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

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Quartz vein showing boiling texture

By Miguel A Heredia

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

ON MEXICO ISSUE

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

ON EXPLORATION

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

ON MINING

  • No relevant news.

ON FINANCING

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

ON RESOURCES AND DEVELOPMENT

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

ON DEALS AND CORPORATE ISSUES

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

ON SOCIAL RESPONSIBILITY

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

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

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

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

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Quartz-barite-specularite vein

By Miguel A Heredia

During the 10th week of the year (March 4th to March 10th, 2024), at least 24 press releases were announced by companies working in Mexico, with eight disclosing deals and corporate issues, five communicating production results, four announcing financing issues, four informing on exploration results, and three reporting resources and developments of their projects.  ON MEXICO ISSUES, no relevant news. ON EXPLORATION, In Sonora, Tocvan reported surface exploration results from areas located over 6km north of the El Pilar Main Zone at its Pilar project, and Aztec reported final results from the 2023 RC drilling from its Cervantes project. In Chihuahua, Radius secured funding to commence drilling at the Plata Verde project. In Durango, Centenario Gold announced results from the first drill program on its Eden project. ON MINING, SilverCrest announced that it will file its audited annual financial statement and management discussion and analysis for the fiscal year ended December 31, 2023 on March 11th, 2024 (Las Chispas mine, Sonora). Argonaut reported Q3 and year-end 2023 production and financial results from their Mexican operations. Fortuna released Q3 and end-year production results from its San Jose mine in Oaxaca. Luca Mining reported production results from its Tahuehueto, Durango and provided an update on its Campo Morado, Guerrero mine operation. MAG Silver reported a preliminary 2024 Juanicipio, Zacatecas guidance. ON FINANCING, Capitan Silver announced that it intends to rise CAD $1.5M by way of a non-brokered private placement (Cruz de Plata project, Durango). Infinitum Copper announced a private placement (amended later on) for gross proceeds of up to CAD $450K (Adelita project, Sonora). Reyna Silver increased the size of its non-brokered private placement and announced the second closing of the life offering and the first closing of the concurrent private placement (Guigui and Batopilas projects, Chihuahua).  ON RESOURCES AND DEVELOPMENT, Tocvan reported that a RC drilling is to commence at its Pilar project in Sonora. Kootenay filed a NI 43-101 Technical Report on its La Cigarra project, Chihuahua.  GR Silver provided an operational update and announced the start of a small bulk sampling and test mining at its Plomosas project in Sinaloa. ON DEALS AND CORPORATE ISSUES, US Antimony announced executive management changes. Golden Minerals announced that one member of its Board of Director has passed away (Velardeña property, Durango).  Sierra Metals announced the appointment of its Vice President, Health, & Safety, effective March 1, 2024 (Bolivar mine, Chihuahua). Pan American announced that the Toronto Stock Exchange (TSX) accepted its intention to purchase up to 5% of Pan American´s issued and outstanding shares (La Colorada, Zacatecas-Durango). Goldgroup reported a contractor fatality at its Cerro Prieto mine in Sonora. Kootenay granted stock options to officers, directors, employees, and consultants (Columba project, Chihuahua). Defiance Silver confirmed ownership of the Tepal project in Michoacan.  ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUE

  • No relevant news.

ON EXPLORATION

  • Tocvan Ventures Corp., reported surface exploration results from areas located over 6km north of Pilar´s Main Zone within its Pilar project in Sonora. Sampling returned very high-grade silver with gold values.. Two samples yielded 1,225 g/t Ag with 3.2 g/t Au and 744 g/t Ag with 0.2 g/t Au from sample material next to historical artisanal workings. One of the samples also show higher polymetallic association returning 0.42% Cu, 3.4% Zn, and over 20% Pb (assay over limit was reached).
  • Aztec Minerals Corp., reported final results from the 2023 RC drilling from its Cervantes project.  The RC drilling program consisted of 1,646m in 13 holes testing the California porphyry gold target. All drill holes intersected oxidized Au mineralization; the California target continues to be open; the California target now has an area of 1,000m by 300m drill demonstrated; and the California target was found to continue on strike to the east at least another 400m. The multi-element ICP results show good, positive relationships between Au, Cu, Bi, Ag, As, W and K (potassic alteration), negative relationships with Mo, Sb and Ca.  The multi-element grades support the potential for an Au-Cu porphyry deposit at depth.
  • Radius Gold Inc., secured funding to commence drilling at the Plata Verde project in Chihuahua, Mexico, through an option agreement with Minera San Julian and Geometales del Norte-Geonorte. The initial investment for mobilizing drilling and field teams is USD $250K, with additional funding to follow as approved by technical committee. The project has shown significant silver mineralization and historical production potential. Minera San Julian aims to spend a minimum of USD $4,762,000 over four years on exploration activities at Plata Verde and has the right to earn a 70% interest in the project.
  • Centenario Gold Corp., announced results from the first drill program on its Eden project in Durango. The company completed 1,506m in 11 core holes “testing the strike and downdip extensions of the mineralized structure along a section of the ‘Buenavista’ corridor”. All holes intersected the ‘Buenavista’ vein-breccia structure at depths ranging between 50 to 110 m. Assay results have been received on 9 of the 11 holes. Assays are pending for holes ED24-09 and ED24-11 and will be released when received.

ON MINING

  • SilverCrest Metals Inc., announced that it will file its audited annual financial statement and management discussion and analysis for the fiscal year ended December 31, 2023 on March 11th, 2024 (Las Chispas mine, Sonora).
  • Argonaut Gold Inc., reported Q3 and year-end 2023 production and financial results from their Mexican operations (all dollar amounts are expressed in USD). In Q3, 2023, the company sold at La Colorada, Sonora, 7,967 Oz Au; reported cost of sales for $13,998,000; a cost of sales per Oz Au sold of $1,757; production costs of $10,353,000; a cash cost of $10,066,000; a cash cost per Oz Au sold of $1,263; and all in sustaining cost (AISC) of $1,316. For the year-end, it sold 25,957 Oz Au; reported cost of sales for $48,556,000; a cost of sales per Oz Au sold of $1,871; production costs of $39,057,000; a cash cost of $38,065,000; a cash cost per Oz Au sold of $1,466; and AISC of $1,532. At San Agustin, Durango, the company sold in Q3, 2023 9,556 Oz Au; reported cost of sales for $17,624,000; a cost of sales per Oz Au sold of $1,844; production costs of $16,000,000; a cash cost of $15,249,000; a cash cost per Oz Au sold of $1,596; and AISC of $1,631. For the year-end, it sold 44,148 Oz Au; reported cost of sales for $81,324,000; a cost of sales per Oz Au sold of $1,842; production costs of $71,263,000; a cash cost of $66,867,000; a cash cost per Oz Au sold of $1,515; and AISC of $1,552. At El Castillo, Durango, the company sold in Q3, 2023 4,353 Oz Au; reported cost of sales for $6,362,000; a cost of sales per Oz Au sold of $1,462; production costs of $6,009,000; a cash cost of $5,972,000; a cash cost per Oz Au sold of $1,372; and AISC of $1,402. For the year-end, it sold 21,325 Oz Au; reported cost of sales for $36,005,000; a cost of sales per Oz Au sold of $1,688; production costs of $32,252,000; a cash cost of $31,837,000; a cash cost per Oz Au sold of $1,493; and AISC of $1,518.
  • Fortuna Silver Mines Inc., released Q3 and end-year production results from its San Jose mine in Oaxaca. In Q3, 2023, the company milled 241,035 tonnes of 145 g/t Ag and 0.91 g/t Au with metallurgical recoveries of 91% and 90% respectively, to produce 1,023,325 Oz Ag and 6,345 Oz Au of which sold 1,040,888 Oz Ag and 6,046 Oz Au at an average realized price of USD $23.35 per Oz Ag and USD $1,983 per Oz Au. Fortuna reported a production cash and AISC of USD $17.57 and USD $21.98 per Oz AgEq respectively. In the full year 2023, the company milled 930,200 tonnes of 171 g/t Ag and 1.06 g/t Au with metallurgical recoveries of 91% and 90% respectively, to produce 4,656,631 Oz Ag and 28,559 Oz Au of which sold 4,659,611 Oz Ag and 28,524 Oz Au at an average realized price of USD $23.36 per Oz Ag and USD $1,942 per Oz Au. Fortuna reported a production cash and AISC of USD $14.40 and USD $19.40 per Oz AgEq respectively.
  • Luca Mining Corp. reported production results from its Tahuehueto, Durango and provided an update on its Campo Morado, Guerrero mine operation. At Tahuehueto, Durango, the mine achieved a new daily production record of 655 tonnes last week. The mine plan calls for the ramp-up to an approximate 1,000 tonne per day operation during 2H 2024 which is rapidly being achieved. At Campo Morado, Guerrero, “the optimization program has to date developed fundamental improvements in productivity, operational efficiency and cashflow. Key features of the program include effective mine-to-mill planning, new procedures for ore blending, increased metallurgical test work, optimized grinding and reagent dosing for improved recoveries, and phased equipment upgrades for mine and mill”.
  • MAG Silver Corp., reported a preliminary 2024 Juanicipio, Zacatecas guidance. MAG Silver reported preliminary guidance for the production potential of the high-grade Juanicipio Mine jointly owned by Fresnillo and MAG. The silver head grade is expected to range between 380 g/t and 420 g/t for 2024, with the plant anticipated to operate at nameplate capacity per operating day with an effective utilization of 91%. MAG remains on schedule to publish its updated technical report by the end of Q1 2024, providing more definitive guidance and solidifying the outlook for the Juanicipio Mine.

ON FINANCING

  • Capitan Silver Corp., announced that it intends to rise CAD $1.5M by way of a non-brokered private placement of 10M common shares at a price of CAD $0.15 per share. Gross proceeds will be used to advance Cruz de Plata project in Durango, to evaluate potential acquisitions, as well as to fund working capital and general corporate expenses.
  • Infinitum Copper Corp., announced a private placement (amended later on) for gross proceeds of up to CAD $450K through the issue of up to 22.5M units of the company at a price of CAD $0.02 per unit. Each unit will be comprised of one common share of the company and one common share purchase warrant. Net proceeds will be used for the establishment of mining operations at La Adelita project in Sonora, and for general corporate purposes. 
  • Reyna Silver Corp., increased the size of its non-brokered private placement from $2.5M to $2.9M, and announced the second closing of the listed issuer financing exemption (LIFE) offering of 8,240,666 units for gross proceeds of approximately $988,880, and the first closing of the concurrent private placement of 12,401,610 units for gross proceeds of approximately 1,488,193. The company plans to use part of the net proceeds for the exploration of Guigui and Batopilas projects, Chihuahua. 

ON RESOURCES AND DEVELOPMENT

  • Tocvan Ventures Corp., reported that a RC drilling is to commence at its Pilar project in Sonora for resource definition and expansion, as well as evaluation of new discoveries and targets. “The initial focus will be on infill and step-out targeting within and adjacent to the Pilar Main Zone including where previous drill campaigns successfully discovered the southern extension of the Main Zone, returning 108.6 meters of 0.8 g/t Au, including 9.4 meters of 7.6 g/t Au and 5 g/t Ag”.
  • Kootenay Silver Inc., filed a NI 43-101 Technical Report titled “Mineral Resource Estimate Update for the La Cigarra Ag-Pb-Zn Project, Chihuahua State, Mexico” with an effective date of November 29, 2023.
  • GR Silver Mining Ltd., provided an operational update and announced the start of a small bulk sampling and test mining at its Plomosas project in Sinaloa. GR Silver Mining has entered commercial agreements with private local operators to explore opportunities related to the Plomosas Project. The company has started the Bulk Sampling Test Mining (BSTM) program for future use in engineering and metallurgical reports at the San Juan and La Colorada sites, which has the potential to unveil valuable geological information related to high-grade modeling & targeting, grade reconciliation, and mineral deposit modeling to define new drill targets in the vicinities of the existing historical mines. The BSTM program will allow low-cost preparation of sites for future drilling, aiming to continue resource expansion in the project.

ON DEALS AND CORPORATE ISSUES

  • US Antimony Corporation announced executive management changes. Its previous CEO was appointed as President of the Company’s Antimony Division after relinquished his title as a CEO of US Antimony Corporation (Los Juarez project, Queretaro).
  • Golden Minerals Company announced that one member of its Board of Director has passed away (Velardeña property, Durango).
  • Sierra Metals Inc., announced the appointment of its Vice President, Health, & Safety, effective March 1, 2024 (Bolivar mine, Chihuahua).
  • Pan American Silver Corp., has announced a normal course issuer bid to purchase up to 5% of its issued and outstanding shares starting on March 6, 2024. The purchases will be made on the open market through various trading platforms. The company believes that its shares may not fully reflect its underlying value, making them an attractive investment. The bid will be funded from the company’s working capital, and purchases will be made at market prices. Pan American has established an automatic securities purchase plan to facilitate share repurchases. (La Colorada, Zacatecas-Durango).
  • Goldgroup Mining Inc., reported a contractor fatality at its Cerro Prieto mine in Sonora. Relevant regulatory authorities were notified and attended the site to investigate.
  • Kootenay Silver Inc., granted stock options to officers, directors, employees, and consultants to purchase up to an aggregate of 1,310,000 million shares and issued restricted share and deferred units totalling 905,000 common shares.  The stock options have been granted at a price of $0.90 per common share for a period of five years.
  • Defiance Silver Corp., confirmed ownership of the Tepal project in Michoacan. The Mexican Court restored the Company’s rightful ownership to the mining concessions forming part of the Tepal project. As a result, the judgement is now fully enforceable, and Geologix Explorations Mexico, S.V de C.A, a subsidiary of the Company, is now confirmed as the legitimate and rightful owner of the concessions.

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 quartz-barite-specularite vein on a project of the Sonoran Desert. Photo taken by Miguel A Heredia.

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

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Rhyolite dike showing flow banded texture

By Miguel A Heredia

During the 8th week of the year (February 19th to February 25th, 2024), at least 29 press releases were announced by companies working in Mexico, with ten communicating production results, eight reporting resources and developments of their projects, five disclosing deals and corporate issues, four announcing financing issues, one commenting on Mexican issues, and one  informing on exploration results.  ON MEXICO ISSUES, Orla Mining, Silver Storm, and Prismo Metals reported the best drilling intercepts in Mexico on the fourth week of February, 2024. ON EXPLORATION, In Sonora, Prismo provided an exploration update on its Pavitos project. ON MINING, Aura reported Q4 and year-end 2023 production and financial results from its Aranzazu mine in Zacatecas, and provided guidance for 2024. Gatos Silver announced Q4 and year-end 2023 production and financial results from its Cerro Los Gatos mine, Chihuahua, and provided 2024 guidance. Capstone released Q4, 2023 production results from its Cozamin mine, Zacatecas. Alamos Gold announced Q4 and year-end 2023 production and financial results from its Mulatos mine, Sonora. Coeur reported Q4 and year-end 2023 production and financial results from its Palmarejo mine in Chihuahua.  Equinox provided 2024 production guidance for its Los Filos mine, Guerrero. Minera Alamos announced 2024 operational outlook for its Santana mine in Sonora. Torex reported Q4 and year-end 2023 production results from its El Limon-Guajes Mine Complex, Guerrero. First Majestic announced Q3 and year-end production and financial results from their Mexican operations. SilverCrest provided 2024 production guidance for its Las Chispas mine, Sonora. ON FINANCING, Kootenay closed the final tranche of its previously announced non-brokered private placement for gross proceeds of $237.5K to complete a total aggregate gross proceeds of $3.7M (Columba project, Chihuahua). Oroco announced the closing of a non-brokered private placement for net proceeds of $1M (Santo Tomas project, Sinaloa). Sonoran Dessert declared that in response to the continuing weakness in the junior resource sector, the company will be reducing the price and increasing the amount of its private placement financing. Vizsla announced $30M bought deal financing (Panuco project, Sinaloa). ON RESOURCES AND DEVELOPMENT, Vizsla filed an independent technical report containing an updated Mineral Resource Estimate on its Panuco project in Sinaloa. Luca reported significant improvements at its Campo Morado mine, Guerrero. Alamos Gold reported Mineral Resources and Reserves at its Mulatos mine operation in Sonora, as of December 31, 2023. Silver Storm released results from three holes drilled at its la Parrilla mine in Durango. Silver Tiger provided an update on the Company’s ongoing Pre-feasibility Study (PFS) drilling program on the Stockwork Gold Deposit on its El Tigre Project in Sonora. Orla discovered new style of mineralization at its Camino Rojo project in Zacatecas and recent drilling extended mineralization beyond the current mineral resource envelope, presenting a considerable opportunity for resource expansion. Prime Mining provided a summary of the 2023 exploration activities and  released the final 2023 drilling results for its Los Reyes Gold-Silver Project in Sinaloa. Discovery Silver announced results from the Feasibility Study (FS) on its Cordero project, Chihuahua.  ON DEALS AND CORPORATE ISSUES, Trident Royalties Plc, in a joint venture with Sonoroy Holdings Limited, is acquiring a 3.0% Gross Revenue Royalty over the Sonora Lithium Project in Mexico. Bear Creek announced the resignation of its CEO effective March 8, 2024, and later on appointed its successor (Mercedes mine, Sonora). DynaResource announced the resignation of two Directors and appointed two new members to its Board of Directors. The resignations and appointments are effective February 16, 2024 (San Jose de Gracia project, Sinaloa).  Tarachi notified that its CEO was elected to the Board of Directors (Magistral Mill & Tailings project, Durango). ON SOCIAL RESPONSIBILITY, no relevant news.

ON MEXICO ISSUE

  • Orla Mining Ltd., Silver Storm Mining Ltd., and Prismo Metals Inc., reported the best drilling intercepts in Mexico on the fourth week of February, 2024. Details are shown in the table below:

ON EXPLORATION

  • Prismo Metals Inc., provided an exploration update on its Pavitos project in Sonora. Prismo Metals has reported positive results from its ongoing exploration program at Los Pavitos, a 5,300 ha Project in southern Sonora State, Mexico. The 2023 exploration program included geologic mapping, sampling, and drilling that resulted in identifying 5 structures and positive results from 4 widely-spaced structures. The best results from the drilling were 2.6 g/t Gold over 0.5m and 1.18 g/t Gold over 0.5m at the Las Auras and Oromuri structures. In addition, a new zone with several structures was identified and sampled in the previously unexplored northeastern portion of the project area. Surface sampling along the northeastern projection of the gold and silver-rich Santa Cruz structure yielded high silver assay of 1,130 g/t Ag, with 1.33 g/t Au over 0.15 meters. Based on the exploration results, Los Pavitos gold footprint has grown 2.5 km to the northeast and silver footprint also grew 1 km.

ON MINING

  • Aura Minerals Inc., reported Q4 and year-end 2023 production and financial results from its Aranzazu mine in Zacatecas, and provided guidance for 2024. In Q4, 2023, the company produced at its Aranzazu mine 26,532 Gold Equivalent Ounces (GEO), for a total of 106,119 GEO. It also provided guidance for 2024 and estimate to produce between 94K-108K GEO at cash and all in sustaining costs of USD $826-1008 and USD $1,089-1,331 per Oz Au produced respectively.
  • Gatos Silver Inc., announced Q4 and year-end 2023 production and financial results from its Cerro Los Gatos mine, Chihuahua and provided 2024 guidance (the reported currency is USDS $). The company has a 70% interest in the Los Gatos JV. Los Gatos JV (100% basis) milled in Q4, 2023 a total of 277,318 tonnes of 318 g/t Ag, 3.9% Zn, 1.9% Pb, and 0.3 g/t Au to produce 2.6M Oz Ag, 14.6M Lb Zn, 10.2M Lb Pb, and 1.4K Oz Au (3.9M Oz AgEq) at cash and all in sustaining costs of $11.26 and $14.73 per Oz AgEq respectively ($6.02 and  $11.12 per Oz Ag). In the 2023 full year, the company milled a total of 1,071,400 tonnes of 299 g/t Ag, 3.9% Zn, 1.8% Pb, and 0.29 g/t Au to produce 9.2M Oz Ag, 57.3M Lb Zn, 38.9M Lb Pb, and 5.3K Oz Au (14.3M Oz AgEq) at cash and all in sustaining costs of $12.11 and $15.51 per Oz AgEq respectively ($6.31 and $11.33 per Oz Ag). Gatos Silver also reported for the period Q4, 2023 revenue of $73.5M; cost of sales of $28M; net income of $24.9M; EBIDTA of $38.6M; cash from operating activities of $38.2M; sustaining capital of $11.7M; and free cash flow of $22.3M. For the 2023 year full it reported revenue of $268.7M; cost of sales of $111.3M; net income of $53.4M; EBIDTA of $135.8M; cash from operating activities of $142M; sustaining capital of $41.6M; and free cash flow of $84.9M. The company expects to produce in 2024 between 8.4-9.2M Oz Ag, 61-69M Lb Zn, 40-46M Lb Pb, and 4.5-5.5K Oz Au (13-5-15M Oz AgEq) at a all in sustaining cost of $9.50-$11.50 per Oz Ag (or $14-$16 per Oz AgEq).
  • Capstone Copper Corporation released Q4, 2023 production results from its Cozamin mine, Zacatecas. The company processed 6,564 tonnes to produce 14.8M Lb Cu at a cash cost of USD $1.76 per Lb Cu produced. Capstone provided an outlook for 2024 and expects to produced between 49.3-53.8M Lb Cu at cash cost of USD $1.85-USD $2.05 per Lb Cu produced.
  • Alamos Gold Inc., announced Q4 and year-end 2023 production and financial results from its Mulatos mine, Sonora. During the period Q4, 2023, the company produced 48.1K Oz Au and sold 50,489 Oz Au. Alamos reported cost of sales of USD $68.3M; cost of sales per Oz Au sold (including amortization) of USD $1,353; total cash cost per Oz Au sold of USD $957; mine site all in sustaining cost (AISC) per Oz Au sold of USD $1,030; and a capital expenditure of USD $8.4M. For the year-end 2023, Alamos produced 212,800 Oz Au and sold 215,833 Oz Au. The company reported cost of sales of USD $265.9M; cost of sales per Oz Au sold (including amortization) of USD $1,232; total cash cost per Oz Au sold of USD $883; mine site AISC Oz Au sold of USD $967; and a capital expenditure of USD $30.4M. It also provided its 2024 guidance and expects to produce between 160-170K Oz Au at total and AISC of USD $925-975, and USD $1,000-1,050 per Oz Au sold respectively.
  • Coeur Mining Inc., reported Q4 and year-end 2023 production and financial results from its Palmarejo mine in Chihuahua. Highlights are provided below:
  • Equinox Gold Corp., provided 2024 production and cost guidance for its Los Filos mine, Guerrero. The company expects to produce 155K-175K Oz Au at cash costs of USD $1,785- $1,885 per Oz Au and AISC of USD $2,090- $2,190 per Oz Au.
  • Minera Alamos Inc., announced 2024 operational outlook for its Santana mine in Sonora. The company is looking forward to significant advancements at the Santana gold mine in 2024 after facing challenges in 2023. It plans to expand mining and stacking operations using the current permitted pad space while awaiting permit amendments for future expansion. The company is finalizing plans for the year, including discussions with their mining contractor and permit approvals. Advanced development activities have already begun at the Nicho Main zone to support the new operational plan. Upgrades to equipment and personnel are expected to increase production levels from 2023. “Approximately 20K Oz Au at an average grade of 0.63 g/t and an approximate strip ratio of 1.6:1has now been defined for mining and loading over a 12-month schedule utilizing the current leach pad installed capacity. Included in the current plan are an additional 4,500 Oz of higher grade (~1 g/t) mineralized material. Due to its elevated gold content, this mineralization will be stockpiled initially for future processing pending additional studies to determine an optimal approach for crushing and processing to maximize recoveries”.
  • Torex Gold Resources inc., reported Q4 and year-end 2023 production results from its El Limon-Guajes Mine Complex, Guerrero (all currency is reported in USD$). In Q4, 2023, the company produced 137,993 Oz Au and sold 138,794 Oz Au at an average realized gold price of $1,995, contributing to revenue of $282.4M. Total cash costs of $885 per Oz Au sold and all-in sustaining costs of $1,073 per Oz Au sold. Cost of sales was $191.6M or $1,380 per Oz Au sold. Torex reported net income of $50.4M, generated an EBITDA and adjusted EBITDA of $115.4M and $142.6M respectively. Net cash generated from operating activities totalled $120M and $133.5M before changes in non-cash operating working capital, including income taxes paid of $12M and negative free cash flow of $24.3M. In the full-year 2023, the company produced 453,778 Oz Au and sold 444,750 Oz Au at an average realized gold price of $1,952, contributing to revenue of $882.6M. Total cash costs of $866 per Oz Au sold and all-in sustaining costs of $1,200 per Oz Au sold. Cost of sales was $600.1M or $1,349 per Oz Au sold. Torex reported net income of $204.4M, generated an EBITDA and adjusted EBITDA of $422.6M and $442.2M respectively. Net cash generated from operating activities totalled $300.8M and $340.8M before changes in non-cash operating working capital, including income taxes paid of $116.2M and negative free cash flow of $185.4M.
  • First Majestic Silver Corp., announced Q3 and year-end production and financial results from their Mexican operations. Figures by separate mine are provided below:
  • SilverCrest Metals Inc., provided 2024 production guidance for its Las Chispas mine, Sonora. The company expects to produce between 9.8-10.2M Oz AgEq at cash and AISC of USD $9.5-$10 and USD $15-$15.90 per Oz AgEq sold respectively. Sustaining Capital of USD $40M-$44M will be largely related to underground development and underground infrastructure. An exploration budget within a range of USD $12M-$14M has been approved for 2024 with a focus on converting inferred resources to indicated for reserve consideration in proximity to existing or planned infrastructure, return to early stage exploration at Las Chispas, and regionally define new targets that could benefit mine life extensions.

ON FINANCING

  • Kootenay Silver Inc., closed the final tranche of its previously announced non-brokered private placement for gross proceeds of $237.5K to complete a total aggregate gross proceeds of $3.7M from the offering. Net proceeds will be used for exploration activities, property commitments on the Company’s projects, working capital and general corporate purposes (Columba project, Chihuahua).
  • Oroco Resource Corp., announced the closing of a non-brokered private placement for net proceeds of $1M through the sale of 2.57M units at a price of $0.4 per unit. Net proceeds will be used to continue improving various underlying aspects of the Company’s Preliminary Economic Assessment, including those relating to the Santo Tomas mine plan, together with property maintenance and corporate overhead.
  • Sonoran Dessert Copper Corporation declared that in response to the continuing weakness in the junior resource sector, the Company will be reducing the price and increasing the amount of its private placement financing. Previously, the company was offering up to 2.5M units priced at $0.20, for aggregate gross proceeds of up to $500K. The updated financing will now offer up to 10M units priced at $0.10, for aggregate gross proceeds of up to $1M. Proceeds from the financing will be used for general working capital, the continuing development of the company’s Cuatro Hermanos Copper Project in Sonora, and to evaluate and secure further opportunities in the copper sector.
  • Vizsla Silver Corp., announced $30M bought deal financing by selling 20M common shares at a price of $1.5 per common share. Net proceeds will be used to advance the exploration, drilling, and development of its Panuco project in Sinaloa, as well as for working capital and general corporate purposes.

ON RESOURCES AND DEVELOPMENT

  • Vizsla Silver Corp., filed an independent technical report containing an updated Mineral Resource Estimate on its Panuco project in Sinaloa.
  • Luca Mining Corp., reported significant improvements at its Campo Morado mine, Guerrero. Highlights include significantly improved overall performance in Q4, 2023 compared to previous quarters, yielding increased revenues; plant performance exceeded expectations with operational consistency; and higher metallurgical recoveries and concentrate grades, especially for copper in the bulk concentrate increasing from less than 48% recovery to over 70% recovery. Currently, Campo Morado produces a zinc concentrate, and a bulk copper-lead concentrate.
  • Alamos Gold Inc., reported Mineral Resources and Reserves as of December 31, 2023 for its Mulatos mine operation. Proven reserves are 1,032,000 of 3.98 g/t Au for a total of 132K Oz Au contained and probable reserves are 15,661,000 tonnes of 2.02 g/t Au for a total of 1.32M Oz Au contained. Proven + Probable reserves are 16,693,000 tonnes of 2.71 g/t Au for a total of $1.45M Oz Au contained. Mineral Resources are exclusive of Mineral Reserves, and the company reported measured resources for 1,333,000 tonnes of 1.76 g/t Au for a total of 76K Oz Au contained and indicated resources for 10,284,000 tonnes of 1.48 g/t Au for a total of 488K Oz Au contained. Measured + Indicated resources are 11,617,000 tonnes of 1.51 g/t Au for a total of 564K Oz Au contained. Inferred resources are 1,651,000 tonnes of 1.07 g/t Au for a total of 57K Oz Au contained.
  • Silver Storm Mining Ltd., released results from three holes drilled at the Quebradillas mine within its la Parrilla property in Durango. Drilling highlights include holes Q-23-022A with 64 g/t Ag, 0.16 g/t Au, 0.9% Pb, 16.7% Zn, and 0.21% Cu (535 g/t AgEq) over  0.55m, plus 498 g/t Ag, 0.08 g/t Au, 6.5% Pb, 8.5% Zn, and 0.06% Cu (911 g/t AgEq) over 13.65m, including 1,350 g/t Ag, 0.23 g/t Au, 2.1% Pb, 8.4% Zn, and 0.06% Cu (2,361 g/t AgEq) over 2.60m, and 674 g/t Ag, 0.06 g/t Au, 5.4% Pb, 16.2% Zn, and 0.06% Cu (1,266 g/t AgEq) over 2.15m; and hole Q23-023 with 124 g/t Ag, 0.16 g/t Au, 0.6% Pb, 7.2% Zn, and 0.07% Cu (347 g/t AgEq) over 9.65m, including 136 g/t Ag, 0.18 g/t Au, 0.4% Pb, 8.7% Zn, and 0.08% Cu (397 g/t AgEq) over 5.3m. “Combined, these two holes have demonstrated the mineralization extends 74 metres below the last mined stope (1767 EL), with higher grades and widths than what was previously mined in this area”. More drilling will be allocated in this location in 2024.
  • Silver Tiger Metals Inc., provided an update on the Company’s ongoing Pre-feasibility Study (PFS) drilling program on the Stockwork Gold Deposit on its El Tigre Project in Sonora. The PFS aims to de-risk the Stockwork Deposit through the 25,000m drilling program focused on increasing confidence of the Mineral Resource with in-fill drilling expansion and classification, metallurgical and geotechnical as it progresses from an exploration to a development project. The company expects the publication of the PFS in H2-2024, and it continues to work on a substantial, permitted underground Mineral Resource Estimate and advance towards a Preliminary Economic Assessment by H2-2024.
  • Orla Mining Ltd., discovered a new polymetallic sulphide replacement-style mineralization at its Camino Rojo project in Zacatecas and recent drilling extended mineralization beyond the current mineral resource envelope, presenting a considerable opportunity for resource expansion. The drill program involved over 2,600 meters of drilling across four holes, with significant mineralized intercepts up to 450 meters down-plunge of the existing open pit mineral resource boundaries. Drilling highlights are provided in the table below:

The company also reported positive initial metallurgical results and plans to complete a 30,000-meter drill program in 2024 to further explore the extensive potential of the growing Camino Rojo Deposit.

