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.

Highlights on the First Week of August, 2018. Mining and Exploration News in Mexico

Marble breccia cemented by FeOx

By Miguel A Heredia

During the 31st week of the year (July 30th to August 05th, 2018), at least 20 press releases were announced by companies working in Mexico, with six informing on exploration results, five announcing production results, five communicating deals and corporate issues, two reporting on resources and developments, and two  announcing financing issues.  ON MEXICO ISSUES, no relevant news.  ON EXPLORATION, In Chihuahua, Silver Spruce received approval to drill its Pino de Plata project, Radius Gold-Pan American Silver announced a JV agreement to explore and drill the Amalia project, and VVC reported drilling results from its Samalayuca property. In Sinaloa, Goldplay reported drilling results from its El Habal project. In Durango, First Mining signed an agreement to option its Las Margaritas gold project to Gainey.  ON MINING, Several companies reported Q2, 2018 results on its Mexican operations. In Sonora, Alamos Gold announced Q2, 2018 results from their Mulatos and Chanate mines. In Sinaloa, McEwen provided Q2, 2018 results from its El Gallo mine. In Durango, Excellon announced Q2, 2018 results from its La Platosa mine. Great Panther reported Q2, 2018 results from their mining operations in Mexico and Peru. In Guerrero, Telson presented Q2, 2018 results from its Campo Morado mine. ON FINANCING, VVC announced a non-brokered private placement for $CA 1.5M. Colibri Resource negotiated an agreement to provide debt financing in an amount up to CAD $400K.  ON RESOURCES AND DEVELOPMENT, Premier Gold provided an exploration update on its Mercedes mine in Sonora.  Sierra Metals filed a NI 43-101 technical report for its Cusi mine in Chihuahua.  ON DEALS AND CORPORATE ISSUES, Goldplay secured eligibility for its shares and appointed its VP Corporate Development and Exploration. SilverCrest announced the resignation of one of its Directors. Equinox Gold announced court approval of the arrangement for the Solaris Copper spinout. VVC announced that its Annual General meeting for shareholders will be held on August 21. Radius Gold and Pan American silver entered in an agreement to explore the Amalia project in Chihuahua.

ON MEXICO ISSUES

  • No relevant news.

ON EXPLORATION

  • Silver Spruce Resources Inc., received approval for drilling its Pino de Plata project in Chihuahua. The company plans to perform a first phase of 1,500m of diamond drilling to test high grade targets identified with surface sampling, with a follow-up phase 2 where results warrant. The first drill target is El Terrero, an area of 2 square km area showing disseminated epithermal mineralization in intrusive rocks, where surface sampling returned up to 557 g/t Ag along with anomalous Au, Cu, Pb and Zn values. Six holes are planned with targeted depths to 100m. A second target is the Teodora Vein, where surface sampling reported up to 553 g/t Ag with anomalous values of Au, Cu, Pb and Zn. Three holes are proposed with planned depths to 100m. The third target is the Santa Elena Gossan, an area of 20 square km where surface rock sampling on carbonate replacement mineralization in limestone/marble and sandstone/hornfels assayed up to 349 g/t Ag with anomalous base metal values. Three to five holes are proposed in this target area with planned depths to 100m.
  • Radius Gold Inc., and Pan American Silver Corp., entered in a JV agreement to explore the Amalia project in Chihuahua. This option agreement is to explore a corridor of 3.5km of strike length and 600m of vertical interval, where 3 high grade targets showing epithermal Ag-Au mineralization in veins, vein breccias, and disseminated have been identified following the trace of a large regional fault zone. The Campamento target is a 500m by 70m zone of intense silicification and brecciation with massive and stockwork veining. A chip channel sampling returned 62m of 0.43 g/t Au and 98 g/t Ag. High grade has been also identified in this target with the most significant result returning 4.5m of 10.3 g/t Au and 202 g/t Ag. Radius and Pan American plan to drill test 100m to 250m below surface. The Guadalupe target is a high grade andesite structurally controlled breccia zone located 450m south along strike from the Campamento target and 250m lower in the geological section. A continuous chip sampling on the Guadalupe target returned 7m of 3.62 g/t Au and 1,048 g/t Ag, and 4m of 3.92 g/t Au and 888 g/t Ag. The Dulces target is a vein located 800m NE of Campamento target at the same elevation and occurs within an extensive argillic-altered andesite and related gold in soil anomaly. Sampling has returned 1m of 34 g/t Au and 13 g/t Ag, and 1.5m of 114.5 g/t Au and 57 g/t Ag.
  • VVC Exploration Corporation, reported drill results from its Samalayuca project in Chihuahua. The phase 3 was planned to drill 3,000m and begun in May 2018 with 8 holes completed to date. Results of the three first holes were 30m of 0.34% Cu and 6 g/t Ag, including 14m of 0.54% Cu and 10 g/t Ag; 7m of 0.39% Cu and 7 g/t Ag; and 25m of 0.43% Cu and 7 g/t Ag. These results extend the copper mineralization at La Gloria zone previously drilled in 2017.
  • Goldplay Explorations Ltd., announced initial results of four drill holes from its El Habal project in Sinaloa. The most significant results are 77.5m of 0.43 g/t Au, including 9.45m of 2.05 g/t Au, and 15.4m of 1.35 g/t Au. The mineralization intersected consisted of a series of mineralized breccias, structures/zone faults present in a 6km long mineralized corridor which represent a high-level gold system hosted by a volcanic sequence with intrusives and related hydrothermal fluids.
  • First Mining Gold Corp., and Gainey Capital Corp., signed an option agreement in which Gainey can acquires 100% of the Las Margaritas Gold project in Durango. Under the terms of the four year option agreement, Gainey can elect to make either annual share or cash payments to First Mining in the following amounts:

