assay results at its Benjamin Hill property, Colibri completed an IP survey and applied for a drill permit on its Evelyn project, and along with its partner Silver Spruce informed on exploration results at their Mezquite, Jackie and Diamante properties. In Chihuahua, Reyna Silver presented results from the first seven holes collared at its Batopilas property. In Nayarit, Sierra Madre announced results from its confirmation drilling program at its Tepic project. In Zacatecas, Defiance Silver released drill results from its ongoing drilling program at its San Acacio project.  ON MINING, Minera Alamos provided an update on the ongoing ramp up of mining operations at its Santana project in Sonora.  ON FINANCING, no relevant news.  ON RESOURCES AND DEVELOPMENT, Almaden provided an update on its current drilling program at the Ixtaca project in Puebla. Coeur provided an update of its ongoing infill and expansion drilling program at its Palmarejo property in Chihuahua.  Discovery Silver reported positive results from metallurgical test work at its Cordero property in Chihuahua. Endeavour completed a Feasibility Study (FS) on its Terronera property in Jalisco. Fabled announced additional results from its 1,200m drilling program conducted at its Santa Maria property in Chihuahua. GoGold released results from five holes drilled at its Los Ricos project in Jalisco.  Gold Resource confirmed down-dip extension of the Switchback Vein System at its Arista mine, and commenced process of ramping up activities at its Don David mine in Oaxaca. Golden Tag released results from its drilling program conducted at its San Diego property in Durango. GR Silver presented results from the exploration program conducted on the GAP area located between the San Juan and San Marcial areas in Sinaloa. Prime Mining released results from its phase 1 drilling program conducted at its Los Reyes property in Sinaloa.  SilverCrest announced infill and expansion drill results at its Las Chispas property in Sonora. ON DEALS AND CORPORATE ISSUES, no relevant news. ON SOCIAL RESPONSIBILITY, Fresnillo plc, through Minera Juanicipio promotes the economy of the communities of Carrillo and Nuevo Mexico in Fresnillo, Zacatecas.

ON MEXICO ISSUES

  • The National Autonomous University of Mexico (UNAM) and the Mexican Mining Chamber (CAMIMEX) signed a collaboration agreement to promote research, scientific-technical advice and the training of human resources related to the mining sector. The agreement will allow addressing specific problems in this strategic sector for the country, such as the management of polluting waste and the new technologies applicable in mining processes to reduce the environmental impact and the impact on local communities.
  • Mining companies in Mexico increased their consumption of clean energy from 14 to 31% from 2019 to 2020, according to the Mining Chamber of Mexico (CAMIMEX). The results correspond to the member companies of CAMIMEX, which account for about 90% of the value of the country´s mining-metallurgical production.
  • Silver production in Mexico was led by the companies Fresnillo plc, Newmont and Grupo México in 2020, reported the Mexican Mining Chamber (CAMIMEX). Silver mining production was 180.2 M Oz in 2020, 4% less than the corresponding year. Of that total, Fresnillo plc, the world’s largest producer company, recorded a production of 27.7%. This was followed by Newmont (15.4%) and Grupo México (8.8%). By federal entity, Zacatecas retains the first position, with a participation of 38.9%.The largest silver mines in the country are located in this state: “Peñasquito”, “Saucito” and “Fresnillo”.
  • The Mexican Geological Service (SGM) has detected 14 points to explore for lithium carbonate in Sonora. Lithium is used to create batteries, technological tools, mobile devices and electric cars that is revolutionizing the automotive industry.
  • The head of CAMIMEX, Fernando Alanis, stated that Mexican mining companies face “major delays” with environmental and water permits. “According to CAMIMEX, 18 specific mining project permits are pending before SEMARNAT, corresponding to projects that represent investment of nearly USD $2,800M. The metals sector seeks to boost operations in the one of the country’s biggest industries.

ON EXPLORATION

  • Benjamin Hill Mining Corp., released assay results from its Benjamin Hill property in Sonora with values as high as up to 20.0 g/t of Au at the eastern part of the area and values that ascend to 6.1, 4.4 and 3.6 g/t of Au to the south and silver values that exceed 200 g/t. These results confirm a N-S mineralized trend that runs at least by 3m long and 3 km wide. The company considers it is a new target area worthy to be drill tested.
  • Colibri Resource Corporation completed an IP survey and applied for a drill permit on its Evelyn project. At Evelyn property, the company completed an IP survey and reported that at 100m vertical depth, two broad areas of higher chargeability were identified underlying the northeast and central-east regions of the property; at 100m vertical depth, a sharp north-northwest showing more resistive domain to the northeast and a less resistive domain to the southwest was identified and has been interpreted as a moderately westerly dipping fault zone; and at 200m vertical depth, a strong chargeability was identified underlying the chargeability anomaly at 100m depth being interpreted as due to a stronger chargeability response below the zone of oxidation. Colibri also informed that it filed a drill permit with the Mexican Environmental Authority (SEMARNAT) to drill up to 56 holes at Evelyn property. This drilling program is based on data compilation and interpretation including the IP survey.
  • Colibri Resource Corporation, along with its partner Silver Spruce Resources Inc., informed on exploration results at their Mezquite, Jacky and Diamante properties. At El Mezquite property, the companies released drill results for the first 10 holes of its phase 1 drilling program and reported that 9 out of 10 returned assays or assay intercepts greater that 0.1 g/t Au with a highlight of 0.83 g/t Au over 3.05 metres in hole MEZ-21-005. These 10 holes are part of the 20 holes completed on July from eight pads for a total of 2,485m. Results of the remaining 10 holes are pending. The company also received a comprehensive interpretation of regional ASTER and LANDSAT 8 Hyperspectral and Image Analysis at their Jackie, El Diamante, and Mezquite properties. Alteration zonesassociated with NW trending lineaments (partially targeted by phase 1 drilling) were identified at Mezquite property. At Jackie, there are andesites displaying intense oxidation, silicification and argillization in areas free of vegetation. At Diamante property, there are many areas of alteration that require field verification as part of the first drill target definition.
  • Reyna Silver Corp., presented results from the first seven holes totaling 1,095m collared at its Batopilas property in Chihuahua. This is part of a 10,000m stage 1 drilling program. Significant mineralization was encountered in hole BA21-30 with 3.03 g/t Au and 703 g/t Ag over 3.2m, including 10,565 g/t Ag over 0.2m, and 8.74 g/t Au over 0.85m; and hole BA21-34 with 4.88 g/t Au and 11 g/t Ag  over 1.5m, including 28.7 g/t Au and 59 g/t Ag over 0.25m. “Reyna Silver’s exploration program in the district is focused on tracing the known and projected native- silver bearing veins into the less explored and exploited parts of the district using surface mapping, trenching and satellite imagery”.
  • Sierra Madre Gold & Silver Ltd., announced results from its recently completed confirmation drilling program at its Tepic project. This program comprised 21 RC holes totalling 2,136m. Drilling highlights include hole TRC012 with 2.23 g/t Au and 263 g/t Ag (419 g/t AgEq) over 1.2m and hole TRC013 with 1.47 g/t Au and 119 g/t Ag (222 g/t AgEq) over 22.9m. Sierra Madre is advancing the property to a NI 43-101resource estimation.
  • Defiance Silver Corp., released drill results from its ongoing drilling program out of the existing resource area at the San Acacio project. Drilling highlights include holes DDSA-21-48 with 0.11 g/t Au, 144 g/t Ag, 0.4% Pb, and 0.5% Zn (179 g/t AgEq) over 20.97m, including 0.23 g/t Au, 597 g/t Ag, 0.5% Pb, and 1.1% Zn (665 g/t AgEq) over 1.63m, including 0.4 g/t Au, 1,460 g/t Ag, 0.8% Pb, and 1.9% Zn (1,574 g/t AgEq) over 0.6m, plus 0.36 g/t Au, 21 g/t Ag, 0.7% Pb and 1.3% Zn (109 g/t AgEq) over 5.16m; hole DDSA-21-47 with 0.5 g/t Au, 274 g/t Ag, 0.3% Pb, and 1.2% Zn (362 g/t AgEq) over 3.5m, including 0.47 g/t Au, 474 g/t Ag, 0.4% Pb, and 1.3% Zn (564 g/t AgEq) over 1.80, and further down this hole encountered historical working with poor recovery core that returned 0.4 g/t Au, 183 g/t Ag, 0.8% Pb, and 1.7% Zn (289 g/t AgEq) over 12m; and hole DDSA-21-46 with 0.25 g/t Au, 9 g/t Ag, 1.4% Pb, and 4.3% Zn (212 g/t AgEq) over 3.15m.  These results confirm up-dip and down-dip continuity of the main Veta Grande vein-structure outside of the current resource estimate.

ON MINING

  • Minera Alamos Inc. provided an updated on the ongoing ramp up of mining operations at its Santana project in Sonora. The company continued to expand blasting and mining activities aimed at removing the upper portion of the Nicho Norte mineralized “pipe”. The company has mined out over 147K tonnes from June to August, the same that were placed on the leach pad. The average grade of the blasthole assays in the mineralized zone was 0.86 g/t Au.

ON FINANCING

  • No relevant news.

ON RESOURCES AND DEVELOPMENT

  • Almaden Minerals Ltd., provided an update on its current drilling program at the Ixtaca project in Puebla. The company has identified an increase in the number of COVID 19 cases in the  municipality of Ixtacamaxtitlan and has decided to pause drilling for two weeks out. To date, Almaden has drilled only one hole at the Southeast Alteration Zone to a depth of 78m. Core samples have been already dispatched to lab for assay.
  • Coeur Mining Inc., provided an update of its ongoing infill and expansion drilling program at its Palmarejo property in Chihuahua. Drilling highlights of the infill program conducted at the Independence deposit include hole HGDH_050 with 3.8 g/t Au and 271 g/t Ag over 3.5m; hole HGDH_069 with 4.8 g/t Au and 531 g/t Ag over 16.8m; hole HGDH_072 with 23.7 g/t Au and 819 g/t Ag over 3.9m, and VIDH_161 with 9.3 g/t Au and 538 g/t Ag over 3.4m. At the Patria deposit, highlights include hole LPDH with 6.2 g/ Au and 130 g/t Ag over 13m. Expansion drilling is also being conducted at Elmira and Johnson areas and highlights include hole EL21-0850-192-X30 with 36.3 g/t Au over 4.5m, hole EL21-0850-192-X23 with 16.5 g/t Au over 6m; and hole EL21-0850-156-X11 with 27.8 g/t Au over 3.2m, 220 g/t Au over 0.2m; and 53.7 g/ Au over 0.4m. “Coeur plans to transition its focus on various resource expansion targets in the remainder of 2021, while also continuing the infill program at the Independencia North, Hidalgo and La Patria zones”.
  • Discovery Silver Corp., reported positive results from metallurgical test work at its Cordero property in Chihuahua. Sulphide flotation test work returned silver recoveries of 80-89%, lead recoveries of 83-91%, and zinc recoveries of 81-90% from locked cycle tests, while oxide & transition cyanidation test work returned silver recoveries of 54-80%, and gold recoveries of 61-75% at coarse crush / grind sizes from coarse bottle roll testing.
  • Endeavour Silver Corp., completed a Feasibility Study (FS) on its Terronera property in Jalisco. Highlights of the FS at Base Case (using USD $24 silver and USD $1,800 gold ) are an after-tax NPV (5%) of USD $174M, after-tax IRR of 21.3%, a payback period of 3.6 years, a pre-tax cumulative undiscounted free cash flow of USD $476M, and after-tax cumulative undiscounted free cash flow of USD $311M. These figures are for an underground mine operation that will process 7.4M tonnes of ore at 1,700 tons per day over the 12-year mine life.
  • Fabled Silver Gold Corp., announced additional results from its 1,200m drilling program conducted at its Santa Maria property in Chihuahua. Hole SMUG-21-14 intersected 0.23 g/t Au, 81 g/t Ag, 0.1% Pb, 0.1% Zn, and 0.01% Cu (93 g/t AgEq) over 7.2m, including 0.5 g/t Au, 143 g/t Ag, 0.5% Pb, 0.3% Zn, and 0.01% Cu (143 g/t AgEq) over 4m, plus 0.33 g/t Au, 177 g/t Ag, 0.1% Pb, 0.4% Zn, and 0.01% Cu (177 g/t AgEq) over 6.75m, including 0.53 g/t Au, 286 g/t Ag, 0.2% Pb, 0.6% Zn, and 0.01% Cu (286 g/t AgEq) over 3.85m, including 1.08 g/t Au, 634 g/t Ag, 0.3% Pb, 0.9% Zn, and 0.02% Cu (690 g/t AgEq) over 1.35m. “Holes SMUG21- 16, 17 and 18 have been completed and submitted for assay. Hole SMUG21- 18 is the last hole drilled for the underground drill campaign”.
  • GoGold Resources Inc., released results from five holes drilled at its Los Ricos project in Jalisco. The most significant drill intersection was encountered in hole LRGF-21-060 collared at El Favor deposit with 0.36 g/t Au and 238 g/t Ag (3.54 g/t AuEq or 265 g/t AgEq) over 82.9m, including 0.62 g/t Au and 408 g/t Ag (6.05 g/t AuEq or 454 g/t AgEq) over 44.4m, including 1.09 g/t Au and 700 g/t Ag (10.43 g/t AuEq or 782 g/t AgEq) over 13.8 m, including 1.56 g/t Au and 1,009 g/t Ag (15.02 g/t AuEq or 1,126 g/t AgEq) over 8.1m, including 5.66 g/t Au and 2,163 g/t Ag (34.49 g/t AuEq or 2,587 g/t AgEq) over 1.4m.
  • Gold Resource Corporation confirmed down-dip extension of the Switchback Vein System at its Arista mine in Oaxaca, with interceptions of precious and base metal mineralization approximately 80m below existing workings. “The results of drilling completed during the second and third quarters of 2021 have confirmed the potential for adding precious metal bearing mineralization that is amenable to mining in the short term. Geologists continue to focus on exploring new areas and identifying additional mineralization along strike as well as up- and down-dip of the current mine workings.” At its Don David mine, the company commenced the process of ramping up activities after bringing employees back to the mine site, and provided an updated 2021 production guidance. Gold Resource expects to produce 21K-23K Oz Au and 1.1-1.3M Oz Ag, at cash and AISC of USD $250- 290 and USD $800-900 per Oz AuEq.
  • Golden Tag Resources Ltd., released results from its drilling program conducted at its San Diego property in Durango. Hole 21-57 intersected directly over top of the NW contact of the Fernandez Zone 0.1 g/t Au, 43 g/t Ag, 0.2% Pb,  0.3% Zn, and 0.02% Cu ( 76 g/t AgEq) over 273.65m, including 0.55 g/t Au, 628 g/t Ag, 1.1% Pb, 3.61 g/t Zn, and 0.12% Cu (892 g/t AgEq) over 10m. Other significant intersections included in this long interval are 0.11 g/t Au, 362 g/t Ag, 1.2% Pb, 2.8% Zn, and 0.26% Cu (570 g/t AgEq) over 1.07m, 0.1 g/t Au, 221 g/t Ag, 3.8% Pb, 2.5% Zn, and 0.12% Cu (492 g/t AgEq) over 1.23m, and 0.08 g/t Au, 43 g/t Ag, 0.7% Pb, 0.8% Zn, and 0.05% Cu (115 g/t AgEq) over 17m, plus a deeper intersection (1849 target area) of 0.13 g/t Au, 20 g/t Ag, 0.6% Pb, 0.7% Zn, and 0.05% Cu (92 g/t AgEq) over 134.37m, including 0.22 g/t Au, 25 g/t Ag, 0.6% Pb, 0.9% Zn, and 0.07% Cu (117 g/t AgEq) over 66.04m. “This new discovery sits directly over top of the NW contact of the Fernandez Zone and contains a broad interval of silver mineralization that will be tested for continuity and the potential for additional open pit style of mineralization. The second discovery was made within the 1849 Target area, which now becomes the 1849 Zone, located only 120 m NW of the Fernandez Zone.”
  • GR Silver Mining Ltd., presented results from the exploration program conducted on the GAP area located between the San Juan and San Marcial areas in Sinaloa. Channel sampling highlights include 10.72 g/t Au and 251 g/t Ag over, 0.3m; 0.81 g/t Au and 1,450 g/t Ag over 0.35m; and 2.77 g/t Au and 363 g/t Ag over 0.3m. Rock chip sampling highlights include 0.54 g/t Au, 3.5% Pb, and 11.8% Zn; 1.6 g/t Au and 440 g/t Ag. The company controls 7km of structural trend between San Marcial and San Juan areas, which hosts the new GAP Area discovery.
  • Prime Mining Corp., released results from its phase 1 drilling program conducted at its Los Reyes property in Sinaloa. Drilling highlights include hole 21GE-20 with 35.37 g/t Au and 1.626 g/t Ag over a true width (TW) of 6m, including 62.6 g/t Au and 2,574 g/t Ag over a TW of 3m; hole 21GE-18 with 15.58 g/t Au and 270 g/t Ag over a TW of 9.4m; and hole 21GE-19 with 2.66 g/t Au and 118 g/t Ag over a TW of 30.7m. These drill results expands the open-pit potential at Guadalupe East Vein System. 
  • Silver Tiger Metals Inc., presented results from its ongoing drilling program at its El Tigre property in Sonora. The most significant drill intersection was encountered in hole 21-236  on Soy Vein with 0.34 g/t Au, 324 g/t Ag, 0.47% Cu, 0.7% Pb, and 0.4% Zn (428 g/t AgEq) including 0.27 g/t Au, 894 g/t Ag, 0.9% Cu, 0.8% Pb, and 0.5% Zn (1,039 g/t AgEq) over 0.8m.
  • SilverCrest Metals Inc., announced infill and expansion drilling results in the Babicanora Area at its Las Chispas property in Sonora. Drilling highlights include hole BV21-307 with 17.13 g/t Au and 1,830 g/t Ag (3,319 g/t AgEq) over a true width (TW) of 2.96m, including 42.3 g/t Au and 4,490 g/t Ag (8,166 g/t AgEq) over a TW of 1.21m; hole BV21-308 with 15.83 g/t Au and 1,440 g/t Ag (2,815 g/t AgEq) over a TW of 3.55m, including 93.6 g/t Au and 7,750 g/t Ag (15,884 g/t AgEq) over a TW of 3.55m, including 93.6 g/t Au and 7,750 g/t Ag (7,249 g/t AgEq) over a TW of 0.42m; and hole BV21-340 with 34.4 g/t Au and 4,260 g/t Ag (7,249 g/t AgEq) over a TW of 0.41m. This drilling is targeting conversion of an estimated 15.4M Oz AgEq grading 9.97 g/t Au and 708 g/t Ag, or 1,574 g/t AgEq.

ON DEALS AND CORPORATE ISSUES

  • No relevant news.

ON SOCIAL RESPONSIBILITY

  • Fresnillo plc, through Minera Juanicipio promotes the economy of the communities of Carrillo and Mexico Nuevo in Fresnillo, Zacatecas. The company carried out the programs “Family Gardens” and “Backyard Birds” in the communities of Carrillo and Mexico Nuevo, in order to stimulate the local economy and benefit 50 families from Fresnillo, Zacatecas. This activity has the support of local authorities.

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, calcite veinlets hosted in an oxidized siltstone-sandstone sequence in a prospect in Chihuahua, Mexico.  Photo by Miguel A Heredia.

The Mining and Exploration News in Mexico: Highlights on the First Week of September, 2021

By Jorge Cirett

During the 34th week of the year (August 30th to September 5th, 2021), at least 21 press releases were announced by companies working in Mexico. To note, four companies posted exploration advances on their properties, four posted on mining or quarterly reports, seven on financing or shares and four more on project development or resource definition. ON MEXICO ISSUES, Camimex informed on direct and indirect employment generated by the mining industry. In 2020, Mexico was the top silver producer in the world. Sixty percent of foreign held mining projects are idle. Mexico is the ninth top producer of gold in the world, with 41.3 tonnes produced in 2020. ON EXPLORATION, in Chihuahua, Monarca Minerals completed the first two RC holes at San Jose. In Sinaloa, Vizsla Silver released results from 19 holes on the Naploleon area of the Panuco project. Durango, Canasil Resources released results from two diamond holes at Nora. In Guanajuato, Guanajuato Silver informed drilling continues at Pinguico.  ON MINING, Altaley Mining and Santacruz Silver reported second quarter 2021 results. Torex Gold released its multi-year production outlook for el Limon Guajes complex, aiming to produce 1.59 to 1.75 M Oz Au in 2021-2024. Guanajuato Silver commenced infill drilling at El Cubo. ON FINANCING, Prime Mining reported the exercise of warrants for C$9.5 M; Silver Spruce announced a financing round for up to $1 M; Mithril plans to raise up to A$3.3 M. Silver Wolf shares are now eligible for electronic clearing in the USA. SilverCrest completed the second scheduled drawdown of US$30 M. Candelaria Mining announced a non-brokered private placement for $7.8 M, on which Agnico Eagle subscribed for a $6 M consideration. ON RESOURCES AND DEVELOPMENT, Cheasapeake Gold filed a NI43-101 report on the Metates heap leach project. Zacatecas Silver is to commence drilling at Panuco. Sonora Gold reported surface assay results from Cerro Caliche. GR Silver Mining commenced 1,500 m of underground resource expansion drilling at San Marcial. ON DEALS AND CORPORATE ISSUES, No relevant news. ON SOCIAL RESPONSIBILITY, Torex Gold, Autlán, Industrias Peñoles, Fortuna Silver and Almaden Minerals informed on social responsibility actions by the companies on communities and society.

ON MEXICO ISSUES

  • Camimex (Cámara Minera de México) informed that during the first half of 2021 the mining industry generated 40,895 new direct jobs and more than 2 million new indirect jobs, boasting salaries 36% higher than the national average.  Also, during 2020 the industry invested US$3,532 M (US$3.5 billion, in American notation) and is posed to invest further US$5,034 M (US$5 billion in American notation) in 2021 and a total of more than US$24,000 M (US$24 billion in American notation) in the next six years.  
  • Mexico was the top producer of silver in the world in 2020, with 5,541 tonnes, China and Peru stand in the second and third place producing 3,443 tonnes and 2,991 tonnes respectively.
  • There are 1,190 mining projects funded by foreign capital in Mexico, but 6 of each 10 are idle, regardless of the increase in metal prices. Of the 1,190 projects, 754 are idle, 307 in exploration, 78 in production, 43 in development and 8 have closed. One of the issues affecting the mining industry in Mexico is the fiscal load, with taxes on profit of 52.7%, same tax burden that in other countries is lower: USA 30.2%, Canada 34.6%, Chile 35.7%, Peru 39.9%.
  • Mexico is the ninth producer of gold in the world, tied with Uzbekistan. Gold production during the first half of 2021 was 41,325 kg, which is 30% higher than a year before. This is the first yearly increase in gold production since the historic high of 2015, when 60,325 kg were produced. Sonora produced 29.8% of the total amount, Zacatecas 18.8% and Chihuahua 16.1%. Five companies produced almost 60% of the total, Fresnillo PLC, Newmont (Peñasquito), Torex Gold, Agnico Eagle and Alamos Gold.

ON EXPLORATION

  • Monarca Minerals Inc. informed on the completion of the first two drill holes at the San Jose project in Chihuahua. Both RC holes intersected endoskarn and exoskarn mineralization with pyrite and fine grained sulfides (probably galena and sphalerite) and local chalcopyrite. Both holes targeted geophysical anomalies.
  • Canasil Resources Inc. released results from the second and third holes of the 2021 drill program at Nora, in Durango. Highlighted true-width intervals comprise 7.18 m @ 2.05 gpt Au, 344 gpt Ag, 0.4% Pb, 0.8% Zn (including 1.87 m @ 4.42 gpt Au, 541 gpt Ag, 0.9% Pb, 1.9% Zn and 0.94 m @ 2.92 gpt Au, 766 gpt Ag, 1.0% Pb, 2.1% Zn); 0.94 m @ 5.91 gpt Au, 316 gpt Ag, 0.8% Pb, 1.7% Zn; 0.94 m @ 7.0 gpt Au, 279 gpt Ag; 0.94 m @ 2.13 gpt, 203 gpt Ag; 5.33 m @ 1.14 gpt Au, 157 gpt Ag (including 1.85 m @ 2.45 gpt Au, 284 gpt Ag); 1.36 m @ 1.30 gpt Au, 302 gpt Ag; 3.29 m @ 6.44 gpt Au, 884 gpt Ag, 0.2% Zn; 0.90 m @ 1.65 gpt Au, 431 gpt Ag, 0.1% Zn; 1.53 m @ 20.59 gpt Au, 1,290 gpt Ag, 0.1% Pb, 0.3% Zn; 2.71 m @ 2.76 gpt Au, 250 gpt Ag, 0.1% Zn. “Gold-silver mineralization is hosted within two structurally-controlled epithermal veins, Candy and Nora… The fault structure hosting the Candy vein has been traced for a distance of over 3 km…. The second vein, Nora, is found 600 metres northeast of the Candy vein and can be traced for 230 metres with widths of over 9.0 metres”.
  • Vizsla Silver Corp. released the results from 19 new holes targeting the Napoleon vein resource area at its Panuco project in Sinaloa. Highlighted true-width results comprise 1.46 m @ 10.74 gpt Au, 188 gpt Ag, 1.3% Pb, 3.5% Zn; 3.01 m @ 3.62 gpt Au, 40 gpt Ag, 0.8% Pb, 4.0% Zn; 3.40 m @ 3.10 gpt Au, 110 gpt Ag, 1.2% Pb, 1.1% Zn; 1.40 m @ 6.49 gpt Au, 114 gpt Ag, 0.8% Pb, 8.0% Zn; 5.93 m @ 11.35 gpt Au, 185 gpt Ag, 0.5% Pb, 2.2% Zn; 6.33 m @ 1.79 gpt Au, 52 gpt Ag, 0.2% Pb, 1.1% Zn. To date 105 holes on the Napoleon resource area define an average vein width of 3.5 m @ 3.11 gpt Au, 161 gpt Ag, 0.45% Pb, 1.3% Zn. A maiden resource estimate is planned for Q1 2022.
  • Guanajuato Silver Company Ltd. informed that drilling continues at El Pinguico project in Guanajuato.

ON MINING

  • Altaley Mining Corp. released its financial and operating results for Q2 2021. At Campo Morado, Guerrero, the company processed 164 K tonnes at 1,803 tonnes per day, grading 4.5% Zn, 0.34% Cu, 129 gpt Ag, 1.16 gpt Au, recovering 74% Zn, 31% Pb, at cash cost $0.48per Lb Zn and an AISC of $0.77 per Lb Zn.
  • Santacruz Silver Mining Ltd. reported its financial and operating results for the second quarter 2021. The company operating the Zimapan and Rosario mines in Hidalgo and San Lusi Potosi respectively, processed 172.3 K tonnes to produce 799 K Oz Ag at cash cost $55.48 per tonne, cash cost $19.87 per Oz Ag, an AISC of $23.74 per Oz Ag. Revenue increased to $13.7 M and gross profits to $3.8 M.
  • Torex Gold Resources Inc. informed on the multi-year outlook for production at its El Limon Guajes mining complex in Guerrero. Torex plans to produce at El Limon Guajes 430-470 K Oz Au in 2021, 430-470 K Oz Au in 2021, 400-450 K Oz Au in 2023 and 330-350 K Oz Au in 2024 (1.59-1.74 M Oz Au, total). “The current production outlook assumes production from the ELG open pits through mid-2024, and stable production from the ELG Underground through to at least the end of 2024 and likely longer based on exploration results”.
  • Guanajuato Silver Company Ltd. announced that infill and expansion drilling has commenced at its El Cubo mine in Guanajuato.

ON FINANCING

  • Prime Mining Corp.  reports the exercising of warrants for gross proceeds of C$9.52 M, resulting in a cash position of C$31.9 M. “From the 15,000 metre (“m”) Phase 1 diamond drill program at Los Reyes completed in June 2021, 29 unreported holes are expected to be released in the coming weeks” (Los Reyes, Sinaloa).
  • Silver Wolf Exploration Ltd. announced its shares are now eligible for electronic clearing and settlement in the United States (Ana Maria, Durango).
  • SilverCrest Metals Inc. announced the completion of the second scheduled drawdown of US$30 M on its previously announced US$120 Million project financing facility with an affiliate of RK Mine Finance (Las Chispas, Sonora).
  • Silver Spruce Resources Inc. announced a private placement to gather up to $1 M (El Mezquite, Sonora).
  • Candelaria Mining Corp. announced a non-brokered private placement geared to raise up to $7.8 M in gross proceeds (Caballo Blanco, Veracruz).
  • Agnico Eagle Mines Ltd. is subscribing 13.333 M units of Candelaria Mining Corp., for a total consideration of $6 M. On closing of the private placement, Agnico is to own 15.94% of the issued and outstanding shares of Candelaria (Pinos Altos, Chihuahua).
  • Mithril Resources Ltd. Is planning to raise up to A$3.3 M through a share placement (Coplaquin, Durango).

ON RESOURCES AND DEVELOPMENT

  • Chesapeake Gold Corp. filed a NI-43-101 technical report on the Metates sulfide heap leach project in Durango. The company has shipped selected drill core samples for metallurgical testing in Vancouver. “The Company will prioritize the intrusive and intrusive breccia portions of the Metates orebody with results of the testwork to be released on an ongoing basis. First results are expected in earlyQ1 2022”.
  • Zacatecas Silver Corp. informed drilling to commence at the Panuco deposit and San Gill breccia zone on its Zacatecas Silver project. The Phase One program is to include 10,000 m of drilling. “A total of three veins will be drilled — Panuco NW, Panuco Central and Tres Cruces — which remain open at depth and along strike. These are high-priority drill targets”.
  • Sonoro Gold Corp. reported assay results from surface sampling at its Cerro Caliche project in Sonora. “Surface rock samples were collected from several well-defined vein and gold mineralized structures by channel sampling perpendicular across measured veins and wall rocks with sample lengths ranging from 0.4 to 2.0 meters. Assay results from 17 samples returned grades between 2.5 and 14.3 grams of gold per tonne”. These assays are from extensions to significant structural corridors at the Buena Suerte and El Colorado zones.
  • GR Silver Mining Ltd. commenced the initial 1,500 m underground resource expansion diamond drill program at San Marcial, in Sinaloa. The program will test down-dip and along strike extensions to the existing NI-43-101 resource and new targets defined by a recent geophysical program.

ON DEALS AND CORPORATE ISSUES

  • No Relevant News.

ON SOCIAL RESPONSIBILITY

  • Minera Media Luna (Torex Gold) informed on medical supplies to some communities in Guerrero.
  • Autlán received for second consecutive year the Ethics and Values award granted by CONCAMIN (Confederación de Cámaras Industriales).
  • Peñoles received the Ethics and Values, and the Health and Wellbeing awards granted by CONCAMIN (Confederación de Cámaras Industriales).
  • Minera Cuzcatlán (Fortuna Silver) informed on aid to local communities near its San José mine in Oaxaca.
  • Fresnillo and Industrias Peñoles informed on aid to communities and organizations thorough the country.
  • Minera Gorrión (Alamaden Minerals informed on the way it is letting the communities know about its current drilling program in Puebla.

On the image below:  Low sulfidation epithermal quartz veining from a project in northern Sonora. Picture by Jorge Cirett.

The Mining and Exploration News in Mexico: Highlights on the Second Week of August, 2021.

By Miguel A Heredia

During the 32nd week of the year (August 9th to August 15th, 2021), at least 22 press releases were announced by companies working in Mexico and 2 news published by the media, with eight reporting resources and developments of their properties, seven communicating production and financial results, four informing on exploration results, two announcing financial topics,, one disclosing deal and corporate issues, one commenting on Mexican issues and one discussing social issues.  ON MEXICO ISSUES, According to World Bank Data, Mexico continued to dominate world silver production last year, despite a 9.5% drop on the previous year.  ON EXPLORATION, In Durango, Canasil released results from the first drill hole of its 2020 follow up drill program collared at its Nora project, and Mithril presented drilling results, extending the El Refugio high-grade “clavo” zone 80m further east. In Zacatecas, Zacatecas Silver announced it has received drilling permits for their El Panuco and San Gil projects. In the State of Mexico, Xali has identified new drill targets at its El Oro-Tlalpujahua mining district.  ON MINING, Gatos Silver reported Q2, 2021 production and financial results from its Los Gatos mine in Chihuahua. Argonaut announced Q2, 2021 production and financial results from their Mexican operations. Endeavour presented Q2, 2021 consolidated financial results from their Mexican operations. GoGold reported Q2, 2021 production and financial results from its Parral Tailings project in Chihuahua.  Guanajuato Silver announced that it began stockpiling mineralized material from its El Cubo mine in Guanajuato. Pan American reported Q2, 2021 production and financial results from their La Colorada and Dolores mines in Zacatecas and Chihuahua respectively. Sierra Metals announced Q2, 2021 production and financial results from their Bolivar and Cusi mines in Chihuahua.  ON FINANCING, Magna provided an update to its previously announced non-brokered private placement of CAD $10M convertible debentures (San Francisco mine, Sonora). Southern Silver provided exercise instructions for warrants dated September 11, 2020 (Cerro Las Minitas, Durango).  ON RESOURCES AND DEVELOPMENT, Barksdale commenced a 5,000m Phase 1 drilling program at its San Javier project in Sonora. Azucar Minerals provided an update for its El Cobre project in Veracruz. Gatos Silver reported drilling results from its definitional drilling at its Cerro Los Gatos, Chihuahua. Gold Resource confirmed the up-dip extension of the Switchback Vein system and has also intersected additional mineralization outside of the current mining area (Don David Gold mine, Oaxaca). Osisko provided an update of the activities carried out in 2021 at its San Antonio project, Sonora.  Pan American reported its estimated mineral reserves and resources as of June 30, 2021 at their La Colorada, Dolores, and La Bolsa deposits in Zacatecas, Chihuahua, and Sonora respectively. SilverCrest provided an update on its Las Chispas mine construction in Sonora.  Southern Silver released assay results from its ongoing drilling program at its Cerro Las Minitas project, Durango. ON DEALS AND CORPORATE ISSUES, Excellon provided an update on litigation in respect of the La Antigua mineral concession (Evolution property, Zacatecas). ON SOCIAL RESPONSIBILITY, Alamos Gold has allocated MXP $400M in environmental investment at its la Yaqui Grande mining project in Sonora.  

ON MEXICO ISSUES

  • According to World Bank Data, Mexico continued to dominate world silver production last year, despite a 9.5% drop on the previous year. Mexico produced 5,541 tonnes of silver, followed by China with 3,443 tonnes, and by Peru with 2,991 tonnes. Global production of silver totaled 25,516 tonnes last year, a 3.7% decrease compared to 2019, largely due to COVID-19 restrictions which required several major silver producers to temporarily halt production. “Mexico´s Fresnillo plc, the world´s largest silver producing company, said mine extraction of the metal has shown a steady decline since 2015”.

ON EXPLORATION

  • Canasil Resources Inc., released results from the first drill hole of its 2020 follow up drill program collared at its Nora project. Highlights of the hole NRC-21-09 drilled on the Candy Vein include 20.59 g/t Au and 1,290 g/t Ag (2,783 g/t AgEq) over a true width (TW) of 1.53m, including 43.7 g/t Au and 1,290 g/t Ag (4,458 g7t AgEq) over a TW of 0.63m; plus 6.44 g/t Au and 884 g/t Ag (1,355 g/t AgEq) over a TW of 3.29m on the Candy hanging wall structure, including 8.45 g/t Au and 1,021 g/t Ag (1,634 g/t AgEq) over a TW of 1.84m, including 15.6g/t Au and 561 g/t Ag (1,692 g/t AgEq) over a TW of 0.50m; plus 2.76 g/t Au and 250 g/t Ag (450 g/t AgEq) over a TW of 2.71m on the Candy foot wall structure, including 6.19 g/t Au and 319 g/t Ag (768 g/t AgEq) over a TW of 0.90m. The high gold and silver grades and relatively low base metal values suggest the upper levels of the system which is open to depth.
  • Mithril Resources Ltd., presented drilling results, extending the El Refugio high-grade “clavo” zone 80m further east. High-grade was intercepted in hole CDH-079 with 7.60 g/t Au and 332 g/t Ag over 12.4m, including 18.1 g/t Au and 810 g/t Ag over 4.19m; and hole CDH-80 with 5.08 g/t Au and 197 g/t Ag over 6.11m, including 9.47 g/t Au and 399 g/t Ag over 2.3m.
  • Zacatecas Silver Corp., announced it has received drilling permits from SEMARNAT for the execution of 10,000m of drilling at their El Panuco and San Gil projects in Zacatecas. The company also completed environmental studies at San Manuel and El Cristo projects and has submitted drill permit applications to SEMARNAT which expect to be received in approximately four weeks.
  • Xali Gold Corp., has identified in a 3D Leapfrog model, new drill targets at its El Oro-Tlalpujahua mining district in the State of Mexico. These targets are designed to test potential extensions to the mineralized veins where they are intersected by cross-cutting mineralized structures. These structures have been incorporated into the 3D model in order to optimize drill angles and azimuths.

ON MINING

  • Gatos Silver Inc., reported Q2, 2021 production and financial results from the Los Gatos mine in Chihuahua. The company mined 240,047 tonnes and milled 230,656 tonnes of 322 g/t Ag, 0.35 g/t Au, 2.5% Pb, and 4.4% Zn with metallurgical recoveries of 89%, 63%, 90%, and 75% respectively to produce 2.1M Oz Ag, 1.5K Oz Au, 11.2M Lb Pb, and 14.5M Lb Zn. Co-product cash cost and Co-product AISC were $11.5 and $17.65 per Oz AgEq respectively, while by-product cash cost and by-product AISC were $2.87 and $12.63 per Oz AgEq respectively. Gatos Silver reported operating expenses for $5.1M, a net income of $13.5M, and a cash and cash equivalents at June 30, 2021 for $29.6M.
  • Argonaut Gold Inc., announced Q2, 2021 production and financial results from their Mexican operations. At El Castillo mine in Durango, the company mined 2,496,000 tonnes and processed 2,468,000 tonnes on leach pads with a grade of 0.25 g/t Au to produce 12.7K Oz Au and 17.4K Oz Ag or 12,929 Gold Equivalent Ounces (GEOs) at a cash cost of USD $1,109 per Oz Au sold. At San Agustin mine in Durango, Argonaut mined 2,718,000 tonnes and processed 2,962,000 tonnes on leach pads with a grade of 0.32 g/t Au to produce 18.1K Oz Au and 138.5K Oz Ag or 19,734 GEOs, at a cash cost of USD $801 per Oz Au sold. Consolidated results for El Castillo Complex (El Castillo + San Agustin mines) were 5,214,000 tonnes mined and 5,450,000 tonnes processed with a grade of 0.29 g/t Au to produce 30.8K Oz Au and 155.9K Oz Ag or 31.4K GEOs at a cash cost of USD $924 per Oz Au sold. At La Colorada mine in Sonora, it mined 1,150,000 tonnes and processed 1,247,000 tonnes on leach pads with a grade of 0.76 g/t Au to produce 16.7K Oz Au and 48.1K Oz Ag or 17,288 GEOs, at a cash cost of USD $608 per Oz Au sold. Argonaut also reported the discovery of high-grade gold veins below the El Creston open pit, including 98.9 g/t Au and 30 g/t Ag over 12.2m, and 44.6 g/t Au and 275 g/t Ag over 21.3m.
  • Endeavour Silver Corp., presented Q2, 2021 consolidated financial results from their Mexican operations. The company produced 1.07M Oz Ag and 11.1K Oz Au (2MOz AgEq) at cash and AISC of USD $13.03 and USD $25.39 per Oz Ag payable respectively. It reported net revenue of USD $47.7M from the sale of 1.12M Oz Ag and 9.8K Oz Au; cash flow of USD $8.7M before working capital changes; earning of USD $6.7M; adjusted earning of USD $0.8M; cash position of USD $125.2M; and working capital of USD $146.8M. Endeavour also announced the suspension of operations at its El Compas mine in Zacatecas. 
  • GoGold Resources Inc., reported Q2, 2021 production and financial results from its Parral Tailings project in Chihuahua. The company produced 315.6K Oz Ag, 3,170 Oz Au, and 268.8K Lb Cu (563.4K Oz AgEq) at cash and AISC of USD $13.31 and USD $16.98 per Oz AgEq. GoGold reported revenues for USD $15M on the sale of 563.4K Oz AgEq; free cash of USD $7.5M; cash flow from operations before working capital of USD $6M, and USD $2.7M after working capital; adjusted net income of USD $3.9M; and cash of USD 73.5M. The company plans to use the free cash flow generated from its Parral Tailings project to fund the current exploration program conducted at its Los Ricos project in Jalisco.
  • Guanajuato Silver Company Ltd., announced that mining, mucking, and stockpiling of mineralized material has begun at its El Cubo mine in Guanajuato in anticipation of the recommencement of operations at the El Cubo mill.
  • Pan American Silver Corp., reported Q2, 2021 production and financial results from their La Colorada and Dolores mines in Zacatecas and Chihuahua respectively. At La Colorada, Zacatecas, the company produced 1.01M Oz Ag and 700 Oz Au at cash and AISC of USD $4.52 and USD $12.42 per Oz Ag respectively. At Dolores, Chihuahua, Pan American produced 612K Oz Ag and 43.3K Oz Au at cash and AISC of USD $602 and USD $716 per Oz Au respectively.
  • Sierra Metals Inc., announced Q2, 2021 production and financial results from their Bolivar and Cusi mines in Chihuahua. At Bolivar mine, Chihuahua, the company processed 385,331 tonnes of 0.86% Cu, 19 g/t Ag, and 0.21 g/t Au to produce 5.8M Lb Cu, 202K Oz Ag, and 1,627 Oz Au (7.75M Lb CuEq) at cash and AISC of USD $1.17 and USD $3.27 per Lb CuEq respectively. At Cusi mine, Chihuahua, Sierra Metals processed 73,294 tonnes of 139 g/t Ag, 0.16 g/t Au and 0.1% Pb to produce 269K Oz Ag, 142 Oz Au and 129K Lb Pb (283K Oz AgEq) at cash and AISC of USD $21.67 and USD $35.73 per Oz AgEq.

ON FINANCING

  • Magna Gold Corp., provided an update to its previously announced non-brokered private placement of CAD $10M convertible debentures. The principal amount of the debentures is convertible, at the election of Delbrook Capital Advisors Inc., into common shares of the company at a conversion price of CAD $1.25 per common share.  The Company will pay Delbrook a 1.25% arrangement fee on closing of the private placement (San Francisco mine, Sonora).
  • Southern Silver Exploration Corp., provided exercise instructions for warrants dated September 11, 2020 in connection with a CAD $10M brokered private placement of subscription receipts and a CAD $4M non-brokered private placement of subscription receipts which both closed on August 14, 2020 (Cerro Las Minitas, Durango).

ON RESOURCES AND DEVELOPMENT

  • Barksdale Resources Corp., commenced a 5,000m Phase 1 drilling program at its San Javier project in Sonora. Goals of this Phase 1 drilling program is to test the controls of the Cu mineralization at the Cerro Verde deposit in San Javier project, to step out of from known areas of previously drilled mineralization, and provide metallurgical samples for a column test work. Results from this drilling phase will be used to update a 3D model that will form the base for a new resource estimate.
  • Azucar Minerals Ltd., provided an update for its El Cobre project in Veracruz. It has drilled a couple of holes: one at El Pedregal target and a second one at the Raya Tembrillo target within the Villa Rica Zone at its El Cobre property. A hole planned for the large area of alteration and mineralization of the Encinal Zone will be deferred until more detailed geologic work and review is complete. Assays of the two holes already drilled will be released when they are received and processed. It is also reviewing past acquired data to plan additional drilling for future programs.
  • Gatos Silver Inc., reported drilling results from its 27,000m definitional drilling at its Cerro Los Gatos, Chihuahua. Highlights include hole GA404 collared at SE Zone of Esther deposit with 211 g/t Ag, 0.28 g/t Au, 5.5% Pb, and 8.3% Zn over 12.5m, and hole GA392 collared at NW Zone of Esther deposit with 27 g/t Ag, 0.9% Pb, and 4.5% Zn over 30m. “Drilling has identified three separate veins in SE Block #4: an upper vein, a middle vein with more characteristic thickness and grade of the main Cerro Los Gatos system, and a deeper footwall vein which was first identified in this campaign of drilling. The upper vein now has a demonstrated strike length of 400 meters which is open to the southeast and at depth. The middle vein has a demonstrated strike length of 520 meters which remains open to the northwest and at depth. The third vein has a demonstrated strike length of 800 meters and remains open to the southeast and at depth. These drill results extended 800m from the existing resource reserve blocks and remains open to the SE”.
  • Gold Resource Corporation confirmed the up-dip extension of the Switchback Vein system and has also intersected additional mineralization at Sandi Vein system outside of the current mining area with upside potential to develop a new mineralized zone.  Drilling highlight on Switchback Vein include hole # 521013 with 1.51 g/t Au, 95 g/t Ag, 0.21% Cu, 1.2% Pb, and 1.8% Zn over 5.37m, including 2.61 g/t Au, 155 g/t Ag, 0.25% Cu, 2.1% Pb, and 3% Zn over 2.9m; hole # 521014 with 0.82 g/t Au, 640 g/t Ag, 0.24% Cu, 0.2% Pb, and 0.8% Zn over 0.78m, hole # 521015 with 0.01 g/t Au,  2,610 g/t Ag, and 0.31% Cu over 1.55m; and hole # 521018 with 4.45 g/t Au, 4,460 g/t Ag, 0.03% Cu, 1% Pb, and 2.4% Zn over 0.36m. Drilling highlights at Sandy Vein system include hole # 521021 with 1.61 g/t Au, 33 g/t Ag, 0.5% Cu, 2.4% Pb, and 2.1% Zn over 8.67m, including 4.88 g/t Au, 75 g/t Ag, 0.93% Cu, 6.4% Pb, and 4% Zn over 2.77m; and hole # 521022 with 2.32 g/t Au, 19 g/t Ag, 0.2% Cu, 1.4% Pb, and 6.8% Zn over 1.18m. “The Sandy 1 vein is open on dip and along strike to the northwest, whilst southeastern potential, including linkage to the Switchback system, is being evaluated”.
  • Osisko Development Corp., provided an update of the activities carried out in 2021 at its San Antonio project, Sonora. The company completed 9,900m of infill drilling of a planned two phase 45,000m drilling campaign. It also continues preparations to commence processing of the large stockpile on site, and announced that the heap leaching permitting is on schedule and anticipates granting of the permit by the end of the year.
  • Pan American Silver Corp., reported its estimated mineral reserves and resources as of June 30, 2021 at their La Colorada, Dolores, and La Bolsa deposits in Zacatecas, Chihuahua, and Sonora respectively. Mineral resources are exclusive of mineral reserves. At La Colorada mine, Zacatecas, the company reported proven reserves of 3.9M tonnes of 350 g/t Ag and 0.25 g/t Au for a total of 43.5M Oz Ag and 30.6K Oz Au contained and probable reserves of 6.2M tonnes of 289 g/t Ag and 0.19 g/t Au for a total of 57.3M Oz Ag and 38.2K Oz Au contained. It also reported measured resources of 1.3M tonnes of 185 g/t Ag and 0.15 g/t Au for a total of 7.6M Oz Ag and 6K Oz Au contained, indicated resources of 1.9M tonnes of 175 g/t Ag and 0.15 g/t Au, for a total of 10.6M Oz Ag and 9K Oz Au contained, and inferred resources of 8.4M tonnes of 190 g/t Ag and 0.15 g/t Au for a total of 51.1M Oz Ag and 40.9K Oz Au. In addition La Colorada Skarn has inferred resources of 100.4M tonnes of 44 g/t Ag to contain a total of 141M Oz Ag. At Dolores mine, Chihuahua, Pan American reported proven reserves of 20.8M tonnes of 22 g/t Ag and 0.74 g/t Au for a total of 14.9M Oz Ag and 495.3K Oz Au contained and probable reserves of 6.2M tonnes of 28 g/t Ag and 0.78 g/t Au for a total of 5.6M Oz Ag and 155.1K Oz Au contained. The company also reported measured resources of 2.82M tonnes of 16 g/t Ag and 0.3 g/t Au for a total of 1.5M Oz Ag and 27.2K Oz Au, indicated resources of 0.82M tonnes of 22 g/t Ag and 0.62 g/t Au for a total of 0.6M Oz Ag and 16.3K Oz Au contained, and 2.7M tonnes of 46 g/t Ag and 1.25 g/t Au for a total of 4M Oz Ag and 108.5K Oz Au contained. At La Bolsa deposit, Sonora, the company reported measured resources of 10.8M tonnes of 10 g/t Ag and 0.7 g/t Au for a total of 3.5M Oz Ag and 242.8K Oz Au contained, indicated resources of 10.6M Oz tonnes of 8 g/t Ag and 0.54 g/t Au for a total of 2.7M Oz Ag and 154.3K Oz Au contained, and inferred resources of 13.7M tonnes of 8 g/t Ag, and 0.51 g/t Au for a total of 3.3M Oz Ag and 224.6K Oz Au contained.
  • SilverCrest Metals Inc., provided an update on its Las Chispas mine construction in Sonora. The company reported that at the end of HI, 2021 Las Chispas progress was 33% completed; camp facility and earthworks completed; concrete foundation work 74% complete; plant tank, power line, road and bridge commenced; and 4.6Km of underground development completed. SilverCrest reported that as at July 31, 2021, the company remains well funded with cash and cash equivalents of USD $188M and USD $90M available under a USD $120M project financing facility. “Las Chispas could generate after-tax project free cash flow of approximately USD $160M in 2023 and an estimated average of USD $110M per year from 2023 to 2029”.
  • Southern Silver Exploration Corp., released assay results from its ongoing drilling program at its Cerro Las Minitas project, Durango. Drilling highlights from Mina La Bocona Area include hole 21CLM-164 with 102 g/t Ag, 1.8% Pb, and 1.7% Zn (234 g/t AgEq) over a true width (TW) of 16.3m, including 383 g/t Ag, 7.9% Pb, and 10.2% Zn (1,051 g/t AgEq) over a TW of 1.4m; 21CLM-167 with 263 g/t Ag, 0.2 g/t Au, 6% Pb, and 1.2% Zn (513 g/t AgEq) over a TW of 1.7m, including 543 g/t Ag, 0.4 g/t Au, 12.7% Pb, and 1% Zn (1,011 g/t AgEq) over a TW of 0.7m; and hole 21CLM-170 with 7 g/t Ag, 0.4% Cu, and 10.6% Zn (443 g/t AgEq) over a TW of 2.5m, including 14 g/t Ag, 0.4% Cu, and 21% Zn (844 g/t AgEq) over a TW of 0.7m. The current drill program has now completed 56 core holes totaling 22,360 metres since drilling recommenced in September 2020. Assay results from five drill holes are pending and are anticipated over the coming weeks. “Southern Silver has now tested over 850m of strike length along the east side of the Cerro to depths of up to 500m, primarily in the South Skarn and Mina La Bocona target areas. Three bonanza grade mineralized zones have been identified as well as shallow intercepts of high-grade mineralization to the northwest of the Bocona target, results of which will be incorporated into an upcoming mineral resource update on the project”.

ON DEALS AND CORPORATE ISSUES

  • Excellon Resources Inc., provided an update on litigation involving the Company’s subsidiary, San Pedro Resources SA de CV (San Pedro) in respect of the La Antigua mineral concession (Evolution property, Zacatecas). Excellon received an initial electronic notice last July that San Pedro’s appeal to the federal courts of Mexico in respect of the litigation was dismissed, despite the lack of evidence, facts or law to support this outcome. The Company has now received the formal written decision on the appeal which, based on initial legal review, appears to uphold the judgment granting the plaintiff an award of approximately USD $23M and is not subject to further legal appeal in Mexico.  Brendan Cahill, President and CEO of Excellon, stated that “The value ascribed in the judgment is impossible based on evidence, facts or law. Simply put, the maximum value realizable by the plaintiff from the agreement on La Antigua was USD $500K in the best-case scenario, yet the Miguel Auza Mine was shut down in 2008 almost immediately after operations commenced.”

ON SOCIAL RESPONSIBILITY

  • Alamos Gold Inc., has allocated MXP $400M in environmental investment at its la Yaqui Grande mining project in Sonora. The foregoing consists of environmental remediation works that will be carried out as areas of the mine are vacated, a different model from the traditional work that waits until the end of the useful life of a mine to carry out reclamation and closure activities. In La Yaqui Grande, it is contemplated to have constant reclamation of areas, placing the vegetal roof covering in layers and stages, which implied a special design and engineering to make it possible throughout the seven years of operation. The company will also acquire a treatment plant that will allow the water used in the operation to be recirculated, reducing its consumption. The design of “tepetateras or dumps” is different from the traditional ones and there is already a nursery for the reproduction of native plants of the region, which will supply the demand for the development of this environmental project.

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 volcanic-hosted quartz vein with oxidized pyrite in a low sulphidation epithermal vein system from a prospect in Chihuahua, Mexico.  Photo by Miguel A Heredia.

The Mining and Exploration News in Mexico: Highlights on the Fifth Week of July, 2021.

Quartz vein displaying boiling texture

By Miguel A Heredia

During the 30th week of the year (July 26th to August 1st, 2021), at least 28 press releases were announced by companies working in Mexico and 3 news published by the media, with eight communicating production and financial results, eight informing on exploration results, five disclosing deal and corporate issues, four reporting on resources and developments of their properties, two announcing financial topics, two commenting on Mexican issues and two discussing social issues.  ON MEXICO ISSUES, Equinox announced that the illegal blockade at its Los Filos mine in Guerrero has been lifted. According to information from the Mexican Mining Chamber (CAMIMEX), mining companies working in Mexico have a sustainable commitment with the environment.   ON EXPLORATION, In Sonora, Tocvan and its partner Colibri reported results from its ongoing drilling program at the Pilar project, and Riverside announced results from the first hole testing the Santa Rosalia target at its the Cuarentas project. In Sinaloa, Vizsla released new results from its ongoing 100,000m drilling program at its Panuco project. In Durango, Canasil informed that it has completed three holes at its Nora project and Mithril provided a report of the exploration activities carried out at its Copalquin project during the period Q2, 2021.  In Puebla, Almaden commenced prospect drilling at its Ixtaca property. ON MINING, Mexus announced that mining continues at the Vein 2 Area within its Santa Elena mine in Sonora. Santacruz reported Q2, 2021 production results from their Zimapan and Rosario mines in Hidalgo and San Luis Potosi respectively. Alamos Gold presented Q2, 2021 production and financial results from its Mulatos mine in Sonora.  Capstone announced Q2, 2021 production and financial results from its Cozamine mine in Zacatecas. Agnico Eagle reported Q2, 2021 from their Mexican operations in Chihuahua and Sonora. Coeur presented Q2, 2021 production and financial results from its Palmarejo mine in Chihuahua. Gold Resource announced Q2, 2021 production and financial results from its Arista mine in Oaxaca. Mag Silver and its JV partner Fresnillo plc reported Q2, 2021 production results from its Juanicipio project in Zacatecas. ON FINANCING, Gold Resource declared quarterly dividends of $0.01 per common share to shareholders for the period Q2, 2021 (Arista mine, Oaxaca). Guanajuato Silver announced it has drawn down USD $7.5M from its loan facility (El Cubo mine, Guanajuato). ON RESOURCES AND DEVELOPMENT, Chesapeake released results of its PEA for the Phase 1 mine plan of its Metates project, Durango. Fabled reported drill results and expanded to 14,200m its ongoing drilling program at the Santa Maria project, Chihuahua. GoGold continued releasing drill results from the ongoing drilling campaign at its Los Ricos North project in Jalisco.   Golden Tag filed a drill permit to quadruple the number of drill pads at its San Diego project, Durango.  ON DEALS AND CORPORATE ISSUES, Commander optioned the Pedro project, Durango to Southern Empire. Vizsla announced the appointment of its VP of Business Development and Strategy (Panuco project, Sinaloa). SilverCrest announced the appointment of its VP of Technical Services (Las Chispas, Sonora). Altaley launched its new corporate website (Campo Morado mine, Guerrero). ON SOCIAL RESPONSIBILITY, Grupo Mexico delivered 9,000 trees for forestry programs to the Municipality of San Francisco del Rincón, Aguascalientes. Fresnillo plc and Industrias Peñoles have implemented strategies for the care and management of water for their operational processes in all their mines and plants.

ON MEXICO ISSUES

  • Equinox Gold Corp., announced that the illegal blockade at its Los Filos mine, Guerrero has been lifted, access to the mine has been restored and Los Filos mine has resumed operations.  There are some members of Xochipala community still camped near the Guadalupe and Bermejal open pits but Equinox´s representatives are in talks with government and Xochipala representatives to achieve resolution.
  • According to information from the Mexican Mining Chamber (CAMIMEX), mining companies working in Mexico have a sustainable commitment. In 2020 more than MXP $7,450M was invested in the country to take care of the environment such as efficient water management, reforestation, and conservation of the flora and fauna species as part of its sustainability policies and in compliance with Mexican legislation.

ON EXPLORATION

  • Tocvan Ventures Corp. and its partner Colibri Resources Corporation reported results from its 20-holes, 2500 m Phase 2 RC program at the Pilar project in Sonora. Significant drill results were encountered in holes JES-21-53 with 1.09 g/t Au and 2 g/t Ag (1.11 g/t AuEq) over 15.25m, including 2.42 g/t Au and 3 g/t Ag (2.45 g/t AuEq) over 4.58m, including 4.57 g/t Au and 3 g/t Ag (4.65 g/t AuEq) over 1.53m; hole JES-21-52 with 0.63 g/t Au and 47 g/t Ag (1.13 g/t AuEq) over 3.05m, plus 0.49 g/t Au and 31 g/t Ag (0.81 g/t AuEq) over 3.06m; hole JES-21-55 with 0.43 g/t Au and 4 g/t Ag (0.47 g/t AuEq) over 10.67m, including 1.16 g/t Au and 7 g/t Ag (1.24 g/t AuEq) over 1.52m, plus 1.2 g/t Au over 1.53m; and hole JES-21-50 with 0.96 g/t Au and 2 g/t Ag (0.99 g/t AuEq) over 39.65m, including 3.04 g/t Au and 6 g/t Ag (3.1 g/t AuEq) over 12.2m, including 14.55 g/t Au and 11 g/t Ag (14.67 g/t AuEq) over 1.53m. “The drilling appears to be defining a footprint of mineralization approximately 500m X 500m with expansion potential to the southeast”.
  • Riverside Resources Inc., announced results from the first drill hole testing the Santa Rosalia target at its the Cuarentas project. Hole LC20-010 intersected 0.36 g/t Au over 3.15m, including 0.88 g/t Au over 0.7m, plus 0.58 g/t Au over 1.55m, including 1.05 g/t Au over 0.65m. “The Cuarentas epithermal vein drilled mineralized area intersected at surface and appears to be the upper part of a copper-gold porphyry system that is potentially responsible for the extensive >6km area including sericite and pyrophyllite alteration”. Riverside is highlighting the possibility of a feeder system of intermediate sulphidation along the Testerazo fault corridor.
  • Vizsla Silver Corp., released new results from its ongoing 100,000m drilling program at its Panuco project. These new results are from ten holes completed at Cordon del Oro area, on which nine out of the ten holes intersected a new east-west trending vein within the San Antonio Vein corridor. The most significant drill intercepts were encountered in holes CO-21-44 with 6.64 g/t Au and 705 g/t Ag (1,283 g/t AgEq) over a true width (TW) of 2.07m, including 14.65 g/t Au and 1,365 g/t Ag (2,649 g/t AgEq) over a TW of 0.78m; and hole CO-21-50 with 2.59 g/t Au and 747 g/t AgEq (943 g/t AgEq) over a TW of 2.17m, including 4.23 g/t Au and 1,230 g/t Ag (1,551 g/t AgEq) over a TW of 1.18m.  Drilling results have delineated near-surface mineralization zone of 200m along strike and 100m down dip, and remain open in all directions. Next step is to expand this new zone both at depth and laterally.
  • Canasil Resources Inc., informed that it has completed three holes and a fourth is on progress at its Nora project in Durango. All holes were collared below and between high-grade gold and silver intercepts from the 2020 drill holes NRC-20-04 and NRC-20-06 on the Candy vein structure. A total of 790 metres of core drilling has been completed since the start of the program in early July 2021. 110 core samples from holes NRC-21-09 y NRC-21-10 have been already shipped to the lab for assays.
  • Mithril Resources Ltd., provided a report of the exploration activities carried out at its Copalquin project during the period Q2, 2021. Highlights include a) drilling at El Refugio target has extended the known mineralization to 700m X 350m; the discovery of the “77 Clavo” with bonanzas grades  such as those encountered in hole CDH-077 with 80.3 g/t Au and 705 g/t Ag over a length of 8.26m, including 106 g/t Au and 913 g/t Ag over a length of 6.26m, including 837 g/t Au and 6,680 g/t Ag over a lengths of 0.77m; b) Continue expansion of the El Refugio Clavo with multiple high-grade intercepts including hole CDH-075 with 13.8 g/t Au and 83 g/t Ag over a length of 2.70m, plus 10.9 g/t Au and 364 g/t Ag over a length of 4.25m; hole CDH-063 with 5.32 g/t Au and 105 g7t Ag over a length of 83; hole CDH-062 with 4.12 g/t Au and 107 g/t Ag over a length of 4.82m; and hole 2.34 g/t Au and 144 g/t Ag over a length of 7.60m; c) Confirmation of the El Cometa bonanza grades with twin of historic drill hole CDH-072 which intersected 74 g/t Au and 841 g/t Ag over a length of 6.8m, including 235 g/t Au and 2,554 g/t Ag over a length of 2.1m; d) Results from 240 soil samples collected at El Refugio Zone have extended the target zone for drilling a full 1.3Km west from the currently westernmost drill holes; and e) the company is preparing a maiden JORC resource estimate for El Refugio/El Cometa Zones and is expected to be completed by H2, 2021.
  • Almaden Minerals ltd., commenced prospect drilling at its Ixtaca property in Puebla. Focus of the drilling program is the Southeast Alteration Zone (SE Alteration Zone) located approximately 1km from the Ixtaca deposit. The SE Alteration Zone measures about 1.5Km x 1km and comprises clay-altered volcanic rocks with clusters of anomalies identified from a hyperspectral survey, including kaolinite, alunite, and buddingtonite.  Work exploration of this area has also included geophysics and geological mapping.

ON MINING

  • Mexus Gold US announced that mining continues at the Vein 2 Area within its Santa Elena mine in Sonora.  “Mining is currently being developed at the quartz vein with 1 to 1.5 meter with some wider pocket zones. Mexus has found 10 g/t gold zones randomly with notable oxide coloring due to former sulphides. Thrust fault shear mineral is being worked around it and only high grade quartz vein is loaded and hauled”. Pregnant solution from the heap leach pad is ranging from 0.3 to 1.7 g/t Au and is treated by Carbon absorption. One ton of loaded carbon is en route to Chicago for processing for final sale which will allow Mexus to increase production on a weekly basis.
  • Santacruz Silver Mining Ltd., reported Q2, 2021 production results from their Zimapan and Rosario mines in Hidalgo and San Luis Potosi respectively. At Zimapan, Hidalgo, the company processed 155,047 tonnes of 84 g/t Ag, 0.6% Pb, 2.5% Zn, and 0.38% Cu (202 g/t AgEq) to produce 310.9K Oz Ag, 0.67M Lb Pb, 6.38M Lb Zn, and 1.08M Lb Cu  (757.9K Oz AgEq). At Rosario mine, San Luis Potosi, Santacruz processed 16,917 tonnes of 45 g/t Ag, 0.16 g/t Au, 0.2% Pb, and 1.4% Zn (104 g/t AgEq) to produce 18.49K Oz Ag, 53 Oz Au, 69.4K Lb Pb, and 394.2K Lb Zn (41.1K Oz AgEq).
  • Alamos Gold Inc., presented Q2, 2021 production and financial results from its Mulatos mine in Sonora. It produced 35.9K Oz Au and sold 28.67K Oz Au at a cost of USD $1,395 and USD $893 per Oz Au produced respectively, and an AISC of USD $1,144 per Oz Au sold. Alamos also provided a 2021 guidance and expects to produce between 150K-160K Oz Au at total and AISC of USD $840-890 and USD $1,060-1,110 per Oz Au respectively.
  • Capstone Mining Corp., announced Q2, 2021 production and financial results from its Cozamine mine in Zacatecas. The company mined 332K tonnes and milled 348K tonnes of 1.86% Cu, 0.5% Zn, and 40 g/t Ag with metallurgical recoveries of 96.3%, 46.7%, and 82.1% respectively, to produce 13.8M Lb Cu, 1.88M Lb Zn, and 364K Oz Ag. Cash cost was USD $1/lb Cu produced. Cozamine reported revenues for USD $68.6M and an adjusted EBIDTA of USD $50M.
  • Agnico Eagle Mines Limited reported Q2, 2021 from their Mexican operations in Chihuahua and Sonora. At Pinos Altos, Chihuahua, Agnico processed 521K tonnes of 2.07 g/t Au to produce 32.6K Oz Au and 331K Oz Ag at a production and total cash costs of USD $1,106 and USD $849 per Oz Au produced respectively. At Creston-Mascota, Chihuahua, the company produced 3.23K Oz Au and 41K Oz Ag at production and total cash costs of USD $608 and USD $341 per Oz Au produced respectively from residual leaching . At La India, Sonora, it processed 1.745M tonnes of 0.46 g/t Au to produce 4.7K Oz Au and 7K Oz Ag at costs of USD $1,390 and USD $1,350 per Oz Au produced respectively.
  • Coeur Mining Inc., presented Q2, 2021 production and financial results from its Palmarejo mine in Chihuahua. The company milled 517,373 tonnes of 1.8 g/t Au and 122 g/t Ag with metallurgical recoveries of 92.4% and 81.9% respectively to produce 27.6K Oz Au and 1.67M Oz Ag. Coeur sold 30.5K Oz Au and 1.64M Oz Ag at an adjusted cost of USD $662 and USD $13.34 per Oz Au sold and Oz Ag sold respectively. The company reported a cash flow of USD $33.4M and a free cash flow of USD $23.6M.
  • Gold Resource Corporation announced Q2, 2021 production and financial results from its Arista mine in Oaxaca. The company milled 129.6K tonnes of 1.93 g/t Au, 77 g/t Ag, 0.4% Cu, 1.6% Pb, and 3.6% Zn at total cash and AISC of USD $713 and USD $1,280 respectively to produce 5,697 Oz Au, 270.3K Oz Ag, 817.6K Lb Cu, 2.72M Lb Pb, and 7.15M Lb Zn (9,685 Oz AuEq). Gold Resource reported an EBIDTA of USD $7.4M and an operating cash flow of USD $9.3M.
  • Mag Silver Corp., and its JV partner Fresnillo plc reported Q2, 2021 production results from its Juanicipio project in Zacatecas. Mag Silver (44%) and Fresnillo plc (56%) processed 44,435 tonnes of underground development material to produce 434.9K Oz Ag and 787 Oz Au of which 191.35K Oz Ag and 346 Oz Au are attributable to Mag Silver. The associated lead and zinc production will be reported with MAG’s second quarter filings.

ON FINANCING

  • Gold Resource Corporation declared quarterly dividends of $0.01 per common share to shareholders for the period Q2, 2021 payable on September 30, 2021 (Arista mine, Oaxaca).
  • Guanajuato Silver Company Ltd., announced it has drawn down USD $7.5M from its loan facility with trading firm OCIM Group. This financing will be used to restarts its El Cubo mine and mill complex in Guanajuato.

ON RESOURCES AND DEVELOPMENT

  • Chesapeake Gold Corp., released results of its PEA for the Phase 1 mine plan of its Metates project, Durango. The PEA demonstrates robust project economics such as Pre-Tax NPV of USD $1.14B and 35% IRR at USD $1,600 per Oz Au and USD $22 per Oz Ag at a 5% discount rate, over a 31-year mine life. The PEA includes a revised mineral resource estimate for the Metates Project and replaces the mineral reserve estimate contained in the Company’s updated preliminary feasibility study dated April 29, 2016. The measured and indicated mineral resource is 1.3 billion tonnes at 0.47 g/t gold and 12.9 g/t silver for 19.8M Oz Au and 542M Oz Ag. Inferred mineral resource is an additional 62.2M tonnes at 0.32g/t gold and 9.0 g/t silver for 640K Oz Au and 18M Oz Ag. The PEA reports an average annual production of over 110K Oz Au and 2.5M Oz Ag during the first 15 years at AISC of USD $748 per Oz Au produced.
  • Fabled Silver Gold Corp., reported drill results and announced expansion of its ongoing drilling program at the Santa Maria project, Chihuahua to 14,200m. Hole SM20-21 intersected 0.16 g/t Au, 7 g/t Ag, 0.4% Pb, 0.1% Zn, and 0.01% Cu (15 g/t Ag) over 18.9m, including 0.62 g/t Au, 16 g/t Ag, 0.2% Pb, 0.5% Zn, and 0.01% Cu (63 g/t AgEq) over 2.10m; and hole SM20-22 intersected 4.95 g/t Au, 13 g/t Ag, 0.1% Pb, 0.3% Zn, and 0.02% Cu (268 g/t AgEq) over 14.4m, including 7.17 g/t Au, 16 g/t Ag, 0.1% Pb, 0.3% Zn, and 0.03% Cu (385 g/t AgEq) over 9.5m, plus 0.94 g/t Au, 59 g/t Ag, 0.5% Pb, 0.4% Zn, and 0.04% Cu (107 g/t AgEq) over 3.1m, including 1.05 g/t Au, 66 g/t Ag, 0.8% Pb, and 0.04% Cu (120 g/t AgEq) over 1m, including 1.56 g/t Au, 78 g/t Ag, and 0.07% Cu (158 g/t AgEq) over 0.9m. The company expanded the present drilling by 5,000m to a total of 14,200m to properly evaluate the mineralization at the Santa Maria property.
  • GoGold Resources Inc., continued released results from five holes drilled at its Los Ricos North project in Jalisco. The best drill intercept was encountered in hole LRGF-21.052 with 0.31 g/t Au, 113 g/t Ag (1.82 g/t AuEq or 136 g/t AgEq) over a length of 51.3m, including 0.96 g/t Au, 235 g/t Ag (4.1 g/t AuEq or 307 g/t AgEq) over a length of 11.4m, including 2.78 g/t Au and 1,367 g/t Ag (21.01 g/t AuEq or 1,576 g/t AgEq) over a length of 0.9m, including  2.65 g/t Au and 336 g/t Ag (7.13 g/t AuEq or 535 g/t AgEq) over a length of 3m, including 9.63 g/t Au and 655 g/t Ag (18.35 g/t AuEq or 1,376 g/t AgEq) over a length of 0.7m, plus 0.18 g/t Au and 169 g/t Ag (2.44 g/t AuEq or 183 g/t AgEq) over a length of 1.5m. Another significant drill intercept was encountered in hole LRGF-21-054 with 0.20 g/t Au and 77 g/t Ag (1.24 g/t AuEq or 93 g/t AgEq) over a length of 63.6m, including 1.1 g/t Au and 401 g/t Ag (6.46 g/t AuEq or 484 g/t AgEq) over a length of 5.6m, including 1.52 g/t Au and 539 g/t Ag (8.71 g/t AuEq or 653 g/t AgEq) over a length of 4m, including 1.96 g/t Au and 784 g/t Ag (12.41 g/t AuEq or 931 g/t AgEq) over a length of 1m.
  • Golden Tag Resources Ltd., filed with SEMARNAT a drill permit to quadruple the number of drill pads from 14 to 58 at its San Diego project, Durango. The drill permit is expected to be obtained during Q3, 2021.

ON DEALS AND CORPORATE ISSUES

  • Commander Resources Ltd., granted an option to Southern Empire Resources Corp. to acquire a 100% interest in the Pedro project, Durango. Pedro is an epithermal gold project with potential for both bulk mineable and bonanza-grade vein deposit and comprises 1,750 Ha in three mineral claims. Total consideration for the option is CDN $700K as follow: CDN $25K and 100K shares on completion of a definitive agreement, CDN $125K on the first agreement anniversary, CDN $250K on the second anniversary, and CDN $300K on the third anniversary.  Southern Empire also must to complete CDN $1.5M in exploration expenditures, including CDN $400K within the first year of the agreement. Commander will retain a 2% NSR royalty with no buydown provision.
  • Vizsla Silver Corp., announced the appointment of its VP of Business Development and Strategy (Panuco project, Sinaloa).
  • SilverCrest Metals Inc., announced the appointment of its VP of Technical Services (Las Chispas, Sonora).
  • Altaley Mining Corporation launched its completely renewed corporate website with modern design to facilitate the access to its information (Campo Morado mine, Guerrero).

ON SOCIAL RESPONSIBILITY

  • Grupo Mexico delivered 9,000 trees for forestry program to the Municipality of San Francisco del Rincón, Aguascalientes. This program called “Mexicanos Sembrando” is one of the initiatives that have been generated to take care of the environment.
  • Fresnillo plc and Industrias Peñoles S.A.B. de C.V., have implemented strategies for the care and management of water for their operational processes in all their mines and plants. Both Peñoles and Fresnillo plc collaborate with the communities with campaigns to raise awareness about the use and conservation of the resource.  Likewise, they support the human right to access to water in nearby towns through the service of pipes and support the population with rainwater collectors. In the same way, Peñoles participates in community projects such as the creation of water wells in different localities of Guerrero, Durango, Sonora and Chihuahua.

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 quartz vein displaying boiling texture in a low sulphidation epithermal vein system from a prospect in San Luis Potosi, Mexico.  Photo by Miguel A Heredia.

The Mining and Exploration News in Mexico: Highlights on the Second Week of July, 2021

By Jorge Cirett

During the 27th week of the year (July 5th to July 11th, 2021), at least 22 press releases were announced by companies working in Mexico. To note, six companies posted exploration advances on their properties, four on quarterly production and one about the end of an illegal blockade 17 months long, one posted on financing, five more on project development or resource definition and one posted an update on a law suite. ON MEXICO ISSUES, the illegal blockade on Americas Gold and Silver Cosalá operations in Sinaloa was terminated. Mexico has fallen 13 places on the Fraser’s Index on Mining Attractiveness, affected by perceptions on security and rule of law. ON EXPLORATION, in Sonora, Benjamin Hill Mining released surface assay results high in Cu and Au; Tocvan Ventures released results from RC drilling at Pilar. In Sinaloa, Brigadier Gold released drilling and underground sampling results from Picachos. In Durango, Canasil started drilling at Nora. In Zacatecas, Zacatecas Silver signed surface access agreements to the San Gill zone at its Zacatecas Silver project. In Oaxaca, Madoro Metals updated on exploration at Yautepec. ON MINING, GoGold Resources, Gatos Silver, Endeavour Silver and Torex Gold presented second quarter 2021 production results. Americas Gold and Silver signed an agreement with several ministries to reopen Its Cosalá operations in Sinaloa.  ON FINANCING, Gold79 Mines commenced trading on the OTCQB Venture Market in USA. Minaurum Gold closed a financing round for C$9.2 M. ON RESOURCES AND DEVELOPMENT, Southern Silver released drilling results from Cerro Las Minitas in Durango. GR Silver Mining, reported drill hole results from Plomosas in Sinaloa. Capitan Mining reported RC holes results from Peñoles, Durango. Guanajuato Silver provided drilling results from Pinguico, Guanajuato. Fabled Silver reported underground drilling results from Santa Maria, Chihuahua. ON DEALS AND CORPORATE ISSUES, Excellon Resources informed on a legal suite regarding the Miguel Auza mine in Zacatecas. ON SOCIAL RESPONSIBILITY, Fresnillo PLC, Minera Autlán and Newmont Peñasquito informed on activities supporting sports, the environment and community equipment in different localities.

ON MEXICO ISSUES

  • Mexico has fallen 13 places in the Fraser’s Index of Mining attractiveness from 2008 to 2020. Investment also saw a 42.8% reduction in the same period, including some effect by the pandemic. Security, labor regulations, political instability, lack of mining concessions and a nationalization streak in the current government were cited as deterrents to investment in the country. Those viewpoints are reflected in less investment, less employment and fewer opportunities to find new orebodies, factors that will lead to  reductions in production and taxes to be paid in the coming years.
  • The illegal blockade on Americas Gold and Silver Cosalá operations is off. After 17 months of illegal blockade, the negotiations aided by the federal government can hardly be called a success. Events like this one add to the deterioration on the global perception of Mexico as a good place for mining investment.
  • The AIMMGM (Asociación de Ingenieros de Minas, Metalurgista y Geólogos de México) stated through its president Sergio Almazán, that investment in the Mexican mining sector has been affect by the lack of certitude.