  • Prime Mining Corporation provided a summary of the 2023 exploration activities and   released the final 2023 drilling results for its Los Reyes Gold-Silver Project in Sinaloa.   The company completed 58,896m of drilling over 184 holes following success-based exploration program; 162 drill holes intercepted mineralization above approximately 0.2 g/t Au cutoff. The drilling outlined indicated resources of 1M Oz Au at 1.16 g/t and 35M Oz Ag at 40 g/t Ag (1.47M Oz AuEq at 1.16 g/t), and inferred resources of 0.5M Oz Au at 0.85 g/t and 18.4M Oz Ag at 31 g/t (0.77M Oz AuEq at 1.26 g/t). The company is focused on resource expansion through new discoveries and technical de-risking activities. Prime advanced the metallurgical, geochemical, geotechnical and project understanding through testwork and field studies.
  • Discovery Silver Corp., announced results from the Feasibility Study (FS) on its Cordero project, Chihuahua. Highlights include 19-year mine life with average annual production of 37M Oz AgEq in Year 1 to Year 12; average AISC of less than USD $12.50 over the first eight years of the mine life; initial development capex of USD $606M resulting in an attractive after-tax NPV-to-capex ratio of 2.0; Base Case after-tax NPV5% (NPV) of USD $1.2 B and IRR of 22% with NPV expanding to USD $2.2 B in Year 4; Reserves of 302M Oz Ag, 840K Oz Au, 3 B Lb Pb, and 5.2 B Lb Zn; 240M tonnes of Measured & Indicated Resource sit outside the FS pit highlighting the potential to materially extend the mine life at modestly higher silver prices; an initial investment of over USD $600M, 2,500 jobs created during construction, USD $4 B of goods and services purchased and estimated tax contributions of over USD $1.4 B within Mexico; and third-party reviews of proposed environmental practices to ensure adherence to both Mexican regulatory standards and Equator Principles 4.

ON DEALS AND CORPORATE ISSUES

  • Trident Royalties Plc, in a joint venture with Sonoroy Holdings Limited, is acquiring a 3.0% Gross Revenue Royalty over the Sonora Lithium Project in Mexico. The completion date for the transaction has been extended to December 31, 2026, allowing time for resolution of ongoing litigation and administrative reviews. Trident has the option to terminate the joint venture based on the outcome of the litigation. The acquisition aims to provide exposure to a long-life lithium project with expansion potential, operated by Ganfeng Lithium Co., Ltd. The company’s strategy focuses on building a diversified mining royalty and streaming portfolio while targeting small-to-mid size transactions in resource-friendly jurisdictions worldwide.
  • Bear Creek Mining Corporation announced the resignation of its CEO effective March 8, 2024, and later on the Board of Directors appointed its successor effective on or about March 18, 2024 (Mercedes mine, Sonora).
  • DynaResource Inc., announced the resignation of two Directors and appointed two new members to its Board of Directors (San Jose de Gracia project, Sinaloa).
  • Tarachi Gold Corp., notified that its CEO was elected to the Board of Directors (Magistral Mill & Tailings project, Durango).

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 rhyolite dike showing flow banded texture on a project of the Sonoran Desert. Photo taken by Miguel A Heredia.

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

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Silica sinter

By Miguel A Heredia

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

ON MEXICO ISSUE

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

ON EXPLORATION

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

ON MINING

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

ON FINANCING

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

ON RESOURCES AND DEVELOPMENT

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

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

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

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

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

ON DEALS AND CORPORATE ISSUES

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

ON SOCIAL RESPONSIBILITY

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

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

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

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

/ Gambusino Prospector / Leave a comment

By Jorge Cirett                                             

During the 51st week of the year (December 18th to December 24th, 2023), companies working in Mexico posted 28 news releases. Three companies reported exploration advances on their properties, two companies released quarterly reports and one other the successful breakthrough of a major tunnel. In a busy week for financing matters, six companies entered, closed, increased or amended their private placements, one company updated the disclosure on its incentive warrant program, another announced its intention to repurchase up to 10% of its outstanding shares and another one settled a debt with shares.  Two companies released drilling results from their advanced properties and one more the completion of a drilling campaign. Two companies announced a merger, one company announced the rent to purchase agreement on a processing plant, one other provided a summary of yearly activities and plans for 2024. A company sold a subsidiary to a local enterprise while other sold a subsidiary to a foreign one. One company announced a board appointment and one more the results of its AGM. ON MEXICO ISSUES, fossil fuels produce 62% of the energy used by the mining industry in Mexico, and 21% of the water is from underground sources. ON EXPLORATION, in Sonora, Colibri Resource released drilling results from Evelyn; Tocvan Ventures plans a 10,000 m drilling program at Pilar; Riverside Resources reported on field work and rock sampling at Cecilia. ON MINING, Starcore International filed its second quarter 2023 report, GoGold Resources released quarterly-yearly report. Torex Gold completed the tunnel connecting the Limon-Guajes operations with the Media Luna project under the Balsas River. ON FINANCING, Endeavour Silver entered into an agreement to sell up US$60 M in shares in a 25-month period. Heliostar Metals updated the disclosure on the closing of its warrant exercise incentive program. Regency Silver announced a non-brokered private placement (CAD$800 K). Silver Viper is to amend its non-brokered private placement. Alamos Gold is to repurchase up to 10% of its stock. Luca Mining closed a CAD$2 M non-brokered private placement. GR Silver Mining settled a $100 K debt with shares. Canuc Resources closed a CAD$2 M non-brokered private placement. Atacama Copper is to increase its non brokered private placement to $12 M.  ON RESOURCES AND DEVELOPMENT, Sierra Madre Gold and Silver filed a technical report on La Guitarra project, in Estado de Mexico. Pan American Silver presented the results of the PEA on La Colorada Skarn project, in Zacatecas. Aztec Minerals completed an RC drilling program at Cervantes, in Sonora. ON DEALS AND CORPORATE ISSUES, Atacama Copper entered into a business combination agreement with TCP1. Santacruz Silver Mining sold a subsidiary to a Mexican enterprise. Xali Gold Corp. entered into a rent to purchase agreement to sell the San Dieguito de Arriba mill in Nayarit to a Mexican company. Bear Creek Mining and Mag Silver appointed officers. Vizsla Silver provided a summary of its 2023 activities and 2024 plans. Sailfish Royalty entered into a share purchase agreement with CMC Metals for the sale of Sailfish’s Mexican subsidiary controlling the Gavilanes project in Durango. Santacruz Silver Mining held its AGM.  ON SOCIAL RESPONSIBILITY, Capstone Copper published its 2022 sustainability report.

