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

Quartz Vein-Breccia

By Miguel A Heredia

During the 24th week of the year (June 14th to June 20th, 2021), at least 15 press releases were announced by companies working in Mexico and 6 news published by the media, with seven reporting on resources and developments, five informing on exploration results, four commenting on Mexican issues, two announcing financial rounds, two discussing social issues, and one disclosing deals and corporate issues.  ON MEXICO ISSUES, Dhipna Yanssen Weichselbaum, head of the Federal Programs in Baja California explained that 12,000 people will be consulted in Mulegé to carry out the consultation of El Boleo. The Argentine Embassy in Mexico along with the Ministry of Mining of that country carried out a working seminar with the Mexican company Baluarte Minero (Industrias Peñoles and Fresnillo PLC). The consultation for the nationalization of lithium, proposed by President Andrés Manuel López Obrador, is not necessary, since, it is already owned by Mexico. ON EXPLORATION, In Sonora, Tocvan and its JV partner Colibri reported drill results from its the El Pilar project, and Tarachi started a second drilling program on its San Javier mining concession at La Colorada gold bearing breccia pipe. In Chihuahua, Mammoth reported results from an additional 1.7km of 3D geophysical modeling conducted at its Tenoriba project. In Nayarit, Sierra Madre provided an update on the activities developed at its Tepic project. ON MINING, no relevant news. ON FINANCING, Azucar granted stock options to certain directors and officers of the company (El Cobre project, Veracruz). Advance Gold closed a private placement financing for gross proceeds of $200K (Tabasqueña project, Zacatecas). ON RESOURCES AND DEVELOPMENT, Almaden completed a surface induced polarization geophysical (IP) program at its Ixtaca project in Puebla. GoGold released results from eight drill holes collared at its Los Ricos project in Jalisco. Silver Viper filed on SEDAR a NI 43-101 technical report supporting the maiden mineral resource estimate for its La Virginia project in Sonora. Torex released an updated mineral resource estimate for its media Luna project in Guerrero. Zacatecas Silver announced positive preliminary metallurgical test results from its Zacatecas Silver property. Excellon filed on SEDAR an independent NI 43-101 technical report for its La Platosa mine in Durango. Ridgestone announced that it filed on SEDAR a NI 43-101 technical report for its Guadalupe y Calvo project in Chihuahua.    ON DEALS AND CORPORATE ISSUES, SilverCrest presented results of its annual general meeting of shareholders (Las Chispas project, Sonora).    ON SOCIAL RESPONSIBILITY, Peñoles community center received population from 40 to 49 years for anticovid vaccine in Torreón. Peñoles and Fresnillo plc announced that they are training young Mexicans in seven states.

ON MEXICO ISSUES

  • Dhipna Yanssen Weichselbaum, head of the Federal Programs in Baja California explained that 12,000 people will be consulted in Mulegé to carry out the consultation of El Boleo. the procedure will consist of 2 phases: one is the publication of the call to know the expansion of the MIA project and then the citizen consultation that will take place in the communities of Santa Rosalía and San Ignacio, among others, which are related to the El Boleo mining company.
  • The Argentine Embassy in Mexico along with the Ministry of Mining of that country carried out a working seminar with the Mexican company Baluarte Minero (Industrias Peñoles and Fresnillo PLC). The group’s interest was particularly focused on the provinces of Neuquén, Rio Negro, Salta, Mendoza and San Juan, where Mexican businessmen expressed their intention to evaluate the possibility of investing in mining projects in the region. Technical experts and professionals from Baluarte Minero were informed about prospects for gold, silver, copper, potassium and lithium in Argentina.
  • According to experts of the Association of Mining Engineers, Metallurgists and Geologists of Mexico (AIMMGM), the consultation for the nationalization of lithium, proposed by President Andrés Manuel López Obrador, is not necessary, since, it is already owned by Mexico. Article 27 of the constitution clearly states that all mineral deposits that are in Mexican territory are property of the Nation, so it would not be necessary to nationalize lithium.

ON EXPLORATION

  • Tocvan Ventures Corp., and its JV partner Colibri Resource Corporation reported drill results from four RC holes collared at its the El Pilar project in Sonora. Highlights includes a drill intersection of 0.66 g/t Au over a length of 35.1m in hole JES-21-43 drilled at the Main Zone. This drill intercept includes 1.7 g/t Au over 13.7m, including 6.8 g/t Au and 7 g/t Ag over 3.1m. Tocvan is currently completing 3,500m of RC drilling in 20 holes comprising its Phase II program at Pilar. Thirteen RC holes are still pending of assay results.
  • Tarachi Gold Corp., started a second drilling program on its San Javier mining concession at La Colorada gold bearing breccia pipe. The plan is to drill four holes down-dip of the breccia pipe to test the continuity of the positive results encountered from the 2020 drill program performed at the property, which returned high grade intersections.
  • Mammoth Resources Corp., reported results from an additional 1.7km of 3D geophysical modeling conducted at its Tenoriba project in Chihuahua. “This additional 3D modelling shows similar strong correlation between IP/Mag  geophysical features and anomalous surface gold-in-soil, chips and channel samples together with numerous gold intervals in diamond drilling and extends these coincident features over this additional 1.7Km of a total of 4km of IP/Mag coverage over a larger 6km east-west trend of surface gold-silver mineralization at Tenoriba”.
  • Sierra Madre Gold and Silver Ltd., provided an update on the activities developed at its Tepic project in Nayarit. The company has already drilled over 80% of the 2,000m and is expected to be completed soon. This is part of the 20 RC holes panned for its phase 1 drilling program. RC drill results will be released once assaying is completed. Sierra Madre is preparing new drill permits to conduct a Phase 2 drill program for additional 100-200 holes. The company also has commenced a 2,700m Phase 1 trenching program for the central project area. It will help to provide information to consider designing the Phase 2 drill program. The company also announced that, mapping and sampling continue in the northern and eastern project areas with an emphasis on prospecting arroyos and creek beds for signs of mineralization.

ON MINING

  • No relevant news.

ON FINANCING

  • Azucar Minerals Ltd., granted stock options to certain directors and officers of the company to purchase an aggregate of 413K common shares at an exercise price of $0.13 per share which expire on June 14, 2023 (El Cobre project, Veracruz).
  • Advance Gold Corp., closed a private placement financing for gross proceeds of $200K. The company plans to use the proceeds to advance their lithium-potassium boron prospective salars in central Mexico and for general corporate purposes.

ON RESOURCES AND DEVELOPMENT

  • Almaden Minerals Ltd., completed a surface induced polarization geophysical (IP) program at its Ixtaca project in Puebla. The IP results are being processed and combined with geological, geochemical and geophysical data collected in the past to outline drill targets beneath the Southeast Alteration Zone and at depth beneath the Ixtaca deposit.
  • GoGold Resources Inc., released results from eight drill holes collared at the Casados deposit at its Los Ricos North project in Jalisco. The most significant drill intersection was encountered in hole LRGCS-21-043 with 0.12 g/t Au and 270 g/t Ag (3.72 g/t AuEq or 279 g/t AgEq) over 0.9m, plus 0.46 g/t Au and 135 g/t Ag (2.25 g/t AuEq or 169 g/t AgEq) over 0.46m, plus 0.43 g/t Au and 132 g/t Ag (2.19 g/t AuEq or 164 g/t AgEq) over 33.6m, including 0.88 g/t Au and 270 g/t Ag (4.48 g/t AuEq or 336 g/t AgEq) over 15.3m, including 1.78 g/t Au and 539 g/t Ag (8.97 g/t AuEq or 673 g/t AgEq) over 6.7m, including 3.77 g/t Au and 930 g/t Ag (16.17 g/t AuEq or 1,213 g/t AgEq) over 1.9m.
  • Silver Viper Minerals Corp., filed on SEDAR a NI 43-101 technical report supporting the maiden mineral resource estimate for its La Virginia project in Sonora. El Rubi Zone contains an indicated resource of 6,179,000 tonnes of 0.78 g/t Au and 35 g/t Ag for 154.3K Oz Au and 6.93M Oz Ag, and inferred resources of 3,255,000 tonnes of 0.9 g/t Au and 36 g/t Ag for 94.1K Oz Au and 3.75M Oz Ag in open pit category. Virginia, El Oriental, Las Huatas and Las Huatas South add and inferred resource of 6,622,000 tonnes of 0.71 g/t Au and 41 g/t Ag for 152.2K Oz Au and 8.74M Oz Ag in open pit category, and 277K tonnes of 1.92 g/t Au and 62 g/t Ag for an additional 14K Oz Au and 451.5K Oz Ag in the underground category. Gold and Silver Equivalents for Indicated resource equal 253,286 Oz AuEq or 17,730,000 Oz AgEq. Gold and Silver Equivalents for Inferred resource equal 445,176 Oz AuEq or 31,162,300 Oz AgEq.
  • Torex Gold Resources Inc., released an updated mineral resource estimate for its media Luna project in Guerrero. Torex reported indicated resources for 20.9M tonnes of 3.21 g/t Au, 32 g/t Ag, and 1.07% Cu (5.27 g/t AuEq) to contain 2.15M Oz Au, 21.3M Oz Ag, and 492M Lb Cu (3.54M Oz AuEq), and inferred resources for 18.9M tonnes of 2.11 g/t Au, 28 g/t Ag, and 1.04% Cu (4.08 g/t AuEq) to contain 1.28M Oz Au, 17.1M Oz Ag, and 431M Lb Cu (2.48M Oz AuEq).
  • Zacatecas Silver Corp., announced positive preliminary metallurgical test results from its Zacatecas Silver property, for both bulk flotation and sequential flotation recovery options,  with the bulk floatation flow-path producing a single gold, silver, lead and zinc rougher concentrate (15 minutes of floatation and 23% mass pull) with 697 g/t silver, 0.97 g/t gold, 1.67% zinc and 0.58% lead and recovering 96.2 % of the silver, 93.6% of the gold, 96.5% of the zinc and 92.1 % of the lead.
  • Excellon Resources Inc., filed on SEDAR an independent NI 43-101 technical report. This technical report documents a mineral resource statement for the Platosa Mine in Durango. The company reported measured + indicated resources for 317K tonnes of 485 g/t Ag, 5.3% Pb, and 5.5% Zn to contain 4.9M Oz Ag, 36.79M Lb Pb, and 38.78M Lb Zn, and inferred resources for 42K tonnes of 749 g/t Ag, 4.3% Pb, and 5.4% Zn to contain 1M Oz Ag, 4M Lb Pb, and 5M Lb Zn.
  • Ridgestone Mining Inc., announced that it filed on SEDAR a NI 43-101 technical report to support the maiden mineral resource estimate for its Guadalupe y Calvo project in Chihuahua. Ridgestone reported indicated resources for 6,427,444 tonnes of 50 g/t Ag and 1.05 g/t Au (1.72 g/t AuEq) to contain 10.43M Oz Ag and 217K Oz Au (356K Oz AuEq), and inferred resources for 3,074,146 tonnes of 94 g/t Ag and 3.4 g/t Au (4.65 g/t AuEq) to contain 9.3M Oz Ag and 335.6K Oz Au (460K Oz AuEq).

ON DEALS AND CORPORATE ISSUES

  • SilverCrest Metals Inc., presented results of its annual general meeting of shareholders held in Vancouver, BC, Canada (Las Chispas project, Sonora). 

ON SOCIAL RESPONSIBILITY

  • Industrias Peñoles S.A.B. de C.V., community center received population from 40 to 49 years and pregnant women of more than nine weeks of gestation for anticovid vaccine in Torreón. The inoculation is carried out by personnel of the General Hospital of the Zone from the Mexican Social Security Institute  # 18 (IMSS) as well as nurses from said mining company.
  • Industrias Peñoles S.A.B. de C.V., and Fresnillo plc announced that they are training young Mexicans in seven states. Both companies recognize that education plays an important role in people’s lives, because it provides them with new tools that contribute to improve their quality of life. In this sense, they teach specialized courses for girls, children and young people in various areas such as science, technology, engineering, human development, health, entrepreneurship and children’s literacy, among others.

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

On the picture above, a quartz vein-bx in a low sulphidation epithermal system in a prospect in Chihuahua, Mexico.  Photo by Miguel A Heredia.

Benjamin Hill Sampling Up To 31.4g/t Au, Provides Update on Sonora Projects

VANCOUVER, British Columbia, May 06, 2021 (GLOBE NEWSWIRE) — Benjamin Hill Mining Corp. (CSE: BNN) (“BHM” or the “Company”) is pleased to announce additional assay results at the Benjamin Hill property, comprised of the Sonora Gold and Sonora Copper concessions: Chip sample of 31.4g/t Au and multiple chip samples ranging from 4.0 – 8.0 g/t Au.

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

Magnetite-rich Fe skarn manto

By Miguel A Heredia

During the 14th week of the year (April 05th to April 11th, 2021), at least 35 press releases were announced by companies working in Mexico and 4 news published by the media, with nine informing on exploration results, eight disclosing deals and corporate issues, seven announcing financial issues, six reporting on resources and development, six communicating production and financial results, two discussing social issues, and one commenting on Mexican issues.  ON MEXICO ISSUES, Compañía Minera Cuzcatlán (Fortuna Silver) declared that it pays taxes and reiterated its attachment to the government mechanisms that drive Mexico’s socio-economic development (San Jose mine, Oaxaca). ON EXPLORATION, In Baja California, One World Lithium announced that a drill crew will be mobilizing to its Salar del Diablo project in Baja California, to drill a third diamond drill hole. In Sonora, Colibri informed that it will commence a 3D IP survey at its Evelyn project, Heliostar released first pass sampling and mapping results from its Cumaro project, Ridgestone announced encouraging results from geophysical surveys and follow-up work on its Rebeico project, and Silver Tiger reported drill results in the Benjamin vein zone at its El Tigre project. In Sinaloa, Vizsla provided results from eighteen holes collared along the Napoleon Vein corridor at its Panuco project. In Zacatecas, Alien reported sampling results from dumps/floats at its San Celso property, and Zacatecas Silver completed geological and structural mapping at its El Cristo project.  In San Luis Potosi, Advance Gold started a drilling program at its Saldivar lithium salar project. ON MINING, Endeavor reported Q1, 2021 production results from its Mexican mine operations. GoGold presented Q1, 2021 production and financial results from its Parral Tailings project in Chihuahua. Magna Gold reported year end 2020 financial results from its San Francisco mine in Sonora, and provided production guidance for 2021. Mexus Gold announced its plans to blast at its Santa Elena mine in Sonora. Telson reported Q1, 2021 production results from its Campo Morado mine in Guerrero. Torex presented Q1, 2021 production and financial results from its El Limon-Guajes Mine Complex in Guerrero.  ON  FINANCING, Aura Minerals announced a clarification of its payments of dividends (Aranzazu mine, Zacatecas). Canuc granted 6M incentive stock options to officers, directors, employees, and consultants (San Javier project, Sonora). Capitan Mining announced a non-brokered private placement for gross proceeds of CAD $3.2M (Peñoles property, Durango). GR Silver entered into a bought deal private placement financing agreement for gross proceeds of $ 8M (Plomosas project, Sinaloa). Santacruz announced a private placement for gross proceeds of up to CAD $14.1M (Zimapan mine, Hidalgo). Silver Spruce granted 759K stock options to its CEO (El Mezquite project, Sonora).  Tarachi Gold commenced to trade on the OTCQB Venture Market under the ticker symbol “TRGGF” (Magistral Mill and Tailings project, Durango).  ON RESOURCES AND DEVELOPMENT, Almadex announced its intention to drill at least three of its Mexican mining properties in 2021, and discussed plans for El Cobre and Ixtaca properties located in Veracruz and Puebla respectively. Consolidated Zinc reported that mill and flotation circuits commissioning commenced over Easter at its Plomosas mine in Chihuahua. Prime released drill results from el Zapote South, Noche Buena, and San Miguel East deposits at its Los Reyes project in Sinaloa. Sonoro reported results from 12 RC holes drilled at its flagship property Cerro Caliche in Sonora. VanGold filed a PEA for combined El Pinguico-El Cubo projects in Guanajuato. ON DEALS AND CORPORATE ISSUES, Discovery Metals announced name change to Discovery Silver (Cordero project, Chihuahua).  Equinox completed the acquisition of Premier Gold and the spin out of i-80 Gold Corp. (Los Filos mine, Guerrero and Mercedes mine, Sonora). Gatos Silver appointed Rodrigo Monroy as General Counsel effective April 1st, 2021 (Los Gatos mine, Chihuahua). Minaurum engaged Digital Marketing Firm and granted 3,825,000 common share stock options to Directors, Officers and Consultants (Alamo Silver project, Sonora). Minera Autlán announced the appointment of Pedro Rivero González as its General Management of the company as of April 5, 2021 (Molango mine, Hidalgo). Santacruz announced that the acquisition of the Zimapan assets is now expected to close on or before April 16, 2021. Tarachi Gold appointed a new member to its Board of Directors and announced the change of Auditor (Magistral Mill and tailings project, Durango). Torex announced that it received a key environmental permit for its Media Luna project in Guerrero.  ON SOCIAL RESPONSIBILITY, Arcelor Mittal delivered a donation of MXP $140K to the Red Cross Delegation of Lázaro Cárdenas in Michoacan. Fresnillo plc., supported workshop members of the El Obligado Community in Fresnillo, Zacatecas who make face masks for the population of nearby communities.

ON MEXICO ISSUES

  • Compañía Minera Cuzcatlán (Fortuna Silver Mines Inc.) declared that it has complied in due time and form with more than MXP $600M for the total federal taxes caused, corresponding to the 2020 annual fiscal year. The payment from an effective tax rate to the mining sector of 45%is one more sample strict adherence to legality and government mechanisms that promote the socio-economic development of the country (San Jose mine, Oaxaca).

ON EXPLORATION

  • One World Lithium Inc., announced that a drill crew will be mobilizing to its Salar del Diablo project in Baja California, to drill a third diamond drill hole. DDH-3 will be located approximately 50Km to the south of DDH-2.
  • Colibri Resource Corporation, informed that it will commence a 3D IP survey at its Evelyn project in Sonora. The 3D IP survey will be focused on the Sahuaro and Cerro Rojo targets and will cover an area of approximately 6 square km. The Company is planning a drill program to test currently defined mineralized trends and structures, to evaluate the emerging geological and structural model for the property, and to test results of the IP survey.
  • Heliostar Metals Limited released first pass sampling and mapping results from its Cumaro project in northern Sonora. Heliostar identified a silicified structure with pyrite and returned 1m channel sample grading 390 g/t Ag, and remains open to expand. Additionally, eleven channel and rock samples returned values >1 g/t Ag in a coherent anomaly that cover an area of 500m by 600m, being this area the extension of the Dos Amigos vein into the eastern block. This mineralization indicates a robust silver endowment and shows the potential for high grades in the eastern block of the El Picacho district.
  • Ridgestone Mining Inc., announced encouraging results from geophysical surveys and follow-up work on its Rebeico project. The IP survey outlined a strong IP high chargeability anomaly of 1,400m north-south and 800m east-west at the south portion of the Alaska vein, at depths of 250 to 300 metres below surface, progressively increasing in width and intensity toward the south.
  • Silver Tiger Metals Inc., reported drill results in the Benjamin vein zone at its El Tigre project in Sonora. Significant drill intersects were encountered in hole ET-21-204 with 140 g/t Ag, 0.12 g/t Au, 0.08% Cu, 3% Pb, and 8.5% Zn (519 g/t AgEq) over 14.2m, including 273 g/t Ag, 0.14 g/t Au. 0.18% Cu, 5.5% Pb, and 17 % Zn (1,013 g/t AgEq) over 5.6m; hole ET-21-206 with 181 g/t Ag, 0.07 g/t Au, 0.05% Cu, 0.6% Pb, and 1.8% Zn (267 g/t AgEq) over 12.3m, including 1,034 g/t Ag, 0.18 g/t Au, 0.29% Cu, 2.7% Pb, and 8.8% Zn (1,443 g/t AgEq) over 2m; and hole ET-20-199 with 222 g/t Ag, 0.05 g/t Au, 0.09% Cu, 0.5% Pb, and 1.7% Zn (305 g/t AgEq) over 7.7m, including 699 g/t Ag, 0.11 g/t Au, 0.2% Cu, 2% Pb, and 7% Zn (1,016 g/t AgEq) over 1.1m.
  • Vizsla Silver Corp., provided results from eighteen holed collared along the Napoleon Vein corridor at its Panuco project in Sinaloa. The company estimated from 54 drill holes, an average vein true width of 4m, a weighted average grade of 155 g/t Ag, 2.74 g/t Au, 0.5% Pb, and 1.3% Zn (441 g/t AgEq), and mineralization extends over 300m in length, 300m  deep, and remains open north, south, and at depth. The best drill intercept was encountered in hole NP-21-80 with 469 g/t Ag, 5.84 g7t Au, 0.5% Pb, and 1.2% Zn (1, 027 g/t AgEq) over a true width (TW) of 4.61m, including 1, 321 g/t Ag, 15.1 g/t Au, 1.3% Pb, and 2.6% Zn (2, 740 g/t AgEq) over a TW of 1.51m.
  • Alien Metals ltd., reported encouraging dump/floats sampling results from its New Andromeda concession adjacent to its San Celso property in Zacatecas. Highlights include 734 g/t Ag, 0.44 g/t Au and 0.6% Zn; 163 g/t Ag, 0.42 g/t Au and 1.9% Zn; 488 g/t Ag; 270 g/t Ag; and 180 g/t Ag and 0.13% Zn. “The samples are all composed of quartz and carbonate dominant vein material with varying amounts of sulphides, hence they are very similar to the mineralization seen in the San Celso vein systems to the north”.  
  • Zacatecas Silver Corp., completed geological and structural mapping at its El Cristo project located immediately to the northwest of the Veta Grande deposit. The Veta Grande vein has reported historical production of over 200 M Oz Ag in the region. The geological and structural mapping identified at least eight veins to date which are associated with a sigmoidal zone of extension that is at least 800 m wide, over a strike length of at least 4 km extending the previous reported strike length of 2.5 to 3.0km. Zacatecas Silver has commenced an extensive soil sampling program to assist with location of veins beneath cover of thin soils. “The cumulative strike length of all veins at El Cristo is at least 12 km long. El Cristo an extremely prospective system with numerous high value targets at vein intersections, splays and flexures. Veins display multiphase and brecciated textures, indicative of multiple mineralizing events. Zacatecas Silver is planning an aggressive rock-chip and channel sampling program to better define the silver-base metal grade distribution of the outcropping veins, to ensure that the highest value targets are drill tested”.
  • Advance Gold Corp., started a drilling program at its Saldivar lithium salar project in San Luis Potosi to test near surface lithium grade distribution of the salar for bulk sampling preparation. The drilling program will be carried out on a grid basis using 100m spacing with holes drilled down to 50m. The company also plans to drill deeper in one of the holes to test the depth to bedrock.

ON MINING

  • Endeavor Silver Corp., reported production results from its Mexican mine operations. The table below shows figures for Q1, 2021 by mine:
  • GoGold Resources Inc., presented Q1, 2021 production and financial results from its Parral Tailings project in Chihuahua. GoGold produced 302.9K Oz Ag, 3,208 Oz Au, and 192.6K Lb Cu (551.2K Oz AgEq), generating free cash flows exceeding USD $5.5Mthis quarter.
  • Magna Gold Corp., reported year end 2020 financial results from its San Francisco mine in Sonora. The company sold 20,235 Oz Au and 9,188 Oz Ag. Magna reported metal revenues of USD $37M, net cash flow provided by operating activities of USD $9.4M, net cash provided by financial activities of USD $9.4M, and income from mining operations of USD $1.9M. “The Company is setting guidance expectations for gold production during 2021 of between 55K to 65K Oz Au. The Company expects to have the San Francisco Mine fully commissioned before the end of Q2 2021”.
  • Mexus Gold US announced its plans to blast at its Santa Elena mine in Sonora. The blasts will produce 10K tonnes of 2.2 g/t Au, and Mexus expects to be producing gold from this material within 30 days of the blast.
  • Telson Mining Corporation reported Q1, 2021 production and financial results from its Campo Morado mine in Guerrero. Telson milled 174.4 K tonnes of 1.1 g/t Au, 116 g/t Ag, 1% Pb, and 3.9% Zn with metallurgical recoveries of 21%, 41%, 27%, and 74% respectively. To produce 11 tons of Zn concentrate and 1.9 tonnes of Pb concentrate. The company reported revenues of $10.04M from Zn concentrates and $1.9M from Pb concentrate for total revenues of $11.9M.
  • Torex Gold Resources Inc., presented Q1, 2021 production results from its El Limon-Guajes Mine Complex in Guerrero.  The company produced 129K Oz Au from an average underground ore mined of 1, 360 tonnes per day and an average open pit ore mined of 15,090 tonnes per day, and an average plant throughput of 12,340 tonnes per day. Torex provided full year production guidance for 2021 of 430K to 470K Oz Au.

ON FINANCING

  • Aura Minerals Inc., announced a clarification with respect to its payments of a dividend of USD $0.38 per common share, as previously announced by the company on March 15, 2021 (Aranzazu mine, Zacatecas).
  • Canuc Resource Corporation, granted 6M incentive stock options to officers, directors, employees, and consultants. 3.5 M of these options will vest immediately. The remaining 2.5 M options will vest 12 months from April 2nd, 2022. The stock options have an exercise price of $0.35 and a three-year term, expiring on April 2nd, 2024 (San Javier project, Sonora).
  • Capitan Mining Inc., announced a non-brokered private placement for net proceeds of CAD $3.2M from 16M common shares at a price of CAD $0.20 per share. Capitan Mining plans to use the net proceeds to advance drilling and work programs at Peñoles property in Durango, as well as for working capital and general corporate expenses.
  • GR Silver Mining Ltd., entered into a bought deal private placement financing agreement for gross proceeds of $ 8M at a price of $0.59 per unit. Net proceeds will be used for working capital and general corporate purposes (Plomosas project, Sinaloa). 
  • Santacruz Silver Mining Ltd., announced a private placement for gross proceeds of up to CAD $14.1M (Zimapan mine, Hidalgo).
  • Silver Spruce Resources Inc., granted 750K stock options to its CEO at an exercise price of $0.05 per share and an expiry date of April1, 2026. The stock options will vest 1/3 on the date of the grant, 1/3 on the first anniversary of the grant and the final 1/3 on the second anniversary of the grant (El Mezquite project, Sonora).   
  • Tarachi Gold Corp., commenced to trade on the OTCQB Venture Market under the ticker symbol “TRGGF” (Magistral Mill and Tailings project, Durango). 

ON RESOURCES AND DEVELOPMENT

  • Almadex Minerals Ltd., announced its intention to drill at least three of its Mexican mining properties in 2021, and discussed plans for El Cobre and Ixtaca properties located in Veracruz and Puebla respectively. At El Cobre, Veracruz, Almadex previously reported  an indicated resource containing 748K Oz Au and 221M Lb Cu (47.2 M tonnes grading 0.49 g/t Au, 0.21% Cu and 1.4  g/t Ag) and an inferred resource containing 860K Oz Au and 254 M Lb Cu (64.2M tonnes grading 0.42 g/t Au, 0.18% Cu and 1.3 g/t Ag).  Almadex looks forward to further developments at this high potential project. At Ixtaca, Puebla, a FS reported a proven and probable reserve containing 1.38M Oz Au and 85.1M Oz Ag (73.1M tonnes grading 0.59 g/t Au and 36.3 g/t Ag). The Ixtaca project is currently in the mine permitting phase, which has taken longer than expected. Almaden has recently noted the exploration potential remaining at the Ixtaca project and the Company looks forward to the results of the Ixtaca exploration programs over the course of 2021.
  • Consolidated Zinc Limited, reported that mill and flotation circuits commissioning commenced over Easter at its Plomosas mine in Chihuahua. It also announced that the tailings dam earthworks is completed, laying of the impervious liner is 70% complete, and the power supply installed, commissioned, and operated.  
  • Prime Mining Corp., released drill results from el Zapote South, Noche Buena, and San Miguel East deposits from its ongoing 15,000m phase 1 drill program at its Los Reyes project in Sinaloa. At El Zapote South deposit, significant mineralized drill intercepts have been encountered at hole 21ZAP-04 with 8.95 g/t Au and 74 g/t Ag over 4.5m; hole 21ZAP-03 with 0.76 g/t Au and 33 g/t Ag over 13m, including 1.66 g/t Au and 41 g/t Ag over 4.6m; and hole 21ZAP-08 with 1.96 g/t Au and 63 g/t Ag over 18.7m, including 2.44 g/t Au and 85 g/t Ag over 7.2m. At Noche Buena deposit, hole 21NB-02 encountered 3.17 g/t Au and 141 g/t Ag over 2.9m within a broader zone of 39m with 0.7 g/t Au and 29 g/t Ag; and hole 21NB-03 with 1.12 g/t Au and 30 g/t Ag over 6m. At San Miguel deposit, hole 2SME-01 intersected 1 g/t Au and 131 g/t Ag over 4.5m. Zapote-South, Noche Buena and San Miguel East deposits are three of eight known deposits that comprise the current mineral resource at Los Reyes property.
  • Sonoro Gold Corp., reported results from 12 RC holes drilled at its flagship property Cerro Caliche in Sonora. Highlights include hole SCR-223 in the north western extension of Buena Suerte zone with 0.6 g/t Au over 74.67m, including three intervals of 1.52m with 3.67 g/t Au; hole SCR-222 in the Buena Vista northwest extension of Japoneses zone with 2.04 g/t Au over 15.24m, including 3.15 g/t Au over 6.1m; hole SCR-227 in the northern extension of Japoneses zone with 1.74 g/t Au over 3.05m, including 2.54 g/t Au over 1.53m; and hole SCR-225 at El Colorado zone with 1.16 g/t Au over 7.62m, including 2.31 g/t Au over 3.05m.
  • VanGold Mining Corp., filed a PEA for combined El Pinguico-El Cubo projects in Guanajuato. Results of the PEA analysis were previously announced in the Company’s news release dated February 16, 2021. The company also announced that it obtained permits for El Pinguico road expansion. New route will lessen impact on the Calderones Community. “This road will become El Pinguico’s major thoroughfare for production, exploration, administration, and for safely purposes. The Company anticipates it will reduce driving time between the destinations from 40 minutes to 10 minutes, significantly reducing costs and wear on vehicles”. 

ON DEALS AND CORPORATE ISSUES

  • Discovery Metals Corp., announced name change to Discovery Silver Corp. The company´s common shares will commence trading under the TSX Venture Exchange under its current ticker symbol “DSV” and on the OTCQX where its ticker symbol will change from “DSVMF” to “DSVSF” from April 14, 2021, pending final regulatory approvals from the TSXV and FINRA (Cordero project, Chihuahua).
  • Equinox Gold Corp., completed the acquisition of Premier Gold Mines Limited and the spin out of i-80 Gold Corp. (Los Filos mine, Guerrero and Mercedes mine, Sonora).
  • Gatos Silver Inc., appointed Rodrigo Monroy as General Counsel effective April 1st, 2021, and strengthens its executive management team (Los Gatos mine, Chihuahua).
  • Minaurum Gold Inc., engaged Digital Marketing Firm to assist with online communication to the company, with the goal of increasing market awareness. Minaurum will pay to the Digital Marketing Firm a fee of CAD $64K for six months. The company also granted 3,825,000 common share stock options to Directors, Officers and Consultants. The options are exercisable at a price of $0.52 from a period of ten years from issue date (Alamo Silver project, Sonora).
  • Compañía Minera Autlán, S.A.B. de C.V., reported that, with the prior favorable opinion of the Corporate Practices Committee and approval of its Board of Directors, in a session of February 24, 2021, it was resolved that Pedro Rivero González will assume the General Management of the company as of April 5, 2021 (Molango mine, Hidalgo).
  • Santacruz Silver Mining Ltd., announced that the acquisition of the Zimapan assets, together with the USD $17.6 M loan facility from Trafigura Mexico, S.A. de C.V., are now expected to close on or before April 16, 2021.
  • Tarachi Gold Corp., appointed a new member to its Board of Directors and announced the change of Auditor (Magistral Mill and tailings project, Durango).
  • Torex Gold Resources Inc., announced that it received from Mexico’s Secretariat of Environment and Natural Resources (“SEMARNAT”) the MIA, a key environmental permit for its Media Luna project in Guerrero. The MIA allows Torex to execute construction activities to access its Media Luna deposit in Guerrero.

ON SOCIAL RESPONSIBILITY

  • Arcelor Mittal México SA de CV, delivered a donation of MXP $140K in the framework of its 2021 annual collection to the Red Cross Delegation of Lázaro Cárdenas in Michoacán. ”Arcelor Mittal has made annual donations without interruption. since 2008 to the delegational Red Cross, in addition to collaborating with the worthy institution in different ways: through donations in its annual collections, in kind when necessary, such as the provision of equipment and various supplies, the delivery of an ambulance in 2016 and the repair of three ambulances last year, in addition to the support with facilities for their training”.
  • Fresnillo plc., supported workshop members of the El Obligado Community in Fresnillo, Zacatecas who make face masks for the population of nearby communities. The workshop workers are also suppliers of face masks for the Directorate of Engineering and Construction Department of Industrias Peñoles (DIC). To date, they have sold around 3,000 masks, the same that meet the specifications dictated by the World Health Organization.

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 magnetite-rich Fe skarn manto in a prospect in Chihuahua, Mexico.  Photo by Miguel A Heredia.

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

Orogenic Gold Vein

By Miguel A Heredia

During the twelfth week of the year (March 22th to March 28th, 2021), at least 26 press releases were announced by companies working in Mexico and 4 news published by the media, with seven disclosing deals and corporate issues, seven reporting on resources and development, five announcing financial rounds, five informing on exploration resources, three commenting on Mexican issues, two discussing social issues, and one communicating production and financial results.  ON MEXICO ISSUES, Americas Gold and Silver announced that its Cosala mine in Sinaloa continue on care and maintenance after a group of individuals blocked illegally their operation since last February 2020. The head of the Tax Administration Service (SAT), Raquel Buenrostro, declared that Mining companies pay only 0.0002% of their income in taxes, however, Fernando Alanís, president of the Mexican Mining Chamber (Camimex), stated that mining in Mexico has higher taxes than those of its direct competitors. Mexico’s rich mining industry has been the basis for the success of the automotive industry for more than 500 years. ON EXPLORATION, In Sonora, Silver Tiger reported results from two holes collared at its El Tigre project. In Chihuahua, Radius completed the phase four drilling at its Amalia project.  In Sinaloa, Kootenay commenced a 3,500m core drilling program at its Copalito project, and Brigadier reported that it has rehabilitated, mapped and sampled over 29 newly discovered historic mine workings in the central part of its Picachos project. In Durango, Mithril provided an update on the exploration activities carried out at its Copalquin property. ON MINING, Impact Silver reported the 2020 full year production and financial results from its Zacualpan mine in the State of Mexico. ON  FINANCING, Empress closed its previously announced bought deal offering for gross proceeds of CAD $15.75M, and also closed a non-brokered private placement for gross proceeds of CAD $650K (Pinos project, Zacatecas). Fabled commenced to trade on the OTCQB Venture Marketplace under the symbol “FBSGF” (Santa Maria property, Chihuahua). Gold Resource declared March 2021 monthly dividend (Arista mine, Oaxaca). Silver Spruce granted 250K stock options to a consultant of the company with an exercise price of $0.06 per share (El Mezquite project, Sonora). VanGold granted stock options to officers and directors of the company (El Pinguico property, Guanajuato).  ON RESOURCES AND DEVELOPMENT, Fabled release assay results of hole SM 20-06 from its ongoing 8,000m drilling program on its Santa Maria project at Chihuahua. Golden Minerals announced expansion drilling at its Rodeo project in Durango. GR Silver released assay results from the current core drilling program from its Plomosas property in Sinaloa. Orla provided an update on the construction of its Camino Rojo mine operation in Zacatecas. Sonoro reported results from 20 RC holes drilled at its flagship property Cerro Caliche in Sonora. Torex announced results from the 2020 infill drilling program at its Media Luna property in Guerrero. Zacatecas Silver reported results from the re-sampling of drill core from its Panuco property in Zacatecas.   ON DEALS AND CORPORATE ISSUES, Agnico announced the appointment of a new member to its Board of Directors (Pinos Alton mine, Chihuahua). Chesapeake announced the resignation of its Director (Metates property, Durango). GoGold presented results from its annual general meeting of shareholders (Los Ricos project, Jalisco). Inomin completed the 100% acquisition of the La Gitana and the Peña Blanca properties in Oaxaca from Gunpoint. Orogen appointed a new member to its Board of Directors (El Ermitaño, Sonora). Telson engaged RB Milestone Group LLC to provide corporate communications advisory, non-deal roadshow advisory, market intelligence advisory, and business referrals to the management team of the company (Tahuehueto project, Durango). ON SOCIAL RESPONSIBILITY, AIMMGM Sonora District Ladies Committee recycles to help children with cancer. Peñasquito mine (Newmont) awarded scholarships to students of the Ignacio López Rayón elementary school.

ON MEXICO ISSUES

  • Americas Gold and Silver Corporation announced that its Cosala mine in Sinaloa continue on care and maintenance after a group of individuals including a small minority of the company´s hourly workforce blocked illegally the operation since last February 2020. Americas has participated in a number of meetings and discussions with senior members of the Mexican federal government to regain access to the operations but the last comments made by the Mexican President on March 17, 2020 related to a possible cancelation of the mining concessions are concerning. The company is confident that there is no basis in the fact or in the law that would diminish the company´s property rights.”The company looks forward to continuing to work with the Canadian government, the Mexican Minister of Economy and the Minister of Foreign Affairs in providing the facts, providing solutions and resolving the issues to avoid an arbitration issue between Canada and Mexico. The company looks with optimism to getting our employees back on the job as soon as possible”.
  • The head of the Tax Administration Service (SAT), Raquel Buenrostro, declared that Mining companies pay only 0.0002% of their income in taxes, however, Fernando Alanís, president of the Mexican Mining Chamber (Camimex), stated that mining in Mexico has higher taxes than those of its direct competitors. “Surely the SAT will have its figures, but what the figures tell us is that mining pays taxes and that it has a higher tax rate than any other economic activity in the country and that if a higher tax burden continues to be imposed, mining it will not be attractive in Mexico”. Raquel Buenrostro assured that in order not to raise taxes, the institution that she heads would review the form of payment in the mining sector. In this same theme, figures contained in a study by Price Waterhouse Coopers assure that in Mexico the tax burden for the mining sector is 51.3% of fiscal profit, which places it well above countries such as Canada, Chile, Peru and the United States, which have tax rates of 30 to 39%. In addition, as of this year, the possibility of deducting 50% of the payment of rights on concessions was removed, so the tax rate rose to 52.6%.
  • Mexico’s rich mining industry has been the basis for the success of the automotive industry for more than 500 years. It was stated by Sergio Almazán, president of the Association of Engineers of Mines, Metallurgists and Geologists of Mexico (AIMMGM). For Francisco Quiroga, former Undersecretary of Mining of the Ministry of Economy, mining has allowed Mexico to extract iron to produce, along with carbon, steel, a key product for automotive manufacturing. Karen Flores, general director of the Mexican Mining Chamber (Camimex), agreed, highlighting that the mining sector contributes 8.3% to the industrial GDP and 2.5% to the national GDP. Mexican auto exports totaled USD $40,495M in 2020.

ON EXPLORATION

  • Silver Tiger Metals Inc., reported results from two holes collared at its El Tigre project in Sonora. Hole ET-21-211 collared in the Sooy Vein encountered 0.11 g/t Au, 131 g/t Ag, 0.06% Cu, and 0.44% Pb (156 g/t AgEq) over 14m, including 0.24 g/t Au, 325 g/t Ag, 0.14% Cu, and 1.21% Pb (385 g/t AgEq) over 4.9m, including 0.67 g/t Au,  1,149 g/t Ag, 0.47% Cu, and 4.3% Pb (1,347 g/t AgEq) over 1.4m, while hole ET-21-213 intercepted 0.02 g/t Au, 246 g/t Ag, 0.29% Cu, 0.05% Pb, and 0.05% Zn (279 g/t AgEq) over 8.4m in the Sooy Vein, including 0.05 g/t Au, 1,260 g/t Ag, 1.41% Cu, 0.04% Pb, and 0.25% Zn (1,355 g/t AgEq), and encountered 0.22 g/t Au, 266 g/t Ag, 0.13% Cu, 0.21% Pb, and 0.14% Zn (304 g/t AgEq) over 7.6m in the Sooy Footwall Zone, including  0.12 g/t Au, 808 g/t Ag, 0.35% Cu, 0.45% Pb, and 0.26 % Zn (871 g/t AgEq) over 2.3m, including 0.17 g/t Au, 3,046 g/t Ag, 1.35 % Cu, 1.54% Pb, and 0.86% Zn (3,254 g/t AgEq) over 0.6m.
  • Radius Gold Inc., drilled 4,386m in ten holes to complete the phase four drilling at its Amalia project in Chihuahua, through its JV partner Pan American Silver Corp. Results for holes AMDD20-22 to AMDD21-25 have been previously reported, with results for holes AMDD21-26 to 31 pending. “Geological teams are now conducting detailed mapping and sampling of the El Cuervo extensions and California vein system. New environmental permits have been submitted for drilling of these targets later this year”.
  • Kootenay Silver Inc., commenced a 3,500m core drilling program at its Copalito project in Sinaloa, to test continuity and size in zones already identified in a previous drilling campaign, as well as to test other undrilled target areas in the property.
  • Brigadier Gold Limited reported that it has rehabilitated, mapped and sampled over 29 newly discovered historic mine workings in the central part of its Picachos project in Sinaloa, near the intersection of the ENE trending Cocolmeca Vein system and northwesterly trending El Placer system. The underground workings are concentrated in two areas named El Cobre and El Placer Norte. Sampling results are pending.
  • Mithril Resources Ltd., provided an update on the exploration activities carried out at its Copalquin property, Durango. Hole CDH-054, collared at La Soledad target returned 10.36 g/t Au and 81 g/t Ag over 4.88m, extending the high-grade mineralization further to the west and down dip. The company also reported that a total of 697 soil samples collected at Los Pinos/El Indio, Los Reyes, Refugio and Zaragoza target areas were analyzed with the XRF analyzer identified strong silver anomalies in the district, with values ranging from less than detection (approximately 2 ppm) to 154 ppm Ag. Samples were considered anomalous at or above 5 ppm Ag. Anomalous silver was identified in all targets. Silver is considered to be a good indicator for hidden veins or portions of known veins that are better mineralized. The soil samples were shipped to the lab for Au assays. Results are pending.

ON MINING

  • Impact Silver Corp., reported the 2020 full year production and financial results from its Zacualpan mine in the State of Mexico. The company milled 140,069 tonnes of 172 g/t Ag to produced 646.5K Oz Ag, at a production cost of $80.82 per tonne produced. Impact reported a net income of $2.3M on $15.6 M in revenue and EBITDA of $2.5 M, and mine operating earnings before amortization and depletion of $3.3M. Cash position at December 31, 2020 was $20.4M and working capital of $20.3M.

ON FINANCING

  • Empress Royalty Corp., closed its previously announced bought deal offering for gross proceeds of CAD $15.75M. In addition to the offering, the company closed a non-brokered private placement by the issue of an additional 1.3M units of the company for gross proceeds of CAD $650K (Pinos project, Zacatecas).
  • Fabled Silver Gold Corp., commenced to trade on the OTCQB Venture Marketplace under the symbol “FBSGF” (Santa Maria property, Chihuahua).
  • Gold Resource Corporation declared March 2021 monthly dividend. The company will paid on April 23, 2021, one-third of a cent for common share to shareholders (Arista mine, Oaxaca).     
  • Silver Spruce Resources Inc., granted 250K stock options to a consultant of the company with an exercise price of $0.06 per share and an expiry date of March 23, 2026. The stock options will vest 1/3 on the date of the grant, 1/3 on the first anniversary of the grant and the final 1/3 on the second anniversary of the grant (El Mezquite project, Sonora).
  • VanGold Mining Corp., granted 6.45M stock options, including 3.45M options to officers and directors of the company. The options, which shall vest over a two-year period, are exercisable up to five years from the grant date and have a strike price of $0.51 (El Pinguico property, Guanajuato). 

ON RESOURCES AND DEVELOPMENT

  • Fabled Silver Gold Corp., release assay results of hole SM 20-06 from its ongoing 8,000m drilling program on its Santa Maria project at Chihuahua. Hole 6 intersected six silver bearing structures including five new mineralized north-south trending structures. It encountered 0.06 g/t Au and 49 g/t Ag (53 g/t AgEq) over 0.4m; 0.15 g/t Au and 45 g/t Ag (53 g/t AgEq) over 5.4m; 0.15 g/t Au and 43 g/t Ag (48 g/t AgEq) over 5.3m; and 0.15 g/t Au and 37 g/t Ag (45 g/t AgEq) over 14.7m, including 0.19 g/t Au and 55 g/t Ag (65 g/t AgEq) over 3m, including 0.2 g/t Au and 79 g/t Ag (89 g/t AgEq) over 0.9m. Fabled has completed drill holes SM 20-07 – 09 for a total of 2,134 meters of the ongoing 8,000 meter drilled program completed to date. Holes SM20-07 – 09 have been sampled and submitted to lab for analysis.  Hole SM 20-10 is in progress. 
  • Golden Minerals Company announced expansion drilling at its Rodeo project in Durango. The drill program will consist of 2,000m to test targets adjacent to the current pit with the aim to extend the life of the Rodeo mine well beyond the currently estimated life around 2.5 years.
  • GR Silver Mining Ltd., released assay results from the current core drilling program from its Plomosas property in Sinaloa.  The most significant drill interception was encountered in hole PL121-107 with a shallower intercept of 63 g/t Ag, 0.03 g/t Au, 0.1% Pb, and 0.1% Zn (73 g/t AgEq) over a true width (TW) of 12.9m, including 126 g/t Ag, 0.03 g/t Au, and 0.1% Zn (132 g/t AgEq) over a TW of 4.8m, and a deeper intercept of 377 g/t Ag, 0.23 g/t Au, 0.7% Pb, and 1.5% Zn (466 g/t AgEq) over a TW of 13.5m, including 633 g/t Ag, 0.2 g/t Au, 0.9% Pb, and 1.5% Zn (726 g7t AgEq) over a TW of 4.5m, including 1,987 g/t Ag, 0.58 g/t Au, 1.9% Pb, and 4% Zn (2,218 g/t AgEq) over a TW of 1m.
  • Orla Mining Ltd., provided an update on the construction of its Camino Rojo mine operation in Zacatecas. Orla reported that 94% of the detailed engineering is competed and 93% of the project purchase orders have been made. “Current construction activities include earthworks, installation of the camp and offices, drilling of back-up water wells and site fence erection. Process pond and reclaim tunnel areas are being excavated and foundations are being prepared for the Merrill Crowe plant, crusher, camp, as well as ancillary buildings. The 33-kV power line to site was approved by the Mexican federal electricity commission in 2020 and construction is currently 73% complete. Fabrication of crushing, conveying, and stacking equipment and the Merrill Crowe plant remain on schedule. Process plant equipment began arriving on site in the fourth quarter of 2020. Deliveries thus far include crushing, stacking, conveying equipment and the Merrill Crowe plant as well as heap leach and solution ponds piping and liners”.
  • Sonoro Gold Corp., reported results from 20 RC holes totalling 1,792m drilled at Buena Suerte and Japoneses zones within its flagship property Cerro Caliche in Sonora. Highlights from Buena Suerte area include hole SCR-201 with 0.74 g/t Au over 14m, including 2.09 g/t Au over 1.52m; hole SCR-203 with 0.71 g/t Au over 9m, including 2.04 g/t Au over 1.53m; hole SCR-205 with 0.59 g/t Au over 14m, including 1.53 g/t Au over 1.53m: hole SCR-207 with 0.62 g/t Au over 5m, including 1.3 g/t Au over 1.52m; hole SCR-209 with 0.77 g/t Au over 57m, including 1.79 g/t Au over 1.53m; hole SCR-211 with 4.77 g/t Au over 5m; and hole SCR-219 with 1.43 g/t Au over 16.76m, including 6.47 g/t Au over 1.52m. Highlights from Japoneses area include hole SCR-204 with 1.35 g/t Au over 10.67m, including 6.33 g/t Au over 1.53m; hole SCR-214 with 0.58 g/t Au over 18.29m, including 1.97 g/t Au over 1.52m;  hole SCR-215 with 0.52 g/t Au over 12.2m, hole SCR-218 with 0.5 g/t Au over 22.86m, including 1.95 g/t Au over 1.52m; and hole SCR-220 with 0.53 g/t Au over 22.86m, including 1.84 g/t Au over 1.53m. “Spacing between the Buena Suerte and Japoneses zones has been reduced to approximately 100 meters in the northern extensions indicating the zones may merge with further infill drilling”.
  • Torex Gold Resources Inc., announced results from the 2020 infill drilling program at its Media Luna property in Guerrero. Aim of the infill drilling program is to upgrade the inferred mineral resources to the indicated category. Highlights include hole ML20-407D with 6.16 g/t Au, 79 g/t Ag, and 3.58% Cu (12.73 g/t AuEq) over a true width (TW) of 13.66m; hole ML20-417D with 11.25 g/t Au, 12 g/t Ag, and 0.64% Cu (12.4 g/t AuEq) over a TW of 11.92M; hole ML20-418D with 5.45 g/t Au, 43 g/t Ag, and 2.48% Cu (9.84 g/t AuEq) over a TW of 22.47m; hole ML20-433D with 9.37 g/t Au, 190 g/t Ag, and 6.6% Cu (22.05 g/t AuEq) over a TW of 14.59m; hole ML20-443D with 9.88 g/t Au, 44 g/t Ag, and 1.72% Cu (13.11 g/t AuEq) over a TW of 13.68m; hole ML20-454D with 9.16 g/t Au, 9 g/t Ag, and 0.85% Cu (10.6 g/t AuEq) over a TW of 16.57m; hole ML20-458D with 5.9 g/t Au, 8.7 g/t Ag, and 0.7% Cu (7.11 g/t AuEq) over a TW of 25.47m; and hole ML20-492DA with 25.46 g/t Au, 36 g/t Ag, and 0.83% Cu (27.21 g/t AuEq) over a TW of 22.95m. The infill drilling conducted to date has increased drill density in specific areas of the resource model to an approximate 30-metre spacing (from an approximate 100-metre spacing). The final, upgraded Mineral resource estimate for Media Luna, due for completion in Q1 2022, is expected to provide for a more robust mine plan in the upcoming Feasibility Study.
  • Zacatecas Silver Corp., reported results from the re-sampling of drill core from its Panuco property in Zacatecas being undertake with regards to the resource confirmation process.  A 57 kg sample composite of historic Panuco drill core from one of the higher grade shoots has assayed higher than the grade described in the historic resource, with the sample returning assays of 198 g/t AgEq. (146 g/t Ag, 0.30 g/t Au, 0.13% Zn, and 0.42 % Pb). In addition, a 100Kg composite sample of drill core used in the Panuco resource estimation was sent to the lab for benchmark metallurgical work. Panuco has an historic inferred mineral resource of 19,472,901 Oz AgEq (cut-off 100 g/t AgEq.) from 3,954,729 tonnes at 153 g/t AgEq (136 g/t Ag, 0.14 g/t Au, 0.012% Pb, 0.11% Zn).

ON DEALS AND CORPORATE ISSUES

  • Agnico Eagle Mines Limited announced the appointment of a new member to its Board of Directors (Pinos Altos mine, Chihuahua).
  • Chesapeake Gold Corp., announced the resignation of its Director (Metates property, Durango).
  • GoGold Resources Inc., presented results from its annual general meeting of shareholders (Los Ricos project, Jalisco).
  • Inomin Mines Inc., completed the 100% acquisition of the La Gitana and the Peña Blanca properties in Oaxaca from Gunpoint Exploration Ltd, by exchanging 1M common shares of the Company, $25K cash, and the grant of a 1.5% NSR payable to Gunpoint on the Pena Blanca property (with an option for Inomin to purchase 0.5% of the NSR at any time for $1M). La Gitana is subject to an existing 3% NSR to a third-party which will be assumed by Inomin.
  • Orogen Royalties Inc., appointed a new member to its Board of Directors (El Ermitaño, Sonora).
  • Telson Mining Corporation engaged RB Milestone Group LLC for twelve months to provide corporate communications advisory, non-deal roadshow advisory, market intelligence advisory, and business referrals to the management team of the company (Tahuehueto project, Durango).

ON SOCIAL RESPONSIBILITY

  • AIMMGM Sonora District Ladies Committee sent 790 kilos of plastic caps to the association “Banco de Tapitas”, so that the material is recycled and the proceeds are donated to minors suffering from cancer. Banco de Tapitas A.C. operates throughout Mexico on a non-profit basis, collecting plastic caps to recycle them and generate resources to fund treatments, transfers, medicine and comprehensive support mainly for children with cancer, although it extends its help to people up to 21 years of age.
  • Peñasquito mine (Newmont) awarded scholarships to students of the Ignacio López Rayón elementary school. One of the most important achievements for this school, which has 23 students in the Regular Education Support Unit (three of them with a motor disability), is the construction of two functional ramps for those with this type of disability. One was installed at the entrance of the school and one more within the facilities, so that these students can move freely in their place of study and have autonomy in this space.

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, an outcropping Orogenic Au vein in a project in Sonora, Mexico.  Photo by Miguel A Heredia.

The Mining and Exploration News in Mexico; Highlights on the Third Week of March, 2021

By Jorge Cirett

During the 11h week of the year (March 15th to March 21st, 2021), at least 34 press releases were announced by companies working in Mexico. To note, eight companies posted exploration advances on their properties, four presented quarterly results, five posted on financing or share options (including C$12 M, $10.3 M, C$14.1 M and C$80.4M), eight more on project development and five on corporate issues. ON MEXICO ISSUES, 25 Mining projects in Mexico are in line for 2028. At PDAC, a minister from Canada asked for a stable and predictable business environment in Mexico. The president of Mexico, Andres Manuel Lopez Obrador, threatened mining companies with voiding their concessions if they break the law. ON EXPLORATION, in Baja California, One World Lithium announced the incoming drilling at its Salar del Diablo project. In Sonora, Kootenay Silver informed of excellent grades in trenching at its Maria Elena project; Tocvan Ventures updated on exploration at Pilar; Prismo Metals filed a technical report for Los Pavitos project. In Durango, Mithril Resources informed on a high-grade gold intercept at Copalquin. In Guerrero, Pantera Silver commenced exploration in Nuevo Taxco. In Zacatecas, Zacatecas Silver is preparing a resource estimate on the Panuco deposit.  ON MINING, Comet Resources Excellon Resources, Starcore International and Sierra Metals released quarterly and/or full year 2020 reports. Activities at McEwen’s El Gallo mine in Sinaloa, which is in residual leaching, were suspended by an illegal blockade. ON FINANCING, Empress Royalty, Southern Silver, Almaden Minerals, Santacruz Silver Mining and Premier Gold released news on financing. ON RESOURCES AND DEVELOPMENT, Almaden Minerals is resuming exploration at the Ixtaca property in Puebla. Discovery Metals released drilling results from Cordero in Chihuahua. Chesapeake Gold received approval for a bulk drilling program at Metates, Durango. GoGold Resources released drilling results from Los Ricos North in Jalisco. Southern Silver is doubling the size of its drilling program at Cerro Las Minitas in Durango. Consolidated Zinc released the updated mineral resource for the Plomosas mine in Chihuahua. Prime Mining released drilling results for Los Reyes in Sinaloa. Azucar Minerals released results from drilling at El Cobre, Veracruz. ON DEALS AND CORPORATE ISSUES, Radius Gold optioned the Maricela property in Sonora. Sailfish is to prepare an updated mineral resource for Gavilanes in Durango. VanGold Mining signed the definitive agreement with Endeavour Silver for the acquiring the El Cubo mine in Guanajuato. Tarachi Gold completed the acquisition of El Magistral tailings project. Prospero Silver is changing name to Keon Capital. ON SOCIAL RESPONSIBILITY, Grupo Mexico and Fresnillo PLC informed on actions related to social betterment of communities near its operations.

ON MEXICO ISSUES

  • 25 Mining projects in Mexico are in line for 2028 with a total of US$7.8 B (US$7,800 M in Mexican notation). El Arco in Baja California (US$2,900 M), Media Luna in Guerrero (US$496 M), Expansion Herradura (US$490 M), Orysivo in Chihuahua (US$465 M), Juanicipio in Zacatecas (US$440 M) and Sonora Lithium (US$420 M) are among the largest of these.   
  • At the virtual PDAC (Prospectors and Developers Association of Canada) 2021 conference Mary Ng, Minister of Small Business, Export Promotion and International Trade for Canada and Tatiana Clouthier, head of the Economy Secretariat in Mexico met and spoke about the strengthening of commercial ties between the two countries, particularly in the energy and mining sectors. Minister Ng stressed the need to keep a stable and predictable business environment for Canadian companies working in Mexico, especially in mining, and expressed its worries for the recently approved energy law and its possible negative impact.
  • In his press conference the president highlighted the cases of Americas Gold and Silver, with his view that it is trying to evade the law on unionized work, and that of First Majestic which he accused of trying to evade taxes (as in other industries, the president disregards any effect on investment and employment by his rigid stance). He suggested the Canadian government should help make the companies comply as in Canada.

ON EXPLORATION

  • Pantera Silver Corp. has mobilized its field personnel to the Nuevo Taxco Silver project in Guerrero. The 1,100 hectares project displays 21 veins 150-350 meters in length within a 135 hectares portion of the property. Of 395 historical samples, 119 grade over 100 gpt Ag, including 18 between 500-900 gpt Ag and three samples over 1,000 gpt Ag. An initial 1,600 meter program is to test the 21 veins area.
  • One World Lithium Inc. is to start phase three drilling on April 15, 2021 at is Salar del Diablo project in Baja California. “If the results of DDH-3 warrant, the DDH-4 will be drilled in the same area…. DDH-3 (diamond drill hole) is located approximately 50 kilometers to the south of DDH-2” completed on the previous campaign.
  • Zacatecas Silver Corp. is to prepare a current resource estimate for the Panuco silver deposit at the Zacatecas Silver project in Zacatecas. The historic inferred mineral resource hosts 3.95 M tonnes @ 136 gpt Ag, 0.14 gpt Au, 0.12% Pb, 0.11% Zn (153.2 gpt AgEq), containing 19.5 M Oz Ag. Re-assaying of 15% of the core intervals used in the historic resource calculation is being performed to assist in the new resource estimation, as well as bench scale metallurgical test of mineralized core material.    
  • Kootenay Silver Inc. informed on the discovery of significant gold at its Maria Elena project in Sonora. Highlighted results from sampling in 8 trenches comprise 33 m @ 2.67 gpt Au (including  9 m @ 5.29 gpt Au, 1 m @ 23.7 gpt Au) in trench 6; 24 m @ 1.81 gpt Au (including 8 m @ 3.98 gpt Au, 1 m @ 17.25 gpt Au) in trench 4; 9 m @ 2.01 gpt Au (including 1 m @ 15.45 gpt Au) in trench 2. “Gold mineralization is hosted by stock works of quartz and quartz carbonate veins formed by conjugate sets of veins …. Numerous conjugate vein sets and associated stock work zones occur within a 1.5 by 1.5-kilometer area hosted within a diorite intrusion and are the source of the placer gold historically mined on the property”.
  • Canasil Resources Inc. informed on drilling at La Esperanza project in Zacatecas. Three holes in the La Esperanza  vein have already intersected the vein as projected, while a fourth is in progress. While the vein outcrops for 150 m, it has now been intersected for 525 m along strike and 350 m to depth.
  • Tocvan Ventures Corp. updated on exploration at its Pilar project in Sonora. On the Main Zone Extension, a 350 m section presents “altered vein zones” 5 to 20 m in width, strong oxidation and 800 m of anomalous soil samples with up to 106 and 911 ppb Au, and rock grab samples with 9.3 gpt Au. At the 4-Trench there is a 600 m trend that presents veins for 400 m of strike untested by drilling, rock grab samples with up to 24 gpt Au and historical artisanal workings for 350 m of strike.
  • Mithril Resources Ltd. informed on the drilling at El Refugio target in the Copalquin project in Durango. An exceptional core length interval of 4.17 m @ 62.0 gpt Au, 445 gpt Ag was drilled, and is characterized by abundant black sulfide and kaolinite, as well as by the presence of visible gold.
  • Prismo Metals Inc. filed a NI 43-101 technical report for its Los Pavitos project in Sonora. The 5,289-hectare concession is west of the Alamos district, displaying epithermal low sulfidation veins and orogenic gold shears. Highlighted rock sample results include 0.30 m @ 40.8 gpt Au, 0.65 m @ 4.86 gpt Au, 0.20 m @ 1.57 gpt Au, 2.5 m @ 1.5 gpt Au, 2.5 m @ 2.41 gpt Au, grab samples of up to greater than 10.0 gpt Au and dump samples with up to 5.26 gpt Au.

ON MINING

  • Comet Resources Ltd. presented its second half 2020 financial report. In the period the company spent US$2.35 M in mineral exploration and administration, raised US$3 M, acquired the Santa Teresa project in Baja California with 88.6 K Oz Au JORC compliant inferred resources.
  • McEwen Mining Inc. informed that activities at the El Gallo project in Sinaloa (currently on residual leaching) have been suspended as results of an illegal blockade of the main access to the property by members of nearby communities. “El Gallo has operated harmoniously with the local communities since mining started in 2012, having demonstrated a long-standing track record of supporting local communities. In this context, the current situation is surprising. The site remains minimally staffed to maintain appropriate safety and security, and the environmental systems. McEwen Mining is negotiating for a peaceful resolution to the issues”.
  • Excellon Resources Inc. reported financial results for the Q4 and full year 2020. During the quarter silver production at the Platosa mine in Durango increased to 355.6 K Oz, the strongest production since 2014, at an all-sustaining cost of $21.19 per Oz Ag. For the year, the revenue of $26.2 M was impacted by the temporary suspension related to the Covid pandemic. On the second half of the year 43.3 K tonnes were mined, producing 1.08 M Oz Ag.
  • Starcore International Mines Ltd. reported results for the quarter ended in January 2021. At the San Martin mine in Queretaro, 57.3 K tonnes were milled @ 1.66 gpt Au, 23 gpt Ag, recovering 88.8% Au, 57.1% Ag, to produce 2.7 K Oz Au, 23.8 K Oz Ag or 3,063 Oz AuEq at cash cost US$1,042 per Oz AuEq and an AISC of US$1,361 per Oz AuEq.
  • Mexus Gold US. Informed it has received the necessary explosives permit to mine the high grade Mexus II and Julio vein structures at its Santa Elena mine in Sonora.
  • Sierra Metals Inc. reported financial results for 2020. At Bolivar in Chihuahua, cash cost per CuEq Lb was $1.35 and AISC per CuEqLb was $1.88. At Cusi in Chihuahua, cash cost per AgEqOz was $15.70 and AISC per AgEqOz was $28.18. The company hold cash and cash equivalents of $71.5 M at the end of the period.

ON FINANCING

  • Empress Royalty Corp. entered into an agreement with Red Cloud Securities Inc. and Canaccord Genuity Corp. and a syndicate of underwriters that shall purchase shares of the company for gross proceeds of C$12 M. (Pinos, Zacatecas).
  • Endeavour Silver Corp. announced its common shares will be added to the S&P/TSX Composite and the NYSE Arca Gold Miners Index (Terronera, Jalisco).
  • Southern Silver Exploration Corp. raised $14.2 million in Summer of 2020. “Since the closing of the equity raise and the working interest purchase in September 2020, the Company has received a total of $2,428,228 from shareholder exercises of share purchase warrants, inclusive of the recent 6,000,000 share purchase warrant exercise by Electrum Global Holdings LP for proceeds of $480,000. Additionally, the Company has received $477,470 from the exercise of incentive stock options and finders’ warrants”.
  • Almaden Minerals Ltd. announced a US$10.3 M registered direct offering (Ixtaca, Puebla).
  • Santacruz Silver Mining Ltd. has increased the size of its previously announced non-brokered private placement offering, intending to raise now up to CDN$14.1 M (Zimapan, Hidalgo).
  • Premier Gold Mines Ltd. announced its wholly-owned subsidiary i-80 Gold Corp. closed its previously publicized private placement for aggregate gross proceeds of C80.4 M. “Premier remains focused on creating i-80 as a Nevada-focused mining company…” (Mercedes, Sonora).
  • Minera Alamos Inc. informed the board of directors approved the issuance of 7.25 M options to management, directors, employees and consultants, tied to production milestones (Santana, Sonora).
  • First Majestic Silver Corp. received regulatory consent to extend its share repurchase program to up to 10 M shares or 4.5% of the outstanding shares of the company (San Dimas, Durango).

ON RESOURCES AND DEVELOPMENT

  • Almaden Minerals Ltd. has resumed exploration in the area of the Ixtaca project in Puebla. Initial work is to focus in identifying drill targets in the SE Alteration Zone, 1 km SE from the Ixtaca deposit. Argillic alteration with hyperspectral signatures for kaolinite, alunite and buddingtonite is present, along with several areas of veining with anomalous pathfinder elements.
  • Discovery Metals Corp. announced results from 14 diamond drill holes targeting high-grade veins at its Cordero project in Chihuahua. Highlighted intercepts comprise 1.3 m @ 1,581 gpt Ag, 0.15 gpt Au, 9.9% Pb, 5.4% Zn; 8.9 m @ 267 gpt Ag, 0.91 gpt Au, 0.9% Pb, 0.8% Zn (including 1.0 m @ 1,280 gpt Ag, 4.24 gpt Au, 1.6% Pb, 3.4% Zn); 1.3 m @ 1,607 gpt Ag, 2.06 gpt Au, 5.2% Pb, 8.0% Zn; 10.0 m @ 92 gpt Ag, 0.09 gpt Au, 2.4% Pb, 3.4% Zn in the Josefina vein; 2.9 m @ 992 gpt Ag, 0.73 gpt Au, 12.9% Pb, 2.4% Zn in the South corridor and 4.0m @ 377 gpt Ag, 0.28 gpt Au, 7.1% Pb, 2.7% Zn (including 1.4 m @ 552 gpt Ag, 0.33 gpt Au, 11.0% Pb, 3.4% Zn); 1.2 m @ 241 gpt Ag, 0.52 gpt Au, 4.6% Pb, 10.4% Zn; 2.8 m @ 207 gpt Ag, 0.15 gpt Au, 3.7% Pb, 7.7% Zn on the Todos Santos vein. “The Company has completed 58,600 m (148 holes) as part of its expanded 65,000 m Phase 1 drill program. Assays from 24 holes are pending”.
  • Chesapeake Gold Corp. has received the final permits to commence a bulk drilling program at the Metates project in Durango. The company plans to drill 2,500 meters to recover 10 tonnes of large diameter (PQ) core for metallurgical testing to support a potential sulfide heap leach mine operation.
  • GoGold Resources Inc. released results from four more drill holes on the Casados area of the Los Ricos North project in Jalisco. Highlighted core length results comprise 10.3 m @ 0.43 gpt Au, 116 gpt Ag; 21.4 m @ 0.44 gpt Au, 98 gpt Ag; 49.1 m @ 0.54 gpt Au, 250 gpt Ag; 13.3 m @ 0.67 gpt Au, 204 gpt Ag; 5.1 m @ 1.94 gpt Au, 1,270 gpt Ag (including 0.8 m @ 10.31 gpt Au, 6,842 gpt Ag; 52.0 m @ 0.47 gpt Au, 127 gpt Ag; 8.3 m @ 0.94 gpt Au, 279 gpt Ag; 23.6 m @ 0.58 gpt Au, 156 gpt Ag (including 10.9 m @ 1.05 gpt Au, 307 gpt Ag); 33.6 m @ 0.23 gpt Au, 95 gpt Ag. The Casados vein dips 45 degrees, is hosted in andesitic tuffs and is exposed for 400 m in the surface.
  • Southern Silver Exploration Corp. is doubling the size of the current drilling program from 10,000 m to 20,000 m on the Cerro Las Minitas project in Durango. The current program has completed 28 core holes totaling 12,040 m since September 2020. “Drilling will continue with two drills targeting the east side of the Cerro where to date three near-surface sulphide lenses with Bonanza-grades of silver have been identified”. Assays from 11 drill holes are pending.
  • Consolidated Zinc Ltd. announced its updated mineral resource for the Plomosas project in Chihuahua. The resource estimate is JORC compliant and contains indicated mineral resources of 152 K tonnes @ 13.3% Zn, 6.0% Pb, 33.6 gpt Ag containing 20.2 K tonnes Zn, 9.1 K tonnes Pb, 164.6 K Oz Ag and inferred resources of 788 K tonnes @ 13.0% Zn, 2.9% Pb, 17.2 gpt Ag containing 102.1 K tonnes Zn, 22.7 K tonnes Pb, 435.5 K Oz Ag.
  • Prime Mining Corp. reported initial results from its 15,000 m drilling program at Los Reyes, in Sinaloa. The first hole at Guadalupe East intersected 20.1 m @ 3.25 gpt Au, 380 gpt Ag (including 6.5 m @ 6.51 gpt Au, 587 gpt Ag), this intercept is 150 m below any previous drilling; 3.8 m @ 3.69 gpt Au, 305 gpt Ag (including 2.1 m @ 6.18 gpt Au, 507 gpt Ag). Chip sampling of adularia bearing banded quartz veins in a new area returned several mineralized intervals, including 3 m @ 29.8 gpt Au, 1,132 gpt Ag.
  • Azucar Minerals Ltd. released results from drilling at the Porvenir zone at the El Cobre project in Veracruz. Some of the highlighted results comprise 77.65 m @ 0.26 gpt Au, 0.16% Cu (including 43.55 m @ 0.37 gpt Au, 0.21% Cu and 25.55 m @ 0.45 gpt Au, 0.23% Cu) in one hole and 16.70 m @ 0.10 gpt Au, 0.09% Cu; 37.00 m @ 0.12 gpt Au, 0.08% Cu.

ON DEALS AND CORPORATE ISSUES

  • Radius Gold Inc. has optioned the Maricela group of properties (155 ha) in Sonora. Radius can earn 100% interest in the property by paying US$1.25 M over three years. A total of US$30 K has been paid to date. The owner retains a 1% NSR which can be bought back for US$1 M. Mineralization is of low sulfidation epithermal style with 1-3 m massive quartz veins and stockworks over 10 meters in width hosted in andesitic volcanic rocks and felsic dykes emplaced sub-parallel to mineralized structures.
  • Sailfish Royalty Corp. announced on early February “that Mine Development Associates (“MDA”), a division of RESPEC, out of Reno, Nevada, was hired to prepare an updated mineral resource estimate on Gavilanes. The updated mineral resource estimate is a key milestone for the planned spinout of Gavilanes and the Company is pleased to report that MDA is expecting to complete their work in early Q2 2021”.
  • VanGold Mining Corp. signed a definitive purchase agreement with Endeavour Silver Corp. to acquire El Cubo mine and mill complex located 8 km from its El Pinguico project in Guanajuato. “According to the Company’s recently announced PEA from Behre Dolbear and Company (USA) Inc., (“Behre”) the Combined Project contains total indicated resources of 718,655 tonnes grading 160 gpt Ag and 1.90 gpt Au, or 306 gpt AgEq, which equates to 7.2 M oz AgEq; and total inferred resources of 1,453,000 tonnes grading 214 gpt Ag and 2.78 gpt Au, or 435 gpt AgEq, which equates to 20.4 M oz AgEq”. VanGold will pay $15 M as follows: $500 K (paid), $7 M on closing, anticipated to by the end of March 2021, $5 M on VanGold shares on closing and $2.5 M in promissory notes due 12 months from closing.
  • Tarachi Gold Corp. completed the acquisition from Manto Resources S.A. de C.V. of the Magistral mill and tailings project in Durango. A PEA is to be conducted to determine if modifications are needed on the mill’s flowsheet prior to commissioning. The tailings basin is to be tested with an auger drill rig, with six confirmation holes and eleven in-fill holes. Underground diamond core drilling has been progressing on the Jabali concession at its Tarachi project in Sonora.
  • Prospero Silver Corp. board of directors has approved the name change of the company to Keon Capital Inc., subject to the acceptance of the TSX Venture Exchange (Bermudez, Chihuahua).

ON SOCIAL RESPONSIBILITY

  • Fundación Grupo México and Granjas Carroll delivered fruit bearing trees to producers in Puebla.
  • Minera San Julian donated medical equipment in Chihuahua.

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

On the image below:  Core from Azure Mineral’s Oposura project in Sonora. Picture by Jorge Cirett.

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

Stibiconite crystals

By Miguel A Heredia

During the fourth week of the year (January 25th to January 31st, 2021), at least 43 press releases were announced by companies working in Mexico and 9 news published by the media, with twelve informing on exploration results, ten disclosing deals and corporate issues, nine announcing financial rounds, seven reporting on resources and development of their mine operations, six commenting on Mexican issues, five  communicating production and financial results, and three discussing social issues.  ON MEXICO ISSUES, Odyssey has been notified that the First Memorial filed in September 2020 in its pending North American Free Trade Agreement (NAFTA) case against Mexico has now been published by the International Centre for Settlement of Investment Disputes (ICSID). Mexico is the mining market with the highest tax burden compared to Canada, Chile, Peru, and the United States.  Fernando Alanís, president of the Mining Chamber of Mexico (CAMIMEX) declared that Mexico captured USD $2.5 B of investment in the mining sector in 2020, its lowest level in the last 13 years.  Ministry of Economic Development and Labor of Guerrero State seeks to recover jobs at Minera Media Luna (Torex Gold). The Mining Chamber of Mexico (CAMIMEX) presented its first Sustainability Report 2020. Businessmen from the mining and energy sector joined in the proposal to put a limit on the participation of workers in company profits (PTU) and to link them to productivity. ON EXPLORATION, In Sonora, Carlyle and Riverside announced the start of its first drilling program by early February at its Cecilia project and Aztec Minerals and its JV partner Kootenay announced plans for a two-phase exploration program at its Cervantes project. In Chihuahua, Mammoth commenced its 2021 field exploration program at its Tenoriba project, Consolidated Zinc reported exploration results from Potrero and Don Lucas targets, and Golden Minerals discovered new vein at its Yoquivo project. In Sinaloa, Vizsla released drill results from eighth holes collared at the Papayo prospect at its Panuco project, and Mithril provided an update on the exploration activities performed during the period Q4, 2020 at its Copalquin project.  In Jalisco, GoGold announced a new discovery at El Orito in its Los Ricos North project. In Veracruz, Azucar Minerals provided an update on drilling activities at its El Cobre project.  ON MINING, Consolidated Zinc reported Q4, 2020 production results from its Plomosas mine in Chihuahua. Endeavour reported 2021 production and cost guidance for their Mexican operations. Fresnillo plc reported Q4, 2020 from their Mexican operations. Gold Resource announced Q4, and full year 2020 production results from its Oaxaca Mining Unit in Oaxaca. Mag Silver reported Q4, 2020 production results from its Juanicipio project in Zacatecas.  ON FINANCING, Argonaut announced a $23M bought-deal public offering (El Castillo mine, Durango). VanGold increased its previously announced non-brokered private placement financing to $14.55M (El Pinguico project, Guanajuato).  Americas Gold and Silver closed its previously announced bought deal financing for aggregate gross proceeds of CAD $33.9M (Cosala mine, Sinaloa). Gainey announced that it has arranged a non brokered private placement for gross proceeds of up to CAD $500K (El Colomo, Nayarit). Mithril raised A $5M through a share placement (Copalquin project, Durango).  Elementals Royalties announced that its common shares are now eligible for electronic clearing and settlement (Mercedes mine, Sonora). Gold Resource declared January 2021 monthly dividend (Oaxaca Mining Unit, Oaxaca). Ridgestone closed the remaining tranche of its previously announced non-broken private placement for gross proceeds of $695K (Rebeico project, Sonora). ON RESOURCES AND DEVELOPMENT, Fabled presented initial diamond drill results from its Santa Maria project in Chihuahua. Capstone announced an updated technical report for its Cozamin mine in Zacatecas. Comet provided an updated Q4, 2020 activities report (Santa Teresa project, Baja California).  Oroco reported significant 3D IP survey results at its Santo Tomas project in Sinaloa. VanGold commenced a 12-14 drill holes program at its Pinguico project in Guanajuato. Minera Alamos provided a construction update at its Santana project in Sonora.   Great Panther announced an update on exploration strategy and programs for 2021 (Topia mine, Durango).  ON DEALS AND CORPORATE ISSUES, Mexican Gold engaged JDS Energy & Mining Inc., for a PEA at its Las Minas project in Veracruz. Canuc doubled its land position at San Javier project in Sonora. Magna Gold appointed its new CFO (San Francisco mine, Sonora). Defiance Silver entered into an option agreement to double its land position at its Tepal project in Michoacan. Vizsla announced strengthening of its senior management team and board (Panuco project, Sinaloa). First Majestic responded to market activity (San Dimas property, Durango). Mexican Gold appointed two new members as technical advisors (Las Minas project, Veracruz). Discovery Metals named to the 2021 OTCQX Best 50 (Cordero project, Chihuahua). Gainey provided an update on its Mexican projects and corporate activities (El Colomo project, Nayarit). Orex announced board changes and a grant of options (Sandra project, Durango). Magna Gold provided a letter to all of its shareholders in which it explained the strategy used to grow the company through strategic acquisitions and targeted exploration to evolve from a junior exploration company to an intermediate gold producer in Mexico (San Francisco mine, Sonora).  ON SOCIAL RESPONSIBILITY, Fresnillo plc strengthens education in times of pandemic. Peñoles reaffirms its commitment to promoting education through the implementation of academic programs that seek to develop skills and tools so that children and young people in Mexico aspire to a better future. The companies Autlán, Grupo México, Industrias Peñoles, Newmont-Peñasquito, Fresnillo plc and Coeur Mining participate in water management projects that were highlighted by the Mexican Mining Chamber (CAMIMEX) in its 2020 sustainability report.

ON MEXICO ISSUES

  • Odyssey Marine Exploration Inc., has been notified that the First Memorial filed in September 2020 in its pending North American Free Trade Agreement (NAFTA) case against Mexico has now been published by the International Centre for Settlement of Investment Disputes (ICSID). The $2.3 billion claim against Mexico under NAFTA relates to the unlawful denial of the environmental permit for subsidiary Exploraciones Oceanicas’ (ExO’s) offshore phosphate project.
  • Mexico is the mining market with the highest tax burden compared to Canada, Chile, Peru, and the United States, the main competing countries on the continent in terms of mining, according to the Mexican Mining Chamber (CAMIMEX). Mining faces heavy tax burden making the sector less competitive. 
  • Fernando Alanís, president of the Mining Chamber of Mexico (CAMIMEX) declared that Mexico captured USD $2.5 B of investment in the mining sector in 2020, its lowest level in the last 13 years. Mexico is a mining power globally. In 2019 it ranked among the top 10 positions in the world production of 17 minerals, including first in silver, second in fluorite, third in celestite and wollastonite, sixth in zinc, seventh in salt, eighth copper and ninth in gold, among others. Mining stands out as an activity that generates jobs, investments, foreign exchange, infrastructure, regional value chains, local consumption and contribution to social development. In 2019, the mining-metallurgical Gross Domestic Product (GDP) represented 8.1% of the industrial GDP and 2.3% of the national GDP.
  • Ministry of Economic Development and Labor of Guerrero state seeks to recover jobs at Minera Media Luna. The investment of USD $500M in the mining activity by Torex Gold in the municipality of Cocula, the creation of commercialization spaces through virtual stores on the Mercado Libre platform and the linking of credit institutions with small and Guerrerenses micro companies are some of the strategies that are implemented to recover more than 15 thousand formal jobs that were lost during 2020 in Guerrero.
  • The Mining Chamber of Mexico (CAMIMEX) presented its first Sustainability Report 2020. The publication is divided into three chapters, corresponding to good practices in mining in the social, environmental and economic spheres. Highlighted that the companies affiliated to CAMIMEX represent 90% of the value of the industry, and have a presence in 696 communities, in 24 states of the Mexican Republic. Regarding the regulations to which mining projects are subject to operate, mentioned a total of 1,077 rules, laws, norms, guidelines and agreements, in matters of labor competition, health, environment, fiscal, agrarian, etc. regarding some of the taxes paid by the mining, Fernando Alanís indicated that in 2019 a total of MXP $39,017M was contributed, for concepts such as ISR, surface rights, and new rights, and that the amount rose to MXP $ 131,016M in a period of four years. In 2019, mining companies invested MXP $ 1,056M in social development (in addition to the MXP $3,496M raised that year for the Mining Fund), managing to directly benefit more than one and a half million people.
  • Businessmen from the mining and energy sector joined in the proposal to put a limit on the participation of workers in company profits (PTU) and to link them to productivity. Fernando Alanís Ortega, president of the Mining Chamber of Mexico, highlighted that “continuing to manage PTU as a percentage of profit is essentially to consider it as if it would be an additional tax burden and it reduces our competitiveness. ”He proposed“to find how to relate the PTU to productivity factors”, so that it is the result of the effort and not of metal prices, as is currently the case.

ON EXPLORATION

  • Carlyle Commodities Corp. and Riverside Resources Inc., announced the start of its first drilling program by early February at its Cecilia project. Riverside as operator of the JV has designed six holes to test the un-drilled San Jose structure on the Cerro Magallanes where rock sampling returned up to 48.3 g/t Au over 0.75m. The San Jose target is one of the five major targets identified at the Cerro Magallanes rhyolitic dome.
  • Aztec Minerals Corp., and its JV partner Kootenay Silver Inc, announced plans for a CAD $1.3M, two-phase exploration program at its Cervantes project in Sonora. The JV plans to start a phase 1, CAD $85K program of soil and rock sampling and geological mapping during Q1, 2021 to extend the 100m by 100m geological and geochemical grid to the north, west and east boundaries of the property, and subject to phase 1 results and available funds, initiate a phase 2, CAD $1.05M drill program in Q3, 2021 consisting of 5,000m RC program in 22 holes, to test four main target: California, California North, Jasper, and Purisima East.
  • Vizsla Resources Corp., released drill results from eighth holes collared at the Papayo prospect at its Panuco project in Sinaloa. These drill results have expanded the Papayo zone over 120m o the south where it remains open. Significant drill intercepts were encountered in hole NP-20-50 with 198 g/t Ag, 0.96 g/t Au, 1.4% Pb, and 4.5% Zn (413 g/t AgEq) over 1.91m of true width (TW), including 478 g/t Ag, 2.19 g/t Au, 3.7% Pb, and 11.7% Zn (1,009 g/t AgEq) over a TW of 0.69m, and hole NP-20-36 with 144 g/t Ag, 1.21 g/t Au, 0.7% Pb, and 2.4% Zn (321 g/t AgEq) over a TW of 2.46m. 
  • Mithril Resources Ltd., provided an update on the exploration activities performed during the period Q4, 2020 at its Copalquin project in Sinaloa. The company informed that it has completed its maiden drill program of 7,188m of diamond core drilling. Results of the drilling confirmed that El Refugio-El Comets target is part of a large gold-silver epithermal system characterized by extensive surface alteration and rhyolite dome intrusions. The very high grade La Soledad and Leon veins intercepted at the start of the program are also part of this larger epithermal system. Drilling extension at depth and along strike is a key feature of the exploration for 2021.
  • Mammoth Resources Corp., commenced its 2021 field exploration program at its Tenoriba project. The company is currently installing the grid for the infill IP/Mag geophysics survey which is expected to begin in early-mid February. This geophysics survey will assist in 3D modeling of surface and subsurface features to generate drill hole locations and design a drill program scheduled to commence towards the end of the current quarter.
  • Consolidated Zinc Ltd., reported exploration results from the Potrero and Don Lucas targets during Q4, 2020. The company continued the regional mapping and sampling of the mineralized structures identified previously. A total of 67 samples were taken of which 48 samples collected at Potreros- Don Lucas targets returned discouraging results downgrading the prospectivity for economic gold mineralization. Results from 19 samples, including 10 from the Enrique and La Chona areas remain pending and will be released once they are available.
  • Golden Minerals Company, announced results from its recent 3,400m, 15-hole drill campaign and discovered new vein at its Yoquivo project in Chihuahua. Significant drill intercepts were encountered in hole YQ-20-001 collared at Pertenencia Vein with 2.34 g/t Au and 190 g/t Ag (364 g/t AgEq) over 4.2m, including 5.69 g/t Au and 223 g/t Ag (650 g/t AgEq) over 1.3m; hole YQ-20-002 collared at Pertenencia Vein with 0.45 g/t Au and 150 g/t Ag (184 g/t AgEq) over 1.9m, including 1.14 g/t Au and 423 g/t Ag (509 g/t AgEq) over 0.6m; hole YQ-20-006 collared at Esperanza Vein with 1.77 g/t Au and 49 g/t Ag (190 g/t AgEq) over 3.6m, including 5 g/t Au and 118 g/t Ag (524 g/t AgEq) over 1m; hole YQ-20-010 collared at New Vein with 1.9 g/t Au and 135 g/t Ag (278 g/t AgEq) over 5.4m, including 15.4 g/t Au and 1,150 g/t Ag (2,305 g/t AgEq) over 0.2m; and hole YQ-20-011 collared at New Vein with 1.3 g/t Au and 225 g/t Ag (323 g/t AgEq) over 12.3m, including 4.2 g/t Au and 734 g/t Ag (1,049 g/t AgEq) over 3m. The company plans to follow with a second phase drill program which could start in the next few months.
  • GoGold Resources Inc., released results from six initials drill holes and announced a new discovery at El Orito in its Los Ricos North project in Jalisco. Significant drill intercepts were encountered in hole LRGO-20-002 with 76 g/t Ag, 0.06 g/t Au, 0.16% Cu, 3% Pb, and 0.14% Zn (171 g/t AgEq) over 63.4m, including 170 g/t Ag, 0.1 g/t Au, 0.29% Cu, 7.5% Pb, and 0.07% Zn (384 g/t AgEq) over 23m, including 267 g/t Ag, 0.23 g/t Au, 0.22% Cu, 11.5% Pb, and 0.07% Zn (579 g/t AgEq) over 5.3m, including 320 g/t Ag, 0.11 g/t Au, 0.15% Cu, 14.4% Pb, and 0.08% Zn (686 g/t AgEq) over 6.7m; and hole LRGO-20-005 with 49 g/t Ag, 0.05 g/t Au, 0.45% Cu, 3% Pb, and 4.7% Zn (323 g/t AgEq) over 43m, including 85 g/t Ag, 0.11 g/t Au, 0.83% Cu, 4.8% Pb, and 7.6% Zn (538 g/t AgEq) over 14.3m. The known strike length of the El Orito – El Favor structure is now approaching 2,500m and is still open in both directions.
  • Azucar Minerals Ltd., provided an update on drilling activities at its El Cobre project in Veracruz. The company completed hole EC-20-108 at El Primo target, and announced that the deeper part intersected mostly propylitically altered intrusive rocks. Azucar also has moved the drill to Porvenir area and has completed two holes there and a third one is in progress. The company intends to continue exploration at the Primo, Porvenir, and Villa Rica targets in an effort to further delineate resource potential at the project beyond that contained in the initial Norte Zone resource estimate.

ON MINING

  • Consolidated Zinc Ltd., reported Q4, 2020 production and financial results from its Plomosas mine in Chihuahua. The company mined 7,910 tonnes with a further 2,891 tonnes mined and stockpiled underground due to poor haul truck availability for a total of 10801 tonnes grading 14.5% Zn, 8% Pb, and 50 g/t Ag from which, 6,842 tonnes of 14.3% Zn, 8% Pb, and 50 g/t Ag were processed to produce 423 tonnes of Zn concentrate and 45 tonnes of Pb concentrate, at a cash cost of $1.02 per Lb Zn produced and a cash cost of $1.05 per Lb Zn sold.
  • Endeavour Silver Corp., reported 2021 production and cost guidance for its three silver-gold mines in Mexico, the Guanacevi mine in Durango, the Bolañitos mine in Guanajuato and the El Compas mine in Zacatecas. The table below shows 2021 production and cost guidance for their Mexican operations:
  • Fresnillo plc reported Q4, 2020 from their Mexican operations. At Fresnillo mine, Zacatecas, the company processed 590,499 tonnes of 190 g/t Ag, 0.71 g/t Au, 1.1% Pb, and 2.2% Zn to produce 3.2M Oz Ag, 9,485 Oz Au, 11.58M Lb Pb, and 19.95M Lb Zn. At Saucito mine, Zacatecas, the company processed 671,429 tonnes of 195 g/t Ag, 1.4 g/t Au, 1.65% Pb, and 2.95% Zn to produce 3.4M Oz Ag, 23.2K Oz Au, 20.6M Lb Pb, and 30.95M Lb Zn. At its Pyrite Plant, Fresnillo processed 47,860 tonnes of 172 g/t Ag and 1.64 g/t Au to produce 194K Oz Ag and 820 Oz Au. At Cienega mine, Durango, Fresnillo processed 334,977 tonnes of 1.36 g/t Au, 139 g/t Ag, 0.6% Pb, and 1.1% Zn to produce 13.6K Oz Au, 1.3M Oz Ag, 2.95M Lb Pb, and 4.58M Lb Zn. At San Julian mine (Veins), Chihuahua-Durango border, the company processed 315,863 tonnes of 1.58 g/t Au and 103 g/t Ag to produce 15.1K Oz Au and 965K Oz Ag, while at San Julian mine (Disseminated Ore Body) it processed 572,962 tonnes of 0.09 g/t Au, 172 g/t Ag, 0.5% Pb, and 1.3% Zn to produce 925 Oz Au, 2.76M Oz Ag, 4.49M Lb Pb, and 12.95M Lb Zn. At Herradura mine, Sonora, the company processed 6,875,196 of 0.76 g/t Au and 1.5 g/t Ag to produce 134.4K Oz Au and 231K Oz Ag. At Noche Buena mine, Sonora, Fresnillo processed 1,638,305 tonnes of 0.5 g/t Au and 0.84 g/t Ag to produce 17.7K Oz Au and 9K Oz Ag.
  • Gold Resource Corporation, announced Q4, and full year 2020 production results from its Oaxaca Mining Unit in Oaxaca.  The company produced in Q4, 2020 a total of 6,854 Oz Au and 276.9K Oz Ag for a full year production during 2020 of 20,473 Oz Au and 1.19M Oz Ag. Preliminary annual base metal production included approximately 3.5M Lb Cu, 17M Lb Pb, and 43.4M Lb Zn.
  • Mag Silver Corp., reported Q4, 2020 production results from its Juanicipio project in Zacatecas. The company processed 30,397 tonnes to produce 230K Oz Ag and 443 Oz Au.

ON FINANCING

  • Argonaut Gold Inc., announced a $23M bought-deal public offering of flow-through common shares (El Castillo mine, Durango).
  • VanGold Mining Corp., increased its previously announced non-brokered private placement financing to $14.55M (El Pinguico project, Guanajuato). 
  • Americas Gold and Silver Corporation closed its previously announced bought deal financing for aggregate gross proceeds of CAD $33.9M. Part of the gross proceeds will be used for care and maintenance at the company´s Cosala operation mine in Sinaloa, as well as for general corporate and administrative expenses, repayment of outstanding debt obligations, and working capital.
  • Gainey Capital Corp., announced that it has arranged a non brokered private placement for gross proceeds of up to CAD $500K. The company plans to use the gross proceeds for due diligence on potential mineral concessions the company is currently looking, as well as for general working capital (El Colomo, Nayarit). 
  • Mithril Resources Ltd., raised A $5M through a share placement.   Now, the company is fully funded to continue the drilling program of over 10,000m at its Copalquin project in Durango.
  • Elementals Royalties Corp., announced that its common shares are now eligible for electronic clearing and settlement through the Depository Trust Company. Elemental’s common shares will continue to trade under the ticker symbol “ELEMF” on the OTC Markets. (Mercedes mine, Sonora).
  • Gold Resource Corporation declared its monthly dividend of one-third of a cent per common share for January 2021 payable on February 23, 2021 to shareholders (Oaxaca Mining Unit, Oaxaca).
  • Ridgestone Mining Inc., closed the last tranche of its previously announced non-broken private placement for gross proceeds of $695K (Rebeico project, Sonora).

ON RESOURCES AND DEVELOPMENT

  • Fabled Silver Gold Corp., presented initial diamond drill results from the ongoing 8,000m drill program to be performed at its Santa Maria project in Chihuahua. The company has completed four holes for a total of 1,017m. Assays are still pending for holes SM 2020-02 to SM 2020-04 and the fifth holes is in progress.  The first hole (SM 2020-01) returned significant results with 0.18 g/t Au and 44 g/t Ag over 68.6m, including 0.35 g/t Au and 106 g/t Ag over 20m, including 0.27 g/t Au and 146 g/t Ag over 2m, including 1.09 g/t Au and 238 g/t Ag over 1.60m, and including 0.34 g/t Au and 151 g/t Ag over 1.90m.
  • Capstone Mining Corp., announced an updated technical report for its Cozamin mine in Zacatecas, and extends mine life to 2031. Proven + probable mineral reserves increased by 39% to 14.1M tonnes grading 1.77% Cu, 44 g/t Ag, 0.54% Zn, and 0.21% Pb for a total of 551.16M Lb Cu, 20.18M Oz Ag, 169.76M Lb Zn, and 63.9M Lb Pb contained, and measured and indicated mineral resources increased by 10% to 29.7M tonnes of grading 1.52% Cu, 44 g/t Ag, 1.1% Zn, and 0.32% Pb for a total of 994.28M Lb Cu, 41.5M Oz Ag, 720.9M Lb Zn, and 209.4M Lb Pb contained, and inferred resources of 13.87M tonnes grading 0.54% Cu, 39 g/t Ag, 2.23% Zn, and 0.74% Pb for a total of 165.34M Lb Cu, 17.4M Oz Ag, 681.2M Lb Zn, and 227.1M Lb Pb contained. The new reserve mine plan is projected to produce 512M Lb Cu and 16M Oz Ag over the next 10 years.
  • Comet Resources Limited, provided the Q4, 2020 activities report. The company was focused on setting up a field office as well as on the engagement of local geological consultants to move towards its initial drilling program in 2021. Comet completed a field mapping and sampling program in Q4, 2020, to support planning for and locations of initial drilling program. The plan is to get drill permits in Q1, 2021 and begins the initial drilling program by late in Q1, or early Q2, 2021. As announced on October 13, 2020, the JORC inferred mineral resource estimate for the Santa Teresa project was for 369K tonnes of 7.47 g/t Au for a total of 88.6K Oz Au contained.
  • Oroco Resource Corp.,  reported significant 3D IP survey results at its Santo Tomas project in Sinaloa. The survey is now approximately 80% complete, and Oroco has received preliminary inversion data for all stations surveyed to date.  The preliminary inversion model has successfully mapped the resistivity and chargeability characteristics along a swath 2.1km wide by 4.3 km along strike over the South Zone, North Zone and part of the Brasiles Zone.
  • VanGold Mining Corp., commenced a 12-14 drill holes program and will be conducted underground, within old workings at the historic El Pinguico mine in Guanajuato.
  • Minera Alamos Inc., provided a construction update at its Santana project in Sonora as it advances toward the commencement of mining. The company reported that the leach solution ponds are now fully lined and ready for operations, the plant foundations have been completed and all previously fabricated plant structures have been delivered to site in preparation for final installation that is now underway, The majority of the civil works for the heap leach pad area have been completed and the installation of the pad liner has commenced this week, and the crushing system previously acquired for potential future expansions at Santana is in transit from the U.S. to the Company’s staging facilities in Ciudad Obregón, Sonora.
  • Great Panther Mining Limited announced an update on exploration strategy and programs for 2021 (Topia mine, Durango).  At San Ignacio, Guanajuato, Great Panther plans to perform a 5,000m in-fill surface drilling program along the Purisima veins south of the development of the San Pedro ramp, deeper in the Purisima / Purisima alto vein system and continue testing for Au-Ag mineralization along 1.1km of Purisima vein north from the old San Ignacio shaft.  At Guanajuato mine, Guanajuato, the company will continue the geological mapping and sampling in accessible parts of the historical mining areas(now, near to be completed) and will be followed by a 10,000m of underground drilling along the north side of Valenciana, between Valenciana and Cata, and in the Pozos , Promontorio, and Guanajuatito areas. At Topia mine, Durango,  5,000m of surface drilling are planned focused on defining new mineral resources in six areas along the strike and down-dip extents of present mining efforts.

ON DEALS AND CORPORATE ISSUES

  • Mexican Gold Mining Cop., engaged JDS Energy & Mining Inc., for a PEA at its Las Minas project in Veracruz. The PEA is expected to be completed in Q2, 2021.
  • Canuc Resources Corporation, doubled its land position at San Javier project in Sonora by signing a purchase agreement for five claims comprising 416.9 hectares. To date, Canuc has accumulated a ground position 833.1 contiguous hectares.
  • Magna Gold Corp., appointed its new CFO (San Francisco mine, Sonora).
  • Defiance Silver Corp., entered into an option agreement to acquire 1,915 hectares surrounding its Tepal project in Michoacan. As a result, Defiance has doubled its land position at the project.  The company has agreed to pay the annual concession fees until a production decision has been made, upon which Defiance will pay the vendor USD $2 M for 100% ownership of the mining concessions.
  • Vizsla Resources Corp., announced strengthening of its senior management team and board with the promotions of its Technical Director and VP of Technical Services, and the appointment of its Country Manager (Panuco project, Sinaloa).
  • First Majestic Silver Corp., confirmed that it is not aware of any material, undisclosed information related to the Company that would account for the recent increase in the market price and level of trading volume of its ordinary shares (San Dimas property, Durango).
  • Mexican Gold Mining Corp., appointed two new members as technical advisors to assist the company as it moves Las Minas project, Veracruz towards a PEA.
  • Discovery Metals Corp., named to the 2021 OTCQX Best 50, a ranking of top performing companies traded on the OTCQX Best Market last year.  (Cordero project, Chihuahua).
  • Gainey Capital Corp., provided an update on its Mexican projects and corporate activities. The company took the decision to not continue with the option on the Las Margaritas project in Durango. The El Colomo project, Nayarit will continue to be the flagship project of the company.
  • Orex Minerals Inc., announced the resignation of one member of the board and the appointment of its new Director. Orex also granted 3.55M incentive stock options to directors, officers, and consultants (Sandra project, Durango).
  • Magna Gold Corp., provided a letter to all of its shareholders in which it explained the strategy used to grow the company through strategic acquisitions and targeted exploration to evolve from a junior exploration company to an intermediate gold producer in Mexico. Since the Company’s inception in 2017, it has returned 10x to the Company’s shareholders (San Francisco mine, Sonora).

ON SOCIAL RESPONSIBILITY

  • Fresnillo plc strengthens education in times of pandemic. Fresnillo plc has joined efforts in favor of education, training and development for the lives of thousands of young people, to boost their professional, economic and social growth.
  • Peñoles reaffirms its commitment to promoting education through the implementation of academic programs that seek to develop skills and tools so that children and young people in Mexico aspire to a better future. Peñoles has academic initiatives with a focus on reading, science, technology, human development, sports and culture for different educational levels.
  • The companies Autlán, Grupo México, Industrias Peñoles, Newmont-Peñasquito, Fresnillo plc and Coeur Mining participate in water management projects that were highlighted by the Mexican Mining Chamber (CAMIMEX) in its 2020 sustainability report.

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, stibiconite in a low sulphidation epithermal system in a prospect in Durango, Mexico.  Photo by Miguel A Heredia., Mexico

The Mining and Exploration News in Mexico: Highlights on the Third Week of December, 2020.

Fault slickenside

By Miguel A Heredia

During the fifty one week of the year (December 14th to December 20th, 2020), at least 22 press releases were announced by companies working in Mexico and 4 news published by the media, with seven disclosing deals and corporate issues, five communicating production and financial results, four informing on exploration results, three announcing financial rounds, two discussing social issues, two reporting on resources and development of their mine operations, and two  commenting on Mexican issues.  ON MEXICO ISSUES, Great Panther restarted operations at its Topia mine in Durango, after experiencing contagious of COVID-19 among the workforce. The Chihuahua Mining Cluster appointed its new board president. The Association of Miners of Sonora (AMSAC) decided to extend the current board for one year.  ON EXPLORATION, In Baja California Norte, Comet announced that a drilling program will commence in 2021 at its Santa Teresa project. In Sonora, Silver Viper released drill results from its El Rubi project. In Chihuahua, Monarca Minerals announced its intention to conduct an initial 5,000m of drilling at its San Jose project. In Sinaloa, Vizsla released surface and underground sampling results from its Panuco project. ON MINING, GoGold presented Q3, 2020 production and financial results from its Parral Tailing operation in Chihuahua. Prime reported Q2, 2020 financial results. ON FINANCING, Silver Dollar granted stock options to its directors, officers, and consultants (La Joya property, Durango). Gatos Silver provided an update and announced inclusion in the Russell 2000 Index, as well as in the VanEck Vectors Junior Gold Miners ETF (GDXJ) (Los Gatos, Chihuahua).  ON RESOURCES AND DEVELOPMENT, Southern Silver reported drill results from its Cerro Las Minitas property in Durango. Capitan Mining released RC drill results from three holes collared at its Peñoles project in Durango. Gatos Silver commenced a 58,000m infill and extensional drilling program at its Cerro Los Gatos deposit in Chihuahua. GR reported drill results from 2 holes collared at its Plomosas property in Sinaloa. Fabled started an 8,000m drilling program at its Santa Maria project in Chihuahua. ON DEALS AND CORPORATE ISSUES, Aztec Minerals and Kootenay entered into a JV option agreement for the Cervantes project in Sonora. Defiance acquired option to purchase royalty at the Tepal property in Michoacan. Pan American appointed a new member to its board of directors (La Colorada, Zacatecas). Equinox announced friendly acquisition of Premier Gold (Mercedes Mine, Sonora). Canuc appointed a new special adviser to the company (San Javier property, Sonora). Santacruz reached an agreement with Peñoles to extend the Zimapan Mine lease until June 30, 2021.   ON SOCIAL RESPONSIBILITY, Minera Media Luna, a subsidiary of Torex Gold invested MXP $1.8M to improve the Nuevo Balsas Health Center. Grupo Mexico donated eight thousand plants in Colima.

ON MEXICO ISSUES

  • Great Panther Mining Limited, restarted operations at its Topia mine in Durango, after have experienced contagious of COVID-19 among the workforce. Mining resumed on December 17 and the plant is expected to begin processing ore on December 21.
  • The Chihuahua Mining Cluster appointed its new board president. This event was joined by the special presence of the state leadership of the Association of Mining Engineers, Metallurgists and Geologists of Mexico; the direction of the Mining Chamber of Mexico; guild suppliers, as well as the new director of mining for the state government.
  • The Association of Miners of Sonora (AMSAC) decided to extend the current board for one year as a result of the pandemic that paralyzed multiple activities in the sector.

ON EXPLORATION

  • Comet Resources Limited announced that a drilling program will commence in 2021 at its Santa Teresa project in Baja California Norte. Comet has identified sources of water for the drilling program and has improved roads to the drill sites. It is also in the process of getting the drill permit to commence the drilling in 2021. In addition, Comet has engaged a local geological consultancy to assist them with all geological programs, including permitting for drilling.
  • Silver Viper Minerals Corp., released drill results from its El Rubi project in Sonora. The most significant drill interval was encountered in hole LV20-283 with 0.72 g/t Au and 50 g/t Ag over a true width (TW) of 13.89m, including several intersection as 2.55 g/t Au and 226 g/t Ag over a TW of 0.64m, 3.26 g/t Au and 215 g/t Ag over a TW of 1.92m, 1.58 g/t Au and 108 g/t Ag over a TW of 3.84m, 4.38 g/t Au and 282 g/t Ag over a TW of 0.64m, 33.8 g/t Au and 67 g/t Ag over a TW of 1.6m, and 77.9 g/t Au and 133 g/t Ag over a TW of 1m. Silver Viper informed also that it has conducted initial bottle roll leach tests on four 500 g composites of mineralized material from El Rubi with extracting recoveries of 90-95% for Au and 62-76% for Ag. The company plans to conduct more detail test work.
  • Monarca Minerals Inc., announced its intention to conduct an initial 5,000m of drilling at its San Jose project in Chihuahua. Monarca plans to drill 10 holes to test some IP targets to depths of up to 500m. Monarca is looking to sign a surface agreement with the local Ejido as well as to apply to obtain the drilling permit.
  • Vizsla Resources Corp., released surface and underground sampling results from its Panuco project. Sampling highlights include 11.55 g/t Au and 2,091 g/t Ag (3,042 g/t AgEq) over a true width (TW) of 1m, and 6.7 g/t Au and 723 g/t Ag (1,304 g/t AgEq) over a TW of 1.2m at Agua Zarca target; 2.23 g/t Au and 264 g/t Ag (456 g/t AgEq) over a TW of 2.9 at El Batel target; 0.77 g/t Au and 315 g/t Ag (368 g/t AgEq) over a TW of 4.1m, including 1.28 g/t Au and 892 g/t Ag (958 g/t AgEq) over a TW of 1.3m at La Bomba target; and 0.67 g/t Au and 225 g/t Ag (275 g/t AgEq) over a TW of 10.5m, including 1.34 g/t Au and 371 g/t Ag (473 g/t AgEq) over a TW of 4m at Huaco target. These results will help to generate drill targets for 2021.

ON MINING

  • GoGold Resources Inc., presented Q3, 2020 production and financial results from its Parral Tailing operation in Chihuahua. The company produced 605,723 Oz AgEq at a cash and AISC of USD $11.97 and USD $14.31 per Oz AgEq respectively. GoGold reported revenue of USD $39.5M, a net income of USD $43.1M, and cash flow from operations before working capital changes of  USD $5.5M, including free cash flow from Parral of USD $6.5M.
  • Prime Mining Corp., announced Q2, 2020 financial results.   The company reported a net loss of CAD $1,656,466, cash, cash equivalent and short-term investment of CAD $7,678,959, total current liabilities of CAD $655,545, total liabilities of CAD $1,668,247, and total shareholder´s equity of CAD $19,921,788 (Los Reyes project, Sinaloa).

ON FINANCING

  • Silver Dollar Resources Inc., granted stock options to its directors, officers, and consultants to purchase up to 2.55M shares of the company. Shares are exercisable at $1.75 per share for five years (La Joya property, Durango).
  • Gatos Silver Inc., provided an update and announced inclusion in the Russell 2000 Index small capitalization stocks index, effective December 2021. Gatos recently completed an IPO with gross proceeds of USD $173M resulting in the largest precious metals IPO since 2010 and the largest precious metals equity financing during 2020. The company also announced the inclusion in the VanEck Vectors Junior Gold Miners ETF (GDXJ) (Los Gatos property, Chihuahua). 

ON RESOURCES AND DEVELOPMENT

  • Southern Silver Exploration Corp., reported drill results from Mina La Bocona target area at its Cerro Las Minitas property in Durango. Significant drill intersects were encountered at hole 20CLM-125 with 1.41 g/t Au and 36 g/t Ag (201 g/t AgEq) over a 28.5m, including 5.1 g/t Au and 72 g/t Ag (552 g/t AgEq) over 2.8m, and a deeper intersection of 0.45 g/t Au, 421 g/t Ag, 5.5% Pb, and 1.9% Zn (704 g/t AgEq or 17.9% ZnEq) over 6.1m (true width of 4.0m), including 0.64 g/t Au, 1,420 g/t Ag, 16.8% Pb, and 00.6% Zn (2,012 g/t AgEq or 51% ZnEq) over 0.9m (true width of 0.6m). This drill result is part of a 10,000m, 2020-2021 core drilling program on the Cerro Las Minitas project. Two additional holes have been completed at Mina La Bocona target. Seven holes totaling 2,470 metres have now tested the Mina La Bocona target area with assays still pending from each hole.
  • Capitan Mining Inc., released drill results from three holes collared at its Peñoles project in Durango. Significant drill intercepts were encountered in holes 20-CARC-12 with 0.63 g/t Au over 73.15m, including 0.91 g/t Au over 36.5m; hole 20-CARC-09 with 0.69 g/t Au and 21 g/t Ag over 64.01m, including 1.26 g/t Au over 13.72m; and hole 20-CARC-08 with 0.58 g/t Au over 48.77m, including 0.82 g/t Au and 16 g/t Ag over 28.96m.
  • Gatos Silver Inc., commenced a 58,000m infill and extensional drilling program at its Cerro Los Gatos deposit in Chihuahua. The program is expected to cost USD $6.1M. Drilling has already begun with a program of 27,000m with an expected cost of USD $2.8M and is focused on definition and extension of the Cerro Los Gatos deposit. Completion of the program is anticipated by June 2021. A second program focused on expanding resources throughout the Los Gatos district is planned to initiate in early 2021.
  • GR Silver Mining Ltd., reported drill results from 2 underground holes collared at its Plomosas property in Sinaloa. Hole PLI20-01 intersected 30 g/t Ag, 0.01 g/t Au, 1.3% Pb, and 2.8% Zn (254 g/t AgEq) over a true width (TW) of 16m, including 55 g/t Ag, 0.01 g/t Au, 4% Pb, and 8.3% Zn (424 g/t AgEq) over a TW of 4m; and hole PLI20-02 intersected 18 g/t Ag, 0.3 g/t Au, 1% Pb, and 1.7% Zn (130 g/t AgEq), including 107 g/t Ag, 1.7 g/t Au, 6.6% Pb, 9.6% Zn, and 0.2% Cu (778 g/t AgEq) over a TW of 4.2m. GR also reviewed and validated historical data from holes SD-62 and SD-67, confirming the presence of Au-Cu rich mineralization in other levels of the Plomosas Mine area. Hole SD-62 encountered  31 g/t Ag, 0.12 g/t Au, 0.8% Pb, 1.4% Zn, and 1.3% Cu (200 g/t AgEq) over a TW of 25.3m, while hole SD-63 intersected 115 g/t Ag, 1.04 g/t Au, 11.3% Pb, 5.4% Zn, and 0.7% Cu (800 g/t AgEq) over a TW of 6.1m.
  • Fabled Silver Gold Corp., started an 8,000m drilling program at its Santa Maria project in Chihuahua to test 11 new IP anomalies identified during the first ever geophysical survey conducted at the property. A 3-D IP survey covered the entire property at 50m-line spacing and was 16 blocks in size with penetration to -500m minimum. In addition, 27km of ground magnetic was completed over the property resulting in the creation of several products such as total field, first derivate, reduce to pole, and 3D inversion magnetics.  “Fabled’s management team strongly believes that the Santa Maria Property is an under-explored, high-grade silver-gold project with significant exploration potential to expand mineral resources and identify new discoveries”. 

ON DEALS AND CORPORATE ISSUES

  • Aztec Minerals Corp., and Kootenay Silver Inc., entered into a JV option agreement for the Cervantes project in Sonora. Aztec has already completed its earn-in and exercised its option to acquire a 65% interest in the property. Now Aztec hold 65% interest in the property while Kootenay the remaining 35%. Both parties will keep their interest at Cervantes through share ownership in Aztec Minerals JV Corporation through its wholly owned subsidiary, Minera Azteca Dorado S.A. de C.V.
  • Defiance Silver Corp., acquired option to purchase the 2.5% NSR of the Tepal property in Michoacan from Minera Tepal, over four years for a total consideration of USD $4.85M.
  • Pan American Silver Corp., appointed a new member to its board of directors (La Colorada, Zacatecas).
  • Equinox Gold Corp., announced it has entered into a definitive agreement with Premier Gold Mines Limited to acquire all of the outstanding shares of Premier. Premier will spin-out to its shareholders shares of a newly created US-focused gold production and development company to be called i-80 Gold Corp. On closing of the transaction, existing Equinox Gold and Premier shareholders will own approximately 84% and 16% of Equinox Gold, and Equinox Gold and existing shareholders of Premier will own 30% and 70% of i-80 Gold, respectively, on an issued share basis.
  • Canuc Resources Corporation appointed a new special adviser to the company (San Javier property, Sonora). 
  • Santacruz Silver Mining Ltd., reached an agreement with Minera Cedros S.A.de C.V., a subsidiary of Industrias Peñoles S.A.B. de C.V. to extend the Zimapan Mine lease from December 31, 2020 to June 30, 2021.

ON SOCIAL RESPONSIBILITY

  • Minera Media Luna, a subsidiary of Torex Gold invested MXP $1.8M to improve the Nuevo Balsas Health Center, which will serve close to four thousand inhabitants of communities such as Nuevo Balsas, San Nicolás, La Fundición, Real del Limón, Acalmantlila, Balsas Sur, San Luis and Tomixtlahuacán. This center seeks to provide decent medical care since the areas that are farthest from the municipal capitals are severely affected in their health services due to the conditions of difficult access and remoteness.
  • Grupo Mexico donated eight thousand plants to the City Council and to the  Integral Development of the Family (DIF) of Colima to reforest the public gardens of the rural communities contributing to improve the environment and quality of life of the families of the municipality of Colima.

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

On the picture above, a fault slickenside in a Mn-Fe occurrence in a prospect in Chihuahua, Mexico.  Photo by Miguel A Heredia.

The Mining and Exploration News in Mexico: Highlights on the Third Week of November, 2020.

Barite crystals

By Miguel A Heredia

During the forty eight week of the year (November 16th to November 22th, 2020), at least 29 press releases were announced by companies working in Mexico and 1 news published by the media, with eight reporting on resources and development of their mine operations, six disclosing deals and corporate issues, six informing on exploration results, four commenting on Mexican issues, three  communicating production and financial results, two announcing financial rounds, and one discussing social issues.  ON MEXICO ISSUES, Equinox announced that the community blockade at its Los Filos mine in Guerrero has been lifted and access to the mine has been restored. First Majestic announced its intention to appeal the Circuit Court decision to nullify the Advance Pricing Agreement concluded in 2012 between Primero Empresa Minera and the Mexican tax authority, Servicio de Administracion Tributaria (SAT). Deputies of the mining commission of the State Congress and the State Secretariat of Economy of Sonora will join forces to request to the Federal Government that the Mining Fund returns to the Municipalities of the State.   Great Panther has temporarily suspended the operations at its Topia mine in Durango due to the detection of COVID-19 among the workforce.  ON EXPLORATION, In Sonora, Canuc started a drone supported, high frequency, magnetic survey over its newly acquired claims at its San Javier project, Silver Tiger reported drill results from its El Tigre project, Colibri released results from the trenching sampling carried out at its Evelyn project, and Riverside and its JV partner Carlyle reported channel sampling results from its Cecilia project. In Jalisco, GoGold released drilling results from El favor target at its los Ricos North project. In the State of Mexico, Impact has commenced a trenching sampling at its Manto America gold target.  ON MINING, Excellon reported Q3, 2020 production and financial results from its Platosa mine in Durango.  Santacruz reported October 2020 production results from its Zimapan and Rosario mines in Hidalgo and San Luis Potosi respectively. Starcore reported Q2, 2020/2021 production results from its San Martin mine in Queretaro.  ON FINANCING, Magna Gold closed the acquisition of the Margarita Silver project in Chihuahua. Telson executed a Trust Agreement with Trafigura Mexico (Tahuehueto project, Durango).  ON RESOURCES AND DEVELOPMENT, Azucar resumed drilling at its El Cobre property in Veracruz.  Endeavour expanded its land position at its Terronera property in Jalisco. Elemental Royalties presented Q3, 2020 results from its Mercedes mine in Sonora. Mexus provided an update on its new heap leach pad at its Santa Elena mine in Sonora. Golden Minerals received the final environmental permit for its Rodeo property in Durango. Minera Alamos announced an independent NI 43-101 compliant mineral resource estimate of 630K Oz Au at its Cerro de Oro project in Zacatecas. Sierra Metals announced a significant increase of its mineral resource estimate at its Cusi mine in Chihuahua. SilverCrest announced new high-grade discovery at the Babi Vista Splay Vein within its Las Chispas project in Sonora. ON DEALS AND CORPORATE ISSUES, Aura announced a new and improved offtake agreement with Trafigura starting in 2022 (Aranzazu property, Zacatecas). Barksdale appointed its company Senior VP Project Development (San Javier project, Sonora).  Comet changed its provider for shareholder registry services from Advanced Share Registry Services to Automic Pty Ltd (Santa Teresa property, Baja California).  SilverCrest announced the appointment of a new member for its Board of Directors (Las Chispas project, Sonora). Starcore presented results from its annual general meeting of shareholders (San Martin mine, Queretaro).  Silver Dollar announced it has hired a Country Manager for its la Joya Silver project in Durango.   ON SOCIAL RESPONSIBILITY, Torex achieved 10M hours work without a lost time injury (El Limon-Guajes mine complex, Guerrero).

ON MEXICO ISSUES

  • Equinox Gold Corp., announced that the community blockade at its Los Filos mine in Guerrero has been lifted and access to the mine has been restored. Los Filos has commenced a staged restart and workers will resume their duties only after testing negative for COVID-19.
  • First Majestic Silver Corp., announced its intention to appeal the Circuit Court decision to nullify the Advance Pricing Agreement concluded in 2012 between Primero Empresa Minera SA de CV (PEM) and the Mexican tax authority, Servicio de Administracion Tributaria (SAT).   “The Federal Court’s decision directs SAT to re-examine the evidence and basis for the issuance of the APA with retroactive effect, for the following key reasons: (i) SAT’s errors in analyzing PEM’s request for the APA and the evidence provided in support of the request; and (ii) SAT’s failure to request from PEM certain additional information before issuing the APA. The Company’s legal advisors having now reviewed the written reasons continue to be of the view that the Federal Court’s decision is flawed both due to procedural irregularities and failure to address the relevant evidence and legal authorities. The Company intends to appeal the decision to the Circuit Courts by the December 1, 2020 deadline”.
  • Deputies of the mining commission of the State Congress and the State Secretariat of Economy will join forces to request to the Federal Government that the Mining Fund returns to the Municipalities of the Sonora State. The commission reported that the Federal Government has pending the contribution of MXP $1,500M corresponding to fiscal year 2019 to be exercised in fiscal year 2020 in works of high social impact in municipalities with mining activities. One of the deputies stated that the resources of the Mining Fund originated in the State of Sonora, must remain here, because it is a resource of Sonora and must be applied, definitely, to the needs of the State. Sonora ranks first in the country in the extraction of copper, gold, molybdenum, wollastonite, and graphite and second in silver, substances that are exploited by national and foreign companies with investments around the world.
  • Great Panther Mining Limited has temporarily suspended the operations at its Topia mine in Durango due to the detection of COVID-19 among the workforce.   A reduced workforce will remain on site to maintain essential activities for the duration of the voluntary suspension. The health and safety of employees, contractors, and host communities remains a priority.  The company will continue working closely with the local government and regional health authorities to ensure a safe restart of normal operations.

ON EXPLORATION

  • Canuc Resources Corporation, started a drone supported, high frequency, magnetic survey over the 800m in length and 80 m in width silver-bearing magnetite swarms that have been identified within, and proximal to the large silver-bearing breccia structures uncovered in July and August of this year and first reported in a press release dated September 22nd.   
  • Silver Tiger Metals Inc., reported drill results from its El Tigre project in Sonora, where the company is currently exploring with core drilling the Caleigh and Protectora Veins. The company has drilled ten holes and highlights include hole 163 on Protectora Vein with 1,782 g/t Ag and 3.56 g/t Au (2,049 g/t AgEq) over 0.5m, and a second intercept of 1,374 g/t Ag and 0.89 g/t Au (1,441 g/t AgEq) over 0.5m; hole 164 on Protectora Vein with 805 g/t Ag and 10.5 g/t Au (1,593 g/t AgEq) over 0.5m; hole 158 on Caleigh Vein with 815 g/t Ag and 4.09 g/t Au (1,122 g/t AgEq) over 0.7m; and hole 156 on Caleigh Vein with 752 g/t Ag and 7.09 g/t Au (1,284 g/t AgEq) over 0.3m.
  • Colibri Resource Corporation, released results from the trenching sampling carried out at its Evelyn project in Sonora.  Fifty six chip samples from 0.30 to 2.00m in length were taken from trenches at The Cerro Rojo, El Sahuaro, and the West Evelyn targets. Nine samples returned values greater than 1 g/t Au and a total of 16 samples returned values greater than 0.1 g/t Au, with a peak of 23.2 g/t Au at the Cerro Rojo target area. The trenching has defined a northwest-southeast mineralized trend over an approximate strike length of 35 metres with samples ranging from 0.304 g/t Au to 27.5 g/t Au.
  • Riverside Resources Inc and its JV partner Carlyle Commodities Corp., reported channel sampling results from its Cecilia project. Thirty six channel samples were collected from underground working as well as at surface over the San Jose target from brecciated and silicified rhyolite. Over 43% of the samples returned more than 0.2 g/t Au with a peak of 48.3 g/t Au over a width of 0.75m. Other significant results were 0.86 g/t Au over 1.7m; 0.78 g/t Au over  0.85m; 0.66 g/t Au over 1.6m; 0.66 g/t Au over 0.8m; and 0.56 g/t Au over 1.25m.
  • GoGold Resources Inc., released drilling results from El Favor target at its los Ricos North project in Jalisco. Significant drill intercepts were encountered in hole LRGF-20-005 with 0.11 g/t Au and 74 g/t Ag (1.10 g/t AuEq or 83 g/t AgEq) over 21m, including 0.23 g/t Au and 150 g/t Ag (2.23 g/t AuEq or 167 g/t AgEq) over 9.0m; hole LRGF-20-006 with 2 intercepts, one of 0.2 g/t Au and 96 g/t Ag (1.48 g/t AuEq or 111 g/t AgEq) over 12m, including 0.53 g/t Au and 271 g/t Ag (4.15 g/t AuEq or 311 g/t AgEq) over  3.4m, and 0.97 g/t Au and 113 g/t Ag (2.47 g/t AuEq or 186 g/t AgEq) over 27m, including 3.35 g/t Au and 350 g/t Ag (8.01 g/t AuEq or 601 g/t AgEq); hole LRGF-20-007 with 0.28 g/t Au and 160 g/t Ag (2.4 g/t AuEq or 180 g/t AgEq) over 11m, including 0.53 g/t Au and 291 g/t Ag (4.41 g/t AuEq or 331 g/t AgEq) over 3.5m; hole LRGF-20-008 with 0.69 g/t Au and 255 g/t Ag (4.08 g/t AuEq or 306 g/t AgEq) over 52.1m, including 0.93 g/t Au and 343 g/t Ag (5.51 g/t AuEq or 413 g/t AgEq) over 37.1m, including 5.62 g/t Au and 2,052 g/t Ag (32.98 g/t AuEq or 2,473 g/t AgEq) over 5m, including 8.47 g/t Au and 3,039 g/t Ag (49 g/t AuEq or 3,675 g/t AgEq) over 3.3m; and hole LRGF-20-009 with 2 intercepts, one of 0.43 g/t Au and 148 g/t Ag (2.41 g/t AuEq or 180 g/t AgEq) over 11.6m, including 1.22 g/t Au and 324 g/t Ag (5.55 g/t AuEq or 416 g/t AgEq) over 2.5m, and 0.32 g/t Au and 63 g/t Ag (1.15 g/t AuEq and 87 g/t AgEq) over 32.5m, including 0.64 g/t Au and 171 g/t Ag (2.93 g/t AuEq or 220 g/t AgEq) over 7m. The drilling program at El Favor target has tested 1,000m along strike of the historic El Favor vein and workings. These first nine drill holes have confirmed the wide zones of mineralization mapped and sampled on surface continue down dip for close to 600m. The company stated that the mineralization is open along strike in both directions and down dip and will aggressively advance this zone towards a mineral resource estimate.
  • Impact Silver Corp., has commenced a trenching sampling at its Manto America gold target in the State of Mexico. Thirty three rock chip samples returning more than 2 g/t Au have been collected on this target, with a peak of 19.5 g/t Au over a true width of 1.2m. Additionally, 67 soil samples taken on a 50m by 25m grid have returned an average of 250 ppb Au. The 900m trenching sampling plans to test an area of 450m by 300m over the strongest Au-in soil anomalies. Previous operators of this target excavated two trenches, the same that were sampled by Impact, returning 0.51 g/t Au over 5.6m in width  and  a length of 23.5m, and 0.3 g/t Au over 5.5m in width and a length of 17.2m.

ON MINING

  • Excellon Resources Inc., reported Q3 2020 production and financial results from its Platosa mine in Durango. The company mined 21,877 tonnes and processed 22,612 tonnes of 483 g/t Ag, 5.3% Pb, and 6.8% Zn, with metallurgical recoveries of 93%, 85% and 80.9% respectively. Excellon produced 326.9K Oz Ag, 2.23M Lb Pb, and 2.75M Lb Zn (or 524.3K Oz AgEq), and sold 310.3K Oz Ag, 2.18M Lb Pb, and 2.28M Lb Zn (or 485.8K Oz AgEq) at  a cash and AISC of USD $12.60 and USD $18.92 respectively per Oz Ag sold. The company reported revenues of USD $9.7M, gross profit of USD $2.5M, net working capital of USD $10.5M, and cash and marketable securities of USD $10.1M as at September 30, 2020.
  •  Santacruz Silver Mining Ltd., reported October 2020 production results from its Zimapan and Rosario mines in Hidalgo and San Luis Potosi respectively. At Zimapan mine in  Hidalgo, the company milled 62,543 tonnes of 81 g/t Ag, 0.8% Pb, 2.6% Zn, and 0.32% Cu to produce 114K Oz Ag, 983.3K Lb Pb, 2.45M Lb Zn, and 315.3K Lb Cu (or 363.7K Oz AgEq). At Rosario mine in San Luis Potosi, Santacruz milled 6,319 tonnes of 85 g/t Ag, 0.2 g/t Au, 0.4% Pb, and 1.5% Zn to produce 15.1K Oz Ag, 26 Oz Au, 52.9K Lb Pb, and 169.7K Lb Zn. 
  • Starcore International Mines Ltd., reported Q2, 2020/2021 production results from its San Martin mine in Queretaro. Starcore milled 56,731 tonnes of 1.6 g/t Au and 22 g/t Ag with metallurgical recoveries of 88.5% and 56.99% respectively to produce 2,867 Oz AuEq.

ON FINANCING

  • Magna Gold Corp., closed the acquisition of the Margarita Silver project in Chihuahua from Sable Resources Ltd and Exploraciones Sable S de RL de CV. Magna acquired the property by paying CAD $1.5M in cash plus an additional CAD $800K in cash representing Mexican VAT, and CAD $3.5M in common shares in the capital of Magna, being 3,219,278 Magna shares at a deemed price of CAD $1.0872 per Magna Share. Immediately following the acquisition, the Purchaser exercised the option to acquire the property by payment to the titleholders of the property of CAD $500K in cash, plus an additional $368K in cash representing Mexican VAT; and CAD $1.8M in Magna Shares, being 1,655,629 Magna Shares at the Issue Price. In addition, Magna will pay Osisko Gold Royalties Ltd  a 2% NSR on all products mined and produced from the Property.
  • Telson Mining Corporation executed a Trust Agreement with Trafigura Mexico. Under the terms, Trafigura waived all defaults plus deferred all principal and interest payments until June30, 2021, under certain terms and conditions, related to certain loan agreements entered into between the parties in late 2017.  Additionally, Telson agreed to place its assets into the Trust to guarantee full repayment of all outstanding financial obligations under the loan agreements with Trafigura. Telson has advanced its Tahuehueto construction plans and currently calculates a construction budget at approximately USD $13M, including a 15% contingency. Telson is contemplating to enter into a USD $12M medium term loan facility with Accendo Banco S.A. Institucion de Banca Multiple,  the possibility of a small silver stream metal purchase funding or conducting a private placement financing to supplement the Accendo loan for Tahuehueto construction, and to provide working capital.

ON RESOURCES AND DEVELOPMENT

  • Azucar Minerals Ltd., resumed drilling at its El Cobre property in Veracruz. The company is  first deepening hole EC-20-108, which is located at the Primo Zone, in an effort to further delineate resource potential at the project beyond that contained in the initial Norte Zone mineral resource estimate. The Primo Target was discovered in 2019 based on the hole EC-19-086 which intersected 0.4 g/t Au and 0.24% Cu over 200m, including 0.94 g/t Au and 0.56% Cu over 55.6m.
  • Endeavour Silver Corp., expanded its land position at its Terronera property in Jalisco to 20,128 hectares by acquiring two adjacent groups of mineral concessions called La Sanguijuela and Cerro Gordo. La Sanguijuela, which covers the possible NW extension of the Terronera Vein and the possible west extension of the Los Reyes Vein, comprises 2,759 hectares and Endeavour has an option to purchase it by USD $550K in a four years staged payments. The Los Cuates Vein is the main structure at la Sanguijuela and has been traced for over a length of 1.5km with thickness of 2 to 6m with values of 0.5 – 5 g/t Au and 50-300 g/t Ag. Cerro Gordo, which covers the possible southeast extension of four Terronera footwall veins (Pena Gorda-Canoas, Los Venados-La Carbonera, Pena Blanca-El Alacran and El Mirador-Los Tablones) as well as three other veins (El Maguey-El Madrono, Monte Obscuro-Musgos and La Muda-Monte Grande), was acquired by staking 2,200 hectares. The El Maguey-El Madrono vein has been observed over a length of 1.6 km with a thickness of 2 to 4 m, carrying values of 0.6 to 2 g/t Au and 10-30 g/t Ag.  The Pena Gorda-Canoas vein outcrops over a length of 1.7 km with a thickness of 2 to 5 m, returning values up to 0.5 g/t Au and 40 g/t Ag. Vein systems in these two properties have never been drilled and Endeavour plans to test some portion during Q4, 2020.
  • Elemental Royalties Corp., presented Q3, 2020 results from its Mercedes mine in Sonora. The company announced that Mercedes mine was placed on care and maintenance following a decree from the Mexican Federal Government on March 30. 2020 in which listed mining operations as non-essential industry, and restarted activities on July, 2020 following a two-month suspension. Mining activities were focused with a reduce staff on higher grades and are concentrated on the Diluvio-Lupita-San Martin system while also implementing continued exploration, underground development and mill maintenance programs with the intention of returning to full production in due course.
  • Mexus Gold US provided an update on its new heap leach pad at its Santa Elena mine in Sonora. It has completed phase 1 of its new 250K tonnes pad which is expandable to 1M tonnes, and will have crush mineralized material averaging 2.7 g/t Au. Mexus is looking for a return of 0.6 g/t Au in solution. In addition, Mexus is scheduled to begin blasthole drilling to expand its open pit 2 by approximately 1,741 Oz Au at a grade of 2.7 g/t Au.
  • Golden Minerals Company received the final environmental permit for its Rodeo gold-silver property in Durango, which is scheduled to begin gold production in January 2021, delivering mineralized material at its Velardeña mill to process it immediately.   “The Velardeña plant is a typical agitated leach plant rated to handle up to 450 tonnes per day of throughput from Rodeo. It is equipped with a Merrill Crowe circuit and a modern doré refinery, and the attached tailings facility was recently expanded and is expected to be sufficient for the tailings produced from Rodeo’s operations”.
  • Minera Alamos Inc., announced an independent NI43-101 compliant inferred mineral resource estimate of 630K Oz Au at its Cerro de Oro project in Zacatecas. The inferred mineral resource was prepared using an economic pit shell at a gold price of USD $1,450 per Oz and contains 630K Oz of oxide gold mineralization from 48M tonnes of 0.41 g/t Au.  Minera Alamos has also identified a number of high priority targets with potential to expand resources at Cerro de Oro, as well as a limited number of diamond drill holes which have demonstrated the potential for sulphide mineralization to extend to depth below the current estimate area.
  • Sierra Metals Inc., announced a significant increase of its mineral resource estimate at its Cusi mine in Chihuahua. The company increased 18% the measured and indicated resources from 4,557,000 tonnes to 5,356,000 tonnes, and 200% the inferred resources from 1,633,000 tonnes to 4,893,000 tonnes. The updated mineral resource estimate include measured + indicated resources of  5,356,000 tonnes of 182 g/t Ag, 0.12 g/t Au, 0.5% Pb, and 0.6% Zn (215 g/t AgEq) for a total of 31.26M Oz Ag, 20.22K Oz Au, 58.26M Lb Pb, and 67.99M Lb Zn (37M Oz AgEq), and Inferred resources of 4,893,000 tonnes of 146 g/t Ag, 0.18 g/t Au, 0.43% Pb, and 0.69% Zn (183 g/t AgEq) for a total of 23M Oz Ag, 27.7K Oz Au, 46M Lb Pb, and 74.81M Lb Zn (28.82M Oz AgEq).
  • SilverCrest Metals Inc., announced new high-grade discovery at the Babi Vista Splay Vein within its Las Chispas project in Sonora as a result of an in-fill drilling program at the northwestern extension of the Babi Vista Vein. Twenty four holes have been collared at this target with a high grade footprint of approximately 300m along strike and average height of 175m. Weighted average results are 74.27 g/t Au and 3,437 g/t Ag (9,071 g/t AgEq) over a true width of 1.6m. The most significant drill intercept was encountered in hole BV20-201 with 555.36 g/t Au and 19,453 g/t Ag (61,105 g/t AgEq) over a true width of 2.4m. This discovery at Babi Vista Splay Vein will be included as inferred resources for the upcoming resource estimation in the ongoing PFS study.

ON DEALS AND CORPORATE ISSUES

  • Aura Minerals Inc., announced a new and improved offtake agreement with Trafigura Mexico S.A. de C.V., starting in 2022. The new agreement, in which Trafigura has agreed to purchase 100% of the copper and gold concentrate produced at Aranzazu mine in Zacatecas,  is effective as of the beginning of 2022 and continues until the end of 2024.
  • Barksdale Resources Corp., appointed its company Senior VP of project Development. Its role will be overseeing the advancement of the Company’s project portfolio, including the San Javier copper-gold project in Sonora, Mexico. In connection with this appointment, Barksdale has granted a stock option to purchase 250K common shares, exercisable at $0.68 per share over a three-year period. 
  • Comet Resources Limited, changed its provider for shareholder registry services from Advanced Share Registry Services to Automic Pty Ltd (Santa Teresa property, Baja California).
  • SilverCrest Metals Inc., announced the appointment of a new member for its board of directors (Las Chispas project, Sonora).
  • Starcore International Mines Ltd., presented results from its annual general meeting of shareholders (San Martin mine, Queretaro).  
  • Silver Dollar Resources Inc., announced it has hired a Country Manager to work alongside the company at its la Joya Silver project in Durango.

ON SOCIAL RESPONSIBILITY

  • Torex Gold Resources Inc., achieved 10M hours work without a lost time injury (El Limon-Guajes mine complex, Guerrero).

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, barite crystals from a low-intermediate sulphidation epithermal system in a prospect in Chihuahua, Mexico.  Photo by Miguel A Heredia.

The Mining and Exploration News in Mexico: Highlights on the Second Week of August, 2020.

Phyllic alteration

By Miguel A Heredia

During the thirty three week of the year (August 10th to August 16th, 2020), at least 43 press releases were announced by companies working in Mexico, with twelve disclosing deals and corporate issues, seven announcing financial rounds, six communicating production and financial results, six informing on exploration results, five reporting on resources and development of their mine operations, four discussing social issues, and three commenting on Mexican issues. ON MEXICO ISSUES, Mining drives the economy of the municipalities of Santa Barbara and San Francisco del Oro, Chihuahua. The Undersecretary of Mining, Francisco Quiroga and the Major of Progreso, Coahuila, Federico Quintanilla started up the modern “La Esperanza” locomotive at the Santa Barbara mine, with the purpose of promoting a fair and safe reactivation of coal orders that will be transformed into jobs for this municipality. Mexican Au production will suffer declines due to COVID-19 pandemic.  ON EXPLORATION, In Sonora, Colibri Resource began a high resolution mag survey at its Evelyn project, its JV partner Silver Spruce commenced a mapping and sampling program at its El Mezquite, and Silver Tiger reported underground channel sampling results from its El Tigre project. In Chihuahua, Kootenay presented drill results from 4 holes collared at its Columba project. In Sinaloa, GR Silver released drill results from 14 holes drilled by previous companies at its Plomosas project but not previously released, and Vizsla reported a second discovery drilling at its Panuco project.  ON MINING, Argonaut, Equinox, GoGold, MAG Silver, and Santacruz Silver presented Q2, 2020 production and financial results from their Mexican mine operations; Starcore presented Q1, 2021 production and financial results from its San Martin mine in Queretaro.  ON FINANCING, Canuc closed a non-brokered private placement for gross proceeds of $225K (San Javier project, Sonora). Discovery Metals closed a non-brokered private placement for gross proceeds of CAD $35M, including CAD $15M investment from Eric Sprott (Cordero project, Chihuahua).  Orex Minerals announced a non-brokered private placement offering for aggregate gross proceeds of up to $5.5M (Sandra and Coneto projects, Durango). One World Lithium closed a portion of its previously announced non-brokered private placement raising gross proceeds for CAD $336K (Salar del Diablo project, Baja California). Silver Spruce announced a private placement financing for gross proceeds of up to $1.6M (El Mezquite project, Sonora).  Sonoro Metals closed a non-brokered private placement financing for gross proceeds of $8M including the fully subscribed overallotment option (Cerro Caliche project, Sonora). Sable Resources entered    into an agreement with Sprott Capital for a private placement financing for gross proceeds of up to CAD $5M (Margarita project, Chihuahua). ON RESOURCES AND DEVELOPMENT, SilverCrest released drill results from its Las Chispas project. Golden Minerals announced results from 9 diamond holes of its in-fill resource definition drill program at its Rodeo project in Durango. Coeur provided mid-year 2020 exploration update on its Palmarejo project in Chihuahua. SilverCrest provided an update of the activities carried out at its Las Chispas project in Sonora during the period H1, 2020. Orla Mining received from the Mexican Federal Environmental Department (“SEMARNAT”), the environmental permit required for the development of its Camino Rojo project in Zacatecas.   ON DEALS AND CORPORATE ISSUES, Brigadier signed a definitive agreement to acquire Picachos property in Sinaloa, including the past producing San Agustin mine, and made the appointment of a new member to its board of directors.  Magna Gold entered into a definitive option agreement with a private party to acquire a 100% undivided interest in the Los Muertos property in Sonora. Silver Dollar signed a definitive agreement with First Majestic to acquire up to a 100% interest in the La Joya property in Durango. Alien appointed IBK Capital Corp to assists it with the project level funding and JV process for its Donovan 2 project in Zacatecas. Avino has granted the exclusive right to Gray Rock Resources to acquire a 100% interest in the Ana Maria and Laberinto properties in Durango. Evrim reported results from its annual general meeting of shareholders, and approved the merger with Renaissance Gold (Ermitaño project, Sonora).  Excellon announced results from its 2020 annual general meeting of shareholders (La Platosa mine, Durango). Riverside completed the spin-out of shares of Capitan Mining Inc. (Peñoles mining district, Durango). Monarca closed the sale of the El Sol project in Durango to Southern Silver and appointed a new member to its board of directors (Tejamen project, Durango). Minera Alamos granted stock options to an officer of the company (Santana project, Sonora).  ON SOCIAL RESPONSIBILITY, Minera Media Luna (Torex Gold), inaugurated a waste water treatment system at Cocula municipality of Guerrero. Grupo Mexico Foundation donated seven assisted breathing ventilators, as well as personal protection equipment for ambulances from the Ministry of Health of Coahuila. Personnel of Fresnillo plc will carry out rapid tests of COVID-19 in the communities and neighborhoods near the area of operation of the mines in the Fresnillo district.

ON MEXICO ISSUES

  • Mining drives the economy of the municipalities of Santa Barbara and San Francisco del Oro, Chihuahua. The main source of employment in Santa Barbara and San Francisco del Oro is mining. If not, these two towns could become “ghost” cities. Currently these two areas of the south of the state have prospered thanks to the establishment of mining companies that have taken advantage of the resources from their respective foundations, which were precisely constituted by the discovery of mines at the time of the Viceroyalty and until now they continue operating.
  • The Undersecretary of Mining, Francisco Quiroga and the Major of Progreso, Coahuila, Federico Quintanilla started up the modern “La Esperanza” locomotive at the Santa Barbara mine, with the purpose of promoting a fair and safe reactivation of coal orders that will be transformed into jobs for this municipality. In meeting with the Undersecretary of Mining, the mayor explained the need to request coal orders from the Federal Electricity Commission (CFE) to ensure investment and, above all, return employment to hundreds of families who depend on this activity in the municipality of Progress, Coahuila.
  • Mexican Au production, will suffer a decrease of more than 300K Oz in Au production this year due to the COVID-19 pandemic. The figure represents 9.3% of the 3.46M Oz Au of the production originally projected for 2020, according to BNamericas’ forecast and estimates for 20 companies in March, 2020. Mexico produced 126,607 Oz Au in May, 37.5% less than the same month last year, according to the national Institute of Statistics and Geography (INEGI).

ON EXPLORATION

  • Colibri Resource Corporation, began a high resolution mag survey at its Evelyn project in Sonora. The planned airborne magnetic survey will consist of 150 km in 59 N-S lines at 50m line spacing and 5 E-W tie-lines at 500m separation using a DRONE equipped with a Mag magnetometer. Results from this mag survey along with surface chip and channel samples, property wide soil sampling and previous drill results will be analyzed to plan drill targets for a fall 2020 drill program.
  • Silver Spruce Resources, has mobilized a crew to its El Mezquite property in Sonora to conduct geology mapping of the entire property and collect additional rock samples for analysis as well as for an study of alteration intensity and style using a Terraspec hyperspectral tool.
  • Silver Tiger Metals Inc., presented underground channel sampling results from its El Tigre project in Sonora. This sampling program is intended to generate drill targets. In the Fundadora Vein, highlights include 4.44 g/t Au and 3,064 g/t Ag (3,397 g/t AgEq) over a true width (TW) of 0.5m; 8.6 g/t Au and 2,500 g/t Ag (3,145 g/t AgEq) over a TW of 0.4m; and 22.3 g/t Au and 606 g/t Ag (2,278 g/t AgEq) over a TW of 1.2m. At Protectora Vein, highlights include 32.99 g/t Au and 2,283 g/t Ag (2,474 g/t AgEq) over a TW of 0.4m. At Caleigh Vein, highlights include 26.65 g/t Au and 1,679 g/t Ag (1,999 g/t AgEq) over a TW of 0.4m. At the Aquilas Norte area, sampling returned significant results such as 4.71 g/t Au and 1,709 g/t A (2,062 g/t AgEq) over a TW of 0.3m; and 1.37 g/t Au and 1,843 g/t Ag (1,946 g/t AgEq) over a TW of 0.3m.
  • Kootenay Silver Inc., presented drill results from additional four holes collared at its Columba project in Chihuahua in the J and Z Veins. Highlights include hole CDH-20-060 with 132 g/t Ag over a width of 64m, including two notable intervals: 1,025 g/t Ag over 1m within 226 g/t Ag over 9m, and 361 g/t Ag over 11m, including 608 g/t Ag over 5m, and 1,160 g/t Ag over 1m, all within 229 g/t Ag over 22m; and hole CDH-19-030 with 200 g/t Ag over 25.85m, including 415 g/t Ag over 11.15m, including 982 g/t Ag over 1.9m within 721 g/t Ag over 4.07m. The Ag mineralization in the J and Z Vein system is related to silicified breccias and thin quartz vein stockworks following classic banded quartz vein structures more characteristic of the F-Vein.
  • GR Silver Mining Ltd., announced drill results from 14 holes drilled by previous companies but not previously released from its Plomosas project in Sinaloa, revealing the presence of wide zones of Au mineralization in addition to attractive near surface Ag-Pb-Zn mineralization. Significant drill intercepts were encountered at hole PLSS18-02 with 0.2 g/t Au, 350 g/t Ag, 0.3% Pb, and 0.2% Zn (383 g/t AgEq) over a true width (TW) of 2m, including 0.5 g/t Au, 1,559 g/t Ag, 1.4% Pb, and 1.1% Zn (1,687 g/t AgEq) over a TW of 0.4m; hole 219 with 1.9 g/t Au, 191 g7t Ag, 7.1% Pb, and 3.4% Zn (716 g/t AgEq) over a TW of 4.4m, and hole 235 with 2.3 g/t Au, 134 g/t Ag, 0.1% Pb, and 2.4% Zn (437 g/t AgEq) over a TW of 0.8m; and hole 244 with 1.7 g/t Au, 17 g/t Ag and 0.7% Zn (209 g/t AgEq) over a TW of 12.6m. These drill results define a mineralized strike length of up to 700m, with field evidence and underground mapping indicating further continuity along strike and down dip.
  • Vizsla Resources Corp., reported a second discovery drilling at the San Carlos mine on the Animas Vein corridor within its Panuco project in Sinaloa. Highlights include hole AM-20-15 with 0.61 g/t Au and 93 g/t Ag (144.9 g/t AgEq) over 0.35m; and hole AM-20-16 with 1.14 g/t Au and 130 g/t Ag (229 g/t AgEq) over 16.25m, including 2.19 g/t Au and 231 g/t Ag (421 g/t AgEq) over 6.75m, including 5.08 g/t Au and 821 g/t Ag (1,245 g/t AgEq) over 1.50m. The San Carlos Mine is over 6 km east of the recent discovery at the Napoleon vein corridor.

ON MINING

  • Argonaut Gold Inc., announced Q2, 2020 production and financial results from their Mexican operations. At El Castillo mine in Durango, Argonaut processed 902K tonnes of 0.43 g/t Au to produce 9,151 Oz Au and 19,547 Oz Ag or 9,394 GEOs (Oz AuEq), at a cash cost of $862 per Oz Au sold. At San Agustin mine in Durango, the company processed 1.18M tonnes of 0.33 g/t Au to produce 13,403 Oz Au and 69,242 Oz Ag (14,288 GEOs) at a cash cost of $76 per Oz Au sold. The El Castillo complex (Castillo + San Agustin mines) produced 23,662 GEOs at a cash cost of $802 per Oz Au sold during Q2, 2020. At La Colorada mine in Sonora, Argonaut processed 506K tonnes of 0.42 g/t Au to produce 7,537 Oz Au and 26,554 Oz Ag (7,869 GEOs) at a cash cost of $1,169 per Oz Au sold.
  • Equinox Gold Corp., did not report production results by single operation but presented a consolidated production of 127K Oz Au from their mine operations and sold 125.8K Oz, having earnings of USD $85.1M, a net loss of USD $58.7M, and an adjusted net income of USD $26.6M. For Los Filos mine in Guerrero, most of the period Q2, 2020, the mine was on suspension due to the COVID-19 pandemic but the company provided a H2, 2020 guidance and expects to produce 90K-100K Oz Au at an AISC of USD $850-950 per Oz Au.
  • GoGold Resources Inc., presented financial results from its Parral Tailings project in Chihuahua for the period Q2, 2020. GoGold stacked 282.7K tonnes at a cash and AISC cost of USD $12.13 and USD $14.93 per Oz AgEq respectively. The company sold 469.5K Oz AgEq with revenue of USD $7.9M and a free cash of flow of USD $2.2M.
  • MAG Silver Corp., announced that underground production at its Juanicipio project in a JV with Fresnillo plc in Zacatecas is expected to commence soon. An anticipated processing of 16K tonnes per month from which 8,850 tonnes were successfully at the Fresnillo pant on a test basis while the Juanicipio plant is commissioned. The capex expended from January 1, 2018 to June 30, 2020 is approximately USD $172,695 leaving an estimated USD $267,305 of remaining initial capital (MAG’s 44% estimated remaining share is USD $117,614 as at June 30, 2020). This funding requirement would be reduced by both: existing cash held in Minera Juanicipio as at June 30, 2020 (USD$35,337); and, expected cash flows generated from mineralized rock sold and processed through the Fresnillo processing plant referenced above.
  • Santacruz Silver Mining ltd., reported Q2, 2020 production and financial results from its Mexican mine operations. Consolidated production results of Santacruz for the period Q2, 2020 resulted in 116,799 tonnes processed to produce 216K Oz Ag, 57 Oz Au, 679K Lb Cu, 1.68M Lb Pb, and 4.85M Lb Zn. At Zimapan mine in Hidalgo, the company processed 106,725 tonnes of 75 g/t Ag, 0.42% Cu, 0.7% Pb, and 2.5% Zn to produce 181.8K Oz Ag, 679K Lb Cu, 1.5M Lb Pb, and 4.45M Lb Zn. At Rosario mine in San Luis Potosi, Santacruz processed 10,074 tonnes of 0.25 g/t Au, 113 g/t Ag, 0.8% Pb, and 2% Zn to produce 57 Oz Au, 34.2K Oz Ag, 154K Lb Pb, and 392.4K Lb Zn.
  • Starcore International Mines Ltd., presented production results from its San Martin mine in Queretaro for the period Q1, 2021. Starcore processed 59.1K tonnes of 1.7 g/t Au and 29 g/t Ag at metallurgical recoveries of 88.77% and 56.53% respectively to produce 3,250 Oz AuEq.

ON FINANCING

  • Canuc Resources Corporation, closed a non-brokered private placement for gross proceeds of $275K. Net proceeds will be used for exploration at its San Javier project in Sonora.
  • Discovery Metals Corp., closed a non-brokered private placement for gross proceeds of CAD $35M, including CAD $15M investment from Eric Sprott. After this investment. Mr. Sprott will own approximately 26.4% interest in Discovery Metals on a non-diluted basis or 29.9% on a partially diluted basis assuming the exercise of warrants held by Mr. Sprott. Net proceeds will be used to fund Discovery´s continuing exploration programs at its Cordero project in Chihuahua and its other projects in Coahuila.
  • Orex Minerals Inc., announced a non-brokered private placement offering for aggregate gross proceeds of up to $5.5M (Sandra project. Durango). Mr. Eric Sprott intends to subscribe for the entirety of the offering. Net proceeds will be used for working capital requirements and other general corporate purposes (Sandra and Coneto properties in Durango).
  • One World Lithium Inc., closed a portion of its previously announced non-brokered private placement raising gross proceeds for CAD $336K. Net proceeds will be used primarily for funding part of its Salar del Diablo drilling program in Baja California and for working capital.
  • Silver Spruce Resources Inc., announced a private placement financing for gross proceeds of $1.6M. The proceeds will be used for exploration of the El Mezquite and Pino de Plata projects in Sonora and Chihuahua states respectively.
  • Sonoro Metals Corp., closed a non-brokered private placement financing for gross proceeds of $8M including the fully subscribed overallotment option. The Company plans to use the proceeds from the offering to launch Phase One of the 2020-21 Core Drilling Program to test its Cerro Caliche epithermal system’s potential to host high-grade gold mineralization at depth as discussed previously.
  • Sable Resources Ltd., entered into an agreement with Sprott Capital Partners LP as lead agent for a private placement financing for gross proceeds of up to CAD $5M. The offering is expected to close on or about September 10, 2020. Gross proceeds will be used for exploration and general corporate and working capital purposes (Margarita project, Chihuahua).

ON RESOURCES AND DEVELOPMENT

  • SilverCrest Metals Inc., released drill results from the Babi Vista Vein within its Las Chispas project in Sonora. This program is designed to expand and in-fill high grade mineralization to be included in the updated resource for the ongoing FS. The expanded high-grade footprint for Babi Vista is estimated at 800m along strike by an average 150m in height. The most significant results were encountered at hole BV20-60 with 635 g/t Au and 26,004 g/t Ag (73,595 g/t AgEq) over a true width (TW) of 1.3m; hole BV20-53 with 19.87 g/t Au and 2,996 g/t Ag (4,486 g/t AgEq) over a TW of 4.4m; and hole BV20-94 with 85.4 g/t Au and 4,716 g/t Ag (11,121 g/t AgEq) over a TW of 0.7m.
  • Golden Minerals Company, announced results from nine diamond holes of its in-fill resource definition drill program at its Rodeo project in Durango. Each of the first nine diamond drill holes intersected wide zones of near-surface gold mineralization, with significant drill intercepts encountered at hole RDO-20-001-M with 1.85 g/t Au and 11 g/t Ag over 45m, including 2.59 g/t Au and 13 g/t Ag over 29.44m, including 4.04 g/t Au and 20 g/t Ag over 13.23m; hole RDO-20-002 with 2.18 g/t Au and 7 g/t Ag over 35m, including 4.21 g/t Au and 5 g/t Ag over 9.9m, including 2.44 g/t Au and 2.44 g/t Au and 17 g/t Ag over 10.39m; hole RDO-20-003-M with 3.23 g/t Au and 11 g/t Ag over 40m, including 6.86 g/t Au and 16 g/t Ag over 12.95m, including 2.62 g/t Au and 15 g/t Ag over 10.85m; hole RD-20-004 with 1.27 g/t Au and 8 g/t Ag over 50m, including 3.33 g/t Au and 3 g/t Ag over 9.18m; hole RDO-20-005-M with 3.78 g/t Au and 18 g/t Ag over 40m, including 5.96 g/t Au and 20 g/t Ag over 23.4m; hole RDO-20-006 with 3.06 g/t Au and 9 g/t Ag over 30m, including 5.21 g/t Au and 10 g/t Ag over 15.5m, including 7.55 g/t Au and 11 g/t Ag over 8.11m; hole RDO-20-007 with 0.76 g/t Au and 3 g/t Ag over 50m, including 3.36 g/t Au and 7 g/t Ag over 7.2m; hole RDO-20-008 with 2.95 g/t Au and 10 g/t Ag over 40m, including 5.13 g/t Au and 15 g/t Ag over 20.5m, including 7.23 g/t Au and 24 g/t Ag over 9.6m; and hole RDO-20-009 with 1.51 g/t Au and 6 g/t Ag over 45m, including 2.67 g/t Au and 5 g/t Ag over 20.25m, including 3.32 g/t Au and 7 g/t Ag over 13.25m. Drill holes 001M, 003M and 005M were drilled with PQ drill-core to collect samples for metallurgical test work. Remaining drill holes were drilled with HQ drill-core.
  • Coeur Mining Inc., provided H1, 2020 exploration update on its Palmarejo project in Chihuahua. Exploration has been focused primarily on resource conversion and expansion drilling around the Guadalupe mine complex, and secondly on the Independencia mine complex. The company has drilled 29, 496m at a total investment of approximately $4.1M. At North Independencia, key drill results were encountered at hole VIDH-140 with 5.4 g/t Au and 236 g/t Ag over 5.3m and 21.4 g/t Au and 36 g/t Ag over 1.6m; at Northwest Independencia, hole VIDH-136 cut multiple intercepts: 4 g/t Au and 439 g/t Ag over 5.3m; 2.1 g/t Au and 293 g/t Ag over 6.6m; 1.8 g/t Au and 100 g/t Ag over 6.3m; 0.7 g/t Au and 282 g/t Ag over 3.6m; 2.9 g/t Au and 207 g/t Ag over 2.4m; and 4.8 g/t Au and 638 g/t Ag over 0.6m. At East Independencia, hole BVDH-047 intersected 1.4 g/t Au and 248 g/t Ag over 7.6m. Coeur has expanded the overall footprint in the district by mapping and sampling exposures of new veins SW and NE of the two underground mining complexes as well as new veins W and E of legacy open pit mine. It plans to continue aggressively drilling resource expansion targets in several areas during the remainder of 2020 and into 2021.
  • SilverCrest Metals Inc., provided an update on the activities developed at its Las Chispas project in Sonora in H1, 2020. The company completed 97,700m of in-fill and expansion drilling and completed approximately 2.1km of underground decline and lateral development, and stockpiled an additional 12K tonnes of mineralized material for a total stockpile of an estimated 41K tonnes at estimated diluted grade of 1Kg AgEq. SilverCrest expects to release a FS by the end of 2020.
  • Orla Mining Ltd., received from the Mexican Federal Environmental Department (“SEMARNAT”) the environmental permit required for the development of its Camino Rojo project in Zacatecas. Orla now has the two principal permits necessary for commencement of construction activities at Camino Rojo.

ON DEALS AND CORPORATE ISSUES

  • Brigadier Gold Ltd., signed a definitive agreement to acquire a 100% interest in the 3,954 ha Picachos property in Sinaloa, including the past producing San Agustin high grade Au mine. Picachos is along a large trend that host several precious metals epithermal vein systems and recently, a large porphyry copper target has been identified. To acquire 100% interest in the property, Brigadier has to make staged payments to the vendors totalling USD $275K over a 5-year period, issuance of 4M common shares of Brigadier, and cumulative exploration expenditures of USD $3,850,000. Brigadier will also make payments to the vendor for Picachos development milestones as to 1M common shares upon delineating a mineral resource estimate containing a minimum of 350K Oz Au in the inferred category, USD $725K and 1M common shares upon completion of a FS recommending the construction of a mine on the property, and USD $2M upon commencement of commercial production. In addition, Brigadier may, at its option, issue common shares, at the then current market price, subject to a minimum of $0.30 per share, in lieu of one half of the cash payments to be made pursuant to each of, and a 2% NSR will be retained by the vendor who is arm´s length to Brigadier. The company also announced the appointment of a new member to its board of directors.
  • Magna Gold Corp., entered into a definitive option agreement with a private party to acquire a 100% undivided interest in the Los Muertos property in Sonora. Los Muertos is characterized by extreme silicification, hematization, and argillic alteration, suggesting the potential for both extensive Ag-Au vein systems, and coincident, pervasive disseminated   Magna can earn a 100% undivided interest by paying an aggregate amount of USD $425K plus VAT in five annual installments commencing on the effective date of the agreement, August 3rd, 2020.
  • Silver Dollar Resources Inc., signed a definitive agreement with First Majestic to acquire up to a 100% interest in the La Joya property in Durango. The company may acquire an initial 80% interest by making staged payment totalling $1.3M over a 5-year period plus annual holding costs for the property, incurring exploration expenditures on the property of not less than $1M within 3 years, and issuing such number of common shares of the company as is equal to 19.9% of the then-issued and outstanding shares of Silver Dollar. . If Silver Dollar incurs at least $1,000,000 of exploration expenditures on the Property within three years of the date of the Definitive Agreement, First Majestic will waive the third- and fourth-anniversary cash option payments described above totalling $600,000. First Majestic will reserve a 2% NSR in all minerals produced from the property. Within 30 days after exercising its first option, Silver Dollar may exercise its second option and acquire the remaining 20% interest in the subsidiary that owns the La Joya Silver Project by delivering notice and issuing to First Majestic the number of shares as is equal to 5% of the then-issued and outstanding shares of Silver Dollar.
  • Alien Metals ltd., appointed IBK Capital Corp to assists it with the project level funding and JV process for its Donovan 2 project in Zacatecas. Its services include private placements of equity and debt instruments, with significant experience in the mining sector.
  • Avino Silver & Gold Mines Ltd., has granted the exclusive right to Gray Rock Resources Ltd., to acquire a 100% interest in the Ana Maria and Laberinto properties in Durango. In order to exercise the option, Gray Rock has to issue to Avino a total of $600k in cash or common shares: $50K in cash or shares within 30 days of the approval date; $50K in cash or common shares on or before the first anniversary of the approval date; $100K in cash or common shares on or before the second anniversary of the approval date; $200K in cash or common shares on or before the third anniversary of the approval date; $200K in cash or common shares on or before the fourth anniversary of the approval date; incur a total of $750K in exploration expenditures ($50K on or before the first anniversary of the approval date; 100K on or before the second anniversary of the approval date; and 600K on or before the fourth anniversary of the approval date). Gray Rock also granted Avino a right of first refusal on 60 days’ notice to Avino to purchase and process any ore or concentrate extracted from the properties under a custom milling contract at Avino’s mine facilities.
  • Evrim Resources Inc., reported results from its annual general meeting of shareholders, and approved the previously announced merger transaction with Renaissance Gold Inc Under the terms of the arrangement, each outstanding RenGold common share will be exchanged for 1.2448 Evrim common shares, which will result in RenGold shareholders immediately prior to the arrangement holding 50% of the issued and outstanding shares Evrim shares immediately following the arrangement.. Once the arrangement is completed, the company will change its name to Orogen Royalties Inc. (Ermitaño project, Sonora).
  • Excellon Resources Inc., announced results of its 2020 annual general meeting of shareholders, as well as the election of directors (La Platosa mine, Durango).
  • Riverside Resources Inc., completed the spin-out of shares of Capitan Mining Inc. Capitan and its shareholders will now hold 100% interest of the Au-Ag resource at the Peñoles project. Pursuant to the arrangement, holders of common shares of Riverside on August 13, 2020 will receive one new common share of Riverside and 0.2594 of a Capitan share for each common share held. The existing common shares of Riverside were delisted from the TSX Venture Exchange (TSXV) on August 13, 2020. Riverside shares commenced trading on the TSXV at the market opening on August 14, 2020.
  • Monarca Minerals Inc., closed the sale of the El Sol project in Durango to Southern Silver and appointed a new member to its board of directors. El Sol is a small mining concession of 63 ha adjacent to Southern Silver´s Cerro Minas project. The agreement is for USD $300K payable in three equal instalments on execution of a definitive agreement, twelve months and eighteen months together with retention by the Company of 2% NSR on production from the claim with a right in Southern Silver to purchase the royalty at any time for USD $1M. El Sol is a non-core asset for Monarca and net proceeds from the sell will be used to advance the company’s San Jose project in Chihuahua, Mexico and for general working capital.
  • Minera Alamos Inc., granted 600K options exercisable at a price of $0.67 to an officer of the company (Santana project, Sonora). The options will expire in five years.