ON EXPLORATION

  • Benjamin Hill Mining Corp. released assay results from surface sampling at the Caracahui, Caracahui Norte and Sonora Copper areas from its Sonora Gold property in Sonora. Some of the highlighted comprise: 0.1 gpt Au, 12.2% Cu, 80 gpt Ag; 1.7 gpt Au, 10.2% Cu, 15 gpt Ag; 4.4% Cu, 8 gpt Ag; 0.2 gpt Au, 4.3% Cu, 25 gpt Ag; 1.2 gpt Au, 2.4% Cu, 98 gpt Ag; 0.1 gpt Au, 1.9% Cu, 3 gpt Ag; 0.6 gpt Au, 1.5% Cu, 24 gpt Ag; 2.2 gpt Au, 0.9% Cu, 17 gpt Ag; 15.9 gpt Au, 0.4% Cu, 3 gpt Ag; 3.3 gpt Au, 0.1% Cu, 47 gpt Ag; 2.5 gpt Au, 0.1% Cu, 65 gpt Ag; 2.4 gpt Au, 0.5% Cu, 7 gpt Ag; 2.2 gpt Au, 0.9% Cu, 17 gpt Ag; 2.0 gpt Au, 0.3% Cu, 53 gpt Ag. “The recent advancement of exploration on the Sonora Gold concession has identified expansive copper mineralization along broadly continuous structural trends which have not yet been fully explored”.
  • Canasil Resources Inc. announced the start of the 2021 drill program at the Nora project in Durango. The initial focus is to test below, between and on strike extensions from high-grade Au and Ag intercepts from the 2020 program. Highlighted true width intercepts from the previous campaign include 2.40 m @ 4.78 gpt Au, 351 gpt Ag; 1.49 m @ 11.86 gpt Au, 378 gpt Ag and 3.05 m @ 3.71 gpt Au, 489 gpt Ag, with Pb, Zn, Cu credits.
  • Brigadier Gold Ltd. released drilling and underground sampling results from its Picachos project in Sinaloa. Highlighted underground sampling results comprise 0.3 m @ 31.4 gpt Au, 11 gpt Ag, 0.2% Cu, 0.5% Pb, 2% Zn; 3.2 m @ 7.43 gpt Au, 0.1% Pb, 0.2% Zn; 0.9 m @ 4.64 gpt Au, 0.1% Pb, 0.1% Zn; 0.5 m @ 38.88 gpt Au, 22 gpt Ag, 0.4% Cu, 1.7% Pb, 1.5% Zn; 1.0 m @ 12.79 gpt Au, 8 gpt Ag, 0.1% Cu, 0.9% Pb, 0.9% Zn. A surface trench returned 8 m @ 2.14 gpt Au, 0.1% Pb. Highlighted core length intervals comprise 6.5 m @ 0.26 gpt Au, 6 gpt Ag; 60.3 m @ 0.41 gpt Au, 0.2% Zn (including 4.5 m @ 0.56 gpt Au, 0.1% Pb, 0.1% Zn and 7.5 m @ 0.98 gpt Au, 0.1% Zn); 113 m @ 0.19 gpt Au, 0.1% Pb, 0.2% Zn (including 1 m @ 6.89 gpt Au, 0.1% Zn; 4 m @ 1.85 gpt Au; 1 m @ 5.51 gpt Au, 0.1% Zn); 123 m @ 0.27 gpt Au, 0.1% Pb, 0.2% Zn (including 4 m @ 1.08 gpt Au; 4 m @ 1.10 gpt Au, 0.4% Pb, 1.7% Zn; 1 m @ 3.51 gpt Au, 0.1% Pb).
  • Madoro Metals Corp. provided an update on recent exploration results from its Yautepec project in Oaxaca. A previously unknown 7 km long trend of epithermal alteration was found in the southern part of the project by company geologists. Highlighted results comprise 0.10 m @ 12.35 gpt Au, 1,250 gpt Ag in a quartz vein grab sample within a stockwork complex 400 by 200 m in the Tecolote zone; 0.10 m vein @ 0.54 gpt Au, 0.16% Cu, 1.3% Zn on the Southern Dike zone.
  • Zacatecas Silver Corp. completed access agreements with landowners at the San Gill breccia zone and San Gill vein system at its Zacatecas Silver project in Zacatecas. Environmental reports have been sent to SEMARNAT for the drilling of the Panuco and San Gill systems, and a third one is being prepared for El Cristo zone.
  • Tocvan Ventures Corp. released results from six reverse circulation drill holes at its Pilar project in Sonora. The phase II program sunk over 3,500 m in 20 holes, highlighted core length intervals comprise 44.22 m @ 0.41 gpt Au, 4 gpt Ag (including 7.63 m @ 1.66 gpt Au, 7 gpt Ag); 47.27 m @ 0.75 gpt Au, 5 gpt Ag (including 12.20 m @ 1.12 gpt Au and 19.82 m @ 1.06 gpt Au).

ON MINING

  • GoGold Resources Inc. reported production of 315.6 K Oz Ag, 3,170 Oz Au, 120 tonnes Cu during the second quarter of 2021 at its Parral tailings project in Chihuahua.
  • Americas Gold and Silver Corp. signed an agreement with the Mexican Ministries of Economy, Interior and Labour committing to a reopening of its Cosalá operations in Sinaloa, shut by an illegal blockade spanning 17 months. “After the long period of denied access, the agreement contemplates immediate right to possession of the property with a joint inspection coordinated by the Ministry of Labor this Thursday, so that the mine can restart operations in a safe and sustainable manner”.  
  • Gatos Silver Inc. released its production report for the second quarter of 2021, which constitute a record for the company. A total of 240 K tonnes were mined, 230.6 K tonnes were milled at a daily rate of 2,535 tonnes, with an average grade of 322 gpt Ag, 0.35 gpt Au, 2.51% Pb, 4.41% Zn, with recoveries of 89% Ag, 63% Au, 90% Pb, 75% Zn, to produce 2.1 M Oz Ag, 1.5 K Oz Au, 11.2 M lb Pb, 14.5 M Lb Zn in Pb and Zn concentrates.
  • Endeavour Silver Corp. reported production results for the second quarter 2021. During the period 1.07 M Oz Ag, 11,166 Oz Au were produced. The El Cubo mine in Guanajuato was sold to Guanajuato Silver Corp..
  • Torex Gold Resources Inc. released production results for Q2 2021. At its El Limón-Guajes mine in Guerrero, a total of 118,050 Oz Au was produced, with an average plant throughput of 11,980 tpd, average underground ore mined of 1,420 tpd and an average open pit ore mined of 12,430 tpd.

ON FINANCING

  • Gold 79 Mines Ltd. commenced trading on the OTCQB Venture Market in the United States, operated by the OTC Markets Group Inc., under the stock symbol AUSVF (Taviche , Oaxaca).
  • Minaurum Gold Inc. closed a previously announced bought deal public offering, for gross proceeds of C$9.2 M. Due to the demand, the offering was upsized from the original gross proceeds of C$7 M. The offering included an investment from Crescat Capital (Alamos Silver, Sonora).

ON RESOURCES AND DEVELOPMENT

  • Southern Silver Exploration Corp. released drilling results that extend mineralization at the South Skarn and La Bocona areas at its Cerro Las Minitas project in Durango. True width core intervals comprise 1.8 m @ 161 gpt Ag, 0.1 gpt Au, 4.9% Pb, 3.0% Zn (including 0.4 m @ 422 gpt Ag, 0.4 gpt Au, 13.2% Pb, 9.1% Zn); 2.6 m @ 159 gpt Ag, 0.1 gpt Au, 2.4% Pb, 3.5% Zn; 14.0 m @ 162 gpt Ag, 0.2 gpt Au, 1.4% Pb, 0.5% Zn; 1.1 m @ 227 gpt Ag, 0.1 gpt Au, 3.7% Pb, 1.9% Zn. As of May 2019, the indicated resources stood at 37.5 M Oz Ag, 40 M Lb Cu, 303 M Lb Pb, 897 M Lb Zn; and inferred resources at 45.7 M Oz Ag, 76 M Lb Cu, 253 M Lb Pb, 796 M Lb Zn.
  • GR Silver Mining Ltd. reported results from the final drill holes to be incorporated in to the incoming resource estimation on the Plomosas mine area of the Plomosas project in Sinaloa. True width highlighted intervals comprise 29.5 m @ 1.13 gpt Au, 0.1% Zn (including 9.1 m @ 2.12 gpt Au, 0.1% Pb, 0.1% Zn); 6.4 m @ 0.81 gpt Au, 0.1% Zn; 3.6 m @ 163 gpt Ag, 0.05 gpt Au, 6.4% Pb, 3.7% Zn, 0.2% Cu; 6.1 m @ 120 gpt Ag, 0.48 gpt Au, 2.8% Pb, 0.7% Zn, 0.1% Cu; 0.9 m @ 5.24 gpt Au, 0.2% Pb, 0.2% Zn; 11.8 m @ 328 gpt Ag, 0.19 gpt Au, 0.5% Pb, 1.2% Zn; 1.0 m @ 680 gpt Ag, 0.04 gpt Au, 0.6% Pb, 2.4% Zn; 4.9 m @ 143 gpt Ag, 1.2% Pb, 4.3% Zn.
  • Capitan Mining Inc. reported results for four reverse circulation drill holes from the Capitan deposit at its Peñoles project in Durango. Highlighted intervals comprise 56.4 m @ 0.58 gpt Au, 14 gpt Ag (including 10.7 m @ 0.99 gpt Au, 16 gpt Ag); 38.1 m @ 0.26 gpt Au; 6.1 m @ 0.28 gpt Au, 5 gpt Ag; 187.5 m @ 0.23 gpt Au, 1 gpt Ag (including 29.0 m @ 0.51 gpt Au, 3 gpt Ag); 10.7 m @ 0.25 gpt Au, 4 gpt Ag; 41.1 m @ 0.24 gpt Au, 5 gpt Ag. Capitan Mining expects to complete a 6,000 m reverse circulation program during the summer whilst continuing exploration work on additional targets.
  • Guanajuato Silver Company Ltd. provided drilling results from El Pinguico, Guanajuato. Highlighted core length results comprise 1.65 m @ 2.45 gpt Au, 125 gpt Ag; 7.95 m @ 1.35 gpt Au, 39 gpt Ag (including 0.75 m @ 8.81 gpt Au, 208 gpt Ag); 8.10 m @ 1.00 gpt Au, 93 gpt Ag (including 0.90 m @ 5.96 gpt Au, 476 gpt Ag). GS Silver is planning a 3,800 m 18-hole strong drill program, with the aim of estimating resources.
  • Fabled Silver Gold Corp. announced results from underground drilling at the Santa Maria property in Chihuahua. Results comprise 9.90 m @ 0.08 gpt Au, 17 gpt Ag, minor (<0.1%) Pb-Zn-Cu; 1.20 m @ 0.08 gpt Au, 13 gpt Ag, minor Pb-Zn-Cu; 18.0 m @ 0.24 gpt Au, 20 gpt Ag, minor Pb-Zn-Cu; 2.40 m @ 0.06 gpt Au, 36 gpt Ag, minor Pb-Zn-Cu; 0.80 m @ 0.24 gpt Au, 302 gpt Ag, 0.1% Pb, 0.25% Zn; 6.30 m @ 0.04 gpt Au, 17 gpt Ag, minor Pb-Zn-Cu.

ON DEALS AND CORPORATE ISSUES

  • Excellon Resources Inc. informed on the legal action regarding the Antigua concession within its Evolution project in Durango. A subsidiary of Excellon, San Pedro Resources SA de CV has been mandated in court to pay US$23 M in damages for not having in operation the Miguel Auza mine. “Excellon understands from an initial electronic notice that San Pedro’s appeal of this decision to the federal courts of Mexico was dismissed on July 1, 2021, despite the decision not being supported by the evidence, facts or law”.

ON SOCIAL RESPONSIBILITY

  • Fresnillo PLC informed on the re-activation of sports programs in Coahuila.
  • Minera Autlán supports an environmental project in Hidalgo.
  • Fresnillo PLC backs the environment in Durango, aiding the El Porvenir sustainable forest.
  • Newmont Peñasquito installed a solar powered pumping system at El Nuevo Vergel, Zacatecas.

On the image below:  Structure in andesitic rocks exposed on a road cut in Sonora. Picture by Jorge Cirett.