ON MEXICO ISSUES

  • Camimex (Cámara Minera de México) informed that 62% of the energy used by the mining industry in Mexico is produced by fossil fuels, and 21% of the water is from underground sources.

ON EXPLORATION

  • Colibri Resource Corp. announced that the recently completed seventeen-hole 2,200 m reverse circulation drilling program at the Evelyn property in the EP project in Sonora has discovered a new zone of mineralization. The six holes on the new West Sahuaro zone intercepted mineralization, with hole length intercepts of 23 m @ 0.35 gpt Au; 66 m @ 0.273 gpt Au; 6 m @ 0.753 gpt Au; 24m @ 0.148 gpt Au; 26 m @ 0.323 gpt Au (including 5 m @ 0.779 gpt Au); 27 m @ 0.252 gpt Au; 37 m @ 0.195 gpt Au; 4 m @ 1.175 gpt Au; 50 m @ 0.180 gpt Au. West Sahuaro was prioritized based on a gold soil anomaly 500 m in length, a coincident mapped structure and IP geophysical interpretation. Relevant intervals from drilling on the Main Zone comprise 10 m @ 0.242 gpt Au; 21 m @ 0.152 gpt Au; 1 m @ 0.351 gpt Au; 1 m @ 0.967 gpt Au.
  • Tocvan Ventures Corp. informed of plans for a 10,000 m drilling program at its Pilar project in Sonora. The program is focused in resource definition, targeting a maiden mineral resource estimate for late 2024. Depending on market conditions, the program could be extended to 20,000 m to include evaluation of targets areas across Pilar and the earlier stage Picacho project, also in Sonora.
  • Riverside Resources Inc. reported field work and rock sampling from the Cecilia project in Sonora, constructing a model of a composite dome system with superimposed veins. Results from 34 rock samples returned up to 7.3 gpt Au, 144 gpt Ag in the Magallanes target area. Agua Prieta, San Jose, North Breccia, Central and East trends are the main structural corridors, interpreted as the surface expression of a rooted rhyolite dome system, with higher grades at the base. All the information gathered is to be used in target delineation for the planned 2024 drill program.

ON MINING

  • Starcore International Mines Ltd. filed the results for the second quarter ended October 31, 2023. During the period, the San Martin mine in Queretaro milled 58 K tonnes averaging 1.42 gpt Au, 14.8 gpt Ag, recovering 85.2% Au, 48.8% Ag, to produce 2.3 K Oz Au, 13.5 K Oz Ag (2.4 K Oz AuEq), with a mine operating cash cost of $1,690 per Oz AuEq. The operating loss in the quarter was $1.03 M whilst cash and short-term investments were $4.7 M at October 31, 2023.
  • GoGold Resources Inc. announced financial results for the year ending September 30, 2023, with the Parral operations in Chihuahua generating $30 M from the sale of $1.4 M Oz AgEq. During the period 706.9 K Oz Ag, 7,032 Oz Au, 615 tonnes Cu (1.52 M Oz AgEq) were produced. Cash at the end of the period of US$95.3 M.
  • Torex Gold Resources Inc. announced the successful breakthrough of the Guajes tunnel which connects the existing operations on the north side of the Balsas River with the resource base of the Media Luna Cluster on the south side, at its Morelos Complex in Guerrero. Advance rates averaged 7.1 m per day since the start of 2023, and 8 m per day last November, which is impressive, given the 6.5 m high by 6.0 m wide dimensions of the tunnel.

ON FINANCING

  • Endeavour Silver Corp. entered into a sales agreement with a syndicate of agents lead by BMO Capital Markets Corp. pursuant to which the company may, at its discretion and from time to time during the 25-month term of the agreement, sell common shares of the company that add up to US$60 M in aggregate gross proceeds (Terronera, Jalisco).
  • Heliostar Metals Ltd. updated its disclosure regarding the closing of its warrant exercise incentive program. “Capitalized terms used but not defined in this news release have the meanings given to them in the Company’s news release dated December 11, 2023”. An additional 18,000 outstanding warrant were exercised pursuant to the incentive program. A total of 17.6 M common shares were issued upon the exercise of 17.6 M outstanding warrants, providing aggregate gross proceeds of $5.3 M. A total of 5.87 M incentive warrants were issued, and 28.76 M outstanding warrants remain (Ana Paula, Guerrero).
  • Regency Silver Corp. announced a non-brokered private placement to raise up to CAD$800 K (Dios Padre, Sonora).
  • Silver Viper Minerals Corp. intends to amend its non-brokered private placement financing to raise up to $2 M in gross proceeds. “Concurrently with the announcement of the Amended Offering, the Company is terminating its previously announced non-brokered private placement pursuant to the Listed Issuer Financing Exemption (the “LIFE”) of National Instrument 45-106 – Prospectus Exemptions (the “LIFE Offering”). In connection with the termination of the LIFE Offering, the Company is withdrawing the offering document that it filed on December 8, 2023, with respect to the LIFE Offering. Purchasers under the Amended Offering should not rely on such offering document.” (La Virginia, Sonora).
  • Alamos Gold Inc. filed and and received acceptance from the Toronto Stock Exchange on a notice of intention to repurchase for cancellation up to 34.58 M class A common shares (10% of the public float) thorough a Normal Course Issuer Bid from December 24, 2023 to December 23, 2024 (Mulatos, Sonora).
  • Luca Mining Corp. closed the CAD$2 M non-brokered private placement previously announced, raising CAD$2 M in gross proceeds, and reserving a 25% over subscription option on the private placement (Campo Morado, Guerrero).
  • GR Silver Mining Ltd. issued 1.34 M shares to settle and aggregate debt of $100.8 K outstanding as October 31, 2023. Directors and officers of the company participated in the debt settlement transactions, receiving an aggregate of 788.9 K shares to settle a $59.2 K debt (Plomosas, Sinaloa).
  • Canuc Resources Corp. closed a non-brokered private placement financing, raising gross proceeds of CAD$2 M (San Javier, Sonora).
  • Atacama Copper Corp. announced the intention to increase the size of its previously announced brokered private placement for aggregate gross proceeds of up to $12 M. The first tranche has been closed with aggregate gross proceeds of $7 M (Yecora, Sonora).

ON RESOURCES AND DEVELOPMENT

  • Sierra Madre Gold and Silver Ltd. filed a technical report with the previously disclosed mineral resource estimate for the La Guitarra project in Estado de Mexico. The estimate includes 3.84 M tonnes @ 146 gpt Ag, 0.96 gpt Au (220 AgEq) in indicated resources containing 18 M Oz Ag, 118 K Oz Au, and 4.1 M tonnes @ 113 gpt Ag, 0.52 gpt Au (153 gpt AgEq) in inferred resources, containing 20.1 M Oz Ag, 68 K Oz Au.
  • Pan American Silver Corp. released the results of a preliminary economic assessment (PEA) on its La Colorada Skarn project in Zacatecas. The PEA envisions a 50 K tonnes per day (tpd) sub-level cave mining method, accessed by decline ramps and two ventilation shafts. Estimated production for the first ten years is 17.2 M Oz Ag, 427 K tonnes Zn, 218 K tonnes Pb, on recovery rates of 84.8% Ag, 93.7% Zn, 84.3% Pb. The estimated initial capital cost is $2,829 M over a six-year construction period, a payback period of 4.3 years, total life of mine (LOM) of $951 M and a cumulative after-tax cash flow of $5,689 M. The estimated mineral resource is 173.6 M tonnes @ 2.79% Zn, 1.32% Pb, 33 gpt Ag in the indicated category and 103.6 M tonnes @ 2.47% Zn, 1.03% Pb, 33 gpt Ag in the inferred category.
  • Aztec Minerals Corp. completed 13 reverse circulation holes for a total of 1,646 m at its Cervantes project in Sonora. The holes were drilled on the California gold zone target, with step out drilling to expand the zone to the north, west, east and south, where previous drilling has intercepted extensive shallow, wide oxide mineralization. “The gold mineralization at Cervantes is characterized by oxidized and unoxidized stockwork veinlets of A, B, and C types and disseminated sulfide sites, with silicification and phyllic alterations, typical of large porphyry Au hosted deposits in similar geological settings. Potassic alteration is present in places and is associated with sulphide mineralization as well.” Geological logging of the RC chips showed evidence of wide zones of oxidized, strongly altered rocks with multiple veinlets. Results are pending.

ON DEALS AND CORPORATE ISSUES

  • Atacama Copper Corp. has entered into a business combination agreement on December 15, 2023 with TCP1 Corp. and 1000723052 Ontario Corp. “a wholly-owned subsidiary of the Company, pursuant to which the Company will acquire all of the issued and outstanding shares of TCP1 in exchange for common shares of the Company which will result in the reverse takeover of the Company by TCP1.” After the business combination the company will consolidate its share capital on 6 to 1 basis. Prior to the closing of the proposed transaction Atacama Copper shall complete the private placement for gross proceeds of CAD$10 M. The net proceeds are to be used to advance exploration programs with focus on Cristina (Chihuahua) and Yecora (Sonora).
  • Santacruz Silver Mining Ltd. announced the sale of its shares in Santacruz Holdings Ltd., “which has 100% ownership in Impulsora Minera Santacruz, S.A. de C.V., a non-core Mexican subsidiary of the Company, to a private Mexican group” (Zimapan, Hidalgo).
  • Xali Gold Corp. entered into a rent to purchase agreement with Grupo Minero WIYA (A Mexican company) to operate the San Dieguito de Arriba (SDA) plant in Nayarit. WIYA agreed to pay Xali US$150 K per month (of which the first US$150 K were paid in early December 2023) for ten months. Upon completion of paying a total of US$1.5 M within 12 months, WIYA will have the right to own the SDA plant, and the obligation to complete all repairs and permitting to get the SDA plant into operation.  The company will share the profits from the transaction with Magellan Acquisition Corp., as each own 50% of the SDA plant (El Oro, Estado de Mexico).
  • Bear Creek Mining Corp. announced the appointment of Mr. Fernando Ragone as chief financial officer (CFO).
  • Vizsla Silver Corp. provided a summary of its 2023 activities and key objectives for 2024. The company completed over 98,000 m of drilling at Panuco, in Sinaloa, expanding and upgrading mineralization at the Copala and Napoleon areas. “Mineralization at Copala has now been traced over 1,770 metres along strike, ~450 metres down dip, and remains open to the north and southeast”. Notable discoveries include the La Luisa and Molino veins, with La Luisa having been traced for 1,670 m along strike and to 450 m of depth, with an average width of 3.21 m. Key objectives for 2024 include an updated mineral resource estimate in January 2024, a potential royalty spinout, the delivery of a maiden PEA in H1 2024, complete an updated metallurgical testing, complete +65,000 m of resource/discovery drilling and completing a 1,100 line Km EM survey and acquire high-resolution multispectral satellite imagery for the district.
  • Sailfish Royalty Corp. entered into a share purchase option agreement with CMC Metals Ltd. granting CMC the option to acquire 100% of the shares of Swordfish Silver Corp. “Swordfish, through Sailfish de Mexico S.A. de C.V., holds the mineral rights in and to the silver exploration project located in the Municipality of San Dimas, State of Durango, Mexico, known as the Gavilanes property”. CMC reimbursed US$27.4 K to Sailfish for project expenses in 2023. In order to exercise the option, CMC has to pay Sailfish US$500 K before the end of March 2024, US$500 K before the end of March 2025, US$500 K before the end of March 2026 and US$2 M before the end of March 2027; issuing 1 M CMC shares upon acceptance by the TSX of the agreement, $700 K in CMC shares on or before the end of March 2024 and $500 K in shares on or before the end of March 2025; also CMC must incur exploration expenses of C$1 M before the end of March 2025, C$1.5 M before the end of March 2026 and C$2.5 M on or before the end of March 2027.
  • Santacruz Silver Mining Ltd. held its annual general meeting on December 20, 2023 (Zimapan, Hidalgo).
  • Mag Silver Corp. appointed Tom Peregoodoff to the board of directors effective January 1, 2024 (Juanicipio, Zacatecas).

ON SOCIAL RESPONSIBILITY

  • Vizsla Silver Corp. published its inaugural sustainability report. Key performance highlights include: The commissioning of a green house inventory and exploration of options to incorporate on-site renewable energy. Bi-annual health fairs and community health campaigns and achieving one million hours of consecutive work hours without a lost time incident. Preparation of the inaugural sustainability report and the use of a new software platform to track and enhance ESG performance (Panuco, Sinaloa).

On the image below: Silicified ridges on a project of the Sonoran Desert. Picture by Jorge Cirett.