 

 

 

 

  1. Upon completion, Gainey will obtain 100% ownership of the Las Margaritas project and First Mining will retain a 2% net smelter returns (“NSR”) royalty, with Gainey having the right to buy back 1% of the NSR royalty for USD$1,000,000 up until the first anniversary of the commencement of commercial production at the project.

ON MINING

  • Alamos Gold Inc., presented Q2 2018 results from their Mulatos and El Chanate mines in Sonora. At Mulatos, the company produced 50.6K Oz Au at an all-in sustaining cost (AISC) per ounce of gold sold of $854. At El Chanate, Alamos produced 10.1K Oz Au at an AISC per ounce of gold sold of $1,442.
  • McEwen Mining Inc., reported Q2 2018 results from its El Gallo Fenix mine in Sinaloa. The compnay produced 10.8K GEOs (Silver and gold production are presented as GEOs). Total cash costs and AISC per GEO were $783 and $816 respectively.
  • Excellon Resources Inc., announced Q2 2018 results from its La Platosa mine in Durango. In Q2, 2018, the company milled 16.1K tonnes of 507 g/t Ag, 5.7% Pb, and 8.4% Zn to produce 277.7K Oz Ag, 1.8M Lb Pb, and 2.8M Lb Zn. Metallurgical recoveries for Ag, Pb, and Zn were 89.6%, 80.2%, and 82.2% respectively.
  • Great Panther Silver Limited, reported results from their mining operations in Mexico and Peru for the Q2, 2018 period. The company did not release detail information from its Mexican operations (Topia mine in Durango and Guanajuato Mine Complex in Guanajuato).
  • Telson Mining Corporation, presented Q2, 2018 results from its Campo Morado mine in Guerrero. The company processed 162.5K tonnes to produce 19.3M Lb Zn, and 1.3M Lb Pb, with metallurgical recoveries of 73.3% and 31.2% respectively.

ON FINANCING

  • VVC Exploration Corporation, announced a non-brokered private placement for $CA 1.5M. VVC has raised to date $CA 1.15M and expects to complete the rest $CA 350K in August.
  • Colibri Resource Corporation, negotiated an agreement with two shareholders to provide debt financing in an amount of up to CAD$400K.

