Quartz hydrothermal breccia
By Miguel A Heredia
During the 46th week of the year (November 15th to November 21st, 2021), at least 35 press releases were announced by companies working in Mexico, and 4 news published by the media with twelve reporting resources and developments of their properties, seven announcing financial issues, seven communicating production and financial results, four informing on exploration results, four disclosing deals and corporate issues, four commenting on Mexican issues, and one discussing social issues. ON MEXICO ISSUES, Fortuna Silver announced that it is trying to avoid the closure of its San Jose silver mine in Oaxaca after the expiration of its environmental permit last month. The company stated that it is fighting for the stability of 1,200 active workers of its San Jose mine. Mexico´s Secretary of the Environment and Natural Resources (SEMARNAT) announced that it will carry out an indigenous consultation to define the future of the San Jose mine in Oaxaca. ON EXPLORATION, In Sonora, Tocvan announced exploration plan for its El Picacho project, and Ridgestone received permit for drill program on the El Cobre target at its Rebeico project. In Chihuahua, Mammoth Resources reported initial drill results from its diamond drilling program conducted on Carneritos area at its Tenoriba project. In Nayarit, Sierra Madre presented trenching sampling results from its la Tigra project. ON MINING, Argonaut announced Q3, 2021 production and financial results from their Mexican operations. Excellon presented Q3, 2021 production and financial results from its Platosa mine in Durango. Elemental Royalties reported the production of 9,722 Oz Au from its Mercedes mine in Sonora during the period Q3, 2021. Americas Gold and Silver announced that its Cosalá operations are expected to ramp-out to full production of approximately 1,800 tonnes per day next month. SilverCrest reported unaudited financial results for the period Q3, 2021. Starcore announced Q2, 2021 production results from its San Martin mine in Queretaro. DynaResource reported year to date 2021 production and financial results at September 30, 2021 from its San Jose de Gracia mine in Sinaloa. ON FINANCING, Advance increased its previously announced non-brokered private placement to $475K (Tabasquena property, Zacatecas). Aloro reported that the final CAD 60K + VAT payment of the option agreement for the Los Venados claim, Sonora with Almadex has been made by Alamos Gold. Guanajuato Silver arranged an early payment of USD $2.5M to Endeavour Silver for the acquisition of the El Cubo mine in Guanajuato. Mag Silver signed a binding commitment letter with the Bank of Montreal for a fully underwritten USD $40M revolving credit facility. Aztec closed the final tranche of its oversubscribed CAD $1.6M private placement for total proceeds of CAD $575K (Cervantes project, Sonora). Guanajuato Silver arranged a non-brokered private placement offering for gross proceeds of CAD $8.25M (El Cubo mine, Guanajuato). Silver Wolf announced a non-brokered private placement for gross proceeds of up to CAD $1.5M (Ana Maria project, Durango). ON RESOURCES AND DEVELOPMENT, Fabled released results from hole SM20-40 collared at its Santa Maria project in Chihuahua. GoGold presented results from the last nine holes collared at its Los Ricos project in Jalisco, prior to upcoming mineral resource estimate. Orex filed a NI 43-101 technical report for a mineral resource estimate on its Coneto project in Durango. Orla provided a construction update of its Camino Rojo project in Zacatecas. Oroco commenced a diamond drilling program on Brasiles Zone at its Santo Tomas project in Sinaloa. Prime Mining commenced a Phase 2 drilling program on its Los Reyes project in Sinaloa, which will consist of 250 holes for a total of 50,000m. Silver Dollar began an initial 3,000m drilling program at its la Joya property in Durango. SilverCrest provided an update on the construction of its Las Chispas mine in Sonora. Southern Silver released drill results from its Cerro Las Minitas project, Durango. Capitan Mining presented results from five RC holes collared on El Capitan deposit at its Peñoles project, Durango. Mithril released its maiden JORC mineral resource estimate for the first target area at its Copalquin project, Durango. Silver Tiger presented drill results from ten holes collared on the Protectora and Caleigh veins at its El Tigre project in Sonora. ON DEALS AND CORPORATE ISSUES, Fabled received an approval from the court to spin-out its copper exploration assets in Fabled Copper Corp. Rockland signed an option agreement to acquire 100% interest in the Elektra clay lithium project in Sonora. Starcore reported results from its annual general meeting of shareholders (San Martin mine, Queretaro). Goldgroup announced the appointment of its new CEO (Cerro Prieto mine, Sonora). ON SOCIAL RESPONSIBILITY, Fresnillo plc applies development and scientific research, consolidating the concept of what they call “sustainable mining”.
ON MEXICO ISSUES
- Fortuna Silver Mines Inc., announced that it is trying to avoid the closure of its San Jose silver mine in Oaxaca after the expiration of its environmental permit last month. Although the San Jose mine has been in operation since 2011, its main environmental authorization expired on October 23, despite the company’s efforts since May to request an extension of the permit. A recent court order allows the mine to continue operating, but only temporarily. Maria Luisa Albores, the Environment Secretariat issued a statement saying it would work to organize a consultation with indigenous communities close to the project as part of the environmental authorization. It did not provide details on the timing of the consultation, nor did it say whether the mine could continue to operate in the meantime. The company stated that it is fighting for the stability of 1,200 active workers of its San Jose mine.
