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

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By Jorge Cirett                                             

During the 36th week of the year (September 2nd to September 8th, 2024), companies working in Mexico posted at least 17 press releases. One company informed on exploration advances on its property, one company closed a financing tranche and one other its intentions to make a private placement. A company granted stock options, one other informed on the purchase of debentures and one more on the inclusion of its stock in another index. Two companies released drilling results from its advanced properties, one more of the inclusion of a satellite deposit on its mining plans and one other on the test mining and processing of an historical operation. A company informed on the agreement to acquire another enterprise with a mining operation and a good land package. One company appointed a director, one other informed on the sale of its Mexican assets, and one other on the optioning of an interesting property. ON MEXICO ISSUES, the USA’s House of Representatives sent a letter to its Commercial Representative urging to seek assurance from the Mexican outgoing and incoming government to not pass rules on the proposed constitutional reforms that infringe T-MEC’s rules. ON EXPLORATION, In Durango, Silver Wolf commenced drilling at Ana Maria. ON MINING, no relevant news. ON FINANCING, Guanajuato Silver granted 330 K options. Argonaut Gold announced the total value of debentures to be purchased is US$58.2 M. Capstone announced its addition to another Stock Index. Colibri Resource closed a first tranche of private placement for $305 K. Luca Mining is seeking a “best efforts” private placement for C$8.5 M. ON RESOURCES AND DEVELOPMENT, Prime Mining reported expansion drilling results at Panuco, in Sinaloa. Alamos Gold reported surface drilling results for Cerro Pelon and Puerto del Aire, at the Mulatos district in Sonora, seeking to augment resources for underground mining. Torex Gold reported an updated mining plan to include the EPO deposit at the Morelos Complex in Guerrero, which is to allow mining at a 450 K Oz Au yearly rate up to at least 2030. Sierra Madre Gold and Silver updated on test mining and processing at its La Guitarra mine in Estado de Mexico. ON DEALS AND CORPORATE ISSUES, Chesapeake Gold engaged automated market making services. Guanajuato Silver Company appointed a director. The note of the week was the announcement of the merger of Gatos Silver and/by First Majestic Silver. Riverside Resources optioned the Union property to Questcorp. Golden Minerals informed on the state of affairs of its Mexican assets. ON SOCIAL RESPONSIBILITY, Discovery Silver released its 2023 ESG report.

ON MEXICO ISSUES

  • An influential group in the USA’s House of Representatives sent a letter to Katherine Thai, Commercial Representative of USA urging her involvement with the actual president of Mexico, the elected president Claudia Sheinbaum and the recently installed Congress, to assure the proposed reforms by the actual president do no go against obligations under the T-Mex (formerly NAFTA). “We recognize the sovereign right of each government to update its constitution and deeply value the strong partnership between the United States and Mexico. However, many of the proposed reforms appear to compromise US investors’ access to a stable, predictable and impartial regulatory framework”. Of the ten signatories, nine are members of the Ways & Means Committee, which plays a crucial role in overseeing the implementation of the USMCA in the House of Representatives.

ON EXPLORATION

  • Silver Wolf Exploration Ltd. announced the commencement of drilling on the El Soldado claim at the Ana Maria project in Durango. The 2,500 m program envisages the drilling of 15 holes, targeting classic carbonate replacement deposits.

ON MINING

  • No Relevant News.

ON FINANCING

  • Guanajuato Silver Company Ltd. granted stock options to purchase 300 K shares at $0.25 (El Cubo, Guanajuato).
  • Argonaut Gold Inc. announced that more than 90% of its outstanding 4.625% senior unsecured convertible debentures were tendered to the offer to purchase de debentures launched by the company on July 24, 2024, in connection with the acquisition of all of the issued and outstanding common shares of Argonaut by Alamos Gold Inc. The total value of the debentures to be purchased or redeemed is expected to be US$58.2 M (La Colorada, Sonora).
  • Capstone Copper Corp. announced that the CHESS Depositary Interests (CDI) of the company will be added to the Standard & Poors/ASX 300 Index by the S&P Dow Jones (Cozamin, Zacatecas).
  • Colibri Resource Corp. closed the first tranche of its previously announced non-brokered private placement for aggregate proceeds of C$305 K. Certain insiders of the company acquired an aggregate of 550 K units of the offering for gross proceeds of C$27.5 K. Colibri also sold its RC drill rig to a private company in Hermosillo for a total consideration of C$395 K consisting in cash and drill credits. “A portion of the proceeds is expected to be applied to an upcoming drilling program at the EP Gold Project where the Company intends to complete its first drilling program at the high priority San Perfecto target”.
  • Luca Mining Corp. entered into an agreement with Stifel in connection with a “best efforts” private placement for aggregate proceeds of C$8.5 M, with the LIFE Units to be issued pursuant to the listed issuer financing exemption (LIFE). “The net proceeds from the Offering are expected be used for ongoing work on the Campo Morado Improvement Program, exploration drilling at both Campo Morado and Tahuehueto, commissioning of the Tahuehueto mill and for general corporate purposes”.

ON RESOURCES AND DEVELOPMENT

  • Prime Mining Corp. reported expansion drilling results from the Z-T Trend at its Los Reyes project in Sinaloa. Highlighted true width intercepts comprise 10.5 m @ 2.63 gpt Au, 522 gpt Ag (including 8.0 m @ 2.89 gpt Au, 572 gpt Ag); 4.1 m @ 2.87 gpt Au, 130 gpt Ag (including 2.1 m @ 5.23 gpt Au, 218 gpt Ag); 4.6 m @ 2.92 gpt Au, 49 gpt Ag (including 2.7 m @ 4.84 gpt Au, 57 gpt Ag); 4.1 m @ 2.88 gpt Au, 6 gpt Ag (including 0.7 m @ 12.95 gpt Au, 20 gpt Ag); 2.3 m @ 4.08 gpt Au, 12 gpt Ag (including 0.6 m @ 13.40 gpt Au, 40 gpt Ag). These intercepts highlight the potential to discover more high-grade shoots for underground development below and away from the planned pit.
  • Alamos Gold Inc. reported results from ongoing surface exploration drilling on Puerto del Aire (PDA) and Cerro Pelon, within the Mulatos District in Sonora. Drilling at Cerro Pelon is following up on wide high-grade underground oxide and sulphide intersections below the open pit. Also, surface drilling has extended high-grade mineralization across multiple zones within the PDA area. Highlighted true width intercepts comprise 27.90 m @ 5.45 gpt Au; 6.46 m @ 12.47 gpt Au (including 1.09 m @ 58.10 gpt Au); 15.82 m @ 4.79 gpt Au; 15.40 m @ 4.46 gpt Au; 12.16 m @ 5.64 gpt Au; 9.81 m @ 5.77 gpt Au; 13.85 m @ 4.01 gpt Au at Cerro Pelon, 18.05 m @ 5.77 gpt Au at the GAP-Victor Zone, 28.40 m @ 3.03 gpt Au; 5.50 m @ 6.63 m at the PDA3 Zone and 0.90 m @ 36.20 gpt Au; 5.05 m @ 3.51 gpt Au; 4.20 m @ 4.16 gpt Au at the PDA Extension Zone. At Cerro Pelon high-grade Au-Ag mineralization is in pipe-like geometries at the intersection of hundred of meters long structures, 50 to 200 m below the pit bottom. “PDA is a higher-grade underground deposit located adjacent to the main Mulatos pit and is comprised of multiple mineralized zones including PDA, Gap, Victor, and Estrella … A development plan for PDA will be released … based on Mineral Reserves as of the end of 2023.”
  • Torex Gold Resources Inc. reported “an updated life-of-mine plan for the Morelos Complex which incorporates the EPO underground deposit following completion of an internal pre-feasibility study on the deposit”. The production profile is now established at a minimum of 450 K Oz AuEq per year through 2030 on the mineral reserve case alone. EPO’s upfront capital expenditures are estimated at $81.5 M, by leveraging the investment made in infrastructure part of the Media Luna project. The EPO project hosts probable reserves of 5 M tonnes @ 2.27 gpt Au, 29.8 gpt Ag, 1.29% Cu (or 4.83 gpt AuEq), containing 367 K Oz Au, 4.8 M Oz Ag, 143 M Lb Cu (or 781 K Oz AuEq), indicated resources (inclusive of mineral reserves) of 7 M tonnes @ 2.66 gpt Au, 30 gpt Ag, 1.27% Cu (or 5.14 gpt Au), containing 597 K Oz Au, 6.7 M Oz Ag, 195 M Lb Cu (or 1.15 M Oz AuEq) and inferred resources of 5 M tonnes @ 2.00 gpt Au, 37 gpt Ag, 1.24 % Cu (or 4.52 gpt Au), containing 318 K Oz Au, 5.9 M Oz Ag, 136 M Lb Cu (or 721 K Oz Au). “Development of EPO is anticipated to commence in mid-2025 with first ore production expected in late 2026. EPO will be accessed via a 650 m ramp off the Guajes Tunnel with ore transported back to the ore handling system at Media Luna via a 1,000 m truck haulage tunnel”. For an interesting review on the geology of the EPO deposit, please take a look to the press release.
  • Sierra Madre Gold and Silver Ltd.  updated on the progress of test mining and processing at the Guitarra mine complex in Estado de Mexico. A total of 20.4 K tonnes have been processed on the flotation plant since late June at a rate of 300 tpd, and 335 tonnes of dry concentrate have been shipped. Test mining began with development from the La Guitarra mine, transitioning to in situ material. Production of back fill material from stopes mined in the 1990’2 and 2000’s was increased as planned. Once emptied, these stopes will receive the tailings paste fill.     

ON DEALS AND CORPORATE ISSUES

  • Chesapeake Gold Corp. engaged the services of ICP Securities Inc. to provide automated market making services (Metates, Durango).
  • Guanajuato Silver Company Ltd. welcomed Juan Martin Peña to the role of VP operations in Mexico. The company also announced the retirement of the father and son team of Gerardo and Hernan Dorado to pursue new business interests (El Cubo, Guanajuato).
  • Golden Minerals Co. “the Company sold its wholly-owned Mexican subsidiary, Minera Labri S.A. de C.V. (“Minera Labri”), to a private Mexican company for approximately US$445,500. Minera Labri previously owned the Velardeña Properties’ Plant 1, which together with the Velardeña mines, was sold to another privately-held Mexican group earlier in 2024. Upon consummation of that transaction, Minera Labri held no assets but held net operating losses and inflation-adjusted capital contributions. Under Mexican law, the balance of Minera Labri’s capital contribution accounts (“CUCAs”) may be bought and sold. All funds related to the sale of the CUCAs have now been received and are expected to be deployed to reduce existing liabilities of the Company and its subsidiaries.
  • First Majestic Silver Corp. and Gatos Silver Corp. entered into a definitive merger agreement pursuant to which First Majestic will acquire all of the issued and outstanding common shares of Gatos Silver. “The proposed Transaction implies a total equity value for Gatos of approximately US$970 million. Following completion of the Transaction, existing Gatos shareholders will own approximately 38% of First Majestic shares on a fully-diluted basis.” Consolidates the Santa Elena, San Dimas and Cerro Los Gatos districts under one banner, with a combined annual production of 30-32 M Oz AgEq including 15-16 M Oz Ag at an AISC of US$18.00-US$20.00 per Oz AgEq. The deal adds 103 K hectares of really prospective ground to the 245 K hectares First Majestic already holds in Mexico.
  • Riverside Resources Inc. and Questcorp Mining Inc. entered into a letter of intent (LOI) granting an option to Questcorp for the acquisition of 100% interest in the La Union project in Sonora. Riverside will receive C$100 K and 19.9% interest in the ownership of Questcorp upon investing C$5.5 M in the project. The envisaged deal includes payment of C$100 K in four years, 19.9% in shares and C$5.5 M on exploration expenditures. Riverside will retain a 2.5% NSR royalty on commercial production of the property. Union is a carbonate-hosted gold district with high grade gold-zinc in a 22 square km land package.

ON SOCIAL RESPONSIBILITY

  • No Relevant News.

On the image below: Chloritized porphyritic diorite with variable grain size and oriented crystals, HQ core. Picture by Jorge Cirett.

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

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Gold-bearing orogenic quartz vein

By Miguel A Heredia

During the 35th week of the year (August 26th to September 1st 2024), at least 28 press releases were announced by companies working in Mexico, and 3 news published by the media, with thirteen disclosing deals and corporate issues, five communicating production and financial results, five reporting resources and development of their properties, four commenting on Mexican issues, two announcing financing rounds, one informing on exploration results, and one discussing social issues. ON MEXICO ISSUES, Industrias Peñoles reported that its Tizapa mine in the State of Mexico suspended operations due to strike call promoted by the National Union of Mining, Metallurgical, Steel and Similar Workers of the Mexican Republic. In Mexico, the Constitutional Affairs Committee of the Chamber of Deputies agreed to discuss the initiative to ban open-pit mining, which set off alarms in the extractive industry. Mining companies in Mexico are concerned about their production is affected by the ban on open-pit in the country. Vizsla Silver and Silver Tiger reported the best drilling intercepts in Mexico on the fifth week of August, 2024. ON EXPLORATION, In Chihuahua, Quetzal Copper provided an update on its Cristinas project.  ON MINING, Aura Minerals announcedan update to its long-term production guidance (Aranzazu mine, Zacatecas). Bear Creek reported Q2, 2024 production results from its Mercedes mine in Sonora. Guanajuato Silver announced Q2, 2024 consolidated production and financial results from their Mexican operations. Luca Mining presented its consolidated production and financial results for Q2, 2024 (Campo Morado mine in Guerrero and Tahuehueto mine in Durango). Minera Alamos provided an operations update and Q2, 2024 financial results. ON FINANCING, Alamos Gold declared quarterly dividend (Mulatos mine, Sonora). Southern Silver closed the third and final tranche of its previously announced non-brokered private placement for gross proceeds of $211,530 (Cerro Las Minitas project, Durango). ON RESOURCES AND DEVELOPMENT, Silver Tiger reported results from its Pre-Feasibility Study drilling program at its El Tigre project in Sonora. Guanajuato Silver provided an operations update of their Mexican properties (Topia mine in Durango, San Ignacio mine in Guanajuato, and El Horcon mine in Jalisco). Vizsla Silver filed a PEA technical report on its Panuco project in Sinaloa. Vizsla reported results of 22 infill drill holes from its Copala project in Sinaloa. Xali reported that now it has two active projects in the El Oro mining district, state of Mexico.  ON DEALS AND CORPORATE ISSUES, Aztec Minerals announced the appointment of its strategic advisor (Cervantes project, Sonora).  Torex reported that it will be hosting an analysis and investor day on September 5, 2024 (El Limon Guajes project, Guerrero). Goldgroup announced marketing agreement (Cerro Prieto mine, Sonora).  Plata Latina granted stock options to its Directors, Officers, and Consultants (Naranjillo project, Guanajuato). Silver Storm announced that it is providing bi-weekly update on the status of its management cease trade order (MCTO) issued on July 30, 2024. Vizsla Royalties advised that it had elected to halt trading of its warrants but later on it announced that it had been advised by the TSX Venture Exchange (TSX-V) that the warrants of the company will resume trading on the TSX-V (Panuco project, Sinaloa). Regency Silver announced the appointment of a new member to its Advisory Committee (Dios Padre project, Sonora). Endeavour Silver is being investigated by The Schall Law Firm for securities fraud (Guanacevi mine, Durango). Galore provided a status report regarding its Management Cease Trade Order (MCTO) issued by the British Columbia Securities Commission (Dos Santos project, Zacatecas). Torex reported a contractor fatality at it’s the Morelos Complex, Guerrero. Luca Mining clarified an early warning report issued by Trafigura regarding a debt restructuring agreement (Campo Morado mine, Guerrero). Royalties Inc., announced that it continues advancing in monetizing its Bilbao property in Zacatecas, and achieving success in lawsuit against Capstone Gold to properly recognize and pay a NSR as part of the Cozamine mine in Zacatecas. ON SOCIAL RESPONSIBILITY, Orla Mining released its 2023 sustainability report (Camino Rojo mine, Zacatecas).

ON MEXICO ISSUE

  • Industrias Peñoles S.A.B de C.V., reported that its Tizapa mine in the State of Mexico, suspended operations due to strike call promoted by the National Union of Mining, Metallurgical, Steel and Similar Workers of the Mexican Republic. The facility was the subject of scrutiny by the authorities in recent months, due to a request from the United States to review a possible violation of labor rights, within the framework of the North American trade agreement, USMCA, which the company denied. The company stated that it “fully” complies with the obligations of the labor agreement and local labor laws, and noted that “it will adhere to the corresponding legal and administrative procedures to resolve this conflict”.
  • In Mexico, The Constitutional Affairs Committee of the Chamber of Deputies agreed to discuss the initiative to ban open-pit mining, which set off alarms in the extractive industry, which demands an open parliament before approving a reform that they warn will generate shortages of essential resources in North America, in addition to having a fiscal impact of around MXP $30 billion in contributions to the Treasury by companies. Pedro Rivero Gonzalez, President of the Mexican Mining Chamber (CAMIMEX) stated that open-pit mining is very important for the country, not only because 60% of production in Mexico comes from this extractive technique, but also because the prohibition of this activity compromises more than MXP $30 billion in various fiscal contributions for the federal government, as well as a possible economic contraction estimated at MXP $250 billion annually (-1% of the National GDP).
  • Mining companies in Mexico are concerned about their production is affected by the ban on open-pit in the country. The Mexican Mining Chamber (CAMIMEX) revealed that if this initiative is approved, the mineral that would be most affected is copper because so far there are few deposits in Mexico that can be exploited underground. Almost 70% of the copper produced in the country is by open-pit. In this regard, analysts stated that the losses for the country could be double, since it is estimated that the price of copper will increase by up to 40%, which means that the profitability of companies such as Grupo México, Minera Frisco, Nemisa and Capstone Copper will see their income affected. According to CAMIMEX, banning open-pit mining will generate an economic contraction of 250 billion pesos and it estimated that more than a million formal jobs will disappear, a fact that worries companies that have exploration projects in Mexican territory.
  • Vizsla Silver Corp., and Silver Tiger Metals Inc., reported the best drilling intercepts in Mexico on the fifth week of August, 2024. Details are shown in the table below:

ON EXPLORATION

  • Quetzal Copper Corp., provided an update on its Cristinas project in Chihuahua. The company completed two drill holes and conducted a deep penetrating geophysical survey (InfiniTEM XL downhole) to better understand known electromagnetic anomalies. Drilling is set to resume soon, with the aim of completing the program by September 2024. Quetzal announced that it has completed the geophysical survey and are modelling the results to design the next phase of drilling, with plans to announce the results of the drill program in September 2024.

ON MINING

  • Aura Minerals Inc., announcedan update to its long-term production guidance with the recent acquisition of two mining rights. Aura plans to exceed 450K annual Oz AuEq consolidated production target in the coming years (Aranzazu mine, Zacatecas).
  • Bear Creek Mining Corporation reported Q2, 2024 production results from its Mercedes mine in Sonora (currency expressed in US dollars). The company mined 93,093 tonnes of 3.3 g/t Au with a metallurgical recovery of 94% and processed 95,727 tonnes of 3.23 with a metallurgical recovery of 94% to produce 9,304 Oz Au and 40,893 Oz Ag. Bear Creek sold 9,155 Oz Au at cash and AISC of $1,657 and $2,058 per Oz Au sold, at an average realized Au price of $2,318 per Oz. It also reported revenue of $22.1M; comprehensive loss after taxes of $11.2M; comprehensive loss per share of $0.05; adjusted loss after taxes of $8.6M; adjusted loss per share of $0.04; cash generated from operating activities of $4.8M; and cash used in investing activities of $5.4M. 
  • Guanajuato Silver Company Ltd., announced Q2, 2024 consolidated production and financial results from their Mexican operations (El Cubo, Valenciana and San Ignacio Mine complexes in Guanajuato, and Topia mine in Durango). (All currency is expressed in US dollars). The company mined 171,354 tonnes and milled 161,457 tonnes to produce 398.7K Oz Ag, 4,255 Oz Au, 806.3K Lb Pb, and 1.1M Lb Zn (823.7K Oz AgEq). It sold 403.1K Oz Ag, 4,306 Oz Au, 787.6K Lb Pb, and 1.07M Lb Zn (833.2K Oz AgEq) at a realized price of $26.78/Oz Ag, $2,334.24/Oz Au, $0.98/Lb Pb, and $1.29/Lb Zn. Cash and AISC per Oz AgEq were $19.93 and $25.55 respectively. Guanajuato Silver also announced consolidated financial results. The company reported revenue of $20.55M; cost of sales of $19.6M; mine operating income of $947K; mine operating cash flow before taxes of $3.89M; net loss of $2.75M; EBITDA of $2M; and adjusted EBITDA of $1.9M.
  • Luca Mining Corp., presented its consolidated production and financial results for Q2, 2024 (Campo Morado mine in Guerrero and Tahuehueto mine in Durango). (All currency is expressed in US dollars). Luca mined 159,096 tonnes and milled 153,676 tonnes to produce 4,278 Oz Au, 188.3K Oz Ag, 7M Lb Zn, 1.58M Lb Cu, and 1.5M Lb Pb (13,947 Oz AuEq). The company sold 3,629 Oz Au, 131.7K Oz Ag, 4.43M Lb Zn, 1.24M Lb Cu, and 546.5K Lb Pb (10,186 Oz AuEq) at a realized price of $2,315.12/Oz Au, $28.57/Oz Ag, $2,812.65/Tonne of Zn, $9,619.32/Tonne of Cu, and $2,148/Tonne of Pb. Cash and AISC per Oz AuEq were $1,490 and $1,766 respectively. Luca also presented consolidated financial results. It reported revenue of $18.2M; cost of sales of $15.5M; mine operating earnings of $2.7M; mine operating cash flow before taxes of $3.3M; net expenses of $4.67M, EBITDA of $6.15M; and adjusted EBITDA of $4.2M.
  • Minera Alamos Inc., provided an operations update and announced Q2, 2024 results as well as some guidance regarding improved operations activity so far during Q3, indicating significant progress at its Santana gold mine in Sonora, where mining and stacking rates are approaching levels last seen in 2022. Through the end of August 2024 approximately 3,400 Oz Au will have been placed on the Santana leach pad since the restart of mining activities in June. The company anticipates a return to cash generation by Q4 2024. Additionally, the Cerro de Oro project in Zacatecas is advancing through the permitting process, with the company having completed final payments for full ownership. The focus remains on developing low-capital expenditure assets while expanding resources and pursuing strategic acquisitions. Minera Alamos also presented selected financial data (amounts expressed in Canadian dollars). The company reported  revenue of $1.5M; cost of goods sold and depletion of $1.3M; mine operating income of $169.6K on sales of 505 Oz Au; net loss of $7M; cash and cash equivalents of $8.6M; and working capital of $14.48M.

ON FINANCING

  • Alamos Gold Inc., declared quarterly dividend of USD $0.025 per common share. The dividend is payable on September 26, 2024 to shareholders of record as of the close of business on September 12, 2024 (Mulatos mine, Sonora).
  • Southern Silver Exploration Corp., closed the third and final tranche of its previously announced non-brokered private placement for gross proceeds of $211,530 by issuing 961,500 at a price of $0.22 per unit. Together with the first two tranches, Southern Silver has raised a total of $3,604,035.16 by the issuance of 16,381,978 units. Gross proceeds will be used for the continued development of the Cerro Las Minitas project in Durango, and for working capital.

ON RESOURCES AND DEVELOPMENT

  • Silver Tiger Metals Inc., reported results from its Pre-Feasibility Study (PFS) drilling program at its El Tigre project in Sonora. The most significant drill intercepts were encountered in holes ET-23-531 (Stockwork Zone) with 0.47 g/t Au and 1 g/t Ag (0.48 g/t AuEq or 36 g/t AgEq) over 18.5m, plus 6.1 g/t Au and 9 g/t Ag (6.22 g/t AuEq or 466 g/t AgEq) over 1.5m, plus 0.29 g/t Au and 76 g/t Ag (1.3 g/t AuEq or 98 g/t AgEq) over 23.4m, including 1.2 g/t Au and 791 g/t Ag (11.75 g/t AuEq or 882 g/t AgEq) over 2.2m, plus 3.47 g/t Au and 29 g/t Ag (3.85 g/t AuEq or 289 g/t AgEq) over 1.6m, plus 1.59 g/t Au and 8 g/t Ag (1.7 g/t AuEq or 127 g/t AgEq) over 1.7m; hole ET-23-555 with 0.30 g/t Au and 16 g/t Ag (0.51 g/t AuEq or 39 g/t AgEq) over 8.8m (Stockwork Zone), plus 0.57 g/t Au and 12 g/t Ag (0.73 g/t AuEq or 55 g/t AgEq) over 69.1m, including 2.12 g/t Au and 1 g/t Ag (2.13 g(t AuEq or 160 g/t AgEq) over 7m, plus 4.16 g/t Au and 33 g/t Ag (4.59 g/t AuEq or 344 g/t  AgEq) over 2.3m (Seitz Kelly Vein), plus 0.09 g/t Au and 7 g/t Ag (0.18 g/t AuEq or 13 g/t AgEq) over 1.3m; and hole ET-23-562 with 0.59 g/t Au and 1 g/t Ag (0.6 g/t AuEq or 45 g/t AgEq) over 5.7m (Stockwork Zone), plus 0.46 g/t Au and 3 g/t Ag (0.51 g/t AuEq or 38 g/t AgEq) over 118.7m, plus 0.80 g/t Au and 28 g/t Ag (1.18 g/t AuEq or 89 g/t AgEq) over 2.6m (Seitz Kelly Vein). “These results further de-risk the project and, coupled with the advantageous geotechnical and metallurgical results, increase the confidence and size of the El Tigre Project.”
  • Guanajuato Silver Company Ltd., provided an operations update of their Mexican properties, detailing advancements at its wholly owned mines in Mexico, including Topia mine in Durango, San Ignacio mine in Guanajuato, and El Horcon mine in Jalisco. At Topia, Durango, the company has successfully commissioned a new filter system to enhance the recovery of gold, silver, lead, and zinc, with expectations of a 2% increase in metal recoveries. At San Ignacio, Guanajuato, a new ore sorter is nearing commissioning, which is anticipated to improve processing efficiency. At Horcon, Jalisco, the company has recommenced the processing of surface stockpile material. To date, over 28,000 tonnes of mineralized material has been processed, generating over 125,159 Oz AgEq from mid-November 2023 to June of 2024. “Additionally, at Horcon the company has completed an underground sampling program that has mapped and surveyed over 5km of tunnels, adits, and old workings. The Company is now designing an underground drill campaign intended to expand geological knowledge in advance of a decision to potentially restart commercial underground operations at this satellite mine in the future”. 
  • Vizsla Silver Corp., filed a Preliminary Economic Assessment (PEA) technical report on its Panuco project in Sinaloa with an effective date of July 24, 2024.
  • Vizsla Silver Corp., reported results of 22 infill drill holes from its Copala project in Sinaloa (true widths reported). Drilling highlights include holes CS-24-381A with 3,698 g/t Ag and 41.2 g/t Au (6,270 g/t AgEq) over 4.36m, including 6,304 g/t Ag and 69.47 g/t Au (10,634 g/t AgEq) over 3.22m; hole CS-24-375 with 978 g/t Ag and 4.56 g/t Au (12.12 g/t AgEq) over 4.56m, including 1,775 g/t Ag and 11.80 g/t Au (2,447 g/t AgEq) over 0.41m, including 1,500 g/t Ag and 7.74 g/t Ag (1,911 g/t AgEq) over 0.57 m, including 5,894 g/t Ag and 22.97 g/t Au (6,983 g/t AgEq) over 1.42m, including 1,580 g/t Ag and 5.85 g/t Au (1,850 g/t AgEq) over 0.37m; hole CS-24-377 with 895 g/t Ag and 3.81 g/t Au (1,083 g/t AgEq9 over 10m, including 3,915 g/t Ag and 15.69 g/t Au (4,669 g/t AgEq) over 2m; and hole CS-24-380 with 1,861 g/t Ag and 12.20 g/t Au (2,554 g/t AgEq9 over 13.3m, including 4,463 g/t Ag and 28.92 g/t Au (6,037 g/t AgEq) over 4.36m, including 3,190 g/t Ag and 27.80 g/t Au (4,863 g/t AgEq) over 1.14m. “The reported drilling, designed to infill near-surface Indicated Mineral Resources, has confirmed high-grade mineral continuity where initial mining is likely to occur during the first two years of production at Copala central”.
  • Xali Gold Corp., reported that now it has two active projects in the El Oro mining district, state of Mexico: El Oro Underground Project, and El Oro Tailings project.  At El Oro Underground Project, Xali and its JV partner Remedioambiente S.A. de C.V., met to review the field work completed to date to discuss how the two company’s plans for work can benefit each other and the local community. The underground access that Remedioambiente plans to open would be invaluable for Xali Gold’s exploration efforts, particularly for drilling. At El Oro Tailings Project, samples from the drill program for metallurgical test work were shipped to lab. Metallurgical testing is underway and results are expected by the end of Q3, 2024.