 ON RESOURCES AND DEVELOPMENT

  • Premier Gold Mines Limited, provided an exploration update on its Mercedes mine in Sonora. The company announced the extension of a high grade vein system on its El Rey de Oro deposit. Significant underground drilling results are 16.55m of 6.21 g/t Au and 102 g/t Ag, 21.95m of 36.65 g/t Au and 171 g/t Ag, 20.5m of 8.1 g/t Au and 121 g/t Ag, and 9.2m of 8.33 g/t Au and 67.7 g/t Ag. Additionally, the company is conducting an underground drilling program to define the high grade Aida target located to the west of the main Mercedes vein where previous drilling has intersected a broad zone of low-grade mineralization with assays of up to 0.64 g/t Au and 0.79 g/t Ag across 31.5 metres. Premier also has the plan to drill test the Marianas vein once the drift has been established in H2 2018, and will go on with the definition and step-out drilling at Diluvio and Lupita areas that were recently brought into production.
  • Sierra Metals Inc., filed a NI 43-101 technical report for its Cusi mine in Chihuahua. The company released results of the PEA study. Results from the PEA include an after-tax net present value (NPV) of US$92.2 Million at an 8% discount rate, an after-tax internal rate of return (IRR) of 75%, a plant processing rate of currently 650 tonnes per day (TPD) growing to 1,200 TPD by Q1 2019 and 2,700 TPD by mid-2021, and a mine life of 9 years based on existing Mineral Resource Estimate.

ON DEALS AND CORPORATE ISSUES

  • Goldplay Exploration Ltd., appointed its VP Corporate Development and Exploration and secured eligibility by the Depositary Trusts Company for its shares on the OTC marketplace where the company trades under the symbol “GLYXF” (El Habal, Sinaloa).
  • SilverCrest Metals Inc., announced the resignation of one of its Directors. (Las Chispas, Sonora).
  • Equinox Gold Corp., announced final court approval of the arrangement for the Solaris Copper spinout (La Verde, Michoacan).
  • VVC Exploration Corporation, announced that its Annual General meeting of shareholders will be held on August 21 (Samalayuca, Chihuahua).
  • Radius Gold Inc., and Pan American Silver Corp., entered in a JV agreement to explore the Amalia project in Chihuahua. Pan American can earn an initial 65% of the property by making cash payments to Radius totaling $US 1.5M (of which $US 100K has been already paid), and expending $US 2M on exploration over four years, and can acquires an additional 10% by advancing the property to a FS.

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 marble breccia cemented by FeOx in an Iron Mine in Coahuila, Mexico. Photo by Miguel A Heredia.

Highlights on the Third Week of June, 2018. Mining and Exploration News in Mexico

 

By Miguel A Heredia

During the 25th week of the year (June 18th to June 24th, 2018), at least 23 press releases were announced by companies working in Mexico, with eight informing on exploration results, eight communicating deals and corporate issues, five  announcing financing rounds, one reporting on resources and development, and one running leaching tests.  ON MEXICO ISSUES, no relevant news.   ON EXPLORATION, In Sonora, Millrock reported trench results from its La Navidad project. In Chihuahua, Ethos Gold filed a draft NI 43-101 technical report for its la Purisima project. In Coahuila, Discovery Metals reported sampling results from its Puerto Rico project. In Sinaloa, Chesapeake released exploration results from its Yarely project and Riverside reported exploration results from its La Silla project. In Zacatecas, Excellon commenced a drill program at its Miguel Auza project while Defiance defined a significant anomaly at its San Acacio project.  ON MINING, Mexus Gold provided and update on progress from its 8 Brothers/370 gold project in Sonora.  ON FINANCING, Aura Silver announced the extension of 3.5M warrants. Harvest Gold closed a second tranche of a non-brokered private placement for CDN$149,600. Maverix entered in a revolving credit agreement to borrow up to US$50M. Prize amended terms of a non-brokered private placement to raise money for $6.5M. Starcore completed a private placement for CDN$3M. ON RESOURCES AND DEVELOPMENT, Sierra Metals announced PEA results for its Cusi Mine in Chihuahua. Minera Alamos provided an update on its Guadalupe de Los Reyes project in Sinaloa. ON DEALS AND CORPORATE ISSUES, Coeur signed a definitive agreement with Evrim to option the Sarape property in Sonora.  Avino and Consolidated Zinc announced management changes, and Colibri and Torex reported results from its annual general meeting of shareholders. Marlin, Gold Reign, and Sailfish entered in a definite arrangement agreement regarding a combination business. Equinox announced a spin-out of its copper assets to create Solaris Copper. Valterra entered into an option agreement to acquire the Los Reyes Cu-Au project in Chihuahua.

ON MEXICO ISSUES

  • No relevant news.

ON EXPLORATION

  • Millrock Resources Inc., reported trench results from its La Navidad project in Sonora. Significant results are 7m of 0.64 g/t Au; 8m of 0.5 g/t Au, 16m of 0.59 g/t Au; 4.5m of 1.63 g/t Au; 2m of 6.5 g/t Au, 1.3m of 5.26 g/t Au; and 1.5m of 4.5 g/t Au. Its partner Centerra Gold is funding the exploration program at La Navidad and has authorized an extension of the drilling program from 1,650m in 7 holes to 2,900m in 17 holes.
  • Ethos Gold Corp., filed a draft NI 43-101 technical report for its la Purisima project in Chihuahua. The mineralization target consists of low sulphidation epithermal veins which have been traced for over a N-S strike length of over 1.5km in length. The company signed a property access agreement to commence mapping and sampling work with 389 samples collected to date of which 189 have been already submitted to the lab for assays.
  • Discovery Metals Corp., reported sampling results from its Puerto Rico project in Coahuila. 293 channel samples were collected at the Zaragoza mine, of which 83 were from manto mineralization and returned an average grade of 129 g/t Ag, 4.3% Pb, 7.6% Zn, and 0.12% Cu.
  • Riverside Resources Inc., presented geochemical results of 52 samples collected at its La Silla project in Sinaloa. Significant results from the rock chip and channel samples are 1m of 2.1 g/t Au and 27 g/t Ag; 1m of 9.4 g/t Au and 196 g/t Ag; and 1m of 19.9 g/t Au and 200 g/t Ag.
  • Chesapeake Gold Corp., released exploration results, including phase 1 drilling from its Yarely project in Sinaloa. At Loretos prospect, the drill target is a blind skarn-porphyry system indicated by a significant chargeability anomaly. Significant results are 213m of 0.11% Cu, including 64m of 0.17% Cu. At the Central prospect, one of the two holes drilled intersected several 3 to 6m wide structures returning silver values ranging from 11 to 30 g/t. At Lucy prospect, two holes tested skarn/carbonate replacement manto mineralization. Drilling results returned 22m of 0.33 g/t Au and 1.5 % Zn; and 25m of 0.6 g/t Au, 22 g/t Ag, 0.25% Cu, and 1.6% Zn. At Sundae prospect, the company has identified a 3km long high level-low sulphidation epithermal system that runs for over 3km along strike, with individual structures varying from 1-5m in width. A preliminary geophysical survey showed a continuity of the vein host structures to over 500m depth. At Los Mimbres prospect, skarn and hornfels boulders with Cu and Pb sulphide mineralization were recently discovered adding a new target within the Yarely project. Mineralization identified at Los Mimbres is similar to that encountered at Metates. Stream sediment, soil, rock geochemistry and geological mapping are underway to advance this target to the drill stage.
  • Excellon Resources Inc., commenced a 3,000m drill program at its Miguel Auza project in Zacatecas to test targets generated from surface mapping, IP surveying, and structural work conducted since mid-2017 at El Cobre, Abejas, Carmen-Lechuzas, and Lomo de Las Minas prospects. Highlights from the surface sampling are 2.3 g/t Au and 667 g/t Ag at Lomo de Las Minas. Results up to 2.9 g/t Au and 300 g/t Ag were sampled at Carmen and El Cobre confirming mineralization in veins at both targets. Mineralization at Miguel Auza is hosted in epithermal quartz veins similar to those found at Fresnillo mining district.
  • Defiance Silver Corp., defined a significant geophysical anomaly at its San Acacio project in Zacatecas employing Atomic Energy Resonance Imaging (AERI) technology. The AERI identified a pipe shaped anomaly which measures 400m in width, 300m in length, and is open at depth. The AERI anomaly is coincident with a recently delineated IP target, and will be drill tested in the near future.

ON MINING

  • Mexus Gold US., provided and update on progress from its 8 Brothers /370 gold project in Sonora. The company has completed the crushing and loading of ore into the VAT leaching tank to run tests and expects to commence the leaching when tests are completed in the next days.

ON FINANCING

  • Aura Silver Resources, announced its intentions to extend the expiration date of 3.5M warrants from July 9, 2018 to July 9, 2020. The exercise price remains unchanged at $0.05 (Taviche, Oaxaca)
  • Harvest Gold Corporation, closed a second tranche for CDN$149,600 for a total of CAD$479,600 gross proceeds raised in the non-brokered private placement. Gross proceeds will be used to explore its Cerro Cascaron project in Chihuahua.
  • Maverix Metals Inc., entered into a 3 years revolving credit agreement with two bank institutions to borrow up to US$50M. The credit can be extendable through mutual agreement between the involved parties (La Colorada, Zacatecas)
  • Prize Mining Corporation, amended terms of a non-brokered private placement to raise money for $6.5M (Manto Negro, Coahuila).
  • Starcore International Mines Ltd., completed a private placement of secured bonds for CAD$3M (San Martin, Queretaro)

 ON RESOURCES AND DEVELOPMENT

  • Sierra Metals Inc., announced PEA results for its Cusi Mine in Chihuahua. Highlights include an after-tax NPV of $92.2M USD at an 8% discount rate, a 9 years mine life based on existing mineral resource estimate, and a life of mine silver production of 30 M Oz. The company also reported Mineral Resource Estimate as at February 12, 2018. Total measured mineral resources are 362K tonnes @ 225g/t Ag, 0.55% Pb, 0.68% Zn, and 0.13g/t Au. Total indicated resources are 4.2M tonnes @ 217g/t Ag, 0.64% Pb, 0.66% Zn, and 0.21 g/t Au. Total inferred resources are 1.63M tonnes @ 158 g/t Ag, 0.54% Pb, 0.84% Zn, and 0.16 g/t Au.
  • Minera Alamos Inc., provided an update on its Guadalupe de los Reyes project in Sinaloa. The company commenced the mapping of the Mariposa- Zapote structure to evaluate extensions that have not been drilled and could be target areas to expand the resource. The company also collected metallurgical samples and are being prepared for Au leaching studies. It also commenced engineering studies to establish locations and preliminary designs for Au heap leaching facilities.

ON DEALS AND CORPORATE ISSUES

  • Coeur Mining Inc., signed a definitive agreement with Evrim Resources Corp., to option the Sarape property in Sonora. Coeur will have the exclusive right to acquire up to an 80% interest in the property by spending up to $16M USD on exploration, making staged cash payments of up to $2.5M USD, and completing a NI 43-101 compliant FS on a minimum measured and indicated resource estimate of 1M Oz AuEq, all within a ten-year period.
  • Marlin Gold Mining Ltd., Golden Reign Resources Ltd., and Sailfish Royalty Corp., have extended the previously announced LOI to June 29, 2018 to enter in a definitive arrangement agreement regarding a business combination of the Golden´s San Albino-Murra property in Nicaragua and Marlin´s La Trinidad property, México.
  • Equinox Gold Corp., announced plans to transfer all of its copper assets into a newly incorporated company named Solaris Copper Inc. (La Verde, Michoacan).
  • Valterra Resource Corporation, entered into an agreement to acquire the Los Reyes Cu-Au project in Chihuahua. Valterra may acquire a 100% interest, subject to a 2% royalty to a third party, by making staged payments totaling US$4M over a period of 5 years. Target consists of a +800m long Cu-Au rich skarn developed in the contact between a Tertiary-age granodiorite intrusive and Cretaceous-age limestones and shales.

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 copper system in Jalisco, Mexico. Photo by Miguel A Heredia.

Equinox Gold Announces Spin-out of Copper Assets to Create Solaris Copper

equinox announces spin-out of copper assets to create solaris copper

June21,2018–Vancouver, BC–Equinox Gold Corp.(TSX-V:EQX, OTC:EQXGF) (“Equinox Gold”or the“Company”) today announces plans to transfer all of its copper assets into a newly incorporated company named Solaris Copper Inc. (“Solaris Copper”).Equinox Gold will continue to focus on advancing theAurizona Gold Mine and the Castle Mountain Gold Mine to production while Solaris Copper explores and develops the copper projects tounlock the value of the copper portfolio.

Solaris Copper will hold a 100% interest in the resource-bearing Warintza copper-molybdenum project in Ecuador, a 60% interest in the La Verde preliminary economic assessment stage copper-silver-gold project in Mexico, a 100% interest in the Ricardo early-stage copper property in Chile, has negotiated earn-in agreements for two early-stage copper prospects in Peru, and is continuing to evaluate additional properties that fit the portfolio. Collectively, the projects host 3.7 billion pounds of copper in the measured and indicated category with an additional 4.6 billion pounds of copper in the inferred category, with significant exploration potential at all of the projects.

Highlights on the Third Week of December, 2017. Mineral Exploration in Mexico

During the 51st week of the year (December 18th to December 24th, 2017), at least 17 press releases were announced by companies working in Mexico. ON MEXICO ISSUES: The illegal blockade promoted by the Los Mineros Union since November 3, 2017 is showing how far the government is willing to go, or not, to establish the rule of law. ON EXPLORATION: two press releases from companies working in Mexico informed on exploration efforts during the week: In Chihuahua Radius Gold released good rock chip results from its Amalia project. In Sinaloa Gainey Capital is exploring the La Minita porphyry copper style property.  ON MINING: Great Panther announced government authorization for the construction of a second tailings storage facility at its Topia mine in Durango. Mexus Gold produced gold with a Merrill Crowe system installed at its Santa Elena mine in Sonora. Americas Silver announced the San Rafael mine at its Cosala complex is now on commercial production. ON FINANCING: Telson Resources entered into a US$15 M loan with Trafigura. SilverCrest completed a bought deal private placement for $10 M. Primero Mining agreed on an extension to its revolving credit facility. Torex Gold received a waiver to lower the threshold in the credit agreement from $50 M to $30 M. ON RESOURCES AND DEVELOPMENT: In Sonora, Oceanus Resources presented an update on the drilling of its El Tigre property. In Chihuahua, Consolidated Zinc announced the interception of massive sulfides on the Tres Amigos zone of its Plomosas property. In Puebla, Almaden released new results from follow-up  drilling at its Tuligtic property.  In Guerrero, Alio Gold provided the final results of the confirmation drilling at its Ana Paula project. ON DEALS AND CORPORATE ISSUES, Torex Gold suspended its workforce employment contracts on the basis of the illegal blockade that has halted all operations since November 3rd at its El Limon-Guajes mine in Guerrero. The company has made a call to the relevant authorities to remove the illegal blockade (which seems to have fallen on deaf ears). Orex Minerals, Canasil Resources and Pan American Silver signed an agreement to advance the Sandra Escobar project in Durango, same that includes provisions for Pan American participation on the discovery. Gainey Capital signed a LOI to acquire the La Minita property in Sinaloa. Marlin Gold can now spin-off its subsidiary Sailfish Royalty. Vangold is acquiring the San Carlos claim in Guanajuato, adjacent to its Pinguico property. Americas Silver agreed with Hochschild to amend the payment schedule on the acquisition of the San Felipe project in Sonora.

ON MEXICO ISSUES

  • On the Torex Gold El Limon – Guajes mine illegal blockade in Guerrero (Editor’s comment). The illegal blockade promoted by the Los Mineros Union since November 3, 2017 is showing how far the government is willing to go, or not, to establish the rule of law. The Los Mineros Union is clearly trying to extortionate Torex with an illegal blockade to obtain the Union contract at the site, and delaying the date for a formal voting process that the company has vowed to respect.

ON EXPLORATION

  • Radius Gold Inc. released rock sampling results from its Amalia project in Chihuahua. A new discovery in the San Pedro area returned 13 m @ 2.51 g/t Au, 164 g/t Ag in a continuous chip sample (10 individual samples), while new sampling 50 m above and along strike the Guadalupe zone returned 8 m @ 0.21 g/t Au, 264 g/t Ag. At the Campamento zone a 500×700 m zone of intense silicification and brecciation with massive and stockwork veining is interpreted as high level mineralization. On lower parts of the property sulfide rich fault breccias are hosted in andesites, where mineralization is narrower and higher grade. Epithermal Au-Ag mineralization occurs along 3.5 Km on strike and 600 m of vertical interval. Drill permitting documentation has been submitted.
  • Gainey Capital Corp. signed a LOI to acquire the 9,200 hectares La Minita Cu-Au-Ag property in Sinaloa. A series of NW trending shears host porphyry mineralization associated with intermediate and felsic dikes, which are more than 300 m in length and up to 10 m in width. Fine grained sericitic alteration, silicification, quartz stockworks and copper sulfides (bornite, chalcopyrite) as disseminations and veins occur in prospect pits by gambusinos.

ON MINING

  • Great Panther Silver Ltd. announced that SEMARNAT granted all permits for construction and operation of the new phase II tailings storage facility at its Topia mine in Durango.
  • Mexus Gold US informed that it has produced gold with the installed Merrill Crowe system at its Santa Elena mine in Sonora (not to mistake with First Majestic’s Santa Elena mine, also in Sonora). The Merrill Crowe system will continue to be tested until the end of the year, as mine site security is upgraded before full production begins.
  • Americas Silver Corp. announced that the San Rafael mine at the company’s Cosalá operations in Sinaloa is now in commercial production, as of December 19, 2017. Mine production is currently averaging 1,200 tonnes per day (tpd) and increasing.

ON FINANCING

  • Telson Resources Inc. entered into a loan facility and offtake agreement with Trafigura Mexico, S.A. de C.V., to sell 100% of the Pb-Zn concentrate produced at the Tahuehueto mine from January 2018 to December 2022. Trafigura provided Telson with with a US$15 M credit facility deliverable on three tranches: First tranche of US$7.5 M already received; Second tranche of US$5 M, 4 – 6 Months from signing; Third tranche US$2.5 M, 6 – 9 months of signing.
  • SilverCrest Metals Inc. completed the bought deal private placement previously announced, for gross proceeds of $10 M. The company paid a cash commission of $568 K on the proceeds of the offering.
  • Primero Mining Corp. agreed with its lenders to an extension of its revolving credit facility and guarantee provided by Wheaton Precious Metals Corp. to January 11, 2018. Primero is considering the divestiture of its San Dimas mine in Durango.
  • Torex Gold Resources Inc. has received a waiver by BNP Paribas on behalf of the lenders to lower the covenant threshold in the credit agreement from $50 M to $30 M until January 31, 2018.

ON RESOURCES AND DEVELOPMENT

  • Alio Gold Inc. provided the final results from the 2,000 m drill program to twin previous drill holes within the pre-feasibility pit for metallurgical test at its Ana Paula project in Guerrero. Highlighted intervals comprise: 112.0 m @ 3.85 g/t Au; 33.1 m @ 7.07 g/t Au; 54.6 m @ 7.19 g/t Au. Alio is now to test the extension of the breccia zone below the proposed pit, with a 4,000 m program, commencing in January.
  • Almaden Minerals Ltd. provided assay results from a follow-up drilling in an upper portion of the pre-feasibility pit on its Tuligtic property in Puebla. Highlighted drill intercepts comprise: 46.0 m @ 0.74 g/t Au, 26 g/t Ag; 24.0 m @ 0.62 g/t Au, 15 g/t Ag; 16.5 m @ 0.56 g/t Au, 10 g/t Ag; 50.5 m @ 0.73 g/t Au, 11 g/t Ag (including 10.5 m @ 2.45 g/t Au, 24 g/t Ag); 13.15 m @ 0.70 g/t Au, 8 g/t Ag; 32.0 m 0.82 g/t Au, 25 g/t Ag; 14.7 m @ 0.91 g/t Au, 27 g/t Ag; 10.25 m @ 1.16 g/t Au, 26 g/t Ag.
  • Consolidated Zinc Ltd. announced that drilling on the Tres Amigos North zone intersected 5.60 m and 4.35 m respectively of massive sulfides. “Assays are pending but visual analysis shows mineralisation comprises banded textured massive sulphides with very fine to fine-grained pyrite overprinted by coarse-grained yellow to reddish sphalerite and minor galena associated with carbonates”. Results are pending.
  • Oceanus Resources Corp. completed the fall 2017 drill program which comprised 600 m of diamond drilling to define the strike and dip of the high-grade Caleigh vein and the low-grade alteration zone in the hanging wall. Assays for the last six holes are pending, and expected to be released in January 2018. Work during Q1 2018 is to focus in locating and defining other high-grade vein systems in the property, and begin to look for mineralization on the favorable El Tigre formation over a distance of 5 km.