- Mexico’s Secretary of the Environment and Natural Resources (SEMARNAT) announced that it will carry out an indigenous consultation to define the future of the San Jose mine in Oaxaca. A dozen of Zapotecas communities will decide whether the San José mine, owned by Minera Cuzcatlán, will continue operating in the Valles Centrales region of Oaxaca, through a consultation carried out by the Ministry of SEMARNAT. It should be noted that the San José mine has four environmental impact authorizations in force, however there is another one that expired on October 23, and although the company requested its extension in due time and form, SEMARNAT has not issued a ruling.
- Fortuna Silver Mines Inc., provided an update on the appeal to the denial of the extension of the environmental impact authorization (EIA) at its San Jose mine, Oaxaca. “The appeal will be brought by Minera Cuzcatlán in the Mexican court. The grounds for the appeal are that Minera Cuzcatlán is in full compliance with all material environmental laws, and therefore Minera Cuzcatlán has the right to an extension of the EIA under applicable law”.
- Tocvan Ventures Corp., announced exploration plan for its El Picacho project in Sonora, where five primary targets have been identified to date combining for over 6km of prospective trend. The company plans to carry out surface sampling and detailed target mapping, trenching and channel sampling of priority targets, and drill targeting. The project is fully permitted for 1,995m of trenching, 60 drill holes (up to 15,000m), and 2.2km of access roads.
- Ridgestone Mining Inc., received permit for drill program on the El Cobre target at its Rebeico project in Sonora. This maiden drill program will consists of 14 RC holes for a total of approximately 2,700m, and will be conducted along the main El Cobre structure, where recent grab and rock-chip sampling of the surface stockpile of mined material from the El Cobre structure returned up to 3.5% Cu, 53 g/t Ag and 0.52 % Mo over widths of up to 5.0m.
- Mammoth Resources Corp., reported initial drill results from its diamond drilling program conducted on Carneritos area at its Tenoriba project in Chihuahua. Four diamond holes have been completed for a total of 426m. Highlights include hole TEN21-01 with 0.31 g/t Au and 17 g/t Ag (0.53 g/t AuEq) over 37.5m, including 0.47 g/t Au and 75 g/t Ag (1.7 g/t AuEq) over 4.5m; hole TEN21-03 with 0.54 g/t Au and 4 g/t Ag (0.59 g/t AuEq) over 43.5m, including 0.69 g/t Au and 3 g/t Ag (0.73 g/t AuEq) over 6m, including 0.67 g/t Au and 5 g/t Ag (0.73 g/t AuEq) over 4.5m; and hole TEN21-04 with 0.53 g/t Au and 7 g/t Ag (0.63 g/t AuEq) over 19.5m.
- Sierra Madre Gold and Silver Ltd., presented trenching sampling results from its la Tigra project in Nayarit. Trench LTZ01 returned 1.44 g/t Au and 10 /t Ag (1.58 g/t AuEq) over a length of 8.6m; trench LTZ02 returned 0.46 g/t Au and 56 g7t Ag over a length of 19.7m; trench LTZ03 returned 1.22 g/t Au and 7 g/t Ag (1.3 g/t AuEq) over a length of 11.6m, including 2.52 g/t Au and 10 g/t Ag (2.7 g/t AuEq) over a length of 4.25m; and trench LTZ04 returned 1.45 g/t Au and 9 g/t Ag (1.57 g/t AuEq) over a length of 12.8m, including 3.22 g/t Au and 35 g/t Ag (3.69 g/t AuEq) over a length of 5.3m.
- Argonaut Gold Inc., announced Q3, 2021 production and financial results from their Mexican operations. At El Castillo mine, Durango, Argonaut mined 2,143,000 tonnes of 0.28 g/t Au to produce 11,123 Oz Au and 10,448 Oz Ag or 11,246 Gold Equivalents Ounces (GEOs). It sold 10,473 Oz Au and 11,875 Oz Ag (10,612 GEOs) at a cash cost of USD $1,173 per Oz Au sold. At San Agustin Mine, Durango, the company mined 2,598,000 tones of 0.30 g/t Au to produce 16,258 Oz Au and 116,309 Oz Ag (17,626 GEOs). Argonaut sold 17,611 Oz Au and 121,993 Oz Ag at a cash cost of USD $1,011 per Oz Au sold. At La Colorada mine, Sonora, the company mined 1,224,000 tonnes of 0.67 g/t Au to produce 15,360 Oz Au and 37590 Oz Ag (15,802 GEOs). It sold 15,332 Oz Au and 35408 Oz Ag (15,749 GEOs) at a cash cost of USD $696 per Oz Au sold.