ON DEALS AND CORPORATE ISSUES

  • Aztec Minerals Corp., announced that it has strengthened its technical advisory board with the appointment of its strategic advisor (Cervantes project, Sonora).
  • Torex Gold Resources Inc., reported that it will be hosting an analysis and investor day on September 5, 2024 to discuss an internal pre-feasibility study on developing the EPO deposit at the company’s Morelos Complex, along with an update on the wider business, including Torex’s recently released multi-year exploration strategy. (El Limon Guajes project, Guerrero).
  • Goldgroup Mining Inc., announced marketing agreement with Peak Investor Marketing Corp., to receive full-service marketing and consulting services focused on the junior mining sector. “The contract is for a 12-month term, with a fee of $12,000 per month and can be terminated after 6 months with 30-days written notice. As part of the agreement, Peak will receive 1,500,000 stock options with an exercise price of $0.075, valid for a period of 2 years from date of issuance. The options will vest over 12 months (as to one-quarter every 3 months) (Cerro Prieto mine, Sonora)”.
  • Plata Latina Minerals Corporation granted stock options to its Directors, Officers, and Consultants. The options are exercisable at CAD $0.01 per share for a period of five years, expiring on August 23, 2029 (Naranjillo project, Guanajuato).
  • Silver Storm Mining Ltd., announced that it is providing bi-weekly update on the status of its management cease trade order issued on July 30, 2024 by its principal regulator, the British Columbia Securities Commission, under National Policy 12-203 Management Cease Trade Orders (La Parrilla mine, Durango).
  • Vizsla Royalties Corp., advised that it had elected to halt trading of its warrants but soon after  it announced that it had been advised by the TSX Venture Exchange (TSX-V) that the warrants of the company will resume trading on the TSX-V effective Wednesday September 4, 2024 at the opening of trading  (Panuco project, Sinaloa).
  • Regency Silver Corp., announced the appointment of a new member to its Advisory Committee (Dios Padre project, Sonora).
  • Endeavour Silver Corp., is being investigated by The Schall Law Firm on behalf of the investors for securities fraud. The investigation focuses on whether the company issued false and/or misleading statements and/or failed to disclose information pertinent to investors. “Endeavour issued a press release on August 12, 2024, informing investors that “the primary ball mill at the Guanacevi mill has failed and could take up to 12 weeks to replace” and that “as a result, processing of material at the Guanacevi mill has been suspended.” The Company further stated that “this downtime will impact Q3 production and is expected to impact annual production and cost guidance.”
  • Galore Resources Inc. provided a status report regarding its Management Cease Trade Order (MCTO) issued by the British Columbia Securities Commission. The company confirmed no material changes since the last announcement, except for the engagement of Davidson & Company as the new auditor, replacing DeVisser Gray LLP. Galore expects to file its fiscal year-end financial statements, along with the Management Discussion and Analysis, by September 27, 2024. The report emphasizes that there are no further anticipated defaults and no undisclosed material information regarding the company’s affairs (Dos Santos project, Zacatecas).
  • Torex Gold Resources Inc., reported a contractor fatality within the Guajes Tunnel at it’s the Morelos Complex, Guerrero. “Media Luna construction activities in the Guajes Tunnel have been temporarily suspended. An investigation to determine the cause of the accident is expected to commence shortly”.
  • Luca Mining Corp., clarified an early warning report issued by Trafigura Beheer B.V., regarding a debt restructuring agreement. The agreement involved converting a USD $5.8M loan into a non-interest-bearing three-year term convertible debenture, which was conditionally issued to Trafigura´s subsidiary Union Holdings (Malta) Limited. The necessary amendments to security agreements were completed recently, allowing the debenture to be formally executed and released from escrow, maturing on January 11, 2027 (Campo Morado mine, Guerrero).
  • Royalties Inc., announced that it continues advancing in monetizing its Ag-Zn-Pb Bilbao property in Zacatecas, ideally by selling to an existing silver producer for cash and shares in order to generate further potential gains from the rise in the price of silver, and achieving success in lawsuit against Capstone Gold S.A. de C.V., a subsidiary of Capstone Copper Corp. , to properly recognize and pay  the 2% NSR on the five Portree claims, which have been in production since 2020 and are part of the Cozamine mine in Zacatecas.

ON SOCIAL RESPONSIBILITY

  • Orla Mining Ltd., released its 2023 sustainability report to highlight the company’s commitment to environmental, social, and governance (ESG) initiatives. The company “achieved global leading metrics on emissions and water management at its Camino Rojo operations in Zacatecas with 0.19 tonnes of CO2 equivalent per ounce of gold produced, and 0.12 m3/t of processed ore water intensity, with zero water discharge (100% of water reused and recycled); increased female representation among contracted workforce from 3.6% to 14.6%; generated USD $10.7M in community economic contributions at Camino Rojo, including salaries, local procurement, land leases and investments in local infrastructure; Achieved a lost time injury frequency rate of 1.71 across our sites. Lost time injury frequency rate (LTIFR) is a measure used in workplace safety to quantify the number of injuries resulting in lost work time, per one million hours worked; 25% of Orla’s corporate goals were ESG-linked, all of which were achieved; and 100% of Orla executives and managerial-level employees were evaluated against ESG performance”.

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 gold-bearing orogenic quartz vein in an orogenic gold project in Oaxaca, Mexico. Photo taken by Miguel A Heredia.

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

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Vuggy Quartz

By Miguel A Heredia

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

ON MEXICO ISSUE

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

ON EXPLORATION

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

ON MINING

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

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

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

ON FINANCING

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

ON RESOURCES AND DEVELOPMENT

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

ON DEALS AND CORPORATE ISSUES

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

ON SOCIAL RESPONSIBILITY

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

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

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

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

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Quartz-goethite stockwork veining with malachite stains

By Miguel A Heredia

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

ON MEXICO ISSUE

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

ON EXPLORATION

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

ON MINING

  • No relevant news.

ON FINANCING

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

ON RESOURCES AND DEVELOPMENT

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

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

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

ON DEALS AND CORPORATE ISSUES

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

ON SOCIAL RESPONSIBILITY

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

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

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

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

/ Gambusino Prospector / Leave a comment

By Jorge Cirett

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

ON MEXICO ISSUES

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

ON EXPLORATION

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

ON MINING

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

ON FINANCING

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

ON RESOURCES AND DEVELOPMENT

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

ON DEALS AND CORPORATE ISSUES

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

ON SOCIAL RESPONSIBILITY

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

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