ON DEALS AND CORPORATE ISSUES

  • Torex Gold Resources Inc. informed it has suspended the employment contracts of its workforce in Mexico, a direct result of an illegal blockade at its El Limon-Guajes mine in Guerrero. The blockade by the Los Mineros Union, “an outside union that wants to take over representation of the employees who already have a union. Since the blockade began, on November 3, 2017, the Company has continued to pay its workforce, except for the minority that have participated in the illegal blockade”. Torex has made a call to the relevant authorities to remove the illegal blockade, as they have committed to do, and restore the rule of law. The company is willing to work with the Union the employees select, but it is essential the illegal blockade is lifted to resume work after Christmas. The company stresses that “The risk of violent confrontation continues to escalate and we urge the authorities to restore law and order and diffuse the tensions, so that employees of the Company, contractors, and suppliers, can go back to work and provide for their families.”
  • Orex Minerals Inc. signed a non-binding agreement with Canasil Resources Inc. and Pan American Silver Corp. to advance exploration in the Sandra Escobar mining camp in Durango. Under the terms of the LOI (Letter of Intention) the Orex (55%)-Canasil (45%) JV is to grant Pan American a 10% interest in the Sandra property, with the opportunity for Pan American in the next four years to earn-in an additional 41% in the Sandra property by contributing US$5 M toward the operations of both properties, with US$2 M required during the first two years. If Pan American elects not to continue during the earn-in period, the initial 10% will revert back to the Orex-Cansil JV. If Pan American chooses to further advance the properties by completing a pre-feasibility study, it will retain a 60% interest and the Orex-Canasil JV 40%.
  • Gainey Capital Corp. signed a LOI with Asteria Mining Services S.A.P.I. de C.V. to acquire 100% of the 9,200 hectares La Minita Cu-Au-Ag property in Sinaloa.
  • Marlin Gold Mining Ltd. obtained a final order from the Supreme Court of British Columbia to implement the company’s previously announced plan of arrangement to reorganize its business, including the spin-off of its subsidiary Sailfish Royalty Corp.
  • Vangold Mining Corp. entered into an acquisition agreement for a 100% interest on the San Carlos claim, in Guanajuato. The aggregate purchase price of $CDN425 K is to be paid through the issuance of CDN$350 K in Vangold shares and the remaining CDN$75 K will be paid in cash. The San Carlos property is close to Vangold’s El Pinguico and Patito I & II mineral claims.
  • Americas Silver Corp. agreed with Minera Hochschild to amend the timing of payment under its option agreement on the San Felipe project in Sonora. The total consideration for a 100% interest in the property is US$15 M in cash (plus VAT), of which US$7 M were paid in March, US$500 K are to be paid on January 2018, US$500 K on April 2018, US$1 M on July 2018 and US$6 M on December 2018.

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 below, Fault slickensides on quartzite, Durango. Photo by Jorge Cirett.

DCP00749

Canasil Shareholders Approve Proposed Spin-off of B.C. Properties to Canmine Minerals Inc. At Special Meeting of Shareholders held on December 12, 2017

canasil_dec 14, 2017

Vancouver, December 14, 2017 – Canasil Resources Inc. (TSX-V: CLZ, DB Frankfurt: 3CC, “Canasil” or the “Company”) announces that the Company’s shareholders have approved the Plan of Arrangement to segregate its British Columbia properties into a separate company, Canmine Minerals Inc. (“Canmine”), at the Special Meeting of Shareholders held on December 12, 2017. The details of votes cast at the Special Meeting are summarized in the table below:

Resolution Votes Shares Voted % Voted % of O/S Shares
PLAN OF ARRANGEMENT For
Against
43,184,652
50,422
99.88
0.12
42.38
0.05
CANMINE STOCK OPTION PLAN For
Against
43,106,652
128,422
99.70
0.30
42.30
0.13

The Company will now apply for the Final Court Order to approve the arrangement, following which the Directors of Canasil and Canmine will proceed with the arrangements for meeting the initial listing requirements for the listing of Canmine on the TSX Venture Exchange (“the “Exchange”). Assuming that the Court Order is granted, the Directors of Canasil and Canmine will determine the timing for the remaining steps for the completion of the Arrangement.