ON SOCIAL RESPONSIBILITY

  • Minera Media Luna (Torex Gold), inaugurated a waste water treatment system at Cocula municipality of Guerrero. This system had an investment of MXP $6.3M and is part of the infrastructure endowment that the subsidiary mine of Torex Gold Resource planned for the relocation of said town in which 360 inhabitants live in 103 homes.
  • Grupo Mexico Foundation, donated seven assisted breathing ventilators, as well as personal protection equipment for ambulances from the Ministry of Health of Coahuila. In this way, the Ministry of Health of the Government of Coahuila guarantees high-quality advanced care, which can be offered from the place of the incident or report, to the transfer to the hospital for more personalized attention for COVID-19.
  • Personnel of Fresnillo plc, will carried out rapid tests of COVID-19 in the communities and neighborhoods near the area of operation of the mines in the Fresnillo district.

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, phyllic alteration in a porphyry Cu system in a prospect in Puebla, Mexico.  Photo by Miguel A Heredia.

The Mining and Exploration News in Mexico: Highlights on the First Week of May, 2020.

Bladed calcite in an epithermal vein system

By Miguel A Heredia

During the nineteen week of the year (May 4th to May 10th, 2020), at least 45 press releases were announced by companies working in Mexico, with eleven communicating production and financial results, seven announcing financing rounds, seven disclosing deals and corporate issues, six reporting on resources and developments, six discussing issues on social responsibility, five commenting on Mexican issues, and three informing on exploration results.  ON MEXICO ISSUES, Americas Gold and Silver reported that its Cosalá operation in Sinaloa continue to be illegally occupied. The General Direction of Mines announced that all mining procedures were suspended until May 30, 2020. Peñoles concluded the construction of its Capela mine in Guerrero with a total investment of USD $334M, of which USD $83.9M were exercised in 2019. Gold mining companies in Mexico are preparing for a solid second semester. ON EXPLORATION, In Sonora, Ridgestone announced that it has completed the first three holes of its ongoing 1,500m drill program at its Rebeico Au-Cu project and Aztec provided an updated 2020 strategic plan and outlook on its Cervantes project. In Chihuahua, Radius reported rock chip sampling results from its recently acquired Plata Verde project.   ON MINING, Avino, Endeavour, GoGold, Gold Resource, Golden Minerals, Great Panther, Hecla, Newmont, Pan American, Premier, and Torex reported production and financial results from their Mexican mining operations. ON FINANCING, Americas Gold and Silver entered in a bought deal public offering for net proceeds of approximately CAD $25M (Cosalá mine, Sinaloa). Fortuna Silver announced proposed amendments to financial covenants contained in its USD $150M credit facility (San Jose mine, Oaxaca). GR Silver entered firstly into a bought deal brokered private placement to raise aggregate gross proceeds of $6,021,000, and later the company upsized it to $8.1M (San Marcial and Plomosas projects, Sinaloa). Minaurum announced a private offering to raise up to CAD $5M (Alamos Silver project, Sonora).    Mithril announced that it is conducting a capital raising by way of a non-renounceable rights issue to shareholders for a minimum gross proceeds of A $1.5M and a maximum of A $2.46M (Copalquin project, Durango). Magna Gold entered into an amendment to include the closing of a non-brokered private placement for gross proceeds of a minimum of $1.8M and a maximum of $2M (San Francisco mine, Sonora).   ON RESOURCES AND DEVELOPMENT, Discovery Metals released results from eight diamond drill holes collared at its Cordero project in Chihuahua. GR Silver announced historical drilling results from its Plomosas Silver project and provided an update on its ongoing exploration program at its San Marcial project, both located in Sinaloa. Golden Minerals completed PEA´s for its Rodeo and Velardeña projects in Durango. ON DEALS AND CORPORATE ISSUES, Agnico announced election of directors during its annual and special meeting of shareholders (Pinos Altos, Chihuahua). Alio Gold completed the sale of its San Francisco mine in Sonora to Magna Gold. Argonaut and Alio received positive recommendations of its proposed merger announced on March 30, 2020 (El Castillo mine, Durango). Azucar Minerals granted stock options to certain directors, employees and consultants (El Cobre project, Veracruz). Xtierra received TSXV conditional approval for the acquisition of Minera Portree (Bilbao project, Zacatecas). Pan American Silver released its 2019 sustainability report (La Colorada mine, Zacatecas). ON SOCIAL RESPONSIBILITY, Chihuahua Mining Cluster donated MXP $200M to the Mexican Red Cross. Esperanza Silver de México (Alamos Gold), delivered protective overalls to doctors and nurses at the IMSS Regional hospital 1 in Cuernavaca. First Majestic delivered pantries to five Ejidos from the Municipality of Ocampo, Coahuila. Fresnillo plc joined donated medical equipment to hospitals in Sonora. Grupo Mexico, in coordination with the Torreón City Council, delivered 300 pantries and disinfectant products to residents of a neighborhood near its Met-Mex Peñoles metallurgical plant. Minera San Julian (Fresnillo plc), will provide mask to the Municipality of San Julian, Chihuahua. Aura Minerals, in coordination with the municipal authorities of Concepción Del Oro Zacatecas, has helped to implement measures designed to support the communities in this difficult time. Compañia Minera Pangea (McEwen Mining) donated cleaning kits to 109 families of seven communities near of its El Gallo mine in Sinaloa.

ON MEXICO ISSUES

  • Americas Gold and Silver, reported that its Cosalá operation in Sinaloa continue to be illegally occupied and stated that “while the company cannot negotiate with the self-interested representatives of this illegal action, it is optimistic that a legal a legitimate labour representative for its workers will be identified, and the mine will be in a position to re-open after any COVID-19 restrictions are lifted”.
  • The General Direction of Mines, announced that all the mining procedures were suspended until May 30, 2020 due to the COVID-19 pandemia. “For the foregoing, the holders of mining concessions are informed that the obligation to present the report during May to verify the execution of the exploration or exploitation works, in the terms of articles 27, fraction I, 28, 29, 30 and 31 of the Mining Law, and 63 to 66 of its regulations, the term for its presentation is suspended, until May 30, 2020”. The deadline for receipt of the report will be now from June 01, 2020 to June 30, 2020. This postponement was published in the Official Gazette of the Federation and is based on article 28 of the Federal Law of Administrative Procedure.
  • Peñoles Group, finalized the construction of its Capela mine in Guerrero with a total investment of USD $334M, of which USD $83.9M were exercised in 2019. This new unit has a grinding and processing capacity of 4,500 tons of ore per day, to produce an annual average of 4.7M Oz Ag, 89.6M Lb Zn, 19.3M Lb Pb, and 15.7M Lb Cu contained in Pb, Zn, and Cu. It will also generate a total of 650 jobs.
  • Gold Mining companies in Mexico, are preparing to reactivate their activities after quarantines applied by the government to achieve profitable production amid the multi-year records that commodity prices have broken. The timing and success of reactivations will largely depend on the evolution of the pandemic. As operations could resume in May, the mines are in good shape to take advantage of healthy yellow metal prices, although social distancing measures are likely to affect productivity and costs.

ON EXPLORATION

  • Ridgestone Mining Inc., announced that it has completed 435.7m on the first three holes of the ongoing 10 holes, 1,500m diamond core drilling program at its Rebeico Au-Cu project in Sonora. The three first holes were collared at the New York Zone where high grade Au-Cu mineralization has been sampled on surface. All holes present visible sulphide mineralization. Assay results are pending and will be released when available.
  • Aztec Minerals Corp., provided an updated 2020 strategic plan and outlook on its Cervantes project in Sonora. During Q2, 2020 the company plans to finalize the JV agreement with Kootenay Silver, finalize the interpretation of 3-D geophysics conducted in 2019, and advance exploration on near surface oxide Au mineralization and deeper porphyry sulphide Au-Cu targets. In Q3, 2020, Aztec plans to extend detail mapping and sampling of the Purisima West, Estrella, Jacobo, Brazil, and other targets at its Cervantes project, and plan and obtain permits for phase 2 drilling program on its California and Purisima targets. In Q4, 2020 the plan is to commence phase 2 drilling program on these two targets.
  • Radius Gold Inc., reported results of 35 rock chip samples collected at its recently acquired Plata Verde project in Chihuahua. Highlights include 142g/t Ag over 64m at Mina Mojonera, including 350 g/t Ag over 12m. “At Plata Verde, Ag mineralization occurs as massive to crustiform banded barite calcite with Ag chlorides, sulphosalt minerals and native Ag infilling and cementing fractures and breccia within a basaltic/andesite extrusive volcanic”. At Mina Real, located 150m south of Mina Mojonera, 75 rock chip samples were collected from the walls and remaining pillars with Ag grades varying from 8 and 730 g/t Ag, with an average grade of 276 g/t Ag. Minas Mojonera and Real define a zone of Ag mineralization approximately 550m long by 200m wide, with the south portion apparently displaced by a large fault, and largely covered by post-mineral rhyolite ignimbrites. Radius is planning to run an airborne magnetic survey to help define the extension of the host rocks under cover.

ON MINING

  • Avino Silver & Gold Mines Ltd., released Q1, 2020 production and financial results from its Avino mine in Durango. It processed 164,096 tonnes of 0.4 g/t Au, 57 g/t Ag, and 0.57% Cu to produce 1,531 Oz Au, 267K Oz Ag and 1.8M Lb Cu (684K Oz AgEq), with metallurgical recoveries of 73%, 89%, and 86% respectively, at cash cost of USD $9.83, and AISC of USD $14.88 per Oz AgEq payable.  The company reported revenues of USD $7.12M, mine operation income of USD $843K, cash of $6.7M, working capital of USD $1075M, an EBITDA and adjusted EBITDA of USD $372K  and USD $391K respectively.
  • Endeavour Silver Corp., presented consolidated production and financial results from its Guanacevi mine in Durango, Bolañitos mine in Guanajuato, and El Compas mine in Zacatecas. Endeavour produced 857.7K Oz Ag and 8,476 Oz Au for 1.5M Oz AgEq at an 80:1 Ag: Au ratio or 1.8M Oz AgEq at 110:1 ratio. Cash cost of $7.85 and AISC of $18.38 per Oz payable Ag, both net of Au credits. The company reported an income of $21.9M from the sale of 665.5K Oz Ag and 7,454 Oz Au at average realized prices of $15.33 per Oz Ag and $1,633 per Oz Au.
  • GoGold Resources Inc., reported Q1, 2020 production and financial results from its Parral Tailings project, Chihuahua. It processed 367K tonnes to produced 601K Oz AgEq, at cash cost of USD $12.33 and AISC of USD $15.10 per Oz AgEq. GoGold reported an income of $USD $8.6M, and cash of USD $19.1M.
  • Gold Resource Corporation, announced Q1, 2020 production and financial results from its Oaxaca mining unit, Oaxaca. The company milled 174.5K tonnes to produce 6,450 Oz Au, 402.5K Oz Ag, 1.1M Lb Cu, 5.6M Lb Pb, and 13.1M Lb Zn, at cash cost of $918 and AISC of $1,229 per Oz AuEq sold.
  • Golden Minerals Company, announced its financial results for the period Q1, 2020. The company reported revenue of USD $1.2M and net operating margin of USD $0.6M related to the lease of its oxide plant. It also reported cash and cash equivalents balance of USD $ 2.2M.
  • Great Panther Mining Limited, released Q1, 2020 consolidated production and financial results from its Topia, Durango and Guanajuato mine complex, Guanajuato. The company milled 68,965 tonnes of 318 g/t AgEq.
  • Hecla Mining Company, reported Q1, 2020 production and financial results from its San Sebastian mine in Durango. Hecla produced 346,625 Oz Ag and 2,802 Oz Au, at cash cost of $6.91 and AISC of $9.59 per Oz Ag produced.
  • Newmont Corporation, produced 87K Oz Au at AISC of $769 per Oz Au sold, or 288K Oz AuEq at AISC of $841 per Oz AuEq sold.
  • Pan American Silver Corp., presented Q1, 2020 production and financial results from its La Colorada mine in Zacatecas and Dolores mine in Chihuahua. At La Colorada, Zacatecas the company produced 1.6M Oz Ag and 1.1K Oz Au, at cash cost of USD $7.23 and AISC of USD $9.98 per Oz Ag produced. At Dolores, Chihuahua it produced 1.23M Oz Ag and 27.1K Oz Au, at AISC of USD $23.29 per Oz produced.
  • Premier Gold Mines Limited, released Q1, 2020 production and financial results from its Mercedes mine in Sonora. Premier milled 162,408 tonnes of 2.4 g/t Au and 27 g/t Ag to produce 11,587 Oz Au and 52.2K Oz Ag, with metallurgical recoveries of 93.9% and 37.1% respectively, at cash cost of USD $1,282 and AISC of 1,883 per Oz Au per Oz Au sold.
  • Torex Gold Resources Inc., reported Q1, 2020 production and financial results from its El Limon Guajes mining complex in Guerrero. It produced 108.5K Oz Au at cash cost of $794 and AISC of $975 per Oz Au sold. Torex reported an EBITDA and adjusted EBITDA of $39.4M and 67.4M respectively, and cash flow from operations of $29.5M.

ON FINANCING

  • Americas Gold and Silver Corporation, announced a bought deal public offering for gross proceeds of approximately CAD $25M (Cosalá mine, Sinaloa).
  • Fortuna Silver Mines Inc., provided an update to amend the financial covenants contained in its USD $150M credit facility. The credit facility requires the company to maintain a total debt to EBITDA ratio of not greater than3:1. As of the financial year ended December 31, 2019, the total debt to EBITDA ratio was 1.7:1. Fortuna has entered into discussions with its senior lenders under the credit facility, and obtained agreement in principle to amend the financial covenants. The amendment to the credit facility is subject to the completion of definitive documentation between the parties (San Jose mine, Oaxaca).
  • GR Silver Mining Ltd., entered into a bought deal brokered private placement with a syndicate of underwriters for aggregate gross proceeds of $6,021,000. The company also granted the underwriters an option to purchase more stock for additional gross proceeds of $903,150. Later on, the company upsized it to $8.1M (San Marcial and Plomosas projects, Sinaloa).
  • Minaurum Gold Inc., announced a private offering to raise gross proceed up to CAD $5M. Net proceeds will be used for the exploration of its Alamos Silver project in Sonora and for working capital purposes.
  • Mithril Resources Limited, announced that it is conducting a capital raising by way of a non-renounceable rights issue to shareholders for a minimum gross proceeds of A $1.5M and a maximum of A $2.46M. Net proceeds will be used primarily to advance exploration at its Copalquin project in Durango.
  • Magna Gold Corp., entered into an amendment to include the closing of a non-brokered private placement for gross proceeds of a minimum of $1.8M and a maximum of $2M. Net proceeds will be used for the acquisition of, and for working capital purposes in connection with the San Francisco mine, Sonora.

ON RESOURCES AND DEVELOPMENT

  • Discovery Metals Corp., released results from eight diamond drill holes collared at its Cordero project in Chihuahua. Goal of these holes was to define and extend the higher-grade mineralized footprint to the NE and SW of the Pozo de Plata zone. Significant drill intersections were encountered in hole C20-319 with 0.1 g/t Au, 70 g/t Ag, 1.5% Pb, and 1.9% Zn (207 g/t AgEq) over a width of 168.8m, including 0.2 g/t Au, 103 g/t Ag, 2.2% Pb, and 4.4% Zn (378 g/t AgEq) over 27.7m; and hole C20-317 with 0.22 g/t Au, 90 g/t Ag, 0.9% Pb, and 0.5% Zn (159 g/t AgEq) over 79m. 48 holes totaling 17,500 m have been completed to date at Cordero to understand the high-grade footprint. Assays from 16 holes are pending. All holes have been drilled roughly perpendicular to the main structural north-east trend of higher-grade mineralization.
  • GR Silver Mining Ltd., announced historical drilling results from its Plomosas Silver project and provided an update on its ongoing exploration program at its San Marcial project, both located in Sinaloa. At Plomosas, in San Juan Area, highlights include hole LRD-46 with 0.13 g/t Au, 198 g/t Ag, 1.7% Pb, and 0.5% Pb (261 g/t AgEq) over a true width (TW) of 6.4m, including 0.13 g/t Au, 404 g/t Ag, 0.7% Pb, and 0.3% Zn (444 g/t AgEq) over a TW of 3m; hole LRD-54 with 0.4 g/t Au, 821 g/t Ag, 7.4% Pb, and 4.5% Zn (1,304 g/t AgEq) over a TW of 2m; hole SJD-17 with 0.43 g/t Au, 521 g/t Ag, 4.6% Pb, and 1.6% Zn (705 g/t AgEq) over a TW of 1.9m; and hole SJD-10 with 0.8 g/t Au, 574 g/t Ag, 1.6% Pb, and 0.7% Zn (675 g/t AgEq) over a TW of 2.7m. “GR Silver Mining continues its review and validation of more than 500 surface and underground drill holes on all six zones, aiming to confirm additional multiple vein systems hosted in a set of regional high angle fault zones and shallow dipping younger regional faults”. At San Marcial project, it obtained positive initial Au results from channel sampling at two new targets including 28.94 g/t Au and 143 g/t Ag over 0.2m, and 6.81 g/t Au over 0.2m. It also completed the work to widen 170m an existing tunnel to reach the breccia-hosted high-grade mineralization. GR also commented that with all the accumulated data generated it has generated at least eight drill-ready targets to test.
  • Golden Minerals Company, completed PEA´s for its Rodeo and Velardeña projects in Durango. At Rodeo, the PEA shows a pre-tax NPV (8% discount rate) of USD $24.4M with a low start-up cost of USD $1.5M. Pending receipt of mining permits, mining and processing is planning for Q1, 2021. At Velardeña, the PEA shows a pre-tax NPV (8% discount rate) of USD $85.9M based on incorporating bio-oxidation processing as the key to achieving robust project economics. No development decision has been made with regard to this project.

ON DEALS AND CORPORATE ISSUES

  • Agnico Eagle Mines Limited, announced the election of directors during its annual and special meeting of shareholders (Pinos Altos, Chihuahua).
  • Alio Gold Inc., completed the sale of its San Francisco Mine in Sonora to Magna Gold Corp. Under the terms of the agreement, Timmins GoldCorp Mexico S.A. de C.V., a subsidiary of Alio Gold, received 9.74M of common shares of Magna and will receive USD $5M in cash (or a 1% NSR royalty in respect of the San Francisco Mine, if the cash payment is not made by Magna) within twelve months.
  • Argonaut Gold Inc., and Alio Gold Inc., received positive recommendations of its proposed merger announced on March 30, 2020. Argonaut and Alio shareholders of record at the close of business on March 30, 2020 and April 14, 2020 respectively are eligible to vote their common shares (El Castillo mine, Durango).
  • Azucar Minerals Ltd., announced it has granted stock options to certain directors, employees and consultants of the company to purchase an aggregate 425K common shares at a price of $0.11 per share (El Cobre project, Veracruz).
  • Xtierra Inc., received conditional approval for the acquisition of 87.99% interest of Minera Portree de Zacatecas S.A. de C.V. , for the amount of CAD $56K in cash less a deposit of CAD $26K previously paid, the remaining CAD $30K is payable in installments subject to certain milestones, and the issue to the vendor of 2M common shares of the company at a deemed value of CAD $0.05 per share. The TSXV has provided conditional approval of the acquisition which requires completion of legal documentation in Mexico (Bilbao project, Zacatecas).
  • Pan American Silver Corp., released its 2019 sustainability report, which includes details on Pan American’s environmental, social, governance (“ESG”), and health and safety performance.

ON SOCIAL RESPONSIBILITY

  • The Chihuahua Mining Cluster, donated MXP $200M to the Mexican Red Cross, which will be used to acquire the paramedics ´personal protection equipment to face the COVID-19 pandemic. The president of the Chihuahua Mining Cluster recognized the commitment of all mining units and suppliers belonging to the cluster for showing solidarity with its employees and with the communities, and declared that the mining industry has had to fight against the onslaught of the pandemic, since despite not having been considered an essential industry and being forced to close all its operations.
  • Esperanza Silver de México (Alamos Gold), delivered protective overalls to doctors and nurses at the IMSS Regional hospital 1 in Cuernavaca. This action was in addition to the previous delivery of KN95 masks and gloves that the mining company carried out at the Regional 1 hospitals of the IMSS, the ISSSTE Family Clinic in Cuernavaca, the Regional of Temixco and José G. Parres de Cuernavaca.
  • First Majestic Silver Corp., through its personnel of La Encantada mine in Coahuila, delivered pantries to five Ejidos from the Municipality of Ocampo. Personnel of the company prepared packages with items from the basic food basket that were delivered to the peasant families, house by house, in support of the health contingency by COVID-19. The local authorities appreciated the help of the mining company and other companies and social organizations that have brought support and health and humanitarian aid to the inhabitants of Ocampo.
  • Fresnillo plc, donated 2,000 covers, 40 gallons of disinfectant gel and 400 N95 masks to the hospitals of Zone No. 8 of the IMSS and General of the State of Sonora, in the city of Caborca, in support and recognition of the hard work carried out by the staff of these institutions.
  • Grupo Peñoles, in coordination with the Torreón City Council, donated 300 pantries and disinfectant products, for the benefit of residents of the Vicente Guerrero neighborhood, Torreón, near its Met-Mex Peñoles metallurgical plant.
  • Minera San Julián (Fresnillo plc), will provide mask to the Municipality of San Julian, Chihuahua. The production of mouth masks will be in charge of a community company in the town of Yerbitas, which was hired by Minera San Julián to contribute to the support of sanitary guidelines to face the COVID-19 pandemic. The mining company is also helping to generate employment and strengthen the local economy.
  • Aura Minerals Inc., in coordination with the Municipal Authorities of Concepción del Oro Zacatecas, has helped to implement measures designed to support the communities in this difficult time such as screening checkpoint for all those entering the city, contracting the local workforce to produce additional face masks for ongoing essential activities, providing canteens, transportation vehicles and health questionnaires, facilitating temperature scanning and the use of screening checkpoints, hiring additional medical personnel and supplying COVID-19 test kits.
  • Compañia Minera Pangea (McEwen Mining), donated cleaning kits to 109 families (354 persons) of seven communities near of its El Gallo mine in Sinaloa.

 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, bladed calcite in a low sulphidation epithermal vein system in a prospect in Sonora, Mexico.  Photo by Miguel A Heredia.