- Excellon Resources Inc., presented Q3, 2021 production and financial results from its Platosa mine in Durango. The company mined 21,592 tonnes and milled 21,302 tonnes of 526 g/t Ag, 4.9% Pb, and 5.4 % Zn with metallurgical recoveries of 90.9%, 81.2%, and 78.3% respectively. Excellon produced 326.7K Oz Ag, 1.87M Lb Pb, and 1.98M Lb Zn (521.2K Oz AgEq) at total and AISC of USD$11.02 and USD$21.52 per Oz Ag payable respectively. The company reported revenues of USD $9.2M; gross profit of USD $1.8M, and cash and marketable securities of USD $5M at September 30, 2021.
- Elemental Royalties Corp., reported the production of 9,722 Oz Au from its Mercedes mine in Sonora during the period Q3, 2021.
- Americas Gold and Silver Corporation announced that its Cosalá operations are expected to ramp-out to full production of approximately 1,800 tonnes per day next month. Concentrate shipment have resumed. A return to revenue and cash flow generation is expected later in Q4, 2021.
- SilverCrest Metals Inc., reported unaudited financial results for the period Q3, 2021. The Company recorded USD $42.1M as development expenditures under mineral property, plant and equipment, for the Las Chispas Project, which primarily consisted of decline construction and underground working of USD $17.2M; drilling costs of USD $9.7M; field and administrative costs of USD $6.3M; and salaries and remuneration of USD $3.3M. The Company also recorded additions, during the nine months ended September 30, 2021, of USD $60M related to the Las Chispas Project as mineral property, plant and equipment for various items which was primarily construction in progress. At September 30, 2021, SilverCrest had cash and cash equivalents of USD $199M. At September 30, 2021, the Company had value-added taxes (“IVA”) receivable in Mexico of USD $17.9M. The Company has financed its operations to date through the issuance of common shares and debt. The Company currently has no operations from which to derive revenues.
- Starcore International Mines Ltd., announced Q2, 2021 production results from its San Martin mine in Queretaro. The company milled 56,061 tonnes of 1.56 g/t Au and 23 g/t Ag with metallurgical recoveries of 87.81% and 54.83% respectively, to produce 2,782 Oz AuEq.
- DynaResource Inc., reported year to date 2021 production and financial results at September 30, 2021 from its San Jose de Gracia mine in Sinaloa. The company mined and milled 66,695 tonnes of 9.48 g/t Au with a metallurgical recovery of 89.45%, to produce 18,141 Oz Au, from which 16,036 Oz Au were sold. The company reported revenue of $25.9M, net operating income of $11.3M, and earnings per share of $0.64.
- Advance Gold Corp., increased its previously announced non-brokered private placement to $475K (Tabasquena project, Zacatecas).
- Aloro Mining Corp., reported that the final CAD 60K + VAT payment of the option agreement for the Los Venados claim, Sonora with Almadex Minerals Limited has been made by Alamos Gold Inc. Aloro also reported that by mutual agreement with Alamos, the second year work commitment was reduced from USD $1.5M to USD $750K, while the third year work commitment was increased from USD $3M to USD$3.75M, to total USD $M to earn 70% interest in the Los Venados project.
- Guanajuato Silver Company Ltd., arranged an early payment of USD $2.5M promissory note to Endeavour Silver Corp., for the acquisition of the El Cubo mine in Guanajuato. In consideration, Endeavour has agreed to reduce the principal amount of the note by USD $25K and settle the Mexican VAT for common shares of the company. It will issue 901,224 common shares to Endeavour at a deemed price of CAD $0.55 per share to settle VAT totalling USD $396K.
- Mag Silver Corp., signed a binding commitment letter with the Bank of Montreal for a fully underwritten USD $40M revolving credit facility. The facility will be used to develop its Juanicipio project in Zacatecas, as well as for working capital and general corporate purposes (Mag Silver only controls 44% of the project).
- Aztec Minerals Corp., closed the final tranche of its oversubscribed CAD $1.6M private placement for total proceeds of CAD $575K. Part of the proceeds will be used to conduct exploration work on its Cervantes project in Sonora, as well as for general working capital purposes.
- Guanajuato Silver Company Ltd., arranged a non-brokered private placement offering of 15M units at a price of CAD $0.55 for gross proceeds of CAD $8.25M. The net proceeds from the offering will be used to fund the ongoing exploration, development, and expansion of the Company’s El Cubo mine and mill complex and El Pinguico silver and gold project, both located near the city of Guanajuato, Mexico; and for general corporate and working capital purposes.
- Silver Wolf Exploration ltd., announced a non-brokered private placement financing for up to 6M units at a price of CAD $0.25 per unit for aggregate gross proceeds of up to CAD $1.5M. Net proceeds will be used for financing the initial drill program at its Ana Maria project in Durango, and for general working capital purposes.
ON RESOURCES AND DEVELOPMENT
- Fabled Silver Gold Corp., released results from hole SM20-40 collared at its Santa Maria project in Chihuahua. The drill hole encountered seven gold bearing zones as shown in the figure below: